NORTHERN CAPE ANNUAL REPORT 2013 / 2014 - South Africa · 2015-06-26 · ANNUAL REPORT 2013 / 2014 transport, safety & liaison Department: Transport, Safety & Liaison NORTHERN CAPE

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2013 / 2014

ANNUAL REPORT

NORTHERN CAPE PROVINCE

VOTE 3

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TABLE OF CONTENTS

PART A: GENERAL INFORMATION ............................................................................ 5

3.1. Vision................................................................................................................... 7

3.2. Mission ................................................................................................................ 7

3.3. Values ................................................................................................................. 7

3.4. Strategic outcome orientated goals ..................................................................... 8

PART B: PERFORMANCE INFORMATION ................................................................ 17

2.4 Key policy developments and legislative changes ............................................ 20

4.1. Programme 1 – 5 .............................................................................................. 22

5.1. Departmental receipts ....................................................................................... 50

5.2. Programme Expenditure ................................................................................... 51

5.3. Transfer payments, excluding public entities..................................................... 51

5.4. Public Entities .................................................................................................... 51

5.5. Conditional grants and earmarked funds paid................................................... 52

5.6. Conditional grants and earmarked funds received ............................................ 52

5.7. Donor Funds – No donor funds received for the period under review. .............. 52

5.8. Capital investment, maintenance and asset management plan ........................ 52

PART C: GOVERNANCE ............................................................................................ 53

PART D: HUMAN RESOURCE MANAGEMENT......................................................... 55

3.1. Personnel related expenditure .......................................................................... 56

3.2 Employment and vacancies ............................................................................. 58

3.3 Job Evaluation ................................................................................................... 61

3.9 HIV/AIDS & Health Promotion Programmes ..................................................... 77

3.10 Labour Relations ............................................................................................... 79

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3.11 Skills development ............................................................................................ 81 3.12 Injury on duty ..................................................................................................... 83

3.13 Utilisation of Consultants ................................................................................... 83

PART E: FINANCIAL INFORMATION ......................................................................... 85

1. Audit Committee Report .................................................................................... 86

2. Report of the Accounting Officer ....................................................................... 90 3. Report of the Auditor-General…………………………………………………… 100 4. Annual Financial Statements............................................................................. 105

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PART A: GENERAL INFORMATION

1. DEPARTMENT’S GENERAL INFORMATION

PHYSICAL ADDRESS: Southey Chambers

Southey Street

KIMBERLEY

8300

POSTAL ADDRESS: P.O. Box 1368

KIMBERLEY

8300

TELEPHONE NUMBER/S: (053) 839 1700

FAX NUMBER: (053) 839 1773

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS : None

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2. LIST OF ABBREVIATIONS / ACRONYMS

TERM DEFINITION OLB Operating License Board PRE Provincial Regulatory Entity MTSF Medium Term Strategic Framework AARTO Administration of Road Traffic Offences Act No. 46 of

1998 MTEF Medium Term Expenditure Framework DLTC Driver License Testing Centre EXCO Executive Council eNaTIS Electronic National Traffic Information System RTMC Road Traffic Management Corporation DTSL Department of Transport, Safety and Liaison SAPS South African Police Service PCCF Provincial Crime Combating Forum SCCF Station Crime Combating Forum EPWP Expanded Public Works Programme IPTN Integrated Public Transport Networks PLTF Provincial Land Transport Framework TCS Transport Coordinating Structures SANWIT South African Network for Women in Transport NLTA National Land Transport Act VTS Vehicle Testing Station RAF Road Accident Fund PrDP Professional Driving Permit PPP Public Private Partnership PTOG Public Transport Operators Grant AGSA Auditor General of South Africa CFO Chief Financial Officer MEC Member of Executive Council HOD Head of Department PFMA Public Finance Management Act TR Treasury Regulations SCM Supply Chain Management SITA State Information Technology Agency SDIP Service Delivery Improvement Plan SCP&CPR Social Crime Prevention and Community Police Relations OTP Office of the Premier PSETA Public Sector Education Training Authority PSC Public Service Commission MoA Memorandum of Agreement IA Internal Audit MPAT Management Performance Assessment Tool

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3. STRATEGIC OVERVIEW 3.1. Vision

A leader in the creation and coordination of safe, secure and sustainable transport and

policing systems for a crime-free Northern Cape Province. 3.2. Mission

Enable a safe and secure environment and mobility for the community of the Northern Cape

through:

• Good Corporate Governance, Management, Administration & Support

• Establishing and supporting community safety partnerships

• Monitoring and oversight of the police

• Facilitating and coordinating social crime prevention and road safety programmes

• Educating, enforcing and administering road traffic legislation

• Liaison with all relevant stakeholders, role-players and clients pertaining policing, safety

and security

• Provisioning of an integrated transport system and operation for goods and people 3.3. Values

• Service Excellence through Batho Pele;

• Mutual Respect and Trust;

• Integration of effort - between agencies, local authorities, Government Departments and

other stakeholders;

• Teamwork – working together and building a spirit of co-operation;

• Knowledge Application - courage to learn, change and innovate;

• Professionalism, honesty and integrity;

• Shared vision, communication, consultation and sharing of ideas and information,

commitment and teamwork;

• Accountability, transparency, compliance and meeting of deadlines;

• Pro-active thinking and approach;

• Motivation as an integral function of all managers, consistently giving recognition,

acknowledgement and feedback;

• Unity in diversity, representivity and equity;

• Culture of tolerance, mutual respect, trust, honesty, loyalty, patriotism, positive attitude;

• Adherence to the Public Service Code of Conduct and self-discipline.

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3.4. Strategic outcome orientated goals Strategic Goal 1: Support and ensure the smooth functioning of the Department;

Strategic Goal 2: Transparent and accountable law enforcement agencies in the Northern

Cape by 2014;

Strategic Goal 3: A Safe and Secure Northern Cape Province;

Strategic Goal 4: To enable and ensure effective, efficient and safe mobility in the Northern

Cape Province;

Strategic Goal 5: To enhance the overall quality of road traffic service provision;

Strategic Goal 6: To co-ordinate and implement road traffic safety, communication and

awareness campaign focus on all the categories of road users in the Northern Cape by

2014;

Strategic Goal 7: To manage and co-ordinate vehicle registration and licence, roadworthy

and testing and licensing of drivers and authorise law administration services in the

Province. 4. LEGISLATIVE AND OTHER MANDATES

The core objectives of the department are based on the following constitutional and other

legislative mandates, functional mandates and the service delivery improvement

programme. Constitutional and Legislative mandates

The authority and function of the Department of Transport, Safety & Liaison is entrenched in

our Constitution and defined in national legislation. Schedule 4 of the Constitution provides for Public Transport and Road Traffic Regulation to

be amongst the functional areas of concurrent National and Provincial legislative

competency, whilst Provincial Traffic is an area of exclusive provincial competence as

provided in Schedule 5.

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We also give effect to powers assigned to the Department by the following national legislation:

National Land Transport Act No. 5 of 2009;

National Road Traffic Act No. 93 of 1996;

Administrative Adjudication of Road Traffic Offences Act No. 46 of 1998.

Chapter 11 of the Constitution of the Republic of South Africa, 1996 defines the role of Provincial Government in policing as follows:

Section 206(2) provides that the National Policing Policy may make provision for

different policies in respect of different Provinces after taking into account the policing

needs and priorities of these provinces;

Section 206(3) determines that each province is entitled to:

a. Monitor police conduct;

b. Oversee the effectiveness and efficiency of the police service including receiving

reports on the police service;

c. Promote good relations between the police and the community;

d. Assess the effectiveness of visible policing; and

e. Liaise with the Cabinet member responsible for policing with respect to crime and

policing in the Province.

Section 206(4) further states that a provincial executive is responsible for policing

functions vested in it by this chapter, assigned to it in terms of National Legislation and

allocated to it in the National Policing Policy. The Department did not draft or introduce any new or amended legislation to the Executive

Council or Legislature during the reporting period.

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5. O R G A N I S A T I O N A L S T R U C T U R E

6. ENTITIES REPORTING TO THE MEC There are no entities reporting to the MEC

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7. FOREWORD BY THE MEMBER OF THE EXECUTIVE COUNCIL

The end of March 2013 financial year signalled yet another term end

since the new administration took over in May 2009. The ANC led

government has indeed made significant strides in the past 20 years of

our democracy and we have a good story to tell with regard to

achievements made in the fight against crime and corruption and in

preventing darnage on our roads through enforcing the UN Decade of

Action for Road Safety 2011 – 2020 campaign in the Northern Cape

Province. As a nation, we constantly have to remind ourselves that since the dawn of democracy, we

have embarked on an important journey of defining what human security mean to the

masses of our people. This new meaning had to give impetus to the safety of individuals and

communities rather than on the security of the state as it has been in the past, and most

importantly, this voyage has been an integrated process, which is people centred and people

driven since 1994. As with all the services we deliver, the needs and aspirations of our people must shape the

form that their security takes. Our Department and the communities as well as our

stakeholders have constantly been strategizing on how to respond to the changing crime

patterns in our province through our community outreach programmes. We had always

asked ourselves the question as to why there is a pervasive and consistent level of crime (s),

especially violent crime in our communities, at a time when our society should cohering into

a maturing and stable democracy. As part of our response and quest to make the Northern Cape a safe and secure province to

live in, as a Department we had been hard at work ensuring that we remain in the forefront

for the safety of our communities throughout our Province. Hence, the launching of the Provincial Crime Prevention Strategy (PCPS), which among

others aims to:

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� Holistically guide the prevention of crime in the Province by providing an overarching

strategic framework to address crime.

� Integrate and coordinate all activities from government and community structures in

the prevention of crime.

� Mobilise government and community resources in the fight against crime.

The PCPS serves as a driving tool in dealing with the scourge of crime in the province and

remains the best strategy of bringing into practice the philosophy of policing - community

partnership in combating crime in our province driven by extensive research and

consultation with many stakeholders in the safety and security environment towardsthe

development of a response to the high levels of crime and more specifically violent crime in

the province. Although our province continue to witness a number of horrific incidents and brutal acts of

rape, assaults and murder in recent years, an increasein some of these crimes directly

impact on material and personal security of the public and had an adverse effect on the

quality of life. Thus, in moving forward we all have a responsibility to ensure that the strategy is practically

implementable towards addressing our electoral mandate, which clearly states that; “All

People are and Feel Safe”. Hence the department is mainly focussing on the following three

key outputs, under Outcome 3, which is crime prevention based on proactive activities and

interventions, dealing with perceptions on crime and improving road safety. We want to make a clarion call to our communities, to take a bold stance against crime in

their homes, streets, neighbourhoods as part of advancing our cause in the integration of

communities’ efforts and stakeholders towards the eradication of crime in our province. We will also, continue playing an oversight role in the South African Police Service, increase

safety awareness to the public through the implementation of our departmental projects and

programmes as a measure of strengthening relations with communities and stakeholders in

the fight against crime and to ensure that public transport operates within acceptable cost,

based on quality and safe transport towards the development of our provincial economy. I am very pleased that the road safety education campaign was rolled out in all districts of

the province carrying our message of road safety towards a change in the road user’s

behaviours and attitudes.

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Together with all stakeholders we are ensuring a safer environment for all citizens in the

Province, both on our roads and in the communities

Yes, together we are moving South Africa forward.

HONOURABLE MEC M BARTLETT MEMBER OF THE EXECUTIVE COUNCIL FOR TRANSPORT, SAFETY AND LIAISON DATE: 31 MAY 2014

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8. OVERVIEW BY THE ACCOUNTING OFFICER It is indeed our pleasure to present the Annual Report of the

Departmental of Transport, Safety and Liaison for the 2013/2014

financial year. This report reflects the achievements, while also

highlighting the challenges during the said period. The department has raised to the occasion and responded well to

the service delivery expectations and needs of our communities.

Notwithstanding the challenges of a small number of personnel and

limited resources, services to our communities received the highest

attention it deserves. The department spent over 99% of its allo-

cated budget of R314.7 million, and a roll-over has been applied for the amount of

R4, 429 million, which had been committed. The department has made good strides in enhancing and promoting Small, Medium and

Macro Enterprises (SMME’S), by having improved on the settlement of all invoices within a

period of 10 days from date of receipt of invoices. This has been made possible through the

strengthening of monitoring systems, as well as the supporting role played by Provincial

Treasury. The department of Transport, Safety and Liaison has continued to contribute positively to the

provincial fiscus and had collected an amount of R155.788 million for the 2013/2014

financial year, this amount exceeds the budget amount by more than R4million. In achieving government’s initiative regarding the Expanded Public Works Programme, job

creation and skills development, the department has appointed 30 EPWP workers for the

2013/2014 financial year through the equitable share allocation. The management of service delivery complaints against SAPS improved during the previous

financial year, although matters of, inter-alia, response time and shortage of resource still

remains a big challenge, and as such , SAPS had been engaged to give attention to this

matters. .

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The department has conducted assessments to oversee the functionality of Community

Police Forums in the Province. Community Police Forums were assisted and guided

through induction sessions to understand their roles and responsibilities Provision of affordable and accessible transport services to communities were ensured

through the Public Transport Operations Grant. Considering the fact that our province constitutes over 35% of the landscape of our country

the vastness of our Province remains an arduous task for travelling. In addressing this

particular challenge, the Northern Cape Province launched an Intra-Provincial Air Service

pilot project. This service operates between Kimberley, Upington and Springbok. The intra-flight service has the potential to stimulate economic growth and fast-track effective

and efficient service delivery, by facilitating easy and safe travel options for business/private

sector entrepreneurs and for Government. This type of service is indeed of a special kind in

the country. The Department has a very good working relationship with the with the Northern Cape

Provincial Taxi Council, an affiliate of the South African National Taxi Council (SANTACO)

in ensuring the empowerment of taxi operators and drivers in the province. This relationship

had ensured, as well as maintained, peace and stability in the industry and assisted to

resolve grievances from operators, drivers and commuters. The Key Transport Infrastructure Projects continues to remain on the developmental agenda

A lot of progress had been made by the department in conjunction with all roll players under

the guardianship of the Provincial Steering Committee. The development of economic

activities has been stimulated in the areas of Port-Nolloth and De Aar respectively, by

partners such as Department of Public Enterprise, Transnet, Department of Agriculture and

Fisheries, Emthanjeni Municipality, National Transport Ports Authority, and others. The Project Management Unit has completed the Feasibility Study which provides for a

strong investment case and for job creation opportunities and economic development

activities.

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Lastly in terms of road safety ,community members, schools and churches were mobilise

behind the United Nations Declarations of the Decade of Road Safety 2011-2020” Make our

roads Safe” campaign.

The highlight of this intervention was the Provincial Youth Debate hosted in Upington, which

consisted of schools from all five(5) districts in the provinces. Five (5) members form the

debate teams were enrolled by the Department to participate at the National Road Safety

Debate in Cape Town, where they achieved second place nationally.

Steven Jonkers Accounting Officer Date: 31 May 2014

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PART B: PERFORMANCE INFORMATION 1. STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION

FOR THE YEAR ENDED 31 MARCH 2014 The Accounting Officer is responsible for the preparation of the department’s

performance information and for the judgements made in this information.

The Accounting Officer is responsible for establishing, and implementing a system of

internal control designed to provide reasonable assurance as to the integrity and

reliability of performance information.

In my opinion, the performance information fairly reflects the performance information of

the department for the financial year ended 31 March 2014.


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AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES

The AGSA currently performs the necessary audit procedures on the performance

information to provide reasonable assurance in the form of an audit conclusion. The

audit conclusion on the performance against predetermined objectives is included in the

report to management, with material findings being reported under the Predetermined

Objectives heading in the Report on other legal and regulatory requirements section of

the auditor’s report.

Refer to page 87 of the Report of the Auditor General, published as Part E: Financial

Information.

2. OVERVIEW OF DEPARTMENTAL PERFORMANCE

2.1 Service Delivery Environment

The envisaged national roll out of the AARTO Act, 1998, the implementation of the

National Land Transport Act, 2009 with specific reference to the introduction of public

transport operator subsidies as well as preparations for the implementation of the

Civilian Secretariat for Police Service Act, 2011 and the Independent Police Investigative

Directorate Act, 2011 will all have a significant impact on the budget of all the line

function Programmes.

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2.2 Service Delivery Improvement Plan

The department has completed a service delivery improvement plan. The tables

below highlight the service delivery plan and the achievements to date.

Main services provided and standards

Main services Actual

customers Potential customers

Standard of service

Actual achievement against standards

Provision of an integrated transport system, coordination and capacitation of municipalities in relation to transport function

District and local municipalities


Satisfactory All 5 district municipalities reached and capacitated with the establishment of District Technical Committees and Integrated Transport Plan (ITP).

Handling of complaints of police inefficiency

Community members

Individual Community members and Organisations

Satisfactory 120 Complaints handled. Breakdown: Resolved/finalized:71 Still pending: 49

Consultation arrangements with customers

Type of arrangement Actual Customers Potential Customers

Actual achievements

Schedule meetings with municipalities. Participation in IGR forums.



5 District municipalities

One-on-one consultation to complainants providing regular feedback

Community members Individual community member and organisations

71 finalized and resolved

Service delivery access strategy

Access Strategy Actual achievements Rural Transport Strategy:

Provision of bus subsidies services to ensure accessibility to rural communities.

Implementation of Shova Kalula Bicycle Project.

Subsidized 1 646 484km in the Northern Cape Subsidized 21 073 learners with transport to and from school per month. 100 bicycles distributed and 13 Donkey Carts

Complaints mechanism

Complaints Mechanism Actual achievements

Suggestions/ complaints boxes at regional offices In all regional offices

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2.3 Organisational Environment

The expected changes in services of the Department has mainly relate to the migration of

the scholar transport function to the Department, which fully took effect during the 2012/13

financial year.

The Department, as per the call of “2013 – Year of public infrastructure delivery” will

remain biased towards the Outcomes Approach, as articulated under Outcome 6, Output

3, which is to ensure the maintenance and strategic expansion of our road and rail

network, and the operational efficiency, capacity and competitiveness of our seaports.

2.4 Key policy developments and legislative changes

The Department did not draft or introduce any new or amended legislation to the Executive

Council or Legislature during the reporting period. The introduction of new functions and

mandates will have a significant impact on the organisational structure and operations of

the Department. These includes, amongst others the following:

The implementation of the Civilian Secretariat of Police Service Act, No. 2 of 2011;

Migration of Scholar Transport from the Department of Education to the Department, as implemented with effect from 1 April 2012;

The implementation and roll out of the Administration of Road Traffic Offences (AARTO) Act, No. 46 of 1998.

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3. Strategic Outcome Orientated Goals

Strategic Goal Progress

Strategic Goal 1: Support and ensure the smooth functioning of the Department;

The Department, through its Audit Action Plan and its Internal Audit Function is well on course to ensure a clean audit by 2014 and beyond.

Strategic Goal 2: Transparent and accountable law enforcement agencies in the Northern Cape by 2014;

The Civilian Secretariat Directorate has been instrumental in ensuring that police stations are evaluated through the National Monitoring Tool and the analysis of the Performance Chart at key identified police stations throughout the Province.

