Annual Report for the Year Ended 31 March 2018 Annual Report 2017/18

Northern Cape Provincial Legislature Vote 2

Northern Cape Provincial Legislature ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2018 ANNUAL REPORT 2017/18

vigilant always for ISBN 978-0-621-46758-1 PR 393/2018 our people

Designed & printed by SwiftPrint, Tel: 053 839 2900, Kimberley

NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

THE NORTHERN CAPE PROVINCIAL LEGISLATURE

ANNUAL PERFORMANCE REPORT (APR)

REFLECTING PERFORMANCE AGAINST PREDETERMINED OBJECTIVES

FOR THE FINANCIAL YEAR

01 APRIL 2017 TO 31 MARCH 2018

“VIGILANT ALWAYS FOR OUR PEOPLE”

NORTHERN CAPE PROVINCIAL LEGISLATURE: VOTE 2

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NORTHERN CAPE PROVINCIAL LEGISLATURE

PHYSICAL ADDRESS: Nobengula Extension, Galeshewe Kimberley 8301

DRAFTANNUAL ANNUAL REPORT REPORT 2017/2018 2017/2018 POSTAL ADDRESS: Private Bag X5066 Kimberley

8300 SUBMISSION OF THE ANNUAL REPORT TO THE SPEAKER:

Hon. M Mmoiemang

SPEAKER TO THE NORTHERN CAPE PROVINCIAL LEGISLATURE

I have the honour of submitting the Annual Report of the Northern Cape Provincial Legislature for the period 1 April 2017 to 31 March 2018.

______

PB Moopelwa

SECRETARY TO THE LEGISLATURE 31 May 2018 TELEPHONE NUMBER/S: +27 53 8398000 FAX NUMBER: +27 53 8398094 EMAIL ADDRESS: [email protected] WEBSITE ADDRESS: www.ncpleg.gov.za

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NORTHERN CAPE PROVINCIAL LEGISLATURE

PHYSICAL ADDRESS: Nobengula Extension, Galeshewe Kimberley 8301

DRAFT ANNUAL REPORT 2017/2018 POSTAL ADDRESS: Private Bag X5066 Kimberley

8300 SUBMISSION OF THE ANNUAL REPORT TO THE SPEAKER:

Hon. M Mmoiemang

SPEAKER TO THE NORTHERN CAPE PROVINCIAL LEGISLATURE

I have the honour of submitting the Annual Report of the Northern Cape Provincial Legislature for the period 1 April 2017 to 31 March 2018.

______

PB Moopelwa

SECRETARY TO THE LEGISLATURE 31 May 2018 TELEPHONE NUMBER/S: +27 53 8398000 FAX NUMBER: +27 53 8398094 EMAIL ADDRESS: [email protected] WEBSITE ADDRESS: www.ncpleg.gov.za i ii

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OFFICE BEARERS

Hon Kenny Mmoiemang Hon Juanita Beukes MPL – ANC MPL - ANC Speaker Deputy Speaker

Hon Mmoiemang was sworn-in as MPL in Hon Beukes was sworn-in as MPL in 2004, 2009 where after he was appointed MEC of COGHSTA and later Speaker of the Legislature appointed as Deputy Speaker since 2009 from 2013. A Lawyer by profession, and currently serves as Chairperson of Hon Mmoiemang furthered his tertiary the Standing Committee on Programme, education at UNIBO and continued his Committee on Ethics & Conduct, Sub- studies at WITS where he obtained his BProc, committee on Internal Arrangements LLB and Postgraduate Diploma in Advanced and Deputy Chairperson of the Standing Governance and Public Leadership. He Committee on Rules. Hon Beukes, a nurse by is currently pursuing his Masters in profession, furthered her tertiary education Governance & Political Transformation with at the UOFS and Limpopo Universities where UOFS. Hon Mmoiemang, practiced as an Attorney and in 2001 became MM at the JTG she obtained a Masters Degrees in both District Municipality. Currently a member Health Science and Public Administration of the Provincial Executive Committee of the and Management. She was awarded a ANC-Northern Cape - was elected Deputy Masters Certificate in Public Administration Chairperson in 2008 and acting Chairperson from the Commonwealth University in in 2015-2017. London in 2017 and a Honorary Doctorate.

Hon Solomon P Mabilo Hon Cukelwa M Chotelo MPL – ANC MPL - ANC Chairperson of Committees Deputy Chairperson of Committees Hon Mabilo was sworn-in as MPL in 2009 and appointed as MEC for Transport, Safety Hon Chotelo was sworn-in as MPL in 2009 & Liaison and later MEC of Environment and and appointed MEC for Social Development Nature Conservation. He was sworn-in as in June 2013 to February 2018. She’s Member of National Assembly in 2014 to currently appointed as Deputy Chairperson 2017 and again as MPL in February 2018. He of Committees and serves as Chairperson was appointed as Chairperson of Committees of the Portfolio Committee on Health & in March 2018. Hon Mabilo furthered his Social Development. Hon Chotelo furthered tertiary education through Phatsimang her tertiary education at Thaba Nchu College where he obtained a Secondary College of Education and the University Teachers Diploma in 1992. He continued of Port Elizabeth where she obtained a his studies at WITS and UJ and obtained a Diploma in Education (Primary) in 1996 and Graduate Certificate in Governance & Public Higher Diploma in Education in 2002. She Leadership and is currently completing a further successfully completed a Graduate Postgraduate Diploma in Public Policy & Certificate in Advanced Governance and African Studies. Public Leadership at WITS.

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OFFICE BEARERS

Hon Maruping M Lekwene MPL - ANC Chief Whip

Hon Lekwene was as sworn-in MPL in 2014 and was later appointed as Chief Whip in February 2018. He currently serves as Chairperson of the Portfolio Committee on Education, Sports, Arts & Culture. Hon Lekwene furthered his tertiary education at the University of KZN and UNISA respectively where he obtained a BA Arts Degree in 2014. He continued his studies at WITS where he obtained a Postgraduate Certificate in Advanced Governance & Public Leadership and is currently completing a Postgraduate Diploma.

Hon Galerekwe M Manopole Hon Gail D Parker MPL - ANC MPL - ANC Deputy Chief Whip Committee Chairperson

Hon Manopole served as a Member of Parliament Hon Parker was sworn-in as MPL in 2013 and at NCOP House since 2014 serving in various Portfolios and as co-chairperson of Ad-hoc was later appointed as Chief Whip until February Committee and later sworn-in as MPL in October 2018. She currently serves as Chairperson of the 2017. She was appointed as Deputy Chief Standing Committee on Constitutional Affairs Whip in February 2018 and currently serves and Petitions. Hon Parker furthered her tertiary as Chairperson of the Portfolio Committee on education at UCT where she obtained her BA Safety, Transport & Public Works. Hon Manopole Degree in 1988. She continued her studies at the furthered her tertiary education through UCT UWC and obtained a MPhil in 2005. Hon Parker where she obtained an advanced Diploma in Public Administration. She continued her studies completed a Graduate Certificate in Advanced at UJ and is currently completing a Postgraduate Governance and Public Leadership at WITS and is Diploma in Public Policy & African Studies. currently completing a Postgraduate Diploma.

Hon Alexandra J Beukes Hon Isaac T Dithebe MPL - ANC MPL - ANC Committee Chairperson Committee Chairperson

Hon Beukes was sworn-in as MPL in 2009 and Hon Dithebe, was sworn-in as MPL in 2014 and currently serves as Chairperson of the Portfolio currently serves as Chairperson on the Portfolio Committee on COGHSTA and Standing Committee Committee on Agriculture, Rural Development, Environment & Conservation. A Dentist by on Public Accounts. Hon Beukes furthered her profession, Hon Dithebe furthered his tertiary tertiary education through UNISA and WITS and education at the Universities of the Limpopo obtained a Certificate in Public Administration, and Pretoria where he obtained his BSC in 1995 Management & Leadership and a Graduate and Bchd (Dentistry) in 2002. Hon Dithebe Certificate in Advanced Governance and Public continued his studies at WITS and obtained a Leadership. Her involvement with politics started Graduate Certificate in Advanced Governance and in 1991 where she served as Chairperson on this Public Leadership and is currently completing a Forum and became the Deputy Chairperson of the Postgraduate Diploma. He served as ANC Frances ANC Namakwa Region from 2006 to 2011. Baard Region Chairperson.

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Hon Andrew Louw MPL – DA Leader of the Official Opposition

Hon Louw hails from Galeshewe. He completed a number of qualifications in management, marketing and labour law. Hon Louw worked as marketing manager of Transnet before joining the DA. He served as a Councillor in Sol Plaatje Local Municipality for three years before becoming a Member of Parliament and the DA’s Shadow Minister of Labour in 2009. Shortly thereafter, he was elected as the DA Northern Cape Provincial Leader and currently serves on the Legislature Portfolio Committees of Co-operative Governance, Legislature and Premier’s Affairs.

Hon Harold McGluwa Hon Boitumelo M Babuseng MPL – DA MPL - DA Whip Official Opposition Hon Babuseng was sworn-in as MPL in 2014 and Hon Mcgluwa was self-employed until he was currently serves on the Portfolio Committee appointed as Researcher for the ID between on Finance, Economic Development & Tourism. 2009 and 2012 and later sworn-in as MPL in 2012 Hon Babuseng furthered his tertiary education and appointed Leader of the ID. Hon Mcgluwa at WITS where he obtained his BA (LAW) was again sworn-in as MPL in 2014, currently and LLB. He was admitted as an Advocate in appointed as Whip of the DA. Hon McGluwa 2002 and currently a practising member of furthered his tertiary education through the National Bar Council of South Africa. Hon WITS and obtained a Graduate Certificate in Advanced Governance and Public Leadership; Babuseng continued his studies at WITS and a CEP Certificate at UJ where he qualified to obtained a Graduate Certificate in Advanced articulate to a Postgraduate Diploma in Public Governance and Public Leadership and is Policy and African Studies. currently completing a Postgraduate Diploma.

Hon Ismail Obaray Hon Safieya H Stanfley MPL - DA MPL - DA

Hon Obaray served as a local and district Hon Stanfley was sworn-in as MPL in 2014 and Councilor since 2006 in the JTG Municipality. currently serves on the Portfolio Committee on He was sworn-in MPL in 2009 and appointed Education, Sport, Arts and Culture, Standing as Leader of the ID and then a DA MPL in 2014. He currently serves as a member of Committee on Gender, Women, Children and the Portfolio Committee on Agriculture, Persons with Disabilities and sub-committee on Land Reform, Rural Development, Internal Arrangements. Hon Stanfley furthered Environment & Conservation. Hon Obaray her tertiary education at UOFS where she studied through UNISA and WITS obtaining obtained a BED HONS in Education Management a Certificate in Governance and Leadership, in 2006. She continued her studies at WITS Graduate Certificate in Advance Governance where she obtained a Certificate in Advanced & Public Leadership and a Postgraduate Governance and Public Leadership and is Diploma in Management. currently completing a Postgraduate Diploma.

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Hon Isak C C Fritz Hon Melinda Hattingh MPL - DA MPL - DA

Hon Fritz was sworn-in as MPL in 2014 Hon Hattingh was employed as Executive Secretary in the office of the DA until 2005. and currently serves as Member on She served as PR Councilor in the Frances the Portfolio Committee on Health & Baard District Municipality from 2006-2011and Social Development. A Counselor by subsequently sworn-in as MPL in 2016. She profession, Hon Fritz completed his currently serves as a member on the Portfolio schooling at Calvinia High School and Committee on Safety, Transport & Public Works furthered his tertiary education at the and Standing Committee on Constitutional Trinity International Bible School where Affairs, Petitions & Public Participation. Hon he obtained his Doctor of Ministry in Hattingh furthered her tertiary education at Counseling and Doctorate of Theology Cape Town University of Technology where in 2008 and 2013 respectively. Hon Fritz she obtained a National Diploma in Food was in the field of business prior to his Technology in 1989. She attended various other election in 2014. courses between 1999 and 2013.

Hon Nevie A Baartman Hon Shadrack L Tlhaole MPL - EFF MPL - EFF EFF Leader EFF Whip

Hon Baartman was sworn-in as MPL in Hon Tlhaole was sworn-in as a Member 2014 and appointed as Leader of the EFF. at NA in February 2017 and later as MPL He currently serves as a Member on various in November 2017. He was subsequently Portfolio, Standing & Sub-Committees. He appointed as Whip and currently serves on furthered his tertiary education through the various Portfolio and Standing Committees. Stellenbosch University where he obtained Hon Tlhaole furthered his tertiary education various certificates as part of a Municipal through Kathu College and UNISA where Competence Programme in 2013. Hon he obtained a qualification in Marketing Baartman further obtained a Certificate in Management. He was previously appointed Advanced Governance and Public Leadership as Community Liaison Officer in 2005 and through WITS and a CEP Certificate through later a Youth Development Officer in 2007 – UJ where he qualified to articulate to a Joe Morolong. He then served as Chairperson Postgraduate Diploma in Public Policy and of the National Youth Development Agency African Studies. between 2010 and 2013.

Hon Oneas P Dikgetsi MPL - COPE COPE Leader

Hon Dikgetsi was sworn-in as MPL in 1994 and subsequently appointed as Member of the Executive Council representing the ANC. He was again sworn-in as Member of the Legislature in 2009 and is currently the Leader of the Congress of the People. Hon Dikgetsi serves on all Portfolio, Standing and Sub-Committees. Hon Dikgetsi furthered his tertiary education at UOFS where he obtained his Masters Degree in Governance and Political Transformation in 2002.

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NCPL Executive Management

Mr PB Moopelwa Adv H Botha Executive Manager Legal, Secretary to the Legislature NCOP & Proceedings & Office: Hansard Services PA: Ms E Fransman Office: ES: Mrs M Mabija Tel: 053 839 8014 Tel: 053 839 8020 Fax: 053 839 8094 Fax: 053 839 8094 E-mail: [email protected] E-mail: [email protected]

Mr GR Botha Mr E Matolweni

Chief Financial Officer Head of Staff

Office: Office:

ES: Ms P Leboa ES: Mr T Mmereki

Tel: 053 839 8016 Tel: 053 839 8011

Fax: 053 839 80940 Fax: 053 839 8094

E-mail: [email protected] E-mail: [email protected]

Mrs NH Borchard Mr NG Siyo Executive Manager (Act.): Executive Manager (Act.): Comittees, Research & Corporate Services Information Services, Public Education and Communication Office: Office: ES: Ms C Coetzer ES: Ms N Neels Tel: 053 839 8018 Tel: 053 839 8024 Fax: 053 839 8094 Fax: 053 839 8094 E-mail: [email protected] E-mail: [email protected]

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NCPL Media, Liaison and Communications Team

Mrs Mpho Masina Mrs C Gopane Media Liaison Officer Manager Public Education & Contact details: Communications Tel: 053 839 8011 Contact details: Fax: 053 839 8094 Tel: 053 839 8090 E-mail:[email protected] Fax: 053 839 8094 E-mail: [email protected]

John Taolo Gaetsewe Regional Office Namakwa Regional Office Contact details: Contact details: Chamakor Sanlam Building, Kuruman, 8460 2 Andia Center, Voortrekker Street, T +27 53 712 3354 Springbok,8240 F +27 53 712 3538 T +27 27 712 3050 C +27 83 396 3602 F +27 27 712 3049 Email: [email protected] C +27 83 396 6005 Email: [email protected]

Francis Baard Regional Office Pixley ka Seme Regional Office Contact details: Contact details: Nobengula Extension, Legislature Building, 43 Kerk Street, De Aar, 7000 Foyer, Kimberley T +27 53 631 0100 T +27 53 839 8090 F + 27 53 631 0100 F +27 53 839 8094 C +27 78 803 6062 C +27 78 803 6046 Email: [email protected] Email: [email protected]

ZF Mgcawu Regional Office Contact details: Ancorley Building Hill Street, 1st Floor, Upington 8800 T +27 54 331 1141 F+27 54 331 1102 C+27 78 803 6065 Email: [email protected]

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LIST OF ABBREVIATIONS

AG Auditor General AO Accounting Officer ANC African National Congress APP Annual Performance Plan AR Annual Report ATC Announcements, Tablings and Committee Reports CFO Chief Financial Officer COPE Congress of the People DA Democratic Alliance EE Employment Equity EFF Economic Freedom Fighters ERP system Enterprise Resource Planning system FMPPLA Financial Management of Parliament and Provincial Legislatures Act HR Human Resources HRD Human Resources Development HRM Human Resources Management MDG Millennium Development Goals M&E Monitoring and Evaluation MEC Member of the Executive Council MPL Member of the Provincial Legislature MTEF Medium Term Expenditure Framework NDP National Development Plan NEHAWU National Health and Allied Workers Union NCOP National Council of Provinces NCPL Northern Cape Provincial Legislature NCPPF Northern Cape Political Party Fund NKP National Key Point NT National Treasury OD Organisational Development PC Portfolio Committee PFMA Public Finance Management Act QR Quarterly Report SC Standing Committee SCM Supply Chain Management

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LIST OF ABBREVIATIONS Contents SUBMISSION OF THE ANNUAL REPORT TO THE SPEAKER: ...... ii OFFICE BEARERS ...... iv LIST OF ABBREVIATIONS ...... x

PART A: GENERAL INFORMATION ...... 1 FORWORD BY THE SPEAKER...... 2 STATEMENT BY THE DEPUTY SPEAKER...... 4 REPORT OF THE ACCOUNTING OFFICER...... 6 1.1 OVERVIEW OF THE FINANCIAL RESULTS OF THE LEGISLATURE...... 8 1.1.1 DEPARTMENTAL RECEIPTS...... 8 1.1.2 PROGRAMME EXPENDITURE ...... 9 STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF THE ACCURACY OF THE ANNUAL REPORT ...... 10 2.1 VISION ...... 11 2.2 MISSION ...... 11 2.3 MOTTO ...... 11 2.4 VALUES ...... 11 3. LEGISLATIVE AND OTHER MANDATES ...... 11 3.1. The Northern Cape Provincial Legislature derives its mandate from the following Legislation: ...... 11 3.2. Constitution of the Republic South Africa...... 12 3.3. Rules, Codes and Manuals of the Northern Cape Provincial Legislature:...... 12 3.4. New policy mandates: ...... 12 3.5. Relevant court rulings: ...... 12 3.6. Planned policy initiatives: ...... 13 4. ORGANISATIONAL STRUCTURE ...... 14 5. ENTITIES REPORTING TO THE SPEAKER ...... 14

PART B: PERFORMANCE INFORMATION ...... 15 1. OVERVIEW OF LEGISLATURE PERFORMANCE ...... 16 2. STRATEGIC OUTCOME ORIENTED GOALS...... 20 3. PERFORMANCE INFORMATION BY PROGRAMME...... 21

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PART C: CORPORATE GOVERNANCE ...... 42 1. INTRODUCTION ...... 43 2. RISK MANAGEMENT...... 43 3. CONFLICT OF INTEREST ...... 44 4. CODE OF CONDUCT ...... 44 5. HEALTH SAFETY AND ENVIRONMENTAL ISSUES ...... 44 6. OVERSIGHT COMMITTEES...... 45 7. SCOPA RESOLUTIONS ...... 45 8. INTERNAL AUDIT REPORT ...... 47 9. AUDIT COMMITTEE REPORT ...... 59

PART D: HUMAN RESOURCE MANAGEMENT ...... 62 1. INTRODUCTION ...... 63 2. OVERVIEW OF HUMAN CAPITAL ...... 63 3. HUMAN RESOURCES OVERSIGHT STATISTICS ...... 66

PART E: FINANCIAL INFORMATION...... 94 Report of the auditor-general to the Northern Cape Provincial Legislature ...... 95 Annual Financial Statements for the year ended 31 March 2018...... 101

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GENERALPART A INFORMATION

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FORWARD BY THE SPEAKER

Hon. MK Mmoiemang- SPEAKER

I have the honour of submitting the Annual Report of the Northern Cape Provincial Legislature for the period 1 April 2017 to 31 March 2018.

I am particularly proud to be presenting this Annual Report, during a year of jubilation and honour, as we mark the centenary celebrations of our former President, Nelson Mandela and struggle heroine, Mama Albertina Sisulu.

We strive to integrate the humanitarian spirit of our forebears in the decisions that we collectively, with the ultimate purpose of making a significant impact to the lives of the People of the Northern Cape.

This annual report, which is guided by our five-year strategic plan gives a full account of our achievements and some challenges for the year under review.

The Strategic Plan adopted at the beginning of the 5th term was guided by the Constitution, the national policy imperatives as enunciated in the National Development Plan (NDP) and the Medium Term Strategic Framework (MTSF).

Key developments that were evident in the 5th Legislature included:

I. Re-shaping of the Legislature’s organizational structure in alignment with the new Strategic Plan of the institution.

II. Customization of the Sector Oversight Model (SOM) and increasing the roll-out in committees.

III. Establishment of the Public Participation Framework in order to streamline and continuously improve Public Participation broadly.

IV. Implementation of key provisions of the Financial Management of Parliament and Provincial Legislature Act (FMPPLA).

V. Financial prudence and upholding sound corporative governance.

The overall institutional performance has without hesitation moved in an upward trajectory towards achieving the set goals and objectives in line with our institutional priorities, despite the audit regression in the 2017/18 financial year.

We firmly believe that we have been able to discharge our constitutional obligations thoroughly, and thus the onus is on us as legislators supported by a committed workforce, ensuring that plans of government not only look brilliant on paper, but are implemented as planned.

Noting that this is the final annual report for this 5th legislative term; as we move towards the 6th legislative term, a report documenting the progress achieved and recommendations will be prepared for handover to the Speakership of the 6th term. This will aid a smooth transition that highlights areas that need immediate

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FORWARD BY THE SPEAKER

Hon. MK Mmoiemang- SPEAKER

attention, along with capacity building for incoming Members in 2019.

It is our ongoing task to drive and accelerate progress towards the advancement of a national democratic society; to deepen democracy and translate political emancipation into economic inclusion and well-being for all our people. Our primary role in the legislative sector is to indeed ensure that “the people shall govern”, as anticipated by the Freedom Charter.

The Northern Cape Provincial Legislature will continue to strive to be the voice of our people and fulfil their aspirations, as an activist Legislature and maintain to be a ‘’Home for All’’ to our people in the Northern Cape Province. We shall remain, “Vigilant, Always for our People!”

I wish to extend great appreciation to the Deputy Speaker, Ms Juanita Beukes for her unreserved support at all times, all Members of the Legislature for their immense commitment, and the support of our capable political office and administration.

______Hon. M Mmoiemang SPEAKER TO THE NORTHERN CAPE PROVINCIAL LEGISLATURE

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STATEMENT BY THE DEPUTY SPEAKER

The 2017/18 financial year was the penultimate year of this 5th Legislature. It, however also marks the last annual report of the 5th Legislature. The 2018/19 annual report will be the first report of the new Legislature.

This year represented another opportunity to serve the People of the Northern Cape as we executed our Constitutional mandates of Oversight over the Executive, Law making and Public Involvement if the law making process. It remains a privilege to serve our communities.

As we enter the last year of this term, we remain committed to executing our responsibilities in honour of our Icon tata-Nelson Mandela as well as Mama- Albertina Sisulu – both whose centenary we are celebrating this year. Our foundation has indeed been laid by people of their calibre.

The Northern Cape Provincial Legislature embarked on a path of “renewal” since the inception year of this term. This renewal was brought about by the Strategic Plan which was crafted by the Political and Administrative arm of the Legislature; working in unison and setting common goals and objectives. This renewal was further strengthened with an organisational re-design aimed at aligning functions towards attaining the strategic Objectives.

We have surely come a long way since 2014/15 and this is evident when taking a look at where the Legislature is in 2018. The introduction of the Finance Management of Parliament and Provincial Legislatures Act, 2009 (Act. No 10 of 2009) brought about a new way of accounting in the entire Legislative sector. It clearly provided for the operationalisation of the separation of power doctrine; where the sector accounts on rules guiding it.

The need for public involvement in the law making process can never be overstated in a thriving Democracy. As a People’s Legislature, we remained focussed on this imperative when dealing with legislation affecting our People. To this end, we continuously strived to have public hearings in all districts of the Northern Cape thus providing our communities the opportunity to influence legislation which affects them.

We furthermore also continued our rotational House Sittings which are aimed; at not only educating our communities about the proceedings of the House; but also providing a platform where the Legislature can engage our communities and similarly get first-hand view of the development work being done by the Executive.

Oversight over the Executive remains a critical imperative to the Legislature; this being done through the various committees of the Legislature. Committees engaged various reports of the executive which included amongst others, the Annual performance Plan (APP’s), Quarterly Reports as an in year monitoring interventions and annual reports which ultimately serves as an account of the activities done against what was planned during a specific year.

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STATEMENT BY THE DEPUTY SPEAKER

I wish to thank the Speaker, for his unwavering guidance and leadership during this year. Your constant calmness always restores a sense of calm and soberness even when faced with daunting challenges. It has been my honour to work with a Speaker of great vision and intellect throughout this term.

The work of this Legislature would not be possible without a committed Administration; under the leadership of the Secretary, Mr Patrick Moopelwa. Whilst we did not maintain our audit performance of 2016 and 2017, we know that the administration gives its best within the limited resources we have. It has been a privilege working with each and every person during this term and I am sure that the incoming 6th Legislature with work well with this administration

All these efforts are in pursuit of a Better Life for ALL our People of the Northern Cape; and in this pursuit we will remain Vigilant at all times. The Northern Cape Provincial Legislature will continue to serve the people of the Northern Cape by building a developmental institution for effective law making, public participation, accountability and oversight over the executive and municipalities”.

______

JT Beukes DEPUTY SPEAKER: NORTHERN CAPE PROVINCIAL LEGISLATURE

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REPORT OF THE ACCOUNTING OFFICER

Mr PB Moopelwa- SECRETARY TO THE LEGISLATURE

Section 55 of the Financial Management of Parliament and Provincial Legislature Act (Act No 10 of 2009) imposes upon the Accounting Officer of the Legislature, a definitive responsibility to prepare an Annual Report for each financial year. In line with the act, this annual report provides a substantial record of activities that are carried by both components of the Legislature, being the Administration and Political component of the institution. The report also incorporates the Annual

Financial Statements of the Legislature for the financial year ended 31 March 2018. Through a full discloser of the institution’s budget expenditure and all financial materials, we aim to promote accountability for all decisions made in this financial year and the medium term as envisaged by the act.

The 2017/2018 financial year brought closer, the end of the Firth Legislature’s Term that commenced in 2014 and coming to an end in 2019. At the beginning of the term, the Northern Cape Provincial Legislature documented its ambition, vision and mission as a crucial arm of state in advancing participatory democracy amongst other things. In fostering its implementation, the adopted five year strategic plan has since been cascaded into Annual Performance Plans for each financial year. All of this APPs detailed clear and measurable programmes performance targets that are closely linked with the institution’s budget. It is against this background that the financial year under review proved to be the most challenging of the term given the desire to meet performance targets and equally attend to the unforeseen and very costly incidents that overtook the plans set and the funds budgeted.

The Legislature procured and introduced the use of ERP System to assist in generating and keeping accounting records. This was geared towards enabling the institution to migrate from the cash basis of accounting to the accrual basis of accounting in line with Generally Recognised Accounting Practice (GRAP) when preparing the set of Annual Financial Statements (AFS). Introduction of the system brought with a massive shift in our operations and ultimately presented both exciting and challenging moments. NCPL become one of the top three Legislatures in the country to introduce this system. On the same note, change management particularly in our Human Capital and Finance, was fairly tough and required plans to mitigate such gaps through trainings, additional services and extensions of the turnaround times throughout implementation phases.

The Auditor-General undertake a reasonable assurance engagement on the reported performance information for the selected programmes presented in the annual performance reports of the Northern Cape Provincial Legislature for the financial years stated on an annual basis. It is pleasing to report that for the past three financial years, the Auditor-General have expressed an unqualified audit opinion (clean audit) on the performance information of the Legislature. Sadly though, as the institution, we could not maintain the clean audit opinion of the past two financial years. In 2017/2018 financial year, AG issued an audit opinion of regression from unqualified to unqualified with one finding. This was largely due to the material adjustment in the financial statements that were made wherein the R2mil of the Members Study tour which was incorrectly accounted for as receivables instead of expenditure however the correction was effected.

The Parliamentary Business sub-programme of the institution incorporates the Legal Service, NCOP and the House Proceedings. Through consistent provision the legal opinions and summaries of legislations, the Legal Services continues to ensure that the Members, management and all the employees of the institution operates within the legal prescripts and uphold the laws of the country. On the other hand, the NCOP section

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REPORT OF THE ACCOUNTING OFFICER

Mr PB Moopelwa- SECRETARY TO THE LEGISLATURE

is our administrative interface between the Legislature and the National Council of Provinces as per required by the constitution of the country, particularly when dealing constitution’s section 76 bills. It is important to note that through this operational arrangement, the Legislature ascertain that the opinions and interests of the citizens of the province are represented in all national matters.

The NCPL oversight model is the overarching strategy that drives oversight processes. This model started at the inception of the five year strategic plan wherein the institution adopted an phase by phase approach to implement the Sector Oversight Model (SOM). The model started with contracting with only five (5) departments and from 2016/2017 financial year, implementation of SOM was rolled-out to all thirteen (13) departments. Linked to the oversight role played by Members of the Legislature, is the capacity building of the MPLs. The Legislature under the banner of the Speakers Forum offers training and development opportunities to Members of Provincial Legislature. The overall purpose of the programmes is to enhance the performance of Legislators to execute their constitutional responsibilities through a professional development programme anchored in the core functions of the Legislature and the role and responsibilities of Members whilst providing access to academic opportunities to ensure employability following Members political career.

In December 2016, the NCPL Precinct Rehabilitation project commenced with a project plan to last for twelve months. The unfortunate and completely unforeseen delays in the project has now extended to over eighteen (18) months to date. Even though the project is well above 80% complete, the fact that the institutions cannot operate from its building presents both operational strains with massive financial burdens that were never planned for. At this stage, the Legislature has managed to dip into its savings in order to afford the external lease rentals and all other associated costs. This methods evidently are not sustainable hence we have invested all efforts in ensuring that the project in completed before the end of October 2018 and Legislature’s operations returns to the precinct.

Despite all these challenges, as the institution we have remained focused and dedicated towards execution of sector’s constitutional mandate. The Legislature strongly stands to live up to its motto being “Vigilant always for our people” through the planned public hearings held during the year under review, external house sittings and oversight visits. These remains very important performance areas for the institution which are demonstrative of public involvement in the law making processes, oversight on the executive at the same time empowering the constituencies with information sharing. NCPL pride itself of being “An activist Legislature in advancing the aspirations of the people of the Northern Cape” hence our operations prioritise means that enable that all new law(s) passed by parliament does reflects the views and aspirations of the Northern Cape.

