VOTE NO. 11 ANNUAL REPORT 2015/2016 FINANCIAL YEAR · Annual&Report&for&2015/16&Financial&Year&...

Annual&Report&for&2015/16&Financial&Year&Vote&11:&Department&of&CoGHSTA&

Province&of&Limpopo&!

!!

!- 1 -&

VOTE NO. 11

ANNUAL REPORT

2015/2016 FINANCIAL YEAR



!!

!- 2 -&

Table of contents

PART A: GENERAL INFORMATION!....................................................................................................!4!1.! DEPARTMENT GENERAL INFORMATION!..................................................................................!5!2.! LIST OF ABBREVIATIONS/ACRONYMS!.....................................................................................!6!FOREWORD BY THE MINISTER/MEC!................................................................................................!8!3.! REPORT OF THE ACCOUNTING OFFICER!...............................................................................!11!4.! STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT!...............................................................................................................................!16!5.! STRATEGIC OVERVIEW!.............................................................................................................!17!

5.1 Vision!.................................................................................................................................!17!5.2 Mission!...............................................................................................................................!17!5.3 Values!................................................................................................................................!17!

6.! LEGISLATIVE AND OTHER MANDATES!...................................................................................!18!7.! ORGANISATIONAL STRUCTURE!...............................................................................................!19!PART B: PERFORMANCE INFORMATION!........................................................................................!20!1.! AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES!........................................!21!2.! OVERVIEW OF DEPARTMENTAL PERFORMANCE!..................................................................!21!2.1! Service Delivery Environment!.................................................................................................!21!2.2! Service Delivery Improvement Plan!.......................................................................................!23!2.3! Organisational environment!....................................................................................................!24!2.4! Key policy developments and legislative changes!...............................................................!24!3.! STRATEGIC OUTCOME ORIENTED GOALS!.............................................................................!24!4.! PERFORMANCE INFORMATION BY PROGRAMME!.................................................................!27!4.1! Programme 1: Administration!................................................................................................!27!4.2! Programme 2: Human Settlements!.......................................................................................!32!4.3! Programme 3: Cooperative Governance!...............................................................................!40!

4.4 Programme 4: Traditional Affairs!..................................................................................!48!5.! TRANSFER PAYMENTS!...............................................................................................................!50!6.! CONDITIONAL GRANTS!............................................................................................................!51!



!!

!- 3 -&

7.! DONOR FUNDS!...........................................................................................................................!52!8.! CAPITAL INVESTMENT!..............................................................................................................!53!PART C: GOVERNANCE!.....................................................................................................................!54!1.! INTRODUCTION!.........................................................................................................................!55!2.! RISK MANAGEMENT!...................................................................................................................!55!3.! FRAUD AND CORRUPTION!.......................................................................................................!55!4.! MINIMISING CONFLICT OF INTEREST!...................................................................................!56!5.! CODE OF CONDUCT!...................................................................................................................!56!6.! HEALTH SAFETY AND ENVIRONMENTAL ISSUES!.................................................................!56!7.! PORTFOLIO COMMITTEES!........................................................................................................!57!8.! SCOPA RESOLUTIONS!...............................................................................................................!59!9.! PRIOR MODIFICATIONS TO AUDIT REPORTS!.......................................................................!72!10.! INTERNAL CONTROL UNIT!.....................................................................................................!72!11.! INTERNAL AUDIT AND AUDIT COMMITTEES!......................................................................!73!12.! AUDIT COMMITTEE REPORT!..................................................................................................!77!

PART D: HUMAN RESOURCES MANAGEMENT!...............................................................................!81!INTRODUCTION!.................................................................................................................................!82!1.! OVERVIEW OF HUMAN RESOURCES!.......................................................................................!82!2.! HUMAN RESOURCES OVERSIGHT STATISTICS!.....................................................................!82!

PART E: FINANCIAL INFORMATION!.............................................................................................!118!

REPORT OF THE AUDITOR GENERAL!...........................................................................................!119!ANNUAL FINANCIAL STATEMENTS!...............................................................................................!125!

!



!!

!- 4 -&

!

PART A: GENERAL INFORMATION



!!

!- 5 -&

1. DEPARTMENT GENERAL INFORMATION

PHYSICAL ADDRESS: 20 Rabe Street

Polokwane

0699

POSTAL ADDRESS: Private Bag X9485

Polokwane

0700

TELEPHONE NUMBER/S: +27 15 284 5000

FAX NUMBER: +27 15 293 1520

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS : www.coghsta.limpopo.gov.za



!!

!- 6 -&

2. LIST OF ABBREVIATIONS/ACRONYMS

AFS Annual Financial Statements

AGSA Auditor General of South Africa

BBBEE Broad Based Black Economic Empowerment

CDP Community Development Programme

CDW Community Development Worker

CFO Chief Financial Officer

CoGHSTA Cooperative Governance Human Settlements and Traditional Affairs

CRU Community Residential Units

DDG Deputy Director General

DORA Division of Revenue Act

EAP Employee Assistance Programme

EU European Union

EXCO Executive Council

FLISP Financed-Linked Individual Subsidy Programme

FY Financial Year

GITO Government Information Technology Office

HDA Housing Development Agency

HOD Head of Department

HSDG Human Settlements Development Grant

HSS Housing Subsidy System

IDP Integrated Development Plan

IGR Intergovernmental Relations

ISHS Integrated Sustainable Human Settlements

LED Local Economic Development

LUMS Land Use Management Scheme

MEC Member of the Executive Council



!!

!- 7 -&

MIG Municipal Infrastructure Grant

MPAC Municipal Public Accounts Committee

MTEF Medium Term Expenditure Framework

NDoHS National Department of Human Settlements

NHFC National Housing Finance Corporation

NUSP National Upgrading Support Programme

PFMA Public Finance Management Act

PGP Provincial Growth Points

PMU Project Management Unit

POA Programme of Action

SISP Strategic Information Systems Plan

SDF Spatial Development Framework

SCM Supply Chain Management

SMME Small Medium and Micro Enterprises

SAIGA Southern African Institute of Government Auditors

SCOPA Standing Committee on Public Accounts

SDIP Service Delivery Improvement Plan

SIU Special Investigations Unit

SITA State Information Technology Agency

SLA Service Level Agreement

TR Treasury Regulations

USDG Urban Settlement Development Grant

CWP Community Works Programme

WSP Workplace Skills Plan



!!

!- 8 -&

FOREWORD BY THE MINISTER/MEC

Ms. MG Makhurupetje Member of the Executive Committee

It is once again my pleasure to present to the people of Limpopo Province, the Department of Cooperative Governance, Human Settlements and Traditional Affairs’ Annual Report, which is the representation of the work we have done in fulfilling the commitments we made. The forward march of taking our province’s socio economic development to new heights continues without hindrances. Working together with our people we have recorded many successes in providing a better life for all. It is against this backdrop that we call on our people to never tire in our collective journey of sustaining the

positive advances recorded in the short space of our freedom. Human Settlements Human Settlements Programme is an axle upon which the department rotates. It is through this programme that the department plays a crucial role in restoring the long lost dignity to the people of Limpopo. We once again make an honest acknowledgement that building quality houses is not an event, but a never ending process dictated to by the ever growing population and rapid urban migration.

The Department is on the upward spiral in the acceleration of housing delivery. The Department has performed beyond its set target of 8565 by building 8631 housing units across the province. Once again we are of the view that more houses are still needed to ensure the total eradication of housing poverty from the face of our province. Our partnership with the private sector continues to bear fruits. Through the Memorandum of Understanding we signed with the SABC, we have delivered modern houses to destitute families in the province. We have also brought on board the private sector to assist in this regard through the “Each one Settle one Programme”. These partnerships have collectively delivered quality houses to destitute families who today have a decent place to call home. This is what we call a partnership that works for real development of our rural areas.

Cooperative Governance



!!

!- 9 -&

Our commitment to assisting municipalities in Limpopo remains the same. We will stop at nothing until all municipalities are fully functional. Through the Back to Basics programme more work is being done to ensure that the local governance sphere is strategically positioned to where it needs to be. The Premier Intergovernmental Forum remains a critical vehicle for assisting municipalities to change for the better. We are proud that our interventions are bearing fruit with some municipalities showing improvements in audit outcomes. We are also impressed that our municipalities have shown improvement in the spending of Municipal Infrastructure Grants. We also assist municipalities with regard to recruitment, appointment and retention of critical section 54A and 56 Managers posts in line with the municipal systems act regulations. We have developed guidelines and supported the establishment of MPAC’s across the province. Currently 100% of these MPAC’s are in place. We continue to monitor on a regular basis other governance structures such as Audit Committees and Internal Audit Units. Traditional Affairs We are encouraged by the work that is being done in support of the institution of Traditional leadership which remains an important organ of our democracy. In our endeavour to modernise the institution of Traditional leadership, the department procured 178. A Budget of R5 million for 2016/17 financial year to each of the two kings in our province has been allocated

with the aim of assisting the establishment of both VhaVenda and Bapedi Kingdoms. We have inaugurated a total of seven traditional leaders, mostly young and energetic whom we expect a lot from them in the discharge of their mandate to the people of the province. Sadly we lost 10 Traditional leaders who left us unexpectedly. The Kgatla Commission on Disputes has so far managed to resolve more than 293 disputes, of which 236 have been determined by the Premier and 170 communicated. We are hopeful that the extended period of the Commission will afford Commissioners the space and time to complete the remaining 255 cases. Furthermore, we have tabled the Limpopo Initiation School Bill and referred it to the Portfolio Committee. This Bill seeks to restore and sustain the dignity attached to initiation custom, but also seeks to regulate initiation school customs and traditions in Limpopo. It repeals the Limpopo Province Circumcision Schools Act, 1996 (Act 6 of 1996). Financial Management The Department of Cooperative Governance, Human Settlements and Traditional Affairs continue to take the lead in the management of its financial resources. Our commitment to the people of Limpopo remains the same as it was when the ANC led government took office in 1994. Our resources both human and capital remain committed to the better life for all our people. We call on everyone to join us in



!!

!- 10 -&

putting shoulders to the wheel in order to move Limpopo forward. I, Makoma Grace Makhurupetje, Member of the Executive Council for the Department of Cooperative Governance, Human Settlements and Traditional Affairs, hereby presents the 2015/16 Annual Report to the people of Limpopo

_________________________ Ms. MG Makhurupetje MEC: Co-operative Governance, Human Settlements and Traditional Affairs Date: 31 July 2016



!!

!- 11 -&

3. REPORT OF THE ACCOUNTING OFFICER

Mr. M.G. Makoko

Acting Head of Department

Overview of the operations of the department:!

The 2015/16 Annual Report presents the performance of the Department in its efforts to fulfil its constitutional mandate and its vision for integrated, sustainable human settlements in line with outcome 8, 9 and 12. The department has recorded significant progress on improving financial management in municipalities through continuous capacitation initiatives as well as monitoring and evaluation of this important sphere of government.

In support to initiatives of job opportunities created, the province has received additional funding from CoGTA on CWP, which provided about 23 000 job opportunities to participants.

The institutions of Traditional Leadership have been supported through coordination of stakeholders to participate in the initiation schools management. Additional compensation for Traditional Leaders has been streamlined with the pronouncement made by the President.

Human settlements sector has had its fair share of challenges for the past two financial years. However the department has turnaround the situation to ensure that services are delivered to the people of Limpopo as expected.

The system of governance and accountability has matured in the department, which is congruent to the expectations by the public at large. This is credited to the management team of the department as well as oversight institutions who quality check the departments’ obligations initiatives regularly.



!!

- 12 -&

Overview of the financial results of the department: Departmental receipts

Departmental receipts

2015/2016 2014/2015

Estimate Actual Amount Collected

(Over)/Under Collection

Estimate

Actual Amount Collected

(Over)/Under Collection

R’000 R’000 R’000 R’000 R’000 R’000

Sale of goods and services other than capital assets

1,317 1,637 (320) 1,274 1,273 1

Transfers received 0 15,709 (15,709)

Interest, dividends and rent on land

2,446 15,998 (13,552) 129 93 36

Sale of capital assets 395 638 (243) 268 268 -

Financial transactions in assets and liabilities

1,444 2,005 (561) 1,254 1,501 (247)

Total 5,602 35,987 (30,385) 2,925 3,135 (210)

The department has collected R35.99 million (2014/15: R3.135 million) which is 500% more than planned. The better than anticipated performance is mainly due to money received from Polokwane Housing Agency that was surrendered in the current financial year i.r.o unspent funds on projects. Revenue Tariff policy The department has implemented transversal tariffs as determined and approved by the Provincial Treasury during the year under review. Free service rendered There were no free services rendered by the department that would have yielded significant revenue had a tariff been charged. Irrecoverable debts written off A total amount R2.2 million was written off as irrecoverable debts in terms of the transversal debt management policy approved by the Provincial Treasury. No new measures were instituted during the course of the year to raise additional revenue. However, transversal revenue management policy was implemented to ensure more efficient/effective collection. Redundant and unusable capital assets amounting to R637 000 were sold during the year under review. Programme Expenditure



!!

- 13 -&

The department spent R2.180 billion (2014/15: R1.525 billion of R1,776 billion) of the total allocation of R2.690 (2015/16) billion which represents 81.0% (2014/15: 85.9%). The spending trend at programme level has been depicted in the table above. The expenditure R2.180 billion includes R19 million which was defrayed from prepayments made to ESKOM in prior years. The underspending is mainly in Human Settlements and Traditional Institutional programmes. The main reason for underspending is due to late appointment of service providers for low cost housing projects, delayed procurement processes of setup cost for Kingship projects as well as appointment of Traditional Leaders. The underspending in Human Settlements program is committed to the existing housing projects and an application for roll-over has been submitted to Provincial Treasury. The department has developed a database for contractors to prevent recurrence of late appointment of contractors in future years.

Programme Name

2015/2016 2014/2015

Final Appropriation

Actual Expenditure

(Over)/ Under Expenditure

Final Appropriation

Actual Expenditure

(Over)/Under Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Administration 305,395 299,584 5,809 276,838 274,729 2,109

Human Settlements

1,699,428 1,228,845 470,583 923,829 676,932 246,897

Co-Operative Governance

242,942 240,738 2,204 232,805 232,313 492

Traditional Institutional Development

441,851 411,339 30,512 342,044 341,498 546

Total 2,689,614 2,180,506 509,108 1,775,516 1,525,470 250,046



!!

- 14 -&

Virements/roll overs

Virements were effected between programmes as depicted in the table below.

Reason for the virement: The virements were effected for the defrayment of outstanding legal fees as well as to address unforeseen payments on leave gratuity. Savings realised were also utilised to write off irrecoverable debts. Unauthorised, fruitless and wasteful expenditure The Department did not incur any unauthorised expenditure during the year under review as disclosed in the Annual Financial Statements. An amount of R1 760 000 was incurred in fruitless expenditure as disclosed in the Annual Financial Statements.

Future plans of the department Regular monitoring of service providers to ensure compliance with the service contracts with the department. Public Private Partnerships The department has not entered into any Public, Private Partnership in the previous financial year as well as during the year under review. Supply chain management No procurement was done through unsolicited bid proposals during the year under review.

Programme Name

2015/2016

Adjusted Appropriation

Virements Final Appropriation

Actual Expenditure

Available Budget

R’000 R’000 R’000 R’000

Administration 304 036 1 357 305 395 298 933 6 462

Human Settlements 1 699 343 85 1 699 428 1 228 594 470 834

Co-operative Governance 243 027 (85) 242 942 239 714 3 526

Traditional Institutional Development 443 208 (1 357) 441 851 411 432 30 199

Total 2 689 614 - 2 689 614 2 178 672 250 046



!!

- 15 -&

The SCM processes and systems are in place to prevent irregular expenditure and there is strict adherence to legislation and policies.

The major challenge experienced in SCM was late procurement of low cost houses.

Gifts and Donations received in kind from non-related parties The Department received gifts and donations from non-related parties to the value of R24 000 as disclosed in the Annual Financial Statements. Exemptions and deviations received from the National Treasury No exemptions and deviations were received from National Treasury Events after the reporting date

There were no events (adjusting and non-adjusting), favourable and unfavourable that occurred after the reporting date and the date of approval of the Annual Financial Statements.

Other No other material fact or circumstances, which may have an effect on the understanding of the financial state of affairs of the department.

_________________ Makoko M.G. Accounting Officer Department of Co-operative Governance, Human Settlements and Traditional Affairs Date: 31 May 2016



!!

- 16 -&

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

To the best of my knowledge and belief, I confirm the following: All information and amounts disclosed throughout the annual report are consistent. The annual report is complete, accurate and is free from any omissions. The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury. The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks and guidelines issued by the National Treasury. The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information. The Accounting Officer is responsible for establishing, and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements. The external auditors are engaged to express an independent opinion on the annual financial statements. In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the department for the financial year ended 31 March 2016. Yours faithfully ___________________________ Accounting Officer Name: Makoko M.G. Date: 31 May 2016

!

!



!!

- 17 -&

5. STRATEGIC OVERVIEW

5.1 Vision

Integrated Sustainable Human Settlements

5.2 Mission

To be effective agent of change that delivers quality services to citizens of Limpopo

through:

i. Promoting developmental cooperative governance,

ii. Supporting municipalities and traditional leadership institutions, and

iii. Optimally deliver integrated and sustainable human settlements

5.3 Values

Our values are underpinned by the Batho Pele Principles.

• Service Excellence:

We shall strive to attain recognized standards of service quality, and maintain continuous improvement in service delivery. • Innovation:

We shall toil in the pursuit of excellence and innovation on the use of information and communication technology to enhance public service delivery. • Integrity:

We shall conduct our business with integrity at all times to inculcate a culture of honesty and accountability among all our employees. • Prudence:

We shall exercise prudence and economy in running the business of the Department and in pursuance of its goals and the objectives of government. • Transparency:

We shall always ensure transparency in everything we do in order to build trust and confidence with all our stakeholders. • Fairness and consistency:



!!

- 18 -&

We shall treat all our beneficiaries, suppliers and employees with fairness and equity at all times.

• Professionalism

We shall ensure that employees demonstrate high level of professionalism when interacting with all stakeholders.

6. LEGISLATIVE AND OTHER MANDATES

Constitutional Mandates Section of the Constitution

Direct responsibility in ensuring compliance

Chapter 2, section 26

This section puts direct responsibility on the Department in ensuring that everyone has access to adequate housing, which is carried out through the ISHS programme

Chapter 7, section 154

The section directs the Provincial Government to support and strengthen the capacity of municipalities to manage their own affairs, to exercise their powers and to perform their functions.

Legislative Mandates Relevant Act Key Responsibilities A. The Public Service

Act of 1994 as amended and regulations

To provide for the organization and administration of the public service of the Republic, the regulation of the conditions of employment, terms of office, discipline, retirement and discharge of members of the public service.

B. The Public Finance Management Act 1 of 1999 (as amended) and Regulations

To regulate financial management in the national government and provincial government, to ensure all revenue, expenditure , assets and liabilities of those governments are managed efficiently

C. The Housing Act of 1997

To promote and facilitate the provision of adequate housing within the framework of national housing policy.

D. The Local Government Municipal Structures Act of 1998

The MEC for local government in a Province, by notice in the Provincial Gazette must establish a municipality in each municipal area which the Demarcation Board demarcates in the Province in terms of the Demarcation Act.

E. The Local Government Municipal Systems Act of 2000

The MEC for local government in the Province may, subject to any other law regulating provincial supervision of local government – assist a municipality with the planning, drafting, and adoption of mid review of its 5 year integrated development plan.

F. The Disaster Management Act 2002

To provide for an integrated and coordinated disaster management policy that focuses on preventing or reducing the risk and mitigating the severity of disasters, emergency preparedness, rapid



!!

- 19 -&

and effective response to disasters and post-disaster recovery; the establishment of national, provincial and municipal disaster management centres, disaster management volunteers, and matters incidental thereto.

G. Spatial Planning and Land Use Management Act of 2013

To provide a framework for spatial planning and land use management in the Republic; to specify the relationship between the spatial planning and the land use management system and other kinds of planning; to provide for the inclusive, developmental, equitable and efficient spatial planning at the different spheres of government.

H. Traditional Leadership and Governance Framework Act 41 of 2003

To provide for the recognition of traditional communities; to provide for the establishment and recognition of traditional councils; to provide a statutory framework for leadership positions within the institution of traditional leadership.

!

7. ORGANISATIONAL STRUCTURE

!



!!

- 20 -&

PART B: PERFORMANCE INFORMATION



!!

- 21 -&

1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES

Refer to part E

2. OVERVIEW OF DEPARTMENTAL PERFORMANCE

2.1 Service Delivery Environment The department is charged with the responsibility of ensuring that citizens are sheltered, municipalities are able to provide services in accordance with their constitutional mandate, promote co-operative governance and providing support to traditional leadership and their communities. 2.1.1 Human settlements Ensuring citizens have access to appropriate shelter lays the foundation for long term and sustainable socio-economic development. As a sector there are vast issues from the economy that can affect the delivery of services. The years 2013 and 2014 have been rather challenging for the Department. In an effort to address the challenges experienced in the previous two financial years, department has acquired requisite capacity in its Human Settlements division both in the funded structure whereby the ISHS DDG and the Project Management Unit has been appointed. Delivery on housing units has moved from 2 065 units which is 20% in 2014/15 FY to 8,588 units in 2015/16 FY which translate to 87% of the total committed target for 2015/16. The department has successfully implemented the following projects towards achieving Integrated Human Settlements with socio-economic opportunities:

• Seshego Community Residential Units (CRU) in Polokwane has officially been handed over to deserving residents and is benefitting 756 beneficiaries - with stalls to support small businesses.

• Marapong CRU in Lephalale municipality, the contractor for project has been appointed during the last quarter of the year and expected to be completed in 2018. The project will yield 514 family units that are set to benefit 1 540 beneficiaries and small businesses.

• Acquired 133 hectares at Greater Tubatse and Tzaneen Municipalities as part of the provincial Growth Point programme in order to enhance provision of services in these areas for economic development.

• A total of 19 units are completed in Bendor Ext.100 in Polokwane and will be ready to be occupied by end June.

• 1 091 sites have been provided with water, sewage and roads at Phagameng (Modimolle) extensions 8 and 11, Vaalwater extension 3 (Modimolle); Polokwane extension 106; Tshikota (Makhado) and Nancefield extension 7 (Musina)

• The database for Military Veterans has been finalized after thorough negotiations with the Department of Military Veterans (DMV) and the South African Military Veterans Associations (SAMVA). Contractors have



!!

- 22 -&

been appointed to construct 200 sixty square metre houses for Military Veterans

2.1.2 Co-operative Governance The 2015/16 financial year is the last year of the current Local Government. The Minister of CoGTA and the Municipal Demarcation Board (MDB) introduced a process of reconfiguration of municipalities in order to achieve viable and sustainable municipalities in the country. The process of reconfiguration of municipalities in the province has resulted in 5 districts unchanged and local municipalities reducing from 25 to 22 and wards increasing from 543 to 566. The department has already gazetted in terms of Municipal Structures Act a notice in accordance with section 14(5) which outlines the process of transitional matters and committee’s structure compositions National Treasury has made available an amount of R409 million for the demarcation/transition processes over the next two financial years (2016/2017 and 2017/2018). The amount will be shared nationally for all municipalities’ affected by the process. The purpose of the grant is to subsidise the additional institutional and administrative costs arising from major boundary changes.

The department continues in supporting municipalities with regard to recruitment, appointment and retention of critical section 54A and 56 manager posts in line with the Municipal Systems Act regulations. Guidelines have been developed to support the establishment of MPAC’s across the province. Currently 100% of these MPACs are in place and monitored on a regular basis including Audit Committees and Internal Audit Units. The department has been supporting Thabazimbi local municipality which experienced several challenges in the past two years. As part of support measures to the municipality an Administrator was appointed for Thabazimbi Municipality following EXCO decision to place the municipality under section 139 (1) (b). This measure is envisaged to turn around finances and restore good corporate governance. Municipal Infrastructure Grant (MIG), is the largest share of transfers to municipalities aimed at supporting government’s objective of expanding service delivery and alleviating poverty. In the province, municipalities were allocated R3.161 billion for 2015/2016 financial year, as at end of March 2016, R1.540 billion out of R3.161billion was spent. Preparations for municipalities to implement Spatial Planning and Land Use Management Act (SPLUMA) is at an advance stage. In the main municipalities are finalizing by-laws and appointment of tribunal members as required by the Act 2.1.3 Traditional Leadership Institutions Traditional Leaders continue to play an important role in the development of communities. The department has processed the outstanding arrear payments of Headmen/Headwomen, adjusted their salaries and simultaneously exploring all the available avenues to ensure that all challenges regarding tools of trade are



!!

- 23 -&

addressed. As a result 178 vehicles were purchased during the year under review to enable Traditional Leaders to fulfill their community engagements role. The province is inundated with teething problems of Traditional Leadership claims and disputes, hence the Kgatla Commission was established to adjudicate over these disputes. The Commission has to date received 548 cases since its establishment in 2012, to date a total of 293 cases finalised. Management of initiation school process continue to be of high quality in the province, mainly due to improved relations among the stakeholders in preserving this culture and accountability.

2.2 Service Delivery Improvement Plan

Main services and standards

Main services Beneficiaries Current/actual standard of service

Desired standard of service

Actual achievement

Number sites demarcated

Municipalities 5 000 5 000 0

Number of housing stock/RDP rectified

RDP house dwellers

60 500 0

Number of rental units built

Hostel dwellers 0 250 0

Batho Pele arrangements with beneficiaries (Consultation access etc.)

Current/actual arrangements

Desired arrangements Actual achievements

Community participation meetings

4 imbizos 4 imbizos

Service delivery information tool

Current/actual information tools

Desired information tools Actual achievements

CoGHSTA news, brochures Print media, Electronic media

445 copies of publications distributed such as statement of public commitment, posters, newsletters, departmental corporate documents etc.

Complaints mechanism

Current/actual complaints mechanism

Desired complaints mechanism

Actual achievements

100% Queries and Cases resolved qqqqQQofcomplaints and

complaints

walk

100% Queries and Cases resolved qqqqQQofcomplaints and

complaints

walk

99.5% resolved !



!!

- 24 -&

2.3 Organisational environment

The department has reviewed Human Resources Management Plan and Employment Equity Plan. Workforce equity, females represents approximately 52% of the staff compliment. The organisational climate survey was conducted during the year under review and measures to improve on findings have been developed.

The vacancy rate of the department as at end of March 2016 was at 11%. The table below reflects that 84% of the allotted post of SMS have been filled, which contributes positively to organisational stability.

SMS Level Total number of funded SMS posts

Total number of SMS posts filled

% of SMS posts filled

Total number of SMS posts vacant

% of SMS posts vacant

Director-General/ Head of Department

0 0 0 0 0

Salary Level 16 1 1 100 0 0


Salary Level 14 16 14 88 2 12

Salary Level 13 40 35 88 5 12

Total 63 53 84 10 16

2.4 Key policy developments and legislative changes

None

3. STRATEGIC OUTCOME ORIENTED GOALS

The Department has considered the strategic direction of the Human Settlements, Co-operative Governance and Traditional Affairs sectors to align and contribute to national imperatives. Furthermore, the strategic intent of the Department was reviewed during 2013/14 in preparation for the new electoral cycle which has commenced during the year under review. These goals have taken into account the socio-economic environment of the Province.



