2019/20 - KZNTRANSPORT

2019 - 2020KZN TRANSPORT ANNUAL REPORT 1

GROWINGTOGETHERKWAZULU-NATAL

www.kzntransport.gov.za

ANNUAL REPORT2019/20VOTE 12

2019 - 2020 KZN TRANSPORT ANNUAL REPORT2

www.kzntransport.gov.za


MR. BHEKI NTULIMEC:Transport, Community Safety and Liaison


PART A: GENERAL INFORMATIONGeneral Information .................................................................................................................. 7List of Abbreviations /Acronyms ................................................................................................ 8Strategic Overview .................................................................................................................... 9Legislative and Other Mandates ......................................................................................... 9 - 10Organisational Structure ......................................................................................................... 12Foreword by Minister/MEC of Department ............................................................................ 17Remarks by the Accounting Officer ......................................................................................... 18Accounting Officer’s Statement of Responsibility for Annual Report ...................................... 19

PART B: PERFORMANCE INFORMATIONOverview of Departmental Performance ................................................................................ 21Performance Information by Programme ............................................................................... 29Transfer Payments ................................................................................................................... 34Conditional Grants ................................................................................................................... 34Donor Funds ............................................................................................................................ 36Capital Investment .................................................................................................................. 37

PART C: GOVERNANCERisk Management .................................................................................................................... 57Fraud and Corruption .............................................................................................................. 59Audit Committee Report ......................................................................................................... 60SCOPA Resolutions .................................................................................................................. 74

PART D: HUMAN RESOURCE MANAGEMENTIntroduction ........................................................................................................................... 112Human Resources Oversight Statistics .................................................................................. 113Emplyment Equity ................................................................................................................. 126Labour Relations .................................................................................................................... 137Skills Development ................................................................................................................ 139

PART E: FINANCIAL INFORMATION Report of the Auditor General ............................................................................................... 147Report of the Accounting Officer........................................................................................... 156Appropriation Statement ...................................................................................................... 165Notes to the Appropriation Statement .................................................................................. 197Statement of Financial Performance ..................................................................................... 199Statement of Financial Position ............................................................................................. 200Statement of Change in Assets .............................................................................................. 201Cash Flow Statement ............................................................................................................. 202Accounting Policies ................................................................................................................ 203Notes to the Annual Financial Statements ............................................................................ 209Annexures .............................................................................................................................. 273

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PHYSICAL ADDRESSINKOSI MHLABUNZIMA MAPHUMULO HOUSE 172 Burger StreetPietermaritzburg3201

Postal AddressPrivate Bag X9043Pietermaritzburg3200

Contact Telephone Numbers033 355 8600

Website Address:www.kzntransport.gov.za

PR280/2020ISBN: 978-0-621-48716-9


KwaZulu-Natal Department of TransportAnnual Report 2019/20

Mr. Bheki Ntuli, MEC for Transport and Community Safety and Liaison

I have the honour of submitting the Annual Report of the Department of Transport for the period of 1 April 2019 to 31 March 2020.

MR. BHEKI NTULIMEC FOR TRANSPORT, COMMUNITY SAFETY AND LIAISON

PART A: GENERAL INFORMATION




GENERALINFORMATION

PART A:



LIST OF ABBREVIATIONS / ACRONYMSDPSA Department of Public Service and AdministrationeNaTIS Electronic National Administration Traffic Information SystemEHW Employee Health and WellnessEPMDS Employee Performance Management and Development SystemERM Enterprise Risk ManagementEPWP Expanded Public Works ProgrammeGPSSBC General Public Service Sectorial Bargaining CouncilGIAMA Government Immovable Asset Management ActGWEA Government Wide Enterprise Architecture ProjectHOD Head of DepartmentHEI(s) Higher Education InstitutionsHIV Human Immunodeficiency virusHR Human ResourceKZN KwaZulu-NatalLSD Legal Services DirectorateMTEF Medium Term Expenditure FrameworkMEC Member of Executive CommitteeNEHAWU National Education, Health and Allied Workers Union OSD Occupational Specific DispensationPRASA Passenger Rail Agency of South AfricaPMDS Performance Management and Development SystemPALAMA Public Administration Leadership and Management AcademyPSC Public Service CommissionPSCBC Public Service Coordinating Bargaining CouncilPSI Public Service InductionPGDP Provincial Growth and Development PlanPGDPS Provincial Growth and Development StrategyPTOG Public Transport Operations GrantPOPCRU Police and Prisons Civil Rights UnionRRD Roads for Rural DevelopmentRNI Roads of National ImportanceSACCO Savings Clubs and Savings & Credit CooperativesSACCO Savings and Credit Co-operativesSETA Sector Education and Training AuthoritySMS Senior Management ServiceSARS South African Revenue ServicesSCM Supply Chain Management SITA State Information Technology AgencySIP2 Strategic Infrastructure Project 2TB TuberculosisVECA Vukuzakhe Emerging Contractor’s Association



STRATEGIC OVERVIEW

VISIONThe Department’s vision is: Prosperity through mobility.This means that all activities of the department and, the manner in which the department delivers services to communities, will increase the wealth and quality of life of all the citizens of the Province.

Mission statementThe Department’s mission is: We will strive to provide the public with mobility through an affordable transportation system that is safe, integrated, regulated and accessible, to meet the developmental needs of our province.

ValuesThe values of the department emanate from the Batho Pele principles. The department’s values are:

• Teamwork• Integrity• Commitment to serve• Leadership• Value for Money

STRATEGIC GOALSThe department’s strategic goals are summarised as follows:• Provide mobility and accessibility within the province to achieve 32,890 kilometres of maintained road infrastructure by 2020The department seeks, through co-operative governance, to plan, design and construct access roads and bridges (including pedestrian bridges) to communities, with the aim of improving the quality of people’s lives thereby striving to achieve an equitable, balanced and well-maintained road network in a manner that stimulates economic growth and development.• Promote an integrated transportation system through developing 3 IPTN Operational Plans.The department seeks to provide, promote and develop a well-managed, integrated land transportation system and infrastructure, optimising all modes of transport and to ensure accessibility for people and goods in 3 municipalities i.e. Hibiscus Coast Municipality, KwaDukuza Municipality and UMkhanyakude District Municipality. • Provide and promote a safe road environment by decreasing road fatalities by 30% (545/1,819) by 2020.The Department seeks to provide a safe, regulated road environment for all road users (motorised and non-motorised) through Education, Enforcement, Engineering and Evaluation.• Promote sustainable economic transformation through developing 2 empowerment programmes.The department will promote and support sustainable economic transformation through empowerment programmes and policies.

LEGISLATIVE AND OTHER MANDATESThe key legislative mandates of the department are derived mainly from the following legislation:

• Administrative Adjudication Of Road Traffic Offences, 1998 (Act No. 46 of 1998)• Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)• Criminal Procedure Act, 1977 (Act No. 51 of 1977)• Cross-Border Road Transport Act, 1998 (Act No. 4 of 1998)• Employment Equity Act, (Act No. 55 Of 1998)• Intergovernmental Relations Framework Act, 2005 (Act No.13 of 2005)• KZN Provincial Roads Act, 2001 (Act No.4 of 2001)• KZN Road Traffic Act, 1997 (Act No.7 of 1997)• National Land Transport Act, 2009 (Act No. 5 of 2009)• National Road Traffic Act, 1996 (Act No. 93 of 1996)• Occupational Health and Safety Amendment Act, 1993 (Act No. 181 of 1993)• Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000)• Promotion of Access to Information Act, 2000 (Act No. 2 of 2000)• Promotion of Administrative Justice Act, 2000 (Act No. 3 of 2000)• Public Finance Management Act, 1999 (Act No.1 of 1999)• Public Service Act, 1994 (Act No. 103 of 1994) and Regulations• Road Traffic Act, 1989 (Act No. 29 of 1989)• Road Traffic Management Corporation Act, 1999 (Act No. 20 of 1999)


• The Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996)• The Construction Industry Development Board Act, 2000 (Act No. 38 of 2000)• The Construction Regulations; 2014, Gazette 37305 to the Occupational Health and Safety Act; 1993 (Act No 85 of1993)• The National Water Amendment Act; 2014 (Act No. 27 of 2014) and the accompanying Draft Regulations Regarding the

Procedural Requirements for Licence Applications in terms of Section 26(1) (k) of the National Water Act; 1998 (Act No. 36 of 1998)

• The Spatial Planning and Land Use Management Act; 2013 (Act No. 16 of 2013) (SPLUMA)• Preferential Procurement Regulations; 1 April 2017• National Treasury Standard for Infrastructure Procurement and Delivery Management SIPDM – First Edition (October 2015)• The National Land Transport Act; 2009 (Act No. 5 of 2009)

OTHER MANDATES• Draft National Scholar Transport Policy, 2014• Draft Non-Motorised Transport Policy, December 2008 • Growth, Employment and Redistribution: A Macro-economic Strategy (GEAR), (June 1996)• Integrated Sustainable Rural Development Strategy, November 2005• KZN White Paper on Freight Transport Policy (October 2004)• Local Roads For Rural Development In Kwazulu-Natal, March 1997• National Development Plan, 2030• National Freight Logistics Strategy (October 2005)• National Infrastructure Plan, 2014• National Road Safety Strategy, 2006 Onwards• New Growth Path Framework, 2011• Provincial Growth and Development Plan, 2019• Provincial Spatial Economic Development Strategy, October 2006• Public Transport Strategy and Action Plan, 2007• Road Infrastructure Strategic Framework for South Africa (October 2006)• Rural Transport Strategy for South Africa 2007• The National Spatial Development Perspective (2006)• White Paper on National Transport Policy, 1996• African Union (AU) Agenda, 2063 • Transforming our World : The 2030 Agenda for Sustainable Development; 2015 • National Youth Policy 2015 – 2020 and National Youth Plan; 2020• KZN Poverty Eradication Master Plan, 2014 (PEMP) • The National Land Transport Strategic Framework; (2017-2022)• National Road Safety Strategy (2016-2030); 1 April 2017





MR. C. STRETCHDirector:Freight Transport

MR. S.A. THWALADirector:Public Transport Services

MR. S.M. MNOMIYA Director: Public Transportation Policy Planning

MS N. DLAMINIActing Director: Human Resource Practices

MS S. SIBISIActing Director: Human ResourceDevelopment

MS. T.V. NZUZADirector: Labour Relations

MR. S.J. LUNGAChief Director: Provincial Regulatory Entity

MS. B.T. DUZE Acting Chief Director: Public and Freight Transport

MR. S.S NXUMALOChief Director: Road Safety & Traffic Management

MR. L.X.K. MTAMBOChief Director:Empangeni Region

MS. P.F. SIBIYADirector: Construction

MS. P. SITHEBEDirector: Expanded Public Works Programme

MR. S.S. NKOSIDeputy Director General: Transport Infrastructure & Regional Services

MR. J.S. MBHELEChief Director: Durban Region

MS. B.N.P. NOGWANYAChief Director: Ladysmith Region

MS. B.N NTOMBELAChief Director: Pietermaritzburg Region

MR. S.S. NKOSIActing Director: Engineering Services

MS. T.P. MABASODirector: Road Safety

MR. V. CHETTYDirector: Road Traffic Inspectorate

MR. S. SITHOLEDirector: Public Transport Enforcement Services

MR. R. ABRAMSONActing Director: Motor Transport Services

MS. F.M. SITHOLEDeputy Director General: Transportation Services

MR. S.H. NTULIActing Director: Public Transport Monitoring and Compliance

MS. N. HLOPHEDirector: Regulation & Support

VACANTDirector: Regional Support

MS. S. MNGOMEZULUDirector: Technology Tranfer

MR. B.S. GUMBIHead of Department

MS. S. NGUBODeputy Director General: Corporate Management Services

MR. BHEKI NTULIMEC: Transport, Community Safety and Liaison

MS. M.C. ZWANEChief Director: Human Resource Management



MS. G.P. XABAChief Director: Strategic Management

MR. P. DORKINDirector: Policy and Planning

MS. T.T. MBONAMBI Director: Executive Support

MS. L. MDLETSHE Director: Empowerment Programme

MS. B.T. DUZE Director: Monitoring and Evaluation

MR. S. NGCOBODirector: Organisational Development

MS. D.B. MNYANDUDirector: Risk Management

MR. K.N. NCALANEActing Chief Director: Communications

MR. K.N. NCALANEDirector: Media Liaison and Public Relations

MS. N.N. MCETYWADirector: Communication Support

MS. P.P. SITHOLE Acting Director: Legal Services

MS. K. GOUNDERDirector: Corporate Support Services

MR. N.P. NDAMANEDirector: Information Technology Management Services

MS. V.N. DLADLADirector: Security Services

MR. W. EVANSChief Financial Officer

MR. L. MASHABA Director: Ministerial Support

MR. T.N.A. NKOSIDirector: Financial Accounting

MS. S. KUNENEDirector: Management Accounting

MR. N. SANGWENIDirector: Supply Chain Management

ORGANOGRAMORGANISATIONAL STRUCTURE






FOREWORD BY THE MECMr. BHEKI NTULIMEC for Transport, Community Safety and Liaison

We have come to an end of one of the most exciting years. I say so with authority because ever since I assumed the role of Executive Authority, I have seen the department working hard and beyond to deliver on its mandate. Again, I wish to pass my appreciation to former MEC Mxolisi Kaunda, for having steered the ship to achieving more milestones. This programme of changing peoples’ lives is far from over; however, we are making a notable dent to underdevelopment.

As you are aware, the sixth administration started a new term with a clear vision and renewed determination to accelerate service delivery and address with greater urgency the triple challenges of unemployment, poverty and inequality. Of significant importance is the fact that this financial year marks the end of our five-year strategic plan. I am proud that some of the key strategic deliverable that the department had set itself were achieved – however, there are others which remain stubborn and still need to be pursued.

Guided by the strategic vision, we continued to implement all our programmes informed by the noble imperative of transforming the transport sector and its economic value chain. Through our iGula programme we succeeded in delivering transformation to the vulnerable groups, targeted groups and Africans in particular. We have no doubt to believe that as we end this financial year, we have laid an important foundation which is a stepping stone towards building an inclusive economy within the transport sector. Our vision moving forward is to expand our role and coordinate the entire sector to be galvanized towards the development of one provincial transport sector-wide plan so that we are able to measure the impact in transforming our economy.

As we continue to deliver upgraded roads from gravel to tar, many of our citizens have expressed deep sense of appreciation as this will restore their dignity and improve economic potential. Equally, the work of building bridges to connect our people and maintaining the existing provincial road network has been hugely welcomed as important measures in driving economic sustainability and growth in the province. Through such infrastructure delivery, we managed

to create much needed jobs, skills transfer, and empowered women headed households through programmes such as Zibambele and many others targeting the youth.

The area of public transport remains with challenges which needs to be addressed at a policy level. Central to this, is an integrated public transport system that will address the demographics and rural nature of many of our district municipalities. Such plans need to be adequately researched and be resourced to achieve the quality of distribution of our limited resources thus expanding beneficiation to our locals. We have already started in uMkhanyakude and we intend to expand to other districts with similar plans, which will be tailor-made to address the need for that particular district.

Again, the area of subsidized public transport remains skewed and is still in the hands of the few. Whilst, eleven negotiated contracts are now in the hands of Africans, more work still need to be done. As we seek to integrate more role players to the transport main stream, we need to continue working hard in building the stability in the taxi industry.

In this financial year, we made progress in addressing administrative shortcomings, including moving towards the finalization of the organogram and addressing the issue of improving audit performance of the Department. In the new financial year, we aim to finalize the organizational structure to build strong institutional capacity. This will also enable us to fight the scourge of corruption and maladministration which undermines the progress we have made in the past twenty-five years of democracy.

In conclusion, we will draw lessons from the experiences of this financial year and other past financial years in improving planning. The factors that resulted to the under expenditure in this financial must be addressed with great urgency to ensure that this does not occur in future. I have no reason to doubt that moving forward, this department will reclaim its strategic role and continue to be a force to be reckoned with.

ENDS


REMARKS BY THE ACCOUNTING OFFICERHead of Department, Mr B.S Gumbi

The financial year of 2019/2020 saw us begin the 6th administration under the democratic dispensation. As with the other previous administration the department saw a change in political leadership when Mr Mxolisi Kaunda our now former MEC was redeployed to serve as the Mayor of the Ethekwini Metropolitan shortly after the 2019 elections. MEC, Mr Bheki Ntuli as a Member of the Executive Council appointed to oversee this department.

As with the previous political changes in leadership this transition was once again smooth and did not cause any instabilities within the department. We thank Mr Kaunda for the guidance that he has provided in the last three years that he spent in the Department. His visionary leadership helped to propel our transformational agenda. MEC Ntuli has picked up the baton and is continuing to build on a solid foundation laid by all his predecessors.

We are proud that in the past two years notable progress has been made in institutionalizing Igula into the Department and we are pleased to report that it is now part of the performance measure of all senior managers and is boldly reflecting on the performance plans of the department.

Since the policy was endorsed by the Provincial Executive Council, two years ago, great strides have been made to translate this into tangible action and we must commend the department for adapting and being the lead agent for transformation. The directive now, as we begin this new term of office is to accelerate its implementation.

For us to successfully do this we need to have a corps of skilled and professional public servants of a high work ethic. It is for this reason that we announced that we would be conducting an internal skills audit. This will assist us to assess our skills gap and technological resources which we will require in order to function optimally as we enter the Fourth Industrial Revolution. The skills audit will also assist us to build an internal capacity to reduce reliance on consultants. Some of the interventions we have undertaken to reduce reliance on consultants include training and supporting our technicians to register as professionals.

The Department of Transport continues to make huge strides in increasing the equity targets. We are pleased to report

that in this financial year we have surpassed the stipulated national target of 50% at senior management level. Currently, women’s representation in senior management is sitting at 52.78%. Women also make up 47.4% of the total permanent staff population in the department. Progress has also been made towards achieving equity with regards to People with Disabilities (PWDS) with the percentage of people with disabilities having grown to 2 percent by the end of 2018/19 financial year.

The Department also remains committed in ensuring clean governance. Despite some qualifications in the past audits, we are making progress in turning our finances around through our Audit Improvement Strategy. We are also continuing to fight fraud and corruption and mitigating any risk factors brought to our attention by our Risk Managemnt Directorate. Already some officials have been dismissed and some are now serving jail sentences. We want to go beyond this and recovery the money stolen from the poor.

We are also addressing the issue of capacity in our planning section and improve our supply chain management processes to avoid under-expenditure in the future financial years.The organizational structure of the department was submitted to the Department of Public Service and Administration in August 2018 following the approval by Provincial Treasury and the Office of the Premier. We are currently awaiting to obtain a concurrence from the Department of Public Service and Administration (DPSA)

In the past financial year, we also adopted a different approach in infrastructure planning. Our approach in wanting to satisfy every communities in all corners of the province has resulted in us starting and stopping projects. Whilst this assists us in having footprints in all corners of the province the pace and turnaround time of completing these projects is slow. Thus our prioritization model will see us identify key projects which are essential corridors to development, economic growth, tourism and agricultural potential as well as those that are serving important amenities in various communities. In this regard we also welcome the commitment by the South African National Roads Agency Limited (SANRAL) who are planning to upgrade two national roads in the province namely the N2 and N3 corridor. The upgrading of this national roads will boost our economy in the long term and improve road safety as it will ease traffic congestion between Pietermaritzburg and Durban.

