PROVINCE of MPUMALANGA DEPARTMENT of PUBLIC WORKS, ROADS and TRANSPORT Vote No

ANNUAL

PROVINCE OF MPUMALANGA DEPARTMENT OF PUBLIC WORKS, ROADS AND TRANSPORT Vote No. 08 ANNUAL REPORT 2012/13

Annual Report 201213.indb 1 8/19/2013 7:56:22 AM ANNUAL CONTENTS PART A: GENERAL INFORMATION 3 1. GENERAL INFORMATION 4 2. LIST OF ABBREVIATIONS/ACRONYMS 4 3. STRATEGIC OVERVIEW 5 3.1. Vision 5 3.2. Mission 5 3.3. Values 5 3.4. Strategic outcome orientated goals 5 4. LEGISLATIVE AND OTHER MANDATES 6 5. ORGANISATIONAL STRUCTURE 7 6. FOREWORD BY MEC 8 7. OVERVIEW OF THE ACCOUNTING OFFICER 10 PART B: PERFORMANCE INFORMATION 11 1. STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION 12 2. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES 13 3. OVERVIEW OF DEPARTMENTAL PERFORMANCE 13 3.1. Service Delivery Environment 13 3.2. Organisational environment 14 3.3. Key policy developmentents and legislative changes 15 4. STRATEGIC OUTCOME ORIENTED GOALS 15 5. PERFORMANCE INFORMATION BY PROGRAMME 15 5.1. Programme 1: Administration 15 5.2. Programme 2: Public Works 17 5.2. Programme 3: Transport Infrastructure 22 5.2. Programme 4: Transport Operations 25 5.2. Programme 5: Community Based Programmes 30 6. SUMMARY OF FINANCIAL INFORMATION 32 6.1. Departmental receipts 32 6.2. Programme Expenditure 33 6.3. Conditional grants and earmarked funds received 33 6.4. Capital investment, maintenance and asset management plan 34 PART C: GOVERNANCE 51 1. INTRODUCTION 52 2. RISK MANAGEMENT 52 3. FRAUD AND CORRUPTION 52 4. MINIMISING CONFLICT OF INTEREST 52 5. CODE OF CONDUCT 52 6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES 53 PART D: HUMAN RESOURCE MANAGEMENT 55 1. LEGISLATURE THAT GOVERN HR MANAGEMENT 56 2. INTRODUCTION 56 3. HUMAN RESOURCE OVERSIGHT STATISTICS 57 3.1. Personnel related expenditure 57 3.2. Employment and Vacancies 58 3.3. Job Evaluation 60 3.4. Employment Changes 61 3.5. Employment Equity 66 3.6. Performance Rewards 69 3.7. Foreign Workers 71 3.8. Leave utilisation 72 3.9. HIV/AIDS and Health Promotion Programmes 73 3.10. Labour Relations 74 3.11. Skills developmentent 75 3.12. Injury on duty 76 PART E: FINANCIAL INFORMATION 77

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1. GENERAL INFORMATION Physical Address: Department of Public Works, Roads and Transport Building No. 7 Riverside Government Complex Government Boulevard Nelspruit 1200 Postal Address: Mpumalanga Provincial Government Department of Public Works, Roads and Transport Private Bag X11302 Nelspruit 1200 Telephone Number: +27 13 766 6696 Fax Number: +27 13 766 8453 Website Address: dpwrt.mpg.gov.za 2. LIST OF ABBREVIATIONS/ACRONYMS

AFS Annual Financial Statements AGSA Auditor General of South Africa APP Annual Performance Plan BBBEE Broad Based Black Economic Empowerment CFO Chief Financial Officer CIDB Construction Industry Development Board COGTA Cooperative Governance and Traditional Affairs DCSR Department of Culture, Sports and Recreation DoE Department of Education DoH Department of Health DPSA Department of Public Service and Administration DPWRT Department of Public Works, Roads and Transport DSD Department of Social Development EPWP Expanded Public Works Programme EWP Employee Wellness Programme EXCO Executive Council FFP Fraud Prevention Plan GMT Government Motor Transport HDI Historical Disadvantaged Individual HIV/ Aids Human immune-deficiency virus/ acquired immune-deficiency syndrome HOD Head of Department HRM Human Resource Management HRU&CD Human Resource Utilisation and Capacity Development ICT Information Communication Technology IDT Independent Development Trust IPMP Implementation Project Management Plan IRMA Integrated Rural Mobility and Accessibility IRPTN Integrated Rapid Public Transport Network IRS Integrated Reporting System IT Information Technology MEC Member of Executive Council MMS Maintenance Management System MPAT Management Performance Assessment Tool MTEF Medium Term Expenditure Framework NYS National Youth Services OLAS Operating Licence Administrative System OSD Occupation Specific Dispensation PAIA Promotion of Access to Information Act

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PFMA Public Finance Management Act PLWD People Living With Disabilities PWD People With Disabilities PMU Project Management Unit RAMS Road Asset Management System RGC Riverside Government Complex TB Tuberculoses UAMP User Asset Management Plans VO Variation Order WOE Women Owned Enterprise 3. STRATEGIC OVERVIEW 3.1. Vision An integrated transport system and infrastructure that promotes socio-economic development. 3.2. Mission To effectively and efficiently implement all mandates relating to- • traffic management*; • asset and property management; • public and freight transport; and • roads and building infrastructure to the benefit of all end-users.

* The mandate relating to traffic management is now implemented by the Department of Community Safety, Security and Liaison as of November 2011.

3.3. Values

Service Excellence An exceptional service delivery is required to attain the goals of the Department

Innovation Is required to ensure that the processes utilised remain state of the art and allows the Department to attain its goals

Accountability Being answerable and responsible for its actions to the public

Integrity Being honest, truthful and straightforward in dealing with the community and acting in a manner beyond reproach

Diversity Accepting and acknowledging the cultural mix of its community

Team Work Continuously cooperating and collaborating with all spheres of Government and stakeholders

Best Practice Applying international best practice methods and good corporate governance in dealings Loyalty Expressing allegiance to community, central Government and the people of South Africa

Value for Money All the customers paying for the real value attained

3.4. Strategic outcome orientated goals • To manage resources prudently • To provide, manage and maintain building and transport infrastructure • To ensure effective public and freight transport management • To coordinate the implementation of the EPWP 2 in the Province • To continually improve our systems and procedures

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4. LEGISLATIVE AND OTHER MANDATES • Architectural Profession Act, 2000 (Act No. 44 of 2000) • Basic Conditions of Employment Act, 1997 (Act No. 75 of 1997) • Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003) • Compensation for Occupational Injuries and Diseases Act, 1993 (Act No. 130 of 1993) • Constitution of the Republic of South Africa,1996 • Construction Industry Development Board Act, 2000 (Act No. 38 of 2000) • Council for the Built Environment Act, 2000 (Act No. 43 of 2000) • Criminal Procedure Act, 1977 (Act No. 51 of 1977) • Deeds Registries Act, 1997 (Act No. 47 of 1997) • Division of Revenue Act, 2008 (Act No. 2 of 2008) • Electronic Communications Act, 2005 • Electronic Communications and Transition Act, 2002 (Act No. 25 of 2002) • Electronic Communications Security (PTY)LTD Act, 2002 (Act No. 68 of 2002) • Employment Equity Act, 1998 (Act No. 55 of 1998) • Engineering Profession Act, 2000 (Act No. 46 of 2000) • Environment Conservation Act, 1989 (Act No. 73 of 1989) • Firearm Control Act, 2000 (Act No. 60 of 2000) • Government Immovable Asset Management Act, 2007 (Act No. 19 of 2007) • Labour Relations Act, 1995 (Act No. 66 of 1995) • Landscape Architectural Profession Act, 2000 (Act No. 45 of 2000) • Mpumalanga Roads Act, 2008 • Mpumalanga Road Traffic Act, 1998 (Act No. 4 of 1998) • National Archives of South Africa Act, 1996 (Act No. 43 of 1996) • National Building Regulations and Building Standards Amendment Act, 1995 (Act No. 49 of 1995) • National Environmental Management, 2008 (Act No. 62 of 2008) • National Heritage Council Act, 1999 (Act No. 11 of 1999) • National Heritage Resources Act, 1999 (Act No. 25 of 1999) • National Land Transport Transition Act, 2009 (Act No. 5 of 2009) • National Road Traffic Act, 1996 (Act No. 93 of 1996) • National Waste Management Act, 1996 (Act No. 59 of 2008) • Occupational Health and Safety Act, 1993 (Act No. 85 of 1993) • Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000) • Prevention and Combating of Corrupt Activities Act, 2004 (Act No. 12 of 2004) • Project and Construction Management Professions Act, 2000 (Act No. 48 of 2000) • Promotion of Administrative of Justice Act, 2000 (Act No. 3 of 2000) • Promotion of Access to Information Act, 2000 (Act No. 2 of 2000) • Property Valuers Profession Act, 2000 (Act No. 47 of 2000) • Public Finance Management Act,1999 (Act No. 1 of 1999) • Public Service Act, 1994 (Proclamation No. 103 of 1994) • Quantity Surveying Profession Act, 2000 (Act No. 49 of 2000) • Road Transportation Act, 1977 (Act No. 74 of 1977) • Skills Development Act, 1998 (Act No. 97 of 1998) • Skills Development Levies Act, 1999 (Act No. 9 of 1999) • South African Qualifications Authority Act, 1995 (Act No. 58 of 1995) • South African Schools Act, 1996 (Act No. 84 of 1996) • State Information Technology Agency Act, 1998 (Act No. 88 of 1998) • Town and Regional Planning Act, 2002 (Act No. 36 of 2002) • Transport Appeal Tribunal Act, 1998 (Act No. 39 of 1998) • Transvaal Roads Ordinance, 1957 (Ordinance No. 22 of 1957)

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5. ORGANISATIONAL STRUCTURE

MEC: DG MAHLANGU

HOD: KM MOHLASEDI

STRATEGIC MANAGEMENT: GENERAL MANAGER: TF NTULI (ACTING)

. Internal Audit . Communication . Legal Services . Security Services

DDG: CORPORTE SERVICES: DDG: PUBLIC FREIGHT DDG: INFRASTRUCTURE: W MTHOMBOTHI TRANSPORT: (VACANT) M MOROLO

. Financial Management . Public Transport and Freight . Programme Management Unit . Government Motor Transport . Building Infrastructure . District Services . Property Management . Integrated Planning . Roads Infrastructure . Human Resource Management . Community Based Programme and Development

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6. FOREWORD BY THE MEC It is with great sense of honour and pride that I am once again afforded the opportunity to present the Department of Public Works, Roads and Transport Annual Report for the 2012/13 financial year. The Department continued to strive to achieve its vision of providing an integrated transport system and infrastructure that promotes socio-economic development. The Annual Report presents a platform for the Department to demonstrate to the public how commitments and plans made over the previous financial year have been achieved. Although several challenges were encountered during the year under review, I am happy with the overall achievement by the Department. Infrastructure delivery remains a key priority area in achieving the growth and developmental imperatives of the Province. The Department completed a number of key infrastructure projects, including the Provincial Archives Building, Hluvukani Community Health Centre just to mention a few. In all, a total number of 124 building infrastructure projects were completed on behalf of 4 client Departments. In addition, the following roads Infrastructure projects were completed, construction of Goromane Bridge, upgrading of the road from Mooiplaas to Ekulindeni (9.6 km); upgrading of road D1869 and D1870 between Marloth Park and Komatipoort (18.5 km) and numerous roads that provide reliable access to communities of Mpumalanga. To stimulate the Provincial economy, a coordinated infrastructure development cannot be overemphasised. In this regard the Department has developed the Mpumalanga Infrastructure Master Plan (MIMP) in order to translate our policy, strategy and planning outputs into tangible deliverables. MIMP builds on and informs other infrastructure strategies and plans, and it is a critical element in delivering integrated and value-for-money infrastructure. The Department commenced with the roll-out of the new scholar transport vehicles in Gert Sibande and Bohlabela districts. By 31 March 2013, 55 vehicles had been introduced in the Gert Sibande (45) and Bohlabela (10) districts respectively. The roll-out will ensure that the management and administration of scholar transport involves the school governing bodies. In order to ensure effective utilization of scholar transport, adherence to the Mpumalanga Scholar Transport Policy is required. In this regard the support of parents and the school principals is essential. The Expanded Public Works Programme (EPWP) remains a flagship in the creation of job opportunities, enterprise and skills development. To this end, a total of 85 024 job opportunities were created across the Province. Local and emerging contractors also benefited from the increased capital investment related to this programme. The Department will continue to facilitate the mainstreaming of EPWP through the four sectors: infrastructure; social; environment & culture; and non-state sector. However, there is still a need to improve EPWP coordination across all sectors. An Integrated Reporting System (IRS) was inproduced to improve overall reporting on this strategic programme. In the year ahead, we will increase our capacity to plan, implement, monitor and provide the required oversight on project delivery. We will also review various policies to strengthen internal controls, systems and processes to enhance good governance. In addition, we will continue to address issues raised in the Auditor General’s report in an endeavour to achieve a clean audit in 2013/14 financial year. In conclusion I would like to thank the Head of Department and entire staff for their steadfast commitment and hard work towards the realization of our mandate. The role and commitment of the Department is critical in ensuring that the burden of unemployment, poverty and inequalities is minimized. By working together, I believe we will continue to make a difference in the lives of people of Mpumalanga.

______DG Mahlangu MEC of the Department of Public Works, Roads and Transport Date: 31 July 2013

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7. OVERVIEW OF THE ACCOUNTING OFFICER The Annual Report for the financial year 2012/13 reflects on the Department of Public Works, Roads and Transport performance against the set targets. The report also demonstrates the Department’s capacity to implement its programs towards the achievement of its set strategic objectives. The Department provided its services in a competitive environment where costs and demands are constantly increasing. Notwithstanding this, we managed our fiscal responsibility prudently and delivered on our target outputs within the constraints of the Departmental resources. The total expenditure for the Department was R3,523,082,000 against a budget of R3,527,481, 000 thus indicating a surplus of R 4,399,000 at year end. This information is reflected in the comprehensive Annual Financial Statement included in this report. During the year under review, the Department improved on the following core administrative competencies: • Signing of performance agreements which improved from 98.6% to 99.7%. This is mandatory and critical in tracking individual staff performance. Furthermore, it enabled the various business units to align their operations to the strategic direction of the Department. • Human resources management through enhancement of the internship and other capacity building initiatives. • Good governance based on several routine audits on financial and operational areas within the Department. • Timeous responding to all formal requests for access to Departmental records under the Promotion of Access to Information and Act 2000 (PAIA). The Department will continue to improve governance of public infrastructure delivery by implementing more efficient project planning, coordination and program management. This includes the use of Information Technology (IT) developed and web-enabled tools such as Road Asset Management System (RAMS) and Maintenance Management System (MMS), etc. These systems will provide scientifically established data to guide and inform infrastructure planning, budgeting and forecasting. In addition to the IT planning tools, we are committed to developing high-quality transport modeling tools that assess the different modes of transport options to support evidence-based planning across Mpumalanga. This will be done to ensure that mobility of the citizens is enhanced. The Department will also improve its governance and management systems to support strong decision making. Furthermore, the Department will develop improvement plans based on an assessment of the 2012/13 performance. One of the Department’s key priorities for 2013–14 is to rebuild the rural access road network to make it better and safer. The Department will increase its contribution to the improvement of mobility within the rural parts of the Province. To this end, infrastructure plans to address challenges facing municipalities, flood damaged infrastructure and improving access to social facilities such as schools and hospitals has been developed. Plant and equipment will be procured in order to enhance the capacity of the Department to provide the necessary Municipal Support. I want to thank the MEC for Public Works, Roads and Transport for her continued support to the administration of the Department. I am exceptionally proud of the hard work and dedication of our staff – none of our projects or outcomes could be delivered without them. I would also like to thank the Audit Committee for its advice on governance, risk management and internal control practices.

______KM MOHLASEDI Accounting Officer Date: 31 July 2013

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Annual Report 201213.indb 10 8/19/2013 7:56:31 AM ANNUAL PART B: PERFORMANCE INFORMATION

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1. STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION The Accounting Officer is responsible for the preparation of the Department’s performance information and for the judgements made in this information. The Accounting Officer is responsible for establishing, and implementing a system of internal control designed to provide reasonable assurance as to the integrity and reliability of performance information. In my opinion, the performance information fairly reflects the performance information of the Department for the financial year ended 31 March 2013.

______KM MOHLASEDI Accounting Officer Date: 31 July 2013

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2. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES The AGSA currently performs the necessary audit procedures on the performance 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 Part E: Financial Information for the Report of the Auditor General. 3. OVERVIEW OF DEPARTMENTAL PERFORMANCE 3.1 Service delivery environment An integrated transport system and infrastructure that promotes socio-economic development is vital for achieving job creation, efficient transportation of commuters and learners and access to goods and services. During 2012/13, many factors influenced the Department’s ability to deliver its mandate, including the following: World-wide economic activity slowing down The global economic meltdown presented new challenges, requiring a strong response from Governments around the world – and Mpumalanga was no exception. In such an economic turmoil climate, it was important to invest in capital projects that would stimulate local economic growth while providing a sustainable environment for the much needed employment and business opportunities. These investments did not only help the public to weather the current economic situation but formed the foundation of a stronger future for South Africa as a whole. During 2012/13 the Department had approximately 251 active projects (including 231 from client Departments) of which 128 were completed. Technical skills shortage The shortage of technical skills and capacity in South Africa has been identified as one of the main impediments to achieving the stated economic growth and productivity rates of the Government. The history of the current situation can be partly traced back to the apartheid regime. In this era, there was total negligence of developing the marginalized groups. Also, there has been brain drain from the country’s skills base due to emigration to other countries. The private sector has compounded the matter by poaching the best of what the public service can offer through competitive remuneration packages. Within the Department, this challenge was addressed by a number of strategies including: training of employees, affirmative action, Occupation Specific Dispensation (OSD), etc. Overloading Due to the large traffic volumes and heavy loads on coal haul roads, the condition of these roads is worse than the rest of the provincial road network. As part of a Government initiative to safeguard sustainable energy provision, special funding was made available to rehabilitate and maintain the coal haul road network. The purpose of this funding is to maintain the condition of the coal haulage routes at minimum acceptable standards and mitigate the onset of deterioration in ways that provide the “least cost over the life-cycle” of the infrastructure. The Mpumalanga Provincial Government and other Government agencies collaborated with private sector to rehabilitate and maintain the coal haulage network. Increasing access to free and quality education The Constitution guarantees the right of all South Africans to a basic education. Government is therefore bound by the Constitution to provide compulsory schooling and progressively improved learning conditions and access to learning institutions. In support of this, the Department made a provision for Scholar Transport Services. However during the year, this budget came under pressure mainly due to learners being transported further distances and with identification of new routes. The shortfall was addressed through internal budget adjustments. Reporting on job creation Over the past 12 months, Mpumalanga created a total of 85 024 job opportunities through projects undertaken by the State, Organs of the State, Provincial departments and municipalities. As a result, an incentive grant of R56,049,000 (R16,617,000 DPWRT) was disbursed to the various role players during the year under review. The Province however failed to derive maximum benefit from this grant due to under reporting in most instances. Public Works, Roads and Transport as lead Department for coordinating EPWP in the Province will introduce various reporting reforms in the next financial year.

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3.2 Organisational environment The past year has been one of significant challenges, with severe budget constrains emanating from the 2011/12 accruals. The Department’s capacity to deliver essential services was threatened and these include amongst others: improvement of security measures at the Riverside Government Complex (RGC), provision of scholar transport services, maintenance of yellow fleet and other equipment, maintenance of buildings and road network as well as the coordination of the expanded public works programme. To counter this, major interventions with minimal impact on service delivery were introduced during the year. Amongst these were: cost curtailment measures - resulted in savings that were used to settle part of the accruals, reduction in the number of posts to be filled – only critical posts were prioritized and streamlining of the Department’s operations – eliminated redundancies and wastage which ensured value for money spent. Lastly, minor alignments were made on the plans to accommodate the above-mentioned intervention. In the 2012/13 financial year, measures were introduced to enhance an ethical workplace culture through the design, development and roll out of relevant policies, processes and procedural systems to raise ethical awareness and prevent misconduct. The Policy Unit conducted a series of policy advocacy and ethics sessions to provide employees with the relevant information and materials to assist in making better-informed decisions. To complete the above, all circulars from National Treasury and the other public bodies were considered during the year. Amongst these, was the DPSA’s directive for abolishment of unfunded posts on the Personnel and Salary System (PERSAL). The clean-up was intended to identify and remove unfunded vacant posts from organizational establishments so that there is reliable data about the total number of public servants and “real” vacancy rate. Since 2009/10, the Department has seen an increase in the proportion of women, and people with disabilities within its workforce. In 2012/13, women made up 39.5 percent; women in senior management made up 34 per cent and 2.4 per cent of the workforce were made up of people with disabilities. Refer to Figure 01 for analysis on Employment Equity performance. Figure 01: Employment equity performance

30 % Women in Department 20 % Women in SMS position 10

0 2009/10 2010/11 2011/12 2012/13

2.5

2 % People with Disability in Department 1.5 % of People with Disability 1 in SMS position

0.5

0 2009/10 2010/11 2011/12 2012/13

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3.3 Key policy developments and legislative changes List of transversal policies/manuals developed and reviewed in the 2012/13 financial year: Policy developed Policy reviewed Policy manuals developed Advance Policy Information Technology (IT) Policy Performance Management Procedure Manual Sports Policy Recruitment Policy Procedure Manual for Leave Subsidised Transport Policy Policy Telephone and Cellphone Policy Uniform and Protective Clothing Policy 4. STRATEGIC OUTCOME ORIENTED GOALS The table below describes the Department’s strategic outcome oriented goals as reflected in the Strategic Plan and the progress made towards the achievement of these goals.

Goal Progress to date To manage resources • Spent 100% of the budget allocation prudently • 100% of invoices paid within 30 days of receipt • 99.7 % of performance agreements signed To provide, manage and • Developed 5 Infrastructure Project Implementation Plans (IPIPs) maintain building and • Finalized the planning and design of 150 building and 7 roads transport infrastructure infrastructure projects • Completed 124 buildings and 3 roads projects • Updated the provincial immovable assets with 99 assets To ensure effective transport • Subsidized 6 bus operators to enable affordable and accessible public operations management transport • Provided financial assistance to the Provincial Taxi Council (R 6 million) • Contracted 101 operators to transport learners 66 615 learners • Completed 1 infrastructure project in support of non-motorized transport To coordinate the • Created 85 024 job opportunities implementation of the EPWP • Enrolled 600 beneficiaries on National Youth Service (NYS) co-operatives 2 in the Province • Registered 14 NYS co-operatives To continually improve our • Audit action plan developed to address the issues raised by Auditor systems and procedures General • Risk register developed and monthly evaluations conducted on management of identified risks Progress towards achievement of National Development Plan priorities and Outcome 6 In pursued of employment and economic priorities, tremendous strides were made in the delivery of responsive infrastructure network. These served as a catalyst for provincial economic growth and job creation. Details of the achievements are contained in the latter part of this report. The Province has also completed the inaugural Mpumalanga Infrastructure Master Plan which will guide provincial future capital investments. 5. PERFORMANCE INFORMATION BY PROGRAMMES The following section provides performance information per programme. Reasons for non-material variances (less than 2%) are not provided. 5.1. PROGRAMME 1: ADMINISTRATION Purpose The purpose of the Programme is to provide the Department with administrative, strategic, financial and corporate support services in order to ensure that it delivers on its mandate in an integrated, efficient, effective and sustainable manner. Sub-programmes • Office of the MEC • Management of the Department • Corporate Support

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Strategic objectives • To optimally utilise financial and physical resources • To provide integrated communication services • To improve risk management, control and good governance • To establish and manage the trading account for the Provincial fleet Strategic objectives, performance indicators, planned targets and actual achievements Strategic Actual Planned target Actual Deviation Comment on objective achievement 2012/2013 achievement from planned deviations 2011/2012 2012/2013 target to actual achievement for 2012/2013 To optimally 99% Expenditure 100% 100% None None utilise financial Expenditure Expenditure and physical resources To provide 71 000 50 000 50 000 None None integrated Newsletters Newsletters Newsletters communication services To improve risk Unqualified Unqualified Awaiting audit None None management, audit opinion audit opinion opinion control and good governance To establish and Trading Trading Account Trading Account Trading Account Funding for manage the Account not yet established not established not established billing system not trading account established secured for the Provincial fleet Summary of reasons for deviations • Delays in establishment of a trading account There were budgetary constraints emanating from the accruals of 2011/12 financial year. As a result the Department could not secure a revolving or working capital fund to kick start the billing which is required for the recovery of fleet costs from client Departments. Alternative billing systems will be explored to ensure cost effective provision and use of fleet assets. Programme performance indicators Performance Actual Planned target Actual Deviation Comment on indicator achievement 2012/2013 achievement from planned deviations 2011/2012 2012/2013 target to actual achievement for 2012/2013 % of Invoices 99% 100% 100% None None received and paid within 30 days Total amount R 22,2 R48 R26 R22 Refer to of revenue Million million million million summary of collected reasons for deviations % of 98.6% 100% 99.7% 0.3% None Performance Agreements signed Number of 45 20 20 None None interns recruited Number 39 20 None 20 Not of learners implemented recruited due to budgetary constraints Annual Annual Annual Annual None None performance Performance Performance Performance plan approved Plan approved Plan Plan: 2013/14 approved

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Performance Actual Planned target Actual Deviation Comment on indicator achievement 2012/2013 achievement from planned deviations 2011/2012 2012/2013 target to actual achievement for 2012/2013 Annual report Annual report Annual report Annual report: None None compiled printed and 2011/12 tabled tabled Summary of reasons for deviations • Under collection of revenue The projection for revenue collection was based on MTEF trends which were done before the transfer of Traffic Management to the Department of Community Safety, Security and Liaison. • Budgetary constraints The spill-over effect of the 2011/12 accruals resulted in a budget deficit for Programme 1. As a result, the Learnership Programme was suspended in the 2012/13 financial year. Strategies to overcome areas of under performance Areas of under performance Strategies to overcome areas of under performance Appointment of learners Future targets will be set high to compensate for the under-achievement of 2012/13 financial year. Collection of revenue To address this, all revenue sources will be re-analyzed to ensure realistic target setting. Furthermore, the Department applied and was granted approval to be registered as a revenue collection agency for rentals on all state owned houses. This will commence in the 2013/14 financial year. Linking performance with budgets The Programme had accruals of R18, 943 million from the 2011/12 financial year which resulted in budgetary constraints for the financial year 2012/13. The non-appointment of learners (20) can be directly attributed to the resultant budgetary constraints. Notwithstanding this, the available budget was used efficiently to achieve other Programme’s outputs. Sub-programme expenditure Sub- 2012/2013 2011/2012 programme Final Actual (Over)/ under Final Actual (Over)/ under name appropriation expenditure expenditure appropriation expenditure expenditure R’000 R’000 R’000 R’000 R’000 R’000 Office of the 7,675 7,620 55 5,919 5,919 0 MEC Management 3,534 3,440 94 3,281 3,242 39 of the Department Corporate 333,062 332,894 168 445,079 445,047 32 Support TOTAL 344,271 343,954 317 454,279 454,208 71 5.2. PROGRAMME 2: PUBLIC WORKS Purpose The purpose of the Programme is to provide a balanced and equitable provincial government building infrastructure by promoting accessibility that is sustainable, integrated and environmentally sensitive which supports economic development and social empowerment. Sub-programmes • Programme Support • Design • Construction • Maintenance • Property Management

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Strategic objectives • To provide effective infrastructure programme management services • To provide project planning and design services • To provide effective infrastructure implementation • To maintain Provincial immovable assets and equipment • To manage the immovable property and facility portfolio Strategic objectives, performance indicators, planned targets and actual achievements Strategic Actual Planned target Actual Deviation Comment on objective achievement 2012/ 2013 achievement from planned deviations 2011/2012 2012/ 2013 target to actual achievement for 2012/2013 To provide 4 IPMPs received 6 IPMPs received 5 IPMPs received -1 IPMP not Non submission effective received by DCSR infrastructure Programme management services To provide 134 Designs 142 Designs 150 Designs 8 Designs Additional project planning projects and design received services from client Departments To provide 321 Projects 130 Projects 27 Projects -103 Projects not Registered only effective registered registered registered registered those projects infrastructure advertised and implementation implemented by DPWRT To maintain 5 428 5 428 5 527 99 Immovable More assets Provincial Immovable Immovable Immovable Assets identified and immovable assets assets assets received from assets and National Public equipment Works To manage Updated asset Updated asset Asset register None None the immovable register register updated property and facility portfolio Summary of reasons for deviations • Non-registration of projects on CIDB’s Register of Projects exceeding R200 000 By law, clients must within one month of the award of the project register it on the CIDB’s Register of Projects. In compliance with this, 27 of the advertised building infrastructure projects were registered with CIDB using i-Tender. This figure excludes projects that were allocated to IDT and Sakh’abakhi or implemented by the Department of Education. • More immovable assets identified More properties were identified through physical verification and additional projects were received from National Public Works. Subsequently, the asset register was updated with these assets. Programme performance indicators Performance Actual Planned target Actual Deviation Comment on indicator achievement 2012/2013 achievement from planned deviations 2011/2012 2012/2013 target to actual achievement for 2012/2013 Sub-programme: Planning and Design Number of 4 IPMPs 6 (IPMPs 5 -1 Non submission by infrastructure received (DOH, (DOH, DSD, (DCSR) DCSR project DSD, DOE, DOE, DEDET management DCSR, DEDET and DCSSL) plans received and DCSSL)

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Performance Actual Planned target Actual Deviation Comment on indicator achievement 2012/2013 achievement from planned deviations 2011/2012 2012/2013 target to actual achievement for 2012/2013 Number of projects 137 130 150 20 Additional projects ready for tender (16 DOH, 104 (18 DOH, (2 DOH, received from DOE, 130 DOE, 26 DOE, client department 4 DSD, 1 DSD, -3 DSD, 5 DCSR, 0 DCSR, -5 DCSR) 1 DCSSL) 1 DCSSL) Number of projects 321 130 27 -103 Registered only registered (16 DOH, 104 (5 DOH, (-11DOH, those projects DOE, 20 DOE, -84 DOE, advertised and 4 DSD, 1 DSD, -3 DSD, implemented by 5 DSCR, 0 DCSR, -5DCSR) DPWRT 1 DCSSL) 1 DCSSL) Sub-programme: Construction: Project Implementation for Department of Health and Others Number of 14 16 9 -7 No responsive bids contracts (60% of total (35% of total received from HDI awarded to HDI’s number of number of service providers compliance projects) projects) services providers Number of 7 8 4 -4 No responsive bids contracts (30% of total (15 % of total received from WOE awarded to number of number of service providers Women Owned projects) projects) Enterprise (WOE) Number of projects 7 38 38 None Refer to summary completed within (5 DOH, (23 DOH, (30 DOH, of reasons for prescribed time 1 DCSR, 10 DCSR, 5 DCSR and deviations 1 DSD) 4 DSD, 3 DSD and 0 1 DEDET) DEDET) Number of projects 4 38 38 None Refer to summary completed within (3 DOH, (23 DOH, (30 DOH, of reasons for budget 1 DSCR) 10 DCSR, 5 DCSR and deviations 4 DSD, 3 DSD and 0 1 DEDET) DEDET) Sub-programme: Construction: Project Implementation for Department of Education Number of 4 62 (60% of total 91 (58% of 29 Additional projects contracts number of total number received from awarded to HDI’s projects) of projects) client department compliance services providers Number of 2 31 (30% of total 64 (62% of 33 Additional projects contracts number of total number received from awarded to projects) of projects) client department Women Owned Enterprise (WOE) Number of projects 33 188 86 102 Refer to summary completed within of reasons for prescribed time deviations Number of projects 188 188 86 102 Refer to summary completed within of reasons for budget deviations Sub-programme: Property and Facility Number of 5 428 5 428 5 527 99 More assets properties identified and registered in asset other dditional register received from National Public Works Number of 401 400 580 180 DOE transferred properties verified projects that in the asset register necessitated verification Number of 25 8 8 None None properties leased out

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Performance Actual Planned target Actual Deviation Comment on indicator achievement 2012/2013 achievement from planned deviations 2011/2012 2012/2013 target to actual achievement for 2012/2013 Number of request None 5 5 None None received for new accommodation from user Departments in UAMP Number of new None None None None No set target accommodation funding approved by PT Number of 1 100 1 098 1 098 None None residential properties leased- out Number of None 7 44 37 Fewer projects buildings in a very assessed due good state to budgetary Number of None 833 701 -132 constraints. Refer buildings in the to summary average state for reasons of deviations Number of None 47 109 62 buildings in a poor state Number of leases 76 1 111 1 179 68 New properties concluded identified during in respect of the vesting process provincially owned properties Number of lease 5 10 1 -9 No responsive agreements in bids for respect of office alternative office accommodation accommodation not renewed Number of 5 3 1 -2 Properties not properties acquired due acquired to budgetary constraints Number of new None 5 21 16 Leases for Pilgrim’s commercial leases Rest not part concluded of the target, but included in achievement Number of tenders None None None None Bill board awarded for bill advertising not board advertising allowed on on road reserves road reserves as stated in the Mpumalanga Roads Act Summary of reasons for deviations • Over-achievement on number of projects ready for tender The Department received a list of urgent projects for implementation from client departments. However, not all of these projects went through the tender process because term contractors were appointed in accordance with procurement procedures and with the client Department’s approval. • Non-responsive bids on some infrastructure projects Some of the bids received did not respond to the HDI and WOE requirements. • More education projects awarded to HDI companies The client department prioritized an additional 26 projects during the year hence there were more projects that were awarded to HDI companies.

