LIMPOPO PROVINCIAL GOVERNMENT REPUBLIC OF SOUTH AFRICA
OFFICE OF THE PREMIER
IJiiff'' , . , . ~ . . ~ . ~·,~n"·-C ------~-----~------ . WORKING TOGETHER WE CAN DO MORE Limpopo Office of the Premier An nual Report 2012/13 FY Submitting the Annual Report to the Executive Authority Mr C.S. Mathabatha Premier of Limpopo Province ~a 6-s._.pz, ------~1------ 1 Limpopo Office of the Premier Annual Report 2012/13 FY PREMIER'S FOREWORD It is with honour and gratitude that I, Chupu Stanley Mathabatha, the Premier of Limpopo Government acknowledges receipt of the Annual Report for 2012/13 financial year. It is worth noting that in the previous financial year, the Provincial Government of Limpopo has continued in its efforts to build a better life for all its people. The province has continued to create a conducive environment of our people to aspire for a better future in a just society. The Office of the Premier continues with its task of guiding the entire provincial administration in accordance with the provisions of the Constitution. All provincial Departments have shown significant progress towards meeting national standards in improving service delivery through the support of the Office of the Premier and the Provincial Treasury regardless of the challenges each department faces. The Annual report outlines progress made by the Office in implementing the Annual Performance Plan of the year under review. The Office will continue to provide strategic leadership and ensure that basic services are delivered timeously and speedily to our communities. As the ANC led government, we will continue to work side -by side with our communities to ensure that our province continues to be prosperous in our quest to provide a better life for all. Thank you. Mf!!lff:.fhabatha~;r;~ Limpopo Premier 2 Limpopo Office of the Premier Annual Report 2012/13 FY TABLE OF. GONTENTS PREMIER'S FOREWORD ...... 2 PART A: GENERAL INFORMATION ...... 7 1.1 VISION ...... 7 1.2. MISSION ...... 7 1.3. VALUES ...... 7 1.4 ORGANISATIONAL STRUCTURE...... 7 1.4.1 FUNCTIONAL PROGRAMMES ...... 7 1.5 LEGISLATIVE AND OTHER MANDATES...... 8 1.5.1 CONSTITUTIONAL MANDATES ...... 8 1.5.2 LEGISLATIVE MANDATES ...... 9 1.6 ACCOUNTING OFFICER'S OVERVIEW ...... 11 2. INFORMATION ON PREDETERMINED OBJECTIVES FOR 2012/13 ...... 12 2.1 Overall Performance...... 14 2.1.1 Voted Funds...... 14 2.1.2 AIM OF THE VOTE ...... 14 2.1.3 SUMMARY OF PROGRAMMES ...... 14 2.1.3.1 PROGRAMME 1 ...... 14 2.1.3.2 PROGRAMME 2 ...... 15 2.1.3.3 PROGRAMME 3 ...... 15 2.2 Key strategic objectives achievements ...... 15 3 Limpopo Office of the Premier Annual Report 2012/13 FY 2.2.1 Overview of the service delivery environment for 2012/13 ...... 16 2.2.2 Overview of the organizational environment for 2012/13 ...... 16 2.2.3 Key policy developments and legislative changes ...... 17 2.3 DEPARTMENTAL REVENUE, EXPENDITURE AND OTHER SPECIFIC TOPICS ...... 17 2.3.1. Collection of departmental revenue ...... 17 2.3.2 Departmental expenditure ...... 17 2.3.3 Transfer payments (if applicable) ...... 17 2.3.4 Conditional grants and earmarked funds ...... 18 2.3.5 Capital investment, maintenance and asset management plan ...... 18 2.3.6 Capital investment ...... 18 2.3. 7 Maintenance ...... 18 2.3.8. Asset Management ...... 18 PART B: PERFORMANCE INFORMATION ...... 19 2.4 PROGRAMME PERFORMANCE ...... 19 2.4.1 PROGRAMME 1: ADMINISTRATION ...... 19 2.4. 1.1 Purpose: ...... 19 2.4.1.2 Strategic Objectives ...... 19 2.4.1.3 Progress Analysis ...... 20 2.4.1.4 Analysis of constraints and measures planned to address them ...... 20 SUB-PROGRAMME: EXECUTIVE MANAGEMENT SUPPORT SERVICES ...... 20 SUB-PROGRAMME: FINANCIAL MANAGEMENT ...... 21 SUB-PROGRAMME: CORPORATE SERVICES ...... 23 2.4.2 PROGRAMME 2: INSTITUTIONAL DEVELOPMENT ...... 24 4 Limpopo Office of the Premier Annual Report 2012/13 FY 2.4.2.1 Purpose: ...... 24 2.4.2.2 Strategic Objectives: ...... 24 2.4.2.3 Progress Analysis ...... 24 2.4.2.4 Analysis of constraints and measures planned to address them ...... 25 SUB-PROGRAMME: STRATEGIC HUMAN RESOURCE ...... 25 SUB-PROGRAMME: LABOUR RELATIONS ...... 27 SUB-PROGRAMME: SERVICE DELIVERY IMPROVEMENT ...... 27 SUB-PROGRAMME: INTEGRITY MANAGEMENT ...... 31 SUB-PROGRAMME: PGITO ...... 32 SUB-PROGRAMME: LEGAL SERVICES ...... 32 SUB-PROGRAMME:- COMMUNICATION ...... 33 2.4.3 PROGRAMME 3: POLICY AND GOVERNANCE ...... 34 2.4.3.1 Purpose: ...... 34 2.4.3.2 Strategic Objectives: ...... 34 2.4.3.3 Progress Analysis ...... 34 2.4.3.4 Analysis of constraints and measures planned to address them ...... 34 SUB-PROGRAMME: PLANNING ...... 35 SUB-PROGRAMME: MONITORING AND EVALUATION ...... 35 3. ANNUAL FINANCIAL STATEMENTS ...... 36 3.1 REPORT OF THE AUDIT COMMITTEE ON OFFICE OF THE PREMIER ...... 36 3.2 REPORT OF THE ACCOUNTING OFFICER ...... 40 3.3 REPORT OF THE AUDITOR- GENERAL TO THE LIMPOPO PROVINCIAL LEGISLATURE ON VOTE NO. 1: LIMPOPO OFFICE OF THE PREMIER ...... 48 5 Limpopo Office of the Premier Annual Report 2012/13 FY 3.4 REPORT ON THE FINANCIAL STATEMENTS ...... 53 3.5 STATEMENT OF ACCOUNTING POLICIES AND RELATED MATTERS ...... 68 For the year ended 31 March 2013 ...... 68 4 HUMAN RESOURCE MANAGEMENT ...... 105 4.1 Service delivery ...... 105 4.3 Employment and vacancies ...... 112 4.4 Job evaluation ...... 114 4.5 Employment changes ...... 116 4.6 Employment equity ...... 119 4.8 Performance rewards ...... 123 4.9 Foreign workers ...... 125 4.10 HIV and AIDS & health promotion programmes ...... 128 4.11 Labour relations ...... 130 4.12 Skills development ...... 133 4.131NJURY ON DUTY ...... 135 The following tables provide basic information on injury on duty...... 135 4.14 Utilisation of consultants ...... 135 5. OTHER INFORMATION ...... 137 5.1 Acronyms ...... 137 6 Limpopo Office of the Premier Annual Report 2012/13 FY PART A: GENERAL INFORMATION 1.1 VISION Good governance, integrated planning, sustainable growth and development. 1.2. MISSION Provide innovative and strategic leadership and management for service excellence. 1.3. VALUES Patriotism :We shall encapsulate our patriotism towards the country and adopting the spirit of unity in nation building. Integrity : We shall conduct our business with integrity at all times to inculcate a culture of honesty, accountability and commitment Service excellence :We shall strive to attain service excellence and maintain continuous improvement in service delivery, Innovation : We shall toil in pursuit of excellence and innovation in implementing programmes. 1.4 ORGANISATIONAL STRUCTURE The Office of the Premier has three budget Programmes and the Programmes are: Programme 1: Administration Programme 2: Institutional Development Programme 3: Policy and Governance 1.4.1 FUNCTIONAL PROGRAMMES The Office of the Premier has four functional programmes to enable it to operationalise its core mandate and the set strategic objectives. These programmes are outlined in the following diagram. 7 Limpopo Office of the Premier Annua l Report 2012/13 FY Premier Director General Senior General Senior General Senior General Senior General Manager- Manager Manager Manager- PM&E I nstitutiona I Administration Planning Development 1.5 LEGISLATIVE AND OTHER MANDATES 1.5.1 CONSTITUTIONAL MANDATES rrhe Office of the Premier is establi shed to provide support to the Premier and other Members of the Executive Council in executing their constitutional ~nctions. Furthermore, the Public Service Act, 1994 (as amended), provides for the establishment of the Office of the Premier: Limpopo. 8 Limpopo Office of the Premier Annual Rep ort 2012/13 FY The responsibilities of the Office of the Premier can thus be summarized as follows: • To oversee the administration of provincial legislation and national legislation within the functional areas listed in schedule 4 or 5 and national legislation outside those listed in scheduled 4 or 5 which have been assigned to the province in terms of Acts of the Provincial Legislature/Parliament. • To coordinate the preparation and initiation of provincial legislation. • To coordinate the functions of the provincial administration and its departments. • To manage performance of the provincial administration, monitor and evaluate service delivery and governance in the province • To develop and oversee the implementation of policy and planning in the province. • To strengthen intra and inter-governmental relations as well as international relations. Key functional areas are derived not only from legislative mandates but are also drawn from the electoral mandate of the ruling party as well as other policy prescripts such as the Medium Term Strategic Framework (MTSF). 1.5.2 LEGISLATIVE MANDATES The Office is guided by the following legislations: • The Constitution of RSA, Act 108 of 1996 Pertinent sections provide for the role and mandates of the Office of the Premier. • Public Services Act 1994 (Proclamation 103 of 1994) Provides for the administration of the Office of the Premier, as well as provides for the powers and functions of the Director General and the Premier. • Inter-Governmental Relations Framework Act 13 of 2005 The Premier is the chairperson of the Premier's Inter Governmental Forum (PIGF) and the Office of the Premier provides admin istrative and other support to the PIGF • Promotion of Access to Information Act 2 of 2000 Amplify th e constitutional provisions pertaining to the access of information under the control of the various bodies. The Director General is th e Information Officer for the province, 9 Limpopo Office of the Premier Annual Report 2012/13 FY In executing its core functions the Office must ensure compliance with the following: • Public Finance Management Act 1 of 1999 Provide for the administration of State Funds by functionaries, their responsibilities and the incidental matters. • Labour Relations Act 66 of 1995 Regulate the right of workers, employers and the trade unions. • Basic Conditions of Employment Act 75 of 1997 Provides for the minimum conditions of employment that employers must comply with in their workplace • Occupational Health and Safety Act 85 of 1993 Provide for the requirements that employers must comply with in order to create a safe working environment for employees in the workplace. • Control of Access to Public Premises and Vehicles Provide for the regulation of individuals entering government premises and incidental matters. • Electronic Communications and Transactions Act 25 of 2002 • State Information and Technology Act 88 of 1998 • National Archives and Records Service Act 43 of 1996 • Promotion of Administrative Justice Act 3 of 2000 Amplify the constitutional provisions pertaining to administrative law by codifying it. 10 Limpopo Office of the Premier Annual Report 2012/13 FY 1.6 ACCOUNTING OFFICER'S OVERVIEW This Annual Report for 2012/13 gives an assessment of the performance of the Office of the Premier during the year under review. The Office has outlined its objectives and targets, within its constitutional mandate, of coordinating government programmes, integrated planning, monitoring and evaluation of the performance of the provincial administration in the 2012/13 Annual Performance Plan. The Annual Performance Plan was duly tabled and discussed with the oversight committees. This report covers achievements made in attaining the objectives and targets as outlined in the Annual Performance Plan 2012/13. The Province has resolved 96% of service delivery cases reported to the Presidential hotline. The Province has improved from 64% of resolved reported service delivery cases in the previous financial year which was placing it in the third place to 96% as at end of the 2012/13 financial year which places the Province in the second place amongst the nine Provinces. This performance has been confirmed by the report from National Department of Performance Monitoring and Evaluation. One of the critical pillars of public service transformation that the Office of the Premier is monitoring is equity in the workplace. The National Cabinet has directed that all departments must reach the 50% target in relation to employment equity of female employees at SMS by not later than end of March 2014 and 2% employment of employees with disability by not later than March 2015. The province has reached 50% employment equity target in relation to appointment of Heads of Departments in that out of the 12 departments (votes) we are having in the Province six of the posts are occupied by females. The Province has four level 16 posts. Level 16 is the highest level in the Public Service and it is worth mentioning that three of these four level 16 posts are occupied by females. The Office has managed to establish the performance monitoring and evaluation units in all the departments. This intervention has enabled most departments to produce Annual Performance Plans that are having informed and measurable targets. The 2011/12 audit outcomes on predetermined objectives states that there has been remarkable improvement in the conclusions expressed by the AG in that four of our departments have improved while there is only one regression. The Office will continue to live up to its mission of providing innovative and strategic leadership and management for service excellence in order to sustain the achievements made. Thank you ~~~- ··· · ················ · ······ (Ms) M.R. Molepo -Modipa Director General 11 Limpopo Office of the Premier Annua l Report 2012/13 FY 2. INFORMATION ON PREDETERMINED OBJECTIVES FOR 2012/13 PROGRAMME STRATEGIC GOAL STRATEGIC OBJECTIVES ANNUAL TARGETS ADMINISTRATION Improved capacity of the Provide support on the implementation of lm lementation of 130 EXCO decisions Office of the Premier to Executive Council and HOD fora decisions Implementation of 30 HOD fora decisions provide strategic leadership. Provide Effective and Efficient Financial Management services Implementation of clean audit strategy Provide Risk Management services Top 10 prioritized risks mitigated in line with the risk mana ement lan All reported cases of fraud and corruption in the Office of the Premier addressed Provide Human Resource Management All funded vacant posts in the Office of the services Premier filled within 6 months of becoming vacant All 6 training programmes in the WSP of the Office of the Premier im lemented INSTITUTIONAL Improved institutional Provide advisory service and support in Filling of all funded vacant posts within 6 months DEVELOPMENT efficiency and effectiveness Human Resource Management in all from the date of becoming vacant in all SUPPORT of Provincial Administration. Departments de artments All 6 training programmes in the WSP im lemented in all De artments Provide advisory services and support in All departments resolve reported Labour Labour Relations in all Departments within Relations cases within prescribed time frames rescribed time frames Provide support on the implementation of Twenty four (24) local municipalities have Service delivery improvement programmes functional Thuson Service Centres in all Departments All departments resolve all reported service delivery complaints within the prescribed time frames Implementation of the 8 principle action plan promoting women's empowerment and gender e uit in all De artments Implementation of all4 pillars of job access strate in all Departments 12 Limpopo Office of the Prem ier Annual Repo rt 2012/13 FY PROGRAMME STRATEGIC GOAL STRATEGIC OBJECTIVES ANNUAL TARGETS Implementation of the 4 Youth development programmes in all Departments Provide support on the implementation of All reported fraud and Corruption cases integrity management programmes in all addressed in all Departments Departments Provide support on the implementation of Implementation of e-filling and e-leave system in information and communication technology 4 Departments programmes in all Departments All Departments implement Records Management Policy Provide Legal Service Support to the all No default judgement on claims and no Departments prescribed claims referred for legal advice Development of Provincial legislation 80° Contracts and 120 agreements drafted within 10 days after receiving full instructions. 200!j Legal opinions and research finalized within 7 working days after receipt of full instructions. Provide communication services and 95 Government priority programs communicated support to all Departments POLICY AND Promote Intergovernmenta l Provide advisory services and support on Implementation of Provincial Policy framework in GOVERNANCE and International Relations Strategy and Policy in all Departments all departments Implementation of 14 LEGDP pillars in all Departments Implementation of Integrated planning framework in all Departments Enhanced Integrated Provide advisory services and support on Implementation of M&E framework and plan in planning , monitoring and the implementation of the M&E framework all Departments evaluation capacity of the and plan in all Departments. Provincial Administration. 13 Limpopo Office of the Premier Annual Report 2012/ 13 FY 2.1 Overall Performance 2.1 .1 Voted Funds Main Adjusted Actual Amount Spent (Over)/Under Appropriation Appropriation R'OOO Expenditure R'OOO R'OOO R'OOO COMPENSATION OF EMPLOYEES 203,199 196,699 187,501 9,198 GOODS & SERVICES 117,615 93,658 79,009 14,649 TRANSFERS & SUBSIDIES 3,974 5,935 3,945 1,990 PAYMENTS FOR CAPITAL ASSETS 4,500 9,696 4,067 5,629 PAYMENT FOR FINANCIAL ASSETS 150 85 65 TOTAL 329,288 306,138 274,607 31,531 2.1.2 AIM OF THE VOTE The role of the Office of the Premier, as enshrined in Section 125 and 127 of the Constitution of the Republic of South Africa and the Public Service Act (1994) section 3A is to amongst others coordinate the functions of the provincial administration and its departments. In practical terms it means that the Office manages th e performance of the Provincial Administration, monitors and evaluates service delivery and governance in the province. 2.1.3 SUMMARY OF PROGRAMMES 2.1.3.1 PROGRAMME 1 PROGRAMMES 1 Main Appropriation Adjusted Appropriation Actual Amount Spent (Over)/ Under Expenditure R'OOO R'OOO R'OOO R'OOO COMPENSATION OF EMPLOYEES 73,227 73,164 68,865 4,299 GOODS & SERVICES 46,733 39,599 33,043 6,556 TRANSFERS & SUBSIDIES 300 882 793 89 PAYMENTS FOR CAPITAL ASSETS 1,500 5,126 1,128 3,998 PAYMENT FOR FINANCIAL ASSETS 150 85 65 TOTAL 121,760 118,921 103,914 15,007 14 Limpopo Office of the Premier Annual Report 2012/13 FY 2.1.3.2 PROGRAMME 2 PROGRAMMES 1 Main Appropriation Adjusted Appropriation Actual Amount Spent (Over)/ Under Expenditure R'OOO R'OOO R'OOO R'OOO COMPENSATION OF EMPLOYEES 76,860 73,227 69,835 3,392 GOODS & SERVICES 40,096 35,425 30,925 4,500 TRANSFERS & SUBSIDIES 3,674 5,003 3,105 1,898 PAYMENTS FOR CAPITAL ASSETS 3,000 4,570 2,939 1,631 PAYMENT FOR FINANCIAL ASSETS ft" - TOTAL 123,630 118,225 106,804 11 ,421 2.1.3.3 PROGRAMME 3 Main Appropriation Adjusted Appropriation Actual Amount Spent (Over)/ Under Expenditure PROGRAMMES1 R'OOO R'OOO R'OOO R'OOO COMPENSATION OF EMPLOYEES 53,112 50,308 48,801 1,507 GOODS & SERVICES 30,786 18,634 15,041 ' 3,593 TRANSFERS & SUBSIDIES 50 47 3 PAYMENTS FOR CAPITAL ASSETS - PAYMENT FOR FINANCIAL ASSETS - TOTAL 83,898 68,992 63,889 5,1 03 2.2 Key strategic objectives achievements • The Office complied with all National Treasury Framework for planning and Managing Programme Performance Information. The Annual Performance Plan, the Annual Report and all the quarterly reports were submitted to the relevant stakeholders timeously. • The Office has been compliant in paying its service providers within 30 days in almost all the months of the financial year under review. • The Office has achieved 50 % employment equity in the appointment of Heads of Departments and Accounting Officers. 15 Limpopo Office of the Premier Annual Report 2012/13 FY 2.2.1 Overview of the service delivery environment for 2012/13 The Office did not experience any key issue that had a significant impact on the delivery of services in the province and within provincial administration. The Office however recommitted itself to improving performance in attaining of its strategic goals as set out in the Annual Performance Plan. • Improved capacity of the Office of the Premier to provide strategic leadership • Improved institutional efficiency and effectiveness of Provincial Administration • Enhance monitoring and evaluation capacity of the provincial administration • Promote intergovernmental and international relations In the 2011/12 financial year we reported that five Departments in the Province were placed under administration. The five Departments are still under administration however it is worth noting that there has been substantial progress in the accumulated unauthorised expenditure of R 2, 7 billion dating back to 2001. This has since 2012/13 fy been drastically reduced. It is also worth mentioning that the province has managed to reduce the incidents and amount of unauthorised expenditure during the intervention period in that the unauthorised expenditure of R 175 million was reduced to R 12 million in the 2012/13 financial year. The capacity the Provincial Treasury is being strengthened and that will enable the Province to sustain the gains made during the intervention period. 2.2.2 Overview of the organizational environment for 2012/13 Over the period under review there have been no changes in the overview of the organisational environment of the Office. The Office of the Premier has four branches aimed at enabling it to achieve its strategic goals. These branches are still headed by Senior General Managers. • Administration, • Planning, • Monitoring and Evaluation • Institutional Development 16 Limpopo Office of the Premier Annual Report 2012/13 FY 2.2.3 Key policy developments and legislative changes. In the 2012/13 financial year the office has consolidated all compliance issues in relation to finance and HR and packaged them in one document stating among others actions that will be taken where there is non - compliance. The compliance document has been shared with the HOD's and has been adopted by the HOD's forum. The document is being used by all Departments for internal control measures. 2.3 DEPARTMENTAL REVENUE, EXPENDITURE AND OTHER SPECIFIC TOPICS 2.3.1. Collection of departmental revenue 2009/10 2010/11 2011/12 2011112 2012/13 2012/13 % deviation from Actual Actual Target Actual Target Actual target Tax revenue L (Specify) J » 1 ...... -...... __, c Non-tax revenue Sale of goods & services other than capital 194 418 373 278 250 295 -18% Assets Interest, Dividends and Rent on Land 36 270 14 28 10 23 -130% I· Sales of capital assets 1,667 1,712 980 1,068 -9% .-.. ~ .. / Trnsf Rec: Hshld&non-Prfit inst 2,912 - .• Financial transactions (Recovery of loans 3,556 1,552 460 673 200 436 -118% and advances) TOTAL DEPARTMENTAL RECEIPTS 6,698 2,240 2,514 2,691 1,440 1,822 -27% 2.3.2 Departmental expenditure The Office spent R27 4,607 million against the Budget of R306, 138 million. 2.3.3 Transfer payments (if applicable) • Donation R0,271 • Leave gratuity R0,914 17 Limpopo Office of the Premier Annual Report 2012/13 FY • Claim against state R0,060 • Bursary non employees R2,132 • TV license R0,010 • Municipal rates and taxes R0,558 • Total R3,945 2.3.4 Conditional grants and earmarked funds The Office of the Premier did not have any conditional grant during the year under review. 2.3.5 Capital investment, maintenance and asset management plan 2.3.6 Capital investment None 2.3. 