Department of Economic Development, Environmental Affairs ... · 2 Department of Economic...

ANNUAL REPORTDepartment of Economic Development, Environmental Affairs & Tourism

Vote 09: Department of Economic Development, Environmental Affairs & Tourism - Province of the Eastern Cape

Department of Economic Development, Environmental Affairs & Tourism - Annual Report 2013/2014 2

PART A: GENERAL INFORMATION 6

1. DEPARTMENT GENERAL INFORMATION 62. LIST OF ABBREVIATIONS/ACRONYMS 73. FOREWORD BY THE MEC 94. REPORT OF THE ACCOUNTING OFFICER 115. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT 176. STRATEGIC OVERVIEW 18 6.1 Vision 18 6.2 Mission 18 6.3 Values 187. LEGISLATIVE AND OTHER MANDATES 188. ORGANISATIONAL STRUCTURE 199. ENTITIES REPORTING TO THE MEC 20

PART B: PERFORMANCE INFORMATION 21

1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES 222. OVERVIEW OF DEPARTMENTAL PERFORMANCE 22 2.1. Service Delivery Environment 22 2.2. Service Delivery Improvement Plan 23 2.3. Batho Pele arrangements with beneficiaries ( Consultation access etc.) 24 2.4. Service delivery information tool 25 2.5. Complaints Mechanism 25 2.6. Organisational Environment 25 2.7. Key Policy Developments and Legislative Changes 263. STRATEGIC OUTCOME ORIENTED GOALS 264. PERFORMANCE INFORMATION BY PROGRAMME 28 4.1. Programme 1: Administration 28 4.2. Programme 2: Economic Development 30 4.3. Programme 3: Environmental Affairs 375. SUMMARY OF FINANCIAL INFORMATION 42 5.1. Transfer Payments to Public Entities 42 5.2. Transfer payments to all organisations other than public entities 436. CONDITIONAL GRANTS 44 6.1. Conditional Grants and earmarked funds paid 447. DONOR FUNDS 44 7.1. Donor funds received 448. CAPITAL INVESTMENTS 44 8.1. Capital investment, maintenance and asset management plan 44



PART C: GOVERNANCE 45

1. INTRODUCTION 462. RISK MANAGEMENT 463. FRAUD AND CORRUPTION 464. MINIMISING CONFLICT OF INTEREST 465. CODE OF CONDUCT 476. HEALTH SAFETY AND ENVIRONMENTAL ISSUES 477. PORTFOLIO COMMITTEES 478. SCOPA RESOLUTIONS 479. PRIOR MODIFICATION TO AUDIT REPORTS 4810. INTERNAL CONTROL UNIT 4911. INTERNAL AUDIT AND AUDIT COMMITTEES 5012. AUDIT COMMITTEE REPORT 50

PART D: HUMAN RESOURCE MANAGEMENT 53

1. LEGISLATURE THAT GOVERN HR MANAGEMENT 542. INTRODUCTION 543. HUMAN RESOURCE OVERSIGHT STATISTICS 54 3.1. Personnel Related Expenditure 54 3.2. Employment and Vacancies 56 3.3. Job Evaluation 58 3.4. Employment Changes 63 3.5. Employment Equity 67 3.6. Performance Rewards 70 3.7. Foreign Workers 72 3.8. Leave Utilisation 72 3.9. HIV/AIDS & Health Promotion Programmes 74 3.10. Labour Relations 76 3.11. Skills Development 77 3.12. Injury on Duty 79 3.13. Utilisation of Consultants 79

PART E: FINANCIAL INFORMATION 81

1. REPORT OF THE ACCOUNTING OFFICER 821.1. General review of the state of financial affairs 82 1.1.1 Important policy decision and strategic issues facing the department 82 1.1.2 Significant events that have taken place during the year 82 1.1.3 Major projects undertaken or completed during the year 841.2 Spending trends per Programme 85



1.3 Services rendered by the department 871.4 Tariff policy 881.5 Free Services 891.6 Inventories 891.7 Capacity constraints 891.8 Utilisation of donor funds 901.9 Trading entities and public entities 901.10 Organisations to whom transfer payments have been made 911.11 Governance structures 941.12 Risk management 941.13 Fraud and corruption 951.14 Minimising conflict of interest 961.15 Code of conduct 961.16 Internal control directorate 961.17 Discontinued activities/activities to be discontinued 961.18 New/proposed activities 971.19 Asset management 971.20 Inventories 971.21 Events after the reporting date 971.22 Information on predetermined objectives 971.23 SCOPA resolutions 971.24 Prior modifications to audit reports 971.25 Interim Financial Statements 991.26 Other 991.27 Approval 992. ACCOUNTING OFFICER’S STATEMENT OF RESPONSIBILITY FOR ANNUAL FINANCIAL STATEMENTS 1003. REPORT OF THE AUDITOR GENERAL 1014. ANNUAL FINANCIAL STATEMENTS 105 a. Appropriation Statement 106 b. Statement of Financial Performance 123 c. Statement of Financial Position 124 d. Statement of Changes in Net Assets 125 e. Statement of Cash Flows 126 f. Accounting Policies 127 g. Notes to the Annual Financial Statements 132 h. Unaudited Annexure to the Annual Financial Statements 164



1. DEPARTMENT GENERAL INFORMATION

PHYSICAL ADDRESS:

Hockley Hill, Hockley CloseKing William’s TownPrivate Bag X0054BhishoSouth Africa5650

POSTAL ADDRESS:

Private Bag X0054King William’s Town5605

TELEPHONE NUMBER/S: 027 043 605 7022

FAX NUMBER: 027 043 605 7303

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS: www.dedea.gov.za



2. LIST OF ABBREVIATIONS/ACRONYMS

AGSA Auditor General of South Africa AIDS Acquired Immune Deficiency Syndrome BBBEE Broad Based Black Economic EmpowermentCFO Chief Financial OfficerCOBIT Control Objectives for Information and Related TechnologyCOE Compensation of EmployeesCOO Chief Operations OfficerCOP 17 Conference of the Parties 17DBSA Development Bank of South AfricaDEDEAT Department of Economic Development, Environmental Affairs and TourismDOC Department of CommunicationDORA Division of Revenue Act DPSA Department of Public ServiceDTI Department of Trade and IndustryEAP Employee Awareness Programme EC Eastern CapeECDC Eastern Cape Development CorporationECGBB Eastern Cape Gambling and Betting BoardECITI Eastern Cape Information and Technology InitiativeECLB Eastern Cape Liquor ECPTA Eastern Cape Parks and Tourism AgencyEIA Environmental Impact Assessment ELIDZ East London Industrial Development ZoneEU European UnionGIS Geographic Information SystemGIZ German Corporation for Technical Co-operation GMC Greenest Municipality CompetitionHDI Historically Disadvantage Individuals HIV Human Immune VirusHOD Head of DepartmentHR Human ResourcesHRA Health Risk AssessmentHRD Human Resource Development StrategyICT Information and Communication TechnologyIDP Integrated Development PlanIGR Intergovernmental RelationsIMST Information Management System Technology IOD Injury on DutyJG Joe GqabiLM Lundini MunicipalityLMRU Labour Market Research UnitLRED Local and Regional Economic DevelopmentM&E Monitoring and EvaluationMDA Manufacturing Development Act



MEC Member of Executive CouncilMPS Masters Systems PlanMTEC Medium Term Expenditure Committee MTEF Medium Term Expenditure FrameworkNACA National Association of Clean AirNAM Non-Automotive ManufacturingNEAS National Environmental Assessment ServicesNEHAWU National Education Health and Workers UnionNGO Non-Governmental OrganisationNYDA National Youth Development AgencyOTP Office of the PremierPALAMA Public Administration Leadership and Management AcademyPDP Personal Development PlanPFMA Public Finance Management ActPFMA Public Finance Management ActPGDP Provincial Growth and Development PlanPIDS Provincial Industrial Development Strategy PILIR Policy on Incapacity Leave and Ill health retirementPMDS Performance Management Development ServicePMER Performance Monitoring, Evaluation and Reporting PPP Private Public PartnershipSARS South African Revenue ServicesSCM Supply Chain ManagementSDIP Service Delivery Improvement PlanSEDA Small Enterprise Development Agency SERO Socio Economic Review and OutlookSIP Strategic Infrastructure ProgrammeSITA State Information Technology AgencySLA Service Level AgreementSMME Small Medium and Micro EnterprisesSMS Senior Management ServicesSPU Special Project UnitSSA State Security Agency TB Tuberculosis DTI Department of Trade and IndustryTIA Technology Innovation AgencyTOPS Trade or Protected Species RegulationTR Treasury Regulations



3. FOREWORD BY THE MEC

The 2013/14 policy speech, delivered by my predecessor, Hon. Mcebisi Jonas, outlined the Department’s intention to deliver on a number of priority focal areas. As a department we take this opportunity, through this annual performance report, to reflect on some of the progress achieved against the priorities identified and planned performance areas.

During the past year the department increased its efforts in striving towards its goal of sustainable economic development. Efforts on major projects started to bear fruit as the benefits of strong partnerships that had been cultivated in the last five years were implemented. I proudly name a few:

(a) The ECDC, ELIDZ and CDC continue to be the main contributors of investment and job creation in the province. Over R600 million was invested by the Province into the two IDZs between 2009 and 2013. In the last term these three entities were able to attract over 80 investors in the province with an investment value of over R9 billion and create in excess of 60,000 job opportunities.

(b) Approximately R650 million was disbursed by the ECDC to SMMEs over the past five years with over 1,000 SMMEs benefitting from the SMME financing and support programmes. Between 2009 and 2013 over 520 cooperatives were supported.

(c) The ELIDZ Science and Technology Park (STP) has successfully established the first ever global open innovation platform in the Eastern Cape. This platform allows innovators in the Eastern Cape to access global market and innovation opportunities, essentially reducing barriers to entering the global market.

(d) Through lobbying national government and state owned companies, we have attracted investment in various infrastructure development projects. These projects, involving port expansion, electrification, roads and ICT, amongst others, account for over R30 billion in public sector investment in the province over the next 10 to 20 years.

(e) Despite the poaching incidences recorded on the C.I.T.E.S. in the country and the province, The department, in its conservation areas, has not experienced any incident for the 3rd year in a row. This is a phenomenal achievement if the limited human and financial resources available are taken into account and a fitting salute to the men and women who guard and protect our heritage and environmental assets.

(f ) The department, through the ECPTA, remains an implementing partner of the National Department of Environment Affairs’ social responsibility and EPWP programmes. More than 1,000 jobs have been created in the past year and over 3,000 since the inception of the programme.

(g) The conservation estate in the Province was enhanced with the addition of protected areas in Bavianskloof and the Kwelera Botanical garden. A total of 46 000 hectares were added to the provincial land under conservation.

(h) The Department has performed well on the processing of Environmental Impact Assessments with no backlogs recorded. The Department is a country leader in turnaround times being less than those required by legislation. This dedication helped to unlock many infrastructure and other economic development projects.



Focused effort by the department in the renewable energy sector continues to bear fruit. The Province has secured in excess of R20 billion worth of utility scale renewable energy facilities, with a minimum of two more bidding rounds to come in the near term, and continuing further until 2030. The Province has secured a R3.5 Billion gas turbine and this 335MW open cycle gas turbine is in advanced stages of construction, currently employing 675 people. Once it has access to natural gas, this will be converted into a 1000MW combined cycle turbine. 1000 MW represents 60% of the entire provincial electricity demand. The province has also attracted well over R1 Billion in energy component manufacturing facilities in both IDZs, while other manufacturing facilities have been established outside the IDZs The Province is on the verge of the construction of the R2.5 Billion Cradock Biofuel Facility, and the province has also been earmarked for the construction of the Nuclear 1 facility with an estimated construction value of R418 billion. Significant momentum has been gained in regard to the Shale Gas play. If the gas exploitation does take place, the industry returns will be in the order of trillions of Rands. With regards to offshore oil and gas exploration, every metre of the provincial coastline is under application for offshore oil and gas exploration licenses. In absolute terms the department only achieved 41 of its 75 (54.6%) performance targets for the year, however, when considering the relative performance of the department (in other words the extent to which progress was made in the achievement of a target), it had an average achievement rate of 107 percent. This means that in the majority of performance targets the department made substantial progress towards achievement of the target. This is commendable.

While much has been achieved, much still needs to be done. As a department we affirm our commitment to leading the Province to a sustainable, low-carbon economy that can create more and better jobs, particularly for young people.

I would like to take this opportunity to express my sincere thanks to all the staff of the department for their continued hard work and support.

_________________Mr Sakhumzi SomyoMEC of the Department of Economic Development, Environmental Affairs and Tourism31 August 2014



I am pleased to note that the Department has increased its efforts towards the realisation of sustainable economic development. Efforts on major projects started to bear fruit as the benefits of strong partnerships that have been cultivated in the last five years were implemented. The following thematic performance can be attributed to the teamwork of the Department and its partners:

4. REPORT OF THE ACCOUNTING OFFICER

Infrastructure and Special Economic Zones

Attention was paid towards the development of the existing IDZs that the Department continued to fund. In addition, the Department contributed to the shaping of the Special Economic Zones which will be critical in the development of the Wild Coast Development Zone. A team was appointed to conduct feasibility studies for the proposed SEZ zones in the Province.

Both the East London Industrial Development Zone (ELIDZ) and COEGA have attracted 14 investors worth more than R2.5 billion during the year. The ELIDZ supported three innovative prototypes during the reporting period. Job creation continued to be a key focus of the Department. Coega, ELIDZ and the Eastern Cape Development Corporation (ECDC) created 23 457 jobs compared to the 21 306 jobs that were planned in 2013/14.

Enterprise Development

The Department provided co-operative enterprises in Buffalo City Metro and the Chris Hani and Alfred Nzo Municipalities with information on available opportunities from public sector institutions for support of co-operatives, as well the pertinent information on how to expand their businesses. The intervention assisted in addressing the co-operative enterprises that required more information to ensure that they comply with the gazetted regulations for co-operatives as well as the co-operatives legislation of South Africa.

The ECDC has funded Small Medium and Micro Enterprises (SMMEs) to the value of R650 million over the past five (5) years. A total of 91 co-operatives were developed while 272 SMME’s were financed and provided with pre- and post-finance support in areas such as business management, marketing and bookkeeping. The Local and Regional Economic Development Fund (LRED) received more than 250 proposals from all six (6) district municipalities, resulting in the recommendation of 41 proposals for approval, of which 14 were supported.

In June 2013, the Department entered into a collaboration agreement with the Small Enterprise Development Agency (SEDA) for the purpose of developing the business initiative of entrepreneurs in the Eastern Cape Province. Both parties worked together in promoting the establishment and development of local and regional economic development partnership in the Eastern Cape Province and provided skills development to entrepreneurs.

Trade and Sector Development

The Green Skills Forum was active during the year with sessions held in places such as the Nelson Mandela Bay Science and Technology Centre. This was intended for various stakeholders with representatives from national, provincial and local spheres of government, universities, Further Education and Training Colleges (FETs), Sector Education Training Authorities (SETAS), private skills institutions, industry sectors and state-owned-entities participating. As part of the German Corporation for Technical Co-operation (GIZ) Green Skills Partnership, a green skills stand was provided at the Joe Gqabi career expo in Aliwal North in June 2013. DEDEAT provided a workshop to the Amathole District Municipality to assist with the development of business plans for the development of their district-wide renewable energy and greenhouse gas emission assessment. Other sustainable energy consultative meetings were held with the Cacadu District Municipality. The Eastern Cape energy efficiency conference (under the auspices of the South African Association for Energy Efficiency) was hosted in May 2013.

“

“



Non-automotive manufacturing and automotive manufacturing stakeholder engagements were held for information sharing and review of final draft reports. The Buy Eastern Cape baseline study was finalised during the reporting period. Stakeholder engagements and feasibility studies are on-going in relation to the tomatoe value chain and other agro-business opportunities.

Regulatory Services

A number of business development barriers were identified, including the absence of special provisions for promotion of products manufactured in the Eastern Cape for local consumptions, possible contravention of the competition laws and the possibility of uncompetitive pricing should a preferential procurement process be an option under the Buy Eastern Cape campaign.

Both the Eastern Cape Gambling and Betting Board (ECGBB) and Eastern Cape Liquor Board (ECLB) which are undergoing a review process were submitted to the Legislature for further consultations. A seminar on the liquor policy was hosted while the proposed Gaming Bill was gazetted in the government printers for public comment. Submissions were also made to the Department of Trade and Industry I on the proposed Business Licencing Bill which proposes that this function be assigned to the Department of Local Government and Traditional Affairs or Co-operative Governance and Traditional Affairs (COGTA).

Information was provided to the public throughout the Province in relation to basic consumer rights as contained in the Consumer Protection Act. A total of 77 workshops were held at various locations throughout the Eastern Cape Province during the year. A total of 681 complaints were received from consumers while 920 complaints were resolved, closed or referred to other regulatory bodies with jurisdiction to deal with the specific type of complaints.

The ECLB licenced 8550 liquor outlets during the year 2013/14. The ECGBB issued 13 gambling and betting licences. The Zone 4 casino licence remains outstanding due to legal issues. Gambling and betting operations yielded R124 million in revenue for the ECGBB, an amount that was deposited into the Provincial revenue fund. Public education campaigns on illegal and responsible gambling were conducted in Queenstown, King Williams Town and Mdantsane areas.

Research and Planning

The Eastern Cape public sector research portal was initiated in order to centralise all economic development research information/studies that are taking place within the Province. Research reports submitted by the ECDC, ELIDZ and COEGA were coded for loading onto the portal when complete. Officials of the Department were trained on STATA, a statistical software package that enables manipulation, analysis and presentation of data. This software will be utilised for research purposes. The Department produced the Socio Economic Review and Outlook (SERO) document which is key for planning throughout the Province. The Department partnered with the Nelson Mandela Metropolitan University (NMMU) to conduct a shale gas study in the Karoo. The information will provide the critical baseline information necessary for monitoring and control when shale gas exploration and mining commences.

The Buy Eastern Cape Baseline study was completed. It will provide an overview of current patterns of public expenditure by provincial departments on which products, in which sector and by geographical region.

Partnerships

Collaborative work with Transnet continued with a strategic planning forum meeting being convened June 2013. However, there are still gaps with respect to reporting on jobs created, enterprise development opportunities, supplier development programmes, etc.

Four (4) partnerships were secured for the following events: Grahamstown National Arts Festival, Kirkwood Wildsfees, Hogsback Christmas in July and Wildcoast Jikeleza. These events attracted about 267 400 people (except the Wild Coast Jikeleza) exceeding the target of 100 000 for the reporting period.

The Department mobilised R51 million worth of resources through the resource mobilisation programme. The resources are used to compliment government funding for key projects.

Tourism Development

Through the tourism programme, the Eastern Cape Parks and Tourism Agency (ECPTA) together with other partners, successfully hosted the SpecSavers Ironman South Africa triathlon competition in April 2013 in Nelson Mandela Bay. The



Eastern Cape Province together with the event organisers World Endurance Africa Holdings, has been offered an opportunity to present the current event as the Ironman African Championships, making it one of the “Big 5” Ironman Championships globally. The event was a resounding success attracting over 75 000 spectators and 1786 athletes. Over 90% of the service providers employed during the SpecSavers event were local. The tourism product database and geo-spatial framework, in collaboration with the Economic Planning Unit, were in the process of finalisation during the year. The database will ensure consistent and accurate supply of tourism product information from all spheres of government. The total number of registered products on the ECPTA database was lower than projected at 3230 products. This is attributed to the discontinuation of registration of new products due to the upgrading of the ECPTA website and changes in contact details without notification to the ECPTA.

The National Tourism Careers Expo (NTCE) was successfully hosted in September 2013 at the East London International Convention Centre with more than 7 500 learners in attendance.

In February 2014, the Africa Open Golf Challenge was successfully hosted with part sponsorship by the ECPTA. The event impacted significantly in terms of sports tourism promotion and contribution to the local economy. The Isingqisethu Wild Coast Cultural Festival in Port St Johns, an exploration and exposition of the indigenous knowledge systems and the rich cultural diversity that is inherent to the Eastern Cape, was successfully hosted.

Environmental Management

The Department reviewed 38 out of 45 Integrated Development Plans (IDPs) for environmental content during the first quarter of the year. The general picture is that of dysfunctional environmental functions in municipalities.

The pro-active measures and constant engagement with rhino owners and enforcement agencies has resulted in very minimal poaching incidents in the Province.

The Environmental Impact Management Unit was efficient in processing of Environmental Impact Assessment (EIA) applications. During the year, 157 applications were finalised within time-frames, translating into a 121% success rate. The average turnaround time for Basic Assessment applications was 23 days [the legislated timeline is 30 days] and for Scoping and EIA applications also 23 days [the legislated timeline is 45 days].

Four (4) waste license applications, including the Graaff Reinet landfill closure licence, waste tyre recycling project and two wastewater treatment works, were processed during the year. The waste tyre recycling project is particularly exciting as it offers a sustainable solution to the millions of waste tyresbeing disposed of on refuse sites. This opportunity will create valuable job opportunities while recycling these tyres into useful materials.

The Department is participating in a nationally run project that targets the retrofitting of municipal and provincial buildings in order to improve their energy efficiency. The project is called the Vertically Integrated Nationally Appropriate Mitigation Actions (VINAMA) and is being funded by GIZ, on behalf of the German Federal Ministry for Environment, Agriculture and Nuclear Safety. Pilot projects have been selected in Nelson Mandela Bay Municipality (NMBM), Cacadu and Chris Hani District Municipalities. A number of provincial buildings were accessed as suitable properties to pilot the project.

Buffalo City Metropolitan Municipality has endorsed the development and finalisation of the Nahoon Estuarine Management Plan. A total of 99 compliance monitoring Inspections were conducted on various premises during the reporting year.

A total of 25 capacity building activities were held throughout the Province covering the following topics: international biodiversity day; world environment day, alien and invasive flora species; environmental career expo; and basic human needs and infrastructure services. In an attempt to build the capacity of the municipalities to fulfil their sustainable development responsibility, the DEDEAT organised sessions to address the challenges experienced with regard to compliance with environmental requirements of developments.

The Department hosted a Provincial Recycling Indaba at the East London International Convention Centre (ELICC) in January 2014 with the theme “Don’t Waste, Recycle”.. The Indaba provided a platform for all key stakeholders to discuss and agree on a provincial trajectory to stimulate an appropriate and meaningful recycling culture for the Province.



Overview of the Financial Results of the Department:Departmental Receipts

Programme Expenditure:

Programmes Final Appropriation Actual Expenditure Variance Expenditure as % of

Final Appropriation

R’000 R’000 R’000 %

Administration

Current payments 183 723 168 813 14 910 91.9%

Transfers and subsidies 1 163 1 095 68 94.2%

Payment for capital assets 20 903 14 882 6 021 71.2%

Payment of financial assets - 351 -351 -

Total 205 789 185 141 20 648 89.9%

Economic Development



Payment for capital assets 10 8 2 80.0%

Payment of financial assets -

Total 887 573 881 037 6 536 84.69%

Environmental Affairs



Payment for capital assets - - -

Payment of financial assets - - -

Total 293 113 285 986 7 127 97.6%

Subtotal 1 386 475 1 352 164 34 311 97.5%

Statutory Appropriation

Current payments 1,652 1,652 -

Transfers and subsidies - - -

Payment for capital assets - - -

Departmental receipts 2013/2014 2012/2013

Estimate Actual Amount Collected

(Over) / Under Collection Estimate Actual Amount

Collected(Over) / Under

CollectionR'000 R'000 R'000 R'000 R'000 R'000

Tax Receipts 125 073 123 484 1 589 117 993 122 525 -4 532

Sale of goods and services other than capital assets

1 060 802 248 1 000 763 237

Transfers received - - - - - -

Fines, penalties and forfeits - 818 -818 - 1 155 -1 155

Interest, divedends and rent on land

377 331 46 356 475 -119

Sale of capital assets - - - -

Financial transactions and liabilities

23 431 -408 21 92393 -92 372

Total 126 533 125 866 657 119 370 217 311 -97 703



Programmes Final Appropriation Actual Expenditure Variance Expenditure as % of

Final Appropriation

R’000 R’000 R’000 %

Payment of financial assets - - -

Total 1 388 127 1 353 818 34 311 97.5%

Reasons for Under-Spending

The Department of Economic Development, Environmental Affairs and Tourism under-spent by 2.5%.

(a) Compensation of Employees

The Department had anticipated that the restructuring process would be finalised in the 2013/14 financial year. This resulted in a delay in the filling of a number of critical posts which were later approved as contract posts additional to the establishment.

(b) Goods and Services

The under-spending in goods and services is as a result of the following factors;

• The delay in the procurement of services for projects that were budgeted for in the 2013/14 financial year as some of these projects started late and will spill over in the 2014/15 financial year. These include the gazetting for Eastern Cape coastal management program, Nelson Mandela Bay Municipality coastal set back lines public participation process, finalisation of the Service Level Agreement for the Maloti Drakensburg Trans frontier programme.

• Late receipts of invoices from service providers: a number of these invoices had to be returned back to the service providers. Inconsistences were identified with the orders in terms of the recorded amounts. These queries contributed to the recorded underpayment.

(c) Payment of Capital Assets

• Under-spending of payment of capital assets is due to ineffective budget execution. Under expenditure is also due to the non-procurement of motor bikes for the green scorpions as well as the finance leases which were overstated as the department anticipated additional staff for lease of equipment and additional fleet.

Actions Taken or Planned to Avoid Recurrence

The Supply Chain Management Unit (SCM) has scheduled all procurement in line with the different programmes’ approved procurement plans. The submission of annual terms of reference has been scheduled to be on or before the end of May 2014 in order to plan accordingly and avoid delays in the procurement of services.

Virements/Rollovers

The virements which were approved by the Accounting Officer and the Provincial Treasury were copied in the correspondence in line with the regulations and the preparation of the annual financial statements (AFS).

Reasons for the Virements/Shifting

The appropriated budget for Local and Regional Economic Development (LRED) in the 2013/14 financial year was R36,541 million. An amount of R9,167 million was shifted to the ECDC for allocation to the Automotive Industry Development Centre (AIDC) projects to boost automotive industry development support in the Eastern Cape Province.The Administration programme has experienced budgetary constraints with regard to leave gratuities as the budget was based on trends/estimates and not actual figures. However a virement was approved for R49,000 within transfer payments (Household) from programme two to programme one to defray excess expenditure.



Future plans of the DepartmentThe Department will continue to implement the key programmes that were started during the last five years.

Discontinued activities/activities to be discontinuedNo programmes or activities were discontinued and there is no intention to discontinue any services.

New or proposed activitiesThere are no new proposed activities. The Department will pursue opportunities through the blue economy strategy which is being finalised at national level. In addition, attention will be focused on the Special Economic Zones (SEZ) and agro-processing.

Supply chain managementDuring the year the Department experienced capacity constraints in the Financial Management division, particularly in the SCM area. These constraints were also prevalent in the 2012/13 financial year and resulted in internal control deficiencies which were reflected in the audit report for that year. In order to address the constraints, the Department has appointed a senior manager for supply chain and, at the same time, procured support from an accounting firm. The service provider is assisting by setting up SCM processes and controls, reviewing and updating SCM policies and training. While the constraints in the SCM unit did not adversely impact on service delivery, the improved capacity will, besides addressing internal control deficiencies, allow for quicker turnaround times in procurement and logistics.

Gifts and Donations received in kind from non-related partiesIn 2012 DEDEAT and GIZ entered into two co-operation agreements for technical support, namely: Support to DEDEAT with regard to skills for green jobs; and support to DEDEAT under the South African German Energy Programme. The technical advisor joined the Department in 2013 but, to date, it has not been the policy of GIZ to disclose the financial value of its support to the DEDEAT. The value of the support cannot be quantified and is a donation in kind.

Events after the reporting date

A new MEC was appointed after the general elections that took place in May 2014. The process to transfer the shares held by the ECDC in the ELIDZ had begun but could not be finalised by year end.As both of these events took place after the reporting date, these are non-adjusting events and disclosure has been made thereof in the financial statements..

In summary, there has been noticeable improvement in the systems and tools at DEDEAT’s disposal. There is now increased DEDEAT group synergy and cluster support in all its key initiatives. The governance environment at public entity and department levels has also allowed the Department to function at an improved level. There are also improvements recorded in accountability of the work of the Department. Major stakeholders have been engaged throughout the year thus contributing to the performance of the Department. I would like to acknowledge the MEC as well as the management and staff of the Department for providing planning and implementation support throughout the year.

_________________Mr B. Gxilishe Accounting OfficerDepartment of Economic Development, Environmental Affairs and Tourism31 May 2014



5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT

To the best of my knowledge and belief, I confirm the following:

All information and amounts disclosed in the annual report is consistent with the annual financial statements audited by the Auditor General.

The annual report is complete, accurate and is free of any omissions.

The annual report has been prepared in accordance with the guidelines on annual reports 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 epartment for the financial year ended 31 March 2014.

Yours faithfully

___________________ Mr B. Gxilishe Accounting OfficerDepartment of Economic Development, Environmental Affairs and Tourism31 May 2014



6. STRATEGIC OVERVIEW

6.1 Vision

DEDEAT’s vision is of a Province where economic growth and sound environmental management underpin sustainable development.

6.2 Mission

To lead economic growth development and environmental management in the Eastern Cape.

6.3 Values

Leadership: We accept responsibility to guide and direct the investment of the Eastern Cape towards a Green Economy

Integrity: We adhere to high ethical and professional standards

Flexibility: The Department undertakes to ensure that it is able to respond appropriately and timeously to changed or changing circumstances.

Teamwork: We seek to honour our commitments through co-operative effort.

7. LEGISLATIVE AND OTHER MANDATESThe key mandates of DEDEAT are derived from Schedules 4 and 5 of the Constitution and a number of Acts have been promulgated to further support the Department’s constitutional mandate. These include, among others: the Eastern Cape Development Corporation Act (of 1997); the Co-operatives Act (of 2005); the Co-operatives Bank Act (of 2007); the Eastern Cape Unfair Business Act (of 1998); the Consumer Protection Act (of 2008); the National Environmental Management Act (of 1998); the Environment Conservation Act (of 1989); the National Environmental Management: Biodiversity Act (of 2004); the Nature and the Environmental Conservation Ordinance (of 1974); the National Environmental Management - Protected Areas Act (of 2003); the Sea Shore Act; the Environmental Conservation Decree (Former Transkei); the Nature Conservation Act (Former Ciskei); the Atmospheric Pollution Prevention Act; and the Problem Animal Control Ordinance (of 1957).

The mandate of the Department has been enhanced by the twelve key outcomes identified and agreed to by the National Cabinet in 2010. The Department had to adjust its strategic plan to demonstrate alignment with outcomes 4, 6, 10 and 12 which are outlined below:

• Outcome 4: Decent employment through inclusive economic growth. Under this outcome, the following policies and strategies are used to drive DEDEAT programmes: Industrial Policy Action

Plan (IPAP 3); National Development Plan; New Growth Path; National LED Framework; Provincial Growth and Development Plan; Job Fund Strategy; Provincial Industrial Development Strategy (PIDS); Strategic Integrated Project (SIP3).

• Outcome 6: An efficient, competitive and responsive economic infrastructure Network. This is done through the Industrial Development Zone (IDZ) programmes at Coega and ELIDZ

• Outcome 10: Environmental assets and natural resources that are well protected and continually enhanced. This is done through the Department and the ECPTA.

• Outcome 12: An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship.

This is done through various programmes of the Department and public entities such as consumer awareness training, and environmental awareness training.



MEC

: Sak

hu

mzi

So

myo

Hea

d of

Dep

artm

ent

Head of Department

MEC

Office of the

Office of the

SM: Strategic Planning

SM: HRM & practices

SM: Governance & Business Reg.

SM: Financial Management

DGITO

SM: Organisational Development

SM: Consumer Affairs

SM: SCM (Vacant)

SM: Risk Management

GM: Strategy & Information Management

GM:Corporate Services

Chief Financial Officer

SM: Enterprise Development

Policy Coordinating & Environmental Planning

SM: Trade & Industry Development

SM: Compliance and Enforcement

Business Regulation and Governance

SM: Environmental Quality Management

SM: Economic Planning

SM: Biodiversity Management

GM: PEO & IGR

SM: Tourism

SM: Environmental Empowerment

Services

Chief Opperations Officer

GM:Economic Development

GM: Environmental Affairs



9. ENTITIES REPORTING TO THE MECThe following entities report to the MEC of Economic Development, Environmental Affairs and Tourism:

Name of Entity Legislative Mandate Financial Relationship Nature of Operations

Eastern Cape Development Corporation

To plan, finance, co-ordinate, market, promote and implement the development of the Province and all its people in the fields of industry, commerce, agriculture, transport and finance in line with the ECDC Act (1997)

Main appropriationR188,404

Adjusted budgetR 497944

Provides short-term and long-term development finance primarily to previously disadvantaged entrepreneursProvides non-financial support services to facilitate enterprise development, promote trade and investment Manages investments in the form of shares on behalf of the state as well as other assets

East London Industrial Development Zone

To pursue the aims and objectives of the IDZ Programme, as set out in the IDZ Regulations of the Manufacturing Development Act (MDA), Act.187 of 1993


Adjusted budgetR114,907

Develops land so as to provide suitable infrastructure for industrial developmentPromotes investment and trade

Coega Development Corporation

To pursue the aims and objectives of the IDZ Programme, as set out in the IDZ Regulations of the Manufacturing Development Act (MDA), Act.187 of 1993

Main appropriationR 82,750


Develops land so as to provide suitable infrastructure for industrial developmentPromotes investment and trade

Eastern Cape Parks and Tourism Agency

To develop and manage protected areas and to promote and facilitate the development of tourism in the Province in line with the ECPTA Act (2010)


Adjusted budgetR 196,387

Management of conservation of biodiversity and sustainable utilisation of natural resources within the protected areasMarketing, promotion and development of the Province as a tourism destination

Eastern Cape Gambling and Betting Board

To oversee all gambling and betting activities and to deal with matters incidental thereto in the Province and to exercise certain further powers as contemplated in the Eastern Cape Gambling and Betting Act (1997)



Administration of applications for and licensing of gambling and betting business activities; promotion of responsible gambling through public awareness and consumer education; enforcement of compliance with legislation as well as with terms and conditions attached to licences.

Eastern Cape Liquor Board

To regulate registration of the retail sale and the micro-manufacturing of liquor in the Province; and to encourage entry, support and control socio-economic and other costs associated with liquor as provided by the Eastern Cape Liquor Act of 2003



Administration of applications for registration and issuing of liquor license, promotion of responsible liquor trading and consumption, alerting the public to associated risks or adverse effects through public awareness and education; and enforcement of compliance with legislation as well as with terms and conditions attached to licenses.

The table above reflects a summary of transfers to public entities. The relationship between the Department and its public entities is formalised through shareholder compacts and service level agreements (SLA). Public entities utilised approximately 65 per cent of the Department’s budget in 2010/11. This increased to 70% of the adjusted appropriation for 2013/14. The large increase in funding to the ECDC is attributed to additional funding of R330 million for provincial social infrastructure projects that the ECDC is managing and implementing on behalf of the Province. A further once-off allocation to Coega was made for strategic environmental assessment on the return on the effluent water supply project. In the 2014 MTEF period, an additional allocation of R1.517 billion has been made to ECDC and Coega for social infrastructure projects.



