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Free State Legislature Annual 2017/18 FREE STATE LEGISLATURE ANNUAL REPORT “An Activist Legislature that “ Champions Democracy FREE STATE LEGISLATURE ANNUAL REPORT For the year ending 31 March 2018 VOTE 2 FREE STATE LEGISLATURE ANNUAL REPORT For the year ending 31 March 2018 VOTE 2 FREE STATE LEGISLATURE FREE STATE LEGISLATURE FREE STATE LEGISLATURE ANNUAL REPORT 2017/18 Hon MG Qabathe Speaker to the Legislature OF CONTENT TABLE I have the honor of submitting the Annual Report of the Free State Legislature for the period 1 April 2017 to 31 March 2018 _______________ TL Mofokeng Secretary to the Legislature 31 May 2018 FREE STATE LEGISLATURE FREE STATE LEGISLATURE PART A: GENERAL INFORMATION 07 1. Legislature’s General Information 08 2. List of abbreviations / acronyms 08 3. Foreword by the Speaker 09 FREE STATE LEGISLATURE 4. Report of the Accounting Officer 10 ANNUAL REPORT 4.1 Overview of the operations of the Legislature 10 4.2 Overview of the financial results of the Legislature 10 2017/18 4.2.1 Virements/ roll overs 10 4.2.2 Discontinued activities 10 4.2.3 New or proposed activities 10 4.2.4 Supply chain Management 10 OF CONTENT TABLE 4.2.5 Gifts and donations received in kind from non-related parties 10 4.2.6 Exemptions and deviations received from the National Treasury 10 4.2.7 Events after the reporting date 11 4.2.8 Other 11 4.3 Statement of responsibility and confirmation of the accuracy of the Annual Report 12 4.4 Strategic Overview 13 4.4.1 Vision 13 4.4.2 Mission 13 4.4.3 Values 13 4.5 Legislative and other mandates 14 4.6 Organisational Structure 19 4.7 Political landscape of the Free State Legislature 20 PART B: PERFORMANCE INFORMATION 5. Delegated Authority 23 5.1 Aim of the Vote 24 5.2 Service Delivery Outcomes 24 5.3 Organisational Environment 24 5.4 Key policy developments and legislation changes 25 5.5 Strategic Outcome Oriented Goals 25 5.6 Performance Information by Programme 26 5.7 Strategic objectives, performance indicators, planned targets and actual achievements 26 FREE STATE LEGISLATURE 5.8 Progamme 1: Administration 26 5.9 Progamme 2: Facilities and Benefits to Political Parties 33 5.10 Progamme 3: Parliamentary Services 34 PART C : GOVERNANCE 38 6.1 Introduction 38 6.2 Risk Management 38 6.3 Fraud and Corruption 39 6.4 Minimising conflict of interest 39 6.5 Code of Conduct 39 TABLE OF CONTENT TABLE 6.6 Health, Safety and Environmental Issues 39 6.7 Portfolio Committees 39 6.8 PROPAC Resolutions 39 6.9 Prior modifications to audit reports 39 6.10 Internal Control Unit 40 FREE STATE LEGISLATURE 6.11 Internal Audit and Audit Committee 40 Part A: General Information 6.12 Profiles: Audit Committee 40 6.13 Report of the Audit Committee 41 PART D : HUMAN RESOURCE MANAGEMENT 44 7.1 Leave utilisation 56 7.2 Labour relations 61 7.3 Skills development 64 7.4 Injury on duty 69 7.5 Utilisation of Consultants 69 PART E :PART FINANCIAL E : FINANCIAL INFORMATION INFORMATION 70 Report of the Auditor-General 72 Statement of Financial Position 80 Statement of Financial Performance 81 Statement of changes in Net Assets 82 Cash Flow Statement 83 AccountingStatement of Policies comparison of Budget and Actual Amounts 84 Accounting Policies 85 Notes to the Annual Financial Statements 104 FREE STATE LEGISLATURE Annual Report 2017/18 PART A GENERAL INFORMATION PART A: GENERAL INFORMATION 1. Legislature’s General Information Free State Legislature Physical Address: 41 Charlotte Maxeke Street Bloemfontein 9301 Postal Address: Private Bag X20561 Bloemfontein 9301 051-407 1100 Website address: www.fsl.gov.za 2. List of abbreviations / acronyms AO Accounting Officer AGSA Auditor-General of South Africa AFS Annual Financial Statements CFO Chief Financial Officer DORA Division of Revenue Act EA Executive Authority HR Human Resources PFMA Public Finance Management Act (Act 29 of 1999) FMPPLA Financial Management of Parliament and Pro- vincial Legislatures Act (Act 10 of 2009) SCOPA Standing Committee on Public Accounts 8 3. Foreword by the Speaker The Annual Report and Financial Statements of the Free State Legislature for the 2017/2018 financial year provide an overview of the Legislature’s implementation of its core constitutional obligations, and these obligations form the basis of the Legislature’ strategic focus, namely an informed citizenry that participates meaningfully in the programmes of the Legislature and the enhanced accountability of the executive arm of the provincial government. I would like to express my profound appreciation to Members of the Legislature, the Secretary to the Legislature and his management team and all employees of the Legislature for their support during the year under review. ________________ Hon MG Qabathe Speaker: Free State Legislature FREE STATE LEGISLATURE Speaker: Hon. M. G. Qabathe Free State Legislature Annual Report 2017/18 9 4. Report of the Accounting Officer Report by the Accounting Officer to the Executive Authority, the Speaker of the Legislature, and the Free State Legislature for the Annual Financial Statements for the financial year ending 31 March 2018 provides an overview of the financial performance and challenges of the Free State Legislature during the year under review. 