7 Maintenance 2.3.8. Asset Management The holding of major fixed assets for the Office had changed during the year under review. The Office started with prior balance of R44, 144 million, acquired new assets to the value of R4 ,067 million, disposed assets to the value of R1 2,290 million ,transfer in to the amount of RO , 337 million and made adjustments to the value of RO, 228 million resulting in a major capital asset register closing balance of R36, 486 million. The balance is made up of R35,407 million movable and R1 ,079 million of intangible assets. The Office received movable assets from Limpopo Department of Public Works (Guest house) to the value of R0 .337 million. 18 Limpopo Office of the Premier Annual Report 2012/13 FY PART 8: PERFORMANCE INFORMATION 2.4 PROGRAMME PERFORMANCE The activities of the Office of the Premier are organized in the following programmes: Programme 1: Administration Programme 2: Institutional Development Programme 3: Policy and Governance 2.4.1 PROGRAMME 1: ADMINISTRATION 2.4.1.1 Purpose: Programme one is entrusted with the responsibility of providing administrative support to the Premier, Executive Council, and the Director General in fulfilling their legislative oversight function and in promoting good corporate governance . Programme one has the following sub-programmes : - • Executive Management Support Services • Premier Support • Financial Management • Corporate Services. 2.4.1.2 Strategic Objectives The following are the strategic objectives of the Programme: 1. Provide support on the implementation of Executive Council and HOD fora decisions 2. Provide Effective and Efficient Financial Management services 3. Provide Risk Management Services 4. Provide Human Resource Management Services 19 Limpopo Office of the Premier Annual Report 2012/13 FY 2.4.1.3 Progress Analysis Programme one has maintained the responsibility of providing administrative support and strived to sustain an enabling environment for the Premier, Executive Council, and the Director General to fulfil their legislative oversight function and promote good corporate governance. The following reflects the key achievements of the branch for the year under review. The Executive Management support has supported the Premier and the Director General in relation to the Executive Council programmes. All Executive Council meetings were held as planned and almost all the decisions taken were implemented. The Administration branch has enabled the Director General to provide innovative and strategic leadership in that, among others, for the first time Internal controls, for both Finance and HR, were packaged in one document with clear indication of consequences for Non- compliance and the document is adopted and is now being implemented in all departments. The financial management support has enabled the Accounting Officer to comply with financial prescripts in the PFMA in relation to payment of suppliers within 30 days in almost all the months. Corporate Services has improved its turnaround time for filling of vacant HoD posts in that all vacant HoD posts were filled within 3 months against the standard of 6 months. 2.4.1.4 Analysis of constraints and measures planned to address them The programme did not have any constraint that could hinder service delivery of Vote One. SUB-PROGRAMME: EXECUTIVE MANAGEMENT SUPPORT SERVICES STRATEGIC OUTPUTS ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR MAJOR OBJECTIVES PERFORMANCE TARGET ~CTUAL VARIANCES: t [il(!) MEASURES l liJ~IIl :m. h\iUJr::.i\'l:tl'JI.J~~ Provide support on the Number of EXCO Implementation All EXCO decisions taken in the year under review were The Municipalities have a implementation of decisions of 130 1 EXCO implemented except one decision in relation to filling of CFO challenge of attracting Executive Council and implemented decisions posts within ninety days in Municipalities. candidates with requisite skills. HOD fora decisions Three decisions that were taken at the end of the fourth quarter will be implemented in the 2013/14 financial year. COGHSTA is assisting 1 An estimate based on previous year's performance 20 Limpopo Office of the Premier Annual Report 2012/13 FY STRATEGIC OUTPUTS ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR MAJOR OBJECTIVES PERFORMANCE TARGET ACTUAL VARIANCES: [tl'J:I:l (Wl MEASURES m!:lli 1 rilE~ h~ - municipalities in this regard. Number of HOD fora Implementation All the decisions and the directives given in the year under None 2 decisions of 30 HOD fora review were implemented. implemented decisions ~ ~ ' .~ .I SUB-PROGRAMME: FINANCIAL MANAGEMENT STRATEGIC OUTPUTS ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR MAJOR ~~~~----~~~~------~ OBJECTIVES PERFORMANCE TARGET ACTUAL VARIANCES: l!l!WJit • MEASURES ilWm'!fl ~ Jh\\I'P ~ Provide Effective and % of budget spent 98%-100% of the The Office spent R27 4,607 million against the Budget of The under expenditure Efficient Financial budget spent R306, 138 million which constitute 90% of expenditure against occurred due to austerity Management Services budget for the year. measures on personnel and due to SIT A projects that were not implemented as !planned. Number of objectives Implementation All the five clean audit objectives in the clean audit strategy. None of the clean audit of clean audit were implemented strategy implemented strategy • Quality supporting documents for financial statements and management information were improved including action plan on audit findings. • Government structures by establishing clean audit committee and by making clean audit monitoring report to be a standing item in the HoD forum and at EXCO. • Capacity building initiatives were strengthened amongst others by o Visits of OtP and the Provincial Treasury to all departments to guide them on how to deal with challenges of paying service providers within 30 days. 2 An estimate based on previous year's performance 21 Limpopo Office of the Premier Annual Report 2012/13 FY STRATEGIC OUTPUTS ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR MAJOR OBJECTIVES PERFORMANCE TARGET ACTUAL VARIANCES: @;;:, MEASURES · ~ 'JJ~ .;.. ~·'lt:l~fUS 0 Having Officials trained on contract management, demand management, supply chain management and how to compile financial statements. • Capacity to implement operation clean audit was strengthened by Executive support from the Premier and the MECs • Knowledge sharing among critical stakeholders was done through the HoD's forum wherein the internal control document which has packaged all the finance and human resource issues and outlining consequences for non- compliance was shared and was adopted by the HoD's for implementation in all the departments. SUB-PROGRAMME: RISK MANAGEMENT REASONS FOR MAJOR OUTPUTS ACTUAl. PERFORMANCE AGAINST TARGET STRATEGIC VARIANCES: . PERFORMANCE OBJECTIVES JJ ~ MEASURES TARGET ACTUAL Provide Risk Number of top 10 Top 10 All Top ten strategic Risks were mitigated and addressed in None Management Services prioritized risks Prioritized risks line with the Risk Management Plan. mitigated in line with mitigated in line the Risk with risk Management Plan management plan Number of reported All reported All fraud and corruption cases reported, were investigated None cases of fraud and cases of fraud and finalised corruption addressed and corruption in the Office of the Premier addressed 22 Lim popo Office of the Premi er Annual Repo rt 2012/13 FY SUB-PROGRAMME: CORPORATE SERVICES ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR OUTPUTS ~------~------~MAJOR STRATEGIC PERFORMANCE ARIANCES : ~•-=:~All OBJECTIVES MEASURES TARGET CTUAL Provide Human Number of funded All funded posts All the vacant posts that were approved by the Provincial Task Resources vacant posts filled in the Office of T earn appointed to manage the filling of posts in all the departments Management within 6 month of the Premier filled in order to reduce personnel expenditure, were advertised and becoming vacant within 6 months filled within six months from the date of approval of the Provincial of becoming Task Team. vacant Number of training All 6 training The following six training programmes in the WSP of the Office o programmes in the programmes in the Premier were implemented . work place skills plan the WSP of the • Skills programmes implemented office of the • Adult Education Training • Bursaries premier • Experiential learning implemented • Internship programmes • Learnershi 23 Limpopo Office of the Premier Annual Report 2012/13 FY 2.4.2 PROGRAMME 2: INSTITUTIONAL DEVELOPMENT 2.4.2.1 Purpose: Programme two has been established to ensure that the Provincial Administration has the capacity to deliver on its mandate. This programme ensures that policies, processes and systems that enable the Provincial Administration to deliver services are in place. The Programme has the following sub-programmes • Strategic Human Resource • Service Delivery Improvement • Labour Relations • Information and Communication Technology • Legal Services • Communication 2.4.2.2 Strategic Objectives: The following are the strategic objectives for the Programme: 1. Provide advisory services and support in Human Resource Management in all Departments, 2. Provide advisory services and support in Labour relations in all Departments within prescribed time frames, 3. Provide support on the implementation of Service Delivery improvement programmes in all departments, 4. Provide support on the implementation of integrity Management programmes in all departments, 5. Provide support on the implementation of Information and Communication Technology (ICT) programmes in all Departments, 6. Provide Legal services support to all the departments, 7. Provide communication services and support to all Departments. 2.4.2.3 Progress Analysis Programme two continued to ensure that the provincial administration has capacity to deliver on its programmes. These are some of the achievements made in the year under review. • The Programme resolved 96% of service delivery cases reported to the Presidential hotline with provincial departments at 95% placing the province it in the third place out of 9 provinces. 24 Limpopo Office of the Premier Annual Report 2012/13 FY • The programme has enabled the Director General to successfully implement the PSCBC Resolution 1 of 2012 in the province. • The implementation of the anti-fraud and corruption programme in the public service has resulted in the dismissal of the affected public servants in the province. • The Legal Services unit enabled the province to have 23 Legislations developed in the year under review. 2.4.2.4 Analysis of constraints and measures planned to address them In implementing its mandates the branch encountered the following challenges:- • Meeting the stipulated turnaround time for resolution of labour relations cases, • Filling of all funded vacant posts in all Departments. • Implementation of the Provincial Government Information Office targets. SUB-PROGRAMME: STRATEGIC HUMAN RESOURCE STRATEGIC OUTPUTS ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR OBJECTIVES PERFORMANCE MAJOR MEASURES /SERVICE VARIANCES: . Target Actual DELIVERY INDICATORS ·:rr-··~ Provide advisory Number of vacant posts All Funded vacant posts All funded vacant posts that were approved by the Provincial None. service and support filled within six months filled within six months of Task Team, appointed to manage the filling of posts in order in Human Resource of becoming vacant in becoming vacant in all to reduce the personnel expenditure (austerity measures) Management in all all Departments Departments. were advertised and filled within six months from the date of Departments approval of the Provincial Task Team. Posts that were advertised in the fourth quarter of the financial year will be filled in the first quarter of the next financial year. Number of training All 6 training programmes All six training programmes in the WSP of departments None programmes in the in WSP implemented by were implemented. Workplace Skills Plans all Departments. • Skills programmes-through workshops implemented by all • Adult Education Training- level one to four Departments. implemented • Bursaries-Bursaries were awarded to both employees and learners 25 Limpopo Office of the Premier Annual Report 2012/13 FY STRATEGIC OUTPUTS ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR • Experiential learning learners given opportunities to do practical work !. • Internship programmes- learners given opportunities to do practical work • Learnership programmes learners given opportunities to further their careers ~· ' 26 Limpopo Office of the Premier An nual Report 2012/13 SUB-PROGRAMME: LABOUR RELATIONS r~~~~ ~rN STRATEGIC OUTPUTS ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR OBJECTIVES PERFORMANCE MAJOR MEASURES /SERVICE VARIANCES: ltl'.4:m Target Actual DELIVERY @rn,LIJ~IIl:m INDICATORS ~lliiiGW.,=-1'11=-~~ Provide advisory Number of departments All departments resolve Misconduct cases: L' Lack of capacity in services and support in that resolve reported reported Labour 3 Departments finalised reported misconduct cases within addressing Labour Labour Relations in all labour relation cases Relations cases within the prescribed time frames. Relation Cases within Departments within within prescribed time prescribed time frames -~ line management in - ·- '\: prescri bed time frames. frames. Grievances: Departments 1 Department finalised reported grievance cases within the !prescribed time frames. The Office to facilitate Disputes: the training of line management officials 5 Departments finalised reported disputes cases within the in Departments. prescribed time frames. ~ -~--... SUB-PROGRAMME: SERVICE DELIVERY IMPROVEMENT OUTPUTS STRATEGIC ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR OBJECTIVES PERFORMANCE MAJOR MEASURES /SERVICE VARIANCES: DELIVERY Target Actual ltl'J:3:~C!I3l¥IN~ INDICATORS /!\lliill=l.'J=-I'J~ Provide support on Number of local Twenty four (24) local Twenty Three (23) local Municipalities have 28 Thusong One Municipality the implementation municipalities with municipalities have Service Centres; 18 of the centres have six service process of of Service delivery Thusong service Centres functional Thusong providers each and 10 centres have less than 6 service establishing a improvement Service Centres providers. Thusong Service program mes in all Centre is stalled by Departments. land dispute between municipality and traditional authority. The office of the Premier together with CoGHSTA is 27 Limpopo Office of the Premier Annual Report 2012/13 STRATEGIC OUTPUTS ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR OBJECTIVES PERFORMANCE ~------~------4 MAJOR MEASURES /SERVICE VARIANCES: DELIVERY Target Actual INDICATORS assisting the Municipality to resolve the problem Number of Departments All Departments Presidential Hotline: Departments are still resolving reported resolve all reported All departments resolve reported service delivery cases struggling to resolve service delivery service delivery .and the total percent of cases resolved in the Province the cases within the complaints within the complaints within including departments, Municipalities and National prescribed time prescribed time frame prescribed time departments in the Province is 96% frame frames Although 4% of the cases in the Province were not OtP working with the finalised the Province has still performed well making it affected institutions the second best in the country. to address the challenge Premier Hotline Departments are still All departments resolve reported service delivery cases struggling to resolve and the total percent of cases resolved in the Province the cases within the including departments, Municipalities and National prescribed time departments in the Province is 94% frame I~ OtP working with the affected departments to address the challenge Number of Departments Implementation of the All Departments implemented 8 principle action plan for None implementing the 8 8 principle action plan promoting women's empowerment and gender equality. principle action plan promoting women's as follows; promoting women's empowerment and 1. Transformation for non-sexism empowerment and gender equity in all The following programmes were implemented by gender equality. Departments. departments to promote human dignity and human rights. • Mini assertiveness summit and awards workshop. • Implementation of the Public Service Week 28 Limpopo Office of the Premier Annual Report 2012/13 STRATEGIC OUTPUTS ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR OBJECTIVES PERFORMANCE ~------~------~ MAJOR MEASURES /SERVICE VARIANCES: DELIVERY Target Actual INDICATORS • Induction and orientation programmes that included transformation agenda. • 16 days of activism programmes to change gender. 2.Establish policy environment The following programmes were implemented to establish policy environment. • Sexual harassment policies were implemented • Employee Health and Wellness policy • Employment equity policies 3.Meeting equity targets The Provincial employment equity target in relation to females is 40% with five departments having attained 45% to 49%. 4.Creating an enabling environment • Gender units are in place • All departments have gender focal points 5.Gender mainstreaming • Most women benefited from the Extended Public Works Programme in that most people employed are women. • Women farmers were trained on how to manage livestock and poultry. G. Empowerment Empowerment programmes for women were implemented. as follows: • Training on tax returns • Records management training • Victim em owerment trainin 29 Limpopo Office of the Premier Annual Report 2012/13 STRATEGIC OUTPUTS ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR OBJECTIVES PERFORMANCE r------~------~ MAJOR MEASURES /SERVICE VARIANCES: DELIVERY Target Actual INDICATORS 7.Providing adequate resources • All departments have budget for women programmes. 8. Accountability, monitoring and evaluation Reporting template has been developed for all de artments. Number of Departments Implementation of all All Departments have implemented four pillars of the job None implementing all four pillars of job access access strategy as follows; pillars of job access strategy in all strategy Departments 1.Meeting equity targets The Provincial employment equity target in relation to people living with disabilities has been maintained at 2%. 2. Disability mainstreaming All departments have employment equity managers, consultative forums and plans to mainstream disability. 3. Creating an enabling environment. One department appointed an intern with disability and two departments awarded bursaries to employees with disabilities. The PAIA manual has been converted to braille. 4.Barrier free access All government offices are accessible to people with disabilities. Number of Departments All departments implemented the four youth development Implementation of the None implementing the 4 youth 4 Youth development programmes as follows; development programmes in the all programmes. Departments 1. Economic participation. • Youth benefited from the implementation of the micro finance ro ramme. 30 Limpopo Office of the Premier Annua l Report 2012/13 STRATEGIC OUTPUTS ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR OBJECTIVES PERFORMANCE r------.------~MAJOR MEASURES /SERVICE VARIANCES: DELIVERY Target Actual INDICATORS • Youth benefited from the employment programmes in the public service. • Youth benefited from the EPWP programm es 2.Education and skills development programmes • Youth participated in the intern ship and learnership programmes. • Youth were given bursaries 3.Youth Health Programmes • Teenage pregnancy and substance abuse programmes were implemented 4.Social Cohesion Nelson Mandela da activities were coordinated SUB-PROGRAMME: INTEGRITY MANAGEMENT '(\: '\ ··"' .~, :~ OUTPUTS ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR STRATEGIC PERFORMANCE MAJOR OBJECTIVES MEASURES /SERVICE VARIANCES: [i1'fT:ffi DELIVERY INDICATORS Target Actual l ~lllt:'IIJ:::I::t "!.Yil!! IIN.L=tlil1Rl:;l Provide support on Number of fraud and All Fraud and Corruption The Public Service Commission has referred fou r hundred The investigating the implementation corruption cases cases addresses in all and six cases from th e hotline. The Provi nce received fifty officers do not have of integrity addresses in all Departments five percent feedback from th e Public Service Commission requisite capacity to management departments and forty percent of the cases have been closed. investigate cases programmes in all Departments The Province is at the fourth place in comparison with all The OtP will conduct other Provinces skills audit and built capacity 31 Limpopo Office of the Premier Annual Report 2012/13 SUB-PROGRAMME: PGITO STRATEGIC OUTPUTS ~CTUAL PERFORMANCE AGAINST TARGET REASONS FOR OBJECTIVES PERFORMANCE MAJOR MEASURES /SERVICE ~ARIANCES: ~ Target Actual DELIVERY INDICATORS ll=ll ·~ Provide support on Number of Departments E-filling and e-leave The first phase of implementing the E - filling system has None the implementation implementing the E-filling systems in 4 been completed. The second phase is in progress. of the information and e-leave systems Departments and communication The e-leave system project implementation was put on hold technology, due to moratoriu m on financial information systems. programmes in all Number of departments Implementation of All Departments implemented the Records Management None Departments implementing records Records Management policies . management policies Policy SUB-PROGRAMME: LEGAL SERVICES OUTPUTS ~CTUAL PERFORMANCE AGAINST TARGET REASONS FOR STRATEGIC PERFORMANCE MAJOR OBJECTIVES MEASURES /SERVICE VARIANCES: . Target Actual DELIVERY INDICATORS f ·~ Provide Legal Number of default No default judgement on There were 3 default judgements in the Department of Failure by the Service Support to 'udgement on claims and claims and no prescribed Health (District Offices) wh ich failed to attend to summons Department of all Departments number of prescribed claims referred for legal received in the first quarter. Two summons were Health(District claims referred for legal advice rescinded and the third summon was settled through Offices) to attend to services implementation of the judgement summons timeously There was 1 prescribed case. Failure by the State Attorney to institute action timeously Number of Provincial Development of Developed 23 pieces of legislation None Legislations developed Provincial legislations 32 Limpopo Office of the Premier Annual Report 2012/13 OUTPUTS ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR Number of Contracts and 803 Contracts and 1204 Drafted 99 contracts within 10 working days after receiving There were 99 other legal documents agreements drafted full instructions Contracts submitted drafted within 10 working within 10 working days in the financial year days after receiving full after receiving full under review. instructions instructions Number of Legal opinions 200 5 Legal opinions and Drafted 123 legal opinion within 7 working days of receiving 123 legal opinions and research finalised research are finalized full instructions were requested in the within 7 working days after within working days after financial year under receipt of full instructions receipt of full instructions ...... ~ ·-, - review . ' SUB-PROGRAMME:- COMMUNICATION STRATEGIC OUTPUTS ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR OBJECTIVES PERFORMANCE MAJOR MEASURES /SERVICE VARIANCES: ~ Target Actual DELIVERY INDICATORS OOJ3.'fT:a,,, 1,;1 ~ nn:!) Provide Number of government 5 Government priority The following five Government priority programmes were None communication priority programmes programmes communicated: I' services and support communicated communicated to all Departments • Education, • Health, I'• . Rural Development . Fight against Crime and Corruption and . Creation of decent work and sustainable livelihood 3 Estimate based on previous year's performance 4 Estimate based on previous year's performance 55 Estimate based on previous year's performance 33 Limpopo Office of the Premier Annual Report 2012/13 2.4.3 PROGRAMME 3: POLICY AND GOVERNANCE 2.4.3.1 Purpose: Programme three has been established to enable the Office of the Premier to implement the mandate of Policy, Planning as well as Monitoring and Evaluation. The programme initiates the development and implementation of policies and strategies to achieve an integrated approach towards sustainable provincial growth and development. The Programme also ensures that the outcome based approach is properly implemented in all the spheres of government. Programme three has the following Sub-Programmes: - • Policy and Research • Integrated Planning • LEGDP Management • Monitoring and Evaluation 2.4.3.2 Strategic Objectives: The following are the strategic objectives for Programme: • Provide advisory services and Support on Strategy and policy in all Departments, • Provide advisory service and support on the implementation of M&E framework and Plan in all Departments. 