Strategic Goal 3: A Safe and Secure Northern Cape Province;

In order to work towards this goal, the Department have ensured that we focus on the cleaning and sustenance of public spaces, and projects towards the reduction of violence and abuse of women and children as vulnerable groups within society.

Strategic Goal 4: To enable and ensure effective, efficient and safe mobility in the Northern Cape Province;

The Department has also ensured that rural communities are been assisted and has distributed bicycles to school children in order to overcome their challenges of walking long distances to schools, as well as branded donkey carts, to enhance their visibility on provincial and public roads.

Strategic Goal 5: To enhance the overall quality of road traffic service provision;

The Department took a view to have a much focused approach towards traffic law enforcement.. It mainly relates to traffic road blocks, speed operations and the functioning of our weighbridges, this is couple with focused road safety education programmes

Strategic Goal 6: To co-ordinate and implement road traffic safety, communication and awareness campaign focus on all the categories of road users in the Northern Cape by 2014;

Road safety education programmes have been implemented at schools and railway lines in order to create awareness amongst learners and pedestrians for safe crossing at key intersections in the Province.

Strategic Goal 7: To manage and co- ordinate vehicle registration and licence, roadworthy and testing and licensing of drivers and authorise law administration services in the Province.

The Department, through the e – NATis system ensures the smooth running of DLTC’s and Registering Authorities throughout the Province, which in turn results into the optimal collection of revenue in the Province.

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4. PERFORMANCE INFORMATION PER PROGRAMME

4.1 Programme 1: Administration

Description

To ensure that the department is geared to deliver maximally on its mandate of monitoring

and oversight over SAPS, leading the Northern Cape Provincial Government’s fight

against crime and strengthening traffic law enforcement to ensure safer mobility of all road

users.

Sub – Programmes

Office of the MEC

Office of the HOD

Financial Management

Corporate Services

PERFORMANCE INDICATORS

CORPORATE SERVICES:

Purpose: The programme is responsible for supporting and ensuring the smooth

functioning of the Department Transport, Safety & Liaison. Strategic objective: Ensuring the overall corporate support to a competent workforce.

Performance Information

Total number of 48 officials were trained in the following areas: Security Management Khaedu Management Development Project Management Examiner of Driving Licences and Motor Vehicles Compulsory Public Service Induction

Quarterly monitoring reports has been submitted to PSETA and Mid Term Monitoring Tool to DPSA;

32 jobs opportunities have been created. Security Risk Assessment was conducted in all traffic stations and all regional offices

located in the Province. During the period under review (13) bursaries were awarded to officials as part of employees skills development.

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Service Delivery Objectives and Indicators

Programme: Corporate Services

Performance

Indicator Actual

Achievement

2012/2013

Actual Performance against

Target

Comment on Deviations

Planned Target (2013/14)

Actual Achievement (2013/14)

Deviation from planned target to Actual Achievement for

Sub-programme: Legal Services Number of legal instruments drafted, reviewed and perused e.g. contracts, bills or legislation

34 24 25 1 None

Number of litigation report submitted

No baseline 4 5 1 None

Number of litigation risks report submitted

No baseline 4 3 1 Shortfall due to post being vacant in the first quarter

Sub-programme: Labour Relations

Number of engagements with organized labour to avert industrial action and promote sound labour relations

9 8 9 1 None

Number of misconduct and grievances cases finalized

7 14 15 1 None

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Programme: Corporate Services

Performance

Indicator Actual

Achievement

2012/2013

Actual Performance against

Target

Comment on Deviations


Actual Achievement (2013/14)

Deviation from planned target to Actual Achievement

Sub-programme: Human Resources Development Services

Number of trainings or workshops conducted

.

6 8 10 2 None

Number of bursaries allocated and managed

No baseline 70 13 57 Only 13 Officials applied for bursaries.

Sub-programme: Human Resource Management and Administration

Number of HR Plan’s reviewed , approved and submitted to OTP and DPSA, and implemented

1 1 1 0 None

Number of posts advertised and filled

12 12 13 1 None

Report on the number of employees assessed according to the EPMDS Policy and SMS handbook

4 7 7 0 None

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Sub-programme: Employee Health and Wellness

Number of programmes implemented to address employee health and wellness

6 20 2 18 The post was vacant due to the resignation of incumbent

Number of PILIR implemen-tation reports submitted

4 12 1 11 The post was vacant due to the resignation of the incumbent

Sub-programme: Transport Management and Auxiliary Services

Number of departmental vehicles licenced and maintained

306 140 140 40 None

Number of reports on the management of departmental facilities and weighbridges


Information Technology ,Communication Services Number of programmes rolled out to promote Departmental corporate image

No baseline 12 50 38 Deviation due to service delivery demand and promotion of the Intra- Provincial Airline Service (Phalakane Airways)

Number of approved IT governance framework’s and IT plan submitted

1 2 0 0 Provincial IT plan developed by Office of the Premier has not yet been finalised.

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Sub-programme: Security Management Records Management & Registry Services

Number of reports submitted on applications screened

12 12 12 0 None

Number of applications on security clearance, completed by staff and new employees and forwarded to SSA for processing

117 150 19 131 The responsible person was absent due to attending courses through the year

Number of Reports on all records classified and safeguard according to well- structured records classification and record system keeping

12 12 12 0 None

Number of Reports on inactive documents disposed of

12 12 12 12 None

Number of report submitted on promotion of ethical conducts, anti- fraud and anti- corruption


Number of cases investigated on unethical conduct, fraud and corruption


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Strategy to overcome areas of under performance

The Directorate will vigorously apply the SMART principle in setting key strategic targets

and will cluster targets into operational plans.

Changes to planned targets

Due to budget constrains targets could not be achieved, and further budget cut’s during

the 2013/14 financial year. Targets have been lowered taking into consideration the

external environmental changes.

FINANCIAL MANAGEMENT

Purpose: The Programme is responsible for supporting and ensuring the smooth

functioning of the Department Transport, Safety & Liaison.

Strategic objective: Ensure the effective financial services to all business units in the Department.

Service Delivery Objectives and Indicators:

Programme: Financial Management

Performance

Indicator

Actual

Achievement 2012/13

Actual Performance against Target

Comment on

Deviations

Planned

Target 2013/14

Actual

Achievements

2013/2014

Deviation from target to Actual Achievement for 2013/2014

Number of progress reports on Audit Action Plan

No baseline 4 5 1 This was due to the additional reporting within the Department, over and above the reports to the Audit Committee

Number of financial management policies and procedures formulated

No baseline 9 0 9 Seven (7) policies have been drafted, and are under consideration, at the Policy Committee level, prior to approval

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Performance

Indicator

Actual

Achievement 2012/13


Comment on

Deviations

Planned

Target 2013/14

Actual

Achievements

2013/2014


Number of Interim and annual Financial Statements submitted to Treasury

5 5 0 None

Number of Compliance Reports submitted to Treasury

12 12 0 None

Number of original and adjustment budget submitted to Treasury

2 2 0 None

Number of In- Year Monitoring reports to Treasury

12 12 0 None

Number of revenue reconciliations reports performed

960 960 0 None

Number of reports on the compliance of SLA's

12 12 12 None

Number of Enatis clean-up reports

12 12 0 None

Number of contract management reports

12 0 12 This function resided under Corporate Services

Number of annual procurement plan submitted to Provincial Treasury

1 1 1 None

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Performance

Indicator

Actual

Achievement 2012/13


Comment on

Deviations

Planned

Target 2013/14

Actual

Achievements

2013/2014


Number of SCM committee review reports

5 0 5 SCM committees were established

2012/13, and are still operational

Number of SCM compliance reports

36 36 0 None

Strategy to overcome areas of under performance:

Targets will be aligned to financial resources available, and benchmarked to those of other

provincial departments. If it needs be, Provincial Treasury will be approached to avail

funding, in line with the standards agreed to, within the Province.

The Directorate will vigorously ensure the implementation of the Audit Action Plan in order

to ensure a clean audit. Furthermore, the Department will, on a monthly basis, discuss the

audit action plan. This is because of the need to have a much closer relationship with

Provincial Treasury

All this, will be in quest to eliminate all deviations and non-compliance so that a clean audit

should be achieved within two (2) financial periods.


No changes were made to the targets for the period under review.

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Sub-programmes expenditure

2013/2014

2012/2013

Sub- Programme Name

Final

Appropriation

R’000

Actual

Expenditure

R’000

(Over)/Under Expenditure

R’000

Final

Appropriation

R’000

Actual

Expenditure

R’000

(Over)/

Under Expenditure

R’000

Office of the

MEC

9 010

9 010

-

9 827

9 922

(95)

Office of the

HOD

4 731

4 731

-

3 604

3 604

-

Financial

Management

16 124

16 124

-

14 678

12 092

2 586

Corporate

Services

22 304

22 304

-

20 350

20 350

-

TOTAL

52 169

52 169

-

48 459

45 968

2 491

4.2. Programme 2: Civilian Oversight

Description

This programme is responsible to hold provincial law enforcement agencies accountable with regard to policing activities.

Sub – Programmes

Policy and Research Monitoring and Evaluation Regional Coordination

PERFORMANCE INDICATORS Purpose: To monitor and oversee the performance and conduct of the South African Police Service and law enforcement agencies.

Strategic objective: To have a responsive, accountable law enforcement agency in the province by 2014

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The Programme has conducted evaluation with the National Monitoring Tool to

assess the level of compliance by police stations in the Province

Domestic Violence Act audits were conducted to determine the level of compliance

by police stations in the Province.

Due to a high demand, more community complaints against members of saps were

investigated and feedback provided to complainants.

Research and Surveys

During the financial year under review four (4) community satisfaction surveys were

conducted in Groblershoop, Rosedale Postmasburg and Douglas.

One(1) impact study was done to measure the impact of the department’s work

especially Civilian Oversight and Social Crime Prevention functions. There was a

100% indication from respondents that they would request assistance from the

Department in the future.

Workshops conducted

The functions of the Domestic Violence Act (DVA) audits were transferred from the

Independent Police Investigation Directorate (IPID) to the department. Workshops

and Community Outreach Programmes were conducted in all five (5) regions to

sensitise the police and community of the department’s roles and responsibilities

regarding the DVA.

Conflict resolution

The Civilian Oversight programme intervened in serious conflict between the

Community Police Forum(CPF) ,the Police in Carnarvon to enhance service delivery

in the Cluster

32

Sub-Programme: Civilian Oversight

Performance indicator

Actual Achievement 2012/13

Actual performance

against target

Comments on Deviations

Planned Target 2013/14

Actual Achievement 2013/2014

Deviation from planned target to Actual Achievement for 2013/2014

Number of monitoring reports

47 48 48 48 The target is made up of 24 National Monitoring Tools & 24 Performance Chats which were achieved

Number of Monitoring reports on the implementation of IPID, AG and Parliament recommendations by SAPS

0 2 1 1 The meetings did not convene accordingly, due to unavailability of stakeholders

Number of reports on implementation of special projects

1 2 1 1 This indicator is dependent on the request by national Department of Police’s request to implement special projects. As a result, an investigation on the efficiency of police garages was conducted to assist the Department.

Number of reports on the tracing of wanted persons

8 12 12 0 None

Number of community complaints investigated and completed

109 60 120 60 The target was highly exceeded due to high number of community complaints received and dealt with.

Number of reports on equity analysis of the SAPS with recommendations

4

4

4

0

None

Number of reports on compliance with Standing Order (S.O.)101

37

48

37

11

It is part of the National Monitoring Tool

33

Sub-Programme: Civilian Oversight

Actual performance against target Performance indicator

Actual Achievement

2012/13

Planned Target

2013/2014

Actual Achievement

2013/2014

Deviation from planned target

to Actual Achievement for 2013/2014

Comments on Deviations

Number of reports on compliance with Domestic Violence Act (DVA)

4

2

4

2

None

Number of community surveys conducted

4

4

4

0

None

Number of research on policing conducted (Crime trend analysis)

1

2

2

0

None


The S.O. 101 complaints are no longer going to form part of the National Monitoring Tool

(NMT) in the future.

Recommendations have been made to SAPS to formalize a Disciplinary Management

Committee structure to enable the consistent sitting for the implementation of

recommendations by IPID, AG and Parliament. The recommendation would be followed

up to ensure its implementation.



34


2013/2014

2012/2013

Sub- Programme Name

Final

Appropriation

R’000

Actual

Expenditure

R’000


R’000

Final

Appropriation

R’000

Actual

Expenditure

R’000


R’000

Policy and Research

1 832

1 832

0

1 767

1 767

0

Monitoring and Evaluation

2 345

2 345

0

3 672

3 672

0

Regional Coordination

6 913

6 913

0

6 401

6 401

0

TOTAL

11 090

11 090

0

11 840

11 840

0

4.3. Programme 3: Crime Prevention and Community Police Relations

Description

This programme provides an integrated social crime prevention management framework

to facilitate safer communities

Sub – Programmes

Social Crime Prevention

Community Police Relations

PERFORMANCE INDICATORS

Purpose: This programme provides an integrated social crime prevention management

framework to facilitate safer communities. The Medium Term Strategic Framework

(MTSF) 2009 – 2014 Priority six, “Intensify fight against crime and corruption”, and

Outcome 3, “All people in South Africa are and feel safe” guides and support the mandate

of the directorate.

Strategic objectives

Strategic Objective 1: To provide integrated social crime prevention interventions for safer

communities (Social Crime Prevention)

Strategic Objective 2: To provide for the participation and involvement of communities in

social crime prevention initiatives and to further strengthen relations between communities

and police. (Community Policing)

35


The Provincial Crime Prevention Strategy was successfully launched in Batlharos on 12

September 2013. The Provincial Crime Prevention Strategy was successfully marketed

and the implementation coordinated by the department. The marketing roadshow

included presentations and discussions at the Provincial JOINTS, Provincial Development

Forum, the Provincial Substance Abuse Forum, District IGR Forums, District

Communications Forums, etc. Public Information and Awareness Campaign on anti-alcohol abuse was high on the

agenda of the department. Anti-Alcohol Public Information and Awareness projects were

implemented throughout the Province with highlights in Batlharos, Sunrise, De Aar, Okiep,

Douglas, Galeshewe, Carnarvon, Potsmasburg, etc. Public spaces were sustained in Batlharos, Carolusberg, De Aar, Paballelo, Bergsig,

Greenpoint, Phuthanang and Sunrise. The department managed to claim back these

public spaces and to utilize them for sustainable family bonding and anti-crime sport and

recreational projects. Youth Crime Prevention projects were successfully implemented throughout the Province.

The main projects related to “U-turn against crime” - Ex’s Offenders Drama Play, talk

shows on role of youth in crime prevention and youth crime prevention activists. These

campaigns were mainly focused in high crime areas which included amongst others the

Carnarvon, Postmasburg, Greenpoint, Concordia, Phutanang, Upington, etc. During

Festive Season there were also specific focus on Diamond Park and Sunrise Park – Sport

against crime with games, toys and snacks. Prevention of violence against women programmes were successfully implemented with

the main campaign focusing on Domestic Violence “Enough is Enough”, “change victims

into survivors” and prevention of indoor rape. These projects were implemented in Okiep,

Galeshewe, Magojaneng, Campbell, etc. A Community Police Forums (CPFs) are continuously subjected to assessments and

supported in terms of capacity building sessions and inductions. A community police forum

booklet system was introduced by the Directorate which assist CPF structures operating

from police station level in outlining their roles and responsibilities.

36

The booklet is used continuously and is being distributed during Accountability meetings

and CPF induction sessions. A certification ceremony was held for the thirty five (35)

EPWP learners who all completed the General Security course.

37

Sub-Programme: Social Crime Prevention

Performance Indicator

Actual Achievement

2012/13

Actual performance

against target

Comment on deviations

Planned Target

2013/14

Actual Achievement

2013/14



Anti-alcohol abuse projects initiated, implemented and coordinated

75

1

1

0

The programme received priority attention due to fact that alcohol abuse is one of the main contributing factors towards crime and the department managed to inform and educate communities on the dangers of alcohol abuse in order to reduce incidents of alcohol abuse in the Province.

Sustainable Social Crime Prevention campaigns implemented at adopted public spaces

24

1

1

0

The programme managed to claim back several public spaces and to utilize these public spaces for family bonding and anti-crime sport and recreational projects.

Prevention of violence against Youth and Children projects implemented and coordinated

78

1

1

0

The programme managed to inform and educate communities on the prevention of violence against children and youth. Youth were actively involved in this programme

Prevention of violence against women projects implemented and coordinated

64

1

1

0

The programme managed to inform and educate communities on the prevention of violence against women

Implementation of the Provincial Crime Prevention Strategy

0

1

1

0

The implementation of the Provincial Crime Prevention Strategy was coordinated by the department.

Functional Community Police Forums

34

28

30

2

Target achieved due to the total support given by Regions and relevant stakeholders at station level

38

Sub-Programme: Social Crime Prevention


Actual Achievement

2012/13

Actual performance

against target

Comment on deviations

Planned Target

2013/14

Actual Achievement

2013/14



Community Safety Forums rolled out

2

2

6

4

None


The Programme did not have any significant area of underperformance for the period

under review. Changes to planned targets



2013/2014

2012/2013

Sub- Programme Name

Final Appropriation

R’000

Actual

Expenditure

R’000


R’000

Final Appropriation

R’000

Actual

Expenditure

R’000


R’000

Social Crime Prevention

4 819

4 756

63

3 788

3 788

0

Community Police Relations

1 756

1 756

-

2 163

2 163

0

TOTAL

6 575

6 512

63

5 951

5 951

0

39

4.4. Programme 4: Transport Operations

Description

The purpose of this programme is to plan, regulate and facilitate the provision of public

and freight transport services and infrastructure, through own provincial resources and

through co – operation with national and local authorities, as well as the private sector in

order to enhance the mobility of all communities particularly those currently without or with

limited access. Purpose: To enable and ensure effective, efficient and safe mobility in the Northern Cape

Province.

Strategic objective: To ensure the effective provisioning of intergraded and coordinated

transport system in the Northern Cape Province. Sub – Programmes

Contract Management

Operator Licence and Permits

Training and Development

Operator Safety

Transport Systems

Infrastructure Operations


The roll out of the Intra Provincial Pilot Project between Kimberley, Upington and

Springbok has started and was officially launched;

The Project Management Unit was appointed to assist in securing investments in the

four key transport infrastructure projects.

The second Women in Transport Award ceremony was hosted for Women

entrepreneurs, women in transport law enforcement and women in Transport

Operations and infrastructure.

The Provincial Regulator Entity was appointed to contribute to the empowerment and

upliftment in the transport industry. A total of 30 OLB/PRE sessions were held to assist

the Public Transport Industry.

The youth career recruitment drive and drug awareness session was hosted for 1500

Northern Cape Youths.

