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Annual Report, Vote 9 Free State Department of Public Works and Infrastructure 2018/2019 Annual Report, Vote 9 DEPARTMENT OF PUBLIC WORKS AND INFRASTRUCTURE Province of the Free State VOTE NO. 09 ANNUAL REPORT 2018/2019 FINANCIAL YEAR 1 Free State Department of Public Works and Infrastructure 2018/2019 Annual Report, Vote 9 2 Free State Department of Public Works and Infrastructure 2018/2019 Annual Report, Vote 9 CONTENTS PART A: GENERAL INFORMATION 4 1 DEPARTMENT GENERAL INFORMATION 6 2 LIST OF ABBREVIATIONS/ACRONYMS 7 3. FOREWORD BY THE MEC 9 4. REPORT OF THE ACCOUNTING OFFICER 10 5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT 36 6. STRATEGIC OVERVIEW 37 6.1 Vision 37 6.2 Mission 37 6.3 Values 37 7. LEGISLATIVE AND OTHER MANDATES 38 8. ORGANISATIONAL STRUCTURE 39 9. ENTITIES REPORTING TO THE MEMBER OF THE EXECUTIVE COUNCIL 40 PART B: PERFORMANCE INFORMATION 42 1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES 44 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE 44 2.1 Service Delivery Environment 44 2.2 Service Delivery Improvement Plan 46 2.3 Organisational environment 52 2.4 Key Policy developments and legislative changes 52 3. STRATEGIC OUTCOME ORIENTED GOALS 52 4. PERFORMANCE INFORMATION BY PROGRAMME 54 4.1 Programme 1 54 4.2 Programme 2 63 4.3 Programme 3 72 5. TRANSFER PAYMENTS 76 5.1 Transfer payments to municipalities 76 6. CONDITIONAL GRANTS 77 6.1 Conditional grants and earmarked funds paid 77 7. DONOR FUNDS 78 7.1 Donor funds received 78 8 CAPITAL INVESTMENT 79 8.1 Capital investment, maintenance and asset management plan 79 PART C: GOVERNANCE 84 1. INTRODUCTION 86 2. RISK MANAGEMENT 86 3. FRAUD AND CORRUPTION 89 4. MINIMISING CONFLICT OF INTEREST 90 5. CODE OF CONDUCT 91 6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES 91 7. PORTFOLIO COMMITTEES 92 8. SCOPA RESOLUTIONS 93 9. PRIOR MODIFICATIONS TO AUDIT REPORTS 94 10. INTERNAL CONTROL UNIT 97 11. INTERNAL AUDIT AND AUDIT COMMITTEES 97 12. AUDIT COMMITTEE REPORT 100 PART D: HUMAN RESOURCE MANAGEMENT 102 1. INTRODUCTION 104 2. OVERVIEW OF HUMAN RESOURCES 104 3. HUMAN RESOURCES OVERSIGHT STATISTICS 106 PART E: FINANCIAL INFORMATION 128 1. REPORT OF THE AUDITOR GENERAL 130 2. ANNUAL FINANCIAL STATEMENTS 136 3 Free State Department of Public Works and Infrastructure 2018/2019 Annual Report, Vote 9 PART A: General Information 4 Free State Department of Public Works and Infrastructure 2018/2019 Annual Report, Vote 9 CONTENTS 1. DEPARTMENT GENERAL INFORMATION 6 2. LIST OF ABBREVIATIONS/ACRONYMS 7 3. FOREWORD BY THE MEC 9 4. REPORT OF THE ACCOUNTING OFFICER 10 5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE 36 ANNUAL REPORT 6. STRATEGIC OVERVIEW 37 6.1 Vision 37 6.2 Mission 37 6.3 Values 37 7. LEGISLATIVE AND OTHER MANDATES 38 8. ORGANISATIONAL STRUCTURE 39 9. ENTITIES REPORTING TO THE MEMBER OF THE EXECUTIVE COUNCIL 40 5 Free State Department of Public Works and Infrastructure 2018/2019 Annual Report, Vote 9 1. DEPARTMENT GENERAL INFORMATION PHYSICAL ADDRESS: 3rd Floor Room 310 OR Tambo House Corner St Andrews and Markgraaf Streets BLOEMFONTEIN POSTAL ADDRESS: P.O. Box 7551 BLOEMFONTEIN 9300 TELEPHONE NUMBER/S: 051 492 3909/3787 E-MAIL ADDRESS: [email protected] WEBSITE ADDRESS: www.publicworks.fs.gov.za 6 Free State Department of Public Works and Infrastructure 2018/2019 Annual Report, Vote 9 2. LIST OF ABBREVIATIONS/ACRONYMS AR Annual Report AFS Annual Financial Statements AGSA Auditor-General of South Africa AOPO Audit of Predetermined Objectives APP Annual Performance Plan BAS Basic Accounting System BBBEE Broad Based Black Economic Empowerment BOT Build, Operate and Transfer CAATs Computer Assisted Auditing Techniques C-AMP Custodian-Asset Management Plan CDP Contractor Development Programme CEO Chief Executive Officer CFO Chief Financial Officer CGICT Corporate Governance of Information Communication Technology CIP Compulsory Induction Programme CIPC Companies and Intellectual Property Commission COGTA Cooperative Governance and Traditional Affairs CPIX Consumer Price Index CSO Chief Security Officer CVPs Constitutional Values and Principles CWP Community Works Programme CYCC Children Youth Community Centre DC District Centre DESTEA Economic, Small Business Development, Tourism and Environmental Affairs DLTC Driving Licence Testing Centre DORA Division of Revenue Act DPSA Department of Public Service and Administration ERC Education Resource Centre EPWP Expanded Public Works Programme ERM Enterprise Risk Management EXCO Executive Council FOHOD Forum of Head of Departments FSIDMS Free State Infrastructure Delivery Management System FSPG Free State Provincial Government FSTDI Free State Training and Development Institute GDP Gross Domestic Product GIAMA Government Immovable Asset Management Act HOD Head of Department HR Human