HERITAGE ANNUAL REPORT day 2013/14 - Provincial · PDF fileANNUAL REPORT 2013/14 ... Office of the Premier Building | Independence Avenue | Bhisho | Eastern Cape POSTAL ADDRESS

Date: Tuesday, 24 September 2013

Venue: Sisa Dukashe Stadium

Mdantsane

Time: 08:00

Keynote address: Deputy President Kgalema Motlanthe

HERITAGE day

Reclaiming, Restoring and Celebrating Our Living Heritage

Join us in celebrating the 50th anniversary of Mdantsane on this Heritage Day

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Provincial Customer CareContact Tel: 040 609 6128 / 6125 / 6127

National Anti-Corruption Hotline Number 0800 701 701

OFFICE OF THE PREMIER

ANNUAL REPORT2013/14

VOTE 1

2013/14ANNUAL REPORT

OFFICE OF THE PREMIER

VOTE 1

PHYSICAL ADDRESS Office of the Premier Building | Independence Avenue | Bhisho | Eastern Cape

POSTAL ADDRESSPrivate Bag X0047 | Bhisho | 5605 | Tel: 040 609 [email protected] | www.ecprov.gov.za

PR268/2014ISBN: 978-0-621-43032-5Title of Publication: Eastern Cape Office of the Premier, Annual Report 2013/14.

LIST OF ABBREVIATIONSALP Advanced Leadership Programme AMDP Advanced Management Development ProgrammeAPP Annual Performance PlanARP Annual Recruitment PlanASIDI Accelerated School Infrastructure Delivery Initiative BAUD Bar Coded Asset AuditingCEO Chief Executive OfficerCOBIT Control Objectives for Information and related TechnologyDEAET Department of Economic Development, Environmental Affairs and TourismDIRCO Department of International Relations and CooperationDLGTA Department of Local Government and Traditional AffairsDoE Department of EducationDPME Department of Performance Monitoring and EvaluationDPSA Department of Public Service and AdministrationDRDAR Department of Rural Development and Agrarian ReformDRPW Department of Roads and Public Works DSDSP Department of Social Development and Special ProgrammesDSRAC Department of Sport, Recreation, Arts and CultureECD Early Childhood DevelopmentECSECC Eastern Cape Socio Economic Consultative CouncilEDP Executive Leadership Development ProgrammeEU European UnionEXCO Executive CouncilFET Further Education and TrainingFMCMM Financial Management Capability Maturity ModelFOSAD Forum for South African Directors General FSD Frontline Service Delivery

GIS Geographic Information SystemsHoD Head of DepartmentHR Human ResourceHRD Human Resource DevelopmentHRM Human Resource ManagementICDP Integrated Community Development PlansICT Information Communication TechnologyIDP Integrated Development PlanIGR Intergovernmental RelationsMEC Member of the Executive Council MPAT Management Performance Assessment ToolP-MTSF Provincial Medium Term Strategic FrameworkNSFAS National Student Finance Aid Scheme OTP Office of the PremierPAIA Promotion of Access to Information ActPAJA Promotion of Administrative Justice ActPCF Premier’s Coordinating ForumPCMT Provincial Co-ordinating Monitoring TeamPERSAL Personnel Salary SystemPILIR Policy on Incapacity Leave and Ill-health RetirementPMDS Performance Management and Development SystemPPT Provincial Planning and Treasury SABC South African Broadcasting CorporationSABPP South African Board for Personnel PractitionersSALGA South African Local Government AssociationSCM Supply Chain ManagementSIP Strategic Infrastructure Project

FOREWORD BY THE EXECUTING AUTHORITY

Being the last financial year of the fourth term of administration, 2013/14 was dedicated to consolidating the gains made by the Provincial Administration in the previous financial years of the term. Included in the 2013/14 priority areas were: institutionalisation of governance and accountability systems in the Office of the Premier (OTP), enhancement of support to Provincial departments to improve compliance, enhancement of monitoring and evaluation of Government work.

The selfless efforts and commitment of all the role players in the Department, its entity, the Eastern Cape Socio Economic Consultative Council (ECSECC), have seen the attainment of our set priorities. I am, therefore, humbled and pleased to present Office of the Premier’s Annual Report for the 2013/14 financial year

Without the support and partnership of all of our stakeholders, the milestones here reported would not have been reached. My appreciation goes, also, to the Executive Council, Provincial Legislature, Portfolio Committee on the OTP, OTP’s Audit Committee, the Director-General, Management and Staff for their diligence and support in the endeavours to realise the goals we set ourselves for 2013/14.

Through the implementation of the 2014/15 - 2019/20 Strategic Plan, from the 2014/15 financial year onwards, we will continue to build on the substantial achievements highlighted in this Annual Report, in line with our ideal to make the Eastern Cape an even better place.

Mr. Phumulo Masualle Premier and Executing AuthorityDate: 15 September 2014

6Office of the Premier 2013/14 Annual Report

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TABLE CONTENTS

B4.4 Programme 4: Executive Support Services.......................73B5 Transfer Payments 83 B5.1 Transfer payments to public entities..................................84 B5.2 Transfer payments to all Organisations other than Public Entities............................................................84B6 Conditional Grants 84B7 Donor Funds 85 B7.1 Donor Funds Received......................................................85B8 Capital Investment 86 B8.1 Capital Investment and Maintenance.................................86 B8.2 Asset Management............................................................86

PART C: GOVERNANCE 90

C1 Introduction 90C2 Risk Management 90C3 Fraud and Corruption 91C4 Minimising Conflict of Interest 91C5 Code of Conduct 92C6 Health Safety and Environmental Issues 92C7 Portfolio Committees 92C8 Scopa Resolutions 93C9 Prior Modifications to Audit Reports 93C10 Internal Control Unit 93C11 Internal Audit and Audit Committees 93

PART A: GENERAL INFORMATION 12

A1 Report of the Accounting Officer 12A2 Statement of Responsibility and Conformation of Accuracy of the Annual Report 20A3 Strategic Overview 21 A3.1 Vision.................................................................................21 A3.2 Mission...............................................................................21 A3.3 Values................................................................................21A4 Legislative and other Mandates 21A5 Organisational Structure 23A6 Entities Reporting to the Executing Authority 24

PART B: PERFORMANCE INFORMATION 28

B1 Auditor General’s Report: Predetermined Objectives 28B2 Overview of Departmental Performance 29 B2.1 Service Delivery Environment............................................29 B2.2 Service Delivery Improvement Plan...................................31 B2.3 Organisational Environment...............................................35 B2.4 Key Policy Developments and Legislative Changes..........35B3 Strategic Outcome Oriented Goals 35B4 Performance Information by Programme 35 B4.1 Programme 1: Administration............................................35 B4.2 Programme 2: Institution Building and Transformation......53 B4.3 Programme 3: Policy and Governance..............................65

Office of the Premier 2013/14 Annual Report

TABLE CONTENTS


PART D: HUMAN RESOURCE MANAGEMENT 100

D1 Introduction 100D2 Overview of Human Resources 100D3 Human Resource Oversight Statistics 101

PART E: FINANCIAL INFORMATION 150

E1 Auditor General’s Report 150E2 Annual Financial Statements 153

PART A:

GENERAL INFORMATION

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PART A: GENERAL INFORMATION 12

A1 Report of the Accounting Officer 12A2 Statement of Responsibility and Conformation of Accuracy of the Annual Report 20A3 Strategic Overview 21 A3.1 Vision........................................................................ 21 A3.2 Mission..................................................................... 21 A3.3 Values....................................................................... 21A4 Legislative and other Mandates 21A5 Organisational Structure 23A6 Entities Reporting to the Executing Authority 24

Contents

12

Overview of Operations of the Department

Planning and the Provincial Medium Term Strategic Framework (P-MTSF)The Office of the Premier in its role of policy coordination in the Province has developed a draft P-MTSF for 2014-2019 as informed by provincial priorities outlined for this term of government. Departments’ strategic plans must take this work into consideration once finalised in the new financial year. Consultation has taken place across the board including departments and local government as well the Executive Council in the previous Executive Council (EXCO) Lekgotla held. With the new Executive Council appointed after the elections, the draft P-MTSF will be presented and finalised after their approval.

The work of developing the Strategic Plan (2014/19) for OTP which commenced in the year under review must therefore be concluded in line with the above framework.

Information Communication Technology (ICT) GovernanceThe Office of the Premier has supported all provincial departments to develop own ICT Governance Frameworks and policies relevant to the implementation of these. The Department has adopted and approved the ICT Management framework based on COBIT 5, Information Technology Infrastructure Library, and ISO 27002. The Executive Management has also approved the Risk Management Plan that includes ICT Risk Acceptance Register. All the ICT Security Policies have been reviewed and approved. Awareness of these policies will be rolled out beyond the ICT support unit.

As part of making gains on ICT, the department has, in line with its framework embarked on a number of initiatives which include the following:

Disaster recovery implementation plan: this will be implemented in the new financial year as delays were experienced with procurement process resulting in the procurement being awarded at year end.Video conferencing: this is aimed at reducing travel costs and bringing efficiencies in meetings as the department would be able to link with those outside OTP through this link. Another site will be identified within the Province to install a video conference centre.

A1 Report of the Accounting Officer


•

•

PART A: GENERAL INFORMATION

368 employees 31 employees are still in the process of being placed. The process is envisaged to be completed by the end of September 2014.

In terms of the Annual Recruitment Plan (ARP) for 2014/15 which was approved by the Provincial Coordinating and Monitoring Team (PCMT), 51 posts are earmarked for filling. The implementation of this plan is critical to reduce dependency on consultancy, specifically in the area of ICT support. It will also enhance the overall capacity of the department in the critical areas identified for prioritisation for filling of posts.

Hands on Support to DepartmentsThe department has continued with consistent provision of hands-on Human Resource (HR) technical support to provincial departments. Although the capacity to drive the interventions in the departments of Health and Education is limited, fruits of the efforts are becoming evident. Vast improvements have been reported on compliance, implementation of policies, HR effectiveness surveys and development of turnaround plans to address the gaps identified. In most departments delegations are in place and are being implemented to improve turnaround times in the system. In the year being reported, both departments of Health and Education received qualified audit reports which are an improvement when compared to the outcomes of previous years. It is hoped that these achievements will be able to be maintained and going forward improvements be made towards an effective and efficient system of governance.

A diagnostic assessment of the effectiveness of the support thus far is being conducted by the Office of the Premier together with ECSSEC. The outcome of the assessment will be able to inform the next step that OTP must take in the provision of support to departments.

Implementation of the Organisational StructureThe approved revised organisation structure for OTP has progressed much in implementation through various interventions which included direct placement; filling of vacancies through normal recruitment; filling of vacancies through internal advertisement of posts; internal transfers. To date, out of

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VoIP Telephone System: all provincial departments are establishing their own telephone switchboards. The OTP has procured a network based telephone system that will bring much needed efficiencies in reducing the costs of communication. With own telephone system the department will be able to manage the costs and set usage limits across the system

•



14

Overview of the Financial Results of the Department

Departmental Receipts

Departmental receipts

2013/2014 2012/2013

EstimateActual

Amount Collected

(Over)/Under Collection Estimate

ActualAmount

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 157 171 (14) 126 127 (1)

Interest, dividends and rent on land 3 - 3 5 - 5

Sale of capital assets 337 313 24 32 - 32

Financial transactions in assets and liabilities 1 473 2 071 (598) 64 398 (334)

TOTAL 1 970 2 555 (585) 227 525 (298)


The over collection that is reflected is a result of efforts by the department to collect all debts and this is where the revenue reported mainly comes from. The sale of assets resulted in some revenue being generated and these assets were sold after being confirmed as redundant and some obsolete and were sold by means of an auction.

The department is not a revenue collecting department as it does not have services or goods that it sells. However revenue is collected from commissions and collection of previous year debts with a small amount of revenue flowing from sale of assets when this occurs. The department collected revenue of R2,555 million resulting in over collection of R0,585 million.


15 Office of the Premier 2013/14 Annual Report

PART A: GENERAL INFORMATION (continued)Programme Expenditure

Programme Name

2013/2014 2012/2013

Final Actual (Over)/ Under Expenditure

Final Actual (Over)/Under ExpenditureAppropriation Expenditure Appropriation Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

1. Administration 129 482 128 659 823 102 787 100 688 2 099

2. Institution Building & Transformation 183 388 170 653 12 735 156 681 155 610 1 071

3. Policy and Governance 82 533 81 247 1 286 73 742 72 849 893

4. Executive Support Services 63 456 60 191 3 265 67 744 65 469 2 275

TOTAL 458 859 440 750 18 109 400 954 394 616 6 338


not received at year end, the department had committed funds for services to be rendered or goods to be received which, as mentioned above, were not as at year end. These funds have been reported as part of commitments disclosed in the Commitments note.

The finalisation of the award of some of the ICT projects was late such that the orders were issued in April 2014. Rollover application will be made where applicable.

The department had an adjusted budget of R458,859m of which it spent 96,3% or R440,750 m resulting in under spending of R18,109m (3,9%). The under spending reported is attributable to late finalisation of procurement processes, specifically those relating to ICT procurement. The procurement was finalised by end of the financial year however delivery of services or goods was not possible and will be effected in the new financial year. In certain areas which include standing contracts for the departments of which SITA is the main service provider, invoices for services rendered for the month of March were received after year end resulting in the accruals reported in the annual financial statements amounting to R7,648m. In addition to invoices


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Virements/roll Overs


Programme Name

2013/2014

Adjusted Budget Virements and Shiftings Final Appropriation

R’000 R’000 R’000

1. Administration 129 221 261 129 482

2. Institution Building & Transformation 170 964 12 424 183 388

3. Policy and Governance 89 703 -7 170 82 533

4. Executive Support Services 68 971 -5 515 63 456

TOTAL 458 859 - 458 859

Unauthorised, Fruitless and Wasteful Expenditure and, Irregular ExpenditureThe department has not incurred any of the above mentioned expenditure in the year under review. However a balance of R 0,552m of irregular expenditure incurred in the 2011/12 financial year that has been awaiting condonation. The expenditure emanated from human resources function on management of overtime and acting allowance payments. In responding to the weaknesses in the internal controls, the allowances were immediately lifted to Top Management reports and monitored on a monthly basis. Stricter control is exercised on approval of working overtime and appointment of personnel on acting capacity. This has ensured that there is no recurrence.

The department effected virements which were approved by the Legislature during the Budget Adjustment Appropriation and this resulted in the adjusted budget of R458,859 million as reported in the Appropriation Statement. Further virements and shiftings were effected which were within the 8% permissible for the Accounting Officer. Provincial Planning and Treasury was reported on accordingly. The virements and shiftings had no effect on the total budget as the Final appropriation remains R458,859 million.

Reason for the Virement The virements and shiftings were effected to address cost pressures in certain programmes by utilising savings or unspent funds from other programmes.



the Senior Manager appointed from 1 April 2013. There are vacancies but most of the critical positions have been filled and those not filled have been prioritised in the Annual Recruitment Plan of the new financial year.

The Accounting Officer had appointed all bid committees, i.e. Specifications Committee, Bid Evaluation Committee and, Bid Adjudication Committee.

The Committees concluded a number of bids during the financial year and none of these were unsolicited bid proposals. Some of the bids were forwarded for consideration to the Interim Bid Award Committee at Provincial Planning and Treasury inline with the departments delegations.

The internal systems and processes have been strengthened during the year to improve prevention and detection of irregular expenditure before awarding the bid. To that effect the department has not incurred any irregular expenditure in the year under review.

Challenges were however experienced which resulted in some of the bids not being awarded as planned. It has been identified from the analysis of the problems identified that specifications and criteria to evaluate were sometimes not crafted in a manner that would support evaluation of the bids. In such circumstances the department lost time in developing proper specifications and where bids were cancelled at the award stage, it affect delivery of the services or goods required.

The Specification Committee has been reconfigured for the new financial year by appointing officials that have the necessary skills in this area. Training is also to be scheduled for all the committees to strengthen their effectiveness in implementing supply chain management in the department.

Approval to condone the irregular expenditure has been received and this has been effected in the annual financial statements resulting in nil balance for irregular expenditure.

Future plans of the DepartmentThe department will be finalising the P-MTSF to inform the priorities of the Eastern Cape provincial government and at the same time align its Strategic Plan to ensure achievement of these priorities.

Public Private PartnershipsThere are no PPP arrangements entered into by the department.

Discontinued Activities / Activities to be DiscontinuedThey were no services that were discontinued or are to be discontinued

New or Proposed ActivitiesList of new/proposed activitiesThe establishment of the Technical Support Unit as part of the

organisational structure of the Office of the Premier will be determined in the course of the year. This unit is intended to strengthen the support role of the Office of the Premier to the provincial departments and including, certain municipalities where required.

Currently the function is incubated within the HCTMSS. The diagnostic analysis is currently underway and will inform the structure of the Technical Support Unit.

Supply Chain ManagementThe department has a functional supply chain management unit with



• General Manager: Provincial Communications assumed duty in the month of May 2014.

Other non-adjusting events• Orders to the value of R 0,243 million which have been included in commitments were decommited.• Office furniture and equipment valued at R0,282 million were disposed of.

Other MattersChanges in PolicyThe Modified Cash Standards in terms of which these annual financial statements have been developed has introduced certain changes in policy which have resulted in the reclassification of certain items :-Related party disclosure previously required that the value of the

transaction be reported on in the note even though it has been disclosed elsewhere. This is specific to transfers and subsidies of which Office of the Premier has a public entity to which it has made transfers. The public entity, ECSECC was in the previous financial year disclosed in the related party note with a transaction value of R41, 966 million. The effect of the change in Related Party is that the prior year balance of R41,966 million had to be adjusted to nil.

Inventory disclosure note is also affected by a change in policy and the balance reclassified as consumables.

Policy and Procedure on Incapacity Leave and Ill-health Retirement PILIRThe implementation of the Policy and Procedure on Incapacity Leave

and Ill-health Retirement (PILIR) was suspended for part of the financial year. PILIR provides for the appointment of a Panel of Accredited Health

Gifts and Donations Received in Kind from Non-related PartiesThe Sustainable Rural Development Programme of the Eastern Cape (SURUDEC) is a donor fund supported programme for which the Office of the Premier is responsible. The funds are donated by European Union (EU) for the purpose of promoting the achievement of sustainable livelihoods in at least 10 communities in the Eastern Cape through appropriate technologies and innovative approaches to rural development. The programme is expected to expire on 31 December 2014. The total of the funds allocated for this programme is twelve million euros distributed over the entire period of the programme.

Now Arms Length Transactions with Related PartiesThe Department of Roads and Public Works – The Departments has provided space to the Office of the Premier free of charge.

Exemptions and Deviations Received from the National TreasuryThere were no exemptions or deviations received that affect the annual financial statements as prepared.

Events after the Reporting DateNon- adjusting events:Change in leadership

In ushering in the fifth term of governance a new Premier was appointed as Executive Authority of the Office of the Premier. Honourable Premier P Masualle took the reigns from former Premier N Kiviet to lead the Eastern Cape Provincial Administration.

Key management personnel

• Head of Technical Support Unit was appointed on a five year contract effective 1 April 2014.• Post of Deputy Director General: Institutional Development & Organisational Support became vacant when the incumbent of the post was appointed as Head of Technical Support Unit. Post is in the process of being filled.



Risk Managers, by the Department of Public Service and Administration, as service providers available to a department to investigate and assess the applications made by employees. The appointment of these service providers was delayed due to a legal challenge brought to the High Court against the appointment process. Therefore for the first half of the financial year no timeous decision could be made on the validity of the incapacity and/or ill-health retirement applications received from employees. Although the Panel was formally established on 1 November 2013 there is a possibility that amounts paid to employees on incapacity and/or ill-health retirement may be recoverable if the applications, made in the first part of the financial year, are not subsequently recommended by the service providers.

In addition to the above, the current service providers appointed are only addressing cases that are current and backlogs have yet to be addressed. As the department we have costed and estimated the amount of the leave and reported such in the annual financial statements under Employee Benefits Note.

Acknowledgement/s or Appreciation I would like to express gratitude to my team, the Executive Management and all employees of the Office of the Premier for their contribution towards ensuring that we achieve our objectives while continuing to improve governance.

ConclusionThe Annual Financial Statements prepared together with the Performance Information Report are a reflection of the efforts of management and staff of the Office of the Premier to improve governance and ensure efficiencies in the work of government. The Office of the Premier, in seeking excellence, will continue to strive towards effectiveness in how it delivers its services.

Approval and sign off

__________________Mr Mbulelo SogoniAccounting Officer Office of the Premier30 May 2014



A2 Statement of Responsibility and Conformation of Accuracy of the Annual Report

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 2014.

Yours faithfully

Mr Mbulelo SogoniAccounting Officer Office of the Premier30 May 2014.

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 judgments 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.



A3 Strategic Overview A4 Legislative and other Mandates

A3.1 VisionLeader in excellence at the centre of a coherent pro-poor Provincial Administration.

A3.2 MissionEnsure responsive, integrated and sustainable service delivery to all in the Eastern Cape through strategic leadership, critical interventions and coordinated effective provincial government.

A3.3 ValuesThe Office of the Premier believes in: Humility, honesty and integrity; Courtesy, respectfulness, helpfulness and fairness; Openness, transparency and easy access; Equality, responsiveness and social justice; Peaceful and constructive co-existence; Creativity and innovation; High quality service; Client satisfaction; and Public participation.

The constitutional mandate of the Premier is derived from section 125 of the Constitution (Act No. 108 of 1996). This section provides the Premier and the executive council the authority over a Province by: implementing provincial legislation in the Province; implementing all national legislation within the functional areas listed

in Schedule 4, except where the Constitution or an act of parliament provides otherwise;

administering national legislation outside the functional areas listed in Schedules 4 and 5, that which has been assigned to the provincial executive in terms of an Act of Parliament;

developing and implementing provincial policy; coordinating the functions of the provincial administration and its

departments; preparing and initiating provincial legislation; and performing any other function assigned to the provincial executive in

terms of the Constitution or an act of parliament.

The Office of the Premier is a department created in terms of the Constitution, 1996 (Act No. 108 of 1996) and the Public Service Act (No. 103 of 1994) (Proc. No. 103 of 1994) to enable the Premier to lead the Eastern Cape government in the service of the public. It is thus mandated to ensure that: The Constitution, national and provincial laws, rules and regulations as

well as policies, are faithfully and effectively executed; Through the Executive Council, the Premier drives the transformation

process in the Province; Government is effectively coordinated, and The Office of the Premier be an exemplary and effective centre of the

Provincial Administration.



In addition to the Constitution and the Public Service Act (No. 103 of 1994), other important legislative guidelines include: Labour Relations Act, (No.66 of 1995); Basic Conditions of Employment Act, (No. 75 of 1997); Skills Development Act, (No. 97 of 1998); Promotion of Administrative Justice Act, (No. 3 of 2000); Promotion of Access to Information Act, (No. 2 of 2000); Preferential Procurement Policy Framework Act, (No.5 of 2000); Electronic Communications and Transactions Act, (No. 25 of 2002); State Information Technology Agency Act, (No. 88 of 1998).



A5 Organisational Structure


PREMIER

DIRECTOR GENERAL

CHIEF DIRECTORATE PREMIER’S CORE STAFF SPECIAL ADVISOR TO THE PREMIER

Directorate: Administration

Chief Directorate: Financial &

supply chain Management

Internal Control Unit

Directorate: Financial

Management

Directorate: Supply Chain Management

Services

Directorate: Strategic HR

Support

Directorate: Employee

Support & Talent Management

Directorate: Information, Knowledge

Management and Office Support

Service

Directorate: Strategic

Management

Chief Directorate: Corporate

ManagementChief Directorate:

Provincial ICT

Chief Directorate: Human Capital

& Talent Management

Support Service

Chief Directorate: Institutional

Support Service

Chief Directorate: Human Resource

Development Support Service

Chief Directorate: Anti-corruption

& Security Management

Chief Directorate: Performance Monitoring & Evaluations

Chief Directorate: Delivery

Facilitation Support

Chief Directorate: Policy, Planning

& Research Coordination

Chief Directorate: Cabinet Support

& Protocol Services

Chief Directorate: Provincial

Communications

Communication Strategy

& Internal Communications

Directorate: Intergovernmental

Relations

Directorate: Community & Stakeholder

Relations

Directorate: International Relations &

Development Support

Coordination

Chief Directorate: Intergovernmental

& stakeholder Relations

Chief Directorate: Legal Services

(Chief State Law Advisor)

Constitutional & Legal Compliance

Unit

Litigation Support Services and Legal

Advice Unit

Legislation & Contract Support

Services Unit

Directorate: Media Relations and Productions

Directorate: Marketing and

Branding

Directorate: Cabinet & Cluster

Secretariat

Directorate: Protocol Services

Policy & Research

Coordination & Cluster Support

Unit

Strategy & Planning

Coordination Unit

Service Delivery Facilitation Unit

Sub-Directorate: Service Delivery

Enquires

Performance Monitoring Unit

Performance Evaluation Unit

Knowledge Management & Programme Support Unit

Directorate: Provincial Anti-Corruption and

Ethics

Directorate: Provincial Security

Management Services

Directorate: HRD Strategy Development, Monitoring &

Support

Leadership Development Support Unit

Training & Development Support Unit

Service Delivery Improvement

Unit

Innovation & Knowledge

Management Unit

Organisational Design &

Systems Support Unit

Change Management Support Unit

Organisational & Employee

Wellness Support Unit

HRM Strategy & Policy Service

Unit

HR Practices & Information Management Services Unit

Employment Relations

Management Support

Performance Management Support Unit

Directorate: ICT Operations

Support

Directorate: Strategic ICT

Support

BRANCH 1: CORPORATE & OPERATIONS SUPPORT

BRANCH 3: POLICY, PERFORMANCE MONITORING & EVALUATION BRANCH 4: EXECUTIVE SUPPORT SERVICEBRANCH 2: INSTITUTIONAL DEVELOPMENT

& ORGANISATIONAL SUPPORT

CHIEF DIRECTORATE DG’S OFFICE

Directorate: Risk Management

Directorate: Internal Audit

Please note that in the year under review the Anti-Corruption and Security Management Unit was still under the Corporate and Operational Support Branch (or Programme 1) and as such it is reported under Programme 1. In the 2014/15 financial year, this unit has now been moved to Institutional Development and Organisational Support Branch (or Programme 2) in line with the approved organisational structure.


A6 Entities Reporting to the Executing Authority

Name of Entity Legislative Mandate Financial Relationship Nature of Operations

Eastern Cape Socio Economic Conultative Council (ECSECC)

It is a schedule 3C public entity in terms of the Public Finance Management Act (Act No1 of 199

The Department transferred R42 659 in the year under review to allow the entity to discharge its mandate

Its core business is to assist government and other stakeholders to achieve integrated development for the Province


PART B:

PERFORMANCE INFORMATION

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Contents

PART B: PERFORMANCE INFORMATION 28

B1 Auditor General’s Report: Predetermined Objectives 28B2 Overview of Departmental Performance 29 B2.1 Service Delivery Environment...............................................29 B2.2 Service Delivery Improvement Plan......................................31 B2.3 Organisational Environment..................................................35 B2.4 Key Policy Developments and Legislative Changes.............35B3 Strategic Outcome Oriented Goals 35B4 Performance Information by Programme 35 B4.1 Programme 1: Administration................................................35 B4.2 Programme 2: Institution Building and Transformation..........53 B4.3 Programme 3: Policy and Governance..................................65 B4.4 Programme 4: Executive Support Services...........................73B5 Transfer Payments 83 B5.1 Transfer payments to public entities......................................83 B5.2 Transfer payments to all Organisations other than Public Entities................................................................84B6 Conditional Grants 84B7 Donor Funds 85 B7.1 Donor Funds Received..........................................................85B8 Capital Investment 86 B8.1 Capital Investment and Maintenance....................................86 B8.2 Asset Management...............................................................86

28

B1 Auditor General’s Report: Predetermined Objectives


The Auditor-General of South Africa did not issue an opinion on the performance information report for the current financial year. However, a high level assessment was performed and the findings relating to the performances information report are contained within the Audit Report of the Auditor-General on page 150.

PART B: PERFORMANCE INFORMATION

29

B2 Overview of Departmental Performance Notwithstanding these challenges, a number of achievements can be highlighted. In the area of fighting corruption in the public service, for instance, the province is now implementing a policy prohibiting public servants from trading with government and from undertaking remunerative work without the approval of their executing authorities. Anti-corruption awareness sessions are being provided to enhance the detection and prevention of corruption and fraudulent activities.

Administratively, the province has enjoyed stability at the leadership level and this has assisted in maintaining consistency and continuity at policy level as the focus remained the same- implementation of government programmes.

The Provincial Public Sector Transformation Strategy is being implemented and to date all departments have developed and are implementing culture change programmes. Furthermore, the provincial ICT Framework was adopted and is being implemented. In an effort to stabilize management in departments, contract duration for heads of departments and Deputy Directors-General have been converted to five-year contracts and permanent employment respectively.

An Integrated Government Cluster Programme has been developed to improve monitoring of provincial priorities, between National and Provincial Departments, Public Entities and municipalities. Furthermore, Provincial Monitoring and Reporting has been institutionalised through the Premier’s quarterly one-on-one sessions with Members of the Executive Council (MEC) & departmental performance review sessions by the PCMT.

B2.1 Service Delivery Environment The 2013/14 financial year marked the end of the term of the fourth administration since the dawn of democracy. It thus provides an opportunity for reflections not only of the financial year under review but also the term of office. The 2011 census data released by the Statistics South Africa in October 2012 has demonstrated remarkable progress in both social and economic status of citizens. Access to formal housing, water, electricity sanitation, and refuse collection has improved in the Province. The Province, however, still has the highest levels of service delivery backlogs compared to other provinces. The economy of the Province has generally fared well given the global recession experienced during this term. Unemployment however remains high at 37% and 51% based on the narrow definition and a broader definition that include discouraged job seekers, respectively.

