2019 Eastern Cape Provincial Legislature Annual Report

EASTERN CAPE PROVINCIAL LEGISLATURE ANNUAL REPORT - 2018/19 FINANCIAL YEAR 1

EASTERN CAPE PROVINCIAL LEGISLATURE

ANNUAL REPORT

2018/19 FINANCIAL YEAR

EASTERN CAPE PROVINCIAL LEGISLATURE ANNUAL REPORT - 2018/19 FINANCIAL YEAR2

SUBMISSION OF THE 2018/19 ANNUAL REPORT BY SECRETARY TO THE LEGISLATURE

I am honoured to present the Annual Report of the Eastern Cape Provincial Legislature for the financial year 2018/19, which is in accordance with Section 59 of the Financial Management of Parliament and Provincial Legislatures Act, 2009 (Act No. 10 of 2009).

Mr V.W. MapolisaSecretary to the Legislature


OFFICIAL SIGN OFF

Ms N MosanaGeneral Manager: Office of the Secretary

Mr P.A. HobongwanaExecutive Manager: Corporate Services

Ms N. MeneExecutive Manager: Oversight

Adv L.I. NetshitumbuExecutive Manager: Legal and Procedural Services

Ms N. NgcakaniChief Financial Officer



TABLE OF CONTENTSi. Foreword by the Executive Authority .......................................................................................................................6

ii. Overview of the Accounting Officer ..........................................................................................................................8

PART A GENERAL INFORMATION .............................................................................................................................. 9

1.1. Vision, Mission & Values .................................................................................................................................11

1.2. Legislative and other Mandates ......................................................................................................................12

1.3. Organizational Structure .................................................................................................................................14

1.4. Overview of the service delivery environment .................................................................................................15

PART B INFORMATION ON PREDETERMINED OBJECTIVES ..................................................................................... 17

2.1. Strategic Outcome Oriented Goals .................................................................................................................19

2.2. Performance Information by Programmes ......................................................................................................19

2.3. Programme 1 – Administration ........................................................................................................................20

2.3.1. Office of the Speaker ..........................................................................................................................20

2.3.2. Office of the Secretary ........................................................................................................................202.3.2.1. Office support to the Secretary .........................................................................................202.3.2.2. Strategy, Monitoring and Evaluation .................................................................................212.3.2.3. Special Programmes .........................................................................................................212.3.2.4. Communications ................................................................................................................222.3.2.5. Media Management ...........................................................................................................222.3.2.6. International Relations, Protocol and Ceremonial Services ..............................................22

2.3.3. Financial Management .......................................................................................................................232.3.3.1. Finance ..............................................................................................................................232.3.3.2. Supply Chain Management ..............................................................................................242.3.3.3. Risk Management and Compliance ..................................................................................24

2.3.4. Integrated Human Resource Management.........................................................................................252.3.4.1. Organisational and Human Resource Development .........................................................252.3.4.2. Human Resource Management .........................................................................................252.3.4.3. Wellness .............................................................................................................................26

2.3.5 Employee Relations ................................................................................................................................26

2.3.6. Safety and Security Services ................................................................................................................27

2.3.7 Integrated Information and Technical Services ......................................................................................272.3.7.1 Information Technology ........................................................................................................272.3.7.2 Library and Information Services ...........................................................................................282.3.7.2 Office Support and Household ..............................................................................................28

2.4. Programme 2: BENEFITS FOR MEMBERS.....................................................................................................29

2.4.1. Facilities and Benefits for Members ...................................................................................................29

2.5. Programme 3: Parliamentary Services ............................................................................................................30

2.5.1. Oversight Services ..............................................................................................................................302.5.1.1. Committee Services...........................................................................................................302.5.1.2. Research ...........................................................................................................................312.5.1.3. National Council of Provinces (NCoP) ...............................................................................32

2.5.2. Legal and Procedural Services ...........................................................................................................322.5.2.1. Public Participation, Petitions and Education....................................................................322.5.2.2. House Proceedings ...........................................................................................................332.5.2.3. Hansard Language Services and Questions .....................................................................332.5.2.4. Legal Services....................................................................................................................34


PART C GOVERNANCE ............................................................................................................................................. 35

3.1. REPORT OF THE ACCOUNTING OFFICER FOR THE FINANCIAL YEAR ENDED 31 MARCH 2018/19 .......37

3.2. AUDIT COMMITTEE REPORT ........................................................................................................................40

PART D HUMAN RESOURCE MANAGEMENT ............................................................................................................ 45

4.1. Human Resource Oversight Statistics ............................................................................................................45

PART E FINANCIAL INFORMATION .......................................................................................................................... 67

5.1. Report of the Auditor General .........................................................................................................................69

5.2. Annual Financial Statements ...........................................................................................................................76

PART F INFORMATION FOR POLITICAL PARTIES ................................................................................................... 133

Report of the African National Congress .............................................................................................................135

Report of the Democratic Alliance ........................................................................................................................138

Report of the Congress of the People ..................................................................................................................140

Report of the United Democratic Movement ........................................................................................................142


SPEAKER’S FOREWORD

The financial year 2018/19 marked the end of the Legislature’s Fifth Term and the implementation of its 2014-2019 Strategic Plan. The Plan was anchored on the electoral mandate of the 2014 general elections as well as the obligation placed on the Legislature by the Constitution, that of oversight, law-making and public participation.

It was also during this period, that we joined the nation, the continent and the international community, to celebrate the centenary of our late struggle stalwarts, uTat’uNelson Mandela and uMam’uAlbertina Sisulu. It was with a great sense of pride that we celebrated these two international icons who belong to the Home of Legends, our beautiful province of the Eastern Cape and whose contribution to humanity helped to change the world for the better. We hosted the 2018 Annual Raymond Mhlaba Memorial Lecture in their honour and as part of our public participation programme.

Recognising that 2018/19 was the last financial year before general elections, we ensured that our programmes were biased towards spending more time with the communities.

The implementation of a targeted oversight strategy which included among others, the amendment of the schools readiness oversight programme yielded positive results during the period under review. Through the allocation of more time for schools visits, deploying all Members of the Legislature and doing follow up visits, we were able to see the national certificate results reach 70 percent in the Eastern Cape in the 2018 academic year.

The decision of the Rules Committee to change the status of the Committee on Law Review from Ad Hoc to Standing Committee was in recognition of the slow pace of the law-making process. We trust that the results of this decision will see more impact in the Sixth Term.

The Ad Hoc Committee of the Amendment of Money Bills and Related Matters Bill has made significant progress during the period under review and will be revived in the Sixth Legislature in order to give effect to the Constitution on the Legislature’s role in the allocation of public resources in the Eastern Cape.

The Legislature processed 18 bills referred to it by the National Council of Provinces (NCOP) between 1 April 2018 and 31 March 2019. This had a significant impact on our limited budget and resulted in us requesting an additional allocation in order to ensure that the process was beyond any legal scrutiny with respect to public participation. Five provincial bills were considered over the same period.

The 12th Annual Taking Legislature to the People, which is one of our mainstay programmes, was held at Mqhele Village in Elliotdale in partnership with the Mbhashe and Mnquma Local Municipalities as well as the Amathole District Municipality. This was also part of the undertaking made in the Policy Speech to spend more time with communities. This followed our engagements as the Provincial Speakers’ Forum whose objective was to strengthen collaboration and public participation.

One of the key decisions taken by the Legislature was to incorporate voter education into its Public Education Programme. Since 2016, voter education has been part of the programmes and activities of the Legislature. In February 2019, another public education programme involving Members was organised throughout the province with the focus being on Voter Education. The objective of the programme was to educate eligible voters on the obligation to participate in the elections and to encourage voter turnout in the upcoming National and Provincial Elections on 8 May 2019.


The Legislative Sector through the Speakers’ Forum, held engagements with the President of the Republic of South Africa, Mr Cyril Ramaphosa, to address the budget protocol process for the Sector which impacted negatively on the budget allocation for the legislative arm of the state. These are set to be pursued further in the Sixth Term.

We owe our gratitude to all the oversight and governance structures for their support and the administration in ensuring that good governance and accountability as we achieved an unqualified audit opinion during the period under review.

H SAULS-AUGUST (MPL)SPEAKER OF THE EC PROVINCIAL LEGISLATUREEXECUTIVE AUTHORITY


SECRETARY’S OVERVIEW

The Fifth Term of the Legislature is at the end as we reflect on the past five years of driving the process of making laws, holding government to account and maintaining the Legislature’s agency for social dialogue and enhancing democracy through public participation.

The last State of the Province Address (SOPA) for the term, which was held in February 2019, was also a reflection of the milestones achieved during this term of government. While acknowledging the many challenges the province faces, we should commend the progress made since the beginning of the Term. The Legislature has remained a catalyst for the realisation of the developmental state which should serve its people with excellence. Good governance and performance management are some of the improvements we have seen over the past five years.

We facilitated the End of the Term Workshop, in order to prepare our elected representatives for the transition. A report was tabled during the Workshop, detailing all the work that has taken place since 2014. The report also highlighted some of the work that is still outstanding. For our part as the administration, we had to appreciate that we are the bridge between the Fifth and the Sixth Term and the incoming elected representatives would rely on our expertise for guidance. A programme has been put in place to ensure a seamless transition and the continuation of some of the work that has not yet been completed such as the finalisation of the ICT infrastructure upgrade, the Enterprise Resource Planning implementation and the Money Deals Amendment Procedure legislation.

Despite this major task of transitional work ahead of us and the absence of accounting and other reporting systems, we still had to continue with our normal responsibilities such as the submission of the annual financial statements and performance report for auditing in line with the requirements of the Financial Management of Parliament and Provincial Legislatures Act (FMPPLA). Our ability to successfully carry out all these responsibilities with diligence and precision is what makes this Legislature work. We are pleased that we have achieved an unqualified audit opinion during the period under review which is a demonstration of commitment to clean governance on our part.

Previously we said, that the expertise we possess and for which we, as Legislature employees have been hired to do, must create an enabling environment for quality oversight, law-making and public participation. For our part we are continuously seeking ways to ensure that the Legislature’s contribution to society is in keeping with its justification for existence which is based in the Constitution.

I wish to thank the Rules and the Executive Committees for the work done during the 2018/19 financial year, the Legislature Oversight Committee and the Audit Committee as well the Legislature management and staff for ensuring a successful year.



PART AGENERAL INFROMATION



1. GENERAL INFORMATION

VISION, MISSION AND VALUES

VISION

‘A People’s Assembly for good governance to realise service excellence’

MISSION STATEMENT

To conduct oversight that will ensure accountability of the provincial government to the people of the Province;

To pass laws that will ensure that citizens’ right are upheld;

To conduct public outreach and education programmes that will ensure meaningful participation of the public in government programs;

To foster relations with local and international oversight bodies that will ensure sharing knowledge and best practices.

VALUES

Excellence:Discharging our responsibilities with utmost care and offering the highest levels of service to those we serve;

Integrity: Pursuing ethical practices by being open, honest, transparent and consistent in our actions;

Commitment: Focusing on achieving our goals without let or hindrance;

Professionalism:Conducting our business with our stakeholders with highest levels of diligence, competence and responsibility;

Accountability: Accepting full responsibility for our actions or inactions and consequences thereof;

Loyalty Espousing the principles and ethos enshrined in the Constitution of the Republic of South Africa.


1.2 Legislative and other mandates

a. Constitutional Mandate

The Eastern Cape Provincial Legislature derives its mandate from the Constitution in terms of the following clauses:-

1. Section 114 provides that:-

(1) In exercising its legislative power, a provincial legislature may—

(a) consider, pass, amend or reject any Bill before the legislature; and

(b) initiate or prepare legislation, except money Bills.

(2) A provincial legislature must provide for mechanisms—

(a) to ensure that all provincial executive organs of state in the province are accountable to it; and

(b) to maintain oversight of—

(i) the exercise of provincial executive authority in the province, including the implementation of legislation; and

(ii) any provincial organ of state.

2. Section 118 prescribes that;

(1) A provincial legislature must-

(a) facilitate public involvement in the legislative and other processes of the legislature and its committees; and

(b) conduct its business in an open manner, and hold its sittings, and those of its committees, in public, but reasonable measures may be taken—

(i) to regulate public access, including access of the media, to the legislature and its committees; and

(ii) to provide for the searching of any person and, where appropriate, the refusal of entry to, or the removal of, any person.

(2) A provincial legislature may not exclude the public, including the media, from a sitting of a committee unless it is reasonable and justifiable to do so in an open and democratic society.

b. Legislative Mandates

In addition to the above, there are various pieces of legislation that govern or have direct bearing on the programmes and activities of the Legislature including:

• Evidence and Information Before the Eastern Cape Provincial Legislature Act, 2007 (Act No 4 of 2009)

• Financial Management of Parliament and Provincial Legislature Act, 2009 (Act No 10 of 2009)

• Remuneration of Public Office Bearers Act, 1998 (Act No 20 of 1998)

• Mandating Procedures of Provinces Act, 2008 (Act No 52 of 2008)

• Powers, Privileges and Immunities of Parliament and Provincial Legislatures Act, 2004 (Act No 4 of 2004)

• Public Finance Management Act, 1999 (Act No 1 of 1999)

• Basic Conditions of Employment Act, 1997 (Act No 75 of 1997)

• Labour Relations Act, 1995 (Act 66 of 1995)


• Employment Equity Act, 1998 (Act No 55 of 1998)

• Skills Development Act 1998 (Act No 97 of 1998)

• Occupational Health and Safety Act, 1993 (Act No 85 of 1993)

c. Policy Mandates

The business and operations of the Legislature are further regulated by a number of policy directives, including (among others):

• Standing Rules of the Eastern Cape Legislature which provide for the powers, duties, functions and procedures of different legislature structures.

• Ministerial Handbook, adopted by cabinet on February 7, 2007, which provides for office complements and entitlements for the Speaker and Deputy Speaker.

• Rules and Executive Committee Policy pronouncements relating to matters concerning the Legislature.

• Adopted policies of the Legislature.

d. Relevant Court Ruling

The key court ruling regarding the legislative and policy mandate of the legislature are contained in the judgments of the Constitutional Court in:

• Premier: Limpopo Province v Speaker: Limpopo Provincial Legislature and others (CCT 94/10). [2011] ZACC 25.

• Land Access Movement of South Africa and Others v Chairperson of the National Council of Provinces and Others (CCT 40/15) [2016] ZACC 22.

• United Democratic Movement v Speaker of the National Assembly and Others (CCT 89/17 [2017] ZACC 21.


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1.4 Overview of the Service Delivery Environment

The 2018/19 financial year has been a very short year as this is the year on which we were building up towards the national general elections. The Legislature programme had to be condensed in order to allow other activities that were necessary for the build up towards the national general elections.

In order to contribute towards the successful national general elections, we intensified our public participation and education programs. We had successful public education programmes across the districts in the Province through which the Legislature contributed to participatory democracy and created awareness around the national general elections.

In order to encourage the young people to participate in the national general elections, we convened a Youth Parliament which was preceded by the district workshops across the Province. The district workshop were attended by over 1000 youth in each district in the Province and this culminated in the plenary at the Legislature.

Our Public Participation and Petitions Committee (Petitions Committee) was also hard at work during the year under review. The rapporteur system adopted by the Petitions Committee has helped in ensuring that we have tentacles across the Province and we are proud to mention that the Petitions Committee was able to table a report to the House every quarter and in the process over 200 petitions were finalised.

The Annual Taking Legislature to the People, which is one of our mainstay programmes, was held at Mqhele Village in Elliotdale in partnership with the Mbhashe and Mnquma Local Municipalities as well as the Amathole District Municipality. The Programme’s impact in the area was generally positive and demonstrated the important role the Legislature plays in encouraging public participation.

The implementation of a targeted oversight strategy which included among others, the amendment of the schools readiness oversight programme yielded positive results during the period under review. Through the allocation of more time for schools visits, deploying all Members of the Legislature and doing follow up visits, we were able to see the national certificate results reach 70 percent in the Eastern Cape in the 2018 academic year.

There was more work conducted through research reports on site visits, thus exceeding the target. This information was used to enhance the Legislature’s oversight processes.

Despite the congested programme of the Legislature, normal oversight business was conducted over all the Departments and all provincial organs of state.

Since its transformation to a permanent status, the Standing Committee of Law Review has started to improve the law review process in the Legislature. It is the intention of the Sixth Legislature to accelerate the law review process in order to ensure an effective law-making process.

The Ad Hoc Committee of the Amendment of Money Bills and Related Matters Bill has made significant progress during the period under review and will be revived in the Sixth Legislature in order to give effect to the Constitution on the Legislature’s role in the allocation of public resources in the Eastern Cape.

The Legislature processed 23 bills referred to it by the national and provincial bills between 1 April 2018 and 31 March 2019. This was done despite having a significantly reduced budget. An additional allocation was requested to ensure a proper public participation process in the consideration of the bills.



PART BPERFORMANCE INFORMATION



2. PART B PERFORMANCE INFORMATION

2.1 STRATEGIC OUTCOME ORIENTED GOALS

The table below reflects the strategic goals and objectives, which are aligned to the vision of the Legislature. These strategic goals and objectives serve as the measuring tool against the performance of the Institution.

Strategic Goal 1: Strengthened oversight role of the legislature

Strategic Objective 1.1: Full implementation of the Eastern Cape Legislature Oversight Model

Strategic Objective 1.2: Strengthen relations with constitutional organs and relevant stakeholders

Strategic Goal 2: Effective Law Making

Strategic Objective 2.1: Effective participation of the legislature in the national law making processes

Strategic Objective 2.2: Enhance the capacity of the legislature to make, amend and pass laws

Strategic Goal 3: Deepened participatory democracy

Strategic Objective 3.1 Enhance the mechanisms to promote public involvement in government processes

Strategic Objective 3.2: Coordinate and streamline constituency work into the legislature programme

Strategic Goal 4 Strengthened good governance

Strategic Objectives 4.1: Sound corporate governance through effective internal control environment.

Strategic Objectives 4.2: Provision of adequate strategic and technical support to achieve organisational goals

2.2 PERFORMANCE INFORMATION BY PROGRAMME

Programme Performance Information is an institutional tool that measures on how well the institution is performing against the planned targets in line with the strategic goals and objectives. It plays a key effective management role on planning, budgeting, monitoring and reporting in ensuring accountability. The performance of the institution under the current financial review is reflected through the programmes below.

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d

4 re

ports

on

spec

ial

prog

ram

mes

mai

nstre

amin

g co

mpi

led

-

Num

ber o

f rep

orts

on

Com

mon

wea

lth W

omen

Pa

rliam

enta

rians

’ pro

gram

mes

con

duct

edQu

arte

rly4

repo

rts o

n Co

mm

onw

ealth

W

omen

Par

liam

enta

rians

’ pr

ogra

mm

es c

ondu

cted

4 re

ports

on

Com

mon

wea

lth

Wom

en P

arlia

men

taria

ns’

prog

ram

mes

co

nduc

ted

-


2.3.

2.4

Com

mun

icat

ions

Stra

tegi

c Ob

ject

ive

Enha

nce

the

mec

hani

sms

to p

rom

ote

publ

ic in

volv

emen

t in

legi

slat

ive

proc

esse

s

Perf

orm

ance

Indi

cato

rRe

port

ing

perio

dAc

tual

per

form

ance

aga

inst

targ

et

Annu

al T

arge

t 201

8/19

Actu

alDe

viat

ion

Expl

anat

ion

1Nu

mbe

r of r

epor

ts o

n pu

blic

ity in

terv

entio

ns u

nder

take

nQu

arte

rly4

repo

rts o

n pu

blic

ity

inte

rven

tions

und

erta

ken

4 re

ports

on

publ

icity

in

terv

entio

ns u

nder

take

n w

ere

com

pile

d

-

2Nu

mbe

r of r

epor

ts o

n br

andi

ng a

nd m

arke

ting

inte

rven

tions

un

derta

ken

Quar

terly

4 re

ports

on

bran

ding

and

m

arke

ting

inte

rven

tions

un

derta

ken

4 re

ports

on

bran

ding

and

m

arke

ting

inte

rven

tions

un

derta

ken

wer

e co

mpi

led

-

3Nu

mbe

r of r

epor

ts o

n in

tern

al c

omm

unic

atio

ns to

ols

utili

sed

Quar

terly

4 re

ports

on

inte

rnal

co

mm

unic

atio

ns to

ols

utili

sed

4 re

ports

on

inte

rnal

co

mm

unic

atio

ns to

ols

utili

sed

wer

e co

mpi

led

-

2.3.

2.5

Med

ia M

anag

emen

t

Stra

tegi

c Ob

ject

ive

Enha

nce

the

mec

hani

sms

to p

rom

ote

publ

ic in

volv

emen

t in

legi

slat

ive

proc

esse

s

Perf

orm

ance

Indi

cato

rRe

port

ing

perio

dAc

tual

per

form

ance

aga

inst

targ

et

Annu

al T

arge

t 201

8/19

Actu

alDe

viat

ion

Expl

anat

ion

1Nu

mbe

r of r

epor

ts o

n m

edia

inte

rven

tions

util

ised

Quar

terly

4 re

ports

on

med

ia

inte

rven

tions

util

ised

4 re

ports

on

med

ia

inte

rven

tions

util

ised

wer

e co

mpi

led

-

2.3.

2.6

Inte

rnat

iona

l Rel

atio

ns, P

roto

col a

nd C

erem

onia

l Ser

vice

s

Stra

tegi

c Ob

ject

ive

Prov

isio

n of

ade

quat

e st

rate

gic

and

tech

nica

l sup

port

to a

chie

ve o

rgan

isat

iona

l goa

ls

Perf

orm

ance

Indi

cato

rRe

port

ing

perio

dAn

nual

Tar

get 2

018/

19Ac

tual

per

form

ance

aga

inst

targ

et

Actu

alDe

viat

ion

Expl

anat

ion

1Nu

mbe

r rep

orts

on

inte

rnat

iona

l eng

agem

ents

coo

rdin

ated

Quar

terly

4 re

ports

on

inte

rnat

iona

l en

gage

men

ts c

oord

inat

ed4

repo

rts o

n in

tern

atio

nal

enga

gem

ents

coo

rdin

ated

-

2Nu

mbe

r of r

epor

ts o

n pr

otoc

ol a

nd c

erem

onia

l ser

vice

s pr

ovid

edQu

arte

rly4

repo

rts o

n pr

otoc

ol a

nd

cere

mon

ial s

ervi

ces

prov

ided

4 re

ports

on

prot

ocol

and

ce

rem

onia

l ser

vice

s pr

ovid

ed-


2.3.

3 Fi

nanc

ial M

anag

emen

t

2.3.