2.4.3.3 Progress Analysis The programme has successfully implemented the four phases of the integrated planning framework and the framework has enabled all departments to align their plans to the municipal integrated plans. The Policy and Research programme has enabled the Office to successfully develop a policy Repository. 2.4.3.4 Analysis of constraints and measures planned to address them In implementing its mandates the branch encountered, amongst others, the following challenge: • Varying capacity in departments to implement M&E programmes, 34 Limpopo Office of the Premier Annual Report 2012/13 SUB-PROGRAMME: PLANNING STRATEGIC OUTPUTS PERFORMANCE ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR MAJOR OBJECTIVES MEASURES /SERVICE r------.------~V~ ARIAN~C~ES~:~·~~~~ DELIVERY INDICATORS Target Actual Provide advisory services Number of Departments Implementation of Provincial All Departments implemented the and support on Strategy implementing the Provincial Policy framework in all Provincial Policy Framework. and Policy in all Polic framework de artments Departments Number of Departments Implementation of 14 All Departments implemented the 14 None implementing the 14 LEGDP LEGDP pillars in all LEGDP Pillars. illars de artments Number of Departments Implementation of integrated All Departments implemented the implementing the integrated planning framework in all Integrated Planning Framework. lannin framework De artments SUB-PROGRAMME: MONITORING AND EVALUATION STRATEGIC OUTPUTS PERFORMANCE ACTUAL PERFORMANCE AGAINST TARGET OBJECTIVES MEASURES /SERVICE Target ctual DELIVERY INDICATORS Provide advisory services Number of departments Implementation of M&E All departments implemented the None and support on the implementing M&E framework framework and plan in all following five pillars of the M&E implementation of M&E and plan Departments Framework ramework and in all Institutional arrangements, Departments • Systems and procedures Capacity, M&E Plan and Monitoring (front line services) 35 Limpopo Office of the Premier Annual Report 2012/13 3. ANNUAL FINANCIAL STATEMENTS 3.1 REPORT OF THE AUDIT COMMITTEE ON OFFICE OF THE PREMIER We are pleased to present our report for the financial year ended 31 March 2013. Audit Committee Member and Attendance Limpopo has an Audit Committee structure which is two tiered consisting of the 3 Cluster Audit Committees, dealing with specific departments, and a shared Central Audit Committee. The Audit Committees consist of the members listed hereunder and meet at least 4 ti mes per annum as per the approved terms of reference. During the current year 4 Cluster Audit Committee and 4 Central Audit Committee meetings were held. Cluster 1 Audit Committee Name of Member Number of meetings attended Ms. L.J. Fosu (Chairperson) 4 Ms. T. Njozela 4 Mr. L. Vilakazi 4 Mr. A.F. Sinthumule 3 Central Audit Committee Name of Member Number of meetings attended Ms. Z.P Mzizi (Chairperson) 0 Mr. C.M. Mannya 4 36 Limpopo Office of the Premier Annual Report 2012/13 Name of Member Number of meetings attended Ms. Z.P Mzizi (Chairperson) 0 Ms. L.J. Fosu 4 Mr. T.C. Modipane 4 Audit Committee Responsibility The Audit Committee reports that it has complied with its responsibilities arising from Section 38 (1) (a) (ii) of the Public Finance Management Act and Treasury Regulation 3.1 .13. The Audit Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein, except that we have not reviewed changes in accounting policies and practices. The Effectiveness of Internal Control • Efficiency and effectiveness of the system of internal control applied by the Department In line with the PFMA and the King Ill Report on Corporate Governance requirements, Internal Audit provides the Audit Committee and management with assurance that the internal controls are appropriate and effective This is achieved by means of the risk management process, as well as the identification of corrective actions and suggested enhancements to the controls and processes From the various reports of the Internal Auditors, the Audit Report on the Annual Financial Statements both any qualification and/or the emphasis of matter, and the management report of the Auditor-General, it was noted that the system of internal control was not entirely effective for the year under review. During the year under review, several deficiencies in the system of internal control and/or deviations were reported by the internal auditors and the Auditor-General South Africa. In certain instances, the matters reported previously have not been fully and satisfactorily addressed. Our review of the findings of the Internal Audit work, which was based on the risk assessments conducted in the department revealed certain weaknesses, which were then raised with the Department. The following internal audit work was completed during the year under review: 37 Limpopo Office of the Premier Annual Report 2012/13 • In-Year Monitoring • Interim Financial Reporting Pre-determined Objectives • Debt Management • Subsistence and Travelling Allowance • Leave Management • Supply Chain Management • PERSAL CAATs • eNatis and Asset Management • Addressing the AG IT findings • Fleet Management - claims • Transversal Human Resources Policies • Performance Management System The following were areas of concern: • The contract of the Audit Committee (AC) expired on the 31 st of December 2012 and the new AC was appointed for a period from the 1st of May 2013 to 31 st of August 2013. • The previous AC considered only the 1st and 2nd quarterly reports whereas the timing for the new AC allowed for the consideration of the 4th quarter reports, as a result of the delay in appointing the Audit Committee, the 3rd quarter reports were not considered by the Audit Committee. • The department's implementation of PIA's findings is not satisfactory. • Risk Management The system of internal control applied by the department over financial risk and risk management is effective, efficient and transparent. • Annual Financial Statements We have reviewed the department's implementation plan for audit issues raised in the prior year and we are satisfied that the matters have been adequately resolved except for the following: o Not all AG findings were resolved by the Department. • The quality of in year management and monthly/quarterly reports submitted in terms of the PFMA and the Division of Revenue Act. The Audit Committee is satisfied with the content and quality of monthly and quarterly reports prepared and issued by the Accounting Officer of the Department during the year under review. 38 Limpopo Office of the Premier Annual Report 2012/13 Evaluation of Financial Statements The Audit Committee has: • reviewed and discussed the audited annual financial statements to be included in the annual report with the Auditor-General and the Accounting Officer; • reviewed the Auditor-General's management report and management's response thereto; • reviewed changes in accounting policies and practices; • reviewed the departments compliance with legal and regulatory provisions; • reviewed the information on predetermined objectives to be included in the annual report; • reviewed significant adjustments resulting from the audit; and • quality and timelines of the financial information availed information to the Audit Committee for oversight purposes during the year such as interim financial statements. The Audit Committee concurs and accepts the conclusions of the Auditor-General on the annual financial statements and is of the opinion that the audited annual financial statements be accepted and read together with the report of the Auditor-General. Internal audit The Audit Committee is satisfied that the internal audit function is operating effectively given the current capacity constraints, and that further improvements need be made to address the risks pertinent to the Department. Auditor General South Africa We have reviewed the department's implementation plan for audit issues raised in the prior year and we are satisfied that the matters have been resolved. The Audit Committee has met with the Auditor-General South Africa to ensure that there are no unresolved issues. Mr AF Sinthumule Chairperson of the Audit Committee Office of the Premier Date: 29 July 2013 39 Limpopo Office of the Premier Annual Report 2012/13 3.2 REPORT OF THE ACCOUNTING OFFICER 1. General review of the state of financial affairs The Office of the Premier is entrusted by the constitution with the responsibility of ensuring that the decisions of the provincial administration are implemented. The office is committed to effective administration by developing and monitoring the implementation of legislation and policies which contribute to the improvement of service delivery. The Office of the Premier could not spend an amount of R31, 531 million as at the end of the Financial Year mainly due to the implementation of the Provincial instruction on austerity measures. 1.1 Important policy decisions and strategic issues facing the department The Office of the Premier has restructured and focus will be on the functions as mandated by the constitution, namely planning co-ordination, provincial monitoring and evaluation and the institutional support to provincial departments as provided for in the mandating legislation. 1.2 Spending trend The original budget allocation appropriated to the Office of the Premier was R329, 288 million which was finally decreased to an amount of R306, 138 million. The budget decrease was mainly due to a saving made from the austerity measures put in place and implemented towards offsetting the unauthorised expenditure. An amount of R27 4, 607 million was spent against the final budget of R306 138 million which equates to 90%.The under spending is due to the implementation of the provincial instruction on austerity measures. • Compensation of Employees An amount of R187,501 million (95%) was spent against the final budget of R196,699 million on compensation of employees in 2012/13 financial year as compared to the amount of R173,189 million (99%) spent against the budget of R174,711 million in 2011/12 financial year. There was a delay in filling the vacant funded posts as the department was implementing the Provincial instruction on austerity measures • Goods and Services An amount of R79,009 million (84%) was spent against the final budget of R93,658 million on goods & services in 2012/13 financial year as compared to the amount of R94,329 million spent (88%) against the budget of R107,376 million in 2011/12 financial year.AIIICT projects were submitted to SIT A 40 Limpopo Office of the Premier Annual Report 2012/13 for implementation. Delays in procurement processes by SITA resulted in the under-expenditure as the projects were not implemented.( DRP, ICT Governance, and Thusong Centres) Transfer Payments An amount of R3,945 million(66%) was spent against the final budget of R5,935 million on transfer payments in 2012/13 financial year as compared to the amount of R7,704 million (93%) spent against the budget of R8,290 million in 2011/12 financial year. The budget amount for state claims of R0,6m was not claimed during the financial year. The Office envisaged to award bursaries to 175 students to the value of R3, 8m . However, 64 students who applied did not meet the requirements hence an under-spending of 34%. • Capital Payments An amount of R4,067 million(42%) was spent against the final budget of R9 ,696 million on Payments for Capital Assets in 2012/13 financial year as compared to the amount R5,342 million (44%) spent against the budget of R12 ,011 million. The under spending was caused by delays in the procurement process of a generator by Department of Public Works as some of the components had to be imported. 2. Service rendered by the Department 2.1 List of services rendered The Office derives its core mandate from the Constitution of South Africa, Chapter 6, which is to provide support to the Premier and other Members of the Executive Council to: o Implement provincial legislation o Implement mandated national legislation o Develop and implement provincial policy o Coordinate functions of Limpopo Provincial Administration and Departments o Prepare and initiate provincial legislation 41 Limpopo Office of the Premier Annual Report 2012/13 As a public organisation the Office has to manage people, assets, finances, information in line with the relevant legislations and policies. The aim of the Office of the Premier is to ensure good governance, integrated planning and sustainable development within the Provincial administration through the co-ordination of departments to assist them with the implementation of their strategic plans and ensuring that there is transformation of the public service and improved service delivery. The Office of the Premier is divided into 3 Budget programmes, (main divisions), namely o Administration o Institutional Development o Policy & Governance. 2.2. Tariff policy The Office of the Premier does not regularly sell goods & services and therefore applies the provincial tariffs as guided by the Provincial Treasury from time to time. 2. 3 Free Services The Office of the Premier does not render any free services that if charged would yield significant revenue. 2.4 Inventories The Office of the Premier had consumable stores inventory with an opening balance of R5,926 million and a closing balance of R4,216 million as at 31 March 2013. This inventory was valued using the weighted average cost method. 3. Capacity constraints The Office had to deliberately put austerity measures in place by delaying the filling of the funded vacant posts in order to make a saving towards offsetting the unauthorised expenditure. 4. Utilisation of donor funds The Office did not have any Donor-Funding during the Financial Year. 42 Limpopo Office of the Premier Annual Repo rt 2012/13 5. Trading entities and public entities The Office of the Premier did not have any Trading or Public Entities during the financial year. 6. Organisations to whom transfer payments have been made The following transfers were made during the year: Transfers to Households Social Benefits 914 Bursaries Non-employees 2132 Claims against the state 60 Total 3,106 7. Public private partnerships (PPP) The Office has not entered into any Public Private Partnerships during the financial year. 8. Corporate governance arrangements Good Corporate Governance is an integral part of the Office of the Premier's operations. Accordingly the Office is fully committed to the principles of the Code of Corporate Practices. In supporting the code, the Office recognises the need to conduct its business with integrity. Business and governance structures are in place to ensure a coherent and consistent governance approach. During the year under review the following were key Corporate Governance processes: o The Office of the Premier developed a risk management plan which was aligned to the 2012/13 Annual Performance Plan. A Risk Management Committee was appointed to monitor the implementation of the mitigation plan for the identified risks. o A Fraud Prevention Plan was reviewed by the Provincial Integrity Management Forum o A Departmental Bid Committee was appointed on a twelve months period to ensure that procurement processes are fair, competitive, equitable, transparent and cost effective. o All Senior Managers made full disclosures to the Executive Authority o Financial processes were reviewed and implemented during the year. o There was an ongoing awareness of emerging governance trends. o The Office was kept abreast of all the relevant legislation and regulations as well as major developments that could impact on its operations. 43 Limpopo Office of the Premier Annual Report 2012/13 o The Office performed its duties in line with the approved delegation framework for the functions assigned to the Accounting Officer in terms of the PFMA and Treasury Regulations. 9. Transfer of functions • List of activities transferred or received o The function of Traditional Affairs was transferred to the Department of Co-operative Governance, Human Settlements and Traditional Affairs (COGHSTA) with effect from 1 April 2011. o No functions were received by the Office of the Premier from other institutions. • Reference to legal document that gave authority to the transfer of function/s o The transfers were approved by the executing authority in terms of the provisions of the Public Service Act and the PFMA and the transfer of budgets, personnel and assets was handled in terms of the PFMA and related legislation. • Names of entity to/from whom transfer was made/received o The provincial department to which the function was transferred is the Department of COGHSTA • Effect on the operations of the department o The transfer had the effect that the Office of the Premier will now focus on the functions for which it has been established in the constitution and the Public Service Act, removing line activities. • Financial implications of the transfer of function/s o The function was transferred with its budget and the vote allocation for the Office of the Premier was appropriately adjusted. 10. Asset management All the assets belonging to the Office of the Premier have been captured in the Asset Reg ister and the Asset Register complies with the minimum requirements. 11. Events after the reporting date There are no events after the reporting date. 12. Information on predetermined objectives The policy for managing performance information and reporting has been developed and approved by the Accounting Officer. The Strategic Planning Unit is on a regular basis checking th e validity of th e performance information reported. 13. SCOPA resolutions SCOPA Resolutions for 2010/11 have been implemented to finality. No SCOPA Resolution 2011/12 financial year had as yet been received as at 31 March 2013. 44 Limpopo Office of the Premier Annual Report 2012/13 14. Prior modifications to audit reports The Office of the Premier has developed an action plan to address issues raised in the 2010/11 audit report and management letter. The action plan and progress made with the implementation thereof is a standing item on the agenda of the weekly Top Management meetings for the Office off the Premier and quarterly Audit Committee meetings: Nature of qualification, disclaimer, adverse Financial year in which it Progress made in clearing I resolving the matter* opinion and matters of non-compliance first arose 2005/2006 The policy for managing performance information and Predetermined objectives reporting has been developed and approved by the Non-compliance with regulatory and reporting Accounting Officer. The strategic planning Unit is on a requirements quarterly basis checking the validity of the information reported. The Accounting Officer did not ensure that the Office of the Premier has and maintains an effective, efficient and transparent system and internal controls regarding performance management, which describe and represent how the institution's processes of performance planning , monitoring, measurement, review and reporting will be conducted , organised and managed, as required in terms of section 38(1 )(a)(i) and (b) of the PFMA. Non-adherence to legislation 16. Contrary to the requirements of TR 3.2 .11 and 2009/10 All vacant funded posts in Internal Audit were advertised. At Sections 38 (1) (a) (i) and 76 (4) (e) of the PFMA, the the end of September 2010 the appointment process was at internal audit function did not adequately assist the short listing stage. Internal Audit function has since been accounting officer by evaluating internal controls related transferred to the Provincial Treasury, with effect from the 1st to compliance with laws, regulations and controls, and by October 2010. developing recommendations for their enhancement and improvement. The Audit Committee has reviewed all the charters for 17. Contrary to the requirements of TR 3.1.1 0 and 2010/11 financial year. Audit function has since been sections 76(4)(d) and 77 of the PFMA, the audit transferred to the Provincial Treasury. committee of the department, though required in its formal terms of reference, did not review the internal audit The invoice register has been established where all invoices charter for the year ended 31 March 2010. received are recorded as well as the date of payment but this has proven to be ineffective in monitoring the movement of the 18. Contrary to the requirements of TR 8.2.3 and PFMA invoices. An invoice tracking system has been developed and 45 Limpopo Office of the Premier Annual Report 2012/13 Nature of qualification, disclaimer, adverse Financial year in which it Progress made in clearing I resolving the matter* opinion and matters of non-compliance first arose Sections 38 (1) (f) and 76 (4) (b), payments due to it will be implemented with effect from 1.4.2011. This is an creditors were not settled within 30 days from receipt of effort placed in place in order to monitor the turnaround time in an invoice. processing the invoices. Responsibilities between Provisioning and Accounts Units have been segregated to enable the employees to be accountable in processing the invoices. Non compliance with S38(1)(j) and Treasury 2009/2010 The systems and processes put in place to manage the funds Regulations 8.4 for transfer payments transferred to Traditional Councils have been developed and put in place by Office of the Premier and Provincial Treasury. During the audit it was noted that the department made The transfers to traditional councils are made to the Provincial transfer payments to Traditional Councils, however no Traditional Trust bank account (Tribal Levies & Trust Account) written assurance was obtained from the traditional which is administered by Provincial Treasury and officials councils indicating that they had implemented effective, employed by the Office of the Premier in the District Control efficient and transparent financial management and Offices (DCO's) The DCO officials employed by the Office are internal control systems. Furthermore, the accounting the cheque signatories on the Trust Account and this limits the officer did not maintain appropriate measures to ensure risk that the funds may be used for unintended purposes. that the transfers and subsidies to Traditional Councils Every Traditional Council renders monthly income and were applied for their intended purposes, e. g regular expenditure returns to Provincial Treasury where the Trust reporting procedures. Account is managed, hence giving account of funds transferred and utilisation thereof. Traditional Affairs has been transferred to the Department of Local Government and Housing with effect from 1.4.2011. Non compliance with Section 42(3) of the PFMA for transferring of assets 2009/2010 During the audit it was noted that the department The Office of the Premier makes an arrangement with the transferred personal computers to the Department of receiving department that immediately the Handing and Education. Handing over certificate was signed on 2 Taking Over certificate is signed by the Accounting Officer of February 2010 by the accounting officer of Office of the the receiving department, the Office be informed Premier and on 30 March 2010 by the accounting officer telephonically to collect the document in order to inform the Department of Education. However the letter regarding Provincial Treasury and the Office of the Auditor General the transfer of assets was submitted to Provincial within 14 days as prescribed. In cases where there are delays 46 Limpopo Office of the Premier Annual Report 2012/13 Nature of qualification, disclaimer, adverse Financial year in which it Progress made in clearing I resolving the matter* opinion and matters of non-compliance first arose Treasury and the Auditor General on 28 April 2010. in receiving responses from the receiving departments, Asset Therefore the department has not complied with Section Management Unit makes follow-ups. 42(3) of PFMA as the letter was not submitted within 7 days after the transfer of assets. Non compliance with S& T Policy 2009/10 A presentation was made during the Executive Management meeting outlining the process to be followed and controls to During the audit it was noted that the subsistence and be implemented in managing "Advances". Controls are travel advances were not set-off against the subsistence implemented as outlined in the Policy. Interests earned and travel claims within 30 days from the date of during the 2010/11 financial year have been determined and arrival/return from the trip and advance claims. recovered along with the outstanding amounts from the salaries of the affected employees. 