An assessment of the MTSF from a policy planning lens reveals that the prominence of the Provincial Growth and Development Plan, which was a blue print for development of the Province diminished gradually and that the alignment of the national and provincial strategic framework could be improved. With the new national and provincial development plan coming into effect, it is vital to consider lessons learnt from the Provincial Growth and Development Plan and the alignment of national and provincial frameworks. The new national outcomes approach to planning and institutional performance management was introduced in the middle of the MTSF and most departments could not adequately adapt to this new requirement. The role and capacity of the OTP in guiding planning in departments was not well defined and resourced. In addition, the relationship between provincial planning processes and Integrated Development Planning (as championed by municipalities) still requires strong alignment.



the Disabled People of South Africa.

Considerable effort and resources are now being deployed towards the following core priorities of the OTP business:Assisting departments in translating the macro plans (National

Development Plan and Provincial Development Plan) into departmental Strategic Plans and APPs;

Improving levels of compliance and accountability in the system (especially on HR matters);

Facilitating service delivery in departments and municipalities and monitoring thereof through the integrated government cluster system;

Improving the profile and image of the OTP and provincial government;Strengthening communications and intergovernmental and stakeholder

relations;Strengthening human resource development (transversal training); andImproving the internal capacity and operational efficiency of the

department (OTP).

The current audit trends across departments and municipalities reflect that much work will be required to ensure that an increased number of unqualified audits will be attained by 2014. However, initiatives that were put in place to improve governance both in municipalities and departments are starting to bear fruit as evidenced by the following: two [2] departments and one public entity (ECSECC) moved from

having unqualified reports with findings to have 100% clean audits, namely, OTP and Provincial Planning & Treasury;

four [4]departments maintained their previous year’s status of “unqualified with findings”;

The other departments [4] retained their “qualified” audit outcomes.one [1] department (Department of Education) moved from

“disclaimer” to “qualified” audit opiniontwo [2] departments regressed: Department of Transport from an

“unqualified” to a “qualified” audit outcome and the Department of Roads and Public Works regressed from a “qualified” audit to a “disclaimer’.

As part of the EXCO Outreach Programme, the Executive Council has teamed up with the Office of the Auditor General in the advocacy for the Clean Audit Campaign.

Despite efforts to improve the employment equity profile of the provincial government the employment equity profile remains low as women are still not well represented at senior management level, constituting 33% of all senior managers in the administration. The same trend is also recorded at disability aggregate which stands at 0.4%. The OTP will continue to implement its leadership development programme with a bias towards women in middle management positions while with respect to disability, partnerships will be established with organisations representing people with disabilities such as



B2.2 Service Delivery Improvement PlanThe department has completed a service delivery improvement plan. The tables below highlight the service delivery plan and the achievements to date.

Main services and standards

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Main services Beneficiaries Current/actual standard of service Desired standard of service Actual achievement

Provision of responsive strategic leadership to the Province

The Eastern Cape Province While the Department is doing a lot in this regard more is needed to be done in a number of areas including: Implementing measures to

ensure the perception of the public on government and the Province as a whole improves,

Monitoring the implementation of decisions of Executive Structures;

Improve complaints handling; And improve communication of

government work.

The desired performance was therefore an improvement in the areas listed here

The public perception, though not satisfactory, has improved from 31% in the previous financial years. By the end of the Fourth Quarter for 2013/14 it stood at 38%. This is partly due to the Department’s efforts in showcasing the achievement of government since the dawn of democracy;

The OTP monitored and supported the implementation of EXCO Outreach commitments throughout the course of the financial year. By the end of the financial year under review, 92% [610 out of 662] of commitments were either implemented or in the process of being implemented. The remaining issues were not included in the departmental plans and budgets as a result these have not yet been attended to.

An average of 79% [37 out of 47] of petitions or complaints received by the Department had been resolved



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Main services Beneficiaries Current/actual standard of service Desired standard of service Actual achievement

Coordination of service delivery programmes; and

Provision of service delivery interventions, where necessary, to provincial and local government institutions

Provincial Government Department and District and Local Municipalities

Coordination, monitoring and oversight on service delivery intervention programmes are limited which results in different levels of quality.

Consultation on the Programme of Action is limited and needs to be cascaded down to departmental and local government level.

Access to reports on Programme of Action and PCMT findings and other critical reports are not shared widely with all relevant stakeholders.

Limited feedback and follow-up on key interventions are undertaken.

Coordination, monitoring and oversight on service delivery intervention programmes will be centralized in one unit at OTP. Consultation on the Programme of Action to be cascaded down to district departmental level.

Reports and plans to be made available to identified departments and districts.

Feedback on key intervention programmes provided within 30 days.

The consistent provision of hands-on HR technical support, facilitation, coordination, monitoring and reporting resulted in the entrenchment of the imperative of compliance to the extent that: 12 departments conducted

HR effectiveness surveys and developed turnaround plans

11 departments had credible revised annual human resource plans

9 departments submitted credible six monthly and annual human resource implementation reports

12 departments had approved HRM delegations

10 departments had approved employment equity plans (with 3 under review) and the equity status improved slightly to 37% women representation whilst disability remained at 0, 4%.

For more detailed report on these and other please refer to the performance highlights in Programme Performance Report Section



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Batho Pele Arrangements with Beneficiaries (Consultation Access etc.)

Current/actual arrangements Desired arrangements Actual achievements

Consultations through makgotlas, EXCO Outreaches, Premier’s Coordinating Forums, MUNIMECs, etc.

The OTP will continue to hold makgotlas, EXCO Outreaches, Premier’s Coordinating Forums, MUNIMECs, etc. However, the monitoring of the implementation of decisions of these forums must improve.

Four EXCO Outreach Programmes, community and stakeholder engagements and the Premier’s Coordinating Forum (PCF) were organised. For more details on these please refer to the performance highlight of the Inter-Governmental and Stakeholder Relations Sub - Programme

Consultation on the Programme of Action Consultation on the Programme of Action to be cascaded down to district departmental level.

Coordination of the implementation of provincial priorities using the cluster model through one on one session convened with different cluster working groups and project teams. Amongst those were social transformation cluster working groups such as Human Settlements; Safety and Liaison; Early Childhood Development; Learner Attainment and Municipal Viability.

As part of engaging sectors, the Department participated in the IDP representative forums for Chris Hani, Joe Gqabi and Amathole. The engagement sessions formed part of a built-up to the conceptualisation of the integration of planning. Cascading of provincial priorities to the local government through a collaborative approach with Local Government and Provincial Planning and Treasury has started with the aim of lifting provincial priorities into the IDPs.



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Service Delivery Information Tool

Current/actual information tools Actual achievements

Office of the Premier information tools. These are: Perspective Magazine - targeted at provincial internal stakeholders, for example, civil savants,

state owned entities and national departments represented in the province) Isibane electronic Newsletter- targeted at external stakeholders such as media, business sectors,

institutions of higher learning and civil society in general Ikhwelo Newsletter - OTP StaffManagement brief – OTP staff

Perspective Magazine - three issues Isibane electronic Newsletter- three issues Ikhwelo Newsletter - monthly issueManagement brief – monthly issue

Complaints Mechanism

Current/actual complaints mechanism Actual achievements

The Department has a complaints mechanism in place where the public can raise their concerns with the Premier through ‘walk-ins’, petitions or written complaints.

The Department resolved 79% [37 out of 47] of the petitions received in the financial year under review. Petitions which had not been resolved by the end of the financial year were received in the Fourth Quarter of 2013/14. These will only be resolved in the first quarter of 2014/15.

The Department also manages complaints received from the Presidential Hotline Regarding this area 77% [5 448 out of 7 115] were resolved. Training of Parliament Liaison Officers in Departments and municipalities through the support of SETA has resulted in improvements on this indicator.

For staff, a grievance procedure is in place and a designated employee is appointed to investigate and facilitate finalisation of grievances

The statistics on the matter are explained in detail in the Human Resource Management Report on table 3.12.4



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B2.3 Organisational Environment The organisational environment for the Office of the Premier is blended with both challenges and opportunities for organisational growth. However, the achievement of an unqualified audit outcome with no matters of emphasis suggests that the concerted efforts expanded in a number of management areas are beginning to bear fruit. These areas include the consistency of leadership provision, improved compliance with laws and regulations, improved labour relations environment, and improvements in the functionality of governance structures. Although not fully implemented, the new organisational structure has ensured that the Department is capacitated adequately in critical areas to ensure the organisation realises its full potential.

The achievement of the unqualified audit is an important milestone in the history of the Department but it is not an end in itself. The challenge which remains for the OTP is how to make the organisation more effective in discharging its mandate of providing strategic leadership to the Province, co-ordinate service delivery and provide the much needed service delivery interventions where institutions that are legally competent to discharge these have failed. This challenge requires that the Department reposition itself in order to live up to this noble expectation. Key to this will be the implementation of measures to improve internal capacity and operational efficiency of the Department and the image of the institution.

The focus on the implementation of the human resource plan, particularly employee wellness and performance management and development system, supply chain management, document management, improvements in accountability at all levels, at integrated approach to service delivery are some of the important areas that the Department will continue to pursue in 2014/15 financial year.

Whilst budget in the OTP is not a major constraint, other issues such as office space, defining and embracing a new organizational culture, streamlining and mapping out of work flow processes, performance management, recognition of innovation and excellence will be critical success factors

B2.4 Key Policy Developments and Legislative ChangesThere were no key policy developments and legislative changes in the year under review.


B4 Performance Information by Programme

B4.1 Programme 1: Administration

Programme PurposeProviding leadership and responsible for rendering effective and efficient corporate, strategic and operations support to facilitate the achievement of the OTP’s mandate. This is accomplished through the following sub-programmes:-Sub-programme 1.1: Deputy Director General Sub-programme 1.2: Premier’s Core Staff Sub-programme 1.3: Director-General’s Office Sub-programme 1.4: Strategic and Operational SupportSub-programme 1.5: Internal Human Resources Sub-programme 1.6: Financial & Supply Chain Management


B3 Strategic Outcome Oriented Goals

Strategic Goals

Strategic Goal 1:To co-ordinate institutional transformation of the Provincial Government towards the building of a developmental state

Strategic Goal 2:Coordinated and integrated service delivery in the Province

Strategic Goal 3: Strengthen good governance, co-operative governance and public participation

Strategic Goal 4: Position the Office of the Premier as strategic leader and effective centre of coordination of service delivery in the Province

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Strategic goals and Objectives Applicable to the Programme

Strategic Goals Strategic Objectives


Build a people focused organisation

Ensure that the institution of the state are reflective of the demographics of the society

Effectively coordinate and build the capacity of the public sector towards social and institutional transformation


Provide strategic leadership and support to the department and provincial administration

Provide an independent, objective assurance and consulting internal audit activity designed to add value and improve department’s operations

Effectively coordinate efforts aimed at preventing, combating fraud and corruption focusing in transforming the culture of the provincial public service to promote professionalism and sound ethics

Ensure sound organisational integrity inclusive of human resources, financial and Supply Chain Management (SCM) practices and systems by 2014


Sub–Programme Reports

Sub-Programme 1.1: Deputy Director General’s Office • Please refer to core sub – programme reports

Sub-Programme 1.2: Premier’s Core Staff

Performance Highlights1) Premier Government Business and statutory obligationsThe Premier delivered the State of the Province Address (SOPA)

on the 21st February 2014 which was debated in the Legislature two days on 25th and 26th February 2014 in the Raymond Mhlaba Chamber.

On the 28th February 2014 the Premier delivered the keynote address at the opening of the Eastern Cape House of Traditional Leaders.

Four quarterly meetings were held with the Speaker of the Eastern Cape Provincial Legislature and a once off meeting was held with the National Council of Provinces and the Speaker of the Eastern Cape Provincial Legislature. The objectives of this meeting were to critically examine the work of the National Council of Provinces as a House of Parliament and how to explore ways to engage universities in the Province on matters of service delivery, governance and development.

A meeting was held with the MEC’s of Economic Development, Environmental Affairs and Tourism, and Rural Development and Agrarian Reform, their Heads of Department (HOD), and Chief Executive Officers (CEO) of the Eastern Cape Development Corporation and Eastern Cape Rural Development Agency to discuss Magwa Tea.


B3 Strategic Outcome Oriented Goals

Strategic Goals



Strategic Goal 3: Strengthen good governance, co-operative governance and public participation


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Premier addressed the Economic Symposium hosted by Minister of Finance in East London. Premier highlighted the need for more investment by National Government on Infrastructure to unlock the industrialisation potential of the Province and the creation of jobs.

MEC for Local Government and Traditional Affairs represented the Premier in the debate on Public Administration Amendment Bill in the National Council on Provinces. The Province emphasized the need to fast track the transformation of the public service as it would lead to mobility of civil servants within and between the 3 spheres of government to improve service delivery.

The Human Rights Day debate in Parliament was addressed by the Premier. The Premier emphasized the need to celebrate the gains we have made in institutionalising and protecting human rights in South Africa. The Premier called on legislators to ensure that people in their constituencies are aware of their basic human rights.

MEC of Sports Recreation, Arts and Culture delivered the Provincial Human Rights Day speech on behalf of Premier wherein she praised the fallen heroes and heroines of the struggle for the attainment of freedom and democracy.

Keynote address to South African Local government Association (SALGA) member’s assembly with messages to councilors and local government stakeholders, calling on them to work towards stability and professionalism in order to improve governance and accountability within local government.

Premier delivered the keynote address at the Wild Coast Summit. The Premier joined the President to officially open

the Ndidini Senior Secondary School in Libode. The opening of this school was part of the Accelerated School Infrastructure Delivery Initiative (ASIDI) Programme.

2) Premier’s structured engagements A full round of quarterly performance engagements with all MEC

were successfully held. Post SOPA Provincial Community Stakeholder Engagement

were held in Elundini, OR Tambo, Cacadu and Amathole District


Municipalities to provide communities and civil society formations an opportunity to reflect on policy issues pronounced in the State of the Province Address. It was also an opportunity for stakeholders to engage the Premier and her Executive Council on policy matters.

South African Broadcast Corporation (SABC) Morning Live Business breakfast - All stakeholders were invited to this engagement where Premier and MEC’s were responding to questions from media and the stakeholders regarding the pronouncements made by the Premier during the State of the Province Address.

3) Stakeholder engagementPremier hosted the 2013 Top Achievers Awards Ceremony in January

2014. Premier issued bursaries to 50 top achievers of the Class of 2013 Matriculants, with each student receiving a scholarship of R 50,000, a Laptop and a Top Achievers Certificate from the Premier.

Premier delivered the keynote address at the SALGA Members Assembly. Councilors and local government stakeholders were motivated to work together to improve and build a new image of local government. She highlighted the failure of many municipalities for not having proper checks and balances in place concerning financial management. The Premier emphasised the importance for Local Government to improve on the mixed and poor results reported by the Auditor General.

Premier had several meetings with ESKOM Chief Executive Officer focused on challenges with electricity supply to the Province and presented the priority areas of government and future projects that would depend on consistent and uninterrupted electricity supply. She emphasised the importance of future collaboration to realise the expansion and systematic roll-out of electrification infrastructure to support the development needs of the Province.

The Premier addressed the Mkiva Humanitarian Awards Ceremony and encouraged the recipients to continue with their selfless efforts and deeds for the good and wellbeing of all communities.

Premier had engagements with Shell South Africa and the Department of Education to discuss modalities of financial assistance that Shell


wants to offer to matriculants from the Eastern Cape ProvinceThe Horizon Educational Trust, founded by the Johannesburg Turkish

community in 1998 met the Premier. The Trust identified Nelson Mandela Bay as the preferred area to construct their eighth school in the country. All schools under the management of the Horizon Educational Trust have a track record of an annual 100 percent pass rate and they are of the opinion that the school will contribute to the improvement of the overall matric results of the Province.

The South African Youth Council had an introductory meeting with the Premier. They discussed their role and sought guidance on future cooperation with the Office of the Premier and the provincial government in general. The meeting was regarded as laying a foundation for good relations between South African Youth Council and other provincial departments.

The annual general meeting of the South African Lawyers Association was addressed by the Premier. She shared her views about the slow pace of transformation in the judiciary and called for more female judges to emerge in the Province and the country.

At the Social Workers Summit, the Premier called on Social Workers to return this profession to its former glory days. She said the profession is suffering from negative media coverage because of corrupt elements within it. However Premier praised those Social Workers who still take the profession seriously. She emphasised the important role that social workers are playing within society by ensuring that the government programmes and resources meant to protect the most vulnerable are reaching the right people. She further emphasized that they should be the custodians of the safety nets that government introduced, and in many respects, they are the agents of change, the protectors and implementers of the Constitutional rights of the poor.


Premier met with the leadership of Nehawu to address the union’s concerns regarding perceived inconsistencies in the implementation of Policies within OTP. The meeting was held in good spirit. The Union registered their appreciation for the Premier to have met with Nehawu and settled concerns.

In response to a request for intervention from the South African National Specialised Education, the Premier facilitated a meeting between SANASE and the Department of Education and Training. The meeting adopted resolutions to address all outstanding issues including the non-payment of Educators by end April 2014.

4) Community outreachThe Premier assisted 112 disadvantaged students who needed

financial assistance to further their education at Public Tertiary institutions to the value of R 1.8m.

Madame Premier addressed the Ecumenical Lecture of Reverend Mbethe. She lauded the role played by Religious leaders and urged the church to once again play that central role by mobilising society towards a common vision of social cohesion as envisaged in the National Development Plan.

Unannounced visits took place to Ulwazi High School which obtained a pass rate of 100 percent during the 2013 matric examinations. The Premier thanked the teachers for their dedication, support and hard work during 2013. The Premier further encouraged the matriculants of 2014 to strive to uphold the standards of 100 percent pass rate, set by them. Another unannounced visit took place to Sithembiso Senior Secondary School which did not perform well. Premier motivated the school to improve its performance. Premier intervened in disadvantaged schools and communities by reaching out to the girl child. Sanitary ware was distributed to 900 young girls. Sithembiso High School was also assisted with school toilets.

As part of the national government drive to establish norms and standards for Early Childhood Development Centres (ECD), Madam Premier launched the Loaves and Fishes Early Childhood Development Centre. In her address she unpacked government



policy and emphasised the importance of early childhood development. She called on communities, families and local leaders to ensure that all children are enrolled at ECD centres. She reported on the successful programme that Government rolled out to ensure that ECD Educators at these centres are well equipped to educate children the basics of reading, writing and counting.

On the 30 June 2013 the Premier mobilized all stakeholder departments to address the Ntabankulu Petition. The meeting resolved that sector departments submit roll-out plans to implement demands set out in the petition. A follow-up meeting was held at the Mayors Parlour in Ntabankulu on 7 June 2013, where all departments tabled their plans to address the concerns raised in the Petition. A consolidated report was adopted outlining an integrated approach to address the Ntabankulu Petition. Although the plan is in place, the petition was escalated to the Presidency by community members who were not part of the meeting held on 7 June 2013.

The office facilitated Premier’s birthday outreach in June, which targeted pensioners and children including orphans from destitute communities. 300 elderly citizens received blankets and meals 150 children received winter gifts, toiletries and meals.

Premier delivered the Xola Nene Memorial Lecture at Walter Sisulu University in honour and recognition of the leadership role he played in the struggle against apartheid and human oppression.

Keiskammahoek Petition - Substantial progress was made dealing with the petition received from Keiskammahoek community. All sector departments and community stakeholders were engaged in addressing the demands of Keiskammehoek communities. After numerous inter-governmental engagements a Keiskammahoek beautification project was undertaken. Premier went on an official outreach to Keiskammahoek, to address the community on progress made as a result of the intervention of her Office.

Three consultative meetings were held with all stakeholders. Consultative meetings continued to take place to address bottlenecks regarding service delivery. The municipality, sector departments and all community stakeholders were brought on board.

5) Constituency work.On 3 May 2013 the Premier had an Outreach in her constituency,

which was a resounding success. Approximately 500 people from disadvantaged communities received direct assistance from services on wheels. They applied for identity documents, applied for social security and had access to any information regarding government services. Food parcels were distributed to the destitute and the elderly and the locals had an opportunity to register their complaints directly to the Premier. This engagement was live on air.

Performance Indicators

Performance Indicator Actual Achievement (2012/13)

Planned Target (2013/14)

Actual Achievement

(2013/14)

Deviation from Target for 2013/14

Comment on Deviations

1.1

Percentage of petition/complaints/ to the Premir resolved as part of theDepartment’s efforts to promoteand demonstrate good and responsive governance.

100% 100% 79% [37 out of 47] 21% [10 out of 47]

Petitions which had not been resolved by the end of the financial year were received in the Fourth Quarter of 2013/14. These will only be resolved in the first quarter of 2014/15.


40

departmental level and at Audit Committee level.

c) Review of the Risk Management Strategy and increased monitoring thereof: this resulted in the reduction of the residual risk level from 9.62, at the beginning of the year under review, to 6.87 by year end. The reduction points to the positive impact of the implementation of risk action plans on reducing the Department’s risk exposure.

d) Improved anti-corruption and security management in departments through training on security management policies, pre-employment screening and through the support provided to all 13 departments on the implementation of the Fraud Prevention Plans.

3) All 39 planned audits were implemented. The audits covered critical areas such as leave management, contract management, performance against pre-determined objectives and implementation of the Audit Intervention Plan. The outcome of these audits, including the implementation of the recommendations thereof, is an improvement in the control and compliance environment of the department which will further result in improvements in the operations and attainment of set objectives.

4) Verification of Senior Management Service (SMS) members financial disclosures: as one of the initiatives of taking the fight against corruption to greater heights, the OTP – for the first time- conducted verification of the SMS financial disclosures: the value of this initiative is that it gives assurance on the credibility of the SMS financial disclosures whilst it will also enhance the implementation of the Policy prohibiting trade with government without prior approval. It will further reduce corruption risk levels.

5) Implementation of the Policy to Prohibit Trade and/or employment by employees of the Provincial Government without approval was rolled out and implementation thereof monitored. It is envisaged that the implementation of this policy and the monitoring thereof reduce conflict

Strategy to Overcome Areas of Under PerformancePetitions/complaints which had not been resolved by the end of the financial year were received in the Fourth Quarter of 2013/14. These are followed up with relevant departments that must assist in responding and resolving since they were received in the Fourth Quarter they will only be resolved and reported on in the first quarter of 2014/15.

Changes to Planned Targets • None

Sub-Programme 1.3: Director General’s Office

Performance Highlights1) Enhancement of Governance Systems: the department’s governance

system was improved through the development and implementation of the OTP Procedure and Protocols Manual for submissions and communication in the department, and the OTP Governance Framework. These resulted in the improvement of efficiency and accountability levels whilst also promoting consistency in the OTP’s business practices.

2) Governance Plans, namely, the Risk Management Strategy, Internal Audit and the Provincial Fraud Prevention Plan were implemented and the following achievements can be highlighted:

a) Integration of assurance processes through a Combined Assurance Model that seeks to improve governance oversight, control efficiencies and reduce risk thereby improving performance of the department.

b) Risk Mitigation Monitoring Dashboard development: this has enhanced risk management reporting and oversight both at


1)


8) Performance monitoring and reviews on targeted programme quarterly performance were conducted. Through this initiative potential risks to the attainment of the set performance targets were identified and mitigated thereby resulting in the department achieving more than 80% of its annual targets.

of interests during the tender processes of government.

6) Capacity building on governance: The capacity and performance of key governance personnel was enhanced through targeted capacity building programmes implemented both within the OTP, in targeted departments and in targeted municipalities.

7) Production of the first Provincial cadre of qualified Certified Fraud Examiners: this is a result of collaboration between the OTP and the Provincial Treasury. This initiative will contribute in reducing the

fraud case backlogs whilst enhancing the anti-corruption capacity in departments which will in turn reduce the delays in dealing with fraud and corruption cases.

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Performance Indicator Actual

Achievement (2012/13)


Actual Achievement (2013/14)

Deviation from Target for 2013/14 Comment on Deviations

1.2

Number of management reports on implementation of OTP programmes to monitor the performance of the Department

50 48 48 0 -

1.3Percentage of challenges from Departments escalated to the Director General’s Office resolved

100% 100% 100 [5 out of 5 cases resolved] 0 -

1.4Level of implementation of the approved Risk Management Strategy to ensure organisational integrity

100% 100% 100% [all planned activities implemented] 0 -



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Actual Achievement (2013/14)

Deviation from Target for 2013/14 Comment on Deviations

1.5Number of audit projects completed as part of the implementation of the internal audit plan

12 12 25 +13Six audits were carried over from the 2013/14 financial year. In addition, 7 more audits were included in the Audit Plan during the cause of the financial year

1.6

Number of monthly monitoring reports of the audit intervention plan to ensure that deficiencies in the internal control environment are addressed

12 4 4 0 -

1.7Percentage of backlog case1 investigations on fraud and corruption completed to achieve good corporate governance

400 backlog cases 22.5% [90 out of 400 cases]

21.3% [85 cases investigated]

1.2% [5 cases]

The time taken to investigate cases is longer than anticipated owing to poor document management in departments. This is compounded by the fact that some of the cases being investigated date back to 2005. This creates delays in obtaining relevant evidence to finalise cases.

1.8

Number of departments coordinated and supported in the implementation of security management policies to safe guard and protect assets of government

New indicator 13 13 0 -

1 Backlog cases refer to those cases that were reported prior to 31 December 2012 and are yet to be investigated. As at 31 March 2013 they are 400 backlog cases



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Strategy to Overcome Areas of Under Performance

1) Backlog Case Investigations: The time taken to investigate cases is longer than anticipated owing to poor document management in


departments. This is compounded by the fact that some of the cases being investigated date back to 2005. This creates delays in obtaining relevant evidence to finalise cases. Department will continue working with the support of contracted investigators to address the backlog.

Changes to Planned Targets

Performance indicatorChanges to Targets

Reason for the AmendmentOriginal Target/

indicatorRevised Target/

indicator

1.6Number of monthly monitoring reports of the audit intervention plan to ensure that deficiencies in the internal control environment are addressed

12 monthly reports for the financial year

4 quarterly reports for the financial year

It is now established that reviews are performed too frequently to enable the completion of the action. The Department would benefit from a quarterly review to provide for sufficient time for actions to be implemented and significant progress recorded. Furthermore, the Audit Intervention Plan has been aligned to the dashboard which is reported on a quarterly basis.

1.7 Percentage of backlog case1 investigations on fraud and corruption completed to achieve good corporate governance

50% (equivalent to 200 cases)

22.5% (equivalent to 90 cases)

The time taken to investigate cases is longer than anticipated owing to poor document management in departments. This is compounded by the fact that some of the cases being investigated date back to 2005. This creates delays in obtaining relevant evidence to finalise cases.

1 Backlog cases refer to those cases that were reported prior to 31 December 2012 and are yet to be investigated. As at 31 March 2013 they are 400 backlog cases


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early in the new financial year.

4) The Department celebrated the Nelson Mandela Day by setting up of a mini-library at Inyathi Primary School in Duncan Village with the aim of improving reading culture at this school. The school enrolls approximately 1 200 children most of whom come from informal settlements around the area. The Department worked with various sponsors who contributed reading materials and furniture for the library.

5) The Department has established a Records Management Committee that will advise and oversee records management in the Department. Records stored at the Department of Sports Recreation Arts and Culture were sorted and those that had outlived their lifespan were disposed to create space for new records. Documents in several storage facilities in the Department were also sorted. This enables the Departments to retrieve records within the required timeframes. The rolling out of the new file plan which is line with the Departments approved Records Management Policy commenced in the last quarter of the financial year under review and will continue in 2014/15 financial year.

6) With more staff having been appointed into the Department, office space has become a serious challenge. The Sub- Programme worked with the Department of Roads and Public Works and partitioned open plan offices to create individual offices for new senior managers. In addition 13 offices were renovated and 36 were carpeted.

7) Recognition of Service: the Department conducted a session for Long Service Awards for 13 officials with 20 to 30 years of services. The Department also thanked the families of these officials for the contribution to the work of government and service delivery.

Sub-Programme 1.4: Strategic and Operational Support

Performance Highlights1) The Department strengthened its performance monitoring and

reporting processes with the adoption of an internal policy on the management of performance information. This policy institutionalises systems for strategic planning and the performance monitoring and reporting. It lays a foundation for credible performance reporting in the Department. As part of the implementation of this policy all performance reports produced in the year under review were validated before their approval and publication. Analysis of the performance of the Department was conducted discussed on quarterly basis to identify and take appropriate actions in areas of under-performance. In addition, the implementation of this policy has resulted in the Department meeting all its statutory reporting requirements to oversight institutions such as the Provincial Planning & Treasury and the Provincial Legislature.

2) The Management Performance Assessment Tool (MPAT) 1.3 was implemented and the report subsequently submitted to the Department of Performance Monitoring and Evaluation. The assessment indicates that the Department has improved in all management areas covered by this tool compared to the previous assessment. Despite this improvement, there are areas that are still below the required standards and action plans are already in place to address these.

3) The work of developing the Strategic Plan (2014/19) commenced in the year under review. Extensive discussions were held resulting in the formulation of a draft strategy of the Department which contains core elements of the strategy, namely: the vision, mission, strategic goal, strategic objectives, key performance indicators and approach to service delivery. This strategy has been shared with all staff of the department. By the end of the financial year plans were afoot to consult on this strategy with relevant external stakeholders to solicit their input prior finalisation. All this ensured that the Department is ready to implement new plans



45





Actual Achievement

(2013/14)



1.8Number of departments coordinated and supported in the implementation of security management policies to safe guard and protect assets of government


1.9Organisational self-assessment conducted to provide a critical lessons to inform the Department’s strategy


1.10

Number of departmental plans2 approved for tabling to parliament and/or presented to the Portfolio committee to allow parliament to exercise its oversight role on the Department


1.11

Number of Departmental performance reports3

approved for tabling to parliament and/or presented to the Provincial Treasury to allow these institutions to exercise their oversight roles on the Department


1.12Percentage of documents retrieved and submitted to the requester within two working days of the request being made

New indicator 100% 100% [306 out of 307] 0 -

1.13

Review and approval of the User Asset Management Plan (U-AMP) of the Department to ensure that the Department’s infrastructural needs are catered for in its strategy


1.14

Development and approval of the security management policy of the Department to safeguard and protect assets of government against theft and losses



2 Plans referred to in this measure are the Annual Performance Plan, Operational Plan and the Service Delivery Improvement Plan;3 Reports referred to in this measure are quarterly and annual reports.