3.1

Fina

nce

Stra

tegi

c Ob

ject

ive

Prov

isio

n of

ade

quat

e st

rate

gic

and

tech

nica

l sup

port

to a

chie

ve o

rgan

isat

iona

l goa

ls

Perf

orm

ance

Indi

cato

rRe

port

ing

perio

dAc

tual

per

form

ance

aga

inst

targ

et

Annu

al T

arge

t 201

8/19

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alDe

viat

ion

Expl

anat

ion

1Co

nsol

idat

ed L

egis

latu

re b

udge

t pro

duce

dQu

arte

rly B

udge

t for

201

9/20

com

pile

d B

udge

t for

201

9/20

com

pile

d

Quar

terly

Adju

stm

ent e

stim

ate

budg

et fo

r 20

18/1

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nsol

idat

edAd

just

men

t est

imat

e bu

dget

for

2018

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cons

olid

ated

Stra

tegi

c ob

ject

ive

Soun

d co

rpor

ate

gove

rnan

ce th

roug

h ef

fect

ive

cont

rol e

nviro

nmen

t

2Nu

mbe

r of r

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ts o

n fin

anci

al re

sour

ces

mon

itore

dQu

arte

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IYM

repo

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ubm

itted

to

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sury

12 I

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ports

sub

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ally

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al c

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ject

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asur

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nual

cas

h flo

w p

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ctio

ns

subm

itted

to T

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terly

12 m

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flow

pr

ojec

tions

sub

mitt

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12 m

onth

ly c

ash

flow

pr

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sub

mitt

ed to

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easu

ry

-

Annu

ally

AFS

for 2

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ubm

itted

to

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sury

and

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r 201

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sub

mitt

ed t

o Tr

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Quar

terly

2018

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AFS

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asur

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arte

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FS

subm

itted

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Quar

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12 m

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ly a

vera

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repo

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ubm

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to T

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12 m

onth

ly a

vera

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repo

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ubm

itted

to T

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-


2.3.

3.2

Supp

ly C

hain

Man

agem

ent

Stra

tegi

c Ob

ject

ive

Prov

isio

n of

ade

quat

e st

rate

gic

and

tech

nica

l sup

port

to a

chie

ve o

rgan

izat

iona

l goa

ls

Perf

orm

ance

Indi

cato

rRe

port

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tual

per

form

ance

aga

inst

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et

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t 201

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alDe

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Expl

anat

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1An

nual

Pro

cure

men

t Pla

n co

nsol

idat

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nual

lyAn

nual

Pro

cure

men

t Pla

n co

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Pro

cure

men

t Pla

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2Up

date

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set r

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ter p

rodu

ced

Mon

thly

12 u

pdat

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sset

regi

ster

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mpi

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12 u

pdat

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sset

regi

ster

co

mpi

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Bi-A

nnua

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port

prod

uced

1 as

set c

ount

repo

rt pr

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full

asse

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as

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due

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sour

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e re

porti

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onth

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mon

thly

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ntor

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reco

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and

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subm

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12 m

onth

ly in

vent

ory

coun

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cord

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d re

conc

iliat

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su

bmitt

ed

-

2.3.

3.3

Risk

Man

agem

ent a

nd C

ompl

ianc

e

Stra

tegi

c Ob

ject

ive

Soun

d co

rpor

ate

gove

rnan

ce th

roug

h ef

fect

ive

inte

rnal

con

trol

env

ironm

ent

Perf

orm

ance

Indi

cato

rRe

port

ing

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dAn

nual

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get 2

018/

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tual

per

form

ance

aga

inst

targ

et

Actu

alDe

viat

ion

Expl

anat

ion

1Ri

sk m

anag

emen

t pla

n im

plem

ente

dAn

nual

ly1

repo

rt on

upd

ated

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k As

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men

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port

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pdat

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ssm

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Quar

terly

4 Ri

sk C

omm

ittee

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subm

itted

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repo

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subm

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-

2Nu

mbe

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n th

e m

onito

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of im

plem

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audi

t com

mitt

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solu

tions

com

pile

dQu

arte

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repo

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onito

ring

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plem

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mitt

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solu

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mpi

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ports

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the

mon

itorin

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impl

emen

tatio

n of

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mm

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pile

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-

3Im

plem

enta

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of in

tern

al a

nd e

xter

nal a

udit

reco

mm

enda

tions

mon

itore

dAn

nual

ly1

Audi

t Im

prov

emen

t Pla

n de

velo

ped

1

Audi

t Im

prov

emen

t Pla

n de

velo

ped

-


2.3.

4 In

tegr

ated

Hum

an R

esou

rce

Man

agem

ent

2.3.

4.1

Orga

nisa

tiona

l Dev

elop

men

t and

Hum

an R

esou

rce

Deve

lopm

ent

Stra

tegi

c Ob

ject

ive

Prov

isio

n of

ade

quat

e st

rate

gic

and

tech

nica

l sup

port

to a

chie

ve o

rgan

izat

iona

l goa

ls

Perf

orm

ance

Indi

cato

rRe

port

ing

perio

dAc

tual

per

form

ance

aga

inst

targ

et

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al T

arge

t 20

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tual

Devi

atio

n Ex

plan

atio

n

1Nu

mbe

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ts o

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inin

g an

d de

velo

pmen

t pro

gram

mes

co

mpi

led

Quar

terly

4 re

ports

on

train

ing

and

deve

lopm

ent p

rogr

amm

es

com

pile

d

4 re

ports

on

train

ing

and

deve

lopm

ent p

rogr

amm

es

com

pile

d

-

2Nu

mbe

r of r

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ts o

n or

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ports

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nisa

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l de

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pmen

t pro

gram

mes

co

mpi

led

-

2.3.

4.2

Hum

an R

esou

rce

Man

agem

ent

Stra

tegi

c Ob

ject

ive

Prov

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n of

ade

quat

e st

rate

gic

and

tech

nica

l sup

port

to a

chie

ve o

rgan

izat

iona

l goa

ls

Perf

orm

ance

Indi

cato

rRe

port

ing

perio

dAc

tual

per

form

ance

aga

inst

targ

et

Annu

al T

arge

t 201

8/19

Actu

alDe

viat

ion

Expl

anat

ion

1Re

ports

on

hum

an re

sour

ce a

cqui

sitio

n co

mpi

led

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terly

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ports

on

hum

an re

sour

ce

acqu

isiti

on c

ompi

led

4 re

ports

on

hum

an re

sour

ce

acqu

isiti

on c

ompi

led

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2Nu

mbe

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agem

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led

-

3Nu

mbe

r of P

ERSA

L sy

stem

con

trol a

nd m

onito

ring

repo

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com

pile

dQu

arte

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AL s

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m c

ontro

l and

m

onito

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repo

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ompi

led

4 PE

RSAL

sys

tem

con

trol a

nd

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g re

ports

com

pile

d-


2.3.

4.3

Wel

lnes

s

Stra

tegi

c Ob

ject

ive

Prov

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n of

ade

quat

e st

rate

gic

and

tech

nica

l sup

port

to a

chie

ve o

rgan

isat

iona

l goa

ls

Perf

orm

ance

Indi

cato

rRe

port

ing

Perio

d

Actu

al p

erfo

rman

ce a

gain

st ta

rget

Annu

al

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et 2

018/

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tual

Devi

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n Ex

plan

atio

n

1Nu

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2Re

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2.3

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mpl

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Rel

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Stra

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n of

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per

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Devi

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d-

Bi-a

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2.3.

6. S

afet

y an

d Se

curit

y Se

rvic

es

Stra

tegi

c Ob

ject

ive

Prov

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n of

ade

quat

e st

rate

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and

tech

nica

l sup

port

to a

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ve o

rgan

izat

iona

l goa

ls

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orm

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Indi

cato

rRe

port

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tual

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ance

aga

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et

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al T

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t 201

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alDe

viat

ion

Expl

anat

ion

1Nu

mbe

r of r

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ts o

n se

curit

y se

rvic

es p

rovi

ded

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terly

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ports

on

secu

rity

serv

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pr

ovid

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repo

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curit

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es

prov

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.-

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mbe

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ngag

emen

ts w

ith la

w e

nfor

cem

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genc

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Quar

terly

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gage

men

ts w

ith la

w

enfo

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ent a

genc

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dina

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4 en

gage

men

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w

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genc

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-

3Nu

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Bi-a

nnua

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2 re

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ogra

mm

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cilit

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.-

4Nu

mbe

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sk a

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men

ts

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d4

secu

rity

risk

asse

ssm

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nduc

ted

-

2.3.

7 In

tegr

ated

Info

rmat

ion

and

Tech

nica

l Ser

vice

s

2.3.

7.1

Info

rmat

ion

Tech

nolo

gy

Stra

tegi

c Ob

ject

ive

Soun

d co

rpor

ate

gove

rnan

ce th

roug

h ef

fect

ive

inte

rnal

con

trol

env

ironm

ent

Perf

orm

ance

Indi

cato

rRe

port

ing

perio

dAc

tual

per

form

ance

aga

inst

targ

et

Annu

al T

arge

t 201

8/20

19Ac

tual

Devi

atio

n Ex

plan

atio

n

1Nu

mbe

r of m

onito

ring

repo

rts o

n IC

T in

tegr

ated

ser

vice

s co

mpi

led

Quar

terly

4 m

onito

ring

repo

rts o

n IC

T in

tegr

ated

ser

vice

s co

mpi

led

4 m

onito

ring

repo

rts o

n IC

T in

tegr

ated

ser

vice

s co

mpi

led

-

Stra

tegi

c Ob

ject

ive

Prov

isio

n of

ade

quat

e st

rate

gic

and

tech

nica

l sup

port

to a

chie

ve o

rgan

izat

iona

l goa

ls

2Nu

mbe

r of r

epor

ts o

n th

e im

plem

enta

tion

of IC

T St

rate

gy

com

pile

d Qu

arte

rly4

repo

rts o

n th

e im

plem

enta

tion

of IC

T St

rate

gy

com

pile

d

4 re

ports

on

the

impl

emen

tatio

n of

ICT

Stra

tegy

co

mpi

led

-

3Nu

mbe

r of r

epor

ts o

n th

e Im

plem

enta

tion

of p

hase

1 o

f the

ER

P so

lutio

n co

mpi

led

Bi-a

nnua

lly2

repo

rts o

n th

e im

plem

enta

tion

of p

hase

1 o

f th

e ER

P so

lutio

n co

mpi

led

2 re

ports

on

the

impl

emen

tatio

n of

pha

se 1

of

the

ERP

solu

tion

com

pile

d

-


2.3.

7.2

Libr

ary

and

Info

rmat

ion

Serv

ices

Stra

tegi

c Ob

ject

ive

Soun

d co

rpor

ate

gove

rnan

ce th

roug

h ef

fect

ive

inte

rnal

con

trol

env

ironm

ent

Perf

orm

ance

Indi

cato

rRe

port

ing

perio

dAc

tual

per

form

ance

aga

inst

targ

et

Annu

al T

arge

t 201

8/19

Actu

alDe

viat

ion

Expl

anat

ion

1Nu

mbe

r of r

epor

ts o

n lib

rary

and

info

rmat

ion

serv

ices

pr

ovid

ed to

the

Legi

slat

ure

com

pile

dQu

arte

rly4

repo

rts o

n pr

ovis

ion

of li

brar

y an

d in

form

atio

n se

rvic

es

prov

ided

to

the

Legi

slat

ure

com

pile

d

4 re

ports

on

prov

isio

n of

libr

ary

and

info

rmat

ion

serv

ices

pr

ovid

ed t

o th

e Le

gisl

atur

e co

mpi

led

-

2.3.

7.2

Offic

e Su

ppor

t and

Hou

seho

ld

Stra

tegi

c Ob

ject

ive

Soun

d co

rpor

ate

gove

rnan

ce th

roug

h ef

fect

ive

inte

rnal

con

trol

env

ironm

ent.

Perf

orm

ance

Indi

cato

rRe

port

ing

perio

dAc

tual

per

form

ance

aga

inst

targ

et

Annu

al T

arge

t 201

8/19

Actu

alDe

viat

ion

Expl

anat

ion

1Re

ports

on

man

agem

ent o

f fac

ilitie

s fo

r a c

ondu

cive

and

saf

e w

orki

ng e

nviro

nmen

t com

pile

dQu

arte

rly4

Repo

rts o

n m

anag

emen

t of

faci

litie

s fo

r a c

ondu

cive

and

sa

fe w

orki

ng e

nviro

nmen

t co

mpi

led

4 Re

ports

on

man

agem

ent o

f fa

cilit

ies

for a

con

duci

ve a

nd

safe

wor

king

env

ironm

ent

com

pile

d

-


PROG

RAM

ME

2: E

NABL

ING

FACI

LITI

ES A

ND B

ENEF

ITS

FOR

MEM

BERS

AND

POL

ITIC

AL P

ARTI

ES

2.4.

1 Fa

cilit

ies

and

Bene

fits

for M

embe

rs

Stra

tegi

c Ob

ject

ive

Prov

isio

n of

ade

quat

e st

rate

gic

and

tech

nica

l sup

port

to a

chie

ve o

rgan

izat

iona

l goa

ls

Perf

orm

ance

Indi

cato

rRe

port

ing

perio

dAc

tual

per

form

ance

aga

inst

targ

et

Annu

al T

arge

t 201

8/19

Actu

alDe

viat

ion

Expl

anat

ion

1Nu

mbe

r of r

epor

ts o

n fa

cilit

ies

prov

ided

to M

PLs

com

pile

d Qu

arte

rly4

repo

rts o

n fa

cilit

ies

prov

ided

to

MPL

s co

mpi

led

4 re

ports

on

faci

litie

s pr

ovid

ed

to M

PLs

com

pile

d-

2Nu

mbe

r of r

epor

ts o

n be

nefit

s an

d qu

erie

s ad

dres

sed

Quar

terly

4 re

ports

on

bene

fits

and

quer

ies

addr

esse

d4

repo

rts o

n be

nefit

s an

d qu

erie

s ad

dres

sed

-

Stra

tegi

c Ob

ject

ive

Coor

dina

te a

nd s

trea

mlin

e co

nstit

uenc

y w

ork

into

the

legi

slat

ure

prog

ram

me

3Nu

mbe

r of r

epor

ts o

n cl

aim

s fo

r pol

itica

l par

ties

proc

esse

dQu

arte

rly4

repo

rts o

n cl

aim

s fo

r pol

itica

l pa

rties

pro

cess

ed4

repo

rts o

n cl

aim

s fo

r pol

itica

l pa

rties

pro

cess

ed-

4Nu

mbe

r of r

epor

ts o

n pr

ovis

ion

of s

uppo

rt to

Con

stitu

ency

Of

fices

com

pile

dQu

arte

rly4

repo

rts o

n pr

ovis

ion

of

supp

ort t

o Co

nstit

uenc

y Of

fices

co

mpi

led

4 re

ports

on

prov

isio

n of

su

ppor

t to

Cons

titue

ncy

Offic

es

com

pile

d

-


PROG

RAM

ME

3: P

ARLI

AMEN

TARY

SER

VICE

S

2.5.

1 Ov

ersi

ght s

ervi

ces

2.5.

1.1

Com

mitt

ees

Stra

tegi

c Ob

ject

ive

Full

impl

emen

tatio

n of

the

East

ern

Cape

Leg

isla

ture

ove

rsig

ht m

odel

Perf

orm

ance

Indi

cato

rRe

port

ing

perio

dAc

tual

per

form

ance

aga

inst

targ

et

Annu

al T

arge

t 201

8/19

Actu

alDe

viat

ion

Expl

anat

ion

1Nu

mbe

r of r

epor

ts o

n re

ports

con

side

red

by P

ortfo

lio

Com

mitt

ees

Annu

ally

1 re

port

on B

udge

t Vot

es, A

PPs

and

Stra

tegi

c Pl

ans

con

side

red

by P

ortfo

lio C

omm

ittee

s

1 re

port

on B

udge

t Vot

es, A

PPs

and

Stra

tegi

c Pl

ans

con

side

red

by P

ortfo

lio C

omm

ittee

s

-

Annu

ally

1 re

port

on A

nnua

l Rep

orts

co

nsid

ered

by

Portf

olio

Co

mm

ittee

s

1 re

port

on A

nnua

l Rep

orts

co

nsid

ered

by

Portf

olio

Co

mm

ittee

s

-

Annu

ally

1 re

port

on F

inan

cial

Ove

rsig

ht

Repo

rts c

onsi

dere

d by

Por

tfolio

Co

mm

ittee

s

1 re

port

on F

inan

cial

Ove

rsig

ht

Repo

rts c

onsi

dere

d by

Por

tfolio

Co

mm

ittee

s

-

2Nu

mbe

r of r

epor

ts o

n Au

dit R

epor

ts c

onsi

dere

d by

the

Stan

ding

Com

mitt

ee o

n Pu

blic

Acc

ount

sAn

nual

ly1

repo

rt on

Aud

it Re

ports

co

nsid

ered

by

the

Stan

ding

Co

mm

ittee

on

Publ

ic A

ccou

nts

1 re

port

on A

udit

Repo

rts

cons

ider

ed b

y th

e St

andi

ng

Com

mitt

ee o

n Pu

blic

Acc

ount

s

-

3Nu

mbe

r of r

epor

ts o

n Po

rtfol

io C

omm

ittee

s ov

ersi

ght v

isits

co

mpi

led

Quar

terly

4 re

ports

on

Portf

olio

Co

mm

ittee

ove

rsig

ht v

isits

co

mpi

led

4 re

ports

on

Portf

olio

Co

mm

ittee

ove

rsig

ht v

isits

co

mpi

led

-

4Nu

mbe

r of r

epor

ts o

n In

tern

atio

nal s

tudy

tour

s un

derta

ken

by

Portf

olio

Com

mitt

ees

Annu

ally

1 re

port

on In

tern

atio

nal s

tudy

to

urs

unde

rtake

n by

Por

tfolio

Co

mm

ittee

s

1 re

port

on In

tern

atio

nal s

tudy

to

urs

unde

rtake

n by

Por

tfolio

Co

mm

ittee

s

-

5Nu

mbe

r of r

epor

ts o

n Bi

lls c

onsi

dere

d by

Por

tfolio

Com

mitt

ees

Quar

terly

4rep

orts

on

Pro

vinc

ial B

ills

cons

ider

ed b

y Po

rtfol

io

Com

mitt

ees

4 re

ports

on

Pro

vinc

ial

Bills

con

side

red

by P

ortfo

lio

Com

mitt

ees

-

4 re

ports

on

NCO

P Bi

lls

cons

ider

ed b

y Po

rtfol

io

Com

mitt

ees

4 re

ports

on

NCO

P Bi

lls

cons

ider

ed b

y Po

rtfol

io

Com

mitt

ees

-


2.5.

1.2

Res

earc

h

Stra

tegi

c Ob

ject

ive

Full

impl

emen

tatio

n of

the

East

ern

Cape

Leg

isla

ture

ove

rsig

ht m

odel

Perf

orm

ance

Indi

cato

rRe

port

ing

perio

dAc

tual

per

form

ance

aga

inst

targ

et

Annu

al T

arge

t 201

8/19

Actu

alDe

viat

ion

Expl

anat

ion

1Nu

mbe

r of r

esea

rch

repo

rts a

naly

sis

on d

epar

tmen

tal

perfo

rman

ce p

rodu

ced

Annu

ally

14 B

udge

t ana

lysi

s re

ports

pr

oduc

ed

14 B

udge

t ana

lysi

s re

ports

pr

oduc

ed

-

Annu

ally

14 re

ports

ana

lyse

s on

Hou

se

reso

lutio

ns p

rodu

ced

14 re

ports

ana

lyse

s on

Hou

se

reso

lutio

ns p

rodu

ced

-

Annu

ally

14 h

alf y

ear fi

nanc

ial o

vers

ight

re

ports

ana

lyse

s pr

oduc

ed14

hal

f yea

r fina

ncia

l ove

rsig

ht

repo

rts a

naly

ses

prod

uced

-

Annu

ally

14 A

nnua

l rep

orts

ana

lyse

s pr

oduc

ed14

Ann

ual r

epor

ts a

naly

ses

prod

uced

-

2Nu

mbe

r of r

esea

rch

repo

rts o

n si

te v

isits

pro

duce

d Qu

arte

rly16

8 re

sear

ch re

ports

on

site

vi

sits

pro

duce

d21

6 re

sear

ch re

ports

on

site

vi

sits

pro

duce

dTh

e ta

rget

was

exc

eede

d du

e to

incr

ease

dem

and

for

rese

arch

ser

vice

s on

site

vis

it.

3Pu

blic

out

reac

h re

sear

ch re

ports

pro

duce

dAn

nual

ly1

Publ

ic o

utre

ach

rese

arch

re

port

prod

uced

1 Pu

blic

out

reac

h re

sear

ch

repo

rt pr

oduc

ed-

4Re

ports

on

Focu

s In

terv

entio

n re

sear

ch s

ervi

ces

prod

uced

Bi-a

nnua

lly2

focu

sed

inte

rven

tion

stud

y re

ports

pro

duce

d2

focu

sed

inte

rven

tion

stud

y re

ports

pro

duce

d-


2.5.

1.3

Natio

nal C

ounc

il of

Pro

vinc

es (N

COP)

Stra

tegi

c Ob

ject

ive

Prov

isio

n of

ade

quat

e st

rate

gic

and

tech

nica

l sup

port

to a

chie

ve o

rgan

isat

iona

l goa

ls

Perf

orm

ance

Indi

cato

rRe

port

ing

perio

dAn

nual

Tar

get 2

018/

19Ac

tual

per

form

ance

aga

inst

targ

et

Actu

alDe

viat

ion

Expl

anat

ion

1Nu

mbe

r of r

epor

ts o

n NC

OP-E

CPL

activ

ities

pro

duce

dQu

arte

rly4

repo

rts o

n NC

OP-E

CPL

activ

ities

pro

duce

d4

repo

rts o

n NC

OP-E

CPL

activ

ities

pro

duce

d-

2Nu

mbe

r of r

epor

ts o

n Pr

ovin

cial

wee

k pr

oduc

edAn

nual

ly1

repo

rt on

Pro

vinc

ial W

eek

prod

uced

1 re

port

on P

rovi

ncia

l Wee

k pr

oduc

ed-

Stra

tegi

c Ob

ject

ive

Effe

ctiv

e pa

rtic

ipat

ion

of th

e le

gisl

atur

e in

the

natio

nal l

aw m

akin

g pr

oces

ses

3Re

ports

on

NCOP

Bill

s fa

cilit

ated

Quar

terly

4 Re

ports

on

NCOP

Bill

s pr

oces

sed

4 Re

ports

on

NCOP

Bill

s pr

oces

sed

-

4Re

ports

on

Budg

et v

otes

pro

duce

dAn

nual

ly1

repo

rt on

Bud

get v

otes

pr

oduc

ed1

repo

rt on

Bud

get v

otes

pr

oduc

ed-

2.5.

2 L

egal

and

Pro

cedu

ral S

ervi

ces

2.5.