1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVESThe AGSA currently performs the necessary audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the report to management, with material findings being reported under the Predetermined Objectives heading in the Report on other legal and regulatory requirement sections of the auditor’s report.

Refer to page 101 of the Report of the Auditor General, published as Part E: Financial Information.

2. OVERVIEW OF DEPARTMENTAL PERFORMANCE

2.1 Service Delivery Environment

Expectations of economic performance in the Eastern Cape are grounded in the national and global economic context. The impact of the financial crisis of 2009 and the ensuing global recession has impacted negatively on the Department and its programmes. Recovery was initially strong in 2010, but growth in output has recently weakened. Although the GDP growth for 2013/14 improved in comparison to the preceding year, the rate was still lower than that which prevailed prior to the 2009 global crisis. The global economic environment is still conservative, as the world economies bounce back from a period of comparatively low growth. However there have been improvements in some sectors, such as construction, which have seen better performance compared to the rest of the country. Although the investment climate is subdued, production of new vehicles has accelerated investment in the automotive sector by original equipment manufacturers (OEM) in the Province.

Climate change posed a serious threat to biodiversity and ecosystem integrity with potential enormous economic and social consequences, as evidenced by the unusual weather patterns. The state of the Environment Report indicates that natural resources (fauna and flora) throughout the country are being exploited in an unsustainable manner. Nationally, 34% of terrestrial ecosystems and 82% of river systems are under threat, while less than 6% of land is under formal protection. There are seven (7) different biomes and three (3) centres of endemism in the Province. Over 300 of the plant species in the Eastern Cape are threatened. The Province is home to four (4) endemic freshwater fish species, eight (8) threatened marine fish species, six (60 threatened frog species (four (4) of these are endemic), and nineteen (19) threatened reptile species (eighteen (18) of these are endemic).

Protected areas are the cornerstone of the Province’s effort to protect and manage biodiversity for current and future generations. Enhancing and expanding the protected area network is seen as an effective strategy for reducing threats to biodiversity and assisting the adaptation of the Province’s endemic biodiversity to climate change.

The Department, together with the ECPTA, worked with local governments, communities, conservation organisations and other landholders to ensure the expansion of the protected area estate. The Department enhanced land-use planning capacity and co-ordination to facilitate better local management of resources. Faced with increasing species and habitats under threat, efforts were increased to combat environmental crimes and public awareness on the consequences of crimes against animals and the environment.



2.2 Service Delivery Improvement Plan

The Department has completed a service delivery improvement plan. The tables below highlight the service delivery plan and the achievements to date.

Main Services and Standards

Main services Beneficiaries Current/actual standard of service

Desired standard of service Actual achievement

Provide consumer complaint support

General business and consumers of any goods or services in the EC

We provide consumer complaint advice and support to consumers on all lodged complaints within a month

We will provide consumer complaint advice and support to consumers on all lodged complaints within a month

875 complaints were resolved, closed or referred to other Regulatory Bodies with jurisdiction to deal with the specific type of complaint

Issuing of EIA decisions, waste license authorisations and emission licenses

Private individuals, general business community and other government departments and agencies wanting to develop a listed activity or in a listed area

We issue decisions, authorisations and licenses on all applications with complete information in line with timeframes

We will issue decisions, authorisations and Licenses on all applications with complete information in line with timeframes

104 environmental Authorisations, 21 waste licenses, seven (7) emission licenses and two (2) waste water treatment applications finalised within the time frame

Issuing of biodiversity permits and licenses

Game farmers, tertiary Institutions, other government departments and buyers (private individuals or general business community) of listed flora and fauna in the EC

We will issue permits and licenses to all qualifying applicants, local, national and international in the Eastern Cape within legislated time frames

We will issue permits and licenses to all qualifying applicants, local, national and international in the Eastern Cape within legislated time frames

9842 biodiversity permits and 701 coastal management permits issued for the reporting period



2.3 Batho Pele Arrangements with Beneficiaries (Consultation access etc.)

Current/actual arrangements Desired arrangements Actual achievements

Awareness sessions in line with Operational Plan and Calendar of Events (which will be posted on the Website) and on an ad hoc basis when invited by stakeholders

Business Plan for Education and Awareness Programme developed to improve on the quality of Awareness Programmes

To conduct two stakeholder engagement sessions per quarter across the ProvinceConvene awareness sessions in line with operational Plan and Calendar of events (which will be posted on the Website) and on an ad hoc basis when invited by stakeholders

A total of 77 workshops were conducted attended by 3 402 delegates on the following themes aligned with the Consumer Education Business Plan: Savings Month and Right to Fair and Honest Dealing; Right to Fair Value, Good Quality and Safety

The second education programme focused on Spend Wisely theme which was conducted during the festive season from 15 November ended 31 December 2013. The focus was on creating awareness about sound financial planning with tips on how consumers can avoid wasting money

For the reporting period ten (10) radio interviews and five (5) interviews with community newspapers were conducted in the advocacy of education programmes, for example, the World Consumer Rights Day celebration held jointly with Amahlathi District Municipality in Stutterheim on 6 March 2014

Conduct stakeholder forum sessions once a quarter

To convene a stakeholder forum session once a quarter

Four (4) Environmental Quality Management (EQM) Stakeholder fora were held on Environmental Impact Management (EIM), Waste Management and Air Quality

Conduct monthly and quarterly stakeholder engagement sessions

Conduct monthly and quarterly stakeholder engagement sessions

Four (4) stakeholder engagement sessions were held through the Eastern Cape Safari Industry Committee (SECSICOM) and the Department, discussed Threatened or Protected Species (TOPS), drafted Regulations and TOPS lists, the Draft 2014 Hunting Proclamation and also the Bio-prospecting Industry; and met with the communities where Aloe is harvested

Two (2) Eastern Cape Provincial Coastal Committee meetings were held during the reporting period

Monthly meetings such as the Biodiversity Technical Team (BTC), Off-Road Vehicles (ORV), TOPS implementation audits and also between National Department of Environmental Affairs, DEDEAT, King Sandile Development Trust, Imingcangathelo Community Development Trust and Masakhane Community Property Association took place



2.4 Service Delivery Information Tool

Current/actual information tools Desired information tools Actual achievements

Information sessions Information will be available on the website with links to National Regulators

Information sessions as per Annual Performance Plan will be held to create awareness of consumer rights and responsibilities

Information pamphlets will be developed. Radio interviews, coupled with commemoration of World Consumer Rights Day in March 2014

Pamphlets were developed, ten (10) radio interviews and five (5) interviews with community newspapers were conducted

Quarterly stakeholder forum sessions Information is disseminated in all stakeholder forum sessions once a quarter, distributed to municipalities, multi-purpose centres and departmental website

Achieved, all four sessions were conducted as per the plan

Information sharing sessions (monthly and quarterly): issuing of permits and licenses

Information on environmental awareness is disseminated in all stakeholder forum sessions, monthly and quarterly, pamphlets distributed to municipalities, multi-purpose centres and placed on the departmental website

Eight (8) environmental awareness sessions and environmental theme days were held (Biodiversity Day, Environment Day, Wetlands Indaba and Marine Day).

2.5 Complaints Mechanism

Current/actual complaints mechanism Desired complaints mechanism Actual achievements

Business Regulation and Governance: Consumer Protection - escalation mechanism

Business Regulation and Governance: Consumer Protection - escalation mechanism

The customer care line will be operational in the 2014 financial year with an automated escalation mechanism

Impact Management: An appeal process

Impact Management: An appeal process

Three (3) appeals were finalised and six (6) appeals have been submitted to the MEC for review of decision and awaiting final decision

Biodiversity Management: Provincial Legislation

Biodiversity Management: Provincial Legislation

No review of decision during this reporting

2.6 Organisational Environment

The Department has made strides in improving service delivery drivers, and the achievement of an unqualified audit report for the 2012/13 financial year suggests that interventions to improve corporate governance are bearing fruit. Notable progress has been recorded in the areas of human resource recruitment where executive management positions have been filled, though women in senior management position constituted 33 per cent of the SMS members, despite the fact that women are the majority of staff in the Department; the establishment of a fully functional audit committee, governance structures, and improved relations with public entities, national departments and municipalities and improved implementation of the human resource management compliance framework. Despite these successes, to achieve optimal levels of performance remains a challenge. The Department’s average performance in terms of achieving its set targets in the APP was 65% based on the reported performance for the period 2009/10 to 2011/12 financial years. Clearly there is still room for improvement



and efforts will be expanded to ensure that all barriers to service delivery are resolved. Amongst others, these include the finalisation and implementation of a new organisational structure, continued implementation of organisational culture change management strategy and addressing low staff morale; reviewing and replacing outdated processes with automation to improve efficiency; and ensuring that the human resource strategy of the Department remains relevant and evolves with changes in the operating environment. Already the e-vaya electronic system has improved the turnaround time for processing documents such as memos, leave applications and payments, among others.

2.7 Key Policy Developments and Legislative Changes

A number of policy and legislative issues have been relatively stable in the year under review. While the Demarcation Board completed its demarcation study and report, the Eastern Cape has not been affected by such changes. The operations of the Department have also not changed from the preceding year.

The Department of Trade and Industry has initiated the Licencing Bill emanating from the Business Act. This Bill has not yet been finalised by the DTI.. The Bill recognises the importance of local government in the development arena.

There has been a call to review by-laws under the Department of COGTA. The laws will create a conducive investment climate within the local sphere of government.

The Eastern Cape Liquor Act (No.10 of 2003) is being amended. The proposed Liquor Bill is awaiting consideration by the Provincial Legislature in 2014. Amendments to the liquor regulations have been made based on the old Act, in particular, the fee adjustments. The impact of such changes is yet to be seen in 2014/15.

The Eastern Cape Gambling and Betting Act (No.8 of 2002) is also going through transformation. The regulations in terms of the proposed Gaming Bill will be finalised upon approval by the Provincial Legislature in 2014.

On the SEZ Bill, the Province made further submissions to the DTI.. The Department is positioning the Wild Coast in particular as a SEZ. This presents an opportunity for the Department to optimise development with a focus on local economic participation.

The Eastern Cape Parks and Tourism Agency Act (No.2 of 2010) requires regulations to be amended. This work could not be completed in 2013/14 and will be carried over to 2014/15. The review of tourism- related provisions forms part of consideration in the drafting of Bills. There is an emerging direction from the National Department of Tourism (DoT) regarding this sector. The regulation in terms of the Unfair Business Practices Act, which were published for public comment, were finalised and submitted to the Portfolio Committee for further processing. Nominations were received from interested parties to serve on the Eastern Cape Consumer Affairs Tribunal. These have been published for comment.

Lastly, the Eastern Cape Development Corporation Act (No.2 of 1997) and the Memorandum of Incorporation to align with the new Companies Act (2008) and provisions of the King III Report require attention. A discussion document to inform a possible review of these has been developed.

3. STRATEGIC OUTCOME ORIENTED GOALSThe Department has one goal, namely innovation for sustainable development which is supported by five strategic objectives.

Strategic Goal Strategic Objectives

By 2014, DEDEA will be recognised as an innovative professional organisation which facilitates and regulates participation in a growing low-carbon provincial economy

SO 1 Improve Organisational Performance

SO 2 Local Economic Participation

SO 3 Carbon reduction and Green Economy Initiatives

SO 4 Emission Reduction

SO 5 Securing the Provincial Conservation Status

No specific targets were set for the goal at the beginning of the strategic cycle. However, the targets contained in the annual performance plan as outlined in the sections under each of the three programmes of the Department, bear testimony to the drive towards the strategic goal. When the goal is linked specifically to the strategic objectives, the following high level outcomes can be noted:



Outcome 4: Decent employment through inclusive growth

Through the efforts of the Department and its three public entities (ECDC, ELIDZ and Coega), a total of 23 457 jobs were created.

The Buy-Eastern Cape campaign has been presented to stakeholders and various chambers are now on board. The programme will have a knock-on effect on business activity in the Province which will stimulate employment creation and local production of goods and services. Through the ECDC, the Department has disbursed R650 million to SMMEs over the past five (5) years. A total of 272 SMMEs benefited from the SMME financing and support programmes offered through the ECDC. A total of 91 co-operatives were supported while the two IDZs trained a total of 14 629 people in various sectors of the economy. Outcome 6: An efficient, competitive and responsive economic infrastructure network

The IDZ programme is designed to spur infrastructure development and economic growth in the Province. World class infrastructure and services continue to be provided by the two IDZs. The Department was instrumental in supporting the development of the SEZ Bill and is promoting the development of SEZs, in particular the Wild Coast SEZ.

Collaborative efforts have been made with national public entities such as Transnet and Eskom. Transnet is making significant investment in rail and port infrastructure, in particular the port of Ngqura, Port Elizabeth, East London Port and the proposed manganese rail freight line from the Northern Cape Province to port of Ngqura.

Support was provided through the economic growth infrastructure cluster of the Province, hence road upgrades on the N6 freeway and N2, among others.

Outcome 10: Environmental assets and natural resources that are well protected and continually enhanced.

Environmental challenges necessitated the need to conduct awareness campaigns throughout the Province. A total of 41 environmental awareness activities were conducted. The Department has performed well on EIAs with no backlogs recorded. A total of 157 EIAs were processed within set timeframes. The Department processed waste license applications including the Graaff Reinet landfill closure licence, waste tyre recycling project and two wastewater treatment works during the year. The waste tyre recycling project is particularly exciting as it offers a sustainable solution to prevent millions of waste tyre from being disposed of on refuse sites. The Department is also participating in a nationally run project which targets the retrofitting of municipal and provincial buildings in order to improve their energy efficiency.

The conservation estate in the Province was enhanced by the addition of protected areas in Bavianskloof and the Kwelera Botanical Garden. A total of 46 000 hectares was added to the land under conservation. The ECPTA developed a road and facilities within a number of its nature reserves to improve their competitiveness and staff morale.

To date, twelve companies with an investment potential of R20 billion have secured contracts under the Department of Energy’s independent power producer programme. Three of the four air monitoring networks have entered into service level agreements with SAAQIS. This equates to ten out of a possible eleven monitoring stations. However, no data has yet been provided due to a problem with data format and transfer.

Outcome 12: An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship

The Department has been improving its internal business processes. An acknowledgement was recorded in the Strategic Plan of 2010-2015 that the Department’s systems and structures do not adequately support functionality in the core delivery areas which it is responsible to execute. To attend to the prevailing situation, the Department resolved that there is a need for a project that intends to improve the operational processes, systems and policies in support of its mission and strategic plan to achieve operational excellence and eliminate blockages in business processes; streamline workflows, and enhance the quality and accessibility of the Department’s services.

The deliverables included mobilisation, process discovery, as-is modelling, process analysis, and recommendations to streamline the processes that were finalised during the 2013-14 financial year. The to-be modelling process, which includes process maps and process manuals, is respectively 90% and 20% completed, to be finalised at the end of June 2014. All critical posts have been filled and boards of public entities are fully functional. However, the new organisational structure that could not be completed during the year will be finalised in the 2014/15 financial year.



There are now increased partnerships and relationships with different stakeholders at all levels of government leveraging resources and intellectual capital. The ICT systems of the Department have improved through the addition of e-vaya, an internal business transacting system, as well as video conferencing facilities which have reduced the cost of doing business.

The Department completed an organisational performance assessment which focused on dimensions of performance, capacity, motivation and environment. Efforts to empower citizens were implemented through such programmes as the consumer awareness programmes and the liquor and gambling awareness campaigns.

4. PERFORMANCE INFORMATION BY PROGRAMME

4.1 Programme 1: Administration

Programme Purpose

Administration provides the Department with strategic leadership and management, as well as overall administrative and performance oversight function.

The programme is structured as follows:

Sub-Programme Sub-Programme Purpose

1.1: Office of the MEC Provide overall political and policy leadership for the Department

1.2: Office of the HOD Provide effective and efficient strategic leadership to the Department

1.3: Financial Management Establish and maintain appropriate financial management systems

1.4: Corporate Services Oversee the implementation and management of strategic support functions, i.e. Human Resource Planning and Practices, Communications, Organisational Development, Security Management, Office Management and Customer Care, which collectively advance the epartment’s strategic objectives and improve service delivery

Strategic Objective:

SO 1: Improved Organisational Performance

Strategic objective indicators, planned targets and actual achievements

Programme Name: Administration

Strategic Objectives

Performance Indicator

Actual Achievement

2012/2013

Planned Target2013/2014

Actual Achievement

2013/2014

Deviation from Planned

Target to Actual Achievement for 2013/2014

Percentage of Target Achieved

SO1: Improved Organisational Performance

Business process efficiency score

New Indicator 3 0 (3)1 0%

1 Business efficiency was not measured during the reporting period. The business processes that were being developed had not been finalised in time as planned to allow efficiency assessments to take place.



Performance indicators, planned targets and actual achievements

No. Programme/Sub-programme


Actual Achievement

2012/2013


Actual Achievement

2013/14




Sub-programme 1.1: Office of the HOD

1.1 Customer relations index

New indicator 3.5 0 (3.5)2 0%

1.2 Organisational performance index

New indicator 3.5 3.3 (0.2)3 94.3%

Sub-Programme 1.3: Financial Management

1.3 Financial maturity index

2.364 3.0 2.8 (0.20)5 93.3%

Sub-Programme 1.4: Corporate Services

1.4 HR efficiency index

New indicator 6.0 4.3 (1.7)6 71.7%

Strategy to overcome areas of under performance

As indicated, the customer relations questionnaire was developed but could not be administered in time to be reflected in the performance of the 2013/14 financial year. This activity will be undertaken in the first half of the 2014/15 financial year.

In terms of organisational performance, a baseline has now been set and areas of improvement identified, one of which is “organisational capacity”. The Department is already in the process of obtaining approval for a revised organogram which, when implemented, will enable the Department to fill capacity gaps in key service delivery areas. “Organisational Motivation” was another area which scored relatively low. Further assessments in this area will be undertaken in order to address the causes of low morale which can have a negative impact on performance.

The lower than planned score in terms of the financial maturity index was mostly due to capacity constraints in the SCM unit. With the appointment of a senior manager and manager in the unit, together with additional short term support from a service provider, the capacity in supply chain has improved significantly. Once the organogram has been approved, permanent appointment in the unit can be made, thereby institutionalising the required capacity.

Changes to planned targets

There were no changes to planned targets.

Linking performance with budgets

The performance indicators of the programme provide firstly an indication of overall organisational performance and, secondly, measures of performance in the delivery of corporate service functions to the rest of the Department. Therefore, there may not be a direct link between the performance of the programme and the budget. The link is more indirect and reflected through compensation of employees, goods and services etc. The reasons for variances in budget spending are explained below:

2 The Department did not administer a customer relations survey in the 2013/14 financial year. A questionnaire was developed but could not be administered on time to include in the annual report. 3 This was a new indicator for the Department to measure capacity, environment and motivation. A target score of 3.5 representing 70%, which in hindsight was an ambitious target. A baseline has

now been set and will provide a platform for focused attention to improve performance in subsequent years.4 Although this indicator was not included in the 2012/13 APP and annual report, the indicator was measured and a score of 2.36 was achieved. 5 The 3% variance is less than the commonly accepted variance level of 5%. The Department did not have sufficient supply chain management capacity during the year resulting in asset management,

goods and services variables performing badly. There was also no revenue management capacity in the Department. 6 Low performance for the Department was recorded under change agent role, employee recruitment and lifestyle management, as well as organisational development and design.



Sub-programme Expenditure

2013/2014 2012/2013

Sub- Programme

Name

Final Appropriation

ActualExpenditure

(Over)/Under Expenditure

Final Appropriation

ActualExpenditure


R’000 R’000 R’000 R’000 R’000 R’000

Office of the MEC

6 478 5 995 483 7 674 5 982 1 692

Office of the HOD

58 688 55 220 3 468 55 084 48 877 6 207

Financial Management

88 901 76 318 12 583 71 428 68 706 2 722

Corporate Services

53 374 49 260 4 114 52 391 47 263 5 128

TOTAL 207 441 185 141 20 648 186 577 170 749 15 749 The variation on compensation of employees is less than the 2% threshold, therefore is not considered to be material. However it has been caused by late appointment of staff within the programme due to the delayed OTP approval of the organogram, late payment of pay progression and performance bonuses. With regard to goods and services, the under-expenditure relates to delays in the procurement of the office equipment (laptops) and outstanding payments of invoices that have been submitted late by service providers. Other payments were not done as the delivery of goods and services wasnot complete. Under-expenditure on the capital assets is due to the non-procurement of the motor bikes for the green scorpions as well as the over-budgeting for finance leases.

4.2 Programme 2: Economic Development

Economic development is primarily responsible for administering sustainable economic policies and developing appropriate strategies to promote business development and job creation. The overall goal of the programme is to sustain economic development through partnerships.

This programme is structured as follows

Sub-programme Sub-programme Purpose

2.1: Integrated Economic Development Services

• To support and develop business enterprises• To promote economic growth and development of local economies with partnerships

with key stakeholders by aligning Local and Regional Economic Development (LRED) initiatives with government programmes

• To facilitate the process of empowerment and creation of an enabling business environment for PDIs

2.2: Trade and Sector Development • To facilitate trade, export promotion and attract new investment in priority sectors in line with the Provincial Growth and Development Plan (PGDP), Department of Trade and Industry (DTI) macro-economic strategy and Provincial Industrial Development Strategy (PIDS)

• To create an enabling environment for the sustainable growth and development of the Green Economy and Tourism sectors in the Eastern Cape

2.3: Business Regulations and Governance • To lobby against and address barriers in the broader business environment which inhibit business development

• To develop, implement and promote measures that ensure the rights and interests of all consumers

• To promote and maintain an effective and efficient regulatory system for the liquor, gambling and betting industry



2.4: Economic Planning • To develop evidence based provincial policies and strategies which inform decision making processes

• To ensure accessible scientific information to inform economic policy and planning processes

2.5 Tourism • To create an enabling tourism environment through legislation, policy and strategy development

• To create demand and supply for tourism• To ensure sustainability and tourism sector transformation


• SO 2: [Local economic participation] – To increase the number of individuals participating in economic activity in marginalised communities, particularly on the Wild Coast.

• SO 3: [Carbon reduction and Green Economy Initiatives] – To increase activity related to low-carbon and greener economy.

Strategic objectives indicators, planned targets and actual achievements

Programme Name: Economic Development



Actual Achievement

2012/2013


Actual Achievement

2013/2014




SO 2: [Local economic participation]: To increase the number of individuals participating in economic activity in marginalised communities, particularly on the Wild Coast.

Employment Creation (Growth in employment - %)

-1.7 2.6 3.27 0.68 123%

Eastern Cape Regional Economic Growth Rate (GDPR - %)

3.4 2.8 2.69 (0.2)10 93%

Public Entities Accountability Index

6.7 8.0 8.7 0.711 109%

7 The reflected achievement is based on the latest available data at the time of reporting. This data is collected and calculated by Statistics South Africa, and there is a noteworthy delay on the period reported. Although the Department is reporting on performance for the 2013/2014 year, the latest data available to date actually corresponds to the 2012/2013 period (specifically from Jan 2012to Dec 2012 and Jan 2013 to Dec 2013 respectively).

8 The rate of economic growth was higher due to increased job opportunities in the construction industry during the last two quarters of the calendar year.9 This data is collected and calculated by Statistics South Africa, and there is noteworthy delay on the period reported – given that data collection, capturing and analysis is a lengthy process. Although

the department is reporting on performance for the 2013/2014 year, the latest data available to-date actually corresponds to the 2012/2013 period (specifically from Jan 2012 to Dec 2012)10 Lower performance was due to the weak global economy (of which the Eastern Cape economy is linked) which continued to experience lower growth since the financial crisis of 2009. 11 The target was set at approximately 20% above the performance of the 2012/13 financial year. The target was achieved as more effort was made by both the Department and public entities to

comply with requirements.



Performance indicators planned targets and actual achievements

No. Programme/Sub-programme: Integrated Economic Development


Actual Achievement

2012/2013


Actual Achievement

2013/2014




Sector Specific

Programme/ Sub – programme: Integrated Economic Development

2.1Number of existing SMME’s supported

This indicator was not in the

APP of the Department

224 175 (49)12 78%

2.2 Number of new SMME’s developed

204 56 97 4113 173%

2.3 Number of existing co-operatives supported



100 24 (76)14 24%

2.4 Number of new co-operatives developed

3 40 72 3215 180%

2.5 Number of economic development projects supported at local and regional levels

24 30 14 1616 47%

2.6 Number of capacity building interventions to municipalities

3 8 0 (8)17 0%

2.7 Number of target groups specific opportunities identified

4 6 6 - 100%

2.8 Number of target groups specific interventions

2 3 3 - 100%

2.9 Number of LED Strategies aligned to PGDS and other spatial development plans

New indicator 8 0 (8)18 0%

2.10 Number of job opportunities created through economic development programmes



21 306 23 45719 2 15120 110%

12 Demand for pre- and post-financial support dropped significantly in the fourth quarter. Support is demand-driven hence the below target achievement rate..13 Development of SMMEs is demand driven. There were increased requests for SMMEs development during the year.14 Numerous applications received could not be considered due to funding constraints.15 More effort was put into development by the ECDC.16 Only 14 LRED projects for 2013/14 were supported because not all regions have projects approved for the reporting period. The LRED funds for 2013/14 were only transferred late (January and March

2014) and most of the projects have not yet started.17 The unit responsible for this indicator did not have capacity since its energies were focused on LRED projects.18 The Department’s LED strategy has not yet been approved and therefore no alignment work was done.19 The following job opportunities (actual jobs) were realised: ELIDZ 4 563, Coega 16 131 and ECDC 2 763.20 Due to more investments than planned, additional jobs were created. There was also increased construction activity in the Province which increased job opportunities. However, the ECDC had low

disbursements of funds in business funding, Imvaba funding and job stimulus fund which resulted in a lower number of jobs than planned.





Actual Achievement

2012/2013


Actual Achievement

2013/2014




Programme/Sub–-programme: Trade and Industry Development

Sector-Specific

2.11 Number of investment projects realized



31 1421 (17)22 45%

2.12 Number of businesses assisted with export support



40 81 4123 203%

2.13 Number of people trained (sector development)



20 140 12024 700%

2.14 Number of people trained (strategic initiative)



13 24625 1448926 124327 109%

2.15 Number of businesses assisted with proactive interventions


2.16 Number of infrastructure projects supported

New indicator 2 2-

100%

2.17 Number of entrepreneurs in the incubation programmes (in targeted sectors)

22 32 7829 4430 244%

2.18 Number of innovative prototypes produced

New indicator 2 2 - 100%

2.19 Number of innovation solutions collected through Exchange Solutions


21 The following investment projects were realised: ELIDZ 4, Coega 10. Although ECDC claimed an achievement of 19 investors, sufficient evidence could not be provided to substantiate the investments, and these are therefore excluded from the actual reported outcome.

22 An increased investment in the auto sector was due to the Mercedes Benz SA’s W205 project which will be produced in June 2014. Some of the projects that were initiated in the preceding years eventually came to fruition in 2013/14. The under-achievement is due to the exclusion of the 19 investments claimed by ECDC.

23 During 2013/14 the ECDC participated in three (3) new International Trade Shows for the first time, which significantly increased the numbers of SMMEs assisted, namely Gulffood (Dubai), Foodex Japan and the Indonesia International Furniture Expo. Moreover, in April 2013, ECDC launched the first-ever permanent exhibition in Ningbo, China wherein seven (7) local companies are exhibiting their products.

24 There was a concerted effort to recruit and train people including those from outside the urban centres (Cacadu and Chris Hani Districts). There is a renewed interest from local businesses and uptake of training on export opportunities as they realize the importance of Export Awareness Training.

25 In order the prevent a misinterpretation of the target, the following is noted (especially with regard to the IDZ’s: (a) the jobs are for variable periods, some as short as a few days, (b) the same individual may be counted on different projects, and (c) jobs on implementing agent projects are measured as the maximum over any month of the year, whereas the job itself may have been created in a previous performance year. The target was not reported on in the 2012/13 annual report of the Department, but the method of calculation is consistent with that reported in the implementing agent over the past financial years. The Department is considering revising the indicator description in future in order to measure jobs only after a certain minimum period, or in terms of a full-time equivalent or pro-rata percentage of a full year.

26 The breakdown of people trained is as follows: ELIDZ 48 and Coega 14 44127 Actual score includes 5 395 jobs created in the Department of Education (KZN) infrastructure programme, where Coega is the implementing agent. 28 Sufficient portfolio of evidence could not be provided by ECDC to substantiate the other two interventions. 29 Incubates were active as follows: ECDC 21 and ELIDZ 4330 The plan was to expand ECITI through setting up centres in Queenstown and Mthatha. There has been a delay in transfer of approved funding from the DTI, and thus the centres have not been

established as planned. The funds were only received on 31st March 2014. Other planned initiatives were not realised due to withdrawal of ESKOM as a partner.31 The Science and Technology Programme spent the year developing systems to enable the collection and issuing of challenges on the Connect and Solve Platform. The solution only goes live in June

2014. This made it difficult to meet the target. The indicator has been modified in the 2014/15 year to read “Number of challenges issued through the Open Innovation Platform.”





Actual Achievement

2012/2013


Actual Achievement

2013/2014




2.20 Number of sustainable energy initiatives facilitated

New indicator 5 8 332 160%

Programme/Sub–programme: Business Regulation and Governance


Actual Achievement

2012/2013


Actual Achievement

2013/2014




2.21 Number of public entities performance reports received

24 30 30 - 100%

2.22 Number of public entities performance reports analysed

24 30 24 (6)33 80%

2.23 Number of barriers identified

2 1 0 (1)34 0%

2.24 Number of barriers addressed

1 - - - -

2.25 Number of consumer education programmes conducted

119 6 6 - 100%

2.26 Number of consumer complaints received

886 1140 681 (459)35 60%

2.27 Number of consumer complaints resolved

506 856 920 6436 107%

2.28 Number of liquor applications received (liquor regulation)

978 500 643 14337 129%

2.29 Number of liquor licenses issued (liquor regulation)

139238 9000 8550 (450)39 95%

2.30 Number of awareness programmes conducted (liquor regulation)

116 112 130 1840 116%

32 Short term support was given by the GIZ team in 2013 and 2014 calendar years which enabled the Department to exceed its target. The target of five was made without consideration of the GIZ technical support. 33 Annual reports of public entities were not analysed during the quarter when they were published. This was due to capacity constraints within the Public Entities Oversight Unit. The vacancy has since been filled. 34 No valid portfolio of evidence existed at the time of reporting.35 This indicator is demand driven in that it is dependent on consumers lodging consumer related complaints.36 There has been a concerted effort by the Department to review all pending matters and this drive ensured that there was an increase in the resolution or closure of pending matters.37 Applications were higher than anticipated. The application pipeline management tool is used to ensure that there are no blockages in processing of licenses.38 These were new licenses only.39 Stricter application of requirements relating to the conditions of premises, proof of right to occupy the premises and the community consultation resulted in 27% of the applications considered being refused. The 391 non-renewal licenses in 2012/13 affected the number of active licenses in 2013/14.40 More media coverage due to growing media interest in ECLB programmes.



2.31 Number of people reached through awareness programmes (liquor regulation)

23744 18000 18 707 70741 104%

2.32 Number of inspections conducted (liquor regulation)

7410 5240 6545 130542 125%

2.33Number of social responsibility programmes conducted (liquor regulation)



3 3 - 100%

2.34Number of gambling licenses issued (Gambling and Betting)



8 13 543 163%

2.35Number of awareness programmes conducted (Gambling and Betting)



10 10 - 100%

2.36Number of inspections conducted



84 88 444 105%

2.37Number of compliance audits conducted (Gambling and Betting)

67 57 59 245 104%

2.38Number of social responsibility programmes conducted

6 4 4 - 100%

2.39Value of resources mobilised for strategic projects

R 197m R10m R50,397m R40,397 m46 504%

Programme/Sub-programme: Economic Planning

2.40 Number of economic strategies developed

1 2 0 (2)47 0%

2.41 Number of strategies reviewed/updated

1 1 0 (1)48 0%

2.42 Number of R & D initiatives supported

1 1 1 - 100%

2.43 Number of research reports produced

4 4 4 - 100%

41 The number of people reached exceeded target due to more schools showing interest in ECLB programmes.42 More has been done to ensure visibility and compliance in the face of rising complaints emanating from the complaints toll-free line.43 Fewer licenses were issued due to the fact that only those within the control of the ECGBB such as Bingo, Casino and Type B were targeted as key licenses in respect of the Annual Performance Plan for

2013/14 i4. In the previous year all forms of licenses were targeted such as (Type A, Route Operator, Bookmakers, Tote) hence the significant variance. 44 The variance is due to the fact the in the previous year the indicator was not SMART. Inspections conducted included devices tested as well as pre- and post-licencing inspections. In 2013/14 the

indicator was revised and streamlined to focus on those inspections that are predetermined and within the control of the ECGBB.45 More compliance audits conducted in 2012/13 as against the year under review due to more LPMs sampled for audit but the number of LPMs in the 2013/14 year was reduced due to budget cuts.

Audits on LPMs will be conducted on a rotational basis. 46 The alignment to national priorities in relation to departmental strategy yielded positive results. In this regard, support from the DTI for the implementation of feasibility study of the Wild Coast Special

Economic Zones (SEZ) had a positive response for the Department as well as support from national treasury general budget support which was aligned to the province’s renewable energy strategy. 47 TOR for the resource mobilisation and management strategy were developed, however it was decided not to undertake the strategy in 2013/14.48 Although the strategy review reports were completed and the new strategy template aligned to the NTSS,the final steering committee (28 March 2014) agreed that the Department must set final

targets and take ownership in customising the plan.



2.44 Number of provincial economic intelligence reports produced

1 2 2 - 100%

2.45 Number of monitoring reports produced

- 2 2 - 100%

2.46 Number of evaluation reports produced

- 1 0 (1)49 0%

Programme/Sub-programme: Tourism

2.47 Number of products participating in capacity building interventions

New indicator 120 277 15750 231%

2.48 Number of tourism development plans


2.49 Number of skills development initiatives


2.50 Number of event partnerships to enhance the marketing and promotion of provincial tourism


2.51 Total number of tourism product registrations

New indicator 3500 3187 (313)52 91%

49 The evaluation report produced was still in a draft stage. 50 In order to leverage on the resources that are available in other institutions, ECPTA partnered with TEP and ECDC for tourism support programme. This partnership led to more products being

supported than planned. 51 The over-achievement is due to the hosting of two additional events which were not planned, namely, Isingqi Sethu Cultural Festival and Lilizela Tourism Awards.52 The underperformance was caused by the validation exercise of the database which resulted in the removal of product duplications and those that are no longer operating.


Approximately 60% of the programme’s performance indicators and service delivery outcomes are implemented through the department’s six public entities. In order to improve performance, the Department has already begun putting measures in place to ensure greater accountability between the Department and the public entities for the implementation of programmes and projects. Structures within the Department, together with related policies and procedures, as related to public entity oversight, have been put in place. Across the Department, and not only in the programme, greater emphasis is being placed on accountability for performance. In conjunction with better integrated planning and reporting, these measures should augur well for improved performance.

