REVISED EGov Annual Report Inside Pages (Part A) copy · 2019-03-20 · ANNUAL REPORT FINANCIAL...

ANNUAL REPORTFINANCIAL YEAR

2017/2018

Together, Moving Gauteng City Region Forward

PART A: GENERAL INFORMATION

Department contact details.....................................................

List of Abbreviations/Acronyms...............................................

1. Foreword by the MEC.........................................................

2. Report of the Accounting Officer.........................................

3. Accounting Officer’s statement of responsibility and confirmation of the accuracy of the annual report...............

4. Strategic Overview..............................................................

4.1. Vision..........................................................................

4.2. Mission.......................................................................

4.3. Values.........................................................................

5. Legislative and other mandates...........................................

6. Organisational structure of e-Government..........................

PART B: PERFORMANCE INFORMATION

1. Overview of Departmental Performance..............................

1.1. Service Delivery Environment.......................................

1.2. Service Delivery Improvement Plan...............................

1.3. Organisational Environment........................................

1.4. Key policy developments and legislative changes.........

2. Strategic outcome oriented goals........................................

3. Performance information by programme.............................

3.1. Programme 1: Administration.....................................

3.2. Programme 2: Information Communication

Technology Shared Services.........................................

3.2.1. Sub-programme 2.1 Governance Structures.............

3.2.2. Sub-programme 2.2 Enabling Infrastructure.............

3.2.3. Sub-programme 2.3 Enabling Platform.....................

3.2.4. Sub-programme 2.4 Promotion of the

usage of e-Government Services..............................

3.2.5. Sub-programme 2.5 ICT Industry Stimulation...........

3.3. Programme 3: Human Resource Services.....................

CONTENTS3

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PART C: GOVERNANCE

1. Introduction........................................................................

2. Risk Management...............................................................

3. Embedding Risk Management............................................

4. Fraud and Corruption.........................................................

5. Minimising Conflict of Interest ...........................................

6. Code of Conduct................................................................

7. Health Safety and Environmental Issues..............................

8. Portfolio Committees..........................................................

9. Prior Modifications to Audit Reports...................................

10. Audit committee Report...................................................

PART D: HUMAN RESOURCE.........................................OVERSIGHT REPORT

PART E: FINANCIAL INFORMATION

1. Auditor General’s Report....................................................

2. Annual Financial Statements...............................................

PART F: OUTLOOK FOR THE COMING YEAR

1. Outlook.......................................................................

31

33

35

37


Department contact details.....................................................

List of Abbreviations/Acronyms...............................................

1. Foreword by the MEC.........................................................

2. Report of the Accounting Officer.........................................

3. Accounting Officer’s statement of responsibility and confirmation of the accuracy of the annual report...............

4. Strategic Overview..............................................................

4.1. Vision..........................................................................

4.2. Mission.......................................................................

4.3. Values.........................................................................

5. Legislative and other mandates...........................................

6. Organisational structure of e-Government..........................


1. Overview of Departmental Performance..............................

1.1. Service Delivery Environment.......................................

1.2. Service Delivery Improvement Plan...............................

1.3. Organisational Environment........................................

1.4. Key policy developments and legislative changes.........

2. Strategic outcome oriented goals........................................

3. Performance information by programme.............................

3.1. Programme 1: Administration.....................................

3.2. Programme 2: Information Communication

Technology Shared Services.........................................

3.2.1. Sub-programme 2.1 Governance Structures.............

3.2.2. Sub-programme 2.2 Enabling Infrastructure.............

3.2.3. Sub-programme 2.3 Enabling Platform.....................

3.2.4. Sub-programme 2.4 Promotion of the

usage of e-Government Services..............................

3.2.5. Sub-programme 2.5 ICT Industry Stimulation...........

3.3. Programme 3: Human Resource Services.....................

PART C: GOVERNANCE

1. Introduction........................................................................

2. Risk Management...............................................................

3. Embedding Risk Management............................................

4. Fraud and Corruption.........................................................

5. Minimising Conflict of Interest ...........................................

6. Code of Conduct................................................................

7. Health Safety and Environmental Issues..............................

8. Portfolio Committees..........................................................

9. Prior Modifications to Audit Reports...................................

10. Audit committee Report...................................................

PART D: HUMAN RESOURCE.........................................OVERSIGHT REPORT

PART E: FINANCIAL INFORMATION

1. Auditor General’s Report....................................................

2. Annual Financial Statements...............................................

PART F: OUTLOOK FOR THE COMING YEAR

1. Outlook.......................................................................

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77

81

140

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Gauteng Provincial Government | e-Government | Annual Report 2017/2018 2

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DEPARTMENT CONTACT DETAILS

PHYSICAL ADDRESS:

Imbumba House

75 Fox Street

Johannesburg

South Africa

2001

POSTAL ADDRESS:

Private Bag X112

Marshalltown

Johannesburg

2107

TELEPHONE NUMBER:

011 689 6000

FAX NUMBER:

011 355 2112

EMAIL ADDRESS:

[email protected]

WEBSITE ADDRESS:

www.gauteng.gov.za

Gauteng Provincial Government | e-Government | Annual Report 2017/2018

LIST OF ABBREVIATIONS/ACRONYMSAPPAPNBASBEECFOCRMCSDDAVDPSAEHWPEMSERMESSFMDCe-GOVGBNGCRGDEGDHSGEYODIGIFAGISGPGGPTGRVGTAG2BG2CG2GHODHRSICTIMPACCIYMKPALANM&EMECMPATMPSAMTBPSMTEFMTSF NDPOHSOOPPFMAPMDSPPPPPPFARFQRMCSAPSITASLASMMESMSSHERQTMR VoIPWAN

Annual Performance PlansAccess Point NameBasic Accounting SystemBlack Economic EmpowermentChief Financial OfficerCustomer Relationship ManagementCentral Supplier DatabaseDesign And Validation Department Of Public Service And AdministrationEmployee Health And Wellness ProgrammeEmergency Medical Services Enterprise Risk ManagementEmployee Self ServiceFully Managed Data CentreGauteng Department Of E-governmentGauteng Broadband NetworkGauteng City RegionGauteng Department Of Education Gauteng Department Of Human Settlements Gender Youth And People With DisabilitiesGauteng Infrastructure Financing AgencyGeographic Information SystemGauteng Provincial Government Gauteng Provincial Treasury Goods Received VoucherGauteng Tourism AuthorityGovernment To BusinessGovernment To CitizenGovernment To Government Head Of DepartmentHuman Resources Services Information Communication TechnologyInvestigation And Monitoring Of Police And Citizen ComplaintsIn-year MonitoringKey Performance Areas Local Area Network Monitoring And EvaluationMember Of Executive Council Management Performance Assessment ToolMinister Of Public Service And Administration Medium Term Budget Policy StatementMedium Term Expenditure FrameworkMedium Term Strategic FrameworkNational Development PlanOccupational Health And SafetyOffice Of The Premier Public Finance Management ActPerformance Management And Development SystemPrivate Public Partnerships Preferential Procurement Policy Framework ActRequest For QuotationRisk Management CommitteeSystem Application ProductState Information Technology AgencyService Level AgreementSmall Micro And Medium EnterprisesSenior Management ServicesSafety, Health, Environment, Risk And QualityTransformation, Modernisation And Re-industrialisationVoice Over Internet ProtocolWide Area Network

14Gauteng Provincial Government | e-Government | Annual Report 2017/2018


Department contact details.

List of Abbreviations/Acronyms

the conference resolved on the following key actions: • To establish an innovation forum;• To link our investment in research and development to changes in production and consumption in Gauteng’s key economic sectors;• To continually look for ways to promote economic inclusion of start-ups, particularly youth start-ups and township entrepreneurs in the process of building the digital economy; and• To work with the entire education system, from Primary to Tertiary level, to ensure we get the right skills to support new career paths, economic productivity and entrepreneurship.

The Department continued to improve its administrative and management practices, and compliance with policy and legislative requirements. This is evidenced by achieving 91.3%, best in the province on the Management Performance Assessment Tool (MPAT) standards. We also received a clean audit opinion.

At the prestigious Premier’s Service Excellence Awards, the DAV centre obtained a Gold award and the Gauteng Security Operations Centre (GSOC) obtained a Bronze award both awards were in the” Public Private Partnership” Award sub category which recognised successful Public-Private Partnership service delivery projects. The Department having previously won the Gold Award for implementation of the Gauteng Broadband Network.

I would like to thank our Head of Department, Mr Boy Ngobeni, his management team and all staff members of the Department, without whom, we would not have realised such progress.

FOREWORD BY THE MEC

A key focus of the Transformation, Modernisation and Re-industrialisation (TMR) programme of the province is ICT-enabled public service delivery that can improve efficiency and access to public services. To this effect the Department has increased broadband capability through the rollout of the Gauteng Broadband Network. The Department has connected 1181 sites at 100 mbps across the province. The efficiencies that resulted from the rollout of the network include, reduced telephony costs in the province and 98% availability of the broadband network at all connected sites. The Department conducted an ICT As-Is Evaluation of functions and capabilities aimed at determining the status quo of the current ICT in the province. The evaluation report identified several duplications, inefficiencies and weaknesses and provided recommendations to improve efficiencies and realise cost savings. In 2017/18 further progress was made on the implementation of the Common Platform. This platform will allow the people of Gauteng to access a wide range of government services through a single window at times most convenient to them. Currently, there are nine services on the platform and the Department aims to increase the range of services that citizens can access to thirty-two by 2019.

The Department has also implemented a Fully Managed Data Centre (FMDC) for hosting of all departmental data and applications. The FMDC ensures business continuity in the face of a crisis. To date, nine (9) departments have migrated into the GPG private cloud.

The Design and Validation (DAV) centre runs programmes that facilitate digital innovation and entrepreneurship. A total of 10 township developers have been appointed to develop provincial applications and e-services. Six concepts have been tested in this financial year, bringing the total concepts tested to twelve.

In the year under review, Gauteng hosted the Technology Innovation Conference, 2018 under the theme: ‘Building Innovative Technology Ecosystems for a Modernised City Region,’

MEC Barbara CreecyGauteng Department of e-Government

MEC Barbara CreecyGauteng Department of e-Government

6

The major challenges therefore faced by the Department during the year under review have been the delays in procurement process of Phase 2 of the GBN project as well as the migration of departments and entities onto the FMDC.

To mitigate these challenges, the Department plans to ensure that the Gauteng Broadband Network sites will be connected in the new financial year, upon conclusion of the procurement process. The departments not connected to the FMDC now have the necessary infrastructure and mechanisms in place to migrate applications and data to the FMDC in the new financial year.


Overview of the Operations of the Department

The Gauteng Department of e-Government has continued its journey to modernise the public service and the economy through Information and Communication Technology (ICT) in line with its mandate and the overall goal of the National Development Plan to create universal access to public services by 2030 through enhancement of efficiency in the delivery of public services.

To this end, many key milestones were achieved in the last financial year: The Department has made significant progress towards achieving its mandate to rollout the Gauteng Broadband Network (GBN) infrastructure and closing the digital divide. During the 2017/18 financial year, the Department rolled out GBN infrastructure to 17 G2C sites, 1 G2B site, 332 G2G sites. To date a total of 1181 sites have been connected to the Gauteng Broadband network. As part of GBN rollout the Department has also embarked on the rollout of the Voice Over Internet Protocol (VOIP) programme. At the end of 2017/18, VOIP was activated in 150 GBN sites resulting in telephony cost savings.

During the year under review the Department supported the township economy by appointing 10 township Application Developers to develop 10 e-service applications. In addition,6 ICT concepts from township entrepreneurs were tested at the DAV centre. The Department furthermore facilitated development of mobile applications to improve efficiency of the provincial government to deliver services.

In the year under review a total of 8 policies and frameworks were developed and approved to establish and strengthen ICT governance in the province. The Department also conducted 1 provincial situational analysis of ICT functions. The objective of the analysis was to

engender a better understanding of the ICT environment in the province. In addition, ICT functions and capabilities were reviewed to establish the status quo of the broadband connectivity and methods of connectivity in the province.

40 Digital ambassadors were appointed and deployed to promote awareness and usage of ICT services offered by the Department. In addition, 8 e-services were promoted through the Premier’s Ntirhisano outreach programme and the Qondis’shishiniLakho campaign. A total of 733,111 users utilised various e-services more than the target of 100,000.

The implementation of the Action Lab strategy resulted in the participation of 81,373 youths in the ICT space. The implementation of the strategy contributed towards employment of the youth, growth of digital entrepreneurship and building of the ICT industry in the townships.

The Department concluded 8 partnership agreements in the year under review and continued to engage partners and stakeholders in the sharing of knowledge, experiences and good practices with a view to enhance efficiency in the delivery of e-services in the province.

The Department processed 100% of the Department’s tenders through the open tender system to improve transparency and to gain public confidence in the Department’s procurement processes. The Department spent 32,54% of its procurement spend on RFQs below R500 000 from township suppliers. Furthermore, the Department paid 98% of its suppliers within 30 days of receiving their invoices.

The Department continued to improve its management practices. The Department achieved 91.3% on the Management Performance Assessment Tool (MPAT) standards

At the prestigious Premier Service Excellence Awards, the DAV centre obtained a Gold award and the Gauteng Security Operations Centre (GSOC) obtained a Bronze award. Both awards were in the” Public Private Partnership” Award sub category which recognised successful Public-Private partnership service delivery projects.

The Department has been mandated to provide broadband connectivity to 3000 Gauteng provincial government sites as well as Thusong Centres, economic zones, and eKasi Labs by the end of the 2019 term. The mandatory requirement to procure ICT products and services through SITA, as per the SITA Act and associated Practice Notes, has extended the time it takes for procurement to be concluded resulting in the Department not meeting its GBN connectivity and migration to the provincial Fully Managed Data Centre (FMDC) APP targets as well as resulting in under-expenditure.

Boy NgobeniHead of Department





147 Gauteng Provincial Government | e-Government | Annual Report 2017/2018

REPORT OF THE ACCOUNTING OFFICER

REPORT OF THE ACCOUNTING OFFICER



Departmental receipts

2017/2018 2016/2017

EstimateActual

Amount

Collected

(Over)/Under

CollectionEstimate

Actual

Amount

Collected

(Over)/Under

Collection

R’000 R’000 R’000 R’000 R’000 R’000

Sale of goods and services other than capital assets

461 529 (68) 538 507 31

Interest, dividends and rent on land

12 9 3 11 10 1

Sale of capital assets 5 - 5 - 10 (10)

Financial transactions in assets and liabilities

350 582 (232) 39 29 10

TOTAL 828 1 120 292 588 556 32

2.2. Departmental receipts

The GYM fees and parking generated 50% of revenue and staff debt generated the remaining 50%.

2. REPORT OF THE ACCOUNTING OFFICER




14

2016/2017

2.3. Overview of the financial results of the Department:

Final (Over)/Under

Expenditure

%

Budget

SpentFinal

Appropriation Expenditure Expenditure

1. Administration

228 122 221 327 6 795 183 898 167 094 16 804 91%

2. Information Communication

Technology (ICT) Shared Services

1 126 860 1 008 670 118 190 968 733 961 143 7 590 99%

3. Human Resource

Services 106 077 103 614 2 463 110 555 109 141 1 414 99%

Total 1 461 059 1 333 611 127 448 1 263 186 1 237 378 25 808 98%

Expenditure

R’000R’000

AppropriationFinal Actual

(Over)/Under

R’000

% Budget

Spent

97

89.5

97.7

91.3

Actual

2016/20172017/2018

R’000 R’000 R’000


2.4. Programme Expenditure

Programme Name

2017/2018 2016/2017

(Over)/UnderExpenditure


%

BudgetSpent

FinalAppropriation

ActualExpenditure

R’000 R’000 R’000 R’000 R’000 R’000

1. Administration 228 122 221 327 6 795 97 183 898 167 094 16 804

Information Communication

Technology

(ICT) Shared

Services

1 126 860 1 008 670 118 190 89.5 968 733 961 143 7 590

Human

Resource

Services

106 077 103 614 2 463 97.7 110 555 109 141 1 414

Total 1 461 059 1 333 611 127 448 91.3 1 263 186 1 237 378 25 808 98%


91%

99%

99%

FinalAppropriation

ActualExpenditure

% Budget

Spent

2.

3.


Reasons for under spending1. Compensation of employees - Underspending was as a result of funded vacant posts2. Goods and services - Underspending was mainly due to delays in the Gauteng Broadband Network phase 2 procurement process by SITA. 3. E-services application mobility and connectivity LAN: The supply chain management process was initiated during 2017/18 financial year. The process was not concluded by the end of the financial year.

17

2.5. Virements and Roll-over

Programme Name

Adjustment

Appropriation

Actual

Spending

Virements Final Appropriation

R’000 R’000 R’000 R’000

239 672 1. Administration 221 327 (11 550) 228 122

2. Information

Communication

Technology (ICT) Shared

Services

1 113 192

1 008 670

13 668

1 126 860

3. Human Resource Services 108 195 103 614 (2 118) 106 077

TOTAL 1 461 059 1 333 611 0 1 461 059

An amount of R13.6 million was shifted from the following programmes to cater for payment of Microsoft Licenses• R11.5 million was shifted from programme 1 and • R2.1 million was shifted from programme 3

Roll OverThe Department has applied for roll-over of funds to cater for the following projects. The projects below were initiated during 2017/18 financial year and were not concluded by the end of the financial year.

2.6. Reasons for unauthorised, fruitless and wasteful expenditure The Department did not incur any unauthorised, fruitless and wasteful expenditure in 2017/18 financial year.

2.7. Future plans of the DepartmentThe ICT landscape is constantly and rapidly changing. The Department needs to remain relevant and continue to make an impact regarding its mandate of modernising the public service. In this regard, the Department will implement the following key priorities:

• Strengthening the role of the Department and enhancing its value • Enhancing and promoting a conducive ICT regulatory environment • Providing affordable, universal and high-quality broadband • Promoting a culture of cybersecurity and effective cyber governance • Promoting the development of ICT applications and e-services for socio-economic development

The Department will develop a provincial ICT Skills Development strategy and will accordingly, the Department is confident that approval of the proposed organisational structure will be granted by the DPSA.

2.8. Public Private Partnerships The Department did not participate in any PPP activities during the period under review.

2.9. Discontinued activities / activities to be discontinued Not applicable.

2.10. New or proposed departmental activities The Department continues to ensure alignment of its strategic and annual performance plans to the mandate.

2.11. Supply chain management No proposals for unsolicited bids were implemented during the year under review.

2.12. Gifts and Donations received in kind from non-related parties No gifts and donations were received from non-related parties in 2017/18 financial year.

2.13. Exemptions and deviations received from the National Treasury There were no exemptions or deviations during the year under review.

2.14. Events after the reporting date There were no events after the reporting date.

2.15. Acknowledgement/s or Appreciation I would like to convey my gratitude to MEC Creecy for her guidance, leadership and support throughout the year. My

heartfelt thanks also go to the management team of the Gauteng Department of e-Government for their unqualified support during this period. My appreciation also goes out to the staff members of the Department who, through sheer dedication, have demonstrated their commitment to excellence in the public service.

2.16. Conclusion The Annual Financial Statements as set out on page 81 to 137 were approved by the Accounting Officer

____________Mr Boy NgobeniAccounting OfficerDepartment of e-GovernmentDate:


111

PROJECT Roll-over Amount

R’000

ICT ROLLOVER PROJECTS

1. Server infrastructure for the Department of e-Government 5 750

2. FMDC services for GPT via SITA 2 726

3. Renewal of Citrix terminal services software assurance and Premier support maintenance

6 664

4. E-Services Projects 1 065

5. GBN PHASE 2 100 000

TOTAL 116 205


The above projects were initiated during 2017/18 financial year and were not concluded by the end of the financial year.




























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1

Statement of Responsibility for Performance Information

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

All information and amounts disclosed throughout the annual report are consistent.

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

The annual report has been prepared in accordance with the guidelines on the annual report 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 for the judgements made in this Annual Report.

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

The external auditors are engaged to express an independent opinion on the annual financial statements.

In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the department for the financial year ended 31 March 2018.

