ANNUAL REPORT 2018 | 19 - provincialgovernment.co.za€¦ · Department General Information. 5...
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ANNUAL REPORT 2018 | 19
Growing Gauteng Together
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
PART A: General Information 03
PART B: Performance Information 17
PART C: Governance 41
PART D: Human Resources 49
PART E: Financial Information 73
CONTENTS
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Department General Information 04
List of abbreviations/Acronyms 05
Foreword By The MEC 06
Report Of The Accounting Officer 07
Statement Of Responsibility And Confirmation 12Of Accuracy For The Annual Report
Strategic Overview 13
Legislative and Other Mandates 14
Organisational Structure 15
Entities Reporting To The MEC 15
PART A: GENERAL INFORMATION
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
PHYSICAL ADDRESS:
75 Fox Street, Imbumba HouseJohannesburg2107
POSTAL ADDRESS:
Private Bag X 12Marshalltown2107
TELEPHONE NUMBERS:
011 227 9000
EMAIL ADDRESS:
WEBSITE ADDRESS:
www.treasury.gpg.gov.za
Department General Information
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
AFS Annual Financial StatementsAG Auditor GeneralAO Accounting OfficerAPP Annual Performance Plan AGSA Auditor General of South AfricaCFO Chief Financial OfficerDPSA Department of Public Service & AdministrationEPRE Estimates of Provincial Revenue & ExpenditureERM Enterprise Risk Management EXCO Executive Council
FY Financial Year
GIFA Gauteng Infrustructure Funding Agency
GDID Gauteng Department Of Infrustructure Development
GPT Gauteng Provincial Treasury GPG Gauteng Provincial Government GRAP Generally Recognised Accounting PracticeHOD Head of Department HR Human ResourcesICT Information and Communications TechnologyIDMS Infrastructure Delivery Management System IDP Integrated Development PlanIFS Interim Financial Statement IGR Intergovernmental RelationsIYM In-Year Monitoring MEC Member of Executive CouncilMFMA Municipal Finance Management ActMPAT Management Performance Assessment ToolMTEC Medium Term Expenditure CommitteeMTEF Medium Term Expenditure FrameworkMTBPS Medium Term Budget Policy Statement MTSF Medium Term Strategic FrameworkNT National TreasuryOoP Office of the PremierPBC Premier’s Budget CommitteePFMA Public Finance Management ActPPP Public–Private PartnershipQPR Quarterly Performance ReportSCOA Standard Chart of AccountsSCM Supply Chain ManagementSDIP Service Delivery Improvement PlanSERO Socio Economic Review and OutlookSMME Small Medium and Micro EnterprisesSP Strategic PlanTER Township Economy RevitalisationTMR Transformation Modernisation and ReindustrialisationTR Treasury Regulations
List of Abbreviations/ Acronyms
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Kind regards
_________________Ms Nomantu Nkomo-Ralehoko MEC: Finance and e-Government
Foreword by the MEC
Ms Nomantu Nkomo-RalehokoMEC of Finance and e-Government
This Annual Report provides comprehensive information on the performance of Gauteng Provincial Treasury (GPT) in the 2018/19 financial year in respect to its targets set for that period. However, it is important that as we report for a single financial year of 2018/19, a thought and a reflection is cast over the entire mandate period under review since this particular report is a culmination and closing a five year term of the 5th Administration.
The mandate was predicated on the multi pillar programme of radical transformation, modernisation and re-industrialisation of Gauteng Province as we build an integrated City region characterised by social cohesion and economic inclusion.
This report is published to promote public accountability and transparency in the efficiency and effectiveness of government and the theme of this report itself is around continuity and change as it bridges the 5th to 6th Administration.
The period under review was organised around five strategic outcome oriented goals derived from the mandate which are set out in Gauteng Provincial Treasury’s strategic plan as follows:
• Promoting better planning and budgeting synergy across all spheres of government; • Sustainable financing and funding; • Effective and efficient financial management; • Perform all treasuries statutory obligations and promote transparent and accountable governance; and • Support radical economic transformation.
Some of the key achievements of the 2018/19 financial year as guided by these strategic goals includes the following:
I am pleased to report that substantial progress was achieved in the 2018/19 financial year as guided by these strategic goals and an effective intergovernmental relations fora (IGR) particularly the Budget Committee, and Medium Term Expenditure Committee (MTEC), CFOs forum, MEC/MMC meetings, produced much improved planning and budgeting across all spheres to support provincial priorities as well as align with IDPs of municipalities to maximise impact of project/ programme delivery.
The current budget allocation and revenue are still able to finance and fund our overall province wide government priorities however, there is still a window of opportunity to mobilise private sector partnership and manage the cost as well as expenditure side in order to achieve more with less.
The general economic climate and stunted economic growth limit available options for sustainable financing and funding but our province has attracted more investment
which bodes well for our sustainable financing and funding going forward.
Gauteng Infrastructure Financing Agency (GIFA) will have to step up in the conceptualisation and packaging of projects that are attractive to the markets as well as the investment community to mobilise financing and funding.
The Department has maintained a prudent, effective and efficient financial management which has produced outstanding results for our province with high spending on infrastructure projects and only funded projects that were ready for implementation.
Expenditure on infrastructure and conditional grants were monitored and tracked, with spending achievements at 97% and 94% of their budgets, respectively and simultaneously ensured efficient spending on provincial transfers to municipalities.Gauteng Provincial Treasury maintained a clean audit outcome, and this was for the 6th consecutive year. It showed that this department, yet again, led by example in the implementation of its mandate of ensuring that all provincial financial resources are managed effectively, in a manner that promotes transparency, accountability and delivery of services to the public.
To promote clean government, fight fraud and corruption and restore public’s trust in procurement process, Treasury continued to champion the Open Tender system and through this initiative, provincial government saved R1.2 billion in possible irregular expenditure as a result of the probity process and public adjudication of tenders which ensured greater compliance and accountability.
To support the Township Economy Revitalisation Strategy, Treasury worked very closely with departments to provide opportunities to small businesses, which resulted in a total of R2.8 billion being spent on township enterprises.
In line with government’s commitment to ensure that departments pay small businesses in particular township suppliers on time; Treasury paid all invoices received for services rendered within 30 days in the 2018/19 financial year. In fact, 96% of these were paid within 15 days.
We could not have done or achieve these milestones without the support our stakeholders who have taken a keen interest in the business of our government and through this report, stakeholders including the citizens can gain insight into the work of the department. To this end, active citizenry is very important to our work and to influence our programmes to improve service delivery and this further enhances trust and confidence in government service delivery mechanism.
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Ms Nomfundo TshabalalaHead of Department: Gauteng Provincial Treasury
Overview of the Operations of the Department
The key focus areas of the Gauteng Provincial Treasury, amongst others is primarily to promote good governance by providing stewardship on all financial matters in the province, to increase transparency as well as accountability towards the effective and efficient management of financial resources. Furthermore, GPT ensures that social and economic development is funded through projects and other initiatives aligned to the provincial priorities and improve liquidity management in the province.
In the 2018/19 financial year, the department continued to support the implementation of the GPG Transformation, Modernisation and Reindustrialisation (TMR) programme. The GPT contributed directly to three pillars of the TMR programme, namely, Pillar 1 - radical economic transformation, Pillar 4 - transformation of state and governance and Pillar 5 - modernisation of the public service.
The key achievements of the department in the 2018/19 that enabled service delivery are outlined below:
PILLAR 1: RADICAL ECONOMIC TRANSFORMATION
To create an enabling environment for township-based SMMEs to do business with GPG
The key focus area for the Township Economy Revitalisation strategy is the revitalising and mainstreaming of the township economy and the development of SMME’s and cooperatives. The department continued with efforts to expand the pool of suppliers available to do business with government, resulting in 6 993 suppliers registered on the provincial database. Inclusion and sustainability of emerging enterprises are key elements in the acceleration of economic transformation. This is achievable through empowerment which entails a combination of supplier development, access to finance and markets in the mainstream economy. In this regard, the department continued with the implementation of various supplier development initiatives which have been established through partnerships with the private sector. This resulted in a total of 1455 suppliers undergoing training in the year under review. This training ensured that they are fully compliant with government prescripts relating to procurement as well as capacitated to meet the supply needs of government and compete within the private sector market.
The GPT’s contribution to revitalizing townships, entailed leveraging procurement to transform the economy. In the 2018/19 financial year all GPG departments have spent a total of R2.8 billion, accounting for 13% of their total procurement on township suppliers.
PILLAR 4: TRANSFORMATION OF STATE AND GOVERNANCE
Promoting better planning and budgeting synergy across all spheres of government
Synergy in the three spheres of government promotes better planning and budgeting resulting in an integrated and credible planning framework which will ensure alignment of plans across the three spheres of government. Synergising processes is an integral element in ensuring that provincial priorities are strategically resourced with the potential to accelerate service delivery for the Gauteng citizenry and realise economies of scale.
Report of the Accounting Officer
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The department has coordinated budget planning processes and facilitated stakeholder engagements through convening of Budget Fora and Medium-Term Expenditure Committee (MTEC) meetings. At the local government level, various IGR engagements (CFO Forum, MEC/MMC meetings, Premiers Coordinating Forum) were held to ensure alignment of IDPs and budgets with the TMR programme. Timeous draft and final municipal budget assessments were conducted.
Ensuring balanced budgeting and sustainable funding for legislative mandates and strategic priorities of the province
Adequate funding is required to ensure implementation of the TMR programme, as such credible main and adjustment budgets were tabled at the appropriate timelines. The department has put measures in place to ensure that own revenue targets as outlined in the Provincial Revenue Strategy are realised, resulting in the collection of R6.8 billion own revenue, an overcollection of 11.4% against the adjusted appropriation.
Ensuring that approved financial resources are spent efficiently, effectively and economically across the province
The GPT is managing the compensation budget within GPG to ensure that personnel costs is maintained below 60%. Intensified monitoring of this expenditure has resulted in personnel costs being kept at 55% of the total budget. Delivery of infrastructure supports the provision of public services and contributes to the creation of jobs. To ensure high spending on infrastructure projects, the department only funded projects that were shovel-ready for implementation. Expenditure on infrastructure and conditional grants were monitored and tracked, with spending achievements at 97% and 94% of their budgets, respectively. The department ensured efficient spending on provincial transfers to municipalities. Furthermore, enhanced oversight through performing fiscal responsiveness assessments were undertaken in all 8 delegated municipalities for every quarter of the financial year.
The province’s liquidity levels have remained steady and sustainable, due to the implementation of prudent cash management practices which ensured that cash-outflows did not exceed provincial revenue streams.
Supporting all departments, entities and municipalities to achieve unqualified audits
The GPT continued to work closely with departments, entities and municipalities to ensure sustainability and improvement of the audit outcomes. All GPG departments and entities have achieved unqualified audit outcomes for the 2017/18 financial year. Risk-based internal audits conducted by GAS assist departments and entities to limit their risk exposure and improve their internal control environments. To this effect, 92% of the approved internal audits plans were implemented.
Reducing fraud and corruption and promoting clean government across the province
The GPG is committed to fight fraud and corruption in the public service to construct and advocate for a capable, responsive, accountable, clean and activist government machinery. The five key pillars of Deterrence, Prevention, Detection, Investigation, Sanctions and Recovery as espoused in the Forensic Services strategy are at the centre of fighting and eradicating fraud and corruption in the GPG. The GPT has worked closely with departments to fast-track implementation of recommendations of fraud detection reviews to expedite action against maladministration, incompetence and corruption. The results of detection reviews have assisted in the identification of risk areas and development of control measures to tighten processes and systems to minimize fraud and corruption.
One of the key projects in fighting corruption is the implementation of the open tender process which has been implemented by all GPG departments. A total of 112 projects were subjected to the open tender process. The open tender system has through its probity audit process assisted the provincial government to avoid possible irregular expenditure of R1.2 billion from irregular expenditure.
Ensuring that statutory obligations are met and that decision makers facilitate appropriate interventions
Compliance with rules and regulations is key in the fulfilment of the GPT’s mandate. This is achieved by ensuring timeous submissions of credible reports to various key stakeholders. The GPT has fulfilled all its reporting requirements for the period under review. The Gauteng Provincial Treasury has put measures and processes in place to ensure timeous payment of invoices within 30 days upon receipt of final and correct invoices. During the period under review, 100% of all invoices received were paid within 30 days. From the total invoices, the department was able to pay 96% within 15 days.
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One of the government systems that assess compliance in management practice is MPAT – Management Performance Assessment Tool. MPAT is a system that assess compliance and the quality of management practices in four key performance areas of strategy management, governance and accountability, human resource management and financial management. The GPT achieved a rating of 3.6 out of 4 in the 2018 cycle and has already put interventions in place to ensure compliance to all MPAT standards and requirements in the next cycle.
PILLAR 5: MODERNISATION OF THE PUBLIC SERVICE
Innovation, modernisation and technology enable service delivery improvement through an increase in productivity and enhancement of operational efficiencies. In this regard, the GPT continued to develop business intelligence tools as a way of working smarter, driving functional excellence and improving service delivery in GPG. The department won 3 prizes in the Centre for Public Sector Innovation Awards, on the following categories:
• 2nd runner-up - Innovative use of ICT for service delivery solutions category - Purchase Card project• 2nd runner up - Innovative enhancements of systems category - E invoicing • 3rd runner up - Innovative enhancements of systems category - BI Tool, BAS system.
Overview of the Financial Results of the Department
Departmental Receipts2018/2019 2017/2018
Departmental Receipts Estimate Actual Amount Collected
(Over)/Under Collection
Estimate Actual Amount Collected
(Over)/Under Collection
R’000 R’000 R’000 R’000 R’000 R’000
Sale of goods and services other than capital assets
900 647 253 1050 834 216
Transfers received
Interest, dividends and rent on land
580 000 853 671 (273 671) 450 000 619 878 (169 878)
Sale of capital assets 8 (8) 95 (95)
Financial transactions in assets and liabilities
500 314 186 450 633 (183)
Total 581 400 854 640 (273 240) 451 500 621 440 (169 940)
The department maximised opportunities to generate revenue by investing equitable share of the province before it is due for utilisation. This resulted in higher than anticipated positive balances in the provincial reserves.
GPG Own Revenue Collected2018/2019 2017/2018
GPG Own Revenue Receipts Estimate Actual Amount Collected
(Over)/Under Collection
Estimate Actual Amount Collected
(Over)/Under Collection
R’000 R’000 R’000 R’000 R’000 R’000
GPG Revenue Collection 6 144 380 6 845 276 700 896 5 382 370 6 087 032 704 662
The department has put measures in place to ensure that own revenue targets as outlined in the Provincial Revenue Strategy are realised, resulting in the collection of R6.8 billion own revenue, an over collection of 11.4% against the adjusted appropriation.
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Programme Expenditure 2018/2019 2017/2018
Programme Name Final Appropriation Actual Expenditure
(Over)/Under Expenditure
Final Appropriation
Actual Expenditure
(Over)/Under Expenditure
R’000 R’000 R’000 R’000 R’000 R’000
Administration 143 769 132 194 11 575 135 576 132 861 2 715
Sustainable Resource Management
148 464 145 130 3 334 141 832 140 558 1 274
Financial Governance 162 823 157 529 5 294 140 040 135 622 13 418
Provincial Supply Chain Management
111 953 107 996 3 957 103 532 96 648 6 884
Municipal Financial Governance 45 368 44 955 413 44 896 43 471 1 425
Gauteng Audit Services 93 286 88 529 4 757 80 031 76 799 3 232
Total 705 663 676 333 29 330 654 907 625 959 28 948
The department’s expenditure was recorded at R676 million or 96% of the final appropriation and an under-spending was recorded at R29 million or 4% of the final appropriation. This was in the main as a result of vacancies which stood around 7% by year end. Furthermore, desktop computers were procured but were still to be delivered by end of March 2019.
Virements /Roll Over• The department shifted budget within programmes to align resources to programme expenditure at year-end. The department
applied for a roll-over amounting to R5.3 million in order to pay for computer desktops that were procured in 2018/19 FY. The virements and roll over was done in compliance with the PFMA.
Unauthorised, Fruitless and Wasteful Expenditure• The Department did not have any unauthorised, fruitless and wasteful expenditure.
Future Plans of the Department• The department will continue with the enhancement of value for money through strengthening institutional capacity and
capability through the Infrastructure Development Management System project. • The Gauteng Finance Management Supplementary Act, which promulgates the Open Tender principles was adopted in the
Gauteng Legislature. The GPT will be drafting regulations, which will unpack specific activities that will govern Open Tender implementation procedures.
• In line with the MFMA requirements, the GPT will intensify its oversight, guidance and support of both Emfuleni and West Rand municipalities financial recovery plans.
• Accelerate implementation of OHS compliance matters in conjunction with the department of e-Government and Infrustructure Development to promote a healthy and safe working environment.
Public Private Partnerships (PPPs)• The Department does not have any registered PPPs, as it only plays a transactional advisory and oversight role in this area
for the provincial government and municipalities. Through its government component, namely GIFA, the department plays a critical role in preparing primarily infrastructure projects for potential funding through PPPs.
Discontinued Activities / Activities to be Discontinued • The Department does not have any discontinued activities / activities to be discontinued.
New or Proposed activities • The Department does not have any new or proposed activities.
Supply Chain Management• There were no unsolicited bid proposals concluded for the year under review.• Procurement of goods and services is centralised in the procurement unit within the office of the Chief Financial Officer. This
enables the unit to ensure that procurement is done in accordance with the legislative framework. The procurement unit also regularly meets with end users to advice on procurement matters to ensure that SCM processes and procedures which are
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in place are adhered to and to prevent irregular expenditure. • Procurement in the department has purely been driven by our approved demand plan which is prepared, implemented and
monitored in-line with the PFMA.
Gifts and Donations Received in Kind from Non-Related Parties • For the 2018/19 financial year; there were no declarations made in the departmental register for Gifts/Sponsorships /
Donations received by the GPT.
Exemptions and Deviations Received from the National Treasury • The Department did not have any exemption or deviations received from National Treasury.
Events after the Reporting Date• The sixth administration has come into office, and priorities and plans will be aligned and implemented accordingly.
Acknowledgements/AppreciationI am grateful for the MEC’s support and guidance, and all staff of the Gauteng Provincial Treasury for their diligence and contribution towards the achievement of the department’s mandate. As we usher in the 6th administration, it is critical that we ensure that our plans are aligned to the priorities of the new administration and we double our efforts to achieve the intended outcomes.
_____________________Ms Nomfundo TshabalalaAccounting Officer Gauteng Treasury
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To the Best of My Knowledge and Belief, I Confirm the Following:
All information and amounts disclosed throughout the annual report are consistent.
The annual report is complete, accurate and is free from any omissions.
The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury.
The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks and guidelines issued by the National Treasury.
The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information.
The Accounting Officer is responsible for establishing and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.
The external auditors are engaged to express an independent opinion on the annual financial statements.
In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the department for the financial year ended 31 March 2019.
Yours faithfully
_________________Ms Nomfundo TshabalalaAccounting Officer
Statement of Responsibility and Confirmation of Accuracy for the Annual Report
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1. VisionTo provide strategic leadership in financial and fiscal matters to ensure sustainable and inclusive social and economic development of the people of Gauteng so that all may enjoy value for money services of the highest quality.
2. MissionWe are an activist Treasury that enables and promotes quality service delivery for the citizens of Gauteng through:
• sustainable funding that ensures developmentally focused allocation of resources and innovative revenue generation• efficient cash management that ensures sustainable liquidity levels in the province • effective financial management and reporting that ensures responsible stewardship and transparent resource utilisation and
expenditure• a well-structured governance framework that ensures accountability, transparency and fiscal discipline in line with statutory
obligations
3. ValuesThe values and principles that underpin the Gauteng Provincial Treasury are predicated on the principles of Batho Pele:
Strategic Overview
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Legislative Mandates
Gauteng Treasury Derives its Mandate From the Following Legislation:
The Constitution of the Republic of South Africa (Act 108 of 1996) The Mandate and environment within which National, Provincial and Local Government Financial Departments and Treasuries operate, is specifically described in Chapter 13: General Financial Matters.
Division of Revenue Act To provide for the equitable division of revenue raised nationally, inclusive of conditional grants, amongst the three spheres of government and matters incidental thereto.
Basic Conditions of Employment Act, 1997 (Act 75 of 1997) To provide regulatory prescripts, in addition to the Public Service Act, 1994 and the Public Service Regulations, 2001, regarding the conditions of employment of staff in the Treasury.
Borrowing Powers of Provincial Government Act, 1996 (Act 48 of 1996) To provide norms and conditions which the Treasury must adhere to in negotiating loans for the Provincial Government.
Employment Equity Act, 1998 (Act 55 of 1998) To regulate the processes and procedures of the Treasury in achieving a diverse and competent workforce broadly representative of the demographics of Gauteng and eliminating unfair discrimination in employment towards implementing employment equity.
Intergovernmental Fiscal Relations Act, 1997 (Act 97 of 1997) To define the role of the Minister of Finance and Economic Development and that of the Treasury as representatives of the Provincial Government, in promoting co-operation between other spheres of government on fiscal, budgetary and financial matters; to provide insight into the prescribed processes for the determination of the equitable share and allocation of revenue raised nationally and for matters in connection therewith.
Labour Relations Act, 1995 (Act 66 of 1995) To regulate and guide the Treasury in recognizing and fulfilling its role in effecting labour harmony and the democratization of the workplace.
Municipal Finance Management Act (2004) To support and monitor financial management in municipalities.
Municipality Systems Act (2000) and Development Facilitation Act (1995) To support and monitor municipal IDP processes.
Preferential Procurement Policy Framework Act (2000) To provide a framework for implementation of preferential procurement policy.
Promotion of Access to Information Act, 2000 (Act 2 of 2000) To give effect to the constitutional right of access to any information held by the State and any information that is held by another person and that is required for the exercise or protection of any rights; and to provide for matters connected therewith.
Public Finance Management Act, 1999 (Act 1 of 1999) To regulate financial management in the Treasury to ensure that all revenue, expenditure, assets and liabilities of the Treasury are managed efficiently and effectively; to provide for the responsibilities of persons entrusted with financial management in the Treasury and to provide for matters connected therewith. To fulfill all Treasury responsibilities with respect to other departments and public entities.
Public Service Act, 1994 (Act 103 of 1994) To provide for the organization and administration of the Treasury and for human resource management, this includes the regulation of conditions of employment, terms of office, discipline, retirement and discharge of staff members of the Treasury.
Legislative and Other Mandates
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The Gauteng Infrastructure Financing Agency (GIFA) which is a government component is mandated to develop infrastructure project concepts and ideas to bankable proposals. GIFA also provides innovative infrastructure financing solutions and facilitates funding sources through partnerships of private investors, development finance institutions and government. This mandate supports one of the objectives of the Gauteng Provincial Treasury, which is to ensure balanced budgeting and sustainable funding for legislative mandates and strategic priorities of the province. The department has transferred R58 million to GIFA in the 2018/19 financial year.
Sustainable Fiscal Resource
Management
ProvincialSupply ChainManagement
FinancialGovernance
Office ofthe ChiefFinancialOfficer
GautengAudit
Services
MunicipalFinancial
Governance
Chief Directorate:CorporateServices
Chief Directorate:Strategy Management
MEC
HOD
Organisational Structure
Entities Reporting to the MEC
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PART B: PERFORMANCE INFORMATION
1. Report Of The Auditor-General: Predetermined Objectives 18
2. Overview Of Departmental Performance 18
3. Strategic Outcome Oriented Goals 21
4. Performance Information By Programme 23
5. Linking Performance With Budgets 35
6. Outlook For The Coming Financial Year (2018/2019) 36
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1. Auditor General’s Report: Predetermined Objectives
The AGSA currently performs certain 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 report on the audit of the annual performance report heading in the auditor’s report.
Refer to page 74 of the Report of the Auditor General, published as Part E: Financial Information.
2. Overview of Departmental Performance
2.1 Service Delivery Environment
The Gauteng Provincial Treasury continued to implement the departmental strategic pillars which align to the Gauteng Provincial Government’s Transformation, Modernisation and Reindustrialisation (TMR) programme.
Promoting Better Planning and Budgeting Synergy Across All Spheres of GovernmentThe department hosted various bilaterals like the Budget Lekgotla, Budget Fora, Premier’s Budget Committee and Inter-Governmental Relations structures where we engaged on budget plans ensuring alignment to the TMR programme and other key policies and strategies adopted by the provincial government. This continued engagement has ensured participation by all stakeholders in streamlining planning processes, creating synergy and improving the credibility of planning processes in the different spheres of government.
Sustainable Financing and FundingThe implementation of the revenue enhancement strategy, which was adopted by the Executive Council has resulted in own revenue targets being realised. The department has increased its Provincial Revenue Generation through partnerships with Gauteng Government Provincial departments.
To improve municipal revenue collection, the department partnered with COGTA and other relevant stakeholders to deal with the rising municipal debt issue and implemented necessary interventions. Additionally, a municipal fiscal responsiveness assessment has been conducted to ensure that municipal financial management systems are more effective in revenue collection, ensuring debtor’s database is correct and billing is accurate.
The Gauteng Provincial Treasury continued to assist departments to further re-prioritise budgets as a result of limited fiscal resources and assisted them to reduce accruals.