______PB Moopelwa SECRETARY TO THE LEGISLATURE NORTHERN CAPE PROVINCIAL LEGISLATURE

7 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

1.1 OVERVIEW OF THE FINANCIAL RESULTS OF THE LEGISLATURE 1.1.2 PROGRAMME EXPENDITURE Analysis of the 2017/18 financial year 1.1.1 DEPARTMENTAL RECEIPTS Expenditure Budget Variance R'000 R'000 R'000 2017/2018 2016/2017 Available % Exp on Programmes Expenditure Budget Budget Budget Estimate Actual (Over)/Under Estimate Actual (Over)/Under Administration 79 895 87 097 7 202 92 Members Facilities 55 136 54 722 -414 101 Collection Collection Departmental receipts Amount Amount Parliamentary Services 42 692 49 285 6 593 87 Statutory Amounts 24 568 25 367 799 97 Collected Collected 202 291 216 471 14 180 93

R’000 R’000 R’000 R’000 R’000 R’000  NCPL spent 93 % of its allocated budget for 2017/18 Financial year Sale of goods and 90 105 15 2 611 64 2 547  Underspending of R14.1 million is mainly due to the CAPEX (71%) and COE (21%) services other than capital assets  R12.1 million has been committed as funds to be appropriated in 2018/19 (Similar to roll over).

Interest, dividends and 2 105 1 733 (372) 195 2 797 (2 602)  R 2.0 million could be classified as saving, which is less than 1% of the allocation rent on land

Sale of capital assets ------

Financial transactions 1 184 47 1137 - 44 (44)

in assets and liabilities

Total 3 379 1 885 780 2 806 2 905 (99)

In terms of Section 22 (1) (a) of the Public Finance Management Act (Act 1 of 1999) (PFMA), revenue collected by the Provincial Legislature is excluded from the Provincial Revenue Fund. Section 22(5) of the PFMA further directs that money received by a Provincial Legislature must be paid into an account opened by the legislature.

APPROVAL AND SIGN OFF

______PB Moopelwa SECRETARY TO THE LEGISLATURE DATE: 31 MAY 2018

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8 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

1.1 OVERVIEW OF THE FINANCIAL RESULTS OF THE LEGISLATURE 1.1.2 PROGRAMME EXPENDITURE AnalysisAnalysis of the of2017/18 the 2017/18 financial financial year year Expenditure Budget Variance % Exp on 1.1.1 DEPARTMENTAL RECEIPTS Expenditure Budget Variance R’000 R’000R'000 R'000R’000 R'000Budget 2017/2018 2016/2017 Expenditure Budget Available Available % Exp on Programmes Expenditure BudgetBudget Budget Budget Administration 79 895 87 097 7 202 92 Estimate Actual (Over)/Under Estimate Actual (Over)/Under Administration 79 895 87 097 7 202 92 Members FacilitiesFacilities 57 420 55 13658 223 54 722 803 -414 99 101 Collection Collection Parliamentary Services 42 692 45 784 3 092 93 Departmental receipts Amount Amount Parliamentary Services 42 692 49 285 6 593 87 Statutory Amounts Amounts 24 568 24 56825 367 25 367 799 799 97 97 Collected Collected 204 575 202 291216 471 216 47111 896 14 180 95 93

R’000 R’000 R’000 R’000 R’000 R’000  NCPL spent 93 % of its allocated budget for 2017/18 Financial year Sale of goods and 90 105 15 2 611 64 2 547 • UnderspendingNCPL spent 95 of % R14.1 of its allocatedmillion is mainlybudget due for 2017/18to the CAPEX Financial (71%) year. and COE (21%) services other than • Underspending of R11.9 million is mainly due to the Capital Expenditure and Compensation of capital assets  R12.1 million has been committed as funds to be appropriated in 2018/19 (Similar to roll over). Employees. Interest, dividends and 2 105 1 733 (372) 195 2 797 (2 602)  • RR12.1 2.0 million million could has beenbe classified committed as sa asving, funds which to be is appropriated less than 1% in of 2018/19 the allocation (Similar to roll over). rent on land

Sale of capital assets ------

Financial transactions 1 184 47 1137 - 44 (44) in assets and liabilities

Total 3 379 1 885 780 2 806 2 905 (99)

APPROVAL AND SIGN OFF

______PB Moopelwa SECRETARY TO THE LEGISLATURE DATE: 31 MAY 2018

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9 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF THE ACCURACY OF THE ANNUAL 2. STRATEGIC OVERVIEW REPORT 2.1 VISION An activist Legislature advancing the aspirations of the people of the Northern Cape To the best of my knowledge and belief, I confirm the following: 2.2 MISSION All information and amounts disclosed throughout the annual report are consistent. To serve people of the Northern Cape by building a developmental institution for effective law

The annual report is complete, accurate and is free from any omissions. making, public participation, accountability and oversight over the executive and municipalities

The Annual Financial Statements (Part E) have been prepared in accordance with GRAP and the applicable frameworks and guidelines. 2.3 MOTTO

“Vigilant always for our people” The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information. 2.4 VALUES

Value Value definition The Accounting Officer is responsible for establishing, and implementing a system of internal control that Selflessness We are people-centred in all our intentions and actions has been designed to provide reasonable assurance as to the integrity and reliability of the performance Integrity We are truthful, ethical, open, honest and transparent in all we do information, the human resources information and the annual financial statements. Accountability We are responsible, reliable and answerable for our actions

Professionalism Consistent service excellence in performance delivery and execution of our The external auditors are engaged to express an independent opinion on the annual financial statements. mandate/ roles both of support and oversight

Transparency We are always open to scrutiny In my opinion, the annual report fairly reflects the operations, the performance information, the human Responsiveness We value our stakeholders and are considerate, caring and timely resources information and the financial affairs of the Northern Cape Provincial Legislature for the financial Innovation We promote and embrace change and new ideas year ended 31 March 2018.

3. LEGISLATIVE AND OTHER MANDATES Yours faithfully 3.1. The Northern Cape Provincial Legislature derives its mandate from the following Legislation:

a) The Constitution of the Republic of South Africa;

b) Northern Cape Provincial Legislature Service Act, No.2 of 2011; ______c) Powers, Privileges and Immunities of Parliaments and Provincial Legislatures Act, No.4 of 2004; PB Moopelwa d) Northern Cape Petitions Act, No. 8 of 2009; SECRETARY TO THE LEGISLATURE e) Northern Cape Party Political Fund Act, No 7 of 2009; Date: 31 May 2018 f) Northern Cape Legislature Witness Act, No 3 of 2013.

g) Financial Management of Parliament Act, No 10 of 2009 as amended by Act 34 of 2014.

h) Labour Relations Act, No. 66 of 1995 and other related labour legislation;

i) Remuneration of Public Office Bearers Act, No. 92 of 1997;

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10 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

The annual report is complete, accurate and is free from any omissions. making, public participation, accountability and oversight over the executive and municipalities

The Annual Financial Statements (Part E) have been prepared in accordance with GRAP and the applicable frameworks and guidelines. 2.3 MOTTO

“Vigilant always for our people” The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information. 2.4 VALUES

3. LEGISLATIVE AND OTHER MANDATES Yours faithfully 3.1. The Northern Cape Provincial Legislature derives its mandate from the following Legislation:

a) The Constitution of the Republic of South Africa;

g) Financial Management of Parliament Act, No 10 of 2009 as amended by Act 34 of 2014.

h) Labour Relations Act, No. 66 of 1995 and other related labour legislation;

i) Remuneration of Public Office Bearers Act, No. 92 of 1997;

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11 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

3.2. Constitution of the Republic of South Africa 3.6. Planned policy initiatives: The Constitution of the Republic of South Africa - 1996, Chapter 6 section 114 (1) and (2) which states The Speakers Forum has resolved to strengthen and formalize cooperation of Legislatures through legal that: mechanism, namely the Legislative Sector Bill. The Bill also reaffirms the establishment of the National In exercising its legislative power, a Provincial Legislature may- Bargaining Forum/Council to establish centralized bargaining and regulate labor relations amongst a) Consider, pass, amend or reject any Bill before the Legislature; and Sector employees. The need for the project started in the previous terms of Legislatures as a result of b) Initiate or prepare legislation, except a money Bill. disparities in the conditions of service and benefits of employees in the Sector. Consultation with A Provincial Legislature must provide for mechanisms- stakeholders including all unions and employees in general was conducted. a) To ensure that all Provincial Executive organs of State in the province are accountable to it; The progress report on Collective Bargaining for the Legislative Sector was tabled for consideration by b) To maintain oversight over- the Speakers’ Forum. It was submitted to the SF that the sector may proceed with the project being i. The exercise of Provincial Executive Authority of the Province, including the cautious of the fact that more work will still need to be done. This will inter alia have to determine the implementation of Legislation; and extent of challenges on bargaining, identification of key principles and values that should guide ii. Any Provincial Organ of State. harmonization in the sector as well as exploring the administrative and political implications of the Section 118(1) and (2) mandates the legislature to ensure public access to and involvement in all collective bargaining. processes of the legislature. In various forums, the Legislative Sector continues to reiterate the challenges relating to budgets and 3.3. Rules, Codes and Manuals of the Northern Cape Provincial Legislature: consultative processes with Provincial Treasuries. The Speakers Forum at a national level then resolved The Legislature also abides by the following: that a protocol document to guide the relationship and protocols on budget processes for the Sector be a) Standing Rules; developed. Further to this, the work to produce a draft proposal by Parliament on the amendment of the b) Code for Financial Administration; FMPPLA is underway in order to respond to the budget process of the sector as a whole. Amongst the c) Northern Cape Provincial Legislature: Performance Information Policy 2016; and proposed amendments are the incorporation of the sector budget process of the sector. The approach of d) Policies of the Legislature. planning and budgeting will have key stages which will include Planning and Budgeting by Legislatures, SALSA Lekgotla, Speakers’ Forum Lekgotla, and Meeting between the Head of State and the Parliament 3.4. New policy mandates: Executive Authority. To this effect, it is resolved that the Sector Budget Lekgotla will proceed in June Supply Chain Management regulations promulgated in terms of the Financial Management of Parliament 2018. and Provincial Legislatures Act, Act No 10 of 2009.

3.5. Relevant court rulings: a) Poverty Alleviation Network and Others v President of the Republic of South Africa and Others. CCT/86/08 - Decided 24 February 2010; b) Doctors for Life International v The Speaker of the National Assembly and Others. CCT/12/05 – Decided 17 August 2006; and c) Land Access Movement of South Africa v The Chairperson of the National Council of Provinces and Others. CCT/40/15 – Decided 27 July 2016

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12 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

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13 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

4. ORGANISATIONAL STRUCTURE The NCPL concluded a work-study and institutional skills audit during the 2015/16 financial year. The work-study has resulted in a new organisational structure that was implemented with effect from 01 February 2016. Below is the approved organizational structure at macro level.

5. ENTITIES REPORTING TO THE SPEAKER

The table below indicates the entities that report to the Speaker of the Legislature. Name of Entity Legislative Mandate Financial Relationship Nature of Operations Northern Cape Political Northern Cape Political Dependent on transfers Political Party Fund Party Fund Party Fund Act no. 7 of from the NCPL funding political party 2009. operations at the NCPL.

14 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

PERFORMANCEPART B INFORMATION

5. ENTITIES REPORTING TO THE SPEAKER

15 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

level, and that this relationship is based on the constitutional status of the Provincial Legislature. The Legislative Sector in the 5th term have invested immensely in defining and shaping the critical role to be played by the sector in enhancing the maturity of our country’s democracy. b) Migration from the cash basis of accounting to the accrual basis of accounting in line This is carried through to the 6th term of Parliament and Legislatures as strong foundation and with Generally Recognised Accounting Practice (GRAP) when preparing the set of legacy to build from. The Northern Cape Provincial Legislature has equally positioned itself as Annual Financial Statements (AFS). That resulted in the Legislature purchasing an resilient partner and advocate for vibrant democracy, accountable and transparent ERP System to assist in generating and keeping accounting records. government as well as people centred Legislature. c) Abandoning of the SITA provided Transversal systems- BAS, LOGIS and PERSAL and geared towards the Modified Cash Accounting.

These and many other developments of the year under review has characterised the 1.2. Performance environment operations and systematic changes in the entire work of the Legislature. It is for this reason that Management of the Legislature took deliberate actions pursuant to implementing and The nature of the Northern Cape Provincial Legislature is that the institution is made-up of two entrenching the principles and practical terms of FMPPLA. This act compels management to main components. The political component which is led by the Speaker of the Legislature is put in place regulations that will ensure that the Legislature’s resources are used effectively, the outward looking component. On the other hand, the Administrative component which is efficiently, economically and transparently. Part of the key measures that are in line with this led by the Secretary to the Legislature exists mainly to operationalise the parliamentary and obligation is the cost containment measures and optimal prioritization of the institutional law making business of the Legislature. Through the establishment of key governance budget at all times. structures such as the Audit Committee, a significant level of oversight is executed on the Legislature. The end of 2017/2018 financial year marks the fourth year towards the end of the five year term of the current Legislature’s term. The current term began with adoption of the NCPL Strategic Plan which provided a strategic direction that the institution must take. Over this The mandate of the Northern Cape Provincial Legislature is drawn from the Constitution of the period, with the usage of limited resources, the Legislature is continuing to implement the Republic and vests upon the Legislature the roles of law making, oversight on the executive aspirations of both the Constitution and the Strategic Plan. The Legislature has shaped its as well as facilitation of the public participation. The ultimate objective of the institution remains operations to become those of an active democracy and people centred law-making institution. the representation of the people of the Northern Cape and ensuring “government by the

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16 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

1. OVERVIEW OF LEGISLATURE PERFORMANCE The NCPL Sector Oversight Model was developed and customised to enable a favourable environment when exercising the oversight on the provincial departments. Service Delivery Environment It is appropriate to report that the Northern Cape Provincial Legislature has progressed 1.2 Situational analysis towards alignment with the rest of the Legislative Sector in the country. This meant that the legislature had to cooperate and actively participate in all sector platforms. One of the areas that the institution actively participated in was the processes which are intended to strengthen The full implementation of the Financial Management of Parliament and Provincial Legislature and formalize cooperation of Legislatures through legal mechanism such as the Legislative Act (FMPPLA) has brought a paradigm shift in how the Northern Cape Provincial Legislature Sector Bill. This Bill also reaffirms the establishment of the National Bargaining Forum/Council conducts its business. The act imposed a complete change in the following minimum critical to establish centralized bargaining and regulate labor relations amongst Sector employees. areas: The need for the project started in the previous terms of Legislatures as a result of disparities a) The Budget Consultation between the Speaker and MEC of Finance compared to the in the conditions of service and benefits of employees in the Sector. Consultation with previous PMTEC process that was is not in line with the requirements of the stakeholders including all unions and employees in general was conducted and equally FAMPPLA. The act make provisions to ensure that there must be a prior consultative extended to employees of the NCPL in this financial year. relationship between the Provincial Legislature and the Provincial Treasury at a high level, and that this relationship is based on the constitutional status of the Provincial Legislature. The Legislative Sector in the 5th term have invested immensely in defining and shaping the critical role to be played by the sector in enhancing the maturity of our country’s democracy. b) Migration from the cash basis of accounting to the accrual basis of accounting in line This is carried through to the 6th term of Parliament and Legislatures as strong foundation and with Generally Recognised Accounting Practice (GRAP) when preparing the set of legacy to build from. The Northern Cape Provincial Legislature has equally positioned itself as Annual Financial Statements (AFS). That resulted in the Legislature purchasing an resilient partner and advocate for vibrant democracy, accountable and transparent ERP System to assist in generating and keeping accounting records. government as well as people centred Legislature. c) Abandoning of the SITA provided Transversal systems- BAS, LOGIS and PERSAL and geared towards the Modified Cash Accounting.

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17 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

people”. At the centre to the performance of the legislature in executing this constitutional 1.3. Organisational Environment mandate is a commitment to raise the bar from one financial year to the next in terms of the The Northern Cape Provincial Legislature is amongst one of the very smallest Legislature in overall institutional performance. country with a maximum of thirty (30) seats. The seat allocation of the Provincial Legislature is based on proportional representation following every general elections and is done in The Northern Cape Provincial Legislature performed under much challenging yet constructive accordance with the provisions of the Constitution. The Speaker of the Legislature is the circumstances in this financial year. While the institution pushed hard to improve the overall Executive Authority of the Provincial Legislature as contemplated by FMPPLA. The performance, there are some challenges that have stayed with the Legislature ever since the configuration is therefore made up as the Premier of the province, Ten (10) Members of the past throughout, such challenges include- Executive Council and Nineteen (19) Members of the Provincial Legislature (MPLs) inclusive of the Speaker and the Deputy Speaker of the Legislature. I. Budget constraints;

II. Limited capacity in certain critical sections and departments, particularly the core In the year under review, NCPL operated with the three programme performance and budget business. structure which is in accordance with the institution’s Strategic Plan and Annual Performance Plan as adopted by the Legislature previously. This programme structure is synchronized with III. Slow progress on the review and finalisation of institutional policies. organizational structure (organogram) in order to enable the administration and Members of the Legislature to perform optimally in their respective duties. The organizational structure provides an opportunity to function optimally and deliver in its mandate. However, it is Although cost containment measures were not formally introduced this financial year the important to note that due to the limited resources at the disposal of the Legislature, not all Legislature continued to implement cost containment measures. The cost containment positions as contained in the organizational structure could be funded. measures were aimed at achieving greater efficiency in expenditure, reduced waste and

improved spending in the areas of, amongst others, travel and subsistence, consultants, The NCPL adopted an approach of planning the quarterly activities of the institution through catering and entertainment. the Programme Subcommittee chaired by the Deputy Speaker. The subcommittee meets regularly to plan and develop the Legislature’s Programme. This programme directs all The NCPL Precinct rehabilitation project commenced in December 2016 following a activities of the institution, particularly on the political component of the institution. To some competitive bidding process. This project is primarily aimed at repairing structural defects of extend the Legislature’s programme has affected the execution of the institutions performance the Legislature building. Due to the delays in completing the project, the completion of the targets. In an attempt to improve the institutional performance, management will undertake to project fell out of the initial timeframes and it is our intention that the project be completed in influence the formulation of the Legislature’s Programme to ensure that activities contained in the next financial year. Creating a conducive and favourable working environment in the the programme are closely aligned to the performance indicators as planned in the APP. Legislature remains a top priority of both management and the Speaker of the Legislature. As . a result of this, the Legislature has been operating from two external leased buildings. This exercise has placed much strain in the operational efficiency of the Legislature, however, the work of the institution had to continue without being compromised. All efforts are reinforced

and that includes working together with strategic partners such as the Department of Public

Works towards successful completion of this project.

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18 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2 people”. At the centre to the performance of the legislature in executing this constitutional 1.3. Organisational Environment mandate is a commitment to raise the bar from one financial year to the next in terms of the The NorthernNorthern CapeCape ProvincialProvincial Legislature Legislature is is amongst amongst one one of of the the very very smallest smallest Legislature Legislature in overall institutional performance. countryin country with with a maximum a maximum of thirty of (30)thirty seats. (30) Theseats. seat The allocation seat allocationof the Provincial of the Legislature Provincial isLegislature based on is proportionalbased on proportional representation representation following everyfollowing general every elec generaltions electionsand is done and inis The Northern Cape Provincial Legislature performed under much challenging yet constructive accordancedone in accordance with the withprovisions the provisions of the Constitution. of the Constitution. The Speaker The Speaker of the Legislatureof the Legislature is the circumstances in this financial year. While the institution pushed hard to improve the overall Executiveis the Executive Authority Authority of the of theProvincial Provincial Legislature Legislature as ascontemplated contemplated by by FMPPLA.FMPPLA. TheThe configuration is therefore made up as the Premier of the province, Ten (10) Members of the performance, there are some challenges that have stayed with the Legislature ever since the configuration is therefore made up as the Premier of the province, Ten (10) Members of the Executive Council and Nineteen (19) Members of the Provincial Legislature (MPLs) inclusive past throughout, such challenges include- Executive Council and Nineteen (19) Members of the Provincial Legislature (MPLs) inclusive of the Speaker and the Deputy Speaker of the Legislature. of the Speaker and the Deputy Speaker of the Legislature. I. Budget constraints; Further to the setup of the Legislature in line with execution of its mandate, Office of the II. Limited capacity in certain critical sections and departments, particularly the core InChairperson the year under of Committees review, NCPL (OCoC) operated is crucial. with the The three primary programme role of performance this office andis tobudget monitor business. structureand evaluate which the is indischarge accordance of withmandates the institution’s by the respective Strategic PlanHouse and Committees Annual Performance (Portfolio PlanCommittees) as adopted and by to the ensure Legislature strategic previously. management This programmeof Committees structure and Committee is synchronized business, with III. Slow progress on the review and finalisation of institutional policies. organizationalthereby ensuring structure that the (organogram) mandates of thein orderInstitution to enable as a whole the administration is delivered. Thus, and Members it is through of the OCoCLegislature that theto performvery core optimally objectives in oftheir the respectiveinstitution isduties. realized The since organizational the very mandate structure of providesthe Institution an opportunity is given effect to tofunction and executed optimally through and deliverthe House in its Committees, mandate. asHowever, strategically it is Although cost containment measures were not formally introduced this financial year the importantled by the OCoC.to note Inthat so duedoing, to thethe OCoClimited monitors resources the at impact the disposal of Committee of the oversightLegislature, initiatives not all Legislature continued to implement cost containment measures. The cost containment positionsand ensures as contained that Committees in the organizational drive their work structure in line couldwith the be objectivesfunded. and programmes of measures were aimed at achieving greater efficiency in expenditure, reduced waste and the Northern Cape Provincial Legislature (NCPL). improved spending in the areas of, amongst others, travel and subsistence, consultants, The NCPL adopted an approach of planning the quarterly activities of the institution through In the year under review, NCPL operated with the three programme performance and budget catering and entertainment. the Programme Subcommittee chaired by the Deputy Speaker. The subcommittee meets structure which is in accordance with the institution’s Strategic Plan and Annual Performance regularly to plan and develop the Legislature’s Programme. This programme directs all Plan as adopted by the Legislature previously. This programme structure is synchronized with activities of the institution, particularly on the political component of the institution. To some The NCPL Precinct rehabilitation project commenced in December 2016 following a organizational structure (organogram) in order to enable the administration and Members of extend the Legislature’s programme has affected the execution of the institutions performance competitive bidding process. This project is primarily aimed at repairing structural defects of the Legislature to perform optimally in their respective duties. The organizational structure targets. In an attempt to improve the institutional performance, management will undertake to the Legislature building. Due to the delays in completing the project, the completion of the provides an opportunity to function optimally and deliver in its mandate. However, it is important influence the formulation of the Legislature’s Programme to ensure that activities contained in project fell out of the initial timeframes and it is our intention that the project be completed in to note that due to the limited resources at the disposal of the Legislature, not all positions as the next financial year. Creating a conducive and favourable working environment in the thecontained programme in the are organizational closely aligned structure to the could performance be funded. indicators as planned in the APP. Legislature remains a top priority of both management and the Speaker of the Legislature. As .The NCPL adopted an approach of planning the quarterly activities of the institution through a result of this, the Legislature has been operating from two external leased buildings. This the Programme Subcommittee chaired by the Deputy Speaker. The subcommittee meets exercise has placed much strain in the operational efficiency of the Legislature, however, the regularly to plan and develop the Legislature’s Programme. This programme directs all work of the institution had to continue without being compromised. All efforts are reinforced activities of the institution, particularly on the political component of the institution. To some and that includes working together with strategic partners such as the Department of Public extend the Legislature’s programme has affected the execution of the institutions performance Works towards successful completion of this project. targets. In an attempt to improve the institutional performance, management will undertake to influence the formulation of the Legislature’s Programme to ensure that activities contained in

the programme are closely aligned to the performance indicators as planned in the APP.

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19 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

2. Strategic Outcome Oriented Goals 3. PERFORMANCE INFORMATION BY PROGRAMME

The Legislature has three (3) strategic goals that are linked to its strategic objectives and operational activities. Key performance areas are in line with the parliamentary function as set out in Chapter 6 of the Constitution of the Republic of South Africa as well as the administrative support function rendered by the Administration to Legislature 2.1. To strengthen Institutional capacity to render support to Members and Committees to fulfil the officials and Members. Legislature’s Constitutional Mandate The detailed key performance indicators reflect the planned performance of the Northern Cape Provincial To strengthen Institutional capacity to ensure that Members and Committees are appropriately Strategic Goal 1 Legislature Administration, Members Facilities and Parliamentary Services. supported and resourced to fulfil the Legislature’s Constitutional Mandate To ensure the Institution operates optimally by putting in place the necessary governance and The below mentioned programme and sub-programme reflected have been changed due to the implementation of support infrastructure, resources and systems within the next five years. This will be achieved a new structured organisational structure. Goal Statement by way of the establishment of strategies, mechanisms, operational plans and compliance Programme Sub-programme Sub – Sub – Programme guides linked to a budget for all sections, units, departments and divisions within the (Appropriation Level) (Appropriation Level) (Administrative Level) legislature, commencing in April 2015. 1. Administration 1.1. Office of the Speaker 1.1.1 Office of the Speaker

1.1.2 Office of the Deputy Speaker 2.2. To deepen and entrench a people-centred democracy in the Northern Cape 1.1.3 Office of the Chair of Chairs To entrench a people-centred democracy in the Northern Cape through improved public Strategic Goal 2 1.2. Office of the Secretary 1.2.1 Secretary Support education, public participation and communication initiatives. 1.2.2 Strategic Planning & Risk To improve public education and participation in Legislature programmes through the Management establishment of a comprehensive public education and Communication strategic framework Goal Statement 1.2.3 Internal Audit by July 2015; To implement public education, public participation and communication initiatives 1.3. Corporate Services 1.3.1 Executive Manager Support in line with the established strategies over the period April 2015 to March 2020. 1.3.2 Human Capital

1.3.3 Members Affairs 2.3. To ensure that the Legislature optimally carries out its Constitutional Mandate 1.3.4 Security and Records Management Strategic Goal 3 To ensure that the Legislature optimally carries out its Constitutional Mandate of law making 1.4. Financial Management 1.4.1 CFO support and oversight. & ITC 1.4.2 Financial Management Goal Statement To ensure that the Legislature optimally carries out its Constitutional Mandate of law making 1.4.3 Supply Chain Management and oversight through the implementation of the NCPL Standing Rules, the Northern Cape 1.4.4 Information Technology Oversight Model, NCPL committee work cycle and Sector based strategic frameworks on an 2. MPL and Political 2.1. Members Facilities 2.1.1 Members Facilities annual basis commencing in April 2015. Party Support 2.2. Represented Party 2.2.1 Political Parties Support

Support

3. Parliamentary 3.1. Law making & House 3.1.1. Legal Services Services Business 3.1.2. NCOP and Procedings 3.2. Public Participation & 3.1.3. Hansard Services Oversight 3.1.4. Portfolio Committees 3.1.5 Public Education 3.1.6. Research and Information Services

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20 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

2. Strategic Outcome Oriented Goals 3. PERFORMANCE INFORMATION BY PROGRAMME

Support

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21 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

les

3.1. Programme 1: Administration

3.1.1. Purpose: To establish effective Legislature governance structure that will ensure the institution Adjustment

operates optimally. The programme aims to provide effective leadership, financial, human resources, administrative and technological support services and systems to the entire Legislature as well as leading in terms of the strategic management of the administration.

3.1.2. Strategic Objectives 1: Strengthen the governance and oversight structure of the Legislature. Ru four quarter in Also .

Strategic Objective 2: To ensure sound financial management and financial accountability in the Reasons for deviation administration of the Legislature

Strategic Objective 3: was Rules on Committee Standing The three. quarter in cancelled was but arranged was meeting Committee Rules Special A deal to with only quarter this in convened other matters the to due place take not could Committee members. committee other of unavailability no meeting was there three quarter In Finance for MEC and Speaker between instead last meeting was held in second the with deal to quarter Appropriation Adjustment The appropriation. no was There quarter. third in place took meet to as and MEC Speaker the need for quarter. second the in met already they

3.1.3. The main objectives and services of these sub-programmes are as follows: did

 To promote good Governance in the Legislature;

 To coordinate the programmes and functions of Committees of the Legislature;  To provide Strategic Leadership of the Administration; Variance Quarterly Treasury

 To provide sound Financial Management in the Legislature; 2 reports Expenditure by the considered Rules Committee. 2 consultation the with meetings for FinanceMEC not place. take

 To provide Corporate and Security Services support to Members and employees of the Legislature;

3.1.4. Strategic objective Statement: Strengthen the governance and oversight structures of the tion considered considered

s Legislature by ensuring that controls for monitoring financial and non-financial institutional Actual 2017/2018 Quarterly Quarterly Treasury Achievement

performance is in place, by March 2020. 2 Expenditure report the Rules by Committee. 2 consulta the with meetings for FinanceMEC 27

planned target

considered considered

s Actual Performance against 2017/2018 Planned TargetPlanned 4 Quarterly 4 Quarterly Expenditure report the Rules by Committee. 4 Treasury consultation the with meetings for FinanceMEC

Actual 2016/2017 Performance New Indicator New Indicator New

CE OF THE SPEAKER THE OF CE

PROGRAMME: OFFI PROGRAMME: Performance Indicator - Number of Quarterly Expenditure Expenditure of Quarterly Number consultation Treasury Facilitate Programme 1: Administration SUB 1.1 the Rules by considered report Committee. 1.2 Finance for the MEC with meetings

22 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

les

3.1. Programme 1: Administration

3.1.1. Purpose: To establish effective Legislature governance structure that will ensure the institution Adjustment operates optimally. The programme aims to provide effective leadership, financial, human resources, administrative and technological support services and systems to the entire Legislature as well as leading in terms of the strategic management of the administration.

3.1.2. Strategic Objectives 1: Strengthen the governance and oversight structure of the Legislature. Ru four quarter in Also .

Strategic Objective 2: To ensure sound financial management and financial accountability in the Reasons for deviation administration of the Legislature appropriation. The Adjustment Appropriation Appropriation Adjustment The appropriation. Strategic Objective 3: was Rules on Committee Standing The three. quarter in cancelled was but arranged was meeting Committee Rules Special A deal to with only quarter this in convened other matters the to due place take not could Committee members. committee other of unavailability no meeting was there three quarter In Finance for MEC and Speaker between instead last meeting was held in second the with deal to quarter no was There quarter. third in place took meet to as and MEC Speaker the need for quarter. second the in met already they

3.1.3. The main objectives and services of these sub-programmes are as follows: did

 To promote good Governance in the Legislature;

 To coordinate the programmes and functions of Committees of the Legislature;  To provide Strategic Leadership of the Administration; Variance Quarterly Treasury

not take place. not place. take  To provide sound Financial Management in the Legislature; 2 reports Expenditure by the considered Rules Committee. 2 consultation the with meetings for FinanceMEC

 To provide Corporate and Security Services support to Members and employees of the Legislature;

3.1.4. Strategic objective Statement: Strengthen the governance and oversight structures of the tion considered considered

s Legislature by ensuring that controls for monitoring financial and non-financial institutional Actual 2017/2018 Quarterly Quarterly Treasury Achievement performance is in place, by March 2020. 2 Expenditure report 2 consulta the with meetings for FinanceMEC by the Rules the Rules by Committee. 27

planned target

considered considered

s Actual Performance against 2017/2018 Planned TargetPlanned 4 Quarterly 4 Quarterly Expenditure report 4 Treasury consultation the with meetings for FinanceMEC by the Rules the Rules by Committee.