As we implement this prioritization model, we also remain concerned at the many projects that have been suspended by defaulting contractors. We thus commissioned a technical investigation into the causes of the problem and we are still due to hold a Provincial Transport Contractor Indaba to further unpack challenges in the construction industry

ENDS



STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF THE ACCURACY OF THE ANNUAL REPORTTo the best of my knowledge and belief, I confirm the following: To the best of my knowledge and belief, I confirm the following:All information and amounts disclosed throughout the annual report are consistent.The annual report is complete, accurate and is free from any omissions.The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury.The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks and guidelines issued by the National Treasury.The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information.The Accounting Officer is responsible for establishing, and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.The external auditors are engaged to express an independent

opinion on the annual financial statements.In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the department for the financial year ended 31 March 2020.

Yours faithfully

DATE: 31 MAY 2019




PERFORMANCE INFORMATION

PART B:



UPDATED SITUATION ANALYSIS

The Department of Transport aims to be a front runner in meeting government’s mandates of creating employment, reducing poverty and inequality by fully supporting the interventions of the National Development Plan (NDP); 2030 and the Medium Term Strategic Framework (MTSF) 2014 – 2019. These priorities, together with radical socio-economic transformation have been the foundation that has greatly influenced our Departmental policies, projects and plans.

Furthermore, the Draft Medium - Term Strategic Framework (MTSF) 2019 – 2024, which is high-level strategic document to guide the 5- year implementation and monitoring of the NDP 2030. The Draft MTSF identifies the Priorities to be undertaken during the 2019-2024 period to put the country on a positive trajectory towards the achievement of the 2030 vision. The priorities of the Draft MTSF have been analysed and the Department is aligned to the relevant priorities, especially those in respective of Priority 1 (Transform the Economy to Serve People and Priority 4 (Strengthen Governance and Public Institutions).

It is common knowledge that the transport sector is an integral contributor to the success of the country’s economy as well as a critical factor in the quest to create employment and access to social development by virtue of the opportunities created by the resultant mobility of goods and people. Thus, the Department’s main focus, at a strategic level is to do all we can to ensure a sustainable, efficient transport sector that provides and supports economic and social opportunities. Furthermore, we also strive for outcomes that benefit the greater need of the people, Province and country. We can only achieve this by creating a seamless, cost-effective, efficient, safe and well-maintained transport system due to the impact on the economy and on society.

The KwaZulu-Natal Department of Transport is committed to the principles outlined in the national policy guidelines as previously mentioned, and is of the view that efficient and sustainable transport infrastructure is fundamental to the promotion of economic development, social development, improved service delivery, good governance, social cohesion and improving the standard of living of all South Africans. In the medium term, the Department is determined to achieve the following five strategic imperatives:

• Improving our administrative governance and skills base to create an effective and responsive Department that is accountable and achieves a clean audit;

• implementing the Radical Socio-Economic Transformation programme with gusto;

• strengthening the delivery of roads and transportation infrastructure programmes;

• engaging communities and stakeholders as partners, as well as strengthening existing partnerships, in implementing Departmental programmes; and

• creating an effective traffic management and a safe road environment to reduce road crashes and fatalities.

PERFORMANCE DELIVERY ENVIRONMENTDuring the next Medium-Term Expenditure Framework, the Department has made a conscious decision to vehemently promote and implement radical socio-economic transformation. We will be supporting the principles of radical socio-economic transformation through our Integrated Transport Sector Socio-Economic Transformation methodology encapsulated in our IGULA (“Inclusive Growth, Unity and Economic Liberation of Africans in particular and Blacks in General”) Programme. Our focus is on empowering Africans and on transforming the transport sector in line with the demographics of the Province.

This decision will serve as a foundation as we undertake our core functions and as we support the other government’s mandates, particularly those in respect of, poverty alleviation, job creation and infrastructure development. Other spin-offs are changed patterns of ownership and management control in businesses; skills development; enterprise and supplier development; as well as socio-economic development.

Our IGULA Programme and supporting policies are implemented while focussing on the entire transportation sector and the need to ensure that we continue to unlock the growth of our Province’s economy especially as KwaZulu-Natal is the main link to the continent and other economic hubs with Durban being Africa’s busiest general cargo port and



home to one of the largest and busiest container terminals in the Southern Hemisphere.

The Department will continue to engage with all our stakeholders in the transport subsectors on our policies, plans and planned activities. This engagement includes service delivery as well as transformation issues.

Our engagements also extend to our counterparts in the municipal and national sphere where we are closely involved in planning and sector-specific issues as well as in lending support where there are capacity constraints. This support is extended to the municipalities in respect of their transportation services.

As indicated in the preceding paragraphs and in our last APP, the Department’s key focus for the current and forthcoming years is to achieve radical socio-economic transformation. To this end, the Department has committed 73 percent of our total budget into roads and transportation infrastructure that create equitable access to communities and to support and promote economic development and growth.

In our quest to create equitable access through an equitable and maintained road network, our primary infrastructure activities are dominantly on road infrastructure development in the rural areas. Our efforts have been yielded an 164 additional kilometres of road being constructed during 2017/2018. These additional kilometres of road will improve communities’ access roads to schools, clinics, social and economic infrastructure so that communities are properly and safely connected to essential services.

Furthermore, while we are undertaking our construction and maintenance activities, we will continue advancing work to the identified target groups as per our IGULA Programme.

During 2017/2018, the construction of P577 was completed and the road is opened to traffic. The Ethekwini Municipality is currently constructing the last section of the BRT lanes on the southern section of the road near Pinetown.

The higher economic activity and higher traffic volumes in urban areas has resulted in increased and more frequent maintenance needs. Hence during 2017/2018, our infrastructure maintenance activities were predominantly on the road network in urban areas.

Our construction activities during 2017/2018 were primarily in rural areas where the need is greater. Our activities yielded a further 18 major vehicle bridges and 6 pedestrian bridges in the rural areas, thereby improving access to more communities.

We will continue to implement our successful Zibambele Programme and the Vukuzakhe Emerging Contractor Development Programme which have yielded many positive results in terms of social and economic development.

The Department faces a constant and ongoing battle in respect of adequate resource allocation, especially in respect of financial resources, to ensure that acceptable standards of service for the Provincial Road Network are continued. The situation is exacerbated by the need to ensure that maintenance of the road network is unbroken and that it is renewed or replaced timely so that it is well-managed and preserved.

The situation was worsened last year as our conditional grant funding decreased in an environment of consistently very limited financial resources, thereby affecting our ability to provide the services we would have liked to.

These challenges and constraints have placed the Department in a slightly negative light as 54% of the citizens of the Province have rated the Department as performing poorly to fairly in the area of provincial road maintenance. While the results indicate less than favourable performance, we are mindful that communities always demand and expect that roads in their areas be upgraded to blacktop, oblivious of the need to prioritise maintenance and upgrading activities for the benefit of the Province as a whole.

It must be noted that while we view the outcome of the survey in respect of road maintenance as less than favourable, the report on the outcomes of the entire survey state that “the provincial government was also rated positively by a considerable number of citizens on “maintaining provincial roads” (45,6%)”.

Despite these challenges, we are brazenly aware of the need to have transport infrastructure that is well-maintained so that it supports economic development, thereby unlocking economic potential of the Province and country and of the critical role we play in linking rural communities to educational, social and educational services. Hence we persevere in our endeavours by streamlining our plans and projects. We thus give priority to projects that facilitate and support economic development and access.

The limited resource availability over the years, has resulted in backlogs in terms of providing a minimum equity network in the Province, despite our concerted efforts at creating access but we are making concerted efforts at



reducing this backlog in the long term despite challenges in respect of funding, etc.

The reduction of the backlogs, both in construction and maintenance, will always rely on the budget allocation received. As an example, the Department presently requires approximately R16 billion per year to adequately maintain the road network. Our current Maintenance budget is only R3,67 billion, which is significantly lower than the required budget. The effect of this has seen our blacktop road condition deteriorate from 36% to 57% in the “poor to very poor road” category while the industry desired target is less than 10%.

Similarly in respect of construction, the Department requires R16 billion per year to achieve an equitable road network and our current budget is only R3,44 billion. Despite these funding shortfalls the Department is still managing to reduce the shortfall.

• The current backlog may be quantified as 9,237kms. This figure has been determined as follows:

• the extent of the minimum equity network was originally determined in 1999 as 42,000km length. This was identified through an extensive consultation process with rural communities to identify rural access needs;

• In 2005, a desktop study was undertaken to verify the extent of the minimum equity network;

• In 2006, this was adjusted to take into account the change in the boundaries of the Province. The extent of the minimum equity network was assessed as approximately 42,025km in length. The extent of the network with an indication of the backlog, rounded to the closest 100km, as at 30 June 2018, is as follows :

Provincial road classMinimum Equity Network (kms)

Existing (kms) Gap (kms)

Provincial Main Roads (P) 13 300 13 164 136Provincial District Roads (D) 14 000 11 886 2 114Provincial Local Roads (L) 14 725 7 930 6 795Total 42 025 31 979 9 046

The other major challenge that the Department is constantly faced with is the increased demand for both construction and maintenance of the road network despite the disproportionate increase in funding. As we have alluded to in our previous APP, previous experience indicates that maintenance activities have been allocated 60% of the budget expenditure with the balance of 40% being allocated to construction.

In an effort to best meet our demands, we ensure that our MTEF business plans are strategically based on the necessary social, economic and environmental requirements of the Province and country. Furthermore, our revised 10 year Road Asset Management Plan, sets out detail on allocating more budget towards maintenance activities which will be boosted by the additional budget from the Provincial Road Maintenance Conditional Grant.

The rising fuel costs have also impacted on the Department and our operations. These increases impact upon budgets and have had a slight effect on delivery in respect of infrastructure and on our enforcement activities.

A serious challenge to our planning and delivery relates to the political environment that affects our prioritisation of projects. Sometimes the list of projects that are planned for the MTEF change drastically as political objectives are different to technical objectives. This adversely affects the Department as the projects that are under design and those under review for approval purposes become redundant and different projects become a priority.

Changes in project prioritisation mean that projects with approved designs do not get to be constructed in the planned financial year and are deferred to other financial years. This results in wasteful expenditure as the condition of the road deteriorates with every passing year, a new design is required which necessitates more funds for the same project prior to construction commencement.



Our efforts at delivering services are also faced with other challenges as highlighted below :

• new ward councillors are elected resulting in new political priorities;

• the demand for the upgrading of gravel roads to blacktop or concrete surface has increased; and

• communities have prevented maintenance teams from carrying out blading or gravelling projects that will assist in improving the condition of the road, as they are demanding road upgrades.

To address these issues, the Department is currently rolling out a prioritisation model for the upgrade of roads and bridges and it is anticipated that there will be greater awareness amongst communities regarding the selection of projects resulting in fewer challenges as the project prioritisation system will allow for the comparison and prioritisation of projects on a technical and scientific basis.

Community interference in current projects has also increased with the implementation of radical socio-economic transformation as some local business fora are stopping work to demand that they be permitted to participate in those projects through sub-contracting. This situation will have to be managed within the parameters of the Preferential Procurement Policy Framework Act Regulations.

This situation is compounded by the Vukuzakhe Association as they are expecting that the sub-contracted works will be allocated to only members of their Association.

In addition, Military Veterans are also expecting the Department to have set aside contracts that will only be allocated to its members and they are expecting the Department to amend existing policies to allow companies owned by Military Veterans to participate in all Regions and not have boundaries like other companies.

While we implement the principles of radical socio-economic transformation through targeted-work (Vukuzakhe and target groups), we will have to undertake careful monitoring of our projects in order to ensure that job creation targets are met on a project level while we still deliver quality assets.

The challenge of community expectations and co-operation is growing and is evident by the impact of the demands/influence by communities on how we execute our projects through service delivery protests and demands. Service delivery demands from communities are increasing and communities are becoming more vocal and an increasing hindrance to our service delivery.

The Water Use License Applications (WULA) provisions also require applicants to stipulate the volumes of water to be extracted from surrounding water sources during construction and if the area is badly affected by drought then the application is unsuccessful which can severely delay the start of projects. While there have been good rains, some parts of the country is still in a drought situation and the recovery has not been sufficient to relax the restrictions to water use. This impacts on some of our projects.

Departmental projects are also negatively affected by environmental factors. As an example of this, the Department utilises natural resources from borrow pits during construction. Sometime these become contaminated due to spillages etc. and the supply dwindles.

Furthermore, accessing gravel material from borrow pits is still a challenge with employees facing resistance from communities and some traditional leaders wanting the Department to pay royalties for the material taken out of borrow pits for road construction and maintenance activities. Royalties for materials mined can only be paid if these borrow pits are registered with the Department of Minerals and Energy. Secondly, this would have a significant cost increase for road building and maintenance. The Department is currently developing a strategy do deal with this issue.

The building of houses and structures in the country is also becoming a challenge as communities, obliviously, erect structures on the Department’s road reserve and building line requirements and these encroach upon the road reserve. Negotiations with these communities are then required in order to utilise the Department’s road reserve prior to any road construction occurring and frequently compensation is expected by community members before they relocate.

The Department’s challenge regarding uncoordinated planning outside of the formal urban areas with regard to the provision of mobility routes and access roads, with adequate road reserve width, continues. Consultation with the municipal planners and communities on the identification and reservation of land for road reserves, will continue.



Similarly, the Department will continue liaising with municipalities and land owners in respect of Departmental participation in projects on urban access roads within dense settlement areas. This situation has arisen due to an obscuring of responsibilities in respect of roads between the Department and the municipalities but our involvement will continue as we do not want service delivery to be compromised.

We are also proud that, through the auspices of the Expanded Public Works Programme (EPWP), we have created almost 42,500 jobs during 2019/2020. Hence, the Department will continue to support the Expanded Public Works Programme’s (EPWP) job creation initiatives in labour intensive programmes through road maintenance and construction, due to the benefits on an economic and social level. The focus areas for EPWP include safety maintenance, routine maintenance, new infrastructure and special maintenance. The Labour Intensive Programmes are funded through the EPWP Integrated Grant, the Provincial Roads Maintenance Grant as well as the Equitable Share.

Our programmes, policies and activities continue to support provincial priority areas and objectives as they seek to institute food security; fight disease and poverty; empower Women, Youth, Persons with Disabilities and Military Veterans despite the downturn in the economy which results in funding limitations, deferring of projects to outer financial years and ultimately limitations on service delivery.

In an effort to further advance the principles and objectives of job creation and poverty alleviation through the EPWP, the Department will create awareness of these objectives with the members of the recently established Transportation Committees. It is envisaged that this awareness will cascade down to communities so that there is greater support for Departmental projects.

The freight industry continues to be an essential contributor to the economy’s growth and sustainability and the Department is continually monitoring trends in the industry to apply best practise that will yield benefits for all. The challenge of balancing the economic benefits of the freight industry against the need to preserve the Province’s road network while protecting the environment, is mammoth and an ongoing concern.

In order to mitigate this challenge, the Department will continue to implement the Performance Based Standards (PBS) system in respect of a heavy vehicle’s dynamics performance. PBS vehicles must comply with certain prescribed static and dynamic performance standards and by utilising better vehicle designs, the PBS initiative has the ability to distribute payloads in a more uniform and efficient manner while ensuring a safer operational standard. This results in extra carrying capacity of the heavy vehicles thereby improving the productivity of the vehicle and its operator. Ultimately, there is a reduction in the number of freight vehicles on the road network.

The project has grown within the Province and now extends to other sectors such as mining, fuel, light and heavy motor vehicles, sugar, molten aluminium and alcoholic beverages. Needless to say, we hope to expand to more industries and yield greater benefits.

Public transport in the Province remains a mandate and a challenge that requires joint collaboration among the different spheres of government and the public transport industry itself. This is especially challenging in light of the instability in the industry and the increased prevalence of violent conflict in recent months due to route intruders.

Instability has continued to plague the public transport industry, despite efforts and interventions to minimise conflict. The Department will continue to engage the services of experts in the area of conflict resolution due our limited capacity in this area so that we can address this major challenge and ensure the safety of our commuters.

The role of municipalities as well as their limited capacity in public transport cannot be overlooked and as such the Department will continue to provide continuous training to municipal employees dealing with issues of public so that regulation of public transport in the Province improves.

The Department will persist with our endeavours to reduce the scourge of public transport violence that negatively impacts upon commuters and society at large. We will strengthen and solidify our co-operation and co-ordination activities with other enforcement agencies (SAPS, Crime Intelligence, Organised Crime Unit and Department of Justice) to reduce such negativities on our roads.

We will continue fostering the partnership we have developed over the years with SANTACO, not only in our quest to promote good customer service and taxi driver behaviour but also to reduce fatalities on the road and to promote road safety in general.

A decision was taken prior to the 2018/2019 financial year that the provision of learner transport would move from the Department of Transport to the Department of Education. Hence the Department’s 2018/2019 APP was void of any projected targets in respect of learner transport. However, that original decision was rescinded and the responsibility



for learner transport has now reverted back to the Department of Transport.

The Department’s strategic goal of reducing fatalities has proved to be a difficult one to meet. This is due to the fact that we are not in pure control of the goal and we rely heavily on the motoring public and other road users to support our efforts at reducing accidents and fatalities.

Despite our efforts at educating the public on road safety matters, patrolling the roads and enforcing the rules of the road, there has been an increase in the number of fatalities on the roads. There were 1,819 fatalities in the 2014/2015 financial year (baseline for the MTSF) and this number has increased, on average, by 374 fatalities annually, in the last 3 financial years. Clearly this is a dismal situation that we hope to reverse.

Our slogan of “Road Safety is Our Collective Responsibility” clearly spells out that we require co-operation and acceptance of responsibility from all stakeholders, if we are to succeed in our efforts. Hence we are continually seeking new ways to approach road safety so that people’s lives are saved by reducing crashes. We will also continue with our law enforcement activities, awareness programmes and partnerships developed with organisations in the sector. Clearly, we need joint and collaborative efforts at curbing fatalities and crashes.

Ultimately there is a need to change road user behaviour in the country which will contribute positively to this Province as well, especially as our Province has many visitors from other provinces during peak seasons and for major events hosted in the Province.

The Department’s interventions at strengthening our traffic law enforcement activities include increasing visibility on the road, especially during peak traffic weekends and holidays, and at times when many road crashes occur. As part of these efforts to achieve our goal of reducing fatalities, our “Closing the Ranks” programme which entails staging road blocks from Thursday through to Sundays and the “Safety Fridays” campaigns continue, in conjunction with all other law enforcement agencies.

The Department’s efforts at enforcement have been frustrated by the ever-increasing protests against a lack of service delivery, growing unemployment and rising fuel prices. These protests have resulted in protesters blockading national and provincial roads. Coupled with the blockades, there have been instances of looting, violence, arson and damage to the road infrastructure by the protesters.

Furthermore, the emerging trend of blockages on the key corridors by truck drivers has resulted huge traffic disruptions, traffic backlogs, delays in the delivery of goods and compromised safety of all other road users. The Department’s law enforcement officers have had to stretch already limited resources to conduct intensive and extended enforcement functions in patrolling and clearing roads that have been blockaded as well as clear backlogs in traffic. This has impacted upon planned enforcement activities as employees have to be redeployed to problem areas.

These service delivery protests not only impact on Departmental employees and operations but also cause huge losses to the economy of the country as major routes are affected, key infrastructure is damaged and freight is either damaged or looted with trucks being burned.

