PART A CONTENTSGENERAL INFORMATION
PART A: GENERAL INFORMATION...... 4
1. DEPARTMENT GENERAL INFORMATION...... 5
2. LIST OF ABBREVIATIONS/ACRONYMS...... 6
3. FOREWORD BY THE MEC...... 9
4. REPORT OF THE ACCOUNTING OFFICER...... 11
5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT...... 21
6. STRATEGIC OVERVIEW...... 22
6.1 VISION...... 22
6.2 MISSION...... 22
6.3 VALUES...... 22
7. LEGISLATIVE AND OTHER MANDATES...... 23
8. ORGANISATIONAL STRUCTURE...... 30
9. ENTITIES REPORTING TO MEC...... 30 PART B: PERFORMANCE INFORMATION...... 32
1. AUDITOR-GENERAL’S REPORT: PREDETERMINED OBJECTIVES...... 33
2. OVERVIEW OF DEPARTMENTAL PERFORMANCE...... 33
2.1 SERVICE DELIVERY ENVIRONMENT...... 33
2.2 SERVICE DELIVERY IMPROVEMENT PLAN...... 33
2.3 KEY POLICY DEVELOPMENTS AND LEGISLATIVE CHANGES...... 34
3. STRATEGIC OUTCOME ORIENTED GOALS...... 35
4. PERFORMANCE INFORMATION BY PROGRAMME...... 36
4.1 PROGRAMME 1: ADMINISTRATION...... 36
4.2 PROGRAMME 2: PUBLIC WORKS...... 40
4.3 PROGRAMME 3: EXPANDED PUBLIC WORKS PROGRAMME...... 53
5. TRANSFER PAYMENTS...... 56
6. CONDITIONAL GRANTS...... 56
6.1. CONDITIONAL GRANTS AND EARMARKED FUNDS PAID...... 56
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
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GENERAL INFORMATION GENERAL INFORMATION
6.2. CONDITIONAL GRANTS AND EARMARKED FUNDS RECEIVED...... 56 7. DONOR FUNDS...... 56 General 7.1. DONOR FUNDS RECEIVED...... 56
8. CAPITAL INVESTMENT...... 57 Information
8.1. CAPITAL INVESTMENT, MAINTENANCE AND ASSET MANAGEMENT PLAN...... 57 PART C: GOVERNANCE...... 59
1. INTRODUCTION...... 60
2. RISK MANAGEMENT...... 60
3. FRAUD AND CORRUPTION...... 60
4. MINIMISING CONFLICT OF INTEREST...... 60
5. CODE OF CONDUCT...... 60
6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES...... 60
7. PORTFOLIO COMMITTEES...... 61
8. SCOPA RESOLUTIONS...... 64
9. PRIOR MODIFICATIONS TO AUDIT REPORTS...... 71
10. INTERNAL CONTROL UNIT...... 71
11. INTERNAL AUDIT AND AUDIT COMMITTEES...... 72
12. AUDIT COMMITTEE REPORT...... 72
13. B-BBEE COMPLIANCE PERFORMANCE INFORMATION...... 78 PART D: HUMAN RESOURCE MANAGEMENT...... 80
1. INTRODUCTION...... 81
2. OVERVIEW OF HUMAN RESOURCES...... 81
3. HUMAN RESOURCES OVERSIGHT STATISTICS...... 81
PART E: FINANCIAL INFORMATION...... 107
1. REPORT OF THE AUDITOR-GENERAL...... 108 2. ANNUAL FINANCIAL STATEMENTS...... 114
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
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General Information
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PARTANNUAL A:B:C:D: GENERALPERFORMANCEGOVERNANCEHUMAN FINANCIAL RESOURCE INFORMATION STATEMENTS INFORMATION MANAGEMENT General Information
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1. DEPARTMENT GENERAL INFORMATION General PHYSICAL ADDRESS: Department of Infrastructure Development
Information The Corner House
Cnr. Commissioner and Pixley ka Isaka Seme Streets
Marshalltown
2107
POSTAL ADDRESS: Private Bag X 83
Marshalltown
2107
TELEPHONE NUMBER/S: 011 355 5000
EMAIL ADDRESS: www.gautengonline.gov.za
WEBSITE ADDRESS: www.gauteng.gov.za
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
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2. LIST OF ABBREVIATIONS/ACRONYMS
AGSA...... Auditor-General of South Africa
AO...... Accounting Officer
APP...... Annual Performance Plan
BBBEE...... Broad-Based Black Economic Empowerment
BN...... Briefing Note
BoL...... Bank of Lisbon
C-AMP...... Custodian-Asset Management Plan
CAPEX...... Capital Expenditure
CBD...... Central Business District
CDC...... Community Day Clinic
CE...... Compensation Event
CFO ...... Chief Financial Officer
CHBAH...... Chris Hani Baragwanath Academic Hospital
CHC...... Community Health Centre
CIDB...... Construction Industry Development Board
CRSA ...... Control Risk Self-Assessment
CYCC...... Child Youth Care Centre
DHET...... Department of Higher Education and Training
DID ...... Department of Infrastructure Development
DLTC...... Driver’s Licence Testing Centre
DPSA...... Department of Public Service and Administration
ECDC...... Early Childhood Development Centre
EMS...... Emergency Management Services
EPWP...... Expanded Public Works Programme
EXCO ...... Executive Committee
FTEs...... Full-Time Equivalents
HDI...... Historically Disadvantaged Individual
HOD ...... Head of Department
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GIAM...... Government Immovable Asset Management
GIFA...... Gauteng Infrastructure Financing Agency
GPG ...... Gauteng Provincial Government
HVAC...... Heating, Ventilation and Air Conditioning
IAR...... Immovable Asset Register
ICT ...... Information Communication Technology
IDMS ...... Infrastructure Delivery Management System
IGR...... Inter-Governmental Relations
IPC...... Infrastructure Portfolio Committee
IRPS...... Infrastructure Research, Planning System
JMPD...... Johannesburg Metropolitan Police Department
JRA...... Johannesburg Road Agency
KPI...... Key Performance Indicators
KPP...... Kopanong Precinct Project
KPSC...... Kopanong Precinct Steering Committee
LSEN...... Learners with Special Needs
MEC ...... Member of Executive Council
MKSTC...... Moses Kotane Skills Training Centre
MOU...... Memorandum of Understanding
MPAT ...... Management Performance Assessment Tool
MTEF ...... Medium Term Expenditure Framework
MV...... Military Veterans
NEMA...... National Environmental Management Act
NERSA...... National Energy Regulator South Africa
NHI...... National Health Insurance
NYS...... National Youth Service
OHS...... Occupation Health and Safety
PEP...... Project Execution Plan
PEPUDA...... Promotion of Equality and the Prevention of Unfair Discrimination Act
PFMA ...... Public Finance Management Act
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PPE...... Protective and Prevention Equipment
PPP...... Public-Private Partnership
PPPFA...... Preferential Procurement Policy Framework Act
PQR...... Quarterly Performance Report
PRAJA...... Promotion of Administrative Justice
PRC...... Peer Review Committee
PRM...... Project Readiness Matrix
PSP ...... Professional Service Provider
PwD...... People with Disabilities
RoFR...... Right of First Refusal
ROMC...... Risk Operational Management Committee
RFP...... Request for Proposals
RFQ...... Request for Quotation
RSSP...... Rooftop Solar PV Project
SANRAL...... South African National Roads Agency Limited
SCM ...... Supply Chain Management
SDIP ...... Service Delivery Improvement Plan
SIF...... Social Integrated Facility
SLA...... Service Level Agreement
SMS...... Senior Management Service
SMME ...... Small Medium and Micro Enterprise
SITA...... State Information Technology Agency
STARS...... Sports, Transport, Agriculture, Rural Development and Social Development
TA...... Treasury Approval
TER...... Township Economic Revitalisation
TMR...... Transformation Modernisation and Reindustrialisation
TR...... Treasury Regulations
TVET...... Technical Vocational Education and Training
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The upscale of infrastructure where Gauteng 3. FOREWORD BY THE makes borders with sister provinces also received MEC more emphasis as part of building sustainable communities by facilitating universal access to socio-economic services. In this regard, we, as the Gauteng City Region, engaged the provinces of Free State, Limpopo, Mpumalanga and the North West on how to collectively upscale public facilities which serve communities on either side of the demarcation lines.
The beginning of the sixth administration, in line with government’s commitment to accelerate service delivery, also introduced an era of more active governance where all Members of the Executive Council (MECs) spend most of their time at service delivery points than in the office. To this end, myself as the MEC together with Management visited more than 30 construction projects sites, across the five development corridors of Gauteng, during the first six months of assuming department leadership. Boots and overalls have now become corporate gear.
The project site visits were aimed at monitoring progress on, intervening timeously where challenges emerge and unlocking attendant bottlenecks in the project delivery value chain so that we may fulfill the commitment we have made to our client departments who render social services in communities. However, there were The 2019/2020 financial year has laid a firm also challenges in the project environment which foundation for attainment of the strategic goals set needed stakeholder intervention due to their for the sixth administration in which infrastructure negative impact on the completion of our projects. development is prioritised as a means of creating These challenges included stoppages by interest Growing jobs and strengthening the economy in groups in communities. The law enforcement Gauteng Together towards 2030. agencies were accordingly alerted so that we may The financial year coincided with Premier David ensure the rule of law. Makhura’s clarion call for infrastructure investment During the period under review we engaged with to serve as a tool of reviving depressed economics the broadest section of our stakeholder base to in the outermost parts of the province, such as ensure community ownership of the 2019 to 2024 Merafong, Emfuleni and Rand West municipalities. Infrastructure Development Programme, based on To this end, the construction of state-of-the-art their needs. The infrastructure intergovernmental clinics and a library in Merafong, and a multi- forums became strategic platforms for purpose community centre in Bekkersdaal, Rand harmonisation of spatial and infrastructure West, served as a response to the clarion call. development programmes at local, provincial and national level so that we may collectively deliver quality infrastructure in communities.
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We also engaged regulators in our sector where including but not limited to: we called for integration of their work into • The successful completion of 13 education a unified service, in support of faster service infrastructure projects, including delivery, instead of working in silos. Furthermore, Noordgesig Primary School and designs of the annual gathering of the Council for the Built 18 new projects which included Reiger Park Environment (CBE) also enabled us to reflect on Primary School, Mohlodi Primary School, progress made in transforming the sector to create Conamore Primary School and Rant en Dal more opportunities for historically disadvantaged LSEN School. However, these four were communities, especially women, youth and people not part of the performance information with disabilities. audited in the current financial year. We further engaged with various formations • The completion of Kokosi Library in representing emerging enterprises where Merafong and Atteridgeville Library in we reaffirmed government’s commitment to Tshwane. strengthen the partnership and social compact to • A percentage total of 75.6% procurement create jobs and empower all our communities. We from Small, Medium and Micro Enterprises also engaged with institutions of higher learning (SMMEs) against a set target of 35%. and research institutes regarding cutting-edge • The creation of 5 757 Expanded infrastructure solutions, including alternative Public Works Programme (EPWP) work construction methods and funding models for our opportunities against a target of 5 500 for massive public infrastructure build programme. the year. Thus, Public-Private Partnerships (PPPs) emerged • The verification of 7 033 immovable assets as a key intervention, especially on precinct models against a target of 7 000. of construction such as Kopanong Government Precinct. Indeed, the infrastructure sector has a lot • The completion of all statutory, condition based, preventative and regular of potential to bolster socioeconomic growth and maintenance projects for Education, Health development. and Sports, Transport, Agriculture, Rural The work done during 2019/2020 was founded on Development and Social Development our new vision and strategy of being “the trusted (STARS) infrastructure, within budget. provider of integrated and smart public infrastructure I would also like to express my gratitude to all and property management solutions that transform our stakeholders, including the Infrastructure the spatial landscape and improve the quality of Development and Property Management life of the citizens of Gauteng.” To this end, our Portfolio Committee, led by the Chairperson Mr. delivery capabilities, driven by our leadership team, Mpho Modise, for their earnest engagement and a core of 99 registered professionals and more and forthrightness regarding the work of the than 1 500 technical personnel, supported by our department. I remain confident that a lot more will capable administrative, monitoring and evaluation be achieved in the following financial year. personnel have enabled us to record achievements,
I thank you.
Ms. Tasneem Motara MEC of the Department of Infrastructure Development and Property Management 30 July 2020
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Improving human resources capability, focusing 4. REPORT OF THE mainly on technical and professional capacity of ACCOUNTING the Department has been one of the key priorities. In terms of technical capacity, the Department now OFFICER has 99 registered built environmental professionals and close to 1 590 technical staff in total; a number 4.1 Overview of the operations of the that is better than, or comparable some of the best Department infrastructure delivery organisations in the country. The Department further embarked on its process of reviewing the existing organizational structure in accordance with a directive from the Department of Public Service and Administration (DPSA), which requires all the government departments to review their organisational structure every five years. The organisational structure is at advance stage after a number of roadshows with the entire staff to ensure that the process is finalised in the new financial year.
To this effect, the Department has put an effort in place to strengthen the capacity in the financial management and control environment for reducing irregular expenditure incurred. The Department has a checklist in place that assists in identifying any shortfall that may arise in the procurement of the required services and goods. This has assisted in provisioning of early warning if such a case arose. Over and above that, identified irregular expenditure is reported to the relevant stakeholders in line with the requirements of the Treasury Regulations. The policy and procedures are in place for identification and prevent of irregular expenditure.
The 2019/20 financial year has been both an The Department remains committed to maintaining exciting and challenging year, not just for the standards of good governance thereby ensuring Department but the country as a whole. It has been the attainment of clean administration by 2020/21. a year which coincides with the new term of the Public works infrastructure delivery sixth administration and a year which government reflected on its achievements and challenges in The Department has ensured that it delivers on the implementation of the programmes aimed its key mandate of delivering social infrastructure at ensuring sustainable economic development. projects on behalf of client departments. The The performance data presented in this report Department did its best to improve communication is an expression of astute planning, rigorous with client departments through Lutsinga monitoring and evaluation, as well as demonstrable Infrastructure House so that the citizens of the implementation of our mandate. The achievements Province can ultimately benefit. The Department of the Department, as summarised in the Annual experienced major challenges with the completion Report, reflects delivery of services.Administration of projects within deadlines and budget, which and support were caused by poor performing contractors.
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Despite the challenges, the Department managed Construction of De Wagensdrift Clinic was to complete the following 13 infrastructure projects completed. This project is a state-of-the-art, five- for the Department of Education: star clinic which is modern and advanced. The clinic • Construction of Noordgesig which can is fitted with green initiatives such as roof insulation accommodate 1 800 learners from Grades that reduces energy loss from the building, glazing R to 7. The facility of the school includes that maximises natural light into the building. It a computer room, science laboratory, also has energy saving lighting (LED lighting), heat printing room, nutrition centre and pumps for water heating, rainwater harvesting and multipurpose centre. indigenous landscaping, amongst others.
• Restorative repairs completed at Nkumbulo Completed upgrades and renovations of psychiatric Secondary in Kwa-Thema. wards in Charlotte Maxeke Academic Hospital and • Renovations and rehabilitations has been Helen Joseph Psychiatric Hospital. completed at Aurora Girls High School, Springs Secondary School, Westbury In terms of maintenance, the Department Secondary School, Laerskool Vaal Riviere, conducted condition assessments on facilities George Mbilase Primary School, Amos under its custodianship as part of the process of Maphanga Secondary School and Ivory developing the immovable asset register. This Park Primary School. process has assisted the Department in identifying • Demolition of an existing structure at those facilities that require various forms of Katorus College and construction of a maintenance work to perform at minimum boundary wall at Laerskool Klipdrift has acceptable levels and will form the core of the been finalised. Department’s planned preventative maintenance.
• Erection of palisade fencing at Magasela Bank of Lisbon building Primary School and Lebogang Primary School has been completed. The Department has the responsibility of managing government facilities in the Province, which as a For the Department of Sports, Arts Culture and result involves identifying facilities which are not Recreation, the Department completed three safe for occupation. The Department is tasked infrastructure projects: with mandate to ensure that all Gauteng Provincial • The new Operation Mabaleng Sports Government (GPG) buildings comply with Complex situated in Westbury, Occupational Health and Safety (OHS) standards. Johannesburg. In the wake of the unfortunate fatal fire that broke out at the Bank of Lisbon (BoL) building • The new Atteridgeville Community Library in September 2018, the Department conducted which is situated in Atteridgeville, Tshwane. The library size is about 1200 square metres detailed condition assessments at all GPG to service the residents of Atteridgeville. buildings. As a result, the assessment conducted by the inspectors discovered that the fire had caused • The new Kokosi Community Library in severe damage to the slabs of the burnt floors and Foschville. was subsequently a structural hazard. Therefore, a In addition, the Department completed the 30 decision was taken that the BoL building should be Simmonds Street Fire Rehabilitation Project by demolished. Jet Demolition was appointed as the the end of April 2019. This project has started service provider in December 2018 to conduct the in the previous financial years and subsequently controlled demolition of the building to mitigate completed during the current reporting period. structural risks using the implosion method. The implosion of the BoL was successfully conducted For the Department of Health, the Department on 24 November 2019 in a collaborative effort with completed three infrastructure projects: the City of Joburg Emergency Management Services
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(EMS), the Johannesburg Road Agency (JRA), the A total of 21 portions of Farm Ekangala, owned by Johannesburg Metropolitan Police Department the GPG, have been transferred, through Section (JMPD) and various disaster management entities. 42 of the Public Finance Management Act, 1999 (Act No. 1 of 1999, as amended) to the Gauteng The implosion of the former BoL building forms Department of Human Settlements for township part of DID’s strategy towards the creation of establishment purposes. GPG-owned land in the Kopanong Precinct, which will house all GPG Doornkloof – City of Tshwane, has been presented departments within a designated area therein and recommended for donation to the South lowering the cost of rental accommodation African National Roads Agency Limited (SANRAL) through the creation of a permanent and more by the Immovable Asset Disposal Committee, accessible GPG precinct. for a road reserve. Agreements of Donation for Facilities management two agricultural holdings (Grootvalley) has been prepared and forwarded to the Legal Services The Department continues to conduct routine Directorate, for scrutiny to enable donation to maintenance, soft services and the execution Trans-Caledon Tunnel Authority (on behalf of the of maintenance projects in and around the Department of Water and Sanitation) for water- Precinct and carries out maintenance for G-Fleet, related services. For the 2019/20 financial year, the Department of Community Safety and the Department managed to inspect a total of 72 the Department of Social Development. The properties across the Province. methodology for maintaining buildings is based on classifying work into mechanical, electrical, Expanded Public Works Programme building services and soft services. For the 2019/20 Despite the limited financial resources allocated, financial year, the Department managed to perform the Department has been able to make a maintenance of lifts in all precinct buildings, meaningful contribution in changing the lives heating, ventilation and air conditioning (HVAC) of people through the Zivuseni and the National and electrical maintenance were done in buildings. Youth Services (NYS) programmes. Through the A contractor was appointed to assess fire systems, implementation of EPWP and other initiatives, cleaning and hygiene services were carried out in the Department managed to provide work precinct buildings. In relation to client departments, opportunities to more than 5 700 beneficiaries who power failures and major plumbing defects were were working for the Department and other sister attended to and restored in Bedfordview (G-Fleet), departments. These work opportunities ensured while waiting for materials to address OHS non- that poor families are able to put food on the table. compliances in other facilities. Some of the beneficiaries were trained in different Immovable asset management skills development so that when they exit the programme, they must be employable. However, During the year under review, the Department made due to budget constraints not all beneficiaries were significant strides in pursuance of its mandate as trained. per the provision of Government Immovable Assets Management Act, 2007 (GIAMA, Act No. 19 of During the 2019/20 financial year, the targets 2007) and in line with the EXCO resolution for the has been set to create work opportunities across Department to be a nerve centre of infrastructure all sectors which is the public bodies including delivery in the Province. Therefore, the Department departments and municipalities. All public bodies has managed to ensure that all immovable assets have been reporting work opportunities created in the Asset Register are complete, recorded on the EPWP reporting system and more than 55 accurately and disclosed in correct values. The areas 000 work opportunities were created by the public that are normally verified and updated include bodies. The implementation of EPWP Phase IV for deeds ownership information, user departments the next five years (2019 until 2024) has started and vesting category changes. with the objective to provide work opportunities
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and income support to poor and unemployed people, using labour-intensive methods in the delivery of public and community assets and services, thereby contributing to development. Overview of the financial results of the Department
Departmental receipts
2018/2019 2019/2020
Departmental receipts Estimate Actual (Over)/under Estimate Actual Over/ collection (under) amount amount collection collected collected
R’000 R’000 R’000 R’000 R’000 R’000
Sale of goods and services other 24 895 15 923 (8 972) 26 289 14 683 (11 606) than capital assets Transfers received ------Fines, penalties and forfeits - - - - 1 1 Interest, dividends and rent on land - 62 62 - 49 49 Sale of capital assets - 1 391 1 391 - 1,038 1038 Financial transactions in assets and 655 1 054 399 692 3 556 2 864 liabilities
Total 25 550 18 430 (7 120) 26 981 19 327 (7 654)
The above table discloses an estimate of R27 million with of revenue collectable for the year 2019/20. By end of the financial year only R19, 3 million was collected. This implies collection of 72% of the overall projected revenue. The Department had plans of selling a number of non-core residential properties as per EXCO approval. The process of which has proven to yield very little positive outcomes. Despite the delays in property sales, the Department managed to collect R14,683 million on sales of goods and services item. Commercial properties collected R8, 432 million for the year, whereas residential properties collected R1,448 million. Sales of tender documents amounted to R26 000.00. Included in the R14,6 million is an amount of R1,038 million for sales of scrap material.
The leasing out of 75 commercial properties has a potential of bringing at least R23 million per annum but due to non- payment and expired contracts, the Department is unable to collect what is due. On average the Department collected R700k per month on commercial properties and an average of R121 000.00 on residential properties.
Programme expenditure
2018/2019 2019/2020
Programme name Final Actual (Over)/ under Final Actual (Over)/under appropriation expenditure expenditure appropriation expenditure expenditure R’000 R’000 R’000 R’000 R’000 R’000
Administration 334 578 334 162 416 359 631 351 370 8 261 Public Works Infrastructure 2 405 042 2 401 751 3 291 2 755 442 2,722,784 32 658
Expanded Public Works 297 344 284 980 12 364 309 913 268 819 41 094 Programme Total 3 036 964 3 020 893 16 071 3 424 986 3 342 973 82 013
The above table provides an analysis of the Departmental expenditure performance per programme. For the year ended 31 March 2020, the Department was allocated with a budget of R3, 425 billion and spent 98%
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of this allocation. Out of the R82 million underspent, R21 million related to invoices of projects which the Department will continue to implement as per project plan in the next financial year. This amount of money has been requested to be rolled-over in line with the prescripts of the PFMA (1999, as amended).
The average expenditure of the Department in terms of monthly costs amounts to R278,6 million. In comparison to the previous 2018/19 financial year, the budget increased with 11% from R3,036 billion to R3,425 billion. The 11% increase is made up of 6,5 % for the Compensation of Employees budget in terms of inflationary adjustments. Another aspect related to the increase for funding on the estimate of capital expenditure for the demolishing of BoL building which accounted for 0,5 % of the increase. In addition to the budget increase was an allocation for payment of rates and taxes which accounted for 4,8%.
Programme 1 - Administration was allocated with R359 million budget, an increase of 7 % from the previous year’s allocation of R334 million. This budget was spent at 98% and resulted in a 2% budget under- expenditure. The effective implementation of cost containment measures resulted in savings on expenditure items such as advertising and consumable supplies. In the same programme there has been an increase in expenditure relating to legal fees – and this emanated from settlement of legal claims from external third parties in the main.
Programme 2 - Public Works had a budget of R 2,755 billion- an increase from the R2,405 billion budget of the previous 2018/19 financial year. The Department spent R2,723 billion of the budget allocation and this resulted in only 1,2% of the budget remaining unspent. Programme 2 is responsible for payment of rates and taxes including the payment of security services for properties owned and rental payment of leased-in properties. The combination of the three items constitute almost 39% of the programme’s budget. Out of this R2,755 billion budget, the expenditure performance of R2,722 billion confirms that the Department has performed well not only in the management of its internal projects but also on external client departments.
With regards to Programme 3 - EPWP, the Department was allocated an amount of R309 million for the year 2019/20. This indicates an increase of R12,569 million when compared to the budget for the 2018/19 budget. Despite this significant budget increase, the programme was not able to spend its allocation fully. This emanates from delays in the completion of training programmes scheduled for EPWP beneficiaries. Added to the programme’s underspending was the realisation of lesser beneficiaries reporting for duty and this has resulted in reduced balances of expenditure on payment of stipends. Virements/roll-overs Virements and fund shifts
Virements and fund shifts for the year ended 31 March 2020
Voted funds and direct charges Adjusted Shifting of funds Virement Final appropriation appropriation
R’000 R’000 R’000 R’000
Programme
1. Administration 338,631 - 21,000 359,631
2. Public Works Infrastructure 2,755,442 - - 2,755,442
3. EPWP 330,913 - (21,000) 309,913 Programme sub-total 3,424,986 - - 3,424,986
The Department conducted virements of R21 million from the EPWP Programme budget to offset the overall over-expenditure realised in Programme 1 - Administration. This adjustment is in line with the requirements
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of the PFMA (1999, as amended) in terms of virements and shifting of funds. In terms of shifting of funds - the Department reduced R52 million from payments of current expenditure and allocated R31,220 million to accommodate the constrained budget on transfers and subsidies and a further R21,547 million for payment of capital assets. The reason for these fund shifts is that the funding allocated for payment of rates and taxes which were in arrears and payable to municipalities.
Budget roll-over The Department has requested the rollover of funds amounting to R21,781 million. This speaks to the request to make provision for outstanding invoices accruing and relating to Departmental projects. The table below reflects an amount of R9,410 million requested on rehabilitation and refurbishment projects. This includes refurbishments of buildings such as Corner house, 75 Fox Street (Imbumba house) and other the regional offices. Another amount of R9,012 million speaks to maintenance of buildings such as Sage Life, 78 Fox Street and Emoyeni. The Department intends to make use of the Emoyeni building for hosting provincial government meetings or gatherings in order to reduce spending on the use of private facilities for government meetings. An additional budget of R3,359 million is required to process invoices on the BoL building demolition project.
Description 2019/20 infrastructure expenditure as at 31 March 2020
Adjusted Expenditure as at Available budget % spent Committed % spent budget but not paid 31 Mar 2020
R’000 R’000 R’000 % R’000 %
New infrastructure 145,267 136,698 8,569 94 3,359 96
Upgrades and additions 10,000 10,694 -694 107 0 107
Rehabilitation and 50,718 28,374 22,344 56 9,410 60 refurbishment
Maintenance 87,375 88,868 -1,483 102 9,012 135 Total 293,360 264,634 28,726 90 21,781 98 Unauthorised expenditure The Department did not incur any unauthorised expenditure for the year ended 31 March 2020.
Fruitless and wasteful expenditure
Item description R’000
Opening balance 885
Fruitless and wasteful expenditure – relating to current year 58
Less: Amounts written off (943) Closing balance -
Based on the above table, the reportable R885 000.00 is the balance carried through from the previous financial year of 2018/19. This figure is made up of R68 000.00 of cancelled tenders and R817 000.00 on interest incurred on late payment of municipal rates and taxed for the year 2019/20, the Department incurred fruitless and wasteful expenditure for R58 000.00. This amount is made up of interest paid to the City of Johannesburg and Ekurhuleni municipalities. Included in this figure is another amount of R18 000.00 paid to Telkom for delays in payment of outstanding invoice. The balance of R 943 000.00 has been written off in line with the prescripts of the law.
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Irregular expenditure
Item description 2019/20
R’000
Opening balance 451 559
Prior period error -
As restated 451 559
Add: Irregular expenditure - relating to prior year 461
Add: Irregular expenditure - relating to current year 107 550
Less: Prior year amounts condoned -
Less: Current year amounts condoned -
Less: Prior year amounts not condoned and removed - Closing balance 559 570
Irregular expenditure incurred for the year under review amounts to R107.5 million, including the prior year balance of R452 million – the overall balance reported for the year under review amounts to R559.6 million as disclosed in the table above. This emanates from month-to-month contracts on security services which costed R96 million of the balance relating to the current year and other departmental capital projects which, amongst other issues, were conducted without following the correct Supply Chain Management (SCM) Policy. The Department will conduct investigations on these projects in the 2020/21 financial year.
The new mandate as received from the National Treasury requires that the condonement of irregular expenditure be approved by the Provincial Treasury. The Department will make a formal request for condonement in the 2020/21 financial year, especially on cases where investigations have been completed. Future plans of the Department The Department has developed the 2020-2025 Strategic Plan and the 2020/21 Annual Performance Plan for the new term of the sixth administration and the plans has been aligned with an approved framework for the strategic plans and annual performance plans. The Department will implement their programmes in line with the seven priorities and specific interventions in strategic sectors and corridors to achieve optimal outcomes for the next five years. The identified seven priorities are as follows: • Economic transformation and job creation • Education, skills and health • Consolidating the social wage through reliable and quality basic services • Spatial integration, human settlements and local government • Social cohesion and safe communities • A capable, ethical and developmental State • A better Africa and world.
Growing Gauteng Together is inspired by the need and desire to realize the country and province of our dreams through urgent, consistent and disciplined action.
In the next financial year, the Department commits to fast-track the rollout of the Infrastructure Project Pipeline across the Province. The GPG five-year Infrastructure Project Pipeline provides a consolidated view
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of social and economic infrastructure that will be Treasury stating that the application for Treasury used to facilitate job creation and overall economic Approval (TA) IIA for the KPP has been granted and empowerment for the Province. A key objective of it can issue the Request for Proposal (RFP) to the the Pipeline is to demonstrate a follow through on market. infrastructure related commitments to Gauteng On 22 November 2019, the DID issued the RFP citizens and to give ourselves, as provincial and PPPA to the market which was followed by the government, and our partners the confidence that bidders conference/tender briefing held on the 22 we have a plan for how we will use infrastructure January 2020. The RFP is structure into four clusters. as a catalyst for economic development. The The bidding period for clusters 1,3 and 4 bidding Pipeline will provide transparency on infrastructure was initially set to close on 30 June 2020, however, planning and delivery and facilitate for more due to the COVID 19 pandemic ‘lockdown’ and effective monitoring and troubleshooting of safety hazards on vacant buildings, the closing date projects. Additionally, the Pipeline will enable the for all three clusters was extended to 30 July 2020. tracking of forecasted and actual socio-economic The closing date for Cluster 2 remained as at 30 impact (through jobs and impact on the Gross September 2020. Currently, the Kopanong Precinct Domestic Product) of infrastructure investment. Project Steering Committee (KPSC) is dealing with This is all in pursuit of continuing the creation of queries from Bidders and responding to such an environment which support opportunities for by way of Bidder Briefing Notes (BNs) which are growth and jobs. published weekly on the ANSARADA platform. Public-Private Partnerships (PPPs) Discontinued activities/activities to be The Kopanong Precinct Project (KPP) is about discontinued accommodating GPG departments in one precinct. There are no discontinued activities related to the This project is an office accommodation project that Department’s functions. encapsulates the refurbishment of 17 buildings in the Johannesburg Central Business District (CBD) New or proposed activities and one in Greenfield which are owned by the GPG. The intention is for the refurbished buildings As reflected above the only proposed new activity to accommodate the head office functions of the relates to the development and implementation GPG. of the 2020-2025 Strategic Plan and the 2020/21 Annual Performance Plan for the new term of the The precinct will also create linkages between sixth administration. buildings already occupied by departments of GPG and those buildings still to be occupied. This would Supply Chain Management lead to a well-developed spatial network which • Unsolicited bid proposals concluded for allows for the enhancement of synergies between the year under review different provincial departments, shared resources There have not been unsolicited bids that and other spatial economies of scale. The project is have been concluded in the financial year. also intended to provide a central neutral space for interaction between different components of the • SCM processes and systems in place to urban community. prevent irregular expenditure The SCM office conducts information The KPP, procured through a PPP, in strict sharing sessions with SCM staff involved in compliance with National Treasury Regulation 16. procurement activities to discuss relevant The TA1 response to National Treasury conditional prescripts that govern the SCM process. approval were submitted including the TAIIA This is to ensure that all prescripts are application (procurement documentation – RFP, understood and applied when procurement PPPA and Schedules). During the year under review, is undertaken which will assist in the the Department has received a letter from National
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prevention of possible irregular expenditure. In addition, within the quotation system, there is a verification conducted at all levels that ensures that the process was followed, therefore preventing irregular expenditure. • Challenges experienced in SCM and the resolutions made One of the challenges that was experienced was the lengthy time frame of appointment of the probity auditors by the treasury. It was then resolved that the Department will then be authorised to appoint probity auditors to accelerate the appointment of the auditors. An additional challenge experienced by the SCM Unit is the performance management of contractors. It was an agreement that the Primavera: Unifier will be utilised to track performance of contractors. In addition to this, the SCM will have to schedule physical site attendance of the various construction projects to have validation with the system updates. • Gifts and donations received in kind from non-related parties The management of the Gifts and donation is administered by Directorate: Risk Management. It is incumbent upon the official of the Department to disclose this information to the Directorate. The Gift Register indicates that one person in the Department has disclosed the receipt of a gift during the financial year. • Exemptions and deviations received from the National Treasury The National Treasury guide in terms of deviation from normal tender processes requires that a department may deviate from normal tender processes where such deviations are recorded and approved by the Accounting Officer. Similarly, based on the guides, there are limitation that requires that deviations above R15 million for goods and services and R20 million for capital expenditure must be approved from the Provincial Treasury. Deviations that were made during the year 2019/20 financial year are as follows:
Project name Amount Comment
Provision of protective and R16 million The procurement of these materials were as prevention equipment (PPE) for per agreement for the DID to procure for the prevention of the spread of the Province. The distribution of material will be COVID 19 virus. done over a period of three months.
Events after the reporting date • COVID 19 The urgent need to procure resources for prevention of the spread of the COVID 19 virus, resulted in the Department procuring PPE for staff. The need to ensure that staff is protected in provisioning of services, especially those servicing health institutions, was of paramount importance. Although the procurement of some goods were conducted late in the month of March actual delivery of material took place in the new financial year of 2020/21. The Department is responsible for procurement and construction of COVID 19 Health sites - the client department will report on budget and expenditure relating to construction. Procurement of PPE resources for staff amongst others included sanitizers, disposable masks and automated dispensers and this amounted to R16 million in total. An urgent request for approval for procurement of material was requested from the Provincial Treasury in line with the prescripts of Treasury Regulation 16A.
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• Future revenue of the Department
Item description 2019/20
R’000
Analysis of accrued departmental revenue
Opening balance 49 589
Less: Amounts received (9 755)
Less: Services received in lieu of cash -
Add: Amounts recognised 22 420 Closing balance 62 254
The above table, reflects accrued Departmental revenue of R62 million. This effectively means future revenue which could have been received by the Department. Out of R62 million, there was a balance of R22.4 million which is aligned to the current year’s existing contracts between the Department and its lessees. The impact of COVID 19 has negatively affected the economic conditions of tenants, as a result the Department has been inundated with requests for payment holiday as most businesses have not been in operation since lockdown. The Department will, in the new financial year, review the financial positions of all tenants in terms of possible debt recovery. • Other There are no any other matters for reporting in the financial year under review. Acknowledgement/s or appreciation The Department extends its appreciation for the guidance and stewardship provided by the MEC, Ms. Tasneem Motara for the Department of Infrastructure Development and Property Management. Further appreciation is extended to the oversight provided by the Portfolio Committee on Infrastructure, Audit Committee, Provincial Treasury, as well as the Office of the Auditor-General and the Office of the Premier for ensuring that the Department continues to vigilantly deliver on its mandate and accounts to the South African citizens.
To all the provincial departments, as well as the various stakeholders we have interacted with, thank you for your valuable contribution towards enriching the work of the Department.
I would like to express my wholehearted gratitude to the senior management and all staff of the DID for their invaluable support and contribution to our success during this reporting period. Approval and sign-off I approve and sign off the annual report as a true reflection of the work undertaken during the reporting period.
Mr. Richard Makhumisani
Acting Accounting Officer Gauteng Department of Infrastructure Development 30 July 2020
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5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT
To the best of my knowledge and belief, I confirm the following:
All information and amounts disclosed throughout the annual report are consistent.
The annual report is complete, accurate and is free from any omissions.
The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury.
The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks and guidelines issued by the National Treasury.
The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information.
The Accounting Officer is responsible for establishing and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.
The external auditors are engaged to express an independent opinion on the annual financial statements.
In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the department for the financial year ended 31 March 2020.
Yours faithfully
Mr. Richard Makhumisani
Acting Accounting Officer Gauteng Department of Infrastructure Development 30 July 2020
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6. STRATEGIC OVERVIEW 6.1 Vision To be a leading sustainable infrastructure provider and facilitator that positions Gauteng as a globally competitive City Region, with inclusive economic growth and decent work for all. 6.2 Mission To contribute towards the radical transformation, modernisation and re-industrialisation of Gauteng by accelerating integrated service delivery, maintenance and management of public infrastructure and deploying built environment professionals while encouraging the active participation of an empowered citizenry. 6.3 Values The DID fully supports the Premier’s stated objective that, “We as public officials and public servants have to radically transform our attitudes and behaviour towards the public to re-assert the dictum that we are here to serve the people and not the other way around.” In the spirit of this objective as well as in the spirit of the ‘Batho Pele’ values which emphasis service excellence and putting the people we serve first, the DID has embraced a set of values that aligns with and enables these objectives.
Table 6: Values of the Department
Values of the Department of Infrastructure Development
Integrity The Department will encourage conduct by its employees and contractors that engenders reliability, veracity, honour and truthfulness.
Honesty The Department promotes sincere, frank and open service to its clients and to the citizens of the Province.