14. Exemptions and deviations received from the National Treasury The Office did not request any exemption or deviation from the Public Finance Management Act, Treasury Regulations or deviation from the financial reporting requirements from National Treasury. 15. Interim Financial Statements. The Interim Financial Statements were prepared during the financial year and submitted to the Provincial Treasury and Internal Audit for auditing. 19. Approval The Annual Financial Statements set out on pages 53 to 104 have been approved by the Accounting Officer(s) ~() c:L__.pz, ...... :. \...... DIRECTOR-GENERAL 47 Limpopo Office of the Premier Annual Report 2012/13 3.3 REPORT OF THE AUDITOR- GENERAL TO THE LIMPOPO PROVINCIAL LEGISLATURE ON VOTE NO. 1: LIMPOPO OFFICE OF THE PREMIER REPORT ON THE FINANCIAL STATEMENTS Introduction 1. I have audited the financial statements of the Office of the Premier set out on pages 53 to 104 wh ich comprise the appropriation statement, the statement of financial position as at 31 March 2013, the statement of financial performance, statement of changes in net assets and the cash flow statement for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information. Accounting officer's responsibility for the financial statements 2. The accounting officer is responsible for the preparation of these financial statements in accordance with the Departmental financial reporting framework prescribed by the National Treasury, the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA), Division of Revenue Act of South Africa , 2012 (Act No. 5 of 2012) (DoRA) 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. Auditor-General's responsibility 3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the General Notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the aud itor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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 entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. 48 Limpopo Office of the Premier Annual Re port 2012/13 Opinion 6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Office of the Premier as at 31 March 2013, and its financial performance and cash flows for the year then ended in accordance with the Departmental financial reporting framework prescribed by the National Treasury and the requirements of the PFMA and DoRA. EMPHASIS OF MATTER PARAGRAPHS I draw attention to the matters below. My opinion is not modified in respect of these matters. Significant uncertainties 7. With reference to note 29 to the financial statements, the department is a defendant in various lawsuits. The department is opposing these claims as it challenges the validity of the lawsuits. The ultimate outcome of these matters cannot presently be determined and no provision for any li ability that may result has been made in the financial statements. Material underspending of the budget 8. As disclosed in the appropriation statement, the Limpopo Office of the Premier has materially under spent the budget on administration, institutional development and policy and governance to the amount of R31 531 OOO .This was due to the implementation of austerity measures as per the provincial instruction. Additional matters 10. 1 draw attention to the matters below. My opinion is not modified in respect of these matters: Unaudited supplementary schedules 11 . The supplementary information set out on pages 80 to 104 does not form part of the financial statements and is presented as additional information. I have not audited this schedule and , accordingly, I do not express an opinion thereon. Financial reporting framework 12. The financial reporting framework prescribed by the National Treasury and applied by the department is a compliance framework. The wording of my opinion on a compliance framework should reflect that the financial statements have been prepared in accordance with this framework and not that they 49 Limpopo Office of the Premier Annua l Report 2012/13 "present fairly". Section 20(2) (a) of the PAA, however, requires me to express an opinion on the fair presentation of the financial statements. The wording of my opinion therefore reflects this requirement. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 13. In accordance with the PAA and the General Notice issued in terms thereof, I report the following findings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion. Predetermined objectives 14. I performed procedures to obtain evidence about the usefulness and reliability of the information in the annual performance report as set out on pages 19 to 35 of the annual report. 15. The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury's annual reporting principles and whether the reported performance is consistent with the planned objectives. The usefulness of information further relates to whether indicators and targets are measurable (i.e. well defined, verifiable, specific, measurable and time bound) and relevant as required by the National Treasury Framework for managing programme performance information. 16. The reliability of the information in respect of the selected programmes is assessed to determine whether it adequately reflects the facts (i.e. whether it is valid, accurate and complete). 17. There were no material findings on the annual performance report concerning the usefulness and reliability of the information. Additional matter 18. Although no material findings concerning the usefulness and reliability of the performance information were identified in the annual performance report, I draw attention to the following matter below. Achievement of planned targets 19. Of the total number of 28 targets planned for the year, 11 of targets were not achieved during the year under review. This represents 39% of total planned targets that were not achieved during the year under review. This was mainly due to the fact that austerity measures were implemented to reduce spending on, among others, personnel expenditure. Compliance with laws and regulations 20. I performed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding financial matters, financial so Limpopo Office of the Premier Annual Report 2012/13 management and other related matters. My findings on material non-compliance with specific matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA are as follows Audit committees 21. An audit committee was not in place from 1 January 2013 to 31 March 2013. This is in contravention to the requirements of sections 38(1 )(a)(ii) and 77 of the PFMA and Treasury Regulation (TR) 3.1.1 22. The audit committee did not have approved written terms of reference in place from 1 April 2012 to 29 October 2012. The terms of reference was approved by the Executive Authority on 29 October 2012. This is in contravention to the requirements of TR 3.1.8. Expenditure Management 23. The accounting officer did not take effective steps to prevent irregular and fruitless and wasteful expenditure, as required by section 38(1 )(c)(ii) of the PFMA and TR 9.1 .1. Human resource management 24. Funded vacant posts were not filled within 12 months as required by Public Service Regulation 1/VII/C.1A.2. Procurement and contract management 25. Persons in service of other state institutions who had a private or business interest in contracts awarded by the department participated in the process relating to that contract in contravention of TR 16A8.4. Strategic planning and performance 26. The department did not provide provincial legislature with the plan at least 10 days prior to the discussion of the department's budget vote as required by TR 5.2.2. Internal control 27. 1 considered internal control relevant to my audit of the financial statements, annual performance report and compliance with laws and regulations. The matters reported below under the fundamentals of internal control are limited to the significant deficiencies that resulted in the findings on compliance with laws and regulations included in this report. Leadership 28. The accounting officer did not exercise adequate oversight responsibility regarding actions taken to address the requirements of legislations. 51 Limpopo Office of the Premier Annual Report 2012/13 Financial and performance management 29. Adequate actions were not taken on the IT internal controls deficiencies identified during the audit. Furthermore, the department does not have an IT Policy. Governance 29. The audit committee's term came to an end prior to year end and consequently the audit committee did not exercise oversight on the implementation of matters reported by the internal audit function for the third and fourth quarter. Polokwane 6 August 2013 AUDITOR - GENERAL SOUTH AFRICA Auditing to build public confidence 52 Limpopo Office of the Premier Annual Report 2012/13 3.4 REPORT ON THE FINANCIAL STATEMENTS The Annual Financial Statements in the Annual Report must consist of the items listed below: Vote 1- LP: PREMIER Appropriation Statement for the year ended 31 March 2013 Appropriation per programme 2012/13 2011/12 Adjusted Shifting of Funds Virement Final Actual Variance Expenditure Final Actual Appropriation Appropriation Expenditure as%of Appropriation Expenditure final appropriation R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO % R'OOO R'OOO 1 ADMINISTRATION Current payment 111,025 (150) - 110,875 100,020 10,855 90.2% 103,628 98,412 Transfers and subsidies 836 - 46 882 793 89 89.9% 4 ,179 4 ,111 Payment for capital assets 5,126 - - 5,126 1,128 3,998 22.0% 6,951 2,915 Payment for financial assets - 150 - 150 85 65 56.7% 200 181 116,987 - 46 117,033 102,026 15,007 114, 958 105,619 2 INSTITUTIONAL DEVELOPMENT Current payment 108,652 - - 108,652 100,760 7,892 92.7% 101 ,749 99,398 Transfers and subsidies 5,069 - (66) 5,003 3,105 1,898 62.1% 3,851 3,337 Payment for capital assets 4,570 - - 4,570 2,939 1,631 64.3% 5,060 2,427 118,291 - (66) 118,225 106,804 11,421 110, 660 105, 162 3 POLICY & GOVERNANCE Current payment 68,942 - - 68,942 63,842 5,100 92.6% 74,920 67,920 Transfers and subsidies 30 - 20 50 47 3 94.0% 260 253 68,972 - 20 68, 992 63,889 5, 103 75, 180 68, 173 Subtotal 304,250 -- 304,250 272,719 31 ,531 89.6% 300,798 278,954 Statutory Appropriation Current payment 1888 1,888 1888 - 100.0% 1790 1790 ITOTAL 306,138 - - 306,138 274,607 31,531 89.7% 302,588 280,744 Reconciliation with Statement of Financial Performance Add Departmental receipts 382 176 Actual amounts per Statement of Financial Performance (Total 306,520 302,764 Actual amounts per Statement of Financial Performance 274,607 280,744 53 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Appropriation Statement for the year ended 31 March 2013 Appropriation per Economic classification 2012/13 2011/12 Expenditure as Adjusted Final Actual Final Actual Shifting of Funds Virement %of final Appropriation Appropriation Expenditure Variance Appropriation Expenditure appropriation R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO % R'OOO R'OOO Current payments Compensation of employees 196,699 - - 196,699 187,501 9,198 95.3% 174,711 173,189 Goods and ser'Jices 93,808 (150) - 93,658 79,009 14,649 84.4% 107,376 94,329 Transfers & subsidies Provinces & municipalities 580 - - 580 559 21 96.4% 400 356 Departmental agencies & accounts 20 - - 20 10 10 50.0% - - Households 5,335 - - 5,335 3,376 1,959 63.3% 7,890 7,347 Payment for capital assets Buildings & other fixed structures 3,500 - - 3,500 - 3,500 - - Machinery & equipment 5,336 - - 5,336 3,208 2,128 60.1% 11 ,951 5,287 Software & other intangible assets 860 - - 860 859 1 99.9% 60 55 Payment for financial assets - 150 - 150 85 65 56.7% 200 181 I Total 306,138 - - 306,138 274,607 31,531 89.7% 302,588 280,744 54 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Appropriation Statement for the year ended 31 March 2013 Statutory Appropriation 2012/13 2011/12 Expenditure as Adjusted Final Actual Final Actual Direct charge against the Shifting of Funds Virement %of final Appropriation Appropriation Expenditure Variance Appropriation Expenditure National/Provincial Revenue Fund appropriation R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO % R'OOO R'OOO Member of executi\€ committee/parl iamentary officers 1,888 1,888 1,888 - 100.0% 1, 790 1,790 Total 1,888 . . 1,888 1,888 . 100.0% 1,790 1,790 55 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Appropriation Statement for the year ended 31 March 2013 Detail per programme 1 -ADMINISTRATION For the year ended 31 March 2013 2012113 2011/12 Expenditure as Adjusted Final Actual Final Actual Shifting of Funds Virement %of final Details per Sub-Programme Appropriation Appropriation Expenditure Variance Appropriation Expenditure appropriation R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO % R'OOO R'OOO 1.1 PREMIER SUPPORT Current payment 11,691 11,691 10,354 1,337 88.6% 11 ,658 10,902 - Transfers and subsidies 150 150 150 - 100.0% 3,649 3,644 1.2 EXECUTIVE COUNCIL SUPPORT Current payment 4,881 4,881 4,092 789 83.8% 5,001 4,664 1.3 DIRECTOR GENERAL Current payment 11,551 11 ,551 10,123 1.428 87.6% 11,214 9,860 Transfers and subsidies - - 10 6 Payment for capital assets 100 100 100 1,000 406 1.4 FINANCIAL MANAGEMENT Current payment 71.460 (150) 71 ,310 65,964 5,346 92.5% 66,391 63,692 Transfers and subsidies 676 46 722 639 83 88.5% 490 432 Payment for capital assets 5,026 5,026 1,128 3,898 22.4% 5,951 2,509 Payment for financial assets 150 150 85 65 56.7% 200 181 1.5 PROGRAMME SUPPORT: ADMINISTRATION Current payment 11 ,442 11,442 9,487 1,955 82.9% 9,364 9,294 Transfers and subsidies 10 I 10 4 6 40.0% 30 29 Total 116,987 - 46 117,033 102,026 15,007 87.2% 114,958 105,619 56 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Appropriation Statement for the year ended 31 March 2013 2012/13 2011/12 Programme 1 Per Economic Expenditure as Adjusted Final Actual Final Actual classification Shifting of Funds Virement %of final Appropriation Appropriation Expenditure Variance Appropriation Expenditure appropriation R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO % R'OOO R'OOO Current payments I Compensation of employees 71 ,276 71,276 66,977 4,299 94.0% 62 ,565 61 ,996 Goods and sel"v'ices 39,749 (150) 39,599 33,043 6,556 83.4% 41,063 36,414 Transfers & subsidies Provinces & municipalities 580 580 559 21 96.4% 400 356 Departmental agencies & accounts 20 20 10 10 50.0% Non-profit institutions - - Households 236 46 282 224 58 79.4% 3,779 3,756 Payment for capital assets Buildings & other fixed structures 3,500 3,500 3,500 Machinery & equipment 1,626 1,626 1 '128 498 69.4% 6,891 2,861 Software & other intangible assets - - 60 55 Payment for financial assets 150 150 85 65 56.7% 200 181 Total 116,987 - 46 117,033 102,026 15,007 87.2% 114,958 105,619 57 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP: PREMIER Appropriation Statement for the year ended 31 March 2013 Detail per programme 2- INSTITUTIONAL DEVELOPMENT For the year ended 31 March 2013 2011/12 '· 2012/13 Expenditure as Adjusted Final Actual Final Actual Shifting of Funds Virement %of final Details per Sub-Programme Appropriation Appropriation Expenditure Variance Appropriation Expenditure appropriation R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO % R'OOO R'OOO 2.1 STRATEGIC HUMAN RESOURCES Current payment 43,993 (350) 43,643 41 ,801 1,842 95.8% 45,024 43,735 Transfers and subsidies 4,400 (117) (66) 4,217 2,925 1,292 69.4% 3,225 3,216 2.2 INFORMATION COMMUNICATION TECHNOLOGY Current payment 25,581 25,581 22,186 3,395 86.7% 17,833 17,070 Transfers and subsidies 10 25 35 32 3 91.4% 40 39 Payment for capital assets 4,280 4,280 2,687 1,593 62 .8% 4,525 2,048 2.3 LEGAL SERVICES Current payment 13,846 350 14,196 13,596 600 95.8% 13,339 13,307 Transfers and subsidies 659 659 60 599 9.1 % 586 82 2.4 COMMUNICATION SERVICES ' Current payment 13,958 13,958 13,044 914 93.5% 16,708 16,475 Transfers and subsidies 57 57 56 1 98.2% Payment for capital assets 290 290 252 38 86.9% 535 379 2.5 PROGRAMME SUPPORT: INSTITUTIONAL DEVELOPMENT Current payment 11 ,274 11 ,274 10,133 1 '141 89.9% 8,845 8,811 Transfers and subsidies 35 35 32 3 91.4% Total 118,291 - (66) 118,225 106,804 11,421 90.3% 110,660 105,162 58 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Appropriation Statement for the year ended 31 March 2013 2012/13 2011 /1 2 Programme 2 Per Economic Expenditure as Adjusted Final Actual Final Actual classification Shifting of Funds Virement %of final Appropriation Appropriation Expenditure Variance Appropriation Expenditure appropriation R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO % R'OOO R'OOO Current payments Compensation of employees 73,227 73,227 69,835 3,392 95.4% 65,068 64,847 Goods and services 35,425 35,425 30,925 4,500 87.3% 36,681 34,551 Transfers & subsidies Households 5,069 (66) 5,003 3,105 1,898 62.1% 3,851 3,338 Payment for capital assets Machinery & equipment 3,710 3,710 2,080 1,630 56.1 % 5,060 2,426 Software & other intangible assets 860 860 859 1 99.9% Total 118,291 - (66) 118,225 106,804 11,421 90.3% 110,660 105,162 59 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Appropriation Statement for the year ended 31 March 2013 Detail per programme 3- POLICY & GOVERNANCE For the year ended 31 March 2013 2012/13 2011/12 Expenditure as Adjusted Final Actual Final Actual Shifting of Funds Virement %of final Details per Sub-Programme Appropriation Appropriation Expenditure Variance Appropriation Expenditure appropriation R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO % R'OOO R'OOO 3.1 INTERGOVMENTAL RELATIONS Current payment 12,597 12,597 11 ,258 1,339 89.4% 13,612 12,273 Transfers and subsidies 30 30 29 1 96.7% 3.2 PROVINCIAL POLICY MANAGEMENT Current payment 32,555 28 32,583 31 ,107 1,476 95.5% 34,445 30,130 3.3 PROGRAMME SUPPORT: POLICY & GOVERNANCE Current payment 9,389 9,389 8,517 872 90 .7% 8,025 7,836 Transfers and subsidies 20 20 18 2 90.0% 3.4 SPECIAL PROGRAMMES Current payment 14,401 (28) 14,373 12,960 1,413 90.2% 18,838 17,681 Transfers and subsidies - - 260 253 Total 68,972 - 20 68,992 63,889 5,103 92.6% 75,180 68,173 60 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Appropriation Statement for the year ended 31 March 2013 2012113 2011/12 Programme 3 Per Economic Expenditure as Adjusted Final Actual Final Actual classification Shifting of Funds Virement %of final Appropriation Appropriation Expenditure Variance Appropriation Expenditure appropriation R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO % R'OOO R'OOO Current payments Compensation of employees 50,308 50,308 48,801 1,507 97.0% 45,288 44,556 Goods and services 18,634 18,634 15,041 3,593 80.7% 29,632 23,364 Transfers & subsidies Households 30 20 50 47 3 94.0% 260 253 Total 68,972 - 20 68,992 63,889 5,103 92.6% 75,180 68,173 61 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Notes to the Appropriation Statement for the year ended 31 March 2013 Detail of transfers and subsidies as per Appropriation Act (after Virement): Detail of these transactions can be -.newed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-H) to the Annual Financial Statements. 2 Detail of specifically and exclusively appropriated amounts voted (after Virement): Detail of these transactions can be -.newed in note 1 (Annual Appropriation) to the Annual Financial Statements. 3 Detail on payments for financial assets Detail of these transactions per programme can be -.newed in the note to Payments for financial assets to the Annual Financial Statements. 4 Explanations of material variances from Amounts Voted (after virement): Final Actual Variance Variance as a % 4.1 Per programme: Appropriation Expenditure of Final Approp. R'OOO R'OOO R'OOO % ADMINISTRATION 118921 103914 15007 13% The underspending is due the implementation of the pro-.nncial instruction on austerity measures INSTITUTIONAL DEVELOPMENT 118225 106804 11421 10% Delays in procurement processes by SITA resulted in the under-spending as the projects were not implemented POLICY & GOVERNANCE 68992 63889 5103 7% The underspending is due the implementation of the pro-.nncial instruction on austerity measures (In the case of surpluses on programmes, a detailed explanation must be gil.€n as to whether it is as a result of a sa-.nng or underspending.) 