!!

- 25 -&

Goal Goal Statement Outputs Progress

1. A professional public service that is proactive, responsive and geared towards the realisation of a developmental state

To ensure continuous professional support and an enabling environment for efficient and effective service delivery

1.1 Efficient business processes and back office systems

• 73% (56 of 77) of organisational targets achieved.

• 216 vacant posts filled within the establishment

• 53% of employees received performance rewards

• Queries lodged through Departmental, Premier and Presidential hotlines have been resolved significantly

1.2 Financial management support and advisory services for effective accountability

• Achieved unqualified audit outcome with matters of emphasis for 2014/15 financial year

• Voted budget expenditure is at 81%

• All undisputed invoices paid within 30 days as per standard

2. Integrated human settlements with socio-economic opportunities

Eradicate informal settlements and facilitate equitable access to adequate housing in an integrated and sustainable manner.

2.1 Planned Human Settlements Development

• Multi-Year Housing Development Plan reviewed in accordance with the new priorities of the MTSF

• 22 000 sites identified for development

• 133 hectares of land acquired in Greater Tzaneen Municipality-Hamawasha and Greater Tubatse Municipality- Mooifontein.

• 4 informal settlements in mining towns of Fetakgomo, Greater Tubatse, Lephalale and Elias Motsoaledi municipalities have been identified for formalisation to enable implementation of various projects of human settlements.

• In addition Elias Motsoaledi and



!!

- 26 -&

Goal Goal Statement Outputs Progress

Greater Tubatse municipalities have been supported through NUSP

2.2 Housing backlog reduced by 80,000 units through implementation of different housing programmes by 2019

• 10 756 houses completed in the Province

• 18 691 subsidies approved for qualifying beneficiaries

• 1 437 sites connected to basic service

2.3 Security of tenure promoted through effecting transfer of 3,500 housing properties annually to qualifying beneficiaries

• 2 475 housing properties transferred to beneficiaries

• 3 properties devolved to municipalities in terms of the Housing Act

3. Sustainable Cooperative Governance system

• Monitor and play oversight role in all municipalities in order to improve performance and good governance

• Co-ordinate and provide support to Traditional Leadership Institutions in order to enhance Local Governance.

3.1 Strengthened institutional capacity of all municipalities by monitoring compliance with local government legislation annually

• Municipal IDP’s assessed annually

• Intervened in Ba-Phalaborwa and Thabazimbi municipalities to ensure compliance with legislation

• Monitored and supported municipalities with MIG compliance and implementation

• Supported municipalities to improve financial management and accountability

• Continued implementation of Traditional Affairs Framework



!!

- 27 -&

4. PERFORMANCE INFORMATION BY PROGRAMME

4.1 Programme 1: Administration

Purpose: To provide effective leadership, management and administrative support to core functions of the Department. This is ensured through continuous refinement of corporate policies, skills development, efficient and effective financial management, structures and systems in compliance with legislation and best practice and championing Batho Pele principles and service delivery.

Sub-programmes

• Administration Strategic objectives

• Financial management support and advisory services for effective accountability

• Efficient business processes and back office systems

Strategic objectives, performance indicators, planned targets and actual achievements

To ensure efficiency and promote accountability the department has developed and/or reviewed the following policies:

• Leave of Absent Policy Management • Career Management and Retention Policy • Record Management Policy • Contract Management Policy • HIV & AIDS Policy • Occupational Health and Safety Policy

During the year under review training needs were identified and workplace skills plan developed in order to address skills gaps. A total of 1298 training sessions were facilitated for employees. The internship and learnership programmes were also implemented. The department achieved unqualified audit outcome for the 2014/15 financial year and budget management has improve significantly with most of the programmes spending above 90% of their allocation.



!!

- 28 -&

Strategic objectives:

Programme 1: Administration Strategic objectives

Actual Achievement 2014/2015

Planned Target 2015/2016


Deviation from planned target

to Actual Achievement

for 2015/2016

Comment on

deviations

1. Efficient business processes and back office systems

99% 100% of resolved queries logged through the departmental toll free, Premier and Presidential hotline

99% -1% Unavailability/traceability of complainants for follow-up queries

2. Financial management support and advisory services for effective accountability

100% Process 100% of completed claims/voucher within 30 days

100% of claims/vouchers processed with 30 days

None None

Note: In the column “Deviation from planned target to actual achievement for 2015/16” (-) reflects underachievement from the planned target while (+) indicates overachievement Performance indicators

Programme 1: Administration Strategic objective : Efficient business processes and back office systems Performance Indicator


Planned Target

2015/2016


Deviation from planned target to

Actual Achievement for

2015/2016

Comment on deviations

1. Number of posts filled

69 posts filled 106 147 41 Additional EPWP posts filled

2. Number of training sessions conducted as per statutory requirement WSP

1 858 1 300 1 298 -2 Suitable service providers not found

3. Percentage of women represented

55% Women 50% 55% of total staff complement is women

5% More competent women employed

4. Percentage of persons with disability represented

0,67% people with disability

2% 0.71% -1,29% Persons with disability not meeting minimum requirements



!!

- 29 -&

Programme 1: Administration Strategic objective : Efficient business processes and back office systems Performance Indicator


Planned Target

2015/2016


Deviation from planned target to

Actual Achievement for

2015/2016


5. Percentage of targets met

67% 100% 72% -28% Underperformance in programme 1 and 2

6. Percentage of resolved queries logged through the Departmental toll free, Premier and Presidential hotlines

100% 100% 99% -1% Unavailability/traceability of complainants for follow-up queries

7. Percentage of anti-fraud and corruption cases reported and investigated

100% 100% 88% -12% Witnesses not cooperative during investigation

Programme 1: Administration Strategic objective: Financial management support and advisory services for effective accountability Performance Indicator


Planned Target

2015/2016




for 2015/2016


8. Percentage of undisputed invoices paid within 30 days

100% Process 100% of completed claims/vouchers within 30 days

100% None None

9. Type of audit opinion

Achieved unqualified opinion with matters of emphasis

Achieve unqualified opinion without matters of emphasis



Material adjustment of AFS

10. Percentage of allocated budget spent

82% Spend 100% of allocated budget

81% -19% Significant underspending on transfers and subsidies as well as payment of capital assets



!!

- 30 -&

Note: In the column “Deviation from planned target to actual achievement for 2015/16” (-) reflects underachievement from the planned target while (+) indicates overachievement

Reasons for all deviations

• Recruitment of designated equity groups still a challenge • Under expenditure of grants impacting negatively on programmes performance • Unavailability/traceability of complainants for follow-up queries

Strategy to overcome areas of under performance

• Implementation of employment equity strategy through targeted recruitment for

designated equity groups. • Turnaround strategy developed to address performance of contractors in order to

improve expenditure on conditional grant

Changes to planned targets

There were no changes to the planned targets on the year under review.

Sub-programme expenditure

Sub- Programme Name

2015/2016 2014/2015 Final

Appropriation Actual

Expenditure (Over)/Unde Expenditure

Final Appropriation

Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000 Corporate Services 303,491 297,678 5,813 273,194 271,165 2,029

Office of the MEC 1,902 1,902 (0) 1,822 1,781 41



!!

- 31 -&

Sub- Programme Name

2015/2016 2014/2015 Final


Expenditure (Over)/Unde Expenditure

Final Appropriation

Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000 Total 305,393 299,580 5,813 275,016 272,946 2,070

Linking performance with budgets Expenditure of the budget is linked to ensuring operations of the department are maintained effectively that includes: compensation of employees, maintained of buildings, security and ICT infrastructure and maintenance.



!!

- 32 -&

4.2 Programme 2: Human Settlements

The purpose: To ensure provision of housing development, access to adequate accommodation in relevant areas, access to social infrastructure and economic opportunities

To achieve the above mentioned objectives, the programme is divided into three sub-programmes: Sub-programme Description Housing Needs, Research and Planning

This programme focuses on administration, policy initiatives and analysis, housing planning as well as research for the sector

Housing Development, Implementation, Planning and Targets

This programme focuses on financial, incremental, social, rental and rural interventions and implementation

Housing Assets Management and Property Management

This programme is geared for sales and transfer of properties to households, devolution and maintenance of housing properties

Strategic Objective: To reduce housing backlog through integrated planning and construction, with the main aim of promoting economic opportunities through transferring of housing properties to beneficiaries.


The department is on a positive trajectory of recovering from challenges experienced during 2013/14 and 2014/15 financial years. During the year under review the department has received roll over amounting to R308 012 00 on HSDG, therefore setting the grant to R1 593 889. As a result significant progress was recorded on construction of housing units on the rural programme withstanding underperformance by contracts. In contrast, the various housing programmes are not performing as expected therefore will impact realisation of strategic objectives. In order to correct the situation the department will ensure that activity planning is strengthened to improve on implementation of programmes i.e. Planning in advance and packaging of projects.

Progress on FLISP still remains a challenge as applicant’s are not meeting minimum qualifying requirements on the National Credit Act. This is likely to affect efforts by the province to implement strategies to deal with housing challenges for “Gap market”.



!!

- 33 -&

Strategic objectives: Programme 2: Human Settlements Strategic objectives Actual

Achievement 2014/2015

Planned Target

2015/2016




for 2015/2016


3. Housing development properly planned by October each year

Not achieved Formalise 4 settlements

0 -4 informal settlements

Community resolutions delayed the formalization process

4. Reduced housing backlog by 80 000 by 2019

2 065 9 854 8 605 -1 249 Delay in appointment of contractors and underperformance by contractors

5. Transferred 23 000 housing properties to beneficiaries by 2019

497 3 700 1 978 -1 722 Incomplete township register


Performance indicators

Programme 2: Integrated Sustainable Human Settlements Strategic objective: Housing development properly planned by October each year Performance Indicator


Planned Target

2015/2016




for 2015/2016


1. A Multi-Year Housing Development Plan/APP developed by October

Multi-Year Housing Development Plan reviewed

Review Multi–year Human Settlement development plan

Reviewed Multi- year development Plan

None None

2. Number of informal settlements formalised through township establishment

0 Formalise 4 settlements

0 -4 informal settlements

Community resolutions delayed the formalization process

3. Number of Hectares of land acquired

0 40ha 131 hectares of land acquired at Greater Tzaneen

91ha Increased demand for housing programmes in mining towns and Provincial Growth



!!

- 34 -&



Planned Target

2015/2016




for 2015/2016


Municipality-Hamawasha and Greater Tubatse Municipality- Mooifontein

Points

4. Number of planned human settlement (housing) development based on IDP’s, National and Provincial priorities approved (Number of development sites identified)

10 000 10 000 12 000 2 000 Additional development areas identified by municipalities as priorities Replacement of disapproved beneficiaries

5. Number of municipalities accredited on housing provision

0 Prepare 1 (one) municipality for level 2 accreditation

Confirm 3 municipalities for level 1 accreditation

One municipality prepared for level two accreditation Three municipalities prepared for level 1 accreditation (accreditation preparatory meetings for Makhado, Musina and Greater Tubatse local municipalities were held)

None None

6. Number of capacity building workshops conducted

38 35 43 8 Additional requests from municipalities

7. Number of municipalities capacitated and

2 Support 5 Municipality through NUSP

5 (Lephalale, Elias

Motsoaledi, Polokwane,

None None



!!

- 35 -&



Planned Target

2015/2016




for 2015/2016


supported with regard to human settlement (housing) development planning

Great Tzaneen and Greater

Tubatse)

8. Number of Acts passed and/or policy guidelines approved

0 Pass1 Policy/ Act

0 -1 Draft policy on Housing Allocation is being reviewed

9. Number of research papers completed

0 1 0 -1 Draft research report on Disaster Housing Programme

Programme 2: Integrated Sustainable Human Settlements Strategic objective: Reduced housing backlog by 80 000 by 2019 Performance Indicator


Planned Target

2015/2016




for 2015/2016


10. Number of new housing units completed in the Province across all housing programmes being utilized by the Province

2 065 9 854 8 588 -1 266 Delay in appointment of contractors and Underperformance by contractors

11. Number of Housing stock/RDP rectified

60 500 0 -500 Delay in appointment of contractors

12. Number of households connected to basic services as part of the informal Settlement Upgrading Programme

0 3 000 1 091 -1 909 Delay in appointment of contractors and Underperformance by contractors



!!

- 36 -&

Programme 2: Integrated Sustainable Human Settlements Strategic objective: Reduced housing backlog by 80 000 by 2019 Performance Indicator


Planned Target

2015/2016




for 2015/2016


13. Number of rental units built (CRU) and (SH)

0 0 0 0 The target was reviewed during the financial year

14. Number of new sites connected to basic water and sanitation services as part of the Integrated Residential Development Programme


Programme 2: Integrated Sustainable Human Settlements Strategic objective: Transferred 23 000 housing properties to beneficiaries by 2019 Performance Indicator


Planned Target

2015/2016



to Actual Achievement for

2015/2016


15. Number of units transferred through the Enhanced Extended Discount Benefit Scheme


16. Number of units registered and endorsed

309 3 500 1 978 -1 522 Incomplete township register

17. Number of rental units devolved to municipalities in terms

3 3 3 None None



!!

- 37 -&

Programme 2: Integrated Sustainable Human Settlements Strategic objective: Transferred 23 000 housing properties to beneficiaries by 2019 Performance Indicator


Planned Target

2015/2016



to Actual Achievement for

2015/2016


of section 15 of the housing Act, 97

18. Number of projects approved

32 40 61 21 Additional contractors appointed to reduce risk on non-performance

19. Number of job opportunities created

392 5 015 1 325 -3 690 Under reporting by contractors as well as insufficient labour engaged on infrastructure projects

20. Number of beneficiaries/ subsidies approved on HSS

10 171 9 854 8 459 -1 395 Delay in submission of development areas by municipalities

21. Number of reports on rental disputes compiled

91% (273 of 301)

1 1

None None

22. Number of Reports submitted (MEC advisory panel)

0 1 1 None None

23. Number of Finance-Linked Individual Subsidy Programme (FLISP) units completed

60 300 43 -257 Applicants failing National Credit Act requirements



• Delay in appointment of contractors/ service providers • Underperformance by contractors • High Vacancy rate in planning unit



!!

- 38 -&


• In order to deal with protracted SCM process that often take up to 5 months from advertisement to final appointment, the department has undertaken to procure a Panel of Contractors and built environment professionals for a period of three years. This is done as part of forward planning to alleviate the chronic challenge associated with procurement. Further to that, a procurement strategy was developed.

• Inadequate capacity in both financial and project management has been a challenge in construction of low costs houses since over 60% of our contractors are emerging companies. The Department has undertaken to assist the contractors by approving cessions with reputable material suppliers identified by contractors. Partnership with Contractor’s Preferred Material Suppliers enables the contractors with limited financial resources to conclude cession agreement with their preferred material suppliers such as big hardwares and manufacturers.


The targets on this programme were changed during the year under review, mainly due to reprioritisation of projects within Human Settlements Development Grant (HSDG). All the strategic objectives were affected details are as follows:

Performance indicator

Initial target 2015/16 Revised target 2015/16

6. Number of capacity workshops conducted

35 35

11. Number of new housing units completed in the province across all housing programmes being utilised by the province

7 865 9 854

13. Number of rental units built (CRU) and (SH)

250 0

20. Number of beneficiaries/subsidies approved on HSS

7 865 9 854




!!

- 39 -&

2015/2016 2014/2015 Sub- Programme Name

Final Appropriation

Actual Expenditure


Final Appropriation

Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000 Housing Needs, Research & Planning

173,126 171,660 1,466 16,875 14,898 1,977

Housing Development, Implement, Planning & Targets.

1,486,674 1,022,134 464,541 874,201 629,462 244,739

Housing Asset Management & Property Management

39,627 35,053 4,575 32,753 32,572 181

Total 1,699,428 1,228,847 470,581 923,829 676,932 246,897

Linking performance with budgets

The sub-programme housing development, implementation, planning and targets have spent less than 70% of its allocation. This has affected performance of targets on strategic objective 4 on reduction of housing backlog where significant number of targets was not fully achieved as planned. Other sub-programme has performed relatively well.



!!

- 40 -&

4.3 Programme 3: Cooperative Governance The purpose: The programme aims at capacitating municipalities to implement their legal mandates through the following sub-programme:

List of the sub-programmes Sub-programme Description Local Government Support

To support municipalities with administration requirements and compliance, financial management and accountability, public participation, capacity development as well as perform monitoring and evaluation

Development Planning To support and monitor municipalities on spatial planning, disaster management, land use management, municipalities infrastructure delivery, local economic development and IDP coordination

Strategic Objective: The objective of this programme focuses on capacity development in municipalities. Municipalities require constant monitoring and evaluation with the purpose of implementation on corrective actions to ensure service delivery. Governance in municipalities has improved in the past five years. This is evident in the:

• Professionalisation of the recruitment of senior managers in municipalities

• Development and implementation of valuation rolls in all 25 local municipalities

• Compliance with the Municipal Systems Act by installing controls to ensure proper and effective governance systems

• Development and implementation of credible IDP’s

• Strategic oversight on financial management programme

Strategic objectives, performance indicators, planned targets and actual achievements Implementation of SPLUMA Municipalities are being supported with the implementation of the Act. To date 2 municipalities (Polokwane and Makhado) will be utilizing independent Municipal Tribunals while the rest will be utilizing shared services within the districts.The pace gazetting by-laws is still slower by some of the municipalities which impacts of final implementation of the Act. The province is experiencing challenges with buy-in from Traditional Leaders in the implementation process

Municipal Infrastructure Development Project management still a challenge with regard to implementation of Municipal Infrastructure Grant. By the end of March 2016 municipalities had spent a combined 48% of the provincial allocation.



!!

- 41 -&

Financial management Oversight committees as regulated by MFMA have been established and monitored for functionality on a regular basis. For the audit outcomes of 2014/15 financial year, the number of municipalities with unqualified audits has reduced from 12 to 10 compared with 2013/14 financial year. Support provided to municipalities has also yielded positive results, as the number of municipalities with disclaimers has reduced from 6 to 5 in 2014/15 financial year. The audit outcomes are depicted below for the last five years:

Based on the assessment of the audit reports the following issues are still major challenges for Municipalities to obtain the clean audit report:

• Assets Management

• Unauthorised, Irregular, Fruitless and Wasteful expenditure

• Poor records management

• Material impairment and losses

• Poor internal controls

• Noncompliance with Supply Chain Management

• Noncompliance with Framework for Managing Programme Performance Information.

Municipal Transformation and Institutional Development

Municipalities with low revenue (resulting in low grading) finding it difficult to attract suitably qualified candidates therefore prolonging the process to fill strategic positions in municipalities.

2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 Disclaimer 10 15 9 6 5

Adverse 3 1 3 1 1

Qualified 12 12 18 11 14

Unqualified 3 1 0 12 10

Clean Audit 2 1 0 0 0

0 2 4 6 8 10 12 14 16 18 20

Num

ber

Municipal Audit Performance



!!

- 42 -&

Strategic objectives

Programme 3 : Co-operative Governance Strategic objectives


Planned Target

2015/2016


Deviation from planned

target to Actual

Achievement for 2015/2016


6. Improved support and oversight in all municipalities by 2019

4 Reports on implementation of municipal capacity development plan

4 None None


1 2

Programme 3 : Co-operative Governance Strategic objective: Improved support and oversight in all municipalities by 2019 Performance Indicator Actual


Planned Target

2015/2016



to Actual Achievement 2015/2016


1. Number of municipal performance reports compiled as per the requirements of Section 47 of the MSA

1 1 1 None None

2. Number of municipalities supported to comply with MSA regulations

- 30 30 None None

3. Number of municipalities supported to institutionalise Performance Management System (PMS)

- 30 30 None None

4. Number of municipalities supported through Support Monitoring and

- 30 30 None None

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1 Customised Indicators 2 Provincial Specific Indicators



!!

- 43 -&



Planned Target

2015/2016





Intervention Plans 5. Number of municipalities with functional audit committees

30 30 30 None None

6. Number of municipalities monitored on implementation of Audit Response Plan based on the 2014/15 audit outcomes monitored

- 30 30 None None

7. Number of municipalities guided to comply with MPRA by target date.

- 25 25 None None

8. Number of municipalities supported to improve revenue management and debt collection.

- 25 25 None None

9. Report on functional provincial Anti-corruption technical working groups developed

- 4 4 None None

10. Number of reports on fraud, corruption and maladministration cases reported and investigated.

30

4 4 None None

11. Number of capacity building interventions conducted in municipalities.

- 4 4 None None

12. Number of municipalities supported to roll-out gender policy framework.

- N/A N/A N/A N/A

13. Number of functional coordinating structures for infrastructure development and service delivery

- 3 3 None None



!!

- 44 -&



Planned Target

2015/2016





14. Number of municipalities assessed against service delivery benchmarks

-

30 30

None None

15. Number of municipalities supported with service delivery programmes

- 29 29 None None

16. Number of municipalities supported to implement indigent policies

-

25 25 None None

17. Number of ward committees supported on implementation of ward operational plans

- 543 543 None None

18. Number of municipalities supported on the development of ward level database with community concerns and remedial actions produced.

- 25 25 None None

19. Report on the number of community report back meetings convened by councillors in each ward

- 4 4 None None

20. Number of functional municipal disaster management centres.

5 5 5 None None

21. Provincial Fire Brigade Services established by target date

- 1 0 1 Review of organisation structure pending

22. Number of municipalities supported with the implementation SPLUMA

- 25 25 None None

23. Number of municipalities supported with development of legally compliant IDP

30 30 30 None None

24. Number of municipalities supported to implement LED projects in line with municipal LED strategies

- 25 25 None None



!!

- 45 -&



Planned Target

2015/2016





25. Number of municipalities monitored to reduce cost of doing business through red tape intervention

- 25 25 None None

26. Number of work opportunities created through the CWP in municipalities

21 496 21 000 23 906 2 906 CoGTA provided addition funding to increase participants

27. Number of municipal performance reports compiled as per MSA

- 4 4 None None

28. Number of municipalities supported with compilation of AFS for submission to the AG

- 30 30

None None

29. Number of reports on municipalities with functional MPAC

- 4 4 None None

30. Number of reports on municipalities monitored to comply with section 15(1)

- 4 4 None None

31. Number of reports on municipalities with functional IGR structures

- 4 4 None None

32. Number of reports Imbizo held by MEC

-

4 4 None None

33. Number of awareness campaign conducted for elections.

2 4 4 None None

34. Number of meetings of the Intergovernmental Disaster Management forum

4 4 4 None None

35. Number of Provincial fire preparedness reports compiled

1 1 1 None None

36. Number of municipalities supported to implement SDFs in terms of the guidelines

30 25 25 None None

37. Number of municipalities supported in Land Use Management

- 25

25 None None



!!

- 46 -&



Planned Target

2015/2016





Process 38. Number of reports on the Statutory Board (Townships Board)

5 5 3 2 Lapsing of Township Boards as a result of implementation of SPLUMA

39. Number of demarcated sites available for Human Settlements

5 130 5000 0 -5 000 Sites not delivered due to lapsed SLA

40. Number of Functional District LED Fora

- 5 5 None None

Note: In the column “Deviation from planned target to actual achievement for 2015/16” (-) reflects underachievement from the planned target while (+) indicates overachievement Reasons for all deviations

• The current approved organisational structure does not make provision for the establishment of the fire brigade services.

• Insufficient monitoring of contracts • The Limpopo Township Boards were appointed in terms of section 5 (2) of Township

Planning and Township Ordinance in 2013. The appointment was with effect from 12 March 2013 to 12 March 2018 or until the promulgation of Spatial Planning and Land Use Management Act, No 16 of 2013.


• Review of the organogram and possible partnership with Polokwane City • New appointment in the 2016/17 financial year to ensure completion of work done


The target was erroneously captured during the compilation and tabling of APP

Performance indicator Initial target 2015/16

Revised target 2015/16

17. Number of ward committees supported on implementation of ward operational plans

513 543




!!

- 47 -&


Final Appropriation

Actual Expenditure


Final Appropriation

Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000 Local Governance

184,760 183,108 1,652 174,796 174,442 354

Development Planning

58,182 57,630 552 58,009 57,871 138

Total 242,942 240,738 2,204 232,805 232,313 492

Linking performance with budgets The programme has achieved 36 of 38 targets for the year under review in accordance with the budget allocation. The expenditure is mainly on operational cost to support municipalities.



!!

- 48 -&

4.4 Programme 4: Traditional Affairs The purpose: Aims to support the institution of Traditional Leadership to operate within the context of co-operative governance

List of the sub-programmes

Sub-programme Description Traditional Institutional Admin

To support Traditional Institutions with administration, resource administration, land administration and facilitation of rural development

Administration of Houses of Traditional Leaders

To support Houses of Traditional leadership with administration of its committees and Local Houses

Strategic Objective: Ensure that provisions of Traditional Leadership legislation and policies are implemented


Provincial Committee on Traditional Leadership disputes and claims The term of office of the Limpopo Provincial Committee on Traditional leadership Disputes and Claims as per Government Gazette no. 2692 dated 18 March 2016 has been extended to December 2017. Institutions of Traditional Leadership are supported to ensure functionality and contributions to development agenda of government. Strategic objective

Programme 4: Traditional Institutional Development Strategic objectives


Planned Target

2015/2016




for 2015/2016


7. Supported all established institutions of Traditional Leaders by 2019

12 12 12 None None



!!

- 49 -&


Programme 4: Traditional Institutional Development Strategic objective: Supported all established institutions of Traditional Leadership by 2019

Performance Indicator


Planned Target

2015/2016




for 2015/2016


1. Number of sittings by the Provincial House of Traditional Leaders

2 2 2 None None

2. Number of sittings by the Local House of Traditional Leaders

10 10 10 None None

3. Number of reports on Traditional Councils supported

- 4 4 None None

4. Number of reports on cases finalised by the Commission on Traditional Leadership disputes and claims

- 4 4 None None

5. Number of vehicles purchased for qualifying traditional Leaders

- 105 178 73 Additional funds made available during budget adjustment

6. Number of reports on vehicles purchased

- 1 1 None None





!!

- 50 -&

During budget adjustment, additional funding was made available to cover tools of trade for qualifying Traditional Leaders. Changes to planned targets

Performance indicator Initial target 2015/16 Revised target 2015/16

5. Number of vehicles purchased for qualifying traditional Leaders

None 105

6. Number of reports on vehicles purchased

None 1



Final Appropriation

Actual Expenditure


Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 Traditional Institutional Administration

434,860 404,416 30,444 335,056 334,654 402

Administration of Houses of Traditional Leaders

6,991 6,922 69 6,988 6,844 144

Total 441,851 411,338 30,513 342,044 341,498 546

Linking performance with budgets Compensation of Traditional Leaders has been provided as support to institutions of Traditional Leadership. Other services provided include anthropological research and provision of tools of trade for Traditional Leaders.

5. TRANSFER PAYMENTS

5.1. Transfer payments to public entities

No transfer payments were made to any public entity



!!

- 51 -&

5.2. Transfer payments to all organisations other than public entities

No transfer payments were made to any organisations

6. CONDITIONAL GRANTS

6.1. Conditional grants and earmarked funds paid

Not applicable to the department

6.2. Conditional grants and earmarked funds received

The table below details the conditional grants and ear marked funds received during for the period 1 April 2015 to 31 March 2016.

Conditional Grant: Human Settlements Development Grant.