Yours faithfully

_____________Mr. Boy NgobeniHOD: Gauteng Department of e-GovernmentDate

3. ACCOUNTING OFFICER’S STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF THE ACCURACY OF THE ANNUAL REPORT


4.1. Vision “A Connected Gauteng City Region that leverages technology to provide quality services to citizens”

4.2. Mission To realise the intent of a connected government through:

• Provision of relevant technologies, standards and governance;• Creation of an environment of collaboration between key stakeholders;• Facilitation of the evolution of the GCR service delivery.

4.3. Values• Excellence: To incrementally, systematically and consistently enhance frontline service delivery;• Growth: To constantly innovate and seek new opportunities;• Openness: To be customer centric and thrive to improve high levels of service to the public; and• Value for Money: To provide services at costs affordable to the citizens of Gauteng.

4. STRATEGIC OVERVIEW

5. LEGISLATIVE AND OTHER MANDATES

The Gauteng Department of e-Government derives its mandate from the following national legislation:

National LegislationThe Constitution of the Republic of South Africa (Act 108 of 1996)The mandate of and environment within which the Department operates is defined within Sections 125 and Sections 195 of the Constitution.

Public Service RegulationsThe Public Service Act and Chapter 6 of the PSR related to Information Management and Electronic Government regulates the acquisition, management and use of information and communication technology resources, and enhances direct or indirect service delivery to the public; improves the productivity of the department and ensures cost-efficiency for the department.

In addition, the PSR sets information security standards that promotes information security vigilance, incident reporting, corrective measures in case of non-compliance as well as minimum interoperability standards for interconnectivity, data integration and information access.

The Department utilised the above provisions in the regulatory framework for information and cybersecurity prevention, the rollout of GBN as well as the acquisition of ICT related infrastructure. The framework aims to institutionalise Corporate Governance of ICT as an integral part of corporate governance within departments.

Electronic Communications and Transactions Act, 2002 (Act No. 25 of 2002)To provide for the facilitation and regulation of electronic communications and transactions; the development of a national e-strategy for the Republic; to promote universal access to electronic communications and transactions and the use of electronic transactions by Small, Medium and Micro-sized Enterprises (SMMEs); to provide for human resource development in electronic transactions; to prevent abuse of information systems; to encourage the use of e-Government services; and to provide for matters connected therewith

Electronic Communications Act, 2005To promote convergence in the broadcasting, broadcasting signal distribution and telecommunications sectors and to provide the legal framework for convergence of these sectors; to make new provision for the regulation of electronic communications services, electronic communications network services and broadcasting services; to provide for the granting of new licences and new social obligations; to provide for the control of the radio frequency spectrum; to provide for the continued existence of the Universal Service Agency and the Universal Service Fund; and to provide for matters incidental thereto.

National Integrated ICT Policy White Paper of 2016This White Paper outlines the overarching policy framework for the transformation of South Africa into an inclusive and innovative digital and knowledge society. It reinforces and extends existing strategies such as South Africa Connect, the national broadband policy, the National Cybersecurity Policy Framework, 2012 and the National Information Society and Development Plan.

Prevention and Combating of Corrupt Activities Act, 2004The Prevention and Combating of Corrupt Activities Act makes corruption a crime. It covers anyone working for government (such as Ministers, department staff, and the police) and people outside of government (like someone working for a business).

SA Connect (Policy and Plan)This national broadband policy and the associated strategy and plan is called South Africa Connect. The purpose of this policy is to provide a vision and long--term strategy that can begin to be implemented immediately, to catalyse broadband connectivity in South Africa.

Provincial Legislation

Gauteng Growth and Development StrategyThe Gauteng Growth and Development Strategy directed the Gauteng Department of e-Government to work towards “An inclusive and sustainable Gauteng City-Region that promotes a developmental and equitable society”. It is envisaged that the Gauteng economy will need to shift, as rapidly as possible, to an endogenous economic growth trajectory based primarily on innovation green growth and inclusivity, an inclusive economy depends on the accessibility, connectivity and interaction made possible by infrastructure investments that are strategic, including the rollout of Broadband and the development of e-Services.

Also, the Gauteng Region Economic Development Plan 2015-2020 seeks to unlock the potential of ICT industry to promote SMME development and township revitalisation. The Department contributes to the GDP Strategy by extending ICT connectivity to all provincial government sites.

Governance of ICT Policy FrameworkMaps out how governance of ICT within government entities is to be applied, structured and implemented. Provincially, the Department aligned to the national frameworks through the development and approval of the key frameworks that enables the province to comply with the legislative prescripts: GCR ICT Norms and Standards The implementation of GCR ICT Norms and Standards addresses the use of disparate ICT systems, processes and solutions within the GCR. Through the implementation of the Norms and Standards the Department of e-Government is enabled to facilitate the standardization of ICT projects, initiatives and solutions in the GCR. This is further articulated in the MSP Framework, that enables the GCR to leverage economies of scale to reduce duplication of business processes, systems and resources

GCR Information Communications Technology (ICT) Continuity Management Framework The ICT Continuity Management Framework enables GCR entities to align their ICT Continuity Management arrangements to be more resilient to potential disruptions. The result of implementing the GCR ICT Continuity Management Framework is that all GCR entities have a consistent mature ICT continuity plan which, leads to the full recovery of services during and after a service disruption or disaster.

Good governance legislative responsibilities The Department is bound by the Public Finance Management Act, (Act 1 of 1999), as amended, to ensure that all revenue, expenditure, assets and liabilities are managed efficiently and effectively. As part of good governance, financial management responsibilities have been entrusted to accounting officers within the Department and thus obliged to comply with the Provincial Treasury Regulations in preparation of annual budgets, management of financial systems, procedures to manage risks and internal controls.

The Skills Development Act, 1998 (Act No. 97 of 1998), as amended, allows the Department to provide an institutional framework to devise and implement national, sectoral and workplace strategies to develop and improve the skills of its employees. These strategies must be integrated into the National Qualifications Framework contemplated in the South African Qualifications Authority Act, 1995. In this regard, the Department formulated a Skills Development Plan and continuously embarks on upgrading employee skills.

The Promotion of Access to Information Act, 2000 (Act No. 2 of 2000) compels the Department to provide access to information that it possesses, to anyone who requires such information to exercise or protect any of her or his rights. The Act

is in line with the provision of Section 32(1)(a) of the Constitution which states that everyone has the right of access to any information held by the State, and Section 32(1)(b) which provides for the horizontal application of the right of access to information held by another person to everyone, when such information is required for the exercise or protection of any rights. The Department has appointed a Deputy Information Officers to address queries related to requests for information. This is to ensure transparency and accountability is promoted and respected by the Department.

The Batho Pele White Paper, 1997 is based on eight transformation principles. The Department recognized that transforming its service delivery is important in guaranteeing that the basic needs of citizens in Gauteng are met, and, as such, set out to be more effective in improving its service delivery programmes which are aligned to the principle of redirecting resources to groups that were previously under-resourced; defining service standards with defined outputs, targets and performance indicators; human resource and organisational capacity development to support service delivery needs; seeking potential partnerships with the private sector, non-governmental organisations and community-based organisations; and the development of customer care services that is sensitive to issues of race, gender and disability.

The Department recognises that everyone has the right to administrative action that is lawful, reasonable and procedurally fair, as is provided for in the Promotion of Administrative Justice Act, 2000 (Act No. 3 of 2000). The Department strives to ensure compliance with the legislation.

Prevention and Combating of Corrupt Activities Act, 2004The National Development Plan 2030 (NDP), boldly states that the vision for South Africa in 2030 is a country that has ‘zero tolerance for corruption. The plan states that key to fighting corruption is building a resilient anti-corruption system that ensures that public servants are accountable and responsible, and that the public service as a whole is transparent and responsive.

The Department recognises that everyone has the right to administrative action that is lawful, reasonable and procedurally fair, as is provided for in the Promotion of Administrative Justice Act, 2000 (Act No. 3 of 2000). The Department strives to ensure compliance with the legislation

14Gauteng Provincial Government | e-Government | Annual Report 2017/2018Gauteng Provincial Government | e-Government | Annual Report 2017/2018


















5. LEGISLATIVE AND OTHER MANDATES
























17






6. ORGANISATIONAL STRUCTURE OF THE E-GOVERNMENT

The organisational structure was approved in August 2017, to ensure that the Department delivers on its key strategic goals and objectives, as well as to ensure stability to achieve alignment between the new strategic direction and the organisational structure.

The Department embarked on the realignment of its structure in 2015 to review and redesign its delivery model to ensure that it has adequate capacity to deliver on its strategic priorities and to take its mandate forward. This project formed the basis of diagnosing where and how the Department needed to focus, in reorganising the organisation, processes and people.

See Approved Organogram on the next page
























6. ORGANISATIONAL STRUCTURE OF THE E-GOVERNMENT

Member of Executive Council (MEC) :FinanceMs Barbara Creecy

Head of Department: Gauteng Department

of e-GovernmentMr Boy Ngobeni

Directorate: Risk Management

Ms Sempotseng Mmope

Branch: Information

Communication Technology(ICT) Shared Services

Mr David Kramer

Branch:Corporate

ManagementMs Mmamokgadi

Mashala

Chief Directorate: Human Resource

ServicesMr Jabulani Malobane

Chief Directorate: Financial

ManagementMr Ntlhane Bopape


Notes


Main services

BeneficiariesMain services

Current/actual standard of service

Desired standard of service

Actual achievement

Information

Communication-

Technology (ICT)

Network Services

Gauteng City

Region (GCR)

98% Gauteng

Broadband

Network

availability

98% Gauteng

Broadband

Network

availability

99.97 % Gauteng

Broadband Network

availability

Current/actual arrangements Desired arrangements Actual achievements

Quarterly Service Level Agreement Performance Reporting & Meetings

4 Service Level Agreement

Performance Reporting & Meetings

4 Service Level Agreement Performance Reporting & Meetings.

1.2. Service Delivery Improvement Plan

The table below highlights the service delivery achievements.

Main services and standards

Complaints mechanism

e-Government uses the GPG centralised complaint management systems i.e. GPG Hotline.

1.3. Organisational Environment

In terms of optimising the functioning of the Department to improve service delivery, specific focus was given to revision of the organisational structure that was intended to be concluded in August 2017. Although the revision of the organisations structure was not finalised as planned, a significant achievement was the approval of the interim structure and initiation of the development of the Department’s Service Delivery Model, which will inform the revision of the organisation, to ensure that the structure, related functions, processes and systems are fully aligned to the organisation’s strategy and mandate.

The Human Resource Plan has been developed to address the specific challenges relating to the ICT scarce skills, employee wellness and transformation targets.

1.4. Key policy developments and legislative changes

There were no policy developments and legislative changes in the year under review.

Service delivery information toolCurrent/actual information tools Desired information tools Actual achievements

The approved e-GOV. Service Charter 2017-2018 displayed at all frontline offices, Internet and Intranet.

1 approved e-GOV. Service Charter 2017-2018 displayed at all frontline offices, Internet and Intranet.

1 approved e-GOV. Service Charter 2017-2018 displayed at all frontline offices, Internet and Intranet.

• Suggestion Boxes placed at frontline offices and• GPG Hotline

• Suggestion Boxes• GPG Hotline• Online complaint channel

Total number of complaints received and resolved by the Gauteng Department of e-Government – 20674 (83%) out of 24786.

The 4112 (17%) of those complaints were not Gauteng Department of e-Government related.

Current/actual complaints mechanism Desired complaints mechanism Actual achievements



2. STRATEGIC OUTCOME ORIENTED GOALS

The National Development Plan (NDP) offers a long-term perspective and defines a desired destination and identifies the role different sectors of society need to play to eliminate poverty and reduce inequality by 2030.

The long-term plans of the department are aligned with outcomes 3, 6 and 12 of the NDP.

In line with Outcome 6 of the National Development Plan which outlines the strategy for an efficient, competitive and responsive economic infrastructure network. In this regard the provinces have adopted the Transformation, Modernisation and Re-industrialisation (TMR) programme that has 10 Pillars.

The Department has aligned to the provincial Ten Pillar Programme of the TMR, particularly to Pillar 4, Transformation of the State and Governance and Pillar 5, Modernisation of the Public Service. Also, the Department’s, mandate is aligned to the key focus areas of the Governance and Planning Cluster, namely, the creation of a dynamic, proactive and responsive government, and developing an integrated, connected, efficient and smart public service.

The Department’s has 5 Strategic Pillars of its own, aligned to the TMR, namely: • To build an enabling ICT infrastructure for the GCR connected government;• To create the enabling platform and support services to enable GCR entities to design, develop and deliver e-Government

Services;• To establish a GCR e-Government governance structure to drive priorities, policies, standards and regulations; • To promote usage of e-Government services (Citizens, Businesses and Government Entities); and• To stimulate the ICT economy through facilitating incubation and innovation as well as encouraging public private partnerships

for the development and roll-out of e-Government services.

In addition to the recommendations made by the report, the Department of e-Government has engaged with partners in the ICT industry and the higher education sector to explore issues relating to best practices in digital transformation.

Through the implementation of the departmental pillars, the Department realises the achievement of the TMR in the province and the following indicators in the NDP:

• Implement an enabling, coordinated and integrated e-strategy• An ICT sector that enables economic activity• Affordable, widely available broadband for economic and social development• Demand stimulation and job development• The state, market structure and institutional arrangements• Institutional capacity building and competencies

Outcome 12 of the NDP, an efficient, effective and development-oriented public service, addresses poverty and inequality requires a state that is capable and is transformative. This requires well run and effective state institutions staffed by skilled public servants committed to the public good and delivery consistently high-quality service to the public.

2.1. Improving ICT Infrastructure

The foundation for the digital ecosystem is the infrastructural base upon which the ecosystem rests. This infrastructural base consists of the following:

• Gauteng Broadband Network (Wide Area Network (WAN))• Local Area Network (LAN) and Voice Infrastructure• ICT Security • Computing Infrastructure

o Data Centres and Cloud Technologieso Server Infrastructure

• End User Computing Infrastructure (Desktops, laptops etc.)

This requires an effective GPG connectivity network and a range of mechanisms to link to the network. There following are the infrastructure objectives for the ecosystem:

2.1.1. Gauteng Broadband Network (WAN)The Department of e-Government is rolling out the Gauteng Broadband Network (GBN) and has completed Phase 1 of the project. Through Phase 1, the Department has connected 1181 provincial sites, including government sites, Thusong Centres and economic zones in the five (5) development corridors of the province.


To Department has engaged SITA to rollout Phase 2 of the Gauteng Broadband Network (GBN), which will realise connectivity to all remaining provincial sites.

2.1.2. Local Area Network (LAN) and Voice Infrastructure

In order to provide end-to-end connectivity, the end-users are required to access e-services and applications through a local area network. The provision of the local area network has always been the responsibility of individual departments. This has resulted in poor LAN provisioning, and resultant services, by departments.

Currently, the Department of e-Government is implementing Voice Over Data as a service on the broadband network. This involves the rollout of Voice infrastructure to enable telephony on GBN. The quality of the telephony is dependent on the quality and standard of the LAN.

It has become clear that the implementation of LAN needs to be a transversal function and rolled out in conjunction with the rollout of the broadband network. This is to be done by the Department of e-Government.

2.1.3. ICT Security

Information security refers to a set of strategies for managing the processes, tools and policies necessary to prevent, detect, document and counter threats to digital and non-digital information. This is a transversal function under the mandate of the Department of e-Government.

As part of its mandate the Department of e-Government has developed the following:

• A GPG cybersecurity policy and strategy.• Implemented a Security Operations Centre (SOC).• Cybersecurity detection and prevention tools.

The Department of e-Government will improve the cybersecurity capabilities of the province and prioritise the development of cybersecurity skills.

2.1.4. Computing Infrastructure

Computing infrastructure is a set of physical and virtual computer resources that are required to run applications and e-services and provide data storage.

The Department of e-Government, as the custodian of centralised computing infrastructure is in the process of migrating departmental applications, e-services and data into a cloud based Fully Managed Data Centre (FMDC).

It is important that GPG’s computing infrastructure can adjust quickly and cost-effectively to accommodate changing demand. For this reason, the Department of e-Government will facilitate the exploration of alternative solutions, including a hybrid cloud model.

2.1.5. End User Computing Infrastructure (Desktops, laptops etc.)

The Department of e-Government has developed Norms and Standards for guiding departments on the purchase and implementation of end-user devices. That will ensure interoperability of applications and e-services.

2.2. Applications and E-Services / Solutions and Systems

Applications and e-services are technology enabled GPG services. The Department of e-Government is mandated to provide and maintain the GPG Common Platform. The Common Platform provides a single window for citizens to access government services. In addition, the Departments is required to facilitate the development and presentation of these services for and on the Common Platform. The Department will:

• Plan, design and implement GPG transversal applications and e-services that are required and used by GPG departments. • Plan, design and implement sector specific applications and e-services on request.• Publish required applications and e-services on the GPG Common Platform.• Facilitate the integration of applications and e-services where necessary.• Develop standards and architectures to guide client departments and entities on how to implement applications.• Continuously assist the client departments and entities in the assessment of its service delivery requirements and to provide advice that will ensure that the client departments and entities receives appropriate services from the Department;• Ensure testing and certification of transversal applications and ICT solutions on behalf of the province.


2.2.1. E-Service Development and the GPG Common Platform

The development of a common platform for GPG requires alignment and conformity in the configuration of applications. This will also facilitate the sharing of data between departments to allow better and more informed service delivery that will benefit citizens. This may require the review and modernisation of business processes for client department and entities.

To better manage and control the modernisation process and e-service development, the Department of e-Government developed and monitors compliance to the standards for the development and configuration of applications and e-services for publishing on the GPG common platform.

2.2.2. Provide a common platform, applications and e-services to citizens, business, employees, visitors and government.

For GPG to deliver ICT enabled services for citizens, business and government, the Department of e-Government is delivering a consolidated service delivery and access channel capability through the GPG common platform. The Department of e-Government is providing the infrastructure that is needed for the common platform. The platform offers a range of online e-services, and updated government information. This allows citizens to provide information and to engage with government utilising access channels of their choice, e.g. mobile phones, tablets etc.

2.2.3. Promote usage of Government e-services by Citizens, Businesses, Visitors and Government Entities

The Department of e-Government will manage the advocacy of the common platform. All GPG departments will need to continuously communicate with their target beneficiary communities through and about the GPG common platform and e-services. The Department of e-Government will liaise with Office of the Premier on the communication of the common platform and e-services.

2.2.4. Applications Development Support and Testing

The Department of e-Government will continuously assist client departments and provincial entities in the assessment of their service delivery requirements and provide technical advice that will ensure that the client departments and entities receive the appropriate services from the Department.

The Department will also ensure that the testing and certification of transversal applications and ICT solutions is done on behalf of the province.

2.3. Strengthening Governance and Management

The successful development and facilitation of the GPG digital ecosystem requires a high standard of governance and management. Best practice points towards a more centralised approach with high levels of consultation and cooperation. The Department of e-Government will also facilitate and coordinate contracts, business agreements and service level agreements for transversal applications on behalf of the province.

2.3.1. Centralised Support, Management and Monitoring

Effective coordination through more centrally led management will facilitate standardisation, support, monitoring and oversight in respect of the planning and management of the digital ecosystem and of data for better decision making across GPG.

The Department of e-Government is working with GPG departments to develop a system and processes for effective collaboration and consultation on the development, implementation and maintenance of provincial ICT infrastructure, applications and e-services. This includes developing a stratified and tiered approach through which transversal GPG procurement projects will be centralised and implemented by the Department of e-Government.

All ICT procurement, whether centralised or decentralised, will be centrally registered and monitored. This will enable all possible duplications, cost-inefficiencies or deviations from agreed specifications to be pre-empted and addressed and will ensure that procurement is aligned to best practice and approved GPG wide specifications.

2.3.2. Centralised Endorsement and Monitoring of ICT Projects

There is no single overall view of ICT projects or modernisation activities across the GPG. There is an incomplete, inaccurate and out-of-date map of the ICT or ICT-linked projects and programmes throughout the GPG landscape. There is also no accurate updated detailed information about ICT budgets or expenditure across GPG. This leads to poor awareness of the GPG ICT


3. PERFORMANCE INFORMATION BY PROGRAMME

3.1. Programme 1 – Administration

Purpose: To provide executive leadership, oversight and accountability for the performance and outcomes of the Gauteng Department of e-Government. To render corporate support services that create an enabling environment for the effective, efficient, economical and controlled departmental operation.