Professionalism The Department commits to a service that is proficient and exceptional, displaying high levels of competence.
Transparency The Department promotes simplicity and intelligibility in all its communication, engagements and services in general, to ensure that the citizens know and understand its functions and interventions.
Accountability The Department commits its staff and service providers to be answerable to the public and oversight institutions of government for the services they render and commitments they make.
Collective The Department espouses a culture of collective work, resourcefulness, ingenuity and initiative to ensure a Responsibility seamless service delivery.
Compassion The Department pledges to deliver its services to clients and Gauteng residents with care, kindness and empathy, in selfless pursuit of a better life for all.
Innovation The Department commits to uphold the highest standards of novelty and uniqueness in all the services that it provides, using all its potential to introduce fresh ideas and new ways of doing things.
Value addition The Department promotes service delivery that improves the quality of business processes, state conduct and the lives of the people of Gauteng.
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7. LEGISLATIVE AND OTHER MANDATES
The DID derives its mandate from various pieces of legislation. Some of the legislation is specific to the infrastructure delivery industry; other pieces of legislation are directly impacting on the construction industry, while other pieces of legislation are indirectly impacting on the infrastructure delivery industry.
In summary, the purpose of the DID is to develop and maintain a socio-economic infrastructure that allows all of the Province’s people to have access to social services.
This includes: • Ensuring the implementation of all infrastructure programmes and projects reflected in the short-, medium- and long-term plans of the GPG. • Managing the construction of the GPG’s capital expenditure (CAPEX) projects such as schools, hospitals, clinics and recreation centres. • Managing the provision of maintenance services for all the GPG’s infrastructure. • Managing the provincial property portfolio. • Ensuring participation and involvement of communities through the implementation of the EPWP within GPG CAPEX projects and other departmental projects. • Utilising the construction sector as a catalyst for the development of skills, the creation of jobs and the development of sustainable communities.
The specific pieces of legislation that make up this mandate are briefly described below. 7.1 CONSTITUTIONAL FRAMEWORK IMPACTING ON INFRASTRUCTURE SECTOR Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996, as amended) The Act introduces a new Constitution for the Republic of South Africa and provides for the Provincial and National functions with regard to public works functions (Schedules 4A and 5A of the Constitution, in particular). Schedule 4A makes the public works function a concurrent National and Provincial legislative competence. It provides that where the function in Schedule 4A and 5A can best be administered locally, a Provincial or National Department could by agreement assign/delegate such a function to a Municipality; provided that the Municipality has capacity and resources to implement the function. 7.2 LEGISLATION GOVERNING THE PROPERTY MANAGEMENT Sectional Titles Act, 1986 (Act No. 95 of 1986, as amended by Acts No. 24 and 29 of 2003) The Act provides for the division of buildings into sections and common property and for the acquisition of separate ownership in sections, coupled with joint ownership in common property. The Act further provides for: • The control of certain incidents attached to separate ownership in sections and joint ownership in common property. • The transfer of ownership of sections and the registration of sectional mortgage bonds over, and real rights in sections. • The conferring and registration of rights in, and the disposal of, common property. • The establishment of body corporates to control common property and for that purpose to apply the rules. • The establishment of a Sectional Titles Regulation Board.
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Abolition of Certain Title Conditions Act, 1999 (Act No. 43 of 1999) The Act provides for the abolition of certain conditions in terms of which the consent or permission of the holder of an office under the Republic is required for the alienation or transfer of immovable property from one person to another.
Prevention of Illegal Eviction and Unlawful Occupation of Land Act, 1998 (Act No. 19 of 1998) The Act provides for the prohibition of unlawful eviction, to provide for procedures for the eviction of unlawful occupiers and to repeal the Prevention of Illegal Squatting Act, 1951 (Act No. 52 of 1951) and other obsolete laws.
The Act prescribes a process for dealing with land invasions. The Act prohibits unlawful evictions but seeks to highlight procedures that must be followed for the eviction of unlawful occupiers.
Constitutional Court Judgment of 2000, on the enforceability of social and economic rights The judgment stresses that the State must take reasonable steps to realise the right afforded by section 26 of the Constitution and that such measures must take into account the degree and extent of the denial of the right they endeavour to realise.
Communal Land Rights Act, 2004 (Act No. 11 of 2004) The Act provides for legal security of tenure by transferring communal land, including Gauteng provincial land, to communities, or by awarding comparable redress. The Act also provides for: • The conduct of a land rights enquiry to determine the transition from old order rights to new order rights. • The democratic administration of communal land by communities. • Land Rights Boards. • The co-operative performance of Municipal functions on communal land.
Communal Property Associations Act, 1996 (Act No. 28 of 1996) The Act enables communities to form juristic persons, to be known as Communal Property Associations in order to acquire, hold and manage property on a basis agreed to by members of a community in terms of a written constitution.
Deeds Registries Act, 1937 (Act No. 47 of 1937) The Act consolidates and amends the laws in force in the Republic, relating to the registration of deeds.
Extension of Security of Tenure Act, 1997 (Act No. 62 of 1997) The Act provides for measures with State assistance to facilitate long-term security of land tenure and to: • Regulate the conditions of residence on certain land. • Regulate the conditions on and circumstances under which the right of persons to reside on land may be terminated. • Regulate the conditions and circumstances under which a person, whose right of residence has been terminated, may be evicted from the land.
Land Administration Act, 1995 (Act No. 2 of 1995) The Act provides for the delegation of powers and the assignment of the administration of laws regarding land matters to the provinces. It also provides for the creation of uniform land legislation.
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Expropriation Act, 1951 (Act No. 39 of 1951) as repealed by Act No. 63 of 1975 The Act provides for the expropriation of land and other property for public and certain other purposes.
State Land Disposal Act, 1961 (Act No. 48 of 1961) The Act provides for the disposal of certain State land and for matters incidental thereto, and to prohibit the acquisition of State land by prescription. 7.3 LEGISLATION GOVERNING THE BEHAVIOUR OF PARTIES These pieces of legislation protect the interests of parties contracting with the organs of State.
Public Protector Act, 1994 (Act No. 23 of 1994) The Public Protector Act (1994) empowers the public to lodge complaints with the Public Protector who can act as an ombudsman and to investigate and report on and take remedial action on conduct in state affairs or in the public administration that is alleged to be improper. Information or evidence that suggests criminal activity is referred to the South African Police Services and the Director of Public Prosecutions. Non-compliance with tender procedures resulting in irregular or unauthorised expenditure is referred to the Auditor-General.
Public Finance Management Act, 1999 (Act No. 1 of 1999, as amended) The Act regulates financial management in the national government and provincial governments, to ensure that all revenue, expenditure, assets and liabilities of those governments are managed efficiently and effectively. The Act also provides for the responsibilities of persons entrusted with financial management in those governments, and to provide for matters connected therewith.
Promotion of Access to Information Act, 2000 (Act No. 2 of 2000) Gives effect to the rights provided for in the Bill of Rights in section 32 of the Constitution (Act No. 108 of 1996), namely, that everyone has the right of access to information held by the State and any information that is held by another person that is required for the exercise or protection of any rights. The Act sets out the procedures pertaining to obtaining records in the public and private sectors, the grounds for refusal of access to information, mandatory disclosures in the public interest, and appeals against decisions of information officers of certain public bodies.
The Preferential Procurement Policy Framework Act, 2000 (PPPFA, Act No. 5 of 2000) Section 217(3) of the Constitution allows for the procurement policy that provides for categories of preferences in allocating contracts and the protection and advancement of persons, or categories of persons, disadvantaged by unfair discrimination.
The Act requires organs of State (those responsible for procurement and elected leaders, e.g. accounting officers and councillors) to determine their preferential procurement policy and to implement it within a framework. The framework provided by the Act requires that a preference point system must be followed: • For contracts with a Rand value above a prescribed amount, a maximum of 10 points may be allocated for specific goals, provided that the lowest acceptable tender scores 90 points for price. • For contracts with a Rand value equal to or below a prescribed amount, a maximum of 20 points may be allocated for specific goals, provided that the lowest acceptable tender scores 80 points for price.
The Promotion of Administrative Justice Act, 2000 (PRAJA, Act No. 3 of 2000) This Act applies to all organs of state and gives effect to the right to administrative action that is lawful, reasonable and fair as provided in the Bill of Rights and presented in section 33 of the Constitution.
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It sets out fair administrative procedures for the judicial review of administrative actions, the questioning of unfair administrative action, the setting aside of administrative action, the correcting of defective action, and the ordering of payment of compensation and remedies in proceedings for judicial review, including the prohibition of an administrator from acting in a particular manner. Decisions made in the public sector regarding actions taken in the evaluation and award of a contract is an administrative decision, and as such, subject to PRAJA (2000).
The Prevention and Combating of Corrupt Activities Act, 2004 (Act No. 12 of 2004) This Act applies to both the public and the private sectors. It defines corruption and related activities as an offence, establishes a register to place certain restrictions (relating to tenders and contracts) on persons and enterprises convicted of corrupt activities and places a duty on certain persons holding a position of authority to report certain corrupt transactions.
The Act also makes it an offence to be an accessory to or after the abovementioned offences as well as to attempt, conspire or induce another person to commit such offences. Persons convicted of an offence may be fined or imprisoned and their particulars or the particulars of the offending firm will be placed on a register of tender defaulters which will be open to the public. Purchasing authorities must disqualify and ignore tenders received from such persons and enterprises. In terms of the Act, corrupt activities include: • Improperly influencing in any way, the promotion, execution, procurement or retention of any contract. • The fixing of the price, consideration or other moneys stipulated or otherwise provided for in any contract. • Manipulating by any means the award of a tender. • Manipulating by any means the outcome of an auction.
Public officers having a private interest in a contract connected with the public body that employs them, except where the interest is in a stock exchange listed company or their conditions of employment do not prohibit such involvement in a contract.
The direct or indirect offering or receiving of gratifications underlies the abovementioned corrupt activities. The Act further places a duty of care on accounting officers and accounting authorities to report known or suspected cases of corruption to a police officer, failing which, they are guilty of an offence. Police officers are required to issue notices of receipt of such reports.
Broad-Based Black Economic Empowerment Act, 2003 (B-BBEE Act No. 53 of 2003) The Act establishes a legislative framework for the promotion of black economic empowerment and to empower the Minister of Trade and Industry to issue codes of good practice and to publish transformation charters.
The Act further provides for the establishment of the Black Economic Empowerment Advisory Council. The recent amendments of the PPPFA (2000) calls for the submission of B-BBEE Status Rating Certificates as a basis for the evaluation of tenders, with the application of the 80:20 preference points system (tenders below R1.0 million) and 90:10 preference points system (for tenders above R1.0 million).
The Promotion of Equality and the Prevention of Unfair Discrimination Act, 2000 (PEPUDA, Act No. 4 of 2000) The section 9 of the Bill of Rights contained in the Constitution states that equality includes the full and equal enjoyment of all rights and freedoms and that no person may unfairly discriminate directly or indirectly
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against anyone. To this effect, the PEPUDA (2000) was promulgated.
The Act prohibits unfair discrimination against any person on the grounds of race or gender and requires that reasonable steps be taken to accommodate the needs of such persons. A schedule attached to the Act provides an illustrative list of unfair practices in certain sectors. This list cites “unfairly limiting access to contractual opportunities for supplying goods and services” as an unfair practice.
Legislation governing targeted procurement There are various pieces of legislation that govern the achievement of the primary and secondary procurement objectives set out in the Constitution.
The Competitions Act, 1998 (Act No. 89 of 1998) The Competitions Act prohibits the following between parties: • Any restrictive horizontal practice that prevents or lessens competition in markets or involves fixing a purchase or selling price or any other trading conditions; dividing markets by allocating customers, suppliers, territories, or specific types of goods or services; or collusive tendering. • Any restrictive vertical practice that substantially prevents or lessens competition in a market or establishes a minimum resale price. 7.4 LEGISLATION GOVERNING CONSTRUCTION INFRASTRUCTURE DELIVERY Construction Industry Development Board Act, 2000 (CIDB Act No. 38 of 2000) The Act provides for the establishment of the Construction Industry Development Board (CIDB) to implement an integrated strategy for the reconstruction, growth and development of the construction industry.
The CIDB Act (2000) mandates the Board to establish and maintain a National Register of Contractors and a National Register of Projects. The DID will be required to appoint CIDB registered contractors on all its infrastructure development and maintenance projects. All projects above a set threshold (currently R200,000) will also have to be registered with the CIDB.
National Building Regulations and Building Standards Act, 1977 (Act No. 103 of 1977) The Act provides for the promotion of uniformity in the law relating to the erection of buildings in the areas of jurisdiction of local authorities, and for the prescribing of building standards.
National Heritage Resources Act, 1999 (Act No. 25 of 1999) The Act introduces an integrated and interactive system for the management of the national heritage resources. The Act also aims to promote good governance at all levels, and empower civil society to nurture and conserve their heritage resources so that they may be bequeathed to future generations. National Environmental Management Act, 1998 (NEMA, Act No. 107 of 1998) as amended by Act No. 8 of 2004
a. Act No. 107 of 1998 The Act provides for co-operative environmental governance by establishing principles for decision-making on matters affecting the environment, institutions that will promote co-operative governance and procedures for co-ordinating environmental functions exercised by organs of state. The Act further provides for the prohibition, restriction or control of activities which are likely to have a detrimental effect on the environment, and to provide for matters connected therewith.
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b. Act No. 8 of 2004 The Act amends the National Environmental Management Act (1998), so as to insert certain definitions and substitute others, to make further provision regarding environmental authorisations, to make certain textual alterations and to provide for the registration of associations of environmental assessment practitioners.
Housing Consumers Protection Measures Act, 1998 (Act. No. 95 of 1998) as amended by Act No. 27 of 1999) c. Act 95 of 1998 The Act makes provision for the protection of housing consumers, and to provide for the establishment and functions of the National Home Builders Registration Council. d. Act 27 of 1999 The Act amends the Housing Consumers Protection Measures Act (1998), so as to rectify certain cross- references, to remove ambiguity in the wording of certain sections, to make further provision for regulating measures, to make better provision for the necessary phased implementation of the Act. e. Standards Act, 1993 (Act No. 29 of 1993) The Act provides for the promotion and maintenance of standardisation and quality in connection with commodities and the rendering of services and for that purpose to provide for the continued existence of the South African Bureau of Standards (SABS), as the national institution for the promotion and maintenance of standardisation and control thereof by a Council. 7.5 OVERVIEW OF SECONDARY LEGISLATION THAT HAS AN IMPACT ON PROCUREMENT OF GOODS AND SERVICES A number of other pieces of legislation also impact on procurement by organs of State. They govern issues ranging from arbitration to competition and the promotion of access to information.
The Conventional Penalties Act, 1962 (Act No. 15 of 1962) Provides for the enforceability of penalty stipulations, including stipulations based on pre-estimates of damage.
Arbitration Act, 1965 (Act No. 42 of 1965) Provides for the settlement of disputes by arbitration tribunals, in terms of written arbitration agreements and for the reinforcement of the awards of such tribunals.
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Public Audit Act, 2005 (Act No. 26 of 2005) Requires that the Public Auditor reasonably satisfies himself, that satisfactory management measures have been taken to ensure that resources are procured economically and utilised efficiently and effectively. (The Public Auditor has wide powers to investigate and enquire into procurement matters and related control. He is furthermore obligated to report his findings either to Parliament or a Provincial legislative, as relevant).
State Information Technology Agency Act (SITA Act No. 88 of 1998) Empowers the State Information Technology Agency (SITA) to act as a procurement agency in respect of information technology requirements in accordance with the State Procurement Policy regarding the provision of data processing services; training; application software development and maintenance services; technical, functional and business advice and support; and related management services.
Protected Disclosure Act, 2000 (Act No. 26 of 2000) Makes provision for the protection of employees in both the public and private sectors who disclose information in good faith regarding unlawful or irregular conduct to the Public Protector, Auditor-General or a person or body established for this purpose in terms of the Act. Protects those employees who “blow the whistle” on corrupt practices.
Electronic Communications and Transactions Act, 2002 (Act No. 25 of 2002) The Act establishes legal requirements for data messages and the communication of data messages.
Legislation regulating the employment of public servants The various pieces of legislation regulating the employment of public servants include, but are not limited to the following: • Public Service Act, 1994 (Act 103 of 1994) • Public Service Regulations, 2001 • Public Service Laws Amendment Act (Act 47 of 1997 and Act 861998_ • Skills Development Act, 1998 (Act 97 of 1998) • Public Service Co-ordinating Bargaining Council and General Public Service Sectoral Bargaining Council (GPSSBC) collective agreements. 7.6 PROVINCIAL POLICIES IMPACTING ON THE SCOPE OF WORK OF THE DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT There are a number of strategic policy documents that have an impact and influence on the mandate and direction of the service delivery programme of the Department of Infrastructure Development. These include, but are not limited to the following: • Municipal Integrated Development Plans (for the various metros, districts and local Municipalities) • Gauteng Provincial Growth and Development Strategy • Gauteng Strategic Procurement Framework • Gauteng Medium-Term Strategic Framework (2009-2014) • Gauteng Master Skills Plan • National Development Plan 2030 • The Infrastructure Delivery Management System.
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GENERAL INFORMATION GENERAL INFORMATION 8. ORGANISATIONAL STRUCTURE CD: Dir.: Dir.: Dir.: CD.: Services Construction Supply Chain Procurement
Internal Control Performance Branch: Services Management Goods & Financial Management Information Financial Management CD: CD: Dir.: Dir.: Dir.: HRM Dir.: Dir.: Dir.: Dir.: Services Services Dir.: Security Dir.: Technology Management Branch: Logistical Office Main-streaming Support Services Information and Transformation & Transformation Communications CD.: Legal Services Management Transversal Support Transversal Organisational Risk Corporate Services Dir.: Dir.: Dir.: Provincial Provincial CD: Innovation EPWP & Evaluation Coordination Development Empowerment and Community EPWP Monitoring Dir.: Dir.: Portfolio, CD: HOD Research and Research Project Systems Project Programme and Programme Green Technology Green and Systems Infrastructure Infrastructure Research, planning Research, Office of the MEC Dir.: Dir.: Dir.: Dir.: Asset Plans Property Property Property Property CD: Area One Area Two Area Systems and Management Management Management Development Management Immovable Asset CD: CD: Services Portfolio Portfolio Education Departments Branch: and Technical and Technical and Technical and Technical Infrastructure Infrastructure Infrastructure Infrastructure Other Provincial Other Provincial Departments Infrastructure, Infrastructure, Maintenance and & other Provincial & other Provincial Support Education Technical Portfolio Technical Dir.: Dir.: Office of the HOD CD: CD: CD: Dir.: Dir.: Health Services Services Support Engineering Maintenance Infrastructure and Infrastructure Strategic Technical Strategic Technical Technical Portfolio Technical Branch: Maintenance and Technical Portfolio Technical Health Infrastructure, Health Infrastructure,
9. ENTITIES REPORTING TO MEC
There are no entities reporting to the MEC in the year under review.
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Performance Information
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PARTANNUAL B:C:D: PERFORMANCEGOVERNANCEHUMAN FINANCIAL RESOURCE STATEMENTS INFORMATION MANAGEMENT Performance Information
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1. AUDITOR-GENERAL’S REPORT: PREDETERMINED Performance OBJECTIVES The Auditor-General South Africa (AGSA) currently performs certain audit procedures on the performance Information information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the report to management, with material findings being reported under the Predetermined Objectives heading in the Report on other legal and regulatory requirements section of the auditor’s report.
Refer to page 108 of the Report of the Auditor-General, published as Part E: Financial Information. 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE 2.1 Service delivery environment As the Department approaches the end of the fifth-term, it worth noting that the Department has made significant strides in entrenching the capacity and capability for delivering world class infrastructure projects within the Province. Infrastructure is a backbone of any modern economy and the province has continued to prioritise infrastructure investment as part of its efforts to realise inclusive growth and shared prosperity. These achievements are part of the journey that the Department has commenced on since its establishment in 2009. During the past years, significant emphasis was put on improving internal back-end processes, systems and structures that were a pre-requisite to delivering infrastructure projects on time, and within cost and quality parameters. The Lutsinga Infrastructure Nerve Centre continued to be a key tool utilised in the management of the Department’s projects and property portfolio. Weekly high-level Operational Committee were held to interrogate the progress made and where necessary escalate and address the challenges faced. These meetings were also cascaded to the various core branches of the Department, to ensure discipline and rigor in the manner in which projects were executed on behalf of client departments.
The Department further implemented a Project Readiness Matrix (PRM), in line with the approved Gauteng Provincial Infrastructure Management System, and this tool has proved valuable in understanding the causes of many project related challenges. The PRM has been vital during the development of the client department project pipeline for the 2019/20 financial year. This work has established and laid the foundation on how infrastructure projects can be coordinated during their planning and implementation phases; this is a key area that requires a lot more attention to ensure that projects are properly selected, prioritised and sequenced for implementation in alignment to the needs of various communities.
The analyses of the Departmental project pipeline has resulted in the Department categorising the projects it has/will implement on behalf of client departments into Platinum, Silver and Coal projects; this categorisation provides much more focus and clarity on the projects that the Department must deliver during the 2019/20, 2020/21 and 2021/22 financial years. It has also ensured that the Department’s commitments in terms of the Deliverology process are based on rigorous analysis and planning as per the goals and strategies. 2.2 Service Delivery Improvement Plan (SDIP) SDIPs help departments to focus on those critical services within the operational plan which have been identified for special attention and improvement. This process is undertaken to raise the bar in respect of service delivery. The DID has selected the construction of the six libraries as its commitment to improve service delivery for the benefit of the citizens of Gauteng. These services are reported on a continuous basis to its clients and other stakeholders to ensure that they are kept up-to-date on the development and to ensure that their client’s expectations are continuously met.
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The tables below highlight the SDIP and the achievements to date for the 2019-2020 financial year.
Main services and standards
Main services Beneficiaries Current/actual standard of service Desired Actual achievement standard of service Construction of 6 libraries
1. Akasia Community Library Citizens/ The anticipated construction 100% 50% construction Department of end date was 31 March 2020 completed competed Sports, Arts, 2. Boipatong Community Library Culture and The anticipated construction 99% construction Recreation/ end date was 31 March 2020 competed municipalities 3. Atteridgeville Community Library The anticipated construction 100% construction end date was 31 March 2020 competed
4. Kokosi Community Library The anticipated construction 100% construction end date was 31 March 2020 competed
5. Impumelelo Community Library The anticipated construction 40% construction end date was 31 March 2020 competed
6. Rust-Ter-Vaal Community Library The anticipated construction 72% construction end date was 31 March 2020 competed
Batho Pele arrangements with beneficiaries (Consultation, access etc.)
Current/actual arrangements Desired arrangements Actual achievements
Conduct on-site meeting with the Continuous engagement meeting with the On-site meetings with contractors and contractor to discuss the progress of the relevant stakeholders (client, contractor, client department. project. MEC) to discuss progress of the project.
Provide project status report to the client Ensure that client departments have Client departments are provided with that is accurate and relevant. timeous access to the project status status report on a continuous basis. report.
Service delivery information tool
Current/actual information tools Desired information tools Actual achievements
Primavera System Electronic service delivery improvement Implemented an effective project systems. management system to monitor the delivery of the DID’s projects on time, with budget and expected standard.
Complaints mechanism
Current/actual complaints mechanism Desired complaints mechanism Actual achievements
The DID has placed compliments / Electronic compliments/complaints and Achieved implementing a manual complaints and suggestions boxes at its suggestions system. system; in the process of establish an service delivery reception areas. However, electronic complaints system with clear the Department does not have an roles and responsibilities. electronic complaints system.
On-site trouble shooting meeting with Continuous on-site meeting with the the client and contractors. client and contractors.
2.3 Key policy developments and legislative changes There are no any major changes to relevant policies or legislations that may have affected its operations during the period under review or future financial periods.
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3. STRATEGIC OUTCOME ORIENTED GOALS
The DID has identified the following six strategic outcomes orientated goals: • Sustainable infrastructure: This relates to expanding and maintaining public infrastructure to keep abreast of the growing demand for sustainable infrastructure, in a way that promotes the development of the Province and redresses existing economic disparities. • Accelerate service delivery: This relates to improving the speed and effectiveness with which we deliver infrastructure, in order to ensure that the Department is able to sustainably and consistently satisfy the direct and derived needs and expectations of our client organisations and Gauteng citizens. • Organisational development for building state capacity: We are committed to improving the technical and administrative capacity of the Department as a means of maintaining an efficient, effective and development-oriented public service that actively collaborates with an empowered, fair and inclusive citizenry. • Optimise state assets for economic development and supporting entrepreneurs: We will ensure that the Department leverages all state assets in a way that makes a significant contribution to the economic development of the Province, and which enables and supports emerging and existing B-BBEE entrepreneurs. • Empowering communities through job creation in partnership with the public and private sector: We will act as a catalytic enabler in the creation of jobs and the resulting economic empowerment of communities in the Province in a way that gives specific focus to the opportunities that are made available to women, youth and people with disabilities in our communities. • Integrated planning: We are deploying and will leverage the Infrastructure Development Management System as a means of ensuring that the Department adopts an efficient and effective integrated planning process that actively engages all the Department’s stakeholders in projects, to reliably and consistently deliver and maintain a sustainable infrastructure in a way that leads to economic empowerment and job creation for Gauteng’s communities.
The delivery of infrastructure projects to various geographical corridors within the province plays a key role in the development of societies. The Department has achieved significant strides during the five-year term, in relation to one of its core mandate of infrastructure delivery. Since the commencement of the current political term, a total of 221 education projects have been completed. Those include new schools, boarding facilities, restorative repairs, (including conversions to SMART classrooms), Grade R classrooms and fencing projects.
In addition, there were 38 health projects which were completed during the term and these were in relation to renovations and upgrades to hospitals and the installation of medical equipment, such as oxygen and vacuum points at hospitals, the construction of a new examination hall at a hospital, installation of palisade fences, construction of a new clinic and refurbishments.
Further, in relation to other construction projects, the Department completed 37 projects on behalf of the Department of Sports, Arts and Recreation; Social Development; Transport; and Agriculture and Rural Development. This brings the number of infrastructure projects completed to a total of 296.
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4. PERFORMANCE INFORMATION BY PROGRAMME 4.1 Programme 1: Administration Purpose of the Programme To render executive support services to the Department to enable strategic good governance. The sub- programmes within this programme are, Transversal Support Services, Information and Communication Technologies, Human Resource Management, Legal Services, Security Management Services, Logistical Office Support Services, Transformation and Mainstreaming, Financial Management, Supply Chain Management, Goods and Services, Internal Control and Construction Procurement.
Strategic objectives for the financial year under review • To be fully compliant with PFMA (1999, as amended) as well as Treasury Regulations and practice notes. • To contribute towards the growth and development of B-BBEE-owned enterprises, SMMEs and co- operatives by setting aside specific percentage of the total procurement budget.
Performance indicator achievements The infrastructure-based programmes and projects are said to be a key catalyst for economic growth and development by leveraging the public sectors procurement process to benefit the previously disadvantaged individuals. Consequently, the Department has done notably well in its procurement towards Black firms and SMMEs by overachievement of 13.97% and 40.26% respectively on the targets for these targets. The overall underachievement of the financial year towards firms owned by People with Disabilities (PwDs) and Military Veterans, continue to remain a challenge. In this financial year, the targets for Black women and youth have not been achieved.
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PERFORMANCE INFORMATION PERFORMANCE INFORMATION Comment on deviations this group. lower than anticipated. The group the will be prioritised through maintenance panel and quotation process. low for the period. low was lower than anticipated. The the will be prioritised through group maintenance panel and quotation process. Deviation 2019/2020 achievement No deviation Not applicable. from planned from target to actual Audit Actual 1.42% 0.58% has been for this group The response 93.97%31.33% -13.97% from was received A good response 3.75% was this group from The response 16.33% 6.67% was this group from The response outcome 2019/2020 Unqualified achievement 2% 80% 35% 23% 2019/2020 Unqualified Planned target audit outcome Provincial Indicators Provincial Actual 2018/2019 Programme/ Sub-programme Programme/ included in achievement 2018/19 APP 1 Indicator not Actual 2017/2018 achievement Supporting Strategic Goal 3: Organisational development for building state capacity and co-operatives by setting aside specific percentage of the total procurement budget of the total procurement and co-operatives by setting aside specific percentage 1 Actual Strategic Objective 3.1: To be fully compliant with PFMA & Treasury Regulation and practice notes be fully compliant with PFMA & Treasury Strategic Objective 3.1: To 0.81% 9.32% 0.77% 88.30%56.05% 81.14% 32.47% 76.16% 43.54% 19.56% 23.52% 25.27% 2016/2017 achievement Supporting Strategic Goal 4: Optimise state assets for economic development and supporting entrepreneurs Performance indicator Unqualified audit outcome for previous Unqualified audit outcome for previous financial year spent on of procurement Percentage Black-owned enterprises spent on Black of procurement Percentage women-owned enterprises spent on of procurement Percentage people with disabilities owned enterprises spent on of procurement Percentage youth-owned enterprises Strategic Objective 4.1: To contribute towards the growth and development of Broad- Based Black Economic Empowerment (BBBEE- owned enterprises, and Small, Medium and Micro Enterprises (SMMEs Based Black Economic Empowerment (BBBEE- owned enterprises, and Small, Medium Micro and development of Broad- the growth contribute towards Strategic Objective 4.1: To PROGRAMME ADMINISTRATION 1:
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PERFORMANCE INFORMATION PERFORMANCE INFORMATION Comment on deviations during the period and first two quarters underachievement diluted the overachievement of last two quarters. SMMEs in the financial period. this targeted. Numerous from made through appointments were the goods and service quotation maintenance panel but not enough to achieve the target. It should be noted is a variation of 0.08% from there target. Deviation 2019/2020 achievement from planned from target to actual Actual 0.85% 0.15% was low this group from The response 75.26% - 40.26%27.92% from was received A good response 0.08% was received A favourable response 2019/2020 achievement 1% 35% 28% 2019/2020 Planned target Actual 2018/2019 Programme/ Sub-programme Programme/ achievement Actual 0.08% 0.32% 2017/2018 achievement 0% Actual 43.15% 53.55%13.56% 43.08% 13.62% 7.24% 2016/2017 achievement Performance indicator Percentage of procurement spent on MVA spent on MVA of procurement Percentage owned enterprises of total departmental Percentage allocated to Small, Medium procurement Enterprises (SMMEs and Micro in terms of procurement percentage Total Enterprise Revitalisation (TER) Township
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Strategy to overcome areas of under performance The Department continuously engaged with the main contractors that were awarded contracts over R30 million to appoint companies owned by Black women, youth, military veterans as sub-contractors. The revised 2017 Regulations will be utilised to implement prequalification/ mandatory sub-contracting/ objective criteria for this group when tenders are being advertised. The Department aims to appoint firms owned by PwDs through the quotation process. The appointment made to Black women-, youth-, military veterans-owned enterprises will be prioritised through maintenance panel.
Changes to planned targets For the year under review, there were changes on both the internship and learnership programmes to performance indicators in this programme. The changes resulted in the removal of the indicators from the Revised Annual Performance Plan due as the programmes were put on hold due to budgetary constraints.
Linking performance with budgets The following is a summary table of the actual expenditure in comparison to the adjusted appropriation for both the current year and previous year. The information is provided at a sub-programme level and agrees to the appropriation statement of the financial statements.
Sub-programme expenditure
Sub- programme name 2018/2019 2019/2020
Final Actual (Over)/under Final Actual (Over)/under appropriation expenditure expenditure appropriation expenditure expenditure
R’000 R’000 R’000 R’000 R’000 R’000
Office of the MEC 9,160 9,034 126 12 968 12 537 431
Corporate Support 309,306 309,031 275 330 647 322 921 7 726
Management of 16,112 16,100 12 16 016 15 912 104 Department Total 334,578 334,165 413 359 631 351 370 8 261
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4.2 Programme 2: Public Works
Purpose of the Programme This Programme is responsible for providing the core services that are mandated to the Department. This includes being the only implementer of infrastructure and maintenance projects on behalf of all GPG departments. Maintenance projects include renovations, refurbishments and upgradings. In the case of the Provincial Department of Health, it also includes the implementation of day-to-day, routine/preventative and emergency maintenance at all Health facilities in the province, with the exception of Jubilee Hospital and Odi Hospital that are maintained by the Provincial Department of Health.
The DID manages the construction procurement projects for provincial departments and issues framework/ term contracts for day-to-day, routine/preventative maintenance, when required, for all provincial departments. This also includes the maintenance and estate management services provided for shared offices, the Premier’s residence and offices used by the DID itself. It is also a user of immovable assets in terms of immovable assets being utilised by the DID.
The Programme is also responsible for managing immovable assets of the GPG as the provincial custodian. It manages and plans for effective and efficient utilization of immovable assets, management of leases, estates and payment of creditors for allocated areas, management of acquisition and disposal of immovable properties and facilitation of property development.
The following sub-programmes exist within this programme • Heath Infrastructure, Maintenance and Technical Portfolio Services • Infrastructure, Maintenance and Technical Portfolio Support Education and other Provincial Departments • Immovable Asset Management • Infrastructure Research, Planning and System.
Strategic objectives for the financial year under review • To contribute to the Gauteng City Region through the delivery of educational, health and STARS infrastructure projects. • To provide high quality and consistent maintenance services to client departments through statutory, condition based, preventative maintenance and the replacement of aged and obsolete electromechanical plant and equipment to ensure uninterrupted service delivery. • To contribute towards the re-generation of the inner city by establishing the Kopanong Precinct. • To leverage the Provincial Immovable Assets Portfolio to generate revenue and meet service delivery requirements. Performance indicator achievements Education infrastructure In accelerating social transformation, the Department continues to implement infrastructure projects on behalf of the Department of Education which will contribute in improving the quality of education in the Gauteng City Region. The Department remains committed in its endeavours to deliver modern and state-of- the-art infrastructure and property management projects.
Through infrastructure delivery, the Department successfully completed 13 projects on behalf of Department of Education. The completed projects include the demolition and the construction of the new Noordgesig
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Primary School. Renovations and rehabilitations were done on the following schools: Westbury Secondary School, Amos Maphanga Secondary School, Aurora Girls High School, Springs Secondary School, Laerskool Vaal Riviere and George Mbilase Primary Schools. Restorative repairs were done at Nkumbulo Secondary School.
In addition, the erection of palisade fencing was done at Primary School Lebogang Primary School while the construction of boundary wall was erected at Laerskool Klipdrift. Construction of a Grade R classroom was also completed at Ivory Park Primary School as well as the demolition of existing structures at Katorus College.
Due to challenges encountered by the Department, there have been projects which were not completed. Those are, Krugerlaan Learners with Special Needs (LSEN) School due to the contractor limitation to access which impacted negatively on project completion. The other affected project was the Abram Hlophe Primary School due to community disruptions as well as additional scope of work by client. The deteriorated conditions of the Hillcrest Primary School resulted in change of scope by client. Lastly, the delay at the Malvern Primary School was caused by additional works approval which resulted in delays of material orders and extension of time.
Detailed designs were also concluded, and 18 projects were ready for tender at the end of financial period. Those were in relation to Chivirikani Secondary School, Noordgesig Secondary School, Ebomini Primary School, Northcliff Primary School, Refitlhilepele Primary School, Durban Deep Primary School, Rodney Mokoena Preparatory School, Pitseng Primary School, Lyttleton Primary School, Itireleng Primary School, Itumeleng Madiba Primary, Nellmapius Secondary School, Rooderpoort Primary School and Felicitas LSEN School. The Designs for Reiger Park Primary School, Mohlodi Primary School, Conamore Primary School and Rant en Dal LSEN School were completed however they do not form part of the performance information audited in the current financial year.
Close-out documentation was finalised for the following projects: Everest Primary School, Bafikile Primary School, Blaigowrie Primary School, Westonaria Primary School, Menzi Primary School, Lakeside Estate Primary School, Northriding Secondary School, Lebogang Primary School, Coronationville Secondary School, Sunward Park High and Nigel Secondary School, Lyttelton Manor Primary School and Olievenhoutbosch Secondary schools. Final statements were approved for these projects.
Health infrastructure There are three projects which were successfully completed and handed over to the client on behalf of Health during the year under review. The completed projects include the construction of new Dewagensdrift Clinic situated in Cullinan under the City of Tshwane and the upgrade and renovation of psychiatric wards at Helen Joseph Psychiatric and Charlotte Maxeke Academic Hospital both in the City of Johannesburg.
Both the Mandisa Shiceka Community Day Clinic (CDC) and the Phillip Moyo Community Heath Centre (CHC) were planned to be completed during the reporting period but completion of them was not achieved due to various challenges. The Mandisa Shiceka CDC is currently at 98% completion and was not completed due to pending municipal approvals for the bulk connections while the Phillip Moyo CHC was also affected by the delay in electricity bulk connection which also affected testing and commissioning. The project is at 93% construction completion.
STARS infrastructure The Department continues to endeavour in implementing capital projects on behalf of client departments other than Education and Health. During the period under review, different projects were implemented in numerous client departments. Contractors were appointed for 75 Fox Street and Thusanong Building, and the sites were handed over on the 18 February 2020 for OHS Statutory Compliance Refurbishment of Electrical Works, Mechanical Works, Civil Works and Building Works. During the period under review, a total of 26 awards were made for maintenance of buildings.
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The Department is implementing projects on behalf of Social Development, which aims at enhancing the social cohesion for the citizens of Gauteng. As a result, Rearabilwe, Garankuwa Child Youth Care Centre (CYCC) is under construction and progress is at 95%. The project has been delayed due to non-performance by the contractor and cash flow challenges. The contractor was penalised, and the project is anticipated to be completed during the next financial year.
The Walter Sisulu CYCC is delayed due to land issues (re-zoning of the current institution and changing of the title deeds from Ekurhuleni Municipality to City of Johannesburg Municipality). These matters are being dealt with under architectural compliance projects for Social Development institutions.