46


• None


• None


SMS members underwent competency assessment. The results of this process are now being used to guide development plans for these employees.

4) Implementation of the Structure: By the end of the financial year a total of 311 employees had been placed. Processes are unfolding to ensure that the remaining employees are placed in the structure. Personal Developmental Plans for these newly placed staff are being implemented to facilitate a smooth transition into their new appointments.

5) A total of one hundred and forty four (144) employees were trained in the financial year under review. The bulk of the funds spent on training was on core programmes. This has assisted in ensuring that the Department develops necessary skills and competency to implement its mandate.

Sub-Programme 1.5: Internal Human Resource Management

Performance Highlights1) Employment Equity status of the Department has reached 50/50 gender

parity. There are now 30 female SMS members out of a total of 60. This is in-line with the set National targets. The Department has facilitated the participation of a number of junior managers in the Leadership Programme so as to create a pool of talented employees that will be targeted for succession in higher positions within the confines of the approved policies and Legislative Framework. This effort will contribute towards ensuring that this achievement is sustained.

2) Performance Management has improved in the Department with all eligible employees having contracted by the end of April 2013 for the financial year under review. Performance reviews subsequently followed at the end of every quarter for all employees below the SMS level while those for SMS members were conducted half year in accordance with the Performance Management and Development System (PMDS) policy. Performance incentives for deserving employees were processed and this has assisted in creating a performance driven environment geared towards implementing plans of the Department

3) The ensure that the Department is well resourced to execute its strategy an Annual Recruitment Plan consisting of 12 posts was approved by PCMT and all these posts were filled. Furthermore, competency assessments were conducted to all the newly appointed Senior Managers. In addition, for the developmental purposes 13 other






Actual Achievement

(2013/14)



1.15Average number of days taken to fill a post from the date when approval was granted to fill the post

New indicator 120 days 134 days +14 days

The Department has been having capacity challenge in HR in general and this has affected its ability to monitor performance on this area. The Department has put in place measure for the monitoring of recruitment processes and the process of developing master-list for posts that attract huge number of applications has been approved.

1.16

Percentage of employees serving probation confirmed/or not confirmed (that is, where a review has conducted and the employee has not satisfied the obligations of his/her duty) in the 13th month of them assuming duty in the Department

New indicator 100% 53% [31 out of 59 employees]

47% [28 out of 59 employees]

Inadiquate management of probationary reports resulted in this target not being meet The Department will strengthen its monitoring mechanism in this area to ensure improvement in this area.

1.17Number of SMS disclosing their financial interests by 30 April 2013 in pursuit of good corporate governance

56 60 60 0 -

1.18Number of staff trained as part of the implementation of the HRD policy of the Department

New indicator 120 158 +38

The transversal programme of OTP rolled the EDP, AMDP and ALP which benefited 14 staff members hence the deviation. Additional staff were also trained by the Provincial Treasury on Supply Chain Management and PERSAL. These had not been anticipated at the time of setting targets

1.19Percentage of staff awarded with bursaries successfully completing their programme on time

New indicator 100%

No bursary holders were due for completion, however 27 staff members were awarded with bursaries in Q4]

0 -



48




Actual Achievement

(2013/14)



1.20

Number of employees with credible performance agreements by 30 April 2013 as part of the implementation of the Performance Management and Development Policy

361 392 379 [out of 384 staff contracted] 5

The balance is because of non-availability of employees concerned due to ill health and secondment to another department.

1.21Number of employees whose performance has been reviewed and evaluated as part of the implementation of the Performance Management and Development Policy

359 392 341 out of 370 employees 29

There is general lack of compliance in the Department resulting in reviews not being done on time. A PMDS implementation plan will be implemented and monitored closely.

1.22Percentage of leave captured on PERSAL within 30 days from the date when leave was approved

New indicator 100% 100% [2 408 out of 2 408] 0 -

1.23

Level of implementation of the Provincial Culture Strategy to transform the public service and enhance service delivery New indicator 100%

100% [all planned activities were implemented]

0 -

1.24Level of implementation of the Provincial Wellness Strategy as part of government’s strategy to transform the public service and enhance service delivery

New indicator 100%

80% [all other planned activities

implemented except the

approval of the strategy]

20% [relating to the non-

completion of the wellness strategy]

Due to lenghthy consultation process the strategy was not approved on time as anticipated. This will be approved in the First Quarter of 2014/15

1.25 Percentage of women in senior management position in the Department 42% 50% 50% [30 out of 60

SMS] 0 -

1.26 Percentage of employees who are in the category of people with disability 1% 2% 0.8 [3 out of 375] 1.2% [5 staff

members]There are too few candidates from people with disabilities who are applying for posts in the Department

1.27Percentage of grievances finalised (that is, were all internal processes have been concluded) within 30 days.

New indicator 100% [No grievance were recorded] 0 -






Actual Achievement

(2013/14)



1.28 Percentage of exit interviews conducted to employees leaving the Department New indicator 50% 68% [19 out of 28] +18% [5 out of 28]

The Department redesigned the form to exclude supervisors in the administration of the interview and this has improved the turnover rate of the questionnaires


Strategy to Overcome Areas of Under Performance1) The Department has been challenged in terms of maintaining

consistency of its human resource practices. There have also been delays in turnaround times in the execution of processes. In response human resource policies are undergoing review and process maps will be developed to give more clarity to officials managing these processes.

2) Achieving targets on employees with disabilities is a challenge for the Department. The challenge is multi-faceted: in some instances employees do not declare their disability and also that it is proving difficult for the Department to attract job applicants from this group. The Department will embark on awareness campaigns to educate employees and encourage them to declare to enable them to be supported. The Department has also established and resourced a Special Programmes Unit for coordination and mainstreaming.




indicator

1.15 Average number of days taken to fill a post from the date when approval was granted to fill the post 90 days 120 days

The timelines on the targets are too restrictive and tight especially where a post has to be advertised externally. The prescript from the Department of Public Service and Administration (DPSA) also sets a maximum 120 days between the date of advertisement and the date when the incumbent assumes duty.

1.28 Percentage of exit interviews conducted to employees leaving the Department

100% (all employees exiting the Department)

50% (of all employees leaving the Department)

Even though it is desirable that all employees are interviewed at the time when they are leaving the Department in some instances it is not possible to achieve this, for instance when an official has been dismissed or has resigned amidst a disciplinary inquiry. In addition the Department and the public sector in general do not have the authority to compel any staff member to complete an exit interview at the time of their departure. In the next financial year the indictor will be changed to focus on quarterly reporting on the analysis of exit interview findings.



50

6) The S40 cash flow projections were completed and timeously submitted to Provincial Planning and Treasury.

7) Asset Consolidation Project which included the annual stock count and disposal of assets in the district offices that have closed was initiated in the third quarter and successfully finalised in the fourth quarter.

Sub-Programme 1.6: Financial and Supply Chain Management

Performance Highlights1) Audit Outcome: The Department achieved an unqualified audit opinion

with no matters of emphasis or findings for the 2012/13 financial year. This is as a result of the active involvement of Top Management and the implementation of the Audit Intervention Plan and the support of the oversight Audit Committee, with the general improvement of the quality assurance of submissions.

2) Financial monitoring: In a bid to strengthen monitoring and accountability, measures were put in place for Programme and Sub-Programme Managers to account for financial performance: this has improved the financial performance of the Department and the attainment of the set service delivery targets.

3) 30 Days Payments of Service: The Department has continued to maintain improvements in the turnaround time in processing invoices in 2013/14 financial year. This has resulted in the department maintaining an average of 13 day turnaround time on payment for the invoices received in 2013/14 financial year.

4) The Department achieved an improved Financial Management Capability Maturity Model (FMCMM) of 2.87 from a previous score of 2.59. (The best practice score being 3). Improvement plans are in place to address areas where weaknesses were identified.

5) The Annual Financial Statements for 2012/13 were submitted to Auditor General and Provincial Planning and Treasury (PPT) on the 31 May 2013. The Interim Financial Statements were also submitted to PPT for the three quarters with the fourth quarter focusing on the Annual Financial Statements for 2013/14.



51

Performance Targets




Actual Achievement

(2013/14)



1.29An unqualified audit outcome with no matters of emphasis in pursuit of good corporate governance

1 1 1 0 -

1.30Percentage of approved budget spent to ensure that resources allocated to the Department are adequately utilised

100% 100% 96.1% [R440. 8m out of R458.9m]

3.9% [R18.1m out of R458.9m]

Capital projects were not completed and paid within the 2013/14 financial year. This mainly relates to the procurement of the disaster recovery plan. Application for rollover for the 2013/14 funds will be submitted to Provincial Planning and Treasury in 2014/15.

1.31Financial delegations reviewed annually in accordance with the PFMA and National Treasury Regulations

1 1 1 0 -

1.32 Percentage of invoices/claims in good standing paid within 30 days 100% 100% 99% [2 633 out of

2 660]1% [27 out of

2 660]

Centralisation of the authorisation function for banking details of service providers by Provincial Treasury resulted in the delays of payment for 27 invoices in the First Quarter. This was resolved hence improvements in subsequent quarters.

1.33Number of updates/reviews on the fixed asset register of the Department to achieve the best match of assets with service delivery objectives

2 2 2 0 -

1.34Development and approval of the procurement plan of the Department as part of efforts to improve planning and budgeting






1) Expenditure: Capital projects were not completed and paid within the 2013/14 financial year resulting in under spending. This mainly relates to the procurement of the disaster recovery plan, vedio conferencing and

installation of new telephone system. Application for rollover for the 2013/14 funds will be submitted to Provincial Planning and Treasury in 2014/15 where eligible.


• None

Linking Performance with Budget

2013/2014 2012/2013

Sub- Programme Name Final Appropriation

ActualExpenditure

(Over)/Under Expenditure

Final Appropriation

ActualExpenditure


R’000 R’000 R’000 R’000 R’000 R’000

Deputy Director General – Administration 4 916 4 915 1 2 620 2 534 86

Premier’s Core Staff 14 546 14 538 8 11 258 10 792 466

Director General’s Office 15 755 15 752 3 14 617 13 960 657

Strategic and Operational Support 20 689 20 688 1 `15 515 15 066 449

Human Resource 26 523 26 519 4 23 759 23 414 345

Financial and Supply Chain Management 45 037 44 231 806 33 102 33 006 96

TOTAL 127 466 126 643 823 100 871 98 772 2 099


53

Goals and Objectives Applicable to this Programme


Strategic Goal 1: Position the Office of the Premier as a strategic leader and effective centre of coordination of service delivery in the Province

Build a people focused organisation

Ensure that the institution of the state are reflective of the demographics of the society

Effectively coordinate and build the capacity of the public sector towards social and institutional transformation

Strategic Goal 2: Coordinated and integrated service delivery in the Province

Ensure sound organisational integrity inclusive of human resource, financial, risk and supply chain managerial practices and systems.


B4.2 Programme 2: Institution Building and Transformation

Programme PurposeTo provide institutional development and organisational support services to ensure that the Provincial Government has sufficient capacity to effectively and efficiently deliver on its mandate. The programme has the following sub-programmes:-Sub-programme 2.1: Deputy Director-General Sub-programme 2.2: Transversal Organisational Development and

Consultancy ServicesSub-programme 2.3: Information Communication Technology

Management

Sub – Programme Reports

Sub-Programme 2.1: Deputy Director-General • Please refer to core sub – programme reports

Sub-Programme 2.2: Transversal Organisational Development and Consultancy Services

Performance Highlights 1) The appointment of the full team of 13 HoDs and the facilitation of the

development of credible HoD Performance Agreements served to ensure Leadership and Executive Management stability in the Provincial Departments as well as guaranteed availability of the critically needed strategic direction and focus to facilitate service delivery.

2) The consistent provision of hands-on Human Resource (HR) technical support, facilitation, coordination, monitoring and reporting resulted in the entrenchment of the imperative of compliance to the extent that:

12 departments conducted HR effectiveness surveys and developed turnaround plans

11 departments had credible revised annual human resource plans9 departments submitted credible six monthly and annual human

resource implementation reports12 departments had approved Human Resource Management (HRM)

delegations10 departments had approved employment equity plans (with 3

under review) and the equity status improved slightly to 37% women representation whilst disability remained at 0, 4%.



implementation and that general empowerment to facilitate effective performance management in the Provincial Departments occurred.

6) Established a relationship with the South African Board of People Practices (SABPP) and successfully facilitated Provincial Government’s participation in the Provincial Launch of the National HRM Standards where Provincial Departments were well represented and facilitated registration with the SABPP by the Provincial HR Practitioners. The SABPP is the professional organisation for HR Practitioners and provides all education and training quality assurance for the HRM discipline. The HRM Standards will serve as a national benchmark to improve HR Practices whilst professional membership by departmental HR Practitioners will dovetail with the Provincial Culture Change Programme to enhance professionalism in the Public Service.

7) Effectively coordinated and supported the implementation of the Employee Wellness Policy Framework through:An Employee Wellness Audit throughout the Provincial Government

to evaluate Program Implementation against the National and Provincial Employee Health and Wellness Framework, the level of mainstreaming of employee wellness to departmental strategies and plans, and the appropriateness, positioning, structure and allocated budget of the Programme in each department

Conducting an in-depth investigation into the state of PILIR Management at the Department of Health complexes of East London, Nelson Mandela and Mthatha Health. The findings revealed a serious problem of poor and mismanagement of PILIR applications in the Department of Health

Provision of hands-on support to the Department of Education to process a stock-pile of PILIR backlogs that have proven to have far reaching implications, inter alia, for productivity, the compensation of employees, leave management and the ability to recruit or not to

3) The analysis of departmental ARPs against HR Plans, Job evaluation requirements, Core vs Support ratio norms, budget and existence of Recruitment Project Plans enabled the PCMT to make informed determinations with respect to approving or not approving ARPs as well as ensuring that departmental compensation of employees was contained as a financial discipline practice. The ARPs of all 13 departments were approved for implementation. 1 618 out of the 2 529 ARP vacancies (64%) were reported as filled by the end of the financial year.

4) Collaborated with DPSA to strengthen policy awareness, effective policy implementation and general compliance in the Provincial Government through workshops and one – on – one sessions with departments on: Diversity Management issues which assisted departments to draft plans to implement the Gender Equality and Job Access Strategic Frameworks in support of their Equity Programmes; The DPSA HRM Compliance Framework which complements Provincial Frameworks thus providing comprehensive guidance to the work of HRM in the Province and on compliance, in general and; Employee Health and Wellness to build capacity on Gender Sensitive and Rights Based HIV & AIDS mainstreaming in the Public Service, Submission of department-specific draft Operational Plans, Consultation on the Draft Sports Guidelines for the Public Service and the Monitoring and Evaluation Framework for the Public Service.

5) The validation of the contracts of the Top Management of the Provincial Departments, the securing of HoD support for PMDS through one – on – one sessions and the training of HR Managers & Senior Managers, some District Directors and HR, Human Resource Development (HRD) & PMDS Practitioners on the PMDS Toolkit all sought to support the institutionalisation of PMDS in departments as well as strengthening the continuous efforts that are aimed at improving compliance in respect of contracting, reviews, annual assessments and the clearing of backlogs. The feedback that was received confirmed that participants were refreshed on PMDS Policy matters, were effectively updated on the reviewed aspects of the Policy, the uninitiated were equipped with the appropriate content and tools required for effective PMDS Policy



10) The Specialists deployment in the Departments of Education and Health built on the strong foundation of in-house technical support that was laid in the previous financial year and continued to assist these departments to improve in the areas of Document Management, Organisational Design, Business Process Mapping, HR Information Management, Strategic HRM and Culture Change.

11) The quarterly HR Status and Management Information System Reports to the HoDs and EXCO provided consistent and updated information on the state of management of human resources in the Provincial Government thus empowering those saddled with departmental leadership responsibilities and accountability to reflect and act.

12) Facilitated the coordination and participation in the EXCO Outreach programme in the District of Alfred Nzo, O.R. Tambo, Cacadu as well as Chris Hani District Municipalities. A total of fifty five (55) Service Delivery sites were visited and a number of Service Delivery Challenges were resolved and these were related to the Department of Health and Education. Therefore, follow ups are constantly being made on some Service Delivery issues to remove bottlenecks. The EXCO Outreach also included the Public Service Month that was coordinated by the National Department of Public Service Administration. Public Service Engagements were conducted where all approved Provincial Policies were communicated to all employees at District and Local level. Local level institutions were therefore supported to resolve Service Delivery Challenges as Institutional Support Service’s programmes intended to capacitate and empower institutions with much needed skills to improve the institutional performance.

13) With regard to the Provincial Culture Change programme, all Provincial Departments were supported to develop and implement their “Must win” Projects. Up to eighty five (85) Change Agents across from Provincial Departments were trained on Culture Change. They were trained on Coaching and Mentoring in order to facilitate systems wide

recruit.

The tracking of injury on duty cases and related debts as well as the facilitation of registration of Private Health Institutions and Doctors that had given up on ever being paid by government departments, yielded a breakthrough that has seen the Departments of Health, Transport and Social Development & Special Programmes starting to make payments to: St Dominic’s – East London; Life Beacon Bay – East London; St Marks Hospital – East London.; East Coast Radiology – East London; St Mary’s Hospital – Mthatha. This broke the stalemate thus re-opening the doors for government employees to these health institutions again.

8) An engagement with 7 provincial unions to discuss the proposal to establish a Provincial Labour – Management Superstructure to oversee improvement of Employment Relations in the Province (without necessarily undermining existing formal structures and processes) took the Provincial Government a step closer to realising one of the objectives of the Employment Relations Management Strategy of ‘Managing the Relationship with Unions’. The engagement resulted in a set of Action Items for Way Forward. The consistent and effective quarterly monitoring of the Disciplinary Landscape (Misconduct cases, Grievances, Disputes and Appeals); Analysis of status and trends; Reporting to the Administrative & Political Executives; and Feedback to departments strengthened the efforts that are aimed at continuously improving the relationship of the employer with individual employees so as to ensure a stable relationship and an environment that is conducive to the achievement of organisational objectives.

9) Effectively coordinated the Employer responsibilities in respect of the coordinating provincial chamber of the Public Service Co-ordinating Bargain Council and the Provincial Chamber of the GPSSBC through Employer caucuses and provision of leadership to the Employer delegation in those Chambers. This has ensured stable and progressively effective platforms and channels for Employer – Labour engagement in the Province.



all Provincial Departments were capacitated through this intervention.

17) The Office of the Premier also supported four departments with the validation of Organograms (Structures). These departments are Local Government and Traditional Affairs (DLGTA), Department of Rural Development and Agrarian Reform (DRDAR), Department of Provincial Planning and Treasury (PPT) as well as the Office of the Premier. Therefore, these departments have now approved organograms which are being implemented. Other departments are at various stages of consultation in terms of reviewing their structures.

18) All departments were supported with the Job Evaluation processes through the Provincial Job Evaluation Central Quality Assurance. Departments were assisted with Job Evaluation on an ad-hoc basis as they were at different stages of implementing their annual recruitment plans.

19) Successful completion of the Advanced Leadership Programme (ALP) increased the leadership capability at our Supervisory levels.

20) The capacity of the Province to implement the Compulsory Induction Programme improved with the training of 18 departmental staff as Assessors. A group of 47 SMS members were inducted to ensure that Leadership drives the Development Agenda of the Province.

21) The implementation of the Women in Leadership Programme in Departments will enhance the competence of Women Leaders in the Province.

22) Two Sector Education and Training Authorities, namely Services Seta and Transport Seta invested R 10m in developing skills and therefore improving the skills profile of the Province;

change in an Organisation. Dynamic Enquiry interviews were conducted and the Departmental Must Win projects were developed based on the outcomes of the Dynamic Enquiry interviews. It is worth mentioning that the Technical Assistance Unit from the National Treasury played a vital role in supporting this programme and their support will continue until end of November 2014 as the Memorandum of Agreement has been signed by Technical Assistance Unit and the Office of the Premier (OTP) for 2014. Provincial Departments are at various stages of implementing their Culture Change Projects. This programme supported Provincial Departments to improve the Organisational Performance towards ensuring impeccable Service Delivery.

14) The OTP participated in the coordination and planning of the Global Innovation and Technological Entrepreneurship Forum which was hosted by the Eastern Province. This forum was a platform where Entrepreneurs from (60) countries shared the ideas on Economic Development through Technological Innovation. Provincial SMME’s participated and benefited as ideas were shared by international experts on Economic Development through Innovation. It was the first time the Global Forum on Innovation hosted in Africa as it was attended by more than 600 delegates from various countries.

15) With regard to Innovation, the Office of the Premier supported all Provincial Departments to develop and implement their Innovation and Knowledge Management Strategies. The Departmental Strategies focused on assisting Provincial Departments to become Best Practice Departments through Innovation and various knowledge management practices. Subsequently Knowledge sharing platforms were created in order to facilitate knowledge flows and replication of successful stories as well as Innovative ideas to improve the Organisational Performance.

16) Provincial Departments were supported to develop and implement their Service Delivery Improvement Plans. This was achieved with the assistance of the DPSA. This was intended to improve the quality of Service Delivery offered by sector Departments. Ultimately



23) An additional 564 students at Institutions of Higher Learning in the Province benefitted from the additional R20m made available to National Student Finance Aid Scheme (NSFAS).

24) 47 Engineering Graduates completed their P 1 and P 2 training;





Actual Achievement

(2013/14)

Deviation from Target

for 2013/14Comment on Deviations

2.1Number of departments conducting HR Effectiveness & Capacity Assessment and developing credible improvement plans

New Indicator 13 11 2

The DHS and DRPW 2012/13 assessment was only submitted during March 2014, unsigned and without an improvement plan. Compliance in the next cycle will be enforced with consequence management.

2.2Number of departments with credible revised annual human resource plans by the end of June 2013


DRDAR Annual Adjusted HRP was not approved by the HoD. While the Department of Safety and Liaison did not have an Annual Adjusted HRP. Compliance in the next cycle should be enforced with consequence management.





Actual Achievement

(2013/14)



2.3Number of departments submitting credible six monthly and annual human resource implementation reports


Departments of Social Development and Special Programmes, Education, Rural Development and Agrarian Reform did not submit both the Annual and Six monthly reports. Department of Transport did not submit the annual report while Department of Safety and Liaison did not submit the six monthly reports.

DSDSP and DoE and Department of Transport did not have a plan to report on. Compliance in the next cycle should be enforced with consequence management.

2.4 Number of departments with credible Annual Recruitment Plans New Indicator 13 13 0 -

2.5Percentage of provincial executive management posts filled within 6 months of them being vacant

New Indicator 100% 44% [7 out of 16 posts]

46% [9 out of 16 posts]

Scarce skills and clashing commitments of panel members results in delays in filling posts. Head-hunting will be considered in light of the delays that are occasioned by scarcity of skills. The Department will also seek formal commitment from EXCO that all MECs avail themselves as much as possible especially in light of the up-coming recruitment of 7 HoDs in the Second Quarter 2 of 2014/15.

2.6 Number of departments implementing credible HRM delegations New Indicator 13 10 3

DoE have no approved delegations. DSDSP and DHS have approved HRM delegations but to date have not submitted any implementation reports. Decisive action will be taken at the executive level for non-compliance.

2.7 Number of departments with credible HoDs performance agreements by 31 May 2013. New Indicator 13 13 - -






Actual Achievement

(2013/14)



2.8Number of departments conducting credible performance reviews and evaluations for their Heads of Departments

New Indicator - - - -

2.9 Number of departments implementing employee wellness programmes New Indicator 13 13 0 -

2.10Number of departments implementing Policy and Procedure on Incapacity Leave and Ill-health Retirement framework effectively

New Indicator 13 13 0 -

2.11 Number of departments implementing employment relations strategies New Indicator 13 13 0 -

2.12Number of departments with approved organizational Structures for the current Medium Term Strategic Framework (that is since 2009/10 financial year).


9 Departments have not finalised their review of Structures and these are: Transport, Safety & Liaison, Health, Education, Soc Dev, RPW, DEDEAT, Human Settlements, and DSRAC. Despite the technical support provided to departments they continue to create more posts which are not funded resulting in it being sent back for review by the OTP. The OTP will develop procedure manual for the Organisational Development Policy in order to assist and provide further support to departments.

2.13Number of departments with credible human resource planning, recruitment and selection and leave management business processes

New Indicator 13 13 0 -






Actual Achievement

(2013/14)



2.14 Number of departments implementing culture change strategies New Indicator 13 13 0 -

2.15 Integratedorganizational performance assessment framework and tool developed New Indicator 1 1 0 -

2.16 Number of departments implementing revised Service Delivery Improvement Plan New Indicator 13 13 0 -

2.17Number of department implementing the Innovation and Knowledge Management Strategy


Only 5 Departments have identified and collected best practices and these are: RPW, Transport, DRDAR, Health and DEDEAT. Lack of Support, Commitment and unavailability of reliable Permanent Structures from Provincial Departments are the results this partial achievements

2.18Number of middle and senior managers trained through the leadership development programme

New Indicator 80 77 32 managers dropped out of the Programme due to personal reasons while 1 resigned from government and therefore could not continue with the Programme.

2.19 Number of women participating in the Women in Leadership Development Programme New Indicator 30 33 +3

3 additional officials joined during the course on the Programme. This was after the target had been set. This had no negative impact on the resources as the margin was not significant

2.20Number of public servants trained in specific key areas in line with the Public Sector Transformation Strategy

New Indicator 600 621 +2121 additional officials joined during the course on the Programme. This was after the target had been set. This had no negative impact on the resources as the margin was not significant






Actual Achievement

(2013/14)



2.21Number of unemployed young people trained in specific skills areas as part of the strategic skills development initiative

New Indicator 1 000 1 514 +514

The close working relationship with merSETA has resulted in Department being able to place more unemployed youth in skills programmes than was planned. The FET Placement project has also seen the placement of 785 FET Students, not included yet as they are still in training. This project will see at least 1,000 FET Students placed in workplaces in 2014/15.


limited success. Steps have been taken by OTP to increase the HRM capacity in departments via seminars and training programmes.

2) Finalisation of the Integrated Management Training Programme has been delayed due to technicalities related to the tender process. The bids received for this tender were far in excess of the budgeted funding and alternate means of providing training had to be sought. An interim plan has been implemented to provide essential training and a new procurement process has been embarked on.

Strategy to Overcome Areas of Under Performance1) Limited human resource management capacity relating both to skills

and personnel in departments has led to non-compliance with respect to compilation and submissions of plans and reports timeously. In some cases the plans are not developed and reports are not compiled at all. The impact of this is poor provisioning of human resource function, thus resulting in reputational damage to the Province. One-on-one sessions have been held between OTP and the respective departments in order to address the causes of the non-compliance. This approach has achieved


Performance indicator

Changes to Targets



indicator

The Number of departments conducting credible performance and evaluations for their Heads of Departments

13 departments -At the time of planning OTP had been given the responsibility to conduct annual performance evaluations for HoDs. Subsequently, this responsibility reverted to the Public Service Commission. It is therefore recommended that the target be removed from the Annual Performance Plan (APP).

2.8


62

and support.

5) An Eastern Cape Broadband Initiative Framework document has been developed by the Eastern Cape Task Team as per the SIP 15 Working Group Initiatives. This project will have a positive impact on the connectivity challenges experienced in the province specifically as it relates to schools connectivity. OTP has mandated ECSECC as a coordinating entity for this project including the assessment of where, how and when is the Province will achieve the basic goals of access to Government Information.

6) Geographical Information System (GIS) training. The unit trained a total of 306 Geography Educators in usage of GIS Tools in-line with the “Train-the-Trainer” Program of Action. This included

• the Monitoring of key Provincial Strategic Infrastructure Projects (SIPs) as guided by the National Development Plan;

• Spatial referencing of Government Information that encompasses the location of schools, hospitals, clinics to make informed decisions.

• Partnerships with key Provincial Stakeholders

7) The relationship between SITA and the OTP is guided by the business agreement that was signed between the two entities in 2008. Further to the agreement there is commitment by SITA to provide services to the Provincial Administration through a Mandatory and non-mandatory Service Level Agreements (SLA).This Business Agreement between SITA and the Provincial Administration expired on the 4th of November 2013 and was reviewed by the Provincial Government Information Technology Officer’s Council through the guidance of the Provincial

Sub-Programme 2.3: Information Communication Technology Management

Performance Highlights 1) The Control Objectives for Information and related Technology

(COBIT) 5 Process Assessment Maturity model for the 13 departments has been completed and a summary report produced for each department. Most departments do comply with the DPSA ICT Governance framework implementation guide for Phase 1 which is an enabling policy environment for ICT Governance.

2) 12 Departments developed and approved the ICT policy documents and established ICT Governance Steering Committees which are actively functional. This is in line with the ICT Governance Project spearheaded by the OTP as guided by the DPSA ICT Governance Policy Framework of ensuring that all the provincial departments adhere to DPSA ICT Governance Rollout Plan.

3) All 13 Departments have aligned the Risk Management and Internal Audit Plans with ICT Risk Plans in implementation of the Provincial ICT Governance Project. This will ensure a control in ICT related risks within Departments.