Strategic Objective: To efficiently administer and manage the Gauteng Departmen of e-Government.

Sub-Programme1.1. Office of the HOD

Sub-Programme1.2. Corporate Management

Sub-Programme1.3. Office of the Chief Financial Officer

Sub-Programme1.4. Risk Management

landscape, inadequate control of the modernisation process, missed opportunities for transversal cooperation and operational challenges such as inadequate ICT infrastructure to support new applications. To align provincial ICT projects, the Department of e-Government will catalogue all current and future GPG ICT projects to monitor and support their implementation.

2.3.3. ICT Capacity and Skills Development

The shortage of skills and capacity needed to drive and sustain digital transformation, modernisation and the effective use of GPG’s ICT resources, particularly and increasingly impact on critical areas such as the data management and cybersecurity of the GPG. In addition, there is a national skills deficit that makes it difficult for GPG to attract and retain specialist skills. The Department of e-Government will therefore develop and facilitate a strategy to implement a GPG-wide programme of skills, competency and capacity building to both improve internal and GPG ICT skills and to attract more young ICT graduates into the province.

In addition, the Department of e-Government will work with the entire education system to ensure that the education system produces the required ICT skills, ensure that experienced people are re-skilled in technological advancements as well as attract the right skills to balance demand and supply of the provincial digital ecosystem.

2.3.4. ICT Function Monitoring, Measurement and Reporting

There is a lack of transparency at a provincial level of the holistic ICT environment in respect of expenditure, resources, technology platforms, applications, services and vendor and supplier contracts. To remedy this, the Department of e-Government will develop and implement a continuous ICT monitoring, measurement and reporting system across GPG departments to identify and react to issues that impact on the overall cost-efficiency of ICT usage in parts of or across GPG.

Programme Name: Administration



Strategic objectives Actual Achievement

2016/2017

Planned Target2017/2018

Actual Achievement2017/2018

Deviation from planned target to Actual Achievement for 2017/2018

Comment on

deviations

Strategic objectives, performance indicators, planned targets and actual achievements

To efficiently administer and manage the e-Government Department-Office of the HOD

98% Budget spent

100% Budget spent

91% Budget spent

9% Budget spent below target. Due to projects planned for but not executed

The Department has put plans in place to ensure that the planned projects are executed in the new financial year

4 Departmental Risk Maturity level

4 Departmental Risk Maturity level

4.5 DepartmentalRisk Maturity level

0.5 Departmental Risk maturity level above target

Target Achieved

Performance indicators

Performance

Indicator

Actual

Achievement

2015/2016

Actual

Achievement

2016/2017


Actual Achievement

2017/2018


Comment on

deviations

Percentage Level 4 achievement on MPAT standards

N/A N/A 91% Level 4 achievement on MPAT standards

91.3% Level 4 achievement on MPAT standards

None Target

Achieved

Departmental risk register approved

N/A N/A 1 Departmental risk register approved

1 Departmental risk

register was approved

None Target

Achieved

ICT risk profile conducted

N/A N/A 1 ICT risk profile conducted

1 ICT risk profile conducted and approved

None Target

Achieved

Transversal HR risk analysis conducted

N/A N/A 1 Transversal HR risk analysis conducted

1 Transversal HR risk analysis conducted

None Target

Achieved

Percentage of supplier invoices paid within 30 days of receipt

96% of suppliers werepaid within 30 days ofreceipt of invoice

99.5% ofsupplierinvoices paidwithin 30 daysof receipt

100% supplier invoices paid within 30 days of receipt

98% supplier invoices

paid within 30 days

of receipt

2% supplier invoices paid within 30 days of receiptbelow target

The Department provided the necessary capacity to process invoices

Percentage of tenders processed through the open tender process

N/A N/A 80% tenders processed through the open tender process

100% of tenders

the open tender process

processed through

20% of tenders processed through the open tender process above target

Target Achieved



The Department has achieved 90% of targets under the Administration Programme. There was underachievement on percentage of supplier invoices paid within 30 days of receipt.

Reasons for deviations: The percentage of supplier invoices paid within 30 days of receipt target was not achieved due to the lack of capacity to process invoices and ensure that service providers are paid within the prescribed timelines.

Strategy to overcome areas of under performance: To mitigate this challenge, the recruitment plan was implemented and the unit was provided with human resources arising out of the implementation of the human resource plan.

Changes to planned targets: There were no changes to planned targets during the year.

Percentage procurement spend of RFQs below R500 000 on township economy

N/A 49% procurementspend ofRFQs belowR500 000 ontownshipeconomy

30% procurement spend of RFQs below R500 000 on township economy

32.54% procurement spent on RFQs below R500 000 on township economy

2.54% procurement spent on RFQs below R500 000 on township economy above target

Target Achieved

Number of Assessment Reports on the Promotion of e-Services produced

N/A N/A 4 Assessment Reports on the Promotion of e-Services produced

4 Assessment Reports on the Promotion of e-Service were produced

None Target Achieved

Number of service level agreements with

N/A N/A 14 service level agreements with departments reviewed

14 service level agreements with departments reviewed and signed


departments reviewed

Number of learnerships facilitated

N/A 710 Trainingand jobopportunitiesfacilitated forunemployedICT youth

200 Learnerships facilitated

200 Learnerships were facilitated



Performance

Indicator

Actual

Achievement

2015/2016

Actual

Achievement

2016/2017


Actual Achievement

2017/2018


Comment on

deviations

Sub-Programme Name: 2.1 Governance Structures


Administration

2017/2018 2016/2017

Final Actual (Over)/Under Expenditure

%Budget

spent


%Budget

spentAppropriation Expenditure Appropriation Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

3.2. Programme 2: Information Communication Technology Shared Services

Purpose: To establish an ICT e-Government governance structure; to build and enabling ICT infrastructure and platform for common GCR e-Services and to promote the usage of e-Government services

3.2.1. Sub-programme 2.1 Governance Structures

Purpose: Responsible for the development of GCR e-Government frameworks and policies and ensuring that these are approved. It is also responsible for establishing communities of practice and finalising terms of reference for the e-Government forum.

Strategic objective: To establish a GCR e-Government governance structure to drive priorities, policies, standards and regulations

Strategic objectives, performance indicators, planned targets, and actual achievement

Linking performance with budgets

Strategic objectives Actual

Achievement

2016/2017

Planned Target

2017/2018

Actual

Achievement

2017/2018

Deviation from

planned target to

Actual

Achievement for

2017/2018

Comment on

deviations

To establish a GCR e-

Government governance

structure to drive priorities,

standards and regulations

3 new provincial

ICT policies

approved

2 new provincial ICT policies approved

2 new provincial None

ICT policies were

approved

Target Achieved

Compensation of Employees

132 075 130 738 1 337 99.0 104 127 98 528 5 599 94.6

Goods and Services

88 570 83 127 5 443 93.9 72 145 61 126 11 019 84.7

Transfers and Subsidies

292 293 (1) 100.0 414 229 185 55.3

Payments of Capital Assets

7 143 7 127 16 99.8 7 199 7 198 1 100.0

Payments for Financial Assets

42 42 0 100.0 13 13 0 100.0

TOTAL 228 122 221 327 6 795 97.0 183 898 167 094 16 804 90.8

Sub-Programme Name: 2.1 Governance Structures


Performance Indicators

Performance

Information

Actual

Achievement

2015/2016

Actual

Achievement

2016/2017

Planned Target

2017/2018

Actual

Achievement

2017/2018

Deviation from

planned target

to Actual

Achievement

for 2017/2018

Comment on

deviations

Number of Provincial situational analysis of ICT functions conducted

N/A N/A 1 Provincial situational analysis of ICT functions conducted

1 Provincial situational analysis of ICT functions conducted


Number of service delivery improvement plans developed

N/A N/A 1 service delivery improvement plan developed

1 approved service delivery improvement plan in place


Number of Provincial ICT standards approved

N/A N/A 5 Provincial ICT standards approved

5 Provincial ICT standards were approved


Number of Provincial communities of practice established

N/A 4 GCR e-Government

Communities of Practice established

1 Provincial community of practice established

1 Provincial community of practice established (Business Intelligence)


Number of provincial frameworks approved

N/A 8 Frameworks were approved

2 provincial frameworks approved

2 provincial frameworks were approved


Number of provincial ICT policies approved

N/A N/A 2 provincial ICT policies approved

2 provincial ICT policies were approved


Number of provincial ICT policies implemented, reviewed

N/A N/A 3 provincial ICT policies implemented, reviewed

3 provincial ICT policies were implemented and reviewed


Number of Provincial ICT commercialisation and revenue generation plan approved

N/A N/A 1 Provincial ICT commercialisa-tion and revenue generation plan approved

1 Provincial ICT commercialisa-tion and revenue generation plan was approved


100% of the targets were achieved. The provincial situational analysis of ICT functions conducted was not achieved in Quarter 1 as planned but was subsequently achieved in Quarter 2.

Reasons for deviations: None

Strategy to overcome areas of under performance: None


Sub-Programme Name: Enabling infrastructure


Sub-Programme Name: Enabling infrastructure

3.2.2. Sub-programme 2.2 Enabling Infrastructure

Purpose: Responsible for the connectivity and maintenance of GBN, the upgrade of the core network and connecting the GCR entities to cloud.

Strategic objective: To build an enabling ICT infrastructure for the GCR connected government


Sub-programme 2.2 Enabling Infrastructure

Purpose: Responsible for the connectivity and maintenance of GBN, the upgrade of the Core network and connecting the GCR entities to cloud.

Strategic objective: To build an enabling ICT infrastructure for the GCR connected government


Strategic objectives Actual Achievement 2016/2017




Comment on deviations

To build an enabling ICT infrastructure for the GCR connected government

99.97% Broadband Network availability

98% Broadband Network availability

99.97% Broadband Network availability

1.97% Broadband Network availabilityabove target

Target Achieved


Actual Achievement 2015/2016


Planned Target

2017/2018




Number of G2C sites connected (Thusong Centres & Libraries)

Connected 22 Thusong Centres

13 G2C Sites connected (Thusong Centres and Libraries)

13 G2C sites connected (Thusong Centres & Libraries)

17 G2C sites connected (Thusong Centres & Libraries)

4 G2C sites connected (Thusong Centres & Libraries) above target

The overachievement was due to sites that were previously connected on APN then later upgraded to a permanent solution

Number of G2B sites connected (Economic zones, iKasi Labs, mLabs)

11 Economic zones connected

4 G2B sites connected (Economic Zones, iKasi Labs, mLabs)

2 G2B sites connected (Economic zones, iKasi Labs, mLabs)

1 G2B sites connected (Economic zones, iKasi Labs, mLabs)

1 G2B sites connected (Economic zones, iKasi Labs,

Upon conclusion of the procurement process the sites will be connected in the new financial yearmLabs) below

target

Number of G2G sites connected

N/A 283 G2G sites connected (Departments and Agencies)

800 G2G sites connected

332 G2G sites connected

468G2G sites connected belowtarget

Upon conclusion of the procurement process the sites will be connected in the new financial year

Number of Departments/Entities assessed for cloud readiness

N/A 3 entities assessed for cloud readiness

2 Departments/Entities assessed for cloud readiness

4 Departments have been assessed for cloud readiness

2 Departments have been assessed for cloud readinessabove target

Target Achieved

Number of departments migrated to the standard cloud package

5 GPGDepartmentsmigratedinto GPG cloud

0 entities connected to private cloud

5 Departments migrated to the standard cloud package

0 Departments migrated to the standard cloud package

5 Departments migrated to the standard cloud package below target

The migration process is in progress and will be completed in the new financial year

Sub-programme 2.3 Enabling Platform


To create an enabling platform and support services to assist GCR entities to design, develop and deliver e-Government services.

Performance Actual 2015/2016

Actual 2016/2017

Planned Target Actual 2017/2018

Deviation from to Actual Achievementfor 2017/2018


33% of the targets were achieved.

Reasons for deviations: • The deviations in terms of set targets was due to third party dependencies and delays in procurement process.• The Number of Departments/Entities assessed for cloud readiness target was overachieved due to the availability of client departments

Strategy to overcome areas of under performance: The Department has engaged the executive management of the procurement agent in order to prioritise the conclusion of the procurement process to ensure that sites will be connected in the new financial year.


3.2.3. Sub-programme 2.3 Enabling Platform

Purpose: To create an enabling platform and support services to empower GCR entities to design, develop and deliver e-Government services as well as to ensure the availability of GPG transversal services.

Strategic objective: To create the enabling platform and support services to assist GCR entities to design, develop and deliver e-Government services


Strategic objectives






Phase one of the common platform (re-design of the GPG website) has been implemented.

Implementation of the GPG common platform

The common platform with functionality layers was completed and implemented


Number of Entities connected to the private cloud

N/A 0 entities connected to private cloud

2 Entities connected to the private cloud

0 Entities connected to the private cloud

2 Entities connected to the private cloud below target

The entities will beconnected to cloudcompleted in the new financial year

Sub-Programme Name: Enabling infrastructure (continued)










Number of common platforms with functionality layers implemented

N/A Phase one of the common platform (re-design of the GPG website) has been implemented.

1 common platform with functionality layers implemented

The common platform with functionality layers was completed and implemented


Number of e-Services published on the e-Government

N/A N/A 8 e-Services published on the e-Government convenience

9 e-Services published on the e-Government convenience

published on the e-Government convenience

Target Achieved

convenience platform (common Platform) platform

(common Platform)

platform (e-Recruitment,Schools e-Admissions, Tshepo 1m (phase 1 done), ICT Township registration, Conservation Permit System, Military Veterans, Liquor license, GIS, Gauteng waste management information system)

platform (common Platform) above target

Number of Provincial e-Government mobile applications developed (Provincial Mobile App Platform,

N/A N/A 4 Provincial e- Governmentmobile applications developed

4 Provincial e-Government mobileapplications were developed (My Gauteng; Namola app; e-Recruitment mobile app, Community Safety Complaints App)


GRV, e-Recruitment, CRM)

(Provincial Mobile App Platform, GRV, e-Recruitment, CRM)

applications

Number of e-Services tested and validated by the DAV Centre

N/A N/A 6 e-Services tested and validated by the DAV Centre

10 e-Services tested and validated by the DAV Centre (1.e-admissions, 2. Ntirhisano Tracking, 3. e-Submissions, 4. Military veterans, 5. Tshepo 1

4 e-Services tested and validated by the DAV Centreabove target

Target Achieved

1 e-Services






Reasons for deviations: • The overachievement of the Number of e-Services published on the e-Government was due to additional applications that were completed from other departments that have been deployed to the common platform.• The overachievement of Number of e-Services tested and validated by the DAV Centre was due to greater demand from GPG departments.• The Percentage availability of GPG transversal services was overachieved due to the effective implementation of the SLA and Hosting of transversal services by Telkom.











million, 6. Conservation Permit, 7. e-Recruitment, 8. Township Registration, 9. IMPACC, 10. M&E OoP Phase 1)

Percentage availability of GPG transversal services

N/A N/A 98% availability of GPG transversal services

100% availability of GPG transversal services

2% availability of GPG transversal services above target

Target Achieved

Number of e-Government data classification completed

N/A N/A 1 e-Government data classification completed

1 e-Government data classification was approved and completed







To promote the usage of e-Government services (Citizens, Business and Government Entities).

118, 468 100 000 Registered users utilising e-services

733,411 registered users utilising e- services

633,411 registered users utilising e-services above target

Target Achieved

Sub-programme 2.4 Promotion of the usage of e-government services

3.2.4. Sub-programme 2.4 Promotion of the usage of e-government services

Purpose: To ensure the promotion of usage of e-services by citizens, businesses and government entities.

Strategic objective: To promote the usage of e-Government services (Citizens, Business and Government Entities).










Number of digital ambassadors appointed

N/A N/A 20 digital ambassadors appointed

40 Digital ambassadorswere appointed and deployed

20 digital ambassadors appointed above target

Target Achieved

Number of workshops on SAP advocacy

N/A N/A 6 Workshops on SAP advocacy

7 Workshops on SAP advocacy conducted(at GDHS, Helen Joseph, Steve Biko, Tshwane rehab, EMS, Tara and

1 Workshops on SAP advocacyabove target

Target Achieved

Bertha Gxowa entities)

Number of Customer Satisfaction Surveys conducted (G2G, G2B, G2C)

N/A 3 public surveys were completed

3 Customer Satisfaction Surveys conducted (G2G, G2B, G2C)

4 Customer Satisfaction Surveys conducted (1 G2C-citizen survey, 2 G2G ESS & executive support,1 G2B survey)

1 Customer Satisfaction Surveys conducted (G2G, G2B, G2C) above target

Target Achieved

Number of e-Services promoted

N/A N/A 8 e-Services promoted

Promoted 8 e- Services (e-Recruitment, Central Supplier database, Conservation Permit System, ICT Registration for SMME’s,


Namola, Ntirhisano tracking, e-PMDS, ESS)

Number of registered users utilising e-services

N/A 118, 468 100 000 Registered users utilising e-services

733,411 registered users utilising e-services

633,411 registered users utilising e-servicesabove target

Target Achieved

Number of Provincial e-Services Incentive Programme rolled out

N/A N/A 10 Provincial e-ServicesIncentive Programme rolled out

10 Provincial e-Services Incentive Programme rolled out (Employee Self Service Leave Applications, e-PMDS, Conservation Permit System, ICT Registration






Reasons for deviations: • The overachievement of the Number of digital ambassadors appointed target was due to the decision taken to appoint artificial intelligence officers as digital ambassadors.• The overachievement of the Number of workshops on SAP advocacy target was due to the availability of additional client departments.• The overachievement of the Number of Customer Satisfaction Surveys conducted was due to an additional request made.• The overachievement of the Number of registered users utilising e-services target was due to greater demand from Gauteng citizens.



for SMME’s, Namola, Ntirhisano Tracking, Military Veterans, e-invoicing,CSD,e-recruitment)

3.2.5. Sub-programme 2.5 ICT Industry Stimulation

Purpose: To conduct private and public partnerships and implement these framework agreements. Also, to ensure the implementation of incubation and innovation programmes.

Strategic objective: To stimulate the ICT economy by facilitating incubation and innovation as well as encouraging public private partnerships for the development and roll-out of e-Government services.







To stimulate the ICT economy by facilitating incubation and innovation as well as encouraging public private partnershipsfor the development and roll-out of e-Government services.

N/A 100,000 Participants in the Action lab Programme

There were 81,373 participants in the action lab programme

18,627Participants in the Action lab Programme below target








The department is considering increasing the number of partners


Sub-programme 2.5 ICT Industry Stimulation


Number of participants in the Action lab Programme

N/A N/A 100,000 Participants in the Action lab Programme

There were 81,373 participants in the action lab programme

18,627Participants in the Action lab Programme below target

Number of partnership agreements concluded

N/A 3 strategic partnerships were concluded

3 Partnership agreements concluded

8 Partnership agreements signed and concluded

5 Partnership agreements signed and concluded abovetarget

Target Achieved

Number of ICT concepts from township entrepreneurs tested

N/A N/A 5 ICT concepts from township entrepreneurs tested

6 ICT concepts from township entrepreneurs tested at the DAV Centre1. The “SPAZA"

shop digital

newspaper,

2. Vuleka-

1 ICT concepts from township entrepreneurs tested above target

Target Achieved


83.33% of the targets were achieved.

Reasons for deviations: The number of participants in the Action Lab Programme target was not achieved because not all partners had updated statistics regularly. There had also been delays in getting the project off the ground in schools.

The over achievement of the number of partnership agreements concluded target was due to the success of the partnership strategy.

The number of ICT concepts from township entrepreneurs tested target was overachieved due to greater demand from GPG Departments.