2.1

Publ

ic P

artic

ipat

ion,

Pet

ition

s an

d Ed

ucat

ion

Stra

tegi

c Ob

ject

ive

Prov

isio

n of

ade

quat

e st

rate

gic

and

tech

nica

l sup

port

to a

chie

ve o

rgan

isat

iona

l goa

ls

Perf

orm

ance

Indi

cato

rRe

port

ing

perio

dAn

nual

Tar

get 2

018/

19Ac

tual

per

form

ance

aga

inst

targ

et

Actu

alDe

viat

ion

Expl

anat

ion

1Nu

mbe

r of S

ecto

ral P

arlia

men

ts c

oord

inat

edQu

arte

rly4

Sect

oral

Par

liam

ents

co

ordi

nate

d4

Sect

oral

Par

liam

ents

co

ordi

nate

d-

2Nu

mbe

r of r

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ts o

n pe

titio

ns c

onsi

dere

dQu

arte

rly4

repo

rts o

n pe

titio

ns

cons

ider

ed4

repo

rts o

n pe

titio

ns

cons

ider

ed-

3Nu

mbe

r of r

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ts o

n Pu

blic

Edu

catio

n pr

ogra

mm

es c

ondu

cted

Quar

terly

4 re

ports

on

Publ

ic E

duca

tion

prog

ram

mes

con

duct

ed4

repo

rts o

n Pu

blic

Edu

catio

n pr

ogra

mm

es c

ondu

cted

-

4Nu

mbe

r of r

epor

ts o

n sp

ecia

l day

s co

mm

emor

ated

Quar

terly

4 re

ports

on

spec

ial d

ays

com

mem

orat

ed4

repo

rts o

n Pu

blic

Edu

catio

n pr

ogra

mm

es c

ondu

cted

-


2.5.

2.2

Hou

se P

roce

edin

gs

Stra

tegi

c Ob

ject

ive

Prov

isio

n of

ade

quat

e st

rate

gic

and

tech

nica

l sup

port

to a

chie

ve o

rgan

isat

iona

l goa

ls

Perf

orm

ance

Indi

cato

rRe

port

ing

perio

dAn

nual

Tar

get 2

018/

19Ac

tual

per

form

ance

aga

inst

targ

et

Actu

alDe

viat

ion

Expl

anat

ion

1Nu

mbe

r of r

epor

ts o

n pr

oces

sed

docu

men

ts

dist

ribut

ed to

faci

litat

e Ho

use

sitti

ngs

Quar

terly

4 re

ports

on

proc

esse

d do

cum

ents

dis

tribu

ted

to

faci

litat

e Ho

use

sitti

ngs

4 re

ports

on

proc

esse

d do

cum

ents

dis

tribu

ted

to

faci

litat

e Ho

use

sitti

ngs

-

2Nu

mbe

r of r

epor

ts o

n m

anag

emen

t of t

he

Legi

slat

ure

prog

ram

me

Quar

terly

4 re

ports

on

man

agem

ent o

f the

Le

gisl

atur

e pr

ogra

mm

e

4 re

ports

on

man

agem

ent o

f the

Le

gisl

atur

e pr

ogra

mm

e

-

3Nu

mbe

r of r

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ts o

n Ho

use

Reso

lutio

ns

com

mun

icat

ed to

Dep

artm

ents

and

Pro

vinc

ial

Legi

slat

ure

Quar

terly

4 re

ports

on

Hous

e Re

solu

tions

co

mm

unic

ated

to

Depa

rtmen

ts a

nd

Prov

inci

al L

egis

latu

re

4 re

ports

on

Hous

e Re

solu

tions

co

mm

unic

ated

to

Depa

rtmen

ts a

nd

Prov

inci

al L

egis

latu

re

-

4Nu

mbe

r of r

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ts o

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cked

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se

Reso

lutio

ns c

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led

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terly

4 re

ports

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track

ed

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-


PART CGOVERNANCE



REPORT OF THE ACCOUNTING OFFICER FOR THE YEAR ENDED 31 MARCH 2018/19

Major Events

Part of the public participation strategy has been to hold sectoral parliaments. These events create space for members of the public to interact face to face with public representatives. In these session members of the public raise issues that affect them in their specific sector with the resolutions taken subsequently directed to various government departments for immediate answers.

In the year under review, the following sectoral parliaments were held:

1. Workers’ Parliament

2. Raymond Mhlaba Annual Memorial Lecture

3. CWP Women’s Dialogue

4. Nelson Mandela Day

5. Taking Legislature to the People in Elliotdale,

6. State of the Province Address in February 2019

Employee Relations

Awareness sessions were conducted to Legislature staff members so as to create a conducive work environment on labour law prescripts regarding the conduct and incapacity of the employees in the workplace and to enhance good conduct and diligence of employees.

The disciplinary processes were conducted to ensure the satisfactory conduct and performance from Legislature staff members. All disputes referred to CCMA and referrals to Labour Courts were also dealt with. We have ensured that Employee Relations’ solutions provided fall within a legislative framework and are the best practices that enable the creation and sustainability of highly motivating and harmonious working environment in line with the Legislature’s leadership philosophy.

The engagements conducted between management and NEHAWU promoted orderly collective bargaining, employee participation in decision – making in the workplace and the effective resolution of certain disputes even before they could be referred to CCMA or Labour Courts. These engagements were as a result of the resuscitation of the Labour Management Forum that has been created.

Oversight

The legislature has adopted an Eastern Cape Oversight Model in line with the requirements of the Legislative Sector. The main of this model is to strengthen the oversight function and also to standardize the oversight work of committees. The ECPL could not fully implement the requirements of the SOM due to the limited budget allocated for committees and programming challenges. The focus of oversight during the period under review has been line with the government priorities as identified in the Eastern Cape Vision 2030 Development Plan which are: improving education, improving health care, creating decent work, fighting crime and corruption, and promoting rural development and land reform.

In view of the fact that education remains a key priority for the province, the ECPL continued with the instutionalised school visits programme with all MPLs taking part in this programme. The main intention of this programme is to assess the readiness of schools and the Department of Education for the academic year and also to check the progress made by the Department in implementing the previous resolutions.


In July 2018-150 schools were visited and in January 2019 -131 schools were visited. This programme had a positive on the outcomes of the matric pass rate as the province saw an improvement on the matric pass rate for 2018 academic year.

Risk Management

The unit is responsible for creating a risk awareness culture, formally bringing consideration of the risk into decision making and to provide central coordination, oversight and focus on the Legislature risk management initiatives. Efforts to improve internal control within the environment of the administrative arm of the Legislature were strengthened. The unit introduced Ethics awareness training with its main objective being to promote ethical culture within the organisation.

General overview of the state of financial affairs

In the financial year under review the Legislature had an adjusted budget of R565, 039 million towards the attainment of its objectives and targets for the 2018/19 performance plan. As reported in the performance report above, the Legislature has managed to achieve most of its objectives which resulted in the budget expenditure of 97, 5%. The under expenditure of 2, 5% is mainly in capital payments.

Of critical importance in the attainment of objectives by the Legislature is the improvement in the administration and governance of the institution which resulted in the clean audit outcome. This comes at the end of the fifth term of government and is an indication of the work and controls put in place continuously over this term.

The clean audit outcome will require putting up adequate systems of accounting and continuous skilling of finance, supply chain and human resources management personnel to sustain preparation of complete and accurate financial statements. The implementation of the accounting system is envisaged for the next financial year and will greatly reduce the risk of adjustment of financial statements as a result of errors.

The Legislature was exposed to financial pressure mainly in Programme 3: Parliamentary Services where there were unforeseen Bills received from the National Council of Provinces (NCOP). This was unavoidable as the NCOP was fast-tracking all Bills before to ensure their finalisation before the end of the fifth term of government. This resulted in the Legislature receiving Bills in excess of what was planned in the Annual Performance Plan and therefore the budget. As a result budget was allocated to the programme through the budget adjustment estimate process and this enabled the Committees to conclude the public participation hearings before the end of the term.

Despite this cost pressure in Programme 3, the Legislature reported under expenditure at year end and this was from slow spending on the capital payments budget. The budget was planned for spending on replacement of Members’ computer equipment and for the network cabling project which is part of the continuing IT infrastructure upgrade. These payments have been accrued to the 2019/20 financial year. There was no unauthorised or irregular expenditure incurred in the year under review.


Programme DescriptionTotal Adjusted

BudgetExpenditure as at

end Mar-18Virements

Under /(Over) Expenditure

R’000 R’000 R’000 R’000

1. Administration 215 532 200 937 (4 105) 10 490

2. Members Facilities and Benefits 162 977 164 507 1530 0

3. Parliamentary Services 115 688 118 263 2 575 0

4. Direct Charge 70 842 67 358 0 3 484

Total 565 039 551 065 0 13 974

Virements were effected at year end to address cost pressures within Programme 2 and 3. The cost pressures were in goods and services as well as compensation of employees. The main reason for the underspending in Programme 1 was the slow spending in capital payments as indicated by the R10,490 million reflected in the table above, and the R3,484m for Members’ exit benefits which was allocated in anticipation of the early exit of any Members.

Supply chain management

The policies on supply chain management and asset management were subjected to review at the end of the previous financial year. This has enabled greater awareness on the procurement processes that are to be followed by the budget holders in the acquisition of goods and services. Much improvement has been observed in the performance of the supply chain management unit with internal audit reviews indicating such improvements.

The supply chain management operations remain manual based, in the absence of automated systems and this poses risks inherent to manual operations. This poses challenges in the application of generally recognised accounting practices (GRAP) in preparation of financial statement disclosures on items such as payables and accruals.

Training of staff on preparation of GRAP compliant asset register was undertaken in the year under review and this has resulted in accurate reporting on these. The challenges that are faced by the SCM unit include capacity in terms of human resources in the Asset management section; fleet management and procurement provisioning section. Budget constraints continue to hinder the filling of the critical vacancies within the Unit.

SCOPA resolutions

There were no SCOPA resolutions for this period.

Organisations to whom the transfer payment have been made

Transfer payments were made to political parties in terms of the Policy for Funding of Political Parties.

Interim financial statements

The Legislature prepares and submits monthly financial statements to the Executive Authority which have been prepared in accordance to GRAP standards. These financial statements are prepared by converting the cash Trial Balance from BAS to Caseware system to ensure compliance with accrual reporting.


Prior modifications to audit reports

There has been no prior modification made to audit reports.

Internal audit unit

The Legislature has an outsourced Internal Audit function. This is an independent and objective strategic decision aimed to add value and improve the institution’s operations. The Internal Audit function has been operating in accordance to an approved three-year risk based Internal Audit rolling plan, which was completed in consultation with Management and approved by Audit Committee.

The Internal Audit function reports administratively to Accounting Officer and functionally to the Audit Committee as per the Internal Audit Charter which was reviewed and adopted by Audit Committee. The unit has conducted reviews, provided recommendations, reported on implemented progress to Accounting Officer and Audit Committee according to the approved Internal Audit plan.

Audit Committee

We are pleased to present our report for the financial year ended 31 March 2019.

Audit Committee Members and attendance

The Audit Committee consists of the members listed here under and meets at least four (4) times per annum as per its approved terms of reference. During the current year seven (7) ordinary and special audit committee meetings were held and additional two (2) meetings were held with the Executive Authority. The term of the current Audit Committee Members is coming to an end the 31 July 2019. The members and their attendance of the meetings held are as follows:

MEETING TYPE NO OF MEETINGS

Ordinary Audit Committee meetings 3

Special Meetings 4

Meeting with Executive Authority 2

Total 9

Name of Member No of Meetings Attended

Mr.S. Ngqwala (initial term Chairperson from1 October 2014) 9

MR.P.V Msiwa (Reappointed 1 October 2014) 7

Mrs.T. Cumming (Reappointed 1 October 2014) 9

Mr.T. de Beer (Reappointed 1 October 2014) 8

Audit Committee Responsibility

The Audit Committee reports that it has complied with its responsibilities arising from section 48 (1) (a) (i) (ii) (iii), (b), (c), (i) (ii) (iii), (d), (e), 2 (a), (b), (c) (i) and (ii) of the Financial Management of Parliament and Provincial Legislature Act and Treasury Regulation 3.1.13. The Audit Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with its Charter and has discharged all its responsibilities as contained therein.


The effectiveness of internal controls

In line with FMPPLA and the king IV Report on Corporate Governance requirements, Internal Audit provides the Audit Committee and Management with assurance that the internal controls are appropriate and effective. This is achieved by means of the risk management process, as well as the identification of corrective actions and suggested enhancement to the controls and processes. From the various reports of the Internal Auditors it noted that matters were reported indicating deficiencies in the system of internal control or deviations there from. Accordingly, we can report that the system of internal control was not entirely effective for the year under review.

The quality of in year management and monthly/quarterly reports submitted in terms of FMPPLA and the Division of Revenue Act.

The audit Committee is satisfied with the content and quality of the quarterly reports prepared on cash basis and issued by the Accounting Officer of the Eastern Cape Provincial Legislature during the year under review. However, the Legislature is yet to procure an accounting system accrual accounting.

The Audit Committee is satisfied with the content and quality of quarterly performance reports prepared and issued by the Accounting Officer of the Eastern Cape Provincial Legislature during the year under review.

Evaluation of Financial Statements and Annual Performance Report

The Audit Committee has:

• Reviewed and discussed the unaudited annual financial statements to be included in the annual report, with the Accounting Officer;

• Reviewed for changes in accounting policies and practices;

• Reviewed the unaudited information on predetermined objectives to be included in the annual report;

• Reviewed the Eastern Cape Provincial Legislature’s compliance with legal and regulatory provisions.

Based on the Audit Committee‘s review of the Financial Statement and Annual Performance Report, the Committee resolved that they can be recommended to the Executive Authority for submission to the Auditor General of South Africa.

Internal Audit

The Audit Committee is satisfied that the internal audit function is operating effectively and that it has addressed the risks pertinent to the Legislature in its audits.

The contract of internal Audit services expired 31 January 2019. New Internal Auditors were appointed effective from 01 February 2019.

The Audit Committee has reviewed the following reports submitted by Internal Audit during the year ended 31 March 2019;

• Strategic and Annual Internal Audit Plan for the 2019/20 Financial Year;

• Review of Internal Audit and Audit Committee Charters;

• Performance Information (quarter 1 and 4)

• Review of the 2019/20 Financial Year Draft Annual Performance Plan


• Review of the transfer payments to political Parties (Quarter 4 of the 2017/18 Financial Year and quarter 1, 2 and 3 of the 2018/19 Financial year)

• Key Controls Dashboard/Dashboard (for the quarter ending 30 June 2018, 30 December 2018);

• Review of the 2018/19 Annual Financial Statements (AFS)

• Follow-up on AG findings (Audit Improvements plan)

• Report on Communication’s review

• Information Technology Risk Assessment;

• Secretarial Services

Based on the reviews performed by Internal Audit, the areas of concern to the Audit Committee and the impact on financial reporting are as follows:

• The absence of an accounting system that can produce GRAP compliant financial statement.

• Information Technology Risks, relating to service continuity and security management.

• Lack of long term plan to up skills staff at the Legislature to apply GRAP requirements.

• Slow progress on the filling of the organogram especially Financial Management division and ICT.

The Audit Committee has tasked Management to improve these weaknesses.

Risk Management

A risk assessment for the Legislature is performed to update the existing risk register with new and emerging risk within the Legislature community and to assess the maturity of risk management within the Legislature. The following risks have been identified as the major risks that the Legislature is facing:

• Lack of resources within Risk and Compliance Management unit creates a dependency situation to one individual.

• The high vacancies rate in Finance Unit.

• Inadequacies of control in the Legislature leave management.

Assessment of Controls

Evaluation of adequacy of Internal Controls

In our opinion, controls in place to ensure compliance, accuracy, accountability and reliability of the Legislature process are partially adequate to provide reasonable assurance that established management objectives will be achieved.

Evaluation of effectiveness of Internal Controls

In our opinion, the Management monitoring of internal controls to respond to risks within the Legislature’s governance, operations, and information systems are partially effective to provide reasonable assurance that organisation’s objectives will be met.


Conclusion

Based on the Audit Committee’s review of the Annual Financial Statements and the Annual Performance Report, the committee resolved that they can be recommended to the Executive Authority for submission to the Auditor General – of South Africa for auditing.

Mr.S NgqwalaChairperson of the Audit Committee 31 May 2019



PART DHUMAN RESOURCE MANAGEMENT



4. HUMAN RESOURCE MANAGEMENT

Service DeliveryTable 1.1 – Main services provided and standards

Main services Actual customers Potential customers Standard of serviceActual achievement against standards

Development Management, review and implementation of Integrated Human Resource Management policies.

MPLs, all staff members and Organised Labour

MPLs and Staff members and Organised Labour

Ensure effective and efficient implementation and management of IHRM policies

Integrated Human Resource Management policies were reviewed and implemented

Recruitment and selection All staff members and applicants

Employees Ensure that all budgeted vacant posts are filled.

28 funded vacant posts were filled during the period under review

Management of conditions of service

MPLs and staff members MPLs and Staff members Ensure effective and efficient implementation of all employees’ and MPLs’ conditions of service.

Conditions of service for MPLs and employees were implemented.

Human Resource Development

MPLs and staff members MPLs and all staff members

Training of MPLs and employees

Training of MPLs and employees implemented.

Table 1.2 – Consultation arrangements with customers

Type of arrangement Actual Customers Potential Customers Actual achievements

General meetings with employees and management

Employer and employees Organised Labour, employees and managers

Meetings between management, organised Labour and employees were held

Implementation of Health and Wellness programmes

MPLs and Employees Employees and MPLs OHS, Health and Productivity, Psychosocial Services and Wellness programs implemented

Table 1.3 – Service delivery access strategy

Access Strategy Actual achievements

Consultation with Managers, organised labour, Executive Committee and Rules Committee on policy development

Consultations between Rules Committee, Executive Committee, Management and organised labour were conducted.

Table 1.4 – Service information tool

Types of information tool Actual achievements

Human Resource Plan HR Plan for 2015 - 2019 reviewed

Table 1.5 – Complaints mechanism

Grievance Mechanism Actual achievements

Grievance procedure Employee grievances facilitated through Employment Relations.


ExpenditureTABLE 2.1 – Personnel costs by programme, 2018/19

ProgrammeTotal Voted Expenditure

(R’000)

Personnel Expenditure

(R’000)

Training Expenditure

(R’000)

Personnel cost as a percentage

of total expenditure

Average personnel cost per employee

(R’000)

Total no of Employment

Programme 1 200 934 139 657,00 218 69,50 780 179

Programme 2 164 528 38 384,00 0,00 23,30 698 62

Programme 3 118 276 78 919,00 0,00 66,70 1024 77

Members 67 363 66 477,00 0,00 98,70 1278 52

Total 551 100 323 437,00 218 58,70 891 370

TABLE 2.2 – Personnel costs by salary bands, 2018/19

Salary bandsPersonnel Expenditure

(R’000)% of total personnel cost

Average personnel cost per employee (R’)

Interns 0 0 0

Lower skilled (Grade 2-5) 35 033 13.6 388 920

Skilled (Grade 6-8) 40 078 16.8 557420

Highly skilled production (Grade 9-12) 120 311 45.7 943 650

Management (Grade 14-22) 61 538 23.9 1 545 110

Total 256 960

This is inclusive of Support staff to MPLs

TABLE 2.3 – Salaries, Overtime, Home Owners Allowance and Medical Assistance by programme, 2018/19

Programme

Salaries Overtime Home Owners Allowance Medical Assistance

Amount (R’000)

Salaries as a % of personnel

cost

Amount (R’000)

Overtime as a % of personnel

cost

Amount (R’000)

HOA as a % of personnel

cost

Amount (R’000)

Medical Assistance as a % of personnel

cost

Programme 1 127 440 91.3 1 192 0.9 6 527 4.7 4 498 3,2

Programme 2 35 127 91.5 9 0.6 1 832 4.8 1 416 3.7

Programme 3 73 224 92.8 223 0.3 3 306 4.2 2 166 2.7

Total 235 791 75.8 1 424 1.2 11 665 13.7 8 080 9.6

This is inclusive of Support staff to MPLs


TABLE 2.4 – Salaries, Overtime, Home Owners Allowance and Medical Assistance by salary bands, 2018/19

Salary Bands

Salaries Overtime Home Owners Allowance Medical Assistance

Amount (R’000)

Salaries as a % of personnel

cost

Amount (R’000)

Overtime as a % of personnel

cost

Amount (R’000)

HOA as a % of personnel

cost

Amount (R’000)

Medical Assistance as a % of personnel

cost

Interns 0 0 0 0 0 0 0 0

Lower skilled (Grade 2-5)

25 029 87.9 402 1.2 2 075 5.9 1 663 4.8

Skilled (Grade 6-8)

36 434 88.8 9 0.02 2 759 6.4 2 044 4.7

Highly skilled production (Grade 9-12)

107 388 92.3 1023 1013 4 832 4.1 3 230 2.8

Management (Grade 14-22)

66 388 94.9 0 0 1999 3.2 1 143 1.9

Total 235 791 75.8 1430 1.2 11665 3.5 8080 3.1

This is inclusive of Support staff to MPLs and Interns

Employment and vacanciesTABLE 3.1 – Employment and vacancies by programme, 31 March 2019

Programme Number of postsNumber of posts

filledVacancy Rate

Number of posts filled additional to the establishment

Administration 381 260 32% 0

Support Staff to MPLs 55 56 0% 56

Remuneration of elected public representatives

52 52 0% 52

Total 488 368 32% 108

NB: This number is inclusive of Political Office Bearers and the support staff to MPLs

TABLE 3.2 – Employment and vacancies by critical occupation, 31 March 2019

Salary band Number of postsNumber of posts

filledVacancy Rate


Lower skilled (Grade 1-5) 107 72 32.7% 0

Skilled(grade 6-8)

69 36 47.8% 0

Highly skilled production(Grade 9-12)

156 110 29.5% 0

Highly skilled supervision (Grade 13-17)

44 37 16.0% 0

Senior management (Grade 18-21) 5 5 0 0

Total 381 260 32% 0


TABLE 3.3 – Employment and vacancies by salary band, 31 March 2019

Salary bands Number of postsNumber of posts

filledVacancy ate


Grade 1-5 107 72 32.7% 0

Grade 6-8 69 36 47.8% 0

Grade 9-12 156 110 29.5% 0

Grade 13-17 44 37 16.0% 0

Grade 19-22 5 5 0 0

Total 381 260 32% 0

Job evaluationTABLE 4.1 – Job Evaluation, 1 April 2018 to 31 March 2019

Salary bandNumber of

posts

Number of Jobs

Evaluated

% of posts evaluated by salary bands

Posts Upgraded Posts downgraded

Number% of posts evaluated

Number% of posts evaluated

Unskilled (Grade 2-5) 107 0 0 0 0 0 0

Semi-skilled (Grade 6-8)

69 0 0 0 0 0 0

Skilled production (Grade 9-12)

156 0 0 0 0 0 0

Professionally qualified (Grade 13-17)