The construction of the Devon Early Child Development Centre (ECDC) is still underway and the progress construction on site is at 83%, the initial completion date of 15 June 2019 could not be achieved. The contractor was granted extension of time for delays due to hard rock encountered when excavating for foundations, storm water and sewer and additional scope of work (i.e. guard house). At the Bantubonke CYCC, the project has been stopped by the Mid-Vaal Municipality due to a pending land donation agreement and approval of the sub-division application submitted. The construction progress of the Bekkersdal Social Integrated Facility (SIF) project is at 40% and there are delays in payment which resulted to the revision of completion date to the next financial year.
The Department continues to implement projects on behalf of the Department of Roads and Transport, Sports, Arts, culture and Recreation. During the period under review, a tender has been advertised for the finishing of contract at the Sebokeng Drivers Licence Testing Centre (DLTC) and is closing on 18 May 2020. The Department has shown some progress on the construction of Rust-Ter-Vaal Community Library which is at 72%. However, the construction of Akasia Community Library is still at 50% and was closed for more than a month due to non-payment of sub-contractors by the main contractor. At Boipatong Community Library, the progress is recorded at 99%, where outstanding activities are water and electrical connections. Emfuleni Municipality is assisting in this regard, since the land is not registered. The department complated the contruction of Kokosi Community Library whilst Impumelelo Community Library is still at 40% completion stage.
The Department has the responsibility of managing government facilities in the Province, which as a result involves identifying facilities which are not safe for occupation. The Department is tasked with mandate to ensure that all GPG buildings comply with OHS standards.
In the wake of the unfortunate fatal fire that broke out at the BoL building in September 2018, the Department conducted detailed condition assessments at all GPG buildings. As a result, the assessment conducted by the inspectors discovered that the fire had caused severe damage to the slabs of the burnt floors and was subsequently a structural hazard. Therefore, a decision was taken that the BoL building should be demolished.
Jet Demolition was appointed as the service provider in December 2018 to conduct the controlled demolition of the building to mitigate structural risks using the implosion method. The implosion of the BoL was successfully conducted on 24 November 2019 in a collaborative effort with the City of Joburg EMS, the JRA, the JMPD and various disaster management entities.
Facilities management The Department continues to conduct routine maintenance, soft services and the execution of maintenance projects in and around the Precinct and carries out maintenance for G-Fleet, the Department of Community Safety and the Department of Social Development.
At the beginning of financial year, a decision was taken to tender for the maintenance of Precinct buildings by clustering buildings into three clusters. The intention to cluster buildings into three categories motivated
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the reasons for the lower targets that were indicated. Due to the changes in the format of the tender and notably the shift from three clusters to a new strategy of one contractor per building, the tender process has taken a slightly longer time to finalise by 30 August 2020.
Under Health maintenance the Department strives to provide high quality and consistent maintenance services to client departments through statutory, condition based preventative maintenance and the replacement of aged and obsolete electromechanical plant and equipment to ensure uninterrupted service delivery.
While significant work has been undertaken to replace lifts and boilers at health facilities over the last few years, the focus over the next few years will be on ensuring they are more reliable and available in terms of accepted industry benchmarks, when compared to a few years ago. During the financial period, 70 statutory compliance inspections were conducted on boilers, fire-fighting equipment’s and lifts meanwhile 70 maintenance projects were completed at various Health institutions. Maintenance conducted during the year included the renovation of theatre lights, replacing chillers and air conditioners and also major services to cold rooms, amongst others.
Kopanong Precinct Project The KPP is a major GPG office portfolio within the central corridor which consists of 17 existing buildings and 1 new building. Some buildings have heritage implications. The KPP aims to create linkages between buildings to develop a spatial network which also allows for the enhancement of synergies between various GPG departments, shared resources and other spatial economies of scale.
The Department is currently navigating the Procurement terrain to which the third Treasury Approval (TAIII) will be sought by December 2020 after the bidding process is complete, as per the PPP Procurement Regulation 16. The RFP has been sent to market and the closing date for clusters 1, 3 and 4 remains 30 June 2020, until an extension is granted by the Department due to the Lockdown period the country has experienced. ‘Similarly, the closing date for Cluster 2 remains the 30 September 2020.
The Department continued to conduct guided tours per cluster to allow bidders to conduct their due diligence on the KPP buildings. The KPSC which comprises of the DID, the Gauteng Infrastructure Financing Agency (GIFA) and TA is also continuously responding to interested bidders’ questions by way of publishing Bidder’s BN on a weekly basis. Such BNs are accessed by bidders who attended the compulsory bidder Briefing Session held on 24 January 2020 via the ANSARADA platform.
The vacant buildings that comprises a portion of the KPP are currently been inspected by the OHS practitioner and the contractor will commence with works to bring the said buildings to an acceptable standard of safety for bidders to be able to access these buildings without exposing their employees to risk of harm.
Government Immovable Asset Management (GIAM) Since the Department is the custodian of all GPG’s immovable assets, it is therefore crucial for the Department to ensure that all immovable assets in the Asset Register are complete, recorded accurately and disclosed in correct values. The updating and maintaining of the Immovable Asset Register (IAR) is performed in accordance to the minimum requirements of Treasury. The areas verified and updated were deeds ownership information, user departments and vesting category changes for a total of 7 000 assets.
Non-core properties and others As the custodian of all the GPG’s immovable assets, the Department is mandated to dispose of all non-core properties. During the financial year, 137 residential properties were cleared for disposal. The disposal of non- core assets is on-going through online auction and 56 assets located in the Southern and Central region were
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taken to auction from 9 to 16 July 2019 where 19 assets were sold, 14 received bids less than the market value and consequently have to be presented to Treasury for approval and a total of 23 assets did not attract any bids.
The income generated from sale of these assets amounted R11 000 040. The next auction is anticipated to take place during the second quarter of the next financial year. Challenges that were encountered include, illegally occupied assets that requires eviction processes and the DID’s officials, bank valuers and service providers being denied access to the sold properties by tenants who refused to exercise the right of first refusal to buy the properties they are occupying.
A total of 21 portions of Farm Ekangala, owned by the GPG, have been transferred through Section 42 of the PFMA (1999, as amended) to the Gauteng Department of Human Settlements for township establishment purposes. GPG-owned land in Doornkloof in the City of Tshwane, has been presented and recommended for donation to SANRAL by the Immovable Asset Disposal Committee, for a road reserve. GPG-owned land (Driefontein) in Edenvale, has been presented and recommended for donation to Ekurhuleni Metropolitan Municipality by the Immovable Asset Disposal Committee, for the widening of Barbara and Craft roads.
Agreement of Donation for 2 Agricultural Holdings (Grootvalley) has been prepared and forwarded to the Legal Services Directorate, for scrutiny to enable donation to Trans-Caledon Tunnel Authority (on behalf of the Department of Water and Sanitation) for water-related services. Approval have been granted for the sub-division of 1 property in Diepkloof, to enable registration of transfer into the name of the purchaser, the Apostolic Faith Mission Church. Letters of Intention to acquire 47 land parcels in Dinokeng Game Reserve (on behalf of Gauteng Department of Economic Development) from the National Department of Public Works have been issued. A submission has been prepared for the valuation of erf 8455 Lenasia Extension 8. Quotations were sourced by SCM and a service provider has been recommended for approval. Green technology The Rooftop Solar PV Project (RSPP) The RSPP project is still in progress using a PPP model. The PPP process has taken over four years, due to challenges in terms of legislation for renewable energy generation. The 2010 Integrated Resource Plan (IRP 2010) did not make provision for procurement of embedded generation outside the IRP and, as a result, Ministerial determination was required to deviate from the IRP 2010. The municipalities where the solar photovoltaic are to be installed did not have processes in place for applications, to proceed with registration processes with the National Energy Regulator of South Africa (NERSA). Some of the municipalities have recently initiated processes for registering embedded generation. The recent gazette IRP 2018 is hoped that it will lessen the burden on the processes for registration with the municipalities and NERSA. The preferred has submitted application forms for registration with municipalities. They are awaiting responses to go ahead and register the projects with NERSA.
The Department, through Building Energy, has applied for the connection agreements with City of Johannesburg, Ekurhuleni, and Tshwane metros. These municipalities have not given consent letters for the project. It is critical for the project as all the major sites are in these municipalities. Building Energy has engaged with the City of Johannesburg Metro which indicated that they would install meters at the various sites and would revert to the DID through Building Energy. Tshwane Metro indicated that they were aware of the application and would revert to Building Energy, which to date has not happened. The small municipalities, namely Mogale City, Lesedi Local Municipality and Merafong Local Municipality have given consent letters to the Department. Facilities with over 1 MWp installed capacity will be subjected to the NERSA Generation License process. Once consent letters and generation licences are approved, TAIII documents will be submitted to National Treasury. After receipt of TAIII approval, the DID and GIFA will facilitate PPP agreements, following which construction will commence.
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PERFORMANCE INFORMATION PERFORMANCE INFORMATION Comment on deviations to delays in the finalisation of PEPv3 which was caused by late confirmation of scope. Willow Secondary School: Clarification of project Crescent of PEP. client department delayed the approval from of the documents. due to the interrogation New land was Soshanguve Shelter for the Vulnerable: land was invaded by community. identified as the previous Ratanda Rehabilitation Facility: The PEPv4(a) has not been approved. 5 2 Khululekani Primary School: PEPV4a was not completed due 03 No deviation. client Department Rehabilitation Facility: Delay from Tembisa 26 Deviation 2019/2020 Achievement from planned from target to Actual 1 6 21 14 *7 Actual 2019/2020 achievement National indicators Programme/Sub-programme 1 9 26 16 33 target Planned 2019/2020 Supporting Strategic Goal 2: Accelerated service delivery 0 1 36 35 22 Actual 2018/2019 achievement 6 8 5 19 15 Actual 2017/2018 achievement To contribute to the Gauteng City Region (GCR) through the delivery of Educational, Health and STARS infrastructure projects infrastructure the delivery of Educational, Health and STARS contribute to the Gauteng City Region (GCR) through To 3 63 43 17 59 2016/2017 achievement Performance indicator Actual Education Health STARS #Number of capital projects infrastructure completed within the time period agreed #Number of projects infrastructure tender for ready (designs) 2020 by 31 March PROGRAMME 2: PUBLIC WORKS PUBLIC PROGRAMME 2:
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PERFORMANCE INFORMATION PERFORMANCE INFORMATION Comment on deviations compensation events/ issues with time implications. was delayed due to Abram Hlophe Primary School: Project compensation issues/events with time implications. was delayed due to Primary School: Project Hillcrest compensation events/ issues with time implications. is contractually supposed to Secondary: Project Klipspruit West be completed on 12 April 2020. was completed late due to Secondary School: Project Westbury poor performance by the contactor. was delayed due to Malvern Primary School: Project compensation events/ issues with time implications. not completed due to poor Mogobeng Primary School: Project performance by contractor. Primary School: Compensation Event (CE) not yet Noordgesig approved. Girls High School, Laerskool Klipdrift, Lebogang Primary Aurora completed but not School and Magasela Primary were within timeframes. 12 was delayed due to Krugerlaan LSEN School: Project Deviation 2019/2020 Achievement from planned from target to Actual 7 Actual 2019/2020 achievement Programme/Sub-programme 19 target Planned 2019/2020 16 Actual 2018/2019 achievement 7 Actual 2017/2018 achievement 40 2016/2017 achievement Performance indicator Actual Education
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PERFORMANCE INFORMATION PERFORMANCE INFORMATION Comment on deviations GDOH which has financial implications. Roads and storm water still outstanding. by the municipality are wayleave approvals the from wayleave approval Mandisa Shiceka: Awaiting municipality for the bulk services. Dewagendrift Clinic: Not completed not within timeframes due to the inclusion of additional scope work. Helen Joseph Psychiatric Hospital: Not completed due to poor performance by contractor. The Charlotte Maxeke Academic Hospital was completed but not within timeframes. Akasia Library: Not completed due to delay in payments. Garankuwa CYCC: Not completed due to poor performance by contractor. Devon ECDC: Not completed within timeframes due to the client. inclusion of additional scope work from Boipatong Library: Not completed due to delay in payments. Atteridgeville Library: Not completed on time due to poor performance by contractor Operation Mabaleng, Kokosi Library and Bank of Lisbon completed but not within timeframes. were projects 5 from Compensation Event (CE approval Phillip Moyo: Awaiting 9 library: Not completed due to delays in payment. Rus-Ter-Vaal 13 Deviation 2019/2020 Achievement from planned from target to Actual 0 0 20 Actual 2019/2020 achievement Programme/Sub-programme 5 9 33 target Planned 2019/2020 2 4 30 Actual 2018/2019 achievement 6 2 19 Actual 2017/2018 achievement 6 59 13 2016/2017 achievement Performance indicator Actual #Number of capital projects infrastructure completed within agreed budget STARS Health *Disclosure note: The output for the indicator “Number of capital infrastructure projects completed within the agreed time period” has been adjusted from 15 to 7. time period” has been adjusted from completed within the agreed projects note: The output for the indicator “Number of capital infrastructure *Disclosure
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PERFORMANCE INFORMATION PERFORMANCE INFORMATION Comment on deviations compensation events/ issues with time implications. was delayed due to Abram Hlophe Primary School: Project compensation issues/events with time implications was delayed due to Primary School: Project Hillcrest compensation events/ issues with time implications. is contractually supposed to Secondary: Project Klipspruit West be completed on 12 April 2020. was delayed due to Malvern Primary School: Project compensation events/issues with time implications. not completed due to poor Mogobeng Primary School: Project performance by contractor. GDOH which has financial implications. Roads and storm water still outstanding. by the municipality are wayleave approvals the from wayleave approval Mandisa Shiceka: Awaiting municipality for the bulk services. Akasia Library: Not completed due to delay in payments. Garankuwa CYCC: Not completed due to poor performance by contractor. Devon ECDC: Not completed within time due to the inclusion client. of additional scope work from Boipatong Library: Not completed due to delay in payments. 6 was delayed due to Krugerlaan LSEN School: Project 2 from Compensation Event (CE approval Phillip Moyo: Awaiting 5 library: Not completed due to delays in payment. Rus-Ter-Vaal Deviation 2019/2020 Achievement from planned from target to Actual 3 4 13 Actual 2019/2020 achievement Programme/Sub-programme 5 9 19 target Planned 2019/2020 2 4 24 Actual 2018/2019 achievement 6 2 11 Actual 2017/2018 achievement 6 40 13 2016/2017 achievement Performance indicator Actual Health STARS Education
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PERFORMANCE INFORMATION PERFORMANCE INFORMATION Comment on deviations challenges. 2 2 No conditional assessment was conducted due to capacity 0 00 No deviation. 000 No deviation. No deviation. 00 No deviation. No deviation. Deviation 2019/2020 Achievement from planned from target to Actual 0 0 3 70 70 83 80 70 60 10 Actual 2019/2020 achievement Facility operations Programme/Sub-programme 2 2 3 70 70 83 80 70 60 10 target Planned 2019/2020 7 7 4 4 6 6 56 50 39 33 Actual 2018/2019 achievement obsolete electromechanical plant and equipment to ensure uninterrupted service delivery plant and equipment to ensure obsolete electromechanical 3 3 11 11 80 80 49 39 10 160 Actual 2017/2018 achievement ------10 10 2016/2017 applicable achievement Performance indicator Actual Strategic Objective 2.2: To provide high quality and consistent maintenance services to client Departments through statutory, condition based, preventative maintenance and the replacement of aged and maintenance and the replacement condition based, preventative statutory, high quality and consistent maintenance services to client Departments through provide Strategic Objective 2.2: To GPG buildings (STARS) Not Health #Number of planned maintenance projects by 31 March awarded Health STARS #Number of planned maintenance projects completed within the contract period agreed by 31 March Health STARS #Number of condition assessments conducted on State-owned buildings Number of statutory compliance inspections conducted (boilers, equipment’s fire-fighting and lifts)
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PERFORMANCE INFORMATION PERFORMANCE INFORMATION Comment on deviations The under-collection of revenue is caused by tenants’ resistance is caused by tenants’ resistance of revenue The under-collection obligation with most citing the poor state of to pay their rental as the reason. properties Budget for rates and taxes was adjusted to R1 084 091 535 cash flow to municipalities given their state of to allow more finances. 535)
0 00 No deviation. No deviation. 0 No deviation. 716
R5.4M Deviation 2019/2020 Achievement from planned from target to Actual (R129 9 69 60 Actual approval 2019/2020 submitted report and report Revised the Treasury for Treasury affordability affordability to Provincial to Provincial achievement feasibility and R1 084 091 535 Province specific indicators Province Programme/Sub-programme 9 69 60 target ted to proval for ap- and af- Revised submit- Planned Treasury Treasury feasibility Provincial Provincial 2019/2020 fordability fordability report and report Supporting Strategic Goal 6: Integrated planning 5 38 33 Actual Treasury Treasury R15 977 R 954 375 2018/2019 to National resubmitted resubmitted Revised fea- sibility study achievement - 5 44 39 TAI Actual 2017/2018 Submission achievement of the revised of the revised Strategic Objective 2.3: To contribute towards the re-generation of the inner city by establishing Kopanong Precinct the re-generation contribute towards Strategic Objective 2.3: To - - - - R 23M R 31M R 18M R 24 M R 18,6M Strategic Objective 6.1: To leverage the Provincial Immovable Assets Portfolio to generate revenue and meet service delivery requirements Immovable Assets Portfolio to generate revenue leverage the Provincial Strategic Objective 6.1: To obtained 2016/2017 TAI approval approval TAI achievement Performance indicator Actual Health STARS #Number of planned maintenance projects completed within agreed budget by 31 March Total amount paid to Total municipal rates and taxes bills PPP approvals received received PPP approvals National Treasury from for the Kopanong Precinct Rand value of revenue collected
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PERFORMANCE INFORMATION PERFORMANCE INFORMATION Comment on deviations CoGTA CoGTA Human settlements Office of the Premier E-governance. departments: • • • • contingent, deemed and vested. vesting categories, which are landlords of the following office accommodations: landlords for DSACR 1) 35 Rissik Street for DID 2) 18 Rissik Street for DCS Street 3) 64 Pritchard for DED 4) 124 Main Street 5) 131 Commissioner for DID. 0 No deviation. 5 the from not achieved due to the delay in signatures Target (33) added to the new assets in three Immovable assets were Deviation 2019/2020 1 x C-AMP four outstanding UAMPS for the following user are There Achievement from planned from target to Actual 3 200 Actual 2019/2020 achievement Programme/Sub-programme 8 200 target Planned 2019/2020 0 1 x C-AMP 0 6 0 Actual 2018/2019 achievement - 200 Actual U-APMs Collated Economic for 4 user 2017/2018 Education, Agriculture Health, and Information achievement department- Development, - - 161 8 274 7 010 7 036 7 000 7 033 2016/2017 achievement Performance indicator Actual #Number of immovable assets verified in the Immovable Asset Register (IAR) in accordance with the mandatory of National requirements by 31 March Treasury Number of departments with office provided accommodation through lease agreements #Custodian - Asset Management Plan (C-AMP) submitted to treasury the relevant with the in accordance GIAMA (2007) Number of non-core Number of non-core identified to properties be disposed
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Strategy to overcome areas of under performance In order to overcome the areas of non-delivery for completing the projects within time and budget and good quality, the Department continue to engage with relevant stakeholders and discouraging the client departments to add the scope while projects are in construction. The department continues to inforce proper contract managment process on poor performance by contractors. The Department also strengthened the monitoring of projects by deploying internal professional staff to serve as quality assurers. Suitable land and the client signing-off the availability of project funds are amongst the critical steps set out in the Project Readiness Matrix for projects to proceed.
To improve on the delivery of projects, the Department has been proactive in conducting continuous assessment through site visits. These visits by the MEC have assisted in unblocking challenges on issues related to municipalities, communities, service providers or client departments.
Changes to planned targets The Department has made some changes on initial targets during the year under review. These changes were amongst others, the revision of the target which relates to infrastructure project list. These changes were incorporated to include Rust-Ter-Vaal and Akasia libraries projects on the list. Other changes involved the reduction of targets on infrastructure projects, due to unavailability of land for Westonaria SIF, as well as absence of tittle deed for Walter Sisulu CYCC. Further reductions in targets were in relation to Khutsong project where the contract was terminated due to the contractor’s poor performance, as well as, community disruptions, work stoppages and delays by the client in approving CEs at Greenspark. The target for planned maintenance projects completed on time has been revised to the roll-out of the precinct projects.
Linking performance with budgets The following is a summary table of the actual expenditure in comparison to the adjusted appropriation for both the current year and previous year. The information is provided at a sub-programme level and agrees to the appropriation statement of the financial statements.
Sub-programme expenditure
2018/2019 2019/2020 Sub- programme Final Actual (Over)/under Final Actual (Over)/under name appropriation expenditure appropriation expenditure expenditure expenditure R’000 R’000 R’000 R’000 R’000 R’000
Construction 272,066 272,010 56 382 600 353 807 28 793
Maintenance 610,220 610,220 63 673 572 670 234 3 338
Immovable 1,522,756 1,519,654 3,102 1 699 270 1 698 744 527 Assets Total 2,405,042 2,401,821 3,221 2 755 442 2 722 784 32 658
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4.3 Programme 3: Expanded Public Works Programme Purpose of the Programme The purpose of the EPWP is to manage the implementation of programmes and strategies that lead to the development and empowerment of communities and contractors. This includes the provincial management and coordination of the EPWP. The EPWP is a nationwide programme aimed at the reorientation of the public- sector spending in favour of projects that create more work opportunities. Sub-programme are as follows: • Provincial Coordination • EPWP Monitoring and Evaluation • Innovation, Empowerment and Community Development.
Strategic objectives for the financial year under review • To contribute towards poverty alleviation and reducing unemployment by providing work opportunities and skills development opportunities through the EPWP. • To contribute towards the development and implementation of interventions to support the coordination of the four provincial sectors within the EPWP. • To ensure the construction sector acts as a catalyst for the development of skills, the creation of jobs and the development of sustainable communities by supporting individual beneficiaries and enterprises.
Performance indicator information The EPWP is a public employment programme that aims to provide temporary work to economically marginalised citizens between the ages of 18 and 65. The programme aims at providing an economic safety net to ensure that there is some sort of income in households to provide for basic needs. In order to make the programme more sustainable, the EPWP has looked at ways and means of an exit strategy that does not leave the participants destitute, but instead provides a means for improving their lives. The EPWP is a broader government strategy to alleviate poverty through reduction of unemployment. The programme has drawn significant numbers of the unemployed into productive work, where they acquire skills while being gainfully employed.
The end of financial period marked the termination of the Zivuseni and NYS beneficiaries’ contracts with the Department. The Department managed to provide work opportunity to more than 5 700 beneficiaries. Some of the beneficiaries were trained in different skills development. The target for the current financial year is to create 96 210 work opportunities across all sectors which is the public bodies including departments and municipalities. All public bodies have been reporting work opportunities created on the EPWP reporting system and more than 55 000 work opportunities were created by the public bodies.
The implementation of EPWP Phase IV for the next five years (2019 until 2024) has started with the objective to provide work opportunities and income support to poor and unemployed people, using labour-intensive methods in the delivery of public and community assets and services. During the next financial year, the Department plans to appoint NYS participants.
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PERFORMANCE INFORMATION PERFORMANCE INFORMATION Comment on deviations During Quarter 1 some participants were active, During Quarter 1 some participants were and numbers fluctuated in Quarter 2 due to some maternity participants coming back from leave, other being on sick leave for a long time and the deceased. The fluctuating number of participants had an impact on FTE calculated since some participant left the without informing the Department others programme came late in the year due to maternity and sick leave. the report. yet provided constraint. 0 No deviation. 1 The Department of Economic Development has not 0 No deviation. 248 No further training was undertaken due to budget (257) Deviation 2019/2020 achievement from planned from target to actual 2 4 21 252 5 757 Actual 2019/2020 achievement 4 target 2 (Non- Planned 2019/2020 cumulative) cumulative) cumulative) cumulative) Programme (Cumulative) beneficiaries and entities National specific indicators Programme/Sub-programme 2 4 21 22 (Non- Actual 2018/2019 achievement 3 4 21 2 503 4 667 1 873 5 711 (3 838) 2 047 2 294 500 (Non- Actual the programme without informing the coordinator after they have been paid. without informing the coordinator the programme 2017/2018 achievement 4 4 0 22 Not 4 644 5 355 5 247 5 500 (Non- Actual 2016/2017 Applicable achievement Supporting Strategic Goal 5: Empowering communities through job creation in partnership with the public and private sector job creation Supporting Strategic Goal 5: Empowering communities through Performance indicator Strategic Objective 5.3: To ensure the construction sector acts as a catalyst for the development of skills, the creation of jobs and the development sustainable communities by supporting individual the construction sector acts as a catalyst for development of skills, creation ensure Strategic Objective 5.3: To Strategic Objective 5.2: To contribute towards the development and implementation of interventions to support the coordination of the four provincial sectors within Expanded Public Work Programme sectors within Expanded Public Work of the four provincial the development and implementation of interventions to support coordination contribute towards Strategic Objective 5.2: To Strategic Objective 5.1: To contribute towards poverty alleviation and reducing unemployment by providing work opportunities and skills development opportunities through the Expanded Public Work the Expanded Public Work work opportunities and skills development through unemployment by providing poverty alleviation and reducing contribute towards Strategic Objective 5.1: To *Portfolio of evidence could not be available to some participants since families will be reluctant to provide the Department with (death certificate in case of deceased) and some participants will leave to provide *Portfolio of evidence could not be available to some participants since families will reluctant #Number of EPWP work opportunities 2020 by DID 31 March created #Number of Full Time Equivalents (FTEs) 2020 by the DID 31 March created #Number of beneficiary empowerment 2020 interventions by 31 March on # Number of public bodies reporting by 31 EPWP targets within the province 2020 March #Number of interventions implemented to support public bodies in the of targeted number work creation (4 sectors opportunities in the Province & Social, Environment Infrastructure, 2020 Non-State) by 31 March Number of participants trained by 31 2020 March PROGRAMME 3: EXPANDED PUBLIC WORKS PROGRAMME PUBLIC EXPANDED PROGRAMME 3:
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Strategy to overcome areas of underperformance The Department continuously engage with various sectors on a quarterly basis in order to improve the reporting of the public bodies on EPWP targets within the Province. In an effort to improve the accuracy and reliability of data, the Department will utilise the central EPWP electronic reporting system. In addition, the implementation of EPWP Phase IV for the sixth administration has started with the objective to provide work opportunities and income support to poor and unemployed people, using labour-intensive methods in the delivery of public and community assets and services, thereby contributing to development.
Changes to planned targets For the period under review, the Department made changes on the targets for public bodies reporting EPWP targets within the Province. This was due to a drive to increase public bodies participation and reporting through the IGR-MEC/MMC Stakeholder engagements and the EPWP Provincial Steering Committee Meeting, which led to the inclusion of two public bodies namely, COGTA and Economic Development. There was a decrease on the targets for work opportunities and full-time equivalents. This was due to the exit of some participants and non-recruitment of new ones into the programme. The Department has had to also reduce the target on trained participants due to limited funding.
Linking performance with budgets The following is a summary table of the actual expenditure in comparison to the adjusted appropriation for both the current year and previous year. The information is provided at a sub-programme level and agrees to the appropriation statement of the financial statements.
Sub-programme expenditure
2018/2019 2019/2020 Sub- programme Final Actual (Over)/under Final Actual (Over)/under name appropriation expenditure appropriation expenditure expenditure expenditure R’000 R’000 R’000 R’000 R’000 R’000
Programme 67,770 66,557 1,213 135 633 133 362 2 271 Support
Community 229,574 219,022 10,552 174 280 135 457 38 823 Development Total 297,344 285,579 11,765 309 913 268 819 41 094
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PERFORMANCE INFORMATION PERFORMANCE INFORMATION
5. TRANSFER PAYMENTS
There were no transfers made during the year under review. 6. CONDITIONAL GRANTS 6.1 Conditional grants and earmarked funds paid There were no conditional grants paid during the year under review.
6.2 Conditional grants and earmarked funds received The table below details the EPWP incentive grant and earmarked funds received for the period 1 April 2019 to 31 March 2020.
Conditional Grant EPWP Job Creation:
Department who transferred the grant National Treasury
Purpose of the grant Incentive Grant for job creation
Expected outputs of the grant 737 participants
Actual outputs achieved 737
Amount per amended DORA R 23, 878, 000
Amount received (R’000) R 23,878
Reasons if amount as per DORA was not received Not applicable
Amount spent by the department (R’000) R 23,878
Reasons for the funds unspent by the entity Not applicable
Reasons for deviations on performance Not applicable
Measures taken to improve performance Not applicable
Monitoring mechanism by the receiving department Monitoring is done by a team of dedicated coordinators who are placed on different corridors and sites. On a monthly basis, attendance registers are submitted as proof of attendance. Submission of IYM, and quarterly evaluation reports.
7. DONOR FUNDS 7.1 Donor funds received There were no donor funds received during the 2019/20 financial year.
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8. CAPITAL INVESTMENT 8.1 Capital investment, maintenance and asset management plan
The table below illustrates spending on capital investments for the 2019/20 financial year:
Infrastructure projects 2018/2019 2019/2020
Final Actual (Over)/under Final Actual (Over)/under appropriation expenditure expenditure appropriation expenditure expenditure ’000 R’000 R’000 R’000 R’000 R’000
New and replacement 9,250 5,499 3,751 145 267 136 698 8 569 assets
Existing infrastructure 166,336 163,805 2,531 148 093 128 206 19 887 assets
Upgrades and 33,168 15,928 17,240 10 000 10 694 (694) additions
Rehabilitation, 92,456 105,698 (13,242) 50 718 28 374 22 344 renovations and refurbishments
Maintenance and 40,712 42,179 (1,467) 87 375 88 868 (1 493) repairs
Infrastructure transfer ------Current 40,712 42,179 (1,467) 87 375 88 868 (1 493) Capital 134,874 127,125 7,749 205 985 175 766 30 219 Total 175,586 169,304 6,282 293 360 264 634 28 726
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PART C: GOVERNANCE
Governance
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Governance
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GOVERNANCE GOVERNANCE
1. INTRODUCTION
Commitment by the Department to maintain the highest standards of governance is fundamental to the management of public finances and resources. The Department has good governance structures in place to effectively, efficiently and economically utilise State resources, which is funded by the tax payer. 2. RISK MANAGEMENT
The Department has an Approved Risk Management Framework and Policy. During the year under review, the Strategic Risk Assessment and Control Risk Self Assessments (CRSAs/ Operational Risk Assessments) were conducted. In promoting good governance, the Risk Management Operational Committee is operational, has met in all four quarters and is chaired by an external independent Chairperson. The Committee provides an oversight of Governance Assurance to the Department and advises the Accounting Officer as required. Further, the Audit Committee meets to discuss departmental reports of which Risk Management is one of the discussion documents at the Audit Committee. Members of the Audit Committee on a quarterly basis provide assurance on the effectiveness of the Risk Management process in the Department. The Audit Committee further reviews progress with regards to the implementation of action plans to mitigate risks identified at a strategic or global level of the organisation. 3. FRAUD AND CORRUPTION
The Department has a Fraud Prevention Plan. Mechanisms are put in place to report fraud and corruption, and how to report such. For whistle-blowing, there is a need for officials to make confidential disclosure about suspect fraud and corruption, and any other form of reporting fraud and corruption. In addition, a toll-free number is used to reporter/whistle blow. This assists in retaining anonymity of whistle blowers. In instances where there is limited capacity, cases are forwarded to Gauteng Treasury for assistance with investigations. 4. MINIMISING CONFLICT OF INTEREST
The Department has put mechanisms in place for employees who may want to apply for Remuneration of work outside the Public Service. A register has been developed for all employees that have been granted permission by the Accounting Officer together with applications that were not successful.
As per the Public Service Regulations, the Department conducts analysis for disclosure of financial interest aimed at identifying conflict of interest based on submissions by other categories (Level 12 and below). 5. CODE OF CONDUCT
It is a requirement for officials in SCM to enter into agreements to abide with the Code of Conduct. The officials are also required to sign the Declaration of Secrecy. The Code of Conduct is a pledge to perform duties with integrity. The integrity covers issues of confidentiality, combating of fraud and corruption. 6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES
The Department as the custodian of GPG fixed assets, due to staff complaints, initiated a project to assess conditions of all occupied GPG buildings. The project was intended to establish baseline condition and to inform on nature and structure of intervention required. The findings of the project were adverse and alluded to varied non-compliances. This coupled with the coincidental fire incident at the Bank of Lisbon building necessitated in reconstitution of the project into three phases. The phases were comprised of Phase
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1 - Condition Assessment, Phase 2 - Emergency OHS compliance which has been concluded and Phase 3 - Implementation of medium- to long-term intervention as per the condition assessments reports and maintenance. To update on progress made to address accommodation challenges.
Successful and sustainable OHS compliance is dependent on competence and consciousness of all role players in the work environment. To date, the GPG rolled out training to orientate all staff on OHS. Training roll-out is phased and started with general OHS knowledge orientation, and subsequent phases will encompass specialised aspects that include amongst others, training for committees, fire marshals, first aiders, etc. Training was offered through Gauteng City Region Academy.
OHS compliance is a legislated requirement and is critical for the creation and maintenance of healthy, safe and sustainable working environments. The provision of adequate and suitable office accommodation that will enable the uninterrupted delivery of services is now a high priority. Elevation of OHS matters and compliance is central and fundamental in the employer employee relations improvement and sustainability. For continuous oversight and improvements on OHS, across the Province, it is critical that OHS governance structures and monitoring mechanisms are put in place.
For a successful and sustainable OHS compliance to be realised, in line with the OHS Act, governance structures must be established and functional. All HODs were issued with letters reminding them of their role as per section 16.1 of the OHS Act and to assign them role to be part of the GPG OHS structure chaired by the MEC. 7. PORTFOLIO COMMITTEES
During the reporting period, the Department attended the meetings that are indicated below, as requested by the Infrastructure Portfolio Committee. The Department delegations that attended the meetings were led by the MEC, who was accompanied by the Accounting Officer and other Executive Managers of the Department. The Department responded to questions that were raised by the Portfolio Committee both at the meetings, and in other instances, written responses were submitted to the Committee. The dates of the meeting are outlined below:
DATES OF INFRASTRUCTURE PORTFOLIO COMMITTEE (IPC)’s DID’S RESPONSE TO AGENDA ITEMS MEETINGS AGENDA ITEMS
12 July 2019 Presentation on the fourth quarterly report of The meeting was postponed, and the agenda items were the 2018/19 financial year deferred to the Infrastructure Portfolio Committee (IPC)’s meeting scheduled for 19 July 2019. Presentation on the Budget Vote report of the 2019/20
Presentation on the projects in the Vaal area
19 July 2019 Presentation on the Suikerbosrand Water Meeting agenda items were substituted by those of the line project progress and the progress on the meeting for 12 July 2019 that was postponed. payment to service providers
Progress on the Kokosi Library and the new Kekanastaad Clinic
Suikerbosrand water line project site visit
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
61 PART C PART C
GOVERNANCE GOVERNANCE
DATES OF INFRASTRUCTURE PORTFOLIO COMMITTEE (IPC)’s DID’S RESPONSE TO AGENDA ITEMS MEETINGS AGENDA ITEMS
19 July 2019 Presentation on the fourth quarterly report of The DID made a presentation on its fourth quarter the 2018/19 financial year (2018/19) performance.
Presentation on the Budget Vote report of the The Department made a presentation on its 2019/20 2019/20 Budget Vote.
Presentation on the projects in the Vaal area The Department made a presentation on the projects on the Vaal area.
SCM bidding processes The Department made a presentation to the IPC on the Tender process, as well as the RFQ process. The Sub-contracting presentation also explained the requirements and processes regarding sub-contracting.
Contractor Incubation Programme – List of The Department provided the details of the contractors contractors in Vaal area who benefitted from the CIP in the Vaal area, as well as the amounts involved.
25 July 2019 Finetown Clinic project progress report The Department made a presentation on the progress with the Finetown Clinic Project.
Akasia Library project progress report The Department made a presentation on the progress with the Akasia Clinic Project.
30 August 2019 Suikerbosrand - DARD and DID progress report The Department submitted a presentation on the progress and payment of contractors presentations on Suikerbosrand, including payment of service providers such as Lumacon Air Conditioning and Shatsane Systems.
Quarter 1 (2019/20) Performance Report The Department did a presentation on its first quarter (2019/20) performance.
13 September Presentation to Health Portfolio Committee on The Department did a presentation to the Health Portfolio 2019 progress with all projects for Department of Committee on progress with all projects for Department of Health, both CAPEX and maintenance Health, both CAPEX and maintenance.
22 October DID’s 5-Year Strategic Plan The meeting was postponed. 2019
7 November DID’s 5-Year Strategic Plan The meeting was postponed. 2019
14 November DID’s 2018/19 Annual Report The Department did a presentation on DID’s 2018/19 2019 Annual Report.
Quarter 2 Performance Report The Department did a presentation on Quarter 2 Performance Report
DID’s 5- Year Strategic Plan The Department did a presentation on DID’s 5-Year Strategic Plan.
EPWP – Zivuseni and NYS This agenda item was deferred.
21 November Focus Intervention Study Meeting with DID and The meeting took place with the researcher of the IPC 2019 municipalities where the Focus Intervention Study was discussed.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
62 PART C PART C
GOVERNANCE GOVERNANCE
DATES OF INFRASTRUCTURE PORTFOLIO COMMITTEE (IPC)’s DID’S RESPONSE TO AGENDA ITEMS MEETINGS AGENDA ITEMS
14 February Projects implemented on behalf of client The Department did a presentation on projects 2020 departments implemented on behalf of client departments.
Provincial properties and vacant land The Department did a presentation on provincial properties and vacant land.