Planned Target

2017/2018




Number of ICT Industry Stimulation strategies approved

N/A N/A 1 ICT Industry Stimulation strategies approved

1 ICT Industry Stimulation strategies was approved


Number of ICT Action Lab Strategies approved and implemented

N/A N/A 1 ICT Action Lab Strategies approved and implemented

1 ICT Action Lab Strategies was approved andimplemented


3. Saya Setona - mobile 4. Atinov, 5. Songo Ventures 6. Zakhele Lumka

Number of township developers appointed to develop e-services

N/A N/A 5 Township developers appointed to develop e-services

10 Developers were appointed to develop applications

5 Township developers appointed to develop e-services above target

Target Achieved

The department is considering increasing the number of partners

Sub-programme 2.5 ICT Industry Stimulation


3.3. PROGRAMME 3: HUMAN RESOURCE SERVICES

Purpose: Ensuring the optimal use, digitisation and promotion of Human Resource Services (HRS) related business processes to enable efficient decision making.

Strategic Objective: To optimise, digitise and promote Human Resource Services related business processes to enable efficient decision making.


InformationCommunicationTechnologySharedServices

2017/2018 2016/2017

Final Actual (Over)/Under

Expenditure

% Budget

spentFinal Actual (Over)/Under

Expenditure

%Budget


R’000 R’000 R’000 R’000 R’000 R’000


137 933 136 690 1 243 99.1 114 440 106 997 7 443 93.4

Goods and Services

914 451 797 505 116 946 87.2 682 303 619 402 62 901 90.7


22 944 22 943 1 100.0 22 910 22 910 0 100.0


51 532 51 532 0 100.0 149 080 211 834 62 754 142.0


0 0 0 0 0 0 0 0

TOTAL 1 126 860 1 008 670 118 190 89.5 968 733 961 143 7 590 99.2

Linking performance with budgets

Programme Name: Human Resource Services

Strategic

Objective

Actual

Achievement

2016/2017

Planned Target

2017/2018

Actual Achievement

2017/2018

Deviation from

planned target to

Actual

Achievement for

2017/2018

Comment on

deviations

To optimise,

digitise and

promote HRS

related business

processes to

enable efficient

decision making

N/A 8 GPG departments with full HR SAP ESS module rollout

9 GPG departments with full HR SAP ESS module rollout (GIFA, GDHS, Tshwane Rehab, Steve Biko, Helen Joseph, Lebone College, EMS, Bertha Gxowa and Tara Hospital)

The overachievement was due to the availability of additional client department

Target Achieved

The Number of township developers appointed to develop e-services tested target was overachieved due to greater demand from GPG Departments.

Strategy to overcome areas of under performance: To address the under performance of the Number of participants in the Action Lab Programme target the department is considering increasing the number of partners.The Number of partnership agreements concluded target was achieved.



Programme Name: Human Resource Services

Performance

Indicator

Actual

Achievement

2015/2016

Actual

Achievement

2016/2017

Planned Target

2017/2018

Actual

Achievement

2017/2018

Deviation from

planned target

to Actual

Achievement

for 2017/2018

Comment on

deviations

Number of GPG departments with full HR SAP ESS module rollout

N/A N/A 8 GPG departments with full HR SAP ESS module rollout

9 GPG departments with full HR SAP ESS module rollout (GIFA, GDHS, Tshwane Rehab, Steve Biko, Helen Joseph, Lebone College, EMS, Bertha Gxowa and Tara Hospital)


Target Achieved

Number of GPG departments utilising e-PMDS

Rolled outautomatede-PMDS to 3 GPGDepartments that are SAP

3 automatedSAP ESSenablede-PMDS rolledout to GPG

3 GPG departments utilising e-PMDS

5 GPG departments utilising e-PMDS (Health, Education,

The overachievement was due to the availability of

ESS enableddepartments Community

Safety and Sports, Social developmentdates)

additional client departments

Number of GPG departments utilising e-Recruitment

N/A N/A 3 GPG departments utilising e-Recruitment

3 GPG departments utilising e-Recruitment (GDE, GIFA and Social Development)


Number of GPG departments utilising Automated Termination Services

ESS enabledautomatedterminationsystem rolledout to 2Departmentsthat are SAPESS enabled

2 SAP ESSenableAutomatedTerminationSystem rolledout to GPGDepartments

3 GPG departments utilising Automated Termination Services

4 GPG department utilising Automated Termination Services (Tshwane Rehab, Steve Biko, Helen Joseph and EMS)


Target Achieved


Reasons for deviations: The overachievement was due to demand for e-Government services





Human ResourceServices

2017/2018 2016/2017


%Budget

spentFinal Actual (Over)/Under

Expenditure

%Budget


R’000 R’000 R’000 R’000 R’000 R’000


98 873 96 563 2 310 97.7 105 976 104 562 1 414 98.6

Goods and Services

6 884 6 731 153 97.8 4 089 4 089 0 100.0


314 314 0 99.7 26 27 (1) 100.0


0 0 0 0 458 456 2 100.0


6 6 0 100.0 6 7 (1) 100.0

TOTAL 106 077 103 614 2 463 97.7 110 555 109 141 1 414 98.7

1. OVERVIEW OF DEPARTMENTAL PERFORMANCE

1.1. Service delivery environment

The Department has continued to implement the Strategic Plan aligned to the provincial TMR pillars. Over the past financial we have continued to play a critical role as a digital enabler by rolling out the Gauteng Broadband Network to enabler both access and the digital economy.

Pillar 1: To build an enabling ICT infrastructure for the GCR connected government

The Department continued to implement the rollout of the Gauteng Broadband Network, increasing the number of sites provided with connectivity to the internet as well as to VoIP (Voice over Internet Protocol) telephony.

The GPG has a Fully Managed Data Centre (FMDC), which is our baseline Cloud infrastructure. The FMDC houses the provincial data and applications and the Department is facilitating the migration of all provincial data into the FMDC. Cloud computing allows organisations to have business information available and secure at all times. To date, nine (9) departments have migrated into the GPG private cloud. The Department will be migrating the remaining five (5) GPG departments as well as the provincial government entities to the cloud in the next financial year.

Despite numerous cyberattacks and information breaches reported internationally and locally, the Gauteng Provincial Government remains one of the more secure ICT environments. The Department continued to enhance the province’s cybersecurity capability through continued implementation of its internationally benchmarked cybersecurity policy and strategy; Security Operations Centre; and Cybersecurity detection and prevention tools.

Pillar 2: To create the enabling platform and support services to enable GCR entities to design, develop and deliver e-Government Services

The Department has experienced an increase in the demand for the development of e-services. The Department will continue to deliver a consolidated service delivery and access channel capability through the GPG common platform.

Pillar 4: To promote the usage of e-Government services (Citizens, Business and Government Entities)

The Department has started making inroads in this regard and is collaborating with industry partners. Partnerships with these institutions involved the training, development and placement of 81373 township youth.

Pillar 5: To stimulate the ICT economy through facilitating incubation and innovation as well as encouraging public private partnerships for the development and roll-out of e-Government services

The Department of e-Government has identified the shortage of skills and capacity needed to drive and sustain digital transformation, modernization and the effective use of GPG’s ICT resources. This will particularly and increasingly impact on critical areas such as data management and cybersecurity, where there is a national skills deficit that makes it difficult for GPG to attract and retain specialist skills.

The Department conducted an ICT As-Is evaluation. The study has identified limited collaboration and cooperative ICT strategic planning, inadequate ICT skills and capacity to sustain modernization across the province as well as the poor management of ICT budgets and expenditure.

The SITA Act requires that all ICT goods and services are procured through SITA. Both SITA and the Department of e-Government, are required to adhere to the Supply Chain Management (SCM) regulations of the PFMA. To avoid the risk of non-compliance, the Department of e-Government has complied with the legislated procurement process despite the resultant duplicate of procurement processes of complying with PPPFA aligned procurement processes and subsequently, with SITA’s procurement processes. Procurement through SITA attracts additional service charges for the implementation of projects. This has resulted in time delays to the extent that the Department of e-Government has missed its Annual Performance Plan (APP) targets and public commitments.


Notes


PART C: GOVERNANCE

1. INTRODUCTIONChapter 13, Section 215(1) of the Constitution states that, “national, provincial, and municipal budgets and budgetary processes must promote transparency, accountability, and the effective financial management of the economy, debt and Public Sector”. The Risk Management directorate is established in the department as a governance structure to ensure that the highest standards of governance are maintained in the utilisation and management of public finances and resources.The Risk Management Committee and the Audit Committee are in place to provide assurance on compliance and governance matters as oversight structures. These Oversight Committees meet at least quarterly in a financial year. The Department has a functional Executive Management Team (EMT) that oversees the effective and efficient management of the Department.


2. RISK MANAGEMENT

The Accounting Officer (AO) has appointed a Risk Management Committee (the Committee) to assist in discharging the responsibilities pertaining to risk management and related controls. The Committee is chaired by an independent chairperson; and its members are senior officials employed by the department; formally appointed by the AO. The Committee met four times during the financial year to review and provide oversight to risk and ethics management processes. On a quarterly basis, the Chair of the RMC reports formally to the AO and the Audit Committee, escalating matters needing intervention where applicable.

The Department’s risk management is guided by the approved Risk Management Policy Framework. The Risk Management Implementation Plan which details the initiatives and activities of the Department is approved by the Head of Department. The risk assessment of the Department is performed annually and emerging risks are identified on an ongoing basis. The Risk Management directorate follow-ups on the implementation of the risk mitigations plans to ensure that there is implementation, to manage risks and reduce the exposure. Business units own their operational risk registers to monitor and implement the mitigation plans as per the agreed dates. Furthermore, the Audit Committee provides an independent oversight on the effectiveness of risk management in the Department.

3. EMBEDDING RISK MANAGEMENT

The top departmental and operational risk profiles per programme were finalised for the period under review. The RMC monitored risk mitigation progress quarterly. In addition, the Department conducted risk awareness sessions and risk assessments regularly including provision of clear definition of roles and responsibilities regarding management of risks to ensure commitment to effective risk management within the Department. The RMC ensured that the Department maintained and enhanced the maturity level of risk management to ensure the quality, integrity and reliability of the Department’s ERM processes. The improvement in the management of risks has translated into improvement in performance. However, there is room for further improvement.

4. FRAUD AND CORRUPTION

The Department has an approved Fraud Prevention Plan which includes the Fraud Policy and Response Plan. The Plan provides guidelines of activities to be performed by different business units within the Department to prevent, detect and report fraud and corruption activities guided by the Prevention and Combating of Corrupt Activities Act (PRECCA), to fight fraud and corruption.

Employees were sensitised on the process to follow in reporting fraud and corruption anonymously as per the whistle-blowing policy guided by Protected Disclosure Act.

The Department also complies with administrative justice legislation like Promotion of Administrative Justice Act (PAJA) and Promotion of Access to Information Act (PAIA) by subjecting certain tenders for public awards.

As part of the Prevention measures all Senior managers, Supply Chain Management and other designated officials are subjected to a vetting process. The Department also conducts background checks on all new appointees during the recruitment process.

Chapter 3 of the Public Service Regulations requires that all Senior Management Service (SMS) members declare their financial interests and submit these by the 30th of April of each year and that the Executive Authority should submit these to the Public Service Commission by the 30th of May. The Public Service Regulations (PSR) 2016 extended the requirement for annual financial disclosures interest to include middle management and officials on levels 1-10 employed within Supply Chain Management and Financial Management ‘other designated categories’. The Department complied fully with both the legislated deadlines for the year under review. As part of the prevention measures all senior managers, Supply Chain Management and other designated officials were subjected to a vetting process. The Department also conducts background checks on all new appointees during the recruitment process.

5. MINIMISING CONFLICT OF INTEREST

The revision of Public Service Regulations in 2016 has resulted in changes to the Public Sector Code of Conduct. The Department enrolled departmental officials with the National School of Governance for an Ethics Online Course dealing with the Code of Conduct through their eLearning programme.

6. CODE OF CONDUCT

The Department has an approved Occupational Health and Safety (OHS) Policy. The OHS Committee members were appointed. Training has been done for departmental health and safety representatives and first aid kits were replenished during the financial year.

7. HEALTH SAFETY AND ENVIRONMENTAL ISSUES

The Department engaged with the Finance Portfolio Committee on the following matters:• 2017/18 Quarterly Reports• 2016/17 Annual Report• 2018/19 Departmental Vote 13 Budget• GBN Focused Intervention Study

All issues raised by the Committee were addressed through Legislature processes.

8. PORTFOLIO COMMITTEES

The Department obtained a clean audit outcome, there were no prior modifications to audit reports

9. PRIOR MODIFICATIONS TO AUDIT REPORTS


The implementation of effective internal control helps in the achievement of the objectives of the Department. Effective controls also ensure sustainable and improved performance, in that potential risks are identified and mitigated to reduce the impact thereof on the performance of the organisation.

On a quarterly basis the Department conducts self-assessment of key controls wherein control deficiencies are identified. Internal Audit also conducts independent reviews, following up on significant audit findings raised by both internal and external audit thereby providing assurance to the Accounting Officer and oversight that controls are being implemented. The Department on an ongoing basis monitors implementation of audit recommendations where control deficiencies have been identified. Through the incident reporting mechanism, it is also able to identify high risk areas requiring strengthening of controls.

10. INTERNAL AUDIT AND AUDIT COMMITTEES

Name

Qualifications

Internal or external member

If internal, position in the department

Date appointed

Date resigned

Japie Du Plessis National Diploma: State Accounting and Finance

Registered Government Auditor

External - 01 October 2013

Current

Tshidi Molala Chartered Accountant (SA) M.Com B. Com. Honours B. Com

External - 01 October 2014

Resigned on the 1 March 2018

Catherine Motsisi Bachelor of Accounting Science Senior Executive Programme for

Southern Africa

External - 01 September 2016

Current

No of meetings attended

05

02

02

6. AUDIT COMMITTEE REPORT

Report of the Audit Committee – Cluster 02

Gauteng Department of e-Government

We are pleased to present our report for the financial year ended 31 March 2018.

Audit Committee and attendance

The Audit Committee consists of the external Members listed hereunder and is required to meet a minimum of at least two times per annum as per the provisions of the Public Finance Management Act, 1999 (Act Number 1 of 1999) (PFMA). In terms of the approved Terms of Reference (GPG Audit Committee Charter), five meetings were held during the current year, i.e. three meetings to consider the Quarterly Performance Reporting (financial and non-financial) and two meetings to review and discuss the Annual Financial Statements and the Auditor-General of South Africa’s (AGSA) Audit and Management Reports.

Non-Executive members

Name of member Number of meetings attended Mr. Japie du Plessis (Chairperson) 05Ms. Tshidi Molala 02 (Resigned 1 March 2018)Ms. Catherine Motsisi 02

Executive members

In terms of the GPG Audit Committee Charter, officials listed hereunder are obliged to attend meetings of the Audit Committee:


Compulsory attendees Number of meetings attended

Mr. Boy Ngobeni (Accounting Officer) 05Mr. Ntlhane Bopape (Chief Financial Officer) 04Ms. Sempotseng Mmope (Chief Risk Officer) 04Ms. Lorraine Francois (Chief Audit Executive) 01 (Resigned 8 May 2018)Mr. Luthendo Makhadi (Acting Chief Audit Executive) 02 (Appointed 10 May 2018)

The Audit Committee noted that the Accounting Officer attended all five scheduled Audit Committee meetings. Therefore, the Audit Committee is satisfied that the Department adhered to the provisions of the GPG Audit Committee Charter.

The Members of the Audit Committee met with the Senior Management of the Department, Internal Audit and the AGSA, individually and collectively to address risks and challenges facing the Department. A number of in-committee meetings were held to address control weaknesses and deviations within the Department.

Audit Committee responsibility

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

The effectiveness of internal control and Information and Communication Technology (ICT) Governance

The Audit Committee has observed that the overall control environment of the Department has continued to improve during the year under review. Some deficiencies in the system of internal control and deviations were reported in the Internal and AGSA Reports. The overall opinion of Internal Audit on the internal control design at the Department is adequate but ineffective.

The Audit Committee also reviewed the progress with respect to the ICT Governance in line with the ICT Framework issued by the Department of Public Services and Administration. Although there was some progress on the ICT internal control, the Audit Committee report its dissatisfaction with the progress made on the formal control over the IT systems as mentioned in the Management Report of the AGSA. Given the mandate of the Department regarding the provisioning of a common ICT infrastructure, the risks relating to cyber security and ICT continuity across the common ICT platform should be constantly guarded against.

The Department did implement the recommendations made by the Audit Committee.

Internal Audit

Internal Audit was effective during the financial year. The Audit Committee is satisfied that the Internal Audit Plan represents a clear alignment with the key risks, has adequate information systems coverage, and a good balance across the different categories of audits, i.e. risk based, standard/transversal, performance and computer audits. From a resource point of view, Internal Audit needs to be equipped to provide assurance on a greater number of risks.The Audit Committee has noted considerable improvement in the communication between the Executive Management, the AGSA and the Internal Audit Function, which has strengthened the Corporate Governance initiatives within the Department. Combined assurance needs to be implemented within the GPG.

Risk Management

Progress on the departmental risk management was reported to the Audit Committee on a quarterly basis. The Audit Committee is satisfied that the actual management of risk is receiving attention and that its implementation can only improve with continued support from Senior Management. Management should take full responsibility for the entire Enterprise Risk Management process and continue to support the Chief Risk Officer to even further enhance the performance of the Department.

Forensic Investigations

No forensic investigations were requested for the Department during the financial year under review.


6. AUDIT COMMITTEE REPORT

The quality of quarterly reports submitted in terms of the PFMA and the Division of Revenue Act

The Audit Committee is satisfied with the content and quality of financial and non-financial quarterly reports prepared and submitted by the Accounting Officer of the Department during the year under review and confirms that the reports were in compliance with the statutory reporting framework.

Evaluation of the Annual Financial Statements

The Audit Committee has:

• Reviewed and discussed the audited Annual Financial Statements to be included in the Annual Report with the AGSA and the Accounting Officer;• Reviewed the Audit Report of the AGSA;• Reviewed the AGSA’s Management Report and Management’s response thereto; • Reviewed the Department’s compliance with legal and regulatory provisions; and • Reviewed significant adjustments resulting from the audit.

The Audit Committee concurs with and accepts the AGSA’s conclusions on the Annual Financial Statements and is of the opinion that the audited Annual Financial Statements be accepted and read together with the report of the AGSA.

One-on-One meetings with the Accounting Officer

The Audit Committee has met with the Accounting Officer for the Department to address unresolved issues.

One-on-One meetings with the Executive Authority

The Audit Committee has met with the Executive Authority for the Department to apprise the MEC on the performance of the Department.

Auditor-General of South Africa

The Audit Committee has met with the AGSA to ensure that there are no unresolved issues.

Japie du PlessisChairperson of the Audit CommitteeDate: 31 July 2018


PART D: HUMAN RESOURCE OVERSIGHT REPORT

1. LEGISLATION THAT GOVERNS HUMAN RESOURCE MANAGEMENT


The information contained in this part of the annual report has been prescribed by the Minister for the Public Service and Administration for all departments in the public service.

The employees in the Gauteng Department of e-Government are appointed in terms of the Public Service Act, 1999 as amended, read in conjunction with the Public Service Regulations, 2016. The strategic and operational functioning of human resources is governed by at least the following pieces of legislation:

• White Paper on Transforming Public Service Delivery (Batho Pele White Paper);

• Promotion of Access to Information Act, 2000;

• Promotion of Equality and Prevention of Unfair Discrimination Act, 2000;

• Skills Development Act, 1998;

• South African Qualifications Authority Act, 1995;

• Labour Relations Act, 1995, as amended;

• Basic Conditions of Employment Act, 1997;

• Employment Equity Act, 1998; and

• Occupational Health and Safety Act, 1993.

The Human Resources directorate comprises of the following sub units:

• Human Resource Planning and Organisational Development;

• Human Resource Administration;

• Performance Management and Development; and

• Employee Relations and Wellness.

The primary aim of the directorate is to provide efficient and effective administrative and strategic support through proactive targeted needs-based human resource services to all the units in the Department. The functions of human resources are in line with the outputs of Outcome 12 “An efficient, effective and development oriented public service.”

The overview of Human Resources (HR) matters is driven by the Department’s mandate. The Department, through HR commits to provide and retain adequate skills, sound health and wellness practices and Labour peace, to enhance service delivery.

