DEPARTMENT OF PUBLIC WORKS - Provincial Government · The Construction Industry Development Board Act No. 38 of 2000; ... Leanerships and internship programmes accounted for 33 appointments

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DEPARTMENT OF PUBLIC WORKS

PROVINCE OF KWAZULU–NATAL ~ ISIFUNDAZWE SAKWAZULU-NATALI

ANNUAL REPORT

2012–2013

Date of Tabling: September 2013

PR139/2013

ISBN: 978-0-621-41832-3

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OFFICIAL HANDOVER OF 2012-13 ANNUAL REPORT

To: HON MEC R R Pillay;

MEC for Human Settlements and Public Works

I have the honour of submitting the Annual Report of the KZN Public Works Department

for the period 1 April 2012 to 31 March 2013.

From: Mr. A Govender;

Accounting Officer

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KZN DEPARTMENT OF PUBLIC WORKS

VOTE 14

2012/13 ANNUAL REPORT

TABLE OF CONTENTS

1. GENERAL INFORMATION .................................................................................................................... 4

1.1 Vision, Mission and Values .................................................................................................................. 4

1.2 Organisational Structure ...................................................................................................................... 5

1.3 Legislative Mandates ........................................................................................................................... 5

1.4 Entities Reporting to the MEC ............................................................................................................ 6

1.5 MEC FOREWORD ................................................................................................................................. 7

1.6 Overview by the Head of Department ............................................................................................... 10

2 INFORMATION ON PRE-DETERMINED OBJECTIVES………………… ........................................... 13

2.1 Overall Performance .......................................................................................................................... 13

2.2 Programme Performance .................................................................................................................. 23

2.2.1 Programme 1: Administration ............................................................................................ 24

2.2.2 Programme 2: Real Estate ................................................................................................. 35

2.2.3 Programme 3: Operations ................................................................................................ 47

3. ANNUAL FINANCIAL STATEMENTS ................................................................................................. 87

3.1 Report of the Audit & Risk Committee ……………………………………………………..…..……….144

3.2 Report of the Accounting Officer ...................................................................................................... 91

3.3 Report of the Auditor General ….……………………… ……………………….……………...161

3.4 Appropriation Statement .................................................................................................................. 108

4. HUMAN RESOURCE MANAGEMENT .............................................................................................. 194

5. OTHER INFORMATION ..................................................................................................................... 222

5.1 Acronyms .......................................................................................................................................... 222

5.2 List of contact details ...................................................................................................................... 223

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1. GENERAL INFORMATION

1.1 Vision, Mission and Values

VISION

“A thriving economy through infrastructure development and property management.”

MISSION

“We will lead in infrastructure development and property management in Kwazulu – Natal”.

CORE VALUES

The KwaZulu-Natal Department of Public Works has been guided by the following values:

Batho Pele Principles

The Citizens Charter

Cost Effectiveness : Value for money

Quality : We will adhere to prescribed standards

Professionalism : We will take pride in everything we do

Integrity : We will be honest and reliable in all our dealings

Service Excellence : We will be proactive in responding to the needs of our

clients

Corporate Governance : Good Governance

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1.2 Organisational Structure

1.3 Legislative Mandates

Within the broad statutory mandates of government institutions, the following mandates

guide the KZN Public Works department‟s core functions:

The Construction Industry Development Board Act No. 38 of 2000;

Property Valuers Professional Act No. 47 of 2000;

National Building Regulations and Building Standards Act No. 103 of 1977;

Council for the Built Environment Act No. 43 of 2000;

Engineering Profession Act No. 46 of 2000;

Architectural Profession Act No. 44 of 2000;

Quantity Surveying Profession Act No. 49 of 2000;

Project and Construction Management Professions Act No. 48 of 2000;

Occupational Health and Safety Act No. 85 of 1993;

Occupational Injuries and Diseases Act No. 130 of 1993;

State Land Disposal Act No. 48 of 1961;

Deeds Registry Act No. 47 of 1937;

HEAD OF DEPARTMENT

GENERAL MANAGER Operations

Mr T A Mdadane

MManManager

CHIEF FINANCIAL OFFICER Mr J Redfearn

GENERAL MANAGER Corporate Services

Mr P W Duma

KWAZULU - NATAL DEPARTMENT OF PUBLIC WORKS

ORGANISATIONAL STRUCTURE

GENERAL MANAGER: Property Management

Mrs S Linda

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Expropriation Act No. 63 of 1975;

Prevention of Illegal Eviction from, and unlawful occupation of land Act No. 19 of 1998;

National Environmental Management Act No. 107 of 1988;

KwaZulu-Natal Land Administration Act, 3 of 2003

The KwaZulu–Natal Heritage Act 10 of 1977,

Broad Based Black Economic Empowerment Act No. 53 of 2003;

Promotion of Administrative Justice Act No. 3 of 2000;

Promotion of Access to Information Act No. 2 of 2000;

Labour Relations Act No. 66 of 1995;

Employment Equity Act No. 55 of 1998;

South African Qualification Authority Act No. 58 of 1995;

Skills Development Act No. 97 of 1998;

Public Finance Management Act No. 1 of 1999;

Preferential Procurement Policy Framework Act No. 2 of 2000

Basic Conditions of Employment Act No. 75 of 1997; and

Government Immovable Asset Management Act No. 19 of 2007

1.4 Entities Reporting to the MEC

There are no entities reporting to the MEC in the KZN Public Works Department.

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1.5 MEC FOREWORD

Mr RR Pillay [MPL]


The 2012/2013 Annual Report for the KwaZulu-Natal Department of Public Works highlights and presents progress toward strategic priorities in executing the third year of the Departmental Five-Year Strategic Plan (2010- 2014). This Report reflects the results of the efforts that confirmed the overall policy direction outlined in the Five-Year Strategic Plan (2010-2014) and re-affirmed the Departmental mandate of providing, maintaining and managing the provincial state-owned building infrastructure. As always, we are determined to continue to contribute to the national and provincial priorities of infrastructure-led economic development, skills development, transformation of the construction and property management sectors, job creation and poverty alleviation through labour-intensive construction methods.

The Department has committed itself to the following priorities within its Annual Performance Plan for 2012/13:

Eliminate waste and improve service delivery by intensifying the fight against fraud and corruption;

Poverty alleviation and the creation of work opportunities;

To address the land and building needs of provincial departments as per their confirmed requests;

To efficiently and effectively manage the provincial Fixed Asset Register;

To effectively manage immovable assets in terms of GIAMA by developing long term User and Custodian Asset Management Plans;

To meet job creation, skills development and sector transformation objectives through implementation of established programmes;

To provide strategic leadership, effective corporate governance and to build internal capacity;

Implement efficient financial management systems in full compliance with the PFMA, Treasury Regulations and Practice Notes.

In meeting the Department‟s mandate and in heeding our President‟s call to improve service delivery, create work opportunities and contribute towards our goal of a better life for all, the Department utilised the Integrated Infrastructure Delivery Improvement Programme (IDIP) to meet the short-to-medium term building infrastructure needs of provincial client departments. Progress in infrastructure delivery included the construction and completion of 350 projects for the Departments of Education and Health, comprising 275 classrooms and toilets, 2

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schools and 73 clinics & Hospitals. In addition 87 maintenance projects were completed for Client Departments. The Department has made significant progress in collaborating with client Departments to develop long-term User Asset Management and improved long-term property planning in line with the objectives of the Government Immovable Asset Management Act (GIAMA). To complement these achievements, the Department intensified efforts to complete the registration processes for those provincial assets that still need to be registered in the name of the province as well as update the Fixed Asset Register to achieve a more complete information base for improved property planning. 10 R293 properties and 89 Umzimkhulu Provincial properties have been registered in the name of the KZN Provincial Government whilst 713 facilities and 1859 land parcels were updated in the Fixed Asset Register.

The responsibility to coordinate the Infrastructure Work Group to speed the infrastructure revolution in the Province has resulted in the Department fervently continuing to focus its energy on meeting the building infrastructure needs of its provincial client Departments through new construction, maintenance and various forms of acquisition and disposal. This included the implementation of identified intervention strategies to combat the challenge of delayed projects due to poor contractor performance as well as internal capacity constraints. Sustained government investment in infrastructure development is expected to continue to play a major role in economic recovery efforts. By providing efficient and effective services within the constraints of time, cost and quality will hopefully assist the Department in becoming the service provider of choice for client departments. The department is currently working closely with Provincial Treasury and other Departments in accordance with a Contractor Development Policy and Implementation Strategy and has formalised a policy document to articulate uniform processes that will be followed by all KwaZulu-Natal Provincial Departments in the planning, budgeting, procurement, implementation, reporting, monitoring and evaluation of infrastructure projects in the Province. This is in line with government‟s priority of identifying infrastructure delivery as one of the key mechanisms to enhance socio-economic growth and development. The Department also established a Contractor Development Forum to address issues within the Provincial mandate which hamper the development of emerging contractors.

Skills development and the creation of employment is a key priority of Government. The implementation of skills development initiatives in an effort to address the scarcity of skills within the technical fields that relate to the Department‟s core function has become an integral part of our key focus areas. Leanerships and internship programmes accounted for 33 appointments within the Department. In response to national and provincial imperatives, the Department maintained the positive trend in the growth of its contribution to the Provincial Expanded Public Works Programme for which it has received the EPWP Incentive Grant. An annual contribution of 28 000 work opportunities is planned per year over the MTEF period and significantly, a considerable amount of effort has gone into the creation of work opportunities. We are pleased to report that we have exceeded targets in that 214 306 work opportunities equating to 8 855 jobs within the Expanded Public Works Programme (EPWP) have been created during the year under review.

The Department also contracted indigent community members to clear government property sites through its Izandla Ziyagezana Poverty Alleviation Programme which yielded 142 new full time jobs. The Department continues to build capacity in the built environment to support economic growth within that sector. With regard to sector specific skills, 63 participants attended the Property Incubator Programme training. The Department initiated several programmes aimed at developing the skills of young people since Youth comprise 70% of the population of KwaZulu-Natal. Our National Youth Service programme assists learners to

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acquire skills in various technical fields, bricklaying, carpentry and plastering. 100 Youth are have commenced training in Building and Civil Construction while 111 Youth are recruited under the Artisan Development Apprenticeship Programme.

The Department also maintained its focus on ensuring systems for effective corporate governance and the combating of fraud and corruption through internal awareness workshops and the establishment of Risk Management Committees. In implementing the Fraud Prevention Strategy, the Department has developed partnerships with law enforcement agencies to accentuate its zero tolerance commitment to eradicate fraud and corruption. Furthermore, all employees in the department are required to disclose their financial interests.

The Department has consistently complied with the provincial cost-cutting measures and has reduced wastage in order to enhance and improve service delivery. We are also particularly proud in being accredited a prestigious 5 Green Star Award for following the green and energy efficiency approach to construction of our Sisonke District Office, by the Green Building Council of South Africa. Furthermore a total of 51 jobs were created during building and construction of this facility.

In closing, I would like to recognise the efforts of the management of the Department in providing strategic leadership, continuously promoting a culture of good governance and ensuring that support systems and processes are in place and are fully functional in an endeavour to deliver on its mandate. Let us continue to work cooperatively with all partners to respond to the service delivery needs of all our stakeholders in KwaZulu-Natal. Collective effort has contributed to the achievements of the Department but we must also take cognizance of areas that require improvement. We will always remain committed to working together for growth, development and a better future for the citizenry of the Province. By providing services that meet the requirements of our clients and ultimately the end-user, we will achieve our aim to become the service provider of choice for client Departments.

Together doing more and better in building a better future together!

Mr RR Pillay [MPL]

Executive Authority: KwaZulu-Natal Human Settlements and Public Works

MEC: Human Settlements and Public Works

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1.6 Overview by the Head of Department

Whilst the department has taken the lead in infrastructure development and property

management in the KwaZulu-Natal provincial administration, by virtue of excellence in

service delivery it wishes to become the service provider of choice for all client Departments.

The Department provides the following core services:

Acquisition of buildings and land through purchase, hiring and leasing;

Management of the asset register for provincial fixed assets [ land and buildings]

Construction of public buildings, including both new construction and renovation;

Maintenance of public buildings and land, including needed repairs and

improvements, and

Alienation of public buildings and land, including disposal of fixed assets by sale,

demolition, exchange and donation.

During the 2012/13 financial year, the department maintained its focus on its established

programmes as per the 5-year strategic plan and the annual performance plan. This was

done as a strategic move towards the implementation of the 2010-2015 Medium Term

Strategic Framework (MTSF) since these programmes continue to respond to the national

objectives of building economic and social infrastructure, intensifying skills development,

creating decent jobs, broad based Black economic empowerment and sustainable

livelihoods contained in the new MTSF.

The departmental strategic goals for the 2012/13 financial year, in line with the focus stated

above, are listed below:

To improve integrated service through implementing the multi-year service delivery

model, the Infrastructure Delivery Improvement Programme (IDIP)

To provide and facilitate the provision of accommodation and property management

services to satisfy client needs

To achieve optimal utilization of fixed state assets through effective implementation

of the Government Immovable Asset Management Act

To create jobs through massification of the Expanded Public Works Programme

(EPWP) and Izandla Ziyagezana Programme

To enhance the benefits of programmes to bridge the gap between the first and

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second economy and the anti-poverty campaign through Broad Based Black

Economic empowerment through targeted interventions to bridge the gap between

the first and second economy such as:

-Skills development

- Employment creation

- Creation of an enabling environment to attract women, youth and the disabled to

the construction industry through active support for emerging contractors and

consultants

To implement the National Youth Service programme

To ensure effective and efficient management of the department‟s financial resources

To have a competent, empowered and motivated workforce

To ensure effective monitoring, reporting and communication of departmental

objectives and achievement at all levels.

The budget allocation to the Department‟s vote increased by 11.5% from R1,212,970,000 in

2011/2012 to R1,352,388,000 in 2012/2013. At the end of the 2012/2013 financial year, the

Department had spent R1,133,311,000 or 83.8% of its budget.

Through the Infrastructure Delivery Improvement Programme (IDIP), the Department

provided services to all client departments valued at R2.45 billion on infrastructure and R260

million on the hiring of Properties for Provincial Government. The department is currently

working closely with Provincial Treasury and other Departments in accordance with a

Contractor Development Policy and Implementation Strategy and has formalised a policy

document to articulate uniform processes that will be followed by all KwaZulu-Natal

Provincial Departments in the planning, budgeting, procurement, implementation, reporting,

monitoring and evaluation of infrastructure projects in the Province. This is in line with

government‟s priority of identifying infrastructure delivery as one of the key mechanisms to

enhance socio-economic growth and development. The Department also established a

Contractor Development Forum to address issues within the Provincial mandate which

hamper the development of emerging contractors.

The department continued to respond to client needs for office accommodation through

property purchases and hirings as well as property letting or disposal in areas of need.

Updating of the property register remained a priority activity and engagements of the

Department of Rural Development and Land Affairs and all provincial departments to ensure

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effective management of issue of immovable assets and their disclosure in the financial

statements. The quality of the register continues to be enhanced. 10 R293 properties and 89

Umzimkhulu Provincial properties have been registered in the name of the KZN Provincial

Government whilst 713 facilities and 1859 land parcels were updated in the Fixed Asset

Register. In terms of long term asset maintenance planning in line with the Government

Immovable Asset Management Act, the department has received all of the draft User Asset

Management plans. The department will continue to devote its efforts to improving the quality

of the information in consultation with client departments.

The Expanded Public Works Programme once again, exceeded its annual job creation target

with 214 306 Work Opportunities equating to 8,855 actual jobs and 2,753 FTEs, created.

The Programme continued to contribute to the provincial EPWP targets through the

application of labour intensive methods in the department‟s infrastructure projects and

upscaling of the Izandla Ziyagezana and KZN Integrated Greening Programmes.

In closing, I would like to acknowledge the guidance and leadership of the MEC for Public

Works and Human Settlements, Mr R R Pillay, and the support and efforts of the

management and staff of the Department of Public Works in ensuring that best efforts and

excellence in service is always maintained.

Mr A Govender

HoD : Department of Public Works

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2. INFORMATION ON PRE-DETERMINED OBJECTIVES

2.1 Overall Performance

2.1.1 Voted Funds

Voted funds for 2012/13

Appropriation Main

Appropriation

(R’ 000)

Adjusted

Appropriation

(R‟ 000)

Actual

Amount

Spent

(R'000)

Under / (Over)

Expenditure

(R‟000)

Vote 14 R1,311,171 R1,352,388 R1,133,311 R219,077

Responsible

MEC

MEC For KZN

Public Works

Hon. R R Pillay

Administering

Department

KZN Department

of Public Works

Accounting

Officer

Head of

Department

Mr. A Govender

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2.1.2 Aim of vote

The main aim of the vote is to enable the department to provide building infrastructure and property management services to all

departments in the Kwazulu – Natal provincial government.

2.1.3 Summary of Programmes

The activities of the KZN Public Works Department are organized in the following

programmes:

Programme 1: Administration

Programme 2: Real Estate

Programme 3: Provision of buildings, structures & equipment (Operations)

The purpose of each programme is detailed under 2.2 below.

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2.1.4 Key strategic objectives achievements


The Department filled 78.3% of posts on the approved Human Resource Provisioning Plan in 2012/13 which was lower than

2011/12, due to the high turnover and delays in the vetting and verification processes. The overall vacancy rate in 2012/13

increased to 8.3% from 7.2% in 2011/2012.

The Internship Programme, whose objective is to fill the skills gap in the critical occupational categories, had a total of 10

interns appointed from a target of 11.

In terms of contributing to the Provincial Transformation Profile; the department aims to achieve a 50: 50 gender representation

for all its employees. In 2011/12, 39% of all posts were occupied by women and there has been no improvement on this in

2012/13, still below the target.

As indicated in subsection 2.1.9 below, the Department of Public Works under-spent it‟s 2012/13 Final Appropriation, with

savings of R219, 077 million.

The department continued to liaise closely with client departments in order to recover claims due and minimize cash flow

problems. The department collected revenue totalling R23,394 million in 2012/13, exceeding the revenue budget by 225.5 per

cent, with most areas showing over-collection


Updating of the Fixed Asset register continued to be a key performance area. 8999 of 11165 facilities and 7368 of 13291 land

parcels were fully updated in line with GIAMA requirements.

A total of 120 hired facilities were audited against a planned target of 108 for 2012/2013

The department hired 204 properties of the targeted 97 properties for 2012/13.

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142 jobs were created under the Izandla Ziyagezana Programme on new sites compared to the targeted 78 jobs.

All Municipalities that submitted invoices were paid in full. A total of R403m was paid.

A total of 14 redundant land parcels were disposed of whilst 20 properties were let to ensuring value for money on Provincially

owned land and buildings

A total of 9 properties were acquired and 204 leases finalised in hired buildings in various areas to support service delivery.

A total of 90 leases were finalised for Provincial facilities situated on Ingonyama Trust land.

Programme 3: Provision of buildings, structures and equipment (Operations)

The Department spent R2,450,082 billion against allocated budget of R2,331,711 billion, equating to 105% expenditure of

Client departments budgets in implementing infrastructure building projects as compared to R1,642,962 billion spent in the

previous year (equating to 96% of expenditure).

The department completed 220 new projects (50 Classrooms and 170 Toilets) as well as existing backlog of 55 projects

(25 Classrooms and 30 Toilets) during 2012/13 financial year. The remainder is scheduled for completion in the 2013/14

financial year. Non-performance by contractors contributed to the shortfall in clearing the backlog. In addition, 02 new schools

were completed; 49 new projects (25 Clinics and 24 Hospitals) and 20 existing backlog projects (10 Clinics and 10 Hospitals);

as well as 06 Health Revitalization projects were completed in 2012/13.

The EPWP programme created 214,306 Work Opportunities against a target of 28 000. This equates to 8 855 actual jobs

created and 2,753 FTEs created by end of March 2013. 100% expenditure of EPWP Integrated Grant realized by the end of

March 2013 on the implementation of KZN Integrated Greening Programme. This equates to the total amount of R5,731,251

Million of Integrated Grant, spent to implement greening programme against the total budget of R5,750,000 Million. 100 NYS

learners commenced classroom training in all regions.

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2.1.5 Overview of the service delivery environment for 2012/13

In line with the five-year strategic plan for 2010/11 – 2014/15, the department had the opportunity to deliver on some of the 10

national strategic priorities by utilizing developed programmes already in the Provincial Programme of Action (e.g. Expanded Public

Works Programme; National Youth Service; Izandla Ziyagezana; Internship; Bursary; and Learnership programmes) and further

make these to be an integral part of the Premier‟s Flagship Programme.

2.1.6 Overview of the organisational environment for 2012/13

The department utilised its accumulated experience in the Building Environment as well as its established business systems and

processes to maximise the delivery of high quality projects and property management services.

2.1.7 Key policy developments and legislative changes

There were no significant revisions to the department's legislative or other mandates during the planning and implementation periods

of the 2012/13 Annual Performance Plan.

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2.1.8 Departmental revenue, expenditure, and other specific topics

The table below shows the revenue budget for the Department of Public Works for 2012/13, and the actual revenue collected for the

year.

Details of provincial own receipts - Vote 14 -

2012/13

R thousand

Final Over/ % collected

Actual

Appropriation (Under)

(1) (2) (3) = (2) - (1) (4) = (1) / (2)

Tax receipts

-

-

-

-

Casino taxes

-

-

-

-

Horse racing taxes

-

-

-

-

Liquor licences

-

-

-

-

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Motor vehicle licences

-

-

-

-

Sale of goods and services other than

capital assets 6, 122 4, 071 2, 051 149.5

Transfers received - - - -

Fines, penalties and forfeits - - - -

Interest, dividends and rent on land 220 170 50 129.4

Sale of capital assets 15, 908 - 15, 908 100.0

Transactions in financial assets and

liabilities 1, 392 1, 257 (113) (8.9)

Total 23, 642 5, 498 17, 896 325.5

The department collected revenue totalling R23.642 million in 2012/13, exceeding the revenue budget by 225.5 per cent, with most

areas showing over-collection.

The over-collection on Sale of goods and services other than capital assets, recorded a collection of R6.122 million. The main

contributors to this category are sale of tender documents, housing rent recoveries, rent for parking and rental received for state

property.

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Another driver of the over-collection is Interest, dividends and rent on land, which recorded an over-collection of R50 000. The

department attributes this to interest generated from a lump-sum that was held in trust pending finalisation on the sale of land.

The main source of over-collection was Sale of Capital Assets which is also the largest contributor to the department‟s total revenue

collected of R15.908 million mainly due to the unanticipated sale of old vehicles through auctions as well as sale of land in respect of

24 Hunt Road, Durban and the old St Anne‟s Hospital.

The under-collection on Transactions in financial assets and liabilities, where collections were 8.9 per cent of Final Appropriation, or

R113 000 below budget. This was mainly due to under-collection for receipts of previous year‟s expenditure as well as non-

contractual staff debts which are difficult to forecast.

2.1.9 Departmental expenditure

The table below illustrates actual expenditure for Vote 14 for 2012/13, per programme and economic classification, respectively. Also

given in the tables are the Adjusted Appropriation, any virements made after the tabled Adjustments Estimate, and the Final

Appropriation.

Summary of expenditure analysis by

programme - Vote 14 - 2012/13

R thousand

Adjusted Virement

Post

Adj. Est.

Final Under/

%

spent

Actual

Appropriation

Appropriation (Over)

(1) (2) (3) (4) = (2) + (3)

(5) = (4)

- (1)

(1) /

(4)

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1. Administration 285 966 278 966 6 989 285 955 (11) 100.0

2. Real Estate 474 335 681 433 (9 804) 671 629 197 294 70.6

3. Provision of Buildings, Structures &

Equip. 372 762 391 989 2 815 394804 21 794 94.4

- - - - - -

Total 1 133 063 1 352 388 - 1 352 388 219 077 83.8

As is reflected in the above table, the Department of Public Works under-spent its 2012/13 Final Appropriation by R219, 077 million,

with spending at 83.8 per cent of budget.

Programme 2: Real Estate was under-spent at 29.4 per cent, or by R197.294 million. The major under-expenditure was in relation to

Transfers & Subsidies (R150m) for payment of property rates, this grant was overfunded as the baseline used to calculate the

allocation was inclusive of arrears and penalties. The department had indicated its intention to surrender an amount of R120m to

National Public Works and National Treasury. Goods and Services: R46 million viz Agency and Outsourced Services for Giama due

to delays in the tender processes in acquiring services provider with the appropriate capacity to undertake conditional assessments

and the procurement and development of the fixed asset management tool which was put on hold by National Public Works. Funds

totalling R29 million were requested to be rolled over for commitments, in respect of the fixed asset management tool and GIAMA

payments

Programme 3: Provision of Buildings, Structures and Equipment was under-spent at 5.6 per cent, or by R21.794 million. The under-

spending was mainly due to slow spending under Upgrading and Additions on the Public Works Head office project at 191 Prince

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Alfred Street. Funds in respect of committed projects totaling R22 million were requested to be rolled-over into the 2013/14 financial

year for the above commitments.

2.1.10 Transfer payments

Transfer payments as reflected in the Annual Financial Statement are in respect of payment of Municipal rates to municipalities,

transfer to households in respect of severance packages and Departmental Agencies and Accounts in respect of skills development

levy and workman‟s compensation.

2.1.11 Conditional grants and earmarked funds

The table below shows the actual expenditure incurred in 2012/13 on national conditional grants by the department, against the

2012/13 Final Appropriation.

Summary of conditional grants - Vote 14 - 2012/13

Preliminary Final Adjust- Final Under/ % spent

Actual Appropriation ments Appropriation (Over)

(1) (2) (3) (4) = (2) + (3) (3) = (2) - (1) (1) / (2)

Devolution of Property Rate Funds Grant to Provinces 402,443 551,100 -

-

551,100 148,657 96.8

EPWP Incentive Grant for Provinces 5,292 3,540 3,540 (1,752) 238.8

Total 407,735 554,640 - 554,640 146,905 97.3

R thousand

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The under-spending of R148.657 million on the Devolution of Property Rate Funds Grant to Provinces relates to over funding of

R120.4 million which was surrendered, the late receipt of invoices and other billing challenges in respect of invoices received from

Ethekwini municipality for property rates. The department is confident that the funding in 2012/13 is sufficient to cover these costs,

and will monitor the situation going forward.

The department spent 49.5 per cent more than the budget for the EPWP Integrated Grant for Provinces. The reason for the over-

spending is a result of commitments from 2011/12 relating to the KZN Greening Programme being paid in 2012/13 which is a

partnership led by the Office of the Premier, this overspending will be defrayed with surplus from Goods and Services.

2.1.12 Maintenance and Asset Management Plan

The enactment of GIAMA puts the responsibility on each Accounting Officer to ensure that immovable asset management plans are

developed and utilised for budget purposes, to ensure that the immovable assets are efficiently utilised and maintained. The Asset

becomes surplus to a User if it does not support its service delivery objectives at an efficient level and it cannot be upgraded to that

level.

The Department is currently finalising the condition assessment of all health facilities.

The Department is still awaiting the approval of the KZN Land Administration and Immovable Asset Management Bill, 2010.

As part of GIAMA implementation, the Department has commissioned Eskom approved contractors to undertake a feasibility and

sustainability assessment of all provincial buildings with regard to energy savings. The assessment once received will determine the

level of our critical electricity savings and consumption usage.

2.2 PROGRAMME PERFORMANCE

The activities of the (KZN Public Works Department are organized in the following programmes:

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Programme 3: Provision of buildings, structures & equipment (Operations)

2.2.1 Programme 1: Administration

Purpose: The purpose of this programme is to provide overall management support within the department. The core services

rendered by the Administration programme in 2012-13 were:

Providing strategic leadership and management

Providing support to the Member of the Executive Council

Building a positive corporate culture

Rendering support and advice in terms of:

- Human resource practices and policies;

- All legal matters, security and logistics;

- Effective communication and information management systems.

Ensuring M & E Systems are in place;

Rendering sound financial management services and risk management

The strategic objectives, annual targets and actual performance for 2012 -13 for the administration programme are detailed below:

Programme 1: Administration - Strategic Leadership and Management

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PROGRAMME 1: ADMINISTRATION - STRATEGIC LEADERSHIP AND MANAGEMENT

STRATEGIC

OBJECTIVE PROGRAMME

PERFORMANCE

INDICATOR

ACTUAL PERFORMANCE AGAINST TARGET REASONS FOR VARIANCE

ANNUAL TARGET

2012/2013

ACTUAL

Champion the

Strategic Planning

Process

Strategic Planning session

held by due date

Annual Strategic

Planning Workshop held

by July 2012,

Successful Strategic Planning Review Session was

held by set date.

None

No of Strategy

implementation review

reports by due date

Strategy Mid Term

Review Report by July

2012

The Mid Term Review report was produced and used None

An Annual Performance

Plan tabled by due date

An approved 2013/14

APP ready for tabling by

31 March 2013

The Annual Performance Plan was tabled by due date

set by the Provincial Legislature

none

Effective

participation and

contribution to the

District and

Provincial in the

Operation Sukuma

Sakhe

No of Monthly Regional

Reports to EXCO on

participation and

involvement

48 Regional Operational

Sukuma Sakhe Reports

Regular reports produced and tabled at EXCO. There

has been an improvement in the departmental

participation and contribution to OSS

None

26


STRATEGIC

OBJECTIVE PROGRAMME

PERFORMANCE

INDICATOR


ANNUAL TARGET

2012/2013

ACTUAL

Provide effective

monitoring and

Evaluation Services

% Progress toward the

implementation of an

electronic M & E Tool

encompassing a

Departmental Business

Intelligence System

75% Implementation

including review,

enhancement and pilot

An M & E Framework is in place but consideration to a

practical and effective business solution with linkages

to other initiatives such as the GWEA Project and the

SAS Strategy did not materialise.