Efficient and Effective Financial Management The department has made strides in the improvement of financial management in the province and continued to provide structured training to provincial departments, entities and local municipalities to ensure that best practices in financial management are being implemented and adhered to. The department also continued working with COGTA in providing support to local municipalities.
The province has begun to see positive results in the implementation of the cost containment strategy as there has been a reduction in non-core line items’ budgets. Prudent cash management practices have resulted in sustainable liquidity levels in the GPG. Additionally, the introduction and roll-out of various business intelligence (BI) tools has improved efficiencies in financial management and enhanced data integrity and credibility.
Supporting all Departments, Entities and Municipalities to Achieve Unqualified AuditsThe various interventions by the department have resulted in an improvement in audit outcomes. The department provided technical support and together with structured and targeted training assisted in addressing issues raised by the Auditor General to ensure that the province moves towards sustaining unqualified audit outcomes in all its institutions.
Tracking tools to monitor the implementation of the Auditor General recommendations for departments and local municipalities were enhanced, thus reducing recurring audit findings. The Gauteng Audit Service function conducted planned risk based internal audits which were key in assisting provincial institutions to improve their audit outcomes.Support Radical Economic Transformation
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The key focus area for the township economic revitalisation (TER) strategy is the revitalisation and mainstreaming of the township economy and the development of SMME’s and cooperatives through transformative procurement policies that promote the growth of township-based suppliers. The department supported provincial initiatives in driving radical economic transformation in the province. The combined efforts of GPG departments, entities and local municipalities, to support the TER strategy resulted in an increase in the number of registered township suppliers.
To improve the GPG market share for township enterprises, partnerships have been established with the private sector to develop suppliers in designated sectors and ensure that suppliers are knowledgeable on compliance issues relating to procurement practices in government.
It is important that for SMMEs and cooperatives to sustain themselves and continue to render services to government, that government ensures timeous payment of invoices. The Gauteng Provincial Treasury continued to monitor and improve on the timeous payment of suppliers.
Perform all Statutory Obligations and Promote Transparent and Accountable GovernanceTimeous submission of credible statutory and regulatory reports is fundamental to a treasury’s function. The GPT has fulfilled all its reporting requirements for the period under review. The GPT achieved a score of 3.6 for the 2018 MPAT cycle and has put interventions in place to ensure compliance to all MPAT standards and requirements in the next cycle. The GPT has also maintained unqualified audit outcomes for six years in a row.
The 5th administration in Gauteng aimed to construct a capable, responsive, accountable, clean, activist government machinery. As a result, various interventions were put in place to realise this and one of the key projects was the implementation of the open tender system by government institutions. In accelerating the implementation of the open tender system, the GPT worked towards implementing 100% of government procurement through the open tender system by 2019.
The department implemented the Forensic Services strategy which focuses on five pillars namely; Deterrence, Prevention, Detection, Investigation and Sanctions and Recovery, to ensure the reduction of fraud and corruption within the GPG.
Service Delivery Improvement Plan (SDIP)The intention of developing the SDIP is to facilitate the commitment of state institutions to continuous service delivery improvement in the quality of the actual service being provided and the manner in which the service is delivered. The department (GPT) has an approved three-year SDIP plan and the relevant units’ report progress on the plan each quarter as per the directive by the Department of Public Service and Administration. This annual report was compiled against the annual targets for 2018/19 financial year as reflected in the 2018/19-2020/21 Plan.
Main Services and StandardsMain services Beneficiaries 2017/18 Achievement Desired Standard
of Service 2018/192018/19 Achievement
Provision of training for the development of suppliers
Township enterprises Conducted 55 workshops 1132 suppliers undergoing development programme with partners
5 week rolling training for 44 weeks of the year
1455 suppliers underwent development programme
5 week rolling training for 44 weeks of the year were held
GPG Capacity Development GPG staff New indicator Provide training on the identified no. of courses
Consulted with stakeholders on identified courses and developed a plan.
• Training on 5 courses was conducted –
• Anti-Corruption for Practitioners
• Investigate Corrupt Activities and Related Offences
• Ethics Management Course.
• Contracts management and enhancements
• MFMA regulations
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Batho Pele arrangement with beneficiaries (Consultation access etc)
Consultation Current/Actual Arrangements Customers Actual Achievements
Conduct 4 quarterly consultation sessions with departments and municipalities
Departments and municipalities 5 SCM Forums were conducted
Develop and maintain Stakeholder (internal and external) relationships
Develop and maintain stakeholder relationships through constant engagements to ensure timeous, responsive and proactive solutions to clients’ needs
4 engagement sessions were held with GPG departments
AccessAccess Strategy Actual Achievements
In-person contactPhoneEmail
Assistance for self-registration provided
Suppliers use the supplier management helpdesk to access information regarding:• Registration Status• Completion of Forms• Updating of Supplier Profiles• Cubicles with Electronic Access• Registration Status on Centralised Supplier Database (CSD)
Service Delivery Information ToolType of Information Tool Actual Achievements
Help Desk SUS (Supplier Self-Service) for online registration is now implemented as part of the National Treasury Central Supplier Database
Website Advertisement and awards of bids were published through the e-Tender Portal
Quarterly Information Reports SCM policies and directives are accessible on the PSCM shared-drive
Complaints MechanismComplaints Mechanism Actual Achievements
Help Desk All supplier management queries are directed to a centralised procurement services email address. [email protected]
Check again Service Email The department responded to enquiries and requests within the agreed time frames.
2.2 Organisational Environment
The department finalised its organisational structure in line with its capacity requirements and in adherence to the National Treasury’s call for generic structures for Provincial Treasuries. The approved structure will address capacity issues and enable the department to effectively and efficiently support provincial departments, public entities and local municipalities in the acceleration of service delivery by streamlining its functions and having key focus areas.
During the financial year, the department provided resources to staff for skills and development through bursaries and short course training.
2.3 Key Policy Developments and Legislative Changes
There were no changes to policies or legislation that affected the operations of the Gauteng Provincial Treasury during the 2018/19 financial year.
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
3. Strategic Outcome Oriented Goals
The strategic oriented goals of the department are cascaded from its mandate and reflect alignment with the Gauteng Provincial Government’s TMR Programme. These are set out in GPT’s strategic plan as follows:
• Promoting better planning and budgeting synergy across all spheres of government• Sustainable financing and funding• Effective and efficient financial management• Perform all treasuries statutory obligations and promote transparent and accountable governance • Support radical economic transformation
Promoting Better Planning and Budgeting Synergy Across All Spheres of Government
Synergy in the three spheres of government promotes better planning and budgeting resulting in an integrated and credible planning framework which will ensure alignment of plans across the spheres of government. Aligning processes is an integral element in ensuring that provincial priorities are strategically resourced with the potential to accelerate service delivery for Gauteng citizens and realise economies of scale.
The department has coordinated budget planning processes and facilitated stakeholder engagements through convening of Budget Fora and Medium-Term Expenditure Committee (MTEC) meetings. At the local government level, various IGR engagements (CFO Forum, MEC/MMC meetings, Premiers Coordinating Forum) were held to ensure alignment of IDPs and budgets with the TMR programme. Timeous draft and final municipal budget assessments were conducted.
Sustainable Financing and Funding
Adequate funding is required to ensure implementation of the TMR programme, as such credible main and adjustment budgets were tabled at the appropriate timelines. The department has put measures in place to ensure that own revenue targets as outlined in the Provincial Revenue Strategy were realised, resulting in the collection of R6.8 billion own revenue. This is an over-collection of 11% against the adjusted appropriation.
Effective and Efficient Financial Management
The GPT is managing the compensation budget within the GPG to ensure that personnel costs is maintained below 60%. Intensified monitoring of this expenditure has resulted in personnel costs being kept at 55% of the total budget. Delivery of infrastructure supports the provision of public services and contributes to the creation of jobs. To ensure high spending on infrastructure projects, the department only funded projects that were shovel-ready for implementation. Expenditure on infrastructure and conditional grants were monitored and tracked, with spending achievements at 97% and 94% of their budgets, respectively. The department ensured efficient spending on provincial transfers to municipalities. Furthermore, enhanced oversight through performing fiscal responsiveness assessments were undertaken in all 8 delegated municipalities for every quarter of the financial year.
The province’s liquidity levels have remained steady and sustainable, due to the implementation of prudent cash management practices which ensured that cash-outflows did not exceed provincial revenue streams.
Perform all Statutory Obligations and Promote Transparent and Accountable Governance
Compliance with rules and regulations is key in the fulfilment of the GPT’s mandate. This is achieved by ensuring timeous submissions of credible reports to various key stakeholders. The GPT has fulfilled all its reporting requirements for the period under review. The Gauteng Provincial Treasury has put measures and processes in place to ensure timeous payment of invoices within 30 days upon receipt of final and correct invoices. During the period under review, 100% of all invoices received were paid within 30 days. From the total invoices, the department was able to pay 96% within 15 days.
The GPT achieved a score of 3.6 for the 2018 MPAT cycle and has put interventions in place to ensure compliance to all MPAT standards and requirements in the next cycle.
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Support Radical Economic Transformation
The key focus area for the Township Economy Revitalisation strategy is the revitalising and mainstreaming of the township economy and the development of SMME’s and cooperatives. The department continued with efforts to expand the pool of suppliers available to do business with government, resulting in 6 993 township suppliers registered on the provincial database. Inclusion and sustainability of emerging enterprises are key elements in the acceleration of economic transformation. This is achievable through empowerment which entails a combination of supplier development, access to finance and markets in the mainstream economy. In this regard, the department continued with the implementation of various supplier development initiatives which have been established through partnerships with the private sector. This resulted in a total of 1455 suppliers undergoing training in the year under review. This training ensured that they are fully compliant with government prescripts relating to procurement as well as capacitated to meet the supply needs of government and compete within the private sector market.
GPT’s contribution to revitalizing townships, entailed leveraging procurement to transform the economy. Currently all GPG departments have spent a total of R2.8 billion on township suppliers, accounting for 13% of their total procurement.
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
4. Performance Information by Programme
4.1 PROGRAMME 1: ADMINISTRATION
PurposeThe programme aims to provide effective leadership, management and administrative support to the Treasury Programmes as well as the Member of the Executive Council (MEC) and the Accounting Office. This is done in fulfilment of the mission and mandate of the department.
Sub-Programmes• Office of MEC• Office of HOD• Financial Management Services• Corporate Management
Strategic ObjectiveTo ensure statutory obligations are met and that decision-makers facilitate appropriate interventions.
Key AchievementsThe department tracked all external audit recommendations before the next audit cycle ensuring effectiveness of its internal control to improve service delivery. All 1526 supplier invoices received during 2018/19 FY were paid within the prescribed timeline of 30 days, ensuring 100% compliance. The 2019/20 Annual Performance Plan was submitted to the GPL within the prescribed timeframes. The department employed and /or sponsored a total of 145 youth as interns and bursary recipients to support the Tshepo 1 million programme of the province.
Performance Indicators and Targets
Strategic ObjectivesADMINISTRATION
Strategic Objective Actual Achievement 2016/17
Actual Achievement 2017/18
Planned Target 2018/19
Actual Achievement 2018/19
Deviation from Planned Target to
Actual Achievement 2018/19
Comments on Deviations
To ensure statutory obligations are met and that decision makers facilitate appropriate interventions
100% compliance with regulatory and legislated reporting requirements
100% compliance with regulatory and legislated reporting requirements
100% compliance with regulatory and legislated reporting requirements
100% compliance with regulatory and legislated reporting requirements (36/36)
0 None
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Performance IndicatorsADMINISTRATION
Performance Indicator Actual Achievement 2016/17
Actual Achievement2017/18
Planned Target2018/19
Actual Achievement2018/19
Deviation from Planned
Target to Actual Achievement
2018/19
Comment on Deviations
Auditor General’s audit outcome for the department
Unqualified audit opinion with no other matters
Unqualified audit opinion with no other matters for the previous financial year
Unqualified audit opinion with no other matters in the audit report
Unqualified audit opinion with no other matters in the audit report
0 None
% of external audit report recommend-ations tracked before next audit cycle
100% of external audit report recommendations implemented before next audit cycle (5/5)
100% (13/13) of external audit report recommendation tracked before next audit cycle
100% 100% (14/14) 0 None
% of supplier payments paid within 30 days after receipt of correct invoice
99,6% (1726/1732) of supplier payments paid within 30 days after receipt of final and correct invoice
97% (1655/1701) of supplier payments paid within 15 days after receipt of correct invoice
100% of invoice 100% (1526/1526) 0 None
Number of youth developed in support of Tshepo 1 million
N/A 55 youth developed 140 145 5 above target Costs were lower than budgeted resulting in increased intake
Number of evaluations conducted
N/A 3 evaluations conducted
3 3 None None
Approved Annual Performance Plan submitted to GPL in line with prescribed timelines
N/A N/A 2019/20 Annual Performance Plan submitted to GPL in line with prescribed timelines
2019/20 Annual Performance Plan submitted to GPL in line with prescribed timelines
None None
Approved annual report submitted to GPL in line with prescribed timelines
N/A N/A 2017/18 Annual Report submitted to GPL in line with prescribed timelines
2017/18 Annual Report submitted to GPL in line with prescribed timelines
None None
Strategy to Overcome Areas of Under PerformanceThere are no areas of underperformance.
Changes to Planned Targets There were no changes to planned targets.
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
4.2 PROGRAMME 2: SUSTAINABLE FISCAL RESOURCE MANAGEMENT
PurposeTo ensure the effective and efficient administration of provincial and fiscal resources.
Sub-Programmes• Programme Support• Budget Management• Economic and Fiscal Policy Oversight• Infrastructure Management• Financial Assets and Liabilities Management• Public Finance
Strategic Objectives• To promote better planning, budgeting and resourcing synergy across all spheres of government in the province.• To ensure balanced budgeting and sustainable funding for legislative mandates and strategic priorities of the province• To ensure approved financial resources are spent efficiently, effectively and economically across the province.
Key AchievementsTo ensure sound and effective financial management, the actual transfer payments of the department did not exceed the quarterly projections as the deviation was within the accepted range of being less by 3%. The department conducted 14 MTEC sessions with GPG departments to ensure alignment to the TMR programme. The department has successfully tabled 3 budgets (2 adjustments and 1 main) in the 2018/19 FY. The SERO and MTBPS were tabled within the prescribed time line. It also ensured that the wage bill was contained at 55% against the target of 60%.
The department ensured effective financial management by maintaining cash disbursement to departments below provincial revenue streams. The department played a crucial role in ensuring that there was a 11% increase in own revenue collection against the target of 10%. The department maintained unqualified audit opinion with no other matters for audit outcomes for Provincial Revenue Fund.
Performance Indicators and Targets
Strategic ObjectivesSUSTAINABLE FISCAL RESOURCE MANAGEMENT
Strategic Objectives Actual Achievement 2016/17
Actual Achievement 2017/18R’000
Planned Target 2018/19
Actual Achievement 2018/19 R’000
Deviation from Planned Target to
Actual Achievement 2018/19
Comments on Deviations
To promote better planning, budgeting and resourcing synergy across all spheres of government in the province
Engagements with GPG department on the alignment of budgets to Provincial Plan were held as per the agreed timelines
Engagements with GPG department on the alignment of budgets to Provincial Plan held – 14 MTEC sessions15 budget fora
TMR priorities resourced by the provincial budget
TMR priorities were resourced by the provincial budget
0 None
To ensure balanced budgeting and sustainable funding for legislative mandates and strategic priorities of the province
14% increase in own revenue collected - (R5.8/R4.9) bn
GPG increased own revenue collection by 13% (R6 087 032) bn/ R5 382 370)
Optimization of own revenue collection in GPG
Own revenue collection in GPG was optimised
0 None
To ensure approved financial resources are spent efficiently, effectively and economically across the province
55% GPG wage bill against budget achieved (R104,393,507)
56% (R62 914 923 / R112 459) 393) of GPG wage bill allocated against budget
Maintain the wage bill at 60% of GPG allocated budget
55% of GPG wage bill against allocated budget (R67,236,331 / R121,761,929)
5% over achievement
Over achievement due to intensive monitoring of CoE expenditure
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Performance IndicatorsBUDGET MANAGEMENT
Performance Indicator
Actual Achievement 2016/17
Actual Achievement2017/18R’000
Planned Target2018/19
Actual Achievement2018/19R’000
Deviation from Planned Target to
Actual Achievement 2018/19
Comments on Deviations
Number of engagements conducted with GPG departments on the alignment of budgets to TMR programme
14 MTEC sessions held and MTEC resolution prepared
14 MTEC sessions were held and key MTEC resolutions were prepared
14 MTEC sessions held and Key MTEC resolutions prepared
14 MTEC sessions were held and key MTEC resolutions were prepared
0 None
15 Budget fora conducted
15 Budget fora conducted
15 Budget fora held 15 Budget fora were held
0 None
Number of budgets tabled in line with prescribed timeframes
1 credible MTEF budget that resources the 10 pillars tabled
1 MTEF budget that resources the TMR programme tabled
1 MTEF budget that resources the TMR programme tabled
1 MTEF budget that resources the TMR programme tabled
0 None
1 credible adjustment budget that resources the 10 pillars tabled
1 adjustment budget that resources the TMR programme tabled
1 adjustment budget that resources the TMR programme tabled
2 adjustment budgets that resources the TMR programme tabled
1 extra adjustment was done
Further allocations were made to fund provincial priorities
% variance between projections and actuals
Actual transfer payments did not exceed quarterly projections - less by 2% (R19,904,585/R20,334,320)
Actual transfer payments (R14 989 074) did not exceed the quarterly projections (R19 092 005)
Actual payments of transfer should not exceed the quarterly projections by 7%
Actual transfer payments did not exceed the quarterly projections - less by 1%(R20 634 849 / R20 794 242)
0 None
2% variance between projectionsand expenditure on personnel(-R1 019 525/R52 339 944)
Actual expenditure on CoE (R62,928,038)) did not exceed the quarterly projections (R62,428,369)
Actual expenditure on CoE should not exceed the quarterly projections by 7%
Actual expenditure CoE did not exceed the projections - - less by 3% (R67,615 694 / (R69,955,230)
0 None
Strategy to Overcome Areas of Under PerformanceThere are no areas of under performance.
Changes to Planned TargetsThere were no changes to planned targets.
Performance IndicatorsECONOMIC & FISCAL POLICY OVERSIGHT
Performance Indicator
Actual Achievement 2016/17
Actual Achievement2017/18R’000
Planned Target2018/19
Actual Achievement2018/19R’000
Deviation from Planned Target to
Actual Achievement 2018/19
Comments on Deviations
Average % increase of provincial own revenue
14% (R5.8bn/R4.9bn) increase in own revenue collection against main appropriation
13% increase in own revenue collected (R6,087,032 / R5,382 370)
10% 11.4% increase in own revenue collected (R6,845,276 /R6,144 380)
1.4% above target Over achievement due to high collection of own revenue by some departments
Tabling of SERO in line with prescribed timeframes
SERO published in Q4
SERO tabled SERO tabled SERO tabled 0 None
Tabling of MTBPS at Legislature in line with prescribed timeframes
MTBPS tabled in Q3 MTBPS tabled MTBPS tabled MTBPS tabled 0 None
Strategy to Overcome Areas of Under PerformanceThere are no areas of under performance.
Changes to Planned TargetsThere were no changes to planned targets.
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Performance IndicatorsINFRASTRUCTURE MANAGEMENT
Performance Indicator Actual Achievement 2015/16
Actual Achievement2016/17
Planned Target2017/18
Actual Achievement2018/19R’000
Deviation from Planned Target to
Actual Achievement 2017/18
Comments on Deviations
Number of infrastructure budgets tabled in line with prescribed timeframes
1 budget for infrastructure tabled as per the provincial budget
1 adjustment infrastructure budget tabled
2 3 1 extra adjustment was done
Further allocations were made to fund provincial priorities
% spent on infrastructure budget allocated by the GPT
96% spent on infrastructure allocation (R12.3 billion/ R12.8 billion)
97% (R11,247,587 bn) / (R11,609,111 bn) spent on infrastructure allocation
98% 97% (R11,102,092 / R11,475,842)
1% below target There were delays on some projects
Strategy to Overcome Areas of Under PerformanceTo ensure effective and sound financial management, GPT to continue encouraging the departments to plan accordingly so that the expenditure is realised throughout the financial year
Changes to Planned TargetsThere were no changes to planned targets
Performance IndicatorsFINANCIAL ASSET AND LIABILITY MANAGEMENT
Performance Indicator Actual Achievement 2016/17
Actual Achievement2017/18
Planned Target2018/19
Actual Achievement2018/19
Deviation from Planned Target to
Actual Achievement 2018/19
Comments on Deviations
AG audit outcomes for the Provincial Revenue Fund
Unqualified audit opinion with no other matters maintained
Unqualified audit opinion with no other matters
Unqualified audit opinion with no other matters
Unqualified audit opinion with no other matters
0 None
Cash outflows to departments within the provincial revenue streams (minimize liquidity exposure)
Disbursement to departments did not exceed
Disbursement to departments did not exceed appropriated funds
Cash disbursement to departments not to exceed appropriated funds appropriated funds
Disbursements to departments did not exceed appropriated funds
0 None
Strategy to Overcome Areas of Under PerformanceThere are no areas of under-performance.
Changes to Planned TargetsThere were no changes to planned targets.
Performance IndicatorsPUBLIC FINANCE
Performance Indicator Actual Achievement2015/16
Actual Achievement2016/17
Planned Target2018/19
Actual Achievement2018/19R’000
Deviation from Planned Target to
Actual Achievement 2018/19
Comments on Deviations
% spent on conditional grants allocation
99% (R18,627,553) / R18, 888, 641) spent on conditional grants
95% (R19, 851,968bn) / R20,819,249bn) spent on conditional grants allocations
98% 94% (R20,466,057 / R21,800 654)
4% below target Some contracts were not finalised on time
Strategy to Overcome Areas of Under Performance Delays will be proactively escalated to ensure that they are addressed timeously to increase spending on conditional grants.
Changes to Planned Targets There were no changes to planned targets.
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
4.3 PROGRAMME 3: FINANCIAL GOVERNANCE
PurposeTo promote accountability through substantive reflection of financial activities as well as compliance with financial norms and standards in PFMA compliant institutions.
Sub-Programmes• Programme Support• Provincial Accounting Services• Provincial Forensic Audits• Transversal Internal Audit and Risk Management • Compliance• Financial Information Management Systems
Strategic Objective• To support all departments, entities and municipalities to achieve unqualified audits.
Key AchievementsIn supporting other departments and public entities the department succeeded in tracking the implementation of audit recommendations. The department monitored the compliance to 30 days’ payments of suppliers in all department especially the three departments, i.e. Health, Education and Infrastructure Development. As part of fighting corruption, the department conducted 4 procurement related fraud detective reviews. The department updated 14 risk profiles for departments and developed a further 8 for municipalities.
Performance Indicators and Targets
Strategic ObjectivesStrategic Objectives Actual Achievement
2016/17Actual Achievement
2017/18Planned Target
2018/19Actual Achievement
2018/19Deviation from
Planned Target to Actual Achievement
2018/19
Comments on Deviations
To support all departments, entities and municipalities to achieve unqualified audits
95% of audit recommendation implemented by public entities before next audit cycle (73/77)
All departments achieved unqualified audit outcomes for 2016/17FY
Unqualified audit for consolidated AFS
Unqualified audit for consolidated AFS
0 None
All public entities achieved unqualified audit outcomes for 2016/17 FY
Unqualified audit for consolidated AFS
Unqualified audit for consolidated AFS
0 None
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Performance Indicators PROVINCIAL ACCOUNTING SERVICES
Performance Indicator Actual Achievement 2016/17
Actual Achievement2017/18
Planned Target2018/19
Actual Achievement2018/19
Deviation from Planned Target to
Actual Achievement 2018/19
Comments on Deviations
% of audit recommendations tracked at public entities before the next audit cycle
95% audit recommendations implemented by public entities before the next audit cycle (73/77)
100% (7/7) of audit recommendations tracked at public entities before the next audit cycle (issues relating to the AFS only)
100% 100% (54/54) 0 None
% of audit recommendations tracked at the departments before the next audit cycle
N/A New indicator 100% 100% (98/98) 0 None
% of departments with unqualified audit outcomes
N/A N/A 100% 100% (14/14) 0 None
% of public entities with unqualified audit outcomes
N/A N/A 100% 100% (19/19) 0 None
Strategy to Overcome Areas of Under Performance There are no areas of underperformance.
Changes to Planned Targets There were no changes to planned targets.
Performance IndicatorsFINANCIAL AUTOMATION MANAGEMENT SYSTEMS
Performance Indicator
Actual Achievement 2016/17
Actual Achievement2017/18
Planned Target2018/19
Actual Achievement2018/19
Deviation from Planned Target to
Actual Achievement 2018/19
Comments on Deviations
Number of reports produced on the monitoring of the compliance to 30 days payments in 3 departments (Health, Education and Infrastructure Development)
N/A 4 reports were produced on the monitoring of the implementation of 90% compliance of 30 days payments in three departments (Health, Education and Infrastructure Development)
4 4 0 None
Strategy to Overcome Areas of Under PerformanceThere are no areas of underperformance.
Changes to Planned Targets There were no changes to planned targets.