The Department conducted the skills audit during the year under review, with the aim of identifying and building advance skills, competencies and capabilities that are required to fulfil the Department’s strategic goals. The recommendations thereof will be included in the Human Resource Development Plan and the broader Human Resource Plan in accordance with the Workplace Skills Plan. The focus is on occupations across the Department to address training and development gaps in line with allocated budget and skills development legislation. This contributed to a more skilled workforce and improved performance to enable the modernisation of the Gauteng City Region and service delivery.

The year under review was underpinned by the concurrence of the interim organisational structures by the MPSA and approval by the Executive Authority, resulting in the increase of the vacancy rate to 15%. The optimal focus was on the recruitment of core skills and the alignment of the Department’s structure to the strategic plan and service delivery model.

2. INTRODUCTION


The priorities were therefore to create optimal performance of the core business (i.e. ICT) to rightfully capacitate the alignment of the structure in reaching the Department’s objectives.

Change Management is instrumental in inculcating the government’s philosophy on Human Resources to be closer to service delivery points so that contextual issues are considered, in decision making. The Department engaged employee Health and Wellness Programme (EHWP) aiming at psychosocial support in the process of re-organisation as per the interim organisational structure, aimed at achieving the required organisational fit with the service delivery model.

Strategic HR management has it that employee empowerment through delegations of authority is critical for fast-tracked turn-around times in filling posts and other HR related matters.

The Department has aligned its HR delegations to the Public Service Act and Regulations which streamlines current processes and the efficiency around human resource practices. A gradual improvement in the MPAT rating attached to the 8 HR standards as compared to previous year has been achieved.

The following were achieved during the 2017/18 financial year:• The Organisational Interim structure was concurred by the MPSA and approved by the EA;

• The Human Resource Development Implementation Plan and the Monitoring and Evaluation Tool was approved and submitted by 31st of May 2017;

• The Workplace Skills Plan was approved and submitted to the Public Service Sector Education and Training Authority (PSETA) by 30 April 2017;

• Training undertaken was informed by development gaps identified during performance assessments which were captured in the employees’ personal development plans;

• Training and development interventions were undertaken through accredited service providers, including the NSG;

• At least 1% of the training and development budget was spent by the relevant programme managers as a centralised training budget;

• The departmental central bursary budget was allocated to employees informed by the criteria of the departmental bursary policy to improve qualifications at various accredited institutions;

• Skills audit was conducted and the results will be aligned to employees’ personal development plans; and

• The employment equity rate for people with disabilities was met and exceeded which is above the target of 2%.

The following are the challenges faced during the reporting period:

• Critical vacant funded posts could only be filled on finalisation of the implementation of interim structure on PERSAL;

• Women at SMS level constitute less than the prescribed 50% of the filled posts at senior management level; and

• The vacancy rate remained high at 15% which is above the acceptable rate of 10%.

Future Human Resource goals/plans

Finalisation of the e-Government structure that is aligned to the organisation’s mandate to ensure that:

• the Department has sufficient capacity to deliver on its mandate by filling vacant funded posts within the prescribed time frames;

• a representative workforce;

• a vacancy rate of 10% or below, retain staff where required;

• officials attend the Compulsory Induction Programme;

• employees are developed/trained by accredited service providers informed by their personal development plans;

• reduce misconduct and grievances cases and resolving them within the required timeframes and;

• to implement improved employee health and wellness programme that focuses on the holistic wellbeing of employees.


3. HUMAN RESOURCES OVERSIGHT STATISTICS

3.1. Personnel related expenditure

Table 3.1.1. Personnel expenditure by programme for the period 1 April 2017 and 31 March 2018

Table 3.1.2. Personnel costs by salary band for the period 1 April 2017 and 31 March 2018

Table 3.1.3. Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the period 1 April 2017 and 31 March 2018

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 221 327 130 738 3 798 404 59 164

Human Resource Services

103 614

96 563

0

0 93 121

Information Communication Technology (ICT)

1

008 670

136 690

0

0

14

172

TOTAL 1 333 611 363 991 3 798 404 27 458

Salary band Personnel expenditure

(R’000)

% of total personnel cost

No. of employees Average personnel cost per employee (R’000)

Skilled (Levels 3-5) 17 874 4.9 81 220 667

Highly skilled production (Levels 6-8) 130 466 36 359 363 415

Highly skilled supervision (Levels 9-12) 146 368 39.8 233 628 189

Senior management (Levels 13-16) 16 706 4.6 15 1 113 733

Contract (Levels 3-5) 419 0.1 6 69 833

Contract (Levels 6-8) 7 552 2.1 22 343 273

Contract (Levels 9-12) 4 881 1.3 5 976 200

Contract (Levels 13-16) 29 664 8.1 25 1 186 560

Contract Other 1 147 0.3 0 0

Periodical Remuneration 6 172 1.7 2 3 086 000

Abnormal Appointment 2 742 0.8 78 35 154

TOTAL 363 991 99.9 826 458 389

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 a % of personnel costs

Administration 87 176 66.68 1 771 1.35 3 206 2.45 6 068 4.64

Human Resource Services 68 374 70.81 193 0.2 3 302 3.42 5 639 5.84

Information Communication Technology (ICT) 91 372 66.85 172 0.13 2 074 1.52 3 176 2.32

TOTAL 246 922 67.8 2 136 0.59 8 582 2.36 14 883 4.09

Table 3.1.4. Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the period 1 April 2017 and 31 March 2018

Salary band

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 (Levels 3-5) 11 311 62.8 183 1 1 040 5.8 1 849 10.3

Highly skilled production (Levels 6-8)

89 405

68.2

1 493

1.1

4 665

3.6

8 738

6.7

Highly skilled supervision (Levels 9-12)

85 184

58.6

460

0.3

2 479

1.7

3 582

2.5

Senior management (Levels 13-16)

13 327 77.5 0 0 48 0.3 307 1.8

Contract (Levels 3-5) 419 100 0 0 0 0 0 0

Contract (Levels 6-8) 7 350 97.3 0 0 0 0 0 0

Contract (Levels 9-12) 4 426 90.7 0 0 249 5.1 48 1

Contract (Levels 13-16)

25 439

85.7

0

0

101

0.3

359

1.2

Contract Other 1 147 100 0 0 0 0 0 0

Periodical Remuneration

6 172

100

0

0

0

0

0

0

Abnormal Appointment

2 742

100

0

0

0

0

0

0

TOTAL 246 922 67.8 2 136 0.59 8 582 2.36 14 883 4.09


3.2. Employment and Vacancies

Table 3.2.1. Employment and vacancies by programme as on 31 March 2018

Programme Number of posts on approved establishment Number of posts filled

Vacancy Rate

Number of employees additional to the establishment

Administration*

358 298 16.75% 28

Human Resource Services 265

233 12.08% 0

Information Communication Technology (ICT)

255 215 15.69%

0

TOTAL 878 746 15% * 28

*NB: The high vacancy rate is due to the implementation of approved interim structure on PERSAL system, it is anticipated that the vacancy rate will be reduced to 11% on time of printing.

Table 3.2.2. Employment and vacancies by salary band as on 31 March 2018

Table 3.2.3. Employment and vacancies by critical occupations as on 31 March 2018

Salary band Number of posts on

approved establishment Number of posts filled

Vacancy Rate Number of employees

additional to the establishment

107 81 24.3% 0

403

359

10.9%

0

Highly Skilled Supervision (Levels 9-12), Permanent

283

233

17.7%

0

Senior Management (Levels 13-16), Permanent

27

15

44.4%

0

Contract (Levels 3-5), Permanent 6 6 0% 6




TOTAL 878 746 15% 28

Critical occupation Number of posts on




Administrative related, Permanent 47 37 21.3% 0

All artisans in the building metal machinery etc., Permanent

5

5

0%

0

Archivists curators and related professionals, Permanent

2

0

100%

0

Cashiers tellers and related Clerks, Permanent

2

2

0%

0

Client inform clerks (switchboard, Reception, inform clerks), Permanent

9

9

0%

0

Communication and information related, Permanent

5

1

80%

0

Computer programmers, Permanent

14 14 0% 0


Skilled (Levels 3-5), Permanent

Highly Skilled Production (Levels 6-8), Permanent

Table 3.2.3. Employment and vacancies by critical occupations as on 31 March 2018

Computer system designers and analysts, Permanent

81

74

8.6%

0

Finance and economics related, Permanent

47

40

14.9%

0

Financial and related professionals, Permanent

12

12

0%

0

Financial clerks and credit controllers, Permanent

103

90

12.6%

0

Food services aids and waiters, Permanent

4

4

0%

0

Head of department/chief executive officer, Permanent

1

1

0%

0

Human resources & organisational development & related professionals, Permanent

89

77

13.5%

0

Human resources clerks, Permanent 94 88 6.4% 28

Human resources related, Permanent 33 28 15.2% 0

Information technology related, Permanent

33 24 27.3% 0

Language practitioners interpreters& other communication, Permanent

7 6 14.3% 0

Legal related, Permanent 3 1 66.7% 0

Library mail and related clerks, Permanent

48

41

14.6%

0

Logistical support personnel, Permanent

16

14

12.5%

0

Material-recording and transport clerks, Permanent

7

5

28.6%

0

Messengers porters and deliverers, Permanent

5

3

40%

0

Other administration & related clerks and organisers, Permanent

6

6

0%

0

Other administrative policy and related officers, Permanent

1

1

0%

0

Other information technology personnel., Permanent

66

56

15.2%

0

Other occupations, Permanent 3 3 0% 0

Risk management and security services, Permanent

4

4

0%

0

Secretaries & other keyboard operating clerks, Permanent

20

17

15%

0

Security officers, Permanent 68 52 23.5% 0

Senior managers, Permanent 43 31 28.6% 0

TOTAL 878 746 15% 28


Critical occupation Number of posts on




3.3. Filling of SMS Posts

Table 3.3.1. SMS post information as on 31 March 2018


SMS Level

Total number of funded SMS posts

Total number of SMS posts filled

% of SMS posts filled Total number of SMS posts vacant

% of SMS posts vacant

Level 13 36 26 72.22% 10 27.77%

Level 14 7 6 85.71% 1 14.29%

Level 15 2 2 100% 0 0%

Level 16 1 1 100% 0 0%

TOTAL 46 35 76.08% 11 23.91%

Table 3.3.2 SMS post information as on 30 September 2017

Table 3.3.3. Advertising and filling of SMS posts for the period 1 April 2017 and 31 March 2018

Table 3.3.4. Reasons for not having complied with the filling of funded vacant SMS - Advertised within 6 months and filled within 12 months after becoming vacant for the period 1 April 2017 and 31 March 2018

SMS Level

Total number of funded SMS posts

Total number of SMS posts filled

% of SMS posts filled Total number of SMS posts vacant

% of SMS posts vacant

Level 13 34 27 79.41% 7 20.59%

Level 14 7 6 85.71% 1 14.29%

Level 15 2 1 50% 1 50%

Level 16 1 1 100% 0 0%

TOTAL 44 35 79.56% 9 20.45%

SMS Level

Advertising Filling of Posts

Number of vacancies per level advertised in 6 months of becoming vacant

Number of vacancies per level filled in 6 months of becoming vacant

Number of vacancies per level not filled in 6 months but filled in 12 months

Level 13 6 0 6

Level 14 1 1 0

Level 15 1 1 0

TOTAL 8 2 6

Reasons for vacancies not advertised within six months

Redefined positions that had to be job evaluated before they were advertised and filled.

Reasons for vacancies not filled within twelve months

Difficulty in attracting suitable skills within ICT field

Table 3.3.5. Disciplinary steps taken for not complying with the prescribed timeframes for filling SMS posts within 12 months for the period 1 April 2017 and 31 March 2018

Table 3.4.2. Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2017 and 31 March 2018.

The following table provides a summary of the number of employees whose positions were upgraded due to their post being upgraded. The number of employees might differ from the number of posts upgraded since not all employees are automatically absorbed into the new posts and some of the posts upgraded could also be vacant.

Reasons for vacancies not advertised within six months

None

Reasons for vacancies not filled within six months

None

3.4. Job Evaluation

Table 3.4.1. Job Evaluation by Salary band for the period 1 April 2017 and 31 March 2018

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

Skilled (Levels 3-5) 107 80 74.8 11 100 0 0

Highly Skilled Production (Levels 6-8) 403 121 30 0 0 3 100

Highly Skilled Supervision (Levels 9-12) 283 91 32.2 10 100 0 0

Senior Management Service Band A 23 4 17.4 2 100 0 0

Senior Management Service Band B 2 0 0 0 0 0 0

Senior Management Service Band C 2 1 50 0 0 0 0

Contract (Levels 3-5) 6 0 0 0 0 0 0

Contract (Levels 6-8) 22 0 0 0 0 0 0

Contract (Levels 9-12) 5 0 0 0 0 0 0

Contract Band A 15 2 13.3 1 100 0 0

Contract Band B 8 1 12.5 1 100 0 0

Contract Band C 1 0 0 0 0 0 0

Contract Band D 1 0 0 0 0 0 0

TOTAL 878 300 34.2 25 100 3 100


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

Table 3.4.3. Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2017 and 31 March 2018

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

Table 3.4.4. Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2017 and 31 March 2018

Gender African Asian Coloured White Total

Female 0 0 0 0 0

Male 0 0 0 0 0

TOTAL 0 0 0 0 0


Total number of Employees whose salaries exceeded the grades determine by job evaluation None

Occupation Number of employees Job evaluation level Remunerationlevel

Reason for deviation

None 0.00 n/a n/a None

Total number of employees whose salaries exceeded the level determined by job evaluation None

Percentage of total employed n/a

3.5. Employment Changes

The following tables provide a summary of turnover rates by salary band and critical occupations.

Table 3.5.1. Annual turnover rates by salary band for the period 1 April 2017 and 31 March 2018

Salary band Number of employees at beginning of period (1 April 2017)

Appointments and transfers into the department

Terminations and transfers out of the department

Turnover rate

Skilled (Levels 3-5) Permanent 85

3

2

2.4

Highly Skilled Production (Levels 6-8) Permanent 369 23 12 3.3

Highly Skilled Supervision (Levels 9-12) Permanent 186 17 7 3.8

Senior Management Service Band A Permanent

13

0

0

0

Senior Management Service Band B Permanent 1 0 0 0

Other Permanent 36

0

36

100

Contract (Levels 6-8) Permanent 29

23

30

103.4

Contract (Levels 9-12) Permanent 5

0

0

0

Salary band Number of employees at beginning of period (1 April 2017)



Turnover rate

Contract Band A Permanent 17 2 5 29.4

Contract Band B Permanent 8 2 1 12.5

Contract Band C Permanent 1 0 0 0

Contract Band D Permanent 1 0 0 0

TOTAL 751 76 93 12.4

Table 3.5.2. Annual turnover rates by critical occupation for the period 1 April 2017 and 31 March 2018

Critical occupation Number of employees at beginning of periodApril 2017



Turnover rate

Administrative related, Permanent 29 4 1 3.4

All artisans in the building metal machinery etc., Permanent 4 1 0 0

Cashiers tellers and related clerks, Permanent 2 1 0 0

Client inform clerks (switchboard reception inform clerks), Permanent 9 0 0 0

Communication and information related, Permanent 1 0 0 0

Computer programmers, Permanent 14 2 0 0

Computer system designs and analysts, Permanent

60 14 0 0

Finance and economic related, Permanent 40 0 1 2.5

Financial and related professionals, Permanent

11 1 1 9.1

Financial clerks and credit controllers, Permanent

95 0 5 5.3

Food services aids and waiters, Permanent 4 0 0 0

Head of department/chief executive officer, Permanent 1 0 0 0

Human resources & organisational

development &relate profession, Permanent 74 3 2 2.7

Human resources clerks, Permanent 99 29 39 39.4

Human resources related, Permanent 31 1 3 9.7

Information technology related, Permanent 31 3 13 41.9

Language practitioners interpreters & other communication, Permanent 7 0 0 0

Legal related, Permanent 3 0 1 33.3

Library mail and related clerks, Permanent 58 0 17 29.3

Logistical support personnel, Permanent 14 0 0 0

Material-recording and transport clerks, Permanent

5 0 0 0


Table 3.5.1. Annual turnover rates by salary band for the period 1 April 2017 and 31 March 2018

Table 3.5.2. Annual turnover rates by critical occupation for the period 1 April 2017 and 31 March 2018


Messengers porters and deliverers, Permanent 3 0 0 0

Other administrative policy and relatedofficers, Permanent 5 1 0 0

Other information technology personnel, Permanent 47 8 2 4.3

Other occupations, Permanent 3 0 0 0

Risk management and security services, Permanent

3 1 0 0

Secretaries & other keyboard operating clerks, Permanent 14 3 1 7.1

Security officers, Permanent 52 1 2 3.8

Senior managers, Permanent 32 3 5 15.62

TOTAL 751 76 93 12.4

The table below identifies the major reasons why staff left the department. Table 3.5.3. Reasons why staff left the department for the period 1 April 2017 and 31 March 2018

Table 3.5.4. Promotions by critical occupation for the period 1 April 2017 and 31 March 2018

Termination Type Number % of Total Resignations

Death, Permanent 3 3.2

Resignation, Permanent 37 39.8

Expiry of contract, Permanent 48 51.6

Dismissal-misconduct, Permanent 1 1.1

TOTAL 93 100

Total number of employees who left as a % of total employment 4.3%

Occupation Employees (1 April 2017)

Promotions to another salary level

Salary level promotions as a % of employees by occupation

Progressions to another notch within a salary level

Notch progression as a % of employees by occupation

Administrative related 29 6 20.7 22 75.9

All artisans in the building metal machinery, etc.