Presentation on the suspension of the EPWP The Department did a presentation on the EPWP.
2 March 2020 Kopanong Precinct Project The Department did a presentation on the Kopanong Precinct Project.
Caravan Park – Vaaldam Nature Reserve The Department did a presentation on the Vaaldam Nature Reserve.
3 March 2020 Quarter 3 Performance Report The Department did a presentation on DID’s third quarter Performance Report.
Boipatong Library The Department did a presentation on the Boipatong Library.
13 March 2020 IPC presentation on Provincial Infrastructure and Municipal Services for enhanced Project Management – Bantu Bonke ECD Project
20 March 2020 Nokuthula LSEN School Project The Department did a presentation on Nokuthula LSEN School Project.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
63 PART C PART C
GOVERNANCE GOVERNANCE Yes Yes (YES/NO) RESOLVED RESOLVED 78% R’000 164 424 751 093 586 669 Quarter 2 97% R’000 25 218 888 704 863 486 Quarter 1 RESPONSE BY THE DEPARTMENT Description % spent against the budget Budget - Vote - Vote Actual Expenditure Over/(under) Expenditure The Department notes the recommendation and will ensure that performance and consequence and will ensure The Department notes the recommendation report. in the next progress will be provided regard management is indeed intensified. An update in this plan that is linked to the budget a procurement the Department prepares At the start of financial year, items that ensure to plan procurement the to compared are managers, by made are that requisitions all and Provincial (through plan. Since the National Treasury included in the initial procurement were to be procured has been a number of strategies there under-expenditure, the Department to curb over-and requires Treasury) to telecommunication, (Opex) contracts relating of operational expenditure implemented, such as the review the to have improved etc. and this has proven on leased building tariffs, re-negotiations contracts on security, items. expenditure across cost containment measures to the mandate of implementing effective adherence reviewing constantly is Department the measures, containment cost of implementation the above and Over also monthly are there of the performance targets. Furthermore, the budget performance, including reviewing are achieved performance where reviews, performance quarterly as well as sittings, Committee Budget against set targets. measured The table below provides a summary of the 2019/20 budget allocated per quarter and expenditure incurred incurred a summary of the 2019/20 budget allocated per quarter and expenditure The table below provides is an indication of the departmental performance. spent per quarter, over the period. The percentage DETAILS That the Department must apply Regulation 12 in all Treasury and intensify performance entirety, consequence management processes to mitigate instances of findings on Committee the and provide lawsuits detailing the report with a progress put in of the measures effectiveness this every quarter and place to address of June end the until up continuing 2020. That the Department must implement to prevent measures control proper and provide budget over-commitment report the Committee with a progress of those effectiveness the detailing every quarter and continuing measures up until the end of June 2020. SUBJECT Material uncertainties Payables not recognised ST 1. 2. NO.
RESOLUTION 8. 2019. Report on the Financial Statements and Performance Information of DID for year ended 31 March Report on the Auditor-General’s The SCOPA RESOLUTIONS (SCOPA) ACCOUNTS ANDING COMMITTEE ON PUBLIC
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
64 PART C PART C
GOVERNANCE GOVERNANCE Yes (YES/NO) RESOLVED RESOLVED paid % of invoice R52 845 R178 828 R231 673 of accrual Balance Total Total R74 411 made R178 828 R253 239 payments Quarter 1 R’000 Quarter 2 R’000 0 97 658 0 100% made during Payment Q3 R’000 R’000 R138 097 R382 142 R520 239 Accruals 2018/19 made during Payment Q2 R’000 RESPONSE BY THE DEPARTMENT Q1 R’000 made during Payment 40 439 21 803 18 636 0 40 439 0 100% 520 239 383 443 19 275 24 489 427 207 93 032 82% 2018/19 Description Type of serviceType Accrual Good & Services 97 658 97 658 0 Capital assets Rates and taxesTotal 382 142 263 982 639 24 489 289 110 93 032 76% Budget - Vote Actual Expenditure - Vote Actual Expenditure Total Based on the table above, the expenditure incurred in both the first and the second quarters are within the in both the first and second quarters are incurred Based on the table above, expenditure on a monthly basis. Part of the report, budget. The Department will continue to monitor expenditure provide to expected are managers budget, whilst against the expenditure actual a comparison of includes the Budget Unit is made any commitment Before an acceptable level. beyond are for all variances that reasons always confirms available budget. with an accrual balance of R520 239 000 and in the first quarter The Department closed at year-end is based on the to R253 239 and in the second quarter R231 673. This reduction balance was reduced implementation of cost containment measures. The budget baseline of the Department has always been structured to be biased in prioritising the programmes to be biased in prioritising the programmes The budget baseline of the Department has always been structured 3 and Programme 2 (Public Works) mandate of the organisation, namely Programme that support the core one financial year to the will not be any invoices accrued from does not mean there (EPWP). This however, would accrue into the following financial during the month of March, In the main, invoices received other. these balances, both in quantity and Rands. to reduce The Department has worked hard year. sign good a is which expenditure, unauthorised any incurred not has Department the above, the to addition In performance the expenditure that the budget is well-managed against performance, since management reviews made on the balance of accruals per quarter: progress on monthly basis. Below is a table reflecting DETAILS That the Department must take steps to and appropriate effective payables and implement prevent consequence management against the voted exceeding for officials funds of R16 034 000 the voted by R408 funds to be surrendered have 852 000 which would therefore expenditure unauthorised constituted with Committee the provide and detailing the report a progress put in of the measures effectiveness place every quarter and continuing up until the end of June 2020. SUBJECT Payables not recognised 3. NO. RESOLUTION
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
65 PART C PART C
GOVERNANCE GOVERNANCE Yes Yes (YES/NO) RESOLVED RESOLVED RESPONSE BY THE DEPARTMENT Based on the table above, it is evident that the Department managed to pay all accruals related to prior year, to prior year, Based on the table above, it is evident that Department managed to pay all accruals related adjustments. verification and possible tariff to rates and taxes, as this requires except for payments that related to rates and taxes, commitment has the bulk of balance relating Out of the R520 million accruals reported, Thus, as at December 2019 the and fourth quarter. this balance during the third been made to reduce already paid 82% of the accruals for rates and taxes. Department has already at the to performance is collected, collated, analysed and stored portfolio of evidence in relation A proper form and collected manually and in electronic The documents are end of each quarter the financial year. on training arranged also has Department the storage, data of the process strengthen To safely. stored are Department to be storage of information enables the employees. The proper for its document management such as, the Office of Auditor-General, to oversight structures records accurate and relevant able to produce evidence also needed. Storage of appropriate Gauteng Audit Services and others, when they are Legislature, information on the achievement of targets and those not achieved by reliable enables the Department to report on with progress the Committee to provide In an effort of non-delivery. on areas further substantiating evidence has been highlights that progress management system, the Department of the performance the effectiveness an electronic 3. The Department has introduced made on bottleneck performance indicators in Programme as well the calculation of of work opportunities created, reporting system that aims to improve reporting Full-time Equivalents (FTEs). DETAILS That the Department must take steps to and appropriate effective payables and implement prevent consequence management against the voted exceeding for officials funds of R16 034 000 the voted by R408 funds to be surrendered have 852 000 which would therefore expenditure unauthorised constituted with Committee the provide and detailing the report a progress put in of the measures effectiveness place every quarter and continuing up until the end of June 2020. That the Department must develop and implement an adequate performance management system to to enable reliable maintain records on the achievement of reporting the Committee targets and provide detailing report with a progress of performance the effectiveness management system every quarter and continuing up until the end of June 2020. SUBJECT Payables not recognised Predetermined objectives 3. 4. NO. RESOLUTION
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
66 PART C PART C
GOVERNANCE GOVERNANCE Yes (YES/NO) RESOLVED RESOLVED The Outcome: RESPONSE BY THE DEPARTMENT investigation revealed that no employee can be held accountable due to the fact contract, which investigation revealed and it has since been operating on a had expired into with various security service providers, was entered security firms to source process month-to-month basis. The Department has initiated a new procurement under the custodianship of Department and that services at various properties guarding to provide has yet to be concluded. process of Goods and Services, by utilising the transactions for the procurement The investigations regarding employees will be subjected to a method have been concluded. Outcome: Two RFQ procurement to comply with SCM processes. failure from resulting departmental disciplinary hearing process, investigations such that envisaged is it and progress in are Orders Variation to relating investigations The will be concluded by end of February 2020. The investigation regarding the month-to-month security contracts have been concluded. been have contracts security month-to-month the regarding investigation The • • instances of non-compliance to rules, were there that where The Department would also like to report to institute disciplinary action against measures guidelines and prescripts, and other procurement regulations employees have been initiated by the departmental Labour Relations Unit. the responsible the Department did not incur expenditure, irregular implemented regarding measures Based on the control that of the multi-year contracts and month-to-month to date, apart from expenditure any new irregular effect and has a carry-through made irregularly were years’ commitments contract. Some previous security prior to the end of a contract also has huge and unaffordable completed. Termination are until the projects financial implications. The R5,982 million The tender advertised and adjudicated for security services has not yielded expected results. related to SCM on the extension of scope for lease expenditure is one of the findings raised on irregular when an extension of lease was occurred by the DID, amongst other things. The irregularity contract entered or knowledge of the DID. The without approval into between Department of Health and the landlord, entered of investigation will be investigating the issue and it is anticipated that process Department is currently completed by the end of February 2020. risk management strategies, on matters of governanceimproved Improvement within the organisation through as well monitoring and evaluation of the business units’ performance, has assisted Department in The annual condonement of month-to-month accounts has is prevented. expenditure ensuring that irregular expenditure. the balance of irregular reduced The Department has, thorough its Risk Management Unit, initiated investigations on irregular expenditure expenditure irregular on investigations initiated Unit, Management Risk its thorough has, Department The varied from expenditure The transactions that constituted irregular during the 2018/19 financial year. incurred of Goods and procurement Orders, basis, Variation on a month-to-month operating currently are contracts that the following can be noted: method. Thus far, Services and the utilisation of RFQ procurement • DETAILS That the Department must intensify the implementation of performance and consequence management to eliminate findings on processes and provides expenditure irregular report the Committee with a progress measures of effectiveness the detailing challenges put in place to address every expenditure to irregular relating quarter and continuing up until the end of June 2020. SUBJECT Annual financial statement 5. NO. RESOLUTION
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
67 PART C PART C
GOVERNANCE GOVERNANCE Yes (YES/NO) RESOLVED RESOLVED 3 1 14 10 findings raised Quarter 2 – Number 5 1 18 12 findings raised Quarter 1 – Number of RESPONSE BY THE DEPARTMENT Description Review of asset management General accounting Review of the financial statement Total Overall, the Department has managed to reduce the number of findings from 18 to 14. The finalisation of the number of findings from Overall, the Department has managed to reduce the annual financial statements coincides with first quarter interim statements. Much attention the time for is given to the annual financial statement and finalisation of audit this compromise the Department of the first quarter interim financial statements. During second quarter, the preparation as findings of the first Treasury raised by the Provincial on the matters that were managed to focus more that in the second quarter they do not repeat. to ensure quarter, sections 40 and maintain the quality of interim financial statements, Department prepares improve To or schedule the of part forms reports These Treasury. Provincial to submission for basis, monthly a on reports the interim financial statement. work that will be used to prepare On a quarterly basis, the Department prepares interim financial statements to eliminate the possible errors or interim financial statements to eliminate the possible errors On a quarterly basis, the Department prepares gives Management of annual financial statements. This process mistakes that may occur during the preparation some level of assurance that the annual financial statements will be accurate and Treasury and Provincial it is submitted to Management, Internal Control prepared, complete. Once the interim financial statements are process submission to the Audit Committee. During review before for review Treasury Unit and Provincial based on the audit assertion that develop audit procedures Treasury both InternalUnit and Provincial Control will be able to assist them in identifying any material misstatement that have impact on the interim financial statement. that were the finance controls time-to-time the Finance Unit, together with Internalreview From Control of the financial statements and determine as to whether process implemented during the preparation made by Internal Based on the review Control working as intended, to detect any material error. are controls on the findings has been a significant improvement quarter 1 to 2 there from Treasury and Provincial Treasury: Provincial teams. Below please find the number of findings raised by raised by all review DETAILS That the Department must implement the to review adequate processes annual financial statements to ensure accuracy and completeness the Committee with a progress provide detailing the effectiveness report every quarter and of the processes continuing until the end of June 2020. SUBJECT Annual financial statements 6. NO. RESOLUTION
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
68 PART C PART C
GOVERNANCE GOVERNANCE Yes (YES/NO) RESOLVED RESOLVED Compliance % DAYS PAID > 30 PAID DAYS PAID < 30 PAID PAID QTY INVOICES TOTAL TOTAL BE PROCESSED DOCUMENTS TO RESPONSE BY THE DEPARTMENT NEW RECEIVED DOCUMENTS 742599730 739671 626551 1 481 800435 1 225 898 785370 1 530 780 1 085 353 1 569 387 1 229 788 1 331 313 398 1 520 924 527 1 599 40 745 695 49% 996 261 635 960 229 89% 898 67% 110 850 75% 98 110 85% 90% 89% 1 348 519 1 867 1 001 5295 446 472 6 676 53% 12 122 6 552 4 834 1 718 74% DOCUMENTS PERIOD OPENING Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 YTD The Department has, since the last report of the Auditor-General, migrated from manual submission of invoices migrated from of the Auditor-General, The Department has, since the last report payments. Below please find the turnaround time of processing to e-invoicing, with the aim of improving to 30-day payments. with regard quarterly reports was achievement for lower reason and the achieve 57% managed to Department the quarter, the first During of The improvement to prior year. budget that was utilised to settle invoices related of current as a result was due to the fact that second quarter cash allocation used 57% to 76% in the second quarter, the quarter the Department introduced During the third to the second quarter only. pay for invoices related to 89%. is an overall improvement e-invoicing system, hence there used specifically to pay for certain that funds are Some of the budget items have been ring-fenced to ensure of 30-day payments. has been an overall improvement since there in positive results items and this has resulted now submitted electronically. since all invoices are It is anticipated that this will continue until financial year-end, DETAILS That the Department must implement that to ensure controls appropriate paid within 30 days invoices are Regulation by Treasury as required the Committee 8.2.3 and provide detailing the report with a progress every quarter of controls effectiveness and continuing up until the end of June 2020. SUBJECT Expenditure Expenditure management 7. NO. RESOLUTION
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
69 PART C PART C
GOVERNANCE GOVERNANCE Yes Yes Yes Yes (YES/NO) RESOLVED RESOLVED RESPONSE BY THE DEPARTMENT The SCM/quotation processes are implemented in accordance with the applicable Legislative Framework that implemented in accordance are The SCM/quotation processes for Standard and the (2017) PPPFA in the contained governsdirectives others, the amongst This include, SCM. Act Management Finance the Public besides (SIPDM), and Management Delivery Procurement, Infrastructure such favours the historically disadvantaged groups, Regulations. The PPPFA (1999, as amended) and Treasury as Black-, women-, PwD- or youth-owned companies. in relation compliance monitors and reviews Department indeed no. 4 above, the to response to the Further in this regard to requirements adherence to the Performance Management System. The Department ensures Department the governance.good Furthermore, promote to bodies oversight various the to reports and meetings, as well Broad meetings, Senior Management Team Executive Management Team holds regular of the members and responsibilities meetings. The composition, as well the roles Management Team charters. The Charters focus especially on the internalthat guided by approved oversight roles these teams, are relation review and monitoring functions in the Department, to the regard have to fulfil with these structures to performance management. and business structure current – of SCM (diagnosis stream SCM work a commissioned has Department The etc.) to perform an impact assessment. This is still work what else needs to be improved; operations processes; review the require will also The process report will be issued on completion of this process. The final in progress. and/or and job functions of employees in SCM, as well review responsibilities of the organisational structure, plan is scheduled for completion The implementation of the project policies and processes. updates of related made in this regard. will be constant monitoring of progress by November 2020 and there Plan Maintenance Technology Information an implement will Department The noted. is recommendation The in future. on the progress and report DETAILS That the Department must review That the Department must review and monitor compliance with PPR, and amended) as (1999, PFMA Regulation. Evaluate SCM/ Treasury fairly as per quotation process quotation specifications and provide the Committee with a progress of detailing the effectiveness report the compliance with PPR, PFMA and Regulation every quarter and Treasury of June end the until up continuing 2020. That the Department must review and monitor compliance applicable the Committee legislation and provide detailing the report with a progress put in place of measures effectiveness on the implementation and progress of the Performance management system every quarter and continuing up until the end of June 2020. That the Department must conduct the impact evaluation assessment with Committee the provide and and report a quarterly progress of June end the until up continuing 2020. That the Department must implement information technology controls the provide and plan maintenance report Committee with a progress of the detailing the effectiveness maintenance plan every quarter and continuing up until finalisation thereof. SUBJECT Procurement Procurement management Leadership, financial and performance management Procurement Management Information Technology controls 8. 9. 10. 11. NO. RESOLUTION
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
70 PART C PART C
GOVERNANCE GOVERNANCE
9. PRIOR MODIFICATIONS TO AUDIT REPORTS
The Department has established an internal control function to ensure effective and efficient management of audit queries and implementation of action plans to respond and address audit queries/control weaknesses raised by the Auditor-General.
The following table illustrates prior modifications to audit reports
Nature of qualification, disclaimer, adverse opinion and Financial year in Progress made in clearing / resolving the matter matters of non-compliance which it first arose
Sufficient appropriate audit evidence could not be 2017/18 The EPWP Audit Steering Committee was established obtained in some instances while in other cases the to continuously deal with the internal control supporting evidence provided did not agree to the weaknesses identified during the audit. Internal reported achievement on the number of full-time Control unit conducted quarterly reviews of reported equivalents (FTE) created. targets against portfolio of evidence.
The financial statements submitted for auditing 2013/14 The Department has significantly reduced the number were not prepared in accordance with the prescribed of material misstatements reported over the years financial reporting framework as required by section through the assistance of the provincial treasury. 40(1)(b) of the PFMA (1999, as amended). Material misstatements of some disclosure items identified by the auditors in the submitted financial statements were corrected, resulting in the financial statements receiving an unqualified audit opinion.
Some contractual obligations and money owed by 2013/14 A new payment process was introduced during the first the department were not settled within 30 days or an quarter which assisted the department in streamlining agreed period, as required by section 38(1)(f) of the the payment process. Additional controls have been PFMA (1999, as amended) and Treasury Regulation put in place to restrict procurement of goods and 8.2.3. services where the department is experiencing budget pressures. In addition, the department has significantly reduced the balance of accruals it carried through from the 2018/19 financial year.
Effective and appropriate steps were not taken to 2013/14 Monthly compliance reviews were conducted prevent irregular expenditure amounting to R149 940 through internal control function to ensure that the 000, as disclosed in note 23 to the financial statements, department complies with procurement regulations. as required by section 38(1)(c)(ii) of the PFMA (1999, This process has assisted the Department in ensuring as amended) and Treasury Regulation 9.1.1. that non-compliance is detected and corrected early. 10. INTERNAL CONTROL UNIT
The Internal Control function is responsible for maintaining effective governance frameworks, setting the tone for effective internal control environment, creation of compliance driven culture within Department, and developing action plans to address internal control deficiencies which may hamper achievement of the Department’s objectives.
During the 2019/20 financial year, the Internal Control Unit assisted the department in developing and implementing audit action plans designed to strength internal control processes relating to financial reporting, supply chain management, and performance management in response to findings and recommendations of the Auditor-General and Internal audit. The following internal control assessments were also conducted: • Assessment of integrity and reliability of financial and non-financial reports. • Quarterly reviews of the integrity and reliability of financial and non-financial reports. • Compliance reviews with all applicable legislations, policies and procedures. • Maintaining a formal process for dealing with irregular, fruitless and wasteful expenditure.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
71 PART C PART C
GOVERNANCE GOVERNANCE
11. INTERNAL AUDIT AND AUDIT COMMITTEES
The Audit Committee’s function is primarily to assist the Accounting Officer in discharging his responsibilities relative to the PFMA (1999, as amended). Its terms of reference are clearly stated in the Audit Committee Charter. The Committee has been so constituted, as to ensure its independence, with four external members.
The table below discloses relevant information on the audit committee members:
Name Qualifications Internal or If internal, Date Date No. of external position appointed resigned meetings in the attended department
Stanley • Africa’s Directors Programme External - 01 March Current Ngobeni • Master of Business Administration 2019 • Master of Commerce in International and Domestic Taxation • B. Accounting Science (Hons) • B. Com- Accounting • Higher Diploma in Computer Auditing • Registered Government Auditor (SA) • Professional Accountant (SA) • Professional Internal Auditor (SA)
George • Chartered Accountant (SA) External - 01 Current Higgins • B. Com (Hons) September • B. Com 2016 • Higher Diploma in Auditing • Registered Auditor
Given • Chartered Accountant (SA) External - 01 March Current Sibiya • B. Com 2019 • B. Acc • Postgraduate Diploma in Accountancy • Certificate in the Theory and Practice of Auditing • ABASA Executive Leadership Development Programme 12. AUDIT COMMITTEE REPORT GAUTENG PROVINCIAL GOVERNMENT (GPG) Report of the Audit Committee – Cluster 04 Gauteng Department of Infrastructure Development We are pleased to present our report for the financial year ended 31 March 2020. Audit Committee and Attendance The Audit Committee consists of the external Members listed hereunder and is required to meet a minimum of at least two times per annum as per provisions of the Public Finance Management Act (PFMA). In terms of the approved Terms of Reference (GPG Audit Committee Charter), five meetings were held during the current year, i.e. three meetings to consider the Quarterly Performance Reporting (financial and non-financial) and two meetings to review and discuss the Annual Financial Statements and the Auditor-General of South Africa’s (AGSA) Audit and Management Reports.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
72 PART C PART C
GOVERNANCE GOVERNANCE
Non-Executive Members
Name of Member Number of Meetings attended
Mr. Stanley Ngobeni (Chairperson) 04 (Appointed 01 March 2018)
Mr. Vishnu Naicker (Chairperson) 01 (Appointed 11 August 2020)
Mr. George Higgins 05 (Appointed 01 September 2016)
Ms. Given Sibiya 04 (Appointed 01 March 2018 - term expired)
Ms. Mmathebe Moja 01 (Appointed 11 August 2020)
Executive Members In terms of the GPG Audit Committee Charter, officials listed hereunder are obliged to attend meetings of the Audit Committee:
Compulsory Attendees Number of Meetings Attended
Mr. Bethuel Netshiswinzhe (Former-Accounting Officer) 02
Mr. Richard Makhumisani (Acting Accounting Officer) 02
Mr. Rannoi Sedumo (Former-Chief Financial Officer) 01
Mr. Trevor Tabane (Acting Chief Financial Officer) 02
Mr. Rhulani Phelembe (Chief Risk Officer) 05
Mr. Kweyama Velile (Chief Audit Executive) 05
The Audit Committee is satisfied that the Department adhered to the provisions of the GPG Audit Committee Charter.
The members of the audit committee held meetings with the accounting officer, senior management of the department, internal audit function and the Auditor-General of South Africa (AGSA) collectively and individually, on matters related to governance, internal control and risk in the department, throughout the reporting period. The Chairperson also held a meeting with the honourable member of the executive committee Ms. T Motara to report on governance, internal control, risk, performance and financial information and other relevant matters concerning the department. Events after the reporting date The Covid19 pandemic impacted on the audit committee’s operations after the financial year end of 31 March 2020. Social distancing, lock down regulations together with the amended legislative timeframes for annual report submission impacted the operations of the audit committee, internal audit and external audit on the timeframes when annual financial statements and annual performance information would be prepared by the departments, desk reviewed by the Office of the Provincial Accountant-General and audited by the AGSA.
The audit committee welcomed initiatives by the Department, internal audit, external audit and audit committee members assisted by Gauteng Provincial Treasury to go digital in an effort to continue with the compilation of the annual report, desk reviews, audit processes and oversight responsibilities.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
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Audit Committee Responsibility The Audit Committee reports that it has complied with its responsibilities arising from section 38(1)(a) of the PFMA 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. The effectiveness of internal control The Audit Committee acknowledges management’s efforts to strengthen internal controls in the Department. From the various reports of the internal auditors, management and audit reports of the Auditor General of South Africa, it was noted that matters were reported indicating deficiencies in the system of internal controls in areas pertaining to financial reporting, asset management, reporting on pre-determined objectives and compliance with laws and regulations and in some cases resulted on repeat findings.
In some instances, the system on internal control for the period under review was found to be adequate but ineffective and there is room for improvement in so far as addressing internal audit findings timeously and implementation of consequence management. Some of the issues/concerns raised by Internal Audit during year were raised by the AGSA, The Audit Committee is of the view that management should continue strengthening the internal control environment with the development and implementation of systems across the internal control universe. Management should also improve its financial reporting controls to ensure that risks of material misstatement to the financial statements are minimised. Information and Communication Technology (ICT) Governance The Audit Committee notes the Auditor- Generals around ICT governance, business continuity and the adequacy and effectiveness of the ICT controls to the Audit Committee. The Department has been instructed to ensure that significant attention is allocated to resolving these deficiencies in the next financial year. Internal Audit The Accounting Officer is obliged, in terms of the PFMA, to ensure that the Department has a system of internal audit under the control and direction of the Audit Committee. In the case of the Gauteng Provincial Government (GPG), the Internal Audit Function is shared amongst Entities and departments in the Province.
The Internal Audit team managed to execute and complete substantial all original approved risk- based audit projects within the allocated budget hours and timeframes. The Audit Committee is satisfied that the Internal Audit plan represents a clear alignment with the key risks, has adequate information systems coverage, and a good balance across the different categories of audits, i.e. risk-based, mandatory, performance, computer and follow-up audits.
The coordination of efforts between internal audit and AGSA have been enhanced further during the year in the provision of assurance services. The Committee believes this is an important step towards a fully effective combined assurance system.
It was noted that a Quality Assurance Review (external assessment) was performed by an external independent reviewer during the year and Internal Audit was assessed to be Generally Conformant with the International Standards for Professional Practice of Internal Auditing.
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The Audit Committee will continue to monitor the capacity and the resources allocated to the Internal Audit function. Risk Management The Audit Committee is responsible for the oversight of the risk management function. The risk management committee reports to the audit committee on the department’s management of risk. The committee has reviewed the risk register and the reports from the risk committee and is generally satisfied with the maturity level of the risk management process, however improvements to processes and policies to address the key risk exposures to the Department is still required.
Management should continue to take full responsibility for the entire Enterprise Risk Management Process and continue to support the Chief Risk Officer to even further enhance the performance of the Department. The Audit Committee would like to see the continued improvement in the maturity of risk management. Performance Management The review of effectiveness and functionality of the performance management system (which includes analysis of management prepared quarterly performance reports and related internal audit reports) by Audit Committee revealed a need to strengthen current performance management and reporting system.
The Audit Committee notes that the AGSA has raised a finding on the lack of proper monitoring of processing controls to ensure that the reported performance information is complete and accurate, despite the improvements made on last year’s outcome. The quality of quarterly reports submitted in terms of the PFMA and the Division of Revenue Act The Audit Committee reviewed the quality, accuracy, uselessness, reliability and appropriateness of quarterly and annual financial reporting and the Audit Committee is satisfied with the content and quality of financial and non-financial quarterly reports prepared and submitted by the Accounting Officer of the department during the year under review and confirms that the reports were in compliance with the statutory reporting framework. The Audit Committee would like to commend the department for reporting monthly and quarterly to Treasury as is required by the PFMA. The Audit Committee recommends that the department ensure better compliance with section 40(1) of the PFMA, in so far as management’s review and monitoring of financial reports and performance information reports. Compliance with the relevant laws and regulations A number of non-compliance with the enabling laws and regulations were noted by Audit Committee, Management, Internal Audit and AGSA during the year. As result, the Audit Committee recommended development and implementation of an effective compliance management system with an objective of addressing the issues of non-compliance with laws and regulations. Forensic Investigations Investigations into alleged financial irregularities, financial misconduct and fraud were completed during the year under review. Certain investigations are still in the process of finalisation. Various measures were recommended including taking action against the identified officials and this was in the process of finalisation. The recommendations are at various stages of implementation.
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Evaluation of Annual Financial Statements The Audit Committee undertook the following activities related to Annual Financial Statements: • Audit Committee reviewed the draft annual financial statements prepared by the department before the submission of the annual financial statements to the external auditors for audit the audit committee meeting held on 19 June 2020 and recommended them for audit. • Reviewed and discussed the following matters relating to the audited Annual Financial Statements to be included in the Annual Report, with the AGSA and the Accounting Officer: {{ Significant financial reporting judgements and estimates contained in the annual financial statements. {{ Clarity and completeness of disclosures and whether disclosures made have been set properly in context. {{ Quality and acceptability of, and any changes in, accounting policies and practices. {{ Compliance with Modified Cash Standards and the PFMA requirements. {{ Significant adjustments and/or unadjusted differences resulting from the audit. {{ Reflection of unusual circumstances or events and management’s explanation for the accounting treatment adopted. {{ Reasons for budget variations {{ Reasons for major year-on-year fluctuations. {{ The basis for the going concern assumption, including any financial sustainability risks and issues. • Reviewed the Audit Report of the AGSA; • Reviewed the AGSA’s Management Report and Management’s response thereto; and • Reviewed the Department’s compliance with legal and regulatory provisions.
The Audit Committee concurs with and accepts the AGSA’s conclusions 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 AGSA. Evaluation of Annul Report The Audit Committee undertook the following activities related to annual report:
Audit Committee evaluated final draft Annual Report (including performance report) the audit committee meeting held on 15th October 2020 and noted the achievement for the year under review and recommended it. Audit Improvement Plan for 2018/19 The Audit Committee reviewed and monitored the implementation of prior year audit findings on quarterly basis. It is the view of the Audit Committee that there is a room for improvement in this regard in so far as timeous implementation and resolving findings by the external auditors as well as addressing the root-causes relating to the weakness identified by the external auditors.
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One-on-One Meeting with the Accounting Officer The Audit Committee has met with the Accounting Officer for the Department to address unresolved issues. One-on-One Meetings with the Executive Authority The Audit Committee has met with the Executive Authority for the Department to apprise the MEC on the performance of the Department. Conclusion The Audit Committee strongly recommends that the department should prioritise root-cause identification and analysis, implementation of consequence management, and regular monitoring of the audit action plans for both internal and external audit in order to achieve the required effectiveness in governance, accountability and clean administration.
Furthermore, The Audit Committee is encouraged and appreciates the improvement in the communication between the Accounting Officer, Senior Management, the AGSA and the Internal Audit which if continued can strengthen the Corporate Governance initiatives within the Department.
Mr. Vishnu Naicker Chairperson of the Audit Committee Johannesburg
16 October 2020
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13. B-BBEE COMPLIANCE PERFORMANCE INFORMATION Human The following table has been completed in accordance with the compliance to the BBBEE requirements of the BBBEE Act of 2013 and as determined by the Department of Trade and Industry. Resource
Has the Department applied any relevant Code of Good Practice (B-BBEE Certificate Levels 1 – 8) with regards to the following: Management
Criteria Response Discussion
Yes / No
Determining qualification criteria for the No N/A issuing of licences, concessions or other authorisations in respect of economic activity in terms of any law?
Developing and implementing a preferential Yes The SCM office implements the preferential procurement procurement policy? according to the revised PPPFA (2000) and 2017 Preferential Procurement Regulations as this is the prescripts that governs the public procurement. Preferential Procurement is implemented through a point system, 80:20 or 90:10 where 20/10 points are for preference points. The valid proof of B-BBEE status is submitted by service provider to obtain preference points.
The service providers are also allowed to submit affidavit to confirm their B-BBEE Status Level of Contributor. A CIPC certificate is also allowed to confirm their B-BBEE Status Level of Contributor if the certificate has B-BBEE level.
A SMME Workshop regarding the 2017 Revised Preferential Procurement Regulations on subcontracting is imperative in order to deal with projects disruption on site.
Engagement with municipalities through their councillors about projects that will take place in their space is important in order to prepare communities.
Determining qualification criteria for the sale of No N/A state-owned enterprises?
Developing criteria for entering into No N/A partnerships with the private sector?
Determining criteria for the awarding of No N/A incentives, grants and investment schemes in support of B-BBEE?
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Human Resource Management
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PARTANNUAL D: HUMAN FINANCIAL RESOURCE STATEMENTS MANAGEMENT Human Resource Management
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1. INTRODUCTION Human The information contained in this part of the annual report has been prescribed by the Minister for the Public Resource Service and Administration for all departments in the public service. Management 2. OVERVIEW OF HUMAN RESOURCES The Department continues to invest in its capacity and skills to provide infrastructure delivery and management of services required for the fulfilment of its mandate. For the 2019/20 financial year, the Department continued in the promotion of health workplace by ensuring that all employees are supported through education and counselling in matters of chronic diseases and stress management. 3. HUMAN RESOURCES OVERSIGHT STATISTICS 3.1 Personnel related expenditure The following tables summarises the final audited personnel related expenditure by programme and by salary bands. In particular, it provides an indication of the following: • Amount spent on personnel. • Amount spent on salaries, overtime, homeowners’ allowances and medical aid.
Table 3.1.1 Personnel expenditure by programme for the period 1 April 2019 and 31 March 2020
Programme Total Personnel Training Professional and Personnel Average expenditure expenditure expenditure special services expenditure personnel cost expenditure as a % of total per employee (R’000) (R’000) (R’000) expenditure (R’000) (R’000)
Administration 351 370 227 151 2 936 0 64 517
Public Works 2 722 784 774 328 0 0 28 377
EPWP 268 819 118 653 0 0 44 2 282 Total 3 342 973 1 120 132 2 936 0 33 3 176
The table above is in line with the records as disclosed in the BAS report and the Departmental appropriation statement.
Table 3.1.2 Personnel costs by salary band for the period 1 April 2019 and 31 March 2020
Salary band Personnel % of total No. of employees Average personnel expenditure (R’000) personnel cost cost per employee (R’000)
Lower skilled (Levels 1-2) 41, 979 4,48 270 155
Skilled (Levels 3-5) 258,689 27,59 1,212 213
Highly skilled production (Levels 6-8) 233,349 24,89 655 356
Highly skilled supervision (Levels 9-12) 316,484 33,76 490 646
Senior and top management (levels 13-16) 72,517 7,74 69 1,051
Interns and Learners 14,483 1,54 372 39 Total 937,502 100,00 3068 306
The table above is in line with the records as disclosed in the PERSAL report.
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Table 3.1.3 Salaries, overtime, home owners allowance and medical aid by programme for the period 1 April 2019 and 31 March 2020
Programme Salaries Overtime Home owners’ allowance Medical aid
Amount Salaries Amount Overtime Amount HOA as a % Amount Medical aid (R’000 as a % of (R’000) as a % of of personnel (R’000) as a % of personnel personnel (R’000) costs personnel costs costs costs
Administration 140,109 14,94 202 0,02 6 416 0,68 6,833 0,73
Public Works 464,887 49,59 28,500 3,04 30,470 3,25 34,647 3,7
EPWP 15,266 1,63 6 0,07 627 0,07 510 0,05 Total 620,262 66,16 28,708 3,06 37 513 4,00 41 990 4,48
The table above is in line with the records as disclosed in the PERSAL report.
Table 3.1.4 Salaries, overtime, home owners’ allowance and medical aid by salary band for the period 1 April 2019 and 31 March 2020
Salary band Salaries Overtime Home owners’ Allowance Medical aid Amount Salaries Amount Overtime Amount HOA as Amount Medical (R’000 as a % of as a % of (R’000) a % of (R’000) aid as personnel (R’000) personnel personnel a % of costs costs costs personnel costs
Skilled (Levels 1-2) 25 302 2,70 2 394 0,26 2 892 0,31 4 401 0,47
Skilled (Levels 3-5) 165 525 17,66 15 246 1,63 15 464 1,65 19 386 2,07
Highly skilled 160 061 17,07 8 281 0,88 8 629 0,92 11 556 1,23 production (Levels 6-8)
Highly skilled 222 537 23,74 2 787 0,30 7 966 0,85 6 122 0,65 supervision (Levels 9-12)
Senior management 46 838 5,00 0 0,00 2 563 0,27 524 0,06 (Levels 13-16) Total 620 262 66,16 28 708 3,06 37 513 4,00 41 990 4,48
The table above is in line with the records as disclosed in the PERSAL report.
3.2 Employment and vacancies The tables in this section summarise the position with regard to employment and vacancies.
The following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment.
This information is presented in terms of three key variables: • Programme • Salary band • Critical occupations (see definition in notes below). Departments have identified critical occupations that need to be monitored. In terms of current regulations, it is possible to create a post on the establishment that can be occupied by more than one employee. Therefore, the vacancy rate reflects the percentage of posts that are not filled.
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Table 3.2.1 Employment and vacancies by programme as on 31 March 2020
Programme Number of posts on Number of posts filled Vacancy rate Number of employees approved establishment additional to the establishment
Administration 622 427 31.4% (195) 13
Public Works 2623 2001 23.7% (622) 52
EPWP 46 44 4.3% (2) 8 Total 3291 2472 24.9% (819) 73
Table 3.2.2 Employment and vacancies by salary band as on 31 March 2020
Salary band Number of posts Number of posts Vacancy rate Number of on approved filled employees establishment additional to the establishment
Lower skilled (Levels 1-2) 587 360 38.7% (227) 6
Skilled (Levels 3-5) 1142 825 27.8% (317) 2
Highly skilled production (Levels 6-8) 425 343 19.3% (82) 6
Highly skilled supervision (Levels 9-12) 252 209 17.1% (43) 19
OSD: Engineers and related 183 139 24.0% (44) 30
OSD: Legal Admin Officers 8 7 12.5% (1) 1
OSD: Artisan 627 538 14.2% (89) 5
Senior management (Levels 13-16) 67 51 23.9% (16) 5 Total 3291 2472 24.9% (819) 73
Table 3.2.3 Employment and vacancies by critical occupations as on 31 March 2020
Critical occupation Number of posts Number of posts Vacancy rate Number of on approved filled employees establishment additional to the establishment
All artisans and other technical occupations, 627 538 14.2% (89) 5 in the building, metal machinery industry
OSD: Engineering and Related Professionals 183 139 24.0% (44) 30
OSD: Legal Admin Officer 8 7 12.5% (1) 1 Total 818 684 16.4% (134) 36
3.3 Filling of SMS Posts The tables in this section provide information on employment and vacancies as it relates to members of the Senior Management Service (SMS) by salary level. It also provides information on advertising and filling of SMS posts, reasons for not complying with prescribed timeframes and disciplinary steps taken.
