Office of the Premier Annual Report 2013/2014€¦ · Northern Cape Office of the Premier Vote 1 Annual Report for 2013/14 Financial Year 6 A.3 Foreword by the Premier This 2013/14

Leading the Northern Cape Province to prosperity with a quality life for all.

Tel: 053 838-2600, Fax: 053 838-2767JW Sauer Building, Cnr Roper & Quinn Road, Kimberley, 8301

PR260/2014 ISBN: 978-0-621-43004-2

Designed and Printed by SwiftPrint, Tel 053 839-2900, Kimberley

Office of the Premier Annual Report

2013/2014

Northern Cape Office of the Premier Vote 1 | Annual Report for 2013/14 Financial Year

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Table of ContentsPART A: General Information ___________________________________________________________________ 3

A.1 Department’s General Information ________________________________________________________ 4A.2 List of Abbreviations /Acronyms ___________________________________________________________ 5A.3 Foreword by the Premier ________________________________________________________________ 6A.4 Introduction by Director-General __________________________________________________________ 7A.5 Report of the Accounting Officer __________________________________________________________ 8A.6 Statement of Responsibility and Confirmation of the Accuracy of the Annual Report ________________12A.7 Strategic Overview _____________________________________________________________________13

7.1) Vision ___________________________________________________________________________137.2) Mission __________________________________________________________________________137.3) Values ___________________________________________________________________________13

A.8 Legislative and Other Mandates __________________________________________________________14A.9 Organisational Structure ________________________________________________________________16A.10 Entities Reporting to the Premier _________________________________________________________16

PART B: Performance Information ______________________________________________________________17B.1 Overview of Departmental Performance ___________________________________________________18

1.1) Service delivery environment ________________________________________________________181.2) Service Delivery Improvement Plan ___________________________________________________211.3) Organisational environment Guideline ________________________________________________211.4) Key policy developments and legislative changes ______________________________________ 22

B.2 Strategic Outcome Oriented Goals _______________________________________________________ 22B.3 Performance Information by Programme __________________________________________________ 23

3.1) PROGRAMME 1: ADMINISTRATION ___________________________________________________ 233.2) PROGRAMME 2: INSTITUTIONAL DEVELOPMENT ________________________________________ 293.3) PROGRAMME 3: POLICY AND GOVERNANCE ____________________________________________413.4) Strategy to overcome areas of under performance ______________________________________ 503.5) Changes to planned targets _________________________________________________________513.6) Linking performance with budgets ___________________________________________________53

B.4 Transfer Payments _____________________________________________________________________ 544.1) Transfer payments to Public Entities _________________________________________________ 544.2) Transfer payments to all organisations other than public entities __________________________ 54

B.5 Conditional Grants ____________________________________________________________________ 545.1) Conditional grants and earmarked funds paid _________________________________________ 545.2) Conditional grants and earmarked funds received ______________________________________ 54

B.6 Donor Funds __________________________________________________________________________556.1) Donor Funds Received _____________________________________________________________55

B.7 Capital Investment _____________________________________________________________________55


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PART C: Governance _________________________________________________________________________ 56C.1 Introduction ___________________________________________________________________________57C.2 Risk Management ______________________________________________________________________57C.3 Fraud and Corruption ___________________________________________________________________57C.4 Minimising Conflict of Interest ____________________________________________________________57C.5 Code of Conduct ______________________________________________________________________ 58C.6 Health Safety and Environmental Issues ___________________________________________________ 58C.7 Portfolio Committees __________________________________________________________________ 58C.8 SCOPA Resolutions ____________________________________________________________________ 58C.9 Prior modifications to audit reports _______________________________________________________ 58C.10 Internal Control Unit ___________________________________________________________________ 58C.11 Internal Audit and Audit Committees ______________________________________________________59C.12 Audit Committee Report ________________________________________________________________ 60

PART D: Human Resource Management ________________________________________________________ 64D.1 Human Resources Oversight Statistics _____________________________________________________ 65

PART E: Financial Information _________________________________________________________________ 86 Report of the Auditor General ____________________________________________________________87 Annual Financial Statements _____________________________________________________________92


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PART A: General Information


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PART A: General Information A.1 Department’s General Information

Full name of the department Northern Cape Office of the Premier

Physical address of Head Office JW Sauer BuildingCorner of Roper and Quinn StreetsKimberley

Postal Address of Head Office Private Bag X5016Kimberley8300

Contact telephone numbers 053 8382950

Email address:[email protected]@ncpg.gov.za

Website address www.northern-cape.gov.za


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A.2 List of Abbreviations /Acronyms

AFS Annual Financial Statements

AGSA Auditor-General of South Africa

AO Accounting Officer

BBBEE Broad Based Black Economic Empowerment

CFO Chief Financial Officer

CJS Criminal Justice Systems

DORA Division of Revenue Act

DPSA Department of Public Service Administration

EU European Union

GIAMA Government Immovable Asset Management Act

HOD Head of Department

HR Human Resources

MEC Member of Executive Council

MPSA Minister for the Public Service and Administration

MTEF Medium Term Expenditure Framework

MTS Provincial Maths, Science and Technology

NC Northern Cape

NED Northern Cape Education Department

PFMA Public Finance Management Act

PPP Public Private Partnerships

RWOPS Remuneration for work performed outside Public Service

SCM Supply Chain Management

SCOPA Standing Committee on Public Accounts

SDIP Service Delivery Improvement Plan

SITA State Information Technology Agency

SMME Small Medium and Micro Enterprises

SNE Special Needs Education

TFR Total Fertility Rate

TR Treasury Regulations


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A.3 Foreword by the Premier

This 2013/14 annual report is significant as it is a last one for the fourth term of government. Furthermore it is at a backdrop of our celebrations of 20 years of democracy and freedom. I have no doubt in my mind that work performed by the Office of the Premier which is documented elsewhere in this report has contributed in some ways in the betterment of lives of people of Northern Cape. The work of the Office was guided by the outcomes approach of the government as well as its focus policy priority areas. I take this opportunity to thank the Director-General, his management collective and all staff of the Office of the Premier for all their endeavors to discharge coordination and monitoring responsibilities within the Northern Cape Provincial administration during 2013/14 financial year. I congratulate the Director-General and his team for obtaining a financially unqualified audit opinion for Vote 1. I am convinced that the Office of the

Premier will continue to improve in its service offerings to the Provincial administration in the upcoming financial year.

Finally, I take this opportunity to thank internal and external stakeholders in their various roles for their support and cooperation with the Office of the Premier during the 2013/14 financial year.

Sylvia LucasHonourable Premier: Northern Cape


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A.4 Introduction by the Director-General

In presenting this annual report, I thank the Premier for guidance and support in my execution of functions as the Director-General for the Northern Cape as well as the Accounting Officer for Vote 1. I also appreciate the support and cooperation that I received from the Heads of department in the Provincial administration and all relevant stakeholders.

I am very pleased that the Office of the Premier obtained a financially unqualified audit opinion from our external auditors in the audit of 2013/14 annual financial statements. I am also equally pleased that the external auditors were satisfied with our pre-determined objectives in that they did not detect any material findings in our performance information documented elsewhere in this annual report. For these, I salute my management team as a collective as well as all staff of the Office of the

Premier as this was possible through a team effort.

On the other side of the coin, I am a bit disappointed that there were one or two non-compliance issues of concern to the external auditors, that is mainly irregular expenditure, which was an inhibition for us to reach a pinnacle audit outcome with no findings. Without being seen as making excuses, there were exogenous causation elements on the material portion of the reported irregular expenditure due to idiosyncratic nature of the Office of the Premier’s operations at times. Some of the reported irregular expenditure could have been circumvented due its endogeniety, for that we have taken appropriate disciplinary action on the affected officials as reported elsewhere in this report. In my view, these non-compliance findings are not insurmountable since they are not pervasive in totality, therefore, we are instituting realistic action plans for improvement.

Nationally, the Office of the Premier is one of the leading Offices on the turnaround time in terms resolving queries and complaints lodged by citizens of Northern Cape in the Presidential hotline. On a province-wide scale, through our coordination role, we played a significant role to ensure 100% disclosure of senior management financial disclosures to the Public service commission. Through its corporate governance institutional structures such as Executive Council meetings, HOD & other fora, Provincial Lekgotla, PIGF’s (Premier’s Inter Governmental fora), cabinet cluster meetings and many others, the Office played a central coordinating role throughout the 2013/14 financial year on issues affecting the entire Provincial administration on key projects and initiatives around key policy priority areas.

Overall, I am satisfied without performance of the Office of the Premier. Of course there is always a room for improvement as we are always striving for perfection.

Advocate Justice BekebekeDirector-GeneralNorthern Cape


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A.5 Report of the Accounting Officer

Overview of the operations of the department:

The Office of the Premier is responsible for coordinating, monitoring and evaluating of national government policies in the province. The department derives its mandate from the constitution of South Africa, Act 108 of 1996.

Advocate Justice Bekebeke was the Director-General for the Northern Cape Provincial Administration (as well as the Accounting Officer: Officer of the Premier) for the entire 2013/14 financial year.

Overview of the financial results of the department:

Departmental receipts

Departmental receipts

2013/2014 2012/2013

Estimate(R’000)

Actual Amount Collected

(R’000)

(Over)/Under Collection

(R’000)

Estimate (R’000)

Actual Amount

Collected (R’000)

(Over)/Under Collection

(R’000)

Sale of goods and services other than capital assets

110 88 22 104 73 31

Sale of capital assets 90 200 (110) - - -

Financial transactions in assets and liabilities

48 (48) 85 100 (15)

Total 200 336 (136) 189 173 16

The Office of the Premier is not a revenue collecting department. Revenue collected consists of sale of bid documents, garnishee orders, agency fees received by Insurance companies and debts paid by government officials and departments.

Programme Expenditure

Programme Name2013/2014 2012/2013

Final Appropriation

Actual Expenditure

(Over)/ Under Expenditure

Final Appropriation

Actual Expenditure

(Over)/ Under

Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Administration 81 959 79 663 2 296 69 862 69 219 643

Institutional Development

72 477 71 526 951 52 510 52 509 1

Policy and Governance

32 736 28 931 3 805 34 605 30 059 4 546

Total 187 172 180 120 7 052 156 977 151 787 5 190

Variance of R2 296 000 under Programme 1 is as a result of furniture and infrastructure expenditure specifically earmarked for the relocation of officials from Templar building to JW Sauer Building, which was committed but could not be finalised at year end due to delays in renovations by Transnet Properties. The finalisation of this project was postponed to 31 August 2014 and a rollover of funds has been requested to re-allocate funds in the 2014/15 financial year.


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Variance of R951 000 under Programme 2 is attributed to delays in the renewal of Symantec software licences on the part of SITA to procure the service of an approved SITA service provider. As at year end the funds were committed and a rollover of funds request has been submitted to Provincial Treasury for funds to be re-allocated in the 2014/15 financial year.

Variance of R3 805 000 is attributed to earmarked funds for the Northern Cape Provincial Government’s 20 year review project, which was committed but not finalised at year end due to delays in the appointment process to ensure compliance with supply chain management processes. Furthermore delays in the delivery of some capital assets contributed to the saving. A rollover request for both occurrences has been submitted to Provincial Treasury for re-allocation of funds during the 2014/15 financial year.

Virements/roll overs

Virements

At financial year end, virements between all three programmes of the vote were processed to defray excess expenditure on goods and services utilising savings from compensation of employees. Refer to the detailed breakdown of the virements as reflecting on the appropriation statement.

The virements were approved by the Accounting Officer in compliance with provisions of section 43 of the Public Finance Management Act (PFMA). Detailed reports pertaining to the virements were submitted to Provincial Treasury and the Executing Authority in compliance with paragraph 43 (2) of the PFMA.

Roll-overs

At financial year end savings of R643 000, R1 000 and R4 546 000 were realised under Programme 1, 2 and 3 respectively. These savings relate to specific earmarked funds, which could not be spent by financial year end and requests for roll-over was subsequently submitted to Provincial Treasury. Refer to Programme Expenditure for details thereof.

Public Private Partnerships

None concluded during 2013/14.

Discontinued activities / activities to be discontinued

None.

New or proposed activities

With effect from 1 April 2013, Provincial Human Resources Development (HRD) was transferred from the Department of Education to the Office of the Premier. The rationale of the aforementioned transfer was to raise the profile of the function to the strategic level of the Office of the Premier which is an apex of provincial government thereby ensuring better coordination of the provincial HRD strategy.


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The following are the financial implications of the aforesaid transfer to the 2013/14 annual financial statements to the receiving department:

• Three(3)employeesweretransferredinwithanimpacttotheopeningbalanceoftheemployeebenefitsnote.Refer to note 31 in the annual financial statements.

• The budget relating to the transferred functionwas adjusted centrally through the Provincial Treasury tocoincide with the 2013/14 budget allocation letter. Therefore there is no financial impact of the budget transfer of the function in the 2013/14 appropriation statement.

Supply chain management

The provincial administration through the Office of the Premier concluded and participated in a tripartite, Nation @ Work project, involving the South African Broadcasting Corporation, the Department of Communications and the Office of the Premier. The value of the project was R13 543 508. All due processes were conformed to.

Due to the unique nature of the Office of the Premier, irregular expenditure to the value of R5 022 000.00 was incurred. Detailed motivations were documented citing reasons for the supply chain management processes followed. Examples of the irregular expenditure include rendering of services in remote areas, high profile provincial events held at short notice, engagement of service providers biased towards quality and capacity considerations, etc. Unfortunately there was a potential risk that this expenditure would not meet the narrow definition of deviation as per the supply chain management framework. To avoid qualification and different interpretation risks as well as inevitable debates on the regularity and irregularity of such expenditure, the Office of the Premier decided to report it as irregular as the broad definition of deviation may not meet the narrow one. We are confident that the condoning authority will understand the context and circumstances that gave rise to the expenditure.

For other transactions, preventative controls are in place for the prevention of irregular expenditure. However, there are instances where officials did not implement those controls. The value of this irregular expenditure that could have been avoided is R1 500 000. We have charged the officials after they were given appropriate training.

Gifts and Donations received in kind from non-related parties

Gifts and donations to the value of R130 000 were received by the Office of the Premier. Refer to Annexure 1D for a detailed breakdown.

Exemptions and deviations received from the National Treasury

None


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Events after the reporting date

During the post balance sheet period, a final settlement of R 699 334.50 was reached by both affected parties on a legal dispute that existed at balance sheet date and was in its final stage of being settled. The settlement was a prudent measure to avoid escalation of costs on the issue.

The impact of the aforementioned post balance sheet event at financial statement level is an upward adjustment of the specific provision on the dispute raised at reporting date to R 699 334.50 to ensure fair presentation. The legal provision that was initially under-provided for at reporting date based on available information at the time. Refer to note 27: Provisions.

R’000

Upward of the legal Adjustment Provision 699

699

Acknowledgement/s or Appreciation

I would like to take this opportunity to thank the Premier for guidance, my management team and staff in general for support throughout the financial year.

Approval and sign off

_________________Advocate Justice BekebekeAccounting Officer Office of the PremierDate: 31 May 2014


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A.6 Statement of Responsibility and Confirmation of the Accuracy of the Annual Report

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

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

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

The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury.

The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks and guidelines issued by the National Treasury.

The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information.

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

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

In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the department for the financial year ended 31 March 2014.

Yours faithfully

___________________ Accounting OfficerAdvocate Justice BekebekeDate 31 May 2014


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A.7 Strategic Overview

7.1 Vision

Leading the Northern Cape Province to prosperity with a quality life for all.

7.2 Mission

To provide strategic leadership that will stimulate economic growth to its full potential and ensure high levels of social development.

7.3 Values

In order that it may realise its vision and mission the Office of the Premier has adopted the following values and guiding principles:

• Leadership—Wewillprovide leadership in all aspectsofprovincialgovernmentoperationsandpromoteevidence-based decision making;

• Transparencyandaccountability-Wewillbetransparentinallourservicedeliveryprocessandfosteracultureof fairness, honesty and integrity;

• Operational excellence—We are committed to rooting out irregular and corrupt activities and promotecontinuous learning, professionalism and efficient operations;

• Responsivenessandeffectiveness—Wewillberesponsivetotheneedsofourpeopleanddeliverhighqualityvalue added services;

• Equity and accessibility—We will improve access to services and treat our people equitably, especially,mainstreaming vulnerable groups; and

• Teamwork andparticipation—Wewillworkwithdepartments in theprovince andother stakeholders tostreamline and fast track the delivery of public services in the province.


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A8 Legislative and Other Mandates

The Office of the Premier is centrally positioned within the provincial government and derives its mandates from the following but not exhaustive legislation and regulatory framework.

• TheConstitutionoftheRepublicofSouthAfrica,1996;• ThePublicFinanceManagementAct,(ActNo.1of1999);• TreasuryRegulations;• AnnualDivisionofRevenueAct;• ThePublicServiceActandRegulations;• BasicConditionsofEmploymentAct,1997(ActNo.75of1997);• LabourRelationsAct,1995(ActNo.66of1995);• EmploymentEquityAct,1998(ActNo.55of1998);• SkillsDevelopmentAct,1998(ActNo.97of1998);• SkillsDevelopmentLevyAct,1999(ActNo.9of1999);• OccupationalHealthandSafetyAct,1983(ActNo.85of1993);• PromotionofAccesstoInformationAct,2000(ActNo.2of2000);• PromotionofAdministrativeofJusticeAct,2000(ActNo.3of2000);• TheIntegratedNationalDisabilityStrategyof1997;• NorthernCapePromotionofYouthAffairsAct,(ActNo.8of1994);• NationalPolicyFrameworkforWomen’sEmpowermentandGenderEquality;• ChildCareAct,2005(ActNo.38of2005);• PreferentialProcurementPolicyFrameworkAct,2000(ActNo.2of2000);• BroadBasedBlackEconomicEmpowermentAct,2000;• VariousagreementsnegotiatedattheprovincialCouncil,PSCBCandGeneralPublicServiceSectoralBargaining

Council;• PromotionofEquality&PreventionofUnfairDiscriminationAct4of2000;• TraditionalLeadershipandGovernanceFrameworkActof2003;• Inter-GovernmentalRelationsFrameworkAct13of2005;

Constitutional Mandates

The Premier exercises the executive authority, together with the other members of the Executive Council, by-• implementingprovinciallegislationintheprovince;• implementingallnational legislationwithinthefunctionalareaslistedinSchedule4or5exceptwherethe

Constitution or an Act of Parliament provides otherwise;• administeringintheprovince,nationallegislationoutsidethefunctionalareaslistedinSchedule4and5,the

administration of which has been assigned to the provincial executive in terms of an Act of Parliament;• developingandimplementingprovincialpolicy;• co-ordinatingthefunctionsoftheprovincialadministrationanditsdepartments;• preparingandinitiatingprovinciallegislation;and• performinganyotherfunctionassignedtotheprovincialexecutiveintermsoftheConstitutionoranActof

Parliament;• assentingtoandsigningBills;• referringaBillbacktotheprovinciallegislatureforreconsiderationoftheBill’sconstitutionality;• referringaBilltotheConstitutionalCourtforadecisionontheBill’sconstitutionality;summoningthelegislature

to an extraordinary sitting to conduct special business;• appointingcommissionsofinquiry;and


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• callingareferendumintheprovinceinaccordancewithnationallegislation;• appointingthemembersoftheExecutiveCouncil,assigningtheirpowersandfunctions,andbydismissing

them;• transferringtoamemberoftheExecutiveCouncil–• theadministrationofanylegislationentrustedtoanothermember;or• anypowerorfunctionentrustedbylegislationtoanothermember;• byensuringthatorgansofstate,throughlegislativeandothermeasures,assistandprotectandthecourtsto

ensure the independence, impartiality, dignity, accessibility and effectiveness of the courts;

Legislative Mandates

The Premier is responsible for the -• establishmentandabolishmentofanydepartmentoftheprovincialadministration;• determination regarding the allocationof any function to, or to abolitionof any functionof, anyofficeor

department of the provincial administration concerned or the transfer of any function from one such office or department to another or from such office or department or any body establish by or under any law of the provincial legislature or from any such body to such office or department;

• appointment,promotionandtransferofemployeesintheOfficeofthePremier;• appointment and other career incidents of a head of provincial administration and Provincial Heads of

Department;• determinationof areaof jurisdictionof traditional communities and recognitionof traditional leaders and

withdrawal of such recognition.

Relevant Court Rulings• DingaanHendrikNyathicaseagainstMemberoftheExecutiveCouncilfortheDepartmentofHealth,Gauteng

and Minister of Justice and Constitutional Development with Centre for Constitutional rights 2008 (9) BCLR 865 (CC);

• On2June2008theorderofconstitutionalinvaliditymadebythePretoriaHighcourtwasconfirmedbytheConstitutional Court in the following terms: Section 3 of the State Liability Act is declared to be inconsistent with the Constitution to the extent that it does not allow for execution or attachment against the state and that it does not provide for an express procedure for the satisfaction of judgment debts;

• Thedeclarationofinvalidityissuspendedforaperiodof12monthstoallowParliamenttopasslegislationthatprovides for the effective enforcement of court orders. Currently all such bills have not yet been adopted by Parliament and Department of Justice and Constitutional Development is in court requesting for extension of time to satisfy the court order;

• MatatieleMunicipalityandOthersvsPresidentoftheRepublicofSouthAfricaCCT37/05–Theprincipleinthiscase is the importance of consultation with 3rd parties in particular communities by Government when taken decisions that will affect them;

• Presidentof theRSAandOthersvsSouthAfricaRugbyFootballUnionandOthers (1999)– InthiscasethePresident of South Africa was summoned by the court to come and give evidence in a civil matter and he did appear. Which means members of the Executive Council may be summoned to appear in court;

• Governmentof theRSAvsGrootboom(2000)–Theprincipal: right tohousing intermsofsection2of theConstitution of the Republic of South Africa, 1996;

• HoffmanvsSouthAfricanAirways-employmentdiscriminationagainstanHIV-positivepersonwasfoundtobe in contravention of the provisions of Promotion of Equality and Prevention of Unfair Discrimination Act 4 of 2000;


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• Larb-OdamvsMECintheDepartmentofEducationoftheNorth-WestProvince(1997)–thecourtstruckdownthe regulation made in terms of the Employment Educators Act, 1996 which prevents permanent residents from holding permanent posts in the Department of Education.