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Performance IndicatorsPROVINCIAL FORENSIC AUDITS
Performance Indicator
Actual Achievement 2016/17
Actual Achievement2017/18
Planned Target2018/19
Actual Achievement2018/19
Deviation from Planned Target to
Actual Achievement 2018/19
Comments on Deviations
Number of SCM procurement related fraud detection reviews conducted
N/A 100% (9/9) of planned fraud detection reviews conducted
4 4 0 None
Strategy to Overcome Areas of Under Performance There are no areas of under-performance.
Changes to Planned Targets There were no changes to planned targets.
Performance IndicatorsTRANSVERSAL INTERNAL AUDIT AND RISK MANAGEMENT
Performance Indicator
Actual Achievement 2016/17
Actual Achievement2017/18
Planned Target2018/19
Actual Achievement2018/19
Deviation from Planned Target to
Actual Achievement 2018/19
Comments on Deviations
Number of departments with updated risk profiles
Risk profiles for all 14 departments were developed by 31 March 2017
Updated risk profiles for all 14 departments by 31 March 2018
14 departments with updated risk profiles
14 departments with updated risk profiles
0 None
Number of municipalities with risk profiles developed
N/A Developed risk profiles for 2 municipalities:-Emfuleni-Mogale City
8 municipalities with risk profiles developed
8 municipalities with risk profiles developed
0 None
Strategy to Overcome Areas of Under PerformanceThere are no areas of underperformance.
Changes to Planned Targets There were no changes to planned targets.
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
4.4 PROGRAMME 4: PROVINCIAL SUPPLY CHAIN MANAGEMENT
PurposeTo promote and enforce transparency and effective Supply Chain Management in the province.
Sub-Programmes
• Supply Chain Management Norms and Standards, Governance, Compliance, Monitoring & Evaluation• SCM Client Support• Transversal Contract Management • Strategic Procurement
Strategic Objectives• To reduce fraud and corruption and promote clean governance across the province• To ensure that service providers (especially SMMEs from targeted groups) are registered and paid timeously
Key AchievementsAs part of strengthening supply chain management (SCM) in the province, the department implemented the open tender process in all 14 departments and 7 entities. The department trained 1455 township suppliers, exceeding its target of 1238 for 2018/19 financial year.
Performance Indicators and Targets
Strategic ObjectivesStrategic Objectives Actual
Achievement 2016/17
Actual Achievement 2017/18
Planned Target2018/19
Actual Achievement2018/19
Deviation from Planned Target to
Actual Achievement 2018/19
Comments on Deviations
To reduce fraud and corruption and promote clean governance across the province
59 Open Tender projects identified and implemented for all GPG departments
66% (R13.5bn / R20.5bn) of tenders processed through the open tender process in departments, municipalities & public entities
100% of tenders processed through the open tender process in departments, municipalities & public entities
96% of tenders processed through the open tender process in departments & public entities (156/162)
4% below target Some planned tenders were withdrawn
To ensure that service providers (especially SMME’s from targeted groups) are registered and paid timeously
Increased the number of township suppliers in GPG centralised database to 6000
Utilisation of township suppliers in the GPG centralised database has increased to 43.6% (4506/10340)
50% utilisation of township suppliers in the centralized database
10% of township suppliers in the centralised data base were utilised
40% below target Township suppliers are not involved in most high value commodities
Performance IndicatorsPROVINCIAL SUPPLY CHAIN MANAGEMENT
Performance Indicator Actual Achievement 2016/17
Actual Achievement2017/18
Planned Target2018/19
Actual Achievement2018/19
Deviation from Planned Target to
Actual Achievement 2018/19
Comments on Deviations
Number of Departments implementing the open tender process
59 Open Tender projects identified and implemented for all GPG departments
14 departments, 5 entities and 3 local municipalities implemented the open tender process
14 14 0 None
Number of entities implementing the open tender process
N/A 7 7 0 None
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Number of suppliers subjected to developmental training
N/A 1060 1238 1455 217 above target More suppliers invited in order not to compromise the set target
% spend directed to Gauteng Township suppliers
23.3% (R7,304bn/, R31,400 bn) spent on registered township suppliers
13.6% (R2,948 920,553/R21 637 453 891) was spent in procurement on registered Township suppliers
30% 13% (R2,829,984,159 / R22,421,161,729)
17% below target Low spending by departments in townships due to the type of goods and services available (lack of high value goods and services)
Number of compliance reports produced to monitor government procurement above R30 million subcontracted to SMEs
N/A N/A 4 4 None None
Strategy to Overcome Areas of Under PerformanceThere will be further engagement with all stakeholders during 2019/20FY to increase spending in procurement on registered township suppliers.Changes to Planned TargetsThe target for suppliers undergoing supplier development was adjusted to 30%.
4.5 PROGRAMME 5: MUNICIPAL FINANCIAL GOVERNANCE
PurposeTo ensure effective and efficient management in municipalities and municipal entities and coordinate the provisioning of capacity building.
Sub-Programmes• Local Government Financial Services• Municipal Accounting & Asset Management• Municipal Compliance and Financial Management Support• Programme Support
Strategic Objectives• To promote better planning, budgeting and resourcing synergy across all spheres of government in the province• To support all departments, entities and municipalities to achieve unqualified audits
Key AchievementsTo ensure effective and efficient management in municipalities and municipal entities, the department successfully conducted 16 budget assessments at local municipalities and also assessed their SDBIP’s. The department ensured that the utilisation of funds by municipalities in line with the gazetted conditions framework, reached 77%, against the annual target of 75%. Furthermore, the department conducted 32 municipal fiscal responsiveness assessment in the 8 local municipalities and produced 4 reports on the reduction of confirmed provincial government debt that is over 90 days.
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Performance Indicators and Targets
Strategic ObjectivesStrategic Objectives Actual Achievement
2016/17Actual Achievement
2017/18Planned Target
2018/19Actual Achievement
2018/19Deviation from
Planned Target to Actual Achievement
2018/19
Comments on Deviations
To promote better planning, budgeting, and resourcing synergy across all spheres of government in the provinces
All local municipalities’ (8) capital budgets and IDPs were aligned to the corridors and TMRs through the IDP and budget engagements
TMR priorities resourced by the provincial budget
TMR priorities resourced by the provincial budget
TMR priorities resourced by the provincial budget
0 None
To support all departments, entities and municipalities to achieve unqualified audits
92% of audit recommendations on AFS and accounting standards were implemented by local municipalities before the next audit cycle (77/84)
All local municipalities obtaining unqualified audits for 2016/17 FY
All local municipalities obtaining unqualified audits
All local municipalities obtained unqualified audit outcomes
0 None
Performance IndicatorsLOCAL GOVERNMENT FINANCIAL SERVICES
Performance Indicator Actual Achievement 2016/17
Actual Achievement2017/18
Planned Target2018/19
Actual Achievement2018/19R’000
Deviation from Planned Target to
Actual Achievement 2018/19
Comments on Deviations
Number of budget assessments conducted for delegated municipalities
8 local municipalities final budget assessments were conducted
16 budget assessments were conducted at local municipalities
16 16 0 None
Number of municipal SDBIP assessments conducted for delegated municipalities
8 local municipalities final budget assessments were conducted
8 municipal SDBIP assessments were conducted
8 8 0 None
Number of reports produced on the reduction of confirmed provincial government debt that is over 90 days
90% (R1,451,289,435/R1,610,25 8,000) of funds were utilised
2.8% (R370,808m/R360,702m) increase of confirmed provincial government debt that is over 90 days as at 31 March 2018
4 4 0 None
% spent on provincial transfers to municipalities
90% (R1,451,289,435 / R1,610,258,000) of funds were utilised in line with the conditions for 2015/16 FY
83% (R1,323bn / R1,590bn) was spent on provincial transfers to municipalities
75% 77% (R1,360, 243 / R1,755,724)
2% above target There was continuous monitoring and engagement with stakeholders resulting in higher than target achievement
Number of Municipal Fiscal Responsiveness Assessments conducted for delegated municipalities
Municipal Fiscal Responsiveness Assessment conducted in 8 municipalities
32 Municipal Fiscal Responsiveness Assessments were conducted in 8 Municipalities
32 32 0 None
% of audit findings tracked in respect of AFS from the audit action plans of municipalities
N/A 100% (327/327) of Audit recommendations were tracked at local municipalities
100% 100% (299/299) 0 None
Strategy to Overcome Areas of Under Performance There are no areas of underperformance.
Changes to Planned Targets There were no changes to planned targets.
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4.6 PROGRAMME 6: GAUTENG AUDIT SERVICES
PurposeTo enhance transparency, good governance and a clean government through strengthening the internal control and regulatory environment in the province and to render audit services in the GPG.
Sub-Programmes• Risk and Compliance Audit Services• Performance and Computer Audit Services• Programme Support
Strategic ObjectivesTo support all departments, entities and municipalities to achieve unqualified audits.
Key AchievementsThe department implemented 92% of the internal audit plans, exceeding the annual target of 90%. The department continued to support GPG departments to ensure implementation of internal audit recommendations. In strengthening internal controls and regulatory environment in the province, the department followed up the implementation of actions to address AG significant findings causing qualifications.
Performance Indicators and Targets
Strategic Objectives Strategic Objectives Actual Achievement
2016/17Actual Achievement
2017/18Planned Target
2018/19Actual Achievement
2018/19Deviation from
Planned Target to Actual Achievement
2018/19
Comments on Deviations
To support all departments, entities and municipalities to achieve unqualified audits
99% Implementation of the audit plan (287/290)
All Departments and Public Entities obtained unqualified audit outcomes
All departments and public entities obtaining unqualified audit outcomes
All Departments and Public Entities obtained unqualified audit outcomes
0 None
Performance IndicatorsGAUTENG AUDIT SERVICES
Performance Indicator Actual Achievement2016/17
Actual Achievement2017/18
Planned Target2018/19
Actual Achievement2018/19
Deviation from Planned Target to
Actual Achievement 2018/19
Comments on Deviations
% implementation of risk based Internal Audit Plans approved by the audit committee
96% (157/164) of internal audit plans were implemented
93% (207/227) implementation of internal audit plans
90% 92% (248/271) 2% above target Consistent follow up and escalations to HODs has resulted in Audits being issued on time
% of internal audit recommendations tracked as implemented by departments and trading entities
92% (322/352) of internal audit recommendations were implemented by depts. and entities before the next audit cycle
100% (1354/1354) of internal audit recommendations were tracked by departments and entities
90% 100% (1223/1223) 10% above target Encouraging clients and having monthly meetings assisted clients
% of AG significant findings (Findings causing audit qualifications) followed up audits by internal Audits
100% of AG significant findings (Findings causing audit qualification) were followed up audits by Internal Audit
100% (18/18) of AG significant findings (findings causing qualifications) were followed up by internal audit
100% 100% (17/17) 0 None
Strategy to Overcome Areas of Under Performance There are no areas of underperformance.Changes to Planned TargetsThere were no changes to planned targets.
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5. Linking Performance with Budgets
5.1 Programme Expenditure
2018/2019 2017/2018
Programme Name Final Appropriation Actual Expenditure(Over)/Under Expenditure
Final Appropriation Actual Expenditure(Over)/Under Expenditure
R’000 R’000 R’000 R’000 R’000 R’000
Administration 143 769 132 194 11 575 135 576 132 861 2 715
Sustainable Resource Management
148 464 145 130 3 334 141 832 140 558 1 274
Financial Governance 162 823 157 529 5 294 140 040 135 622 13 418
Provincial Supply Chain Management 111 953 107 996 3 957 103 532 96 648 6 884
Municipal Financial Governance 45 368 44 955 413 44 896 43 471 1 425
Gauteng Audit Services 93 286 88 529 4 757 80 031 76 799 3 232
Total 705 663 676 333 29 330 654 907 625 959 28 948
The department’s expenditure was recorded at R676 million or 96% of the final appropriation and an under-spending was recorded at R29 million or 4% of the final appropriation. This was in the main as a result of vacancies which stood around 7% by year end. Furthermore, desktops computers were procured but were still to be delivered by end of March 2019.
5.2 Transfer Payments to all Organisations Other Than Public Entities
The department continued in 2018/19 to implement its delivery model of utilising its agency, GIFA to facilitate off-budget funding of infrastructure projects and also partnered with an NPI to facilitate supplier development.
Transfer to Departmental Agency and Accounts
Name of Transferee Type of Organisation Purpose for which the funds were used
Did the dept. comply with s38 (1) (j) of the
PFMA
Amount Transferred (R’000)
Amount Spent by the entity (R’000)
Reasons for the funds unspent by the
entity
Gauteng Infrastructure Funding Agency
Government component
Operational requirements of entity
Yes 58 544 56 091 There were delays in approval of some projects
Transfer to Non-Profit Institution
Name of Transferee Type of Organisation Purpose for which the funds were used
Did the dept. comply with s38 (1) (j) of the
PFMA
Amount Transferred (R’000)
Amount Spent by the entity (R’000)
Reasons for the funds unspent by the
entity
South African Supplier Diversity Council
Non-Profit Institution Supplier Development and Incubation
Yes 10 000 N/A N/A
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6. Outlook for the Coming Financial Year (2019/20)
The Gauteng province has been operating in a tight fiscal space since the 2014 period, when the 5th administration of government took office. The slow economic growth has resulted in increased demands on provincial fiscus to mitigate poverty and unemployment and promote growth. The GPG has introduced numerous programmes and initiatives to realise the TMR agenda that aims to accelerate, radically transform, modernise and re-industrialise the delivery of services to the Gauteng citizenry.
Some of the key programmes are the Tshepo 1 million programme that seeks to address the issue of youth unemployment, the Township Economy Revitalisation (TER) strategy that aims to support and develop township-based businesses, the Open Tender Process that intends to address the issue of fraud and corruption and improve transparency in government procurement processes and the introduction of various Business Intelligence tools that are designed to improve operational efficiencies in GPG institutions. The realisation of the goals espoused in the TMR programme is a continuous effort and the department has set the following key priorities for the ensuing financial year.
PILLAR 1: RADICAL ECONOMIC TRANSFORMATION
To Create an Enabling Environment for Township-Based SMMEs to do Business with GPG
The key focus area for the Township Economy Revitalisation strategy is the revitalising and mainstreaming of the township economy and the development of SMME’s and cooperatives. This is done through active industrial incentives and transformative procurement policy that promotes the growth of township-based manufacturing and services. This can be achieved through collaborative efforts by strengthening partnerships with the private sector, labour and civil society to provide further developmental opportunities to enhance the capacity and capability of suppliers to benefit from public procurement spend.
To Support the Development and Implementation of the Township Revitalisation Strategy that Encourages the Increase in Township Spend
The realisation of TER strategy necessitates for all stakeholders, provincial departments, public entities and local government to put concerted efforts in supporting township-based businesses. In supporting the TER strategy in the province, the GPT will continue with its efforts to increase spending in townships.
Inclusion and sustainability of emerging enterprises are key elements in the acceleration of economic transformation. This is achievable through empowerment which entails a combination of supplier development, access to finance and markets in the mainstream economy. Supplier development initiatives and programmes which have been established through partnerships with the private sector to ensure that township suppliers receive the net benefit due to them will continue in the ensuing financial year. Monitoring of compliance with the newly adopted Preferential Procurement Regulations of 2017 (PPR) will be intensified to ensure compliance to sub-contracting of 30% of all government tenders that are over R30 million to SMMEs.
Payment of invoices for services rendered is an important element in ensuring the sustainability of SMMEs and cooperatives. The Gauteng Provincial Treasury department will put measures and processes in place to ensure timeous payment of invoices within 30 days upon receipt of final and correct invoices.
PILLAR 4: TRANSFORMATION OF STATE AND GOVERNANCE
Promoting Better Planning and Budgeting Synergy Across All Spheres of Government
Synergy in the three spheres of government (national, provincial and local) promotes better planning and budgeting alignment, resulting in an integrated and credible planning framework and in ensuring that provincial priorities are strategically and adequately resourced from the limited fiscus and that service delivery for the Gauteng citizenry is accelerated and economies of scale are realised.
The GPT will conduct departmental budget reviews and host various bilateral engagements with departments through various platforms like the Budget Lekgotla, Budget Fora, Premier’s Budget Committee and Inter-Governmental Relations structures to
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promote economic development and ensure alignment of plans and budget to the TMR programme and other key policies and strategies adopted for implementation in the Gauteng City Region.
Ensuring Balanced Budgeting and Sustainable Funding for Legislative Mandates and Strategic Priorities of the Province
The implementation of the GPG own revenue strategy contributes towards own revenue optimization generated from provincial sources and put measures in place to ensure that own revenue targets are realised. Own revenue augments the equitable share and assists the province in ensuring that key priorities such as education, healthcare and social welfare are funded and furthermore citizens receive quality services. Surplus funds will be invested in line with the adopted policy that is more aligned to capital preservation
The department will make strides in the enhancement of value for money through strengthening institutional capacity and capability through the Infrastructure Development Management System project.
Ensuring that Approved Financial Resources are Spent Efficiently, Effectively and Economically Across the Province
The GPT will monitor the budget of non-core budgetary items in line with budget allocations and avoid over-commitments. Additionally, personnel expenditure will be contained below 60 percent against the total budget.
Measures will be put in place to speed up the delivery of new infrastructure and focus will be on the maintenance of existing infrastructure across the Gauteng City Region. Similarly, stringent mechanisms will be employed in the monitoring of expenditure on infrastructure allocation and conditional grants and collaborative efforts be put in place to upscale performance and institutionalise IDMS in GPG institutions.
In minimizing liquidity exposure in the province, cash-outflows to departments will be kept within the provincial revenue streams and cash disbursements to departments will be monitored to ensure that fund requests do not exceed the appropriated funds and that prudent cash management practices are being adhered to. The municipal financial hands on support programme will be enhanced to assist delegated municipalities with stabilizing their finances.
Transfers to delegated municipalities will be made as gazetted and measures will be put in place to track and monitor spending thereof.
Supporting All Departments, Entities and Municipalities to Achieve Unqualified Audits
The GPG has continued to obtain improved audit outcomes. The efforts and interventions by the GPT in supporting departments, municipalities, and entities to manage their finances in accordance with laws and regulations will continue to ensure sustainability and improvement of the audit outcomes and maintaining sound financial and cash management practices.
Targeted GRAP training will be provided to delegated municipalities, focusing on capacity building of governance structures, technical assistance in addressing audit issues, guidance on pre-audit matters and audit process and support on quality assurance of financial information.
The department aims to conduct value-adding audit services that will contribute to the overall improvement of audit outcomes for GPG departments and trading entities. Internal control assessments which are based on internal audit reports, implementation of the GAS and AG findings, risk management reports and risk profile of the department, will be conducted regularly to proactively highlight and address areas of concern and to promote improvements in the internal control environment.
Reducing Fraud and Corruption and Promoting Clean Government Across the ProvinceThe GPT is committed to upholding ethical leadership and integrity by intensifying the fight against corruption, collusion and maladministration. The five key pillars of Deterrence; Prevention; Detection; Investigation; Sanctions and Recovery as espoused in the Forensic Services strategy are at the centre of fighting and eradicating fraud and corruption in GPG. The department will implement efficiencies on management and processing of forensic cases and conduct fraud detection reviews on high-risk, high-value projects. Key focus area will be on improving turnaround times for completion of forensic investigations and increased monitoring to
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ensure forensic recommendations are implemented by departments and entities. The results of the detection reviews will assist in the identification of risk areas and development of control measures to tighten processes and systems to minimize fraud and corruption.
Full implementation of the Open Tender system in the GPG will assist in restoring public confidence in government procurement system. The introduction of legislation on the open tender system is key in institutionalising open tender processes in the procurement of goods and services in this province.
Ensuring that Statutory Obligations are Met and that Decision Makers Facilitate Appropriate InterventionsCompliance with regulatory and legislated reporting requirements is crucial in fulfilment of the GPT’s mandate. This is achieved by ensuring timeous submissions of credible reports to various key stakeholders, compliance with Management of Performance Assessment Tool (MPAT) standards, enforcement of cost containment policy compliance in GPG, fulfilment of the department’s statutory and regulatory reporting obligations and payment of invoices to suppliers within the prescribed timeframe of 30 days upon receipt of correct invoice.
The GPT endeavours to promote a public service culture that treats citizens with dignity and serves them with compassion and professionalism.
PILLAR 5: MODERNISATION OF THE PUBLIC SERVICE
Innovation, modernisation and technology enable service delivery improvement through an increase in productivity and enhancement of operational efficiencies. In this regard, the GPT will automate the preparation process of AFS and legislated reporting. The department will also develop and implement automated inventory management system in identified departments, explore and research on the automation of the procurement process for both requests for quotations and proposals. As part of the drive to modernise the public service, efforts will be put ondeveloping business intelligent systems to improve data analytics, thus improving decision making processes. This will promote an innovative culture of working smarter, driving functional excellence and improving service delivery in GPG.
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PART C: GOVERNANCE
1. Introduction 42
2. Risk Management 42
3. Fraud And Corruption 42
4. Minimising Conflict Of Interest 42
5. Code Of Conduct 43
6. Health, Safety And Environmental Issues 43
7. Portfolio Committees 43
8. Prior Modifications To Audit Reports 43
9. Internal Control Unit 43
10. Audit Committee 44
11. Report Of The Audit Committee - Cluster 02 45
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1. Introduction
Internal Audit and Risk Management directorates are established in the department as governance structures with different mandates. Chapter 13, Section 215(1) of the Constitution states that, “national, provincial, and municipal budgets and budgetary processes must promote transparency, accountability, and the effective financial management of the economy, debt and Public Sector”. These principles are embedded in the responsibilities of both, the Internal Audit and Risk Management functions, to evaluate controls, risk management and governance processes.
The Audit Committee and the Risk and Ethics Management Committee are also established to provide assurance on compliance and governance issues as oversight structures. The Department has a functional governance system, with the highest decision-making authority being the Executive Management Team (EMT) that oversees the effective and efficient management of the Department. The EMT meets on a monthly basis and its members include the Member of the Executive Council (MEC), Head of Department (HOD), Deputy Directors General, all Chief Directors, the Head of Communication, Chief Risk Officer and Director in the Office of the HOD.
2. Risk Management
Departmental Risk Management Processes are guided by its Risk Management Policies and Strategy; these are reviewed on a regular basis to ensure alignment to legislation. In line with the Treasury Regulation 3 18; the department identifies emerging risks on a regular basis; these are assessed and managed on an ongoing basis.
The Accounting Officer has appointed a Risk and Ethics Management Committee (the Committee) to assist her in discharging responsibilities pertaining to risk management and related controls. The Committee is chaired by an independent chairperson; and its members are senior officials employed by the department; formally appointed by the AO. The Committee met four times during the financial year under review and provided oversight to the risk and ethics management processes. On a quarterly basis, the Chair of the REMC reports formally to the AO and the Audit Committee, escalating matters needing intervention where applicable.
3. Fraud and Corruption The three-year Fraud Prevention Plan for 2017 - 2020 financial years including the Fraud Policy and Response Plan were updated during the year under review.
Departmental officials have been sensitised on procedures to be followed when reporting fraud and corruption. The department has a whistleblowing policy in place. Anti-fraud and corruption awareness campaigns were conducted and placards with anti-fraud and corruption messages visibly posted in the department.
4. Minimising Conflict of Interest
Chapter 3 of the Public Service Regulations requires that all Senior Management Service (SMS) members must declare their financial interests and submit these by the 30th of April of each year and that the Executive Authority should submit these to the Public Service Commission by the 30th of May. The GPT was in full compliance with both legislated deadlines for the year under review.
The PSR 2016 extended the requirement for annual financial disclosures interest to include middle management and officials on levels 1-10 employed within Supply Chain Management and Financial Management ‘other designated categories. The GPT was successful in providing training and support to the officials who for the first time were required to disclose their financial interest. Group support sessions were conducted and where required one on one sessions were held with affected officials.
The Accounting Officer has in line with the directive on PSR 2016 issued by the Minister of Public Administration in January 2017; submitted a report to the DPSA on the outcome on financial disclosures by other designated categories.
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5. Code of Conduct
The revision of Public Service Regulations in 2016 has resulted in changes to the Public-Sector Code of Conduct. The department enrolled departmental officials with the National School of Governance for an Ethics Online Course dealing with the Code of Conduct through their eLearning programme.
6. Health, Safety and Environmental Issues
During the second quarter, the department was evacuated as part of a provincial decision to address and mitigate OHS weaknesses that were identified by a GDID audit of GPG buildings. The critical processes of the department were located at the designated disaster recovery site for the duration of the evacuation, other functions were located at other GPG departments. The identified weaknesses were addressed during the evacuation and staff were brought back.
OHS Awareness training was conducted and 769 employees (95% of staff) were reached. The department trained and appointed 19 First Aiders and 5 Fire Marshals. Regular OHS meetings are held and the training and appointment of SHE reps is underway. Progress on the implementation of the OHS programme is discussed, monitored and reported monthly at Executive Meetings.
7. Portfolio Committees
The Department engaged with the Finance Portfolio Committee on the following matters:
• 2018/19 Provincial Adjustment Bill• Division of Revenue Amendment Bill 2018• 2018/19 Quarterly Reports• 2017/18 Annual Report• 2018/19 Quarterly State of Finances Reports• 2019/20 Departmental Vote 14 Budget• 2019/20 Provincial Appropriation Bill
Any issues raised by the Committee were addressed through Legislature processes.
8. Prior Modifications to Audit Reports The department obtained a clean audit outcome, there were no prior modifications to audit reports.