Dependence on other similar projects

which encountered circumstantial

delays, beyond our control

Annual Report completed

by due date

2011/2012 Annual Report

completed by August

2012

Annual Report was completed and tabled at Legislature Nil

No of Quarterly

Performance Reports

submitted to Treasury

4 4 Quarterly Performance Reports have been submitted

to Provincial Treasury

Nil

Mid Term Review

completed by due date

2011/2012 Mid Term

Review conducted in

October 2012

Mid Term Review was conducted and a Report

compiled

Nil

Provide and A provincially aligned A provincially aligned The Provincial Communication Strategy is in place and Nil

27


STRATEGIC

OBJECTIVE PROGRAMME

PERFORMANCE

INDICATOR


ANNUAL TARGET

2012/2013

ACTUAL

manage effective

communication

Departmental

Communication Strategy

developed and

implemented

Departmental

Communication Strategy

developed

is being followed.

28

Programme 1: Administration - Corporate Services

PROGRAMME 1: ADMINISTRATION - CORPORATE SERVICES

STRATEGIC

OBJECTIVE PROGRAMME

PERFORMANCE

INDICATOR


ANNUAL TARGET

2012/2013

ACTUAL

To ensure the

reduction of the

vacancy rate

% posts filled on an

approved Human

Resource Provisioning

Plan (HRPP)

100% 78.3% The posts on the HRPP are not fixed and

the target is always changing when new

vacant posts are included. Additional

reasons for the deviation was due to the

high turnover and delays in the vetting

and verification processes

% professional post filled 60% 37.01% Limited pool of suitable candidates to

achieve the target. Service terminations

of professional staff and the movement of

Candidate Professionals to ATE

components, instead of being held

against permanent posts.

To implement

transformation

initiatives

% representation of staff

with disabilities

2% 0.5%

Limited pool of suitable candidates to

achieve the target.

Ensure submission of

financial disclosures by

all Departmental

employees

% Signed disclosure

forms received for SMS

by 31 May 2012

100% compliance 100% compliance

Nil Variance

29

Programme 1: Administration - Finance Programme 1: Administration - Finance

PROGRAMME 1: ADMINISTRATION - FINANCE

STRATEGIC

OBJECTIVE

PROGRAMME

PERFORMANCE

INDICATOR


ANNUAL TARGET

2012/13 ACTUAL

To be fully

compliant with

PFMA &

Treasury

Regulations

and practice

notes

Unqualified audit report

for previous financial

year

Unqualified audit

report.

Department received an unqualified report from

the Auditor General for 2011/2012 financial year

30

Effective

utilization of

the budget

within the

current

financial year

in line with the

cost cutting

measures.

% budget variation on monthly expenditure

within 2% budget variation

As at 31 March 2013, the Department has spent

R1, 133,063 billion which equates to 83.78% of

its Budget with 100.00% of the time passed

(16.22% variance).

Expenditure excluding both conditional grants is

R725, 328 million which equates to 90.92% of its

Budget with 100% of the time passed (9.08%

variance).

The Department is reflecting under spending of

R219,325 million, net effect broken down as

follows:

Compensation of employees R16,724

million

Goods & services R30,258 million

The under-expenditure on Compensation of Employees

of R16, 724 million is attributable to major challenges in

the filling of key Professional posts under Operations as

well as delays in the vetting processes. Funds totaling

R4, 7 million has been requested to be rolled-over for

commitments in respect of grading of posts on salary

levels 9/10, 11/12 as per PSCBC Resolution 3 of 2009.

The under-expenditure on Goods & Services of R30, 258

million is attributable to Agency and Outsourced Services

for Giama due to delays in the tender processes in

acquiring service providers with the appropriate capacity

to undertake conditional assessments as well as the

Fixed Asset Management Tool which was put on hold by

National Public Works. Funds totaling R29 million has

been requested to be rolled-over for Giama (R4 million)

and Fixed Asset Management Tool (R25 million).

31

Interest & Rent on land (R0,006 million)

Financial Assets (write offs) (R0,110

million)

Provinces & Municipalities R150,353

million

Departmental Agencies R0,219 million

Transfers Households (R0,22 million)

Gifts and donations

Capital Infrastructure R22,043 million

The over-spending under Interest & Rent on land of R0,

006 million can be ascribed to finance charges on

Finance Leases.

The department wrote off long outstanding debts to the

amount of R 0, 110 million.

The under-spending of R150, 353 million can be ascribed

to the Devolution of Property Rate Funds Grant for

Provinces (Programme 2), and is due to the late receipt

of invoices from Ethekwini Municipality.

The under-expenditure of R0.219m was largely due to

fewer injury-on-duty claims received than expected,

which is difficult to budget for accurately.

The over-spending of R0, 022 million is a result of

unanticipated staff exit costs and natural attrition.

Gifts and donations: The department donated cash

amounting to R0, 063 million to Michaela Brown R0, 003

million for figure skating, R0, 050 million to Port

Shepstone Karate Club for equipment and R0, 010 million

to Phoenix Schools Sports Clubs for the purchase of

sporting equipment.

The under-expenditure of R22, 043 million is mainly due

to slow progression under the Upgrading and Additions

32

Machinery and equipment

Software and other intangible assets

(R0,134 million)

on the Public Works Head office project at 191 Prince

Alfred Street. The department has requested to roll over

R22,043 million in respect of committed projects from the

2012/13 to the 2013/14 financial year.

Nil

The over-expenditure of R0, 134 million is due to the

payment of Capital Software products.

Close gap

between

second and

first economy

Sector Scorecard implemented

Construction

Charter piloted

DTI is currently reviewing the BBBEE Act and

Sector codes.

A number of transformation initiatives have been

implemented in the interim. These include revising the

tender documents in PM and Construction to include

skilling of employees. Measures consistent with the act

to redress the employment of youth and women.

Application of the SDI (social development initiatives)

whereby landlords must contribute and empower

communities by the provision of bursaries.

Engagements with the NEF (National Empowerment

Fund) to provide start-up capital and mentoring

programmes to emerging contractors. A draft policy in

conjunction with CIDB, Policy Development and SCM to

develop contractors (Enterprise Development) through

33

the identification of key projects that can be ring fenced

as part of the empowerment initiatives. The contractor

Development policy and implementation strategy was

compiled and presented to the economic and social

cluster as well as Cabinet lekogtla and accepted. Once

adopted at cabinet it will be fully implemented.

In addition SANS 1914-5:2002 specifications are being

used to drive the engagement of youth contractors on

specific projects.

To recover

outstanding

claims from

client

departments

% recovery rate per quarter (claims from client departments)

85%

84.5 % (Invoiced R 2,646 Billion and R 2,236

billion recovered)

Nil

Promotion of good

governance

% of financial disclosure

forms received

analysed

100% Financial year 09/10

- 1063 Disclosure forms received and

reviewed.

- 10 cases investigated - finalised

04 cases currently under investigation

(99.7%)

Financial year 10/11

797 Disclosure forms received have been

reviewed (100%)

34


No Disclosure forms received as it was not a

requirement for this financial year


2012/13 Financial disclosure forms are only

due between 1 April 2013 – 30 June 2013

35

2.2.2 Programme 2: Real Estate

Purpose: The purpose of this programme is to provide and facilitate the provision of accommodation and integrated property

management services to clients though planned property acquisition and disposal, optimal utilisation of state fixed assets, land

valuation, maintenance of fixed property register, payment of property rates and integrated service delivery.

The strategic objectives, annual targets and actual performance for 2012 -13 for the Real Estate programme are detailed below:

Strategic Objective Programme Performance Indicator Actual Performance against Target Reason for

variance Annual Target 2012/13 Actual

To provide efficient and

effective management

of Provincial Fixed

Asset Register

Number of properties registered in

asset register recorded by the end of

a financial year

Sector measure

No. of properties in the

asset register recorded

by March 31, 2013

2674 properties

registered in the

name of the

Prov,Govt.

=2558 from DOT

=7038 from H/S not

reconcilled/populate

d for update on FAR.

Updated Fixed Asset Register in line

with GIAMA minimum requirements:

No. & % of facilities in the fixed asset

register updated

3370 facilities

713 updated &

accummulatively

updated 8999

Lack of information

like values,lactions

and title deed

descriptions(unsurve

yed land)

36

Updated Fixed Asset Register in line

with GIAMA minimum requirements:

No. & % of land parcels in the fixed

asset register updated

8761 land parcels in the

Fixed Asset Register

updated

1859 updated &

accommulatively

updated 7368

Lack of information

like values,lactions

and title deed

descriptions(unsurve

yed land)

To take transfer of all

Provincial Immovable

Assets

Number of R293 provincial

Assets transferred from municipalities

to the province

529 10 1083 cases are

waiting registration

at Deeds Office.

No. of South African

Development Trust

Provincial assets transferred from

municipalities to the province

351 Nil Transfer not effected

on unsurveyed land.

No. of surveyed State

Domestic Facilities on Ingonyama

Trust Land Properties transferred

500 Nil Transfer not effected

on unsurveyed land.

37

No. of former RSA properties and

others

Registered into the name of the KZN

Provincial government. (Backlog)

97 391 Over achievement

was due to receipt of

Outstanding Item

28(1) certificates and

duplicate title deeds

No. of former RSA properties and

others

Registered in the name of the KZN

Provincial government (New

applications)

1018 434 Lack of capacity in

two of regional

offices.

No. of Umzimkhulu

Provincial properties registered in the

name of KZN provincial government

89 89 None

To effectively

manage

immovable

assets in

terms of

GIAMA

An approved User Asset Management

Plan (for Public Works) (U-AMP) by

due date

1 U-AMP approved by

June 2012

1 U-Amp was

developed

none

A Custodian

Asset Management

Plan developed (C-AMP) by due date

1 C-AMP developed by

September 2012

1 C-AMP

developed

none

38

To develop building

maintenance plans and

programmes

No. of maintenance plans developed 11 nil The delay in the

appointment of

service providers

To facilitate

the payment

of property

rates

% Expenditure of

municipal

property rates

budget

100%

(557m)

R403 million(73%

expenditure)

Overallocation,

hence R102 million

surrenderred and

R30 million roll-over

to address

2013/2014 accruals.

To satisfy land

and building

needs of

Provincial

Departments

Through property

Acquisition,

No. of

properties

acquired

Sector measure

9 1 projects delayed by

PDA application

All acquisition defined as backlog

completed

26 9 Projects delayed by

PDA application.

39

Disposal, hiring and

letting.

Acquired land for prioritized

provincial district precincts

Engage primary

stakeholders & acquire

land

primary

stakeholders

engaged.

instructions to

acquire land within

these identified

areas has not been

received as yet

No. of properties

disposed of

15 2 delays with obtaining

item 28(1) from

RD&LR.

sites had to be

readvertised up to 3

times as no

responsive bidders

and in some

instances bidders

did not qualify for

finance.

40

All disposals defined as backlog

completed

16 3 delays with obtaining

item 28(1) from

RD&LR.

sites had to be

readvertised up to 3

times as no

responsive bidders

and in some

instances bidders

did not qualify for

finance.

No. of

properties hired

29 54 all health cases were

regularised using a

blanket approval.

No. of properties hired (backlog) 68 150 all health cases were

regularised using a

blanket approval.

No of leases finalized in respect of

state domestic facilities on Ingonyama

Trust Land

60 finalized leases 90 COGTA had

submitted more

TAC's than

anticipated

41

No. of

properties let (backlog cases)

5 8 more cases finalised

than anticipated.

No. of properties let - new cases

(Number of leases concluded in

respect of provincially owned

properties)

Sector measure

2 12 many new tuckshops

were finalised

To promote

economic

transformation

and investment

within Property

Sector.

No. of trainees completing relevant

phase of the Property Incubator

Programme

46 PIP trainees receiving

experiential training.

both practical and

theory training

compelted

Three learners

resigned from the

Programme for

better job offers.

42

To provide effective

client liaison and

management services

No. of monthly progress reports to

clients on property management

12 12 none

To contribute towards

jobs creation

(Massification of

EPWP)

No. of jobs sustained through Izandla

Ziyagezana programme on old sites

196 205 more old sites

identified

No. of jobs created through Izandla

Ziyagezana programme on new sites.

78

142 more new sites

identified

Compliance of

buildings with

accessibility by

people with disabilities

No. of properties assessed for

accessibility by people with

disabilities

400

( Department of Health

buildings)

0 The delay in the

appointment of

service providers

To ensure optimal

utilization of state

properties and hired

office buildings

Number of state owned facilities

audited for space utilization

460 347 audited

properties

Lack of capacity in

one region.

Number of hired

facilities audited for space utilization

108 hired properties

audited

120 all tuckshops audited

as well

43

2.2.3 Programme 3: Provision of buildings, structures & equipment (Operations) Purpose: The main purpose of this programme is the erection and/or acquisition of buildings, structures and engineering works and

the maintenance of buildings to client specifications. The core services are:

Improving integrated service delivery in the provision of buildings and structures;

Creating jobs through the EPWP;

Creating an enabling environment for affirmable business enterprises;

Initiating and co-ordinating strategic partnerships; and

Co-ordinating and aligning operational activities in line with municipal demarcations.

The strategic objectives, annual targets and actual performance for 2012 -13 for the Provision of buildings, structures & equipment

(Operations) programme are detailed below:

44

Strategic Objective

Programme

Performance Indicator

Actual Performance against Target

Reasons for Variance Annual Target

2012/2013

Actual

2012/2013

Implementation of the Annual

Infrastructure Delivery

Improvement Programme (IDIP)

No. of IPIPs Finalised in line with

the Approved IPMP by June

for IDIP Departments Only

03 IPIPs (DoPW,

DoE and DoH)

Finalised and

Approved by

June 2012

03 IPIPs (DoPW, DoE and DoH) for 2012/13

have been Finalised and Approved as follows:

1. DoPW : 29-May-2012

2. DoH : 29-June-2012

3. DoE : 26-July-2012

___

No. of Infrastructure Programme

Management Plans (IPMPs)

received from Non-IDIP

Departments

by March 2013

(Infrastructure Plans)

Sector Measure

05 Infrastructure

Programme

Management Plans

(IPMPs) received by

March 2013

(Infrastructure Plans :

Non-IDIP Departments)

1. Agriculture

2. Social Devt-DSD

3. Transport (DoT)

4. CoGTA

5. Prov Parliament

05 IPMPs (Infrastructure Plans) have been

received from Non-IDIP Departments by

March 2013:

1. Agriculture, Environmental Affairs &

Rural Development

2. Social Development(DSD)

3. Transport (DoT)

4. Cooperative Governance & Traditional

Affairs (CoGTA)

5. Provincial Parliament

___

45

Strategic Objective

Programme




2012/2013

Actual

2012/2013

Approval of Infrastructure

Development Management System

(IDMS) and HR Capacitation Plan

Approval and

Implementation of the

IDMS and HR

Capacitation Plan

by Sept-2012

On the 19th

September 2012, KZN Cabinet

approved the KwaZulu-Natal Infrastructure

Delivery Management System (IDMS) which

incorporates the Capacitation Plan of Public

Works that was developed in respect to the

February 2012 Cabinet Lekgotla.

___

IDIP Workplan Approved IDIP Workplan

Approved by

June 2012

IDIP Workplan in place ___

46

Strategic Objective

Programme




2012/2013

Actual

2012/2013

Forums in place to monitor

Implementation of :

- IDMS

- HR Capacity Plan; and

- IDIP Workplan Progress

IDIP Quality Assurance

report on the

Institutionalization of :

- IDMS

- HR Capacity Plan;

and

- IDIP Workplan

progress by

March-2013

IDMS incorporated in the Capacitation Plan

and the IDIP Workplan in place.

The KZN-IDMS Steering Committee

formed, which is represented by the

Provincial Treasury (Chair), DoH,

DoE,DoPW, and Office of the Premier.

The 1st meeting was held on 24-

November-2012.

The Steering Committee members were

appointed by Accounting Officers of each

participating Dept.

The KZN IDMS Steering Committee has

formed 05 IDMS Focus Groups:

1)Systems and Processes

2)Construction Procurement

3)Operations & Maintenance

4)Institutional Arrangements

& Service Del Agreements

5)OD & HRD

___

47

Strategic Objective

Programme




2012/2013

Actual

2012/2013

DESIGN:

Number of Projects

Registered in WIMS

(Sector Measure)

763 Projects

Registered in WIMS

by March 2013

4, 303 Projects (758 + 1,285+ 1,206+1,054)

registered in WIMS by end March 2013

___

MAINTENANCE:

Number and % of Planned

Maintenance Projects Identified,

Approved, Implemented &

Completed per Client Request

as per IPIP

(Sector Measure

DoE

48 (100%) of Planned

Maintenance Projects

Identified, Approved,

Implemented and

Completed per IPIP

by March 2013

(DoE NEW Projects)

44 (92%) of DoE new Planned Maintenance

Projects Identified, Approved, Implemented

and Completed per IPIP by end of March 2013

Completed projects are:

Southern Region (18)

No Project Names & WIMS No

1 Mlinganiswa Primary School (027203) R&R Pro (100%)

2 Umqatsheni Primary School (027995) R&R Pro (100%)

3 Siyephu Primary School (038732) R & R (100%)

4 Northern Park Primary School (039307) R&R (100%)

5 Khayelihle High School (039299) R & R (100%)

6 Siwelile Primary School (043344) R & R (100%)

7 Grove Intermediate School (039337) R & R (100%)

04 projects not completed are :

1) Prince Mnyayisa High

School (029478 : N/Coast, Zululand)

70%, EoT was received 04-March-13 with errors, still to serve at Bid Comm

2) Lindumthemtho Primary

School (038620 : N/Coast, Zululand)

85%, EoT received on 04-April-13, still to serve at Bid Comm. Rain delays in March 2013. To complete in 2013/14

3) Jongimfundo Primary School (038618 : N/Coast, Zululand)

90%, awaiting approval of VO. To serve at Bid Comm

48

Strategic Objective

Programme




2012/2013

Actual

2012/2013


8 Nani Junior Sec School (038849) R&R-Pro2 (100%)

9 Inkanyezini Primary School (043339) R&R-Pro.2 (100%)

10 Wartburg-Kirchdorf School (039342) R&R Pro. 2(100%)

11 Tex Nybert Jnr Secondary (039310) R&R Pro.2 (100%)

12 Nongqaza Primary School (039333) R&R Pro. 2(100%)

13 Umzintovale Primary School (033172) R&R Pro.2 (100%)

14 Onverwag Combined School (039325) R&R Pro.2 (100%)

15 Enhlanhleni Combined School (043352) R&R (100%)

16 Petros-Jozana Junior Sec (043336) R&R (100%)

17 Northbury Park (032192) R&R-Pro.2 (100%)

18 Hopewell Primary School (043350) R&R Pro.2 (100%)

North-Coast Region (23)

19 Majozini Primary School (016450) R&R (100%)

20 kwaMpofu Primary School (024092) R&R (100%)

21 Bhelebane Junior Primary (034144) R&R Pro.2 (100%)

4) Pro-Nobis Special School (031743 : Midlands, uMzinyathi)

85%, EoT delays.

Ramp is still

outstanding.

To complete by

16-April-2013

49

Strategic Objective

Programme




2012/2013

Actual

2012/2013


22 Mdolomba Junior Secondary School (038606) R&R Pro.2 (100%)

23 Idundubala Secondary School (038601) R&R Pro.2 (100%)

24 Phoziphozi Primary School (030075) R&R (100%)

25 Eqakwini High School (034143) R&R) (100%)

26 Mkhaliphi-High School (029757) R&R Pro.2 (100%)

27 Sawoti Primary School (034526) R&R Pro.2 (100%)

28 Ndabazamanina Secondary (038597) R&R Pro.2 (100%)

29 Kwagcongco Combined Primary School (027768) R&R Pro.2 (100%)

30 Lindelihle Primary School (029558) R&R Pro.2 (100%)

31 Ngomankulu School (038595) R&R (100%)

32 Langelihle School (035070) R & R (100%)

33 King Dinuzulu High School (024923) R&R Pro.2 (100%)

34 Kwamnyayiza High School (018817) R & R (100%)

35 Mfinyeli High School (038615) R & R (100%)

36 Sibhudeni Primary School (038596) R & R (100%)

50

Strategic Objective

Programme




2012/2013

Actual

2012/2013


37 Emthulasizwe School (038607) R & R (100%)

38 Efefe Primary School (021572) R & R (100%)

39 Kwampunzana Primary School (013681) R & R (100%)

40 Sizaminqubeko School (038605) R & R (100%)

41 Mchitheki High School (027693) R & R (100%)

Midlands Region (02)

42 Dukuza Primary School (023547) R & R (100%)

43 Dannhauser: Circuit Inspectors‟ Office (036714) R&R (100%)

eThekwini Region (01)

44 Imbaliyezwe Lower Primary School (039082) R & R Pro.2 (100%)

51

Strategic Objective

Programme




2012/2013

Actual

2012/2013

DoE

14 (100%) of

Existing Backlog on

Planned Maintenance

Projects Identified,

Approved,

Implemented and

Completed per IPIP by

March 2013

(DoE Backlog Projects)

11 (78%) of DoE existing backlog on Planned

Maintenance Projects Identified, Approved,

Implemented and Completed per IPIP by

end of March 2013



No Project Names & WIMS No.

1 Empangeni DoE District Office (046569) R & R (100%)

2 Sthandiwe School (049872) R & R -Pro.2 (100%)

3 Bhobhobho Primary School (046807) R & R (100%)

4 Nomuwa Primary School (043859) R & R (100%)

5 Imizikayifani Primary School (045104) R & R (100%)

6 Gwegwede Primary School (044527) R & R (100%)


7 Kuswag Primary School (035789) R & R (100%)

8 Zandile Junior Primary (036976) R & R (100%)

9 Ingomezulu Comprehensive Primary School (039076) R & R (100%)


10 Sikhukhukhu Primary School (030719) R & R (100%)

11 Deccan Rd Primary School (037035) R & R (100%)


1) Manqindi Junior Primary

School (047408:

N/Coast, uThungulu)

99%, delays due to

court interdict

2) Mvutshini High School

(044529: N/Coast,

uThungulu)

89%, delays due to

non-performance by

contractor. To

complete 2013/14

3) Nonkwenkwana

Secondary School

(043342) Southern,

Sisonke)

98%, to complete

2013/14

52

Strategic Objective

Programme




2012/2013

Actual

2012/2013

DoPW




Implemented and

Completed per IPIP

by March 2013

(DoPW Projects)

05 (100%) of DoPW Planned Maintenance

Projects Identified, Approved, Implemented

and Completed per IPIP by end of March 2013




1 Umzinyathi District Office: Completion-

outstanding work for office & Reception

area extension (040393) (Backlog)

(100%)

2 Midlands Regional Office: Emergency

Water Supply: (046999) (Backlog) (100%)

3 Midlands Regional Office: Upgrades &

Additions to existing covered parking

(047893) (100%)


___

53

Strategic Objective

Programme




2012/2013

Actual

2012/2013

4 LA Building-Ulundi Campus (028951)

(Backlog) (100%)

5 Offices Erf 1026: Admin Campus Ulundi:

(035324) (Backlog) (100%)

ALL Other Client

Departments




Implemented and

Completed per IPIP

by March 2013

(Other Client

Departments Projects)

27 (97%) of ALL Other Client Departments

Planned Maintenance Projects Identified,

Approved, Implemented and Completed per

IPIP by end of March 2013




1 AGRIC Cedara College: Electrical Supply

Upgrade (036478) NEW (100%)

2 AGRIC Cedara College: Receptions

upgrade (044171) NEW (100%)

3 AGRIC Allerton Admin Office. Repairs to

admin buildings roofs (044196) NEW

(100%)

01 project not completed is :

1) Hennie du Plessis

Building, Pinetown 4

Aubrey Road (045824):

eThekwini Metro

95%, project has

been cancelled due

to poor performance

54

Strategic Objective

Programme




2012/2013

Actual

2012/2013

4 AGRIC Head Office - Agriculture &

Environmental Affairs. Repairs to roof:

(044149) NEW (100%)

5 DSD Offices–Social Development

Richmond (025245) NEW (100%)



6 DSD Ndwedwe Service Office (044881)

Backlog (100%)

7 AGRIC Ndwedwe House 17/48 (048386)

NEW (100%)


NEW (100%)

9 CoGTA House of Natalia Rd 10/16

(048148) NEW (100%)

10 AGRIC Maphumulo House 16/126

(047668) NEW (100%)

11 AGRIC Maphumulo House 16/124

(047664) NEW (100%)

12 AGRIC Maphumulo House 16/33 (047665)

55

Strategic Objective

Programme




2012/2013

Actual

2012/2013

NEW (100%)


NEW (100%)

14 AGRIC Maphumulo House 16/125.

(047667) NEW (100%)


NEW (100%)

56

Strategic Objective

Programme




2012/2013

Actual

2012/2013


16

AGRIC Ndwedwe House 17/127 (047671)

NEW (100%)


NEW 100%)


NEW (100%)

19 AGRIC Ndwedwe House 17/76.

(047673) NEW (100%)

20 DSD Chatsworth Service Office

(044495) Backlog (100%)


21 AGRIC Nquthu Offices: Repairs and

Renovations (044657) (Backlog) (100%)

22 AGRIC Pieters District Office: Repair to

roof and minor works (042108)

(Backlog) (100%)

23 DSD Princess Mkabayi (044655)

NEW (100%)

57

Strategic Objective

Programme




2012/2013

Actual

2012/2013



24 AGRIC Hlabisa: Agricultural Offices -

construction of 05 undercover parking

(042990) (Backlog) (100%)

25 AGRIC Jozini Agricultural Offices -:

construct 06 undercover Parkings.

(042991) Backlog (100%)

26 AGRIC Makhathini research Station -

Jozini: construction of 06 undercover

Parking (042992) Backlog (100%)

27 DSD Richards Bay: Van Kempen Build

(006054) (Backlog). (100%)

58

Strategic Objective

Programme




2012/2013

Actual

2012/2013

Maintenance:

% of Allocated Budget spent per

Client request (Adhoc Maintenance

Projects) ALL Provincial

Departments (March 2013)

100% of Allocated

Budget Spent per

Client request per

Adhoc instruction

(Maintenance Projects)

by March 2013

Budget per client departments were spent as follows by March-2013:

1. DoT: 809% (4,360) spent against (539)

2. DoH: 238% (8,235) spent against (28)

3. DoE: 206% (257,430) spent

against (125,000)

4. DoPW: 159% (11,122) spent

against (7,000)

5. Agriculture : 129% (6,956) spent

against (5,400)

6. Arts : 124% (760) spent against (612)

7. Parliament: 100% (2,131) spent

against (2,130)

8. Premier: 100% (1,853) spent

against (1,853)

9. CoGTA: 100% (889) spent against (889)

10. DED: 100% (14) spent against (14)

11. DSD : 88% (4,041) spent against (4,580)

12. Royal Household: No Budget

13. Human Settlement : No Budget

14. Sports & Recreation : No Budget

15. SASSA KZN : No Budget

Target was omitted under

Quarterly targets in the initial

approved departmental APP.

However was included in the

MTEF targets.

The submission on the

revision of APP targets

was approved by the

MEC on 14-Jan-2013.

59

Strategic Objective

Programme




2012/2013

Actual

2012/2013

Maintenance:

Number of Planned Maintenance

Projects completed within

Prescribed Time per IPIP

by March 2013

Sector Measure

95 Planned


completed Within

Prescribed Time

by March 2013

Clients No. of Projects

DoE 48 DoE Backlog

14

DoPW 05 Other Clients

28

TOTAL 95

Project Names Lists under Item 3.4 above

87 Planned Maintenance Projects completed

within Prescribed time by end of March 2013

Client Departments Completed Projects

DoE 44

DoE Backlog 11

DoPW 05

Other Clients 27

TOTAL 87

Lists of projects names under Item 3.4 above

08 remaining projects would

be completed in 2013/14

financial year

Maintenance:

Number of Planned maintenance

projects completed within Budget

as per IPIP by March 2013

Sector Measure

95 Planned


completed Within

Budget by March 2013

Clients No. of Projects

DoE 48

DoE

Backlog 14

DoPW 05

Other

Clients

28

TOTAL 95

Project Names Lists under

Item 3.4 above

87 Planned Maintenance Projects completed

within budget by the end of March 2013

Client Departments Completed Projects

DoE 44

DoE Backlog 11

DoPW 05

Other Clients 27

TOTAL 87

Lists of projects names under Item 3.4 above

08 remaining projects would

be completed in 2013/14

financial year

60

Strategic Objective

Programme




2012/2013

Actual

2012/2013

Construction

(Planned Capital Projects)

Number and % of Projects

completed per IPIP Programme

(Planned Capital Projects per

IPIP per Client)

DoE

271 (100%) of Projects

(73 Classrooms and

198 Toilets) completed

by March 2013

(NEW Projects)

220 (82%) of projects (50 Classrooms and

170 Toilets) completed by end of March 2013



No

Project Names & WIMS No

1 Umgano Junior Secondary School

(039071) U & A -Pro.2 (13 Toilets) (100%)

2 Cothoza Primary School (039703)

U & A- Pro. 2 (05 Toilets) (100%)


3 Intuthuko LSEN School (U & A) (033340)

(08 Cl/rooms & 54 Toilets) (100%)

4 Esiphondweni High School (036369)

U&A-Pro.2 (19 Toilets) (100%)

5 Mtikini Primary School (036367)

U & A -Pro.2 (19 Toilets) (100%)


6 Langkloof Primary School (036351) U & A

Pro.2 (09Classrooms & 20 Toilets) (100%)

7 Jojingwenya Primary School (033426)

U&A - Pro.2 (07Classrooms) (100%)

8 Siyaphambili Primary School (036352)

U&A: 10 Classrooms & 12 Toilets) (100%)

9 Incwaba Junior Primary School (033442)

U&A (07Classrooms & 16 Toilets) (100%)

10 Indanyana Primary School (036357) U & A

(09Classrooms & 12 Toilets) (100%)

51 projects (23 Classrooms

and 28 Toilets) that were not

completed are :

1) Inhlasana Primary

School (027938:

Southern, uGu) –

11 Classrooms &

10 Toilets)

81% progress by end

of March 2013, to

complete 2013/14

2) Mzila Primary School

(036359: Midlands,

Amajuba) –

12 Classrooms &

18 Toilets)

92% progress by end

March 2013, delays

due to contractor

cash-flow problems

61

Strategic Objective

Programme




2012/2013

Actual

2012/2013

79 (100%) of Existing

Backlog Projects

(36 Classrooms and

43 Toilets) completed

by March 2013

(DoE Backlog projects)

55 (70%) of projects (25 Classrooms and

30 Toilets) completed by end of March-2013.




1 Delamuzi Junior Secondary School

(039072) U & A (15 Toilets) (100%)


2 Joel Junior Primary School (033506) U&A

(15 Classrooms & 15 Toilets) (100%)

3 Khethimfundo Secondary School (033502)

U & A (10 Classrooms) (100%)

24 projects (11 Classrooms

and 13 Toilets) not completed

by end March 2013 are at :

1) Engweni Primary School

(040375 : North-Coast,

uMkhanyakude –

11 Classrooms and

13 Toilets)

95% progress by end

March 2013 and

delays due to non-

performance.