44 0 0 0 0 0 0

Executive Management Service ( Grade 18-21)

5 0 0 0 0 0 0

Total 381 0 0 0 0 0 0

TABLE 4.2 – Profile of employees whose salary positions were upgraded due to their posts being upgraded, 1 April 2018 to 31 March 2019

Beneficiaries African Asian Coloured White Total

Female 0 0 0 0 0

Male 0 0 0 0 0

Total 0 0 0 0 0

Employees with a disability 0 0 0 0 0


TABLE 4.3 – Employees whose salary level exceed the grade determined by job evaluation, 1 April 2018 to 31 March 2019 (in terms of PSR 1.V.C.3)

OccupationNumber of employees

Job evaluation level

Remuneration level

Reason for deviation

Administration Officer 0 0 0 0

Senior Admin Officer 0 0 0 0

Secretary 0 0 0 0

Accountant 0 0 0 0

TOTAL 0 0 0 0

TABLE 4.4 – Profile of employees whose salary level exceed the grade determined by job evaluation, 1 April 2018 to 31 March 2019 (in terms of PSR 1.V.C.3)

Beneficiaries African Asian Coloured White Total

Female 0 0 0 0 0

Male 0 0 0 0 0

TOTAL 0 0 0 0 0

Employment changesTABLE 5.1 – Annual turnover rates by salary band for the period 1 April 2018 to 31 March 2019

Salary BandEmployment at

Beginning of Period (April 2018)

Appointments Terminations Turnover rate %

Lower skilled (Grade 2-5) 76 5 5 6.5

Skilled (Grade 6-8) 38 2 1 2.6

Highly skilled production(Grades 9-12) 107 10 4 3.7

Highly skilled supervision(Grades 14-17)

38 4 3 7.9

Senior Management (Grades 19-22) 4 2 0 0

TOTAL 263 23 13 4.9

TABLE 5.2 – Annual turnover rates by critical occupation for the period 1 April 2018 to 31 March 2019

Occupation:

Number of employees per

occupation as on 1 April 2018

Appointments Terminations

Top Management 4 1 0

General Managers 8 1 0

Committee Coordinators 19 0 0

Researchers 18 0 0

TOTAL 49 2 0


Table 5.3 – Reasons why staff are leaving the Legislature

Termination Type Number % of total

Death 0 0

Resignation 2 2%

Expiry of contract 6 6%

Dismissal – operational changes 0 0

Dismissal – misconduct 0 0

Dismissal – inefficiency 0 0

Discharged due to ill-health 0 0

Retirement 5 5%

Transfers to other Public Service Departments 0 0

Other 0 0

TOTAL 13 100%

Table 5.4 – Promotions by critical occupation

OccupationEmployees as at

1 April 2018

Promotions to another salary

level

Salary level promotions as a % of employees by occupation

Progressions to another notch within a salary

level

Notch progressions

as a % of employees by

occupation

Top Management 4 02

General Managers 8 02

Committee Coordinators 06

Researchers 18 06

Total 16

Table 5.5 – Promotions by salary band

Salary BandEmployees 1 April 2018

Promotions to another salary

level

Salary bands promotions as a % of employees by salary level

Progressions to another notch within a salary

level

Notch progressions as

a % of employees by salary band

Lower skilled (Grades 2-5) 76 3 3.9 13 17.1

Skilled (Grade 6-8)

38 2 5.3 20 52.6

Highly skilled production (Grades 9-12)

107 3 2.8 46 43

Highly skilled supervision (Grades 14-17)

38 1 2.6 09 23.7

Senior management (Grades 19-22) 4 0 0 02 50

Total 246 9 3.7 90 36.6


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h of

the

follo

win

g oc

cupa

tiona

l cat

egor

ies

as o

n 31

Mar

ch 2

019

Occu

patio

nal c

ateg

orie

s M

ale

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ale

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ing

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de 2

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03

02

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5

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disc

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dec

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rem

en, a

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uper

inte

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t (G

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00

130

132

015

129

Prof

essi

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ly q

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xper

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ts a

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man

agem

ent (

Grad

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422

044

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643

111

Top

Man

agem

ent (

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10

230

324

036

059

Exec

utiv

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t (19

- 2

2)15

00

150

330

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Tota

l10

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40

146

60

152

426

0

6.2

– To

tal n

umbe

r of e

mpl

oyee

s (in

clud

ing

empl

oyee

s w

ith d

isab

ilitie

s) in

eac

h of

the

follo

win

g oc

cupa

tiona

l ban

ds a

s on

31

Mar

ch 2

019

Occu

patio

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ands

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de 2

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30

03

02

00

20

5

Sem

i-ski

lled

and

disc

retio

nary

dec

isio

n M

akin

g (G

rade

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) 5

10

60

20

02

08

Skill

ed T

echn

ical

and

aca

dem

ical

ly q

ualifi

ed w

orke

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iddl

e m

anag

emen

t, su

perv

isor

s, fo

rem

en, a

nd s

uper

inte

nden

t (G

rade

8-1

2)13

00

130

132

015

129

Prof

essi

onal

ly q

ualifi

ed a

nd e

xper

ienc

ed s

peci

alis

ts a

nd m

id-

man

agem

ent (

Grad

e 14

-15)

422

044

064

00

643

111

Top

Man

agem

ent (

Grad

e 16

- 1

7)22

10

230

324

036

059

Exec

utiv

e M

anag

emen

t (19

- 2

2)15

00

150

330

033

048

Tota

l10

04

010

40

146

60

152

426

0


6.3

– Re

crui

tmen

t for

the

perio

d 1

April

201

8 to

31

Mar

ch 2

019

Occu

patio

nal B

ands

Mal

eFe

mal

e

Tota

lAf

rican

Colo

ured

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acks

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mak

ing

(Gra

de 2

-3)

00

00

00

00

00

0

Sem

i-ski

lled

and

disc

retio

nary

dec

isio

n M

akin

g (G

rade

4-7

)1

00

10

00

00

01

Skill

ed T

echn

ical

and

aca

dem

ical

ly q

ualifi

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t (G

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00

00

00

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Prof

essi

onal

ly q

ualifi

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nd e

xper

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ed s

peci

alis

ts a

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id-

man

agem

ent (

Grad

e 14

-15)

20

02

01

00

10

3

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Man

agem

ent (

Grad

e 16

- 1

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00

00

00

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utiv

e M

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emen

t (19

- 2

2)0

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00

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00

30

10

01

04

6.4

– Pr

omot

ions

for t

he p

erio

d 1

April

201

8 to

31

Mar

ch 2

019

Occu

patio

nal B

ands

Mal

eFe

mal

e

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rican

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ured

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acks

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ing

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-3)

00

00

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Sem

i-ski

lled

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retio

nary

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rade

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10

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Skill

ed T

echn

ical

and

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ical

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t (G

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00

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Prof

essi

onal

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ent (

Grad

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02

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ent (

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40

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09


6.5

– Te

rmin

atio

ns fo

r the

per

iod

1 Ap

ril 2

018

to 3

1 M

arch

201

9

Occu

patio

nal B

ands

Mal

eFe

mal

e

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lAf

rican

Colo

ured

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anTo

tal

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ksW

hite

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anCo

lour

edIn

dian

Tota

l Bl

acks

Whi

te

Unsk

illed

and

defi

ned

deci

sion

mak

ing

(Gra

de 2

-3)

00

00

00

00

00

0

Sem

i-ski

lled

and

disc

retio

nary

dec

isio

n M

akin

g (G

rade

4-7

)0

00

00

00

00

00

Skill

ed T

echn

ical

and

aca

dem

ical

ly q

ualifi

ed w

orke

rs, m

iddl

e m

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emen

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perv

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rem

en, a

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inte

nden

t (G

rade

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00

00

30

00

03

Prof

essi

onal

ly q

ualifi

ed a

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xper

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ed s

peci

alis

ts a

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man

agem

ent (

Grad

e 14

-15)

00

00

04

00

00

4

Top

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agem

ent (

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e 16

- 1

7)4

00

00

00

00

04

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utiv

e M

anag

emen

t (19

- 2

2)0

00

00

20

00

02

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00

00

90

00

013

6.6

– Di

scip

linar

y ac

tion

for t

he p

erio

d 1

April

201

8 to

31

Mar

ch 2

019

Desc

riptio

nM

ale

Fem

ale

Tota

lAf

rican

Colo

ured

Indi

anW

hite

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anCo

lour

edIn

dian

Whi

te

Disc

iplin

ary

actio

n1

00

02

00

03


6.7

– Sk

ills

deve

lopm

ent f

or th

e pe

riod

1 Ap

ril 2

018

to 3

1 M

arch

201

9

Occu

patio

nal c

ateg

orie

sM

ale

Fem

ale

Tota

l A

frica

nCo

lour

edIn

dian

Whi

teAf

rican

Colo

ured

Indi

anW

hite

Unsk

illed

and

defi

ned

deci

sion

mak

ing(

gra

de 2

-3)

170

00

340

00

51

Sem

i-Ski

lled

and

disc

retio

nary

dec

isio

n m

akin

g (4

-7)

211

00

364

00

62

Skill

ed, T

echn

ical

and

aca

dem

ical

ly q

ualifi

ed w

orke

rs (8

-12)

412

00

620

03

108

Prof

essi

onal

ly q

ualifi

ed a

nd e

xper

ienc

ed s

peci

alis

ts (1

4-15

)11

00

016

20

130

Top

Man

agem

ent (

16-1

7)5

10

02

00

08

Exec

utiv

e M

anag

emen

t (19

-22)

20

00

20

00

4

Tota

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015

26

04

263

Empl

oyee

s w

ith d

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ilitie

s0

00

00

00

00


TABLE 7.1 – Performance Rewards by race, gender, and disability, 1 April 2018 to 31 March 2019

DescriptionBeneficiary Profile Cost

Number of beneficiaries

Total number of employees in group

% of total within group

Cost (R’000)Average cost per

employee

African 281 288 97.57 11 159 39 711

Female 178 184 96.74 6 540 36 742

Male 103 104 99 4 619 44 842

Asian 01 01 100 36 502 36 502

Female 01 01 100 36 502 36 502

Male 0 0 0 0 0

Coloured 12 13 92 446 156 37 180

Female 06 07 85.71 226 905 37 818

Male 06 06 100 219 251 36 542

White 08 08 100 300 268 37 534

Female 08 08 100 300 268 37 534

Male 0 0 0 0 0

Employees with a disability 0 0 0 0 0

Total 302 310 97.42 11 942 39 542

NB The beneficiaries of Performance Rewards include Support staff to MPLs

TABLE 7.2 – Performance Rewards by salary bands for personnel below Senior Management Service, 1 April 2018 to 31 March 2019

Salary BandsBeneficiary Profile

Number of beneficiaries

Number of employees

% of total within salary bands

Total Cost (R’000)Average cost per

employee

Lower skilled (Grades 1-5)

70 70 1001 076

Skilled (Grades 6-8) 76

76 100 2 260


116 119 95.08 5 843

Total 62 265 97.76 9 178



TABLE 7.3 – Performance related rewards (cash bonus), by salary band, for Senior Management Service

Salary BandBeneficiary Profile

Total Cost(R’000)

Average cost per employeeNumber of

beneficiariesNumber of employees

% of total within band

14-17 36 41 87.80 2 397 66 000

19-22 04 05 100 367 91 730

Total 40 45 88.89 2 764 69 100


TABLE 8.1 – Foreign Workers, 1 April 2018 to 31 March 2019, by salary band

Salary Band1 April 2018 31 March 2019 Change

Number % of total Number % of total Number % change


0 0 0 0 0 0

Skilled (Levels6-8)

0 0 0 0 0 0

Highly skilled production (Grades 9-12) 0 0 0 0 0 0


0 0 0 0 0 0

Senior management (Grades 18-22)

0 0 0 0 0 0

Total 0 0 0 0 0 0

TABLE 8.2 – Foreign Worker, 1 April 2018 to 31 March 2019, by major occupation

Major Occupation1 April 2018 31 March 2019 Change

Number % of total Number % of total Number % change

General Manager 0 0 0 0 0 0

Researcher 0 0 0 0 0 0

Total 0 0 0 0 0 0


Leave utilisation for the period 1 January 2018 to 31 December 2018TABLE 9.1 – Sick leave, 1 January 2018 to 31 December 2018

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)

Total Number of days with medical

certificate

Total number of days without Medical

certificate

Salary Band 1-5 357 89,4 43 58,1 8 356 38 319

Salary Band 6-8 391 86,2 34 94,4 12 560 54 337

Salary Band 9-13 743 76,2 80 72,1 9 1851 177 566

Salary Band 14-17

108 61,1 24 64,9 5 381 42 66

Salary Band 19-22

7 57,1 3 60 2 33 3 4

TOTAL 1606 80,4 184 70 7 3181 263 1292

TABLE 9.2 – Additional Sick leave 1 January 2018 to 31 December 2018

Salary BandTotal days

taken

% days with medical

certification

Number of Employees

using disability

leave

% of total employees

using disability

leave

Average days per employee

Estimated Cost (R’000)


168 100 1 100 168 202

Skilled (Grades 6-8)

0 0 0 0 0 0


92 100 1 100 92 269


72 100 1 100 72 268

Senior management (Grades 18-22) 0 0 0 0 0 0

Total 332 100 3 100 111 739

TABLE 9.3 – Annual Leave, 1 January 2018 to 31 December 2018

Salary Bands Total days taken Average per employeeNumber of employees who

took leave

Lower skilled (Grades 1-5) -

2244 30 74

Skilled (Grades 6-8) -

1194 33 36


3836 35 111


1249 34 37


166 33 5

Total 8689 33 263


TABLE 9.4 – Capped leave, 1 January 2018 to 31 December 2018

Salary BandsTotal days of capped leave

utilised

Average number of

days utilised per employee

Average capped leave per employee

as at 31 December

2018

Number of employees who utilise

capped leave

Total number of capped

leave available at

31 December 2018

Number of Employees

as at 31 December

2018


2 2 22 1 1629 74

Skilled (Grades 6-8)

0 0 20 0 786 40

Highly skilled production (Grades 9-12) 14 5 26 3 2846 111


0 0 20 0 727 37


0 0 15 0 73 5

Total 16 4 23 4 6061 267

TABLE 9.5 – Leave pay-outs for the period 1 January 2018 to 31 December 2018

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

REASON Total Amount paid (R’000) Number of EmployeesAverage payment per

employee

Capped leave pay-outs on termination of service for 2018

750 12 63

Current leave pay-out on termination of service for 2018

788 12 66

Total 1538 12 65

HIV and AIDS & Health Promotion ProgrammesTABLE 10.1 – Steps taken to reduce the risk of occupational exposure

Units/categories of employees identified to be at high risk of contracting HIV & related diseases (if any)

Key steps taken to reduce the risk

None None


TABLE 10.2 – Details of Health Promotion and HIV and AIDS Programmes (tick the applicable boxes and provide the required information)

Question Yes No Details, if yes

1. Has the Legislature 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 : Wellness

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

x 2 x Officials R800 000.00

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

xComprehensive internal Employee

Assistance Programmes and Care-ways

Counselling Service provider

Body transformation

Sport & Recreation

Medical Aid Schemes

Gateway clinic

4. Has the Legislature 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

5. Has the Legislature 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 Legislature 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.

xEmployees are on various Medical Aid Schemes

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

x Only 2 x Officials underwent HIV testing during health screening conducted by Bonitas Medical Aid Scheme on the 08 November 2018

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

x The increased number of employees who participate in different Wellness programmes i.e. body transformation, massage and clinic visitations


Labour relations

The following collective agreements were entered into with trade unions within the department.

TABLE 11.1 – Collective agreements, 1 April 2018 to 31 March 2019

Subject Matter Date

Substantive Negotiations concluded 31 May 2018

TABLE 11.2 – Misconduct and disciplinary hearings finalised, 1 April 2018 to 31 March 2019

Outcomes of disciplinary hearings Number % of total

Correctional counselling 0 0

Verbal warning 0 0

Written warning 0 0

Final written warning 2 33.3

Suspended without pay 2 33.3

Fine 0 0

Demotion 0 0

Dismissal 2 33.3

Not guilty 0 0

Case withdrawn 0 0

Total 6 100

TABLE 11.3 – Types of misconduct addressed at disciplinary hearings

Type of misconduct Number % of total

Gross negligence 0 0

Dishonesty 2 40

Insubordination 2 40

Absenteeism 1 20

Criminal conviction 0 0

Verbal Assault 0 0

Total 5 100

TABLE 11.4 – Grievances lodged for the period 1 April 2018 to 31 March 2019

Description Number % of Total

Number of grievances resolved 0 0

Number of grievances not resolved 0 0

Total number of grievances lodged 0 0


TABLE 11.5 – Disputes lodged with Councils for the period 1 April 2018 to 31 March 2019

Description Number % of Total

Number of disputes upheld/ continuing 1 25

Number of disputes dismissed/ Resolved 3 75

Total number of disputes lodged 4 100

TABLE 11.6 – Strike actions for the period 1 April 2018 to 31 March 2019

Total number of person working days lost Number

Total cost (R’000) of working days lost 0

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

TABLE 11.7 – Precautionary suspensions for the period 1 April 2018 to 31 March 2019

Number of people suspended 3

Number of people whose suspension exceeded 30 days 3

Average number of days suspended 158

Cost (R’000) of suspensions 1 753 966


Skills development

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

12.1 – Training needs identified 1 April 2018 to 31 March 2019

Occupational Categories Gender

Number of employees

as at 31 March 2019

Training needs identified at start of reporting period

Learnerships

Skills Programmes & other short

courses

Other forms of training

Total

Unskilled and defined decision making (2-3)

Female 17 0 1 0 18

Male 9 0 1 0 10

Semi-skilled and discretionary decision making (4-7)

Female 0 0 0 0 0

Male 6 0 1 0 7

Skilled , technical and academically qualified workers (8-12)

Female 21 0 1 0 22

Male 7 0 1 0 8

Professionally qualified and experienced specialists (14-15)

Female 1 0 1 0 2

Male 0 0 0 0 0

Top Management (16-17) Female 1 0 1 0 2

Male 1 0 1 0 2

Executive Management (19-22)Female 1 0 1 0 2

Male 1 0 1 0 2

Sub TotalFemale 41 0 5 0 46

Male 17 0 5 0 29

Total 58 0 10 0 75

12.2 – Training provided 1 April 2017 to 31 March 2018


Number of employees

as at 31 March 2019

Training provided within the reporting period

Learnerships


courses


Total

Unskilled and defined decision making (2-3)

Female 1 0 1 0 2

Male 5 0 1 0 6

Semi-skilled and discretionary decision making (4-7)

Female 5 0 1 0 6

Male 3 0 1 0 4

Skilled , technical and academically qualified workers (8-12)

Female 6 0 1 0 7

Male 2 0 1 0 3



Number of employees

as at 31 March 2019

Training provided within the reporting period

Learnerships


courses


Total

Professionally qualified and experienced specialists (14-15)

Female 2 0 1 0 3

Male 2 0 1 0 3

Top Management (16-17)Female 2 0 1 0 3

Male 2 0 1 0 3

Executive Management (19-22)Female 0 0 0 0 0

Male 0 0 0 0 0

Sub TotalFemale 16 0 5 0 21

Male 14 0 5 0 19

Total 30 0 10 0 40

Injury on duty

The following tables provide basic information on injury on duty.

TABLE 13.1 – Injury on duty, 1 April 2018 to 31 March 2019

Nature of injury on duty Number % of total

Required basic medical attention only 2 100

Temporary Total Disablement 0 0

Permanent Disablement 0 0

Fatal 0 0

Total 2 100

Utilisation of consultantsTable 14.1(a) – Report on consultant appointments using appropriated funds

Project TitleTotal number of consultants that worked on the project

Duration:Work days

Contract value inRand

Job Evaluation & Grading 01 33 R1 169 771

Table 14.1(b) – Report on consultant appointments using appropriated funds

Total number of projects Total individual consultantsTotal duration:

Work daysTotal contract value in Rand

01 01 32 R1 065 277.70

NB: 01 day was not used to do job grading.


Table 14.2 – Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs)

Project TitlePercentage ownership by HDI

groupsPercentage management by

HDI groups

Number of Consultants from HDI groups that work on the

project

0 0 0 0

0 0 0 0

0 0 0 0

Table 14.3(a) – Report on consultant appointments using Donor funds

Project TitleTotal Number of consultants that worked on the project

Duration:Work days

Donor and Contract value in Rand

0 0 0 0

0 0 0 0

0 0 0 0

Table 14.3 (b)– Report on consultant appointments using Donor funds

Total number of projects Total individual consultantsTotal duration:

Work daysTotal contract value in Rand

0 0 0 0

0 0 0 0

Table 14.4 – Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs)

Project TitlePercentage ownership by HDI groups

Percentage management by HDI groups

Number of Consultants from HDI groups that work on the project

0 0 0 0

0 0 0 0


PART EFINANCIAL INFORMATION



Eastern Cape Provincial LegislatureAnnual Financial Statements for the year ended 31 March 2019

REPORT OF THE AUDITOR-GENERAL TO THE EASTERN CAPE PROVINCIAL LEGISLATURE ON VOTE NO. 02: EASTERN CAPE PROVINCIAL LEGISLATURE

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

1. I have audited the financial statements of the Provincial Legislature set out on pages 74 to 131, which comprise the statement of financial position as at 31 March 2019, the statement of financial performance, the statement of changes in net assets, the cash flow statement and the statement of comparison of budgeted and actual amounts for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies.

2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Provincial Legislature as at 31 March 2019, and its financial performance and cash flows for the year then ended in accordance with the South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Financial Management of Parliament and Provincial Legislatures Act (Act no. 10 of 2009) (FMPPLA).

Basis for opinion

3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of this auditor’s report.

4. I am independent of the Provincial Legislature in accordance with sections 290 and 291 of the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants, parts 1 and 3 of the International Ethics Standards Board for Accountants’ International code of ethics for professional accountants (including International Independence Standards) (IESBA codes) and the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA codes.

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

Emphasis of matter

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

Restatements of corresponding figures

7. As disclosed in note 38 to the financial statements, the corresponding figures for 31 March 2018 were restated as a result of an error in the financial statement of the legislature at, and for the year ended, 31 March 2019.

Report of the auditor-general



Responsibilities of the accounting officer for the financial statements

8. The accounting officer is responsible for the preparation and fair presentation of the financial statements in accordance with the SA Standards of GRAP and the requirements of the FMPPLA, 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.

9. In preparing the financial statements, the accounting officer is responsible for assessing the Provincial Legislature’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the appropriate governance structure either intends to liquidate the legislature or to cease operations, or has no realistic alternative but to do so.

Auditor-general’s responsibilities for the audit of the financial statements

10. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

11. A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report.

REPORT ON THE AUDIT OF THE ANNUAL PERFORMANCE REPORT

Introduction and scope

12. In accordance with the Public Audit Act of South Africa, 2004 (Act no. 25 of 2004) (PAA) and the general notice issued in terms thereof, I have a responsibility to report material findings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.