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• Failure to complete projects on time and budget Client Departments faced increasing constraints on their resources as they battle to prioritize between infrastructure investments and delivering their core mandates. Contractual and institutional problems were also identified as significant causes behind cost and time overruns. • Condition assessment done on fewer buildings The building stock was assessed to obtain information about the condition of buildings, costs to bring them into good condition; plans for repairs, renovations and replacements. However, focus was limited to the public works portfolio due to budgetary constraints. • No responsive bids received for alternative office accommodation A total number of 14 bids were advertised for alternative office accommodation as per client departments’ requests. However, there was only 1 successful bid meaning that the rest of the existing contracts could not be terminated before securing alternative accommodation.

• Budget shortfalls The plan to acquire 2 hospitals on behalf of DoH was put on hold due to shortfalls within their budget. • Commercial leases concluded The lease agreements for Pilgrim’s Rest were planned for conclusion in 2011/12. However, they were delayed due to legal and procurement challenges. As a result, the target for 2012/13 could not be corrected timeously. Strategies to overcome areas of under performance Areas of under performance Strategies to overcome areas of under performance Registration of projects on CIDB Identify projects during planning that will be implemented and reported by other implementing agencies. Awarding of contracts to HDI and WOE Align reporting and awarding of contracts as per the new BBBEE companies ratings. Project implementation Reform the overall planning processes and introduction of cost review programmes to ensure quicker delivery of projects. Condition assessment on buildings Increase scope to the other available portfolios such as roads and other buildings. This will be complemented by adequate budgeting. Termination of office accommodation The sector has since removed the related indicator due to its leases inappropriateness. Acquisition of properties Proper planning and adequate budgeting Commercial leases Sector has since removed the related indicator due to its inappropriateness. Linking performance with budgets The Programme had accruals of R14, 767 million from the 2011/12 financial year which resulted in budgetary constraints for the financial year 2012/13. The failure to do condition assessment on all planned properties can be directly attributed to the resultant budgetary constraints. Nevertheless, the available budget was used efficiently to achieve other programme’s outputs. Sub-programme expenditure Sub- 2012/2013 2011/2012 programme Final Actual (Over)/ under Final Actual (Over)/ under Name appropriation expenditure expenditure appropriation expenditure expenditure R’000 R’000 R’000 R’000 R’000 R’000 Programme 2,970 2,970 0 3,240 3,227 13 Support Design 15,188 15,188 0 12,672 12,653 19

Construction 25,449 25,386 63 19,498 19,505 -7

Maintenance 17,976 17,893 83 18,297 18,261 36

Property 463,744 463,709 -35 384,880 384,903 -23 Management TOTAL 525,327 525,146 181 438,587 438,549 38

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5.3. PROGRAMME 3: TRANSPORT INFRASTRUCTURE Purpose The purpose of the Programme is to promote accessibility and the safe, affordable movement of people, goods and services through the delivery and maintenance of transport infrastructure that is sustainable, integrated and environmentally sensitive, and which supports and facilitates social empowerment and economic growth. Sub-programmes • Programme Support • Infrastructure Planning • Design • Construction • Maintenance Strategic objectives • To provide project planning and design services Strategic objectives, performance indicators, planned targets and actual achievements Strategic Actual Planned target Actual Deviation Comment on objectives achievement 2012/2013 achievement from planned deviations 2011/ 2012 2012/ 2013 target to actual achievement for 2012/2013 To provide 37 Designs 5 Designs 7 Designs 2 Designs Addition of 2 project planning urgent projects and design as listed below services Summary of reasons for deviations The following additional designs were completed: • Culvert on P168/1: A culvert failed catastrophically in December 2012 and had to be re- constructed. • Road D797 from Tonga to Naas: The project was prioratised for earlier implimentation due to flood damage and rapid deterioration. Programme performance indicators Performance Actual Planned target Actual Deviation Comment on indicator achievement 2012/ 2013 achievement from planned deviations 2011/ 2012 2012/ 2013 target to actual achievement for 2012/2013 Sub-programme: Infrastructure Planning Length of 5 194 5 327 5 349 22 None surfaced roads (total paved road network) at year end (km) Length of 8 358 8 530 8 492 -38 None unpaved roads (total gravel road network) at year end (km) IRPTN None 6 None None Integrated developed (no) Rapid Public Transport Networks are developed by specific municipalities

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Performance Actual Planned target Actual Deviation Comment on indicator achievement 2012/ 2013 achievement from planned deviations 2011/ 2012 2012/ 2013 target to actual achievement for 2012/2013 Sub-programme: Infrastructure Design Infrastructure 37 5 7 2 Addition of 2 designs urgent projects completed (no) Sub-programme: Construction Length of (new) None None None None No set target surfaced roads constructed (km) Length of gravel 45 43 42 -1 None roads upgraded to surfaced roads (km) Length of (new) None None None None No set target gravel roads constructed (km) Length of 65 60 63 3 On aggregate surfaced roads contractors rehabilitated performed (km) slightly above the projection Sub-programme: Maintenance Area of paved None 829 000 159 758 -669 242 Budget directed roads resealed towards (m2) emergency Length of paved 47 95 29 -66 blacktop roads resealed patching (km) Length of 385 330 185 -145 Budgetary gravel roads re- constraints gravelled (km) Area of paved 263 388 75 000 248 286 173 286 Budget directed road patched towards (black-top emergency patching) (m2) blacktop patching Length of gravel 34 718 52 114 33 216 -18 898 Budgetary road bladed constraints (frequency x km bladed, reported as km) Percentage 6% 5% 9% 4% Effect of of surfaced 267km 460km 193km rehabilitation of network in very roads good condition: (VCI) Percentage 20% 20% 23% 3% Effect of of surfaced 1 045km 1 204km 159km blacktop network in good patching condition: (VCI) Percentage 28% 37% 35% -2% None of surfaced 1 931km 1 863km -68km network in fair condition: (VCI) Percentage 32% 28% 28% 0% None of surfaced 1 448km 1 499km 51km network in poor condition: (VCI)

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Performance Actual Planned target Actual Deviation Comment on indicator achievement 2012/ 2013 achievement from planned deviations 2011/ 2012 2012/ 2013 target to actual achievement for 2012/2013 Percentage 14% 10% 5% -5% Emergency of surfaced 508km 250km -258km blacktop network in very patching and poor condition: rehabilitation (VCI) of roads contributed positively to condition of road network Percentage of 0% 0% 0% None None gravel network in very good condition Percentage 7% 4% 7% 3% Slight of gravel 331km 557km 226km improvement network in good due to condition maintenance done as well as less rainfall than anticipated in some areas Percentage of 35% 32% 36% 4% Slight gravel network 2 726km 3 032km 306km improvement in fair condition due to maintenance done as well as less rainfall than anticipated in some areas Percentage 58% 64% 57% -7% Less rainfall than of gravel 5 429km 4 809km -620km anticipated in network in poor some areas condition Percentage of 0% 0% 0% None None gravel network in very poor condition Maintenance 39% Incl. Coal: 32.5% Incl. Coal: 37% Incl. Coal: 4.5% Increase in sub-programme Excl Coal: 38.6% Excl. Coal: 37% Excl. Coal: -1.6% maintenance as a percentage activities on of Infrastructure coal roads, Budget (excl. which is part of COAL roads) PRMG budget Number of None 1 0 1 Actual output weighbridges will be reported maintained/ by DCSSL calibrated Summary of reasons for deviations • Over achievement on rehabilitation and blacktop patching The contractors for rehabilitation of surfaced roads slightly over-achieved on this indicator. A substantial part of the budget for maintenance was directed to black-top patching to avert further deterioration of strategic roads. • Budget shortfalls The roads maintenance programme saw a substantial amount of its allocation surrendered towards upgrading and rehabilitation of roads. This inevitably, hindered achievement of some performance targets for maintenance.

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Strategies to overcome areas of under performance Areas of under performance Strategies to overcome areas of under performance Resealing, re-gravelling and Measures were put in place to reduce accruals flowing into 2013/14 blading which would prevent a repeat of the problem. Adequate budget will be allocated to meet planned targets. Surfaced roads as per Visual The change in VCI related targets in fact indicate an improvement Conditional Index (VCI) of the surfaced network. The net effect of the capital investment on rehabilitation and upgrading was positive. Gravel roads as per Visual The targets were based on anticipated heavy rainfall during the year. Conditional Index (VCI) However, less rain fell hence the overall condition of the gravel network was better off at year end. Linking performance with budgets The Programme had accruals of R115,409 million from the 2011/12 financial year which resulted in a budgetary constraints for the financial year 2012/13. The spill-over effect disrupted the planned programme of works and this was in the form of delayed awards, postponement and withdrawal of some infrastructure projects. During the financial year, the Equitable Share portion of the budget was under pressure due to over commitment on capital projects. This necessitated an application from National Treasury for the reclassification of Provincial Road Maintenance Grant (PRMG) projects to include some capital projects funded from Equitable Share. The subsequent approval relieved the pressure and assisted the Programme to achieve successes against some planned outputs. Sub-programme expenditure Sub- 2012/2013 2011/2012 programme Final Actual (Over)/ under Final Actual (Over)/ under Name appropriation expenditure expenditure appropriation expenditure expenditure R’000 R’000 R’000 R’000 R’000 R’000

Programme 1,568 1,375 193 1,547 1,544 3 Support Infrastructure 58,361 58,299 62 45,911 45,909 2 Planning Design 32,218 32,202 16 37,347 37,309 38 Construction 848,350 845,799 2,551 795,325 795,325 0 Maintenance 689,894 689,776 118 890,191 890,178 13 TOTAL 1,630,391 1,627,451 2,940 1,770,321 1,770,265 56 1.4 PROGRAMME 4: TRANSPORT OPERATIONS Purpose The purpose of the Programme is to plan, regulate and facilitate the provision of integrated land transport services through co-ordination and co-operation with national planning authorities, CBOs, NGOs and the private sector in order to enhance the mobility of all communities particularly those currently without or with limited access. Sub-programmes • Programme Support • Public Transport Subsidies • Transport Safety and Compliance • Transport Systems • Infrastructure Operations Strategic objectives • To manage scholar transport • To provide integrated transport planning • To develop and maintain public transport infrastructure • To manage public transport operations

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Strategic objectives, performance indicators, planned targets and actual achievements Strategic Actual Planned target Actual Deviation Comment on objectives achievement 2012/2013 achievement from planned deviations 2011/2012 2012/2013 target to actual achievement for 2012/2013 To manage None 66 615 Learners 66 615 Learners None None scholar transport To provide None 2 •Provincial None None integrated Land Transport transport Framework planning •Provincial Freight Plan To develop 8 IRMA projects 5 IRMA projects 1 IRMA project -4 IRMA Budget and maintain projects redirected public transport to fund infrastructure contractual obligations of scholar transport To manage 11 030 Operators 11 200 Operators 10 102 1 098 actual output public transport registered registered Operators Operators depends on operations registered registered the number of To regulate 924 Operating 1 157 Operating 581 Operating -576 applications public transport Licenses Licenses Licenses Operating received and Licenses processed 1 775 1 340 1 886 546 Increased Roadblocks Roadblocks Roadblocks Roadblocks emphasis on roadblocks Summary of reasons for deviations • Delays in implementation of IRMA projects The start of Steynsdorp Culvert Bridge and Kwaggafontein Sidewalk was delayed due to budgetary constraints. This means that the projects will now be completed in the next financial year. The budget was redirected to fund contractual obligations for scholar transport services. • Dependable variables The actual outputs related to the registration of public transport operators and conversion of permits to operating licenses was dependent on the number of applications received. These were also depended on the economic climate that prevailed during the 2012/13 financial year. • Increase in the number of roadblocks Roadblocks proved to be an effective tool to raise road safety awareness and to deter impaired drivers. A clear correlation existed between roadblocks and the decrease of accidents and fatalities involving public transport vehicles. Programme performance indicators Performance Actual Planned target Actual Deviation Comment on indicator achievement 2012/2013 achievement from planned deviations 2011/2012 2012/2013 target to actual achievement for 2012/2013 Sub-programme: Public Transport Services Number of km of 35 419 957 38 444 630 28 231 474 -10 213 156 Number of Public Transport kilometres routes issued issued, Number of km of 35 280 536 36 148 260 28 231 474 -7 916 786 subsidised and Public Transport monitored are routes subsidized less due to the introduction of Number of None 36 148 260 28 231 474 -7 916 786 articulated and subsidized km bi-articulated monitored buses Sub-programme: Public Transport Contracts Number of None 101 101 None None scholar transport operators contracted

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Performance Actual Planned target Actual Deviation Comment on indicator achievement 2012/2013 achievement from planned deviations 2011/2012 2012/2013 target to actual achievement for 2012/2013 Number of None 181 808 181 808 None None scholar transport kilometres travelled Number None 561 716 155 Enhancement of of scholar scholar transport transport routes monitoring monitored Number None 66 615 66 615 None None of learners transported to school Number of 6 6 6 None None public transport operators subsidized Number of 13 678 583 16 187 15 604 Target was registered based on the Public Transport number of buses vehicles subsidised Number of 11 030 11 000 10 102 -898 Actual output public transport depends on operators (per the number of year) applications received and granted by the Board Number 8 5 1 -4 Budget of projects redirected completed to fund contractual obligations for scholar transport Number of 500 400 0 -400 Budget transport redirected operators to fund trained contractual Number of 5 5 0 -5 obligations for training courses scholar transport offered Number of 541 476 541 476 569 425 27 949 Introduction of subsidized trips articulated and monitored bi-articulated buses Number of 633 675 618 -57 Increased accidents enforcement involving public and road safety transport campaigns vehicles Number of 1 775 1 340 1 886 546 Increased roadblocks enforcement and road safety campaigns Number of 173 239 170 -69 Increased fatalities due enforcement to accidents and road safety involving public campaigns transport vehicles Number of 831 433 833 040 876 039 42 999 Introduction of subsidized trips articulated and bi-articulated buses

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Performance Actual Planned target Actual Deviation Comment on indicator achievement 2012/2013 achievement from planned deviations 2011/2012 2012/2013 target to actual achievement for 2012/2013 Number of 924 1 212 581 -631 Actual output operator depends on licenses the number of converted to applications permits received and Number of 3 458 3 372 3 175 -197 granted by the operator Board licenses issued Number of 11 200 0 -200 operator licenses withdrawn Number of IRPTN None 6 0 -6 Integrated developed Rapid Public Transport Networks are developed by specific municipalities Number of 149 149 154 5 5 More routes subsidized routes were added monitored due to increase in demand Number of 54 339 802 77 488 959 57 650 344 -19 838 615 Reconfiguration Public Transport of routes Passengers (per year) Number of 51 608 170 71 818 494 51 170 721 -20 647 773 Reconfiguration Public Transport of routes Passengers Subsidized Number of 13 678 10 000 16 187 6 187 Actual output registered depends on public transport the number of vehicles applications received and granted by the Board Number of 574 574 564 -10 Introduction of registered bi-articulated Public Transport buses vehicles subsidized Number of 149 149 154 5 5 More routes Public Transport were added Routes due to increase Operated in demand Number of 149 149 154 5 5 More routes Public Transport were added routes subsidized due to increase in demand Number of 35 419 957 38 444 630 28 121 777 -10 322 853 Introduction of kilometres of articulated and Public Transport bi-articulated routes operated buses Number of 35 280 536 36 148 260 28 121 777 -8 026 483 Introduction of Kilometres of articulated and Public Transport bi-articulated routes subsidized buses Amount of R 417, 147, 401 R436, 703, 303.32 R439, 003, 000 None Target was set public transport before budget subsidy paid was allocated. Final budget as per AFS was R439, 003, 000

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Performance Actual Planned target Actual Deviation Comment on indicator achievement 2012/2013 achievement from planned deviations 2011/2012 2012/2013 target to actual achievement for 2012/2013 Number of 35 419 957 38 729 665 28 121 777 -8 607 888 Introduction of passenger articulated and kilometres of bi-articulated public transport buses routes operated Number of 35 419 957 36 433 295 28 231 474 -7 916 786 Introduction of passenger articulated and kilometres of bi-articulated public transport buses routes subsidized Subsidy per R 7.74 R 9.66 R 7.71 R1.95 Bi-articulated passenger buses transported more passengers Subsidy per R 58, 324.81 R 44,192. 92 R 64, 863. 32 R 20, 670.40 Introduction of vehicle articulated and bi-articulated buses Number 35 419 956.6 273 124 131 28 231 474 -244 892 657 Target of vehicles overstated kilometres subsidized Summary of reasons for deviations

• Introduction of articulated and bi-articulated buses The introduction of articulated and bi-articulated buses significantly reduced the number of buses on Mpumalanga roads. As a result, the number of kilometres covered by subsidized bus operators decreased. Furthermore, the amount of subsidy per vehicle increased whilst the subsidy per passenger decreased. These high-capacity buses were used in high frequency core routes thus improving the provision of safe and reliable public transportation. • Budgetary Constraints The spill-over effect of the accruals resulted in budget shortfalls for training of public transport operators and construction of IRMA projects. • Overstated targets Baseline information was not used during the setting of some targets. Strategies to overcome areas of under performance Areas of under performance Strategies to overcome areas of under performance Construction of IRMA projects Improve overall financial management in order to minimize budget overruns. Overstated targets Use baseline information to set feasible targets and develop data definition to improve understanding performance indicators. Linking performance with budgets The Programme had accruals of R69,498 million from the 2011/12 financial year which resulted in a budgetary constraints for the financial year 2012/13. As a result, the Programme could not implement all its planned infrastructure projects and conduct the planned training for public transport operators. Nevertheless, the Programme managed to achieve most of its planned outputs with the limited available resources. Sub-programme expenditure Sub- 2012/2013 2011/2012 programme Final Actual (Over)/ under Final Actual (Over)/ under name appropriation expenditure expenditure appropriation expenditure expenditure R’000 R’000 R’000 R’000 R’000 R’000

Programme 1,509 1,497 12 1,560 1,560 0 Support

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Sub- 2012/2013 2011/2012 programme Final Actual (Over)/ under Final Actual (Over)/ under name appropriation expenditure expenditure appropriation expenditure expenditure R’000 R’000 R’000 R’000 R’000 R’000

Public 927,340 927,196 144 804,250 801,562 2,688 Transport Subsidies Transport 22,096 21,972 124 26.925 26,924 1 Safety and Compliance Transport 17,485 17,461 24 12,592 12,592 0 Systems Infrastructure 19,931 19,300 631 24,840 22,532 2,308 Operation TOTAL 988,361 987,426 935 870,167 865,170 4,997 1.5 PROGRAMME 5: COMMUNITY BASED PROGRAMME Purpose The purpose of the Programme 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 co-ordination of the Expanded Public Works Programme. Sub-programmes • Programme support • Community development • Innovation and empowerment • EPWP coordination and monitoring Strategic objectives • To coordinate the successful implementation of the EPWP 2 • To facilitate and implement the Enterprise Development Programme • To facilitate and implement the National Youth Services Strategic objectives, performance indicators, planned targets and actual achievements Strategic Actual Planned target Actual Deviation Comment on objectives achievement 2012/2013 achievement from planned deviations 2011/2012 2012/2013 target to actual achievement for 2012/2013 To coordinate 45 990 Job 59 630 Job 85 024 Job 25 394 Job Increased the successful opportunities opportunities opportunities opportunities co-ordination implementation and Improved of the EPWP 2 reporting To facilitate 40 Emerging 40 Emerging 40 Emerging None None and implement Contractors Contractors Contractors the Enterprise Development Programme To facilitate and 500 Youth 600 Youth 600 Youth None None implement the enrolled enrolled enrolled National Youth Services Summary of reasons for deviations • Over-achievement - High level support yielded significantly higher performance in the fourth quarter.

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Programme performance indicators Performance Actual Planned target Actual Deviation Comment on indicator achievement 2012/2013 achievement from planned deviations 2011/2012 2012/2013 target to actual achievement for 2012/2013 Number 57 027 59 630 85 024 25 394 Increased of people co-ordination employed and Improved Number of 19 357 18 249 25 846 7 598 reporting employment days created Number of jobs 57 027 59 630 85 024 25 394 created Number of 33 076 23 852 45 063 21 211 youths (16 - 25) employed Number 34 786 32 796 45 063 12 267 of women employed Number of 48 1 192 365 -827 Targeted PLWD group already receiving social grants Number of 9 080 4 281 4 251 -30 None people trained Summary of reasons for deviations • Over-achievement - High level support yielded significantly higher performance in the fourth quarter. • Under-achievement - People with disability are already receiving social grants and therefore are not eligible for employment. - There is no guiding document from national on the work that must be done by people with disability. Strategies to overcome areas of under performance Areas of under performance Strategies to overcome areas of under performance Appointment of people living with Coordination with the Disability Desks to encourage participation in disabilities EPWP across all Public Bodies. Under-reporting by some public •Coordination of Public Bodies to appoint dedicated EPWP Champions bodies and data captures to enhance registration and reporting of projects for creating jobs. •Coordination of Public Bodies to take advantage of the new IRS which allows for reporting continuously to report progress weekly, monthly and consolidated quarterly. Linking performance with budgets The Programme had accruals of R4,660 million from the 2011/12 financial year which resulted in budgetary constraints for the financial year 2012/13. Notwithstanding this, Mpumalanga achieved most of its job creation targets. Sub-programme expenditure Sub- 2012/2013 2011/2012 programme Final Actual (Over)/ under Final Actual (Over)/ under name appropriation expenditure expenditure appropriation expenditure expenditure R’000 R’000 R’000 R’000 R’000 R’000 Programme 1,407 1,320 87 1,286 1,286 0 Support Community 10,164 10,164 0 35,563 35,552 11 Development Innovation and 18,735 18,895 (160) 11,838 11,798 40 Empowerment EPWP 8,825 8,726 99 11,168 11,119 49 Coordination and Monitoring TOTAL 39,131 39,105 26 59,855 59,755 100 31

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6. SUMMARY OF FINANCIAL INFORMATION 6.1. Departmental receipts Departmental 2012/2013 2011/2012 receipts Estimate Actual (Over)/ under Estimate Actual (Over)/ under R’000 amount collection R’000 amount collection collected R’000 collected R’000 R’000 R’000 Sale of goods 25,895 18,860 7,035 21,675 14,055 7,620 and services other than capital assets Interest, 16,001 1,948 14,053 15,000 1,978 13,022 dividends and rent on land Sale of capital 6,225 934 5,291 9,000 2,615 6,385 assets Financial 125 4,106 (3,981) 165 3,582 (3,417) transactions in assets and liabilities TOTAL 48,246 25, 848 22,398 45,840 22,230 23,610 The Department had projected to collect R48,246 during the 2012/2013 financial year and managed to collect R 25,848 which resulted in an under collection of R 22,398. The projection for revenue collection was based on the Medium Term Expenditure Framework period which was done before the transfer of Traffic Management. The Department has four districts and head office where revenue generation activities take place. The major sources of revenue consist of the operating licences for taxis, rental of capital assets and impound fees for illegally operating a public transport vehicle. Reasons for under achievement on revenue collection • There are no Transport Inspectors at Bohlabela district office to conduct compliance operations for public transport operators. Lack of funds for Inspectors to do operations after hours and on weekends when there is high risk of non compliance by public. • Reconciliation of transport fines, operating licence fees and taxi operator registration fees were not done on a regular basis due to lack of access to Operating License Administration System (OLAS). Department to use beneficiary code to re-direct all revenue collected for house rental. • Board of Survey appointed in the third quarter and this resulted in the Department not being able to conduct auctions for the first and second quarters. No proper communication between Revenue and Assets Management with regard to the sale of obsolete, redundant and old furniture. • Safekeeping of records of scrap that cannot be used again to be sold at the scrap yards. • Occupants without lease agreements make it difficult for the Department to demand payments and no proper reconciliation done on lease of properties, especially payment by private occupants. • The collection will increase once the Department completes the revamping and maintenance for guest houses at Pilgrims Rest.

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6.2. Programme expenditure Programme 2012/2013 2011/2012 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 344,271 343, 954 317 452,659 452,588 74 Public Works 525,327 525,146 181 438,587 438,549 38 Transport 1,630,391 1,627,451 2,940 1,767,222 1,767,456 54 Infrastructure Transport 988,361 987,426 935 873,266 868,267 4,999 Operations Community 39,131 39,105 26 59,855 59,759 100 Based Programmes TOTAL 3,527,481 3,523,082 4,399 3,593,209 3,587,947 5,262 Reasons for under expenditure and its impact on service delivery There were no significant variances. Reasons for virements Details for the virements can be found under 1.5.1 of part E: Annual Financial Statements.

6.3. Conditional grants and earmarked funds received The table below describes each of the conditional grants and earmarked funds received by the Department.

Grant Provincial Roads Maintenance Grant Department who transferred the grant National Treasury Purpose of the grant To supplement provincial roads investments and support preventative, routine and emergency, maintenance on provincial road networks. Ensure provinces implement and maintain road asset management systems. Promote the use of labour- intensive methods in road maintenance. Repair roads and bridges damaged by floods. Expected outputs of the grant Improvement of the Provincial roads infrastructure Actual outputs achieved Improvement of the Provincial roads infrastructure Amount per amended DORA (R’000) R 1,240,694 Amount received (R’000) R 1,240,694 Reasons if amount as per DORA was not received Not applicable Amount spent by the Department (R’000) R1,240,694 Reasons for the funds unspent by the entity Not applicable Monitoring mechanism by the receiving Department Monthly monitoring contract meeting and physical monitoring

Grant Public Transport Operations Grant Department who transferred the grant National Treasury Purpose of the grant To provide supplementary funding towards public transport services Expected outputs of the grant To provide access to transport facilities for the citizens of the Province Actual outputs achieved Provision of access to transport facilities for the citizens of Mpumalanga Province Amount per amended DORA (R’000) R439,003 Amount received (R’000) R439,003 Reasons if amount as per DORA was not received Not applicable Amount spent by the Department (R’000) R439,003 Reasons for the funds unspent by the entity Not applicable Monitoring mechanism by the receiving Department Monthly monitoring contract meeting and physical monitoring

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Grant Devolution of Property Rate Funds Grant Department who transferred the grant National Treasury Purpose of the grant To facilitate the transfer of the property rates expenditure Expected outputs of the grant Payment of Property Rates and Taxes Actual outputs achieved Payment of Property Rates and Taxes Amount per amended DORA (R’000) R 76,870 Amount received (R’000) R 76,870 Reasons if amount as per DORA was not received Not applicable Amount spent by the Department (R’000) R 76,870 Reasons for the funds unspent by the entity Not applicable Monitoring mechanism by the receiving Department Invoices received from Municipalities are verified against the Asset Register and Valuation Roll. Reporting to National Public Works is done on a monthly and quarterly basis

Grant EPWP Incentive Grant Department who transferred the grant National Treasury Purpose of the grant Performance based grant for job creation Expected outputs of the grant EPWP Incentive Grant Actual outputs achieved EPWP Incentive Grant Amount per amended DORA (R’000) R16,617 Amount received (R’000) R16,617 Reasons if amount as per DORA was not received Not applicable Amount spent by the Department (R’000) R16,617 Reasons for the funds unspent by the entity Not applicable Monitoring mechanism by the receiving Department Monthly monitoring contract meeting and physical monitoring done. Reporting done according to prescribed template from DORA 6.4. Capital investment, maintenance and asset management plan The following projects were completed in the 2012/13 financial year: Project Name Scope of Work Targeted Completion Actual Completion Reasons for Date Date Variances Department of Health 1. Embhuleni Alterations and 15/03/2012 18/04/2012 Defects were Hospital extension to identified in the mortuary preparation for the final completion which the contractor had to rectify 2. Rob Ferreira Construction of 11/05/2010 03/05/2012 Project was delayed Hospital Phase a new trauma due to legal dispute 4B building with an between the administration block contractor and IDT. and a helipad on EOT’s were granted top 3. Rob Ferreira Upgrading 30/09/2011 15/05/2012 Defects were Hospital Phase of electrical identified in the 4C reticulation, Internal preparation for the Roads, storm water, final completion sewer, roofs, gutters, which the contractor mechanical works, had to rectify landscaping and demolishing of a dilapidated double storey building 4. Tintswalo Construction of 25/03/2012 16/05/2012 Practical completion Hospital mortuary delayed due to electrical connection by Eskom

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Project Name Scope of Work Targeted Completion Actual Completion Reasons for Date Date Variances 5. Bongani Hospital Construction of 40 10/06/2011 22/05/2012 The initial contract Bed MDR-TB wards was terminated hence a delay was caused during the reappointment of a new contractor 6. Delmas Hospital Construction of 15/03/2012 29/05/2012 Defects were mortuary identified in the preparation for the practical completion which the contractor had to rectify 7. Carolina Alterations and 10/04/2012 30/05/2012 Defects identified Hospital extensions to the in the preparation mortuary for the practical completion which the contractor had to rectify 8. Lydenburg Construction of 15/03/2012 31/05/2012 Defects were Hospital mortuary identified in the preparation for the practical completion which the contractor had to rectify 9. KwaMhlanga Alterations and 15/03/2012 01/06/2012 Project delayed Hospital extensions to the due to slow progress mortuary of contractor. The contractor was delayed as the facility was operational when the work had to be done 10. Perdekop Major renovation of 09/06/2012 15/06/2012 Project completed Community community health on time Health Centre centre 11. Mpumalanga Construction of 23/03/2012 18/06/2012 Project delayed due Nursing College palisade fencing to slow progress of contractor. An EOT was applied for and approved 12. Moloto Construction of 16/12/2011 19/06/2012 Delay as a result of Emergency emergency medical site demarcation Medical Service service station problems Station 13. Themba Hospital Construction of 07/05/2012 26/07/2012 DoH requested clinical engineering additional work due workshop and to savings on the general wards original contract 14. May flower Construction of 27/05/2012 03/08/2012 Project delayed Community accommodation due to late Health Centre units payments

15. Embhuleni Construction of 20/02/2012 29/08/2012 Project delayed due Hospital palisade fencing to late payments 16. Rob Ferreira Construction of new 31/08/2012 31/08/2012 Defects were Hospital Phase 4 medical gas plant identified in the and renovations to preparation for the the existing medical practical completion gas plant which the contractor had to rectify 17. Mthimba Clinic Construction of 2X2 26/05/2012 07/09/2012 Project delayed accommodation due to late units payments 18. M’Africa Clinic Construction of 2X2 26/05/2012 11/09/2012 Project delayed accommodation due to late units payments