Where performance is hindered by a lack of resources, the Department will continue to seek partnerships and alternative funding sources to resource strategic service delivery projects.


No changes were made.




Sub-programme expenditure

2013/2014 2012/2013

Sub- Programme Name

Final Appropriation

ActualExpenditure


Final Appropriation

ActualExpenditure


R’000 R’000 R’000 R’000 R’000 R’000

Int. Econ. Dev. Services

130 256 128 619 1 589 125 213 13 112 2 101

Trade and Sector Dev.

638 629 637 965 664 153 414 151 954 1 460

Business Reg. and Gov

110 041 106 859 3 182 95 876 91 417 4 459

Economic Planning

5 034 4 551 483 4 062 3 602 460

Tourism 3 613 3 043 618 - -

TOTAL 887 573 881 037 6 536 378 565 370 085 8 480

The under-expenditure on Compensation of Employees is due to not filling vacant professional staff posts within the programme, sector specialists in particular, those that strengthen functions within the programme. Goods and Services under-spending is due to the finalisation of the TOR for the projects, including the Legislative Review Project, Policy Development for Consumer Protection and delay in the submission of invoices for the World Consumer Rights Day celebration, as well as for the Economic Symposium, as is normally done towards the end of the financial year. A delay in the finalisation of the SLA with Ngqushwa Municipality caused a delay in the payment of its transfer.

4.3 Programme 3: Environmental Affairs

Environmental Affairs administers environmental policies that are cascaded down from national level in line with the mandate of the Department. Importantly, it regulates environmental management through instruments such as the environmental impact assessments, compliance and enforcement and biodiversity management tools.

The programme is structured as follows:

Sub-programme Sub-programme purpose

3.1: Policy Co-ordination and Environmental Planning

To establish legislation, policies, programmes, procedures and systems that will effectively empower and support the core functional programmes

3.2: Compliance and Enforcement To ensure that environmental legislation is effectively used to protect the environment and its resources from unlawful and unsustainable exploitation and negative impact

3.3: Environmental Quality Management To strive towards a safe and healthy environment through effective environmental impact assessment, air quality management and waste and pollution management for the people of the Eastern Cape

3.4: Biodiversity Management To conserve the diversity of landscapes, ecosystems, habitats, biological communities, populations, species and genes and promote conservation and sustainable use of natural resources in the Eastern Cape

3.5: Environmental Empowerment Services To empower and capacitate the external stakeholders of the Department to meaningfully participate in and contribute to effective environmental management




SO 3: Carbon reduction applicationsSO 4: Emissions reductionSO 5: Securing the provincial conservation status

Strategic objectives indicators, planned targets and actual achievements

Programme Name: Environmental Affairs


Indicator Actual Achievement

2012/2013


Actual Achievement

2013/2014




SO 3: Carbon reduction applications

Green economy initiatives N/A 5 0 (5)1 0%

SO 4: Emissions reduction

CO2 Emission (Gg CO2 equivalent)

N/A 38 700 38 354 (346)2 99%

SO 5: Securing the provincial conservation status

Status of the ecosystems and species

5 7 0 (7)3 0%

Performance indicators planned targets and actual achievements




Actual Achievement

2012/2013


Actual Achievement

2013/2014




Sub-programme: Policy Co-ordination and Environmental Planning

Sector-Specific

3.1 Number of legislative tools developed

N/A 1 1 - 100%

3.2 Number ofintergovernmental sector tools reviewed

45 45 39 (6)4 87%

3.3 Number of climate change response tools developed


3.4 Number of functional environmental information management systems

1 3 3 - 100%

1 The Department does not have the resources to pursue this objective and will not be in a position to pursue this matter until both legislation and the organogram have been finalised.2 This was as measured by the 2010 EC GHG Emission inventory. Note that there is a time lag of a few years before all data is released by a host of government departments which is used to inform the

Latest GHG Emission Inventory.3 The South Africa National Biodiversity Institute will compile a Country Biodiversity Outlook which will be submitted to the Convention of Biodiversity Conference of Parties 12 to be held in Korea in

October 2014.4 A centralised workshop was organised by the DLG&TA to review all the Municipal IDP’s, however only 39 IDP’s were submitted by municipalities for review hence the under-performance.5 These are long-term projects which were started in the previous financial years with deliverables that fed into this outcome



6 There were projects which started in the last quarter of the 2012/13 financial period and hence the Department could undertake more research7 Environmental crime is unpredictable and this makes it difficult to plan accurately.8 Environmental crime is unpredictable and this makes it difficult to plan accurately.9 There was no baseline information when target was set hence over-achievement.10 This indicator is demand driven.11 This indicator is demand driven and makes it impossible to predict when applications will be received.12 Over-performance is as a result of legislative transition from APPA to AEL with a transition deadline for existing permit holder to convert the APPA permit to an Atmospheric Emission Licence.13 The Eastern Cape Air Quality Management Plan was completed but approval was obtained after the close of the financial year.




Actual Achievement

2012/2013


Actual Achievement

2013/2014




3.5 Number of environmental research projects undertaken

- 1 6 56 600%

Sub-programme: Compliance and Enforcement

3.6 Number of criminal enforcement actions finalised for non-compliance with environmental management legislation

84 101 72 (29)7 71%

3.7 Number of administrative enforcement actions taken for non-compliance with environmental management legislation

45 49 42 (7)8 86%

3.8 Number of compliance inspections conducted


3.9 Number of received s24G applications finalised

12 8 7 (1)10 88%

Sub–programme: Environmental Quality Management

3.10 Number of EIA applications finalised within legislated time-frames

N/A 130 157 2711 121%

3.11 Number of air emissions licence applications finalised within legislated time-frames (atmospheric emissions)

N/A 2 12 1012 600%

3.12 Number of designated organs of state with approved AQMPs

N/A 1 0 (1)13 0%






Actual Achievement

2012/2013


Actual Achievement

2013/2014




3.13 Number of waste licence applications finalised within legislated time-frames

N/A 16 23 714 144%

Sub-programme: Biodiversity Management

Sector–-Specific

3.14 Number of Biodiversity Spatial Plans published

N/A 1 0 (1)15 0%

3.15 The hectares of land under conservation (both private and public) (Cumulative)

N/A 486 49 000 48 51416 10 082%

3.16 Number of provincial protected areas with approved management plans

N/A 4 0 (4)17 0%

3.17 Number of coastal management programmes adopted


Sub-programme: Environmental Empowerment Services

Sector-specific

3.18 Number of job opportunities created through environmental programmes

N/A 913 586 (327)18 64%

3.19 Number of environmental awareness activities conducted

7 25 41 1619 164%

3.20 Number of environmental capacity building activities conducted

7 29 25 (4)20 86%


During the last MTSF period a number of additional functions have been added to the Department’s pool of responsibilities. Climate change and the green economy are two examples of such functions. Consequently this function is poorly funded and resourced to perform this mandate. This matter has been highlighted as a risk to the Department and efforts made to create additional posts for

14 Funding provided to municipalities by National Treasury enabled them to apply for more licences. This matter has been prioritised by the Presidency and funds have been made available by National Treasury.

15 Delays by the Government Printers due to changes in their requirements for printing resulted in the target not being achieved.16 The acquisition of land and the proclamations of Nature Reserves is a long and complicated process which was started a number of years ago and was finalised in this financial year. 17 All the approved Provincial Protected Areas have environmental management plans and consequently the Department did not have to develop any new plans. Until this situation changes the matter

will remain as is.18 Although more effort was put into this indictor, the ECPTA could have surpassed this target had it not been the absence of properly packaged portfolio of evidence. 19 The Department responded to more requests than planned from the public to provide these services.20 There were a number of planned activities during December 2013 which coincided with the mourning period of Nelson Mandela which were cancelled and could not be reorganised at a later date

because the target audience was not on holiday.



staff to perform this function. Currently the Department has not finalised its staff structure.

Environmental crime is difficult to predict and plan for with a high degree of accuracy. Consequently the under-performance in terms of achieving the determined target is beyond the Department’s control. The Department will increase its environmental organised crime network intelligence by forming strategic partnerships with other similar agencies.

The EC Air Quality Management Plan was completed but approval was obtained after the close of the financial year. The plan will be used for updating, aligning or developing the various municipalities’ Air Quality Management Plans in line with the National Environ-mental Management Air Quality Management Act. The Provincial Air Quality Management Officers Forum established in terms of the applicable legislation is a tool that will be used to ensure consistency across the execution of the function by the different spheres of government.

All the approved Provincial Protected Areas have environmental management plans and consequently we did not need to develop these. Until this situation changes the matter will remain as is.

The Department enters into Service Level Agreements with municipalities to provide job opportunities through the Extended Public Works Programme. Delays have been experienced with the municipalities in terms of finalising service level agreements and the procurement processes associated with the project. It is believed that greater regional communication will enhance the administrative processes associated with the finalising of the Service Level Agreements. However, influencing the procurement processes of Local Government is beyond the control of the Department.


No changes to planned targets


Sub-programme expenditure

2013/2014 2012/2013

Sub-Programme Name

Final Appropriation

ActualExpenditure


Final Appropriation

ActualExpenditure


R’000 R’000 R’000 R’000 R’000 R’000

Policy Co-ordina-tion andEnviron-mental Planning

24 857 22 970 1 887 16 604 15 827 777

Compliance and Enforcement

41 113 39 947 1 166 37 613 37 156 457

Environmental Quality Management

14 084 12 659 1 425 12 885 11 669 1 216

Biodiversity Management

203 337 201 362 1 975 196 089 195 259 850

Environmental Empowerment Services

9 722 9 048 674 7 035 6 734 301

TOTAL 293 113 285 986 7 127 270 226 266 625 3 601

The under-expenditure for Compensation of Employees is due to the non-filling of vacant posts, in particular the Environmental Officers. The advert was placed late after consultation with the Office of the Premier. Interview panels were appointed before the closing date of the advert and interviews conducted by the various panels.

With regard to Goods and Services, the programme has been awaiting the implementation of gazetting for the Eastern Cape coastal management programme, Nelson Mandela Bay Municipality coastal set back lines and public participation



process, and finalisation of provincial, national and international environmental celebrated days promotional materials. The programme could not finalise the transaction on Maloti Drakensburg Trans-frontier Programme (MDTP). The MDTP National Co-ordinating Committee chaired by DEA has been requested to implore the Biodiversity Branch DDG to ensure that the five (5) year agreement is finalised and signed by the respective principals so that funds budgeted for such are disbursed on time. The National Department of Environmental Affairs has been requested through the environment sector Minister Technical Committee (MINTECH), that is attended by the environment sector HOD’s and chaired by the DG, to raise the matter of costly delays in gazetting the various sector documents that delay thefinalisation of the legal processes.This matter will monitored during the current financial year.

5. SUMMARY OF FINANCIAL INFORMATION

5.1. Transfer payments to public entities

Name of public entity

Service rendered by the public entity

Amount transferred to the

public entity

Amount spent by the public entity

Achievements of the public entity


Render development services in line with the Eastern Cape Development Corporation Act.

507 111 171 436 Of which R308 million is for the social infrastructure fund, which will be spent by June.R18.5 million is committed on other projects. The following are key achievements: 2763 jobs were created; 81 businesses were assisted with export support; and 140 people were trained.

Eastern CapeLiquor Board

Administer the Eastern Cape Liquor Act and render related services including provision for the registration the retail- sale and micro-Manufacturing of liquor; encourage and support the liquor industry, manage and reduce the socio-economic and other costs of excessive alcohol consumption.

41 131 31 543 The ECLB processed 500 new licenses within 60 days The total number of active licenses as at the end of the 2013/14 financial year was 8550 licenses. Business Skills Training Programme, traders were taken through the Responsible Trading Education Programme.

Eastern CapeGambling and Betting Board

Administer the Eastern Cape Gambling and Betting Act and other administrative related functions.

42 687 42 687 A total of 13 gambling licences were issued while revenue worth R124.5 million was collected. Inspections were conducted at gambling establishments. Ten gambling awareness programmes were conducted.

East LondonIndustrial Development Zone

Develop industrial site in line with the IDZ regulation.

114 907 114 907 4 563 jobs were created; 4 investments projects were realized; 48 people were trained; 78 entrepreneurs were in the incubation programmes in targeted sectors; and 2 prototypes were produced in the Science and Technology Park.


Promote Tourism and management of protected areas as provided for by the ECPTA act.

196 387 182 453 The ECPTA added 49 000 ha of land under conservation. A total of 3187 tourism products were registered with the ECPTA. Nine event partnerships were created.



Name of public entity

Service rendered by the public entity

Amount transferred to the

public entity

Amount spent by the public entity

Achievements of the public entity

Coega Development Corporation

Develop industrial site in line with the IDZ regulation.

82 000 82 000 A total of 10 investors were generated by Coega. The corporation created 16131 jobs. A total of 14441 people were trained in various sectors of the economy.

TOTAL 984 223 625 026

5.2. Transfer payments to all organisations other than public entities

The table below reflects the transfer payments made for the period 1 April 2013 to 31 March 2014

Name of transferee

Purpose for funds used Compliance with Section 38(1) (j)

of the PFMA

Amount transferred

R’000

Amount spent by the entity R’000

Reason for funds unspent by the

entityMunicipalities The funds were used for the

Greenest Municipality Competition and small town revitalization projects.

The participating municipalities are entities registered on the BAS system and comply with BAS requirement.

11 723 The actual amount spent could not be determined at the time of reporting.

Universities The funds were used for the labour market research project at Rhodes University and shale gas research at Nelson Mandela Metropolitan University.

Service level agreement (SLA) signed.

11 064 2 439 Research and skills development programmes were not yet finalised by year end. The funds are carried over to the 2014/15 financial year.

Schools The funds were used for the Environmental Awards Programme.Schools utilised these funds for:Fencing the school yard and gardensFlowers for greening around the school yard.Purchasing two concrete park tables and 10 bags of cement to enhance the school park. Purchaings seedlings and gardening equipment to enhance garden project.

1 000 27 The variance is not material.

LRED Fund To provide support to local entrepreneurial partnerships working in collaboration with local government and other support institution, and to create new economic opportunities that will enable new and better jobs It is also to promote an environment for innovation and enterprise development in the local economies.

SLA’s entered into with beneficiary/project owner.

28 827 11 091 Funds were only transferred in January 2014 and therefore could not be fully utilised by the recipients.

TOTAL 53 614 13 557



6. CONDITIONAL GRANTS

6.1 Conditional Grants and Earmarked Funds Paid

The table below describes each of the conditional and earmarked funds paid by the Department:

Conditional Grant 1: EPWP

Departmental/Municipality to whom the grant has been transferred.

Chris Hani DM

Purpose of the grant Alien eradication (Lapesi)

Expected outputs of the grant To create 50 work opportunities

Actual outputs achieved 120 work opportunities achieved

Amount per amended DORA R550 000

Amount transferred R550 000

Reasons if amount as per DORA not transferred N/A

Amount spent by the Department/Municipality (R’000)

R550 000

Reasons for the unspent funds by entity N/A

Monitoring mechanism by the transferring department

PSC member and site visits. Report for DPW EPWP unit.

7. DONOR FUNDS

7.1 Donor Funds Received

In 2012 DEDEAT and GIZ entered into two cooperation agreements for technical support, namely: support to DEDEAT in regard to skills for green jobs; and support to DEDEAT under the South African German Energy Programme.

• Under Skills for Green Jobs, GIZ has provided a full-time Technical Advisor. The advisor will be assisting in the capacity building of FET lecturers, providing technical assistance to members of the Provincial Green Skills Forum, and providing support to DEDEAT at numerous career days in the Province. Furthermore, under the Skills for Green Jobs Programme, GIZ has paid for the training of Eastern Cape FET lecturers in Germany in the fields of Skills for Renewable Energy and Energy Efficiency.

• Under the South African German Energy Programme, a fulltime Technical Adviser has been assigned to DEDEAT to assist in facilitat-ing the implementation of the Provincial Sustainable Energy Strategy. The adviser has provided direct support to municipalities who have approached DEDEAT for assistance. Furthermore, GIZ has commissioned the study: Mapping of Provincial & Municipal Permitting Process for IPP Projects in the Eastern Cape. The study provides support to municipalities and provincial government departments in regard to the authorisations for Independent Power Producers.

The Technical Advisor joined the Department in 2013, but to date, it has not been the policy of GIZ to disclose the financial value of their support to DEDEAT. The value of the support cannot be quantified and is a donation in kind.

8. CAPITAL INVESTMENTS

8.1 Capital Investment, Maintenance and Asset Management Plan

The Department did not have capital investments.



1. INTRODUCTIONCommitment by the Department to maintain the highest standards of governance is fundamental to the management of public finances and resources. Users want assurance that the Department has good governance structures in place to effectively, efficiently and economically utilize the state resources, which is funded by the tax payer.

2. RISK MANAGEMENTThere has been no change to the Department’s risk management policy and framework. A Risk Management Committee was established to oversee implementation. The General Managers are the risk champions within the Department and are accountable to the Accounting Officer. To enhance risk management effectiveness, the senior management performance contracts included risk management as a key performance area.

3. FRAUD AND CORRUPTION The Risk Management Committee has reviewed risk management implementation within the Department and issued reports for consideration by the Accounting Officer and the Audit Committee during the year under review. The audit of the effectiveness of risk management was conducted by the Internal Audit of the Department and found the Department lacking in the implementation of risk mitigation plans. That is consistent with the Committee report, sighting challenges in the submission of portfolio of evidence to support implementation of risk management within the Department. The Accounting Officer is enhancing implementation of risk management through establishment of systems and capacity building.

The Department is utilising the Public Service Commission Hotline number (0800701701) and the Presidential Hotline number (17737) to report fraud and corruption. Stakeholders are also allowed to report through the Accounting Officer and the MEC’s offices. Currently there is no case for investigation.

4. MINIMISING CONFLICT OF INTERESTThe processes followed to manage the conflict of interest include:

a. Disclosure of financial interests by senior management, Supply Chain Management Practitioners, role players and BID Committee members.

b. Vetting of senior management, staff and key suppliers.

c. Ensuring proper delegation of financial, human resource and supply chain management functions.

d. Verification of bidders’ conduct against the register of tender defaulters.

e. Verification of the Standard Bidding Documents (SBD 4) during the procurement process.

f. The service providers are required to disclose their financial interests and connected government employees through the supply chain management processes.

Cooperative governance between the Department and South African Police Service, Trade and Industry, Provincial and National Treasury, South African Revenue Services and State Security Agency enhanced management of conflict of interest.



5. CODE OF CONDUCT

The Code should act as a guideline to employees as to what is expected of them from an ethical point of view, both in their individual conduct and in their relationship with other. Compliance with the Code can be expected to enhance professionalism and help to ensure confidence in the public service.

The primary purpose of the Code is a positive one, viz. to promote exemplary conduct. Notwithstanding this, an employee shall be guilty of misconduct in terms of Section 20 (t) of the Public Service Act, 1994 read with section, and may be dealt with in accordance with the relevant sections of the Act, if he or she contravenes any provision of the Code of Conduct or fails to comply with any provision thereof.

A pledge signed by the executive management is displayed in the Department’s offices to give effect to commitment by top man-agement to abide by the Department’s Code of Conduct.

Meetings with regions have been held during the year to promote the Code of Conduct.

6. HEALTH SAFETY AND ENVIRONMENTAL ISSUESSome offices at head office still have exposed network cables that are lying across the floor and this poses a huge risk to personnel. Injury on duty can occur thus exposing the Department to litigation by employees or visitors. Inadequate access control in the building is a challenge. There is no proper screening of visitors and staff for dangerous weapons.

Absence of proper health and safety equipment in the Amalinda office of the Environmental Affairs Programme is also a challenge that could lead to litigations against the Department should any disaster happen there.

Ergonomics: Most offices are not conducive for optimal performance by employees. Office space is limited, there is poor lighting and chairs are not comfortable.

The absence of a standby generator at Head Office is a problem in times of power outage. There have been incidents where people were locked up in elevators during sudden power cuts. A diabetic or claustrophobic person could collapse inside there and the Department could be sued.

The regional offices seem to have minor challenges especially now that the Chris Hani office has relocated to Komani hospital.

Joe Gqabi is about to move to new premises and the OR Tambo office is undergoing renovations.

7. PORTFOLIO COMMITTEESThe Department participated in all Portfolio Committee meetings called by the Portfolio Committee on Economic Development, Environmental Affairs and Tourism. This was in relation to budgeting, planning and reporting.

8. SCOPA RESOLUTIONS

The Department was not called for SCOPA hearings so there were no SCOPA resolutions for the Department for 2013/14.



9. PRIOR MODIFICATIONS TO AUDIT REPORTS

Nature non-compliance Financial year in which it first arose Progress made in clearing/resolving the matter

Increases to the value of R513 000 in the budget for transfers and subsidies to other institutions were not approved by the Provincial Treasury, as required by National Treasury Regulations 6.3.1(a) and 6.3.1(d).

2012/13 The Department has put in place monitoring systems for all shifting and virements to be approved by the relevant structures in terms of the regulations.

The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework and as required by Section 40(1) of the PFMA misstatements of revenue. Disclosure items identified by the auditors in the submitted financial statements were subsequently corrected and the supporting records were provided subsequently, resulting in the financial statements receiving an unqualified audit opinion.

2012/13 The Chief Financial Officer has arranged training and the review has been scheduled earlier for both the Audit Committee and the Internal Auditor’s unit.

Certain goods and services of a transaction value above R500 000 were procured without inviting competitive bids, as required by TR 16A6.1.

2012/13 This was an error in the interpretation of the Treasury practice note when the thresholds were increased. The matter has since been resolved and the Department is compliant in this regard.

Invitations for competitive bidding were not always advertised for a required minimum period of 21 days, as required by TR 16A6.3(c).


Bid adjudication was not always done by Committees that were composed in accordance with the policies of the Department, as required by TR 16A6.2 (a), (b) and (c).


Certain contracts and quotations were awarded to bidders who did not submit a declaration on whether they are employed by the State, or connected to any person employed by the State, which is prescribed in order to comply with TR 16A8.3.

2012/13 All bidders in the current financial year, as part of the Audit intervention plan, do submit declaration forms.

Certain employees of the Department performed remunerative work outside their employment in the Department without written permission from the relevant authority as required by Section 30 of the Public Service Act, 1994 (Act No. 3 of 1994).

2012/13 Although it has been difficult to track transgressors, the Department has issued communication that compels employees to make the necessary applications for approval for all remunerative work outside their employment.

Sufficient appropriate audit evidence could not be obtained that a proper process was followed to verify the claims made in the candidate’s applications before appointment as required by Public Service Regulation (PSR) 1/Vll/D.8.

2012/13 Prior to appointment, reference checks are made, verifications of qualifications and citizenship are facilitated and security checks are facilitated by NIA through the Security Management unit.

Sufficient appropriate audit evidence could not be obtained that the Accounting Officer implemented effective measures to ensure that employees do not abuse sick leave, as required by PSR 1/V/F(c).

2012/13 Follow-ups are made on officials who are frequently on sick leave and the Wellness unit follows up on those cases.



Nature non-compliance Financial year in which it first arose Progress made in clearing/resolving the matter

The Accounting Officer did not take effective steps to prevent irregular expenditure, as required by Section 38(1) (c) (ii) of the PFMA and TR 9.1.1.

2012/13 The SCM unit has been without leadership due to the delay in the organisational structure process and death of the previous SCM Manager. A Senior Manager for SCM was appointed during the year.

Contractual obligations and money owed by the Department were not settled within 30 days or an agreed period, as required by Section 38(1) (f ) of the PFMA and TR 8.2.3.

2012/13 The Department has improved and there is a plan to have all payments paid within 30 days.

The Accounting Officer did not take effective and appropriate steps to collect all money due, as required by Section 38(1) (c) (i) of the PFMA and TR 11.2.1, 15.10.1.2(a) and 15.10.1.2(e).

2012/13 The Department has since received a report from ECDC on all co-ops that are not servicing their loan debts and the Department will investigate each case.

Interest was not charged on debts as required by TR 11.5.1.

2012/13 The interest referred is in respect of co-op loans issued by ECDC. The Department is in a process of investigating the co-ops that are not paying. The interest has not been charged as a result of none compliant SLA that was since reviewed for the following financial years.

The Department has been found in contravention with the Treasury regulations by awarding 0% interest rate loans (co-op loans through ECDC).

10. INTERNAL CONTROL UNITThe Internal Control Directorate checks purchase orders and payments for compliance with internal controls, over and above the management review processes. The Directorate distributed the control documents to 465 staff of the Department and trained Fi-nancial Management staff on the Department’s internal controls to ensure understanding and uniform implementation of internal controls. At least 16 policy reviews were done by internal control directorate with a view to improve such policies.

The Department’s control environment is at a developmental stage, but relies a lot on the government policies and related control documents. There are internally developed internal controls within the Department as well.

The audit reports of the internal and external auditors have assisted the Department in identifying internal control weaknesses, over and above the risk assessments conducted within the Department.

The Department has continuously reviewed the existing policies and other documented internal controls. Some of these documents are still at draft stages; others have been approved and implemented in the year under review. However, more emphasis has been on the implementation of the internal controls. Therefore, the internal control directorate checks all the purchase orders, payments, subsistence and travel allowance claims for compliance prior to the issuing of orders and the payments there of.

The internal control directorate checks purchase orders and payments for compliance with internal controls, over and above the management review processes. The directorate distributed the control documents to 465 Department staff and trained financial management staff on the Department’s internal controls to ensure understanding and uniform implementation of internal controls. At least 16 policy reviews were done by internal control directorate with a view to improve such policies.



11. INTERNAL AUDIT AND AUDIT COMMITTEES

The Audit Committee performed its oversight function on risk management in every committee meeting. Governance structures have been operational in the 2012/13 financial year and the risk management committee sat at least four times.

However, the implementation of risk mitigation plans has been a tremendous challenge throughout the financial years, including 2012/13. However, the Department reached a maturity rating of 2.7 in this financial year, as opposed to the 2.4 obtained in the 2011/12 financial year.

The internal audit committee actively conducted an audit on the “follow up on implementation of the risk management action plans” and the opinion is that it was partially implemented. The internal audit opinion on financial management capability maturity model and corporate governance was “partial”.

In light of the above, it is apparent that risk management effectiveness within the Department is improving. The risk management committee has reviewed risk management implementation within the Department and issued reports for consideration by the accounting officer and the Audit Committee during the year under review. The audit of the effectiveness of risk management was conducted by the internal audit committee of the Department and found the Department lacking in the implementation of risk and fraud mitigation plans. That is consistent with the committee report, sighting challenges in the submission of portfolios of evidence to support implementation of risk management within the Department. The accounting officer is enhancing implementation of risk management through establishment of systems and capacity building.AUDIT

12. COMMITTEE REPORTOverview

We are pleased to present our report for the financial year ended 31 March 2014.

Audit Committee members and attendance

The Audit Committee consists of the members listed below. In accordance with its approved charter the Committee meets at least four times a year. During the period under review, four scheduled meetings and two special meetings were convened.Attendance of Audit Committee meetings by Audit Committee members was as follows:

Name of member Date appointed Number of meetings attended

Mr. Zola Fihlani (External Chairperson)

Appointed 22 July 2011 6 out of 6

Mr. Nala Mhlongo(External Member)


Mr. Luyanda Mangquku(External Member)


Mr. Bonginkosi Shangase(External Member)


Audit Committee responsibility

The Audit Committee reports that it has complied with its responsibilities arising from Section 38 (1) (a) (ii) of the Public Finance Management Act and Treasury Regulation 3.1.13. The Audit Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein.



The effectiveness of internal control

The Committee evaluated the internal control environment, and based on the information provided, assessed the internal controls as partially effective to mitigate related risks to an acceptable level.

Internal audit activity selected and prioritised the audit engagements for the year based on risk exposure, significance, and the quality of the control environment that exist to mitigate risks. Areas selected for audit included amongst others:

a. Performance information;

b. Financial statements review;

c. Transfer payments;

d. Asset management;

e. Records management;

f. Payment process;

g. Recruitment and selection; and

h. Follow up on the Auditor Generals previous audit findings.

Governance

Risk management

The Department has a Risk Management Unit which focuses on the identification, assessment, management and monitoring of risk. Based on the information provided, the Committee is satisfied that these risks were reduced to an acceptable level. The Department is implementing an enterprise risk management strategy which includes a fraud prevention plan.

Legal compliance

The Audit Committee reviewed the Department’s compliance with legal and regulatory provisions and ensured that processes are in place to monitor the level of compliance to laws and regulations within the Department.

Submission of in-year management and monthly/quarterly reports in terms of the PFMA and the Division of Revenue Act

The Audit Committee is satisfied with the content and quality of monthly and quarterly reports prepared and issued by the Accounting Officer and management during the year under review.

Evaluation of financial statementsThe Audit Committee -

a. Reviewed and discussed, with the Auditor General South Africa (AGSA) and the Accounting Officer, the audited annual financial statements to be included in the annual report;

b. Reviewed the AGSA’s management letter and management’s response to it;

c. Reviewed significant adjustments resulting from the audit;

d. Reviewed information on predetermined objectives to be included in the annual report.



e. Notes that there have been no changes in the accounting policies and practices; and

f. Is satisfied with the submission and quality of interim financial statements prepared by the Department.

The Audit Committee concurs with, and accepts, the AGSA’s conclusions on the annual financial statements and is of the opinion that the audited statements should be accepted and read together with the report of the AGSA.

Internal audit

The Committee is satisfied with the effectiveness of the internal audit function during the year and accepts that the internal audit activity has to a large extent addressed the risks pertinent to the Department.

External auditors

The Auditor-General was independent throughout the financial year under review, and the Audit Committee has met with the Auditor General to ensure that there are no unresolved issues.

The Audit Committee concurs and accepts the conclusions of the Auditor General on the annual financial statements and is of the opinion that the audited annual financial statements be accepted and read together with the report of the Auditor-General.

Appreciation

The Audit Committee expresses its appreciation to the Accounting Officer, the senior management team and the AGSA for their contributions during the year under review.

___________________________Mr Zola FihlaniChairperson: Audit CommitteeDate: 30 May 2014



1. LEGISLATURE THAT GOVERN HR MANAGEMENT The following pieces of legislation govern the activities of the human resource function in the department:

• The Constitution of the Republic of South Africa (Act 106 of 1996)• Public Service Act of 1994• Public Service Regulations Act of 2001• Labour Relations Act • Occupational Health and Safety Act• Basic Conditions of Employment Act • Skills Development Act

2. INTRODUCTION • The Human Management Units in the Department are responsible for management of staff performance, organisational

development, labour relations, employee wellness and employee benefits. The Human Resources (HR) Unit is also responsible for staff provisioning.

• The HR priorities for 2013/14 were the development of the HRD strategy, the business processes in the Department and the finalisation of the restructuring process.

• The Annual Recruitment Plan for 2013/14 focussed mainly in strengthening the Finance Units (Supply Chain Management, Finance and Internal Control). The recruitment of the legal advisor was also priorities in 2013/14.

• The provincial PMDS policy came into effect from 01 April 2013 and the Department is utilising that policy for this financial year.

• The Employee Wellness Strategy has since been approved and programmes have been rolled out in the Department. There has been much focus on employee health and wellness and sporting codes have been established in the Department.

• Six policies have been approved in the Department by the Executing Authority.

• The Department has been faced with a number of challenges including: attracting candidates for renewable energy, IGR and Public Entity Oversight. There are also delays in the finalisation of the restructuring process.

• Future HR plans include finalisation of the restructuring process and implementation of the Staff Transition Strategy.

3. HUMAN RESOURCE OVERSIGHT STATISTICS

3.1 Personnel Related Expenditure

The following tables summarises the final audited personnel related expenditure by programme and by salary bands. In particular, it provides an indication of the following:

• amount spent on personnel • amount spent on salaries, overtime, homeowner’s allowances and medical aid.



Table 3.1.1 Personnel expenditure by programme

Programme Total 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 154,698 88,128 0 0 57 147

Economic development 832,055 33,016 0 0 4 55

Environmental affairs 274,195 57,875 0 0 21,1 97

TOTAL 1 262,053 179,019 0 0 14,2 299

Table 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)

Skilled (level 3-5) 21 649 11,7 143 151 392

Highly skilled production (levels 6-8) 62 959 34,2 248

253 867

Highly skilled supervision (Levels 9-12) 59 675 32,4 148

403 209

Senior and top management (Levels 13-16) 23 927 13 30

797 567

Contract (Levels 3-5) 1 800 1 11 163 636

Contract (Levels 6-8) 968 0,5 5 193 600

Contract (Levels 9-12) 2 262 1,2 7 323 143

Contract (Levels 13-16) 5 215 2,8 6 869 167

Abnormal Appointment 516 0,3 21 24 571

Total 178 971 97,1 619 289 129

Table 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 a % of

Personnel Costs

Amount (R’000)

Overtime as a % of

Personnel Costs

Amount (R’000)

HOA as a % of

Personnel Costs

Amount (R’000)

Medical aid as a % of

Personnel Costs

Administration 66 186 73,9 301 0.3 3483 3,9 4483 5

Economic development 26 145 76,1 0 0 1056 3,1 1143 3,3

Environmental affairs 44845 74,3 12 0 1513 2,5 2404 4

TOTAL 137 176 74,4 313 0.2 6052 3,3 8030 4,4



Table 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 a % of

Personnel Costs

Amount (R’000)

Overtime as a % of

Personnel Costs

Amount (R’000)

HOA as a % of

Personnel Costs

Amount (R’000)

Medical Aid as a % of

Personnel Costs

Skilled (level 3-5) 14520 66,4 57 0,3 1404 6,4 2118 9,7

Highly skilled production (Levels 6-8) 46499 73,1 156 0,2 2403 3,8 3657 5,7

Highly skilled supervision (Levels 9-12 45850 73,4 72 0,1 1380 2,2 1930 3,1

Senior management (Levels 13-16) 19926 79,1 0 0 826 3,3 325 1,3

Total 126795 65,8 285 0,1 6013 3,1 8030 4,2

3.2 Employment and Vacancies

The tables in this section summarise the position with regard to employment and vacancies.

The following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment.