Actual 2016/2017 Performance New Indicator New Indicator New

CE OF THE SPEAKER THE OF CE

23 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

usion usion

was

. Reasons for deviation Reasons for deviation Audit Committee meeting Audit Committee one poned in the third quarter third the in poned on processes consultation intensive The affecting policies those particularly policies, concl the delayed directly, employees policies. four of these and recommendation The post

not

Variance Variance Institutional None None None None None None 4 policies and reviewed for recommended the EA. by approval Committee 1 Audit held. not meetings None

annual annual

the Chair Chair the

s reviewed s reviewed Actual Actual

ormance of the the of ormance 2017/2018 2017/2018

reports on the the on reports submission Achievement Achievement

2 consolidated 2 consolidated Reports on Protocol activities undertaken 4 quarterly the of meetings Chairperson to plan Committee the and oversee perf Committees. 4 quarterly Programme Frameworks developed. 4 Quarterly performance on reports committees the by developed of Office of Chairs. 2 of implementation resolutions House developed plan 1 year developed/ committee schedule developed 4 Institutional policie and recommended the by approval for EA. Committee 3 Audit held. meetings 1 APP. 28 29

planned target planned target annual annual

Actual Performance against Actual Performance against 2017/2018 2017/2018

reports on the the on reports submission

Planned TargetPlanned TargetPlanned 2 consolidated 2 consolidated Reports on Protocol activities undertaken 4 quarterly the of meetings Chairperson to plan Committee the and oversee performance the of Committees. 4 quarterly Programme Frameworks developed. 4 Quarterly performance on reports committees the by developed of Office Chair the of Chairs. 2 of implementation resolutions House developed plan 1 year developed/ committee schedule developed 8 Institutional reviewed policies and recommended the by approval for EA. Committee 4 Audit held. meetings 1 APP. 4

and 8

Actual Actual E SECRETARY 2016/2017 2016/2017 Performance Performance New Indicator Indicator New (3)Three Quarterly Chairpersons held meetings 4 quarterly programme schedules developed Indicator New Indicator New plan and Year A quarterly programme frameworks developed. were 15 policies reviewed were Policies approved Indicator New Indicator New

ce reports on ce reports

ormance of of the ormance

annual committee schedule schedule committee annual annual reports on the the on reports annual PROGRAMME: OFFICE OF TH OF OFFICE PROGRAMME: annual reports on the on reports annual - Performance Indicator Performance Indicator tional events and functions. and events tional - - Number of Audit Committee of Audit Number APP. of submission Timeous Number of Institutional policies policies Institutional of Number Quarterly performan Quarterly Bi An Bi of meetings of quarterly Number Programme of quarterly Number Programme 1: Administration 1.3 for activities of protocol coordination institu 1.4 plan to Committee Chairperson the perf the and oversee 1.5 developed. Frameworks 1.6. of Office the by developed committees the of Chair Chairs Programme 1: Administration 1.7. resolutions of House implementation developed 1.8. developed SUB 1.9. for and recommended reviewed the EA. by approval 1.10. held. meetings 1.11. Committee.

24 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

usion usion

was

. Reasons for deviation Audit Committee meeting Audit Committee one poned in the third quarter third the in poned on processes consultation intensive The affecting policies those particularly policies, concl the delayed directly, employees The post and recommendation of these four policies. policies. four of these and recommendation

not

Variance Institutional None None 4 policies Committee 1 Audit held. not meetings None reviewed and reviewed for recommended the EA. by approval

s annual annual

s reviewed s reviewed Actual

2017/2018

reports on the the on reports submission Achievement

2 of implementation resolutions House developed plan 1 year developed/ committee schedule developed 4 Institutional policie and recommended the by approval for EA. Committee 3 Audit held. meetings 1 APP. 29

s planned target annual annual

Actual Performance against 2017/2018

reports on the the on reports submission

Planned TargetPlanned 2 of implementation resolutions House developed plan 1 year developed/ committee schedule developed 8 Institutional reviewed policies and recommended the by approval for EA. Committee 4 Audit held. meetings 1 APP. 4

and 8

Actual E SECRETARY 2016/2017 Performance New Indicator New plan and Year A quarterly programme frameworks developed. were 15 policies reviewed Indicator New Indicator New Policies were were Policies approved

annual committee schedule schedule committee annual annual reports on the the on reports annual PROGRAMME: OFFICE OF TH OF OFFICE PROGRAMME: - Performance Indicator - Number of Audit Committee of Audit Number APP. of submission Timeous Number of Institutional policies policies Institutional of Number Bi An

Programme 1: Administration 1.7. resolutions of House implementation developed 1.8. developed SUB 1.9. for and recommended reviewed the EA. by approval 1.10. held. meetings 1.11.

25 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2 held held in the

due to due

elay

was not not was

udget constrains constrains udget rst quarter there rst timeously year, the institution institution the year,

. financial to at least source three three source least at to completed

s Committee meeting Committee Unqualified audit opinion with no no with opinion audit Unqualified Reasons for deviation Reasons for deviation during the financial year. year. financial the during

third quarterthird

audits internal of completion on targets The d the to due achieved not was service audit internal the of appointment provider In the 2016/17 received fi the for therefore matters and for place in Plan Action no Audit was Action Audit the quarter subsequent the not was Plan phase. planning prolonged the Audit The in the not did instances some in Providers Service certain source to request the to respond the and also result as a them from trainings SCM to the due continue not could process requirement B provider. service potential learning the other source to plans derailed cost in some instances, programs, the above programs to the associated budgets. available

otal not

A t es . of 3

not .

of Quarterly of Quarterly

Variance Variance done

presented to the to the presented Quarterly reports Quarterly reports Audits Audits Accredited x

None 2 by Completed Internal Audit None None No on the of implementation the Audit Action plan deviation reports.quarterly None 1 set Statement financial not Audit Committee. 4 Learning Programm provided

Actual Actual

2017/2018 2017/2018 Quarterly sets of Quarterly Audits Audits e Audit Action Accredited x Achievement Achievement

4 QPR to submissions Speaker. 2 by Completed Internal Audit management 4 risk reports. ICT the 70% of Governance Framework Implemented. No on the reports of implementation th plan. audit Unqualified opinion (Clean Audit) 2 Statement financial the to presented Audit Committee. 2 Learning Programmes. 30 31

planned target planned target

Actual Performance against Actual Performance against 2017/2018 2017/2018 Planned TargetPlanned TargetPlanned 4 QPR to submissions Speaker. 4 Audits by Completed Internal Audit management 4 risk reports. ICT the 70% of Governance Framework Implemented. reports 3 Quarterly on the of implementation the Action Audit plan. audit Unqualified opinion (Clean Audit) 3 sets of Quarterly Statement financial the to presented Audit Committee. Accredited 6 x Learning Programmes.

ee.

with no

Actual Actual

2016/2017 2016/2017 Performance Performance New Indicator Indicator New Indicator New Indicator New Four (4) Quarterly on the reports of implementation the ICT Governance Framework One (1) Quarterly on the reports of implementation the Audit Action Plan Unqualified audit opinion matters (3)Three Quarterly financial statements to the presented Audit Committ Indicator New

management management

umber of Reports on the the on of Reports umber . PROGRAMME:MANAGEMENT FINANCIAL & ITC PROGRAMME: SERVICES COOPERATE Number of Accredited learning learning Accredited Number of Performance Indicator Performance Indicator - -

Timeous submission of QPR to to QPR of submission Timeous by Completed of Audits Number of risk Number implementation Percentage N the for opinion audit of the Nature financial of Quarterly Number ICT Governance Framework. Governance ICT

5. Programme 1: Administration 1.12. Speaker. 1.13. Internal Audit 1.14. reports SUB 1.1 the Programme 1: Administration 1.16. Action Audit of the implementation Plan. 1.17. year. financial 1.18. to statement Audit the presented Committee SUB 1.19. Programmes. and Development

26 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2 held held

due to due

was not not was

udget constrains constrains udget rst quarter there rst timeously year, the institution institution the year,

. financial to at least source three three source least at to completed

s Committee meeting Committee Unqualified audit opinion with no no with opinion audit Unqualified Reasons for deviation third quarterthird

potential service provider. B provider. service potential derailed plans to source other the learning learning the other source to plans derailed cost in some instances, programs, the above programs to the associated budgets. available In the 2016/17 In the 2016/17 received fi the for therefore matters and for place in Plan Action no Audit was Action Audit the quarter subsequent the not was Plan Audit The in the not did instances some in Providers Service certain source to request the to respond the and also result as a them from trainings SCM to the due continue not could process requirement the prolonged planning phase. phase. planning prolonged the

otal not

A t

es . of 3

of Quarterly of Quarterly Variance done

presented to the to the presented Quarterly reports Quarterly reports x Accredited x

deviation deviation quarterly reports.quarterly No on the of implementation the Audit Action plan None 1 set Statement financial not 4 Learning Programm Audit Committee. provided

Actual

2017/2018 Quarterly sets of Quarterly e Audit Action e Audit Action Accredited x Achievement

No on the reports of implementation th plan. audit Unqualified opinion (Clean Audit) 2 Statement financial the to presented Audit Committee. 2 Learning Programmes. 31

planned target

Actual Performance against 2017/2018 Planned TargetPlanned 3 Quarterly reports reports 3 Quarterly on the of implementation the Action Audit plan. audit Unqualified opinion (Clean Audit) 3 sets of Quarterly Statement financial the to presented Audit Committee. Accredited 6 x Learning Programmes.

ee. with no

Actual

2016/2017 Performance One (1) Quarterly on the reports of implementation the Audit Action Plan Unqualified audit opinion matters (3)Three Quarterly financial statements to the presented Audit Committ Indicator New

umber of Reports on the the on of Reports umber PROGRAMME: SERVICES COOPERATE Number of Accredited learning learning Accredited Number of Performance Indicator -

N the for opinion audit of the Nature financial of Quarterly Number Programme 1: Administration 1.16. Action Audit of the implementation Plan. 1.17. year. financial 1.18. to statement Audit the presented Committee SUB 1.19. Programmes. and Development

27 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

708 . One in . One in 1 890 7 324 7 202 y work to to work y (2 720) (2

apital section apital C

uman (Over)/Under Expenditure R’000

Reasons for deviation 6 619 4 774

11 815 2 36 687 79 895 per year are per year sufficient at of the Executive Management Management Executive the of at

2017/2018

ee on Rules in each quarter consistently quarter each in Rules on ee

Actual Expenditure R’000 consultations consultations

9 095 6 664 Variance 27 327 44 011 87 097

Treasury Treasury None

Final Appropriation R’000

91 Actual

(204) 2017/2018 1 350 6 093 29 252 36 Achievement two meetings meetings two

60% of implementation security annual audit recommendations). 32 33

proposed amendment of the new APP for 2018/2019 in this regard. this in for 2018/2019 APP the new of amendment proposed planned target (Over)/Under Expenditure R’000

ditional to the annual target of the upcoming financial year. financial year. the upcoming target tothe of annual ditional Actual Performance against ual security 2017/2018 050

8309

5 tions to consider unique training needs of the institution. institution. the of needs training unique consider to tions Planned TargetPlanned 16 718 26 773 56 850 60% of implementation ann audit recommendations).

performance indicator will be rephrased to maintain the same content and target so that the the that so target and content the same maintain to rephrased be will indicator performance

2016/2017

his

Actual Expenditure R’000

Actual 2016/2017 400

Performance 8 105 6 22 811 56 025 93 341 budgeting process of the Legislature, the of process budgeting New Indicator New

new

Final Appropriation R’000

programme expenditure expenditure programme

- In the next planning circle, t circle, planning the next In The Audit Action Plan will be prioritised and signed off in the first quarter on the 2018/19 financial year. All the necessar the All year. financial 2018/19 the on quarter first the in off signed and prioritised be will Plan Action Audit The The training and learning programs will be properly budgeted for in the upcoming financial year. Also, the H the Also, year. financial upcoming the in for budgeted properly be will programs learning and training The In terms of the Policies that are not recommended to the EA are currently before the Communications Forum for broader consultation with with consultation for broader Forum Communications the before currently are the EA to recommended not are that Policies

The Programming Committee must ensure that there is a meeting of the Standing Committ Standing the of meeting a is there that ensure must Committee Programming The 9: 6: Sub performance under of areas overcome to Strategy

Performance Indicator Programme Programme

3.1.6. 3.1.5. Percentage implementation of the the of implementation Percentage

- Sub Name of Office Speaker the Office of the Secretary Management Financial Corporate Services Total Programme 1: Administration 1.20. audit. security annual

Indicator 1.1: 1.1: Indicator Indicator 1.2: Indicator Indicator 1.1 Indicator will make extra efforts to negotiate with different institu different with negotiate to efforts extra make will Indicator 1.1 Indicator meetings. Committee quarterly financial reports should no longer be depended on the schedules of the Audit Committee meetings but th but meetings Committee Audit of the schedules the on depended be longer no should reports financial quarterly Indicator 1.9: 1.9: Indicator employees, these policies will be processed considered ad considered processed be will policies these employees, the First Quarter and the other in the third Quarter, there will be a be will there Quarter, third the in other the and Quarter the First put together this plan has been concluded. been has plan this together put Indicator 1.18: 1.18: Indicator

28 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

708 1 890 7 324 7 202 (2 720) (2

(Over)/Under Expenditure R’000

6 619 4 774

11 815 2 36 687 79 895

2017/2018

Actual Expenditure R’000

9 095 6 664 27 327 44 011 87 097

Final Appropriation R’000

(204) 1 350 6 093 29 252 36

(Over)/Under Expenditure R’000

050

8309

5 16 718 26 773 56 850

2016/2017

Actual Expenditure R’000

400

8 105 6 22 811 56 025 93 341

Final Appropriation R’000

programme expenditure expenditure programme

- Sub

Programme Programme

3.1.6.

- Sub Name of Office Speaker the Office of the Secretary Management Financial Corporate Services Total

29 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

UNDER UNDER AREAS OF AREAS OF OVERCOME OVERCOME STRATEGY TO STRATEGY TO PERFORMANCE PERFORMANCE The R&S processes that have already started in 2017/18 and financial year appointmentsall bewill made in the next financial year. will target This during implemented stage. appoint the

DEVIATIONS DEVIATIONS no appointmentsno

COMMENT ON COMMENT ON Due to consultation Union and the with stakeholders,other the Recruitment and Selection process was delayed. In accordance the with approved Recruitment plan shortlisting and interviews were completed but there was made. were appointment No financial in this made year.

FROM FROM TARGET TARGET PLANNED PLANNED DEVIATION DEVIATION Total deviation Total deviation None None None

ity

/2018 /2018

submitted on ACTUAL ACTUAL 34 35 2017 2017 port on on port ACHIEVEMENT ACHIEVEMENT tical vacant tical 0% of the identified cri positions. There is achievement Employment Equ Targets. Report applications100% processed and approved. 2 Projects on Organisational Wellness Programme Re Overseeing the structural defects project aimed at addressing all identified structural submitted.

ity Targets.ity ANNUAL ANNUAL TARGET TARGET 2017/2018 2017/2018 Filling 50% of identifiedthe vacantcritical positions Achieving 70% of Employment Equ 100% applications processed and approved. 2 projects on Organisational Wellness Programme Overseeing the structural defects project aimed at addressing all identified structural defects main at facility

ment

– Programme One Programme

–

PROJECT PROJECT DESCRIPTION DESCRIPTION % of positions filled Transformation Achieving Employ Building a Learning Culture by processing bursary applications Improve employee wellnesshealth and through Organisation Wellness programmes Technical identification specificationand of work for addressing major minor and defects Equity Targets

Institutional Projects Projects Institutional learning on of work

nisational 3.1.7. PROJECT NAME PROJECT NAME PLANNED TARGET/ PLANNED TARGET/ Implementation of the Organisational Structure Implementation of the Organisational employment Equity Strategy Building a processing by culture bursary applications Implementation of the Orga Wellness strategy Technical identification and specificati for major addressing minorand defects

30 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

UNDER AREAS OF OVERCOME STRATEGY TO PERFORMANCE

DEVIATIONS COMMENT ON

FROM TARGET PLANNED DEVIATION None None None

/2018

ACTUAL 35 2017 port on on port ACHIEVEMENT 2 Projects on Organisational Wellness Programme Re Overseeing the structural defects project aimed at addressing all identified structural submitted.

ANNUAL TARGET 2017/2018 2 projects on Organisational Wellness Programme Overseeing the structural defects project aimed at addressing all identified structural defects main at facility

PROJECT DESCRIPTION Improve employee wellnesshealth and through Organisation Wellness programmes Technical identification specificationand of work for addressing major minor and defects

on of work nisational PROJECT NAME PLANNED TARGET/ Implementation of the Orga Wellness strategy Technical identification and specificati for major addressing minorand defects

31 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

226

(640) (414)

R’000 Expenditure (Over)/Under

Reasons for deviation

7024 48112 55136

R’000 Actual 2015/2016 Expenditure

Variance None None

6384

4833 54722

ure in order to perform their constitutional perform their in to order ure

Final R’000 payments 20 Appropriation

2017/2018

total of Actual Achievement A made line in policy with legislationand 100% of budget the spent

target 1 680 1 680

R’000 er)/Under 36 37 Expenditure (Ov 2017/2018

ActualPerformance against planned -

Planned TargetPlanned A minimum of 16 16 of minimum A payments made policy with line in legislationand 100% of the budget spent 162

39 162 39

R’000 Actual

2015/2016 Expenditure SUPPORT SUPPORT Actual rformance

2017/2018 Pe 17 payments17 made line in and policy with legislation 100% of budget spent at year end

842

40 842 40

To provide financial support to Members of the Provincial Legislat Provincial the to ofTo provide financial Members support

Final R’000

. Appropriation : To empower Members of the Provincial Legislature through financial support. through Legislature Members Provincial the empower : of To

PARTIES POLITICAL 2. 1. MEMBERS FACILITIES

programme: MPL and Political Party Support

- programme expenditure programme

- Programme 2: MPL Partyand SupportPolitical Performance Indicator Strategic 3 Objective obligations/mandate. Sub

Purpose Programme: of the PROGRAMME Programme Name Programme -

1 Number of made payments in line with 3.2. Sub Facilities Members Political Parties Support Total Programme/Sub SUB 2. regulations andpolicy law, the % 2.2 of spending in line withthe budget 3.2.2. 3.2.3.

3.2.1.

32 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

226

(640) (414)

R’000 Expenditure (Over)/Under

7024 48112 55136

R’000 Actual 2015/2016 Expenditure

6384 4833 54722

Final R’000 Appropriation

1 680 1 680

R’000 er)/Under 37 Expenditure (Ov

- 162

39 162 39

R’000 Actual 2015/2016 Expenditure

842

40 842 40

Final R’000 Appropriation

programme expenditure programme

- Sub

Programme Name Programme

Sub Facilities Members Political Parties Support Total

3.2.3.

33 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

their their

Reasons for deviation Reasons for deviation

Variance Variance None None None None None None

he Legislature and Committee processes. and Committee Legislature he

tting held i

2017/2018 2017/2018

legal advice and legal advice

slation summaries summaries slation

legi Actual Achievement Actual Achievement 4 produced manual 1 compliance produced 100% 2 within provided opinions of receipt of months request 5 house sittings held outside the Legislature seat. 100% of mandates submitted the NCOP. to 4 House S where opportunities pose questions to the Premier and Executive is created

. Target Target .

itting held itting 38 39

legal advice and legal advice 2017/2018 2017/2018 Actual PlannedPerformanceAgainst Actual Target PlannedPerformanceAgainst Actual Target Planned TargetPlanned TargetPlanned 4 legislation summaries summaries 4 legislation produced manual 1 compliance produced 100% within provided opinions of of receipt 2 months request 5 house sittings held outside the Legislature seat. 100% of mandates submitted the to NCOP. 4 House S where opportunities poseto questions to the Premier and Executive is created

16/17 20 16/17 20

Actual Performance Actual Performance Actual

Produced 4 summaries summaries 4 Produced legislation of 1 compliance Produced manual Indicator New 4 House sittings held outside the Legislature seat 100% of Mandates submitted the to NCOP for each Sec bill referred76 to the NCPL 4 House Sittings where questions are toposed the Premier the and Executive by MPLs.

To promote the role of the Legislature by facilitating public participation in t participation in facilitating public by rolepromote Legislature the the of To Build a capable and productive parliamentary service parliamentary productive and a capable Build

: To improve oversight through the implementation of the oversight the ofmodel. implementation the oversight : through To improve ngs held ndate as well as other functions delegated by the House. the by delegated functions other as well as ndate o pose questions Law Making and Making Business Law House Law Making and Making Business Law House 76 bill referred to To provide the House, Committees and Members with Procedural, Research, Information and Hansard Services in the execution of of the execution and Hansard Services in Research, Information with Procedural, and Members the House, Committeesprovide To Objective 6: Objective Objective 5: Objective

PROGRAMME: SERVICES LEGAL PROGRAMME: PROCEEDINGS NCOP AND - -

Performance Indicator Performance Indicator

f request f

SUB SUB Strategic Strategic Constitutional ma Strategic 4 Objective Purpose: Programme 3: Parliamentary Business Parliamentary 3: Programme

- - Number of legislation summaries summaries of legislation Number manuals compliance of Number and advice legal of Percentage

Sub Programme: SUB 3.1. produced 3.2. produced 3.3. of months 2 within provided opinions o receipt Sub Programme: SUB Number3.4. of sitti house outside the Legislature seat. % 3.5. of mandates submitted to the NCOP for each Sec NCPLthe Number3.6. of Househeld Sitting where opportunities t theto Premier and Executive is created

3.3.2. 3.3. 3.3.1.

34 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

Reasons for deviation

Variance None None None None

tting held i . 2017/2018

Actual Achievement 5 house sittings held outside the Legislature seat. 100% of mandates submitted the NCOP. to 4 House S where opportunities pose questions to the Premier and Executive is created Target

itting held itting 39

2017/2018 Actual PlannedPerformanceAgainst Actual Target Planned TargetPlanned to poseto questions to the Premier and Executive is created 5 house sittings held outside the Legislature seat. 100% of mandates submitted the to NCOP. 4 House S where opportunities

20 16/17

Actual Performance Actual 4 House sittings held outside the Legislature seat 100% of Mandates submitted the to NCOP for each Sec bill referred76 to the NCPL 4 House Sittings where questions are toposed the Premier the and Executive by MPLs.

ngs held o pose questions Law Making and Making Business Law House 76 bill referred to PROGRAMME: PROCEEDINGS NCOP AND -

Performance Indicator

SUB - Sub Programme: SUB Number3.4. of sitti house outside the Legislature seat. % 3.5. of mandates submitted to the NCOP for each Sec NCPLthe Number3.6. of Househeld Sitting where opportunities t theto Premier and Executive is created

35 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

ons and and ons ns for deviation Reasons for deviation

Reaso other with 11 Contracting could departments provincial the to due place not take between work outstanding and Committees Portfolio the draft The departments. developed were contracts but in some instances, chairpers committee available be not could MECs processes. the concluding to

Variance ouse earings Variance Over achievement 5% with Over achievement 10% with public h where at least interpreterone for an identified/ prevalent language is available electronic transcripts of H debates available 5 within working days Contracts were were Contracts None None 11 completed. not

2017/2018

% of electronic % of public hearings Actual Achievement

95 transcripts of House debates available within 5 working days 70 where at least one interpreter for an identified/ prevalent language is available contracts entered into entered contracts Actual Achievement Target

100 % committee reports reports committee 100 % prepared 2 departments with Target

40 41 2017/2018 2017/2018 Actual PlannedPerformanceAgainst Actual Target contracts entered entered contracts Planned TargetPlanned

Actual PlannedPerformance Against Actual Target Planned TargetPlanned 90% of90% electronic transcripts of House debates available days 5 working within of60% public hearings atwhere interpreter one least for an identified/ prevalent language is available 100 % committee prepared reports 13 into with departments

se lable

icator 16/17 Ind 20 16/17 20

New New Actual Performance Actual Performance Actual 95% of95% electronic transcripts of Hou of68% public hearings atwhere least one interpreter for an identified/prevalent language is avai No Contracting took place debates available days 5 working within

Law Making and Making Business Law House

. PROGRAMME: SERVICES HANSARD PROGRAMME: PORTFOLIO COMMITTEES - -

. Performance Indicator Performance Indicator SUB SUB - - Number of contracts into of entered Number Percentage of Committee reports reports of Committee Percentage Sub Programme: SUB % 3.7. of electronic transcripts of House debates available within 5 working days % 3.8. of public hearings where at least one interpreter for an identified/prevalent language is available Oversight & Participation Public Programme: Sub SUB 3.9. with held meetings the on prepared and to monitor departments provincial performance evaluate 3.10. departments with

36 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

ons and and ons ns for deviation Reaso other with 11 Contracting could departments provincial the to due place not take between work outstanding and Committees Portfolio the draft The departments. developed were contracts but in some instances, chairpers committee available be not could MECs processes. the concluding to

Variance Contracts were were Contracts None None 11 completed. not

2017/2018

contracts entered into entered contracts Actual Achievement 100 % committee reports reports committee 100 % prepared 2 departments with Target

41 2017/2018 contracts entered entered contracts

Actual Planned Performance Against Actual Target Planned TargetPlanned 100 % committee 100 % committee prepared reports 13 into with departments

icator Ind 20 16/17

New New Actual Performance Actual No Contracting took place

PROGRAMME: PORTFOLIO COMMITTEES - Performance Indicator SUB - Number of contracts into of entered Number Percentage of Committee reports reports of Committee Percentage Sub Programme: Public Participation & Oversight & Participation Public Programme: Sub SUB 3.9. with held meetings the on prepared and to monitor departments provincial performance evaluate 3.10. departments with

37 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

use were were

of the Ho the however, the the however,

however, the the however, , led to the delay in in delay to the led re prepared and and prepared re

ns for deviation ns for deviation

unavailability of limited limited of unavailability Reaso Reaso continues was There scheduled of postponement meeting committee external due unavailability members. designated staffing Limited to committees minutes we availed. designated staffing Limited to committees reports committee availed. and prepared The signatories communicating executive. the to resolution

not not

were not were

public public

of House House of Variance Variance of committee committee of Committee Committee % None None 3 meetings the held outside seat Legislature 8% available minutes after 5 days within meeting. the 3 compiled reports not made were 5 within available the after days meeting 34% Resolutions to communicated executive the achievement Over 16 of education held. programmes None achievement Over of 24 public education/ communication

tion ittee minutes minutes ittee ithin 5 days ithin 5 days

2017/2018 2017/2018 Percentage of Percentage

of comm reports Committee of Resolutions House of public education education public public educa % % Committee meetings meetings Committee Actual Achievement Actual Achievement

100% facilitated Hearings Public reports 2 oversight produced 2 the held outside seat Legislature 92% w available meeting. the after 97 5 within available compiled meeting the after days 66 to the communicated executive 136 held programmes 0 36 products communication Target Target /

tion

42 43

. Percentage of Percentage of committee committee of Committee of of House

2017/2018 2017/2018

Actual Planned Performance Against Actual Target PlannedPerformance Against Actual Target Planned TargetPlanned TargetPlanned

100% Hearings Public facilitated reports 2 oversight produced held 5 meetings the outside seat legislature 100% available minutes after 5 days within meeting the 100% compiled reports 5 within available the after da ys meeting 100% Resolutions to communicated executive the education 120 public held programmes 0 educa 12 public communication products

16/17

ons produced ons 20 16/17 20

ive Visitors undertook Visitors

public education education public

Public education and education Public % of committee committee % of Committee % of Actual Performance Actual Performance Actual New Indicator New oversights on 1 Reports undertaken visits meetings 2 Committee the held outside seat Legislature 33 within available minutes meeting the after 5 days 31 compiled reports 5 days within available meeting the after House 77% of Resolutions to the communicated execut 111 held programmes 1763 tours of the NCPL building 12 communication publicati

ghts reports

PROGRAMME: PUBLIC EDUCATION -

Performance Indicator Performance Indicator

SUB - Percentage of Public Hearings Hearings of Public Percentage ofNumber oversi held meetings of Committee Number education public of Number NCPL the ofto visitors Number / education public of Number % of Committee minutes available to to available minutes % of Committee to submitted reports % of Committee Resolutions % of House Sub Programme: Public Participation & Oversight & Participation Public Programme: Sub 3.11. facilitated 3.12. produced 3.13. seat Legislature the outside 3.14. the after days 5 within manager line the meeting 3.15. after days 5 working within manager line meeting the Oversight & Participation Public Programme: Sub 3.16. the NCPL and executive to communicated Sitting the after 7 days within SUB 3.17. held programmes 3.18. building 3.19. products communication

38 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

use the Ho the

led to the delay in in delay to the led

ns for deviation unavailability of limited limited of unavailability Reaso resolution to the executive. the to resolution The The signatories communicating

not not

public public of House House of Variance 34% Resolutions to communicated executive the achievement Over 16 of education held. programmes None achievement Over of 24 public education/ communication

tion

2017/2018

of House Resolutions Resolutions House of public education education public public educa % Actual Achievement

66 to the communicated executive 136 held programmes 0 36 products communication Target /

tion

of House

2017/2018

Actual Planned Performance Against Actual Target Planned TargetPlanned

100% Resolutions to communicated executive the education 120 public held programmes 0 educa 12 public communication products

ons produced ons 20 16/17

ive Visitors undertook Visitors

public education education public

Public education and education Public

Actual Performance Actual 77% of House House 77% of Resolutions to the communicated execut 111 held programmes 1763 tours of the NCPL building 12 communication publicati

PROGRAMME: PUBLIC EDUCATION - Performance Indicator

SUB - Number of public education education public of Number NCPL the ofto visitors Number / education public of Number % of House Resolutions Resolutions % of House Sub Programme: Public Participation & Oversight & Participation Public Programme: Sub 3.16. the NCPL and executive to communicated Sitting the after 7 days within SUB 3.17. held programmes 3.18. building 3.19. products communication

39 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

. 4584 2009 6593

ns for deviation

er)/Under Reaso (Ov Expenditure R’000

692

29403 13289 42

ill be encouraged to consider toconsider encouraged be ill

Variance programmes programmes produced. None None achievement Over 6% on the with Analysis Research 2 available made the to prior days meeting. Actual Expenditure R’000

re in the absence of both the Speaker and and Speaker the both of absence the in re 33987 15298 49285

2017/2018

updates on website by by website on updates 2017/2018 Final Appropriation R’000 Actual Achievement

4 petitions reports 4 petitions 11 2018 end March of66% research Report (Analyses) made available 2 days prior to meeting.the Target

168

(114) 2 2 054

44 45

2017/2018 s toprior the updates on on updates Actual Planned Performance Against Actual Target (Over)/Under Expenditure R’000 Planned TargetPlanned 4 petitions reports 4 petitions 11 end by website 2018 March of60% research (Analyses)Report made available 2 day meeting

28 289 13 666 41 955

AND INFORMATION SERVICES INFORMATION AND

20 16/17

Actual Expenditure R’000

% of Research Research % of Actual Performance Actual 4 Reports wer 4 Reports to submitted on petitions committees received Indicator New 60 Reports (Analyses) 2 days available made committee the to prior meeting 28 175 15 834 44 009

2016/2017 Final Appropriation R’000

iscipline will be enforced and actions against employees will be taken against employees that do not meet the submission submission the meet not do that employees against taken be will employees against actions and enforced be will iscipline

D The signing of House Resolutions will be extended to the Secretary to the Legislatu to Secretary the to extended be will Resolutions House of signing The A discipline will be enforced and actions against employees will be taken against employees that do not meet the submission the submission meet that not do employees taken be against will employees against actions and enforced be will discipline A The performance indicator will be amended to allow for submission of draft contracts which are within the control of the unit of control the within are which contracts draft of for submission allow to be amended will indicator performance The The planning of activities will be closely aligned with the performance indicator and also members w members also and indicator the performance with aligned closely be will activities of planning The

: : : : PROGRAMME: RESEARCH - 0: .15 programme expenditure expenditure programme .14 .16 .1 .13 -

3 Performance Indicator

SUB - Strategy to overcome areas of under performance Strategy areas to overcome

Sub Number of reports submitted to to submitted of reports Number Website NCPL on Updates % of research Report (Analyses) (Analyses) Report % of research Programme Name Programme

- cator 3 cator Sub Programme: Public Participation & Oversight & Participation Public Programme: Sub 3.20. on petitions committees 3.21. SUB 3.21. the to prior 2 days available made meeting. Sub and Public Participation Oversight House and making Law Business Total

3.3.3. Indi 3.3.4. Indicator Indicator the impact that postponement of committee have on the performance indicators. indicators. performance the on have committee of postponement that the impact 3 Indicator deadli nes. 3 Indicator Indicator 3 Indicator deadlines. Deputy Speaker. Speaker. Deputy

40 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

. 4584 2009 6593

er)/Under (Ov Expenditure R’000

692 29403 13289 42

ill be encouraged to consider toconsider encouraged be ill

Actual Expenditure R’000

re in the absence of both the Speaker and and Speaker the both of absence the in re 33987 15298 49285

2017/2018 Final Appropriation R’000

168

(114) 2 2 054

(Over)/Under Expenditure R’000

28 289 13 666 41 955

Actual Expenditure R’000

28 175 15 834 44 009

2016/2017 Final Appropriation R’000

: : : : 0: .15 programme expenditure expenditure programme .14 .16 .1 .13 -

Strategy to overcome areas of under performance Strategy areas to overcome Sub Programme Name Programme

- cator 3 cator Sub and Public Participation Oversight House and making Law Business Total

41 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

CORPORATEPART C GOVERNANCE

42 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

1. INTRODUCTION

The Executive Authority and management of Northern Cape Provincial Legislature have demonstrated committed to a system of Good Governance throughout the financial years. The NCPL maintains a high standard of ethics and collectively acting in good faith and in the best interest of the organization.