40

Sub-programme: Transport Operations


Actual Achievements

2012/13

Actual performance against target

Comments on deviations Planned

Target (2013/14)

Actual

Achievement

2013/14


Provision of an affordable and accessible transport service to communities (Contract Management)

Number of vehicles subsidised

No baseline 800 730 70 PTOG funding was reduced and therefore unable to expand contracts

Number of routes subsidised

No baseline 800 804 4 Adjusted to address commuter needs (Demand Driven)

Number of subsidized kilometres operated per bus

No baseline 1 653 628

1 646 484 7 144 Budget constraints, PTOG funding reduced

Number of passengers per trip operated

No baseline 138

326 188 Commuter demand increased (Demand Driven)

Number of staff for subsidized of bus contract

No baseline 1 876

2 126 250 Due to an increase in commuter/ transport need, more people were employed

Number of subsidized passengers


1 595 182 429 785 Commuter demand increased (Demand Driven)

Number of unsubsidized passengers


1 044 142 380 154 Demand driven

Number of trips subsidised

No baseline 37 956 37 225 None

Number of learner transport contracts managed

210 210 210 0 None

Number of learners subsidized with transport to and from school

23 568 23 993 22 756 1 237 The number fluctuates as some leaners quit school during the year

41

Provision of an integrated transport system, co-ordination and capacitation of municipalities in relation to transport function Number of comprehensive transport planning and systems tools developed

3 2 0 2 Human resource capacity constraints

Number of activities in the co-ordination of transport planning and implementation

3 4 3 1 Human resource capacity constraints

To manage air passenger, infrastructure and freight transport terminals : Infrastructure Operations

Number of interventions to co-ordinate development or maintenance of transport infrastructure


Number of non- motorised / rural transport projects co-ordinated


To promote and improve safety on the public transport system and to enforce compliance with public transport legislation and regulations as well as the liaison and co-ordination of provincial safety and compliance initiatives Number of interventions towards empowerment and development initiatives in the transport industry

1 3 9 6 Demand Driven

Number of Public Transport Conflict Management sessions co-ordinated

6 5 5 0 None



Actual Achievements

2012/13


Comments on deviations Planned

Target (2013/14)

Actual

Achievement

2013/14


42



Actual Achieve- ments 2012/13


Comments on deviations


Actual Achieve-ment 2013/14


Number of road side vehicles check point operations

78 72 89 17 Demand Driven

Number of compliance inspections conducted

14 028 10 800 8 550 2 250 Functions performed on ad hoc basis by Traffic Officers in addition to their ordinary responsibilities

Sub Programme: Operating Licences and Permits

Number of weeks from receipt of request to issuing

No baseline

10 5 5 Budget constraints

Number of OLB/ PRE session facilitate

7 24 30 6 Demand driven


Having realized that some of the Programme’s indicators are either wholly or partly

dependent on third parties, we have amended our Annual Performance Plan for the next

financial year and removed those indicators for incorporation into the Operational Plan.

The Programme’s indicators have also been customized to assist with uniformity. EPWP

volunteers and interns appointed to address human resource capacity constraints.



43


2013/2014

2012/2013

Sub- Programme Name

Final

Appropriation

R’000

Actual

Expenditure

R’000


R’000

Final

Appropriation

R’000

Actual

Expenditure

R’000


R’000

Programme

Support

3 394

3 394

-

1 444

1 444

-

Contract

Management

158 095

153 729

4 366

146 269

140 958

5 311

Operator

Licence and

Permits

5 075

5 075

-

4 376

4 376

-

Operator Safety

2 416

2 416

-

3 988

3 988

-

Transport

Systems

4 181

4 181

-

1 600

1 251

349

Infrastructure

Operations

6 359

6 359

-

4 249

3 423

826

TOTAL

179 520

175 154

4 366

161 926

155 440

6 486

4.5. Programme 5: Transport Regulations

Description

The purpose of this programme is to ensure the provision of a safe road environment

through the regulation of traffic on public roads, law enforcement, the implementation of

road safety campaigns and awareness programmes and the registration and licensing of

vehicles and drivers.

Purpose

This Programme represents the core function of road traffic management and facilitates

and promotes the efficient and safe mobility on roads in the Province, ensures a sound

information base for traffic management and collection of revenue and implements

measures to ensure compliance with road safety legislation.

44

Strategic objectives

To execute traffic control and law enforcement

To provide traffic law administration services

To provide vehicle and driver licensing and registration services

To provide road safety education

To reduce fatal road accidents

Sub – Programmes

Traffic Law Enforcement

Road Safety Education

Transport Administration and Licencing

Performance Information:

The Office Support Sub-Programme continued to provide strategic support to all

the Sub-Programmes and Station in relation to issues of planning, budgeting,

reporting and monitoring and evaluation to ensure that there was alignment

between and amongst the programmes of the Department

This was done through our Quarterly performance and budget review meetings

and station visits conducted by the Programme Manager and Sub-Programme

Managers

Our Law Enforcement Sub-Programme had to intensify operations within the John

Taolo Gaetsewe Region due to the economic boom experienced through mainly

mining activities

More operations were done to ensure that we minimize road fatalities on

provincial roads.

There was a need for more multidisciplinary road blocks to ensure road safety

compliance.

The four stations (Kimberley, Colesberg, Upington and Springbok) needed to do

more weighing due to operational needs of freight transportation on our roads.

There was a need for more VCP’s to be held in the Province to minimize road

fatalities.

The four weighbridges in the Province were managed to weigh 21041 heavy

vehicles of which 578 were found to be overloaded

The rolling enforcement plan also yielded good results in our efforts to ensure the

safe mobility of passengers and goods on our roads

In this respect 227 675 vehicles were stopped and checked, 18 263 summonses

were issued and 518 multidisciplinary roadblocks were held where vehicles were

45

checked for compliance and roadworthiness and 5799 vehicles were found to

have In terms of the road safety education Road Safety Awareness

activities/interventions were conducted and 11 128 people were reached(door to

door, roadblocks, filling stations, inter denominational church services, pedestrian

safety campaigns, cyclists safety, community road safety council members, etc).

Exhibitions were conducted at International Day Against Drug Abuse

The pedestrian safety campaign was conducted in collaboration with RTMC.

Road Safety talk was conducted at Ebongo and Galeshewe Day Care Centres in

collaboration with RTMC.

In line with our mandate to provide road safety education and awareness

amongst our road users such as school children, businesses and pedestrians the

programme was able to execute a number of interventions in collaboration with

different stakeholders such as Road Accident Fund, Department of Education,

Community Road Safety Councils and Transport Companies etc.

Regional Road Safety council meeting was conducted in JT Gaetsewe region.

Collaborative with SANRAL were Road Safety Education was given to school on

the N18 road, namely Tad Caster and Motswedithuto.

Road Safety councils visited Tad Caster Primary, Motswedithoto Primary and

Voorspoed Primary.

Driver training was conducted for drivers of Eskom, Time Freight, Oranje River

Tankers and Phumatra Bus Services in the Province.

Road safety education that was conducted at schools was able to reach 20274

Learners and 481 Educators

In this regard the Province through our Learners participating in the National

Road Safety Debate was able to achieve 2nd Position Nationally and each school

that participated were awarded one Electronic Reader (eReader) to the cost of

R7500.00 per eReader and a total of R75 000.00 was shared by the schools

Traffic Law administration and Licensing

In terms of Law Administration and Licensing, the Sub Programme consist of e-

natis Help Desk, Abnormal Load and Provincial Monitoring Unit the following was

achieved in the year in review:-

20 Site visits and e-Natis inspections were conducted at Registering Authorities

in the province to ensure compliance and some of the findings include security

weaknesses of e-Natis offices were cashiers are sitting, Security around the

building has been found to be inadequate, The non-responsiveness of the

registering authorities to inspection report findings and recommendations and in

46

some instances pockets of alleged fraud and corruption was detected and

investigation are on-going.

Two hundred and sixty two five hundred and fifty seven (262 557) vehicle licenses

were issued and two hundred and nine, eight hundred and fourty (209 840)

licenses were paid on time

Eleven thousand three hundred and ninety nine (11 399)new vehicles were

registered in the province

Fourty (40) monitoring of compliance inspections were conducted at driver license

and testing centres in the Province.

Most of the finding on these compliance inspections at DLTC and VTS`s were

around: none adherence to the National Road Traffic Act and its Regulations as

well as instances of alleged fraudulent issuing of driver and learner licenses

The is also a level of responsiveness with the findings and recommendations

made by the monitoring unit, which has been communicated to Municipal

Managers and Management Representatives

National Department hosted a meeting in Northern Cape Province i.e. Driver

Technical Committee and Forum of Inspectorates

Arrange and co-ordinate Live Capturing Unit information session with

Umsobomvu and Nama Khoi Municipalities.

47

Sub-Programme: Traffic Law Enforcement


Actual Performance

Against Target

Comments on deviations

Actual

Achievement 2012/13

Planned

Target (2013/14)

Actual

Achievement

2013/14

Deviation from

planned target to Actual

Achievement Number of speed operations conducted

No baseline 1 560 1910 350 There was a need for more law enforcement operations to address speeding on our roads

Number of K78 roadblocks held

707 430 515 85 The need for more multidisciplinary road blocks was identified and executed

Number of hours weighbridge operated

2 825 3 096 3 968 872 Due to increase in mining activities and trucks operating on our roads, more weighbridge hours were needed to curb overloading

Number of road side vehicle checkpoint operations

No baseline 1 560 2187 627 The Vehicle Check Point Operations were increased based on assessments of periodic traffic volumes to manage fatigue and to check compliance

Number of road safety awareness interventions

63 130 150 20 Increase caused by requests from Companies and stakeholders for more road safety interventions

Number of schools involved in road safety education programs

99 100 104 4 Due to requests from schools for more road safety education programs

Number of license and roadworthiness compliance inspections executed

38 60 60 0 None

48


The Programme will always endeavour to remain within the targets planned, however

requests for more operations and interventions on in particular Law Enforcement and

Road Safety Education will be considered on their own merits



49


2013/2014

2012/2013

Sub- Programme Name

Final

Appropriation

R’000

Actual

Expenditure

R’000


R’000

Final

Appropriation

R’000

Actual

Expenditure

R’000

(Over)/ Under

Expendi ture

R’000

Programme

Support

2 368

2 368

0

1 954

1 954

-

Traffic Law

Enforcement

53 509

53 509

0

51 913

51 913

-

Traffic

Admin

7 199

7 199

0

6 636

6 636

-

Road Safety

2 300

2 300

0

2 361

2 361

-

TOTAL

65 376

65 376

0

62 864

62 864

-

50

5. SUMMARY OF FINANCIAL INFORMATION

5.1 Departmental receipts

2012/2013

2011/2012 Departmental receipts

Estimate Actual

Amount Collected

(Over)/Under

Collection

Estimate

Actual

Amount

Collected

(Over)/Under

Collection

R’000 R’000

R’000

R’000

R’000

R’000

Tax Receipts

Motor vehicle licences

121 093

131 892

(10 799)

107 639

124 344

(16 705)

Sale of goods and services other than capital assets

11 487

15 493

(4 005)

8 240

13 270

(5 030)

Transfers received

Fines, penalties and forfeits

1 691

2 231

(540)

1 545

2 870

(1 325)

Interest, dividends and rent on land

Sale of capital assets

425

(425)

150

(150)

Financial transactions in assets and liabilities

172

(172)

120

23

97

Total

134 271

150 213

(15 941)

117 544

140 657

51

5.2 Programme Expenditure

2013/2014

2012/2013

Programme Name

Final Appropriation

Actual

Expenditure


Final Appropriation

Actual

Expenditure

(Over)/

Under Expenditure

R’000

R’000

R’000

R’000

R’000

R’000

Administration

52 169

52 169

-

48 459

45 968

2 491

Civilian Oversight

11 090

11 090

-

11 840

11 840

-

Crime Prev & Comm Pol Rel

6 575

6 512

63

5 951

5 951

-

Transport Operations

179 520

175 154

4 366

161 926

155 440

6 486

Transport Regulations

65 376

65 376

-

62 864

62 864

-

Total

314 730

310 301

4 429

291 040

282 063

8 977

5.3 Transfer payments, excluding public entities None

5.4 Public Entities Not applicable

52

5.5 Conditional grants and earmarked funds paid

The table below describes each of the conditional grants and earmarked funds paid by the department Conditional Grant 1:

Department/ Municipality to whom the grant has been transferred

TRANSPORT, SAFETY & LIAISON

Purpose of the grant Public Transport Operations Grant

Expected outputs of the grant

Actual outputs achieved

Amount per amended DORA R 41 390

Amount transferred (R’000) R 41 390

Reasons if amount as per DORA not transferred

N/A

Amount spent by the department/ municipality (R’000)

R 41 390

Reasons for the funds unspent by the entity

Nine

Monitoring mechanism by the transferring department

5.6 Conditional grants and earmarked funds received

Conditional Grant

Department who transferred the grant

Department of Transport

Purpose of the grant To subsidize Public Transport (Bus) contracts

Expected outputs of the grant 1,653m Kilometres subsidized; 800 vehicles subsidized

Actual outputs achieved 1,646m Kilometres subsidized; 730 vehicles subsidized

Amount per amended DORA

Amount received (R’000) R41 390

Reasons if amount as per DORA was not received

N/A

Amount spent by the department (R’000)

R41 390

Reasons for the funds unspent by the entity

None

Monitoring mechanism by the receiving department

Quarterly reports, Bus subsidies sub-committee meetings and TESS (External Monitoring Contract)

5.7 Donor Funds – No donor funds received for the period under review. Not applicable

5.8 Capital investment, maintenance and asset management plan Not applicable

53

PART C: GOVERNANCE

1. INTRODUCTION

Commitment by the department to maintain the highest standards of governance is

fundamental to the management of public finances and resources. Users want assurance

that the department has good governance structures in place to effectively, efficiently and

economically utilize the state resources, which is funded by the tax payer. INTERNAL AUDIT AND AUDIT COMMITTEE

The Provincial Internal Audit Unit’s (PIAU) mandate is to provide assurance that the

risks in the department are managed in a way that allows for the achievement of

management objectives. This mandate is derived from the Public Finance

Management Act (Act 1 of 1999 and as amended by Act 29 of 1999). The Internal Audit unit was functional for the 2013/2014 financial year. The following

internal audit assignments were completed during the year under review:

Management Performance Assessment Tool

Interim Financial Statement as at 30 September 2013

Annual Financial Statement for 2012/2013

Supply Chain Management

Receivables


Risk management (fraud/all)

Information Technology Governance The internal audit unit also attended and contributed to the departmental risk

management committee meetings, quarterly departmental review sessions and ad

hoc management meetings as and when requested. The audit committee’s responsibilities arise from Section 38 (1) (a) (ii) of the Public

Finance Management Act and Treasury Regulation 3.1.13. The audit committee

adopted an audit committee charter and has regulated its affairs in compliance with

54

this charter and has discharged all its responsibilities as contained therein for the

2013/2014 financial year. The audit committee assisted the department by providing advice relating to the

reporting process, the system of internal control, the risk management processes,

the internal and external audit processes and the department’s processes for

monitoring compliance with laws and regulations as well as the code of conduct. The names of the members of the audit committee, qualifications as well as the

number of meetings attended by the members are tabulated below:

Name Qualifications Internal

or external

If internal, position in

the department

Date appointed

Date Resigned

No. of Meetings attended

Chairperson

Mr HC Ogu

Bsc Hons (Acc), CIA, CA, MBA

External N/A 1 October 2011

N/A 4 out of 4

Mr ZL Fihlani B.Com, B.Compt (Hons), M.Com, H.DipTax, CA (SA)

External N/A 1 October 2011

N/A 4 out of 4

Adv FJ van der Westhuizen

LLB, B.Iuris, Dip.Iuris

External N/A 1 October 2011 for the Health cluster AC. Assisted with the Roads cluster AC as from the 2013/2014 financial year.

N/A 4 out of 4

55

PART D: HUMAN RESOURCE MANAGEMENT 1. LEGISLATURE THAT GOVERN HR MANAGEMENT

The information provided in this part is prescribed by the Public Service Regulations

(Chapter 1, Part III J.3 and J.4). 2. INTRODUCTION

The Department has drafted a Human Resource Plan, during 2009/10 financial year. This

plan is being updated annually and forwarded to the Department of Public Service and

Administration (DPSA) via the Office of the Premier. The aim of the HR Plan is to look at

the demand and supply of employees over the MTEF. The Department has also

undertaken the Persal clean-up project, where posts that were vacant and unfunded were

removed. This is resulting into the review and update of the Department’s current

organisational structure. This will assist in setting priorities for the filling of only vacant and

funded posts on the establishment. The planning framework has also been aligned to the

outcomes of the 2011 Census data as a measure to ensure that strategies respond to

attracting and recruiting of a skilled and capable workforce. The Department is also still well on track in ensuring that employees are assessed in

accordance to the Employees Performance Management and Development System

(EPMDS). The Department has been performing well in this area over the past three years

and will continue to do so. The Employees Wellness programme is not performing

optimally, due to human capacity constraints, but discussions are ongoing to look at

strategies to overcome this weakness.

Policy development

The Department has a dedicated official to coordinate policy developments in the

Department. The Policy register has been developed and updated to track the

development of policies within the Department. The Department is challenged, mainly

through the human capacity constraints, but also officials not clearly adhering to prescripts

in terms of the development of policies.

56

3. HUMAN RESOURCE OVERSIGHT STATISTICS

3.1. Personnel related expenditure

The following tables summarizes the final audited personnel related expenditure by

programme and by salary bands. In particular, it provides an indication of the following:

amount spent on personnel;

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

Table 3.1.1 Personnel expenditure by programme

Programme

Total Expenditure (R’000)

Personnel Expenditure (R’000)

Training Expenditure (R’000)

Professional and Special Services (R’000)

Personnel cost as a percent of totalexpenditure

Average personnel cost per employee (R’000)

Employ- ment

Administration 52 169 30 111 407 0 58 86 350 Civilian Oversight

11 090 8 959 10 0 81 26 350

Crime Prevention & Community Police Relations

6 512 4 657 38 0 72 13 350


175 154 7 906 29 0 5 23 350


65 376 52 224 103 0 80 149 350

Total 310 443 104 009 587 0 34 297 350

Table 3.1.2 Personnel costs by salary band

Salary bands

Personnel Expenditure (R’000)

% of total personnel cost

Average personnel cost per employee (R’000)

Total cost for Department including goods andtransfer (R’000)

Number of employees

Skilled (Levels 3-5) 8 462 8 180 043 104 009 47 Highly skilled production (Levels 6-8)

50 507 49 241 660 104 009 209

Highly skilled supervision (Levels 9-12)

31 598 30 509 645 104 009 62

Senior management (Levels 13-16)

8 909 9 1 113 625 104 009 8

Contract (Levels 1-2) 1 726 2 95 889 104 009 18 Contract (Levels 3-5) 11 0 0 104 009 0 Contract ( Level 9-12) 735 1 367 500 104 009 2 Contract (Levels 13-16) 973 1 973 000 104 009 1 Abnormal appointments 1 088 1 77 714 104 009 14 Total 104 009 100 288 114 104 009 361

57

Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme

Programme

Salaries Overtime

Home Owners Allowance

Medical Assistance

Total personnel cost per pro-gramme (R’000)

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

Administration 20 896 69 27 0.1 606 2 1 055 3 30 216

Civilian Oversight

6 442 72 0 0 276 3 620 7 8 960

Social Crime Prevention & Community Police Relations

3 284 71 0 0 85 2 185 4 4 657


5 631 71 17 0.2 183 2.3 354 4.4 7 952


34 877 67 719 1.3 2 005 4 3 288 6 52 224

Total 71 130 68 763 0.7 3 155 3 5 502 5 104 009

Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band

Salary Bands

Salaries

Overtime


Medical Assistance

Total personnel cost per salary band (R’000)

Amount (R’000)

Salaries as a % of per-sonnel

cost

Amount (R’000)

Overtime as a % of personne

l cost

Amount (R’000)

HOA as a % of

personnel cost

Amount (R’000)

Medical

Assistance as a % of personnel

cost

Skilled (Levels 3-5)

4 814

57

10

0.1

511

6

879

10

8 462

Highly skilled production (Levels 6-8)

33 930

67

655

1

2 147

4

3 507

7

50 507

58

Salary Bands

Salaries

Overtime


Medical Assistance

Total personnel cost per salary band (R’000)


22 849

72

94

0.2

417

1.3 959

3

31 598

Senior

management

(Levels 13-16)

6 442

72

0

80

1 157

2

8 909

Contract

(Levels 1-2)

1 719

99

4

3

0

0

0

0

1 726

Contract

(Levels 3-5)

11

100

0

0

0

0

0

0

11

Contract ( Level 9-12)

573

78

0

0

0

0

0

0

735

Contract

(Levels 13-16)

792

81

0

0

0

0

0

0

973

Abnormal

appointment

0

0

0

0

0

0

0

0

1 088

Total

71 130

68

763

1

3 155

3

5 502

5

104 009

3.2 Employment and Vacancies

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

vacancies.