This information is presented in terms of three key variables:

• programme• salary band• critical occupations

Table 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 330 327 0,9 25

Economic development 95 94 1,1 11

Environmental affairs 191 177 7,3 18

Total 616 598 2,9 54



Table 3.2.2 Employment and vacancies by salary band

Salary band Number of Posts on Approved

Establishment

Number of Posts Filled Vacancy Rate Number of Employees Additional to the

Establishment

Skilled(3-5) 143 143 0 9

Highly skilled production (6-8) 262 248 5,3

11

Highly skilled supervision (9-12) 151 148 2

6

Senior management (13-16) 31 30 3,2

2

Contract (levels 3-5) 11 11 0 11




Total 616 598 2,9 54

Table 3.2.3 Employment and vacancies by critical occupations

Critical Occupations Number of Posts

Number of Posts

Filled

Vacancy Rate

Number of Posts Filled Additional to the Establishment

Administrative related, Permanent 44 44 0 6

Agricultural animal oceanography forestry & other science, Permanent 74 60 18,9 0

Agriculture related, Permanent 16 16 0 0

Bus and heavy vehicle drivers, Permanent 3 3 0 0

Cleaners in offices workshops hospitals etc., Permanent 41 41 0 0

Client inform clerks (switchboard, receptionist, information clerks), Permanent 7 7 0 0

Computer system designers and analysts.Permanent 2 2 0 0

Conservation labourers, Permanent 1 1 0 0

Economists, Permanent 2 2 0 3

Engineering sciences related, Permanent 1 1 0 0

Farming forestry advisors and farm managers, Permanent 3 3 0 0

Finance and economics related, Permanent 13 13 0 0

Financial and related professionals, Permanent 24 24 0 7

Financial clerks and credit controllers, Permanent 25 25 0 0

Head of Department/Chief Executive Officer, Permanent 2 2 0 1

Human resources & organisational development & relate prof. Permanent 20 18 10 0

Human resources clerks, Permanent 34 34 0 0

Human resources related, Permanent 4 4 0 0

Information technology related, Permanent 1 1 0 0

Language practitioners, interpreters & other communication, Permanent 3 3 0 0

Legal related, Permanent 1 1 0 0

Library mail and related clerks, Permanent 8 8 0 0



Critical Occupations Number of Posts

Number of Posts

Filled

Vacancy Rate

Number of Posts Filled Additional to the Establishment

Life sciences related, Permanent 1 1 0 0

Light vehicle drivers, Permanent 7 7 0 0

Logistical support personnel, Permanent 18 18 0 1

Material-recording and transport clerks, Permanent 4 4 0 0

Nature conservation and oceanographical related technician, Permanent 44 44 0 11

Other administrative, related clerks and organisers, Permanent 27 27 0 7

Other administrative policy and related officers, Permanent 28 28 0 0

Other information technology personnel. Permanent 4 4 0 0

Other occupations, Permanent 32 32 0 0

Regulatory inspectors, Permanent 7 7 0 0

Secretaries & other keyboard operating clerks, Permanent 43 43 0 0

Security guards, Permanent 21 21 0 9

Security officers, Permanent 3 3 0 0

Senior managers, Permanent 26 25 3,8 9

Trade/industry advisers & other related profession, Permanent 22 21 4,5 0

TOTAL 616 598 2,9 540

3.3 Job Evaluation

The following table summarises the number of jobs that were evaluated during the year under review. The table also provides statistics on the number of posts that were upgraded or downgraded.

Table 3.3.1 Job evaluation by salary band

Salary Band Number of Posts on

Approved Establishment

Number of Jobs

Evaluated

% of Posts Evaluated by Salary Bands

Posts Upgraded Posts downgraded

Number % of Posts Evaluated Number % of Posts

Evaluated

Lower skilled (Levels1-2)

Skilled (Levels 3-5) 152 0 0 0 0 0

Highly skilled production (Levels 6-8) 303 0 0 0 0 0

Highly skilled supervision(Levels 9-12) 159 0 0 0 0 0

Senior management Service band A 26 0 0 0 0 0

Senior management Service band B 5 0 0 0 0 0

Senior Management Service Band C 1 0 0 0 0 0



Salary Band Number of Posts on

Approved Establishment

Number of Jobs

Evaluated

% of Posts Evaluated by Salary Bands

Posts Upgraded Posts downgraded

Number % of Posts Evaluated Number % of Posts

Evaluated

Contract (Levels 3-5) 2 0 0

0 0 0


0 0 0


0 0 0

Contract (Band A) 5 0 0

0 0 0

Contract (Band B) 2 0 0 0 0 0

TOTAL 668

The following table provides a summary of the number of employees whose positions were upgraded due to their post being upgraded.

Table 3.3.2 Profile of employees whose positions were upgraded due to their posts being upgraded

Beneficiary African Asian Coloured White Total

Female 0 0 0 0 0

Male 0 0 0 0 0

Total 0 0 0 0 0

Employees with a disability 0

The following table summarises the number of cases where remuneration bands exceeded the grade determined by job evaluation. Reasons for the deviation are provided in each case.

Table 3.3.3 Employees with salary levels higher than those determined by job evaluation by occupation

Occupation Number of Employees Job Evaluation Level Remuneration Level Reason for Deviation

Security guard grade ii 1 3 4

Security officer 1 4 5

Administration clerk 1 5 6



Administrative officer 1 3 7




Personal assistant 1 5 7


Consumer advisor 1 7 8

Trade inspector chief 1 6 8

State accountant 1 7 8



Personal assistant 1 7 8





Accounting clerk 1 7 8

Personnel practitioner 1 7 8

Trade and industry advisor

1 7 8

Environmental officer production grade b

1 7 8


Administrative officer 1 7 8 OSD Appointment

Consumer advisor 1 7 8 OSD Appointment



Environmental officer production grade c

1 10 8


1 10 8


1 10 8


1 10 8 OSD Appointment



Environmental officer specialised production


State accountant 1 7 9 OSD Appointment

Personal assistant 1 7 9 OSD Appointment

Consumer advisor 1 7 9 OSD Appointment









































1 10 9


1 10 9


1 10 9


1 10 9


1 10 9


1 10 9


1 10 9


1 10 9


1 10 9


1 10 9


1 10 9


1 10 9

Assistant manager: efficiency services

1 9 10

Assistant manager: special programmes

1 9 10


1 9 10


1 9 10


1 9 10


1 9 10




Assistant manager: office support

1 9 10

Assistant manager: financial management

1 9 10

Assistant manager: human resources development

1 9 10

Assistant manager: human resource planning

1 9 10

Assistant manager: records management

1 9 10

Assistant manager: information system developer

1 9 10

Assistant manager: networks & help desk

1 9 10

Assistant manager: economic development

1 9 10


1 9 10


1 9 10


1 9 10


1 9 10


1 9 10

Assistant manager: internal auditor

1 9 10

Assistant manager: internal auditor

1 9 10

Assistant manager internal control

1 9 11

Manager: economic development

1 11 11

Environmental officer control grade b

1 12 11

Manager: special programmes

1 11 12

Manager: budget planning

1 11 12

Manager: supply chain management

1 11 12

Manager: tourism development

1 11 12

Manager: knowledge management

1 11 12

Manager: information system & development

1 11 12




Manager: IT management & automation

1 11 12


1 11 12


1 11 12


1 11 12


1 11 12


1 11 12


1 11 12


1 11 12


1 11 12

Manager: internal auditor

1 11 12


1 12 13

Head of Department 1 15 16

Percentage of total employed 18% (111/597)

The following table summarises the beneficiaries of the above in terms of race, gender, and disability.

Table 3.3.4 Profile of employees who have salary levels higher than those determined by job evaluation

Beneficiary African Asian Coloured White Total

Female 45 1 1 7 54

Male 47 1 0 9 57

Total 92 2 1 16 111

Employees with a disability - - - - -

Total Number of Employees whose remuneration exceeded the grade determined by job evaluation in 2013/14 111

3.4 Employment Changes

This section provides information on changes in employment over the financial year. Turnover rates provide an indication of trends in the employment profile of the department. The following tables provide a summary of turnover rates by salary band and critical occupations.



Table 3.4.1 Annual turnover rates by salary band

Salary Band Number of Employees at Beginning of Period-

April 2013

Appointments and Transfers into the

Department

Terminations and Transfers out of the

Department

Turnover Rmte

Skilled (Levels3-5) 148 0 6 4,1

Highly skilled production (Levels 6-8) 264 14 11 4,2

Highly skilled supervision (Levels 9-12) 134 4 2 1,5

Senior management Service bands A 23 2 1 4,3

Senior management Service bands B 5 0 0 0

Senior management Service bands C 0 0 0 0

Senior management Service bands D 1 0 1 100

Contracts 17 3 2 11,8

Total 592 23 23 3,9

Table 3.4.2 Annual turnover rates by critical occupation

Occupation

Employment at Beginning of

Period (April 2013)

Appointments Terminations Turnover Rate

Administrative related, Permanent 43 0 1 2,3

Agriculture animal oceanography forestry & other science, Permanent 56 12 5 8,9

Agriculture related, Permanent 17 0 0 0

Bus and heavy vehicle drivers, Permanent 3 0 0 0

Cleaners in offices workshops hospitals etc., Permanent 43 0 2 4,7

Client inform clerks (switchboard reception inform clerks), Permanent 8 0 1 12,5

Computer system designers and analysts. Permanent 2 0 0 0

Conservation labourers, Permanent 1 0 0 0

Economists, Permanent 1 1 0 0

Engineering sciences related, Permanent 1 0 0 0

Farming forestry advisors and farm managers, Permanent 3 0 0 0

Finance and economics related, Permanent 13 1 1 7,7

Financial and related professionals, Permanent 19 2 0 0

Financial clerks and credit controllers, Permanent 26 0 0 0

Human resources and organisational development & relate prof Permanent 18 1 0 0

Human resources clerks, Permanent 35 0 1 2,9

Human resources related, Permanent 3 1 0 0

Information technology related, Permanent 1 0 0 0



Occupation

Employment at Beginning of

Period (April 2013)

Appointments Terminations Turnover Rate

Language practitioners, interpreters & other community, Permanent 3 0 0 0

Legal related, Permanent 1 0 0 0

Library mail and related clerks, Permanent 8 0 0 0

Life sciences related, Permanent 1 0 0 0

Light vehicle drivers, Permanent 7 0 0 0

Logistical support personnel, Permanent 7 0 1 14,3

Material-recording and transport clerks, Permanent 4 0 0 0

Nature conservation and oceanographical related technician, Permanent 49 0 2 4,1

Other administrative, related clerks and organisers, Permanent 26 0 0 0

Other administrative policy and related officers, Permanent 31 0 1 3,2

Other information technology personne, Permanent 3 2 1 33,3

Other occupations, Permanent 32 0 0 0

Regulatory inspectors, Permanent 7 0 0 0

Secretaries & other keyboard operating clerks, Permanent 47 0 2 4,3

Security guards, Permanent 24 0 2 8,3

Security officers, Permanent 2 0 0 0

Senior managers, Permanent 28 2 3 10,7

Trade/industry advisers & other related profession, Permanent 19 1 0 0

TOTAL 592 23 23 3,9

The table below identifies the major reasons why staff have left the Department

Table 3.4.3 Reasons why staff have left the Department

Termination Type Number % of Total ResignationsDeath 3 13Resignation 14 60,9Expiry of contract 1 4,3Retirement 5 21,7TOTAL 23 100Total number of employees who left as a % of total employment 3,9



Table 3.4.4 Promotions by critical occupation

Occupation

Employment at Beginning

of Period (April 2013)

Promotions to Another

Salary Level

Salary Level Promotions

as a % of Employment

Notch Progressions

as a % of Employment

Administrative related 43 2 4,7 69,8

Agricultural animal oceanography forestry & other science 56 1 1,8 69,6

Agriculture related 17 0 0 82,4

Bus and heavy vehicle drivers 3 0 0 100

Cleaners in offices workshops hospitals etc. 43 0 0 90,7

Client inform clerks (switchboard, receptionist, information clerks) 8 0 0 87,5

Computer system designers and analysts 2 0 0 100

Conservation labourers 1 0 0 100

Economists 1 0 0 0

Engineering sciences related 1 0 0 100

Farming, forestry advisors and farm managers 3 0 0 66,7

Finance and economics related 13 1 7,7 46,2

Financial and related professionals 19 1 5,3 63,2

Financial clerks and credit controllers 26 0 0 61,5

Head of Department/Chief Executive Officer 0 0 0 0

Human resources, organisational development & relate prof 18 3 16,7 61,1

Human resources clerks 35 0 0 88,6

Human resources related 3 0 0 33,3

Information technology related 1 0 0 100

Language practitioners, interpreters & other communication 3 0 0 66,7

Legal related 1 0 0 100

Library mail and related clerks 8 0 0 87,5

Life sciences related 1 0 0 100

Light vehicle drivers 7 0 0 100

Logistical support personnel 7 1 14,3 71,4

Material-recording and transport clerks 4 0 0 75

Nature conservation and oceanographical related technicians 49 0 0 63,3

Other administrative, related clerks and organisers 26 0 0 69,2

Other administrative policy and related officers 31 0 0 71

Other information technology personnel 3 0 0 66,7

Other occupations 32 0 0 84,4

Regulatory inspectors 7 0 0 85,7

Secretaries & other keyboard operating clerks 47 0 0 70,2

Security guards 24 0 0 91,7

Security officers 2 0 0 150

Senior managers 28 0 0 64,3

Trade/industry advisers & other related profession 19 1 5,3 89,5

TOTAL 592 10 1,7 74,7



Table 3.4.5 Promotions by salary band

Salary BandEmployment at

Beginning of Period (April 2013)

Promotions to Another Salary Level

Salary Level Promotions as a % of

Employment

Progressions to Another Notch within

Salary Level

Skilled (Levels 3-5), Permanent 148 1 0,7 130

Highly skilled production (Levels 6-8), Permanent 264 1 0,4 184

Highly skilled supervision (Levels 9-12), Permanent 134 7 5,2 108

Senior management (Levels 13-16), Permanent 29 1 3,4 12

Contract (Levels 3-5), Permanent 1 0 0 1




TOTAL 592 10 1,7 442

3.5 Employment Equity

Table 3.5.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as at 31 March 2014

Occupational Categories Male, African

Male, Co-

loured

Male, Indian

Male, Total

Blacks

Male, White

Fe-male, Afri-can

Fe-male,

Co-loured

Fe-male,

In-dian

Fe-male, Total

Blacks

Fe-male, White

Total

Legislators, senior officials and managers, Permanent 17 0 0 17 1 10 0 0 10 1 29

Professionals, Permanent 72 3 1 76 12 77 1 1 79 4 171

Technicians and associate professionals, Permanent 62 0 0 62 8 63 0 0 63 4 137

Clerks, Permanent 41 1 0 42 0 98 3 0 101 5 148

Service and sales workers, Permanent 21 1 0 22 0 9 0 0 9 0 31

Plant and machine operators and assemblers, Permanent 10 0 0 10 0 0 0 0 0 0 10

Elementary occupations, Permanent 26 0 0 26 3 40 2 0 42 1 72

Employees with disabilities 5 0 0 5 0 0 0 0 0 0 5

TOTAL 249 5 1 255 24 297 6 1 304 15 598



Table 3.5.2 - Total number of employees (incl. employees with disabilities) per occupational bands as at 31 March 2014

Occupational Bands Male, Afri-can

Male, Co-

loured

Male, Indian

Male, Total

Blacks

Male, White

Fe-male, Afri-can

Fe-male,

Co-loured

Fe-male, Indian

Fe-male, Total

Blacks

Fe-male, White

Total

Top management, Permanent 2 0 0 2 0 0 0 0 0 0 2

Senior management, Permanent 13 0 0 13 4 9 0 0 9 2 28

Professionally qualified and experienced specialists and mid-management, Permanent 64 1 1 66 17 61 0 1 62 3 148

Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 91 2 0 93 3 139 4 0 143 9 248

Semi-skilled and discretionary decision making, Permanent 66 1 0 67 0 73 2 0 75 1 143

Contract (senior management), Permanent 4 1 0 5 0 1 0 0 1 0 6

Contract (professionally qualified), Permanent 5 0 0 5 0 2 0 0 2 0 7

Contract (skilled technical), Permanent 2 0 0 2 0 3 0 0 3 0 5

Contract (semi-skilled), Permanent 2 0 0 2 0 9 0 0 9 0 11

TOTAL 249 5 1 255 24 297 6 1 304 15 598

Table 3.5.3 Recruitment


Male, Co-

loured

Male, Indian

Male Total

Male, White

Fe-male, Afri-can

Fe-male,

Co-loured

Fe-male, Indian

Fe-male, Total

Blacks

Fe-male, White

Total





Contract (professionally qualified), Permanent 1 0 0 1 0 1 0 0 1 0 2

TOTAL 5 2 0 7 3 11 1 0 12 1 23





Male, Co-

loured

Male, Indian

Male Total

Male, White

Fe-male, Afri-can

Fe-male,

Co-loured

Fe-male, Indian

Fe-male, Total

Blacks

Fe-male, White

Total





Contract (skilled technical), Permanent 1 0 0 1 0 0 0 0 0 0 1


Employees with disabilities 5 0 0 5 0 0 0 0 0 0 5

TOTAL 174 4 1 179 18 241 5 1 247 8 452

Table 3.5.5 - terminations


Male, Co-

loured

Male, Indian

Male, Total

Blacks

Male, White

Fe-male, Afri-can

Fe-male,

Co-loured

Fe-male, Indian

Fe-male, Total

Blacks

Fe-male, White

Total







TOTAL 11 1 0 12 0 11 0 0 11 0 23

Table 3.5.4 – Promotions



Table 3.5.6 Disciplinary action

Disciplinary Action

Male Female

African Coloured Indian White African Coloured Indian White Total

TOTAL 15 0 0 2 3 0 0 0 20

Table 3.5.7 Skills development

Occupational Category

Male Female

African Coloured Indian White African Coloured Indian White Total

Legislators, senior officials and managers

1 3 4

Professionals 0 0 0 0 1 0 0 0 1

Technicians and associate professionals

0 0 0 0 0 0 0 0 0

Clerks 10 0 0 0 21 0 0 0 31

Service and sales workers

1 0 0 0 0 0 0 0 1

Skilled agriculture and fishery workers

0 0 0 0 0 0 0 0 0

Craft and related trades workers

0 0 0 0 0 0 0 0 0

Plant and machine operators and assemblers

0 0 0 0 0 0 0 0 0

Elementary occupations

0 0 0 0 0 0 0 0 0

Employees with disabilities

1 0 0 0 0 0 0 0 1

Total 13 0 0 0 25 0 0 0 37

3.6 Performance Rewards

To encourage good performance, the Department has granted the following performance rewards during the year under review. The information is presented in terms of race, gender, and disability, and salary bands and critical occupations.

Table 3.6.1 Performance rewards by race, gender and disability

Race and Gender Beneficiary Profile Cost

Number of beneficiaries

Number of employees

% of Total within group

Cost (R) Average cost per employee

African, Male 179 263 68% 561 295.89 3, 135.73

Asian, Male 1 1 100% 9 918.05 9, 918.05

Coloured, Male 3 3 100% 8 310.47 2, 770.15

White, Male 17 20 85% 87 808.50 5,165.20



Race and Gender Beneficiary Profile Cost


Number of employees

% of Total within group

Cost (R) Average cost per employee

African, Female 234 309 76% 664 927.56 2, 841.57

Asian, Female 1 1 100% 4 630.59 4, 630.59

Coloured, Female 1 1 100% 2 627.91 2, 627.91

White, Female 14 20 70% 51 879.65 3, 705.68

TOTAL 450 617 73% 1 391 398.61 3, 091.99

Table 3.6.2 Performance rewards by salary band for personnel below senior management service

Salary Band Beneficiary Profile Cost


Number of employees

% of Total within salary bands

Total cost (R) Average cost per employee

Total cost as a % of the total personnel

expenditure

Lower skilled (Levels 1-2) 0 0 0 0 0 0

Skilled (Level 3-5) 108 184 59% 169 525.51 1, 569.68 1%

Highly skilled production (Level 6-8)

243 307 79% 656 012.81 2, 715.76 1.4%

Highly skilled supervision (Level 9-12)

99 126 79% 565 860.29 5,715.76 1.1%

Total 450 617 73% 1 391 398.61 3, 091.99 1.2%

Table 3.6.3 Performance rewards by critical occupation

Critical Occupation Beneficiary Profile Cost


Number of employees

% of Total within

occupation

Total cost (R) Average cost per employee

SMS Level 13 to 14 18 34 52.9% 206 219.52 11 456.64

Total

Notes:The CORE classification, as prescribed by the DPSA, was used for completion of this table.



Table 3.6.4 Performance related rewards (cash bonus), by salary band for senior management service

Salary Band Beneficiary Profile Cost


Number of employees

% of Total within salary bands

Total cost (R’000) Average cost per employee

Total cost as a % of the total

personnel expenditure

Band A 2 34 5.8% 76 299 39 731 0.06%

Band B

Band C

Band D

Total

3.7 Foreign Workers

The tables below summarise the employment of foreign nationals in the Department in terms of salary band and major occupation.

Table 3.7.1 Foreign workers by salary band

Salary Band 01 April 2013 31 March 2014 Change

Number % ofTotal Number % of Total Number % Change

Highly skilled production (Lev. 6-8)

0 0 0 0 0 0

Highly skilled supervision (Lev. 9-12)

1 0 1 0 0 0

Contract (Level 9-12)

1 0 1 0 0 0

Contract (Level 13-16)

0 0 0 0 0 0

Total 2 0 2 0 0 0

Table 3.7.2 Foreign workers by major occupation

Major Occupation

01 April 2013 31 March 2014 Change

Number % of Total Number % of Total Number % Change

Senior management

0 0 0 0 0 0

Middle management

2 0 2 0 0 0

3.8 Leave Utilisation

The Public Service Commission identified the need for careful monitoring of sick leave within the public service. The following tables provide an indication of the use of sick leave and disability leave. In both cases, the estimated cost of the leave is also provided.



Table 3.8.1 Sick leave

Salary Band Total Days

% Days with Medical

Certification

Number of Employees using Sick

Leave

% of Total Employees using Sick

Leave

Average Days per

Employee

Estimated Cost

(R’000)

Total number of Employees

using Sick Leave

Skilled (Levels 3-5) 1324 78,8 134 28 10 523 478

Highly skilled production (Levels 6-8) 1654 75 207 43,3 8 1 184 478

Highly skilled supervision (Levels 9-12) 775 76,6 107 22,4 7 1 019 478

Senior management (Levels 13-16) 118 86,4 19 4 6 361 478

Contract (Levels 3-5) 31 54,8 7 1,5 4 13 478

Contract (Levels 6-8) 8 62,5 2 0,4 4 5 478

Contract (Levels 13-16) 8 100 2 0,4 4 23 478

TOTAL 3918 76,8 478 100 8 3128 478

Table 3.8.2 Disability leave (temporary and permanent)

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)

Total Number of Days With Medical Certification

Total Number of Employees Using Disability Leave

Highly skilled production (Levels 6-8) 187 100 3 50 62 149 187 6

Highly skilled supervision (Levels 9-12) 135 100 3 50 45 171 135 6

TOTAL 322 100 6 100 54 320 322 6

The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000, requires the management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service.

Table 3.8.3 Annual leave

Salary Band Total Days Taken Average Days per Employee Number of Employees who Took leave

Skilled (Levels 3-5) 3709,03 25 148

Highly skilled production (Levels 6-8) 5556 21 262

Highly skilled supervision (Levels 9-12) 3609 24 150

Senior management (Levels 13-16) 590 21 28





TOTAL 13812,03 22 614



Table 3.8.4 Capped leave

Salary Band Total Days of Capped Leave

Taken

Average Number of Days Taken

per Employee

Average Capped Leave per

Employee as at 31 December

2013

Number of Employees who took

Capped Leave

Total Number of Capped Leave Available at 31

December 2013

Number of Employees as

at 31 December 2013

Skilled (Levels 3-5) 8 3 78 3 7532 96

Highly skilled production (Levels 6-8) 7 2 93 3 7918 85

Highly skilled supervision (Levels 9-12) 6 6 91 1 6461 71

TOTAL 21 3 87 7 21911 252

The following table summarise payments made to employees as a result of leave that was not taken.

Table 3.8.5 Leave pay-outs

Reason Total Amount (R’000)

Number of Employees Average Payment per Employee (R)

Leave pay-out for 2012/13 due to non-utilisation of leave for previous cycle

0 0

Capped leave pay-outs on termination of service for 2013/14

668,380.80 5 33,676.16

Current leave pay-out on termination of service for 2013/14

422,733.28 11 38,430.30

TOTAL 1,091,114.08

3.9 HIV/AIDS & Health Promotion Programmes

Table 3.9.1 Steps taken to reduce the risk of occupational exposure

Units/Categories of Employees Identified to be at High Risk of Contracting HIV & Related Diseases (if any)

Key Steps Taken to Reduce the Risk

No employees have been identified as being at higher risk than others -



Table 3.9.2 Details of health promotion and HIV/AIDS programmes (tick the applicable boxes and provide the required information)

Question Yes No Details, if Yes

1. Has the Department designated a member of the 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 Nosipho XhegoDirector: HR Planning & Practises

2. Does the Department have a dedicated unit, or has it designated specific staff members, to promote the health and well-being of 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 Three employees ( 1 Deputy Director, 1 Assistant Director, plus 1 practitioner)No specific budget, but utilising budget available from HRPP.

3. Has the Department introduced an Employee Assistance or Health Promotion Programme for employees? If so, indicate the key elements/services of this Programme.

Yes Wellness Management (EAP) which includes counselling;Health & Productivity Management which includes Health Risk Assessments (HRAs), IOD & PILIR;HIV & AIDS and TB Management which includes HCT, care and support;Safety, Health, Environment, Risk and Quality Management (Risk Assessments and Hazard Identification)

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 It is an all-encompassing Employee Health and Wellness Committee that looks into all the health and safety issues of the Department. Ms N. Xhego - HRPPMs B. Guqaza -EHWMs N. Zingan i- EHWMs. L. Bula - FinanceMr A. Dlomo - Strategic Planning & Information ManagementMr B. Masika - Risk ManagementMr V. Nghona - SPUMr S. Mpetshen i- Labour RelationsMr M. Mgqabhuzana - Security ManagementMs N. Radebe- Office ManagementMrs C. Ferreira - Economic DevelopmentMr L. Mardo n- Environmental AffairsOrganised Labour: PSA - Mr S. SicikoOrganised Labour: NEHAWU - Mr N. DakaReps from worksite wellness committees:Mr Z. Mntumni - AmatholeMr Sidumo - Chris HaniMs N. Nomzaza - Alfred NzoMs N. Mampofu - OR TamboMr D. Rademeyer - CacaduMs S. Mtongana - Joe GqabiMr T. Kraai - Head Office

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 An HIV & AIDS and TB Policy have been developed and is awaiting consultation and endorsement.

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 Conducted awareness campaigns on living with HIV & AIDS;Trained Peer Educators to assist such employees with care and support.



Question Yes No Details, if Yes

7. Does the Department encourage its employees to undergo voluntary counselling and testing? If so, list the results that have you achieved.

Yes There is still a challenge in the number of employees who undergo HCT. We are in the process of ensuring that both the HCT and the HRA are done by the same nurse to remove stigma and fear that is observed when HCT is done in a separate room.

8. Has the Department developed measures/indicators to monitor & evaluate the impact of its health promotion programme? If so, list these measures/indicators.

No This is still a challenge due to lack of capacity

3.10 Labour Relations

Table 3.10.1 Collective agreements

Subject Matter DateNot applicable

The following table summarises the outcome of disciplinary hearings conducted within the Department for the year under review.

Table 3.10.2 Misconduct and disciplinary hearings finalised

Outcomes of Disciplinary Hearings Number % of Total

Counselling referral 2 8.33

Written warning 5 20.83

Final written warning 8 33.33

Suspensions 4 16.66

Withdrawals 3 12.5

Pending 2 8.33

Total 24 100

Table 3.10.3 Types of misconduct addressed at disciplinary hearings

Type of misconduct Number % of Total

Assault 1 4.16

Insubordination 2 8.33

Misuse of vehicle 4 16.66

Unbecoming conduct 3 12.5

Unauthorised removal of state asset 1 4.16

Unauthorised absence from the work station

2 8.33

Poor performance 3 12.5

Negligence 1 4.16

Giving false information 3 12.5

Under the influence of liquor at work 1 4.16

Failure to carry lawful instruction 2 8.33

Bringing the organisation into disrepute 1 4.16

TOTAL 24 100



Table 3.10.4 Grievances logged

Number % of Total

Not resolved 19 86.36

Resolved 3 13.64

TOTAL 22 100

Table 3.10.5 Disputes logged

Number % of Total

Number of disputes upheld 0 0

Number of disputes dismissed 0 0

Total number of disputes lodged 0 0

Table 3.10.6 Strike actions

Total number of persons working days lost 0

Total costs working days lost 0

Amount (R’000) recovered as a result of no work no pay 0

Table 3.10.7 Precautionary suspensions

Number of people suspended 1

Number of people whose suspension exceeded 30 days 1

Average number of days suspended 115

Cost (R’000) of suspension 62

3.11 Skills Development

This section highlights the efforts of the Department with regard to skills development.

Table 3.11.1 Training needs identified


Gender Number of Employees as at

1 April 2012

Training Needs Identified at Start of the Reporting Period

Learnership Skills Programmes

& Other Short Courses

Other Forms of Training

Total


Female 36 0 11 16 63

Male 71 0 7 22 100

Professionals Female 63 0 3 3 69

Male 91 0 3 3 97


Female 41 0 0 1 42

Male 32 0 0 2 34

Clerks Female 91 0 64 32 187

Male 120 0 30 15 165





1 April 2012

Training Needs Identified at Start of the Reporting Period




Total


Female 0 0 0 0 0

Male 0 0 0 0 0


Female 0 0 0 0 0

Male 0 0 0 0 0


Female 0 0 0 0 0

Male 0 0 0 0 0


Female 0 0 0 0 0

Male 12 0 0 0 12


Female 30 2 0 30 62

Male 21 1 0 16 38

Sub Total Female 261 2 78 82 423

Male 335 1 40 58 434

Table 3.11.2 Training provided for the period



1 April 2013

Training Provided within the Reporting Period




Total


Female 29 0 11 0 40

Male 36 0 11 0 47

Professionals Female 22 0 7 0 29

Male 37 0 7 0 44


Female 0 0 0 0 0

Male 1 0 1 0 2

Clerks Female 31 0 13 0 44

Male 16 0 13 0 29


Female 0 0 0 0 0

Male 0 0 0 0 0


Female 0 0 0 0 0

Male 0 0 0 0 0





1 April 2013

Training Provided within the Reporting Period




Total


Female 0 0 0 0 0

Male 0 0 0 0 0


Female 0 0 0 0 0

Male 0 0 0 0 0


Female 0 0 0 0 0

Male

Sub Total Female 82 0 31 0 113

Male 90 0 32 0 122

Total 172 0 63 0 235

3.12 Injury on Duty

The following tables provide basic information on injury on duty.

Table 3.12.1 Injury on duty

Nature of Injury on Duty Number % of total

Required basic medical attention only 0 0

Temporary total disablement 0 0

Permanent disablement 0 0

Fatal 0 0

Total 0 0

3.13 Utilisation of Consultants

Table 3.13.1 Report on consultant appointments using appropriated funds

Project Title Total Number of Consultants That Worked on Project

DurationWork Days

Contract Value inRand

HRD strategy 3 60 438,646

Business processes 4 180 3,817,848

Organisational review 1 70 439,660

Total Number of Projects Total Individual Consultants Total DurationWork Days

Total Contract Value in Rand

3 8 310 R4,696,154



Table 3.13.2 Analysis of consultant appointments using appropriated 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

Restructuring

HRD strategy

Business processes

Table 3.13.3 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

Total Number of Projects Total Individual Consultants Total DurationWork Days

Total Contract Value in Rand

N/A

Table 3.13.4 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

HRD strategy 2

Restructuring 0



1. REPORT OF THE ACCOUNTING OFFICER

Report by the Accounting Officer to the Executive Authority and the Provincial Legislature of the Republic of South Africa.

1.1 General review of the state of financial affairs

1.1.1 Important policy decisions and strategic issues facing the Department

During the past five years and the last financial year in particular, the Department continued to focus on seven key policy areas as follows:

Realignment & streamlining of the DEDEAT & its public entities: The DEDEAT group had been characterised by inefficiencies and ineffectiveness due to many factors. A decision was made to develop the public entity oversight and other alignment functions to improve efficiencies.

Rapid advancement of rural development: The Apartheid-created spatial distortions and poverty continue to haunt the Province. Part of the work of the Department involved supporting seven small towns through the small towns revitalisation programme. The LRED programme continued to provide funding and support to economic activities aligned to the industrial development strategy throughout the province. A concerted effort was made to promote and develop the Integrated Wild Coast Programme (IWCDP) under the same policy pillar.

Management and protection of the natural environment: With record poaching of rhinos in the country and increased degradation of the natural environment, the Department increased its efforts to manage the ecosystem. Climate change is poised to impact the province hence the need to implement mitigation and adaptation measures.

Protection, diversification and expansion of our manufacturing and services sectors: With the energy security overhang, the Department supported sustainable energy activities, the two industrial development zones (ELIDZ and Coega), green economy implementation, and tourism. The Department continued with investment in public infrastructure and industry support.

Achieving a sustainable balance between economic growth and responsible use of land and natural resources: This policy pillar was a response to the over-exploitation of land and natural resources. Economic development has to be sustainable otherwise future generations will not benefit from the resources of the province.

Creating an enabling regulatory function: The ease of doing business in the province is poor, primarily due to lack of economic infrastructure, logistics, and by-laws among other factors. Citizens are negatively impacted by illegal liquor trading and gambling. Consumers of goods and services are also challenged in transacting in the market place, which in some cases, exploit them.

Creating an enabling environment to support enterprise development: With limited manufacturing activity and jobs in the province, it became necessary to continue focussing on SMME development and tourism promotion.