Department who transferred the grant

National Department of Human Settlements

Purpose of the grant Human Settlements Development

Expected outputs of the grant

1. Accelerated delivery of housing opportunities

2. Efficient utilisation of land for Human Settlements development

3. Improved property market

4. Housing rectification

Actual outputs achieved

• 8 588 housing units completed

• 133 hectares of land acquired in 2 municipalities

• 1 978 properties transferred to qualifying beneficiaries and 43 subsidies approved for FLISP

Amount per amended DORA R1,591,889

Amount received (R’000) R1,591,889

Reasons if amount as per DORA was not received

None

Amount spent by the department (R’000)

R1,123,959



!!

- 52 -&

Reasons for the funds unspent by the entity

Change of Development areas after approval in order to respond to the needs of the communities as well as the underperformance by contractors.

Reasons for deviations on performance

• Delay in appointment of contractors/ service providers

• Underperformance by contractors

• High Vacancy rate in planning unit

Measures taken to improve performance

The department is concluding a three-year contractor database against which it will be able to allocate annual units to contractors without having to go through a lengthy Supply Chain Management (SCM) process as all contractors in the database shall have been evaluated for functionality. This is intended to stem the tide against shoddy work and poor performance by contractors

Monitoring mechanism by the receiving department

• As part of the new contract management, contractor’s performance will be assessed on a weekly basis in addition to monthly and quarterly.

• Those who chronically default on their delivery schedules will on a monthly basis, loose their units which will immediately be reallocated to other contractors on the database.

• In worse case scenarios, contractors will forthrightly be terminated and blacklisted for non-performance and their entire allocation will be immediately re-allocated to other contractors in the database to complete the project.

7. DONOR FUNDS

7.1. Donor Funds Received

No donor funds were received during the year under review



!!

- 53 -&

8. CAPITAL INVESTMENT

8.1. Capital investment, maintenance and asset management plan

Infrastructure projects

2015/2016 2014/2015 Final

Appropriation R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000 Infrastructure transfer

- Current - - - - - - - Capital 1,591,889 1,123,959 467,930 827,747 583,021 244,726

Total 1,591,889 1,123,959 467,930 827,747 583,021 244,726

! !



!!

- 54 -&

!

PART C: GOVERNANCE



!!

- 55 -&

1. INTRODUCTION

The department commits to maintain the highest standards of governance as its fundamental to the management of public finances and resources. Users are assured that the department has good governance structures in place to effectively, efficiently and economically utilize the state resources, which is funded by the tax payer.

2. RISK MANAGEMENT • The Department reviews the Risk management policy and strategy annually has

it adopted by the Risk Committee and approved by the HOD.

• Risk assessment is conducted regularly on an annual basis to identify new and emerging risks and to set the tone for risk management activities. Risks are identified consistent with the mandate and objectives of the department to ensure that identified risks are relevant. Management develops risk mitigating measures to deal with the risks through risk assessment.

• The Risk Management Committee exist in terms of a charter and sits at least four times a year to consider progress made with regard to mitigation of significant risks to achievement of Departmental Objectives and the overall system of risk management.

• The Audit Committee considers progress on implementation of significant risks

on a quarterly basis and advises the department on risk management and independently monitors the effectiveness of the system of risk management.

• The department monitors prioritised risks that falls outside the risk appetite on a

regular basis and the risk monitoring report is send to the Risk Management Committee and Audit Committee for monitoring. The department had 77% high risk, 8% medium risks and 15% low risks in the beginning of the financial year. The prioritised risks improved to 8% high risks, 38% medium risks and 54 % low risks during the fourth quarter. Risk identified was linked to the Objectives and Risk Management systems assisted the department to improve performance.

3. FRAUD AND CORRUPTION Fraud prevention initiatives Fraud Prevention Plan developed and has been implemented through developing of Anti-Fraud &Corruption Strategy, awareness workshops and conducting investigation on cases reported. Mechanisms in place to report fraud and corruption Procedure manual developed and all cases received are sanctioned by Head of Department before official investigation is conducted.



!!

- 56 -&

Whistle blowing policy in place to guide officials on the process and management. Procedure on handling reported cases Cases are reported to the Head of Department office and upon findings emanating from the investigation, recommendation are forwarded to Head of Department for his/her consideration. Those which requires further referral to other units and or agencies, such referrals are done for their further handling

4. MINIMISING CONFLICT OF INTEREST

All employees are required to apply to the Executive Authority for permission to conduct remunerative work outside the public service in terms of Section 30 of the Public Service act. The department has entered into an agreement with Companies and Intellectual Property Commission (CIPC) in terms of which access has been provided for the purposes of viewing on the CIPC database. Before an award is made to the prospective bidder a search is performed to determine if either of the directors/members is a governmental employee.

Where a conflict of interest is identified, disciplinary proceedings are instituted against the affected employee.

5. CODE OF CONDUCT Ethical practices in the department are in line with the Code of Conduct for the Public Service. There is a reasonable mutual and harmonious relationship between employer and employee in the department due to consistent interaction between the parties in the form of Labour Management Forum as well as bilateral meetings with organised labour.

The Department regularly conducts workshops, briefing sessions, inductions and training sessions in relation to both PSCBC Resolution 1 of 2003 and PSCBC Resolution 14 of 2002. Disciplinary Code and Procedures Policy has been approved by the Executive Authority and is in force.

In case of breach of Code of Conduct, disciplinary proceedings will be instituted against the affected employee.

6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES • The Department has a functioning Employee Wellness Unit which addresses all the

Health Safety and Environmental issues.

• The Department has a Committee that deals with Health Safety and Environment.

• Audits are done on continuous basis to address issues that might pose risk to Health Safety and Environment. Workshops and Training are carried out to capacitate employees about their Health Safety and Environment.



!!

- 57 -&

• Failure to address Health Safety and Environment issues might lead to demotivated employees that will affect the overall organisational performance and might also lead to huge financial medical bills resulting in occupational diseases and or injuries.

!

!

!

!

!

!

!

!

!

!

!

!

!

!

!

!

!

!

!

7. PORTFOLIO COMMITTEES !



!!

- 58 -&

Dates of meetings Matters raised by Portfolio Committee

Departmental Actions

28 April 2015 Reduction of the HSDG by R559 million during February 2015 by Human Settlements and its implication to delivery of housing programmes in the province

The department applied for rollover of funds which was subsequently approved at R308million during the year

06 November 2015 Progress report on the suspension of the Head of Department

Slow progress on priority projects like Bendor Ext. 100 and Lephalale

Instability in Thabazimbi municipality

Performance of Kgatla Commission on resolution of lodged disputes and claims on Traditional Leadership

The matter is handled by Office of the Premier

Bendor Ext. 100: 19 units were completed. A delay was due to power of attorney which was resolved at around November 2015

Lephalale: Bulk water and sewer project are complete, currently Eskom is implementing the bulk electricity project. CRU construction will commence during 2016 as the contractors was appointed in December 2015.

Department deployed financial specialist and Acting Municipal Manager. Subsequently the municipality was put under administration as from March 2016.

The commission has resolved on 293 cases and the term of office was extended to December 2017



!!

- 59 -&

8. SCOPA RESOLUTIONS Resolution No.

Subject Details Response by the department Resolved (Yes/No)

SCOPA resolutions for the year ended March 2013

1. Material underspending of the vote

The committee heard and considered evidence as disclosed in the appropriation statement that the department has materially underspent the budget on programme 2: integrated sustainable human settlements to the amount of R449, 4 million. As a consequence, the department has not achieved all its objectives for this programme.

The Committee noted that the department underspent the vote due to lack of access to the servitude in Lephalale for bulk infrastructure project, pre-payment for securing long lead material and amount budgeted to buy land which was not utilised. However, the Committee is concern that the department has underspent its voted funds even in the previous financial year.

The Committee recommends that the Accounting Officer must take appropriate action against the responsible officials. It is further recommended that the Accounting Officer must develop a plan to effectively utilise the budget. A report on the implementation of these recommendations must be forwarded to SCOPA and the Portfolio Committee on Cooperative Governance, Human Settlement & Traditional Affairs by 31 March 2015.

Response The Department has put all systems in place to ensure that service providers are appointed well on time in order to avert the material underspending of the grant.

There are no officials to be held accountable hence no action was taken.

Lephalale Engineering Procure and Contract for bulk water and sewer delayed due to lack of access to the servitude in Lephalale for bulk infrastructure project which remained a problem during the year. The project was also marred by worker strikes which affected the progress.

Eskom bulk electricity contract required a pre-payment for securing long lead material. This pre-payment/expenditure is treated as under spending in public sector accounting terms.

Amount budgeted to buy land



!!

- 60 -&

Resolution No.


was not utilised because the negotiation took too long to finalise.

2 Usefulness of the information

The committee heard and considered evidence that the National Treasury Framework for Managing Programme Performance Information (FMPPI) requires indicators/measures should have clear unambiguous data definitions so that data is collected consistently and is easy to understand and use. A total of 37% of the indicators were not well defined in that clear, unambiguous data definitions were not available to allow for data to be collected consistently. This was due to the fact that management did not ensure that the requirements of National Treasury Framework for Managing Programme Information (FMPPI) are consistently applied to all indicators.

The Committee recommends that the Accounting Officer must take appropriate action against the responsible officials. The Committee further recommends that the Accounting Officer must develop a processes and systems to verify performance information in-line with the requirement of the National Treasury FMPPI. A report on the implementation of these recommendations must be forwarded to SCOPA and the Portfolio Committee on Cooperative Governance, Human Settlement & Traditional Affairs by 30 November 2015.

The Department has corrected the anormaly in the subsequent financial year as it is evident with the audit outcomes for 2013/14 where there were no findings on usefulness of performance information. Warning letters were issued to responsible officials.

Written warnings were given to Senior General Managers: ISHS, Senior General Managers: COGTA and Senior Managers: Strategic Planning.

No

3. Achievement of planned targets

The committee heard and considered evidence that the total number of 130 targets planned for the year, 32 of targets were not achieved during the year under review. This represents 25% of total planned targets that were not achieved during the year under review. This was mainly due to the fact that indicators and targets were not



!!

- 61 -&

Resolution No.


suitably developed during the strategic planning process. The Committee is concerned that even in the previous financial year the Department did not achieved all planned targets.

The Committee recommends that the Accounting Officer must take appropriate action against the responsible officials. The Committee further recommends that the Accounting Officer must conduct proper planning in order to ensure that planned targets are achieved. A report on the implementation of these implementations must be forwarded to SCOPA and the Portfolio Committee on Cooperative Governance, Human Settlement & Traditional Affairs by 30 November 2015.

No performance incentives were granted as per provision of the Performance Management system for CFO,SGM: Corporate Services, SGM: ISHS and SGM: CoGTA.

In addition to the annual plan that the department develop, Regular monitoring of performance through quarterly performance management meetings is conducted.

No

4 Procurement and contract management

The committee heard and considered evidence that the employees of the department performed remunerative work outside their employment in the department without written permission from the relevant authority as required by section 30 of the Public Service Act. The Committee is concern that the finding was identified even in the previous financial year.

The Committee recommends that the Accounting Officer must take appropriate action against the responsible officials. The Committee further recommends that the Accounting Officer must develop a system to detect employees doing remunerative work without permission, recover money earned irregularly and also ensure that their businesses are blacklisted. It is further recommended that the Accounting Officer must develop measures and procedures to ensure that officials comply with the rules and regulations. A report on the implementation of these recommendations must be forwarded to SCOPA and the Portfolio Committee

Responsible officials were given suspension without pay.

1. DL Mashego - Evidence vindicated the employee:

2. KC Razwiedani - Three months suspension without pay

3. MS Maloma - Case withdrawn as the employee had resigned from the company, by the time the work was done

4. ME Mashilwane - Case withdrawn as the official had

No



!!

- 62 -&

Resolution No.


on Cooperative Governance, Human Settlement & Traditional Affairs by 31 March 2015.

already left the Department:

5. DN Morifi - One(1) month salary Suspension:

6. TP Mawela - The official is deceased

The Department is continuously conducting awareness workshops for employees to ensure that they acquire the necessary permission to conduct remunerative work. Further, officials are reminded through email on a quarterly basis, of the need to request permission to do remunerative work outside the public service if they wish to do so. Annexure H

The Department has also entered into a service level agreement with Companies and intellectual Property Commission in terms of which access to the database has been granted to the Department to enable the latter to verify the ownership, membership, directorship and shareholding information of companies, close corporations and co-operatives doing business with the Department. Annexure: I

The Department has also ensured that the directors/members of the shortlisted companies are checked through PERSAL system to verify if any of them is employed by government.

5. Expenditure Management

The committee heard and considered evidence that the contractual obligations and money owed by the Department were not settled within 30 days or an agreed period, as required by section n 38(1)(f) of the PFMA and



!!

- 63 -&

Resolution No.


TR 8.2.3.

The Committee recommends that the Accounting Officer must take appropriate action against the responsible officials. The committee further recommends that the Accounting Officer must ensure that effective internal control systems are in place for processing and approving payment. The Accounting Officer must also develop effective and reliable systems and procedures to ensure that payments due to creditors are settled within 30 days from receipt of invoice, and such payments should be processed after the receipt of goods or services.

A report on the implementation of these recommendations must be forwarded to the SCOPA and Portfolio Committee on Cooperative Governance, Human Settlements & Traditional Affairs by 30 November 2015.

Subsequent to the SCOPA hearings, a written warning was issued to the Senior Manager Departmental Expenditure and Housing Finance in February 2014 as the SMS official directly responsible for expenditure management. Annexure J

The diligence associated with the payment of service providers within 30 days has improved to an extent that, in the two financial years ending 31 March 2014 and 2015 respectively, this matter has not arisen in the audit reports.

No

6. Leadership The committee heard and considered evidence that the management established a formal code of conduct which addresses appropriate ethical and moral behaviour, but employees did not adhere to the requirements.

The Committee recommends that the Accounting Officer must take appropriate action against the responsible officials. It is further recommended that the Accounting Officer must take effective steps to ensure that all adhere to the requirements of the formal code of conduct. A report on the implementation of these recommendations must be forwarded to SCOPA and the Portfolio Committee on Cooperative Governance, Human Settlement & Traditional Affairs by 30

Responsible officials were given three months suspension without pay. The officials in questions are named in the response to question 4.

The Department is continuously conducting awareness workshops for employees to ensure that they acquire the necessary permission to conduct remunerative work. Further, officials are reminded through email on a quarterly basis, on the

No



!!

- 64 -&

Resolution No.


November 2015. need to request permission to do remunerative work outside the public service if they wish to do so.

The Department has also entered into a service level agreement with companies and intellectual Property Commission in terms of which access to the database has been granted to the Department to enable the latter to verify the ownership, membership, directorship and shareholding information of companies, close corporations and co-operatives doing business with the Department. Annexure I

The Department has also ensured that the directors/members of the shortlisted companies are checked through PERSAL system to verify is any of them is employed by government.

7. Financial and performance management

The committee heard and considered evidence that compliance with applicable laws and regulations relating to strategic planning matters has not been adequately monitored by the Department.

The Committee recommends that the Accounting Officer must take appropriate action against the responsible officials. The Committee further recommends that the Accounting Officer must ensure that internal controls are in place to ensure that there is adequate monitoring of compliance with the applicable laws and regulations relating to strategic planning matters. A report on the implementation of these recommendations must be forwarded to SCOPA and the Portfolio Committee

The Department has corrected the anomaly as it is evident with the audit outcomes of 2013/14 where there were no findings on financial and performance management

No



!!

- 65 -&

Resolution No.


on Cooperative Governance, Human Settlements & Traditional Affairs by 31 March 2015.

8. Investigations in progress

The committee heard and considered evidence that an investigation is being conducted into allegations of tender improprieties involving the awarding of tenders to companies. The investigation was still ongoing at the reporting date.

The Committee noted that the 2011/12 investigation was included and the Department has been exonerated from any wrong doing. The 2012/13 investigation was finalised and the executive summary of the forensic report with the recommendations was submitted to the Department.

The Committee recommends that the Accounting Officer must take appropriate action against officials who did not comply with rules and regulations. The Committee further recommends that the Accounting Officer must provide progress report on the implementation of recommendations on the 2012/2013 investigation. It is further recommended that the Accounting Officer must provide full investigation report to the SCOPA. A report on the implementation of these recommendations must be forwarded to the SCOPA and Portfolio Committee on Cooperative Governance, Human Settlement & Traditional Affairs.

Progress report on the implementation of recommendations on the 2012/2013 investigation.

• Contracts are cancelled

• Both the Section 100(1)(b) Administrator and the National Treasury (Office of the Chief Procurement Officer) revised the procurement process and declared the Limpopo as a pilot project for housing procurement.

• This pilot project only procured 1,500 housing units out of 10,500. Since this is a sign that the pilot project has failed, the Department has since abandoned the pilot project and has restarted the procurement process for 2014/15, for the balance of 9,000 units with



!!

- 66 -&

Resolution No.


the approval of the Provincial Treasury Sec 100(1)(b) Administrator and office of the Chief Procurement Officer

• The Department received the Executive summary that contains recommendations for which it is responsible for implementing. The findings and recommendations appear on the attached ‘Executive Summary’. The Department has implemented the recommendations and as a result thereof 4(four) officials who were serving as members of the Bid Evaluation Committee (BEC) were charged and dismissed (Annexure K), and 4(four) officials who were serving as members of the Bid Adjudication Committee (BAC) were also charged but they were found not guilty. However the Department has filed for a judicial review of the verdict, and the matter is still pending.

• The department wrote a letter to request a release of the Human Settlements Development Grant.

The Human Settlements Development Grant revised business plan was approved in November 2013 by National Treasury

SCOPA resolutions for the year ended March 2014

1 Restatement of correspondin

The Committee heard and considered evidence that the Auditor-General reports that, the corresponding figures



!!

- 67 -&

Resolution No.


g figures

for 31 March 2013 have been restated as a result of an error discovered during 2014 in the financial statements of the Department at, and for the year ended, 31 March 2013

The Committee recommends that the Accounting Authority takes appropriate action against responsible officials since this anomaly is recurring and forward a report to SCOPA and the Portfolio Committee by 30 November 2015

There is no need for the Department to take action against anyone.

Continuous efforts are being made to acquaint officials with the Treasury Guides on the Preparation of Annual Financial Statements, and to ensure accurate allocation as well as reporting.

It should be noted that, the Department obtained an unqualified audit opinion without matters of emphasis i.e “clean audit report” during the financial year 2013/14.

During the preparation and review of the financial statements for submission to Auditor General, Financial Management Services discovered that an amount of R15 million disclosed as fruitless expenditure in the primary disclosure notes was also included in the secondary disclosure notes to the financial statements under Contingent Assets – Claims by the Department.

The Modified Cash Standards which are applied in the preparation of the annual financial statements permits the Department to correct prior year errors/omission retrospectively. During the preparation of the financial statements, the prior year corresponding figures were

No



!!

- 68 -&

Resolution No.


adjusted retrospectively in accordance with the Modified Cash Standard.

The matter was included in the audit report under “other matters” with a view to highlight to readers of the financial statements of material changes made to the corresponding prior figures. This did not have an effect on the Auditor General Audit report and hence the clean audit report.

2. Material under spending of the vote

The Committee heard and considered evidence that as disclosed in the appropriation statement, the Department has materially underspent the budget on Programme 2: Human Settlements to the amount of 382 million. As a consequence, the Department has not achieved all its objectives for this programme.

The Committee recommends that the Accounting Authority must take appropriate action against the responsible officials. It is further recommended that the Accounting Authority must develop an effective plan to avoid under spending of budget.

A report on the implementation of these recommendations must be forwarded to SCOPA and Portfolio Committee on Cooperative Governance, Human Settlement and Traditional Affairs by 30 November 2015.

The under spending was a ripple effect of the Department’s inability to appoint service providers in the financial year 2013/14 due to withholding of the Human Settlements Development Grant (HSDG).

The Department has since put systems in place to ensure that service providers are appointed well on time in order to avert the material under-spending of the Human Settlements Development Grant. Furthermore, the 2012/13 rolled-over contractors could not be immediately re-instated in 2013/14 because the budget was not available. Re-instatement was only done in January 2014 after the grant was released.

No



!!

- 69 -&

Resolution No.


3. Investigations

The committee heard and considered evidence that an investigation is being conducted by the Department into allegations of tender improprieties involving the awarding of tenders to companies. The investigation was still on-going at the reporting date.

Furthermore, the Committee considered the evidence that there was an overpayment of salary allowance to a traditional leader.

Again, the Committee considered evidence that there was payment for work not done on a project in Brooklyn village and Mandala village.

The Committee further heard and considered evidence that there was a misappropriation of state funds at two traditional councils.

The Committee also learnt with shock that unauthorised payment was made to an official with intention to issue a permit to stage an initiation school. Again, the Committee heard and considered evidence that price inflation was made to a newsletter of a local municipality. Again, the Committee considered evidence that the Public Protector has finalized an investigation into the following matter for 2013-2014:

• Allegation of payment of work not done on a project in Mandala village

The Committee recommends that the Accounting Officer must provide a comprehensive report and action taken against officials fingered by the

Allegation of payment of work not done on a project in Mandala village

No



!!

- 70 -&

Resolution No.


investigations. The committee further recommends that the Accounting Authority should investigate and recover money incurred as stated below:

• And overpayment of salary allowance to a traditional leader.

• The misappropriation of state funds at two traditional councils.

• Unauthorised payment was made to an official with intention to issue a permit to stage an initiation school.

• Price inflation was made to a newsletter of a local municipality.

The Committee further recommends that all the recommendations made by the Public Protector be implemented as such. A report on the implementation of these recommendations must be forwarded to SCOPA and Portfolio Committee on Cooperative Governance, Human Settlements & Traditional Affairs by 30 November 2015.

Recovery was no longer possible since the responsible official as mentioned above was dismissed on a prior misconduct case.

• Report on action taken against officials fingered by the investigations.

The Department has implemented the recommendation and as a results thereof 4(four) officials who were serving as members of the Bid evaluation Committee were charged and dismissed, and 4 (four) officials who were serving as members of the Bid Adjudication Committee were also charged but they were found not guilty. However the Department has filed for judicial review of the verdict, and the matter is still pending: Annexure A

• Overpayment of salary allowance to a traditional leader.

Traditional leaders receive monthly allowance from the Department. The court order was issued to the Department to stop payment of the monthly allowance amounting to R37 436.24 to the Traditional leader in question due to Traditional leadership dispute on the rightful heir to the throne.

An instruction was issued to the responsible officials, namely,



!!

- 71 -&

Resolution No.


Nkoana CK, Modiba MH and Mathiba MS to implement the court order timeously. The instruction was not carried out timeously and that resulted in an overpayment. These officials were suspended for one month each without pay: Annexure B

The disciplinary action was taken against the officials mentioned above. The officials were suspended without pay for a period of one month.

A total amount of R33 423.89 or 89% has since been recovered. A debt has also been raised to recover the outstanding amount.

• The misappropriation of state funds at two Traditional Councils.

In Tshakhuma Traditional Council the state did not suffer any financial loss as there was delay in banking the money. The money was ultimately deposited accordingly

In Rambuda Traditional Council, the Department could not recover the funds as the investigation could not establish sufficient culpability of any official. Annexure C

• Unauthorised payment was made to an official with intention to issue a permit to stage an initiation school.



!!

- 72 -&

Resolution No.


A sanction of one month suspension without pay was issued against the employee. Annexure D

• Price inflation was made to a newsletter of a local municipality.

Investigation revealed that all the necessary processes were followed and no wrong doing was discovered over the tender, therefore no action taken against any officials on this matter

The Committee further recommends that all the recommendations made by the Public Protector be implemented as such. A report on the implementation of these recommendations must be forwarded to SCOPA and Portfolio Committee on Cooperative Governance, Human Settlements & Traditional Affairs by 30 November 2015.

After the investigation, it was discovered that indeed work was not done and indeed payment was made. The responsible official was subjected to disciplinary process and he was since been dismissed.

No

9. PRIOR MODIFICATIONS TO AUDIT REPORTS The Department has achieved an unqualified audit outcome for the year ending March 2015. The Department developed an action plan to resolve significant findings by the Auditor General.

10. INTERNAL CONTROL UNIT

The Internal Control unit is established within the Chief Risks Office to coordinate the work of assurance service providers. The unit further performs the following: coordination of responses to findings of assurance service providers, development of action plans to resolve resolutions of assurance service providers, monitors management’s efforts to resolve such findings and provide feedback to the assurance providers on the progress made regarding assurance activities.



!!

- 73 -&

11. INTERNAL AUDIT AND AUDIT COMMITTEES

11.1 Internal Audit

Key activities and objectives of the internal audit

Internal Audit provides independent, objective assurance and consulting services that are designed to add value and improve CoGHSTA’s operations. It helps the Department accomplish its strategic, control and operational goals and objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of Governance Process, Risk Management and Internal Control

Summary of audit work done

The following audit projects were conducted as per the 2015-2016 annual audit plan.

Quarter One Quarter Two Quarter Three Quarter Four

1. Municipal Finance Support

2. Municipal Capacity Support

3. Follow-up

1. MPAT (verification completed)

2. Asset Management

3. Labour Relations

4. Housing Transfers

5. Traditional Affairs Revenue and Expenditure

6. Follow-up

1. In-Year Monitoring

2. Supply Chain Management

3. Interim Financial Statements

4. Reliability and Integrity of Performance Information

5. Follow up

1. Effectiveness of risk management process

2. DoRA

3. Housing Units Project Management

4. Housing Development

5. Follow-up

11.2 Audit Committee

Key Activities

Audit Committee (AC) has satisfactorily performed its mandate as enshrined in Sections 76 (4) (d) and 77 of the Public Finance Management Act (Act No. 1 of 1999) & Treasury Regulations 3.1 which states that AC must, amongst others, review the following:

I. the effectiveness of the internal control systems;

II. the effectiveness of the internal audit function;

III. the risk areas of the institution’s operations to be covered in the scope of internal and external audits;



!!

- 74 -&

IV. the adequacy, reliability and accuracy of the financial information provided to management and other users of such information;

V. any accounting and auditing concerns identified as a result of internal and external audits;

VI. the institution’s compliance with legal and regulatory provisions; and

VII. the activities of the internal audit function, including its annual work programme, coordination with the external auditors, the reports of significant investigations and the responses of management to specific recommendations.

During the financial year 2015/2016, the AC has met at least six (6) times (excluding special meetings) to perform its roles and responsibilities as stipulated in the AC Charter. In addition, the AC held its AC Annual Strategic Planning Workshop from 04 – 05 February 2016 to review its 2015/2016 performance and plan for the 2016/2017 financial year. The Central Audit Committee (CAC) structure assumed the responsibilities of ensuring that all the Resolutions taken during the Annual Strategic Planning for the AC are implemented. However, from the total of 34 Resolutions taken, only 28 were successfully implemented and one of the unresolved resolutions was overtaken by events while five (5) were carried to the financial year 2016/2017. The one resolution overtaken by events relates to the induction and orientation of the AC members about the mandate of the departments they are serving.

Both the AC Charter and the Accounting Officer’s Reporting Framework to the AC were reviewed and adopted during the Annual AC Strategic Planning. National Treasury 360 Degree Evaluation model was used to evaluate the work and performance of the AC. The final evaluation score yielded an average score of 4.14 (from rating of 1 – 5) when combining the average scores of all the AC Stakeholders.