The Department’s enforcement activities and successes have been dealt a blow by some magistrates in the Pietermaritzburg jurisdictional area withdrawing speed prosecution cases where the range has exceeded 400 meters. However, this range was previously set at 500 metres by the 2012 prosecution guidelines. The magistrates are now using 1997 guidelines which frustrates our efforts. This issue is being addressed with the Road Traffic Management Corporation.

The Department’s efforts at improving road safety, reducing accidents and reducing fatalities through our strategies and programmes in the public transport and law enforcement units will continue, despite the challenges faced as the number of fatalities and crashes resulting in fatalities remain a major concern for the Department.

The Department continues supporting government’s mandate of job creation, creating sustainable communities, eliminating poverty and promoting economic transformation through all our policies, activities and programmes.

Our commitment to creating jobs is also underpinned by the results of the Statistics South Africa’s 2018 KwaZulu-Natal Citizen Satisfaction Survey where the results indicate that almost 63% of the citizens of the Province ranked job creation as their main priority. Clearly as government, we are bound to address citizens’ needs through our EPWP and IGULA Programme; amongst others.

The Department is now also faced with the ever-increasing threats of disruptions to electricity supply through load shedding. Not only does this impact upon employees’ productivity but it also results in disruptions to services at



our various licensing offices. This ongoing challenge seems to be a never-ending threat and contingency plans to economically mitigate the blackouts, will have to be explored.

The Department is committed to addressing all challenges we face in delivering services. However it must be acknowledged that not all challenges can be mitigated (eg. drought implications, rising fuels costs, escalating number of service delivery protests, etc). Nonetheless all necessary steps to mitigate challenges that are within our control are continually explored.

ORGANISATIONAL ENVIRONMENTThe Department’s commitment to Radical Socio-Economic Transformation is firm and this is now primarily our strategic policy thrust. This informs all activities of our Department both internally, including human resources, and in terms of our relations with all our stakeholders including suppliers, service providers, targeted groups and most importantly citizens.

In the past few months we have conducted a review of, and developed new policies, systems and processes to effectively increase participation of, particularly Africans, and Blacks in general, in the transport sector value chain.

As part of our Radical Socio-Economic Transformation interventions, we are promoting all the targeted sectors which are Women, Youth, Persons with Disabilities, Military Veterans, and Widows in the Public Transport sub-sector. The Department will strive to achieve set targets in all our procurement. These targets are 35% Youth, 30% Women, 5% Persons with Disabilities and 10% Military Veterans.

Targeted groups continue to be dominant in all Departmental programmes, policies and functions especially in those relating to the employment of labour in infrastructure construction and maintenance projects, through our empowerment initiatives, our transformation mandates and in our recruitment processes. The Department will continue to consciously give preference to both Women and Persons with Disabilities when we are able to fill vacant posts.

While implementing plans to satisfy these government’s mandates, the Department remains committed to good governance which is evidenced by our performance in the Management Performance Assessment Tool (MPAT).

There was a decrease (from 66% to 55%) in our overall Management Performance Assessment Tool (MPAT) results from 2016 to the 2017 results. There was a decrease in scores in Governance and Accountability (KPA 2) from 70% to 50%; and Financial Management (KPA 3) from 89% to 60% Key Performance Areas (KPAs) with an improvement in the Strategic Management (KPA 1) from 80% to 100% and in the Human Resource Management KPA (KPA 3) from 36% to 38%.


PART B: PERFORMANCE INFORMATION



PERFORMANCE INFORMATION BY PROGRAMMEPROGRAMME 1: ADMINISTRATION

The purpose of this programme is to provide the Department with the overall management and administrative, strategic, financial and corporate support services in order to ensure that it delivers on its mandate in an integrated, efficient, effective and sustainable manner.

This includes publicly funded goods and services utilised for governance, management, research and administration, as well as general office services, e.g. cleaning and security services.

Programme 1 includes the Office of the MEC, Management of the Department, Corporate Support and Departmental Strategy.

Linking performance with budgets

Programme/

Sub Programme

2019/19 2018/19

Final

Appropriation

Actual Ex-penditure

(Over)/

Under Expenditure

Final

Appropriation

Actual Expenditure

(Over)/

Under Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Administration

Office of the MEC 10 790 10 789 1 14 073 14 073 -

Management 7 281 7 281 11 924 11 924 -

Corporate Support 385 530 377 456 8 074 346 065 346 065 -

Departmental Strategy 38 511 38 511 19 883 19 883 -

Total 442 112 434 037 8 075 391 945 391 945 -



PROGRAMME 2: TRANSPORT INFRASTRUCTURE

The purpose of this programme is to promote accessibility and the safe, affordable movement of people, goods and services through the delivery and maintenance of transport infrastructure that is sustainable, integrated and environmentally sensitive, and which supports and facilitates social empowerment and economic growth.

This programme includes all expenditure of a current and capital nature relating to the planning, design, construction, rehabilitation, maintenance and repair of all infrastructure supporting all modes of transport. It also includes project expenditure on the Expanded Public Works Programme done in support of the infrastructure provision.

The programme consists of five sub-programmes in line with the sector specific budget format, namely: Programme Support Infrastructure, Infrastructure Planning, Infrastructure Design, Construction and Maintenance.

RECENT OUTPUTSImproving road infrastructure is central to the development of the provincial economy. The Department continues to invest the bulk of its budget into existing infrastructure to improve the maintenance and reduce the backlog of ailing roads and bridges.

The challenges which affected the department was that, many of our infrastructure projects were hard hit by heavy flooding in the province. Compounding our challenges was that the Department had to terminate approximately 25 contracts under its Capital Projects which included bridges and road contracts. This delayed the commencement of new projects.

The Department is also changing its approach to planning where it is now focusing on building fewer projects and finishing them on time. This will enhance the Department’s planning and reduce despondency with communities. Despite all the challenges the Department was able to complete many infrastructure projects, including tarred roads, gravel and new bridges.


Programme/

Sub Programme

2019/20 2018/19

Final Appropri-ation

Actual Expenditure

(Over)/

Under Expenditure

Final Appro-priation

Actual Ex-penditure

(Over)/

Under Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Transport Infrastructure

Programme Support Infrastructure 802 566 802 565 1 669 440 669 440 -

Infrastructure Planning 20 461 20 461 - 36 787 36 787 -

Infrastructure Design 43 819 43 819 - 37 929 37 929 -

Construction 3 423 709 1 957 697 1 466 012 3 204 174 2 938 234 265 940

Maintenance 3 462 131 3 290 880 171 251 3 390 708 3 420 337 (29 629)

Total 7 752 686 6 115 422 1 637 264 7 339 038 7 102 727 236 311



PROGRAMME 3: TRANSPORT OPERATIONS

The purpose of this programme is to plan, regulate and facilitate the provision of integrated land transport services through co-ordination and co-operation with national planning authorities, CBO’s, NGO’s and the private sector in order to enhance the mobility of all communities particularly those currently without or with limited access.

This includes all costs involved in Public transport management and service delivery including the Planning, co-ordination of the operator in the transport industry.

This programme provides for the management of public transport contracts including the management of the subsidies for the public transport operators, this includes the payment of subsidies for providing services to the community based on an agreement between the government and the operator. This programme also provides for the subsidized dedicated learner transport services. Department of Education identifies the schools where the service is then provided. This also includes the monitoring of operators and subsidies in terms of the national and provincial legislation to ensure safety of commuters and learners.

The programme consists of three sub-programmes, in line with the sector specific budget format, namely: Programme Support Operations, Public Transport Services and Transport Safety and Compliance.

RECENT OUTPUTSThe Department has continued to drive transformation in this sector with 220 busses now owned by Africans and the value for these subsidized contracts is sitting at more than R272 million. The Department also continues to run the Learner Transport Services which has ensured increased access to schooling particularly for children in rural areas.

Our efforts to reduce road carnage yielded positive results in 2019/2020 this year when we reduced road crashes and fatalities during Easter holidays. This was attributable to the integrated safety plan we developed with all law enforcement agencies in the province. We will continue to advance road safety education and awareness. Our plan is to have programmes that will impact on changing the mindset of road users.


Programme/

Sub Programme

2018/19 2018/19

Final Appropriation

Actual Expenditure

(Over)/

Under Ex-penditure

Final Appropriation

Actual Expenditure

(Over)/

Under Ex-penditure

R’000 R’000 R’000 R’000 R’000 R’000

Transport Operations

Programme Support Operations 18 952 18 921 31 41 872 41 872 -

Public Transport Services 1 730 607 1 730 605 2 1 784 411 1 784 411 -

Transport Safety and Compliance 62 731 62 595 136 65 020 65 020 -

Total 1 812 290 1 812 121 169 1 891 303 1 891 303 -


PROGRAMME 4: TRANSPORT REGULATION

The purpose of this programme is to ensure the provision of a safe transport environment through the regulation of traffic on public infrastructure, law enforcement, implementation of road safety education and awareness programmes and the registration and licensing of vehicles and drivers. This includes the following all costs related to overall management of road traffic and safety in the Province.

The programme consists of four sub-programmes in line with the sector specific budget format, namely: Programme Support Regulation; Transport Administration and Licensing; Operator License and Permits; and Law Enforcement.

RECENT OUTPUTSWe continued expanding our services to all corners of KwaZulu-Natal as we have increased our licensing authority to 85 outlets in the province. Remarkable progress has been made in regard to the application and issuing of operating licences following the decision to uplift the moratorium on operating licences.

Since the upliftment of the moratorium more than 2 599 operating licences have been issued. In total, we have more than 18 000 operating licenses that have been issued in the province. Our taxi industry also continues to have relative stability. The Department has opened four new offices to facilitate the applications and issuance of operating licenses. These are located in Ladysmith, Empangeni, Port Shepstone and Mbazwana.

This is in addition to the already existing Head Office in Pietermaritzburg. This will improve stability and regulations in the taxi industry, thus working towards building peace and end conflict.


Programme/

Sub Programme

2019/20 2018/19

Final Appropriation

Actual Expenditure

(Over)/

Under Expenditure

Final Appropriation

Actual Expenditure

(Over)/

Under Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Transport Regulations

Programme Support Regulation 8 000 8 000 - 9 104 9 104 -

Transport Admin and Licensing 137 290 137 290 - 154 698 154 698 -

Operator Licence Permit 61 501 61 500 1 59 571 59 571 -

Law Enforcement 719 610 719 608 2 667 412 667 412 -

Total 926 401 926 398 3 890 785 890 785 -




PROGRAMME 5: COMMUNITY BASED PROGRAMME

Purpose: The purpose of this programme is to direct and manage the implementation of programmes and strategies that lead to the development and empowerment of communities. These include the following:

• The strategic planning and monitoring of programmes to further BBBEE.• Programmes to bring about the development and empowerment of impoverished communities.• The co-ordination of EPWP in the province.

The programme consists of four sub-programmes in line with the sector specific budget format, namely: Programme Support Community Based, Community Development, Innovation and Empowerment and EPWP Co-ordination and Monitoring.

The Strategic objectives for this programme are:

• BBBEE and SMME development; and• Job creation and poverty alleviation.

RECENT OUTPUTSThe Department has continued to contribute to job creation and poverty alleviation through this programme with the launch of Vukayibambe Routine Road Maintenance Programme and the National Youth Service.

Under Vukayibambe Routine Road Maintenance 3 200 young people have been employed for manual clearance of road verges with 800 of them being selected for training on accredited modules as part of their exit plan. Under the National Youth Service over 850 young people will be trained on accredited modules with 50 learners to be trained on accredited bricklaying apprenticeship through the Zibambele programme.

The Department took a decision to review the Vukuzakhe programme and realign the programme to the National Contractor Development Framework so that it complies with applicable legislation but still delivers the envisaged programme.


Programme/

Sub Programme

2019/20 2018/19


Actual Expenditure

(Over)/

Under Expenditure


Actual Expenditure

(Over)/

Under Ex-penditure

R’000 R’000 R’000 R’000 R’000 R’000

Community Based Programme

Programme Support Community Based 12 309 12 307 2 11 077 11 077 -

Community Development 564 295 269 3 535 3 535 -

Innovation and Empowerment 16 518 16 518 - 29 228 29 228 -

EPWP Co-Ordination and Monitoring 6 665 474 6 191 8 766 8 766 -

Total 36 056 29 594 6 462 52 606 52 606 -


Transfer Payments to all organisations other than public entities

Name of transferee

Type of Organisation

Purpose for which the funds were

used

Did the dept. comply with

S38(1)(j) of the PFMA

Amount transferred

R’000

Amount Spent by the

Entity

Reasons for the funds

unspent by the entity

Province Department Motor Vehicle Licences Yes 5 904 5 904 -

Construction and Engineering SETA’s

Departmental Agency

Skills Development Levy Yes 5 251 5 251 -

Bus Corporations Private Enterprise Bus Subsidies Yes 1 382 096 1 382 096 -

Santaco Non-Profit Institution Operational Costs Yes 3 007 3 007 -

Households Individuals

Claims Against the State, Expropriation of Land, Leave Gratuities and Injury on Duty

Yes 16 534 16 534 -

• Motor vehicle licences relate to the payment of motor vehicle licences, which is dependent on the number of vehicles and mechanical plant that the department owns and intends to purchase.

• Construction Education and Training Authority (CETA) and the Transport Education and Training Authority (TETA) levies are in terms of the Skills Development Act.

• Payments to Bus Operators relates mainly to the PTOG, which is a conditional grant aimed at subsidising road-based public transport services and to provide supplementary funding toward public transport services.

• Non-profit institutions is in respect of operational costs for the South African National Taxi Council (SANTACO) KZN as per the MOA signed between the department and the organisation. SANTACO is the official recognised representative of the mini taxi industry in the province. The transfer is to assist the organisation with the maintenance of 16 SANTACO offices by uplifting its operating and line functioning business standards and creating a more efficient and effective business orientated environment.

• Households caters for staff exit packages, external bursaries, injury on duty and claims against the state payments

Conditional Grants and Earmarked Funds Paid

Conditional Grants

The Department receives a Provincial allocation in the form of an equitable share and National conditional grant allocations for the maintenance and construction of road infrastructure, subsidising of bus transport in the Province and creating job opportunities through EPWP projects. Included under conditional grants is the Provincial Roads Maintenance Grant, Public Transport Operations Grant and the EPWP Incentive Grant.




A) PROVINCIAL ROADS MAINTENANCE GRANT

The Provincial Roads Maintenance Grant is for the maintenance and construction of road infrastructure in KZN.

The purpose of the grant is to supplement provincial roads investments and support preventative, routine and emergency maintenance on provincial road networks.

Department whom the grant has been transferred. KZN TransportPurpose of Grant Provincial Roads Maintenance GrantExpected outputs on grant Refer to Performance InformationActual outputs achieved Refer to Performance InformationAmount per amended DORA R1 882 781 000Amount transferred R1 882 781 000Reasons if amount as per DORA not transferred N/AAmount spent by department R1 882 781 000Reasons for funds unspent N/AMonitoring mechanism by the transferring department Monthly Reporting

B) PUBLIC TRANSPORT OPERATIONS GRANT

The purpose of this sub programme is to manage and monitor the provision of subsidised public transport services. The functions include ensuring that funds allocated to subsidise public transport service yield maximum outcome in reducing the burden of affordability, improving the standard and reliability of public transport, ensuring achievement of performance standards, ensuring economic transformation of the subsidised public transport sector and providing education and capacity building.

The Department provides subsidised public transport services which are funded through the Public Transport Operations Grant. The purpose of the Public Transport Operations grant is to provide supplementary funding for the provision of public transport services by contracts which are kilometer based that are affordable and supportive of the intermodal efficiencies to users of public transport. The aim is to ensure that user, especially the poor enjoy affordable public transportation. In many respects’ performance in the provision of the service has been above average.

Department whom the grant has been transferred. KZN TransportPurpose of Grant Provincial Roads Maintenance GrantExpected outputs on grant Refer to Performance InformationActual outputs achieved Refer to Performance InformationAmount per amended DORA R1 168 099 000Amount transferred R1 168 099 000Reasons if amount as per DORA not transferred N/AAmount spent by department R1 168 099 000Reasons for funds unspent N/AMonitoring mechanism by the transferring department Monthly Reporting


C) EXPANDED PUBLIC WORKS INTEGRATED GRANT FOR PROVINCES

The purpose of the EPWP Integrated Grant is to incentivize Provincial Departments to expand their work creation efforts through the use of labour-intensive delivery methods to improve the quality of life of the poor people and increase social stability through employing previously unemployed people to perform the infrastructure construction and maintenance activities. The employment of previously unemployed people contributes to the reduction of the levels of poverty and increases the levels of employment, skills development through work experience and sustainable work opportunities.

Department whom the grant has been transferred. KZN TransportPurpose of Grant EPWP Integrated Grant for ProvincesExpected outputs on grant Refer to Performance InformationActual outputs achieved Refer to Performance InformationAmount per amended DORA R74 146 000Amount transferred R74 146 000Reasons if amount as per DORA not transferred -Amount spent by department R74 146 000Reasons for funds unspent N/AMonitoring mechanism by the transferring department Monthly Reporting

EARMARKED FUNDS

a) Learner Transport

To purpose of Learner Transport is to:

• Provide equitable access to quality education for the people of KwaZulu-Natal• Improve access to quality education by providing safe, decent, effective, and integrated sustainable learner

transport.

Department whom the grant has been transferred. KZN Transport

Purpose of Allocation Learner Transport

Expected outputs on allocation Refer to Performance Information

Actual outputs achieved Refer to Performance Information

Amount per amended DORA R348 241 000

Amount transferred R348 241 000

Reasons if amount as per DORA not transferred N/A

Amount spent by department R348 417 000

Reasons for funds unspent N/A

Monitoring mechanism by the transferring department Quarterly Reporting

Donor Funding

No donor funding was received by the Department



CAPITAL INVESTMENT

Table: Capital Investment

Infrastructure Projects

2019/20 2018/19

Final

Appropriation

Actual

Expenditure

(Over) / Under Expenditure

Final

Appropriation

Actual

Expenditure

(Over) / Under Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Existing Infrastructure Assets 4 891 004 3 316 372 1 576 523 5 274 470 5 038 159 236 311

Maintenance and Repairs 1 906 466 1 735 215 171 251 2 388 113 2 417 742 (29 629)

Upgrades and Additions 1 142 631 810 697 331 934 1 695 588 1 695 588 -

Rehabilitation, Renovations and Refurbishments

1 843 798 770 460 1 073 338 1 190 769 924 829 265 940

New and Replacement Assets 445 055 384 315 60 740 314 754 314 754 -

Non-Infrastructure 2 147 169 2 147 169 - 1 421 333 1 421 333 -

Capital 3 431 484 1 965 472 1 466 012 3 201 111 2 935 171 265 940

Current 1 906 466 1 735 215 171 251 2 388 113 2 417 742 (29 629)

Total 7 485 119 5 847 856 1 637 263 7 010 557 6 774 246 236 311



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t 20

18/20

19

Plan

ned

Targ

et

2019

/2020

Actu

al Ac

hiev

emen

t 20

19/20

20

Devia

tion

from

plan

ned

targ

et to

Act

ual

Achi

evem

ent

2019

/2020

Com

men

t on

devia

tions

Kilom

etres

of de

clare

d roa

d 32

165

32 82

533

238

33 10

033

663

563

An im

prov

emen

t in D

ata M

anag

emen

t wa

s the

reas

on fo

r the

over

ac

hieve

ment.