The following tables summarise the number of posts on the establishment, the number of

employees, the vacancy rate, and whether there are any staff that are additional to the

establishment.

This information is presented in terms of three key variables:

- programme

- salary band

- critical occupations

Departments have identified critical occupations that need to be monitored. In terms of

current regulations, it is possible to create a post on the establishment that can be

occupied by more than one employee. Therefore, the vacancy rate reflects the percentage

of posts that are not filled.

Table 3.2.1 Employment and vacancies by programme

59

Programme

Number of posts

Number of posts filled

Vacancy Rate


additional to the establishment

Programme 01: Administration

93

81

12.9

3

Programme 02: Civilian Oversight

34

32

5.9

0

Programme 03: Social Crime Prevention & Community Police Relations

11

11

0

0

Programme 04: Transport Operations

30

25

16.7

0

Programme 05: Transport Regulations

222

201

9.5

0

Total

390

350

10.3

3

Table 3.2.2 Employment and vacancies by salary band

Salary band

Number of posts


Vacancy Rate

Number of posts filled additional to the establishment

Lower skilled (Levels 1-2)

3

0

100

0


58

50

13.8

0


230

209

9.1

0


69

62

10.1

0


9

8

11.1

0

Contract (Level 1-2) Permanent

18

18

0

0

Contract (Level9-12) Permanent

2

2

0

2

Contract (Level 13-16) Permanent

1

1

0

1

Total 390 350 10.3 3

Table 3.2.3 Employment and vacancies by critical occupations

60

Critical occupations

Number of posts


Vacancy Rate

Number of posts filled additional to the

establishment

Administrative related, Permanent

77

71

7.8

1

Cleaners in offices workshops hospitals etc., Permanent

6

5

16.7

0

Computer system designers and analysts., Permanent

2

2

0

0

Finance and economics related, permanent

2

2

0

0

Financial and related professionals, Permanent

1

1

0

0

Financial clerks and credit controllers, Permanent

11

10

9.1

0

General legal administration & rel. professionals, Permanent

2

2

0

0

Human resources clerks, Permanent

9

7

22.2

0

Human resources related, Permanent

2

2

0

0

Legal related, Permanent

1

1

0

0

Library mail and related clerks, Permanent

3

3

0

0

Messengers porters and deliverers, Permanent

4

3

25

0

Other administrative & related clerks and organisers, Permanent

63

58

7.9

1

61

Other administrative policy and related officers, Permanent

23

19

17.4

0

Other occupations, Permanent

1

1

0

0

Regulatory inspectors, Permanent

164

147

10.4

0

Secretaries & other keyboard operating clerks, Permanent

9

7

22.2

0

Security officers, Permanent

2

2

0

0

Senior managers, Permanent

8

7

12.5

1

Total

390

350

10.3

3

3.3 Job Evaluation

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. The following table

summarises the number of jobs that were evaluated during the year under review. The

table also provides statistics on the number of posts that were upgraded or downgraded.

Table 3.3.1 Job Evaluation by Salary band

Salary band

Number

of posts

Number of

Jobs

Evaluated

% of posts

evaluated

by salary

bands

Posts Upgraded

Posts downgraded

Number

% of posts

evaluated

Number

% of posts

evaluated

Contract (Level 1-2)

18

0

0

0

0

0

0

Contract (Level9-12)

2

0

0

0

0

0

0

Contract (Band A)

1

0

0

0

0

0

0


58

0

0

0

0

0

0


230

0

0

0

0

0

0

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

62

upgraded

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 0 0 0 0

The following table summarises the number of cases where remuneration bands exceeded the

grade determined by job evaluation. Reasons for the deviation are provided in each case.

Table 3.3.3 Advertising and filling of SMS posts for the period 01 April 2013 to 31 March 2014

SMS Level

Advertising

Filling of Posts

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

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

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

Director – General / Head of Department

0

0

0

Salary level 16

0

0

0 Salary level 15

0

0

0

Salary level 14

0

0

0

Salary Level 13

0

0

0

Table 3.3.4 Reasons for vacancies not filled within twelve months

The Department had only two advertised posts of level 12 and 7, which were both filled within twelve months. Other posts which were filled in the year under review were advertised in 2012/2013 and overlapped to be filled in 2013/2014 financial year.

3.4 Employment Changes

63

This section provides information on changes in employment over the financial year.

Turnover rates provide an indication of trends in the employment profile of the department.

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

occupations.

Table 3.4.1 Annual turnover rates by salary band

Salary Band

Number of employees per band as on 1

April 2013

Appointments and transfers

into the department

Terminations and transfers

out of the department

Turnover rate


46

5

1 2.2


206

0

6 2.9


62

0

3 4.8

Senior Management Service Band A

6

0

0 0

Senior Management Service

Band B

1

0

0 0

Senior Management Service Band C

1

0

0 0

Senior Management Service Band D

1

0

0 0

Contract (levels 1-2), permanent

18

5

16 88.9

Contract (Levels 3-5), permanent

1

0

0 0

Contract (Level 9-12), permanent

1

1

0 0

Contract (Band A), permanent

1

0

0 0

Total

344

12

26 7.6

Table 3.4.2 Annual turnover rates by critical occupation

64

Occupation: Number of employees per occupation as on 1 April 2013

Appointments and transfers into the department

Terminations and transfers out of the department

Turnover rate

Administrative related, Permanent

65 5 4 6.2

Cleaners in offices workshops hospitals etc., Permanent

6 0 0 0

Computer system designers and analysts., Permanent

2 0 0 0

Finance and economics related, permanent

1 0 0 0

Financial and related professionals, Permanent

1 0 0 0

Financial clerks and credit controllers, Permanent

8 1 0 0

General legal administration & rel. professionals, Permanent

2 0 0 0

Human resources clerks, Permanent

8 0 1 12.5

Human resources related, Permanent

2 0 0 0

Library mail and related clerks, Permanent

2 1 0 0

Messengers porters and deliverers, Permanent

3 0 0 0

Other administrative & related clerks and organisers, Permanent

57 2 12 21.2

Other administrative policy and related officers, Permanent

17 0 1 5.9

Other occupations, Permanent

1 1 0 0

Regulatory inspectors, Permanent

153 0 6 3.9

Secretaries & other keyboard operating clerks, Permanent

6 2 2 33.3

Security officers, Permanent

2 0 0 0

Senior managers, Permanent

8 0 0 0

Total 344 12 26 7.6

Table 3.4.3 Reasons why staff left the department

65

Termination Type

Number % of total employment

Death, permanent 3 0.9

Resignation 6 1.7

Expiry of contract, permanent

14

4.1

Dismissal, misconduct, permanent

1

0.3

Retirement, permanent 2 0.6

Total 26 7.6

Total number of employees who left as a % of the total employment 7.6

Table 3.4.4 Promotions by critical occupation

66

Occupation

Employees as at 1 April 2010

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

Administrative related

50

10

20

29

58

Auxiliary and related workers

0

1

0

0

0

Cleaners in offices workshops hospitals etc.

6

0

0

6

100

Computer system designers and analysts.

1

0

0

1

100

Finance and economics related

1

1

100

0

0

Financial and related professionals

1

0

0

0

0

Financial clerks and credit controllers

4

3

75

3

75

General legal administration & rel. professionals

2

0

0

0

0

Human resources clerks

8

0

0

7

87.5

Human resources related

2

0

0

1

50

Legal related

1

0

0

0

0

Library mail and related clerks

3

0

0

1

33.3

Messengers porters and deliverers

2

2

100

2

100

Other administrative & related clerks and organisers

43

0

0

33

76.7

Other administrative policy and related officers

18

0

0

10

55.6

Table 3.4.5 Promotions by salary band

67

Salary Band

Employees 1 April 2013

Promotio ns to another salary level

Salary bands promotions as a % of employees by salary level

Progressions to another notch within a salary level

Notch progression s as a % of employees by salary band

Skilled (Levels 3-5) 46 0 0 34 73.9 Highly skilled production (Levels 6-8)

206

8

3.9

136

66

Highly skilled supervision (Levels9-12)

62

2

3.2

31

50

Senior management (Levels13-16)

9

0

0

1

11.1

Contract (levels 1- 2), permanent

18

0

0

0

0

Contract ( level 3- 5), permanent

1

0

0

0

0

Contract (level 9- 12),permanent

1

0

0

0

0


1

0

0

0

0

Total 344 10 2.9 202 58.7

3.5 Employment Equity Table 3.5.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as at 31 March 2013

Occupational categories (SASCO)

Male Female Total

Afr

ican

Col

oure

d

Indi

an

Whi

te

Afr

ican

Col

oure

d

Indi

an

Whi

te

Legislators, senior officials and managers 4 3 0 0 1 0 0 0 8

Professionals 3 3 0 0 4 0 0 0 10

Technicians and associate professionals 28 10 0 4 34 8 1 5 90

Clerks 22 4 0 0 44 9 2 4 85

Service and sales workers 50 30 0 2 34 32 0 1 149

Elementary occupations 4 2 0 0 0 2 0 0 8

Total 111 52 0 6 117 51 3 10 350

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

68

Table 3.5.2 Total number of employees (including employees with disabilities) in each of the following occupational bands on 31 March 2013

Occupational Bands

Male Female

Afr

ican

Col

oure

d

Indi

an

Whi

te

Afr

ican

Col

oure

d

Indi

an

Whi

te

Tota

l

Top Management 1 1 0 0 0 0 0 0 2

Senior Management 3 2 0 0 1 0 0 0 6

Professionally qualified and experienced specialists and mid-management

24 11 0 4 16 4 0 3 82

Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents

66 32 0 2 64 37 2 6 209

Semi-skilled and discretionary decision making

12 4 0 0 24 9 1 0 50

Contract(Senior management) 1 0 0 0 0 0 0 0 1

Contract(professionally qualified), permanent

1 0 0 0 0 0 0 1 2

Contract (unskilled), permanent

3 2 0 0 12 1 0 0 18

Total 111 52 0 6 117 51 3 10 350

69

Table 3.5.3 Recruitment

Occupational Bands

Male Female

Afr

ican

Col

oure

d

Indi

an

Whi

te

Afr

ican

Col

oure

d

Indi

an

Whi

te

Tota

l

Top Management, permanent 1 0 0 0 0 0 0 0 1

Semi-skilled and discretionary decision making, permanent

1 0 0 0 4 0 0 0 5

Contract( professionally qualified), permanent

0 0 0 0 0 0 0 1 1

Contract ( Unskilled), permanent

2 0 0 0 3 0 0 0 5

Total 4 0 0 0 7 0 0 1 12 Employees with disabilities 0 0 0 0 0 0 0 0 0

Table 3.5.4 Promotions

Occupational Bands

Male Female

Afr

ican

Col

oure

d

Indi

an

Whi

te

Afr

ican

Col

oure

d

Indi

an

Whi

te

Tota

l

Senior Management 0 1 0 0 0 0 0 0 1

Professionally qualified and experienced specialists and mid-management

12 8 0 3 7 3 0 0 30


44 22 0 1 46 26 2 3 144


6 4 0 0 17 6 1 0 34

Total 62 35 0 4 70 35 3 3 212 Employees with disabilities 0 0 0 0 0 0 0 0 0

70

Table 3.5.5 Terminations Occupational Bands

Male Female

Afr

ican

Col

oure

d

Indi

an

Whi

te

Afr

ican

Col

oure

d

Indi

an

Whi

te

Tota

l

Professionally qualified and experienced specialist

2 1 0 0 0 0 0 0 3


1 1 0 0 3 1 0 0 6


0 0 0 0 1 0 0 0 1

Contract (Unskilled), permanent

3 1 0 0 11 1 0 0 16

Total 6 3 0 0 15 2 0 0 26 Employees with disabilities

0 0 0 0 0 0 0 0 0

Table 3.5.6 Disciplinary action

Male

Female

Afr

ican

Col

oure

d

Indi

an

Whi

te

Afr

ican

Col

oure

d

Indi

an

Whi

te

Tota

l

Disciplinary action

12

0

0

0

5

2

0

0

19

Table 3.5.7 Skills development

71

Occupational categories

Male Female

Afr

ican

Col

oure

d

Indi

an

Whi

te

Afr

ican

Col

oure

d

Indi

an

Whi

te

Tota

l

Legislators, senior officials and managers

15 7 0 0 9 3 0 0 34

Professionals 0 0 0 0 0 0 0 0 0

Technicians and associate professionals

0 0 0 0 0 0 0 0 0

Clerks 5 2 0 0 4 3 0 0 14

Service and sales workers

0 0 0 0 0 0 0 0 0

Skilled agriculture and fishery workers

0 0 0 0 0 0 0 0 0

Craft and related trades workers

0 0 0 0 0 0 0 0 0

Plant and machine operators and assemblers

0 0 0 0 0 0 0 0 0

Elementary occupations

0 0 0 0 0 0 0 0 0

Total 20 9 0 0 13 6 0 0 48

Employees with disabilities

0 0 0 0 0 0 0 0 0

72

3.6 Performance Rewards To encourage good performance, the department has granted the following performance

rewards during the year under review. The information is presented in terms of race,

gender, and disability), salary bands and critical occupations.

Table 3.6.1 Performance Rewards by race, gender and disability Beneficiary Profile Cost

Number of beneficiaries

Total number of employees in group

% of total within group

Cost (R’000)

Average cost per employee

African

Male 35 111 31.5 212 6 045

Female 35 117 29.9 198 5 654

Asian

Male 0 0 0 0 0

Female 3 3 100 12 4 058

Coloured

Male 20 52 38.5 140 7 001

Female 15 51 29.4 69 4 590

White

Male 4 6 66.7 46 11 432

Female 4 10 40 24 5 963

Employees with a disability 0 0 0 0 0

Total 116 350 33.1 700 6 035

73

Table 3.6.2 Performance Rewards by salary band for personnel below Senior Management Service

Salary Bands

Beneficiary Profile Cost


Number of employee

% of total within salary bands

Total Cost (R’000)


Total cost as a % of the total personnel expenditure

Skilled (Levels 3-5) 19 50 38 59 3 105 9

Highly skilled production (Levels 6-8) 73 209 34.9 338 4 630 53

Highly skilled supervision (Levels 9-

12) 21 62 33.9 239 11 381

38

Contract ( Level 1-2) 0 18 0 0 0

Contract(Level 9-12) 0 2 0 0 0

Abnormal appointments 0 14 0 0 0

Total 113 355 31.8 636 5 628 100

Table 3.6.3 Performance Rewards by critical occupation

Critical Occupations Beneficiary Profile Cost


Number of employees

% of total within occupation

Total Cost (R’000)


Administrative related 23 71 32.4 199 8 652 Cleaners in offices workshops hospitals etc.

4 5 80 12 3 000

Computer system designers and analysts.

0 2 0 0 0

Finance and economics related 0 2 0 0 0

Financial and related professionals 1 1 100 20 20 000

Financial clerks and credit controllers 3 10 30 11 3 667

General legal administration & rel. professionals

0 2 0 0 0

Human resources clerks 2 7 28.6 11 5 500

Human resources related 1 2 50 15 15 000

Legal related 0 1 0 0 0 Library mail and related clerks 1 3 33.3 4 4 000

Messengers porters and deliverers 1 3 33.3 3 3 000

74

Other administrative & related clerks and organizers

18 58 31 69 3 833

Other administrative policy and related officers

10 19 52.6 60 6 000

Other occupations 0 1 0 0 0 Regulatory inspectors 47 147 32 238 5 064 Secretaries & other keyboard operating clerks

3 7 42.9 14 4 667

Security officers 0 2 0 0 0 Senior managers 2 7 28.6 45 22 500 TOTAL 116 350 33.1 701 6 043

Table 3.6.4 Performance related rewards (cash bonus), by salary band for Senior Management Service

Salary Band

Beneficiary Profile Total Cost

(R’000)


% of SMS wage Bill

Personnel Costs

SMS (R’000) Number of bene-ficiaries

Number of employees

% of total within band

Band A 3 6 50 64 21 333 1 6 325

Band B 0 1 0 0 0 0 0

Band C 0 1 0 0 0 0 0

Band D 0 1 0 0 0 0 0

Total 3 9 50 64 21 333 1 6 325

3.7 Foreign Workers

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

Table 3.7.1 Foreign workers by salary band

Salary Band 1 April 2013 31 March 2014 Change

Number % of total Number % of

total Number % change

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

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


0 0 0 0 0 0


0 0 0 0 0 0


0 0 0 0 0 0

Total 0 0 0 0 0 0

75

3.8 Leave utilisation

The Public Service Commission identified the need for careful monitoring of sick leave

within the public service. The following tables provide an indication of the use of sick leave

and disability leave. In both cases, the estimated cost of the leave is also provided.