Resignations and terminations from the AC membership were as per table below:

NO. NAME & SURNAME CLUSTER REASONS

1. Adv. Geraldine Khoza Cluster 01 AC Member Contract Prematurely Terminated by the MEC for Finance.

2. Mr. Malose Reginald Makgetha

Cluster 04 AC Member Resigned

The following table stipulate the nature and activities of each AC meeting/event held:



!!

- 75 -&

NO. PERIOD NATURE OF THE AC MEETING INFORMATION / DOCUMENTS REVIEWED

1. February 2016 AC Annual Strategic Planning Workshop

a. Audit Committee Charter,

b. Internal Audit Charter,

c. Accounting Officer’s Reporting Framework to the AC,

d. Value adding of the AC to the Client Departments,

e. Reflection on the Status of the Previous Year AC Resolutions,

f. 360 Degree Evaluation Feedback.

2. May 2015 Review of Fourth Quarterly Performance Review and Draft Annual Report (Including Draft Annual Financial Statements) before submission to the Auditor General

a. Performance Information,

b. Draft Annual Financial Statements,

c. Accounting Officer Report to the AC (Financial & Non-Financial),

d. Quarterly Risk Management Report,

e. SCOPA Resolutions Implementation Progress,

f. Auditor General Audit Findings Implementation Progress,

g. Internal Audit Quarterly Progress Report.

3. June 2015 Approval of the Three Year Internal Audit Plans plus Annual Plans

a. Three Year Internal Audit Plans plus Annual Plans.

4. July 2015 Review of Draft Audit and Management Reports

a. Draft Management Reports,

b. Draft Audit Reports.

5. September 2015 Review of First Quarter Performance Reports (Financial and Non-Financial)

a. All information under No. 2 except point a & b, and

b. Procurement Plans of the departments.

6. November 2015

Review of Second Quarter Performance Reports (Financial & Non-Financial)

a. All information under No. 2 except point a & b.

7. March 2016 Approval of the Three Year Internal Audit Plan plus Annual Plan and Auditor General Audit Coverage Strategy

b. All information under No. 2 except point a & b,

c. Three Year Internal Audit Plans plus Annual Plans for 2016/2017, and

d. Auditor General Audit Coverage Strategy.

OBJECTIVES OF THE AUDIT COMMITTEE

The Strategic Objectives of the AC as stipulated in its approved written Terms of Reference (AC Charter) are to ensure:

a. The availability of a well-resourced, functional and sustained internal audit function;

b. Sound relationship with all assurance providers, oversight structures and other stakeholders;

c. Effective and efficient Internal and External Audit processes



!!

- 76 -&

d. Promotion of sound functional interaction between the internal audit and other assurance providers;

e. That there is adequate and effective corporate governance, encompassing fraud and risk management, information technology, internal control, financial management and reporting systems;

f. Accounting Officers are fully supported in fulfilling their responsibilities in terms of the PFMA;

g. Accountability in terms of financial management and performance information for effective service delivery; and

h. Compliance with relevant laws and regulations.

Attendance of audit committee meetings by audit committee members

Name Qualifications Internal or External Member

If Internal, Position in the Department

Date Appointed

Date Resigned / Terminated

No. of Meetings Attended (Public Works)

No. of Meetings Attended (Sport, Arts & Culture)

No. of Meetings Attended (CoGHSTA)

B.M NGUNJIRI

1. CIA, 2. CTA 3. CCSA 4. B COM:

Honours 5. B COM:

Accounting

EXTERNAL N/A 01 January 2014

To Date 05 06 06

L.J VILAKAZI

1. Diploma in Accountancy

2. National Diploma Internal Auditing

3. Certificate in Accounting


To Date 06 06 06

A.N MHLONGO

1. CA (SA) 2. CIMA 3. CGCA 4. B COM:

Honours 5. B COM:

Accounting

6. Advanced Certificate in Taxation


TO Date 06 06 06

Adv. S.T KHOLONG

1. MBL 2. BA Law 3. LLB 4. Certificate


To Date 06 06 06



!!

- 77 -&

Name Qualifications Internal or External Member

If Internal, Position in the Department

Date Appointed

Date Resigned / Terminated

No. of Meetings Attended (Public Works)

No. of Meetings Attended (Sport, Arts & Culture)

No. of Meetings Attended (CoGHSTA)

in Corporate Governance

12. AUDIT COMMITTEE REPORT

REPORT OF THE AUDIT COMMITTEE ON DEPARTMENT OF CO-OPERATIVE GOVERNANCE, HUMAN SETTLEMENTS AND TRADITIONAL AFFAIRS (COGHSTA)

We are pleased to present our report for the financial year ended 31 March 2016.

Audit Committee Structure

Limpopo Provincial Government has an Audit Committee which is two tiered consisting of 4 Cluster Audit Committees, dealing with specific departments, and a shared Central Audit Committee.

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 and the related accounting policies and practices.

Stakeholder Engagement/s

The committee has been able to engage with the following stakeholders:

! COGHSTA Management ! Limpopo Provicial Internal Auditors ! Limpopo Provincial Treasury ! Limpopo Provincial Auditor (AGSA) ! MEC bilateral meetings



!!

- 78 -&

Audit Committee Skills Development

A strategic was held during the last quarter of the finacial year to assist the audit committee members better understand their challenging roles and the direction of the province in general.

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 control weaknesses, which were raised with the Department.

The following internal audit work was completed during the year under review:

No Audit Projects

1 Effectiveness of Risk management Process

2 Management Performance Assessment Tool (MPAT)

3 In Year Monitoring (IYM)

4 Division of Revenue

5 Supply Chain Management

6 Revenue Management

7 Asset Management

8 Interim Financial Statements

9 Reliability and Integrity of Performance Information

10 Labour relations

11 Housing Units Project Management

12 Housing Transfers

13 Housing Development

14 Traditional Affairs' Revenue and Expenditure

15 Municipal Finance Support

16 Municipal Capacity Support

17 Follow Up Audits



!!

- 79 -&

The Audit Committee continues to monitor on a quaterly basis management’s efforts to resolve the above matters. The internal audit team also performs a number of follow up audits througout the year and the results are included in the audit committee packs for tracking purposes.

Risk Management

The department has embarked on a search for an independent risk management committee chairman. The objective is to ensure that the committee is chaired by a non-conflicted party.

It is vital however to point out that there is a risk assessment process in place as well as the resultant risk register. The top ten (10) risk are monitored by the Audit Committee on a quarterly basis; with special attention paid to remedial actions and residual risk exposures. This is over and above the efforts of the risk management committee.

In-Year Management and Monthly/Quarterly Report

The department has reported monthly and quarterly to the Treasury as is required by the PFMA. In addition at all audit committee meetings the department has presented quarterly reports for review and or consideration by us.

Evaluation of Financial Statements

We reviewed the annual financial statements prepared by the department at the audit committee meeting held on 24 May 2016, and recommended them for audit.

Evaluation of Performance Information

At the same audit committee meeting we evaluated performance tables and recommended them for audit after further refinement by management.

Auditor General’s Report

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



!!

- 81 -&

PART D: HUMAN RESOURCE

MANAGEMENT



!!

- 82 -&

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

1. OVERVIEW OF HUMAN RESOURCES The Department has an organizational structure that has 2540 posts that support the organization in the realization of the strategic objectives of the institution and 2256 of posts are filled. Strategic Human Resources Management and strategic planning plays a critical role in the alignment of the strategic objectives of the organization and the current and future human resources needs as well as the challenges that might inhibit consistent achievement of organizational needs

In terms of employment equity the overall target of 50% has been exceeded and stood at 55%, the target for people with disability at SMS has been achieved and stood at 2% with regard to female SMS there has been a regression and stood at 39%, however the department has identified and earmarked posts to be filled with females at SMS in order to redress the imbalances of the past

The department has revised the Human Resources plan , the Work place skills plan, the performance management and development policy, Career retention and management policy, amongst others in order to live up to Section 195 of the constitution “to implement and enforce good human resources management and career management practices that maximizes human potential”

The department pride itself of 99% of employees who have completed their performance instruments and assessed on a semester basis, the employee health and wellness programme functions effectively and promote a healthy standards of life through the following, health talks organized for workers, voluntary counselling and testing, health checks blood pressure ,cholesterol, sugar diabetes, HIV etc.

The department has a fully-fledged orientation and induction programme that integrates employees and ensures their maximum performance and we are currently in the process of developing an electronic performance management system that will link individual performance to the overall performance of the organization.

2. HUMAN RESOURCES OVERSIGHT STATISTICS 3.1. Personnel related expenditure The following tables summarises the final audited personnel related expenditure by programme and by salary bands. In particular, it provides an indication of the following:

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



!!

- 83 -&

Table 3.1.1 Personnel expenditure by programme for the period 1 April 2015 and 31 March 2016

Programme Total expenditure (R’000)

Personnel expenditure (R’000)

Training expenditure (R’000)

Professional and special services expenditure (R’000)

Personnel expenditure as a % of total expenditure

Average personnel cost per employee (R’000)

Administration 298,935 176,412 0 0 59 78 Co-operative governance 239,612 221,834 0 0 92.6 98 Human Settlements 1,228,608 88,941 0 0 7.2 39 Tradition Institutional Develop 411,426 347,846 0 0 84.5 154

Total 2,178,581 835,033 0 0 38.3 370

Table 3.1.2 Personnel costs by salary band for the period 1 April 2015 and 31 March 2016

Salary band Personnel expenditure (R’000)

% of total personnel cost

No. of employees

Average personnel cost per employee (R’000)

Lower skilled (Levels 1-2) 41,083 4.8 325 126,409

Skilled (Levels 3-5) 62,219 7.3 369 168,615 Highly skilled production (Levels 6-8) 325,461 38 1 123 289,814 Highly skilled supervision (Levels 9-12) 201,358 23.5 351 573,670 Senior management (Levels 13-16) 53,669 6.3 54 993,870

Contract (Levels 1-2) 9 0 0 0

Contract (Levels 6-8) 1,306 0.2 5 261,200

Contract (Levels 9-12) 10,683 1.2 27 395,667

Contract (Levels 13-16) 4,337 0.5 2 2,168,500

Abnormal Appointment 131,251 15.3 1 505 87,210

TOTAL 831,376 97.1 3 761 221,052



!!

- 84 -&

Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the period 1 April 2015 and 31 March 2016

Programme

Salaries Overtime Home Owners Allowance

Medical Aid

Amount (R’000)

Salaries as a % of personnel costs

Amount (R’000)

Overtime as a % of personnel costs

Amount (R’000)

HOA as a % of personnel costs

Amount (R’000)

Medical aid as a % of personnel costs

Administration 124,813 69.3 9,734 5.4 5,177 2.9 5,859 3.3 Pr2:CGHT:Human Settlements 68,648 69.9 659 0.7 2,588 2.6 2,480 2.5 Pr3:CGHT:Co-operative Governance 447,676 78.2 1,239 0.2 19,868 3.5 20,777 3.6

Statutory 4,099 81.4 67 1.3 89 1.8 88 1.7

TOTAL 645,236 75.4 11,699 1.4 27,722 3.2 29,204 3.4

Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the period 1 April 2015 and 31 March 2016

Salary band

Salaries Overtime

Home Owners Allowance

Medical Aid

Amount (R’000)

Salaries as a % of personnel costs

Amount (R’000)

Overtime as a % of personnel costs

Amount (R’000)

HOA as a % of personnel costs

Amount (R’000)

Medical aid as a % of personnel costs

Lower skilled (Levels 1-2) 26671 64.9 8 0 4201 10.2 4128 10 Skilled (Levels 3-5) 42,277 67.9 176 0.3 4,735 7.6 5,313 8.5 Highly skilled production (Levels 6-8) 237,971 72.3 7,430 2.3 12,089 3.7 13,992 4.3 Highly skilled supervision (Levels 9-12) 148,872 68.6 4,018 1.9 4,995 2.3 4,927 2.3 Senior management (Levels 13-16) 43,429 75.4 0 0 1,625 2.8 810 1.4

Contract (Levels 1-2) 4 44.4 5 55.6 0 0 0 0

Contract (Levels 6-8) 1,030 78.7 62 4.7 39 3 0 0

Contract (Levels 9-12) 9,664 82.4 0 0 26 0.2 24 0.2

Contract (Levels 13-16) 4,078 94 0 0 11 0.3 0 0

Abnormal Appointment 131,239 100 0 0 0 0 12 0

TOTAL 645,235 75.4 11,699 1.4 27,721 3.2 29,206 3.4



!!

- 85 -&

3.2. 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 (see definition in notes below).

Department has 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 as on 31 March 2016 Programme Number of

posts on approved establishment

Number of posts filled

Vacancy Rate Number of employees additional to the establishment

Administration, Permanent 454 395 13 0 Pr2:CGHT:Human Settlements, Permanent 198 183 7.6 0 Pr3:CGHT:co-operative Governance, Permanent 1 870 1 667 10.9 0 Statutory, Permanent 18 11 38.9 0 TOTAL 2 540 2 256 11.2 0

Table 3.2.2 Employment and vacancies by salary band as on 31 March 2016 Salary band Number of

posts on approved establishment



Lower skilled (Levels 1-2), Permanent 402 325 19.2 0 Skilled (Levels 3-5), Permanent 422 369 12.6 0 Highly skilled production (Levels 6-8), Permanent 1 217 1 123 7.7 0 Highly skilled supervision (Levels 9-12), 403 351 12.9 0



!!

- 86 -&

Salary band Number of posts on approved establishment



Permanent Senior management (Levels 13-16), Permanent 62 54 12.9 0 Contract (Levels 6-8), Permanent 5 5 0 0 Contract (Levels 9-12), Permanent 27 27 0 0 Contract (Levels 13-16), Permanent 2 2 0 0

TOTAL 2 540 2 256 11.2 0

Table 3.2.3 Employment and vacancies by critical occupations as on 31 March 2016 Critical occupation

Number of posts on approved establishment



Administrative related, Permanent 860 764 11.2 0 Architects town and traffic planners, Permanent 11 6 45.5 0 Auxiliary and related workers, Permanent 26 21 19.2 0 Cartographers and surveyors, Permanent 1 1 0 0 Civil engineering technicians, Permanent 5 5 0 0 Cleaners in offices workshops hospitals etc., Permanent 388 326 16 0 Client inform clerks(switchb recept inform clerks), Permanent 3 3 0 0 Communication and information related, Permanent 10 9 10 0 Engineering sciences related, Permanent 4 4 0 0 Engineers and related 108 103 4.6 0



!!

- 87 -&

Critical occupation




professionals, Permanent Finance and economics related, Permanent 2 1 50 0 Financial and related professionals, Permanent 84 78 7.1 0 Financial clerks and credit controllers, Permanent 167 151 9.6 0 Head of department/chief executive officer, Permanent 1 1 0 0 Human resources & organisat developm & relate prof, Permanent 8 8 0 0 Human resources clerks, Permanent 27 26 3.7 0 Human resources related, Permanent 35 27 22.9 0 Legal related, Permanent 9 9 0 0 Library mail and related clerks, Permanent 3 3 0 0 Logistical support personnel, Permanent 28 14 50 0 Material-recording and transport clerks, Permanent 1 1 0 0 Messengers porters and deliverers, Permanent 14 8 42.9 0 Motor vehicle drivers, Permanent 2 2 0 0 Other administrat & related clerks and organisers, Permanent 242 236 2.5 0 Other administrative policy and related officers, Permanent 2 2 0 0



!!

- 88 -&

Critical occupation




Other occupations, Permanent 266 254 4.5 0 Quantity surveyors & rela prof not class elsewhere, Permanent 1 1 0 0 Risk management and security services, Permanent 7 5 28.6 0 Secretaries & other keyboard operating clerks, Permanent 59 46 22 0 Security guards, Permanent 149 127 14.8 0 Senior managers, Permanent 17 14 17.6 0

TOTAL 2 540 2 256 11.2 0

3.3. Filling of SMS Posts The tables in this section provide information on employment and vacancies as it relates to members of the Senior Management Service by salary level. It also provides information on advertising and filling of SMS posts, reasons for not complying with prescribed timeframes and disciplinary steps taken. Table 3.3.1 SMS post information as on 31 March 2016 SMS Level Total

number of funded SMS posts






0 0 0 0 0



Salary Level 14 16 14 88 2 12

Salary Level 13 40 35 88 5 12

Total 63 53 84 10 16

Table 3.3.2 SMS post information as on 30 September 2015



!!

- 89 -&

SMS Level Total number of funded SMS posts






0 0 0 0 0



Salary Level 14 16 14 88 2 12

Salary Level 13 40 35 88 5 12

Total 63 53 84 10 16

Table 3.3.3 Advertising and filling of SMS posts for the period 1 April 2015 and 31 March 2016 SMS Level Total

number of funded SMS posts






0 0 0 0 0

Salary Level 16 0 0 0 0 0 Salary Level 15 4 1 4 3 1 Salary Level 14 3 1 1 2 2 Salary Level 13 9 4 2 5 6 Total 16 6 7 10 15

Table 3.3.4 Reasons for not having complied with the filling of funded vacant SMS - Advertised within 6 months and filled within 12 months after becoming vacant for the period 1 April 2015 and 31 March 2016 Reasons for vacancies not advertised within six months Not applicable Reasons for vacancies not filled within six months The process to appoint SMS is cumbersome because in entails writing of technical exercises, presentation and competency assessments which are too involved and cannot be done immediately. These include verification of qualifications, security checks etc. which are outside the control of HR practitioners Table 3.3.5 Disciplinary steps taken for not complying with the prescribed timeframes for filling SMS posts within 12 months for the period 1 April 2015 and 31 March 2016 Reasons for vacancies not advertised within six months Not applicable



!!

- 90 -&

Reasons for vacancies not filled within six months Not applicable 3.4. 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 3.4.1 Job Evaluation by Salary band for the period 1 April 2015 and 31 March 2016 Salary band


Number of Jobs Evaluated

% of posts evaluated by salary bands

Posts Upgraded Posts downgraded Number % of

posts evaluated

Number % of posts evaluated

Lower skilled (Levels 1-2) 402 0 0 5 0 0 0 Contract (Levels 1-2) 5 0 0 0 0 0 0 Contract (Levels 6-8) 27 0 0 0 0 0 0 Contract (Levels 9-12) 1 0 0 0 0 0 0 Contract (Band D) 1 0 0 0 0 0 0 Skilled (Levels 3-5) 422 0 0 1 0 0 0 Highly skilled production (Levels 6-8) 1 217 0 0 0 0 0 0 Highly skilled supervision (Levels 9-12) 403 0 0 0 0 0 0 Senior Management Service Band A 42 0 0 0 0 0 0 Senior Management Service Band B 15 0 0 1 0 0 0 Senior Management 4 0 0 0 0 0 0



!!

- 91 -&

Salary band


Number of Jobs Evaluated

% of posts evaluated by salary bands

Posts Upgraded Posts downgraded Number % of

posts evaluated

Number % of posts evaluated

Service Band C Senior Management Service Band D 1 0 0 0 0 0 0 TOTAL 2 540 0 0 7 0 0 0

The following table provides a summary of the number of employees whose positions were upgraded due to their post being upgraded. The number of employees might differ from the number of posts upgraded since not all employees are automatically absorbed into the new posts and some of the posts upgraded could also be vacant. Table 3.4.2 Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2015 and 31 March 2016 Total number of Employees whose salaries exceeded the grades determine by job evaluation

None

Table 3.4.3 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2015 and 31 March 2016 Total number of Employees whose salaries exceeded the grades determine by job evaluation

None

Table 3.4.4 Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2015 and 31 March 2016 Total number of Employees whose salaries exceeded the grades determine by job evaluation

None



!!

- 92 -&

3.5. Employment Changes This section provides information on changes in employment over the financial year. Turnover rates provide an indication of trends in the employment profile of the department. The following tables provide a summary of turnover rates by salary band and critical occupations (see definition in notes below). Table 3.5.1 Annual turnover rates by salary band for the period 1 April 2015 and 31 March 2016 Salary band Number of

employees at beginning of period-1 April 2015

Appointments and transfers into the department

Terminations and transfers out of the department

Turnover rate

Lower skilled (Levels 1-2), Permanent 353 11 19 5.4 Skilled (Levels 3-5), Permanent 359 3 10 2.8 Highly skilled production (Levels 6-8), Permanent 1143 21 33 2.9 Highly skilled supervision (Levels 9-12), Permanent 341 4 7 2.1 Senior Management Service Band A, Permanent 35 0 1 2.9 Senior Management Service Band B, Permanent 13 0 0 0 Senior Management Service Band C, Permanent 3 0 1 33.3 Senior Management Service Band D, Permanent 1 0 0 0 Contract (Levels 1-2), Permanent 1 0 0 0 Contract (Levels 6-8), Permanent 5 2 0 0 Contract (Levels 9-12), Permanent 19 10 1 5.3 Contract (Band C), Permanent 0 1 0 0 Contract (Band D), Permanent 1 0 0 0 TOTAL 2 274 52 72 3.2



!!

- 93 -&

Table 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2015 and 31 March 2016 Critical occupation Number of

employees at beginning of period-April 2015



Turnover rate

Administrative related, Permanent 786 8 26 3.3 Architects town and traffic planners, Permanent 5 1 0 0 Auxiliary and related workers, Permanent 23 0 3 13 Cartographers and surveyors, Permanent 1 0 0 0 Civil engineering technicians, Permanent 5 0 0 0 Cleaners in offices workshops hospitals etc., Permanent 344 2 19 5.5 Client inform clerks(switchb recept inform clerks), Permanent 3 0 0 0 Communication and information related, Permanent 8 0 0 0 Engineering sciences related, Permanent 2 2 0 0 Engineers and related professionals, Permanent 99 5 1 1 Finance and economics related, Permanent 2 0 0 0 Financial and related professionals, Permanent 80 0 2 2.5 Financial clerks and credit controllers, Permanent 151 1 2 1.3 Head of department/chief executive officer, Permanent 1 0 0 0 Human resources & organisat developm & relate prof, Permanent 8 0 0 0 Human resources clerks, Permanent 27 0 0 0 Human resources related, Permanent 26 0 1 3.8 Legal related, Permanent 9 0 0 0 Library mail and related clerks, Permanent 3 0 0 0 Logistical support personnel, Permanent 1 12 0 0 Material-recording and transport clerks, Permanent 1 0 0 0



!!

- 94 -&

Critical occupation Number of employees at beginning of period-April 2015



Turnover rate

Messengers porters and deliverers, Permanent 10 0 1 10 Motor vehicle drivers, Permanent 2 0 0 0 Other administrat & related clerks and organisers, Permanent 243 0 3 1.2 Other administrative policy and related officers, Permanent 2 0 0 0 Other occupations, Permanent 244 10 5 2 Quantity surveyors & rela prof not class elsewhere, Permanent 1 0 0 0 Risk management and security services, Permanent 5 0 0 0 Secretaries & other keyboard operating clerks, Permanent 33 11 1 3 Security guards, Permanent 133 0 6 4.5 Senior managers, Permanent 15 0 1 6.7 Trade/industry advisers & other related profession, Permanent 1 0 1 100 TOTAL 2 274 52 72 3.2

The table below identifies the major reasons why staff left the department. Table 3.5.3 Reasons why staff left the department for the period 1 April 2015 and 31 March 2016 Termination Type Number % of Total

Resignations Percentage of Total Employment

Total Total Employment

Death, Permanent 21 29.2 0.9 72 2274 Resignation, Permanent 19 26.4 0.8 72 2274 Transfers, Permanent 1 1.4 0 72 2274 Discharged due to ill health, Permanent 3 4.2 0.1 72 2274 Retirement, Permanent 27 37.5 1.2 72 2274 Other, Permanent 1 1.4 0 72 2274 TOTAL 72 100 3.2 72 2274



!!

- 95 -&

Table 3.5.4 Promotions by critical occupation for the period 1 April 2015 and 31 March 2016 Occupation Employees

1 April 2015

Promotions to another salary level

Salary level promotions as a % of employees by occupation

Progressions to another notch within a salary level

Notch progression as a % of employees by occupation

Administrative related 786 18 2.3 605 77 Architects town and traffic planners 5 0 0 2 40 Auxiliary and related workers 23 0 0 21 91.3 Cartographers and surveyors 1 0 0 1 100 Civil engineering technicians 5 0 0 3 60 Cleaners in offices workshops hospitals etc. 344 0 0 12 3.5 Client inform clerks(switchb recept inform clerks) 3 0 0 0 0 Communication and information related 8 2 25 2 25 Engineering sciences related 2 0 0 0 0 Engineers and related professionals 99 0 0 68 68.7 Finance and economics related 2 0 0 1 50 Financial and related professionals 80 2 2.5 43 53.8 Financial clerks and credit controllers 151 0 0 15 9.9 Head of department/chief executive officer 1 0 0 0 0 Human resources & organisat developm & relate 8 1 12.5 6 75



!!

- 96 -&

Occupation Employees 1 April 2015


Salary level promotions as a % of employees by occupation


Notch progression as a % of employees by occupation

prof Human resources clerks 27 1 3.7 22 81.5 Human resources related 26 2 7.7 21 80.8 Legal related 9 0 0 7 77.8 Library mail and related clerks 3 0 0 2 66.7 Logistical support personnel 1 1 100 0 0 Material-recording and transport clerks 1 0 0 1 100 Messengers porters and deliverers 10 0 0 6 60 Motor vehicle drivers 2 0 0 2 100 Other administrat & related clerks and organisers 243 0 0 221 90.9 Other administrative policy and related officers 2 0 0 1 50 Other occupations 244 2 0.8 51 20.9 Quantity surveyors & rela prof not class elsewhere 1 0 0 1 100 Risk management and security services 5 0 0 5 100 Secretaries & other keyboard operating clerks 33 4 12.1 17 51.5 Security guards 133 1 0.8 99 74.4 Senior managers 15 0 0 4 26.7 Trade/industry advisers & other related profession 1 0 0 0 0 TOTAL 2 274 34 1.5 1239 54.5



!!

- 97 -&

Table 3.5.5 Promotions by salary band for the period 1 April 2015 and 31 March 2016 Salary Band Employe

es 1 April 2015


Salary bands promotions as a % of employees by salary level


Notch progression as a % of employees by salary bands

Lower skilled (Levels 1-2), Permanent 353 0 0 3 0.8 Skilled (Levels 3-5), Permanent 359 0 0 150 41.8 Highly skilled production (Levels 6-8), Permanent 1 143 7 0.6 813 71.1 Highly skilled supervision (Levels 9-12), Permanent 341 23 6.7 236 69.2 Senior management (Levels 13-16), Permanent 52 4 7.7 37 71.2 Contract (Levels 1-2), Permanent 1 0 0 0 0 Contract (Levels 6-8), Permanent 5 0 0 0 0 Contract (Levels 9-12), Permanent 19 0 0 0 0 Contract (Levels 13-16), Permanent 1 0 0 0 0 TOTAL 2 274 34 1.5 1 239 54.5

3.6. Employment Equity Table 3.6.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March 2016 Occupational category

Male Female Total

African Coloured Indian White African Coloured Indian White Legislators, senior officials and managers, Permanent 7 0 0 0 8 0 0 1 16 Professionals, Permanent 125 0 0 1 125 0 0 1 252 Technicians and associate 354 0 0 5 443 1 0 3 806



!!