EoT received and

still to serve at Bid

committees

62

Strategic Objective

Programme




2012/2013

Actual

2012/2013

DoE

03 (100%)

of Projects

completed by

March 2013

(NEW Schools)

02 (67%) of New School projects completed by

the end of March-2013




1 Gannahoek Primary School (037112)

New – Pro.2 (100%)

2 Khethokuhle Primary School (037110)

New–Pro.2 (100%)

01 New School project not

completed is :

1) Margate Middle School

(037113) : Southern

Region, uGu

75%, project has

been cancelled due

to poor performance

63

Strategic Objective

Programme




2012/2013

Actual

2012/2013

DoH

55 (100%) of Projects

(28 Clinics &

27 Hospitals)

completed by

March 2013

(NEW Projects)

49 (90%) of DoH new projects

(25 Clinics and 24 Hospitals) completed

by the end of March-2013




1 Northdale Hospital (044043): Underpinning (100%)

2 Old Greys Hospital (046928) (100%)

3 Greys Hospital (033082): Renovate to 02nd Floor (100%)

4 St Andrews Hospital (003459): CCSD (100%)

5 St Margaret Hospital (037623): Electrical Upgrade (100%)

6 Fort Napier Hospital (047932) (100%)

7 Mbotho Clinic (026115) (100%)

8 Townhill Hospital (001982): Impala O-Ward (100%)

9 Doris Goodwin Clinic (037337) Electrical Upgrade (100%)

10 East Boom Street Clinic (037620): Electrical Upgrade (100%)

11 Appelsbosch Hospital (040705): CCSD & Theatre (100%)

12 Richmond Clinic (037152): Electrical Upgrade (100%)

06 projects (03 Clinics and

03 Hospitals) not completed

are:

1) Manguzi Hospital

(009498: N/Coast,

uMKhanyakude

75% progress,

20-days EoT

pending approval.

To complete by

June-2013

2) Ndlozana Clinic (026374:

N/Coast, Zululand

95%, EoT approved.

To complete by

08-May-2013

64

Strategic Objective

Programme




2012/2013

Actual

2012/2013


13 Townhill Hospital (037661): Sewer (100%)

14 Songozima Clinic (046978) (100%)

15 Umgeni Hospital (044466): Saamstamp (100%)

16 Ludimala Clinic (044928) (100%)

17 Townhill Hospital (036116): Electrical Upgrade (100%)

18 Christ the King Hospital: (047813) Refurbishment of 01 Lift (100%)

19 Christ the King Hospital (024506): Relocate Accommodation (100%)

20 Pholela CHC (Clinic) (046979) (100%)

21 Mahlutshini Clinic (047262) (100%)


22 Cornfields Clinic (047726) (100%)

23 Injisuthi Cli (044152) (100%)

24 Madadeni Clinic No.7 (035729) (100%)

25 Dundee Hospital (044022) (100%)

26 Mbabane Clinic / Sukuman Clinic (044151) (100%)

27 Charles Johnson Memorial Hospital (044017): New-Seclusions (100%)

28 Greytown Hospital (044023) (100%)

29 Greytown Forensic Mortuary – Hospital (045985) (100%)

30 Elandskraal Clinic (046830) (100%)

3) Nkandla Hospital

(011778: N/Coast,

uThungulu

85%, EoT approved.

To complete

09-May-2013

4) Hartland Clinic (043916:

N/Coast, Zululand

80%, to complete end

April-2013

5) Stedham Clinic (049929:

N/Coast, Zululand

70%, project

cancelled.

Completion contract

tender closed 12-

April-2013

65

Strategic Objective

Programme




2012/2013

Actual

2012/2013


29 Greytown Forensic Mortuary – Hospital (045985) (100%)

30 Elandskraal Clinic (046830) (100%)

31 Charles Johnson Memorial Hospital (046900): Kitchen (100%)

32 Ladybank Clinic (044051) (100%)


33 Thalaneni Clinic (017780) (100%)

34 Mbongolwane Hospital (044481) (100%)

35 Nkandla Hospital (046898) (100%)

36 Umbonambi Clinic (031207) (100%)

37 Mseleni Hospital (013658) (100%)

38 Babanango Clinic (035179) (100%)

39 Mosvold Hospital (043919) (100%)

40 Ekombe Hospital (043912) (100%)

41 Lomo Clinic (017767) (100%)

42 Mathungela Clinic (031166) (100%)

43 Nogajuka Clinic (035180) (100%)

44 Nkanini Health Centre (049929) (100%)


45 Chibini Clinic(034221:100%

46 Ndulinde Clinic (026624) 100%

47 Wosiyane Clinic (030121) (100%)

48 Macambini Clinic (017775) (100%)

49 Wentworth Hospital (036768) (100%)

6) Prince Mshiyeni

Memorial Hospital

(035948: eThekwini

eThekwini Metro

93% progress,

to complete by

end of April-2013

66

Strategic Objective

Programme




2012/2013

Actual

2012/2013

21 (100%) of Existing

Backlog (10 Clinics

and 11 Hospitals )

completed by

March 2013

(DoH Backlog Projects)

20 (96%) of DoH existing backlog projects

(10 Clinics and 10 Hospitals) completed by

the end of March-2013




1

Mbuthisweni Clinic (031195) (100%)

2 Fort Napier Hospital (044047):

Kitchen (100%)

3 Port-Shepstone Hospital- core block-

(001883) (100%)

4 KwaJali Clinic (044463) (100%)

5 Bhobhoyi Clinic (046605) (100%)

6 Murchison Hospital (044042):

Sewer (100%)

7 Gcilima Clinic (040702) (100%)

01 Hospital project not

completed is :

1) Catherine Booth

Hospital (043909: North-Coast, Zululand

99%, VO in place and

the additional

funding pending

approval from DoH

67

Strategic Objective

Programme




2012/2013

Actual

2012/2013



8 Nhlabane Clinic (037968) (100%)

9 Phelindaba Clinic (044411) (100%)

10 Thokozani Clinic (046591) (100%)

11 Bhekabantu Clinic (031157) (100%)

12 Mbongolwane Hospital (043917) (100%)

13 Eshowe Hospital (043914) (100%)

14 Isiboniso Clinic (037508) (100%)

15 Eshowe Hospital (047304) (100%)

16 Vryheid Hospital (043923) (100%)

17 Manguzi Hospital (043703) (100%)


18 Niemeyer Memorial Hospital: Upgrade

Sewerage system (044032) (100%)


19 Thafamasi Clinic – Additions

(045102) (100%)

20 Addington Hospital (044010) (100%)

68

Strategic Objective

Programme




2012/2013

Actual

2012/2013

DoH:

Conditional Grant

15 (100%) of

Revitalization

Projects completed

by March 2013

06 (40%) of DoH Conditional Grant

Revitalization Projects completed by

end of March-2013




1 King Edward VIII Hospital (033856): Construction of roofs in "I" & "N" blocks (100%)

2 King Edward VIII Hospital (047063): Unblocking and repair of storm water & sewer pipes (to include sub-drainage) (100%)


3 Edendale Hospital (042654): Demolition of the existing Kwa-Hlengabantu Step-down Hospital (100%)

4 Edendale Hospital (045651): Sewerage & Water Upgrade (100%)


5 Ngwelezane Hospital (042126): New Psychic Out-Patient Clinic (convert the Existing Psychiatric Wards) (100%)

6 Ngwelezane Hospital (042127) New Therapy Department (100%)


1) King George V Hospital

(038333: eThekwini Metro

84%, EoT approved, water ingress onto the site is being urgently attended to

2) King George V Hospital (035602: eThekwini Metro

80%, slow progress by contractor resulted

in delays.

3) King George V Hospital (038335: eThekwini Metro

44%, slow progress by contractor resulted in delays

4) King George V Hospital (017606 :eThekwini Metro

85%, delays due to poor performance by contractor. Contractor still on penalties

69

Strategic Objective

Programme




2012/2013

Actual

2012/2013

5) King George V Hospital (030298:eThekwini Metro

62%, decision on ventilation installation awaited from DoH

6) Madadeni Hospital (034721: Midlands, Amajuba

25%, due to unavailability of materials & SCM procedures on award

7) Edendale Hospital (045649): Southern, uMgungundlovu

12%, poor performance by contractor. Contractor placed on terms.


45%, due to excessive inclement weather and unexpected underground services


40%, additional scope requested by DoH and unexpected underground services

70

Strategic Objective

Programme




2012/2013

Actual

2012/2013

DoPW

01 DoPW Office:

10% construction

complete by

March 2013

(Multi-Year Project)

(191 Prince Alfred

Building)

01 DoPW Office (191 Prince Alfred Building:

(045850) reached 11% construction complete

by end of March 2013

R30.6million was spent out of R163.1million

budget by end of March 2013.

___

Construction


Number of Projects Completed

within prescribed Time per IPIP

Programme (Capital Projects)

Sector Measure

DoE

12 Projects completed

within Prescribed Time

by March 2013

10 DoE Projects completed within prescribed

time by the end of March 2013




1 Umgano Junior Secondary School

(039071) U & A -Pro.2 (100%)

2 Cothoza Primary School (039703)

U&A -Pro.2 (100%)


1) Inhlasana Primary

School (027938:

Southern, uGu) –

11 Classrooms &

10 Toilets)

81%, to complete

2013/14

2) Mzila Primary School

(036359: Midlands,

Amajuba) –

12 Classrooms &

18 Toilets)

92%, delays due to

contractor cash-flow

problems

71

Strategic Objective

Programme




2012/2013

Actual

2012/2013


No Project Names & WIMS No.

3 Intuthuko LSEN School U&A (033340)

(08 Classrooms and 54 Toilets)

4 Esiphondweni High School (036369)

U & A - Pro.2 (19 Toilets)

5 Mtikini Primary School (036367)

U&A -Pro.2 (19 Toilets)


6 Langkloof Primary School (036351)

U&A (09Classrooms & 20 Toilets)

7 Jojingwenya Primary School (033426)

U&A (07Classrooms)

8 Siyaphambili Primary School (036352)

(10 Classrooms and 12 Toilets)

9 Incwaba Junior Primary School (033442)

U&A (07 Classrooms and 16 Toilets)

10 Indanyana Primary School (036357)

U&A (09 Classrooms and 12 Toilets)

72

Strategic Objective

Programme




2012/2013

Actual

2012/2013

DoH



by March 2013

(Projects list under

Item 3.7)

49 DoH Projects completed within prescribed

time by the end of March 2013

06 projects not completed are

planned for completion in the

2013/14 financial year.

DoH: Revitalization



by March 2013


Item 3.7)

06 DoH Revitalization Projects completed

within prescribed time by end of March 2013




Other Clients



by March 2013


Item 3.4)

27 Other Clients Projects completed within

prescribed time by end of March 2013

01 project not completed is



73

Strategic Objective

Programme




2012/2013

Actual

2012/2013

Construction


Number of Projects Completed

within Budget per IPIP Programme

(Capital projects)

Sector Measure

DoE


within Budget by

March 2013

Project list under

Item 3.8 above

10 DoE Projects completed within budget

by the end of March 2013




DoH


within Budget by

March 2013

Project list under

Item 3.7 above

49 DoH Projects completed within budget

by the end of March 2013




DoH: Revitalization


within Budget by

March 2013

Project list under

Item 3.7 above

06 DoH Revitalization Projects completed

within budget by end March 2013




Other Clients


within Budget by

March 2013

Project list under

Item 3.4 above

27 Other Clients Projects completed within

budget by end of March 2013

01 project not completed is



74

Strategic Objective

Programme




2012/2013

Actual

2012/2013

Construction


% of Allocated Budget

spent by March 2013

(ALL Provincial Departments)

100% of R2,5Billion

(Allocated Budget)

spent by

March 2013

105% (R2,450,082billion) spent by end

March 2013 against the total allocation budget

of R2,331.711billion

Over expenditure due to the

following Client Departments:

DoE: due to allocation less

than budget of committed

projects.

DSD: due to Princess Mkabayi

& Newcastle School of

Industries under-projections.

DEDT: due to N/Coast

Eshowe Taxi Rank project,

which spent R317,000.00

more than the allocated

budget on design fees.

Implementation of Intervention

Strategies on Delayed and Non-

Performing Projects

An Intervention Strategy to

avoid Delayed and

Non-Performing Projects Developed

and Implemented by due date

An Intervention

Strategy

Developed by

March 2013

An Intervention strategy was not developed by

end March 2013, however Procedural

(including legal) process for managing

contractors on site was reviewed.

Revised KZN Public Works Contract

Administration Standard Operating Procedure

(SOPs) will help to develop the strategy which

will provide mechanisms for early warning on

Contractors‟ performance, that includes

monitoring and evaluation methodology, with

the emphasis on improved site management,

reporting and feedback.

Operations & Legal Services had numerous

meetings to clearly articulate and map the

process, minimize gaps, show improvement

specifically on roles and responsibilities across

the value chain.

Operations concluding the

amendment to the SOPs.

Final adoption is now required.

75

Strategic Objective

Programme




2012/2013

Actual

2012/2013

To promote Indigenous

construction methods

No. of Alternative Construction

Methods Projects Implemented

75 ECD Projects

Implemented in terms

of Alternative

Construction Methods

by March 2013

73 ECD Projects were implemented in terms of

Alternative Construction Methods by the

end of March-2013




1 Isikhalisethu Primary School (050161) New ECD (100%)

2 Kwamakhonyeni Primary Sc (050166) New ECD (100%)

3 Magugu Primary School (050176) New ECD (100%)

4 Mnyame Primary School (050195) New ECD (100%)

5 Sihangwana Primary School (050314) New ECD (100%)

6 Ugedla Junior Primary School (050321) New ECD (100%)

7 Donsintaba Primary School (050149) New ECD (100%)

8 Hlanganani Primary School (051610) New ECD (100%)

9 Khonzindaba Primary School (050165) New ECD (100%)

10 Chathazana Junior Primary School (050148) New ECD (100%)

11 Gwegwede Primary School (034920) New ECD (100%)

12 Itshelejuba Primary School (050162) New ECD (100%)

02 projects not completed by

end March 2013 are :

1) Bhekeni Junior Primary

School (049118,

North-Coast,

uThungulu)

25%, project was

deferred to 2013-14

financial year due to

the wash-away of an

access bridge which

prevented the

contractor from

getting to site.

2) Mkhabela Primary

School (050190,

Southern,

uMgungundlovu)

95%, due to rain

delays. The final

inspection on 19-

April-2013 to certify

practical completion.

76

Strategic Objective

Programme




2012/2013

Actual

2012/2013


13 Qwambokwethu Primary School (050952) New ECD (100%)

14 Gubhela Primary School (050154) New ECD (100%)

15 Hlabisa Jnr Primary School (050155) New ECD (100%)

16 Lethimfundo Primary School (050170) New ECD (100%)

17 Ivukayibambe Primary (050163) New ECD (100%)

18 Landulwazi Primary School (050324) New ECD (100%)


19 Sibongujeza Primary School (050634) New ECD (100%)

20 Masheshisa Primary School (050189) New ECD (100%)

21 Maria Trost Junior Primary (050186) New ECD (100%)

22 Shalom Primary School (050303) New ECD (100%)

23 Broteni Primary School (050146) New ECD (100%)

24 Ridge Primary School (050230) ECD (100%)

25 Stepmore Primary School (050318) New ECD (100%)

26 Pheshe Primary School (050228) ECD (100%)

77

Strategic Objective

Programme




2012/2013

Actual

2012/2013


27 Sidunge Primary School (050311) New ECD (100%)

28 Copesville Primary School (050632) New ECD (100%)

29 Khanyisani Primary School (050164) New ECD (100%)

30 Kwasikhunyane Lower Prim (050168) New ECD (100%)

31 Asiqhubeke Primary School (050141) New ECD (100%)

32 Nhlayenza Junior Primary 050215) New ECD (100%)

33 Qhamukile Primary School (048735) New ECD (100%)

34 Nobanda Primary School (050216) New ECD (100%)

35 Siyamu Jnr Primary School (050316) New ECD (100%)

36 Dweshula Primary School (050150) New ECD (100%)

37 St Paul Primary School -Franklin

(050317) New ECD (100%)


38 Blackbank Primary School (050144) New ECD (100%)

39 Mthaniya Primary School (050206) New ECD (100%)

40 Bhekuzulu Primary School (050143) New ECD (100%)

78

Strategic Objective

Programme




2012/2013

Actual

2012/2013


41 Usizolwethu Primary School (050322) New ECD (100%)

42 Ngcaka Primary School (050214) New ECD (100%)

43 Manyonyo Lower Primary (050185) New ECD (100%)

44 Msitha Primary School (050204) New ECD (100%)

45 Mqamu Primary School (050201) New ECD (100%)

46 Manduluza Primary School (050179) New ECD (100%)

47 Obonjaneni Primary School (050226) New ECD (100%)

48 V.S Zulu Primary School (050951) New ECD (100%)

49 Thembalihle Primary School (Estcourt) (050320) New ECD (100%)

50 Mziwenkosi Primary School (050211) New ECD (100%)

51 Ingwe Primary (050160) New ECD (100%)


52 Madundubala Primary Sch (050171) New ECD (100%)

53 Sikhonyane Primary School (050315) New ECD (100%)

79

Strategic Objective

Programme




2012/2013

Actual

2012/2013

54 Ikhohlwa Primary School (050158) New

ECD (100%)


55 Emlandeleni Primary School (050153) New ECD (100%)

56 Ntendeni Primary School (050222) New ECD (100%)

57 Ndwedwe Junior Primary School (050213) New ECD (100%)

58 Mantingwane Primary School (050181) New ECD (100%)

59 Mnawe Junior Primary School (050192) New ECD (100%)

60 Mpumlwane Primary School (050198) New ECD (100%)

61 Maphumuzana Primary School (051035) ECD (100%)

62 Brooklyn Heights Primary School (050145) New ECD (100%)

63 H.P Ngwenya Primary School (050157) New ECD (100%)

64 Vumokuhle Jnr Primary School (050323) New ECD (100%)

65 Muzomuhle Primary School (050209) New ECD (100%)

66 Sandakahle Primary School (050231) New ECD (100%)

67 Nyakana Primary School (050224) New ECD (100%)

80

Strategic Objective

Programme




2012/2013

Actual

2012/2013

68 Hlanganani Primary School (050156)

New ECD (100%)


69 Imbaliyezwe Lower Primary School (050159) New ECD (100%)

70 Thandimfundo Primary replaced by ST Lawrence (050950) New ECD (100%)

71 Bhekilanga P replaced by Peaceville Primary School (050124) (100%)

72 Embokodweni Pri replaced by Matabetulo Primary School (050152) New ECD (100%)

73 Bahlebonke Primary School (050142) New ECD (100%)

No. of

Energy Saving Projects

Implemented

01

Project

piloted by

March 2013

(Ixopo)

The project was cancelled at 95%

construction.

Contractor had business financial risk

problems and company was liquidated.

Project has been removed

from APP 2012/2013 targets

going forward.

81

Strategic Objective

Programme




2012/2013

Actual

2012/2013

Operation Sukuma Sakhe Ongoing Participation in the

Implementation of the Operation

Sukuma-Sakhe

Ongoing Participation

in the Operation

Sukuma-Sakhe

The component participates in ongoing

activities of the Operation Sukuma-Sakhe.

___

Promotion of Labour Intensive

Construction Methods through

Expanded Public Works‟

Programme

No. of EPWP Employment

Opportunities (Work Opportunities;

Actual Jobs; FTE‟s)

created by due date

28 000

Work Opportunities

created by March 2013

214, 306 Work Opportunities were

created from April 2012 to March-2013

Breakdown is as follows:

REGIONS Work Opportunities

created (March-2013)

North-Coast 113 449

Southern 38 837

eThekwini 32 626

Midlands 29 394

TOTAL 214 306

Quarterly Target was

achieved.

W.O (Work Opportunities) are

based on a month to month

calculation which is number of

times a person has had an

opportunity to earn a living

wage.

This opportunity is then

counted every time a person

earns a wage from a project.

As a result the W.O is based

on the number of living wages

paid to an individual.

82

Strategic Objective

Programme




2012/2013

Actual

2012/2013

4 000

Actual Jobs created

by March 2013

8, 855 actual Jobs (inclusive of existing

and the new beneficiaries) were created

from April 2012 to March-2013


REGIONS Actual Jobs created

(March-2013)

North-Coast 3 843

eThekwini 2 253

Southern 1 602

Midlands 1 157

TOTAL 8 855

Over-achievement is based on the fact that

2,343 beneficiaries were employed last

financial year 2011/2012 and were also on site

in the first month of the 2012/2013 financial

year. As a result they were included in our


achieved.

Beneficiary data_ download

from WIMS count as validation

proof of the actual people

employed on the projects.

Validated output is not only

based on the monthly reports

but on what has been

reported/ captured on WIMS

EPWP screens for that

particular period.

83

Strategic Objective

Programme




2012/2013

Actual

2012/2013

statistics.

700

FTE‟s created

by March 2013

2, 753 FTE‟s were created from April 2012

to March-2013


REGIONS FTE’s created (March-2013)

North-Coast 1 503

Southern 419

Midlands 374

eThekwini 457

TOTAL 2 753


achieved.

FTEs are based on a month to

month calculation which

focuses more towards keeping

the beneficiaries on site for

longer periods.

The longer the period spent on

site will mean that Work

Opportunity created is more

sustainable and can be

equated to the Full Time

Employment.

As a result there is no

validated proof for W.O as

FTEs are based on

calculations.

84

Strategic Objective

Programme




2012/2013

Actual

2012/2013

Effective Utilization of EPWP

Integrated Grant

% Expenditure of EPWP Integrated

Grant allocated to the

Implementation of the KZN

Integrated Greening Programme

100% Expenditure

realized by

March 2013

100% Expenditure realized by the end of

March-2013

This equates to the total amount of

R5, 731, 251 of Integrated Grant, spent to

implement KZN Integrated Greening

Programme against the total budget of

R5, 750, 000.

Funding remains a challenge,

as allocated budget of

R1,5 Million is not sufficient

to sustain beneficiaries till end

of Financial year.

Department identified

additional amount of

R2, 242,000 internally to top

up the EPWP Integrated Grant

of R1, 508million. In total

Department of DoPW has

contributed R3, 750million to

the Greening Programme.

DoPW has received additional

R2 million from Prov Treasury

for implementation of KZN IGP

this fin-year bringing IGP

funding to R5, 750 mil for the

implementation of the

Programme.

85

Strategic Objective

Programme




2012/2013

Actual

2012/2013

To empower Youth through

National Youth Service (NYS)

programme and priority skills

Number of NYS Learners trained

on Accredited Modules

70 Learners Trained

on Accredited Modules

by March 2013

(In-Service and

Classroom Training)

100 learners commenced the classroom

training on the 04-February-2013 and

11-February-2013 in all the regions.

Funding still remains a challenge, as the

funding from Office of the Premier (OTP)

is not adequate for the implementation

of NYS Programme.

Letter was received from

OTP giving the Department

directive to commence with

recruitment process for

NYSP Phase 3.

NYS PSC was established

18-January-2013. The

Programme is officially

registered with NYDA.

100 learners were selected

to attend induction, which

was conducted 13-Aug to

31-August-2012 for all

Regions.

Classroom training was

done on 04-February-2013

86

Strategic Objective

Programme




2012/2013

Actual

2012/2013

and 11-February-2013 in

all Regions.

To implement Partnership

Projects

Number of Partnership Projects

implemented

02 Partnerships

Projects jointly

implemented on the

Contractor

Development

Programme by

March 2013

01 Partnership programme (CETA Skills

Development Programme) achieved and

jointly implemented by the end of March 2013.

The remaining partnership programme (i.e.:

National Empowerment Fund (NEF)

Partnership Programme to be implemented

in the 2013/2014 Financial year. Currently

waiting for the signing of the MoU Agreement

by both parties.

Only 01 project has been

targeted for implementation in

2013/14 going forward, due to

challenges of securing

partnerships.

87

3. ANNUAL FINANCIAL STATEMENTS

3.1 REPORT OF THE AUDIT & RISK COMMITTEE ON

VOTE 14 – PUBLIC WORKS

The KwaZulu-Natal Provincial Audit & Risk Committee is pleased to present its report

for the financial year ended 31 March 2013.

Provincial Audit & Risk Committee Members and Attendance

The Provincial Audit and Risk Committee (the PARC) consists of the members listed

hereunder. The PARC is split into three (3) Cluster Audit & Risk Committees (the

CARC) which consists of members of the PARC; is responsible for the Governance &

Administration, Social and Economic Clusters respectively and reporting into the PARC.

The Chairman of the PARC is also the Chairman of the different CARCs and attends all

CARC meetings. The CARC and the PARC are required to meet at least four times and

two times respectively in a financial year. During the financial year ending 31 March

2013, a total of sixteen meetings (16) were held, namely, two (2) PARC meetings, twelve

(12) CARC meetings, and two (2) special meetings. Members attended the meetings as

reflected below:

Surname &

Initial

PARC CARC Special Total no.

of

Meetings

Total no. of

Meetings

Attended No. of

Meetings

Held

Attended No. of

Meetings

Held

Attended No. of

Meetings

Held

Attended

Ms T Tsautse (Chairman)

2 2 12 12# 2 2 16 16

Ms M Mothipe 2 2 4 4* 2 2 8 8

Ms N Jaxa 2 2 4 4* 2 2 8 8

Mr L Mangquku 2 2 4 4* 2 2 8 8

Mr T Boltman 2 2 4 4* 2 2 8 8

Mr F Docrat 2 2 4 4* 2 2 8 8

Mr V Naicker 2 2 4 2* 2 2 8 6

* - 4 Meetings per cluster were held

# - Chairman attends all CARC meetings

Provincial Audit & Risk Committee Responsibility

The Provincial Audit and Risk Committee reports that it complied with its responsibilities

arising from the Public Finance Management Act, No.1 of 1999 (PFMA), Treasury

88

Regulations, including any other statutory and other regulations. The Provincial Audit

and Risk Committee also reports that it adopted appropriate formal terms of reference as

its Provincial Audit and Risk Committee Charter, regulated its affairs in compliance with

this charter and discharged all its responsibilities as contained therein.

The Effectiveness of Internal Control

The systems of internal control are the responsibility of the department’s management

and are designed to provide effective assurance that assets are safeguarded and that

liabilities and working capital are efficiently managed. In line with the requirements of

the PFMA and the principles of the King III Report on Corporate Governance, the

Internal Audit Function provides the Provincial Audit and Risk Committee and the

departmental management with assurance that the systems of internal controls are

appropriate and effective. This is achieved by means of the risk management process, as

well as the identification of corrective actions and suggested enhancements to the

controls and processes. From the various reports of the Internal Auditors; and the Report

and Management Letter of the Auditor-General on the Annual Financial Statements, it

was noted that the systems of internal control and financial internal controls were not

effective and inadequate in certain areas for the entire year under review as control

deficiencies were detected in the following significant areas:

Supply Chain Management

Asset Management

Human Resource Management

Fleet Management

Property management

Implementation of the Government Immovable Asset Management Act

Provision of building, structures & equipment

Information Technology General & Application Controls

The quality of “In Year Monitoring” and monthly / quarterly reports submitted in

terms of the Treasury Regulations and the Division of Revenue Act

The Provincial Audit and Risk Committee was satisfied with the content and quality of

monthly and quarterly reports prepared and issued by the Accounting Officer and the

department during the year under review except for underspending of the budget by the

Department.

Audit of Performance Information

The monitoring of the department’s performance is a key function of the executive

management of the department. The Provincial Audit & Risk Committee has no direct

line of responsibility over the department’s performance. However, the Provincial Audit

89

and Risk Committee is responsible for ensuring, principally through the Internal Audit

Function that the systems of performance management, measurement and reporting; as

well as the systems of internal control that underpin the performance management

framework of the department, remain robust and are reviewed routinely in the internal

audit plans.

The Committee has accepted the responsibility of ensuring that adequate reporting on

performance information is in line with its mandate and charter.

The Committee reviewed the reports relating to Performance Information and noted no

material deficiencies.

Internal Audit Function

The Provincial Audit & Risk Committee provides oversight and monitors the activities of

the Internal Audit Function. Consequently, the Committee is able to report on the

effectiveness and efficiency of the function.

The function was effective during the period under review and there were no unjustified

restrictions or limitations. The Committee will in the forthcoming year, monitor progress

to ensure that the Internal Audit Function continues to add value to the department and

achieves its optimal performance.

Risk Management Function

Risk Management is a proactive discipline that is intended to provide reasonable

assurance that the department will achieve its objectives.