Table 3.3.1 SMS post information as on 31 March 2020
SMS level Total number of Total number of % of SMS posts Total number of % of SMS posts, funded SMS posts SMS posts filled filled SMS posts vacant vacant
Director-General/ Head of 1 0 0% 1 100% Department
Salary level 15 4 3 75% 1 25%
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SMS level Total number of Total number of % of SMS posts Total number of % of SMS posts, funded SMS posts SMS posts filled filled SMS posts vacant vacant
Salary level 14 13 11 84.6% 2 15.4%
Salary level 13 49 37 75.6% 12 24.4% Total 67 51 76.1% 16 23.9%
Table 3.3.2 SMS post information as on 30 September 2019
SMS level Total number of Total number of % of SMS posts Total number of % of SMS posts, funded SMS posts SMS posts filled filled SMS posts vacant vacant
Director-General/ Head of 1 0 0% 1 100% Department
Salary level 15 4 3 75% 1 25%
Salary level 14 13 11 84.6% 2 15.4%
Salary level 13 49 37 75.6% 12 24.4%
Total 67 51 76.1% 16 23.9%
Table 3.3.3 Advertising and filling of SMS posts for the period 1 April 2019 and 31 March 2020
SMS Level Advertising Filling of posts Number of vacancies per Number of vacancies per Number of vacancies per level advertised in 6 months level filled in 6 months of level not filled in 6 months of becoming vacant becoming vacant but filled in 12 months
Director-General/ Head of Department 1 0 100
Salary level 16 1 0 100
Salary level 15 4 3 0
Salary level 14 13 11 85
Salary level 13 49 37 78 Total 67 52 81
Table 3.3.4 Reasons for not having complied with the filling of funded vacant SMS - Advertised within 6 months and filled within 12 months after becoming vacant for the period 1 April 2019 and 31 March 2020
Reasons for vacancies not advertised within six months
Budget contraints. All recruitment processes were put on hold.
Reasons for vacancies not filled within twelve months
Due COVID-19 restrictions, the department was not able to fill vacant posts within the perscribed time frame.
Table 3.3.5 Disciplinary steps taken for not complying with the prescribed timeframes for filling SMS posts within 12 months for the period 1 April 2019 and 31 March 2020
Reasons for vacancies not advertised within six months
N/A
Reasons for vacancies not filled within six months
Difficulty in attracting candidates who meet the SMS minimum requirements as determined by the DPSA Directive.
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3.4 Job evaluation Within a nationally determined framework, executing authorities may evaluate or re-evaluate any job in his or her organisation. In terms of the Regulations all vacancies on salary levels 9 and higher must be evaluated before they are filled. The following table summarises the number of jobs that were evaluated during the year under review. The table also provides statistics on the number of posts that were upgraded or downgraded.
Table 3.4.1 Job evaluation by salary band for the period 1 April 2019 and 31 March 2020
Posts upgraded Posts downgraded Number of posts Number % of posts on approved of jobs evaluated by % of posts % of posts Salary band establishment evaluated salary bands Number evaluated Number evaluated
Lower skilled (Levels1-2) 587 587 100 0 0 0 0
Skilled (Levels 3-5) 1142 1136 99 0 0 0 0
Highly skilled production (Levels 6-8) 404 373 92 0 0 0 0
Highly skilled supervision (Levels 9-12) 273 225 82 0 0 22 10
Senior Management Service Band A 49 33 67 0 0 0 0
Senior Management Service Band B 13 12 92 0 0 0 0
Senior Management Service Band C 4 2 50 0 0 0 0
Senior Management Service Band D 1 0 0 0 0 0 0
OSD 818 818 100 0 0 0 0 Total 3291 3186 97 0 0 22 0.7
The following table provides a summary of the number of employees whose positions were upgraded due to their post being upgraded. The number of employees might differ from the number of posts upgraded since not all employees are automatically absorbed into the new posts and some of the posts upgraded could also be vacant.
Table 3.4.2 Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2019 and 31 March 2020
Gender African Asian Coloured White Total
Female 0 0 0 0 0
Male 0 0 0 0 0 Total 0 0 0 0 0
Employees with a disability 0
The following table summarises the number of cases where remuneration bands exceeded the grade determined by job evaluation. Reasons for the deviation are provided in each case.
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Table 3.4.3 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2019 and 31 March 2020
Occupation Number of employees Job evaluation level Remuneration level Reason for deviation
N/A N/A N/A N/A N/A
Total number of employees whose salaries exceeded the level determined by job evaluation N/A
Percentage of total employed N/A
The following table summarises the beneficiaries of the above in terms of race, gender, and disability.
Table 3.4.4 Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2019 and 31 March 2020
Gender African Asian Coloured White Total Female 0 0 0 0 0 Male 0 0 0 0 0 Total 0 0 0 0 0
Employees with a disability 0 0 0 0 0
Total number of employees whose salaries exceeded the grades determine by job evaluation None
3.5 Employment changes This section provides information on changes in employment over the financial year. Turnover rates provide an indication of trends in the employment profile of the department. The following tables provide a summary of turnover rates by salary band and critical occupations (see definition in notes below).
Table 3.5.1 Annual turnover rates by salary band for the period 1 April 2019 and 31 March 2020
Salary band Number of Appointments and Terminations and Turnover rate employees at transfers into the transfers out of the beginning of period - Department Department 1 April 2019
Lower skilled (Levels 1-2) 375 0 4 1.07%
Skilled (Levels 3-5) 874 2 52 5.95%
Highly skilled production (Levels 6-8) 351 2 20 5.70%
Highly skilled supervision (Levels 9-12) 264 4 28 10.61%
Artisan and related professions 570 0 25 4.39%
OSD (Legal Admin) 8 0 1 12.50%
OSD (Engineers and related 162 0 1 0.62% professions)
Senior Management Service Bands A 45 1 12 26.67%
Senior Management Service Bands B 13 3 0 0.00%
Senior Management Service Bands C 4 2 0 0.00%
Senior Management Service Bands D 1 1 0 0.00%
Contracts 10 0 10 (Month- 0% to-month only excluded in the total below) Total 2677 15 143 5.34%
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Table 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2019 and 31 March 2020
Critical occupation Number of Appointments and Terminations and Turnover rate employees at transfers into the transfers out of the beginning of Department Department period - 1 April 2019
All artisans and other technical occupations, in 570 0 25 4.39% the building, metal machinery industry
OSD: Engineering and Related Professionals 162 0 1 0.62% TOTAL 732 0 26 3.55%
The table below identifies the major reasons why staff left the Department.
Table 3.5.3 Reasons why staff left the department for the period 1 April 2019 and 31 March 2020
Termination Type Number % of Total Resignations
Death 21 0.83%
Resignation 48 1.89%
Expiry of contract 17 0.67%
Dismissal – misconduct 3 0.12%
Discharged due to ill-health 3 0.12%
Retirement 36 1.41%
Transfer to other Public Service departments 15 0.59%
Other 0 0.00% Total 143 5.62% Total number of employees who left as a % of total employment 5.62%
Table 3.5.4 Promotions by critical occupation for the period 1 April 2019 and 31 March 2020
Occupation Employees 1 Promotions to Salary level Progressions to Notch April 2019 another salary promotions as a another notch progression as a level % of employees within a salary % of employees by occupation level by occupation
All artisans and other technical 570 0 0% 390 68% occupations, in the building, metal machinery industry
OSD: Engineering and Related 167 2 1.3% 90 54% Professionals TOTAL 737 2 0.1% 480 65%
Table 3.5.5 Promotions by salary band for the period 1 April 2019 and 31 March 2020
Salary band Employees 1 Promotions to Salary bands Progressions to Notch April 2019 another salary promotions as a another notch progression as a level % of employees within a salary % of employees by salary level level by salary bands
Lower skilled (Levels 1-2) 381 0 0 218 57%
Skilled (Levels 3-5) 899 0 0 795 88%
Highly skilled production (Levels 6-8) 362 0 0 330 91%
Highly skilled supervision (Levels 9-12) 270 0 0 207 77%
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Salary band Employees 1 Promotions to Salary bands Progressions to Notch April 2019 another salary promotions as a another notch progression as a level % of employees within a salary % of employees by salary level level by salary bands
Senior Management (Level 13-16) 65 2 3.1% 37 57%
Artisan and Related professions 553 0 0 390 71%
OSD (Legal Admin) 7 0 0 7 100%
OSD (Engineers and related 159 2 1.3% 90 57% professions) Total 2696 4 0.1% 2074 77% 3.6 Employment equity Table 3.6.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March 2020
Occupational Male Female Total category African Coloured Indian White African Coloured Indian White
Legislators, senior 34 1 1 1 18 1 1 0 57 officials and managers
Professionals 94 1 8 7 48 2 2 3 165
Technicians 200 6 0 22 140 5 1 2 376 and associate professionals
Clerks 185 3 3 15 240 7 0 25 478
Service and sales 0 0 0 0 0 0 0 0 0 workers
Skilled agriculture 0 0 0 0 0 0 0 0 0 and fishery workers
Craft and related 389 13 2 44 96 0 0 0 544 trades workers
Plant and machine 228 1 0 6 115 0 0 0 350 operators and assemblers
Elementary 352 10 0 6 206 1 0 0 575 occupations
Total 1482 35 14 101 863 16 4 30 2545
Employees with 40 2 0 8 14 0 0 3 67 disabilities
Table 3.6.2 Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2020
Occupational band Male Female Total African Coloured Indian White African Coloured Indian White
Top management 2 0 0 0 1 0 0 0 3
Senior management 32 1 1 1 17 1 1 0 54
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Occupational band Male Female Total African Coloured Indian White African Coloured Indian White
Professionally 258 8 8 33 138 5 3 4 457 qualified and experienced specialists and mid- management
Skilled technical 353 7 4 48 229 8 0 24 673 and academically qualified workers, junior management, supervisors, foreman and superintendents
Semi-skilled and 719 18 1 19 333 2 0 2 1094 discretionary decision making
Unskilled and defined 118 1 0 0 145 0 0 0 264 decision making Total 1482 36 14 101 863 16 4 30 2545
Table 3.6.3 Recruitment for the period 1 April 2019 to 31 March 2020
Occupational band Male Female Total African Coloured Indian White African Coloured Indian White
Top management 0 0 0 0 0 0 0 0 0
Senior management 0 0 0 0 0 0
Professionally 1 0 1 0 0 0 0 0 2 qualified and experienced specialists and mid-management
Skilled technical 0 0 0 0 0 0 0 0 0 and academically qualified workers, junior management, supervisors, foreman and superintendents
Semi-skilled and 0 0 0 0 0 0 0 0 0 discretionary decision making
Unskilled and defined 0 0 0 0 0 0 0 0 0 decision making Total 1 0 1 0 0 0 0 0 2 Employees with 0 0 0 0 0 0 0 0 0 disabilities
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Table 3.6.4 Promotions for the period 1 April 2019 to 31 March 2020
Occupational band Male Female Total African Coloured Indian White African Coloured Indian White
Top management 0 0 0 0 0 0 0 0 0
Senior management 0 1 0 0 1 0 0 0 2
Professionally qualified 0 0 0 0 0 0 0 0 0 and experienced specialists and mid- management
Skilled technical 0 0 0 0 0 0 0 0 0 and academically qualified workers, junior management, supervisors, foreman and superintendents
Semi-skilled and 0 0 0 0 0 0 0 0 0 discretionary decision making
Unskilled and defined 0 0 0 0 0 0 0 0 0 decision making Total 0 1 0 0 1 0 0 0 2 Employees with 0 0 0 0 0 0 0 0 0 disabilities
Table 3.6.5 Terminations for the period 1 April 2019 to 31 March 2020
Occupational band Male Female Total African Coloured Indian White African Coloured Indian White
Top management 1 0 0 0 3 0 0 0 4
Senior management 48 1 0 4 10 0 0 0 63
Professionally qualified 19 1 0 5 5 0 0 3 33 and experienced specialists and mid- management
Skilled technical 19 1 0 2 7 0 0 2 31 and academically qualified workers, junior management, supervisors, foreman and superintendents
Semi-skilled and 5 0 1 0 6 0 0 0 12 discretionary decision making
Unskilled and defined 92 3 1 11 31 0 0 5 143 decision making Total 0 0 0 0 0 0 0 0 0 Employees with 1 0 0 0 3 0 0 0 4 Disabilities
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Table 3.6.6 Disciplinary action for the period 1 April 2019 to 31 March 2020
Disciplinary action Male Female Total African Coloured Indian White African Coloured Indian White
124 3 3 2 79 2 3 7 224
In two cases alleged transgressors are unknown.
Table 3.6.7 Skills development for the period 1 April 2019 to 31 March 2020
Occupational category Male Female Total African Coloured Indian White African Coloured Indian White
Legislators, senior officials and 6 0 0 0 4 0 0 0 10 managers
Professionals 65 0 0 0 101 2 0 0 168
Technicians and associate 79 3 3 4 75 0 2 0 166 professionals
Clerks 141 2 1 0 270 7 2 0 423
Service and sales workers 0 0 0 0 0 0 0 0 0
Skilled agriculture and fishery 0 0 0 0 0 0 0 0 0 workers
Craft and related trades workers 239 4 2 9 556 2 0 0 812
Plant and machine operators and 100 0 0 0 208 0 0 0 308 assemblers
Elementary occupations 56 0 0 1 85 0 0 0 142 Total 686 9 6 14 1 299 11 4 0 2 029 Employees with disabilities 27 0 0 0 18 0 0 1 46
3.7 Signing of Performance Agreements by SMS members All members of the SMS must conclude and sign performance agreements within specific timeframes. Information regarding the signing of performance agreements by SMS members, the reasons for not complying within the prescribed timeframes and disciplinary steps taken is presented here.
Table 3.7.1 Signing of Performance Agreements by SMS members as on 31 May 2019
SMS level Total number of Total number of SMS Total number of Signed performance funded SMS posts members signed performance agreements as % of agreements total number of SMS members
Director-General/ Head of Department 1 1 1 100%
Salary level 16 0 0 0 0
Salary level 15 4 4 4 100%
Salary level 14 14 14 14 100%
Salary level 13 42 42 42 100% Total 61 61 61 100%
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Table 3.7.2 Reasons for not having concluded performance agreements for all SMS members as on 31 March 2020
Reasons
N/A
Table 3.7.3 Disciplinary steps taken against SMS members for not having concluded Performance Agreements as on 31 March 2020
Reasons
N/A
3.8 Performance rewards To encourage good performance, the department has granted the following performance rewards during the year under review. The information is presented in terms of race, gender, disability, salary bands and critical occupations (see definition in notes below).
Table 3.8.1 Performance rewards by race, gender and disability for the period 1 April 2019 to 31 March 2020
Race and gender Beneficiary profile Cost Number of Number of % of total within Cost (R’000) Average cost per beneficiaries employees group employee
African 2123 2470 86% 13,405 6314
Male 747 890 84% 4,704 6297
Female 1376 1580 87% 8,701 6323
Asian 18 19 95% 250 13 878
Male 5 5 100% 82 16 482
Female 13 14 93% 167 12 876
Coloured 43 52 83% 319 7 423
Male 15 17 88% 114 7 595
Female 28 35 80% 205 7 332
White 136 155 88% 1 164 8 567
Male 29 36 81% 230 7 914
Female 107 119 90% 935 8 744 Total 2320 2696 86% 15,139 6 525
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Table 3.8.2 Performance rewards by salary band for personnel below SMS for the period 1 April 2019 to 31 March 2020
Salary band Beneficiary profile Cost Total cost as a % of the total Number of Number of % of total Total cost Average personnel beneficiaries employees within salary (R’000) cost per expenditure bands employee
Lower skilled (Levels 1-2) 241 375 64 749 3 106 5%
Skilled (Levels 3-5) 846 874 97 3 710 4 385 26%
Highly skilled production (Levels 6-8) 350 351 100 2 622 7 493 19%
Highly skilled supervision (Levels 9-12) 226 264 86 2 247 9 942 16%
Artisan and related professions 503 570 88 3 418 6 795 24%
OSD (Legal Admin) 8 8 100 71 8 826 1%
OSD (Engineers and related professions) 118 162 73 1 229 10 413 9% Total 2 292 2 604 88 14 045 6 128 100%
The table above discloses the details of payments made in line with the 2018/19 PMDS incentives implemented per salary band.
Table 3.8.3 Performance rewards by critical occupation for the period 1 April 2019 to 31 March 2020
Critical occupation Beneficiary profile Cost Number of Number of % of total within occupation Total cost Average cost beneficiaries employees (R’000) per employee
Artisans in building metal machinery 503 570 88 3 418 6 795
Engineering and related professionals 118 162 73 1 228 10 413 Grand total 621 732 161 4 646 7 483
The table above discloses the details of payments made in line with the 2018/19 PMDS incentives implemented per professional occupation.
Table 3.8.4 Performance related rewards (cash bonus), by salary band for SMS for the period 1 April 2019 to 31 March 2020
Salary band Beneficiary profile Cost Total cost as a % of the total Number of Number of % of total within Total cost Average cost per personnel beneficiaries employees salary bands (R’000) employee expenditure
Band A 23 45 51% 869 37,808 79%
Band B 5 13 38% 225 44,917 21%
Band C 0 4 0% 0 0 0
Band D 0 1 0% 0 0 0 Total 28 63 44% 1,094 39,078 100%
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3.9 Foreign workers The tables below summarise the employment of foreign nationals in the department in terms of salary band and major occupation.
Table 3.9.1 Foreign workers by salary band for the period 1 April 2019 and 31 March 2020
Salary band 01 April 2019 31 March 2020 Change Number % of total Number % of total Number % Change
Lower skilled 0 0 0 0 0 0
Highly skilled production (Levels 6-8) 0 0 0 0 0 0
Highly skilled supervision (Levels 9-12) 1 0.58% 1 0.58% 0 0%
Contract (Levels 9-12) 0 0 0 0 0 0
Contract (Levels 13-16) 0 0 0 0 0 0 Total 1 0.58% 1 0.58% 0 0%
Table 3.9.2 Foreign workers by major occupation for the period 1 April 2019 and 31 March 2020
Major occupation 01 April 2019 31 March 2020 Change Number % of total Number % of total Number % Change
Engineering and related professionals 1 0.58% 1 0.58% 0 0%
3.10 Leave utilisation The Public Service Commission identified the need for careful monitoring of sick leave within the public service. The following tables provide an indication of the use of sick leave and disability leave. In both cases, the estimated cost of the leave is also provided.
Table 3.10.1 Sick leave for the period 1 January 2019 to 31 December 2019
Salary band Total days % days with Number of % of total Average Estimated medical employees employees days per cost (R’000) certification using sick using sick employee leave leave
Lower skilled (Levels 1-2) 3 788 0,07 371 0.09 10,21 1 716
Skilled (Levels 3-5) 3 801 0,2 1504 0.29 2,5 11 678
Highly skilled production (Levels 6-8) 2 394 0,2 835 0.34 2,7 13 690
Highly skilled supervision (Levels 9 -12) 1 355 0,2 483 0.35 2,8 20 917
Top and senior management (Levels 13-16) 899 0,02 40 0.04 22,42 4 495 Total 12 237 0,67 3233 1,11 40,6 52 495
Table 3.10.2 Disability leave (temporary and permanent) for the period 1 January 2019 to 31 December 2019
Salary band Total days % days with Number of % of total Average Estimated medical employees employees days per cost (R’000) certification using using employee disability disability leave leave
Lower skilled (Levels 1-2) 2 0 1 2 0,5 10
Skilled (Levels 3-5) 293 100 6 97,6 0,02 218
Highly skilled production (Levels 6-8) 173 100 3 57,6 0,01 314
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Salary band Total days % days with Number of % of total Average Estimated medical employees employees days per cost (R’000) certification using using employee disability disability leave leave
Highly skilled supervision (Levels 9-12) 5 100 3 1,6 0,6 297
Senior management (Levels 13-16) 0 0 0 0 0 0 Total 473 100 13 156,8 1,13 839
The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service.
Table 3.10.3 Annual leave for the period 1 January 2019 to 31 December 2019
Salary band Total days taken Number of employees Average per employee using annual leave
Lower skilled (Levels 1-2) 3618 972 0.2
Skilled( Levels 3-5) 16250 4478 0,27
Highly skilled production (Levels 6-8) 9384 2718 0.29
Highly skilled supervision (Levels 9-12) 5981 1818 0.30
Senior management (Levels 13-16) 770 245 0.3 Total 36003 10231 1.09
Table 3.10.4 Capped leave for the period 1 January 2019 to 31 December 2019
Salary band Total days of capped Number of Average number Average capped leave taken employees using of days taken per leave per employee capped leave employee as on 31 March 2020
Lower skilled (Levels 1-2) 0 0 0 0
Skilled (Levels 3-5) 106,99 6 0,05 17,8
Highly skilled production (Levels 6-8) 55,71 1 0,01 55,71
Highly skilled supervision (Levels 9-12) 0 0 0 0
Senior management (Levels 13-16) 0 0 0 0 Total 162,7 7 0,06 73,51
The following table summarise payments made to employees as a result of leave that was not taken.
Table 3.10.5 Leave pay-outs for the period 1 April 2019 and 31 March 2020
Reason Total amount Number of Average per (R’000) employees employee (R’000)
Leave pay-out for 2019/2020 due to non-utilisation of leave for the previous R287 403,65 3 1,04 cycle
Capped leave pay-outs on termination of service for 2019/2020 R151893,26 7 0,4
Current leave pay-out on termination of service for 2019/2020 0 0 0 Total R439 296,91 10 1,44
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3.11 HIV/AIDS and health promotion programmes Table 3.11.1 Steps taken to reduce the risk of occupational exposure
Units/categories of employees identified to be at high risk of Key steps taken to reduce the risk contracting HIV & related diseases (if any)
Did employees who work in the Department of Health facilities • The EHWP is in the process of drafting a submission for a come into contact with patients/ members of public suffering Comprehensive medical surveillance. Previously in 2015/ from a variety of diseases such as TB, etc. 2016 medical surveillance was undertaken whereby 197 employees were assessed.
• There is on-going health screenings undertaken at head office and other Departmental institutions. In 2019, targeted groups are to be prioritised.
• There are ongoing OHS awareness sessions undertaking in conjunction with safety officers at departmental institutions.
• EHWP services including those of external service providers (Careways) made available to employees to consult at their time including on health-related issues.
Table 3.11.2 Details of health promotion and HIV/AIDS programmes
Question Yes No Details, if yes
1. Has the department designated a member of the SMS to Mr. Wesley Jacobs: Chief Director: HRM implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position.
2. Does the department have a dedicated unit or has it designated Deputy Director, and EHWP specific staff members to promote the health and well-being of coordinators. your employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose.
3. Has the department introduced an Employee Assistance or The Employee Assistance or Health Health Promotion Programme for your employees? If so, Promotion Programme are done indicate the key elements/services of this Programme. through/ in accordance with DPSA’s strategic framework on employee health and wellness comprising of four pillars namely: • HIV/AIDS and TB Management • Health and productivity • Management • Wellness Management • SHERQ Management
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Question Yes No Details, if yes
4. Has the department established (a) committee(s) as Peer Educator Committee: contemplated in Part VI E.5 (e) of Chapter 1 of the Public • Rejoice Matlala Service Regulations, 2001? If so, please provide the names of • Tshepo Khuzani the members of the committee and the stakeholder(s) that they • Rondis Matroos represent. • T.P Malepe • Christopher Mashau • Lerato Kgwadi • Nolwandle Nyubantya • Elias Mphande • Joyce Chabalala • Suzan Koae • Herrieth Manyapwe • J. Teffo • Seipati Kele • Lesego Molwelang • Phindi Gule • Phethile Masango • Oupa Matinye • Nobayeni Velaphi • Kgomotso Ntsoko • Thandazile Matsaneng • Elsie Lekagane • Ketse Moja • Nthati Dhlamini • Feziwe Bacela • Khezia Senne • Sibongile Mkhwanazi • Vusumuzi Mkhwanazi
5. Has the department reviewed its employment policies and • HIV/AIDS and TB Management practices to ensure that these do not unfairly discriminate • Employee Wellness against employees on the basis of their HIV status? If so, list the • SHERQ Management employment policies/practices so reviewed. • Health and Productivity Management
6. Has the department introduced measures to protect HIV- • HIV/AIDS and TB Management positive employees or those perceived to be HIV-positive from • Policy is available to mitigate discrimination? If so, list the key elements of these measures. against stigma and discrimination • Advocacy sessions are held to discuss to discuss a variety of chronic illness (including HIV/ AIDS), human rights issues • Information on HIV/AIDS is shared as part of Employee induction of new employees • Health screenings including HIV/AIDS by an external service provider (GEMS) done anonymously • Availability of an external service provider (Careways) to guarantee privacy, confidentiality and convenience to provide support and Management.
7. Does the department encourage its employees to undergo HCT is planned/ conducted twice a year Voluntary Counselling and Testing? If so, list the results that you as part of Health screenings have you achieved.
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Question Yes No Details, if yes
8. Has the department developed measures/indicators to monitor • DPSA systematic Monitoring Tool & evaluate the impact of its health promotion programme? If is available so, list these measures/indicators. • Quarterly reports are submitted to Transversal office.
3.12 Labour relations Table 3.12.1 Collective agreements for the period 1 April 2019 and 31 March 2020
Total number of collective agreements 0
The following table summarises the outcome of disciplinary hearings conducted within the Department for the year under review.
Table 3.12.2 Misconduct and disciplinary hearings finalised for the period 1 April 2019 and 31 March 2020
Outcomes of disciplinary hearings Number % of total
Correctional counselling 4 1.9%
Verbal warning 4 1.9%
Written warning 118 57%
Final written warning 28 13.5%
Suspended without pay 2 0.9%
Fine N/A 0
Demotion N/A 0
Dismissal 3 1.4%
Not guilty 16 7.7%
Case withdrawn 16 7.7%
Case closed 26 7.7% Total 217 100%
Total number of disciplinary hearings finalised 4
Table 3.12.3 Types of misconduct addressed at disciplinary hearings for the period 1 April 2019 and 31 March 2020
Type of misconduct Number % of total
Non-disclosure 134 59%
Absenteeism/abscondment 42 19%
Theft 1 0.4%
Failure to carryout lawful instruction 20 9%
Misuse of GG vehicle 1 0.4%
Assault 2 1%
Fraud 1 0.4%
Improper behaviour 10 4.%
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Type of misconduct Number % of total
Insubordination 4 2%
Negligence 3 1.3%
Poor work performance 0 0
Failure to comply with Acts and regulations 4 2%
Irregular appointment 1 0.4%
Threats and intimidation 2 1%
Conduct private business in the property of the State 1 0.4% Total 226 100%
Table 3.12.4 Grievances logged for the period 1 April 2019 and 31 March 2020
Grievances Number % of Total
Number of grievances resolved 35 76%
Number of grievances not resolved 11 24% Total number of grievances lodged 46 100%
Table 3.12.5 Disputes logged with Councils for the period 1 April 2019 and 31 March 2020
Disputes Number % of Total Number of disputes upheld N/A 0
Number of disputes dismissed 6 50%
Number of disputes pending 6 50% Total number of disputes lodged 12 100%
Table 3.12.6 Strike actions for the period 1 April 2019 and 31 March 2020
Total number of persons working days lost N/A
Total costs working days lost N/A
Amount recovered as a result of no work no pay (R’000) N/A
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Table 3.12.7 Precautionary suspensions for the period 1 April 2019 and 31 March 2020
Number of people suspended 2
Number of people whose suspension exceeded 30 days 2
Average number of days suspended 196 Cost of suspension(R’000) R658 230.34 3.13 Skills development This section highlights the efforts of the Department with regard to skills development.
Table 3.13.1 Training needs identified for the period 1 April 2019 and 31 March 2020
Training needs identified at start of the reporting period Skills Number of programmes employees as and other Other forms of Occupational category Gender at 1 April 2019 Learnerships short courses training Total
Legislators, senior officials and Female 40 0 4 0 4 managers Male 25 0 1 0 1
Professionals Female 114 0 344 0 344
Male 54 0 322 0 322
Technicians and associate Female 263 0 2 0 2 professionals Male 163 0 7 0 7
Clerks Female 146 0 231 0 231
Male 276 0 244 0 244
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 796 50 137 0 187 workers Male 254 50 288 0 338
Plant and machine operators Female 298 0 80 0 80 and assemblers Male 121 0 90 0 90
Elementary occupations Female 87 0 0 0 0
Male 59 0 0 0 0
Sub total Female 1744 0 798 0 798
Male 952 0 952 0 952 Total 2696 100 1750 0 1850
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Table 3.13.2 Training provided for the period 1 April 2019 and 31 March 2020
Occupational category Gender Number of Training provided within the reporting period employees as at Learnerships Skills Other forms Total 1 April 2019 programmes of training and other short courses
Legislators, senior officials Female 40 0 4 0 4 and managers Male 25 0 6 0 6
Professionals Female 114 0 103 0 103
Male 54 0 65 0 65
Technicians and associate Female 263 0 77 0 77 professionals Male 163 0 89 0 89
Clerks Female 146 0 270 9 279
Male 276 0 135 9 144
Service and sales workers Female 0 0 0 0 0
Male 0 0 0 0 0
Skilled agriculture and Female 0 0 0 0 0 fishery workers Male 0 0 0 0 0
Craft and related trades Female 796 0 558 0 558 workers Male 254 0 254 0 254
Plant and machine Female 298 0 208 0 208 operators and assemblers Male 121 0 100 0 100
Elementary occupations Female 87 0 85 0 85
Male 59 0 57 0 57
Sub total Female 1744 0 1305 9 1314
Male 952 0 706 9 715 Total 2696 0 2011 18 2029 3.14 Injury on duty The following tables provide basic information on injury on duty.
Table 3.14.1 Injury on duty for the period 1 April 2019 and 31 March 2020
Nature of injury on duty Number % of total
Required basic medical attention only 23
Temporary total disablement 0 0
Permanent disablement 0 0
Fatal 0 0 Total
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3.15 Utilisation of consultants The following tables relates information on the utilisation of consultants in the department. In terms of the Public Service Regulations “consultant’ means a natural or juristic person or a partnership who or which provides in terms of a specific contract on an ad hoc basis any of the following professional services to a department against remuneration received from any source: (a) The rendering of expert advice. (b) The drafting of proposals for the execution of specific tasks. (c) The execution of a specific task which is of a technical or intellectual nature but excludes an employee of a department.
Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2019 and 31 March 2020
Project title Total number of consultants Duration (work Contract value in Rand that worked on project days)
Appointment of PSP to develop the 2020-2025 1 – Vortex Training - R627 440.00 Strategic Plan and 2020-2021 Systems
Training on Professional Development Programme in 1 – Public Relations - R99 000.00 Public Relations Writing Institute of South Africa
Service provider to conduct Competency Assessment EOH Human Capital - R32 468.00 Solutions
First Aid Training of 105 employees within DID SDP Professionals - R211 312.50
Personnel recruitment for competency assessment PriceWaterhouseCoopers - R8 117.00
Request for provision of professional town plan SMEC South Africa - R1 265 692.58
Training of employees on air-conditioning and Air Conditioning - R354 682.53 refrigeration Refrigeration Academy
Change and Diversity Skills Programme I Can Consulting Services - R4 500 000.00
Forensic and investigative accounting service Madiba Motsai - R983 142.05 Masitenyane and Githi
Legal advice service Ramatshila-Mugeri - R1 810 259.33
Legal advice service Mthunzi Mashaba - R135 334.50
Legal service legal advisor/consultant POSWA - R204 823.84
Legal advice service Mncedisi Ndlovu and - R2 484 969.24 Sedumedi
Legal advice service Buthelezi Vilakazi - R1 364 090.80
Legal advice service Mogaswe and Associates - R341 825.60
Total number of projects Total individual consultants Total duration Total contract value in Rand (Work days)
15 15 - R14 423 157.97
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Table 3.15.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2019 and 31 March 2020
Project title Percentage ownership by HDI groups Percentage management Number of consultants from HDI by HDI groups groups that work on the project
Appointment of PSP to • Vortex Training Systems - 0 develop the 2020-2025 • 0% Black Strategic Plan and 2020- • 0% Women 2021 • 0% Youth • 0% Disability • EME
Training on Professional • Public Relations Institute of South - 0 Development Africa Programme in Public • 0% Black Relations Writing • 0% Women • 0% Youth • 0% Disability • EME
Service provider to • EOH Human Capital Solutions - 1 conduct competency • 100% Black assessment • 0% Women • 0% Youth • 0% Disability • QSE
First Aid Training of 105 • SDP Professionals - 1 employees within DID • 100% Black • 100% Women • 0% Youth • 0% Disability • EME
Personnel recruitment for • PriceWaterhouseCoopers - 1 (33% Black) competency assessment • 33% Black • 11% Women • 0% Youth • 0% Disability • Generic
Request for provision of • SMEC South Africa - 1 professional town plan • 82% Black • 32% Women • 0% Youth • 0% Disability • Generic
Training of employees • Air Conditioning Refrigeration - 0 on air-conditioning and Academy – refrigeration • 0% Black • 0% Women • 0% Youth • 0% Disability • EME
Change and Diversity • I Can Consulting Services – - 1 Skills Programme • 100% Black • 0% Women • 0% Youth • 0% Disability • EME
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Project title Percentage ownership by HDI groups Percentage management Number of consultants from HDI by HDI groups groups that work on the project
Forensic and investigative • Madiba Motsai Masitenyane and - 1 accounting service Githi – • 100% Black • 100% Women • 100% Youth • 0% Disability • EME
Legal advice service • Ramatshila-Mugeri – - 1 • 100% Black • 0% Women • 0% Youth • 0% Disability • EME
Legal advice service • Mthunzi Mashaba – - 1 • 100% Black • 0% Women • 0% Youth • 0% Disability • EME
Legal service legal • POSWA – - 1 advisor/consultant • 80% Black • 0% Women • 0% Youth • 0% Disability • QSE
Legal advice service • Mncedisi Ndlovu and Sedumedi – - 1 • 100% Black • 0% Women • 0% Youth • 0% Disability • QSE
Legal advice service • Buthelezi Vilakazi – - 1 • 100% Black • 100% Women • 100% Youth • 0% Disability • EME
Legal advice service • Mogaswa and Associates – - 1 • 100% Black • 0% Women • 0% Youth • 0% Disability • QSE
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Table 3.15.3 Report on consultant appointments using donor funds for the period 1 April 2019 and 31 March 2020
Project title Total Number of consultants Duration (Work days) Donor and contract value in that worked on project Rand
0 0 0 0
0 0 0 0
Total number of projects Total individual consultants Total duration (Work days) Total contract value in Rand
0 0 0 0
0 0 0 0
Table 3.15.4 Analysis of consultant appointments using donor funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2019 and 31 March 2020
Project title Percentage ownership by HDI Percentage management by HDI Number of consultants from groups groups HDI groups that work on the project
0 0 0 0
0 0 0 0
3.16 Severance packages Table 3.16.1 Granting of employee-initiated severance packages for the period 1 April 2019 and 31 March 2020
Salary band Number of Number of Number of Number of applications applications applications packages received referred to the supported by approved by MPSA MPSA Department Lower skilled (Levels 1-2) 0 0 0 0
Skilled (Levels 3-5) 0 0 0 0
Highly skilled production (Levels 6-8) 0 0 0 0
Highly skilled supervision (Levels 9-12) 0 0 0 0
Senior management (Levels 13-16) 0 0 0 0 Total 0 0 0 0
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ANNUAL FINANCIAL STATEMENTS Financial Information
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
106 ANNUAL FINANCIAL STATEMENTS ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Financial Information
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
107 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
AUDITOR GENERAL REPORT AUDITOR GENERAL REPORT
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Report of the auditor-general to the Gauteng Provincial Legislature on vote no. 15: Gauteng Department of Infrastructure Development
Report on the audit of the financial statements
Opinion 1. I have audited the financial statements of the Gauteng Department of Infrastructure Development, set out on pages 114 to 185, which comprise the appropriation statement, statement of financial position as at 31 March 2020, statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies.
2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Gauteng Department of Infrastructure Development as at 31 March 2020, and its financial performance and cash flows for the year then ended, in accordance with the Modified Cash Standard (MCS) prescribed by the National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and the Division of Revenue Act of South Africa, 2019 (Act No. 16 of 2019) (Dora).
Basis for opinion 3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of this auditor’s report.
4. I am independent of the department in accordance with sections 290 and 291 of the Code of ethics for professional accountants and parts 1 and 3 of the International Code of Ethics for Professional Accountants (including International Independence Standards) of the International Ethics Standards Board for Accountants (IESBA codes) as well as the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA codes.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Emphasis of matters 6. I draw attention to the matters below. My opinion is not modified in respect of these matters.
Material uncertainty 7. With reference to note 16.1 to the financial statements, the department is the defendant in various lawsuits. The ultimate outcome of these matters cannot presently be determined and no provision for any liability that may result was made in the financial statements.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
108 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
AUDITOR GENERAL REPORT AUDITOR GENERAL REPORT
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Restatement of prior year amounts 8. As disclosed in notes 3, 4, 17, 21, and 26 to 28 the financial statements, the corresponding figures for 31 March 2019 were restated as a result of an error in the financial statements of the department at, and for the year ended, 31 March 2020.