Table 3.8.1 Sick leave

Salary Band

Total days

% days

with medical certifica-

tion

Number of Employee

s using sick leave

% of total employees using

sick leave

Average days per employee

Estimated Cost

(R’000)

Total no. of employees using sick

leave

Total no. of days


tion


462 87.4 39 13.4 12 207 292 404


1 905 80.2 189 64.7 10 1 204 292 1 528

Highly skilled supervision (Levels9-12)

425 87.1 45 15.4 9 649 292 370


8 75 2 0.7 4 24 292 6

Contract (Levels 1-2)

92 69.6 16 5.5 6 25 292 64


3 100 1 0.3 3 2 292 3


3 100 1 0.4 3 8 249 3

Total 2 895 82 292 100 10 2 116 292 2 375

Table 3.8.2 Disability leave (temporary and permanent)

Salary Band

Total days taken

% days with medical

certification

Number of Employees

using disability

leave

% of total employees

using disability

leave

Average days per employee

Est

Cost

(R’000)

Total no. of days


tion

Total no. of

employ ees

using disability leave

Skilled

(Level 3-5)

49 91.8

3

42.9

16

23

45

7

76

Highly

skilled

production

(Levels 6-8)

1 100

1

14.3

1

1

1

7

Highly skilled

supervision

(Levels 9-

12)

24 100

3

42.9

8

51

24

7

Total

74 94.6

7

100

11

75

70

7

The table below summarises the utilisation of annual leave. The wage agreement

concluded with trade unions in the PSCBC in 2000 requires management of annual

leave to prevent high levels of accrued leave being paid at the time of termination of

service.

Table 3.8.3 Annual Leave

Salary Bands

Total days taken

Average per

employee

Number of employees who took

leave

Skilled Levels 3-5) 1 074 22 49

Highly skilled production (Levels 6-8) 4 914 23 213

Highly skilled supervision(Levels 9-12) 1 549 24 64

Senior management (Levels 13-16) 193 24 8


260

14

18


26

26

1


34

34

1

Total 8 050 23 354

77

Table 3.8.4 Capped leave

Salary Bands

Total days of capped

leave taken

Average number of

days taken per employee

Average

capped leave per employee

as at 31 December

2013

Number of employees who took

capped leave

Total no. of capped leave

available at 31

December 2013

Number of employees

at 31 December

2013


7 2

56 3 1 778 32

Total

7 2

56 3 1 778 32

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

Table 3.8.5 Leave payouts

REASON Total Amount (R’000)

Number of Employees

Average payment per employee

Leave payout for 2013/14 due to non- utilization of leave for the previous cycle

0

0

0

Capped leave payouts on termination of service for 2013/14

0

0

0

Current leave payout on termination of service for 2013/14

0

3

0

Total 0 3 0

3.9 HIV/AIDS & Health Promotion Programmes

Table 3.9.1 Steps taken to reduce the risk of occupational exposure

Units/categories of employees identified to be at high risk of

contracting HIV & related diseases (if any) Key steps taken to reduce

the risk

Transport Regulations Awareness campaigns The provision of basic first aid education and kits

78

Table 3.9.2 Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and provide the required information)

Question YES NO

Details, if yes

1. Has the department designated a member of the SMS to implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position.

YES Director: Mr. J. Jason

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

NO The unit exist on the approved structure. There is currently no employee/s in the unit due to resignation. However as part of restructuring, a new person has been identified to fill the position.

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

YES Employee health and wellness HIV/AIDS and TB management Health and wellness test and screening

Handling of PILIR cases and referrals to health risk manager PILIR awareness programmes Policy development, review and implementation

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.

NO

5. Has the department reviewed its employment policies and practices to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so reviewed.

YES HIV/AIDS Recruitment and selection

79

6. Has the department introduced measures to protect HIV-positive employees or those perceived to be HIV-positive from discrimination? If so, list the key elements of these measures.

YES A policy on HIV/AIDS where human rights issues and access to justice are ensured with the right to privacy and confidentiality are upheld

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

NO

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

NO

3.10 Labour Relations

Table 3.10.1 Collective agreements

Total collective agreements None

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

Table 3.10.2 Misconduct and disciplinary hearings finalized

Outcomes of disciplinary hearings Number % of total

Correctional counseling 0 0%

Verbal warning 0 0%

Written warning 0 0%

Final written warning 0 0%

Suspended without pay 0 0%

Fine 0 0%

Demotion 0 0%

Dismissal 1 10%

Not guilty 1 10%

Case withdrawn 0 0%

Total 2 0.6%

80

Table 3.10.3 Types of misconduct addressed at disciplinary hearings

Type of misconduct Number % of total

Financial misconduct 2 11%

Ordinary misconduct 17 89%

Total 19 100%

Table 3.10.4 Grievances logged

Grievances lodged/resolved Number % of Total

Number of grievances resolved 10 71%

Number of grievances not resolved 4 29%

Total number of grievances lodged 14 100%

Table 3.10.5 Disputes logged

Disputes upheld/dismissed Number % of Total

Number of disputes upheld 0 0

Number of disputes dismissed 1 100%

Total number of disputes lodged 1 100%

Table 3.10.6 Strike actions

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 3.10.7 Precautionary suspensions

Number of people suspended 7

Number of people whose suspension exceeded 30 days 7

Average number of days suspended 811

Cost (R’000) of suspensions 1 852 449.18

81

3.11 Skills development

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

Table 3.11.1 Training needs identified

Occupational Categories Gender

Number of employees as at 1 April 2013

Training needs identified at start of reporting period

Learnerships

Skills Programmes & other short courses

Other forms of training

Total


Female 0 70 0 70

Male 0 34 0 34

Professionals Female 0 0 0 0

Male 0 0 0 0


Female 0 0 0 0

Male 0 0 0 0

Clerks Female 3 88 0 91

Male 3 56 0 59


Female 0 0 0 0

Male 0 0 0 0


Female 0 0 0 0

Male 0 0 0 0

Crafts and related trades workers

Female 0 0 0 0

Male 0 0 0 0


Female 0 0 0 0

Male 0 0 0 0

Elementary occupations

Female 0 0 0 0

Male 0 0 0 0

Sub Total Female 3 158 0 161

Male 3 90 0 93

Total 6 248 0 254

82

Table 3.11.2 Training provided for the period

Occupational Categories Gender

Number of employees as at 1 April 2013

Training provided within the reporting period

Learnerships

Skills Programmes & other short courses

Other forms of training

Total


Female

0

0

19

0

19

Male

0

0

15

0

15

Professionals Female

0

0

0

0

0

Male

0

0

0

0

0


Female

0

0

0

0

0

Male

0

0

0

0

0

Clerks Female

0

2

4

0

6

Male

0

1

10

0

11


Female

0

0

0

0

0

Male

0

0

0

0

0


Female

0

0

0

0

0

Male

0

0

0

0

0

Crafts and related trades workers

Female

0

0

0

0

0

Male

0

0

0

0

0


Female

0

0

0

0

0

Male

0

0

0

0

0

Elementary occupation

Female

0

0

0

0

0

Male

0

0

0

0

0

Sub Total Female

0

2

23

0

25

Male

0

1

25

0

26

Total

0

3

48

0

51

83

3.12 Injury on duty

The following tables provide basic information on injury on duty.

Table 3.12.1 Injury on duty

Nature of injury on duty Number % of total

Required basic medical attention only 0 0

Temporary Total Disablement 0 0

Permanent Disablement 0 0

Fatal 0 0

Total 0 0 3.13 Utilisation of Consultants

Table 3.13.1 Report on consultant appointments using appropriated funds

Project Title Total number of consultants that

worked on the project

Duration: Work days

Contract value in Rand

Provincial Land Transport Framework

1 Twelve (12) months [264 days]

R1,010m

Project Management for four key transport infrastructure projects

1 Eighteen (18) months [396 days]

R1,999m

Total number of projects Total individual consultants

Total duration: Work days

Total contract value in Rand

2 2 R3,009m

Table 3.13.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs)

Project Title

Percentage

ownership by HDI groups

Percentage

management by HDI groups

Number of Consultants from HDI groups that work on

the project

Provincial Land Transport Framework

100% 100% 1

Project Management for four key transport infrastructure projects

100% 100% 1

84

Table 3.13.3 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

0 0 0 0

Total number of projects

Total individual

consultants

Total duration:

Work days

Total contract value

in Rand

0 0 0 0 Table 3.13.4 Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs)

Project Title Percentage ownership by HDI groups

Percentage management by HDI groups

Number of Consultants from HDI groups that work on the project

0 0 0 0

85

PART E: FINANCIAL INFORMATION

Table of Contents

Report of the Audit Committee 86

Report of the Accounting Officer 90

Appropriation Statement 106

Notes to the Appropriation Statement 121

Statement of Financial Performance 123

Statement of Financial Position 124

Cash Flow Statement 125

Notes to the Annual Financial Statements (including Accounting policies) 126

Annexures 158

86

DEPARTMENT OF TRANSPORT, SAFETY & LIAISON Vote 3

REPORT OF THE AUDIT COMMITTEE For the year ended 31 March 2014

DEPARTMENT OF TRANSPORT, SAFETY & LIAISON

1. REPORT OF THE AUDIT COMMITTEE We are pleased to present our report for the financial year ended 31 March 2014. The Audit Committee was operational throughout the year and had several engagements with management on crucial financial management, internal control, risk management and governance issues during the year. The Audit Committee acknowledges the attendance and participation of senior management including the Accounting Officer in the Audit Committee meetings

2. AUDIT COMMITTEE MEMBERS AND ATTENDANCE In terms of PFMA, section 77(b), an audit committee must meet at least twice a year. In addition, Treasury Regulations, section 3.1.16, provides that an audit committee must meet at least annually with the Auditor-General. The audit committee met four times during the year in compliance with the PFMA and also met with the Auditor General.

The names of the members of the audit committee, qualifications as well as the number of meetings attended by the members are tabulated below:

Name Qualifications Internal

or external

If internal, position in

the department

Date appointed

Date Resigned

No. of Meetings attended

Chairperson

Mr HC Ogu

Bsc Hons (Acc), CIA, CA, MBA

External N/A 1 October 2011 N/A 4 out of 4

Mr ZL Fihlani B.Com, B.Compt (Hons), M.Com, H.DipTax, CA (SA)

External N/A 1 October 2011 N/A 4 out of 4

Adv FJ van der Westhuizen

LLB, B.Iuris, Dip.Iuris

External N/A 1 October 2011 for the Health cluster AC. Assisted with the Roads cluster AC as from the 2013/2014 financial year.

N/A 4 out of 4

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

4. THE EFFECTIVENESS OF INTERNAL CONTROL Our review of the findings of the Internal Audit work, which was based on the risk assessments conducted in the department revealed certain weaknesses, which were then raised with the Department.

The following internal audit assignments were completed during the year under review: Management Performance Assessment Tool Interim Financial Statement as at 30 September 2013 Annual Financial Statement for 2012/2013 Supply Chain Management Receivables Performance Information Risk management (fraud/all) Information Technology Governance

The following were areas of concern:

Supply Chain Management Sufficient audit evidence could not be obtained for the review of journals. Furthermore the accrual list was not reviewed and authorized on a monthly basis.

Receivables Management appointed New Integrated Credit Solutions (“NICS”) to assist with

the eNatis cleanup project, which will determine the exact degree of recoverability of the receivables.

Sufficient and appropriate supporting documentation were not attached to all revenue journals to confirm correct allocation of revenue received.

Performance Information Indicators and targets in the Annual Performance Plan were not well-defined, and do not have a clear unambiguous meaning (specific) Risk Management The Department did not have a functional Risk Management Committee for the2013/14 financial year as the function was only active in the last quarter of the year.

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Information Technology Governance

The ICT function and IT governance is not fully implemented at a strategic level within the department, therefore ICT provides limited support to the department in achieving its objectives.

Management has however developed a pragmatic action plan to address the above issues within a reasonable time period.

5. IN-YEAR MANAGEMENT AND MONTHLY/QUARTERLY REPORT The department has been reporting monthly and quarterly to the Treasury as is required by the PFMA. We had engagements with the Department’s management to provide clarity on completeness and quality of the monthly and quarterly reports during our quarterly meetings and officials of the Department were able to clarify areas of concern raised by the audit committee.

6. EVALUATION OF FINANCIAL STATEMENTS 6.1 The audit committee has reviewed the unaudited financial statements

for the year ended 31 March 2014 and has discussed matters of concern with management. The audit committee has further reviewed the audited financial statements and discus the statements with the Auditor-General as well as the Accounting Officer.

6.2 The audit committee has reviewed the Auditor-General’s management report and management response thereto and as directed management to develop a comprehensive action plan to address all issues raised by the Auditor-General. The audit committee will review the action plan and monitor implementation thereof during the quarterly audit committee meetings.

6.3 The audit committee has reviewed the accounting policies applied in the compilation of the annual financial statements and is satisfied that the policies are consistent with those of prior year, have been consistently applied and are in accordance with the National Treasury guidelines.

6.4 The audit committee reviewed the department’s compliance with legal and regulatory provisions during the quarterly audit committee meetings and management has been directed to implement remedial measures where instances of non compliance were noted.

6.5 The audit committee has reviewed the information on predetermined objectives to be included in the annual report as part of the review of the audited financial statements.

6.6 The audit committee has review significant adjustments resulting from the audit as part of the review of the audited financial statements

6.7 The audit committee hereby indicates its concurrence with the Auditor- General’s conclusion on the annual financial statement as well as the unqualified audit opinion of the Auditor-General.

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7. INTERNAL AUDIT The audit committee is satisfied as to the effectiveness of the internal audit function during the year and that the internal audit activity has to a large extent addressed the risks pertinent to the Department.

8. AUDITOR-GENERAL SOUTH AFRICA We have reviewed the Department’s implementation plan for audit issues raised in the prior year and we are satisfied that the matters have been adequately resolved except for the following:

Contingent liabilities for the Pembley Fleet services have not been finalised.

Non compliance with payments within 30 days Non compliance with Supply Chain Management prescripts resulting in

irregular expenditure in the year E-Natis reconciliation is yet to be finalised

The audit committee met with representatives from the Office of the Auditor- General South Africa during the year to discuss issues of mutual concern and ensure that there are no unresolved issues.

C. Ogu Chairperson of the Audit Committee

31 July 2014

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REPORT OF THE ACCOUNTING OFFICER For the year ended 31 March 2014

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

1. General review of the state of financial affairs

The Department’s overall budgetary allocation, for the 2013/14 financial period under review,

is R 314 730 000.

While the budget management functions are being driven by a theme of “compliance More and improved processes have been implemented, throughout the Department, to ensure better planning, and more effective alignment of financial resources.

Thus managers are required to indicate their plans, the benefits expected to accrue from the planned services, and for regular progress reports to management.

Management are expected to assume overall responsibility, for the successful rollout of programmes, with interventions being made, as and when necessary.

Systems to monitor performance:

Total compliance with, and observance of, supply chain management processes; Reduction of payment turnaround time, to service providers, to less than ten (10) days, after receipt of claims;

Regular monitoring and reporting of programme financial performance, with necessary interventions;

Full disclosure and provision of required financial information and reports, to oversight bodies: Portfolio Committee, Standing Committee on Public Accounts, Auditor General, Provincial Treasury;

Finalisation of individual senior managers’ performance agreements, with outlined responsibilities, to facilitate monitoring of performance;

Regular performance monitoring and assessment, though the employee performance monitoring and development system;

Close liaison with the South African Police Services, further enhances delivery of core mandates, especially through the recently launched “provincial crime prevention strategy”.

The function recently taken-over, i.e. learner transport, which was transferred from the Department of Education, has stabilised, and the turbulence of strikes has subsided, to a large degree, especially in the John Taolo Gaetsewe District. The route audit and –verification & clean-up exercise, performed by Sizwe Ntsaluba Gobodo, was concluded in February 2014. Thus the Department will now issue tenders for the performance of the function, throughout the Province.

91

DEPARTMENT OF TRANSPORT, SAFETY & LIAISON

Vote 3 REPORT OF THE ACCOUNTING OFFICER

For the year ended 31 March 2014 The route clean-up and verification exercise included, among others: included:

Verification of the distances of the respective routes; Conditions of these routes, be they gravel or tarred; Types and conditions of the utilised vehicles, as well as the number of these vehicles.

The Operations Licensing Board functions well, with its own members, and regulating the transport sector, within the Province. A conditional grant (Public Transport Operators Grant), for the management of public transport, funds the operations of the Board and the sector.

There are two (2) important areas, where the Department faces significant challenges: Human Resource Needs

Funding for increased capacity, in the Department, has not been adequately provided, except for enhanced revenue generation. Especially with the current recovery process, for old E-natis debt, the increased capacity, albeit not adequate, will enhance the management effectiveness of the function, and increase the capacity to generate and collect more revenue.

Planning for Human Resources Due to the Department’s flat organisational structure, the staff’s prospects for upward mobility are limited. However, with the planned re-design of the structure, more and more staff will make it to a higher level of appointment, due to opportunities which are available.

Even though it is a priority, to create a Civillian Secretariat, under the Department, for purposes of greater co-ordination of the activities with the South African Police Services, necessary funding has not been provided (this is a National mandate, which requires that “funds should follow function”. Thus, without the requisite funds, the envisaged function may not be realised. It should be borne in mind that, any further delay in the roll-out of this important function, leads to a lagging-behind of the Province, when compared to service standards and co- ordination, in other provinces.

The long-planned and awaited move, by the Provincial Head Office team, is set to occur, during 2014/15 financial year. The location is ideally suited, as it is close the SAPS provincial Head Office. The greater benefit, of this move, however, is that the provincial office teams will be based on one location. This will facilitate closer liaison and co-ordination of programmes.

92



2. Service rendered by the Department

The services of the Department of Transport, Safety and Liaison are organised in the following five programmes:

2.1.1 Programme 1: Administration

This programme conducts policy direction, overall management, financial and corporate support services and is sub-divided into the three sub-programmes outlined below.

Sub-Programme: Office of the MEC

Sub- Programme: Office of the HOD

Sub-Programme: Corporate

Sub-programme: Financial Services

Corporate Services is responsible for Human Resource Management and Development, Transport and Auxiliary Services, Legal Services and Legislative compliance as well as Security and Records Management.

Financial Management Services renders financial and management accounting services and functions that seeks to support and advise the line functions on financial administration and budget management in relation to amongst others supply chain, asset and revenue management services.

2.1.2 Programme 2: Civilian Secretariat

This programme is responsible to hold provincial law enforcement agencies accountable with regard to policing activities.

Sub-programme: Monitoring and Evaluation

Sub-programme: Policy and Research

Sub-programme: Regional Offices

2.1.3 Programme 3: Social Crime Prevention & Community Police Relations

This programme provides an integrated social crime prevention management framework to facilitate safer communities.

Sub-programme: Social Crime Prevention

Sub-programme: Community Policing Relations

93



2.1.4 Programme 4: Transport Operations The programme plans, regulates and facilitate the provisioning of public transport services through co-operation with national and local authorities, as well as the private sector in order to enhance the mobility of all communities particularly those currently without or with limited access.

Sub-programme: Programme Support

Sub-programme: Public Transport Services

Sub-programme: Operator License and Permits

Sub-programme: Transport Safety and Compliance

Sub-programme: Transport Systems

Sub-programme: Infrastructure Operations

2.1.5 Programme 5: Transport Regulations

This programme represents the line function of road traffic management and facilitates and promotes the efficient and safe mobility on roads in the Province, ensures a sound information base for traffic management and collection of revenue and implements measures to ensure road safety. The program is structured as follows:

Sub-programme: Office Support

Sub-programme: Law Enforcement

Sub-programme: Road Safety Education

Sub-programme: Transport Administration & Licensing

2.2 Tariff policy

The tariffs which the Department is dealing with are Traffic tariffs, as are dealt with on the e- Natis system, in accordance with the National Road Traffic Act, Act No. 93 of 1996.