- 98 -&

Occupational category

Male Female Total

African Coloured Indian White African Coloured Indian White professionals, Permanent Clerks, Permanent 162 0 0 0 301 1 0 2 466 Service and sales workers, Permanent 107 1 0 0 24 0 0 0 132 Plant and machine operators and assemblers, Permanent 2 0 0 0 0 0 0 0 2 Elementary occupations, Permanent 311 0 0 0 271 0 0 0 582 TOTAL 1 068 1 0 6 1 172 2 0 7 2 256

Table 3.6.2 Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2016 Occupational band

Male Female Total African Coloured Indian White African Coloured Indian White

Top Management, Permanent 3 0 0 0 1 0 0 0 4 Senior Management, Permanent 30 0 0 1 18 0 0 1 50 Professionally qualified and experienced specialists and mid-management, Permanent 193 1 0 2 153 0 0 2 351 Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 514 0 0 0 604 2 0 3 1123 Semi-skilled and discretionary decision 182 0 0 0 187 0 0 0 369



!!

- 99 -&

Occupational band


making, Permanent Unskilled and defined decision making, Permanent 128 0 0 0 197 0 0 0 325 Contract (Top Management), Permanent 1 0 0 0 1 0 0 0 2 Contract (Professionally qualified), Permanent 14 0 0 3 9 0 0 1 27 Contract (Skilled technical), Permanent 3 0 0 0 2 0 0 0 5 TOTAL 1 068 1 0 6 1 172 2 0 7 2 256

Table 3.6.3 Recruitment for the period 1 April 2015 to 31 March 2016 Occupational band


Professionally qualified and experienced specialists and mid-management, Permanent 1 0 0 0 3 0 0 0 4 Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 11 0 0 0 10 0 0 0 21 Semi-skilled and discretionary decision making, Permanent 1 0 0 0 2 0 0 0 3 Unskilled and defined 3 0 0 0 8 0 0 0 11



!!

- 100 -&

Occupational band


decision making, Permanent Contract (Top Management), Permanent 1 0 0 0 0 0 0 0 1 Contract (Professionally qualified), Permanent 6 0 0 1 3 0 0 0 10 Contract (Skilled technical), Permanent 0 0 0 0 2 0 0 0 2 TOTAL 23 0 0 1 28 0 0 0 52

Table 3.6.4 Promotions for the period 1 April 2015 to 31 March 2016 Occupational band


Senior Management, Permanent 24 0 0 1 16 0 0 0 41 Professionally qualified and experienced specialists and mid-management, Permanent 134 1 0 0 122 0 0 2 259 Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 326 0 0 0 491 1 0 2 820 Semi-skilled and discretionary decision making, Permanent 112 0 0 0 38 0 0 0 150 Unskilled and defined decision 1 0 0 0 2 0 0 0 3



!!

- 101 -&

Occupational band


making, Permanent TOTAL 597 1 0 1 669 1 0 4 1 273

Table 3.6.5 Terminations for the period 1 April 2015 to 31 March 2016 Occupational band


Top Management, Permanent 0 0 0 0 1 0 0 0 1 Senior Management, Permanent 0 0 0 0 1 0 0 0 1 Professionally qualified and experienced specialists and mid-management, Permanent 6 0 0 0 1 0 0 0 7 Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 18 0 0 0 15 0 0 0 33 Semi-skilled and discretionary decision making, Permanent 9 0 0 0 1 0 0 0 10 Unskilled and defined decision making, Permanent 7 0 0 0 12 0 0 0 19 Contract (Professionally qualified), Permanent 1 0 0 0 0 0 0 0 1 TOTAL 41 0 0 0 31 0 0 0 72



!!

- 102 -&

Table 3.6.6 Disciplinary action for the period 1 April 2015 to 31 March 2016 Disciplinary action

Male Female Total

African Coloured Indian White African Coloured Indian White RWOPS 2 0 0 0 2 0 0 0 4

Fraud 2 0 0 0 2 0 0 0 4

Absenteeism 0 0 0 0 1 0 0 0 1

Table 3.6.7 Skills development for the period 1 April 2015 to 31 March 2016 Occupational category

Male Female Total

African Coloured Indian White African Coloured Indian White Legislators, senior officials and managers

117 0 0 1 146 0 0 0 264

Professionals 66 0 0 0 63 0 0 0 129 Technicians and associate professionals

63 0 0 0 227 1 0 0 290

Clerks 152 0 0 0 244 0 0 396 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

62 0 0 0 52 0 0 0 114

Total 460 0 0 0 732 0 0 0 1 193

Employees with disabilities

0 1 0 0 3 0 0 0 4

3.7. Signing of Performance Agreements by SMS Members All members of the SMS must conclude and sign performance agreements within specific timeframes. Information regarding the signing of performance agreements by SMS members, the reasons for not complying within the prescribed timeframes and disciplinary steps taken is presented here.



!!

- 103 -&

Table 3.7.1 Signing of Performance Agreements by SMS members as on 31 May 2015 SMS Level Total number

of funded SMS posts

Total number of SMS members

Total number of signed performance agreements

Signed performance agreements as % of total number of SMS members


Salary Level 16 1 - - Salary Level 15 3 3 100 100 Salary Level 14 12 12 100 100 Salary Level 13 35 35 100 100 Total 51 51 100 100

Table 3.7.2 Reasons for not having concluded Performance agreements for all SMS members as on 31 March 2016 Reasons Not applicable

Table 3.7.3 Disciplinary steps taken against SMS members for not having concluded Performance agreements as on 31 March 2016 Reasons Not applicable

3.8. Performance Rewards To encourage good performance, the department has granted the following performance rewards during the year under review. The information is presented in terms of race, gender, disability, salary bands and critical occupations (see definition in notes below). Table 3.8.1 Performance Rewards by race, gender and disability for the period 1 April 2015 to 31 March 2016 Race and Gender

Beneficiary Profile Cost Number of beneficiaries

Number of employees

% of total within group

Cost (R’000)

Average cost per employee

African, Female 626 1 164 53.8 5,921 9,459 African, Male 557 1 062 52.4 5,362 9,627 Coloured, Female 2 2 100 17 8,441 Coloured, Male 1 1 100 18 18,314 Total Blacks, Female 628 1 166 53.9 5,938 9,456 Total Blacks, Male 558 1 063 52.5 5,381 9,643 White, Female 4 7 57.1 78 19,533 White, Male 1 6 16.7 13 13,139 Employees with a disability 7 14 50 78 11,162 TOTAL 1 198 2 256 53.1 11,488 9,590



!!

- 104 -&

Table 3.8.2 Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2015 to 31 March 2016 Salary band

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

Number of beneficiaries

Number of employees

% of total within salary bands

Total Cost (R’000)


Lower skilled (Levels 1-2) 44 325 13.5 128 2,909

128

Skilled (Levels 3-5) 142 369 38.5 524 3,690

524

Highly skilled production (Levels 6-8) 757 1123 67.4 6,056 8,000

6,056

Highly skilled supervision (Levels 9-12) 247 351 70.4 4,602 18,632

4,602

Contract (Levels 6-8) 1 5 20 7 7,000

7

Contract (Levels 9-12) 1 27 3.7 15 15,000

15

Abnormal Appointment 0 1 505 0 0 0

0

TOTAL 1 192 3 705 32.2 11,332 9,507 11332

Table 3.8.3 Performance Rewards by critical occupation for the period 1 April 2015 to 31 March 2016 Critical occupation


Number of employees

% of total within occupation



Administrative related 588 764 77 6,240 10,612 Architects town and traffic planners 2 6 33.3 36 18,000 Auxiliary and related workers 22 21 104.8 154 7,000 Cartographers and surveyors 0 1 0 0 0 Civil engineering technicians 1 5 20 37 37,000 Cleaners in offices workshops hospitals 59 326 18.1 186 3,153



!!

- 105 -&

Critical occupation


Number of employees




etc. Client inform clerks(switchb recept inform clerks) 0 3 0 0 0 Communication and information related 5 9 55.6 55 11,000 Engineering sciences related 1 4 25 7 7,000 Engineers and related professionals 32 103 31.1 707 22,094 Finance and economics related 1 1 100 26 26,000 Financial and related professionals 44 78 56.4 660 15,000 Financial clerks and credit controllers 16 151 10.6 168 10,500 Head of department/chief executive officer 0 1 0 0 0 Human resources & organisat developm & relate prof 7 8 87.5 160 22,857 Human resources clerks 24 26 92.3 271 11,292 Human resources related 26 27 96.3 460 17,692 Legal related 7 9 77.8 138 19,714 Library mail and related clerks 2 3 66.7 24 12,000 Logistical support personnel 1 14 7.1 22 22,000 Material-recording and transport clerks 1 1 100 7 7,000 Messengers porters and deliverers 7 8 87.5 39 5,571 Motor vehicle drivers 2 2 100 14 7,000 Other administrat & related clerks and organisers 190 236 80.5 1,160 6,105 Other administrative policy and related officers 2 2 100 27 13,500 Other occupations 38 254 15 278 7,316 Quantity surveyors & rela prof not class elsewhere 0 1 0 0 0



!!

- 106 -&

Critical occupation


Number of employees




Risk management and security services 4 5 80 66 16,500 Secretaries & other keyboard operating clerks 19 46 41.3 162 8,526 Security guards 96 127 75.6 359 3,740 Senior managers 1 14 7.1 25 25,000 TOTAL 1 198 2 256 53.1 11,488 9,589

Table 3.8.4 Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2015 to 31 March 2016 Salary band

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

Number of beneficiaries

Number of employees

% of total within salary bands



Band A 5 36 13.9 129 25,800 39,294 Band B 1 14 7.1 26 26,000 15,294 Band C 0 4 0 0 0 0 Band D 0 2 0 0 0 0 TOTAL 6 56 10.7 155 25,833.3 54,588

3.9. Foreign Workers The tables below summarise the employment of foreign nationals in the department in terms of salary band and major occupation. Table 3.9.1 Foreign workers by salary band for the period 1 April 2015 and 31 March 2016 Salary band 01 April 2015 31 March 2016 Change

Number % of total Number % of total Number % Change Lower skilled 0 0 0 0 0 0

Highly skilled production (Lev. 6-8)

0 0 0 0 0 0

Highly skilled supervision (Lev. 9-12)

0 0 0 0 0 0

Contract (Levels 9-12) 3 100 4 100 1 100 TOTAL 3 100 4 100 1 100



!!

- 107 -&

Table 3.9.2 Foreign workers by major occupation for the period 1 April 2015 and 31 March 2016 Major occupation

01 April 2015 31 March 2016 Change Number % of

total Number % of total Number % Change

Professionals and managers 3 100 4 100 1 100 TOTAL 3 100 4 100 1 100

3.10. 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 3.10.1 Sick leave for the period 1 January 2015 to 31 December 2016 Salary band Total

days % Days with Medical certification

Number of Employees using sick leave

% of total employees using sick leave

Average days per employee

Estimated Cost (R’000)

Lower skilled (Levels 1-2) 511 99 73 8.9 7 207 Skilled (Levels 3-5) 465 93.1 82 10 6 281 Highly skilled production (Levels 6-8) 2 543 79.9 345 42.1 7 2,877 Highly skilled supervision (Levels 9-12) 1 698 77.7 256 31.3 7 3,417 Senior management (Levels 13-16) 170 80.6 26 3.2 7 576 Contract (Levels 1-2) 53 49.1 27 3.3 2 13 Contract (Levels 6-8) 4 100 1 0.1 4 4 Contract (Levels 9-12) 46 93.5 9 1.1 5 79

TOTAL 5

490 82 819 100 7 7,454

Table 3.10.2 Disability leave (temporary and permanent) for the period 1 January 2015 to 31 December 2016 Salary band Total

days % Days with Medical certification

Number of Employees using disability leave

% of total employees using disability leave



Lower skilled (Levels 1-2) 8 100 2 5.6 4 3 Skilled (Levels 3-5) 14 100 1 2.8 14 9



!!

- 108 -&

Salary band Total days

% Days with Medical certification

Number of Employees using disability leave

% of total employees using disability leave



Highly skilled production (Levels 6-8) 288 100 18 50 16 334 Highly skilled supervision (Levels 9-12) 136 100 14 38.9 10 263 Senior management (Levels 13-16) 6 100 1 2.8 6 20 TOTAL 452 100 36 100 13 629

The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service. Table 3.10.3 Annual Leave for the period 1 January 2015 to 31 December 2016 Salary band Total days taken Number of

Employees using annual leave

Average per employee

Lower skilled (Levels 1-2) 5 780 298 19 Skilled (Levels 3-5) 6 909 344 20 Highly skilled production (Levels 6-8) 18 894.09 913 21 Highly skilled supervision (Levels 9-12) 8 893 350 25 Senior management (Levels 13-16) 1 265 53 24 Contract (Levels 1-2) 357 81 4 Contract (Levels 6-8) 72 4 18 Contract (Levels 9-12) 195 15 13 TOTAL 42 365.09 2 058 21

Table 3.10.4 Capped leave for the period 1 January 2015 to 31 December 2016 Salary band Total days of

capped leave taken

Number of Employees using capped leave

Average number of days taken per employee

Average capped leave per employee as on 31 March 2019

Highly skilled production (Levels 6-8) 66 8 8 90 Highly skilled supervision (Levels 9-12) 20 4 5 90 Senior management (Levels 13-16) 1 1 1 58



!!

- 109 -&

TOTAL 87 13 7 88

The following table summarise payments made to employees as a result of leave that was not taken. Table 3.10.5 Leave payouts for the period 1 April 2015 and 31 March 2016 Reason Total

amount (R’000)

Number of employees

Average per employee (R’000)

Capped leave payouts on termination of service for 2015/16 2,669 55 48,527 Current leave payout on termination of service for 2015/16 168 7 , TOTAL 2,837 62 45,758

3.11. HIV/AIDS & Health Promotion Programmes Table 3.11.1 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

None Candle lighting ceremony Voluntary counselling and testing Distribution of condoms Referrals to specialist

Table 3.11.2 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.

X Ms#K.A.#Maibele#

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

X Employee#wellness#division#

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.

X HIV#and#Aids#programme#Diseases#management##Health#and#productivity#management##SHERQ(# Safety# heath# environment# Risk#quality)##

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

X The Labour Management Forum (LMF) is comprised of unions and management and discusses HIV and AIDS issues. Occupational Health and Safety custodian is Mr Matlala M and the safety



!!

- 110 -&

Question Yes No Details, if yes of the committee and the stakeholder(s) that they represent.

representatives are: 1. Ms Sekhaolelo Happy 2. Ms Mothapo Makoma 3. Mr Thobejane Carl 4. Ms Maremane Phuti

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.

X HIV and AIDS Policy

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

X Employee Assistance Programme provides counselling to these employees. HIV Counselling and Testing (HCT) HIV and AIDS awareness programmes Pamphlets on HIV and AIDS and TB management are distributed to employees. Information sharing on HIV and AIDS is shared with employees Condom distribution

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

X ! 40 employees were screened for HIV (14 male and 23 females)

! 174 employees were screened for TB

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

X An operational plan is developed and it is monitored through monthly and quarterly reports which are also submitted to the Department of Public Service and Administration.

3.12. Labour Relations Table 3.12.1 Collective agreements for the period 1 April 2015 and 31 March 2016 Total number of Collective agreements None The following table summarises the outcome of disciplinary hearings conducted within the department for the year under review. Table 3.12.2 Misconduct and disciplinary hearings finalised for the period 1 April 2015 and 31 March 2016 Outcomes of disciplinary hearings Number % of total Correctional counselling 00 0% Verbal warning 00 0% Written warning 00 0% Final written warning 05 50% Suspended without pay 04 40% Fine 01 10% Demotion 00 0%

Dismissal 00 0% Not guilty 00 0%



!!

- 111 -&

Case withdrawn 00 0% Total 10 100%

Table 3.12.3 Types of misconduct addressed at disciplinary hearings for the period 1 April 2015 and 31 March 2016 Type of misconduct Number % of total RWOPS 04 44% Fraud 04 44% Absenteeism 01 11% Total 09 100%

Table 3.12.4 Grievances logged for the period 1 April 2015 and 31 March 2016 Grievances Number % of Total Number of grievances resolved 75 96% Number of grievances not resolved 03 4% Total number of grievances lodged 78 100%

Table 3.12.5 Disputes logged with Councils for the period 1 April 2015 and 31 March 2016 Disputes Number % of Total Number of disputes upheld 02 3% Number of disputes dismissed 01 1.3% Total number of disputes lodged 78 4%

Table 3.12.6 Strike actions for the period 1 April 2015 and 31 March 2016 Total number of persons working days lost None

Total costs working days lost None

Amount recovered as a result of no work no pay (R’000) None

Table 3.12.7 Precautionary suspensions for the period 1 April 2015 and 31 March 2016 Number of people suspended 01 Number of people who’s suspension exceeded 30 days 01 Average number of days suspended 40 Cost of suspension(R’000) R 22,066.05



!!

- 112 -&

3.13. Skills development This section highlights the efforts of the department with regard to skills development. Table 3.13.1 Training needs identified for the period 1 April 2015 and 31 March 2016 Occupational category

Gender Number of employees as at 1 April 2015

Training needs identified at start of the reporting period Learnerships Skills

Programmes & other short courses

Other forms of training

Total

Legislators, senior officials and managers

Female 123 0 530 0 530 Male 138 0 276 0 276

Professionals Female 18 0 80 0 80 Male 14 0 71 0 71

Technicians and associate professionals

Female 345 7 480 0 487 Male

275 9 200 0 209

Clerks Female 256 39 800 50 889 Male 376 40 373 59 472

Service and sales workers

Female 40 0 0 0 0 Male 129 0 0 0 0


Female 0 0 0 0 0 Male 0 0 0 0 0


Female 0 0 0 0 0 Male 0 0 0 0 0


Female 0 0 0 0 0 Male 2 0 2 0 2


Female 231 0 530 0 530 Male 164 0 276 0 276

Sub Total Female 1 013 46 2 420 50 2 516 Male 1 098 49 1 198 59 1 306

Total 2 111 95 3 618 109 3822



!!

- 113 -&

Table 3.13.2 Training provided for the period 1 April 2015 and 31 March 2016 Occupational category

Gender Number of employees as at 1 April 2015

Training provided within the reporting period Learnerships Skills

Programmes & other short courses

Other forms of training

Total

Legislators, senior officials and managers

Female 123 0 146 0 146 Male

138 0 118 0 118

Professionals Female 18 0 33 0 33 Male 14 0 26 0 26

Technicians and associate professionals

Female 345 7 212 0 219 Male

275 9 47 0 56

Clerks Female 256 39 175 50 264 Male 376 40 107 59 206

Service and sales workers

Female 40 0 0 0 0 Male 129 0 0 0 0


Female 0 0 0 0 0 Male 0 0 0 0 0


Female 0 0 0 0 0 Male 0 0 0 0 0


Female 0 0 0 0 0 Male 2 0 0 0 0


Female 231 0 52 0 52 Male 164 0 62 0 62

Sub Total Female 1 013 46 618 50 1 727 Male 1 098 49 360 59 1 566

Total 2111 95 978 109 3293

3.14. Injury on duty The following tables provide basic information on injury on duty. Table 3.14.1 Injury on duty for the period 1 April 2015 and 31 March 2016 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



!!

- 114 -&

3.15. Utilisation of Consultants The following tables relates information on the utilisation of consultants in the department. In terms of the Public Service Regulations “consultant’ means a natural or juristic person or a partnership who or which provides in terms of a specific contract on an ad hoc basis any of the following professional services to a department against remuneration received from any source:

(a) The rendering of expert advice; (b) The drafting of proposals for the execution of specific tasks; and (c) The execution of a specific task which is of a technical or intellectual nature, but

excludes an employee of a department. Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2015 and 31 March 2016

Project title Total number of consultants that

worked on project

Duration (work days)

Contract value in Rand

Appointment of Service Providers for Cleaning Services and Installation and Maintenance of Hygienic Equipment at 12-20th Avenue, Industrial, 28 Market Street Building and Hensa Towers.

1 12 months R2 181 054,80

Appointment of Service Providers (Constructors) for construction of Low Cost Houses (RDP's) for 2015-16 FY

61 R637M

Appointment of Service Provider to render Security Services at Hensa Towers, 28 Market Street, 12-20th Avenue Industria and 70 Copper

1 36 months R 20 701 967.26

Appointment of Service Provider to render Security Services at Altoostyd Lephalale Offices

1 36 months R9 445 115.51

Appointment of Service Provider to conduct Geotechnical Investigation, Design and Install Engineering services for 2015/16 FY

7 R69,045,831

Appointment of Service Providers ( contractors) for Rectification Services at

1 R6,403,342



!!

- 115 -&

Project title Total number of consultants that

worked on project

Duration (work days)

Contract value in Rand

Mokopane ext. 20 for 2015/16 FY Appointment of Service Providers ( contractors) for construction of Rectification Programmes for 2015/16 FY

11 R43,500,000

Appointment of Service Provider (Contractors) for construction of Lephalale Community Residential Units (CRU) for 2015-16 FY

1 R298,205,995

Proposed appointment of Housing Development Agency as implementing agency for specified Human Settlements Projects

1 R 552 129 916

Addition of two (2) Human Settlement Special Projects for implementation by the Housing Development Agency

1 R22,825,000

Appointment of Risima Housing Finance Corporation Ltd for Implemetation and Administration of Finance Linked Individual Subsidy Programme in Limpopo for a period o three (3) years (2015-16 until 2017-18 FY)

1 R29 million

!

Total number of projects

Total individual consultants

Total duration

Work days

Total contract value in Rand

11 projects 87 consultants

Table 3.15.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2015 and 31 March 2016



!!

- 116 -&

Project title Percentage ownership by HDI

groups

Percentage management by

HDI groups

Number of consultants from HDI groups that work on the project

Appointment of Service Providers for Cleaning Services and Installation and Maintenance of Hygienic Equipment at 12-20th Avenue, Industrial, 28 Market Street Building and Hensa Towers.

100% 100% 100%

Appointment of Service Providers (Constructors) for construction of Low Cost Houses (RDP's) for 2015-16 FY

100% 100% 100%

Appointment of Service Provider to render Security Services at Hensa Towers, 28 Market Street, 12-20th Avenue Industria and 70 Copper

100% 100% 100%

Appointment of Service Provider to render Security Services at Altoostyd Lephalale Offices

100% 100% 100%

Appointment of Service Provider to conduct Geotechnical Investigation, Design and Install Engineering services for 2015/16 FY

100% 100% 100%

Appointment of Service Providers ( contractors) for Rectification Services at Mokopane ext. 20 for 2015/16 FY

100% 100% 100%

Appointment of Service Providers ( contractors) for construction of Rectification Programmes for 2015/16 FY

100% 100% 100%

Appointment of Service Provider (Contractors) for construction of Lephalale Community Residential Units (CRU) for 2015-16 FY

100% 100% 100%



!!

- 117 -&

Project title Percentage ownership by HDI

groups

Percentage management by

HDI groups

Number of consultants from HDI groups that work on the project

Proposed appointment of Housing Development Agency as implementing agency for specified Human Settlements Projects

0% 0% 0%

Addition of two (2) Human Settlement Special Projects for implementation by the Housing Development Agency

0% 0% 0%

Appointment of Risima Housing Finance Corporation Ltd for Implemetation and Administration of Finance Linked Individual Subsidy Programme in Limpopo for a period o three (3) years (2015-16 until 2017-18 FY)

0% 0% 0%

#3.16. Severance Packages Table 3.16.1 Granting of employee initiated severance packages for the period 1 April 2015 and 31 March 2016 Salary band Number of

applications received

Number of applications referred to the MPSA

Number of applications supported by MPSA

Number of packages approved by department

Lower skilled (Levels 1-2)

0 0 0 0

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

0 0 0 0

Highly skilled supervision(Levels 9-12)

0 0 0 0

Senior management (Levels 13-16)

0 0 0 0

Total 0 0 0 0



!!

- 118 -&

!

PART E: FINANCIAL INFORMATION



!!

- 119 -&

REPORT OF THE AUDITOR GENERAL

Report of the auditor-general to the Limpopo provincial legislature on vote no. 11 Department of Co-operative Governance, Human Settlements and Traditional Affairs

Report on the financial statements

Introduction

1. I have audited the financial statements of the Department of Co-operative Governance, Human Settlements and Traditional Affairs set out on pages 125 to 208, which comprise the appropriation statement, the statement of financial position as at 31 March 2016, the statement of financial performance, statement of changes in net assets, and cash flow statement for the year then ended, as well as the notes, comprising a summary of significant accounting policies and other explanatory information.

Accounting officer’s responsibility for the financial statements

2. The accounting officer is responsible for the preparation and fair presentation of these financial statements in accordance with the Modified Cash Standard (MCS) prescribed by the National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and the Division of Revenue Act of South Africa, 2015 (Act No. 1 of 2015) (DoRA), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-general’s responsibility

3. My responsibility is to express an opinion on the financial statements based on my audit. I conducted my audit in accordance with International Standards on Auditing. Those standards require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the department’s preparation 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



!!

- 120 -&

department’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Department of Co-operative Governance, Human Settlements and Traditional Affairs as at 31 March 2016 and its financial performance and cash flows for the year then ended, in accordance with the MCS and the requirements of the PFMA and DoRA.

Emphasis of matter

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

Material underspending of conditional grant

8. As disclosed in the appropriation statement, the department has materially underspent the Human Settlements Development Grant to the amount of R463 580 000.

Additional matter

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

Unaudited supplementary schedules

10. The supplementary information set out on pages 198 to 208 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.



!!

- 121 -&

Report on other legal and regulatory requirements

11. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) and the general notice issued in terms thereof, I have a responsibility to report findings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report, non-compliance with legislation and 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

12. I performed procedures to obtain evidence about the usefulness and reliability of the reported performance information for the following selected programmes presented in the annual performance report of the department for the year ended 31 March 2016:

• Programme 2: Integrated sustainable human settlement pages 32 to 39

• Programme 3: Co-operative governance on pages 40 to 47

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

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

15. I did not identify any material findings on the usefulness and reliability of the reported performance information for the following programmes:

• Programme 2: Integrated sustainable human settlement

• Programme 3: Co-operative governance



!!

- 122 -&

Additional matter matters

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

Achievement of planned targets

17. Refer to the annual performance report on pages 32 to 39 and 40 to 47 for information on the achievement of the 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 x to xx of this report.

Adjustment of material misstatements

18. I identified material misstatements in the annual performance report submitted for auditing on the reported performance information for Integrated Sustainable Human Settlement and Co-operative Governance programmes. As management subsequently corrected all the misstatements,! we did not raise any material findings on the usefulness and reliability of the reported performance information.

Unaudited supplementary schedules

19. The supplementary information set out on pages x to x does not form part of the annual performance report and is presented as additional information. We have not audited these schedule(s) and, accordingly, we do not express a conclusion on them.

Compliance with legislation

20. 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

21. The financial statements submitted for auditing were not in all respects prepared in accordance with the prescribed financial reporting framework as required by section 40(1)(b) of the PFMA.!



!!

- 123 -&

!

22. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework as required by section 40(1)(b) of the Public Finance Management Act. Material misstatements of disclosure items identified by the auditors in the submitted financial statement were subsequently corrected, resulting in the financial statements receiving an unqualified audit opinion.

Procurement and contract management

23. A person in the service of the department who had a private or business interest in contracts awarded by other government institutions failed to disclose such interest, as required by Treasury Regulation TR 16A8.4.

24. A quotation was awarded to a bidder who did not submit a declaration on whether they are employed by the state, which is prescribed in order to comply with Treasury regulation 16A8.3.