This

was

also

assis

ted

by im

prov

ed de

clara

tion p

roce

ss

enfor

ceme

nt.

Stra

tegi

c G

oal:

Pro

mot

e an

inte

grat

ed tr

ansp

orta

tion

syst

em th

roug

h de

velo

ping

3 IP

TN O

pera

tiona

l Pla

ns

Perfo

rman

ce In

dica

tors

Actu

al Ac

hiev

emen

t 20

15/20

16 to

da

te

Actu

al Ac

hiev

emen

t 20

17/20

18

Actu

al Ac

hiev

emen

t 20

18/20

19

Plan

ned

Targ

et

2019

/2020

Actu

al Ac

hiev

emen

t 20

19/20

20

Devia

tion

from

plan

ned

targ

et to

Act

ual

Achi

evem

ent

2019

/2020

Com

men

t on

devia

tions

Numb

er of

IPTN

Ope

ratio

nal P

lans

deve

loped

00

01

10



Stra

tegi

c O

bjec

tive:

An

affo

rdab

le, b

alan

ced

and

equi

tabl

e tra

nspo

rt ne

twor

k by

con

stru

ctin

g 1,

090k

ms

of n

ew g

rave

l acc

ess

road

s, 6

5 pe

dest

rian

brid

ges

and

35 m

ajor

veh

icle

brid

ges.

Perfo

rman

ce In

dica

tors

Actu

al Ac

hiev

emen

t 20

15/20

16

Actu

al Ac

hiev

emen

t 20

17/20

18

Actu

al Ac

hiev

emen

t 20

18/20

19

Plan

ned

Targ

et

2019

/2020

Actu

al Ac

hiev

emen

t 20

19/20

20

Devia

tion

from

plan

ned

targ

et to

Act

ual

Achi

evem

ent

2019

/2020

Com

men

t on

devia

tions

Kilom

etres

of ne

w gr

avel

acce

ss ro

ads

cons

tructe

d12

4

164

104,9

7 20

0

12

,02

-188

Targ

et ha

s not

been

met

due t

o the

ca

ncell

ation

of th

e Vuk

uzak

he w

hich

has i

mpac

ted th

e Dep

artm

ent a

cross

all

regio

ns, a

n info

rmed

decis

ion w

as

taken

to co

nver

t all c

ontra

cts to

ZNT

41

97 an

nual

contr

act. H

owev

er, th

e co

ntrac

t doc

umen

ts we

re co

nstan

tly

being

chan

ged t

o add

and o

mit it

ems

withi

n the

user

man

ual a

nd B

oQ,

the ra

ndom

izatio

n of th

e con

tracto

r su

pplie

r list

had n

ot be

en fin

alize

d wh

ich de

layed

even

furth

er

New

pede

strian

bridg

es co

nstru

cted

12

6 0

3 0

-3

Targ

et wa

s not

met d

ue to

delay

s with

the

finali

satio

n and

appr

oval

of the

im

pleme

ntatio

n man

uals,

desig

ns an

d sp

ecific

ation

s for

plan

ned p

rojec

ts,

and p

oor p

erfor

manc

e by c

ontra

ctors

who a

band

on si

tes du

e to fi

nanc

ial

diffic

ulties

.

New

major

vehic

le br

idges

cons

tructe

d9

18

9

16

0 -1

6

Targ

et wa

s not

met d

ue to

delay

s with

the

finali

satio

n and

appr

oval

of the

im

pleme

ntatio

n man

uals,

desig

ns an

d sp

ecific

ation

s for

plan

ned p

rojec

ts,

and p

oor p

erfor

manc

e by c

ontra

ctors

who a

band

on si

tes du

e to fi

nanc

ial

diffic

ulties

. S

trate

gic

Obj

ectiv

e: A

fford

able

tran

spor

t inf

rast

ruct

ure

mai

nten

ance

so

that

30%

of t

he b

lack

top

road

net

wor

k is

in a

‘poo

r to

very

poo

r’ co

nditi

on b

y 20

19/2

020

Perfo

rman

ce In

dica

tors

Actu

al Ac

hiev

emen

t 20

15/20

16 to

da

te

Actu

al Ac

hiev

emen

t 20

17/20

18

Actu

al Ac

hiev

emen

t 20

18/20

19

Plan

ned

Targ

et

2019

/2020

Actu

al Ac

hiev

emen

t 20

19/20

20

Devia

tion

from

plan

ned

targ

et to

Act

ual

Achi

evem

ent

2019

/2020

Com

men

t on

devia

tions



% of

blac

ktop r

oad n

etwor

k in a

“poo

r to

very

poor

” con

dition

35%

36%

57%

57%

53%

4%

Incre

ase i

n the

Reh

abilit

ation

inv

estm

ent h

as ca

used

an

impr

ovem

ent in

the n

etwor

k con

dition

, als

o coll

ectin

g the

pave

d netw

ork

cond

ition t

his fin

ancia

l yea

r has

as

sisted

in tr

ackin

g the

impr

ovem

ent in

the

cond

ition d

ata.

PRO

GR

AM

ME

3: T

RA

NSP

OR

T O

PER

ATIO

NS

Stra

tegi

c O

bjec

tive:

90%

(62,

100/

69,0

00) o

f all

publ

ic tr

ansp

ort o

pera

tors

are

fully

com

plia

nt w

ith th

e pu

blic

tran

spor

t pro

visi

ons

Perfo

rman

ce In

dica

tors

Actu

al Ac

hiev

emen

t 20

15/20

16 to

da

te

Actu

al Ac

hiev

emen

t 20

17/20

18

Actu

al Ac

hiev

emen

t 20

18/20

19

Plan

ned

Targ

et

2019

/2020

Actu

al Ac

hiev

emen

t 20

19/20

20

Devia

tion

from

plan

ned

targ

et to

Act

ual

Achi

evem

ent

2019

/2020

Com

men

t on

devia

tions

No. o

f com

plian

t pub

lic tr

ansp

ort

oper

ators

25 29

7

27

686

15 92

0

61

000

22 21

1 -3

8 789

U

nder

achie

veme

nt du

e to n

on

finali

satio

n of d

ata pu

rifica

tion p

roce

ss.

Stra

tegi

c O

bjec

tive:

The

pro

visi

on o

f a d

edic

ated

sub

sidi

sed

lear

ner t

rans

port

serv

ice

to 3

8,60

0 le

arne

rs id

entifi

ed b

y th

e D

epar

tmen

t of E

duca

tion

Perfo

rman

ce In

dica

tors

Actu

al Ac

hiev

emen

t 20

15/20

16 to

da

te

Actu

al Ac

hiev

emen

t 20

17/20

18

Actu

al Ac

hiev

emen

t 20

18/20

19

Plan

ned

Targ

et

2019

/2020

Actu

al Ac

hiev

emen

t 20

19/20

20

Devia

tion

from

plan

ned

targ

et to

Act

ual

Achi

evem

ent

2019

/2020

Com

men

t on

devia

tions

No. o

f lear

ners

trans

porte

d43

990

47 74

7

58

816

47 74

0

58

908

11

168

Cha

nge i

n num

bers

is du

e to

verifi

catio

n don

e by D

OE, h

ence

, the

incre

ase i

n lea

rner

numb

ers

Numb

er of

scho

ols re

ceivi

ng tr

ansp

ort

servi

ces

33

2

33

2

- Ta

rget

achie

ved

Stra

tegi

c O

bjec

tive:

The

mig

ratio

n of

72

mill

ion

tonn

es o

f fre

ight

from

road

to ra

il by

201

9/20

Perfo

rman

ce In

dica

tors

Actu

al Ac

hiev

emen

t 20

15/20

16 to

da

te

Actu

al Ac

hiev

emen

t 20

17/20

18

Actu

al Ac

hiev

emen

t 20

18/20

19

Plan

ned

Targ

et

2019

/2020

Actu

al Ac

hiev

emen

t 20

19/20

20

Devia

tion

from

plan

ned

targ

et to

Act

ual

Achi

evem

ent

2019

/2020

Com

men

t on

devia

tions



Millio

n ton

nes o

f freig

ht mi

grate

d0

00

100 0

00

0 -1

00 00

0

We h

ave b

een u

nsuc

cess

ful in

re

achin

g the

targ

et for

seve

ral re

ason

s: 1.

We h

ave n

ot ma

nage

d to c

omple

te the

MOU

betw

een T

rans

net F

reigh

t Ra

il (TF

R) an

d KZN

DOT,

as T

FR

have

not s

igned

it ye

t. 2. W

e hav

e no

direc

t con

trol, n

or in

fluen

ce on

TFR

. 3.

We w

ere u

nsuc

cess

ful in

obtai

ning

a mee

ting d

ate w

ith T

FR du

e to t

heir

non r

espo

nse.

4. La

stly,

we ha

ve be

en

unab

le to

obtai

n acc

urate

data

from

TFR

to se

e if th

ere i

s an i

ncre

ase o

r de

creas

e in F

reigh

t tonn

age b

eing

move

d on r

ail.

PRO

GR

AM

ME

4: T

RA

NSP

OR

T R

EGU

LATI

ON

S

trate

gic

Goa

l: C

reat

e an

d pr

omot

e a

safe

road

env

ironm

ent b

y de

crea

sing

road

fata

litie

s by

30%

(545

/1,8

19) i

n 20

20

Perfo

rman

ce In

dica

tors

Actu

al Ac

hiev

emen

t 20

15/20

16

Actu

al Ac

hiev

emen

t 20

17/20

18

Actu

al Ac

hiev

emen

t 20

18/20

19

Plan

ned

Targ

et

2019

/2020

Actu

al Ac

hiev

emen

t 20

19/20

20

Devia

tion

from

plan

ned

targ

et to

Act

ual

Achi

evem

ent

2019

/2020

Com

men

t on

devia

tions

Numb

er of

fatal

ities (

per 1

00,0

00 ve

hicle

kms)

1 848

2 375

2 374

2 025

2 281

256

This

indic

ator is

not o

nly de

pend

ent o

n law

enfor

ceme

nt bu

t cuts

acro

ss ot

her

comp

onen

ts, i.e

. eng

ineer

ing an

d roa

d sa

fety

Stra

tegi

c O

bjec

tive:

Effe

ctiv

e re

gula

tion

and

law

enf

orce

men

t thr

ough

6,5

00 g

oal d

irect

ed m

ulti-

disc

iplin

ary

oper

atio

ns.

Perfo

rman

ce In

dica

tors

Actu

al Ac

hiev

emen

t 20

15/20

16 to

da

te

Actu

al Ac

hiev

emen

t 20

17/20

18

Actu

al Ac

hiev

emen

t 20

18/20

19

Plan

ned

Targ

et

2019

/2020

Actu

al Ac

hiev

emen

t 20

19/20

20

Devia

tion

from

plan

ned

targ

et to

Act

ual

Achi

evem

ent

2019

/2020

Com

men

t on

devia

tions

Numb

er of

goal

direc

ted m

ulti-

discip

linar

y ope

ratio

ns4 1

341 4

871 5

511 3

651 4

8111

6

1. Du

ring t

he fin

ancia

l yea

r 201

9/20 t

he

Dire

ctora

te ov

erac

hieve

d by 1

16 du

e to

more

inten

sified

oper

ation

s dur

ing th

e Ea

ster, F

estiv

e and

Octo

ber T

rans

port

Month

perio

ds an

d also

due t

o Safe

r Fr

idays

and C

losing

Ran

ks ca

mpaig

ns

throu

gh th

e ITL

EC st

ructu

res.

2.

In the

latte

r par

t of M

arch

2020

, due

to

the co

untry

wide

lock

down

the

reso

urce

s wer

e red

irecte

d to s

uppo

rt SA

PS du

ring t

he ro

adblo

cks



PRO

GR

AM

ME

5: C

OM

MU

NIT

Y-B

ASE

D P

RO

GR

AM

ME

Stra

tegi

c G

oal:

Pro

mot

e su

stai

nabl

e ec

onom

ic tr

ansf

orm

atio

n th

roug

h de

velo

ping

2 e

mpo

wer

men

t pro

gram

mes

Perfo

rman

ce In

dica

tors

Actu

al Ac

hiev

emen

t 20

15/20

16 to

da

te

Actu

al Ac

hiev

emen

t 20

17/20

18

Actu

al Ac

hiev

emen

t 20

18/20

19

Plan

ned

Targ

et

2019

/2020

Actu

al Ac

hiev

emen

t 20

19/20

20

Devia

tion

from

plan

ned

targ

et to

Act

ual

Achi

evem

ent

2019

/2020

Com

men

t on

devia

tions

Numb

er of

empo

werm

ent p

rogr

amme

s de

velop

ed

00

11

0-1

The D

epar

tmen

t had

Dev

elope

d a D

raft c

once

pt for

a pr

ogra

mme

to co

nver

t clea

ning s

taff w

ho ar

e pa

rt of

the cl

eanin

g con

tract

into

coop

erati

ves h

owev

er; th

is ap

proa

ch

was n

ot su

cces

sful s

ince t

he in

terna

l co

nsult

ation

s rev

ealed

that

targe

ted

bene

ficiar

ies w

ere t

o be e

mpow

ered

thr

ough

the f

ull tim

e emp

loyme

nt op

portu

nities

as pa

rt of

the pr

opos

ed

Depa

rtmen

tal or

gano

gram

await

ing

appr

oval.

The

Dep

artm

ent o

pted t

o fol

low th

e sub

-contr

actin

g app

roac

h to

indire

ctly t

arge

t Clea

ning c

oope

rativ

es.

Stra

tegi

c O

bjec

tive:

Sup

port

and

prom

ote

econ

omic

tran

sfor

mat

ion

thro

ugh

the

awar

ding

of R

2,03

1 bi

llion

wor

th o

f con

tract

s to

em

ergi

ng

entre

pren

eurs

. (Vu

kuza

khe

cont

ract

ors

on G

rade

s 1

to 3

and

pub

lic tr

ansp

ort t

rans

form

atio

n co

ntra

cts)

Perfo

rman

ce In

dica

tors

Actu

al Ac

hiev

emen

t 20

15/20

16 to

da

te

Actu

al Ac

hiev

emen

t 20

17/20

18

Actu

al Ac

hiev

emen

t 20

18/20

19

Plan

ned

Targ

et

2019

/2020

Actu

al Ac

hiev

emen

t 20

19/20

20

Devia

tion

from

plan

ned

targ

et to

Act

ual

Achi

evem

ent

2019

/2020

Com

men

t on

devia

tions

Value

of co

ntrac

ts aw

arde

d to e

merg

ing

entre

pren

eurs

1 014

,652

71 1

2271

672

8,312

,3

The s

light

over

achie

veme

nt in

the va

lue of

contr

acts

awar

ded t

o Vu

kuza

khe a

s well

as th

e inc

reas

e in

esca

lation

for p

ublic

tran

spor

t res

ulted

in

the ov

erall

over

achie

veme

nt

Value

of co

ntrac

ts aw

arde

d to

Vuku

zakh

e con

tracto

rs on

Gra

des 1

to 3

(in R

milli

ons)

876

353

918

500

506,3

6,3

Targ

et me

t, eve

n tho

ugh t

here

was

a c

hang

e fro

m us

ing V

ukuz

akhe

Co

ntrac

tors t

o sou

rce fr

om al

l gra

de

1-3,

this c

ause

d a de

lay bu

t this

was

assis

ted by

CPG

imple

menta

tion

wher

e 35%

of th

e wor

k for

proje

cts

over

R10

m wa

s sub

contr

acted

to th

e low

er gr

ades



Value

of pu

blic t

rans

port

trans

forma

tion

contr

acts

(in R

milli

ons)

138,6

174

204

216

222

6Th

e inc

reas

e in e

scala

tion r

esult

ed in

the

sligh

t incre

ase i

n the

subs

idy du

e

Stra

tegi

c O

bjec

tive:

Add

ress

ing

pove

rty a

llevi

atio

n an

d em

pow

erm

ent t

hrou

gh in

crea

sing

the

oppo

rtuni

ties

for j

ob c

reat

ion

by 4

0% (2

4,00

0 jo

bs)

Perfo

rman

ce In

dica

tors

Actu

al Ac

hiev

emen

t 20

15/20

16 to

da

te

Actu

al Ac

hiev

emen

t 20

17/20

18

Actu

al Ac

hiev

emen

t 20

18/20

19

Plan

ned

Targ

et

2019

/2020

Actu

al Ac

hiev

emen

t 20

19/20

20

Devia

tion

from

plan

ned

targ

et to

Act

ual

Achi

evem

ent

2019

/2020

Com

men

t on

devia

tions

No. o

f jobs

crea

ted58

459

49 50

1

44

008

58 26

0

47

305

-10 9

55

The

reas

on fo

r not

meeti

ng th

e ann

ual

Wor

k Opp

ortun

ity ta

rget

is du

e to

the de

lay in

repo

rting o

f Tra

ining

for

NYS

and P

WDs

whic

h too

k plac

e in

Febr

uary

and M

arch

2020



KW

AZU

LU-N

ATA

L

AN

NU

AL

PER

FOR

MA

NC

E R

EPO

RTS

: 201

9/20

Sect

or: R

oads

and

Tra

nspo

rtPr

ogra

mm

e /

Subp

rogr

amm

e /

Perfo

rman

ce M

easu

res

Ac

tual

Achi

evem

ent

2016

/2017

Actu

al Ac

hiev

emen

t 20

17/20

18

Actu

al Ac

hiev

emen

t 20

18/20

19

Plan

ned

Targ

et

2019

/2020

Actu

al Ac

hiev

emen

t 20

19/20

20

Devia

tion

from

plan

ned

targ

et to

Act

ual

Achi

evem

ent

2019

/2020

Com

men

t on

devia

tions

AN

NU

AL

OU

TPU

TSPr

ogra

mm

e 1:

Adm

inis

trat

ion

DP

SA K

PA 1

Scor

e

55

550

Targ

et ac

hieve

d

DP

SA K

PA 2

Scor

e

25

250

Targ

et ac

hieve

d

DP

SA K

PA 3

Scor

e

60

58-2

No

n-im

pleme

ntatio

n of r

emed

ial ac

tions

/re

comm

enda

tions

as pe

r the

surve

y due

to

time c

onstr

aints

DP

SA K

PA 4

Scor

e

83

82-1

DP

SA K

PA 5

Scor

e

54

595

The h

uman

reso

urce

comp

onen

t imple

mente

d the

impr

ovem

ent p

lan as

sugg

ested

by th

e De

partm

ental

HR

Asse

ssme

nt Co

mmitte

e, i.e

. by i

ssuin

g inte

rnal

memo

s sen

sitisi

ng th

e ma

nage

ment

on th

e imp

ortan

ce of

cons

iderin

g the

polic

y req

uirem

ents

when

attra

cting

and

retai

ning a

n emp

loyee

; and

analy

sing e

xit

inter

views

ques

tionn

aires

and a

ct on

them

.

DP

SA K

PA 6

Scor

e

96

69-2

7

The t

arge

t was

mea

nt to

be 69

% an

d not

96%

, loo

king a

t the s

core

achie

ved f

or th

e pas

t thre

e ye

ars o

n this

spec

ific K

RA. A

s a re

sult,

this

typing

erro

r will

be co

rrecte

d in t

he ne

ar fu

ture.