4

1

25

2

50

Cashiers tellers and related clerks

2

0

0

0

0

Client inform clerks (switchboard reception inform clerks)

9

0

0

5

55.6

Communication and information related

1

0

0

1

100

Computer programmers 14 0 0 10 71.4

Computer system designs and analysts

60

9

15

41

68.3

Critical occupation Number of employees at beginning of periodApril 2017



Turnover rate

Finance and economic related

40

1

2.5

23

57.5

Financial and related professionals

11

1

9.1

9

81.8

Financial clerks and credit controllers

95

3

3.2

73

76.8

Food services aids and waiters

4

0

0

3

75

Head of department/chief executive officer

1

0

0

1

100

Human resources &

organisational development & relate profession

74

3

4.1

58

78.4

Human resources clerks 99 1 1 60 60.6

Human resources related 31 0 0 27 87.1

Information technology related

31

3

9.7

12

38.7

Language practitioners interpreters & other communication

7

0

0

6

85.7

Legal related 3 0 0 1 33.3

Library mail and related clerks

58 0 0 23 39.7

Logistical support personnel 14 0 0 10 71.4

Material-recording and transport clerks

5

0

0

5

100

Messengers porters and deliverers

3

1

33.3

2

66.7

Other administrative policy and related officers

5

1

20

3

60

Other information technology personnel

47

10

21.3

23

48.9

Other occupations 3 0. 0 1 33.3

Risk management and security services

3 0 0 3 100

Secretaries & other key-board operating clerks

14 2 14.3 8 57.1

Security officers 52 0 0 30 57.7

Senior managers 32 1 3.2 15 46.87

TOTAL 751 43 5.7 477 63.5


Occupation Employees (1 April 2017)


Salary level promotions as a % of employees by occupation


Notch progression as a % of employees by occupation




Salary Band Employees1 April 2017


Salary bands promotions as a % of employees by salary level


Notch progression as a % of employees by salary bands

Skilled (Levels 3-5), Permanent

85

1

1.2

53

62.4

Highly Skilled Production (Levels 6-8), Permanent

369

11

3

267

72.4

Highly Skilled Supervision (Levels 9-12), Permanent

186

30

16.1

131

70.4

Senior Management (Levels 13-16), Permanent

14

1

7.1

9

64.3

Other, Permanent 36 0 0 1 2.8

Contract (Levels 6-8), Permanent

29

0

0

0

0


5

0

0

4

80


27

0

0

12

44.4

TOTAL 751 43 5.7 477 63.5

3.6. Employment Equity

Table 3.6.1. Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March 2018

Occupational category

Male Female

Total

African Coloured Indian White African Coloured Indian White

Professionals 111

12

8

12

165

8

6

11

333

Technicians and associate professionals

23

1

1

1

20

1

2

3

52

Labourers and related workers

3

1

0

0

5

0

0

1

10

Service shop and market sales workers

34

0

1

0

21

0

0

0

56

Clerks 85

6

1

2

137

19

2

6

258

Senior officials and managers

14

0

4

4

8

1

1

0

32

Craft and related trade workers

5

0

0

0

0

0

0

0

5

TOTAL 275 20 15 19 356 29 11 21 746

Employees with disabilities

9

0

1

0

18

0

0

2

30

Table 3.6.2. Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2018

Table 3.6.3. Recruitment for the period 1 April 2017 to 31 March 2018

Occupational band Male Female Total


Top Management, Permanent 0 0 0 0 1 0 0 0 1

Senior Management, Permanent 3 2 3 4 0 2 0 0 14

Professionally qualified and experienced specialists and mid-management, Permanent 91 8 7 11 92 5 6 13 233

Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 110 10 3 2 200 22 4 8 359

Semi-skilled and discretionary decision making, Permanent 43 0 0 0 38 0 0 0 81

Contract (Top Management), Permanent 1 0 0 1 0 0 0 0 2

Contract (Senior Management), Permanent 10 0 2 1 9 0 1 0 23

Contract (Professionally Qualified), Permanent 3 0 0 0 0 0 0 0 5

Contract (Skilled Technical), Permanent 12 0 0 0 10 0 0 0 22

Contract (Semi-Skilled), Permanent 2 0 0 0 4 0 0 0 6

TOTAL 275 20 15 19 356 29 11 21 746

Occupational band

Male

Female

Total

African

Coloured

Indian

White

African

Coloured

Indian

White

Professionally qualified and experienced specialists and mid-management, Permanent

9

0

0

0

8

0

0

0

17


Table 3.6.3. Recruitment for the period 1 April 2017 to 31 March 2018

Table 3.6.4. Promotions for the period 1 April 2017 and 31 March 2018





Contract (Skilled technical), Permanent 13 0 0 0 10 0 0 0 23

Contract (Semi-skilled), Permanent 2 0 0 0 4 0 0 0 6

TOTAL 34 0 0 0 42 0 0 0 76

Occupational band Male Female Total


Senior Management, Permanent 5 1 0 3 0 1 0 0 10

Professionally qualified and experienced specialists and mid-management, Permanent 59 6 7 6 67 2 5 9 161



Not Available, Permanent 0 0 0 0 1 0 0 0 1


Contract (Professionally qualified), Permanent 2 0 0 0 2 0 0 0 4

TOTAL

178

16

8

12

256

23

9

18

520

Employees with disabilities 9 0 0 0 14 0 0 2 25

Occupational band

Male

Female

Total

African

Coloured

Indian

White

African

Coloured

Indian

White

TOTAL 55 1 1 0 87 1 00 145

Table 3.6.5. Terminations for the period 1 April 2017 and 31 March 2018

Table 3.6.6. Disciplinary action for the period 1 April 2017 and 31 March 2018

Table 3.6.7. Skills development for the period 1 April 2017 and 31 March 2018

Occupational band Male Female

Total


Professionally qualified and experienced specialists and mid-management, Permanent

5 0 0 0 2 0 0 0 7



Not Available, Permanent 18 0 0 0 18 0 0 0 36


Contract (Skilled technical), Permanent 12 0 0 0 18 0 0 0 30

TOTAL 39 1 0 0 50 1 0 2 93

Employees with disabilities 1 0 0 0 0 0 0 0 1

Disciplinary action Male Female

Total


Sexual harassment 1 0 0 0 0 0 0 0 1

Absenteeism 0 0 0 0 1 1 0 0 2

Unprofessional Conduct 1 0 0 0 0 0 0 0 1

Insubordination 0 0 0 0 0 0 0 1 1

Negligence 0 0 0 0 2 0 0 0 2

TOTAL 2 0 0 0 3 1 0 1 7

Legislators, Senior Officials and Managers 11 1 1 0 15 1 0 0 29

Professionals 28 0 0 0 47 0 0 0 75

Technicians and Associate Professionals 1 0 0 0 7 0 0 0 8

Clerks 2 0 0 0 2 0 0 0 4

Service and Sales Workers 0 0 0 0 0 0 0 0 0


Male Female

Total

African

Coloured

Indian

White

African

Coloured

Indian

White



SMS Level Total number of funded SMS posts

Total number of SMS members

Total number of signed performance agreements

Signed performance agreements as % of total number of SMS members

Level 13 34 25 24 96%

Level 14 7 7 7 100%

Level 15 2 1 1 100%

Level 16 1 1 1 100%

TOTAL 44 34 33 97%

3.7. Signing of Performance Agreements by SMS Members

Table 3.7.1. Signing of Performance Agreements by SMS members as on 31 May 2017

Table 3.7.2. Reasons for not having concluded Performance agreements for all SMS members as on 31 March 2018

Table 3.7.3. Disciplinary steps taken against SMS members for not having concluded Performance agreements as on 31 March 2018

Reasons

One (1) SMS member was on suspension.

Reasons

None

3.8. Performance Rewards

To encourage good performance, the department has granted the following performance rewards during the year under

review. The information is presented in terms of race, gender, disability, salary bands and critical occupations.

Table 3.8.1. Performance Rewards by race, gender and disability for the period 1 April 2017 and 31 March 2018

Race and Gender

Beneficiary Profile Cost

Number of beneficiaries

Number of employees

% of total within group

Cost (R’000) Average cost per employee

African

Female 183

338

54.1

3 100.61

16 943

Male 135

266

50.8

2 405.7

17 820

Asian

Female 5

11

45.5

87.63

17 525

Male 9

14

64.3

190.47

21 164

Coloured

Female 19

29

65.5

363.4

19 127

Male 16

20

80

350.58

21 911

White

Female 16 19 84.2 298.71 18 670

Male 11 19 57.9 300.69 27 335

Employees with a disability 17 30 56.7 241.31 14 195

TOTAL 411 746 55.1 7 339.1 17 857

Table 3.8.2. Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2017 and 31 March 2018

Table 3.8.3. Performance Rewards by critical occupation for the period 1 April 2017 and 31 March 2018

Salary band



Number of employees

% of total within salary bands

Total Cost (R’000)

Average cost per employee

55 81 67.9 503.63 9 157

198 359 55.2 2 913.05 14 712

138 233 59.2 2 760.25 20 002

0 6 0 0 0

0 22 0 0 0

2 5 40 44.89 22 446

TOTAL 393 706 55.7 6 221.82 15 832

Critical occupation



Number of employees

% of total within occupation

Total Cost (R’000) Average cost per employee

Financial clerks and credit controllers 50 90 55.6 670.27 13 405

Human resources clerks 38 88 43.2 526.14 13 846

Security officers 36 52 69.2 312.1 8 669

Human resources & organisational development & relate professional

43 77 55.8 745.34 17 334

Messengers porters and deliverers

3 3 100 27.52 9 172

All artisans in the building metal machinery etc. 3 5 60 39.09 13 030

Risk management and security services

3 4 75 43.44 14 481

Finance and economics related 29 40 72.5 615.63 21 229

Logistical support personnel 11 14 78.6 158.92 14 448

Skilled (Levels 3-5)

Highly Skilled Production (Levels 6-8)

Highly Skilled Supervision (Levels 9-12)





Race and Gender



Number of employees

% of total within group

Cost (R’000) Average cost per employee

Table 3.8.1. Performance Rewards by race, gender and disability for the period 1 April 2017 and 31 March 2018

Table 3.8.3. Performance Rewards by critical occupation for the period 1 April 2017 and 31 March 2018


Other administration & related clerks and organisers 4 6 66.7 55.38 13 845

Other occupations 2 3 66.7 105.02 52 510

Legal related 1 1 100 26.16 26 159

Financial and related professionals

11 12 91.7 251.85 22 895

Administrative related 25 37 67.6 595.32 23 813

Communication and information related 1 1 100 16.79 16 794

Secretaries & other keyboard operating clerks 9 17 52.9 127.87 14 208

Library mail and related clerks 10

41

24.4

135.1

13 510

Human resources related 21

28

75

391.9

18 662

Cashiers tellers and related clerks 0

2

0

0

0

Head of department/chief executive officer 1 2 50 100.56 100 564

Computer programmers 8

14

57.1

161.05

20 131

Language practitioners interpreters & other communication 7 6

116.7 119.25 17 036

Material-recording and transport clerks 5 5 100 55.01 11 002

Other administrative policy and related officers 0 1 0 0 0

Senior managers 6 30 20 475.43 79 238

Client inform clerks (switchboard receptionist inform clerks) 5 9 55.6 47.49 9 498

Computer system designers and analysts. 35 74 47.3 680.23 19 435

Other information technology personnel. 28 56 50 526.71 18 811

Food services aids and waiters 3 4 75 39.2 13 068

Information technology related 13 24 54.2 290.31 22 332

TOTAL 411 746 55.1 7 339.1 17 857

Critical occupation



Number of employees

% of total within occupation

Total Cost (R’000) Average cost per employee

Table 3.8.4. Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2017 and 31 March 2018

Salary band

Beneficiary Profile Cost Total cost as a % of the total personnel expenditure


Number of employees

% of total within salary bands

Total Cost (R’000)

Average cost per employee

Band A 15 28 53.6 807.96 53 863.9 31 729.14

Band B 3 9 33.3 309.33 103 109.2 10 558.74

Band C 0 2 0 0 0 2 371.66

Band D 0 1 0 0 0 2 215.5

TOTAL 18 40 45 1 117.29 62 071.4 46 875.04

3.9. Foreign Workers

Table 3.9.1. Foreign workers by salary band for the period 1 April 2017 and 31 March 2018

3.10. Leave utilisation

Table 3.10.1. Sick leave for the period 1 January 2017 to 31 December 2017

Table 3.9.2. Foreign workers by major occupation for the period 1 April 2017 and 31 March 2018

Salary band 01 April 2017 31 March 2018 Change

Number % of total Number % of total Number % Change

TOTAL

0

0

0

0

0

0

Major occupation 01 April 2017 31 March 2018 Change

Number % of total Number % of total Number % Change

TOTAL 0 0 0 0 0 0

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)

107 78.5 17 2.5 6 423

100 62 24 3.5 4 100

49 81.6 7 1 7 145

51 62.7 18 2.6 3 16

3 037 79 340 49.6 9 4 010

1 515 79.6 203 29.6 7 3 790

86 79.1 15 2.2 6 321

424 81.6 61 8.9 7 306

TOTAL 5 369 78.9 685 100 8 9 111




Contract Other

Highly skilled production (Levels 6-8)Highly skilled supervision (Levels 9-12)Senior management (Levels 13-16)



Table 3.10.2. Disability leave (temporary and permanent) for the period 1 January 2017 to 31 December 2017

Salary band

Total days

% Days with Medical certification

Number of Employees using disability leave

% of total employees using disability leave

Average days per employee

Estimated Cost (R’000)

Contract (Levels 9-12) 137 0 1 0 137 395


226 96.9 16 72.7 14 278


4 100 1 4.5 4 8

Senior management (Levels 13-16) 6 0 1 0 6 22

Skilled (Levels 3-5) 101 100 3 13.6 34 78

TOTAL 474 68.4 22 100 22 780

The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in

2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of

service.

Table 3.10.3. Annual Leave for the period 1 January 2017 to 31 December 2017

Table 3.10.4 Capped leave for the period 1 January 2017 to 31 December 2017

Salary band

Total days taken

Average per employee Number of Employees using

annual leave

466 15 31

20 3 6

375 7 51

137 12 11

382 8 47

9 238 23 396

5 297 22 243

290 15 20

1 718 20 86

TOTAL 17 923 20 891

Salary band

Total days of capped

leave taken Number of Employees using capped leave

Average number of days taken per employee

Average capped leave per employee as at 31 December 2017

0 0 0 53

0 0 0 0

0 0 0 0

0 0 0 0

63 4 16 21






Contract Other



Senior management (Levels 13-16)







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

Table 3.10.5. Leave pay-outs for the period 1 April 2017 and 31 March 2018

Table 3.10.4 Capped leave for the period 1 January 2017 to 31 December 2017

Highly skilled supervision (Levels 9-12) 9 3 3 35

Senior management (Levels 13-16) 0 0 0 44

Skilled (Levels 3-5) 0 0 0 0

TOTAL 72 7 10 29

Reason

Total amount (R’000)

Number of employees

Average per employee (R’000)

Capped leave pay-outs on termination of service for current financial year 643 19 33 842

Current leave pay-out on termination of service for current financial year 266 5 53 200

TOTAL 909 24 37 875

3.11. HIV/AIDS & Health Promotion Programmes

Table 3.11.1. Steps taken to reduce the risk of occupational exposure

Table 3.11.2. Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and provide the required information)

Units/categories of employees identified to be at high risk of contracting HIV & related diseases (if any)

Key steps taken to reduce the risk

Employees who are misinformed about how HIV is transmitted Employees who have multiple partners and who are not using

Employees who have no access to femidoms and condoms

Individuals that show dependency on substance abuse

protection

Prevent new infections through condom distribution and organising wellness days where voluntary testing takes place.

Provide support to the infected and affected by offering counselling services through the appointed service provider, Careways

Creating awareness by educating staff through training interventions

Question Yes No Details, if yes

X

X

1. Has the department designated a member of the SMS to implement the provisions contained in Regulation 55 Paragraph 6 (c) of the Public Service Regulations, 2016? If so, provide her/his name and position.

Bulelwa Buthelezi: Director- Human and Physical ResourceManagement

4 Employees are designated to promote health and wellness within the department

2. Does the department have a dedicated unit or have you designated specific staff members to promote health and wellbeing of your employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available.


Salary band

Total days of capped

leave taken Number of Employees using capped leave

Average number of days taken per employee

Average capped leave per employee as at 31 December 2017

Table 3.11.2. Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and provide the required information)

X

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

4. Has the department established (a) committee(s) as contemplated in Regulation 55 Paragraph 6 (d) of the Public Service Regulations, 2016? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent.

5. Has the department reviewed the employment policies and practices of your department 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.

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.

7. Does the department encourage its employees to undergo Voluntary Counselling and Testing? If so, list the results that you have achieved.

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

HIV/AIDS Management Policy and awareness sessions on the Policy on handling disclosure

Even though it is encouraged that employees go for testing, these services were not rendered in the previous financial year

Careways Groups

Counselling (one on one, telephone, family

Financial and Legal advice 1 Onsite and external therapeutic services for employees and their immediate family members.


X

X The following EHWP policies were approved:

• Health and Productivity Management

• Wellness Management

• SHERQ (OHS) Management

• HIV/AIDS, TB & STIs Management

• Gym Policy

• Substance Abuse Policy

• Sport and Recreation Policy

• OHS Policy

X

X

X

3.12. Labour Relations

Table 3.12.1. Collective agreements for the period 1 April 2017 and 31 March 2018

Total number of Collective agreements None

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

Table 3.12.2. Misconduct and disciplinary hearings finalised for the period 1 April 2017 and 31 March 2018

Outcomes of disciplinary hearings Number % of total

Verbal Warning 1 16, 6 %

Written Warning 2 33,3 %

Question Yes No Details, if yes

Final Written Warning 1 16, 6 %

Dismissal 1 16,6 %

Counselling 1 16,6 %

TOTAL 7 100%

Type of misconduct Number % of total

Sexual Harassment 1 14,2 %

Absenteeism 2 28,5 %

Unprofessional Conduct 1 14,2 %

Table 3.12.3. Types of misconduct addressed at disciplinary hearings for the period 1 April 2017 and 31 March 2018

Table 3.12.4. Grievances logged for the period 1 April 2017 and 31 March 2018

Table 3.12.5. Disputes logged with Councils for the period 1 April 2017 and 31 March 2018

Table 3.12.6. Strike actions for the period 1 April 2017 and 31 March 2018

Table 3.12.7. Precautionary suspensions for the period 1 April 2017 and 31 March 2018

Insubordination 1 14,2 %

Negligence 2 28,5 %

TOTAL 7 100%

Grievances Number % of Total

Number of grievances resolved

12

63%

Number of grievances not resolved

7

37%

Total number of grievances lodged 19 100%

Disputes Number % of Total

Number of disputes upheld 3 75%

Number of disputes dismissed 1 25%

Total number of disputes lodged 4 100%

Total number of persons working days lost 0

Total costs working days lost 0

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

Number of people suspended 0

Number of people who’s suspension exceeded 30 days 0

Average number of days suspended 0

Cost of suspension(R’000) 0


Outcomes of disciplinary hearings Number % of total

Table 3.12.2. Misconduct and disciplinary hearings finalised for the period 1 April 2017 and 31 March 2018


3.13. Skills development

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

Table 3.13.1. Training needs identified for the period 1 April 2017 and 31 March 2018


Gender

Number of employees as at 1 April 2017

Training needs identified at start of the reporting period

Learnerships

Skills Programmes & other short courses

Other forms of training

Total

Legislators, senior officials and managers

Female

12

0

17

0

17

Male

20

0

6

0

6

Professionals

Female

169

0

47

0

47

Male

134

0

70

0

70

Technicians and associate professional

Female

23

0

35

0

35

Male

20

0

25

0

25

Clerks

Female

159

0

34

0

34

Male

89

0

26

0

26

Service and sales workers

Female

20

0

10

0

10

Male

36

0

14

0

14

Skilled agriculture and fishery workers

Female

0

0

0 0

0

Male

0

0 0

0

0

Craft and related trades workers

Female

0

0

0 0

0

Male

4

0

0 0

0

Plant and machine operators and assemblers

Female

0

0

0

0

0

Male

0

0

0

0

0

Elementary occupations

Female

0

0

0

0

0

Male

0

0

0

0

0

Gender sub totals

Female

383

0

187

0

187

Male

303

0

141

0 141

TOTAL 686 0 328 0 328

Table 3.13.2. Training provided for the period 1 April 2017 and 31 March 2018


Legislators, senior officials and managers

Gender

Number of employees as at 1 April 2017

Training provided within the reporting period

Learnerships

Skills Programmes & other short courses

Other forms of training

Total

Female 12 0 16 0 16

Male 20 0 13 0 13

Professionals

Female 169 0 38 0 38

Male 134 0 37 0 37

Technicians and associate professional

Female 23 0 7 0 7

Male 20 0 1 0 1

Clerks

Female 159 0 2 0 2

Male 89 0 2 0 2

Service and sales workers

Female 20 0 0 0 0

Male 36 0 0 0 0

Female 0 0 0 0 0

Skilled agriculture and fishery workers

Male 0 0

0

0 0

Craft and related trades workers

Female 0 0 0 0 0

Male 4 0 0 0 0

Plant and machine operators and assemblers

Female 0 0 0 0 0

Male 0 0 0 0 0

Elementary occupations

Female 0 0 16 0 16

Male 0 0 13 0 13

Gender sub totals

Female 383 0 79 0 79

Male 303 0 66 0 66

TOTAL 686 0 145 0 145

3.14. Injury on duty

The following tables provide basic information on injury on duty.

Table 3.14.1. Injury on duty for the period 1 April 2017 and 31 March 2018

Nature of injury on duty Number % of total

Required basic medical attention only 17 100%

Temporary Total Disablement 0 0%

Permanent Disablement 0 0%

Fatal 0 0%

TOTAL 17 100%



3.15. Utilisation of Consultants

Table 3.15.1. Report on consultant appointments using appropriated funds for the period 1 April 2017 and 31 March 2018

Table 3.15.2. Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2017 and 31 March 2018

Project title

Total number of consultants that worked on project

Duration

(work days) Contract value in Rand

Professional Services

Total

67

67

68

68

13 126 765.81

13 126 765.81

Total number of projects

Total individual consultants

Total duration

Work days Total contract value in Rand

25 67 68 13 126 765.81

Project title

Percentage ownership by HDI groups Percentage manage-

ment by HDI groups Number of consultants from HDI groups that work on the project

Professional Services 75.56 76.95 65

PART E:FINANCIAL INFORMATION

ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2018

Auditor General’s Report........................................................................................ 76

Appropriation Statement....................................................................................... 80

Notes to the Appropriation Statement................................................................... 100

Statement of Financial Performance...................................................................... 101

Statement of Financial Position............................................................................. 102

Statement of Changes in Net Assets..................................................................... 102

Cash Flow Statement............................................................................................ 103

Notes to the Annual Financial Statements (including Accounting policies).............. 104

Annexures............................................................................................................. 132

TABLE OF CONTENTS


REPORT OF THE AUDITOR-GENERAL TO PROVINCIAL LEGISLATURE ON VOTE NO. 13: GAUTENG DEPARTMENT OF E-GOVERNMENT

Report on the audit of the financial statements

Opinion 1. I have audited the financial statements of the Gauteng Department of e-Government set out on pages 78 to 100,

which comprise the appropriation statement, the statement of financial position as at 31 March 2018, the statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies.