Expenditure management

25. The accounting authority did not take effective steps to prevent fruitless and wasteful expenditure, as required by section 51(1)(b)(ii) of the PFMA.

Internal control

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

Leadership

27. Oversight responsibility regarding financial and performance reporting and compliance and related internal controls were not adequately exercised by the Accounting Officer.

Financial and performance management

28. The financial statements and other information to be included in the annual report were not adequately reviewed for accuracy and completeness by the Accounting Officer

29. Compliance with laws and regulations was not adequately reviewed and monitored by the Accounting Officer.



!!

- 124 -&

Other reports

Audit-related services and special audits

30. The Auditor-General South Africa is performing an investigation at the request of the department. The investigation was initiated based on an allegation of the possible supply chain management irregularities on the acquisition of land in Tubatse. The investigation is still in progress and the outcome is not yet known.

31. The Office of the Premier Limpopo is performing a forensic audit based on allegations of possible supply chain management irregularities on the awarding of bids for the 2014-2015 financial year. The investigation is still in progress and the outcome is not yet known.

Polokwane

31 July 2016



!!

- 125 -&

ANNUAL FINANCIAL STATEMENTS

For the year ended 31 March 2016

##

##

#

LIMPOPO: CO-OPERATIVE GOVERNANCE, HUMAN SETTLEMENTS AND TRADITIONAL AFFAIRS

VOTE 11

ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016!

- 126 -!

Table of Contents

Appropriation Statement 3 Notes to the Appropriation Statement 25 Statement of Financial Performance 27 Statement of Financial Position 28 Statement of Changes in Net Assets 29 Cash Flow Statement 30 Notes to the Annual Financial Statements (including Accounting policies) 31 Annexures 66

LIMPOPO: CO-OPERATIVE GOVERNANCE, HUMAN SETTLEMENTS AND TRADITIONAL AFFAIRS VOTE 11

APPROPRIATION STATEMENT

for the year ended 31 March 2016 !

!

- 127 -!

Appropriation per programme

2015/16 2014/15


Shifting of Funds

Virement Final Appropriation

Actual Expenditure

Variance Expenditure as % of final appropriation

Final Appropriation

Actual Expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Programme 1. Administration 302 214 (80) 1 357 303 491 297 682 5 809 98.1% 275 016 272 946 2. Human Settlements 1 699 343 - 85 1 699 428 1 234 023 465 405 72.6% 923 829 676 932 3. Cooperative Governance

243 027 - (85) 242 942 240 738 2 204 99.1% 232 805 232 313

4. Traditional Institutional

443 208 - (1 357) 441 851 411 339 30 512 93.1% 342 044 341 498

Development Subtotal 2 687 792 (80) - 2 687 712 2 183 782 503 930 81.3% 1 773 694 1 523 689 Statutory Appropriation

1 822 80 - 1 902 1 902 - 100% 1 822 1 781

Members' remuneration 1 822 80 - 1 902 1 902 - 100% 1 822 1 781 TOTAL 2 689 614 - - 2 689 614 2 185 684 503 930 81.3% 1 775 516 1 525 470




!

- 128 -!

2015/16 2014/15 Final


Expenditure Final


Expenditure

TOTAL (brought forward) Reconciliation with statement of financial performance 2 689 614 1 775 516 ADD Departmental receipts 30 385 210 Actual amounts per statement of financial performance (total revenue)

2 719 999 1 775 726

ADD Actual amounts per statement of financial performance (total expenditure)

2 185 684 1 525 470

Appropriation per economic classification

2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure

Variance Expenditure

as % of final

appropriation

Final

Appropriation

Actual

expenditure

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

Economic classification

Current payments 1 008 171 (2 227) (1 925) 1 004 019 991 242 12 777 98.7% 926 002 922 299

Compensation of employees 846 101 - - 846 101 834 920 11 181 98.7% 772 426 771 677

Salaries and wages 751 662 471 - 752 133 741 217 10 916 98.5% 689 168 688 514

Social contributions 94 439 (471) - 93 968 93 703 265 99.7% 83 258 83 163

Goods and services 161 970 (2 227) (1 925) 157 818 156 224 1 594 99.0% 153 576 150 622

Administrative fees 806 - - 806 791 15 98.1% 1 697 1 697




!

- 129 -!


2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

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

Advertising 2 064 - - 2 064 2 061 3 99.8% 2 229 2 200

Minor assets 294 - - 294 255 39 86.6% 234 156

Audit costs: External 4 038 - - 4 038 4 034 4 99.9% 4 332 4 330

Bursaries: Employees 444 - - 444 444 - 100.0% 396 371

Catering: Departmental activities

946 - - 946 919 27 97.1% 1 058 1 030

Communication 10 045 - - 10 045 10 032 13 99.0% 10 562 10 525

Computer services 9 085 - - 9 085 9 081 4 100.0% 8 995 8 994

Consultants: Business and advisory services

12 740 (1 177) (5 380) 6 183 6 109 74 98.8% 13 117 11 337

Infrastructure and planning services

- - - - - - - 2 030 2 029

Legal services 8 778 - 3 455 12 233 12 213 20 99.8% 2 470 2 461

Contractors 6 825 - - 6 825 6 788 37 99.5% 6 733 6 657

Entertainment 394 - - 394 394 - 100.0% 292 292

Fleet services 5 064 - - 5 064 5 051 13 99.7% 5 473 5 433

Consumable supplies 449 - - 449 445 4 99.1% 557 483

Consumable: Stationery, printing and office supplies

4 728 - - 4 728 4 628 100 97.9% 6 535 6 502

Operating leases 39 271 - - 39 271 39 232 39 99.9% 36 196 36 082

Property payments 14 031 - - 14 031 14 021 10 99.9% 12 175 12 165




!

- 130 -!


2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

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

Transport provided: Departmental activity

- - - - - - - 11 11

Travel and subsistence 35 952 (1 050) - 34 902 33 820 1 082 96.9% 29 932 29 356

Training and development 1 326 - - 1 326 1 326 - 100% 2 893 2 886

Operating payments 1 920 - - 1 920 1 892 28 98.5% 1 937 1 922

Venues and facilities 2 770 - - 2 770 2 688 82 97.1% 3 722 3 703

Interest and rent on land 100 - - 100 98 2 98.0% - -

Interest 100 - - 100 98 2 98.0% - -

Transfers and subsidies 1 676 771 - 90 1 676 861 1 188 751 488 110 70.9% 839 006 593 857

Provinces and municipalities 1 848 - 138 1 986 1 936 50 97.5% 2 000 1 895

Municipalities 1 848 - 138 1 986 1 936 50 97.5% 2 000 1 895

Municipal bank accounts

1 848 - 138 1 986 1 936 50 97.5% 2 000 1 895

Departmental agencies and accounts

70 - (48) 22 - 22 - 1 260 1 260


70 - (48) 22 - 22 - 1 260 1 260

Non-profit institutions 78 317 - - 78 317 55 059 23 258 70.3% 3 156 2 863

Households 1 596 536 - - 1 596 536 1 131 756 464 780 70.9% 832 590 587 839

Social benefits 2 647 - - 2 647 2 619 28 98.9% 4 664 4 639




!

- 131 -!


2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

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

Other transfers to households

1 593 889 - - 1 593 889 1 129 137 464 752 70.8% 827 926 583 200

Payments for capital assets 4 672 - 1 835 6 507 3 507 3 000 53.9% 3 967 2 773

Machinery and equipment 4 672 - 1 835 6 507 3 507 3 000 53.9% 3 967 2 773

Transport equipment 1 163 - - 1 163 1 163 - 100% 1 064 1 064

Other machinery and equipment

3 509 - 1 835 5 344 2 344 3 000 43.9% 2 903 1 709

Payments for financial assets - 2 227 - 2 227 2 184 43 98.1% 6 541 6 541

TOTAL 2,689,614

-

- 2,689,614 2,185,684 503,930

81.3% 1 775 516 1 525 470




!

- 132 -!

Statutory Appropriation per economic classification 2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments 1822 80 - 1,902 1,902 - 100% 1,822 1,781

Compensation of employees 1,822 80 - 1,902 1,902 - 100% 1,822 1,781

Salaries and wages 1,565 80 - 1,645 1,645 - 100% 1,567 1,540

Social contributions 257 - - 257 257 - 100% 255 241

1,822 80 - 1,902 1,902 - 100% 1,822 1,781

Programme 1: ADMINISTRATION 2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

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

Sub programme

1. CORPORATE SERVICES 302 214 (80) 1 357 303 491 297 682 5 809 98.1% 275 016 272 946

Total for sub programmes 302 214 (80) 1 357 303 491 297 682 5 809 98.1% 275 016 272 946


Current payments 295 530 (730) 1 725 296 525 291 200 5 325 98.2% 263 846 262 723

Compensation of employee s 181 199 (80) (1 730) 179 389 174 507 4 882 97.3% 157 480 157 092

Salaries and wages 159 657 (80) (1 730) 157 847 153 150 4 697 97.0% 138 316 137 965




!

- 133 -!


Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

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

Social contributions 21 542 - - 21 542 21 357 185 99.1% 19 164 19 127

Goods and services 114 330 (650) 3 455 117 135 116 693 442 99.6% 106 366 105 631

Advertising 1 665 - - 1 665 1 662 3 99.8% 1 728 1 702

Minor assets 131 - - 131 96 35 73.5% 222 156


Bursaries: Employees 444 - - 444 444 - 100% 396 371


600 - - 600 581 19 96.8% 607 591

Communication 10 045 - - 10 045 10 032 13 99.9% 10 562 10 525

Computer services 9 085 - - 9 085 9 081 4 100% 8 995 8 994


1 728 - - 1 728 1 728 - 100% 180 119

Legal services 4 493 - 3 455 7 948 7 948 - 100% 2 468 2 459

Contractors 6 760 - - 6 760 6 723 37 99.5% 6 728 6 652

Entertainment 394 - - 394 394 - 100% 292 292

Fleet services 5 064 - - 5 064 5 051 13 99.7% 5 473 5 433

Consumable supplies 332 - - 332 332 - 100% 557 483


4 686 - - 4 686 4 594 92 98.0% 6 450 6 418






!

- 134 -!


Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

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

Travel and subsistence 8 843 (650) - 8 193 8 053 140 98.3% 6 108 5 976


Operating payments 538 - - 538 515 23 95.7% 581 574


Transfers and subsidies 3 487 - (368) 3 119 3 075 44 98.6% 4 691 4 586


Municipalities 1 781 - 138 1 919 1 918 1 99.9% 2 000 1 895


1 781 - 138 1 919 1 918 1 99.9% 2 000 1 895


70 - (48) 22 - 22 0% 1 260 1 260

Departmental agencies 70 - (48) 22 - 22 0% 1 260 1 260

Households 1 636 - (458) 1 178 1 157 21 98.2% 1 431 1 431

Social benefits 1 636 - (458) 1 178 1 157 21 98.2% 1 252 1 252


- - - - - - - 179 179

Payments for capital assets 3 197 - - 3 197 2 757 440 86.2% 2 617 1 775

Machinery and equipment 3 197 - - 3 197 2 757 440 86.2% 2 617 1 775



2 034 - - 2 034 1 594 440 78.4% 1 553 711




!

- 135 -!


Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

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

Payments for financial assets

- 650 - 650 650 - 100% 3 862 3 862

302 214 (80) 1 357 303 491 297 682 5 809 98.1% 275 016 272 946

1.1 SUB PROGRAMME 1 : CORPORATE SERVICES 2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure



Current payments 295 530 (730) 1 725 296 525 291 200 5 325 98.2% 263 846 262 723

Compensation of employee s 181 199 (80) (1 730) 179 389 174 507 4 882 97.3% 157 480 157 092

Salaries and wages 159 657 (80) (1 730) 157 847 153 150 4 697 97.0% 138 316 137 965


Goods and services 114 330 (650) 3 455 117 135 116 693 442 99.6% 106 366 105 631

Advertising 1 665 - - 1 665 1 662 3 99.8% 1 728 1 702

Minor assets 131 - - 131 96 35 73.5% 222 156





!

- 136 -!


Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure


Bursaries: Employees 444 - - 444 444 - 100% 396 371

Catering: Departmental activities 600 - - 600 581 19 96.8% 607 591

Communication 10 045 - - 10 045 10 032 13 99.9% 10 562 10 525

Computer services 9 085 - - 9 085 9 081 4 100% 8 995 8 994


1 728 - - 1 728 1 728 - 100% 180 119

Legal services 4 493 - 3 455 7 948 7 948 - 100% 2 468 2 459

Contractors 6 760 - - 6 760 6 723 37 99.5% 6 728 6 652

Entertainment 394 - - 394 394 - 100% 292 292

Fleet services 5 064 - - 5 064 5 051 13 99.7% 5 473 5 433

Consumable supplies 332 - - 332 332 - 100% 557 483


4 686 - - 4 686 4 594 92 98.0% 6 450 6 418







Transfers and subsidies 3 487 - (368) 3 119 3 075 44 98.6% 4 691 4 586





!

- 137 -!


Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure


Municipalities 1 781 - 138 1 919 1 918 1 99.9% 2 000 1 895


1 781 - 138 1 919 1 918 1 99.9% 2 000 1 895


70 - (48) 22 - 22 0% 1 260 1 260

Departmental agencies 70 - (48) 22 - 22 0% 1 260 1 260

Households 1 636 - (458) 1 178 1 157 21 98.2% 1 431 1 431

Social benefits 1 636 - (458) 1 178 1 157 21 98.2% 1 252 1 252


- - - - - - - 179 179

Payments for capital assets 3 197 - - 3 197 2 757 440 86.2% 2 617 1 775

Machinery and equipment 3 197 - - 3 197 2 757 440 86.2% 2 617 1 775



2 034 - - 2 034 1 594 440 78.4% 1 553 711

Payments for financial assets

- 650 - 650 650 - 100% 3 862 3 862

302 214 (80) 1 357 303 491 297 682 5 809 98.1% 275 016 272 946




!

- 138 -!

Programme 2: HUMAN SETTLEMENTS 2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

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

Sub programme

1. Housing Needs, Research and Planning

192 292 (19 166) - 173 126 171 659 1 467 99.2% 16 875 14 898

2. Housing Development , Implementation , Planning and Targets

1 467 225 19 450 - 1 486 675 1 027 312 459 363 69.1% 874 201 629 462

3. Housing Asset Management and Property Management

39 826 (284) 85 39 627 35 052 4 575 88.5% 32 753 32 572

Total for sub programmes 1 699 343 - 85 1 699 428 1 234 023 465 405 72.6% 923 829 676 932


Current payments 104 936 (400) - 104 536 103 980 556 99.5% 94 830 92 754

Compensation of employees 89 343 - - 89 343 88 918 425 99.5% 78 967 78 909

Salaries and wages 78 442 - - 78 442 78 099 343 99.6% 69 597 69 541


Goods and services 15 593 (400) - 15 193 15 062 131 99.1% 15 863 13 845

Administrative fees 790 - - 790 776 14 98.2% 1 690 1 690

Advertising 77 - - 77 77 - 100% 56 56

Minor assets 137 - - 137 137 - 100% - -




!

- 139 -!


Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

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


36 - - 36 35 1 98.5% 265 262


1 789 - - 1 789 1 774 15 99.2% 2 834 1 167

Legal services 445 - - 445 445 - 100% 2 2

Contractors - - - - - - - 5 5


6 - - 6 6 - 100% - -

Operating leases 409 - - 409 409 - 100% 465 465

Property payments 28 - - 28 28 - 100% 21 21


- - - - - - - 11 11


Training and development - - - - - - - 32 32

Operating payments 300 - - 300 300 - 100% 376 372

Venues and facilities 439 - - 439 404 35 92.1% 796 781

Transfers and subsidies 1 594 151 - 85 1 594 236 1 129 433 464 803 70.8% 828 553 583 762

Provinces and municipalities 67 - - 67 18 49 26.9% - -

Municipalities 67 - - 67 18 49 26.9% - -


67 - - 67 18 49 26.9% - -

Non-profit institutions - - - - - - - 159 107




!

- 140 -!


Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

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

Households 1 594 084 - 85 1 594 169 1 129 415 464 754 70.8% 828 394 583 655

Social benefits 195 - 85 280 278 2 99.3% 647 634


1 593 889 - - 1 593 889 1 129 137 464 752 70.8% 827 747 583 021

Payments for capital assets 256 - - 256 210 46 81.9% 446 416

Machinery and equipment 256 - - 256 210 46 81.9% 446 416


256 - - 256 210 46 81.9% 446 416

Payments for financial assets - 400 - 400 400 - 100% - -

Total 1 699 343 - 85 1 699 428 1 234 023 465 405 72.6% 923 829 676 932

2.1 HOUSING NEEDS, RESEARCH AND PLANNING 2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure


Current payments 15 468 (400) - 15 068 14 931 137 99.1% 14 422 12 445 Compensation of employees 13 012 - - 13 012 12 897 115 99.1% 10 643 10 638 Salaries and wages 11 316 - - 11 316 11 237 79 99.3% 9 341 9 338




!

- 141 -!

2.1 HOUSING NEEDS, RESEARCH AND PLANNING 2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure


Social contributions 1 696 - - 1 696 1 660 36 97.9% 1 302 1 300 Goods and services 2 455 (400) - 2 055 2 034 21 99.0% 3 779 1 807 Catering: Departmental activities 7 - - 7 7 - 100% 112 112


- - - - - - - 1 655 -

Legal Services 444 - - 444 444 - 100% - -

Travel and subsistence 1 624 (400) - 1 224 1 204 20 98.3% 1 266 965

Training and development - - - - - - - 32 32


Venues and facilities 305 - - 305 305 - 100% 632 618

Transfers and subsidies 176 780 (19 166) - 157 614 156 304 1 310 99.2% 2 453 2 453

Households 176 780 (19 166) - 157 614 156 304 1 310 99.2% 2,453 2,453 Social benefits 74 - - 74 73 1 98.6% 57 57 Other transfers to households 176 706 (19 166) - 157 540 156 231 1 309 99.2% 2,396 2,396 Payments for capital assets 45 - - 45 24 21 53.9% - -

Machinery and equipment 45 - - 45 24 21 53.9% - -

Other machinery and equipment 45 - - 45 24 21 53.9% - -

Payments for financial assets - 400 - 400 400 - 100% - -

TOTAL 192 292 (19 166) - 173 126 171 659 1 467 99.2% 16,875 14,898

!




!

- 142 -!

2.2 SUB PROGRAMME 2: HOUSING DEVELOPMENT, IMPLEMENTATION AND TARGETS

2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure


Current payments 54 741 - - 54 741 54 436 305 99.4% 48 718 48 718 Compensation of employees 45 878 - - 45 878 45 610 268 99.4% 41 172 41 172 Salaries and wages 41 128 - - 41 128 40 894 234 99.4% 36 908 36 908 Social contributions 4 750 - - 4 750 4 716 34 99.3% 4 264 4 264 Goods and services 8 863 - - 8 863 8 826 37 99.6% 7 546 7 546 Advertising 45 - - 45 45 - 100% - -

Contractors - - - - - - - 5 5

Operating leases 409 - - 409 409 - 100% 465 465

Property payments 28 - - 28 28 - 100% 21 21

Travel and subsistence 8 293 - - 8 293 8 257 36 99.6% 6 876 6 876

Operating payments 87 - - 87 87 - 99.7% 179 179

Transfers and subsidies 1 412 433 19 450 - 1 431 883 972 825 459 058 67.9% 825 468 580 730

Households 1 412 433 19 450 - 1 431 883 972 825 459 058 67.9% 825 468 580 730 Social benefits 34 - - 34 33 1 97.1% 498 486 Other transfers to household 1 412 399 19 450 - 1 431 849 972 792 459 057 67.9% 824 970 580 244

Payments for capital assets 51 - - 51 51 - 99.4% 15 14

Machinery and equipment 51 - - 51 51 - 99.4% 15 14

Other machinery and equipment 51 - - 51 51 - 99.4% 15 14

TOTAL 1 467 225 19 450 - 1 486 675 1 027 312 459 363 69.1% 874 201 629 462




!

- 143 -!

2.3 SUB PROGRAMME 3: HOUSING ASSET MANAGEMENT AND PROPERTY MANAGEMENT 2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure


Current payments 34 728 - - 34 728 34 613 115 99.7% 31,690 31,591 Compensation of employees 30 453 - - 30 453 30 411 42 99.9% 27 152 27 099 Salaries and wages 25 999 - - 25 999 25 968 31 99.9% 23 348 23 295 Social contributions 4 454 - - 4 454 4 443 11 99.7% 3 804 3 804 Goods and services 4 275 - - 4 275 4 202 73 98.3% 4 538 4 492 Administrative fees 790 - - 790 776 14 98.2% 1,690 1 690 Advertising 32 - - 32 32 - 100% 56 56 Minor assets 137 - - 137 137 - 100% - -

Catering: Departmental activities 28 - - 28 28 - 100% 153 150


1 789 - - 1 789 1774 15 99.2% 1 179 1 167

Legal services 1 - - 1 1 - 100% 2 2

Consumable: stationery, printing and office supplies

6 - - 6 6 - 100% - -


- - - - - - - 11 11







!

- 144 -!

2.3 SUB PROGRAMME 3: HOUSING ASSET MANAGEMENT AND PROPERTY MANAGEMENT 2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure


Transfers and subsidies 4 938 (284) 85 4 739 304 4 435 6.4% 632 579

Provinces and municipalities 67 - - 67 18 49 26.9% - -

Municipalities 67 - - 67 18 49 26.9% - -

Municipal agencies and funds 67 - - 67 18 49 26.9% - -

Non-profit institutions - -- - - - - - 159 107

Households 4 871 (284) 85 4 672 286 4 386 6.1% 473 472

Social benefits 87 - 85 172 172 - 100% 92 91

Other transfers to households 4 784 (284) - 4 500 114 4 386 2.5% 381 381

Payments for capital assets 160 - - 160 135 25 84.1% 431 402

Machinery and equipment 160 - - 160 135 25 84.1% 431 402

Other machinery 160 - - 160 135 25 84.1% 431 402

TOTAL 39 826 (284) 85 39 627 35 052 4 575 88.5% 32 753 32 572

!

!

!

!




!

- 145 -!

Programme 3: CO-OPERATIVE GOVERNANCE 2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

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

Sub programme

Local Governance 180 205 1 505 3 050 184 760 183 107 1 653 99.1% 174 796 174 442

Development Planning 62 822 (1 505) (3 135) 58 182 57 631 551 99.1% 58 009 57 871

Total for sub programmes 243 027 - (85) 242 942 240 738 2 204 99.1% 232 805 232 313


Current payments 241 568 (1 177) (1 405) 238 986 238 567 419 99.8% 228 740 228 520

Compensation of employees 220 128 - 1 730 221 858 221 835 23 100% 203 792 203 697

Salaries and wages 188 487 471 1 730 190 688 190 672 16 100% 176 174 176 097

Social contributions 31 641 (471) - 31 170 31 163 7 97.9% 27 618 27 600

Goods and services 21 340 (1 177) (3 135) 17 028 16 634 394 97.7% 24 948 24 823

Administrative fees 16 - - 16 15 1 93.8% 7 7

Advertising 75 - - 75 75 - 100% 445 442

Minor assets 9 - - 9 4 5 47.1% 12 -



6 765 (1 177) (3 135) 2 453 2 396 57 97.7% 9 522 9 478


- - - - - - - 2 030 2 029

Legal services 2 629 - - 2 629 2612 17 99.4% - -




!

- 146 -!

Programme 3: CO-OPERATIVE GOVERNANCE 2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

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

Contractors 65 - - 65 65 - 100% - -

Consumable supplies 84 - - 84 84 - 100% - -


Training and development - - - - - - - 1 770 1 766



Interest and rent on land 100 - - 100 98 2 98% - -

Transfers and subsidies 520 - 85 605 605 - 100.0% 1 660 1 657

Households 520 - 85 605 605 - 100.0% 1 660 1 657

Social benefits 520 - 85 605 605 - 100.0% 1 660 1 657

Payments for capital assets 939 - 1 235 2 174 432 1 742 19.9% 806 537

Machinery and equipment 939 - 1 235 2 174 432 1 742 19.9% 806 537

Other machinery and equipment 939 - 1 235 2 174 432 1 742 19.9% 806 537

Payments for financial assets - 1 177 - 1 177 1 134 43 96.3% 1,599 1,599

Total 243 027 - (85) 242 942 240 738 2 204 99.1% 232 805 232 313




!

- 147 -!

3.1 LOCAL GOVERNANCE 2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure


Current payments 179 622 705 1 730 182 057 181 670 387 99.8% 172 602 172 517 Compensation of employees 166 467 1 505 1 730 169 702 169

680 22 99.9% 154 885 154 821

Salaries and wages 140 790 1 976 1 730 144 496 144 475 21 99.9% 132 907 132 846 Social contributions 25 677 (471) - 25 206 25 205 1 100% 21,978 21,975

Goods and services 13 154 (800) - 12 354 11 990 364 97.0% 17,717 17,696 Advertising - - - - - - 3 -

Minor assets 5 - - 5 - 5 - - -


76 - - 76 74 2 97.4% 53 53


2 987 (800) - 2 187 2 153 34 98.5% 8 782 8 780

Legal services 2 629 - - 2 629 2612 17 99.4% - -


Training and development - - - - - - - 1 770 1 766

Operating systems 675 - - 675 672 3 99.5% 611 609


Transfers and subsidies 315 - 85 400 400 - 100.0% 1 388 1 388

Households 315 - 85 400 400 - 100.0% 1 388 1 388

Social benefits 315 - 85 400 400 - 100.0% 1 388 1 388




!

- 148 -!

3.1 LOCAL GOVERNANCE 2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure


Payments for capital assets 268 - 1 235 1 503 237 1 266 15.8% 806 537

Machinery and equipment 268 - 1 235 1 503 237 1 266 15.8% 806 537

Other machinery and equipment 268 - 1 235 1 503 237 1 266 15.8% 806 537

Payments for financial assets - 800 - 800 800 - 100.0% - -

Total 180 205 1 505 3 050 184 760 183 107 1 653 99.1% 174 796 174 442




!

- 149 -!

3.2 DEVELOPMENT PLANNING

2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure


Current payments 61 947 (1 882) (3 135) 56 930 56 897 33 99.9% 56 138 56 003 Compensation of employees 53 661 (1 505) - 52 156 52 155 1 100% 48 907 48 876 Salaries and wages 47 696 (1 505) - 46 191 46 197 (6) 100% 43 267 43 251 Social contributions 5 964 - - 5 964 5 958 6 99.9% 5 640 5 625 Goods and services 8 186 (377) (3 135) 4 674 4 644 30 99.4% 7 231 7 127 Administrative fees 16 - - 16 15 1 93.8% 7 7 Advertising 75 - - 75 75 - 100% 442 442 Minor assets 4 - - 4 4 (1) 100% 12 - Catering: Departmental activities - - - - - - - 80 72


3 778 (377) (3 135) 266 243 23 91.4% 740 698


- - - - - - - 2 030 2 029

Contractors 65 - - 65 65 - 100% - -


Travel and subsistence 3 765 - - 3 765 3760 5 99.9% 3 326 3 286



Interest and rent on land 100 - - 100 98 2 98% - -




!

- 150 -!