The D

epar

tmen

t actu

ally a

chiev

ed 10

0% on

thi

s KRA

.

DP

SA K

PA 7

Scor

e

94

940

Targ

et ac

hieve

d

DP

SA K

PA 8

Scor

e

75

73-2

Imple

mente

d exp

edite

d pro

cess

es fo

r gr

ievan

ce an

d misc

ondu

ct re

solut

ion,

enha

nced

the c

ollec

ted ba

rgain

ing an

d Tas

k Te

am pr

oces

ses,

impr

oved

man

agem

ent

supp

ort a

nd st

aff ca

pacit

ation

and s

tream

lined

pr

oces

ses t

o com

ply w

ith tim

efram

es.



Prog

ram

me

2: T

rans

port

Infr

astr

uctu

re

Infr

astr

uctu

re P

lann

ing

Numb

er of

kil

ometr

es

of su

rface

d ro

ads v

isuall

y as

sess

ed

as pe

r the

ap

plica

ble

TMH

manu

al

3 751

3 945

3 950

3 950

7 994

4 044

The t

arge

t was

surp

asse

d in o

rder

to ha

ve

a com

plete

pave

d data

set fr

om on

e yea

r as

a bas

e line

for a

netw

ork m

odell

ing an

alysis

in

effor

ts to

impr

ove t

he as

set m

anag

emen

t lev

el of

the de

partm

ents

RAMS

. This

was

also

pa

rt of

a valu

e-ad

ded s

ervic

e to h

ave t

he fu

ll ne

twor

k uplo

aded

onto

Insigh

t, an o

nline

data

visua

lisati

on pl

atfor

m.

Numb

er of

kil

ometr

es

of gr

avel

road

s visu

ally

asse

ssed

as

per t

he

appli

cable

TM

H ma

nual

7 510

7 802

7 900

7 900

5 721

,30-2

178,7

0 T

he ta

rget

was n

ot me

t due

to th

e prio

ritisa

tion

of the

pave

d netw

ork a

nalys

is to

grad

ually

im

prov

e the

depa

rtmen

ts RA

MS. T

he un

pave

d ne

twor

k is w

ithin

DoRA

requ

ireme

nts



QU

AR

TER

LY O

UTP

UTS

PRO

GR

AM

ME

2: T

RA

NSP

OR

T IN

FRA

STR

UC

TUR

E C

onst

ruct

ion

Kilom

etres

of

grav

el ro

ads

upgr

aded

to

surfa

ced r

oads

102

115

59,88

6019

,45-4

0,55

Targ

et wa

s not

met d

ue to

an al

armi

ng

incre

ase o

f poo

r per

forma

nce b

y the

co

ntrac

tors f

or pr

ojects

that

were

activ

e on

site,

whic

h mea

nt tha

t som

e of th

ese

contr

actor

s had

to be

term

inated

and t

hen

the re

maini

ng w

ork r

e adv

ertis

ed. T

he op

en

tende

r pro

cess

was

going

to ta

ke a

longe

r tim

e so

the D

epar

tmen

t dec

ided t

o use

an ex

isting

ap

prov

ed fr

amew

ork c

ontra

ct. H

owev

er,

delay

s wer

e enc

ounte

red a

s the

re w

as a

bottle

neck

with

in the

SCM

proc

ess.

Anoth

er

contr

ibutin

g fac

tor w

as al

so th

e fac

t that

were

no pa

nel fo

r Con

sulta

nts ap

point

ed fo

r Ca

pital

proje

cts w

hich r

esult

ed in

using

Are

a Ba

sed C

onsu

ltants

whic

h wer

e inte

nded

to

supp

ort th

e reg

ions w

ith re

giona

l pro

jects.

This

ca

used

furth

er de

lays i

n fina

lising

spec

ificati

on

docu

ments

as so

me co

nsult

ants

didn’t

have

ad

equa

te re

sour

ces.

Affec

ted pr

ojects

are s

uch

as th

e upg

rade

of M

ain R

oads

P28

1 (fro

m 46

.4 kil

ometr

es to

53.1

kilom

etres

) and

P17

(fro

m 39

kilom

etres

to 47

kilom

etres

) in M

singa

, P8

-3 (f

rom

18 ki

lometr

es to

23 ki

lometr

es) a

nd

P318

-1 (f

rom

13.8

kilom

etres

to 25

kilom

etres

) in

Dr N

kosa

zana

Dlam

ini Z

uma,

P127

-2 (f

rom

18 to

21.1

kilom

etres

) in Im

pend

le

Numb

er

of m²

of

surfa

ced r

oads

re

habil

itated

2 408

223

1 683

719

1 874

219,0

22 5

00 00

094

9 648

,15-1

550 3

51,85

Targ

et ha

s not

been

achie

ved d

ue to

the

follow

ing: 1

. Dela

ys in

obtai

ning a

ppro

val fo

r ZN

T419

8/17T

quota

tion d

ocum

ent. 2

. Dela

ys

in su

bmiss

ion of

desig

n and

docu

ments

for

quota

tions

by co

nsult

ants.

3. D

elays

in

awar

ding o

f con

tracts

that

were

adve

rtised

in

Octob

er 20

19.

Numb

er

of sq

uare

me

tres o

f no

n-mo

torise

d tra

nspo

rt fac

ility

cons

tructe

d

84 59

253

981

9 936

,4625

000,0

012

807,8

7-1

2 192

,13 T

he ca

ncell

ation

to us

e Vuk

uzak

he to

im

pleme

nt the

se pr

ojects

caus

ed de

lays a

s so

me of

thes

e pro

jects

were

near

ly at

awar

d sta

ge an

d wer

e halt

ed to

be re

-adv

ertis

ed



Mai

nten

ance

Numb

er of

sq

uare

metr

es

of su

rface

d ro

ads r

esea

led

2 944

842

764 2

2299

3 961

,4650

0 000

374 5

82,15

-125

417,8

5

Targ

et ha

s not

been

achie

ved d

ue to

the

follow

ing: 1

. Dela

ys in

obtai

ning a

ppro

val fo

r ZN

T419

8/17T

quota

tion d

ocum

ent. 2

. Dela

ys

in su

bmiss

ion of

desig

n and

docu

ments

for

quota

tions

by co

nsult

ants.

3. D

elays

in

awar

ding o

f con

tracts

that

were

adve

rtised

in

Octob

er 20

19.

Numb

er of

kil

ometr

es of

gr

avel

road

re

-gra

velle

d2 3

301 4

1384

9,89

2 200

233,6

6-1

966,3

4

Targ

et ha

s not

been

met

due t

o the

follo

wing

: 1.V

ukuz

akhe

was

plan

ned t

o be u

sed t

o im

pleme

nt the

se pr

ojects

and a

fter t

he co

ntrac

t be

ing un

der r

eview

, ther

e wer

e dela

ys as

SC

M pr

oces

ses h

ad to

be re

starte

d. 2.

The

ch

allen

ge of

poor

perfo

rman

ce of

contr

actor

s sti

ll cau

se m

ajor d

elays

in ex

pend

iture

and

outpu

ts as

contr

actor

s fac

e cha

lleng

es w

ith

cash

-flow

to fin

ish of

f wor

k on s

ite

Numb

er of

sq

uare

mete

rs of

black

top

patch

ing

(inclu

ding

potho

le re

pairs

)

353 7

8081

9 659

1 925

150,9

575

0 000

785 9

72,16

35 97

2,16

Annu

al tar

get h

as be

en ex

ceed

ed, s

o with

the

delay

s in t

he re

hab a

nd re

seal

prog

ramm

e, thi

s has

had a

n effe

ct on

the c

ondit

ion of

the

netw

ork,

which

has c

ause

d ser

ious

deter

iorati

on of

the r

oad c

ondit

ion, w

hich

caus

ed m

ajor p

othole

s, an

d the

se ne

eded

to

be pa

tched

for s

afety

reas

ons.

Numb

er of

kil

ometr

es of

gr

avel

road

s bla

ded

76 51

877

938

65 41

1,60

90 00

036

153,8

4-5

3 846

,16

Targ

et ha

s not

been

met

due t

o the

follo

wing

: 1.V

ukuz

akhe

was

plan

ned t

o be u

sed t

o im

pleme

nt the

se pr

ojects

and a

fter t

he co

ntrac

t be

ing un

der r

eview

, ther

e wer

e dela

ys as

SC

M pr

oces

ses h

ad to

be re

starte

d. 2.

The

ch

allen

ge of

poor

perfo

rman

ce of

contr

actor

s sti

ll cau

se m

ajor d

elays

in ex

pend

iture

and

outpu

ts as

contr

actor

s fac

e cha

lleng

es w

ith

cash

-flow

to fin

ish of

f wor

k on s

ite.



PRO

GR

AM

ME

3: T

RA

NSP

OR

T O

PER

ATIO

NS

Publ

ic T

rans

port

Ser

vice

s

Nu

mber

of

kilom

etres

su

bsidi

sed

41 59

9 563

41 49

8 121

41 36

0 571

41 62

0 660

41 09

3 069

-527

591,0

0

Norm

al op

erati

onal

pena

lties a

nd st

andin

g kil

omete

rs du

e to i

nclem

ent w

eathe

r fro

m tim

e to

time d

uring

the c

ourse

of th

e yea

r has

had

a neg

ative

impa

ct on

the t

otal. H

owev

er, th

e co

mplet

e pub

lic tr

ansp

ort s

hut d

own i

n the

last

week

in M

arch

2020

, due

to th

e Cov

id-19

, had

a h

uge i

mpac

t on t

he to

tal ki

lomete

rs op

erate

d.

Nu

mber

of tr

ips

subs

idise

d1 1

89 45

21 1

76 85

01 1

65 39

61 1

91 19

61 1

66 80

9-2

4 387

,00

Norm

al op

erati

onal

pena

lties a

nd st

andin

g trip

s due

to in

cleme

nt we

ather

from

time t

o tim

e dur

ing th

e cou

rse of

the y

ear h

as ha

d a n

egati

ve im

pact

on th

e tota

l, How

ever,

the

comp

lete p

ublic

tran

spor

t shu

t dow

n in t

he la

st we

ek in

Mar

ch 20

20, d

ue to

the C

ovid-

19, h

ad

a hug

e imp

act o

n the

total

trips

oper

ated.

Numb

er of

Pr

ovinc

ial

Regu

lating

En

tity (P

RE)

hear

ings

cond

ucted

501

441

475

460

1 004

544,0

0Ov

er ac

hieve

ment

due t

o fas

t trac

king o

f inc

oming

appli

catio

ns fr

om pu

blic t

rans

port

oper

ators

for al

l mod

es of

publi

c tra

nspo

rt.

Nu

mber

of

route

s su

bsidi

sed

1 709

2 074

2 074

2 074

2 074

0,00

Targ

et ac

hieve

d

Su

bsidy

per

pass

enge

r17

,4718

,2219

,7922

,9021

,00-1

,90

The e

scala

tion f

actor

peak

ed at

1.39

2365

in

Septe

mber

2019

. The

n the

esca

lation

facto

r gr

adua

lly de

creas

ed to

1.34

0799

in M

arch

20

20. T

his re

sulte

d in l

ess s

ubsid

y and

henc

e les

s sub

sidy p

er pa

ssen

ger.



Tra

nspo

rt S

afet

y an

d C

ompl

ianc

e

Numb

er of

ro

ad sa

fety

awar

enes

s pr

ogra

mmes

co

nduc

ted

99

66

60,0

0

Numb

er

of sc

hools

inv

olved

in

road

safet

y ed

ucati

on

prog

ramm

es

1 110

1 176

1 252

1 246

1 259

13,00

Par

tnere

d with

the D

epar

tmen

t of E

duca

tion

and H

ealth

to pr

omote

road

safet

y as p

art o

f the

ir sch

ool a

nd he

alth s

afety

initia

tives

Numb

er of

cro

ssing

pa

trols

prov

ided

143

191

185

174

182

8,00

A va

rianc

e in t

he ac

tual o

utput

is re

cord

ed du

e to

addit

ional

sites

that

were

activ

ated f

ollow

ing

nume

rous

publi

c pro

tests

at sc

hools

whe

re

comm

unitie

s dem

onstr

ated t

heir c

once

rns

rega

rding

the s

afety

of lea

rner

s.

Numb

er of

de

centr

alise

d PR

E offi

ces

estab

lishe

d1

10

00

0,00

Numb

er of

pu

blic t

rans

port

route

s tha

t ha

ve be

en

evalu

ated

for ec

onom

ic via

bility

443

793

1 091

00

0,00



PRO

GR

AM

ME

4: T

RA

NSP

OR

T R

EGU

LATI

ON

Tr

ansp

ort A

dmin

istr

atio

n an

d Li

cens

ing

Numb

er

of lic

ense

co

mplia

nce

inspe

ction

s co

nduc

ted

1 393

1 110

1 230

1 335

1 342

7,00

The s

ituati

on on

the g

roun

d nec

essit

ated

for a

rand

om un

-exp

ected

insp

ectio

ns

mainl

y in D

LTC’

s whe

re in

equit

ies ha

d be

en sp

otted

inclu

ding a

cultu

re of

extra

or

dinar

y rela

tions

hips w

ith dr

iving

scho

ols

and i

nstru

ctors

and w

hich i

s the

stim

ulus o

f irr

egula

rities

. The

othe

r rea

son i

s the

numb

er

of fol

low up

insp

ectio

ns. A

bove

that

the

violat

ions o

f mini

mum

requ

ireme

nt in

terms

of

the le

gislat

ion to

cond

uct 2

insp

ectio

ns pe

r qu

arter

culm

inates

from

furth

er in

vesti

gatio

ns

and a

udits

in D

LTC’

s.

Tra

ffic

law

enf

orce

men

t

Nu

mber

of

spee

d op

erati

ons

cond

ucted

17 35

912

573

16 00

318

250

16 89

2-1

358,0

0

1. Du

ring t

he ye

ar 20

19/20

the D

irecto

rate

unde

r ach

ieved

by 13

58 du

e to h

eavy

rainf

alls

and l

imite

d man

powe

r bec

ause

of le

ave t

aken

, att

endin

g to c

rash

es an

d obs

tructi

ons a

s well

as

road

clos

ures

due t

o pub

lic pr

otest

actio

ns.

2.

The n

umbe

r of c

rash

es at

tende

d to

for th

e yea

r was

2868

with

1700

8 ma

nhou

rs los

t, 290

0 obs

tructi

ons w

ith

1727

3 man

hour

s los

t and

1293

abno

rmal

loads

esco

rted w

ith 92

63 m

anho

urs l

ost.

3. In

the la

ter pa

rt of

March

due t

o the

coun

try

wide

lock

down

the r

esou

rces w

ere r

e-dir

ected

to

supp

ort S

APS

durin

g the

road

block

s.

Nu

mber

of

vehic

les

weigh

ed18

0 758

160 2

3015

9 409

155 0

0014

7 163

-7 83

7,00

1. Fo

r the

year

2019

/20 th

e Dire

ctora

te un

der a

chiev

ed by

7837

due d

own

time a

t the w

eighb

ridge

s and

weig

hing

oper

ation

s dec

reas

ed E

aster

, Fes

tive

and O

ctobe

r Tra

nspo

rt Mo

nth pe

riod.

2. Du

ring t

his fin

ancia

l yea

r the

re w

as

a cha

nge i

n ope

ratin

g sys

tem fr

om

Trafm

an to

Winu

wei w

hich r

esult

ed in

3 w

eeks

of in

stalla

tion a

nd tr

aining

.

3.

In the

later

part

of Ma

rch du

e to t

he co

untry

wi

de lo

ckdo

wn th

e res

ource

s wer

e re-

direc

ted

to su

ppor

t SAP

S du

ring t

he ro

adblo

cks.



Nu

mber

of

drun

ken d

riving

op

erati

ons

cond

ucted

399

485

520

220

679

459,0

0

1. Du

ring t

he ye

ar 20

19/20

the D

irecto

rate

over

ac

hieve

d by 4

59 du

e to i

ntens

ified e

nforce

ment

due t

o Safe

r Frid

ays a

nd C

losing

rank

s.

2.

The o

ver a

chiev

emen

t was

also

du

e to t

he op

erati

ons d

one d

uring

the

relau

nchin

g of th

e EBA

T at

the P

mb O

ffice.

3.

In the

later

part

of Ma

rch du

e to t

he co

untry

wi

de lo

ckdo

wn th

e res

ource

s wer

e re-

direc

ted

to su

ppor

t SAP

S du

ring t

he ro

adblo

cks.

Nu

mber

of

vehic

les

stopp

ed an

d ch

ecke

d1 2

64 67

489

3 239

1 100

274

1 600

000

1 277

380

-322

620,0

0

1. Fo

r the

year

2019

/20 th

e Dire

ctora

te un

der a

chiev

ed by

322 6

20. H

istor

ically

the

Dire

ctora

te ha

s not

achie

ved t

his ta

rget

due

to offi

cers

spen

ding a

vast

amou

nt of

time o

n va

rious

othe

r fun

ction

s suc

h as d

riving

and

learn

er’s

licen

ce te

sting

, esc

ortin

g of a

bnor

mal

loads

, atte

nding

to pu

blic p

rotes

t acti

ons,

accid

ents

and i

ncide

nts. T

he D

irecto

rate

has m

ade a

requ

est fo

r this

targ

et to

be

revie

wed b

ased

on hi

storic

al ac

hieve

ments

.

2.

The n

umbe

r of c

rash

es at

tende

d to

for th

e yea

r was

2868

with

1700

8 ma

nhou

rs los

t, 290

0 obs

tructi

ons w

ith

1727

3 man

hour

s los

t and

1293

abno

rmal

loads

esco

rted w

ith 92

63 m

anho

urs l

ost.

3. In

the la

ter pa

rt of

March

due t

o the

coun

try

wide

lock

down

the r

esou

rces w

ere r

e-dir

ected

to

supp

ort S

APS

durin

g the

road

block

s.

Nu

mber

of la

w en

force

ment

office

rs em

ploye

d79

978

377

076

884

072

,00

The D

irecto

rate

is in

a pro

cess

of

filling

the v

acan

t pos

ts:

1. Sh

ortlis

ting d

one o

n CPI

Pos

ts an

d co

mpete

ncy d

one o

n the

19th

of Ma

rch

2020

and a

waitin

g inte

rview

dates

whe

n the

natio

nwide

lock

down

has b

een l

ifted.

2. Pa

nel a

ppro

val re

ceive

d for

PPI

Pots

and

await

ing th

e sitti

ng of

the s

hortli

sting

pane

l wh

en th

e nati

onwi

de lo

ckdo

wn ha

s bee

n lifte

d.

3. Sh

ortlis

ting a

nd co

mpete

ncy t

est d

one f

or

SPI P

osts

and i

ntervi

ews w

ill be

done

whe

n the

natio

nwide

lock

down

has b

een l

ifted.

4. Aw

aiting

shor

tlistin

g sitti

ng fo

r PI P

osts

when

the

natio

nwide

lock

down

has b

een l

ifted.



