FSDPW FSDPW FSDPW PR224/2016 ANNUAL REPORT ISBN: 978-0-621-44731-6 2015|2016 REPORT 2016REPORT 051 403 3422 2015 ANNUAL www.publicworks.fs.gov.za www.publicworks.fs.za DEPARTMENT OF PUBLIC WORKS AND INFRASTRUCTURE PROVINCE OF FREE STATE VOTE NO. 09 ANNUAL REPORT 2015/2016 FINANCIAL YEAR www.publicworks.fs.gov.za Free State Department of Public Works and Infrastructure 2015/2016 Annual Report, Vote 9 CONTENTS PART A: GENERAL INFORMATION 3 1. DEPARTMENT GENERAL INFORMATION 4 2. LIST OF ABBREVIATIONS/ACRONYMS 5 3. FOREWORD BY THE MEC 6 4. REPORT OF THE ACCOUNTING OFFICER 8 5. STATEMENT OF THE RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT 26 6. STRATEGIC OVERVIEW 27 6.1 Vision 27 6.2 Mission 27 6.3 Values 27 7. LEGISLATIVE AND OTHER MANDATES 27 8. ORGANISATIONAL STRUCTURE 28 PART B: PERFORMANCE INFORMATION 30 1. AUDITOR GENERAL'S REPORT: PREDETERMINED OBJECTIVES 32 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE 32 2.1 Service Delivery Environment 32 2.2 Service Delivery Improvement Plan 33 2.3 Organisational environment 34 2.4 Key policy development and legislative changes 34 3. STRATEGIC OUTCOME ORIENTED GOALS 35 4. PERFORMANCE INFORMATION BY PROGRAMME 36 4.1 Programme 1: Administration 36 4.2 Programme 2: Public Works Infrastructure 41 4.3 Programme 3: Expanded Public Works Programme 47 5. TRANSFER PAYMENTS 50 6. CONDITIONAL GRANTS 50 7. CAPITAL INVESTMENT 52 7.1 Capital investment, maintenance and asset management plan 52 PART C: GOVERNANCE 56 1. INTRODUCTION 58 2. RISK MANAGEMENT 58 3. FRAUD AND CORRUPTION 60 4. MINIMISING CONFLICT OF INTEREST 61 5. CODE OF CONDUCT 61 6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES 61 7. PORTFOLIO COMMITTEES 63 8. SCOPA RESOLUTIONS 63 9. PRIOR MODIFICATIONS TO AUDIT REPORTS 65 10. INTERNAL CONTROL UNIT 66 11. INTERNAL AUDIT AND AUDIT COMMITTEES 66 12. AUDIT COMMITTEE REPORT 69 PART D: HUMAN RESOURCE MANAGEMENT 70 1. INTRODUCTION 72 2. OVERVIEW OF HUMAN RESOURCES 72 3. HUMAN RESOURCES OVERSIGHT STATISTICS 75 PART E: FINANCIAL INFORMATION 94 1. REPORT OF THE AUDITOR GENERAL 96 2. ANNUAL FINANCIAL STATEMENTS 102 www.publicworks.fs.gov.za 1 PART A: GENERAL INFORMATION www.publicworks.fs.gov.za 2 CONTENTS 1. DEPARTMENT GENERAL INFORMATION 4 2. LIST OF ABBREVIATIONS/ACRONYMS 5 3. FOREWORD BY THE MEC 6 4. REPORT OF THE ACCOUNTING OFFICER 8 5. STATEMENT OF THE RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT 26 6. STRATEGIC OVERVIEW 27 6.1 Vision 27 6.2 Mission 27 6.3 Values 27 7. LEGISLATIVE AND OTHER MANDATES 27 8. ORGANISATIONAL STRUCTURE 28 www.publicworks.fs.gov.za 3 Free State Department of Public Works and Infrastructure 2015/2016 Annual Report, Vote 9 1. DEPARTMENT GENERAL INFORMATION PHYSICAL ADDRESS 3rd Floor Room 310 OR Tambo House Corner St Andrew and Markgraaf Streets Bloemfontein 9301 POSTAL ADDRESS P.O. Box 7551 Bloemfontein 9300 TELEPHONE NUMBER/S: 051 405 4692 FAX NUMBER: 086 624 7915 EMAIL ADDRESS: hodoffi[email protected] WEBSITE ADDRESS www.publicworks.fs.gov.za www.publicworks.fs.gov.za 4 Free State Department of Public Works and Infrastructure 2015/2016 Annual Report, Vote 9 2. LIST OF ABBREVIATIONS/ACRONYMS AFS Annual Financial Statements AGSA Auditor-General of South Africa AO Accounting Officer APP Annual Performance Plan BAS Basic Accounting System B-BBEE Broad Based Black Economic Empowerment C-AMP Custodian Immovable Asset Management Plan CBD Central Business District CFO Chief Financial Officer CIDB Construction Industry Development Board CIP Compulsory Induction Programme CIPC Companies and Intellectual Property Commission CIPS Chartered Institute for Procurement and Supply COC Certificate of Completion DORA Division of Revenue Act DPSA Department of Public Service and Administration EAP Employee Assistance Programs EPWP Expanded Public Works Programme FMPPI Framework for Managing Programme Performance Information GDP Gross Domestic Product GIAMA Government Immovable Asset Management Act HDI Historically Disadvantage Individuals HOA Home Owners Allowance HOD Head of Department HRC Human Rights Commission IAF Internal Audit Function ICT Information Communication Technology ICU Intensive Care Unit IDMS Infrastructure Delivery Management Systems ISPPIA International Standard of the Professional Practise of Internal Auditing IYM In Year Monitoring KCM Key Control Matrix LCL Local Casual Labourers LOGIS Logical Information System MCS Modified Cash Standard MEC Member of Executive Council MPAT Management Performance Assessment Tool MPL Member of Provincial Legislature MPSA Minister for Public Service and Administration INFORMATION A: GENERAL PART MTEF Medium Term Expenditure Framework MTSF Medium Term Strategic Framework NALN National Afrikaans Literary Museum and Research Centre NRF National Revenue Fund NYS National Youth Service OHSA