Payables not recognised, which exceeded voted funds to be surrendered 9. As disclosed in note 18.2 to the financial statements, payables not ecognisedr of R96 632 000 exceeded the payment term of 30 days, as required by treasury regulation 8.2.3. This amount also exceeded the R82 008 000 of voted funds to be surrendered as per the statement of financial performance by R14 624 000, which would therefore have constituted unauthorised expenditure if the amounts due had been paid on time.
Subsequent events 10. I draw attention to note 26 in the financial statements, which deals with subsequent events and specifically the possible effects of the future implications of Covid-19 on the department’s future prospects. My opinion is not modified in respect of this matter.
Responsibilities of the accounting officer for the financial statements 11. The accounting officer is esponsibler for the preparation and fair presentation of the financial statements in accordance with the MCS and the requirements of the PFMA and 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.
12. In preparing the financial statements, the accounting officer is responsible for assessing the department’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the appropriate governance structure either intends to liquidate the department or to cease operations, or has no realistic alternative but to do so.
Auditor-general’s responsibilities for the audit of the financial statements 13. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
14. A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
109 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
AUDITOR GENERAL REPORT AUDITOR GENERAL REPORT
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Report on the audit of the annual performance report Introduction and scope 15. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof, I have a responsibility to report on the usefulness and reliability of the reported performance information against predetermined objectives for selected programmes presented in the annual performance report. I performed procedures to identify material findings but not to gather evidence to express assurance. 16. My procedures address the usefulness and reliability of the reported performance information, which must be based on the approved performance planning documents of the department. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures do not examine whether the actions taken by the department enabled service delivery. My procedures also do not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters. 17. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected programmes presented in the annual performance report of the department for the year ended 31 March 2020:
Programmes Pages in the annual performance report
Programme 2: public works 40 – 52 18. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete. 19. I did not identify any material findings on the usefulness and eliabilityr of the reported performance information for this programme: • Programme 2: public works. Other matters 20. I draw attention to the matters below.
Achievement of planned targets Adjustment of material misstatements 21. I identified material misstatements in the annual performance report submitted for auditing. These material misstatements were on the reported performance information of programme 2: public works. As management subsequently corrected the misstatements, I did not raise any material findings on the usefulness and reliability of the reported performance information.
Achievement of planned targets 22. Refer to the annual performance report on pages 36 to 55 for information on the achievement of planned targets for the year and explanations provided for the under- and overachievement of a significant number of targets. This information should be considered in the context of the material findings on the usefulness and reliability of the reported performance information in paragraph 19 of this report.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
110 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
AUDITOR GENERAL REPORT AUDITOR GENERAL REPORT
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Report on the audit of compliance with legislation Introduction and scope 23. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material findings on the department’s compliance with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.
24. The material findings on compliance with specific matters in key legislation ear as follows:
Annual financial statements 25. The financialstatements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework, as required by section 40(1) (a) of the PFMA.
26. Material misstatements of disclosure items identified by the auditors in the submitted financial statement were corrected, resulting in the financial statements receiving an unqualified opinion.
Expenditure management 27. Some contractual obligations and money owed by the department were not settled within 30 days or an agreed period, as required by section 38(1)(f) of the PFMA and treasury regulation 8.2.3.
28. Effective and appropriate steps were not taken to prevent irregular expenditure of R108 011 000 as disclosed in note 22 to the financial statements, as required by section 38(1)(c)(ii) of the PFMA and treasury regulation 9.1.1. The majority of the irregular expenditure was caused by non-compliance with procurement processes on goods and services.
Other information 29. The accounting officer is esponsibler for the other information. The other information comprises the information included in the annual report. The other information does not include the financial statements, the auditor’s report and the selected programmes presented in the annual performance report that have been specifically reported in this auditor’s report.
30. My opinion on the financial statements and findings on theeported r performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.
31. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programme presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.
32. I did not receive the other information prior to the date of this auditor’s report. When I do receive and read this information, if I conclude that there is a material misstatement therein, I am required to communicate the matter to those charged with governance and request that the other information be corrected. If the other information is not corrected, I may have to retract this auditor’s report and reissue an amended report as appropriate. However, if it is corrected this will not be necessary.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
111 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
AUDITOR GENERAL REPORT AUDITOR GENERAL REPORT
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Internal control deficiencies 33. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance on it. The matters reported below are limited to the significant internal control deficiencies that resulted in the findings on the performance report and the findings on compliance with legislation included in this report.
34. The accounting officer did not exercise effective oversight to ensure that action plans were adequately implemented and monitored. This resulted in repeat audit findings on compliance with laws and regulations as well as the material misstatements to the financial statements and the annual performance report which were subsequently corrected by management.
35. Senior management did not monitor controls to ensure proper record keeping so that complete and accurate information is easily accessible and available to support the financial statements and performance report. In addition, they did not monitor the controls over daily and monthly processing and reconcile transactions to support the system of internal control on immovable assets, and in compliance with laws and regulations on expenditure management.
Other reports 36. I draw attention to the following engagements conducted by various parties that had, or could have, an impact on the matters reported in the department’s financial statements, reported performance information, compliance with applicable legislation and other related matters. These reports did not form part of my opinion on the financial statements or my findings on the reported performance information or compliance with legislation.
37. The department initiated a number of investigations into allegations of possible unethical behaviour, and matters of procurement and contract management. These investigations covered the 2017-18 and 2019-20 financial years, and were at various stages of completion at the date of this auditor’s report.
38. The department initiated a number of investigations into allegations of emergency procurement irregularities in response to the COVID-19 pandemic outbreak. These investigations covered the portion of 2020-21 financial year and were at the various stages of completion at the date of this report.
Johannesburg
31 October 2020
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
112 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
AUDITOR GENERAL REPORT AUDITOR GENERAL REPORT
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Annexure – Auditor-general’s responsibility for the audit 1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements and the procedures performed on reported performance information for selected programmes and on the department’s compliance with respect to the selected subject matters.
Financial statements 2. In addition to my responsibility for the audit of the financial statements as described in this auditor’s report, I also: • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error; design and perform audit procedures responsive to those risks; and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the department’s internal control • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the accounting officer • conclude on the appropriateness of the accounting officer’s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists relating to events or conditions that may cast significant doubt on the ability of the Gauteng Department of Infrastructure Development to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify my opinion on the financial statements. My conclusions are based on the information available to me at the date of this auditor’s report. However, future events or conditions may cause a department to cease operating as a going concern • evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and determine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Communication with those charged with governance 3. I communicate with the accounting officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
4. I also confirm to the accounting officer that I have complied withelevant r ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and, where applicable, actions taken to eliminate threats or safeguards applied.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
113 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 020 893 401 751
020 893
R’000 Actual Actual 3 Expenditure Expenditure 2018/19 036 964 3 405 042 2
18 430 055 394 Final R’000
Final 3 Appropriation Appropriation 97.6% 3 98.8% 2 86.7% 297 344 284 980 97.7% 334 578 334 162 % as % of final appropriation R’000 Variance Expenditure 342 973 82 013 722 784 32 658
R’000 Actual 342 973
Expenditure 3 Actual 2018/19 Expenditure 424 986 3 755 442 2
3 Final 2 R’000 19 327 444 313
Appropriation Final 2019/20 Appropriation Appropriation per programme Appropriation 21 000 359 631 351 370 8 261 (21 000) 309 913 268 819 41 094 2019/20 R’000 Virement R’000 Funds Shifting of 424 986 755 442 338 631 330 913
3 R’000 Adjusted Appropriation orks Public W Expanded Public W Programme PRF Receipts Aid assistance revenue)Actual amounts per statement of financial performance (total 3 ADD Aid assistance without funding approved Prior year unauthorised expenditure Actual amounts per statement of financial performance (total expenditure) TOTAL (brought forward) (brought TOTAL Reconciliation with statement of financial performance ADD Departmental receipts 3. TOTAL Programme 1. Administration orks Infrastructure 2 2.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
114 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 2 185 131 378 1 902 9 123 2 250 6 715 3 213 997 233 027 434
R’000 Actual expenditure 2 2018/19 252 150 393 1 950 9 124 2 000 8 237 3 217 959 409033 479 1 1
Final R’000 Appropriation % as % of final appropriation 2768 96.7% 11 99.3% 99.7% 98 86.0% 712 19.6% 126 98.3% 15 031 15 000 104 48.1% 220 98.8% 222 69.9% 146 99.7% 39 830 40 668 (240) 100.6% 30 394 30 041 R’000 Variance Expenditure 96 773 173 602 517 9 332 3 089 7 321 4 146 (1 270) 144.2% 019 508120 132 46 517 10 234 97.7% 99.1% 1 1
R’000 Actual Expenditure 800 885 700 200 739 9 400 3 100 7 447 2 876 066 025130 365 2 1
Final R’000 2019/20 Appropriation - 934 855 899 318 35 537 96.2% 924 961 968 856 - 2 ------147 109 118 851 28 258 80.8% 183 692 183 626 - 1 - - 39 978 40 218 - 18 200 17 980 - - - 49 550 49 404 000 999 688 988 444 11 244 98.9% 942 070 905 335 000) 130 677 131 688 (1 011) 100.8% 91 409 122 099
Appropriation per economic classification Appropriation R’000 Virement - 18 300) 15 500) 765) 600) 300) 694) 300) 222) 986)
(100) (631)
2 000 2 876 R’000 Funds Shifting of - 300 721 2 6504 400 (1 (1 3 300 (2 3 000 (2 93 377 52 300 (15 40 609 16 200 11 000 (1 10 141 (2 32 000 17 550 987 646 (52 791) 119 011130 365 (52 036 988 (52 179 331 (32
R’000 2 1 1 Adjusted Appropriation Social contributions Goods and services Administrative fees Fleet services Salaries and wages Computer services Minor assets Bursaries: Employees Catering: Departmental Agency and support / Audit costs: External Consultants: Business Advertising Communication Legal services Contractors activities services outsourced and advisory services Compensation of employees Economic classification payments Current
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
115 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - - 73 599 586 141
6 7 784 1 143 6 657 2 582 R’000 Actual expenditure - - - 2018/19 75 611 683 143
7 7 871 1 147 7 832 2 672 Final R’000 Appropriation - 100% % as % of final appropriation - - 3 99.8% 4 99.7% 5 63.1% 2 71.4% 16 99.5% 24 88.7% 231 93.7% 422258 86.8% 99.9% 384 756 384 752 308) 99.5% 203 213 251 121
(370) 102.5% 14 686 14 184 7 770 14.9% R’000 Variance Expenditure - 8 5 17 188 1 355 2 936 1 725 1 548 3 426 2 773 R’000 Actual Expenditure - 7 13 17 212 9 125 2 952 1 728 1 552 3 657 3 195 Final R’000 2019/20 Appropriation - 223 026- 224 334 (1 - - - - 14 587 14 957 ------393 800 393 542 Appropriation per economic classification Appropriation R’000 Virement - 6 17 107 470 512 (44) 301) 520) 300)
(318) (246) (306) 8 800 R’000 Funds Shifting of - - 1 57 530 1 621 1 040 3 903 3 501 10 426 (1 14 117 10 252 (7 385 000 253 546 (30 R’000 Adjusted Appropriation Inventory: Clothing Transport provided: provided: Transport Inventory: Farming Operating payments Travel and subsistence Travel Training and Training Venues and facilities Venues Inventory: Food and Inventory: Fuel, oil and Inventory: Materials and Consumable supplies Consumable: Stationery, Consumable: Stationery, Operating leases Property payments Property material and supplies Departmental activity supplies development food supplies gas supplies printing and office supplies
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
116 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - 4 4 401 943
943 3 912 2 340 1 572 R’000 Actual expenditure - - 4 4 2018/19 969 969 4 413 2 570 1 843 Final R’000 Appropriation - - - - 7.2% 7.2% % as % of final appropriation - - - - 889283 99.9%283 100.0%283 905 819 100.0% 901 402 100.0% 905 313 901 402 901 901 402 901 401 901 402 747 747 606 91.3% 247 95.9% 359 64.1% R’000 Variance Expenditure - - - - 58 58 641 6 348 5 706 090 440 084 092 084 092 084 092
R’000 Actual Expenditure - - - - 805 805 6 954 5 954 1 000 091 329084 375 1 1 084 375 1
Final R’000 2019/20 Appropriation -- 205 985- 205 985 175 766 175 766 30 219 30 219 85.3% 85.3% 134 874 134 874 76 229 76 229 - 1 -- 1 084 375 1 1 - - 1 ------267 413 232 808 34 605 87.1% 171 736 114 033 Appropriation per economic classification Appropriation R’000 Virement - (4) (4) 830) 830)
(195) (195) (627) 1 224 1 851 R’000 Funds Shifting of - 4 4 1 000 1 000 5 730 4 103 1 627 219 815 (13 060 109 31 220 054 375054 375 30 000 30 000 245 866 21 547 219 815 (13
R’000 1 1 1 054 375 30 000 Adjusted Appropriation Municipal bank Departmental agencies Social benefits Other transfers to accounts and accounts households Buildings Other fixed structures Municipalities Departmental agencies Interest Interest Rent on land Households and accounts Provinces and Provinces municipalities Buildings and other fixed structures Interest and rent on land and rent Interest Transfers and subsidies Transfers 1 Payments for capital assets
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
117 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 846
8 660 3 298 4 314 25 030 893
R’000 Actual expenditure - - 2018/19 896
7 643 3 323 036 964 2
Final R’000 Appropriation % as % of final appropriation 8 99.8% 1 99.5% 219 93.3% 4 167 86.7% 29 219 29 144 4 159 84.9% 25 R’000 Variance Expenditure 218 3 859 342 973 82 013 97.6% 3
R’000 Actual Expenditure 219 3 867 424 986 3
Final R’000 2019/20 Appropriation - 30 036 29 817 - 3 -- 31 392 27 225 - - 27 525 23 366 Appropriation per economic classification Appropriation R’000 Virement - 219 5 341 3 867 1 474 R’000 Funds Shifting of - 30 036 - 26 051 26 051 424 986
R’000 3 Adjusted Appropriation Transport equipment Transport Other machinery and &other Software equipment intangible assets Machinery and equipment Software & other Software Intangible assets Payments for financial assets Total
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
118 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - 144 943
8 660 4 314 3 912 997 233 027 434
R’000 Actual expenditure - 4 2018/19 219 29 969
7 643 4 413 959 409033 479 1 1
Final R’000 Appropriation - 7.2% % as % of final appropriation - 1 99.3% 89 99.9% 905 819 905 313 219 99.3% 284 100.0% 901 402 901 401 747 606 91.3% 4 167 86.7% 29 R’000 Variance Expenditure - 58 218 6 348 019 508120 132 46 517 10 234 97.7% 99.1%090 440 1 084 092 1
R’000 Actual Expenditure - 219 805 6 954 066 025130 365 2 1 091 329084 375 1 1
Final R’000 Appropriation - - 30 036 29 817 - 2 - 934 855 899 318 35 537 96.2% 924 961- 968 856 - 205 985 31 392 175 766 27 225 30 219 85.3% 134 874 76 229 - 1 -- 1 1 - - - - 267 413 232 808 34 605 87.1% 171 736 114 033 2019/20 R’000 Statutory Appropriation per economic classification Statutory Appropriation Virement (4) 219 791) 830) 986)
(195)
5 341 1 224 30 036 R’000 Funds Shifting of - 4 1 000 5 730 987 646 (52 119 011130 365 (52 060 109054 375 31 220 30 000 245 866 21 547 219 815 (13
R’000 1 2 1 Adjusted Appropriation Compensation of employees Goods and services Software & other Software Intangible assets Interest and rent on land and rent Interest Machinery and Equipment 26 051 Provinces and Provinces municipalities Departmental agencies and accounts Households Buildings and other fixed structures Payments for financial assets Economic classification payments Current Transfers and subsidies Transfers 1 Payments for capital assets
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
119 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 131 137 9 034 1 902 9 123 2 250 R’000 Actual expenditure 2018/19 150 138 9 160 1 950 9 124 2 000 Final R’000 Appropriation 4.4% % as % of final appropriation 2768 96.7% 11 99.3% 99.7% 431104 96.7% 99.4% 16 112 16 100 104 48.1% 482 518 99.8% 203 727 200 105 361) 114.6% 24 792 25 627
7 726 97.7% 309 306 309 028 2 660 97.4% 93 921 93 546 8 261 97.7% 334 578 334 162 3 642 98.9% 297 787 293 767 3 878 98.1% 178 935 174 478 R’000 Variance Expenditure 96 22 773 9 332 3 089 R’000 Actual Expenditure 800 200 504 9 400 3 100 Final R’000 Appropriation - - - - 102 011 99 351 - - - 23 013 26 374 (3 Programme 1: ADMINISTRATION Programme 2 4003 100 12 968 16 016 12 537 15 912 2019/20 R’000 Virement - 21 000 359 631 351 370 - 21 000 227 668 227 151 - 21 000 204 655 200 777 - 4 400 428 500) 600) 300)
(828) 15 500 330 647 322 921 (981) (981) 21 000 330 179 326 537 R’000 Funds Shifting of 200 500 4 400 (1 3 300 (2 10 168 12 488 11 000 (1 23 013 315 975 102 992 310 160 206 668 183 655 R’000 Adjusted Appropriation Office of the MEC Corporate Support Management of the Department Administrative fees Minor assets Bursaries: Employees Advertising Audit costs: External Salaries and wages Social contributions Goods and services Compensation of employees
Sub programme 1. 2. 3. Total for sub programmesTotal 338 631 Economic classification payments Current
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
120 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - - - 8 2 23 296 1 414 2 023 6 697 2 989 3 182 5 365 R’000 Actual expenditure - - - - 2 8 2018/19 27 303 1 417 2 023 7 765 2 991 3 185 5 449 Final R’000 Appropriation - - - - % as % of final appropriation - - - 3 74.5% 2 60.0% 40 99.3% 13 43098 13 419 86.0% 94 89.6% 38 99.8% 34 99.4% 19 99.3% 212 58.5% 415 84.6% 120 99.6% 27 830 28 668 138 98.5% 200 R’000 Variance Expenditure - - - - 8 3 602 814 302 5 866 2 280 5 489 2 857 8 951 R’000 Actual Expenditure - - - 5 11 700 908 514 200 5 906 2 695 5 523 2 876 9 089 Final R’000 Appropriation ------18 000 17 962 - - - 30 300 30 180 ------Programme 1: ADMINISTRATION Programme 2019/20 R’000 Virement - - - 6 4 (44) 094) 300) 495)
(806) (131) 2 923 2 000 2 876 R’000 Funds Shifting of - - - - 1 55 508 200 3 501 2 600 7 000 (1 3 000 (2 9 220 2 403 (1 16 000 20 000 10 300 R’000 Adjusted Appropriation Catering: Departmental Agency and support / Communication Computer services Consultants: Business Legal services Contractors activities outsourced services outsourced and advisory services Consumable: Stationery, Consumable: Stationery, printing and office supplies Entertainment Fleet services Housing Inventory: Clothing material and supplies Inventory: Farming supplies Farming Inventory: Inventory: Food and food supplies Inventory: Materials and supplies Consumable supplies
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
121 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - - - - 73 333 173 116 116 1 862 1 766 7 784 5 006 1 529 1 115 1 862 R’000 Actual expenditure - - - - - 2018/19 75 200 400 175 139 139
1 882 7 871 5 009 1 800 1 117 2 200 2 Final R’000 Appropriation - - - - - 7.0% 7.0% % as % of final appropriation - - - - - 1 99.2% 1 99.9% 1 99.7% 16 99.5% 327 80.5% 211 95.8% 111 94.6% 359 64.1% 465 465 470 84.5% 470 84.5% 4 148 84.2% 34 591 35 559 R’000 Variance Expenditure - - - - - 35 35 131 641 177 1 351 2 936 4 789 1 927 1 341 2 568 2 568 R’000 Actual Expenditure - - - - - 132 177 500 500 1 677 2 952 5 000 2 038 1 000 1 342 3 038 3 038 Final R’000 Appropriation ------29 196 22 048 ------Programme 1: ADMINISTRATION Programme 2019/20 R’000 Virement ------77 132 567 342 196 567 567 075) 300)
R’000 Funds Shifting of ------100 500 500 5 000 1 471 1 000 1 000 2 752 (1 2 471 2 471 10 252 (7 26 000 R’000 Adjusted Appropriation Social benefits Other transfers to households Operating leases Training and development Training Operating payments Property payments Property Venues and facilities Venues Transport provided: provided: Transport Departmental activity Travel and subsistence Travel Rental and hiring Buildings Other fixed structures Interest Payments for capital assets Buildings and other fixed structures Interest and rent on land and rent Interest Transfers and subsidies Transfers Households
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
122 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - - - - 362
8 660 1 537 2 974 25 R’000 Actual expenditure ------2018/19 409
7 643 1 539 Final R’000 Appropriation - - - - % as % of final appropriation - - - - 5 99.6% 1 97.8% 1 99.5% 4 142 83.3% 25 4 147 84.1% 26 948 26 899 8 261 97.7% 334 578 334 162 R’000 Variance Expenditure - - - - 35 217 1 339 R’000 Actual Expenditure - - - - 36 218 1 344 Final R’000 Appropriation - 24 816 20 674 - - 26 160 22 013 ------Programme 1: ADMINISTRATION Programme 2019/20 R’000 Virement - - - - - 21 000 359 631 351 370 36 160 218 184)
1 344 R’000 Funds Shifting of ------26 000 26 000 (1 338 631 R’000 Adjusted Appropriation Transport equipment Transport Other machinery and equipment &other Intangible Software assets Heritage assets Machinery and equipment Specialised military assets Biological assets Land and subsoil assets Software & other Intangible Software assets Payments for financial assets Total
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
123 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - - - 974 939 939 8 095 7 121 R’000 R’000 Actual Actual expenditure expenditure - - - - 2018/19 2018/19 940 940 8 220 7 122 1 098 Final Final R’000 R’000 Appropriation Appropriation - 100% % % as % of final as % of final appropriation appropriation - - - 100.0% 3 99.3% 3 99.3% 189 99.9% 181 647 178 027 428 96.5% 245 97.0% 183 95.3% 3 113 99.0% 273 487 269 603 R’000 R’000 Variance Expenditure Variance Expenditure - 384 384 397 397 8 053 3 703 R’000 R’000 Actual Actual Expenditure Expenditure - 384 384 400 400 8 298 3 886 Final Final R’000 R’000 Appropriation Appropriation 1.1 Office of the MEC 1.2 Corporate Support ------2 400 2 400 12 184 11 756 2019/20 2019/20 R’000 R’000 Virement Virement - 15 500 204 152 203 963 - - 384 384 400 400 (384) (828) 15 500 302 176 299 063 (384) R’000 R’000 Funds Funds Shifting of Shifting of - - - - - 5 898 4 270 10 168 188 652 287 504 R’000 R’000 Adjusted Adjusted Appropriation Appropriation Compensation of employees Compensation of employees Goods and services Interest and rent on land and rent Interest Households Machinery and equipment Economic classification payments Current Economic classification payments Current Transfers and subsidies Transfers Payments for capital assets
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
124 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - 862 660 116
2 974 1 862 8 1 R’000 Actual expenditure - - - 2018/19 139 2 200 7 643 2 200 Final R’000 Appropriation - - 7.0% % as % of final appropriation - - 1 99.5% 1 97.8% 465 469 81.0% 469 81.0% 2 459 97.5% 91 701 91 460 4 144 83.9% 33 619 34 589 4 243 83.9% 25 976 25 929 R’000 Variance Expenditure - - 35 35 217 2 002 2 002 R’000 Actual Expenditure - - 36 500 218 2 471 2 471 Final R’000 Appropriation 1.2 Corporate Support - - 97 524 95 065 -- 25 782 21 638 - - -- 25 746 21 603 - - 2019/20 R’000 Virement - - - - - 36 218 (828) (254) (218) R’000 Funds Shifting of - - - - 500 2 471 2 471 98 352 26 000 26 000 R’000 Adjusted Appropriation Interest and rent on land and rent Interest Goods and services Buildings and other fixed structures Machinery and equipment & Intangible Software assets Provinces and Provinces municipalities Households Payments for capital assets Payments for financial assets Transfers and subsidies Transfers
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
125 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - 31 31 1 112 R’000 Actual expenditure - - 32 32 1 122 Final R’000 Appropriation % as % of final appropriation 1 99.5% 1 99.5% 1 92.9% 1 92.9% 84 99.4% 14 958 14 957 18 97.0% 102 99.4% 16 080 16 069 R’000 Variance Expenditure 13 13 583 182 182 R’000 Actual Expenditure 14 14 601 183 183 Final R’000 Appropriation - - - - 1.3 Management of the Department 3 100 15 819 15 717 3 100 15 218 15 134 2019/20 R’000 Virement - 14 14 231 231 183 183 R’000 Funds Shifting of - - - - 370 12 488 12 118 R’000 Adjusted Appropriation Compensation of employees Goods and services Households Machinery and equipment Economic classification payments Current Transfers and subsidies Transfers Payments for capital assets
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
126 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - 31 48 20 18 1 490 519 618 401 751 418 568
R’000 Actual expenditure - - 2018/19 32 25 114 472 1 502 522 756 1 405 042 2 364 482 1
Final R’000 Appropriation - - - 8.9% % as % of final appropriation - - 4 85.2% 25 99.9% 12 000 12 000 76 94.2% 526 100.0% 1 230 37.7% 182 777) 100.6% 644 831 689 152 290)
3 339 99.5% 610 220 610 123 4 295 99.4% 669 080 633 843 2 0675 561 99.9% 99.3% 1 718 821 728 589 1 266 98.8% 49 741 94 746 R’000 Variance Expenditure - 21 18 139 1 224 1 290 (1 698 744 722 784 32 658457 484 98.8% 2
R’000 Actual Expenditure - - - 25 369 200 1 300 699 270 1 755 442 2 459 550 1
Final R’000 Appropriation - 673 572 670 233 - 1 - 675 046- 670 751 679 356- 683 133- (3 - 779 889 774 328 - 2 - 1 - 382 600 353 807 28 793 92.5% 272 066 272 010 - 19 250 19 225 - - - 104 843 103 577 - - - Programme 2: Public Work Infrastructure 2: Public Work Programme 2019/20 R’000 Virement - - - - 12 500) 300) 814) 781) 700) 009)
(100)
3 000 7 250 R’000 Funds Shifting of - - 13 100 200 2 150 (1 3 000 (1 12 000 52 543 52 300 779 889 696 270 755 442 478 559 (19 368 100691 072 14 500 (17 727 346 (52 698 170 (18
R’000 1 1 Adjusted Appropriation Construction Maintenance Immovable Asset Management Social contributions Salaries and wages Compensation of employees Legal services Administrative fees Catering: Departmental activities Computer services Minor assets Contractors Communication Consultants: Business and advisory services
Total for sub programmesTotal 2 Economic classification payments Current Sub programme 1. 3. 2. Goods and services
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
127 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - - - 28 413 133 559 2 405 1 664 3 761 R’000 Actual expenditure - - - - 2018/19 30 508 135 649 3 403 1 710 4 932 Final R’000 Appropriation - - - - % as % of final appropriation - - - 100.0% - - 100.0% 2 3 98.6% 6 98.8% 23 71.3% 47 100.0% 379 747 379 746 622 58.5% 137 95.0% 540) 105.3% 23 625 23 364 308) 100.6% 203 213 251 121
(996) 107.9% 12 734 12 351 R’000 Variance Expenditure - - - - 2 57 17 877 207 494 2 605 R’000 Actual Expenditure - - - 2 2 80 17 210 500 1 499 2 742 Final R’000 Appropriation - - - - 223 026 224 334 (1 - 12 545 13 541 - - - 28 789 30 329 (1 ------388 800 388 753 Programme 2: Public Work Infrastructure 2: Public Work Programme 2019/20 R’000 Virement - - 2 17 170 500 000) 301) 520)
(450) (500) 1 545 1 242 8 800 R’000 Funds Shifting of - - - - 2 40 530 2 000 (2 2 800 (1 1 500 11 000 29 289 380 000 253 546 (30 R’000 Adjusted Appropriation Agency and support / services outsourced Housing and subsistence Travel Inventory: Food and food supplies Inventory: Clothing material and supplies Operating payments Fleet services Venues and facilities Venues Inventory: Fuel, oil and gas Rental and hiring Inventory: Materials and supplies Consumable supplies Consumable: Stationery, Consumable: Stationery, printing and office supplies Operating leases Property payments Property
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
128 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - - - - 43 827 827 2 048 2 005 R’000 Actual expenditure - - - 4 4 2018/19 43 830 830 2 109 2 066 Final R’000 Appropriation ------7.5% 7.5% % as % of final appropriation ------89 97.3% 89 97.3% 372283 100.0%283 100.0%283 903 515 100.0% 901 402 100.0% 903 449 901 402 901 401 901 402 901 401 901 401 282 282 R’000 Variance Expenditure ------23 23 3 141 3 141 087 234 084 092 084 092 084 092
R’000 Actual Expenditure ------305 305 3 230 3 230 087 605084 375 1 084 375 1 084 375 1 1
Final R’000 Appropriation - 1 -- 1 1 - - 1 ------Programme 2: Public Work Infrastructure 2: Public Work Programme 2019/20 R’000 Virement - - - (4) (4) 592 (195) (195) (627) 1 219 R’000 Funds Shifting of - - - 4 4 500 500 627 2 638 2 011 057 017054 375 30 588 30 000
R’000 1 054 3751 054 375 30 000 30 000 Adjusted Appropriation Municipal bank Municipal agencies and accounts funds Municipalities Social security funds Departmental agencies Provinces and municipalitiesProvinces 1 Interest Departmental agencies and accounts Non-profit institutions Non-profit Social benefits Other transfers to households Interest and rent on land and rent Interest Transfers and subsidies Transfers 1 Households
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
129 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - 484 2 165 1 681 1 340 401 751
R’000 Actual expenditure - - 2018/19 487 2 171 1 684 405 042 2
Final R’000 Appropriation - - 100% % as % of final appropriation - - - 1 99.9% 1 99.4% R’000 Variance Expenditure - - 208 2 301 2 093 722 784 32 658 98.8% 2
R’000 Actual Expenditure - - 209 2 302 2 093 755 442 2
Final R’000 Appropriation -- 208 287- 205 985 178 067 205 985 175 766 30 220 175 766 30 219 85.5% 30 219 85.3% 137 045 85.3% 134 874 78 394 134 874 76 229 76 229 - 2 - - - - - Programme 2: Public Work Infrastructure 2: Public Work Programme 2019/20 R’000 Virement - - - 158 830) 830) 579)
2 251 2 093 R’000 Funds Shifting of - - 51 51 755 442 219 815 (13 219 815 (13
R’000 2 Adjusted Appropriation Buildings Other fixed structures Transport equipment Transport Other machinery and equipment Buildings and other fixed structures Machinery and equipment Payments for capital assets 219 866 (11 Payments for financial assets Total
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
130 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - - 449 204 204 R’000 Actual expenditure - - - 2018/19 452 234 234 Final R’000 Appropriation - - - 100% % as % of final appropriation - - - - 55 77.1% 55 77.1% 254 99.9% 136 506 195 128 323 99.7% 96 840 106 500 (69) 100.1% 39 666 88 628 R’000 Variance Expenditure - - - 51 187 187 R’000 Actual Expenditure - - - 51 242 242 Final R’000 2.1 Construction Appropriation -- 204 301 204 250 175 817 175 766 28 484 28 484 86.1% 86.1% 135 326 134 874 76 678 76 229 - 178 057 177 803 - - 117 648 117 325 - 60 409 60 478 - - - - - 2019/20 R’000 Virement ------830) 830)
9 330 R’000 Funds Shifting of - - - 51 242 242 98 648 19 000 51 079 149 727 28 330 218 080 (13 R’000 Adjusted Appropriation Buildings and other fixed structures Machinery and equipment & Intangible Software assets Compensation of employees Goods and services Interest and rent on land and rent Interest Provinces and municipalities Provinces Households Economic classification Payments Current Payments for financial assets Transfers and subsidies Transfers Payments for capital assets 218 131 (13
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
131 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - 1 754 1 754 1 662 1662 1 340 R’000 Actual expenditure - - 4 2018/19 1 758 1 754 1 664 1 664 Final R’000 Appropriation - - % as % of final appropriation - 1 100.0% 1 100.0% 1 99.9% 1 602 99.8% 606 798 605 367 3 056 99.5% 558 201 558 377 1 736 54.7% 1 735 R’000 Variance Expenditure - - 2 587 2 587 2 099 2 099 R’000 Actual Expenditure - 2 588 2 588 3 835 1 735 2 100 Final R’000 2.2 Maintenance Appropriation - 667 149 665 547 - -- 595 146 72 003 592 090 73 457 (1 454) 102.0% 48 597 46 990 - - - - - 2019/20 R’000 Virement - (4) 588 592 000) 188)
1 812 2 100 2 100 R’000 Funds Shifting of - 4 2 000 1 996 1 735 1 735 70 191 687 337 (20 R’000 Adjusted Appropriation Provinces and municipalities Provinces Departmental agencies and accounts Households Buildings and other fixed structures Machinery and equipment Compensation of employees 617 146 (22 Economic classification payments Current Goods and services on land and rent Interest and subsidies Transfers Payments for capital assets Payments for financial assets
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
132 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - 90 54 54 827 R’000 Actual expenditure - - 2018/19 55 55 121 830 Final R’000 Appropriation - - - 7.5% % as % of final appropriation - - - 100.0% - 32 92.0% 211 100.0% 621 178 618 073 315283 100.0% 100.0% 902 523 901 402 901 491 901 401 282 253) 100.4% 556 568 553 534
2 182 96.7% 63 780 63 712 R’000 Variance Expenditure - - - 23 368 151 084 460 084 092
R’000 Actual Expenditure - - - 305 400 151 084 775084 375 1 1
Final R’000 Appropriation - 614 344- 614 133 546 944 549 197 (2 -- 1 1 - - 67 095 64 913 - - - - - 2.3 Immovable Asset Management 2019/20 R’000 Virement - - - - 151 956) 151)
(195)
3 000 R’000 Funds Shifting of - - - - 500 400 64 095 054 775054 375 30 000 30 000 641 495 (27 576 900 (29
R’000 Adjusted Appropriation Interest and rent on land and rent Interest Compensation of employees Provinces and municipalitiesProvinces Households 1 Goods and services Buildings and other fixed structures Machinery and equipment Economic classification payments Current Payments for capital assets Transfers and subsidies Transfers 1 Payments for financial assets
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
133 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 ------62 91 1 726 R’000 Actual expenditure ------2019/20 65 99 Final R’000 Appropriation - - - - - % as % of final appropriation - - - - 100.0% - - 7 96.7% 10 95.9% 4 1553 071 96.6% 97.4% 110 931 94 055 98 740 97 014 2 271 98.3% 67 770 66 557 1 084 61.6% 16 876 R’000 Variance Expenditure - - - - - 12 193 231 1 737 R’000 Actual Expenditure - - - - - 12 200 241 2 821 Final R’000 Appropriation - 153 488 116 835 36 653 76.1%-- 186 209 141 586 186 158 113 361 28 225 80.1% 178 991 178 973 ------000) 174 280 135 457000) 38 823000) 122 808000) 77.7% 119 987 118 653 229 574 116 916 218 423 000) 309 913000) 268 819 276 296 41 094 235 488 86.7% 40 808 297 344 85.2% 284 980 297 140 284 898
(21 2019/20 R’000 Programme 3: Expanded Public Works Programme 3: Expanded Public Works Programme Virement - (21 -- (6 (15 - - - - - 12 100 921) (7 996) 145) 996) (21
R’000 Funds Shifting of ------200 141 83 712 65 921 (14 000) 135 633 133 362 17 821 330 913 330 292143 808 (32 125 987 186 484 (32 174 731 (33 R’000 Adjusted Appropriation Salaries and wages Social contributions Administrative fees Entertainment Advertising Minor assets Audit costs: External Bursaries: Employees Catering: Departmental Communication Agency and support / activities outsourced services outsourced Compensation of employees Goods and services Sub programme Support 3.1 Programme Total for sub programmes Total Economic classification payments Current 3.2 Community Development 247 201 (65
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
134 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 ------67 80 80 1 312 4 171 1 482 R’000 Actual expenditure ------2019/20 70 104 2 104 2 104 2 100 100 1 320 4 181 1 483 Final R’000 Appropriation ------6.4% % as % of final appropriation - - 102.9% ------2 99.8% 3 99.3% 48 93.0% 48 93.0% 48 93.0% 19 99.4% 300 17.8% 237 99.3% 1 162 44.7% 6 948 R’000 Variance Expenditure ------7 65 938 478 638 638 638 427 1 549 2 911 R’000 Actual Expenditure ------7 365 686 686 686 430 2 100 7 426 1 551 2 930 Final R’000 Appropriation ------32 930 32 693 - - - - - 2019/20 R’000 Programme 3: Expanded Public Works Programme 3: Expanded Public Works Programme Virement ------7 30 65 65 65 430 2 930 R’000 Funds Shifting of ------32 930 - - - - - 365 621 621 621 2 100 7 426 1 521 R’000 Adjusted Appropriation Fleet services Housing Inventory: Clothing Consumable supplies Property payments Property Transport provided: provided: Transport Travel and subsistence Travel material and supplies Departmental activity Social benefits Other transfers to households Buildings Other fixed structures Transport equipment Transport Transfers and subsidies Transfers institutions Non-profit Households Payments for capital assets Buildings and other fixed structures Machinery and equipment
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
135 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - - - - 80 R’000 R’000 Actual Actual expenditure expenditure - - - 2019/20 2018/19 58 58 100 Final Final R’000 R’000 Appropriation Appropriation - % % as % of final as % of final appropriation appropriation - 100.0% - 2 99.7% 2 99.7% 15 99.4% 219 99.3% 264 99.7% 41 090 41 066 2 035 98.0% 67 712 66 557 1 771 87.5% 22 622 25 491 R’000 R’000 Variance Expenditure Variance Expenditure - 1 612 612 2 485 R’000 R’000 Actual Actual Expenditure Expenditure - 1 614 614 2 500 Final Final R’000 R’000 Appropriation Appropriation 3.1 Programme Support 3.1 Programme - - 30 000 29 781 - -- 88 405 88 141 - - 000) 309 913 268 819 41 094 86.7% 297 344 284 980 000) 14 113 12 342 000) 102 518 100 483
(14 2019/20 2019/20 R’000 R’000 Programme 3: Expanded Public Works Programme 3: Expanded Public Works Programme Virement Virement - (21 - 1 65 65 2 500 R’000 R’000 Funds Funds Shifting of Shifting of - - 30 000 - - 549 549 28 113 55 050 33 355 83 163 33 355 (14 330 913 R’000 R’000 Adjusted Adjusted Appropriation Appropriation Other machinery and equipment Interest and rent on land and rent Interest Compensation of employees Goods and services Households Software and other Intangible Software assets Payments for financial assets Total Economic classification payments Current Transfers and subsidies Transfers
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
136 APPROPRIATION STATEMENT APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 ------R’000 R’000 Actual Actual expenditure expenditure ------2018/19 2018/19 84 309 73 249 Final R’000 Final R’000 Appropriation Appropriation - - % 44.1% 145 119 145 092 77.7%97.8% 229 428 218 341 % as % of final appropriation as % of final appropriation - - 100.0% 15 99.4% 234 99.3% 219 99.3% - R’000 Variance Expenditure R’000 Variance Expenditure - 1 - 2 485 R’000 Actual R’000 Actual Expenditure Expenditure - 1 - 2 500 65 083 28 694 36 389 Final R’000 Final R’000 Appropriation Appropriation 3.1 Programme Support 3.1 Programme -- 32 500 32 266 - 30 000 29 781 - 3.2 Community Development - - 000) 108 695 106 311 2 384 000) 173 778 135 005 38 773
2019/20 R’000 2019/20 R’000 Virement Virement - - (7 1 351) 351) (7
2 500 R’000 Funds R’000 Funds Shifting of Shifting of - - - 32 500 - - 30 000 131 434 (66 247 129 (66 115 695 R’000 R’000 Adjusted Adjusted Appropriation Appropriation Goods and services Buildings and other fixed structures Interest and rent on land and rent Interest Compensation of employees Machinery and equipment Software & other Intangible Software assets Payments for capital assets Economic classification payments Current Payments for financial assets
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
137 APPROPRIATION STATEMENT NOTES TO THE APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - 2 2 80 80 R’000 Actual expenditure - - 46 46 2018/19 100 100 Final R’000 Appropriation - - 99.3% 36.1% 36.1% 99.3% % as % of final appropriation - - 3 3 46 46 R’000 Variance Expenditure - - 26 26 427 427 R’000 Actual Expenditure - - 72 72 430 430 Final R’000 Appropriation 3.2 Community Development ------2019/20 R’000 Virement - - - - 430 430 R’000 Funds Shifting of - - - - 72 72 R’000 Adjusted Appropriation Machinery and equipment Households Buildings and other fixed structures Payments for financial assets Payments for capital assets Transfers and subsidies Transfers
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
138 APPROPRIATION STATEMENT NOTES TO THE APPROPRIATION STATEMENT
For the year ended • 31 March 2020 For the year ended • 31 March 2020
1. Detail of transfers and subsidies as per Appropriation Act (after Virement): Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-H) to the Annual Financial Statements. 2. Detail of specifically and exclusively appropriated amounts voted (after Virement): Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements. 3. Detail on payments for financial assets Detail of these transactions per programme can be viewed in the note on Payments for finan- cial assets to the Annual Financial Statements. 4. Explanations of material variances from Amounts Voted (after Virement):
Per programme: Final Actual Variance Variance as a % Appropriation Expenditure of Final Approp.