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Project Name Scope of Work Targeted Completion Actual Completion Reasons for Date Date Variances 19. Swallowsnest Construction of 2x2 27/05/2012 5/10//2012 Delays due to late Clinic accommodation payments units 20. Themba Hospital Renovation and 03/10/2011 16/10/2012 Project delayed upgrading of due to late delivery Children’s ward, ICU of specialised and trauma unit / equipment casualty 21. Shongwe Stabilisation of 31/07/2012 19/10/2012 EOT was granted to Hospital wards, general the contractor for renovations and weather claims maintenances works 22. Tekwane Construction 17/01/2012 31/10/2012 Project delayed due Community of community to poor workmanship Health Centre Health centre which resulted and 2x2 bedroom in termination accommodation of contract and units appointment of a new contractor 23. Belfast Hospital Construction of 30/05/2012 16/11/2012 EOT was granted to mortuary the contractor for weather claims 24. Lebogang CHC Major renovations 15/06/2012 30/11/2012 EOT was granted to of community the contractor for health centre weather claims 25. Hluvukani Construction 03/02/2012 30/11/2012 Practical completion Community of Community delayed due to Health Centre Health Centre electrical connection and 2x2 bedroom by Eskom accommodation units 26. Ermelo Hospital Upgrading of sewer 28/09/2012 12/12/2012 EOT was granted to reticulation the contractor for weather claims 27. Nhlazatshe Renovation of the 16/11/2012 23/01/2013 This is a National Clinic clinic project which was delayed to the change in the scope of work 28. Kroomdraai Renovation of the 16/11/2012 15/02/2013 This is a National Clinic clinic project which was delayed to the change in the scope of work 29. Mooiplaas Clinic Renovation of the 16/11/2012 20/02/2013 This is a National clinic project which was delayed to the change in the scope of work 30. Eerstehoek Renovation of the 16/11/2012 06/03/2013 This is a National Clinic clinic project which was delayed to the change in the scope of work Department of Social Development 1. Ka-Maqhekeza Construction of 10 31/08/2011 03/04/2012 Project delayed due Offices branch offices to late payments and Eskom connection 2. Carolina Offices Construction of 16 31/08/2011 31/10/2012 Project delayed due branch offices to late payments

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Project Name Scope of Work Targeted Completion Actual Completion Reasons for Date Date Variances 3. Tekwane Offices Construction of 20 10/02/2013 26/03/2013 Project delayed due branch offices to poor workmanship which resulted in termination of contract and appointment of a new contractor Department of Culture, Sport and Recreation 1. Provincial Construction of an 27/02/2012 29/06/2012 Delays due Archive Building archive building to stoppages resulting from the unavailability of budget 2. Ermelo Regional Construction of a 28/08/2012 10/09/2012 EOT was approved Library new library on the basis that the project was delayed due to weather 3. Middle-burg Construction 11/05/2011 10/10/2012 Project delayed due library of a library and to the change in renovations design to address the high water table 4. Masoyi library Construction of a 10/05/2012 24/10/2012 EOT was approved new library on the basis that the project was delayed due to Eskom connection 5. Shatale Library Construction of a 31/08/2012 31/11/2012 Project delayed new library due to slow progress of the contractor. Penalties were imposed Department Of Education 1. Mzimba Completion of 28/03/2012 01/04/2012 Project delayed due Secondary construction work to late payment School 2. Mhlangana Demolition and 30/03/2011 04/03/2013 Project not Secondary construction of 14 completed on School classrooms time due to poor workmanship 3. Pugishe Primary Demolish and 30/09/2011 16/05/2012 Due to poor School construct 3 performance classrooms the contract was terminated 4. Lekholane Demolishing of 03/05/2012 29/05/2012 Project delayed due Primary School 15 Classrooms to late payment and Admin block. Construction of 15 Classrooms, Admin block, 20 toilets, Computer Centre and Library 5. Green-valley Construction of 4/03/2011 07/06/2012 Project delayed due Primary School Grade R, 4 Toilets to contractor not co- and fencing operating, warning letters were issued 6. Pelonolo Special Construct 4 19/02/2011 12/06/2012 Project delayed due School classrooms, 2 to contract being storerooms, School terminated and Hall, 5 Toilets, penalties imposed 5 workshops, kitchen, dining hall, staffroom, 3 offices, and 2 additional Admin rooms and a sickroom

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Project Name Scope of Work Targeted Completion Actual Completion Reasons for Date Date Variances 7. Mantjedi Special Construction of 19/05/2011 12/06/2012 Project delayed due School 6 classrooms, 2 to contract being stores, S/h, 10 terminated and Toilets, 3 workshops, penalties imposed Kitchen, dining hall, staffroom, 3 offices, 3 additional admin rooms and sickroom. 8. Ekhiyeni Primary Storm damage- 03/06/2012 22/06/2012 Project delayed due School Leaking Roof to late payment 9. Lekete High Construction of 09/11/2011 19/06/2012 Project delayed due School 1 workshop and to contractors poor refurbishment performance 10. Enkundleni Demolition and 03/06/2012 22/06/2012 Project completed Primary School construction of 3 on time classrooms 11. Mlilo Combined Mud 24/08/2011 19/07/2012 Project delayed due School unconventional to to late payment conventional 12. KI Thwala Demolition and 08/06/2012 20/07/2012 Project delayed due Secondary construction of 8 to late payment School classrooms 13. Madile Primary Repair storm 06/09/2012 12/07/2012 Project completed School damage ahead of schedule 14. Ximoyi Khosa Repair storm 16/08/2012 12/07/2012 Project completed School damage ahead of schedule 15. Mogawane Repair storm 16/08/2012 12/07/2012 Project completed Primary School damage ahead of schedule 16. Khanyisile Repair storm 21/08/2012 20/07/2012 Project completed Primary School damage ahead of schedule 17. SS Ripinga Repair storm 29/09/2012 17/07/2012 Project completed School damage ahead of schedule 18. Qhubulwazi Demolition and 30/09/2011 06/08/2012 Project delayed due Combined construction of 12 to late payment (IDT) School classrooms 19. Nyalungu Repair storm 09/10/2012 17/12/2012 Project was delayed Primary School damage due to late payment 20. LM Kganane Repair storm 14/08/2012 19/07/2012 Project completed Secondary damage ahead of schedule School 21. Makuke Repair storm 14/08/2012 19/07/2012 Project completed Secondary damage ahead of schedule School 22. Phaphama Reconstruction of 9 11/08/2012 24/07/2012 Project completed Primary School classrooms ahead of schedule 23. Thwasani Maintenance of 25 11/08/2012 25/07/2013 Project completed (Primary School classrooms ahead of schedule 24. ML Nkuna Repair storm 11/08/2012 25/07/2012 Project completed Secondary) damage ahead of schedule School 25. NP Mathabela Repair storm 30/08/2012 26/07/2012 Project completed Secondary damage ahead of schedule School 26. Lekete High Repair storm 10/08/2012 26/07/2012 Project completed School damage ahead of schedule 27. Timbavati Repair storm 11/08/2012 26/07/2012 Project completed Primary School damage ahead of schedule 28. NJ Mahlangu Repair storm 09/08/2012 31/07/2012 Project ahead of Secondary damage schedule School 29. Mdluli Repair storm 12/09/2012 03/08/2012 Project completed Secondary damage ahead of schedule School 30. Mbazima Repair storm 29/09/2012 17/07/2012 Project completed Primary School damage ahead of schedule

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Project Name Scope of Work Targeted Completion Actual Completion Reasons for Date Date Variances 31. Mitikinya Primary Repair storm 13/08/2012 06/08/2012 Project completed School damage ahead of schedule 32. Mthimba Repair storm 13/08/2012 13/08/2012 Project completed Combined damage on time School 33. Rindzani Primary Repair storm 16/08/2012 07/08/2012 Project completed School damage ahead of schedule 34. Matikwane Repair storm 10/08/2012 07/08/2012 Project completed Primary School damage ahead of schedule 35. Munyamane Repair storm 30/08/2012 13/08/2012 Project completed Primary School damage ahead of schedule 36. Gutjwa Primary Repair storm 13/08/2012 14/10/2012 Project behind School damage schedule due to late payment 37. Sifunindlela Repair storm 13/08/2012 13/08/2012 Project completed Primary School damage on time 38. Umpopoli Repair storm 13/08/2012 13/08/2012 Project completed Primary School damage on time 39. Celani Primary Repair storm 13/08/2012 13/08/2012 Project completed School damage on time 40. Vulamasango Demolition and 11/08/2012 14/08/2012 Project completed Primary School construction of 4 on time classrooms 41. Phumalanga Repair storm 10/05/2012 10/08/2012 Project completed Primary School damage on time 42. Khaliphani Repair storm 14/08/2012 14/08/2012 Project completed Primary School damage on time 43. Jabulani Primary Repair storm 14/08/2012 14/08/2012 Project completed School damage on time 44. Nxalanti Primary Repair storm 13/09/2012 15/08/2012 Project completed School damage ahead of time 45. Mahashe Repair storm 01/11/2012 15/08/2012 Project completed Secondary damage ahead of time school 46. Freddy Sithole Repair storm 12/10/2012 16/08/2012 Project completed Secondary damage ahead of time School 47. Shalamuka Repair storm 12/09/2012 24/08/2012 Project completed Primary School damage ahead of schedule 48. Langa Demolish and 28/12/2012 01/08/2012 Project completed Secondary construction of 16 ahead of schedule School classrooms 49. Magwagwaza Repair storm 11/10/2012 30/08/2012 Project completed Primary School damage ahead of schedule 50. Kgwaditiba Repair storm 17/08/2012 31/07/2012 Project completed Primary School damage ahead of schedule 51. Glory Hill Primary Repair storm 13/09/2012 31/08/2012 Project completed School damage ahead of schedule 52. Mugidi Primary Repair storm 12/09/2012 03/09/2012 Project completed School damage ahead of schedule 53. Soshangane Construction of 12/09/2009 04/09/2012 Project was Secondary 7 Classrooms, delayed due to School Computer Centre , E.O.T and V.O library, laboratory, for change of kitchen, Rails and designs (Timber Ramps, Home to steel trusses for Economics centre, school hall), late Sports Ground, payment and poor Parking, Admin, hall, performance 24 toilets, Water supply, Electrical, Renovation of 15 Classrooms, 1Admin block

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Project Name Scope of Work Targeted Completion Actual Completion Reasons for Date Date Variances 54. Mgcobaneni Repair storm 10/08/2012 05/09/2012 Project completed Primary School damage behind schedule due to late payment 55. Enkokokweni Repair storm 14/08/2012 14/08/2012 None Primary School damage 56. Ramoshidi High Construction 16/10/2011 24/01/2013 Project delayed School one technical due to a workshop and the termination of refurbishment of contract three technical workshops. 57. Mosipa Construction of 7 31/01/2013 11/09/2012 None Secondary classrooms and School renovation of 1 admin block 58. Vulindlela Repair storm 10/10/12 10/10/2012 None School damage 59. Hlalakahle Repair storm 12/09/2012 12/10/2012 Project was behind Primary School damage schedule due to late payment 60. Sibambayane Repair storm 12/10/2012 15/10/2012 None Primary School damage 61. Nelspruit Primary Repair storm 17/10/2012 16/10/2012 None School damage 62. Barberton Repair storm 30/10/2012 30/10/2012 None Combined damage School 63. Khutsalani Repair storm 09/10/2012 22/10/2012 Project completion Combined damage delayed due to late School payment 64. Mlilo Primary Repair storm 22/10/2012 22/10/2012 None School damage 65. Vulamehlo Repair storm 25/10/24 25/10/2012 None Primary School damage 66. Glenthorpe Repair storm 30/10/2012 30/10/2012 None Primary School damage 67. Bambanani Repair storm 13/09/2012 19/10/2012 Project completion Combined damage delayed due to late School payment 68. Salubindza Repair storm 13/10/2012 05/11/2012 Project completed Primary School damage behind schedule due to late payments 69. Sethlare Primary Repair storm 12/09/2012 01/11/2012 Project completed School damage behind schedule due to late payments 70. Ndabeni Primary Construction of an 13/11/2012 13/11/2012 None School Admin Block 71. Inkunzi Primary Repair storm 12/11/2012 23/11/2012 None Schools damage 72. Paulos Ngobeni Repair storm 17/12/2012 30/11/2012 None School damage 73. Mthembeni Repair storm 12/09/2012 10/12/2012 Project completion Secondary damage delayed due to late School payments 74. Khulamlambo Repair storm 09/08/2012 10/12/2012 Project completion Primary School damage delayed due to late payments 75. Njanji Primary Repair storm 11/08/2012 07/08/2012 None School damage 76. Tjhidelani 20 Classrooms 17/01/2013 14/01/2013 None Primary School

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Project Name Scope of Work Targeted Completion Actual Completion Reasons for Date Date Variances 77. Mandlakababa 2 Classrooms 11/02/2013 07/02/2013 Contract was Primary School terminated due to poor performance. Revised contract completed on time 78. Xantia 8 Classrooms and 31/01/2013 31/01/2013 None Secondary an Admin centre School 79. Sidlemu Primary 6 Classrooms, 11/09/2008 05/02/2013 Project was School Computer Centre; delayed due to EOT library, kitchen, Rails and VO for change and Ramps, Admin, of designs (Timber School Hall,18 Toilets to steel trusses for school hall) 80. Ndedema Unconventional 31/01/2013 05/02/2013 None Primary School School 81. Arnot Colliery Unconventional/ 04/12/2012 05/02/2013 Project behind Primary School Conventional schedule due to late (Phase 1) School payment 82. Rob Ferreira Upgrading and 27/2/2013 15/02/2013 None Hoerskool renovations 83. Moduping Singita Project 10/12/2012 25/02/2013 None Primary School 84. Sizile / Delpark Unconventional/ 28/02/2013 28/02/2013 None Primary School Conventional School 85. Elukhanyisweni Construction of 1 08/08/2012 18/03/2013 Project completed Technical Technical workshop behind schedule School and refurbishment due to poor of 3 workshops performance 86. Moniwa Primary Construction of 31/03/2013 20/03/ 2013 None School Grade R facility Transport Infrastructure 1. D1869 and Upgrade from 20/07/2012 30/11/2012 Extension of time due D1870 between gravel to surfaced to additional works Marloth road Park and Komatipoort (15.5 km) 2. D481 between Upgrade from 31/05/2011 07/03/2013 Extension of time due Mooiplaas gravel to surfaced to rainfall delay and and Ekulindeni road late approval of VO (9.6km)(EPWP) 3. Goromane Upgrade from 16/05/2012 26/10/2012 Extension of time due Bridge over gravel to surfaced to additional works Sabie River road and quantities Including Access Roads (2km) Transport Operations 1. Ntombe 2 Foot- Construction of 31/03/2012 05/03/2013 Revised completion bridge footbridge date due to natural causes The following projects could not be completed in the 2012/13 financial year: Project Name Scope of Work Targeted Revised Completion Reasons for the Completion Date Date Delays Department of Health 1. Themba Renovations 07/05/2012 31/03/2013 Contractor behind Hospital and upgrading schedule of Ophthalmic, orthopaedic, female surgical, male surgical, female and male medical

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Project Name Scope of Work Targeted Revised Completion Reasons for the Completion Date Date Delays 2. Ermelo Hospital Renovations of 30/03/2013 04/04/2013 Late delivery of administration air-conditioning equipment 3. Rob Ferreira Phase 4D: 31/03/2012 31/07/2013 Contractor has Hospital Upgrading of abandoned site due Wards 9/10,11 and non-payment. Works paediatric ward, currently suspended Rehabilitation centre 4. Mapula neng Renovations and 11/09/2011 31/05/2013 Unavailability of the Hospital additions to existing specialist equipment TB Ward. (Helipad lights) which Construction have yet to be of Storage and ordered Helipad 5. Piet Retief Construction of new 21/11/2012 30/06/2013 Contractor behind Hospital M2 mortuary schedule. An EOT was granted for weather 6. Mashishing Construction 03/02/2012 31/05/2013 Contractor behind CHC of Community schedule due to Health Centre poor workmanship and 2x2 bedroom accommodation units 7. Belfast Hospital Construction of new 17/01/2012 30/06/2013 Contract was OPD, Casualty and terminated due to Admissions. poor performance Upgrading of and new contractor Existing Theatre appointed and site handed over on the 13th March 2013 8. Mmamet hlake Phase 1: Concrete 28/02/2013 29/04/2013 Contractor behind Hospital palisade fencing schedule due to poor workmanship 9. Wakker stroom Construction of new 21/05/2011 30/06/2013 Contractor behind CHC: community Health schedule due to Centre poor performance. Termination of contract recommended 10. Evander Upgrading 02/10/2012 31/05/2013 Sectional hand- Hospital Administration and over done, but Rehabilitation Blocks delay in the delivery (New Roof) of specialised equipment 11. Green-side Construction of 17/09/2012 21/05/2013 This is an IDT project CHC community health and the delays centre are due to late payments 12. Twee fontein Construction of 17/09/2012 31/07/2013 This is an IDT project CHC community health and the delays centre are due to late payments 13. Phola Park Construction of 06/10/2012 22/05/2013 This is an IDT project CHC community health and the delays centre are due to late payments 14. Sinqobile CHC Construction of 06/10/2012 31/08/2013 Delays in supplying community health materials by the centre CRDP co-operatives 15. Mbhejeka Construction of 06/10/2012 31/05/2013 This is an IDT project CHC community health and the delays centre are due to late payments

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Project Name Scope of Work Targeted Revised Completion Reasons for the Completion Date Date Delays Department of Social Development 1. Dagga kraal Construction of 10/01/2012 31/08/2013 EOT granted to branch offices contractor due to Offices none delivery of materials. 2. Gert Sibande Construction of 40 31/03/2012 24/05/2013 Project behind Offices Offices schedule 3. Delmas DSD Construction of 02/02/2012 31/07/2013 Project delayed offices to termination of contract and appointment of new contractor Department of Culture, Sport and Recreation 1. Vaalbank Construction of new 23/06/2012 31/05/2013 Contract was (Libangeni) library terminated and Library a new contract entered into with a new contractor 2. Driefontein Construction of new 02/07/2011 31/05/2013 The project was Library library terminated at 75%. The appointed QS on the project were terminated due to poor performance. New QS and contractor to be appointed 3. Perdekop Construction of new 11/06/2012 31/05/2013 Project delayed Library library due to slow progress of the contractor. A cession was approved and penalties imposed 4. Masoyi library Construction of a 10/05/2012 24/10/2012 EOT was approved new library on the basis that the project was delayed due to Eskom connection 5. Shatale Library Construction of a 31/08/2012 31/11/2012 Project delayed new library due to slow progress of the contractor. Penalties were imposed Department of Economic Development, Environment and Tourism 1. Donker hoek Construction of 30/10/2012 31/08/2013 Late delivery of the Farm water bottling water water tank (only manufacturer in the country) Department of Education 1. Alex Benjamin Demolish 12 06/12/2012 19/04/2013 Project was not (Phase 1) asbestos Classrooms complete due and Construction to non-payment of 12 Classrooms; resulting in the 14 toilets; a kitchen, contractor halting fencing and work cupboards. 2. Holde sheim 3 Classrooms 15/03/2013 02/04/2013 Project was delayed Primary School by inclement weather 3. Mahu bahuba Construction of 14 15/03/2013 30/04/2013 Project is behind Primary School Toilets schedule due to cash flow constraints

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Project Name Scope of Work Targeted Revised Completion Reasons for the Completion Date Date Delays 4. Mandle sive 20 Classrooms, 05/03/2013 25/04/2013 Delayed due to Secondary 1Computer Centre; community unrest School 1 Library,1 Laboratory, 1 Kitchen, 1Rails and ramps, 1 Admin block, 20 toilets, water supply 5. Manya katane Leaking roof N/A N/A Project is on hold Primary School due to SGB decision not to accept the project 6. Nwama Leaking roof N/A N/A DoE has resolved by humana requesting DPWRT Primary School to conduct an assessment and to provide a report thereafter

7. ML Mokoena Leaking roof N/A N/A The school was Secondary repaired by SGB and School DoE to be advised to reimburse the SGB 8. Fundin jobo Leaking roof N/A N/A DoE has advised Secondary DPWRT to deploy a School contractor to site 9. Khange la/ 1 Admin block 01/04/2013 22/04/2013 The contract was MM Motoung terminated at Primary School 98% due to poor performance 10. Ikhethelo 7 classrooms; 05/08/2011 30/07/2013 All works completed Secondary Computer Centre, except upgrading of School Library; Laboratory; electricity Admin ; School Hall; 17 toilets and fencing 11. Injabulo 12 classrooms, 15/03/2013 11/04/2013 Project behind Combined Computer Centre; schedule School GrR, Library, Kitchen, Rails and ramps; 3 sports grounds, Parking area, Admin, School Hall,16 toilets; water, electricity and fencing 12. Abacus Supply of movable 31/03/2013 N/A Moveable Solutions classrooms classrooms are supplied as and when needed and required 13. Dumphries Completion of 11/08/2013 11/08/2013 The contract was Secondary Admin, Kitchen, terminated at School Toilets and 40% due to poor Classrooms performance 14. Mzilikazi Primary Completion of 23/07/2013 23/07/2013 The contract was School Admin, Kitchen, terminated at Toilets and 40% due to poor Classrooms performance 15. Shatleng Completion of 13/11/2013 13/11/2013 The contract was Primary School Admin, Kitchen, terminated at Toilets and 80% due to poor Classrooms performance 16. Rhand zekile Construction of 18 15/03/2013 30/04/2013 Project is behind Primary School Toilets schedule due to cashflow constraints 17. Maakere Construction of 14 15/03/2013 30/04/2013 Project is behind Secondary Toilets schedule due to School cashflow constraints

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Project Name Scope of Work Targeted Revised Completion Reasons for the Completion Date Date Delays 18. Nembe Nhlava Construction of 14 15/03/2013 30/04/2013 Project is behind Primary School Toilets schedule due to cashflow constraints Transport Infrastructure: Construction 1. Bethal Traffic Construction of 25/04/2012 30/09/2013 Pending approval Control Centre weighbridge of VO as required (Weighbridge) additional funding exceeds 20% of the contract amount 2. D3969 and Upgrade from 06/10/2012 30/10/2014 Pending approval for D3974 between gravel to surfaced extension of time Kildare and road Cunningmoore (Rolle - Oakley Phase 2) (11km) 3. D2976 between Upgrade from 30/06/2012 30/08/2013 The project Daantjie and gravel to surfaced completion has Mpakeni road been hindered by (9.3km) factors such as slow progress and poor workmanship 4. D2975 between Upgrade from 11/09/2012 30/04/2013 Additional work and Luphisi and gravel to surfaced pending approval Siphelanyane road of VO (14.5km) 5. D2964 between Upgrade from 07/07/2012 30/04/2013 Pending approval Diepdale and gravel to surfaced of VO as required Swaziland road additional funding border (9.2km) exceeds 20% of the (EPWP) contract amount 6. D4390, D4385 Upgrade from 02/07/2012 19/07/2013 Series of problems and D4387 gravel to surfaced resulting to between Rolle road termination of main and Oakley contractor and (17.5km)(Phase Engineer 1) 7. P53/2 between Rehabilitation of 12/12/2012 15/05/2013 Inclement weather, Leandra and coal haulage road rainfall and late Standerton payments (P90/1)(23km) 8. D1398 from Rehabilitation of 01/08/2012 31/05/2013 Strike action and D1555 (Arnot PS) coal haulage road rainfall to Hendrina (23km) 9. D914 from Rehabilitation of 11/07/2012 30/05/2013 Termination of main P127/1 - R35 coal haulage road contractor (South of Middelburg) (16km) 10. D1555 between Reseal of surfaced 31/12/2012 - Project reprioritized D1398 junction road and Arnot Colliery (1.57km) 11. D797 between Reseal of surfaced 31/12/2012 - Project reprioritized Tonga and road Naas (2km) 12. D182 from Reseal of surfaced 31/12/2012 - Project reprioritized Sasol Plant road to Secunda Boundary (9.42km) 13. D823 between Reseal of surfaced 31/12/2012 - Project reprioritised Carl Cilliers road and Secunda (8.25km) Transport Operations

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Project Name Scope of Work Targeted Revised Completion Reasons for the Completion Date Date Delays 1. Steyndorp Construction of 31/03/2013 07/06/2013 Project were Culvert Bridge culvert bridge delayed to commence in the 4th quarter (budgetary constraints) 2. Construction Construction of bus 31/12/2012 31/01/2014 The project will be of Katsibane, shelters re-advertised due Makola, to errors on the Magononong tender document and Lefiso bus discovered during shelters evaluation 3. Kwaggagontein Construction of 31/12/2012 06/06/2013 Project were Walkways walkway delayed to commence in the 4th quarter (budgetary constraints) The following are multi-year projects that are currently in progress and will be completed in the next financial year(s): Scope of Work Targeted Completion Date Department of Health 1. Ermelo Hospital Renovation of Pharmacy 30/05/2013 2. Rob Ferreira Hospital Phase 4E: Part 1: New residence building with 150 units. 31/01/2014 3. Rob Ferreira Hospital Phase 4E : Part 2: New Learning Resource Centre building 07/08/2013 4. Witbank Hospital Demolitions of existing building and construction of Neo- 13/06/2013 natal, kangaroo unit and renovation of old Hospital roof 5. KwaMhlanga Hospital Phase 3C Construction of new intensive care unit (ICU) 30/06/2013 and casualty. Renovations and additions to existing theatre block Department of Social Development 1. Delmas sub-district Construction of offices 31/07/2013 Offices Department of Culture, Sport and Recreation 1. Klarinet Library Construction of library 31/05/2013 Department of Education 1. Kgantsho Primary School 5 Classrooms 01/05/2013 2. Siphumule Primary 1 Classroom 02/05/2013 School 3. Sihlengiwe Primary 2 Classrooms 02/05/2013 School 4. Hlalisanali Primary CRDP Substitution of unsafe structures Grade R Centre 12/10/2013 School 5. Mzimhlophe Secondary CRDP Demolish and Construct 14 Classrooms, Admin, 12/10/2013 School Laboratory, Library ,Computer Centre, Kitchen 6. Mgcobaneni Primary Construction of 19 Classrooms, Grade R, Admin Block, 08/02/2014 School Laboratory and Library 7. Schulzendal Primary CRDP Substitution of unsafe structures Grade R Center 4 25/03/204 School 8. Alex Benjamin (Phase 2) Demolish 12 asbestos Classrooms and Constructing of 12 31/10/2013 Classrooms 9. Arnot Colliery Primary Construction of 9 Classrooms; Admin Block, Computer 05/10/2013 (Phase 2) Centre, Hall, Sports Ground Laboratory; Library; ,Computer Centre, School Hall, 4 Toilets 10. iLanga Primary School Construction of 19 Classrooms; Admin Block, Laboratory; 30/04/2013 Library; Computer Centre and Kitchen 11. iLanga Primary School 13 classrooms; Kitchen, Admin Block; Laboratory; Library; 28/10/2013 (Phase 2) Computer Centre; Hall; 20 Toilets; 3 Sports Grounds and Car ports 12. Lungelo Combined 5 Classrooms, Kitchen,3Toilets 31/07/2013 School 13. Berbice Primary School 5 Classrooms Kitchen, 3Toilets 31/07/2013 14. Kwashuku Secondary 2 classrooms,Fencing,4 Toilets and Kitchen 31/07/2013 School

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Scope of Work Targeted Completion Date 15. Amersfoort Primary 6 classrooms; 10 toilets; water; fencing and electricity 30/07/2013 School 16. Matikwana Primary Construction of 16 Toilets 30/04/2013 School 17. Jabulani Primary School 12 Classrooms 20/06/2012 18. Kabete Primary School 1 Classroom, 4 Toilets and fencing 10/04/2013 19. Kwakwari Primary School 1 Classroom, 4 Toilets and fencing 10/04/2013 20. Khuthalani Primary 1 Classroom, 4 Toilets and fencing 29/04/2013 School 21. Mzinti Primary School 1 Classroom, 4 Toilets and fencing 08/05/2013 22. Ekuphileni Primary 1 Classroom, 4 Toilets and fencing 06/05/2013 School 23. Imizamoyethu Primary 1 Classroom 06/05/2013 School 24. Harmony Park C School 1 Classroom, 4 Toilets and fencing 06/05/2013 25. Qalani Primary School 1 Classroom, 4 Toilets and fencing 29/04/2013 26. Qhubekani Primary 1 Classroom, 4 Toilets and fencing 29/04/2013 School 27. Seabe High School 10 Classrooms,1Computer Centre,1Library,1Laboratory, 21/02/2013 1Kitchen, Ramps and Rails,1Admin Block, 20 Toilets, Water supply 28. Frank Mghinyana Construction of 10 Classrooms, Admin Block, Library,1 12/03/2014 Secondary School Laboratory, Computer Centre and Kitchen 29. Samuel Mhlanga Construction of 19 Classrooms, Grade R, Admin, Library, 12/03/2014 Primary School 1Laboratory 30. Landulwazi Primary Leaking roof and ceiling replacement 19/06/2013 School 31. Esithembisweni Primary Leaking roof 19/06/2013 School 32. Bhekokuhle Primary Leaking roof 19/06/2013 School 33. Ekuphakameni Primary Leaking roof 19/06/2013 School 34. C.J. Nkosi Secondary Leaking roof 30/05/2013 School 35. Ntabahle Primary School Leaking roof 30/05/2013 36. Chief S.W. Nhlapho Leaking roof 30/05/2013 Secondary 37. Vulingcondo Primary Leaking roof 30/06/2013 School 38. Mbalenhle Secondary Leaking roof 30/06/2013 School 39. Sijabule Primary School Leaking roof 09/06/2013 40. Mabhoko Primary Leaking roof 09/06/2013 School 41. Vumazonke Primary Leaking roof 09/06/2013 School 42. Siyifunile Secondary Leaking roof 09/06/2013 School 43. Shobyiana Secondary Renovation of 16 classrooms; the construction of 12 12/04/2013 School classrooms; Admin Block; Library; Laboratory; Computer Centre; Home Economics; School Hall; Rails and ramps; electricity; water and 16 Toilets 44. Gedlembane Renovation of 20 classrooms; 8 classrooms; Computer 29/11/2013 Secondary School Centre; Library; Laboratory; ramps and rails,3 Home Economics; ,School Hall,10 toilets, Water supply, Admin block,18 toilets 45. Methula Secondary Computer Centre; Library; Laboratory; rails and ramps; 01/10/2013 School Admin and 18 classrooms 46. New Coronation Construction of 28 Classrooms; Admin Block; Laboratory; 27/9/2013 Secondary School Library; 40 toilets fencing and School Hall (Klarinet) IDT