13. My procedures address the reported performance information, which must be based on the approved performance planning documents of the legislature. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters.

14. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected programme presented in the annual performance report of the legislature for the year ended 31 March 2019:




Programmes Pages in the annual performance report

Programme 3 – parliamentary services 30 - 34

15. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

16. I did not raise any material findings on the usefulness and reliability of the reported performance information of the selected programme.

Other matter

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

Achievement of planned targets

18. Refer to the annual performance report on page 17 to 34 for information on the achievement of planned targets for the year and explanations provided for the under/over achievement of a number of targets.




REPORT ON THE AUDIT OF COMPLIANCE WITH LEGISLATION

Introduction and scope

19. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material findings on the compliance of the legislature with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.

20. I did not raise material findings on compliance with the specific matters in key legislation set out in the general notice issued in terms of the PAA.

Other information

21. The accounting officer is responsible for the other information. The other information does not include the financial statements, the auditor’s report and the selected programme presented in the annual performance report that have been specifically reported in this auditor’s report.

22. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.

23. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programme presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

24. I did not receive the other information prior to the date of this auditor’s report. When I do receive and read this information, if I conclude that there is a material misstatement therein, I am required to communicate the matter to those charged with governance and request that the other information be corrected. If the other information is not corrected, I may have to retract this auditor’s report and re-issue an amended report as appropriate. However, if it is corrected this will not be necessary.

Internal control deficiencies

25. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance on it. I did not identify any significant deficiencies in internal controls.

East London31 July 2019




ANNEXURE – AUDITOR-GENERAL’S RESPONSIBILITY FOR THE AUDIT

1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements, and the procedures performed on reported performance information for selected programme and on the Eastern Cape Provincial Legislature’s compliance with respect to the selected subject matters.

Financial statements

2. In addition to my responsibility for the audit of the financial statements as described in this auditor’s report, I also:

• identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control

• obtain an understanding of internal control relevant to the audit 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 Eastern Cape Provincial Legislature’s internal control

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the accounting officer

• conclude on the appropriateness of the accounting officer’s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Eastern Cape Provincial Legislature’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of this auditor’s report. However, future events or conditions may cause a legislature to cease continuing as a going concern

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Communication with those charged with governance

3. I communicate with the accounting officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

4. I also confirm to the accounting officer that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and, where applicable, related safeguards.




ACCOUNTING OFFICER’S RESPONSIBILITIES AND APPROVAL

The Secretary to the Legislature as the Accounting officer is required by the Financial Management of Parliament and Provincial Legislatures Act 10 of 2009 as amended (FMPPLA), to maintain adequate accounting records and is responsible for the content and integrity of the annual financial statements and related financial information included in this report.

It is the responsibility of the Accounting Officer to ensure that the annual financial statements fairly present the state of affairs of the Legislature as at the end of the financial year and the results of its operations and cash flows for the period then ended. The external auditors are engaged to express an independent opinion on the annual financial statements and were given unrestricted access to all financial records and related data.

The annual financial statements have been prepared in accordance with Standards of Generally Recognised Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board. The annual financial statements are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.

The Accounting officer acknowledges that he is ultimately responsible for the system of internal financial control established by the Legislature and place considerable importance on maintaining a strong control environment. To enable the Secretary to the Legislature to meet these responsibilities, the management sets standards for internal control aimed at reducing the risk of error or deficit in a cost-effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk.

These controls are monitored throughout the Legislature and all employees are required to maintain the highest ethical standards in ensuring the Legislature’s business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the Legislature is on identifying, assessing, managing and monitoring all known forms of risk across the Legislature. While operational risk cannot be fully eliminated, the Legislature endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.

The Accounting officer is of the opinion, based on the information and explanations given by management that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the annual financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or deficit.

The Accounting officer has reviewed the Legislature’s cash flow forecast for the year to 31 March 2020 and, in the light of this review and the current financial position, he is satisfied that the Legislature has access to adequate resources to continue in operational existence for the foreseeable future.

The Legislature is wholly dependent on the equitable share for continued funding of operations. The annual financial statements are prepared on the basis that the Legislature is a going concern, and that the Provincial Treasury has neither the intention nor the need to liquidate or curtail materially the scale of the Legislature.




The annual financial statements set out on page 4 to 52, which have been prepared on the going concern basis, were approved and signed by the Accounting officer on 31 May 2019:





Figures in Rand Note(s)2019

R '000

2018Restated*

R '000

Assets

Current Assets

Cash and cash equivalents 3 22 651 26 382

Receivables from exchange transactions 4 1 461 923

Receivables from non-exchange transactions 5 - 22

Inventories 6 377 497

24 489 27 824

Non-Current Assets

Property, plant and equipment 7 28 018 36 425

Intangible assets 8 132 230

Heritage assets 9 1 016 1 016

29 166 37 671

Total Assets 53 655 65 495

Liabilities

Current Liabilities

Payables from exchange transactions 10 59 603 41 537

Payables from non-exchange transactions 11 1 972 3 908

Operating lease liability 12 22 366

Provisions 13 35 415 11 548

Employee benefit obligation 14 674 699

97 686 58 058

Non-Current Liabilities

Employee benefit obligation 14 4 498 5 188

Provisions 13 19 675 35 094

24 173 40 282

Total Liabilities 121 859 98 340

Net Assets (68 204) (32 845)

Accumulated surplus (68 204) (32 845)

Statement of Financial Position as at 31 March 2019




R '000

2018Restated*

R '000

Revenue

Revenue from exchange transactionsSundry income 16 208 305

Decrease in debt impairment 24 - 34

Interest received 17 176 291

Total revenue from exchange transactions 384 630

Revenue from non-exchange transactions

Transfer revenueAppropriation 18 543 505 513 132

Public contributions and donations 19 66 47

Service in-kind revenue 20 11 492 10 640

Total revenue from non-exchange transactions 555 063 523 819

Total revenue 555 447 524 449

ExpenditureEmployee related costs 21 (337 840) (312 322)

Transfer payments 22 (117 843) (106 792)

Depreciation and amortisation 23 (10 730) (10 346)

Finance costs 14 (381) (363)

Increase in debt impairment 24 (47) -

Contracted services 25 (5 959) (2 790)

General expenses 26 (115 266) (103 230)

Total expenditure (588 066) (535 843)

Loss on exchange differences 27 (366) (23)

Loss on disposal of assets 28 (2 389) (961)

Actuarial gain or (loss) 14 15 (925)

Deficit for the year (35 359) (13 303)

Statement of Financial Performance



Accumulated surplus Total net assets

R '000 R '000

Opening balance as previously reported (20 280) (20 280)

Correction of errors 738 738

Balance at 01 April 2017 as restated* (19 542) (19 542)

Changes in net assets Surplus for the year(13 303) (13 303)

Total changes (13 303) (13 303)

Balance at 31 March 2018 (32 845) (32 845)

Changes in net assets Deficit for the year(35 359) (35 359)

Total changes (35 359) (35 359)

Balance at 31 March 2019 (68 204) (68 204)

Statement of Changes in Net Assets




R '000

2018Restated*

R '000

Cash flows from operating activities

Receipts

Sundry income 205 305

Appropriation received 547 103 513 132

Interest income 144 291

547 452 513 728

Payments

Employee costs (325 926) (312 322)

Suppliers (102 537) (83 683)

Transfers and subsidies (118 105) (106 792)

(546 568) (502 797)

Net cash flows from operating activities 29 884 10 931

Cash flows from investing activities

Purchase of property, plant and equipment 7 (5 685) (3 610)

Proceeds from sale of property, plant and equipment 7 1 070 954

Net cash flows from investing activities (4 615) (2 656)

Net increase/(decrease) in cash and cash equivalents (3 731) 8 275

Cash and cash equivalents at the beginning of the year 26 382 18 107

Cash and cash equivalents at the end of the year 3 22 651 26 382

Cash Flow Statement



Budget on Cash Basis

Approved budget Adjustments Final Budget

Actual amountson comparable

basis

Difference between final budget and

actual Reference

R ‘000 R ‘000 R ‘000 R ‘000 R '000 R ‘000

Statement of Financial Performance

Revenue

Revenue from exchange

transactions

Sundry income 163 - 163 205 42

Interest received - investment 85 - 85 158 73

Receipts on sale of assets 180

- 180 181 1

Total revenue from exchange transactions

428 - 428 544 116 37

Revenue from non-exchange

transactions

Transfer revenue

Appropriaton 525 571 39 039 564 610 542 571 (22 039) 37

Total revenue 525 999 39 039 565 038 543 115 (21 923)

Expenditure

Employee related costs (314 666) (6 920) (321 586) (323 436) (1 850)

Transfer payments (107 179) (14 755) (121 934) (120 595) 1 339

Goods and services (89 673) (13 306) (102 979) (102 537) 442

Total expenditure (511 518) (34 981) (546 499) (546 568) (69) 37

Deficit before taxation 14 481 4 058 18 539 (3 453) (21 992)

Deficit for the year from continuing operations

14 481 4 058 18 539 (3 453) (21 992)

Capital expenditure (14 481) (4 058) (18 539) (4 526) 14 013 37

Actual Amount on ComparableBasis as Presented in theBudget and ActualComparative Statement

- - - (7 979) (7 979)

Statement of Comparison of Budget and Actual Amounts



Approved budget

Approved budget Adjustments Final Budget

Actual amountson comparable

basis

Difference between final budget and

actual Reference

R ‘000 R ‘000 R ‘000 R ‘000 R '000 R ‘000

ReconciliationActual Amount on Comparable Basis as Presented in the Budget and Actual Comparative Statement

(7 979)

Basis difference

Sundry income 3

Interest receivable 18

Capital Expenditure 4 526

Gains / losses on disposal (2 389)

Foreign exchange difference (366)

Receipts from Sale of Assets (181)

Appropriation 934

Public contributions and 66

donations

Services in Kind 11 492

Increase in debt impairment (47)

Employee Related Costs (11 914)

Goods and contracted services (18 688)

Transfer Payments 262

Depreciation (10 730)

Finance Costs (381)

Actuarial gain/(loss) 15

Actual Amount in the Statement of Financial Performance

(35 359)

Material budget difference are those exceeding 10% of the budget and where these variances (as specified) exceed R100 000. Material budget differences are explained in note 37.

Statement of Comparison of Budget and Actual Amounts



1. Presentation of Annual Financial Statements

The annual financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance with section 56 (1) of the Financial Management of Parliament and Provincial Legislatures Act 10 of 2009 as amended (FMPPLA).

These annual financial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention as the basis of measurement, unless specified otherwise. They are presented in South African Rand.

All figures have been rounded to the nearest thousand Rand.

Assets, liabilities, revenues and expenses were not offset, except where offsetting is either required or permitted by a Standard of GRAP. Where necessary, comparative figures have been reclassified to confirm the changes in presentation in the current year.

A summary of the significant accounting policies, which have been consistently applied in the preparation of these annual financial statements, are disclosed below.

1.1 Going concern assumption

These annual financial statements have been prepared based on the expectation that the Eastern Cape Provincial Legislature will continue to operate as a going concern for at least the next 12 months.

1.2 Significant judgements and sources of estimation uncertainty

In preparing the annual financial statements, management is required to make estimates and assumptions that affect the amounts represented in the annual financial statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the annual financial statements. Significant judgements include:

Receivables

The Legislature assesses its receivables for impairment at the end of each reporting period. In determining whether credit losses should be recorded in surplus or deficit, the institution makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash flows from a financial asset.

The allowance for impairment on receivables is recognised when there is objective evidence that it is impaired. The impairment is measured based on the profile of each individual debtor. The debtors are classified as high and low risk depending on the situation assessed by management.

Provisions

Provisions were raised and management determined an estimate based on the information available. Additional disclosure of these estimates of provisions are included in note 13 - Provisions.

Accounting Policies



1.2 Significant judgements and sources of estimation uncertainty (continued) Useful lives of Property, Plant and Equipment and Intangibles

The Legislature management determines the estimated useful lives and related depreciation or amortisation charges for all its Property, Plant and Equipment and Intangible assets taking into account the residual values of the assets at the end of their useful lives.

The useful lives of assets are based on management’s estimation. Management annually considers whether there are any indicators that the useful lives and residual values may need to be changed. Management considers the impact of technology, availability of capital funding and the asset’s service requirements in order to determine the optimum useful life expectation where appropriate.

Other long-term employment benefits

The present value of the long service award obligation depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) include the discount rate. Any changes in these assumptions will impact on the carrying amount of long service award obligations.

The Legilsature determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the long service obligations. The most appropriate discount rate that reflects the time value for money is with reference to market yields at the reporting date on government bonds

Where there is no deep market in government bonds with a sufficiently long maturity to match the estimated maturity of all the benefit payments, the Legislature uses current market rates of the appropriate term to discount shorter term payments, and estimates the discount rate for longer maturities by extrapolating current market rates along the yield curve.

Other key assumptions for long service award obligations are based on current market conditions. Additional information is disclosed in Note 14 for Employee benefit obligations.

Accounting Policies



1.3 Property, plant and equipment

Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one period.

Recognition

The cost of an item of property, plant and equipment is recognised as an asset when:

• it is probable that future economic benefits or service potential associated with the item will flow to the Legislature; and

• the cost of the item can be measured reliably.

Measurement

Property, plant and equipment is initially measured at cost.

The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted in arriving at the cost.

Where an asset is acquired through a non-exchange transaction, its cost is its fair value as at date of acquisition.

Where an item of property, plant and equipment is acquired in exchange for a non-monetary asset or monetary assets, or a combination of monetary and non-monetary assets, the asset acquired is initially measured at fair value (the cost). If the acquired item’s fair value was not determinable, its deemed cost is the carrying amount of the asset(s) given up.

When significant components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised.

Recognition of costs in the carrying amount of an item of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by management.

Other parts

Items such as spare parts, standby equipment and servicing equipment are recognised when they meet the definition of property, plant and equipment.

Accounting Policies



1.3 Property, plant and equipment (continued)

Major inspection costs which are a condition of continuing use of an item of property, plant and equipment and which meet the recognition criteria above are included as a replacement in the cost of the item of property, plant and equipment. Any remaining inspection costs from the previous inspection are derecognised.

Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value.

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses. The useful lives of items of property, plant and equipment have been assessed as follows:

Item Depreciation method Average useful life

Leasehold improvements Straight line 5-30

Computer and office equipment Straight line 3-10

Furniture and fixtures Straight line 5-10

Motor vehicles Straight line 3

Library books Straight line 20

The depreciable amount of an asset is allocated on a systematic basis over its useful life.

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

The Legislature assesses at each reporting date whether there is any indication that the Legislature’s expectations about the residual value and the useful life of an asset have changed since the preceding reporting date. If any such indication exists, the Legislature revises the expected useful life and/or residual value accordingly. The change is accounted for as a change in an accounting estimate.

The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount of another asset.

Derecogntion

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefits or service potential expected from the use of the asset.

The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

The Legislature separately discloses expenditure to repair and maintain property, plant and equipment in the notes to the financial statements.

Accounting Policies



1.4 Intangible assets

An asset is identifiable if it either:

• is separable, i.e. is capable of being separated or divided from an entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, identifiable assets or liability, regardless of whether the entity intends to do so; or

• arises from binding arrangements (including rights from contracts), regardless of whether those rights are transferable or separable from the entity or from other rights and obligations.

A binding arrangement describes an arrangement that confers similar rights and obligations on the parties to it as if it were in the form of a contract.

An intangible asset is recognised when:

• it is probable that the expected future economic benefits or service potential that are attributable to the asset will flow to the entity; and

• the cost or fair value of the asset can be measured reliably.

The Legislature assesses the probability of expected future economic benefits or service potential using reasonable and supportable assumptions that represent management’s best estimate of the set of economic conditions that will exist over the useful life of the asset.

Where an intangible asset is acquired through a non-exchange transaction, its initial cost at the date of acquisition is measured at its fair value as at that date.

Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred. An intangible asset arising from development (or from the development phase of an internal project) is recognised when:

• it is technically feasible to complete the asset so that it will be available for use or sale.

• there is an intention to complete and use or sell it.

• there is an ability to use or sell it.

• it will generate probable future economic benefits or service potential.

• there are available technical, financial and other resources to complete the development and to use or sell the asset.

• the expenditure attributable to the asset during its development can be measured reliably.

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.

An intangible asset is regarded as having an indefinite useful life when, based on all relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows or service potential. Amortisation is not provided for these intangible assets, but they are tested for impairment annually and whenever there is an indication that the asset may be impaired. For all other intangible assets amortisation is provided on a straight line basis over their useful life.

Accounting Policies



1.4 Intangible assets (continued)

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date.

Reassessing the useful life of an intangible asset with a finite useful life after it was classified as indefinite is an indicator that the asset may be impaired. As a result the asset is tested for impairment and the remaining carrying amount is amortised over its useful life.

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:

Item Depreciation method Average useful life

Computer software Straight line 5

Intangible assets are derecognised:

• on disposal; or

• when no future economic benefits or service potential are expected from its use or disposal.

The gain or loss arising from the derecognition of intangible assets is included in surplus or deficit when the asset is derecognised. The gain or loss is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the asset.

1.5 Heritage assets

Heritage assets are assets that have a cultural, environmental, historical, natural, scientific, technological or artistic significance and are held indefinitely for the benefit of present and future generations.

The Legislature separately discloses expenditure to repair and maintain heritage assets in the notes to the financial statements.

Recognition

The Legislature recognises a heritage asset as an asset if it is probable that future economic benefits or service potential associated with the asset will flow to the Legislature, and the cost or fair value of the asset can be measured reliably.

Where the institution holds a heritage asset, but on initial recognition it does not meet the recognition criteria because it cannot be reliable measured, information on such heritage asset will be disclosed in the note for heritage assets.

Initial measurement

Heritage assets are measured at cost.

Where a heritage asset is acquired through a non-exchange transaction, its cost is measured at its fair value as at the date of acquisition.

Accounting Policies



1.5 Heritage assets (Continued) Subsequent measurement

After recognition as an asset, a class of heritage assets is carried at its cost less any accumulated impairment losses.

Impairment

The Legislature assesses at each reporting date whether there is an indication that it may be impaired. If any such indication exists, the Legislature estimates the recoverable amount or the recoverable service amount of the heritage asset.

Derecognition

The Legislature derecognises heritage asset on disposal, or when no future economic benefits or service potential are expected from its use or disposal.

The gain or loss arising from the derecognition of a heritage asset is included in surplus or deficit when the item is derecognised, The gain or loss arising from derecognition is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the asset.

1.6 Financial instruments

A financial instrument is any contract that gives rise to a financial asset and a financial liability or a residual interest of another entity.

A financial asset is:

• cash;

• a residual interest of another entity; or

• a contractual right to:

- receive cash or another financial asset from another entity; or

- exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity.

A financial liability is any liability that is a contractual obligation to:

• deliver cash or another financial asset to another entity; or

• exchange financial assets or financial liabilities under conditions that are potentially unfavourable to the entity.

Accounting Policies



1.6 Financial instruments (continued) Classification

The Legislature has the following types of financial assets (classes and category) as reflected on the face of the statement of financial position or in the notes thereto:

Class Category

Cash and cash equivalents Financial asset measured at amortised cost

Receivables from exchange transactions Financial asset measured at amortised cost

Receivables from non-exchange transactions Financial asset measured at amortised cost

The Legislature has the following types of financial liabilities (classes and category) as reflected on the face of the statement of financial position or in the notes thereto:

Class Category

Payables from exchange transactions Financial liability measured at amortised cost

Payabales from non-exchange transactions Financial liability measured at amortised cost

Initial recognition

The Legislature recognises a financial asset or a financial liability in its statement of financial position when the Legislature becomes a party to the contractual provisions of the instrument.

Initial measurement of financial assets and financial liabilities

The Legislature measures a financial asset and financial liability other than those subsequently measured of fair value, initially at its fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.

The Legislature measures a financial asset and financial liability initially at its fair value.

Subsequent measurement of financial assets and financial liabilities

The Legislature measures all financial assets and financial liabilities after initial recognition using the following categories:

• Financial instruments at fair value.

• Financial instruments at amortised cost.

• Financial instruments at cost.

All financial assets measured at amortised cost, or cost, are subject to an impairment review.

The amortised cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition minus principal repayments, plus or minus the cummulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount, and deduct any reduction (directly or through the use of an allowance account) for impairment or uncollectibility in the case of a financial asset.

Accounting Policies



1.6 Financial instruments (continued) Impairment and uncollectibility of financial assets

The Legislature assesses at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired. For amounts due to the institution, external debtors such as ex-employees and accounts older than 60 days are all considered indicators of impairment.

Financial assets measured at amortised cost:

Receivables are assessed for impairment at year end. Significant receivables are individually assessed and the remaining receivables are grouped based on risk categories and then assessed for impairment. The carrying amount of the receivables impaired is reduced through the use of an allowance account. The amount of the loss is recognised in surplus or deficit.

If, in a subsequent period, the amount of the credit loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised credit loss is reversed by adjusting an allowance account. The reversal does not result in a carrying amount of the financial asset that exceeds what the amortised cost would have been had the impairment not been recognised at the date the impairment is reversed. The amount of the reversal is recognised in surplus or deficit.

Where receivables are impaired through the use of an allowance account, the amount of the loss is recognised in surplus or deficit within operating expenses. When such receivables are written off, the write off is made against the relevant allowance account. Subsequent recoveries of amounts previously written off are credited against operating expenses

Derecognition Financial assets

The Legislature derecognises financial assets using trade date accounting. The Legislature derecognises a financial asset only when:

• the contractual rights to the cash flows from the financial asset expire, are settled or waived;

• the Legislature transfers to another party substantially all of the risks and rewards of ownership of the financial asset; or

• the Legislature, despite having retained some significant risks and rewards of ownership of the financial asset, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer. In this case, the Legislature :

- derecognise the asset; and

- recognise separately any rights and obligations created or retained in the transfer.

The carrying amounts of the transferred asset are allocated between the rights or obligations retained and those transferred on the basis of their relative fair values at the transfer date. Newly created rights and obligations are measured at their fair values at that date.

Accounting Policies



1.6 Financial instruments (continued)

Any difference between the consideration received and the amounts recognised and derecognised is recognised in surplus or deficit in the period of the transfer.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received is recognised in surplus or deficit.

Financial liabilities

The Legislature removes a financial liability (or a part of a financial liability) from its statement of financial position when it is extinguished — i.e. when the obligation specified in the contract is discharged, cancelled, expires or waived.

An exchange between an existing borrower and lender of debt instruments with substantially different terms is accounted for as having extinguished the original financial liability and a new financial liability is recognised. Similarly, a substantial modification of the terms of an existing financial liability or a part of it is accounted for as having extinguished the original financial liability and having recognised a new financial liability.