1.1.2 Significant events that have taken place during the year

The year 2013/14 has been significant primarily because it was the last year of the political cycle. It was an important year as the Department prepared for the last year of the strategic cycle running from 2010/11 to 2014/15. During the year the following key events took place:



i. In June 2013, the Department entered into a collaboration agreement with SEDA for the purposes of developing the business initiative of entrepreneurs in the Eastern Cape Province.

ii. As part of the GIZ Green Skills Partnership, a Green Skills stand was provided at the Joe Gqabi Career Expo in Aliwal North on the 19th of June 2013. The second gathering of the Provincial Green Skills Forum for the Eastern Cape was convened in East London on 11 September 2013. DEDEAT also co-hosted the Eastern Cape Energy Efficiency Conference (under the auspices of the South African Association for Energy Efficiency) on 16 May 2013. A workshop was held in Somerset East in October 2013 with the purpose of informing municipal stakeholders on how to engage with Independent Power Producers and the regulations of the Renewable Energy Independent Power Produce Programme. In lieu of the sustainable energy forum, DEDEAT hosted the Department of Environmental Affairs provincial consultation on the National Wind and Solar Strategic Environmental Assessment for Renewable Energy Development Zones on 4 December 2013.

iii. Other collaborative work with Transnet continued with the strategic planning forum meeting being convened on 23 June 2013.

iv. Radio interviews were undertaken on 19 April 2013, 7 June 2013 and 21 June 2013 at the Unitra Community Radio regarding the service for general consumer advice and tips.

v. Non-automotive manufacturing and automotive manufacturing stakeholder engagements were held on the 4 June 2013 for information sharing and review of final draft reports. The non-automotive manufacturing and automotive manufacturing stakeholder forums held consultative workshops with the furniture manufacturing enterprises on 6 and 13 September 2013 and a task team was formed. A final meeting was held on 22 January 2014 to close out the service level agreements (SLAs) with all business chambers in the Eastern Cape.

vi. The Zone 4 Casino final RFP was issued during September 2013 and public hearing sessions were conducted for Site A and B gambling licenses.

vii. The tourism programme successfully hosted through the ECPTA, the Spec Savers Ironman South Africa on the 14 April 2013 in Nelson Mandela Bay. The National Tourism Careers’ Expo, was successfully hosted from 19 to 21 September 2013 at the East London International Convention Centre. The first provincial inaugural Lizella Awards which was hosted in Port Elizabeth in August is recognised as a “benchmark for excellence” in the tourism industry. The Africa Open Golf Challenge at the East London Golf Club from 13 to 16 February 2014, had a significant impact in terms of sports tourism promotion and contribution to the local economy.

viii. During September 2013 a joint environmental enforcement operation was performed with the South African Police, Department of Agriculture Forestry’s and Fisheries, and Ndlambe Local Municipality. A public participation meeting for the development of the Nahoon Estuary Management Plan was held in September 2013 in East London. The outcomes for an Environmental Empowerment/Education/Social Mobilisation Project on the Wild Coast Environmental Management Plan were presented for approval to management in July 2013.

ix. The Department hosted a Provincial Recycling Indaba on 29 January 2014 at the ELICC with a theme “Don’t Waste, Recycle” which provided a platform for all key stakeholders to discuss and agree on a provincial trajectory to stimulate appropriate and meaningful recycling culture for the province. The final Eastern Coastal Management Programme was gazetted on 26 March 2014 by government printers. Coastal zone management staff attended and participated in COP 11 Abidjan Convention in Cape Town, from 18 to 20 March 2014.

x. The Regional and Provincial Environmental Awards were held and the themes were “Ecosystem services and human well-being, sustaining our needs but not greed” for primary section and “Renewable energy options – a solution to Eastern Cape poverty” for secondary school category. The Provincial Greenest Municipality Competition was held in Port Alfred and the provincial winner will participate in the National Competition. National Environmental Day celebrations were held in different regions of the province and various stakeholders participated.



xi. On 11 March 2014 the Department and NMMU hosted a dialogue on shale gas which brought together government, academics and state-owned enterprises to discuss critical issues associated with the exploration and possible exploitation of shale gas in the Karoo. The dialogue followed the signing of an agreement between the Department and the University on a R16 million research project that will conduct a technical evaluation and socio-economic analysis of shale gas in the Eastern Cape. Conservative to optimistic estimates of the recoverable gas range between 20 and 485 trillion cubic feet with a potential return of between 1 to 20 trillion Rand as well as undetermined savings in carbon taxes. The study will provide advice to the provincial government on a regular basis on scientific and socio-economic findings and deliver a unique and independent set of cutting-edge data to inform regional and national planning. The project will also provide provincial government with an independent scientific monitoring capability to generate information to frame its policy and strategic approaches to this massive economic development resource.

1.1.3 Major projects undertaken or completed during the year

i. The Department in partnership with a host of national and provincial departments and municipalities, continued with interventions to address rampant poverty and underdevelopment.

ii. The key intervention is the Integrated Wild Coast Development Programme, aimed at crowding-in public and private sector investment around transport and bulk infrastructure, addressing land administration bottlenecks, promoting urban nodal development, and creating jobs through agricultural and tourism development.

iii. In pursuance of the development of the Wild Coast region, the Department hosted an integrated wild coast summit which included the participation of four national ministries, traditional leaders and mayors from the affected district municipalities.

iv. The Department hosted a Global Innovation Forum in partnership with the World Bank and the Department of Science and Technology. Over 20 countries participated.

v. The Presidential Infrastructure Co-ordinating Commission’s (PICC) second ‘Infrastructure Implementation Plan’ includes 18 strategic infrastructure projects (SIPs) across all three spheres of government. SIP-3 comprises projects designed to bolster the Eastern Cape’s industrial and agricultural development and export capacity. Some progress on the SIP-3 initiatives, including the construction of a dam on the Umzimvubu River, and the N2 road has been recorded.

vi. The Department continues to engage proactively with state owned entities such as Transnet, ESKOM, SANRAL, Broadband Infraco, and others, to leverage their infrastructure spend in support of the Department’s key strategic projects.

vii. The final draft of the Wild Coast Environmental Management Plan was presented at the Provincial Integrated Wild Coast Development Summit to various stakeholders for alignment with municipalities and other government departments who are planning tools for the area.

viii. The Department led the development of Alfred Nzo District Municipality Climate Change Mainstreaming into the municipality IDP.

ix. Through the implementation of the Eastern Cape Parks and Tourism Agency’s EPWP infrastructure projects, and the Department funded environment sector projects, more than 900 work opportunities were created.

x. A successful provincial Recycling Indaba was held in East London where a number of stakeholders participated in the deliberations around three thematic areas.

xi. The Department in partnership with the Department of Environmental Affairs, Department of Water Affairs, district municipalities (OR Tambo, Alfred Nzo and Joe Gqabi) and local municipalities mobilised resources in preparation for the launch of Umzimvubu Water Catchment Management Project, which is part of Strategic Infrastructure Project (SIP3).

The Department has developed the Local and Regional Economic Development (LRED) funding policy and mandate, LRED funding criteria and guidelines which created the DEDEAT LRED Fund. Through the LRED fund, the Department approved and supported 14 LRED projects in the 2013/14 financial year. An amount of R28,827 million was transferred in advance, directly to beneficiaries. One of the great achievements under the LRED Fund has been Ikusasa Green Manufacturing Plant in Stutterheim, which has been supported with R3 million. Ikusasa Green Manufactures roto-moulded cooler boxes ensuring a stronger,



more durable, hygienic and green product. This initiative will bring significant benefits to the regional economy. Through this investment from the LRED Fund, Ikusasa Green has signed a deal with retail giant Massmart, which will see Ikusasa providing Massmart with 700 units.

xii. The Department has entered into a collaboration agreement with SEDA for the purposes of developing the business initiatives of entrepreneurs in the Eastern Cape Province and DEDEAT funded LRED projects in particular, with the view to promote and grow them, in the process creating sustainable jobs and supporting economic development in the Eastern Cape Province. The intention was that both parties will work together in promoting the establishment and development of local and regional economic development partnerships in the Eastern Cape Province and provide skills development to entrepreneurs.

1.2 Spending Trends per Programme

Programmes Final Appropriation Actual Expenditure Variance Expenditure as % of Final Appropriation

R’000 R’000 R’000 %

Administration



Payment for capital assets

20 903 14 882 6 021 71.2%

Payment of financial assets

- 351 -351 -

Total 205 789 185 141 20 648 89.9%





10 8 2 80.0%


-

Total 887 573 881 037 6 536 84.69%





- - -


- - -

Total 293 113 285 986 7 127 97.6%

Subtotal 1 386 475 1 352 164 34 311 97.5%

Statutory Appropriation

Current payments 1,652 1,652 -

Transfers and subsidies - - -


- - -


- - -

Total 1 388 127 1 353 818 34 311 97.5%



Reason for under spending

The Department of Economic Development, Environmental Affairs and Tourism underspent by 2.5% because of the following:

a. Compensation of employees

The Department had anticipated that the restructuring process will be finalised in the 2013/14 financial year. The delay had resulted in the delay in the filling of a number of critical posts in particular the unavailability of professional staff (sector specialists and environmental specialists); these were later approved as contract posts additional to the establishment.

b. Goods and services

The reasons for the under expenditure on goods and services are attributable to two areas: Firstly, the late submission of invoices or the submission of incorrect invoices by service providers; and secondly, delays in the finalisation of some projects. Despite efforts by the department to ensure that most outstanding invoices were submitted by suppliers before year end, many were not received. This was particularly the case with universities and travel agents. A number of invoices also had to be returned back to the suppliers as they were identified as being inconsistent with the orders in terms of the recorded amounts. For various reasons, the initiation of some projects started later than planned. More specifically, the following projects were affected by the projects not yet been finalised by year end. The projects will spill over into the 2014/15 financial year:

• Eastern Cape Liquor and Gambling legislative reviews• Policy development for Consumer Protection• Gazetting of the EC Coastal Management Programme • Implementation of the Nelson Mandela Bay Metropolitan Municipality coastal setback lines

c. Payment of capital assets

Under expenditure on capital assets is due to the non-procurement of motor bikes for the green scorpions and the late procurement of the furniture for the regional offices. The under spending on capital expenditure relates to the non-procurement of laptops and vehicles for senior vacancies that were not filled during the year. Included in the 2013/14 budget was the anticipation of more staff hence laptops and fleet were budgeted for. These vacancies will be filled in the 2014/15 financial year.

Actions taken or planned to avoid recurrence

The SCM unit has scheduled all procurement in line with the different programmes’ approved procurement plans. The submission of annual terms of reference has been scheduled to be on, or before, the end of May 2014 in order to plan accordingly and avoid delays in the procurement of services.

Virements

The virements were approved by the Accounting Officer. The Provincial Treasury was copied in the correspondence, in line with the regulations and the preparation of the annual financial statements.

Reasons for the virements/shifting

The appropriated budget for the Local and Regional Economic Development fund (LRED) in the 2013/14 financial year was R36,541 million. An amount of R9,167 million was shifted to ECDC and allocated to the Automotive Industry Development Centre (AIDC) projects to boost automotive industry development support within the Eastern Cape Province.

The programme has experienced budgetary constraints with regards to leave gratuities as the budget is based on trends/estimates and not actual. However, a virement was approved for R49, 000 within transfer payments (Household) from programme two to programme one to defray excess expenditure.



1.2.1 Conditional grants and earmarked funds paid

The table below describes each of the conditional and earmarked funds paid by the Department:

Conditional grant 1: EPWP

Name of Grant Amount (R’000)

Expanded Public Works Programme ( EPWP) 550

Total 550

1.3 Services rendered by the Department

The Department provides a number of core external services which can be summarised as follows:


• Create an enabling environment for mainstreaming enterprises owned by Previously Disadvantaged Individuals (PDIs) and Historically Disadvantaged Individuals (HDIs) into the economy.

• Transform the economy for equitable distribution of wealth and sustainable growth.• Facilitate trade, export promotion and attract investment.• Co-ordinate localised production, manufacturing and trade based on nodes and clusters established to service local needs.• Actively promote the green economy.• Implement an enabling regulatory and licensing framework for liquor retailing, liquor manufacturing and gaming.• Actively promote responsible liquor usage and gambling.• Collect and remit revenue to the State.• Lobby for the removal of business barriers and promote consumer awareness.• Comply with the Unfair Business Practices Act and the Consumer Protection Act.• Guide decision making on economic growth and development including the green economy.• Facilitate the dissemination of meaningful economic data and analysis to stakeholders in municipalities and communities.


• Establish legislation, policies, programmes, procedures and systems that will effectively empower and support the core functional programmes of the Environmental Affairs programme.

• Conserve the diversity of landscapes, ecosystems, habitats, biological communities, populations, species and genes and promote conservation and sustainable use of natural resources in the Eastern Cape.

• Strive towards a safe and healthy environment through effective environmental impact management, air quality management and waste and pollution management for the people of the Eastern Cape.

• Ensure that environmental legislation is effectively used to protect the environment and its resources from unlawful and unsustainable exploitation and negative impacts.

• Empower and capacitate the external stakeholders of the Department to meaningfully participate in and contribute to effective environmental management.



1.4 Tariff policy

The legislation establishing public entities provide for the collection of revenue by the Eastern Cape Liquor Board (ECLB), Eastern Cape Gambling and Betting Board (ECGBB) and Eastern Cape Parks and Tourism Agency (ECPTA) falling within the functional re-sponsibility of the Economic Development Programme.

These legislative provisions prescribe how revenue should be managed, including remittance of certain amounts to the State in compliance with the provisions of the PFMA and Treasury prescripts.

The Department’s approved 2013/14 tariff structure is listed as follows:


Hunting licence (RSA) R20 per year

Hunting licence (Ciskei) R 10 per year

Permit to act as a professional hunter R 50 per year

License to sell protected flora R 20 per year

Professional hunting register R 90 per year

Fresh water angling license R 2 per year

Off-road vehicle permit As per Marine and Coastal Management Task Team recommendation

Boat launching site R 5 000 for a three year period from date of issue

Threatened or protected species (TOPS) R 1 000 registration R 1 000 standing permit R 100 hunt R 100 ordinary permit R 50 renewal R 100 amendment

Eastern Cape Liquor Act (10/2003)

Lodgement fees: Temporary registration R 100

Lodgement fees: Registration R 300

Lodgement fees: To procure a controlling interest in the business to which the registration relates

R 150

Lodgement fees: Transfer of certificate of registration R 200

Lodgement fees: Removal of certificate R 200

Lodgement fees: For a copy of registration certificate and conditions thereto of any application

R 100

Lodgement of an appeal R 200

Registration fees payable in respect of a new registration

Section 20(a) – Retail sale of liquor for consumption off the premises R2 000

Section 20(b) – Retail sale of liquor consumption on the premises R1 000

Section 20 (c) – Retail sale and consumption of liquor on and off the premises (shebeen/tavern)

R 300

Section 20(d) – Retail sale and consumption of liquor at special events R1 000



Fees payable in respect of the transfer or removal of a liquor registration:

Section 20(a) – Retail sale of liquor for consumption off the premises R 750

Section 20(b) – Retail sale of liquor for consumption on the premises R 500

Section 20(c) – Retail sale and consumption of liquor on and off the premises(shebeen /tavern)

R 100

Annual licence fees

Section 20(a) – Retail sale of liquor for consumption off the premises R 100

Section 20(b) – Retail sale of liquor for consumption on the premises R 500

The Department’s approved 2013/14 tariff structure is listed as follows: (continued)

Section 20(c) – Retail sale and consumption of liquor on and off the premises(shebeen/tavern)

R 200

General

Private photostat copies Contract tariffs

Private telephone calls Post Office tariffs

Private faxes sent Post Office tariffs

Official housing As per tariffs determined by the Department of Public Works

Domestic services Actual costs

1.5 Free Services

Free services rendered by the Department that would have yielded significant revenue during the year are as follows:

• The registration of business enterprises and administrative support given to applicants is rendered at no charge. Charging a fee based on 10-30% of applicable standard rate would yield significant revenue given an annual average of 200 applications handled by the Enterprise Development Unit. Currently registration fees for close corporations, co-operative enterprises and others ranged between R250.00 – R300.00 per business license.

• The provision of permits for all relevant environmental legislation in the Eastern Cape (i.e. cycad registration, certificates of adequate enclosure, driving in the coastal conservation area and environmental education).

• The provision of permits for all relevant environmental legislation in the Eastern Cape (i.e. flora growers, certificates of adequate enclose, driving in the coastal conservation area, wildlife management and threatened or protected species (TOPS).

• The review and issuing of environmental authorisations or atmospheric emission licenses (environmental impact assessment, land-fill sites and air quality), and processing and issuing of fines under Section 24(g) of the National Environmental Management Act (NEMA)..

1.6 Inventories

The total inventories on hand at year-end are included in annexure 6 on inventory.

1.7 Capacity Constraints

During the year, the Department experienced capacity constraints in the Financial Management division, particularly in the area of Supply Chain Management (SCM). These constraints were also prevalent in the 2012/13 financial year and resulted in internal control deficiencies, which were reflected in the audit report of that year. In order to address the constraints, the Department has appointed a Senior Manager for SCM while at the same time services of an accounting firm were procured. The service provider is giving assis-



tance in setting up SCM processes and controls, reviewing and updating SCM policies and training. While the constraints in the SCM unit did not adversely impact on service delivery, the improved capacity will, besides addressing internal control deficiencies, allow for quicker turnaround times in procurement and logistics. Capacity constraints in service delivery programmes have been addressed in the short-term through the appointment of sector specialists on contract and projects allocated to public entities. The constraints will be permanently addressed when the revised Departmental organogram is approved.

1.8 Utilisation of Donor Funds

In 2012, DEDEAT and GIZ entered into two cooperation agreements for technical support, namely: support to DEDEAT in respect of the Skills for Green Jobs Project; and support to DEDEAT under the South African German Energy Programme.

• Under Skills for Green Jobs, GIZ has provided a full-time Technical Advisor. The advisor assists with capacity building of Further Edu-cation and Training (FET) lecturers, providing technical assistance to members of the Provincial Green Skills Forum, and providing support to DEDEAT at numerous career days in the Province. Furthermore, under the Skills for Green Jobs Programme, GIZ has paid for the training of Eastern Cape FET lecturers in Germany in the fields of renewable energy and energy efficiency.

• Under the South African-German Energy Programme, a full-time Technical Adviser has been assigned to DEDEAT to assist in facili-tating the implementation of the Provincial Sustainable Energy Strategy. The adviser has provided direct support to municipalities who have approached DEDEAT for assistance. Furthermore, GIZ has commissioned the study as:Mapping of Provincial & Municipal Permitting Process for IPP Projects in the Eastern Cape. The study provides support to municipalities and provincial government departments in respect of authorisations for independent power producers.

The Technical Advisor joined the Department in 2013 butit has not been the policy of GIZ to disclose the financial value of their sup-port to DEDEAT. The value of the support cannot be quantified and is a donation in kind.

1.9 Trading Entities and Public Entities

There are no guarantees issued by the Department on behalf of the public entities, therefore there are no recorded losses for the year.

The Department is responsible for oversight of four public entities. In addition, the Department also provided funding to East London Industrial Development Zone (ELIDZ) and Coega Development Corporation (CDC) via the ECDC. The current Special Economic Zone (SEZ) Bill under discussion will assist in dealing with the role played by Provincial Government regarding IDZ’s.

The Department’s public entities and their respective functions:

Public Entity Legislation under which established Main purpose of the Public Entity/Reasons for transfers

Eastern Cape Development Corporation(ECDC)

National Small Business Act of 1995. Business Act No. 71 of 1991. Eastern Cape Development Corporation Act No. 2 of 1997, Policy document from the DTI

To facilitate economic development in the province by promoting investment, small business development and innovative development financing.

The Eastern Cape Gambling and Betting Board(ECGBB)

Eastern Cape Gambling and Betting Act 5 of 1997

To regulate and manage the gambling and betting industry in the province.

The Eastern Cape Liquor Board(ECLB) The Liquor Act No. 10 of 2003 To regulate and manage the retail sale of liquor in the province.

The Eastern Cape Parks and Tourism Agency(ECTPA)

Eastern Cape Parks and Tourism Agency Act No.2 of 2010

To provide for the establishment of the Eastern Cape Parks and Tourism Agency in order to develop and manage protected areas and to promote and facilitate the development of tourism in the Province and to confer powers, functions and duties upon that Agency.



Public Entity Legislation under which established Main purpose of the Public Entity/Reasons for transfers

The Coega Development Corporation(ECDC subsidiary)

The Coega Development Corporation Programme of the DTI

To promote and facilitate the establishment of the Coega Development Corporation and the further development of the Port of Port Elizabeth as a focus for private sector investment.

The East London Development Zone Corporation(ECDC subsidiary)

The Industrial Development Zone Programme of the DTI

To promote and facilitate the establishment of the East London IDZ and the further development of the Port of East London as a focus for private sector investment.

1.10 Organisations to whom transfer payments have been made

Transfers to Public Entities

Below is a list of public entities where transfers have been made by the Department. Funds are transferred to public entities on re-ceipt of quarterly and monthly signed reports. Transfers to public entities, municipalities and other entities are made in line with the National Treasury Regulations and the relevant circulars, and the signed service level agreements.

AGENCY / ACCOUNT AMOUNTEastern Cape Parks and Tourism Agency 196 387

Eastern Cape Gambling and Betting Board 42 687

East London Industrial Development Zone (Paid R 114,907 million via ECDC)

Eastern Cape Liquor Board 41 131

Eastern Cape Development Corporation 704 018

Coega Development Corporation ( Paid R 82 million via ECDC )

TOTAL 984 223

Transfers to Universities and Technikons

UNIVERSITY NATURE OF TRANSFER AMOUNTRhodes University Initiation of public sector jobs, data collection and

reporting for Economic Development Cluster seminars/public dialogues

1 964

University of Fort Hare Initiation of a tracer study of graduates (together with Rhodes University) through the national Labour Market Intelligence Partnership (LMIP)

1 100

Nelson Mandela Metropolitan University Shale gas research project/partnership 8 000

TOTAL 11 064



Other Transfers to Private Enterprises

NAME OF PRIVATE ENTERPRISE NAME OF FUND AMOUNT

Chemistry Incubation Local and Regional Economic Development Fund 1 800

Hershell Sand Stone Mine C.C Local and Regional Economic Development Fund 500

Emthonjeni Arts Local and Regional Economic Development Fund 3 000

P.S. J Woodwork Corporation LTD Local and Regional Economic Development Fund 3 000

Bambanani Garden Agricultural Co. Local and Regional Economic Development Fund 750

GZ Foundation Trust Local and Regional Economic Development Fund 3 000

Organisations to whom transfer payments have been made (continued)

NAME OF PRIVATE ENTERPRISE NAME OF FUND AMOUNT

Malakhiwe Bakery Co-operative LTD. Local and Regional Economic Development Fund 750

Ikusasa Green (PTY) LTD Local and Regional Economic Development Fund 3 000

Abenzi Woodhouse Local and Regional Economic Development Fund 3 000

Nomzamo Cleaning Service Co-operation Local and Regional Economic Development Fund 1 762

Rasmeni Farming Primary Co-op Local and Regional Economic Development Fund 3 000

Zingisa Ward 25 Willovale Honey Local and Regional Economic Development Fund 1 095

Amadela Kufa Agricultural Second Local and Regional Economic Development Fund 1 000

Masiphakame Bakery Local and Regional Economic Development Fund 500

Sithi Makukhanye Primary Co-operation Local and Regional Economic Development Fund 1 600

Ekhephini Community Radio Local and Regional Economic Development Fund 1 070

TOTAL 28 827

Transfers to Municipalities

NAME OF MUNICIPALITY PROGRAMME DESCRIPTION / REASON FOR TRANSFER AMOUNT

Chris Hani District Municipality EPWP projects(Lapesi eradication) 550

Senqu Local Municipality EPWP(Langbos eradication) 1 523

Port St. Johns Local Municipality EPWP(Alien species eradication) 4 400

Umzimvubu Local Municipality EPWP(Donga rehabilitation) 2 700

Amahlathi Local Municipality Greenest Municipality Competition 200

Gariep Local Municipality EPWP(Waste Management) 1 500

Elundini Local Municipality Local business enabling environment survey 350

Intsika Yethu Local Municipality Greenest Municipality Competition 500

TOTAL 11 723 Transfers to other Entities and Greenest Municipalities

NAME OF ENTITY / MUNICIPALITY PROGRAM DESCRIPTION / REASON FOR TRANSFER AMOUNT

St. Mathews High School Payment for Environ Awards Competition 15

Loyiso Senior Secondary School Payment for Environ Awards Competition 5

Dumani Primary School Payment for Environ Awards Competition 20

Ntabeze Junior Secondary School Payment for Environ Awards Competition 120

St. Minica Diocesan School Payment for Environ Awards Competition 15




St. Christophers Private School Payment for Environ Awards Competition 20

Kabega Primary School Payment for Environ Awards Competition 5

Jityaza Combined Primary School Payment for Environ Awards Competition 5

Mbodleni Junior Secondary School Payment for Environ Awards Competition 5

Marilliers Learning Academy Payment for Environ Awards Competition 20

Thoboshana Farm School Payment for Environ Awards Competition 70

Focused High School Payment for Environ Awards Competition 20


Umthawelanga Senior Secondary School Payment for Environ Awards Competition 15

St. John’s College Payment for Environ Awards Competition 15

Hlabathi Junior Secondary School Payment for Environ Awards Competition 15

Nzimankulu Senior Secondary School Payment for Environ Awards Competition 15

Mzamba Junior Secondary School Payment for Environ Awards Competition 5

Ndyebo Senior Secondary School Payment for Environ Awards Competition 15

Ntabenkonyana High School Payment for Environ Awards Competition 5

St. Christophers Private School Payment for Environ Awards Competition 98

Focused High School Payment for Environ Awards Competition 97

Umkhankomo Senior Secondary School Payment for Environ Awards Competition 5

Ebenezer Nyathi Senior Secondary School Payment for Environ Awards Competition 20

Camhams Junior Secondary School Payment for Environ Awards Competition 5

Empumalanga Payment for Environ Awards Competition 15

Mabandla Junior Secondary School Payment for Environ Awards Competition 5

Nozipho Junior Primary School Payment for Environ Awards Competition 5

Jongimishini Senior Primary School Payment for Environ Awards Competition 15

Nolufefe Senior Primary School Payment for Environ Awards Competition 95

Zandise Junior Secondary School Payment for Environ Awards Competition 15

Arthur Mfebe Agricultural School Payment for Environ Awards Competition 20

Rubusana Senior Secondary School Payment for Environ Awards Competition 5

Unathi Mkeva Public Primary School Payment for Environ Awards Competition 45

Theodor Herzl High School Payment for Environ Awards Competition 50

Ebenezer Nyathi Secondary School Payment for Environ Awards Competition 25

Theodor Herzl High School Payment for Environ Awards Competition 20

Luyteville Primary School Payment for Environ Awards Competition 15

Cabane Junior Secondary School Payment for Environ Awards Competition 15

Sterkspruit Community S.P.S Payment for Environ Awards Competition 5

Mpemba Junior Secondary School Payment for Environ Awards Competition 20

TOTAL 1 000

Public Private Partnerships (PPP)

The PPP agreement is between the DEDEAT and the GIZ which deals with identifying new sources of renewable energy. The agree-ment is based on the secondment of international renewable advisors to provide support to the Department.



Corporate Governance Arrangements

The Department established its governance structures in order to maintain the highest standards of governance in the management of public funds and resources. The key principle behind each structure is independence, accountability and integrity. The Department also ensures that governance is audited to provide assurance that the Department’s governance structures are effective, efficient and economical in the utilisation of government resources.

1.11 Governance Structures

Amongst others, the following key governance structures were functional during the year:

STRUCTURE FUNCTION MEETING DATES

Top Management The Top Management Forum is a forum comprising the most senior personnel in the Department, public entities, the MEC and the Chief of Staff. The Top Management Forum is accountable to the MEC and serves as a formal communication link with the Executive Authority.

15 July 2013

Executive Committee (EXCO)

EXCO comprises of the HOD as the Chairperson, Programme Managers, General Managers, CFO, COO, Chief of Staff, Senior Manager: Office of the HOD as the Secretariat, Chief Audit Executive, SM: Compliance and risk management, DGITO and Chief Communications Officer. The Executive Committee is accountable to the MEC with regard to matters relating to the general performance of the Department.

10 April 201320 May 201303 June 201318 June 201301 July 201313 August 201316 September 201315 October 201311 November 201325 November 201326 February 201413 March 2014

Management Committee (MANCO)

Membership of this forum comprises of the following people: the HOD as the Chairperson; Programme Managers and General Managers (by invitation or when required), Chief of Staff, Senior Managers and Regional Directors, Managers (as and when required), Office of the HOD as the Secretariat, Parliamentary Liaison Officer (PLO) and Chief Communications Officer. MANCO is responsible for operational and administrative efficiency of the organisation and gives effect to EXCO interventions regarding operational and administrative performance.

06 May 201314 April 201410 February 2014

Audit Committee The Audit Committee comprises of three independent persons appointed by the MEC to undertake oversight responsibilities as contained in the Audit Charter. The audit committee is also attended by the HOD, Programme Managers, General Managers, CFO, COO, DGITO, Chief Audit Executive as the secretariat, Chief of Staff and SM: Office of the HOD.

Scheduled meetings25 April 201322 August 201321 November 201324 February 2014Special meetings23 May 201329 July 2013

Fraud and Risk Committee

The Fraud and Risk Committee comprises of four independent persons appointed by the HOD and undertakes oversight responsibilities as contained in the committee charter. The committee is also attended by the HOD, Programme Managers, General Managers, CFO, COO and other persons when required.

22 October 201312 December 201327 January 2014March 2014

1.12 Risk Management

There has been no change to the Department’s risk management policy and framework. A Risk Management Committee (RMC) was established to oversee implementation. The General Managers are the risk champions within the Department and are accountable to the Accounting Officer. To enhance risk management effectiveness, the senior management performance contracts included risk management as a key performance area.



The approach is consistent with previous financial years in that the Department follows a top-down and process championed model. The strategies followed include risk management per upside, uncertainty and downside approaches. Subsequent to the risk assess-ment, a selection/prioritisation of the top five risks per programme was done as per the risk management framework, for manage-ment of those risk at an executive level throughout the financial year.

The significant change made was to replace the Chairperson of the RMC (who was the Accounting Officer) with an external person in order to strengthen accountability.

The Department’s risk identification process is in accordance with its framework and public sector risk management framework. Historical information and brainstorming was used to identify risks from internal and external sources. The risk identification aimed at ensuring focus on specific deliverables per strategic objective and processes within each business unit. Risk management was embedded in some of the Department’s processes which include, but are not limited to, the following:

i. Performance management The performance contracts of senior management include risk management as a key result area in which management must ensure identification and management of risks within their business units.

ii. Management meetingsRisk management is a standing agenda item in the senior and executive management meetings and is aimed at ensuring effective implementation of risk management.

iii. Procurement and contract management The risk management unit reviewed the terms of reference prior to the bid specifications committee consideration in order to identify risks to be managed before they materialise. Once the tender adjudication was finalised, the contract with the selected service pro-vider was reviewed by risk management and the legal services.

iv. Audit committeeThe audit committee performed its oversight function on risk management in every committee meeting.

All the above-mentioned governance structures have been operational in the 2013/14 financial year and the Risk Management Com-mittee sat at least four times.

Despite the above, the implementation of risk mitigation plans has been a tremendous challenge throughout the financial years, including 2013/14.

The Internal Audit unit conducted an audit on the “follow up on implementation of the risk management action plans” and the opinion is that it was partially implemented. The internal audit’s opinion on the financial management capability maturity model and corporate governance was “partial”.

In light of the above, it is apparent that risk management effectiveness within the Department is improving. The RMC has reviewed risk management implementation within theDepartment and issued reports for consideration by the Accounting Officer and the Audit Committee during the year under review. The audit of the effectiveness of risk management was conducted by the Internal Audit unit of theDepartment and found the Department lacking in the implementation of risk and fraud mitigation plans. That is consistent with the Committee report, sighting challenges in the submission of the portfolio of evidence to support implementation of risk management within the Department. The Accounting Officer is enhancing implementation of risk management through establishment of systems and capacity building.

1.13 Fraud and Corruption

The Department reviewed and approved its Fraud Prevention Plan in February 2013. The plan consists of identified fraud risks and action plans to mitigate the risks per directorate. Stakeholders can report illicit activities through the following:

• Calling the PSC hotline number on 0800701701• Sending an email to: [email protected]



• Calling the Presidential hotline number on 17737• Speaking directly to the Head of Department and the Executing Authority

The Department also has a whistle blowing policy.

The investigations into illicit activities are facilitated by the Fraud & Anti-Corruption and the Labour Relations units and disciplinary actions are taken where necessary.

1.14 Minimising Conflict of Interest

The processes followed to manage the conflict of interest include: • Disclosure of financial interests by senior management, Supply Chain Management Practitioners, role players and BID Committee

members • Vetting of senior management, staff and key suppliers• Ensuring proper delegation of financial, human resource and supply chain management functions. • Verification of bidders’ conduct against the register of tender defaulters• Verification of the Standard Bidding Documents (SBD 4) during the procurement process• The service providers are required to disclose their financial interests and connected government employees through the supply

chain management processes

Cooperative governance between the Department and the South African Police Service, Trade and Industry, Provincial and National Treasury, South African Revenue Services and the State Security Agency has enhanced the management of conflict of interest.

1.15 Code of Conduct

A pledge signed by the executive management is displayed in the Department’s offices to give effect to commitment by top man-agement to abide by the Department’s code of conduct.

Meetings with regions have been held during the year to promote the code of conduct.

1.16 Internal Control Directorate

The Department’s control environment is at a developmental stage, but relies a lot on the government policies and related control documents. There are internally developed internal controls within the Department as well.

The audit reports of the internal and external auditors have assisted the Department in identifying internal control weaknesses, over and above the risk assessments conducted within the Department.

The Department has continuously reviewed the existing policies and other documented internal controls. Some of these documents are still at draft stages; others have been approved and implemented in the year under review. However, more emphasis has been on the implementation of the internal controls. Therefore, the Internal Control Directorate (ICD) checks all the purchase orders, payments, subsistence and travel allowance claims for compliance prior to issuing of orders and payments thereto.

The ICD checks purchase orders and payments for compliance with internal controls, over and above the management review pro-cesses. The directorate distributed the control documents to 465 of the Department’s staff and trained financial management staff on the Department’s internal controls to ensure understanding and uniform implementation of internal controls. At least 16 policy reviews were done by internal control directorate with a view to improve such policies.

1.17 Discontinued Activities/Activities to be Discontinued

There are no activities that have been discontinued and there is no intention to discontinue any other services.



1.18 New/Proposed Activities

There are no new proposed activities.

1.19 Asset Management

All Departmental assets have been captured in the asset register. The Department’s asset register is compliant with the Asset Man-agement Reforms. The Department has not encountered any problems with the recording of assets. In the year under review, the Department has disposed assets to non-profit organisations and schools in the province.

1.20 Inventories

All Departmental inventory opening and closing balances, together with movements for the year, will be reflected in annexure 6 on inventory.

1.21 Events After the Reporting Date

A new MEC was appointed after the general elections that took place in May 2014. The process to transfer the shares held by the ECDC in the ELIDZ had begun but could not be finalised by year end.As both of these events took place after the reporting date, these are non-adjusting events and disclosure has been made thereof in the financial statements.

1.22 Information on Predetermined Objectives

The Department has implemented a comprehensive performance management and reporting process that includes controls over quarterly reporting and the validation of portfolios of evidence supporting reported performance. This ensures credible and con-sistent reporting to departmental governance structures regarding performance and remedial actions required to improve perfor-mance deficiencies. Performance management and reporting processes are audited by the Internal Audit.

1.23 SCOPA Resolutions

The Department was not called for SCOPA hearings so there were no SCOPA resolutions for the Department in 2013/14.

1.24 Prior Modifications to Audit Reports

Nature of non-compliance Financial year in which it first

arose

Progress made in clearing/resolving the matter

Increases of R513 000 in the budget for transfers and subsidies to other institutions were not approved by the Provincial Treasury, as required by National Treasury Regulations 6.3.1(a) and 6.3.1(d).

2012/13 The Department has put in place monitoring systems for all shifting and virements to be approved by the relevant structures in terms of the regulations

The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework and as required by Section 40(1) of the PFMA. Misstatements of revenue and disclosure items identified by the auditors in the submitted financial statement were subsequently corrected and the supporting records were provided, resulting in the financial statements receiving an unqualified audit opinion.

2012/13 The Chief Financial Officer has arranged training and the review has been scheduled for both the Audit Committee and the Internal Auditor’s unit.

Certain goods and services of a transaction value above R500 000 were procured without inviting competitive bids, as required by TR 16A6.1.




Nature of non-compliance Financial year in which it first

arose

Progress made in clearing/resolving the matter

Invitations for competitive bidding were not always advertised for a required minimum period of 21 days, as required by TR 16A6.3(c).


Bid adjudication was not always done by Committees that were composed in accordance with the policies of the Department, as required by TR 16A6.2 (a), (b) and (c).