3.2 DEVELOPMENT PLANNING 2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure


Transfers and subsidies 205 - - 205 205 - 100.0% 272 269

Households 205 - - 205 205 - 100.0% 272 269

Social benefits 205 - - 205 205 - 100.0% 272 269

Payments for capital assets 671 - - 671 195 476 29.1% - -

Machinery and equipment 671 - - 671 195 476 29.1% - -

Other machinery and equipment 671 - - 671 195 476 29.1% - -

Payments for financial assets - 377 - 377 334 43 88.6% 1 599 1 599

Total 62 822 (1 505) (3 135) 58 182 57 631 551 99.1% 58 009 57 871




!

- 151 -!

Programme 4: TRADITIONAL INSTITUTIONAL DEVELOPMENT

2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

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

Sub programmes

4.1 Traditional Institutional Administration

437 002 (785) (1 357) 434 860 404 415 30 445 93.0% 335 056 334 654

4.2 Administration of Houses of Traditional Leaders

6 206 785 - 6 991 6 924 67 99.0% 6 988 6 844

Total for sub programmes 443 208 - (1 357) 441 851 411 339 30 512 93.1% 342 044 341 498


Current payments 364 315 - (2 245) 362 070 355 593 6 477 98.2% 336 764 336 521

Compensation of employees 353 609 - - 353 609 347 758 5 851 98.3% 330 365 330 198

Salaries and wages 323 511 - - 323 511 317 651 5 860 98.2% 303 514 303 371

Social contributions 30 098 - - 30 098 30 107 (9) 100.0% 26 851 26 827

Goods and services 10 706 - (2 245) 8 461 7 835 626 92.6% 6 399 6 323

Advertising 247 - - 247 247 - 100% - -

Minor assets 19 - - 19 18 1 97.0% - -



2 459 - (2 245) 214 211 3 98.6% 581 573




!

- 152 -!

Programme 4: TRADITIONAL INSTITUTIONAL DEVELOPMENT 2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure

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

Legal services 1 211 - - 1 211 1 208 3 99.8% - -

Consumable supplies 27 - - 27 23 4 83.8% - -


42 - - 42 34 8 80.5% 85 84




Transfers and subsidies 78 613 - 288 78 901 55 638 23 263 70.5% 4 102 3 852


Households 296 - 288 584 579 5 99.1% 1 105 1 096

Social benefits 296 - 288 584 579 5 99.1% 1 105 1 096

Payments for capital assets 280 - 600 880 108 772 12.3% 98 45

Machinery and equipment 280 - 600 880 108 772 12.3% 98 45

Other machinery and equipment 280 - 600 880 108 772 12.3% 98 45

Payments for financial assets - - - - - - - 1 080 1 080

Total 443 208 - (1 357) 441 851 411 339 30 512 93.1% 342 044 341 498




!

- 153 -!

4.1 TRADITIONAL INSTITUTIONAL ADMIN

2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure


Current payments 358 109 (785) (2 245) 355 079 348 669 6 410 98.2% 330 660 330 501 Compensation of employees 349 425 (785) - 348 640 342 789 5 851 98.3% 325 843 325 758 Salaries and wages 319 714 (785) - 318 929 313 069 5 860 98.2% 299 353 299 271 Social contributions 29 711 - - 29 711 29 720 (9) 100.0% 26 490 26 487 Goods and services 8 684 - (2 245) 6 439 5 880 559 91.3% 4 817 4 743 Advertising 213 - - 213 213 - 100% - - Minor assets 2 - - 2 2 - 100% - -

Catering: Departmental activities 18 - - 18 18 - 97.8% 9 9 Consultants: Business and advisory services

2 453 - (2 245) 208 205 3 98.6% 581 573

Legal services 1 211 - - 1 211 1 208 3 99.8% - -



29 - - 29 29 - 100% 71 70




Transfers and subsidies 78 613 - 288 78 901 55 638 23 263 70.5% 4 057 3 815


Households 296 - 288 584 579 5 99.1% 1 060 1 059




!

- 154 -!

4.1 TRADITIONAL INSTITUTIONAL ADMIN 2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure


Social benefits 296 - 288 584 579 5 99.1% 1 060 1 059

Payments for capital assets 280 - 600 880 108 772 12.3% 11 10

Machinery and equipment 280 - 600 880 108 772 12.3% 11 10

Other machinery and equipment 280 - 600 880 108 772 12.3% 11 10

Payments for financial assets - - - - - - - 328 328

Total 437 002 (785) (1 357) 434 860 404 415 30 445 93.0% 335 056 334 654




!

- 155 -!

4.2 ADMINISTRATION OF HOUSES OF TRADITIONAL LEADERS

2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure


Current payments 6 206 785 - 6 991 6 924 67 99.0% 6 104 6 020 Compensation of employees 4 184 785 - 4 969 4 969 - 100% 4 522 4 440 Salaries and wages 3 797 785 - 4 582 4 582 - 100% 4 161 4 100 Social contributions 387 - - 387 387 - 100% 361 340 Goods and services 2 022 - - 2 022 1 955 67 96.7% 1 582 1 580 Advertising 34 - - 34 34 - 100% - - Minor assets 17 - - 17 16 1 94.9% - - Catering: Departmental activities 216 - - 216 211 5 97.7% 44 43 Consultants: Business and advisory services

6 - - 6 6 - 100% - -

Consumable supplies 10 - - 10 6 4 60.0% - - Consumable: Stationery, printing and office supplies

13 - - 13 5 8 38.9% 14 14

Travel and subsistence 1 271 - - 1 271 1 257 14 98.9% 1 213 1 212 Operating payments - - - - - - - 16 16 Venues and facilities 456 - - 456 420 36 92.2% 295 295 Transfers and subsidies - - - - - - - 45 37 Households - - - - - - - 45 37 Social benefits - - - - - - - 45 37

Payments for capital assets - - - - - - - 87 35




!

- 156 -!

4.2 ADMINISTRATION OF HOUSES OF TRADITIONAL LEADERS 2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


as % of final

appropriation

Final

Appropriation

Actual

expenditure


Machinery and equipment - - - - - - - 87 35

Other machinery and equipment - - - - - - - 87 35 Payments for financial assets - - - - - - - 752 752

Total 6 206 785 - 6 991 6 924 67 99.0% 6 988 6 844


VOTE 11

NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March 2016

!

COGHSTA 2015/16 AFS - 157 -!

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


Expenditure Variance

R’000 Variance as a

% of Final Appropriation

Programme 1 303 491 297 682 5 809 2% Programme 2 1 699 428 1 234 023 465 405 27% Programme 3 242 942 240 738 2 204 1% Programme 4 441 851 411 339 30 512 7% Variance in Programme 2 is as a result of disturbances caused by changes in housing development areas after approval in order to address the needs of communities as well as underperformance by contractors. The variance in Programme 4 is as a result of delays in delivery of vehicles purchased for Traditional Leaders.


VOTE 11

NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March 2016

!

COGHSTA 2015/16 AFS - 158 -!

4.2 Per economic classification Final


Expenditure Variance Variance as a

% of Final Appropriation

R’000 R’000 R’000 R’000 Current payments Compensation of employees 846 101 834 920 11 181 1% Goods and services 157 818 156 224 1 594 1% Interest and rent on land 100 98 2 2% Transfers and subsidies Provinces and municipalities 1 986 1 936 50 3% Departmental agencies and accounts

22 - 22 100%

Non-profit institutions 78 317 55 059 23 258 30% Households 1 596 536 1 131 756 464 780 29%

Payments for capital assets Machinery and equipment 6 507 3 507 3 000 46% Payments for financial assets 2 227 2 184 43 2%

Variance in Transfers and Subsidies is as a result of disturbances caused by changes in housing development areas after approval in order to address the needs of communities, underperformance by contractors as well as delays in delivery of vehicles purchased for Traditional Leaders. The variance in Payments for capital assets is as a result of delays in delivery of departmental vehicles purchased.

4.3 Per conditional grant

Final Appropriation Actual Expenditure Variance Variance as a % of Final

Appropriation R’000 R’000 R’000 Human Settlements Development Grant

1 591 889 1 128 309 463 580 29%

EPWP 2 000 829 1 171 59%

Variance in Human Settlements Development Grant is as a result of disturbances caused by changes in housing development areas after approval in order to address the needs of communities as well as the underperformance by contractors. The variance on the EPWP grant is as a result of delays in appointment of community workers.


STATEMENT OF FINANCIAL PERFORMANCE for the year ended 31 March 2016

!

COGHSTA 2015/16 AFS - 159 -!

Note 2015/16 2014/15 R'000 R'000 REVENUE

Annual appropriation 1 2 687 712 1 773 694 Statutory appropriation 2 1 902 1 822 Departmental revenue 3 30 385 210 TOTAL REVENUE 2 719 999 1 775 726 EXPENDITURE

Current expenditure Compensation of employees 4 834 920 771 677 Goods and services 5 156 224 150 622 Interest and rent on land 6 98 - Total current expenditure 991 242 922 299 Transfers and subsidies Transfers and subsidies 8 1 188 751 593 857 Total transfers and subsidies 1 188 751 593 857 Expenditure for capital assets Tangible assets 9 3 507 2 773 Total expenditure for capital assets 3 507 2 773 Payments for financial assets 7 2 184 6 541 TOTAL EXPENDITURE 2 185 684 1 525 470 SURPLUS FOR THE YEAR 534 315 250 256

Reconciliation of Net Surplus for the year

Voted funds 503 930 250 046 Annual appropriation 39 179 5 320 Conditional grants 464 751 244 726 Departmental revenue and NRF Receipts 14 30 385 210 SURPLUS FOR THE YEAR 534 315 250 256


STATEMENT OF FINANCIAL POSITION

as at 31 March 2016!

COGHSTA 2015/16 AFS - 160 -!

Note 2015/16 2014/15 R'000 R'000 ASSETS

Current assets

537 946 185 877

Cash and cash equivalents 10 423,539 114 217 Prepayments and advances 11 46 437 70 597 Receivables 12 67 970 1 063

Non-current assets

280 68 970

Receivables 12 280 68 970 TOTAL ASSETS 538 225 254 847 LIABILITIES

Current liabilities

536 977 249 523

Voted funds to be surrendered to the Revenue Fund 13 503 933 249 401 Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund

14 30 163 62

Payables 15 2 881 60 TOTAL LIABILITIES 536 977 249 523

NET ASSETS 1 248 5 324

Note 2015/16 2014/15 R'000 R'000 Represented by:

Capitalisation reserve - 4 274 Recoverable revenue 1248 1 050

TOTAL 1 248 5 324


CASH FLOW STATEMENT

for the year ended 31 March 2016!

COGHSTA 2015/16 AFS - 161 -!

Note 2015/16 2014/15 R'000 R'000 Capitalisation Reserves Opening balance 4 274 4 064 Transfers:

Movement in Operational Funds (4 274) 210 Closing balance - 4 274

Recoverable revenue Opening balance 1 050 1 059 Transfers: 198 (9)

Debts recovered (included in departmental receipts)

(195) (192)

Debts raised 393 183 Closing balance 1 248 1 050

TOTAL 1 248 5 324


STATEMENT OF CHANGES IN NET ASSETS

for the year ended 31 March 2016!!


CASH FLOW STATEMENT


COGHSTA 2015/16 AFS - 162 -!

Note 2015/16 2014/15 R'000 R’000 CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 2 724 964 1 777 740

Annual appropriated funds received 1.1 2 687 712 1 773 051 Statutory appropriated funds received 2 1 902 1 822 Departmental revenue received 3 19 413 2 830 Interest received 3.2 15 937 37 Net decrease in working capital 28 765 92 313 Surrendered to Revenue Fund (255 284) (407 714) Current payments (991 144) (922 299) Interest paid 6 (98) - Payments for financial assets (2 184) (6 541) Transfers and subsidies paid (1 188 751) (593 857) Net cash flow available from operating activities

16 316 268 (60 358)

CASH FLOWS FROM INVESTING ACTIVITIES Payments for capital assets 9 (3 507) (2 773) Proceeds from sale of capital assets 3.3 637 268 Net cash flows from investing activities (2 870) (2 505)

CASH FLOWS FROM FINANCING ACTIVITIES Increase/(decrease) in net assets (4 076) 201

Net cash flows from financing activities (4 076) 201

Net increase/(decrease) in cash and cash equivalents 309 322 (62 662)

Cash and cash equivalents at beginning of period 114 217 176 879

Cash and cash equivalents at end of period 10 423 539 114 217


CASH FLOW STATEMENT


COGHSTA 2015/16 AFS - 163 -!

Summary of significant accounting policies

The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. Management has concluded that the financial statements present fairly the department’s primary and secondary information.

The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation.

Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the financial statements and to comply with the statutory requirements of the Public Finance Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act.

1 Basis of preparation

The financial statements have been prepared in accordance with the Modified Cash Standard.

2 Going concern

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

3 Presentation currency

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

4 Rounding

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

5 Foreign currency translation

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

6 Comparative information

6.1 Prior period comparative information

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

6.2 Current year comparison with budget

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

7 Revenue

7.1 Appropriated funds

Appropriated funds comprises of departmental allocations as well as direct charges against the revenue


ACCOUNTING POLICIES



ACCOUNTING POLICIES


COGHSTA 2015/16 AFS - 164 -!

fund (i.e. statutory appropriation).

Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the statement of financial performance on the date the adjustments become effective.

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

7.2 Departmental revenue

Departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the relevant revenue fund, unless stated otherwise.

Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the statement of financial position.

7.3 Accrued departmental revenue

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

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

• the amount of revenue can be measured reliably.

The accrued revenue is measured at the fair value of the consideration receivable.

Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents.

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.


ACCOUNTING POLICIES


COGHSTA 2015/16 AFS - 165 -!

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 Aid Assistance

9.1 Aid assistance received

Aid assistance received in cash is recognised in the statement of financial performance when received. In-kind aid assistance is recorded in the notes to the financial statements on the date of receipt and is measured at fair value.

Aid assistance not spent for the intended purpose and any unutilised funds from aid assistance that are required to be refunded to the donor are recognised as a payable in the statement of financial position.

9.2 Aid assistance paid

Aid assistance paid is recognised in the statement of financial performance on the date of payment. Aid assistance payments made prior to the receipt of funds are recognised as a receivable in the statement of financial position.

10 Cash and cash 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.

11 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.

<Indicate when prepayments are expensed and under what circumstances.>

12 Loans and receivables

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


ACCOUNTING POLICIES


COGHSTA 2015/16 AFS - 166 -!

the department’s write-off policy.

13 Investments

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

14 Financial assets

14.1 Financial assets (not covered elsewhere)

A financial asset is recognised initially at its cost plus transaction costs that are directly attributable to the acquisition or issue of the financial.

At the reporting date, a department shall measure its financial assets at cost, less amounts already settled or written-off, except for recognised loans and receivables, which are measured at cost plus accrued interest, where interest is charged, less amounts already settled or written-off.

14.2 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.

15 Payables

Loans and payables are recognised in the statement of financial position at cost.

16 Capital Assets

16.1 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) may be 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.

16.2 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


ACCOUNTING POLICIES


COGHSTA 2015/16 AFS - 167 -!

measured at R1.


Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.

Biological assets are subsequently carried at fair value.

Subsequent expenditure that is of a capital nature 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.

16.3 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.


Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.

Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the intangible asset is recorded by another department/entity in which case the completed project costs are transferred to that department.

17 Provisions and Contingents

17.1 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.

17.2 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.

17.3 Contingent assets


ACCOUNTING POLICIES


COGHSTA 2015/16 AFS - 168 -!

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.

17.4 Commitments

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

18 Unauthorised 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.

19 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.

20 Irregular expenditure

Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the value of the irregular expenditure incurred unless it is impracticable to determine, in which case reasons therefor are provided in the note.

Irregular expenditure is removed from the note when it is either condoned by the relevant authority, transferred to receivables for recovery or not condoned and is not recoverable.

Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.

21 Changes in accounting policies, accounting estimates and errors

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

Changes in accounting estimates are applied prospectively in accordance with MCS requirements.


ACCOUNTING POLICIES


COGHSTA 2015/16 AFS - 169 -!

Correction of errors is applied retrospectively in the period in which the error has occurred in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the error. In such cases the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.

22 Events after the reporting date

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

23 Principal-Agent arrangements

The department is party to a principal-agent arrangement for [include details here]. In terms of the arrangement the department is the [principal / agent] and is responsible for [include details here]. All related revenues, expenditures, assets and liabilities have been recognised or recorded in terms of the relevant policies listed herein. Additional disclosures have been provided in the notes to the financial statements where appropriate.

24 Departures from the MCS requirements

[Insert information on the following: that management has concluded that the financial statements present fairly the department’s primary and secondary information; that the department complied with the Standard except that it has departed from a particular requirement to achieve fair presentation; and the requirement from which the department has departed, the nature of the departure and the reason for departure.

25 Capitalisation reserve

The capitalisation reserve comprises of financial assets and/or liabilities originating in a prior reporting period but which are recognised in the statement of financial position for the first time in the current reporting period. Amounts are recognised in the capitalisation reserves when identified in the current period and are transferred to the National/Provincial Revenue Fund when the underlying asset is disposed and the related funds are received.

26 Recoverable revenue

Amounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off.

27 Related party transactions

A related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party. Related party transactions are recorded in the notes to the financial statements when the transaction is not at arm’s length.

Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the department. The number of individuals and their full compensation is recorded in the notes to the financial statements.


ACCOUNTING POLICIES


COGHSTA 2015/16 AFS - 170 -!

28 Inventories (Effective from 1 April 2016)

At the date of acquisition, inventories are recorded at cost price in the notes to the financial statements

Where inventories are acquired as part of a non-exchange transaction, the cost of inventory is its fair value at the date of acquisition.

Inventories are subsequently measured at the lower of cost and net realisable value or the lower of cost and replacement value.

29 Public-Private Partnerships

Public Private Partnerships are accounted for based on the substance of the partnership. The transaction is accounted for as either capital assets, finance or operating leases in accordance with the relevant accounting policies.

A summary of the significant terms of the PPP agreement, the parties to the agreement, and the date of commencement thereof together with the description and nature of the concession fees received, the unitary fees paid, rights and obligations of the department are recorded in the notes to the financial statements.


NOTES TO THE ANNUAL FINANCIAL STATEMENTS


COGHSTA 2015/16 AFS - 171!

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:

1.2 Conditional grants

Note

2015/16 2014/15 R’000 R’000 Total grants received 46 1 593 889 827 104

2. Statutory Appropriation

2015/16 2014/15 R’000 R’000

Members’ remuneration 1 902 1 822 Total 1 902 1 822 Actual Statutory Appropriation received 1 902 1 822

The increase in the amount of Statutory Appropriation as compared to the previous year resulted from cost of living adjustment.

2015/16 2014/15 Final

Appropriation Actual Funds

Received

Funds not requested/not

received

Final Appropriation

Appropriation received

R’000 R’000 R’000 R’000 R’000 Programme 1 303 491 303 491 - 275 016 272 946 Programme 2 1 699 428 1 699 428 - 923 829 676 932 Programme 3 242 942 242 942 - 232 805 232 313 Programme 4 441 851 441 851 342 044 341 498

Total 2 687 712 2 687 712 - 1 773 694 1 523 689

The large increase of the grant as compared to the previous year is as a result of an amount of R559 500 000 which has been withheld by the National Treasury in 2014/2015 as a result of underspending. There were no funds withheld on 2015/16mmitmenfinancial year.




COGHSTA 2015/16 AFS - 172!

3. Departmental revenue Note

2015/16

2014/15

R’000

R’000 Sales of goods and services other than capital assets 3.1

1 638

1 273 Interest, dividends and rent on land 3.2

15 999

93 Sales of capital assets 3.3

637

268 Transactions in financial assets and liabilities 3.4 17 713

1 501 Total revenue collected 35 987 3 135 Less: Own revenue included in appropriation 14 5 602 2 925 Departmental revenue collected 30 385 210

The increase in revenue resulted from a payment/refund from Polokwane Housing Association for grant monies paid by the Department to them that they did not spent during 2005/6 and 2007/8 financial years and the interest thereof.

3.1 Sales of goods and services other than capital assets

Note 2015/16 2014/15 3 R’000 R’000 Sales of goods and services produced by the department

1 447 1 187

Sales by market establishment 250 255 Other sales 1 197 932

Sales of scrap, waste and other used current goods 191 86 Total 1 638 1 273

3.2 Interest, dividends and rent on land Note 2015/16 2014/15

3 R’000 R’000

Interest 15 937 37 Rent on land 62 56

Total 15 999 93

The increase in interest resulted from a payment/refund from Polokwane Housing Association for grant monies paid by the Department to them that they did not spent during 2005/6 and 2007/8 financial years and the interest thereof.




COGHSTA 2015/16 AFS - 173!

3.3 Sale of capital assets

Note 2015/16 2014/15

3 R’000 R’000

Tangible assets 637 268

Machinery and equipment 28.2 637 268

Total 637 268

The variance is as a result of the auction sale of redundant capital assets.

3.4 Transactions in financial assets and liabilities Note 2015/16 2014/15 3 R’000 R’000 Receivables 17 713 1 501 Total 17 713 1 501

The increase in revenue resulted from a payment/refund from Polokwane Housing Association for grant monies paid by the Department to them that they did not spent during 2005/6 and 2007/8 financial years and the interest thereof.

4. Compensation of employees 4.1 Salaries and Wages

Note 2015/16 2014/15 R’000 R’000 Basic salary 492 645 440 722 Performance award 11 518 10 818 Service Based 633 331 Compensative/circumstantial 21 130 14 135 Other non-pensionable allowances 215 292 222 508 Total 741 218 688 514

The increase in salaries is as result of cost of the living adjustment of staff salaries and the employment of new staff




COGHSTA 2015/16 AFS - 174!

4.2 Social contributions

Note 2015/16 2014/15 R’000 R’000 Employer contributions Pension 58 452 54 397 Medical 35 103 28 627 UIF 1 1 Bargaining council 146 138 Total 93 702 83 163 Total compensation of employees 834 920 771 677 Average number of employees 2 264 2 242

The increase in salaries is as result of cost of living adjustment of staff salaries and the employment of new staff

5. Goods and services Note 2015/16 2014/15 R’000 R’000 Administrative fees 791 1 695 Advertising 2 061 2 199 Minor assets 5.1 255 158 Bursaries (employees) 444 371 Catering 920 1 030 Communication 10 032 10 525 Computer services 5.2 9 081 8 994 Consultants: Business and advisory services 6 109 11 337 Infrastructure and planning services - 2 029 Legal services 12 213 2 461 Contractors 6 787 6 657 Entertainment 394 292 Audit cost – external 5.3 4 034 4 330 Fleet services 5 055 5 432 Consumables 5.4 5 069 6 984 Operating leases 39 232 36 081 Property payments 5.5 14 023 12 166 Transport provided as part of the departmental activities - 11 Travel and subsistence 5.6 33 819 29 358 Venues and facilities 2 687 3 704 Training and development 1 326 2 885 Other operating expenditure 5.7 1 892 1 922

Total 156 224 150 622

The increase is mainly as a result of more legal cases which had to be defended




COGHSTA 2015/16 AFS - 175!

5.1 Minor assets Note 2015/16 2014/15 5 R’000 R’000 Tangible assets 255 158

Machinery and equipment 255 158 Total 255 158

5.2 Computer services Note 2015/16 2014/15 5 R’000 R’000 SITA computer services 4 566 8 495 External computer service providers 4 515 499 Total 9 081 8 994

5.3 Audit cost – External Note 2015/16 2014/15 5 R’000 R’000 Regularity audits 4 034 4 330 Total 4 034 4 330

5.4 Consumables Note 2015/16 2014/15

5 R’000 R’000 Consumable supplies 445 482 Uniform and clothing 147 50 Other consumables 298 432 Stationery, printing and office supplies 4 624 6 502 Total 5 069 6 984

The department is implementing the austerity measures hence the decrease

5.5 Property payments

Note 2015/16 2014/15 5 R’000 R’000 Municipal services 3 090 2 421 Other 10 933 9 745 Total 14 023 12 166

5.6 Travel and subsistence

Note 2015/16 2014/15 5 R’000 R’000 Local 33 629 29 220 Foreign 190 138 Total 33 819 29 358




COGHSTA 2015/16 AFS - 176!

Increase is due to monitoring visits to various projects

5.7 Other operating expenditure

Note 2015/16 2014/15 5 R’000 R’000 Professional bodies, membership and subscription fees

404 364

Resettlement costs 131 267 Other 1 357 1 291 Total 1892 1 922

6. Interest and rent on land

Note 2015/16 2014/15

R’000 R’000

Interest paid 98 -

Total 98 -

Interest paid to supplier as a result of late payment.

7. Payments for financial assets

Note 2015/16 2014/15

R’000 R’000 Debts written off 7.1 2 184 6 541 Total 2 184 6 541

The reduction is as a result of less savings to fund the debts write off

7.1 Debts written off Note 2015/16 2014/15

7 R’000 R’000 Nature of debts written off Staff Debts 334 317 Fruitless and Wasteful 1850 6 224 Total 2 184 6 541




COGHSTA 2015/16 AFS - 177!

8. Transfers and subsidies 2015/16 2014/15 R’000 R’000 Note Provinces and municipalities 31 1 936 2 002 Departmental agencies and accounts Annex 1B - 1 260 Non-profit institutions Annex 1F 55 059 2 756 Households Annex 1G 1 131 756 587 389 Total 1 188 751 593 857

The increase is as a result of more awards of tenders that were made in the current financial year than the previous year as well as the increase in working tools that were acquired for the Traditional Leaders.

9. Expenditure for capital assets Note 2015/16 2014/15 9.1 R’000 R’000 Tangible assets 3 507 2 773 Total 3 507 2 773

9.1 Analysis of funds utilised to acquire capital assets – 2015/16 Voted funds Aid

assistance Total

R’000 R’000 R’000

Tangible assets 3 507 3 507

Machinery and equipment 3 507 - 3 507

Total 3 507 - 3 507

9.2 Analysis of funds utilised to acquire capital assets – 2014/15 Voted funds Aid

assistance Total

R’000 R’000 R’000 Tangible assets 2 773 2 773

Machinery and equipment 2 773 - 2 773 Total 2 773 - 2 773




COGHSTA 2015/16 AFS - 178!

10. Cash and cash equivalents Note 2015/16 2014/15 R’000 R’000 Consolidated Paymaster General Account 423 191 109 943 Disbursements 348 - Investments (Domestic) - 4 274 Total 423 539 114 217

There were no cash and cash equivalent balances held by the department that are not available for use.

There were no undrawn borrowing facilities that may be available for future operating activities and to settle capital commitments.

11. Prepayments and advances Note 2015/16 2014/15 R’000 R’000 Prepayments (Not expensed) 11.1 46 437 70 597 Total 46 437 70 597

The decrease in the amount is as a result of the recognition of expenditure incurred.

11.1 Prepayments (Not expensed) Note 2015/16 2014/15

11 R’000 R’000 Transfers and subsidies 46 437 70 597 Total 46 437 70 597

The decrease in the amount is as a result of recognition of expenditure incurred.

11.2 Prepayments (Expensed) Note 2015/16 2014/15

R’000 R’000 Transfers and subsidies 47 981 - Total 47 981 -




COGHSTA 2015/16 AFS - 179!

This was a payment of R23,8 million made to RISIMA in respect of implementation and facilitation of Finance Linked Individual Subsidies Programme(FLISP) and R24,2 million recognised in respect of prepayment made to Eskom for the Lephalale project which was made in prior years.