R’000 R’000 R’000 %
4.1.1 Administration 359 631 351 370 8 261 2
MEC 12 968 12 537 431 3
Corporate Support 330 647 322 921 7 726 2
Management of the Department 16 016 15 912 104 1
The programme underspent due to improved budget management and cost containment measures.
Final Actual Variance Variance as a % Appropriation Expenditure of Final Approp.
R’000 R’000 R’000 %
4.1.2 Public works Infrastructure 2 755 442 2 722 784 32 658 1
Construction 382 600 353 807 28 793 8
Maintenance 673 572 670 233 3 339 0
Immovable Assets Management 1 699 270 1 698 744 526 0
The under expenditure is due to delays in implementation of Infrastructure projects but an amount of R21 million has been requested for rollover into the 2020/21 financial year
Final Actual Variance Variance as a % Appropriation Expenditure of Final Approp. R’000 R’000 R’000 % 4.1.3 Expanded Public Works Programme 309 913 268 819 41 094 13
Programme Support 135 633 133 362 2 271 2
Community Development 174 280 135 457 38 823 22
The under expenditure is due to delays fluctuating EPWP beneficiaries numbers which also impacted the training programme.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
139 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS STATEMENT OF FINANCIAL PERFORMANCE
For the year ended • 31 March 2020 For the year ended • 31 March 2020
4.2 Per programme Final Actual Variance Variance as Appropriation Expenditure a % of Final Appropriation R’000 R’000 R’000 % Administration 359 631 351 370 8 261 2
Public Works Infrastructure 2 755 442 2 722 784 32 658 1
Expanded Public Work Programme 309 913 268 819 41 094 13
4.3 Per economic classification Final Actual Variance Variance as Appropriation Expenditure a % of Final Appropriation R’000 R’000 R’000 %
Current payments 2 066 025 2 019 508 46 517 2
Compensation of employees 1 130 365 1 120 132 10 234 1
Goods and services 934 855 899 318 35 537 4
Interest and rent on land 805 58 747 93
Transfers and subsidies 1 091 329 1 090 440 889 0
Provinces and municipalities 1084 375 1 084 092 283 0
Departmental agencies and accounts - - - -
Households 6 954 6 348 606 9
Payments for capital assets 267 413 232 808 34 605 13
Buildings and other fixed structures 205 985 175 766 30 219 15
Machinery and equipment 31 392 27 225 4 167 13
Intangible assets 30 036 29 817 219 (100)
Payments for financial assets 219 218 1 (100)
A request for Roll-over of funds amounting to R21 million has been made to the Provincial Treasury to cater for unpaid invoices on projects that will be continuing in the 2020/21 financial year.
4.4 Per conditional grant Final Actual Variance Variance as Appropriation Expenditure a % of Final Appropriation R’000 R’000 R’000 R’000
EPWP Incentive grant 23 878 23 878 - -
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
140 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS STATEMENT OF FINANCIAL PERFORMANCE
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Note 2019/20 2018/19 R’000 R’000 REVENUE
Annual appropriation 1 3 424 986 3 036 964
Departmental revenue 2 19 327 18 430
TOTAL REVENUE 3 444 313 3 055 394
EXPENDITURE
Current expenditure
Compensation of employees 3 1 120 132 1 027 435
Goods and services 4 899 317 968 856
Interest and rent on land 5 58 943
Total current expenditure 2 019 507 1 997 234
Transfers and subsidies
Transfers and subsidies 7 1 090 440 905 313
Total transfers and subsidies 1 090 440 905 313
Expenditure for capital assets
Tangible assets 8 202 991 105 372
Intangible assets 29 817 8 660
Total expenditure for capital assets 232 808 114 032
Payments for financial assets 6 218 4 314
TOTAL EXPENDITURE 3 342 973 3 020 893
SURPLUS FOR THE YEAR 101 340 34 501
Reconciliation of Net Surplus for the year
Voted funds 82 013 16 071
Annual appropriation 82 013 16 071
Departmental revenue and PRF Receipts 12 19 327 18 430
SURPLUS FOR THE YEAR 101 340 34 501
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
141 STATEMENT OF FINANCIAL POSITION STATEMENT OF CHANGES IN NET ASSETS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Note 2019/20 2018/19 R’000 R’000 ASSETS
Current assets 135 011 261 430
Cash and cash equivalents 9 119 713 245 328
Receivables 10 15 298 16 102
TOTAL ASSETS 135 011 261 430
LIABILITIES
Current liabilities 134 441 260 842
Voted funds to be surrendered to the Revenue Fund 11 82 008 16 066
Departmental revenue and PRF Receipts to be surrendered to 12 18 264 19 449 the Revenue Fund
Payables 13 34 169 225 327
TOTAL LIABILITIES 134 441 260 842
NET ASSETS 570 588
Note 2019/20 2018/19
R’000 R’000
Represented by:
Recoverable revenue 570 588
TOTAL 570 588
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
142 STATEMENT OF FINANCIAL POSITION STATEMENT OF CHANGES IN NET ASSETS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Note 2019/20 2018/19
R’000 R’000
Recoverable revenue
Opening balance 588 1 070
Transfers: (18) (482)
Debts recovered (included in departmental receipts) (225) (647)
Debts raised 207 165
Closing balance 570 588
TOTAL 570 588
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
143 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
CASH FLOW STATEMENT NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Note 2019/20 2018/19
R’000 R’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts 3 444 313 3 054 003
Annual appropriated funds received 1.1 3 424 986 3 036 964
Departmental revenue received 2 19 278 16 977
Interest received 2.3 49 62
Net increase in working capital (190 354) 48 569
Surrendered to Revenue Fund (36 583) (18 927)
Current payments (2 019 449) (1 996 291)
Interest paid 5 (58) (943)
Payments for financial assets (218) (4 314)
Transfers and subsidies paid (1 090 440) (905 313)
Net cash flow available from operating activities 14 107 211 176 784
CASH FLOWS FROM INVESTING ACTIVITIES
Distribution received
Payments for capital assets 8 (232 808) (114 032)
Proceeds from sale of capital assets 2.4 - 1 391
Net cash flows from investing activities (232 808) (112 641)
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in net assets (18) (482)
Net cash flows from financing activities (18) (482)
Net decrease in cash and cash equivalents (125 615) 63 661
Cash and cash equivalents at beginning of period 245 328 181 667
Cash and cash equivalents at end of period 9 119 713 245 328
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
144 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
CASH FLOW STATEMENT NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Summary of significant accounting policies
The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. Management has concluded that the financial statements present fairly the department’s primary and secondary information. The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation. 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 (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act. 1 Basis of preparation The financial statements have been prepared in accordance with the Modified Cash Standard. 2 Going concern The financial statements have been prepared on a going concern basis. 3 Presentation currency Amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department. 4 Rounding Unless otherwise stated financial figures have been rounded to the nearest one thousand Rand (R’000). 5 Foreign currency translation Cash flows arising from foreign currency transactions are translated into South African Rands using the spot exchange rates prevailing at the date of payment / receipt. 6 Comparative information 6.1 Prior period comparative information 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. 6.2 Current year comparison with budget A comparison between the approved, final budget and actual amounts for each programme and economic classification is included in the appropriation statement. 7 Revenue 7.1 Appropriated funds Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation). Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the statement of financial performance on the date the adjustments become effective. The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognised as a payable / receivable in the statement of financial position. 7.2 Departmental revenue Departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the relevant revenue fund, unless stated otherwise. Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the statement of financial position. 7.3 Accrued departmental revenue Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the financial statements when: • it is probable that the economic benefits or service potential associated with the transaction will flow to the department; and • the amount of revenue can be measured reliably. The accrued revenue is measured at the fair value of the consideration receivable.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
145 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
8 Expenditure 8.1 Compensation of employees 8.1.1 Salaries and wages Salaries and wages are recognised in the statement of financial performance on the date of payment. 8.1.2 Social contributions Social contributions made by the department in respect of current employees are recognised in the statement of financial performance on the date of payment. Social contributions made by the department in respect of ex-employees are classified as transfers to households in the statement of financial performance on the date of payment. 8.2 Other expenditure Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of financial performance on the date of payment. The expense is classified as a capital expense if the total consideration paid is more than the capitalisation threshold. 8.3 Accruals and payables not recognised Accruals and payables not recognised are recorded in the notes to the financial statements at cost at the reporting date. 8.4 Leases 8.4.1 Operating leases Operating lease payments made during the reporting period are recognised as current expenditure in the statement of financial performance on the date of payment. The operating lease commitments are recorded in the notes to the financial statements. 8.4.2 Finance leases Finance lease payments made during the reporting period are recognised as capital expenditure in the statement of financial performance on the date of payment. The finance lease commitments are recorded in the notes to the financial statements and are not apportioned between the capital and interest portions. Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of: • cost, being the fair value of the asset; or • the sum of the minimum lease payments made, including any payments made to acquire ownership at the end of the lease term, excluding interest. 9 Aid Assistance 9.1 Aid assistance received Aid assistance received in cash is recognised in the statement of financial performance when received. In-kind aid assistance is recorded in the notes to the financial statements on the date of receipt and is measured at fair value. Aid assistance not spent for the intended purpose and any unutilised funds from aid assistance that are required to be refunded to the donor are recognised as a payable in the statement of financial position. 9.2 Aid assistance paid Aid assistance paid is recognised in the statement of financial performance on the date of payment. Aid assistance payments made prior to the receipt of funds are recognised as a receivable in the statement of financial position. 10 Cash and cash equivalents Cash and cash equivalents are stated at cost in the statement of financial position. Bank overdrafts are shown separately on the face of the statement of financial position as a current liability. 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.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
146 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
11 Prepayments and advances Prepayments and advances are recognised in the statement of financial position when the department receives or disburses the cash. Prepayments and advances are initially and subsequently measured at cost.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
147 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
16.4 Project Costs: Work-in-progress Expenditure of a capital nature is initially recognised in the statement of financial performance at cost when paid. Amounts paid towards capital projects are separated from the amounts recognised and accumulated in work-in-progress until the underlying asset is ready for use. Once ready for use, the total accumulated payments are recorded in an asset register. Subsequent payments to complete the project are added to the capital asset in the asset register. Where the department is not the custodian of the completed project asset, the asset is transferred to the custodian subsequent to completion. 17 Provisions and Contingents 17.1 Provisions Provisions are recorded in the notes to the financial statements 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 or service potential will be required to settle the obligation and a reliable estimate of the obligation can be made. The provision is measured as the best estimate of the funds required to settle the present obligation at the reporting date. 17.2 Contingent liabilities Contingent liabilities are recorded in the notes to the financial statements when there is a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department or when there is a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably. 17.3 Contingent assets Contingent assets are recorded in the notes to the financial statements when a possible asset arises from past events, and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department. 17.4 Capital commitments Capital commitments are recorded at cost in the notes to the financial statements. 18 Unauthorised expenditure Unauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either: • approved by Parliament or the Provincial Legislature with funding and the related funds are received; or • approved by Parliament or the Provincial Legislature without funding and is written off against the appropriation in the statement of financial performance; or • transferred to receivables for recovery. Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure. 19 Fruitless and wasteful expenditure Fruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred. Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or transferred to receivables or written off. Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be recoverable and are de- recognised when settled or subsequently written-off as irrecoverable. 20 Irregular expenditure Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the value of the irregular expenditure incurred unless it is impracticable to determine, in which case reasons therefor are provided in the note. Irregular expenditure is removed from the note when it is either condoned by the relevant authority, transferred to receivables for recovery, not condoned and removed or written-off. Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable. 21 Changes in accounting estimates and errors Changes in accounting estimates are applied prospectively in accordance with MCS requirements. Correction of errors is applied retrospectively in the period in which the error has occurred in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the error. In such cases the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
148 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
22 Events after the reporting date Events after the reporting date that are classified as adjusting events have been accounted for in the financial statements. The events after the reporting date that are classified as non-adjusting events after the reporting date have been disclosed in the notes to the financial statements. 23 Principal-Agent arrangements The department is party to a principal-agent arrangement for [include details here]. In terms of the arrangement the department is the [principal / agent] and is responsible for [include details here]. All related revenues, expenditures, assets and liabilities have been recognised or recorded in terms of the relevant policies listed herein. Additional disclosures have been provided in the notes to the financial statements where appropriate. 24 Departures from the MCS requirements Management has concluded that the financial statements present fairly the department’s primary and secondary information and the department complied with the Standard regulated within modified cash basis of accounting principles. 25 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. 26 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. 27 Related party transactions Related party transactions within the Minister/MEC’s portfolio are recorded in the notes to the financial statements when the transaction is not at arm’s length. Key management personnel are those persons having the authority and responsibility for planning, directing and contolling the activities of the department. The number of individuals and their full compensation is recorded in the notes to the financial statements. 28 Inventories At the date of acquisition, inventories are recognised at cost in the statement of financial performance. Where inventories are acquired as part of a non-exchange transaction, the inventories are measured at fair value as at the date of acquisition. Inventories are subsequently measured at the lower of cost and net realisable value or where intended for distribution (or consumed in the production of goods for distribution) at no or a nominal charge, the lower of cost and current replacement value. The cost of inventories is assigned by using the weighted average cost basis. 29 Public-Private Partnerships Public Private Partnerships are accounted for based on the nature and or the substance of the partnership. The transaction is accounted for in accordance with the relevant accounting policies. A summary of the significant terms of the PPP agreement, the parties to the agreement, and the date of commencement thereof together with the description and nature of the concession fees received, the unitary fees paid, rights and obligations of the department are recorded in the notes to the financial statements. 30 Employee benefits The value of each major class of employee benefit obligation (accruals, payables not recognised and provisions) is disclosed in the Employee benefits note. 31 Transfers of functions Transfers of functions are accounted for by the acquirer by recognising or recording assets acquired and liabilities assumed at their carrying amounts at the date of transfer. Transfers of functions are accounted for by the transferor by derecognising or removing assets and liabilities at their carrying amounts at the date of transfer.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
149 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
1 Annual Appropriation
1.1 Annual Appropriation Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds) and Provincial Departments:
2019/20 2018/19 Final Actual Funds Funds not Final Appropriation Funds not Appropriation Received requested/not Appropriation received requested /not received received R’000 R’000 R’000 R’000 R’000
Administration 338 631 338 631 - 326 559 326 559 -
Public Works 2 755 442 2 755 442 - 2 392 642 2 392 642 -
EPWP 330 913 330 913 - 317 763 317 763 -
Total 3 424 986 3 424 986 - 3 036 964 3 036 964 -
The Department was allocated with a budget of R3,424 billion for the year under review and all funds requested were received in full during the year.
1.2 Conditional grants
Note 2019/20 2018/19 R’000 R’000 EPWP Incentive Grant 30 23 878 17 780
Conditional grants is incentive grants given to EPWP beneficiaries. The grant had increased from R17,780 million to R23,878 million as a result of improved reporting models by EPWP unit as stated in the approved departmental policy and also in line with the increase in cost of living.
2 Departmental revenue
Note 2019/20 2018/19 R’000 R’000
Sales of goods and services other than capital assets 2.1 15 722 15 923
Fines, penalties and forfeits 2.2 1 -
Interest, dividends and rent on land 2.3 49 62
Sales of capital assets 2.4 - 1 391
Transactions in financial assets and liabilities 2.5 3 555 1 054
Total revenue collected 19 327 18 430
Less: Own revenue included in appropriation - -
Departmental revenue collected 19 327 18 430
The process of selling capital assets in the current year did not materialise because bids received from propective buyers were below the market value and the Department is currently seeking approval from Provincial Treasury befeore signing offer to sell with propective buyer. Increase in transactions for financial assets and liabilities is as a result of prior year debts that were only paid in the current financial year.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
150 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
2.1 Sales of goods and services other than capital assets
Note 2019/20 2018/19
2 R’000 R’000
Sales of goods and services produced by the department 14 683 15 923
Sales by market establishment 13 708 14 482
Administrative fees 218 746
Other sales 757 695
Sales of scrap, waste and other used current goods 1 039 -
Total 15 722 15 923
Decrease in sale by market establishment is as a result of expired commercial lease contracts that were not renewed by the tenant, some of residential properties were also sold in the prior year hence a decrease in property revenue. Decrease of 528 in relation to administrative fees is as a result of less tender documents that were advertise and sold in the current year.
2.2 Fines, penalties and forfeits
Note 2019/20 2018/19
2 R’000 R’000
Forfeits 1 -
Total 1 -
Revenue of R1 000.00 was received on Employee housing scheme.
2.3 Interest, dividends and rent on land
Note 2019/20 2018/19 2 R’000 R’000 Interest 49 62
Total 49 62
2.4 Sale of capital assets
Note 2019/20 2018/19 2 R’000 R’000 Tangible assets - 1 391
Land and subsoil assets 29 - 1 391
Intangible assets
Software 28 - -
Total - 1 391
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
151 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
There were no sales of capital assets in the financial year under review.
2.5 Transactions in financial assets and liabilities
Note 2019/20 2018/19 2 R’000 R’000
Receivables 3 555 1 054
Total 3 555 1 054
Revenue collected as result of debt recovery amounted to R3,5 million. The bulk of this collection related to previous financial year.
3. Compensation of employees
3.1 Salaries and Wages
Note 2019/20 2018/19
R’000 R’000
Basic salary 673 863 655 026
Performance award 14 669 14 266
Service Based 671 1 331
Compensative/circumstantial 159 534 102 220
Periodic payments 5 212 5 811
Other non-pensionable allowances 134 495 126 683
Total 988 444 905 337
Increase in basic salary and other non-pensioanable allowance are as a result of annual salary adjustment and pay progression. Included in compensative/circumstantial is overtime and stipends for EPWP beneficiaries.
3.2 Social contributions
Note 2019/20 2018/19
R’000 R’000
Employer contributions
Pension 85 261 82 676
Medical 46 174 39 185
Bargaining council 253 237
Total 131 688 122 098
Total compensation of employees 1 120 132 1 027 435
Average number of employees 2 545 2 677
The average number of employees reduced from 2 677 to 2 545 because of natural attrition (resignations, early retirement, death, transfers and dismissal). Most of these posts were not filled as a result of cost containment.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
152 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
4. Goods and services
Note 2019/20 2018/19 R’000 R’000 Administrative fees 96 131
Advertising 773 1 903
Minor assets 4.1 173 185
Bursaries (employees) 3 089 2 250
Catering 517 378
Communication 7 320 15 001
Computer services 4.2 17 979 6 715
Consultants: Business and advisory services 4 147 3 213
Legal services 49 404 40 668
Contractors 602 2
Agency and support / outsourced services 118 850 183 626
Audit cost – external 4.3 9 332 9 123
Fleet services 40 218 30 041
Inventory 4.4 1 386 6 740
Consumables 4.5 6 198 9 240
Operating leases 393 542 384 752
Property payments 4.6 224 335 251 119
Transport provided as part of the departmental activities 1 725 73
Travel and subsistence 4.7 14 958 14 183
Venues and facilities 1 548 1 143
Training and development 2 936 7 784
Other operating expenditure 4.8 189 586
Total 899 317 968 856
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
153 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Goods and services reflects a reduction of 8% performance for the year 2019/20. Despite the cost containment measures implemented – items such as computer services, legal services and fleet services showed increase in expenditure when compared to the year 2018/19. • Reduction in billing for landline as a result of cost containment and more people working remotely resulted in a decrease in the expenditure for communication. • Prior year long outstanding fees for Microsoft licences were only settled in the current year (2019/20) • Increase in legal cost is as a result of legal claims on gas and other precinct litigations that were settled out of court for which they required immediate payment. • Agency and support item reflects a reduced balance close to R70 million of expenditure due to the reduced number of EPWP beneficiaries( Zivuseni). • Fleet services increased in the 2019/20 financial year by R10 million as a result of inflationary adjustment and payment of prior year invoices at the beginning of the financial year. • Annual rental escalation resulted in increase in the operating lease expenditure • Both cleaning services and security services show reduction on property payment as a result of cost containment. • On Training and Development – the Department planned to conduct training during the third and fourth quarter of the financial year. The required training programmes were delayed and would not have resulted in most invoices accruing into 2020/21 financial year. The Department then took a decision to postpone training to 2020/21.
4.1 Minor assets
Note 2019/20 2018/19
4 R’000 R’000
Tangible assets 173 185
Machinery and equipment 173 185
Total 173 185
4.2 Computer services
Note 2019/20 2018/19 4 R’000 R’000 External computer service providers 17 979 6 715
Total 17 979 6 715
Prior year long outstanding fees for Microsoft licences were only settled in the current year (2019/20)
4.3 Audit cost – External
Note 2019/20 2018/19 4 R’000 R’000 Regularity audits 8 445 7 104
Investigations 887 2 019
Total 9 332 9 123
The year 2020/21 had a reduced number of cases that required external specialised investigation. Inflationary adjustment resulted in regularity audits increasing from 7 104 to 8 445.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
154 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
4.4 Inventory
Note 2019/20 2018/19 4 R’000 R’000 Clothing material and accessories 1 355 6 599
Materials and supplies 23 141
Food and food supplies 8 -
Total 1 386 6 740
Part of the Departmental policy is to buy or replace protective clothing after a certain period of time. This year less protective clothing was required compared to last year.
4.5 Consumable
Note 2019/20 2018/19
4 R’000 R’000
Consumable supplies 3 895 6 659
Uniform and clothing 1 011 4 149
Household supplies 1 457 882
Building material and supplies 255 339
Communication accessories 7 -
IT consumables 572 857
Other consumables 593 432
Stationery, printing and office supplies 2 303 2 581
Total 6 198 9 240
Procurement of uniform consumable includes amongst other things disposable safety attire used by artisans. Most of these items were only bought in 2018/19 due to less demand on uniform and clothing in the current year
4.6 Property payments
Note 2019/20 2018/19 4 R’000 R’000 Municipal services 27 099 30 934
Property maintenance and repairs 88 868 93 076
Other 108 368 127 109
Total 224 335 251 119
Other property payments include payment of cleaning and security services.Both services were reduced as part of cost cointainment. The reduction in expenditure reported under “property maintenance and repairs” item relates to budget reprioritization on OHS instead of maintenance of State-owned buildings.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
155 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
4.7 Travel and subsistence
Note 2019/20 2018/19 4 R’000 R’000 Local 14 944 14 112
Foreign 14 71
Total 14 958 14 183
Travel and subsistence related to official abroad trip that was approved by the Premier for the former MEC. The continuation of approving officials to use private vehicles for official purposes resulted in the increase in expenditure form 14 112 to 14 944
4.8 Other operating expenditure
Note 2019/20 2018/19 4 R’000 R’000 Other 189 586
Total 189 586
The Department embarked on cost cointainment measures that resulted in cost for courier and postal services reduced drastically in the year 2019/20. 5. Interest and rent on land
Note 2019/20 2018/19 R’000 R’000 Interest paid 58 943
Total 58 943
As a result of introduction of e-invoicing in the current year the Department managed to pay more invoices within 30 days and less interest was paid on long outstanding invoices for telephone and municipal services.
6. Payments for financial assets
Note 2019/20 2018/19 R’000 R’000 Other material losses written off 6.1 - 2 945
Debts written off 6.2 218 1 369
Total 218 4 314
Other material losses: During the current financial year the Departmemt did not write off any debts that relates to the client Departments.
6.1 Other material losses written off
Note 2019/20 2018/19 6 R’000 R’000 Nature of losses
Supplier Debts - 2 945
Total - 2 945
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
156 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
6.2 Debts written off
Note 2019/20 2018/19 6 R’000 R’000 Nature of debts written off
Irrecoverable and uncontactable debt 22 -
Ex-Employees 142 1 162
Capital paid interest 2 -
Deceased 28 194
Interest 23 13
Workshop equipment loss 1 -
Total 218 1 369
Total debt written off 218 1 369
Only few ex-employees during the current year had debts that were outstanding for a period longer than 3 years and as a result these was written off as presecribed debts. 7. Transfers and subsidies
2019/20 2018/19 R’000 R’000 Note
Provinces and municipalities Annexure 1A 1 084 092 901 401
Households Annexure 1G 6 348 3 912
Total 1 090 440 905 313
The increase on property rates and taxes is as a result of new valuation roll as provided by the municipalities.The balance is also inclusive of Arrear payments which were made in the first Quarter of the financial year under review.
8. Expenditure for capital assets
Note 2019/20 2018/19 R’000 R’000 Tangible assets 202 991 105 372
Buildings and other fixed structures 27 175 766 76 228
Machinery and equipment 25 27 225 29 144
Intangible assets 29 817 8 660
Software 26 29 817 8 660
Total 232 808 114 032
Included in the buildings and other fixed structure is cost incurred on demolishing bank of Lisbon and Old Natal Spruit Hospital during the year 2019/20. Procurement of biometrics system for EPWP beneficiaries resulted in increase of R21 157 on software.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
157 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
8.1 Analysis of funds utilised to acquire capital assets – 2019/20
Voted funds Aid assistance Total R’000 R’000 R’000 Tangible assets 202 991 - 202 991
Buildings and other fixed structures 175 766 - 175 766
Machinery and equipment 27 225 - 27 225
Intangible assets 29 817 29 817
Software 29 817 - 29 817
Total 232 808 - 232 808
8.2 Analysis of funds utilised to acquire capital assets – 2018/19
Voted funds Aid assistance Total
R’000 R’000 R’000
Tangible assets 105 372 105 372
Buildings and other fixed structures 76 228 - 76 228
Machinery and equipment 29 144 - 29 144
Intangible assets 8 660 - 8 660
Software 8 660 - 8 660
Total 114 032 - 114 032 9. Cash and cash equivalents
Note 2019/20 2018/19 R’000 R’000 Consolidated Paymaster General Account 119 686 245 285
Cash on hand 27 43
Total 119 713 245 328
Included in the Department PMG account of R119 million is an amount of R29 million relating to unpaid invoices for client Departments. Guarantees received from suppliers amounting to R2 million and payment to 3rd parties amounting to R2.5 million. Revenue unpaid to the Provincial Treasury at year end amounted to R4 million. The Department also had unspent funds amounting to R82 million which was due to be surrendered to the Provincial Treasury.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
158 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
10. Receivables
2019/20 2018/19
Note Current Non-current Total Current Non-current Total
R’000 R’000 R’000 R’000 R’000 R’000
Claims 10.1 3 433 - 3 433 1 754 - 1 754 recoverable
Recoverable 10. 2 422 - 422 409 - 409 expenditure
Staff debt 10.3 1 622 - 1 622 1 315 - 1 315
Other 10.4 9 821 - 9 821 12 624 - 12 624 receivables
Total 15 298 - 15 298 16 102 - 16 102
10.1 Claims recoverable
Note 2019/20 2018/19 10 and Annex 4 R’000 R’000 Provincial departments 3 433 1 754
National Departments - -
Total 3 433 1 754
Included in the balance of R3,4million reported in the 2019/20 financial year are claims made against Provincial Department of Road and Trasnsport (R1 871), Gauteng Department of Community Safety ( R279), e-Gov (R1 282) and SANDF (R13).
10.2 Recoverable expenditure (disallowance accounts)
Note 2019/20 2018/19 10 R’000 R’000 Pension Recoverable 12 12
Sal: Reversal Control 397 352
Sal: Tax Debt: CA - 1
Sal: Deduction Disallow 12 31
Disallowance Miscellaneous - 13
Telephone Erroneous 1
Total 422 409
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
159 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
10.3 Staff debt
Note 2019/20 2018/19 10 R’000 R’000 Employees 126 117
EX-Employees 1 115 737
Breach of Contract Ex-employees 381 461
Total 1 622 1 315
Staff debts increased in the 2019/20 financial year as a result of more employees who exited the system during the year before repaying the outstanding balance.
10.4 Other receivables
Note 2019/20 2018/19 10 R’000 R’000 9 821 12 624
Claims against various suppliers pending outcome of investigation
Total 9 821 12 624
Reduction in other receivables related to payments received from security, cleaning service and telecommunication. The Department is in the process of recovering the remaining balance.
10.5 Impairment of receivables
Note 2019/20 2018/19 R’000 R’000 Estimate of impairment of receivables 10 652 10 449
Total 10 652 10 449
Included in the impairment of receivables is outstanding payment for Suikerbosrand projects. The impact of Covid-19 has since changed the financial position of most our debtors hence an increase in impairment figure.
11. Voted funds to be surrendered to the Revenue Fund
Note 2019/20 2018/19 R’000 R’000 Opening balance 16 066 219
Prior period error - -
As restated 16 066 219
Transfer from statement of financial performance (as restated) 82 013 16 071
Paid during the year (16 071) (224)
Closing balance 82 008 16 066
The Department had an overall underspending of R82 million which will be surrendered in the year 2020/21. The Provincial Treasury has approved roll-over R21million to 2020/21 financial year. Underspending also related to delays in training of EPWP beneficiaries.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
160 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
12. Departmental revenue and PRF Receipts to be surrendered to the Revenue Fund
Note 2019/20 2018/19 R’000 R’000 Opening balance 19 449 19 722
Prior period error - -
As restated 19 449 19 722
Transfer from Statement of Financial Performance (as restated) 19 327 18 430
Paid during the year (20 512) (18 703)
Closing balance 18 264 19 449
Revenue paid over to Provincial Treasury amounted to R20,512 million in 2019/20. The revenue collected in the last month of the financial year will be paid over in the first quarter of the 2020/21 financial year to Provincial Treasury.
13. Payables – current
Note 2019/20 2018/19 R’000 R’000 Amounts owing to other entities - -
Advances received 13.1 2 479 2 838
Other payables 13.2 31 690 222 489
Total 34 169 225 327
In the prior year client Departments transferred R222 million that could not be full expensed whereas the year 2019/20 had only R31 million reported as payable to the contractors. R31 million speaks to project expenses payable to contractors as construction and maintenance of buildings continues in the following financial year.
13.1 Advances received
Note 2019/20 2018/19 13 R’000 R’000 Other institutions 2 479 2 838
Total 2 479 2 838
The amount of R2,479 million above speaks to guarantees received from contractors in terms of projects awarded by the Department.
13.2 Other payables
Note 2019/20 2018/19 13 R’000 R’000 Description
Outstanding payments 1 820 7
Sal: Pension Fund - 13
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
161 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Note 2019/20 2018/19 13 R’000 R’000
Amounts owed to other entities(Service Providers) 29 110 219 752
Sal: ACB Recalls 6 43
Sal: Income Tax 52 597
Telephone Control Acc 103 1 202
Bank Adjustment - 161
Adv:Dom:P/Dept:Gp Adv Acc: CA 6 711
Other 593 3
Total 31 690 222 489
The balance of R29 million disclosed above emanates from payment received from client Departments and could not be paid out by end of March. These payments will be made to the contractors in the first quarter of the year 2020/21.
14. Net cash flow available from operating activities
Note 2019/20 2018/19 R’000 R’000 Net surplus as per Statement of Financial Performance 101 340 34 501
Add back non cash/cash movements not deemed operating activities 5 871 142 283
(Increase)/Decrease in receivables 804 (515)
(Increase)/Decrease in other current assets (191 158) 49 084
Proceeds from sale of capital assets - (1 391)
Expenditure on capital assets 232 808 114 032
Surrenders to Revenue Fund (36 583) (18 927)
Net cash flow generated by operating activities 107 211 176 784
The increase and decrease in the working capital speaks to cash inflows and outflows. The two financial years indicate that at some point the Department paid for resources they had already received and in another year there were no cash outflows because the resources were not received as yet. Reason for disclosing both increase and decrease is because the two financial years are reporting two different incidences.
15. Reconciliation of cash and cash equivalents for cash flow purposes
Note 2019/20 2018/19 R’000 R’000 Consolidated Paymaster General account 119 686 245 285
Cash on hand 27 43
Total 119 713 245 328
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
162 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
16. Contingent liabilities and contingent assets
16.1 Contingent liabilities
Note 2019/20 2018/19
R’000 R’000
Liable to Nature
Housing loan guarantees Employees Annex 3A 56 56
Claims against the department Annex 3B 286 295 233 389
Inter-departmental Unconfirmed Balances 32 0
Total 286 383 233 445
Increased in the balance for contigent liabilities is as a result of claims made against the state for breach of contract that related to projects. Bulk of the claims related to construction work performed at Department of Education and Health facilities.
16.2 Contingent assets
Note 2019/20 2018/19
R’000 R’000
Nature of contingent asset
Litigations(TTR Building Construction) 1 617 1 617
Total 1617 1 617
17. Capital commitments
Note 2019/20 2018/19 R’000 R’000 Building & other fixed structures 123 946 60 571
Total 123 946 60 571
Capital commitments increased from R60 milion to R123 million. This speaks to tenders awarded for Precinct projects in relation to OHS for which work will continue in the current financial year. During the year 2019/20 there was a change in accounting standards which resulted in the figure for 2018/19 revised from R141 million to R60 million.
18. Accruals and payables not recognised
18.1 Accruals
2019/20 2018/19 R’000 R’000 Listed by economic classification 30 Days 30+ Days Total Total
Goods and services 1 206 2 363 3 569 26 655
Capital assets – 3 445 3 445 456
Total 1 206 5 808 7 014 27 111
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
163 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Note 2019/20 2018/19 R’000 R’000 Listed by programme level
Administration 2 984 2 893
Public works 4 030 4 436
EPWP - 19 782
Total 7 014 27 111
18.2 Payables not recognised
2019/20 2018/19 R’000 R’000
Listed by economic classification
30 Days 30+ Days Total Total
Goods and services 29 953 6 514 36 467 71 003
Transfers and subsidies - 90 118 90 118 382 142
Capital assets 15 694 - 15 694 39 983
Total 45 647 96 632 142 279 493 128
Note 2019/20 2018/19 R’000 R’000 Listed by programme level
Administration 11 941 33 529
Public Works 130 048 440 643
EPWP 290 18 956
Total 142 279 493 128
Note 2019/20 2018/19 R’000 R’000 Included in the above totals are the following:
Confirmed balances with other departments Annex 5 68 16 705
Confirmed balances with other government entities Annex 5 7 417 14 891
Total 7 485 31 596
The above sub-note reflects a massive decrease in expenditure on goods and serices from R71million to R33 million. This emanates from the effective cost containment measure implemented by the Department during the year. The balance of tranfers and subsidies has however decreased thereby indicating that most of invoices that related to the prior and current year were paid.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
164 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
19. Employee benefits
Note 2019/20 2018/19 R’000 R’000 Leave entitlement 46 663 54 149
Service bonus 26 909 25 976
Performance awards 8 166 15 378
Capped leave 17 788 19 016
Other 1 035 1 193
Total 100 561 115 712
Decrease in performance award is as a result of change in the rate from 1.5% to 0.75% of the compensation budget.