During this financial year, the Committee reviewed risk reports of the department on a

quarterly basis, with particular focus being on:

- Reviewing the Risk Maturity Gap Analysis Report as compiled and presented by

the PIAS to determine if this department has key structures and policies to take

over its risk management responsibilities.

The result of this analysis was discussed with the department’s management, and

the department was advised to build its internal risk management capacity

through, among other things, revising the reporting lines of the Risk Manager

from reporting to the Chief Financial Officer to reporting to the Head of

Department.

- Reviewing progress report on the implementation of risk mitigation plans. The

department was urged to finalise the outstanding risk mitigation plans and to

update its risk register with completed risk mitigations plans and emerging risks.

90

Other Governance Issues

As part of its governance responsibilities, the Committee also monitors the fraud

prevention strategies that have been developed and implemented by provincial

departments, and these responsibilities include monitoring the implementation of

recommendations arising from forensic investigations.

During the period under review, the Committee noted that the department had 8

investigations that were completed, all of which were conducted by the Provincial

Treasury’s Internal Audit Function.

The department was urged to implement recommendations arising from the completed

investigation, and to provide the Internal Audit Function with a detailed list of all other

investigations being conducted internally or by other relevant authorities.

Evaluation of Financial Statements

The Provincial Audit and Risk Committee reviewed the Annual Financial Statements of

the Department, as well as the Auditor General’s management report together with

management’s response thereto. The Provincial Audit and Risk Committee concurs and

accepts the Auditor-General’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 Auditor-General.

__________________________________________

Chairperson: Provincial Audit & Risk Committee

Date: 31 July 2013

91

3.2 Report of the Accounting Officer

3.2.1 General Review of the State of the Financial Affairs

3.2.1.1 Key Priorities

Commitment, willingness and the correct attitude always play a very critical role

in the implementation and delivery of the services to the people. The skills and

competencies that each individual possesses are fundamentally complimented

and enhanced by the commitment, the will and the correct attitude.

Consequently, the combination of appropriate skills, competencies as well the

willingness, commitment and attitude of the public servants go a long journey in

delivering and meeting the basic needs of our society. The implementation of

government agenda indisputably and certainly requires the combination of these

attributes.

The operations and activities within the built environment and property

management sectors are always complicated and continuously demand

consistency and new thinking to keep up with the prevailing trends. In 2012/2013

financial year the Department of Public Works continued to shape itself and

delivered quality work in terms of infrastructure delivery and property

management services in line with its mandate and its 2010-2015 Strategic Plan.

On the infrastructure front, 75 classrooms and 200 toilets have been delivered. A

total amount of R2.45 billion has been spent on infrastructure. Within the

Expanded Public Works Programme, 214 306 Work Opportunities equating to

8,855 actual jobs and 2,753 FTEs, were created, thus the Department assisting

in positively contributing towards the reduction of the troika problem of poverty,

unemployment and inequality in the province and the country. In addition, we

have contributed towards addressing the issue of scarce skills by awarding 10

external bursaries and 16 internal bursaries in 2012/2013. 7 external graduates

completed their studies in 2012/2013.

Within the property management sector, we have registered 2674 properties in

2012/2013 and accumulatively there are now 13 268 properties registered in the

name of the Government of the Province of KwaZulu-Natal. Further we have

92

updated 8999 facilities and 7368 land parcels on the Fixed Asset Register in the

line with the GIAMA Requirements.

With regard to the implementation of the Government Immovable Asset

Management Act in the KZN province, we are pleased to indicate that we have

conducted and finalized condition assessments to all 626 provincial owned

Administrative Buildings. The findings have also been communicated to all the

relevant user departments for maintenance budgeting purposes. We are currently

proceeding with condition assessments on health facilities, where clinics are

being prioritized.

The department is also pleased to record an improvement in the quality of User –

Asset Management Plans received from the user departments and this has

helped this department in the development of the Custodian – Asset

Management Plan for the province.

3.2.1.2 Spending Trends

The budget allocation to the Department‟s vote increased by 11.5% from

R1,212,970,000 in 2011/2012 to R1,352,388,000 in 2012/2013.

At the end of the 2012/2013 financial year, the Department had spent

R1,133,311,000 or 83.8% of its budget. The under-expenditure of the budget

allocation was due to the following:

R150 million, in terms of property rates. The funding provided to the Province for

the payment of property rates, was based on historical payments. In prior years,

the Province has made payment for arrear payments and previously disputed

accounts. This resulted in an over-funding in terms of property rates for the

2012/2013 financial year. It must be noted that the Department underwent

extensive engagement with municipalities and all invoices presented to the

Department were paid, however a number of municipalities failed to provide all

93

invoices before the end of the financial year. To this end, the Department has

applied for a rollover of funds to the amount of R30 million.

R25 million which was in respect of the procurement of an integrated asset

management system. Whilst the Department was at a very advanced stage of

procuring such a system, this process was placed on hold at the request of

National Public Works.

R22 million as a result of delays on the Head Office Capital Infrastructure project.

A roll-over of that amount has been requested for the integrated asset

management system and committed capital infrastructure projects.

1. Services Rendered By the Department

In terms of its mandate, the department provides provincial client departments

with the following building infrastructure and property management services:

The construction of public buildings, involving the physical erection or major

improvement in respect of infrastructure in the building environment;

The maintenance of public buildings and land, including performing the

necessary work to keep the required level of operation;

The acquisition of buildings and land to meet the accommodation and

service facility needs of provincial government departments; and

The alienation of public buildings and land, including the disposal of fixed

assets by selling, demolition, exchanging and donation.

The Department bears the cost of providing the administrative, professional and

technical support from its budget and it recovers the cost of providing building

infrastructure services from the client departments on a cost basis. The

Department therefore does not operate a tariff policy.

Detailed analysis of expenditure on client departments for 2012/13 shows that

services are provided to all the client departments throughout the province.

94

CLIENT EXPENDITURE FOR 2012/2013

Infrastructure

OBJECTIVE

ETHEKWINI

REGION

R,000

MIDLANDS

REGION

R,000

NORTH

COAST

REGION

R,000

SOUTHERN

REGION

R,000

TOTAL

R,000

Arts and Culture 397 0 6 357 760

Agriculture 2 737 4 365 45 269 28 124

80,495

Economic Dev 0 0 931 0

931

Education 198 337 184 221 435 319 198 218

1,016,095

Health 221 673 85 798 267 890 202 431

777,792

Health – Conditional

Grant 120 148 8 485 194 622 93 246

416,501

Royal Household 0 0 0 0

0

Human Settlement 0 0 0 0

0

Prov. Parliament 182 0 308 6 697

7,187

Premier 3 439 0 0 1 220

4,659

Transport 3 151 1 922 4 998 7 551

17,622

Sport & Recreation 0 0 0 2 012

2,012

Co-Operative Gov &

Trad Affairs 630 106 446 6 103

7,285

Social Development 6 000 16 480 8 895 10 843

42,218

Public Works 7 092 10 718 17 508 41 206

76,524

SASSA 0 0 0 0

0

TOTAL 563,786 312,095 976,192 598,008 2,450,081

95

Infrastructure spending for Health and Education was exceptionally high, Health

achieved 102% expenditure and Education achieved 118% spending which was due to

the allocation that was less than the budget of committed projects. Public Works spent

according to projections with 99% expenditure. Overall achievement in respect of

infrastructure spending was 105% of the 2012/13 financial year budget.

Trend of infrastructure expenditure

In line with the Department‟s objective to reclaim its mandate and be the infrastructure

implementing agent of choice for Provincial Government departments, the amount of

work allocated to the Department has increased. The following table details the budget

allocated to Public Works by the client departments from 2010/2011 to 2013/2014 and

the percentage increase:

FINANCIAL YEAR BUDGET ALLOCATION

(R’000)

% INCREASE

2010/2011 R1,417,708

2011/2012 R1,711,728 21%

2012/2013 R2,370,784 38.5%

2013/2014 R2,671,968 13%

As can be seen from the table, there has been a significant increase of work allocated to

Public Works from 2010/2011 to 2013/2014, demonstrating an increase in confidence on

the Department‟s ability to deliver.

96

Leased Properties

OBJECTIVE

ETHEKWINI

REGION

R,000

MIDLANDS

REGION

R,000

NORTH

COAST

REGION

R,000

SOUTHERN

REGION

R,000

TOTAL

R,000

Arts and Culture 3 83 1469 626 385 0 5 192 287 9 650 141

Agriculture 2 723 082 3 534 981 5 614 498 1 477 517 13 350 078

Comm Safety 0 0 0 4 097 661 4 097 661

Economic Dev 3 215 123 1 504 415 2 010 668 17 427 075 24 157 281

Education 1 521 745 9 481 288 3 741 845 30 784 893 45 529 771

Royal Household 0 0 0 0 0

Human Settlements 11 804 030 0 0 6 830 823 18 634 853

Health 14 943 126 10 739 587 6 958 515 35 725 756 68 366 984

Prov. Parliament 0 0 0 0 0

Premier 1 172 054 0 0 5 958 072 7 130 126

Transport 910 404 0 0 1 828 035 2 738 439

Sport & Recreation 0 1 019 661 1 749 206 2 691 430 5 460 297

COGTA 2 548 105 1 557 912 600 325 16 881 623 21 587 965

Social Development 4 906 039 3 435 923 1 120 655 13 510 742 22 973 359

Treasury 0 0 0 11 210 354 11 210 354

Public Works 14 672 867 592 0 3 683 492 4 565 756

TOTAL 47 589 849 32 767 744 21 795 712 157 299 760 259 453 065

R259 453 066 million has been spent on the hiring of properties for Provincial

Government use. The future outlook remains constant unless there is further investment

in the construction of new office accommodation. In the event that Government

97

constructs Government buildings, the picture on expenditure will decline. Currently there

is a proposal to construct a government office park in Pietermaritzburg which is in the

planning phase.

3. Human Resource Capacity Constraints

Operating within the built environment professions makes it compulsory for the

department to employ experienced professional, technical and specialist services of

architectures, quantity surveyors, engineers such as civil, electrical and

mechanical, and other related fields such as project managers. These professions

remain a national challenge and they fall within a category of scarce skills in our

country. Hence the shortage of suitable labour is identified as one of the binding

constraints that negatively contribute to challenges the Department face in

realizing its mandate in infrastructure.

Infrastructure conditional grants to provinces will be reformed during the 2013

MTEF to introduce incentives in existing grant structures, which will promote good

Infrastructure Delivery Management System (IDMS) practices and complement

existing capacity support programmes.

KZN Cabinet approved the KwaZulu-Natal Infrastructure Delivery Management

System (KZN IDMS) frameworks document for the Health and Education Sectors,

dated 17 August 2012 which contains the governance and infrastructure principles;

which incorporates the capacitation plan of Public Works developed in respect to

the February 2012 Cabinet Lekgotla.

The KZN-IDMS specifies that the structure of Public Works will be aligned to the

service delivery model as defined in the KZN-IDMS by end of September 2013.

4. Utilisation of Donor Funding

The Department did not utilise any donor funds during the 2012/13 financial year.

5. Trading entities and public entities

The Department was not involved with trading and public entities during the


98

6. Organisations to whom transfer payments have been made

Transfer payments as reflected in the Annual Financial Statement are in respect

of payment of Municipal rates to municipalities, transfer to households in respect

of severance packages and department Agencies and Accounts in respect of

skills levy and Workmans compensation.

7. Public private partnerships (PPP)

The Department has not entered into any public private partnerships during the


8. Corporate governance arrangements

Senior Management of the Department of Public Works endorses the Code of

Corporate Practices and conduct contained in King Report III Report on good

Corporate Governance; Senior Management recognises the need to conduct the

Department of Public Works affairs with integrity and in accordance with

generally accepted corporate practices.

8.1. Risk Management

The Department continued to monitor and manage the impact of identified risks

and to ensure timeous corrective action is taken to mitigate the impact of these

risks. The Department reported quarterly to the Audit Committee who is

responsible for the oversight of the Internal Audit function which includes Risk

Management and evaluating and monitoring the Department‟s performance with

regard to Risk Management. The Departmental Risk Management process

includes monitoring of mitigating strategies as identified in the risk registers

maintained in the Regions as part of the business process

99

8.2 Fraud Prevention

A zero tolerance Fraud Prevention Policy is in place in the Department that

contains response mechanisms to report, investigate and resolve incidents of

fraud and corruption which impact on the Department.

The Department considers fraud prevention as an integral part of an overall

Departmental Risk Management Strategy. The Compliance & Risk Management

Directorate focuses specifically on fraud prevention through conducting fraud

awareness workshops, detection and investigation and resolution.

8.3 Effectiveness of Internal Audit and Audit Committee

Internal Audit implements a risk based internal audit plan annually. It performs a

support role to management by ensuring periodic audits and reports are

produced based on evaluation of the Department‟s system of internal controls

and risk management processes. Internal Audit also assesses the Department‟s

ability to comply with legislative requirements as well as performance of its

function in accordance with the mandate and commitment made in the strategic

plan.

The Audit committee has been appointed in terms of PFM Act, 1999 (Act No. 1 of

1999) as amended and members discharge their functions in accordance with

the PFMA, Treasury regulations and Audit Committee Charter. Members have at

each Audit Committee meeting engaged management on, among others, matters

relating to performance and financial management weakness identified by

external auditors during the financial year.

8.4 Other governance structures, including management processes to

minimise conflict on interest.

The following committees exist: Top Management, Executive Committee

(EXCO), Departmental Bid Adjudication Committee (BAC), Departmental Risk

Committee and Regional Management Committee (MANCO). These are

functioning effectively and are achieving their objectives. Management structures

are in place to deal with the flow of information, issues of conflict of interest,

100

provide leadership and facilitate decision making. The Department has an

established Executive Committee which meets on a monthly basis to monitor and

report back on the performance of each of the Departments programmes. This

committee also sets and provides the strategic leadership within the Department.

8.5 Implementation of the Code of Conduct

The Department continued to hold workshops and to implement the Public

Service Code of Conduct developed by DPSA to manage the conduct of

employees. This is supplemented by Public Service Coordinating Bargaining

Council (PSCBC) resolutions such as Disciplinary Procedure (Resolution 1 of

2003) and Grievance Procedures (Resolution 14 of 2002) in the public service to

deal with disciplinary matters as well as formal complaints from employees. The

Labour Relations, Consultative forum was established to prevent, minimise or

resolve complaints and grievances with a view to enhance service delivery at all

levels of the Department.

9. Discontinued activities / activities to be discontinued

There are no discontinued activities.

10. New Proposed activities

There are no new proposed activities for the 2013/14 financial year

11. Asset Management

The department has established both an immovable and movable asset register.

In terms of the immovable asset register the department has a complete register

meeting the minimum requirement of National Treasury guidelines. In terms of

movable assets, the department has recorded all assets on the register and

meets the minimum requirements of National Treasury.

12. Inventories

All inventory opening and closing balances, together with movements for the year

are reflected in the annexure on Inventory.

101

13. Events after the reporting date

There were no significant events after the reporting date which would materially

affect the financial statements.

14. Information on predetermined objectives

The departmental performance information has been reported on a monthly and

quarterly basis. This has enabled the department to track its performance per

functional area and also identify challenges and appropriate interventions and

control measures. In addition to this, the department conducts mid-term reviews.

To effectively improve on this function, the department has established a

dedicated unit to improve the internal processes on matters relating to planning,

implementation, monitoring and reporting.

15. SCOPA resolutions

SCOPA RESOLUTION

SUBJECT PROGRESS

Resolution 46/2012

Material Losses R10 380 million

These material losses to the amount of R10,380 million were incurred as a result of a write-off of irrecoverable interdepartmental claims which relate to prior 2002/2003 for which there were no source documents. Approval for these write-offs was obtained by the Accounting Officer after consultation with Provincial Treasury

The Department have satisfied itself that these amounts can be regarded as irrecoverable as reason being it is practically impossible to prove the claims because of lack of source documents as well as these are prescribed debts.

These debts were written off against the vote during year end when the department was certain that there are savings in terms of Treasury Regulations Chapter 11, paragraph 11.4, read together with Departmental Debt write-off Policy.

Going forward, the department performs monthly reconciliations of interdepartmental debts where an investigation is done to obtain source documents if there are none. Statements to client departments are reviewed for accuracy.

Resolution Progress RK Khan Hospital

102

SCOPA RESOLUTION

SUBJECT PROGRESS

47/2012 with the RK Khan and Rietvlei Hospitals

Outstanding works has been verified.

A new scope with construction time of ten months has been finalised.

Urgent procurement strategy and tender documents finalised in order to invite suitable contractors.

A request has been made to Department of Health for funding and still yet to be approved

Rietvlei Hospital

Project 3A

The contractor is on site for a 12 months period.

The work on site progressing is at 14% as of March 2013 initially there was slow progress, however after the warning letter, the contractor is improving.

16. Exemptions and deviations received from the National Treasury

No exemptions were granted from National Treasury.

17. Approval

The Annual Financial Statements as set out on the attached pages have been

approved by the Accounting Officer.

Mr A Govender

Head : Department of Public Works

103

3.3 REPORT OF THE AUDITOR-GENERAL TO THE KWAZULU-NATAL PROVINCIAL

LEGISLATURE ON VOTE NO. 14: THE DEPARTMENT OF PUBLIC WORKS

REPORT ON THE FINANCIAL STATEMENTS

Introduction

1. I have audited the financial statements of the Department of Public Works set out on pages 108 to 193 which comprise the appropriation statement, the statement of financial position as at 31 March 2013, the statement of financial performance, statement of changes in net assets and the cash flow statement for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information.

Accounting officer’s responsibility for the financial statements

2. The accounting officer is responsible for the preparation of the financial statements in accordance with the Departmental financial reporting framework prescribed by the National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999)(PFMA) and Division of Revenue Act of South Africa, 2012 (Act No. 5 of 2012)(DoRA), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-General’s responsibility

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

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

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

Opinion

6. In my opinion, the financial statements present fairly, in all material respects, the

104

financial position of the Department of Public Works as at 31 March 2013 and its financial performance and cash flows for the year then ended, in accordance with the Departmental financial reporting framework prescribed by the National Treasury and the requirements of the PFMA and DoRA.

Emphasis of matter paragraphs

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

Significant uncertainties

8. As disclosed in note 17 to the financial statements, the department is the defendant in 18 lawsuits to the estimated value of R8,95 million. The ultimate outcome of the matters cannot presently be determined, and thus a contingent liability that may result has been disclosed in the financial statements.

Irregular expenditure

9. As disclosed in note 23 to the financial statements, irregular expenditure amounting to R5,47 million was incurred in the current financial year as a result of proper procurement processes not followed and employees approving payments that are above their delegations.

Restatement of corresponding figures

10. As disclosed in notes 27, 28 and 29 to the financial statements, the balances for movable assets, intangible assets and immovable assets have been adjusted by R978 000, R83 000 and R348,14 million, respectively for 31 March 2012 as a result of an error discovered during the year ended 31 March 2013 in the financial statements of the department at, and for the year ended, 31 March 2012.

Material underspending of the budget

11. As disclosed in the appropriation statement, the department has materially underspent its budget by 16.2% or R219,08 million. This underspending relates mainly to incorrect budgeting on the property rates conditional grant as well as for capital expenditure relating to the asset register system for the implementation of the Government Immovable Asset Management Act 19 of 2007 (GIAMA).

Additional matter paragraphs

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

Unaudited supplementary schedules

13. The supplementary schedules set out on pages 194 to 221 do not form part of the financial statements and are presented as additional information. I have not audited these schedules and, accordingly, I do not express an opinion thereon.

105

Financial reporting framework

14. The financial reporting framework prescribed by the National Treasury and applied by the department is a compliance framework. The wording of my opinion on a compliance framework should reflect that the financial statements have been prepared in accordance with this framework and not that they „present fairly”. Section 20(2)(a) of the PAA however, requires me to express an opinion on the fair presentation of the financial statements. The wording of my opinion therefore reflects this requirement.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

15. In accordance with the PAA and the general notice issued in terms thereof, I report the following findings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.

Predetermined objectives

16. I performed procedures to obtain evidence about the usefulness and reliability of the information in the annual performance report as set out on pages 24 to 86 of the annual report.

17. The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury‟s annual reporting principles and whether the reported performance is consistent with the planned objectives. The usefulness of information further relates to whether indicators and targets are measurable (i.e. well defined, verifiable, specific, measurable and time bound) and relevant as required by the National Treasury Framework for managing programme performance information.

The reliability of the information in respect of the selected objectives is assessed to

determine whether it adequately reflects the facts (i.e. whether it is valid, accurate

and complete).

18. There were no material findings on the annual performance report concerning the usefulness and reliability of the information.

Additional matter

19. Although no material findings concerning the usefulness and reliability of the performance information were identified in the annual performance report, I draw attention to the following matter below.

Achievement of planned targets

20. Of the total number of 89 targets planned for the year, 38 targets were not achieved during the year under review. This represents 45% of the total planned targets that were not achieved during the year under review.

106

This is mainly due to projects that are still in the work in progress phase and could not be recorded as completed projects.

Compliance with laws and regulations

21. I performed procedures to obtain evidence that the department has complied with applicable laws and regulations regarding financial matters, financial management and other related matters. My findings on material noncompliance with specific matters in key applicable laws and regulations as set out in the general notice issued in terms of the PAA are as follows:

Annual financial statements

22. The financial statements submitted for auditing were not prepared in all material respects in accordance with the requirements of section 40(1)(b) of the PFMA. Material misstatements of capital assets and disclosure items identified by the auditors were subsequently corrected, resulting in the financial statements receiving an unqualified audit opinion.

Expenditure management

23. The accounting officer did not take effective and appropriate steps to prevent irregular expenditure, as required by section 38(1)(c)(ii) of the PFMA and Treasury Regulation (TR) 9.1.1.

Procurement and contract management

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

25. Employees of the department performed remunerative work outside their employment in the department without written permission from the relevant authority as required by section 30 of the Public Service Act, 1994.

Internal control

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

107

Leadership

27. The accounting officer and management did not adequately exercise oversight responsibility over compliance with laws and regulations relating to supply chain management.

Financial and performance management

28. Systems and controls were not designed in a manner to prevent, detect and address risks that impact on financial and compliance reporting. In this regard, the accounting officer did not ensure that regular, accurate and complete financial reports were prepared, which were supported and evidenced by reliable information, and also did not ensure that all applicable laws and regulations are complied with throughout the financial year.

OTHER REPORTS

Investigations

29. Four investigations regarding alleged fraudulent supply chain management

practices were in progress at year end while eight investigations were completed during the year.

Pietermaritzburg 31 July 2013

KWAZULU-NATAL DEPARTMENT OF PUBLIC WORKS

VOTE 14

APPROPRIATION STATEMENT

for the year ended 31 March 2013

2012/13 KwaZulu-Natal Department of Public Works - 108 -

3.4 Appropriation Statement

Appropriation per programme

2012/13 2011/12

APPROPRIATION STATEMENT Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure

Variance Expenditure

as % of

final

appropriation

Final

Appropriation

Actual

Expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

1. Programme 1

Current payment 252,666 - 4,688 257,354 257,348 6 100.0% 240,216 240,252

Transfers and subsidies 3,002 - 2,162 5,164 5,164 - 100.0% 3,301 3,301

Payment for capital assets 23,298 - 139 23,437 23,443 (6) 100.0% 29,696 29,673

Payment for financial assets - - - - 11 (11) - -

278,966 - 6,989 285,955 285,966 (11) 273,213 273,226

2. Programme 2

Current payment 126,828 - (1,775) 125,053 78,086 46,967 62.4% 87,311 87,295

Transfers and subsidies 554,329 - (8,029) 546,300 395,814 150,486 72.5% 509,180 492,948

Payment for capital assets 276 - - 276 435 (159) 157.6% 223 223

Payment for financial assets - - - - - - - -

681,433 - (9,804) 671,629 474,335 197,294 596,714 580,466

3. Programme 3

Current payment 288,670 - 2,815 291,485 290,004 1,481 99.5% 262,521 270,593

Transfers and subsidies 3,071 - - 3,071 4,727 (1,656) 153.9% 3,799 3,738

Payment for capital assets 100,248 - - 100,248 78,180 22,068 78.0% 76,723 43,865

Payment for financial assets - - - - 99 (99) - 10,380

…………. 391,989 - 2,815 394,804 373,010 21,794 343,043 328,576

Subtotal 1,352,388 - - 1,352,388 1,133,311 219,077 83.8% 1,212,970 1,182,268


VOTE 14




Statutory Appropriation

Current payment

Transfers and subsidies

Payment for capital assets

Payment for financial assets

TOTAL 1,352,388 - - 1,352,388 1,133,311 219,325 83.8% 1,212,970 1,182,268


VOTE 14




2012/13 2011/12

Final

Appropriation

Actual

Expenditure

Final

Appropriation

Actual

Expenditure

TOTAL (brought forward) 1,212,970 1,182,268

Reconciliation with statement of financial performance

ADD

Departmental receipts 23,642 6,116

Direct Exchequer receipts - -

Aid assistance - -

Actual amounts per statement of financial performance (total revenue) 1,376,030 1,219,086

ADD

Aid assistance

Direct Exchequer payments

Prior year unauthorised expenditure approved without funding

Actual amounts per statement of financial performance (total expenditure) 1,133,311 1,182,268


VOTE 14




Appropriation per economic classification

2012/13 2011/12

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments

Compensation of employees 454,736 - 475 455,211 438,487 16,724 96.3% 398,025 398,023

Goods and services 213,428 - 3,308 216,736 186,891 29,845 86.2% 192,023 199,994

Interest and rent on land - - 225 225 231 (6) 102.7% - 4


Provinces and municipalities 554,419 - (7,954) 546,465 396,112 150,353 72.5% 509,126 492,936

Departmental agencies and accounts 614 - - 614 395 219 64.3% 590 375

Universities and Technikons - - - - - - - -

Foreign governments and international organisations

- - - - - - - -

Public corporations and private enterprises

- - - - - - - -

Non-profit institutions - - - - - - - -

Households 5,369 - 3,807 9,176 9,198 (22) 100.2% 6,464 6,575

Gifts and donations - - - - - - 100 100

Payments for capital assets

Buildings and other fixed structures 98,929 - - 98,929 76,886 22,043 77.7% 75,907 43,050

Machinery and equipment 21,693 - (420) 21,273 21,108 165 99.2% 29,730 29,781

Heritage assets - - - - - - - -

Specialised military assets - - - - - - - -

Biological assets - - - - - - - -


VOTE 14




Land and subsoil assets - - - - - - - -

Software and other intangible assets 3,200 - 559 3,759 3,893 (134) 103.6% 1,005 1,050

Payments for financial assets - - - - 110 (110) - 10,380

Total 1,352,388 - - 1,352,388 1,133,311 219,077 83.8% 1,212,970 1,182,268

Statutory Appropriation

2012/13 2011/12

Direct changes against the

National/Provincial Revenue

Fund

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

List all direct charges against the

National/Provincial Revenue Fund

President and Deputy President

salaries

Member of executive committee /

parliamentary officers

Judges and magistrates salaries

Sector education and training

authorities (SETA)

National Skills Fund

- - - - - - - - -

Total - - - - - - - - -


VOTE 14




Detail per Programme 1 Administration

2012/13 2011/12

Detail per sub-programme Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

1.1 Minister’s Support

Current payment 9,885 - (112) 9,773 9,773 - 100.0% 6,458 6,458

Transfers and subsidies - - 65 65 65 - 100.0% 101 101

Payment for capital assets 10 - 171 181 181 - 100.0% 489 489

Payment for financial assets - - - -

1.2 Management

Current payment 242,781 - 4,800 247,581 247,575 6 100.0% 233,758 233,794

Transfers and subsidies 3,002 - 2,097 5,099 5,099 - 100.0% 3,200 3,200

Payment for capital assets 23,288 - (32) 23,256 23,262 (6) 100.0% 29,207 29,184

Payment for financial assets - - - - 11 (11) - -

Total 278,966 - 6,989 285,955 285,966 (11) 100% 273,213 273,226


VOTE 14




Statutory Appropriation per economic classification

2012/13 2011/12

Program 1 Per Economic

classification

Adjusted

Appropriati

on

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments

Compensation of employees 197,579 - 410 197,989 197,989 - 100.0% 177,481 177,479

Goods and services 55,087 - 4,106 59,193 59,359 (166) 100.3% 62,735 62,654

Interest and rent on land - - 172 172 172 - 100.0% -


Provinces and municipalities 137 - 75 212 369 (157) 174.1% 130 169

Departmental agencies and accounts

551 - - 551 394 157 71.5% 150 -

Universities and Technikons - - - - - - -


- - - - - - -


- - - - - - -

Non-profit institutions - - - - - - -

Households 2,314 - 2,087 4,401 4,401 - 100.0% 2,921 3,032

Gifts and donations - - - - - - 100 100


Buildings and other fixed structures - - - - - - -

Machinery and equipment 20,098 - (420) 19,678 19,378 300 98.4% 28,691 28,742


VOTE 14




Heritage assets - - - - - - -

Specialised military assets - - - - - - -

Biological assets - - - - - - -

Land and subsoil assets - - - - - - -

Software and other intangible assets 3,200 - 559 3,759 3,893 (134) 103.6% 1,005 1,050

Payments for financial assets - - - - 11 (11) - -

Total 278,966 - 6,989 285,955 285,966 (11) 100.0% 273,213 273,226


VOTE 14




Detail per Programme 2 Real Estate

2012/13 2011/12


Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

2.1 Personnel and Admin

Related

Current payment 123,355 - (1775) 121,580 73,589 47,991 60.5% 84,465 84,465

Transfers and subsidies 554,329 - (8,029) 546,300 395,814 150,486 72.5% 509,180 492,948

Payment for capital assets 276 - - 276 435 (159) 157.6% 223 223


2.2 Hiring

Current payment 3,333 - - 3,333 4,404 (1,071) 132. 2,705 2,705

Transfers and subsidies - - - - - - - -

Payment for capital assets - - - - - - - -


2.3 Acquisition of Land, Control and Disposal

Current payment 140 - - 140 93 47 141 125


Payment for capital assets - - - - - - - -


Total 681,433 - (9,804) 671,629 474,335 197,294 596,714 580,466


VOTE 14





2012/13 2011/12


classification

Adjusted

Appropriati

on

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments

Compensation of employees 34,729 - 1,838 36,567 36,567 - 100.0% 29,143 29,143

Goods and services 92,099 - (3,613) 88,486 41,512 46,974 46.9% 58,168 58,148

Interest and rent on land - - - - 6 (6) - 4


Provinces and municipalities 554,280 - (8,029) 546,251 395,743 150,508 72.4% 508,994 492,767


- - - - - - 5 -



- - - - - - - -


- - - - - - - -


Households 49 - - 49 71 (22) 144.9% 181 181

Gifts and donations - - - - - - - -


Buildings and other fixed structures - - - - - - - - -

Machinery and equipment 276 - - 276 436 (160) 158.0% 223 223




VOTE 14






Software and other intangible assets - - - - - - - -

Payments for financial assets - - - - - - - -

Total 681,433 - (9,804) 671,629 474,335 197,294 70.6% 596,714 580,466

Detail per Programme 3 Provision of Buildings Structures and Equipment

2012/13 2011/12


Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

3.1 Personnel and Admin

Related

Current payment 282,480 - - 282,480 278,888 3,592 98.7% 254,109 262,051

Transfers and subsidies 3,71 - - 3,071 4,727 (1,656) 153.9% 3,799 3,738

Payment for capital assets 1,233 - - 1,233 1,294 (61) 104.9% 780 779

Payment for financial assets - - - - 99 (99) - 10,380

3.2 Buildings and Structures

Current payment 6,190 - 2,815 9,005 11,116 (2,111) 123.4% 8,412 8,542


Payment for capital assets 99,015 - - 99,015 76,886 22,129 77.7% 75,943 43,086


Total 391,989 - 2,815 394,804 373,310 21,794 94.5% 343,043 328,576


VOTE 14





2012/13 2011/12


classification

Adjusted

Appropriati

on

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments

Compensation of employees 222,428 - (1,773) 220,655 203,931 16,724 92.4% 191,401 191,401

Goods and services 66,242 - 2,815 69,057 86,020 (16,963) 124.6% 71,120 79,192

Interest and rent on land - - 53 53 53 - 100.0% - -


Provinces and municipalities 2 - - 2 - 2 2 -


63 - - 63 1 62 1.6% 435 375



- - - - - - - -


- - - - - - - -


Households 3,006 - 1,720 4,726 4,726 - 100.0% 3,362 3,362

Gifts and donations - - - - - - - -


Buildings and other fixed structures 98,929 - - 98,929 76,886 22,043 77.7% 75,907 43,050

Machinery and equipment 1,319 - - 1,319 1,294 25 98.1% 816 816


VOTE 14








Software and other intangible assets - - - - - - - -

Payments for financial assets - - - - 99 (99) - 10,380

Total 391,989 - 2,815 394,804 373,010 21,794 94.4% 343,043 328,576


VOTE 14

NOTES TO THE APPROPRIATION STATEMENT



1. Detail of transfers and subsidies as per Appropriation Act (after Virement):

Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure

notes and Annexure 1 (A-D) to the Annual Financial Statements.