2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Gauteng Department of e-Government as at 31 March 2018, and its financial performance and cash flows for the year then ended in accordance with Modified Cash standard (MCS) prescribed by the National Treasury and the requirements of the Public Finance Management, 1999 (Act 1 of 1999) (PFMA) and the Division of Revenue Act of South Africa, 2017 (Act No. 3 of 2017) (Dora).

Basis for opinion3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under

those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of this auditor’s report.

4. I am independent of the department in accordance with the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants (IESBA code) and the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code.

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

Responsibilities of the accounting officer for the financial statements6. The accounting officer is responsible for the preparation and fair presentation of the financial statements in

accordance with the MCS as prescribed by National Treasury, the requirements of the PFMA and Dora, and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

7. In preparing the financial statements, the accounting officer is responsible for assessing the Gauteng Department e-Government’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the accounting officer either intends to liquidate the department or to cease operations, or has no realistic alternative but to do so.

8. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

9. A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report.


Introduction and scope 10. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice

issued in terms thereof, I have a responsibility to report material findings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.

11. My procedures address the reported performance information, which must be based on the approved performance planning documents of the department. I have not evaluated the completeness and appropriateness of the performance indicators/ measures included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters.

12. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected programme presented in the annual performance report of the department for the year ended 31 March 2018:

13. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

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

Other matter15. I draw attention to the matter below.

Achievement of planned targets16. Refer to the annual performance report on pages 25 to 39 for information on the achievement of planned targets

for the year and explanations provided for the under/ over achievement of a number of targets

Introduction and scope17. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material

findings on the compliance of the department with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.

18. I did not raise material findings on compliance with the specific matters in key legislation set out in the general notice issued in terms of the PAA.

Programme Pages in the annual performance report

Programme 2 – Information Communication Technology Shared Services

28 – 37



Report on the audit of the annual performance report

Report on the audit of compliance with legislation

19. The accounting officer is responsible for the other information. The other information comprises the information included in the annual report. The other information does not include the financial statements, the auditor’s report and those selected programmes presented in the annual performance report that have been specifically reported in this auditor’s report.

20. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.

21. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programme presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

22. I did not receive the other information prior to the date of this auditor’s report. After I receive and read this information, and if I conclude that there is a material misstatement, I am required to communicate the matter to those charged with governance and request that the other information be corrected. If the other information is not corrected, I may have to retract this auditor’s report and re-issue an amended report as appropriate. However, if it is corrected this will not be necessary.

23. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance on it. I did not identify any significant deficiencies in internal control.

Johannesburg31 July 2018


Other information


Internal control deficiencies



Annexure – Auditor-general’s responsibility for the audit

1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements, and the procedures performed on reported performance information for selected programme and on the department’s compliance with respect to the selected subject matters.

Financial statements2. In addition to my responsibility for the audit of the financial statements as described in this auditor’s report, I also:

• identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the department’s internal control

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the accounting officer.

• conclude on the appropriateness of the accounting officer’s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Gauteng Department of e-Government ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of this auditor’s report. However, future events or conditions may cause a department to cease continuing as a going concern

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation

Communication with those charged with governance3. I communicate with the accounting officer regarding, among other matters, the planned scope and timing of the

audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

4. I also confirm to the accounting officer that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and, where applicable, related safeguards

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GAUTENG DEPARTMENT OF e-GOVERNMENTVOTE 13NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 2018

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 1C and 1G to the Annual Financial Statements.

2. Detail of specifically and exclusively appropriated amounts voted (after Virement): Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.

3. Detail on payments for financial assets Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual Financial Statements.

4. Explanations of material variances from Amounts Voted (after Virement):

4.1. Per programmeFinal

AppropriationR’000

Actual Expenditure

R’000

Variance

R’000

Variance as a % of Final

Appropriation1. Administration 228 122 221 327 6 795 3%2. ICT Shared Services 1 126 860 1 008 670 118 190 10%3. Human Resource Services 106 077 103 614 2 463 2%Total 1 461 059 1 333 611 127 448 8.7%

4.2. Per economic classification Final

AppropriationActual

ExpenditureVariance Variance as a

% of Final Appropriation

R’000 R’000 R’000 %Current paymentsCompensation of employees 368 881 363 991 4 890 1%Goods and services 1 009 905 887 363 122 542 12%

Transfers and subsidiesHigher education institutions 22 800 22 800 - 0%Households 750 750 - 0%

Payments for capital assetsBuildings and other fixed structures 32 757 32 757 - 0%Machinery and equipment 15 351 15 335 16 0%Intangible assets 10 567 10 567 - 0%

Payments for financial assets 48 48 - 0%Total 1 461 059 1 333 611 127 448 8.7%

Explanation of variance:

1. Compensation of employees - Underspending is as a result of funded vacant posts.2. Goods and services - Underspending is mainly due to Gauteng Broadband Network phase 2 of which SITA is busy with the procurement process - E-services application mobility and connectivity LAN: the supply chain management process has been initiated and could not be finalised before the end of the financial year.


Note 2017/18 2016/17R'000 R'000

REVENUEAnnual appropriation 1 1 461 059 1 263 186Departmental revenue 2 1 120 556

TOTAL REVENUE 1 462 179 1 263 742

EXPENDITURECurrent expenditureCompensation of employees 3 363 992 310 087Goods and services 4 887 362 684 617Total current expenditure 1 251 354 994 704

Transfers and subsidiesTransfers and subsidies 6 23 550 23 165Total transfers and subsidies 23 550 23 165

Expenditure for capital assetsTangible assets 7 48 092 191 918Intangible assets 7 10 567 27 571Total expenditure for capital assets 58 659 219 489

Payments for financial assets 5 48 20

TOTAL EXPENDITURE 1 333 611 1 237 378

SURPLUS FOR THE YEAR 128 568 26 364

Reconciliation of Net Surplus for the yearVoted funds 127 448 25 808Annual appropriation 127 448 25 808Departmental revenue 2 1 120 556SURPLUS FOR THE YEAR 128 568 26 364


STATEMENT OF THE FINANCIAL PERFORMANCEfor the year ended 31 March 2018

GAUTENG DEPARTMENT OF e-GOVERNMENTVOTE 13

Note 2017/18 2016/17R'000 R'000

ASSETS

Current assets 129 995 26 381Cash and cash equivalents 8 126 887 25 772Prepayments and advances 9 60 50Receivables 10 3 048 559 TOTAL ASSETS 129 995 26 381

LIABILITIES

Current liabilities 129 746 26 125Voted funds to be surrendered to the Revenue Fund 11 127 448 25 808Departmental revenue to be surrendered to the Revenue Fund

12 49 66

Payables 13 2 249 251 TOTAL LIABILITIES 129 746 26 125

NET ASSETS 249 256

Represented by:Recoverable revenue 249 256

TOTAL 249 256

Note 2017/18 2016/17R'000 R'000

Recoverable revenueOpening balance 256 251Transfers: (7) 5Irrecoverable amounts written off 5.1 (13) (15)Debts revised (12) -Debts recovered (included in departmental receipts)

(392) (28)

Debts raised 410 48

TOTAL 249 256

STATEMENT OF THE FINANCIAL POSITIONfor the year ended 31 March 2018

STATEMENT OF CHANGES IN NET ASSESTSfor the year ended 31 March 2018




Note 2017/18 2016/17R'000 R’000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 1 462 179 1 263 732Annual appropriated funds received 1.1 1 461 059 1 263 186Departmental revenue received 2 1 111 536Interest received 2.2 9 10

Increase in working capital (501) (5 900)Surrendered to Revenue Fund (26 945) (23 467)Current payments (1 251 354) (994 704)Payments for financial assets (48) (20)Transfers and subsidies paid (23 550) (23 165)Net cash flow available from operating activities 14 159 781 216 476

CASH FLOWS FROM INVESTING ACTIVITIESPayments for capital assets 7 (58 659) (219 489)Proceeds from sale of capital assets 2.3 - 10Net cash flows from investing activities (58 659) (219 479)

CASH FLOWS FROM FINANCING ACTIVITIES

Increase/(decrease) in net assets (7) 5Net cash flows from financing activities (7) 5

Net increase/(decrease) in cash and cash equivalents 101 115 (2 998)

Cash and cash equivalents at beginning of period 25 772 28 770Cash and cash equivalents at end of period 8 126 887 25 772


CASH FLOW STATEMENTfor the year ended 31 March 2018


GAUTENG DEPARTMENT OF e-GOVERNMENTVOTE 13NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2018

PART A: ACCOUNTING POLICIES

Summary of significant accounting policies The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. Management has concluded that the financial statements present fairly the department’s primary and secondary information. The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation.Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the financial statements and to comply with the statutory requirements of the Public Finance Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act.

1 Basis of preparation The financial statements have been prepared in accordance with the Modified Cash Standard.

2 Going concernThe 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 Rands using the spot exchange rates prevailing at the date of payment / receipt.

6 Comparative information

6.1 Prior period comparative information Prior period comparative information has been presented in the current year’s financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format of the current year’s financial statements.

6.2 Current year comparison with budget A comparison between the approved, final budget and actual amounts for each programme and economic classification is included in the appropriation statement.


Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation).Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the statement of financial performance on the date the adjustments become effective.The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognised as a payable / receivable in the statement of financial position.

7.2 Departmental revenue Departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the relevant revenue fund, unless stated otherwise.Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the statement of financial position.

7.3 Accrued departmental revenue Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the financial statements when:• it is probable that the economic benefits or service potential associated with the

transaction will flow to the department; and• the amount of revenue can be measured reliably.The accrued revenue is measured at the fair value of the consideration receivable.Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents.Write-offs are made according to the department’s debt write-off policy

8 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.

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.

8.2 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.

7 Revenue

7.1 Appropriated funds



Accruals and payables not recognised are recorded in the notes to the financial statements at cost at the reporting date.

8.4 Leases

8.4.1 Operating 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; or• the sum of the minimum lease payments made, including any payments made to acquire

ownership at the end of the lease term, excluding interest.

9 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 as a current liability.For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.

10 Prepayments and 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.

11 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. Write-offs are made according to the department’s write-off policy.

12 Financial assets

12.1 Financial assets (not covered elsewhere)A financial asset is recognised initially at its cost plus transaction costs that are directly attributable to the acquisition or issue of the financial asset.At the reporting date, a department shall measure its financial assets at cost, less amounts

8.3 Accruals and payables not recognised

already settled or written-off, except for recognised loans and receivables, which are mea-sured at cost plus accrued interest, where interest is charged, less amounts already settled or written-off.



when the department commences the development phase of the project.Where the cost of intangible assets cannot be determined reliably, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1.All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.

12.2 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.

13 PayablesPayables recognised in the statement of financial position are recognised at cost.

14 Capital Assets

14.1 Immovable capital assetsImmovable assets reflected in the asset register of the department are recorded in the notes to the financial statements at cost or fair value where the cost cannot be determined reliably. Immovable assets acquired in a non-exchange transaction are recorded at fair value at the date of acquisition. Immovable assets are subsequently carried in the asset register at costand are not currently subject to depreciation or impairment.Subsequent expenditure of a capital nature forms part of the cost of the existing asset when ready for use.Additional information on immovable assets not reflected in the assets register is provided in the notes to financial statements.

14.2 Movable capital assetsMovable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition. Where the cost of movable capital assets cannot be determined reliably, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.Biological assets are subsequently carried at fair value.Subsequent expenditure that is of a capital nature forms part of the cost of the existing assetwhen ready for use.

14.3 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



Subsequent expenditure of a capital nature forms part of the cost of the existing asset when ready for use.

when the department commences the development phase of the project.Where the cost of intangible assets cannot be determined reliably, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1.All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.

14.4 Project Costs: Work-in-progressExpenditure of a capital nature is initially recognised in the statement of financial performanceat cost when paid.Amounts paid towards capital projects are separated from the amounts recognised and accumulated in work-in-progress until the underlying asset is ready for use. Once ready for use, the total accumulated payments are recorded in an asset register. Subsequent payments to complete the project are added to the capital asset in the asset register. Where the department is not the custodian of the completed project asset, the asset istransferred to the custodian subsequent to completion.

15 Provisions and Contingents

15.1 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.

15.2 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.

15.3 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.

15.4

16

Commitments Commitments (other than for transfers and subsidies) are recorded at cost in the notes to the financial statements when there is a contractual arrangement or an approval by management in a manner that raises a valid expectation that the department will discharge its respon-sibilities thereby incurring future expenditure that will result in the outflow of cash.

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; or• approved by Parliament or the Provincial Legislature without funding and is written off against the appropriation in the statement of financial performance; or• transferred to receivables for recovery.Unauthorised expenditure is measured at the amount of the confirmed unauthorised expen-diture.


Subsequent expenditure of a capital nature forms part of the cost of the existing asset when ready for use.


shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.

17 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.

18 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.

19 Changes in accounting policies, accounting estimates and errorsChanges in accounting policies that are effected by management have been applied retrospectively in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the change in policy. In such instances the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.Changes in accounting estimates are applied prospectively in accordance with MCS requirements.Correction of errors is applied retrospectively in the period in which the error has occurred in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the error. In such cases the department

20 Events after the reporting dateEvents after the reporting date that are classified as adjusting events have been accounted for in the financial statements. The events after the reporting date that are classified as non-adjusting events after the reporting date have been disclosed in the notes to the financial statements.

21 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.



22 Related party transactionsA related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party. Related party transactions within the Minister/MEC’s portfolio are recorded in the notes to the financial statements when the transaction is not at arm’s length. Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the department. The number of individuals and their full compensation is recorded in the notes to the financial statements.

23 Employee benefitsThe value of each major class of employee benefit obligation (accruals, payables not recognised and provisions) is disclosed in the Employee benefits note.



PART B: EXPLANATORY NOTES

1. Annual Appropriation 1.1 Annual Appropriation

Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds) and Provincial Departments:

2. Departmental revenue Note 2017/18 2016/17

R’000 R’000Sales of goods and services other than capital assets

2.1 529 507

Interest, dividends and rent on land 2.2 9 10Sales of capital assets 2.3 - 10Transactions in financial assets and liabilities** 2.4 582 29Departmental revenue collected 1 120 556

**Transaction in financial assets and liabilities is in respect of departmental debts recoveries.

2.1 Sales of goods and services other than capital assetsNote 2017/18 2016/17

2

R’000 R’000Sales of goods and services produced by the department

529

Sales by market establishment 529

Total 529 507

2017/18 2016/17Programme Final

AppropriationActual Funds

Received

Funds not

requested/not

received

Final Appropriation

Appropriation received

R’000 R’000 R’000 R’000 R’0001. Administration 228 122 228 122 - 183 898 183 8982. (ICT) Shared Services 1 126 860 1 126 860 - 968 733 968 7333. Human Resource

Services106 077 106 077 - 110 555 110 555

Total 1 461 059 1 461 059 - 1 263 186 1 263 186

507

507



Note 2017/18 2016/17R’000 R’000

2.2 Interest, dividends and rent on land Interest 2 9 10Total 9 10

2.3 Sale of capital assetsTangible assets - 10

Machinery and equipment 27 - 10

Total - 10

2.4 Transactions in financial assets and liabilitiesOther Receipts including Recoverable Revenue 2 582 29Total 582 29

3. Compensation of employees3.1 Salaries and Wages

Basic salary 246 922 210 311Performance award 7 425 5 214Service Based 395 269Compensative/circumstantial 7 306 6 596Periodic payments 6 172 5 466Other non-pensionable allowances 50 790 42 856Total 319 010 270 712

3.2 Social contributionsEmployer contributionsPension 30 025 25 762Medical 14 882 13 556UIF - 7Bargaining council 75 50Total 44 982 39 375

Total compensation of employee 363 992 310 087

Average number of employees 795 750



Note 2017/18 2016/17R’000 R’000

4. Goods and services Administrative fees 389 774Advertising 2 612 399Minor assets 4.1 189 1 183Bursaries (employees) 1 213 1 923Catering 123 550Communication 2 229 3 560Computer services 4.2 671 955 465 615Consultants: Business and advisory services 13 542 1 268Infrastructure and planning services 449 -Legal services 3 138 1 892Contractors 4 077 2 518Audit cost – external 4.3 4 179 4 729Fleet services 1 367 202Consumables 4.4 5 350 4 566Operating leases 134 195 161 248Property payments 4.5 25 332 22 999Rental and hiring 388 586Travel and subsistence 4.6 1 133 998Venues and facilities 6 628 448Training and development 3 798 4 957Other operating expenditure 4.7 5 076 4 202Total 887 362 684 617

4.1 Minor assets

Tangible assets 189 1 183Machinery and equipment 4

4

4

189 1 183

Total 189 1 183

4.2 Computer services

SITA computer services 35 986 30 610External computer service providers 635 969 435 005Total 671 955 465 615

External computer services include operating expenditure incurred for GBN Services, Annual renewal of Software Licences and other IT services provided by the Department.

4.3 Audit cost – External Regularity audits 4 3 904 4 088Computer audits 4 275 641Total 4 179 4 729



Note 2017/18 2016/17R’000 R’000

4.4 ConsumablesConsumable supplies 1 458 907

Uniform and clothing 483 76Household supplies 58 102Building material and supplies 690 654Communication accessories 4 1IT consumables 210 74Other consumables 13 -

Stationery, printing and office supplies 3 892 3 659Total 5 350 4 566

4.5 Property payments

Municipal services 15 484 16 615Property management fees 10 16Property maintenance and repairs 4 133 5 855Other** 5 705 513Total 25 332 22 999

** Payments for various office hygiene services and installation of fire safety panel in the building.

4.6 Travel and subsistenceLocal 822 484Foreign 311 514Total 1 133 998

4.7 Other operating expenditureProfessional bodies, membership and subscription fees

91 290

Resettlement costs 112 212Other 4 873 3 700Total 5 076 4 202

Other operating expenditure includeservices.

payments for courier, delivery, Printing and publications

4

4

4

4

4



Note 2017/18 2016/17R’000 R’000

5. Payments for financial assetsDebts written off 5.1 48 20Total 48 20

5.1 Debts written offNature of debts written offOther debt written off 5Bad debts – Receivable income 13 15Bad debts – Staff debts 35 5Total debt written off 48 20

6. Transfers and subsidies

Higher education institutions Annex 1C 22 800 22 800Households Annex 1G 750 365Total 23 550 23 165

7. Expenditure for capital assets

Tangible assets 48 092 191 918Buildings and other fixed structures 29 32 757 72 289Machinery and equipment 27 15 335 119 629

Intangible assets 10 567 27 571Software 28 10 567 7 259Services and operating rights 28 - 20 312

Total 58 659 219 489

Purchase of major capital assets for GBN phase one completed in the prior years, resulting in adecrease in the current spending.



7.1 Analysis of funds utilised to acquire capital assets – 2017/18Voted funds Aid

assistanceTotal

R’000 R’000 R’000Tangible assets 48 092 - 48 092

Buildings and other fixed structures 32 757 - 32 757Machinery and equipment 15 335 - 15 335

Intangible assets 10 567 - 10 567Software 10 567 - 10 567

Total 58 659 - 58 659

7.2 Analysis of funds utilised to acquire capital assets – 2016/17

Voted funds Aid assistance

Total

R’000 R’000 R’000Tangible assets 191 918 - 191 918

Buildings and other fixed structures 72 289 - 72 289Machinery and equipment 119 629 - 119 629

Intangible assets 27 571 - 27 571Software 7 259 - 7 259Services and operating rights 20 312 - 20 312

Total 219 489 - 219 489

2017/18 2016/17R’000 R’000

7.3 Finance lease expenditure included in Expenditure for capital assets

Tangible assetsMachinery and equipment 423 658

Total 423 658

Payments made for leased GG vehicles from Government Garage.