A.9 Organisational Structure

A.10 Entities Reporting to the Premier

Name of Entity Legislative Mandate

Financial Relationship Nature of Operations

Premier’s Bursary Trust Fund

Trust Deed Premier is the patron of the fund. OTP makes annual transfers to the trust fund.

Study loans for students

Mme Re Ka Thusa Trust Fund

Trust Deed Premier is the patron of the fund. OTP makes annual transfers to the trust fund.

Financial assistance for previously disadvantaged women to empower them to become economically active


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PART B: Performance Information


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PART B: Performance Information

B.1 Overview of Departmental Performance 1.1 Service delivery environment

The Northern Cape Province is the largest province, covering approximately 30% of South Africa’s landmass. But it has the smallest population of 1 145 861 people, and contributing only 2.2% to the total population of South Africa (Mid-year population estimates, 2011: 10).

The development regions and corridors constitute a clustering of nodes and the creation of a system that will synergise the capacity of stakeholders and entities within these nodes. The map below summarises and illustrates the spatial context of the current development regions, corridors and anchor projects in the Northern Cape.

The Provincial Administration have made strides to address service delivery backlogs, challenges still remains but progress have been made in a wide range of the following areas:

• TheofficialunemploymentratefortheNorthernCapehasdeclinedfromahighof35.7%in2001to27.4%in2011, while the average household income more than doubled over the same period;

• 82.4%ofhouseholdsresideinformalstructures;• Thepercentageofpersons20yearsorolderwithnoschoolinghasdecreasedfrom22.7%in1996to11.3%in

2011, while the percentage of persons with matric or higher more than doubled from 11.1% in 1996 to 23% in 2011;

• TheNorthernCape,despitebeingbyfarthemostwaterscarceprovince,managedtoreducethepercentageofhouseholds without access to piped water from 6% in 2001 to 2.6% in 2011. This is far better than the national average of 8.8% and places the Northern Cape in 4th position nationally. Also, more than 90% of households have access to water inside their dwellings or in their yards;

• Morethan85%ofhouseholdsuseelectricityasapowersource;and• Twothirdsofourhouseholdshaveaccesstoflushtoilets.Althoughthepercentageofhouseholdsusingthe

bucket system has significantly decreased from 10% in 2001 to 4% in 2011, the issue of acceptable levels of sanitation still needs attention.

• SquareKilometreArray(SKA)andMeerkat:Radiotelescope• SolarPark:Generationofelectricityfromsolarradiation• GamagaraCorridor:Miningbelt(Iron,Manganese,Lime)• TourismCorridors:AlongtheN7inNamaqualandandtheNIinthesouth-east• MaricultureCorridor:Fishingandcommercialfishfarming• NamaquaIndustrialMineralCorridor:Miningofgranite,slateetc.• Cargoandfreighthubs• Orange/VaalCorridor:Agricultureandtoalesserextendalluvialdiamondmining• LakeXhariep!


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ORGANISATIONAL ENVIRONMENT

The fourth democratic government of South Africa under the leadership of President Jacob Zuma agreed on 12 outcomes as a key focus of work between 2010 and 2014. In order to achieve these 12 outcomes greater emphasis; during this electoral period; is placed on coordination, monitoring and evaluation. The Office of the Premier, as a centre of government, has the primary responsibility of coordinating, monitoring and evaluating the work of government across the entire provincial administration. The scope of application of this responsibility includes, in some instances, the local sphere of government. In addition, the Office of the Premier has the task to carry out its internal departmental obligations aimed at improving service delivery.

Furthermore, the organisational environment within the Office of the Premier is also largely influenced by an evolving developmental state that is aimed at addressing the triple challenges of poverty, unemployment and inequality. All efforts are being made to ensure that the Batho Pele values consistently permeate the organisational environment of the Office of the Premier.

The primary challenge faced by the Office of the Premier is that the organisational structure of the department is not adequately responsive to the demands of the current environment that calls for more coordination, monitoring and evaluation. In essence the current structure is designed for more internal functions and limits the department with regards to its primary responsibility of coordination, monitoring and evaluation of the provincial administration. In order to address this challenge, the Office of the Premier is in the process of realigning its organisational structure with the national generic framework to enable it to perform its primary responsibility and thereby pursue the achievement of the outcomes of government.

Time was invested in strengthening administrative systems that could bring about achieving most of the indicators of good governance amongst others:

• Anupandrunningperformancemanagementanddevelopmentsystem(level1uptoSMS);• 100%complianceondisclosureofinterestforms;• AnincreaseintheproductionofcredibleIntegratedDevelopmentPlansbymunicipalities;• RegularInter-governmentalRelationsFora(bothPremier’sandDistrict);• Improvedinternalcontrolenvironmentwithsoundoperationalandfinancialcontrols.

The challenge still remains meeting the increasing expectation of the previously disadvantaged people of the Northern Cape for quality services that really make a difference in their lives.


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1.2 Service Delivery Improvement Plan

Main services and standards

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

service

Actual achievement

Legal advisory service

Departments and officials in departments

4 Number of reports submitted to the Premier on legal services rendered.

4 Reports 4 Reports

Efficiency Services Departments 4 Monitoring reports on the provincial departments’ level of compliance with the legislative framework on organisational design.

4 Reports 4 Reports

Human Resource Development

Departments and officials in departments

4 Training and Development Reports outlining capacity development initiatives for employees to increase human capital in the Office of The Premier for improved performance.

4 Reports 4 Reports

Target groups People with disabilities, women, children

Two (2) Thusong Service Centre orientated (workshops and information sessions) on the Principles of Batho Pele

3 workshops /sessions

4 workshops /sessions

Data sharing service

Departments No sharing of data Develop a database for data sharing

PIMS system has been developed, need to be populated with data

Batho Pele arrangements with beneficiaries (Consultation access etc.)

The Office of the Premier has established a Batho Pele and Service Delivery unit which assists other departments with these issues.

Service delivery information tool

As the Office of the Premier renders services to other departments, there is no need for an information tool. The information is shared in various forums that meets up to 4 times per cycle.

Complaints mechanism

All complaints are dealt with in the various forums.

1.3 Organisational environment

Development of strategy focused organizational structures and organizational environment. Due to the dynamic nature of an organogram, it is necessary to constantly change the organizational structure of the Office of the Premier to allow for the ever changing environment within which the government is operating. This refers, inter alia, to legislation, change in management and the political realm. Due to the outcomes approach the organisational structure for the Office of the Premier had to be revised. Due to budgetary constraints the recommended structure cannot be afforded, and the structure will be concluded in the next financial year.


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1.4 Key policy developments and legislative changes

The office ensures that it generally improves the efficiency and effectiveness of governance within the office and throughout the provincial government system.The Office of the Premier derives its mandate from the Constitution of the Republic of South Africa of 1999.

The office is responsible for:• Theimplementationofprovinciallegislationandnationallegislationwithinthefunctionalareasinschedules4

and 5 and administering national legislation outside those listed in sections 4 and 5 which have been assigned to the province in terms of an Act of Parliament;

• Developmentandimplementationofprovincialpolicy;• Coordinatingthefunctionsoftheprovincialadministrationanditsdepartments;• Preparingandinitiatingprovinciallegislation.

Key policy areas of focus derive not only from its legislative mandates but also draws heavily from the Northern Cape Provincial Growth and Development Strategy. These include, inter alia, the following:

• Providingstrategicleadershipforgrowingtheprovincialeconomy;• Ensuringthatbasicservicesaredeliveredspeedily;• Promotinggoodgovernance;• Mainstreamingtherightsofvulnerablegroupsacrossdepartmentalpolicies;• DrivetheimplementationofthePGDSandmonitorandevaluateacrosstheprovince;• Strengtheninterandintra-governmentalrelationsaswellasinternationalrelations;• Ensuringgoodfiscaldiscipline.

B.2 Strategic Outcome Oriented Goals

GOAL 1: Improved transparency and accountability through coordination, monitoring and evaluation of the Office of the Premier’s implementation of policies and providing support to the Executive Council and the Premier

GOAL 2: Objectives and targets of the Northern Cape Provincial Growth and Development Strategy progressively realized through facilitation, monitoring and provision of strategic leadership and guidance to the Provincial Administration

GOAL 3: Improved efficiency through coordinated, integrated policy development, planning and implementation of the Government Programme of Action

GOAL 4: Efficient and effective service delivery established and maintained through sound intergovernmental, inter-departmental and sectoral relations throughout the Provincial Government

GOAL 5: Improved quality of life of all citizens of the province, in particular mainstreaming issues of the vulnerable groups across all government programmes and through promotion of people-centred good governance

GOAL 6: An effective, efficient, developmental Northern Cape Provincial Government through increased service quality and access, human resource management and development, improved business processes and effective anti-corruption initiatives


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B.3 Performance Information by Programme

3.1 PROGRAMME 1: ADMINISTRATION

PURPOSE

This programme is responsible for rendering efficient management, administrative and financial support to the Executive Council, the Premier and the Office of the Premier and to monitor and evaluate departmental implementation of all policies and programmes.

SUB-PROGRAMMES

1.1 Premier Support1.2 Director General Support1.3 Security & Records Management1.4 Executive Council Support1.5 Financial Management

Strategic objectives, performance indicators, targets and actual achievements

GOAL 1: Improved transparency and accountability through coordination, monitoring and evaluation of the Office of the Premier’s implementation of policies and providing support to the Executive Council and the Premier

Strategic objectives Actual Achievement

2012/2013

Planned Target2013/2014

Actual Achievement

2013/2014

Deviation from planned target to

Actual Achievement for 2013/2014

Comment on deviations

Unqualified Audit Unqualified Audit

Unqualified Audit Unqualified Audit

None None

PROGRAMME PERFORMANCE

1.1 Premier Support

Performance Indicator Actual Achievement

2012/13

Actual performance against target 2013/14

Reason for Variances

Planned Target

Actual Achievement

Percentage of Premier’s statutory and political obligations met

98% (96 of 98) 98% (96 of 98) 98% (96 of 98) None

To fulfil her constitutional mandate, in her statutory and political obligations, the Premier honoured all her Presidential Coordinating Council, Provincial Inter-Governmental Forum, Party consultative Executive Council outreach, National and Provincial ruling party and government Lekgotlas, Sectoral, Civil society meetings.

In assistance to the Premier to fulfil the constitutional, statutory, political obligations and electoral mandate through providing effective and efficient support and, the Premier support diligently assisted the Premier in ensuring that this year’s State of the Province Address (SOPA) was an outstanding and very successful event in stature, reflecting on the good story of the Northern Cape Provincial Governments’ performance over the last twenty (20) years.


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Subsequent to the SOPA, the Premier successfully tabled the Votes budget speech, giving clear indication what the key policy priorities of the Office of the Premier were and how they were going to be funded.

Furthermore, emanating from the State of the Nation Address (SONA) and Vote 1’s budget speech, the Premier Support provided guidance and support in its central coordinating role, throughout the financial year on issues affecting the entire provincial administration on key projects and initiatives around the following key policy priority areas:

• Creatingdecentjobs• Education• Thefightagainstcrime• Womenandyouthdevelopmentissues• Infrastructuredevelopment• Health• Ruraldevelopmentandagrarianreform

The Public Participation protocol continues to be high on our agenda and this financial year the Office held a successful outreach to the John Taolo Gaetsewe District and Frances Baard Districts with support from the Cabinet Secretariat.

The Northern Cape Premiers Bursary Trust Fund continued to fund academically deserving students that form part of the scarce skills identification programme of the Provincial Government. 487 young people have received assistance through the Premiers Bursary Trust Fund; of which 159 are new students and 328 continuing students from various parts of the Province were granted bursaries to take up further study at universities, colleges and Further Education and Training (FET) Colleges for the 2013 academic year. The funding covers costs for registration, tuition and study material.

Furthermore, the Mme Reka Thusa Women’s Development Trust Fund, established to help speed up the advancement and economic development of women entrepreneurs across the province, in line with the Millennium Development Goals Objectives i.e. to half unemployment and eliminating poverty and capacitating woman with relevant skills, expertise and resources. During 2013, under the auspices of the Trust, the Premier presided over five awareness summits in all five regions of the Province reaching out to 4 185 women. After the awareness programs, thirty two (32) interest free loans had been granted to qualifying women and 35 women are being given business training which will culminate into grants for their business initiatives.

1.2 Director General Support


2012/13



Planned Target

Actual Achievement

Level of compliance with the planning framework through timeous submission of the Strategic plan, Annual Performance Plan and Budget.

100% Compliance

All Planning documents signed and submitted on the due date

All Planning documents signed and submitted on the due date

None

Number of Senior Management Team meetings where organisational performance assessments was discussed.

7 Meetings 9 Meetings 9 Meetings None


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2012/13



Planned Target

Actual Achievement

Number of Head Of Department meetings where provincial performance assessments was discussed.

16 Meetings 12 Meetings 10 Meetings (2) Head Of Departments forum could not convene due to unavailability of the Head Of Department Forum members

The office of the Director General Support continued to ensured improved provincial government operations through providing strategic coordination, logistical and committee support services to the Head of Department (HOD) structure and other sub structures of the Provincial Administration during this 2013/14 financial year under review.

The unit provided efficient and effective operational, strategic and administrative support to the Director General (DG) to enable the DG to execute statutory functions of the province such as the HOD forums, the Forum of South African Director Generals (FOSAD), the Senior Management Team (SMT) meetings, the Cluster meetings and Presidential Council meetings and ensuring that the operations of the office of the DG runs optimally.

To strengthen governance and provide strategic direction, leadership and improved service delivery, the Director General attended the following key provincial and national engagements amongst others;

• GovernanceLeadershipSummit• MunicipalFinancialManagementAct:AuditorGeneralSouthAfricaMeeting• ExecutiveCouncilMeetings• President’sCo-ordinatingCouncil(PCC)Meeting• RenewableEnergyengagementswiththeSpanishGovernment• SpecialEconomicZone• KleinzeeProject• RegionalBulkInfrastructureEngagements• Abroad–Mission–TriptoIrelandwiththePremierandentourage• Premier’sInter-GovernmentalForumMeetings• AidsCouncilSecretariatmeetingswithcivilsociety• ExecutiveCouncilOutreachProgrammesinNamakwa,HantamMunicipalities,Andriesvaleetc.• CooperativeGovernanceandTraditionalAffairs(COGTA)BudgetVote• LandsclaimMeetingsinHartswater• PANSouthAfricanLanguageBoard(SALB)/SouthAfricanBroadcastingCooperationMeetings• ProvincialEnterpriseEngagements• DepartmentalInter-GovernmentalForum(DIGF):FrancesBaard,JohnTaoloGaetseweandSiyanda

To strengthen the fight against crime and corruption, an independent anti-corruption official has been appointed in the Office of the Premier as a governance issue reporting directly to the Director General. Secondly, the Provincial Crime Prevention Strategy was launched on the 12 September 2013 in Kuruman by the Premier.

There was 100% Compliance with respect to the signing and submission of SMS Performance Agreements within the stipulated date.

To comply with corporate governance, financial disclosure forms for all senior management members of the Northern Cape government were 100% submitted on time to the Public service commission.


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To improve and provide support on audit outcomes, the Director General as the chairperson of Operation Clean Audit 2014, at an extended Inter-Governmental forum meeting, ensured that all municipalities reported audit improvement progress reports and 2013/14 approved audit improvement plans towards Operation Clean Audit 2014 objectives. AG action plans were submitted to Treasury that were consolidated for the Province and presented to HOD forum, cluster and EXCO.

As relates to HIV/AIDS, the office made presentations to all departmental senior management fora to strengthen planning frameworks on implementing HIV. Furthermore, the office launched the formation of the Interdepartmental Committee (IDC) on HIV/AIDS comprising of designated senior managers. This was important because it put the governance of HIV/AIDS at the apex of departmental planning. The IDC will further serve as technical support to the Provincial Council on AIDS.

1.3 Security & Records ManagementSUB- PROGRAMME: Security & Records Management


2012/13

Actual performance against target 2013/14 Reason for Variances

Planned Target Actual Achievement

Monitoring and report on the implementation and compliance with Records management legislation on a quarterly basis.

4 reports 4 reports 4 reports None

Monitoring the implementation of the Security policy through quarterly reports to ensure compliance


The Security and Records management unit continued to ensure that it efficiently, accounted and enhanced transparency through the implementation of sound Records Management Systems, telecommunication and messenger service in office of the Premier, thus preserving the corporate memory of the Office.

Furthermore, the unit contributed to improved productivity through provision of a safe and secure working environment.

During the year under review, the President visited the Province twice where one (1) visit was for the FETSA TLALA Project in Kuruman, and the unit attended meetings with the Department of Agriculture whereby the assistance was provided with security arrangements and other logistical arrangements. Furthermore, the unit ensured that the necessary structural engineers’ certificates were in place.

The unit also assisted in the Joint Operational Centre for the Former President, Nelson Mandela. The Ministers of Energy, Water Affairs and Communications visited the Province and the Office of the Premier was responsible for all security arrangements during these events.


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1.4 Executive Council Support


2012/13



Planned Target

Actual Achievement

Number of Executive Council (EXCO) and the Clusters engagement where support was rendered effectively

25 Meetings 24 Meetings 31 Meetings 7 MeetingsDuring the fourth quarter, the unit intensified its programmes i.e. 5 x Executive Council Meetings, Final Executive Council Outreach Programme and 1 x close out cluster and technical cluster meetings that were deemed priority as it will be the last of the current Administration in the electoral cycle.

The Executive Council Support effectively rendered quality secretariat and administrative services to the Executive Council and its Committees and outreach service to communities in the Northern Cape during the year under review.

A public meeting with the community of Dingleton and the Executive Council took place, where matters in relation to the Dingleton Resettlement Project were discussed as an intervention by the office.

The unit played a critical role with the coordination and planning of the Strategic Integrated Projects (SIPS) for the Northern Cape Provincial Government.

Other matter that the unit was also involved in amongst others was the following:• RenewableEnergyengagementswiththeSpanishGovernment• SpecialEconomicZone• KleinzeeProject• RegionalBulkInfrastructureEngagements• DistrictIntergovernmentalForummeetings

1.5 Financial Management


2012/13




Compliance with financial accounting reporting requirements and relevant accounting legislation/prescripts resulting in financial unqualified audit outcomes.

5 5 5 None


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2012/13




Effectively managed budget in line with budget guidelines and timeframes issued by provincial treasury (99% of budget spent)

97% expenditure of budget



(3%)The budget is 3% under the expected norm, as a result of due processes followed to source service providers for the relocation from Templar/Sauer project, 20 year review, etc. through tender process, RT Contractors, etc. as at 31 March 2014 the funds have already been committed through service provider appointment letters and contracts. A roll over request has been submitted to Provincial Treasury to re-allocate these funds to 2014/15 financial year.

Reduction of Non-compliance with supply chain management legislation & other relevant prescripts for the office of the Premier through monitoring and capacitating of officials.

5% of cases resolved



None

Compliance with public sector risk management framework

4 risk management report



None

No material findings on pre-determined objectives through performing quality checks on quarterly reports and annual report.


The Financial management unit ensured the effective and efficient financial management and administration of the resources of the Office of the Premier, in complying with all relevant legislation and prescripts thus achieving fiscal discipline and a healthy, transparent state of financial affairs and influencing positive audit outcomes on the financial position of the Office of the Premier.

To ensure its commitment to efficient, effective and prudent financial management of government resources, the main opinion paragraph on fairness of Annual Financial Statements (AFS), the Office of the Premier received a financially unqualified external audit report for the 2013/14 year.

The Office also received a positive report on predetermined objectives/performance information section, were the Auditor General pronounced that ‘no material findings on predetermined objectives were detected’.The unit achieved 100% statutory financial management reporting compliance with all relevant legislation and prescripts.


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The implementation of Logistical Information System (LOGIS) was successful and all officials have been trained on systems utilisation. Continuous engagement and support is being provided by the Shared Information and Financial Services of Provincial Treasury after implementation, to ensure a smooth transition for the Office of the Premier.

3.2 PROGRAMME 2: INSTITUTIONAL DEVELOPMENT

PURPOSE

The purpose of this programme is to coordinate and provide strategic leadership to all provincial departments with regards to transversal cooperate issues to enhance transformation of the public service

SUB-PROGRAMMES

2.1 Strategic Human Resources2.1.1 Human Resource Administration (HRA)2.1.2 Human Resource Development (HRD)2.1.3 Efficiency Services2.1.4 Labour Relations Unit2.1.5 Employee Health and Wellness2.2 Information Communication Technology2.3 Legal Services2.4 Communication Services2.5 Programme Support

PROGRAMME PERFORMANCE

GOAL 4: Efficient and effective service delivery established and maintained through sound intergovernmental, inter-departmental and sectoral relations throughout the Provincial GovernmentGOAL 6: An effective, efficient, developmental Northern Cape Provincial Government through increased service quality and access, human resource management and development, improved business processes and effective anti-corruption initiatives

Strategic objectives

Actual Achievement

2012/2013

Planned Target2013/2014

Actual Achievement

2013/2014

Deviation from planned target to Actual Achievement

for 2013/2014


Unit costs of key service delivery outputs

Not measured - Not measured Producing unit cost information requires knowledge of costing activities and outputs which is not readily available in the public sector. As such unit costs are rarely computed. Some department such as Office of the Premier do not have tangible deliverables and therefore it is hard to produce unit cost information

Experience has shown that an indicator of this nature is impractical to compute, as the cost of data gathering exceeds the usefulness of the indicator


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2.1 Strategic Human Resources

2.1.1 Human Resource Administration (HRA)


2012/13



Planned Target

Actual

Number of reports indicating compliance to Outcome 12 (sub-output 2 & 3)


No of reports to monitor compliance with Human Resource procedure manuals and prescripts


During the 2013/2014 financial year, the HRA directorate managed all human resource (HR) information (transactions) electronic and paper-based (Internal). The unit advised departments on HR compliance issues as the co-ordinator of the HR Forum.