Occupational Health and Safety Act OSD Occupation Specific Dispensation PAA Public Audit Act PERSAL Personnel Salary Administration PFMA Public Finance Management Act PROPAC Provincial Public Accounts Committee PSA Public Service Act SCM Supply Chain Management SCOPA Standing Committee on Public Accounts SDIP Service Delivery Improvement Plan SHERQ Safety, Health, Environment, Risk and Quality SITA State Information Technology Agency SMME Small Medium and Micro Enterprises SMS Senior Management Service TR Treasury Regulations U-AMP User Immovable Asset Management Plans VHCT Virtual Health Care Team WSP Workplace Skills Plan www.publicworks.fs.gov.za 5 Free State Department of Public Works and Infrastructure 2015/2016 Annual Report, Vote 9 3. FOREWORD BY THE MEMBER OF EXECUTIVE COUNCIL: PUBLIC WORKS AND INFRASTRUCTURE It is with great pleasure to present this 2015/2016 Annual Report for the Department of Public Works and Infrastructure as the country marks 22 years of democratic government. The year under review has not been an easy year. The economy of the country and the province continued to be sluggish, fiscal resources were constrained as well as the effects of global warming were challenges that we faced but we soldiered on. We are pleased to report that during this period some notable achievements were realised. As we take stock of our performance, this is the time to both celebrate and do introspection into where we still need to improve. It is fitting, therefore, that we take this opportunity to briefly reflect on some of the key progress and achievements made during this period. To continue to improve our capacity at all levels and trades, we have made 70 appointments of which 18 were technical positions. To address and promote gender, youth and disability we made appointments of 14 disabled officials and 15 women on salary levels 9-14. Presently the Department has 44 disabled employees which reflect 2.48% of fulltime workforce which is above the national norm of 2%. The Department also has measures in place to deal with knowledge management by employing both retention and training programmes. For the year under review, the Department with its registered professionals such as architects, quantity surveyors and engineers responded to its mandate and completed 27 projects of which 18 were Department own projects and nine for client departments. The responsibility of managing payments of rates and taxes, electricity and rental payments lies within the Department and it can be gladly reported that spending on the allocated budget of R342. 409m was 100%. Due to insufficient budget, the Department is confronted with a shortfall with regards to the payment of municipal services. This was reported to Provincial Treasury to request the allocation of sufficient funds. Transformation of the Property industry is part of the Departments mandate therefore; contracts were signed with six new black landlords for leasing in of office accommodation. Women, Youth and Previously Disadvantaged Individuals were also successfully awarded tenders by the Department. The Expanded Public Works Programme has been entrusted with the provincial coordination and monitoring of all stakeholders in relation to the creation of work opportunities according to targets set nationally. Through its community development initiatives, the Department contributed by creating 2 524 work opportunities. The Department continued with the implementation of the Township Revitalisation Programme in seventeen towns of the province. This programme is about improving the image and value of townships as decent places of residence, upgrading of low volume roads from gravel to paving by using interlocking pavers. The Township Revitalisation Project is one of our provinces’ flagship projects. As the provinces’ coordinators and monitors of the implementation of EPWP, we facilitated the achievement of 53 715 validated work opportunities out of an annual target of 59 964 work opportunities for the 2015/2016 financial year. With regards to revenue collection, some occupants could not afford to pay the full purchase price for the sale of residential houses that were disposed. By the end of the financial year, revenue was over collected due to arrear rental payments. Priorities from the National Development Plan, 2014-2019 Medium Term Strategic Framework Outcomes as it forms the first 5-Year building block towards achieving the National Development Plan Vision 2030, Free State Growth and Development Strategy priorities and all the relevant legislation, policies and other mandates of the Department of Public Works and Infrastructure were taken into account whilst implementing 2015/2016 policy directives. www.publicworks.fs.gov.za 6 Free State Department of Public Works and Infrastructure