Certain contracts and quotations were awarded to bidders who did not submit a declaration on whether they are employed by the State or connected to any person employed by the State, which is prescribed in order to comply with TR 16A8.3.

2012/13 All bidders in the current financial year as part of the audit intervention plan do submit declaration forms.

Certain employees of the Department performed remunerative work outside their employment in the Department without written permission from the relevant authority as required by section 30 of the Public Service Act, 1994 (Act No. 3 of 1994).

2012/13 Although it has been difficult to track transgressors, the Department has issued communication that compels employees to make the necessary applications for approval for all remunerative work outside their employment.

Sufficient appropriate audit evidence could not be obtained to enable the proper process to be followed to verify the claims made in the candidates’ applications before appointment as required by Public Service Regulation (PSR) 1/Vll/D.8.

2012/13 Prior to appointment, reference checks are made, security checks and verifications of qualifications and citizenship are facilitated by NIA through the Security Management unit.

Sufficient appropriate audit evidence could not be obtained that the Accounting Officer implemented effective measures to ensure that employees do not abuse sick leave, as required by PSR 1/V/F(c).

2012/13 Follow-ups are made on officials who are frequently on sick leave and the Wellness unit follows up on those cases.

The Accounting Officer did not take effective steps to prevent irregular expenditure, as required by section 38(1) (c) (ii) of the PFMA and TR 9.1.1.

2012/13 The SCM unit has been without leadership due to the delay in the organisational structure process and death of the previous SCM Manager. A senior manager for SCM was appointed during the year.

Contractual obligations and money owed by the Department were not settled within 30 days or an agreed period, as required by section 38(1) (f ) of the PFMA and TR 8.2.3.

2012/13 The Department has improved and there is a plan to have all payments paid within 30 days.

The Accounting Officer did not take effective and appropriate steps to collect all moneys due, as required by section 38(1) (c) (i) of the PFMA and TR 11.2.1, 15.10.1.2(a) and 15.10.1.2(e).

2012/13 The Department has since received a report from ECDC on all coops that are not servicing their loan debts and the Department will investigate each case.

Interest was not charged on debts, as required by TR 11.5.1. 2012/13 The interest referred to is in respect of co-op loans issued by ECDC. The Department is in a process of investigating the co-ops that are not paying. The interest has not been charged as a result of none compliant SLAs that were since reviewed for the following financial years.

The Department has been found to be in contravention with the Treasury Regulations by awarding 0% interest rate loans to cooperatives through the ECDC.



1.25 Interim Financial Statements

The Department has submitted as scheduled the interim financial statements for the three quarters as per Treasury instruction. These were presented to the Audit Committee.

The submissions have been improving and that has been reflected in the feedbacks from reviews performed by the Provincial Treasury. The reviews and feedbacks have assisted in the compilation of Annual Financial Statements for the 2013/14 financial year.

1.26 Other

The Department has made payments for buildings occupied in East London, Queenstown, Aliwal North and King Williams Town to the value of R14 847 511. The Department of Roads and Public Works is not a related party as defined by the Modified Cash Standard, but this is a significant transaction.

No other material facts or circumstances which may have a material effect on the understanding of the financial state of affairs of the Department, and which have not been disclosed elsewhere, have been identified.

1.27 Approval

The Annual Financial Statements set out on pages 144 to 249 have been approved by the Accounting Officer.

_______________________Mr Bongani GxilisheAccounting Officer31 May 2014



2. ACCOUNTING OFFICER’S STATEMENT OF RESPONSIBILITY FOR ANNUAL FINANCIAL STATEMENTS

Statement of Responsibility for the Annual Financial Statements for the year ended 31 March 2014

The Accounting Office is responsible for the preparation of the Department’s Annual Financial Statements (AFS) and for the judgements made in this information.

The Accounting Officer is responsible for establishing, and implementing a system of internal control designed to provide reasonable assurance as to the integrity and reliability of the annual financial statements.

In my opinion, the financial statements fairly reflect the operations of the Department for the financial year ended 31 March 2014.

The external auditors are engaged to express an independent opinion on the AFS of the Department.

The Department of Economic Development, Environmental Affairs and Tourism’s AFS for the year ended 31 March 2014 have been examined by the external auditors and their report is presented on page 101.

The Annual Financial Statements of the Department set out on page 106 to page 163 have been approved.

_________________

Mr. Bongani GxilisheACCOUNTING OFFICER31 May 2014



3. REPORT OF THE AUDITOR GENERAL

REPORT OF THE AUDITOR-GENERAL TO THE EASTERN CAPE PROVINCIAL LEGISLATURE ON VOTE NO 9: DEPARTMENT OF ECONOMIC DEVELOPMENT, ENVIRONMENTAL AFFAIRS AND TOURISM

REPORT ON THE FINANCIAL STATEMENTS

Introduction

1. I have audited the financial statements of the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism set out on pages 106 to 163, which comprise the appropriation statement, the statement of financial position as at 31 March 2014, 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, comprising a summary of significant accounting policies and other explanatory information.

Accounting Officer’s responsibility for the financial statements

2. The accounting officer is responsible for the preparation and fair presentation of these financial statements in accordance with the Modified Cash Standard (MCS) prescribed by the National Treasury and the requirements of the Public Finance Management Act, 1999 (Act No.1. of 1999) (PFMA) and Division of Revenue Act of South Africa, 2013 (Act No. 2. of 2013) (DoRA), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-general’s responsibility

3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the general notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism as at 31 March 2014 and its financial performance and cash flows for the year then ended, in accordance with the MCS prescribed by the National Treasury and the requirements of the PFMA and DoRA.

Emphasis of matters

7. I draw attention to the matters below. My opinion is not modified in respect of these matters.



Irregular expenditure

8. As disclosed in note 24 to the financial statements, irregular expenditure amounting to R30,4 million was incurred by the Department during the year ended 31 March 2014. This is as a result of non-compliance with procurement requirements, human resource procedures and DoRA. In addition, R19,3 million of the irregular expenditure was disclosed as still awaiting condonation as at 31 March 2014.

Fruitless and wasteful expenditure

9. As disclosed in note 25 to the financial statements, fruitless and wasteful expenditure amounting to R1,9 million was incurred by the Department during the year ended 31 March 2014. This is as a result of costs that could have been avoided had proper procedures been followed. In addition, R3 million of the fruitless and wasteful expenditure was disclosed as still awaiting resolution as at 31 March 2014.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

10. In accordance with the PAA and the general notice issued in terms thereof, I report the following findings on the reported performance information against predetermined objectives for selected programmes presented in the Annual Performance Report, compliance with legislation, as well as internal control. The objective of my tests was to identify reportable findings as described under each subheading, but not to gather evidence to express assurance on these matters. Accordingly, I do not express an opinion or conclusion on these matters.

Predetermined objectives

11. I performed procedures to obtain evidence about the usefulness and reliability of the reported performance information for Programme 2: Economic Development, as presented on pages 30 to 37 in the annual performance report of the Department for the year ended 31 March 2014.

12. I evaluated the reported performance information against the overall criteria of usefulness and reliability.

13. I evaluated the usefulness of the reported performance information to determine whether it was presented in accordance with the National Treasury’s annual reporting principles, and whether the reported performance was consistent with the planned programmes. I further performed tests to determine whether indicators and targets were well defined, verifiable, specific, measurable, time bound and relevant, as required by the National Treasury’s Framework for managing programme performance information (FMPPI).

14. I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

15. I did not raise any material findings on the usefulness and reliability of the reported performance information for the selected programme.

Additional matter

16. Although I raised no material findings on the usefulness and reliability of the reported performance information for the selected programmes, I draw attention to the following matters:

Achievement of planned targets

17. Refer to the annual performance report on pages 30 to 37 for information on the achievement of the planned targets for the year.

Adjustment of material misstatements

18. I identified material misstatements in the annual performance report submitted for auditing on the reported performance information for Programme 2: Economic Development. As management subsequently corrected the misstatements, I did not raise any material findings on the usefulness and reliability of the reported performance information.



Compliance with legislation

19. I performed procedures to obtain evidence that the Department had complied with applicable legislation regarding financial matters, financial management and other related matters. My findings on material compliance with specific matters in key legislation, as set out in the general notice issued in terms of the PAA, are as follows:

Annual financial statements, performance, and annual reports

20. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework and as required by Section 40(1)(a) of the PFMA.

21. Material misstatements of disclosure items identified by the auditors in the submitted financial statements were subsequently adjusted, resulting in the financial statements receiving an unqualified audit opinion.

Consequence management

22. Allegations of improper conduct and failure to comply with the SCM system against officials were not investigated, in contravention of Treasury Regulation 16A9.1(b).

Expenditure management

23. Effective steps were not taken to prevent irregular, fruitless and wasteful expenditure, as required by Section 38(1)(c)(ii) of the PFMA and Treasury Regulation 9.1.1.

Revenue management

24. Effective and appropriate steps were not taken to collect all money due, as required by Section 38(1)(c)(i) of the PFMA and Treasury Regulations 11.2.1, 15.10.1.2(a) and 15.10.1.2(e).

25. Interest was not charged on debts as required by Treasury Regulation 11.5.1.

Human resource management

26. Employees were appointed without following a proper process to verify the claims made in their applications, in contravention of Public Service Regulation 1/VII/D.8.

Procurement and contract management

27. Goods and services with a transaction value below R500 000 were procured without obtaining the required price quotations, as required by Treasury Regulation 16A6.1.

28. Goods and services of a transaction value above R500 000 were procured without inviting competitive bids, as required by Treasury Regulation 16A6.1. Deviations were approved by the Accounting Officer even though it was not impractical to invite competitive bids, in contravention of Treasury Regulation 16A6.4.

29. Sufficient appropriate audit evidence could not be obtained that contracts and quotations were awarded to bidders based on points given for criteria that were stipulated in the original invitation for bidding and quotations, as required by the supply chain regulations, Treasury Regulation 16A6.3(a) and the preferential procurement regulations.

Internal control

30. I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with legislation. The matters reported below are limited to the significant internal control deficiencies that resulted in the unqualified opinion, the findings on the annual performance report, and the findings on compliance with legislation included in this report.

Leadership

31. Senior management did not sufficiently discharge their oversight of financial reporting and compliance monitoring. In particular, the revision of critical policies has not been given adequate attention and the organogram has not been finalised.



32. The action plan developed by the management was not sufficient to address repeat findings on irregular expenditure and compliance matters.

33. Capacity constraints within the SCM and contract management units were addressed by management late in the financial year. This has contributed to the financial and compliance findings reported.

Financial and performance management

34. The financial statements submitted for auditing contained several errors which were subsequently corrected and these were not identified during management’s review processes. In addition, adjustments were required to the performance report submitted for auditing.

35. Numerous instances of non-compliance have again been noted during the financial year as a result of inadequate monitoring at the department.

Governance

36. Risk management activities have not been effective to sufficiently address and monitor the department’s risks throughout the financial year.

37. Internal audit did not give sufficient priority to procurement and compliance issues and, as a result, deficiencies in these areas could not be detected and addressed timeously.

OTHER REPORTS

Investigations

38. An independent consulting firm performed an investigation at the request of the department, which covered the period 2011-12. The investigation was initiated based on findings relating to irregular and fruitless and wasteful expenditure. The investigation was completed on 19 March 2014 and did not result in any criminal proceedings.

39. Allegations of possible fraud and misconduct are being investigated by the South African Police Service. The investigation was initiated based on procurement findings. The expected date of completion is not known.

East London29 July 2014



4.

AN

NU

AL

FIN

AN

CIA

L ST

ATEM

ENTS

APP

ROPR

IATI

ON

STA

TEM

ENT

For t

he y

ear e

nded

31

Mar

ch 2

014

App

ropr

iatio

n pe

r pro

gram

me

2013

/14

2012

/13

Adj

uste

d A

ppro

pria

tion

Shift

ing

of

Fund

sVi

rem

ent

Fina

l A

ppro

pria

tion

Act

ual

Expe

nditu

reVa

rian

ceEx

pend

iture

as

% o

f fin

al

appr

opri

atio

n

Fina

l A

ppro

pria

-tio

n

Act

ual

Expe

ndi-

ture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

1. A

DM

INIS

TRAT

ION

Curr

ent p

aym

ent

183

723

--

183

723

168

813

14 9

1091

.9%

168

860

157

220

Tran

sfer

s an

d su

bsid

ies

1 04

767

491

163

1 09

568

94.2

%75

675

5

Paym

ent f

or c

apita

l ass

ets

20 9

70(6

7)-

20 9

0314

882

6 02

171

.2%

14 0

5910

953

Paym

ent f

or fi

nanc

ial a

sset

s-

--

-35

1(3

51)

1 25

010

9

205

740

-49

205

789

185

141

20 6

4818

4 92

516

9 03

7

2. E

CON

OM

IC D

EVEL

OPM

ENT&

TO

URI

SM

Curr

ent p

aym

ent

57 7

92-

-57

792

52 0

695

723

90.1

%62

328

54 1

43

Tran

sfer

s an

d su

bsid

ies

829

820

-(4

9)82

9 77

182

8 96

081

199

.9%

316

237

315

943

Paym

ent f

or c

apita

l ass

ets

10-

-10

82

80.0

%-

-

Paym

ent f

or fi

nanc

ial a

sset

s-

--

--

--

-

887

622

-(4

9)88

7 57

388

1 03

76

536

378

565

370

086



APP

ROPR

IATI

ON

STA

TEM

ENT

For t

he y

ear e

nded

31

Mar

ch 2

014

App

ropr

iatio

n pe

r pro

gram

me-

2013

/201

420

12/1

3

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

R’00

0

3. E

NVI

RON

MEN

TAL

AFF

AIR

S

Curr

ent p

aym

ent

84 6

38-

-84

638

78 0

266

612

92.2

%74

279

70 6

87

Tran

sfer

s an

d su

bsid

ies

208

475

--

208

475

207

960

515

99.8

%19

5 94

719

5 94

5

Paym

ent f

or c

apita

l ass

ets

--

--

--

--

-

Paym

ent f

or fi

nanc

ial a

sset

s-

--

--

--

--

293

113

--

293

113

285

986

7 12

727

0 22

626

6 63

2

Subt

otal

1 38

6 47

5-

-1

386

475

1 35

2 16

434

311

97.5

%83

3 71

680

5 75

5

Stat

utor

y A

ppro

pria

tion

Curr

ent p

aym

ent

1 65

2-

-1

652

1 65

2-

100.

0%1

652

1 65

2

Tran

sfer

s an

d su

bsid

ies

-

Paym

ent f

or c

apita

l ass

ets

-

Paym

ent f

or fi

nanc

ial a

sset

s-

TOTA

L1

388

127

--

1 38

8 12

71

353

816

34 3

1197

.5%

835

368

807

407



APP

ROPR

IATI

ON

STA

TEM

ENT

For t

he y

ear e

nded

31

Mar

ch 2

014

2013

/14

Fina

l A

ppro

pria

tion

Act

ual

Expe

nditu

reFi

nal

App

ropr

iatio

nA

ctua

l Ex

pend

iture

TOTA

L (b

roug

ht fo

rwar

d)

Reco

ncili

atio

n w

ith S

tate

men

t of F

inan

cial

Per

form

ance

AD

D

Dep

artm

enta

l rec

eipt

s97

941

Aid

ass

ista

nce

-

Act

ual a

mou

nts

per S

tate

men

t of F

inan

cial

Per

form

ance

(tot

al re

venu

e)1

388

127

933

309

AD

D

Aid

ass

ista

nce

Prio

r yea

r una

utho

rise

d ex

pend

iture

app

rove

d w

ithou

t fun

ding

Act

ual a

mou

nts

per S

tate

men

t of F

inan

cial

Per

form

ance

(tot

al e

xpen

ditu

re)

1 35

3 81

680

7 40

7



App

ropr

iatio

n pe

r eco

nom

ic c

lass

ifica

tion

2013

/14

2012

/13

Adj

uste

d A

ppro

pria

tion

Shif

ting

of

Fund

sVi

rem

ent

Fina

lA

ppro

pria

-ti

on

Act

ual

Expe

ndit

ure

Vari

-an

ceEx

pend

itur

e as

% o

f Fin

al

App

ropr

iati

on

Fina

l A

ppro

pria

-ti

on

Act

ual

Expe

ndi-

ture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

Curr

ent p

aym

ents

Com

pens

atio

n of

em

ploy

ees

201

354

- -

201

354

192

840

8 51

495

.8%

187

870

180

835

Goo

ds a

nd s

ervi

ces

126

451

- -

126

451

106

068

20 3

8383

.9%

117

598

101

216

Inte

rest

and

rent

on

land

--

- -

- -

-

Tran

sfer

s an

d su

bsid

ies

Prov

ince

s an

d m

unic

ipal

ities

12 1

23-

-12

123

11 7

23

400

96.7

%4

100

4 09

8

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts97

5 05

69

167

-98

4 22

398

4 22

3 10

0%46

9 95

446

9 95

4

Hig

her e

duca

tion

inst

itutio

ns11

064

--

11 0

6411

064

10

0%1

695

1 69

5

Fore

ign

gove

rnm

ents

and

inte

rnat

iona

l or

gani

satio

ns

--

--

--

-

Publ

ic c

orpo

ratio

ns a

nd p

rivat

e en

ter-

pris

es38

856

(9 1

67)

-29

689

28 8

2786

297

.1%

35 6

9235

692

Non

-pro

fit in

stitu

tions

1

000

--

1 00

01

000

-

10

0%14

414

4

Hou

seho

lds

1 24

3-

-1

243

1 17

865

94.8

%1

354

1 05

9

Gift

s an

d do

natio

ns-

--

--

--

-

Paym

ents

for c

apita

l ass

ets

Build

ings

and

oth

er fi

xed

stru

ctur

es-

--

-8

(8)

--

Mac

hine

ry a

nd e

quip

men

t20

980

--

20 9

80

14 8

826

098

70.9

%14

059

10 9

53

Her

itage

ass

ets

--

- -

-

Spec

ialis

ed m

ilita

ry a

sset

s-

--

--

Biol

ogic

al a

sset

s-

--

--

Land

and

sub

soil

asse

ts-

--

--

APP

ROPR

IATI

ON

STA

TEM

ENT

For t

he y

ear e

nded

31

Mar

ch 2

014



App

ropr

iatio

n pe

r eco

nom

ic c

lass

ifica

tion

2013

/14

2012

/13

Adj

uste

d A

ppro

pria

tion

Shif

ting

of

Fund

sVi

rem

ent

Fina

lA

ppro

pria

-ti

on

Act

ual

Expe

ndit

ure

Vari

-an

ceEx

pend

itur

e as

% o

f Fin

al

App

ropr

iati

on

Fina

l A

ppro

pria

-ti

on

Act

ual

Expe

ndi-

ture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

Inta

ngib

le a

sset

s-

--

--

Paym

ents

for fi

nanc

ial a

sset

s -

- -

- 3

51

(351

)

1 2

5010

9

Tota

l1

388

127

- -

1 38

8 12

71

352

164

35 9

6397

.4%

833

716

805

755

VOTE

9

APP

ROPR

IATI

ON

STA

TEM

ENT

For t

he y

ear e

nded

31

Mar

ch 2

014



APP

ROPR

IATI

ON

STA

TEM

ENT

For t

he y

ear e

nded

31

Mar

ch 2

014 A

ppro

pria

tion

per e

cono

mic

cla

ssifi

catio

n

2013

/14

2012

/13

Prog

ram

1 P

er E

cono

mic

Cla

ssifi

catio

nA

djus

ted

App

ropr

iatio

nSh

iftin

g of

Fu

nds

Vire

men

tFi

nal

App

ropr

iatio

nA

ctua

l Ex

pend

iture

Vari

-an

ceEx

pend

iture

as

% o

f Fin

al

App

ropr

iatio

n

Fina

l A

ppro

pria

-tio

n

Act

ual

Expe

ndi-

ture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

Curr

ent p

aym

ents

Com

pens

atio

n of

em

ploy

ees

97 2

97

97 2

9793

534

3 76

396

.1%

90 8

5485

756

Goo

ds a

nd s

ervi

ces

88 0

78

88 0

7875

278

12 8

0085

.5%

78 0

0671

464

Inte

rest

and

rent

on

land

--

--

-

Tran

sfer

s an

d su

bsid

ies

Prov

ince

s an

d m

unic

ipal

ities

--

--

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts-

--

-

Hig

her e

duca

tion

inst

itutio

ns-

--

-

Fore

ign

gove

rnm

ents

and

inte

rnat

iona

l or

gani

satio

ns

--

--

Publ

ic c

orpo

ratio

ns a

nd p

rivat

e en

terp

rises

--

--

Non

-pro

fit in

stitu

tions

-

--

-

Hou

seho

lds

1 04

767

491

163

1 09

667

94%

756

755

Gift

s an

d do

natio

ns -

--

-

--

DEP

ART

MEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

ENVI

RON

MEN

TAL

AFF

AIR

S A

ND

TO

URI

SM



VOTE

9

APP

ROPR

IATI

ON

STA

TEM

ENT

For t

he y

ear e

nded

31

Mar

ch 2

014

Det

ail p

er P

rogr

amm

e

2013

/14

2012

/13

Prog

ram

1 P

er E

cono

mic

Cla

ssifi

catio

nA

djus

ted

App

ropr

iatio

nSh

iftin

g of

Fu

nds

Vire

men

tFi

nal

App

ropr

iatio

nA

ctua

l Ex

pend

iture

Vari

-an

ceEx

pend

iture

as

% o

f Fin

al

App

ropr

iatio

n

Fina

l A

ppro

pria

tion

Act

ual

Expe

n-di

ture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

Paym

ents

for c

apita

l ass

ets

--

Build

ings

and

oth

er fi

xed

stru

ctur

es -

--

-

Mac

hine

ry a

nd e

quip

men

t20

970

(6

7) 2

0 90

3 14

882

6 02

1 71

.2%

14 0

5910

953

Her

itage

ass

ets

- -

--

Spec

ialis

ed m

ilita

ry a

sset

s -

--

-

Biol

ogic

al a

sset

s -

--

-

Land

and

sub

soil

asse

ts -

--

-

Inta

ngib

le a

sset

s -

--

-

Paym

ents

for fi

nanc

ial a

sset

s35

1(3

51)

1 25

010

9

Tota

l 2

07 3

92-

4920

7 44

118

5 14

122

300

89.2

%18

4 92

516

9 03

7



APP

ROPR

IATI

ON

STA

TEM

ENT

For t

he y

ear e

nded

31

Mar

ch 2

014

Stat

utor

y A

ppro

pria

tion

per e

cono

mic

cla

ssifi

catio

n

2013

/14

2012

/13

Dire

ct c

hang

es a

gain

st th

e N

atio

nal/

Prov

inci

al R

even

ue F

und

Adj

uste

d A

ppro

pria

tion

Shift

ing

of

Fund

sVi

rem

ent

Fina

l A

ppro

pria

tion

Act

ual

Expe

nditu

reVa

ri-

ance

Expe

nditu

re

as %

of F

inal

A

ppro

pria

tion

Fina

l A

ppro

pria

-tio

n

Act

ual

Expe

ndi-

ture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

List

all

dire

ct c

harg

es a

gain

st th

e N

atio

nal/P

rovi

ncia

l Rev

enue

Fun

d-

--

--

--

--

Pres

iden

t and

Dep

uty

Pres

iden

t sa

lari

es-

--

--

--

--

Mem

ber o

f Exe

cutiv

e Co

mm

ittee

/ Pa

rlia

men

tary

Offi

cers

1 65

2-

-1

652

1 65

2-

100%

1 65

21

652

Judg

es a

nd m

agis

trat

es s

alar

ies

--

--

--

--

--

--

-

Sect

or e

duca

tion

and

trai

ning

au

thor

ities

(SET

A)

--

--

Nat

iona

l Ski

lls F

und

--

--

--

--

-

-

Tota

l1

652

1 65

21

652

100%

1 65

21

652



App

ropr

iatio

n pe

r Pro

gram

me

1- A

DM

INIS

TRAT

ION

2013

/14

2012

/13

Det

ail p

er s

ub-p

rogr

amm

e A

djus

ted

App

ropr

iatio

nSh

iftin

g of

Fu

nds

Vire

men

tFi

nal

App

ropr

iatio

nA

ctua

l Ex

pend

iture

Vari

-an

ceEx

pend

iture

as

% o

f Fin

al

App

ropr

iatio

n

Fina

l A

ppro

pria

-tio

n

Act

ual

Expe

ndi-

ture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

1.1

OFF

ICE

OF

THE

MEC

Curr

ent p

aym

ent

5 40

0(5

74)

4 82

64

343

483

90.0

%6

017

6 92

3

Tran

sfer

s an

d su

bsid

ies

--

--

-5

5

Paym

ent f

or c

apita

l ass

ets

--

--

--

-

1.2

OFF

ICE

OF

THE

HO

D

Curr

ent p

aym

ent

57 4

82(1

94)

57 2

8853

813

3 47

593

.9%

53 4

9348

250

Tran

sfer

s an

d su

bsid

ies

--

--

--

-

Paym

ent f

or c

apita

l ass

ets

1 40

0-

1 40

01

056

344

75.4

%34

132

6

Paym

ent f

or fi

nanc

ial a

sset

s-

--

351

(351

)1

250

109

1.3

FIN

AN

CIA

L M

AN

AG

EMEN

T

Curr

ent p

aym

ent

67 9

951

403

69 3

9862

558

6 84

090

.1%

63 5

0063

500

Tran

sfer

s an

d su

bsid

ies

--

--

--

--

Paym

ent f

or c

apita

l ass

ets

19 5

70(6

7)19

503

13 7

605

743

70 6

%13

713

10 6

22

Paym

ent f

or fi

nanc

ial a

sset

s-

--

--

--

-

1.4

CO

RPO

RATE

SER

VICE

S

Curr

ent p

aym

ent

52 8

46(6

35)

-52

211

48 0

994

112

92.1

%45

850

38 5

47

Tran

sfer

s an

d su

bsid

ies

1 04

767

491

163

1 09

568

94.2

%75

675

5

Paym

ent f

or c

apita

l ass

ets

--

--

66(6

6)-

-

TOTA

L20

5 74

0-

4920

5 78

918

5 14

120

648

90.0

%18

4 92

516

9 03

7

APP

ROPR

IATI

ON

STA

TEM

ENT

For t

he y

ear e

nded

31

Mar

ch 2

014



Det

ail p

er P

rogr

amm

e 2-

ECO

NO

MIC

DEV

ELO

PMEN

T &

TO

URI

SM

2013

/14

2012

/13

Det

ail p

er s

ub-p

rogr

amm

eA

djus

ted

App

ropr

iatio

nSh

iftin

g of

Fu

nds

Vire

men

tFi

nal

App

ropr

iatio

nA

ctua

l Ex

pend

iture

Vari

-an

ceEx

pend

iture

as

% o

f Fin

al

App

ropr

iatio

n

Fina

l A

ppro

pria

-tio

n

Act

ual

Expe

ndi-

ture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

2.1

INTE

GR A

TED

ECO

NO

MIC

D

EVEL

OPM

ENT

SERV

ICES

Curr

ent p

aym

ent

15 5

1210

-15

522

14 3

421

180

92.4

%18

450

16 4

94

Tran

sfer

s an

d su

bsid

ies

138

408

(23

673)

(49)

114

686

114

277

409

99.6

%10

6 76

310

6 61

8

2.2

TRA

DE

AN

D S

ECTO

R D

EVEL

OPM

ENT

Curr

ent p

aym

ent

10 5

26-

-10

526

9 86

366

393

.7%

17 6

5916

347

Tran

sfer

s an

d su

bsid

ies

602

374

25 7

29-

628

103

628

102

110

0.0%

135

755

135

606

2.3

BUSI

NES

S RE

GU

LATI

ON

AN

D

GO

VERN

AN

CE

Curr

ent p

aym

ent

25 0

13-

25 0

1322

234

2 77

988

.9%

22 1

5817

700

Tran

sfer

s an

d su

bsid

ies

87 0

74(2

056

)-

85 0

1884

617

401

99.5

%73

719

73 7

19

Paym

ent f

or c

apita

l ass

ets

10-

108

280

.0%

--

2.4

ECO

NO

MIC

PLA

NN

ING

Curr

ent p

aym

ent

3 76

9(6

99)

-3

070

2 58

748

384

.3%

4 06

13

602

Tran

sfer

s an

d su

bsid

ies

1 96

4-

-1

964

1 96

4-

100%

--

2.5

TO

URI

SM

Curr

ent p

aym

ent

2 97

268

9-

3 66

13

043

618

83.1

%-

-

Tota

l88

7 62

2-

(49)

887

573

881

037

6 53

699

.3%

378

565

370

086

APP

ROPR

IATI

ON

STA

TEM

ENT

For t

he y

ear e

nded

31

Mar

ch 2

014



2013

/14

2012

/13

Econ

omic

cla

ssifi

catio

nA

djus

ted

App

ropr

iatio

nSh

iftin

g of

Fu

nds

Vire

men

tFi

nal

App

ropr

iatio

nA

ctua

l Ex

pend

iture

Vari

-an

ceEx

pend

iture

as

% o

f Fin

al

App

ropr

iatio

n

Fina

l A

ppro

pria

-tio

n

Act

ual

expe

ndi-

ture

Prog

ram

me

2 Pe

r Eco

nom

ic

Clas

sific

atio

nR’

000

R’00

0R’

000

R’00

0R’

000

R’00

0%

R’00

0R’

000

Curr

ent p

aym

ents

Com

pens

atio

n of

em

ploy

ees

38 4

69-

38 4

6936

108

2 36

193

.9%

36 0

5035

553

Goo

ds a

nd s

ervi

ces

19 3

23-

-19

323

15 9

623

361

82.6

%26

279

18 5

91

Inte

rest

and

rent

on

land

Tran

sfer

s an

d su

bsid

ies

to:

Prov

ince

s an

d m

unic

ipal

ities

1 55

0-

-1

550

1 15

040

074

.2%

1 10

01

100

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts77

8 66

99

167

787

836

787

836

-10

0.0%

279

528

279

528

Hig

her e

duca

tion

inst

itutio

ns11

064

--

11 0

6411

064

-10

0.0%

1 69

51

695

Fore

ign

gove

rnm

ents

and

inte

rnat

iona

l or

gani

satio

ns

--

--

--

--

Publ

ic c

orpo

ratio

ns a

nd p

rivat

e en

terp

rises

38 3

41(9

167

)29

174

28 8

2734

798

.8%

33 4

5833

458

Non

-pro

fit in

stitu

tions

-

--

--

--

--

Hou

seho

lds

196

(49)

147

8265

55.8

%45

516

1

Gift

s an

d do

natio

ns-

--

--

--

--

APP

ROPR

IATI

ON

STA

TEM

ENT

For t

he y

ear e

nded

31

Mar

ch 2

014



2013

/14

2012

/13

Econ

omic

cla

ssifi

catio

nA

djus

ted

App

ropr

iatio

nSh

iftin

g of

Fu

nds

Vire

men

tFi

nal

App

ropr

iatio

nA

ctua

l Ex

pend

iture

Vari

-an

ceEx

pend

iture

as

% o

f Fin

al

App

ropr

iatio

n

Fina

l A

ppro

pria

-tio

n

Act

ual

Expe

ndi-

ture

Prog

ram

me

2 Pe

r Eco

nom

ic

Clas

sific

atio

nR’

000

R’00

0R’

000

R’00

0R’

000

R’00

0%

R’00

0R’

000

Paym

ent

for

capi

tal a

sset

s

Build

ings

and

oth

er fi

xed

stru

ctur

es-

--

-- 8

-(8

)

Mac

hine

ry a

nd e

quip

men

t10

--

10-

10

Spec

ialis

ed m

ilita

ry a

sset

s

Paym

ents

for fi

nanc

ial a

sset

s-

--

--

-

Tota

l88

7 62

2-

(49)

887

573

881

037

6 53

699

.3%

378

565

370

086

Det

ail p

er p

rogr

amm

e 3-

EN

VIRO

NM

ENTA

L AF

FAIR

S20

13/1

420

12/1

3

Det

ail p

er s

ub-p

rogr

amm

eA

djus

ted

App

ropr

iatio

nSh

iftin

g of

Fu

nds

Vire

men

tFi

nal

App

ropr

iatio

nA

ctua

l Ex

pend

iture

Vari

-an

ceEx

pend

iture

as

% o

f Fin

al

App

ropr

iatio

n

Fina

l A

ppro

pria

-tio

n

Act

ual

Expe

ndi-

ture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

3.1

ENVI

RON

MEN

TAL

POLI

CY

PLA

NN

ING

& C

OO

RDIN

ATIO

N

Curr

ent p

aym

ent

13 1

521

132

-14

284

12 3

971

887

86.8

%12

460

11 6

84

Tran

sfer

s an

d su

bsid

ies

10 5

73-

-10

573

10 5

73-

100.

0%4

144

4 14

2

Paym

ent f

or c

apita

l ass

ets

--

--

--

--

Paym

ent f

or fi

nanc

ial a

sset

s-

--

--

--

-

3.2

COM

PLIA

NCE

AN

D E

NFO

RCEM

ENT

Curr

ent p

aym

ent

42 3

28(1

215

)-

41 1

1339

947

1 16

697

.2%

37 6

1337

156

Tran

sfer

s an

d su

bsid

ies

--

--

--

--

Paym

ent f

or c

apita

l ass

ets

--

--

--

--

Paym

ent f

or fi

nanc

ial a

sset

s-

--

--

--

-

APP

ROPR

IATI

ON

STA

TEM

ENT

For t

he y

ear e

nded

31

Mar

ch 2

014



2013

/14

2012

/13

Det

ail p

er s

ub-p

rogr

amm

eA

djus

ted

App

ropr

iatio

nSh

iftin

g of

Fu

nds

Vire

men

tFi

nal

App

ropr

iatio

nA

ctua

l Ex

pend

iture

Vari

-an

ceEx

pend

iture

as

% o

f Fin

al

App

ropr

iatio

n

Fina

l A

ppro

pria

-tio

n

Act

ual

Expe

ndi-

ture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

3.3

ENVI

RON

MEN

TAL

QU

ALI

TY

MA

NA

GEM

ENT

Curr

ent p

aym

ent

15 1

11(1

027

)-

14 0

8412

659

1 42

589

.9%

12 1

6610

953

Tran

sfer

s an

d su

bsid

ies

4 47

9(4

479

)-

--

-71

971

9

Paym

ent f

or c

apita

l ass

ets

--

--

--

--

Paym

ent f

or fi

nanc

ial a

sset

s-

--

--

--

-

3.4

BIO

DIV

ERSI

TY M

AN

AG

EMEN

T

Curr

ent p

aym

ent

3 90

22

533

-6

435

4 97

51

460

77.3

%5

005

4 15

5

Tran

sfer

s an

d su

bsid

ies

192

423

4 47

9-

196

902

196

387

515

99.7

%19

1 08

419

1 08

4

Paym

ent f

or c

apita

l A

sset

s-

--

--

--

--

3.5

ENVI

ORO

NM

ENTA

L EM

POW

ERM

ENT

SERV

ICES

Curr

ent p

aym

ent

10 1

45(1

423

)-

8 72

28

048

674

92.3

%7

035

6 73

9

Tran

sfer

s an

d su

bsid

ies

1 00

0-

-1

000

1000

-10

0.0%

--

Paym

ent f

or c

apita

l

Ass

ets

--

--

--

--

-

Tota

l29

3 11

3-

-29

3 11

328

5 98

67

127

97.6

%27

0 22

626

6 63

2

APP

ROPR

IATI

ON

STA

TEM

ENT

For t

he y

ear e

nded

31

Mar

ch 2

014



2013

/14

2012

/13

Prog

ram

me

3 pe

r Eco

nom

ic

Clas

sific

atio

nA

djus

ted

App

ropr

iatio

nSh

iftin

g of

Fu

nds

Vire

men

tFi

nal

App

ropr

iatio

nA

ctua

l Ex

pend

iture

Vari

-an

ceEx

pend

iture

as

% o

f Fin

al

App

ropr

iatio

n

Fina

l A

ppro

pria

-tio

n

Act

ual

Expe

ndi-

ture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

Curr

ent p

aym

ents

Com

pens

atio

n of

em

ploy

ees

65 5

88-

-65

588

63 1

982

390

96.4

%60

966

59 5

26

Goo

ds a

nd s

ervi

ces

19 0

50-

-19

050

14 8

284

222

77.8

%13

313

11 1

61

Inte

rest

and

rent

on

land

Tran

sfer

s an

d su

bsid

ies

to:

Prov

ince

s an

d m

unic

ipal

ities

10 5

73-

-10

573

10 5

73-

100.