The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in surplus or deficit. Any liabilities that are waived, forgiven or assumed by another entity by way of a non-exchange transaction are accounted for in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions (Taxes and Transfers).

Presentation

Interest relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense in surplus or deficit.

Losses and gains relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense in surplus or deficit.

A financial asset and a financial liability are only offset and the net amount presented in the statement of financial position when the entity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

In accounting for a transfer of a financial asset that does not qualify for derecognition, the Legislature does not offset the transferred asset and the associated liability.

Accounting Policies



1.7 Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

When a lease includes both land and buildings elements, the entity assesses the classification of each element separately.

Operating leases - lessor

Operating lease revenue is recognised as revenue on a straight-line basis over the lease term. The difference between the amounts recognised as revenue and the contractual receipts are recognised as an operating lease or liability.

Initial direct costs incurred in negotiating and arranging operating leases are added to the carrying amount of the leased asset and recognised as an expense over the lease term on the same basis as the lease revenue.

The aggregate cost of incentives is recognised as a reduction of rental revenue over the lease term on a straight-line basis. Any contingent rents are recognised separately as revenue in the period in which they received.

Income for leases is disclosed under revenue in statement of financial performance.

Operating leases - lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset or liability.

The aggregate benefit of incentives is recognised as a reduction of rental expense over the lease term on a straight line basis over the lease term.

Any contingent rents are recognised separately as an expense in the period in which they are incurred.

1.8 Inventories

Inventories are initially measured at cost except where inventories are acquired through a non-exchange transaction, then their costs are their fair value as at the date of acquisition.

Inventories are measured at the lower of cost and current replacement cost where they are held for;

• distribution at no charge or for a nominal charge; or

• consumption in the production process of goods to be distributed at no charge or for a nominal charge.

Current replacement cost is the cost the Legislature incurs to acquire the asset on the reporting date.

Accounting Policies



1.8 Inventories (continued)

The cost of inventories comprises of all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

The cost of inventories is assigned using the weighted average formula. The same cost formula is used for all inventories having a similar nature and use to the Legislature.

When inventories are utilised, the carrying amounts of those inventories are recognised as an expense in the period in which the related revenue is recognised. If there is no related revenue, the expenses are recognised when the goods are distributed, or related services are rendered. The amount of any write-down of inventories to net realisable value or current replacement cost and all losses of inventories are recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realisable value or current replacement cost, are recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

1.9 Impairment of property, plant and equipment

Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognition of the loss of the asset’s future economic benefits or service potential through depreciation (amortisation).

Carrying amount is the amount at which an asset is recognised in the statement of financial position after deducting any accumulated depreciation and accumulated impairment losses thereon.

A cash-generating unit is the smallest identifiable group of assets used with the objective of generating a commercial return that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets.

Costs of disposal are incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax expense.

Depreciation (Amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life.

Fair value less costs to sell is the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal.

Recoverable amount of an asset or a cash-generating unit is the higher its fair value less costs to sell and its value in use. Useful life is either:

• the period of time over which an asset is expected to be used by the entity; or

• the number of production or similar units expected to be obtained from the asset by the entity.

Accounting Policies



1.9 Impairment of property, plant and equipment (continued) Identification

When the carrying amount of a cash-generating asset exceeds its recoverable amount, it is impaired.

The Legislature assesses at each reporting date whether there is any indication that a cash-generating asset may be impaired. If any such indication exists, the Legislature estimates the recoverable amount of the asset.

Irrespective of whether there is any indication of impairment, the Legislature also tests a cash-generating intangible asset with an indefinite useful life or a cash-generating intangible asset not yet available for use for impairment annually by comparing its carrying amount with its recoverable amount. This impairment test is performed at the same time every year. If an intangible asset was initially recognised during the current reporting period, that intangible asset was tested for impairment before the end of the current reporting period.

Value in use

When estimating the value in use of an asset, the Legislature estimates the future cash inflows and outflows to be derived from continuing use of the asset and from its ultimate disposal and the Legislature applies the appropriate discount rate to those future cash flows.

Recognition and measurement (individual asset)

An impairment loss is recognised immediately in surplus or deficit.

Reversal of impairment loss

The Legislature assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a cash-generating asset may no longer exist or may have decreased. If any such indication exists, the entity estimates the recoverable amount of that asset.

An impairment loss recognised in prior periods for a cash-generating asset is reversed if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. The carrying amount of the asset is increased to its recoverable amount. The increase is a reversal of an impairment loss. The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in prior periods.

A reversal of an impairment loss for a cash-generating asset is recognised immediately in surplus or deficit.

After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the cash-generating asset is adjusted in future periods to allocate the cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

A reversal of an impairment loss for a cash-generating unit is allocated to the cash-generating assets of the unit pro rata with the carrying amounts of those assets. These increases in carrying amounts are treated as reversals of impairment losses for individual assets. No part of the amount of such a reversal is allocated to a non-cash-generating asset contributing service potential to a cash-generating unit.

Accounting Policies



1.9 Impairment of property, plant and equipment (continued)

In allocating a reversal of an impairment loss for a cash-generating unit, the carrying amount of an asset is not increased above the lower of:

• its recoverable amount (if determinable); and

• the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior periods.

The amount of the reversal of the impairment loss that would otherwise have been allocated to the asset is allocated pro rata to the other assets of the unit.

1.10 Impairment of non-cash-generating assets

Cash-generating assets are assets used with the objective of generating a commercial return. Commercial return means that positive cash flows are expected to be significantly higher than the cost of the asset.

Non-cash-generating assets are assets other than cash-generating assets.

Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognition of the loss of the asset’s future economic benefits or service potential through depreciation (amortisation).

Carrying amount is the amount at which an asset is recognised in the statement of financial position after deducting any accumulated depreciation and accumulated impairment losses thereon.

A cash-generating unit is the smallest identifiable group of assets managed with the objective of generating a commercial return that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets.

Costs of disposal are incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax expense.

Depreciation (Amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life.

Fair value less costs to sell is the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal.

Recoverable service amount is the higher of a non-cash-generating asset’s fair value less costs to sell and its value in use. Useful life is either:

• the period of time over which an asset is expected to be used by the entity; or

• the number of production or similar units expected to be obtained from the asset by the entity.

Accounting Policies



1.10 Impairment of non-cash-generating assets (continued) Identification

When the carrying amount of a non-cash-generating asset exceeds its recoverable service amount, it is impaired.

The Legislature assesses at each reporting date whether there is any indication that a non-cash-generating asset may be impaired. If any such indication exists, the Legislature estimates the recoverable service amount of the asset.

Irrespective of whether there is any indication of impairment, the entity also tests a non-cash-generating intangible asset with an indefinite useful life or a non-cash-generating intangible asset not yet available for use for impairment annually by comparing its carrying amount with its recoverable service amount. This impairment test is performed at the same time every year. If an intangible asset was initially recognised during the current reporting period, that intangible asset was tested for impairment before the end of the current reporting period.

Value in use

Value in use of non-cash-generating assets is the present value of the non-cash-generating assets remaining service potential.

The present value of the remaining service potential of a non-cash-generating assets is determined using the following approach:

Depreciated replacement cost approach

The present value of the remaining service potential of a non-cash-generating asset is determined as the depreciated replacement cost of the asset. The replacement cost of an asset is the cost to replace the asset’s gross service potential. This cost is depreciated to reflect the asset in its used condition. An asset may be replaced either through reproduction (replication) of the existing asset or through replacement of its gross service potential. The depreciated replacement cost is measured as the current reproduction or replacement cost of the asset, whichever is lower, less accumulated depreciation calculated on the basis of such cost, to reflect the already consumed or expired service potential of the asset.

The replacement cost and reproduction cost of an asset is determined on an “optimised” basis. The rationale is that the entity would not replace or reproduce the asset with a like asset if the asset to be replaced or reproduced is an overdesigned or overcapacity asset. Overdesigned assets contain features which are unnecessary for the goods or services the asset provides. Overcapacity assets are assets that have a greater capacity than is necessary to meet the demand for goods or services the asset provides. The determination of the replacement cost or reproduction cost of an asset on an optimised basis thus reflects the service potential required of the asset.

Recognition and measurement

If the recoverable service amount of a non-cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable service amount. This reduction is an impairment loss.

Accounting Policies



1.10 Impairment of non-cash-generating assets (continued)

An impairment loss is recognised immediately in surplus or deficit.

Any impairment loss of a revalued non-cash-generating asset is treated as a revaluation decrease.

When the amount estimated for an impairment loss is greater than the carrying amount of the non-cash-generating asset to which it relates, the Legislature recognises a liability only to the extent that is a requirement in the Standards of GRAP.

After the recognition of an impairment loss, the depreciation (amortisation) charge for the non-cash-generating asset is adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

Reversal of an impairment loss

The Legislature assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a non-cash-generating asset may no longer exist or may have decreased. If any such indication exists, the Legislature estimates the recoverable service amount of that asset.

An impairment loss recognised in prior periods for a non-cash-generating asset is reversed if there has been a change in the estimates used to determine the asset’s recoverable service amount since the last impairment loss was recognised. The carrying amount of the asset is increased to its recoverable service amount. The increase is a reversal of an impairment loss. The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in prior periods.

A reversal of an impairment loss for a non-cash-generating asset is recognised immediately in surplus or deficit.

After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the non-cash-generating asset is adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

1.11 Employee benefits Short-term employee benefits

Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled within twelve months after the end of the period in which the employees render the related service.

Short-term employee benefits include items such as:

• wages, salaries and social security contributions;

• short-term compensated absences (such as paid annual leave and paid sick leave) where the compensation for the absences is due to be settled within twelve months after the end of the reporting period in which the employees render the related employee service;

Accounting Policies



1.11 Employee benefits (continued)

• bonus, incentive and performance related payments payable within twelve months after the end of the reporting period in which the employees render the related service; and

• non-monetary benefits (for example, medical care, and free or subsidised goods or services such as housing, cars and cellphones) for current employees.

When an employee has rendered service to the entity during a reporting period, the entity recognise the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service:

• as a liability (accrued expense), after deducting any amount already paid. If the amount already paid exceeds the undiscounted amount of the benefits, the Legislature recognise that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund; and

• as an expense, unless another Standard requires or permits the inclusion of the benefits in the cost of an asset.

The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs. The Legislature measures the expected cost of accumulating compensated absences as the additional amount that the entity expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

The Legislature recognise the expected cost of bonus, incentive and performance related payments when the Legislature has a present legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligation can be made. A present obligation exists when the Legislature has no realistic alternative but to make the payments.

Other Long term employee benefits

The Legislature has an obligation to provide long term service allowance benefits to all of its employees. The Legislature’s liabilty is based on the actuarial valuation. The Projected Credit Method is used to value the liabilities. Actuarial gains or losses on the long term service awards are recognised in the statement of financial performance.

Actuarial gains and losses comprise experience adjustments (the effects of differences between the previous actuarial assumptions and what has actually occurred) and the effects of changes in actuarial assumptions. In measuring its defined benefit liability the Legislature recognise actuarial gains and losses in surplus or deficit in the reporting period in which they occur.

Current service cost is the increase in the present value of the defined benefit obligation resulting from employee service in the current period.

Interest cost is the increase during a period in the present value of a defined benefit obligation which arises because the benefits are one period closer to settlement.

Accounting Policies




Past service cost is the change in the present value of the defined benefit obligation for employee service in prior periods, resulting in the current period from the introduction of, or changes to, post-employment benefits or other long-term employee benefits. Past service cost may be either positive (when benefits are introduced or changed so that the present value of the defined benefit obligation increases) or negative (when existing benefits are changed so that the present value of the defined benefit obligation decreases). In measuring its defined benefit liability the entity recognise past service cost as an expense in the reporting period in which the plan is amended.

The amount recognised as a liability for long-term service awards is the net total of the following amounts:

• the present value of the defined benefit obligation at the reporting date;

• minus the fair value at the reporting date of plan assets (if any) out of which the obligations are to be settled directly;

• plus any liability that may arise as a result of a minimum funding requirement

The Legislature recognises the net total of the following amounts as expense or revenue, except to the extent that another Standard requires or permits their inclusion in the cost of an asset.

• current service cost;

• interest cost;

• the expected return on any plan assets and on any reimbursement rights;

• actuarial gains and losses;

• past service cost; which is recognised immediately

• the effect of any curtailments or settlements; and

• the effect of applying the limit on a defined benefit asset (negative defined benefit liability).

Actuarial assumptions

Actuarial assumptions are unbiased and mutually compatible.

Financial assumptions are based on market expectations, at the reporting date, for the period over which the obligations are to be settled.

The rate used to discount long service award obligations (both funded and unfunded) reflect the time value of money. The currency and term of the financial instrument selected to reflect the time value of money is consistent with the currency and estimated term of the long service award obligations.

Long service award obligations are measured on a basis that reflects:

• estimated future salary increases;

• the benefits set out in the terms of the plan (or resulting from any constructive obligation that goes beyond those terms) at the reporting date; and

Accounting Policies




• estimated future changes in the level of any state benefits that affect the benefits payable under a defined benefit plan, if, and only if, either:

• those changes were enacted before the reporting date; or

• past history, or other reliable evidence, indicates that those state benefits will change in some predictable manner, for example, in line with future changes in general price levels or general salary levels.

1.12 Provisions and contingencies Provisions are recognised when:

• the Legislature has a present obligation as a result of a past event;

• 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 can be made of the obligation.

The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date.

Where the effect of time value of money is material, the amount of a provision is the present value of the expenditures expected to be required to settle the obligation.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement is recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement is treated as a separate asset. The amount recognised for the reimbursement does not exceed the amount of the provision.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Provisions are reversed if it is no longer probable that an outflow of resources embodying economic benefits or service potential will be required, to settle the obligation.

A provision is used only for expenditures for which the provision was originally recognised. Provisions are not recognised for future operating expenditure.

Contingent asset are recorded in the notes to the financial statements when a possible asset arise from past events, and whose existence will be confirmed by the occurrence or non occurence of one or more uncertain future events not within the control of the institution.

A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurence of one or more uncertain future events not wholly within the control of the Legislature or a present obligation that arises from past events but is not recognised because it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation, the amount of the obligation cannot be measured with sufficient reliability.

Accounting Policies



1.12 Provisions and contingencies (continued)

Contingent assets and contingent liabilities are not recognised but disclosed in the notes to the financial statements.

The Legislature recognises a provision for financial guarantees and loan commitments when it is probable that an outflow of the resources embodying economic benefits and service potential will be required to settle the obligation and a reliable estimate of the obligation can be made.

1.13 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 arises a valid expectation that the institution will discharge its responsibilities thereby incurring future expenditure that will result in the outflow of cash.

Approved and contracted commitments

This is where the expenditure has been approved and the contract has been awarded at the reporting date.

Approved but not yet contracted

This is where the expenditure has been approved and the contract is yet to be awarded or is waiting finalisation at the reporting date.

1.14 Revenue from exchange transactions

An exchange transaction is one in which the Legislature receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Measurement

Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates.

Interest

Revenue arising from the use by others of institution’s assets yielding interest, is recognised when:

• It is probable that the economic benefits or service potential associated with the transaction will flow to the entity, and

• The amount of the revenue can be measured reliably.

Interest is recognised, in surplus or deficit, using the effective interest rate method.

Accounting Policies



1.15 Revenue from non-exchange transactions

Revenue comprises gross inflows of economic benefits or service potential received and receivable by the Legislature, which represents an increase in net assets, other than increases relating to contributions from owners.

Conditions on transferred assets are stipulations that specify that the future economic benefits or service potential embodied in the asset is required to be consumed by the recipient as specified or future economic benefits or service potential must be returned to the transferor.

Control of an asset arises when the Legislature can use or otherwise benefit from the asset in pursuit of its objectives and can exclude or otherwise regulate the access of others to that benefit.

Exchange transactions are transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange.

Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, the Legislature either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange.

Restrictions on transferred assets are stipulations that limit or direct the purposes for which a transferred asset may be used, but do not specify that future economic benefits or service potential is required to be returned to the transferor if not deployed as specified.

Stipulations on transferred assets are terms in laws or regulation, or a binding arrangement, imposed upon the use of a transferred asset by entities external to the reporting Legislature.

Transfers are inflows of future economic benefits or service potential from non-exchange transactions, other than taxes.

Recognition

An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue, except to the extent that a liability is also recognised in respect of the same inflow.

As the Legislature satisfies a present obligation recognised as a liability in respect of an inflow of resources from a non- exchange transaction recognised as an asset, it reduces the carrying amount of the liability recognised and recognises an amount of revenue equal to that reduction.

Accounting Policies



1.15 Revenue from non-exchange transactions (continued) Measurement

Revenue from a non-exchange transaction is measured at the amount of the increase in net assets recognised by the Legislature.

When, as a result of a non-exchange transaction, the Legislature recognises an asset, it also recognises revenue equivalent to the amount of the asset measured at its fair value as at the date of acquisition, unless it is also required to recognise a liability. Where a liability is required to be recognised it will be measured as the best estimate of the amount required to settle the obligation at the reporting date, and the amount of the increase in net assets, if any, recognised as revenue. When a liability is subsequently reduced, because the taxable event occurs or a condition is satisfied, the amount of the reduction in the liability is recognised as revenue.

Appropriation

Appropriated funds comprises of Legislature’s allocation as well as the direct charge against the provincial revenue fund i.e members’ salaries.

Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective.

Adjustments made in terms of the adjustment budget process are recognised in the statement of financial performance on the date the adjustments become effective.

Public and donations, including goods in-kind

Public contributions and donations, including goods in kind, are recognised as assets and revenue when it is probable that the future economic benefits or service potential will flow to the Legislature and the fair value of the assets can be measured reliably.

Services in-kind

The Legislature recognises services in-kind that are significant to its operations and/or service delivery objectives as assets and recognise the related revenue when it is probable that the future economic benefits or service potential will flow to the Legislature and the fair value of the assets can be measured reliably.

Where services in-kind are not significant to the Legislature’s operations and/or service delivery objectives and/or do not satisfy the criteria for recognition, the Legislature disclose the nature and type of services in-kind received during the reporting period.

1.16 Transfers payments

Transfer payments include all “non-exchange “payments made by the Legislature. A payment is “non-exchange” if the institution does not receive anything directly in return for the transfer to the other party. Transfer payments are expensed.

Accounting Policies



1.17 Borrowing costs

Borrowing costs are interest and other expenses incurred by an entity in connection with the borrowing of funds. Borrowing costs are recognised as an expense in the period in which they are incurred.

1.18 Unauthorised expenditure

Unauthorised expenditure defined in Section 1 of the FMPPLA means:

• overspending of Parliament approved budget or a main division within a vote;

• any expenditure from Parliament’s approved budget or a main division within that budget for tghe purpose unrelated to the approved budget or main division; and

• any expenditure of donor funds for a purpose not specified in the agreement with the donor.

All expenditure relating to unauthorised expenditure is recognised as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure.

Unauthorised expenditure receivables are measured at the amount that is expected to be recoverable and are derecognised when settled or subsequently written off as irrecoverable.

1.19 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure is disclosed in the notes to the financial statements once confirmed. The amount disclosed is equal to the total value of fruitless and wasteful expenditure incurred.

1.20 Irregular expenditure

Irregular expenditure as defined in Section 1 of the FMPPLA as expenditure, other than unauthorised expenditure, incurred in contravention of or that is not in accordance with, a requirement of this Act or any applicable legislation.

Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the value of the irregular expenditure incurred unless it is impracticable to determine, in which case reasons therefore are provided in the note.

Irregular expenditure is removed from the note when it is either condoned by the relevant authority, transferred to receivables for recovery or not condoned and is not recoverable.

Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written off as irrecoverable.

Where irregular expenditure was incurred in the previous financial year and is only condoned in the following financial year, the register and the disclosure note to the financial statements are updated with the amount condoned.

Accounting Policies



1.21 Accumulated surplus / deficit

The accumulated surplus represents the net difference between the total assets and the total liabilities of the Eastern Cape Provincial Legislature. Any surpluses and deficit realised during a specific financial year are credited / debited against accumulated surplus / deficit. Prior year adjustments, relating to income and expenditure, are debited / credited against accumulated surplus when retrospective adjustments are made.

1.22 Changes in accounting policies, estimates and errors

The Legislature for change in accounting policies, estimates and errors in accordance with the standard of GRAP on Accounting Policies, Changes in Accounting Estimates and Errors. The default is that changes in accounting policies and errors be adjusted retrospectively and changes in accounting estimates be adjusted prospectively. Refer to note 38 for details regarding the prior period error.

1.23 Compensation of employees Salaries and Wages

Salaries and wages are recognised in the statement of financial performance as the services are rendered.

Social Contributions

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

Key management personnel

Compensation paid to key management personnel and presiding officers, including their family members where applicable, is included in the disclosure notes. Refer to note 21 - Employee related cost.

1.24 Offsetting

Assets, liabilities, revenue and expenses have not been offset except where offsetting is required or permitted by a standard of GRAP.

1.25 Prepayments

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

Accounting Policies



1.26 Budget information

The approved budget is prepared on a cash basis and presented by economic classification linked to performance outcome objectives.

The approved budget covers the fiscal period from 2018/04/01 to 2019/03/31.

The annual financial statements and the budget are not on the same basis of accounting therefore a comparison with the budgeted amounts for the reporting period has been prepared using the actual figures on cash basis. Budget figures for the reporting period have been included in the Statement of comparison of budget and actual amounts.

1.27 Related parties

A related party is a person or an entity with the ability to control or jointly control the other party, or exercise significant influence over the other party, or vice versa, or an entity that is subject to common control, or joint control.

Management are those persons responsible for planning, directing and controlling the activities of the Legislature, including those charged with the governance of the Legislature in accordance with legislation, in instances where they are required to perform such functions. Therefore only executive management is considered to be management as defined per the standard.

Close members of the family of a person are considered to be those family members who may be expected to influence, or be influenced by, that management in their dealings with the Legislature.

Only transactions with related parties not at arm’s length or not in the ordinary course of business are disclosed.

1.28 Events after reporting date

Events after reporting date are those events, both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue. Two types of events can be identified:

• those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); and

• those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date).

The Legislature will adjust the amount recognised in the financial statements to reflect adjusting events after the reporting date once the event occurred.

The Legislature will disclose the nature of the event and an estimate of its financial effect or a statement that such estimate cannot be made in respect of all material non-adjusting events, where non-disclosure could influence the economic decisions of users taken on the basis of the financial statements.

Accounting Policies



1.29 Effects of changes in foreign currency Foreign currency transactions

A foreign currency transaction is recorded, on initial recognition in Rands, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

The Legislature only incurs foreign currency transactions when members and staff are required to travel to other countries in execution of their duties as well as the payment of annual license fees for Microsoft Licenses. No foreign denominated assets or liabilities at year end exists.

Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous annual financial statements are recognised in surplus or deficit in the period in which they arise.