As part of outcome 12, sub-output 2: HR Management and sub-output 3: PERSAL Functionality, the HRA unit improved the accuracy, reliability and integrity of the information on the system through the PERSAL Clean-up initiative. Secondly, through this initiative, the vacancy rate was reduced from 15% to 10.3%.

The unit developed two (2) Standard Operating Procedures: Recruitment and Transfers and Conditions of Service.From the internship programme of 2013/2014 four (4) interns were absorbed into permanent positions, sixteen (16) new appointment, of which three (3) are promotions from other departments to Office of The Premier (OTP), thirteen (13) officials were promoted internally on posts that were vacant and funded during the financial year.

The unit successfully implemented the Job Evaluation (JE) coordination process of clerical staff within OTP of which fifteen (15) employees were upgraded to salary level 5.

Three (3) officials were upgraded in terms of amendments of Resolutions 3 of 2009 effective from 1 August 2012.2.1.2 Human Resource Development (HRD)


2012/13



Planned Target

Actual

No. of Training and Development Reports outlining capacity development initiatives for employees to increase human capital in the Office of The Premier for improved performance.


No. of quarterly reports indicating approved departments specific Annual Human Resource Development implementation plans, Workplace Skills Plans and reports submitted to Department of Public Service and Administration (DPSA) & Public Service sector Education & Training Authority (PSETA)


No. of quarterly Performance Management Development Strategy (PMDS) monitoring reports indicating compliance with policy prescripts



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All departments submitted their HRD Implementation plans and reports, an improvement compared to last year.

In terms of Performance Management Development (PMDS), 100% Compliance with respect to the signing and submission of SMS Performance Agreements within the stipulated date.

The Office of the Premier bursary policy was reviewed and aligned with the latest HRD policy imperatives as the old policy was developed and approved in 2008.

The key highlight with regards to Outcome 12 for the period under review is that the Executive Council adopted a set of interventions aimed at strengthening the coordination and implementation of Human Resource Development Initiatives.

These interventions were the establishment of a Provincial Human Resource Development Council for the Northern Cape that will serve as a platform for all public and private sector stakeholders to engage on common matters related to human resource development, identify skills restrictions and recommending appropriate solutions to unblock such restrictions and to mobilise senior leadership in organised business, government, organised labour, civil society and professional bodies, the education and training and science technology institutions to address the provincial HRD priorities in a coordinated and targeted way.

In terms of training and placements, the unit coordinated and achieved the following;• Internally

- The office placed 5 interns on identified priority areas - 10 FET learners were place in the office on the Work Integrated Learning Programme championed by the

Department of Higher Education• Externaltransversalcoordination

- Supported the Department of Culture, Arts, Tourism, Hospitality & Sport SETA (CATHSSETA) and assisted with the placement of 29 learners on a heritage practice Learnerships.

- The placement of 157 Further Education Training (FET) learners on the Work Integrated Learning Programme in departments and municipalities throughout the province was coordinated by the HRD unit.

- Training of 47 HRD practitioners on Training of Trainers (TOT’s) and Assessor Training was coordinated by the HRD unit, to build capacity in the province for the implementation of the Compulsory Induction Programme (CIP).

- Took part in the Northern Cape Provincial Skills Consultative Workshop which was convened by the National Skills Authority (NSA), in partnership with the Provincial Skills Development Forum (PSDF) under the theme “Taking the National Skills Development Strategy to the People.” In attendance were 274 delegates comprising business, labour, and delegates from education and training sector, government and non-governmental organisations. The purpose of the consultative workshop was to ensure a creation of a platform for continued engagement and consultation with stakeholders on the National Skills Development Strategy III (NSDS) and the post school education and training systems currently sponsored by the newly released Green Paper on post school landscape on higher education and training.

To comply with outcome 4 in addressing skills shortage in the province, this office successfully co-ordinated the Riemvasmaak rural youth development project and monitored its implementation. Stakeholder meetings on the project took place in Upington to discuss the learners’ progress and way forward.


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HRD successfully coordinated the signing of a Memorandum of Understanding (MoU) with Safety and Security Sector Education and Training Authority (SASSETA) and the Office of the Premier.

Employees from the HRD unit formed part of a task team for the launch of the Local Government Sector Education Training Authority (LGSETA) office in province.

The unit attended the Transport Education Training Authority (TETA) awareness road show which resulted in an agreement that the unit will facilitate signing of MoU between Transport Education Training Authority (TETA) and Department of Safety and Liaison as well as the after exam and adopt a school projects with the department of Education.

Unit employees also attended the Wholesale and Retail (W&R) SETA certification programme and discretionary grant session where inputs were made on the role of the Sector Education Training Authority (SETA) in the Province.

2.1.3 Efficiency Services


2012/13



Planned Target Actual

Monitoring reports on the provincial departments’ level of compliance with the legislative framework on organisational design.


Monitoring reports on the departments’ level of compliance with the legislative framework on Job Evaluation and the application of EQUATE


No. Of reports compiled with regards to the implementation of the Office of The Premier Human Resource plan.


The Efficiency Services unit coordinated a departmental monitoring visit that focuses on the status of organisational design that took place during the 2013-14 financial year. The findings during these visits, as well as additional information received from departments, informed the content of the produced provincial reports in this regard. Organisational design interventions also took place within the Office of the Premier, the Department of Environment and Nature Conservation, and the Department of Health.

Guidance, facilitation, coordination and monitoring of the Implementation of Resolution 1 of 2012, relating to post previously prevented to be advertised and filled on levels 10 and 12 by Resolution 3 of 2009, was successfully provided by the unit and all the necessary cases of concurrence were referred to the Minister of Public Service and Administration. Furthermore, all compliance reports were submitted to the DPSA and all other related outstanding matters are continuously receiving attention and monitored.

The unit had engagements with departments, as well as quality assurance sittings (consisting of Preliminary quality assurance and Job Evaluation panel sittings). In ensuring provincial compliance with regard to the prescripts of Job Evaluation, eleven (11) Provincial Job Evaluation panel sittings were held during the 2013/14 financial year, to enhance provincial consistency in the application of the EQUATE grading system.


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During the 2013-14 financial year, significant inroads were made in terms of enhancing the level of human resource planning capacity provincially, as well as improving the quality of departmental strategic Human Resource plans. A provincial assessment committee, consisting of all trained Human Resource Planning officials within our provincial departments, was established during the second (2nd) quarter.

2.1.4 Labour Relations Unit

SUB- PROGRAMME: LABOUR RELATIONS


2012/13




Number of reports submitted to Department Public Service Administration and Public Service Commission on misconducts and grievances

2 Misconducts(Department Public Service Administration)

Misconducts2 (Department Public Service Administration)

0 Misconducts (Department Public Service Administration)

(2)Reports were compiled but not submitted due to lack of compliance from departments to report as a province

2 Grievances Grievances: 2 2 Grievances None

Turnaround times for Prosecuting & Presiding over Misconduct, Grievances & Disputes in months

3 Grievances Grievance–30Days

4Grievance–30Days

None

1 Misconduct Misconduct–3Months

9Misconduct–3Months

None

3 Disputes Disputes–3Months

8Disputes–3Months

None

Implementation and level of compliance with National/Provincial Labour Relations Strategy through quarterly reports

2 reports 4 reports 0 report (4)Line departments not responding timeously in terms of submission of reports

Implementation of Resolutions/Agreements from the General Public Service Sectoral Bargaining Council (GPSSBC) , Safety and Security Sectoral Bargaining Council, Public Health Social Development Sectoral Bargaining Council, Public Service Coordinating Bargaining Council and Labour Relations Forum monitored through monthly reports

4 reports 4 reports 1 report (3) reportsNo agreement was signed during this period under review

The Labour Relations unit ensured that there was sound labour relations and industrial stability through effective Dispute Management, Collective Bargaining and support to the Office of the Premier and Provincial Departments.The unit facilitated training for twenty (20) employees which covered areas of effective management of presiding over cases.

Labour Relations successfully hosted the National Labour Relations Forum, and attended all National Labour Relations Forums and employer courses organised by the Department of Public Service and Administration.


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Through the units’ initiative, the Department of Public Service and Administration (DPSA) presented the Case Management System at the Head of Department Forum, which will ensure for the registration of all cases on a centralised database. This will effectively allow the Office of the Premier access to all cases registered in different Provincial Departments and integrate coordination, reporting, monitoring and evaluation.

2.1.5 Employee Health and Wellness


2012/13



Planned Target

Actual

Number of strategic and operational plans with HIV, TB and Gender and Rights based dimension mainstreamed and operational

6 reports 10 Reports 10 Reports1 None

Number of departments monitored for compliance with guidelines and legislation related to Human Rights on HIV, TB and Gender.


Number of health and safety departmental compliance reports.


The Employee Health and Wellness Unit continued to make a concerted effort on the implementation of the HIV, TB and STI Management of the National Strategic Plan (NSP) and Employee Health and Wellness Strategic Framework, through interventions in the form of workshops, presentations and planning sessions with individual departments.

This assisted ten (10) departments i.e. Department of Education, Roads & Public Works, Office of the Premier, Department of Health, Department of Co-operative Governance, Human Settlements & Traditional Affairs, Department of Sports, Arts & Culture, Department of Agriculture, Land Reform & Rural Development, Department of Social Development, Provincial Treasury and Department of Economic Development and Tourism to comply with the standards set out by the Management Performance Assessment Tool (MPAT).

As a minimum, departments submitted costed, signed operational plans for their Employee Health and Wellness that are HIV, TB and Gender sensitive which are Rights based and mainstreamed.

As an intervention to mainstream HIV and TB into departmental core mandates, the Office of the Premier supported the following departments (Department of Sport, Arts & Culture; Department of Environment and Nature Conservation; Department of Health; Department of Roads and Public Works; Provincial Treasury; Office of the Premier; Department of Cooperative Governance, Human Settlements and Traditional Affairs) to align and develop gender-sensitive and rights-based HIV/AIDS and TB mainstreamed policies.

1 Department of Education, Roads & Public Works, Office of the Premier, Department of Health, Department of Co-operative Governance, Human Settlements & Traditional Affairs, Department of Sports, Arts & Culture, Department of Agriculture, Land Reform & Rural Development, Department of Social Development, Provincial Treasury and Department of Economic Development and Tourism.

2 Department of Education, Roads & Public Works, Office of the Premier, Department of Health, Department of Co-operative Governance, Human Settlements & Traditional Affairs, Department of Sports, Arts & Culture, Department of Agriculture, Land Reform & Rural Development, Department of Social Development, Provincial Treasury and Department of Environment & Nature Conservation.

3 Department of Education, Roads & Public Works, Office of the Premier, Department of Health, Department of Co-operative Governance, Human Settlements & Traditional Affairs, Department of Sports, Arts & Culture, Department of Agriculture, Land Reform & Rural Development, Department of Social Development, Provincial Treasury and Department of Environment and Nature Conservation.


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To ensure that everyone in South Africa is voluntarily tested for HIV and screened for TB every year, the Office of the Premier partnered with various provincial departments (Department of Sport, Arts & Culture; Department of Environment and Nature Conservation; Department of Health; Department of Roads and Public Works; Provincial Treasury; Office of the Premier; Department of Cooperative Governance, Human Settlements and Traditional Affairs) as well as GEMS and other external partners to provide a comprehensive package of health screening services.

In collaboration with GEMS, the unit hosted a Northern Cape Administration interdepartmental Health and Services Open day in Upington. This day afforded public servants in the hinterland of our province an opportunity to access a wide range of services.

The implementation of Safety, Health, Environment, Risk and Quality Management (SHERQ) was effectively monitored in the following departments (Department of Sport, Arts & Culture, Department of Environment and Nature Conservation, Department of Health, Department of Roads and Public Works, Provincial Treasury, Office of the Premier, and Department of Cooperative Governance, Human Settlements and Traditional Affairs).

Periodic reporting on key programme implementation in provincial departments has enabled the Office of the Premier to respond with appropriate support and technical interventions. This is evident from the reports that the unit managed to collect, collate and develop during the period.

2.2 Information Communication Technology


2012/13




Province-wide Information Technology Plan and its implementation monitored

1 Plan Approved 1 Plan Approved 1 Plan Approved None

Monitor State Information Technology Agency (SITA) Service Level Agreement (SLA)

99% Connectivity

95% connectivity 97.74% connectivity

2.74% Positive variance as a result of improved efficiencies on the side of SITA

A Provincially adopted Second Generation Thusong Service Centre Plan

1 Draft 1 Plan approved 1 draft plan (1) draft plan2nd Generation Business Plan was sent to the relevant Forums for approval, feedback awaited.

The number of Memorandum of Agreement signed with Municipalities

1 1 1 None

Turnaround time in days it took to resolve issues logged through the helpdesk

7 Days 8 Days 0.9 days 7.1 daysImproved turnaround to provide support services to users and other departments

During the financial year 2013/14 under review, the Information Communication Technology (ICT) unit continued to provide technical support, web services, advisory services to provincial departments and technical support function to finance’s supply chain management section for the procurement of IT goods and services.


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The unit has developed and started the implementation of the Corporate Governance of ICT Framework.

The Provincial Internal Audit Unit found that the “overall management of Information Technology Governance within Office of the Premier is in line with nationally set goals and objectives”.

Support was also given to Thusong Service Centre Programmes in the Province, and recorded approximately 165,175 transactions for the period under review.

Easy access to Thusong Service Centres has been made available by the unit and the office of the Premier to traditional service points.

The types of services that were accessed through the Thusong Service Centres; include amongst others municipal services, including payments, Department of Home Affairs, Department of Labour, and South African Social Services Agency.

2.3 Legal Services


2012/13




Number of reports submitted to the Premier on legal services rendered.

4 Reports 4 Reports 4 Reports None

Number of reports submitted to the Premier on legislation.


Number of reports submitted to the Premier on compliance with Outcome 12 (Promotion of Access to Justice Act & Promotion of Access to Information Act)


The unit rendered comprehensive, coordinated legal advisory service to the Northern Cape Provincial Government and Local Government with regard to contracts, litigation, drafting and certification of legislation and legal opinions to ensure compliance with the law.

CONTRACTS

BIODIVERSITY CONTRACT/AGREEMENT

The unit was involved in the drafting and negotiations of the Biodiversity Offset Agreement which has no precedent within the Republic and which when fully implemented would pave the way forward to ensure an equivalent or better biodiversity outcome to the effected sites where biodiversity may be lost due to impacts that may be caused by mining operations.

These mining operations are to be undertaken by the Black Mountain Mining company on its various landholdings in and around Aggeneys, Northern Cape Province. Additional sites are also to be acquired to give effect to the Biodiversity Offset Agreement.

This Biodiversity Offset Agreement has indeed solicited a lot of interest judging from the recent Inter-Provincial State Law Advisors Forum where participants were eager to be assisted by the Northern Cape Province for similar agreements within their own jurisdictions.


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SISHEN IRON ORE COMPANY PTY (LTD) / NORTHERN CAPE PROVINCIAL ADMINISTRATIONRELOCATION OF DINGLETON

The unit monitored Legal Compliance issues with regard to this agreement which was ultimately signed in June 2013 by the parties. The model on which the relocation of Dingleton is structured i.e. International Finance Corporation Standard 5 was considered one of the best models by Provincial State Law Advisors during a meeting held on 27-28 March 2014 in Rustenburg which can be used by other provinces.

LITIGATION There has been a drastic reduction in new cases. A large number of cases that are pending have been carried over from previous years.

One matter that requires specific mention is Lourens vs. Premier in which an order was sought compelling the Premier to come up with legislation to regulate the use of official language in the province. The matter has since been settled and a new legislation called Northern Cape Use of Official Language Act has been passed.

This is a positive achievement in that litigation that arises out of non-compliance with legal prescripts has been reduced in line with our strategic objectives.

DOIGE & OTHERS: TRANSFER OF THE ASBESTOS RELIEF TRUST / MASTER OF THE NORTH GAUTENG HIGH COURT & PREMIER OF THE NORTHERN CAPE PROVINCE

The unit managed to persuade/convince the Master to release documents of the Asbestos Relief Trust to the Premier in order for the Premier to determine whether the complaints raised by the asbestos affected communities in Kuruman are against Spoor / Trustees. The trustees have since lost an application to interdict the Master from releasing the documents as agreed and also lodge an application to review the decision of the Master. The matter is still pending in the North Gauteng high Court.

LEGISLATION

The following legislation drafting and certification has been assented to by the Premier;• NorthernCapeGeneralLawsAmendmentAct–Assentedto23July2013• NorthernCapeAppropriationAct–Assentedto21June2013• NorthernCapeLegislatureWitnessAct–AssentedtoNovember2013• NorthernCapeRepealofLawsAct–AssentedtoNov2013(nodateonlyMonth)• NorthernCapeUseofOfficialLanguagesAct-Assentedto20February2014• NorthernCapeAdjustmentAppropriationAct–Assentedto15November2013• NorthernCapeProvincialArchivesAct–Assentedto20February2014• NorthernCapeArts&CultureCouncilAct–Assentedto20February2014• NorthernCapeHeritageResourcesAuthorityAct-Assentedto20February2014

REMUNERATIVE WORK OUTSIDE THE PUBLIC SERVICE POLICY

The department has drafted a policy in order to give effect to section 30 of the Public Service Act which prohibits public servants from performing Remunerative Work Outside of the Public Service without the requisite permission from the executing Authority. The policy has been approved and is in full operation and binding on all public servants in the office of the Premier.


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PROMOTION OF ADMINITRATIVE JUSTICE ACT

In our continued effort to ensure good governance, a training session on Promotion of Administrative Justice Act (PAJA) was arranged for Heads of Departments and Senior Managers to ensure that decisions of government are lawful, reasonable and procedurally fair.

The department in collaboration with the department of Justice and Constitutional Development developed a guide for the implementation of PAJA.

2.4 Communication Services


2012/13




A provincial communications framework and communications system developed and approved

Draft Review Approved Document

Review Approved Document

None

Communicate Government initiatives and inform the public on critical decisions that affect them on a monthly basis.

55 times 40 times 80 times 40 timesMore government work has been communicated than initially planned as a result of the implementation of the provincial government wide communication strategy.

A key aspect of the work of this unit during the year under review was communication linked to Output 12 of the outcomes based performance model. This included work done in the drafting of the Provincial Communication Strategy, media liaison, production of media adverts and events management services.

Key communication activities included follow up and resolving queries received through the Presidential Hotline, the Communications Directorate serves as an interface between the various Government Departments and Municipalities. This led us to achieving a 100% reporting rate and receiving a commendation from the Presidency.

The unit also served as a support in providing content pertaining to the office and other provincial departments for the update of the website. The unit also played a critical role in collecting content and drafting of speeches.

The unit was also responsible for strategically managing the media and utilising it to communicate government messages and programmes as well as supporting the Premier in all her media activities. Support was also rendered to the provincial government in all its activities and functions.

To ensure a healthy relationship between the provincial government and the media the unit arranged regular media briefings to deepen the understanding of the media on certain policies and pronouncements. Daily media monitoring takes place to allow the unit to respond intelligently and rapidly to issues that affect the provincial government. The unit drove Communications programme during the Budget Speeches of the various votes by getting Departments to broadcast the event live on all community radio stations as well as do summaries in the local newspapers and radio interviews to unpack the speech. The unit also held a successful media breakfast with the Premier as an introduction to the media and also to discuss her plans as outlined in her Inaugural address and Budget speeches.


39

The unit also makes use of Information Communication Technology to communicate Government programmes and messages to the Public. They therefore provide content management support to the web programmers.

The unit served on various Departmental Task teams such as the Premier’s Service Excellence Awards, Moral Regeneration; interdepartmentally on task teams responsible for Commemorative Days and on those of National Government that celebrate national days so as to provide a strategic communications support function.

The unit also assisted with:• NationalDisabilityMonthLaunch• 16DaysofActivism• WorldAIDSDay• Children’sDay• FreedomDay• YouthDay• Women’sDay• HeritageDay,and• ProvincialStudentFinancialAidbodywithcareerexhibitionsinallfivedistricts

Assistance in terms of speech compilation and translating, photograph and media services as well as communications support to Africa Public Service Day and monthly programme.

The Unit also supported the Department of Cooperative Governance, Human Settlements and Traditional Affairs (COGHSTA) with the launch of Lerato Park Housing Project, Department of Agriculture with the launch of Fetsa Tlala Integrated Food Production Initiative and the launch of infrastructure projects at the Kgalagadi Manganese Mine.

The unit was seconded to attend a first discussion workshop on the Medium Term Strategic Framework (MTSF) Outcome 14 called by the National Department of Arts and Culture.

A highlight for the Communications Directorate was the support given to the Provincial Crime Prevention Strategy in John Taolo Gaetsewe District, the Sol Plaatje University Launch in Kimberley and the successful New Age (TNA) business briefing on Morning Live and ground-breaking work that started on the Nation @ Work TV Programme as well as the National campaign of the 5.6 million house electrification project. Support was also given to the Renosterberg Renewable energy project. The unit was also central in arranging the memorial service and all other activities related to the passing of the former State President. Support was also given to the SABC 2 Morning Live with the elections broadcast from Droogfontein solar Farm.

The unit supported Cooperative Governance Human Settlements and Traditional Affairs with the launch of a housing project in Jan Kempdorp and the National Department of Transport with the launch of the Warrenton Bridge, and Department of Sport, Arts and Culture on initial discussions on the celebration of Freedom Day and the 20 Year Celebrations.


40

2.5 Programme Support


2012/13



Planned Target

Actual

Outcome 12 (All four sub-outputs) implementation managed and coordinated through the implementation forum and the Governance & Administration Cluster


To support the Director General by ensuring all planning instruments are in place and implemented in Units under the Deputy Director-General’s management by developing implementation reports


In providing support to the units under programme 2, the unit ensured that an effective and efficient developmental provincial government through administrative as well as provision of management support through its Governance & Administration, branch, Executive council makgotla, Head of Department (HOD), Senior Management Team (SMT) and Premier Inter-governmental Forum (PIGF) meetings.

In relation to Outcome 12 (All four sub-outputs) implementation managed and coordinated through the implementation forum and the Governance & Administration Cluster; The Governance and Administration Cluster Report was developed and presented to the Extended Executive Council Lekgotla on the 19th March 2014.