20. Lease commitments
20.1 Operating leases
Specialised Land Buildings and Machinery and Total military other fixed equipment 2019/20 equipment structures R’000 R’000 R’000 R’000 R’000
Not later than 1 year - - 275 039 17 666 292 705
Later than 1 year and not - - 459 057 15 917 474 974
later than 5 years - - 24 319 - 24 319
Total lease commitments 758 415 33 583 791 998
Specialised Land Buildings and Machinery and Total military other fixed equipment 2018/19 equipment structures R’000 R’000 R’000 R’000 R’000
Not later than 1 year - - 314 742 8 328 323 070
Later than 1 year and not later than 5 - - 445 507 3 232 448 739 years
Later than five years - - 15 172 - 15 172
Total lease commitments 775 421 11 560 786 981
The Department has renewed two of its old contracts during the year 2020/21. The Department is mandated to make provision for office accommodation and parking to all GPG Departments. The above balance reported is also inclusive of leased photocopy machines leased by the Department. The two contracts will impact the reporting on the lease commitment as indicated above.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
165 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
20.2 Finance leases **
2019/20 Specialised Land Buildings and Machinery Total military other fixed and equipment structures equipment R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - - 5 246 5 246
Later than 1 year and not later than 5 years - - - - -
Later than five years - - - - -
Total lease commitments - - - 5 246 5 246
2018/19 Specialised Land Buildings and Machinery Total military other fixed and equipment structures equipment R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - - 15 098 15 098
Later than 1 year and not later than 5 years - - - 6 159 6 159
Later than five years - - - - -
Total lease commitments 21 257 21 257
The Mandatory contract on Vodacom cellphone and fleet services has resulted in the reduction in the reportable balance for Finance leases. The contract is due to end in 2020/21 financial year.
20.3 Operating lease future revenue**
2019/20 Specialised Land Buildings and Machinery Total military other fixed and equipment structures equipment R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - 5 825 - 5 825
Later than 1 year and not later than 5 years - - 5 851 - 5 851
Later than five years - - 16 031 - 16 031
Total operating lease revenue receivable - - 27 707 - 27 707
2018/19 Specialised Land Buildings and Machinery Total military other fixed and equipment structures equipment R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - 6 928 - 6 928
Later than 1 year and not later than 5 years - - 8 308 - 8 308
Later than five years - - 16 677 - 16 677
Total operating lease revenue receivable - - 31 913 - 31 913
Future Revenue for the Department has reduced mainly as a result of possible sales of non – core properties planned over the 2019/20 MTEF period.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
166 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
21. Accrued departmental revenue
Note 2019/20 2018/19 R’000 R’000 Sales of goods and services other than capital assets 62 254 49 589
Total 62 254 49 589
Included in the R62,5 million is state owned properties ( Commercial and residential) leased out to tenants. Possible revenue in this regard is estimated to increase to R62,5 million as disclosed above.
21.1 Analysis of accrued departmental revenue
Note 2019/20 2018/19 R’000 R’000
Opening balance 49 589 39 386
Less: amounts received (9 755) (9 049)
Add: amounts recorded 22 420 19 252
Closing balance 62 254 49 589
Payment received in relation to both residential and commercial properties were not accounted for in the prior balance hence the opening balance was restated to R49,5 million.
21.2 Impairment of accrued Departmental Revenue
Note 2019/20 2018/19 R’000 R’000 Estimate of impairment of accrued Departmental
Revenue 50 595 39 479
Total 50 595 39 479
The impairment of accrued Departmental revenue emanates from the current debt register relating to properties leased out. Increase in the impairment balance is as a result of increase in the debts register for leased state owned properties. The impact of Covid-19 has since changed the financial position of most of the tenants hence an increase in impairment figures. Most of tenants have asked for payment holiday of which the Department is seeking approval from Provincial Treasur
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
167 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
22. Irregular expenditure
22.1 Reconciliation of irregular expenditure
Note 2019/20 2018/19 R’000 R’000 Opening balance 451 559 302 493
Prior period error - -
As restated 451 559 302 493
Add: Irregular expenditure – relating to prior year 461 -
Add: Irregular expenditure – relating to current year 107 550 258 271
Less: Prior year amounts condoned - (874)
Less: Current year amounts condoned - (108 331)
Closing balance 559 570 451 559
Note 2019/20 2018/19 R’000 R’000 Analysis of awaiting condonation per age classification
Current year 107 550 149 940
Prior years 452 020 301 619
Total 559 570 451 559
The current balance relates to month to month security contracts and transport procurement.The opening balance amounting to R451 million includes transactions which have been investigated.
22.2 Details of current and prior year irregular expenditure – added current year (under determination and investigation)
Incident Disciplinary steps taken/criminal proceedings 2019/20 R’000 Month to Month Investigation concluded 95 503
SCM process not followed Investigation concluded 1 486
Over expenditure on projects Investigations in progress 10 561
Over expenditure on projects (prior year) Investigations in progress 461
Total 108 011
The R95 million balance as indicated above related to month to month security services contracts in the main.R1 million was incurred on services received without following SCM processes.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
168 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
23. Fruitless and wasteful expenditure
23.1 Reconciliation of fruitless and wasteful expenditure
Note 2019/20 2018/19 R’000 R’000 Opening balance 885 68
Prior period error - -
As restated 885 68
Fruitless and wasteful expenditure – relating to prior year - -
Fruitless and wasteful expenditure – relating to current year 58 13 097
Less: Amounts recoverable 15.6 - -
Less: Amounts written off (943) (12 280)
Closing balance - 885
23.2 Details of current and prior year fruitless and wasteful expenditure – added current year (under determination and investigation)
Incident Disciplinary steps taken/criminal proceedings 2019/20 R’000 Interest Charged municipal charges Investigation Concluded 23
Interest charged telephone Investigation Concluded 35
Total 58
The balance of R58 thousand related to interest charged on late payments of municipal and telephone accounts.
23.3 Details of fruitless and wasteful expenditure written off
Incident 2019/20 R’000 Interest Charged municipal charges 23
Interest charged telephone 35
Property rates and taxes 817
Cancelled tender adverts 68
Total 943
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
169 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
24. Key management personnel
No. of 2019/20 2018/19 Individuals R’000 R’000 Political office bearers (provide detail below) 2 1 944 1 978
Officials:
Level 15 to 16 7 9 283 8 538
Level 14 (incl.CFO if at lower level) 20 20 964 21 615
Level 13 1 1 159 1 051
Family members of key management personnel – –
Total 33 350 33 182
The modified cash basis of accounting standards required the Department to include Chief Risk Officer as part of Key management personnel. The above correction is intended to include CRO as part of Key management personnel as stated in the approved SMT-charter of the Department. The DDG for Corporate Services Branch has been seconded to Tshwane Municipality during the fourth quarter of the financial year under review. The post is currently occupied by the Chief Director Human Resource Management until such tie that the DDG can resume duty in the Department.
Note 2019/20 2018/19 R’000 R’000 Provisions
Capital Projects 14 973 -
Total 14 973 -
Reconciliation of movement in provisions – 2019/20 Provision 1 Total provisions
Opening Balance 14 973 14 973
26. Non adjusting events after reporting date
2019/20 R’000 Nature of event
Transfer of immovable assets 2,664,997
Total 2,664,997
Department of Health transferred immovable assets to the Department at year end. The transfer process was only completed after year end. A number of schools facilities were burned down in the province during the COVID-19 lock down alert level 5. Department of Education is responsible to identify the nature and extent of the damage caused. The estimate of the financial loss has not yet been made available by Department of Education. After declaration of national state of disaster most departments were forced to operate with one third of staff complements, as a result service delivery might have been affected by the lockdown regulations, however since GDID was also responsible for converting some of the hospital wards to be Covid-19 compliant. This meant that the department did not completely stop providing services to client departments.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
170 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
27. Movable Tangible Capital Assets
MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Opening Value Additions Disposals Closing Balance balance adjustments R’000 R’000 R’000 R’000 R’000 MACHINERY AND 90 586 45 7 217 (321) 97 527 EQUIPMENT
Transport assets 1 155 - 900 - 2 055
Computer equipment 43 048 8 2 989 (139) 45 906
Furniture and office equipment 27 578 12 341 (107) 27 824
Other machinery and 18 805 25 2 987 (75) 21 742 equipment
TOTAL MOVABLE TANGIBLE 90 586 45 7 217 (321) 97 527 CAPITAL ASSETS
Value adjustments of R 45,000 comprise of assets that were identified on the floor during physical verification process and were subsequently fair valued based market costs.
Movable Tangible Capital Assets under investigation Number Value R’000 Included in the above total of the movable tangible capital assets per the asset register are assets that are under investigation:
Heritage assets
Machinery and equipment 4 879 86 729
Specialised military assets
Biological assets
Department could not complete current year’s physical verification of assets on the account of Covid 19 Lockdown. Thus, total number of 4,879 assets amounting to R 86,729,000 could not be physically verified.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
171 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
27.1 Additions
ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Cash* Non-cash** (Capital Work Received Total in Progress current, not current paid (Paid costs and current year, finance lease received prior payments) year) R’000 R’000 R’000 R’000 R’000 MACHINERY AND 27 225 900 (20 185) (723) 7 217 EQUIPMENT
Transport assets - 900 - - 900
Computer equipment 3 296 - - (307) 2 989
Furniture and office equipment 334 - - 7 341
Other machinery and 23 595 - (20 185) (423) 2 987 equipment
SPECIALISED MILITARY ASSETS - - - - -
TOTAL ADDITIONS TO 27 225 900 (20 185) (723) 7 217 MOVABLE TANGIBLE CAPITAL ASSETS
Department acquired assets amounting to R7,217,000 which comprise of desktops and laptops, furniture for the Office of the MEC and power tools for the Maintenance Hubs. The Department of Health transferred a BMW X5 that was utilized by former MEC Mahlangu at a historical cost of R900,000 to the Department of Infrastructure Development in accordance with the provisions of Section 42 of PFMA,1999.
27.2 Disposals
DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Sold for cash Non-cash Total disposals Cash Received disposal Actual R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 321 321
Computer Equipment - 139 139 -
Furniture and office equipment - 107 107 -
Other machinery and equipment - 75 75 -
TOTAL DISPOSAL OF MOVABLE - 321 321 - TANGIBLE CAPITAL ASSETS
Department disposed of stolen Laptops and a Garmin GPS drive amounting to R 37,528 and Ipads and Iphones amounting to R 178,140 that were erroneously capitalized as assets. The Department of Infrastructure Development transferred out office furniture at a cost of R 107,000 to Office of the Premier in accordance with the provisions of Section 42 of PFMA, 1999. The furniture was procured as part of the refurbishment project that was undertaken at 30 Simmonds Street after a fire hazard.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
172 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
27.3 Movement for 2018/19
MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 20YY Opening Prior period Additions Disposals Closing balance error Balance R’000 R’000 R’000 R’000 R’000 HERITAGE ASSETS
Heritage assets - - - - -
MACHINERY AND EQUIPMENT 84 738 837 5 011 - 90 586
Transport assets 1 155 - - - 1 155
Computer equipment 38 147 307 4 594 - 43 048
Furniture and office equipment 27 445 107 26 - 27 578
Other machinery and equipment 17 991 423 391 - 18 805
SPECIALISED MILITARY ASSETS
Specialised military assets
BIOLOGICAL ASSETS
Biological assets
TOTAL MOVABLE TANGIBLE 84 738 837 5 011 - 90 586 CAPITAL ASSETS
27.3.1 Prior period error
Note 2018/19 R’000 Nature of prior period error
Relating to 2018/19 affecting the opening balance 837
Prior year additions that were only accounted for in the current financial 307 year
Office furniture expenditure that was erroneously classified as part of 107 immovable
Prior year addtions that were only accounted for in the current financial 423 year
Total prior period errors 837
Department accounted for prior period error which comprised of computer equipment at a cost of R307,000; other machinery and equipment at a cost of R423,000 which were not capitalized in the previous financial year and office furniture at a cost of R107,000 that was erroneously capitalized under Immovable Assets disclosure note.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
173 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
27.4 Minor assets
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2020 Specialised Intangible Heritage Machinery Biological Total military assets assets assets and assets equipment R’000 R’000 R’000 R’000 R’000 R’000
Opening balance - 20 - 30 301 - 30 321
Value adjustments - - - 253 253
Additions - - - 223 - 223
Disposals - - - 348 - 348
TOTAL MINOR - 20 - 30 429 - 30 449 ASSETS
Department acquired assets amounting to R223,000 which comprised of tools for Maintenance Hubs, kitchen appliances and furniture for the Office of the MEC.Department also accounted for value adjustments of R253,000 comprise of assets that were identified on the floor during physical verification process and were subsequently fair valued using market related costs.Department also transferred out Office Furniture at a cost of R 348,000 to Office of the Premier in accordance with the provisions of Section 42 of PFMA, 1999.
Minor Capital Assets under investigation Number Value R’000 Included in the above total of the minor capital assets per the asset register are assets that are under investigation:
Machinery and equipment 15 339 21 125
Department could not complete current year’s physical verification of assets on the account of Covid 19 Lockdown. Thus, total number of 15,339 assets amounting to R 21,125,000 could not be physically verified.
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2019 Specialised Intangible Heritage Machinery Biological Total military assets assets assets and assets equipment R’000 R’000 R’000 R’000 R’000 R’000
Opening balance - 20 - 29 346 - 29 366
Prior period error - - - 346 - 346
Additions - - - 609 - 609
Disposals
TOTAL MINOR - 20 30 301 - 30 321 ASSETS
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
174 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Specialised Intangible Heritage Machinery Biological Total military assets assets assets and assets equipment Number of R1 minor - - - – - - assets
Number of minor – - - - - - assets at cost
TOTAL NUMBER OF ------MINOR ASSETS
27.4.1 Prior period error
Note 2018/19 R’000 Nature of prior period error
Relating to 2018/19 [affecting the opening balance] 346
Office Furniture expenditure that was erroneously classified as part of 346 immovable
-
Total prior period errors 346
Department accounted for prior period error of R346,000 which comprises of Office Furniture that was erroneously classified as part of Immovable Assets in the previous financial year.
28. Intangible Capital Assets
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Opening Value Additions Disposals Closing Balance balance adjustments R’000 R’000 R’000 R’000 R’000 SOFTWARE 5 783 - 10 - 5 793
TOTAL INTANGIBLE 5 783 - 10 - 5 793 CAPITAL ASSETS
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
175 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
28.1 Additions
ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Cash Non-Cash (Develop- Received current Total ment work year, not paid in progress – current costs) (Paid current year, received prior year) R’000 R’000 R’000 R’000 R’000 SOFTWARE 29 817 - (29 782) (25) 10
TOTAL ADDITIONS TO 29 817 - (29 782) (25) 10 INTANGIBLE CAPITAL ASSETS
Department acquired a software at a cost of R10,000 in the current financial year
28.3 Movement for 2018/19
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019 Opening Prior period Additions Disposals Closing Balance balance error R’000 R’000 R’000 R’000 R’000 SOFTWARE 5 758 25 - - 5 783
TOTAL INTANGIBLE 5 758 25 - - 5 783 CAPITAL ASSETS
28.4 Prior period error
Note 2018/19 R’000 Nature of prior period error
Relating to 2018/19 [affecting the opening balance] 25
Prior year addition that was only accounted for in the current financial 25 year
Total prior period errors 25
Department accounted for prior period error of R25,000 which comprises of a software addition that was not capitalized in the previous financial year.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
176 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
29. Immovable Tangible Capital Assets
MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Opening Value Additions Disposals Closing balance adjustments Balance R’000 R’000 R’000 R’000 BUILDINGS AND OTHER FIXED 30 197 453 2 178 038 (6 846) 32 368 645 STRUCTURES
Dwellings 558 784 - - - 558 784
Non-residential buildings 28 482 914 - 2 178 038 (6 846) 30 654 106
Other fixed structures 1 155 755 - - - 1 155 755
HERITAGE ASSETS
Heritage assets - - - - -
LAND AND SUBSOIL ASSETS 1 494 661 - 25 800 - 1 520 461
Land 1 494 661 - 25 800 - 1 520 532
Mineral and similar non-regenerative - - - - - resources
TOTAL IMMOVABLE TANGIBLE 31 692 114 - 2 203 838 (6 846) 33 889 106 CAPITAL ASSETS
Immovable tangible assets under investigation Number Value R’000 Buildings and other fixed structures 11 14 578
Land and subsoil assets 2 2 420
The process and reason for disposal of the above properties is still under being investigated by the Department.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
177 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
29.1 Additions
ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Cash Non-cash (Capital Work in Received current, Total Progress current not paid (Paid costs and finance current year, lease payments) received prior year) R’000 R’000 R’000 R’000 R’000 BUILDING AND OTHER 39 067 2 178 038 (39 067) - 2 178 038 FIXED STRUCTURES
Dwellings - - - - -
Non-residential buildings 39 067 2 178 038 (39 067) - 2 178 038
Other fixed structures - - - - -
LAND AND SUBSOIL - 25 800 - 25 800 ASSETS
Land - 25 800 - - 25 800
Mineral and similar non------regenerative resources
TOTAL ADDITIONS TO 39 067 2 203 838 (39 067) - 2 203 838 IMMOVABLE TANGIBLE CAPITAL ASSETS
29.2 Disposals
Sold for Cash Non Cash Disposal Total Disposal Cash Received R’000 R’000 R’000 R’000
Buildings and Other fixed structures (6 846) (6 846)
Total Disposal of immovable Tangible (6 846) (6 846) Capital Assets
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
178 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
29.3 Movement for 2018/19
MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019 Opening Prior period Additions Disposals Closing balance error Balance R’000 R’000 R’000 R’000 R’000 BUILDINGS AND OTHER FIXED 28 068 983 297 211 1 889 324 (58 065) 30 197 453 STRUCTURES
Dwellings 540 442 18 342 - - 558 784
Non-residential buildings 26 442 901 217 031 1 881 047 (58 065) 28 482 914
Other fixed structures 1 085 640 61 838 8 277 - 1 155 755
HERITAGE ASSETS
Heritage assets - - - - -
LAND AND SUBSOIL ASSETS 1 450 770 24 529 19 362 - 1 494 661
Land 1 450 770 24 529 19 362 - 1 494 661
Mineral and similar non-regenerative resources
TOTAL IMMOVABLE TANGIBLE 29 519 753 321 740 1 908 686 (58 065) 31 692 114 CAPITAL ASSETS
29.3.1 Prior period error
Note 2018/19 R’000 Nature of prior period error
Relating to 2018/19[affecting the opening balance] 321 740
Building and other fix structures 297 211
Land and subsoil 24 529
Relating to 2018/19
Total prior period errors 321 740
Vested properties to the Department were identified through the Department of Rural Development and Land Reform (DRDLR) during the year, and are accordingly brought in as prior year additions.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
179 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
29.4 Capital Work-in-progress
CAPITAL WORK-IN-PROGRESS AS AT 31 MARCH 2020 Note Opening Current Year Ready for Closing balance WIP use (Assets balance 1 April 2019 to the AR) 31 March 2020 / Contracts terminated Annexure 7 R’000 R’000 R’000 R’000 Heritage assets - - - -
Buildings and other fixed structures 188 473 39 067 125 187 102 353
Machinery and equipment - - - -
Intangible assets 8 661 29 781 - 38 442
TOTAL 197 134 68 848 125 187 140 795
HVAC project at 78 FOX building was discontinued during the year under review. The Department is in a process of refurbishing its precinct buildings through a Public Private Partnership (PPP). This building is part of the Departments precinct buildings to be refurbished. This project will be continued through the PPP project. The cumulative costs to date is R43.7 million.
Age analysis on ongoing projects Number of 2019/20 Total projects Planned, Planned, R’000 Construction Construction not started started 0 to 1 Year 3 12 556
1 to 3 Years 3 54 183
3 to 5 Years 1 74 056
Longer than 5 Years
Total 7 140 795
Note 2019/20 2018/19 R’000 Payables not recognised
Capex Accruals( Work in progress) 2 892 -
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
180 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
CAPITAL WORK-IN-PROGRESS AS AT 31 MARCH 2019 Note Opening Prior period Current Year Ready for Closing balance balance error WIP use (Assets 31 March 1 April 2019 to the AR) ) 2019/20 / Contracts terminated Annexure R’000 R’000 R’000 R’000 R’000 7
Buildings and 49 393 80 205 58 875 - 188 473 other fixed structures
Machinery and - - - - - equipment
Intangible - - 8 661 - 8 661 assets
TOTAL 49 393 80 205 67 536 - 197 134
Age analysis on ongoing projects Number of 2019/20 Total projects Planned, Planned, R’000 Construction Construction not started started 0 to 1 Year - - -
1 to 3 Years - 3 149 497
3 to 5 Years - - -
Longer than 5 Years - - -
Total - 3 149 497
29.5 Immovable assets (additional information)
Note 2019/20 2018/19 a) Unsurveyed land Estimated Annexure 9 Area Area completion date
b) Properties deemed vested Annexure 9 Number Number
Land parcels
Facilities 1 318 1 280
Schools 215 228
Clinics 4 15
Hospitals 20 17
Office buildings 49 63
Dwellings 191 200
Storage facilities –
Other 839 757
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
181 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Note 2019/20 2018/19
c) Facilities on right to use land Duration of Annexure 9 Number Number use
Schools 1 064 1 077
Clinics 45 69
Hospitals 18 21
Office buildings 5 6
Dwellings 6 7
Storage facilities - –
Other 138 104
Agreement of custodianship Annexure 9 Number Number
Land parcels
Facilities 8
Dwellings 1
Other 7
Hospitals
Office buildings
Dwellings
Storage facilities
Other
Assets to be transferred for 2018/19 has been adjusted to nil as they were already transferred.
30. Prior period errors
30.1 Correction of prior period errors
Note Amount bef Prior period Restated error correction error Amount 2018/19 2018/19 2018/19 R’000 R’000 R’000 Revenue: (e.g. Annual appropriation, Departmental revenue, Aid assistance, etc.)
Accrued Departmental Revenue 48 358 1 231 49 589
Net effect 48 358 1 231 49 589
Payment received in relation to both residential and commercial properties were not accounted for in the prior balance hence the opening balance was restated to R49,5 million.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
182 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended • 31 March 2020 For the year ended • 31 March 2020
Note Amount bef Prior period Restated error correction error Amount 2018/19 2018/19 2018/19 R’000 R’000 R’000 Expenditure :
Key Management personnel 31 131 1 051 32 182
Compensation of employees (Service based) 50 059 (48 728) 1 331
Compensation of employees ( Other – non 77 955 48 728 126 683 pensionable allowances)
Goods and services (Contractors) 93 076 (93 076) -
Goods and services (Property payments 158 043 93 076 251 119
Net effect 410 264 1 051 411 315
1. Key Management Personnel The modified cash basis of accounting standards required that the Departments include Chief Risk Officer as part of Key management personnel. The above correction is intended to include CRO as part of Key management personnel. 2. Compensation of employees The adjustment from service based to other non – pensionable allowance came as a result of the interpretation of the SCOA classification which has since resulted in the correction of this sub-items under compensation of employees. 3. Goods and Services The adjustment from Contractors to Property payments is as a result of incorrect classification on a sub item level to the correct sub item Property payments.
Assets: (e.g. Receivables, Investments, Accrued departmental revenue, Movable tangible capital assets, etc.)
Note Amount bef Prior period Restated error correction error Amount 2018/19 2018/19 2018/19 R’000 R’000 R’000 Assets:
Contingent assets 2 082 (465) 1 617
Work in Progress 108 268 80 205 188 473
Net effect 110 350 79 740 190 090
For the year 2018/19, the Department reported an amount of R15 000.00 and R450 000.00 as contingent assets. These two figures are now corrected and should be reported undr employee benefits.
Note Amount bef Prior period Restated error correction error Amount 2018/19 2018/19 2018/19 R’000 R’000 R’000 Liabilities:
Negative Capped leave 15 (15) -
Negative leave Entitlement 450 (450) -
Employee benefits 115 247 465 115 712
Capital Commitments 11 201 49 369 60 570
Net effect 129 913 49 369 176 282
For the year 2018/19, the Department reported an amount of R15 000.00 and R450 000.00 as contingent assets. These two figures are now corrected and should be reported undr employee benefits.
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
183 183 NOTES TO THE ANNUAL FINANCIAL STATEMENTS ANNEXURES
For the year ended • 31 March 2020 For the year ended • 31 March 2020
31. Inventories
30.1 Inventories ended 31 March 2020 INV: INV: INV ; INV: Protective Hardware 9 Electrical & Hardware ( Clothing and Building and Lubricant Plumbing, TOTAL Food Painting) Supplies Mechanical Carpentry, Filter R’000 R’000 R’000 R’000 R’000 Opening balance 6 621 912 3 779 2 749 14 061
Add/(Less): Adjustments to prior year 1 363 1 21 - 1 385 balances
Add: Additions/Purchases – Cash
Add: Additions – Non-cash (1 039) (1 039)
(Less): Disposals
(Less): Issues (5) (59) (104) (899) (1 067)
Add/(Less): Received current, not paid (Paid current year, received prior year)
Add/(Less): Adjustments (365) (365)
Closing balance 7 979 854 3 696 446 12 975
Inventories for the year ended 31 March 2019 INV: INV: INV ; INV: TOTAL Protective Hardware 9 Electrical & Hardware ( Clothing and Building and Lubricant Plumbing, Food Painting) Supplies Mechanical Carpentry, Filter R’000 R’000 R’000 R’000 R’000 Opening balance 44 984 4 062 10 266 15 356
Add/(Less): Adjustments to prior year balances
Add: Additions/Purchases – Cash 6 599 133 8 - 6 740
Add: Additions – Non-cash
(Less): Disposals
(Less): Issues (22) (205) (291) (1 190) (1 708)
Add/(Less): Received current, not paid (Paid current year, received prior year)
Add/(Less): Adjustments (6 327) (6 327)
Closing balance 6 621 912 3 779 2 749 14 061
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
184 NOTES TO THE ANNUAL FINANCIAL STATEMENTS ANNEXURES
For the year ended • 31 March 2020 For the year ended • 31 March 2020 Amount spent by department 2018/19 of Act R’000 R’000 Division Revenue 100 17 780 17 780 100 17 780 17 780 % % of funds spent by available department R’000 Under / (Overspending) SPENT Amount spent by department by Amount received received department 23 878 23 878 23 878 23 878 23 878 23 878 Total Total R’000 R’000 R’000 Available R’000 Other Adjustments DORA Adjustments GRANT ALLOCATION Roll Overs 23 878 23 878 R’000 R’000 R’000 Grants Provincial Provincial Division of Revenue Act/ ST
GRANT NAME OF Total EPWP/ Incentive Grant 32. OF CONDITIONAL GRANTS RECEIVED ATEMENT
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
185 ANNEXURES ANNEXURES
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - - Actual transfer - - - 8 000 6 979 75 394 79 459 11 000 10 000 6 011 8 186 20 000 14 046 11 000 13 917 Appro- 310 000 380 605 250 000 226 371 206 000 165 827 901 394 901 401 priation % of funds pality munici- spent by available funds Unspent SPENT Amount spent by municipality by R’000 R’000 R’000 % R’000 R’000 Amount received received munici-pality % Re- National allocations Treasury or Treasury by National Depart-ment Funds TRANSFER Withheld - - - 588 583 488 798 904 766 263 373 329 084 092
Actual Transfer - - - 000 417 000 372 000 173 375000 71 000 13 000 9 000 6 000 7 11
78 13 12 10 23 13 Total Total 054 375 1 335 300 270
Available 1 ments Adjust- Roll Overs - - - GRANT ALLOCATION 000 000 000 375 000 000 000 000 000
78 23 13 12 10 13 R’000 R’000 R’000 R’000 R’000 R’000 300 270 335 DoRA transfers 1 054 375 and other NAME OF MUNICIPALITY City of Tswane Ekurhuleni Emfuleni Mogale Lesedi Merafong Midvaal DC48 WestRand Dist municipality Sedibeng Rand West TOTAL Vehicle and Licences Vehicle or the transferring department, certify that all transfers in by the National Treasury to indicate any re-allocations of the DORA requirements reminded National Departments are as well indicate the funds utilised for into the CPD account of a province appropriate, where or, deposited into the primary bank account of a province terms of this Act were officer. administration of the receiving City of Johannesburg UNAUDITED ANNEXURE UNAUDITED 1A MUNICIPALITIES TO OF PAYMENTS STATEMENT
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
186 ANNEXURES ANNEXURES
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - Final R’000 Appropriation - 0% 64% 59% 184% % % of Transferred Available funds Available - 88 641 5 619 6 348 R’000 Actual Transfer 149 627 1 000 3 049 4 825 R’000 Available - - R’000 Adjust-ments Total - - Roll R’000 Overs EXPENDITURE 2019/20 149 627 1 000 3 049 4 825 Act R’000 Adjusted TRANSFER ALLOCATION Appro-priation Appro-priation
HOUSEHOLDS Transfers Bursaries Injury on Duty Leave Gratuity Claims against State Subsidie TOTAL UNAUDITED ANNEXURE UNAUDITED 1G OF TRANSFERS TO HOUSEHOLDS STATEMENT
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
187 ANNEXURES ANNEXURES
For the year ended • 31 March 2020 For the year ended • 31 March 2020 R’000 Accrued interest for interest March 2020 March guaranteed year ended 31 R’000 due to movements Revaluations inflation rate 30 15 11 56 56 R’000 Closing balance 31 March 2020 31 March R’000 currency currency movements Revaluation due to foreign due to foreign year R’000 reduced reduced cancelled/ during the Guarantees repayments/ repayments/ year R’000 during the Guarantees draw downs 56 56 30 15 11 R’000 balance Opening 1 April 2019 R’000 capital amount Original guaranteed respect of respect Guarantee in Housing Subtotal TOTAL Guarantor institution Standard bank Standard First rand Nedbank UNAUDITED ANNEXURE UNAUDITED 3A 31 MARCH 2020– LOCAL AT AS ISSUED OF FINANCIAL GUARANTEES STATEMENT
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
188 ANNEXURES ANNEXURES
For the year ended • 31 March 2020 For the year ended • 31 March 2020
286 295 286 295 R’000 31 March 2020 31 March Closing Balance - R’000 Liabilities hereunder) recoverable recoverable (Provide details (Provide
16 271 16 271 R’000 the year cancelled/ reduced during reduced Liabilities paid/ 69 177 69 177 R’000 the year Liabilities incurred during incurred
233 389 233 389
R’000 Balance Opening 1 April 2019 Nature of Liability Nature TOTAL Claims against the department UNAUDITED ANNEXURE UNAUDITED 3B 31 MARCH 2020 AT AS OF CONTINGENT LIABILITIES STATEMENT
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
189 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
ANNEXURES ANNEXURES
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - – R’000 Amount - – 2019/20 * Cash in transit at year end up to six (6) working days after year end 13 13 13 R’000 Total - 279 1 872 3 433 1 282 3 433 R’000 13 13 13 R’000 - 279 outstanding 1 872 3 433 1 282 3 433 R’000 - - - R’000 - - - R’000 31/03/2020 31/03/2019 31/03/2020 31/03/2019 31/03/2020 31/03/2019 Receipt date Confirmed balance outstanding Unconfirmed balance Government Entity S.A Defence Force Gauteng Department of Transport Gauteng Department of Community Safety Other Government Entities e-Gov TOTAL Department UNAUDITED ANNEXURE UNAUDITED 4 CLAIMS RECOVERABLE
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
190 ANNEXURES ANNEXURES
For the year ended • 31 March 2020 For the year ended • 31 March 2020 ------R’000 Amount ------end before year before up to six (6) working days 75 24 756 297 15 850 16 705 14 594 14 891 31 596 R’000 - - - - TOTAL 100 100 7 417 7 417 7 517 R’000 ------R’000 ------32 32 32 outstanding R’000 75 24 756 297 14 594 16 705 15 850 14 891 31 596 R’000 - - - - 68 68 7 417 7 417 7 485 R’000 31/03/2020 31/03/2019 31/03/2020 31/03/2019 31/03/2020 31/03/2019 Payment date GOVERNMENT ENTITY Confirmed balance outstanding Unconfirmed balance State Information Technology Office of the Premier Department of Justice Subtotal OTHER GOVERNMENT ENTITY Current Gauteng Government Motor DEPARTMENTS Current Gauteng Human Settlement Gauteng Education
Subtotal TOTAL UNAUDITED ANNEXURE UNAUDITED 5 PAYABLES INTER-GOVERNMENT
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
191 ANNEXURES ANNEXURES
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - 385 039) 067)
(365) 1 (1 14 061 (1 12 975 R’000 TOTAL - - 446 039)
(899) (365) 2 749 (1 R’000 Filter) Hardware Hardware (Plumbing, Mechanical, Carpentry and - - - 21 (104) 3 779 3 696 R’000 supplies Lubricant Electrical & - - - 1 912 (59) 854 R’000 Painting) Hardware Hardware (Building & - - - (5) 363
6 621 1 7 979 Food R’000 Protective Protective Clothing and Inventories for the year ended 31 March 2020 Inventories for the year ended 31 March Opening balance Add: Additions – Non-cash (Less): Disposals (Less): Issues not paid Add/(Less): Received current, prior year) received year, (Paid current Add/(Less): Adjustments to prior year balances – Cash Add: Additions/Purchases Add/(Less): Adjustments Closing balance UNAUDITED ANNEXURE UNAUDITED 6 INVENTORIES
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
192 ANNEXURES ANNEXURES
For the year ended • 31 March 2020 For the year ended • 31 March 2020 708) 327)
6 740 14 061 (6 (1 15 356 R’000 TOTAL - 190)
2 749 (1 (6 327) 10 266 R’000 inventory category of Insert major - 8 (290) 3 779 4 062 R’000 inventory category of Insert major - 133 912 984 (205) R’000 inventory category of Insert major - 44 (22) 6 599 6 621 R’000 inventory category of Insert major Inventories for the year ended 31 March 2019 Inventories for the year ended 31 March Add: Additions – Non-cash (Less): Disposals (Less): Issues Add/(Less): Adjustments to prior year balances – Cash Add: Additions/Purchases Add/(Less): Received current, not paid Add/(Less): Received current, prior year) received year, (Paid current Add/(Less): Adjustments Closing balance Opening balance
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
193 ANNEXURES ANNEXURES
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - 38 442 38 442 140 795 102 353 102 353 R’000 Closing balance - - - - (125 187) (125 187) (125 187) R’000 terminated register) / Contract register) Ready for use (Asset - - 29 781 29 781 68 848 39 067 39 067 WIP R’000 - - 8 661 8 661 197 134 188 473 188 473 R’000 Opening balance Capital Year Current MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2020 MOVEMENT IN CAPITAL LAND AND SUBSOIL ASSETS Land resources Mineral and similar non-regenerative SOFTWARE Software TOTAL Other fixed structures Non-residential buildings Non-residential Dwellings BUILDINGS AND OTHER FIXED STRUCTURES UNAUDITED ANNEXURE UNAUDITED 7 IN PROGRESS WORK IN CAPITAL MOVEMENT
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
194 ANNEXURES ANNEXURES
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - 8 661 8 661 188 473 188 473 197 134 R’000 Closing balance ------R’000 terminated register) / Contract register) Ready for use (Asset use for Ready - - - - 58 875 58 875 58 875 WIP R’000 - - - - 80 205 80 205 80 205 R’000 - - 8 661 8 661 49 393 49 393 58 054 R’000 Opening balance Prior period error Capital Year Current MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2020 MOVEMENT IN CAPITAL BUILDINGS AND OTHER FIXED STRUCTURES Dwellings Non-residential buildings Non-residential Other fixed structures LAND AND SUBSOIL ASSETS Land resources Mineral and similar non-regenerative SOFTWARE Software TOTAL
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
195 ANNEXURES ANNEXURES
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - - - – 15 17 63 757 228 200 1 280 Note Area Annexure 9 - - - - – 4 20 49 839 215 191 1 318 Area Area 2019/20 2018/19 Number Number Duration of use Annexure 9 Annexure 9
Estimated completion date Schools Land parcels Land parcels Clinics Storage facilities Other Facilities Schools Hospitals Office buildings Dwellings Clinics Hospitals Office buildings c Facilities on unsurveyed land a Unsurveyed land b deemed vested Properties 42 Immovable assets additional information UNAUDITED ANNEXURE UNAUDITED 9 ASSETS ON IMMOVABLE ADDITIONAL INFORMATION The detail for note 41.7 may be included in this annexure. to comply with the Immovable Asset Guide can be inserted here. in order to suit their specific circumstances Wording
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
196 ANNEXURES ANNEXURES
For the year ended • 31 March 2020 For the year ended • 31 March 2020 - - - – – – – – – – 8 6 7 1 7 69 21 104 1 077 Note Annexure 9 Annexure 9 - - - – – – – – – – – 5 6 45 18 138 1 064 2019/20 2018/19 Duration of use
Dwellings Storage facilities Other Land parcels Facilities Schools Clinics Hospitals Office buildings Dwellings Schools Clinics Hospitals Office buildings Dwellings Storage facilities Other Storage facilities Other e of custodianship Agreement d Facilities on right to use land
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20 ANNUAL REPORT • 2019/20
197 Notes to the Annual Financial Statements (including Accounting policies)
For the year ended • 31 March 2020
NOTES NOTES
GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT
ANNUAL REPORT • 2019/20
198