Cash flows arising from transactions in a foreign currency are recorded in Rands by applying to the foreign currency amount the exchange rate between the Rand and the foreign currency at the date of the cash flow.

1.30 Comparative figures

Where necessary, comparative figures have been reclassified to conform to changes in presentation in the current year.

Accounting Policies



Notes to the Annual Financial Statements

Figures in Rand2019

R ‘0002018

R ‘000

2. Standards, directives and interpretations

2.1 Standards and interpretations effective and adopted in the current year

In the current year, the following standards and interpretations are effective:• GRAP 1 Presentation of Financial Statements• GRAP 2 Cash Flow Statements• GRAP 3 Accounting Policies, Changes in Accounting Estimates and Errors• GRAP 4 The Effects of Changes in Foreign Exchange Rates• GRAP 5 Borrowing Costs• GRAP 6 Consolidated and Separate Financial Statements• GRAP 7 Investments in Associates• GRAP 8 Interests in Joint Ventures• GRAP 9 Revenue from Exchange Transactions• GRAP 10 Financial Reporting in Hyperinflationary Economies• GRAP 11 Construction Contracts• GRAP 12 Inventories• GRAP 13 Leases• GRAP 14 Events After the Reporting Date• GRAP 16 Investment Property• GRAP 17 Property, Plant and Equipment• GRAP 18 Segment Reporting• GRAP 19 Provisions, Contingent Liabilities and Contingent Assets• GRAP 21 Impairment of Non-cash-generating Assets• GRAP 23 Revenue from Non-exchange Transactions (Taxes and Transfers)• GRAP 24 Presentation of Budget Information in Financial Statements• GRAP 25 Employee Benefits• GRAP 26 Impairment of Cash-generating Assets• GRAP 27 Agriculture• GRAP 31 Intangible Assets• GRAP 100 Discontinued Operations• GRAP 103 Heritage Assets• GRAP 104 Financial Instruments• GRAP 105 Transfers of Functions Between Entities Under Common Control• GRAP 106 Transfers of Functions Between Entities Not Under Common Control• GRAP 107 Mergers

The following GRAP directives are effective in the current financial year:

• Directive 1 - Repeal of Existing Transitional Provisions in,and Consequentia; Amendmentsto, Standards of GRAP

• Directive 5 - Determining the GRAP Reporting Framework

• Directive 7 - The Application of Deemed Costs

• Directive 8 - Transitional provisions for Parliament & Provincial Legislatures

• Directive 11 - Changes in the Measurement Bases Following the Initial Adoption of Standards of GRAP




2. Standards, directives and interpretations (continued)The following GRAP interpretations are effective in the current year:

• IGRAP 1 - Applying the Probability Test on Initial Recognition of Revenue

• IGRAP 2 - Changes in Existing Decomissioning, Restoration and Similar Liabilities

• IGRAP 3 - Determing whether an Arrangement Contains a Lease

• IGRAP 4 - Rights to Interest Arising from Decommissioning, Restoration and Environmental Rehabilitation Funds

• IGRAP 5 - Applying the Restatment Approach under the Standard of GRAP on Financial Reporting in Hyperinflationary Economies

• IGRAP 6 - Loyalty programmes

• IGRAP 7 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction

• IGRAP 8 - Agreements for Construction of Assets from Exchange Transactions

• IGRAP 9 - Distribution of Non-cash Asste to Owners

• IGRAP 10 - Assets Received from Customers

• IGRAP 11 - Consolidations - Special Purpose Entities

• IGRAP 12 - Jointly controlled Entities - Non-monetary Contributions by Ventures

• IGRAP 13 - Operating Leases - Incentives

• IGRAP 14 - Evaluating the Substance of Transactions Involving the Legal Form of a lease

• IGRAP 15 - Revenue - Barter Transactions Involving the Legal Form of Lease

• IGRAP 16 - Intangible Asset

2.2 Standards and interpretations not yet effective or relevantThe following standards and interpretations have been published and are mandatory for the Legislature’s accounting periods beginning on or after 01 April 2019 or later periods but are not relevant to its operations:

• IGRAP 17 - Interpretations of Standard of GRAP on Service Concession Arrangements

• IGRAP 18 - Interpretations of Standard of GRAP on Recognotion & Derecognition of Land

• IGRAP 19 - Liabilities for paying Levies, Guidelines on Accounting for Arrangements

The above interpretations will have no impact on the Legislature as there are no events or circumstances for the Legislature that is affected by the new interpretations.




Figures in Rand2019

R ‘0002018

R ‘000

3. Cash and cash equivalents

Cash and cash equivalents consist of:

Bank balances 22 651 26 382

The Legislature had the following bank accounts

Account number / description Bank statement balances Cash book balances

31 March 2019

31 March 2018

31 March 2017

31 March 2019

31 March 2018

31 March 2017

First National Bank - Current account 22 651 26 382 18 107 22 651 26 382 18 107

4. Receivables from exchange transactions

Prepaid expenditure 945 592

Staff receivables 628 396

Allowance for impairment (112) (65)

1 461 923

Gross balancesPrepaid expenditure 945 592


1 573 988

Less: Allowance for impairmentStaff receivables (112) (65)

Net balancePrepaid expenditure 945 592


1 461 923

Staff receivables1 - 3 months 240 273

3 - 6 months 119 7

6 - 12 months 145 6

12+ months 124 110

628 396

Reconciliation of provision for impairment of trade and other receivables

Opening balance 65 99

Provision for impairment 47 (34)

112 65




Figures in Rand2019

R ‘0002018

R ‘000

4. Receivables from exchange transactions (continued) Trade and other receivables past due but not impaired

Trade and other receivables which are less than 3 months past due are not considered to be impaired. At 31 March 2019, R 145 (2018: R 47) were past due but not impaired.

The ageing of amounts past due but not impaired is as follows:

3 months past due 145 6

Over 6 months past due 12 41

No receivables from exchange transactions were pledged as security.

5. Receivables from non-exchange transactions

Sundry debtors - 22

ReconciliationSundry debtors

- 22

Receivables from non-exchange transactions pledged as security

Sundry debtors consists of amounts receivable based on the outcome of court orders or other legislative requirements for third parties to make payments the Legislature.

No receivables from non-exchange transactions were pledged as security by the Legislature.

The credit quality of the receivables is considered good and therefore no impairment of the debtors is required.

6. Inventories

Inventory 377 497

Inventories recognised as an expense during the year 2 525 1 862

Inventories comprise of consumables and stationery.

Inventory pledged as security

No inventory was pledged as security.




Figu

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in R

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R ‘0

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7.

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Figu

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in R

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R ‘0

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8.

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Cost

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Figures in Rand2019

R ‘0002018

R ‘000

9. Heritage assets

2019 2018

Cost / Valuation

Accumulated impairment

lossesCarrying value

Cost / Valuation

Accumulated impairment

lossesCarrying value

Historical monuments 1 016 - 1 016 - 1 016 -

Reconciliation of heritage assets 2019

Opening balance Total

Historical monuments 1 016 1 016

Reconciliation of heritage assets 2018

Opening balance Total

Historical monuments 1 016 1 016

10. Payables from exchange transactions

Staff related payables 4 237 65

Accrued bonus 8 660 7 723

Accrued expenditure 23 112 12 970

Accrued leave pay 23 594 20 779

59 603 41 537

11. Payables from non-exchange transactions

Transfers payable - 284

Payables - Direct charge 1 972 3 624

1 972 3 908

Payables - Direct Charge

Amount payable to Provincial Treasury due to underspending on Members’ salaries.

12. Operating lease liability

Current liabilities 22 366

The mimimum lease payments due are disclosed under commitments (Note 30).




Figures in Rand2019

R ‘0002018

R ‘000

13. Provisions

Reconciliation of provisions - 2019Opening Balance

AdditionsUtilised during

the yearTransfer to

currentTotal

Provision for performance bonus 11 548 12 822 (11 548) - 12 822

Members termination provision 35 094 9 222 (2 048) (22 593) 19 675

Current portion of members termination provision - - - 22 593 22 593

46 642 22 044 (13 596) - 55 090

Reconciliation of provisions - 2018

Opening Balance

AdditionsUtilised during

the yearTotal

Provision for performance bonus 10 401 11 548 (10 401) 11 548

Members termination provision 25 169 11 186 (1 261) 35 094

35 570 22 734 (11 662) 46 642

Non-current liabilities 19 675 35 094

Current liabilities 35 415 11 548

55 090 46 642

The estimate for the performance bonus is done for all employees who qualify and are still in the employment of the Eastern Cape Provincial Legislature as at 31 March 2019. Performance bonus is paid when final evaluation has been performed and scores have been awarded accordingly. The amount payable to employees is uncertain at the end of the financial year.

Member’s termination provision is a once-off terminal payment and once-off gratuity per paragraph 3.2 and 3.3 of Government Gazette no.31597 Vol 521 promulgated on 12 November 2008. The member’s termination provisions disclosed above is the estimate of the exit payments that the Legislature is expected to pay when members exit on the expected payout date subsequent to 31 March 2019 as a consequence of 2019 elections.

The member’s termination benefit will be paid by means of a special allocation from the Revenue Fund as a transfer from Provincial Treasury. Also refer to the note on subsequent events (note 39) as the elections took place and the members were sworn in prior to the submission of these annual financial statements.

14. Employee benefit obligations

The amounts recognised in the statement of financial position are as follows:

Carrying valueLong service award obligation (5 172) (5 887)

Non-current liabilities (4 498) (5 188)

Current liabilities (674) (699)

(5 172) (5 887)




Figures in Rand2019

R ‘0002018

R ‘000

14. Employee benefit obligations (continued)

Opening Balance

Utilised during the year

Raised during the yea

Closing balance

Details R’000 R’000 R’000 R’000

Long service award obligation 5 887 (1 854) 1 139 5 172

Reconciliation of employee benefits obligation as at 31 March 2018

Opening Balance

Utilised during the year

Raised during the yea

Closing balance

Details R’000 R’000 R’000 R’000

Long service award obligation 5 365 (1 494) 2 016 5 887

Changes in the present value of the defined benefit obligation are as follows:

Opening balance 5 887 5 365

Net expense recognised in the statement of financial performance (715) 522

5 172 5 887

Net reversal/expense recognised in the statement of financial performance

Actuarial (gains) losses (15) 925

Past service cost (1 854) (1 494)

Current service cost 773 728

Interest cost 381 363

(715) 522

Key assumptions used

Long service benefits are awarded in the form of leave days as a percentage of each employee’s salary. The awarded leave days have been converted to a percentage of the employee’s annual salary. The conversion is based on a 250 working day year. Assumptions used at the reporting date:

Discount rates used 8,36 % 7,65 %

Expected increase in salaries 5,50 % 6,02 %




Figures in Rand2019

R ‘0002018

R ‘000

14. Employee benefit obligations (continued) Other assumptions

The cost of long service awards is dependent on the increase in the annual salaries paid to the employees. The rate at which salaries increase has a direct effect on the employee benefit obligation.

Inflation rate

The effect of 1% change in the below assumptions has been tested and the effects are as follows:`

One percentage point increase

One percentage point decrease

Change in salary inflation 5 463 4 903

Change in discount rate 4 894 5 480

Withdrawal rate

The effect of 50% change in the normal salary inflation assumption has been tested and the effects are as follows:

50 percentage point decrease R’000

Effect on liability 1 323

15. Financial instruments disclosure

Categories of financial instruments 2019

Financial assets

At amortised cost Total

Cash and cash equivalents 22 651 22 651

Receivables from exchange transactions 1 461 1 461

24 112 24 112



Payables from exchange transactions 59 603 59 603

Payables from non-exchange transactions 1 972 1 972

61 575 61 575




Figures in Rand2019

R '0002018

R '000

15. Financial instruments disclosure (continued)

2018

Financial assets


Cash and cash equivalents 26 382 26 382

Receivables from exchange transactions 923 923

Receivables from non-exchange transactions 22 22

27 327 27 327




Payables from non exchange transation 3 908 3 908

45 445 45 445

16. Sundry income

Sundry income 208 305

The amount included in other revenue arising from exchanges of goods or services are as follows:Commission from garnishee and insurance collected 184 185

Sale of tender documents 10 16

Sundry receipts 14 104

208 305

17. Interest received

Interest revenueBank 158 267

Interest charged on trade and other receivables 18 24

176 291

18. Appropriation

Operating grants

Annual appropriation 472 523 451 045

Statutory appropriation 70 982 62 087

543 505 513 132

19. Public contributions and donations

Donations 66 47

20. Service in-kind revenue

Service in kind income 11 492 10 640




Figures in Rand2019

R ‘0002018

R ‘000

20. Service in-kind revenue (continued)Nature and type of of services in-kind are as follows:

Eastern Cape Provincial Legislature occupies upmarket office buildings belonging to the Eastern Cape Department Public Works at no fee.

The Eastern Cape Provincial Legislature received protection services from the South African Police Service at no fee for the entire period ended 31 March 2019.

21. Employee related costs

Basic 204 421 185 649

Bonus 10 059 9 486

Compensative/circumstantial allowances 1 373 1 473

Housing benefits and allowances 11 665 11 350

Leave pay provision charge 2 815 2 282

Long-service awards (1 079) (768)

Medical aid - company contributions 8 103 7 579

Other non-pensionable allowances 26 035 24 230

Overtime payments 2 039 837

Pension 45 084 41 048

Service bonus (13th Cheques) 17 263 15 469

Members Group Insurance Fund 2 245 2 199

Short term benefit 643 1 563

Members termination benefit 7 174 9 925

337 840 312 322

Remuneration of Speaker - N Kiviet

Annual Remuneration 1 187 1 187

Non pensionable allowance 524 524

Contributions to UIF, Medical and Pension Funds 267 267

1 978 1 978

Remuneration of Deputy Speaker - B Tunyiswa (Redeployed on 17 May 2018)

Annual Remuneration 156 937


Contributions to Medical and Pension Funds 35 210

260 1 561

Remuneration of Deputy Speaker - M Qoboshiyane (appointed from 17 May 2018)

Annual Remuneration 800 -

Non pensionable allowance 295 -

Service bonus 89 -

Contributions Medical and Pension Funds 180 -

1 364 -




Figures in Rand2019

R ‘0002018

R ‘000

21. Employee related costs (continued)

Remuneration of Chair of Chairs - M Sokujika



Service bonus 54 54

Contributions Medical and Pension Funds 177 175

1 349 1 298

Remuneration of Deputy Chair of chairs- NS Nkopane



Service bonus 55 54

Contributions to medical and pension funds 177 168

1 310 1 230

Remuneration of the Office of the Secretary - V. Mapolisa



Housing allowance 49 49

Service bonus 115 107


Performance bonus 103 96

2 294 2 173

Remuneration of the Chief Operating Officer - I Netshitumbu

Annual Remuneration 1 100 981

Non-pensionable allowance 292 292



Service bonus 91 82

Performance bonus 39 17

1 842 1 666

Remuneration of the Chief Financial Officer - N. Ngcakani

Annual Remuneration 1 100 981



Service bonus 39 82


Performance bonus 91 -

1 789 1 595




Figures in Rand2019

R ‘0002018

R ‘000

21. Employee related costs (continued)Remuneration of the Chief Parliamentary Ofiicer - N Mene




Service bonus 91 90


Performance bonuis 82 80

1 885 1 813

Remuneration of the Executive Manager - P. Hobongwana

Annual Remuneration 883 -

Non pensionable allowance 243 -

Housing allowance 19 -

Contributions to medical and pension funds 216 -

Service bonus 79 -

1 440 -

Remuneration of the Members of the Provincial Legislature

Annual remuneration 38 490 37 325

Non-pensionable allowance 17 073 14 301

Service bonus 2 279 2 275

Contributions to Medical and Pension Funds 8 633 8 396

Leave gratuity 888 1 261

67 363 63 558

Remuneration of the officials

Level 17 to 21 8 781 6 874

Level 15 to 16 26 286 24 544

Level 14 18 671 17 774

53 738 49 192

22. Transfer paymentsPolitical parties represented in the LegislatureAfrican Independent Congress (AIC)

1 939 2 004

African National Congress (ANC) 83 699 75 824

Congress of the People (COPE) 1 960 2 004

Democratic Alliance (DA) 18 600 16 850

Economic Freedom Fighters (EFF) 4 205 3 370

United Democratic Movement (UDM) 7 440 6 740

117 843 106 792

23. Depreciation and amortisationProperty, plant and equipment (Note 7) 10 632 10 244

Intangible assets (Note 8) 98 102

10 730 10 346




Figures in Rand2019

R '0002018

R '000

24. Debt impairmentDebt impairment 47 (34)

25. Contracted ServicesConsultants 5 959 2 790

Contracted services includes the expenses as result of using internal auditors and accountants.

26. General expensesAdministration fees 96 106

Advertising 1 133 1 864

Auditors remuneration 4 866 4 838

Bursaries (employees) 1 447 1 157

Business and advisory fees 818 2 245

Catering 9 749 7 835

Communication 2 846 2 701

Computer expenses 5 -

Computer services 8 479 6 897

Consumables 3 059 2 539

Contractors 50 97

Legal services 430 579

Operating leases 11 104 7 623

Other operating expenditure 2 222 2 338

Property payments 592 847

Rental and hiring 6 010 4 462

Service in-kind expense 11 492 10 640

Subscriptions and membership fees 25 22

Training and development 221 826

Travel and subsistence 50 297 45 332

Uniforms 325 196

Write-offs and impairments - 86

115 266 103 230

27. Loss on exchange differencesLoss on exchange differences 366 23

Foreign exchange differences arises due to the purchase of licenses from Microsoft and due to travel to countries utilising a different currency. No foreign debt is outstanding at year end.

28. Loss on disposal of assetsDisposal of Property, Plant and equipment (Note 7) 3 459 1 915

Cash received on sale of assets (1 070) (954)

Loss on disposal of assets 2 389 961




Figures in Rand2019

R '0002018

R '000

29. Cash generated from operations

Deficit (35 359) (13 303)

Adjustments for:Depreciation and amortisation

10 730 10 346

Loss on sale of assets 2 389 961

Movements in operating lease assets and accruals (344) 75

Movements in employee benefits liabilities (715) 522

Movements in provisions 8 448 11 072

Changes in working capital:Inventories

120 (147)

Receivables from exchange transactions (538) 113

Receivables from non-exchange transactions 22 72


Payable from non-exchange (1 936) (1 716)

884 10 931




Figures in Rand2019

R '0002018

R '000

30. Commitments

Authorised capital expenditure

Already contracted for but not provided for• Operating expenditure 6 994 8 214

• Capital Expenditure 2 993 -

9 987 8 214

Total capital commitmentsAlready contracted for but not provided for

9 987 8 214

Operating leases - as lessee (expense)

Minimum lease payments due- within one year 1 158 3 431

- in second to fifth year inclusive 338 906

1 496 4 337

Operating lease payments represent rentals payable by the entity for certain of its office properties.Operating lease payments represent rentals payable by the Legislature for certain buildings, other fixed structures, machinery and equipment. No contingent rental is payable.

Mowana Properties

The Legislature is leasing office space for National Council of Provinces delegates for the Eastern Cape permanently based at National Parliament in Cape Town. The National Council of Provinces Committee is made up of delegates from all the provinces. The lease term is for 5 years from 1 October 2017 to 1 September 2020. The basic rental escalates at 9% per annum.

Aloe XL Travel Services

Aloe XL was appointed to provide travel, accommodation and conference services for a period of 3 years from 1 March 2019 to 28 February 2022. The parties agreed to the transaction fees as contained in the tender documents and this will be adjusted by 7% at each anniversary of this agreement for all the service categories.

Telkom

Telkom was appointed to provide telecommunication services for further 5 years from 3 July 2014. The initial contract was entered on 1 July 2008. Service is charged per usage on a monthly basis.

Vodacom

Vodacom was appointed for a 2 year staff contract, effective 1 May 2017, to provide cell phone and 3G cards to the Legislature. Service is charged per usage on a monthly basis.

Vodacom was also appointed for a 2 year MPL contract, effective 1 February 2017, to provide cell phone and 3G cards to the Legislature. A year’s extension was granted until 31 March 2020. Service is charged per usage on a monthly basis.

Dimension Data

Dimension Data was appointed to upgrade the Legislature’s Chamber and subsequent maintenance thereof for a period of 3 years. The upgrade commenced in December 2016.

ABSA Bank / Transit Solutions

ABSA Bank through Transit Solutions was appointed to provide fuel maintenance and repair services on the 1st of April 2019. The contract will end on the 31st of March 2020. Fees are charged per transaction.




Figures in Rand2019

R ‘0002018

R ‘000

30. Commitments (continued) ACSA

ACSA was appointed to provide the airport parking facilities on the 1st of September 2017, the contract will end on 31 August 2019. Service is charged per usage on a monthly basis.

Red Alert

Red Alert was appointed to provide hygienic services from 1 March 2017 to 28 February 2018.

The contract was again awarded to Red Alert with effect from 1 March 2018 to 28 Februaty 2019 and subsequently extended to 30 June 2019.

Zikhali Techonlogy

Zikhali Technologies was appointed to supply and service printers from 30 April 2016 until 31 March 2019. An extension has been granted until 30 June 2019 to allow for transition to the new contractor.

31. ContingenciesNature of contigent liabilityLegal claim in respect of an ongoing labour dispute by K. Hoho 600 600

Legal claim in respect of a labour dispute by Mvubu 500 200

1 100 800

Due to the sensitive nature of these labour related matters, no further information can be presented. Any additional disclosure might result in advantageous information being provided to the plaintiffs.

32. Related parties`

RelationshipsPresiding Officers (Members of EXCO) Refer to Employee related cost note 21Secretary (Key management) Refer to Employee related cost note 21 Executive Manager: Corporate services (Key management) Refer to Employee related cost note 21 Chief Financial Offficer (Key management) Refer to Employee related cost note 21 Executive Manager: Parliamentary services (Key management) Refer to Employee related cost note 21 Excecutive Manager: Legal services (Key management) Refer to Employee related cost note 21 Eastern Cape Government Eastern Cape Department of Public Works (Custodian of the buildings occupied free of charge by the Legislature) South African Police Services (Providing security services to the Legislature as it is a key point.)

The Legislature is utilising buildings owned by the Eastern Cape Department of Public Works for which the market related rental was determined and this is reflected in note 20.

No other related party transactions or balances were noted for the year.




Figures in Rand2019

R ‘0002018

R ‘000

33. Going concern The annual financial statements are prepared on a going concern basis. This basis presumes that the Legislature will be able to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. Secretary has reviewed the Legislature’s ability to continue as a going concern for the year to 31 March 2020 and, in the light of this review and the current financial position, he is satisfied that the Legislature has or has access to adequate resources to continue in operational existence for the foreseeable future.

The Legislature is wholly dependent on the receipt of equitable share from Provincial Treasury of R565 million for continued funding of operations for the 2019/20 financial year. This funding has been approved as per the Medium Term Expenditure Framework of the Eastern Cape.