62 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Notes to the Appropriation Statement for the year ended 31 March 2013 Final Actual Variance Variance as a % 4.2 Per economic classification: Appropriation Expenditure of Final Approp. R'OOO R'OOO R'OOO % Current expenditure Compensation of employees 196699 187501 9198 5% Goods and services 93658 79009 14649 16% Transfers and subsidies Prol.inces and municipalities 580 559 21 4% Departmental agencies and accounts 20 10 10 50% Households 5335 3376 1959 37% Payments for capital assets Buildings and other fixed structures 3500 3500 100% Machinery and equipment 5336 3208 2128 40% Software and other intangible assets 860 859 1 0% Payments for tina ncia I assets 150 85 65 43% The underspending is due the implementation of the prol.incial instruction on austerity measures 63 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Statement o"f Financial Pertormance "for the year ended 31 March 2013 2012/13 2011/12 Note R"OOO R"OOO REVENUE Annual appropriation 1 304, 250 300,798 Statutory appropriation 2 1,888 1,790 Departmental re-..enue 3 382 176 TOTAL REVENUE 306,520 302,764 EXPENDITURE Current expenditure Compensation of employees 6 187,501 173,189 Goods and services 7 79,009 94,329 Total current expenditure 266,510 267,518 Transfers and subsidies Transfers and subsidies g 3,945 7,703 Total transfers and subsidies 3,945 7,703 Expenditure for capital assets Tangible capital assets 10 3,208 5,287 Software and other intangible assets 10 859 I I 55 Total expenditure for capital assets 4,067 5,342 Payments for financial assets B 85 181 TOTAL EXPENDITURE 274,607 280,744 SURPLUS/(DEFICIT) FOR THE YEAR 31,913 22,020 Reconciliation of Net Surplus/(Deficit) for the year Voted Funds 31,531 21,844 Annual appropriation 31,531 21 , 844 Departmental re-..enue and NRF Receipts 15 382 176 SURPLUS/(DEFICIT) FOR THE YEAR 31,913 22,020 64 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Statement of Financial Position as at 31 March 2013 2012/13 2011/12 Note R'OOO R'OOO ASSETS Current Assets 47,149 37,343 Unauthorised expenditure 10 32,038 Cash and cash equivalents 11 45,642 4,157 Receivables 12 1,507 1,148 TOTAL ASSETS 47,149 37,343 LIABILITIES Current Liabilities 46,271 36,727 Voted funds t o be surrendered to the Revenue Fund 13 46,150 36,462 Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund 14 57 120 Payables 15 64 145 TOTAL LIABILITIES 46,271 36,727 NET ASSETS 878 616 Represented by: Recoverable revenue 878 I ._I ___6_1_6___, TOTAL 878 616 65 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Statement of Changes in Net Assets for the year ended 31 March 2013 NET ASSETS 2012/13 2011/12 Note R'OOO R'OOO Opening balance 616 872 Transfers 262 (256) Irrecoverable amounts written off 7 -43 -121 Debts revised -107 Debts recovered (included in departmental receipts) -463 -424 Debts raised 768 396 Closing balance 878 616 TOTAL 878 616 66 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Cash Flow Statement for the year ended 3~ March 2013 2012/13 2011/12 Note R"OOO R"OOO CASH FLOWS FROM OPERATING ACTIVITIES Receipts 306,892 303,566 Annual appropriated funds received 1_1 304,250 300,798 Statutory appropriated funds received 2 1,888 1,790 Departmental revenue received 3 754 978 Net {increase)/ decrease in working capital 31,598 1,495 Surrendered to Revenue Fund {23, 728) {27,471) Surrendered to RDP Fund/Donor {395) Current payments {266,510) {267,518) Payments for financial assets {85) {181) Transfers and subsidies paid {3,945) {7, 703) Net cash flow available from operating activities 16 44,222 1,793 CASH FLOWS FROM INVESTING ACTIVITIES Payments for capital assets g {4,067) {5,342) Proceeds from sale of capital assets 3_3 1,068 1,712 Net cash flows from investing activities (2,999) (3,630) CASH FLOWS FROM FINANCING ACTIVITIES Increase/ {decrease) in net assets 262 {256) Net cash flows from financing activities 262 (256) Net increase/ {decrease) in cash and cash equivalents 41,485 {2,093) Cash and cash equivalents at beginning of period 4,157 6,250 Cash and cash equivalents at end of period 17 45,642 4,157 67 Limpopo Office of the Premier Annual Report 2012/13 3.5 STATEMENT OF ACCOUNTING POLICIES AND RELATED MATTERS For the year ended 31 March 2013 The Financial Statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. However, where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the Financial Statements and to comply with the statutory requirements of the Public Finance Management Act, Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the Act and the Division of Revenue Act, Act 1 of 2010. 1. Presentation of the Financial Statements 1.1 Basis of preparation The Financial Statements have been prepared on a modified cash basis of accounting, except where stated otherwise. The modified cash basis constitutes the cash basis of accounting supplemented with additional disclosure items. Under the cash basis of accounting transactions other events are recognised when cash is received or paid. 1.2 Presentation currency All amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department. 1.3 Rounding Unless otherwise stated all financial figures have been rounded to the nearest one thousand Rand (R'OOO). 68 Limpopo Office of the Premier Annual Report 2012/13 1.4 Comparative figures Prior period comparative information has been presented in the current year's financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format of the current year's financial statements. 1.5 Comparative figures - Appropriation Statement A comparison between actual amounts and final appropriation per major classification of expenditure is included in the Appropriation Statement. 2. Revenue 2.1 Appropriated funds Appropriated funds comprises of departmental allocations as well as direct charges against revenue fund (i.e. statutory appropriation). Appropriated funds are recognised in the financial records on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the financial records on the date the adjustments become effective. Unexpended appropriated funds are surrendered to the National/Provincial Revenue Fund. Any amounts owing to the National/Provincial Revenue Fund at the end of the financial year are recognised as payable in the statement of financial position. Any amount due from the National/Provincial Revenue Fund at the end of the financial year is recognised as a receivable in the statement of financial position . 2.2 Departmental revenue All departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise. Any amount owing to the National/Provincial Revenue Fund at the end if the financial year is recognised as a payable in the statement of financial position. 69 Limpopo Office of the Premier Annual Report 2012/13 No accrual is made for amounts receivable from the last receipt date to the end of the reporting period. These amounts are however disclosed in the disclosure notes to the annual financial statements. 2.3 Direct Exchequer receipts All direct exchequer receipts are recognised in the statement of financial performance when the cash is received and is subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise. Any amount owing to the National/Provincial Revenue Funds at the end of the financial year is recognised as a payable in the statement of financial position. 2.4 Direct Exchequer payments All direct exchequer payments are recognised in the statement of financial performance when final authorisation for payment is effected on the system (by no later than 31 March of each year). 2.5 Aid assistance Aids assistance is recognised as revenue when received All in-kind aid assistance is disclosed at fair value on the date of receipt in the annexures to the Annual Financial Statements The cash payments made during the year relating to aid assistance projects are recognised as expenditure in the statement of financial performance when final authorisation for payments is effected on the system (by no later than 31 March of each year) The value of the assistance expensed prior to the receipt of funds is recognised as a receivable in the statement of financial position . Inappropriately expensed amounts using aid assistance and any unutilised amounts are recognised as payables in the statement of financial position. 70 Limpopo Office of the Premier Annual Report 2012/13 All CARA funds received must be recorded as revenue when funds are received. The cash payments made during the year relating to CARA earmarked projects are recognised as expenditure in the statement of financial performance when final authorisation for payments effected on the system (by no later then 31 March of each year) Inappropriately expensed amounts using CARA funds are recognised as payables in the statement of financial position. Any unutilised amounts are transferred to retained funds as they are not surrendered to the revenue fund. 3. Expenditure 3.1 Compensation of employees 3.1.1 Salaries and wages Salaries and wages are expensed in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). Other employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements at its face value and are not recognised in the statement of financial performance or position. Employee costs are capitalised to the cost of a capital project when an employee spends more than 50% of his/her time on the project. These payments form part of expenditure for capital assets in the statement of financial performance. 3.1.2 Social contributions Employer contributions to post employment benefit plans in respect of current employees are expensed in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). 71 Limpopo Office of the Premier Annual Report 2012/13 No provision is made for retirement benefits in the financial statements of the department. Any potential liabilities are disclosed in the financial statements of the National Revenue Fund and not in the financial statements of the employer department. Employer contributions made by the department for certain of its ex-employees (such as medical benefits) are classified as transfers to households in the statement of financial performance. 3.2 Goods and services Payments made during the year for goods and/or services are recognised as an expense in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). The expense is classified as capital if the goods and/or services were acquired for a capital project or if the total purchase price exceeds the capitalisation threshold (currently R5, 000). All other expenditures are classified as current. Rental paid for the use of buildings or other fixed structures is classified as goods and services and not as rent on land. 3.3 Interest and rent on land Interest and rental payments are recognised as an expense in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). This item excludes rental for the use of buildings or other fixed structures. If it is not possible to distinguish between payment for the use of land and the fixed structures on it, the whole amount should be recorded under goods and services. 3.4 Payments for financial assets Debts are written off when identified as irrecoverable. Debts written-off are limited to the amount of savings and/or under spending of appropriated funds. The write off occurs at year-end or when funds are available. No provision is made for irrecoverable amounts but an estimate is included in the disclosure notes to the financial statements amounts. All other losses are recognised when authorisation has been granted for the recognition thereof. 72 Limpopo Office of the Premier Annual Report 2012/13 3.5 Transfers and subsidies Transfers and subsidies are recognised as an expense when the final authorisation for payment is effected on the system (by no later than 31 March of each year). 3.6 Unauthorised expenditure When confirmed unauthorised expenditure is recognised as an asset in the statement of financial position until such time as the expenditure is either approved by the relevant authority, recovered from the responsible person or written off as irrecoverable in the statement of financial performance. Unauthorised expenditure approved with funding is derecognised from the statement of financial position when the unauthorised expenditure is approved and the related funds are received. Where the amount is approved without funding it is recognised as expenditure in the statement of financial performance on the date of approval. 3.7 Fruitless and wasteful expenditure Fruitless and wasteful expenditure is recognised as expenditure in the statement of financial performance according to the nature of the payment and not as a separate line item on the face of the statement. If the expenditure is recoverable it is treated as an asset until it is recovered from the responsible person or written off as irrecoverable in the statement of financial performance. 3.8 Irregular expenditure Irregular expenditure is recognised as expenditure in the statement of financial performance. If the expenditure is not condoned by the relevant authority it is treated as an asset until it is recovered or written off as irrecoverable. 4. Assets 4.1 Cash and cash equivalents Cash and cash equivalents are carried in the statement of financial position at cost. 73 Limpopo Office of the Premier Annual Report 2012/13 Bank overdrafts are shown separately on the face of the statement of financial position. For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand , deposits held, other short-term highly liquid investments and bank overdrafts. 4.2 Other financial assets Other financial assets are carried in the statement of financial position at cost. 4.3 Prepayments and advances Amounts prepaid or advanced are recognised in the statement of financial position when the payments are made and are derecognised as and when the goods/services are received or the funds are utilised. Prepayments and advances outstanding at the end of the year are carried in the statement of financial position at cost. 4.4 Receivables Receivables included in the statement of financial position arise from cash payments made that are recoverable from another party (including departmental employees) and are derecognised upon recovery or write-off. Receivables outstanding at year-end are carried in the statement of financial position at cost plus any accrued interest. Amounts that are potentially irrecoverable are included in the disclosure notes. 4.5 Investments Capitalised investments are shown at cost in the statement of financial position. 74 Limpopo Office of the Premier Annual Report 2012/13 Investments are tested for an impairment loss whenever events or changes in circumstances indicate that the investment may be impaired. Any impairment loss is included in the disclosure notes. 4.6 Loans Loans are recognised in the statement of financial position when the cash is paid to the beneficiary. Loans that are outstanding at year-end are carried in the statement of financial position at cost plus accrued interest. Amounts that are potentially irrecoverable are included in the disclosure notes. 4. 7 Inventory Inventories that qualify for recognition must be initially reflected at cost. Where inventories are acquired at no cost, or for nominal consideration, their cost shall be their fair value at the date of acquisition. All inventory items at year-end are reflected using the weighted average cost or FIFO cost formula. 4.8 Capital assets 4.8.1 Movable assets Initial recognition A capital asset is recorded in the asset register on receipt of the item at cost. Cost of an asset is defined as the total cost of acquisition. Where the cost cannot be determined accurately, the movable capital asset is stated at fair value. Where fair value cannot be determined, the capital asset is included in the asset register at R1. All assets acquired prior to 1 April 2002 are included in the register R 1. 75 Limpopo Office of the Premier Annual Report 2012/13 Subsequent recognition Subsequent expenditure of a capital nature is recorded in the statement of financial performance as "expenditure for capital assets" and is capitalised in the asset register of the department on completion of the project. Repairs and maintenance is expensed as current "goods and services" in the statement of financial performance. 4.8.2 Immovable assets Initial recognition A capital asset is recorded on receipt of the item at cost. Cost of an asset is defined as the total cost of acquisition. Where the cost cannot be determined accurately, the immovable capital asset is stated at R1 unless the fair value for the asset has been reliably estimated. Subsequent recognition Work-in-progress of a capital nature is recorded in the statement of financial performance as "expenditure for capital assets". On completion , the total cost of the project is included in the asset register of the department that is accountable for the asset. Repairs and maintenance is expensed as current "goods and services" in the statement of financial performance. 4.8.3 Intangible assets Initial recognition An intangible asset is recorded in the asset register on receipt of the item at cost. Cost of an intangible asset is defined as the total cost of acquisition. Where the cost cannot be determined accurately, the intangible asset is stated at fair value. Where fair value cannot be determined, the intangible asset is included in the asset register at R1. All intangible assets acquired prior to 1 April 2002 can be included in the asset register at R1.* Subsequent expenditure 76 Limpopo Office of the Premier Annual Report 2012/13 Subsequent expenditure of a capital nature is recorded in the statement of financial performance as "expenditure for capital asset" and is capitalised in the asset register of the department. Maintenance is expensed as current "goods and services" in the statement of financial performance. 5. Liabilities 5.1 Payables Recognised payables mainly comprise of amounts owing to other governmental entities. These payables are carried at cost in the statement of financial position . 5.2 Contingent liabilities Contingent liabilities are included in the disclosure notes to the financial statements when it is possible that economic benefits will flow from the department, or when an outflow of economic benefits or service potential is probable but cannot be measured reliably. 5.3 Contingent assets Contingent assets are included in the disclosure notes to the financial statements when it is probable that an inflow of economic benefits will flow to the entity. 5.4 Commitments Commitments are not recognised in the statement of financial position as a liability or as expenditure in the statement of financial performance but are included in the disclosure notes. 5.5 Accruals Accruals are not recognised in the statement of financial position as a liability or as expenditure in the statement of financial performance but are included in the disclosure notes. 5.6 Employee benefits 77 Limpopo Office of the Premier Annual Report 2012/13 Short-term employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements. These amounts are not recognised in the statement of financial performance or the statement of financial position. 5.7 Lease commitments Finance lease Finance leases are not recognised as assets and liabilities in the statement of financial position. Finance lease payments are recognised as an expense in the statement of financial performance and are apportioned between the capital and interest portions. The finance lease liability is disclosed in the disclosure notes to the financial statements. Operating lease Operating lease payments are recognised as an expense in the statement of financial performance. The operating lease commitments are disclosed in the discloser notes to the financial statement. 5.8 Impairment The department tests for impairment where there is an indication that a receivable, loan or investment may be impaired. An assessment of whether there is an indication of possible impairment is done at each reporting date. An estimate is made for doubtful loans and receivables based on a review of all outstanding amounts at year-end. Impairments on investments are calculated as being the difference between the carrying amount and the present value of the expected future cash flows I service potential flowing from the instrument. 5.9 Provisions Provisions are disclosed when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the obligation can be made. 6. Receivables for departmental revenue Receivables for departmental revenue are disclosed in the disclosure notes to the annual financial statements. 7. Net Assets 78 Limpopo Office of the Premier Annual Report 2012/13 7.1 Capitalisation reserve The capitalisation reserve comprises of financial assets and/or liabilities originating in a prior reporting period but which are recognised in the statement of financial position for the first time in the current reporting period. Amounts are recognised in the capitalisation reserves when identified in the current period and are transferred to the National/Provincial Revenue Fund when the underlying asset is disposed and the related funds are received. 7.2 Recoverable revenue Amounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off. 8. Related party transactions Specific information with regards to related party transactions is included in the disclosure notes. 9. Key management personnel Compensation paid to key management personnel including their family members where relevant, is included in the disclosure notes. 79 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Notes to the Annual Financial Statements for the year ended 31 March 2013 1 Annual Appropriation 1.1 Annual Appropriation 2012/13 Funds not Appropriation Final Actual Funds requested/ Received Appropriation Received not received 2011/12 Programmes R'OOO R'OOO R'OOO R'OOO ADM IN ISTRATION 117,033 117,033 114,958 INSTITUTIONAL DEVELOPMENT 118,225 118,225 110,660 POLICY & GOVERNANCE 68,992 68,992 75,180 Total 304,250 304,250 300,798 2012/13 2011/12 R'OOO R'OOO 2 Statutory Appropriation President and Deputy President salaries Member of executi-.e committee/parliamentary officers 1,888 1,790 Total 1,888 1,790 Actual Statutory Appropriation recei-.ed 1,888 1,790 2012/13 2011/12 Note R'OOO R'OOO 3 Departmental Revenue S ales of goods and services other than capital assets 3.1 295 277 Interest, dividends and rent on land 3.3 23 28 Sales of capital assets 3.4 1,068 1,712 Transactions in financial assets and liabilities 3.5 436 673 Total re-.enue collected 1,822 2 ,690 Less: Own re\enue included in appropriation 14 1,440 2,514 Departmental revenue collected 382 176 80 Li mpopo Office of t he Premie r Annua l Report 2012/13 Vote 1- LP:PREMIER Notes to the Annual Financial Statements for the year ended 31 March 2013 2012/ 13 201 1/12 Note R'OOO R ' OOO 3 . 1 S ales of" goods and servi c es other than capital assets 3 Sal es of goods a n d serVices p rodu ced by t h e d e p a rtme nt 294 276 Sal es by mark e t est a blish ment 1 33 129 Oth e r sal es 1 6 1 I I 1 47 Sal es of scrap , w aste a nd oth e r u sed c urrent good s 1 1 Total 295 277 2012/ 13 2011/1 2 Note R ' OOO R'OOO 3 . 2 Interest ~ dividends and rent on land 3 I n t erest: 23 28 Total 23 28 2012/ 13 2011/ 12 Note R ' OOO R ' OOO 3 . 3 Sales of" c a pital assets 3 Tangible assets 1,068 1,712 Machinery and equipment 4 2 1,06 8 1,712 Total 1 , 068 1 , 712 201 2 /1 3 2011/1 2 N o te R 'OOO R'OOO 3 . 4 Tra nsactions in financial assets and liabilities 3 Receivabl es 673 Oth er Receipts i n c l uding R ecoverabl e R e\le:nu e 4 36 T otal 4 36 673 201 2 /13 201 1/1 2 N o te R ' O OO R'OOO 4 Aid Assistance 4.1 Aid assistance received in cash from other sources Local Openi ng B alan ce 395 Sur rendered t o t he donor (395) C losing Balance 4. 2 Total Opening B a l a n ce 395 Surre n dered I T r ansferred t o re t a i ned fun ds (395) C l o sing Balanc e 81 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP: PREMIER Notes to the Annual Financial Statements for the year ended 31 March 2013 2011/12 R"OOO 5 Ce>mponsation o"f' Empl oyeos 5.'"1 S a l aries and w ages B as i c sal a ry 1 3 1 ~ 408 117 , 1 52 P e rform a n ce a w a rd 22 1~1 20 Service Based 1 63 2 66 Com pen sative/circums t a ntia l 2~042 3 ~146 Othe r n o n - p e n s ionabl e a llovva n ces 30,042 30 ~ 036 Total 163.677 151.720 2012/13 2011/'"12 R"OOO R"OOO 5 . 2 Social Contributions Employer contributions P e n s i o n 16.. 7 89 14,978 M e dical 7,010 6, 4 62 B a r gaini n g counci l 25 29 Total 23. 824 21 . 469 Total compensation o'f' employees 173. '"189 Ave r age numbe r of e mployees 463 474 2012/13 2011/12 R"OOO R"OOO 6 Good s and sorvlcos Adminis tra tive f ees 6 Advertis ing 4 .. 