2. Detail of specifically and exclusively appropriated amounts voted (after Virement):

Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual

Financial Statements.

3. Detail on payments for financial assets

Detail of these transactions per programme can be viewed in the note on Payments for financial

assets to the Annual Financial Statements.

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

4.1 Per Programme Final

Appropriation

Actual

Expenditure

Variance

R’000

Variance as a

% of Final

Appropriation

Administration 285,955 285,966 (11) 0.0%

Within Budget.

Per Programme Final

Appropriation

Actual

Expenditure

Variance

R’000

Variance as a

% of Final

Appropriation

Real Estate 671,629 474,335 197,294 29.38%

The under-spending is due to the Devolution of Property Rates grant to provinces, against

Transfers and subsidies to: Provinces and municipalities mainly ascribed to over-provision on the

grant as well as unconfirmed disputes of R57 million with Ethekwini Municipality which are under

investigation as well as Goods and services largely due to GIAMA projects, which was put on

hold by National Public Works due to delays in the tender processes in acquiring service

providers with the appropriate capacity to undertake conditional assessments and the

procurement and development the Fixed Asset Management Tool for Property Management.

Funds totalling R59 million for will be requested to be roll-over to the 2013.14 for Property Rates

(R30 million), GIAMA (R4 million) and for the Fixed Asset Management Tool (R25 million).


VOTE 14




Per Programme Final

Appropriation

Actual

Expenditure

Variance

R’000

Variance as a

% of Final

Appropriation

Provision of Buildings and

Structures

394,804 373,010 21,794 5.52%

The under-spending was mainly due to mainly due to slow progress under Upgrading and

additions of the Public Works Head Office Project at 191 Prince Alfred Street which was awarded

much later than the anticipated date therefore resulting in delays in the commencement of the

project. The delays were due to sub-division issues that were finalised with Msunduzi Local

Municipality hence commitments on Capital Infrastructure did not materialise as originally

anticipated. Funds amounting to R 22,043 million have been requested to be rolled over to the

2013/14 financial year for the Public Works Head Office Project at 191 Prince Alfred Street.

4.2 Per economic classification Final

Appropriation

Actual

Expenditure

Variance Variance as a

% of Final

Appropriation

R’000 R’000 R’000 R’000

Current payments

Compensation of employees 455,211 438,487 16,724 3.67%

Goods and services 216,736 186,891 29,845 13.77%

Interest and rent on land 225 231 (6) (2.67%)

Unauthorised expenditure approved - - - -


Provinces and municipalities 546,465 396,112 150,353 27.51%

Departmental agencies and

accounts

614 395 219 35.67%

Universities and Technikons - - -

Public corporations and private

enterprises

- - -

Foreign governments and

international organisations

- - -

Non-profit institutions - - -

Households 9,176 9,198 (22) (0.24%)

Gifts and donations - - -


Buildings and other fixed structures 98,929 76,886 22,043 22.28%

Machinery and equipment 21,273 21,108 165 0.78%

Heritage assets - - -

Specialised military assets - - -


VOTE 14




Biological assets - - -

Land and subsoil assets - - -

Software and other intangible assets 3,759 3,893 (134) (3.56%)

Payments for financial assets - 110 (110) 0%

Compensation of Employees - Minimal within 2% Variance. Goods & Services: Under-expenditure due to GIAMA projects and Fixed Asset Management Tool for Property Provinces and Municipalities: Under-expenditure due to over-provision on the grant as well as unconfirmed disputes of R57 million with Ethekwini Municipality which are under investigation. Departmental Agencies and accounts: Savings due to workmen‟s compensation whereby claims did not materialise as anticipated as this category is difficult to forecast. Buildings and other fixed structures: Under-expenditure due to delays with Public Works Head Office Project at 191 Prince Alfred Street which was awarded much later than the anticipated date therefore resulting in delays in the commencement of the project. Machinery and equipment - Minimal within 2% Variance. Payment of financial assets: long outstanding debts that were written off.

4.3 Per conditional grant Final

Appropriation

Actual

Expenditure

Variance Variance as a

% of Final

Appropriation

R’000 R’000 R’000 R’000

Public Works

Dev Prop Rate Fun Grn Pr 551,100 402,443 148,657 26.97%

Epwp Incent Grnt Munics - - -

Epwp Inter Grnt Prov 3,540 5,292 1,752 (49.49%)

Epwp Incent Grn Prov-Soc - - -

The department exceeded by the EPWP Integrated Grant for Provinces by 49.5 per cent as a result of commitments from 2011/12 relating to the KZN Greening Programme being paid in 2012/13. This is a led by the Office of Premier. The under-spending of R154, 304 million on the Devolution of Property Rate Funds Grant to Provinces relates to the previously mentioned over-provision against this grant, the late receipt of invoices and other billing challenges in respect of invoices received from some municipalities for property rates.


VOTE 14

STATEMENT OF FINANCIAL PERFORMANCE



Note 2012/13 2011/12

R'000 R'000

REVENUE

Annual appropriation 1 1,352,388 1,212,970

Statutory appropriation - -

Departmental revenue 2 23,642 6,116

Direct Exchequer Receipts - -

NRF Receipts - -

Aid assistance - -

TOTAL REVENUE 1,376,030 1,219,086

EXPENDITURE

Current expenditure

Compensation of employees 3 438,487 398,023

Goods and services 4 186,891 200,375

Interest and rent on land 5 231 4

Aid assistance - -

Unauthorised expenditure approved without funding - -

Total current expenditure 625,609 598,402


Transfers and subsidies 7 405,705 499,986

Aid assistance - -


Total transfers and subsidies 405,705 499,986

Expenditure for capital assets

Tangible capital assets 8 97,994 72,450

Software and other intangible assets 8 3,893 1,050


Total expenditure for capital assets 101,887 73,500

Payments for financial assets 6 110 10,380

Direct Exchequer Payments - -

TOTAL EXPENDITURE 1,133,311 1,182,268

SURPLUS/(DEFICIT) FOR THE YEAR 242,719 36,818


VOTE 14

STATEMENT OF FINANCIAL PERFORMANCE



Reconciliation of Net Surplus/(Deficit) for the year

Voted funds 219,077 30,702

Annual appropriation 70,420 14,302

Conditional grants 148,657 16,400

Unconditional grants - -

Departmental revenue and NRF Receipts 12 23,642 6,116

Direct Exchequer receipts/payments - -

Aid assistance - -

SURPLUS/(DEFICIT) FOR THE YEAR 242,719 36,818


VOTE 14

STATEMENT OF FINANCIAL POSITION

as at 31 March 2013


Note 2012/13 2011/12

R'000 R'000

ASSETS

Current assets 459,023 315,579

Unauthorised expenditure - -

Fruitless and wasteful expenditure - -

Cash and cash equivalents 9 41 41

Other financial assets - -

Prepayments and advances - -

Receivables 10 458,982 315,538

Loans - -

Aid assistance prepayments - -

Aid assistance receivable - -

Non-current assets - -

Investments - -

Loans - -

Other financial assets - -

TOTAL ASSETS 459,023 315,579

LIABILITIES

Current liabilities 457,614 314,155

Voted funds to be surrendered to the Revenue Fund 11 219,077 30,702

Departmental revenue and NRF Receipts to be

surrendered to the Revenue Fund

12 841 252

Direct Exchequer Receipts to be surrendered to the

Revenue Fund

- -

Bank overdraft 13 233,029 280,059

Payables 14 4,667 3,142

Aid assistance repayable - -

Aid assistance unutilised - -

Non-current liabilities

Payables - -

TOTAL LIABILITIES 457,614 314,155

NET ASSETS 1,409 1,424


VOTE 14

STATEMENT OF FINANCIAL POSITION

as at 31 March 2013


Note 2012/13 2011/12

R'000 R'000

Represented by:

Capitalisation reserve -

Recoverable revenue 1,409 1,424

Retained funds -

Revaluation reserves -

TOTAL 1,409 1,424


VOTE 14

STATEMENT OF CHANGES IN NET ASSETS



Note 2012/13 2011/12

R'000 R'000

Capitalisation Reserves

Opening balance - -

Transfers: - -

Movement in Equity - -

Movement in Operational Funds - -

Other movements - -

Closing balance - -

Recoverable revenue

Opening balance 1,424 694

Transfers: (15) 730

Irrecoverable amounts written off 22.2 (15) (336)

Debts revised 54 (50)

Debts recovered (included in departmental

receipts)

(973) (52)

Debts raised 919 1,168

Closing balance 1,409 1,424

Retained funds

Opening balance - -

Transfer from voted funds to be surrendered

(Parliament/Legislatures ONLY)

- -

Utilised during the year - -

Other - -

Closing balance - -

Revaluation Reserve

Opening balance - -

Revaluation adjustment (Housing departments) - -

Transfers - -

Other - -

Closing balance - -

TOTAL 1,409 1,424


VOTE 14

CASH FLOW STATEMENT



Note 2012/13 2011/12

R'000 R’000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 1,360,122 1,219,086

Annual appropriated funds received 1.1 1,352,388 1,212,970

Statutory appropriated funds received - -

Departmental revenue received 2 7,734 6,116

Direct Exchequer Receipts - -

NRF Receipts - -

Aid assistance received 6 - -

Net (increase)/decrease in working capital (141,919) (185,449)

Surrendered to Revenue Fund (53,755) (173,880)

Surrendered to RDP Fund/Donor - -

Current payments (625,609) (598,521)

Payments for financial assets (110) (10,380)

Transfers and subsidies paid (405,705) (499,986)

Net cash flow available from operating activities 15 133,024 (249,130)

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for capital assets 18 (101,887) (73,381)

Proceeds from sale of capital assets 2.3 15,908 -

(Increase)/decrease in loans - -

(Increase)/decrease in investments - -

(Increase)/decrease in other financial assets - -

Net cash flows from investing activities (85,979) (73,381)

CASH FLOWS FROM FINANCING ACTIVITIES

Distribution/dividend received - -

Increase/(decrease) in net assets (15) 730

Increase/(decrease) in non-current payables - -

Net cash flows from financing activities (15) 730

Net increase/(decrease) in cash and cash equivalents 47,030 (321,781)

Cash and cash equivalents at beginning of period (280,018) 41,763

Cash and cash equivalents at end of period 16 (232,988) (280,018)


VOTE 14

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. However,

where appropriate and meaningful, additional information has been disclosed to enhance the

usefulness of the Financial Statements and to comply with the statutory requirements of the

Public Finance Management Act, Act 1 of 1999 (as amended by Act 29 of 1999), and the

Treasury Regulations issued in terms of the Act and the Division of Revenue Act, Act 1 of 2010.

1. Presentation of the Financial Statements

1.1 Basis of preparation

The financial statements have been prepared on a modified cash basis of accounting.

Under this basis, the effects of transactions and other events are recognised in the financial

records when the resulting cash is received or paid. The “modification” results from the

recognition of certain near-cash balances in the financial statements as well as the revaluation of

foreign investments and loans and the recognition of resulting revaluation gains and losses.

In addition supplementary information is provided in the disclosure notes to the financial

statements where it is deemed to be useful to the users of the financial statements.

1.2 Presentation currency

All amounts have been presented in the currency of the South African Rand (R) which is also the

functional currency of the department.

1.3 Rounding

Unless otherwise stated all financial figures have been rounded to the nearest one thousand

Rand (R‟000).

1.4 Comparative figures

Prior period comparative information has been presented in the current year‟s financial

statements. Where necessary figures included in the prior period financial statements have been

reclassified to ensure that the format in which the information is presented is consistent with the

format of the current year‟s financial statements.


VOTE 14

ACCOUNTING POLICIES



1.5 Comparative figures - Appropriation Statement

A comparison between actual amounts and final appropriation per major classification of

expenditure is included in the Appropriation Statement.

2. Revenue

2.1 Appropriated funds

Appropriated funds comprises of departmental allocations as well as direct charges against

revenue fund (i.e. statutory appropriation).

Appropriated funds are recognised in the financial records on the date the appropriation becomes

effective. Adjustments made in terms of the adjustments budget process are recognised in the

financial records on the date the adjustments become effective.

Unexpended appropriated funds are surrendered to the National/Provincial Revenue Fund. Any

amounts owing to the National/Provincial Revenue Fund at the end of the financial year are

recognised as payable in the statement of financial position.

Any amount due from the National/Provincial Revenue Fund at the end of the financial year is

recognised as a receivable in the statement of financial position.

2.2 Departmental revenue

All departmental revenue is recognised in the statement of financial performance when received

and is subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise.

Any amount owing to the National/Provincial Revenue Fund at the end if the financial year is

recognised as a payable in the statement of financial position.

No accrual is made for amounts receivable from the last receipt date to the end of the reporting

period. These amounts are however disclosed in the disclosure notes to the annual financial

statements.


VOTE 14

ACCOUNTING POLICIES



2.3 Direct Exchequer receipts

All direct exchequer receipts are recognised in the statement of financial performance when the

cash is received and is subsequently paid into the National/Provincial Revenue Fund, unless

stated otherwise.

Any amount owing to the National/Provincial Revenue Funds at the end of the financial year is

recognised as a payable in the statement of financial position.

2.4 Direct Exchequer payments

All direct exchequer payments are recognised in the statement of financial performance when

final authorisation for payment is effected on the system (by no later than 31 March of each year).

2.5 Aid assistance

Aids assistance is recognised as revenue when received

All in-kind aid assistance is disclosed at fair value on the date of receipt in the annexures to the

Annual Financial Statements

The cash payments made during the year relating to aid assistance projects are recognised as

expenditure in the statement of financial performance when final authorisation for payments is

effected on the system (by no later than 31 March of each year)

The value of the assistance expensed prior to the receipt of funds is recognised as a receivable in

the statement of financial position.

Inappropriately expensed amounts using aid assistance and any unutilised amounts are

recognised as payables in the statement of financial position.

All CARA funds received must be recorded as revenue when funds are received. The cash

payments made during the year relating to CARA earmarked projects are recognised as

expenditure in the statement of financial performance when final authorisation for payments

effected on the system (by no later than 31 March of each year)


VOTE 14

ACCOUNTING POLICIES



Inappropriately expensed amounts using CARA funds are recognised as payables in the

statement of financial position. Any unutilised amounts are transferred to retained funds as they

are not surrendered to the revenue fund.

3. Expenditure

3.1 Compensation of employees

3.1.1 Salaries and wages

Salaries and wages are expensed in the statement of financial performance when the final

authorisation for payment is effected on the system (by no later than 31 March of each year).

Other employee benefits that give rise to a present legal or constructive obligation are disclosed

in the disclosure notes to the financial statements at its face value and are not recognised in the

statement of financial performance or position.

Employee costs are capitalised to the cost of a capital project when an employee spends more

than 50% of his/her time on the project. These payments form part of expenditure for capital

assets in the statement of financial performance.

3.1.2 Social contributions

Employer contributions to post employment benefit plans in respect of current employees are

expensed in the statement of financial performance when the final authorisation for payment is

effected on the system (by no later than 31 March of each year).

No provision is made for retirement benefits in the financial statements of the department. Any

potential liabilities are disclosed in the financial statements of the National Revenue Fund and not

in the financial statements of the employer department.

Employer contributions made by the department for certain of its ex-employees (such as medical

benefits) are classified as transfers to households in the statement of financial performance.


VOTE 14

ACCOUNTING POLICIES



3.2 Goods and services

Payments made during the year for goods and/or services are recognised as an expense in the

statement of financial performance when the final authorisation for payment is effected on the

system (by no later than 31 March of each year).

The expense is classified as capital if the goods and/or services were acquired for a capital

project or if the total purchase price exceeds the capitalisation threshold (currently R5, 000). All

other expenditures are classified as current.

Rental paid for the use of buildings or other fixed structures is classified as goods and services

and not as rent on land.

3.3 Interest and rent on land

Interest and rental payments are recognised as an expense in the statement of financial

performance when the final authorisation for payment is effected on the system (by no later than

31 March of each year). This item excludes rental for the use of buildings or other fixed

structures. If it is not possible to distinguish between payment for the use of land and the fixed

structures on it, the whole amount should be recorded under goods and services.

3.4 Payments for financial assets

Debts are written off when identified as irrecoverable. Debts written-off are limited to the amount

of savings and/or underspending of appropriated funds. The write off occurs at year-end or when

funds are available. No provision is made for irrecoverable amounts but an estimate is included

in the disclosure notes to the financial statements.

All other losses are recognised when authorisation has been granted for the recognition thereof.

3.5 Transfers and subsidies

Transfers and subsidies are recognised as an expense when the final authorisation for payment

is effected on the system (by no later than 31 March of each year).

3.6 Unauthorised expenditure

When confirmed unauthorised expenditure is recognised as an asset in the statement of financial

position until such time as the expenditure is either approved by the relevant authority, recovered


VOTE 14

ACCOUNTING POLICIES



from the responsible person or written off as irrecoverable in the statement of financial

performance.

Unauthorised expenditure approved with funding is derecognised from the statement of financial

position when the unauthorised expenditure is approved and the related funds are received.

Where the amount is approved without funding it is recognised as expenditure in the statement of

financial performance on the date stipulated in the Act.

3.7 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure is recognised as expenditure in the statement of financial

performance according to the nature of the payment and not as a separate line item on the face

of the statement. If the expenditure is recoverable it is treated as an asset until it is recovered

from the responsible person or written off as irrecoverable in the statement of financial

performance.

3.8 Irregular expenditure

Irregular expenditure is recognised as expenditure in the statement of financial performance. If

the expenditure is not condoned by the relevant authority it is treated as an asset until it is

recovered or written off as irrecoverable.

4. Assets

4.1 Cash and cash equivalents

Cash and cash equivalents are carried in the statement of financial position at cost.

Bank overdrafts are shown separately on the face of the statement of financial position.

For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand,

deposits held, other short-term highly liquid investments and bank overdrafts.

4.2 Other financial assets

Other financial assets are carried in the statement of financial position at cost.


VOTE 14

ACCOUNTING POLICIES



4.3 Prepayments and advances

Amounts prepaid or advanced are recognised in the statement of financial position when the

payments are made and are derecognised as and when the goods/services are received or the

funds are utilised.

Prepayments and advances outstanding at the end of the year are carried in the statement of

financial position at cost.

4.4 Receivables

Receivables included in the statement of financial position arise from cash payments made that

are recoverable from another party (including departmental employees) and are derecognised

upon recovery or write-off.

Receivables outstanding at year-end are carried in the statement of financial position at cost plus

any accrued interest. Amounts that are potentially irrecoverable are included in the disclosure

notes.

4.5 Investments

Capitalised investments are shown at cost in the statement of financial position.

Investments are tested for an impairment loss whenever events or changes in circumstances

indicate that the investment may be impaired. Any impairment loss is included in the disclosure

notes.

4.6 Loans

Loans are recognised in the statement of financial position when the cash is paid to the

beneficiary. Loans that are outstanding at year-end are carried in the statement of financial

position at cost plus accrued interest.

Amounts that are potentially irrecoverable are included in the disclosure notes.


VOTE 14

ACCOUNTING POLICIES



4.7 Inventory

Inventories that qualify for recognition must be initially reflected at cost. Where inventories are

acquired at no cost, or for nominal consideration, their cost shall be their fair value at the date of

acquisition.

All inventory items at year-end are reflected using the weighted average cost or FIFO cost

formula.

4.8 Capital assets

4.8.1 Movable assets

Initial recognition

A capital asset is recorded in the asset register on receipt of the item at cost. Cost of an asset is

defined as the total cost of acquisition. Where the cost cannot be determined accurately, the

movable capital asset is stated at fair value. Where fair value cannot be determined, the capital

asset is included in the asset register at R1.

All assets acquired prior to 1 April 2002 are included in the register R1.

Subsequent recognition

Subsequent expenditure of a capital nature is recorded in the statement of financial performance

as “expenditure for capital assets” and is capitalised in the asset register of the department on

completion of the project.

Repairs and maintenance is expensed as current “goods and services” in the statement of

financial performance.

4.8.2 Immovable assets

Initial recognition

A capital asset is recorded on receipt of the item at cost. Cost of an asset is defined as the total

cost of acquisition. Where the cost cannot be determined accurately, the immovable capital asset

is stated at R1 unless the fair value for the asset has been reliably estimated.


VOTE 14

ACCOUNTING POLICIES



Subsequent recognition

Work-in-progress of a capital nature is recorded in the statement of financial performance as

“expenditure for capital assets”. On completion, the total cost of the project is included in the

asset register of the department that is accountable for the asset.

Repairs and maintenance is expensed as current “goods and services” in the statement of

financial performance.

4.8.3 Intangible assets

Initial recognition

An intangible asset is recorded in the asset register on receipt of the item at cost. Cost of an

intangible asset is defined as the total cost of acquisition. Where the cost cannot be determined

accurately, the intangible asset is stated at fair value. Where fair value cannot be determined, the

intangible asset is included in the asset register at R1.

All intangible assets acquired prior to 1 April 2002 can be included in the asset register at R1.*

Subsequent expenditure

Subsequent expenditure of a capital nature is recorded in the statement of financial performance

as “expenditure for capital asset” and is capitalised in the asset register of the department.

Maintenance is expensed as current “goods and services” in the statement of financial

performance.

5. Liabilities

5.1 Payables

Recognised payables mainly comprise of amounts owing to other governmental entities. These

payables are carried at cost in the statement of financial position.

5.2 Contingent liabilities

Contingent liabilities are included in the disclosure notes to the financial statements when it is

possible that economic benefits will flow from the department, or when an outflow of economic

benefits or service potential is probable but cannot be measured reliably.


VOTE 14

ACCOUNTING POLICIES



5.3 Contingent assets

Contingent assets are included in the disclosure notes to the financial statements when it is

probable that an inflow of economic benefits will flow to the entity.

5.4 Commitments

Commitments are not recognised in the statement of financial position as a liability or as

expenditure in the statement of financial performance but are included in the disclosure notes.

5.5 Accruals

Accruals are not recognised in the statement of financial position as a liability or as expenditure in

the statement of financial performance but are included in the disclosure notes.

5.6 Employee benefits

Short-term employee benefits that give rise to a present legal or constructive obligation are

disclosed in the disclosure notes to the financial statements. These amounts are not recognised

in the statement of financial performance or the statement of financial position.

5.7 Lease commitments

Finance lease

Finance leases are not recognised as assets and liabilities in the statement of financial position.

Finance lease payments are recognised as a capital expense in the statement of financial

performance and are not apportioned between the capital and the interest portions. The total

finance lease payment is disclosed in the disclosure notes to the financial statements.

Operating lease

Operating lease payments are recognised as an expense in the statement of financial

performance. The operating lease commitments are disclosed in the discloser notes to the

financial statement.


VOTE 14

ACCOUNTING POLICIES



5.8 Impairment

The department tests for impairment where there is an indication that a receivable, loan or

investment may be impaired. An assessment of whether there is an indication of possible

impairment is done at each reporting date. An estimate is made for doubtful loans and

receivables based on a review of all outstanding amounts at year-end. Impairments on

investments are calculated as being the difference between the carrying amount and the present

value of the expected future cash flows / service potential flowing from the instrument.

5.9 Provisions

Provisions are disclosed 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 will be required to settle the obligation and a reliable estimate of

the obligation can be made.

6. Receivables for departmental revenue

Receivables for departmental revenue are disclosed in the disclosure notes to the annual

financial statements. These receivables are written off when identified as irrecoverable and are

disclosed separately.

7. Net Assets

7.1 Capitalisation reserve

The capitalisation reserve comprises of financial assets and/or liabilities originating in a prior

reporting period but which are recognised in the statement of financial position for the first time in

the current reporting period. Amounts are recognised in the capitalisation reserves when

identified in the current period and are transferred to the National/Provincial Revenue Fund when

the underlying asset is disposed and the related funds are received.

7.2 Recoverable revenue

Amounts are recognised as recoverable revenue when a payment made in a previous financial

year becomes recoverable from a debtor in the current financial year. Amounts are either

transferred to the National/Provincial Revenue Fund when recovered or are transferred to the

statement of financial performance when written-off.


VOTE 14

ACCOUNTING POLICIES



8. Related party transactions

Specific information with regards to related party transactions is included in the disclosure notes.

9. Key management personnel

Compensation paid to key management personnel including their family members where

relevant, is included in the disclosure notes.

10. Public private partnerships

A description of the PPP arrangement, the contract fees and current and capital expenditure relating to the PPP arrangement is included in the disclosure notes.