34. Risk management Financial risk management

The Legislature’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.

Liquidity risk

The Legislature’s risk to liquidity is a result of the funds available to cover future commitments. The Legislature manages liquidity risk through an ongoing review of future commitments and credit facilities.

The table below analyses the Legislature’s financial liabilities and net-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

At 31 March 2019Less than

1 yearBetween 1 and

2 yearsBetween 2 and

5 yearsOver

5 years

Payables from exchange transactions 59 603 - - -

Payables from non-exchange transactions 1 972 - - -

At 31 March 2018 Less than

1 yearBetween 1 and

2 yearsBetween 2 and

5 yearsOver

5 years

Payables from exchange transactions 41 537 - - -

Payables from non-exchange transactions 3 908 - - -

Credit risk

Credit risk consists mainly of cash deposits, cash equivalents and receivables. The Legislature only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party.

Receivables comprise of staff debtors. Management evaluated credit risk relating to receivables on an ongoing basis. If receivables are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the receivable, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by management.

Financial assets exposed to credit risk at year end were as follows:

Financial instrument 31 March 2019 31 March 2018

Cash and cash equivalent 22 651 26 382

Receivables from exchange rate transactions 1 461 923

Receivables from non-exchange rate transactions - 22




Figures in Rand2019

R ‘0002018

R ‘000

34. Risk management (continued) Market risk

Interest rate risk

As the Legislature has no significant interest-bearing assets, the Legislature’s income and operating cash flows are substantially independent of changes in market interest rates.

Foreign exchange risk

The Legislature does not have foreign exchange fluctuations and has limited exposure to foreign exchange risk. The only transactions that affect the foreign exchange risk are occasional foreign travel and the annual Microsoft Office licenses. No foreign denominated assets or liabilities at year end exists.

35. Irregular expenditure

Opening balance - 10 101

Less: Amounts condoned - (10 101)

- -

Analysis of expenditure awaiting condonation per age classification

Prior years - 10 101

36. Fruitless and wasteful expenditure

Opening balance 20 22

Add:Fruitless and wasteful expenditure -current year 4 (2)

24 20

37. Budget differences

Material differences between budget and actual amounts

The excess of actual expenditure over the final budget of 10% and only those variances (as defined) that exceeds R100 000 are considered to be materially by management. Details of each material difference is explained below:

Departmental revenue

Interest is due to higher cash balances on hand.

Appropriation

In line with budgetary expectations.

Expenditure

All items are aligned to budgetary expectations.

Capital Expenditure

ICT improvement programme commenced later than expected which resulted in less expenditure in the current year.




Figures in Rand2019

R ‘0002018

R ‘000

37. Budget differences (continued)Changes from the approved budget to the final budget

Changes between the original budget and final budget is solely due to the budget adjustments and virements as approved by the Legislature’s Executive Committee. The explanations for the changes between the approved and final budget are included in the Final Appropriation Bill as contained in the 2018/19 Budget Book (Adjustment). A summary of these changes are listed below:

Approved Budget adjustments:Revenue (increase of) 39 039

Operational Expenditure (increase of) 33 381

Capital Expenditure (increase of) 5 658

Virements:Employee costs (increase of) 4 358

Goods and service (decrease of) 2 952

Transfer payments (increase of) 194

Capital Expenditure (decrease of) 1 600

38. Prior period errorsDuring the preparation of the AFS for the current year the following errors were identified:

Property, Plant and Equipment

During the current year, some assets were identified which were previously not included in the asset register.

All other assets were identified mainly through the procedures revolving replacement of assets. Motor Vehicles and Computer Equipment are replaced at set intervals. In order for staff to obtain a replacement asset, the old assets under their control must be surrendered. During this process, some asset were identified that have not been verified during the GRAP implementation process and were therefore not included in the prior year asset register. Furthermore to this process, controls regarding the verification process was improved which led to the discovery of furniture and fittings which were not previously included in the asset register. These newly identified assets would have to be placed on the asset register and would result in a prior period error. For purposes of this note, Computer Equipment, Furniture and Fittings, and Motor Vehicle newly identified assets will be referred to as Other Assets Take-on’s.

In addition to the Other Asset Take-on’s, there were also newly identified Library Books. The Library Books which were available within the Library were all verified during the prior year. During the current year, it however came to light that Library Books which were on loan to users were not included in the asset register. To this extent, a complete list of previously unverified Library Books were obtained by physically verifying all Library Books physically in the Library as well as including all Library Books which are currently on loan to users. These newly identified assets were all brought on in the earliest period presented since all additions identified in the past few years were already accounted for. For purposes of this note, these asset will be referred to as Library Take-on’s.

Furthermore, the depreciation charge of the prior eriod was found to have contained errors. This resulted adjustments against the Computer and Office Equipment Accumulated Depreciation Opening Carrying Value, Depreciation charge and Disposals.

Payables from Exchange Transactions

During the current year, it was noted that certain suppliers have not been invoicing the Legislature timeously. To this extent a process was undertaken to contact the specific suppliers to identify all invoices which hasn’t been submitted timeously to the Legislature. This process resulted in new invoices being discovered pertaining to periods dating as far back as 2012 where the suppliers did not timeously inform the Legislature that the goods or services were indeed delivered. Due to these invoices only being discovered in the current year, the prior year and opening balance of accrued expenditure was restated.

Receivables from non-exchange

The Legislature was involved in a court settlement where the plaintiff was ordered to pay the Legislature R21 600. This was an ongoing event from 2017 and payment was received in full in the current financial year. An amount of R50 400 was incorrectly raised as a receivable in 2017.




Figures in Rand2019

R ‘0002018

R ‘000

38. Prior period errors (continued)Inventory

During the year under review it was discovered that an additional inventory store (Communication Department) was previously omitted from the inventory figures of the Legislature. A count was conducted as at 31 March 2019 and 31 March 2018. The stores issues were used to roll-back to the opening balance for 1 April 2017. The store has had no inventory purchases since 1 April 2017.

The correction of the error(s) results in adjustments as follows:

Property, Plant and EquipmentBalance as previously reported (1 April 2017) 44 591Adjustments to Opening Cost 675Adjustments to Opening Accumulated Depreciation (Other Assets Take-on) (293)Restated Opening Balance (1 April 2017) 44 973Transactions previously disclosed (8 417)Adjustment to prior year disposals (94)Adjustments to prior year depreciation (50)Adjustments to prior year additions 13Restated Closing Balance (31 March 2018) 36 425

Payables from exchange transactionsPreviously stated (1 April 2017) 39 206Adjustment to opening balance of accrued expenditure (157)Opening balance restated (1 April 2017) 39 049Transaction for the period (2 046)Adjustment to accrued expenditure 4 534Payables from exchange transactions restated (31 March 2018) 41 537

Receivables from non-exchange transactionsPreviously stated (1 April 2017) 50Adjustment to opening balance of sundry debtors (28)Opening balance restated (1 April 2017) 22Receivables from non-exchange transactions restated (31 March 2018) 22

InventoryPreviously stated (1 April 2017) 175Adjustment to opening balance of Communications Department 229Opening balance restated (1 April 2017) 404Transactions for the period 146Adjustment to stores issues for Communications Department (53)Inventory restated (31 March 2018) 497

Accumulated SurplusPreviously stated (1 April 2017) (20 280)Correction of errors 738Restated Balance as at 1 April 2017 (19 542)Deficit for the year (13 303)Previously reported (8 587)Adjustments to income and expenditure for the prior year (adjustments to Statement of Financial Performance)

(4 715)

Rounding difference (1)Restated Balance as at 31 March 2018 (32 845)




Figures in Rand2019

R ‘0002018

R ‘000

38. Prior period errors (continued)

Statement of financial performanceDepreciation as previously stated 10 296Adjustment to depreciation 50Depreciation restated 10 346

General expenditure previously stated 97 328Adjustment to Accrued Expenditure 4 534Adjustment to Additions (Computer Expenses) (13)Adjustment to stores issues for Communications Department 53Adjustment to Service in-kind benefit 1 330Rounding difference (2)

General expenditure restated 103 230

Service in-kind revenue previously stated 9 310Adjustment to Service in-kind benefit 1 330Service in-kind revenue restated 10 640

Loss on disposal of assets 867Adjustment to disposal of assets 94Loss on disposal of assets 961

39. Events after the reporting dateManagement has done an assessments of all events to date of publishing that could have an impact on the figures as represented in the financial statements and listed these below.

The President of the Republic promulgated 08 May 2019 as Election Day for the sixth democratic government. This resulted in a change in the political leadership of the Legislature as new Members were sworn in on 22 May 2019. The new Executive Committee of the Legislature as referred to in the General Information on page 1 was appointed. The change in the members of the Legislature did not have any impact on these Financial Statements as the events only occurred subsequent to year end (other than the reclassification of the Members termination benefit as a provision as disclosed in note 13).



PART FINFORMATION FOR POLITICAL PARTIES



AFRICAN NATIONAL CONGRESS

The history of South Africa depicts how organs of the state and its institution can effectively oppress the aspirations of the majority; yet the same institutions, in the hands of democratic forces, can rapidly transform and serve the interests of the entire nation for the better. Our National Parliament and Provincial, Legislatures are living examples of how we must be vigilant and delicate with organs of people’s power.

The suppression of the vast majority was founded on various laws which were enacted by the apartheid parliaments and legislatures. Such laws created race-based developments to facilitate and regulate the suppression of participation by blacks and African majority. Mahomed DP narrates the suffering and suppression of the views of the majority people as follows:

“For decades South African history has been dominated by a deep conflict between a minority which reserved for itself all control over the political instruments of the state and a majority who sought to resist that domination. Fundamental human rights became a major casualty of this conflict as the resistance of those punished by their denial was met by laws designed to counter the effectiveness of such resistance...”

With the ushering in of democracy, the ANC led Parliament and Legislatures enacted the Constitution which clearly states that the “government is based on the will of the people”.

Therefore, an institution such as the Legislature is critical in the transformation project as to ensure that such institutions are indeed organs of people’s will and power, and that the service of the people and the safeguarding of democracy is at the core of their mandate.

It is for this reason that the ANC has, since coming into power in 1994, continuously placed a high premium of the work and function of Legislatures as people’s institutions of power in ensuring repressive legislations wherein institutionalized oppressive legislations are replaced with progressive pieces of legislations. This is to give meaning to our objective of ensuring a non-racial, non-sexist, democratic, united and prosperous South Africa.

To this end, we have seen the Legislature embarking on the law making process with great vigour. Through the Ad Hoc Committee on Law Review, the institution has repealed 67 old order laws. In moving towards the ANC’s ideals of leading a transformed and developmental society, the Legislature has further passed five Provincial Acts which are as follows:

• Eastern Cape Customary Initiation Act;

• Eastern Cape Use of Official Languages Act;

• Fort Cox Interim Provisions Act;


• Eastern Cape General Laws Amendment Act; and

• Repeal of Local Government Laws Act.

We have understood that people and communities are their own agents of change. The oversight of the Executive thus seeks to ensure that the government of the people develops and implements programs which fasten the liberation of our people in every respect.

All ANC structure conferences have sought to give impression and guide how ANC Causes across all spheres should position themselves in discharging their constitutional mandate. In this regard, the Chief Whip’s Forum seeks to deliberate on all governance and service delivery matters across spheres of government in entrenching Chief Whips of the Ruling Party as Chief Whips of the respective institutions.

The above-mentioned work reflects a commitment to fulfilling the 53rd and 54th ANC National conference resolutions on the strengthening of Legislatures and governance. In this regard, they resolved on developing a more activist people-centred model of legislatures, as well as the strengthening of legislatures as part of building a developmental state among other things.

The Eastern Cape is largely dependent on government and state institutions services. The governance of such institutions thus becomes very critical. It is for this reason that we maintain that the political stability of the Legislature must be commended and harnessed as it is the pillar of its 5th Term’s success. We further encourage the rigorous oversight of State Owned Enterprises which provide crucial services to our people.

During the 5th Term we witnessed the successful hosting of various Annual Taking Legislature to the People initiatives. The recently held engagement in Mqhele Village under Amathole District’s Elliotdale demonstrated the meaningful impact that is made when all spheres of the ANC Government pull together.

As part of ensuring rigorous oversight performed by the Legislature, we are duty-bound to ensure that Portfolio Committees are more proactive in their approach. This entails moving towards holding Portfolio Committee briefings on matters of public importance frequently, as such matters have a bearing on the effective and efficient delivery of services to our people.

Going forward the ANC is of a view that Portfolio Committees should develop a five year evaluation report from an oversight perspective. Such reports are to aggregate the adopted annual oversight report within this Term. This report should be useful to Portfolio Committees, the political parties as well as Government Departments as it should be objective oversight report of each Term.

If indeed law making should be an articulation of the people’s interests, attendance and coordination of public hearings should be strengthened in the next Term.

The ANC is further convinced that the Legislature should ensure that Party Study Group meetings sit in a regular, programmatic manner. This is to ensure that Study Groups play a pivotal role in informing the cohesion and preparations for Portfolio Committees.

The improvement registered in the 2018 Matriculation Exam results ought to be encouraging as proof that the efforts which are ploughed by Members during Schools Visits and vigorous oversight are bearing results. The maintenance of this upward trajectory is of crucial importance.


By the end of 2018, the province witnessed about 20 initiates losing their lives, whilst many more were physically and mentally scared by the process. It is important to evaluate whether the Act dealing with Traditional Initiation is bearing the necessary expectations.

In ensuring continuous engagement on topical issues, the ANC Caucus hosted a successful Provincial Land Summit. This was to provide a platform for the societal partners and stakeholders to develop a common approach to the proposed amendments of Section 25 of the Constitution of South Africa.

As part of the continued fight against women abuse, the Legislature’s Women’s Caucus garnered unwavering support to women in need. Such cases ranged from victims of domestic violence, child abuse, and support to victims of the topical Timothy Omotoso saga. One of the lessons learnt from such cases is that a broader debate is required on the prevention of the abuse of religion. This incident has further invoked a discussion on whether our legislation sufficiently protects the victims of such violations, or further violates them.

A process to ensure that Parliamentary Constituency Offices are in a position to efficiently and effectively service the constituencies can never be overstated, as it is crucial to establish Constituency Offices are an extension of the Legislature in earnest. This translates to the adequate equipping of these offices in terms of human and physical resources.

Questions for Oral and Written reply played an effective role of linking constituencies with Parliament and the Executive, as matters affecting constituencies on the ground are directly responded to by the Executive.

Reports reveal slow turn overtime in the resolution of petitions this has a bearing on gaining the confidence of the general populace. There are petitions which have not been finalised and petitioners often resort to violent protests as a means of drawing Government’s attention to their concerns.

The ANC Caucus prides itself in its capacity to conduct primary research that seeks to assist in identifying stumbling blocks to the ANC-led government’s socio-economic development agenda. Various service delivery surveys were conducted in an effort to highlight challenges facing our communities, as well as establishing participants’ zeal for participation in democratic processes such as registering to vote and subsequently casting votes during General and Local Government Elections.

The ANC Caucus bade fond farewell to two Comrades who were exemplary of the selfless, all-rounder character that the ANC seeks to emulate in its cadres:

- Comrade Fezeka Loliwe – a National ANC Caucus and National Assembly Member whose roots were firmly planted in the Eastern Cape. Her contribution to the education sector as an astute educator and dedicated member of organised labour within the sector; and the support she lent to the broad Mass Democratic Movement Structures shall forever be the thread with which progressive forces will weave the quilt of unity of purpose in liberating the poorest of the poor.

- Comrade Mandla “Rema” Makhuphula – an embodiment of the congress tradition who gave his all for the betterment of the African child and did very well in turning the Department of Education around. His role as a teacher, scientist and revolutionary will be missed as the ANC chants forward in its task of establishing and entrenching unity.


DEMOCRATIC ALLIANCE

Background

The Democratic Alliance has been represented in the provincial legislature since the advent of the first democratic elections in 1994. Since then, the DA has consistently seen its support grow. Between 2009 and 2014, the DA’s membership in the provincial legislature increased from 6 to 10. Ensuring that it was, once again, the Official Opposition Party. As the Official Opposition Party in the Eastern Cape, the main focus of the DA, is its commitment to hold the government to account and to put forward alternatives. Under the period of review, the DA vigorously engaged in all portfolio committees, meetings, oversight visits, and legislature debates where we promoted our positive alternatives based on solution driven policies.The party continued to show growth during this term, and will continue to fight for the basic rights of all citizens of this province.

Planned objectives

• To build the link between communities and the legislature. We achieved this through oversight and engaging with communities in report backs and public meetings on important issues.

• To ensure that we lift the profile of the legislature through publicising our speeches, and answers to questions for written and oral replies. This was done to ensure that the role of the legislature is more broadly understood by the general public, which in turn enhances a culture of democracy in this country.

• To submit questions for written and oral reply. During the period under review, the DA submitted 1580 written questions and 302 oral questions. This trend was established at the beginning of the term.

• To use our social media platforms, as well as our legislature web page to publicise the work that we have done and to engage with the public.

During this period, we also engaged in a number of training opportunities to enhance the skills of our MPLs as well as our staff. This training has been successful in developing the capacity of both staff and MPLs.

Highlights or Achievements

One of the key highlights of the term, was the closer working relationship that was developed between the staff and the MPLs to enrich the quality of the work produced in the legislature.

The support staff to the DA, are expected to perform more than a simple administrative function, but also to assist with research, ideas for both written and oral questions, and motions, as well as to provide input with regards to speeches.

The DA MPLs, generally have a high work ethic and this shows in their attendance at committee meetings and participation in the legislature as a whole. The DA has proudly participated in every single debate in the legislature. The party has a good working relationship with the Speakership, and officials which is vital for smooth functioning of a political party in the legislature.


Work that still needs to be done:

• To ensure that there is the political will to take action against any department that do not implement the recommendations approved by portfolio committees, as well as those departments that are subject to repetitive findings and recommendations.

• The overall system of the legislature’s ICT, needs to be radically overhauled.

• Time needs to be included in the order paper for the debating of motions, and the speedy repairs to the houses of MPLs, and the supply of appropriate furniture to the offices within the legislature are also issues that need to be addressed.

• Promotion of the work that is being done in the legislature in the eyes of the public.

Recommendations

• Annual training for Parliamentary Liaison Officers by the legislature regarding the Standing Rules for replies to oral- and written questions.

• Annual training for HODs and MECs by the Legislature regarding the Standing Rules for replies to oral- and written questions.

• Political will to take action against departments that do not implement the recommendations made by portfolio committees as well as those departments that are subject to repeat findings and recommendations.

• Ensuring speedy repairs to MPL housing and the supply of appropriate furniture to offices in the legislature.

• Overhaul of the legislature’s telecommunications system, including internet and telephones.

• Replacing the shade cloth in the parking lot behind the legislature building.

• That the functionality of the speaking-timer again becomes a feature on members’ screens in the Chamber during House sittings.

• An electronic version of Hansard be made available to members on a quarterly basis.

• Time should be included on the Order Paper for the debating of motions.

• The appointment of a Chief of Staff to individual political parties, to ensure the smooth and efficient running of offices.

Conclusion

Provincial government plays an important role in the lives of the people of this province. It is only through having vigorous debates and vigilant oversight, that the legislature can play its part in improving service delivery.

The DA believes that more opportunities need to be given for the debating of motions, as well as questions for oral reply during the next term.

In this way the, not only democracy but also service delivery will be boosted in the province as consequence management will be more stringently enforced.

Yours sincerely,

BOBBY STEVENSON, MPLDA LEGISLATURE LEADER


CONGRESS OF THE PEOPLE

Background of COPE

COPE contested its first Election in 2009 and got Members into National Parliament, Provincial Legislatures and Councillors in the Local Government Elections. It is a Political Party that firmly believes in the Constitution and the Freedom Charter which was crafted and drafted by great men and women of our Country, who sacrificed their lives and some died for their belief in what is enshrined in the Constitution and the Freedom Charter. In the 2014 Elections, COPE lost many voters due to the turmoil and infighting that prevailed at the time. It has now regrouped and is once again ready to move into the stage as one of the Organisations to be counted amongst those that people will now choose to vote for.

Planned objectives for the 2014 – 2019 Term of Office

• To deliver to the Province a hope of change in the circumstances of the poor in the upliftment of the child in Schools and Universities.

• In promoting service delivery equally amongst all Communities of the Province.

• In fighting corruption and working together with all Political Parties in issues that would benefit our Province and Communities.

Highlights or Achievements of the Term

COPE had inputs in dealing with day to day Service Delivery issues in the following Portfolio Committees:

• Health

• Agriculture

• COGTA

• Rules

• Scopa

• AD-HOC Committee on Monetary Bills

COPE achieved many successes such as influencing changes and corrections in many departments, by bringing all matters that were failures of the departments to the Communities, to the HOD’S and MEC’S such as Roads, Scholar Transport, Municipal Service Delivery issues and many others, also by participating in House Debates.


Things that still needs to be done.

• Health Department

The Health Department is in crisis, it is burdened by Medico Legal Claims against the department, as a result of malpractice or neglect by Hospitals and Clinics.

Unmaintained Infrastructure in both Hospitals and Clinics, shortage of Clinical Staff, unless these issues are tackled and dealt with decisively, the Health Department will collapse. As it stands now COPE doesn’t believe that NHI could be implemented.

• Agriculture

Agriculture should not be viewed and emphasis placed only on commercial farming, there should also be extensive research made as to what model could be used to increase the capacity of your subsistence farmers, gardens in rural areas, with the goal of securing long-term food security and income

• Local Government

The system of deploying Councillors should be reviewed, there should be certain qualifications and in-depth vetting of any person wanting to be a Councillor.

When Municipalities employ people for both strategic and non-strategic positions, this should be done based on merit without looking at which Political Party a person belongs to.

We must admit that most municipalities in our Province are literally insolvent, they are not in position to sustain themselves financially, in many cases its due to unauthorised expenditure and wasteful expenditure, and the failure to repair & maintain infrastructure.

Conclusion

I must admit that it has been an exceptional pleasure working with Honourable Men and Women in the Committees, where Political affiliation was not recognised but service delivery was always our collective concern and the protection of the poor was our goal.


UNITED DEMOCRATIC MOVEMENT

The United Democratic Movement has been represented in the Eastern Cape Legislature by four Members. The UDM Members have performed their responsibilities in the Legislature to the best of their abilities. They did not absent themselves from the Committee meetings of the Legislature. Their attendance has been of high standard.

The UDM has received two types of funding from the Legislature such as the Political Party Allowance and the Caucus Funds. These funds have contributed immensely in the promotion of Democracy by the UDM among the communities of the Eastern Cape.

The funds have been utilized in accordance with the rules and policies of the Legislature and have been audited by a fully qualified firm of Auditors.

NOTES


NOTES


Documents

2019 Eastern Cape Provincial Legislature Annual Report