There are oversight structure that are established by the Speaker and the Secretary to consistently advice the actions and means appropriate to keep the institution afloat. These governance structures are properly budgeted for and provided with adequate administrative support when executing their mandate. In order to keep on internal controls systems well intact, the institution is dependent on their advice and guidance to continue improving. The legislature adopted a co-sourcing approach on the Internal Audit Function. Both the external service provider and the Internal Auditor of the institution carry the Internal Audit Function. Furthermore, the Corporate Governance serves a purpose of facilitating the effective and efficient Management of the institution by putting in place a system and framework of controls.

2. RISK MANAGEMENT

In terms of Section 7(c) of Financial Management of Parliament and Provincial Legislature Act, Act 10 of 2009 (FMPPLA), the Accounting Officer is required to ensure that the institution has and maintain effective, efficient and transparent systems of financial management, risk management and internal control and Internal Audit. In 2016 with approval of the new organizational structure, the Risk Management Unit resides in the office of the Accounting Officer. As per the organisational structure, the Unit comprises of Manager and Risk Specialist.

The Risk Management Committee (RMC) is an oversight committee established by the Secretary in terms of the Northern Cape Provincial Legislature’s Risk Management Charter. The committee comprises of twelve members whom are internal employees employed at management level and is chaired by an external candidate who is the Senior Manager at the Northern Cape Provincial Treasury.

47 43

NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

3. CONFLICT OF INTEREST

In line with the best practices and the policy provisions of the Legislature, all employees are compelled to make declaration of interest on an annual basis. The Office of the Secretary facilitate these declarations of interest made and maintain the records of the entire institution. The declaration of interest by individual NCPL employees is made in accordance with the Declaration of Interest Policy. The objective of the Declaration of Interest Policy is to minimise any potential conflict of interest that may arise.

Conflict of interest for Members of the Legislature is regulated by the Code of Ethics for Members. The Code provides a framework of ethical standards that must be upheld by Members. The Committee on Ethics and Conduct is supported administratively by the Registrar for Members Interest to ensure implementation and adherence to the code. The Registrar for Members Interest annually compiles and maintains a Register of Members Interest as required by the Code.

4. CODE OF CONDUCT

The Northern Cape Provincial Legislature adheres to the Northern Cape Provincial Legislature Service Act, Act no 2 of 2011, the Conditions of Service of the Northern Cape Provincial Legislature and the Disciplinary Policy and Procedures of the Northern Cape Provincial Legislature in addressing matters of Conduct and Ethics.

The Legislature Reviewed the Disciplinary Policy and procedure during the previous financial year and addressed instances of misconduct that occurred in terms of the newly approved policy. The NCPL Code of Ethics is currently under review.

5. HEALTH SAFETY AND ENVIRONMENTAL ISSUES For the financial year under review, the NCPL operated from the leased properties outside of the Legislature Precinct due Theto the Legislature NCPL Building is occupying rehabilitation two projectseparate that buildingsis underway. in theThe city role centre of Health while and theSafety structural was therefore defects dually project carried is by ongoingproperty at owner the mainand the facility. dedicated These unit buildings of the institution are not. completely compliant in as far as its SHE infrastructure is concerned, which is further complicated by the fact that the Legislature is only leasing such for the interim. The CCTV and Biometric electronic security systems is strategically installed to cover main access points, although the ideal is to have fully integrated systems which covers all areas of movement. This would enable full compliance with the Minimum Physical Security Systems and a proactive approach to minimise risk and threat at the buildings; 48 The Cleaning Company is only appointed on short term contracts while the Legislature is having temporary

44 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2 leases, which result in the service providers to be hesitant/unable to invest in state of the art products to enhance hygiene at the respective buildings. The Legislature environment demands a high level service, which is informed by the profile of its people and visitors to the Institution, which is generally not being met due to the named factors. A very basic and simplistic service is being delivered by contracted service providers, which should ideally change and improve once the Legislature is relocated back to its main facility, where long-term investment is justified.

The environment in which the temporary buildings are situated, is not ideal for the business of the Legislature, in that it is located in and around identified crime hotspot areas. Although the Legislature is not directly affected by this condition, it may happen from time to time that Members and staff would be exposed to an indirect element of threat. This factor will be adequately addressed once the project at the main facility is concluded and the business can be moved to the controlled and conducive environment.

6. OVERSIGHT COMMITTEES

TheThe Legislature Committee Committee system system is one is one of the of manythe many oversight oversight mechanisms mechanisms used to usedoversee to theoversee work ofthe the work Provincial of theExecutive. Provincial The Executive. NCPL has designatedThe NCPL Sixhas Portfolio designated Committees Six Portfolio and One Committees Standing Committee and One Standingto function Committee in accordance towith function the NCPL in accordanceOversight Model, with Annual the NCPL Committee Oversight Cycle Model, and the Annual Chairpersons Committee Framework. Cycle and the Chairpersons Framework. The Office of the Chairperson of Committees (OCoC) has been central in monitoring and evaluating the discharge of mandates by the respective House Committees (Portfolio Committees) and to ensure strategic management of Committees and Committee business, thereby ensuring that the mandates of the Institution as a whole is delivered. Thus, it is through the OCoC that the very core objectives of the 7. SCOPA RESOLUTIONS Institution is realized since the very mandate of the Institution is given effect to and executed through the

House Committees, as strategically led by the OCoC.

The OCoC is responsible for coordinating the work of Committees of the Legislature by scheduling the activities of Committees in the Annual and Quarterly Framework and for making recommendations to the Rules Committees and the Programming Committee regarding any matter affecting the scheduling or functioning of any committee. The OCoC is also responsible to integrate all the activities of the NCPL, the Executive, the NCOP and the Sectoral Parliament in the Framework of the Institution to ensure that there is synergy.

NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

6. OVERSIGHT COMMITTEES

The Legislature Committee system is one of the many oversight mechanisms used to oversee the work of the Provincial In exercising the oversight function, the NCPL (a) obtains first-hand information from people involved in Executive.the direct Theimplementation NCPL has designated of the departmental Six Portfolio programme;Committees and (b) Oneinvites Standing experts Committee from outside to function government in accorda to nce withprovide the NCPL background Oversight knowledge Model, Annual and Committee analysis on Cycle relevant and the issues; Chairpersons (c) may Framework. go on oversight visit that entails physical inspection, conversing with people, assessing impact of delivery and make reports that include recommendations to the House for adoption.

7. SCOPA RESOLUTIONS

Resolution Subject Details Response by the NCPL Resolved No. (Yes/No) 1 RECRUITMENT As a matter of urgency During the 1st quarter of financial year Yes AND SELEC- ensure that vacant 2017/2018 eight (8) positions were TION funded positions are advertised internally and 2 managerial filled by following proper positions were advertised externally. recruitment and se- At the beginning of the 4th quarter lection processes. eight (8) positions were advertised internally and six (6) positions were advertised externally. Of the twenty three (23) positions advertised only six (6) positions were filled. 2 TRACKING The Legislature The signing of the House Resolutions Yes OF HOUSE must strengthen have been extended to all Presiding RESOLUTIONS and capacitate the Officers in order to fast-track Committee so that there communication of resolutions. We is effective monitoring are currently considering a proposal and tracking of house from the Office of the Chairperson Resolutions. for capacitating it in the next financial to enable it to monitor the tracking of house resolutions more effectively.

46 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

8. INTERNAL AUDIT REPORT

INTRODUCTION

The purpose of this report is to summarise the activities of the internal audit function throughout the 2017/2018 financial year.

The Internal Auditor acts in accordance with the duties and responsibilities set out in Internal Audit Charter, the Audit Committee Charter and the Internal Audit Operational Plan as well as the requirements of an employee of the Northern Cape Provincial Legislature.

Further, the Internal Auditor must comply with the Code of Ethics (Integrity, Objectivity, Confidentiality and Competency); Rules of Conduct and International Standards as prescribed in The Institute of Internal Auditors (IIA) International Professional Practices Framework (IPPF).

The IPPF is a conceptual framework that organises the authoritative guidance promulgated by the IIA. Authoritative guidance is comprised of two categories (1) mandatory and (2) strongly recommended.

Due to circumstance beyond the control of the Internal Auditor, the program of work had to be reduced and the minimum four scheduled internal audits were met.

INTERNAL AUDIT

Value is added by the internal audit function by providing independent, objective assurance1 and consulting2 services.

The audit function brings a systematic, disciplined approach to evaluate and improve office systems, processes and reporting.

Accordingly audit planning must be sufficiently comprehensive to regularly audit/review all facets of the Northern Cape Provincial Legislatures (NCPL) operations, having regard to the functions and duties imposed on by the Audit Committee.

1 Assurance services involve the Internal Auditor’s objective assessment of evidence to provide an independent opinion or conclusions regarding a process, system or other subject matter. The nature and scope of the assurance engagement are determined by the Internal Auditor. 2 Consulting services are advisory in nature, and are generally performed at the specific request of an engagement client.The nature and scope of the consulting engagement are subject to agreement with the engagement client.

50 47 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

In effect the internal audit function will as part of its approved operational plan, audit and/or review: • compliance with policies, plans, procedures, legislation and regulations; • achievement of established objectives and goals for the operation or process; • reliability and integrity of information; • economic, effective and efficient use of resources; and • safeguarding of assets

OTHER INTERNAL AUDIT WORK

As well as conducting internal audits, the Internal Auditor provides an advisory and consultancy role to management and staff. The Internal Auditor works strategically to create increasing capability in the effective and efficient use of a limited resource within the internal audit function.

The Internal Auditor must maintain currency in understanding of the trends and practices of the internal audit profession and to continue a program of proficiency and continuing professional development. This includes the enhancement of knowledge, skills and other competencies.

REPORTING

The internal audit activity must be independent and internal auditors must be objective in performing their work3. Objectivity is presumed to be impaired if an Internal Auditor provides assurances services for an activity for which the internal auditor had responsibility within the previous year4.

Assurance is hereby given that the Internal Auditor did not have responsibility for any function or activity audited or reviewed during the reporting period.

The Internal Auditor reports administratively to the Secretary to the Legislature and functionally to the Audit Committee.

3 Attribute Standard 1100 of the IPPF. 4 Attribute Standard 1130.A1

48 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

ORGANISATIONAL INDEPENDENCE

Assurance is hereby given that the internal audit activity is organisationally independent.

Organisational independence is achieved by functional reporting of the Internal Auditor to the Audit Committee. Examples of functional reporting to the Audit Committee has the Audit Committee: • approving the internal audit charter; • approving the risk based internal audit plan, • receiving communication from the internal auditor on internal audit’s activity’s performance relative to its plan and other matters; and • making appropriate inquiries to determine whether there are inappropriate scope or resource limitations.

INTERNAL AUDIT PLAN

The purpose of the Provincial Legislatures Internal Audit Plan is to identify areas of risk within the institution’s operations and business activities and to establish internal audit review priorities for the identified risk areas.

The Annual Internal Audit Plan is developed on the basis that it does not overlap with the scope of external audits and combines two essential elements. The first being an assessment of risk and materiality based on management identified risks and concerns, including financial and performance considerations. The second being, the identification, justification and scheduling of the work to be undertaken by the Internal Auditor within the audit plan period.

A priority for an Internal Audit function is to complete its annual operational plan in the year it is due. While this is a goal to be reached for Internal Audit function, from time to time other strategic organisational priorities may impact upon this priority.

INTERNAL AUDIT CO-SOURCED

The internal audit function of the NCPL was co-sourced to Pricewater Coopers (PWC) for the fiscal year (FY) 2017. The consultancy firm was brought in to assist the Internal Audit Department due to the following reasons: • Having Lack of technical in-house capability • Lacking the capacity to do the work • Lack of Audit Infrastructure needed to perform audits

49 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

Although the function is co-sourced, the benefit of this environment is a knowledge transfer framework which the internal audit skills and expertise are augmented by the knowledge and leading practices introduced by the service provider.

INTERNAL AUDIT RECOMMENDATIONS

All internal and external audit recommendations are followed up by the Internal Auditor and actions taken are reviewed. Any overdue recommendations are reported to the Secretary to the Legislature and followed up with the specific Executive Managers.

At each Audit Committee meeting, outstanding or overdue recommendations are reported and the reasons for the delay provided. Requests for extension to target dates are considered by the Internal Audit.

A good measure of the effectiveness of the audits is the acceptance of recommendations. The Internal Auditor works closely with each of the divisions which are the subject of performance audits and or compliance audits to ensure that recommendations made are practical and balanced.

AUDIT COVERAGE AND PLANNING

Internal audit’s overall audit objective is to provide an opinion which is positive and reasonable. Positive means that our opinion will be based on seeing evidence of adequate action. Reasonable means that there will be sufficient evidence underpinning our opinion to make it reliable. However; it is not and cannot be guaranteed by Internal Audit that systems will be error free. This is a management responsibility.

Audit coverage will be achieved by a combination of strategic, operational and compliance audits. Strategic audits will focus on the extent to which risk management, control and governance arrangements are well directed, whilst performance audits will cover the extent to which these arrangements are working in practice, and compliance audits will assess the level of adherence to regulatory guidelines.

However, as there is only a small internal audit function it means that there are many challenges working on the different functional levels, commencing with strategic long term planning, development of a risk-based audit environment which is then translated into an annual operational plan through to administrative, reporting and secretariat roles.

50 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

Internal Audit will take account of previous assessments of systems and processes, the length of time since specific systems have been reviewed, our knowledge of the strengths, weaknesses, opportunities and threats (both internal and external) and other sources of assurance such as external audit.

Internal audit will review its plans annually to take account of revisions in the risk assessment, enable new developments to be taken into account and allow for the plan to be rolled forward appropriately.

TYPES OF INTERNAL AUDITS UNDERTAKEN

In general internal audit function undertakes two types of audit.

1. Compliance audits – which assess whether the operation under review are complying with legislative requirements, government or entity policy and procedures and systems of internal control; and

2. Performance Improvement audits – which are aimed at improving the efficiency and effectiveness of the programme or operations under review.

Assessing performance provides accountability as well as helping to improve the efficiency and effectiveness of the internal audit function.

To enable this assessment and to better understand the work performed by the Internal Auditor, the work completed has been divided into four categories. These four categories are designed to reflect the actual work performed by Internal Auditor.

1. Internal Audits – includes reviews of policy, programmes, operations, internal controls, management information, governance frameworks and ICT systems as well as reviews of all the activities covered, including compliance with relevant legislation;

2. Internal Audit Support Activities – all activities that support the Internal Audit function; that is, the Internal Audit Quarterly Status reports, the development and maintenance of the Internal Audit Strategic Plan, the development of an Internal Audit Annual Work Plan, development of annual Internal audit report to the Audit Committee, secretariat duties and support to the Audit Committee members, attendance at Local Government Internal Audit Network meetings, reporting to the Audit Committee, training and administration;

3. Consultancy activities – advice to staff and management on policy, procedures, processes, documentation and providing assistance as required as well as the provision of internal audit and fraud related; and

51 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

4. Non-Audit Activity – this covers all aspects of non-audit related work and meetings as well as participation in some non-specific audit activities. As the internal audit function that is only a sole practitioner there may from time to time be a greater call on the Internal Auditor to become involved in non-audit activity. This includes corporate training not specifically related to internal audit, and involvement in in-house programs for example - the mentoring program.

INTERNAL AUDITS COMPLETED DURING 2017/18

Audit Title Area of focus Hours

Overall Focus Audits for the current year

Annual Performance Plan review (incl. Quarterly reporting)

Contract Management (incl. Performance management review)

Human Capital Audit (incl. Performance Management)

Budget Controls

Annual Financial Statement Review

Annual Performance Report Review

Annual Report Review (2016/17)

Operational Control (ERP system)

Research Service Support

Public Participation, Petition procedure

Hansard Transcript

INTERNAL AUDITS ALLOCATED WORK SCHEDULE

Resource allocation as a percent of available time.

Resource Allocated by Activities as % of Total Available Resource Hours %

Audits 99 56%

Related Audit work 60 34%

Professional Development 0 0%

Non related Audit activities 11 6%

Total 178 100%

52 INTERNAL AUDIT ANNUAL REPORT 10

Internal Audits allocated work schedule

Resource allocation as a percent of available time.

Resource Allocated by Activities as % of Total AvailableNORTHERN Resource CAPE PROVINCIAL Hours LEGISLATURE, % VOTE 2 Audits 99 56% Related Audit work 60 34% Professional Development 0 0% Non related Audit activities 11 6% Total 178 100%

Resource Allocation

Audits Related Audit work Professional Development 6% 4% Non related audit work

34% 56%

Looking forward LOOKINGThe aim FORWARD of Internal Audit is to assist the Provincial Legislature to develop a sound system of internal control throughout all aspects of the institutes operations and to achieve excellence The aim of Internal Audit is to assist the Provincial Legislature to develop a sound system of internal controlin throughoutgovernance. all Thisaspects is anof theongoing institutes body operations of work andwith to the achieve internal excellence auditor incontinuing governance. to This isworking an ongoing in a collaborative body of work partnership with the internalwith NCPL’s auditor staff continuing and management. to working in a collaborative partnership with NCPL’s staff and management.

AUDIT COMMITTEE

Role

The Audit Committee does not replace or change management accountability arrangements; it does, however, enhance the governance framework by providing Executive Authority and the Executive Managers with independent assurance and assistance in the areas of risk management, internal control, governance and financial reporting.

An effective committee has the potential to strengthen the control environment (of which it is part) and assist the Secretary to the Legislature to fulfil their stewardship, leadership and control responsibilities.

53 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

This report is intended to provide a broad understanding of the role of the Audit Committee. In offering this report, the following key points are addressed at Audit Committee Meetings: • the background of the Audit Committee members, having a mixture of skills including auditing, accounting and risk • not just looking at financial statements and internal controls • ensuring systems of internal control are adequate and are applied by staff in practice • considering External Audit coverage, timing and recommendations • that the overall coverage possible by the Internal Auditor is limited by resource availability • internal audit provides assurance to Audit Committee and management • a program of meetings which review • Risk Management Plan; • Business Continuity Plan; • Fraud and Corruption Plan; • Financial Plan; • Quality Assurance; • regulatory matters; • implementation of recommendations; • adequacy of Management responses, and • the importance of planned turnover in audit committee membership.

Matters of concern raised to the Committee:

1. It is traditional that the Financial Statements are presented to the Audit Committee for review prior to submitting to the Office of the Auditor General. This is not done effectively at the Legislation.

54 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

Membership

Membership of the Audit Committee is made up of three external members with the role of Chair being allocated to Adv. J Lubbe (SC).

In addition, the Secretary to the Legislature, Mr PB Moopelwa, Executive Managers and the Internal Auditor Mr T Shongwe attends each of the meetings. Invitations are extended to the external auditors and staff as required.

Issues before the Audit Committee

Issues before the Audit Committee during this reporting period included:

Internal Audit Charter; • business processes and systems of internal control; • status of audits and monitoring the implementation of audit recommendations from current and previous year’s audits through the Audit Recommendations Tracking Report; • audits completed (external and internal) and their findings; • ongoing and miscellaneous matters; • approval of Key Performance Indicators for the Internal Auditor • review of internal audit activity tools; • emerging risks; • business continuity; • financial statements/ performance report; and • fraud control.

Attendance register for Audit Committee meetings 2018/2017

The Audit Committee Charter requires the Committee to meet at least four times per year, with one of these meetings to include review and endorsement of the annual audited financial reports and external audit opinion.

55 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

Audit Committee / Attendance

Audit Committee Qualifications Role Attended attendees Adv. J Lubbe (SC) Senior Advocate Audit Committee 5 (B. Juris LLB) Chairperson Adv. N Van Heerden Advocate (BA LLB) Audit Committee Member 4 Mr J Besnaar Chartered Accountant CA(SA) Audit Committee Member 3

Audit Committee Annual Schedule of work

The Audit Committee has an annual schedule of work which it measures its roles and responsibilities against the Audit Committee Charter. This is detailed as follows

AC Roles and Responsibilities as per AC Charter Regularly/ As N/A Annually required Objective Provide independent assurance and assistance to NCPL 4 on risk management, control, governance and external accountability responsibilities Authority Discuss any matters with the external auditor or other external 4 parties (subject to confidentiality considerations) Obtain external legal or other professional advice considered 4 necessary to meet its responsibilities including requesting their attendance at a meeting Responsibilities of Members Understand the relevant legislative and regulatory requirements 4 appropriate to NCPL Contribute the time needed to study and understand the papers 4 provided Apply good analytical skills, objectivity and good judgement 4 Administrative arrangements AC committee meets at least 4 time per year - one of these 4 meetings to review and endorse annual audited financial statements and external audit opinion AC to agree forward meeting plan 4 Conflicts of interest must be declared at start of each meeting 4 Chair of AC to initial review of performance of committee at 4 least every 2 years on self-assessment basis Audit Committee Charter review at least every 2 years 4 AC may consider any other matter deemed of sufficient 4 importance to do so

56 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

AC Roles and Responsibilities as per AC Charter Regularly/ As N/A Annually required Any member of AC may request meeting with Chair of AC 4 Establish number of meetings for coming year 4 Establish planned work schedule for coming year 4 Risk Management Review whether management has in place a current and 4 comprehensive risk management framework and associated procedures for effective identification and management of business and financial risks including fraud Review whether a sound and effective approach has been 4 followed in developing strategic risk management plans for major projects or undertakings Review the impact of the risk management framework on its 4 control environment Review whether a sound and effective approach has 4 been followed in establishing business continuity planning arrangements, including whether plans have been tested periodically Control Framework Review whether management has adequate internal controls in 4 place, including over external parties such as contractors and advisors Review whether management has in place relevant policies 4 and procedures and these are periodically reviewed and updated Progressively review whether appropriate processes are in 4 place to assess whether policies and procedures are complied with Review whether appropriate policies and procedures are in 4 place for the management and exercise of delegations Assessment of financial information Satisfy itself the annual financial reports comply with applicable 4 Accounting Standards and supported by appropriate management sign-off on the statements and the adequacy of internal controls Review the external audit opinion, including whether 4 appropriate action has been taken in response to audit recommendations and adjustments Review the processes in place designed to ensure financial 4 information included in the annual report is consistent with the signed financial statements Satisfy itself there are appropriate mechanisms in place 4 to review and implement, where appropriate, relevant Government reports and recommendations

57 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

AC Roles and Responsibilities as per AC Charter Regularly/ As N/A Annually required Satisfy itself there is a performance management framework 4 linked to organisational objectives and outcomes Legislative Compliance Determine whether management has appropriately considered 4 legal and compliance risks as part of risk assessment and management arrangements Review the effectiveness of the system for monitoring 4 compliance with relevant laws, regulations and associated government policies Internal Audit Act as a forum for communications between the NCPL, 4 secretary to NCPL, senior management, internal audit and external audit Review the internal audit coverage and internal audit plan to 4 ensure the plan has considered the Risk Management Plan and approve the plan Consider the adequacy of internal audit resources to carry 4 out its responsibilities, including completion of the approved internal audit plan Review all audit reports and consider significant issues 4 identified in audit reports and action taken on issues raised, including identification and dissemination of better practices Monitor the implementation of internal audit recommendations 4 by management Periodically review the internal audit charter to ensure 4 appropriate organisational structures, authority, access and reporting arrangements are in place Periodically review the performance of Internal Audit 4 External Audit Provide input and feedback on the financial statement and 4 performance audit coverage proposed by external audit, and provide feedback on external audit services provided Consider significant issues raised in relevant external audit 4 reports and better practice guides and recommend actions that should be taken Reporting Internal audit performance report to audit committee provided 4 to AC each year Audit committee will report directly to Executive Authority at 4 least annually Executive Authority may request the Audit Chair to address 4 and to answer any enquiries regarding operation of Audit Committee

NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

9. AUDIT COMMITTEE REPORT

REPORT OF THE AUDIT COMMITTEE We are pleased to present this report for the financial year ended 31 March 2018 to the stakeholders of the Northern Cape Provincial Legislature.

This report is in compliance with the requirements of the Financial Management of Parliament and Provincial Legislature Act, Act 10 of 2009 and the King Code of Governance for South Africa 2016 (King IV).

AUDIT COMMITTEE MANDATE

The Audit Committee is governed by a formal Audit Committee Charter that has recently been reviewed and which incorporates all the requirements of the Act. This charter guides the committee in terms of its objectives, authority and responsibilities, both statutory and those assigned by the Executive Authority.

The Audit Committee recognises its important role as part of the management, corporate governance and internal control processes and procedures of the Provincial Legislature.

COMMITTEE COMPOSITION AND ATTENDANCE AT MEETINGS

The committee comprised of three (3) Independent Non-Executive Members. The following members served on the committee during the year under review:

NAME OF MEMBER DATE OF APPOINTMENT TO COMMITTEE

Adv. J. Lubbe 22 February 2018*

Mr J. Besnaar (CA) SA 22 February 2018*

Adv. N. van Heerden 12 February 2018* *Audit Committee Members appointment contract had been extended for the current year under review. This is line with the current reviewed Audit Charter.

Meeting attendance

Name Qualification Role No Meetings Attended Adv. J. Lubbe Senior Advocate (B. Juris LLB) Chairperson 5 Mr J. Besnaar CA (SA) Chartered Accountant Member 3 Adv. N. van Heerden Advocate (BA LLB) Member 4

The committee held four formal meetings during the 2017/18 financial year. In addition, the committee held an ad hoc meeting with the Speaker of Legislature, the Internal Auditor and the external auditors. The committee considered the draft Annual Financial Statements and Annual Performance Report prepared by Executive Management and recommended adoption to the Speaker of Legislature subject to certain amendments. The Audit Committee provided written reports to the Speaker of Legislature that summarise the committee’s findings 51and recommendations of the ad-hoc meetings. The Secretary to the Legislature, Executive Managers, Internal Auditor and the External Auditor and staff attended meetings invitation of the committee by regular invitation.

59 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

AUDIT COMMITTEE RESPONSIBILITY

We report that we have adopted appropriate formal terms of reference in our charter in line with the requirements of Sections 48 (1) of the Financial Management of Parliament and Provincial Legislature Act, Act 1 of 2009 (FMPPLA). We further report that we have conducted our affairs in compliance with this charter.

EFFECTIVENSS OF INTERNAL CONTROLS AND INTERNAL AUDIT

We are satisfied that the internal audit function is operating effectively and that it has addressed the risks pertinent to the Provincial Legislature in its audits. The Internal Audit completed their 2017/18 annual plan as approved by the Audit Committee.

The committee has approved the internal audit charter as well as the internal audit function’s annual audit plan for the financial year ended 31 March 2018. The internal audit has responsibility for reviewing and providing assurance on the adequacy of the internal control environment across all of the Legislatures’ operations. The internal auditor is responsible for reporting the findings of the internal audit work against the agreed internal audit plan to the committee on a regular basis. An internal Audit service is co-sourced with Pricewater Coopers (PWC). Capacity needs to be augmented in order to improve the quality of internal audit deliverables and to effectively deliver the Audit Committee’s mandate.