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Scope of Work Targeted Completion Date 47. Ubuhle Secondary CRDP Construction of 28 Classrooms; Admin; Laboratory; 23/09/2013 School (CRDP) Library; Computer Centre; 40 toilets; fencing and School Hall 48. Nederland Primary Construction of 28 Classrooms; Admin Block; Laboratory; 05/07/2013 School (Wesselton) IDT Library; Computer Centre; 40 toilets; fencing and School Hall 49. Wolvenkop Special Construction of 6 new classrooms,4 new workshops 15/10/2013 School 50. Thanduxolo Special Construction of 6 new classrooms, 4 new workshops 06/02/2014 School 51. Tsakane Inclusive School Construction of 6 new classrooms,4 new workshops 13/02/2014 52. Acorns to Oaks 18 Classrooms, Admin Block, Laboratory, Media Centre, 30/04/2013 Computer Centre, School hall, Electricity, Fencing, Water supply and 5 toilets 53. Ramantsho Primary Construct Admin Block,2 Classrooms 30/12/2013 School 54. Amsterdam Boarding Construction of the Comprehensive Boarding School 30/11/2013 School 55. Emakhazeni Boarding Construction of the Comprehensive Boarding School 30/03/2014 School 56. Masizakhe Secondary Renovation of 39 Classrooms, 40 Toilets, Admin Block, 08/09/2013 School Electricity 57. Molapolama Renovation of 40 Classrooms,40 Toilets, Admin Block, 11/07/2013 Secondary School Electricity 58. Maraleng Secondary Renovation of 40 Classrooms,40 Toilets, Admin Block, 18/07/2013 School Phase 1 Electricity Plans to close down or down-grade any current facilities There were no plans to close down or down-grade any facilities. Progress made on the maintenance of infrastructure Public Works The Department continues to do day to day routine maintenance to the Riverside Government Complex with its limited budget. Emergency repairs and maintenance is undertaken as and when required in the respective cost centres and other 6 shared government office buildings. These buildings are Kwamhlanga, Piet Koornhof, Batho Pele, Jerry van Vuuren, Elukwatini and Anderson Street. In addition, the Department appointed term contractors for the refurbishment of Pilgrim’s Rest during the year under review. Transport Infrastructure As the Province tries to manage trade-offs between its ever-growing maintenance backlog and resource constraint, it still maintains its operations required to sustain the functionality and structural integrity of its road network. Maintenance of roads infrastructure continued throughout the 2012/13 financial year. Maintenance operations embarked upon were mainly upgrade, rehabilitation, routine and preventative maintenance. On routine maintenance, the following outputs were achieved in the 2012-13 financial year: Activity Unit Planned Actual % Achieved Patching m2 90 896 146 634 161% Culverts cleaned and replaced No 16 347 20 363 125% Clean side drains Km 9 963 9 572 96% Reshaping / grading shoulders Km 2 986 4 609 154% Replaced / install road signs No 35 277 46 617 132% Cleaning of road reserves Km 5 752 8 619 150% Road marking and studs Km 2 980 1 450 49% Replaced / install guardrails M 13 708 38 959 284% Installation of distance markers No 1 694 1 196 71% Grass cutting Km 4 087 5 835 143% Weed control Km 1 132 175 15% Grading Km 34 442 31 514 91%

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Activity Unit Planned Actual % Achieved Fencing Km 64 1 2% Installed gabions m3 12 734 70 161 551% Fire break Km 0 22 0 Developments relating to the above that are expected to impact on the Department’s current expenditure Public Works The Executive Council approved the Department’s request for client departments to pay a user charge on the government buildings that they occupy. Interactions with Provincial Treasury and the respective departments are underway in order to explore mechanisms for implementation. Transport Infrastructure There has been more pressure on the Department’s limited available capital budget as there are growing needs towards rural access development. Although the Department is in receipt of the Provincial Roads Maintenance Grant, the increasing backlog partly attributed to flood damages and maintenance of the coal haulage road network has posed a major challenge for the Department. Changes in the Asset Holdings The physical asset movement for the Department was as follows (R’000): Opening Balance R 288, 706 Adjustments R 382 Disposals (R 11, 241) Additions R 12, 893 TOTAL R 290, 740

Of the R290, 740 million the Department spent R12, 893 million to acquire the following movable additional assets (R’000): Transport Assets R 4, 648 Computer Equipment R 2, 984 Furniture and Office Equipment R 1, 196 Other machinery and Equipment R 4, 065 TOTAL R12, 893 Disposal of assets Two (2) auctions were held during the financial year: Region Month Amount Ehlanzeni South 13 December 2012 R 173, 580 Gert Sibande 19 December 2012 R 782, 210 TOTAL R 955, 790 Material losses Material losses to the value of R 0,315 million were recorded for the 2012/2013 financial year. Measures taken to ensure that the Department’s asset register remained up-to-date during the period under review All the Department’s assets were recorded in the Asset Register. Measures taken to update the register include bar coding, physical verification and reconciliation of all assets according to the Asset Management Policy. Performance asset inspections on buildings are undertaken on a monthly basis. The current state of the Department’s capital assets, for example what percentage is in good, fair or bad condition Name Good Fair Poor Computers 60% 20% 20% Furniture 60% 25% 15% Vehicles 65% 25% 10% Other Machinery and Equipments 70% 20% 10%

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Summary of maintenance expenditure The table below shows the actual expenditure incurred for maintenance related Programmes: Infrastructure 2012/2013 2011/2012 projects 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 New and 43,147 94,086 (50,939) 52,284 989,323 (937,039) replacement assets Existing 1,283,391 1,228,694 54,697 1,291,822 406,032 885,970 infrastructure assets - Upgrades and 261,901 239,903 21,998 274,914 (13,151) 288,065 additions - Rehabilitation, 606,673 581,421 25,252 541,000 (53,893) 594,893 renovations and refurbishments - Maintenance 414,817 407,370 7,447 475,908 473,076 2,832 and repairs TOTAL 1,326,538 1,322,780 3,758 1,344,106 1,395,355 51,248 Progress made in addressing the maintenance backlog during the period under review, for example, has the backlog grown or become smaller? Is the rate of progress according to plan? If not why not, and what measures were taken to keep on track Progress made in addressing the building maintenance backlog The annual budget allocated for the maintenance of buildings owned by the Department of Public Works, Roads and Transport is inadequate to make a positive impact on the maintenance backlog. The Riverside Government Complex and other shared buildings as well as the plumbing and air-conditioning system in these buildings need urgent attention before they become a health hazard. Interactions with Provincial Treasury and the respective departments are underway to explore mechanisms for implementation of user charge for occupation of buildings.

Progress made in addressing the transport infrastructure maintenance backlog Overall, the maintenance backlog is widening as there is a dire need to increase the baseline for transport infrastructure. A service provider has been appointed to develop a Maintenance Management System (MMS) which will assist the Department to determine maintenance requirements on an annual basis. Great strides have been achieved thus far with the completion of the study on the Department’s maintenance modus operandi. Solutions and best practices have been offered and series of training courses scheduled for technical teams throughout the Province in the coming financial year. The computerized MMS is complete with the completion of the user specification, functional specification, and business analysis. With the full implementation of the MMS, the department seeks to achieve more effective and efficient maintenance productivity.

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1. INTRODUCTION Commitment by the Department to maintain the highest standards of governance is fundamental to the management of public finances and resources. Users want assurance that the Department has good governance structures in place to effectively, efficiently and economically utilize the state resources, which is funded by the tax payer. 2. RISK MANAGEMENT Nature of risk management This is the identification, assessment, and prioritization of risks followed by coordinated application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. Risks can come from uncertainty in financial markets, project, legal liabilities, credit risk, accidents, natural causes and disasters. Risk management strategies to identify risks and manage the risks The strategies to manage risks include transferring the risk to another party, avoiding the risk, reducing the negative effect or probability of the risk, or even accepting some or all of the potential or actual consequences of a particular risk. Progress made in addressing risks identified The Department has put measures in place as to how best can we deal with the risks identified. On a monthly basis, all sections affected are required to provide progress report indicating how they are trying to eliminate the risk, mitigate it or just tolerate it, in terms of the evaluation of the risk identified. 3. FRAUD AND CORRUPTION The Department’s Fraud Prevention Plan (FPP) and the progress made in implementing the fraud prevention plan The FPP of the Department was developed based on the risks identified during the Risk Identification and Rating Project. The plan is aimed at creating a culture which is intolerant to fraud; detecting, preventing and investigating fraud; and taking appropriate action against fraudsters. Mechanisms in place to report fraud and corruption and how these operate.eg: Whistle blowing - The need for officials to make confidential disclosure about suspect fraud and corruption The Department will commence with the implementation of the FPP in June 2013. During the fraud awareness workshops participants are always encouraged to report fraudulent activities and they are provided with information as to how/when/where to start when blowing the whistle. How these cases are reported and what action is taken Most cases are reported through the National Anti-Corruption Hotline. The hotline administrators screen the information and send it to the relevant Provincial Premier’s Offices for investigations. 4. MINIMISING CONFLICT OF INTEREST To minimise conflict of interest within Supply Chain all practitioners sign the code of conduct for Supply Chain Management. There are four committees within the Supply Chain section, Specification Committee, Evaluation Committee, Adjudication Committee and Finance Committee, in each committee sitting all members present declare their interest on record and also sign the declaration of interest indicating whether they have interest or not. 5. CODE OF CONDUCT The Code of Conduct contains issues of personal conduct, accountability, transparency and private interests. All employees in the Department have an obligation to understand the application of the procedures contained in the Code of Conduct. This means that the employees who breach the Code of conduct are subject to disciplinary action. The requirements for disciplinary action in the context of the Code of Conduct are found in Resolution 1 of 2003 of the PSCBC (i.e. against employees at level 1 to 12) and Chapter 7 of the SMS Handbook.

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6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES The main co-function of the Department is building- and roads maintenance. The exposure of employees to hazards depends on the nature of work they are performing. Building maintenance employees are working at hospitals where there are different kinds of diseases, high level of noise, heat and dust of coal at the boilers. This could affect the life of the employees at a long run. Roads maintenance employees are always working on the roads where they are exposed to traffic, high levels of noise because of the machinery they are using, diseases, snakes and bees when opening drains or cutting grass and trees. All this are hazardous to the life of the employees if not prevented.

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Annual Report 201213.indb 54 8/19/2013 7:56:45 AM ANNUAL PART D: HUMAN RESOURCE MANAGEMENT

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1. LEGISLATURE THAT GOVERN HR MANAGEMENT The information provided in this part is prescribed by the Public Service Regulations (Chapter 1, Part III J.3 and J.4). 2. INTRODUCTION Overview Human resource serves an engine of the Department. It is one of the key functions for ensuring that the organization meets its objectives. Without sound and proper Human Resource Management (HRM), the Department would not be able to promote service delivery. Therefore it was imperative to ensure that the management of human resources did not take a backseat to other functions but became an integral part of the operations. Overall HRM had to ensure that the Department had necessary capacities to deliver on its mandate. Set HR priorities for the year under review and the impact of these priorities The Department had an approved MTEF plan, a three year plan for the period between 2010 and 2013. The plan sought to ensure that proper organizational structure together with human resource requirements were in place and aligned to the Departmental strategic plan. All intentions to implement this plan were there, however an assessment conducted in 2011 by the Provincial Treasury identified that Mpumalanga had an increasing public service wage bill. Subsequently, the Executive Council directed all departments to review their organizational structures for the sole purpose of freeing resources for service delivery. In line with this directive, an exercise was embarked upon to review Public Works, Roads and Transport organizational structure. The proposed structure focusing mainly on critical posts was submitted to the Department of Public Service and Administration (DPSA) for consideration. No feedback had been received by 31 March 2013.

Workforce planning framework and key strategies to attract and recruit a skilled and capable workforce The Department recognizes that its personnel remain the most valuable asset of the organization. Unfortunately, this is not a fixed asset hence personnel from time to time move to greener pastures. Extensive work has been done to identify occupational categories most affected by labour shortages and introducing initiatives to attract and retain staff in these areas. Employee Wellness Programme (EWP) One of the key aspects of human resource management in any organization revolves around employee health and wellness. The Department has established fully-fledged unit aimed at promoting employee wellness programme and consistently seek to reach its entire workforce through specific targeted programmes. One of these programmes involves keeping in shape by participating in different sporting activities. Another significant programme includes initiatives to manage HIV/AIDS and Occupational, Health and Safety programmes. Employee performance management framework The Department has a Human Resource Utilization and Capacity Development (HRU & CD) unit which deal with the proper deployment of employees as well as their development, through training, learnerships, bursaries, mentorships and the Performance Management Development System (PMDS). All mandates related to this unit are contained in its Human Resource Development Plan. Highlight achievements • Performed much better in terms of compliance with the Employment Equity Act requirements as compared to other provincial departments. Refer to page 19 for detailed analysis. • Signing of performance agreements improved from 98.6% to 99.7% • Reduced the number of injury on duty cases from 41 to 17 • Abolished all unfunded posts from the organogram. Challenges faced by the department • Delay in the approval of organizational structure • High staff turnover at the professional levels. • Turanaround time for filling of posts

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3. HUMAN RESOURCE OVERSIGHT STATISTICS 3.1. Personnel related expenditure The following tables summarises the final audited personnel related expenditure by programme and by salary bands. In particular, it provides an indication of the following: - amount spent on personnel - amount spent on salaries, overtime, homeowner’s allowances and medical aid. Table 3.1.1 Personnel expenditure by programme Programme Total Personnel Training Professional Personnel Average Expenditure Expenditure Expenditure and Special Expenditure personnel (R’000) (R’000) (R’000) Services as a % of Total cost per Expenditure expenditure employee (R’000) (R’000) Administration 343,954 223,979 1,213 7,488 65% 527 Public Works 525,146 220,830 479 519 42% 209 Transport Infrastructure 1,627,451 266,205 47 19,716 16% 103

Transport Operations 987,426 41,385 0 13,517 4% 311

Community Based 39,105 18,453 23 14,397 47% 439 Programmes TOTAL 3,523,082 770,852 1,762 55,637 21% 200 Table 3.1.2 Personnel costs by salary band Salary band Personnel % of Total No. of Average Expenditure personnel cost employees personnel cost (R’000) per employee (R’000) Lower skilled (Levels 1-2) 150,592 17.2 1233 122,135 Skilled (level 3-5) 214,947 24.6 1542 138,052 Highly skilled production (levels 6-8) 169,937 19.5 636 267,197 Highly skilled supervision (levels 9-12) 177,119 19.5 355 480,927 Senior and Top management (levels 50,904 5.8 61 834,492 13-16) Contract (Levels 1-2) 1,192 0.1 15 79,467 Contract (Levels 3-5) 2,080 0.2 15 138,667 Contract (Levels 6-8) 674 0.1 1 674,000 Contract (Levels 9-12) 306 0 0 0 Contract (Levels 13-16) 3,101 0.4 3 1,033,667 TOTAL 770,852 93.9 3 861 88215 Table 3.1.3 Salaries, overtime, home owners allowance and medical aid by programme Programme Salaries Overtime Home Owners Medical Aid Allowance Amount Salaries Amount Overtime Amount HOA as Amount Medical (R’000 as a % of (R’000) as a % of (R’000) a % of (R’000) aid as personnel personnel personnel a % of costs costs costs personnel costs Administration 148,304 19.4 2,123 0.3 9,225 1.2 12,538 1.6 Public Works 146,117 19.2 5,001 0.6 12,841 1.6 11,427 1.5 Transport 167,708 21.8 501 0.1 20,876 2.7 22,805 3.0 Infrastructure Transport 26,348 3.6 2,022 0.3 1,486 0.2 2,509 0.3 Operations Community 12,426 1.8 0 0.0 533 0.1 641 0.1 Based Programmes TOTAL 500,903 65.8 9,647 1.3 44,961 5.8 49,920 6.5

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Table 3.1.4 Salaries, overtime, home owners allowance and medical aid by salary band Salary Bands Salaries Overtime Home Owners Medical Aid Allowance Amount Salaries Amount Overtime Amount HOA as Amount Medical (R’000 as a % of (R’000) as a % of (R’000) a % of (R’000) aid as personnel personnel personnel a % of costs costs costs personnel costs Skilled (level 1-2) 95,412 12.4 464 0.1 14,336 1.9 16,613 2.1 Skilled (level 3-5) 131,680 17.9 3,816 0.5 16,084 2.1 15,648 2.0 Highly skilled 110,704 14.4 4,181 0.6 6,663 0.8 10,572 1.7 production (levels 6-8) Highly skilled 116,693 15.1 1,177 0.1 5,536 0.7 5,799 0.6 supervision (levels 9-12) Senior 40,124 5.1 0 0 2,204 0.3 920 0.1 management (level 13-16) Contract (Levels 1,183 0.1 9 0 0 0 0 0 1-2) Contract (Levels 1,475 0.2 0 0 118 0 156 0 3-5) Contract (Levels 540 0.1 0 0 20 0 9 0 6-8) Contract (Levels 299 0.1 0 0 0 0 7 0 9-12) Contract 2,793 0.4 0 0 0 0 43 0 (Levels13-16) TOTAL 500,903 65.8 9,647 1.3 44,961 5.8 49,767 6.5 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 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. Table 3.2.1 Employment and vacancies by programme Programme Number of posts Number of Vacancy rate Number of on approved posts filled employees establishment additional to the establishment Administration 463 425 4.8 14 Public Works 1 095 1 056 3.3 4 Transport Infrastructure 2 278 2 205 3.3 1 Transport Operations 146 133 10.3 0 Community Based Programmes 43 42 2.3 0 TOTAL 4 025 3 861 3.7 19 Table 3.2.2 Employment and vacancies by salary band Salary band Number of posts Number of Vacancy rate Number of on approved posts filled employees establishment additional to the establishment Lower skilled ( 1-2) 1 248 1 233 1.2 0 Skilled(3-5) 1 624 1 537 4.1 0 Highly skilled production (6-8) 657 636 3.2 0

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Salary band Number of posts Number of Vacancy rate Number of on approved posts filled employees establishment additional to the establishment Highly skilled supervision (9-12) 389 355 8.7 0 Senior management (13-16) 73 61 16.4 4 Contract (Levels 1-2), Permanent 15 15 0 14 Contract (Levels 3-5), Permanent 15 15 0 0 Contract (Levels 6-8), Permanent 1 1 0 0 Contract (Levels 13-16), Permanent 3 3 0 1

TOTAL 4 025 3 861 3.7 19 Table 3.2.3 Employment and vacancies by critical occupations Critical occupation Number of posts Number of Vacancy Number of on approved posts filled rate employees establishment additional to the establishment Admin related, Permanent 216 198 8.3 0 All artisans in the building metal machinery 222 212 4.5 0 etc., Permanent Architects town and traffic planners, 3 3 0 1 Permanent Artisan project and related superintendents, 28 28 0 0 Permanent Auxiliary and related workers, Permanent 31 31 0 0 Boiler and related operators, Permanent 39 36 7.7 0 Building and other property caretakers, 13 13 0 0 Permanent Bus and heavy vehicle drivers, Permanent 17 17 0 0 Cartographers and surveyors, Permanent 1 1 0 0 Cartographic surveying and related 9 9 0 0 technicians, Permanent Civil engineering technicians, Permanent 8 7 12.5 0 Cleaners in offices workshops hospitals etc., 170 166 2.4 0 Permanent Client inform clerks(switchb recept inform 4 4 0 0 clerks), Permanent Communication and information related, 4 3 25 0 Permanent Electrical and electronics engineering 1 1 0 0 technicians, Permanent Engineering sciences related, Permanent 59 56 5.1 1 Engineers and related professionals, 19 19 0 3 Permanent Farm hands and labourers, Permanent 51 50 2 0 Finance and economics related, Permanent 17 15 11.8 1 Financial and related professionals, Permanent 42 38 9.5 0 Financial clerks and credit controllers, 174 172 1.1 0 Permanent General legal admin and rel. professionals, 1 1 0 0 Permanent Head of department/ chief executive officer, 2 2 0 0 Permanent Human resources and organisat development 15 14 6.7 0 and relate prof, Permanent Human resources clerks, Permanent 79 77 2.5 0 Human resources related, Permanent 48 41 14.6 13 Information technology related, Permanent 7 7 0 0 Inspectors of apprentices works and vehicles, 20 20 0 0 Permanent

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Critical occupation Number of posts Number of Vacancy Number of on approved posts filled rate employees establishment additional to the establishment Language practitioners interpreters and other 1 1 0 0 commun, Permanent Legal related, Permanent 3 3 0 0 Library mail and related clerks, Permanent 22 22 0 0 Light vehicle drivers, Permanent 29 28 3.4 0 Logistical support personnel, Permanent 6 6 0 0 Material-recording and transport clerks, 8 8 0 0 Permanent Mechanical engineering the technicians, 9 9 0 0 Permanent Messengers porters and deliverers, Permanent 6 6 0 0 Motor vehicle drivers, Perm 17 17 0 0 Motorised farm and forestry plant operators, 2 2 0 0 Permanent Natural sciences related, Permanent 5 5 0 0 Other admin and related clerks and organisers, 135 133 1.5 0 Permanent Other admin policy and related officers, 10 10 0 0 Permanent Other machine operators, Permanent 1 1 0 0 Other occupations, Permanent 15 15 0 0 Quantity surveyors and rela prof not class 10 9 10 0 elsewhere, Permanent Regulatory inspectors, Permanent 80 74 7.5 0 Risk management and security services, 3 3 0 0 Permanent Road superintendents, Permanent 84 72 14.3 0 Road trade workers., Permanent 9 9 0 0 Road workers, Permanent 1 707 1647 2.6 0 Secretaries and other keyboard operating 155 153 1.3 0 clerks, Permanent Security guards, Permanent 5 5 0 0 Senior managers, Permanent 44 33 25 0 Social work and related professionals, 1 1 0 0 Permanent Trade labourers, Permanent 288 281 2.4 0 Trade quality controllers, Permanent 17 17 0 0 Trade related, Permanent 3 3 0 0 Water plant and related operators, Permanent 50 47 6 0 TOTAL 4 025 3 861 3.7 19 3.3. 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 3.3.1 Job evaluation by salary band Salary band Number of Number % of posts Posts upgraded Posts downgraded posts on of jobs evaluated by Number % of posts Number % of posts approved evaluated salary bands evaluated evaluated establishment Highly skilled 686 141 20.6 3 2.1% 0 0 production (Levels 6-8)

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Salary band Number of Number % of posts Posts upgraded Posts downgraded posts on of jobs evaluated by Number % of posts Number % of posts approved evaluated salary bands evaluated evaluated establishment Highly skilled 361 4 1.1 0 0 0 0 supervision (Levels 9-12) Senior 46 1 2.2 1 100 % 0 0 management service band A TOTAL 1 093 146 4 0 0

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 3.3.2 Profile of employees whose positions were upgraded due to their posts being upgraded Beneficiary African Asian Coloured White TOTAL Female 0 0 0 0 0 Male 1 0 0 0 0 TOTAL 1 0 0 0 0 Employees with a disability 3.4. 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. Table 3.4.1 Annual turnover rates by salary band Salary Band Number of Appointments Terminations Turnover rate employees at and transfers and transfers beginning of into the out of the period-April department department 2012 Lower skilled (Levels 1-2), Permanent 1 424 0 50 3.5

Skilled (Levels 3-5), Permanent 1 513 4 100 6.6 Highly skilled production (Levels 676 0 19 2.8 6-8), Permanent Highly skilled supervision (Levels 350 0 7 2 9-12), Permanent Senior Management Service Band A, 38 0 1 2.6 Permanent Senior Management Service Band B, 9 0 0 0 Permanent Senior Management Service Band C, 3 0 0 0 Permanent Senior Management Service Band D, 2 0 0 0 Permanent Contract (Levels 1-2), Permanent 42 22 48 114.3 Contract (Levels 3-5), Permanent 16 1 3 18.8 Contract (Levels 6-8), Permanent 2 0 2 100 Contract (Levels 9-12), Permanent 1 0 0 0 Contract (Band A), Permanent 3 0 2 66.7 TOTAL 4 079 27 232 5.7

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Table 3.4.2 Annual turnover rates by critical occupation Critical occupation Number of Appointments Terminations and Turnover rate employees at and transfers into transfers out of beginning of the department the Department period-April 2012 Admin related, Permanent 204 0 7 3.4 All artisans in the building metal 224 0 12 5.4 machinery etc., Permanent Architects town and traffic planners, 3 0 0 0 Permanent Artisan project and related 29 0 0 0 superintendents, Permanent Auxiliary and related workers, 53 0 0 0 Permanent Boiler and related operators, 38 0 2 5.3 Permanent Building and other property 14 0 1 7.1 caretakers, Permanent Bus and heavy vehicle drivers, 18 0 1 5.6 Permanent Cartographers and surveyors, 1 0 0 0 Permanent Cartographic surveying and related 10 0 0 0 technicians, Permanent Civil engineering technicians, 6 0 0 0 Permanent Cleaners in offices workshops 174 1 8 4.6 hospitals etc., Permanent Client inform clerks(switchboard 4 0 0 0 receptionist, inform clerks), Permanent Communication and information 4 0 1 25 related, Permanent Electrical and electronics 1 0 0 0 engineering technicians, Permanent Engineering sciences related, 55 0 1 1.8 Permanent Engineers and related professionals, 22 0 3 13.6 Permanent Farm hands and labourers, 51 0 1 2 Permanent Finance and economics related, 25 1 1 4 Permanent Financial and related professionals, 37 0 0 0 Permanent Financial clerks and credit 154 0 3 1.9 controllers, Permanent Food services aids and waiters, 1 0 0 0 Permanent General legal admin and rel. 1 0 0 0 Professionals, Permanent Head of department/chief 2 0 0 0 executive officer, Permanent Human resources and organisational 17 0 0 0 development and relate prof, Permanent Human resources clerks, Permanent 81 0 3 3.7 Human resources related, 59 21 43 72.9 Permanent Information technology related, 7 0 0 0 Permanent Inspectors of apprentices works and 20 0 0 0 vehicles, Permanent Language practitioners interpreters 2 0 1 50 and other commun, Permanent Legal related, Permanent 3 0 0 0 62

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Critical occupation Number of Appointments Terminations and Turnover rate employees at and transfers into transfers out of beginning of the department the Department period-April 2012 Library mail and related clerks, 23 0 0 0 Permanent Light vehicle drivers, Permanent 37 0 2 5.4 Logistical support personnel, 8 0 0 0 Permanent Material-recording and transport 9 0 0 0 clerks, Permanent Mechanical engineering 10 0 1 10 technicians, Permanent Messengers porters and deliverers, 9 0 3 33.3 Permanent Motor vehicle drivers, Permanent 21 0 1 4.8 Motorised farm and forestry plant 2 0 0 0 operators, Permanent Natural sciences related, Permanent 5 0 0 0 Other admin and related clerks and 140 2 3 2.1 organisers, Permanent Other admin policy and related 10 0 0 0 officers, Permanent Other information technology 1 0 0 0 personnel., Permanent Other machine operators, 1 0 0 0 Permanent Other occupations, Permanent 15 0 0 0 Quantity surveyors and related prof 10 0 0 0 not class elsewhere, Permanent Regulatory inspectors, Permanent 78 0 3 3.8 Risk management and security 3 0 0 0 services, Permanent Road superintendents, Permanent 78 0 5 6.4 Road trade workers., Permanent 10 0 1 10 Road workers, Permanent 1726 1 95 5.5 Secretaries and other keyboard 163 1 9 5.5 operating clerks, Permanent Security guards, Permanent 5 0 0 0 Senior managers, Permanent 29 0 3 10.3 Social work and related 1 0 0 0 professionals, Permanent Trade labourers, Permanent 292 0 14 4.8 Trade quality controllers, Permanent 17 0 0 0 Trade related, Permanent 5 0 0 0 Water plant and related operators, 51 0 4 7.8 Permanent TOTAL 4 079 27 232 5.7 The table below identifies the major reasons why staff left the department. Table 3.4.3 Reasons why staff left the department Termination Type Number % of total resignations Death 57 24.6 Resignation 43 18.5 Expiry of contract 46 19.8 Dismissal – operational changes 0 0 Dismissal – misconduct 1 0.4 Discharged due to ill-health 5 2.2 Retirement 80 34.5 Transfer to other Public Service Departments 0 0 TOTAL 232 -

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Termination Type Number % of total resignations Total number of employees who left as a % of total - 5.7 employment Table 3.4.4 Promotions by critical occupation Occupation Employees 1 Promotions to Salary level Progressions to Notch April 2012 another salary promotions as a another notch progression as a level % of employees within a salary % of employees by occupation level by occupation Admin related 204 1 0.5 172 84.3 All artisans in the 224 0 0 127 56.7 building metal machinery etc. Architects town and 3 0 0 2 66.7 traffic planners Artisan project 29 0 0 22 75.9 and related superintendents Auxiliary and related 53 0 0 17 32.1 workers Boiler and related 38 0 0 30 78.9 operators Building and other 14 0 0 7 50 property caretakers Bus and heavy 18 0 0 13 72.2 vehicle drivers Cartographers and 1 0 0 1 100 surveyors Cartographic 10 0 0 8 80 surveying and related technicians Civil engineering 6 0 0 2 33.3 technicians Cleaners in offices 174 0 0 89 51.1 workshops hospitals etc. Client inform clerks 4 0 0 4 100 (switchboard receptionist, inform clerks) Communication 4 0 0 3 75 and information related Electrical and 1 0 0 0 0 electronics engineering technicians Engineering 55 0 0 40 72.7 sciences related Engineers and 22 0 0 14 63.6 related professionals Farm hands and 51 0 0 47 92.2 labourers Finance and 25 1 4 11 44 economics related Financial and 37 0 0 34 91.9 related professionals Financial clerks and 154 3 1.9 157 101.9 credit controllers Food services aids 1 0 0 0 0 and waiters General legal 1 0 0 1 100 Administration and rel. Professionals

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Occupation Employees 1 Promotions to Salary level Progressions to Notch April 2012 another salary promotions as a another notch progression as a level % of employees within a salary % of employees by occupation level by occupation Head of 2 0 0 2 100 department/chief executive officer Human resources 17 0 0 13 76.5 and organisation development and relate prof Human resources 81 0 0 69 85.2 clerks Human resources 59 0 0 27 45.8 related Information 7 0 0 5 71.4 technology related Inspectors of 20 0 0 18 90 apprentices works and vehicles Language 2 0 0 1 50 practitioners interpreters and other commun Legal related 3 0 0 2 66.7 Library mail and 23 0 0 20 87 related clerks Light vehicle drivers 37 0 0 11 29.7 Logistical support 8 0 0 5 62.5 personnel Material-recording 9 0 0 5 55.6 and transport clerks Mechanical 10 0 0 8 80 engineering technicians Messengers porters 9 0 0 4 44.4 and deliverers Motor vehicle drivers 21 0 0 12 57.1 Motorised farm 2 0 0 2 100 and forestry plant operators Natural sciences 5 0 0 5 100 related Other admin and 140 0 0 94 67.1 related clerks and organisers Other admin policy 10 0 0 8 80 and related officers Other information 1 0 0 0 0 technology personnel. Other machine 1 0 0 0 0 operators Other occupations 15 3 20 7 46.7 Quantity surveyors 10 0 0 7 70 and rela prof not class elsewhere Regulatory 78 0 0 70 89.7 inspectors Risk management 3 0 0 2 66.7 and security services Road 78 0 0 60 76.9 superintendents Road trade workers. 10 0 0 6 60 Road workers 1726 0 0 1303 75.5

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Occupation Employees 1 Promotions to Salary level Progressions to Notch April 2012 another salary promotions as a another notch progression as a level % of employees within a salary % of employees by occupation level by occupation Secretaries and 163 0 0 132 81 other keyboard operating clerks Security guards 5 0 0 2 40 Senior managers 29 1 3.4 22 75.9 Social work and 1 0 0 0 0 related professionals Trade labourers 292 0 0 138 47.3 Trade quality 17 0 0 9 52.9 controllers Trade related 5 0 0 1 20 Water plant and 51 0 0 44 86.3 related operators TOTAL 4 079 9 0.2 2 915 71.5 Table 3.4.5 Promotions by salary band Salary Band Employees 1 Promotions to Salary bands Progressions to Notch April 2012 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 1 424 0 0 872 61.2 1-2), Permanent Skilled (Levels 1 513 3 0.2 1 186 78.4 3-5), Permanent Highly skilled 676 1 0.1 510 75.4 production (Levels 6-8), Permanent Highly skilled 350 4 1.1 304 86.9 supervision (Levels 9-12), Permanent Senior management 52 1 1.9 36 69.2 (Levels 13-16), Permanent Contract 42 0 0 2 4.8 (Levels 1-2), Permanent Contract 16 0 0 4 25 (Levels 3-5), Permanent Contract 2 0 0 1 50 (Levels 6-8), Permanent Contract 1 0 0 0 0 (Levels 9-12), Permanent Contract 3 0 0 0 0 (Levels 13-16), Permanent TOTAL 4 079 9 0.2 2 915 71.5 3.5. Employment equity Table 3.5.1 total number of employees (including employees with disabilities) in each of the following occupational categories as at 31 March 2013. Occupational category Male Female TOTAL African Coloured Indian White African Coloured Indian White Legislators, senior officials and 21 0 0 3 11 0 1 0 36 managers Professionals 115 0 0 14 78 1 0 4 212