Unde

rtake

go

al dir

ected

en

force

ment

of pu

blic t

rans

port

(Ope

ratio

n Sh

anela

)

881

1 311

1 224

880

907

27,00

The s

timuli

and r

easo

ns th

at ga

ve bi

rth to

co

nditio

ns an

d circ

umsta

nces

of th

e PTE

U co

mpon

ent o

ver a

chiev

emen

t are

main

ly am

ongs

t othe

rs un

-pre

viewe

d circ

umsta

nces

inc

luding

chan

ging c

ondit

ions o

n the

grou

nd

from

time t

o tim

e, ma

inly i

n res

pect

and i

n re

lation

to th

e ong

oing p

ublic

tran

spor

t unr

est

or ta

xi vio

lence

whic

h is p

ersis

tently

and

cons

isten

tly en

gulfe

d our

Pro

vince

durin

g the

en

tire 20

19/20

20 fin

ancia

l yea

r. The

refor

e, the

situa

tion o

n the

grou

nd ne

cess

itated

for

simu

ltane

ous t

actic

al de

ploym

ent o

f our

va

rious

resp

ectiv

e sec

tions

to co

ver t

he en

tire

KZN

Prov

ince a

s the

situa

tion d

eterm

ines o

n the

grou

nd.

PRO

GR

AM

ME

5: C

OM

MU

NIT

Y-B

ASE

D P

RO

GR

AM

ME

EPW

P C

oord

inat

ion

and

Mon

itorin

g

Nu

mber

of jo

bs

create

d63

626

49 50

144

008

58 26

047

305

-10 9

55,00

The

reas

on fo

r not

meeti

ng th

e ann

ual W

ork

Oppo

rtunit

y tar

get is

due t

o the

delay

in

repo

rting o

f Tra

ining

for N

YS an

d PW

Ds w

hich

took p

lace i

n Feb

ruar

y and

Mar

ch 20

20

Nu

mber

of

emplo

ymen

t da

ys cr

eated

4 977

811

4 357

306

3 411

949

4 370

000

4 238

828

-131

172,0

0 T

he re

ason

for n

ot me

eting

the a

nnua

l Per

son

days

targ

et is

due t

o the

delay

in re

portin

g of

Train

ing fo

r NYS

and P

WDs

whic

h too

k plac

e in

Febr

uary

and M

arch

2020

Numb

er of

Fu

ll-Tim

e Eq

uivale

nts

(FTE

’s)21

630

18 94

414

835

19 00

018

430

-570

,00 T

he re

ason

for n

ot me

eting

the a

nnua

l FTE

s tar

get is

due t

o the

delay

in re

portin

g of

Train

ing fo

r NYS

and P

WDs

whic

h too

k plac

e in

Febr

uary

and M

arch

2020

Nu

mber

of

youth

(18-

35)

emplo

yed

17 59

49 5

057 1

159 0

009 6

1161

1,00

The

targ

et for

Youth

was

met.

The

im

pleme

ntatio

n of V

RRM

saw

an im

prov

emen

t in

the ac

hieve

ment

of the

Youth

targ

et

Nu

mber

of

wome

n em

ploye

d46

552

42 38

138

616

42 00

041

119

-881

,00 T

he re

ason

for n

ot me

eting

the a

nnua

l targ

et for

Wom

en is

due t

o the

delay

in re

portin

g of

Train

ing fo

r NYS

and P

WDs

whic

h too

k plac

e in

Febr

uary

and M

arch

2020

Numb

er of

Pe

rsons

With

Di

sabil

ities

emplo

yed

3514

610

111

064

-46,0

0 T

he re

ason

for n

ot me

eting

the a

nnua

l PW

Ds

targe

t is du

e to t

he de

lay in

repo

rting o

f Tr

aining

for N

YS an

d PW

Ds w

hich t

ook p

lace

in Fe

brua

ry an

d Mar

ch 20

20



Com

mun

ity D

evel

opm

ent

Numb

er of

Zib

ambe

le co

ntrac

tors

emplo

yed

44 00

242

714

42 45

143

000

40 52

0-2

480,0

0 T

he ta

rget

for Z

ibamb

ele C

ontra

ctors

was n

ot me

t bec

ause

ther

e was

a de

lay in

Reg

ions

to en

sure

repla

ceme

nts w

ere r

epor

ted an

d su

bmitte

d to t

he re

portin

g offic

e on t

ime

Small

co

ntrac

tors

traine

d thr

ough

the

Vuk

uzak

he

Emer

ging

Contr

actor

De

velop

ment

Prog

ramm

e

397

529

1 297

500

441

-59,0

0

This

targe

t was

not a

chiev

ed du

e to t

he

Depa

rtmen

t hav

ing to

put th

e Vuk

uzak

he po

licy

on ho

ld pe

nding

its re

view.

This

resu

lted i

n the

re

ducti

on of

proje

cts th

at we

re im

pleme

nted

throu

gh th

e Vuk

uzak

he P

olicy

.

Numb

er

of tra

ining

op

portu

nities

cre

ated f

or

wome

n

122

456

599

250

1 290

1 040

,00

This

targe

t has

been

exce

eded

, as p

art

of im

pleme

nting

IGUL

A ra

dical

econ

omic

trans

forma

tion.

The D

epar

tmen

t is pr

ioritis

ing

skills

deve

lopme

nt of

desig

nated

grou

ps in

pa

rticula

rly w

omen

, you

th an

d peo

ple w

ith

disab

ilities

. The

refor

e mor

e effo

rt ha

s bee

n put

acro

ss in

vario

us D

epar

tmen

tal pr

ogra

mmes

to

be m

ore i

nclus

ive of

desig

nated

grou

ps. T

his

has r

esult

ed in

mor

e pro

gram

mes c

hang

ing

their t

arge

ting s

trateg

ies to

resp

ond i

n IGU

LA

by fo

cusin

g lar

gely

on w

omen

, you

th an

d pe

ople

with

disab

ilities

.

Numb

er

of tra

ining

op

portu

nities

cre

ated f

or

youth

193

546

556

250

1 392

1 142

,00

This

targe

t has

been

exce

eded

, as p

art

of im

pleme

nting

IGUL

A ra

dical

econ

omic

trans

forma

tion.

The D

epar

tmen

t is pr

ioritis

ing

skills

deve

lopme

nt of

desig

nated

grou

ps in

pa

rticula

rly w

omen

, you

th an

d peo

ple w

ith

disab

ilities

. The

refor

e mor

e effo

rt ha

s bee

n put

acro

ss in

vario

us D

epar

tmen

tal pr

ogra

mmes

to

be m

ore i

nclus

ive of

desig

nated

grou

ps. T

his

has r

esult

ed in

mor

e pro

gram

mes c

hang

ing

their t

arge

ting s

trateg

ies to

resp

ond i

n IGU

LA

by fo

cusin

g lar

gely

on w

omen

, you

th an

d pe

ople

with

disab

ilities

.



Numb

er

of tra

ining

op

portu

nities

cre

ated f

or

peop

le wi

th dis

abilit

ies

02

48

409

401

This

targe

t has

been

exce

eded

, as p

art

of im

pleme

nting

IGUL

A ra

dical

econ

omic

trans

forma

tion.

The D

epar

tmen

t is pr

ioritis

ing

skills

deve

lopme

nt of

desig

nated

grou

ps in

pa

rticula

rly w

omen

, you

th an

d peo

ple w

ith

disab

ilities

. The

refor

e mor

e effo

rt ha

s bee

n put

acro

ss in

vario

us D

epar

tmen

tal pr

ogra

mmes

to

be m

ore i

nclus

ive of

desig

nated

grou

ps. T

his

has r

esult

ed in

mor

e pro

gram

mes c

hang

ing

their t

arge

ting s

trateg

ies to

resp

ond i

n IGU

LA

by fo

cusin

g lar

gely

on w

omen

, you

th an

d pe

ople

with

disab

ilities

.




GOVERNANCEPART C:



RISK MANAGEMENT

In setting up the risk appetite, management adopted the ISO31000 guide to use the consequence table. The Department developed the consequence table using the rating of 20% to 100% where:

• 20% is Insignificant;

• 40% is Minor;

• 60% is moderate;

• 80% is Major; and

• 100% is critical

To accomplish the set Risk Appetite statement, the Departmental Risk Management unit communicated the Risk Appetite through risk assessment workshops. The process of risk assessment aided the development of the Departmental Risk Profile for the financial year 2019/20. The Risk Profile encompassed of 81 risks with a total of 175 mitigation plans identified to manage such risks.

The Risk Management Directorate monitored the Risk Profile on regular basis and produced reports for the department’s Risk Management Committee, and the Cluster Audit and Risk (CARC) Committee on a quarterly basis. To date there are 44 risk that were managed within the appetite level and 30 in the tolerance level. The table below depicts the whole risk profile into the various levels of risks and provides a high-level statistical view of how the department made progress in terms of implementing risk mitigation plans.

PART C: GOVERNANCE


No. Risk Magnitude

Period/ QTR No. of Identified Risks

No. of Agreed Action Plans

No. of Completed Action Plans

No. of Outstanding Action Plans

No. Risk Magnitude

Period/ QTR No. of Identified Risks


No. of Completed Action Plans


1. Critical Quarter 1 5 17 5 12Quarter 2 04 11 0 11Quarter 3 02 07 01 06Quarter 4 02 07 01 06

2. Major Quarter 1 7 19 6 13

Quarter 2 12 29 10 19Quarter 3 07 18 06 12

Quarter 4 05 13 6 73. Moderate Quarter 1 26 50 15 35

Quarter 2 28 57 14 43Quarter 3 31 68 25 43Quarter 4 30 63 25 38

4. Minor Quarter 1 25 36 23 13Quarter 2 23 53 32 21Quarter 3 22 48 28 20Quarter 4 20 46 30 16

5. Insignificant Quarter 1 14 21 13 8Quarter 2 14 25 11 14Quarter 3 19 32 24 8Quarter 4 24 47 31 16

Quarter 1 77 143 62 81Quarter 2 81 175 67 108Quarter 3 81 173 84 89Quarter 4 81 176 93 83

PART C: GOVERNANCE


Management had identified risks in 10 categories. The table below replicates how the 28 risks ware management to the tolerable level and the 44 to the risk appetite level per risk category during the financial year 2019/2020.

Analysis

Stra

tegi

c Ri

sk

Ope

ratio

nal R

isks

Info

rmati

on T

echn

olog

y Ri

sks

Fina

ncia

l Man

agem

ent R

isks

Occ

upati

onal

Hea

lth a

nd

Safe

ty

Disa

ster

Man

agem

ent r

isks

Proj

ect R

isks

Frau

d an

d Co

rrup

tion

Ethi

cs R

isks

Com

plia

nce

Risk

s

Tota

l

Total Risk Identified 6 19 06 03 2 06 16 7 9 7 81Risk remaining outside the Appetite and Tolerance levels

6 0 1 1 0 0 0 1 0 0 9

Risk Management to/within Tolerances level

0 7 2 1 01 3 7 0 2 5 28

Risk Management to/within Appetite.

0 12 3 01 01 3 9 6 7 2 44

FRAUD PREVENTION AND ANTI-CORRUPTION The execution of the Fraud Prevention Plans was continued, including awareness workshops on fraud and corruption to promote good ethics in the department. The Departmental Ethic Committee was established, and members of this committee were formally appointed by the Head of the Department. Trainig of the Ethics committee held on 13 March 2020. Training covered e-disclosure, code of conduct and roles and responsibilities of the Ethics Committee.

The culture of zero tolerance to fraud and corruption was maintained. Consequently, the department has ensured that all cases emerging from the application of the Whistle Blowing Policy are being investigated. The department has continued to engage with the Forensic Investigation Unit within the Provincial Internal Audit Services well and the Public Service Commission.

There were 22 cases referred for forensic investigations, 10 were completed and 12 are still in progress. 3 cases have been referred for a criminal investigation. The total number of 12 cases which are not finalized during the 2019/20 financial year will be completed during 2020/21 financial year.

The internal Labour Relations unit is currently implementing the recommendations made from these forensic reports. To date 1 official has been dismissed and the process of recovering monies is being initiated.

PART C: GOVERNANCE


PART C: GOVERNANCE

2.5.7 FINANCE PORTFOLIO COMMITTEEFinance Portfolio Committee Meetings were held on the following dates:

Resolu-tion No.

Subject Details Response by the Department

28/2019 TRANSVERSAL: LATE ISSUING OF ORDERS

Noting that:

a) Most departments that registered larger under-expenditure blamed late receipt of invoices as one of the reasons for underspending their budgets.

b) The late issuing of invoices by service providers is linked to the Department’s late issuing of orders with some departments issuing orders three months before the end of the financial year.

c) This is indicative of poor prior planning and non-adherence to departments’ own Annual Performance Plans.

The Committee resolves that:

1. Accounting Officers must ensure their departments do proper prior planning, with timelines, and issue orders timeously in order to avoid underspending due to receiving invoices late.

2. Accounting Officers must ensure that service providers are paid within 30 days of issuing invoices to the departments in line with the PFMA and Treasury Regulations.

1. The department issued a circular on settlement of payments within 30 days detailing measures to be undertaken to ensure compliance with Treasury Regulation 8.2.3.

2. Responsibility Managers were instructed to ensure that reasons for the delay in the payment of invoices within 30 days are documented on the payment voucher together with the relevant documentation to support reasons provided.

3. The department issued a circular on non-compliance with payment of invoices within 30 days.

4. Financial Services at Head Office circulates a list of all invoices that were not paid within 30 days and Responsibility Managers are required to complete an exception report detailing all invoices that were not paid within 30 days together with reasons for not making payments timeously.

5. Responsibility Managers were also instructed to implement consequence management processes to ensure that individuals are held accountable for invoices that are paid late without valid reasons.

6. The issue of non-payment of invoices within 30 days was also discussed during the Audit Improvement Workshops held for all four Regional Offices and Head Office.

7. A report of invoices not paid within 30 days detailing the number and values of Invoices not paid per Responsibility is also tabled at Monthly Management Meetings.


PART C: GOVERNANCE


29/2019 TRANSVERSAL: TRANSFERS TO ENTITIES, MUNICIPALITIES AND OTHER BENEFICIARIES

Noting that:

a) There was a notable increase in the transfer of funds to entities, municipalities and other beneficiaries by Departments on the last month of the financial year.

b) Reasons for the late transfer of funds include non-signing of Service Level Agreements between departments and beneficiaries until the last minute.

c) This is indicative of poor prior planning and non-adherence to departments’ own Annual Performance Plans.


Accounting Officers must ensure that departments conclude Service Level Agreements with entities, municipalities and other beneficiaries preferably within the first quarter of the financial year in order to effect transfers timeously.

The department hereby notes the

resolution by the Finance Portfolio Committee

30/2019 TRANSVERSAL: CONDITIONAL GRANT EXPENDITURE

Noting that:

While there has been marked improvement in the expenditure of conditional grants by departments generally in the last financial year 2018/19, there were some departments that regressed by failing to spend in full their EPWP as well as IASP grants.

In the 2019/2020 financial year, R 71,6million has been allocated to the KZN Department of Transport. R 50, 173million has been transferred to KZN DOT by NDPW as at August 2019.

To date R 34,671million has been spent from the EPWP Integrated Grant which equates to 48% of the total allocation and 69% of the transferred allocation.


PART C: GOVERNANCE

Resolution No.


30/2019

(cont…)


1. Accounting Officers must ensure full expenditure of all conditional grants and account for these correctly.

2. Accounting Officers are urged to ensure that their departments plan for conditional grants well in advance in order to ensure they are spent in full or fully committed by year end.

The Department intends to improve its expenditure in January 2019 as it plans to conduct Medical Examinations to the Vukayibambe Routine Road Maintenance Programme which is funded through the grant. Also, expenditure on L1578 will improve as more than 85 participants have been employed into the projects and the NYS Training has commenced.

The EPWP Integrated Grant Project List for 2019/2020 financial year has been amended by removing D954, L1633, Training and NYS. The funds have been re-allocated to the Vukayibambe Routine Road Maintenance Programme; this is due to non – commencement of the initially planned Programmes due to delays in the procurement of Service Providers.

The Table below indicated the list and progress of Programmes funded through the Integrated Grant;

Project Name

Re-gion

Planned WO

WO Re-ported on ERS

IG - Al-located Budget 2019/2020

Expenditure to date

Overall Construc-tion Prog-ress (%)

Comments

Construction of L1578 using LIC methods

DBN 400 45 9,000,000 7,279, 486.72 40% A rollover of R2.4 million is allocated to L1578

Routine Road Maintenance on Provincial Roads-EMP

EMP 150 793 15,650,000 9,358,397.77 60% In progress and in the process of procuring medical examinations as required by the OHS Act.

Routine Road Maintenance on Provincial Roads – LDY

LDY 150 919 15,650,000 5,175,303.85 50%

Routine Road Maintenance on Provincial Roads -DUR

DBN 75 37 400,000 276, 550 60%

Routine Road Maintenance on Provincial Roads - eThekwini

DBN 800 850 15,250,000 6,419,777.26 50%

Routine road Maintenance on Provincial roads - PMB

PMB 800 541 15,650,000 5,515,612.54 50%


PART C: GOVERNANCE

Resolution No.


31/2019

TRANSVERSAL: UN-DERSPENDING ON COMPENSATION OF EMPLOYEES

Noting that:

a) Many departments in the last financial year 2018/19 underspent their budgets under Compensation of employees.

b) One of the reasons given for underspending is that there are lengthy recruitment processes that lead to delays in filling of funded vacant posts, and this leads to underspending on Compensation of employees.

c) Some departments deliberately park money under Compensation of employees and then do virements to use that money to defray expenditure pressures elsewhere in their budgets.


1. Accounting officers must provide a list of funded vacant posts that are a priority in their departments together with a plan that has timelines indicating how the recruitment processes to fill in vacant posts will be expedited.

1. The Department received authority to fill 1021 posts from the Premier. As at the beginning of November 2019, the Department has 742 out of the 1021 posts still to fill. A list of the 742 vacant priority posts is attached.

8 of the abovementioned 742 posts cannot be advertised and filled at present as they require re-evaluation / review of the functions. It is therefore not possible to forecast when such posts will be filled as it is dependent on other processes to be finalised first.

Of the 734 remaining posts, the plan for filling such is as follows:

NO. OF POSTS PLANNED DATE FOR FILLING

156 (already advertised) 30 June 2020

289 (to be advertised by 31 July 2020)

31 December 2020

289 (to be advertised by 31 January 2021)

30 June 2021

2. The department hereby notes the resolution by the Finance Portfolio Committee. The Department of Transport budgeted for the full proposed organisational structure to ensure that it can fill all the posts as soon as the structure has been approved by DPSA. Unfortunately, there has been a delay in the approval of the structure and this has resulted in the department not being able to fill posts as envisaged thus underspending.


PART C: GOVERNANCE

Resolution No.


31/2019

(cont…)

2. Accounting Officers are urged to refrain from the practice of parking funds under Compensation of employees and then do virements so they can use these funds elsewhere in their budgets.

32/2019 TRANSVERSAL: CONTINUOUS TRANSGRESSION AND FLOUTING OF THE PFMA AND TREASURY REGULA-TIONS

Noting that:

a) The PFMA Section 30(2)(f) and Section 43 allow departments to process virements not exceeding 8% of the appropriated amount in a particular programme. The PFMA requires departments to approval from Treasury prior to processing virements over and above 8% threshold.

b) Some departments continue to transgress the PFMA and Treasury Regulations by continuously processing excessive virements without obtaining prior approval from Treasury.


1. Accounting Officers must ensure that where the PFMA and Treasury Regulations are flouted, there must be consequence management against the implicated officials, in accordance with the PFMA and any other enabling legislation.