VOTE 14

NOTES TO THE ANNUAL FINANCIAL STATEMENTS



1. Annual Appropriation

1.1 Annual Appropriation

Included are funds appropriated in terms of the Appropriation Act (and the Adjustments

Appropriation Act) for National Departments (Voted funds) and Provincial Departments:

2012/13 2011/12

Per Programme

Final

Appropriation

Actual Funds

Received

Funds not

requested/

not

received

Appropriation

received

R’000 R’000 R’000 R’000

Administration 285,955 285,966 6,989 273,213

Real Estate 671,629 681,433 (9,804) 596,714

Provision of

Building

Structures and

Equipment

394,804 391,989 2,815 343,043

Total 1,352,388 1,352,388 - 1,212,970

1.2 Conditional grants

Note

2012/13 2011/12

R’000 R’000

Total grants received 30 554,640 507,841

- -

Provincial grants included in Total Grants received

2. Departmental revenue

Note 2012/13 2011/12

R’000 R’000

Tax revenue - -

Sales of goods and services other than capital

assets

2.1 6,122 4,717

Fines, penalties and forfeits - -

Interest, dividends and rent on land 2.2 220 198

Sales of capital assets 2.3 15,908 -

Transactions in financial assets and liabilities 2.4 1,392 1,201

Transfer received - -

Total revenue collected 23,642 6,116

Less: Own revenue included in appropriation - -

Departmental revenue collected 23,642 6,116


VOTE 14




2.1 Sales of goods and services other than capital assets

Note 2012/13 2011/12

2 R’000 R’000

Sales of goods and services produced by the

department

6,116 4,711

Sales by market establishment 3,969 4,257

Administrative fees - -

Other sales 2,147 454

Sales of scrap, waste and other used current goods 6 6

Total 6,122 4,717

2.2 Interest, dividends and rent on land

Note 2012/13 2011/12

2 R’000 R’000

Interest 140 44

Dividends - -

Rent on land 80 154

Total 220 198

2.3 Sale of capital assets

Note 2012/13 2011/12

2 R’000 R’000

Tangible assets 15,908 -

Buildings and other fixed structures 29 13,745 -

Machinery and equipment 27 2,163 -

Specialised military assets - -

Land and subsoil assets - -

Biological assets - -

Software and other intangible assets - -

Computer software - -

Mastheads and publishing titles - -

Patents, licences, copyright, brand names,

trademarks

- -

Recipes, formulae, prototypes, designs, models - -

Services and operating rights - -

Total 15,908 -


VOTE 14




2.4 Transactions in financial assets and liabilities

Note 2012/13 2011/12

2 R’000 R’000

Loans and advances - -

Receivables 861 389

Forex gain - -

Stale cheques written back 38 232

Other Receipts including Recoverable Revenue 493 580

Total 1,392 1,201

3 Compensation of employees

3.1 Salaries and Wages

Note 2012/13 2011/12

R’000 R’000

Basic salary 303,309 277,488

Performance award 2,945 159

Service Based 1,005 847

Compensative/circumstantial 2,288 1,926

Periodic payments 917 895

Other non-pensionable allowances 60,324 54,352

Total 370,788 335,667

3.2 Social contributions

Note 2012/13 2011/12

R’000 R’000

Employer contributions

Pension 39,081 34,630

Medical 28,504 27,615

UIF 2 1

Bargaining council 110 110

Official unions and associations - -

Insurance 2 -

Total 67,699 62,356

Total compensation of employees 438,487 398,023

Average number of employees 2,300 2,078


VOTE 14




4 Goods and services

Note 2012/13 2011/12

R’000 R’000

Administrative fees 140 23

Advertising 6,969 6,194

Assets less than R5,000 4.1 1,007 571

Bursaries (employees) 611 497

Catering 571 506

Communication 9,169 7,355

Computer services 4.2 16,307 15,100

Consultants, contractors and agency/outsourced

services

4.3 45,047 73,152

Entertainment 153 241

Audit cost – external 4.4 4,252 2,029

Fleet services 8,176 8,277

Inventory 4.5 5,490 5,740

Housing - -

Operating leases 3,818 8,592

Property payments 4.6 52,887 8,592

Rental and hiring 3,514 45,889

Transport provided as part of the departmental

activities

68 83

Travel and subsistence 4.7 15,737 16,827

Venues and facilities 175 542

Training and staff development 7,670 4,900

Other operating expenditure 4.8 5,130 3,857

Total 186,891 200,375

4.1 Assets less than R5,000

Note 2012/13 2011/12

4 R’000 R’000

Tangible assets 1,007 571

Buildings and other fixed structures - -


Heritage assets - -

Machinery and equipment 1,007 571

Transport assets -

Specialised military assets -

Intangible assets

Total 1,007 571


VOTE 14




4.2 Computer services

Note 2012/13 2011/12

4 R’000 R’000

SITA computer services 10,119 10,031

External computer service providers 6,188 5,069

Total 16,307 15,100

4.3 Consultants, contractors and agency/outsourced services

Note 2012/13 2011/12

4 R’000 R’000

Business and advisory services 320 585

Infrastructure and planning 158 1,741

Laboratory services - -

Legal costs 1,064 221

Contractors 1,463 1,483

Agency and support/outsourced services 42,042 69,122

Total 45,047 73,152

4.4 Audit cost – External

Note 2012/13 2011/12

4 R’000 R’000

Regularity audits 3,994 2,029

Performance audits - -

Investigations 258 -

Environmental audits - -

Computer audits - -

Total 4,252 2,029


VOTE 14




4.5 Inventory

Note 2012/13 2011/12

4 R’000 R’000

Medsas inventory interface - -

Learning and teaching support material 91 89

Food and food supplies - -

Fuel, oil and gas 43 114

Other consumables 1,566 2,329

Materials and supplies 449 209

Stationery and printing 3,337 2,990

Medical supplies 4 9

Medicine - -

Military stores - -

Total 5,490 5,740

4.6 Property payments

Note 2012/13 2011/12

4 R’000 R’000

Municipal services 16,283 15,506

Property management fees - -

Property maintenance and repairs 10,765 7,209

Other 25,839 23,174

Total 52,887 45,889

4.7 Travel and subsistence

Note 2012/13 2011/12

4 R’000 R’000

Local 15,707 16,777

Foreign 30 50

Total 15,737 16,827

4.8 Other operating expenditure

Note 2012/13 2011/12

4 R’000 R’000

Learnerships - -

Professional bodies, membership and subscription

fees

3 25

Resettlement costs 3,163 2,553

Gifts - -

Other 1,964 1,279

Total 5,130 3,857


VOTE 14




5 Interest and rent on land

Note 2012/13 2011/12

R’000 R’000

Interest paid 231 4

Rent on land - -

Total 231 4

6 Payments for financial assets

Note 2012/13 2011/12

R’000 R’000

Material losses through criminal conduct - -

Theft - -

Other material losses - -

Purchase of equity - -

Extension of loans for policy purposes - -

Other material losses written off - -

Debts written off 6.1 110 10,380

Forex losses - -

Total 110 10,380

6.1 Debts written off

Note 2012/13 2011/12

6 R’000 R’000

Nature of debts written off

Irregular expenditure written off - -

Debt written off due to prescription 110 585

Interdepartmental Claims - 9,795

Total 110 10,380

Total debt written off 110 10,380


VOTE 14




7 Transfers and subsidies

2012/13 2011/12

R’000 R’000

Note

Provinces and municipalities Annex 1A 396,112 492,936

Departmental agencies and accounts Annex 1B 395 375

Universities and Technikons - -

Foreign governments and international

organisations

- -

Public corporations and private enterprises - -

Non-profit institutions - -

Households Annex 1C 9,135 6,575

Gifts, donations and sponsorships made Annex 1D 63 100

Total 405,705 499,986

Unspent funds transferred to the above beneficiaries

8 Expenditure for capital assets

Note 2012/13 2011/12

R’000 R’000

Tangible assets 97,994 72,450

Buildings and other fixed structures 29 76,886 42,669

Heritage assets - -

Machinery and equipment 27 21,108 29,781

Specialised military assets - -

Land and subsoil assets - -


Software and other intangible assets 3,893 1,050

Computer software 28 3,893 1,050

Mastheads and publishing titles - -

Patents, licences, copyright, brand names,

trademarks

- -

Recipes, formulae, prototypes, designs, models - -

Services and operating rights - -

Total 101,887 73,500


VOTE 14




8.1 Analysis of funds utilised to acquire capital assets – 2012/13

Voted funds Aid

assistance

Total

R’000 R’000 R’000

Tangible assets 97,994 - 97,994

Buildings and other fixed structures 76,886 - 76,886


Machinery and equipment 21,108 - 21,108




Software and other intangible assets 3,893 - 3,893

Computer software 3,893 - 3,893

Mastheads and publishing titles - - -

Patents, licences, copyright, brand

names, trademarks

- - -

Recipes, formulae, prototypes,

designs, models

- - -

Services and operating rights - - -

Total 101,887 - 101,887

8.2 Analysis of funds utilised to acquire capital assets – 2011/12

Voted funds Aid

assistance

Total

R’000 R’000 R’000

Tangible assets 72,450 - 72,450

Buildings and other fixed structures 42,669 - 42,669


Machinery and equipment 29,781 - 29,781




Software and other intangible assets 1,050 - 931

Computer software 1,050 - 931

Mastheads and publishing titles - - -

Patents, licences, copyright, brand

names, trademarks

- - -

Recipes, formulae, prototypes,

designs, models

- - -

Services and operating rights - - -

Total 73,500 - 73,381


VOTE 14




9 Cash and cash equivalents

Note 2012/13 2011/12

R’000 R’000

Consolidated Paymaster General Account - -

Cash receipts - -

Disbursements - -

Cash on hand 41 41

Investments (Domestic) - -

Investments (International) - -

Total 41 41

10 Receivables

2012/13 2011/12

R’000 R’000 R’000 R’000 R’000

Note

Less

than one

year

One to

three

years

Older

than

three

years

Total

Total

Claims recoverable 10.1

Annex

3

328,341 29,641 86,312 444,294 301,909

Trade receivables - - - - -

Recoverable

expenditure

- - - - -

Staff debt 10.2 994 812 194 2,000 12,008

Other debtors 10.3 1,068 - 11,620 12,688 11,621

Total 330,403 30,453 98,126 458,982 315,538

10.1 Claims recoverable

Note 2012/13 2011/12

10 R’000 R’000

National departments 239 167

Provincial departments 435,246 292,785

Foreign governments - -

Public entities 8,753 8,920

Private enterprises 56 37

Universities and Technikons - -

Households and non-profit institutions - -

Local governments - -

Total 444,294 301,909


VOTE 14




10.2 Staff debt

Note 2012/13 2011/12

10 R’000 R’000

(Group major categories, but list material items)

Breach of Contract 1,025 275

Employee 108 183

Ex-employee 305 209

Other 562 1,341

Total 2,000 2,008

10.3 Other debtors

Note 2012/13 2011/12

10 R’000 R’000

(Group major categories, but list material items)

Disallowance Payments Fraud Cheques: CA 11,620 11,620

Sal: Tax Debt: CA 16 -

Sal: Pension Fund: CL - 1

Disallowance Miscellaneous: CA 1,052 -

Total 12,688 11,621

11 Voted funds to be surrendered to the Revenue Fund

Note 2012/13 2011/12

R’000 R’000

Opening balance 30,702 166,577

Transfer from statement of financial performance 219,077 30,702

Add: Unauthorised expenditure for current year - -

Voted funds not requested/not received - -

Transferred to retained revenue to defray excess

expenditure (PARLIAMENT/LEGISLATURES ONLY)

- -

Paid during the year (30,702) (166,577)

Closing balance 219,077 30,702


VOTE 14




12 Departmental revenue and NRF Receipts to be surrendered to the Revenue

Fund

Note 2012/13 2011/12

R’000 R’000

Opening balance 252 1,439

Transfer from Statement of Financial Performance 23,642 6,116

Own revenue included in appropriation - -

Transfer from aid assistance - -

Transfer to voted funds to defray expenditure

(Parliament/Legislatures ONLY)

- -

Paid during the year (23,053) (7,303)

Closing balance 841 252

13 Bank Overdraft

Note 2012/13 2011/12

R’000 R’000

Consolidated Paymaster General Account 233,029 280,059

Fund requisition account - -

Overdraft with commercial banks (Local) - -

Overdraft with commercial banks (Foreign) - -

Total 233,029 280,059

14 Payables – current

Note 2012/13 2011/12

R’000 R’000

Amounts owing to other entities - -

Advances received - -

Clearing accounts 14.1 1,001 190

Other payables 14.2 3,666 2,952

Total 4,667 3,152


VOTE 14




14.1 Clearing accounts

Note 2012/13 2011/12

14 R’000 R’000

Description

(Identify major categories, but list material amounts)

Salary ACB Recalls 953 124

Pension Recoverable 1 15

Sal: Reversal Control : CA 18 14

Sal: Income Tax 29 37

Total 1,001 190

14.2 Other payables

Note 2012/13 2011/12

14 R’000 R’000

Description

(Identify major categories, but list material amounts)

Tender Deposits 3,665 2,951

Sal: Garnishee Order: CL 1 1

Total 3,666 2,952

15 Net cash flow available from operating activities

Note 2012/13 2011/12

R’000 R’000

Net surplus/(deficit) as per Statement of Financial

Performance

242,719 36,818

Add back non cash/cash movements not deemed

operating activities

(109,695) (285,948)

(Increase)/decrease in receivables – current (143,444) (186,365)

(Increase)/decrease in prepayments and advances - -

(Increase)/decrease in other current assets - -

Increase/(decrease) in payables – current 1,525 916

Proceeds from sale of capital assets (15908) -

Proceeds from sale of investments - -

(Increase)/decrease in other financial assets - -

Expenditure on capital assets 101,887 73,381

Surrenders to Revenue Fund (53,755) (173,880)

Surrenders to RDP Fund/Donor - -

Voted funds not requested/not received - -

Own revenue included in appropriation - -

Other non-cash items - -

Net cash flow generated by operating activities 133,024 (249,130)


VOTE 14




16 Reconciliation of cash and cash equivalents for cash flow purposes

Note 2012/13 2011/12

R’000 R’000

Consolidated Paymaster General account (233,029) (280,059)

Fund requisition account - -

Cash receipts - -

Disbursements - -

Cash on hand 41 41

Cash with commercial banks (Local) - -

Cash with commercial banks (Foreign) - -

Total (232,988) (280,018)


VOTE 14

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS



These amounts are not recognised in the Annual Financial Statements and are disclosed to

enhance the usefulness of the Annual Financial Statements.

17 Contingent liabilities and contingent assets

17.1 Contingent liabilities

Note 2012/13 2011/12

R’000 R’000

Liable to Nature

Motor vehicle guarantees Employees - -

Housing loan guarantees Employees Annex 2A 196 236

Other guarantees - -

Claims against the department Annex 2B 8,955 15,835

Other departments (interdepartmental unconfirmed

balances)

Annex 4 1,175 891

Environmental rehabilitation liability - -

Other - -

Total 10,326 16,962

17.2 Contingent assets

Note 2012/13 2011/12

R’000 R’000

Nature of contingent asset

Claim for damages on vehicle 516 601

Damages to Building 28 28

Loss of laptop 14 14

Recoveries for cancellation of contract 6,132 -

Total 6,690 643

18 Commitments

Note 2012/13 2011/12

R’000 R’000

Current expenditure

Approved and contracted 14,529 142,080

Approved but not yet contracted 3,147 -

17,676 142,080

Capital expenditure

Approved and contracted 139,515 8,006

Approved but not yet contracted 23,796 24,088

163,311 32,094

Total Commitments 180,987 174,175


VOTE 14




Commitments longer than a year amounts to R134,766,843

19 Accruals

2012/13 2011/12

R’000 R’000

Listed by economic classification

30 Days 30+ Days Total Total

Goods and services 5,456 2,238 7,694 6,628

Interest and rent on land - - - -

Transfers and subsidies 421 137 558 5,328

Capital assets 881 87 968 640

Other - - - 15

Total 6,758 2,462 9,220 12,611

Note 2012/13 2011/12

R’000 R’000

Listed by programme level

Programme 1 5,940 5,307

Programme 2 990 5,432

Programme 3 2,290 1,872

Total 9,220 12,611

Note 2012/13 2011/12

R’000 R’000

Confirmed balances with other departments Annex 4 1,334 828

Confirmed balances with other government entities - -

Total 1,334 828

20 Employee benefits

Note 2012/13 2011/12

R’000 R’000

Leave entitlement 22,540 18,740

Service bonus (Thirteenth cheque) 12,179 11,663

Performance awards 3,096 4,879

Capped leave commitments 55,965 58,318

Other 5,188 2,709

Total 98,968 96,309


VOTE 14




21 Lease commitments

21.1 Operating leases expenditure

2012/13

Specialised

military

equipment

Land

Buildings

and other

fixed

structures

Machinery

and

equipment

Total

Not later than 1 year - - 3,192 2,044 5,236

Later than 1 year and not later

than 5 years

- - 2,952 1,331 4,283

Later than five years - - - 24 24

Total lease commitments - - 6,143 3,400 9,543

2011/12

Specialised

military

equipment

Land

Buildings

and other

fixed

structures

Machinery

and

equipment

Total

Not later than 1 year - - 3,147 1,747 4,894

Later than 1 year and not later

than 5 years

- - 6,377 1,363 7,740

Later than five years - - 221 - 221

Total lease commitments - - 9,745 3,110 12,855

21.2 Finance leases expenditure**

2012/13

Specialised

military

equipment

Land

Buildings

and other

fixed

structures

Machinery

and

equipment

Total

Not later than 1 year - - - 1,054 1,054

Later than 1 year and not

later than 5 years

- - - 596 596

Later than five years - - - - -

Total lease commitments - - - 1,650 1,650


VOTE 14




2011/12

Specialised

military

equipment

Land

Buildings

and other

fixed

structures

Machinery

and

equipment

Total

Not later than 1 year - - - 1,470 1,470

Later than 1 year and not

later than 5 years

- - - 422 422

Later than five years - - - - -

Total lease commitments 1,892 1,892

LESS: finance costs - - - 70 70

Total present value of

lease liabilities

- - - 1,892 1,822

22 Receivables for departmental revenue

Note 2012/13 2011/12

R’000 R’000

Tax revenue 9 9

Sales of goods and services other than capital assets 36 62

Fines, penalties and forfeits 5 -

Interest, dividends and rent on land 26 76

Sales of capital assets - 289

Transactions in financial assets and liabilities - 78

Transfers received (incl. conditional grants to be

repaid by provincial departments)

- 10

Other - 326

Total 76 850

22.1 Analysis of receivables for departmental revenue

Note 2012/13 2011/12

R’000 R’000

Opening balance 583 53

Less: amounts received 394 31

Add: amounts recognised 76 561

Less: amounts written-off/reversed as irrecoverable - -

Closing balance 265 583


VOTE 14




22.2 Receivables for department revenue written off

Note 2012/13 2011/12

R’000 R’000

Nature of losses

Bursary debt (14) (122)

Ex-employee (1) (66)

Other - (148)

Total (15) (336)

23 Irregular expenditure

23.1 Reconciliation of irregular expenditure

Note 2012/13 2011/12

R’000 R’000

Opening balance 1,946 3,736

Add: Irregular expenditure – relating to prior year 1,745 -

Add: Irregular expenditure – relating to current year 3,745 2,075

Less: Amounts condoned (1966) (3,865)

Less: Amounts recoverable (not condoned) - -

Less: Amounts not recoverable (not condoned) - -

Irregular expenditure awaiting condonation 5,470 1,946

Analysis of awaiting condonation per age

classification

Current year - 1,946

Prior years - -

Total - 1,946

23.2 Details of irregular expenditure – current year

Incident Disciplinary steps taken/criminal

proceedings

2012/13

R’000

Overtime Payment exceeding

30%of employee's salary pad for

April 2012 for Fixed Asset

Management Officials

Expenditure approved by MEC ex-post

facto.

20

Total 20


VOTE 14




23.3 Details of irregular expenditure condoned

Incident Condoned by (condoning authority) 2012/13

R’000

Exceeding of delegation on

authorising of payments for

Ethekwini Municipality

Disciplinary proceedings carried out.

Verbal warning and counselling

provided.

1,562

Property rates processed prior to

authorisation

Disciplinary proceedings carried out.

Written warning and counselling

provided.

284

Acting Allowance-exceeded

prescribed period 12 months

No disciplinary action taken. Official

resigned.

75

Payment for variation Order before

BAC Approval-Ethekwini

Accounting Officer approved expenditure

through ex-post facto.

25

Overtime Payment exceeding

30%of employee's salary paid for

April 2012 for Fixed Asset

Management Officials Register

Expenditure approved by MEC ex-post

facto.

20

Total 1,966

23.4 Details of irregular expenditures under investigation

Incident 2012/13

R’000

Payment made exceeding original order 8

Payments approved by incorrect delegated official 154

Acting Allowance-exceeded prescribed period 12 months 77

Appointment of sole supplier to assist with movable assets- current 161

Appointment of sole supplier to assist with movable assets- previous 1,744

Project awarded using two quotations instead of three 339

Petty Cash re-imbursement without receipts 1

Payment of Municipal services without invoices 10

Contracts awarded without declaration of interest by supplier 2,976

Total 5,470


VOTE 14




24 Fruitless and wasteful expenditure

24.1 Reconciliation of fruitless and wasteful expenditure

Note 2012/13 2011/12

R’000 R’000

Opening balance 4 -

Fruitless and wasteful expenditure – relating to prior

year

- -

Fruitless and wasteful expenditure – relating to

current year

30 47,166

Less: Amounts resolved (4) (47,162)

Less: Amounts transferred to receivables for

recovery

-

Fruitless and wasteful expenditure awaiting

resolution

30 4

24.2 Analysis of awaiting resolution per economic classification

24.3 Analysis of Current year’s fruitless and wasteful expenditure

Incident Disciplinary steps taken/criminal

proceedings

2012/13

R’000

Interest charged on rental

refunded. Tenant did not take

occupation of flat.

Under investigation 10

Duplicate invoices Under investigation 20

Total 30

2012/13 2011/12

R’000 R’000

Current 30 4

Capital - -


Total 30 4


VOTE 14




25 Key management personnel

No. of

Individuals

2012/13 2011/12

R’000 R’000

Political office bearers (provide detail below) 1 1,652 1,585

Officials:

Level 15 to 16 3 3,637 3,568

Level 14 (incl. CFO if at a lower level) 3 1,947 1,918

Family members of key management

personnel

-

Total 7,236 7,071

26 Impairment

Note 2012/13 2011/12

R’000 R’000

Impairment

Investments - -

Loans - -

Debtors -

Other 11,620 11,620

Total 11,620 11,620


VOTE 14




27 Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR

ENDED 31 MARCH 2013

Opening

balance

Curr Year

Adjust-

ments to

prior year

balances

Additions Disposals Closing

Balance

R’000 R’000 R’000 R’000 R’000

HERITAGE ASSETS - - - - -

Heritage assets - - - - -

MACHINERY AND

EQUIPMENT

103,943 (978) 20,132 2,274 120,823

Transport assets 44,572 - 10,894 1,458 54,008

Computer equipment 49,369 (891) 7,628 809 55,297

Furniture and office equipment 7,442 (87) 868 7 8,216

Other machinery and equipment 2,560 - 742 - 3,302

SPECIALISED MILITARY

ASSETS

- - - - -

Specialised military assets - - - - -

BIOLOGICAL ASSETS - - - - -

Biological assets - - - - -

TOTAL MOVABLE TANGIBLE

CAPITAL ASSETS

103,943 (978) 20,132 2,274 120,823


VOTE 14




27.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE

YEAR ENDED 31 MARCH 2013

Cash Non-cash (Capital

Work in

Progress

current

costs and

finance

lease

payments)

Received

current,

not paid

(Paid

current

year,

received

prior year)

Total

R’000 R’000 R’000 R’000 R’000



MACHINERY AND EQUIPMENT 18,802 - - (1,330) 20,132

Transport assets 9,468 - - 1,426 10,894

Computer equipment 7,724 - - (96) 7,628

Furniture and office equipment 868 - - - 868

Other machinery and equipment 742 - - - 742


ASSETS

- - - - -

Specialised military assets - - - - -

BIOLOGICAL ASSETS - - - - -

Biological assets - - - - -

TOTAL ADDITIONS TO

MOVABLE TANGIBLE

CAPITAL ASSETS

18,802 - - (1,330) 20,132


VOTE 14




27.2 Disposals

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE


Sold for

cash

Transfer

out or

destroyed

or

scrapped

Total

disposals

Cash

Received

Actual

R’000 R’000 R’000 R’000

HERITAGE ASSETS - - - -

Heritage assets - - - -

MACHINERY AND EQUIPMENT 1,458 816 2,274 2,152

Transport assets 1,458 - 1,458 2,152

Computer equipment - 809 809 -

Furniture and office equipment - 7 7 -

Other machinery and equipment - - - -


ASSETS

- - - -

Specialised military assets - - - -

BIOLOGICAL ASSETS - - - -

Biological assets - - - -

TOTAL DISPOSAL OF

MOVABLE TANGIBLE CAPITAL

ASSETS

1,458 816 2,274 2,152


VOTE 14




27.3 Movement for 2011/12

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR

ENDED 31 MARCH 2012

Opening

balance


balance

R’000 R’000 R’000 R’000



MACHINERY AND EQUIPMENT 75,179 29,719 955 103,943

Transport assets 29,310 16,055 793 44,572

Computer equipment 38,318 11,213 162 49,369

Furniture and office equipment 6,023 1,419 - 7,442

Other machinery and equipment 1,528 1,032 - 2,560

SPECIALISED MILITARY ASSETS - - - -




TOTAL MOVABLE TANGIBLE ASSETS 75,179 29,719 955 103,943

27.4 Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31

MARCH 2013

Specialised

military

assets

Intangible

assets

Heritage

assets

Machinery

and

equipment

Biological

assets

Total

R’000 R’000 R’000 R’000 R’000 R’000

Opening

balance

- - - 7,734 - 7,734

Curr Year

Adjustments to

Prior Year

balances

- - - (103) - (103)

Additions - - - 1,006 - 1006

Disposals - - - 74 - 74

TOTAL MINOR

ASSETS

- - - 8,563 - 8,563


VOTE 14




Specialised

military

assets

Intangible

assets

Heritage

assets

Machinery

and

equipment

Biological

assets

Total

Number of R1

minor assets

- - - 19,047 - 19,047

Number of

minor assets

at cost

- - - 4,955 - 4,955

TOTAL

NUMBER OF

MINOR

ASSETS

- - - 24,002 - 24,002

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31

MARCH 2012

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

- - - 7,734 - 7,734

Additions - - - - - -

Disposals - - - - - -

TOTAL MINOR

ASSETS

- - - 7,734 - 7,734

Specialised

military

assets

Intangible

assets

Heritage

assets

Machinery

and

equipment

Biological

assets

Total

Number of R1

minor assets

- - - 18,329 - 18,329

Number of

minor assets

at cost

- - - 4,992 - 4,982

TOTAL

NUMBER OF

MINOR

ASSETS

- - - 23,321 - 23,321


VOTE 14




27.5 Movable assets written off

MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2013

Specialised

military

assets

Intangible

assets

Heritage

assets

Machinery

and

equipment

Biological

assets

Total

R’000 R’000 R’000 R’000 R’000 R’000

Assets written

off

- - - - - -

TOTAL

MOVABLE

ASSETS

WRITTEN OFF

- - - - - -

MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2012

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

Assets written

off

- - - - - -

TOTAL

MOVABLE

ASSETS

WRITTEN OFF

- - - - - -


VOTE 14




28 Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED

31 MARCH 2013

Opening

balance

Current

Year

Adjust-

ments to

prior year

balances


Balance

R’000 R’000 R’000 R’000 R’000

COMPUTER SOFTWARE 2,519 (83) 3,893 - 6,329

MASTHEADS AND PUBLISHING

TITLES

- - - - -

PATENTS, LICENCES,

COPYRIGHT, BRAND NAMES,

TRADEMARKS

28 - - - 28

RECIPES, FORMULAE,

PROTOTYPES, DESIGNS,

MODELS

- - - - -

- - - - -

SERVICES AND OPERATING

RIGHTS

TOTAL INTANGIBLE CAPITAL

ASSETS

2,547 (83) 3,893 - 6,375


VOTE 14




28.1 Additions

ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED

31 MARCH 2013

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

COMPUTER SOFTWARE 3,893 - - - 3,893

MASTHEADS AND

PUBLISHING TITLES

- - - - -

PATENTS, LICENCES,


TRADEMARKS

- - - - -

RECIPES, FORMULAE,


MODELS

- - - - -


RIGHTS

- - - - -

TOTAL ADDITIONS TO

INTANGIBLE CAPITAL ASSETS

3,893 - - - 3,893


VOTE 14




28.2 Disposals

DISPOSALS OF INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR

ENDED 31 MARCH 2013

Sold for

cash

Transfer

out or

destroyed

or

scrapped

Total

disposals

Cash

Received

Actual

R’000 R’000 R’000 R’000

COMPUTER SOFTWARE - - - -

MASTHEADS AND

PUBLISHING TITLES

- - - -

PATENTS, LICENCES,


TRADEMARKS

- - - -

RECIPES, FORMULAE,


MODELS

- - - -


RIGHTS

- - - -

TOTAL DISPOSALS OF

INTANGIBLE CAPITAL ASSETS

- - - -


VOTE 14





MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR

ENDED 31 MARCH 2012

Opening

balance


balance

R’000 R’000 R’000 R’000

COMPUTER SOFTWARE 1,469 1,050 - 2,519

MASTHEADS AND PUBLISHING TITLES - - - -

PATENTS, LICENCES, COPYRIGHT, BRAND

NAMES, TRADEMARKS

28 - - 28

RECIPES, FORMULAE, PROTOTYPES,

DESIGNS, MODELS

- - - -

SERVICES AND OPERATING RIGHTS - - - -

TOTAL INTANGIBLE CAPITAL ASSETS 1,497 1,050 - 2,547


VOTE 14




29 Immovable Tangible Capital Assets

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE


Opening

balance

Curr Year

Adjust-

ments to

prior year

balances


Balance

R’000 R’000 R’000 R’000 R’000

BUILDINGS AND OTHER

FIXED STRUCTURES

11,176,216 366,659 670,311 4,870 12,208,315

Dwellings 357,247 (152,490) 4,402 1,170 207,989

Non-residential buildings 10,818,968 519,149 665,909 3,700 12,000,326

Other fixed structures - - - - -



LAND AND SUBSOIL ASSETS 416,234 (18,158) 7,433 - 405,149

Land 416,234 (18,518) 7,433 - 405,149

Mineral and similar non-

regenerative resources

TOTAL IMMOVABLE

TANGIBLE CAPITAL ASSETS

11,592,450 348,141 677,744 4,870 12,613,464

Included in the immovable assets totalling R12,613,464,000 (2012: R11,592,450,000), an

amount of R257,744,879.80 (2012: R272 ,046,378), relates to properties where majority of the

land parcels upon which facilities exist are registered in the name of owners (RSA, etc) other

than the Provincial Government of KwaZulu-Natal.


VOTE 14




Facilities used by the provincial government located on un-surveyed land and land

governed by the KwaZulu-Natal Ingonyama Trust Amendment Act (pre 24 April 1994)

(ITB), are recorded in the table below in terms of paragraph 4e of the Departmental

Guide for the Accounting for Immovable Assets (Property):

Category of land

No. of facilities Functions of facilities

Average duration of agreements to use

ITB 3792 Education and health services

POST 1994: In the previous years, Permission to Occupy (PTO's) existed in respect of assets built on Tribal & ITB land. Since the last financial year the Department has formalized this in line with the provisions of Ingonyama Trust Act,1994. In this instance 40 year leases are signed, this is a continuous process. PRE 1994: These will be transferred in respect of vesting process.

R 293 1112 Education and health services

The transfer of these properties from the names of the Municipalities to the Prov. Govt. of KZN in in terms of Proclamation 84 of 1996.