4) High-level monitoring based on SITA performance has been implemented and reported on a quarterly basis to the Governance and Administration Cluster using the ICT standard performance metrics. This is ensuring the proper monitoring of SITA performance in the Province. The monitoring resulted in identification of gaps and challenges that SITA was experiencing regarding skills resources in Solution development



63

8) All SITA and ICT related SLAs were reviewed due to non-performance of SITA in provisioning of these services and recommendations approved by the Executive Management. This resulted in cancellation of non-mandatory services from SITA and complemented by hiring of warm bodies for various ICT initiatives. The main recommendation being the reduction of dependancy on SITA for non mandotery serives and complementing this by appointing people on the structure.

Chief Information Officer and approved by the Executive Management. This exercise was based on the performance analysis of these services that are provided by SITA to the Provincial Administration for the past 5 years.

Performance against Set Targets




Actual Achievement

(2013/14)



2.22Number of departments implementing ICT Governance in accordance with the Provincial Framework


The Department of Health could not provide these documents and an intervention is in place to mitigate this risk. It is expected that this process will be completed in the first quarter of 2014-15.

2.23 Level of compliance of SITA with the Service Level Agreements New Indicator 100%

68% [average performance of the 4 quarters]

32%

This could not be achieved due to skills resources shortage within SITA for Solution Development and support. This mainly affected service provision in the first half of the year but in the second half of the year the situation had improved

2.24 Level of implementation of the Provincial ICT Infrastructure Plan New Indicator 100% 80%

20% [this relates to the installation

and testing of the DR hardware

solution]

The DR Hardware Solution has just been awarded to a preferred bidder and the Department awaits its supply and installation in the First Quarter of 2014/15



64




Actual Achievement

(2013/14)



2.25Level of implementation of spatial referencing of government information through Geographical Information System (GIS)

New Indicator 100% 100%100% [all planned

activities were implemented]

-

2.26 Level of implementation of phase two of the IT Disaster Recovery Plan for Office of the Premier New Indicator 100% 35%

65% [relating to the installation

and testing of the disaster recovery

solution]

This target depended on the installation of the disaster recovery solution and therefore it could not be achieved. This will be done in the First quarter of 2014/15


has resulted in an improvement in the timely submission of invoices.

3) Delays in the SITA Procurement Process have affected the efficiency of service provision to the Department as in the timely procurement of anti-virus software (ESET NOD32). This risk was mitigated by the Department negotiating an extension of the existing license.

Changes to Planned Targets• None


1) Delays with procurement processes: Some approved infrastructure projects could not commence due to delays in the SCM processes which affected the implementation of the disaster recovery solution of the OTP and the Video Conferencing Project. This also has negatively affected the management of the capital budget of the unit. The Department will improve its procurement planning processes to ensure this challenge is addressed.

2) The late submission of SITA invoices resulted in deviation from the cash flow projections thereby not only affecting ICT financial performance but also the Department finances. However, a management plan was devised and its implementation is monitored both by SITA and OTP. This




2013/2014 2012/2013


ActualExpenditure


Final Appropriation

ActualExpenditure


R’000 R’000 R’000 R’000 R’000 R’000

Deputy Director General - IBT 8 574 8 555 19 9 183 8 521 662

TODCOS 75 150 75 148 2 40 328 40 277 51

ICT Management 99 664 86 950 12 714 107 170 106 812 358

Total 183 388 170 653 12 735 156 681 155 610 1 071

The Strategic Goals and Objectives Applicable to this Programme



A comprehensive Programme of Action Developed and Institutionalised

Policy co-ordinated effectively

Provincial M&R and E framework fully implemented

Facilitate Medium Term Expenditure Framework planning within the Provincial Government

Co-ordination of a policy research agenda

B4.3 Programme 3: Policy and Governance

Programme PurposeTo facilitate the integrated implementation of the electoral mandate of the Provincial Government and oversee governance and service delivery in the Province. The Branch consists of the following sub-programmes:Sub-programme 3.1: Office of the Deputy Director GeneralSub-programme 3.2: Performance Monitoring and EvaluationSub-programme 3.3: Service Delivery Intervention & Coordination Support Sub-programme 3.4: Policy, Planning and Research Coordination


66

3) Two evaluations have been concluded: A Rapid Appraisal of the Transversal Training Programme implemented in the province and A Rapid Appraisal of Infrastructure Conditional Grant Expenditure in the Eastern Cape. The Evaluation of Transversal Training in the Province revealed that there is a need for improved planning and management of the transversal training programme, especially in the following areas: identification and selection of training participants, the matching of the skills demand and the content and placement of trainees in programmes, as well as the quality of the training provided. In addition, the management of the Service Level Agreement with the facilitators of the programme would improve the overall governance of the programme, and ensure that the outcomes are achieved as envisaged. The Rapid Appraisal of Infrastructure Conditional Grant Expenditure revealed a need for a more in-depth study of this subject matter, since it requires a broader sample of participants in order to generalise the results of the Rapid Appraisal.

4) Improvements in front-line service delivery were initiated through the monitoring of service delivery at 16 sites in the 2013/14 Front Line Service Delivery Programme (FSD) programme implemented in collaboration with the Department of Performance Monitoring and Evaluation (DPME). Amongst others, critical service delivery complaints raised by citizens through the FSD programme were resolved through an integrated approach between the Office of the Premier, DPME and the Department of Health. This resulted in improved service delivery to citizens at the Meje Clinic at Mbongeni Location in Mbizana. An integrated FSD Monitoring Annual Plan for 2014/15 financial year has been developed together with implementation partners and the DPME, and training of an integrated monitoring team has been completed. This will improve government performance at points of service delivery, and its monitoring.

5) Provincial Coordinating and Monitoring Team was convened for the approval of departmental Annual Recruitment Plans, so as to ensure that the Human Resource Planning (and expenditure there-on) is aligned to the service delivery mandates of Provincial departments. The PCMT, which is the institutional mechanism by which the three

Sub – Programme Reports

Sub-Programme 3.1: Office of the Deputy Director General• Please refer to core sub – programme reports

Sub-Programme 3.2: Performance Monitoring and Evaluation

Performance Highlights1) End of Term and 20 year Review Reports compiled. The reports

provide evidence on performance of government and contributed to policy discussions pertaining to the new term. The reflection on performance over the past 20 years of democratic governance, with a specific focus on the last five years of the period, demonstrated that there have been significant developments in the province in the areas of economic growth and investment commitment in economic infrastructure, social infrastructure delivery (especially access to basic services), improvements in education and health, as well as in-roads in building the capacity of the state to deliver services. This is positive, in the face of the negative impact of the global economic crisis on the achievement of the development goals of the province. For example, more people have access to Anti-Retroviral Treatment at more facilities than in 1994, and in 2009, and more jobs have been created through the Expanded Public Works Programme than were targeted at the beginning of the term.

2) Cluster Reports on the performance of the province against the PSF Priorities over the current term were analysed packaged, submitted and presented to the Provincial Management Retreats and EXCO Makgotla. These reports further contributed to reflections on managing performance of government and contributed to policy discussions pertaining to the new term. In addition, the State of Governance and Service Delivery report and the Forum for South African Directors General (FOSAD) report on governance and administration indicators were produced in preparation for the Mid-year EXCO Lekgotla. These reports were presented to the EXCO Lekgotla and supported the Provincial Policy discussions.







Actual Achievement

(2013/14)



3.1 Number of Departments submitting credible quarterly performance reports 13 13 13 0 -

3.2 Number of Provincial performance oversight reports processed.

4 3 5 +2PCMT oversight sessions were held with departments on their Annual Recruitment Plans. These were not part of the original schedule.

3.3Number of evaluations/impact assessment conducted to evaluate the impact of government policies and programmes on the lives of people in the Province

43 [the target was

revised from 3 to 2]

2 0 -

3.11 Number of departments conducting effective management performance assessments New indicator 13 13 0 -

3.12 Number of monitoring reports on the Provincial Management Oversight Plan/FOSAD Plan New indicator 3 3 0 -

3.13 Number of monitoring reports on frontline service delivery New indicator 3 3 0 -

Strategy to Overcome Areas of Under Performance• None



6) PME concluded the implementation of the MPAT 1.3 for the province, including hands-on support to departments in the “challenge period” instituted by the DPME. Full implementation and overall provincial improvement as a result of an intensified support programme by OTP was achieved. Additionally, all departments’ assessments were signed off by the HODs, which was a significant improvement from MPAT 1.2 in the province where only 4 departments had their evidence signed off by their HODs.

coordinating departments (Provincial Planning and Treasury, Office of the Premier and the Department of Local Government and Traditional Affairs) conducts oversight over the key governance and service delivery programmes of the province, is being re-positioned to be more effective in providing monitoring and oversight over the provincial priorities in the 14/15 financial year.

68




indicatorProposed Target/

indicator

3.3 Number of evaluations/impact assessment conducted to evaluate the impact of government policies and programmes on the lives of people in the Province

3 2

The Provincial Evaluation Plan for the 2013/14 financial year was presented to EXCO on 25 September 2013. Three evaluations were initially proposed in the Evaluation Plan; however, EXCO has approved only two of these evaluations to be implemented in this financial year.

Social Security Agency rolled out an outreach programme on 6th June 2013 in Lutshaya, Ward 18 of Port St Johns Local Municipality Local Municipality. The outreach programme was aimed at clearing existing backlogs on grant applications and a total of 338 applications for child support and old age grants were registered. The South African Social Security Agency has further opened access points which are operational on each Thursday of the week. This intervention has ensured that social services are provided to the poor thereby contributing to poverty alleviation.

3) EXCO Outreach Support: The Department successfully provided content support throughout the Executive Council Outreach Sessions which were held in Alfred Nzo District Municipality from 10-12 July 2013, O.R. Tambo District Municipality from 6-8 August 2013, Chris Hani District Municipality from 18-20 September 2013 and Cacadu District Municipality 25-27 September 2013. Pre and Post Service Delivery reports as well as action plans were developed for the EXCO Outreaches. The Action Plans are utilised to follow-up and measure

Sub-Programme 3.3: Service Delivery Intervention & Coordination Support

Performance Highlights1) Presidential Service Delivery Initiatives: In the spirit of public

participation, the Department coordinated the engagement of stakeholders, including communities, on the Strategic Infrastructure Projects 3 & 6 (SIP 3 & 6) which are part of the Presidential Infrastructure Coordinating Commission. The engagements were held in Alfred Nzo, Amathole, Chris Hani, Joe Gqabi and O.R. Tambo District Municipalities with an intention of providing stakeholders with the SIP3 implementation update in the province as well as to stimulate a conversation on how the municipalities can leverage and benefit from the existing opportunities, moreover, to solicit input and confirmation of projects so as to further enhance the task of the implementers.

2) Through the intervention and coordination support by the Department, as part of the Lutshaya Deputy President’s initiative, the South African



69

Other communities set to benefit from the housing project are Shukushukuma, Vergenoeg and Donkerhoek.

d) The Buffalo City Metropolitan Municipality has provided the Scenery Park community with six more toilets and they are cleaned on a regular basis as compared to the two the community of 74 households previously had to share before the complaint was lodged with the OTP. This has somewhat restored the dignity of the community.

e) In coordinating for a resolution of the complaint raised by the Tinana Development Forum in Joe Gqabi District Municipality, through the interaction with the Elundini Local Municipality, the unit confirmed that a contractor for a pedestrian bridge between Mjikelweni and Makhwahlana was appointed and commenced with the work on the 25th February 2014.

f) The Department coordinated relevant departments and municipalities on the Mount Pleasant settlement Service Delivery Complaint within Nkonkobe Local Municipality in Amathole District Municipality. The community members have since been granted a ‘Permission to Occupy’ status on the land so that they can receive some of the basic municipal services.

g) A breakthrough was also recorded in the St Lucy’s Hospital complaint in Mhlontlo Local Municipality: O.R Tambo District Municipality when the St Lucy’s Hospital Board finally agreed on the package of services to be prioritised in the St Lucy’s hospital revitalisation programme. Furthermore, the revitalisation of St Lucy’s Hospital will contribute positively in the drive to provide good quality health care in rural areas; along with the restoration of St Lucy’s heritage which has always been an outcry from the surrounding communities.

progress made by sector departments, municipalities as well as public entities in the implementation of commitments made by Provincial Leadership and address the issues raised. The Unit also played a pivotal role in ensuring that the issues raised during the previous EXCO Outreach sessions are implemented by responsible departments and entities.

4) Service Delivery Interventions: In terms of the service delivery intervention part of the unit’s mandate, the following is worth noting:a) The Department intervened by facilitating a speedy response to the

Keiskammahoek protest where-in a petition was handed over to the Office of the Premier. One of the main complaints was that their town was neglected and the service standards had deteriorated almost to the level of collapse. To address this challenge a cleaning and beautification campaign took place and it included the following: grass-cutting, tree-felling, tree-planting, filling of pot-holes, road marking, blading where necessary repairs of streets, repairs of leaking pipes, placement of garbage bins at strategic points, painting of the local school, establishment of a Local Organising Committee to coordinate future interventions etc.

b) Service delivery was facilitated in areas like the Matane village, Ward 11 in Port St Johns Local Municipality resulting in the opening of a satellite office by the Department of Social Development & Special Programmes in the area as well as the provision of Identity Documents to grade 12 learners by the Department of Home Affairs and maintenance of Access Roads (DR08151 & DR08152) by the Department of Roads & Public Works.

c) As a consequence of the Department facilitating intervention on the complaint about improper housing in the Pollar Park community, the Kouga LM in Cacadu District Municipality contracted a service provider on the 10th March 2014 which has started with pegging. The contractor has already been introduced to the community committee.



70

i) In the spirit of cooperative governance, working relations with the Public Participation Unit of DLGTA have been strengthened as a result their officials are continuously involved in service delivery interventions that the Department is working on.

h) The Department facilitated the delivery of temporary sanitation facilities to Ntapane and Nyangelizwe primary schools in Mthatha within the same month of receipt of request from the Presidency. The provision of the toilets by the department of Education contributed in restoring dignity of teachers and learners who were forced to relieve themselves in the nearby bushes. The construction of permanent water borne facilities is almost complete in both schools.





Actual Achievement

(2013/14)



3.4Quarterly monitoring of the implementation of the President’s and Premier’s service delivery initiatives

4 4 4 0 -

3.5 Percentage of EXCO Outreach commitments implemented 100% 100% 92% [610 out of

662] 8% [52 out of 662]

The remaining unresolved issues were not included in the departmental plans and budgets as a result these have not yet been attended to. Continuous follow ups are being made with responsible departments, both at district level and Head Offices, to ensure that matters are addressed. In addition, the Department will continue to escalate unresolved issues to the decision makers while simultaneously following up at various levels so as ensure that the matters are addressed

3.14 Quarterly reports on the implementation of service delivery intervention initiatives New indicator 4 41 37 The Department received more service delivery

requests for intervention than it was anticipated.







Actual Achievement

(2013/14)



3.6 Level of functionality of the government cluster system 100% 100%

100% [all planned activities

implemented]0 -

3.7 Number of departments with credible APPs that are aligned to the Provincial priorities 13 13 13 0 -

3.8 Number of departments with approved Infrastructure Delivery Plans New indicator 8 8 0 -

71

Sub-Programme 3.4: Policy, Planning and Research Coordination

Performance Highlights1) A five year (2009-2014) government cluster functionality review was

done. Results from the review highlighted a need for improvement as well as more integration. The importance of this report is that it outlines the history of the cluster system as a mechanism to improve oversight on implementing provincial policy priorities. The new planning tool and the Integrated Government Cluster Programme is currently what is used

by Cluster for Planning and Reporting on government priorities. The integrated cluster plan provides leadership with a clear mechanism to identify challenges around programmes and projects that are aligned to these policy priorities and propose mitigating strategies to unblock challenges and accelerate implementation.

2) A draft P-MTSF for 2014-2019 was developed and tabled at EXCO Lekgotla to reach consensus on the provincial priorities for the following 5 years. Sector departments were orientated on the draft PSF in order to align the strategic plans and APPs to the priorities. This will enhance the implementation, monitoring and evaluation of policy priorities over the next 5 years. These priorities were also consulted with local government municipalities through a collaborative approach with Local Government and Provincial Planning and Treasury with the aim of lifting provincial priorities into the Integrated Development Plans (IDP). A discussion paper that aligns priorities to outcomes and IDP indicators was developed and the paper has been deliberated in a two day workshop for endorsement at MuniMEC. This paper also addresses the long outstanding challenge of alignment vertical of the three tiers of government and sector department’s participation in the IDP process.


Strategy to Overcome Areas of Under Performance1) Resolution of EXCO Outreach Commitments: Continuous follow ups

are being made with responsible departments, both at district level and Head Offices, to ensure that matters are addressed. In addition, the Department will continue to escalate unresolved issues to the decision makers while simultaneously following up at various levels so as ensure that the matters are addressed



72




Actual Achievement

(2013/14)



3.9 Level of readiness to implement the National Development Plan in the Province New indicator 100% 100% 0 -

3.10 Youth Development Strategy approved New indicator 1 1 0 -

3.15 Quarterly review of ECSECC performance New indicator 4 4 0 -





2013/2014 2012/2013


ActualExpenditure


Final Appropriation

ActualExpenditure


R’000 R’000 R’000 R’000 R’000 R’000

Deputy Director General - Policy & Governance 2 585 2 116 469 2 173 2 135 38

Performance Monitoring & Evaluation 6 910 6 732 178 4 940 4 259 681

Service Delivery Intervention & Coordination Support 9 461 8 890 571 638 580 58

Policy Planning & Research Coordination 63 577 63 509 68 65 991 65 875 116

Total 82 533 81 247 1 286 73 742 72 849 893



B4.4 Programme 4: Executive Support Services

Programme PurposeTo render effective and efficient Executive Support services to the Provincial Government, Office of the Premier, Executive Council and Provincial Executive structures through provision of seamless administrative assistance and implementation of inter-governmental relations, provincial communications, cabinet support and protocol services and legal support services. The Programme is structured as follows:Sub-Programme 4.1: DDG’s OfficeSub-Programme 4.2: Cabinet Support and Protocol ServicesSub-Programme 4.3: Provincial CommunicationsSub-Programme 4.4: Inter-governmental and Stakeholder RelationsSub-Programme 4.5: Legal Services (Office of the Chief State Law

Advisor)

Strategic Goals and Objectives Applicable to this Programme


Strategic Goal 3: Strengthen good governance, corporate governance and public participation

Lead and manage the provision of Executive support to the Premier, Executive structures and the Provincial GovernmentStrengthen Executive and IGR Structures of Provincial Government

Improve mechanisms for effective engagement with civil society

Enhance the image of Provincial Government and the Eastern Cape

Strategic Goal 4: Position the Office of the Premier as a Strategic Leader and effective centre of coordination of service delivery

Provide strategic leadership and support to the Department and Provincial administrationEnhance compliance with the Constitution and other prescripts

Sub–Programme Reports

Sub-Programme 4.1: DDG’s Office• Please refer to core sub – programme reports

Sub-Programme 4.2: Cabinet Support and Protocol Services

Performance Highlights During the 2013/14 financial year the performance highlights for the Cabinet Support and Protocol Services are as follows:

Effectively facilitated and coordinated 24 Cluster meetings, 19 Cabinet Committee meetings, 13 Executive Council meetings, 9 Provincial Management meetings, 2 Provincial Management Retreats and 2 Executive Council Makgotla meetings.

The unit successfully coordinated Workshops on the Cluster Systems which was subsequently endorsed by the Executive Council.

Successfully participated in the Executive Council Outreach in the following district municipalities; Alfred Nzo, OR Tambo, Chris Hani and Cacadu. Successfully coordinated alignment of Programmes of the Executive Council and Legislature, and reports were submitted to the Executive Council.

Protocol Services were efficiently provided to the President (when visiting the Province), Premier, and Strategic Provincial events and during the funeral of the late former President Mr N. Mandela.

All these activities listed above have enhanced service delivery to the Province.







Actual Achievement

(2013/14)



4.1 Number of reports on secretariat and protocol services rendered to executive structures 4 4 4 0 -


• None


• None

Sub-Programme 4.3: Provincial Communications

Performance Highlights 1) The provincial communication strategy (2012-2016) was reviewed

and the annual communication programme of action was developed and executed, various communication programmes were implemented to disseminate government programs and showcased successes.

2) The perceptions on the performance of the Provincial Government was at 38% in the fourth quarter, the performance of the Provincial Government of key priority areas reflect Health and Education as our best performers in the Province for the last three quarters consistently, with rural development and Job creation worst performers.

3) The has been and slight increase in terms of public confidence to the Provincial’s government’s ability to deliver, though the target of 40%

was not achieved, in the fourth quarter 38% of people of the Eastern Cape rated the provincial government as going in the right direction whilst 49% rating provincial government as going in the wrong direction.

4) In net media coverage of the Province a percentage of 6% was achieved against the target of 5% with the State of the Province Address media strategy and the communication strategy for the period leading up to the end of the fourth term of government being the key drivers of positive net media effect. However towards the end of the fourth quarter the province experienced element of net negative media effect due to service delivery protests linked to the beginning of the electioneering period.

5) As part of execution of the Leadership profiling strategy speeches were drafted for the Premier and media rapid response were issued to explain government position on various matters in the public domain resulting in government voice being present in the battle of ideas.

6) In implementation of the marketing strategy the following campaigns were conducted: The Home of Legends phase one was implemented that included

nominations of home of legends.Celebration of the 20 years of freedom in various platforms to

change negative perceptions and disseminate information about government programs


75





Actual Achievement

(2013/14)



4.2Percentage of people rating the Provincial Government and Eastern Cape province positively

35% 40% 38% 2%Public confidence on service delivery at local level has dropped. The Department will step up efforts to profile achievements by the Provincial government since 1994.

4.3Percentage of net positive media representation of the Provincial Government in the media domain

5% 5% 6% +1%The government received positive coverage during the last quarter of the financial year because of the events such as the SOPA and Budget Speech

4.4Percentage of resolved public enquiries as registered and tracked on the Presidential Hotline.

50% 60% 77% [5 448 out of 7 115]

+23% [1 667 out of 7 115]

Training of Parliament Liaison Officers in Departments and municipalities through the support of SETA has resulted in improvements on this indicator.


Strategy to Overcome Areas of Under Performance1) Rating of the Provincial Government and the Eastern Cape

Province: The plan to improve public perceptions has been developed with increased reputation management campaigns and unmediated stakeholder sessions with communities where leadership popularise government programmes.


Sub-Programme 4.4: Inter-Governmental and Stakeholder Relations

Performance Highlights 1) EXCO Outreach Engagements: The Intergovernmental and

Stakeholder Relations Sub-programme participated in the process of revising the EXCO outreach model to take into consideration the aspirations of EXCO for enhanced engagements with stakeholders and communities on Government’s programmes. The revised EXCO model which outlined the structure of all engagements was approved by EXCO. It provided for an EXCO outreach programme that runs over a period of three days with separate sessions dedicated for inter-governmental relations, engagements with stakeholders and public servants and a community engagement.



cross cutting Government priorities. Key cross cutting issues discussed during the last PCF session included debt owed to municipalities and progress on municipal infrastructure grant budget and expenditure. The PCF also received and discussed reports on infrastructure development, in particular, roads, supply of water and electrification as well as progress in jobs creation through the extended public works programme.

Political MuniMec: To strengthen the functionality of intergovernmental relations (IGR) structures through effective implementation of the Provincial IGR Strategy, the IGR Unit of the Intergovernmental and Stakeholder Relations Sub-programme participated in the Political MuniMecs which were convened on the 20 November 2013 and 13-14 March 2014 in the Nelson Mandela Bay Metropolitan Municipality. Issues discussed at the Political MuniMecs included the need to speed up delivery of bulk water especially in the Cacadu and Joe Gqabi District Municipalities, provision of electricity grid to rural municipalities, outstanding debt owed to municipalities by provincial departments, participation of national departments in Integrated Development Plan (IDP) processes and participation of all spheres of Government in the celebrations of 20 years of freedom.

The IGR component supported the convening and hosting of the Technical IGR Forum hosted by the Nelson Mandela Bay Metropolitan Municipality, the Cacadu and OR Tambo District Municipality District Mayoral Forum. At these fora concern was raised on the issue of debt owed to municipalities by the Department of Education and the Department of Roads and Public Works as amounts owed continued to escalate. These were issues that were resolved and made part of the action list for consideration for the next MUNMEC sitting.

IDP Processes: To enhance participation of sector departments in IDP engagements with a view to strengthening integrated planning, support was provided to Alfred Nzo District Municipality, Joe Gqabi District Municipality, Chris Hani District Municipality, OR Tambo District

Four EXCO outreach sessions were organised at Alfred Nzo, O.R.Tambo, Chris Hani and Cacadu District Municipalities. The remaining EXCO outreach sessions at Joe Gqabi District Municipality, Amathole District Municipality, Buffalo City Metropolitan Municipality and Nelson Mandela Metropolitan Municipality were cancelled after several efforts to schedule these were unsuccessful due to competing programmes and the onset of the electioneering season. The lessons learnt from the EXCO outreach sessions held during the period under review would inform the rolling out of future engagements and consultations with various stakeholders on accelerating the pace of service delivery in the Province.

2) Community and Stakeholder engagements Post State of the Province Address (SOPA) 2014: Engagement sessions were facilitated and held in March 2014 for the Executive Council to consult communities and stakeholders on policy issues raised in the State of the Province Address that was delivered by the Premier on 21 February 2014. A total of four sessions were hosted, the first one was held with the Provincial stakeholders at the Buffalo City on 03 March 2014 and three additional sessions with communities and stakeholders in Joe Gqabi District Municipality on 05 March 2014, Chris Hani District Municipality on 25 March 2014 and Cacadu District Municipality on 27 March 2014.

Provincial Military Veterans Programme: Subsequent to the first meeting held in Gauteng in April 2013, a process to implement a recommendation to establish a provincial Coordinating Committee of the Military Veterans Programme was initiated. Correspondence to the Heads of the Provincial Sector Departments led to the confirmations of the nominated departmental Representatives who will be members of the Coordinating Committee.

3) Premier’s Coordinating Forum (PCF)The Premier’s Coordinating Forum was convened on 30 April 2013 to unblock service delivery challenges and share information on meeting



and therefore not budgeted for. It was resolved that the intervention of leadership was necessary to obviate this challenge by directing that these funds be quarantined so that they could be disbursed to assist those affected by disasters should circumstances so require.The Provincial Disaster Management Steering Committee also considered proposals for measures to be instituted to assist areas in Cacadu and Joe Gqabi District Municipalities which were affected by drought. There were reports of damage caused by a storm which hit Ntabankulu in the Alfred Nzo District Municipality. The Provincial Disaster Management Centre assessed damage caused and was looking at measures to assist and provide relief to those affected.

5) International RelationsFrance: The Department provided technical support to preparatory processes for the meeting between the Premier and the Ambassador of France to South Africa, Ms Elisabeth Barbier, which took place on 15 November 2013. During their discussions, the Premier and Ambassador Barbier agreed to promote cooperation between the Eastern Cape and equivalent second tier authorities in France in the areas of renewable energy, agro-processing and exchanges between institutions of higher learning (with priority given to disciplines relating to agrarian reform and rural development).

Indonesia: The Ambassador of Indonesia resident in South Africa, His Excellency Mr Sjahril Sabaruddin visited the Eastern Cape on 28 November 2013 to further the commitments made during the visit to Indonesia by a delegation led by the Premier Honourable Ms Noxolo Kiviet. During the reciprocal visits, the Eastern Cape and Indonesia explored opportunities for bilateral cooperation to be established between the two parties. During their meeting, the Premier and Ambassador Sabaruddin agreed that the Premier would invite the Governor of Riau Islands (which is situated in Indonesia) to visit the Eastern Cape in 2014 to sign a twinning arrangement providing for cooperation in the areas of tourism management, SMME development, scholarships (in

Municipality and Amathole District Municipality IDP engagements. As part of Inter-governmental relations initiatives that seek to enhance the participation of sector departments in municipal Integrated Development Plans (IDP) and to strengthen integrated planning, a session was organized with National Departments and State owned Enterprises operating in the Eastern Cape Province to share insights on progress in service delivery. To ensure the support of Sector Departments to the IDP processes, an integrated Provincial IDP engagement was hosted by the Department of Local Government and Traditional Affairs (DLGTA) working in conjunction the Office of the Premier. These sessions discussed progress in the IDP review process for 2012/13. These engagements served as platform to usher the 2013/14 IDP review process and in this process emphasis was placed on the strategic role of the OTP in ensuring the participation of sector departments. To this end, the IGR Unit supported IDP processes hosted by the Nelson Mandela Bay Metropolitan Municipality, Cacadu District Municipality, Alfred Nzo District Municipality, Amathole District Municipality and the OR Tambo District Municipality. There was a noticeable improvement in the participation of sector departments in the IDP processes especially in the Nelson Mandela Bay Metropolitan Municipality as there was previously a challenge of poor participation by these institutions. In these interactions, sector departments presented their service delivery programmes for alignment and integration. To strengthen inter-sphere coordination, engagement was held on the 04 June 2013 with National Departments to monitor progress on service delivery progress and address challenges experienced. In this platform, service delivery implementation by National Departments and State owned Enterprises operating in the Eastern Cape Province was also discussed.

4) Provincial Disaster Project Steering Committee The IGR component supported the convening and hosting of meetings of the Provincial Disaster Project Steering Committee. The meetings assessed progress in the utilisation of disaster management funds by Government Departments and Municipalities. There was a concern that some departments diverted the funds earmarked for disaster management and relief assistance to programmes that were not foreseen



to monitor the implementation of the twinning arrangements signed by these municipalities.