The report was subsequently adopted as a Resolution of the Executive Council. The Report highlights the progress made between 2009 and 2014 with regards to the implementation of Government’s Five year medium Term Strategic framework,withspecialfocusonoutcomes12and9ofan“efficient,effectiveandDevelopment–orientedPublicService” as well as ‘A Responsive, Accountable Effective and Efficient Local Government System.’

The report highlights inter alias the following:• By31December2013about177482householdsintheNorthernCapehadaccesstowater,whichis93.6%• Householdswithaccesstobasiclevelofelectricityis82%,whichis141488HouseholdsintheProvince• 160000households,whichis79.9%wereprovidedwithbasicsanitation• 91232ofHouseholds,whichis64%,hadaccesstorefuseremoval.• Compliance with regards to the signing of Performance Agreements by Senior Management across the

Provincial departments significantly increased from 50.5% in 2010 to 90.7% during 2013/14.• Thevacancyrateacrosstheprovincehasprogressivelyimprovedfromanaverageof17%in2011to14%in

2013.• Theaverageperiod(9months)takentofillvacancieswithinthePublicServicehasbeenreducedtoabout3.9

Months between 2009 and 2014.

The unit continued to coordinate the processes related to the Repositioning of the Public service in the Northern Cape. This project is being driven at a national level from the Department of Public Service and Administration. The project is essentially a Research Project aimed at Repositioning the Public Service for a developmental state. The Research Project is premised on four pillars of which one is to professionalise the public service.


41

Progress made during the period under review includes the following amongst others:• TheestablishmentofaProvincialhumanResourceDevelopmentCouncilfortheNorthernCapethatwillserve

as a platform for all public and private sector stakeholders to engage on common matters related to human resource development;

• TheestablishmentofaProvincialPublicServiceAcademyinlinewiththeenvisagedSchoolofGovernmentmooted by the national Department of Public Service and Administration;

• Themerger of theMunicipal Training Institute with the proposed Provincial Training Academy to ensureseamless training across the provincial and local spheres of government;

• InadditiontheOfficeofthePremierhasfinalised itsAnnualAdjustedHumanResourcePlanfortheperiod2013/14 to ensure that the Department has well-coordinated and focused approach to Human Resource Development.

3.3 PROGRAMME 3: POLICY AND GOVERNANCE

PURPOSE

The purpose of this program is to strategically manage policies and strategies towards the achievement of sustainable provincial growth and development and monitoring and evaluation of Government Programme of Action.

SUB-PROGRAMMES3.1 Intergovernmental Relations; International Relations; Official Development Assistance; & Protocol

3.2 Special ProgrammesThe Special Programmes unit continue to ensure that an enabling environment, advancement and socio-economic development for women, children and persons with disabilities is created in the Northern Cape by successfully transforming public service in the Northern Cape to be in line with the set Batho Pele principles and also certifying that protection and promotion of human dignity, equality, freedom for women, children, persons with disabilities and Moral Regeneration Movement (MRM) and Transformation are placed on the Provincial Agenda.

3.3 Provincial Policy Management3.3.1 Policy Coordination, Research and Development3.3.2 Development Planning3.3.3 Monitoring & Evaluation

3.4. Programme support


42

PROGRAMME PERFORMANCEGOAL 2: Objectives and targets of the Northern Cape Provincial Growth and Development Strategy progressively realized through facilitation, monitoring and provision of strategic leadership and guidance to the Provincial Administration GOAL 3: Improved efficiency through coordinated, integrated policy development, planning and implementation of the Government Programme of Action GOAL 5: Improved quality of life of all citizens of the province, in particular mainstreaming issues of the vulnerable groups across all government programmes and through promotion of people-centred good governance

Strategic objectives Actual Achievement

2012/2013

Planned Target

2013/2014

Actual Achievement

2013/2014

Deviation from planned

target to Actual Achievement for

2013/2014


Number of coordinated; integrated planning and reporting instruments

Not measured Develop a province-wide reporting system

The PIMS system went operational in March 2014, and it will be populated with indicators based on the NDP, new MTSF and other sources

None

Percentage of people living in poverty

None

Number of participants in programmes aimed at benefiting vulnerable groups whose lives have been improved

Not Measured Not Measured This indicator proved to be too vague and it need to be improved

Experience has shown that an indicator of this nature is impractical to compute, as the cost of data gathering exceeds the usefulness of the indicator

3.1 Intergovernmental Relations; International Relations; Official Development Assistance; & ProtocolSUB- PROGRAMME: Inter-governmental Relations


2012/13




Approved Provincial Inter Governmental Relations Framework Document.

Draft 1 0 (1)Approval of the Premier’s Intergovernmental Forum Document due to outstanding consultation process with John Taolo Gaetsewe district Intergovernmental forum.

Quarterly Report on effectiveness of Departmental Inter-Governmental Forum DIGF and Premier’s Inter-governmental Forum (PIGF)

0 3 Quarterly Departmental Inter-Governmental Forum (DIGF) Reports.

3 Quarterly Departmental Inter-Governmental Forum (DIGF) Reports.

None

Provincial Database on International Relations (IR) Agreement & Activities developed.

1 Provincial database

1 1 None


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SUB- PROGRAMME: Inter-governmental Relations


2012/13




Drafting of quarterly reports on Intergovernmental Relations activities

3 reports 4 quarterly reports on Intergovernmental Relations activities

3 quarterly reports on Intergovernmental Relations activities

(1)No report was submitted as there were no Intergovernmental Relations activities during the second quarter.

Mid-term Evaluation of Prov. Official Development Assistance (ODA) commitments.

2 reports 2 mid-term Prov. Official Development Assistance (ODA) reports.

0 (2)Provincial ODA reports are work in progress

Develop Quarterly Protocol report on all government activities.

4 reports 4 Quarterly provincial protocol reports.

3 Quarterly provincial protocol reports.

(1)During the first quarter the reporting on protocol was work in progress.

The unit is responsible for Protocol, International Relations and Donor Funding, Inter-Governmental relations.

The target for Protocol achievements for the year 2013 -2014 was 11 major events for the year, assisting with 20 events.The Unit also facilitated two (2) inbound International Relations (IR) activities (i.e. Consular General of India and China for meetings with Premier; and the latter included meetings with Executive Mayors of Sol Plaatje and Khara HaisMunicipalities.)andseven (7)outbound IRactivities to Italy (Officeof thePremier–SolarEnergy);Singapore(Education);Kenya;Ghana;TanzaniaandSenegal(OfficeofthePremier–RobbenIsland)VisittoChinabySolPlaatjeMunicipality.

We would like to highlight 11 big Protocol events to the Province as:• StateoftheProvinceAddressandLuncheon• ThelaunchofKgalagadiManganeseProject• TheNationallaunchofFetsaTlalaProgram• TheNewAgeBreakfastshow.• TheLaunchofSolPlaatjeUniversity• ThelaunchofCrimePreventionStrategy• KimberleyDiamondCupInternationalSkateboardingCompetition• PremiersExcellenceAwards• ConsularGeneralofIndia’svisit• RoyalBafokengQueenMothervisit• ProvincialMemorialserviceofthelateformerpresidentMrNelsonMandela


44

3.2 Special ProgrammesPerformance Indicator Actual

Achievement 2012/13




An integrated Mainstreaming for Special Programmes (Children’s Rights, Disability, Gender and Women)

New Indicator An Approved Strategy

0 (1)Mainstreaming framework not yet finalized, unit still consulting with departments.

Quarterly monitoring reports on the implementation of the Employment Equity Plan


Number of Thusong Service Centre orientated (workshops and information sessions) on the Principles of Batho Pele

2 workshops 3 Workshops & Information Sessions

4 Workshops & Information Sessions

1 Workshop & Information Session–1 Thusong centre was visited though not on the planned programme

Quarterly assessment reports on the mainstreaming of Moral Regeneration Movement


Other matter that the unit was involved in amongst others was the following:

Participated in the National Department of Social Development commemoration of the International Day against Abuse and Illicit Drug Trafficking held in Kimberley.

Moral Regeneration Movement partnered with Business against Crime & the Religious Sector in conducting a prayer service for former President Nelson Mandela.

The Office of the Premier hosted a Women’s Seminar; part of the program was for the women from the office of the Premier to empower disadvantaged women/teenage girls by donating sanitary towels which were an entrance fee to the seminar. In partnership with the Department of Education, a total amount of 132 sanitary towels were presented to a farm school GN Pressly Intermediate. A presentation on Puberty by MRM was also conducted.

Successfully hosted and coordinated key events such as the Africa Day celebrations, Women’s Day, Children’s Day, People with disability Day, 16 Days of activism against Women and Child Violence, Youth Day and the Premier’s Service Excellence Awards, where the Premier gave key note addresses to give impetus to the importance of these celebrations in line with the vision and policy priorities of National and Provincial Government.

The unit conducted a diversity and change management training session with //Khara Hais Municipality.

Progress reports were compiled by the unit, stating that a women representation on Senior Management System (SMS) level was on 46% and representation for persons with disabilities was on 2.02% in February 2014.

The Women Empowerment and Gender Equality (WEGE) Bill consultative process held in Cape Town was attended by 30 women from our province to engage and participate in discussions. The objective of the consultation process was to present the WEGE Bill to all participants, sensitise awareness on the content of the Bill, educate stakeholders on the Bill and solicit further comments and inputs.


45

3.3 Provincial Policy Management

3.3.1 Policy Coordination, Research and DevelopmentPerformance Indicator Actual

Achievement 2012/13



Planned Target

Actual Achievement

Number of transversal policies coordinated to ensure uniformity and compliance.

23 Policies 4 Policies 0 (4) Policies Poor attendance of meetings affected the development of Policies

Reports on policy compliance, uniformity and review produced.

2 reports 4 reports 2 reports (2) reportsPolicy procedure template developed and circulated to all departments and no responses were received from departments in the first quarter. A list of Policies and Procedures was sent to departments during the third quarter, and only one department response was received.

Research conducted to establish impact of public policies.

1 research paper 2 research papers

0 (2) research papersThe unit was unable to conclude the last milestone in the research on PLAS due to the late response from the Department of Rural Development on the Project Officers availability and dates of visits to beneficiaries.

Annual Performance plan document aligned to reporting guidelines and policy directives reviewed annually.

1 1 1 None

Verification of quarterly reports and annual report to be submitted by due date to Treasury and the Legislature

New indicator 4 quarterly +1 annual

4 quarterly +1 annual

None

Credible monitoring reports on the implementation of the Annual Performance Plan tabled at governance structures.


The Policy coordination, research and development unit ensured that integrated policy for the provincial administration functions are performed effectively in the Northern Cape Provincial Administration and the Office of the Premier.

Continuous intervention was done on implementing the Annual Performance Plan of Office of The Premier and the review thereof.

The unit has further successfully improved accountability through the establishment and maintenance of integrated planning and reporting mechanisms for the Office of the Premier.


46

3.3.2 Development PlanningPerformance Indicator Actual

Achievement 2012/13




Number of instances where assistance was provided to municipalities in the development of spatial development frameworks.

8 7 64 (1)Due to the intensified priority projects programmes the unit had to attend to.

Number of assistances provided in the development of Integrated Development Plans through physical visits or other mechanisms

14 9 115 2As a result of presentations done at Head of Department Forum and Economic Cluster & Executive Council regarding Integrated Development Plans which informs the other two mechanisms.

% of provincial sector departments supported in the alignment of their Annual Performance Plans with Integrated Development Plans , National Spatial Development Perspective, Provincial Spatial Development Framework, Programme of Action and Provincial Growth Development Strategy

50%(6/12) 100% (12/12) 100% (12/12) 6 None

Number of meetings convened for co-ordination of strategic projects through project working groups

New indicator 8 meetings convened

8 meetings convened

None

Number of Planning sessions convened with sector Departments, Municipalities and other stakeholders

New indicator 4 Planning sessions convened

5 Planning sessions convened

1There was a need to improve the quality of reports to convene a planning session in the Executive Council Lekgotla.

The unit provided leadership and support to all structures to contribute towards the achievement of the development targets set in the Provincial Growth and Development Strategy (PGDS) and ensured improved spatial and economic planning though the harmonisation and alignment of the National Spatial Development Framework (NSDP), PGDS, Spatial Development Framework (SDFs), Provincial Spatial Development Framework (PSDF) and Integrated Development Plan (IDPs).

4 Frances Baard District Municipality, Khara Hais Local Municipality, Phokwane Local Municipality, Pixley Ka Seme District Municipality, Kheis Local Municipality and Namakhoi Local Municipality.

5 Magareng Local Municipality, Kamiesberg Local Municipality, Ubuntu Local Municipality, Umsobomvu Local Municipality, Kamiesberg Municipality, John Taolo Gaetsewe, Joe Morolong Municipality, Gasegonyana Municipality, Gamagara Municipality, Head of Department Forum and Economic Cluster and Executive Council.

6 Department of Education, Roads & Public Works, Office of the Premier, Department of Health, Department of Co-operative Governance, Human Settlements & Traditional Affairs, Department of Sports, Arts & Culture, Department of Agriculture, Land Reform & Rural Development, Department of Social Development, Provincial Treasury and Department of Environment and Nature Conservation, Department of Transport, Safety and Liaison and Department of Economic Development and Tourism.


47

The unit played a pivotal role in the development of the Northern Cape Provincial Spatial Development Framework (NCPSDF), and the Spatial Planning Land Use Management Bill (SPLUMB).

3.3.3 Monitoring & Evaluation Performance Indicator Actual

Achievement 2012/13




Number of advisory services provided and supported on the implementation of Monitoring and Evaluation Frameworks and plan in all departments and municipalities.

New indicator 12 11 (1) Monitoring and Evaluation forum meeting: 12 March 2014 did not sit due to lack of a quorum

To manage and oversee the implementation of the Outcome Based Priorities through the provincial nerve centre.

New indicator 5 5 None

Number of Coordinated, executed and monitored Performance Evaluations and Impact Studies on Service Delivery, Programme Performance and Policy implementation

New indicator 4 4 None

Number Coordinated Monitored and Reports on the implementation of Management Performance Assessment Tool (MPAT) and assistance provided to departments to implement their MPAT improvement plans.

4 reports 4 Reports 4 Reports None

Number of programmes, service delivery site visits Monitored and Reports on frontline service delivery as well as follow reports on the implementation of recommendations.

0 40 site visits 58 site visits 7 and 1 Frontline Service Delivery Programme for 2014/15

18 site visits

The Monitoring and Evaluation unit ensured that the Premier and the Executive Council can effectively and efficiently utilize quality data to track performance of the provincial government and support service delivery initiatives and interventions.

The unit has successfully coordinated the following amongst others;• FrontlineServiceDelivery(FSD)monitoringprogrammeintheprovince.• ManagementPerformanceAssessmentTool(MPAT)intheadministration

7 Springbok SASSA Offices, Springbok Home Affairs, Nama-Khoi drivers licence testing centre, Nama-Khoi Municipal Customer Care Centre-Steinkopf, Steinkopf Community Safety Centre, Theron High School-Britstown, Britstown Primary Health Centre, Jan-Kempdorp Primary and Community Health Centre, Kgomotso High School Pampierstad, Jan Witbooi Primary Health Care, Langberg High School, SASSA Kakamas, Community Service Centre- South African Police Service Kakamas, De Aar Magistrates Court, Kimberley Family Law Court, Tshwaragano Hospital, Augrabies Municipal Customer Care Centre, Nababeep Combined school, Nababeep High School, Springbok Magistrate Court, Tshwaragano Community Health Care, Nababeep Primary Health Centre, Kimberley Hospital Complex, Greenpoint Primary Health Care, Britstown Clinic, SASSA-Barkly West, Manne Dipico MPCC, Lopeng Clinic, Mothibistad Drivers Licence Testing Centre, Tsineng CSC, Sol Plaatje Drivers Licence Testing Centre, Witdom CSC, Pabalelo High School, Betty Gaetsewe Primary Health Centre


48

The unit visited 58 sites viz. (Springbok SASSA Offices, Springbok Home Affairs, Nama-Khoi drivers licence testing centre, Nama-Khoi Municipal Customer Care Centre-Steinkopf, Steinkopf Community Safety Centre, Theron High School-Britstown, Britstown Primary Health Centre, Jan-Kempdorp Primary and Community Health Centre, Kgomotso High School Pampierstad, Jan Witbooi Primary Health Care, Langberg High School, SASSA Kakamas, Community Service Centre- South African Police Service Kakamas, De Aar Magistrates Court, Kimberley Family Law Court, Tshwaragano Hospital, Augrabies Municipal Customer Care Centre, Nababeep Combined school, Nababeep High School, Springbok Magistrate Court, Tshwaragano Community Health Care, Nababeep Primary Health Centre, Kimberley Hospital Complex, Greenpoint Primary Health Care, Britstown Clinic, SASSA-Barkly West, Manne Dipico MPCC, Lopeng Clinic, Mothibistad Drivers Licence Testing Centre, Tsineng CSC, Sol Plaatje Drivers Licence Testing Centre, Witdom CSC, Pabalelo High School, Betty Gaetsewe Primary Health Centre) and reviewed them and also had feedback sessions and a performance improvement plan put in place to address performance weaknesses identified on Frontline Service Delivery Programmes.

Frontline Service Delivery Monitoring (FSDM) entails announced and unannounced visitations to service delivery sites to monitor the level of services offered at identified sites. During the given financial year, 16 baseline site visits were conducted, 16 feedback and 27 improvement monitoring site visits were undertaken. The visits are carried out in partnership with the Department of Performance Monitoring and Evaluation in the Presidency (DPME) and continue to register desired improvements in service levels.

The unit successfully coordinated the launch and implementation of version 1.3 of the Management Performance Assessment Tool (MPAT) in the provincial administration, aimed at progressively improving management practices in the public service. The instrument has been successfully institutionalized in the provincial administration and continues to register improved compliance with regulations and legislative prescripts. Improvement plans monitoring were periodically conducted.

In terms of the coordination and implementation of the 12 outcomes, the unit participated in the departmental launches of the Technical Implementation forums; the Strategic Annual Performance Plans review sessions and various other platforms to deepen M&E practices in organizations.

Participated in provincial and national monitoring and evaluation activities e.g. M&E Forums; War on Poverty meetings and Learning Network sessions etc.

The unit provided guidance and support to departments on the development and alignment of strategic Plans and Annual Performance Plans to the NDP and MTSF Priorities.

The Terms of Reference for the M&E Forum finalized and approved.

The unit conducted three (3) desktop evaluations (i.e. Kimberley Diamond Jewellery Association, Social Relief and Food Provision and Lerato Park) on programmes identified by departments, two (2) of which have been successfully completed and Lerato Park is still to be finalised.

The Evaluation Plan is also completed, although because of protocol structures, it will be implemented in the 2014-15 financial year.

The unit continued to implement the electronic M&E system in the administration as well as to provide related training to ensure its successful implementation and proper utilization.


49

3.4. Programme support


2012/13




Management of Office of the Premier’s strategic planning processes and management of units within component through quarterly reports

New indicator 1 Annual Performance Plan Review Session

1 Annual Performance Plan signed off.

Quarterly meetings with all components with the Branch

1 Annual Performance Plan Review Session

Approved Annual Performance Plan signed off

3 Quarterly meetings with all components with the Branch

None

None

(1)Due to poor attendance the fourth quarter meeting did not take place.

Quarterly government assessment reports produced by the Provincial Nerve Centre to improve monitoring and evaluation

New indicator A functional Provincial Nerve Centre in place capable of providing and extracting various reports as and when required.

Quarterly government assessment reports

Nerve CentreFunctional and operational

3 Quarterly Government Assessment Reports + coordinating the consolidation of a draft 20 year Review Report

None

None

Service Delivery Improvement Plans, Service Standards and Charters and Batho Pele institutionalization implementation monitored through quarterly reports

New indicator 4 reports generated 4 reports generated None

Hold bi- monthly meetings to enhance the policy development, review, research environment and provide leadership and guidance to the work of special programmes

New indicator 6 bi-monthly meetings to be held

2 bi-monthly meetings held

(4)Meetings could not take place due to intensified priority projects that were scheduled.

The unit continued to ensure improved efficiency of programme operations through providing strategic leadership, coordination and rendering support to components within the programme, through its Governance & administration, branch, Senior Management Team (SMT), Head Of Department (HOD), Premier’s Inter-governmental Forum (PIGF), Technical implementation forum meetings.


50

The programme played a critical role with the coordination and planning of the Strategic Integrated Projects (SIPS) for the Northern Cape Provincial Government, viz. the new University Steering Project Committee, engagement with mines with regards to John Taolo Gaetsewe Development, Solar Energy in Upington and Square Kilometre Array (SKA) Site Visit and others.

As part of the overseeing functions, the Office facilitated the Energy and Water Sector Education and Training Authority service level Agreement that was signed to provide funding for the Renewable Energy in the Province and also facilitated the proposal for appointment of a Project leader for the Northern Cape Renewable Energy Sonar Energy Zone Project Steering Committee. The signing of the Memorandum of Understanding between the Communal Property Association and Buckland’s Community Development Trust also took place.

In line with ensuring service delivery at a local level, a total of seventeen (17) municipalities were visited with the purpose to check the status and institutionalization of Batho Pele in the Municipalities, to gather information around challenges on access to services, to identify officials assigned with the responsibility of dealing with Batho Pele, to popularize the customer care workshop, and to do follow-ups on issues on Service Standards and Charters at all Municipalities.

Furthermore, in line with the assessment of government performance, the office has a functional Nerve Centre which is capable of providing and extracting various reports as and when required. 3 assessment reports were produced to improve monitoring and evaluation and the programme coordinated the consolidation of a draft 20 years Review Report

3.4 Strategy to overcome areas of under performance

All units are required to submit quarterly assessments of their performance. They must also submit documentary proof of achievements. Any deviation must be explained. The relevant supervisors will then have follow-up discussions with unit heads where there is a risk of under-performance.

Where there is a significant probability of underperformance, these risks are elevated to the risk plan where it is monitored as part of the risk management strategy.