Based on the assessment of the system of internal controls conducted by internal audit, as well as information and explanations given by management and discussions held with the external auditor on the results of their audit, the committee is of the opinion that the Provincial Legislature’s system of internal financial controls is effective and forms a basis for the preparation of reliable financial statements in respect of the year under review. In addition, during the 2017 financial year, the committee was made aware of:

• Possible irregularities against the Accounting Officer and Other Senior Management (i.e. Chief Financial Officer); and

• Investigations by the Directorate of Priority Crime Investigations (Hawks) on possible irregularities in the Provincial Legislature.

We have met with the Speaker of Legislature and reported the alleged allegations in terms of Sec. 49 of the Financial Management of Parliament and Provincial Legislature Act (FMPPLA) to ensure that the matter is executed effectively and objectively (from Executive Management).

We are satisfied with the content and quality of quarterly reports prepared and issued by the internal auditors during the year under review.

RISK MANAGEMENT

The Provincial Legislature has a separate Risk Management Committee consisting of twelve (12) members including Chairperson who is an external candidate in line with the NCPL Risk Management Charter. The Committee plays oversight on internal controls risk, financial reporting risk and management’s compliance to the legislative framework.

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QUALITY REVIEW OF FINANCIAL MANAGEMENT AND QUARTELY REPORTS SUBMITTED BY THE ACCOUNTING OFFICER

We reviewed the quarterly submission of the status of financial management and performance report of the Provincial Legislature. We are satisfied with the content and quality of monthly and quarterly reports issued during the year under review.

QUALITY REVIEW OF FINANCIAL STATEMENTS AND PERFORMANCE REPORT

We reviewed the Annual Financial Statements and Annual Performance Report of the Provincial Legislature and we are satisfied that they comply with GRAP Reporting Standards and the requirements of FMPPLA.

We have: • Reviewed and discussed the audited annual financial statements to be included in the annual report, with the Auditor-General South Africa; internal auditor and the Accounting Officer; • Reviewed the Auditor-General of South Africa’s management letter and management’s response thereto; • Reviewed changes in accounting policies and practices; • Reviewed the institution’s compliance with legal and regulatory provisions; and • Reviewed significant adjustments and noted the effects of the adjustments from the external audit.

We concur with and accept the Auditor-General South Africa’s opinion on the Annual Financial Statements and Annual Performance Report, and are of the opinion that the statements should be accepted and read together with the report of the Auditor-General South Africa.

AUDITOR-GENERAL SOUTH AFRICA

The Provincial Legislature’s external auditor is the Office of the Auditor General South Africa. Fees paid to the auditor are detailed in note XX of the Annual Financial Statements.

The external auditor’s plan for the annual audit of the financial statements, which plan incorporates the identification of significant risks and how they are to be addressed during the audit, is presented and approved at a management meeting before the commencement of audit fieldwork.

The Audit Committee concurs with and accepts the conclusion of the AGSA report on the Annual Financial Statements and is of the opinion that the Audited Financial Statements be accepted and read together with the report of the AGSA.

APPROVAL OF THE REPORT

We confirm that the Audit Committee has functioned in accordance with its charter for the reporting period and that its report to stakeholders was approved by the Speaker to the Legislature on 24 August 2018.

Adv. J. Lubbe Chairman of the Audit Committee

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HPART U M A D N RESOURCE MANAGEMENT

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1. INTRODUCTION

The Human Capital unit in the Corporate Services Department has experienced a challenging year which included a high institutional vacancy rate and a limited departmental budget. The increase in the vacancy rate is due to labour turnover, and the fact that normal recruitment and selection process proved to be challenging due to various reasons. Human Capital is currently in the process of reducing the vacancy rate and ensuring that the vacant funded positions are permanently filled through recruitment and selection processes.

The Corporate Services Department is committed to a high standard of service delivery to Members and Employees of the Legislature and will continue to evolve and modernise HC Practices which are aligned with the Strategic direction of the Legislature.

2. OVERVIEW OF HUMAN CAPITAL

2.1 IMPLEMENTATION OF THE ORGANISATIONAL STRUCTURE

Due to the fact that the Legislature acknowledges and supports the importance to provide employees with the opportunity to grow and advance professionally, the advantage to retain valuable employees and build on the skills and knowledge of existing employees, the Legislature engaged NEHAWU on the possibility to consider re-looking the criteria for internal positions.

Intensive engagements took place between NEHAWU and the Legislature during the 2017/18 financial year. No progress was made in terms of coming to an amicable position between the Legislature and NEHAWU. For the sake of progress and the critical need to fill the vacant funded positions, the Legislature had no other alternative but to re-advertise the positions below salary grade C4 internally and externally for those positions above C4 in terms of the requirements as per the provisions of the Recruitment, Selection & Appointment Policy.

The recruitment and selection process for all vacant funded positions have commenced and we envisage to permanently fill most of the vacant funded positions.

2.2 BUILDING A LEARING CULTURE THROUGH APPROVED BURSARY APPLICATIONS

The Legislature supports the development and the retention of skilled human capital through a Bursary Scheme. The primary purpose of the bursary scheme is to target employees on the lower NQF levels, in compliance with the National Skills Development Strategy.

The Legislature awarded seventeen (17) bursaries to employees for the 2017/18 academic year. Offering of bursaries to employees further supports the Legislature objectives to ascertain that employees are trained, developed and skilled in various related areas.

53 63 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

The programmes registered for during the 2017/18 academic year were either a continuation from the previous academic year(s) and/or new registrations and included amongst others:

 BA Communication Science\ BCom.  B. Com Industrial & Organisational Psychology  Bachelor of Information Science  Bachelor of Administration Honours in Public Admin  BTech Project Management  NDip Human Resource  NDip Public Management  BA Commerce (Tax)  BA Hons: Linguistics

2.3 MEMBERS CAPACITY BUILDING PROGRAMME

Parliament and Provincial Legislatures under the banner of the Speakers Forum offers training and development opportunities to Members of Parliament and Provincial Legislatures. Two programmes are currently running concurrently through the University of the Witwatersrand (WITS) and the University of Johannesburg (UJ). The programme with WITS includes the following qualifications:

1st Phase: Graduate Certificate in Governance and Leadership – internally benchmarked at NQF Level 7 by WITS University in line with standards and principles of the Higher Education Qualifications Framework – all fifteen Members who enrolled for the aforementioned programme graduated on 21 April 2017.

2nd Phase: Post Graduate Diploma in Governance and Public Leadership – the Post Graduate Diploma is registered with South African Qualifications Authority at NQF Level 8 and includes the following modules inclusive of one elective: i. Public Policy ii. Public Finance & Performance Budgeting iii. Governance, Leadership & Public Value iv. Decision Making Methods v. International Relations & Diplomacy vi. Political Economy of Development vii. One Elective

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Eleven Members qualified to register for the aforementioned qualification, which commenced during January and September 2017 respectively. Of the eleven Members, five are Members of the Executive Council (MEC). The anticipated completion date is September / October 2018.

3rd Phase: Masters Programme – registered with the South African Qualifications Authority at NQF level 9. Achievement of 65% and above for all modules will contribute to consideration of applications for the Masters Programme at the WITS School of Governance.

2.3.2 The programme through the University of Johannesburg includes a Continuation Education Programme (CEP) of which a minimum requirement of 50% enables entry into the Post Graduate Diploma. This programme is intended for Policy Leaders from different spheres such as Parliamentarians, Policy researchers and Analysts and includes the following modules: i. Research Practice; ii. Industrial Policy; iii. Transitional Justice; and iv. Strategic Diplomacy

Two Members successfully registered and completed the CEP programme in April 2018, while other two Members are registered for the Post Graduate Diploma which is anticipated to conclude in September 2018.

Hon Members continue to show commitment and dedication to the Programme amidst their hectic Legislature and Party Political business.

2.4 EMPLOYEE WELLNESS

The Northern Cape Provincial Legislature undertook to put the necessary support structures and programmes in place to address employee problems which have the potential to hinder their work performance. This was done by partnering with Careways group for Employees and Members Assistance Programme.

The utilization rate of the programme as per the quarterly reports was very good, and it is encouraging to note that the EWP has consistently been accessed by employees and dependants.

Compared to the previous annual period, as well as the government Sector benchmark for the most recent annum, During January to December 2017 a total of 17 cases were managed, yielding a utilisation rate of

55 65 NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

10.63%. The utilisation rate achieved during the most recent annual period is lower than the previous annual period but above the Corporate Sector benchmark for the current review period, which is encouraging.

In addition to the quest for healthy life style on the 4th of August 2017 the Legislature hosted a successful wellness days at AR Abass stadium where employees enjoyed a full day of fun and games.

Furthermore, the Northern Cape Provincial Legislature employees including Members took part in the Inter Legislative Sector Games hosted by the North West Provincial Legislature on the 24-26 November 2017 in Rustenburg.

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 2017 and 31 March 2018 Programme Total Personnel No. of Training Professiona Personnel Average expenditure expenditure e’e expenditure l and expenditure personnel (R’000) (R’000) (R’000) special as a % of cost per services total employee expenditure expenditure (R’000) (R’000)

Administration 79, 895 43,829 75 592, 256 789, 677 54.9% 584

Members 48, 079 7,976, 25 - - 16.6% 319 Facilities

Parliamentary 42, 693 33,205 47 - 3, 000 77.8% 706 Services

Total 170, 667 85, 010 147 592, 256 792, 677 49.8% 578

NOTE: The above Personnel Expenditure total reflects actual expenditure in terms of personnel cost based on information extracted from PERSAL. The amount however does not balance with an amount of R342,000 in terms of the BAS Report.

Further note that fixed-term contract employees are included in the personnel expenditure in Administration and are therefore included in the number of employees for that Programme.

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Table 3.1.2 Personnel costs by salary band for the period 1 April 2017 and 31 March 2018 Salary band Personnel % of total No. of Average expenditure personnel cost employees personnel (R’000) cost per employee (R’000) Lower Skilled (Grade A1–A2) 241 0.3% 1 241

Skilled (Grade A3–B2) 4, 628 5.4% 16 289 Highly skilled production (Grade B3–C1) 17, 051 20.1% 40 426 Highly skilled supervision (Grade C2–D1) 33, 164 39% 47 706 Senior Management and Top 21 950 26% 18 Management(Grade D2–E3) 1219

Other (Public Party Support Services) 7, 976 9.4% 25 319

Total 85, 010 100.00% 147 578

Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the period 1 April 2017 and 31 March 2018 Salaries Overtime Home Owners Medical Aid Allowance Programme Amount Salaries as Amount Overtime Amount HOA as a Amount Medical (R’000 a % of (R’000) as a % of (R’000) % of (R’000) aid as a % personnel personnel personnel of costs costs costs personnel costs Administration 32, 984 39% - - 1, 758 2.1% 1, 362 1.60%

Members Facilities 7, 261 8.5% - - 26 0.03% 25 0.03%

Parliamentary 21, 294 25.1% - - 1, 522 1.79% 2, 161 2.54% Services Total 61, 539 72.4% - - 3, 306 3.89% 3, 548 4.17%

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Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the period 1 April 2017 and 31 March 2018 Salaries Overtime Home Owners Medical Aid Salary band Allowance Amount Salaries as Amou Overtime as Amount HOA as a Amount Medical (R’000) a % of nt a % of (R’000) % of (R’000) aid as a % personnel (R’000 personnel personnel of costs ) costs costs personnel costs Lower Skilled 145 0.2% - - 27 0.03% 25 0.03% (Grade A1-A2)

Skilled (Grade 3, 353 3.9% - - 314 0.37% 337 0.40% A3-B2)

Highly skilled 13, 309 15.7% - - 679 0.80% 1023 1.20% production (Grade B3-C1)

Highly skilled 24, 282 28.6% - - 962 1.13% 1, 696 2.00% supervision (Grade C2-C4)

Senior 13, 189 15.5% - - 1, 298 1.53% 442 0.52% Management (Grade D1-E2)

Other (Public 7, 261 8.54% - - 26 0.03 25 0.03% Party Support Services)

Total 61, 539 72.39% - - 3, 306 3.89% 3, 548 4.17%

3.2 Employment and Vacancies

Table 3.2.1 Employment and vacancies by programme as on 31 March 2018 Programme Number of Number of Vacancy Rate Number of posts on posts filled employees approved additional to the establishment establishment Administration 95 53 44.2% 19

Members Facilities - - - 23

Parliamentary Service 64 43 32.8% 2

Total 159 96 39.6% 44

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Table 3.2.2 Employment and vacancies by salary band as on 31 March 2018 Salary band Number of posts Number of Vacancy Rate Number of on approved posts filled employees establishment additional to the establishment Lower Skilled (Grade A1-A3) 10 8 20% 2

Skilled (Grade B1-B5) 51 31 39.2% 21

Highly skilled production (Grade C1–C5) 77 43 44.2% 18

Highly skilled supervision (Grade D1-D3) 15 10 33.3% 3

Managers (D4 – E1) 5 3 40% 2

Secretary to the Legislature 1 1 -

Total 159 96 39.6% 44

Table 3.2.3 Employment and vacancies by critical occupations as on 31 March 2018 Critical occupation Number of posts Number of Vacancy Rate Number of on approved posts filled employees establishment additional to the establishment Executive Manager: Corporate Services 1 0 100% -

Executive Manager: Committees, Research & 1 0 100% - Information Services, Public Education & Communication Manager: Risk, Monitoring & Evaluation 1 0 100% -

Manager: Human Capital 1 0 100% -

Manager: Finance 1 0 100% 1

Manager: Committees 1 0 100% 1

Internal Auditor 2 0 100% 1

PA to the Secretary 1 0 100% 1

Executive Secretary – CFO’ s Office 1 0 100%% 1

Financial Accountant 1 0 100% 1

Accounts Officer 3 2 66.67% -

Accounts Administrator 6 4 66.67% 2

Demand & Acquisitions Coordinator 1 0 100% -

Asset & Disposal Officer 1 0 100% 1

Logistics & Transport Officer 1 0 100% 1

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Facilities Supervisor 1 0 100% 1

Network Administrator 3 1 33.33% -

Senior Human Capital Practitioner 1 0 100% 1

Security Officer 1 0 100% -

Private Secretary 1 1 0% -

Filing Clerk 2 1 50% 1

Total 32 9 33.33% 13

3.3 Filling of SMS Posts

Table 3.3.1 SMS post information as on 31 March 2018 SMS Level Total number Total number % of SMS posts Total number of % of SMS posts of funded of SMS posts filled SMS posts vacant SMS posts filled vacant Secretary to the Legislature 1 1 100% 0 0% (E4) Executive Managers (D4 - 5 3 40% 2 60% E2) 15 10 66.7% 5 33.3% Managers (D1 – D3)

21 15 66.7% 7 33.3% Total

Table 3.3.2 SMS post information as on 31 March 2018 SMS Level Total number Total number % of SMS posts Total number of % of SMS posts of funded of SMS posts filled SMS posts vacant SMS posts filled vacant Secretary to the Legislature 1 1 100% 0 0% (E4) Executive Managers (D4 - 5 3 40% 2 60% E2) 15 10 66.7% 5 33.3% Managers (D1 – D3)

21 15 66.7% 7 33.3% Total

Table 3.3.3 Advertising and filling of SMS posts for the period 1 April 2017 and 31 March 2018 SMS Level Total number Total number % of SMS posts Total number of % of SMS posts of funded of SMS posts filled SMS posts vacant SMS posts filled vacant Secretary to the Legislature 1 1 100% 0 0% (E4) Executive Manager s (D4 - 5 3 40% 2 60% E2) Managers (D1 – D3) 15 10 66.7% 5 33.3% Total 21 15 66.7% 7 33.3%

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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 2017 and 31 March 2018 Reasons for vacancies not advertised within six months n/a

Reasons for vacancies not filled within six months n/a

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 2017 and 31 March 2018 Reasons for vacancies not advertised within six months n/a

Reasons for vacancies not filled within six months n/a

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.

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3.4 Job Evaluation

Table 3.4.1 Job Evaluation by Salary band for the period 1 April 2017 and 31 March 2018 Salary band Number of Number of % of posts Posts Upgraded Posts downgraded posts on Jobs evaluated Number % of posts Number % of posts approved Evaluated by salary evaluated evaluated establishment bands Lower Skilled 10 ------(Grade A1-A3)

Skilled (Grade B1- 51 ------B5)

Highly skilled 77 ------production (Grade C1–C5)

Highly skilled 15 ------supervision (Grade D1-D3)

Managers (D4 – E1) 5 ------

Secretary to the 1 ------Legislature

Total 159 ------

Table 3.4.2 Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2017 and 31 March 2018 Gender African Asian Coloured White Total Female - - - - - Male - - - - - Total - - - - - Employees with a disability -

Table 3.4.3 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2017 and 31 March 2018

Occupation Number of Job evaluation level Remuneration Reason for deviation employees level - - - - - Total number of employees whose salaries exceeded the level determined by job evaluation - Percentage of total employed -

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Table 3.4.4 Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2017 and 31 March 2018

Gender African Asian Coloured White Total Female - - - - - Male - - - - - Total - - - - -

Employees with a disability - - - - -

Total number of Employees whose salaries exceeded the grades determine by job evaluation None

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 2017 and 31 March 2018

Salary band Number of Appointments Terminations Turnover employees at and transfers and transfers out rate beginning of into the of the period - 1 April department department 2017 Lower Skilled (Grade A1-A3) 9 - 1 11.1%

Skilled (Grade B1-B5) 32 - 1 3.1%

Highly skilled production (Grade C1-C5) 46 - 3 6.5%

Managers (Grade D1-D3) 10 - - -

Exec Management (Grade D4-E1) 3 - - -

Secretary to the Legislature 1 - - -

Contracts 21 1 1 4.6%

Total 122 1 6 4.9%

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Table 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2017 and 31 March 2018

Critical Occupation Number of Appointments Terminations Turnover employees at and transfers into and transfers rate beginning of the department out of the period- 1 April 2017 department Committee Coordinator 8 - 1 12.5% Security Official 7 - 1 14.2% Interpreter 2 - 1 50% Demand Officer 1 - 1 100% Registry Clerk 1 - 1 - Manager: Risk & Monitoring & 1 - 1 100% Evaluation Filing Clerk 1 1 - - Total 21 1 6 26.1%

Table 3.5.3 Reasons why staff left the department for the period 1 April 2017 and 31 March 2018

Termination Type Number % of Total Resignations Death - - Resignation 4 66.7% Expiry of contract - - Dismissal – operational changes - - Dismissal – misconduct 1 16.7% Dismissal – inefficiency - - Discharged due to ill-health 1 16.7% Retirement - - Transfer to other Public Service Departments - - Other - Total 6 100% Total number of employees who left as a % of total 4.88% employment

Table 3.5.4 Promotions by critical occupation for the period 1 April 2017 and 31 March 2018

Occupation Employees 1 Promotions Salary level Progressions to Notch progression as July 2017 to another promotions as a % another notch a % of employees by salary level of employees by within a salary occupation occupation level ------TOTAL - - - - -

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Table 3.5.5 Promotions by salary band for the period 1 April 2017 and 31 March 2018

Salary Band Employees Promotions Salary bands Progressions Notch 1 April 2017 to another promotions as to another progression as salary level a % of notch within a a % of employees by salary level employees by salary level salary bands Lower Skilled (A1 – A2) - - - - - Skilled (A3 – B2) - - - - - Highly skilled production (B3–C1) - - - - - Highly skilled supervision - - - - - (C2 – C3) Senior Management & Managers - - - - - (D1 – E3) Total - - - - -

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 2018

Occupational category Male Female Total African Coloured Indian White African Coloured Indian White Top Management 1 0 0 0 0 0 0 0 1 (E2 – E4)

Senior Management (D4 – E1) 1 1 0 0 0 0 0 1 3

Professionally qualified & 3 4 0 0 0 3 0 0 10 experienced specialists and mid-management (D1 – D3) Skilled technical & 17 3 0 0 17 4 0 2 43 academically qualified workers, junior manag, supervisors, foreman & superintendents (C1 – C5) Semi-skilled & discretionary 8 2 0 0 13 6 1 1 31 decision making (B1 – B5)

Unskilled & defined decision 1 2 0 0 4 1 0 0 8 making (A2 – A3)

Contracts 5 2 1 1 8 4 - 0 21

Total 36 14 1 1 42 18 1 4 117

Employees with disabilities ------

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Table 3.6.2 Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2018

Occupational category Male Female Total African Coloured Indian White African Coloured Indian White Top Management 1 0 0 0 0 0 0 0 1 (E2 – E4) Senior Management (D4 1 1 0 0 0 0 0 1 3 – E1)

Professionally qualified & 3 4 0 0 0 3 0 0 10 experienced specialists and mid-management (D1 – D3)

Skilled technical & 17 3 0 0 17 4 0 2 43 academically qualified workers, junior manag, supervisors, foreman & superintendents (C1 – C5)

Semi-skilled & 8 2 0 0 13 6 1 1 31 discretionary decision making (B1 – B5)

Unskilled & defined 1 2 0 0 4 1 0 0 8 decision making (A2 – A3) Contracts 5 2 1 1 8 4 - 0 21

Total 36 14 1 1 42 18 1 4 117

Employees with ------disabilities

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Table 3.6.3 Recruitment for the period 1 January 2018 to 31 March 2018

Occupational band Male Female Total African Coloured Indian White African Coloured Indian White Top Management ------(E2 – E3)

Snr Management (D4 ) ------Professionally ------qualified & experienced specialists and mid- management (D1 – D2) Skilled technical & ------academically qualified workers, Junior management, supervisors, foreman & superintendents (C1 –C4) Semi-skilled & ------discretionary decision making (B1 – B4) Unskilled & defined ------decision making (A2– A3) Temporary employees 1 ------1 Total 1 ------1

Employees with ------disabilities

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Table 3.6.4 Promotions for the period 1 January 2018 to 31 March 2018

Occupational band Male Female Total African Coloured Indian White African Coloured Indian White Top Management ------Senior Management ------Professionally qualified ------and experienced specialists and mid- management Skilled technical and ------academically qualified workers, junior management, supervisors, foreman and superintendents Semi-skilled and ------discretionary decision making Unskilled and defined ------decision making Total ------Employees with ------disabilities

Table 3.6.5 Terminations for the period 1 January 2018 to 31 March 2018

Occupational band Male Female Total African Coloured Indian White African Coloured Indian White Top Management ------Senior Management ------Professionally qualified & ------experienced specialists and mid-management Skilled technical & 1 - - - - 1 - - 2 academically qualified workers, junior management, supervisors, foreman & superintendents Semi-skilled & 1 ------1 2 discretionary decision making Unskilled & defined - 1 ------1 decision making

Contracts - - - - 1 - - - 1

Total 2 1 - - 1 1 - 1 6

Employees with ------disabilities

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Table 3.6.6 Disciplinary action for the period 1 April 2017 and 31 March 2018 Disciplinary action Male Female Total African Coloured Indian White African Coloured Indian White Dismissal 1 ------1 Demotion 1 ------1 ------Total 2 ------2

Table 3.6.7 Skills development for the period 1 April 2017 and 31 March 2018 Occupational category Male Female Total African Coloured Indian White African Coloured Indian White Legislators, senior - 1 ------1 officials and managers Professionals 2 1 ------3 Technicians and - 1 - - 3 1 - - 5 associate professionals Clerks - - - - 2 - - - 2 Service and sales ------workers Skilled agriculture and ------fishery workers Craft and related trades ------workers Plant and machine ------operators and assemblers Elementary occupations ------Total 2 3 5 1 11 Employees with ------disabilities

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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 March 2018 SMS Level Total number of Total number of Total number of Signed performance funded SMS posts SMS members signed agreements as % of performance total number of SMS agreements members Secretary to the Legislature 1 1 1 100% (E4) Chief Financial Officer (E1) 1 1 1 100%

Senior Managers (D4-D5) 4 4 4 100%

Total 6 6 6 100%

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 20ZZ.

Table 3.7.2 Reasons for not having concluded Performance agreements for all SMS members as on 31 March 2018 Reasons n/a

Notes

 The reporting date in the heading of this table should be aligned with that of Table 3.7.1.

Table 3.7.3 Disciplinary steps taken against SMS members for not having concluded Performance agreements as on 31 March 2018 Reasons n/a

Notes

 The reporting date in the heading of this table should be aligned with that of Table 3.7.1. 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.

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Table 3.8.1 Performance Rewards by race, gender and disability for the period 1 April 2017 and 31 March 2018 Beneficiary Profile Cost Race and Gender Number of Number of % of total within Cost Average cost beneficiaries employees group (R’000) per employee

African - - - - - Male - - - - - Female - - - - - Asian - - - - - Male - - - - - Female - - - - - Coloured - - - - - Male - - - - - Female - - - - - White - - - - - Male - - - - - Female - - - - - Total - - - - -

Table 3.8.2 Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2017 and 31 March 2018 Beneficiary Profile Cost Total cost as a % Salary band Number of Number of % of total Total Cost Average of the total beneficiaries employees within salary (R’000) cost per personnel bands employee expenditure

Lower Skilled (Levels A1------A2) Skilled (level A3-B2) ------

Highly skilled production ------(level B3-C1) Highly skilled supervision ------(level C2-D2) ------Total

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Table 3.8.3 Performance Rewards by critical occupation for the period 1 April 2017 and 31 March 2018

Beneficiary Profile Cost Critical occupation Number of Number of % of total within Total Cost Average cost beneficiaries employees occupation (R’000) per employee ------Total - - - - -

Table 3.8.4 Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2017 and 31 March 2018 Beneficiary Profile Cost Total cost as a % Salary band Number of Number of % of total Total Cost Average cost per of the total beneficiaries employees within salary (R’000) employee personnel bands expenditure

Band A ------Band B ------Band C ------Band D ------Total ------

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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 2017 and 31 March 2018 Salary band 01 April 2017 30 June 2017 Change Number % of total Number % of total Number % Change Lower skilled ------

Highly skilled production ------(Lev. 6-8) Highly skilled supervision ------(Lev. 9-12) Contract (level 9-12) ------Contract (level 13-16) ------Total ------

Table 3.9.2 Foreign workers by major occupation for the period 1 April 2017 and 31 March 2018 Major 01 April 2017 31 March 2018 Change occupation Number % of total Number % of total Number % Change ------

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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 April 2017 to 31 March 2018 Salary band Total No Days with Number of % of total Average Estimated days Medical Employees employees days per Cost (R’000) certification using sick using sick employee leave leave Unskilled & defined decision 39 10 7 100% 5.57 28 128.14 making (A1-A3) Semi-Skilled and Discretionary 348 89 38 92.68% 9.16 374 170.47 Decision Making (B1-B5) Skilled Tech & academically 430 85 44 84.62% 9.77 808 037.89 qualified Junior Man (Grade C1 -C5) Professionally qualified, 64 18 11 84.62% 5.82 203 465.03 experienced specialists and mid management (D1 to D3) Executive Management (D4 to 5 2 2 66.67% 2.5 20 528.79 E1) Top Management (E2 –E4 3 2 1 100% 3 16 480.46

Total 889 206 103 88.04% 8.63 1 450 810.78

Table 3.10.2 Disability leave (temporary and permanent) for the period 1 April 2017 and 31 March 2018 Salary band Total days % Days with Number of % of total Average Estimated Medical Employees employees days per Cost certification using using employee (R’000) disability disability leave leave Lower Skills (Grade A1-A2) ------Skilled (Grade A3-B2) ------Highly skilled production (Grade ------B3-C1) Highly skilled supervision ------(Grade C2-C4) Top and Senior management ------(Grade D1-E3) Total ------

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.

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Table 3.10.3 Annual Leave for the period 1 April 2017 to 31 March 2018 Salary band Total days taken Number of Employees using Average per employee annual leave Unskilled & defined decision making (A1- 168 7 24 A3) Semi-Skilled and Discretionary Decision 1087 41 26.51 Making (B1-B5) Skilled Tech & academically qualified 1431 52 27.52 Junior Man (Grade C1 -C5) Professionally qualified, experienced 434 13 33.38 specialists and mid management (D1 to D3) Executive Management (D4 to E1) 88 3 29.33

Top Management (E2 –E4) 29 1 29

Total 3237 117 27.67

Table 3.10.4 Capped Leave for the period 1 April 2017 to 31 March 2018 Salary band Total days of Number of Average Average capped capped leave Employees number of days leave per taken using capped taken per employee as on leave employee 31 March 2018

Unskilled & defined decision making (A1-A3) 0 0 0 0

Semi-Skilled and Discretionary Decision Making - - - - (B1-B5) Skilled Tech & academically qualified Junior Man 2 1 2 2 (Grade C1 -C5)

Professionally qualified, experienced specialists and 0 0 0 0 mid management (D1 to D3)

Executive Management (D4 to E1) 0 0 0 0

Top Management (E2 –E4) 0 0 0 0

Total 2 1 2 2

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Table 3.10.5 Unpaid Leave for the period 1 April 2017 to 31 March 2018 Salary band Total days of No of Employees Average per Taken using Annual employee Leave Unskilled & defined decision making (A1-A3) 7 7 1.00

Semi-Skilled and Discretionary Decision Making (B1-B5) 23 16 1.44

Skilled Tech & academically qualified Junior Man (Grade C1 - 63 16 3.93 C5) Professionally qualified, experienced specialists and mid 5 1 5.00 management (D1 to D3) Executive Management (D4 to E1) 0 0 0.00

Top Management (E2 –E4) 0 0 0.00

Total 98 40 2.45

Table 3.10.6 Annual Leave for the period 1 April 2017 to 31 March 2018 Reason Total amount Number of Average per (R’000) employees employee (R’000) Leave payout for due to non-utilisation of leave for the - - - previous cycle Capped leave payouts on termination of service - - - Current leave payout on termination of service 106 258.45 5 21 251.69 Total 106 258.45 5 21 251.69

3.11 HIV/AIDS & Health Promotion Programmes

Table 3.11.1 Steps taken to reduce the risk of occupational exposure Units/categories of employees identified to be at high risk of contracting HIV Key steps taken to reduce the & related diseases (if any) risk - - - -

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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. Have the Legislature designated a member of the SMS x Not applicable to implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and positions.

2. Does the Legislature have a dedicated unit or have you x Executive Manager: Corporate designated specific staff members to promote the Services & Manager: Human Capital health and well being of your employees? If so, indicate Management the number of employees who are involved in this task and the annual budget that is available for this purpose. 3. Have the Legislature introduced an Employee x As and when required Assistance or Health Promotion Programme for your Counselling employees? If so, indicate the key elements/services of Rehabilitation this Programme Wellness Days 4. Have the Legislature established (a) committee(s) as x Not applicable contemplated in Part VI E5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please provide the names of the members of the committee and the stakeholder (s) that they represent.

5. Have the Legislature reviewed the employment policies x Code of Good Practice for HIV/AIDS and practices of the Legislature to ensure that these do Incapacity due to Ill Health Policy not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/procedures so reviewed.