1. The department hereby notes the resolution by the Finance Portfolio Committee.

2. The Department of Transport has sought approval from Treasury prior to processing virements over and above the 8% threshold.


PART C: GOVERNANCE

Resolution No.


32/2019

(cont…)

2. Failure to implement consequence management may result in the Auditor-General invoking the Public Audit Amendment Act 5 of 2018 which empowers the Auditor-General to take further action, including remedial action where losses are suffered by the State, and where possible, to recover those losses and refer certain material irregularities for investigation.

33/2019 TRANSFER: GENERAL UNDERSPENDING BY ENTITIES

Noting that:

a) Some entities registered significant underspending of their budgets in the 2018/19 financial year.

b) Reasons for underspending include uncertainty that is created by the ongoing rationalisation of entities, high staff turnover and non-filling of vacant funded posts.


1. Provincial Treasury must provide a report on the progress on the rationalisation of entities process in the province showing a list of the affected entities.

The department hereby notes the resolution by the Finance Portfolio Committee.


Resolution No. Subject Details Response by the Department

33/2019

(cont…)

2. Accounting Authorities of all entities are urged to ensure that their budgets are spent in full and accounted for properly at year-end.

3. Accounting Authorities of all entities must ensure that all funded vacant posts are filled so as to avoid underspending on Compensation of employees as well as increase efficiency in these entities.

34/2019 TRANSVERSAL: EXPENDITURE OF ALL SPECIFICALLY AND EXCLUSIVELY APPROPRIATED FUNDS

Noting that:

(a) Some departments are failing to spend their specifically and exclusively appropriated funding.

(b) Some departments continue to utilise their specifically and exclusively appropriated funding to address pressures elsewhere in their budget and thus contravene Treasury Regulations, the PFMA and the KwaZulu-Natal Appropriation Bill.


1. Accounting Officers must ensure that specifically and exclusively appropriated funds are spent in full.


2. The Department of Transport’s specifically and exclusively appropriated funding relates to Learner Transport Services and these funds were fully spent in the 2018/19 financial year.

PART C: GOVERNANCE



34/2019

(cont…)

2. Where repurposing of these funds (specifically and exclusively appropriated) is required, the applicable authorisation procedures must be followed.

35/2019 TRANSVERSAL: MONTHLY CASH-FLOW ANALYSIS TO BE GIVEN TO PORTFOLIO COMMITTEE

Noting that:

(a) Departments are currently not providing monthly cash-flow analysis to their respective portfolio committees for monitoring.

(b) Monthly cash-flow analysis provide better insight and early indication of the department’s midyear and year-end projected expenditure.


Accounting Officers and Accounting Authorities must provide monthly cash-flow analysis to their respective portfolio committees for monitoring of expenditure in 2019/20.


2. The Department of Transport has only been required to provide quarterly reports to the Transport Portfolio Committee.

69/2019 TRANSPORT: NON-FILLING OF VACANT POSTS

Noting that:

a) The Department is slow in filling vacant posts.

b) The Department is proposing to amend its organisational structure.

.

The Department received comments regarding the consulted proposed organisational structure from the MPSA. The Department did not agree with some of the comments / issues that were raised by the Minister. Request were made by the Department to meeting with the officials from the Department of Public Service and Administration (DPSA) with a view to discuss the comments. Unfortunately, the request was turned down by the DPSA through a letter dated 12/11/2019.

The Department will engage with stakeholders and re-submit the amended organisational structure to the DPSA

PART C: GOVERNANCE



69/2019

(cont…)


The Accounting Officer must provide a report to the Committee by 15 February 2020 on the following:

1. a progress report on the proposed organisational structure.

2. a report on getting DPSA approval for the revised organisational structure

70/2019 TRANSPORT: ROADS DAMAGED BY STORM

Noting that:

a) The Department incurred additional budgetary pressure of R199.888 million because of the 111 roads that were damaged by storms.

b) The Department did not notify Provincial Treasury about this damage and costs associated with it.



1. Why did the Department not notify Provincial Treasury about the storm damage on the roads and costs associated with it?

2. progress on the steps that the PDMC in CoGTA has taken regarding the damage caused by the storm on these roads.

A detailed report was prepared, signed and sent to Provincial Disaster Management Centre on the 21st of June 2019, and Treasury was aware of the storm damage, but felt that since the letter was submitted to COGTA, it was enough.

There has been no feedback to date, however the Department shifted internal funds of R100 million to take care of the affected roads while waiting for PDMC. The Department will continue to follow up with the PDMC.

PART C: GOVERNANCE



71/2019 TRANSPORT: CROSS-BORDER CRIME FIGHTING STRUCTURE

Noting that:

a) Funds relating to the cross-border crime fighting structure are suspended until further notice.

b) The Department indicated that they were in the process of submitting a document to Cabinet for them to consider removing the condition that states that R50 million allocated for the project should be reimbursed back to the province from national Department of Public Works.



1. Progress regarding the cross-border crime fighting structure.

2. Progress on the submission of the document to Cabinet and whether Cabinet has considered the document and given a response to the Department.

On the 18th of June 2019 the Contractor did a trial mix in order to determine the appropriate striking time for the panels. The concrete mix design is has been approved. Panels have been casted and are awaiting transportation to site. In the effort to use local plant as much as possible and still maintain the acceptable level of quality and compliance, the plant needed to transport the panels is being checked by the main contractor before any appointment is made.

The main challenge is getting the Memorandum of Understanding (MoU) between KZN Department of Transport and National Department of Public Works signed and a need for addition funding as the approved tender value is R85 796 470.06 which is R35,8 million more than the allocated budget of R50 million. A meeting is scheduled for Tuesday the 18th of February 2020.

The Cabinet Memo for the release of budget allocation for construction of new jersey barriers to deal with cross border crime in Manguzi, Umkhanyakude district was compiled, signed off by the then Acting Head: Transport Ms S.M Ngubo and submitted to cabinet in November 2019 for consideration by the Cabinet

PART C: GOVERNANCE


PART C: GOVERNANCE


72/2019 TRANSPORT: ROAD SAFE-TY IMPROVEMENT

Noting that:

a) The Department received R40 million from RTMC in 2014/15 for Road Safety Improvement Programme.

b) To date, only R27.677 million of those funds has been spent.

c) The balance of R12.323 million has been rolled over to 2019/20.



1. Explain the delays in spending the full R40 million allocated for Road Safety Improvement Programme.

2. Indicate whether the balance of R12.323 million will be spent in full on Road Safety Improvement Programme by year-end.

The RTMC funding will be utilised to implement service delivery projects within RTI as well as Road Safety Directorate.

The current unspent funds available in terms of the BAS reports amounts to R15 636 730, 53.

The summary of interventions and costs are as follows:

Balance as per BAS report

R15 636 730,53

RTI Interventions

R12 000 000

5 Mobile Evidential Alcohol Breath Testing Units

R6 500 000

Upgrading of 5 Provincial Driving Licence Testing Centres

R5 500 000

Road Safety interventions

R3 619 430

Purchase of 2 x dedicated road safety vehicles

R1 008 170

Resource equipment, education tools

R3 619 430

Sub total R15 619 430

Surplus R17 300,53

76/2019 TRANSVERSAL: UNDER-SPENDING ON INFRA-STRUCTURE

Noting that:

a) One of the priorities of government in the current administration is to utilise infrastructure development to re-ignite the economy of the province.

The Accounting Officer appointed a turn around strategy committee in October 2019 to address the issues of under expenditure. A list of projects have been placed on the fast tracked projects list including projects that were terminated. The intention of this intervention strategy was to identify terminated projects that were close to completion, fast track the appointment of service providers to complete the works so as to assist with the expenditure and outputs. Regravelling and Blading contracts in different regions were also identified and fast tracked from the Head Office to catch up on expenditure and outputs.


PART C: GOVERNANCE


76/2019

(cont…)

b) Most Departments have recorded underspending against their infrastructure budgets at midyear.

(c) Most Departments have indicated that the Department of Public Works is the one delaying the implementation of infrastructure projects, which then results in the slow expenditure of the Departments’ infrastructure budgets


1. Accounting Officers must prioritise expenditure of their infrastructure budgets in order to boost the economy and help create much needed job opportunities in the province.

2. Accounting Officers must engage the Department of Public Works regarding the pace of rolling out infrastructure projects as the implementing agent of choice in the province.

The Department of Public Works is urged to assist Departments by expediting infrastructure projects in the province.

Although there hasn’t been a final implementation plan of the resolution, the Department is currently finalising two MOA’s, first MOA is to implement Bailey Bridges which will assist with fast tracking the service delivery for river crossing as there is an increased number of school children that are missing school days when there are heavy rains and also drownings. Second MOA is for the cross-border crime fighting new jersey barriers, this will assist in fast tracking the implementation of the structure, further engagements with DPWI will take place as per the resolution


PART C: GOVERNANCE


77/2019 TRANSVERSAL: UNDERSPENDING AGAINST COMPENSATION OF EMPLOYEES

Noting that:

a) Some Departments recorded underspending against Compensation of employees at midyear.

b) Some Departments have a high number of vacant funded posts, which contributes to the underspending against Compensation of employees.

c) Some Departments have embarked on reviewing their organisational structures and therefore are not filling vacant funding posts.


1. Accounting Officers must expedite expenditure against Compensation of employees by filling vacant posts so as not to compromise service delivery.

2. Accounting Officers must expedite all organisational review processes that they have embarked on.

3. Accounting Officers must ensure that all internal recruitment processes are expedited and shortened in order to speed up the filling of vacant funded posts.

The Department was granted approval by the Premier to fill 1021 posts. It was later established that 35 of the posts were a duplication hence the Department only has to fill 986 posts.

As at the beginning of February 2020, the Department has filled 243 of the 986 posts leaving 743 posts still to be filled.

16 of the abovementioned 743 posts cannot be advertised and filled at present as they require re-evaluation / review of functions. It is therefore not possible to forecast when the 16 posts will be filled as it is dependent on other processes to be finalised first. This leaves 727 posts to be filled. The plan for the filling of the 727 posts is as follows:

PLANNED FINANCIAL YEAR FOR FILLING NO. OF POSTS

2019/2020 112020/2021 2042021/2022 2862022/2023 226

727

In an attempt to reduce and shorten recruitment processes, the Human Resource Practices has procured the services of a service provider to assist with the sifting and scheduling of the large volumes of applications received for advertised entry level positions. Approval has also been granted for employees in the Recruitment and Selection Section to work overtime to fast-track the sifting and scheduling of applications received. The quicker that the applications received for vacant advertised posts are submitted to responsibility managers, the quicker they will be able to embark on subsequent selection processes which will result in a faster turnaround time to fill the posts.


PART C: GOVERNANCE


79/2019 TRANSVERSAL: UNDERSPENDING AGAINST CONDITIONAL GRANTS AND SPECIFICALLY AND EXCLUSIVELY APPROPRIATED FUNDS

Noting that:

Some Departments recorded underspending against conditional grants and specifically and exclusively appropriated funds at midyear.


1. Accounting Officers must ensure that they spend their Conditional grants allocations and specific and exclusive appropriations in full at year-end.

Failure to spend the conditional grants and specific and exclusive appropriations may result in reduced allocations in the future

a) The department notes the resolution of the Portfolio Committee for Finance.

b) The Department of Transport will attempt by all means to fully spend its conditional grant allocations by the end of the financial year.


SCOPA RESOLUTIONSSCOPA Meetings were held on the following dates:

22 OCTOBER 20196 FEBRUARY 2020

Resolution No.


36/2019 DEPARTMENT OF TRANSPORT: IMMOVABLE TANGIBLE CAPITAL ASSETS

Noting that:

• The Auditor-General was unable to obtain sufficient appropriate audit evidence that immovable tangible capital assets had been properly accounted for due to the status of the accounting records relating to prior years.

• The Department in addition did not properly account for capital work in progress.

• The Auditor-General was accordingly unable to determine whether further adjustments were necessary to immovable tangible capital assets stated at R56.47 billion as well as capital work in progress stated at R7.24 billion.

• The Department is reviewing all supporting documents.

Outstanding Vouchers

The table below represents the total outstanding vouchers from the sample as at 7 November 2019

Financial Year 2018/ 2019

2017/ 2018

2016/ 2017

2015/ 2016

2014/ 2015

2013/ 2014

Totals

Total No. of Vouchers Required

995 1,346 1,970 2,418 3,219 3,692 13,640

No. of Vouchers Received

987 1,300 1,713 1,630 2,736 3,093 11,459

Total No. of outstanding vouchers

8 46 257 788 483 599 2,181

An intervention with voucher control was initiated and the problem associated with not obtaining documentation from Metrofile was also resolved.

The table below represents the total outstanding vouchers from the sample as at 10 December 2019

Financial Year

2018/19 2017/18 2016/17 2015/16 2014/15 2013/14 Totals

Total No. of Vouchers Required

995 1,346 1,970 2,418 3,219 3,692 13,640

No. of Vouchers Received

988 1,318 1,777 2,005 2,929 3,349 12,366


7 28 193 413 290 343 1,274

PART C: GOVERNANCE


Resolution No.


36/2019

(cont…)

The Committees resolves: -

That the Accounting Officer report to the Committee by 31 January 2020 on progress made in resolving this audit finding.

907 additional vouchers were received within a period of one month. The main issue is that outstanding vouchers relating to 2013/14 and 2014/15 period remain high.

Financial Year

2018/ 2019

2017/ 2018

2016/ 2017

2015/ 2016

2014/ 2015

2013/ 2014

Totals

Total No. of payments

995 1,346 1,970 2,418 3,219 3,692 13,640

Total No. of payments received

990 1,321 1,784 2,201 2,957 3,368 12,621

Cancelled payments

-

- 33 20 10 6 69


5 25 153 197 252 318 950

Reconciliation of the vouchers to valuations as stated in the immovable asset register

All payment vouchers received to date have been reconciled to the schedules stated on the immovable assets register.

Engagements with the Auditor General and alternative methodologies relating to valuation of the road network

Engagements have been undertaken with the Office of the Auditor General to discuss the possibilities of valuing the road network as at 31 March 2017. The department has an updated road condition assessment and valuation at this date and believes that the use of this valuation together with the subsequent three financial years expenditure with provide a better basis for disclosing and auditing the Immovable Asset Register. This revised register would not have the historic problems experienced missing documents and inaccuracies from years before a proper register was being maintained.

PART C: GOVERNANCE


Resolution No.


36/2019

(cont…)

Valuation as at 31 March 2017

R’000

Paved 25,431,064

Unpaved 4,337,713

Structures 3,971,877

Total Road Infrastructure Value as at 31 March 2017 R33,740,654

Expenditure 2017/18 1,453,938

Expenditure 2018/19 2,314,759

Total Value as at 31 March 2019 R37,509,351

Draft immovable assets register

The department has prepared an immovable asset register up to period 30 November 2019, and the immovable register will be provided to the Office of the Auditor General early in the month of February 2020 to inform their planning processes and to allow for earlier testing of the asset register.

37/2019 DEPARTMENT OF TRANSPORT: COMMITMENTS TO CURRENT AND CAPITAL EXPENDITURE

Noting that:

• The Department did not properly record commitments to current and capital expenditure due to inadequate systems and processes. The Auditor-General was accordingly unable to determine whether further adjustments were necessary to commitments stated at R6.7 billion.

The Department requested and collected order books dating back to the year 2017/18 from all cost centres and regions. An exercise has been conducted to determine the full extent of the commitments of current and capital expenditure. A draft disclosure has been compiled and is currently being reviewed and internally tested to ensure the completeness of the disclosure. This exercise will culminate in final report to the Auditor-General to confirm all commitments have been reported correctly by the Department.

Since October 2019, the Department has centralized the issuing of purchase order books. This approach increases control over the orders issued and the ability to centrally determine the accuracy of commitments at any given point.

The Department has further written to Provincial Treasury to request the implementation of the Logis system to electronically issue orders and manage commitments. This system, once implemented, will bring to zero the number of unreported commitments and over-reporting of commitments. Provincial Treasury is yet to announce its decision on the request.

PART C: GOVERNANCE


PART C: GOVERNANCE

Resolution No.


37/2019

(cont…)

• The Department operates in a decentralised manner in the regions where orders are issued at the various offices where services are rendered. The Department had not identified, through the manual consolidation process, all orders issued by the various offices before the end of the financial year.

• The Department has recalled all old order books for review and is finalising a revised disclosure of the March 2019 commitments for interim auditing in December 2019. The Department has also implemented a new order system to monitor issued orders and track BEC, BAC and HOD approvals.

The Committee resolves: -

That the Accounting Officer report to the Committee by 31 January 2020 on progress made in resolving this audit finding and that the steps implemented will prevent a recurrence in the 2019/20 financial year.


PART C: GOVERNANCE


38/2019 DEPARTMENT OF TRANSPORT: MATERIAL UNDERSPENDING OF THE BUDGET: R265.94 MILLION

Noting that:

(a) The Department has materially underspent its budget by R265.94 million in programme 2 – Transport Infrastructure, due to delays in awarding a departmental contract for the rehabilitation of surfaced roads, due to the large volume of bids received. The contract was only finalised and awarded in February 2019 and will be used for the 2019/20 rehabilitation programme.

(b) As a remedial measure, the Department participated in the eThekwini Metro and Newcastle Municipality contracts from November 2018 and spent R163 million by the end of March 2019 and a further R73 million by May 2019.

The Committee resolves: -

That the Accounting Officer report to the Committee by 31 January 2020 on:

(i) The impact that the expenditure on the municipal contracts in 2018/19 had on the provincial contract;

(i) The municipal contracts did not affect the provincial contract as the provincial contract was designed as a database of suppliers that are invited to price specific projects as and when the department requires rehabilitation work to be performed. The contract period of the provincial contract only commenced after the completion of the works performed on the municipal contract.

(ii) There was no revision in the provincial contract as it does not have a fixed contract price.

(iii) The tender was advertised on 8 May 2018 and closed on 25 May 2018.

(iv) Due to the large volumes of offers received (1005 tender offers) the evaluation process took 8 months to complete.

(v) The contract is now in place for three years, the contract will end in April 2022 and procurement processes to put a new contract in place are planned to start 12 months prior to the end of the contract.


PART C: GOVERNANCE


38/2019

(cont…)

(ii) Whether the provincial contract has been adjusted downwards as a result;

(iii) When the tender was advertised in 2018/19;

(iv) Whether the delay in awarding the bid was preventable; and

(v) Planned interventions to avoid a recurrence in future years.

39/2019 DEPARTMENT OF TRANSPORT: PREDETER-MINED OBJECTIVES – PROGRAMME 2: TRANS-PORT INFRASTRUCTURE (KILOMETRES MAIN-TAINED BY ZIBAMBELE CONTRACTORS)

Noting:

(a) The audit findings on the usefulness and reliability of performance information in Programme 2: Transport Infrastructure relating to kilometres maintained by Zibambele contractors and that insufficient appropriate audit evidence was obtained for the reporting of achievements against the target. This was due to inadequate systems and processes and the failure by management to review underlying schedules.

Further to the audit findings, the outputs for activities performed by Zibambele participants are being measured by the Field Support Officers at an area office level. The outputs are captured on the Service Delivery Report (SDR).

Resolution No. Subject Details Response by the Department39/2019

(cont…)

(b) The Department has updated the procedure manual for managing the performance of Zibambele contractors and the evidence to be produced for this indicator will be the registers that capture the kilometres maintained by each contractor.