Section 14 818 Education and health services

These are public schools on private land administered in terms of SA Schools Act,1996. The leases are signed by the Department of Education in terms of this legislation.


VOTE 14




29.1 Additions

ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE


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

287,907 459,290 (76,886) - 670,311

Dwellings - 4,402 - - 4,402

Non-residential buildings 287,907 454,888 (76,886) - 665,909

Other fixed structures - - - - -



LAND AND SUBSOIL ASSETS 7,433 - - - 7,433

Land 7,433 - - - 7,433



- - - - -

TOTAL ADDITIONS TO

IMMOVABLE TANGIBLE

CAPITAL ASSETS

295,340 459,290 (76,886) - 677,744


VOTE 14




29.2 Disposals

DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE


Sold for

cash

Transfer

out or

destroyed

or

scrapped

Total

disposals

Cash

Received

Actual

R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED

STRUCTURES

4,870 - 4,870 13,714

Dwellings 1,170 - 1,170 1,214

Non-residential buildings 3,700 - 3,700 12,500

Other fixed structures - - -



LAND AND SUBSOIL ASSETS - - - -

Land - - - -



- - - -

TOTAL DISPOSALS OF

IMMOVABLE TANGIBLE

CAPITAL ASSETS

4,870 - 4,870 13,714


VOTE 14





MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE


Opening

balance


balance

R’000 R’000 R’000 R’000


STRUCTURES

11,028,030 148,186 - 11,176,216

Dwellings 357,247 - - 357,247

Non-residential buildings 10,670,782 148,186 - 10,818,968

Other fixed structures - - - -



LAND AND SUBSOIL ASSETS 414,694 1,540 - 416,234

Land 414,694 1,540 - 416,234

Mineral and similar non-regenerative resources - - - -

TOTAL IMMOVABLE TANGIBLE ASSETS 11,442,724 149,726 - 11,592,450

29.4 Immovable assets valued at R1

IMMOVABLE ASSETS VALUED AT R1 IN THE ASSET REGISTER AS AT 31 MARCH 2013

Buildings

and other

fixed

structures

Heritage

assets

Land and

subsoil

assets

Total

R’000 R’000 R’000 R’000

R1 Immovable assets 8,323 - 6 8,329

TOTAL 8,323 - 6 8,329

IMMOVABLE ASSETS VALUED AT R1 IN THE ASSET REGISTER AS AT 31 MARCH 2012

Buildings

and other

fixed

structures

Heritage

assets

Land and

subsoil

assets

Total

R’000 R’000 R’000 R’000

R1 Immovable assets 3,490 - 8 3,498

TOTAL 3,490 - 8 3,498

29.5 Immovable assets written off


VOTE 14




IMMOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2013

Buildings

and other

fixed

structures

Heritage

assets

Land and

subsoil

assets

Total

R’000 R’000 R’000 R’000 R’000

Assets written

off

- - - - -

TOTAL

IMMOVABLE

ASSETS

WRITTEN OFF

- - - - -

IMMOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2012

Buildings

and other

fixed

structures

Heritage

assets

Land and

subsoil

assets

Total

R’000 R’000 R’000 R’000 R’000

Assets written

off

- - - - -

TOTAL

IMMOVABLE

ASSETS

WRITTEN OFF

- - - - -


VOTE 14

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS



30 STATEMENT OF CONDITIONAL GRANTS RECEIVED

NAME OF

DEPARTMENT

GRANT ALLOCATION SPENT 2011/12

Division of

Revenue

Act/

Provincial

Grants

Roll

Overs

DORA

Adjustments

Other

Adjustments

Total

Available

Amount

received

by

department

Amount

spent by

department

Under /

(Overspe

nding)

% of

available

funds

spent by

department

Division

of

Revenue

Act

Amount

spent by

department

R’000 R’000 R'000 R'000 R’000 R'000 R'000 R'000 % R’000 R’000

Devolution of

property Rates

Grant Fund

551,100 - - - 551,100 551,100 402,443 148,657 73% 505,880 489,480

EPWP Incentive

Grant

3,540 - - - 3,540 3,540 5,292 (1,752) 149% 1,961 4,683

554,640 - - - 554,640 554,640 407,735 146,905 507,841 494,163

Department are reminded of the requirement to certify that all transfers in terms of this Act were deposited into the primary bank account of the

province or, where appropriate, into the CPD account of the province.

Devolution of Property rates grant to provinces is for the payment of rates to Municipalities.

EPWP Incentive grant is for the government programme aimed at alleviating poverty and unemployment.


VOTE 14




ANNEXURE 1A

STATEMENT OF UNCONDITIONAL GRANTS AND TRANSFERS TO MUNICIPALITIES

NAME OF

MUNICIPALITY

GRANT ALLOCATION TRANSFER SPENT 2011/12

Amount

Roll

Overs

Adjust-

ments

Total

Available

Actual

Transfer

% of

Available

funds

Transferred

Amount

received

by

municipality

Amount

spent by

municipality

% of

available

funds

spent by

municipalit

y

Total

Available

R’000 R’000 R'000 R'000 R'000 % R'000 R'000 % R’000

Ethekwini Metro 338,149 - - 338,149 195,659 58% 195,659 195,659 100% 281,849

Ugu Municipalities 15,426 - - 15,426 8,840 57% 8,840 8,840 100% 8,337

Umgugundlovu

Municipalities

53,871 - - 53,871 56,493 105% 56,493 56,493 100% 61,919

Uthukela

Municipalities

26,720 - - 26,720 24,476 92% 24,476 24,476 100% 20,451

Umzinyathi

Municipalities

20,385 - - 20,385 17,926 88% 17,926 17,926 100% 20,497

Amajuba

Municipalities

16,138 - - 16,138 21,437 133% 21,437 21,437 100% 8,218

Zululand

Municipalities

19,890 - - 19,890 20,725 104% 20,725 20,725 100% 15,475

*Zululand

Municipalities

8,029 - - 8,029 - - - 7,922

Umkhanyakude

Municipalities

9,178 - - 9,178 11,838 129% 11,838 11,838 100% 9,312


VOTE 14




Uthungulu

Municipalities

11,283 - - 11,283 13,204 117% 13,204 13,204 100% 21,589

Ilembe

Municipalities

23,662 - - 23,662 13,303 56% 13,303 13,303 100% 26,617

Sisonke

Municipalities

11,276 - - 11,276 11,709 104% 11,709 11,709 100% 10,581

Non Pay: No

Regional Identifier

273 - - 273 - - - -

Lejwelaputswa

Municipalities

- - - - 4 4 4 -

Eku Ekurhuleni

Municipalities

- - - - 79 79 79 -

Sedibeng

Municipalities

- - - - 31 31 31 -

Nkangala

Municipalities

- - - - 19 19 19 -

PD Licences 139 - - 139 322 322 322 169

PD Claims against

the state

- - - - 47 47 47 -

554,419 - - 554,419 396,112 396,112 396,112 100% 492,936

Note that the personnel expenditure for the grant budget of R 4,849million is not included in these figures as it forms part of compensation of

employees and not transfers and subsidies, this is in line with the Standard Chart of Accounts classifications.


VOTE 14




ANNEXURE 1B

STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS

DEPARTMENT/ AGENCY/ ACCOUNT

TRANSFER ALLOCATION TRANSFER 2011/12

Adjusted

Appro-

priation

Roll

Overs

Adjust-

ments

Total

Available

Actual

Transfer

% of

Available

funds

Transferred

Appro-

priation Act

R'000 R'000 R'000 R'000 R'000 % R'000

Compensation Commissioner 220 - - 220 1 0% 0

Skills Development 394 - - 394 394 100% 375

614 - - 614 395 375


VOTE 14




ANNEXURE 1C

STATEMENT OF TRANSFERS TO HOUSEHOLDS

HOUSEHOLDS

TRANSFER ALLOCATION EXPENDITURE 2011/12

Adjusted

Appropriati

on

Act

Roll

Overs

Adjust-

ments

Total

Available

Actual

Transfer

% of

Available

funds

Transferred

Appro-

priation

Act

R'000 R'000 R'000 R'000 R'000 % R'000

Transfers

H/H BURSARIES (NON EMPLOYEES) 2,071 - - 2,071 1,653 80% 1,671

H/H: CLAIMS AGAINST STATE (CASH) - - - - - 25

2,071 - - 2,071 1,653 1,696

Subsidies

H/H EMPL S/EMPL S BEN: INJURY ON DUTY 143 - - 143 41 29% 292

H/H EMPL S/EMPL S BEN: LEAVE GRATUITY 3,053 - - 3,053 7,441 244% 4,483

H/H EMPL S/EMPL S BEN: POST RETIREMENT BENEF 102 - - 102 - 98

H/H EMPL S/EMPL S BEN: SEVERANCE PACKAGE - - - - - 6

3,298 - - 3,298 7,482 4,879

Total 5,369 - - 5,369 9,135 6,575


VOTE 14




ANNEXURE 1D

STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE AND REMMISSIONS, REFUNDS AND PAYMENTS MADE AS AN ACT

OF GRACE

NATURE OF GIFT, DONATION OR SPONSORSHIP

(Group major categories but list material items including name of organisation

2012/13 2011/12

R’000 R’000

Paid in cash

Donation paid to Malcomes High School 3 100

Port Shepstone Shotokan Club 50 -

Phoenix School Sports Club 10 -

Subtotal 63 100

Made in kind

Donation of Computers to Umkhanyakude Flagship Project - 7

Subtotal - 7

TOTAL 63 107


VOTE 14




ANNEXURE 2A

STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2013 –LOCAL

Guarantor

institution

Guarantee in

respect of

Original

guaranteed

capital

amount

Opening

balance

1 April

2012

Guarantees

draw

downs

during the

year

Guarantees

repayments/

cancelled/

reduced/

released

during the

year

Revaluations Closing

balance

31 March

2013

Guaranteed

interest for

year ended

31 March

2013

Realised

losses not

recoverable

i.e. claims

paid out

R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000

Housing

ABSA 1,062 122 176 102 196

FIRSTRAND

BANK

186 37 - 37 -

ITHALA 67 13 - 13 -

NEDBANK 240 48 - 48 -

STANDARD

BANK

80 16 - 16 -

Subtotal 1,635 236 176 216 196

Total 1,635 236 176 216 196


VOTE 14




ANNEXURE 2B

STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2013

Nature of Liability

Liabilities incurred

during the year

Liabilities paid/cancelled/reduced during the

year

Liabilities recoverable (Provide

details hereunder)

Opening Closing

Balance Balance

1 April 2012 31 March

2013

R’000 R’000 R’000 R’000 R’000

Claims against the department

Claims against the department 15,835 2,781 9,661 - 8,995

Subtotal 15,835 2,781 9,661 - 8,995

TOTAL 15,835 2,781 9,661 - 8,995


VOTE 14




ANNEXURE 3

CLAIMES RECOVERABLE

Government Entity

Confirmed balance outstanding

Unconfirmed balance outstanding Total

31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012

R’000 R’000 R’000 R’000 R’000 R’000

Department

KZN Dept of Agriculture, Environmental Affairs & Rural Development

18,455

-

161

15,786

18,616 15,786

KZN Dept of Arts & Culture 7 609 152 81 159 690

KZN Dept of Community Safety and Liaison - 325 354 - 354 325

KZN Dept of Co-operative Governance & Traditional Affairs 5,727 4,104 346 320 6,073 4,424

KZN Dept of Economic Development & Tourism 2,105 - 1,019 2,230 3,124 2,230

KZN Dept of Education 366,691 208,496 1,526 - 368,217 208,496

KZN Dept of Health 10,901 - 13,201 30,529 24,102 30,529

KZN Dept of Human Settlements - - 1,392 80 1,392 80

KZN Office of the Premier - - (5,201) 1,720 (5,201) 1,720

KZN Legislature - 3,191 5,482 2,722 5,482 5,913

KZN Provincial Treasury - 328 899 - 899 328

KZN Dept of Social Development 110 - 6,466 15,749 6,576 15,749

KZN Dept of Sport and Recreation 905 2,007 1,300 698 2,205 2,705

The Royal Household - - 145 217 145 217

KZN Dept of Transport - 3,306 3,102 66 3,102 3,372

National Depart of Justice - - - 4 - 4

National Public Works - - 95 50 95 50

SAPS - - 73 55 73 55

National Department of Labour - - 12 16 12 16


VOTE 14




Government Communication and Information Systems - - 35 35 35 35

National Health and Soc Dev - - 6 6 6 6

Education Western Cape - - 11 - 11 -

Water Affairs - - 6 - 6 -

404,901 222,366 30,582 70,364 435,483 292,730

Other Government Entities

SASSA - - 8,739 8,906 8,739 8,906

Ezemvelo KZN Wildlife - - 14 14 14 14

FAZ - - 37 23 37 23

SITA - - 19 14 19 14

- - 8,809 8,957 8,809 8,957

TOTAL 404,901 222,366 39,391 79,321 444,392 301,687


VOTE 14




ANNEXURE 4

INTER-GOVERNMENT PAYABLES

GOVERNMENT ENTITY

Confirmed balance outstanding

Unconfirmed balance outstanding TOTAL

31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012

R’000 R’000 R’000 R’000 R’000 R’000

DEPARTMENTS

Current

Department of Health - CPS - 15 1 - 1 15

Department of Justice 339 271 177 217 516 488

Office of the Premier 26 431 892 - 918 431

Department of Transport 846 50 - 164 846 214

Provincial Legislature - 49 - - - 49

Dept of Social Development 32 - 86 - 118 -

Department of Education 2 - - 10 2 10

Department of Agriculture & environmental Affairs

-

-

-

2

- 2

Government Printing 82 12 - 2 82 14

Department of Trade and Industry

-

-

-

15

-

15

Department of Roads and Public Works

-

-

-

1

-

1

PALAMA 7 - 19 480 26 480

Subtotal 1,334 828 1,175 891 2,509 1,719

Total 1,334 828 1,175 891 2,509 1,719


VOTE 14




ANNEXURE 5

INVENTORY

Inventory Note Quantity 2012/13 Quantity 2011/12

R’000 R’000

Opening balance 116,172 3,999 118,440 4,233

Add/(Less): Adjustments to prior year balance - - 252 (89)

Add: Additions/Purchases - Cash 74,042 1,541 245,361 2,395

Add: Additions - Non-cash 2,080 14 309 3

(Less): Disposals - - - -

(Less): Issues (43,537) (1,510) (75,331) (2,469)

Add/(Less): Adjustments 4,650 79 (172,859) (74)

Closing balance 154,407 4,123 116,172 3,999


VOTE 14



192

ANNEXURE 6

MOVEMENT IN CAPITAL WORK IN PROGRESS

MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2013

Opening

balance

Current

Year

Capital

WIP

Completed

Assets

Closing

balance

R’000 R’000 R’000 R’000



MACHINERY AND EQUIPMENT - - - -

Transport assets - - - -

Computer equipment - - - -

Furniture and office equipment - - - -

Other machinery and equipment - - - -

SPECIALISED MILITARY ASSETS - - - -





STRUCTURES

58,190 71,274 4,941 124,523

Dwellings - - - -

Non-residential buildings 58,190 71,274 4,941 124,523

Other fixed structures - - - -

LAND AND SUBSOIL ASSETS - - - -

Land - - - -

Mineral and similar non-regenerative resources - - - -

COMPUTER SOFTWARE - - - -

Computer software - - - -

MASTHEADS AND PUBLISHING TITLES - - - -

Mastheads and publishing titles - - - -

PATENTS, LICENCES, COPYRIGHT, BRAND

NAMES, TRADEMARKS

- - - -

Patents, licences, copyright, brand names and

trademarks

- - - -


VOTE 14



193

RECIPES, FORMULAE, PROTOTYPES,

DESIGNS, MODELS

- - - -

Recipes, formulae, prototypes, designs, models - - - -

SERVICES AND OPERATING RIGHTS - - - -

Services and operating rights - - - -

TOTAL 58,190 71,274 4,941 124,523


VOTE 14

HUMAN RESOURCE MANAGEMENT


194

4. HUMAN RESOURCE MANAGEMENT – 2012/13

The statistics and information published in the Human Resources Management part of the annual report are required in terms of Chapter 1, Part III J.3 of the Public Service Regulations, 2002 and have been prescribed by the Minister for the Public Service and Administration for all departments within the Public Service. The tables were obtained from Department of Public Service and Administration (DPSA). Any input or clarification required should be directed to:- Henk Serfontein Department of Public Service and Administration [email protected] For a detailed description and explanation of the terminology used in this section of the report, please consult the publication from the DPSA entitled „A guide to understanding the oversight report of departmental annual reports‟. A copy of the guide is available from all departments or can be accessed from the DPSA website (www.dpsa.gov.za ).

Service delivery

All departments are required to develop a Service Delivery Improvement (SDI)

Plan. The following tables reflect the components of the SDI plan as well as

progress made in the implementation of the plans.

4.1 Service delivery

All departments are required to develop a Service Delivery Improvement (SDI) Plan. The following tables reflect the components of the SDI plan as well as progress made in the implementation of the plans.

Table 1.1 – Main services provided and standards

Main services Actual

customers Potential

customers Standard of service

Actual achievement against standards

1. Recruitment and selection of prospective employees.

General public, other state employees, Departmental employees.

Same As per approved HRM SOPS The recruitment process currently taking approximately eight months to finalise, considering the implementation of vetting and qualification verification.

2. Management of employment changes within the Department (staff mobility)

Departmental employees and other Government employees.

Same As per approved HRM SOPS - Service terminations finalized within the officials last month of service. - Finalisation of transfers within one month of request.

3. Human Resource Development

Departmental employees; Prospective employees; Accredited Training service providers

Same As per approved HRM SOPS Development and implementation of WSP.

4. Development and implementation

- Departmental employees. - Immediate family

Contractors and consultants

As per approved HRM SOPS Approved and implemented Policies for EHW

mailto:[email protected]

http://www.dpsa.gov.za/


VOTE 14



195

of Employee Health and Wellness (EHW)

members employed by the Department.

5.Mainstreaming equity (gender, disability) throughout the Department‟s policies, programmes and practices.

- Departmental employees - Office of the Premier - Department of Labour - Prospective employees - Department of Public Service & Administration

Contractors and consultants employed by the Department.

Compliance with National targets in terms of 50:50 gender representation and 2% disability and Race as per Economically Active Population in KZN

All 5 Offices with the Department have their equity plans which serve as input to Departmental Employment Equity Plan. Annual Employment Equity report was submitted to Department of Labour. Employment Equity Committee meetings are held to monitor the compliance Public Works Offices are also accessible to people with disabilities throughout the province. Audit conducted within the Departmental staff to identify needs and provide assistive devices. 25% women at SMS senior management level against the National target of 50%.

Table 1.2 – Consultation arrangements with customers

Type of arrangement Actual Customers Potential Customers

Actual achievements

1. Consultative forums; Roadshows/workshops internal circulars; newsletters/ Departmental Website.

Departmental employees

Same - Elimination of communication barriers - Awareness of Department Policies and Procedures amongst staff

Table 1.3 – Service delivery access strategy

Access Strategy Actual achievements

* Establishment of Help desk for EAP Services Trained EAP focal persons

* Help desk services for SMME‟s Accurately completed tender documentation. Awareness and training for SMME‟s

* Conversion of state building for easy access to people with disabilities.

Buildings converted by the Department as well as for client departments.

Strategy for Reasonable Access also developed. Upon approval of the strategy, it will be implemented in the Department.

Table 1.4 – Service information tool

Types of information tool Actual achievements

Departmental website, newsletters, advertisements, circulars and standing radio slots

Posting of tender documents, vacancy advertisement, SOP‟s Policies, Translation of policies into IsiZulu


VOTE 14



196

Table 1.5 – Complaints mechanism

Complaints Mechanism Actual achievements

Fault logging office per region

Whistle blowing toll free lines

Suggestion boxes

Approved Grievance Procedure

Facilities exist for complaints to be received and resolved. Service commitment charter is in place and implemented.

4.2 Expenditure – (01/04/2012 – 31/03/2013)

Departments budget in terms of clearly defined programmes. The following tables summarise final audited expenditure by programme (Table 2.1) and by salary bands (Table 2.2). In particular, it provides an indication of the amount spent on personnel costs in terms of each of the programmes or salary bands within the department.

TABLE 2.1 – Personnel costs by programme, 2012/13

Programme Total

Expenditure (R’000)

Personnel Expenditure

(R’000)

Training Expenditure

(R’000)

Professional and Special

Services (R’000)

Personnel cost as a percent of

total expenditure

Average personnel cost per employee

(R’000)

Employment

Prog 1: Administration

285,966 197,989 1,104 3,021 69.2 223 985

Prog 2: Real Estate 474,335 36,567 4 28,649 7.7 250.46 146 Prog 3: Prov of buildings

373,010 203,931 6,562 423 54.6 195.49 1169

Total 1,133,311

438,487 7,670 32,093 38.7 211.40 2300

TABLE 2.2 – Personnel costs by salary bands, 2012/13

Salary bands Personnel

Expenditure (R’000)

% of total personnel

cost

Average Cost per

Employee(R)

Total Personnel

Cost

Number of employees

Lower skilled (Levels 1-2) 48,233 11 98.02 438,487 492

Skilled (Levels 3-5) 91,977

21 109.11 438,487 843

Highly skilled production (Levels 6-8)

140,855

32 235.15 438,487 599

Highly skilled supervision (Levels 9-12)

105,581

24 434.35 438,487 243

Senior management (Levels 13-16)

23,650

5 788 438,487 30

Contract (1-2) 352 0.1 176 438,487 2

Contract (3-5) 1,488 0.3 186 438,487 8

Contract (6-8) 6,904 1.6 246.57 438,487 28

Contract (9-12) 16,820 3.8 357.87 438,487 47

Contract (13-16) 1,710 0.4 570 438,487 3

Periodical Remuneration 917 0.2 183.40 438,487 5

Total 438,487 100 190.65 438,487 2300


VOTE 14



197

The following tables provide a summary per programme (Table 2.3) and salary bands (Table 2.4), of expenditure incurred as a result of salaries, overtime, home owners allowance and medical assistance. In each case, the table provides an indication of the percentage of the personnel budget that was used for these items.

TABLE 2.3 – Salaries, Overtime, Home Owners Allowance and Medical Assistance by programme, 2012/13

Programme Salaries Overtime Home Owners Allowance Medical Assistance

Amount (R‟000)

Salaries as a % of

personnel cost

Amount (R‟000)

Overtime as a % of

personnel cost

Amount (R‟000)

HOA as a % of personnel

cost

Amount (R‟000)

Medical Assistance as

a % of personnel cost

1 Administration 137,529

31.4

26

0.01

8,935

2

14,011

3.2

2 Real Estate 27,091

6.2

219

0.6

997

0.2

1,839

0.4

3 Provide building Structure & Equipment

138,689

31.6

299

0.2

8,934

2

12,654

2.9

Total 303,309

69.2

544

0.1

18,866

4.3

28,504

6.5

TABLE 2.4 – Salaries, Overtime, Home Owners Allowance and Medical Assistance by salary bands, 2012/13

Salary Bands

Salaries Overtime Home Owners Allowance Medical Assistance Total Cost Per Salary

Band

Amount (R‟000)

Salaries as a % of

personnel

cost

Amount (R‟000)

Overtime as a % of

personnel cost

Amount (R‟000)

HOA as a % of personnel

cost Amount (R‟000)

Medical Assistance as

a % of personnel

cost

Lower skilled (Levels 1-2)

28,678

6.5

39

0.01

4,187

1

5,102

1.2

38.,006

Skilled (Levels 3-5)

55,351

12.6

36

0.01

6,580

1.5

9,997

2.3

71,964


96,763

22.1

312

0.1

5,638

1.3

8,989

2.1

111,702


75,327

17.2

157

0.04

1,761

0.4

3,754

0.9

80,999


VOTE 14



198


23,715 5.4 0 0 141 0.03 530 0.1 24,386

Contract (1-2) 351 0.01 0 0 0 0 0 0 351

Contract (3-5) 1,589 0.4 0 0 0 0 0 0 1,589

Contract (6-8) 5,767 1.3 0 0 0 0 0 0 5,767

Contract (9-12)

14,443 3.3 0 0 201 0.1 104 0.02 14,748

Contract (13-16)

1,325 0.3 0 0 358 0.1 28 0.01 1,711

Periodical Remuneration

0 0 0 0 0 0 0 0 999

Total 303,309 69.2 544 0.1 18,866 4.3 28,504 6.5 351223

4.3 Employment and Vacancies

The following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment. This information is presented in terms of three key variables: - programme (Table 3.1), salary band (Table 3.2) and critical occupations (Table 3.3). Departments have identified critical occupations that need to be monitored. Table 3.3 provides establishment and vacancy information for the key critical occupations of the department.

The vacancy rate reflects the percentage of posts that are not filled.

TABLE 3.1 – Employment and vacancies by programme, @ 31 March 2013

Programme Number of

posts Number of posts

filled Vacancy Rate

Number of posts filled additional to the establishment

1 Administration 927 885 4.5 0

2 Real Estate 141 101 28.4 45

3 Provide building Structure & Equipment

947 862 9 181

Total 2015 1848 8.3 226

TABLE 3.2 – Employment and vacancies by salary bands, 31 March 2013

Salary band Number of


filled Vacancy Rate


Lower skilled (Levels 1-2) 391 301 23 91

Skilled(Levels 3-5) 683 620 9.2 97

Highly skilled production(Levels 6-8) 611 589 0.5 10

Highly skilled supervision (Levels 9-12) 233 223 4.3 20

Senior management (Levels 13-16) 31 30 3.2 0

Contract (Levels 1-2) 2 2 0 0





Periodic Remuneration 5

Total 2015 1848 8.3 226


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199

TABLE 3.3 – Employment and vacancies by critical occupation, @ 31 March 2013

Critical occupations Number of


filled Vacancy Rate


Engineer 32 10 68.8 0

Architect 31 11 64.5 0

Quantity Survey 21 9 574 0

Project Manager 63 24 62 0

Total 147 54 63.3 0

4.4 Job Evaluation

The Public Service Regulations, 1999 introduced job evaluation as a way of ensuring that work of equal value is remunerated equally. Within a nationally determined framework, executing authorities may evaluate or re-evaluate any job in his or her organisation. In terms of the Regulations all vacancies on salary levels 9 and higher must be evaluated before they are filled. This was complemented by a decision by the Minister for the Public Service and Administration that all SMS jobs must be evaluated before 31 December 2002.

The following table (Table 4.1) summarises the number of jobs that were evaluated during the year under review. The table also provides statistics on the number of posts that were upgraded or downgraded.

TABLE 4.1 – Job Evaluation, 1 April 2012 to 31 March 2013

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

Salary band Number of

posts

Number of Jobs

Evaluated

% of posts evaluated by salary bands

Posts Upgraded Posts downgraded

Number % of posts evaluated Number % of posts evaluated


406 149 37 0 0 0 0

Contract (1-2) 2 1 50 0 0 0 0

Contract (3-5) 8 0 0 0 0 0 0

Contract (6-8) 28 0 0 0 0 0 0

Contract (9-12) 47 0 0 0 0 0 0

Contract (Levels 13-16)

0 0 0 0 0 0 0

Skilled (Levels 3-5) 697 0 0 0 0 0


584

32

5.4

4

0.7

0

0


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TABLE 4.2 – Profile of employees whose salary positions were upgraded due to their posts being upgraded, 1 April 2012 to 31 March 2013

Beneficiaries African Asian Coloured White Total

Female 31 4 2 0 37

Male 12 4 0 0 16

Total 43 8 2 0 53

Employees with a disability 1

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

TABLE 4.3 – Employees whose salary level exceeds the graded determined by job

evaluation, 1 April 2012 to 31 March 2013 (in terms of PSR 1.V.C.3)

Occupation Number of employees

Job evaluation level

Remuneration level

Reason for deviation

Xxx

Xxx

Xxx

Xxx

Total Number of Employees whose salaries exceeded the level determined by job evaluation in 2010/11 Percentage of total employment


233

15

6.4

0

0

0

0

Senior Management Service Band A

31

0

0

0

0

0

0

Senior Management Service Band B

2

0

0

0

0

0

0

Senior Management Service Band C

8

0

0

0

0

0

0

Senior Management Service Band D

17

0

0

0

0

0

0

Total 2063 197 9.8 4 0.7 0 0

None


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Table 4.4 summarises the beneficiaries of the above in terms of race, gender, and disability.

TABLE 4.4 – Profile of employees whose salary level exceed the grade determined by job evaluation, 1 April 2012 to 31 March 2013 (in terms of PSR 1.V.C.3)

Beneficiaries African Asian Coloured White Total

Female 0 0 0 0 0

Male 0 0 0 0 0

Total 0 0 0 0 0

Employees with a disability 0

[If there were no cases where the remuneration bands exceeded the grade determined by job evaluation, use the following table as TABLE 4.3]

Total Number of Employees whose salaries exceeded the grades determined by job evaluation in 2011/12

0

4.5 Employment Changes

This section provides information on changes in employment over the financial year. Turnover rates provide an indication of trends in the employment profile of the department. The following tables provide a summary of turnover rates by salary band (Table 5.1) and by critical occupations (Table 5.2). (These "critical occupations" should be the same as those listed in Table 3.3).