These tariffs are adjusted annually. They include tariffs for revenue that shall be earned by the municipalities as a result of Service Level Agreements with Category B local authorities.

The department’s tariff list is overall the most economical in the country. The department is very wary of exacerbating the recessionary outlook of the country.

2.3 Free Services

The Department offers no free services.

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2.4 Inventories

None

3. Capacity constraints

While budgetary constraints may be at the core of most departmental challenges, there are other areas of improvement which may be attained without, necessarily, requiring the injection of additional funding. The following key strategic priorities have no budget allocation, and will depend on the envisaged country-wide funding for projects similar to those listed below.

Appointment of civilian personnel to handle the functions at Drivers’ Licences Testing Centres (DLTC’s);

The implementation of mobile electronic learners testing centres; Impoundment centres; Weigh-bridges.

Key Transport Infrastructure Projects:

a) Port Nolloth Harbour;

b) Upington Cargo Hub;

c) De Aar Warehouse;

d) Douglas – Belmont Rail Branch Line.

Functions and structures of the Department will be influenced by:

Planned establishment such as the Civilian Secretariat Act;

Stabilisation of the transferred function of Scholar Transport,

Appointment of civilian personnel to handle the functions at DLTC’s

The implementation of mobile electronic learners testing centres;

Impoundment centres for unroadworthy public transport vehicles that have been

impounded; 4. Utilisation of donor funds

None 5. Trading entities and public entities

None

95



6. Organisations to whom transfer payments have been made Service level agreements have been concluded with the relevant, contracted, service providers, with the aim to make public transport convenient, accessible and affordable.

The function is funded from a Public Transport Operations Grant (PTOG), with monthly financial performance reports being submitted, through Provincial Treasury and National Department of Transport.

In order to make sure that the function is optimally utilised, the service is planned around the allocated budget. This entails ascertaining the financial implications for each service provider, so that the resource envelope is not exceeded, and the cash flow soundly managed, especially as it is a conditional grant.

The Public Regulatory Entity (PRE) is appointed, through an Act of Parliament, by the Executive Authority of the Department, and is accountable, for the administration of departmental funds, to the Head of Department. The PRE is responsible for the adjudication of all public transport applications, e.g. buses and taxis.

Transfer payments were made in relation to the Memorandum of Agreement with the Northern Cape Taxi Council

The Taxi Council is tasked with ensuring standardisation of conduct, as well as to support the industry, in its quest for democratisation and transformation of services.

The Council has regular meetings with the Senior Manager: Transport Operations, where submissions are done, regarding cash-flow requirements of the Council.

Monthly compliance meetings are in place with the institutions to ensure that the funds are applied for the purpose for which it is transferred.

The Department transferred amounts to Bevlink (Pty) Ltd, trading as Phakalane Airways. The procured service is envisaged to provide intra-provincial flight services, and to make travelling, within the boundaries of the Province, more effective, and convenient. Key consideration, in arriving at the decision to launch the service, was the huge travelling distances involved, in the Province, e.g. travelling from Kimberley to Port Nolloth, involves a one-direction distance of over one thousand kilometres.

The current points being serviced are: Kimberley, Upington and Springbok. Further points for expansion of the service, are: Kuruman and De Aar. They will be brought into consideration, once the current service-points have taken root.

96



7. Corporate governance arrangements The Department has a formal risk management committee, with a risk charter and risk management policy. A risk management unit, in the Department, still has to be established. In the meantime, the function is managed under the Office of the Head of Department. Policies have been formulated and revised, as necessary, including asset management, supply chain management, etc. The policies are developed by the relevant programmes, and sent to the Policy Committee, for consideration, dissemination for input, from managers, and then finalised. The Department aims to attain a clean audit report, for the 2015/16 financial period of review. This confidence emanates from the fact that, at the last audit, 2012/13, there were only two (2) matters, which could have, potentially, caused a qualification: accruals and revenue management receivable. Both these matters have now been thoroughly addressed, and no queries have been raised by the Auditor General, to date. All previous controls have been strengthened, hence the confidence for improved audit outcomes. 8. Discontinued activities/activities to be discontinued None 9. New/proposed activities None 10. Asset management The asset register was completed, in time, for the second successive year. Greater controls have been instituted at district level, where risk of loss or damage, are greatest. Furthermore, there were disposals, during the financial year under review, where the obsolete assets were yielded to non-profit organisations, and removed from the Department’s asset register. 11. Inventories None

There were no major events which took place after the end of the financial year.

97



13. Information on predetermined objectives

The Department has a five-year Strategic Plan, whose tenure concludes with the 2018/19 electoral cycle. A three (3) year annual performance plan, with operational plan, further refine the strategic plan.

14. SCOPA resolutions

SCOPA Resolutions as were raised on , during the presentation of the Department’s 2012/13 Annual Report

No SCOPA Resolution Action taken by the Department to address resolution

SCOPA Resolution

Implemented Yes / No

1. Management should ensure

adequate review and

monitoring of compliance

with applicable laws and

regulations. Furthermore,

the following matters should

be addressed:

3 quotations should be sourced for transactions of value below R500 000. For transactions above value of R500 000 competitive bids must be invited before procuring goods and services.

Supply chain management

processes were streamlined;

All managers now provide their

needs to the SCM team, who follow

due process, in order to obtain the

best deal, in terms of “value for

money”, to the Department;

Irregular expenditure occurs only in

cases of emergency, or where

there is only one provider, for the

service;

Thus the resolution was

implemented and complied with.

Yes.

2. Contracts should be awarded to suppliers whose tax matters have been declared by the South African Revenue Services as required by Treasury Regulations 16A9(1)(d) and the Preferential Procurement Regulations

A compliance requirement is

obligatory, prior to the service

provider being chosen;

Thus all service providers, who are

eligible to pay tax, are required to

provide a copy of a current tax

compliance certificate.

Yes.

98



3. The irregular expenditure of R113 912 000

(2012: R19 897 000), that was incurred as disclosed in Note 25 of the financial statements, should be investigated and dealt with, in terms of Section 38 and Chapter 10 of the PFMA.

.

A system clean-up process was

embarked upon, and concluded, to

verify the distance and condition of

the various routes, utilised by

learner transport operators;

The project is now in phase 2,

where tender specifications are

being compiled, for the advertising

of the service;

Due to the extensiveness of the

service, the duly advertised and

awarded service, in full compliance

with SCM processes, is likely to be

finalised by January 1st, 2015;

No

4. Internal Control measures should be strengthened to ensure performance agreements are signed by senior managers within the required period

All senior managers have signed their

Performance Agreements (PAs) with

the Head of Department.

Yes

15. Prior modifications to audit reports

Not applicable

16. Exemptions and deviations received from the National Treasury

Taxation revenue Departments are exempt from recording an accrual for taxation revenue. The different categories of taxation revenue, as catered for in the Standard Chart of Accounts are:

� Casino taxes; � Horse racing taxes; � Liquor license taxes; and � Motor vehicle license taxes;

According to the MCS departments are not required to estimate the amount of taxation revenue due to government, but must include amounts already collected from agencies which are due to the department / relevant revenue fund.

99



17. Interim Financial Statements

The department compiled and submitted the interim financial statements to treasury on a quarterly basis.

The statements assisted the department to ensure that on compilation of annual financial statements all things are addressed quarterly before the end of financial year.

18. Other

None

19. Approval

The Annual Financial Statements set out on pages 106 to 168 have been approved by the Accounting Officer(s).


100


REPORT OF THE AUDITOR-GENERAL For the year ended 31 March 2014

REPORT OF THE AUDITOR-GENERAL TO THE NORTHERN CAPE PROVINCIAL LEGISLATURE ON VOTE NO. 3: DEPARTMENT OF TRANSPORT, SAFETY AND LIAISON

REPORT ON THE FINANCIAL STATEMENTS Introduction 1. I have audited the financial statements of the Department of Transport, Safety and

Liaison set out on pages 106 to 168 which comprise the appropriation statement, the statement of financial position as at 31 March 2014, the statement of financial performance, statement of changes in net assets and 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 and fair presentation of these

financial statements in accordance with the Modified Cash Standard 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, 2013 (Act No. 2 of 2013) (DoRA), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-General’s responsibility 3. My responsibility is to express an opinion on these financial statements based on my

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

4. An audit involves performing procedures to obtain audit evidence about the amounts and

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

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

basis for my audit opinion.

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Opinion6. In my opinion, the financial statements present fairly, in all material respects, the

financial position of the department as at 31 March 2014, and its financial performance and cash flows for the year then ended in accordance with the Modified Cash Standard prescribed by the National Treasury and the requirements of the PFMA and DoRA.

Emphasis of matters I draw attention to the matter below. My opinion is not modified in respect of this matter. Irregular expenditure 7. As disclosed in note 24 to the financial statements, the department incurred irregular

expenditure of R120 750 000 (2012: R112 924 000) as the expenditure incurred was in contravention of regulations relating to supply chain management.

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

Unaudited supplementary schedules 8. The supplementary information set out in annexures 1A to 9 does not form part of the

financial statements and is presented as additional information. I have not audited these schedules and, accordingly, I do not express an opinion thereon.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

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

Predetermined objectives

I performed procedures to obtain evidence about the usefulness and reliability of the reported performance information for the following selected programme presented in the annual performance report of the department for the year ended 31 March 2014:

Programme 4: Transport Operations on pages 39 to 44

10. I evaluated the reported performance information against the overall criteria of

usefulness and reliability.

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

102



12. I assessed the reliability of the reported performance information to determine whether it

was valid, accurate and complete.

13. The material findings in respect of the selected programme are as follows: Programme 4: Transport Operations

Usefulness of reported performance information

14. No reasons for variances between planned and actual achievements reported in the annual performance report were given for 47% of the targets not achieved, as required by the National Treasury’s Guide for the preparation of the annual report. This was due to a lack of review of the presentation of the annual performance report by management.

15. Performance indicators must be well defined by having clear data definitions so that data can be collected consistently and is easy to understand and use. A total of 45% of the indicators were not well defined.

This was because management did not adhere to the requirements of the FMPPI due to a lack of proper systems and processes and technical indicator descriptions.

Reliability of reported performance information

16. The FMPPI requires auditees to have appropriate systems to collect, collate, verify and store performance information to ensure valid, accurate and complete reporting of actual achievements against planned objectives, indicators and targets. The reported performance information was not valid, accurate and complete when compared to the source information or evidence provided. This was due to a lack of standard operating procedures and technical indicator descriptions for the accurate measurement, recording and monitoring of performance.

Additional matter

I draw attention to the following matters: Achievement of planned targets

17. Refer to the annual performance report on pages 39 to 44 for information on the achievement of planned targets for the year. This information should be considered in the context of the material findings on the usefulness and reliability of the reported performance information for the selected programmes reported in paragraphs 14 to 16 of this report.

Unaudited supplementary information

18. The supplementary information set out on pages 51 to 54 does not form part of the

annual performance report and is presented as additional information. I have not audited this and, accordingly, I do not report thereon.

103



Compliance with legislation

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

Annual financial statements, performance and annual reports 20. The financial statements submitted for auditing were not prepared in accordance with the

prescribed financial reporting framework and supported by full and proper records as required by section 40(1)(a) and (b) of the Public Finance Management Act. Material misstatements of disclosure items identified by the auditors in the submitted financial statements were subsequently corrected and the supporting records were provided subsequently, resulting in the financial statements receiving an unqualified audit opinion.

Procurement and contract management 21. Goods and services of a transaction value above R500 000 were procured without

inviting competitive bids, as required by Treasury Regulations 16A6.1.

22. Goods and services of a transaction value below R500 000 were procured without obtaining at least three quotations, as required by Treasury Regulations 16A6.

Expenditure management 23. Contractual obligations and money owed by the department were not settled within 30

days or an agreed period, as required by section 38(1)(f) of the Public Finance Management Act and Treasury Regulation 8.2.3.

24. Effective steps were not taken to prevent irregular expenditure, as required by section 38(1)(c)(ii) of the Public Finance Management Act and Treasury Regulation 9.1.1.

Transfer payments 25. Funds were transferred to entities without obtaining written assurance that the entity

implements effective, efficient and transparent financial management and internal control systems, as required by section 38(1)(j) of the Public Finance Management Act.

26. Appropriate measures were not maintained to ensure that transfers and subsidies to entities were applied for their intended purposes, as required by Treasury Regulation 8.4.1.

Internal control

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

Leadership

28. The accounting officer did not exercise adequate oversight responsibility over financial and performance reporting, compliance with laws and regulations, as well as internal control. The action plans compiled to address the previous year’s audit findings were not adequately monitored and reviewed to determine if the reported progress on the plans related was supported by credible information.

104



Financial and performance management

29. Adequate documentation supporting the reported performance information could not be provided for all reported indicators. The evidence provided for audit purposes were not clearly linked to the specific performance information reported in the annual performance report. This is as a result of a lack of adequate communication to ensure that all relevant levels of staff have a clear understanding of the supporting documentation which is required for the performance information reported.

30. The financial statements were subject to material corrections resulting from the audit.

Root causes of prior year audit findings were not sufficiently addressed in all instances. This is due to challenges in the implementation of the department’s action plan, as well as a lack of adequate review by the chief financial officer to ensure completeness and accuracy prior to submission of the financial statements.

31. The department did not adequately review and monitor compliance with applicable laws and regulations.

Kimberley

31 July 2014

DEPARTMENT OF TRANSPORT, SAFETY AND LIAISON VOTE 3

ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2014

105

ANNUAL FINANCIAL STATEMENTS

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pay

men

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166

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125

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(1 9

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48 6

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12 6

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1 25

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96

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1

252

55

Tota

l 65

580

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(204

) 65

376

65

376

-

100%

62

864

62

864


NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March 2014

121

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

Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-H) to the Annual Financial Statements.

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

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

3. Detail on payments for financial assets

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

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

4.1 Per programme Final

Appropriation Actual

Expenditure Variance

R’000 Variance as a

% of Final Appropriation

Crime Prevention and Police Relations

6 575 6 512 63 1%

Transport Operations 179 520 175 154 4 366 2%

4.2 Per economic classification

Current payments

Final Appropriation

R’000

Actual Expenditure

R’000

Variance

R’000

Variance as a % of Final

Appropriation R’000

Compensation of employees 103 857 103 857 0 0% Goods and services 161 285 156 856 4 429 3% Interest and rent on land Unauthorised expenditure approved

19 19 0 0%

Transfers and subsidies Public Corp & Private Enterprises

44 397 44 397

0

0% Gifts and donations 166 166 0 0% Departmental agencies and accounts Non-Profit Institutions

0

1 983

0

1 983

0

0

0%

0% Households 159 159 0 0%

Payments for capital assets Machinery and equipment

2 799 2 799

0

0%

Payments for financial assets

65 65

0

0%

Request for roll-over will be made for the Learner Transport and EPWP payments for March 2014.


NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March 2014

122

4.3 Per conditional grant Final Actual Variance Variance as a Appropriation Expenditure % of Final Appropriation R’000 R’000 R’000 R’000

Transport EPWP Incent GRN Prov-Soc 196 133 63 32% Public Transport Operations Grant 41 390 41 390 - 0%

123


STATEMENT OF FINANCIAL PERFORMANCE for the year ended 31 March 2014

REVENUE

Note 2013/14 2012/13

Annual appropriation 1 314 730 291 040 Departmental revenue 2 6 892 12 942

TOTAL REVENUE 321 622 303 982

EXPENDITURE

Current expenditure Compensation of employees 3 103 859 93 625 Goods and services 4 156 854 140 672 Interest and rent on land 5 19 - Total current expenditure 260 732 234 297

Transfers and subsidies Transfers and subsidies 7 46 705 43 406 Total transfers and subsidies 46 705 43 406

Expenditure for capital assets Tangible assets 8 2 799 4 204 Intangible assets 8 - 17 Total expenditure for capital assets 2 799 4 221

Payments for financial assets 6 65 139

TOTAL EXPENDITURE 310 301 282 063

SURPLUS/(DEFICIT) FOR THE YEAR 11 321 21 919

Reconciliation of Net Surplus/(Deficit) for the year Voted funds 4 429 8 977

Annual appropriation 4 366 8 701 Conditional grants 63 276

Departmental revenue and NRF Receipts 14 6 892 12 942 SURPLUS/(DEFICIT) FOR THE YEAR 11 321 21 919

124


Note 2013/14 2012/13 R'000 R'000

STATEMENT OF FINANCIAL POSITION

as at 31 March 2014 ASSETS

Current assets 12 083 26 316

Unauthorised expenditure 09 1 693 5 088 Cash and cash equivalents 10 8 076 20 825 Prepayments and advances 11 61 108 Receivables 12 2 253 295

TOTAL ASSETS 12 083 26 316

LIABILITIES

Current liabilities 12 083 26 316

Voted funds to be surrendered to the Revenue Fund Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund

13 4 429 9 072 14 5 641 16 738

Payables 15 2 013 506

TOTAL LIABILITIES 12 083 26 316

125


CASH FLOW STATEMENT

for the year ended 31 March 2014

CASH FLOWS FROM OPERATING ACTIVITIES

Note 2013/14 2012/13 R'000 R’000

Receipts 472 983 440 828

Annual appropriated funds received 1.1 314 730 291 040 Departmental revenue received 2 158 253 149 788

Net (increase)/decrease in working capital 2 991 (177) Surrendered to Revenue Fund (178 422) (140 420) Current payments (260 713) (234 202) Interest paid 5 (19) - Payments for financial assets (65) (139) Transfers and subsidies paid (46 705) (43 406) Net cash flow available from operating activities 16 (9 950) 22 484

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for capital assets Proceeds from sale of capital assets

8 (2 799) -

(4 221) 425

Net cash flows from investing activities (2 799) (3 796) Net increase/(decrease) in cash and cash equivalents

(12 749) 18 688

Cash and cash equivalents at beginning of period 20 825 2 137

Cash and cash equivalents at end of period 17 8 076 20 825

126

DEPARTMENT OF TRANSPORT, SAFETY AND LIAISON

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ACCOUNTING POLICIES for the year ended 31 March 2014

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

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

2 Going concern The financial statements have been prepared on a going concern basis.

3 Presentation currency Amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.

4 Rounding Unless otherwise stated financial figures have been rounded to the nearest one thousand Rand (R’000).

5 Foreign currency translation Cash flows arising from foreign currency transactions are translated into South African Rands using the exchange rates prevailing at the date of payment / receipt.

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

7 Revenue

7.1 Appropriated funds Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation). Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the statement of financial performance on the date the adjustments become effective.

The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognised as a payable / receivable in the statement of financial position.

127


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7.2 Departmental revenue

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

7.3 Accrued departmental revenue Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the financial statements when:

it is probable that the economic benefits or service potential associated with the transaction will flow to the department; and

the amount of revenue can be measured reliably. The accrued revenue is measured at the fair value of the consideration receivable. Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents. Department is exempt from recording an accrual for taxation revenue.

8 Expenditure

8.1 Compensation of employees

8.1.1 Salaries and wages Salaries and wages are recognised in the statement of financial performance on the date of payment.