9. Internal Control Unit
The implementation of effective internal control helps in the achievement of the objectives of the Department. Effective controls also ensure sustainable and improved performance, in that potential risks are identified and mitigated to reduce the impact thereof on the performance of the organisation.
On a quarterly basis, the department conducts self- assessment of key controls wherein control deficiencies are identified and mitigating actions put in place to strengthen the control. Internal Audit also conducts independent reviews, following up on significant audit findings raised by both internal and external audit thereby providing assurance to the Accounting Officer and oversight that controls are being implemented.
The department on an ongoing basis monitors implementation of audit recommendations. Through the incident reporting mechanism, it is also able to identify high risk areas requiring strengthening of controls.
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10. Audit Committee
The table below discloses the relevant information on the audit committee members.
Name Qualifications Internal or External member
Date appointed Date resigned No. of meetings attended
Japie Du Plessis National Diploma: State Accounting and Finance
External 01 October 2013 Current 05
Michael Sass Chartered Accountant (SA)B. Com. AccountingB. Com. HonoursB. Compt. HonoursCertified Internal Auditor (CIA)M. Com. Forensic
External 01 October 2014 Current 04
Makhadi Myeni Master in Business Administration(MBA)Btech Internal AuditingNational Diploma Internal Auditing
External 01 September 2018 Current 04
Catherine Motsisi Bachelor of Accounting ScienceAdvanced Business Management Programme
External 01 September 2016 Contract expired (31 August 2018)
0
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11. Report of the Audit Committee
Gauteng Provincial Treasury
We are pleased to present our report for the financial year ended 31 March 2019.
Audit Committee and attendance
The Audit Committee consists of the external Members listed hereunder and is required to meet a minimum of at least two times per annum as per the provisions of the Public Finance Management Act, 1999 (Act Number 1 of 1999) (PFMA). In terms of the approved Terms of Reference (GPG Audit Committee Charter), five meetings were held during the current year, i.e. three meetings to consider the Quarterly Performance Reporting (financial and non-financial) and two meetings to review and discuss the Annual Financial Statements and the Auditor-General of South Africa’s (AGSA) Audit and Management Reports.
Non-Executive membersName of member Number of meetings attended
Mr. Japie du Plessis (Chairperson) 05
Mr. Michael Sass 04
Ms. Makhadzi Miyen 04
Ms. Catherine Motsisi 0 (Resigned 31 August 2018)
Executive members
In terms of the GPG Audit Committee Charter, officials listed hereunder are obliged to attend meetings of the Audit Committee:
Compulsory attendees Number of meetings attended
Ms. Nomfundo C. Tshabalala (Accounting Officer) 04
Mr. Phakamisile Sikitshana (Chief Financial Officer) 05
Ms. Nokukhanya Zungu (Chief Risk Officer) 03 (Resigned in May 2019)
Mr. Luthendo Makhadi (Acting Chief Audit Executive) 04
Mr. Kweyama Velile (Chief Audit Executive) 01
The Audit Committee noted that the Accounting Officer did not attend one scheduled Audit Committee meeting but was duly represented. The Audit Committee is therefore satisfied that the Department adhered to the provisions of the GPG Audit Committee Charter.
The members of the Audit Committee met with the Senior Management of the Department, Internal Audit and the AGSA, individually and collectively to address risks and challenges facing the Department. A number of in-committee meetings were held to address control weaknesses and deviations within the Department.
Audit Committee responsibility
The Audit Committee reports that it has complied with its responsibilities arising from section 38(1)(a) of the PFMA and Treasury Regulation 3.1.13. The Audit Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with this Charter and has discharged all its responsibilities as contained therein.
The effectiveness of internal control and Information and Communication Technology (ICT) Governance
The Audit Committee has observed that the overall control environment of the Department was stagnant during the year under review. The overall opinion of Internal Audit on the internal control design at the Department is adequate but ineffective.
The Audit Committee also reviewed the progress with respect to the ICT Governance in line with the ICT Framework issued by the Department of Public Services and Administration. IT governance remained unchanged with an adequate control environment. IT system controls regressed in terms of the effectiveness of security patch management together with coordination and management of transversal systems’ user access rights monitoring.
The Department did implement the recommendations made by the Audit Committee.
Internal Audit
Internal Audit was effective during the financial year. The Audit Committee is satisfied that the Internal Audit Plan represents a clear alignment with the key risks, has adequate information systems coverage, and a good balance across the different categories of audits, i.e. risk based, standard/transversal, performance and computer audits. From a resource point of view, Internal Audit needs to
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be equipped to provide assurance on a greater number of risks.
The Audit Committee has noted considerable improvement in the communication between the Executive Management, the AGSA and the Internal Audit Function, which has strengthened the Corporate Governance initiatives within the Department. Combined assurance needs to be implemented within the GPG.
Risk Management
Progress on the departmental risk management was reported to the Audit Committee on a quarterly basis. The Audit Committee is satisfied that the actual management of risk is receiving attention. Management should take full responsibility for the entire Enterprise Risk Management process and continue to support the Chief Risk Officer to even further enhance the performance of the Department.
Forensic Investigations
Four forensic investigations were requested for the Department during the financial year under review. One investigation was finalised and three are in progress.
The quality of quarterly reports submitted in terms of the PFMA and the Division of Revenue Act
The Audit Committee is satisfied with the content and quality of the financial and non-financial quarterly reports prepared and submitted by the Accounting Officer of the Department during the year under review and confirms that the reports were in compliance with the statutory reporting framework.
Evaluation of the Annual Financial Statements
The Audit Committee has:
• Reviewed and discussed the audited Annual Financial Statements to be included in the Annual Report with the AGSA and the Accounting Officer;
• Reviewed the Audit Report of the AGSA;• Reviewed the AGSA’s Management Report and Management’s response thereto; • Reviewed the Department’s compliance with legal and regulatory provisions; and • Reviewed significant adjustments resulting from the audit.
The Audit Committee concurs with and accepts the AGSA’s conclusions on the Annual Financial Statements and is of the opinion that the audited Annual Financial Statements be accepted and read together with the report of the AGSA.
One-on-One meetings with the Accounting Officer
The Audit Committee has met with the Accounting Officer for the Department to address unresolved issues.
One-on-One meetings with the Executive Authority
The Audit Committee has met with the Executive Authority for the Department to apprise the MEC on the performance of the Department.
Auditor-General of South Africa
The Audit Committee has met with the AGSA to ensure that there are no unresolved issues.
_____________________________Mr. Japie du Plessis
Chairperson of the Audit CommitteeDate: 31 July 2019
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PART D: HUMAN RESOURCES
1. Introduction 50
2. Overview Of Human Resources 50
3. Human Resource Oversight Statistics 50
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1. Introduction
The information contained in this part of the annual report has been prescribed by the Minister for the Public Service and Administration for all departments in the public service.
2. Overview of Human Resources
The Status of Human Resources in the DepartmentAs at 31 March 2019, the total number of posts was 810 of which 752 were filled and 58 vacant. The overall vacancy rate for the Department was 7.16%. The number of employees with disability was 18. This represents 2.4% of the GPT staff complement.
Workforce Planning and Key Strategies to Attract and Recruit a Skilled and Capable WorkforceThe HR Plan for 2018/19 was developed and approved in June 2017. All vacant positions in the Department were advertised to encourage open competition. Headhunting was utilised in instances where suitable candidates could not be attracted through the normal recruitment process.
The Department provided training opportunities to staff members to obtain new qualifications and improve their skills and knowledge. An internship programme was established to provide young graduates with opportunities to gain knowledge and experience in the workplace, in order to be able to compete for jobs in the labour market.
Employee Performance ManagementA total of 769 out of 771 employee performance agreements were captured, translating to 99.74% concluded performance agreements in line with prescripts. A total of 759 out of 761 mid-year reviews were finalised on time. Performance assessments for the 2017/18 cycle were finalised and rewards related to this process were paid during the 2018/19 financial year.
3. Human Resource Oversight Statistics
3.1. Personnel Related Expenditure
3.1.1 Personnel Expenditure by Programme
Programme Total Expenditure (R’000)
Personnel Expenditure (R’000)
Training Expenditure (R’000)
Professional and Special Services
Expenditure (R’000)
Personnel expenditure as a % of total expenditure
Average personnel cost per employee (R’000)
Administration 132 194 90 807 1 784 0 68.69 396
Sustainable Fiscal Resource Management
145 130 68 155 81 0 46.96 725
Financial Governance 157 529 119 364 307 0 75.77 429
Provincial Supply Chain Management
107 996 76 465 472 0 70.80 554
Municipal Financial Governance
44 955 42 250 781 0 93.98 660
Gauteng Audit Services 88 529 77 290 693 0 87.30 634
Total 676 333 474 331 4 118 0 70.13 513
* Includes employees as of 31 March 2019, ex-employees and interns.
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3.1.2 Personnel Costs by Salary Band
Salary Band Personnel expenditure (R’000) % of total personnel cost
No. of employees
Average personnel cost per employee (R’000)
Contract (levels 13-16) 33 496 7.06 33 1 015
Contract (levels 3-5) 0 0 0 0
Contract (levels 6-8) 249 0.05 1 249
Contract (levels 9-12) 2 478 0.52 3 826
Contract other 5 400 1.14 103 52
Lower skilled (Levels 1-2) 0 0 0 0
Skilled (levels 3-5) 4 417 0.93 22 201
Highly skilled production (levels 6-8) 108 889 22.96 294 370
Highly skilled supervision (levels 9-12) 254 188 53.59 399 637
Periodical Remuneration 6 934 1.46 23 301
Senior and Top management(levels 13-16) 58 280 12.29 47 1 240
Total 474 331 100 925 513
* Includes employees as of 31 March 2019, ex-employees and interns.
3.1.3 Salaries, Overtime, Home Owners’ Allowance and Medical Aid by Programme
Programme
Salaries Overtime Home Owners’ Allowance Medical Aid
Amount(R’000)
Salaries as % of Personnel
CostsAmount(R’000)
Overtime as % of Personnel
CostsAmount(R’000)
HOA as % of Personnel
CostAmount (R’000)
Medical Aid as % of Personnel
Costs
Administration 64 413 92.73 143 0.21 1 982 2.85 2 928 4.22
Sustainable Fiscal Resource Management
46 809 94.94 26 0.05 1 076 2.18 1 393 2.83
Financial Governance 86 502 92.43 0 0.00 2 829 3.02 4 253 4.54
Provincial Supply Chain Management 55 265 91.41 21 0.03 1 978 3.27 3 194 5.28
Municipal Financial Governance 25 926 94.93 0 0 869 3.18 515 1.89
Gauteng Audit Services 55 094 94.28 0 0 1 314 2.25 2 026 3.47
Total 334 009 93.15 190 0.05 10 048 2.80 14 309 3.99
3.1.4 Salaries, Overtime, Home Owners’ Allowance and Medical Aid by Salary Band
Salary bands
Salaries Overtime Home Owners’ Allowance Medical Aid
Amount(R’000)
Salaries as % of Personnel
Cost
Overtime(R’000)
Overtime as % of Personnel
Cost
Amount (R’000)
HOA as % of Personnel
Cost
Amount(R’000)
Medical Aid as % of Personnel
Costs
Skilled (levels 3-5) 2 918 81.54 9 0.24 280 7.83 372 10.39
Highly skilled production (levels 6-8) 78 782 88.13 95 0.11 3 821 4.27 6 696 7.49
Highly skilled supervision(levels 9-12)
186 511 94.42 82 0.04 4 486 2.27 6 462 3.27
Senior management (level 13-16) 36 406 96.43 0 0 874 2.31 475 1.26
Contract (levels 3-5) 0 0 0 0 0 0 0 0
Contract (levels 6-8) 182 100.00 0 0 0 0 0 0
Contract (levels 9-12) 1 596 97.15 4 0.26 0 0 43 2.59
Contract (levels 13-16) 22 214 96.32 0 0 587 2.54 262 1.13
Contract other 5 400 100 0 0 0 0 0 0
Periodical Remunerations 0 0 0 0 0 0 0 0
Total 334 009 93.15 190 0.05 10 048 2.80 14 309 3.99
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3.2 Employment and Vacancies
3.2.1 Employment and Vacancies by Programme
Programme Number of Posts on approved establishment Number of Posts Filled Vacancy Rate Number of employees
additional to the Establishment
Administration,Permanent 165 155 6.06 1
Financial Governance,Permanent 232 211 9.05 0
Gauteng Audit Services.Permanent 128 118 7.81 0
Municipal Financial Governance, Permanent 54 49 9.25 0
Provincial Supply Chain Management, Permanent 139 131 5.75 0
Sustainable Fiscal Resource Management, Permanent 92 88 4.34 0
Total 810 752 7.16 1
3.2.2. Employment and Vacancies by Salary Band (End of 2018/ 2019)
Salary Band Number of Posts on approved establishment Number of Posts Filled Vacancy Rate
(Including frozen posts)Number of employees
additional to the Establishment
Lower Skilled (Levels 1-2) 0 0 0 0
Skilled (Levels 3-5) 21 20 4.76 0
Highly skilled production (Levels 6-8) 299 284 5.02 0
Highly skilled supervision (Levels 9-12) 403 371 7.94 1
Senior management (Levels 13-16) 53 43 18.87 0
Other, Permanent 0 0 0 0
Contract (Levels 3-5) 0 0 0 0
Contract (Levels 6-8) 1 1 0 0
Contract (Levels 9-12), Permanent 3 3 0 0
Contract (Levels 13-16), Permanent 27 27 0 0
Senior Managers (Out of adjustment) 3 3 0 0
Total 810 752 7.16 1
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3.2.3 Employment and Vacancies by Critical Occupations (End of 2018/2019)
Critical Occupations Number of Posts on approved Establishment Number of Posts Filled Vacancy Rate
Number of employees additional to the Establishment
Administrative related, Permanent 117 111 5.13 0
Archivists, curators and related professionals, Permanent 7 7 0.00 0
Client information clerks (switchboard, reception, information clerks), Permanent 3 2 33.33 0
Communication and information related, Permanent 3 3 0.00 0
Computer system designers and analysts, Permanent 6 7 0.00 0
Economists, Permanent 7 6 14.29 0
Engineers and related professionals, Permanent 0 0 0.00 0
Finance and economics related professionals, Permanent 182 161 11.54 0
Financial and related professionals, Permanent 70 66 5.71 0
Financial clerks and credit controllers, Permanent 66 64 3.03 0
Food services aids and waiters, Permanent 6 6 0.00 0
Head of Department/Chief Executive Officer, Permanent 1 1 0.00 1
Human Resources & organisational development & related professionals, Permanent 51 48 5.88 0
Human Resources clerks, Permanent 42 35 16.67 0
Human Resources related, Permanent 10 9 10.00 0
Language practitioners, interpreters & other communicators, Permanent 1 1 0 0
Legal related, Permanent 1 1 0 0
Library mail and related clerks, Permanent 3 2 33.33 0
Logistical support personnel, Permanent 27 28 0.00 0
Material-recording and transport clerks, Permanent 09 8 11.11 0
Mathematicians and related professionals, Permanent 3 4 0.00 0
Messengers, porters and deliverers, Permanent 6 6 0.00 0
Other administrative & related clerks and organisers, Permanent 13 14 0.00 0
Other information technology personnel, Permanent 3 2 33.33 0
Other occupations, Permanent 5 2 60.00 0
Risk management and security services, Permanent 47 44 6.38 0
Secretaries & other keyboard operating clerks, Permanent 42 42 0.00 0
Security officers, Permanent 0 0 0.00 0
Senior managers, Permanent 76 69 9.21 0
SMS Out of adjustment 3 3 0.00
Total 810 752 7.16 1
3.3 Filling of SMS Posts
3.3.1 SMS Post Information (End of 2018/2019)
SMS Level Total number of funded SMS posts
Total number of SMS posts filled % of SMS posts filled Total number of SMS
posts vacant % of SMS posts vacant
Director-General/ Head of Department 1 1 100 0 0
Salary Level 16 0 0 0 0 0
Salary Level 15 4 3 75 1 25
Salary Level 14 17 17 100 0 0
Salary Level 13 58 49 84.48 9 15.52
Total 80 70 87.5 10 12.5
*The totals excludes SMS employees appointed out of adjustment.
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3.3.2 SMS Post Information as at 30 September 2018
SMS Level Total number of funded SMS posts
Total number of SMS posts filled % of SMS posts filled Total number of SMS
posts vacant % of SMS posts vacant
Director-General/ Head of Department 1 1 100 0 0
Salary Level 16 0 0 0 0 0
Salary Level 15 4 3 75 1 25
Salary Level 14 17 17 100 0 0
Salary Level 13 58 49 84.48 9 15.52
Total 80 70 87.5 10 12.5
3.3.3 Advertising and Filling of SMS Posts (End of 2018/2019)
SMS Level
Advertising Filling of Posts
Number of vacancies per level advertised in 6 months
of becoming vacant
Number of vacancies per level filled in 6 months of becoming vacant
Number of vacancies per level not filled in 6 months but filled in 12 months
Director-General/ Head of Department 0 0 0
Salary Level 16 0 0 0
Salary Level 15 0 0 0
Salary Level 14 2 1 0Salary Level 13 3 0 0Total 5 1 0
3.3.4 Reasons For Not Having Complied with the Filling of Funded Vacant SMS Posts- Advertised Within 6 Months and Filled Within 12 Months After Becoming Vacant (End of 2018/2019)
Reasons for vacancies not advertised within six months
N/A
Reasons for vacancies not filled within twelve months
Inability to match private sector salaries
Interviewed candidates found not suitable, which led to the department implementing other recruitment methods eg headhunting and referrals.
Candidates not accepting offers
3.3.5 Disciplinary Steps Taken For Not Complying with the Prescribed Timeframes for Filling SMS Posts Within 12 Months (End of 2018/2019)
Reasons for vacancies not advertised within six months
N/A
Reasons for vacancies not filled within six months
No disciplinary action was taken as reasons for not filling the positions within the stipulated timeframes was beyond the control of the department.
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3.4 Job Evaluation
3.4.1 Job Evaluation by Salary band
Salary Band
Number of Posts on approved
establishment
Number of jobs evaluated
% of Posts evaluated per salary band
Posts upgraded Posts downgraded
Number% of posts evaluated
Number% of posts
downgraded
Lower Skilled (Levels 1-2) 7 0 0 0 0 0 0
Skilled (Levels 1-5) 21 0 0 0 0 0 0
Highly skilled production (Levels 6-8)
299 33 11.04 29 87.88 0 0
Highly skilled supervision (Levels 9-12)
403 0 0 0 0 0 0
Senior Management Service Band A
53 0 0 0 0 0 0
Senior Management Service Band B
22 0 0 0 0 0 0
Senior Management Service Band C
3 0 0 0 0 0 0
Senior Management Service Band D
2 0 0 0 0 0 0
Total 810 33 4.07 29 87.88 0 0
3.4.2 Profile of Employees Whose Positions Were Upgraded Due to Their Posts Being UpgradedGender African Asian Coloured White Total
Female 14 2 5 0 21
Male 6 1 0 0 7
Total 20 3 5 0 28
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3.4.3 Employees with Salary Levels Higher than those Determined by Job Evaluation by OccupationOccupation Number of employees Job evaluation level Remuneration level Reason for deviation
Lower Skilled (Level 2) 7 2 4Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Skilled (Level 4) 2 4 6Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Skilled (Level 4) 1 4 7Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Skilled (Level 5) 1 5 7Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Highly skilled production (Level 6) 30 6 7
Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Highly skilled production (Level 6) 4 6 8
Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Highly skilled production (Level 7) 9 7 8
Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Highly skilled production (Level 7) 1 7 9
Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Highly skilled production (Level 7) 1 7 13
Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Highly skilled production (Level 8) 1 8 9
Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Highly skilled supervision (Level 9) 30 9 10
Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Highly skilled supervision (Level 9) 2 9 14
Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Highly skilled supervision (Level 9) 1 9 11
Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Highly skilled supervision (Level 11) 14 11 12
Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Highly skilled supervision (Level 11) 1 11 10
Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Highly skilled supervision (Level 11) 1 11 13
Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Highly skilled supervision (Level 12) 1 12 11 Coordination
Senior Management (Level 13) 3 13 14
Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Senior Management (Level 14) 1 14 15
Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.2001, Part V.C3.
Senior Management (Level 15) 2 15 16
Setting of higher salary in terms of the Public Service Regulations, 2001, Part V.C5 and C6.