6. Have the Legislature introduced measures to protect x Included Code of Good Practice for HIV-positive employees or those perceived to be HIV- HIV/AIDS positive from discrimination? If so, list the key elements of these measures. 7. Do the Legislature encourage its employees to undergo x No voluntary Counselling and Voluntary Counselling and Testing? If so, list the results Testing for this reporting period that you have achieved. 8. Have the Legislature developed measures/indicators to x The Legislature receives quarterly monitor & evaluate the impact of your health promotion reports from Careways which programme? If so, list these measures/indicators. outlines the Problem profile, utilisation, referrals , service accessed and demographics

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3.12. Labour Relations

Table 3.12.1 Collective agreements for the period 1 April 207 and 31 March 2018 Subject matter Date Collective Agreement signed for the period 1 April 2017 – 31 March 2018 18 August 2017

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 2017 and 31 March 2018 Outcomes of disciplinary hearings Number % of total Correctional counselling - - Verbal warning - - Written warning - - Final written warning - - Suspended without pay - - Fine - - Demotion 1 50% Dismissal 1 50% Not guilty - - Case withdrawn - - Total 2 100%

Table 3.12.3 Types of misconduct addressed at disciplinary hearings for the period 1 April 2017 and 31 March 2018 Type of misconduct Number % of total Assault - -

Dereliction of duties/Insubordination 1 50%

Unauthorised Absence 1 50%

Misuse of Legislature property/Accounts - -

Negligence - -

Total 2 100%

Table 3.12.4 Grievances logged for the period 1 April 2017 and 31 March 2018 Grievances Number % of Total Number of grievances resolved 2 50% Number of grievances not resolved 2 50% Total number of grievances lodged 4 100%

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Table 3.12.5 Disputes lodged with Councils for the period 1 April 2014 and 31 March 2015 Disputes Number % of Total Number of disputes upheld - - Number of disputes dismissed - - Number of disputes settled 1 33.3% Number of disputes in progress 2 66.7% Total number of disputes lodged 3 100%

Table 3.12.6 Strike actions for the period 1 April 2017 and 31 March 2018 Total number of persons working days lost 33 Total costs working days lost 1 day Amount recovered as a result of no work no pay (R’000) R46 536.00

Table 3.12.7 Precautionary suspensions for the period 1 April 2017 and 31 March 2018 Number of people suspended - Number of people who’s suspension exceeded 30 days - Average number of days suspended - Cost of suspension(R’000) -

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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 2017 and 31 March 2018 Occupational category Gender Number of Training needs identified at start of the reporting period employees as Learnerships Skills Other forms Total at 1 April Programmes & of training 2017 other short courses Top Management Female - - - - -

Male 1 - - - -

Senior Management Female 1 - - - -

Male 2 - - - -

Professionally Qualified, Female 3 - - - - Experienced Specialists and Mid Management Male 7 - 1 - 1

Skilled Tech & Female 25 - 1 - 1 Academically qualified Male 21 - 2 - 2

Semi – Skilled and Female 21 - 1 - 1 Discretionary Decision Making Male 11 - - - -

Unskilled & Defined Female 5 - 3 - 3 Decision Making Male 4 - 3 - 3

Temporary/Contract Female 13 - - - - Employees Male 8 - - - -

Sub Total Female 68 - 5 - 5

Male 54 - 6 - 6

Additional to the Female - - - - - Establishment Male - - - - -

- -

Total 122 - 11 - 11

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Table 3.13.2 Training needs identified for the period 1 April 2017 and 31 March 2018 Occupational category Gender Number of Training needs identified at start of the reporting period employees as Learnerships Skills Other forms Total at 1 April Programmes & of training 2017 other short courses Top Management Female - - - - -

Male 1 - - - - Senior Management Female 1 - - - -

Male 2 - - - - Professionally Qualified, Female 3 - - - - Experienced Specialists and Mid Management Male 7 - 1 - 1

Skilled Tech & Female 25 - 1 - 1 Academically qualified Male 21 - 2 - 2 Semi – Skilled and Female 21 - 1 - 1 Discretionary Decision Making Male 11 - - - -

Unskilled & Defined Female 5 - 3 - 3 Decision Making Male 4 - 3 - 3 Temporary/Contract Female 13 - - - - Employees Male 8 - - - - Sub Total Female 68 - 5 - 5

Male 54 - 6 - 6 Additional to the Female - - - - - Establishment Male ------

Total 122 - 11 - 11

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The following tables provide basic information on injury on duty.

Table 3.14.1 Injury on duty for the period 1 April 2017 and 31 March 2018 Nature of injury on duty Number % of total Required basic medical attention only 2 100% Temporary Total Disablement 0 0 Permanent Disablement 0 0 Fatal 0 0 Total 2 100%

3.14 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.

Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2017 and 31 March 2018 Project title Total number of consultants that Duration Contract value in worked on project (work days) Rand Leave Management System 1 365 R36 790.00

Total number of projects Total individual consultants Total duration Total contract value in Rand Work days n/a

Table 3.15.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2017 and 31 March 2018 Project title Percentage ownership by HDI groups Percentage Number of consultants from management HDI groups that work on the by HDI groups project n/a

Table 3.15.3 Report on consultant appointments using Donor funds for the period 1 April 2017 and 31 March 2018 Project title Total Number of consultants Duration Donor and contract value in that worked on project (Work days) Rand ------

Total number of projects Total individual consultants Total duration Total contract value in Rand Work days ------

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Table 3.15.4 Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2017 and 31 March 2018 Project title Percentage ownership by HDI Percentage management by Number of consultants from groups HDI groups HDI groups that work on the project ------

3.16 Severance Packages

Table 3.16.1 Granting of employee initiated severance packages for the period 1 April 2017 and 31 March 2018 Salary band Number of Number of Number of Number of applications applications applications packages received referred to the supported by approved by MPSA MPSA department Lower skilled (Levels 1-2) - - - - Skilled Levels 3-5) - - - - Highly skilled production (Levels 6-8) - - - - Highly skilled supervision(Levels 9-12) - - - - Senior management (Levels 13-16) - - - - Total - - - -

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Report of the auditor-general to the Northern Cape Provincial Legislature on vote no. 2: Provincial Legislature

Report on the audit of the financial statements

Opinion

1. I have audited the financial statements of the Provincial Legislature set out on pages 101 to 146, which comprise the statement of financial position as at 31 March 2018, and the statement of financial performance, statement of changes in net assets, cash flow statement and the statement of comparison of budget information with actual information for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies.

2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Provincial Legislature as at 31 March 2018, and its financial performance and PART E cash flows for the year then ended in accordance with Standards of Generally Recognised Accounting Practice (Standards of GRAP) and the requirements of the Financial Management F I N A N C I A L of Parliament and Provincial Legislatures Act, 2009 (Act no. 10 of 2009) (FMPPLA). INFORMATION Basis for opinion I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of this auditor’s report.

3. I am independent of the department in accordance with the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants (IESBA code) and the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code.

4. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Emphasis of matter

5. I draw attention to the matter below. My opinion is not modified in respect of this matter.

Restatement of corresponding figures

6. As disclosed in note 2 to the financial statements, the corresponding figures for 31 March 2017 were restated due to the adjustment to the valuation of assets, as allowed by the transitional provisions of directive 8. The prior year figures for assets have been restated in the financial statements of the Provincial Legislature at, and for the year ended, 31 March 2018.

7. As disclosed in note 31 to the financial statements, the corresponding figures for 31 March 2017 were restated as a result of an error in the financial statements of the Provincial Legislature at, and for the year ended, 31 March 2018.

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Report of the auditor-general to the Northern Cape Provincial Legislature on vote no. 2: Provincial Legislature

Report on the audit of the financial statements

Opinion

Basis for opinion

I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of this auditor’s report.

4. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Emphasis of matter

5. I draw attention to the matter below. My opinion is not modified in respect of this matter.

Restatement of corresponding figures

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Responsibilities of the accounting officer for the financial statements

8. The accounting officer is responsible for the preparation and fair presentation of the financial statements in accordance with Standards of GRAP and the requirements of the FMPPLA, and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

9. In preparing the financial statements, the accounting officer is responsible for assessing the Provincial Legislature’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless there is an intention either to liquidate the Provincial Legislature or to cease operations, or there is no realistic alternative but to do so.

Auditor-general’s responsibilities for the audit of the financial statements

10. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

11. A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report.

Report on the audit of the annual performance report

Introduction and scope

12. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof, I have a responsibility to report material findings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.

13. My procedures address the reported performance information, which must be based on the approved performance planning documents of the Provincial Legislature. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents of the Provincial Legislature. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters.

14. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected programmes presented in the annual performance report of the Provincial Legislature for the year 31 March 2018:

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Programmes Pages in the annual performance report

Programme 2 – MPL and political party support 32 – 33

Programme 3 – Parliamentary business 34 – 41

15. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

16. I did not identify any material findings on the usefulness and reliability of the reported performance information for the following programmes:

• Programme 2 – MPL and political party support

• Programme 3 – Parliamentary business

Other matter

17. I draw attention to the matter below.

Achievement of planned targets

18. Refer to the annual performance report on pages 22 to 41 for information on the achievement of planned targets for the year and explanations provided for the under and over achievement of a number of targets.

Report on the audit of compliance with legislation

Introduction and scope

19. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material findings on the compliance of the department with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.

20. The material findings on compliance with specific matters in key legislations are as follows:

Annual financial statements, performance and annual report

21. The financial statements submitted for auditing were not prepared in accordance with generally recognised accounting practice, as required by sections 56(1) of the FMPPL Act. Material misstatements of current assets, expenditure and disclosure items identified by the auditors in the submitted financial statement were corrected, resulting in the financial statements receiving an unqualified audit opinion.

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Other information Other reports

22. The accounting officer is responsible for the other information. The other information 27. I draw attention to the following engagements conducted by various parties that had, or could comprises the information included in the annual report. The other information does not include have, an impact on the matters reported in the provincial Legislature’s financial statements, the financial statements, the auditor’s report and those selected programmes presented in the reported performance information, compliance with applicable legislation and other related annual performance report that have been specifically reported in this auditor’s report. matters. These reports did not form part of my opinion on the financial statements or my findings on the reported performance information or compliance with legislation. 23. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an 28. The Directorate of Priority Crime Investigation (Hawks) are investigating allegations of possible audit opinion or any form of assurance conclusion thereon. irregularities within the Provincial Legislature. These proceedings were in progress at the date of this auditor’s report. 24. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programmes presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

25. I did not receive the other information prior to the date of this auditor’s report. After I receive and read this information, and if I conclude that there is a material misstatement, I am required Kimberley to communicate the matter to those charged with governance and request that the other information be corrected. If the other information is not corrected, I may have to retract this 31 July 2018 auditor’s report and re-issue an amended report as appropriate. However, if it is corrected this will not be necessary.

Internal control deficiencies

26. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance on it. The matters reported below are limited to the significant internal control deficiencies that resulted in the basis for the unqualified opinion, the findings on the financial statements and the findings on compliance with legislation included in this report.

• The financial statements contained misstatements that were not corrected. This was mainly due to staff not fully understanding the requirements of the financial reporting framework. • Non-compliance with legislation could have been prevented had compliance been properly reviewed and monitored.

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Other information Other reports

Internal control deficiencies

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Annexure – Auditor-general’s responsibility for the audit 1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements, and the procedures performed on reported performance information for selected programmes and on the department’s compliance with respect to the selected subject matters.

Financial statements 2. In addition to my responsibility for the audit of the financial statements as described in this auditor’s report, I also: • identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Provincial Legislature’s internal control.

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the accounting officer.

• conclude on the appropriateness of the accounting officer ’s use of the going concerns basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Provincial Legislature ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of the auditor’s report. However, future events or conditions may cause a Provincial Legislature to cease to continue as a going concern.

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Communication with those charged with governance

3. I communicate with the accounting officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

4. I also confirm to the accounting officer that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and here applicable, related safeguards.

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Financial statements Annual Financial Statements for the year 2. In addition to my responsibility for the audit of the financial statements as described in this auditor’s report, I also: ended 31 March 2018 • identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the accounting officer.

• conclude on the appropriateness of the accounting officer ’s use of the going concerns basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or Northern Cape Provincial Treasury conditions that may cast significant doubt on the Provincial Legislature ability to continue Annual Financial Statements for the year as a going concern. If I conclude that a material uncertainty exists, I am required to draw ended 31 March 2018 attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of the auditor’s report. However, future events or conditions may cause a Provincial Legislature to cease to continue as a going concern.

Communication with those charged with governance

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 General Information

Country of incorporation and domicile South Africa

Legal form of entity Provincial Legislature

Nature of business and principal activities The Northern Cape Legislature is an activist legislature that champions democracy. The Legislature ensures that fundamental rights of the electorate and inhabitants of the Northern Cape are protected; their integrity respected and that meaningful processes are in place to entrench their freedoms. So, the role played by the Legislature in this regard is to ensure that the Executive Council addresses political, socio-economic challenging the inhabitants of the province.

Registered office Nobengula Extension Galeshewe Kimberley 8301

Bankers Absa Bank

Auditors Auditor-General of South Africa

Secretary Mr. PB Moopelwa

Attorneys State Attorney of South Africa

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Index

The reports and statements set out below comprise the annual financial statements presented to the parliament:

Index Page

Accounting Officer's Responsibilities and Approval 1043

Statement of Financial Position 1054

Statement of Financial Performance 1065

Statement of Changes in Net Assets 1076

Cash Flow Statement 1087

Statement of Comparison of Budget and Actual Amounts 8109 - 9

Accounting Policies 10111 - 25

Notes to the Annual Financial Statements 26127 - 45

Abbreviations

FMPPLA Financial Management of Parliament and Provincial Legislatures Act, 2009

GRAP Generally Recognised Accounting Practice

IPSAS International Public Sector Accounting Standards

LSS Legislative Sector Support

NCPL Northern Cape Provincial Legislature

UIF Unenployment Insurance Fund

SITA South African State Information Technology Agency

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018

Accounting Officer's Responsibilities and Approval

The Accounting Officer is required by the Finance Management of Parliment and Provincial Legislatures Act no. 10 of 2009, toNorthern maintain adequate Cape accounting Provincial records Legislature and is responsible for the content and integrity of the annual financial statements andAnnual related Financial financial Statements information for the included year ended in this 31 Marchreport. 2018 It is the responsibility of the Accounting Officer to ensure that the annual financial statements fairly present the state of affairs of the Legislature as at the end of the financial year and the results of its operations and cash flows for the period then ended. The external auditors are engaged to express an independentAccounting opinion Officer's on the annual Responsibilities financial statements and and was Approval given unrestricted access to all financial records and related data. The Accounting Officer is required by the Finance Management of Parliment and Provincial Legislatures Act no. 10 of 2009, The annual financial statements have been prepared in accordance with Standards of Generally Recognised Accounting to maintain adequate accounting records and is responsible for the content and integrity of the annual financial statements andPractice related (GRAP) financial including information any interpretations, included in this guidelines report. Itand is thedirectives responsibility issued byof the AccountingAccounting StandardsOfficer to ensureBoard. that the annual financial statements fairly present the state of affairs of the Legislature as at the end of the financial year and the Theresults annual of its financial operations statements and cash are flows based for uponthe period appropriate then ended.accounting The policiesexternal consistently auditors ar eapplied engaged and to supported express anby reasonable and prudent judgements and estimates. independent opinion on the annual financial statements and was given unrestricted access to all financial records and

related data. The Accounting Officer acknowledges that he is ultimately responsible for the system of internal financial control Theestablished annual byfinancial the Legislature statements and have place been considerable prepared importance in accordance on maintaining with Standards a strong of controlGenerally environment. Recognised To Accountingenable the PracticeAccounting (GRAP) Officer including to meet any these interpretations, responsibilities, guidelines the Accountingand directives Officer issued sets by thestandards Accounting for Standardsinternal control Board. aimed at reducing the risk of error or deficit in a cost effective manner. The standards include the proper delegation of responsibilities Thewithin annual a clearly financial defined statements framework, are effectivebased upon accounting appropriate procedures accounting and policiesadequate consistently segregation applied of duties and supportedto ensure anby reasoacceptablenable andlevel prudent of risk. judgements These controls and estimates. are monitored throughout the Legislature and all employees are required to maintain the highest ethical standards in ensuring the Legislature’s business is conducted in a manner that in all reasonableThe Accounting circumstances Officer acknowledgesis above reproach. that Thehe isfocus ultimately of risk management responsible forin the the Legislature system of is oninternal identifying, financial assessing, control managingestablished and by themonitoring Legislature all known and place forms considerable of risk across importance the Legislature. on maintaining While operating a strong controlrisk cannot environment. be fully eliminated, To enable the LegislatureAccounting endeavoursOfficer to meetto minimise these itresponsibilities, by ensuring that the appropriate Accounting infrastructure, Officer sets controls, standards systems for internal and ethical control behavio aimedur are at appliedreducing and the managed risk of error within or deficitpredetermined in a cost procedures effective manner. and constraints. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an Theacceptable Accounting level Officer of risk. is ofThese the opinion, controls based are onmonitored the information throughout and explanations the Legislature given and by management,all employees that are the required system toof maintaininternal control the highest provides ethical reasonable standards assurance in ensuring that thethe financialLegislature records’s business may beis reliedconducted on for in the a mannerpreparation that of in the all reasonableannual financial circumstances statements. is above However, reproach. any Thesystem focus of of internal risk management financial control in the Legislature can provide is ononly identifying, reasonable, assessing, and not managingabsolute, assurance and monitoring against all material known misstatementforms of risk acrossor deficit. the Legislature. While operating risk cannot be fully eliminated, the Legislature endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are appliedThe Accounting and managed Officer within has reviewed predetermined the Legislature procedures’s cash and flowconstraints. forecast for the year to 31 March 2019 and, in the light of this review and the current financial position, he is satisfied that the Legislature has or has access to adequate resources to Theconti Accountingnue in operational Officer existence is of the opinion, for the foreseeable based on the future. information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the The external auditors are responsible for auditing and reporting on the Legislature's annual financial statements. The annual financial statements. However, any system of internal financial control can provide only reasonable, and not absolute,annual financial assurance statements against material have been misstatement examined or by deficit. the Legislature's external auditors and their report is presented on page 4. T he Accounting Officer has reviewed the Legislature’s cash flow forecast for the year to 31 March 2019 and, in the light of this Thereview annual and financialthe current statements financial setposition, out on he pages is satisfied 101 to 146that , thewhich Legislature have been has prepared or has onaccess the goingto adequate concern resources basis, were to approvedcontinue in by operational the Accounting existence Officer for theon foreseeable31 May 2018 future. and were signed on:

The external auditors are responsible for auditing and reporting on the Legislature's annual financial statements. The annual financial statements have been examined by the Legislature's external auditors and their report is presented on page 4. Mr. PB Moopelwa Secretary to the Legislature The annual financial statements set out on pages 101 to 146, which have been prepared on the going concern basis, were approved by the Accounting Officer on 31 May 2018 and were signed on:

Kimberley

31 May 2018 Mr. PB Moopelwa Secretary to the Legislature

Kimberley 31 May 2018

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Statement of Financial Position as at 31 March 2018 Figures in Rand Note(s) 2018 2017 Restated*

Assets Current Assets Inventories 10 84 669 85 780 Receivables from exchange transactions 11 1 748 078 1 514 945 Prepayments and advances 9 3 137 452 1 724 823 Cash and cash equivalents 12 21 823 664 30 014 326 26 793 863 33 339 874

Non-Current Assets Property, plant and equipment 4 44 322 973 35 694 249 Intangible assets 5 617 435 276 328 Heritage assets 6 39 000 39 000 Investments 7 447 910 353 760 45 427 318 36 363 337 Total Assets 72 221 181 69 703 211

Liabilities Current Liabilities Finance lease obligation 13 1 147 682 1 004 603 Operating lease liability 8 68 068 2 242 Payables from exchange transactions 15 20 969 313 10 567 193 Aid assistance 14 653 759 770 229 22 838 822 12 344 267

Non-Current Liabilities Finance lease obligation 13 413 056 464 717 Total Liabilities 23 251 878 12 808 984 Net Assets 48 969 303 56 894 227 Reserves Funds unutilised 22 031 734 27 709 586 Accrued Revenue 11 322 737 9 912 063 Accumulated surplus 15 614 832 19 272 578 Total Net Assets 48 969 303 56 894 227

* See Note 2 & 31 4

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Statement of Financial Performance Figures in Rand Note(s) 2018 2017 Restated*

Revenue Revenue from exchange transactions Interest, dividends and rent of land 16 1 733 343 2 797 431 Sale of goods and services other than capital assets 55 625 64 019 Transactions in financial assets and liabilities 14 295 44 045 Total revenue from exchange transactions 1 803 263 2 905 495

Revenue from non-exchange transactions Transfer revenue Government grants and subsidies 17 216 470 000 197 538 000 Total revenue 218 273 263 200 443 495

Expenditure Depreciation and amortisation 4 (4 694 253) (3 832 099) Employee related costs 18 (117 204 274) (104 346 124) Goods and services 20 (41 001 697) (38 684 393) Payments for financial assets 19 (709 597) (764 012) Transfers and subsidies 21 (42 817 262) (31 088 550) Total expenditure (206 427 083) (178 715 178) Operating surplus 11 846 180 21 728 317 Loss on disposal of assets and liabilities (287 600) - Fair value adjustments 22 94 150 (5 881) Revenue transferred to net assets (13 899 803) (9 547 000) Departmental revenue transferred to net assets (1 410 674) (2 905 495) (15 503 927) (12 458 376) (Deficit) surplus for the year (3 657 747) 9 269 941

* See Note 2 & 31 5

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Statement of Changes in Net Assets Funds Accrued Total reserves Accumulated Total net unutilised revenue surplus assets Figures in Rand reserve

Opening balance as previously 45 637 586 7 006 568 52 644 154 5 233 832 57 877 986 reported Adjustments Change in accounting policy - - - 4 768 805 4 768 805 Balance at 01 April 2016 as 45 637 586 7 006 568 52 644 154 10 002 637 62 646 791 restated* Changes in net assets Surplus for the year - - - 9 269 941 9 269 941 Transfers from accumulated 9 547 000 2 905 495 12 452 495 - 12 452 495 surplus Amounts paid back (27 475 000) - (27 475 000) - (27 475 000) Total changes (17 928 000) 2 905 495 (15 022 505) 9 269 941 (5 752 564) Restated* Balance at 01 April 27 709 586 9 912 063 37 621 649 19 272 579 56 894 228 2017 Changes in net assets Surplus for the year - - - (3 657 747) (3 657 747) Transfers from accumulated 13 899 803 1 410 674 15 310 477 - 15 310 477 surplus Amounts paid back (19 577 655) - (19 577 655) - (19 577 655) Total changes (5 677 852) 1 410 674 (4 267 178) (3 657 747) (7 924 925) Balance at 31 March 2018 22 031 734 11 322 737 33 354 471 15 614 832 48 969 303

* See Note 2 & 31 6

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Cash Flow Statement Figures in Rand Note(s) 2018 2017 Restated*

Cash flows from operating activities

Receipts Appropriation 216 470 000 197 538 000 Interest income 1 733 343 2 797 431 Other receipts 287 451 (104 060) 218 490 794 200 231 371

Payments Employee costs (109 713 539) (103 815 970) Suppliers (40 596 270) (38 251 964) Grants and subsidies paid (42 817 256) (31 088 550) (193 127 065) (173 156 484) Net cash flows from operating activities 26 25 363 729 27 074 887

Cash flows from investing activities

Purchase of property, plant and equipment 4 (12 257 316) (13 935 538) Purchase of other intangible assets 5 (509 672) (160 704) Net cash flows from investing activities (12 766 988) (14 096 242)

Cash flows from financing activities

Movement in aid assistance (116 470) (7 353) Finance lease payments (1 093 278) (439 714) Repayment of unutilised revenue (19 577 655) (27 475 000) Net cash flows from financing activities (20 787 403) (27 922 067)

Net increase/(decrease) in cash and cash equivalents (8 190 662) (14 943 422) Cash and cash equivalents at the beginning of the year 30 014 326 44 957 748 Cash and cash equivalents at the end of the year 12 21 823 664 30 014 326

* See Note 2 & 31 7

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Statement of Comparison of Budget and Actual Amounts Budget on Accrual Basis Approved Adjustments Final Budget Actual amounts Difference Reference budget on comparable between final basis budget and Figures in Rand actual

Statement of Financial Performance Revenue Revenue from exchange transactions Sale of goods and services other 2 901 000 (2 696 000) 205 000 55 625 (149 375) 39 than capital assets Interest, dividends and rent on 216 000 2 526 000 2 742 000 1 733 343 (1 008 657) 39 land Total revenue from exchange 3 117 000 (170 000) 2 947 000 1 788 968 (1 158 032) transactions

Revenue from non-exchange transactions Transfer revenue Government grants & subsidies 194 971 000 21 500 000 216 471 000 216 470 000 (1 000) 39 Total revenue 198 088 000 21 330 000 219 418 000 218 258 968 (1 159 032)

Expenditure Personnel (111 935 000) (111 000) (112 046 000) (109 019 535) 3 026 465 39 Transfer payments (27 365 000) (14 226 000) (41 591 000) (43 716 913) (2 125 913) 39 General Expenses (39 265 000) (1 180 000) (40 445 000) (40 195 133) 249 867 39 Payments for capital assets (16 406 000) (5 983 000) (22 389 000) (11 643 776) 10 745 224 39 Total expenditure (194 971 000) (21 500 000) (216 471 000) (204 575 357) 11 895 643 Surplus before taxation 3 117 000 (170 000) 2 947 000 13 683 611 10 736 611 Actual Amount on Comparable 3 117 000 (170 000) 2 947 000 13 683 611 10 736 611 Basis as Presented in the Budget and Actual Comparative Statement

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Reconciliation Basis difference Accrued expenses 466 066 Fair value adjustments 94 150 Employee benefits (7 490 736)

Employee cost accrued 115 400 Receivables per employee costs 90 256 Lease accruals 1 009 597

Other debts written off (703 285) Purchase/derecognitions of 9 361 542 Property, plant and equipment and intangible assets Unutilised funds (15 310 477) Interest and pentalties (6 312)

Transactions in financial assets 14 294 Depreciation, amortisation and (4 981 853) loss on disposal Actual Amount in the (3 657 747) Statement of Financial Performance

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Accounting Policies

1. Presentation of Annual Financial Statements

The annual financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section 56(1) of the Finance Management of Parliment and Provincial Legislatures Act no. 10 of 2009.

These annual financial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention as the basis of measurement, unless specified otherwise. They are presented in South African Rand. All figures are rounded to the nearest rand.

Assets, liabilities, revenues and expenses were not offset, except where offsetting is either required or permitted by a Standard of GRAP.

A summary of the significant accounting policies, which have been consistently applied in the preperation of these annual financial statements, are disclosed below.

These accounting policies are consistent with the previous period.

Where Parliament and the legislature have taken advantage of the transitional provisions in the other Standards of GRAP, the following disclosures shall be made in the financial statements:

- the fact that the legislature has taken advantage of transitional provisions; - the classes of assets and/or liabilities that have not been measured in accordance with the Standards of GRAP at the previous reporting date, but which are now so measured; - the nature and amount of any measurement period adjustments recognised during the reporting period; and - information on the progress made towards measuring assets or liabilities in accorance with the requirements of Standards of GRAP.

1.1 Going concern assumption

These annual financial statements have been prepared based on the expectation that the entity will continue to operate as a going concern for at least the next 12 months.

1.2 Significant judgements and sources of estimation uncertainty

In preparing the annual financial statements, management is required to make estimates and assumptions that affect the amounts represented in the annual financial statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the annual financial statements. Significant judgements include:

Receivables

The Legislature assesses its receivables for impairment at the end of each reporting period. In determining whether an impairment loss should be recorded in surplus or deficit, the legislature makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash flows from a financial asset.

The impairment for receivables is calculated on a portfolio basis, based on historical loss ratios, adjusted for national and industry-specific economic conditions and other indicators present at the reporting date that correlate with defaults on the portfolio. These annual loss ratios are applied to loan balances in the portfolio and scaled to the estimated loss emergence period.

For receivables an impairment loss is recognised in surplus and deficit when there is objective evidence that it is impaired. The impairment is measured as the difference between the receivables carrying amount and the present value of estimated future cash flows discounted at the effective interest rate, computed at initial recognition.

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Accounting Policies

1.2 Significant judgements and sources of estimation uncertainty (continued)

Impairment testing

The recoverable (service) amounts of cash-generating units and individual assets have been determined based on the higher of value-in-use calculations and fair values less costs to sell. These calculations require the use of estimates and assumptions. It is reasonably possible that the assumptions may change which may then impact our estimations and may then require a material adjustment to the carrying value of tangible assets.

Value in use of cash generating assets

The legislature reviews and tests the carrying value of cash generating assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. If there are indications that impairment may have occurred, the remaining service potential of the asset is determined. The most appropriate approach selected to determine the remaining service potential is dependent on the availability of data and the nature of the impairment.

Value in use of non-cash generating assets

The legislature reviews and tests the carrying value of non-cash generating assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. If there are indications that impairment may have occured, the remaining service potential of the asset is determined. The most appropriate approach selected to determine the remaining service potential is dependent on the availability of data and the nature of the impairment.

Useful lives of property, plant and equipment and other assets

The Legislature's management determines the estimated useful lives and related depreciation or amortisation charges for all its Property, Plant and Equipment, and Intangible assets taking into account the residual values of the assets at the end of their useful lives.

The useful lives of assets are based on management's estimation. Management annually considered whether there are any indicators that the useful lives and residual values may need to be changed. Management has considered the impact of technology, availability of capital funding and the asset's service requirements in order to determine the optimum useful life expectation where appropriate.

Effective interest rate

The legislature uses the incremental borrowing interest rate to discount future cash flows.

1.3 Property, plant and equipment

Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one period.

The cost of an item of property, plant and equipment is recognised as an asset when:  it is probable that future economic benefits or service potential associated with the item will flow to the entity; and  the cost of the item can be measured reliably.

Property, plant and equipment are initially measured at cost.

The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted in arriving at the cost.

Where an asset is acquired through a non-exchange transaction, its cost is its fair value as at date of acquisition.

Where an item of property, plant and equipment is acquired in exchange for a non-monetary asset or monetary assets, or a combination of monetary and non-monetary assets, the asset acquired is initially measured at fair value (the cost). If the acquired item's fair value was not determinable, its deemed cost is the carrying amount of the asset(s) given up.

When significant components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Accounting Policies

1.3 Property, plant and equipment (continued)

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised.

Recognition of costs in the carrying amount of an item of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by management.

Items such as spare parts, standby equipment and servicing equipment are recognised when they meet the definition of property, plant and equipment.