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Occupational category Male Female TOTAL African Coloured Indian White African Coloured Indian White Technicians and associate 134 1 1 6 128 0 0 6 276 professionals Clerks 242 2 0 3 302 2 0 18 569 Service and sales workers 50 0 0 0 32 0 0 0 82 Craft and related trades 266 0 0 48 47 0 0 0 361 workers Plant and machine operators 121 0 0 6 21 0 0 0 148 and assemblers Elementary occupations 1268 1 0 24 884 0 0 0 2177 TOTAL 2 217 4 1 104 1 503 3 1 28 3 861 Employees with disabilities 42 1 0 4 37 0 0 2 86 Table 3.5.2 total number of employees (including employees with disabilities) in each of the following occupational bands on 31 March 2013 Occupational Band Male Female TOTAL African Coloured Indian White African Coloured Indian White Top Management, 2 0 0 1 1 0 0 1 5 Permanent Senior Management, 32 0 0 5 18 0 1 0 56 Permanent Professionally qualified and 214 1 1 25 106 1 0 7 355 experienced specialists and mid-management, Permanent Skilled technical and 316 1 0 39 260 1 0 19 636 academically qualified workers, junior management, supervisors, foremen, Permanent Semi-skilled and discretionary 1075 1 0 32 432 1 0 1 1542 decision making, Permanent Unskilled and defined 568 1 0 0 664 0 0 0 1233 decision making, Permanent Contract (Top 1 0 0 0 0 0 0 0 1 Management), Permanent Contract (Senior 0 0 0 2 0 0 0 0 2 Management), Permanent Contract (Skilled technical), 1 0 0 0 0 0 0 0 1 Permanent Contract (Semi-skilled), 2 0 0 0 13 0 0 0 15 Permanent Contract (Unskilled), 6 0 0 0 9 0 0 0 15 Permanent TOTAL 2217 4 1 104 1503 3 1 28 3 861 Table 3.5.3 Recruitment Occupational Band Male Female TOTAL African Coloured Indian White African Coloured Indian White Semi-skilled and discretionary 2 0 0 0 2 0 0 0 4 decision making Contract (Semi-skilled), 0 0 0 0 1 0 0 0 1 Permanent Contract (Unskilled), 11 0 0 0 11 0 0 0 22 Permanent TOTAL 13 0 0 0 14 0 0 0 27 Employees with disabilities 0 0 0 0 0 0 0 0 0 Table 3.5.4 Promotions Occupational Band Male Female TOTAL African Coloured Indian White African Coloured Indian White Top Management, 3 0 0 0 0 0 0 0 3 Permanent

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Occupational Band Male Female TOTAL African Coloured Indian White African Coloured Indian White Senior Management, 17 0 0 4 11 0 1 1 34 Permanent Professionally qualified and 188 1 1 20 91 1 0 6 308 experienced specialists and mid-management, Permanent Skilled technical and 255 1 0 18 224 1 0 12 511 academically qualified workers, junior management, supervisors, foremen, Permanent Semi-skilled and discretionary 852 1 0 24 310 1 0 1 1189 decision making, Permanent Unskilled and defined 433 1 0 0 438 0 0 0 872 decision making, Permanent Contract (Skilled technical), 1 0 0 0 0 0 0 0 1 Permanent Contract (Semi-skilled), 2 0 0 0 2 0 0 0 4 Permanent Contract (Unskilled), 0 0 0 0 2 0 0 0 2 Permanent TOTAL 1 751 4 1 66 1 078 3 1 20 2 924 Employees with disabilities 28 1 0 3 22 0 0 2 56 Table 3.5.5 Terminations Occupational Band Male Female TOTAL African Coloured Indian White African Coloured Indian White Senior Management, 0 0 0 0 1 0 0 0 1 Permanent Professionally qualified 6 0 0 1 0 0 0 0 7 and experienced specialists and mid- management, Permanent Skilled technical 10 0 0 4 4 0 0 1 19 and academically qualified workers, junior management, supervisors, foremen, Permanent Semi-skilled and 83 0 0 2 15 0 0 0 100 discretionary decision making, Permanent Unskilled and defined 28 0 0 0 22 0 0 0 50 decision making, Permanent Contract (Senior 2 0 0 0 0 0 0 0 2 Management), Permanent Contract (Skilled 2 0 0 0 0 0 0 0 2 technical), Permanent Contract (Semi-skilled), 1 0 0 0 2 0 0 0 3 Permanent Contract (Unskilled), 24 0 0 0 24 0 0 0 48 Permanent TOTAL 156 0 0 7 68 0 0 1 232 Employees with 7 0 0 7 1 0 0 0 8 Disabilities Table 3.5.6 Skills development Occupational category Male Female TOTAL African Coloured Indian White African Coloured Indian White Legislators, senior officials and 6 0 0 3 8 0 0 0 17 managers

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Occupational category Male Female TOTAL African Coloured Indian White African Coloured Indian White Professionals 31 0 0 0 61 0 0 0 92 Technicians and associate 17 0 0 0 12 0 0 0 9 professionals Clerks 5 0 0 0 17 0 0 0 22 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 0 0 0 0 0 0 0 0 0 workers Plant and machine operators 0 0 0 0 0 0 0 0 0 and assemblers Elementary occupations 13 0 0 0 11 0 0 0 24 TOTAL 72 0 0 3 109 0 0 0 184 Employees with disabilities 6 0 0 0 5 0 0 0 11 3.6. Performance rewards To encourage good performance, the department has granted the following performance rewards during the year under review. The information is presented in terms of race, gender, and disability), salary bands and critical occupations. Table 3.6.1 Performance rewards by race, gender and disability Race and Gender Beneficiary Profile Cost Demographics Number of Number of % of Total within Cost (R’000) Average cost beneficiaries employees group per employee African, Female 1 215 1 466 82.9 4,208 3,463 African, Male 1 912 2 175 87.3 7,073 3,700 Asian, Female 0 1 0 0 0 Asian, Male 1 1 100 7 6,832 Coloured, Female 2 3 66.7 17 8,455 Coloured, Male 2 3 66.7 7 3,614 Total Blacks, Female 1 217 1470 82.8 4,225 3,471 Total Blacks, Male 1 915 2194 87.3 7,088 3,701 White, Female 21 26 80.8 162 7,730 White, Male 91 100 91 544 5,981 Employees with a 62 86 72.1 211 3,401 disability TOTAL 3 306 3861 85.3 12,230 3,699 Table 3.6.2 Performance rewards by salary band for personnel below Senior Management Service Salary Band Beneficiary Profile Cost Total cost as a Number of Number of % of Total Total cost Average cost % of the total beneficiaries employees within salary (R’000) per employee personnel bands expenditure Lower skilled 1 015 1 233 82.3 2,067 2,036 18% (Levels 1-2) Skilled (Levels 3-5) 1 364 1 557 87.6 3,439 2,521 30% Highly skilled 598 636 94 2,858 4,779 25% production (Levels 6-8) Highly skilled 293 355 82.5 2,994 10,218 27% supervision (Levels 9-12) Contract (Levels 0 15 0 0 0 1-2) Contract (Levels 2 15 13.3 5 2,500 0% 3-5) Contract (Levels 0 1 0 0 0 6-8) Periodical 0 25 0 0 0 100% Remuneration

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Salary Band Beneficiary Profile Cost Total cost as a Number of Number of % of Total Total cost Average cost % of the total beneficiaries employees within salary (R’000) per employee personnel bands expenditure Abnormal 0 5 399 0 0 0 18% Appointment TOTAL 3 272 9 236 35.4 11,363 3,473 30%

Table 3.6.3 Performance rewards by critical occupation Critical occupation Beneficiary profile Cost Number of Number of % of total Total cost Average cost beneficiaries employees within (R’000) per employee occupation Admin related 157 198 79.3 1,375 8,758 All artisans in the building metal 200 212 94.3 842 4,210 machinery etc. Architects town and traffic planners 2 3 66.7 45 22,500 Artisan project and related 25 28 89.3 192 7,680 superintendents Auxiliary and related workers 30 31 96.8 72 2,400 Boiler and related operators 25 36 69.4 66 2,640 Building and other property 12 13 92.3 25 2,083 caretakers Bus and heavy vehicle drivers 17 17 100 41 2,412 Cartographers and surveyors 0 1 0 0 0 Cartographic surveying and related 9 9 100 63 7,000 technicians Civil engineering technicians 5 7 71.4 31 6,200 Cleaners in offices workshops hospitals 149 166 89.8 318 2,134 etc. Client inform clerks(switchboard, 4 4 100 14 3,500 recept inform clerks) Communication and information 4 3 133.3 19 4,750 related Electrical and electronics engineering 0 1 0 0 0 technicians Engineering sciences related 41 56 73.2 431 10,512 Engineers and related professionals 14 19 73.7 267 19,071 Farm hands and labourers 48 50 96 97 2,021 Finance and economics related 13 15 86.7 108 8,308 Financial and related professionals 33 38 86.8 297 9,000 Financial clerks and credit controllers 158 172 91.9 744 4,709 General legal Administration and rel. 1 1 100 17 17,000 Professionals Head of department/chief executive 2 2 100 35 17,500 officer Human resources and organisat 9 14 64.3 81 9,000 development and relate prof Human resources clerks 66 77 85.7 255 3,864 Human resources related 25 41 61 203 8,120 Information technology related 4 7 57.1 24 6,000 Inspectors of apprentices works and 18 20 90 153 8,500 vehicles Language practitioners interpreters 1 1 100 5 5,000 and other commun Legal related 3 3 100 73 24,333 Library mail and related clerks 19 22 86.4 69 3,632 Light vehicle drivers 23 28 82.1 59 2,565 Logistical support personnel 6 6 100 30 5,000 Material-recording and transport 7 8 87.5 28 4,000 clerks Mechanical engineering technicians 4 9 44.4 46 11,500

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Critical occupation Beneficiary profile Cost Number of Number of % of total Total cost Average cost beneficiaries employees within (R’000) per employee occupation Messengers porters and deliverers 8 6 133.3 20 2,500 Motor vehicle drivers 17 17 100 43 2,529 Motorised farm and forestry plant 2 2 100 4 2,000 operators Natural sciences related 5 5 100 16 3,200 Other admin and related clerks and 102 133 76.7 430 4,216 organisers Other admin policy and related 8 10 80 65 8,125 officers Other machine operators 1 1 100 2 2,000 Other occupations 11 15 73.3 79 7,182 Quantity surveyors and rela prof not 4 9 44.4 63 15,750 class elsewhere Regulatory inspectors 65 74 87.8 333 5,123 Risk management and security 1 3 33.3 5 5,000 services Road superintendents 68 72 94.4 297 4,368 Road trade workers. 10 9 111.1 50 5,000 Road workers 1 405 1 647 84.5 3,137 2,204 Secretaries and other keyboard 126 153 82.4 368 2,921 operating clerks Security guards 4 5 80 8 2,000 Senior managers 15 33 45.5 420 28,000 Social work and related professionals 1 1 100 4 4,000 Trade labourers 251 281 89.3 559 2,227 Trade quality controllers 16 17 94.1 94 5,875 Trade related 3 3 100 16 5,333 Water plant and related operators 49 47 104.3 130 2,653 TOTAL 3 306 3 861 85.3 12, 268 3,699 Table 3.6.4 Performance related rewards (cash bonus), by salary band for Senior Management Service Salary Band Beneficiary Profile Cost Total cost as a Number of Number of % of Total Total cost Average cost % of the total beneficiaries employees within salary (R’000) per employee personnel bands expenditure Band A 21 46 45.7 483 23,000 1.1 Band B 1 12 8.3 28 28,000 0.2 Band C 0 4 0 0 0 0 Band D 1 2 50 94 94,000 2.7 TOTAL 23 64 35.9 605 26,304.3 1 3.7. Foreign workers The tables below summarise the employment of foreign nationals in the department in terms of salary band and major occupation. Table 3.7.1 Foreign workers by salary band Salary band 01 April 2012 31 March 2013 Change Number % of total Number % of total Number % Change Lower skilled 1 4.8 1 4.8 0 0

Skilled 2 9.5 2 9.5 0 0 (levels 3-5) Abnormal 18 85.7 18 85.7 11 100 appointment TOTAL 21 100 21 100 11 100

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Table 3.7.2 Foreign workers by major occupation Major 01 April 2012 31 March 2013 Change Occupation Number % of total Number % of total Number % Change Drivers 2 9.5 2 9.5 0 0 operators and ships crew Elementary 19 90.5 19 90.5 11 100 occupations TOTAL 21 100 21 100 11 100 3.8. 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 3.8.1 Sick leave Salary band Total days % Days with Number of % of Total Average days Estimated medical employees employees per employee cost (R’000) certification using sick using sick leave leave Lower skilled 5 810 88.2 847 38.3 7 1,504 (Levels 1-2) Skilled (Levels 4 803 88.4 772 34.9 6 1,590 3-5) Highly skilled 2 563 86.8 389 17.6 7 1,588 production (Levels 6-8) Highly skilled 975 86.2 167 7.5 6 1,276 supervision (Levels 9-12) Senior 122 95.1 21 0.9 6 376 management (Levels 13-16) Contract 50 68 17 0.8 3 8 (Levels 1-2) TOTAL 14 323 87.9 2 213 100 6 6,342 Table 3.8.2 Disability leave (temporary and permanent) 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) 136 100 5 55.6 27 34 Skilled (Levels 3-5) 71 100 3 33.3 24 20 Highly skilled production 2 100 1 11.1 2 1 (Levels 6-8) TOTAL 209 100 9 100 23 55 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 3.8.3 Annual Leave Salary band Total days taken Number of Average per employees using employee annual leave Lower skilled (Levels 1-2) 28 607.93 1 272 22 Skilled (Levels 3-5) 36 546.08 1 573 23 Highly skilled production (Levels 6-8) 14 621 671 22 Highly skilled supervision (Levels 9-12) 7 555 359 21

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Salary band Total days taken Number of Average per employees using employee annual leave Senior management (Levels 13-16) 1 396 60 23 Contract (Levels 1-2) 452 51 9 Contract (Levels 3-5) 79 5 16 Contract (Levels 6-8) 13 1 13 Contract (Levels 13-16) 69 5 14 TOTAL 89 339.01 3 997 22 Table 3.8.4 Capped leave Salary Band Total days of Number of Average number Average capped capped leave employees using of days taken per leave per taken capped leave employee employee as at 31 March Lower skilled 23 10 2 10 (Levels 1-2) Skilled (Levels 3-5) 147 34 4 34 Highly skilled production 77 9 9 9 (Levels 6-8) Highly skilled supervision 48 6 8 6 (Levels 9-12) TOTAL 295 59 5 59 The following table summarise payments made to employees as a result of leave that was not taken. Table 3.8.5 Leave payouts Reason Total amount Number of Average per (R’000) employees employee (R’000) Capped leave payouts on termination of service for 2012/13 4,414 342 12 Current leave payout on termination of service for 2012/13 149 14 11 TOTAL 4,365 356 12 3.9. HIV/AIDS and Health Promotion Programmes Table 3.9.1 Steps taken to reduce the risk of occupational exposure Units/categories of employees identified to be at Key steps taken to reduce the risk high risk of contracting HIV and related diseases (if any) Youth, transport officers, field workers and Condom distribution, HCT, awareness workshops, management commemoration of calendar events and campaigns Table 3.9.2 Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and provide the required information) Question Yes No Details, if yes 1. Has the department designated a member of the √ Mr S.T Lukhele Senior Manager: Employee SMS to implement the provisions contained in Part Health and Wellness 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 √ Yes There are 5 professional social workers has it designated specific staff members to promote and 4 Support staff with a budget of R the health and well-being of 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 √ The focus is the four pillars namely wellness Assistance or Health Promotion Programme for management, HIVandAIDS, TB and your employees? If so, indicate the key elements/ chronic diseases management, Health services of this Programme. and Productivity and Sheq (Safety, health, environment and quality management.

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Question Yes No Details, if yes 4. Has the department established (a) committee(s) √ In all the Districts there are representatives of as contemplated in Part VI E.5 (e) of Chapter 1 of the different cost centres. the Public Service Regulations, 2001? If so, please Ms Monica Mahlangu: Nkangala provide the names of the members of the committee Ms Smangele Nkosi: Ehlanzeni and the stakeholder(s) that they represent. Mr Oupa Nhleko: Gert Sibande Mr Sam Silinda: Bohlabela 5. Has the department reviewed its employment √ The HIVandAIDS policy policies and practices to ensure that these do not The Wellness management policy unfairly discriminate against employees on the The Sports policy basis of their HIV status? If so, list the employment policies/practices so reviewed. 6. Has the department introduced measures to √ Through the HIV and AIDS policy protect HIV-positive employees or those perceived to be HIV-positive from discrimination? If so, list the key elements of these measures. 7. Does the department encourage its employees √ During the wellness days and all the to undergo Voluntary Counselling and Testing? If so, workshops conducted by the section. The list the results that you have you achieved. results have been negative in the sense that very few people go for testing. 8. Has the department developed measures/ √ Evaluation of Programmes implemented is indicators to monitor and evaluate the impact of done on annual basis its health promotion programme? If so, list these measures/indicators. 3.10. Labour relations The following table summarises the outcome of disciplinary hearings conducted within the department for the year under review.

Table 3.10.1 Misconduct and disciplinary hearings finalised Outcomes of disciplinary hearings Number % of Total Verbal warning 05 10% Written warning 09 17% Final written warning 08 15% Suspended without pay 06 12% Dismissal 04 8% Not guilty 06 12% Case withdrawn 14 27% TOTAL 52 100% Table 3.10.2 Types of misconduct addressed at disciplinary hearings Type of misconduct (based on annexure A) Number % of Total Theft , Fraud and Bribe 07 46.7% Absenteeism 06 40.0% Gross Negligence 01 6.7% Un-authorised use of state vehicle 01 6.7% TOTAL 15 100% Table 3.10.3 Grievances logged Grievances Number % of Total Number of grievances resolved 17 63% Number of grievances not resolved 10 37% TOTAL number of grievances lodged 27 100% Table 3.10.4 Disputes logged Number % of Total Number of disputes upheld 02 10% Number of disputes dismissed 07 35% Disputes awaiting date for an arbitration hearing 11 55% TOTAL number of disputes lodged 20 100%

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Table 3.10.6 Strike actions Total number of persons working days lost 0 Total costs working days lost 0 Amount (R’000) recovered as a result of no work no 0 pay Table 3.10.7 Precautionary suspensions Number of people suspended 2 Number of people who’s suspension exceeded 30 2 days Average number of days suspended 637 Cost (R’000) of suspension 153 3.11. Skills development This section highlights the efforts of the department with regard to skills development. Table 3.11.1 Training needs identified Occupational Gender Number of Training needs identified at start of the reporting period category employees Learnerships Skills Other forms TOTAL as at 1 April programmes of training 2012 and other short courses Legislators, senior Female 12 0 0 0 0 officials and Male 24 0 0 0 0 managers Professionals Female 83 0 283 0 283 Male 129 0 150 0 150 Technicians Female 134 0 30 0 30 and associate Male 142 0 104 0 104 professionals Clerks Female 322 0 05 0 5 Male 247 0 04 0 4 Plant and machine Female 100 0 0 0 0 operators and Male 491 0 02 0 2 assemblers Elementary Female 884 09 02 0 11 occupations Male 1 308 06 0 0 6 Sub Total Female 1 535 09 320 0 329 Male 2 341 06 260 0 264 TOTAL 3 786 15 580 0 595 Table 3.11.2 Training provided for the period Occupational category Gender Number of Training provided within the reporting period employees Learnerships Skills Other forms TOTAL as at 1 April programmes of training 2012 and other short courses Legislators, senior officials Female 12 0 08 21 29 and managers Male 24 0 11 11 22 Professionals Female 83 0 35 25 60 Male 129 0 13 37 50 Technicians and associate Female 134 0 01 09 10 professionals Male 142 0 00 12 12 Clerks Female 322 0 17 186 203 Male 247 0 05 96 101 Plant and machine Female 100 0 10 0 10 operators and assemblers Male 491 0 15 0 15 Elementary occupations Female 884 09 45 166 220 Male 1 308 06 35 93 134 Sub total Female 1 535 09 116 407 532 Male 2 341 06 79 249 334 TOTAL 3 786 15 195 656 866 75

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3.12. Injury on duty The following tables provide basic information on injury on duty. Table 3.12.1 Injury on duty Nature of injury on duty Number % of Total Required basic medical attention only 17 100% Temporary total disablement 0 - Permanent disablement 0 - Fatal 0 - TOTAL 17 100%

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DEPARTMENT OF PUBLIC WORKS, ROADS AND TRANSPORT

ANNUAL FINANCIAL STATEMENTS

For the year ended 31 March 2013

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8 Annual Financial Statements for the year ended 31 March 2013 TABLE OF CONTENTS

Report of the Audit Committee 81

Report of the Accounting Officer 83

Report of the Auditor-General 89

Appropriation Statement 94

Notes to the Appropriation Statement 106

Statement of Financial Performance 111

Statement of Financial Position 112

Statement of Changes in Net Assets 113

Cash Flow Statement 114

Notes to the Annual Financial Statements (including Accounting policies) 115

Disclosures Notes to the Annual Financial Statements 129

Annexures 145

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8 Report of the Audit Committee for the year ended 31 March 2013 REPORT OF THE AUDIT COMMITTEE We are pleased to present our report for the financial year ended 31 March 2013. Audit Committee Members and Attendance: The current Audit Committee consists of four members. There were neither appointments nor resignations of members in the year under review. The meeting attendance details during the 2012/13 financial year were as follows: Name of Member Number of Meetings Attended 1. Ms. IT Ranape (Chairperson) 9 2. Mr. MA Mashego 9 3. Mr. AC Keyser 4 4. Mr. A Dzuguda 7 Audit Committee Responsibility The Audit Committee has complied with its responsibilities arising from section 38(1)(a) of the Public Finance Management Act (PFMA) and Treasury Regulation (TR) 3.1.13. The Committee has adopted formal terms of reference by way of the Audit Committee Charter to guide its operations and discharge its responsibilities. Effectiveness of Internal Control The Internal Audit Directorate is independent of management and reports functionally to the Audit Committee. The department conducted the risk assessment exercise where risks were identified, impacts of risk were assessed and the system through which management is managing these risks has also been assessed. On the basis of such a risk assessment, a three-year rolling plan and an annual operational plan was prepared by Internal Audit and approved by the Audit Committee. The Audit Committee is of the opinion that the control environment has improved from the previous financial year; however there is a need for improvement on implementation of controls. The Quality of In-Year Management and Quarterly Reports Submitted in Terms of the PFMA and the Division Of Revenue Act. The Audit Committee is of the view that the quality of quarterly reports prepared and issued by the Accounting Officer of the Department during the year under review need some improvement. Evaluation of Financial Statements The Audit Committee has: • Reviewed and discussed the audited annual financial statements to be included in the annual report with the Auditor-General and the Accounting Officer; • Reviewed the department’s compliance with legal and regulatory provisions • Reviewed significant adjustments resulting from the audit. We concur with and accept the Auditor-General of South Africa’s report on the annual financial statements, and are of the opinion that the audited annual financial statements should be accepted and read together with the report of the Auditor-General South Africa. Internal audit We are satisfied that the internal audit function is operating effectively and that it has addressed the risks pertinent to the department in its audits, however it is clear from the size of the Department that the structure of the unit needs to be revisited.

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8 Report of the Audit Committee for the year ended 31 March 2013 Auditor-General South Africa We have also met with the Auditor- General South Africa to ensure that there are no unresolved issues. I would like to take this opportunity to thank my fellow Audit Committee members for their support and service given during the year under review. My special thanks also goes to the Head of Department and his Management team for their input and support during this period.

…………………………………………...... Chairperson of the Audit Committee

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8 Report of the Accounting Officer for the year ended 31 March 2013 REPORT BY THE ACCOUNTING OFFICER TO THE EXECUTIVE AUTHORITY AND PARLIAMENT/PROVINCIAL LEGISLATURE OF THE REPUBLIC OF SOUTH AFRICA.

1. General review of the state of financial affairs The Department was allocated a budget of R 3,510,977 billion during the 2012/13 financial year as compared to R 3,593,209 billion for 2011/12 financial year. The departmental budget increased by R 16,504 million during budget adjustment resulting in a total budget of R 3,527,481 billion. The above increase is as a result of an additional amount of R 16,617 million for Expanded Public Works Program (EPWP) Incentive Grant, a roll over amount of R 2,311 million, and an amount of R 2,424 million for the bursary fund. The bursary fund was transferred to the Department of Education during budget adjustment to augment a shortfall for bursary funds. 1.1 Important policy decisions and strategic issues facing the department EXCO granted approval for the filling of 43 critical postswhich included 7 Senior Management Services posts. The recruitment processes related to these posts commenced in December 2012 and most of the prospective new employees were expected to assume duties on 01 April 2013. Various reforms were introduced within the payment value chain. The submission of all invoices was centralized to the Finance Section for easy management and tracking. This approach bore immediate impact on the payment levels which improved from 99% to 100%. The spill-over effect of the accruals from 2011/12 had a significant bearing on the operations of the 2012/13 financial year. Cost curtailment measures were introduced and realized savings used to off-set these accruals. As a result, alignments were made on the approved plans and budget allocations which resulted in minimal impact on service delivery. A lot of access roads to public amenities have deteriorated as a result of the effects of flooding in the Province especially over the period 2010/11 to 2012/13. The National Department of Transport promised to appropriate the required funding in line with the South African institutional framework for natural disasters. However, the anticipated funding did not materialize which necessitated adjustments of the approved plans and alignment of the allocated budget during the year. The Department made an application to Treasury for reclassification of some roads infrastructure projects which would allow the upgrading of gravel roads to surface roads to be funded from the Provincial Roads Maintenance Grant (PRMG). An affirmative response in this regard was received late in September 2012. 1.2 Significant events that have taken place during the year The following events were conducted by the department during the 2012/2013 financial year: Name of event Municipality Date Policy and Budget Speech Mbombela 31 May 2011 Mandela Day celebration( patching of potholes) Mkhondo 18 July 2011 Mandela Day Project ( Renovation of a centre for abused Women & Bushbuckridge 21 July 2011 children and Donation of sanitary towels) Provincial Wellness Games Steve Tshwete 12 August 2011 Long Service awards Msukalikwa 02 September 2011 Launch of Provincial October Transport month programme Mbombela 04 October 2011 National Youth Service graduation ceremony Mbombela 07 October 2011 Scholar transport monitoring operation Mbombela 13 October 2011 Patching of potholes Mkhondo 18 October 2011 Opening of Ntombe foot bridge Mkhondo 18 October 2011 Opening of Acornhoek to Orpen road Bushbuckridge 21 October 2011 KAMOSO awards ceremony Emalahleni 04 November 2011 Opening of Witbank-Ogies road Emalahleni 08 November 2011

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8 Report of the Accounting Officer for the year ended 31 March 2013 1.3 The Department completed the following major projects during the year: Name of Project District Upgrading from gravel to surfaced of road D481 Mooiplaas to Ekulindeni (9.6km) Gert Sibande Construction of Goromane bridge Ehlanzeni Upgrading from gravel to surfaced of road D1869 and D1870 between Marloth Park and Ehlanzeni Komatiport (18,5km) Construction of culvert bridge at Nyongane Ehlanzeni Construction of foot bridge at Ntombe 1 Gert Sibande Construction of culvert bridge at Msogwaba (Gedlembane) Ehlanzeni Construction of culvert bridge at Daantjie Ehlanzeni Construction of culvert bridge at Newscom Ehlanzeni Construction of culvert bridge at Mambazane Ehlanzeni Construction of sidewalk at Boschofontein (4.5km) Ehlanzeni Construction of bus shelters at Senotlelo, Mabhoko B,Londing and Leufontein (4) Nkangala Construction of a workshop at Nkangala Clinical Workshop Nkangala Renovations & upgrading of psychiatric, allied, postnatal & chronic wards at Themba Hospital Ehlanzeni Construction of 30 x doctors units accommodation at Themba Hospital Ehlanzeni Construction of Repair & Renovations of existing roof and 2 wards at Middleburg Hospital Nkangala Construction of Repair & Renovations of existing roof and 2 wards at Barberton Hospital Ehlanzeni Construction of the clinic at Warburton Clinic Gert Sibande Construction of the clinic & 2x2 bedroom accommodation at Lochiel Clinic Gert Sibande Construction of new Medico-Legal Laboratory at Evander Hospital Gert Sibande Construction of 2x two bedroom house and Community Health Centre at Masibekela Ehlanzeni Community Health Centre Upgrading of water reticulation at Ermelo Hospital Gert Sibande Construction of new offices at Bethal branch office Gert Sibande Construction of 10 offices at Marapyane branch offices Nkangala Construction of library at Hluvukani Library Ehlanzeni Construction of library at Butleng Library Nkangala Eradication of 128 unsafe structures (Mud Schools) Various districts Construction of 17 Grade 12 facilities Various districts Construction of 15 storm damage schools Various districts Construction of 9 Singita school projects Various districts Construction of 1 special school Nkangala Construction of 3 technical schools Various districts Construction of 1 boarding school Gert Sibande 1.4 Spending trends The Department spent 99.9% of its adjusted budget for the 2012/13 financial year. The table below is the summary of expenditure per programme for 2012/12 financial year as well as percentage spent per programme for 2011/12 financial year; the details are disclosed in the Appropriation Statement.

Programme Adjusted budget Expenditure % Spent Expenditure % Spent 2012/2013 2012/2013 2012/13 2011/2012 2011/12 R’000 R’000 R’000 Administration 344,271 343,954 100% 452,588 100% Public Works 525,327 525,146 100% 438,549 100% Transport Infrastructure 1,630,391 1,627,451 100% 1,767,168 100% Transport Operations 988,361 987,426 100% 868,267 99.4% Community Based 39,131 39,105 100% 59,755 99.8% Programme TOTAL 3,527,481 3,523,082 99.9% 3,587,947 99.9% The Department spent R 3,523,082 billion of its adjusted budget of R3,527,481 billion for the 2012/13 financial year. In terms of the above table the Departmental spending was constant compared to previous financial year.

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8 Report of the Accounting Officer for the year ended 31 March 2013 The under expenditure of .R 4,399 000 was as a result of savings on Public Transport Operations Grant due to un-operated bus routes and the Integrated Rural Mobility Access (IRMA) project which was in progress at financial year end. The Department surrendered unspent Public Transport Operators Grant and submitted a roll over request for the IRMA project which was in progress at year end to the Provincial Treasury. 1.4.1. Reasons for under/over spending. Payment of accruals for the previous financial year contributed to the possible over expenditure. Unfunded contractual obligations for fleet services, scholar transport, audit fees, PMU, RAMS due to budget constraints. The out of court settlement to the value of R22,199 million, extra-learners and new routes introduced in the current financial year also contributed to the over expenditure. 1.4.2. Discuss the impact on programmes and service delivery There was generally an overall commitment to improve service delivery during the 2012/13 financial year. In pursuance of this, the Department spent almost its entire budget allocation for the year under review. The under-expenditure from Programme 4 had no impact on service delivery since it resulted from reconfiguration of certain routes as mentioned above. The introduction of bi-articulated buses during the year necessitated the reconfigured of certain routes. As a result, fewer buses were used to transport a large number of passengers. Several weaknesses were identified within the infrastructure delivery capacity of the Department. These resulted in under spending and denied some communities access to basic infrastructure. Nevertheless, many projects with various complexities were completed during 2012/13 financial year which means that more people now have access to roads, schools and health facilities. 1.4.3. Actions taken or planned to avoid recurrence. The following are some of the actions that the department will implement to improve spending of the appropriated budget: • Vacant budgeted posts for each financial year will be filled in the second quarter of each financial year once the improvement of conditions of service (ICS) shall have been implemented to avoid over expenditure on compensation of employees. • Programme and Project Management Unit (PMU) to submit project implementation and performance report on monthly basis. • Planning for all roads infrastructure and public transport projects will be finalized a year prior to implementation to avoid under or over expenditure on capital projects as per Infrastructure Development Improvement Plan (IDIP) circulated by the National Treasury. • The department will continue to conduct quarterly expenditure and performance reviews to monitor spending patterns.