839 6,20 2 A sset s l ess tha n R S, OOO 6 . ~ 1 1 5 1 ~589 Bursaries ( e mplo y ees ) 4 3 0 2 29 C a t e r-in g 4 ,629 7,271 C o mmunicatio n 6, 1 5 0 7 ,381 Compute r services 6 . 2 :13 .. 710 9, 0 55 Con s ultants, contract o r s a nd a g e n c y/o utsourced services 6 . 3 6,940 7 ~ 24 1 E nte rtainme nt 64 Audit c ost - e xte rn a l 6 . 4 3,325 2 , 578 F l eet services :1,978 3, 2 82 Inventory 6 . 5 4 ,216 5 , 926 O p e r a ting l eases 6 ~ 830 7,337 Prope rty p a yme nts 6 . 6 6 , 7 26 6 ,23 2 Tra n s p o rt pro vide d as part o f the d e p o rt m e nta l acth.lities 2~19 1 5 , :14 6 Tra ve.l a nd s ubsis t e n ce 6 . 7 12, 4 57 1 7,414 V e nues a nd facilities 3,412 5 ,038 Tra ining a nd s t a ff d evel o pme nt 633 1 ,73 7 Othe r o p e r a ting e xpe nditure 6 . 8 3 64 665 Total 79.009 94. 329 2012/13 2011/12 R"OOO R"OOO 6.1 A ssets l ess than RS. OOO Tangible assots 11 5 .... 589 rvlachine ry a nd e qui p m e nt 115 1 , 5 8 9 Total 115 '"1.589 82 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP: PREMIER Notes to the Annual Financial Statements for the year ended 31 March 2013 2012/"13 20"1"1/"12 Note R·ooo R·ooo 6 . 2 Computer- ser-vices 6 S ITA computer services 11,012 7,154 External computer service providers 2 , 698 1 , 901 Total "13,7"10 9 , 055 20"12/"13 20"1"1/"12 Note R"OOO R "OOO 6.3 Consultants. contractors and agency/out:sourced se rvices 6 Business and advisory services 408 531 Legal costs 2,169 2,507 Contractors 4 ,310 4 ,10 9 Agency and support/outsourced services 53 94 Total 6,940 7,241 20"12/"13 20"1"1/12 Note R"OOO R"OOO 6.4 Audit cost- external 6 Regularity audits 3 ,325 2,578 Total 3 , 325 2,578 20"12/"13 20"1"1/"12 Note R"OOO R"OOO 6 .5 Inventory 6 Food and food supplies 144 975 Other consurnabl es 504 407 Materials and supplies 92 196 Stati onery and printing 3,476 4,348 Total 4 , 2"16 5 , 926 20"12/"13 20'1"1/"12 Note R"OOO R"OOO 6.6 Property payments 6 Municipal services 2,724 2,448 Property maintenance and repairs 1,686 1,040 Other 2,316 2,744 Total 6,726 6 , 232 2012/13 20"11/'12 Note R"OOO R"OOO 6 . 7 Travel and subsistence 6 Local 11,053 16,140 Foreign 1,404 1,274 Total 12, 457 17, 4'14 20"12/'13 2011/'12 Note R"OOO R"OOO 6 .8 Other operating expenditure 6 Professional bodies. membership and subscriptio n fees 62 41 Resettl ement costs 18 210 Other 284 414 Total 364 665 83 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP: PREMIER Notes to the Annual Financial Statements for the year ended 31 March 2013 2012/13 2011/12 Note R"OOO R"OOO 7 Payments for financial assets Debts written off 7.1 85 181 Total 85 181 2012/13 2011/12 Note R"OOO R"OOO 7.1 Debts written off 7 Nature o'f debts written off Irrecoverable Amounts written-off 43 Departmental Debts 77 Other debt: written off 44 Total 43 121 Other debt: written off 42 Traditional Leaders debts 60 Total 42 60 Total debt written off 85 181 2012/13 2011/12 Note R"OOO R"OOO 8 Transfers and Subsidies Pro\Ances and municipalities Annexure '1A 558 355 Departmental agencies a nd accounts ANNEX U RE1B 10 Households ANNEXURE1C 3,106 3,489 G ifts, donations and sponsorships made A NNEXURE 1E 271 3,859 Total 3 , 945 7 . 703 2012/13 2011/12 Note R"OOO R"OOO 9 Expenditure 'for capital assets Tangible assets 3 , 208 5 , 287 M achinery and equipment 28 3 , 208 5,287 Software and other intangible assets 859 55 Computer softw are 29 859 55 Total 4 , 067 5 , 342 9.1 Analysis o'ffunds utilised to acquire capital assets- 2012/13 Voted Funds Aid assistance TOTAL R"OOO R"OOO R"OOO Tangible assets 3,208 3 . 208 M achinery and equipment 3,208 3 , 208 Software and other intangible assets 859 859 Computer softw are 859 859 Total 4,067 4 . 067 84 Limpopo Office of the Prem ier Annual Report 2012/13 Vote 1- LP:PREMIER Notes to the Annual Financial Statements for the year ended 31 March 2013 9 . 2 Analysis o f funds utilised t o acquire capital assets- 2011/1 2 Voted Funds Aid assistance TOTAL R ' OOO R'OOO R ' OOO Tangible assets 5 , 287 5,287 Machinery and equipment 5,287 - I 5 , 287 Software and other intangible assets 55 55 Computer software 55 55 Total 5 , 342 5 , 342 2012/13 2011/12 Note R'OOO R'OOO 10 Unauthorised Expenditure 10.1 Reconciliation of unauthorised expenditure Opening balance 32,038 32,038 Less: Amounts approved by Parliament/Legislature with funding ( 32,038) Unauthorised expenditure awaiting authorisation I written off 32, 038 10.2 Analysis of unauthorised expenditure awaiting authorisation per economic classification Current 32,038 Total 32, 038 10. 3 Analysis of unauthorised expenditure awaiting authorisation per type Unauthorised expenditure relating to overspending of the ~te or a main division within the vote 32,038 Total 32, 038 2012/13 2011/12 Note R ' OOO R ' OOO 11 Cash and Cash Equivalents Consolidated Paymaster General Account 43 Disbursements (1,140) Investments (Domestic) 46,739 4,157 Total 45, 642 4 ,1 57 2012113 Less than one One to three Older than three 2011/12 year years years Total Note R ' OOO R ' OOO R ' OOO R ' OOO R ' OOO 12 Receivables Claims reco"verable 12.1 Annex3 15 15 Staff debt 12.2 469 101 570 263 Other debtors 12.3 202 259 461 922 885 Total 686 360 461 1,507 1,148 85 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Notes to the Annual Financial Statements for the year ended 31 March 2013 20~2/~3 20~~/~2 Note R"OOO R"OOO 12.'1 Claims recoverable ~2 Pro \Ancial d e p a rtme nts 15 Total 15 20~2/~3 20~~/~2 Note R"OOO R"OOO 12.2 Staff debt ~2 (Gr o up m a j o r cat egor ies, b u t lis t m a t e ria l items) Staff debto r s 570 263 Total 570 263 20~2/~3 20~ ~ / ~2 Note R"OOO R "OOO 12.3 Other debtors ~2 (Gr o u p m a j or cat egories, b u t lis t materia l ite m s) Othe r D ebt o r s 922 885 Total 922 885 20~2/~3 20~ ~ /~2 Note R"OOO R"OOO 13 Voted Funds to be Surrendered to the Revenue Fund Ope ning b a l a n ce 36,462 38, 302 Tra n s f e r fro m s t a t e m e nt o f fina n c ia l p e rforma n ce 31,531 21,844 P a id during the y ear (21,843) (23,684) Closing balance 46. 150 36, 462 20~2/~3 20~ ~/~2 Note R"OOO R"OOO 14 Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund Ope ning b a l a n ce 120 1,217 T r a n s fe r fro m Sta t e m e nt of F ina n c ia l P e rfo rma n ce 382 176 Own r e -...enue inc lude d in a ppro pria tio n 1,440 2,514 Paid during t h e y ear (1,885) (3,787) Closing balance 57 ~20 2012/13 2011/12 Note R"OOO R "OOO 15 Payables- current Clearing accounts ~ 5 . 4 57 145 Othe r p a y a bles ~5 . 2 7 Total 64 ~45 86 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Notes to the Annual Financial Statements for the year ended 31 March 2013 2012/13 2011/12 Note R'OOO R'OOO 15.1 Clearing accounts 15 (Identify major categories , but list material amounts) Salary - Income Tax 46 110 Salary - Pension Fund 11 35 Total 57 145 2012/13 2011/12 Note R'OOO R'OOO 15.2 Other payables 15 (Identify major categories, but list material amounts) Deparment of education 7 Total 7 2012/13 2011/12 Note R'OOO R'OOO 16 Net cash flow available from operating activities Net surplus/(deficit) as per Statement of Financial Performance 31,913 22,020 Add back non cash/cash movements not deemed operating activities 12,309 (20,227) (lncrease)/decrease in receivables -current (359) 1,405 (lncrease)/decrease in other current assets 32,038 lncrease/(decrease) in payables -current {81) 90 Proceeds from sale of capital assets (1,068) (1,712) Expenditure on capital assets 4,067 5,342 Surrenders to Revenue Fund (23,728) (27,471) Surrenders to RDP Fund/Donor (395) Own revenue included in appropriation 1,440 2,514 Net cash flow generated by operating activities 44,222 1,793 2012/13 2011/12 Note R'OOO R'OOO 17 Reconciliation of cash and cash equivalents for cash flow purposes Consolidated Paymaster General account 43 Disbursements (1,140) Cash with commercial banks (Local) 46,739 4,157 Total 45, 642 4 , 157 87 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Notes to the Annual Financial Statements for the year ended 31 March 2013 2012/1 3 2011/12 Note R'OOO R'OOO 18 Contingent liabilities and contingent assets 18. 1 Contingent liabilities Liable to Nature Motor vehicle guarantees Employees Annex 2A 61 Housing loan guarantees Employees Annex 2A 398 395 Claims against the department Annex 28 118 280 lntergo....,mmental payables (unconfirmed balances) Annex 4 21 Total 516 757 18. 2 Contingent assets 2012/13 2011/12 Nature of contingent asset Note R'OOO R'OOO Loss of Assets of the Department 38 86 Exceeded Cellphone expenditure 160 Absent from office during strike 12 Go....,mment Printing 191 Remuniration outside e mpl o y ement 2 ,000 2 ,000 Motor car Accident 582 79 Bursary loan 66 Damage to Property 44 Erraneous Deductions 9 Leave without pay Total 2,740 2,528 2012/13 2011/12 Note R ' OOO R'OOO 19 Commitments Curr-ent expenditure Approved and contracted 9,4771 18 , ~241 Appro""'d but not yet contracted I 9 ,477 18,424 Capital Expenditure (including transfers) Approved and contracted 1,551 I Approved but not y et contracted 3,475 I ~721 5 ,026 272 Total Commitments 14,503 18,696 88 Limpopo Office of the Premier Annua1Report2012/13 Vote 1- LP:PREMIER Disclosure Notes to the Annual Financial Statements for the year ended 31 March 2013 2012/13 2011/12 R'OOO R'OOO 20 Accruals Listed by economic classification 30 days 30+ days Total Total Goods and services 2,451 2,451 986 Transfers and subsidies 23 23 Other 2,170 2,170 Total 4 ,644 4 ,644 986 2012/13 2011/12 Listed by programme level Note R'OOO R'OOO Administrative Support 1,568 359 Institutional Support 1,450 627 Policy and Governance 1,626 Total 4,644 986 2012/13 2011/12 Note R'OOO R'OOO Confirmed balances with departments Annex 4 41 297 Total 41 297 2012/13 2011/12 Note R'OOO R'OOO 21 Employee benefits Leave entitlement 8,729 7,876 Service bonus {Thirteenth cheque) 5,347 4 ,920 Performance awards 3,187 3,048 Capped leave commitments 22,534 21 ' 137 Other Total 39,797 36,982 Included in Lea~ entitlement is a negati~ amount of R60573.59 89 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Disclosure Notes to the Annual Financial Statements for the year ended 31 March 2013 22 Lease commitments 33. 1 Operating leases expenditure Buildings and Specialised other fixed Machinery and 2012/13 mfll~ry assets Land structures equlprnent Total R"OOO R"OOO R "OOO R"OOO R'OOO N ot l ate r than 1 y ear 845 130 975 L ater than 1 y ear a nd not l ater t h a n S y ears 1 Total lease commitments 845 131 976 Bu i ldings and Specialised other fixed Machinery and 2011/"12 military assets Land structures equipment Total R"OOO R"OOO R"OOO R"OOO R'OOO N ot l ate r than 1 y ea r 2 , 491 305 2 , 796 Later than 1 y ea r a nd not l ate r t h a n 5 y ear s 175 175 Total lease commitments 2 ,491 480 2 ,971 2012/13 2011/12 Note R"OOO R"OOO 23 Irregular expenditure 23. 1 Reconciliation of" Irregular expenditure Opening b a l a n ce 6,707 6 , 707 Add : I rregul a r ex p e nditure - r e l ating to c urrent year 226 Irregular expenditure awaiting condonation 6,933 6 , 707 Analysis o'f awaiting condonation per age classification Current y ea r 226 P rior years 6 , 707 Total 6 , 933 2012/13 23. 2 Detail s of irregular expenditure -current year R'OOO Incident Disciplinary steps taken/crlrnina l proceedings RWOP5 226 226 2012113 2011/12 24 Fruitless and wasteful expenditure R ' OOO R ' OOO 24. 1 Reconciliation of fruitless and wasteful expenditure Opening bal a n ce 696 1 99 Fruitless a nd wasteful expenditure - r e l a ting t o curre n t year 11 641 L ess : Amounts tra n s fe rred t o receivabl es for r ecovery { 55) {144) Fruitless and wasteful expenditure awaiting resolution 652 696 24. 2 Analysis of awaiting resolution per economic classification Current 652 696 Total 652 696 24. 3 Anal sis of Current Year's Fruitless and wasteful expenditure 2012/13 Incident R ' OOO Travel a nd s ubs i s t a n ce transport 1 VAT c h arges 10 Total 11 90 Limpopo Office of the Premier Annua l Report 2012/13 Vote 1- LP:PREMIER Disclosure Notes to the Annual Financial Statements for the year ended 31 March 2013 Note R'OOO R'OOO 25 Related party transactions Payme nts m a de Transfers 5 , 945 Total 5 , 945 List related party rel ationships PUBLIC WORKS The office of the premier makes use of build i ngs belo n g ing to t h e Pro v1nc i a l D epartme nt of Public W o rks The Prov;ncial Department of Public W o r ks does not c h a rge a ny re nta l fo r t h e u se o f these build ings INTERNAL AUDIT AND AUDIT COMMITTEE The fees for services rendered by both Internal Audit and A u d it Com m ittee a re paid b y Pro vincial Treasu ry SOUTH AFRICAN POLICE SERVICES South African Police Services render security to The Office of The Premie r as w e ll as the Pre mie r himself fo r free 2012/ 13 2011/12 No. o., R'OOO R'OOO 26 Key management p e rsonnel Indi viduals Political office bearers ( provide d etai l be l o w) 1 1 , 8 8 8 1 , 790 Official s: Le v e l 15 to 16 10 9 , 5 2 6 8 , 786 Leve l 14 (incl CFO if at a l o w er lev e l) 17 1 3,620 12, 960 Family members of key m anage m ent pe r sonne l 3 8 2 9 588 Total 25, 863 24, 124 2012/13 2011 / 12 Note R'OOO R'OOO 27 Impa i rm e nt Debtors 461 507 Total 461 507 28 Movable Tangible C a pital Assets MOVEMENT IN MOVABLE TANGIBLE CAPITAL A S SETS PER A SSET REGISTER FOR T HE Y EAR E NDED 31 MARCH 201 3 C u r r y ear a djustme n ts t o Ope n ing p r i o r y ear Closing b alance b a l anc es Additions Disposals balance R ' OOO R ' OOO R'OOO R'OOO R'OOO MAC HINERY AND EQUIPMENT 43, 018 7 1 3 , 545 11, 371 35, 263 Transport assets 9,357 1,006 3 , 735 6 , 628 Computer equi pment 17,561 44 1 , 846 1,479 17,972 Furniture and offi ce equipment 15,045 2 7 418 6,140 9 , 350 Other machinery and equipment 1,055 275 17 1,313 T O TAL MOVABLE TANGI B L E CAPITAL A SSETS 43, 018 7 1 3 , 545 11 , 371 3 5 , 263 91 Limpopo Office of the Premier Annual Report2012/13 Vote 1- LP:PREMIER Disclosure Notes to the Annual Financial Statements for the year ended 31 March 2013 28.1 ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 (Capital work-in- Received progress current, not current costs paid (Paid and finance current year, lease received prior Cash Non-cash payments) year Total MACHINERY AND EQUIPMENT 3,208 337 3,545 Tra n sport assets 1,006 1,006 Computer equipment 1,828 18 1,846 Furniture and office equipment 99 319 418 Other machinery and equipment [ 275 275 TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 3,208 337 3,545 Disposals 28.2 DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Transfer out or Cash destroyed or received Sold for cash scrapped Total disposals Actual MACHINERY AND EQUIPMENT 5,205 6,166 11,371 1,067 Transport assets 3,735 3,735 Computer equipment 1,050 429 1,479 6 Furniture and office equipment 420 5,720 6,140 4 Other machine ry and equipment 17 17 0 8 TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS 5,205 6,166 11,371 1,067 28.3 Movement for 2011/12 MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012 Opening Closing balance Additions Disposals balance R'OOO R'OOO R'OOO R'OOO MACHINERY AND EQUIPMENT 51 ,271 5,287 13,540 43,018 Transport assets 14,875 1,144 6,662 9,357 Computer equipment 20,346 1,953 4,738 17, 561 Furniture and office equipment 15,783 1,402 2,140 15,045 Other machinery and equipment 267 788 1,055 TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 51,271 5,287 13,540 43,018 92 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Disclosure Notes to the Annual Financial Statements for the year ended 31 March 2013 28.4 Minor assets MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Specialised Intangible Heritage Machinery and Biological military assets assets assets equipment assets Total R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO Opening balance 7,938 7,938 Curr Year Adjustments to Prior Yr Balances 57 57 Additions 400 400 Disposals 214 214 TOTAL MINOR ASSETS 8,181 8,181 Specialised Intangible Heritage Machinery and Biological military assets assets assets equipment assets Total Number of R1 minor assets 1,941 1,941 Number of minor assets at cost 3,904 3,904 TOTAL NUMBER OF MINOR ASSETS 5 ,845 5 ,845 Minor assets MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012 Specialised Intangible Heritage Machinery a~d Biological military assets assets assets equipment assets Total R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO Opening balance 8,125 8 , 125 Additions 1,589 1 ,589 Disposals 1,776 1,776 TOTAL MINOR ASSETS 7,938 7 ,938 Specialised Intangible Heritage Machinery and Biological military assets assets assets equipment assets Total Number of R1 minor assets 1,997 1,997 Number of minor assets at cost 3,649 3,649 TOTAL NUMBER OF MINOR ASSETS 5 ,646 5 ,646 28. 5 Movable assets written off MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2013 Specialised Intangible Heritage Machinery and Biological military assets assets assets equipment assets Total R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO Assets written off 6,207 6,207 TOTAL MOVABLE ASSETS WRITTEN OFF 6,207 6 ,207 93 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Disclosure Notes to the Annual Financial Statements for the year ended 31 March 2013 29 Intangible Capita l Assets MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Curr year adjustments to Opening prior year Closing balance balances Additions Disposals balance R'OOO R'OOO R'OOO R'OOO R'OOO COMPUTER SOFTWARE 1,126 13 859 919 1,079 TOTAL INTANGIBLE CAPITAL ASSETS 1,126 13 859 919 1,079 Additions 29.1 ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Received current, not (Development paid (Paid work-in- current year, progress received prior Cash Non-cash current costs) year Total R'OOO R'OOO R'OOO R'OOO R'OOO COMPUTER SOFTWARE 859 859 TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS 859 859 Disposals 29.2 DISPOSALS OF INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Transfer out or Cash destroyed or received Sold for cash scrapped Total disposals Actual COMPUTER SOFTWARE 919 919 TOTAL DISPOSAL OF INTANGIBLE CAPITAL ASSETS 919 919 Movement for 2011/12 29. 3 MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012 Opening Closing balance Additions Disposals balance R'OOO R'OOO R'OOO R'OOO COMPUTER SOFTWARE 1,071 55 1,126 TOTAL INTANGIBLE CAPITAL ASSETS 1,071 55 1,126 94 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Annexures to the Annual Financial Statements for the year ended 31 March 2013 Annexure 1A STATEMENT OF UNCONDITIONAL GRANTS AND TRANSFERS TO MUNICIPALITIES GRANT ALLOCATION TRANSFER SPENT 2011/12 %of %of available Available Amount Amount funds spent Roll Total Actual funds received by spent by by Total NAME OF MUNICIPALITY Amount Overs Adjustments Available Transfer Transferred Municipality municipality municipality Available R'OOO R'OOO R'OOO R'OOO R'OOO % R'OOO R'OOO % R'OOO POLOKWAN E MUN ICIPALITY ___5_ 8_0______5_ 80__ _ 5_5_8_ 96% 469 580 580 558 469 95 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Annexures to the Annual Financial Statements for the year ended 31 March 2013 ANNEXURE 18 STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS ~- ·- -~ - -- TRANSFER ALLOCATION TRANSFER 2011/12 %of Available Adjusted Total Actual funds Appro-priation DEPARTMENT/AGENCY/ACCOUNT appropriation Roll Overs Adjustments Available Transfer transferred Act R'OOO ..-' ~ R'OOO R'OOO R'OOO R'OOO R'OOO % SABC (L1cense) -~ '"'" 20 20 10 50 0Yo 20 20 10 96 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Annexures to the Annual F-inancial Statements for the year ended 31 March 2013 ANNEXURE1C STATEMENT OF TRANSFERS TO HOUSEHOLDS i TRANSFER ALLOCATION EXPENDITURE 2011/12 %of Adjusted Available appropriation Roll Total Actual funds Appro- HOUSEHOLDS Act Overs Adjustments Available Transfer transferred priation Act R'OOO R'OOO R'OOO R'OOO R'OOO % R'OOO Transfers Premier Bursary Trust Fund 3,185 Claims Against State 659 659 60 9% 566 Social Benefit 931 931 914 98% 280 Bursaries Non-employees 3,423 3,423 2,132 62% 5,013 5,013 3,106 4,031 Total 5,013 5,013 3,106 4,031 97 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Annexures to the Annual Financial Statements for the year ended 31 March 2013 ANNEXURE1D STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED 2012/13 NAME OF ORGANISATION NATURE OF GIFT. DONATION OR SPONSORSHIP R'OOO .Received in kind Xtrata Alloys South Africa {PTY) LTD Premier Service Excellence Awards-Prices 225 Xtrata Alloys South Africa (PTY) LTD Premier Service Excellence Awards-Trofies and Certificates 120 LIMDEV Premier Service Excellence Awards-Refreshments so New Dawn Technologies Premier's Bursary Trust Fund 1 Polokwane Chemical Supplies Premier's Bursary Trust Fund 20 Shertina Maremane Premier's Bursary Trust Fund 1 Subtotal 22 395 TOTAL 22 395 98 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Annexures to the Annual Financial Statements for the year ended 31 March 2013 ANNEXURE1E STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE AND REMISSIONS, REFUNDS AND PAYME NTS MADE AS AN ACT OF GRACE NATURE OF GIFT, DONATION OR SPONSORSHIP 2012/13 2011/12 (Group major categories but list material items including name of organisation) R'OOO R'OOO Paid in cash Renovation Limpopo Older AGE Home 39 Tuition Fee:Mhlongo T.N 14 Tuition Fee:Ndobe M.N 9 Donation Baroka Football CluB 129 Tuition Fee: Mashala N.W 14 Tuition Fee: Malepe T 9 Mulenze World sports promotion 25 Tuition Fee: Mashele R.A 6 Tuition fee: Ngobeni N. 33 Tuition Fee: Makgoga M.W 23 Tuition Fee: Shilubane M . D 39 Electronic wheel chair: Maphapho L.T 11 Tuition Fee: Thibile I 27 Tuition Fee: Mashele H.L 13 Burial : Nkhumane J . J 18 Launch Millitery Vetarans Association 208 HIV/Aids Camp: Bokang Legacy 30 Hockey tournament: Mahwayi R.E 5 Church E-.ent: Living waters 40 Donation Gift of the Gi-.er 90 Funeral : Leboho NW. 10 Funding to Bethal Womans" Forum 20 Funding: Bethal Woman"s Forum 47 Transfer: Premier' bursary Trust Fund 2760 Donations To Old age homes for older people's day 240 State funeral: Phadagi 150 Tshilidzini Gate way Clinic 49 Department of Agriculture 50 Assessors 22 Subtotal 271 3,859 TOTAL 271 3,859 99 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Annexures to the Annual Financial Statements for the year ended 31 March 2013 ANNEXURE 2A STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2013- LOCAL Guaranteed Guarantees repayments/ original draw cancelled/ Guaranteed guaranteed Opening downs reduced/ Closing interest for year Realised losses not Gurarantee in capital balance 1 during the released during balance 31 ended 31 March recoverable i.e. GUARANTOR INSTITUTION respect of amount April 2012 year the year Revaluations March 2013 2013 claims paid out R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO < Motor vehicles Stannic 61 61 Subtotal 61 61 Housing ABSA Bank 85 85 VBS Mutual Bank 87 87 NP De-.elop. COR 311 311 Subtotal 396 87 85 398 Total 457 87 146 398 100 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Annexures to the Annual Financial Statements for the year ended 31 March 2013 ANNEXURE2B STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2013 Liabilities paid/ Liabilites Opening Liabilities cancelled/ recoverable balance incurred reduced during (Provide details Closing balance Nature of liability 1 April 2012 during the year the year hereunder) 31 March 2013 R'OOO R'OOO R'OOO R'OOO R'OOO Claims against the department Motor Coll ision 103 1 103 1 Services Rendered 117 117 Motor Coll ision 60 60 Subtotal 280 1 163 118 TOTAL 280 1 163 118 101 Limpopo Office of the Premier Annual Report2012/13 Vote 1- LP:PREMIER Annexures to the Annual Financial Statements for the year ended 31 March 2013 ANNEXURE 3 CLAIMS RECOVERABLE Confirmed ba lance outstanding Unconfirmed balance outstanding Total Government entity 31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012 