Resources HRC Human Rights Commission IAF Internal Audit Function IAR Immovable Asset Register ICT Information Communication Technology IESBA International Ethics Standards Board for Accountants IDMS Infrastructure Delivery Management System IPPF International Professional Practices Framework ISAs International Standards on Auditing ISPPIA International Standard of the Professional Practice of Internal Auditing IYM In-Year-Monitoring KCM Key Control Matrix LRA Labour Relations Act 7 Free State Department of Public Works and Infrastructure 2018/2019 Annual Report, Vote 9 MCS Modified Cash Standard MEC Member of Executive Council MISS Minimum Information Security Standards MPAT Management Performance Assessment Tool MPL Member of the Provincial Legislature MPSA Minister of Public Service and Administration MTEF Medium Term Expenditure Framework MTSF Medium Term Strategic Framework NARYSEC National Rural Youth Service Corps NDP National Development Plan NDPW National Department of Public Works NIGTT National Inter-Governmental Task Team NYS National Youth Service OHS Occupational Health and Safety OHSA Occupational Health and Safety Act OSD Occupation Specific Dispensation OTP Office of the Premier PAA Public Audit Act PSA Public Service Act PCF Premier’s Coordinating Forum PFMA Public Finance Management Act PMTEC Provincial Medium Term Expenditure Committee PPP Public Private Partnerships PPPFA Preferential Procurement Policy Framework Act PROPAC Provincial Public Accounts Committee PRT Police, Roads and Transport PSCBC Public Service Coordinating Bargaining Council PSIRA Private Security Industry Regulatory Authority PSRMF Public Sector Risk Management Framework REMC Risk and Ethics Management Committee RPL Recognition of Prior Learning RWOPS Remunerative Work Outside Public Service SALGA South African Local Government Association SAPS South African Police Services SARS South African Revenue Service SASSA South African Social Security Agency SMME Small Medium and Micro Enterprises SMS Senior Management Service SCM Supply Chain Management SCOA Standard Chart of Accounts SCOPA Standing Committee on Public Accounts SDIP Service Delivery Improvement Plan SITA State Information Technology Agency SSO Senior Security Officer S&T Subsistence & Travelling TR Treasury Regulations TRP Township Revitalisation Programme U-AMPs User Immovable Asset Management Plans VO’s Variation Orders VOIP Voice Over Internet Protocol WO Work Opportunities WSP Workplace Skills Plan 8 Free State Department of Public Works and Infrastructure 2018/2019 Annual Report, Vote 9 3. FOREWORD BY THE MEMBER OF EXECUTIVE COUNCIL: PUBLIC WORKS, INFRASTRUCTURE AND HUMAN SETTLEMENTS The Department of Public Works and Infrastructure is central in government fight against poverty, unemployment and inequality. This is because of the centrality of infrastructure development drive for inclusive economic growth and development. The financial year 2018/2019 was the last year for the five year term that begun in 2014 with the two over-arching strategic themes: radical economic transformation and improving service delivery. The theme for the financial year under review was: “Celebrating 100 years of Nelson Mandela, a life dedicated to peace, unity and a better life for all”. It was therefore, appropriate to end the 5th term by celebrating the life and times of Tata Mandela continuing to build unity, peace and a better life for all. Looking back on the 2018/2019 financial year, the Department realised some tangible and recognizable considerable achievements, but there were some challenges as well. The slow economic growth and shredding of jobs did not spare the Province, as it hampered efforts of fighting against poverty. The Expanded Public Works Programme (EPWP) has been successfully implemented by the Province to provide work opportunities and income support to poor and unemployed people through the labour-intensive delivery of public, community assets and services, thereby positively contributing to local community development. As at the end of March 2019, 218 young people participated in the National Youth Service (NYS); which is a 100% youth special intervention inclusive of work integrated placements in the Department of Public Works and Infrastructure. To upscale employment creation efforts, an additional budget of R104.349 million was allocated by National Treasury to Free State Province in the form of the EPWP Conditional Grants to Provincial Departments and Municipalities. Oversight has been strengthened to ensure that the grants are optimally utilised for the improvement in the livelihoods of our vulnerable communities. These allocations though, remain inadequate, and pose a risk of protests because not all unemployed communities are able to receive opportunities
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