1.5 Virement: The following virements were made after the 2012/13 budget adjustment appropriation

TRANSFER FROM TRANSFER TO AMOUNT R’000 Transport Infrastructure Administration 25,000 Public Works 42,050 Transport Operations 68,823 Total 135,873 Public Works Transport Operations 36,979 Transport Operations Community Based Programmes 400

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8 Report of the Accounting Officer for the year ended 31 March 2013 1.5.1. Reason for the virement The Department had to apply for virements, to defray anticipated over expenditure in the following programmes, Administration, Public Works, Transport Operations, and the reasons for the virement are as follows:- Payment of accruals for previous financial year which might have resulted in a possible over expenditure. Running cost for government vehicles which were transferred to the Department of Safety, Security and Liaison also contributed to the possible over expenditure. Payment of out of court settlement resulted in the high spending percentage. Under funded scholar transport contractual obligations and extra learners caused the high percentage of spending. 1.5.2. Who gave the approval for the virement to be done The Accounting Officer gave the approval of the virements and the Provincial Treasury was informed accordingly in line with Section 43.2 of the Public Finance Management Act, ACT 1 of 1999. 2. Service rendered by the department 2.1 The services rendered by the Department The services rendered by the department are discussed in Part 2 of the 2012/13 Annual Report; however these services can be summarized as follows: Programme Services Administration Provide the Department with administrative, strategic, financial and corporate support services in order to ensure that it delivers on its mandate in an integrated, efficient, effective and sustainable manner. Public Works Provide a balanced and equitable Provincial Government building infrastructure by promoting accessibility that is sustainable, integrated and environmentally sensitive which supports economic development and social empowerment. Transport Infrastructure Promote accessibility and the safe, affordable movement of people, goods and services through the delivery and maintenance of transport infrastructure that is sustainable, integrated and environmentally sensitive, and which supports and facilitates social empowerment and economic growth. Transport Operations Plan, regulate and facilitate the provision of integrated land transport services through co-ordination and co-operation with national planning authorities, CBOs, NGOs and the private sector in order to enhance the mobility of all communities particularly those currently without or with limited access. Community Based Manage the implementation of Programmes and strategies that lead to the development Programme and empowerment of communities and contractors. This includes the Provincial management and co-ordination of the Expanded Public Works Programme. 2.2 Tariff policy The tariffs charged by the Department for fees that are not governed by any Act are determined annually with the approval of the Provincial Treasury. However, fees charged in terms of the National Land Transport Act were gazetted for public comments before implementation by the Department. 2.3 Free services There were no free services rendered by the Department during the financial year under review. 3. Capacity constraints The inadequate number of technical professionals is not only limited to the department, it is a national challenge. As an attempt to retain technical staff, their remuneration was reviewed and implemented after approval by the Department of Public Service and Administration (DPSA).

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8 Report of the Accounting Officer for the year ended 31 March 2013 4. Utilisation of donor funds The department received donations, during the financial year under review, both in cash and in kind for Mandela Day celebrations and Public Infrastructure Summit. 5. Organisations to whom transfer payments have been made List all entities to which transfer payments have been made in accordance with the approved transfers in the relevant Appropriation Act. (Refer to Annexure 1A-1C of the Annual Financial Statements) 6. Corporate governance arrangements The Department of Public Works, Roads and Transport conducted a Risk Assessment workshop during the reporting period which was used to develop the 2012/13 Internal Audit Operational Plans that were approved by the Audit Committee. The Audit Committee also reviewed the internal audit reports as well as the Annual Financial Statements for 2012/13 financial year before the submission thereof to the Provincial Treasury and the Auditor General. The Senior Managers submitted their financial disclosure forms to the Public Service Commission through the Executive Authority. 7. Asset management The department has ensured that all movable, immovable, major and minor assets are included in the asset register. The asset register complies with the minimum requirements for the asset registers as per the Asset Management Framework issued by the National Treasury. 8. Events after the reporting date The Department processed invoices to the value of R 67,859 million during April and May 2013 which relate to the 2012/2013 financial year. These payments however do not form part of the 2012/13 financial year’ expenditure and are disclosed as note number 20 of the Annual Financial Statements. The department will implement cost curtailment measures and submit a budget pressure during 2013/14 financial year in order to address the above accruals. 9. Information on predetermined objectives The Department has introduced several reforms to enhance the tracking of its overall performance on regular intervals. At the core of these reforms is the ability to provide feedback on impact of implemented programmes and projects as well as forewarn the Department of potential problems. This information formed basis of developing corrective action plans and conceptualization of strategic interventions. Part of these reforms includes the introduction of Portfolios of Evidence (POE). Programmes were required to provide supporting documentation for all reported performance information. However, there were still challenges regarding implementation of the organizational file plan. The Department will identify suitable space and provide adequate budget to facilitate sound records management.

There were no data definitions from the Public Works sector thus resulting in different interpretation of related performance measures. During the year, the Strategic Planning Unit of the Department successfully developed data definitions for all performance measures contained in the Annual Performance Plan. The Department’s efforts to improve performance management were complemented by the diligent work of the oversight authorities (e.g. Treasury, Portfolio Committee, EXCO, etc.). A number of quarterly and adhoc reports were submitted to these authorities as part of improving good governance within the public service. In other instances, the Department was invited to appear before these authorities and account on its performance. These engagements were beneficial to all and instrumental in the improved performance of the Department. 87

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8 Report of the Accounting Officer for the year ended 31 March 2013 10. SCOPA resolutions There were no SCOPA resolutions taken on the 2011/12 Annual Report. 11. Prior modifications to audit reports

Subject Matters reported by the AG 2011/12 Progress to deal with issues raised financial year Material losses of R2, 595,000 were 2011/12 Emphases of matters The irrecoverable debts were written incurred as a result of irrecoverable off, and approval thereof was obtained debts written off. from the Accounting Officer. Material impairment of R10, 043,000 2011/12 Emphases of matters The matter has since been referred was incurred, as the recovery of this to Senior Council to issue letters of amounts were doubtful. demand to the debtors.(Pilgrim’s Rest) Irregular Expenditure of R61, 053,000 2011/12 Emphases of matters The Department is liaising with the was incurred in contravention of Office of the Accountant General on applicable laws and regulations. how this matter will be resolved. 12. Exemptions and deviations received from the National Treasury There were no exemptions and deviations received from the National Treasury on the compilation of the 2012/13 financial year’ Annual Financial Statements

13. Interim Financial Statements The accounting officer has submitted Interim Financial Statements for the 2012/13 financial year to the Provincial Treasury as required by practice note 5 of 2010 issued by the Accountant- General. 14. Approval The Annual Financial Statements set out on pages 15 to 92 have been approved by the Accounting Officer.

…………………… K.M MOHLASEDI HEAD OF DEPARTMENT DEPARTMENT OF PUBLIC WORKS, ROADS AND TRANSPORT

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8 Report of the Auditor-General for the year ended 31 March 2013 REPORT OF THE AUDITOR-GENERAL TO THE MPUMALANGA PROVINCIAL LEGISLATURE ON VOTE NO. 8: DEPARTMENT OF PUBLIC WORKS, ROADS AND TRANSPORT REPORT ON THE FINANCIAL STATEMENTS

Introduction 1. I have audited the financial statements of the Department of Public Works, Roads and Transport set out on pages 94 to 160, which comprise the appropriation statement, the statement of financial position as at 31 March 2013, the statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information. Accounting officer’s responsibility for the financial statements 2. The accounting officer is responsible for the preparation of these financial statements in accordance with the Departmental financial reporting framework prescribed by the National Treasury 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, 2012 (Act No. 5 of 2012) (DoRA), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor-general’s responsibility 3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the general notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion 6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Department of Public Works, Roads and Transport as at 31 March 2013 and its financial performance and cash flows for the year then ended, in accordance with the Departmental financial reporting framework prescribed by the National Treasury and the requirements of the PFMA and DoRA. Additional matter 7. I draw attention to the matter below. My opinion is not modified in respect of this matter. Financial reporting framework 8. The financial reporting framework prescribed by the National Treasury and applied by the department is a compliance framework. The wording of my opinion on a compliance framework should reflect that the financial statements have been prepared in accordance 89

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8 Report of the Auditor-General for the year ended 31 March 2013 with this framework. Section 20(2)(a) of the PAA, however, requires me to express an opinion on the fair presentation of the financial statements. The wording of my opinion therefore reflects this requirement. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 9. In accordance with the PAA and the general notice issued in terms thereof, I report the following findings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion. Predetermined objectives 10. I performed procedures to obtain evidence about the usefulness and reliability of the information in the annual performance report as set out on pages xxx to xxx of the annual report. 11. The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance is consistent with the planned objectives. The usefulness of information further relates to whether indicators and targets are measurable (i.e. well defined, verifiable, specific, measurable and time bound) and relevant, as required by the National Treasury’s Framework for managing programme performance information (FMPPI). 12. The reliability of the information in respect of the selected programmes is assessed to determine whether it adequately reflects the facts (i.e. whether it is valid, accurate and complete). 13. The material findings are as follows: Usefulness of information Consistency 14. Treasury Regulation 5.2.4 requires that the strategic plan should form the basis for the annual report, therefore requiring the consistency of objectives, indicators and targets between planning and reporting documents. A total of 85% of the reported objectives were not consistent with the objectives as per the approved strategic and annual performance plan. This was due to a lack of oversight responsibility by the leadership over performance management. Reliability of information 15. The NTFMPPI requires that institutions should have appropriate systems to collect, collate, verify and store performance information to ensure valid, accurate and complete reporting of actual achievements against planned objectives, indicators and targets. 16. Significantly important targets with respect to the public works programme were materially misstated when compared to the source information and evidence provided. This was due to a lack of standard operating procedures for the accurate recording of actual achievements. 17. The information presented with respect to the transport infrastructure programme was not reliable when compared to the source information provided. This was due to a lack of monitoring of the completeness of source documentation in support of actual achievements. 18. Significantly important targets with respect to the transport operations programme were materially misstated when compared to the source information and evidence provided. This was due to a lack of standard operating procedures for the accurate recording of actual achievements.

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8 Report of the Auditor-General for the year ended 31 March 2013 19. I was unable to obtain the information and explanations I considered necessary to satisfy myself as to the reliability of information presented with respect to the community-based programme. This was due the fact that the institution could not provide sufficient appropriate evidence in support of the information presented with respect to the community-based programme. Additional matter 20. I draw attention to the matter below. This matter does not have an impact on the audit findings on predetermined objectives reported above. Achievement of planned targets 21. Of the total number of 89 targets planned for the year, 44 were not achieved during the year under review. This means that 49% of the total planned targets were not achieved during the year under review. This was as a result of the department not considering relevant systems and evidential requirements during the annual strategic planning process. Compliance with laws and regulations 22. I performed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding financial matters, financial management and other related matters. My findings on material non-compliance with specific matters in key applicable laws and regulations as set out in the general notice issued in terms of the PAA are as follows: Annual financial statements, performance report and annual report 23. The financial statements submitted for auditing were not prepared in accordance with generally recognised accounting practice as prescribed by the National Treasury and were not supported by full and proper records, as required by section 40(1)(b) of the PFMA. Material misstatements of non-current assets and disclosure items identified by the auditors in the submitted financial statements were subsequently corrected, resulting in the financial statements receiving an unqualified audit opinion. Expenditure management 24. Payments due to creditors (including intergovernmental claims) were not settled within 30 days from receipt of an invoice or, in the case of civil claims, from the date of settlement or court judgement. 25. The accounting officer did not take effective steps to prevent unauthorised, irregular as well as fruitless and wasteful expenditure. Human resource management 26. Appointments were made without the recommendation of a selection committee, in contravention of Public Service Regulation I/VII/D1.4. 27. Employees were appointed without properly verifying the claims in their applications, in contravention of Public Service Regulation 1/VII/D.8. 28. The accounting officer did not ensure that all leave taken by employees were recorded accurately and in full, as required by Public Service Regulation 1/V/F(b). 29. The accounting officer did not implement effective measures to ensure that employees did not abuse sick leave, as required by Public Service Regulation 1/V/F(c). 30. Employees were compensated for overtime work that had not been approved in advance, as required by Public Service Regulation 1/V/D.2(c). 31. Funded vacant posts were not filled within 12 months, as required by Public Service Regulation 1/VII/C.1A.2.

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8 Report of the Auditor-General for the year ended 31 March 2013 32. Employees acted in higher vacant posts for more than 12 months, in contravention of Public Service Regulation 1/VII/B.5.3. 33. A performance management system was not in place for employees other than senior managers, as required by Public Service Regulation I/III/B1. 34. Employees acted in higher vacant posts for more than 12 months, in contravention of Public Service Regulation 1/VII/B.5.3. Procurement and contract management 35. Contracts were awarded to bidders who did not submit a declaration of past supply chain practices, such as fraud, abuse of the supply chain management system and non- performance, contrary to Treasury Regulation 16A9.2. 36. Contracts and quotations were awarded to suppliers whose tax matters had not been declared by the South African Revenue Service to be in order, as required by Treasury Regulation 16A9.1(d) and the Preferential Procurement Regulations. 37. Persons in the service of the department who had a private or business interest in contracts awarded by the department failed to disclose such interest, as required by Treasury Regulation 16A8.4 and Public Service Regulation 3C. Strategic planning and performance management 38. In terms of section 38(1)(a)(i) of the PFMA, the accounting officer must ensure that the department has and maintains effective, efficient, and transparent systems of financial and risk management and internal control. However, the department did not have and maintain an effective and efficient system of internal control regarding performance management, which described and represented how the department’s processes of performance monitoring, measurement, review and reporting should be conducted, organised and managed. Service delivery – public works 39. The appointed project managers were not registered with the South African Council for the Project and Construction Management Professions, as required by sections 18(2) and 19 of the Project and Construction Management Professions Act of South Africa, 2000 (Act No. 48 of 2000). 40. The department expanded or varied orders against the original contract by R3 940 435, which was more than the prescribed threshold for the expansion or variation without prior written approval by the relevant treasury, in contravention of paragraph 3.9.4 of the National Treasury’s instruction note on enhancing compliance monitoring and improving transparency and accountability in supply chain management as well as section 38(1)(b) of the PFMA, resulting in irregular expenditure of R3 940 435.

Internal control 41. I considered internal control relevant to my audit of the financial statements, performance report and compliance with laws and regulations. The matters reported below under the fundamentals of internal control are limited to the significant deficiencies that resulted in the findings on the annual performance report and the findings on compliance with laws and regulations included in this report.

Leadership 42. The department did not have sufficient monitoring controls to ensure the proper implementation of the overall reporting process. 43. The leadership did not exercise oversight responsibility regarding financial and performance reporting and compliance as well as related internal controls.

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8 Report of the Auditor-General for the year ended 31 March 2013 Financial and performance management 44. The department did not prepare regular, accurate and complete financial and performance reports that were supported and evidenced by reliable information. 45. Management did not review and monitor compliance with applicable laws and regulations. 46. The department did not implement proper record keeping in a timely manner to ensure that complete, relevant and accurate information was accessible and available to support financial and performance reporting. 47. The department did not implement controls over daily and monthly processing and reconciling of transactions. 48. The department did not design and implement formal controls over IT systems to ensure the reliability of the systems and the availability, accuracy and protection of information. Governance 49. The internal audit unit did not identify internal control deficiencies and recommend corrective action effectively. OTHER REPORTS

INVESTIGATIONS Investigations completed during the financial year 50. An investigation was conducted on request of the department. The investigation was initiated based on an allegation of the possible irregular issuing and processing of taxi operating permits or licences without following proper procedures by employees. The investigation resulted in criminal proceedings being instituted against two employees. PERFORMANCE AUDIT

Performance audit on the readiness of government to report on its performance 51. A performance audit was conducted on the readiness of government to report on its performance. The focus of the audit was on how government institutions are guided and assisted to report on their performance, as well as the systems and processes that they have put in place. The management report on the audit was issued during the year.

Nelspruit 31 July 2013

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3,969 4,691 8,193 2,595 R’000 11,770 75,203 Actual 436,849 962,147 797,330 358,655 Expenditure

2011/12 Final 3,970 5,894 8,083 2,600 R’000 11,754 74,274 436,935 960,842 798,796 358,419

Appropriation

% 97.7% 92.8% 98.3% 99.7% 99.9% 100.0% 100.0% 100.0% 100.0% 100.0% Expenditure Expenditure as % of final final of % as appropriation - -

2 93 86 112 112 396 179 2,458 R’000 Variance

4,795 1,453 6,678 4,893 2,502 R’000 e 78,713 Actual 905,908 336,054 714,148 439,755 Expenditure

Final 4,907 1,565 6,678 4,979 2,502 R’000 78,715 Vote 8: 908,366 336,147 714,544 439,934

Appropriation Mpumalanga Province Appropriation per Programm per Appropriation Appropriation Statement

167 728 (15) 2,798 2,502 1,145 R’000 for the year ended 31 March 2013 2012/13 39,792 24,910 (3,258) Virement (174,909)

Department of Public Works, Roads and Transport ------

R’000 Funds Shifting of of Shifting

4,740 1,580 3,880 8,237 R’000 77,570 868,574 311,237 439,206 889,453 Adjusted Adjusted

Appropriation T A P T

Payment for capital capital for Payment assets Transfers and subsidies and Transfers Payment for capital capital for Payment assets Payment for financial financial for Payment assets 1. DMINISTRATION payment Current 2. WORKS UBLIC payment Current 3. INFRASTRUCTURE RANSPORT Payment for capital capital for Payment assets Current payment Current subsidies and Transfers APPROPRIATION STATEMEN Transfers and subsidies and Transfers

Annual Report 201213.indb 94 8/19/2013 7:56:57 AM ANNUAL

- -

363 363 R’000 19,433 59,392 Actual 412,130 433,607 3,587,947 3,586,327 1,620 Expenditure

2011/12 370 370 100 Final R’000 21,709 59,385 59,385 411,220 437,238 3,593,209 3,591,589 1,620

Appropriation

% 77.2% 95.7% 99.9% 99.9%

100.0% 100.2% 100.0% 100.0% Expenditure Expenditure as % of final final of % as appropriation

- -

87 87 155 173 607 (61) 4,399 4,399 R’000 - Variance

- -

294 294 R’000 38,811 13,566 Actual 509,590 464,270 3,523,082 3,521,430 1,652 Expenditure

- -

381 381 Final R’000 38,750 38,750 14,173 Vote 8: 509,745 464,443 3,527,481 3,525,829 1,652

Appropriation Mpumalanga Province Appropriation per Programme per Appropriation

Appropriation Statement - - -

81 81 62 319 (62) (143) 6,840 R’000 for the year ended 31 March 2013 2012/13 99,105 Virement

Department of Public Works, Roads and Transport

------

R’000 Funds

Shifting of of Shifting

- -

300 300 R’000 38,431 14,316 410,640 457,603 Adjusted Adjusted 3,527,481 3,525,767 1,714

Appropriation 4. TRANSPORT TRANSPORT 4. OPERATIONS payment Current subsidies and Transfers TOTAL Statutory Statutory Appropriation payment Current Payment for capital capital for Payment assets financial for Payment assets Subtotal 5. COMMUNITY COMMUNITY 5. BASED PROGRAMMES payment Current APPROPRIATION STATEMENT Payment for capital capital for Payment assets

Annual Report 201213.indb 95 8/19/2013 7:56:57 AM ANNUAL Actual 3,587,947 Expenditure 2012/13 Final 3,615,439 3,615,439 Appropriation 2012/13 Actual 3,523,082 Expenditure Final 25,848 3,553,329 3,527,481 Vote 8: Appropriation Mpumalanga Province Appropriation Statement for the year ended 31 March 2013 Department of Public Works, Roads and Transport Actual amounts per Statement of Financial Performamnce (Total Expenditure) (Total Performamnce Financial of Statement per amounts Actual Reconcilliation with statement of financial performance ADD reciepts Departmental Revenue) (Total Performance Financial of Statement per amounts Actual TOTAL (Brought Forward) (Brought TOTAL

Annual Report 201213.indb 96 8/19/2013 7:56:58 AM ANNUAL 2,595 R’000

13,477 27,024 73,963 Actual 433,607 971,380 751,720 1,314,181 3,587,947 expenditure 2011/12 Final 2,600 R’000

73,964 12,463 27,244 752,933 437,138 972,118 1,314,749 3,593,209 Appropriation % 99.9% 96.4% 99.7% 97.7% 99.9% 100.0% 100.0% 100.0% 100.0% as % of final final of % as Expenditure appropriation - - 85 289 209 540 221 3,055 R’000 4,399 Variance

7,734 8,713 2,502 R’000

76,870 Actual 770,852 464,724 922,528 1,269,159 3,523,082 Expenditure Vote 8: Final 8,023 8,922 2,502 R’000

76,870 771,392 464,809 925,583 1,269,380 3,527,481 As at 31 March 2013 Mpumalanga Province Appropriation Appropriation Statement - - Appropriation per economic classification economic per Appropriation 2012/13 7,306 2,502 R’000 44,019 (2,594) (1,324)

(21,008) (28,901) Virement Department of Public Works, Roads and Transport ------R’000 Shifting of Funds of Shifting - R’000 76,870 10,617 10,246 457,503 881,564 792,400 Adjusted 1,298,281 3,527,481 Appropriation

Current Current payments Compensation employees of and Goods services and Transfers subsidies and Provinces municipalities Public corporations private and enterprises Households of Payment assets capital and Buildings fixed other structures and Machinery equipment for Payments assets financial Economic Economic Classification TOTAL

Annual Report 201213.indb 97 8/19/2013 7:56:58 AM ANNUAL 1,620 1,620 R’000 1,620 1,620 R’000 Actual Actual expenditure expenditure 2011/12 2011/12 Final Final 1,620 1,620 R’000 1,620 1,620 R’000 Appropriation Appropriation % % 100.0% 100.0% 100.0% 100.0% as % of final final of % as as % of final final of % as Expenditure Expenditure appropriation appropriation - - - - R’000 R’000 Variance Variance 1,652 1,652 R’000 1,652 1,652 R’000 Actual Actual Expenditure Expenditure Final Final 1,652 1,652 R’000 1,652 1,652 R’000 Vote 8: Appropriation Appropriation Statutory Appropriation Statutory (62) (62) (62) (62) As at 31 March 2013 R’000 R’000 Mpumalanga Province Appropriation Statement Virement Virement 2012/13 2012/13 - - - - Statutory Appropriation per economic classification economic per Appropriation Statutory R’000 R’000 Department of Public Works, Roads and Transport Shifting of Funds of Shifting Shifting of Funds of Shifting 1,714 1,714 1,714 1,714 R’000 R’000 Adjusted Adjusted Appropriation Appropriation Direct changes against the the against changes Direct Revenue National/Provincial Fund Member of executive committee/parliamentary officers TOTAL TOTAL Current payments Compensation of employees Program 1 per economic economic per 1 Program classification

Annual Report 201213.indb 98 8/19/2013 7:56:58 AM ANNUAL - -

15 161 3,969 4,284 3,081 R’000 11,594 Actual 429,484 452,588 expenditure - -

15 2011/12 250 Final 3,970 4,284 3,031 R’000 11,489 429,620 452,659 Appropriation -

% 92.7% 99.1% 59.3% 98.9% 99.0% 99.9% 100.0% 100.0% 100.0% as % of final final of % as Expenditure appropriation - - -

5 55 61 51 33 112 317 R’000 Variance -

89 16 33 1,420 5,952 4,690 3,318 R’000 Actual 326,784 342,302 Expenditure -

16 33 150 Vote 8: Final 1,532 6,007 4,741 3,351 R’000 326,789 342,619 As at 31 March 2013 Appropriation Mpumalanga Province Appropriation Statement - -

16 33 2012/13 151 (48) R’000 27,678 25,062 (1,554) (1,214) Virement Department of Public Works, Roads and Transport -

R’000 Shifting of Funds of Shifting - - -

150 1,580 7,561 4,590 4,565 R’000 299,111 317,557 Adjusted Appropriation Transfers and and Transfers subsidies programme Detail per sub- programme OF OFFICE 1.1 MEC THE Current payment 1.2 1.2 MANAGEMENT THE OF DEPARTMENT Current payment Current Current payment Payment for for Payment assets capital TOTAL Transfers and and Transfers subsidies Payment for for Payment assets capital 1.3 CORPORATE CORPORATE 1.3 SUPPORT Payment for for Payment assets capital Transfers and and Transfers subsidies

Annual Report 201213.indb 99 8/19/2013 7:56:58 AM ANNUAL - 31 3,969 R’000 11,739 Actual 202,557 235,912 454,208 expenditure - - 2011/12 Final 3,970 R’000 11,754 202,789 235,766 454,279 Appropriation % 100% 97.6% 92.8% 99.9% 100.0% 100.0% 100.0% as % of final final of % as Expenditure appropriation - - 50 43 112 112 317 R’000 Variance 9 151 4,644 1,444 R’000 Actual 113,727 223,979 343,954 Expenditure 9 151 Vote 8: Final 4,756 1,556 R’000 113,777 224,022 344,271 As at 31 March 2013 Appropriation Mpumalanga Province Appropriation Statement 9 16 2012/13 151 (24) R’000 28,148 25,000 (3,300) Virement Department of Public Works, Roads and Transport ------R’000 Shifting of Funds of Shifting - - 4,740 1,580 R’000 85,629 227,322 319,271 Adjusted Appropriation Current Current payments Compensation employees of Goods and and Goods services and Transfers subsidies Public Corporations & Private Enterprises Programme 1 Programme Economic per classification TOTAL Machinery & equipment Households Payment for capital assets Buildings & other fixed structures

100

Annual Report 201213.indb 100 8/19/2013 7:56:58 AM ANNUAL - - 119 255 4,317 3,227 R’000 18,261 19,386 12,398 75,203 Actual 305,383 438,549 expenditure - - 2011/12 200 Final 1,330 4,364 3,240 R’000 18,297 18,168 12,472 74,274 306,242 438,587 Appropriation - % 99.5% 92.5% 99.8% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% as % of final final of % as Expenditure appropriation ------3 36 83 60 (1) 181 R’000 Variance - 37 58 72 6,548 2,970 R’000 17,893 25,291 15,116 78,676 Actual 378,485 525,146 Expenditure - 40 58 72 Final 6,548 2,970 R’000 17,976 25,351 15,116 78,675 Vote 8: 378,521 525,327 Appropriation As at 31 March 2013 Mpumalanga Province Appropriation Statement 40 75 395 (55) (62) (78) (924) 7,600 1,105 2,993 4,671 R’000 2012/13 (6,418) Virement Department of Public Works, Roads and Transport ------R’000 Shifting of Funds of Shifting - 55 120 150 3,555 2,895 R’000 18,900 17,751 14,721 77,570 384,939 520,656 Adjusted Appropriation

Payment for capital assets 2.5. PROPERTY MANAGEMENT Current payment Payment for capital assets 2.4. MAINTENANCE Current payment Transfers and subsidies Payment for capital assets 2.3. CONSTRUCTION Current payment Payment for capital assets TOTAL 2.2. DESIGN Current payment Transfers and subsidies 2.1. PROGRAMME SUPPORT Current payment Detail Detail programme per sub-

101

Annual Report 201213.indb 101 8/19/2013 7:56:58 AM ANNUAL - - 3,240 1,240 1,451 R’000 73,963 Actual 211,330 147,325 438,549 expenditure - - 2011/12 310 Final 1,700 2,984 R’000 73,964 211,520 148,109 438,587 Appropriation - - % 99.9% 99.9% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% as % of final final of % as Expenditure appropriation ------2 59 120 181 R’000 Variance - - 497 5,678 1,346 1,000 R’000 76,870 Actual 220,830 218,925 525,146 Expenditure - - 497 Vote 8: Final 5,678 1,348 1,000 R’000 76,870 220,889 219,045 525,327 As at 31 March 2013 Mpumalanga Province Appropriation Appropriation Statement - - 2012/13 497 648 4,399 4,640 4,671 R’000 (3,912) (1,601) Virement Department of Public Works, Roads and Transport ------R’000 Shifting of Funds of Shifting - - - 700 1,279 2,601 R’000 76,870 214,405 224,801 520,656 Adjusted Appropriation Payment for capital assets Buildings & other fixed structures Machinery & equipment Public corporations & private enterprises Households Gifts and donations Transfers & subsidies Provinces & municipalities Goods and services Interest and rent on land Program 2 Program Economic per classification Current payments Compensation of employees TOTAL

102

Annual Report 201213.indb 102 8/19/2013 7:56:59 AM ANNUAL 61 40 37 90 127 8,029 1,454 2,595 R’000 16,403 37,211 45,869 Actual 778,795 696,393 183,161 1,770,265 expenditure - - 40 11 92 2011/12 Final 8,083 1,455 2,600 R’000 16,679 37,307 45,900 778,646 697,455 182,053 1,770,321 Appropriation % 97.3% 99.6% 99.6% 99.9% 99.8% 99.7% 98.4% 87.6% 99.8% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% as % of final final of % as Expenditure appropriation - - - 5 16 89 28 43 19 43 70 193 (12) 2,446 2,940 R’000 Variance 42 16 584 6,431 4,267 2,502 1,359 R’000 24,688 25,729 48,090 10,209 49,427 Actual 820,527 633,580 1,627,451 Expenditure 42 16 600 Final 6,459 4,337 2,502 1,552 R’000 24,777 25,717 10,228 48,133 49,432 822,973 633,623 Vote 8: 1,630,391 Appropriation As at 31 March 2013 42 16 Mpumalanga Province 600 Appropriation Statement (204) 4,500 5,872 2,502 R’000 25,717 10,228 47,832 (3,900) (44,001) (31,100) Virement (153,977) 2012/13 (135,873) ------Department of Public Works, Roads and Transport R’000 Shifting of Funds of Shifting ------8,237 1,600 1,756 R’000 20,277 37,559 42,261 866,974 787,600 Adjusted 1,766,264 Appropriation Detail per sub-programme sub-programme per Detail Payment for capital assets 3.4. CONSTRUCTION Current payment Transfers and subsidies 3.3. DESIGN Current payment Transfers and subsidies Payment for capital assets 3.5. MAINTENANCE Current payment Transfers and subsidies Payment for capital assets 3.1. PROGRAMME SUPPORT Current payment Payment for capital assets 3.2. ROAD PLANNING Current payment Payment for capital assets Payment for financial assets TOTAL

103

Annual Report 201213.indb 103 8/19/2013 7:56:59 AM ANNUAL 2,595 8,193 10,488 951,659 515,790 281,540 1,770,265 R’000 Actual expenditure 2011/12 9,185 2,600 8,083 951,657 516,524 282,272 1,770,321 Final R’000 Appropriation 99.8% 98.3% 99.7% 99.9% 99.8% 100.0% 100.0% % as % of final final of % as Expenditure appropriation - 4 87 40 355 2,454 2,940 R’000 Variance 1,919 2,502 4,892 447,944 903,989 266,205 1,627,451 R’000 Actual Expenditure 2,502 1,923 4,979 Vote 8: 447,984 906,443 266,560 1,630,391 Final R’000 Appropriation As at 31 March 2013 Mpumalanga Province Appropriation Statement 323 2,502 39,469 2012/13 (3,258) (11,966) (162,943) (135,873) R’000 Virement Department of Public Works, Roads and Transport - - - - - R’000 Shifting of Funds of Shifting - 1,600 8,237 866,974 610,927 278,526 1,766,264 R’000 Adjusted Appropriation Programme 3 per per 3 Programme Economic classification Economic Payment for financial assets TOTAL Machinery & equipment Transfers & subsidies Households Payment for capital assets Buildings & other fixed structures Goods and services Current payments Compensation of employees