8.1.2 Social contributions Social contributions made by the department in respect of current employees are recognised in the statement of financial performance on the date of payment. Social contributions made by the department in respect of ex-employees are classified as transfers to households in the statement of financial performance on the date of payment.

8.2 Other expenditure Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of financial performance on the date of payment. The expense is classified as a capital expense if the total consideration paid is more than the capitalisation threshold.

8.3 Accrued expenditure payable Accrued expenditure payable is recorded in the notes to the financial statements when the goods are received or, in the case of services, when they are rendered to the department. Accrued expenditure payable is measured at cost.

128


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8.4 Leases

8.4.1 Operating leases Operating lease payments made during the reporting period are recognised as current expenditure in the statement of financial performance on the date of payment. The operating lease commitments are recorded in the notes to the financial statements.

8.4.2 Finance leases Finance lease payments made during the reporting period are recognised as capital expenditure in the statement of financial performance on the date of payment. The finance lease commitments are recorded in the notes to the financial statements and are not apportioned between the capital and interest portions. Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of:

cost, being the fair value of the asset; or the sum of the minimum lease payments made, including any payments made to

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

9 Cash and cash equivalents Cash and cash equivalents are stated at cost in the statement of financial position. Bank overdrafts are shown separately on the face of the statement of financial position. For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.

10 Prepayments and advances Prepayments and advances are recognised in the statement of financial position when the department receives or disburses the cash. Prepayments and advances are initially and subsequently measured at cost.

11 Loans and receivables Loans and receivables are recognised in the statement of financial position at cost plus accrued interest, where interest is charged, less amounts already settled or written-off.

12 Investments Investments are recognised in the statement of financial position at cost.

13 Impairment of financial assets Where there is an indication of impairment of a financial asset, an estimation of the reduction in the recorded carrying value, to reflect the best estimate of the amount of the future economic benefits expected to be received from that asset, is recorded in the notes to the financial statements.

14 Payables Loans and receivables are recognised in the statement of financial position at cost.

129


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15 Capital Assets

15.1 Immovable capital assets Immovable capital assets are initially recorded in the notes to the financial statements at cost. Immovable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition. Where the cost of immovable capital assets cannot be determined accurately, the immovable capital assets are measured at R1 unless the fair value of the asset has been reliably estimated, in which case the fair value is used. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) are recorded at R1. Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment. Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the immovable asset is recorded by another department in which case the completed project costs are transferred to that department.

15.2 Movable capital assets Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition. Where the cost of movable capital assets cannot be determined accurately, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) are recorded at R1. Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment. Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the movable asset is recorded by another department/entity in which case the completed project costs are transferred to that department.

15.3 Intangible assets Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition. Internally generated intangible assets are recorded in the notes to the financial statements when the department commences the development phase of the project. Where the cost of intangible assets cannot be determined accurately, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) are recorded at R1. Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment. Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the intangible asset is recorded by another department/entity in which case the completed project costs are transferred to that department.

130


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16 Provisions and Contingents

16.1 Provisions Provisions are recorded in the notes to the financial statements when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation and a reliable estimate of the obligation can be made. The provision is measured as the best estimate of the funds required to settle the present obligation at the reporting date.

16.2 Contingent liabilities Contingent liabilities are recorded in the notes to the financial statements when there is a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department or when there is a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably

16.3 Contingent assets Contingent assets are recorded in the notes to the financial statements when a possible asset arises from past events, and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department

16.4 Commitments Commitments are recorded at cost in the notes to the financial statements when there is a contractual arrangement or an approval by management in a manner that raises a valid expectation that the department will discharge its responsibilities thereby incurring future expenditure that will result in the outflow of cash

17 Unauthorised expenditure Unauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either: approved by Parliament or the Provincial Legislature with funding and the related

funds are received; or approved by Parliament or the Provincial Legislature without funding and is written

off against the appropriation in the statement of financial performance; or transferred to receivables for recovery. Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure.

18 Fruitless and wasteful expenditure Fruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred. Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or transferred to receivables for recovery. Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.

131


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19 Irregular expenditure

Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the irregularity unless it is impracticable to determine, in which case reasons therefor are provided in the note. Irregular expenditure is removed from the note when it is either condoned by the relevant authority or transferred to receivables for recovery. Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.

20 Changes in accounting estimates There have been no changes in accounting estimates for the year under review.

21 Prior period errors Due to payments and corrective journals that was not journalised out of the Revenue fund prior to closure, the Revenue Accrual account was overstated with R1 302 000. Therefore payments and corrective journals was done out of the Revenue Accrual account after closure, but prior to the Revenue Accrual amount paid over to Treasury.

22 Non-adjusting events after the reporting date There have been no adjusting events after the reporting date for the year under review.

23 Agent-Principal arrangements The mandate of the Department is to collect motor vehicle licence tax on every motor vehicle that uses the public roads. The Department has entered into a service level agreement with the municipalities of the province to collect motor vehicle licences fees, on its behalf, take agreed commission and pay the remainder to the department.

132


VOTE 3

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014

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:

2013/14 2012/13

Final

Appropriation

Actual Funds

Received

Funds not requested/

not received

Appropriation received

R’000 R’000 R’000 R’000 Administration 52 169 52 169 - 48 081

Civilian Oversight

11 090 11 090 - 11 840

Crime Prevention and Police Relations

6 575 6 575 - 5 951


179 520 179 520 - 162 304

Transport 65 376 65 376 - 62 864 Regulations Total 314 730 314 730 - 291 040

1.2 Conditional grants

Note

2013/14 2012/13 R’000 R’000

Total grants received 33 41 586 40 561

133


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2. Departmental revenue

Note 2013/14 R’000

2012/13 R’000

Tax revenue 135 586 131 892 Sales of goods and services other than capital assets

2.1 17 123 15 493

Fines, penalties and forfeits 2.2 2 664 2 231 Sales of capital assets 2.3 425 Transactions in financial assets and liabilities 2.4 2 880 172 Total revenue collected 158 253 150 213 Less: Own revenue included in appropriation 14 151 361 137 271 Departmental revenue collected 6 892 12 942

The department over collected on revenue due to the new project on collection of old E-Natis debt and on municipalities that are paying their debt.

2.1 Sales of goods and services other than capital assets

Note 2013/14 2012/13 2 R’000 R’000

Sales of goods and services produced by the department

17 123 15 493

Administrative fees 17 123 15 493 Total 17 123 15 493

2.2 Fines, penalties and forfeits

Note 2013/14 2012/13

2 R’000 R’000 Fines 2 532 2 231 Forfeits 132 - Total 2 664 2 231

2.3 Sale of capital assets

Note 2013/14 2012/13

2 R’000 R’000 Tangible assets 425 Machinery and equipment 30 - 425

Total - 425

2.4 Transactions in financial assets and liabilities

Note 2013/14 2012/13

2 R’000 R’000 Receivables 7 172 Other Receipts including Recoverable Revenue 2 873 - Total 2 880 172

134


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Transactions in Financial Assets and Liabilities: During the year E-Natis clean-up was performed with a debt collection process The total of R2 873 000 was collected for accrued revenue.

3. Compensation of employees

3.1 Salaries and Wages

Note 2013/14 2012/13

R’000 R’000 Basic salary 70 979 62 289 Performance award 689 843 Service Based 5 770 4 984 Compensative/circumstantial 3 624 5 862 Periodic payments 64 34 Other non-pensionable allowances 8 046 6 193 Total 89 172 80 205

3.2 Social contributions

Employer contributions

Note 2013/14 2012/13 R’000 R’000

Pension 9 163 8 123 Medical 5 503 5 279 Bargaining council 21 18 Total 14 687 13 420

Total compensation of employees 103 859 93 625

Average number of employees 363 367

135


VOTE 3


4. Goods and services

Note

2013/14

2012/13

Administrative fees R’000

721 R’000

633 Advertising 738 593 Capital assets less than R5 000 4.1 234 243 Bursaries (employees) 393 576 Catering 1 228 951 Communication 789 1 448 Computer services 4.2 1 470 1 325 Consultants, contractors and agency/outsourced

services Entertainment

4.3 118 768

-

103 477

58 Audit cost – external 4.4 3 485 3 797 Fleet services 96 - Inventory 4.5 19 7 583 Consumables 4.6 6 785 - Operating leases 7 724 8 496 Property payments 4.7 1 643 1 233 Transport provided as part of the departmental

activities Travel and subsistence

4.8

-

9 168

8

7 754 Venues and facilities 1 596 317 Training and development 212 354 Other operating expenditure 4.9 1 785 1 826 Total 156 854 140 672

1) Please note that all inventory are now being disclosed as consumables,

2) From 2013/14 financial year the inventory will be limited to those departments called inventory departments that must have inventory to deliver on their mandate,

3) The only inventory left is the Ammunition bought for the Traffic Officers (R19 000)

4) The department had a big function in October 2013 for Transport month, were the venues and facilities were used, that relates to high increase in the items for 2013/14 financial year.

136


VOTE 3


4.5.1. 19 3 362 19 7 583

4.1 Capital assets less than R5 000

Note 2013/14 2012/13

4 R’000 R’000 Tangible assets 151 110

Machinery and equipment 151 110 Intangible assets 83 133 Total 234 243

4.2 Computer services

Note 2013/14 2012/13

4 R’000 R’000 SITA computer services 667 639 External computer service providers 803 686 Total 1 470 1 325

4.3 Consultants, contractors and agency/outsourced services

Note 2013/14 2012/13 4 R’000 R’000

Business and advisory services 6 906 4 840 Legal costs 35 - Contractors 109 228 - Agency and support/outsourced services 2 599 98 637 Total 118 768 103 477

Contractors: An amount of R109 228 000 has been correctly classified under Contractors in respect of Learner Transport.

4.4 Audit cost – External

Note 2013/14 2012/13

4 R’000 R’000 Regularity audits 3 485 3 797 Total 3 485 3 797

4.5 Inventory

Note 2013/14 2012/13

4 R’000 R’000 Food and food supplies - 103 Fuel, oil and gas - 3 811 Materials and supplies - 307 Other supplies Total

137


VOTE 3


4.5.1 Other supplies

Note 2013/14 2012/13 4.5 R’000 R’000

Ammunition and security supplies 19 9 Other - 3 353 Total 19 3 362

Note that all inventory are now being disclosed as consumables The inventory: Ammunition has been disclosed under Inventory: other supplies (R19 000)

From 2013/14 financial year the inventory will be limited to those departments called inventory departments that must have inventory to deliver on their mandate.

4.6 Consumables

Note 2013/14 2012/13

4 R’000 R’000 Consumable supplies 4 409 -

Uniform and clothing 93 - Household supplies 291 - IT consumables 47 - Other consumables 3 978 -

Stationery, printing and office supplies 2 376 - Total 6 785 -

Note that the prior year inventory items has been reclassified to consumables

4.7 Property payments

Note 2013/14 2012/13

4 R’000 R’000 Municipal services 1 416 812 Other 227 421 Total 1 643 1 233

Other: An amount of R227 000 relates to cleaning services.

4.8 Travel and subsistence

Note 2013/14 2012/13

4 R’000 R’000 Local 9 136 7 700 Foreign 32 54 Total 9 168 7 754

138


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4.9 Other operating expenditure

Resettlement costs Learnerships

Note 2013/14 2012/13

4 R’000 R’000 3 12 - 167

Other 1 782 1 647 Total 1 785 1 826

5. Interest and rent on land

Note 2013/14 2012/13

R’000 R’000 Interest paid 19 - Total 19 -

6. Payments for financial assets

Note 2013/14 2012/13

R’000 R’000 Debts written off 6.1 65 139 Total 65 139

6.1 Debts written off

Nature of debts written off Other debt written off

Note 2013/14 2012/13

6 R’000 R’000

Employee Debt - 139 SANDF 65 - Total 65 139

Total debt written off 65 139

An amount of R65 000 was written off. This debt was raised when our Traffic Officers assisted SANDF in a defence operation.

This debt was raised 5 years ago. All reasonable steps were taken to recover the debt. A write- off recommendation letter was submitted to the Accounting Officer for his approval, as despite the best recovery effort the debt cannot be recovered.

Quarterly letters was send to SANDF and to date we have not receive any

139


VOTE 3


7. Transfers and subsidies

Note

2013/14 2012/13 R’000 R’000

Public corporations and private enterprises Annex 1A 44 397 40 285 Non-profit institutions Annex 1B 1 983 2 645 Households Annex 1C 157 181 Gifts, donations and sponsorships made Annex 1E 168 295 Total 46 705 43 406

Unspent funds transferred to the above beneficiaries - 276

8. Expenditure for capital assets Note 2013/14 2012/13

R’000 R’000 Tangible assets 2 799 4 204

Machinery and equipment 29 2 799 4 204

Intangible assets - 17 Software 30 - 17

Total 2 799 4 221

8.1 Analysis of funds utilised to acquire capital assets – 2013/14

Voted funds Total R’000 R’000

Tangible assets Machinery and equipment 2 799 2 799

TOTAL 2 799 2 799

8.2 Analysis of funds utilised to acquire capital assets – 2012/13

Voted funds Total

R’000 R’000 Tangible assets 4 204 4 204

Machinery and equipment 4 204 4 204 Intangible assets 17 17

Software 17 17 Total 4 221 4 221


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140

8.3 Finance lease expenditure included in Expenditure for capital assets

Note 2013/14 R’000

Tangible assets 2 538 Machinery and equipment 2 538

Total 2 538

9. Unauthorised expenditure

9.1 Reconciliation of unauthorised expenditure

Note 2013/14 2012/13

R’000 R’000 Opening balance 5 088 4 993 Prior year error - - As restated 5 088 4 993 Unauthorised expenditure – discovered in current year (as restated) Less: Amounts approved by Parliament/Legislature with funding Unauthorised expenditure awaiting authorisation / written off Analysis of awaiting authorisation per economic classification

- 95

(3 395)

1 693 5 088

Current 1 693 5 088 Total 1 693 5 088

9.2 Analysis of unauthorised expenditure awaiting authorisation per economic

classification

2013/14 2012/13 R’000 R’000

Current 1 693 5 088 Total 1 693 5 088

9.3 Analysis of unauthorised expenditure awaiting authorisation per type

2013/14 2012/13 R’000 R’000

Total 1 693 5 088

Unauthorised expenditure relating to overspending of

the vote or a main division within a vote 1 598 4 993

Not accordance with the purpose of the Vote 95 95


VOTE 3


141

10. Cash and cash equivalents

Note 2013/14 2012/13

R’000 R’000 Consolidated Paymaster General Account 8 076 20 825 Total 8 076 20 825

11. Prepayments and advances

Note 2013/14 2012/13

R’000 R’000 Travel and subsistence 56 103 Prepayments 5 5 Total 61 108

12. Receivables

2013/14 2012/13

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 12.1 Annex 3

1 963 1 963 65

Staff debt 12.2 155 61 74 290 221 Other debtors 12.3 9 Total 2 118 61 74 2 253 295

12.1 Claims recoverable

Note 2013/14 2012/13 12 R’000 R’000

National departments - 65 Provincial departments 1 944 - Private enterprises 19 - Total 1 963 65

In preparation of the crime prevention strategy launch of the Province in September 2013, there was an EXCO resolution that other Departments should give assistance by contributing. The total contribution from other departments amount to R532 000.00 Department of Education owes the Department R1 305 million and Department of Environmental Affairs owes an amount of R106 665.18.


VOTE 3


142

12.2 Staff debt

Note 2013/14 2012/13 12 R’000 R’000

Tax debt 20 - Salary debt 270 221 Total 290 221

12.3 Other debtors

Note 2013/14 2012/13 12 R’000 R’000

Dishonoured cheques - 9 Total - 9

13. Voted funds to be surrendered to the Revenue Fund Note 2013/14 2012/13

R’000 R’000 Opening balance 9 072 3 129 Prior period error - - As restated 9 072 3 129 Transfer from statement of financial performance (as restated)

4 429 8 977

Add: Unauthorised expenditure for current year 9 - 95 Paid during the year (9 072) (3 129) Closing balance 4 429 9 072

14. Departmental revenue and NRF Receipts to be surrendered to the Revenue

Fund Note 2013/14 2012/13

R’000 R’000 Opening balance 16 738 5 118 Prior period error (2012/13) 14.1 - (1 302) As restated 16 738 3 816 Transfer from Statement of Financial Performance (as restated)

6 892 12 942

Own revenue included in appropriation 151 361 137 271 Paid during the year (169 350) (137 291) Closing balance 5 641 16 738


VOTE 3


143

14.1 Prior period error (affecting Departmental revenue to be surrendered)

Note 2012/13 14 R’000

Nature of prior period error Relating to 2012/13

(1 302)

Total (1 302)

Due to payments and corrective journals that were but not journalised out of the Revenue Fund prior to closure, the Revenue Accrual account was overstated. Therefore payments and corrective journals were done out of the Revenue Accrual account after closure, but prior to the Revenue Accrual amount paid over to Treasury.

15. Payables – current Note 2013/14 2012/13

R’000 R’000

Amounts owing to other entities

Annexure 4 1 918 - Clearing accounts 15.1 24 17 Other payables 15.2 71 489 Total 2 013 506

Refer to Annexure 4 for amounts owing to other entities.

15.1 Clearing accounts

Note 2013/14 2012/13 15 R’000 R’000

Debt receivable income Salary Income Tax

17 7

17 -

Total 24 17 15.2 Other payables

Description Debt payable to COGHSTA Abnormal Loads Prepayments

Note 2013/14 2012/13 15 R’000 R’000

- 111

71 - Economic Development - 2 Department of Health - 376 Total 71 489


VOTE 3


144

Note 2013/14 2012/13 R’000 R’000

8 076 20 825 8 076 20 825

16. Net cash flow available from operating activities

Note 2013/14 2012/13 R’000 R’000

Net surplus/(deficit) as per Statement of Financial Performance Add back non cash/cash movements not deemed operating activities

11 321 21 919 (21 271) 565

(Increase)/decrease in receivables – current (1 958) 506 (Increase)/decrease in prepayments and advances 47 (75) (Increase)/decrease in other current assets 3 395 - Increase/(decrease) in payables – current 1 507 (513) Proceeds from sale of capital assets - (425) Expenditure on capital assets 2 799 4 221 Surrenders to Revenue Fund (178 422) (140 420) Own revenue included in appropriation 151 361 137 271 Net cash flow generated by operating activities (9 950) 22 484

17. Reconciliation of cash and cash equivalents for cash flow purposes

Consolidated Paymaster General account Total

18. Contingent liabilities and contingent assets

18.1 Contingent liabilities

Liable to Nature

Note 2013/14 2012/13

R’000 R’000

Claims against the department Annex 2 725 3 611 Intergovernmental payables (unconfirmed balances)

Annex 4 526 737

Total 1 251 4 348

Claims against the State: 1) Pemberley Investments (Fleet): The initial amount of R2 977 321 was reduced after

each Department was allocated its proportional share of the liability. A 30% probability exist that the Department will have to pay R245 000.

2) The claim will only be settled when the court decides that the department is liable or department accepts the liability, both of which are unknown.