Of the 75 targets 57 were achieved, while 9 were over-achieved. The strategy outlined above will assure that we also will achieve the 18 targets that were partially achieved in this cycle.


51

3.5

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52

Prog

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53

3.6 Linking performance with budgets Sub- Programme

Name2013/2014 2012/2013

Final Appropriation

(R’000)

Actual Expenditure

(R’000)

(Over)/Under Expenditure

(R’000)

Final Appropriation

(R’000)

Actual Expenditure

(R’000)

(Over)/Under

Expenditure (R’000)

Premier Support 14,045 14,045 0 16,486 16,486 0

Director General Support

28,243 25,947 2,296 20,086 19,445 641

Executive Council Support

6,672 6,672 0 4,884 4,885 (1)

Financial Management 32,999 32,999 0 28,405 28,403 2

Programme 1 81,959 79,663 2,296 69,862 69,218 642

Strategic Human Resources

36,549 36,549 0 33,426 33,426 0

ICT 9,024 8,373 651 1,086 1,086 0

Legal Services 4,972 4,972 0 4,231 4,231 0

Communications 19,183 18,883 300 3,102 3,101 1

Programme Support 2,749 2,749 0 2,355 2,355 0

Programme 2 72,477 71,526 951 52,510 52,509 1

Special Programmes 12,983 12,983 0 19,196 16,559 2,637

IGR 2,063 2,063 0 2,030 2,030 0

Provincial Policy Management

15,139 12,619 2,520 10,833 8,924 1,909

Programme Support 2,551 1,266 1,285 1,337 1,337 0

Programme 3 32,736 28,931 3,805 34,605 30,059 4,546


54

B.4 Transfer Payments

4.1 Transfer payments to Public Entities

PSETA – R306 000At reporting date the amount was unspent by the entity, but has been committed for projects to be executed during 2014/15 financial year.

4.2 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

Premier’s Bursary Trust Fund

Trust Study loans for students

Yes 13 504 13 504 -

Mme Re Ka Thusa Trust Financial assistance for previously disadvantaged women to empower them to become economically active

Yes 3 948 3 343 Grant allocations will be processed further during 2014/15

The table below reflects the transfer payments which were budgeted for in the period 1 April 2013 to 31 March 2014, but no transfer payments were made.

None

B5. Conditional Grants

5.1 Conditional grants and earmarked funds paid

The table/s below details the conditional grants and ear marked funds paid during for the period 1 April 2013 to 31 March 2014. None

5.2 Conditional grants and earmarked funds received

The table/s below details the conditional grants and ear marked funds received during for the period 1 April 2013 to 31 March 2014.

None


55

B.6 Donor Funds

6.1 Donor Funds Received

A foreign donation of R 187 467.02 was received and spent during the financial year for exclusive purpose of payment of external audit fees pertaining to the INSPIRE (Information Society Strategy Programme in the Republic of South Africa) close-out project. The donors commissioned an external audit regarding the usage of donor funding for intended purposes. The donors were satisfied with the audit report on the project. INSPIRE was an inter-provincial programme between Northern Cape, Limpopo and the Presidential National Planning Commission. It was funded by the Finish and South African governments. The purpose of INSPIRE programme was to develop provincial information society strategies for the two provinces, aligned to the National Plan.

The table/s below details the donor funds received during for the period 1 April 2013 to 31 March 2014.

Name of donor INSPIRE (Information Society Strategy Programme in the Republic of South Africa)

Full amount of the funding R 187 467.02

Period of the commitment Project has closed out

Purpose of the funding Payment of external audit fees

Expected outputs External Audit Document

Actual outputs achieved External Audit Document

Amount received in current period (R’000) R 187 467.02

Amount spent by the department (R’000) R 187 467.02

Reasons for the funds unspent No funds were unspent

Monitoring mechanism by the donor The external audit was an auditing instrument utilised by the donor as part of the closing out process. The funds were solely for the associated audit cost

B.7 Capital Investment Capital investment, maintenance and asset management plan

Refer to Note 5.7 for maintenance appropriated and expensed during the financial year. The user asset management plan was compiled and approved for 2013/14 financial year.

Infrastructure projects

2013/2014 2012/2013

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Maintenance and repairs

168 168 - - - -

Total 168 168 - - - -


56

PART C: Governance


57

PART C: Governance

C.1 Introduction

The Office of the Premier has committed itself to maintain the highest standards of governance. This includes the prudent management of public finances and resources, as it would give the necessary assurance that the OTP has good governance structures in place to effectively, efficiently and economically utilize the state resources, which is funded by the tax payer.

C.2 Risk Management

A comprehensive risk assessment was performed for 2013/14 financial year resulting in an approved risk register for the financial year. This register was continuously updated with new emerging risks by the Risk Manager on a regular basis during the financial year. Using the approved risk register, action plans were devised to mitigate prioritised top risks. Furthermore, the approved risk register was also provided to the Internal Audit unit to serve as the basis for the development of their rolling internal audit plans.

A risk management committee, appointed in writing by the Accounting Officer, to assist him to discharge his risk management organisation-wide responsibilities was in place for the entire 2013/14 financial year. The Risk management Committee is composed of Senior Executives of the organisation with appropriate diverse skills mix. The committee monitors progress on the implementation of risk mitigation measures to the top risks facing the organisation.

The committee, chaired by Accounting Officer, met four times on the following dates:Date

18 September 2013

26 November 2013

31 January 2014

25 February 2014

C.3 Fraud and Corruption

The Office is not aware of any fraud that was conducted during the year under review.

C.4 Minimising Conflict of Interest

• Bidcommitteemembersdeclaretheirinterestpereachbid• A policy for remuneration for work performed outside the public service (RWOPS) was approved and

implemented during the financial year• Seniormanagersandsupplychainmanagementofficialsdisclosetheirbusinessinterestsonanannualbasis

that are noted by the Executing Authority. Noted declarations are forwarded to the Public Service Commission for compliance.


58

C.5 Code of Conduct

A code of conduct was developed in previous financial years and it is renewed on an annual basis for any updates/deletions. The updated document is disseminated to all departmental officials for awareness and implementation.

C.6 Health Safety and Environmental Issues

During the financial year the term of office of the Health Safety Committee expired. The composition and appointment of the new committee will be during the 2014/15 financial year and this committee will work closely with the existing department wide Risk Management Committee. While the new Health and Safety Committee is being re-established, all safety and environmental risks are being managed through the Risk Management Committee.

C.7 Portfolio Committees

The department appeared before the Portfolio Committee on Finance during the financial year to present the 2012/13 annual report.

C.8 SCOPA Resolutions

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

Resolution 1 Predetermined objectives

The Director General should ensure that all predetermined objectives are adequately addressed and officials are capacitated and monitored on a monthly basis to ensure adequate reporting on predetermined objectives.

A control was put in place for Management Accounting section of Finance, to independently verify quarterly performance information that was consolidated by Policy and Planning Unit. The purpose of this control was to improve accuracy, validity and completeness of performance information when comparing with the annual performance plan and supporting evidence.

Yes

Resolution 2 Operation Clean Audit

The Director General should submit a progress report within 30 days on operation clean audit 2014, detailing the following:State of readiness of government departments, municipalities, and entities in respect of expected unqualified audit outcomes without matters of emphasis.

The Director General submitted a detailed state of readiness report to the Standing Committee on Public Accounts (SCOPA) within 30 days as requested. Copies of the submitted reports have been provided to the external auditors as evidence thereto.

Yes

C.9 Prior modifications to audit reports

None

C.10 Internal Control Unit

The Office of the Premier does not have a separate Internal control Unit. However, preventative, detective and management controls are embedded in organization-wide business processes for execution by the line function officials.


59

Internal control

There was no material breakdown of internal controls during the year under review. The internal control environment was sound.

C.11 Internal Audit and Audit Committees

C.11.1 Internal Audit

Key activities and objectives of the internal audit: The Executive Council of the Northern Cape Provincial Government has established a Shared Provincial Internal Audit Unit (PIAU) to provide internal audit services to all 12 departments within the province. The shared PIAU is divided into 4 clusters, Office of the Premier being serviced by the PIAU - Health Cluster. The PIAU is an independent, objective assurance and consulting activity designed to add value and improve the client’s operations.

The following internal audit work was completed during the year under review: • InformationTechnologyGovernancereview• GIAMAandNorthernCapeLandAdministrationActreview• ManagementPerformanceAssessmentToolcertification• InterimFinancialStatementsreview• AnnualFinancialStatementsreview• VerificationofBASsecurity• Transferpaymentcontrols• HumanResourceManagement• AuditofPerformanceInformation• SupplyChainManagement• FraudRiskevaluation

The internal audit unit also attended and contributed to the departmental risk management committee meetings and ad hoc management meetings as and when requested.

C.11.2 Audit Committee

Key activities and objectives of the audit committee:The Executive Council of the Northern Cape Provincial Government has established Cluster Audit Committees for the 12 Provincial Departments. The Health Cluster Audit Committee deals with 3 departments including the Office of the Premier. The Audit Committee assists the department by providing advice relating to the reporting process, the system of internal control, the risk management processes, the internal and external audit process and the departments processes for monitoring compliance with laws and regulations and the code of conduct.

The Audit Committee consists of the members listed below. It meets as frequent as mandated by the approved Audit Committee charter and as often as it deems necessary.

During the financial year under review, 4 meetings were convened as per its charter.


60

The table below discloses relevant information on the audit committee members

Name Qualifications Internal or external

If internal, position

in the department

Date appointed

Date Resigned

No. of Meetings attended

Anushka Ramlall PhD (International Finance), MBA (Finance Management), Post Grad Diploma (Financial Management), BCom/Admin (Political Science)

External n/a 27 Sep 2011 n/a 3

Frans van Der Westhuizen

LLB, B. Iuris, Dip Iuris External n/a 27 Sep 2011 n/a 4

Bongani Ngqola Post Grad Diploma (Business Management), CISA, Higher Diploma Compt Audit, B. Com (Information Systems), COBOL Entry Level Prog Certificate

External n/a 27 Sep 2011 n/a 4

C.12 Audit Committee Report

The Audit Committee (AC) congratulates the Member of the Executive Council, Director-General, Chief Financial Officer and departmental officials for maintaining an unqualified audit opinion with no findings on predetermined objectives and limited non-compliance findings. This is indeed an achievement and the department is urged to keep up the good effort to improve this audit outcome to a clean audit.

1. INTRODUCTION

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

The Treasury Regulations, section 3.1.13 requires the AC to prepare a report to be included in the annual report of the department and to comment on, a) the effectiveness of internal control;b) the quality of in year management and monthly/quarterly reports submitted in terms of the Act and the

Division of Revenue Act; andc) its evaluation of the annual financial statements.

King III also requires the AC to report to the executive on its compliance with its statutory duties, the independence of the external auditor; its view on the financial statements and accounting practices; and whether the internal financial controls are effective, and also recommend integrated report for approval by the board and provides details on its role, composition, number of meetings and activities.

2. EXECUTIVE REPORTING SUMMARY

2.1 MEETING THE PURPOSE OF AC

2.1.1 The AC was mandated to fulfil the following purposes; • EnsuringtheDepartmenthasandmaintainseffective,efficientandtransparentsystemsoffinancialandrisk

management and internal control;


61

• Ensuringtheenforcementofadequatesystemsandcontrolprocessinthedepartmentforsafeguardingofassets and the management of the revenue, expenditure and liabilities of the department;

• Ensuringthepreparationofaccuratefinancialreportingandmonitoringcompliancewithallapplicablelegalrequirements and accounting standards;

• Ensuringdepartment’saccountabilityandmanagingtheassociatedriskintermsofmanagement,assuranceand reporting.

2.1.2 While carrying its mandate in ensuring achievement of the above-listed requirements to achieve its stated purpose, the AC for the Office of the Premier (OTP) experienced some challenges. However, significant strides have been made in the last year and a half by OTP to achieve and maintain the effective system of internal controls. The following are the weaknesses that were resolved: • Thesystemofinternalcontrolisnotyeteffectivebutimprovingcontinuously;• RiskManagementprocessesarenowestablishedandoperational;• There are nomaterialweaknesses that have been identifiedduring theAC’s reviewof the draft Annual

Financial Statements; 2.2 AUTHORITY OF THE AC

The AC has for the past financial year ended 31 March 2014 maintained its authority. The AC still maintained; • Unrestrictedaccesstopersonnelandrecords;andwasabletocommandtheDepartment’sresourcesthat

are necessary for carrying out its duties. • TheACcontinuedtomakerecommendationstothemanagementofOTP,whichrecommendationshave

been implemented.

2.3 COMPOSITION OF THE COMMITTEE

2.3.1 As at the end of the financial year, the AC consisted of only 3 external members who just making quorum of 3 members as required by the Charter as 2 internal AC members were not replaced since resignation.

2.3.2 The request for the filling of the two vacant posts has been made to the Provincial Treasury but these has not been filled.

2.3.3 The AC members are suitably skilled, experienced and have sufficient qualifications and experience to fulfil their duties as AC members. The AC members have collectively demonstrated good understanding of; • CorporateGovernance;RiskManagement&PerformanceManagement;• SystemofInternalControls,FinancialandSustainabilityReporting;• InternalandExternalAuditprocesses;• ExternalLegislation,Regulations,ActsandLaws,including;PFMAandTreasuryRegulationsand;• InformationTechnology.

2.3.4 The AC members have sufficiently, individually and collectively demonstrated independence, objectivity and integrity and have also demonstrated ethical and moral values while executing and discharging their duties.


62

2.4 MEETINGS

2.4.1 Meeting Schedules AC meetings have been scheduled to sit 4 times a year. All meetings were attended as planned and all had their

quorum fully constituted and were therefore valid.

2.4.2 Attendance and Quorum Three of the four meetings were chaired by the AC Chairperson and one meeting chaired by a delegated

external AC member.

All meetings were fully constituted based on the quorum of at least 3 members, two being external and one being internal member. The meetings always had 3 external audit members and made a full quorum.

2.4.3 Agenda, Minutes and AC Documentation Pack All meetings held had agenda and minutes were recorded. The Agenda and minutes formed part of the AC

pack, which was distributed prior to the meeting dates.

2.4.4 Decisions No resistance of the AC decisions was encountered.

2.4.5 Reporting The AC has a reporting line to the Head of Treasury. The AC has not reported anything to the stakeholders of the relevant areas such as the Office of the Premier.

2.5 ROLES AND RESPONSIBILITIES OF THE COMMITTEE

During the AC meetings the AC reviewed per Treasury Regulations, section 27.1.8 the:• effectivenessofinternalcontrol;• effectivenessofinternalaudit;• theriskareasoftheentity’soperationstobecoveredinthescopeofinternalandexternalaudits;• theadequacy,reliabilityandaccuracyoffinancialinformationprovidedtomanagementandotherusersof

such information;• anyaccountingandauditingconcernsidentifiedasaresultofinternalandexternalaudits;• theentity’scompliancewithlegalandregulatoryprovisions;• theactivitiesoftheinternalauditfunction, includingitsannualworkprogramme,co-ordinationwiththe

external auditors, the reports of significant investigations and the responses of management to specific recommendations.


63

2.5.1 ANNUAL FINANCIAL STATEMENTS (AFS)

The AC had reviewed the Annual Financial Statements for the Department of OTP, prior to them being handed over to the Auditor-General and found the following:• TheAFSsubmittedtotheACwerefinalandwasapprovedbytheAccountingOfficer;• TheAFSsubmittedtotheACwereofgoodqualityandsupportedbysufficientworkingpapers.

2.5.2 QUARTERLY REPORTING

The AC were provided with quarterly financial reports for review and reviewed the Interim Financial Statements for the period ending 30 September 2013.

2.6 INTERNAL AUDIT PERFORMANCE

The internal audit unit was formally assessed by the Auditor-General in March to May 2014. For the second year the Auditor-General did not report any findings related to the internal audit unit. The internal audit unit executed 100% of the audit plan for the year.

2.7 EXTERNAL AUDIT

2.7.1 AC has reviewed and approved the External Audit Strategy, including the terms, nature and scope of the audit and the audit fees as required by the AC Charter.

2.7.2 AC has reviewed the overall audit roles to ensure the avoidance of the duplication of work by both internal and external auditors. The AC adopted a Combined Assurance Plan which is refined annually.

2.7.3 AC has determined and assisted in the significant difference of opinion between Management and Auditors regarding issues of accounting and financial reporting.

2.8 AUDITOR-GENERAL’S REPORT

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

_________________Dr Anushka RamlallChairperson of the AC - Office of the Premier31 July 2014


64

PART D: Human Resource

Management


65

PART D: Human Resource Management

D.1 Human Resources Oversight Statistics

3.1. Personnel related expenditure

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

• amountspentonpersonnel• amountspentonsalaries,overtime,homeowner’sallowancesandmedicalaid

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

Programme Expenditure (R’000) Personnel Expenditure

as a % of total expenditure

Average personnel; cost per employee

(R’000)

Total Personnel Training Professional and Special

Services

1: Administration 79,663 35,902 0 0 45.1% 341.9

2: Institutional development

7,1526 36,844 717 0 51.5% 418.7

3. Policy and governance 28,931 20,246 0 0 69.9% 397.0

TOTAL 180,120 92,992 717 0 51.6% 381.1

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

Salary Band Personnel Expenditure (R’000)

Personnel Expenditure

as a % of total expenditure

No of employees

Average personnel cost per employee

(R’000)

Lower Skilled (Levels 1-2)

Skilled (Levels 3-5) 10,503 11,3 67 157

Highly skilled production (Levels 6-8) 15,166 16,3 59 257

Highly skilled supervision (Levels 9-12) 32,551 35 74 440

Senior management (Levels 13-16) 28,789 31 26 1,107

Contract (Levels 3-5) 1,036 1,1 7 148

Contract (Levels 6-8) 205 0,2 1 205

Contract (Levels 9-12) 2,814 3 6 469

Contract (Levels 13-16) 1,688 1,8 4 422

Abnormal Appointment 240 0,3 14 17

TOTAL 92,992 100 258 360


66

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

Programme

Salaries Overtime Home Owners Allowance

Medical Aid

Amount (R’000)

Salaries as a % of

personnel costs

Amount (R’000)

Overtime as a % of

personnel costs

Amount (R’000)

HOA as a % of

personnel costs

Amount (R’000)

Medical aid as a % of

personnel costs

1:Administration 27,106 75,5 246 0,7 1156 3,2 1,450 4

2:Institutional development

29,245 79,4 1 0 764 2,1 1,350 3,7

3: Policy and governance

16,180 79,9 39 0,2 392 1,9 764 3,8

TOTAL 72,531 78 286 0,3 2312 2,5 3,564 3,8

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

Salary bandSalaries Overtime Home Owners

AllowanceMedical Aid

Amount (R’000

Salaries as a % of

personnel costs

Amount (R’000)

Overtime as a % of

personnel costs

Amount (R’000)

HOA as a % of

personnel costs

Amount (R’000)

Medical aid as a % of

personnel costs

Skilled (level 1-2) 0 0 0 0 0 0 0 0

Skilled (Levels 3-5) 7,110 67,7 27 0,3 616 5,9 1,130 10,8

Highly skilled production (Levels 6-8) 11,062 72,9 105 0,7 576 3,8 932 6,1

Highly skilled supervision (Levels 9-12) 25,330 77,8 152 0,5 645 2 1,038 3,2

Senior management (Levels 13-16) 23,558 81,8 0 0 475 1,6 464 1,6

Contract (Levels 3-5) 1,034 99,8 2 0,2 0 0 0 0

Contract (Levels 6-8) 205 100 0 0 0 0 0 0

Contract (Levels 9-12) 2,564 91,1 0 0 0 0 0 0

Contract (Levels 13-16) 1,428 84,6 0 0 0 0 0 0

Abnormal Appointment 240 100 0 0 0 0 0 0

TOTAL 72,531 78 286 0,3 2312 2,5 3,564 3,8

3.2. Employment and Vacancies

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


67

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• salaryband• criticaloccupations(seedefinitioninnotesbelow).

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

Table 3.2.1 Employment and vacancies by programme 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

1: Administration 115 105 8,7 0

2: Institutional development 100 88 12 0

3: Policy and governance 57 51 10,5 0

TOTAL 272 244 10,3 0

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 Rate

Number of Employees


Skilled (Levels 3-5) 71 67 5,6 0

Highly skilled production (Levels 6-8) 66 59 10,6 0

Highly skilled supervision (Levels 9-12) 85 74 12,9 0

Senior management (Levels 13-16) 32 26 18,8 0

Contract (Levels 3-5) 7 7 0 0




TOTAL 272 244 10,3 0

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

Critical Occupations Number of Posts on Approved

Establishment

Number of Posts

Filled

Vacancy Rate

Number of Employees


Administrative related 74 65 12,2 0

Cleaners in offices workshops hospitals etc. 5 5 0 0

Client inform clerks(switchb recept inform clerks) 3 3 0 0

Computer system designers and analysts. 3 2 33,3 0


68

Critical Occupations Number of Posts on Approved

Establishment

Number of Posts

Filled

Vacancy Rate

Number of Employees


Finance and economics related 7 7 0 0

Financial clerks and credit controllers 16 15 6,3 0

Food services aids and waiters 6 6 0 0

General legal administration & rel. professionals 11 11 0 0

Head of department/chief executive officer 1 1 0 0

Household food and laundry services related 2 2 0 0

Human resources & organisat developm & relate prof 14 10 28,6 0

Human resources clerks 11 11 0 0

Human resources related 13 12 7,7 0

Language practitioners interpreters & other commun 3 2 33,3 0

Library mail and related clerks 10 9 10 0

Messengers porters and deliverers 5 5 0 0

Other administrat & related clerks and organisers 17 15 11,8 0

Other administrative policy and related officers 12 11 8,3 0

Other information technology personnel. 5 3 40 0

Other occupations 1 1 0 0

Psychologists and vocational counsellors 1 1 0 0

Risk management and security services 2 2 0 0

Secretaries & other keyboard operating clerks 19 19 0 0

Security guards 8 7 12,5 0

Security officers 2 2 0 0

Senior managers 21 17 19 0

TOTAL 272 244 10,3 0

3.3. Filling of SMS Posts

The tables in this section provide information on employment and vacancies as it relates to members of the Senior Management Service by salary level. It also provides information on advertising and filling of SMS posts, reasons for not complying with prescribed timeframes and disciplinary steps taken.