Total 113
Total number of employees whose salaries exceeded the level determined by job evaluation
113
Percentage of total employed 15.02
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3.4.4 Profile of Employees Who Have Salary Levels Higher than those Determined by Job EvaluationGender African Asian Coloured White Total
Female 50 1 2 2 55
Male 44 6 2 6 58
Total 94 7 4 8 113
Employees with a disability 4 0 1 0 5
3.5 Employment Changes
3.5.1 Annual Turnover Rates by Salary Band
Salary BandNumber of employees at
Beginning of Period (1 April 2018)
Appointments and transfers into the department
Terminations and transfers out of the department Turnover Rate
Lower skilled (Levels 1-2) 0 0 0 0
Skilled (Levels 3-5) 20 2 2 10
Highly skilled production (Levels 6-8) 277 23 14 5.05
Highly skilled supervision (Levels 9-12) 375 14 19 5.07
Senior Management Service Band A 31 0 1 3.23
Senior Management Service Band B 10 0 0 0
Senior Management Service Band C 2 0 0 0
Senior Management Service Band D 4 0 0 0
Contract Band A, Permanent 15 3 1 6.67Contract Band B, Permanent 6 2 1 16.67
Contract Band C, Permanent 3 0 2 66.67
Contract (Levels 3-5) 0 0 0 0Contract (Levels 6-8) 0 0 0 0Contract (Levels 9-12) 3 1 0 0SMS Out of Adjustment 4 0 1 25Total 750 45 41 5.47
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3.5.2 Annual Turnover Rates by Critical Occupation
Critical OccupationNumber of
employees at beginning of period
(April 2018)
Appointments and transfers into the
department
Terminations and transfers out of the
departmentTurnover
Rate
Administrative related, Permanent 117 1 6 5.13
Archivists, curators and related professionals, Permanent 7 0 0 0
Client information clerks (switchboard, reception, information clerks), Permanent 2 0 0 0
Communication and information related, Permanent 3 0 0 0
Computer system designers and analysts., Permanent 6 1 0 0
Economists, permanent 6 0 1 16.67
Finance and economics related, Permanent 164 9 9 5.49
Financial and related professionals, Permanent 64 7 3 4.69
Financial clerks and credit controllers, Permanent 65 0 1 1.54
Food services aids and waiters, Permanent 6 0 0 0
Head of Department 1 0 0 0
Human Resources & organisational development & related professional, Permanent 46 4 1 2.17
Human Resources clerks, Permanent 37 4 7 18.92
Human resources related, Permanent 10 0 1 10
Language practitioners, interpreters & other communicators, Permanent 1 0 0 0
Legal related, Permanent 1 0 0 0
Library mail and related clerks, Permanent 3 0 0 0
Logistical support personnel, Permanent 23 5 0 0
Material-recording and transport clerks, Permanent 9 0 0 0
Mathematicians and related professionals, Permanent 1 3 0 0
Messengers, porters and deliverers, Permanent 6 1 1 16.67
Other administrative & related clerks and organisers, Permanent 11 1 1 9.09
Other information technology personnel, Permanent 3 0 1 33.33
Other occupations, Permanent 1 0 0 0
Risk management and security services, Permanent 42 4 2 4.76
Secretaries & other keyboard operating clerks, Permanent 42 3 1 2.38
Security officers, Permanent 0 0 0 0
Senior managers, Permanent 69 2 5 7.25
Senior managers out of adjustment 4 0 1 25
Total 750 45 41 5.47
3.5.3 Reasons Why Staff Left the DepartmentTermination Type Number Percentage of Total Resignations
Death 4 9.76
Resignation 18 43.90
Expiry of contract 1 2.44
Dismissal – operational changes 0 0
Dismissal – misconduct 1 2.44
Dismissal – inefficiency 0 0
Discharged due to ill-health 0 0
Retirement 3 7.32
Transfer to other Public Service Departments 14 34.15
Other 0 0
Total 41 100
Total number of employees who left as a % of total employment 5.47
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3.5.4 Promotions by Critical Occupation
Occupation Employees 1 April 2018
Promotions to another Salary
Level
Salary Level Promotions as a % of Employees by
occupation
Progressions to another Notch
within Salary Level
Notch progressions as a % of Employees by occupation
Administrative related 117 2 1.70 84 71.79
Archivists, curators and related professionals 7 0 0 5 71.43
Client information clerks (switchboard, reception, information clerks) 2 0 0 1 50
Communication and information related 3 0 0 3 100
Computer system designers and analysts 6 0 0 4 66.67
Economists 6 0 0 4 66.67
Engineers and related professionals 0 0 0 0 0
Finance and economics related 164 5 3 125 76.22
Financial and related professionals 64 1 1.60 55 85.94
Financial clerks and credit controllers 65 0 0 57 87.69
Food services aids and waiters 6 0 0 6 100
Head of department/chief executive officer 1 0 0 1 100
Human resources & organisational development & related professionals 46 1 2.20 29 63.04
Human resources clerks 37 0 0 29 78.38
Human resources related 10 0 0 6 60
Language practitioners, interpreters & other communicators 1 0 0 1 100
Legal related 1 0 0 1 100
Library mail and related clerks 3 1 33.30 3 100
Logistical support personnel 23 0 0 20 86.96
Material-recording and transport clerks 9 0 0 8 88.89
Mathematicians and related professionals 1 0 0 0 0
Messengers, porters and deliverers 6 0 0 4 66.67
Other administrative & related clerks and organisers 11 0 0 9 81.82
Other information technology personnel 3 0 0 2 66.67
Other occupations 1 0 0 0 0
Risk management and security services 42 3 7.10 22.00 52.38
Secretaries & other keyboard operating clerks 42 1 2.40 37 88.10
Security officers 0 0 0 0 0
Senior managers 69 1 1.40 50 72.46
Senior managers out of adjustment 4 0 0 0 0
Total 750 15 2.00 566 75.47
3.5.5 Promotions by Salary Band
Salary Band Employees 1 April 2018
Promotions to another Salary Level
Salary bands Promotions as a % of Employees by
salary level
Progressions to another Notch within Salary Level
Notch progressions as a % of Employees by
salary band
Lower skilled (Levels 1-2) 0 0 0 0 0
Skilled (Levels 3-5) 20 1 5 16 80
Highly skilled production (Levels 6-8) 277 3 1.10 212 76.53
Highly skilled supervision (Levels 9-12) 375 9 2.40 275 73.33
Senior management (Levels 13-16) 47 2 4.30 41 87.23
Contract (Levels 13-16) 28 0 0 20 71.43
Contract (Levels 6-8) 0 0 0 0 0
Contract (Levels 9-12) 3 0 0 2 66.67
Contract other 0 0 0 0 0
Total 750 15 2 566 75.47
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3.6 Employment Equity
3.6.1 Total Number of Employees (Including Employees with Disabilities) Per Occupational Categories
Occupational CategoryMale Female
TotalAfrican Coloured Indian White African Coloured Indian White
Legislators, senior officials and managers 25 5 4 2 27 2 2 3 70
Professionals 122 9 2 7 161 4 3 9 317
Technicians and associate professionals 53 5 3 5 65 4 1 2 138
Clerks 30 3 3 1 104 15 6 5 167
Service and sales workers 15 0 0 0 29 0 0 0 44
Skilled agriculture and fishery workers 0 0 0 0 0 0 0 0 0
Labour and related workers 7 0 0 0 6 0 0 0 13
Craft and related trades workers 0 0 0 0 0 0 0 0 0
Plant and machine operators and assemblers 0 0 0 0 0 0 0 0 0
Elementary occupations 0 0 0 0 0 0 0 0 0
Senior Managers out of adjustment 2 0 0 0 1 0 0 0 3
Total 254 22 12 15 393 25 12 19 752
Employees with disabilities 4 2 0 0 9 2 0 1 18
3.6.2 Total Number of Employees (Including Employees with Disabilities) Per Occupational Bands
Occupational bandMale Female
TotalAfrican Coloured Indian White African Coloured Indian White
Top Management 1 1 0 0 2 0 0 1 5Senior Management 14 1 2 1 14 1 2 2 37Professionally qualified and experienced specialists and mid-management
106 10 4 8 122 3 2 4 259
Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents
109 7 4 5 231 20 8 12 396
Semi-skilled and discretionary decision making 8 0 0 0 12 0 0 0 20
Contract Top Management, Permanent 0 0 0 0 0 0 0 0 0
Contract (Senior Management), Permanent 10 3 2 1 11 1 0 0 28
Contract Professionally qualified and experienced specialists and mid-management, Permanent
3 0 0 0 0 0 0 0 3
Contract (Skilled Technical) 1 0 0 0 0 0 0 0 1
Senior Managers out of adjustment 2 0 0 0 1 0 0 0 3Total 254 22 12 15 393 25 12 19 752
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3.6.3 Recruitment
Occupational BandMale Female
TotalAfrican Coloured Indian White African Coloured Indian White
Professionally qualified and experienced specialists and mid-management
5 0 0 0 6 0 0 1 12
Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents
12 0 0 0 13 0 0 0 25
Semi-skilled and discretionary decision making 1 0 0 0 1 0 0 0 2
Contract Top Management, Permanent 0 0 0 0 0 0 0 0 0
Contract (Senior Management) permanent 2 0 0 0 3 0 0 0 5
Contract Professionally qualified and experienced specialists and mid-management, Permanent
0 0 0 0 0 0 0 0 0
Contract (Skilled Technical) 1 0 0 0 0 0 0 0 1
Total 21 0 0 0 23 0 0 1 45
Employees with disabilities 0 0 0 0 0 0 0 0 0
3.6.4 Promotions
Occupational BandsMale Female
TotalAfrican Coloured Indian White African Coloured Indian White
Top Management 0 0 0 0 0 0 0 0 0
Senior Management 1 0 0 0 1 0 0 0 2
Professionally qualified and experienced specialists and mid-management
3 0 1 0 5 0 0 0 9
Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents
1 0 0 0 2 0 0 0 3
Semi-skilled and discretionary decision making 1 0 0 0 0 0 0 0 1
Contract (Top Management), Permanent 0 0 0 0 0 0 0 0 0
Contract (Senior Management), Permanent 0 0 0 0 0 0 0 0 0
Total 6 0 1 0 8 0 0 0 15
Employees with disabilities 0 0 0 0 0 0 0 0 0
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3.6.5 Terminations
Occupational BandsMale Female
TotalAfrican Coloured Indian White African Coloured Indian White
Senior Management 2 0 0 0 0 0 0 0 2
Professionally qualified and experienced specialists and mid-management
8 1 0 0 9 0 0 1 19
Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents
6 0 0 0 5 2 0 1 14
Contract (Top Management), Permanent 0 0 0 0 1 0 0 0 1
Contract (Senior Management), Permanent 2 0 0 0 1 0 0 0 3
Contract (Professionally qualified), Permanent 0 0 0 0 0 0 0 0 0
Contract (Skilled technical), Permanent 0 0 0 0 0 0 0 0 0
Semi-skilled and discretionary decision making, Permanent 2 0 0 0 0 0 0 0 2
Total 20 1 0 0 16 2 0 2 41
Employees with Disabilities 0 0 0 0 0 0 0 0 0
3.6.6 Disciplinary Action for the Period 2018/2019Disciplinary action Male Female Total
African Coloured Indian White African Coloured Indian White
Dismissal 0 0 0 0 1 0 0 0 1
Total 0 0 0 0 1 0 0 0 1
3.6.7 Skills Development for the Period 2018/2019
Occupational categoryMale Female
TotalAfrican Coloured Indian White African Coloured Indian White
Legislators, senior officials and managers 29 6 4 2 33 2 2 3 81
Professionals 130 10 2 7 174 4 3 9 339Technicians and associate professionals 61 5 3 5 77 4 1 3 159
Clerks 50 3 3 1 158 16 7 6 244
Service and sales workers 16 0 0 0 29 0 0 0 45
Skilled agriculture and fishery workers 0 0 0 0 0 0 0 0 0
Laboured and related workers 0 0 0 0 0 0 0 0 0
Craft and related trades workers 0 0 0 0 0 0 0 0 0
Plant and machine operators and assemblers 0 0 0 0 0 0 0 0 0
Elementary occupations 7 0 0 0 6 0 0 0 13
Total 293 24 12 15 477 26 13 21 881Employees with disabilities 4 2 0 0 9 2 0 1 18
**The total number of officials trained for 2018/2019 FY include the total employees as at 31 March 2019, GPT Youth Development Programme and Bursary Holders.
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3.7 Signing of Performance Agreements by SMS Members
3.7.1 Signing of Performance Agreements by SMS members for the Period 2018/2019
SMS Level Total number of funded SMS posts
Total number of SMS members
Total number of signed performance agreements
Signed performance agreements as % of total number of SMS members
Director-General/ Head of Department 1 1 1 100
Salary Level 16 0 0 0 0
Salary Level 15 4 4 4 100
Salary Level 14 20 20 19 95
Salary Level 13 49 49 48 98
Total 74 74 72 97
* for purposes of performance agreements all SMS members are included irrespective of their placement post.
3.7.2 Reasons for Not Having Concluded Performance Agreements for All SMS Members as on 31 May 2018Reasons
Officials, who joined the department during the financial year and were within the first three months of their appointment
3.7.3 Disciplinary Steps Taken Against SMS Members for not Having Concluded Performance AgreementsReasons
N/A
3.8 Performance Rewards
3.8.1 Performance Rewards by Race, Gender and Disability for the Period 2018
Race and Gender
Beneficiary Profile Cost
Number of beneficiaries
Number of employees
% of total within group Cost (R’000) Average cost per
employee
African
Male 181 250 72.40 3 233 17 862
Female 262 384 68.23 4 049 15 456
Asian
Male 7 12 58.33 160 22 896
Female 11 12 91.67 176 15 968
Coloured
Male 15 20 75.00 344 22 954
Female 16 23 69.57 214 13 400
White
Male 10 15 66.67 181 18 091
Female 12 18 66.67 239 19 884
Employees with Disabilities 13 18 72.22 153 11 744
Total 527 752 70.08 8 749 16 602
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3.8.2 Performance Rewards by Salary Band for Personnel Below Senior Management Service
Salary band
Beneficiary Profile Cost Total cost as a % of the
total personnel expenditure
Number of beneficiaries
Number of employees
% of total within salary bands
Total Cost (R’000)
Average cost per employee
Skilled (level 3-5) 18 20 90 138 7 687 0.03
Highly skilled production (level 6-8) 191 284 67.25 2 304 12 064 0.49
Highly skilled supervision (level 9-12) 266 371 71.70 4 420 16 615 0.93
Contract (Level 3-5) 0 0 0 0 0 0
Contract (Level 6-8) 0 1 0 0 0 0
Contract (Level 9-12) 1 3 33.33 15 15 446 0.00SMS out of adjustment 2 3 66.67 56 28 229 0.01
Total 478 682 70.09 6 934 14 507 1.46
3.8.3 Performance Rewards by Critical Occupation
Critical Occupation
Beneficiary Profile Cost
Number of beneficiaries
Number of employees
% of total within occupation Total Cost (R’000) Average cost per
employee
Administrative related 89 111 80.18 1 520 17 079
Archivists curators and related professionals 6 7 85.71 76 12 650
Client information clerks (switchboard, reception, information clerks) 2 2 100.00 22 10 800
Communication and information related 2 3 66.67 28 14 014
Computer system designers and analysts. 6 7 85.71 81 13 427
Economists 5 6 83.33 67 13 379
Finance and economics related 110 161 68.32 1 822 16 564
Financial and related professionals 41 66 62.12 567 13 839
Financial clerks and credit controllers 36 64 56.25 413 11 469
Food services aids and waiters 6 6 100 43 7 113
Head of department/chief executive officer 0 1 0 0 0
Human resources & organisation development & relate prof 34 48 70.83 567 16 667
Human resources clerks 25 35 71.43 283 11 303
Human resources related 6 9 66.67 100 16 660
Language practitioners interpreters & other communications 1 1 100 13 13 420
Legal related 1 1 100 16 16 318
Library mail and related clerks 3 2 150 25 8 415
Logistical support personnel 15 28 53.57 184 12 270
Material-recording and transport clerks 7 8 87.50 65 9 262
Mathematicians and related professionals 0 4 0 0 0
Messengers porters and deliverers 6 6 100.00 51 8 567
Other administrators & related clerks and organisers 8 14 57.14 80 9 972
Other information technology personnel 3 2 150.00 41 13 714
Other occupations 0 2 0 0 0
Risk management and security services 28 44 63.64 394 14 074
Secretaries & other keyboard operating clerks 36 42 85.71 420 11 674
Senior managers 49 69 71.01 1 815 37 043
SMS out of adjustment 2 3 66.67 56 28 229
Total 527 752 70.08 8 749 16 602
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3.8.4 Performance Related Rewards (Cash Bonus), by Salary Band for Senior Management Service
Salary band
Beneficiary Profile Cost Total cost as a % of the total personnel expenditureNumber of
beneficiariesNumber of employees
% of total within salary bands
Total Cost (R’000)
Average cost per employee
Band A 33 49 67.35 1 103 33 427 0.23
Band B 13 17 76.47 517 39 746 0.11
Band C 3 3 100.00 195 65 101 0.04
Band D 0 1 0.00 0 0 0.00
Total 49 70 70 1 815 37 043 0.38
3.9 Foreign Workers by Major Occupation
The tables below summarise the employment of foreign nationals in the department in terms of salary band and major occupation.
3.9.1 Foreign Workers by Salary Band
Salary band01 April 2017 31 March 2018 Change
Number % of total Number % of total Number % Change
Senior Management (Levels 13-16) 1 100 1 100 0 0
Total 1 100.00 1 100 0 100.00
3.9.2 Foreign Workers by Major Occupation
Major occupation01 April 2017 31 March 2018 Change
Number % of total Number % of total Number % Change
Professionals and managers 1 100.00 1 100 0 0
Total 1 100.00 1 100 0 0
3.10. Leave Utilisation
3.10.1 Sick Leave for the Period 1 January 2018 to 31 December 2018
Salary band Total days% Days with
Medical certification
Number of Employees using
sick leave
% of total employees using
sick leave
Average days per employee
Estimated Cost (R’000)
Contract (Levels 13-16) 166 75.30 24 3.4 7 704
Contract (Levels 3-5) 0 0 0 0 0 0
Contract (Levels 6-8) 0 0 0 0 0 0
Contract other 218 44.95 57 8.0 4 94
Skilled (levels 3-5) 86 76.74 15 2.1 6 65
Highly skilled production (levels 6-8) 1 878 72.79 258 36.2 7 2 618
Highly skilled supervision (levels 9 -12) 2 280 68.73 325 45.6 7 5 691
Top and Senior management (levels 13-16) 216 76.39 30 4.2 7 951
Contract (Levels 9-12) 9 100 3.00 0.4 3 25
Total 4 853 70.00 712 100 7 10 148
* The calculations and percentages shown on this table relate to and account for the employees that have utilised the sick leave for
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the period under review. It is not a reflection of utilisation for the whole department.3.10.2 Disability Leave (Temporary and Permanent) for the Period 1 January 2018 to 31 December 2018
Salary band Total days% Days with
Medical certification
Number of Employees using disability leave
% of total employees using disability leave
Average days per employee
Estimated Cost (R’000)
Contract (Levels 13-16) 25 100 2 3.39 13 119
Contract (Levels 9-12) 0 0 0 0 0 0
Contract (Levels 3-5) 0 0 0 0 0 0
Skilled (Levels 3-5) 99 100 3 5.08 33 86
Highly skilled production (Levels 6-8) 305 100 15 25.42 20 472
Highly skilled supervision (Levels 9-12) 1 156 100 32 54.24 36 3 238
Senior management (Levels 13-16) 261 100 5 8.47 52 1 135
Other 23 100 2 3.39 12 18
Total 1 869 100 59 100 32 5 067
* The calculations and percentages shown on this table relate to and account for the employees that have utilised the incapacity leave for the period under review. It is not a reflection of utilisation for the whole department.
3.10.3 Annual Leave for the Period 1 January 2018 to 31 December 2018Salary band Total days taken Number of Employees using
annual leave Average per employee
Contract (Levels 13-16) 709 32.00 22
Contract (Levels 3-5) 0 0 0
Contract (Levels 6-8) 4 1 4
Contract (Levels 9-12) 43 3 14
Contract other 1 243 100.00 12
Skilled (Levels 3-5) 397 21 19
Highly skilled production (Levels 6-8) 6 753 295 23
Highly skilled supervision (Levels 9-12) 9 234 386 24
Senior management (Levels 13-16) 1 257 46 27
Total 19 640 884 22
The table above 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.
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3.10.4 Capped Leave for the Period 1 January 2018 to 31 December 2018
Salary band Total days of capped leave taken
Number of Employees using capped leave
Average number of days taken per employee
Average capped leave per employee as on 31 March 2018
Contract (Level 13-16) 0 0 0 97
Contract (Level 9-12) 0 0 0 0
Contract (Level 3-5) 0 0 0 0
Contract (other) 0 0 0 0
Highly skilled production (Levels 6-8)
0 0 0 31
Highly skilled supervision (Levels 9-12)
15 3 5 39
Senior management (Levels 13-16)
16 1 16 15
Total 31 4 8 36
*The average capped leave per employee is calculated by dividing the number of employees with capped leave per salary band by the number of capped leave available in that salary band at the end of the financial year. The calculation is only shown in full in the original oversight report and not required for purposes of this table.
3.10.5 Leave Payouts for the Period 1 April 2018 and 31 March 2019
Reason Total amount (R’000) Number of employees Average per employee (R’000)
Leave payout for 2018/19 due to non-utilisation of leave for the previous cycle 1 019 20 50 949
Total 1 019 20 50 949
3.11 HIV/AIDS & Health Promotion Programmes
3.11.1 Steps Taken to Reduce the Risk of Occupational ExposureUnits/categories of employees identified to be at high risk of contracting HIV & related diseases (if any)
Key steps taken to reduce the risk
Employees who change sexual partners Promoting good relationship among couples
Employees between the ages of 25-40 are considered to be at high risk for HIV contraction.
The Employee Health & Wellness unit promote safe sex through various platforms, such as the department intranet.
Employees with more than one sexual partner Promote the use of condoms and lubricants as a prevention measure.Promote on-going HIV testing.On-going educational materials through the intranet.
Employees who practice unsafe sex PreP and condom use is encouraged to employees through various educational sessions.
Employees in abusive relationships cannot negotiate the use of condoms with their partners
Raising awareness about gender-based violence at various platforms.Provide counselling and support through the outsourced service provider.Promoting the use of Prep to prevent new infections.
Employees diagnosed with STIs and recurrent urinary tract infections Promotion of good sexual health through articles published on the intranet and pamphlets.
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3.11.2 Details of Health Promotion and HIV/AIDS Programmes Question Yes No Details, if yes
1. Has the department designated a member of the SMS to implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position.
Yes Mr Lovell May, Director Human Resources Development
2. Does the department have a dedicated unit or has it designated specific staff members to promote 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.
Yes Number of employees: 4. Overall budget for unit: R270 000
3. Has the department introduced an Employee Assistance or Health Promotion Programme for your employees? If so, indicate the key elements/services of this Programme.
Yes The EHWP offers therapeutic and psychosocial support to employees and their immediate family members through the GPG outsourced service.
4. Has the department established (a) committee(s) as contemplated in Part VI E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent.
Yes Miranda HenryAyanda MneneLerato BilankuluCindi LungilePitso ZwaneMazwamahle GwebuMkrola Sithembinkosi Sepotokela RachelIdah MogaleRambuda UlendaMosate Tisetso
Andiswa ThantamisoLephogole Keboetsoe Thabang LetsholoSherif Rashid Nhlakanipho KuneneNhlapo, Margaret Njabulo NtuliLedile NdlangalalaMmasape PhashaHalata Refiloe
5. Has the department reviewed its employment policies and practices to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so reviewed.
Yes Health andProductive Management PolicyWellness Management PolicyHIV, AIDS, TB & STI PolicyOccupational Health and Safety Policy
6. Has the department introduced measures to protect HIV-positive employees or those perceived to be HIV-positive from discrimination? If so, list the key elements of these measures.
Yes The Departmental HIV/AIDS policy adheres to anti-discriminatory values and does not coerce employees to disclose their diagnosis. Secondly, the Employee Health & Wellness unit adheres to strict confidentiality code to ensure employees are protected
7. Does the department encourage its employees to undergo Voluntary Counselling and Testing? If so, list the results that you have you achieved.
Yes Government Employees Medical Scheme conducted Voluntary Counselling and Testing (VCT) during the health screening sessions conducted in the department.A total of 144 out of 239 employees screened for non-communicable diseases underwent VCT
8. Has the department developed measures/indicators to monitor & evaluate the impact of its health promotion programme? If so, list these measures/indicators.
Yes The measures are based on medical reports received from Careways & GEMS after conducting health & wellness screenings.
Reporting quarterly on the programs implemented, indicating the achievements, gaps and proposed solutions to identified gaps.
3.12 Labour Relations
3.12.1 Collective Agreements for the Period 2018/2019Total number of Collective agreements None
3.12.2 Misconduct and Disciplinary Hearings Finalised for the Period 2018/2019Outcome of Disciplinary Hearings Number % of Total
Dismissal 1 100
Total 1 100
3.12.3 Types of Misconduct Addressed at Disciplinary HearingsType of Misconduct Number % of Total
Insubordination 1 100
Total 1 100
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3.12.4 Grievances Logged for the Period 1 April 2018 and 31 March 2019Grievances Number % of Total
Number of grievances resolved 7 50
Number of grievances not resolved 7 50
Total number of grievances lodged 14 100
3.12.5 Disputes Logged with Councils for the Period 2018/2019Disputes Number % of Total
Number of disputes upheld 0 0
Number of disputes dismissed 0 0
Number of disputes pending outcome 2 50
Number of disputes settled 2 50
Total number of disputes lodged 4 100
3.12.6 Strike Actions for the Period 2018/2019Total number of persons working days lost 0
Total costs working days lost 0
Amount recovered as a result of no work no pay (R’000) 0
3.12.7 Precautionary Suspensions for the Period 1 April 2018 and 31 March 2019Number of people suspended 0
Number of people whose suspension exceeded 30 days 0
Average number of days suspended 0
Cost of suspension (R’000) R0
3.13 Skills Development
3.13.1 Training Needs Identified
Occupational category GenderNumber of
employees as at 1 April 2018
Training needs identified at start of the reporting period
LearnershipsSkills
Programmes & other short
courses
Other forms of training Total
Legislators, senior officials and managers
Female 32 0 32 5 37
Male 31 0 28 3 31
ProfessionalsFemale 178 0 67 13 80
Male 145 0 73 10 83
Technicians and associate professionals
Female 73 0 88 13 101
Male 64 0 72 8 80
Clerks Female 133 13 65 44 122
Male 38 11 115 9 135
Elementary occupationsFemale 34 0 4 0 4
Male 22 0 3 0 3
Sub TotalFemale 450 13 256 75 344
Male 300 11 291 30 332
Total 750 24 457 105 676
**Training needs identified in the Workplace Skills Plan for 2018/2019 were 547officials; Learnership 24 officials and 105 Bursary Holders.
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3.13.2 Training Provided
Occupational category GenderNumber of
employees as at 1 April 2018
Training provided within the reporting period
Learnerships
Skills Programmes & other short
courses
Other forms of training Total
Legislators, senior officials and managers
Female 32 0 32 5 40
Male 31 0 31 3 41
ProfessionalsFemale 178 0 178 13 190
Male 145 0 145 9 149
Technicians and associate professionals
Female 73 0 73 13 85
Male 64 0 64 8 74
Clerks Female 133 13 133 44 187
Male 38 11 38 9 57
Elementary occupationsFemale 34 0 34 0 35
Male 22 0 22 1 23
Sub TotalFemale 450 13 450 75 538
Male 300 11 300 30 341
Total 750 24 750 105 879
** Training was increased by the compulsory Occupational Health and Safety Awareness that was conducted during the financial year.
3.14 Injury on Duty
3.14.1 Injury on Duty for the Period 2017/2018Nature of injury on duty Number % of total
Required basic medical attention only 1 100
Temporary Total Disablement 0 0
Permanent Disablement 0 0
Fatal 0 0
Total 1 100
3.15 Utilisation of Consultants
3.15.1 Report on Consultant Appointments Using Appropriated Funds for the Period 2018/19
Project title Total number of consultants that worked on project
Duration(work days) Contract value in Rand
Probity Audit 41 9 360 R 40 510 445,02
Internal Audit 87 1 286 R 5 039 864,78
Business Advisory 277 3 337 R 47 566 288,22
Infrastructure Delivery Management system (IDMS) 3 959 R 34 179 824,00
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Total number of projects Total individual consultants Total durationwork days Contract value in Rand
Probity Audit - 104 projects 41 9 360 R 40 510 445,02
Internal Audit - 27 projects 87 1 286 R 5 039 864,78
Business Advisory - 25 projects 277 3 337 R 47 566 288,22
Infrastructure Delivery Management system (IDMS) - 5 projects 3 959 R 34 179 824,00
3.15.2 Analysis of Consultant Appointments Using Appropriated Funds, in Terms of Historically Disadvantaged Individuals (HDIs) for the Period 2017/2018
Project title Percentage ownership by HDI groups
Percentage management by HDI groups
Number of consultants from HDI groups that work on the
project
Probity Audit 75% 16% 36
Internal Audit 49% 7% 119
Business Advisory 78% 16% 138
Infrastructure Delivery Management system (IDMS) - Quantity surveyor 0% 0% 1
3.15.3 Report on consultant appointments using Donor funds
Project title Total number of consultants that worked on project
Duration(work days)
Donor and contract value in Rand
N/A N/A N/A N/A
Total number of projects Total individual consultants Total durationwork days Total contract value in Rand
N/A N/A N/A N/A
3.15.4 Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs)
Project title Percentage ownership by HDI groups
Percentage management by HDI groups
Number of consultants from HDI groups that work on the
project
N/A N/A N/A N/A
3.16 Severance Packages
3.16.1 Granting of Employee Initiated Severance Packages
No severance packages were initiated or offered.