0%3

000

2 99

8

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts19

6 38

7-

-19

6 38

719

6 38

7-

100.

0%19

0 42

619

0 42

6

Hig

her e

duca

tion

inst

itutio

ns-

--

--

--

-

Fore

ign

gove

rnm

ents

and

inte

rnat

iona

l or

gani

satio

ns

--

--

--

-

Publ

ic c

orpo

ratio

ns a

nd p

rivat

e en

terp

rises

515

--

515

-51

52

234

2 23

4

Non

-pro

fit in

stitu

tions

1

000

--

1 00

01

000

-10

0.0%

144

144

Hou

seho

lds

--

--

--

143

143

Gift

s an

d do

natio

ns-

--

--

--

-

APP

ROPR

IATI

ON

STA

TEM

ENT

For t

he y

ear e

nded

31

Mar

ch 2

014



2013

/14

2012

/13

Prog

ram

me

3 pe

r Eco

nom

ic

Clas

sific

atio

nA

djus

ted

App

ropr

iatio

nSh

iftin

g of

Fu

nds

Vire

men

tFi

nal

App

ropr

iatio

nA

ctua

l Ex

pend

iture

Vari

-an

ceEx

pend

iture

as

% o

f Fin

al

App

ropr

iatio

n

Fina

l A

ppro

pria

-tio

n

Act

ual

Expe

ndi-

ture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

Paym

ent

for

capi

tal a

sset

s

Build

ings

and

oth

er fi

xed

stru

ctur

es-

--

--

--

--

Mac

hine

ry a

nd e

quip

men

t-

--

--

--

--

Her

itage

ass

ets

--

--

--

--

-

Spec

ialis

ed m

ilita

ry a

sset

s-

--

--

--

--

Biol

ogic

al a

sset

s-

--

--

--

--

Land

and

sub

soil

asse

ts

--

--

--

--

-

Inta

ngib

le a

sset

s-

--

--

--

--

Paym

ents

for fi

nanc

ial a

sset

s-

--

--

--

--

Tota

l29

3 11

3-

-29

3 11

328

5 98

67

127

97.6

%27

0 22

626

6 63

2 A

PPRO

PRIA

TIO

N S

TATE

MEN

T Fo

r the

yea

r end

ed 3

1 M

arch

201

4



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 State-ments.

4. Explanations of material variances from Amounts Voted (after virement):

4.1 Per programmeAdministration

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

205 789 185 140 20 649 10

The underexpenditure relates to outstanding payments on projects due to late submission of invoices. In other cases the deliverables on the project plans were not finalised, and a number of invoices had to be returned back to the suppliers as they were identified as being inconsistent with the orders in terms of the recorded amounts. The delay in the procurement of services for projects that were budgeted for in the 2013/14 financial year was because some of these projects started late and will continue into the 2014/15 financial year. Also, the underspending on capital expenditure relates to the non-procurement of laptops and vehicles for the senior vacancies that were not filled in the current year. We anticipated more staff and budgeted for laptops and fleet in the 2013/14 budget. These vacancies will be filled in the 2014/15 year end.

Economic development

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

887 573 881 038 6 535 1

The underexpenditure is due to non-filling of the vacant posts due to unavailability of the professionals (sector specialists) in the mar-ket, delay in payment, the finalisation of the Legislative Review and Policy Development project for Consumer Protection, and delay in payment of invoices for services rendered in March, Nelson Mandela Bay Municipality Coastal Setback Lines public participation process, i.e. World Consumer Right Day etc., and non payment of Ngqushwa Municipality and the LRED Project due to unavailability of credible standards of financial reporting from this municipality and projects.

Environmental affairsFinal Appropriation Actual Expenditure Variance R’000 Variance as a % of Final

Appropriation

293 113 285 986 7 127 2.4

Underexpenditure is due to non-filling of vacant posts. The underexpenditure is due to delay in payment of gazetting for EC Coastal Management Programme, cancellation of programme meetings, delay in uniform procured, delay in the implementation of the Nelson Mandela Bay Municipality Coastal Setback Lines public participation process, and delay in finalising provincial, national and international environmental celebrated days promotional material. The under expenditure is due to delay in finalising the compliance and procurement processes for Maloti Drakensberg Trans frontier Programme.

A. NOTES TO THE APPROPRIATION STATEMENT



Final Appropriation Actual Expenditure Variance Variance as a % of Final Appropriation

R’000 R’000 R’000 %

4.2 Per economic classification

Current payments

Compensation of employees 201 354 192 839 8 515 4.2

Goods and services 126 451 106 068 20 383 16.1

Interest and rent on land

Unauthorised expenditure approved

Transfers and subsidies

Provinces and municipalities 12 123 11 723 400 3.3

Departmental agencies and accounts 984 223 984 223 0 -

Higher education institutions 11 064 11 064 0 -

Public corporations and private enterprises29 689 28 827 862 2.9

Foreign governments and international organisations

- - - -

Non-profit institutions 1 000 1 000 0 -

Households 1243 1179 64 5.1

Gifts and donations - - - -

Payments for capital assets

Buildings and other fixed structures - - - -

Machinery and equipment 20 980 14 890 6 090 29

Heritage assets - - - -

Specialised military assets - - - -

Biological assets - - - -

Land and subsoil assets - - - -

Intangible assets - - - -

Payments for financial assets - 351 (351) -

The underexpenditure is due to non-filling of the vacant posts due to unavailability of the professional staff (sector specialists and environmental specialists). Outstanding payments on projects due to non-finalisation of deliverables according to the project plans caused late submission of invoices. Also, the variance is due to delay in the finalisation of the legislative Review and Policy Development for Consumer Protection, and delay in payment of invoices for services rendered in March i.e. World Consumer Right Day and the Economic Symposium Conference etc. It has been identified that payment of gazetting for the EC Coastal Management Programme and the implementation of Nelson Mandela Bay Municipality Coastal Setback Lines public participation process caused the underspending, as well as finalising provincial, national and international environmental celebrated days promotional material, non- payment of the MDTP, and over projection of leave gratuities as injuries on duty are difficult to project. Capital underexpenditure is due to the delay in the purchase of furniture for a training room. Underexpenditure on the capital assets is due to the non-procurement of motorbikes for the Green Scorpions as well as underspending due to non-procurement of laptops and vehicles for the vacancies that were not filled in the current year. Included in the 2013/14 budget we anticipated more staff and budgeted for laptops and fleet. These vacancies will be filled in the 2014/15 year end.

A. NOTES TO THE APPROPRIATION STATEMENT CONTINUED



Note 2013/14 2012/13

R’000 R’000

REVENUE

Annual appropriation 1 1 386 475 833 716

Statutory appropriation 2 1 652 1 652

Departmental revenue 3 - 97 941

TOTAL REVENUE 1 388 127 933 309

EXPENDITURE

Current expenditure

Compensation of employees 4 194 492 182 497

Goods and services 5 106 068 101 206

Total current expenditure 300 560 283 703

Transfers and subsidies

Transfers and subsidies 6 1 038 015 512 642

Total transfers and subsidies 1 038 015 512 642

Expenditure for capital assets

Tangible assets 7 14 890 10 953

Total expenditure for capital assets 14 890 10 953

Payments for financial assets 8 351 109

TOTAL EXPENDITURE 1 353 816 807 407

SURPLUS/(DEFICIT) FOR THE YEAR 34 311 125 902

Reconciliation of Net Surplus/(Deficit) for the Year

Voted funds 34 311 27 961

Annual appropriation 34 311 27 961

Departmental revenue and NRF Receipts - 97 941

SURPLUS/(DEFICIT) FOR THE YEAR 34 311 125 902

B. STATEMENT OF FINANCIAL PERFORMANCE



Note 2013/14 2012/13

R’000 R’000

ASSETS

Current assets 14 074 16 403

Cash and cash equivalents 9 9 235 13 798

Receivables 10 4 839 2 605

Loans 11 - -

Non-current assets 447 690 447 229

Investments 12 427 590 427 590

Loans 11 20 100 19 639

TOTAL ASSETS 461 764 463 632

LIABILITIES

Current liabilities 13 907 15 093

Voted funds to be surrendered to the Revenue Fund 13 (567) 805

Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund

14 10 568 13 942

Payables 15 3 906 346

Non-current liabilities - -

TOTAL LIABILITIES 13 907 15 093

NET ASSETS 447 857 448 539

Represented by:

Capitalisation reserve 427 590 427 590

Recoverable revenue 20 267 20 949

Retained funds - -

Revaluation reserves - -

TOTAL 447 857 448 539

C. STATEMENT OF FINANCIAL POSITION



NET ASSETS Note 2013/14 R’000

2012/13 R’000

Capitalisation Reserves

Opening balance 427 590 421 375

Transfers:

Movement in Equity - -

Movement in Operational Funds - -

Other movements - 6 215

Closing balance 427 590 427 590

Recoverable revenue


Transfers: (682) 6 272

Debts recovered (included in departmental receipts) - -

Debts raised (682) 6 272


Retained funds - -

Opening balance - -

Transfer from voted funds to be surrendered (Parliament/Legislatures ONLY)- -

Utilised during the year- -

Other - -

Closing balance

Revaluation Reserve -

Opening balance - -

Revaluation adjustment (Housing departments) - -

Transfers - -

Other - -

Closing balance

TOTAL 447 857 448 539

D. STATEMENT OF CHANGES IN NET ASSETS



Note 2013/14 2012/13

R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 1 479 115 1 025 523

Annual appropriated funds received 1.1 1 351 597 806 560

Statutory appropriated funds received 2 1 652 1 652

Departmental revenue received 3 125 535 216 836

Interest received 3.3 331 475

Net (increase)/decrease in working capital 1 326 (403)

Surrendered to Revenue Fund (130 045) (212 911)

Surrendered to RDP Fund/Donor - -

Current payments (300 560) (283 703)

Payments for financial assets (351) (109)

Transfers and subsidies paid (1 038 015) (512 642)

Net cash flow available from operating activities 16 11 470 15 755

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for capital assets 7 (14 890) (10 953)

(Increase)/decrease in loans 11 (461) (6 334)

(Increase)/decrease in investments - (6 215)

Net cash flows from investing activities (15 351) (23 502)

CASH FLOWS FROM FINANCING ACTIVITIES

Increase/(decrease) in net assets (682) 12 487

Net cash flows from financing activities (682) 12 487

Net increase/(decrease) in cash and cash equivalents (4 563) 4 740

Cash and cash equivalents at beginning of period 13 798 9 058

Cash and cash equivalents at end of period 17 9 235 13 798

E. STATEMENT OF CASH FLOW



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.

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 Modified Cash Standard as prescribed and relevant guidelines specified / issued by the National Treasury.The Annual Financial Statements presented fairly reflect the primary and secondary information of the Department.

2 Going concern The financial statements have been prepared on a going concern basis.

3 Presentation currencyAmounts 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 translationCash flows arising from foreign currency transactions are translated into South African Rand using the exchange rates prevailing at the date of payment/receipt.

6 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 fundsAppropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation).Appropriated funds are recognised in the Statement of Financial Performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the Statement of Financial Performance on the date the adjustments become effective.The net amount of any appropriated funds due to/from the relevant revenue fund at the reporting date is recognised as a payable/receivable in the statement of financial position.

7.2 Departmental revenue Departmental revenue is recognised in the Statement of Financial Performance when received and is subsequently paid into the relevant revenue fund, unless stated otherwise.Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the statement of financial position.

7.3 Accrued departmental revenue Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the financial statements when:it is probable that the economic benefits or service potential associated with the transaction will flow to the Department; andthe 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.

8 Expenditure

8.1 Compensation of employees

8.1.1 Salaries and wagesSalaries and wages are recognised in the Statement of Financial Performance on the date of payment.

F. ACCOUNTING POLICIES



8.1.2 Social contributionsSocial 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.

8.1.3 Employee benefitsShort-term employee benefits that give rise to a present legal or constructive obligation in the disclosure notes to the financial statements. These amounts are not recognised in the Statement of Financial Performance or statement of financial position.

8.2 Other expenditureOther 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 Accrued expenditure payableAccrued expenditure payable is recorded in the notes to the financial statements when the goods are received or, in the case of services, when they are rendered to the Department.Accrued expenditure payable is measured at cost.

8.4 Leases

8.4.1 Operating leasesOperating lease payments made during the reporting period are recognised as current expenditure in the Statement of Financial Performance on the date of payment.The operating lease commitments are recorded in the notes to the financial statements.

8.4.2 Finance leases Finance lease payments made during the reporting period are recognised as capital expenditure in the Statement of Financial Performance on the date of payment.The finance lease commitments are recorded in the notes to the financial statements and are not apportioned between the capital and interest portions. Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of:cost, being the fair value of the asset; orthe sum of the minimum lease payments made, including any payments made to acquire ownership at the end of the lease term, excluding interest.

9 Aid Assistance

9.1 Aid assistance receivedAid assistance received in cash is recognised in the Statement of Financial Performance when received. In-kind aid assistance is recorded in the notes to the financial statements on the date of receipt and is measured at fair value.Aid assistance not spent for the intended purpose and any unutilised funds from aid assistance that are required to be refunded to the donor are recognised as a payable in the statement of financial position.

9.2 Aid assistance paidAid assistance paid is recognised in the Statement of Financial Performance on the date of payment. Aid assistance payments made prior to the receipt of funds are recognised as a receivable in the statement of financial position.

10 Cash and cash equivalentsCash 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.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.

11 Prepayments and advancesPrepayments 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.There were no prepayments identified in the current year.

12 Loans and receivablesLoans 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.

13 InvestmentsInvestments are recognised in the statement of financial position at cost.

F. ACCOUNTING POLICIES CONTINUED



14 Impairment of financial assetsWhere there is an indication of impairment of a financial asset, an estimation of the reduction in the recorded carrying value, to reflect the best estimate of the amount of the future economic benefits expected to be received from that asset, is recorded in the notes to the financial statements.

15 PayablesLoans and payables are recognised in the statement of financial position at cost.

16 Capital Assets

16.1 Immovable capital assets

RecognitionCapital assets are initially recognised if they meet the following criteria:- It is probable that future economic benefits or service potential will flow to the Department; and- The cost or fair value of the asset can be reliably measured.

MeasurementImmovable capital assets are initially recorded in the notes to the financial statements at cost. Immovable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition. Where the cost of immovable capital assets cannot be determined accurately, the immovable capital assets are measured at R1 unless the fair value of the asset has been reliably estimated, in which case the fair value is used. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) are recorded at R1.Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the immovable asset is recorded by another department in which case the completed project costs are transferred to that department.

Presentation and disclosureCapital assets purchased are recorded as expenditure under “expenditure for capital assets” in the Statement of Financial Performance.Capital assets are also recorded on the notes to the financial statements where details of opening balance, additions, disposals and closing balance are provided.Details on capital work in progress are shown in the annexures to the financial statements.

16.2 Movable capital assets

RecognitionCapital assets are initially recognised if they meet the following criteria:It is probable that future economic benefits or service potential will flow to the department; andThe cost or fair value of the asset can be reliably measured.

MeasurementMovable 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 accurately, 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) are 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 is added to the cost of the asset at the end of the capital project unless the movable asset is recorded by another department/entity in which case the completed project costs are transferred to that department.

Presentation and disclosureCapital assets purchased are recorded as expenditure under “expenditure for capital assets” in the Statement of Financial Performance.Capital assets are also recorded on the notes to the financial statements where details of opening balance, additions, disposals and closing balance are provided.Details on capital work in progress are shown in the annexures to the financial statements.




16.3 Intangible assetsIntangible 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 accurately, 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) are recorded at R1.Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the intangible asset is recorded by another department/entity in which case the completed project costs are transferred to that department.

17 Provisions and Contingents

17.1 ProvisionsProvisions are recorded in the notes to the financial statements when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation and a reliable estimate of the obligation can be made. The provision is measured as the best estimate of the funds required to settle the present obligation at the reporting date.

17.2 Contingent liabilitiesContingent liabilities are recorded in the notes to the financial statements when there is a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department or when there is a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably.

17.3 Contingent assetsContingent assets are recorded in the notes to the financial statements when a possible asset arises from past events, and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not within the control of the Department.

17.4 Commitments Commitments 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.

18 Unauthorised expenditureUnauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either:approved by Parliament or the Provincial Legislature with funding and the related funds are received; orapproved by Parliament or the Provincial Legislature without funding and is written off against the appropriation in the Statement of Financial Performance; ortransferred to receivables for recovery.Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure.

19 Fruitless and wasteful expenditureFruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred. Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or transferred to receivables for recovery.Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.

20 Irregular expenditureIrregular 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.

21 Changes in accounting estimatesThere were no changes in accounting estimates or correction of errors.




22 Prior period errors

Tangible capital assetsThere is an adjustment relating to the omission of cell phones in the prior year. Refer to note 32 and 36 for further details.

Transfers and subsidies unspentThere is an adjustment to the disclosure of unspent transfers and subsidies to agencies and municipalities for the prior year. Refer to note 6 for details.

Related PartiesThere was an adjustment to the related party disclosure note comparative figures due to a change in accounting policy. Refer to note 26 and 36 for details

ReclassificationThe following items were reclassified during the financial year and the comparative have been restated as a result:- Inventory- Learnerships- GiftsRefer to note 5 for details

23 Non-adjusting events after the reporting dateThere are no adjusting events identified. The following non-adjusting events were identified.- Appointment of the new Member of the Executive Council.- Transfer of shares in East London Industrial Development Zone not completed at year end.

24 Agent-Principal arrangementsThere are no Agent-Principal arrangements entered into in the current year.

25 Related party transactionsTransactions and balances with related parties falling under the same MEC’s portfolio are included in the disclosure notes, except for those transactions that occur within normal supplier and/or client/recipient relationships on terms and conditions no more or less favourable than those which it is reasonable to expect the entity to have adopted if dealing with that individual entity or person in the same circumstances; and terms and conditions within the normal operating parameters established by that reporting department’s legal mandate.A related party is a person or an entity with the ability to control or jointly control the other party, or exercise significant influence over the other party, or vice versa, or an entity that is subject to common control, or joint control.Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the Department.Close members of the family of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity (where these individuals are paid by the Department)

26 Recoverable RevenueAmounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the Statement of Financial Performance when written-off.

27 Capitalization ReserveThe capitalisation reserve comprises of financial assets and/or liabilities originating in a prior reporting period but which are recognised in the statement of financial position for the first time in the current reporting period. Amounts are recognised in the capitalisation reserves when identified in the current period and are transferred to the National/Provincial Revenue Fund when the underlying asset is disposed and the related funds are received.

28 Key management personnelCompensation paid to key management personnel including their family members where relevant, is included in the disclosure notes.




1. ANNUAL APPROPRIATION1.1 Annual appropriation

Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds) and Provincial Departments:

2013/14 2012/13

FinalAppropriation

R’000

Actual Funds Received

R’000

Funds notrequested/not

received R’000

Appropriationreceived

R’000

Administration 205 789 184 575 21 214 177 852

Economic Development 887 573 881 035 6 538 366 282

Environment affairs 293 113 285 987 7 126 262 426

Total 1 386 475 1 351 597 34 878 806 560

At the end of the financial year the Department was not in a position to request the remainder of its allocated budget from Provincial Planning & Treasury as there as there were no invoices or payments at hand to be processed. Requests against the budget are submit-ted to Treasury based on the payments to be processed. However, the Department has over 19 million which consists of commit-ments and accruals. The rollover application has been submitted to Provincial Planning and Treasury to request the funds to be used in the following financial year.

1.2 Conditional grants

Note 2013/14 2012/13

R’000 R’000

Total grants received 35 550 -

- -

Provincial grants included in Total Grants received

2013/14 2012/13

2. STATUTORY APPROPRIATION R’000 R’000

President and Deputy President salaries - -

Member of Executive Committee/Parliamentary Officers 1 652 1 652

Judges and magistrates salaries - -

Sector education and training authorities (SETA) - -

National Skills Fund - -

Total 1 652 1 652

Actual Statutory Appropriation Received 1 652 1 652

G. NOTES TO THE ANNUAL FINANCIAL STATEMENTS



G. NOTES TO THE ANNUAL FINANCIAL STATEMENTS CONTINUED

2013/14 2012/13

R’000 R’000

3. DEPARTMENTAL REVENUE

Tax revenue 123 484 122 525

Sales of goods and services other than capital assets 3.1 802 763

Fines penalties and forfeits 3.2 818 1 155

Interest dividends and rent on land 3.3 331 475

Transactions in financial assets and liabilities 3.4 431 92 393

Total revenue collected 125 866 217 311

Less: Own revenue included in appropriation 14 125 866 119 370

Departmental revenue collected - 97 941

The revenue included in appropriation is R126 533 000, the Department has under collected by R667 000. The under collection was mainly on horse racing taxes and liquor licenses. Due to current economic conditions and high level of unemployment people are choosing to spend their money on essential items rather than betting and gambling.

Note 2013/14 2012/13

R’000 R’000

3.1 Sales of goods and services other than capital assetsSales of goods and services produced by the department 3 802 763

Sales by market establishment - -

Administrative fees - -

Other sales 802 763

Total 802 763

3.2 Fines penalties and forfeits3

Fines 818 1 155

Penalties - -

Forfeits - -

Total 818 1 155

3.3 Interest dividends and rent on land

Interest 331 475

Dividends - -

Rent on land - -

Total 331 475



3.4 Transactions in financial assets and liabilities

Other Receipts including Recoverable Revenue 431 92 393

Gains on GFECRA -

Total 431 92 393

2013/14 2012/13

4. COMPENSATION OF EMPLOYEES R’000 R’000

4.1 Salaries and wages

Basic salary 137 962 128 435

Performance award 780 886

Service Based 244 605

Compensative/circumstantial 1 578 1 211

Periodic payments - -

Other non-pensionable allowances 27 986 26 733

Total 168 550 157 870

Learnerships have been reclassified to compensation of employees from other operating expenditure, refer to note 5 for details.

Compensative/circumstantial as previously stated 1 201

Learnership reclassified 10

Compensative/circumstantial as restated 1 211

4.2 Social contributions

Employer contributions

Pension 17 147 15 847

Medical 8 759 8 747

Bargaining council 36 33

Total 25 942 24 627

Total compensation of employees 194 492 182 497

Average number of employees 623 607

There is a 6.5% increase on compensation for employees which is due to the annual salaries increment of 6.5%.




Note 2013/14 2012/13

R’000 R’000

5. GOODS AND SERVICES

Administrative fees 177 70

Advertising 4 329 1 612

Minor assets 5.1 728 536

Bursaries (employees) 1 286 1 859

Catering 1 488 1 281

Communication 3 724 7 141

Computer Services 5.2 9 349 9 842

Consultants contractors and agency/outsourced services 5.3 13 721 23 048

Audit cost – external 5.4 3 447 4 897

Fleet services 5 491 2 795

Inventory 5.5 561 2 049

Consumables 5.6 3 013 2 462

Operating leases 18 510 14 710

Property payments 5.7 3 401 3 607

Rental and hiring 70 -

Travel and subsistence 5.8 25 147 18 980

Venues and facilities 7 806 4 401

Training and development 1 302 2 717

Other operating expenditure 5.9 2 518 1 248

Total 106 068 101 206

There is an increase of 6% when comparing prior year numbers is related to the increase on inflation of 5% to 6%. See below for detailed explanations




Reclassification of Learnership Expenditure:

As per the Treasury guide issued for the 2013/2014 financial statements learnerships were reclassified from other operating expenditure to compensation of employees due to the reallocation of SCOA and Reimplementation of 2013/14.

In order to achieve fair and consistent financial statements the comparative figures have been adjusted.

Other operating expenditure as previously statedGifts reclassified

1 266(8)

Learnership reclassified (10)

Other operating expenditure as restated 1 248

5.1 Minor assets 2013/14 2012/13

R’000 R’000

Tangible assets 728 536

Buildings and other fixed structures - -

Biological assets - -

Heritage assets - -

Machinery and equipment 728 536

Transport assets - -

Specialised military assets - -

Total 728 536

Increase in minor assets as a result of equipment bought for a training room in King William Town offices. Also senior vacancies were filled in the current year resulting to more office equipment bought.

Note 2013/14 2012/13

R’000 R’000

5.2 Computer services 5

SITA computer services 4 325 8 198

External computer service providers 5 024 1 644

Total 9 349 9 842

The movement in the computer service is reasonable when compared to prior year. The increase on External computer service pro-viders is a result of operating system development in the current year. Most of the software licences were paid in the prior year for SITA computer services.




5.3 Consultants contractors and agency/outsourced services

Business and advisory services 5 5 482 14 482

Infrastructure and planning - -

Laboratory services - -

Legal costs 4 415 4 817

Science and technology - -

Contractors 1 526 904

Agency and support/outsourced services 2 298 2 845

Total 13 721 23 048

Business advisory has decreased in the current year significantly due to some consulting contracts that expired and were not renewed.

5.4 Audit cost - External

Regularity audits 5 3 447 4 897

Performance audits - -

Investigations - -

Environmental audits - -

Computer audits - -

Total 3 447 4 897

The decrease on the audit fee is due to timing difference as we only pay the audit fees in the following year.

5.5 Inventory 2013/14 2012/13

R’000 R’000

Clothing material and accessories 5 534 -

Farming supplies - -

Food and food supplies - -

Fuel oil and gas - -

Learning teaching and support material - -

Materials and supplies - -

Medical supplies - -

Medicine - -

Medsas inventory interface - -

Other supplies 27 -

Total 561 -

Inventory has been reclassified to consumables for disclosure purposes. Please refer to note 5.6 for further explanations




5.6 Consumables

Consumable supplies 5 1 406 2 462

Uniform and clothing 382 -

Household supplies 296 -

Building material and supplies 302 -

Communication accessories - -

IT consumables 88 -

Other consumables 338 2 462

Stationery printing and office supplies 1 607 -

Total 3 013 2 462

These items were classified as inventory in the prior year.The Department has reclassified some of the items that did not meet the new definition of inventory to consumables. In order to achieve consistent reporting and fair presentation as per the Modified Cash Standard the department has reclassified comparative figures. The non-essential items to the operations of the department are disclosed as consumables. Included on the other consum-ables from prior year disclosures is (Fuel oil and gas, Materials and supplies and Food and food supplies).

2013/2014 2012/2013

R’000 R’000

Inventory as previously stated 246

Other consumables 622

Printing and stationery 1 427

Materials and supplies Gifts

1598

Reclassification to other consumables (2 462)

Inventory as restated -

5.7 Property payments

Municipal services 5 367 1 051

Property management fees - -

Property maintenance and repairs 10 -

Other 3 024 2 556

Total 3 401 3 607

5.8 Travel and subsistence 5

Local 25 033 18 175

Foreign 114 805

Total 25 147 18 980

G. NOTES TO THE ANNUAL FINANCIAL STATEMENTS CONTINUEDG. NOTES TO THE ANNUAL FINANCIAL STATEMENTS CONTINUED



There has been an increase on travel and subsistence in the current year when compared to prior years due to employees traveling for study purposes. Most staff members who have bursaries from the Department attend classes out of the province. There was an increase on parking fees and accommodation fees.

5.9 Other operating expenditure 2013/2014 2012/2013

R’000 R’000

Learnership 5 -

Professional bodies membership and subscription fees 362 68

Resettlement costs 530 1 043

Other 1 626 137

Total 2 518 1 248

Prior year “learnerships” amounts were reallocated due to the SCOA. Refer to note 5 for further details.

6. TRANSFERS AND SUBSIDIES

Note

Provinces and municipalities Annex 1A 11 723 2 100

Departmental agencies and accounts Annex 1B 984 223 469 954

Higher education institutions Annex 1C 11 064 1 695

Public corporations and private enterprises Annex 1D 28 827 35 692

Non-profit institutions Annex 1E 1 000 144

Households Annex 1F 1 178 1 059

Gifts donations and sponsorships made Annex 1H - 1 998

Total 1 038 015 512 64

Unspent funds transferred to the above beneficiaries 300 582 43 268

The increase in transfers is due to the increase on projects undertaken by the entities sub departments. One of the new projects started in the current year is the Infrastructure Development Project which amounted to R 330m. There is also the shale gas research project which is done by the NMMU amounting to R 8m and R 1.1m to University of Fort Hare for the Institute of Cooperative Develop-ment. R 10m was for the Home of Legends and was paid to ECPTA. R 9167mil was for the ECDC (Automotive Industry Development Cooperation).

Prior Period ErrorAn error was identified in the current year relating to unspent funds transferred to the above beneficiaries.

Unspent as previously stated 9 854

Adjustment 33 414

Unspent as restated 43 268

G. NOTES TO THE ANNUAL FINANCIAL STATEMENTS CONTINUEDG. NOTES TO THE ANNUAL FINANCIAL STATEMENTS CONTINUED



7. EXPENDITURE FOR CAPITAL ASSETS Note 2013/14 2012/13

R’000 R’000

Tangible assets 14 890 10 953

Buildings and other fixed structures - -

Heritage assets - -

Machinery and equipment 32.1 14 890 10 953

Specialised military assets - -

Land and subsoil assets - -

Biological assets - -

Intangible assets

Software - -

Mastheads and publishing titles - -

Patents licences copyright brand names trademarks - -

Recipes formulae prototypes designs models - -

Services and operating rights - -

Total 14 890 10 953

7.1 Analysis of funds utilised to acquire capital assets – 2013/2014

Voted funds Aid assistance Total

R’000 R’000 R’000

Tangible assets 14 890 - 14 890

Buildings and other fixed structures - - -

Heritage assets - - -

Machinery and equipment 14 890 - 14 890

Specialised military assets - - -

Land and subsoil assets - - -

Biological assets - - -

Intangible assets

Software - - -

Mastheads and publishing titles - - -

Patents licences copyright brand names trademarks - - -

Recipes formulae prototypes designs models - - -

Services and operating rights - - -

Total 14 890 - 14 890




Finance lease expenditure included in Expenditure for capital assets

Tangible assets -

Building and other fixed structures -

Heritage assets -

Machinery and equipment 11 513

Specialised military assets -

Land and subsoil assets -

Biological Assets

Total 11 513

7.1 Analysis of funds utilised to acquire capital assets – 2013/2014 (continued)

Votedfunds

Aid assistance Total

R’000 R’000 R’000

Tangible assets 10 953 - 10 953

Buildings and other fixed structures - - -


Machinery and equipment 10 953 - 10 953

Specialised military assets - - -

Land and subsoil assets - - -

Biological assets - - -

Intangible assets - - -

Software - - -

Mastheads and publishing titles - - -

Patents licences copyright brand names trademarks - - -

Recipes formulae prototypes designs models - - -

Services and operating rights - - -

Total 10 953 - 10 953




Note 2013/14 2012/13

R’000 R’000

8. PAYMENT FOR FINANCIAL ASSETS

Material losses through criminal conduct 351 109

Theft 351 109

Other material losses - -

Total 351 109

More bad debts were written of in the current year when compared to prior year. On assessing the debt account some of the debt we assessed to be irrecoverable as these debtors are not employed and some are deceased.

9. CASH AND CASH EQUIVALENTS

Consolidated Paymaster General Account 9 235 13 822

Cash receipts - 5

Disbursements - (29)

Cash on hand - -

Total 9 235 13 798

The R 9.2m relates to the revenue received at year end. This amount will be surrendered to Provincial Treasury.

10. RECEIVABLES

2013/14 2012/13

R’000 R’000 R’000 R’000 R’000

NoteLess than one year

One to three years

Older than three years

Total Total

Recoverable

Claims recoverable 10.1Annex 4 23 23 25

Recoverable expenditure 10.2 3

Staff debt 10.3 2 854 448 1 514 4 816 2 577

Total 2 854 448 1 537 4 839 2 605




Note 2013/14 2012/13

R’000 R’000

10.1 Claims recoverable 10

National departments 7 20

Provincial departments 16 5

Foreign governments

Total 23 25

10.2 Recoverable expenditure 10

Income Tax - 3

Total - 3

10.3 Staff debt 10

Debt Account 4 816 2 577

Total 4 816 2 577

The increase relate to a contingent asset of R 2 399 000 that was recognised as an asset in the current year. This related to debt recover-able from employees that were incorrectly overpaid in the prior financial years.




10.4 Impairment of receivables 29

Estimate of impairment of receivables - 1 809

Total - 1 809

11. LOANS

Public corporations - -

Universities and technicians - -

Foreign governments - -

Private enterprises 20 100 19 639

Non-profit institutions - -

Staff loans - -

Total 20 100 19 639

Analysis of Balance


New Issues 990 6 334

Repayments (529) -

Write-offs - -


There was an increase of R 990 000 on loans in the current year. The increase on loans is less then prior years because this was the last year of these fund/loans. The funds allocated for these loans have been exhausted. This was the last batch of loans to be issued.

11.1 Impairment of loans 2013/14 2012/13

R’000 R’000

Estimate of impairment of loans 14 796 12 627

Total 14 796 12 627




12. INVESTMENTS 2013/14R’000

2012/13R’000

Non-Current

Shares and other equity

Eastern Cape Development Corporation-Share Capital Annex 2A 427 590 427 590

Total 427 590 427 590

Analysis of non-current investments


Additions in cash - -

Disposals for cash - -

Non-cash movements - 6 215


13. VOTED FUNDS TO BE SURRENDERED TO THE REVENUE FUND

Opening balance 805 1 567

As restated 805 1 567

Transfer from Statement of Financial Performance (as restated)34 311 27 961

Voted funds not requested/not received 1.1 (34 878) (27 156)

Paid during the year (805) (1 567)

Closing balance (567) 805

The movement on the amount to be surrendered is due to the fact that the Department did not request all its funds.