104

Annual Report 201213.indb 104 8/19/2013 7:56:59 AM ANNUAL - 18 10 48 169 6,790 1,922 1,618 1,560 R’000 15,724 24,992 12,375 Actual 366,413 433,531 865,170 expenditure - - 10 48 134 2011/12 Final 6,814 1,924 1,625 1,560 R’000 18,026 24,991 12,410 365,445 437,180 870,167 Appropriation - - - % 95.5% 99.5% 12.0% 99.2% 99.9% 99.9% 99.2% 99.9% 100.0% 100.0% 100.0% 100.0% as % of final final of % as Expenditure appropriation - - - - - 6 30 88 30 24 59 85 12 601 935 R’000 Variance - - - 12 11 744 101 6,590 1,486 R’000 12,710 21,216 17,360 Actual 462,938 464,258 987,426 Expenditure - - - 11 100 750 101 Final 6,620 1,498 R’000 13,311 21,246 17,384 464,343 462,997 988,361 Vote 8: Appropriation - - - 50 11 (55) (99) (50) (980) 6,840 2,035 R’000 As at 31 March 2013 (2,030) (2,640) Mpumalanga Province 102,720 105,802 Appropriation Statement Virement 2012/13 ------R’000 Department of Public Works, Roads and Transport Shifting of Funds of Shifting - - - 50 700 100 200 7,600 3,528 R’000 13,366 15,349 23,886 457,503 360,277 882,559 Adjusted Appropriation

TOTAL Payment for capital assets Payment for capital assets 4.5. INFRASTRUCTURE OPERATIONS Current payment Transfers and subsidies Transfers and subsidies Transfers and subsidies 4.4. TRANSPORT SYSTEMS Current payment Payment for capital assets Transfers and subsidies Payment for capital assets 4.3. TRANSPORT SAFETY AND COMPLIANCE Current payment 4.1. PROGRAMME SUPPORT OFFICE Current payment Detail per sub-programme sub-programme per Detail Payment for capital assets 4.2. PUBLIC TRANSPORT SUBSIDIES Current payment

105

Annual Report 201213.indb 105 8/19/2013 7:56:59 AM ANNUAL 75 2,983 R’000 16,450 39,257 Actual 433,607 372,798 865,170 expenditure 2011/12 100 Final 2,948 R’000 18,761 39,319 437,138 371,901 870,167 Appropriation % 37.1% 95.5% 99.3% 99.8% 99.9% 100.0% 100.0% as % of final final of % as Expenditure appropriation 6 88 85 70 85 601 935 R’000 Variance 52 856 R’000 12,710 41,385 Actual 464,218 468,205 987,426 Expenditure 862 140 Final R’000 13,311 41,455 Vote 8: 464,303 468,290 988,361 Appropriation As at 31 March 2013 Mpumalanga Province - 40 (143) 6,800 R’000 Notes to Appropriation Statement 2012/13 (2,230) 101,335 105,802 Virement Department of Public Works, Roads and Transport ------R’000 Shifting of Funds of Shifting 100 1,005 R’000 13,311 43,685 457,503 366,955 882,559 Adjusted Appropriation TOTAL Payment for capital assets Buildings & other fixed structures Machinery & equipment Households Transfers & subsidies Public corporations & private enterprises Current payments Compensation of employees Goods and services Programme 4 Programme Economic per classification

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Annual Report 201213.indb 106 8/19/2013 7:56:59 AM ANNUAL - - 56 51 256 1,286 R’000 35,296 11,742 11,068 59,755 Actual expenditure - 57 51 100 262 2011/12 Final 1,186 R’000 35,301 11,781 11,117 59,855 Appropriation - - % 93.7% 99.9% 67.0% 99.9% 100.0% 109.2% 100.8% 100.0% as % of final final of % as Expenditure appropriation - - - 6 87 99 26 (6) (6) (154) R’000 Variance - 6 16 71 201 1,304 8,525 R’000 10,093 18,889 39,105 Actual Expenditure - - 16 65 300 Final 1,391 8,525 R’000 10,099 18,735 39,131 Vote 8: Appropriation - - - 16 65 400 400 (16) As at 31 March 2013 1,391 R’000 Mpumalanga Province (1,456) Appropriation Statement Virement 2012/13 ------R’000 Department of Public Works, Roads and Transport Shifting of Funds of Shifting - - - - 300 1,407 9,699 9,981 R’000 17,344 38,731 Adjusted Appropriation 5.1. PROGRAMME SUPPORT Current payment Payment for capital assets Detail per sub-programme sub-programme per Detail Payment for financial assets 5.2. COMMUNITY DEVELOPMENT Current payment 5.3. INNOVATION AND EMPOWERMENT Current payment Payment for capital assets 5.4. EPWP CO-ORDINATION AND MONITORING Current payment Payment for capital assets Payment for capital assets TOTAL

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Annual Report 201213.indb 107 8/19/2013 7:57:00 AM ANNUAL 363 R’000 17,036 42,356 59,755 Actual expenditure 2011/12 373 Final R’000 17,033 42,449 59,855 Appropriation % 99.9% 77.2% 99.9% 100.4% as % of final final of % as Expenditure appropriation 13 87 26 (74) R’000 Variance 294 R’000 18,453 20,358 39,105 Actual Expenditure 381 Final R’000 20,284 18,466 39,131 Appropriation Vote 8: 81 400 400 (81) R’000 As at 31 March 2013 Mpumalanga Province Appropriation Statement Virement 2012/13 - - - - R’000 Department of Public Works, Roads and Transport Shifting of Funds of Shifting 300 R’000 20,365 18,066 38,731 Adjusted Appropriation Programme 5 per Economic Economic per 5 Programme classification Goods and services Payment for capital assets Machinery & equipment Current payments Compensation of employees TOTAL

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Notes to Appropriation Statement for the year ended 31 March 2013 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,B and D) 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 financial assets to the Annual Financial Statements. 4. Explanations of material variances from Amounts Voted (after Virement):

4.1 Per programme Final Actual Variance R’000 Variance as a % of Appropriation Expenditure Final Appropriation

Administration 342,619 342,302 317 0% Public Works 525,327 525,146 181 0% Transport Infrastructure 1,630,391 1,627,451 2,940 0% Transport Operations 988,361 987,426 935 0% Community Based Programmes 39,131 39,105 26 0%

Explanations The figures above show that there were no material variances from the amounts voted (after virements). However, there were savings on Transport Infrastructure and Transport Operations that needed some comments: Savings on Transport Infrastructure is as a result of delaying invoices by contractors. The department surrendered unspent funds and submitted a roll-over request for an amount of R 2,502 million for D3696 Xhimongwe Thimeli and Oakley project which was in progress at the end of the financial year. Savings on Transport Operations is as a result of delaying invoices by contractors. The department surrendered unspent funds and submitted a roll-over request for an amount of R0,582 million for the IRMA projects which were in progress at the end of the financial year.

4.2 Per economic classification Final Actual Variance Variance as Appropriation Expenditure a % of Final Appropriation R’000 R’000 R’000 R’000 Current payments Compensation of employees 771,392 770,852 540 0% Goods and services 1,269,380 1,269,159 221 0%

Transfers and subsidies Provinces and municipalities 76,870 76,870 - 0% Public corporations and private 464,809 464,724 85 0% enterprises Households 8,023 7,734 289 4%

Payments for capital assets Buildings and other fixed structures 925,583 922,528 3,055 0% Machinery and equipment 8,922 8,713 209 2%

Payments for financial assets 2,502 2,502 - 0%

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Notes to Appropriation Statement for the year ended 31 March 2013 4.3 Per conditional grant Final Actual Variance Variance as Appropriation Expenditure a % of Final Appropriation R’000 R’000 R’000 R’000

Public Works Dev Prop Rate Fun Grn Pr 76,870 76,870 - 0% Epwp Incent Grnt 16,617 16,617 - 0%

Transport Prov Roads Maint Grant 1,240,694 1,240,694 - 0% Public Transprt Operations Grant 439,003 439,003 - 0%

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Statement of Financial Performance for the year ended 31 March 2013 PERFORMANCE Note 2012/13 2011/12 R’000 R’000 REVENUE Annual appropriation 1 3,525,829 3,591,589 Statutory appropriation 2 1,652 1,620 Departmental revenue 3 25,848 22,230

TOTAL REVENUE 3,553,329 3,615,439

EXPENDITURE Current expenditure Compensation of employees 4 770,852 751,720 Goods and services 5 1,269,159 1,314,181 Total current expenditure 2,040,011 2,065,901

Transfers and subsidies Transfers and subsidies 7 549,328 521,047 Total transfers and subsidies 549,328 521,047

Expenditure for capital assets Tangible capital assets 8 931,241 998,404 Total expenditure for capital assets 931,241 998,404

Payments for financial assets 6 2,502 2,595

TOTAL EXPENDITURE 3,523,082 3,587,947

SURPLUS/(DEFICIT) FOR THE YEAR 30,247 27,492

Reconciliation of Net Surplus/(Deficit) for the year Voted funds 4,399 5,262 Annual appropriation 4,399 2,123 Conditional grants - 3,139

Departmental revenue and NRF Receipts 3 25,848 22,230

SURPLUS/(DEFICIT) FOR THE YEAR 30,247 27,492

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Statement of Financial Position for the year ended 31 March 2013

POSITION Note 2012/13 2011/12 R’000 R’000 ASSETS

Current assets 30,001 69,837 Unauthorised expenditure 9 2,214 4,875 Fruitless and wasteful expenditure 10 4,052 4,052 Receivables 11 23,735 60,910

TOTAL ASSETS 30,001 69,837

LIABILITIES

Current liabilities 23,090 60,401 Voted funds to be surrendered to the Revenue Fund 12 4,399 - Departmental revenue and NRF Receipts to be surrendered 13 3,305 7,532 to the Revenue Fund Bank overdraft 14 14,988 20 Payables 15 398 52,849

TOTAL LIABILITIES 23,090 60,401

NET ASSETS 6,911 9,436

Represented by: Recoverable revenue 6,911 9,436

TOTAL 6,911 9,436

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Statement of Changes in Net Assets for the year ended 31 March 2013

NET ASSETS Note 2012/13 2011/12 R’000 R’000

Recoverable revenue Opening balance 9,436 13,597 Transfers: (2,525) (4,161) Irrecoverable amounts written off (2,145) (2,595) Debts revised (52) - Debts recovered (included in departmental receipts) (586) (1,566) Debts raised 258 - Closing balance 6,911 9,436

TOTAL 6,911 9,436

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Cash Flow Statement As at 31 March 2013 CASH FLOW Note 2012/13 2011/12 R’000 R’000 CASH FLOWS FROM OPERATING ACTIVITIES Receipts 3,552,395 3,612,980 Annual appropriated funds received 1 3,525,829 3,591,589 Statutory appropriated funds received 2 1,652 1,620 Departmental revenue received 3 24,914 19,771 Net (increase)/decrease in working capital (49,092) 70,786 Surrendered to Revenue Fund 6,402 121,194 Current payments (2,040,011) (2,065,901) Payments for financial assets (2,502) (2,595) Transfers and subsidies paid (549,328) (521,047) Net cash flow available from operating activities 16 917,864 1,215,421

CASH FLOWS FROM INVESTING ACTIVITIES Payments for capital assets 8 (931,241) (998,404) Proceeds from sale of capital assets 3.4 934 2,459 Net cash flows from investing activities (930,307) (995,945)

CASH FLOWS FROM FINANCING ACTIVITIES Increase/(decrease) in net assets (2,525) (4,161) Net cash flows from financing activities (2,525) (4,161)

Net increase/(decrease) in cash and cash equivalents (14,968) 215,315

Cash and cash equivalents at beginning of period (20) (215,335)

Cash and cash equivalents at end of period 28 (14,988) (20)

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Notes to the Annual Financial Statements for the year ended 31 March 2013 The Financial Statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. However, where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the Financial Statements and to comply with the statutory requirements of the Public Finance Management Act, Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the Act and the Division of Revenue Act, Act 1 of 2010. 1. Presentation of the Financial Statements 1.1 Basis of preparation The financial statements have been prepared on a modified cash basis of accounting. Under this basis, the effects of transactions and other events are recognised in the financial records when the resulting cash is received or paid. The “modification” results from the recognition of certain near-cash balances in the financial statements as well as the revaluation of foreign investments and loans and the recognition of resulting revaluation gains and losses. In addition supplementary information is provided in the disclosure notes to the financial statements where it is deemed to be useful to the users of the financial statements.

1.1 Presentation currency All amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department. 1.2 Rounding Unless otherwise stated all financial figures have been rounded to the nearest one thousand Rand (R’000). 1.3 Comparative figures Prior period comparative information has been presented in the current year’s financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format of the current year’s financial statements. 1.4 Comparative figures - Appropriation Statement A comparison between actual amounts and final appropriation per major classification of expenditure is included in the Appropriation Statement. 2. Revenue 2.1 Appropriated funds Appropriated funds comprises of departmental allocations as well as direct charges against revenue fund (i.e. statutory appropriation). Appropriated funds are recognised in the financial records on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the financial records on the date the adjustments become effective. Unexpended appropriated funds are surrendered to the National/Provincial Revenue Fund. Any amounts owing to the National/Provincial Revenue Fund at the end of the financial year are recognised as payable in the statement of financial position. Any amount due from the National/Provincial Revenue Fund at the end of the financial year is recognised as a receivable in the statement of financial position.

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Notes to the Annual Financial Statements for the year ended 31 March 2013 2.2 Departmental revenue All departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise. Any amount owing to the National/Provincial Revenue Fund at the end if the financial year is recognised as a payable in the statement of financial position. No accrual is made for amounts receivable from the last receipt date to the end of the reporting period. These amounts are however disclosed in the disclosure notes to the annual financial statements. 2.3 Direct Exchequer receipts All direct exchequer receipts are recognised in the statement of financial performance when the cash is received and is subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise. Any amount owing to the National/Provincial Revenue Funds at the end of the financial year is recognised as a payable in the statement of financial position. 2.4 Direct Exchequer payments

All direct exchequer payments are recognised in the statement of financial performance when final authorisation for payment is effected on the system (by no later than 31 March of each year). 3. Expenditure 3.1 Compensation of employees 3.1.1 Salaries and wages Salaries and wages are expensed in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). Other employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements at its face value and are not recognised in the statement of financial performance or position. Employee costs are capitalised to the cost of a capital project when an employee spends more than 50% of his/her time on the project. These payments form part of expenditure for capital assets in the statement of financial performance. 3.1.2 Social contributions Employer contributions to post employment benefit plans in respect of current employees are expensed in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). No provision is made for retirement benefits in the financial statements of the department. Any potential liabilities are disclosed in the financial statements of the National Revenue Fund and not in the financial statements of the employer department. Employer contributions made by the department for certain of its ex-employees (such as medical benefits) are classified as transfers to households in the statement of financial performance.

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Notes to the Annual Financial Statements for the year ended 31 March 2013 3.2 Goods and services Payments made during the year for goods and/or services are recognised as an expense in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). The expense is classified as capital if the goods and/or services were acquired for a capital project or if the total purchase price exceeds the capitalisation threshold (currently R5, 000). All other expenditures are classified as current. Rental paid for the use of buildings or other fixed structures is classified asgoods and services and not as rent on land. 3.3 Interest and rent on land Interest and rental payments are recognised as an expense in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). This item excludes rental for the use of buildings or other fixed structures. If it is not possible to distinguish between payment for the use of land and the fixed structures on it, the whole amount should be recorded under goods and services. 3.4 Payments for financial assets

Debts are written off when identified as irrecoverable. Debts written-off are limited to the amount of savings and/or underspending of appropriated funds. The write off occurs at year-end or when funds are available. No provision is made for irrecoverable amounts but an estimate is included in the disclosure notes to the financial statements. All other losses are recognised when authorisation has been granted for the recognition thereof. 3.5 Transfers and subsidies Transfers and subsidies are recognised as an expense when the final authorisation for payment is effected on the system (by no later than 31 March of each year). 3.6 Unauthorised expenditure When confirmed unauthorised expenditure is recognised as an asset in the statement of financial position until such time as the expenditure is either approved by the relevant authority, recovered from the responsible person or written off as irrecoverable in the statement of financial performance. Unauthorised expenditure approved with funding is derecognised from the statement of financial position when the unauthorised expenditure is approved and the related funds are received. Where the amount is approved without funding it is recognised as expenditure in the statement of financial performance on the date stipulated in the Act. 3.7 Fruitless and wasteful expenditure Fruitless and wasteful expenditure is recognised as expenditure in the statement of financial performance according to the nature of the payment and not as a separate line item on the face of the statement. If the expenditure is recoverable it is treated as an asset until it is recovered from the responsible person or written off as irrecoverable in the statement of financial performance.

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Notes to the Annual Financial Statements for the year ended 31 March 2013 3.8 Irregular expenditure Irregular expenditure is recognised as expenditure in the statement of financial performance. If the expenditure is not condoned by the relevant authority it is treated as an asset until it is recovered or written off as irrecoverable. 4. Assets 4.1 Cash and cash equivalents Cash and cash equivalents are carried in the statement of financial position at cost. Bank overdrafts are shown separately on the face of the statement of financial position. For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts. 4.2 Other financial assets Other financial assets are carried in the statement of financial position at cost. 4.3 Prepayments and advances Amounts prepaid or advanced are recognised in the statement of financial position when the payments are made and are derecognised as and when the goods/services are received or the funds are utilised. Prepayments and advances outstanding at the end of the year are carried in the statement of financial position at cost.

4.4. Receivables Receivables included in the statement of financial position arise from cash payments made that are recoverable from another party (including departmental employees) and are derecognised upon recovery or write-off. Receivables outstanding at year-end are carried in the statement of financial position at cost plus any accrued interest. Amounts that are potentially irrecoverable are included in the disclosure notes. 4.4 Inventory Inventories that qualify for recognition must be initially reflected at cost. Where inventories are acquired at no cost, or for nominal consideration, their cost shall be their fair value at the date of acquisition. All inventory items at year-end are reflected using the weighted average cost or FIFO cost formula. 4.5 Capital assets 4.6.1 Movable assets Initial recognition A capital asset is recorded in the asset register on receipt of the item at cost. Cost of an asset is defined as the total cost of acquisition. Where the cost cannot be determined accurately, the movable capital asset is stated at fair value. Where fair value cannot be determined, the capital asset is included in the asset register at R1. All assets acquired prior to 1 April 2002 are included in the register R1.

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Notes to the Annual Financial Statements for the year ended 31 March 2013 Subsequent recognition Subsequent expenditure of a capital nature is recorded in the statement of financial performance as “expenditure for capital assets” and is capitalised in the asset register of the department on completion of the project. Repairs and maintenance is expensed as current “goods and services” in the statement of financial performance. 4.6.2 Immovable assets Initial recognition A capital asset is recorded on receipt of the item at cost. Cost of an asset is defined as the total cost of acquisition. Where the cost cannot be determined accurately, the immovable capital asset is stated at R1 unless the fair value for the asset has been reliably estimated. Subsequent recognition Work-in-progress of a capital nature is recorded in the statement of financial performance as “expenditure for capital assets”. On completion, the total cost of the project is included in the asset register of the department that is accountable for the asset. Repairs and maintenance is expensed as current “goods and services” in the statement of financial performance. 4.6.3 Intangible assets

Initial recognition An intangible asset is recorded in the asset register on receipt of the item at cost. Cost of an intangible asset is defined as the total cost of acquisition. Where the cost cannotbe determined accurately, the intangible asset is stated at fair value. Where fair value cannot be determined, the intangible asset is included in the asset register at R1. All intangible assets acquired prior to 1 April 2002 can be included in the asset register at R1.* Subsequent expenditure Subsequent expenditure of a capital nature is recorded in the statement of financial performance as “expenditure for capital asset” and is capitalised in the asset register of the department. Maintenance is expensed as current “goods and services” in the statement of financial performance.

5. Liabilities 5.1 Payables Recognised payables mainly comprise of amounts owing to other governmental entities. These payables are carried at cost in the statement of financial position. 5.2 Contingent liabilities Contingent liabilities are included in the disclosure notes to the financial statements when it is possible that economic benefits will flow from the department, or when an outflow of economic benefits or service potential is probable but cannot be measured reliably. 5.3 Commitments Commitments are not recognised in the statement of financial position as a liability or as expenditure in the statement of financial performance but are included in the disclosure notes. 5.4 Accruals Accruals are not recognised in the statement of financial position as a liability or as expenditure in the statement of financial performance but are included in the disclosure notes. 119

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Notes to the Annual Financial Statements for the year ended 31 March 2013 5.5 Employee benefits Short-term employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements. These amounts are not recognised in the statement of financial performance or the statement of financial position. 5.6 Lease commitments Operating lease Operating lease payments are recognised as an expense in the statement of financial performance. The operating lease commitments are disclosed in the discloser notes to the financial statement. 6. Receivables for departmental revenue Receivables for departmental revenue are disclosed in the disclosure notes to the annual financial statements. These receivables are written off when identified as irrecoverable and are disclosed separately. 7. Net Assets 7.1 Recoverable revenue Amounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off.

8. Related party transactions Specific information with regards to related party transactions is included in the disclosure notes. 9. Key management personnel Compensation paid to key management personnel including their family members where relevant, is included in the disclosure notes.

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Notes to the Annual Financial Statements for the year ended 31 March 2013 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: 2012/13 2011/12 Funds not Appropriation Final Actual Funds requested/ received Appropriation Received not received R’000 R’000 R’000 R’000

Administration 342,619 342,619 - 452,659 Public Works 525,327 525,327 - 438,587 Transport 1,630,391 1,630,391 - 1,767,222 Infrastructure Transport Operations 988,361 988,361 - 873,266 Community Based 39,131 39,131 - 59,855 Programme Total 3,525,829 3,525,829 - 3,591,589

1.2 Conditional grants Note 2012/13 2011/12 R’000 R’000

Total grants received 32 1,773,184 1,692,378

2. Statutory Appropriation 2012/13 2011/12 R’000 R’000

Member of executive committee 1,652 1,620

3. Departmental revenue Note 2012/13 2011/12 R’000 R’000

Sales of goods and services other than capital assets 3.1 18,860 14,212 Interest, dividends and rent on land 3.2 1,948 1,978 Sales of capital assets 3.3 934 2,459 Transactions in financial assets and liabilities 3.5 4,106 3,581 Total revenue collected 25,848 22,230

Departmental revenue collected 25,848 22,230 3.1 Sales of goods and services other than capital assets Note 2012/13 2011/12 3 R’000 R’000 Sales of goods and services produced by the department 18,805 14,169 Sales by market establishment - 6,944 Administrative fees 11,683 7,225 Other sales 7,122 - Sales of scrap, waste and other used current goods 55 43 Total 18,860 14,212

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Notes to the Annual Financial Statements for the year ended 31 March 2013 3.2 Interest, dividends and rent on land Note 2012/13 2011/12 3 R’000 R’000

Interest 1,948 1,978 3.3 Sale of capital assets Note 2012/13 2011/12 3 R’000 R’000 Tangible assets Machinery and equipment 43 934 2,459

3.4 Transactions in financial assets and liabilities Note 2012/13 2011/12 3 R’000 R’000

Receivables 3,369 3,218 Stale cheques written back 1 - Other Receipts including Recoverable Revenue 736 363 Total 4,106 3,581 4. Compensation of employees 4.1 Salaries and Wages Note 2012/13 2011/12 R’000 R’000

Basic salary 500,903 476,003 Performance award 12,268 15,957 Service Based 2,574 1,237 Compensative/circumstantial 21,703 43,883 Periodic payments 241 - Other non-pensionable allowances 114,324 105,672 Total 652,013 642,752 4.2 Social contributions Note 2012/13 2011/12 R’000 R’000 Employer contributions Pension 68,705 62,030 Medical 49,920 46,816 Bargaining council 214 122 Total 118,839 108,968

Total compensation of employees 770,852 751,720

Average number of employees 3,861 4,101

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Notes to the Annual Financial Statements for the year ended 31 March 2013

5. Goods and services Note 2012/13 2011/12 R’000 R’000

Administrative fees 139 216 Advertising 1,764 6,299 Assets less then R5,000 5.1 855 6,763 Bursaries (employees) 785 1,061 Catering 2,222 2,130 Communication 18,727 18,943 Computer services 5.2 1,608 1,467 Consultants, contractors and agency/outsourced services 5.3 165,660 135,458 Audit cost – external 5.4 8,276 8,739 Fleet services 24,959 30,100 Inventory 5.5 112,220 104,105 Operating leases 27,198 120,563 Property payments 5.6 381,612 434,367 Rental and hiring 59 - Transport provided as part of the departmental activities 445,198 343,673 Travel and subsistence 5.7 58,485 54,173 Venues and facilities 1,212 1,930 Training and staff development 1,762 31,976 Other operating expenditure 5.8 16,418 12,218 Total 1,269,159 1,314,181 5.1 Assets less than R5,000 Note 2012/13 2011/12 R’000 R’000 Tangible assets Machinery and equipment 855 6,763 Total 855 6,763 5.2 Computer services Note 2012/13 2011/12 R’000 R’000

SITA computer services 1,052 1,047 External computer service providers 556 420 Total 1,608 1,467 5.3 Consultants, contractors and agency/outsourced services Note 2012/13 2011/12 R’000 R’000

Business and advisory services 56,700 16,705 Infrastructure and planning 49,933 105,821 Legal costs 6,015 4,293 Contractors 147 2,476 Agency and support/outsourced services 52,865 6,163 Total 165,660 135,458

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Notes to the Annual Financial Statements for the year ended 31 March 2013

5.4 Audit cost – External Note 2012/13 2011/12 R’000 R’000

Regularity audits 8,276 8,739 5.5 Inventory Note 2012/13 2011/12 R’000 R’000

Food and food supplies 106 207 Fuel, oil and gas 8,235 10,652 Other consumables 84,773 72,614 Materials and supplies 8,749 10,205 Stationery and printing 10,349 10,415 Medical supplies 8 12 Total 112,220 104,105 5.6 Property payments Note 2012/13 2011/12 R’000 R’000

Municipal services 21,581 21,623 Property maintenance and repairs 271,360 283,944 Other 88,671 128,800 Total 381,612 434,367 5.7 Travel and subsistence Note 2012/13 2011/12 R’000 R’000

Local 58,351 54,173 Foreign 134 - Total 58,485 54,173 5.8 Other operating expenditure Note 2012/13 2011/12 8 R’000 R’000

Learnerships 1,529 1,491 Professional bodies, membership and subscription fees 158 83 Resettlement costs - 200 Other 14,731 10,444 Total 16,418 12,218 6. Payments for financial asset Note 2012/13 2011/12 R’000 R’000

Debts written off 6.1 2,502 2,502 Total 2,502 2,502

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Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Notes to the Annual Financial Statements for the year ended 31 March 2013

6.1 Debts written off Note 2012/13 2011/12 10 R’000 R’000

Irrecoverable debt written off 2,502 2,502

7. Transfers and subsidies 2012/13 2011/12 R’000 R’000 Note Provinces and municipalities Annex 1A 76,870 73,963 Public corporations and private enterprises Annex 1B 464,724 433,607 Households Annex 1C 7,734 13,477 Total 549,328 521,047

Unspent funds transferred to the above beneficiaries 8. Expenditure for capital assets Note 2012/13 2011/12 R’000 R’000

Tangible assets 931,241 998,404 Buildings and other fixed structures 29 922,528 971,380 Machinery and equipment 28 8,713 27,024

8.1 Analysis of funds utilised to acquire capital assets – 2012/13 Voted funds Total R’000 R’000

Tangible assets 931,241 931,241 Buildings and other fixed structures 922,528 922,528 Machinery and equipment 8,713 8,713 Total 931,241 931,241 8.2 Analysis of funds utilised to acquire capital assets – 2011/12 Voted funds Total R’000 R’000

Tangible assets 998,404 998,404 Buildings and other fixed structures 971,380 971,380 Machinery and equipment 27,024 27,024 Total 998,404 998,404

125

Annual Report 201213.indb 125 8/19/2013 7:57:02 AM ANNUAL

Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Notes to the Annual Financial Statements for the year ended 31 March 2013 9. Unauthorised expenditure 9.1 Reconciliation of unauthorised expenditure Note 2012/13 2011/12 R’000 R’000

Opening balance 4,875 4,875 Less: Amounts approved by Legislature with funding (2,661) (2,661) Unauthorised expenditure awaiting authorisation / written off 2,214 2,214

Analysis of awaiting authorisation per economic classification

Current 2,214 4,875

9.2 Analysis of unauthorised expenditure awaiting authorisation per type 2012/13 2011/12 R’000 R’000

Unauthorised expenditure relating to overspending of the 2,214 4,875 vote or a main division within a vote Total 2,214 4,875

10. Fruitless and wasteful expenditure 10.1. Reconciliation of fruitless and wasteful expenditure Note 2012/13 2011/12 R’000 R’000

Opening balance 4,052 4,052 Fruitless and wasteful expenditure awaiting resolution 4,052 4,052

Analysis of awaiting resolution per economic classification

Current 4,052 4,052

11. Receivables 2012/13 2011/12 Less than One to three Older than one year years three years Total Total Note R’000 R’000 R’000 R’000 R’000

Claims recoverable 11.1 7,003 1,525 234 8,761 4,677 Annex3 Recoverable 11.2 - - - - 69 expenditure Staff debt 11.3 355 40 16 411 1,198 Other debtors 11.4 899 7,022 6,641 14,563 54,966 Total 8,257 8,587 6,891 23,735 60,910

126

Annual Report 201213.indb 126 8/19/2013 7:57:02 AM ANNUAL

Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Notes to the Annual Financial Statements for the year ended 31 March 2013 11.1 Claims recoverable Note 2012/13 2011/12 R’000 R’000

National departments 49 251 Provincial departments 7,945 4,425 Public entities - 1 Local governments 767 -

Total 8,761 4,677 11.2 Recoverable expenditure (disallowance accounts) Note 2012/13 2011/12 R’000 R’000

Interdepartmental Claims - 53 Sal: Pension Fund - 16 Total - 69 11.3 Staff debt Note 2012/13 2011/12 R’000 R’000

Employees 411 1,198 Total 411 1,198 11.4 Other debtors Note 2012/13 2011/12 R’000 R’000

Suppliers 6,304 6,287 Rental (Business and Housing) 6,828 8,914 National Roads Agency - 1,943 Ex-Employees 1,429 1,345 Provincial Treasury - 36,477 Tax Debts 2 - Total 14,563 54,966 12. Voted funds to be surrendered to the Revenue Fun Note 2012/13 2011/12 R’000 R’000

Opening balance (36,477) (215,477) Transfer from statement of financial performance 4,399 5,262 Paid during the year 36,477 173,708 Closing balance 4,399 (36,477) 13. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund Note 2012/13 2011/12 R’000 R’000

Opening balance 7,532 37,816 Transfer from Statement of Financial Performance 25,848 22,230 Paid during the year (30,075) (52,514) Closing balance 3,305 7,532

127

Annual Report 201213.indb 127 8/19/2013 7:57:03 AM ANNUAL

Mpumalanga Province Department of Public Works, Roads and Transport Vote 8: Notes to the Annual Financial Statements for the year ended 31 March 2013 14. Bank Overdraft Note 2012/13 2011/12 R’000 R’000

Consolidated Paymaster General Account (14,988) (20) Total (14,988) (20) 15. Payables – current Note 2012/13 2011/12 R’000 R’000

Amounts owing to other entities Annex4 - 52,248 Clearing accounts 15.1 200 77 Other payables 15.2 198 524 Total 398 52,849

15.1 Clearing accounts Note 2012/13 2011/12 R’000 R’000

Sal: Income Tax: CL 200 - Sal: Medical - 77 Total 200 77 15.2 Other payables Note 2012/13 2011/12 R’000 R’000

Operating Licence Turn Around Strategy - 482 Public Infrastructure Summit 193 - Office of the Premier 5 - Siyatentela - 42 Total 198 524 16. Net cash flow available from operating activities Note 2012/13 2011/12 R’000 R’000