4.1 Overview of the operations of the Legislature The operations of the Legislature are driven by its annual programme. Portfolio Committees are responsible to perform an oversight role and a customized oversight model was tabled in the House. 4.2 Overview of the financial results of the Legislature The fifth Legislature provided services in terms of its constitutional mandate. Votes funds of R243,056 were appropriated. The Legislature prepares its annual financial statements in accordance to Generally Recognised Accounting Practices (GRAP). The Legislature recorded a deficit of R6 934 782 and total liabilities exceed its assets by R5 009 254. Whilst statements have been prepared to a going concern, the recorded deficit is a matter which have to be addressed, as the institution would not want to be viewed with doubt on its ability to function effectively. The Legislature is compelled to also report in terms of modified cash principles, in support of consolidation of the provincial government budget. This reporting is disclosed under part B of the Performance Information as well as the statement of budget comparison. 4.2.1 Virements / roll overs A virement of R100,000 was done between Programme 1 : Administration and Programme 3 : Parliamentary Services. 4.2.2 Discontinued activities No activities can be reported as discontinued. 4.2.3 New or proposed activities Activities were performed as per Legislature programme. 4.2.4 Supply Chain Management The high vacancy rate as well as capacity constraints do have a negative bearing on the SCM operations. 4.2.5 Gifts and donations received in kind from non-related parties No gifts were received. 4.2.6 Exemptions and deviations received from the National Treasury None recorded. 10 4.2.7 Events after the reporting date No events can be reported upon or took place after the reporting date and the date of approval of the annual financial statements that could materially influence the state of financial affairs. 4.2.8 Other Related party transactions in kind refer to the use of the Fourth Raadsaal for convening of sittings of the Legislature. The Department of Public Works is currently responsible for maintenance while the South African Police who provides protection services at the Fourth Raadsaal. The Fourth Raadzaal is a National Key Point. No material fact or circumstances which may have an effect on the understanding of the financial state of affairs can be reported upon. I wish to place on record my appreciation towards the Speaker and Deputy Speaker, Members of the Legislature as well as management and staff who constructively supported the institution throughout the reported period. APPROVAL The annual financial statements set out on pages 80 to 119 have been approved. ___________________ TL Mofokeng Secretary to the Legislature Free State Legislature Annual Report 2017/18 11 4.3 Statement of responsibility and confirmation of the accuracy of the Annual Report To the best of my knowledge and belief, I confirm the following: All information and amounts disclosed throughout the annual report are consistent. The annual report is complete, accurate and is free from any omissions. The Annual Financial Statements have been prepared in accordance with the general recognised accrual principles (GRAP) standard and the relevant frameworks and guidelines issued by the National Treasury. I am responsible for the preparation of the annual financial statements and for the findings made in this information. The Accounting Officer is responsible for establishing, and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements. The external auditors are engaged to express an independent opinion on the annual financial statements. In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the Legislature for the financial year ended 31 March 2018. Yours faithfully ___________________ T L Mofokeng Secretary to the Legislature 31 May 2018 12 4.4. Strategic Overview 4.4.1 Vision A People Centered Legislature that Champions Democracy 4.4.2 Mission A modern institution of democracy that promotes good governance and a culture of human rights through public participation, law-making and oversight that is vigilant, dynamic, proactive and responsive. 4.4.3 Values The work of the Free State Legislature is conducted on a platform of a formalised set of values. The values are the set of beliefs that guide the management of the Legislature.
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