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PART E: FINANCIAL INFORMATION
Report Of The Auditor-General 74
Annexure - Auditor-General’s Responsibility For The Audit 77
Appropriation Statement 78
Notes To The Appropriation Statement 96
Statement Of Financial Performance 97
Statement Of Financial Position 98
Statement Of Changes In Net Assets 99
Cash Flow Statement 100
Accounting Policies 101
Notes To The Annual Financial Statements 105
Unaudited Annexures To The Annual Financial Statements 120
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Report of the Auditor-Genreal to Gauteng Provincial Legislature on Vote No.14: Gauteng Provincial Treasury
Report on the audit of the financial statements
Opinion
1. I have audited the financial statements of the Gauteng Provincial Treasury set out on pages 78 to 119, which comprise the appropriation statement, the statement of financial position as at 31 March 2019, the statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies. 2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Gauteng Provincial Treasury as at 31 March 2019, and its financial performance and cash flows for the year then ended in accordance with the Modified Cash Standard (MCS) prescribed by the National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA).
Basis for opinion
3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of this auditor’s report.
4. I am independent of the department in accordance with sections 290 and 291 of the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants (IESBA code), parts 1 and 3 of the International Ethics Standards Board for Accountants’ International code of ethics for professional accountants (including International Independence Standards) and the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA codes.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Other matter
6. I draw attention to the matter below.
Unaudited supplementary schedules
7. The supplementary information set out on pages 120 to 121 does not form part of the financial statements and is presented as additional information. I have not audited these schedules and accordingly, I do not express and opinion on it.
Responsibilities of the accounting officer for the financial statements
8. The accounting officer is responsible for the preparation and fair presentation of the financial statements in accordance with MCS prescribed by the National Treasury and the requirements of the PFMA 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.
9. In preparing the financial statements, the accounting officer is responsible for assessing the Departments ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the appropriate governance structure either intends to liquidate the department or to cease operations, or has no realistic alternative but to do so.
Auditor-general’s responsibilities for the audit of the financial statements
10. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
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11. A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report.
Report on the audit of the annual performance report
Introduction and scope
12. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof, I have a responsibility to report material findings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.
13. My procedures address the reported performance information, which must be based on the approved performance planning documents of the department. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters.
14. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected programmes presented in the annual performance report of the department for the year ended 31 March 2019:
Programmes Pages in the annual performance report
Programme 2 – sustainable fiscal resource management 25 - 27
Programme 4 – provincial supply chain management 31 - 32
Programme 5 – municipal financial governance 32 - 33
15. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.
16. I did not raise any material findings on the usefulness and reliability of the reported performance information for these programmes.
Other matters
17. I draw attention to the matters below.
Achievement of planned targets
18. Refer to the annual performance report on pages 23 to 34 for information on the achievement of planned targets for the year and explanations provided for the under-/overachievement.
Report on the audit of compliance with legislation
Introduction and scope
19. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material findings on the compliance of the department with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.
20. I did not raise material findings on compliance with the specific matters in key legislation set out in the general notice issued in terms of the PAA.
Other information
21. The accounting officer is responsible for the other information. The other information comprises the information included in the annual report. The other information does not include the financial statements, the auditor’s report and those selected programmes presented in the annual performance report that have been specifically reported in this auditor’s report.
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22. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.23. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programmes presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated. 24. The other information I obtained prior to the date of this auditor’s report is a draft of the 2018-19 annual report and the final 2018-19 annual report and is expected to be made available to us after 31 July 2019. If, based on the work I have performed on the other information that I obtained prior to the date of this auditor’s report, I conclude that there is a material misstatement of this other information, I am required to report that fact. When I do receive and read the final 2018-19 annual report, if I conclude that there is a material misstatement therein, I am required to communicate the matter to those charged with governance and request that the other information be corrected. If the other information is not corrected, I may have to retract this auditor’s report and re-issue an amended report as appropriate. However, if it is corrected this will not be necessary.
Internal control deficiencies
25. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance on it. I did not identify any significant deficiencies in internal control.
Other reports
26. I draw attention to the following engagements conducted by department that had, or could have, an impact on the matters reported in the department’s financial statements, reported performance information, compliance with applicable legislation and other related matters. These reports did not form part of my opinion on the financial statements or my findings on the reported performance information or compliance with legislation.
27. The department’s forensic services unit investigated two allegations of possible conflict of interest in the 2016-17 financial disclosures for non-senior management services, which covered the period 19 February 2018 to 23 July 2018 and 23 July 2018 to 20 December 2018. The investigations concluded on 23 July 2018 and 20 December 2018 and recommendations were still being implemented on the date of the report.
28. The department’s forensic services unit investigated allegations of suspected fraudulent documents that was included by department officials after the closing date of the tender process, which covered the period 14 March 2018 to 15 October 2018. The investigations concluded on 15 October 2018 and recommendations were still being implemented on the date of the report.
29. The department’s forensic services unit investigated allegations of improper recruitment processes. The investigation started on 23 April 2018 and is still to be concluded.
30. The department’s forensic services unit investigated allegations of possible fraudulent documents submitted by bidders. The investigation started on 19 December 2018 and is still to be concluded.
_______________Johannesburg31 July 2019
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Annexure - Auditor-General’s Responsibility for the Audit
1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements, and the procedures performed on reported performance information for selected programmes and on the department’s compliance with respect to the selected subject matters.
Financial statements
2. In addition to my responsibility for the audit of the financial statements as described in this auditor’s report, I also: • identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control
• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the department’s internal control
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the accounting officer.
• conclude on the appropriateness of the accounting officer’s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Gauteng Provincial Treasury’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of this auditor’s report. However, future events or conditions may cause a department to cease continuing as a going concern
• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation
Communication with those charged with governance
3. I communicate with the accounting officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. 4. I also confirm to the accounting officer that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and, where applicable, related safeguards
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Appropriation StatementFor The Year Ended 31 March 2019
Appropriation per programme
2018/19 2017/18
Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual Expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Programme
1. Administration 145 635 - (1 866) 143 769 132 194 11 575 91.9% 135 576 132 861
2. Sustainable Fiscal Resource Management 148 464 - - 148 464 145 130 3 334 97.8% 141 832 140 558
3. Financial Governance 163 964 - (1 141) 162 823 157 529 5 294 96.7% 149 040 135 622
4. Provincial Supply Chain Management 110 834 - 1 119 111 953 107 996 3 957 96.5% 103 532 96 648
5. Municipal Financial Governance 45 712 - (344) 45 368 44 955 413 99.1% 44 896 43 471
6. Gauteng Audit Services 91 054 - 2 232 93 286 88 529 4 757 94.9% 80 031 76 799
Total 705 663 - - 705 663 676 333 29 330 95.8% 654 907 625 959
2018/19 2017/18Final
AppropriationActual
ExpenditureFinal
AppropriationActual
Expenditure
Total (brought forward)
Reconciliation with statement of financial performance
ADD
Departmental receipts 854 640 621 440
Actual amounts per statement of financial performance (total revenue) 1 560 303 1 276 347
Actual amounts per statement of financial performance (total expenditure) 676 333 625 959
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Appropriation per economic classification
2018/19 2017/18
Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Economic classification
Current payments 623 039 (353) (38) 622 648 601 115 21 533 96.5% 582 578 554 342
Compensation of employees 494 383 (306) - 497 077 474 330 19 747 96.0% 461 041 452 209Salaries and wages 432 994 (55) - 432 939 417 376 15 563 96.4% 404 738 398 580Social contributions 61 389 (251) - 61 138 56 954 4 184 93.2% 56 303 53 629
Goods and services 128 656 (47) (38) 128 571 126 785 1 786 98.6% 121 537 102 133Administrative fees 642 590 - 1 232 1 224 8 99.4% 961 948Advertising 7 956 1 279 (138) 9 097 9 095 2 100.0% 7 775 7 589Minor assets 300 (16) (18) 266 266 - 100.0% 1 203 1 202Audit costs: External 3 868 (61) - 3 807 3 372 435 88.6% 3 509 3 315Bursaries: Employees 4 692 (643) (5) 4 044 4 043 1 100.0% 4 529 4 528Catering: Departmental activities 1 211 (136) - 1 075 1 057 18 98.3% 1 019 1 011Communication 3 286 92 (240) 3 138 3 137 1 100.0% 3 024 3 023Computer services 10 130 2 798 (220) 12 708 12 540 168 98.7% 14 173 13 672Consultants: Businessand advisory services 65 641 (2 224) 1 088 64 505 63 540 965 98.5% 53 371 38 023Legal services 2 439 591 - 3 030 3 030 - 100.0% 5 213 4 247Contractors 459 (58) - 401 399 2 99.5% 491 489Agency and support/outsourced services 174 (77) - 97 96 1 99.0%Fleet services 742 15 - 757 757 - 100.0% 583 583Consumable supplies 578 180 (30) 728 728 - 100% 653 650Consumable: Stationery,printing and office supplies 2 783 (555) (342) 1 886 1 881 5 99.7% 2 355 2 277Operating leases 6 479 102 - 6 581 6 581 - 100.0% 4 957 4 956Property payments 5 114 (882) - 4 232 4 231 1 100.0% 5 578 5 577Travel and subsistence 2 965 (241) 49 2 773 2 686 87 96.9% 2 587 2 190Training and development 5 017 (896) - 4 121 4 118 3 99.9% 5 465 4 352Operating payments 2 663 (409) (83) 2 171 2 086 85 96.1% 2 588 2 284Venues and facilities 1 517 504 (99) 1 922 1 918 4 99.8% 1 503 1 217
Transfers and subsidies 70 588 306 - 70 894 70 675 219 99.7% 67 496 67 413Departmental agenciesand accounts 58 544 - - 58 544 58 544 - 100.0% 55 385 55 385
Departmental agenciesand accounts 58 544 - - 58 544 58 544 - 100.0% 55 385 55 385
Non-profit institutions 10 000 - - 10 000 10 000 - 100.0% 10 000 10 000Households 2 044 306 - 2 350 2 131 219 90.7% 2 111 2 028
Social benefits 712 (122) 631 1 221 1 119 102 91.6% 1 033 1 026Other transfers to households 1 332 428 (631) 1 129 1 012 117 89.6% 1 078 1 002
Payments for capital assets 12 036 - - 12 036 4 460 7 576 37.1% 4 821 4 196Machinery and equipment 12 036 - - 12 036 4 460 7 576 37.1% 4 792 4 168
Transport equipment 320 - - 320 319 1 99.7% - -Other machinery andequipment 11 716 - - 11 716 4 141 7 575 35.3% 4 792 4 168Intangible assets
Software and other intangibleassets 29 28
Payments for financial assets - 47 38 85 83 2 97.6% 12 8
Total 705 663 - - 705 663 676 333 29 330 95.8% 654 907 625 959
Appropriation StatementFor The Year Ended 31 March 2019
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Appropriation StatementFor The Year Ended 31 March 2019
Programme 1: ADMINISTRATION
2018/19 2017/18
Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Sub programme1. Office of the MEC 6 876 45 - 6 921 6 456 465 93.3% 6 916 6 9102. Office of the HOD 19 545 (45) (87) 19 413 18 771 642 96.7% 19 140 19 1333. Corporate Management 79 618 1 087 (1 487) 79 218 79 087 131 99.8% 80 988 79 4664. Financial Management
Services (CFO) 39 596 (1 087) (292) 38 217 27 880 10 337 73.0% 28 532 27 352
Total for sub programmes 145 635 - (1 866) 143 769 132 194 11 575 91.9% 135 576 132 861
Economic classification
Current payments 132 167 (20) (955) 131 192 127 310 3 882 97.0% 129 681 127 669Compensation of employees 94 673 - - 94 673 90 807 3 866 95.9% 89 102 87 154
Salaries and wages 83 700 (71) - 83 629 80 068 3 561 95.7% 78 446 77 133Social contributions 10 973 71 - 11 044 10 739 305 97.2% 10 656 10 021
Goods and services 37 494 (20) (955) 36 519 36 503 16 100.0% 40 579 40 515Administrative fees 117 48 - 165 165 - 99.8% 258 254Advertising 417 170 (138) 449 448 1 100.0% 225 225Minor assets 300 (16) (18) 266 266 - 100.0% 1 203 1 202Audit costs: External 2 500 (60) - 2 440 2 440 - 100.0% 2 462 2 462Bursaries: Employees 4 692 (643) (5) 4 044 4 043 1 100.0% 4 529 4 528Catering: Departmentalactivities 390 14 - 404 403 1 99.8% 358 355Communication 3 286 92 (240) 3 138 3 137 1 100.0% 3 024 3 023Computer services 4 151 (45) - 4 106 4 103 3 99.9% 7 526 7 488Consultants: Business andadvisory services 347 (22) - 325 324 1 99.7% 442 441Legal services 2 439 474 - 2 913 2 913 - 100.0% 3 047 3 047Contractors 459 (132) - 327 325 2 99.4% 457 455Fleet services 742 15 - 757 757 - 100.0% 583 583Consumable supplies 578 175 (30) 723 723 - 100.0% 643 642Consumable: Stationery,printing and office supplies 1 405 (11) (342) 1 052 1 051 1 99.9% 1 481 1 481Operating leases 6 479 102 - 6 581 6 581 - 100.0% 4 957 4 956Property payments 5 114 (882) - 4 232 4 231 1 100.0% 5 578 5 577Travel and subsistence 1 198 57 - 1 255 1 255 - 100.0% 1 109 1 106Training and development 1 170 615 - 1 785 1 784 1 99.9% 1 178 1 177Operating payments 984 (72) (83) 829 828 1 99.9% 916 913Venues and facilities 726 101 (99) 728 726 2 99.7% 603 600
Transfers and subsidies 1 432 - (911) 521 405 116 77.7% 1 073 995Households 1 432 - (911) 521 405 116 77.7% 1 073 995
Social benefits 100 12 - 112 112 - 100.0% 73 71Other transfers tohouseholds 1 332 (12) (911) 409 293 116 71.6% 1 000 924
Payments for capital assets 12 036 - - 12 036 4 460 7 576 37.1% 4 821 4 196Machinery and equipment 12 036 - - 12 036 4 460 7 576 37.1% 4 792 4 168
Transport equipment 320 - - 320 319 1 99.7%Other machinery andequipment 11 716 - - 11 716 4 141 7 575 35.3% 4 792 4 168
Intangible assetsSoftware and otherintangible assets 29 28
Payments for financialassets - 20 - 20 19 1 95.0% 1 1
Total 145 635 - (1 866) 143 769 132 194 11 575 91.9% 135 576 132 861
81
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Appropriation StatementFor The Year Ended 31 March 2019
1.1 OFFICE OF THE MEC
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments 6 876 45 - 6 921 6 456 465 93.3% 6 916 6 910Compensation of employees 6 200 - - 6 200 5 737 463 92.5% 6 217 6 216Goods and services 676 45 - 721 719 2 99.7% 699 694
Total 6 876 45 - 6 921 6 456 465 93.3% 6 916 6 910
1.2 OFFICE OF THE HOD
Economic classification
2018/19 2017/18
Adjusted Appropriation
Shifting ofFunds
Virement Final Appropriation
Actual Expenditure Variance
Expenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments 19 545 (45) (87) 19 413 18 771 642 96.7% 19 125 19 118
Compensation of employees 18 433 - - 18 433 17 792 641 96.5% 17 671 17 669Goods and services 1 112 (45) (87) 980 979 1 99.9% 1 454 1 449
Transfers and subsidies - - - - - - - 15 15Households - - - - - - - 15 15
Total 19 545 (45) (87) 19 413 18 771 642 96.7% 19 140 19 133
1.3 CORPORATE MANAGEMENT
Economic classification
2018/19 2017/18
Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments 78 186 1 076 (576) 78 686 78 672 14 100.0% 79 929 78 485Compensation of employees 48 703 1 087 - 49 790 49 787 3 100.0% 48 689 47 295Goods and services 29 483 (11) (576) 28 896 28 885 11 100.0% 31 240 31 190
Transfers and subsidies 1 432 - (911) 521 405 116 77.7% 1 058 980Households 1 432 - (911) 521 405 116 77.7% 1 058 980
Payments for financialassets - 11 - 11 10 1 90.9% 1 1
Total 79 618 1 087 1 487 79 218 79 087 131 99.8% 80 988 79 466
82
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Appropriation StatementFor The Year Ended 31 March 2019
1.4 FINANCIAL MANAGEMENT SERVICES (CFO)
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 27 560 (1 096) (292) 26 172 23 411 2 761 89.5% 23 711 23 156Compensation of employees 21 337 (1 087) - 20 250 17 491 2 759 86.4% 16 525 15 974Goods and services 6 223 (9) (292) 5 922 5 920 2 100.0% 7 186 7 182
Payments for capital assets 12 036 - - 12 036 4 460 7 576 37.1% 4 821 4 196
Machinery and equipment 12 036 - - 12 036 4 460 7 576 37.1% 4 792 4 168Intangible assets - - - - - - - 29 28
Payments for financialassets - 9 - 9 9 - 100.0% - -
Total 39 596 (1 087) (292) 38 217 27 880 10 337 73.0% 28 532 27 352
83
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Appropriation StatementFor The Year Ended 31 March 2019
Programme 2: SUSTAINABLE FISCAL RESOURCE MANAGEMENT
2018/19 2017/18
Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Sub programme1. Programme Support/ Office of the DDG 64 256 (1 268) - 62 988 62 670 318 99.5% 60 246 60 2412. Budget Management 25 742 733 - 26 475 26 182 293 98.9% 25 270 24 0963. Economic and Fiscal Policy Oversight 13 477 170 - 13 647 13 136 511 96.3% 14 357 14 3494. Infrastructure Management 13 662 365 - 14 027 12 744 1 283 90.9% 12 949 12 8655. Financial Asset and Liabilities Management 12 823 - - 12 823 11 994 829 93.5% 12 961 12 9606. Public Finance 18 504 - - 18 504 18 404 100 99.5% 16 049 16 047Total for sub programmes 148 464 - - 148 464 145 130 3 334 97.8% 141 832 140 558
Economic classification
Current payments 89 770 - - 89 770 86 532 3 238 96.4% 86 372 85 098Compensation of employees 71 034 - - 71 034 68 154 2 880 95.9% 68 220 66 955
Salaries and wages 62 708 229 - 62 937 60 696 2 241 96.4% 60 621 59 659Social contributions 8 326 (229) - 8 097 7 458 639 92.1% 7 599 7 296
Goods and services 18 736 - - 18 736 18 378 358 98.1% 18 152 18 143Administrative fees 507 306 - 813 808 5 99.4% 451 450Advertising 7 240 1 207 - 8 447 8 446 1 100.0% 7 226 7 225Audit costs: External 731 (1) - 730 511 219 70.0% 450 450Catering: Departmentalactivities 396 (205) - 191 178 13 93.2% 179 178Computer services 450 (428) - 22 22 - 100.0% 28 28Consultants: Business andadvisory services 5 993 845 - 6 838 6 836 2 100.0% 7 330 7 328Contractors 34 34Agency and support/Outsourced services 174 (97) 77 76 1 98.7%Consumable supplies 1 - 1 1 - 100.0%Consumable: Stationery,printing and office supplies 532 (254) - 278 278 - 100.0% 303 303Travel and subsistence 468 (225) - 243 179 64 73.7% 272 270Training and development 753 (671) - 82 81 1 98.8% 749 749Operating payments 1 257 (334) - 923 872 51 94.5% 846 845Venues and facilities 235 (144) - 91 90 1 98.9% 284 283
Transfers and subsidies 58 694 - - 58 694 58 598 96 99.8% 55 460 55 460
Departmental agencies andaccounts 58 544 - - 58 544 58 544 - 100.0% 55 385 55 385
Departmental agencies 58 544 - - 58 544 58 544 100.0% 55 385 55 385Households 150 - - 150 54 96 36.0% 75 75
Social benefits 150 - - 150 54 96 36.0% 75 75Other transfers tohouseholds
Payments for financialassets
Total 148 464 - - 148 464 145 130 3 334 97.8% 141 832 140 558
84
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Appropriation StatementFor The Year Ended 31 March 2019
2.1 PROGRAMME SUPPORT/ OFFICE OF THE DDG
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments 5 562 (1 214) - 4 348 4 126 222 94.9% 4 861 4 856Compensation of employees 3 789 - - 3 789 3 690 99 97.4% 3 502 3 500Goods and services 1 773 (1 214) - 559 436 123 78.0% 1 359 1 356
Transfers and subsidies 58 694 (54) - 58 640 58 544 96 99.8% 55 385 55 385Departmental agencies andaccounts 58 544 - - 58 544 58 544 100.0% 55 385 55 385Households 150 (54) - 96 - 96 - - -
Total 64 256 (1 268) - 62 988 62 670 318 99.5% 60 246 60 241
2.2 BUDGET MANAGEMENT
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 25 742 733 - 26 475 26 182 293 98.9% 25 256 24 082Compensation of employees 16 783 - - 16 783 16 493 290 98.3% 16 814 15 642Goods and services 8 959 733 - 9 692 9 689 3 100.0% 8 442 8 440
Transfers and subsidies 14 14Households 14 14
Total 25 742 733 - 26 475 26 182 293 98.9% 25 270 24 096
2.3 ECONOMIC AND FISCAL POLICY OVERSIGHT
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 13 477 116 - 13 593 13 082 511 96.2% 14 357 14 349Compensation of employees 11 762 - - 11 762 11 254 508 95.7% 11 224 11 218Goods and services 1 715 116 - 1 831 1 828 3 99.8% 3 133 3 131
Transfers and subsidies - 54 - 54 54 - 100.0% - -Households - 54 - 54 54 - 100.0% - -
Total 13 477 170 - 13 647 13 136 511 96.3% 14 357 14 349
85
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Appropriation StatementFor The Year Ended 31 March 2019
2.4 INFRASTRUCTURE MANAGEMENT
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final
appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 13 662 365 - 14 027 12 744 1 283 90.9% 12 888 12 804Compensation of employees 8 174 - - 8 174 6 893 1 281 84.3% 8 228 8 145Goods and services 5 488 365 - 5 853 5 851 2 100.0% 4 660 4 659
Transfers and subsidies - - - - - - - 61 61Households - - - - - - - 61 61
Total 13 662 365 - 14 027 12 744 1 283 90.9% 12 949 12 865
2.5 FINANCIAL ASSET AND LIABILITIES MANAGEMENT
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 12 823 - - 12 823 11 994 829 93.5% 12 961 12 960Compensation of employees 12 092 - - 12 092 11 482 610 95.0% 12 511 12 510Goods and services 731 - - 731 512 219 70.0% 450 450
Total 12 823 - - 12 823 11 994 829 93.5% 12 961 12 960
2.6 PUBLIC FINANCE
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 18 504 - - 18 504 18 404 100 99.5% 16 049 16 047Compensation of employees 18 434 - - 18 434 18 342 92 99.5% 15 941 15 940Goods and services 70 - - 70 62 8 88.6% 108 107
Total 18 504 - - 18 504 18 404 100 99.5% 16 049 16 047
86
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Appropriation StatementFor The Year Ended 31 March 2019
Programme 3: FINANCIAL GOVERNANCE
2018/19 2017/18
Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Sub programme1. Programme Support/ Office of the DDG 3 810 719 - 4 529 4 524 5 99.9% 4 448 4 091
2. Provincial Accounting Services 54 849 (400) 437 54 886 50 995 3 891 92.9% 53 228 52 093
3. Provincial Forensic Audits 51 923 112 - 52 035 51 794 241 99.5% 35 345 30 7294. Transversal Internal Audit and Risk Management 16 459 225 (17) 16 667 16 047 620 96.3% 16 686 15 696
5. Norms and Standards 3 783 19 - 3 802 3 593 209 94.5% 3 959 3 8496. Financial Information Management Systems 33 140 (675) (1 561) 30 904 30 576 328 98.9% 35 374 29 164
Total for sub programmes 163 964 - (1 141) 162 823 157 529 5 294 96.7% 149 040 135 622
Economic classificationCurrent payments 163 864 (21) (1 600) 162 243 156 952 5 291 96.7% 148 723 135 308Compensation of employees 123 290 - - 123 290 119 364 3 926 96.8% 118 651 113 812Salaries and wages 106 401 127 - 106 528 104 047 2 481 97.7% 103 051 99 176Social contributions 16 889 (127) - 16 762 15 317 1 445 91.4% 15 600 14 636
Goods and services 40 574 (21) (1 600) 38 953 37 588 1 365 96.5% 30 072 21 496Administrative fees 13 (8) - 5 4 1 80.0% 10 3Audit costs: External 637 - - 637 421 216 66.1% 597 403Catering: Departmentalactivities 113 46 - 159 157 2 98.7% 156 154Computer services 4 018 4 742 (220) 8 540 8 381 159 98.1% 5 233 4 977Consultants: Business andadvisory services 35 069 (5 426) (1 380) 28 263 27 315 948 96.6% 22 626 15 016Contractors - 74 - 74 74 - 100.0% - -Agency and support/outsourced services - 8 - 8 8 - 100.0% - -