R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO Department Departm ent of Social De\€lopment 15 15 Go\€rnment Printi ng 150 150 165 165 Tota l 165 165 102 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Annexures to the Annual Financial Statements for the year ended 31 March 2013 ANNEXURE 4 INTER-GOVERNMENT PAYABLES Confirmed balance outstanding Unconfirmed balance outstanding Total GOVERNMENT ENTITY 31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012 R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO DEPARTMENTS Current Department of Justice 297 297 International relations 21 21 South African Police Services 34 34 Limpopo Department of Education 7 7 Subtotal 41 297 21 41 318 Total Departments 41 297 21 41 318 103 Limpopo Office of the Premier Annual Report 2012/13 Vote 1- LP:PREMIER Annexures to the Annual Financial Statements for the year ended 31 March 2013 ANNEXURE 5 INVENTORY 2012/13 2011/12 Note Quantity T R'OOO Quantity I R'OOO Inventory Opening balance 6,660 1,832 12,838 2,020 Add/(Less): Adjustments to prior year balances Add: Additions/Purchases - Cash 33,410 2,643 17,176 2,201 (Less): Disposals (202) (46) (23,339) (1 ,929) (Less): Issues (31 ,207) (2 ,521) (15) (460) Add/(Less ): Adjustments (14) Closing balance 8,661 1,894 6,660 1,832 104 Limpopo Office of the Premier Annual Report 2012/13 4 HUMAN RESOURCE MANAGEMENT 4.1 Service delivery All departments are required to develop a Service Delivery Improvement (SOl) Plan . The following tables reflect the components of the SOl plan as well as progress made in the implementation of the plans. Table 1 1 - Main services provided and standards ' ,..l Potential Main services Actual customers Standard of service Actual achievement against standards customers Provide support Government Government Top 10 Prioritised risks mitigated in line with the Top ten prioritized risks were mitigated in line with the and advice on departments departments risk management plan Risk Management Plan. the The quality check of the risk management plan Draft Risk management plan was reviewed and analysed implementation will be done by the Provincial internal audit and by Internal Audit and their inputs were incorporated, of Risk risk management committee before the presented to the Risk management committee before Management presentation of the final document to the approval by the Accounting Officer. Programmes Accounting Officer and Audit Committee Consultation with Branches and management Consultation with Branches was conducted during the committee monthly and quarterly Risk Assessment for 2012/13 Risk Management Committee is functional Risk Management reports and other risk related issues were presented and deliberated upon by the committee and resolutions taken and implemented throughout the financial year. Risk Management Plan is incorporated in the Strategic Risk Register was incorporated in the Annual Annual Performance Plan; which is available on Performance Plan the website of the Office The plan was distributed to all programme managers The plan is distributed to relevant programme managers Risk Management policy and Risks Manual are published on the intranet for easy access by stakeholders. Risk Management Manuals distributed during the Risk management manuals were distributed Induction and Risk Assessment Workshops Progress on the implementation of the Risk Management 105 Limpopo Office of the Prem ier Annual Report 2012/13 Potential Main services Actual customers Standard of service Actual achievement against standards customers plan was received from programmes, monitored and evaluated and feedback provided to programme managers and risk management reports were generated. Support was provided to Risk Management Committee members on the e-learning project. Communicate with programme managers over Communication with risk champions was done through email and support is provided in the a form of on- e-mail and support was provided to Risk Management job training Committee members on thee-learning project. Risk Management Programmes are included in Risk Management Programme has been included in the the Annual Performance Plan of the Office Annual Performance Plan of the Office. Implementation of the risk plan was monitored and Quarterly progress reports submitted to Audit analysed and feedback provided to risk owners and Committee quarter progress reports generated for submission to stakeholders. Information on Risk Management is published in Risk Manuals were provided and presentations on Risk & the Risk Management Manuals which are handed Integrity Management made during induction workshops out mainly during the Induction and Risk for newly appointed officials. Management Workshops and also in Office website. Should Risk Management fail to assist The office managed to effectively mitigate all prioritised programmes to manage their risks properly, a risks during the financial year. No complaints were written apology will be provided. received from programmes regarding Risk Management Support. All funds will be utilised to ensure the best All funds were utilised in accordance with financial possible value for money. prescripts. Provide support All Departments, All Departments, All reported Fraud and Corruption cases The Public Service Commission has reffered four on the municipalities and municipalities addressed in all Departments hundred and six cases from the hotline. The Province implementation Limpopo citizens and Limpopo received fifty five percent feedback from the Public of integrity citizens Service Commission and forty percent of the cases have management been closed . programmes in The Province is at the fourth place in comparison with all 106 Limpopo Office of the Premier Annual Report 2012/13 Potential Main services Actual customers Standard of service Actual achievement against standards customers all Departments -= other Provinces. ( Effective implementation of Anti-Corruption Anti fraud and corruption strategy is being implemented in Strategy all the departments. Intensify Communication with relevant Continuous liaison was made with Law Enforcement stakeholders: Agencies [SSA, SAPS and SIU], Public in relation to Public cases of Fraud and Corruption. SAPS Public Service Commission All departments All Municipalities 1- Meetings with stakeholders are held monthly and quarterly. Provision of support to stakeholders Departments and municipalities were supported Interview the affected parties Affected parties were interviewed during investigations. Information sharing session on anti-corruption Corruption Prevention Coordinating Committee was strategy with stakeholders (COPCOC- Corruption) effectively coordinated. Reports were received and analysed. International Anti-Corruption day was held .. Constant feedback and consultation of reported Feedback I Progress reports on outstanding cases were cases received from departments and reported to PSC Disciplinary procedures and possible conviction. Disciplinary procedures were implemented and appropriate actions were taken. Monthly and Quarterly meetings held with Meetings were held with stakeholders to popularise the stakeholders to popularise the risk management risk management. policy Provide All Departments All Departments Aligned departmental frameworks to Provincial Coordinated the alignment Departmental Frameworks with advisory framework the Provincial one 107 Limpopo Office of the Premier Annual Report 2012/13 Potential Main services Actual customers Standard of service Actual achievement against standards customers services and Implementation of Provincial Policy framework in Provincial policy framework was implemented in all the support on all Departments departments. Strategy and Policy in all Provincial Policy Forum Bi-Monthly Provincial Policy Forum meetings were held bimonthly Departments Meeting with departments quarterly and meetings with departments were held quarterly. \ Framework is distributed electronically to Provincial Policy Frameworks distributed electronically departments and printed copies provided to those that requests for such. The Framework is also uploaded on the Limpopo Policy & Research Repository. One-on-one meetings held with members of One on one meetings held with Policy Units and regular Policy Units or heads of the relevant sub- consultations held to provide them with support branches Provide advisory support on Policy and strategy in Provided advisory services on policy and strategy in all all departments departments. Table 1.2- Consultation arrangements with customers Type of arrangement Actual Customers Potential Customers Actual achievements Consultation with Branches and Office of the Premier Line management Consultation with Branches was conducted during the Risk management committee monthly and Assessment for 2012/13 quarterly Risk Management Committee met in each quarter, Risk Management reports and other ri sk related issues were presented and deliberated upon by the committee and resolutions taken and implemented throughout the financial year. Executive Management meetings are held Consultation meeting with the four Branches are held Provincial Policy Forum bimonthly All Departments All Departments Held Quarterly meetings of the Policy Council, in accordance with Framework 108 Limpopo Office of the Premier Annual Report 2012/13 Table 1.3- s erv1ce d er 1very access strategy lr' ~.1·~ ~n/r Access Strategy Actual achievements Office within the city Citizens know where the office is and also bring their concerns and petitions Provincial website Updated and accurate information about the province and government departments. Signage of the buildinq visible Information about the building, addresses, telephone numbers, fax and website available Table 1 4 - Service information tool }-· - J'. Types of information tool Actual achievements Help desk Services readily available at the helpdesk on arrival and presentation. E-mail , lnternews, Limpopo news, exhibitions , provincial events and radio Communities are updated and informed. combos Information sessions conducted Information sessions are held during Provincial events Trade union meetings Regular meetings held ' ' Table 1.5- Complaints mechanism .... '~~ Complaints Mechanism Actual achievements .. Complaint mechanism procedure in place Complaints addressed through Premiers hotline ·~"----' Batho pele toll free number, Premier and President's hotline Hotline number properly managed Physical appearance by complainants Complaints recorded and referred to relevant office for intervention Verbal cases Attended and responded to accordingly UNION representations Matters referred to relevant office for intervention and response. 4.2 Expenditure Departments budget in terms of clearly defined programmes. The following tables summarise final audited expenditure by programme (Table 2.1) and by salary bands (Table 2.2). In particular, it provides an indication of the amount spent on personnel costs in terms of each of the programmes or salary bands within the department. 109 Limpopo Office of the Premier Annua l Report 2012/13 TABLE 21 - P ersonneI cos ts b'Y programme, 2012113 Personnel Training Professional and Personnel cost as Average personnel Total Expenditure Programme Expenditure Expenditure Special Services a percent of total (R'OOO) cost per employee (R'OOO) (R'O OO) (R'OOO) expenditure (R'OOO) Lop: Administration 103,914 68 ,865 0 0 66 .3 148 Lop: Insti tutional 106,804 69 ,835 0 0 65.4 150 development Lop: Policy and 63,889 48,801 0 0 76.4 105 Governance Z=Total as on Financial 274,603 187,501 0 0 68.3 403 Systems (BAS) TABLE 2.2- Personnel costs by salary bands, 2012113 Average personnel cost per employee Salary bands Personnel Expenditure (R'OOO) % of total personnel cost (R'OOO) Lower skilled (Levels 1-2 ) 4,319 2.2 113,658 Skilled (Levels 3-5) 7,384 3.8 150,694 High ly skilled production (Levels 6-8) 34,880 17.7 256,471 High ly skilled supervision (Levels 9-1 2) 76 ,999 39.2 452,935 Senior management (Levels 13-16) 61 ,069 31.1 872 ,414 Contract (Levels 1-2 ) 1,192 0.6 0 Contract ( Level 13 - 16) 1,658 0.8 829,000 Abnormal Appointment 0 0 0 TOTAL 187,501 95.4 403228 110 Limpopo Office of the Premier An nua l Report 2012/13 The following tables provide a summary per prog ramme (Table 2.3) and salary bands (Table 2.4), of expenditure incurred as a result of salaries, overtime, home owners allowance and medical assistance. In each case, the table provides an indication of the percentage of the personnel budget that was used for these items. TABLE 2.3- Salaries, Overtime, Home Owners Allowance and Medical Assistance by programme, 2012113 Salaries Overtime Home Owners Allowance Medical Assistance Salari es Overtime Medical Programme HOA as a % Am ount as a % of Amount as a % of Amount Amount Assistance as a of personnel (R'OOO) pe rsonnel (R'OOO ) personnel (R'OOO ) (R'OOO ) % of personnel cost cost cost cost Adm inistration lop Lop: Policy and Governance 38565 73.9 187 0.4 1279 .\ 2.5 1511 2.9 II Lop: Administration 50462 72 .4 374 0.5 2723 3.9 3265 4.7 Lop: In stitution Developm ent 55230 75.1 443 0.6 1742 ·- 2.4 2205 3 Pr2 develop pl an and support 0 0 0 0 0 0 0 0 v Pro4 trans and transversal 0 0 0 0 0 0 0 0 Pro8 internal audit 0 0 0 0 0 0 0 0 Proqram 11 provincial qito 0 0 0 0 0 " 0 0 0 Proqram 9 ministerial support serv 0 0 0 0 0 0 0 0 TOTAL 145 464 74 1004 0.5 5744 2.9 6983 3.6 TABLE 2.4 - Salaries, Overtime, Home Owners Allowance and Medical Assistance by salary bands, 201211 3 Home Owners Salari es Overtime Medical Assistance Allowance Salary Bands Salaries Overtime HOA as a Medical Amount as a % of Amount as a% of Amount % of Amount Assistance as a (R'OOO) personnel (R'OOO ) personnel (R'OOO ) personnel (R'OOO ) % of personnel cost cost cost cost Lower skilled(Levels 1-2) 2693 62.3 29 0.7 41 9 9. 7 597 13.8 111 Limpopo Office of the Premier Annua l Report 2012/ 13 Home Owners Salaries Overtime Medical Assistance Allowance Salary Bands Salaries Overtime HOA as a Medical Amount as a% of Amount as a% of Amount %of Amount Assistance as a (R'OOO) personnel (R'OOO) personnel (R'OOO) personnel (R'OOO) % of personnel cost cost cost cost Skilled (Levels 3-5) 4880 65.4 119 1.6 529 7.1 715 9.6 Highly skilled production(Levels 6-8) 25641 72.6 485 1.4 1267 182 1 -· 3.6 5.2 Highly skilled supervision(Levels 9-12) 59931 73.9 360 0.4 1864 2.3 2645 3.3 Senior management (Levels 13-16) 49482 75.5 0 0 1667 2.5 1204 1.8 Contract (Levels 1-2) 1181 98.8 10 0.8 0 0 0 0 Contract (Levels 9 - 12) 0 0 0 0 0 0 0 0 Contract ( Level 13 - 16) 1656 97.7 0 0 0 0 2 0.1 Abnormal Appointment 0 0 0 0 0 0 0 0 Total 145 464 74 1,003 0.5 5746 2.9 6984 3.6 4.3 Employment and vacancies The following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and wh ether there are any staff that are additional to the establishment. This information is presented in terms of three key variables: - programme (Table 3.1 ), salary band (Table 3.2) and critical occupations (Table 3.3). Departments have identified critical occupations that need to be monitored . Table 3.3 provides establishment and vacancy information for the key critical occupations of the department. The vacancy rate reflects the percentage of posts that are not filled. TABLE 3.1 - Employment and vacancies by programme, 31 March 2013 Number of posts filled Programme Number of posts Number of posts filled Vacancy Rate additional to the establishment Administration 322 281 12.7 2 112 Limpopo Office of the Premier Annua l Report 2012/13 Number of posts filled Programme Number of posts Number of posts filled Vacancy Rate additional to the establishment Institutional Development 124 106 ' ~ 14.5 (' 0 -~ I Policy and Governance 92 76 17.3 I \ 0 1 -- I Total 538 463 I 13.9 ·,_; 2 TABLE 3.2- Employment and vacancies by salary bands, 31 March 2013 I / ... 'l Number of posts filled additional Salary band Number of posts Number of posts filled Vacancy Rate to the establishment ~. Lower skilled (Levels 1-2) 44 38 6.8 -, 0 ) ' r, - ;:-.... Skilled 50 49 / 4 l' 0 - (Levels 3-5) '- j Highly skill ed supervision 181 134 25.4 0 (Levels 6-8) .\ - .-ro Highly skilled supervision( Levels 201 170 10.9 0 ,.. 9-12) Senior management(Levels 13- 62 70 3.2 0 16) ~ TOTAL 538 46 15 0 TABLE 3.3- Employment and vacancies by critical occupation, 31 March 2013 Number of posts filled additional to Critical occupations Number of posts Number of posts filled Vacancy Rate the establishment IT Personnel 16 14 12.5 0 TOTAL 16 14 12.5 0 The information in each case reflects the situation as at 31 March 2012. For an indication of changes in staffing patterns over the year under review, please refer to section 5 of this report. 113 Limpopo Office of the Premier Annual Report 2012/13 4.4 Job evaluation The Public Service Regulations, 1999 introduced job evaluation as a way of ensuring that work of equal value is remunerated equally. Within a nationally determined framework, executing authorities may evaluate or re-evaluate any job in his or her organisation. In terms of the Regulations all vacancies on salary levels 9 and higher must be evaluated before they are filled. Th is was complemented by a decision by the Minister for the Public Service and Administration that all SMS jobs must be evaluated before 31 December 2002. The following table (Table 4.1) summarises the number of jobs that were evaluated during the year under review. The table also provides statistics on the number of posts that were upgraded or downgraded. TABLE 4.1- Job Evaluation, 1 Apri/2012 to 31 March 2013 Number of %of posts Posts Upgraded Posts downgraded Number of Salary band Jobs evaluated by %of posts posts Number Number % of posts evaluated Evaluated salary bands evaluated Lower skilled (Levels 1-2) 44 0 0 0 0 0 0 Skilled (Levels 3-5) 50 0 0 0 0 0 0 Highly skilled production (Levels 6-8) 181 0 0 0 0 0 0 Highly skilled supervision (Levels 9-12) 201 63 33.68 38 20.32 0 0 Senior Management Service Band A 42 0 0 0 0 0 0 Senior Management Service Band B 15 0 0 0 0 0 0 Senior Management Service 4 0 0 0 0 0 0 Band C Senior Management Service 1 0 0 0 0 0 0 Band D TOTAL 538 0 0 0 0 0 0 114 Limpopo Office of the Premier Annual Report 2012/13 The following table provides a summary of the number of employees whose salary positions were upgraded due to their posts being upgraded. The number of employees might differ from the number of posts upgraded since not all employees are automatically absorbed into the new posts and some of the posts upgraded could also be vacant. TABLE 4.2- Profile of employees whose salary positions were upgraded due to their posts being upgraded, 1 Apri/2012 to 31 March 2013 Beneficiaries African Asian Coloured White Total _.IJ~ Female 18 0 0 0 - 18 ~ Male 19 0 0 0 c~ 19 ~ '· TOTAL 37 0 0 0 37 ' \.. ..._ __ Employees with a disability ..... The following table summarises the number of cases where remuneration levels exceeded the grade determined by job evaluation. Reasons for the deviation are provided in each case. TABLE 4.3- Employees whose salary level exceed the grade determined by job evaluation, 1 Apri/2012 to 31 March 2013 (in terms of PSR 1. V.C.3) Job Number of Remunerati Occupation evaluation Reason for deviation employees on level level .... Legislators, senior officials & 2 14 15 1 = scarce skills ' managers 1 = deployment of HoD { -· Total Number of Employees whose salaries exceeded the level determined by job evaluation in 2 2012/13 Percentage of total employment 0 Table 4.4 summarises the beneficiaries of the above in terms of race, gender, and disability. TABLE 4.4- Profile of employees whose salary level exceed the grade determined by job evaluation, 1 April 2012 to 31 March 2013 (in terms of PSR 1.V.C.3) Beneficiaries African Asian Coloured White Total Female 0 0 0 0 0 115 Lim popo Office of the Premier Annual Report 2012/ 13 Beneficiaries African Asian Coloured White Total Male 1 1 0 0 2 I ~ TOTAL 1 1 0 0 2 Employees with a disability 0 [If there were no cases where the remuneration bands exceeded the grade determined by job evaluation, use the following table as TABLE 4.3] Total Number of Employees whose salaries exceeded the grades determined by job evaluation in 2012/ 13 2 4.5 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 (Table 5.1) and by critical occupations (Table 5.2). (These "critical occupations" should be the same as those listed in Table 3.3). TABLE 5. 1 -Annual turnover rates by salary band for the period 1 April 2012 to 31 March 2013 ~ Number of employees Appointments and Terminations and transfers Salary Band per band as on 1 transfers into the Turnover rate out of the department April2012 department Lower skilled (Levels 1-2) 52 0 0 0% Ski lled (Levels 3-5) 44 0 5 11.3% Highly skilled production(Levels 6-8) 137 2 5 3.6% Highly skilled supervision(Levels 9-12) 181 0 2 1.1% Senior Management SeNice Band A 39 4 1 2.5% Senior Management SeNice Band B 14 0 2 14.2% Senior Management SeNice Band C 4 2 2 50% Senior Management SeNice Band D 1 0 0 0% TOTAL 472 8 17 3.6% 116 Limpopo Office of the Premier Annual Repo rt 2012/13 TABLE 5.2- Annual turnover rates by critical occupation for the period 1 April 2012 to 31 March 2013 Occupation: Number of employees Appointments and Terminations and transfers per occupation as on 1 transfers into the Turnover rate out of the department April2012 department ~ IT Personnel (PGITO) 3 0 I 1 "'] 7. 1 IT Personnel (DGITO) 11 0 l 0 ·- ~ TOTAL 14 0 ' J 1 J 7.1 Table 5.3 identifies the major reasons why staff left the department. Table 5.3- Reasons why staff are leaving the department ~- "· I ·-. II ' Termination Type Number %of total -- Death 3 '- 11.9 Resignation 4 28.57 Expiry of contract 0 0 -i Dismissal -operational changes 0 0 ~ Dismissal- misconduct 0 0 .. Dismissal- inefficiency 0 0 Discharged due to ill-health 0 0 Retirement 5 29.4 Transfers to other Public Service Departments 3 29.4 Other 0 0 TOTAL 17 Total number of employees who left as a % of the total employment 3.03% 117 Limpopo Office of the Premier Annual Report 2012/13 Table 5.4- Promotions by critical occupation Salary level Promotions to Progressions to another Notch progressions as a Employees as at 1 promotions as a % of Occupation another salary notch within a salary %of employees by April2012 employees by level level occupation occupation Legislators, Senior Officials & 150 3 2 Managers TOTAL 150 3 2 "· Table 5.5- Promotions by salary band Salary bands Promotions to Progressions to another Notch progressions as a Employees 1 April promotions as a % of Salary Band another salary notch within a salary % of employees by salary 2012 employees by salary level level band level Lower skilled (Levels 1-2) 52 0 0 31 59 .6 Skilled (Levels 3-5) 44 0 0 26 59 Highly skilled production 133 0 0 72 52.5 (Levels 6-8) Highly skilled supervision 188 0 0 70 38.6 (Levels9-12) Senior management (Levels13- 58 0 5.1 45 77.5 16) TOTAL 472 0 0.6 244 51.6 118 Limpopo Office of the Premier Annual Report 2012/13 4.6 Employment equity The tables in th is section are based on the formats prescribed by the Employment Equity Act, 55 of 1998. 