Table 3.3.1 SMS post information as on 31 March 2014

SMS Level Total number of

funded SMS posts

Total number of SMS posts filled

% of SMS posts filled

Total number of SMS posts

vacant

% of SMS posts vacant

Director General/ Head of Department

1 1 100% 0 0%

Salary Level 16 1 1 100% 0 0%

Salary Level 15 3 2 66.7% 1 33.3%

Salary Level 14 7 7 100% 0 0%

Salary Level 13 25 22 88% 3 12%

TOTAL 37 33 89% 4 11%


69

Table 3.3.2 SMS post information as on 30 September 2013


funded SMS posts

Total number of SMS posts filled

% of SMS posts filled

Total number of SMS posts

vacant

% of SMS posts vacant


1 1 100% 0 0%

Salary Level 16 1 1 100% 0 0%

Salary Level 15 2 1 50% 1 50%

Salary Level 14 8 8 100% 0 0%

Salary Level 13 22 21 95% 1 5%

TOTAL 34 32 94% 2 6%

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

SMS Level Vacant Posts

Advertised


Salary Level 16

Salary Level 15 1 1

Salary Level 14

Salary Level 13 3 2

TOTAL 4 3

Within a nationally determined framework, executing authorities may evaluate or re-evaluate any job in his or her organisation. In terms of the Regulations all vacancies on salary levels 9 and higher must be evaluated before they are filled. The following table summarises the number of jobs that were evaluated during the year under review. The table also provides statistics on the number of posts that were upgraded or downgraded.

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

Salary Band Number of Posts on

approved establishment

Number of Jobs

Evaluated

% of Posts Evaluated

Posts Upgraded Posts Downgraded

Number % of Posts Evaluated


Contract (Levels 3-5) 7 0 0 0 0 0 0

Contract (Levels 6-8) 1 0 0 0 0 0 0

Contract (Levels 9-12) 6 0 0 0 0 0 0

Contract (Band A) 4 0 0 0 0 0 0

Skilled (Levels 3-5) 71 0 0 0 0 0 0

Highly skilled production (Levels 6-8)

66 1 1,5 0 0 0 0

Highly skilled supervision (Levels 9-12)

85 5 5,9 0 0 0 0

Senior Management Service Band A

19 2 10,5 0 0 0 0


70

Salary Band Number of Posts on

approved establishment

Number of Jobs

Evaluated

% of Posts Evaluated

Posts Upgraded Posts Downgraded



Senior Management Service Band B

8 1 12,5 0 0 0 0

Senior Management Service Band C

3 0 0 0 0 0 0

Senior Management Service Band D

2 0 0 0 0 0 0

TOTAL 272 9 3,3 0 0 0 0

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

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

Beneficiaries African Asian Coloured White Total

Female 6 0 3 0 9

Male 4 0 2 0 6

Total 10 0 5 0 15

Employees with a Disability 0 0 0 0 0

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

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

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

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 and 31 March 2014

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

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).


71

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

Salary band Number of employees at beginning of

period-1 April 2013

Appointments and transfers

into the department

Terminations and transfers

out of the department

Turnover rate

Skilled (Levels 3-5) 65 1 1 1,5

Highly skilled production (Levels 6-8) 59 1 2 3,4

Highly skilled supervision (Levels 9-12) 65 7 6 9,2

Senior Management Service Band A 20 0 4 20

Senior Management Service Band B 7 0 2 28,6

Senior Management Service Band C 2 0 1 50

Senior Management Service Band D 2 0 1 50




Contract (Band A) 1 1 0 0

Contract (Band B) 1 0 0 0

Abnormal Appointments 9 0 0 0

TOTAL 241 15 26 11

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

Critical occupation Number of employees at beginning of

period-April 2014


into the department



Turnover rate

Administrative related 59 8 4 6,8

Civil engineering technicians 1 0 0 0

Cleaners in offices workshops hospitals etc. 5 0 0 0

Client information clerks(switchb recept inform clerks) 4 0 0 0

Computer system designers and analysts. 2 0 0 0

Finance and economics related 6 0 0 0

Financial clerks and credit controllers 14 1 0 0

Food services aids and waiters 6 1 0 0

General legal administration & rel. professionals 11 0 0 0

Head of department/chief executive officer 1 0 0 0

Household food and laundry services related 2 0 0 0

Human resources & organisat developm & relate prof 9 0 2 22,2

Human resources clerks 10 0 0 0

Human resources related 12 0 1 8,3

Language practitioners interpreters & other commun 1 0 0 0

Library mail and related clerks 10 0 3 30

Messengers porters and deliverers 5 0 1 20

Other administrat & related clerks and organisers 20 2 3 15

Other administrative policy and related officers 9 0 1 11,1


72

Critical occupation Number of employees at beginning of

period-April 2014


into the department



Turnover rate

Other information technology personnel. 5 1 2 40

Other occupations 1 0 1 100

Psychologists and vocational counsellors 1 0 0 0

Risk management and security services 1 1 0 0

Secretaries & other keyboard operating clerks 17 1 3 17,6

Security guards 8 0 0 0

Security officers 1 0 0 0

Senior managers 20 0 5 25

TOTAL 241 15 26 11

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 and 31 March 2014

Termination Type Number % of Total Resignations

Death 1 3,8

Resignation 15 53,8

Expiry of contract 8 30,8

Dismissal-misconduct 1 3,8

Retirement 1 3,8

TOTAL 26 100

Table 3.5.4 Promotions by critical occupation for the period 1 April 2013 and 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

Administrative related 59 4 6,8 40 67,8

Civil engineering technicians 1 0 0 1 100

Cleaners in offices workshops hospitals etc.

5 0 0 5 100

Client inform clerks(switchb recept inform clerks)

4 0 0 1 25

Computer system designers and analysts.

2 0 0 1 50

Finance and economics related 6 1 16,7 4 66,7

Financial clerks and credit controllers

14 2 14,3 9 64,3

Food services aids and waiters 6 0 0 3 50

General legal administration & rel. professionals

11 0 0 9 81,8

Head of department/chief executive officer

1 0 0 0 0

Household food and laundry services related

2 0 0 1 50


73

Occupation Employees 1 April

2013


Salary level promotions as a % of employees by occupation


level

Notch progression as a % of employees by occupation

Human resources & organisat developm & relate prof

9 2 22,2 9 100

Human resources clerks 10 0 0 7 70

Human resources related 12 0 0 8 66,7

Language practitioners interpreters & other commun

1 1 100 1 100

Library mail and related clerks 10 0 0 2 20

Messengers porters and deliverers 5 0 0 1 20

Other administrat & related clerks and organisers

20 0 0 5 25

Other administrative policy and related officers

9 1 11,1 8 88,9

Other information technology personnel.

5 0 0 2 40

Other occupations 1 1 100 0 0

Psychologists and vocational counsellors

1 0 0 0 0

Risk management and security services

1 0 0 1 100

Secretaries & other keyboard operating clerks

17 1 5,9 11 64,7

Security guards 8 0 0 6 75

Security officers 1 1 100 1 100

Senior managers 20 1 5 17 85

TOTAL 241 15 6,3 153 63,5

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

Salary Band Employees 1 April 2013


Salary bands promotions as a % of employees by salary level


level

Notch progression as a % of

employees by salary bands

Skilled (Levels 3-5) 65 1 1,6 34 53,1


59 4 6,8 42 71,2


65 6 9 47 70,1

Senior management (Levels 13-16)

31 4 12,9 28 90,3

Contract (Levels 3-5) 4 0 0 0 0




Abnormal Appointments 9 0 0 0 0

TOTAL 241 15 6,3 153 63.5


74

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 category Male Female Total

African Coloured Indian White African Coloured Indian White

Legislators, senior officials and managers

9 3 0 1 3 1 1 1 19

Professionals 18 9 0 1 10 7 0 3 48

Technicians and associate professionals

26 8 1 1 27 9 0 4 76

Clerks 15 6 0 1 28 17 0 5 72

Service and sales workers 8 1 0 0 3 1 0 0 13

Elementary occupations 9 1 0 0 6 0 0 0 16

TOTAL 85 28 1 4 77 35 1 13 244


9 3 0 1 3 1 1 1 19

Professionals 18 9 0 1 10 7 0 3 48


26 8 1 1 27 9 0 4 76

Employees with disabilities 1 2 0 0 0 0 0 0 3

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 band Male Female Total


Top Management 3 0 0 0 0 1 0 0 4

Senior Management 8 2 0 2 6 1 1 2 22

Professionally qualified and experienced specialists and mid-management

28 11 0 1 20 10 0 4 74

Skilled technical and academically qualified workers, junior management, supervisors, foremen

19 5 0 0 21 10 0 4 59

Semi-skilled and discretionary decision making

22 6 0 1 25 10 0 3 67

Contract (Senior Management)

0 2 1 0 0 1 0 0 4

Contract (Professionally qualified)

3 1 0 0 0 2 0 0 6

Contract (Skilled technical) 1 0 0 0 0 0 0 0 1

Contract (Semi-skilled) 1 1 0 0 5 0 0 0 7

TOTAL 85 28 1 4 77 35 1 13 244


75

Table 3.6.3 Recruitment for the period 1 April 2013 to 31 March 2014



Professionally qualified and experienced specialists and mid-management

3 1 0 0 3 0 0

0 7

Skilled technical and academically qualified workers, junior management, supervisors, foremen

1 0 0 0 0 0 0

0 1

Semi-skilled and discretionary decision making

0 0 0 0 1 0 0

0 1

Contract (Senior Management)

0 1 0 0 0 0 00 1

Contract (Professionally qualified)

0 0 0 0 0 1 00 1

Contract (Semi-skilled) 1 0 0 0 3 0 0 0 4

TOTAL 5 2 0 0 7 1 0 0 15


Table 3.6.4 Promotions/ Pay Progressions for the period 1 April 2013 to 31 March 2014



Top Management, Permanent 1 0 0 0 0 1 0 0 2

Senior Management, Permanent 11 3 0 2 9 3 0 2 30

Professionally qualified and experienced specialists and mid-management, Permanent 17 8 0 0 17 8 0 3 53

Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 14 3 0 0 19 6 0 4 46

Semi-skilled and discretionary decision making, Permanent 15 3 0 0 12 4 0 1 35

Contract (Senior Management), Permanent 0 0 1 0 0 0 0 0 1

Contract (Professionally qualified), Permanent 1 0 0 0 0 0 0 0 1

TOTAL 59 17 1 2 57 22 0 10 168



76

Table 3.6.5 Terminations for the period 1 April 2013 to 31 March 2014



Top Management, Permanent 0 0 0 0 1 1 0 0 2

Senior Management, Permanent 2 0 1 0 1 1 0 0 5

Professionally qualified and experienced specialists and mid-management, Permanent

3 0 0 0 0 3 0 0 6

Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent

1 0 0 0 0 1 0 1 3

Semi-skilled and discretionary decision making, Permanent

1 0 0 0 0 0 0 0 1

Contract (Senior Management), Permanent

0 0 0 0 0 1 0 0 1

Contract (Professionally qualified), Permanent

1 0 0 0 2 0 0 0 3

Contract (Semi-skilled), Permanent

1 0 0 0 3 1 0 0 5

TOTAL 9 0 1 0 7 8 0 1 26

Employees with Disabilities 0 0 0 0 0 0 0 0 0

Table 3.6.6 Disciplinary action for the period 1 April 2013 to 31 March 2014

Disciplinary action Male Female Total


TOTAL 0 0 0 0 0 0 0 0 0

Table 3.6.7 Skills development for the period 1 April 2013 to 31 March 2014

Occupational category Male Female Total



1 0 0 3 1 2 2 1 11

Professionals 20 0 0 0 7 2 1 4 34


5 7 0 4 2 0 1 19

Clerks 4 0 0 0 4 3 0 0 11

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 1 1 0 0 15 1 0 0 18

Total 32 8 0 3 31 10 3 6 93



77

3.7. Signing of Performance Agreements by SMS Members

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

Table 3.7.1 Signing of Performance Agreements by SMS members as on 31 May 2013


funded SMS posts

Total number of SMS

members

Total 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 1 1 1 100%



Salary Level 13 21 21 21 100%

Total 33 33 33 100%

Notes In the event of a National or Provincial election occurring within the first three months of a financial year all members of the SMS must conclude and sign their performance agreements for that financial year within three months following the month in which the elections took place. For example if elections took place in April, the reporting date in the heading of the table above should change to 31 July 2014.

Table 3.7.2 Reasons for not having concluded Performance agreements for all SMS members as on 31 March 2014

Reasons

All SMS members concluded Performance agreements

Table 3.7.3 Disciplinary steps taken against SMS members for not having concluded Performance agreements as on 31 March 2014

Reasons

Not Applicable

3.8. Performance Rewards

To encourage good performance, the department has granted the following performance rewards during the year under review. The information is presented in terms of race, gender, disability, salary bands and critical occupations (see definition in notes below).

Table 3.8.1 Performance Rewards by race, gender and disability for the period 1 April 2013 to 31 March 2014

Race and GenderBeneficiary Profile Cost

Number of beneficiaries

Number of employees

% of total within group

Cost (R’000)

Average cost per

employee

African 17 162 10,5 277 16,294

Male 7 85 8,2 122 17,429

Female 10 77 13 155 15,500


78

Race and GenderBeneficiary Profile Cost


Number of employees

% of total within group

Cost (R’000)

Average cost per

employee

Asian 0 2 0 0 0

Male 0 1 0 0 0

Female 0 1 0 0 0

Coloured 7 63 11,1 168 24,000

Male 3 27 11,1 88 29,333

Female 4 36 11,1 80 20,000

White 2 17 11,8 27 26,922

Male 0 4 0 0 0

Female 2 13 15,4 27 13,500

Total 24 244 9,8 472 19,667

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 bandBeneficiary Profile Cost Total cost as a

% of the total personnel

expenditure


Number of employees

% of total within salary bands

Total Cost (R’000)

Average cost per

employee

Skilled (Levels 3-5) 4 67 6 11 2,750 0.01%

Highly skilled production (Levels 6-8) 8 60 13,3 68 8,500 0.07%

Highly skilled supervision (Levels 9-12) 8 73 11 182 22,750 0.02%

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



Abnormal Appointment 0 7 0 0 0 0%

TOTAL 20 220 9,1 261 13,050 0.28%

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 employees

% of total within

occupation

Total Cost

(R’000)

Average cost per

employee

Administrative related 3 49 4,6 152 50,667

Cleaners in offices workshops hospitals etc. 0 5 0 0 0

Client inform clerks(switchb recept inform clerks) 0 3 0 0 0

Computer system designers and analysts. 1 3 50 12 12,000

Finance and economics related 1 11 14,3 23 23,000

Financial clerks and credit controllers 0 11 0 19 0

Food services aids and waiters 0 8 0 0 0

General legal administration & rel. professionals 1 7 9,1 67 67,000

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

Household food and laundry services related 0 0 0 0 0

Human resources & organisat developm & relate prof 0 10 0 16 0

Human resources clerks 0 5 0 0 0


79

Critical occupationBeneficiary Profile Cost


Number of employees

% of total within

occupation

Total Cost

(R’000)

Average cost per

employee

Human resources related 2 19 16,7 0 0

Language practitioners interpreters & other commun 1 2 50 12 12,000

Library mail and related clerks 1 16 11,1 8 8,000

Messengers porters and deliverers 0 6 0 0 0

Other administrat & related clerks and organisers 1 12 6,7 6 6,000

Other administrative policy and related officers 0 11 0 0 0

Other information technology personnel. 0 4 0 0 0

Other occupations 0 1 0 0 0

Psychologists and vocational counsellors 0 1 0 0 0

Risk management and security services 0 2 0 0 0

Secretaries & other keyboard operating clerks 6 19 31,6 47 7,833

Security guards 1 7 14,3 5 5,000

Security officers 2 2 100 12 6,000

Senior managers 4 29 23,5 92 23,000

TOTAL 24 244 9,8 471 19,625

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 bandBeneficiary Profile Cost Total cost as a

% of the total personnel

expenditure


Number of employees

% of total within salary

bands

Total Cost (R’000)

Average cost per

employee

Band A 3 20 20 93 31,000 0,1

Band B 1 6 0 119 119,000 0,2

Band C 0 2 0 0 0 0

Band D 0 2 0 0 0 0

TOTAL 4 30 13,3 212 53,000 0,3

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 and 31 March 2014

Salary band 01 April 2013 31 March 2014 Change

Number % of total Number % of total Number % Change

Lower skilled 1 100 1 100 0 0

Highly skilled production (Lev. 6-8) - - - - - -

Highly skilled supervision (Lev. 9-12) - - - - - -

Contract (level 9-12) - - - - - -

Contract (level 13-16) - - - - - -

Total 1 100 1 100 0 0


80

Table 3.9.2 Foreign workers by major occupation for the period 1 April 2013 and 31 March 2014

Major occupation 01 April 2013 31 March 2014 Change

Number % of total Number % of total Number % Change

Administrative office workers 1 100 1 100 0 0

TOTAL 1 100 1 100 0 0

3.10. Leave utilisation

The Public Service Commission identified the need for careful monitoring of sick leave within the public service. The following tables provide an indication of the use of sick leave and disability leave. In both cases, the estimated cost of the leave is also provided. Table 3.10.1 Sick leave for the period 1 January 2013 to 31 December 2014

Salary band Total days % Days with Medical

certification

Number of Employees using sick

leave

% of total employees using sick

leave

Average days per

employee

Estimated Cost

(R’000)

Skilled (Levels 3-5) 541 88,9 50 25,8 11 265


568 66,7 56 28,9 10 345


489 83,8 54 27,8 9 766

Senior management (Levels 13-16)

162 92,6 21 10,8 8 719

Contract (Levels 3-5) 15 33,3 7 3,6 2 1

Contract (Levels 9-12) 19 52,6 4 2,1 5 81

Contract (Levels 13-16) 3 33,3 2 1 2 35

TOTAL 1,797 79,9 194 100 9 2,212

Table 3.10.2 Disability leave (temporary and permanent) for the period 1 January 2013 to 31 December 2014

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)

Lower skilled (Levels 1-2)

Skilled (Levels 3-5) 214 100 2 40 107 117


154 100 2 40 77 111


13 100 1 20 13 13

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

Total 381 100 5 100 76 241


81

The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service.

Table 3.10.3 Annual Leave for the period 1 January 2013 to 31 December 2014

Salary band Total days taken

Number of Employees using

annual leave

Average per employee

Skilled (Levels 3-5) 1,396 61 23

Highly skilled production (Levels 6-8) 1,450 63 23

Highly skilled supervision (Levels 9-12) 1,675 69 24

Senior management (Levels 13-16) 688 29 24

Contract (Levels 3-5) 108 7 15




TOTAL 5,434 236 23

Table 3.10.4 Capped leave for the period 1 January 2013 to 31 December 2014

Salary band Total days of capped

leave taken

Number of Employees

using capped leave

Average number of

days taken per employee

Average capped leave per

employee as on 31 March 2014

Skilled Levels 3-5) - - - -

Highly skilled production (Levels 6-8) - - - -

Highly skilled supervision(Levels 9-12) 0 2 0 29

Senior management (Levels 13-16) 5 1 5 32

Total 5 3 2 30

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

Table 3.10.5 Leave pay-outs for the period 1 April 2013 and 31 March 2014

Reason Total amount (R’000)

Number of employees

Average per employee

(R’000)

Leave pay-out for 2013/14 due to non-utilisation of leave for the previous cycle

- - -

Capped leave pay-outs on termination of service for 2013/14 - - -

Current leave pay-out on termination of service for 2013/14 290 7 41

TOTAL 290 7 41


82

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

All employees at the OTP are equally at risk. There is no discernable category with a higher inherent risk.

The Employee Health and Wellness unit performs health risk assessments

Table 3.11.2 Details of Health Promotion and HIV/AIDS Programmes

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 Senior Manager Employee Health and Wellness unit

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

X Employee Health and Wellness unit

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

X HIV Counselling and Testing ProgrammeImplemented a IEC (Information, Education and Communication) Programme

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.

X The committee has 23 members and is headed by Liezl Anthony (Manager EHWP)

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

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 Zero tolerance for discrimination based on HIV/AIDS status

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

X Established a workplace testing centre.