Major inspection costs which are a condition of continuing use of an item of property, plant and equipment and which meet the recognition criteria above are included as a replacement in the cost of the item of property, plant and equipment. Any remaining inspection costs from the previous inspection are derecognised.

Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value.

The useful lives of items of property, plant and equipment have been assessed as follows:

Item Depreciation method Average useful life Computer Hardware and Systems Straight line 3 - 7 years Motor vehicle Straight line 5 years Domestic Equipment Straight line 5 - 10 years Building Air-conditioning Systems Straight line 5 - 10 years Books Straight line 20 years

The depreciable amount of an asset is allocated on a systematic basis over its useful life.

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

The Legislature assesses at each reporting date whether there is any indication that the Legislature's expectations about the residual value and the useful life of an asset have changed since the preceding reporting date. If any such indication exists, the Legislature revises the expected useful life and/or residual value accordingly. The change is accounted for as a change in an accounting estimate.

The depreciation charge for each period is recognised in surplus or deficit, unless it is included in the carrying amount of another asset.

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefits or service potential expected from the use of the asset.

The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

The Legislature separately discloses expenditure to repair and maintain property, plant and equipment in the notes to the financial statements.

Transitional provision

The legislature changed its accounting policy for property, plant and equipment in 2018. The change in accounting policy is made in accordance with its transitional provision as per Directive 8 of the GRAP Reporting Framework.

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Accounting Policies

1.4 Intangible assets

An asset is identifiable if it either:  is separable, i.e. is capable of being separated or divided from the legislature and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, identifiable assets or liability, regardless of whether the legislature intends to do so; or  arises from binding arrangements (including rights from contracts), regardless of whether those rights are transferable or separable from the legislature or from other rights and obligations.

A binding arrangement describes an arrangement that confers similar rights and obligations on the parties to it as if it were in the form of a contract.

An intangible asset is recognised when:  it is probable that the expected future economic benefits or service potential that are attributable to the asset will flow to the legislature; and  the cost or fair value of the asset can be measured reliably.

The Legislature assesses the probability of expected future economic benefits or service potential using reasonable and supportable assumptions that represent management’s best estimate of the set of economic conditions that will exist over the useful life of the asset.

Intangible assets are initially measured at cost.

Where an intangible asset is acquired through a non-exchange transaction, its initial cost at the date of acquisition is measured at its fair value as at that date.

Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred.

An intangible asset arising from development (or from the development phase of an internal project) is recognised when:  it is technically feasible to complete the asset so that it will be available for use or sale.  there is an intention to complete and use or sell it.  there is an ability to use or sell it.  it will generate probable future economic benefits or service potential.  there are available technical, financial and other resources to complete the development and to use or sell the asset.  the expenditure attributable to the asset during its development can be measured reliably.

An intangible asset is regarded as having an indefinite useful life when, based on all relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows or service potential. Amortisation is not provided for these intangible assets, but they are tested for impairment annually and whenever there is an indication that the asset may be impaired. For all other intangible assets amortisation is provided on a straight line basis over their useful live.

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date.

Internally generated brands, mastheads, publishing titles, customer lists and items similar in substance are not recognised as intangible assets.

Reassessing the useful life of an intangible asset with a finite useful life after it was classified as indefinite is an indicator that the asset may be impaired. As a result the asset is tested for impairment and the remaining carrying amount is amortised over its useful life.

Item Depreciation method Average useful life Computer software Straight line 2 years

Intangible assets are derecognised:  on disposal; or  when no future economic benefits or service potential are expected from its use or disposal.

The gain or loss arising from the derecognition of intangible assets is included in surplus or deficit when the asset is derecognised. The gain or loss is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the asset.

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Accounting Policies

1.4 Intangible assets (continued)

Transitional provision

The Legislature changed its accounting policy for intangible assets in 2018. The change in accounting policy was made in accordance with its transitional provision as per Directive 8 of the GRAP Reporting Framework.

1.5 Heritage assets

Heritage assets are assets that have a cultural, environmental, historical, natural, scientific, technological or artistic significance and are held indefinitely for the benefit of present and future generations.

The Legislature separately discloses expenditure to repair and maintain heritage assets in the notes to the financial statements.

The Legislature recognises a heritage asset as an asset if it is probable that future economic benefits or service potential associated with the asset will flow to the Legislature, and the cost or fair value of the asset can be measured reliably.

Where the Legislature holds a heritage asset, but on initial recognition it does not meet the recognition criteria because it cannot be reliable measured, information on such heritage asset will be disclosed in the note for heritage assets.

Heritage assets are initially measured at cost.

When a heritage asset is acquired through a non-exchange transaction, its cost is measured at its fair value as at the date of acquisition.

Subsequent to initial measurement classes of heritage assets are carried at cost less any accumulated impairment losses.

The Legislature assesses at each reporting date whether there is an indication that it may be impaired. If any such indication exists, the Legislature estimates the recoverable amount or the recoverable service amount of the heritage asset.

The Legislature derecognises heritage asset on disposal, or when no future economic benefits or service potential are expected from its use or disposal.

The gain or loss arising from the derecognition of a heritage asset is included in surplus or deficit when the item is derecognised, The gain or loss arising from derecognition is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the asset.

Transitional provision

The Legislature changed its accounting policy for heritage assets in 2018. The change in accounting policy is made in accordance with its transitional provision as per Directive 8 of the GRAP Reporting Framework.

1.6 Impairment of non-cash-generating assets

Non-cash-generating assets are assets other than cash-generating assets.

Identification

When the carrying amount of a non-cash-generating asset exceeds its recoverable service amount, it is impaired.

The legislature assesses at each reporting date whether there is any indication that a non-cash-generating asset may be impaired. If any such indication exists, the legislature estimates the recoverable service amount of the asset.

Irrespective of whether there is any indication of impairment, the legislature also tests a non-cash-generating intangible asset with an indefinite useful life or a non-cash-generating intangible asset not yet available for use for impairment annually by comparing its carrying amount with its recoverable service amount. This impairment test is performed at the same time every year. If an intangible asset is initially recognised during the current reporting period, that intangible asset is tested for impairment before the end of the current reporting period.

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NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Accounting Policies

1.6 Impairment of non-cash-generating assets (continued)

Value in use

Value in use of non-cash-generating assets is the present value of the non-cash-generating assets remaining service potential.

The present value of the remaining service potential of a non-cash-generating assets is determined using the following approach:

Depreciated replacement cost approach

The present value of the remaining service potential of a non-cash-generating asset is determined as the depreciated replacement cost of the asset. The replacement cost of an asset is the cost to replace the asset’s gross service potential. This cost is depreciated to reflect the asset in its used condition. An asset may be replaced either through reproduction (replication) of the existing asset or through replacement of its gross service potential. The depreciated replacement cost is measured as the reproduction or replacement cost of the asset, whichever is lower, less accumulated depreciation calculated on the basis of such cost, to reflect the already consumed or expired service potential of the asset.

The replacement cost and reproduction cost of an asset are determined on an “optimised” basis. The rationale is that the entity will not replace or reproduce the asset with a like asset if the asset to be replaced or reproduced is an overdesigned or overcapacity asset. Overdesigned assets contain features which are unnecessary for the goods or services the asset provides. Overcapacity assets are assets that have a greater capacity than is necessary to meet the demand for goods or services the asset provides. The determination of the replacement cost or reproduction cost of an asset on an optimised basis thus reflects the service potential required of the asset.

Recognition and measurement

If the recoverable service amount of a non-cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable service amount. This reduction is an impairment loss.

An impairment loss is recognised immediately in surplus or deficit.

After the recognition of an impairment loss, the depreciation (amortisation) charge for the non-cash-generating asset is adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

Reversal of an impairment loss

The legislature assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a non-cash-generating asset may no longer exist or may have decreased. If any such indication exists, the legislature estimates the recoverable service amount of that asset.

An impairment loss recognised in prior periods for a non-cash-generating asset is reversed if there has been a change in the estimates used to determine the asset’s recoverable service amount since the last impairment loss was recognised. The carrying amount of the asset is increased to its recoverable service amount. The increase is a reversal of an impairment loss. The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in prior periods.

A reversal of an impairment loss for a non-cash-generating asset is recognised immediately in surplus or deficit.

After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the non-cash-generating asset is adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

1.7 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or a residual interest of another entity.

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NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Accounting Policies

1.7 Financial instruments (continued)

Classification

The legislature has the following types of financial assets (classes and category) as reflected on the face of the statement of financial position or in the notes thereto:

Class Category Investments Financial asset measured fair value Receivables from exchange transactions Financial asset measured at amortised cost Cash and cash equivalents Financial asset measured at amortised cost

The legislature has the following types of financial liabilities (classes and category) as reflected on the face of the statement of financial position or in the notes thereto:

Class Category Aid assitance utilised Financial liability measured at amortised cost Finance lease obligation Financial liability measured at amortised cost Payables from exchange transactions Financial liability measured at amortised cost Employee benefits Financial liability measured at amortised cost

Initial recognition

The legislature recognises a financial asset or a financial liability in its statement of financial position when the legislature becomes a party to the contractual provisions of the instrument.

The legislature recognises financial assets using trade date accounting.

Initial measurement of financial assets and financial liabilities

The legislature measures a financial asset and financial liability initially at its amortised cost plus transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.

The legislature first assesses whether the substance of a concessionary loan is in fact a loan. On initial recognition, the legislature analyses a concessionary loan into its component parts and accounts for each component separately. The legislature accounts for that part of a concessionary loan that is:  a social benefit in accordance with the Framework for the Preparation and Presentation of Financial Statements, where it is the issuer of the loan; or  non-exchange revenue, in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions (Taxes and Transfers), where it is the recipient of the loan.

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Accounting Policies

1.7 Financial instruments (continued)

Subsequent measurement of financial assets and financial liabilities

The legislature measures all financial assets and financial liabilities after initial recognition using the following categories:  Financial instruments at fair value.  Financial instruments at amortised cost.  Financial instruments at cost.

All financial assets measured at amortised cost, or cost, are subject to an impairment review.

Fair value measurement considerations

The best evidence of fair value is quoted prices in an active market. If the market for a financial instrument is not active, the legislature establishes fair value by using a valuation technique. The objective of using a valuation technique is to establish what the transaction price would have been on the measurement date in an arm’s length exchange motivated by normal operating considerations. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, if available, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. If there is a valuation technique commonly used by market participants to price the instrument and that technique has been demonstrated to provide reliable estimates of prices obtained in actual market transactions, the legislature uses that technique. The chosen valuation technique makes maximum use of market inputs and relies as little as possible on entity-specific inputs. It incorporates all factors that market participants will consider in setting a price and is consistent with accepted economic methodologies for pricing financial instruments. Periodically, the entity calibrates the valuation technique and tests it for validity using prices from any observable current market transactions in the same instrument (i.e. without modification or repackaging) or based on any available observable market data.

The fair value of financial liability with a demand feature (e.g a demand deposit) is not less than the amount payable on demand, discounted from the first date that the amount could be required to be paid.

Gains and losses

A gain or loss arising from a change in the fair value of a financial asset or financial liability measured at fair value is recognised in surplus or deficit.

For financial assets and financial liabilities measured at amortised cost or cost, a gain or loss is recognised in surplus or deficit when the financial asset or financial liability is derecognised or impaired, or through the amortisation process.

Impairment and uncollectibility of financial assets

The legislature assesses at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired.

For amounts due to the legislature, significant financial difficulties of the receivable, probability that the receivable will enter bankruptcy and default on payments are all considered indicators of impairment.

Financial assets measured at amortised cost:

If there is objective evidence that an impairment loss on financial assets measured at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account. The amount of the loss is recognised in surplus or deficit.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed by adjusting an allowance account. The reversal does not result in the carrying amount of the financial asset that exceeds what the amortised cost would have been had the impairment not been recognised at the date the impairment is reversed. The amount of the reversal is recognised in surplus or deficit.

Financial assets measured at cost:

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Accounting Policies

1.7 Financial instruments (continued)

If there is objective evidence that an impairment loss has been incurred on an investment in a residual interest that is not measured at fair value because its fair value cannot be measured reliably, the amount of the impairment loss is measured as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses are not reversed.

Derecognition

Financial assets

The legislature derecognises financial assets using trade date accounting.

The legislature derecognises a financial asset only when:  the contractual rights to the cash flows from the financial asset expire, are settled or waived;  the legislature transfers to another party substantially all of the risks and rewards of ownership of the financial asset; or  the legislature, despite having retained some significant risks and rewards of ownership of the financial asset, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer. In this case, the legislature : - derecognises the asset; and - recognises separately any rights and obligations created or retained in the transfer.

The carrying amounts of the transferred asset are allocated between the rights or obligations retained and those transferred on the basis of their relative fair values at the transfer date. Newly created rights and obligations are measured at their fair values at that date. Any difference between the consideration received and the amounts recognised and derecognised is recognised in surplus or deficit in the period of the transfer.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received is recognised in surplus or deficit.

Financial liabilities

The legislature removes a financial liability (or a part of a financial liability) from its statement of financial position when it is extinguished — i.e. when the obligation specified in the contract is discharged, cancelled, expires or waived.

An exchange between an existing borrower and lender of debt instruments with substantially different terms is accounted for as having extinguished the original financial liability and a new financial liability is recognised. Similarly, a substantial modification of the terms of an existing financial liability or a part of it is accounted for as having extinguished the original financial liability and having recognised a new financial liability.

The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in surplus or deficit. Any liabilities that are waived, forgiven or assumed by another entity by way of a non-exchange transaction are accounted for in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions (Taxes and Transfers).

1.8 Inventories

Inventories are initially measured at cost except where inventories are acquired through a non-exchange transaction, then their costs are their fair value as at the date of acquisition.

Inventories are measured at the lower of cost and current replacement cost where they are held for;  distribution at no charge or for a nominal charge; or  consumption in the production process of goods to be distributed at no charge or for a nominal charge.

Current replacement cost is the cost the legislature incurs to acquire the asset on the reporting date.

The cost of inventories comprises of all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Accounting Policies

1.8 Inventories (continued)

The cost of inventories of items that are not ordinarily interchangeable and goods or services produced and segregated for specific projects is assigned using specific identification of the individual costs.

The cost of inventories is assigned using the first-in, first-out (FIFO) formula. The same cost formula is used for all inventories having a similar nature and use to the legislature.

When inventories are sold, the carrying amounts of those inventories are recognised as an expense in the period in which the related revenue is recognised. If there is no related revenue, the expenses are recognised when the goods are distributed, or related services are rendered.

The amount of any write-down of inventories to net realisable value or current replacement cost and all losses of inventories are recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realisable value or current replacement cost, are recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

Transitional provision

The legislature changed its accounting policy for inventories in 2018. The change in accounting policy is made in accordance with its transitional provision as per Directive 8 of the GRAP Reporting Framework.

1.9 Employee benefits

Short-term employee benefits

Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled within twelve months after the end of the period in which the employees render the related service.

Short-term employee benefits include:  wages, salaries and social security contributions;  short-term compensated absences (such as paid annual leave and paid sick leave) where the compensation for the absences is due to be settled within twelve months after the end of the reporting period in which the employees render the related employee service;  bonus, incentive and performance related payments payable within twelve months after the end of the reporting period in which the employees render the related service; and  non-monetary benefits (for example, medical care, and free or subsidised goods or services such as housing, cars and cellphones) for current employees.

When an employee has rendered service to the legislature during a reporting period, the legislature recognise the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service:  as a liability (accrued expense), after deducting any amount already paid. If the amount already paid exceeds the undiscounted amount of the benefits, the legislature recognises that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund; and  as an expense, unless another Standard requires or permits the inclusion of the benefits in the cost of an asset.

The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs. The legislature measures the expected cost of accumulating compensated absences as the additional amount that the legislature expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

The legislature recognises the expected cost of bonus, incentive and performance related payments when the legislature has a present legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligation can be made. A present obligation exists when the legislature has no realistic alternative but to make the payments.

1.10 Provisions and contingencies

Provisions are recognised when:  the legislature has a present obligation as a result of a past event;  it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation; and  a reliable estimate can be made of the obligation.

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Accounting Policies

1.10 Provisions and contingencies (continued)

The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date.

Where the effect of time value of money is material, the amount of a provision is the present value of the expenditures expected to be required to settle the obligation.

The discount rate is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement is recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement is treated as a separate asset. The amount recognised for the reimbursement does not exceed the amount of the provision.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Provisions are reversed if it is no longer probable that an outflow of resources embodying economic benefits or service potential will be required, to settle the obligation.

Where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognised as an interest expense.

A provision is used only for expenditures for which the provision was originally recognised.

Provisions are not recognised for future operating deficits.

If the legislature has a contract that is onerous, the present obligation (net of recoveries) under the contract is recognised and measured as a provision.

A constructive obligation to restructure arises only when the legislature:  has a detailed formal plan for the restructuring, identifying at least: - the activity/operating unit or part of a activity/operating unit concerned; - the principal locations affected; - the location, function, and approximate number of employees who will be compensated for services being terminated; - the expenditures that will be undertaken; and - when the plan will be implemented; and  has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement that plan or announcing its main features to those affected by it.

A restructuring provision includes only the direct expenditures arising from the restructuring, which are those that are both:  necessarily entailed by the restructuring; and  not associated with the ongoing activities of the legislature

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurance of one of more uncertain future events not wholly within the control of the legislature.

A contingent liability is:  a possible obligation that arises from past events and whose existence will be confirmed only by the occurance of non-occurance of one or more uncertain future events non wholly within the control of the legislature; or  a present obligation that arises from past events but is not recognised because: - it is not probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation; - the amount of the obligation cannot be measured with sufficient reliability.

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 29.

1.11 Reserves

Reserves consist of the unspent portion of annual appropriation and accrued revenue. These reserves can be surrendered funds which can be appropriated again in future periods. This accounting treatment is done in compliance with section 28(2)(b) and 23(1) of the FMPPLA.

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Accounting Policies

1.12 Revenue from exchange transactions

Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets, other than increases relating to contributions from owners.

An exchange transaction is one in which the legislature receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.

Measurement

Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates.

Sale of goods

Revenue from the sale of goods is recognised when all the following conditions have been satisfied:  the legislature has transferred to the purchaser the significant risks and rewards of ownership of the goods;  the legislature retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;  the amount of revenue can be measured reliably;  it is probable that the economic benefits or service potential associated with the transaction will flow to the entity; and  the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the reporting date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:  the amount of revenue can be measured reliably;  it is probable that the economic benefits or service potential associated with the transaction will flow to the legislature;  the stage of completion of the transaction at the reporting date can be measured reliably; and  the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Service revenue is recognised by reference to the stage of completion of the transaction at the reporting date. Stage of completion is determined by surveys of work performed.

Interest and dividends

Revenue arising from the use by others of legislature assets yielding interest and dividends or similar distributions is recognised when:  it is probable that the economic benefits or service potential associated with the transaction will flow to the legislature, and  the amount of the revenue can be measured reliably.

Interest is recognised, in surplus or deficit, using the effective interest rate method.

1.13 Revenue from non-exchange transactions

Revenue comprises gross inflows of economic benefits or service potential received and receivable by an entity, which represents an increase in net assets, other than increases relating to contributions from owners.

Conditions on transferred assets are stipulations that specify that the future economic benefits or service potential embodied in the asset is required to be consumed by the recipient as specified or future economic benefits or service potential must be returned to the transferor.

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Accounting Policies

1.13 Revenue from non-exchange transactions (continued)

Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, the legislature either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange.

Restrictions on transferred assets are stipulations that limit or direct the purposes for which a transferred asset may be used, but do not specify that future economic benefits or service potential is required to be returned to the transferor if not deployed as specified.

Stipulations on transferred assets are terms in laws or regulation, or a binding arrangement, imposed upon the use of a transferred asset by entities external to the reporting entity.

The taxable event is the event that the government, legislature or other authority has determined will be subject to taxation.

Taxes are economic benefits or service potential compulsorily paid or payable to entities, in accordance with laws and or regulations, established to provide revenue to government. Taxes do not include fines or other penalties imposed for breaches of the law.

Transfers are inflows of future economic benefits or service potential from non-exchange transactions, other than taxes.

Recognition

An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue, except to the extent that a liability is also recognised in respect of the same inflow.

As the legislature satisfies a present obligation recognised as a liability in respect of an inflow of resources from a nonexchange transaction recognised as an asset, it reduces the carrying amount of the liability recognised and recognises an amount of revenue equal to that reduction.

Revenue received from conditional grants, donations and funding are recognised as revenue to the extent that the legislature has complied with the criteria, conditions or obligations embodied in the agreement. To the extent that the criteria, conditions or obligations have not been met, a liability is recognised.

Measurement

Revenue from a non-exchange transaction is measured at the amount of the increase in net assets recognised by the legislature.

When, as a result of a non-exchange transaction, the legislature recognises an asset, it also recognises revenue equivalent to the amount of the asset measured at its fair value as at the date of acquisition, unless it is also required to recognise a liability. Where a liability is required to be recognised it will be measured as the best estimate of the amount required to settle the obligation at the reporting date, and the amount of the increase in net assets, if any, recognised as revenue. When a liability is subsequently reduced, because the taxable event occurs or a condition is satisfied, the amount of the reduction in the liability is recognised as revenue.

Transfers

The legislature recognises an asset in respect of transfers when the transferred resources meet the definition of an asset and satisfy the criteria for recognition as an asset.

Transferred assets are measured at their fair value as at the date of acquisition.

Gifts and donations, including goods in-kind

Gifts and donations, including goods in kind, are recognised as assets and revenue when it is probable that the future economic benefits or service potential will flow to the legislature and the fair value of the assets can be measured reliably.

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Accounting Policies

1.13 Revenue from non-exchange transactions (continued)

Services in-kind

Except for financial guarantee contracts, the legislature recognises services in-kind that are significant to its operations and/or service delivery objectives as assets and recognise the related revenue when it is probable that the future economic benefits or service potential will flow to the legislature and the fair value of the assets can be measured reliably.

Where services in-kind are not significant to the legislature’s operations and/or service delivery objectives and/or do not satisfy the criteria for recognition, the legislature discloses the nature and type of services in-kind received during the reporting period.

1.14 Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

When a lease includes both land and buildings elements, the legislature assesses the classification of each element separately.

Finance leases - lessee

Finance leases are recognised as assets and liabilities in the statement of financial position at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

The discount rate used in calculating the present value of the minimum lease payments is the entity's incremental borrowing rate.

Minimum lease payments are apportioned between the finance charge and reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of on the remaining balance of the liability.

Any contingent rents are expensed in the period in which they are incurred.

Operating leases - lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset or liability.

The aggregate benefit of incentives is recognised as a reduction of rental expense over the lease term on a straight-line basis.

Any contingent rents are expensed in the period in which they are incurred.

1.15 Grant in aid

The legislature transfers money to individuals, organisations and other sectors of government from time to time. When making these transfers, the legislature does not:  receive any goods or services directly in return, as would be expected in a purchase of sale transaction;  expect to be repaid in future; or  expect a financial return, as would be expected from an investment.

These transfers are recognised in the statement of financial performance as expenses in the period that the events given raise to the transfer occurred.

1.16 Comparative figures

Where necessary, comparative figures have been reclassified to conform to changes in presentation in the current year. Refer to note .

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Accounting Policies

1.17 Commitments

Items are classified as commitments when the legislature has committed itself to future transactions that will normally result in the outflow of cash.

Disclosures are required in respect of unrecognised contractual commitments.

Commitments for which disclosure is necessary to achieve a fair presentation should be disclosed in a note to the financial statements, if both the following criteria are met:  Contracts should be non-cancellable or only cancellable at significant cost (for example, contracts for computer or building maintenance services); and  Contracts should relate to something other than the routine, steady, state business of the legislature - therefore salary commitments relating to employment contracts or social security benefit commitments are excluded.

1.18 Unauthorised expenditure

Unauthorised expenditure means:  overspending of a vote or a main division within a vote; and  expenditure not in accordance with the purpose of a vote or, in the case of a main division, not in accordance with the purpose of the main division.

All expenditure relating to unauthorised expenditure is recognised as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

1.19 Fruitless and wasteful expenditure

Fruitless expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised.

All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

1.20 Irregular expenditure

Irregular expenditure as defined in section 1 of the Financial Management of Parliament and Provincial Legislatures Act, 2009 is expenditure other than unauthorised expnditure, incurred in contravention of or that is not in accordance with the requirement of this Act and any other applicable legislation.

1.21 Budget information

The approved budget is prepared on a cash basis and presented by economic classification linked to performance outcome objectives.

The approved budget covers the fiscal period from 2017/04/01 to 2018/03/31.

The annual financial statements and the budget are not on the same basis of accounting therefore a reconciliation between the statement of financial performance and the budget have been included in the annual financial statements. Refer to note 39.

1.22 Related parties

A related party is a person or an entity with the ability to control or jointly control the legislature, or exercise significant influence over the legislature, or vice versa, or an entity that is subject to common control.

Management are those persons responsible for planning, directing and controlling the activities of the legislature, including those charged with the governance of the legislature in accordance with legislation, in instances where they are required to perform such functions.

Close members of the family of a person are considered to be those family members who may be expected to influence, or be influenced by, management in their dealings with the entity.

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Accounting Policies

1.22 Related parties (continued)

Only transactions with related parties not at arm’s length or not in the ordinary course of business are disclosed.

1.23 Events after reporting date

Events after reporting date are those events, both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue. Two types of events can be identified:  those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); and  those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date).

The legislature adjusts the amount recognised in the financial statements to reflect adjusting events after the reporting date once the event occurred.

The legislature discloses the nature of the event and an estimate of its financial effect or a statement that such estimate cannot be made in respect of all material non-adjusting events, where non-disclosure could influence the economic decisions of users taken on the basis of the financial statements.

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NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Notes to the Annual Financial Statements Figures in Rand 2018 2017

2. Changes in accounting policy

The annual financial statements have been prepared in accordance with Standards of Generally Recognised Accounting Practice on a basis consistent with the prior year except for the adoption of the following new or revised standards. Directive 8 was issued by the Accounting Standards Board to assist Legislatures to adopt GRAP for the first time. In terms of the directive, transitional provisions were allowed with regards to asset measurement. The Legislature had previously utilised these transitional provisions. In the current year, the asset valuation has been complied with in terms of the respective GRAP standards. Due to the adjustment to the valuation, as allowed by the transitional provisions of Directive 8, the prior year figures for the assets have been restated.

The following adjustments were required: a) Depreciation was calculated and processed for the first time since GRAP implementation date. This also resulted in a reduction on the loss on asset disposals compared to the prior year stated amount. b) Inventory is measured at the lower of cost or current replacement cost subsequent to initial recognition.

The aggregate effect of the changes in accounting policy on the annual financial statements for the year ended 31 March 2017 is as follows:

Statement of financial position

Property, plant and equipment Previously stated - 42 708 800 Adjustment - (7 014 523) - 35 694 277

Heritage assets Previously stated - 39 000

Inventories Previously stated - 85 780

Accumulated surplus - opening balance Adjustment - 7 136 580

Statement of Financial Performance

Depreciation and amortisation Adjustment - Depreciation - (3 760 044) Adjustment - Amortisation - (72 055) - (3 832 099)

Change in Profit and Loss Adjustment - (3 832 099)

3. New standards and interpretations

3.1 Standards and interpretations issued, but not yet effective

The legislature has not applied the following standards and interpretations, which have been published and are mandatory for the legislature’s accounting periods beginning on or after 01 April 2018 or later periods:

GRAP 18 (as amended 2016): Segment Reporting

Amendments to the Standard of GRAP on Segment Reporting resulted from editorial and other changes to the original text have been made to ensure consistency with other Standards of GRAP.

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018

Notes to the Annual Financial Statements

3. New standards and interpretations (continued)

The most significant changes to the Standard are:  General improvements: An appendix with illustrative segment disclosures has been deleted from the Standard as the National Treasury has issued complete examples as part of its implementation guidance.

The effective date of the amendment is for years beginning on or after 01 April 2019.

The legislature expects to adopt the amendment for the first time in the 2020 annual financial statements.

It is unlikely that the amendment will have a material impact on the legislature's annual financial statements.

GRAP 106 (as amended 2016): Transfers of functions between entities not under common control

Amendments to the Standard of GRAP on Transfer of Functions Between Entities Not Under Common Control resulted from changes made to IFRS 3 on Business Combinations (IFRS 3) as a result of the IASB’s amendments on Annual Improvements to IFRSs 2010 - 2012 Cycle issued in December 2013.

The most significant changes to the Standard are:  IASB amendments: to require contingent consideration that is classified as an asset or a liability to be measured at fair value at each reporting period.

The effective date of the amendment is for years beginning on or after 01 April 2019.

The legislature expects to adopt the amendment for the first time in the 2020 annual financial statements.

It is unlikely that the amendment will have a material impact on the legislature's annual financial statements.

GRAP 110 (as amended 2016): Living and Non-living Resources

Amendments to the Standard of GRAP on Living and Non-living Resources resulted from editorial changes to the original text and inconsistencies in measurement requirements in GRAP 23 and other asset-related Standards of GRAP in relation to the treatment of transaction costs. Other changes resulted from changes made to IPSAS 17 on Property, Plant and Equipment (IPSAS 17) as a result of the IPSASB’s Improvements to IPSASs 2014 issued in January 2015 and Improvements to IPSASs 2015 issued in March 2016.

The most significant changes to the Standard are:  General improvements: To clarify the treatment of transaction costs and other costs incurred on assets acquired in non-exchange transactions to be in line with the principle in GRAP 23; and To clarify the measurement principle when assets may be acquired in exchange for a non-monetary asset or assets, or a combination of monetary and non-monetary assets  IPSASB amendments: To clarify the revaluation methodology of the carrying amount and accumulated depreciation when a living resource is revalued; To clarify acceptable methods of depreciating assets; and To define a bearer plant and include bearer plants within the scope of GRAP 17 or GRAP 110, while the produce growing on bearer plants will remain within the scope of GRAP 27

The effective date of the amendment is for years beginning on or after 01 April 2020.

The legislature expects to adopt the amendment for the first time in the 2021 annual financial statements.

It is unlikely that the amendment will have a material impact on the legislature's annual financial statements.

GRAP 20: Related parties

The objective of this standard is to ensure that a reporting entity’s annual financial statements contain the disclosures necessary to draw attention to the possibility that its financial position and surplus or deficit may have been affected by the existence of related parties and by transactions and outstanding balances with such parties.

An entity that prepares and presents financial statements under the accrual basis of accounting (in this standard referred to as the reporting entity) shall apply this standard in:  identifying related party relationships and transactions;  identifying outstanding balances, including commitments, between an entity and its related parties;

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018

Notes to the Annual Financial Statements

3. New standards and interpretations (continued)  identifying the circumstances in which disclosure of the items in (a) and (b) is required; and  determining the disclosures to be made about those items.