Consumable Supplies - 4 - 4 4 - 100.0% 8 7Consumable: Stationery,printing and office supplies - 11 - 11 10 1 90.9% 3 -Travel and subsistence 381 49 - 430 425 5 98.8% 397 162Training and development 293 14 - 307 307 - 100.0% 735 626Operating payments 50 (17) - 33 - 33 - 207 97Venues and facilities - 482 - 482 482 - 100.0% 100 51
Transfers and subsidies 100 - 459 559 557 2 99.6% 316 314Households 100 - 459 559 557 2 99.6% 316 314
Social benefits 100 - 459 559 557 2 99.6% 316 314Other transfers tohouseholds
Payments for financialassets - 21 - 21 20 1 95.2% 1 -
Total 163 964 - (1 141) 162 823 157 529 5 294 96.7% 149 040 135 622
87
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Appropriation StatementFor The Year Ended 31 March 2019
3.1 PROGRAMME SUPPORT/ OFFICE OF THE DDG
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 3 750 779 - 4 529 4 524 5 99.9% 4 375 4 018Compensation of employees 3 171 134 - 3 305 3 303 2 99.9% 3 369 3 312Goods and services 579 645 - 1 224 1 221 3 99.8% 1 006 706Interest and rent on land - - - - - - - - -
Transfers and subsidies 60 (60) - 73 73Households 60 (60) - 73 73
Total 3 810 719 - 4 529 4 524 5 99.9% 4 448 4 091
3.2 PROVINCIAL ACCOUNTING SERVICES
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final
appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 54 849 (460) - 54 389 50 499 3 890 92.8% 53 132 51 998Compensation of employees 53 967 (460) - 53 507 50 033 3 474 93.5% 51 980 51 115Goods and services 882 - - 882 466 416 52.8% 1 152 883
Transfers and subsidies - 60 437 497 496 1 99.8% 95 95Households - 60 437 497 496 1 99.8% 95 95
Payments for financialassets - - - - - - - - -
Total 54 849 (400) 437 54 886 50 995 3 891 92 9% 53 228 52 093
3.3 PROVINCIAL FORENSIC AUDITS
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 51 896 110 - 52 006 51 766 240 99.5% 35 330 30 715Compensation of employees 20 852 - - 20 852 20 613 239 98.9% 18 033 17 476Goods and services 31 044 110 - 31 154 31 153 1 100.0% 17 297 13 239
Transfers and subsidies 27 - - 27 27 - 100.0% 15 14Households 27 - - 27 27 - 100.0% 15 14
Payments for financialassets - 2 - 2 1 1 50.0% -
Total 51 923 112 - 52 035 51 794 241 99.5% 35 345 30 729
88
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Appropriation StatementFor The Year Ended 31 March 2019
3.4 TRANSVERSAL INTERNAL AUDITS AND RISK MANAGEMENT
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final
appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 16 446 225 (38) 16 633 16 013 620 96.3% 16 573 15 584Compensation of employees 13 952 225 - 14 177 14 176 1 100.0% 14 054 13 141Goods and services 2 494 - (38) 2 456 1 837 619 74.8% 2 519 2 443
Transfers and subsidies 13 - 21 34 34 - 100.0% 113 112Provinces and municipalitiesHouseholds 13 - 21 34 34 - 100.0% 113 112
Total 16 459 225 (17) 16 667 16 047 620 96.3% 16 686 15 696
3.5 NORMS AND STANDARDS
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 3 783 - - 3 783 3 574 209 94.5% 3 959 3 849Compensation of employees 3 783 - - 3 783 3 574 209 94.5% 3 959 3 849
Payments for financialassets - 19 - 19 19 - 100.0% - -
Total 3 783 19 - 3 802 3 593 209 94.5% 3 959 3 849
3.6 FINANCIAL INFORMATION MANAGEMENT SYSTEM
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 33 140 (675) (1 562) 30 903 30 576 327 98.9% 35 354 29 144Compensation of employees 27 565 101 - 27 666 27 665 1 100.0% 27 256 24 919Goods and services 5 575 (776) (1 562) 3 237 2 911 326 89.9% 8 098 4 225
Transfers and subsidies - - 1 1 - 1 - 20 20Households - - 1 1 - 1 - 20 20
Total 33 140 (675) (1 561) 30 904 30 576 328 98.9% 35 374 29 164
89
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Appropriation StatementFor The Year Ended 31 March 2019
Programme 4: PROVINCIAL SUPPLY CHAIN MANAGEMENT
2018/19 2017/18
Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Sub programme1. Programme Support/ Office of the DDG 25 778 12 1 044 26 834 26 333 501 98.1% 26 029 19 1542. SCM Policy, Norms and Standards 17 062 (12) 47 17 097 15 634 1 463 91.4% 15 661 15 6593. Governance, Compliance, Monitoring and Evaluation - - - - - - - - -4. SCM Client Support 37 126 1 511 13 38 650 38 649 1 100.0% 26 573 26 5685. Strategic Procurement 19 235 (1 511) - 17 724 16 954 770 95.7% 15 454 15 453
6. Transversal Contract Management 11 633 - 15 11 648 10 426 1 222 89.5% 19 815 19 814
Total for sub programmes 110 834 - 1 119 111 953 107 996 3 957 96.5% 103 532 96 648
Economic classification
Current payments 100 734 - 1 015 101 749 97 794 3 955 96.1% 93 307 86 427
Compensation of employees 80 414 - - 80 414 76 465 3 949 95.1% 72 546 72 542Salaries and wages 68 693 734 - 69 427 66 176 3 251 95.3% 62 868 62 865Social contributions 11 721 (734) - 10 987 10 289 698 93.6% 9 678 9 677
Goods and services 20 320 - 1 015 21 335 21 329 6 100.0% 20 761 13 885Administrative fees - 13 - 13 12 1 92.3% 14 14Advertising 299 (98) - 201 201 - 100.0% 280 139Catering: Departmentalactivities 112 (30) - 82 81 1 98.8% 122 121Consultants: Business andadvisory services 18 130 1 076 1 015 20 221 20 220 1 100.0% 17 391 12 874Legal Services - 117 - 117 117 - 100.0% 1 200 234Agency and support/outsourced services - 12 - 12 12 - 100.0% - -
Consumable: Stationery,printing and office supplies 4 (2) - 2 1 1 50.0% - -Travel and subsistence 89 (78) - 11 10 1 90.9% 121 75Training and development 1 448 (975) - 473 472 1 99.8% 1 368 383Operating payments 144 45Venues and facilities 238 (35) - 203 203 - 100.0% 121 -
Transfers and subsidies 10 100 - 104 10 204 10 202 2 100.0% 10 215 10 214Non-profit institutions 10 000 - - 10 000 10 000 - 100.0% 10 000 10 000Households 100 - 104 204 202 2 99.0% 215 214
Social benefits 100 - 104 204 202 2 99.0% 215 214Other transfers tohouseholds
Payments for financialassets - - - - - - - 10 7
Total 110 834 - 1 119 111 953 107 996 3 957 96.5% 103 532 96 648
90
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Appropriation StatementFor The Year Ended 31 March 2019
4.1 PROGRAMME SUPPORT/ OFFICE OF THE DDG
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 25 678 12 1 015 26 705 26 204 501 98.1% 25 946 19 071Compensation of employees 5 378 - - 5 378 4 883 495 90.8% 5 257 5 256Goods and services 20 300 12 1 015 21 327 21 321 6 100.0% 20 689 13 815
Transfers and subsidies 100 - 29 129 129 - 100.0% 83 83Households 100 - 29 129 129 - 100.0% 83 83
Total 25 778 12 1 044 26 834 26 333 501 98.1% 26 029 19 154
4.2 SCM POLICY, NORMS AND STANDARD
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 17 062 (12) - 17 050 15 587 1 463 91.4% 15 661 15 659Compensation of employees 17 042 - - 17 042 15 579 1 463 91.4% 15 596 15 595Goods and services 20 (12) - 8 8 - 100.0% 65 64
Transfers and subsidies - - 47 47 47 100.0% - -Households - - 47 47 100.0% - -
Total 17 062 (12) 47 17 097 15 634 1 463 91.4% 15 661 15 659
4.4 SCM CLIENT SUPPORT
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 27 126 1 511 - 28 637 28 637 - 100.0% 26 550 26 549Compensation of employees 27 126 1 511 - 28 637 28 637 - 100.0% 26 544 26 543Goods and services - - - - - - - 6 6
Transfers and subsidies 10 000 - 13 10 013 10 012 1 100.0% 13 12Non-profit institution 10 000 - - 10 000 10 000 100.0% - -Households - - 13 13 12 1 92.3% 13 12
Payments for financialassets - - - - - - - 10 7
Total 37 126 1 511 13 38 650 38 649 1 100.0% 26 573 26 568
91
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Appropriation StatementFor The Year Ended 31 March 2019
4.5 STRATEGIC PROCUREMENT
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 19 235 (1 511) - 17 724 16 954 770 95.7% 15 454 15 453Compensation of employees 19 235 (1 511) - 17 724 16 954 770 95.7% 15 454 15 453Goods and services - - - - - - - - -
Total 19 235 (1 511) - 17 724 16 954 770 95.7% 15 454 15 453
4.6 TRANSVERSAL CONTRACT MANAGEMENT
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 11 633 - - 11 633 10 412 1 221 89.5% 9 696 9 695Compensation of employees 11 633 - - 11 633 10 412 1 221 89.5% 9 695 9 695Goods and services - - - - - - - 1 -
Transfers and subsidies - - 15 15 14 1 93.3% 10 119 10 119Non-profit institutions - - - - - - - 10 000 10 000Households - - 15 15 14 1 93.3% 119 119
Total 11 633 - 15 11 648 10 426 1 222 89.5% 19 815 19 814
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Appropriation StatementFor The Year Ended 31 March 2019
Programme 5: MUNICIPAL FINANCIAL GOVERNANCE
2018/19 2017/18
Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Sub programme1. Programme Support/ Office of the DDG 45 712 - (344) 45 368 44 955 413 99.1% 44 896 43 4712. Local Government Financial Services - -3. Municipal Accounting and Asset Management - -4. Municipal Compliance and Financial Management Support - -
Total for sub programmes 45 712 - (344) 45 368 44 955 413 99.1% 44 896 43 471
Economic classification
Current payments 45 662 (6) (300) 45 356 44 944 412 99.1% 44 853 43 428
Compensation of employees 42 624 - - 42 624 42 250 374 99.1% 41 079 40 307Salaries and wages 39 654 (716) - 38 938 38 565 373 99.0% 36 442 36 439Social contributions 2 970 716 - 3 686 3 685 1 100.0% 4 637 3 868
Goods and services 3 038 (6) (300) 2 732 2 694 38 98.6% 3 774 3 121Administrative fees 5 230 - 235 234 1 99.6% 224 224
Catering: Departmentalactivities 190 36 - 226 225 1 99.6% 202 201Computer services 220 (214) - 6 - 6 - - -
Consultants: Business andadvisory services 600 (287) (300) 13 - 13 - 427 -Legal services 966 966Consumable supplies 2 1
Consumable: Stationery,printing and office supplies 842 (299) - 543 541 2 99.6% 568 493Travel and subsistence 539 - - 539 525 14 97.4% 530 431Training and development 533 248 - 781 781 - 100.0% 660 660Operating payments 55 21 - 76 76 - 100.0% 50 -Venues and facilities 54 259 - 313 312 1 99.7% 145 145
Transfers and subsidies 50 - (44) 6 5 1 83.3% 43 43Households 50 - (44) 6 5 1 83.3% 43 43
Social benefits 50 - (44) 6 5 1 83.3% 43 43
Other transfers tohouseholds -
Payments for financialassets - 6 - 6 6 - 100.0% - -
Total 45 712 - (344) 45 368 44 955 413 99.1% 44 896 43 471
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Appropriation StatementFor The Year Ended 31 March 2019
5.1 PROGRAMME SUPPORT/ OFFICE OF THE DDG
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 45 662 (6) (300) 45 356 44 944 412 99.1% 44 853 43 428Compensation of employees 42 624 - - 42 624 42 250 374 99.1% 41 079 40 307Goods and services 3 038 (6) (300) 2 732 2 694 38 98.6% 3 774 3 131
Transfers and subsidies 50 - (44) 6 5 1 83.3% 43 43Households 50 - (44) 6 5 1 83.3% 43 43
Payments for financialassets - 6 - 6 6 - 100.0% - -
Total 45 712 - (344) 45 368 44 955 413 99.1% 44 896 43 471
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Appropriation StatementFor The Year Ended 31 March 2019
Programme 6: GAUTENG AUDIT SERVICES
2018/19 2017/18
Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Sub programme1. Programme Support/ Office
of the DDG 10 233 - 1 769 12 002 11 465 537 95.5% 10 176 6 9562. Risk and Compliance Audit
Services (Cluster 1, 2, 3) 26 948 6 286 27 240 26 131 1 109 95.9% 23 240 23 2383. Risk and Compliance Audit
Services (Cluster 4, 5, 6) 29 992 (8) 59 30 043 28 018 2 025 93.3% 25 146 25 1434. Performance and Computer
Audit Services 23 881 2 118 24 001 22 915 1 086 95.5% 21 469 21 462
Total for sub programmes 91 054 - 2 232 93 286 88 529 4 757 94. 9% 80 031 76 799
Economic classification
Current payments 90 842 (306) 1 802 92 338 87 583 4 755 94.9% 79 642 76 412
Compensation of employees 82 348 (306) - 82 042 77 290 4 752 94.2% 71 443 71 439Salaries and wages 71 838 (358) - 71 480 67 824 3 656 94.9% 63 310 63 308Social contributions 10 510 52 - 10 562 9 466 1 096 89.6% 8 133 8 131
Goods and services 8 494 - 1 802 10 296 10 293 3 100.0% 8 199 4 973Administrative fees 1 1 1 - 100.0% 4 3Advertising 44 -Catering: Departmentalactivities 10 3 - 13 13 - 100.0% 2 2Computer services 1 291 (1 257) - 34 34 - 100.0% 1 386 1 179Consultants: Business andadvisory services 5 502 1 590 1 753 8 845 8 845 - 100.0% 5 155 2 364Travel and subsistence 290 (44) 49 295 292 3 99.0% 158 146Training and development 820 (127) - 693 693 - 100.0% 775 757Operating payments 317 (7) - 310 310 - 100.0% 425 384Venues and facilities 264 (159) - 105 105 - 100.0% 250 138
Transfers and subsidies 212 306 392 910 908 2 99.8% 389 387Households 212 306 392 910 908 2 99.8% 389 387
Social benefits 212 (134) 112 190 189 1 99.5% 311 309Other transfers tohouseholds 440 280 720 719 1 99.9% 78 78
Payments for financialassets - - 38 38 38 - 100.0% - -
Total 91 054 - 2 232 93 286 88 529 4 757 94.9% 80 031 76 799
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Appropriation StatementFor The Year Ended 31 March 2019
6.1 PROGRAMME SUPPORT/ OFFICE OF THE DDG
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 10 053 (122) 1 753 11 684 11 147 537 95.4% 10 176 6 956Compensation of employees 1 735 (122) - 1 613 1 076 537 66.7% 2 228 2 227Goods and services 8 318 - 1 753 10 071 10 071 - 100.0% 7 948 4 729
Transfers and subsidies 180 122 16 318 318 - 100.0% - -Households 180 122 16 318 318 - 100.0% - -
Total 10 233 - 1 769 12 002 11 465 537 95.5% 10 176 6 596
6.2 RISK AND COMPLIANCE AUDIT SERVICES (CLUSTER 1, 2, 3)
2018/19 2017/1
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 26 936 (178) - 26 758 25 650 1 108 95.9% 23 207 23 205Compensation of employees 26 916 (184) - 26 732 26 625 1 107 95.9% 23 130 23 129Goods and services 20 6 - 26 25 1 96.2% 77 76
Transfers and subsidies 12 184 286 482 481 1 99.8% 33 33Households 12 184 286 482 481 1 99.8% 33 33
Total 26 948 6 286 27 240 26 131 1 109 95.9% 23 240 23 238
6.3 RISK AND COMPLIANCE AUDIT SERVICES (CLUSTER 4, 5, 6)
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 29 972 (8) - 29 964 27 939 2 025 93.2% 24 921 24 919Compensation of employees 29 956 - - 29 956 27 932 2 024 93.2% 24 857 24 856Goods and services 16 (8) - 8 7 1 87.5% 64 63
Transfers and subsidies 20 - 21 41 41 - 100.0% 225 224Households 20 - 21 41 41 - 100.0% 225 224
Payments for financialassets - - 38 38 38 - 100.0% - -
Total 29 992 (8) 59 30 043 28 018 2 025 93.3% 25 146 25 143
6.4 PERFORMANCE AND COMPUTER AUDIT SERVICES
2018/19 2017/18
Economic classification Adjusted Appropriation
Shifting of Funds Virement Final
AppropriationActual
Expenditure VarianceExpenditure as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Current payments 23 881 2 49 23 932 22 847 1 085 95.5% 21 338 21 332Compensation of employees 23 741 - - 23 741 22 657 1 084 95.4% 21 228 21 227Goods and services 140 2 49 191 190 1 99.5% 110 105
Transfers and subsidies - - 69 69 68 1 98.6% 131 130Households - - 69 69 68 1 98.6% 131 130
Total 23 881 2 118 24 001 22 915 1 086 95.5% 21 469 21 462
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Notes to the Appropriation StatementFor the Year ended 31 March 2019
1. Detail of transfers and subsidies as per Appropriation Act (after Virement):
Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-H) to the Annual Financial Statements.
2. Detail of specifically and exclusively appropriated amounts voted (after Virement):
Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.
3. Detail on payments for financial assets
Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual Financial Statements.
4. Explanations of material variances from Amounts Voted (after Virement):
4.1 Per programme Final Appropriation Actual Expenditure Variance Variance as a % of Final Appropriation
R’000 R’000 R’000 %
Administration 143 769 132 194 11 575 8
Sustainable Fiscal ResourceManagement 148 464 145 130 3 334 2
Financial Governance 162 823 157 529 5 294 3
Provincial Supply Chain Management 111 953 107 996 3 957 4
Municipal Financial Governance 45 368 44 955 413 1Gauteng Audit Services 93 286 88 529 4 757 5
TOTAL 705 663 676 333 29 330 4
4.2 Per economic classification Final Appropriation Actual Expenditure Variance Variance as a % of Final Appropriation
R’000 R’000 R’000 %
Current paymentsCompensation of employees 494 077 474 330 19 747 4Goods and services 128 571 126 785 1 786 1Transfers and subsidiesDepartmental agencies and accounts 58 544 58 544 - 0Higher education institutionsNon-profit institutions 10 000 10 000 - 0
Households 2 350 2 131 219 9Payments for capital assetsMachinery and equipment 12 036 4 460 7 576 63Buildings and other fixed structuresPayments for financial assets 85 83 2 2
TOTAL 705 663 676 333 29 330 4
The 4% overall departmental under-spending is attributed to vacancies that are still to be filled. The departmental vacancy rate is at 7%. Furthermore, desktops procured were still to be delivered by end of March 2019. The department has requested a roll-over of unspent funds to 2019/20 in order to cover for their payments.
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Statement of Financial PerformanceFor The Year Ended 31 March 2019
Note 2018/19 2017/18R'000 R'000
REVENUEAnnual appropriation 1 705 663 654 907Departmental revenue 2 854 640 621 440
TOTAL REVENUE 1 560 303 1 276 347
EXPENDITURE
Current expenditure
Compensation of employees 3 474 331 452 209Goods and services 4 126 785 102 133Total current expenditure 601 116 554 342
Transfers and subsidies
Transfers and subsidies 6 70 675 67 413
Total transfers and subsidies 70 675 67 413
Expenditure for capital assets
Tangible assets 7 4 460 4 168Intangible assets 7 - 28Total expenditure for capital assets 4 460 4 196
Payments for financial assets 5 82 8
TOTAL EXPENDITURE 676 333 625 959
SURPLUS FOR THE YEAR 883 970 650 388
Reconciliation of Net Surplus for the year
Voted funds 29 330 28 948
Annual appropriation 29 330 28 948
Departmental revenue 2 854 640 621 440
SURPLUS FOR THE YEAR 883 970 650 388
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Note 2018/19 2017/18R'000 R'000
ASSETS
Current assets 36 203 23 327
Cash and cash equivalents 8 35 232 22 861 Receivables 9 971 466 Non-current assets
Receivables 9 - -
TOTAL ASSETS 36 203 23 327
LIABILITIES
Current liabilities 35 669 23 107
Voted funds to be surrendered to the Revenue Fund 10 29 330 22 508Departmental revenue to be surrendered to the Revenue Fund 11 5 664 315Payables 12 675 284 TOTAL LIABILITIES 35 669 23 107
NET ASSETS 534 220
Represented by:
Recoverable revenue 534 220
TOTAL 534 220
Statement of Financial PositionAs At 31 March 2019
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Statement of Changes in Net AssetsFor the year ended 31 march 2019
Note 2018/19 2017/18R'000 R'000
Recoverable revenue Opening balance 220 232 Transfers: 314 (12) Irrecoverable amounts written off 5.1 (82) (8)
Debts revised - Debts recovered (included in departmental receipts) (462) 753 Debts raised 858 (757)
TOTAL 534 220
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Cash Flow StatementFor The Year Ended 31 March 2019
Note 2018/19 2017/18R'000 R’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts 1 560 295 1 276 252 Annual appropriated funds received 1.1 705 663 654 907 Departmental revenue received 2 961 1 467 Interest received 2.2 853 671 619 878
Net (increase)/decrease in working capital (114) 35Surrendered to Revenue Fund (871 799) (666 173)Current payments (601 116) (554 342)Payments for financial assets (82) (8)Transfers and subsidies paid (70 675) (67 413)Net cash flow available from operating activities 13 16 509 (11 649)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for capital assets 7 (4 460) (4 196)Proceeds from sale of capital assets 2.3 8 95Net cash flows from investing activities (4 452) 4 101)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase/(decrease) in net assets 314 (12)Increase/(decrease) in non-current payablesNet cash flows from financing activities 314 (12)
Net increase/(decrease) in cash and cash equivalents 12 371 (15 762)
Cash and cash equivalents at beginning of period 22 861 38 623Unrealised gains and losses within cash and cash equivalents
Cash and cash equivalents at end of period 14 35 232 22 861
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Accounting PoliciesFor The Year Ended 31 March 2019
Summary of significant accounting policies
The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. Management has concluded that the financial statements present fairly the department’s primary and secondary information. The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation.
Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the financial statements and to comply with the statutory requirements of the Public Finance Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act.
1 Basis of preparation
The financial statements have been prepared in accordance with the Modified Cash Standard. 2 Going concern
The financial statements have been prepared on a going concern basis.3 Presentation currency
Amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.
4 Rounding
Unless otherwise stated financial figures have been rounded to the nearest one thousand Rand (R’000).5 Foreign currency translation
Cash flows arising from foreign currency transactions are translated into South African Rands using the spot exchange rates prevailing at the date of payment / receipt.
6 Comparative information
6.1 Prior period comparative information
Prior period comparative information has been presented in the current year’s financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format of the current year’s financial statements.
6.2 Current year comparison with budget
A comparison between the approved, final budget and actual amounts for each programme and economic classification is included in the appropriation statement.
7 Revenue
7.1 Appropriated funds
Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation).
Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the statement of financial performance on the date the adjustments become effective.
The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognised as a payable / receivable in the statement of financial position.
7.2 Departmental revenue
Departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the relevant revenue fund, unless stated otherwise.
Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the statement of financial position.
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Accounting PoliciesFor The Year Ended 31 March 2019
7.3 Accrued departmental revenue
Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the financial statements when:
• it is probable that the economic benefits or service potential associated with the transaction will flow to the department; and
• the amount of revenue can be measured reliably.
The accrued revenue is measured at the fair value of the consideration receivable.
Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents.
Write-offs are made according to the department’s debt write-off policy
8 Expenditure8.1 Compensation of employees
8.1.1 Salaries and wages
Salaries and wages are recognised in the statement of financial performance on the date of payment.
8.1.2 Social contributions
Social contributions made by the department in respect of current employees are recognised in the statement of financial performance on the date of payment.
Social contributions made by the department in respect of ex-employees are classified as transfers to households in the statement of financial performance on the date of payment.
8.2 Other expenditure
Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of financial performance on the date of payment. The expense is classified as a capital expense if the total consideration paid is more than the capitalisation threshold.
8.3 Accruals and payables not recognised
Accruals and payables not recognised are recorded in the notes to the financial statements at cost at the reporting date.
8.4 Leases
8.4.1 Operating leases
Operating lease payments made during the reporting period are recognised as current expenditure in the statement of financial performance on the date of payment.
The operating lease commitments are recorded in the notes to the financial statements.
9. Cash and cash equivalents
Cash and cash equivalents are stated at cost in the statement of financial position.
Bank overdrafts are shown separately on the face of the statement of financial position as a current liability.
For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.
10. Prepayments and advances
Prepayments and advances are recognised in the statement of financial position when the department receives or disburses the cash.
Prepayments and advances are initially and subsequently measured at cost.
11. Loans and receivables
Loans and receivables are recognised in the statement of financial position at cost plus accrued interest, where interest is charged, less amounts already settled or written-off. Write-offs are made according to the department’s write-off policy.
12. Payables
Payables recognised in the statement of financial position are recognised at cost.
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Accounting PoliciesFor The Year Ended 31 March 2019
13. Capital Assets13.1 Movable capital assets
Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition.
Where the cost of movable capital assets cannot be determined reliably, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R1.
All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.
Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.
Subsequent expenditure that is of a capital nature forms part of the cost of the existing asset when ready for use.
13.2 Intangible assets
Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition.
Internally generated intangible assets are recorded in the notes to the financial statements when the department commences the development phase of the project.