6.1- Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March 2013 Occupational categories (SASCO) Male Female Total African Coloured Indian White African Coloured Indian White Leg islators, senior officials and managers 79 0 1 1 62 2 1 1 147 Professionals 20 0 1 0 14 0 1 2 38 Technicians and associate professionals 6 0 0 0 3 0 0 0 9 Clerks 80 0 0 0 135 3 1 0 219 Service and sales workers 0 0 0 0 0 0 0 0 0 Skil led ag ri cu lture and fishery workers 0 0 0 0 0 0 0 0 0 Craft and related trades workers 0 0 0 0 0 0 0 0 0 Plant and machine operators and 0 0 0 0 0 0 0 0 0 assemblers Elementary occupations 18 0 0 0 32 0 0 0 50 Total 203 0 2 1 246 5 3 3 463 Employees with disabilities 11 0 0 0 0 0 0 0 11 6.2- Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2012 Male Female Occupational Bands Coloure African Coloured Indian White African Indian White Total d Top Management 11 - 1 1 2 2 - 1 18 119 Limpopo Office of the Premier Annual Report 2012/13 Male Female Occupational Bands Coloure African Coloured Indian White African Indian White Total d Senior Management 21 - - - 20 - 1 - 42 Professionally qualified and experienced 56 - 1 - 46 - 1 2 106 specialists and mid-management ' \ Skilled technical and academically qualified workers, junior management, supervisors, 52 - - - 84 2 1 1 140 foreman and superintendents Semi-skilled and discretionary decision making 43 - - - 63 1 - - 107 Unskilled and defined decision making 18 - - - 32 - - - 50 Total 201 0 2 1 247 5 3 4 463 6.3- Recruitment for the period 1 April 2012 to 31 March 2013 Male Female Occupational Bands African Coloured Indian White African Coloured Indian White Total Top Management - - - - - 1 - - 1 Sen ior Management 2 - - - 2 - - - 4 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 - - - - 2 -- - 2 Unskilled and defined decision making ------TOTAL 2 - - - 4 1 - - 7 120 Limpopo Office of the Premier Annual Report 2012/13 I Employees with disabilities 6 4 - Promotions for the period 1 April 2012 to 31 March 2013 \ J Male Female Occupational Bands African Coloured Indian White African Coloured Indian White Total Top Management - - - - ~. - - - 1 . .1 ~ Senior Management - - - - 2 - - - 2 - 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 - - -- 2 1 - - 3 Employees with disabilities 6.5- Terminations for the period 1 April 2012 to 31 March 2013 Occupational Bands Male Female African Coloured Indian White African Coloured Indian White Total Top Management 2 0 0 0 1 0 0 1 4 Senior Management 1 0 0 0 0 0 0 1 1 Professionally qualified and experienced 1 0 0 0 0 0 0 0 1 specialists and mid-management Skilled technical and academically qualified 2 0 0 0 2 0 0 0 4 workers, junior management, supervisors, foreman and superintendents 121 Limpopo Office of the Premier Annual Report 2012/13 Occupational Bands Male Female African Coloured Indian White African Coloured Indian White Total Semi-skilled and discretionary decision making 3 0 0 0 2 0 ~ 0 0 5 Unskilled and defined decision making 1 0 0 0 1 0 0 0 2 TOTAL 10 0 0 0 6 1 17 Employees with disabilities 0 0 0 0 0 0 0 0 0 6.6- Disciplinary action for the period 1 April 2012 to 31 March 2013 Male Female African Coloured Indian White African Coloured Indian White Total Disciplinary action 15 0 0 01 14 0 0 0 30 4. 7 Skills development This section highlights the efforts of the department with regard to sk ills development. 6.7- Skills development for the period 1 April 2012 to 31 March 2013 Male Female Occupational categories African Coloured Indian White African Coloured Indian White Total Leg islators, senior officials and managers 81 0 0 0 64 0 2 0 147 Professionals 21 0 0 0 17 0 0 0 38 Technicians and associate professionals 6 0 0 0 3 0 0 0 9 Clerks 80 0 0 0 139 0 0 0 219 Service and sales workers 0 0 0 0 0 0 0 0 0 Skilled agricu lture and fishery workers 0 0 0 0 0 0 0 0 0 122 Limpopo Office of the Premier Annual Report 2012/13 Male Female Occupational categories African Coloured Indian White African Coloured Indian White Total Craft and related trades workers 0 0 0 0 0 0 I 0 0 0 Plant and machine operators and 0 0 0 0 0 0 0 0 0 assemblers Elementary occupations 18 0 0 0 0 31 0 0 49 TOTAL 206 0 0 0 223 31 2 0 462 4.8 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, and disability (Table 6.1 ), salary bands (table 6.2) and critical occupations (Table 6.3). TABLE 7. 1 - Performance Rewards by race, gender, and disability, 1 April 2012 to 31 March 2013 Beneficiary Profile Cost Number of Total number of Average cost per % of total within group Cost (R'OOO) beneficiaries employees in group employee African 191 392 49% 0 Male 77 168 45% 305 0 Female 115 223 52% 207 0 Asian 3 3 100% Male 1 1 100% 8 0 Female 2 2 100% 20 0 Coloured - - - - 0 Male - - - - 0 Female 1 4 25% - 0 White 2 3 67% - 0 123 Limpopo Office of the Premier Annual Report 2012/13 Beneficiary Profile Cost Number of Total number of Average cost per % of total within group Cost (R'OOO) beneficiaries employees in group employee Male - - - - - 0 Female 2 3 67% 6 0 Employees with a 1 7 14% 0 disability Total 199 407 49% 546 0 TABLE 7.2- Performance Rewards by salary bands for personnel below Senior Management Service, 1 Apri/2012 to 31 March 2013 Salary Bands Beneficiary Profile Cost Total cost as a % of the Number of Number of %of total within Average cost per Total Cost (R'OOO) total personnel beneficiaries employees salary bands employee expenditure Lower skilled (Levels 1-2) 31 50 62% 21 628.09 697.68 3% Skilled (Levels 3-5) 26 43 60% 23 936.19 1113.48 5% Highly skilled production 72 137 53% 130119.67 2 143.53 2% (Levels 6-8) Highly skilled supervision 70 177 40% 358 715.86 11 476.26 3% (Levels 9-12) Total 199 407 49% 534 399.80 15 430.95 3% TABLE 7.3- Performance Rewards by critical occupations, 1 Apri/2012 to 31 March 2013 Critical Occupations Beneficiary Profile Cost Number of %of total within Average cost per Number of beneficiaries Total Cost (R'OOO) employees occupation employee Information technology 0 0 0 0 0 124 Limpopo Office of the Premier Annua l Report 2012/13 Critical Occupations Beneficiary Profile Cost Number of %of total within Average cost per Number of beneficiaries Total Cost (R'OOO) employees occupation employee TOTAL 0 0 0 0 0 - TABLE 7.4- Performance related rewards (cash bonus), by salary band, for Senior Management Service • • Total cost as a % Total Cost Average cost per of the total Salary Band Beneficiary Profile (R'OOO) employee personnel expenditure Number of Number of %of total within beneficiaries employees band Band A 0 39 90% 0 0 0 Band B 0 14 57% 0 0 0 Band C 0 4 25% 0 0 0 Band D 0 1 0 0 0 0 Total 0 58 0 0 0 0 4. 9 Foreign workers The tables below summarise the employment of foreign nationals in the department in terms of salary bands and by major occupation. The tables also summarise changes in the total number of foreign workers in each salary band and by each major occupation . TABLE 8. 1 - Foreign Workers, 1 April 2012 to 31 March 2013 by salary band 1 April 2012 31 March 2013 Change Salary Band Number %of total Number %of total Number %change Lower skilled (Levels 1-2) 0 0 0 0 0 0 Skilled (Levels 3-5) 0 0 0 0 0 0 Highly skilled production (Levels 6-8) 0 0 0 0 0 0 125 Limpopo Office of the Premier Annual Report 2012/13 1 April 2012 31 March 2013 Change Salary Band Number %of total Number %of total Number %change Highly skilled supervision (Levels 9-12) 0 0 0 0 0 0 Senior management (Levels 13-16) 0 0 0 0 0 0 Total 0 0 0 0 0 0 TABLE 8.2- Foreign Worker, 1 Apri/2012 to 31 March 2013, by major occupation 1 April 2012 31 March 2013 Change Major Occupation Number %of total Number %of total Number % change Contract ICT SMS 0 0 0 0 0 0 Total 0 0 0 0 0 0 Leave utilisation for the period 1 January 2012 to 31 December 2012 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 (Table 9.1) and disability leave (Table 9.2). In both cases, the estimated cost of the leave is also provided . TABLE 9. 1 - Sick leave, 1 January 2012 to 31 December 2012 Number of %of Total Total number %Days with Average Total Employees Employees Estimated of Employees Salary Band Medical Days per Days using Sick using Sick Cost (R'OOO) using Sick Certification Employee Leave Leave Leave Lower skilled (Levels 1-2) 151 88.1 27 7.9 6 35 341 Skilled (Levels 3-5) 268 82.5 37 10.9 7 93 341 Highly skilled production (Levels 6-8) 723 81 .6 94 27.6 8 505 341 Highly skilled supervision (Levels9-12) 834 81.1 119 34 .9 7 1,211 341 Senior management (Levels 13-16) 244 79.5 48 14.1 5 781 34 1 TOTAL 2220 85.0 325 32.0 33 2625 341 126 Limpopo Office of the Premier Annual Report 2012/13 TABLE 9.2- Disability leave (temporary and permanent), 1 January 2012 to 31 December 2012 Number of %of total %days with Employees employees Total days Average days Estimated Cost Salary Band medical using using taken per employee certification disability disability (R'OOO) leave leave Lower skilled (Levels 1-2) Skilled (Levels 3-5) 2 100 1 9.1 2 ~· 1 .; Hiqhlv skilled production (Levels 6-8) 156 100 7 63.6 22 115 .-- ""- Highly skilled supervision (Levels 9-12) 29 100 2 18.2 15 ' 38 . ,-·~ Senior management (Levels 13-16) 4 100 1 9.1 :: 4 12 ' Total 191 100 11 100 17 166 Table 9.3 summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service. TABLE 9.3- Annual Leave, 1 January 2012 to 31 December 2012 Salary Bands Total days taken Average per employee Lower skilled (Levels 1-2) 773 21 Skilled Levels 3-5) 1214 22 Hiqhly skilled production (Levels 6-8) 3087 22 Hiqhlv skilled supervision(Levels 9-12) 4155 24 Senior management (Levels 13-16) 1628 22 Total 10857 21 TABLE 9.4 - Capped leave, 1 January 2012 to 31 December 2012 Average capped leave per Average number of days Salary Bands Total days of capped leave taken employee as at 31 December taken per employee 2011 Lower skilled (Levels 1-2) Skilled Levels 3-5) 1 1 87 Highly skilled production (Levels 6-8) 6 6 89 Hiqhly skilled supervision(Levels 9-12) Senior management (Levels 13-16) 4 4 92 127 Limpopo Office of the Premier Annu al Report 2012/13 Average capped leave per Average number of days Salary Bands Total days of capped leave taken employee as at 31 December taken per employee 2011 - Total 11 4 - 89 TABL E 9.5 - Leave payouts for the period 1 Apri/2012 to 31 March 2013 The following table summarises payments made to employees as a result of leave that was not taken. Number of Average payment per REASON Total Amount (R'OOO) Employees employee Leave payout for 2012/13 due to non-utilisation of leave for the previous cycle 00 00 00 Capped leave payouts on termination of service for 2012/13 564 148 08 80 234 Current leave payout on termination of service for 2012/13 237 065 15 15 123 TOTAL 801 213 23 95 57 4.1 0 HIV and AIDS & health promotion programmes TABLE 10.1- Steps taken to reduce the risk of occupational exposure Units/categories of employees identified to be at high risk of contracting Key steps taken to reduce the risk HIV & related diseases (if any) Communications Medical screening sessions incl uding HCT, and Awareness campaigns Protocol Medical screening sessions includ ing HCT, Physical wellness TABLE 10.2 - Details of Health Promotion and HIVand AIDS Programmes (tick the applicable boxes and provide the required information) Question Yes No Details, if yes 1. Has the department designated a member of the SMS to implement ,/ The department has an SMS member who is implementing the the provisions contained in Part VI E of Chapter 1 of the Public Service provisions contained in Part VI E of Chapter 1 of the Publ ic Service Regulations, 2001? If so, provide her/his name and position. Regulations, 2001. The SMS Member is Mr. BJ Nake Senior Manager: PMS, HRD, LR & EHWP 128 Limpopo Office of the Premier Annual Report 2012/13 Question Yes No Details, if yes 2. Does the department have a dedicated unit or has it designated ./ The department has an Employee Health and Wellness Sub-Division specific staff members to promote the health and well being of your which has a Manager and two (2) Employee Health and Wellness employees? If so, indicate the number of employees who are involved in Programme Co-ordinators. this task and the annual budget that is available for this purpose. 3. Has the department introduced an Employee Assistance or Health ./ The department has an Employee Assistance Programme and Health Promotion Programme for your employees? If so, indicate the key Promotion Programme for employees. The key services of the elements/services of this Programme. Employee Assistance and Health Programme include: • assessment & referral; • life skills education; • short-term intervention; • after-care; • health awareness sessions; condom distribution; • medical screening; provision and promotion of Voluntary Counselling Testing and promoting participation in sports . 4. Has the department established (a) committee(s) as contemplated in ./ The department has established the HIV Aids Committee as Part VI E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If stipulated in Part VI E.5 (e) of Chapter 1 of the Public Service so, please provide the names of the members of the committee and the Regulations, 2001 stakeholder( s) that they represent. 5. Has the department reviewed its employment policies and practices to ./ The department has a section on the HIV and AIDS Programme in ensure that these do not unfairly discriminate against employees on the the Departmental Human Resource Policy. Key elements include basis of their HIV status? If so, list the employment policies/practices so principles that promote equality and non-discrimination between reviewed. employees with HIV and those without and a clause that stipulates that employees with HIV may not be unfairly discriminated against in the allocation of employee benefits . 6. Has the department introduced measures to protect HIV-positive ./ The department has a section on the HIV and AIDS Programme in employees or those perceived to be HIV-positive from discrimination? If the Departmental Human Resource Policy. Key elements include so, list the key elements of these measures. principles that promote equality and non-discrimination between employees with HIV and those without and a clause that stipulates that employees with HIV may not be unfairly discriminated against in the allocation of employee benefits. 129 Limpopo Office of the Premier Annual Repo rt 2012/13 Question Yes No Details, if yes 7. Does the department encourage its employees to undergo Voluntary ./ The department does encourage employees to undergo HIV Counselling and Testing? If so, list the results that you have you Counselling and Testing. A total of 147 employees participated in HIV achieved. Counselling and Testing. 8. Has the department developed measures/indicators to monitor & ./ The department has developed measures and indicators to monitor & evaluate the impact of its health promotion programme? If so, list these evaluate the impact of its health promotion programme: measures/indicators. • Level of utilisation of the programme per quarter as compared to number of employees; • Reports from partners after each Well ness Day • The attendance Registers of different sporting codes . 4.11 Labour relations The following collective agreements were entered into with trade unions within the department. TABLE 11.1- Collective agreements, 1 April 2012 to 31 March 2013 Subject Matter Date N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A If there were no agreements, then use the following table Total collective agreements None The following table summarises the outcome of disciplinary hearings conducted within the department for the year under review. 130 Limpopo Office of the Prem ier Ann ua l Report 2012/13 TABLE 11.2- Misconduct and disciplinary hearings finalised, 1 April 201 2 to 31 March 2013 Outcomes of disciplinary hearings Number %of total Correctional counselling 0 - 0 I .,.. - '" l Verbal warning 0 0 I Written warning 1 5% Final written warning 7 I 35% Suspended without pay 2 10% Fine 0 0 '· Demotion 0 0 Dismissal 0 0 Not guilty 3 15% Case withdrawn 7 35% Total 20 100% ' TABLE 11.3- Types of misconduct addressed at disciplinary hearings Type of misconduct Number %of total Loss/theft of laptop from office 6 20% Failure to comply with leave regulations 2 7% Violation of ICT policy 1 3% irregular awarding of a tender to renovate 1 3% breach of security regulations 1 3% Remunerative work outside employment 3 10% Failure to submit annual performance agreements 7 23% Non- authority of appointing an acting Officer 1 3% Damage to government owned vehicle and transporting of unauthorized passengers 1 3% Procurement of services without authorization 1 3% Negligence 5 17% Damage to government vehicle 1 3% Displayed disrespect to others 0 0 131 Limpopo Office of the Premier Annual Report 2012/13 Type of misconduct Number %of total Theft of Tribal monies ~" 0 ,I 0 ·~ 1 ~ Negngently causes loss to state property 0 \, I ~~~· -- 0 Total 30 100% TABLE 11.4 - Gnevances lodged for the penod 1 Apnl2012 to 31 March 2013 Number %of Total Number of grievances resolved 31 89% Number of Qrievances not resolved 4 11% Total number of grievances lodged 35 .' 100% TABLE 11.5- Disputes lodged w1th Councils for the penod 1 Apnl2012 to 31 March 2013 Number %of Total Number of disputes upheld 0 0 Number of disputes dismissed 2 100% Total number of disputes lodged 2 100% ~ TABLE 11.6- Stnke act1ons for the penod 1 Apnl2012 to 31 March 2013 Total number of person working days lost 1 Total cost (R'OOO) of working days lost R12 179,26 Amount (R'OOO) recovered as a result of no work no pay R12 179,26 TABLE 11.7- Precautionary suspensions for the period 1 Apri/2012 to 31 March 2013 Number of people suspended 0 Number of people whose suspension exceeded 30 days 0 Average number of days suspended 0 Cost (R'OOO) of suspensions 0 132 Limpopo Office of the Premier Annual Report 2012/13 4.12 Skills development This section highlights the efforts of the department with regard to skills development. 12 1 - Training needs identified 1 April 2012 to 31 March 2013 ) .---...----. I r, /.1 j - -· No. 0 Occupational Categories Gender 0 Skills Programmes & Other forms of Total other short courses training Legislators, senior officials and managers Female 17 0 T 63 0 63 ' ~ Male 21 1 0 60 0 60 -- Professionals Female 3 0 i ~ 3 - 0 .['"''""- 3 Male 6 0 3 0 3 Technicians and associate professionals Female 6 0 6 Male 5 0 5 Clerks Female 139 0 45 0 45 Male 80 0 18 0 18 Service and sales workers Female 0 0 "• 0 0 0 Male 0 0 0 0 0 Skilled agriculture and fishery workers Female 0 0 0 0 0 Male 0 0 0 0 ~ . •..J •.. 0 Craft and related trades workers Female 0 0 0 0 0 Male 0 0 0 0 0 Plant and machine operators and assemblers Female 0 0 0 0 0 Male 0 0 0 0 0 Elementary occupations Female 32 0 12 0 12 Male 18 0 03 0 03 Total 463 218 0 218 133 Limpopo Office of the Premier Annual Report 2012/13 12.2- Training provided 1 April 2012 to 31 March 2013 Training provided within the reporting period Number of Skills Programmes Occupational Categories Gender employees as Other forms of Learnership & other short Total at 1 April 2011 training courses Legislators, senior officials and Female 66 0 34 0 34 managers Male 81 0 28 0 28 ,, - 17 0 I 3 3 Professionals Female ~~ 0 Male 21 0 1 0 1 Technicians and associate Female 3 0 4 0 4 professionals Male 6 0 7 0 7 Clerks Female 139 0 18 0 18 Male 80 0 11 0 11 Service and sales workers Female 0 0 0 0 0 Male 0 0 0 0 0 Skilled agriculture and fishery Female 0 0 0 0 0 workers Male 0 0 0 0 0 Craft and related trades Female 0 0 0 0 0 workers Male 0 0 0 0 0 Plant and machine operators Female 0 0 0 0 0 and assemblers Male 0 0 0 0 0 Elementary occupations Female 32 0 0 0 0 Male 18 0 0 0 0 SUB TOTAL FEMALE 463 0 59 0 59 134 Limpopo Office of the Premier Annua l Repo rt 2012/13 4.131NJURY ON DUTY The following tables provide basic information on injury on duty. TABLE 13.1 -Injury on duty, 1 Apri/2012 to 31 March 2013 ~ Nature of injury on duty Number %of total Required basic medical attention on ly 1 I 0.08 '- I ~ I ' .'....-""-. Temporary Total Disablement 4 - 0.33 -- . ' ·- 1-:--' Permanent Disablement 0 ' 0 ' Fatal 0 0 - 4.14 Utilisation of consultants Table 14.1- Report on consultant appointments using appropriated funds Total number of consultants that Duration: Contract value in Project Title worked on the project Work days Rand Service provider to conduct a study on 0 0 0 Investment opportunities in Limpopo Mining Industry Provincial Annual Performance Report 0 0 0 (2008/09) Premier's Hotline 0 0 0 Total number of projects 0 0 0 0 135 Limpopo Office of the Premier Annual Report 2012/13 Table 14.2 - Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDis) Percentage ownership by HOI Percentage management Number of Consultants from HOI groups Project Title groups by HOI groups that work on the project Premier's Hotline Table 14.3 - Report on consultant appointments using Donor funds 6 Total Number of consultants that Duration: Project Title Donor and Contract value in Rand worked on the project Work days None 0 0 0 Total number of projects 7 .. Table 14.4 - Analysts of consultant appomtments usmg Donor funds, m terms of Htstortcal/y Dtsadvantaged lndtvtduals (HDis) Project Title Percentage ownership by Percentage Number of Consultants from HOI groups HOI groups management by HOI that work on the project groups None 6 All consultants were appointed and contra cted by GIZ on t he Office's beha lf. 136 Limpopo Office of the Premier Annual Report 2012/13 5. OTHER INFORMATION 5.1 Acronyms AIDS Acquired Immune Deficiency Syndrome Do A Department of Agriculture AG Auditor - General ECM Enterprise Content Management APP Annual Performance Plan EE Employment Equity ABET Adult Basic Education and Training EHWP Employee Health and Wellness Programme APRM African Peer Review Mech anism EXCO Executive Council BEE Black Economic Empowerment G&A Government and Administration BBBEE Broad Based Black Economic Empowerm ent GIS Geographic Information System COGHSTA Cooperative Governance, Human Settlements and GITO Government Information Technology Officer traditional affairs HOD Head of Department CSI Centre for Scientific Innovation HIV Human Immunodeficiency Virus CBO Community Based Organisations HR Human Resource COW Community Development Workers HOI Historically Disadvantaged Individuals DPSA Department of Public Service and Admin istration HRD Human Resource Development DEDET Department of Economic Development, IIA Institute of Internal Auditors Environment and Tourism 137 Limpopo Office of the Premier Annual Report 2012/13 IT Information Technology OTP Office of the Premier IDP Integrated Development Plan PACT Premier's Advisory Council on Technology and Innovation I SAD Information Society and Development PC Personal Computer ICT Information and Communication Technology P-IGF Premier's Inter-Government Forum KPA Key Performance Area ppp Public Private Partnership LAN Local Area Network PFMA Public Finance Management Act LEGDP Limpopo Employment Growth and Development Plan PHRDS Provincial Human Resource Development Strategy MEC Member of Executive Council PSC Public Service Commission MISS Minimum Information Security Standards PMG Pay Master General M&E Monitoring and Evaluation PPPFA Preferential Procurement Policy Framework Act MOU Memorandum of Understanding PABX Private Automatic Branch Exchange MTEF Medium Term Expenditure Framework PGITO Provincial Government Information Technology MTSF Medium Term Strategic Framework Office NMIR National Minimum Information Requirements PMOS Performance Management and Development System NHRD National Human Resource Development SBU Strategic Business Unit NSDP National Spatial Development Perspective SMME Small Medium and Micro Enterprise ODA Organisational Development Agency 138 Limpopo Office of the Premier Annua l Report 2012/13 SMS Senior Management Services SONA State of the Nation Address SIT A State Information Technology Agency SOPA State of the Province Address SLA Service Level Agreement WAN Wide Area Network SISP Strategic Information System Plan 139 PREMIER'S HOTLINE 0800 864 729 Mowaneng Building, 40 Hans van Rensburg Street Polokwane 0699, Private Bag X8493 Polokwane 0700 Tel: 015-287 6000 Fax: 015-287 4462 Website:www.limpopo.gov.za ISBN:978-0-621-40240-7 PR 207/2011 OT56106 REVIEW PRINTERS TEL: 015 292 0627/8