Official Development Assistance: The OTP was represented at the Annual Consultations between the EU and South Africa which were co-hosted by the National Treasury and the EU Delegation to South Africa in Centurion on 16 May 2013. The discussions were aimed at influencing the size of European Union development cooperation allocation to South Africa in 2014. The EU was expected to allocate an amount of €900 million to finance development projects in South Africa during the period 2007-13. The Eastern Cape is eligible to access this funding to finance projects in the Province. Invitations by the National Treasury for interested parties to submit candidate projects for the €900 million EU allocation in the 2014 year were forwarded to Provincial Departments and Municipalities for action. The upshot of this was that a total amount of R40 million was allocated for the period 2014-17 to the Department of Economic Development, Environmental Affairs and Tourism and the Eastern Cape Development Corporation to finance projects on sustainable rural villages (Chris Hani District) and the ecological resources management systems for schools respectively.

Technical support was also provided to consultations between the EU and the Port St Johns Municipality which was aimed at assessing the potential of this Municipality to be eligible for EU funding.

International Relations and Cooperation Public Participation Programme: The OTP supported and coordinated preparations and hosting of the Public Participation Programme which was anchored by the Minister of International relations and Cooperation, Ms Maite Nkoana- Mashabane, in the Buffalo City on 29 November 2013. Events organised for the International Relations and Cooperation Public Participation Programme included interactions with employees and management of the Mathomo Project in Dimbaza, a community engagement session at Peelton Location and an Investor Dialogue hosted at East London Industrial Development Zone (IDZ).

confectionary/culinary/hospitality studies, fine art, sculpturing), jewelry, shipping industry, container ports. The Eastern Cape and Riau Island would also exchange technical visits annually to add momentum to their cooperation and explore opportunities to broaden their relations. It was further agreed that a Joint Technical Committee would be established to expedite work towards conclusion of a twinning arrangement between the Eastern Cape and Riau Islands.

South Korea: The Eastern Cape and Chungcheongnam-do Province in South Korea exchanged technical committees which investigated the feasibility to conclude a twinning arrangement between the two parties. The twinning arrangement will be aimed at promoting bilateral cooperation in the areas of university partnerships, techno park development, leadership development academy, agricultural research development and port management.

A draft text of the Statement of Intent for bilateral cooperation with the Province of Chungcheongam-do Province (South Korea) was forwarded to the latter for consideration and further processing. The signing of the Statement of Intent by both parties would reaffirm the commitment of the Eastern Cape and Chungcheongnam-do Province to conclude the twinning arrangement which would formalise and underpin bilateral cooperation between these parties.

International Relations Workshop: The Office of the Premier hosted a Provincial International Relations Workshop in conjunction with the Eastern Cape chapter of SALGA and the Department of International Relations and Cooperation (DIRCO) at the Regent Hotel, Buffalo City from 15-16 July. The Workshop was aimed at enhancing the capacity of Mayors, Speakers, Municipal Managers and international relations practitioners in the Province to operationalise the Provincial International Relations Strategy and pursue international opportunities with a view to advancing the Provincial priorities. Representatives of DIRCO presented papers on the subjects of international relations, economic diplomacy and protocol. Participating municipalities resolved to designate international relations units to strengthen their capacity






Actual Achievement

(2013/14)



4.5

Number of reports on participation of all Provincial Government departments in the development of Integrated Development Plans at local government level to improve integrated planning and effectiveness in implementation of government programmes

2 2 2 0 -

4.6

Number of EXCO Outreach Programme organised to strengthen public participation and public engagements with stakeholders on service delivery commitments and progress towards attaining coherence in service delivery.

88 [target was

revised from 8 to 4]

4 0 -

4.7

Number of International Initiatives co-ordinated in Provincial Government to mobilise and attract resources for the implementation of government priorities

2 2 2 0 -

4.8Number of engagement platforms facilitated for communities and stakeholders to participate in government programmes

4 2 5 +3Engagements were conducted in the context of EXCO Outreach therefore more platforms were created than previously planned.






Performance indicator

Changes to Targets

Reason for the AmendmentOriginal Target/indicator

Revised Target/indicator

8 4

Due to competing priorities the Executive Council postponed the outreach programmes that had been planned in the second half of the year. It is therefore recommended that the target be revised in line with the change of the priorities of the Executive Council.

departments. This ensures that constitutional obligations are met and that business is conducted within the confines of the law.

4) An electronic contract management system was developed for use by all Provincial departments. This will result in improved contract management whereby departments will derive value for money and improved contract performance.

5) Old order legislation was reviewed which resulted in the passing and enactment of the following legislation: General Law Amendment Act, 2013; the Amendment of the Eastern Cape General Law Amendment Bill 2013; and the General Law Amendment Bill, 2014. The Act and Bills repeal obsolete legislation and align Provincial legislation with the Constitution, thereby providing legal certainty. The Transkei Development and Reserve Fund Repeal Bill, 2013 was approved by Legislature and assented to by the Premier. Its effect is that the funds were released to the Provincial Revenue Fund.

6) A manual for the development, drafting, and submission of policy and legislation was approved by Provincial Management. The roll-out thereof to the various departments will aid in addressing the risk of obsolete or invalid legislation, and clarifies and aligns processes.

Sub-Programme 4.5: Legal Services (Office of the Chief State Law Advisor)

Performance Highlights 1) The Eastern Cape Provincial Legal Advisor’s Forum was established

during this financial year. The Forum will facilitate cooperation and coordination between legal departments of Provincial departments, public entities and Provincial Legislature, and is aimed at improving legal compliance and legal services in the Province of the Eastern Cape.

2) Invaluable Promotion of Administrative Justice Act (PAJA) and Promotion of Access to Information Act (PAIA) training was provided to public servants from various Provincial departments. Legal Services, together with the Department of Justice and GIZ, form part of a national steering committee on PAJA Mainstreaming in the Province, which seeks to coordinate Provincial PAJA & PAIA training. The aforementioned PAIA & PAJA activities serve to ensure compliance with Constitutional legislation and to enhance the efficiency of government.

3) Various contracts and agreements were drafted and vetted. In addition thereto, advice and assistance was rendered to various

Number of EXCO Outreach Programme organised to strengthen public participation and public engagements with stakeholders on service delivery commitments and progress towards attaining coherence in service delivery.

4.6



9) The White Paper on the Liquor Bill was presented at a workshop on the Liquor Bill, and inputs were made on the Bill. This will result in the review of the Bill to ensure the drafting of legislation that will better address the priorities of the Provincial Government.

10) The Litigation Management Task Team, which was established and functional in the Department of Health, yielded positive results through the empowerment of employees on the management of PAIA requests.

11) Human Resource Organisation Project Team litigation (transversal issue) stemming from various departments throughout the province was opposed. This resulted in the curtailment of departments’ salary bill, pending the finalisation of arbitration proceedings. OTP continues to render legal support to various departments despite the decentralisation of their Legal Services units.

7) The Department presented a three-day introductory legislative drafting course. This course was attended by 20 legal advisors from five provincial departments, five municipalities, and state attorneys’ offices, and sought to address skills shortages in the drafting of legislation. This will, in turn, help to facilitate compliance with constitutional and other legislative prescripts by enabling legal advisors to draft legislation that is in line with national legislation and with the constitution.

8) The Special Economic Zones Bill was presented at a stakeholder dialogue arranged by Department of Economic Development, Environmental Affairs and Tourism (DEDEAT). A working group has been established which is aimed at resolving problems with the Bill.





Actual Achievement

(2013/14)



4.9 Percentage of adverse court judgements against Provincial Government recorded

35% Less than 30%74% [80 out of

108]44% [78 out of

108]

The percentage of adverse court orders is a result of litigation which spans over a number of financial years, most of which were initiated during previous financial years, but finalised during the year in issue. The Department’s influence on the outcome of court orders (adverse) across the provincial departments is very limited. A new strategy – Litigation and Legal Support has been developed for implementation. It will focus on legal management of letters of demand received in identified departments.

4.10 Percentage of requests for legal advice and opinions provided

100% 100%100% [263 out

of 263 opinions provided]

0 -

4.11 Percentage of Bills developed 100% 100% 100% [5 out of 5 bills formulated] 0 -




2013/2014 2012/2013


ActualExpenditure


Final Appropriation

ActualExpenditure


R’000 R’000 R’000 R’000 R’000 R’000

Deputy Director General - Executive Support Services 3 474 2 981 493 2 257 2 218 39

Cabinet and Protocol Services 5 894 5 291 603 6 508 6 595 (87)

Provincial Communications 32 720 31 159 1 561 29 118 28 149 969

Inter-Governmental & Stakeholders Relations 9 696 9 162 534 14 873 13 960 913

Legal Services 11 672 11 598 74 14 988 14 547 441

TOTAL 63 456 60 191 3 265 67 744 65 469 2 275


Strategy to Overcome Areas of Under Performance1) A new strategy – Litigation and Legal Support has been developed for

implementation. It will focus on legal management of letters of demand received in identified departments.


B5 Transfer Payments

B5.1 Transfer payments to public entities

Name of Public Entity Services Rendered by the Public Entity Amount Transferred Amount Spent

Eastern Cape Socio Economic Consultative Council (ECSECC)

ECSECC is a schedule 3C public entity in terms of the Public Finance Management Act (Act No1 of 1999). Its core business is to assist government and other stakeholders to achieve integrated development for the Province

42 659 39 233

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Supported a Wild Coast Summit, and facilitated a number of Wild Coast Pre-Summit Engagements with stakeholders in Alfred Nzo, Amathole and in OR Tambo.

Developed a Wild Coast Special Economic Zone concept proposal submitted by DEDEAT to the Department of Trade and Industry) and which was approved for a feasibility study and business case.

Partnering with business chambers to bring current policy issues to the attention of local business leaders.

Undertook research and organized dialogues on models for agricultural development and economic development in the two Eastern Cape metros.

Conducted numerous policy analysis and capacity development workshops for COSATU and its affiliates.

Regular release of quarterly economic updates and other statistical publications (eg. census fact sheet per local municipality)

Supported DRDAR set up an integrated spatial information system.Continued to facilitate a range of public private partnerships for technical

Achievements of the Public EntityThe Eastern Cape Socio Economic Consultative Council has recorded a number of significant achievements in the financial year under review. The following are some of its performance highlights. Further details of these and others are contained in the entity’s 2013/14 Annual Report.Obtained a clean audit for 2012/13 financial year.Undertook a diagnostic report for the Eastern Cape Planning Commission,

and managed content and stakeholder engagement in the economic, education, spatial, and institutional working groups as part of the process of developing Vision 2030.

Undertook four studies to better plan for improved local beneficiation of the Presidential Infrastructure Co-ordinating Commission projects in the Eastern Cape. These studies included one on Umzimvubu Dam, a strategy and master-plan for Mthatha Airport, local supplier opportunities in energy value chains, and a review of ICT initiatives to provide provincial strategic ICT priorities.

Provided planning and institutional support to OR Tambo District Municipality and Nelson Mandela Bay Metropolitan Municipality



Ran a number of HIV prevention and human rights campaigns targeting vulnerable groups such as commercial sex workers, men having sex with men, and young women.

training with role-players such as AFROX, MERSETA, and Department of Education etc.

Provided regular reporting and monitoring of implementation of the Provincial Strategic Plan on HIV and AIDS.

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B5.2 Transfer payments to all Organisations other than Public Entities

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

Name of transferee Type of organisation Purpose for which the funds were used

Did the dept. comply with s 38 (1) (j) of the PFMA

Amount transferred

(R’000)

Amount spent by the entity

Reasons for the funds unspent by

the entity

National Student Finance Aid Scheme (NSFAS)

This is a public entity established by the Minister of Higher Education

To provide financial assistance to students from the Eastern Cape studying at institutions of higher education in the country

Yes 40 476 40 476 -

B6 Conditional Grants

The Department did not receive conditional grants in the year under review.



B7 Donor FundsB7.1 Donor Funds Received

Name of donor European Union (EU)

Full amount of the funding Euro 12 Million

Period of the commitment December 2007 to December 2012 (funding agreement extends to December 2014 )

Purpose of the funding The SURUDEC Programme purpose is to assist poor and marginalised rural communities in the Eastern Cape Province to develop and implement sustainable livelihoods projects with the overall objective to reduce poverty through the development and implementation of Integrated Community Development Plans (ICDP). The purpose of the SURUDEC Programme is to promote the achievement of sustainable livelihoods in at least 10 communities through appropriate technologies and innovative approaches to rural development.

Expected outputs

Call 1 Projects: Social capital developed, ICDP developed and submitted / lobbied with appropriate potential funders, ICDP incorporated into the (Municipal) Integrated Development Plans (IDP), the ICDP being implemented in 2013.

Call 2 Projects: Implementation of 10 pilot projects aimed at supporting rural community

development

.Actual outputs achieved Call 1 and Call 2 Projects still ongoing.

Amount received in current period (R’000) R0

Amount spent by the department (R’000) R142

Reasons for the funds unspent None. Payments made relate to funds received in the previous financial years.

Monitoring mechanism by the donor The donor appointed a SURUDEC Programme Manager, based in Pretoria, to oversee the implementation of the SURUDEC Programme. In addition regular site visits, mid-term reviews, and on the spot and final audits conducted by the donor.



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or additions and the asset register on a monthly basis. The asset register is maintained on Bar Coded Asset Auditing (BAUD) which is a system outside government’s transversal systems. There is inadequate capacity in asset management unit which requires management focus in the new year and this is due to new staff being appointed that must still be trained in the BAUD system and government requirements on asset management.

Changes in policy and accounting for assets introduced with the Modified Cash Standards have resulted in the department splitting its asset register into moveable and immovable asset registers. The immovable asset register contains assets that are ICT infrastructure such as networks, switches and routers. There has been limited guide in this area but government is progressing towards GRAP year by year.

B8 Capital Investment

B8.1 Capital Investment and MaintenanceThe department continued this financial year with the utilization of SITA to ensure the delivery of infrastructure related investments projects though the use of all the approved SITA Service level agreements. The approved SITA SLA refers mainly to: Local Area Network & Desktop Support ServicesInfrastructure Support ServicesBusiness Continuity ServicesApplication Support ServicesGovernment Common Core Network (Wide Area Network)Printing Services

The department further ensured the finalization of the procurement of the Disaster Recovery Infrastructure, Video Conferencing and Hosted PBX which will be implemented in the 2014/15 financial year. The department further ensured continuous update of the asset register.

B8.2 Asset Management The asset register of the department complies with the minimum requirements for an asset register. Two stock takes to verify assets of the Office of the Premier were conducted during the year under review. Discrepancies found during the stock take were corrected. During the stock count all the unusable assets were identified and were disposed in the current financial year.

A significant amount of assets were procured in the financial year of which a majority comprises of office furniture, replacement of laptops and desktops. Other capital payments related ICT infrastructure assets such as routers and switches procured. Reconciliations are performed on new purchases



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C1 Introduction 90C2 Risk Management 90C3 Fraud and Corruption 91C4 Minimising Conflict of Interest 91C5 Code of Conduct 92C6 Health Safety and Environmental Issues 92C7 Portfolio Committees 92C8 Scopa Resolutions 93C9 Prior Modifications to Audit Reports 93C10 Internal Control Unit 93C11 Internal Audit and Audit Committees 93

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of the risk profiles and ultimately the Risk Management Strategy. The close monitoring of the implementation of the Risk Management strategy- through the set governance structures- provides an opportunity for the identification of emerging risks. The Department has formally appointed a Risk Management Committee and the Committee has been consistent during the year in providing implementation support and oversight in the institutionalisation of the Risk Management Strategy. The Committee reviews progress of implementing risk action plans as determined in the risk profiles, on a quarterly basis. The Risk Management Committee reports to the Accounting Officer and the Audit Committee.

The implementation of the Risk Management Strategy is a standing agenda item for Executive Management, Top Management and the Audit Committee. The Audit Committee monitors the implementation of the Risk Management Strategy and the work of the Risk Management Committee. The Audit Committee further provides guidance advice to the Accounting Officer and the Committee with a view to continuously improve risk management in the Department.

The implementation of the Risk Management Strategy, including the close monitoring of its implementation, is starting to bear fruits for the department. Currently there is a lot of improvement indicated by increased implementation of risk action plans by management. The visibility of risk management in the department has improved, as evident in their contribution in management meetings, the risk management awareness workshops conducted, regular risk management awareness articles posted on the department’s media, etc., however, the relationship between Department’s performance and risk management performance has not been defined and assessed yet. This will be determined in the next financial year as the Risk Management gets more embedded in the operations of the department.

C1 Introduction

The Department’s commitment to maintain the highest standards of governance is fundamental to the management of public finances and resources. During the year under review the Department consolidated its governance systems and structures in its bid to enhance good governance. Through these systems and structures the Department envisages effective, efficient and economic utilisation of public resources. Accountability is also of paramount importance to the Department and the strengthened governance seeks to promote such.

C2 Risk Management

The Department’s main aim on risk management is to improve its risk management systems to an extent that Risk Management becomes an integral part of the daily operations of every employee in the Office of the Premier. To this effect the Office of the Premier has institutionalised the implementation of its own Risk Management Strategy, aligned and customised from the Provincial Risk Management Framework and the Public Sector Risk Management Framework. The strategy was developed to guide implementation and enhance the practice of Risk Management within the OTP. The main purpose is to embed a culture of Risk Management at all levels throughout the Department.

The Department conducts risk assessments annually. The Risk Profiles that emanate from the assessments assist management in identifying areas of priority and also for Internal Audit to derive the audit plans. Developments in the implementation of risk management plans continuously inform the review


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to any of the institutions identified under the Protected Disclosures Act 26 of 2000.

Employees are also referred to the Anti-Corruption Whistle Blowing Policy of the Province which was adopted for the Department. The Policy has more information on the protection offered to employees against unfair labour practices, unfair dismissals, victimization, etc., for blowing the whistle.

Fraud and Corruption cases are reported either through the National Anti-Corruption Hotline or walk-ins and tipoffs as detailed above. Cases are then investigated within the department but those which require Forensic capabilities are then outsourced to relevant institutions for further resolution. During the year under review there was no fraud and corruption cases relating to the OTP.

C4 Minimising Conflict of Interest

In addition to the annual financial disclosures by members of the Senior Management Services and SCM officials, the Department is implementing the Policy prohibiting employees from trading with Government and from doing remunerative work without prior approval by Executing Authorities. All SCM officials sign Code of conduct acknowledgement in addition to the annual disclosure of financial interests.

During the year under review, the Department took these measures further by conducting verification of all financial disclosures by SMS members through the relevant systems and structures. Possible areas of conflict of interest were raised with the affected officials for necessary action to be taken.

C3 Fraud and Corruption

The Department has a Fraud Prevention Plan, [the Plan], and its purpose is to outline the department’s approach to fraud risk management (prevention and detection of fraud and corruption). The Plan also sets the tone through which Top Management commits itself and the department towards rejecting fraud as a business norm. It recognises the fraud and corruption prevention measures which are largely already in place at the OTP.

In addition, the Plan identifies strategic and operational Fraud and Corruption risks that must be addressed and which could jeopardise the successful implementation of each component of the Plan. The OTP has ‘Zero Tolerance’ stance towards Fraud and Corruption.

For easy implementation and monitoring thereof, the Plan, includes a matrix of tasks and responsibilities highlighting various internal control measures for implementation by management throughout the year. Progress made was monitored by Risk Management on a quarterly basis and reported to management, the Risk Management Committee and the Audit Committee.

The Fraud Prevention Plan provides for the OTP personnel to report any incidences of possible fraud and/or corruption. Employees are therefore encouraged to report these incidences in any of the following ways:Internally: report or write to the Senior Manager of the directorate

or any of the Senior Managers in Risk Management, Anti-Corruption and Security Management, or Internal Audit;

Externally: report to the National Anti-Corruption Hotline, available all the time at 0800 701 701; or

Invoking the provisions Protected Disclosure Act: Report or write

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safety audit was conducted in 2013/14 to ensure compliance with the OHSA and an implementation plan which includes risks management plan is in place and implemented. The following task teams to drive safety issues have been appointed – first aiders, fire fighters safety representatives and peer educators. The SHERQ policy is being reviewed and is at final consultation stages. Safety equipment like fire extinguishers, stretchers, first aid kits and signage has been mounted in designated areas.

C7 Portfolio Committees

As part of its accounting to the oversight bodies, the Department attended 5 Portfolio Committee Meetings during the year under review. A summary of the issues raised by the Portfolio Committee is contained in the table below.

C5 Code of Conduct

Risk Management continuously engages officials on matters relating to ethics and promotion of the code of conduct. Where a breach has occurred an investigation is conducted and the matter is reported to Labour Relations in order for disciplinary measures to be taken. The Public Service Code of Conduct is a standing item in the induction programme of newly appointed officials.

C6 Health Safety and Environmental IssuesThe Department has a functional safety committee with full programme representation to ensure a safe working environment for its employees. A

NO DATE /2013 Purpose Key Issues Raised by the Committee

1. 16 & 23 April Tabling of the 2013/14 Budget and APP discussion of the 2013/14 Budget and 2013/14 APP

a) The impact of the organisational re-engineering in the OTP on the operations of the department and the need to speed up the person-to-post matching process.

2. 14 May Consideration of Discussion of the 2013/14 Budget and 2013/14 APP

a. The need to strengthen monitoring of service delivery programmes.

b. The need to make provision for the Sports Activities in the Eastern Cape Public Service

c. The need to speed up investigations into the fraud and corruption cases.

d. The need to speed up the appointment of the Risk Manager and provision of a report on the PILIR cases.

e. The monitoring of the NFSAS funds and report on the bursaries allocated through the OTP funding.

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NO DATE /2013 Purpose Key Issues Raised by the Committee

3. 04 June Consideration of the 2013/14 APP a. The need to consider the strategic value of international relations and the relevance of such partnerships to the Provincial International Relations Strategy. [Update on international relations programme in the Province].

b. Progress made on the eradication of mud structures in the province.

4. 22 October Tabling and discussion of the 2012/13 Annual Report a) The need to address the shortcomings found during the EXCO Outreach Programme.

b) The need to enhance accountability in respect of non-responsive and under-performing departments.

c) Update on the Presidential Hotline.d) Update on the status of ASIDI Programme in the province.

5. 15 November Tabling and discussion of 2013/14 Financial Oversight Report a) The need for the department to ensure 100% expenditure by year end.


C10 Internal Control UnitThe Department has an Internal Control Unit whose purpose is to monitor compliance with policies and regulatory frameworks. During the course of the financial year under review, the unit has mainly been involved in verifying adherence to approval delegations, availability of funds on expenditure request, detecting and preventing irregular, fruitless and wasteful expenditure in the system including validating payments prior to them being processed in the system. In the new financial year they will also focus on ensuring that relevant policies are in place and updated accordingly.

C11 Internal Audit and Audit Committees

The key objective of the internal auditing activity is to provide an independent, objective assurance and consulting services designed to add value and

For all the issues raised in the Portfolio Committee meetings the department developed action plans to monitor implementations of the recommendations made. The reports required were provided to the Portfolio Committee accordingly.

C8 SCOPA Resolutions

The department did not have SCOPA findings during the year under review.

C9 Prior Modifications to Audit ReportsThe Department got an unqualified audit with no with no findings for the 2012/13 financial year.

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improve the organisation’s operations. Key to the activities of the Internal Audit Unit is the implementation of the approved Annual Internal Audit Plan as well as the review of standard documentation such as the Internal Audit Methodology, Charter, Policies and Procedures.

During the year under review the Internal Audit Unit of the department examined and evaluated ongoing control, risk management, and governance processes and provided counsel and recommendations for improvement. To this end Internal Audit completed various audits such as a review of Leave Management, Supply Chain Management Processes, quarterly Audit of Performance Objectives, Review of the quarterly Interim and Annual Financial Statements, FMCMM and MPAT verification, Ethics Management, quarterly Dashboard Reporting, the reporting of the implementation of the Audit Improvement Plan.

Oversight on the Internal Audit work was conducted through the department’s Audit Committee. The key objective of the Audit Committee is to assist the Accounting Officer in fulfilling his oversight responsibility in terms of the applicable statutes. The Audit Committee operated in line with the Audit Committee Charter and executed its responsibilities relating to the financial statements, internal control, internal audit, risk management, external audit, compliance with laws and regulations, and performance management. Five Audit Committee meetings were held during the 2013/14 financial year.

The table reflects relevant information on the audit committee members, including their frequency in Audit Committee meetings:

N0 Name Qualifications Internal or

externalIf internal, position in the

department Date appointed Date Resigned

No. of Meetings

attended

1. Mr Vishnu Naicker [Chairperson] B. Compt External N/A 14/07/2011 N/A 4

2. Mr Kevin Pather Chartered Accountant External N/A 14/07/2011 N/A 5

3. Mr Phumzile Zitumane Master of Business Leadership External N/A 14/07/2011 N/A 5

4. Mrs Xoliswa Kese B Tech Cost and Management Accounting Internal

Financial Management Specialist at Department of

Education19/07/2012 N/A 2

5. Mrs Janine Baxter Chartered Accountant Internal CFO at the Eastern Cape Rural Development Agency 19/07/2012 N/A 3

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C12 Audit Committee Report

Report of the Audit Committee on the Financial Statements for the Year Ended 31 March 2014

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

Audit Committee and Attendance:

The Audit Committee consists of the external Members listed hereunder and is required to meet a minimum of at least two times per annum as per provisions of the Public Finance Management Act (PFMA). In terms of the approved Terms of Reference, five (5) meetings were held during the current year, i.e. four meetings for Quarterly Performance Reporting (financial and non-financial) and one special meeting.

Non-Executive Members:

Name of Member Number of Meetings Attended

Mr. Vishnu Naicker (Chairperson) 4Mr Kevin Pather 5Mr Phumzile Zitumane 5 Mrs Janine Baxter 3 Mrs Xoliswa Kese 2 The Members of the Audit Committee met with the Senior Management of the Department and Internal Audit, collectively to address risks and challenges facing the Departments. A number of in-committee meetings were held to address control weaknesses and conflicts with the Department.

Audit Committee Responsibility

The Audit Committee reports that it has complied with its responsibilities arising from Section 38(1) (a) of the Public Finance Management Act (PFMA), 1999 (Act No.1 of 1999) (as amended by Act No.29 of 1999) 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 attempted to discharge its responsibilities as contained therein.

The Effectiveness of Internal Control and ICT Governance

The Audit Committee has observed that the overall control environment of the Department has continued to improve during the year under review. Several deficiencies in the system of internal control and deviations were reported in the Internal Audit Reports.

In the conduct of its duties, the Committee has, inter alia, reviewed the following:• The effectiveness of the internal control systems;• The operational risk areas covered in the scope of internal and external audits;• The adequacy, reliability and accuracy of financial information provided to management and other users of such information;• Any accounting and auditing concerns identified as a result of internal and external audits;• Compliance with legal, accounting and regulatory frameworks;• The activities of the Internal Audit Function, including its annual work program, co-ordination with external auditors, the reports of significant investigations and the response of management to specific recommendations; • Where relevant, the independence and objectivity of external auditors.

The system of internal control applied by the Department over financial risk management is effective, efficient and transparent. In line with the PFMA and the King III Report on Corporate Governance requirements, Internal Audit provides the Committee and management with assurance that the internal controls are appropriate and effective.

This is achieved by means of the risk management process, as well as the identification of corrective actions and suggested enhancements to the

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Evaluation of Financial Statements

The Audit Committee has:• Reviewed and discussed the audited Annual Financial Statements to be included in the Annual Report, with the Auditor-General and the Accounting Officer;• Reviewed the Auditor-General’s Management Report and management’s response thereto; • Reviewed the Department’s compliance with legal and regulatory provisions; and • Reviewed significant adjustments resulting from the audit. • Reviewed the Departments Report on Performance Information.

The Committee has once again taken note of the concerns of the Auditor General and accepts that there is further room for improvement in the accounting function and elements of the internal control environment. As in previous years the Committee will ensure that the internal audit plan addresses these issues and will monitor the implementation of the recommendations of the Auditor General’s Report.

The Audit Committee has once again noted the constraints to achieve certain targets as identified by management. These constraints continue to adversely impact upon the Department achieving certain objectives.

The monitoring of the Department’s performance is a key function of management, executive management and the Executive Authority. The Committee has no direct line responsibility for the Department’s performance measurement. However, the Committee has ensured, principally through the internal audit function, that the systems of performance measurement and reporting, as well as the systems of internal control that underpin the performance management framework of the Department, remain robust and are addressed routinely in the audit plans. The Committee also obtained assurance from management and internal audit that the Department’s performance management system adequately and effectively report appropriate and relevant information

controls and processes, reports of the Internal Auditors, the Audit report on the Annual Financial Statements and the management report of the Auditor General.

The following areas will continue to be high on the monitoring and evaluation agenda for the forthcoming year in our continuous efforts to improving the internal control environment and ensuring sound financial management:• Financial Reporting Controls;• Financial and Budget Performance;• ICT Governance; and• Procurement and contract management,

The Audit Committee also reviewed progress with respect to the ICT Governance in line with the ICT Framework issued by the Department of Public Services and Administration. The Committee is satisfied with the significant progress on the ICT internal control environment. The Committee still report dissatisfaction with minimal progress made with the implementation of the Disaster Recovery Plan and the Business Continuity Plan. This continued to be a high risk for the Department.

Risk Management

The department has developed and approved a risk management strategy. This strategy is the foundation for a continuous risk assessment process and for managing monitoring of risks on an ongoing basis. The 2013/2014 financial year saw a significant improvement in the maturity of risk management within the department.

Internal Auditing

Internal auditing provides a supportive role to management and the Audit Committee to achieve their objectives by assisting in the management of risk within the department. The internal audit department is responsible for independent and objective evaluation of the department’s system of internal control at a detailed level and to bring any significant business risks and exposure to the attention of management and the committee through the provision of comprehensive internal audit reports. The Committee is comfortable with the efficiency and effectiveness of the Internal Audit function of the department.