14. DEPARTMENTAL REVENUE AND NRF RECEIPTS TO BE SURRENDERED TO THE REVENUE FUND

Note 2013/14 2012/13

R’000 R’000


As restated 13 942 7 975

Transfer from Statement of Financial Performance (as restated) - 97 941

Own revenue included in appropriation 125 866 119 370

Paid during the year (129 240) (211 344)





Note 2013/14 2012/13

15. PAYABLES – CURRENT

Clearing accounts 15.1 3 906 346

Total 3 096 346

Debt receivable interest income is used when debt is raised on a closed financial year as the Department has raised the HROPT debt. The debt receivable account was credited with all the debt raised.

15.1 Clearing accounts 15

Sal:acb recallDebt receivable interestSal:pension fundSal:income taxCheques payablesUnpaid/rc bas ebt control acc:domSal:ebt control

-3 876

1119

---

54214

--

201

57

Total 3 906 346

16. NET CASH FLOW AVAILABLE FROM OPERATING ACTIVITIES

Net surplus/(deficit) as per Statement of Financial Performance34 311 125 902

Add back non cash/cash movements not deemed operating activities (22 841) (110 147)

(Increase)/decrease in receivables – current (2 234) (155)

(Increase)/decrease in prepayments and advances - 121

Increase/(decrease) in payables – current 3 560 (369)

Expenditure on capital assets 14 890 10 953

Surrenders to Revenue Fund (130 045) (212 911)

Voted funds not requested/not received (34 878) (27 156)

Own revenue included in appropriation 125 866 119 370

Net cash flow generated by operating activities 11 470 15 755




17. RECONCILIATION OF CASH AND CASH EQUIVALENTS FOR CASH FLOW PURPOSES

Note 2013/14 2012/13

R’000 R’000

Consolidated Paymaster General Account 9 235 13 822

Cash receipts - 5

Disbursements - (29)

Total 9 235 13 798

18. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

1.8.1 Contingent liabilities

Liable to Nature 2013/14 2012/13

R’000 R’000

Motor vehicle guarantees

Employees Annex 3A - -

Housing loan guarantees Employees Annex 3A 83 174

Other guarantees Annex 3A - -

Claims against the Department Court cases Annex 3B 10 770 8 505

Intergovernmental payables (unconfirmed balances)

Annex 5 - -

Environmental rehabilitation liability Annex 3B - -

Other Annex 3B - -

Total 10 853 8 679

1.8.2 Contingent assets

Nature of contingent asset

2nd and 3nd notch payments-HROPT - 2 399

MS E Kirchner case 88 -

Total 88 2 399




The R 2 399 000 in contingent assets from the prior year was recognised as debtors as it was probable and met the definition of an asset in the current financial year.

19. COMMITMENTSNote 2013/14 2012/13

R’000 R’000

Current expenditure

Approved and contracted 14 566 10 949

Approved but not yet contracted - 1 013

Capital expenditure

Approved and contracted - -

Approved but not yet contracted - -

Total Commitments 14 566 11 962

Of the approved current year commitments their aging is as follows:

Due within 1 year

R’000

Due within more than 1

yearR’000

Approved and contracted 7 942 6 624

20. ACCRUALS

Listed by economic classification

30 Days 30+ Days Total Total

Goods and services 4 149 1 277 5 426 3 910

Interest and rent on land - - - -

Transfers and subsidies - - - -

Capital assets - - - -

Other - - -

Total 4 149 1 277 5 426 3 910

Listed by programme level

Administration 3 336 2 403

Economic Development 1 153 1 136

Environmental Affairs 937 371

Total 5 426 3 910




Confirmed balances with other departments Annex 5 - 473

Confirmed balances with other government entities Annex 5- -

Total - 473

21. EMPLOYEE BENEFITS 2013/14 2012/13

R’000 R’000

Leave entitlement 9 742 8 074

Service bonus (Thirteenth cheque) 5 458 5 099

Performance awards 952 819

Capped leave commitments 19 591 18 869

Other - -

Total 35 743 32 861

Included in the leave entitlement and capped leave commitment balances are negative leave balances to the value of R318 960 negative leave balance arose due to delays in approved leave forms having been captured on the PERSAL system thus resulting in available leave day balances not being updated at the time leave forms were approved.

22. LEASE COMMITMENTS

22.1 Operating leases expenditure

2013/14

Specialised military

equipment

Land Buildings and other fixed structures

Machinery and equipment

Total

Not later than 1 year - - - 11 020 11 020

Later than 1 year and not later than 5 years

- - - 8 246 8 246

Later than five years - - - - -

Total lease commitments - - - 19 266 19 266




2012/13


equipment



Total



- - - 4 473 4 473

Later than five years - - -

Total lease commitments - - 13 773 13 773

There were new lease entered into in the current year. These leases include security cameras and laptop leases.

Note 2013/14 2012/13

R’000 R’000

Rental earned on sub-leased assets - -

- -

Total

22.2 Finance leases expenditure

2013/14


equipment



Total



- - - 8 786 8 786

Later than five years - - - - -


2012/13


equipment



Total



- - - 8 108 8 108

Later than five years - - -





The finance lease consists of PABX (fax facility) and government fleet. One of the PABX lease contracts has been cancelled and most lease terms are elapsing. A Motor vehicles have been in use for over 2 years already and the commitment is for 3 years. Future com-mitment has decreased from 4 years to 3 years.

Note 2013/14 2012/13

R’000 R’000

23. ACCRUED DEPARTMENTAL REVENUETax revenue 11 569 6 579

Sales of goods and services other than capital assets - -

Fines, penalties and forfeits - -

Transaction in financial asset and liabilities 722 -

Interest dividends and rent on land 32 -

Total 12 323 6 579

Note 203/14 2012/13

23.1 Analysis of accrued departmental revenue R’000 R’000


Less: Amounts received (6 579) (9 269)

Add: Amounts recognised 12 323 6 579

Less: Amounts written-off/reversed as irrecoverable - -


24. IRREGULAR EXPENDITURE

24.1 Reconciliation of irregular expenditureNote 2013/14 2012/13

R’000 R’000


Add: Irregular expenditure – relating to prior year 2 591 -

Add: Irregular expenditure – relating to current year 30 407 9 288

Less: Prior year amounts condoned (15 641) (13 252)

Less: Current year amounts condoned (16 430) -

Less: Amounts recoverable (not condoned) - -

Less: Amounts not recoverable (not condoned) - -

Irregular expenditure awaiting condonation 19 317 18 389




Note 2013/14 2012/13

R’000 R’000

Analysis of awaiting condonation per age classification

Current year 13 978 9 288

Prior years 5 339 9 101

Total 19 317 18 389

The cause of the decrease in the irregular expenditure is as a result of the condoning of 85% of the prior year amount and 54.1% of current year amount. Proper investigations have been followed for all condoned items and relevant actions were taken.

Details of irregular expenditure – current year

Incident Disciplinary steps taken/criminal proceedings 2013/14R’000

Non-compliance with SCM procedures No criminal proceedings 12 818

Bid processes not followed No criminal proceedings 3 694

Procurement processes not followed No criminal proceedings 5 900

Human Resource Procedures not followed No criminal proceedings 1 072

Transfers to Municipalities in terms of budget/gazette

Under investigation 6 923

Total 30 407

Details of irregular expenditure condoned

Incident Condoned by (condoning authority) 2013/14R’000

Non-compliance with SCM processes Member of the Executive Council 32 071

Total 32 071




25. FRUITLESS AND WASTEFUL EXPENDITURE

25.1 Reconciliation of fruitless and wasteful expenditure

Note 2013/14 2012/13

R’000 R’000


Fruitless and wasteful expenditure – relating to prior year - -

Fruitless and wasteful expenditure – relating to current year 1 921 -

Less: Amounts resolved - (262)

Less: Amounts transferred to receivables for recovery - -

Fruitless and wasteful expenditure awaiting resolution 3 000 1 079

Included in the R 1 921 000 is the R 1 229 000 legal cost which would not have been incurred if the Department followed procedure.

Analysis of awaiting resolution per economic classification 2013/14R’000

2012/13R’000

Current 3 000 1 079

Capital - -

Total 3 000 1 079

25.2 Analysis of current year’s fruitless and wasteful expenditure

Incident Disciplinary steps taken/criminal proceedings

2013/14R’000

Legal fees for case lost and termination of contract Matter under investigation 1 246

Interest incurred on late payment Matter under investigation 29

Number of people attending not matching up to number catered for

Matter under investigation 13

Air tickets and accommodation cancellation Matter under investigation 5

Office rental space in Chris Hani Matter under investigation 628

Total 1 921




26. RELATED PARTY TRANSACTIONS

Revenue received

Tax revenue

Sales of goods and services other than capital assets - -

Fines, penalties and forfeits - -

Interest dividends and rent on land - -

Transactions in financial assets and liabilities - -

Transfers - -

Total - -

2013/14 2012/13

Payments made R’000 R’000

Goods and services 15 892 1 705

Interest and rent on land - -

Purchases of capital assets - -

Transactions in financial assets and liabilities - -

Transfers - -

Total 15 892 1 705

The changes to prior year figures are as a result of a change in the accounting policy as required by the Modified Cash Standard. The Department only disclosed transactions that are outside the normal course of business. Refer to Note 36 for further details.

Related parties Relationship

Eastern Cape Development Corporation Subsidiary

Eastern Cape Gambling & Betting Board Public entity in the same MEC portfolio

Eastern Cape Liquor Board Public entity in the same MEC portfolio

Eastern Cape Parks and Tourism Agency Public entity in the same MEC portfolio

Coega Development Corporation Public entity in the same MEC portfolio

East London Industrial Development Zone Public entity in the same MEC portfolio




27. KEY MANAGEMENT PERSONNEL

No. of Individuals 2013/14 2012/13

R’000 R’000

Political office bearers (provide detail below) 1 1 652 1 614

Officials:

Level 15 to 16 1 1 634 1 016

Level 14 (incl. CFO if at a lower level) 7 5 785 5 227

Family members of key management personnel - -

Total 9 071 7 857

The increase is due to the annual salary increase that happens every year and the higher pay grade of the new HOD. Also, the key management is evaluated differently which result in different increases on their pay structure

28. PUBLIC PRIVATE PARTNERSHIPNote 2013/14 2012/13

R’000 R’000

Contract fee received

- -

Contract fee paid 235

Fixed component - -

Indexed component 235 -

Analysis of indexed component 235

Compensation of employees 235 -

Goods and services (excluding lease payments) - -

Operating leases - -

Interest - -

Capital/(Liabilities)

Tangible rights - -

Intangible rights - -

Property - -

Plant and equipment - -

Loans - -

Other 67 -

Prepayments and advances

Pre-production obligations - -

Other obligations 67 -




The PPP agreement is between the DEDEAT and the GIZ which deals with identifying new sources of renewable energy. The agree-ment is based on the secondment of international renewable advisors to provide support to the Department. This PPP commenced on 15th January 2013 and will end on 31 January 2015.

29. IMPAIRMENT: OTHER

Note 2013/14 2012/13

R’000 R’000

Loan 14 796 12 627

Debtors - 1 809

Total14 796 14 436

Impairment on loans increased by R 2m in the current year because co-operatives were not honouring their payments. After further investigation and monitoring, it was identified that some of the co-operatives were struggling. Also, some of the co-operatives did not exist anymore. A further impairment was calculated based on the assessment of recoverability of the loans.

Imvaba Fund relates to the provincial co-operative loan fund which is administered by the ECDC on the Department’s behalf. The loans are secured by notary bonds over the movable assets of the co-operatives. Upon monitoring of the co-operatives, the Department has applied the following basis in calculating the impairment provision over the loans. The co-operatives have been grouped into the following categories:

1. Co-operatives that no longer exist/deregistered. (100% of the loan will be provided for since there is no entity to recover from);

2. Co-operatives that are technically solvent and operating, but have not been making repayments. (50% of the loan will be provided for as recovery is limited to movable assets whose value has depreciated and partial repayments subject to legal action);

3. Co-operatives that are technically insolvent and operating, but have not been making repayments. ( 75% of the loan will be pro-vided for as recovery is limited to movable assets whose value has depreciated); and

4. Co-operatives that are paying on an inconsistent basis (25% of the loan will be provided for, as the full amount cannot be recovered with inconsistent repayment).

Note 2013/14 2012/13

R’000 R’000

30. PROVISIONS

Claims recovery 22 25

Staff debts 1 484 372

Total 1 506 397

The above provisions relate to debts owing to the Department by employees and/or former employees of the Department. In calculating the provision the Department has considered the aging of the debts, and has provided for 100% of all debtor balances where there has been no movement for a period of 1 year. There is significant uncertainty on the recoverability of debt that is aged over a period of 1 year, based on prior experience.




30.1 Reconciliation of movement in provisions – 2013/2014

Loans Debtors Claims Total

R’000 R’000 R’000 R’000

Opening balance 12 627 372 25 13 024

Provisions raised 2 169 1 112 (3) 3 278

Unused amounts reversed - - - -

Amounts used - - -

Settlement of provision without cost to the Department- - - -

Change in provision due to change is estimation inputs- - - -

Closing balance 14 796 1 484 22 16 302

31. NON-ADJUSTING EVENTS AFTER REPORTING DATE

A new MEC was appointed after the general elections that took place on 07 May 2014. The Honourable Mr Sakhumzi Somyo is now the MEC responsible for the Department.

As part of the entities under the same executive authority, the ECDC has the intention to transfer shares held by it at the ELIDZ to the Department. The process for this transfer had begun by year-end, however it is still pending final approval by the executive authority.

32. MOVABLE TANGIBLE CAPITAL ASSETS

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Opening balance

Current Year Adjustments to prior year balances

Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000

HERITAGE ASSETS

Heritage assets - - - - -

MACHINERY AND EQUIPMENT 21 783 3 835 4 764 (1 203) 29 179

Transport assets 856 - 963 - 1 819

Computer equipment 12 574 - 1 846 (1 126) 13 294

Furniture and office equipment 7 535 - 391 (63) 7 863

Other machinery and equipment

818 3 835 1 564 (14) 6 203




Opening balance

Current Year Adjustments to prior year balances

Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000

BIOLOGICAL ASSETS

Biological assets - - - - -

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 21 783 3 835 4 764 (1 203) 29 179

Prior year adjustments were made to machinery and other equipment due to an error discovered in the current financial year. Refer to Note 36 for details.

32.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

CashR’000

Non-cashR’000

Capital Work in Progress current

costs and finance lease payments

R’000

Received current not paid

Paid current year received prior year

R’000TotalR’000

HERITAGE ASSETS

Heritage assets - - - - -

MACHINERY AND EQUIPMENT 14 891 1 386 (11 513) - 4 764

Transport assets 7 409 - (6 446) - 963

Computer equipment 1 846 - - 1 846

Furniture and office equipment 385 6 - 391

Other machinery and equipment

5 251 1 380 (5 067) - 1 564

SPECIALISED MILITARY ASSETS

Specialised military assets - - - - -

BIOLOGICAL ASSETS

Biological assets - - - - -

TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 14 891 1 386 (11 513) - 4 764

Included in the R 14,891m of assets is the finance lease payment of R 11 513m.The non-cash flow amount of R 1 380 relates to the additional cell phone contracts taken in the current year. This amount was calculated using the prime rate of 9% and period of 24 months. The additions relate to the purchase of office furniture and equipment. This was a result of more staff being employed. Also, the filling of all senior vacant posts required more office furniture for managers.




32.2 Disposals

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Sold for cash

Transfer out or destroyed or

scrapped Total disposals Cash Received Actual

R’000 R’000 R’000 R’000

HERITAGE ASSETS

Heritage assets - - - -

MACHINERY AND EQUIPMENT - (1 203) (1 203) -

Transport assets - - - -

Computer equipment - (1 126) (1 126) -

Furniture and office equipment - (63) (63) -

Other machinery and equipment - (14) (14) -


Specialised military assets - - - -

BIOLOGICAL ASSETS


TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS - (1 203) (1 203) -

32.3 Movement for 2012/2013

Opening balance

Current Year Adjustments to prior year

balances Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000

HERITAGE ASSETS


MACHINERY AND EQUIPMENT 20 706 388 1 306 (229) 21 783

Transport assets 856 - - - 856

Computer equipment 12 327 313 322 (75) 12 574

Furniture and office equipment 6 694 527 979 (138) 7 535

Other machinery and equipment 829 (452) 5 (16) 818




32.3 Movement for 2012/2013 (continued)

Opening balance

Current Year Adjustments to prior year

balances Additions Disposals Closing Balance


Specialised military assets - - - - -

BIOLOGICAL ASSETS


TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 20 706 388 1 306 (229) 21 783

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2014

33. MINOR ASSETS

Specialised military assets Intangible assets

Heritage assets

Machinery and

equipmentBiological

assets Total

R’000 R’000 R’000 R’000 R’000 R’000

Opening balance - 2 - 7 590 - 7 592

Current year Adjustments to prior year balances

- -

Additions - - - 528 - 528

Disposals - - - (343) - (343)

TOTAL MINOR ASSETS- 2 - 7 775 7 777

Specialised military assets Intangible assets

Heritage assets

Machinery and

equipmentBiological

assets Total

Number of R1 minor assets - - 375 - 375

Number of minor assets at cost

- 1 - 8 204 - 8 205

TOTAL NUMBER OF MINOR ASSETS - 1 - 8 579 8 580




MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2013

Specialised military assets

Intangible assets Heritage assets

Machinery and

equipment Biological assets Total

R’000 R’000 R’000 R’000 R’000 R’000

Opening balance - 2 7 191 - 7 193

Current year Adjustments to prior year balances

- - -

Additions - - 626 - 626

Disposals - (227) - (227)

TOTAL MINOR ASSETS - 2 7 590 - 7 592

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2013 (continued)

Specialised military assets

Intangible assets Heritage assets

Machinery and

equipment Biological assets Total

Number of R1 minor assets -1

-463

-464

Number of minor assets at cost

- -8 440

-8440

TOTAL NUMBER OF MINOR ASSETS 1 - 8 903 - 8 904

34. INTANGIBLE CAPITAL ASSETS

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Opening balance

Current Year Adjustments to prior

year balances Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000

Software 2 179 - - - 2 179

TOTAL INTANGIBLE CAPITAL ASSETS 2 179 - - - 2 179




MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Opening balance

Current Year Adjustments to prior

year balances Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000

Software 2 179 - - - 2 179

TOTAL INTANGIBLE CAPITAL ASSETS 2 179 - - - 2 179

35. STATEMENT OF CONDITIONAL GRANTS RECEIVED

NAME OF DEPARTMENT

GRANT ALLOCATION SPENT 2012/13

Division of Revenue Act/ Pro-

vincial Grants

Roll Overs

DORA Adjust-ments

Other Ad-justments

Total Avail-

able

Amount received

by Depart-

ment

Amount spent by

Depart-ment

Under / (Over-

spend-ing)

% of avail-

able funds spent

by De-

part-ment

Divi-sion

of Rev-

enue Act

Amount spent by

Depart-ment

R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

DoEA:EPWP Incentive Grant 550 550 550 550 - 100%

550 550 550 550 - - - -

36. CORRECTION OF PRIOR PERIOD ERRORS FOR SECONDARY INFORMATION1. Movable tangible capital assets Note 32

The comparative figures have been restated as a result of cell phone contracts reclassified as finance leases that were omitted from the asset register in the prior year. These were correctly accounted for as capital expenditure.

2012/2013

Opening balance 21 783

New figure 3 835

Net effect 25 618

The cell phone contract is a non-cash flow item as it takes into account the present value of the minimum payments. R 3 835 will only affect the opening amount as it relates to contracts taken before 2012/13




2. Related parties Note 26

The comparatives for related party transaction Note 26 has been restated due to a change in the requirement for disclosure of the MCS. Only transactions outside the normal course of business are disclosed.

2012/2013

Opening balance revenue received 122 525

Closing balance -

Net effect 122 525

Opening balance payments made 471 659

Closing balance 1 705

Net effect 469 954

Opening balance balances 6 579

Closing balance -

Net effect 6 579




ANNEXURE 1A

STATEMENT OF UNCONDITIONAL GRANTS AND TRANSFERS TO MUNICIPALITIES

NAME OF MUNICIPALITY

GRANT ALLOCATION TRANSFER SPENT 2012/13

AmountRoll

OversAdjust-

mentsTotal

Available

Actual Trans-

fer

% of Available

funds Trans-ferred

Amount received

by munici-

pality

Amount spent

by munici-

pality

% of available

funds spent by

munici-pality

Total Avail-

able

R’000 R’000 R’000 R’000 R’000 % R’000 R’000 % R’000

Chris Hani Municipality

- - - - 550 550 181 33% 1 500

Ntabankulu - - - - - 600

Senqu Local Municipality - - 1 523 100% 1 523 100% 1 523 -

-

Port St. Johns Local Municipality

- - 4 400 100% 4 400 100%4 400 731 17%

-

Umzimvubu Local Municipality

- - 2 700 100% 2 700 100%2 700 300 11%

-

Amahlathi Local Municipality

- - 200 100% 200 100%200 -

-

Gariep Local Municipality - - 1 500 100% 1 500 100% 1500 -

Elundini Local Municipality - - 350 100% 350 100% 350 41 12%

-

Intsika Yethu Local Municipality - - 500 100% 500 100% 500 500 100% -

- - 11 173 100% 11 723 11 723 1 735 2 100

H. UNAUDITED ANNEXURE TO THE ANNUAL FINANCIAL STATEMENTS



ANNEXURE 1B

STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS

DEPARTMENT/ AGENCY/ ACCOUNT

TRANSFER ALLOCATION TRANSFER 2012/13

AdjustedAppro-

priation

Roll

Overs

Adjust-ments Total

Available

Actual Transfer

% of Available

funds Transferred

Appropria-ti-on Act

R’000 R’000 R’000 R’000 R’000 % R’000


497 944 - 9 167 507 111 704 018 100% 208 710

East London Industrial Development Zone (via ECDC)

114 907 - - 114 907 100% -


196 387 - - 196 387 196 387 100% 190 426

Eastern Cape Liquor Board 41 131 - - 41 131 41 131 100% 35 131

Eastern Cape Gambling and Betting Board

42 687 - - 42 687 42 687 100% 35 687

Coega Development Corporation (via ECDC)

82 000 - - 82 000 100% -

975 056 - 9 167 984 223 984 223 469 954

ANNEXURE 1C

STATEMENT OF TRANSFERS TO HIGHER EDUCATION INSTITUTIONS

NAME OF HIGHER EDUCATION INSTITUTION

TRANSFER ALLOCATION TRANSFER 2012/2013

AdjustedAppro-

priation Roll

Overs

Adjust-

mentsTotal

AvailableActual

Transfer

Amount

not trans-ferred

% of Available

funds Transferred

Appropri-at-ion

Act

R’000 R’000 R’000 R’000 R’000 R’000 % R’000

Rhodes University 1 964 - - 1 964 1 964 - - 1 695

University of Fort Hare 1 100 - - 1 100 1 100 - -

Nelson Mandela Metropolitan University

8 000 - - 8 000 8 000 - -

11 064 - - 11 064 11 064 - - 1 695



ANNEXURE 1D

STATEMENT OF TRANSFERS/SUBSIDIES TO PUBLIC CORPORATIONS AND PRIVATE ENTERPRISES

NAME OF PUBLIC CORPORATION/PRIVATE ENTERPRISE

TRANSFER ALLOCATION EXPENDITURE 2012/13

AdjustedAppro-

priation Act

Roll Overs

Adjust-ments

Total Available

Actual Transfer

% of Available

funds Trans-ferred

Capital Cur-rent

Appro-priation

Act

R’000 R’000 R’000 R’000 R’000 % R’000 R’000 R’000

Private Enterprises

Transfers

LRED FUNDS 9 514 (9 167) 347 - - - - 31 658

Environ Awards - - - 1 000

Wessa - - - 719

Chemistry Incubator 1 800 - 1 800 1 800 100% - - 1 800

Maloti Drankensburg - - - 515

Hershell Sandstone Mine C.C.

500 - 500 500 100% - - -

Emthonjeni Arts 3 000 - 3 000 3 000 100% - - -

P.S.J Woodwork Co-Operative LTD.

3 000 - 3 000 3 000 100% - - -

Bambanani Garden Agricultural Co.

750 - 750 750 100% - - -

Gz Foundation Trust 3 000 - 3 000 3 000 100% - - -

Malakhiwe Bakery Co-Oprative Ltd.

750 - - 750 750 100% - - -

Ikusasa Green (Pty)Ltd. 3 000 - - 3 000 3 000 100% - - -

Abenzi Woodhouse 3 000 - - 3 000 3 000 100% - - -

Nomzamo Cleaning Services Co-op p

1 762 - - 1 762 1 762 100% - - -

Rasmeni’s Farming Primary Co-op

3 000 - - 3 000 3 000 100% - - -

Zingisa Ward 25 Willdwvale Honey

1 095 - - 1 095 1 095 100% - - -

Amadela-Kufa Agricultural Second

1 000 - - 1 000 1 000 100% - - -

Masiphakame Bakery 500 - - 500 500 100% - - -

Sithi Makukanye Primary Co-op

1 600 - - 1 600 1 600 100% - - -

Ekhephini Community Radio

1 070 - - 1 070 1 070 100% - - -

TOTAL 38 341 (9 167) 29 174 28 827 - 35 692



ANNEXURE 1E

STATEMENT OF TRANSFERS TO NON-PROFIT INSTITUTIONS

NON-PROFIT INSTITUTIONS


AdjustedAppropria-

tion Act

Roll

overs

Adjust-ments

Total

Available

Actual Transfer

% of Available

funds transferred

Appropriation Act

R’000 R’000 R’000 R’000 R’000 % R’000

Transfers

- - - 144

Waste Management - - - -

St. Mathews High School

- - - 15 -

Loyiso Senior Secondary School

- - - 5 -

Dumani Primary School - - - 20 -

Ntabezwe J.S.S - - - 120 -

St. Monica’s Diocesan School

- - - 15 -

St. Christophers Private School

- - - 20 -

Kabega Primary School - - - 5 -

Jityaza Combined Primary School

- - - 5 -

Mbodleni Junior Secondary School

- - - 5 --

Marilliers Learning Academy

- - - 20 -

Thoboshana Farm School

- - - 70 -

Focused High School - - - 20 -

Umthawelanga S.S.S - - - 15 -

St. John’s College - - - 15 -

Hlabathi J.S.S - - - 15 -

Nzimankulu S.S.S - - - 15 -

Mzamba Junior Secondar School

- - - 5 -

Ndyebo Senior Secondary School

- - - 15 -

Ntabenkonyana High School

- - - 5 -

St. Christophers Private School

- - - 98 -



Transfers (continued)

NON-PROFIT INSTITUTIONS


Adjusted Ap-propriation

Act

Roll overs

Adjust-ments

Total Available

Actual Transfer

% of Available

funds transferred

Appropriati-on Act

R’000 R’000 R’000 R’000 R’000 % R’000

Focused High School - - - - 97 - -

Umkhankomo S.S.S - - - - 5 - -

Ebenezer Nyathi Secondary School

- - - - 20 - -

Camhams J.S.S - - - - 5 - -

Empumalanga - - - - 15 - -

Mabandla J.S.S - - - - 5 - -

Nozipho J.P School - - - - 5 - -

Jongimishini S.P.S - - - - 15 - -

Nolufefe S.P School - - - - 95 - -

Zandise J.S.S - - - - 15 - -

Arthur Mfebe Agricultural School

- - - - 20 - -

Rubusana Snr. Secondary School

- - - - 5 - -

Unathi Mkeva Public Primary School

- - - - 45 - -

Theodor Herzl High School

- - - - 50 - -

Ebenezer Nyathi Secondary School

- - - - 25 - -

Theodor Herzl High School

- - - - 20 - -

Luyteville Primary School - - - - 15 - -

Cabane J.S.S - - - - 15 - -

Sterkspruit Community S.P.S

- - - - 5 - -

Mpemba J.S.S - - - - 20 - -

Total - - - - 1 000 - 144



ANNEXURE 1F

STATEMENT OF TRANSFERS TO HOUSEHOLDS

HOUSEHOLDS


AdjustedAppropriation

ActRoll

OversAdjust-

mentsTotal

Available

Actual Transfer

% of Available

funds Transferred

Appropriati-on Act

R’000 R’000 R’000 R’000 R’000 % R’000

Transfers

Injury on duty - - - - 87 1

Leave gratuity - - - - 1 091 1 058

Total - - - - 1 178 1 059

ANNEXURE 1G

STATEMENT OF GIFTS DONATIONS AND SPONSORSHIPS RECEIVED

NAME OF ORGANISATION NATURE OF GIFT DONATION OR SPONSORSHIP2013/14 2012/13

R’000 R’000

Received in cash

X4 Adventure trip to Mr Ayanda Dlomo - 3

Mr. B. GxilisheMr. B. Gxilishe

ExcursionBottle of Wine 11 -

Mr. D. KentaneMr. M. Bozo

Samsumg Galaxy Tab 3 178cmSamsumg Galaxy Tab 3 178cm

44

-

Mr. T. Manyonga Samsumg Galaxy Tab 3 178cm 4 -

Mr. S. Madolo Samsumg Galaxy Tab 3 178cm 4 -

Mr. B. Qaba Samsumg Galaxy Tab 3 178cm 4 -

Ms N. Booi Samsumg Galaxy Tab 3 178cm 4 -

Ms L. Nyoka Samsumg Galaxy Tab 3 178cm 4 -

Subtotal 39 3

* The Bottle of wine was priced at R441.00

Received in kind

Lenovo Laptop received from ESCO in respect of Kayakazi Ndandani for the outstanding performance during Persal training.

- 5

Subtotal- 5

TOTAL39 8



ANNEXURE 1H

STATEMENT OF GIFTS DONATIONS AND SPONSORSHIPS MADE AND REMMISSIONS REFUNDS AND PAYMENTS MADE AS AN ACT OF GRACE

NATURE OF GIFT DONATION OR SPONSORSHIP2013/14 2012/13

R’000 R’000

Paid in cash

King Edward High School - 45

Bonxa Junior Secondary - 15

Madlangeni Senior Secondary School - 65

Nzimakhulu High School - 65

Nkulisa junior Secondary School - 65

Umthawelanga High School - 120

Focussed High School - 15

Teko Spring Primary - 20

St. Mattews High School - 20

Nzululwazi High School - 65

Westering High School - 20

Kabega Primary School - 15

Morningside High School - 15

Vukanibantu Primary School - 65

Jobole High School - 120

Loyiso High School - 65

Tlokweng High School - 65

Stirling - 15

Egqili High School - 65

Nozipho Junior Secondary School - 20

Ngqwaru Junior Secondary School - 15

Maria Louw High School - 20

Nkwaca Senior Secondary School - 15

Nolufefe Primary School - 45

Unathi Mkefa Junior Secondary School - 65

Mabandla Junior Secondary School - 30

Dumani Primary School - 70

Zandisa Junior Secondary - 65

Ntabezwa Junior Secondary School - 15

Mamjoli Sigcawu Primary School - 65

Hlabathi Primary School - 110



NATURE OF GIFT DONATION OR SPONSORSHIP2013/14 2012/13

R’000 R’000

Hillbrow High School - 65

Holy Cross High School - 95

Marillier Learning Academy - 15

Maria Louw High School - 50

Greenest Municipality Competition - 200

Senqu Local Municipal - 300

Inkwanca Local Municipality - 500

TOTAL 1 998

The current year gifts, donations and sponsorships made, remissions, refunds and payments made as an act of grace were reclassi-fied to non-profit institute items and are listed under annexure 1G

ANNEXURE 2A

STATEMENT OF INVESTMENTS IN AND AMOUNTS OWING BY/TO NATIONAL/PROVINCIAL PUBLIC ENTITIES

Name of Public Entity

State Entity’s PFMA Sched-ule type (2013/2014)

% Held 13/14

Number of shares held

Cost of invest-ment

Net Asset value of investment

Profit/(Loss) for the year

Loss-es guar-an-teed R’000 R’000 R’000

% Held

12/132013/

142012/

132013/

142012/

132013/

142012/

132013/

142012/

13Yes/No

National/Provincial Public Entity

Eastern Cape Develop-ment Corpora-tion

3D 100 100 427 590 427 590 427 590 427 590 1 272 856

1 081 233 181 406

101 248 No

Total 100 100 427 590 427 590 427 590 427 590 1 272 856 1 081 233 181 406 101 248



ANNEXURE 3A

STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2014 – LOCAL

Guarantor institutionABSA

Guaran-tee in respect of

Original guaran-teed capital amount

Opening balance 1 April 2013

Guarantees draw downsduring the year

Guarantees repay-ments/ cancelled/ reduced/ released during the year

Revalu-ations

Closing balance31 March 2014

Guar-anteed interest for year ended 31 March 2014

Realised losses not re-coverable i.e. claims paid out

R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000

Housing 174 91 83

TOTAL 174 91 83

ANNEXURE 3B

STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2014

Nature of Liability

Liabilities incurred during

the yearR’000

Liabilities paid/cancelled/

reduced during the year

R’000

Liabilities recoverable

(Provide details hereunder)

R’000

Opening Balance

1 April 2013R’000

Closing Balance 31 March 2014

R’000

Claims against the Department

Pending court cases 8 505 10 620 8 355 10 770

Total 8 505 10 620 8 355 10 770



ANNEXURE 4

CLAIMES RECOVERABLE

Government Entity

Confirmed balance outstanding

Unconfirmed balance

outstandingTotal

31/03/2014

31/03/2013

31/03/2014

31/03/2013

31/03/2014

31/03/2013

R’000 R’000 R’000 R’000 R’000 R’000DepartmentDepartment of Health EC 2 2

Department of Education EC 1 1 1 1

Environmental Affairs WC 2 2 2 2

DEAT-National 5 5 5 5

Office of the Premier 15 15 15 15

DSRAC 4

Total 23 25 4 23 25

ANNEXURE 5

INTER-GOVERNMENT PAYABLES

GOVERNMENT ENTITY

Confirmed balance outstanding

Unconfirmed balance

outstandingTOTAL

31/03/2014

31/03/2013

31/03/2014

31/03/2013

31/03/2014

31/03/2013

R’000 R’000 R’000 R’000 R’000 R’000

DEPARTMENTS

Current

EC Office of the Premier - 473 - - - 473

Total 473 - 473



ANNEXURE 6

INVENTORY

Inventory Note Quantity 2013/14 Quantity 2012/13

R’000 R’000

Opening balance 571 674

Add/(Less): Adjustments to prior year balance(571)

Add: Additions/Purchases – Cash 407 561 2 612

Add: Additions - Non-cash

(Less): Disposals

(Less): Issues (407) (561) (2 715)

Add/(Less): Adjustments

Closing balance - - - 571



NOTES

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

PHYSICAL ADDRESS:Hockley Hill, Hockley Close

King Williams TownPrivate Bag X0054

BhishoSouth Africa

5650

POSTAL ADDRESS:Private Bag x0054

King William’s TownSouth Africa

5605

TELEPHONE NUMBER/S: (+27) 043 605 7022FAX NUMBER: (+27) 043 605 7303EMAIL: [email protected]

ISBN 978-0-621-43095-0

Department of Economic Development, Environmental Affairs ... · 2 Department of Economic...

Documents

Transcript of Department of Economic Development, Environmental Affairs ... · 2 Department of Economic...