12. Receivables 2015/16 2014/15

Current Non-current

Total Current Non-current

Total

Note

R’000 R’000 R’000 R’000 R’000 R’000

Claims recoverable

12.1

Annex

4

591 - 591 235 437 672

Trade receivables

12.2 86 - 86 - 81 81

Recoverable expenditure

12.3 23 - 23 1 - 1

Staff debt 12.4 1 358 280 1 638 827 685 1 512 Fruitless and wasteful expenditure

12.6 65 656 - 65 656 - 67 506 67 506

Other debtors

12.5 255 - 255 - 261 261

Total 67 969 280 68 249 1 063 68 970 70 033

Movement is as a result of debt re-classification

12.1 Claims recoverable Note 2015/16 2014/15

12 R’000 R’000 National departments 106 - Provincial departments 48 235 Local governments 437 437 Total 591 672 12.2 Trade receivables

Note 2015/16 2014/15 12 R’000 R’000

Suppliers debts 86 81 Total 86 81




COGHSTA 2015/16 AFS - 180!

12.3 Recoverable expenditure (disallowance accounts) Note 2015/16 2014/15 12 R’000 R’000

Disallowance miscellaneous - 1 Salary Tax Debt 23 - Total 23 1 12.4 Staff debt

Note 2015/16 2014/15 12 R’000 R’000

Staff Debt 1 638 1 512 Total 1 638 1 512

12.5 Other debtors Note 2015/16 2014 /15 12 R’000 R’000

Sundry - 6 Ariyeng

255 255

Total 255 261

12.6 Fruitless and wasteful expenditure Note 2015/16 2014/15 12 R’000 R’000

Opening balance 67 506 73 730 Less amounts written off (1 850) (6 224) Total 65 656 67 506

The reduction is as result of less savings to fund the debts write off

12.7 Impairment of receivables

Note 2015/16 2014/15 R’000 R’000 Estimate of impairment of receivables Staff Debts 1 641 1 464 Fruitless and wasteful 65 656 67 506 Total 67 297 68 970

The reduction is as result of the debts write off.




COGHSTA 2015/16 AFS - 181!

13. Voted funds to be surrendered to the Revenue Fund Note 2015/16 2014/15 R’000 R’000 Opening balance 249 401 402 352 As restated 249 401 402 352 Transfer from statement of financial performance (as restated)

503 930 250 046

Voted funds not requested/not received 1.1 - (643) Paid during the year (249 398) (402 354) Closing balance 503 933 249 401

14. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund Note 2015/16 2014/15 R’000 R’000 Opening balance 62 2 287 As restated 62 2 287 Transfer from Statement of Financial Performance (as restated)

30 385 210

Own revenue included in appropriation 5 602 2 925 Paid during the year (5 886) (5 360) Closing balance 30 163 62

15. Payables – current Note 2015/16 2014/15

R’000 R’000

Advances received 15.1 435 5 Clearing accounts 15..2 2 446 55 Total 2 881 60

15.1 Advances received Note 2015/16 2014/15

15 R’000 R’000 Other institutions Annx

8B

435 5

Total 435 5 15.2 Clearing accounts

Note 2015/16 2014/15 15 R’000 R’000 Description Sal Income Tax 2 386 21




COGHSTA 2015/16 AFS - 182!

Sal Pension fund 27 6 Sal: Acb Recalls 33 28 Total 2 446 55

16. Net cash flow available from operating activities Note 2015/16 2014/15 R’000 R’000 Net surplus/(deficit) as per Statement of Financial Performance

534 315 250 256

Add back non cash/cash movements not deemed operating activities

(218 047) (310 614)

(Increase)/decrease in receivables – current 1 784 6 516 (Increase)/decrease in prepayments and advances 24 160 85 780 Increase/(decrease) in payables – current 2 821 17 Proceeds from sale of capital assets (637) (268) Expenditure on capital assets 3 507 2 773 Surrenders to Revenue Fund (255 284) (407 714) Voted funds not requested/not received - (643) Own revenue included in appropriation 5 602 2 925 Net cash flow generated by operating activities

316 268 (60 358)

17. Reconciliation of cash and cash equivalents for cash flow purposes Note 2015/16 2014/15 R’000 R’000 Consolidated Paymaster General account 423 191 109 943 Disbursements 348 Cash with commercial banks (Local) - 4 274 Total 423 539 114 217

The bank account with commercial bank has been closed during the year under review

The movement is caused by timing differences between processing and clearing. The last payment run was processed on the last day of the financial year hence clearance took place in 2016/17 financial year.




COGHSTA 2015/16 AFS - 183!

18. Contingent liabilities and contingent assets

18.1 Contingent liabilities Note 2015/16 2014/15 R’000 R’000 Liable to Nature Housing loan guarantees Employees Annex 3A 1 242 1 352 Claims against the department Annex 3B 316 740 314 658 Intergovernmental payables (unconfirmed balances)

Annex 5 3 123 146

Other Annex 3B 2 123 2 123 Total 323 228 318 279 18.2 Contingent assets Note 2015/16 2014/15

R’000 R’000 Nature of contingent asset Advance account administrator 2 820 2 820 Recovery of overpayment 98 98 Recovery of subsidised transport 30 30 Lost assets 64 - Total 3 012 2 948

19. Commitments Note 2015/16 2014/15 R’000 R’000 Current expenditure Approved and contracted 40 546 30 730 Approved but not yet contracted 12 026 1 496 52 572 32 226 Capital expenditure Approved and contracted 1 881 873 107 Approved but not yet contracted - 38 770 1 881 911 877 Total Commitments 54 453 944 103

Commitments valued at R18m are for longer than a year The decrease as compared to the prior year is as a result a change in the reporting requirements of housing projects which need not be disclosed in the current as per guide from National Treasury.




COGHSTA 2015/16 AFS - 184!

20. Accruals and payables not recognised

20.1 Accruals 2015/16 2014/15 R’000 R’000 Listed by economic classification

30 Days 30+ Days Total Total Transfers and subsidies 16 644 5 560 22 204 - Total 16 644 5 560 22 204 -

Note 2015/16 2014/15 R’000 R’000 Listed by programme level Programme 2 22 204 - Total 22 204 -

20.2 Payables not recognised 2015/16 2014/15 R’000 R’000 Listed by economic classification

30 Days 30+ Days Total Total Goods and services 2 470 1 438 3 908 6 088 Transfers and subsidies 23 581 1 346 24 927 10 616 Capital assets 5 035 355 5 390 - Total 31 086 3 139 34 225 16 704 Note 2015/16 2014/15 R’000 R’000 Listed by programme level Programme 1 3 733 5 759 Programme 2 24 988 10 779 Programme 3 86 146 Programme 4 5 418 20 Total 34 225 16 704

A large amount of housing claims were received during the end of the financial year and could not be paid.




COGHSTA 2015/16 AFS - 185!

A large amount of housing claims were received at the end of the financial year and could not be paid as well as well as invoices for purchase of tools of trade for Traditional Leaders.

Note 2015/16 2014/15 Included in the above totals are the following:

R’000 R’000

Confirmed balances with departments Confirmed balances with other government entities

Annex 5

Annex 5 -

22 050 20

5 Total 22 050 25

Confirmed balance of R10 187 in respect of Compensation of employees is not included above.

21. Employee benefits

Note 2015/16 2014/15 R’000 R’000 Leave entitlement 35 434 33 390 Service bonus (Thirteenth cheque) 19 788 18 158 Performance awards 13 174 12 135 Capped leave commitments 41 500 39 745 Other 58 277 41 245 Total 168 173 144 673

Leave entitlement includes negative values amounting to R351 497.70 (2015: R215 474.38)

Other includes Long service award of R911 (2015: R577) as well as pay progression provision of

R57 366 (2015: R40 668)

The Department is unable to determine the long term portion of Long service award




COGHSTA 2015/16 AFS - 186!

22. Lease commitments 22.1 Operating leases expenditure

2015/16

Specialised

military equipment

Land

Buildings and other

fixed structures

Machinery

and equipment

Total Not later than 1 year - - 40 722 337 41 059 Later than 1 year and not later than 5 years

- - 71 042 155 71 197

Total lease commitments - - 111 764 492 112 249

2014/15

Specialised

military equipment

Land

Buildings and other

fixed structures

Machinery

and equipment

Total

Not later than 1 year - - 37 517 354 37 871 Later than 1 year and not later than 5 years

- - 111 544 319 111 863

Total lease commitments - - 149 061 673 149 734 The Department is leasing buildings for office space from various suppliers with varying lease periods. The rental for the main office building expires on 31 October 2018.

The department does not have assets that are sub-leased




COGHSTA 2015/16 AFS - 187!

22.2 Finance leases expenditure**

2015/16

Specialised

military equipment

Land

Buildings and other

fixed structures

Machinery

and equipment

Total Not later than 1 year - - - 4 582 4 582 Later than 1 year and not later than 5 years

- - - 2 473 2 473

Total lease commitments

- - - 7 055 7 055

2014/15

Specialised

military equipment

Land

Buildings and other

fixed structures

Machinery

and equipment

Total Not later than 1 year - - - 1 272 1 272 Later than 1 year and not later than 5 years

- - - 190 190

Total lease commitments

- - - 1 462 1 462

The department is leasing cellphones with MTN and Vodacom with varying lease payments and lease periods which has been extended to different end dates.

The department does not have assets that are sub-leased

22.3 Operating lease revenue**

2015/16

Specialised

military equipment

Land

Buildings and other fixed structures

Machinery

and equipment

Total Not later than 1 year

- 73 - - 73

Later than 1 year and not later than 5 years

- 457 - - 457

Later than five years

- 437 - - 437

Total operating lease revenue receivable

- 968 - - 968




COGHSTA 2015/16 AFS - 188!

2014/15

Specialised

military equipment

Land

Buildings and other

fixed structures

Machinery

and equipment

Total Not later than 1 year - 19 - - 19 Total operating lease revenue receivable

- 19 - - 19

The Department is leasing the land to MTN for the tower erected. The lease agreement concluded during the year is for 10 years and it is ending on 30 June 2025.

23. Accrued departmental revenue Note 2015/16 2014/15 R’000 R’000 Interest, dividends and rent on land 3 270 12 090 Transactions in financial assets and liabilities 2 143 1 729 Other - 15 145 Total 5 413 28 964

The decrease is as a result of payment received from Polokwane Housing Association.

23.1 Analysis of accrued departmental revenue Note 2015/16 2014/15 R’000 R’000 Opening balance 28 964 27 496 Less: amounts received (29 262) (357) Add: amounts recognised 5 711 1 825 Closing balance 5 413 28 964

The decrease is as a result of payment received from Polokwane Housing Association




COGHSTA 2015/16 AFS - 189!

24. Irregular expenditure

24.1 Reconciliation of irregular expenditure Note 2015/16 2014/15 R’000 R’000 Opening balance 487 455 As restated 487 455 Add: Irregular expenditure – relating to current year - 32 Less: Prior year amounts condoned (7) - Closing balance 480 487

Analysis of awaiting condonation per age classification

Current year - 32 Prior years 480 455 Total 480 487 24.2 Details of irregular expenditure condoned Incident Condoned by (condoning authority) 2015/16

R’000 Employees who performed remunerative

7

work outside their employment HOD Total 7

The reduction is a result of the amount condoned during the year. The Department had not identified any new irregular expenditure for the year under review.




COGHSTA 2015/16 AFS - 190!

25. Fruitless and wasteful expenditure 25.1 Reconciliation of fruitless and wasteful expenditure Note 2015/16 2014/15 R’000 R’000 Opening balance 7 270 4 867 As restated 7 270 4 867 Fruitless and wasteful expenditure – relating to current year

102 2 403

Less Amounts resolved (4 787) - Fruitless and wasteful expenditure awaiting resolution

2 585 7 270

The overall decrease is as a result of resolved amount that was approved for write off during the year.

25.2 Analysis of awaiting resolution per economic classification

The overall decrease is as a result of resolved amount that was approved for write off during the year.

25.3 Analysis of current year’s fruitless and wasteful expenditure

2015/16 2014/15 R’000 R’000

Current 185 83

Transfers and Subsidies 2 400 7 187 Total 2 585 7 270

Incident Disciplinary steps

taken/criminal

procedings

2015/16

R’000

Cancellation flight In progress 1

Cancellation of Flight and accommodation In progress 3

Interest charged In progress 98

Total 102




COGHSTA 2015/16 AFS - 191!

26. Related party transactions

The Department had the following related party relationships during 2015/16

Provincial Department of Public Works Roads and Infrastructure

The Department utilised the office buildings belonging to the Provincial Department of Public Works, Roads and Infrastructure. The department of Public Works, Roads and Infrastructure does not charge the Department any rental for the use of buildings.

Internal Audit Services

The Department makes use of shared Internal Audit Services administered and paid by the Limpopo Provincial Treasury. The total hours and fees paid by the Provincial Treasury are 4 648 hours and R1 927 303.82 respectively.

Audit Committee

The department makes use of shared Audit Committee Services administered and paid by the Limpopo Provincial Treasury. The total hours and fees paid by the Provincial Treasury are 147 hours and R310 936.42 respectively.

27. Key management personnel No. of

Individuals 2015/16 2014/15

R’000 R’000 Political office bearers (provide detail below) 1 1 902 1781 Officials: -

Level 15 to 16 7 5 092 5 612 Level 14 (incl. CFO if at a lower level) 14 14 379 10 573

Family members of key management personnel - - -

Total 21 373 17 966

Key management personnel of the Department did not have family members working in the Department.




COGHSTA 2015/16 AFS - 192!

28. Movable Tangible Capital Assets MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016 Opening

balance Value

adjustments

Additions Disposals Closing Balance

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

81 275 - 3 592 (5 332) 79 535

Transport assets 23 038 - 1 163 (2 570) 21 631 Computer equipment 24 112 443 1 856 (1 642) 24 769 Furniture and office equipment 32 130 (30) 422 (1 067) 31 455 Other machinery and equipment 1 995 (413) 151 (53) 1 680 TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

81 275 - 3 592 (5 332) 79 535

The department incorrectly classified certain few items as computer equipment, furniture and equipment as well as other machinery and equipment

28.1 Additions ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016 Cash* Non-

cash** (Capital Work in

Progress current

costs and finance

lease payments)

Received current, not paid

(Paid current

year, received

prior year)

Total

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

3 507 85 - - 3 592

Transport assets 1 163 - - - 1 163 Computer equipment 1 777 79 - - 1 856 Furniture and office equipment

422 - - - 422




COGHSTA 2015/16 AFS - 193!


145 6 - - 151

TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS

3 507 85 - - 3 592

28.2 Disposals DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016

Sold for cash

Non-cash disposal

Total disposals

Cash Received

Actual R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT (5 219) (113) (5 332) 637 Transport assets (2 570) - (2 570) 637 Computer equipment (1 529) (113) (1 642) - Furniture and office equipment (1 067) - (1 067) - Other machinery and equipment (53) - (53) - TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS

(5 219) (113) (5 332) 637

28.3 Movement for 2014/15 MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015 Opening

balance Prior

period error

Additions Disposals Closing

Balance

R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 83 774 - 2 792 (5 291) 81 275 Transport assets 22 681 - 1 064 (707) 23 038 Computer equipment 25 475 - 1 192 (2 555) 24 112 Furniture and office equipment 32 745 - 514 (1 129) 32 130 Other machinery and equipment 2 873 - 22 (900) 1 995 TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

83 774 - 2 792 5 291 81 275




COGHSTA 2015/16 AFS - 194!

28.4 Minor assets MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2016

Specialised military

assets

Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

R’000 R’000 R’000 R’000 R’000 R’000 Opening balance

- 12 - 17 706 - 17 718

Additions - - - 262 - 262 Disposals - - - (406) - (406) TOTAL MINOR ASSETS

- 12 - 17 562 - 17 574


assets

Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

Number of minor assets at cost

- 1 - 9 850 - 9 851

TOTAL NUMBER OF MINOR ASSETS

- 1 - 9 850 - 9 851

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2015


assets

Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

R’000 R’000 R’000 R’000 R’000 R’000 Opening balance

- 12 - 19 099 - 19 111

Additions - - - 173 - 173 Disposals - - - (1 566) - (1 566) TOTAL MINOR ASSETS

- 12 - 17 706 - 17 718




COGHSTA 2015/16 AFS - 195!

29. Intangible Capital Assets MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016 Opening

balance Value

adjustments

Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000 SOFTWARE 2 415 - - - 2 415 TOTAL INTANGIBLE CAPITAL ASSETS

2 415 - - - 2 415




COGHSTA 2015/16 AFS - 196!

30. STATEMENT OF CONDITIONAL GRANTS RECEIVED

NAME

OF

DEPART

MENT

GRANT ALLOCATION SPENT 2014/15

Division of

Revenue Act/

Provincial

Grants

Roll Overs DORA

Adjustments

Other

Adjustments

Total

Available

Amount

received

by

department

Amount

spent by

department

Under /

(Overspending)

% of

available

funds

spent by

department

Division

of

Revenue

Act

Amount

spent by

departm

ent

R’000 R’000 R'000 R'000 R’000 R'000 R'000 R'000 % R’000 R’000 NDoH 1 283 877

308 012

- - 1 591 889 1 591 889

1 128 309

463 580

71% 825 603 583 021

EPWP 2 000 - - - 2 000 2 000 829

1 171

41% 2 144 -

TOTAL 1 285 877 308 012 -- - 1 593 889 1 593 889 1 129 138 464 751 70.1% 827 747 583 021

The conditional grants were appropriated in terms of Division of Revenue Act and deposited into the primary bank of the Province.




COGHSTA 2015/16 AFS - 197!

31. STATEMENT OF CONDITIONAL GRANTS AND OTHER TRANSFERS PAID TO MUNICIPALITIES

NAME OF MUNICIPALITY GRANT ALLOCATION TRANSFER

Division

of Revenue

Act

Roll Overs

Adjustments

Total Available

Actual Transfer

Funds Withheld

Re-allocations

by National Treasury or

National Department

R’000 R’000 R'000 R'000 R'000 %

Delta Investment 1 350 - - 1 350 1 322 -

Polokwane Municipality 590 - - 590 586 -

Bela-Bela Municipality 15 - - 15 9 -

Makhado Municipality 15 - - 15 9 -

Omtay property holdings 16 - - 16 10 -

Total 1 986 - - 1 986 1 936 -

The above amounts are rates and taxes paid to various municipalities and land lords.


ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS


COGHSTA 2015/16 AFS - 198!

ANNEXURE 1B STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS

DEPARTMENT/ AGENCY/ ACCOUNT

TRANSFER ALLOCATION TRANSFER 2014/15


Roll Overs

Adjustments

Total Available

Actual Transfer

% of Available funds

Transferred

Appropriation Act

R'000 R'000 R'000 R'000 R'000 % R'000 COM: LICENCES 22 -- - 22 - - 6 SKILLS DEVELOPMENT LEVY

- -- - - - - 1 254

22 - - 22 - - 1 260




COGHSTA 2015/16 AFS - 199!

ANNEXURE 1F STATEMENT OF TRANSFERS TO NON-PROFIT INSTITUTIONS

NON-PROFIT INSTITUTIONS

TRANSFER ALLOCATION EXPENDITURE 2014/15 Adjusted

Appropriation Act

Roll overs

Adjustments

Total Available

Actual Transfer

% of Available

funds transferred

Appropriation

Act

R'000 R'000 R'000 R'000 R'000 % R'000 Transfers NPI:OTH NON PROF(TRAD COUNCIL) 78 317 - - 78 317 55 059 70% 2 756 78 317 - - 78 317 55 059 70% 2 756 The increase was as a result of working tools that were acquired for the Traditional Leaders.




COGHSTA 2015/16 AFS - 200!

ANNEXURE 1G STATEMENT OF TRANSFERS TO HOUSEHOLDS

HOUSEHOLDS

TRANSFER ALLOCATION EXPENDITURE 2014/15 Adjusted

Appropriation Act

Roll Overs

Adjustments

Total Available

Actual Transfer

% of Available

funds Transferred

Appropriation

Act

R'000 R'000 R'000 R'000 R'000 % R'000 Transfers H/H EMPL S/BEN:LEAVE GRATUITY 2 632 - - 2 632 2 618 99% 4 639 H/H:BURSARIES(NON-EMPLOYEE) 15 - - 15 - - - H/H:CLAIMS AGAINST STATE(CASH)

- - - - - - 179

2 647 - - 2 647 2 618 - 4 818 Subsidies NDH-Housing Grant 1 283 877 308 012 - 1 591 889 1 128 309 71% 583 021 EPWP 2 000 - - 2 000 829 41% - 1 285 877 308 012 - 1 593 889 1 129 138 70.1% 583 021

Total 1 288 524 308 012 - 1 596 536 1 131 756 70.1% 587 839

More awards of tenders were made in the current year than the previous year.




COGHSTA 2015/16 AFS - 201!

ANNEXURE 1H STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED

NAME OF ORGANISATION NATURE OF GIFT, DONATION OR SPONSORSHIP 2015/16 2014/15

R’000 R’000

Received in kind Data Centries Wireless speaker woofer - 1 Xon Conference package and accommodation - 3 Mabone Construction 100 corporate USB - 8 Mabone Construction 100 Helmets - 2 Born to Protect Saches 1 - Born to Protect Soft drinks 7 - Mmaketse Project Management Soft drinks 16 - Subtotal 24 14




COGHSTA 2015/16 AFS - 202!

ANNEXURE 3A STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2014 – LOCAL

Guarantor institution

Guarantee in respect of

Original guaranteed

capital amount

Opening balance

1 April 2015

Guarantees draw

downs during the

year

Guarantees repayments/

cancelled/ reduced/ released

during the year

Revaluations Closing balance

31 March 2016

Guaranteed interest for year ended

31 March 2016

Realised losses not

recoverable i.e. claims

paid out

R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 Housing NP: Development Corp 8 060 1 310 110 (220) - 1 200 - - Standard Bank 477 42 - - - 42 - - Subtotal 8 537 1 352 110 (220) - 1 242 - - Other

Guarantees for three employees were released during the year.




COGHSTA 2015/16 AFS - 203!

ANNEXURE 3B STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016 Nature of Liability

Opening Balance 1 April 2015

Liabilities incurred

during the year

Liabilities paid/cancelled/reduce

d during the year

Liabilities recoverable

(Provide details

hereunder)

Closing Balance

31 March 2016

R’000 R’000 R’000 R’000 R’000 Claims against the department Mada Project CC 7 500 - - - 7 500 The Wilcass Group 77 000 - (7 000) - 70 000 Risimati Wilson Makhari 70 000 - - - 70 000 Raesetja Property Developers (PTY) LTD 4 541 - - - 4 541 Taset 13(Pty) Ltd 21 813 3 195 - - 25 008 Merifon Pty Ltd 52 000 - (52 000) - - Zedek Trading 312 cc 950 - - - 950 Send Them In 17 394 - - - 17 394 Rivoni Property Developers - 287 - - 287 Baile Civil Engineers & Contractors - 50 000 - - 50 000 Safintra Sa ( Pty) Ltd - 245 - - 245 Habakuk Magabutlane Shikwane - 4 000 (4 000) - - Wilcass Group CC - 1 200 - - 1 200 Various Traditional Leaders 63 460 6 900 (745) - 69 615 Subtotal 314 658 65 827 63 745 - 316 740 Other Underpayment of salaries 2 123 - - - 2 123 Subtotal 2 123 - - - 2 123 Total 316 781 65 827 63 745 - 318 863




COGHSTA 2015/16 AFS - 204 -!!

ANNEXURE 4 CLAIMS RECOVERABLE Government Entity Confirmed balance outstanding Unconfirmed balance

outstanding Total Cash in transit at year

end 2015/16 * 31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015 Receipt

date up to six (6)

working days after

year end

Amount

R’000 R’000 R’000 R’000 R’000 R’000 R’000 Department Limpopo Legislature - - - 58 - 58 - - Limpopo Health - - - 50 - 50 - -

Limpopo Premier - - - 121 - 121 - - Gauteng Mineral Resources

- - - 7 - 7 - -

Limpopo Education - - 17 - 17 - - -

KZN Human Settlements

31 - - - 31 - - -

National Department of Rural Development and Land Reform

- - 44 - 44 - - -

National Department of Co –Operative Governance

38 - 24 - 62 - - -

Subtotal 69 - 85 236 154 236 - - Other Government Entities

Musina Municipality - - 437 437 437 437 - - Subtotal - - 437 437 437 437 - - TOTAL 69 - 522 673 591 673 - -

!



for the year ended 31 March 2016

- 205 -!!

ANNEXURE 5 INTER-GOVERNMENT PAYABLES

GOVERNMENT ENTITY

Confirmed balance outstanding

Unconfirmed balance outstanding

TOTAL Cash in transit at year end 2015/16

31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015 Payment date up to six

(6) working

days before

year end

Amount

R’000 R’000 R’000 R’000 R’000 R’000 R’000

DEPARTMENTS

Current

Public Service and Administration

10 - - 10- 10 10 - -

Limpopo: Health Department

- 20 - - - 20 - -

Gauteng Province: Roads and Transport

- - - 47 - 47 - -

Limpopo: Transport - - 105 - 105 - - -

National Department of Justice

- - 2 063 - 2 063 - - -

National Department of Human Settlements

- - 84 - 84 - - -

SAPS - - 64 - 64 - - -

Subtotal 10 20 2 316 57 2 326 77 - -




- 206 -!!

OTHER GOVERNMENT ENTITIES

Current

Government Printing Works

- 5 48 89 48 94 - -

Housing Development Agency

22 050 - - - 22 050 31 March 2016

6 809

Telkom - - 467 - 467 - - -

SITA - - 292 - 292 - -

Subtotal 22 050 5 807 89 22 857 94 6 809

TOTAL 22 060 25 3 123 146 25 183 171 6 809

ANNEXURE 6 INVENTORIES

Inventory Note Quantity 2015/16 Quantity 2014/15

R’000 R’000 Opening balance 2 388 59 238 1 236 24 134 Add: Additions - Non-cash 2 028 53 364 2 388 59 238 Add/(Less): Adjustments (2 388) (59 238) (1 236) (24 134) Closing balance 2 028 53 364 2 388 59 238




- 207 -!!

The amount of R53 363 678 (2015: R59 238 465) is composed of houses which are not yet completed and are at the following stages:- Milestone Quantity Amount Quantity Amount

Wall plates constructed

837 25

814 1

091 32 863

Foundations Constructed 1

191 27

549 1

297 26 375

Total 2

028 53

364 2

388 59

238

Reconciliation of closing Balance Quantity Amount Quantity Amount

Housing Stock 2

028 53

364 2

388 59 238

Total 2

028 53

364 2

388 59

238




- 208 -

ANNEXURE 8B

INTER-ENTITY ADVANCES RECEIVED (note 15)

ENTITY Confirmed balance outstanding Unconfirmed balance outstanding

TOTAL

31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015

R’000 R’000 R’000 R’000 R’000 R’000

OTHER ENTITIES

MTN - 5 5 - 5 5

Traditional leaders(top-up) - - 430 - 430 -

Subtotal - 5 435 - 435 5

Total - 5 435 - 435 5

Date post:	06-Jun-2020
Category:	Documents
Upload:	others
View:	2 times
Download:	0 times

VOTE NO. 11 ANNUAL REPORT 2015/2016 FINANCIAL YEAR · Annual&Report&for&2015/16&Financial&Year&...

Documents