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

X

3.12. Labour Relations

Table 3.12.1 Collective agreements for the period 1 April 2013 and 31 March 2014

Number of Collective Agreements None


83

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 and 31 March 2014

Outcomes of disciplinary hearings Number % of total

Correctional counselling 0 0%

Verbal warning 2 33.3%

Written warning 1 16.7%

Final written warning 1 16.7%

Suspended without pay 0 0%

Fine 0 0%

Demotion 0 0%

Dismissal 1 16.7%

Not guilty 0 0%

Case withdrawn 1 16.7%

Total 6 60%

Table 3.12.3 Types of misconduct addressed at disciplinary hearings for the period 1 April 2013 and 31 March 2014

Type of misconduct Finalised In Progress

Total % of total

RWOPS 1 1 12.5%

Insolence 2 1 3 37.5%

Absenteeism 3 1 4 50.0%

Fraud 1 0 1 12.5%

Total 6 2 8 100%

Table 3.12.4 Grievances logged for the period 1 April 2013 and 31 March 2014

Grievances Number % of Total

Number of Grievances Resolved 3 100%

Number of grievances not resolved 0 0%

Total number of grievances lodged 3 100%

Table 3.12.5 Disputes logged with Councils for the period 1 April 2013 and 31 March 2014

Disputes Number % of Total

Not finalised 3 75%

Number of disputes upheld 0 0%

Number of disputes dismissed 1 25%

Total number of disputes lodged 4 100%


84

Table 3.12.6 Strike actions for the period 1 April 2013 and 31 March 2014

Total number of persons working days lost 0

Total costs working days lost 0

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

Table 3.12.7 Precautionary suspensions for the period 1 April 2013 and 31 March 2014

Number of people suspended 0

Number of people whose suspension exceeded 30 days 0

Average number of days suspended 0

Cost of suspension(R’000) 0

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 and 31 March 2014

Occupational category Gender Number 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


Female 6 0 16 2 18

Male 13 0 16 3 19

Professionals Female 20 0 7 3 10

Male 28 0 14 2 16


Female 40 0 10 14 24

Male 36 0 3 5 8

Clerks Female 50 0 31 11 42

Male 22 0 14 3 17

Service and sales workers Female 4 0 0 0 0

Male 9 0 0 0 0


Female 6 0 0 0 0

Male 10 0 0 0 0

Craft and related trades workers

Female 6 0 0 0 0

Male 13 0 0 0 0


Female 20 0 0 0 0

Male 28 0 0 0 0

Elementary occupations Female 40 9 0 0 0

Male 36 0 0 0 0

Sub Total Female 126 9 64 30 94

Male 118 0 47 13 60

Total 244 9 111 86 154


85

Table 3.13.2 Training provided for the period 1 April 2013 and 31 March 2014

Occupational category Gender Number of employees as at 1 April 2013

Training provided within the reporting period

Learnerships Skills Programmes & other short

courses

Other forms of training

Total


Female 6 0 6 3 9

Male 13 0 5 3 8

Professionals Female 20 0 14 5 19

Male 28 0 20 7 27


Female 40 0 7 9 16

Male 36 0 11 5 16

Clerks Female 50 0 7 10 17

Male 22 0 3 3 6

Service and sales workers Female 4 0 17 0 17

Male 9 0 3 0 6


Female 6 0 0 0 0

Male 10 0 0 0 0

Craft and related trades workers Female 6 0 0 0 0

Male 13 0 0 0 0


Female 20 0 0 0 0

Male 28 0 0 0 0

Elementary occupations Female 40 0 0 0 27

Male 36 0 0 0 18

Sub Total Female 126 9 0 27 105

Male 118 0 0 18 81

Total 244 9 93 90 186

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 and 31 March 2014

Nature of injury on duty Number % of total

Required basic medical attention only 0

Temporary Total Disablement 0

Permanent Disablement 0

Fatal 0

Total 0

3.16. Severance Packages

Table 3.16.1 Granting of employee initiated severance packages for the period 1 April 2013 and 31 March 2014

No Severance Packages granted


86

PART E: Financial Information


87

REPORT OF THE AUDITOR-GENERAL TO THE NORTHERN CAPE PROVINCIAL LEGISLATURE ON VOTE NO. 1: OFFICE OF THE PREMIERREPORT ON THE FINANCIAL STATEMENTS

Introduction

1. I have audited the financial statements of the Office of the Premier set out on pages 92 to 138, which comprise the appropriation statement, the statement of financial position as at 31 March 2014, the statement of financial performance, statement of changes in net assets and the cash flow statement for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information.

Accounting officer’s responsibility for the financial statements

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

Auditor-General’s responsibility

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

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

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

Opinion

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


88

Additional matter

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

Unaudited supplementary schedules

8. The supplementary information set out on pages 139 to 150 does not form part of the financial statements and is presented as additional information. I have not audited these schedules and, accordingly, I do not express an opinion thereon.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

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

Predetermined objectives

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:• Programme2:InstitutionalDevelopmentonpages29to41• Programme3:PolicyandGovernanceonpages41to50

11. I evaluated the reported performance information against the overall criteria of usefulness and reliability.

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 (FMPPI).

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:


89

Achievement of planned targets

16. Refer to the annual performance report on pages 29 to 41, regarding the Institutional Development programme; 41 to 50, regarding the Policy and Governance programme; for information on the achievement of planned targets for the year.

Unaudited supplementary information

17. The supplementary information set out on pages 51 to 85 does not form part of the annual performance report and is presented as additional information. We have not audited this information and, accordingly, we do not express a conclusion thereon

Compliance with legislation

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

Annual financial statements, performance and annual reports

19. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework and supported by full and proper records as required by section 40(1)(a) of the Public Finance Management Act.

20. Material misstatements of disclosure items identified by the auditors in the submitted financial statement were subsequently corrected and the supporting records were provided subsequently, resulting in the financial statements receiving an unqualified audit opinion.

Liability management

21. There was no evidence that credit cards were used for the permitted purpose, as set out in Treasury Regulation 15.10.3.6, and these were not cancelled as per the specified date, as required by Treasury Regulation 15.10.3.4.

Human resource management

22. Funded vacant posts were not filled within 12 months as required by Public Service Regulation 1/VII/C.1A.2.

Expenditure management

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

Procurement and Contract management

24. Some IT related goods and services, classified as mandatory, were not procured through SITA as required by Treasury Regulation 16A6.3 (e).


90

Internal control

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

Leadership

26. The accounting officer did not ensure that internal control deficiencies are identified and communicated in order to mitigate the risks of financial and performance reporting, resulting in material misstatements and non-compliance to laws and regulations.

27. Actions plans to address prior year audit findings developed; however were not efficiently monitored by the leadership of the department resulting in the reoccurrence of material misstatements in the annual financial statements and non-compliance with legislation.

Financial and performance management

28. The financial statements were not adequately reviewed for completeness, occurrence and accuracy prior to the submission of the information for audit purposes. As a result, the financial statements were subject to material amendments resulting from the audit. The accounting officer must ensure that a proper review is performed on the financial statements, prior to the submission of the financial statements to the auditors.

29. Non-compliance with laws and regulations could have been prevented had compliance been properly reviewed and monitored. There were number of instances where non-compliance issues were identified during the audit.

OTHER REPORTSPerformance audits

30. The Report of the Auditor-General of South Africa on the readiness of government to report on its performance willbetabledduring2014.TheOfficeofthePremier–NorthernCapewasoneofthe61institutions/departmentsaudited during this audit. The performance audit focused on the following:• Thesystemsandprocessesthatgovernmentdepartmentshaveputinplacetoreportontheirperformance• Theperformancereportingguidanceandoversightgovernmentdepartmentsreceived.

Kimberley31 July 2014


91

Table of Contents

Appropriation Statement 92

Notes to the Appropriation Statement 101

Statement of Financial Performance 103

Statement of Financial Position 104

Statement of Changes in Net Assets 105

Cash Flow Statement 106

Notes to the Annual Financial Statements (including Accounting policies) 107

Annexures 139


92

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2013/14 2012/13

Final Appropriation

Actual Expenditure

Final Appropriation

Actual Expenditure

TOTAL (brought forward)

Reconciliation with statement of financial performance

ADD

Departmental receipts 336 173 -

Aid assistance 187

Actual amounts per statement of financial performance (total revenue)

187,695 157,150

ADD

Aid assistance 187 2,982

Prior year unauthorised expenditure approved without funding

Actual amounts per statement of financial performance (total expenditure)

180,307 154,769

APPROPRIATION STATEMENTfor the year ended 31 March 2014


94

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101

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-C) to the Annual Financial Statements.

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

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

3. Detail on payments for financial assets

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

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

4.1 Per programme Final Appropriation

Actual Expenditure

Variance Variance as a % of Final

Appropriation

R’000 R’000 R’000 R’000

Administration 81,959 79,663 2,296 2.80%

Institutional Development 72,477 71,526 951 1.31%

Policy & Governance 32,736 28,931 3,805 11.62%

4.2 Per economic classification Final Appropriation

Actual Expenditure

Variance Variance as a % of Final

Appropriation

R’000 R’000 R’000 R’000

Current payments

Compensation of employees 93,112 92,992 120 0.13%

Goods and services 71,445 66,448 4,997 6.99%

Transfers and subsidies

Departmental agencies and accounts 309 309 - 0.00%

Non-profit institutions 17,452 17,452 - 0.00%

Households 310 310 - 0.00%

Payments for capital assets

Machinery and equipment 3,720 2,435 1,285 34.54%

Intangible assets 669 19 650 97.16%

Payments for financial assets 155 155 0 0.00%

NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 2014


102

The variance of R 2,296,000 in Program 1 is as a result of furniture and infrastructure expenditure specifically earmarked for the relocation of officials from Templar building to JW Sauer building, which was committed but could not be finalised at year end due to delays in renovations by Transnet Properties. The finalisation of this project was postponed to 31 August 2014 and a rollover of funds has been requested to re-allocate funds in the 2014/15 financial year.

The variance of R 951,000 under Program 2 is attributed to delays in the renewal of Symantec software licences on the part of SITA to procure the service of an approved SITA service provider. As at year end the funds were committed and a rollover of funds were requested from Provincial Treasury for funds to be re-allocated in the 2014/15 financial year.

The variance of R 3,805,000 is attributed to earmarked funds for the Northern Cape Provincial Government 20 year review project, which was committed but not finalised at year end due to delays in the appointment process to ensure compliance with Supply Chain Management processes. Furthermore delays in the delivery of some capital assets contributed to the saving. A rollover request for both occurrences has been submitted to Provincial Treasury to re-allocate these funds during the 2014/15 financial year.

NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 2014


103

Note 2013/14 2012/13

R’000 R’000

REVENUE

Annual appropriation 1 187,172 156,977

Departmental revenue 2 336 173

Aid assistance 3 187 -

TOTAL REVENUE 187,695 157,150

EXPENDITURE

Current expenditure 159,626 135,318

Compensation of employees 4 92,991 83,716

Goods and services 5 66,448 48,620

Aid assistance 3 187 2,982

Transfers and subsidies 18,071 17,000

Transfers and subsidies 7 18,071 17,000

Expenditure for capital assets 2,455 2,275

Tangible assets 8 2,436 849

Intangible assets 8 19 1,426

Payments for financial assets 6 155 176

TOTAL EXPENDITURE 180,307 154,769

SURPLUS/(DEFICIT) FOR THE YEAR 7,388 2,381

Reconciliation of Net Surplus/(Deficit) for the year

Voted funds 7,052 5,190

Departmental revenue and NRF Receipts 2 336 173

Aid assistance 3 - (2,982)

SURPLUS/(DEFICIT) FOR THE YEAR 7,388 2,381

STATEMENT OF FINANCIAL PERFORMANCEfor the year ended 31 March 2014


104

Note 2013/14 2012/13

R’000 R’000

ASSETS

Current assets 7,749 7,401

Unauthorised expenditure 9 - 4,557

Cash and cash equivalents 10 330 5

Prepayments and advances 11 586 598

Receivables 12 6,833 2,241

TOTAL ASSETS 7,749 7,401

LIABILITIES

Current liabilities 7,546 7,198

Voted funds to be surrendered to the Revenue Fund 13 7,052 5,190

Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund 14 475 464

Bank overdraft 15 - 1,544

Payables 16 19 -

TOTAL LIABILITIES 7,546 7,198

NET ASSETS 203 203

Note 2013/14 2012/13

R’000 R’000

Represented by:

Recoverable revenue 203 203

TOTAL 203 203

STATEMENT OF FINANCIAL POSITIONfor the year ended 31 March 2014


105

Note 2013/14 2012/13

R’000 R’000

Recoverable revenue

Opening balance 203 203

Transfers: - -

Closing balance 203 203

TOTAL 203 203

STATEMENT OF CHANGES IN NET ASSETSfor the year ended 31 March 2014


106

Note 2013/14 2012/13

R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 187,495 157,150

Annual appropriated funds received 1.1 187,172 156,977

Departmental revenue received 2 136 173

Aid assistance received 3 187 -

Net (increase)/decrease in working capital (4) 1,046

Surrendered to Revenue Fund (5,515) (3,852)

Surrendered to RDP Fund/Donor - (679)

Current payments (159,626) (135,318)

Payments for financial assets (155) (176)

Transfers and subsidies paid (18,071) (17,000)

Net cash flow available from operating activities 17 4,124 1,171

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for capital assets 8 (2,455) (2,275)

Proceeds from sale of capital assets 2.2 200 -

Net cash flows from investing activities (2,255) (2,275)

CASH FLOWS FROM FINANCING ACTIVITIES

Distribution/dividend received - -

Increase/(decrease) in net assets - -

Increase/(decrease) in non-current payables - -

Net cash flows from financing activities - -

Net increase/(decrease) in cash and cash equivalents 1,869 (1,104)

Cash and cash equivalents at beginning of period (1,539) (435)

Cash and cash equivalents at end of period 18 330 (1,539)

CASH FLOW STATEMENTfor the year ended 31 March 2014


107

ACCOUNTING POLICIESfor 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 currencyAmounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.

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

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

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

7 Revenue

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

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


108

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

the department; and• theamountofrevenuecanbemeasuredreliably.The accrued revenue is measured at the fair value of the consideration receivable.Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents.

8 Expenditure

8.1 Compensation of employees

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

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

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

8.3 Accrued expenditure payableAccrued 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.

8.4 Leases

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

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

the end of the lease term, excluding interest.



109

9 Aid Assistance

9.1 Aid assistance receivedAid assistance received in cash is recognised in the statement of financial performance when received. In-kind aid assistance is recorded in the notes to the financial statements on the date of receipt and is measured at fair value.Aid assistance not spent for the intended purpose and any unutilised funds from aid assistance that are required to be refunded to the donor are recognised as a payable in the statement of financial position.

9.2 Aid assistance paidAid assistance paid is recognised in the statement of financial performance on the date of payment. Aid assistance payments made prior to the receipt of funds are recognised as a receivable in the statement of financial position.

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

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

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

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

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

15 PayablesLoans and receivables are recognised in the statement of financial position at cost.



110


16 Capital Assets

16.1 Immovable capital assetsImmovable 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.

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

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


111


17 Provisions and Contingents

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

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

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

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

18 Unauthorised expenditureUnauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either:• approvedbyParliamentortheProvincialLegislaturewithfundingandtherelatedfundsarereceived;or• approvedbyParliamentor theProvincial Legislaturewithout funding and iswrittenoff against the

appropriation in the statement of financial performance; or• transferredtoreceivablesforrecovery.Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure.

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


112

20 Irregular expenditureIrregular 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.

21 Changes in accounting estimates [Insert the nature and amounts of the changes in accounting estimates for current and future periods (if applicable). If the effect on future periods could not reasonably be determined the fact should be disclosed.]

22 Prior period errors

[Insert the nature and amounts of the errors along with whether the errors were corrected retrospectively. Where the amounts could not be reasonably determined the fact should be disclosed.]

23 Non-adjusting events after the reporting date [Insert the nature of the event and an estimate of its financial effect (or a statement to that effect where such estimate cannot be made) for each material category of non-adjusting event after the reporting date and refer to the relevant note to the financial statements.]

24 Agent-Principal arrangements [Insert a description of the nature, circumstances and terms related to agency-principal arrangements and refer to the relevant note to the financial statements]



113

1. Annual Appropriation

1.1 Annual Appropriation Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for

(Voted funds) for 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 81,959 81,959 - 69,862

Institutional Development 72,477 72,477 - 52,510

Policy & Governance 32,736 32,736 - 34,605

Total 187,172 187,172 - 156,977

2. Departmental revenue

Note 2013/14 2012/13

R’000 R’000

Sales of goods and services other than capital assets 2.1 88 73

Sales of capital assets 2.2 200 -

Transactions in financial assets and liabilities 2.3 48 100

Departmental revenue collected 336 173

2.1 Sales of goods and services other than capital assets

Note 2013/14 2012/13

2 R’000 R’000

Sales of goods and services produced by the department

Other sales 88 73

Total 88 73

NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014


114

2.2 Sale of capital assets

Note 2013/14 2012/13

R’000 R’000

Tangible assets

Machinery and equipment 39 200 -

Total 200 -

2.3 Transactions in financial assets and liabilities2013/14 2012/13

R’000 R’000

Other receipts including Recoverable Revenue 48 100

Total 48 100

3. Aid assistance

3.1 Aid assistance received in cash from RDP

Note 2013/14 2012/13

R’000 R’000

Foreign

Opening Balance - 3,661

Revenue 187 -

Expenditure (187) (2,982)

Current (187) (2,982)

Surrendered to the RDP - (679)

Closing Balance - -

3.2 Total assistance2013/14 2012/13

R’000 R’000

Opening Balance - 3,661

Revenue 187 -

Expenditure (187) (2,982)

Current (187) (2,982)

Surrendered to RDP/Donor - (679)

Closing Balance - -



115


4. Compensation of employees

4.1 Salaries and WagesNote 2013/14 2012/13

R’000 R’000

Basic salary 63,482 56,322

Performance award 434 979

Service Based 117 4

Compensative/circumstantial 1,502 1,484

Other non-pensionable allowances 15,877 14,747

Total 81,412 73,536

4.2 Social contributions

Note 2013/14 2012/13

R’000 R’000

Employer contributions

Pension 7,991 6,893

Medical 3,574 3,275

Bargaining council 14 12

Total 11,579 10,180

Total compensation of employees 92,991 83,716

Average number of employees 245 236


116


5. Goods and services Note 2013/14 2012/13

R’000 R’000

Administrative fees 79 428

Advertising 2,483 912

Capital assets less than R5 000 5.1 190 333

Catering 3,972 3,286

Communication 3,650 4,124

Computer services 5.2 988 1,403

Consultants, contractors and agency/outsourced services 5.3 20,831 6,983

Auditcost–external 5.4 3,630 2,941

Fleet services 320 196

Inventory 5.5 1,206 1,533

Consumables 5.6 2,232 1,228

Operating leases 9,565 10,090

Property payments 5.7 3,621 3,489

Rental and hiring 78 79

Transport provided as part of the departmental activities 336 655

Travel and subsistence 5.8 9,435 9,641

Venues and facilities 2,320 310

Training and development 717 585

Other operating expenditure 5.9 795 404

Total 66,448 48,620

5.1 Capital assets less than R5 000Note 2013/14 2012/13

5 R’000 R’000

Tangible assets

Machinery and equipment 190 333

Intangible assets - -

Total 190 333


117


5.2 Computer servicesNote 2013/14 2012/13

5 R’000 R’000

SITA computer services 979 1,380

External computer service providers 9 23

Total 988 1,403

5.3 Consultants, contractors and agency/outsourced servicesNote 2013/14 2012/13

5 R’000 R’000

Legal costs 63 161

Contractors 2,102 1,050

Agency and support/outsourced services 18,666 5,772

Total 20,831 6,983

5.4 Audit cost – External Note 2013/14 2012/13

5 R’000 R’000

Regularity audits 3,630 2,941

Total 3,630 2,941

5.5 InventoryNote 2013/14 2012/13

5 R’000 R’000

Food and food supplies - 313

Fuel, oil and gas 1,159 837

Materials and supplies 47 28

Other supplies - 355

Total 1,206 1,533

5.6 ConsumablesNote 2013/14 2012/13

5 R’000 R’000

Consumable supplies 1,686 617

Uniform and clothing 3 -

Household supplies 643 -

IT consumables 422 305

Other consumables 618 312

Stationery, printing and office supplies 546 611

Total 2,232 1,228


118

5.7 Property paymentsNote 2013/14 2012/13

5 R’000 R’000

Municipal services 1,510 1,575

Property maintenance and repairs 168 -

Other 1,943 1,914

Total 3,621 3,489

5.8 Travel and subsistenceNote 2013/14 2012/13

5 R’000 R’000

Local 8,354 9,218

Foreign 1,081 423

Total 9,435 9,641

5.9 Other operating expenditureNote 2013/14 2012/13

5 R’000 R’000

Professional bodies, membership and subscription fees 40 2

Resettlement costs 11 -

Other 744 402

Total 795 404

6 Payments for financial assetsNote 2013/14 2012/13

R’000 R’000

Debts written off 6.1 155 176

Total 155 176

6.1 Debts written offNote 2013/14 2012/13

6 R’000 R’000

Nature of debts written off

Staff debt 29 -

Intergovernmental debt 126 176

Total debt written off 155 176



119


7. Transfers and subsidies2013/14 2012/13

R’000 R’000

Note

Departmental agencies and accounts Annex 1A 309 2

Non-profit institutions Annex 1B 17,452 16,621

Households Annex 1C 310 377

Total 18,071 17,000

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

R’000 R’000

Tangible assets 2,436 849

Machinery and equipment 29.1 2,436 849

Intangible assets 19 1,426

Software 30.1 19 1,426

Total 2,455 2,275

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

Voted funds

Aid assistance Total

R’000 R’000 R’000

Tangible assets 2,436 - 2,436

Machinery and equipment 2,436 - 2,436

Intangible assets 19 - 19

Software 19 - 19

Total 2,455 - 2,455


120


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

Voted funds

Aid assistance Total

R’000 R’000 R’000

Tangible assets 849 - 849

Machinery and equipment 849 - 849

Intangible assets 1,426 - 1,426

Software 1,426 - 1,426

Total 2,275 - 2,275

9. Unauthorised expenditure

9.1 Reconciliation of unauthorised expenditureNote 2013/14 2012/13

R’000 R’000

Opening balance 4,557 4,557

As restated 4,557 4,557

Less: Amounts approved by Parliament/Legislature with funding (4,557) -

Unauthorised expenditure awaiting authorisation / written off - 4,557

Analysis of awaiting authorisation per economic classification

Current - 4,557

Total - 4,557

9.2 Analysis of unauthorised expenditure awaiting authorisation per economic classification2013/14 2012/13

R’000 R’000

Current 4,557

Total - 4,557

10. Cash and cash equivalentsNote 2013/14 2012/13

R’000 R’000

Consolidated Paymaster General Account 325 -

Cash on hand 5 5

Total 330 5


121


11. Prepayments and advancesNote 2013/14 2012/13

R’000 R’000

Staff advances 80 -

Prepayments 506 598

Total 586 598

12. Receivables2013/14 2012/13

R’000 R’000 R’000 R’000 R’000

NoteLess than one year

One to three years

Older than three years Total Total

Claims recoverable 12.1Annex 4

5,373 412 - 5,785 1,204

Staff debt 12.2 798 19 231 1,048 1,037

Total 6,171 431 231 6,833 2,241

12.1 Claims recoverableNote 2013/14 2012/13

12 R’000 R’000

National departments 46 323

Provincial departments 5,498 451

Public entities 148 430

Private enterprises 93 -

Total 5,785 1,204

12.2 Staff debtNote 2013/14 2012/13

12 R’000 R’000

Ex-officials 231 271

Current officials 817 751

Deceased officials - 15

Total 1,048 1,037


122

13 Voted funds to be surrendered to the Revenue FundNote 2013/14 2012/13

R’000 R’000


Transfer from statement of financial performance (as restated) 7,052 5,190

Paid during the year (5,190) (3,658)

Closing balance 7,052 5,190

14. Departmental revenue and NRF Receipts to be surrendered to the Revenue FundNote 2013/14 2012/13

R’000 R’000

Opening balance 464 485

Transfer from Statement of Financial Performance (as restated) 336 173

Paid during the year (325) (194)

Closing balance 475 464

15. Bank OverdraftNote 2013/14 2012/13

R’000 R’000

Consolidated Paymaster General Account - 1,544

Total - 1,544

16. Payables – currentNote 2013/14 2012/13

R’000 R’000

Clearing accounts 16.1 19 -

Total 19 -



123


16.1 Clearing accountsNote 2013/14 2012/13

16 R’000 R’000

Suspenseaccount–PERSAL 19 -

Total 19 -

17. Net cash flow available from operating activitiesNote 2013/14 2012/13

R’000 R’000

Net surplus/(deficit) as per Statement of Financial Performance 7,388 2,381

Add back non cash/cash movements not deemed operating activities (3,264) (1,210)

(Increase)/decreaseinreceivables–current (4,592) 2,504

(Increase)/decrease in prepayments and advances 12 (598)

(Increase)/decrease in other current assets 4,557 -

Increase/(decrease)inpayables–current 19 (860)

Proceeds from sale of capital assets (200) -

Expenditure on capital assets 2,455 2,275

Surrenders to Revenue Fund (5,515) (3,852)

Surrenders to RDP Fund/Donor - (679)

Net cash flow generated by operating activities 4,124 1,171

18. Reconciliation of cash and cash equivalents for cash flow purposesNote 2013/14 2012/13

R’000 R’000

Consolidated Paymaster General account 325 (1,544)

Cash on hand 5 5

Total 330 (1,539)


124

19. Contingent liabilities and contingent assets

19.1 Contingent liabilitiesNote 2013/14 2012/13

R’000 R’000

Liable to Nature

Housing loan guarantees Employees Annex 2A 55 110

Claims against the department Annex 2B 3,609 855

Intergovernmental payables (unconfirmed balances) Annex 4 465 926

Total 4,129 1,891

19.2 Contingent assetsNote 2013/14 2012/13

R’000 R’000

Strike 7 March 2012 Annex 2C - 11

Total - 11

20. CommitmentsNote 2013/14 2012/13

R’000 R’000

Current expenditure

Approved and contracted 20,469 8,163

Capital expenditure

Approved and contracted 444 -

Total Commitments 20,913 8,163

The following commitments (R 5,805) is for longer than 1 year:SAS–R804SITA–R3,813Pro-Activehealthsolutions–R20MPCC’s–R1,168Included in the commitments are contracts awarded to travel agents, car rental agency and also a qualifying vetting agency. The contract values of the three service providers are included at nil values.