This standard requires disclosure of related party relationships, transactions and outstanding balances, including commitments, in the consolidated and separate financial statements of the reporting entity in accordance with the Standard of GRAP on Consolidated and Separate Financial Statements. This standard also applies to individual annual financial statements.

Disclosure of related party transactions, outstanding balances, including commitments, and relationships with related parties may affect users’ assessments of the financial position and performance of the reporting entity and its ability to deliver agreed services, including assessments of the risks and opportunities facing the entity. This disclosure also ensures that the reporting entity is transparent about its dealings with related parties.

The standard states that a related party is a person or an entity with the ability to control or jointly control the other party, or exercise significant influence over the other party, or vice versa, or an entity that is subject to common control, or joint control. As a minimum, the following are regarded as related parties of the reporting entity:  A person or a close member of that person’s family is related to the reporting entity if that person: - has control or joint control over the reporting entity; - has significant influence over the reporting entity; - is a member of the management of the entity or its controlling entity.  An entity is related to the reporting entity if any of the following conditions apply: - the entity is a member of the same economic entity (which means that each controlling entity, controlled entity and fellow controlled entity is related to the others); - one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of an economic entity of which the other entity is a member); - both entities are joint ventures of the same third party; - one entity is a joint venture of a third entity and the other entity is an associate of the third entity; - the entity is a post-employment benefit plan for the benefit of employees of either the entity or an entity related to the entity. If the reporting entity is itself such a plan, the sponsoring employers are related to the entity; - the entity is controlled or jointly controlled by a person identified in (a); and - a person identified in (a)(i) has significant influence over that entity or is a member of the management of that entity (or its controlling entity).

The standard furthermore states that related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party, regardless of whether a price is charged.

The standard elaborates on the definitions and identification of:  close member of the family of a person;  management;  related parties;  remuneration; and  significant influence

The standard sets out the requirements, inter alia, for the disclosure of:  control;  related party transactions; and  remuneration of management

The effective date of the amendment is for years beginning on or after 01 April 2019.

The legislature expects to adopt the amendment for the first time in the 2020 annual financial statements.

The adoption of this standard is not expected to impact on the results of the legislature, but may result in more disclosure than is currently provided in the annual financial statements.

GRAP 109: Accounting by Principals and Agents

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NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018

Notes to the Annual Financial Statements

3. New standards and interpretations (continued)

The objective of this Standard is to outline principles to be used by an entity to assess whether it is party to a principalagent arrangement, and whether it is a principal or an agent in undertaking transactions in terms of such an arrangement. The Standard does not introduce new recognition or measurement requirements for revenue, expenses, assets and/or liabilities that result from principal-agent arrangements. The Standard does however provide guidance on whether revenue, expenses, assets and/or liabilities should be recognised by an agent or a principal, as well as prescribe what information should be disclosed when an entity is a principal or an agent.

It furthermore covers: definitions, identifying whether an entity is a principal or agent, accounting by a principal or agent, presentation, disclosure, transitional provisions and effective date.

The effective date of the amendment is for years beginning on or after 01 April 2019.

The legislature expects to adopt the amendment for the first time in the 2020 annual financial statements.

It is unlikely that the standard will have a material impact on the legislature's annual financial statements.

GRAP 32: Service Concession Arrangements: Grantor

The objective of this Standard is: to prescribe the accounting for service concession arrangements by the grantor, a public sector entity.

It furthermore covers: definitions, recognition and measurement of a service concession asset, recognition and measurement of liabilities, other liabilities, contingent liabilities, and contingent assets, other revenues, presentation and disclosure, transitional provisions, as well as the effective date.

The effective date of the amendment is for years beginning on or after 01 April 2019.The legislature expects to adopt the amendment for the first time in the 2020 annual financial statements.

It is unlikely that the standard will have a material impact on the entity's annual financial statements.

GRAP 108: Statutory Receivables

The objective of this Standard is: to prescribe accounting requirements for the recognition, measurement, presentation and disclosure of statutory receivables.

It furthermore covers: definitions, recognition, derecognition, measurement, presentation and disclosure, transitional provisions, as well as the effective date.

The effective date of the standard is not yet set by the Minister of Finance.

The entity expects to adopt the standard for the first time when the Minister sets the effective date for the standard. It

is unlikely that the standard will have a material impact on the legislature's annual financial statements.

GRAP 105: Transfers of functions between entities under common control

The objective of this Standard is to establish accounting principles for the acquirer and transferor in a transfer of functions between entities under common control. It requires an acquirer and a transferor that prepares and presents financial statements under the accrual basis of accounting to apply this Standard to a transaction or event that meets the definition of a transfer of functions. It includes a diagram and requires that entities consider the diagram in determining whether this Standard should be applied in accounting for a transaction or event that involves a transfer of functions or merger.

It furthermore covers Definitions, Identifying the acquirer and transferor, Determining the transfer date, Assets acquired or transferred and liabilities assumed or relinquished, Accounting by the acquirer and transferor, Disclosure, Transitional provisions as well as the Effective date of the standard.

The effective date of the standard is for years beginning on or after 01 April 2019.

The legislature expects to adopt the standard for the first time in the 2020 annual financial statements.

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018

Notes to the Annual Financial Statements

3. New standards and interpretations (continued)

It is unlikely that the amendment will have a material impact on the legislature's annual financial statements.

GRAP 107: Mergers

The objective of this Standard is to establish accounting principles for the acquirer in a transfer of functions between entities not under common control. It requires an entity that prepares and presents financial statements under the accrual basis of accounting to apply this Standard to a transaction or other event that meets the definition of a transfer of functions. It includes a diagram and requires that entities consider the diagram in determining whether this Standard should be applied in accounting for a transaction or event that involves a transfer of functions or merger.

It furthermore covers Definitions, Identifying a transfer of functions between entities not under common control, The acquisition method, Recognising and measuring the difference between the assets acquired and liabilities assumed and the consideration transferred, Measurement period, Determining what is part of a transfer of functions, Subsequent measurement and accounting, Disclosure, Transitional provisions as well as the Effective date of the standard.

The effective date of the standard is for years beginning on or after 01 April 2019.

The legislature expects to adopt the standard for the first time in the 2020 annual financial statements.

It is unlikely that the amendment will have a material impact on the legislature's annual financial statements.

4. Property, plant and equipment

2018 2017 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation depreciation Valuation depreciation and and accumulated accumulated impairment impairment Computer Equipment 7 047 442 (3 074 612) 3 972 830 6 854 915 (2 056 465) 4 798 450 Furniture and office equipment 9 520 779 (3 667 712) 5 853 067 9 468 382 (2 473 423) 6 994 959 Leased Assets 3 140 718 (1 844 530) 1 296 188 1 956 022 (841 189) 1 114 833 Library Books 760 822 (207 355) 553 467 719 152 (170 168) 548 984 Other machinery and equipment 5 499 497 (1 645 304) 3 854 193 5 508 296 (1 104 670) 4 403 626 Transport Assets 5 677 604 (1 130 086) 4 547 518 5 677 604 (668 435) 5 009 169 Work in progress buildings 24 245 710 - 24 245 710 12 824 228 - 12 824 228 Total 55 892 572 (11 569 599) 44 322 973 43 008 599 (7 314 350) 35 694 249

Reconciliation of property, plant and equipment - 2018

Opening Additions Disposals Depreciation Total balance Computer Equipment 4 798 450 721 580 (271 374) (1 275 826) 3 972 830 Furniture and office equipment 6 994 959 72 584 (11 782) (1 202 694) 5 853 067 Leased Assets 1 114 833 1 184 696 - (1 003 341) 1 296 188 Library Books 548 984 41 670 - (37 187) 553 467 Other machinery and equipment 4 403 626 - (4 444) (544 989) 3 854 193 Transport Assets 5 009 169 - - (461 651) 4 547 518 Work in progress buildings 12 824 228 11 421 482 - - 24 245 710 35 694 249 13 442 012 (287 600) (4 525 688) 44 322 973

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Notes to the Annual Financial Statements Figures in Rand 2018 2017

4. Property, plant and equipment (continued)

Reconciliation of property, plant and equipment - 2017

Opening Additions Depreciation Total balance Computer Equipment 4 660 324 1 195 645 (1 057 519) 4 798 450 Furniture and office equipment 8 016 291 144 048 (1 165 380) 6 994 959 Leased Assets 1 232 135 469 971 (587 273) 1 114 833 Library Books 536 245 47 965 (35 226) 548 984 Other machinery and equipment 4 746 534 181 555 (524 463) 4 403 626 Transport Assets 3 481 019 1 918 334 (390 184) 5 009 169 Work in progress buildings 2 367 775 10 456 453 - 12 824 228 25 040 323 14 413 971 (3 760 045) 35 694 249

Pledged as security

None of the items of property, plant and equipment have been pledged as security.

A register containing the information required by section 30 of the Financial Management of Parliament and Provincial Legislature Act is available for inspection at the registered office of the legislature.

5. Intangible assets

2018 2017 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation amortisation Valuation amortisation and and accumulated accumulated impairment impairment Computer software 921 849 (304 414) 617 435 412 177 (135 849) 276 328

Reconciliation of intangible assets - 2018

Opening Additions Amortisation Total balance Computer software 276 328 509 672 (168 565) 617 435

Reconciliation of intangible assets - 2017

Opening Additions Amortisation Total balance Computer software 187 679 160 704 (72 055) 276 328

Pledged as security

None of the above intangible assets have been pledged as security.

6. Heritage assets

2018 2017 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation impairment Valuation impairment losses losses 31

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Notes to the Annual Financial Statements Figures in Rand 2018 2017

6. Heritage assets (continued) Art Collections, antiquities and 39 000 - 39 000 39 000 - 39 000 exhibits

Reconciliation of heritage assets 2018

Opening Total balance Art Collections, antiquities and exhibits 39 000 39 000

Reconciliation of heritage assets 2017

Opening Total balance Art Collections, antiquities and exhibits 39 000 39 000

Pledged as security

None of the above heritage assets pledged as security.

7. Investments

At fair value Listed shares 447 910 353 760 Legislature holds 5251 shares in Sanlam which has an active market value.

Non-current assets At fair value 447 910 353 760

Financial assets at fair value

Fair value hierarchy of financial assets at fair value

For financial assets recognised at fair value, disclosure is required of a fair value hierarchy which reflects the significance of the inputs used to make the measurements. The fair value hierarchy have the following levels:

Level 1 represents those assets which are measured using unadjusted quoted prices in active markets for identical assets.

Level 2 applies inputs other than quoted prices that are observable for the assets either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 applies inputs which are not based on observable market data.

Level 1 Sanlam Shares 447 910 353 760

The Legislature holds 5251 shares in Sanlam which had a market value of R85.37 per share on 31 March 2018 (2017:R67.37).

8. Operating lease asset (accrual)

Current liabilities (68 068) (2 242)

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NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Notes to the Annual Financial Statements Figures in Rand 2018 2017

9. Prepayments and advances

Travel and subsistence 609 411 29 250 Staff allowance 419 773 337 305 Political Party Advance 1 750 000 1 000 000 Rental Deposit 358 268 358 268 3 137 452 1 724 823

10. Inventories

Inventory 84 669 85 780

No inventory was written off during the year.

Management has taken a decision to discontinue holding inventory during the 2016-2017 financial year. Due to management decision consumables were procured directly and issued simultaneously to users. Management has assessed the value of inventory and concluded that the cost of internal control does not justify holding inventory nor have a negative impact on the mandate of Northern Cape Provincial Legislature.

Reconciliation 2018 2017 Opening 85 780 85 780 Purchases 976 283 779 065 Issues (977 394) (779 065) 84 669 85 780

Inventory pledged as security

No inventory was pledged as security.

11. Receivables from exchange transactions

Claims recoverable 1 046 667 499 890 Recoverable expenditure 229 197 133 051 Recoverable fruitless and wasteful expenditure - 43 432 Staff debt 398 566 616 097 Unallocated payments 343 102 491 929 Less: Allowance for impairment (269 454) (269 454) 1 748 078 1 514 945

Trade and other receivables pledged as security

No receivables from exchange transactions were pledged as security.

Credit quality of trade and other receivables

The trade and other receivables are neither past nor due nor impaired.

None of the financial assets that are fully performing have been renegotiated in the last year.

Fair value of trade and other receivables

Reconciliation of provision for impairment of trade and other receivables

Opening balance (269 454) (269 454)

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NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Notes to the Annual Financial Statements Figures in Rand 2018 2017

12. Cash and cash equivalents

Cash and cash equivalents consist of:

Bank balances 21 014 278 29 244 097 Other cash and cash equivalents 809 386 770 229 21 823 664 30 014 326

Cash and cash equivalents held by the legislature is available for use by the legislature. None of the bank accounts have been pledged as security.

The entity had the following bank accounts:

Account Bank Bank Bank Cash book: Cash book: Cash book: number/ statement: statement: statement: 31 March 31 March 31 March Description 31 March 31 March 31 March 2018 2017 2016 2018 2017 2016 ABSA Bank - 21 014 278 29 244 097 44 180 163 21 014 278 29 244 097 44 180 163 Cheque Account: 940000440 ABSA Bank - 809 386 770 229 777 582 809 386 770 229 777 582 Aid Assistance: 407866907 21 823 664 30 014 326 44 957 745 21 823 664 30 014 326 44 957 745

13. Finance lease obligation

Minimum lease payments due - within one year 1 270 124 1 091 770 - in second to fifth year inclusive 382 709 479 522 1 652 833 1 571 292 less: future finance charges (91 624) (101 972) Present value of minimum lease payments 1 561 209 1 469 320

Present value of minimum lease payments due - within one year 1 152 830 1 004 603 - in second to fifth year inclusive 408 379 464 717 1 561 209 1 469 320

Non-current liabilities 413 056 464 717 Current liabilities 1 147 682 1 004 603 1 560 738 1 469 320

14. Aid assistance

The aid assistance agreement states that funds which are not used should be paid back to LSS, therefore it is disclosed as a payable.

Aid assistance Opening balance 770 229 777 582 Aid Income 52 146 1 698 Aid expenditure (168 617) (9 051) 653 758 770 229

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Notes to the Annual Financial Statements Figures in Rand 2018 2017

15. Payables from exchange transactions

Trade payables 3 716 711 1 888 448 Bonus accrual 1 834 570 1 758 260 Leave accrual 13 402 368 5 987 942 Other payables 2 015 664 932 543 20 969 313 10 567 193

16. Interest, dividends and rent on land

Interest 1 733 343 2 797 431

17. Government grants and subsidies

Operating grants Appropriation 216 470 000 197 538 000

Appropriation

Included in above are the following grants and subsidies received:

Annual appropriation 191 315 000 173 627 000 Statutory appropriation 25 155 000 23 911 000 216 470 000 197 538 000

Government Grants and Subsidies

The following reconciliation for Government Grants and Subsidies:

Balance unspent at beginning of year 27 709 586 45 637 586 Current-year receipts 216 470 000 197 538 000 Conditions met (202 570 197) (187 991 000) Paid during the year (19 577 655) (27 475 000) 22 031 734 27 709 586

The balance is the total of the Funds Unitilised that form part of the Legislature's reserves.

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Notes to the Annual Financial Statements Figures in Rand 2018 2017

18. Employee related costs

Basic 61 573 342 58 551 287 Medical aid - company contributions 3 067 722 2 725 198 UIF 249 509 249 360 Leave pay provision charge 7 414 426 490 420 Pension 10 442 557 10 106 795 Service based other expense 56 428 690 559 Non-pensionable allowances 15 776 209 16 847 253 Compensative/circumstantial 14 229 233 11 323 575 Service bonus 4 394 848 3 361 677 117 204 274 104 346 124

Remuneration of MK Mmoiemang - Speaker

Annual Remuneration 1 066 677 1 021 036 Bonuses 88 890 85 086 Public Office Bearers allowance 120 000 120 000 Contributions to UIF, Medical and Pension Funds 286 562 276 293 Motor car subsistence 144 000 144 000 Other 271 666 255 311 1 977 795 1 901 726

Remuneration of TJ Beukes - Deputy Speaker

Annual Remuneration 816 859 776 515 Bonuses 68 072 64 710 Public Office Bearers allowance 120 000 120 000 Contributions to UIF, Medical and Pension Funds 230 353 221 276 Motor car subsistence 96 000 96 000 Other 230 148 215 691 1 561 432 1 494 192

Remuneration of PB Moopelwa - Secretary

Annual Remuneration 1 074 080 988 867 Car allowance 388 885 388 885 Contributions to UIF, Medical and Pension Funds 1 785 1 785 Housing Allowance 338 465 312 048 Basic salary backdated 19 624 65 208 Other 182 284 497 986 2 005 123 2 254 779

Remuneration of HJ Botha - Executive Manager: Lawmaking and Housebusiness

Annual Remuneration 853 190 771 439 Car Allowance 41 072 50 349 Bonuses 72 538 69 084 Contributions to UIF, Medical and Pension Funds 262 934 248 744 Housing allowance 12 725 12 725 Basic salary backdated 17 271 66 019 Other 191 038 188 642 1 450 768 1 407 002

Remuneration of GR Botha - Chief Financial Officer

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NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Notes to the Annual Financial Statements Figures in Rand 2018 2017

18. Employee related costs (continued) Annual Remuneration 901 818 778 319 Car Allowance 301 704 299 908 Basic salary back dated 16 477 111 073 Contributions to UIF, Medical and Pension Funds 192 606 186 600 Other 117 886 117 001 1 530 491 1 492 901

Remuneration of NG Siyo - Acting Executive Manager: Corporate Services

Annual Remuneration 725 165 316 006 Acting allowance 73 670 43 317 Car allowance 96 210 45 260 Contributions to UIF, Medical and Pension Funds 220 508 108 027 Housing Allowance 74 530 35 061 Basic salary backdated 14 680 63 550 Other 101 982 64 579 1 306 745 675 800

NG Siyo was appointed as of 12 October 2016.

Remuneration of NH Borchard - Acting Executive Manager: Commitees, Research and Information Services, Public Education and Communication

Annual Remuneration 652 957 298 465 Acting Allowance 147 340 118 286 Car allowance 60 357 28 394 Contributions to UIF, Medical and Pension Funds 140 216 62 861 Housing allowance 40 368 18 990 Other 147 661 63 860 Bonuses 55 515 - Basic salary backdated 13 217 - 1 257 631 590 856

NH Borchard was appointed as of 12 October 2016.

19. Payments for financial assets

Other debts written off 703 285 707 055 Interest on finance leases 6 312 56 957 709 597 764 012

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NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Notes to the Annual Financial Statements Figures in Rand 2018 2017

20. General expenses

Administrative fees 500 294 577 410 Advertising 728 385 594 016 Agency and support services - 20 037 Auditors remuneration 1 907 611 3 919 880 Bursaries 143 037 114 020 Capital expenditure 36 512 - Catering 858 774 643 915 Communication 1 692 466 2 472 654 Computer expenses 707 287 6 941 773 Consultants: Business and advisory services 1 173 652 1 856 292 Consulting and professional fees 13 336 9 111 Consumables 1 283 618 943 650 Contractors 546 473 892 756 Entertainment 29 952 35 274 Fleet 440 857 403 079 Inventory 7 995 53 520 Operating leases 9 694 028 3 942 462 Other expenses 3 554 441 1 690 108 Property payments 3 804 369 2 012 748 Training 582 300 131 504 Travel - local 10 869 425 9 998 190 Travel - overseas 1 859 709 1 278 426 Venue expenses 567 176 153 568 41 001 697 38 684 393

21. Transfers and subsidies

Departmental agencies 440 696 403 500 Non-profit institutions 42 376 566 30 685 000 42 817 262 31 088 500

22. Fair value adjustments

Other financial assets  Investments 94 150 (5 881)

23. Auditors' remuneration

Fees 1 907 611 3 919 880

24. Operating lease

Buildings 8 994 490 3 753 130 Equipment and machinery 699 538 189 332 9 694 028 3 942 462

25. Travel cost

Travel - Local 10 869 425 9 998 190 Travel - overseas 1 859 709 1 278 426 12 729 134 11 276 616

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Notes to the Annual Financial Statements Figures in Rand 2018 2017

26. Cash generated from operations

(Deficit) surplus (3 657 747) 9 269 941 Adjustments for: Depreciation and amortisation 4 694 253 3 832 099 Gain on sale of assets and liabilities 287 600 - Revenue utilised 13 899 803 9 547 000 Fair value adjustments (94 150) 5 881 Movements in operating lease assets and accruals 65 826 (103 193) Departmental revenue transferred to accumulated surplus 1 410 671 2 905 495 Changes in working capital: Inventories 1 111 - Receivables from exchange transactions (233 133) 1 018 097 Prepayments and advances (1 412 629) (850 020) Payables from exchange transactions 10 402 124 1 449 587 25 363 729 27 074 887

27. Financial instruments disclosure

Categories of financial instruments

2018

Financial assets

At fair value At amortised Total cost Receivables from exchange transactions - 1 748 078 1 748 078 Investment 447 910 - 447 910 Cash and cash equivalents - 21 823 664 21 823 664 447 910 23 571 742 24 019 652

Financial liabilities

At amortised Total cost Finance leases 1 560 738 1 560 738 Payables from exchange transactions 20 969 313 20 969 313 Aid assistance 660 194 660 194 23 190 245 23 190 245

2017

Financial assets

At fair value At amortised Total cost Receivables from exchange transactions - 1 514 945 1 514 945 Cash and cash equivalents - 30 014 326 30 014 326 Investment 353 760 - 353 760 353 760 31 529 271 31 883 031

Financial liabilities

At amortised Total cost Finance leases 1 469 320 1 469 320

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Notes to the Annual Financial Statements Figures in Rand 2018 2017

27. Financial instruments disclosure (continued) Payables from exchange transactions 10 567 192 10 567 192 Aid assistance 770 229 770 229 12 806 741 12 806 741

28. Commitments

Authorised capital expenditure

Already contracted for but not provided for  Property, plant and equipment 9 353 920 16 882 055  Intangible assets 523 824 2 147 589 9 877 744 19 029 644

Total capital commitments Already contracted for but not provided for 9 877 744 18 969 644

Authorised operational expenditure

Already contracted for but not provided for  Operational commitments 831 494 1 280 130

Total operational commitments Already contracted for but not provided for 831 494 -

Total commitments

Total commitments Authorised capital expenditure 9 877 744 18 969 644 Authorised operational expenditure 831 494 - 10 709 238 18 969 644

This committed expenditure relates to plant and equipment and intangible assets and will be financed by available bank facilities, retained surpluses, mortgage facilities, existing cash resources, etc.

Operating leases - as lessee (expense)

Minimum lease payments due - within one year 800 067 1 779 890 - in second to fifth year 886 381 - 1 686 448 1 779 890

The operating lease disclosure is based on the contracted amounts, i.e payments.

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Notes to the Annual Financial Statements Figures in Rand 2018 2017

29. Contingencies

Litigation is in process against Davids for the recovery of monies to the value of R38 703.

Litigation is in process against Kola for the recovery of taxes of R12 655 paid in advance by NCPL on behalf of the former employee.

Litigation is in process against Tshandu for the recovery of taxes of R63 486 paid in advance by NCPL.

Litigation is process against COPE and the Speaker of the NCPL for the recovery of cost to the value of R237 237.

Litigation is in process against the Department Environment and Conservation for the recovery of Provincial Gazette publication cost to the value of R15 037.

Litigation is in process against Khara Hais Municipality for the recovery of Provincial Gazette publication cost to the value of R6 370.

Litigation is in process against Phokwane Municipality for the recovery of Provincial Gazette publication cost to the value of R15 037.*

The legislature is currently disputing an amount of R1 218 481 with the South African Revenue Services which was deducted and it is probable that the proceedings will result in the recovery of the full amount as it was incorrectly deducted.

Arbitration is in process against the Legislature to pay monies to the value of R553 240.

30. Related parties

Relationships Controlled entity Northern Cape Political Party Fund (NCPPF) Services in kind Refer to note 38 Members of key management MK Mmoiemang (Speaker) JT Beukes (Deputy Speaker) PB Moopelwa (Secretary) HJ Botha (Executive manager: Lawmaking and House Business) GR Botha (Chief Financial Officer) NG Siyo (Acting Executive Manager: Corporate services) NH Borchard (Acting Executive Manager: Committees, Research and Information Services, Public Education and Communication)

Related party transactions

Transfer payments to related parties Northern Cape Political Party Fund (NCPPF) 14 816 000 14 112 000

Key management information

Class Description Speaker to the Legislature MK Mmoiemang Deputy Speaker JT Beukes Secretary to the Legislature PB Moopelwa Acting Executive manager: Lawmaking HJ Botha and House Business Chief Financial Officer GR Botha Acting Executive Manager: Corporate NG Siyo services Acting Executive Manager: Committees, NH Borchard Research and Information Services, Public Education and Communication

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NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Notes to the Annual Financial Statements Figures in Rand 2018 2017

31. Prior period errors

The correction of the error results in adjustments as follows:

Statement of financial position Intangible assets - 276 328 Payables from exchange transactions - 7 746 203 Employee benefits - (7 746 203)

Errors

1. Employee benefits were not disclosed correctly as part of payables from exchange transactions as accruals in the prior year. The bonus accrual amount is R1 758 260 and the leave accrual amount is R5 987 943. 2. Intangible assets were initially recognised incorrectly under Directive 8. This has been corrected.

Statement of financial position 1. Employee benefits (7 746 203) 1. Payables from exchange transactions 7 746 203 2. Intangible assets - previously stated 7 044 732 2. Intangible assets - adjustment (6 768 404) 276 328

32. Risk management

Financial risk management

The Legislature's exposure to financial risk is minimal due to its nature of activities which are wholly funded from the provincial budget. The Legislature is not allowed to borrow funds and issue guarantees.

Liquidity risk

The Legislature’s risk to liquidity is a result of the funds available to cover future commitments. The Legislature manages liquidity risk through an ongoing review of future commitments and credit facilities.

Cash flow forecasts are prepared and adequate utilised borrowing facilities are monitored.

The maturity dates of the Legislature's liabilities are set out below

Less than 1 year Between 1 and 2 years Figures in Rand 2018 2017 2018 2017 Finance lease obligation 1 147 682 1 004 603 413 056 464 717 Payables from exchange transactions 20 969 313 10 567 192 - - Aid assistance 660 194 770 229 - - 22 777 189 12 342 024 413 056 464 717

Credit risk

Credit risk consists mainly of cash deposits, cash equivalents and trade debtors. The Legislature only holds cash with major banks with high quality credit standing and limits exposure to any one counter-party.

Financial assets exposed to credit risk at year end were as follows:

Financial instrument 2018 2017 Receivables from exchange transactions 1 748 078 1 514 945 Investment 447 910 353 760 Cash and cash equivalents 21 823 664 30 014 326

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Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Notes to the Annual Financial Statements Figures in Rand 2018 2017

32. Risk management (continued)

Market risk

Interest rate risk

Interest rate risk is defined as the risk that the fair value or future cash flows associated with a financial instrument will fluctuate in amount as a result of market interest changes. The Legislature's exposures to interest rates on financial assets and financial liabilities are detailed below:

At year-end, financial instruments exposed to interest rate risk due to being linked to prime interest rate were as follows: - Cash and cash equivalents - Finance Lease Obligation

The Legislature's interest rate risk arises from the above financial instruments being linked to the prime interest rate. The prime interest rate is used as a factor in calculating the interest received or interest charged on these financial instruments. Fluctuations in the prime interest rate during the year give rise to a possible interest rate risk affecting the Legislature.

Foreign exchange risk

The Legislature does not enter into significant foreign currency transactions and has had very limited exposure to foreign currency risk.

33. Going concern

We draw attention to the fact that at 31 March 2018, the legislature had accumulated surplus of R 15 614 832 and that the legislature's total assets exceed its liabilities by R 48 969 303.

The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

34. Events after the reporting date

No events after reporting period took place.

35. Unauthorised expenditure

Unauthorised expenditure 3 881 878 3 881 878

Unauthorised expenditure relates to amount that were overspend in previous years and related cashflow funded from accumulated surplus. It is disclosed as a current receivable as soon as approval is granted by the Legislature and Treasury funds such expenditure.

36. Fruitless and wasteful expenditure

Opening balance 1 626 412 1 591 669 Fruitless and wasteful expenditure current year 6 311 34 743 1 632 723 1 626 412

2018 Fruitless and wasteful expenditure Interest and pentalties 6 311

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NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Notes to the Annual Financial Statements Figures in Rand 2018 2017

37. Irregular expenditure

Opening balance 20 953 189 20 824 630 Add: Irregular Expenditure - current year - 128 559 20 953 189 20 953 189

38. Services in kind

The South African Police Services provides National Key Point Access control services to the Northern Cape Provincial Legislature at no cost to the Legislature. These services were provided for the entire reporting period.

The Northern Cape Provincial Legislature received a free service in the form of training for members, funded by National Parliament (Legislature Support Sector Funding).

The Northern Cape Provincial Legislature (NCPL) occupies complexes which are owned by the Northern Cape Department of Roads and Public Works (NCDRPW ), NCPL occupied these complexes for free and did not pay any cost to NCDRPW .

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NORTHERN CAPE PROVINCIAL LEGISLATURE, VOTE 2

Northern Cape Provincial Legislature Annual Financial Statements for the year ended 31 March 2018 Notes to the Annual Financial Statements Figures in Rand 2018 2017

39. Budget differences

Material differences between budget and actual amounts

Sale of goods and servicess -Less garnishee orders implemented as anticipated. The market forces not in control of NCPL.

Interest dividends and rent on land - Less cash on hand due to increase in NCPL spending trends which resulted in less interest received.

Government grants & subsidies - The variance is immaterial.

Personnel - The variance is immaterial.

Transfers and subsidies - Overspending due to transfers to political parties in respect of study tour approved in 2016/17, but not properly appropriated in 2017/18. Virement was applied and approved to defray overspending.

Goods and services - The variance is immaterial.

Payment for capital assets - Underspending due to project delay beyond the control of NCPL.

Differences between budget and actual amounts basis of preparation and presentation

The budget and the accounting bases differ. The annual financial statements for the are prepared on the accrual basis using a classification based on the nature of expenses in the statement of financial performance. The annual financial statements differ from the budget, which is approved on the cash basis and which deals only with the general government sector that excludes government business enterprises and certain other non-market government entities and activities.

The amounts in the annual financial statements were recast from the accrual basis to the cash basis and reclassified by functional classification to be on the same basis as the final approved budget. In addition, adjustments to amounts in the annual financial statements for timing differences associated with the continuing appropriation and differences in the entities covered (government business enterprises) were made to express the actual amounts on a comparable basis to the final approved budget. The amounts of these adjustments are identified in the following table.

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Northern Cape Provincial Legislature Vote 2

Northern Cape Provincial Legislature ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2018 ANNUAL REPORT 2017/18

vigilant always for ISBN 978-0-621-46758-1 PR 393/2018 our people

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