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Conclusion

The Committee wishes to thank the Premier, the Director-General, Senior Management, Treasury, Internal Audit and the Secretariat for their inputs and commitment shown during the year. I would further like to thank all members of the Committee for their contribution and the professional way in which meetings were conducted.

MR VK NAICKERDATE: 20th August 2014Chairperson of the Audit Committee

PART D:

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D1 Introduction 100D2 Overview of Human Resources 100D3 Human Resource Oversight Statistics 101

Contents

118Office of the Premier 2013/14 Annual Report100Office of the Premier 2013/14 Annual Report

Job Evaluation: 100 jobs were evaluated during the year, translating into a total of 328 posts being evaluated. None of those were downgraded. All evaluated jobs guarantee equal pay for work of equal value. That is contributing positively to the retention of staff in general and the incumbents of those positions in particular.

HR as a strategic partner: Through the HR environmental scanning exercise, it was also observed that Human Resource Management function is not entrenched in the organisation and Line Function Managers are not performing their HRM responsibilities effectively. The introduction of strategic business partner model was recommended although not yet implemented at the end of the financial year. This will require a thorough resource analysis and mind- set change interventions. This approach has been adopted and will be implemented fully during the ensuing financial year (2014/2015).

HR and Change Management: Conceptualisation around the culture change programme was thoroughly conducted and has seen the roll- out of the programme through value creation and strategy development. Full roll- out will be observed as the programme is currently integrated to other initiatives, like the Office of the Premier Branding and strategic review.

Career Management: Lack of succession planning at critical positions was also identified as a challenge. Strategies proposed includes the Implementation of progressive development programmes for targeted critical posts.

Other challenges included the fact that training and development initiatives throughout the department were not targeted to critical skills, aligned neither to personal development plans and agreed career paths nor to the growth of the organisation. Alignment of Training and Development to personal development plans and career paths had to be dealt with, through integration of work place skills planning and Personal Development Planning. A training plan was adopted and implemented accordingly. Overall, 144 employees were trained

D1 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.

D2 Overview of Human Resources

Through the HR Strategic Planning Framework, the following issues were lifted and adopted as priorities for the year 2013/14:

HR Effectiveness Assessment for 2012/13 was conducted, to pave way for the implementation of HR Turnaround Strategies as well as submission to the relevant National Institutions (DPSA through IDOS). HR Plan was also reviewed and implemented accordingly. Both Half year and annual Implementation reports were submitted on 30 September 2013 and March 2014 respectively.

Organisational Development Landscape (2013/14): The Department has pushed for the finalisation of the person- to- post matching in line with the re-engineering of the OTP. However, this did not go on without challenges. At the beginning, this process resulted in unintended consequences such as uncertainty and excess officials. Measures were put in place to ensure that those challenges were dealt with, including Labour and Management Forum. The adopted Terms of Reference also emphasised issues of Change Management, Capacitation plan and prioritisation of internal staff, including contract workers in as far as the filling of vacancies and placement processes. The Department then embarked on massive person- to post matching, internal advertisements and internal transfers to fulfil these terms of reference. At the end of the financial year, 90% of officials were placed, against 10% that still remained unplaced.

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these processes.

Employee Engagement Programmes (Employee Wellness and Labour Relations Management): The Department managed to implement 80% of the wellness programmes in line with the Provincial Wellness Strategy. Employee Wellness policies were developed to ensure implementation of all 4 Pillars of Wellness Management and are now at consultation phase, to be followed by approval. A Wellness Business Plan was developed to complement all four operational plans as per the four wellness pillars.

during the 13/14 financial year over. 27 staff were awarded with bursaries during this period in line with HR planning requirements.

Annual Recruitment Plan (2013/14) aligned with the HR capacity needs of the department was developed and implemented. All posts were filled during this financial year, however, the main challenges that impacted negatively on this process revolved around Job Evaluation. Overall, 77 Appointments were made through other various recruitment processes. Prioritisation of financial resourcing to fill critical posts was conducted to ensure cost- effectiveness during

D3 Human Resource Oversight Statistics 3.1 Personnel related expenditure

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

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

Table 3.1.1 Personnel expenditure by programme for the period 1 April 2013 and 31 March 2014

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 126 643 76 175 389 468,48 0 60.1 179

Institutional development &organizational support 170 653 39 720 509 985,52 0 23.3 71

Policy & governance 81 247 20 571 499 200,00 0 25.3 38

Executive support services 60 191 35 993 240 412,02 0 59.8 82

TOTAL 440 750 172 459 1 639 066,02 0 39.1 370


Table 3.1.2 Personnel costs by salary band for the period 1 April 2013 to 31 March 2014

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) 0 0 0 0

Skilled (level 3-5) 7 343 4,3 42 175

Highly skilled production (levels 6-8) 32 049 18,58 113 284

Highly skilled supervision (levels 9-12) 68 264 39,59 130 525

Senior and Top management (levels 13-16) 43 506 25,23 50 870

Contract (Levels 3-5) 586 0,34 2 293

Contract (Levels 6-8) 2 101 1,22 6 350

Contract (Levels 9-12) 5 731 3,33 8 716

Contract (Levels 13-16) 12 103 7,02 13 931

Periodical Remuneration 296 0,18 3 99

Abnormal Appointment 480 0,28 3 160

TOTAL 172 459 100 370 466




Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the period 1 April 2013 to 31 March 2014

Programme

Salaries Overtime Home Owners Allowance Medical Aid

Amount (R’000Salaries 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 2013 56 858 56 858 132 0.2 1 822 15.1 2 808 3.7

Institutional building & transformation 2013

31 937 31 937 4 0 634 1.6 1 078 2.7

Policy and governance 2013

16 649 16 649 2 0 177 0.8 288 1.3

Executive support services 2013

30 187 30 187 95 0.2 638 1.6 1 034 2.5

TOTAL 135 631 135 631 233 0.1 3 271 1.8 5 208 2.9



Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the period 1 April 2013 to 31 March 2014

Salary Band

Salaries Overtime Home Owners Allowance Medical Aid

Amount (R’000Salaries as a

% of Personnel Costs

Amount (R’000)Overtime as a

% of Personnel costs

Amount (R’000) HOA as a % of Personnel costs Amount (R’000)

Medical Aid as a % of Personnel

costs

Skilled (level 1-2) 285 64.2 0 0 39 8.8 31 7

Skilled (level 3-5) 4 445 64.4 34 0.5 447 6.5 663 9.6

Highly skilled production (levels 6-8) 22 794 70.9 140 0.4 1 211 3.8 2 071 6.4

Highly skilled supervision (levels 9-12 51 700 72.4 58 0.1 767 1.1 1 678 2.3

Senior management (level 13-16) 37 057 80.2 0 0 620 1.3 538 1.2

Contract (Levels 3-5) 381 65 0 0 25 4.3 51 8.7

Contract (Levels 6-8) 1 625 77.3 2 0.1 40 1.9 99 4.7

Contract (Levels 9-12) 4 773 80.7 0 0 22 0.4 67 1.1

Contract (Levels 13-16) 12 092 89.6 0 0 100 0.7 8 0.1

Periodical Remuneration* 0 0 0 0 0 0 0 0

Abnormal Appointment** 480 100 0 0 0 0 0 0

TOTAL 135 632 75.3 234 0.1 3 271 1.8 5 206 2.9


* Periodial Remuneration - Short Term Contract** Abnormal Appointment - Out of Adjustments


Table 3.2.1 Employment and vacancies by programme as on 31 March 2014

Programme Number of posts on approved establishment Number of posts filled Vacancy Rate Number of employees

additional to the establishment

Administration 2013 219 183 5.2 19

Institutional building & transform 2013 107 72 11.1 6

Policy and governance 2013 72 36 12.2 1

Executive support services 2013 98 79 8.2 3

TOTAL 496 370 7.7 29

3.2 Employment and Vacancies

The tables in this section summarise the position with regard to employment and vacancies. The following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment.

This information is presented in terms of three key variables:

• Programme• Salary band• Critical occupations (see definition in notes below).

Departments have identified critical occupations that need to be monitored. In terms of current regulations, it is possible to create a post on the establishment that can be occupied by more than one employee. Therefore, the vacancy rate reflects the percentage of posts that are not filled.

It is worth noting that the Department has 496 positions in terms of the approved structure, and 126 new vacant posts but not all those positions will be filled due to availability of funds. The Department had a plan of filling the positions over the MTEF and prioritising the CORE programmes. Over the MTEF the vacancies will therefore reduce as a result of being filled.



Table 3.2.2 Employment and vacancies by salary band as on 31 March 2014

Salary band Number of posts on approved establishment

Number of posts filled Vacancy RateNumber of employees

additional to the establishment

Skilled (Levels 3-5), Permanent 71 42 29.8 2

Highly skilled production (Levels 6-8), Permanent 161 116 27.9 2

Highly skilled supervision (Levels 9-12), Permanent 185 133 28 7

Senior management (Levels 13-16), Permanent 79 50 36.7 1

Contract (Levels 3-5) 0 2 0 2




TOTAL 496 370 25.4 29



Table 3.2.3 Employment and vacancies by critical occupations as on 31 March 2014

Critical occupation Number of posts on approved establishment Number of posts filled Vacancy Rate

Number of employees additional to the establishment

Head of department/chief executive officer, Permanent 3 3 0 0Human resources & organisational development & relate prof, Permanent 50 47 6 10

Human resources related, Permanent 31 28 9.7 1

Legal related, Permanent 6 6 0 0

Other occupations, Permanent 4 4 0 1

Senior managers, Permanent 76 49 35.5 0

TOTAL 170 137 19.4 12

Notes

The CORE classification, as prescribed by the DPSA, is used for the completion of this table.Critical occupations are defined as occupations or sub-categories within an occupation – (a) in which there is a scarcity of qualified and experienced persons currently or anticipated in the future, either because such skilled persons are not available or they are available but do not meet the applicable employment criteria;

(b) for which persons require advanced knowledge in a specified subject area or science or learning field and such knowledge is acquired by a prolonged course or study and/or specialised instruction;(c) where the inherent nature of the occupation requires consistent exercise of discretion and is predominantly intellectual in nature; (e) and in respect of which a department experiences a high degree of difficulty to recruit or retain the services of employees.



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 2014

SMS Level Total number of SMS posts

Total number of SMS posts filled

% of SMS posts filled Total number of SMS posts vacant

% of SMS posts vacant

Premier 1 1 100 0 0

Director-General/ Head of Department 1 1 100 0 0

Salary Level 15 5 5 100 0 0

Salary Level 14 16 11 68.8 5 31

Salary Level 13 53 33 62.3 20 37.7

TOTAL 76 51 67.1 25 32.9

Table 3.3.2 SMS post information as on 30 September 2013


Total number of SMS posts filled % of SMS posts filled Total number of SMS

posts vacant % of SMS posts vacant




Salary Level 14 16 10 62.5 6 37.5

Salary Level 13 53 40 75.5 13 24.5

TOTAL 76 57 75 19 25



Table 3.3.3 Advertising and filling of SMS posts for the period 1 April 2013 to 31 March 2014


Total number of SMS posts filled % of SMS posts filled Total number of SMS

posts vacant % of SMS posts vacant




Salary Level 14 16 11 68.7 5 31.2

Salary Level 13 53 39 73.6 14 26.4

TOTAL 76 57 75 19 25

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 preiod 1 April 2013 to 31 March 2014

Reasons for vacancies not advertised within six months

Delays in finalisation of Job evaluation.

Reasons for vacancies not filled within six months

No suitable candidate found and posts have to be re-advertised.



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 2013 to 31 March 2014

Reasons for vacancies not advertised within six months

Not applicable

Reasons for vacancies not filled within six months

Not applicable



Table 3.4.1 Job Evaluation by Salary band for the period 1 April 2013 to 31 March 2014

Salary band Number of posts on approved

establishment

Number of Jobs Evaluated

% of posts evaluated by salary bands

Posts Upgraded Posts downgraded

Number % of posts evaluated Number

% of posts evaluated

Lower Skilled (Levels1-2) 33 33 100 0 0 0 0

Skilled (Levels 3-5) 38 38 100 0 0 0 0

Highly skilled production (Levels 6-8) 162 157 97 0 0 0 0

Highly skilled supervision (Levels 9-12) 183 97 53 0 0 0 0

Senior Management Service Band A 56 8 14 0 0 0 0

Senior Management Service Band B 16 4 25 0 0 0 0

Senior Management Service Band C 6 6 100 0 0 0 0

Senior Management Service Band D 2 0 0 0 0 0 0

TOTAL 496 343 69.12 0 0 0 0

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 3.4.2 Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2013 to 31 March 2014

Gender African Asian Coloured White Total

Female 2 0 0 0 2

Male 2 0 0 0 2

TOTAL 4 0 0 0 4

Employees with a disability None

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

Table 3.4.3 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2013 to 31 March 2014

Occupation Number of employees Job evaluation level Remuneration level Reason for deviation

None 0 0 0 None

Total number of employees whose salaries exceeded the level determined by job evaluation 0

Percentage of total employed 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.


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

Table 3.4.4 Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2013 to 31 March 2014

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

Gender African Asian Coloured White Total

Female 0 0 0 0 0

Male 0 0 0 0 0

TOTAL 0 0 0 0 0

Employees with a disability None



Table 3.5.1 Annual turnover rates by salary band for the period 1 April 2013 to 31 March 2014

Salary bandNumber of employees at

beginning of period-1 April 2013

Appointments and transfers into the department

Terminations and transfers out of the department

Turnover rate

Lower skilled (Levels 1-2), Permanent 6 0 0 0

Skilled (Levels 3-5), Permanent 45 0 3 6.7

Highly skilled production (Levels 6-8), Permanent 123 1 7 5.7

Highly skilled supervision (Levels 9-12), Permanent 121 11 15 12.4

Senior Management Service Band A, Permanent 27 5 1 3.7

Senior Management Service Band B, Permanent 11 1 2 18.2

Senior Management Service Band C, Permanent 5 0 0 0

Senior Management Service Band D, Permanent 1 0 0 0



Contract (Levels 9-12) 15 0 2 13.3

Contract (Band A) 8 0 0 0

Contract (Band B) 1 0 1 100

Contract (Band C) 5 1 2 40

Contract (Band D) 1 0 0 0

TOTAL 383 19 33 8.6

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 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2013 to 31 March 2014

Critical occupationNumber of employees at beginning of period-April

2013

Appointments and transfers into the

department

Terminations and transfers out of the

department Turnover rate

Communication and information related, Permanent 4 0 0 0

Engineering sciences related, Permanent 1 0 0 0

Farm hands and labourers, Permanent 1 0 0 0

Finance and economics related, Permanent 11 1 0 0

Financial and related professionals, Permanent 9 1 0 0

Head of department/chief executive officer, Permanent 2 0 0 0Human resources & organisational development & relate prof, Permanent 56 3 11 19.6

Information technology related, Permanent 0 1 0 0Language practitioners interpreters & other communication, Permanent 5 1 1 20

Legal related, Permanent 5 2 1 20

Senior managers, Permanent 29 4 4 13.8

TOTAL 122 13 17 13.93



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 2013 to 31 March 2014

Termination Type Number % of Total Resignations

Death 2 6.1

Resignation 14 42.4

Expiry of contract 3 9.1

Dismissal – operational changes 0 0

Dismissal – misconduct 0 0

Dismissal – inefficiency 0 0

Discharged due to ill-health 0 0

Retirement 14 42.4

Transfer to other Public Service Departments 0 0

Other 0 0

TOTAL 33 100Total number of employees who left as a % of total employment

Resignations as % of Employment = 3.8 %

Notes

The CORE classification, as prescribed by the DPSA, is used for the completion of this table.Critical occupations are defined as occupations or sub-categories within an occupation – (a) in which there is a scarcity of qualified and experienced persons currently or anticipated in the future, either because such skilled persons are not available or they are available but do not meet the applicable employment criteria;

(b) for which persons require advanced knowledge in a specified subject area or science or learning field and such knowledge is acquired by a prolonged course or study and/or specialised instruction;(c) where the inherent nature of the occupation requires consistent exercise of discretion and is predominantly intellectual in nature; (e) and in respect of which a department experiences a high degree of difficulty to recruit or retain the services of employees.



Table 3.5.4 Promotions by critical occupation for the period 1 April 2013 to 31 March 2014

Occupation Employees 1 April 2013 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

Communication and information related 4 0 0 1 25

Engineering sciences related 1 0 0 0 0

Finance and economics related 11 0 0 8 72.7

Financial and related professionals 9 4 44.4 8 88.9

Head of department/chief executive officer 2 0 0 1 50

Human resources & organisational development & relate prof

56 6 10.7 42 75

Information technology related 0 1 0 1 0

Language practitioners interpreters & other commun 5 0 0 5 100

Legal related 5 1 20 3 60

Language practitioners interpreters & other communication

5 0 0 5 100

Senior managers 29 4 10.3 35 120.7

TOTAL 127 16 12.6 109 85.8




Table 3.5.5 Promotions by salary band for the period 1 April 2013 to 31 March 2014

Salary Band Employees 1 April 2013 Promotions to another salary level

Salary bands promotions as a % of employees by salary

level

Progressions to another notch within a

salary level

Notch progression as a % of

employees by salary bands

Lower skilled (Levels 1-2), Permanent 6 0 0 1 16,7

Skilled (Levels 3-5), Permanent 45 0 0 35 77,8

Highly skilled production (Levels 6-8), Permanent 123 7 5,7 95 77,2

Highly skilled supervision (Levels 9-12), Permanent 121 21 17,4 78 64,5

Senior management (Levels 13-16), Permanent 44 8 18,2 48 109,1

Contract (Levels 3-5) 6 0 0 2 33,3

Contract (Levels 6-8) 8 2 25 2 25

Contract (Levels 9-12) 15 3 20 8 53,3

Contract (Levels 13-16) 15 0 0 12 80

TOTAL 383 41 10,7 281 73,4



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 2014

Occupational categoryMale Female

TotalAfrican Coloured Indian White African Coloured Indian White

Legislators, senior officials and managers, Permanent

11 3 1 1 16 1 0 1 34

Professionals, Permanent 58 4 0 2 54 1 0 3 122

Technicians and associate professionals, Permanent

43 1 0 0 69 4 1 5 123

Clerks, Permanent 10 0 0 0 36 3 0 2 51

Service and sales workers, Permanent

0 0 0 0 1 0 0 0 1

Plant and machine operators and assemblers, Permanent

1 0 0 0 0 0 0 0 1

Elementary occupations, Permanent

11 0 0 0 27 0 0 0 38

TOTAL 134 8 1 3 203 9 1 11 370



Table 3.6.2 Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2014

Occupational bandMale Female


Top Management 1 0 0 1 3 0 0 0 5

Senior Management 16 4 1 2 17 3 0 2 45

Professionally qualified and experienced specialists and mid-management

67 2 0 0 54 2 1 7 133

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

28 0 0 0 82 4 0 2 116

Semi-skilled and discretionary decision making 14 0 0 0 28 0 0 0 42

Contract (Top Management) 2 0 0 0 3 0 0 0 5

Contract (Senior Management) 3 2 0 0 3 0 0 0 8

Contract (Professionally qualified) 2 0 0 0 6 0 0 0 8

Contract (Skilled technical) 1 0 0 0 5 0 0 0 6

Contract (Semi-skilled) 0 0 0 0 2 0 0 0 2

TOTAL 134 8 1 3 203 9 1 11 370



Table 3.6.3 Recruitment for the period 1 April 2013 to 31 March 2014



Senior Management, Permanent 2 0 0 0 3 0 0 1 6

Professionally qualified and experienced specialists and mid-management, Permanent

5 1 0 0 5 0 0 0 11

Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent

1 0 0 0 0 0 0 0 1


TOTAL 8 1 0 0 9 0 0 1 19

Table 3.6.4 Promotions for the period 1 April 2013 to 31 March 2014



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



53 1 0 0 38 2 1 4 99


24 0 0 0 73 3 0 2 102




Semi-skilled and discretionary decision making, Permanent 11 0 0 0 24 0 0 0 35

Unskilled and defined decision making, Permanent 1 0 0 0 0 0 0 0 1




Contract (Skilled technical) 0 0 0 0 4 0 0 0 4

Contract (Semi-skilled) 0 0 0 0 2 0 0 0 2

TOTAL 116 9 2 4 173 9 1 8 322



Table 3.6.5 Terminations for the period 1 April 2013 to 31 March 2014





13 0 0 0 2 0 0 0 15


2 0 0 0 5 0 0 0 7

Semi-skilled and discretionary decision making, Permanent 0 0 0 0 3 0 0 0 3




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

TOTAL 18 1 0 0 15 0 0 0 34



Table 3.6.6 Disciplinary action for the period 1 April 2013 to 31 March 2014

Disciplinary actionMale Female


TOTAL 3 0 0 0 3 0 0 1 7

Table 3.6.7 Skills development for the period 1 April 2013 to 31 March 2014

Occupational categoryMale Female


Legislators, senior officials and managers 18 0 1 3 23 5 0 2 52

Professionals 4 1 0 0 4 1 0 0 10

Technicians and associate professionals 0 0 0 0 0 0 0 0 0

Clerks 7 0 0 0 72 0 0 3 82

Service and sales workers 0 0 0 0 0 0 0 0 0

Skilled agriculture and fishery workers 0 0 0 0 0 0 0 0 0

Craft and related trades workers 0 0 0 0 0 0 0 0 0

Plant and machine operators and assemblers

0 0 0 0 0 0 0 0 0

Elementary occupations 0 0 0 0 0 0 0 0 0

TOTAL 29 0 1 3 99 6 0 5 144

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



SMS LevelTotal number of funded SMS

postsTotal number of SMS

membersTotal number of signed

performance agreements

Signed performance agreements as % of total number of SMS members

Director-General/ Head of Department 1 1 1 100%

Salary Level 16 _ _ _ _

Salary Level 15 7 7 6 86%

Salary Level 14 11 11 11 100%

Salary Level 13 42 42 42 100%

TOTAL 61 61 60 98%

Table 3.7.2 Reasons for not having concluded Performance agreements for all SMS members as on 31 March 2013

Reasons

One (1) DDG was seconded between January 2013 to September 2013 to the Department of Health

Table 3.7.3 Disciplinary steps taken against SMS members for not having concluded Performance agreements as on 31 March 2014

Reasons

Not applicable


3.7 Signing of Performance Agreements by SMS Members

Table 3.7.1 Signing of Performance Agreements by SMS members as on 31 May 2013


Table 3.8.1 Performance Rewards by race, gender and disability for the period 1 April 2013 to 31 March 2014

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 72 201 35.8 980 13 605

African, Male 36 133 27.1 545 15 145

Asian, Female 1 1 100 37 36 581

Asian, Male 1 1 100 44 44 482

Coloured, Female 5 9 55.6 88 17 640

Coloured, Male 2 8 25 64 32 067

White, Female 4 11 36.4 88 22 096

White, Male 1 3 33.3 43 43 177

Employees with a disability 1 3 33.3 18 18 430

TOTAL 123 370 33.2 1 908 15 514


3.8 Performance Rewards


Table 3.8.2 Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2013 to 31 March 2014

Salary band

Beneficiary Profile Cost

Number of beneficiaries Number of employees % of total within salary bands Total Cost (R’000) Average cost per

employee

Skilled (Levels 3-5) 37 43 69 179 6 172

Highly skilled production (Levels 6-8) 106 121 39.7 506 11 000

Highly skilled supervision (Levels 9-12) 94 138 30.8 983 23 976



Contract (Levels 9-12) 2 8 25 35 17 500

Periodical Remuneration* 0 0 0 0 0

Abnormal Appointment** 0 0 0 0 0

TOTAL 239 310 34.7 1 703 14 432

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.


* Periodial Remuneration - Short Term Contract** Abnormal Appointment - Out of Adjustments


Table 3.8.3 Performance Rewards by critical occupation for the period 1 April 2013 to 31 March 2014

Critical occupationBeneficiary Profile Cost

Number of beneficiaries Number of employees % of total within occupation Total Cost (R’000) Average cost per

employee

Communication and information related 1 4 25 17 17 000

Engineering sciences related 0 1 0 0 0

Finance and economics related 0 12 0 0 0

Financial and related professionals 9 11 81.8 121 13 444

Head of department/chief executive officer 0 3 0 0 0

Human resources & organizational development & relate prof 14 47 29.8 290 20 714

Information technology related 1 4 25 11 11 000

Language practitioners interpreters & other communication 3 5 60 42 14 000

Legal related 3 6 50 106 35 333

Senior managers 3 31 11 13 41 000

TOTAL 34 124 27.4 600 15 528


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

Critical occupations are defined as occupations or sub-categories within an occupation – (a) in which there is a scarcity of qualified and experienced persons

currently or anticipated in the future, either because such skilled persons are not available or they are available but do not meet the

applicable employment criteria;(b) for which persons require advanced knowledge in a specified subject

area or science or learning field and such knowledge is acquired by a prolonged course or study and/or specialised instruction;(c) where the inherent nature of the occupation requires

consistent exercise of discretion and is predominantly intellectual in nature; and

(d) in respect of which a department experiences a high degree of difficulty to recruit or retain the services of employees;

Notes


Table 3.8.4 Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2013 to 31 March 2014

Salary band

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

expenditureNumber of beneficiaries

Number of employees

% of total within salary bands

Total Cost (R’000) Average cost per employee

Band A 3 39 7.7 123 41 000 31 467

Band B 2 14 14.3 81 40 500 14 584

Band C 0 8 0 0 0 0

Band D 0 2 0 0 0 0

TOTAL 5 63 7.9 204 40 800 46 051

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 2013 to 31 March 2014

Salary band01 April 2013 31 March 2014 Change

Number % of total Number % of total Number % Change

Highly skilled supervision (Levels 9-12) 0 0 1 33.3 1 100

Senior management (Levels 13-16) 1 50 2 66.7 1 100

Contract (Levels 13-16) 1 50 0 0 -1 -100

TOTAL 2 100 3 100 1 100



Table 3.9.2 Foreign workers by major occupation for the period 1 April 2013 to 31 March 2014

Major occupation01 April 2013 31 March 2014 Change

Number % of total Number % of total Number % Change

Professionals and managers 2 100 3 100 1 50

TOTAL 2 100 3 100 1 50

Table 3.10.1 Sick leave for the period 1 January 2013 to 31 December 2013

Salary band Total days % Days with Medical certification

Number of Employees using

sick leave

% of total employees using

sick leaveAverage days per

employeeEstimated Cost

(R’000)

Skilled (Levels 3-5) 481 90.2 40 12.4 12 176

Highly skilled production (Levels 6-8) 1 057 78.8 111 34.4 10 740

Highly skilled supervision (Levels 9-12) 1 237 84.8 123 38.1 10 1 992

Senior management (Levels 13-16) 239 89.5 29 9 8 781

Contract (Levels 3-5) 12 100 1 0.3 12 5

Contract (Levels 6-8) 46 93.5 5 1.5 9 32

Contract (Levels 9-12) 87 89.7 9 2.8 10 156

Contract (Levels 13-16) 26 96.2 5 1.5 5 83

TOTAL 3 185 84.4 323 100 10 3 965


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 3.10.2 Disability leave (temporary and permanent) for the period 1 January 2013 to 31 December 2013

Salary band Total days % Days with Medical certification

Number of Employees using disability leave

% of total employees using disability leave

Average days per employee

Estimated Cost (R’000)

Skilled (Levels 3-5) 186 100 2 40 93 60

Highly skilled supervision (Levels 9-12) 120 100 2 40 60 153

Senior management (Levels 13-16) 23 100 1 20 23 84

TOTAL 329 100 5 100 66 297

Table 3.10.3 Annual Leave for the period 1 January 2013 to 31 December 2013

Salary band Total days taken Number of Employees using annual leave Average per employee

Skilled (Levels 3-5) 1 158 46 25

Highly skilled production (Levels 6-8) 2 856 122 23

Highly skilled supervision (Levels 9-12) 3 221 155 21

Senior management (Levels 13-16) 974 54 18

Contract (Levels 3-5) 17 1 17




TOTAL 8 749 409 21


Leave management is not getting any better due to employees not timeously submitting their leave applications and lack of monitoring by line managers.

However management has undertaken to monthly monitor leave by flagging the issues of abuse through reporting to line managers.


Table 3.10.4 Capped leave for the period 1 January 2013 to 31 December 2013

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 December

2013

Skilled (Levels 3-5) 5 2 3 106


Highly skilled supervision(Levels 9-12) 6 2 3 135

TOTAL 17 6 3 122

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 2013 to 31 March 2014

Reason Total amount (R’000) Number of employees Average per employee (R’000)

Leave pay-out for 2013/2014 due to non-utilisation of leave for the previous cycle 43 1 43 000

Capped leave payouts on termination of service for 2013/2014 4 477 37 121 000

Current leave pay-out on termination of service for 2013/2014 339 14 24 214

TOTAL 4 859 52 93 442


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.


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

Field workers have been identified to be at high risk as these employees work outside the office interacting with various stakeholders Distribution of condoms HIV, Counselling and Testing

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 Maceba – Senior Manager: Strategic Human Resource Support

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 3 Practitioners and R350 000.00

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 Financial, psychological, social, spiritual, physical, and

intellectual wellness.

4. Has the department established (a) committee(s) as contemplated in Part VI E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent.

XWellness Committee : Nonkululeko Makhendlana, Madikane Amanda, Mbukeli Gongxeka, Vuyisa Xuma, Tafadzwa Mwangolela, Clifford Peters, Felicia Jogie, & Zolani Balintulo

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 Yes The Department is in the process of reviewing its policies to ensure alignment with employment equity. The policies will thus support non-discrimination of people living with HIV/AIDS

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 The implementation of the Provincial HIV/AIDS policy. Counselling and Confidentiality.