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014


125


21. Accruals2013/14 2012/13

R’000 R’000

Listed by economic classification

30 Days 30+ Days Total Total

Goods and services 7,755 - 7,755 2,372

Capital assets 1,180 - 1,181 -

Total 8,936 - 8,936 2,372

Note 2013/14 2012/13

R’000 R’000

Listed by programme level

Administration 6,485 1,313

Institutional Development 1,708 967

Policy & Governance 743 92

Total 8,936 2,372

2013/14 2012/13

Note R’000 R’000

Confirmed balances with other departments Annex 4 417 200

Total 417 200

22. Employee benefitsNote 2013/14 2012/13

R’000 R’000

Leave entitlement 2,805 2,592

Service bonus (Thirteenth cheque) 2,415 2,260

Performance awards 835 840

Capped leave commitments 2,037 1,955

Other 91 69

Total 8,183 7,716


126

Included in the amounts of leave entitlement and capped leave commitments are negative balances for both years. The negative balances are as follows:

Note 2013/14 2012/13

R’000 R’000

Leave entitlement 266 330

Capped leave commitments 89 126

Total 355 456

23. Lease commitments

23.1 Operating leases expenditure

2013/14

Specialised military

equipment Land

Buildings and other

fixed structures

Machinery and

equipment Total

Not later than 1 year - - 4,804 3,348 8,152

Later than 1 year and not later than 5 years - - - 865 865

Total lease commitments - - 4,804 4,213 9,017

2012/13


equipment Land

Buildings and other

fixed structures

Machinery and

equipment Total

Not later than 1 year - - 7,837 3,897 11,734


Total lease commitments - - 7,837 4,067 11,904

23.2 Finance leases expenditure**

2013/14


equipment Land

Buildings and other

fixed structures

Machinery and

equipment

Total

Not later than 1 year - - - 605 605


Total lease commitments - - - 1,158 1,158



127


2012/13 Specialised military

equipment Land

Buildings and other

fixed structures

Machinery and

equipment Total

Not later than 1 year - - - 571 571

Later than 1 year and not later than 5 years - - - 1,167 1,167

Total lease commitments - - - 1,738 1,738

Operating lease: A new lease arrangement of 16 photocopy machines was entered into with Minolco trough the National Treasury RT contract.

The finance lease:The commitment relates to the fleet management arrangement between the Office of the Premier and the Northern Cape Fleet Management Trade Entity. The finance lease arrangement with the Northern Cape Fleet Management Trade Entity also gives rise to related party relationship and related party transactions which are provided in detail in Note 25 (Related Parties)

No sub-lease arrangement pertaining to our existing leases.

No purchases/renewal option exist Northern Cape Fleet Management Entity. A renewal option exists pertaining to the lease arrangement with Minolco after the expiry of the first 36 month term.

No restrictions imposed by on the department through any lease agreement (such as restrictions relating to enhancements, repairs & maintenance, sub-leasing and disposal)

No reduction in the lease payments was granted in lieu of actual cash from the sale of the asset in a sale and leaseback arrangement.


128

24. Irregular expenditure

24.1 Reconciliation of irregular expenditureNote 2013/14 2012/13

R’000 R’000


Add:Irregularexpenditure–relatingtocurrentyear 6,780 6,678

Less: Prior year amounts condoned - -

Irregular expenditure awaiting condonation 22,008 15,228

Analysis of awaiting condonation per age classification

Current year 6,780 6,678

Prior years 15,228 8,550

Total 22,008 15,228

24.2 Details of irregular expenditure – current yearIncident Disciplinary steps taken/criminal proceedings 2013/14

R’000

New original tax clearance certificate not obtained after expiry of validity of an old certificate.

Misconduct case: written warning given 1,500

SCM deviations that did not meet the normal SCM definition.

In various instances where non-compliance was unavoidable, a business case will be made to Accounting Officer/condoning authority regarding context and nature of the circumstances that contributed to the occurrence of the irregular expenditure

5,022

Potentially attributable to split to conform with certain due processes.

None 200

Procurement with deregistered companies

Requested National Treasury to blacklist companies 58

Total 6,780



129

25. Related party transactions

Transfer Payments made by the Officer of the Premier2013/14 2012/13

R’000 R’000

18,071 17,000

Total 18,071 17,000

Key Management Personnel

Key management personnel were identified as having a related party relationship as they are having significant influence to the reporting entity (Office of the Premier). The aforesaid personnel are responsible for the strategic direction and operational management of the reporting entity. Furthermore, such key management personnel are entrusted with fudiciary responsibility and significant authority over the reporting entity. Due to its qualitative nature, it was decided to disclose that an arm’s length transaction to the value of R 44,528.00 was concluded between the reporting department and a member of its key management personnel. All appropriate due processes were conformed with in this once-off transaction.

Remuneration of key management personnel is as follows:Payments made Note 2013/14 2012/13

R’000 R’000

13,788 13,743

Total 13,788 13,743

Northern Cape Premier’s Education Trust Fund

The primary objective of the Trust Fund is to make higher education opportunities accessible by providing bursary loans to academically and financially deserving students studying on a full time basis at institutions of Higher learning situated in the Republic of South Africa and are registered for the field of study as determined by the trustees.

In terms of the trust deed, the Board of trustees are subject to prior approval by the Premier of the Northern Cape Province, who is a patron to the Northern Cape Premiers Education Trust Fund.Payments made Note 2013/14 2012/13

R’000 R’000

13,504 12,861

Total 13,504 12,861



130

Mme Re Ka Thusa Trust Fund

The main objective of the fund is to promote the economic empowerment of women in the province through provision of grant allocations to the qualifying beneficiaries. Due to capacity constraints experienced by the Trust, the Office of the Premier assisted the Trust on financial management matters such as Supply Chain Management for 9 months (01 April 2013 to 31 December 2013) for the 2013/14 financial year. Payments made Note 2013/14 2012/13

R’000 R’000

3,948 3,760

Total 3,948 3,760

Northern Cape Fleet Management Trading Entity

In terms of the fleet arrangement with the Northern Cape Fleet Management Trading Entity, the trading entity acquires fleet on behalf of the Provincial Government which it then leases to Provincial Departments. At reporting date, eleven (11) cars were allocated to the Office of the Premier. Payments made to the entity amounts to R 1,027,170.54.

Disclosure relating to other provincial government departments and entities RelatWed party relationship The Office of the Premier has related party relationships with the following provincial departments and provincial

entities due to common control by the Provincial Legislature as follows:

Provincial Departments Agriculture, Land Reform and rural Development Co-operative Governance, Human Settlements and Traditional Affairs Economic Development Education Environment and Nature Conservation Health Northern Cape Provincial Legislature Northern Cape Provincial Treasury Roads and Public Works Social Development Sports, Arts and Culture Transport, Safety and Liaison



131

Provincial Entities Housing Fund Kalahari Kid Corporation (KKC) McGregor Museum Ngwao Boswa Kapa Bokone Northern Cape Arts and Culture Council Northern Cape Economic Development, Trade and Investment Promotion (NCEDA) Northern Cape Gambling Board Northern Cape Liquor Board Northern Cape Political Party Fund Northern Cape Tourism Authority

Related party transactions There were no related party transactions concluded with the aforementioned related parties other than those

specifically disclosed in separate sub-headings above.

26. Key management personnel

No. of Individuals

2013/14 2012/13

R’000 R’000

Political office bearers (provide detail below) 2 2,214 1,888

Officials:

Level 15 to 16 4 3,757 4,305

Level 14 (incl. CFO if at a lower level) 9 7,817 7,550

Total 13,788 13,743

27. Provisions2013/14 2012/13

R’000 R’000

Groupwise licences - 222

Microsoft licences 214 -

Litigation 1,037 21

Total 1,251 243



132

27.1 Reconciliation of movement in provisions – 2013/14

Groupwise licences

Litigation Microsoft licences

Total provisions

R’000 R’000 R’000 R’000

Opening balance 222 21 0 243

Provisions raised - 968 214 1,182

Settlement of provision without cost to the department (222) (6) - (228)

Change in provision due to change is estimation inputs - 54 - 54

Closing balance - 1,037 214 1,251

LitigationThis provision relates to legal fees and other probable litigation fees whose obligating events are claims that have been logged against the Office of the Premier at reporting date through its lawyers. These claims are in various stages of the court roll. Accumulated legal knowledge and experience have been used in the estimation of the aforesaid amounts. There is uncertainty on the payment timing of the aforementioned provisions due to certain dependencies such as the court roll etc.

Microsoft licencesThis provision relates to Microsoft licences that were downloaded and used for certain computer equipment during the financial year. The uncertainty pertaining this provision relates to payment timing most probable during the course of the next two financial years.

28. Adjusting events after reporting date

During the post balance sheet period, a final settlement of R 699,334.50 was reached by both affected parties on legal disputes that existed at balance sheet date and was in its final stages of being settled. The settlement was a prudent measure to avoid escalation of costs on the issue.

The impact of the aforementioned post balance sheet event at financial statement level is an upward adjustment of the specific provision on the dispute raised at reporting date to R 699,344.50 to ensure fair presentation. The legal provision that was initially under-provided for at reporting date based on available information at the time. Refer to note 27, Provisions.



133

2013/14

Nature of event R’000

Upward of legal Adjustment Provision 699

Total 699

29. Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Opening balance

Curr Year Adjust-ments

to prior year balances

Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 16,586 1,932 (1,425) 17,093

Transport assets 2,631 - 856 (1,078) 2,409

Computer equipment 7,702 - 510 (347) 7,865

Furniture and office equipment 5,647 - 566 - 6.213

Other machinery and equipment 606 - - - 606

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 16,586 - 1,932 (1,425) 17,093

A transport asset to the value of R 1,131,017.20 was received by the reporting date and has been accrued accordingly.



134

29.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Opening balance




R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 2,436 - (504) - 1,932

Transport assets 1,360 - (504) - 856

Computer equipment 510 - - - 510

Furniture and office equipment 566 - - - 566

Other machinery and equipment - - - - -

TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 2,436 - (504) - 1,932

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

MACHINERY AND EQUIPMENT - 1,425 1,425 200

Transport assets - 1,078 1,078 200

Computer equipment - 347 347 -

TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS - 1,425 1,425 200



135


29.3 Movement for 2012/13Opening balance




R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 16,144 - 745 (303) 16,586

Transport assets 2,631 - - - 2,631

Computer equipment 7,480 - 473 (251) 7,702

Furniture and office equipment 5,427 - 272 (52) 5,647

Other machinery and equipment 606 - - - 606

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 16,144 - 745 (303) 16,586

29.4 Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2014


assets

Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

R’000 R’000 R’000 R’000 R’000 R’000

Opening balance - - - 7,098 - 7,098

Additions - - - 189 - 189

Disposals - - - (117) - (117)

TOTAL MINOR ASSETS - - - 7,170 - 7,170


assets

Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

Number of minor assets at cost - - - 3,804 - 3,804

TOTAL NUMBER OF MINOR ASSETS - - - 3,804 - 3,804


136

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2013


assets

Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

R’000 R’000 R’000 R’000 R’000 R’000

Opening balance - - - 7116 - 7116

Curr Year Adjustments to Prior Year balances

- - - (15) - (15)

Additions - - - 145 - 145

Disposals - - - (148) - (148)

TOTAL MINOR ASSETS - - - 7,098 - 7,098


assets

Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

Number of minor assets at cost - - - 3,782 - 3,782

TOTAL NUMBER OF MINOR ASSETS - - - 3,782 - 3,782

30. Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Opening balance

Current Year Adjust-ments



R’000 R’000 R’000 R’000 R’000

SOFTWARE 15,512 - 19 - 15,531

TOTAL INTANGIBLE CAPITAL ASSETS 15,512 - 19 - 15,531



137


30.1 Additions

ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Opening balance




R’000 R’000 R’000 R’000 R’000

SOFTWARE 19 - - - 19

TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS 19 - - - 19

30.2 Movement for 2012/13

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Opening balance




R’000 R’000 R’000 R’000 R’000

SOFTWARE 14,745 (659) 1,426 - 15,512

TOTAL INTANGIBLE CAPITAL ASSETS 14,745 (659) 1,426 - 15,512


138

31. Transfer of functions

With effect from 01 April 2013, Provincial Human Resources Development (HRD) was transferred from Department of Education to the Office of the Premier. The rationale of the aforementioned transfer was to raise the profile of the function to the strategic level of the Office of the Premier which as an apex of provincial government thereby ensuring better coordination of the provincial HRD strategy, refer to Executive Council Resolution 008/2012(02).

• Threeemployeesweretransferredinwithanimpacttotheopeningbalanceoftheemployeebenefitsnote.Refer to note 22 in the annual financial statements.

• ThebudgetrelatingtothetransferredfunctionwasadjustedcentrallythroughtheProvincialTreasurytocoincide with the 2013/14 budget allocation letter. Therefore there is no financial impact of the budget transfer of function in the 2013/14mappropriation statement.

Notes

Note Bal per dept 2012/13

AFS before transfer

Functions per dept

(transferred) / received

Functions per dept


Functions per dept


2012/13 Bal after transfer

2012/13 2012/13 2012/13 2012/13 2012/13

R’000 R’000 R’000 R’000 R’000

Employee benefits 7,716 116 - - 7,832



139

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014

ANNEXURE 1ASTATEMENT 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

South African Broadcasting Corporation

3 - - 3 3 100% 2

Public Sector Education & Training Authority

306 - - 306 306 100% -

309 - - 309 309 100% 2

The transfer to Public Sector Education & Training Authority (PSETA) of R 306,000.00 has not been utilised at reporting date. However, a written commitment was received from PSETA indicating that the aforesaid transfer has been committed for discretionary projects that will be rolled out during the 2014/15 financial year.

The R 3,000.00 to South African Broadcasting Corporation relates to licences pertaining to the 2013/14 financial year.


140

ANNEXURE 1BSTATEMENT OF TRANSFERS TO NON-PROFIT INSTITUTIONS

NON-PROFIT INSTITUTIONS

TRANSFER ALLOCATION EXPENDITURE 2012/13

AdjustedApprop-riation

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

Premiers Bursary Trust Fund 13,504 - - 13,504 13,504 100% 12,861

Mme Re Ka Thusa Trust Fund 3,948 - - 3,948 3,948 100% 3,760

Total 17,452 - - 17,452 17,452 100% 16,621



141


ANNEXURE 1CSTATEMENT 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 pay-outs 310 - - 310 310 100% 377

Total 310 - - 310 310 100% 377


142

ANNEXURE 1DSTATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED

NAME OF ORGANISATION NATURE OF GIFT, DONATION OR SPONSORSHIP

2013/14 2012/13

R’000 R’000

Received in cash

ABSA State of the Province Address - 200

De Beers State of the Province Address - 150

Kumba Iron Ore State of the Province Address - 200

Belgorosite TNA Breakfast 3 -

Old Mutual TNA Breakfast 9 -

ABSA TNA Breakfast 89 -

Kumba Iron Ore TNA Breakfast 174 -

ABSA Batho Pele Awards 30 -

Subtotal 305 550

Received in kind

FNB TNA Breakfast 30 -

Standard Bank TNA Breakfast 100 -

Subtotal 130 -

TOTAL 435 550



143

ANNEXURE 1ESTATEMENT OF AID ASSISTANCE RECEIVED

NAME OF DONOR PURPOSE

OPENING CLOSING

BALANCE REVENUEEXPENDI-

TURE BALANCE

R’000 R’000 R’000 R’000

Received in cash

FINLAND–INSPIRE INSPIRE Project - 187 (187) -

Subtotal - 187 (187) -

TOTAL - 187 (187) -



144

ANNEXURE 1FSTATEMENT 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

Paid in cash

Gifts, donations and sponsorship made from the Discretionary Fund 393 5

Financial Assistance 65 30

Subtotal 458 35

Made in kind

Gifts, donations and sponsorship made from the Discretionary Fund 1,419 2,204

Corporate gifts 56 90

Social responsibility 332 11

Funeral assistance 59 139

Farewell gifts 8 15

Mothers & Fathers day gifts 34 27

Hospital hampers 5 -

Christmas gifts 9 -

Subtotal 1,922 2,486

TOTAL 2,380 2,521



145

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146

ANNEXURE 2BSTATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 20ZZ

Nature of Liability

Liabilities incurred

during the year

Liabilities paid/

cancelled/reduced

during the year

Liabilities recoverable

(Provide details

hereunder)

Opening Closing

Balance Balance

1 April 2013 31 March 2014

R’000 R’000 R’000 R’000 R’000

Claims against the department

Damages 855 2,904 (150) - 3,609

Subtotal 855 2,904 (150) - 3,609

TOTAL 855 2,904 (150) - 3,609



147

ANNEXURE 2CSTATEMENT OF CONTINGENT ASSET AS AT 31 MARCH 2014

Nature of Liability

Assets incurred

during the year

Assets paid/cancelled/

reduced during the

year

Assets recoverable

(Provide details

hereunder)

Opening Closing

Balance Balance

1 April 201331 March

2014

R’000 R’000 R’000 R’000 R’000

Claims against the department

Salaries potentially recoverable 11 - 11 - -

Subtotal 11 - 11 - -

TOTAL 11 - 11 - -



148

ANNEXURE 3CLAIMES 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

Department

Agriculture - - 313 - 313 -

CoGHSTA 391 16 - - 391 16

Economic Development 313 - - - 313 -

Education 76 - 313 - 389 -

Environment & Nature Conservation 355 - - - 355 -

Health - - 1,234 - 1,234 -

Roads & Public Works 397 - 396 264 793 264

Social Development - - 313 - 313 -

Sports Arts & Culture - - 313 - 313 -

Transport, Safety & Liaison - - 313 - 313 -

Treasury 130 171 643 - 773 171

Foreign Affairs - 197 - 126 - 323

Rural Development - - 46 - 46 -

1,662 384 3,884 390 5,546 774

Other Government Entities

NYDA - - 148 146 148 146

NCEDA - - - 284 - 284

MSCC - - 89 - 89 -

Lefatshe - - 2 - 2 -

- - 239 430 239 430

TOTAL 1,662 384 4,123 820 5,785 1,204



149

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

DEPARTMENTS

Current

Roads & Public Works 193 - 142 142 335 142

Legislature - - 2 9 2 9

Treasury - - 136 135 136 135

Environmental Affairs 33 - 20 135 53 135

Economic Development - - 126 126 126 126

SAPS - 32 - - - 32

Labour - - - 75 - 75

PALAMA - - - 284 - 284

Justice 191 168 39 20 230 188

Subtotal 417 200 465 926 882 1,126

Total 417 200 465 926 882 1,126



150

ANNEXURE 5INVENTORY

Inventory Note Quantity 2013/14 Quantity 2012/13

R’000 R’000

Opening balance - - 851 52

Add: Additions/Purchases - Cash - - 385,669 2,449

(Less): Disposals - - (14) (10)

(Less): Issues - - (386,101) (2,439)

Closing balance - - 405 52

To comply with the National Treasury guide, items that we classified as Inventory in the prior year are now classified as consumables under note 5.5 and 5.6.



151

Notes


152

Notes

Documents

Office of the Premier Annual Report 2013/2014€¦ · Northern Cape Office of the Premier Vote 1 Annual Report for 2013/14 Financial Year 6 A.3 Foreword by the Premier This 2013/14