TABLE 5.1 – Annual turnover rates by salary band for the period 1 April 2012 to 31 March 2013

Salary Band

Number of employees per

band as on 1 April 2012

Appointments Service Terminations Turnover rate

Lower skilled (Levels 1-2) 485 0 23 4.7

Skilled (Levels 3-5) 645 68 86 12.1

Highly skilled production(Levels 6-8)

584 77 39 5.9

Highly skilled supervision(Levels 9-12)

254 50 21 9.5

Senior Management Service (Level 13 – 16)

28 3 1 3.2

Contract (1-2)Permanent 0 0 0 0

Contract (3-5) Permanent

9 0 2 22.2


17 0 8 47


35 0 7 20

Contract (13-16) 1 0 0 0

Periodical Remuneration 5 0 0 0

Total 2063 198 187 8.3

T/over rate : No of employees + Appointments = X = No of terminations / x


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TABLE 5.2 – Annual turnover rates by critical occupation for the period 1 April 2012 to 31 March 2013

Occupation: Number of employees per

occupation as on 1 April 2012

Appointments and transfers into the

department

Terminations and transfers out of the

department Turnover rate

Engineer 7 2 0 0

Architect 10 7 8 47

Quantity Surveyor 6 4 3 30

Project Manager 16 17 11 33

Total 39 30 22 31.9

Table 5.3 identifies the major reasons why staff left the department.

Table 5.3 – Reasons why staff are leaving the department

Termination Type Number

% of total Terminations

% of Total Employment

Total Total Employment

Death 23 12.3 1.1 187 2074

Resignation 34 18.2 1.6 187 2074

Expiry of Contract 61 32.6 2.9 187 2074

Discharged due to ill-health 2 1.1 0.1 187 2074

Dismissal – misconduct 8 4.3 0.4 187 2074

Retirement 59 31.6 2.9 187 2074

Total 187 187 2074

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

9 187 2074

Table 5.4 – Granting of Employee Initiated Severance Packages

Category


0 0 0 0 0

Skilled(Levels 3-5)

0 0 0 0 0

Highly skilled product (Levels 6-8)

0 0 0 0 0

Highly skilled supervision (Levels9-12)

0 0 0 0 0

Total 0 0 0 0 0


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Table 5.5 – Promotions by critical occupation

Occupation Employees as at 1 April

2012

Promotions to

another salary level

Salary level promotions as a % of employees by occupation

Progressions to another notch within a salary

level

Notch progressions as a % of

employees by occupation

Engineer 7 0 0 0 0 Architect 10 0 0 0 0 Quant Surv 6 0 0 0 0 Project Managers

16 0 0 0 0

Total 390 0 0 0 0

Table 5.6 – Promotions by salary band

Salary Band Employees 1 April

2012

Promotions to

another salary level

Salary bands promotions as a % of employees by salary level

Progressions to another

notch within a salary level

Notch progressions as a % of

employees by salary band


485

0

0

210

43.3

Skilled(Levels 3-5) 645 13 2 530 82.2

Highly skilled product (Levels 6-8)

584

33

5.7

378

64.7

Highly skilled supervision (Levels9-12)

254

13

5.1

121

47.6

Snr management (Levels13-16)

28

0

0

19

67.9

Contract (Levels 1-2 )

0 0 0 0 0

Contract (Levels 3-5 )

9

0

0

0

0


17

4

23.5

0

0


35

1

2.9

3

8.6


1

0

0

0

0

Periodic Remuneration

5 0 0 0 0

Total 2063 64 3.1 1261 61.1


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4.6 Employment Equity

The tables in this section are based on the formats prescribed by the Employment Equity Act, 55 of 1998.

6.1 – Total number of employees (including employees with disabilities) in each of the following occupational categories as at 31 March 2013

Occupational categories (SASCO)

Male Female Total

African Coloured Indian White African Coloured Indian White

Legislators, senior officials and managers

16 0 6 2 3 0 2 1 30

Professionals 43 1 8 13 35 0 4 5 109

Technicians and assoc 101 2 11 10 139 3 21 23 310

Clerks 116 0 14 1 256 5 27 26 440

Service and sales workers 163 0 1 2 29 0 0 0 190

Craft and related trades workers 192 10 16 22 50 0 0 0 290

Plant and machine operators and assemblers

65 1 3 0 1 0 0 0 69

Elementary occupations 433 0 6 0 186 0 0 0 625

Other Perm 0 0 0 0 0 0 0

Total 1124 14 65 50 694 8 54 54 2063

Employees with disabilities 05

0

0

02

02

0

0

01

10

6.2 – Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2013

Occupational Bands Male Female

African Coloured Indian White African Coloured Indian White Total

Top Management 2 0 2 1 1 0 0 0 6

Senior Management 14 0 4 1 2 0 2 1 24

Professionally qualified and experienced specialists and mid-management

118 4 15 27 68 1 11 10 254

Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents

223

07

24

18

234

05

29

34

575

Semi-skilled and discretionary decision making

411

02

17

0

208

02

10

7

657

Unskilled and defined decision making

327

0

01

01

156

0

0

1

496

Contract(Senior Management) Permanent

01 0 0 0 0 0 0 0 1

Contract (Prof qualified)

18

0

0

02

12

0

2

1

35

Contract ( Skilled tech)

7

01

02

0

07

0

0

0

17

Contract (Semi skilled)

03

0

0

0

06

0

0

0

9

Contract (Unskilled) 0 0 0 0 0 0 0 0 0

Total

1124

14

65

50

694

08

54

54

2063


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6.3 – Recruitment for the period 1 April 2012 to 31 March 2013

Occupational Bands

Male Female


Senior Management

1 0 1 0 1 0 0 0 3


26 0 5 5 12 0 0 1 49


55 0 1 1 76 1 5 1 140


6 0 0 0 0 0 0 0 6

Contract (Senior Management) Permanent

0 0 0 0 0 0 0 0 0

Contract(Professionally Qualified)Permanent

0 0 0 0 0 0 0 0 0

Contract (Skilled Technical)

0 0 0 0 0 0 0 0 0

Contract Semi-Skilled)Permanent

0 0 0 0 0 0 0 0 0

Total

88 0 7 6 89 1 5 2 198

Employees with disabilities

0 0 0 0 0 0

0

0

0


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6.4 – Promotions for the period 1 April 2012 to 31 March 2013

Occupational Bands

Male Female


Top Management

0

0

0

0

0 0 0 0 0

Senior Management

0

0

0

0

0

0

0

0

0


4 0 1 0 5 0 0 1 11


12 0 4 0 31 2 4 0 53


0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0

Contract (Professionally qualified) Permanent

0 0 0 0 0 0 0 0 0

Contract (Semi-skilled) Permanent

0

0

0

0

0

0

0

0

0

Total

16 0 5 0 36 2 4 1 64

Employees with disabilities

1 0 0 0 0 0 0 0 1


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6.5 – Terminations for the period 1 April 2012 to 31 March 2013

Occupational Bands Male Female


Top Management

0 0 0 0 0 0 0 0 0

Senior Management 1 0 0 0 0 0 0 0 1


11 0 1 1 5 0 1 2 21


48 3 1 2 50 0 0 2 106


0 0 0 0 0 0 0 0 0


37 0 1 0 4 0 0 0 42

Contract (Senior Management) Perm

0 0 0 0 0 0 0 0 0

Contract ( Prof qualified) Permanent

4 0 0 1 2 0 0 0 7

Contract (Skilled technician) Permanent

8 0 0 0 0 0 0 0 8

Contract ( Semi-skilled) Permanent

0 0 0 0 2 0 0 0 2

Total 109 3 3 4 63 0 1 4 187

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

6.6 – Disciplinary action for the period 1 April 2012 to 31 March 2013

Male Female

African

Coloured Indian White African Coloured Indian White Total

Final written warning 5 0 1 0 3 0 0 0 9

Written Warning 0 0 0 0 0 0 0 0 0

Correctional Counseling 0 0 0 0 0 0 0 0 0

Verbal Warning

0 0 0 0 0 0 0 0 0

Suspended Without pay

3 0 0 0 0 0 0 0 3

Fine) 0 0 0 0 0 0 0 0 0

Demotion 0 0 0 0 0 0 0 0 0

Dismissal 0 0 0 0 0 0 0 0 0

Not guilty 0 0 1 0 1 0 0 0 2

Case withdrawn 3 0 1 0 2 0 0 0 6

Total 11 0 3 0 6 0 0 0 20


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6.7 – Skills development for the period 1 April 2012 to 31 March 2013

Occupational categories

Male Female

African

Coloured Indian White African Coloured Indian White Total


69 0 5 13 96 0 7 14 204

Professionals 25 1 3 12 20 0 0 3 64

Technicians and associate professionals

45 2 3 4 27 0 0 1 82

Clerks 134 0 14 3 228 2 12 11 404

Servi & sales wrks 3 0 0 0 0 0 0 0 3

Skilled agricult & fishery workers

0 0 0 0 0 0 0 0 0

Craft and related trades workers

0 0 0 0 0 0 0 0 0


3 0 0 0 0 0 0 0 3

Elementary occupations 15 0 0 0 3 0 0 0 18

Total 294 3 25 32 374 2 19 29 778

4.7 Performance Rewards

To encourage good performance, the department has granted the following performance rewards during the year under review. The information is presented in terms of race, gender, and disability (Table 6.1), salary bands (table 6.2) and critical occupations (Table 6.3).

TABLE 7.1 – Performance Rewards by race, gender, and disability, 01/04/2012 – 31/03/2013

Beneficiary Profile Cost

Number of

beneficiaries Total number of

employees in group % of total within group

Cost R,000 (Actual)

Average cost per employee (R,000)

African Female 110 699 15.7 915 8

African Male 156 1129 13.8 1,140 7

Asian Female 15 54 27.8 199 13

Asian Male 25 65 38.5 344 13

Coloured Female 2 8 25 20 10

Coloured Male 3 14 21.4 25 8

White Female 15 55 27.3 183 12

White Male 7 50 14 119 17

Employees with a disability 0 10 0 0 0

Total 333 2074 16.1 2944 9


Number of

beneficiaries Total number of

employees in group % of total within group

Cost R,000 (Actual)

Average cost per employee (R,000)

African Female 110 699 15.7 915 8

African Male 156 1129 13.8 1,140 7

Asian Female 15 54 27.8 199 13

Asian Male 25 65 38.5 344 13

Coloured Female 2 8 25 20 10

Coloured Male 3 14 21.4 25 8

White Female 15 55 27.3 183 12

White Male 7 50 14 119 17

Employees with a disability 0 10 0 0 0

Total 333 2074 16.1 2944 9


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TABLE 7.2 – Performance Rewards by salary bands for personnel below Senior Management Service, 1 April 2012 to 31 March 2013

Salary Bands Beneficiary Profile Cost

Number of

beneficiaries Number of employees

% of total within salary bands

Total Cost (R‟000)

Average cost per

employee R,000

Total cost as a % of the total personnel

expenditure


69 462 14.9 290 4 0.1

Skilled (Levels 3-5) 125 627 19.9 723 5 0.2


105 622 16.9 1,250 12 0.3


33 283 11.7 669 20 0.2

Contract (Level 1-2) 0 0 0 0 0 0



Contract ( Level 9-12)

1 28 3.60 13 13 0.002

Periodical Remuneration

0 5 0 0 0 0

Total 333 2044 16.3 2,945 9 0.7

TABLE 7.3 – Performance Rewards by critical occupations, 1 April 2012 to 31 March 2013

Critical Occupations


Number of


% of total within occupation Total Cost (R‟000) Average cost per employee

Engineer 0 9 0 0 0 Architect 0 9 0 0 0 Quant Surv 0 7 0 0 0 Project Managers

0 22 0 0 0

Total

0 47 0 0 0

TABLE 7.4 – Performance related rewards (cash bonus), by salary band, for Senior Management Service

Salary Band

Beneficiary Profile

Number of


% of total within band

Total Cost (R’000)

% of SMS Wage Bill

Total cost as a % of the total personnel

expenditure

Personnel cost SMS(R‟000)

Band A 0 25 0 0 0 0 0 Band B 0 2 0 0 0 0 0 Band C 0 3 0 0 0 0 0 Total 0 30 0 0 0 0 0


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4.8 Foreign Workers

The tables below summarise the employment of foreign nationals in the department in terms of salary bands and by major occupation. The tables also summarise changes in the total number of foreign workers in each salary band and by each major occupation.

TABLE 8.1 – Foreign Workers, 1 April 2012 to 31 March 2013, by salary band

Salary Band

1 April 2012 31 March 2013 Change

Number % of total

Number

% of total Number % change

Total Employment @Beginning

of Period

Total Employment

at End of period

Total Change in

Employment


0 0 0 0 0 0 0 0 0

Skilled (Levels 3-5) 0 0 0 0 0 0 0 0 0 Highly skilled production (Levels 6-8)

0 0 0 0 0 0 0 0 0


3

75

4

57

1

33.3

4

7

3


0

0

0

0

0

0

4

7

3


1

25

1

14.3

0

0

4

7

3


0

0

2

28.6

2

66.7

4

7

3

Total 4

100

7

100

3

100

4

7

3

TABLE 8.2 – Foreign Worker, 1 April 2012 to 31 March 2013, by major occupation

Major Occupation 1 April 2012 31 March 2013 Change

Number % of total Number % of total Number % change Total Total Total

Professionals and managers

4 100 7 100 3 100 4 7 3

Technicians and associated professionals

0 0 0 0 0 0 0 0 0

Total 7 100 7 100 3 100 4 7 3


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4.9 Leave utilization for the period 1 January 2012 to 31 March 2013

The Public Service Commission identified the need for careful monitoring of sick leave within the public service. The following tables provide an indication of the use of sick leave (Table 9.1) and disability leave (Table 9.2). In both cases, the estimated cost of the leave is also provided.

TABLE 9.1 – Sick leave, 1 January 2012 to 31 December 2012

Salary Band

Total days

% days with

medical certificat

ion

Number of Employees using sick

leave

% of total employees using sick

leave

Average days per employee

Estimated Cost

(R’000)

Total number of employees

using sick leave

Total number of days with

medical certification

Lower skilled (Levels1-2)

1,851

93.6

229

16.4

8

486

1,400

1,732

Skilled (Levels 3-5) 3,564 83.6 466 33.3 8 1,180 1,400 2,980

Highly Skilled production( levels 6-8)

3,380

82.4

447

31.9

8

2,164

1,400

2,784

Highly Skilled Production (levels 9-12)

1,133

82.4

184

13.1

6

1,343

1,400

934

Senior management (levels 13-16)

139

84.2

21

1.5

7

405

1,400

117

Contract (Levels 1-2) 0

0

0

0

0

0

0

0


91.8

11

0.8

6

19

1,400

56


73.1

9

0.6

6

31

1,400

38


84

32

2.3

6

228

1,400

163


8

100

1

0.1

8

22

1,400

8

Total 10,382 84.9 1,400 100 7 5,878 1,400 8,812

TABLE 9.2 – Disability leave (temporary and permanent), 1 January 2012 to 31 December 2012

Salary Band Total days taken

% days with

medical certificati

on

Number of Employees

using disability

leave

% of total employees

using disability

leave

Average days per employee

Estimated Cost

(R’000)

Total Total


586

100

41 21

14 155 586

195

Skilled (Levels 3-5) 1,340

100

61 31.3

22 406 1,340

195


1,109

100

63 35.4

16 694 1,109

195


507

100

18 902

28 964 507

195

Snr management (Levels 13-16)

6

100

2 1

3 17 6

195

Total 3,548

100

185

100

83 2,236 3,548

151


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Table 9.3 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 9.3 – Annual Leave, 1 January 2012 to 31 December 2012

Salary Bands Total days taken Average per

employee

Number of Employees who

took leave

Lower skilled (Levels 1-2) 9508 24 389

Skilled Levels 3-5) 16553.25 23 713

Highly skilled production (Levels 6-8) 13516 22 614

Highly skilled supervision(Levels 9-12) 4945.26 20 248

Senior management (Levels 13-16) 715 19 37

Contract ( Levels 1-2) 0 0 0




663

15

44


36

18

2

Total 46289.51 22 2085

TABLE 9.4 – Capped leave, 1 January 2012 to 31 December 2012

Salary Bands Total days of capped leave

taken

Average number of days taken

per employee

Average capped leave per employee

as at 30/09/2011

Number of employees who

took Capped leave

Total number of capped

leaved available as at

31/12/2012

Number of employees as at 31/12/2012


26

3

74

8

21,492

292

Skilled Levels 3-5)

222

20

94

11

45,075

482


75

5

108

14

36,102

333

Highly skilled supervision(Levels 9-12)

61

12

83

5

6,006

72

Total

384

10

92

38

108, 675

1,179


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TABLE 9.5 – Leave payouts for the period 1 April 2012 to 31 March 2013

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

REASON Total Amount

(R’000) Number of Employees

Average payment per employee

Leave payout for 2012/13 due to non-utilisation of leave for the previous cycle

0

0

0

Capped leave payouts on termination of service for 2012/13

1,026

94

10,915

Current leave payout on termination of service for 2012/13

47

35

1,343

Total 1,073 129 12,258

4.10 HIV/AIDS & Health Promotion Programmes

TABLE 10.1 – Steps taken to reduce the risk of occupational exposure

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

Key steps taken to reduce the risk

Staff between salary levels 1-7 involved in the line function i.e. workshop staff, grass cutters, cleaners, due to accidents which may occur on site. All professional and technical staff that interacts with this vulnerable group is at risk for exposure to TB and also to other occupational hazards.

Safety training has been conducted for staff. Ensuring that Regions have dedicated Safety Officers to ensure safe wok practices and procedures. Provision of protective clothing first aid kits. Provision of Safety Equipment to all professional staff and undertake safety training for professionals which has commenced and will continue.


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TABLE 10.2 – Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and provide

TABLE 10.2-Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and provide

Question Yes No Details, if yes

1. Has the department designated a member of the SMS to

implement the provisions contained in Part VI E of Chapter 1 of

the Public Service Regulations, 2001? If so, provide her/his name

and position.

√ Mrs BJN Makhaye: HRM Senior Manager

2. Does the department have a dedicated unit or has it designated

specific staff members to promote the health and well-being of

your employees? If so, indicate the number of employees who are

involved in this task and the annual budget that is available for

this purpose.

√ 3 staff members within the EHW Division in Head Office, including one Practitioner in each region. Financial restrictions, no budget allocated.

3. Has the department introduced an Employee Health and

Wellness or Health Promotion Programme for your

employees? If so, indicate the key elements/services of this

Programme.

√ Employee Wellness Management (iro all chronic illnesses)

HIV/AIDS and TB Management

Health & Productivity Management iro bereavement, personal problems, stress, rehabilitation, financial wellness, etc.

SHERQ, e.g. medical surveillance

4. Has the department established (a) committee(s) as

contemplated in Part VI E.5 (e) of Chapter 1 of the Public

Service Regulations, 2001? If so, please provide the

names of the members of the committee and the

stakeholder(s) that they represent.

√ Mrs BJN Makhaye (Chairperson) Human Resources Manager Ms L Mtolo: DM: EHW; Mr Nxumalo (Act Dep. Man: Labour Relations; Organised Labour; Regional Representatives (from 4 regions- Assist Man: HR i.e. Midland Region Rep,

Mr M Makhonza, Ms J Nel, Mr S Mncwango, Mr Mgobozi Dep. Man: HRSS; Mr Atwaru Dep. Man: HREP.; Ms N Khumalo EHW Practitioner (Head Office) and EHW Practitioners from the Regions

5. Has the department reviewed its employment policies and

practices to ensure that these do not unfairly discriminate against

employees on the basis of their HIV status? If so, list the

employment policies/practices.

√ EHWP, HIV and AIDS Workplace Policy, Recruitment Policy.


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4.11 Labour Relations

The following collective agreements were entered into with trade unions within the department.

TABLE 11.1 – Collective agreements, 1 April 2012 to 31 March 2013

Subject Matter Date

Dispute Resolution Proceeding 0

Roles of Conduct of Proceeding before PSCBC

0

Long Service Reward 0

Establishment of Provincial Chambers of PSCBC

0

Agency Shop Agreement 0

Appointment of a period of arbitrators and conciliators

0

If there were no agreements, then use the following table

Total collective agreements NIL

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.

√ Use of reference numbers for each employee instead of the name.

Use of these numbers on all documentation and even on itineraries for use of vehicles to take employees to Doctors.

Awareness training for all staff members to break the stigma and consequent discrimination.

7. Does the department encourage its employees to undergo

Voluntary Counselling and Testing? If so, list the results that you have

you achieved.

√ Employees have eagerly come forward to enrol on the EHWP for medical assistance with positive results also encourage level 1-5 employees to become members of GEMS to access free Aid for AIDS- HIV/AIDS management programme. Sapphire Membership.

EHW component coordinates Departmental HCT campaigns on quarterly basis in partnership with GEMS.


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

TABLE 11.2 – Misconduct and disciplinary hearings finalised, 1 April 2012 to 31 March 2013

Outcomes of disciplinary hearings Number % of total

Final written warning 9 45

No outcome 0 0

Suspended without pay 3 15

Written warning 0 0

Verbal warning 0 0

Correctional counseling 0 0

Fine 0 0

Demotion 0 0

Dismissal 0 0

Not guilty 2 10

Case withdrawn 6 30

Total 20 100

If there were no disciplinary hearings, then use the following table

Disciplinary hearings – 2012/13

N/a

TABLE 11.3 – Types of misconduct addressed at disciplinary hearings

Type of misconduct Number % of total

Negligence 3 33.3

Intimidating Threats 0 0

Unsatisfactory work performance

0 0

Coming to work under influence of alcohol

0 0

Use of abusive language

0 0

Abuse of State equipment viz. Telephone

3 33.3

Failure to adhere to official hours

0 0

Failure to comply with leave procedure

0 0

Failure to comply with given instructions

0 0

Failure to attend a counseling session

0 0

Unauthorized absence 1 11.1

Theft 0 0

Social grant 2 22.2

Total 9 100


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TABLE 11.4 – Grievances lodged for the period 1 April 2012 to 31 March 2013

Number % of Total

Number of grievances resolved 94 79

Number of grievances not resolved 25 21

Total 119 100

TABLE 11.5 – Disputes lodged with Councils for the period 1 April 2012 to 31 March 2013

Number % of Total

Number of disputes upheld 0 0

Number of disputes dismissed 1 25

Disputes pending 3 75

Total 4 100

TABLE 11.6 – Strike actions for the period 1 April 2012 to 31 March 2013

Total number of person working days lost 0

Total cost (R‟000) of working days lost 0

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

TABLE 11.7 – Precautionary suspensions – 01/04/ 2012 to 31/03/2013

Number of people suspended 0

Number of people whose suspension exceeded 30 days 0

Average number of days suspended 0

Cost (R‟000) of suspensions 0


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4.12 Skills development:

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

12.1 – Training needs identified 1 April 2012 to 31 March 2013

Occupational Categories

Gender

Number of employees as at 1 April

2012

Training needs identified at start of reporting period

Learnerships

Skills Programmes &

other short courses

Other forms of training

Total

Legisl, snr offs and managers

Female 6 0 20 0 20

Male 24 0 46 14 60

Professionals Female 45 0 4 0 4

Male 64 14 13 27

Technicians & assoc prof.

Female 186 0 10 0 10

Male 124 43 11 54

Clerks Female 314 0 176 15 191

Male 131 0 123 12 135

Service & sales workers

Female 29 0 5 0 5

Male 166 0 12 0 12

Skilled agric & fish workers

Female 0 0 0 0 0

Male 0 0 0 0 0

Craft and Related Trade Workers

Female 50 0 0 0 0

Male 240 0 0 0 0

Plant & mach oper & assem

Female 1 0 0 0 0

Male 69 0 13 3 16

Elementary occupations

Female 180 0 45 8 53

Male 434 0 87 32 119

Sub Total Female 811 0 260 23 283

Male 1252 0 338 85 423

Total 2063 0 598 108 706


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12.2 – Training provided 1 April 2012 to 31 March 2013

Occupational Categories

Gender

Number of employees as at 1 April

2012

Training provided within the reporting period

Learnerships

Skills Programmes &

other short courses

Other forms of training

Total


Female 6 0 82 34 116

Male 24 0 50 36 86

Professionals Female 45 0 8 10 18

Male 64 0 20 10 30

Technicians and associate professionals

Female 186 0 21 19 40

Male 124 0 18 51 69

Clerks Female 314 0 169 75 244

Male 131 0 118 32 150

Service and sales workers

Female 29 0 0 0 0

Male 166 0 0 0 0

Community and personal service workers

Female 0 0 1 2 3

Male 0 3 2 1 6

Craft and related trades workers

Female 50 0 0 0 0

Male 240 0 0 0 0


Female 1 0 0 0 0

Male 69 1 0 2 3

Elementary occupations

Female 180 0 3 0 3

Male 434 9 1 0 10

Sub Total Female 811 0 284 140 424

Male 1252 13 209 132 354

Total 2063 13 493 272 778

4.13 Injury on duty

The following tables provide basic information on injury on duty.

TABLE 13.1 – Injury on duty, 1 April 2012 to 31 March 2013

Nature of injury on duty Number % of total Required basic medical attention only 5 100

Temporary Total Disablement 0 0

Permanent Disablement 0 0

Fatal 0 0

Total 5 100


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4.14 Utilization of Consultants 1 April 2012 to 31 March 2013

Table 14.1 – Report on consultant appointments using appropriated funds

Project Title Total number of consultants that worked on the project

Duration: Work days

Contract value in Rand

DEVELOPMENT OF A MECHANICAL PERIOD CONTRACT

1 24 MONTHS R 90,000

DEVELOPMENT OF ELECTRICAL PERIOD CONTRACT

1 24 MONTHS R 4,181,000

DEVELOPMENT OF PLUMBING PERIOD CONTRACT

1 24 MONTHS R 288,000

ADMINISTRATION & SUPPORT STAFF TO THE DEPARTMENT 4 12 MONTHS

R 6,166,000

Total number of projects Total individual consultants Total duration:

Work days Total contract value in Rand

4 7 R 10,725,000

Table 14.2 – Analysis of consultant appointments using appropriated

funds, in terms of Historically Disadvantaged Individuals (HDIs)

Project Title Percentage

ownership by HDI groups

Percentage management by

HDI groups

Number of Consultants from HDI groups that

work on the project

BBBEE Contributor

DEVELOP EMERGING CONSULTANTS DEVELOPMENT PROGRAMME.

100% 100% Level 1

APPOINTMENT OF CONSULTANT FOR THE DEVELOPMENT OF STANDARD TENDER DOCUMENT

Level 2

ONE YEAR MAINTENANCE CONTRACT OF ACCESS CONTROL AND CCTV

DEVELOPMENT OF A MECHANICAL PERIOD CONTRACT

0% 0% 0

DEVELOPMENT OF ELECTRICAL PERIOD CONTRACT

50% 50% 100% Level 1

DEVELOPMENT OF PLUMBING PERIOD CONTRACT

International 20% 50% Level 4

ASSISTANCE WITH ENVELOPE MANAGEMENT APPROACH PLANNING AND IMPLEMENTATION

0 0 0

191 - PHASE 2 ALTERATIONS TO EXISTING BLDG & GARAGING


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Table 14.3 – Report on consultant appointments using Donor funds

Project Title Total Number of consultants that worked on the project

Duration: Work days

Donor and Contract value in Rand

Total number of projects

Total individual consultants Total duration:

Work days

Total contract value in Rand

Table 14.4 – Analysis of consultant appointments using Donor funds,

in terms of Historically Disadvantaged Individuals (HDIs)

Project Title Percentage ownership by HDI groups

Percentage management by HDI groups

Number of Consultants from HDI groups that work on the project

NONE

NONE


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5. OTHER INFORMATION

5.1 Acronyms

ABET - Adult Basic Education & Training

CETA - Construction Education and Training Authority

COGTA - Department of Cooperative Governance and Traditional Affairs

DoA - Department of Agriculture

DoE - Department of Education

DOPW - Department of Public Works

EPWP - Expanded Public Works Programme

FRPC - Fixed Rate Period Contract

GIAMA - Government Immovable Asset Management Act

HOD - Head of Department

IDIP - Infrastructure Delivery Improvement Plan

IPIP - Infrastructure Programme Implementation Plan

IPMP - Infrastructure Programme Management Plan

MEC - Member of Executive Council

MTSF - Medium Term Strategic Framework

PFMA - Public Finance Management Act

SLA - Service level Agreement


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5.2 List of contact details

OFFICE OF THE MEC


Mr R R Pillay

Private Bag X54336

DURBAN

4001

Tel no: 031 261 8997

Fax no: 031 261 8157

e-mail: [email protected]

HEAD OF THE MINISTRY

Mr. Lindani Mzotho

Private Bag X54336

DURBAN

4001

Tel no: 031 261 8997

Fax no: 031 261 8157

e-mail: [email protected]

PA to MEC

Ms Jurie Thaver

Private Bag X54336

DURBAN

4001

Tel no: 031 261 8997

Fax no: 031 261 8157

e-mail:[email protected]

OFFICE OF THE HEAD OF DEPARTMENT

Head: Public Works

Mr A. Govender

Private Bag X9041

PIETERMARITZBURG

3200

Tel: (033) 355-5562

Fax: (033) 355-5683

E-mail: [email protected]




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OFFICE OF THE CHIEF FINANCIAL OFFICER

Chief Financial Officer

Mr J. Redfearn

Private Bag X9041

PIETERMARITZBURG

3200

Tel: (033) 355-5625

Fax: (033) 355-5678


CHIEF DIRECTORATE: CORPORATE SERVICES

General Manager: Corporate Services

Mr P. W. Duma

Private Bag X9142

PIETERMARITZBURG

3200

Tel: (033) 260-4202

Fax: (033) 260-4190


CHIEF DIRECTORATE: OPERATIONS

General Manager: Operations

Mr T.A. Mdadane

Private Bag X9041

PIETERMARITZBURG

3200

Tel: (033) 355-5401

Fax: (033) 355-5509


CHIEF DIRECTORATE: PROPERTY MANAGEMENT

General Manager:

Mrs S. L. Linda

Private Bag X9041

PIETERMARITZBURG

3200

Tel: (033) 355-5533

Fax: (033) 355-5508




Documents

DEPARTMENT OF PUBLIC WORKS - Provincial Government · The Construction Industry Development Board Act No. 38 of 2000; ... Leanerships and internship programmes accounted for 33 appointments