7. Does the department encourage its employees to undergo Voluntary Counselling and Testing? If so, list the results that you have you achieved. X 3 Setions on HIV/AIDS counselling and testing were

organised



Question Yes No

Details, if yes

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

Systems monitoring tool provided by DPSA, taking into consideration all four pillars – SHERQ, HIV/TB, Wellness Management, Health and Productivity

3.12 Labour Relations

Table 3.12.1 Collective agreements for the period 1 April 2013 to 31 March 2014

Subject matter Date

Agreement on the increase of levies : PSCBC 2 September 2013

Total number of Collective agreements 0


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 2013 to 31 March 2014

Outcomes of disciplinary hearings Number % of total

Correctional counselling 1 14.3%

Verbal warning 1 14.3%

Written warning 0 0

Final written warning 1 14.3%

Suspended without pay 0 0

Fine 0 0

Demotion 0 0

Dismissal 1 14.3%

Not guilty 0 0

Case withdrawn 0 0

TOTAL 4 57.2%

Total number of Disciplinary hearings finalised 4




Table 3.12.3 Types of misconduct addressed at disciplinary hearings for the period 1 April 2013 to 31 March 2014

Type of misconduct Number % of total

Unauthorised absence from duty 2 28.6%

Alleged attempted theft 1 14.3%

Fraudulent alteration of vehicle trip authority and misuse of official vehicle 1 14.3%

TOTAL 4 57.2%

Table 3.12.4 Grievances logged for the period 1 April 2013 to 31 March 2014

Grievances Number % of Total

Number of grievances resolved 0 0

Number of grievances not resolved 0 0

Total number of grievances lodged 0 0

Table 3.12.5 Disputes logged with Councils for the period 1 April 2013 to 31 March 2014

Disputes Number % of Total

Number of disputes upheld 0 0

Number of disputes dismissed 1 100%

Total number of disputes lodged 1 100%



Table 3.12.6 Strike actions for the period 1 April 2013 to 31 March 2014

Strike Action % of Total

Total number of persons working days lost Nil

Total costs working days lost Nil

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

Table 3.12.7 Precautionary suspensions for the period 1 April 2013 to 31 March 2014

Precautionary Suspension % of Total

Number of people suspended Nil

Number of people whose suspension exceeded 30 days Nil

Average number of days suspended Nil

Cost of suspension(R’000) Nil



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 2013 to 31 March 2014

Occupational category GenderNumber of

employees as at 1 April 2013

Training needs identified at start of the reporting period

Learnerships Skills Programmes & other short courses

Other forms of training Total

Legislators, senior officials and managers Female 12 N/A • Exec Development Programmes• Competency Assessments• Government Planning• M&E• Leadership• Fin Management• Performance Management• Organizational Change Management

N/A 29








Professionals Female 5 • Co-operative Governance• Legislative Drafting&Interpretation of processes• Change management• Risk Management• Performance Audit• Professional Report writing, fraud detection, prevention• Vware, VCP,CISSP certified information systems• Security SAN storage area network• Advanced SABINET• Strategic Development & Marketing Programs

18

Male 3 • Security SAN storage, area network• Advanced SABINET• Strategic Development &Marketing Programs

Technicians and associate professionals Female 7 • Executive Development Programme• ICT Governance• ITIL Course• Audio production and editing• Project Management• Monitoring and Evaluation• MAC OSX Operating System

8








Clerks Female 46 • Supply chain public sector• HR Planning• Policy Development analysis & interpretation• Project Management• Leadership Development• Financial Management• Performance Management• SCOA for practitioners• AFS• Budget Formulation, Examination & Analysis Professional report writing• Supply chain public sector• HR Planning• Policy Development, analysis & interpretation Project Management• Leadership Development• Financial Management• Performance Management• SCOA for Practitioners• AFS• Budget Formulation, Examination & Analysis • Professional Report Writing• Excel Spreadsheet• Records Management Development Communication• Events Coordination• Strategic Planning Analytical Skills• PERSAL Dispute Resolutions• Facilities management Introduction to Giamas

Interships 12 98

Plant and machine operators and assemblers Male 3 • Customer Focus• Time Management

3

Elementary occupations Female 9 • Customer Care• Life Skills

10

TOTAL 166


141

Table 3.13.2 Training provided for the period 1 April 2013 to 31 March 2014

Occupational category GenderTraining provided within the reporting period



Legislators, senior officials and managers Female N/A 13 8 21Male 16 0 16

Professionals Female 36 13 49Male 9 0 9

Technicians and associate professionals Female 0 0 0Male 0 0 0

Clerks Female 34 12 46Male 0 0 0

Service and sales workers Female 2 1 3Male 0 0 0

Skilled agriculture and fishery workers Female 0 0 0Male 0 0 0

Craft and related trades workers Female 0 0 0Male 0 0 0

Plant and machine operators and assemblers Female 0 0 0Male 0 0 0

Elementary occupationsFemale 0 0 0Male 0 0 0

Sub TotalFemale 0 0 0Male 0 0 0

TOTAL 110 34 144


142

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 2013 to 31 March 2014

Nature of injury on duty Number % of total

Required basic medical attention only 3 0.7%

Temporary Total Disablement 0 0

Permanent Disablement 0 0

Fatal 0 0

TOTAL 3 0.7%

3.15 Utilisation of Consultants

The following tables relates to 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.


143

Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2013 to 31 March 2014

Project title Total number of consultants that worked on project

Duration(work days)

Contract value inRand

Investigation of cases 3 3 months R495 988.00

ICT audit 3 3months R248 740.00

Internal audit services 1 3 months R205 200.00

Internal audit methodology 2 72 hours R74 913.99

Provide assistance in management of surudec programme 1 3 months R621 792.55

Asset verification project 5 3 months R484 283.40

Rapid synthesis and implementation review 3 1 month R472 074.00

Implementation of sharepoint 4 3 months R995 391.00

Departments are no longer expected to obtain HDI status from service providers. The Department is therefore not able to report on the other tables under this section.


144

3.16 Severance Packages

Table 3.16.1 Granting of employee initiated severance packages for the period 1 April 2013 to 31 March 2014

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 supervision (Levels 9-12) 0 0 0 0

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

TOTAL 0 0 0 0


FINANCIAL INFORMATION

PART E:

PAR

T E:

FINA

NC

IAL IN

FOR

MATIO

N

PART E: FINANCIAL INFORMATION 150

E1 Auditor General’s Report 150E2 Annual Financial Statements 153

Contents

150

PART E: FINANCIAL INFORMATION

E1 Auditor General’s Report


notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

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

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

Opinion

6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Eastern Cape Office of the Premier as at 31 March 2014 and its financial performance and cash flows for the year then ended, in accordance with the Modified Cash Standard prescribed by the National Treasury and the requirements of the PFMA.

Emphasis of matter

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

REPORT OF THE AUDITOR-GENERAL TO THE EASTERN CAPE PROVINCIAL LEGISLATURE ON VOTE NO. 1: OFFICE OF THE PREMIER

REPORT ON THE FINANCIAL STATEMENTS

Introduction

1. I have audited the financial statements of the Eastern Cape Office of the Premier set out on pages 153 to 190, which comprise the appropriation statement, the statement of financial position as at 31 March 2014, the statement of financial performance 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 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 for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-general’s responsibility

3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the general

EASTERN CAPE – OFFICE OF THE PREMIER | VOTE 1AUDITOR GENERAL’S REPORT | for the year ended 31 March 2014


12. 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.

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

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

Additional matters

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

Achievement of planned targets

16. Refer to the annual performance report on pages 35 to 82 for information on the achievement of planned targets for the year.

Unaudited supplementary information

17. The supplementary information set out on pages 29 to 35 and 83 to 86 does not form part of the annual performance report and is presented as additional information. I have not audited this information and, accordingly, I do not report thereon.

Material underspending of the capital budget

8. As disclosed in note 4.2 to the appropriation statement, the department has materially underspent the budget relating to capital assets amounting to R13 million due to Information Communication Technology (ICT) procurement which was planned procurement through a third party, but had to be facilitated by the department through internal bid processes. This resulted in an underachievement of targets in programme.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

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

Predetermined objectives

10. 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 2014:

• Programme 2: Institutional building and transformation (on pages 53 to 65)

• Programme 4: Executive support (on pages 73 to 82)

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

151



• The systems and processes that government departments have put in place to report on their performance

• The performance reporting guidance and oversight of government departments.

East London

30 July 2014


Compliance with legislation

18. I performed procedures to obtain evidence that the department had complied with applicable legislation regarding financial matters, financial management and other related matters.

19. I did not identify any instances of material non-compliance with specific matters in key legislation, as set out in the general notice issued in terms of the PAA.

Internal control

20. I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with legislation.

21. I did not identify any significant deficiencies in internal control.

OTHER REPORT

Performance audit

22. The performance audit on the readiness of government to report on its performance is expected to be tabled in September 2014. The department was one of the 61 institutions and departments audited. The performance audit focused on the following:

152



153


Appropriation per programme

2013/14 2012/13

APPROPRIATION STATEMENT

Adjusted Appropriation

Shifting of Funds

VirementFinal

AppropriationActual

Expenditure Variance

Expenditure as % of

final appropriation

Final Appropriation

Actual Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

1. Administration Current payment 109 374 - (3 516) 105 858 105 841 17 100.0% 92 277 90 611Transfers and subsidies 5 523 - 3 777 9 300 9 298 2 100.0% 3 179 2 834Payment for capital assets 12 308 - - 12 308 11 504 804 93.5% 4 683 4 601Payment for financial assets - - - - - - - 732 726

2. Institutional Building and Transformation

Current payment 132 292 - (7 576) 124 716 125 315 (599) 100.5% 150 179 149 147Transfers and subsidies 20 476 - 20 000 40 476 40 476 - 100.0% 11 11Payment for capital assets 18 196 - - 18 196 4 862 13 334 26.7% 6 432 6 394Payment for financial assets - - - - - - 59 58

3. Policy and Governance Current payment 47 044 - (7 170) 39 874 38 588 1 286 96.8% 29 166 28 273 Transfers and subsidies 42 659 - - 42 659 42 659 - 100.0% 44 561 44 561 Payment for financial assets - - - - - - - 15 15

4. Executive Support Services

Current payment 68 971 - (5 515) 63 456 60 191 3 265 94.9% 67 410 65 136Transfers and subsidies - - - - - - - 190 189Payment for financial assets - - - - - - - 144 144

Subtotal 456 843 - - 456 843 438 734 18 109 96.0% 399 038 392 700 Statutory AppropriationCurrent payment 2 016 - - 2 016 2 016 - 100.0% 1 916 1 916

TOTAL 458 859 - - 458 859 440 750 18 109 96.1% 400 954 394 616

EASTERN CAPE – OFFICE OF THE PREMIER | VOTE 1APPROPRIATION STATEMENT | for the year ended 31 March 2014

E2 Annual Financial Statements



2013/14 2012/13

Final Appropriation

Actual Expenditure

Final Appropriation

Actual Expenditure

TOTAL (brought forward) 458 859 440 750 400 954 394 616Reconciliation with statement of financial performance

ADD

Departmental receipts 2 315 298

Aid assistance 12 314

Actual amounts per statement of financial performance (total revenue) 461 186 401 566

ADDAid assistance 142 1 315

Actual amounts per statement of financial performance (total expenditure) 440 892 395 931


155

Appropriation per economic classification

2013/14 2012/13


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

Current paymentsCompensation of employees 175 047 - (2 185) 172 862 170 443 2 419 98.6% 163 821 158 708Goods and services 182 634 - (21 592) 161 042 159 492 1 550 99.0% 175 187 174 435Interest and rent on land - - - - - - - 24 24

Transfers and subsidies Provinces and municipalities - 2 - 2 1 1 50.0% 2 2Departmental agencies and accounts 42 659 - - 42 659 42659 - 100.0% 41 966 41 966

Higher education institutions 20 476 - 20 000 40 476 40 476 - 100.0% - -Households 5 523 (2) 3 777 9 298 9 297 1 100.0% 5 973 5 627

Payments for capital assetsMachinery and equipment 29 348 - - 29 348 16 340 13 008 55.7% 9 919 9 892Intangible assets 1 156 - - 1 156 26 1 130 2.2% 1 196 1 103

Payments for financial assets - - - - - - - 950 943

TOTAL 456 843 - - 456 843 438 734 18 109 96.0% 399 038 392 700




156

Statutory Appropriation

2013/14 2012/13

Direct changes against the Provincial Revenue Fund



Final Appropriation

Actual Expenditure

VarianceExpenditure as % of final

appropriation

Final Appropriation

Actual expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

Premier 2 016 - - 2 016 2 016 - 100.0% 1 916 1 916

TOTAL 2 016 - - 2 016 2 016 - 100.0% 1 916 1 916

Statutory Appropriation per economic classification

2013/14 2012/13

Per Economic classification 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

Current paymentsCompensation of employees 2 016 - - 2 016 2 016 - 100.0% 1 916 1 916

TOTAL 2 016 - - 2 016 2 016 - 100.0% 1 916 1 916




157

2013/14 2012/13

Programme 1Administration


Shifting of Funds Virement Final

AppropriationActual

Expenditure VarianceExpenditure as % of final

appropriation

Final Appropriation

Actual expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

1.1 Deputy Director General - Administration

Current payment 3 729 304 883 4 916 4 915 1 100.0% 2 595 2 509Transfers and subsidies - - - - - - - 25 25

1.2 Premier’s core StaffCurrent payment 13 503 16 (3 777) 9 742 9 735 7 99.9% 10 934 10 470Transfers and subsidies - 1 027 3 777 4 804 4 803 1 100.0% - -Payment for financial assets - - - - - - - 324 322

1.3 Director General’s OfficeCurrent payment 18 120 (385) (1 980) 15 755 15 752 3 100.0% 14 604 13 948Payment for financial assets - - - - - - - 13 12

1.4 Strategic & Operational Support

Current payment 21 156 (852) 385 20 689 20 688 1 100.0% 15 228 14 781Transfers and subsidies - - - - - - - 285 284Payment for financial assets - - - - - - - 2 1

1.5 Internal Human ResourceCurrent payment 21 703 (524) 850 22 029 22 025 4 100.0% 21 371 21 371Transfers and subsidies 5 523 (1 029) - 4 494 4 494 - 100.0% 2 366 2 022Payment for capital assets - - - - - - - 22 21

1.6 Financial & Supply Chain Management

Current payment 31 163 1 441 123 32 727 32 726 1 100.0% 27 545 27 532Transfers and subsidies - 2 - 2 1 1 50.0% 503 503Payment for capital assets 12 308 - - 12 308 11 504 804 93.5% 4 683 4 601Payment for financial assets - - - - - - - 371 370

TOTAL 127 205 - 261 127 466 126 643 823 99.4% 100 871 98 772




158

2013/14 2012/13

Economic classification Adjusted Appropriation

Shifting of Funds


Actual Expenditure


appropriation

Final Appropriation

Actual expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

Current paymentsCompensation of employees 71 790 - 2 375 74 165 74 159 6 100.0% 66 355 64 869Goods and services 37 584 - (5 891) 31 693 31 682 11 100.0% 25 922 25 742

Transfers and subsidies to:Provinces and municipalities - 2 - 2 1 1 50.0% 2 2Households 5 523 (2) 3 777 9 298 9 297 1 100.0% 3 177 2 832

Payment for capital assetsMachinery and equipment 12 308 - - 12 308 11 504 804 93.5% 3 513 3 503Intangible assets - - - - - - - 1 170 1 098


TOTAL 127 205 - 261 127 466 126 643 823 99.4% 100 871 98 772




159

2013/14 2012/13

Programme 2Institutional Building and

Transformation Adjusted

AppropriationShifting of

FundsVirement Final

AppropriationActual

ExpenditureVariance


appropriation

Final Appropriation

Actual expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

2.1 Deputy Director General – Institutional Buildingand Transformation Current payment 8 697 - (123) 8 574 8 555 19 99.8% 9 183 8 521

2.2 TODCOSCurrent payment 48 152 - (13 478) 34 674 34 672 2 100.0% 40 292 40 242Transfers and subsidies 20 476 - 20 000 40 476 40 476 - 100.0% 11 11Payment for financial assets - - - - - - - 25 24

2.3 ICT ManagementCurrent payment 75 443 - 6 025 81 468 82 088 (620) 100.8% 100 704 100 384Payment for capital assets 18 196 - - 18 196 4 862 13 334 26.7% 6 432 6 394

Payment for financial assets - - - - - - - 34 34

TOTAL 170 964 - 12 424 183 388 170 653 12 735 93.1% 156 681 155 610




160

2013/14 2012/13


Shifting of Funds


Actual Expenditure


appropriationFinal

AppropriationActual

expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

Current paymentsCompensation of employees 41 094 - (1 357) 39 737 39 720 17 100.0% 39 567 38 591Goods and services 91 198 - (6 219) 84 979 85 595 (616) 100.7% 110 612 110 556Interest and rent on land

Transfers and subsidies to:Higher education institutions 20 476 - 20 000 40 476 40 476 - 100.0% - -Households - - - - - - - 11 11

Payment for capital assetsMachinery and equipment 17 040 - - 17 040 4 836 12 204 28.4% 6 406 6 389Intangible assets 1 156 - - 1 156 26 1 130 2.2% 26 5


TOTAL 170 964 - 12 424 183 388 170 653 12 735 93.1% 156 681 155 610




161

2013/14 2012/13

Programme 3Policy and Governance



Final Appropriation



appropriation

Final Appropriation

Actual expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

3.1 Deputy Director General Policy & Governance

Current payment 2 785 (200) - 2 585 2 116 469 81.9% 2 173 2 135

3.2 Performance Monitoring & Evaluation

Current payment 10 710 200 (4 000) 6 910 6 732 178 97.4% 4 925 4 244Payment for financial assets - - - - - - - 15 15

3.3 Service Delivery Intervention &

Coordination SupportCurrent payment 13 981 (1 350) (3 170) 9 461 8 890 571 94.0% 638 580

3.4 Policy Planning & Research Coordination

Current payment 19 568 1 350 - 20 918 20 850 68 99.7% 21 430 21 314Transfers and subsidies 42 659 - - 42 659 42 659 - 100.0% 44 561 44 561

TOTAL 89 703 - (7 170) 82 533 81 247 1 286 98.4% 73 742 72 849




162

2013/14 2012/13

Economic classificationAdjusted

AppropriationShifting of

Funds VirementFinal

AppropriationActual

Expenditure VarianceExpenditure as % of final

appropriation

Final Appropriation

Actual expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

Current paymentsCompensation of employees 21 041 - - 21 041 20 571 470 97.8% 15 905 15 307Goods and services 26 003 - (7 170) 18 833 18 017 816 95.7% 13 261 12 966

Transfers and subsidies to:Departmental agencies and accounts 42 659 - - 42 659 42 659 - 100.0% 41 966 41 966

Households - - - - - - - 2 595 2 595


TOTAL 89 703 - (7 170) 82 533 81 247 1 286 98.4% 73 742 72 849




163


2013/14 2012/13

Programme 4Executive Support

Services



Final Appropriation



appropriation

Final Appropriation

Actual expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

4.1 Deputy Director General – Executive Support

Current payment 4 142 350 (1 018) 3 474 2 981 493 85.8% 2 257 2 218

4.2 Cabinet and Protocol Services

Current payment 5 894 - - 5 894 5 291 603 89.8% 6 359 6 446Transfers and subsidies - - - - - - - 149 149

4.3 Provincial Communication

Current payment 35 382 (350) (2 312) 32 720 31 159 1 561 95.2% 29 108 28 139Transfers and subsidies - - - - - - - 8 8Payment for financial assets

- - - - - - - 2 2

4.4 Inter-Governmental & Stakeholders Relations

Current payment 10 781 - (1 085) 9 696 9 162 534 94.5% 14 840 13 928Transfers and subsidies - - - - - - - 33 32

4.5 Legal ServicesCurrent payment 12 772 - (1 100) 11 672 11 598 74 99.4% 14 846 14 405Payment for capital assets

- - - - - - - 142 142

TOTAL 68 971 - (5 515) 63 456 60 191 3 265 94.9% 67 744 65 469



164


2013/14 2012/13


Shifting of Funds




appropriation

Final Appropriation

Actual expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

Current paymentsCompensation of employees 41 122 - (3 203) 37 919 35 993 1 926 94.9% 41 994 39 941Goods and services 27 849 - (2 312) 25 537 24 198 1 339 94.8% 25 392 25 171Interest and rent on land - - - - - - - 24 24

Transfers and subsidies to:Households - - - - - - - 190 189

Payments for financial assets

- - - - - - - 144 144

TOTAL 68 971 - (5 515) 63 456 60 191 3 265 94.9% 67 744 65 469



165

EASTERN CAPE – OFFICE OF THE PREMIER | VOTE 1NOTES TO THE APPROPRIATION STATEMENT | for the year ended 31 March 2014


1. Detail of transfers and subsidies as per Appropriation Act (after Virement): Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-D) to the Annual Financial Statements.

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

3. Detail on payments for financial asset: 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):

Per programme Final

AppropriationActual

ExpenditureVariance

R’000Variance as a % of

Final AppropriationAdministration 129 482 128 659 823 0.6%Institutional Building & Transformation 183 388 170 653 12 735 6.9%Policy & Governance 82 533 81 247 1 286 1.6%Executive Support Services 63 456 60 191 3 265 5.1%

4.2

4.2 Per economic classification Final Appropriation Actual Expenditure Variance Variance as a % of Final Appropriation

R’000 R’000 R’000 R’000Current paymentsCompensation of employees 174 878 172 459 2 419 1.4%Goods and services 161 042 159 492 1 550 1.0%

Transfers and subsidiesProvinces and municipalities 2 1 1 50.0%Departmental agencies and accounts 42 659 42 659 - 0.0%Higher education institutions 40 476 40 476 - 0.0%Households 9 298 9 297 1 0.0%

Payments for capital assetsMachinery and equipment 29 348 16 340 13 008 44.3%Software and other intangible assets

1 156 26 1 130 97.8%



The under expenditure relates mainly to capital expenditure due to ICT procurement processes which were planned for procurement through SITA but had to be facilitated by the department through internal bid processes. This resulted in the late award of bids for the projects which include Disaster Recovery phase 1 implementation, Virtual Private

• Network software and Video Conference installation. This unforeseen delay resulted in the under achievement as reported in Programme 2.3 - Information Communication Technology Management.Compensation of employees under expenditure was caused by the recruitment process which was delayed by job evaluation processes.

•


EASTERN CAPE – OFFICE OF THE PREMIER | VOTE 1NOTES TO THE APPROPRIATION STATEMENT | for the year ended 31 March 2014

167

EASTERN CAPE – OFFICE OF THE PREMIER | VOTE 1STATEMENT OF FINANCIAL PERFORMANCE as at 31 March 2014

EASTERN CAPE – OFFICE OF THE PREMIER | VOTE 1STATEMENT OF FINANCIAL POSITION as at 31 March 2014

Note 2013/14 2012/13R’000 R’000

REVENUE

Annual appropriation 1 456 843 399 038Statutory appropriation 2 2 016 1 916Departmental revenue 3 2 315 298Aid assistance 4 12 314

TOTAL REVENUE 461 186 401 566

EXPENDITURECurrent expenditureCompensation of employees 5 172 459 160 713Goods and services 6 159 492 174 346Interest and rent on land 7 - 24Aid assistance 4 142 1 315Total current expenditure 332 093 336 398

Transfers and subsidies 92 433 47 595Transfers and subsidies 9 92 433 47 595Total transfers and subsidies 92 433 47 595

Expenditure for capital assets 16 366 10 995Tangible assets 10 16 340 9 892Intangible assets 10 26 1 103Total expenditure for capital assets 16 366 10 995

Payments for financial assets 8 - 943

TOTAL EXPENDITURE 440 892 395 931

SURPLUS FOR THE YEAR 20 294 5 635

Reconciliation of Net Surplus/(Deficit) for the year

Voted funds 18 109 6 338Annual appropriation 18 109 6 338Departmental revenue and NRF Receipts 14 2 315 298Aid assistance 4 (130) (1 001)SURPLUS FOR THE YEAR 20 294 5 635


Note 2013/14 2012/13R’000 R’000

ASSETS

Current assets 3 719 6 643Cash and cash equivalents 11 2 566 3 294Receivables 12 1 153 3 349 TOTAL ASSETS 3 719 6 643

LIABILITIES

Current liabilities 3 719 6 643Voted funds to be surrendered to the Revenue Fund 13 1 186 2 597Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund

14 31 87

Payables 15 998 2 325Aid assistance unutilised 4 1 504 1 634 TOTAL LIABILITIES 3 719 6 643

NET ASSETS - -


168

Note 2013/14 2013/14R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIESReceipts 444 190 398 052Annual appropriated funds received 1.1 439 920 395 297Statutory appropriated funds received 2 2 016 1 916Departmental revenue received 3 2 242 525Aid assistance received 4 12 314

Net increase in working capital 869 (267)Surrendered to Revenue Fund (5 208) (3 722)Current payments (332 093) (336 422)Interest paid - 24Payments for financial assets - (943)Transfers and subsidies paid (92 433) (47 595)Net cash flow available from operating activities 16 15 325 9 127

CASH FLOWS FROM INVESTING ACTIVITIESPayments for capital assets 10 (16 366) (10 995)Proceeds from sale of capital assets 3.2 313 -Net cash flows from investing activities (16 053) (10 995)

Net decrease in cash and cash equivalents (728) (1 868)

Cash and cash equivalents at beginning of period 3 294 5 162

Cash and cash equivalents at end of period 17 2 566 3 294


EASTERN CAPE – OFFICE OF THE PREMIER | VOTE 1STATEMENT OF CASH FLOW as at 31 March 2014

EASTERN CAPE – OFFICE OF THE PREMIER | VOTE 1ACCOUNTING POLICIES for the year ended 31 March 2014

Summary of significant accounting policies

The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated.

The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation.

Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the financial statements and to comply with the statutory requirements of the Public Finance Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act.

1 Basis of preparation

The financial statements have been prepared in accordance with the Modified Cash Standard.

2 Going concern

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

3 Presentation currency

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

4 Rounding

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

5 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.


6 Revenue

6.1 Appropriated funds

Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation).

Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the statement of financial performance on the date the adjustments become effective.

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

6.2 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 Expenditure

7.1 Compensation of employees

7.1.1 Salaries and wages

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

7.1.2 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.

169

EASTERN CAPE – OFFICE OF THE PREMIER | VOTE 1ACCOUNTING POLICIES | for the year ended 31 March 2014


7.2 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.

7.3 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.

7.4 Leases

7.4.1 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.

8 Aid Assistance

8.1 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.



8.2 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.

9 Cash and cash equivalents

Cash and cash equivalents are stated at cost in the statement of financial position.

Bank overdrafts are shown separately on the face of the statement of financial position.

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

10 Prepayments and advances

Prepayments and advances are recognised in the statement of financial position when the department receives or disburses the cash.

Prepayments and advances are initially and subsequently measured at cost.

Prepayments are expensed if they will have a negative impact on the Appropriation Statement and actual cash flows of the department.

11 Receivables

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

12 Payables

Payables are recognised in the statement of financial position at cost.

13 Capital Assets

13.1 Immovable capital assets

Immovable capital assets are initially recorded in the notes to the financial statements at cost. Immovable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition.

Where the cost of immovable capital assets cannot be determined accurately, the immovable capital assets are measured at R1 unless the fair value of the asset has been reliably estimated, in which case the fair value is used.

All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) are recorded at R1.

Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.

Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the immovable asset is recorded by another department in which case the completed project costs are transferred to that department.

13.2 Movable capital assets

Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition.

Where the cost of movable capital assets cannot be determined accurately, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R1.


Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.

Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the movable asset is recorded by another department/entity in which case the completed project costs are transferred to that department.




13.3 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.

14. Provisions and Contingents

14.1 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.

14.2 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.

14.3 Contingent assets

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

14.4 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.

15 Irregular expenditure

Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the irregularity unless it is impracticable to determine, in which case reasons therefor are provided in the note.

Irregular expenditure is removed from the note when it is either condoned by the relevant authority or transferred to receivables for recovery.

Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.




16 Changes in accounting policies

ICT infrastructure assets to the value of R59 786 000 were previously classified as movable tangible assets are now disclosed as Immovable tangible assets. This adjustment has been applied retrospectively.

Payments made to RULIV amounting to R8 683 000 (2012: R9 794 000) were classified as related parties in prior years. Only transactions with entities falling under the Premier’s portfolio are required to be disclosed per the Modified Cash Standards, thus the related party disclosure has been adjusted retrospectively.

17 Prior period errors

A contingent asset was previously recognised amounting to R1 400 000. This is not an asset to the Office of the Premier, as the department is recovering this amount on behalf of the European Union.

A retrospective adjustment to contingent liabilities amounting to R1 000 000 was affected, being the estimated amount to recover the funds.

Provision for doubtful debts was disclosed as a provision in 2012/13 (R100 000). It has been disclosed as an impairment in Note 27 in the 2013/14 financial year, retrospectively.

18 Non-adjusting events after the reporting date

• Orders decommitted after year end - R254 000.

• Assets disposed subsequent to year end - R282 000.

• A significant contract was entered into after year end relating to telephone services - R2 227 000.• Subsequent to year end the following functions were transferred to Office of the Premier:• The Department of Social Development and Special

• Programmes transferred the Special Programmes function; and

• Provincial Planning and Treasury transferred the Planning

function. Refer to note 28.

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 Key management personnel

Compensation paid to key management personnel including their family members where relevant, is included in the disclosure notes.

21 Employee benefits

Short-term employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements. These amounts are not recognised in the statement of financial performance or the statement of financial position.

22 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.

23 Related party transactions

Specific information with regards to related party transactions is included in the disclosure notes.