Net surplus/(deficit) as per Statement of Financial Performance 30,247 27,492 Add back non cash/cash movements not deemed operating 887,617 1,187,929 activities (Increase)/decrease in receivables – current 37,163 23,069 (Increase)/decrease in other current assets 2,661 - Increase/(decrease) in payables – current (52,439) 47,721 Proceeds from sale of capital assets (934) (2,459) Expenditure on capital assets 931, 241 998,404 Surrenders to Revenue Fund 6,402 121,194 Other non-cash items (36,477) - Net cash flow generated by operating activities 917,864 1,215,421 17. Reconciliation of cash and cash equivalents for cash flow purposes Note 2012/13 2011/12 R’000 R’000

Consolidated Paymaster General account (14,988) (20) Total (14,988) (20)

128

Annual Report 201213.indb 128 8/19/2013 7:57:03 AM ANNUAL - 4,016 R’000 505,966 509,982 2011/12 3,898 R’000 19,977 296,049 319,924 2012/13 Note Annex 4 Annex 2B Annex 2A Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Disclosure Notes to the Annual Financial Statements Nature Employees

Contingent liabilities and contingent assets Contingent liabilities

Total Other departments (interdepartmental unconfirmed balances) Liable to Housing loan guarantees Claims against the department These amounts are not recognised in the Annual Statements. Financial Statements and are disclosed to enhance the usefulness of the Annual Financial 18. 18.1 129

Annual Report 201213.indb 129 8/19/2013 7:57:03 AM ANNUAL R’000 682,290 2011/12 1,891,332 2,573,622 R’000 2012/13 1,390,070 1,098,658 2,488,728 Note Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Disclosure Notes to the Annual Financial Statements Current approved and contracted commitments include the following which are longer than a year; 1. Scholar Transport- (Not later than a year - R418,693 million; Later but not 5 years R 942,059 million) 2. Riverside Government Complex Maintenance - (Not later than a year R20,100 million; Later but not 5 years – R7,486 million) Commitments

Current expenditure Approved and contracted Capital expenditure Approved and contracted Total Commitments 19. 130

Annual Report 201213.indb 130 8/19/2013 7:57:03 AM ANNUAL Total 4,660 2,313 R’000 R’000 69,498 18,943 14,767 115,409 103,626 117,338 223,277 223,277 2011/12 2011/12 51 721 Total 5,694 4,175 R’000 R’000 32,980 24,959 14,580 52,558 67,859 67,859 2012/13 - 488 2,743 3,231 R’000 2012/13 30+ Days Note 721 R’000 49,815 14,092 64,628 Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Disclosure Notes to the Annual Financial Statements Accruals

Total Community Based Programmes Transport Operations Other Listed by programme level Administration Public Works Transport Infrastructure Listed by economic classification 30 Days 30 classification economic by Listed Goods and services Capital assets Total 20 131

Annual Report 201213.indb 131 8/19/2013 7:57:03 AM ANNUAL Total Total R’000 R’000 R’000 85,574 11,294 21,433 40,844 85,063 17,230 77,149 96,704 159,145 268,213 237,164 370,506 411,017 2011/12 - - 506 815 1,358 1,205 1,864 2,020 R’000 R’000 equipment equipment R’000 87,381 12,268 22,307 45,923 167,879 2012/13 Machinery and Machinery and R’000 R’000 83,705 17,230 75,944 96,704 267,707 236,349 368,642 408,997 Note fixed structures fixed structures Buildings and other Buildings and other Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Disclosure Notes to the Annual Financial Statements Employee benefits Lease commitments Operating leases expenditure

2012/13 Total Capped leave commitments Performance awards Service bonus (Thirteenth cheque) Leave entitlement Not later than 1 year Later than five years Operating leases expenditure 2011/12 Later than 1 year and not later 5 years Not later than 1 year Later than five years Total lease commitments Later than 1 year and not later 5 years Total lease commitments 21. 22. 22.1 132

Annual Report 201213.indb 132 8/19/2013 7:57:03 AM ANNUAL 34 148 954 7,172 R’000 R’000 61,053 61,053 14,698 23,006 358,278 358,278 419,331 419,331 2011/12 2012/13 None None None None None R’000 23,006 23,006 419,331 419,331 442,337 442,337 2012/13 proceedings Disciplinary steps taken/criminal Note Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Disclosure Notes to the Annual Financial Statements The department is investigating possible instances of irregular expenditure which has not been included in the amount disclosed above. The full extent of irregularity would only be known at the conclusion of these investigations. The based on the outcome of these investigations. amount disclosed above may change Irregular expenditure Reconciliation of irregular expenditure Details of irregular expenditure – current year

Incident Contravention of Supply Chain Management practice note 7 2009/10 – None declaration interest by employees from other departments Contravention of Supply Chain Management practice note 7 2009/10 – None declaration interest by employees from other departments Total Irregular expenditure awaiting condonation Analysis of awaiting condonation per age classification Current year Prior years Opening balance Add: Irregular expenditure – relating to current year Total Overtime allowance not in line with prescripts Acting Allowances not in line with Public Service Regulation Overpayments of bus contracts 23. 23.1 23.2 133

Annual Report 201213.indb 133 8/19/2013 7:57:04 AM ANNUAL 1 41 43 42 5,362 5,405 R’000 R’000 2012/13 2011/12 - None 42 5,405 5,447 R’000 ceedings 2012/13 Affidavits by officials Note Disciplinary steps taken/criminal pro Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Disclosure Notes to the Annual Financial Statements Fruitless and wasteful expenditure Analysis of Current year’s fruitless and wasteful expenditure Reconciliation of fruitless and wasteful expenditure

Interest on overdue account paid to Telkom No show for booked accommodation Total Incident Opening balance Fruitless and wasteful expenditure awaiting resolution Fruitless and wasteful expenditure – relating to current year 24. 24.1 24.2 134

Annual Report 201213.indb 134 8/19/2013 7:57:04 AM ANNUAL 7,106 3,418 1,541 R’000 12,065 2011/12 w 7,628 4,132 1,652 R’000 13,412 2012/13 9 4 1 No. of Individuals Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Disclosure Notes to the Annual Financial Statements During the financial year under review Department provided free accommodation to following Departments. 1. Vote 1 : Office of the Premier 2. Vote 2 : Provincial Legislature 3. Vote 3 : Finance 4. Vote 4 : Co-operative Governance and Traditional Affairs 5. Vote 5 : Agriculture, Rural Development and Land Administration 6. Vote 6 : Economic Development, Environment and Tourism 7. Vote 7 : Education 8. Vote 9 : Safety, Security and Liaison 9. Vote 10 : Health 10. Vote 11: Culture, Sports and Recreation 11. Vote 12: Social Development 12. Vote 13: Human Settlement The department has been using network infrastructure provided by the Department of Finance free charge during financial year under revie Related party transactions Key management personnel

Level 14 (incl. CFO if at a lower level) Level 15 to 16 Total Officials: Political office bearers (MEC) 25. 26. 135

Annual Report 201213.indb 135 8/19/2013 7:57:04 AM ANNUAL 330 330 R’000 4,540 4,540 R’000 10,043 10,043 17,477 22,620 2011/12 Closing 116,360 129,413 290,740 285,870 Balance - - - - R’000 (5,026) (2,800) (1,915) (1,500) (11,241) (11,241) Disposals ------R’000 2012/13 1,196 2,984 4,065 4,648 R’000 12,893 12,893 Additions - - - - 216 382 382 (389) (511) 1,066 R’000 Curr Year balances to prior year Adjust-ments Note 330 330 4,540 4,540 R’000 20,241 22,825 114,721 126,049 288,706 283,836 balance Opening Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Disclosure Notes to the Annual Financial Statements Impairment Movable Tangible Capital Assets

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS Biological assets BIOLOGICAL ASSETS Specialised military assets SPECIALISED MILITARY ASSETS Other machinery and equipment Furniture and office equipment Computer equipment MACHINERY AND EQUIPMENT Transport assets Impairment Debtors MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Total 27. 28. 136

Annual Report 201213.indb 136 8/19/2013 7:57:04 AM ANNUAL Total 4,648 2,984 1,196 4,065 R’000 12,893 12,893 - - - - - paid year, (Paid R’000 current received Received - prior year) current, not - - - - - R’000 lease Work in (Capital Progress - payments) and finance current costs - 515 590 3,076 4,181 R’000 Non-cash 4,181 606 989 Cash 4,648 2,469 8,712 R’000 8,712 Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Disclosure Notes to the Annual Financial Statements Additions

MACHINERY AND EQUIPMENT ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Transport assets Computer equipment Furniture and office equipment Other machinery and equipment TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 28.1 137

Annual Report 201213.indb 137 8/19/2013 7:57:04 AM ANNUAL 4 17 305 608 934 934 Cash R’000 Actual Received Total 1,500 1,915 2,800 5,026 R’000 11,241 11,241 disposals ------R’000 Transfer out or scrapped or destroyed 1,500 1,915 2,800 5,026 R’000 11,241 11,241 Sold for cash Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Disclosure Notes to the Annual Financial Statements Disposals

TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS MACHINERY AND EQUIPMENT Transport assets Other machinery and equipment Computer equipment Furniture and office equipment DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 28.2 138

Annual Report 201213.indb 138 8/19/2013 7:57:04 AM ANNUAL 330 330 4,540 4,540 R’000 20,241 22,825 114,721 126,049 283,836 288,706 Closing balance - - - - R’000 (15,088) (14,866) (48,205) (87,641) (165,800) (165,800) Disposals - - - - 1,239 6,822 3,669 R’000 15,294 27,024 27,024 Additions 330 330 4,540 4,540 R’000 34,090 67,361 122,765 198,396 422,612 427,482 balance Opening Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Disclosure Notes to the Annual Financial Statements Movement for 2011/12

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012 Other machinery and equipment SPECIALISED MILITARY ASSETS Furniture and office equipment MACHINERY AND EQUIPMENT BIOLOGICAL ASSETS Biological assets Specialised military assets TOTAL MOVABLE TANGIBLE ASSETS Computer equipment Transport assets 28.3 139

Annual Report 201213.indb 139 8/19/2013 7:57:04 AM ANNUAL 855 Total Total 8,377 3,287 R’000 28,141 45,636 36,518 33,062 (10,142) 855 8,377 3,287 R’000 28,141 45,636 36,518 33,062 (10,142) equipment equipment Machinery and Machinery and Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Disclosure Notes to the Annual Financial Statements Minor assets

Number of R1 minor assets Number of minor assets at cost TOTAL NUMBER OF MINOR ASSETS Opening balance Current year adjustment to prior balances Additions Disposals TOTAL MINOR ASSETS 28.4 140

Annual Report 201213.indb 140 8/19/2013 7:57:04 AM ANNUAL Total Total 9,032 6,763 R’000 37,675 10,593 49,466 46,707 45,636 9,032 6,763 R’000 37,675 10,593 49,466 46,707 45,636 equipment equipment Machinery and Machinery and Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Disclosure Notes to the Annual Financial Statements Number of minor assets at cost TOTAL NUMBER OF MINOR ASSETS Disposals TOTAL MINOR ASSETS Number of R1 minor assets MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR YEAR ENDED AS AT 31 MARCH 2012 Opening balance Additions

141

Annual Report 201213.indb 141 8/19/2013 7:57:05 AM ANNUAL 1 1 R’000 10,130 883,185 43,716,755 44,610,071 44,610,070 Closing Balance ------R’000 Disposals - 1 1 R’000 40,415 623,100 663,516 663,515 Additions ------R’000 Curr Year balances to prior year Adjust-ments - - R’000 10,130 842,770 balance Opening 43,093,655 43,946,555 43,946,555 Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Disclosure Notes to the Annual Financial Statements Immovable Tangible Capital Assets

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS Land LAND AND SUBSOIL ASSETS Other fixed structures Non-residential buildings Dwellings BUILDINGS AND OTHER FIXED STRUCTURES MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 29.

142

Annual Report 201213.indb 142 8/19/2013 7:57:05 AM ANNUAL 1 1 Total R’000 40,415 623,100 663,516 663,515 ------paid R’000 Received prior year) current, not (Paid current year, received - - - R’000 917,935 (917,935) (917,935) costs and payments) finance lease Progress current (Capital Work in 1 1 R’000 35,822 623,100 658,923 658,922 Non-cash - - Cash 4,593 R’000 917,935 922,528 922,528 Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Disclosure Notes to the Annual Financial Statements Additions

TOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS Land Other fixed structures LAND AND SUBSOIL ASSETS Non-residential buildings BUILDING AND OTHER FIXED STRUCTURES ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 29.1

143

Annual Report 201213.indb 143 8/19/2013 7:57:05 AM ANNUAL Total Total R’000 12,903 12,925 10,130 12,903 12,925 842,770 43,093,655 43,946,555 43,946,555 Closing balance - - - - - R’000 Disposals 492 419 492 419 Land and Land and - - subsoil assets subsoil assets R’000 469,739 469,739 469,739 Additions - - - - Heritage assets Heritage assets R’000 10,130 373,031 43,093,655 43,476,816 43,476,816 12,411 12,506 12,411 12,506 structures structures other fixed other fixed Buildings and Buildings and Opening balance Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Disclosure Notes to the Annual Financial Statements Movement for 2011/12 Immovable assets valued at R1

TOTAL IMMOVABLE TANGIBLE ASSETS Other fixed structures BUILDINGS AND OTHER FIXED STRUCTURES Dwellings Non-residential buildings MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012 IMMOVABLE ASSETS VALUED AT R1 IN THE ASSET REGISTER AS 31 MARCH 2013 R1 Immovable assets TOTAL IMMOVABLE ASSETS VALUED AT R1 IN THE ASSET REGISTER AS 31 MARCH 2012 R1 Immovable assets TOTAL 29.2 29.3

144

Annual Report 201213.indb 144 8/19/2013 7:57:05 AM ANNUAL 7,861 R’000 73,963 416,978 Amount 1,190,437 spent by 1,689,239 department 2011/12 Total 7,878 R’000 73,964 420,099 1,190,437 1,692,378 available

% % of 100% 100% 100% 100% 100% funds spent by available department R’000 16,617 76,870 439,003 Amount 1,240,694 spent by 1,773,184 Spent department by R’000 16,617 76,870 439,003 Amount received 1,240,694 1,773,184 department

Total R’000 16,617 76,870 439,003 1,240,694 1,773,184 Available - - - Vote 8: R’000 16,617 16,617 Mpumalanga Province Adjustments - - - - - for the year ended 31 March 2013 R’000 DORA adjustments Department of Public Works, Roads and Transport

- - - - - GRANT ALLOCATION Roll R’000 Overs - R’000 76,870 Annexures (Unaudited Supplementary Schedules ) to the Annual Financial Statements 439,003 Amount 1,240,694 1,756,567

NAME OF GRANT TOTAL EPWP Incentive Grant Provincial Subsidies Transport Provincial Maintenance Grant Roads Devolution Rates and Taxes of Property STATEMENT OF CONDITIONAL GRANTS RECEIVED 145

Annual Report 201213.indb 145 8/19/2013 7:57:05 AM ANNUAL

of 394 289 154 Act 1,973 1,063 4,117 2,857 2,483 1,377 2,155 1,148 3,468 2,395 1,248 7,056 3,995 R’000 19,000 18,791 73,963 Division Revenue 2011/12

% % of 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% funds spent by available department - - - 653 1,646 4,930 6,269 6,095 2,792 5,412 4,783 3,518 1,767 4,925 4,630 1,708 R’000 10,594 17,148 76,870 Amount spent by SPENT department - - - by 653 1,646 4,930 6,269 6,095 2,792 5,412 4,783 3,518 1,767 4,925 4,630 1,708 R’000 10,594 17,148 76,870 Amount received department ------% Re- National Treasury or allocations by National Department ------R’000 Funds Withheld TRANSFER - - - 653 6,269 6,095 2,792 5,412 4,783 4,930 3,518 1,767 4,925 4,630 1,708 1,646 R’000 10,594 17,148 76,870 Actual Transfer Vote 8:

- - - 653 Mpumalanga Province Total 6,269 6,095 2,792 5,412 4,783 4,930 3,518 1,767 4,925 4,630 1,708 1,646 R’000 10,594 17,148 76,870 Available for the year ended 31 March 2013

- (6) (2) 766 319 (141) (406) (863) (408) (370) 1,702 2,791 2,612 3,425 R’000 Department of Public Works, Roads and Transport (1,826) (2,605) (2,631) (1,100) (1,254) Adjustments

- Roll R’000 Overs GRANT ALLOCATION

Annexures (Unaudited Supplementary Schedules ) to the Annual Financial Statements of Act 4,567 3,307 2,933 1,826 1,061 2,800 2,605 4,017 1,505 3,524 1,448 7,556 5,000 1,100 1,710 2,900 R’000 11,000 18,011 76,870 Division Revenue NAME OF MUNICIPALITY TOTAL Govan Mbeki Albert Luthuli Lekwa Bushbuckridge Mbombela Dipaliseng Dr JS Moroka Emakhazeni Mkhondo Msukaligwa Emalahleni Nkomazi Pixley ka Seme Steve Tshwete Thaba Chweu Thembisile Umjindi Victor Khanye ANNEXURE 1A STATEMENT OF CONDITIONAL GRANTS PAID TO MUNICIPALITIES

146

Annual Report 201213.indb 146 8/19/2013 7:57:05 AM ANNUAL - - R’000 Appro- 437,138 437,138 437,138 2011/12 priation Act

- - - - - R’000 Current

- - - - - R’000 Capital % % of 100% 100% 100% 100% 100% funds EXPENDITURE Available Transferred

506 506 R’000 Actual 464,218 464,218 464,724 Transfer

506 506 Total R’000 464,303 464,303 464,809 Available Vote 8:

506 506 6,800 6,800 7,306 R’000 Mpumalanga Province Adjustments for the year ended 31 March 2013 - - - - - Roll R’000 Overs Department of Public Works, Roads and Transport TRANSFER ALLOCATION - - Act R’000 457,503 457,503 457,503 Adjusted Annexures (Unaudited Supplementary Schedules ) to the Annual Financial Statements Appropriation

NAME OF PUBLIC CORPORATION/PRIVATE ENTERPRISE Public Corporations Subsidies Sub Total Sub Total Private Enterprises Subsidies (Buses) TOTAL ANNEXURE 1B STATEMENT OF TRANSFERS/SUBSIDIES TO PUBLIC CORPORATIONS AND PRIVATE ENTERPRISES 147

Annual Report 201213.indb 147 8/19/2013 7:57:05 AM ANNUAL 20 Act 5,747 8,013 2,180 R’000 15,960 2011/12 Appro-priation

- - % 53% % of 134% Transferred Available funds

- 505 2,277 4,952 7,734 R’000 EXPENDITURE Actual Transfer

- - Total 4,337 3,697 8,034 R’000 Available

- - Vote 8: 1,317 R’000 (3,900) (2,583) Adjust-ments Mpumalanga Province for the year ended 31 March 2013

- - - - - Roll R’000 Overs Department of Public Works, Roads and Transport TRANSFER ALLOCATION - - Act 8,237 2,380 R’000 10,617 Annexures (Unaudited Supplementary Schedules ) to the Annual Financial Statements Adjusted Appropriation TOTAL Bursaries Refund: Act of Grace of Act Refund: Claims against state the HOUSEHOLDS Transfers Social Benefit ANNEXURE 1C STATEMENT OF TRANSFERS TO HOUSEHOLDS 148

Annual Report 201213.indb 148 8/19/2013 7:57:06 AM ANNUAL 5 2 5 2 5 5 2 2 3 2 20 10 10 20 40 40 40 52 R’000 2011/12 5 5 50 40 R’000 2012/13 Vote 8: Mpumalanga Province for the year ended 31 March 2013 Public Infrastructure Summit Public Infrastructure Summit Public Infrastructure Summit Donation for Departmental Year End Function Donation for Departmental Year End Function Donation for Departmental Year End Function Donation for Departmental Year End Function Donation for Departmental Year End Function Donation for Departmental Year End Function Donation for Departmental Year End Function Donation for Departmental Year End Function Donation for Departmental Year End Function Donation for Departmental Year End Function Donation for Departmental Year End Function Donation for Departmental Year End Function Donation for Departmental Year End Function Donation for Departmental Year End Function Department hosting Giama Technical Committee Department hosting Giama Technical Committee Property Management staff meeting with District offices Property Management staff meeting with District offices Public Infrastructure Summit NATURE OF GIFT, DONATION OR SPONSORSHIP Department of Public Works, Roads and Transport Annexures (Unaudited Supplementary Schedules ) to the Annual Financial Statements Nxumalo De Jogger ARC Clear Choice Builder Buscor Monde Consulting Engineers Mohalabe Mtonga Consulting Qual Consulting QS Baloyi Quantity Surveys MDP Planners Ntshangalala Business Enterprise DN Nyathi Chauke Quantity Surveys Lidwala Consulting Engineers BCE Lowveld Travel Agency FT Consulting Meondo Trading 333 Your Trade 62cc Alkara KwaMhlaba Connect Microzone Mashinini Venus Boetie Tills NAME OF ORGANISATION ANNEXURE 1D STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED 149

Annual Report 201213.indb 149 8/19/2013 7:57:06 AM ANNUAL 2 2 3 2 265 R’000 2011/12 5 2 5 1 5 70 10 40 88 50 20 10 12 50 15 10 493 R’000 2012/13 Vote 8: Mpumalanga Province for the year ended 31 March 2013 Donation for Departmental Year End Function Department hosting Giama Technical Committee Department hosting Giama Technical Committee Property Management staff meeting with District offices Property Management staff meeting with District offices Donation for Departmental Year End Function Donation for Departmental Year End Function Donation for Departmental Year End Function Donation for Departmental Year End Function Donation for Departmental Year End Function Donation for Departmental Year End Function Public Infrastructure Summit Public Infrastructure Summit Public Infrastructure Summit Public Infrastructure Summit Public Infrastructure Summit Public Infrastructure Summit Public Infrastructure Summit Public Infrastructure Summit Public Infrastructure Summit NATURE OF GIFT, DONATION OR SPONSORSHIP Department of Public Works, Roads and Transport Annexures (Unaudited Supplementary Schedules ) to the Annual Financial Statements Sub Total Xiluva Xa Mina Projects Received in Kind Alkara KwaMhlaba Connect Microzone Mashinini Venus Inhlakanipho Consultants Muteo Consultants Moteko Consultants Great North Transport David Sekgobela Associates Mnoluzi Calibre Moteko Consultants Qual Consulting QS KwaMahlaba Connect Bob Chidaya Hardstone Mthethwa Klus Civil Mozma Thusang Projects D Gubevu M ANNEXURE 1D (Continues) NAME OF ORGANISATION

150

Annual Report 201213.indb 150 8/19/2013 7:57:06 AM ANNUAL R’000 2011/12 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 3 5 5 5 7 8 1 5 20 R’000 2012/13 Vote 8: Mpumalanga Province for the year ended 31 March 2013 Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Ms B Zwedal farewell function Ms B Zwedal farewell function NATURE OF GIFT, DONATION OR SPONSORSHIP Department of Public Works, Roads and Transport Annexures (Unaudited Supplementary Schedules ) to the Annual Financial Statements Mpemecivials Abomndeni construction Shirindi and son Rumamina P.S Construction MMLes Business Momotho’s Project Lizzy’s Transport and Civil Contract Thadia Construction LGM transport Yaquba Construction & Project Azembeleni Trading & Project cc Ezika Paul Construction Nomgcibelo Transport JS Silinda Punctual Trading Tamane Investments cc Nomaziyane’s Construction Letsholo & Sons Construction cc Mordecai Belroch Construction Spectrum Lavet Breeze Picaz Holiday House keeping Your Trade ANNEXURE 1D (Continues) NAME OF ORGANISATION

151

Annual Report 201213.indb 151 8/19/2013 7:57:06 AM ANNUAL R’000 2011/12 5 8 5 5 6 9 9 2 5 5 6 20 15 10 12 15 12 15 10 26 10 20 11 15 R’000 2012/13 Vote 8: Mpumalanga Province for the year ended 31 March 2013 Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day NATURE OF GIFT, DONATION OR SPONSORSHIP Department of Public Works, Roads and Transport Annexures (Unaudited Supplementary Schedules ) to the Annual Financial Statements Xaka Business Enterprise Ntsangalala Business Enterprise Shamila Trading SASSA and PWR&T Amware Basadi Qondile Investments Suzan Mabila Siyazama Paul Jerry Thenjwako Shirdo Trading Ehlanzeni Management and staff Ehlanzeni Management Mlolo Mbophakasithayi Muravha building and Civils Luthi Trading Ntshangalala Business Enterprises Sihlangu Construction and Development Vulamandla Madodo’s Mkev’s Trading Mpfumelelo business Enterprise ANNEXURE 1D (Continues) NAME OF ORGANISATION

152

Annual Report 201213.indb 152 8/19/2013 7:57:06 AM ANNUAL 9 274 R’000 2011/12 6 3 7 5 3 6 3 15 17 12 12 24 446 939 R’000 2012/13 Vote 8: Mpumalanga Province for the year ended 31 March 2013 Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day NATURE OF GIFT, DONATION OR SPONSORSHIP Department of Public Works, Roads and Transport Annexures (Unaudited Supplementary Schedules ) to the Annual Financial Statements Sub Total Manager’s of Bohlabela District GRAND TOTAL Shummang Civil Construction Building Construction ASL Architects Morei QS Risimati Electrical and mechanical AOS consulting Sussian Business Enterprise Lwakiti Trading Spearhead Mungoni Trading Mpandose Trading ANNEXURE 1D (Continues) NAME OF ORGANISATION

153

Annual Report 201213.indb 153 8/19/2013 7:57:06 AM ANNUAL ------R’000 Realised losses not claims paid out recoverable i.e. ------R’000 interest for March 2013 Guaranteed year ended 31 54 75 46 63 84 833 180 671 222 450 472 319 155 274 3,898 R’000 Closing balance 31 March 2013 ------R’000 Revaluations ------73 10 14 21 (118) R’000 the year Guarantees released during ------Vote 8: R’000 year during the Mpumalanga Province Guarantees draw downs 68 75 46 63 84 for the year ended 31 March 2013 906 190 671 222 450 493 319 155 274

4,016 R’000 Department of Public Works, Roads and Transport balance Opening 1 April 2012 ------

R’000 capital amount Original guaranteed Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements

RESPECT OF GUARANTEE IN Housing Housing Housing Housing Housing Housing Housing Housing Housing Housing Housing Housing Housing Housing

INSTITUTION GUARANTOR Standard Bank Nedbank Limited Firstrand Bank First-Rand Bank Ltd Nedbank Old Mutual Bank Div of Nedbank ABSA VBS Mutual Bank Mpumalanga Housing Finance Company Unique Finance (Pty)Ltd Northen Province Development Co. Old Mutual Limited TOTAL Peoples Bank Peoples Bank Ltd ANNEXURE 2A STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2013 154

Annual Report 201213.indb 154 8/19/2013 7:57:07 AM ANNUAL 296,049 296,049

R’000 Closing Balance 31 March 2013 - -

R’000 Liabilities hereunder) recoverable (Provide details

(296,611) (296,611) R’000 the year cancelled/ Liabilities paid/ reduced during

86,694 86,694 R’000 the year Liabilities incurred during

505,966 505,966

R’000 Balance Opening 1 April 2012 Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements Claims against the department TOTAL NATURE OF LIABILITY ANNEXURE 2B STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2013 155

Annual Report 201213.indb 155 8/19/2013 7:57:07 AM ANNUAL - 6 6 59 40 18 15 47 12 13 26 26 14 30 432 146 111 160 2,064 1,477 4,702 R’000 31/03/2012 ------Total 11 77 50 612 452 215 647 987 2,072 1,790 1,014 7,915 R’000 31/03/2013 - - 6 6 26 59 40 47 13 15 12 26 30 14 146 111 432 160 2,064 1,477 4,684 R’000 31/03/2012 ------11 50 612 452 215 647 2,060 1,014 5,061 R’000 31/03/2013 Unconfirmed balance outstanding ------18 18 Vote 8: R’000 31/03/2012 Mpumalanga Province ------77 987 for the year ended 31 March 2013 1,790 2,854 R’000 Department of Public Works, Roads and Transport Confirmed balance outstanding 31/03/2013 Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements National Dept of public works Public Works (Limpopo Province) Health (Mpumalanga) Gauteng Department of Public Works Land Affairs/ Rural Development and Reform Cooperative Government and Traditional Affairs Mpumalanga Prov Legislature Human Settlement Labour Home Affairs Social Development South African Police Service Culture, Sport and Recreation Sub Total GOVERNMENT ENTITY Department of Justice Safety and Security( Mpumalanga) Economic Development Education Finance Department Agriculture and Land Administration Department of Health and Social Services ANNEXURE 3 CLAIMS RECOVERABLE 156

Annual Report 201213.indb 156 8/19/2013 7:57:07 AM ANNUAL - 1 1 120 122 4,824 R’000 31/03/2012 - - - Total 767 767 8,682 R’000 31/03/2013 - 1 1 120 122 4,806 R’000 31/03/2012 - - - 767 767 5,828 R’000 31/03/2013 Unconfirmed balance outstanding - - - - - 18 Vote 8: R’000 31/03/2012 Mpumalanga Province - - - - - for the year ended 31 March 2013 2,854 R’000 Department of Public Works, Roads and Transport Confirmed balance outstanding 31/03/2013 Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements Sub Total ANNEXURE 3 (Continues) GOVERNMENT ENTITY TOTAL DR JS Moroka Bushbuckridge municipality Other Government Entities Mpumalanga Tourism and Parks Agency South African Revenue Services

157

Annual Report 201213.indb 157 8/19/2013 7:57:07 AM ANNUAL 5 16 142 460 51,772 52,395 R’000 31/03/2012 - - - - TOTAL 19,977 19,977 R’000 31/03/2013 - - - 5 142 147 R’000 31/03/2012 - - - - 19,977 19,977 R’000 31/03/2013 Unconfirmed balance outstanding - - 16 460 Vote 8: 51,772 52,248 R’000 Mpumalanga Province 31/03/2012 for the year ended 31 March 2013 ------Department of Public Works, Roads and Transport R’000 Confirmed balance outstanding 31/03/2013 - Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements GOVERNMENT ENTITY Health (Mpumalanga) Co-operative Governance & Traditional Af fairs DEPARTMENTS Current RTMC Safety Security and Liaison Culture, Sport and Recreation TOTAL ANNEXURE 4 INTER-GOVERNMENT PAYABLES 158

Annual Report 201213.indb 158 8/19/2013 7:57:07 AM ANNUAL 252 94,439 20,280 14,249 (1,528) (1,331) 104,105 (201,968) R’000 2011/12 (701) 10,817 (5,568) 289,940 181,290 (60,493) 1,323,440 (1,376,145) Quantity 449 (21) 9,458 14,249 (4,955) (3,979) 112,220 (108,505) R’000 2012/13 23,178 (1,023) (1,473) 181,290 (26,312) 102,665 1,165,643 (1,238,638) Vote 8: Quantity Mpumalanga Province for the year ended 31 March 2013 Note Department of Public Works, Roads and Transport Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements Opening balance Add/(Less): Adjustments INVENTORY (Less): Disposals Add: Additions/Purchases – Cash CLOSING BALANCE Add/(Less): Adjustments to prior year balance Add: Additions - Non-cash (Less): Issues ANNEXURE 5 INVENTORY 159

Annual Report 201213.indb 159 8/19/2013 7:57:07 AM ANNUAL R’000 1,266,215 1,266,215 1,266,215

Closing balance R’000 (623,100) (623,100) (623,100) Completed Assets WIP R’000 917,935 917,935 917,935

Current Year Capital R’000 971,380 971,380 971,380

Opening balance Vote 8: Mpumalanga Province for the year ended 31 March 2013 Department of Public Works, Roads and Transport Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements MOVEMENT IN CAPITAL WORK PROGRESS FOR THE YEAR ENDED 31 MARCH 2013 Other fixed structures TOTAL BUILDINGS AND OTHER FIXED STRUCTURES ANNEXURE 6 MOVEMENT IN CAPITAL WORK PROGRESS 160

Annual Report 201213.indb 160 8/19/2013 7:57:07 AM ANNUAL

Notes:______

______

161

Annual Report 201213.indb 161 8/19/2013 7:57:07 AM ANNUAL

Notes:______

______

162

Annual Report 201213.indb 162 8/19/2013 7:57:08 AM