8. Cash and cash equivalents

Consolidated Paymaster General Account 127 270 32 041Disbursements* (408) (6 294)Cash on hand 25 25Total 126 887 25 772

* Payments cleared from the departmental bank account after year end, and erroneous credits cleared after financial year systems closures.



9. Prepayments and advances

Note 2017/18

2017/18

2017/18

/ 2016/17R’000 R’000

Prepayments (Not expensed) 9.1 60 50Total 60 50

9.1 Prepayments (Not expensed)Note Balance as

at 1 April 2017

Less: Amount

expensed in current year

Add: Current Year

prepayments

Balance as at 31 March 2018

9

R’000 R’000 R’000 R’000Goods and services 50 - 10 60Total 50 - 10 60

10. Receivables2017/18 2016/17

Current Non-current

Total Current Non-current

Total

NoteR’000 R’000 R’000 R’000 R’000 R’000

Claims recoverable

10.1 2 303 - 2 303 144 - 144

Staff debt 10.2 407 - 407 415 - 415Other debtors

10.3 338 - 338 - - -

Total 3 048 - 3 048 559 - 559

An increase in receivable amount is due to FMDC payment made to the supplier on behalf of another Department.

10.1 Claims recoverableNote 2016/17

10 and Annex 4

R’000 R’000

Provincial departments 2 303 34Public entities - 110Total 2 303 144

10.2 Staff debtNote 2016/17

10

R’000 R’000Bursaries and Salary related 407 415Total 407 415



Note 2017/18 2016/17

10

R’000 R’000

10.3 Other debtors

Various clearing accounts 338 -Total 338 -

11. Voted funds to be surrendered to the Revenue Fund

Opening balance 25 808 22 750Transfer from statement of financial performance 127 448 25 808Paid during the year (25 808) (22 750)Closing balance 127 448 25 808

12. Departmental revenue to be surrendered to the Revenue Fund

Opening balance 66 227Transfer from Statement of Financial Performance 1 120 556Paid during the year (1 137) (717)Closing balance 49 66

13. Payables – current

Amounts owing to other entitiesAdvances received 13.1 1 937 -Clearing accounts 13.2 312 251Total 2 249 251

13.1 Advances received

Provincial departments 13 1 937 -Total 1 937 -

13.2 Clearing accounts

DescriptionSalaries clearing accounts 13 312 251Total 312 251



Note 2017/18 2016/17R’000 R’000

14. Net cash flow available from operating activities

Net surplus as per Statement of Financial Performance

128 568 26 364

31 213 190 112

(increase)/decrease in receivables – current (2 489) 169(Increase) in prepayments and advances (10) -Increase/(decrease) in payables – current 1 998 (6 069)Proceeds from sale of capital assets - (10)Expenditure on capital assets 58 659 219 489Surrenders to Revenue Fund (26 945) (23 467)Net cash flow generated by operating activities 159 781 216 476

15.

Consolidated Paymaster General account 127 270 32 041Disbursements (408) (6 294)Cash on hand 25 25Total 126 887 25 772

16. Contingent liabilities and contingent assetsContingent liabilities

Liable to NatureClaims against the department Annex 3B 8 839 8 839Intergovernmental payables (unconfirmed balances)

Annex 5 - 345

Total 8 839 9 184

The Department is applying for a dis

16.1 Contingent assetsNature of contingent assetCivil recovery for supplier account overpayment 605 605Civil case – irregular expenditure 42 944 42 944Recovery of payments incurred as a result of misrepresentation by suppliers.

2 071 2 071

Total 45 620 45 620

The Department is applying for a notice of set down for Trial.

Add back cash movements not deemed operating activities



Reconciliation of cash and cash equivalents for cash flow purposes

missal of the disclosed case through court.

2017/18 2016/17R’000 R’000

17. Commitments

Current expenditureApproved and contracted 1 079 589 245 293Capital expenditureApproved and contracted 330 -Total Commitments 1 079 919 245 293

Age Analysis:Not later than 1 year 990 606 143 925Later than 1 year and not later than 3 years 89 313 101 368Total 1 079 919 245 293

An increase in commitment is attributed to:Addition of 1% Vat increase in all existing contracts and commitment not concluded at year end, as well as the current year annual and multi years contracts.

18. Accruals and payables not recognised

18.1 AccrualsListed by economic classification

30 Days 30+ Days Total Total

Goods and services 7 637R’000 R’000

R’000 R’000

29 7 666 12 220Total 7 637 29 7 666 12 220

Listed by programme levelAdministration 4 530 3 022ICT Shared Services 3 136 9 198Total 7 666 12 220

18.2 Payables not recognisedListed by economic classification

30 Days 30+ Days Total Total

Goods and services 17 - 17 3 188Total 17 17 3 188

Listed by programme levelAdministration 17 2 805Solutions Systems & OperationBusiness Process Services

--

383-

Total 17 3 188




Note 2017/18 2016/17R’000 R’000

Included in the above totals are the following:Confirmed balances with other departments Annex 5 85 445Confirmed balances with other government entities

Annex 5 436 320

Total 521 765

19. Employee benefits

Leave entitlement** 11 875 11 271Service bonus (Thirteenth cheque) 9 466 8 150Performance awards 6 812 6 337Capped leave commitments 5 834 5 215Other* 158 316Total 34 145 31 289

*Other employee benefits relate to long service awards amount payable to eligible employees in the ensuing financial year.

**Included in leave entitlement is a negative balance of R800,128.93 in accordance with resolution 7 of 2000, which allows employees to accrue leave days on the 1st of January irrespective of the employment date.

20. Lease commitments

20.1 Operating leases

2017/18

Specialised military

equipmentLand

Buildings and other

fixed structures

Machinery and equipment Total

R’000 R’000 R’000 R’000 R’000Not later than 1 year - - 7 767 2 310 10 077Later than 1 year and not later than 5 years

- -5 150 3 884 9 034

Total lease commitments

- - 12 917 6 194 19 111

2016/17 Specialised military

equipmentLand

Buildings and other

fixed structures

Machinery and equipment

Total

R’000 R’000 R’000 R’000 R’000Not later than 1 year - - 45 207 645 45 852Later than 1 year and not later than 5 years

- - 108 772 322 109 094

Total lease commitments

- - 153 979 967 154946


Note 2017/18 2016/17R’000 R’000

20.2 Finance leases

2016/17

Specialised military

equipment Land

Buildings and other

fixed structures

Machinery and equipment

TotalR’000 R’000 R’000 R’000 R’000

Not later than 1 year - - - 452 452Total lease commitments - - - 452 452

21. Accrued departmental revenueSales of goods and services other than capital assets

23 25

Total 23 25

21.1 Analysis of accrued departmental revenue

Opening balance 25 21Less: amounts received (25) (21)Add: amounts recorded 23 25Closing balance 23 25

22. Irregular expenditure

22.1 Reconciliation of irregular expenditure

Opening balance 1 236 39 776Add: Irregular expenditure – relating to current year 32 681 85 791Less: Prior year amounts condoned (1 180) -Less: Amounts not condoned and not recoverable (29 478) (124 331)Closing balance 3 259 1 236

Analysis of awaiting condonation per age classificationCurrent year 3 203 1 180Prior years 56 56Total 3 259 1 236



Note 2017/18 2016/17R’000 R’000


22.2 Details of irregular expenditure – added current year (relating to current and prior years)

Incident Disciplinary steps taken/criminal proceedings

2017/18R’000

Non-compliance to SCM processes

Investigation finalised and exonerated officials 29 478

Non-compliance to SCM processes -Extension of contract

Investigation underway 3 203

Total 32 681

22.3 Details of irregular expenditure condonedIncident Condoned by 2017/18

R’000Non-compliance to SCM processes

National Treasury 1 180

Total 1 180

22.4 Details of irregular expenditure not recoverable (not condoned)

Incident Not condoned by (condoning authority) 2017/18R’000

Non-compliance to procurementprocesses – Gauteng security operations centre

National Treasury 29 478

Total 29 478

23. Fruitless and wasteful expenditure

23.1 Reconciliation of fruitless and wasteful expenditure

Opening balance - 5Less: Amounts resolved - (5)Closing balance - -

24. Related party transactions

Gauteng Department of e-Government is related to all Gauteng Provincial Departments and public entities by being under the control of Gauteng Premier and Gauteng Legislature. Transactions between the Department and G fleet are executed at arm’s length.


Bad debts Provision 2 Total provisions

R’000 R’000 R’000 R’000

Provision 3

2017/18 2016/17R’000 R’000

25. Key management personnel

No. of Individuals

Officials:Level 15 to 16 3 4 588 4 316Level 14 10 10 911 9 464

Total 15 499 13 780

26. Provisions

Bad debts 341 401Total 341 401

26.1 Reconciliation of movement in provisions – 2017/18

Bad debts Provision 2 Provision 3 Total provisions

R’000 R’000 R’000 R’000

Opening balance 401 - - 401Increase in provision 26 26Settlement of provision (86) - - (86)Closing balance 341 - - 341

Opening balance 403 - - 403Settlement of provision (2) - - (2)Closing balance 401 - - 401

Note 2017/18 2016/17R’000 R’000

26.2 Reconciliation of movement in provisions – 2017/18




27. Movable Tangible Capital AssetsMOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2018

Opening balance

Valueadjustments

Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000MACHINERY AND EQUIPMENT

223 376 - 6 549 - 229 925

Transport assets 5 115 - - - 5 115Computer equipment 183 556 - 1 297 - 184 853Furniture and office equipment 22 784 - 2 355 - 25 139Other machinery and equipment 11 921 - 2 897 - 14 818

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

223 376 - 6 549 - 229 925

Movable Tangible Capital Assets under investigationNumber Value

R’000Included in the above total of the movable tangible capital assets per the asset register are assets that are under investigation:Machinery and equipment 3 040 173 022

Assets stolen and assets not found from the floor during assets verification process.

27.1 AdditionsADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2018

Cash Non-cash (Capital Work in

Progress current

costs and finance

lease payments)

Received current, not paid

(Paid current

year, received

prior year)

Total

R’000 R’000 R’000 R’000 R’000MACHINERY AND EQUIPMENT

15 335 - (8 786) - 6 549

Transport assets 423 - (423) - -Computer equipment 9 660 - (8 363) - 1 297Furniture and office equipment 2 355 - - - 2 355Other machinery and equipment

2 897 - - - 2 897

TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS

15 335 - (8 786) - 6 549


27.2 Movement for 2016/17MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Opening balance

Prior period

error


R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT

150 137 321 118 170 (45 252) 223 376

Transport assets - - 5 115 - 5 115Computer equipment 121 363 - 103 725 (41 532) 183 556Furniture and office equipment 24 325 - 1 371 (2 912) 22 784Other machinery and equipment 4 449 321 7 959 (808) 11 921

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

150 137 321 118 170 (45 252) 223 376

27.2.1.Prior period error2016/17

R’000Nature of prior period errorRelating to 2016/17 321Capitalised Minor Assets 321

Total prior period errors 321

27.3 Minor assetsMOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2018

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

- 48 - 15 018 - 15 066

Additions - - - 230 - 230Disposal - (48) - - - (48)TOTAL MINOR ASSETS

- - - 15 248 - 15 248


Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

Number of minor assets at cost

- - - 9 151 - 9 151

TOTAL - - - 9 151 - 9 151




Minor Capital Assets under investigationNumber Value

R’000Included in the above total of the minor capital assets per the asset register are assets that are under investigation:Machinery and equipment 4016 7 667

Assets stolen and assets not found from the floor during assets verification process

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2017


Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

R’000 R’000 R’000 R’000 R’000 R’000

Opening balance

- 48 - 19 213 - 19 261

Prior period error

- - - (321) - (321)

Additions - - - 1 183 - 1 183Disposals - - - (5 057) - (5 0 57)TOTAL MINOR ASSETS

- 48 - 15 018 - 15 066

Specialisedmilitary assets

Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

Number of minor assets at cost

- 14 - 8905 - 8919

TOTAL NUMBER OF MINOR ASSETS

- 14 - 8905 - 8919


27.3.1 Prior period error2016/17

R’000Nature of prior period errorRelating to 2016/17 [affecting the opening balance] (321)Capitalised minor assets (321)

Total prior period errors (321)

MAJOR ASSETS SUBJECTED TO TRANSFER IN TERMS OF S42 OF THE PFMA 31 MARCH 2017


Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

No. of Assets - - - 9 - 9Value of the assets (R’000)

- - - 100 - 100

MINOR ASSETS SUBJECTED TO TRANSFER IN TERMS OF S42 OF THE PFMA 31 MARCH 2017


Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

R’0

No. of Assets - - - 15 - 15Value of the assets (R’000)

- - - 32 - 32

28. Intangible Capital AssetsMOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2018

Opening balance

Valueadjustments


R’000 R’000 R’000 R’000 R’000

software 496 470 - 10 567 (331 903) 175 134services and operating rights

37 355 - - - 37 355

TOTAL INTANGIBLE CAPITAL ASSETS

533 825 - 10 567 (331 903) 212 489




28.1 AdditionsADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED31 MARCH 2018

Cash Non-Cash (Develop-ment work

in progress –

current costs)

Received current

year, not paid

(Paid current

year, received

prior year)

Total

R’000 R’000 R’000 R’000 R’000

Software 10 567 - - - 10 567TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS

10 567 - - - 10 567

28.2 Disposals

DISPOSALS OF INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2018

Sold for cash

Non-cash disposal

Total disposals

Cash Received

ActualR1`’000 R’000 R’000 R’000

Computer Software - (331 903) (331 903) -TOTAL DISPOSALS OF INTANGIBLE CAPITAL ASSETS

- (331 903) (331 903) -

28.3 Movement for 2016/17

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Opening balance

Prior period

error


R’000 R’000 R’000 R’000 R’000

Software 489 211 - 7 259 - 496 470Services and Operating rights

17 043 - 20 312 - 37 355

TOTAL INTANGIBLE CAPITAL ASSETS

506 254 - 27 571 - 533 825


29. Immovable Tangible Capital AssetsMOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2018

Opening balance

Valueadjustments


R’000 R’000 R’000 R’000BUILDINGS AND OTHER FIXED STRUCTURES

182 805 - 32 757 - 215 562

Other fixed structures 182 805 - 32 757 - 215 562

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS

182 805 - 32 757 - 215 562

29.1 AdditionsADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2018

Cash Non-cash (Capital Work in

Progress current

costs and finance

lease payments)

Received current, not paid

(Paid current

year, received

prior year)

Total

R’000 R’000 R’000 R’000 R’000

BUILDING AND OTHER FIXED STRUCTURES

32 757 - - - 32 757

Other fixed structures 32 757 - - - 32 757

TOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS

32 757 - - - 32 757

29.2 Movement for 2016/17MOVEMENT IN IMMOVABLE TANGIBL E CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 20YY

Opening balance

Prior period

error


R’000 R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES

110 516 - 72 289 - 182 805

Other fixed structures 110 516 - 72 289 - 182 805

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS

110 516 - 72 289 - 182 805




29.3 Capital Work-in-progress

CAPITAL WORK-IN-PROGRESS AS AT 31 MARCH 2018

Note

Opening balance

1 April 2018

Current Year WIP

Ready for use

(Assets to the AR) /

Contracts terminated

Closing balance

31 March 2018

Annexure 7

R’000 R’000 R’000 R’000

Machinery and equipment 360 523 8 363 - 368 886TOTAL 360 523 8 363 - 368 886

CAPITAL WORK-IN-PROGRESS AS AT 31 MARCH 2017

Note

Openinngbalance1 April

2017

Prior period

error

Current Year WIP

Ready for use

(Assets to the AR) ) / Contracts

terminated

Closing balance

31 March 2017

Annexure 7

R’000 R’000 R’000 R’000 R’000

Buildings and other fixed structures Machinery and equipment

359 722 - 100 163 (99 362) 360 523

TOTAL 359 722 100 163 (99 362) 360 523

30. Prior period errors30.1 Correction of prior period errors

Amount beferror correction

Prior period error

RestatedAmount

2016/17 2016/17 2016/17R’000 R’000 R’000

Other: Major Assets ** 150 137 321 150 458Minor Assets ** 15 387 (321) 15 066Net effect 165 524 - 165 524

** 2016/17 Minor assets capitalised.


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GAUTENG DEPARTMENT OF e-GOVERNMENTVOTE 13UNAUDITED ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2018

ANNEXURE 7

MOVEMENT IN CAPITAL WORK IN PROGRESS

MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2018

Opening balance

Current Year

Capital WIP

Ready for use (Asset register) / Contract

terminatedClosing balance

R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 360 523 8 363 - 368 886Computer equipment 360 523 8 363 - 368 886

SOFTWARE - - - -Software - - - -

TOTAL 360 523 8 363 - 368 886

MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2017

Opening balance

Prior period

error

Current Year

Capital WIP

Ready for use (Assetregister) / Contract

terminatedClosing balance

R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 359 722 - 100 163 (99 362) 360 523Computer equipment 358 659 - 100 163 (98 299) 360 523Other machinery and equipment 1 063 - - (1 063) -

TOTAL 359 722 - 100 163 (99 362) 360 523

GAUTENG DEPARTMENT OF e-GOVERNMENTVOTE 13UNAUDITED ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2018


ANNEXURE 8B

INTER-ENTITY ADVANCES RECEIVED (note 13)

ENTITY

Confirmed balance outstanding

Unconfirmed balance outstanding TOTAL

31/03/2018 31/03/2017 31/03/2018 31/03/2017 31/03/2018 31/03/2017R’000 R’000 R’000 R’000 R’000 R’000

PROVINCIAL DEPARTMENTSCurrentSports, Arts, Culture & Recreation

1 937 - - - 1 937

TOTAL 1 937 - - - 1 937 -Current 1 937 - - - 1 937 -

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137

Notes


PART F:OUTLOOK FOR THE COMING YEAR

OUTLOOK FOR THE COMING YEAR


Infrastructure

The Department will continue to provide access for citizens, business and employees to the available government services. In this regard, the Department will provide connectivity infrastructure through GBN and increase the number of sites connected onto the network. To ensure compliance to the Protection of Personal Information Act, and ensure the safety of citizen, business and employees as they use on-line services, the Department will implement the GPG cybersecurity policy and strategy.

GPG data and applications are hosted in a government private cloud, the FMDC. The Depart-ment aims to migrate all GPG Departments and entities to the FMDC by the end of the 2018/19 financial year.

Applications

The Department will expand the number of e-services available on the Common Platform and design, develop and deliver an expanding range of GCR applications and e-services to improve service delivery to citizens, business, employees and government.

In addition, the Department will promote the usage of Government e-services by citizens, businesses and government entities.

Improving Efficiencies

Government is operating in a fiscally constrained environment where available resources do not match long-term policy aspirations. With limited resources, choices must be made by the province about which ICT activities and programmes can be decentralised to departments. The As-Is evaluation was conducted to identify deficiencies in the management of the digital ecosystem. The Department established a comprehensive data base of ICT applications, projects and contracts for each GPG department complied. The Department will utilise the information to consolidate and standardised applications, ICT projects and contracts through-out the province.

As an outcome of Gauteng Technology Innovation Conference 2018 held in February 2018, the Department will facilitate the establishment of the Provincial Innovation Forum.

Strengthening Governance

To establish generic operational governance guidelines for the province in respect of ICT services, the Department will facilitate monitoring of existing ICT policies and frameworks as well as development of a big data strategy that will guide the collection, processing and use of this important resource for government and all other partners in the innovation ecosystem. In addition, the Department will focus on the formulation of a cyber-security task team that will coordinate all elements to prevent and combat cyber security threats to our ecosystem.

Through the establishment of the Department, the province has practically demonstrated its resolve to exploit the economies of scale principle to its fullest potential in the ICT environ-ment. In this way the province aims to streamline provision of e-services and therefore reduce unnecessary replication across departments and create efficiencies in the system. Furthermore, the consolidated ICT e-services into the Department of e-Government will create a single centre of excellence that services all departments. It is also indicative that uniformity in respect of policies and practices must be fostered across departments as part of modernisation of the public service.

REVISED EGov Annual Report Inside Pages (Part A) copy · 2019-03-20 · ANNUAL REPORT FINANCIAL...

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