3) Alleged unfair discrimination: A 50% probability that the Department must bear the burden (R200 000).

4) Review of arbitration: A 50% probability that the Department must bear the burden (R275 000).


VOTE 3


145

19. Commitments

Current expenditure

Note 2013/14 2012/13

R’000 R’000

Approved and contracted 115 948 12 449 Approved but not yet contracted

Capital expenditure

115 948 12 449

Approved and contracted 21 631 79 488 Approved but not yet contracted

21 631 79 488 Total Commitments 137 579 91 937

Commitments that are longer than a year are as follows: Security Services amounting to R1 632 626.02, Van Wyk's Coaches amounting to R9 650 000.00, Rainbow Coaches amounting to R3 053 485.20, Carstens Coaches amounting to R3 476 084.40

20. Accruals

Listed by economic classification

2013/14 2012/13 R’000 R’000

30 Days 30+ Days Total Total

Goods and services 206 20 108 20 314 14 078 Capital assets 36 36 174 Other 261 10 271 - Total 467 20 154 20 621 14 252

Note 2013/14 2012/13 R’000 R’000

Listed by programme level Administration 3 816 3 127 Civilian Oversight 31 18 Crime Prevention and Police Relations 212 82 Transport Operations 15 559 9 606 Transport Regulations 1 003 1 419 Total 20 621 14 252


VOTE 3


146

Note 2013/14 2012/13 R’000 R’000

Confirmed balances with other departments Annex 4 279 488 Confirmed balances with other government entities

Annex 4 1 640 -

Total 1 919 488

Include reasons for material accruals

Administration:

Invoices for services that was rendered in the previous financial year that was not paid/received at the end of financial year, Primo Properties amounting to R410 863, Prosecurus Insurance for vehicles amounting to R983 985.70, Auditor General amounting to R341 756.38, Wesbank for fuel amounting to R278 029.86 and Green Willows for rental amounting to R519 124.66

Transport Operations:

Learner Transport invoices amounting to R10 563 036.39

Bevlink amounting to R3 085 298.51

Phakamile Engineering amounting to R1 132 681.79. 21. Employee benefits

Note 2013/14 2012/13

R’000 R’000 Leave entitlement 5 504 3 443 Service bonus (Thirteenth cheque) 3 241 2 961 Performance awards 800 843 Capped leave commitments 5 051 4 521 Total 14 596 11 768

Leave entitlement: Officials did not take all their leave due to the leave cycle only ending June 2014. Capped Leave entitlement increased as the entitled officials are not using their leave and they are increasing yearly.


VOTE 3


147

22. Lease commitments

22.1 Operating leases expenditure

2013/14

Buildings and other

fixed structures

Machinery

and equipment Total

Not later than 1 year 6 563 805 7 368 Later than 1 year and not later than 5 years

39 941 329 40 270

Later than five years 46 863 - 46 863 Total lease commitments 93 367 1 134 94 501

2012/13

Buildings and other

fixed structures

Machinery

and equipment Total

Not later than 1 year 3 549 1 194 4 743 Later than 1 year and not later than 5 years

38 240 543 38 783

Later than five years 54 951 - 54 951 Total lease commitments 96 740 1 737 98 477

The Ocean Echo contract is having the material leasing arrangement with escalation of 8% annually, monthly instalments amounting to R 531 233.10 with lease arrangement of ten years.

Buildings and other fixed structures: Alnam Properties amounts to R570 209.50 Ocean Echo amounts to R86 804 000.00 Prestige Hardware amounting to R208 391.28

Machinery and equipment: Nugen amounts to R453 820.14 Photocopier Machines amounting to R572 526.06


VOTE 3


148

22.2 Finance leases expenditure**

2013/14

Buildings and other

fixed structures

Machinery

and equipment Total

Not later than 1 year - 1 646 1 646 Later than 1 year and not later than 5 years Total lease commitments

- 1 322 1 322

- 2 968 2 968

2012/13

Buildings and other

fixed structures

Machinery

and equipment Total

Not later than 1 year - 1 892 1 892 Later than 1 year and not later than 5 years Total lease commitments

- 2 814 2 814

- 4 706 4 706

23. Accrued departmental revenue

Note 2013/14 2012/13

R’000 R’000 Tax revenue 38 327 130 115 Fines, penalties and forfeits 93 333 Total 38 420 130 448

23.1 Analysis of accrued departmental revenue

Note 2013/14 2012/13

R’000 R’000

Opening balance 20 726 116 248 Less: amounts received 20 812 41 273 Add: amounts recognised 38 506 55 473 Closing balance 38 420 130 448

Note that the closing balance of 2012/13 differs from the opening balance of 2013/14 due to:

Department records and discloses accruals in respect of departmental revenue (excluding taxation revenue)

Departments are exempt from recording an accrual for taxation revenue.

According to MCS, Departments are not required to estimate the amount of taxation revenue due to government, but must include amounts already collected which are due to the department. Refer to MCS standards, General Departmental Assets and Liabilities page 10.


VOTE 3


149

23.2 Impairment of accrued departmental revenue 2013/14 2012/13

R’000 R’000

Estimate of impairment of accrued departmental revenue - 98 749

Total - 98 749 24. Irregular expenditure

24.1 Reconciliation of irregular expenditure

Note 2013/14 2012/13

R’000 R’000 Opening balance 113 912 19 897 Add: Irregular expenditure – relating to prior year Add: Irregular expenditure – relating to current year 120 750 112 924 Less: Prior year amounts condoned (112 924) (18 909) Less: Current year amounts condoned (1 726) - Irregular expenditure awaiting condonation 120 012 113 912

Analysis of awaiting condonation per age classification Current year 119 024 112 924 Prior years 988 988 Total 120 012 113 912

The irregular expenditure to the amount of R120 750 000.00 were incurred for the year under review. This is mainly due to the learner transport service providers.

Sizwe Ntsaluba Gobodo audit firm was appointed to do the audit on the learner transport payments, verification and costing of routes, specification for the tender and compilation of contract. The tender will be advertised in June 2014 in order to regularise the learner transport services.


VOTE 3


150

24.2 Details of irregular expenditure – current year

Incident Disciplinary steps taken/criminal

proceedings 2013/14 R’000

Patty’s Catering and Cleaning Services Ha Re Etse Mosadi – Hygienic Services

Month to Month untill occupation of Ocean Echo Building Month to Month until occupation of Ocean Echo Building

187

30

Steiner Hygiene Month to Month until occupation of Ocean Echo Building

Office leases in Kimberley Month to Month until occupation of Ocean Echo Building

Learner Transport Services Anticipating to advertise services as from June 2014

Travel agency: World Wide Department appointed Kator agency to render this services as from January 2014

Travel agency: Rennies Department appointed Kator agency to render this services as from January 2014

Travel agency: Kator Department appointed Kator agency to render this services as from January 2014

8

5 254 109 036

102

180

546

Kgomogwe Security Services In process of finalising the bid 418 Paledi Consultants None 700 Mieta Sepherehere Convention Centre Labour saving devices: Minolta, Nashua, Gestetner Mokgoka’s Graphic Design – Business cards Radio Riverside – Budget speech

None 1 034 None 105 None 7 None 85

Ha Re Etse Mosadi – Catering None 1 Goods and Services: Suppliers None 52 River City Inn None 5 Bevlink Aviation PTY None 3 000 Total 120 750


VOTE 3


151

24.3 Details of irregular expenditure condoned

Incident Condoned by (condoning authority) 2013/14 R’000

Patty’s Catering and Cleaning Condoned by Accounting Officer 187 Services Ha Re Etse Mosadi – Hygienic Condoned by Accounting Officer 30 Services Steiner Hygiene Condoned by Accounting Officer 8 Travel agency: World Wide Condoned by Accounting Officer 102 Travel agency: Rennies Condoned by Accounting Officer 180 Travel agency: Kator Condoned by Accounting Officer 546 Kgomogwe Security Services Condoned by Accounting Officer 418 Labour saving devices: Minolta, Condoned by Accounting Officer 105 Nashua, Gestetner Mokgoka’s Graphic Design – Condoned by Accounting Officer 7 Business cards Radio Riverside – Budget speech Condoned by Accounting Officer 85 Ha Re Etse Mosadi – Catering Condoned by Accounting Officer 1 Goods and Services: Suppliers Condoned by Accounting Officer 52 River City Inn Condoned by Accounting Officer 5 Total 1 726

25. Fruitless and wasteful expenditure

25.1 Reconciliation of fruitless and wasteful expenditure

Note 2013/14 2012/13

R’000 R’000 Opening balance 14 49 Fruitless and wasteful expenditure – relating to current year

19 14

Less: Amounts resolved (14) (49) Fruitless and wasteful expenditure awaiting resolution

19 14

25.2 Analysis of awaiting resolution per economic classification

2013/14 2012/13 R’000 R’000

Current 19 14 Total 19 14


VOTE 3


152

25.3 Analysis of Current year’s fruitless and wasteful expenditure

Incident Disciplinary steps taken/criminal proceedings

2013/14 R’000

Late payments of Municipalities – Interest Late payments to suppliers - Interest

None 11 None 8

Total 19

26. Related party transactions

Payments made Note 2013/14 2012/13

R’000 R’000 Purchases of capital assets - 1 171 Transfers - 2 645 Total - 3 816

Year end balances arising from revenue/payments

Note 2013/14 2012/13 R’000 R’000

Receivables from related parties 1 944 - Payables to related parties 279 - Total 2 223 -

27. Key management personnel

No. of

Individuals

2013/14 2012/13 R’000 R’000

Political office bearers (provide detail below) 2 1 779 1 894

Officials: Level 15 to 16 1 1 401 1

291 Level 14 (incl. CFO if at a lower level) 8 7 367 6

622 Family members of key management personnel

1 235 -

Total 12 10 782 9 807


VOTE 3


153

28. Provisions

NICS: The agreed commission in the SLA between the Department and NICS, is 15 %, plus VAT. Therefore, on the amounts collected, the Department provided an amount of R464 721.78 as provision on the payment of the services that was provided

Note 2013/14 2012/13 R’000 R’000

465 -

Total 465 - 29. Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Opening balance

Curr Year Adjust-

ments to prior year balances

Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT

23 863 2 799 305 26 357

Transport assets 15 971 1 534 242 17 263 Computer equipment 1 849 192 37 2 004 Furniture and office equipment 772 68 26 814 Other machinery and equipment 5 271 1 005 - 6 276 TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 23 863 2 799 305 26 357


VOTE 3


154

29.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

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


260 2 539 2 799

Transport assets - 1 534 1 534 Computer equipment 192 192 Furniture and office equipment Other machinery and equipment TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS

68 68

- 1 005 1 005 260 2 539 2 799

29.2 Disposals

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Transfer out or

destroyed or

scrapped

Total disposals

R’000 R’000

MACHINERY AND EQUIPMENT 305 305 Transport assets 242 242 Computer equipment 37 37 Furniture and office equipment 26 26 TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS

305 305


VOTE 3


155

29.3 Movement for 2012/13

Opening balance

Additions Disposals Closing

Balance R’000 R’000 R’000 R’000


22 202 4 204 2 543 23 863

Transport assets 15 238 2 919 2 186 15 971 Computer equipment 1 898 296 345 1 849 Furniture and office equipment 764 14 6 772 Other machinery and equipment 4 302 975 6 5 271

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

22 202 4 204 2 543 23 863

29.4 Minor assets

Intangible

assets Machinery

and equipment

Total

R’000 R’000 R’000

Opening balance 751 2 923 3 674 Additions 83 151 234 Disposals 102 92 194 TOTAL MINOR ASSETS

732 2 982 3 714

Intangible

assets Machinery

and equipment

Total

Number of R1 minor assets Number of minor assets at cost

TOTAL NUMBER OF MINOR ASSETS

28 457 485 261 3 269 3 530 289 3 726 4 015


VOTE 3


156

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2013

Intangible

assets Machinery

and equipment

Total

R’000 R’000 R’000

Opening balance 717 2 857 3 574 Additions 132 110 242 Disposals 98 44 142 TOTAL MINOR ASSETS 751 2 923 3 674

30. Intangible Capital Assets

Opening balance

Closing Balance

R’000 R’000

SOFTWARE 273 273 TOTAL INTANGIBLE CAPITAL ASSETS 273 273

30.1 Movement for 2012/13

Opening balance

Additions Closing

Balance R’000 R’000 R’000

SOFTWARE 256 17 273

TOTAL INTANGIBLE CAPITAL ASSETS 256 17 273

31. Agent-principal arrangements

Department acting as the principal

The mandate of the Department is to collect motor vehicle licence tax on every motor vehicle that uses the public roads.

The Department has entered into a service level agreement with the municipalities of the Province to collect motor vehicle licences fees, on its behalf, take agreed commission and pay the remainder to the department.

The following municipalities are collecting motor vehicle licence tax on our behalf:

Khara hais, Dikgatlong, Emthanjeni, Gamagara, Ga-segonyana, Hantam, Ka!garib, Kamiesberg, Kareeberg, Karoo Hoogland, Kgatelopele, Khaima, Keis Magareng, Motibistad, Nama Khoi, Phokwane, Renosterberg, Richtersveld, Siyancuma, Siyathemba, Sol Plaatje, Thembelihle, Tsantsabane, Ubuntu and Umsobumvu


VOTE 3


157

32. Prior period errors

32.1 Correction of prior period error for secondary information

Note 2013/14 2012/13 R’000 R’000

Departmental revenue and NRF Receipts to be surrendered to Revenue Fund

- (1 302)

Net effect on the note - (1 302)

Opening balance was restated due to payments and corrective journals that were not journalised out of the Revenue fund prior to closure. Therefore the Revenue Accrual account was overstated. The corrective journals and payments was done out of the Revenue Accrual account after closure, but prior to the Revenue Accrual amount paid over to Treasury

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AFET

Y A

ND

LIA

ISO

N

VO

TE 3

AN

NE

XU

RES

TO

TH

E A

NN

UA

L FI

NAN

CIA

L ST

ATE

MEN

TS

for t

he y

ear e

nded

31

Mar

ch 2

014

165

Nat

ure

of L

iabi

lity

O

peni

ng

Bal

ance

1 A

pril

2014

R

’000

Li

abili

ties

incu

rred

du

ring

the

year

R

’000

Liab

ilitie

s pa

id/c

ance

lle

d/re

duce

d du

ring

the

year

R

’000

Liab

ilitie

s re

cove

rabl

e (P

rovi

de

deta

ils

here

unde

r)

R’0

00

Clo

sing

B

alan

ce

31 M

arch

20

14

R’0

00

165

A

NN

EXU

RE

2 ST

ATE

MEN

T O

F C

ON

TIN

GEN

T LI

AB

ILIT

IES

AS

AT

31 M

AR

CH

201

4

Cla

ims

agai

nst t

he d

epar

tmen

t A

llege

d un

fair

disc

rimin

atio

n

20

0

-

-

-

200

Alle

ged

non-

com

plia

nce

with

con

tract

2

997

- 2

743

- 25

4 U

nlaw

ful a

rrest

50

-

50

- -

Rev

iew

of a

rbitr

atio

n aw

ard

271

- -

271

Def

amat

ion

75

- 75

-

- C

ontra

ct d

ispu

te

18

85

103

- -

TOTA

L 3

611

85

2 97

1 -

725

DE

PAR

TMEN

T O

F TR

ANS

POR

T, S

AFET

Y A

ND

LIA

ISO

N

VO

TE 3

AN

NE

XU

RES

TO

TH

E A

NN

UA

L FI

NAN

CIA

L ST

ATE

MEN

TS

for t

he y

ear e

nded

31

Mar

ch 2

014

16

6

Gov

ernm

ent E

ntity

Con

firm

ed b

alan

ce

outs

tand

ing

Unc

onfir

med

bal

ance

ou

tsta

ndin

g To

tal

31/0

3/20

14

31/0

3/20

13

31/0

3/20

14

31/0

3/20

13

31/0

3/20

14

31/0

3/20

13

R’0

00

R’0

00

R’0

00

R’0

00

R’0

00

R’0

00

166

AN

NEX

UR

E 3

CLA

IMES

REC

OVE

RA

BLE

Dep

artm

ent

SAN

DF

-

65

-

-

-

65

S

ocia

l Ser

vice

s -

- -

1 -

1 R

oads

and

Pub

lic W

orks

76

-

- 55

6 76

55

6 E

duca

tion

-

1 30

8 -

1 30

8 -

Env

ironm

ent a

nd N

atur

e C

onse

rvat

ion

183

-

- 18

3 -

Agric

ultu

re

76

- -

- 76

-

CO

GH

STA

76

- -

- 76

-

Hea

lth

-

75

- 75

-

Trea

sury

- 75

-

75

- S

ports

, Arts

and

Cul

ture

- 75

-

75

41

1 65

1

533

557

1 94

4 62

2 O

ther

Gov

ernm

ent E

ntiti

es

TO

TAL

411

65

1 53

3 55

7 1

944

622

GOVERNMENT ENTITY

Confirmed balance outstanding

Unconfirmed balance outstanding TOTAL

31/03/2014 31/03/2013 31/03/2014 31/03/2013 31/03/2014 31/03/2013 R’000 R’000 R’000 R’000 R’000 R’000


VOTE 3

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014

ANNEXURE 4 INTER-GOVERNMENT PAYABLES

DEPARTMENTS Current

Public Works

13

- - 737

13

737 COCHSTA - 111 - - - 111 Department of Health - 377 - - - 377 Economic Affairs 266 - - - 266 - Premier’s Office - - 313 - 313 - National Department of Justice

213 213

Subtotal 279 488 526 737 805 1 225

OTHER GOVERNMENT ENTITY Current

Road Traffic Management Corporation

1 640 - - - 1 640

Subtotal 1 640 1 640 Total 1 919 488 526 737 2 445 1 225

167

168

Inve

ntor

y N

ote

Qua

ntity

20

13/1

4 Q

uant

ity

2012

/13

R’0

00

R

’000

168

DE

PAR

TMEN

T O

F TR

ANS

POR

T, S

AFET

Y A

ND

LIA

ISO

N

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TE 3

AN

NE

XU

RES

TO

TH

E A

NN

UA

L FI

NAN

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ATE

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TS

for t

he y

ear e

nded

31

Mar

ch 2

014

AN

NEX

UR

E 5

INVE

NTO

RY

Ope

ning

bal

ance

-

- 42

6

10

A

dd/(L

ess)

: Adj

ustm

ents

to p

rior y

ear b

alan

ce

- -

2 03

6 21

2 A

dd:

Add

ition

s/Pu

rcha

ses

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h -

- -

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dd:

Add

ition

s - N

on-c

ash

- -

- -

(Les

s): D

ispo

sals

-

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- (L

ess)

: Iss

ues

- -

- -

Add

/(Les

s): A

djus

tmen

ts

- -

(2 4

62)

(222

)

- -

C

losi

ng b

alan

ce

- -

- -

Documents

NORTHERN CAPE ANNUAL REPORT 2013 / 2014 - South Africa · 2015-06-26 · ANNUAL REPORT 2013 / 2014 transport, safety & liaison Department: Transport, Safety & Liaison NORTHERN CAPE