Where the cost of intangible assets cannot be determined reliably, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1.
All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.
Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.
Subsequent expenditure of a capital nature forms part of the cost of the existing asset when ready for use.
14 Provisions and Contingents14.1 Provisions
Provisions are recorded in the notes to the financial statements when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation and a reliable estimate of the obligation can be made. The provision is measured as the best estimate of the funds required to settle the present obligation at the reporting date.
14.2 Contingent liabilities
Contingent liabilities are recorded in the notes to the financial statements when there is a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department or when there is a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably.
14.3 Commitments
Commitments (other than for transfers and subsidies) are recorded at cost in the notes to the financial statements when there is a contractual arrangement or an approval by management in a manner that raises a valid expectation that the department will discharge its responsibilities thereby incurring future expenditure that will result in the outflow of cash.
15 Irregular expenditure
Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the value of the irregular expenditure incurred unless it is impracticable to determine, in which case reasons therefor are provided in the note.
Irregular expenditure is removed from the note when it is either condoned by the relevant authority, transferred to receivables for recovery or not condoned and is not recoverable.
Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Accounting PoliciesFor The Year Ended 31 March 2019
16 Changes in accounting policies, accounting estimates and errors
Changes in accounting policies that are effected by management have been applied retrospectively in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the change in policy. In such instances the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.
Changes in accounting estimates are applied prospectively in accordance with MCS requirements.
Correction of errors is applied retrospectively in the period in which the error has occurred in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the error. In such cases the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.
17 Events after the reporting date
Events after the reporting date that are classified as adjusting events have been accounted for in the financial statements. The events after the reporting date that are classified as non-adjusting events after the reporting date have been disclosed in the notes to the financial statements.
18 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.
19 Related party transactions
A related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party. Related party transactions within the Minister/MEC’s portfolio are recorded in the notes to the financial statements when the transaction is not at arm’s length.
Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the department. The number of individuals and their full compensation is recorded in the notes to the financial statements.
20 Employee benefits
The value of each major class of employee benefit obligation (accruals, payables not recognised and provisions) is disclosed in the Employee benefits note.
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Notes to the Annual Financial StatementsFor The Year Ended 31 March 2019
1. Annual Appropriation
1.1 Annual AppropriationIncluded are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds) and Provincial Departments:
2018/19 2017/18
Final Appropriation Actual Funds Received Final Appropriation Appropriation received
R’000 R’000 R’000 R’000Administration 143 769 143 769 135 576 135 576Sustainable Fiscal ResourceManagement 148 464 148 464 141 832 141 832
Financial Governance 162 823 162 823 149 040 149 040Provincial Supply Chain Management 111 953 111 953 103 532 103 532Municipal Financial Governance 45 368 45 368 44 896 44 896Gauteng Audit Services 93 286 93 286 80 031 80 031
Total 705 663 705 663 654 907 654 907
Note 2018/19 2017/18R'000 R'000
2. Departmental revenue
Sales of goods and services other than capital assets 2.1 646 834Interest 2.2 853 671 619 878Sales of capital assets 2.3 8 95Transactions in financial assets and liabilities 2.4 315 633Departmental revenue collected 854 640 621 440
2.1 Sales of goods and services other than capital assets
Sales of goods and services produced by the department 646 834 Other sales** 646 834Total 646 834
**Other sales include parking bays, sale of tender documents and commission on insurance and garnishee orders
2.2 Interest
Interest 853 671 619 878Total 853 671 619 878
2.3 Sale of capital assets
Tangible assets 8 95 Machinery and equipment 8 95
Total 8 95
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Notes to the Annual Financial StatementsFor The Year Ended 31 March 2019
2018/19 2017/18R'000 R'000
2.4 Transactions in financial assets and liabilities
Other Receipts including Recoverable Revenue** 315 633Total 315 633
**Recovery of previous years’ expenditure.
3. Compensation of employees
3.1 Salaries and Wages
Basic salary 334 009 320 194Performance award 8 749 10 072Service Based 22 662 20 930Compensative/circumstantial 1 270 1 460Periodic payments 6 934 3 492Other non-pensionable allowances 43 752 42 431Total 417 376 398 579
3.2 Social contributions
Employer contributionsPension 42 583 40 112Medical 14 304 13 456Bargaining council 68 62Total 56 955 53 630
Total compensation of employees 474 331 452 209
Average number of employees 819 828
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Notes to the Annual Financial StatementsFor The Year Ended 31 March 2019
Note 2018/19 2017/18R'000 R'000
4. Goods and services
Administrative fees 1 223 948Advertising 9 095 7 589Minor assets 4.1 265 1 202Bursaries (employees) 4 043 4 528Catering 1 057 1 011Communication 3 137 3 024Computer services 4.2 12 541 13 671Consultants: Business and advisory services 4.3 63 308 37 735Legal services 3 030 4 246Contractors 633 777Agency and support / outsourced services 96 -Audit cost – external 4.4 3 373 3 315Fleet services 756 583Consumables 4.5 2 610 2 928Operating leases 6 580 4 957Property payments 4.6 4 231 5 577Travel and subsistence 4.7 2 686 2 188Venues and facilities 1 918 1 217Training and development 4 117 4 352Other operating expenditure 4.8 2 086 2 285Total 126 785 102 133
4.1 Minor assets
Tangible assets 265 1 202 Machinery and equipment 265 1 202Total 265 1 202
4.2 Computer services
SITA computer services 4 015 7 112External computer service providers 8 526 6 559Total 12 541 13 671
4.3 Consultants and Business Advisory
Consultants 61 606 35 625 Forensic investigators 25 762 13 001 Probity Auditors 20 220 12 312 Internal Auditors 8 845 2 364 Research and advisory 6 779 7 948Other (audit committees & Risk) 1 702 2 110Total 63 308 37 735
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Notes to the Annual Financial StatementsFor The Year Ended 31 March 2019
Note 2018/19 2017/18R'000 R'000
4.4 Audit cost – External
Regularity audits 3 373 3 315Total 3 373 3 315
4.5 Consumables
Consumable supplies 728 696 Uniform and clothing 76 217 Household supplies 108 160 Building material and supplies 210 9 Communication accessories 272 10 IT consumables 57 234 Other consumables 5 66Stationery, printing and office supplies 1 882 2 232Total 2 610 2 928
.
4.6 Property payments
Municipal services 4 226 5 516Other 5 61Total 4 231 5 577
4.7 Travel and subsistence
Local 1 766 1 469Foreign 920 719Total 2 686 2 188
4.8 Other operating expenditure
Professional bodies, membership and subscription fees 770 647Resettlement costs 128 329Other (printing and publications) 1 188 1 309Total 2 086 2 285
5. Payments for financial assets
Debts written off 5.1 82 8Total 82 8
109
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Notes to the Annual Financial StatementsFor The Year Ended 31 March 2019
Note 2018/19 2017/18R'000 R'000
5.1 Debts written off
Nature of debts written off
Irrecoverable Debts 82 8Total debt written off 82 8
6. Transfers and subsidies
Departmental agencies and accounts Annex 1B 58 544 55 385Non-profit institutions Annex 1F 10 000 10 000Households Annex 1G 2 131 2 028Total 70 675 67 413
7. Expenditure for capital assets
Tangible assets 4 460 4 168 Machinery and equipment 4 460 4 168
Intangible assets - 28 Software - 28
Total 4 460 4 196
7.1 Analysis of funds utilised to acquire capital assets
Capital assets acquired utilising voted funds
Tangible assets 4 460 4 168 Machinery and equipment 4 460 4 168
Intangible assets - 28 Software - 28
Total ** 4 460 4 196
**Only voted funds were used to acquire capital assets. No aid assistance funding was used to acquire capital assets
8. Cash and cash equivalents
Consolidated Paymaster General Account 35 212 23 281Cash receipts - 9Disbursements - (440)Cash on hand 20 11Total 35 232 22 861
110
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Notes to the Annual Financial StatementsFor The Year Ended 31 March 2019
9. Receivables
2018/19 2017/18
Note Current Non-current Total Current Non-current TotalR’000 R’000 R’000 R’000 R’000 R’000
Claims recoverable 9.1 382 - 382 169 - 169Staff debt 9.2 589 - 589 295 - 295Other debtors 9.3 2 - 2Total 971 - 971 466 - 466
Note 2018/19 2017/18R'000 R'000
9.1 Claims recoverable
National departments 74 167Provincial departments 18 -Public entities 92 2Private entities 198 -Total 382 169
9.2 Staff debt
Debt Account 589 295Total 589 295
9.3 Other debtors
Salary: Finance Other Institution - 2Total - 2
10. Voted funds to be surrendered to the Revenue Fund
Opening balance 22 508 18 761Transfer from statement of financial performance 29 330 28 948Paid during the year (22 508) (25 201)Closing balance 29 330 22 508
11. Departmental revenue to be surrendered to the Revenue Fund
Opening balance 315 19 847Transfer from Statement of Financial Performance 854 640 621 440Paid during the year (849 291) (640 972)Closing balance 5 664 315
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Notes to the Annual Financial StatementsFor The Year Ended 31 March 2019
Note 2018/19 2017/18R'000 R'000
12. Payables – current
Clearing accounts 12.1 - 4Other payables 12.2 675 280Total 675 284
12.1 Clearing accounts
Salary: Recalled salary - 4Total - 4
12.2 Other payables
Salary Income Tax 510 164Salary Tax Debt - 4Salary Pension Fund 1 16Salary GEHS Refund Control 60 86Salary Reversal Control - 10Payable Advance 104 -Total 675 280
13. Net cash flow available from operating activities
Net surplus/(deficit) as per Statement of Financial Performance 883 970 650 388Add back non cash/cash movements not deemed operating activities (867 461) (662 037)(Increase)/decrease in receivables (505) (70)Increase/(decrease) in payables – current 391 105Proceeds from sale of capital assets (8) (95)Expenditure on capital assets 4 460 4 196Surrenders to Revenue Fund (871 799) (666 173)Net cash flow generated by operating activities 16 509 (11 649)
14. Reconciliation of cash and cash equivalents for cash flow purposes
Consolidated Paymaster General account 35 212 23 281Cash receipts - 9Disbursements - (440)Cash on hand 20 11Total 35 232 22 861
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Notes to the Annual Financial StatementsFor The Year Ended 31 March 2019
Note 2018/19 2017/18R'000 R'000
15. Commitments
Current expenditureApproved and contracted 77 195 40 883Approved but not yet contracted - 26 517Total Current expenditure 77 195 67 400
Capital expenditureApproved and contracted 5 875 319Approved but not yet contracted - -Total Capital expenditure 5 875 319
Total Commitments 83 070 67 719
Age analysis of commitments
Not later than 1 year 72 939 60 289Later than 1 year but not longer than 5 years 10 131 7 430Total Commitments 83 070 67 719
16. Accruals and payables not recognised
16.1 Accruals
Listed by economic classification 2018/19 2017/18
30 Days 30+ Days Total TotalR’000 R’000 R’000 R’000
Goods and services 5 572 - 5 572 3 525Total 5 572 - 5 572 3 525
Listed by programme levelAdministration 2 203 2 492Sustainable Fiscal Resource Management 263 192Financial Governance 70 379Provincial Supply Chain Management 2 371 394Municipal Financial Governance 144 68Gauteng Audit Services 521 -Total 5 572 3 525
113
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Notes to the Annual Financial StatementsFor The Year Ended 31 March 2019
16.2 Payables not recognised
Listed by economic classification 2018/19 2017/18
30 Days 30+ Days Total TotalR’000 R’000 R’000 R’000
Goods and services 2 474 - 2 474 386Total 2 474 - 2 474 386
Listed by programme levelAdministration 619 22Sustainable Fiscal Resource Management 555 -Financial Governance 165 145Provincial Supply Chain Management 874 172Municipal Financial Governance 55 33Gauteng Audit Services 206 14Total 2 474 386
Included in the above totals are the following:Confirmed balances with other departments Annex 5 524 1 031Total 524 1 031
17. Employee benefits
Leave entitlement* 16 745 14 058Service bonus 11 724 10 822Performance awards 9 444 8 852Capped leave commitments 7 019 6 942Other** 1 041 4 324Total 45 973 44 998
*Included in the current leave balance is a negative leave balance of R610 thousand which is as a result of resolution 7 of 2000, which allows employees to accrue leave days on the 1st of January irrespective of employment date.
**Included in the balance are payables to officials due to the implementation of the Resolution 3 of 2009 amounting to R847 thousand. Also included is an amount of R 194 thousand for long service awards payable to eligible officials in the ensuing financial year.
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Notes to the Annual Financial StatementsFor The Year Ended 31 March 2019
18. Lease commitments
18.1 Operating leases
2018/19 Buildings and other fixed structures
Machinery and equipment Total
R’000 R’000 R’000
Not later than 1 year 3 242 3 220 6 462Later than 1 year and not later than 5 years 3 786 3 786Total lease commitments 3 242 7 006 10 248
2017/18 Buildings and other fixed structures
Machinery and equipment Total
R’000 R’000 R’000
Not later than 1 year 3 245 3 102 6 347Later than 1 year and not later than 5 years 3 242 5 673 8 915 Total lease commitments 6 487 8 775 15 262
Note 2018/19 2017/18R'000 R'000
19. Accrued departmental revenue
Interest 73 363 73 135Total 73 363 73 135
19.1 Analysis of accrued departmental revenue
Opening balance 73 135 59 682Less: amounts received (73 135) (59 682)Add: amounts recorded 73 363 73 135Closing balance 73 363 73 135
20. Irregular expenditure
20.1 Reconciliation of irregular expenditure
Opening balance - 2 470Add: Irregular expenditure - relating to prior yearAdd: Irregular expenditure - relating to current yearLess: Prior year amounts condoned - (2 470)Less: Current year amounts condonedLess: Amounts not condoned and recoverableLess: Amounts not condoned and not recoverableClosing balance - -
115
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Notes to the Annual Financial StatementsFor The Year Ended 31 March 2019
Note 2018/19 2017/18R'000 R'000
21. Related party transactions
Receivables from related parties 92 2Total 92 2
In kind goods and services providedGPT official seconded at no cost to GIFA
Total
List of Related Parties1. All Gauteng Provincial Government Departments and Entities2. Gauteng Infrastructure Financing Agency (GIFA)
GIFA was established as a government component in terms of section 7 (5) (d) of the Public Service Act, 1994 following the Presidents proclamation no 69 of 2014 (Government Gazette No 38088), within the portfolio of the MEC responsible for finance in the Province with effect from 17 October 2014.
GIFA receives an annual transfer payment from Gauteng Provincial Treasury (GPT), the controlling department of GIFA. This transfer payment is used to cover the operating costs and project preparation facility of the GIFA for the year.
22. Key management personnelNo. of
Individuals
Political office bearers 1 1 997 1 992Officials: Level 15 to 16 4 8 969 11 708 Level 14 21 26 936 25 116Total 37 902 38 816
23. Movable Tangible Capital Assets
MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019
Opening balance
Value adjustments Additions Disposals Closing Balance
R’000 R’000 R’000 R’000 R’000
Machinery and equipment 38 525 - 4 504 (820) 42 209Transport assets 521 - 319 - 840Computer equipment 19 528 - 3 596 (102) 23 022Furniture and office equipment 15 354 - 404 (667) 15 091Other machinery and equipment 3 122 - 185 (51) 3 256
TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 38 525 - 4 504 (820) 42 209
Movable Tangible Capital Assets under investigation
Number Value
R’000
Included in the above total of movable tangible capital assets per the asset register are assets that are under investigation:
Machinery and equipment 29 643
The security services unit is investigating 29 assets valued at R643 thousand reported by officials as lost:
• 14 computers equipment valued at R339 thousand as part of the stolen assets in the department burglar incident• 10 assets lost by different officials in the department• 4 assets valued R51 thousand which are still under investigation as a result of 2017/18 asset verification
1 445 1 3501 445 1 350
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Notes to the Annual Financial StatementsFor The Year Ended 31 March 2019
23.1 Additions
ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019
Cash Non-cash
(Capital Work in Progress
current costs and finance
lease payments)
Received current, not paid
(Paid current year, received prior year)
Total
R’000 R’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT 4 460 44 - - 4 504Transport assets 319 - - - 319Computer equipment 3 552 44 - - 3 596Furniture and office equipment 404 - - - 404Other machinery and equipment 185 - - - 185
TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 4 460 44 - - 4 504
23.2 Disposals
DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019
Sold for cash Non-cash disposal
Total disposals
Cash Received
ActualR’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT 708 112 820 8Computer equipment 77 25 102 5Furniture and office equipment 631 36 667 3Other machinery and equipment - 51 51 -
TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS 708 112 820 8
23.3 Movement for 2017/18
MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2018
Opening balance
Prior period error Additions Disposals Closing Balance
R’000 R’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT 40 636 - 1 806 (3 917) 38 525Transport assets 521 - - - 521Computer equipment 23 100 - 316 (3 888) 19 528Furniture and office equipment 14 916 - 467 (29) 15 354Other machinery and equipment 2 099 - 1 023 - 3 122
TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 40 636 - 1 806 (3 917) 38 525
117
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Notes to the Annual Financial StatementsFor The Year Ended 31 March 2019
23.4 Minor assets
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2019
Specialisedmilitary assets
Intangible assets
Heritage assets
Machinery and
equipmentBiological
assets Total
R’000 R’000 R’000 R’000 R’000 R’000
Opening balance 6 - 7 913 - 7 919Additions - - - 266 - 266Disposals - - - (1 380) - (1 380)
TOTAL MINOR ASSETS - 6 - 6 799 - 6 805
Intangible military assets
Intangible assets
Heritage assets
Machinery and
equipmentBiological
assetsTotal
Number of minor R1 wassets at cost
Number of minor assets at cost - 2 - 3 735 - 3 737
TOTAL NUMBER OF MINOR ASSETS - 2 - 3 735 - 3 737
Minor Capital Assets under investigation
Included in the above total of the minor capital assets perthe asset register are assets that are under investigation
Number Value
R’000
Machinery and equipment 4 9
Included in the above is 4 assets valued at R9 thousand which are still under investigation as a result of 2017/18 asset verification.
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2018
Intangible assets Machinery and equipment Total
R’000 R’000 R’000
Opening balance 6 6 808 6 814Additions - 1 202 1 202Disposals - (97) (97)
6 7 913 7 919
Specialised military assets
Intangible assets
Heritage assets
Machinery and
equipmentBiological
assets Total
R’000 R’000 R’000 R’000 R’000 R’000
Number of R1 minor assets - - - - - -Number of minor assets at cost - 2 - 4 606 - 4 608TOTAL NUMBER OF MINOR ASSETS - 2 - 4 606 - 4 608
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GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Notes to the Annual Financial StatementsFor The Year Ended 31 March 2019
23.5 Movable assets written off
MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2019
Specialised military assets
Intangible assets
Heritage assets
Machinery and
equipmentBiological
assets Total
R’000 R’000 R’000 R’000 R’000 R’000
Assets written off - - - 108 - 108
TOTAL MOVABLE ASSETS WRITTEN OFF - - - 108 - 108
MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2018
Specialised military assets
Intangible assets
Heritage assets
Machinery and
equipmentBiological
assets Total
R’000 R’000 R’000 R’000 R’000 R’000
Assets written off - - - 288 - 288
TOTAL MOVABLE ASSETS WRITTEN OFF - - - 288 - 288
23.6 S42 Movable capital assets
MAJOR ASSETS TO BE TRANSFERRED IN TERMS OFS42 OF THE PFMA - 31 MARCH 2019
Specialised military assets
Intangible assets
Heritage assets
Machinery and
equipmentBiological
assets Total
R’000 R’000 R’000 R’000 R’000 R’000
No. of Assets - - - 7 - 7Value of the assets (R’000) - - - 36 - 36
MINOR ASSETS SUBJECTED TO TRANSFER IN TERMS OF S42 OF THE PFMA - 31 MARCH 2019
Specialised military assets
Intangible assets
Heritage assets
Machinery and
equipmentBiological
assets Total
R’000 R’000 R’000 R’000 R’000 R’000
No. of Assets - - - 375 - 375Value of the assets (R’000) - - - 490 - 490
MAJOR ASSETS SUBJECTED TO TRANSFER IN TERMS OF S42 OF THE PFMA - 31 MARCH 2018
Specialised military assets
Intangible assets
Heritage assets
Machinery and
equipmentBiological
assets Total
R’000 R’000 R’000 R’000 R’000 R’000
No. of Assets - - - 132 - 132Value of the assets (R’000) - - - 1 694 - 1 694
119
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
Notes to the Annual Financial StatementsFor The Year Ended 31 March 2019
MINOR ASSETS SUBJECTED TO TRANSFER IN TERMS OF S42 OF THE PFMA - 31 MARCH 2018
Specialised military assets
Intangible assets
Heritage assets
Machinery and
equipmentBiological
assets Total
R’000 R’000 R’000 R’000 R’000 R’000
No. of Assets - - - 7 - 7Value of the assets (R’000) - - - 11 - 11
24. Intangible Capital Assets
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019
Opening balance
Value adjustments Additions Disposals Closing Balance
R’000 R’000 R’000 R’000 R’000
SOFTWARE 495 - - - 495
TOTAL INTANGIBLE CAPITAL ASSETS 495 - - - 495
24.1 Movement for 2017/18
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2018
Opening balance
Prior period error Additions Disposals Closing Balance
R’000 R’000 R’000 R’000 R’000
SOFTWARE 467 - 28 - 495
TOTAL INTANGIBLE CAPITAL ASSETS 467 - 28 - 495
120
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
ANNEXURE 1BSTATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS
DEPARTMENT/ AGENCY/ ACCOUNT
TRANSFER ALLOCATION TRANSFER 2017/18
AdjustedAppropriation
Roll Overs Adjustments Total
AvailableActual
Transfer
% of Available
funds Transferred
Final Appropriation
R'000 R'000 R'000 R'000 R'000 % R'000
Gauteng Infrastructure Financing Agency 58 544 - - 58 544 58 544 100% 55 385
Total 58 544 - - 58 544 58 544 100% 55 385
ANNEXURE 1FSTATEMENT OF TRANSFERS TO NON-PROFIT INSTITUTIONS
NON-PROFIT INSTITUTIONS
TRANSFER ALLOCATION EXPENDITURE 2017/18
AdjustedAppropriation
Act
Roll Overs Adjustments Total
AvailableActual
Transfer
% of Available
funds Transferred
Final Appropriation
R'000 R'000 R'000 R'000 R'000 % R'000
Transfers
South African Supplier Diversity Council 10 000 - - 10 000 10 000 100% 10 000
Total 10 000 - - 10 000 10 000 100% 10 000
ANNEXURE 1GSTATEMENT OF TRANSFERS TO HOUSEHOLDS
HOUSEHOLDS
TRANSFER ALLOCATION EXPENDITURE 2017/18
AdjustedAppropriation
Act
Roll Overs Adjustments Total
AvailableActual
Transfer
% of Available
funds Transferred
Final Appropriation
R'000 R'000 R'000 R'000 R'000 % R'000
Transfers
Injury on Duty 9 - - 9 9 100 19Leave Gratuity 1 243 - - 1 243 1 110 89 1 008Bursaries (Non- Employees) 104 - 104 93 89 924
Claims against the state 994 - - 994 919 92 77
Total 2 350 - - 2 350 2 131 - 2 028
Unaudited Annexures to the Annual Financial Statements For The Year Ended 31 March 2019
121
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
ANNEXURE 4CLAIMS RECOVERABLE
Government Entity
Confirmed balance outstanding
Unconfirmed balance outstanding Total Cash in transit at year end
2018/19
31/03/2019 31/03/2018 31/03/2019 31/03/2018 31/03/2019 31/03/2018 Receipt date up to six (6)
working days after year end
Amount
R’000 R’000 R’000 R’000 R’000 R’000 R’000
Department
Department of Agriculture 69 - - - 69 - - -
National Treasury 74 - - - 74 - - -
Western Cape Treasury 18 - - - 18 - - -
Department of International Relations - 42 42 - -
National Department of Public Works 61 61 - -
National Department of Labour 64 64
Department of Social Development - 9 9
Other Government Entities
Gauteng Infrastructure Financing Agency 92 2 92 2
TOTAL 253 178 253 178
ANNEXURE 5INTER-GOVERNMENT PAYABLES
Government Entity
Confirmed balance outstanding
Unconfirmed balance outstanding Total Cash in transit at year end
2017/18
31/03/2018 31/03/2017 31/03/2018 31/03/2017 31/03/2018 31/03/2017 Receipt date up to six (6)
working days after year end
Amount
R’000 R’000 R’000 R’000 R’000 R’000 R’000
DEPARTMENTS
Current
Department of E-Government 432 500 432 500
Department of Water and Sanitation - 58 - 58
Department of Rural Development and Land Reform - -
Department of Health - -
Office of the Chief Justice 92 473 92 473
Total 524 1 031 524 1 031
Unaudited Annexures to the Annual Financial StatementsFor The Year Ended 31 March 2019
122
GAUTENG PROVINCIAL TREASURY | ANNUAL REPORT 2018/19
CONTACTS:
Physical Address: 75 Fox Street, Imbumba House,
Johannesburg2107
Postal Address: Private Bag X12,
Marshalltown,Johannesburg,
2107
Switchboard: 011 227 9000
Email address: [email protected]
Website Address:www.gauteng.gov.za
PR335/2019ISBN: 978-0-621-47744-3