173

EASTERN CAPE – OFFICE OF THE PREMIER | VOTE 1NOTES TO THE FINANCIAL STATEMENTS | for the year ended 31 March 2014

1. Annual Appropriation

1.1 Annual Appropriation

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

2013/14 2012/13

Final Appropriation

Actual Funds

Received

Funds not requested/

not received

Appropriationreceived

R’000 R’000 R’000 R’000 Administration 127 466 124 788 2 678 99 475 Institutional Building and Transformation 183 388 172 633 10 755 155 811 Policy and Governance 82 533 81 163 1 370 73 314 Executive Support Services 63 456 61 336 2 120 66 697 Total 456 843 439 920 16 923 395 297

Funds were not required due to invoices not received for work done by year end which resulted in accruals reported. In addition, although funds were committed, services were not rendered by year end.



2. Statutory Appropriation

2013/14 2012/13R’000 R’000

Premier 2 016 1 916

Total 2 016 1 916

Actual Statutory Appropriation received 2 016 1 916

3. Departmental revenue

Note 2013/14 2012/13 R’000 R’000

Sales of goods and services other than capital assets 3.1 171 127 Sales of capital assets 3.2 313 - Transactions in financial assets and liabilities 3.3 2 071 398 Total revenue collected 2 555 525 Less: Own revenue included in appropriation 16 240 227 Departmental revenue collected 2 315 298

3.1 Sales of goods and services other than capital assets

Note 2013/14 2012/133 R’000 R’000

Other sales 171 127

Total 171 127


3.2 Sale of capital assets

Note 2013/14 2012/133 R’000 R’000

Tangible assets Machinery and equipment 29 313 -

Total 313 -

3.3 Transactions in financial assets and liabilities

Note 2013/14 2012/133 R’000 R’000

Other Receipts including Recoverable Revenue 2 071 398

Total 2 071 398

4. Aid assistance

4.1 Aid assistance received in cash from RDP

Note 2013/14 2012/13R’000 R’000

Foreign Opening Balance 1 634 2 635 Revenue 12 314 Expenditure (142) (1 315)

Current (142) (1 315) Surrendered to the RDP Closing Balance 1 504 1 634




4.2 Total assistance2013/14 2012/13

R’000 R’000 Opening Balance 1 634 2 635 Revenue 12 314 Expenditure (142) (1 315)

Current (142) (1 315) Closing Balance

1 504 1 634

4.3 Analysis of balance2013/14 2012/13

Note R’000 R’000 Aid assistance unutilised

RDP 1 504 1 634

Closing balance 1 504 1 634

5. Compensation of employees

5.1 Salaries and Wages

Note 2013/14 2012/13R’000 R’000

Basic salary 116 569 107 036 Performance award 1 954 1 695 Service Based 198 163 Compensative/circumstantial 2 168 3 004 Other non-pensionable allowances 29 955 29 304 Total 150 844 141 202

The item “Learnerships” has been removed from “Other operating expenditure” under “Goods and Services” and moved to “Salaries and Wages” under “Compensation of Employees” during the SCOA reimplementation of 2013/14.



5.2 Social contributions

Note 2013/14 2012/13R’000 R’000

Employer contributions Pension 16 405 14 318 Medical 5 187 5 186 Bargaining council 23 7 Total 21 615 19 511

Total compensation of employees 172 459 160 713 Average number of employees 383 403


6. Goods and services

Note 2013/14 2012/13R’000 R’000

Administrative fees 478 12 Advertising 13 667 8 644 Minor assets 6.1 1 353 501 Bursaries (employees) 148 47 Catering 3 276 4 942 Communication 7 315 8 109 Computer services 6.2 75 616 90 227 Consultants, contractors and agency/outsourced services 6.3 34 764 38 926 Audit cost – external 6.4 3 941 3 312 Fleet services 739 715 Consumables 6.5 3 586 3 979 Property payments 6.6 155 83 Transport provided as part of the departmental activities 190 295 Travel and subsistence 6.7 10 183 10 365 Venues and facilities 1 631 2 531 Training and development 1 658 1 103 Other operating expenditure 6.8 792 555 Total 159 492 174 346


The SCOA reimplementation of 2013/14 classified the department as a non-inventory department and therefore the prior year inventory is reclassified as consumables. The item ”Gifts” has been removed from “Other operating expenditure” and moved to “Consumables” during the SCOA reimplementation of 2013/14.Actual expenditure includes fees in respect of media campaigns for profiling of the Eastern Cape Government in advance of the actual events taking place which amount to R2 913 384.

6.1 Minor Assets

Note 2013/14 2012/136 R’000 R’000

Tangible assets Machinery and equipment 1 353 501

Total 1 353 501

6.2 Computer services

Note 2013/14 2012/136 R’000 R’000

SITA computer services 72 491 80 109 External computer service providers 3 125 10 118

Total 75 616 90 227

6.3 Consultants, contractors and agency/outsourced services

Note 2013/14 2012/136 R’000 R’000

Business and advisory services 25 254 26 033 Legal costs 1 614 2 427 Contractors 1 078 1 753 Agency and support/outsourced services 6 818 8 713

Total 34 764 38 926




6.6 Property paymentsNote 2013/14 2012/13

6 R’000 R’000 Municipal services 83 54 Property maintenance and repairs 23 - Other 49 29 Total 155 83

6.7 Travel and subsistenceNote 2013/14 2012/13

6 R’000 R’000 Employee Costs 9 876 9 996 Domestic travel costs 9 869 9 191 International travel costs 7 661 Per Diem allowance - 144 Non-employee costs 307 369 Domestic travel costs 307 343 International travel costs - 26

Total 10 183 10 365

6.8 Other operating expenditureNote 2013/14 2012/13

6 R’000 R’000 Professional bodies, membership and subscription fees 2 15

Resettlement costs 28 193 Other 762 347 Total 792 555

The item “Gifts” has been removed from “Other operating expenditure” and moved to “Consumables” during the SCOA reimplementation of 2013/14. The item “Learnerships” has been removed from “Other operating expenditure” under “Goods and Services” and moved to “Salaries and Wages” under “Compensation of Employees” during the SCOA reimplementation of 2013/14.


6.4 Audit cost – External

Note 2013/14 2012/136 R’000 R’000

Regularity audits 3 941 3 312 Total 3 941 3 312

6.5 Consumables

Note 2013/14 2012/136 R’000 R’000

Consumable supplies 1 155 594 Uniform and clothing 239 4 Household supplies 109 70 IT consumables 199 44 Other consumables 608 476

Stationery, printing and office supplies 2 431 3 385 Total 3 586 3 979

The SCOA reimplementation of 2013/14 classified the department as a non-inventory department and therefore the prior year inventory is reclassified as consumables.


7. Interest and rent on land Note 2013/14 2012/13

R’000 R’000 Interest paid - 24

Total - 24

8. Payments for financial assetsNote 2013/14 2012/13

R’000 R’000 Debts written off 8.1 - 943 Total - 943

8.1 Debts written off

Note 2013/14 2012/138 R’000 R’000

Other debt written off - 943

Total debt written off - 943

9. Transfers and subsidies2013/14 2012/13

R’000 R’000Note

Provinces and municipalities Annex 1A 1 1 Departmental agencies and accounts Annex 1B 42 659 41 966 University and Technikons Annex 1C 40 476 - Households Annex 1D 9 297 5 628 Total 92 433 47 595



R42 659 000 was transferred to ECSECC in the 2013/14 financial year. At the 31

March 2014 R3 425 572 was unspent.

10. Expenditure for capital assets

Note 2013/14 2012/13R’000 R’000

Tangible assets 16 340 9 892 Machinery and equipment 29 11 679 9 892 Other fixed structures 31 4 661 -

Intangible assets 26 1 103 Software 30 26 5 Patents, licences, copyright, brand names, trademarks

30 - 1 098

Total 16 366 10 995

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

Voted funds

Aid assistance

Total

R’000

R’000

R’000

Tangible assets 16 340 16 340 Machinery and equipment 11 679 - 11 679 Other fixed structures 4 661 - 4 661

Intangible assets 26 26 Software 26 - 26

Total 16 366 - 16 366




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

Voted funds Aid assistance

Total

R’000 R’000 R’000 Tangible assets 9 892 - 9 892

Machinery and equipment 9 892 - 9 892

Intangible assets 1 103 - 1 103 Software 5 - 5 Patents, licences, copyright, brand names, trademarks 1 098 - 1 098

Total 10 995 - 10 995

10.3 Finance lease expenditure included in Expenditure

for capital assets

Note 2013/14R’000

Tangible assets7 426 Machinery and equipment

Total 7 426

Actual expenditure includes fees for the lease of printers paid in advance of the service being rendered which amounts to R786 600.

11. Cash and cash equivalents

Note 2013/14 2012/13R’000 R’000

Consolidated Paymaster General Account 362 1 660 Investments (Domestic) 2 204 1 634

Total 2 566 3 294

12. Receivables

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

Less than one

year

One to three years

Older than

three years

Total Total

Claims recoverable

12.1Annex 3 61 817 - 878 3 007

Staff debt 12.2 88 179 8 275 342 Total 149 996 8 1 153 3 349

12.1 Claims recoverable

Note 2013/14 2012/1312 R’000 R’000

National departments 285 285 Provincial departments 593 2 722

Total 878 3 007




12.2 Staff debt

Note 2013/14 2012/1312 R’000 R’000

Staff debts 275 342 Total 275 342

13. Voted funds to be surrendered to the Revenue Fund

Note 2013/14 2012/13R’000 R’000

Opening balance 2 597 2 648 Transfer from statement of financial performance 18 109 6 338 Voted funds not requested/not received 1.1 (16 923) (3 741) Paid during the year (2 597) (2 648) Closing balance 1 186 2 597

14. Departmental revenue and NRF Receipts to be surrendered to

the Revenue Fund

Note 2013/14 2012/13R’000 R’000

Opening balance 87 636 Transfer from statement of financial performance 2 315 298 Own revenue included in appropriation 240 227 Paid during the year (2 611) (1 074) Closing balance 31 87

15. Payables – current

Note 2013/14 2012/13R’000 R’000

Advances received 15.1 991 2 325 Clearing accounts 15.2 7 - Total 998 2 325

15.1 Advances received

Note 2013/14 2012/13R’000 R’000

Other institutions 15 991 2 325 Total 991 2 325

15.2 Other payables

Note 2013/14 2012/13R’000 R’000

Clearing accounts 15 7 -

Total 7 -





16. Net cash flow available from operating activitiesNote 2013/14 2012/13

R’000 R’000 Net surplus/(deficit) as per Statement of Financial Performance

20 294 5 635

Add back non cash/cash movements not deemed operating activities

(4 969) 3 492

(Increase)/decrease in receivables – current 2 196 (559) Increase/(decrease) in payables – current (1 327) 292 Proceeds from sale of capital assets (313) - Expenditure on capital assets 16 366 10 995 Surrenders to Revenue Fund (5 208) (3 722) Voted funds not requested/not received (16 923) (3 741) Own revenue included in appropriation 240 227 Net cash flow generated by operating activities 15 325 9 127

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

Note 2013/14 2012/13R’000 R’000

Consolidated Paymaster General account 362 1 660 Cash with commercial banks (Local) 2 204 1 634 Total 2 566 3 294

18. Contingent liabilities

Note 2013/14 2012/13R’000 R’000

Liable to Nature Housing loan guarantees Employees Annex 2A - 34 Claims against the department Annex 2B 52 418 52 418 Intergovernmental payables (unconfirmed balances)

Annex 4 1 760 850

Total 54 178 53 302

The outcome of the claims against the department are uncertain as the liability is dependent on the decision of the court. Intergovernmental payables are uncertain as the amount has not been confirmed. A legal claim against the department was made subsequent to year end amounting to R2 338 000. The claim was instituted by a former employee who was discharged prior to the 2012/13 financial year. This adjustment has been applied retrospectively.

19. Commitments

Note 2013/14 2012/13R’000 R’000

Current expenditure Approved and contracted 240 121 234 528 Approved but not yet contracted 7 707 -

247 828 234 528 Capital expenditure Approved and contracted 1 829 419

Total Commitments 249 657 234 947

Commitments include contracts that extend to 31 March 2018 which amount to R224 606 861.97

20. Accruals2013/14 2012/13

R’000 R’000 Listed by economic classification

30 Days Total Total Goods and services 7 480 7 480 8 912 Other 168 168 769 Total 7 648 7 648 9 681



2013/14 2012/13R’000 R’000

Listed by programme level Administration 1 825 3 099 Institutional Building and Transformation 4 549 5 524 Policy and Governance 202 234 Executive Support 1 072 824 Total 7 648 9 681

Note 2013/14 2012/13

R’000 R’000

Confirmed balances with other departments Annex 4 50 60

Total 50 60

Accruals mainly relate to services in March 2014 and will be paid after year end.

21. Employee benefits2013/14 2012/13

R’000 R’000 Leave entitlement 5 821 6 152 Service bonus (Thirteenth cheque) 4 445 4 158 Performance awards 2 709 - Capped leave commitments 15 321 17 606 Total 28 296 27 916

Included in the leave entitlement benefit are negative leave balances amounting to R207 812. At 31 March 2014 there were 42 outstanding PILIR applications at year end estimated at a cost of R674 418.23

22. Lease commitments

22.1 Finance leases expenditure

2013/14Machinery and

equipmentTotal

Not later than 1 year 5 352 5 352 Later than 1 year and not later than 5 years 3 818 3 818 Total lease commitments 9 170 9 170 2012/13 Machinery and

equipmentTotal

Not later than 1 year 4 899 4 899 Later than 1 year and not later than 5 years 3 397 3 397 Total lease commitments 8 296 8 296

The finance leases relate to printers and photocopiers, government fleet and cellular phones.

Cellular Phones: The service level agreement allows for the renewal of the lease and does not include any escalation clauses. The service level agreements does not include any restrictions.

Printers and photocopy machines: The service level agreement allows for the renewal of the lease and does not include any escalation clauses. Restrictions imposed on the department relate to repairs and maintenance, disposal and sub-leasing of assets.

Fleet: The service level agreement is in place for an indefinite period and includes the review of the rates on an annual basis in terms of National Treasury Regulations (19.5.3). Restrictions relate to repairs and maintenance, disposal, enhancement and sub-leasing.



23. Irregular expenditure

23.1 Reconciliation of irregular expenditure

Note 2013/14 2012/13R’000 R’000

Opening balance 552 38 550 Add: Irregular expenditure – relating to current year - - Less: Prior year amounts condoned (552) (37 998) Irregular expenditure awaiting condonation - 552

Analysis of awaiting condonation per age classification Prior years - 552 Total - 552

23.2 Details of irregular expenditure condoned

Incident Condoned by (condoning authority)

2013/14

R’000 Non-compliance with HR regulations Executive Authority 552

Total 552

24. Fruitless and wasteful expenditure

24.1 Reconciliation of fruitless and wasteful expenditure

Note 2013/14 2012/13R’000 R’000

Opening balance - - Fruitless and wasteful expenditure – relating to prior year

- 34

Less: Amounts resolved - (34) Fruitless and wasteful expenditure awaiting resolution

- -


25. Related party transactions

Office of the Premier has transacted with the parties listed below and has elected to disclose these relationships:RULIV – The Institution was appointed to be the implementing agent for SURUDEC programme funded by European Union.ECSECC – This is an entity of the department as disclosed in Annexure 1B. The Modified Cash Standard requires disclosure only in the Annexures.Department of Roads and Public Works – The department has provided office space to the Office of the Premier free of charge during the year review.Department of Transport – The department has provided Government vehicles to the Office of the Premier under a lease arrangement managed by the Trading Entity in the department of Transport.

26. Key management personnel

No. of Individuals

2013/14 2012/13

R’000 R’000 Political office bearers – Honourable Premier

1 1 983 1 898

Officials: Level 15 to 16 12 11 720 12 016 Level 14 (incl. CFO if at a lower level)

18 14 611 10 027

Total 28 314 23 941




27. Impairment

Note 2013/14 2012/13R’000 R’000

Impairment of receivables 51 100

Total 51 100

28. Non-adjusting events after reporting date

2013/14 Nature of event R’000 Orders decommitted after year end 254 Disposal of office furniture and equipment 282 A significant contract was entered into after year end relating to telephone

services

2 227

Total 2 763

Subsequent to year end the following functions were transferred to Office of the Premier:

• The Department of Social Development and Special Programmes

transferred the Special Programmes function; and

• Provincial Planning and Treasury transferred the Planning function.

29. Movable Tangible Capital Assets

Opening balance

Curr Year Adjustments to prior year

balances

Additions Disposals

Closing Balance

R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT

17 114 (942) 4 253 (116) 20 309

Transport assets 955 - - - 955

Computer equipment

6 631 (841) 2 033 (7) 7 816

Furniture and office equipment

6 332 41 2 220 (7) 8 586

Other machinery and equipment

3 196 (142) - (102) 2 952

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

17 114 (942) 4 253 (116) 20 309




29.1 Additions

Cash (Capital Work in Progress current costs and finance

lease payments)

Total

R’000 R’000 R’000


11 679 (7 426) 4 253

Transport assets 2 515 (2 515) - Computer equipment 2 033 - 2 033 Furniture and office equipment

2 220 - 2 220


4 911 (4 911) -

TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS

11 679 (7 426) 4 253

29.2 Disposals

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Sold for cash Transfer out or

destroyed or

scrapped

Total disposals

Cash Received

Actual

R’000 R’000 R’000 R’000


109 7 116 313

Transport assets - - - 282 Computer equipment - 7 7 - Furniture and office equipment

7 - 7 31


102 - 102 -

TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS

109 7 116 313




29.3 Movement for 2012/13

Opening balance

Curr Year Adjustments to prior year

balances

Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000


16 823 (1 058) 4 545 (3 196) 17 114

Transport assets

1 856 - - (901) 955

Computer equipment

4 319 (841) 4 196 (1 043) 6 631

Furniture and office equipment

7 416 (204) 349 (1 229) 6 332


3 232 (13) - (23) 3 196

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

16 823 (1 058) 4 545 (3 196) 17 114

29.4 Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2014

Machinery and equipment

Total

R’000 R’000

Opening balance 5 908 5 908 Curr Year Adjustments to Prior Year balances 324 324 Additions

1 353 1 353 Disposals (191) (191)

TOTAL MINOR ASSETS 7 394 7 394


Total

Number of minor assets at cost 7 437 7 437 TOTAL NUMBER OF MINOR ASSETS 7 437 7 437

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2013


Total

R’000 R’000

Opening balance 5 227 5 227 Curr Year Adjustments to Prior Year balances

796 796

Additions 500 500 Disposals (615) (615) TOTAL MINOR ASSETS 5 908 5 908




Total

Number of minor assets at cost 6 535 6 535 TOTAL NUMBER OF MINOR ASSETS

6 535 6 535

30. Intangible Capital Assets

Opening balance

Additions Closing Balance

R’000 R’000 R’000

SOFTWARE 3 418 26 3 444

PATENTS, LICENCES, COPYRIGHT, BRAND NAMES, TRADEMARKS

1 098 - 1 098

TOTAL INTANGIBLE CAPITAL ASSETS 4 516 26 4 542

30.1 Additions

Cash TotalR’000 R’000

SOFTWARE 26 26 TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS 26 26

30.2 Movement for 2012/13

Opening balance

Additions Closing Balance

R’000 R’000 R’000

SOFTWARE 3 413 5 3 418

PATENTS, LICENCES, COPYRIGHT, BRAND NAMES, TRADEMARKS

- 1 098 1 098

TOTAL INTANGIBLE CAPITAL ASSETS 3 413 1 103 4 516

31. Immovable Tangible Capital Assets

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Opening balance

Current Year

Adjust-ments to

prior year balances


R’000

R’000

R’000

R’000

R’000

OTHER FIXED STRUCTURES

59 786 (1 069) 4 661 (45) 63 333

Other fixed structures

59 786 (1 069) 4 661 (45) 63 333

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS

59 786 (1 069) 4 661 (45) 63 333




ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Cash Non-cash (Capital Work in

Progress current

costs and finance

lease payments)

Received current, not paid

(Paid current

year, received

prior year)

Total

R’000 R’000 R’000 R’000 R’000

BUILDING AND OTHER FIXED STRUCTURES

4 661 - - - 4 661


4 661 - - - 4 661

TOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS

4 661 - - - 4 661



Disposals

DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Sold for cash

Transfer out or

destroyed or

scrapped

Total disposals

Cash Received

Actual

R’000 R’000 R’000 R’000 BUILDINGS AND OTHER FIXED STRUCTURES

- 45 45 -


- 45 45 -

TOTAL DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS

- 45 45 -


Movement for 2012/13

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Opening balance

Curr Year Adjust-

ments to prior year balances


R’000 R’000 R’000 R’000

R’000

BUILDINGS AND OTHER FIXED STRUCTURES

59 786 - - - 59 786


59 786 - - - 59 786

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS

59 786 - - - 59 786

32. Change in accounting policies

Change in accounting policy for secondary information

Note 2012/13 2011/12R’000 R’000

The comparative amounts in Note 29

were restated as follows:

Computer equipment (58 212) (58 212) Furniture and office equipment (69) (69) Other machinery and equipment (547) (547) Minor assets – Machinery and

equipment

(958) (958)

Net effect on the note (59 786) (59 786)

The comparative amounts in Note 25

were restated as follows:

RULIV (8 683) (9 794) Net effect on the note (8 683) (9 794)

ICT infrastructure assets to the value of R59 786 000 were previously classified as movable tangible assets are now disclosed as Immovable tangible assets. This adjustment has been applied retrospectively. Payments made to RULIV amounting to R8 683 000 (2012: R9 794 000) were classified as related parties in prior years. Only transactions with entities falling under the Premier’s portfolio are required to be disclosed per the Modified Cash Standards, thus the related party disclosure has been adjusted retrospectively.



Disposals

DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Sold for cash

Transfer out or

destroyed or

scrapped

Total disposals

Cash Received

Actual

R’000 R’000 R’000 R’000 BUILDINGS AND OTHER FIXED STRUCTURES

- 45 45 -


- 45 45 -

TOTAL DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS

- 45 45 -

190


33. Prior period errors

Correction of prior period error for secondary informationNote 2012/13 2011/12

R’000 R’000 The comparative amounts in Note 18 were

restated as follows:

Contingent liabilities 1 000 - Net effect on the note 1 000 -

Contingent assets (1 400) - Net effect on the note (1 400) -

A contingent asset was previously recognised amounting to R1 400 000. This is not an asset to the Office of the Premier, as the department is recovering this amount on behalf of the European Union. A retrospective adjustment to contingent liabilities amounting to R1 000 000 was effected, being the estimated amount to recover the funds.

Provision for doubtful debts was disclosed as a provision in 2012/13 (R100 000). It has been disclosed as an impairment in Note 27 in the 2013/14 financial year, retrospectively.


191

Annexure 1A

Statement of Unconditional Grants and Transfers to Municipalities

NAME OF MUNICIPALITY

GRANT ALLOCATION TRANSFER SPENT 2012/13

Amount

Roll Overs

Adjust-ments

Total

Available

Actual

Transfer

% of Available

funds Transferred

Amount received

by municipality

Amount spent by

municipality

% of available

funds spent by

municipality

Total Available

R’000 R’000 R’000 R’000 R’000 % R’000 R’000 % R’000

Buffalo City - - 2 2 1 50% 1 1 100% 1

- - 2 2 1 1 1 100% 1

Annexure 1B

Statement of transfers to departmental agencies and accounts

DEPARTMENT/ AGENCY/ ACCOUNT

TRANSFER ALLOCATION TRANSFER 2012/13

AdjustedAppro-priation

Roll

Overs

Adjust-ments Total

Available

Actual Transfer

% of Available

funds Transferred

Appro-priation Act

R’000 R’000 R’000 R’000 R’000 % R’000

ECSECC 42 659 - - 42 659 42 659 100% 41 966

TOTAL 42 659 - - 42 659 42 659 100% 41 966

EASTERN CAPE – OFFICE OF THE PREMIER | VOTE 1UNAUDITED ANNEXURES TO THE FINANCIAL STATEMENTS

for the year ended 31 March 2014



Annexure 1C

Statement of Transfers to Universities and Technikons

DEPARTMENT/ AGENCY/ ACCOUNT

TRANSFER ALLOCATION TRANSFER 2012/13

AdjustedAppropriation

Roll

Overs

AdjustmentsTotal

Available

Actual Transfer

% of Available

funds Transferred

Appro-priation Act

R’000 R’000 R’000 R’000 R’000 % R’000

NSFAS 20 476 - 20 000 40 476 40 476 100% -

TOTAL 20 476 - 20 000 40 476 40 476 100% -





Annexure 1DStatement of Transfers to Households

HOUSEHOLDS

TRANSFER ALLOCATION EXPENDITURE 2012/13

AdjustedAppropriation

Act

Roll

Overs

Adjust-ments

Total

Available

Actual Transfer

% of Available

funds Transferred

Appro-priation Act

R’000 R’000 R’000 R’000 R’000 % R’000

Transfers

Leave Gratuity 4 494 - - 4 494 4 494 100% 2 230

Severance package - - - - - - 796

Injury on duty - - - - - - 7

Bursaries non-employees - - 2 416 2 416 2 413 100% 235

Other-households 1029 - 1 361 2 390 2 390 100% 2 360

TOTAL 5 523 - 3 777 9 300 9 297 100% 5 628




194




Annexure 1FStatement of Aid Assistance Received

NAME OF DONOR PURPOSE OPENING CLOSING BALANCE REVENUE EXPENDI-TURE BALANCE

R’000 R’000 R’000 R’000

Received in cash European Union

Rural Livelihoods Development1 634 12 142 1 504

TOTAL

1 634 12 142 1 504

Annexure 1EStatement of Gifts, Donations and Sponsorships Received

NAME OF ORGANISATION NATURE OF GIFT, DONATION OR SPONSORSHIP2013/14 2012/13

R’000 R’000

Received in kindOld Mutual Gifts received for Secretaries Day 27 -Afrocentric Training Solution Tablets 6 -Elwazini Tablets 3 -Page Sales USB’s for the Culture Change Retreat 20 -

TOTAL 56 -

Sponsored gifts and items were submitted to Inyathi Primary School as part of the Nelson Mandela Day project of setting up of a reading centre. Sponsoring organisations were, Umbizo, Insight, Servest, Second to None, Bravo Afrika, Shell Garage Bhisho, Sanlam, Imiyalezo, Vodacom, Standard Bank and SASSA.



Annexure 2AStatement of Financial Guarantees Issued as at 31 March 2014 – Local

Guarantor institution

Guarantee in respect of

Original guaranteed

capital amount

Opening balance

1 April 2013

Guarantees draw downsduring the

year

Guarantees repayments/ cancelled/ reduced/ released

during the year

Revaluations

Closing balance

31 March 2014

Guaranteed interest for

year ended 31 March 2014

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

HousingFirst National Bank - 34 - (34) - - - -

TOTAL - 34 - (34) - - - -

Annexure 1GStatement of Gifts, Donations and Sponsorships Made and Remmissions, Refunds and Payments Made as an Act of Grace

NATURE OF GIFT, DONATION OR SPONSORSHIP

(Group major categories but list material items including name of organisation

2013/14 2012/13

R’000 R’000

Remissions, refunds, and payments made as an act of grace Local and foreign dignitaries 17 87Staff 24 44Communities 50 213

TOTAL 91 344





Annexure 2BStatement of Contingent Liabilities as at 31 March 2014

Nature of Liability

Liabilities incurred during the year

Liabilities paid/cancelled/reduced

during the year

Liabilities recoverable (Provide

details hereunder)

Opening ClosingBalance Balance

1 April 2013 31 March 2014

R’000 R’000 R’000 R’000 R’000

Claims against the department

Contractual Obligations 52 418 - - - 52 418

TOTAL 52 418 - - - 52 418





Annexure 3Claims Recoverable

Government Entity

Confirmed balance outstanding Unconfirmed balance outstanding Total

31/03/2014 31/03/2013 31/03/2014 31/03/2013 31/03/2014 31/03/2013

R’000 R’000 R’000 R’000 R’000 R’000

DepartmentDepartment of Education - 796 - - - 796Department Economic Development, Environmental Affairs & Tourism - 473 - - - 473National Department of Social Development - - 285 285 285 285Department of Social Development & Special Programmes - - - 311 - 311Department of Sport, Recreation, Arts and Culture - 772 532 380 532 1 152National Department of Arts & Culture - - 61 61 -

TOTAL - 2 041 878 976 878 3 017





Annexure 4Inter-Government Payables

GOVERNMENT ENTITY

Confirmed balance outstanding Unconfirmed balance outstanding TOTAL

31/03/2014 31/03/2013 31/03/2014 31/03/2013 31/03/2014 31/03/2013

R’000 R’000 R’000 R’000 R’000 R’000

DEPARTMENTSCurrentDepartment of Provincial Planning & Treasury - - 778 756 778 756Department of Rural Development & Agrarian Reform - 33 - - - 33Department of Transport - 2 - 85 - 87Department of Sport, Recreation, Arts & Culture - 25 - - - 25Department of Social Development & Special Programmes - - - 9 - 9Department of Justice & Constitutional Development 50 - 15 - 65 -TOTAL 50 60 793 850 843 910

OTHER GOVERNMENT ENTITYCurrentGovernment Employee Pension Fund - - 967 - 967 -TOTAL - - 967 - 967 -





Annexure 5Inter-Entity Advances Received

ENTITY

Confirmed balance outstanding Unconfirmed balance outstanding TOTAL

31/03/2014 31/03/2013 31/03/2014 31/03/2013 31/03/2014 31/03/2013

R’000 R’000 R’000 R’000 R’000 R’000

Other Institutions991 2 325 - - 991 2 325

TOTAL 991 2 325 - - 991 2 325




200

NOTES



NOTES

PHYSICAL ADDRESS Office of the Premier BuildingIndependence AvenueBhishoEastern Cape

POSTAL ADDRESS Private Bag X0047Bhisho5605Tel: +27(0)40 609 [email protected] | www.ecprov.gov.za

PR268/2014

ISBN: 978-0-621-43032-5

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