The Accounting Officer report to the Committee by 31 January 2020 on whether the departmental interventions have successfully addressed this audit finding and that the steps implemented will prevent a recurrence in the 2019/20 financial year

50/2019 TRANSVERSAL RESOLUTION (ALL PROVINCIAL DEPARTMENTS) – IRREGULAR EXPENDITURE OF R11.421 907 BILLION RECORDED IN THE 2018/19 FINANCIAL YEAR

Noting that:

(a) The value of irregular expenditure for all provincial departments in the 2018/19 financial year was R11 421 907 billion. The cumulative value of irregular expenditure for all departments as at 31 March 2019 was R41 819 917 billion.

A report was submitted to the Committee



50/2019

(cont…)

The breakdown is as follows

2018/19 Cumulative value as at 31 March 2019

Department R’000 R’000

Office of the Premier

54 296 137 900

Provincial Legislature

5 711 5 590

Agriculture and Rural Development

125 360 715 757

Economic Development and Tourism

13 063 169 442

Education 1 878 809 6 571 945

Provincial Treasury

1 226 25 706

Health 4 518 835 13 444 301

Human Settlements

1 143 626 4 794 651

Community Safety and Liaison

3 863 19 545

Sport and Recreation

26 847 149 469

Cooperative Governance and Traditional Affairs

67 431 606 828

Transport 3 403 705 14 107 972

Social Development

76 367 722 334

Public Works 14 011 40 743

Arts and Culture

88 757 307 734

TOTAL 11 421 907 41 819 917

PART C: GOVERNANCE


PART C: GOVERNANCE


(cont…)

The main reasons for the irregular expenditure were:

• Payments made on expired contracts

• Fewer than three quotations obtained

• Deviations from inviting competitive bids not in accordance with TR 16A6.4

• Non-submission of declaration of interest forms by suppliers

• Use of implementing agents

• No tax certificates or expired tax certificates

• Non-adherence to local content prescripts

• Contracts entered into with municipalities – no documentation (Human Settlements)

The PFMA provides that an Accounting Officer must take effective steps to prevent irregular expenditure, take disciplinary steps against any official who makes or permits irregular expenditure, and recover losses from officials responsible and that any wilful or negligent failure to comply with these prescripts constitutes an act of financial misconduct.

.


PART C: GOVERNANCE


(cont…)

(b) The interventions proposed by departments to detect and prevent irregular expenditure in future.

The Committee resolves:

That the Accounting Officers of all departments report to the Committee by 31 January 2020 on the following:

[1] Progress made in the implementation of the proposed interventions to improve the control environment to detect and prevent irregular expenditure and to avoid a recurrence of the audit findings in relation to irregular expenditure, as well the effectiveness of these interventions.

[2] The reasons for these interventions not being implemented in the 2018/19 financial year and in prior years and why such omission does not constitute an act of financial misconduct.


PART C: GOVERNANCE


(cont…)

[3] Whether irregular expenditure reported in the annual financial statements in 2018/19 and not yet condoned, has been investigated, the outcomes and findings of the investigations, details of disciplinary steps taken against any official/employee responsible for irregular expenditure and where investigations and disciplinary proceedings have not yet been concluded, the reasons and timeframes for anticipated completion.

[4] In relation to irregular expenditure not yet condoned, steps taken to apply to Provincial Treasury for condonation and progress made and where application has not yet been made, the reasons for this.

[5] Steps taken to recover losses from any official responsible for irregular expenditure and progress made in this regard.

[6] Where irregular expenditure is related to fraud, corruption or other criminal conduct, whether the matter has been reported to the South African Police Service or the Provincial Treasury Internal Audit Services for investigation and progress made in such investigations


PART C: GOVERNANCE


52/2019 TRANSVERSAL RESOLUTION – FRUITLESS AND WASTEFUL EXPENDITURE

Noting that:

• The following departments and public entities reported fruitless and wasteful expenditure in the 2018/19 financial year, relating to the current year and prior years:

Department/ Public Entity

R Reasons

Office of the Premier

4 000 Interest on late payments

KZN Gaming & Betting Board

656 Interest on late payment of invoices

Royal Household Trust

21 000 Interest on overdue accounts

Agriculture and Rural Development

58 000 Interest, no shows, damage to hired vehicle and catering not used

ADA 3 542 Interest on late payment of invoices

Mjindi Farming (Soc) Ltd

8 571 Unstated

KZN Tourism Authority

115 000 Unstated

KZN Liquor Authority

149 196 SARS penalties and Telkom interest

Education 14 249 000

Unstated

Treasury 14 000 Interest paid to SARS

Health 6 089 000 Interest, expired stock medicines, duplicate payment, cancelled bookings, HR matters

Human Settlements

502 000 Interest on outstanding levies and legal costs

KZN Housing Fund

269 000 Interest on unpaid levies

Community Safety & Liaison

4 000 No shows

Sport and Recreation

162 000 Services not rendered and payment on expired contract

COGTA 1 500 000 iziNduna payments, no shows, interest on outstanding payment, SARS penalties, overpaid salaries, rental vehicle damages

Transport 900 000 Construction of P318, annual report reprint, no shows

Social Development

441 000 Interest on overdue account, no shows, reconnection fees, after hours booking

Arts and Culture

5 029 000 Interest on overdue accounts, no shows, legal fees and overpayment to service provider (R4.843 m)

TOTAL 29 518 965

[1] Investigations relating to the accommodation no shows (R25,000) are conducted on an ongoing basis as transactions are identified, the process of setting up debts and resolving transactions where acceptable reasons were provided are being pursued. The transactions relating to the construction of P318 (R734,000) and the reprinting of the annual report (R160,000) are recent transactions and are being investigated by the relevant Responsibility Managers who will prepare a report for with recommendations for approval.

[2] Training has been provided to all management and finance officials at the audit improvement workshops.

[3] The appropriate actions to be taken will be determined from each of the investigation reports.

[4] Investigation of the transactions is still in progress by the respective Responsibility Managers, the outcome of these investigations will be submitted to Labour Relations to ensure that appropriate disciplinary action is implemented.


PART C: GOVERNANCE

Resolution No.


52/2019

(cont…)

(a) In most instances the reasons for the fruitless and wasteful expenditure are unacceptable and had the department or public entity exercised adequate care, the expenditure could have been avoided.

(b) Certain departments and public entities had stated opening balances on fruitless and wasteful expenditure from prior financial years that had not yet been resolved. In some instances, these balances are substantial.

(c) The PFMA provides that the Accounting Officer of a Department and the Accounting Authority of a public entity must take steps to prevent fruitless and wasteful expenditure, take disciplinary steps against an official who makes or permits such expenditure, recover losses from the official responsible and that an Accounting Officer/ Accounting Authority commits an act of financial misconduct if they wilfully or negligently fail to comply with any of these provisions.


Resolution No.


52/2019

(cont…)


That the respective Accounting Officers and Accounting Authorities report to the Committee by 31 January 2020 on the following:

[1] The reasons for the prior years’ fruitless and wasteful expenditure not yet being resolved and steps taken to resolve it, with time frames.

[2] Steps taken to prevent a recurrence of fruitless and wasteful expenditure. Sufficient particularity must be provided to enable the committee to assess the effectiveness of those steps.

[3] The reasons for the steps listed under [2] above not being implemented in the 2018/19 financial year and prior years and why such omission does not constitute an act of financial misconduct.

[4] Which officials are responsible for the fruitless and wasteful expenditure, disciplinary steps taken against those officials and the outcomes thereof, as well as steps taken to recover the losses from them. Where no disciplinary steps or steps to recover the loss were taken, detailed reasons must be provided.

PART C: GOVERNANCE



53/2019 TRANSVERSAL RESOLUTION: PROCUREMENT AND CONTRACT MANAGEMENT

Noting that:

(a) The audit findings for thirteen departments on Procurement and Contract Management emanating from non-compliance with legislation, which overlap with the findings on irregular expenditure are as follows:

Contracts were extended without the necessary approval of a properly designated official as required by section 44 of the PFMA and TR 8.2.1 & 8.2.2.

Competitive bidding process was not followed. Goods and services of a transaction value above R500 000 were procured without inviting competitive bids and deviations were approved although it was practical to invite competitive bids as required by TR 16A.6.1 & TR16A.6.4.

A minimum of three quotations were not obtained.

Non-compliance with Preferential Procurement Regulation 8(2) of 2017 on local content and production. Bid documentation did not stipulate the minimum threshold for local content and production.

Tax clearance certificates not provided as required by TR 16A9.1(d).

On Contract Extensions without the Designated Approval; The Department has adopted a percentage-based delegation of authority for the approval of variations. The Delegation framework has been successfully implemented in the Department. Variations in excess of the prescribed Treasury thresholds are referred to Treasury for approval and recorded in an appropriate register;

On approved deviations where procurement process was practical; The Department has implemented a process where the Director: SCM and CFO review reasons why it is impractical to follow the competitive process. All deviation requests must be supported by the Director SCM and CFO prior to Treasury submission;

On non-compliance with Local Content requirements; The Department obtained training from Provincial Treasury. The requirements for Local Content have been added on the departmental SCM checklists. Furthermore, consulting engineers have been briefed on Local Content requirements to include in infrastructure tender documents. Finally, the departmental Bid Adjudication Committee serves as the final checking authority for whether requirements are being attended to;

On valid tax certificates; The process for the final award of all procurement activities requires that CSD be checked at the time of award, this includes the checking of tax status of the recommended bidder. No award is processed to a service provider whose tax affairs is non-compliant;

On awards to bidders who failed to submit a declaration; All declarations are checked by SCM and included in the adjudication report. Bidders who fail to submit declarations are disqualified in the first stage of evaluation;

On advertisement for minimum period; SCM ensures that all bids are advertised for a minimum of 21 days. The Director SCM approves the shortening of advertisements for quotations that are urgent;

On bid committees not composed as required; The Department appointed a Regional-Bid Adjudication Committee to deal with Regional procurement up to CIDB Grade 4. The department is now fully compliant in this regard;

PART C: GOVERNANCE


Resolution No.


53/2019

(cont…)

Contracts were awarded to bidders who did not submit a declaration on whether they are employed by the State as required by TR 16A8.3.

Invitations for competitive bids were not advertised for the minimum period as required by TR 16A6.3(c).

Bid committees were not composed as required by TR 16A6.2(a), (b) & (c).

Contracts were awarded to bidders based on preferential points not calculated in accordance with the Preferential Procurement Policy Framework Act, 2000.

Contracts were awarded to bidders based on pre-qualification criteria that were not stipulated of were different from those stated in the bid invitation in contravention of Preferential Procurement Regulation 4(1) & (2).

SCM processes were not followed by Municipalities performing work on behalf of the Department.

(b) Non-compliance could have been avoided if management regularly monitored compliance and implemented appropriate controls and processes.

On incorrect calculation of preference points; The bid evaluation and adjudication committees verify the preference points system calculations prior to the award of the bid. Where the Department has advertised the bid using the wrong Preference Points system to calculate points, the bid is cancelled and re-advertised;

On awards based on pre-qualification criteria not identified in the bid documents; The Department has suspended the Vukuzakhe policy and is in the process of finalizing a new contractor development policy. All findings in this regard related to the application of the Vukuzakhe policy

Resolution No.


53/2019

(cont…)

(c) Provincial Treasury has identified support interventions following the 2018/19 audit outcomes. Departments are to submit detailed audit action plans to Treasury by 31 October 2019, which will be reviewed and discussed with all accounting officers, and which Treasury will monitor and report progress on to accounting officers quarterly.


That all Accounting Officers report to the Committee by 31 January 2020 on the following:

[1] Detailed audit action plans submitted to Provincial Treasury specifically to address findings on procurement and contract management plus a progress report on the effectiveness of the audit plans.

[2] Steps implemented to ensure risk assessment processes and reviews are adequate to ensure that key compliance risks are mitigated and responded to in good time to prevent a recurrence

PART C: GOVERNANCE


Resolution No.


54/2019 TRANSVERSAL RESOLUTION – FORENSIC INVESTIGATIONS

Noting that:

The Provincial Internal Audit Services has completed the forensic investigations listed below and has made recommendations which are either still in progress or are yet to be implemented by the relevant departments:

Department Ref No. Recommendations

Public Works FR34/2013 Internal control weaknesses to be improved and service provider to be blacklisted

Public Works FR09/2015 Irregular expenditure of R1 630 636.64 to be disclosed

Public Works FR42/2016 Internal control weaknesses to be improved

Public Works FR20/2017 Close out report issued

Public Works FR33/2017 Disciplinary proceedings not yet instituted

Public Works FR02/2018 Disciplinary proceedings not yet instituted. Criminal proceedings against service provider not yet instituted.

Public Works FR26/2018 Criminal proceedings against service provider not yet instituted

Economic Development

FR14/2017 Disciplinary proceedings not yet instituted.


FR04/2018 PIAS experiencing challenges in obtaining documents and conducting interviews.


FR07/2018 PIAS experiencing challenges in obtaining documents and conducting interviews.


FR09/2018 &

FR30/2018

PIAS experiencing challenges in obtaining documents and conducting interviews.

FR51/2014

The report is to be tabled to the Department by the Provincial Treasury. This was supposed to have been presented to the Department in December 2019.

PART C: GOVERNANCE


PART C: GOVERNANCE

Resolution No.


54/2019

(cont…)

Transport FR51/2014 Criminal proceedings finalised. Disciplinary proceedings to be instituted.

Treasury FR15/2017 Internal control weaknesses to be improved

Education FR30/2012 Disciplinary proceedings underway and criminal investigation in progress

Education FR28/2012 Five disciplinary cases still pending, 12 civil cases are pending, 101 civil cases yet to be instituted, 108 criminal cases still pending

Education FR78/2013 Disciplinary proceedings underway

Education FR27/2015 Disciplinary proceedings underway, civil recovery not yet instituted, criminal case not yet registered

Education FR33/2015 Disciplinary process and civil recovery not yet commenced

Education FR35/2015 Criminal case to be re-registered.

Education FR43/2015 Investigation delayed as insufficient documentation provided by Department

Education FR19/2018 Investigation delayed as insufficient documentation provided by Department

Social Development

FR12/2015 Disciplinary action and civil recovery yet to be instituted. Criminal case still to be registered.

Social Development


Social Development


Social Development

FR20/2018 Criminal case to be registered.


PART C: GOVERNANCE


(54/2019

(cont…)

Health FR27/2016 Disciplinary action yet to instituted

Health FR05/2018 Disciplinary action and civil recovery yet to be instituted. Criminal case still to be registered.

Arts and Culture

FR29/2016 Criminal case still under investigation. Disciplinary action and civil recovery yet to be instituted

COGTA FR30/2016 Disciplinary action yet to be instituted

COGTA FR22/2016 Improvement on Traditional Council governance issues recommended

COGTA FR09/2017 Disciplinary action yet to be instituted

COGTA FR12/2018 Investigation delayed as insufficient documentation provided by Department

COGTA FR34/2018 Investigation delayed as insufficient documentation provided by Department

Premier FR14/2013 DG obtained legal opinion on waiver of disciplinary proceedings. PIAS obtaining further legal opinion. Criminal case yet to be registered.



Premier FR19/2015 DG obtained legal opinion on waiver of disciplinary proceedings. PIAS obtaining further legal opinion. Civil proceedings yet to be instituted. Criminal case yet to be registered.

Communi ty Safety

FR23/2014 Disciplinary action yet to be instituted

Communi ty Safety

FR21/2018 Disciplinary action yet to be instituted


PART C: GOVERNANCE

Resolution No.


54/2019

(cont…)


That the Accounting Officers of the relevant departments report to the Committee by 31 January 2020 on:

(i) The steps taken to implement the recommendations, progress made therein, the reasons for any delays and where no steps are being contemplated, a detailed explanation supported by legal opinion.

(ii) Where forensic investigations are being delayed due to insufficient documentation or information being provided by Departments, an explanation as well as a report on action taken against the guilty officials and steps taken to remedy the default.

55/2019 TRANSVERSAL RESOLUTION – INTERNAL INVESTIGATIONS

Noting that:

Several departments have conducted internal investigations in the 2018/19 financial year relating to various alleged irregularities spanning, in some cases, over more than one financial year. Some of these investigations have been concluded while some are still in progress.

There were eight (08) matters that were reported for investigation. These matters have received a preliminary investigation and are all forwarded the Provincial treasury for a forensic investigation. These are currently receiving attention as FR14/2019(A-H).

All departmental forensic investigations are conducted by the Provincial Treasury.


PART C: GOVERNANCE

Resolution No.


55/2019

(cont…)


That Accounting Officers, by 31 January 2020:

[1] Provide copies of all reports of investigations that have been completed in the 2018/19 financial year to the Committee.

[2] Report to the Committee on progress made in the implementation of the recommendations contained in the reports, including disciplinary cases that have been initiated against officials and the outcomes thereof, criminal cases that have been opened, civil proceedings that have been commenced to recover monies and blacklisting of service providers.

[3] Where investigations are still in progress, provide a report on the anticipated date of completion, challenges experienced in conducting or finalising the investigations and steps taken to address the challenges.

56/2019 TRANSVERSAL RESOLUTION – RISK MANAGEMENT

Noting:

The report of the Provincial Audit and Risk Committee on the lack of adequate risk management in some departments and the slow progress made in the implementation of risk mitigation plans, particularly in addressing risks classified as critical and major.

1) Steps taken to implement the outstanding risk mitigation plans in the 2018/19 Departmental Risk Register.

- The Department reviewed the 2018/19 risks during the risk assessment workshop that was held to develop the 2019/20 risk register. During this process, facilitation started by looking into the 2018/19 risk register to ensure that outstanding mitigation are attended to. Clarity was also sought if the risk will be mitigated using internal or external capacity in order to plan properly.


PART C: GOVERNANCE

Resolution No.


56/2019

(cont…)


That the Accounting Officers of the relevant departments report to the Committee by 31 January 2020 on the following:

[1] The steps taken to implement all outstanding risk mitigation plans identified in the 2018/19 departmental risk registers.

[2] A progress report on the implementation of the 2019/20 departmental risk mitigation plans, particularly those relating to critical and major risks and steps taken to ensure a speedy implementation of risk mitigation plans.

[3] Steps taken to capacitate the departmental risk management function, including risk management training for members of the risk management committee.

[4] Progress made in linking risks to departmental performance indicators.

2) There following depict the progress as per the Departmental Risk Register (Q2):

- The Department has top 20 prioritized risks. These risks have a total of 45 mitigation plans put in place to either terminate, reduce or avoid the risk. There are 11 mitigations that have been completed, 32 are still in progress and 2 at not yet started (these are in relation to the IT offsite storage)

3) Training/awareness of the Risk Appetite was conducted. Currently members of the Risk Committee are completing the National Treasury e-learning training and 50% of members have completed the training.

4) Risks were linked with the departmental objections and performance indicators.

57/2019 TRANSVERSAL RESOLUTION – CONSEQUENCE MANAGEMENT (TRANSGRESSIONS)

Noting that:

(a) During the prior year audit (2017/18 financial year), the Auditor-General reported on findings relating to transgressions by officials or other role players for management to investigate.

1. A Case Management schedule has been drawn up, and remedial action has been taken against one(1) official, resulting in a Written Warning.

2. A consultant has been appointed to investigate the allegations as well as cases regarding consequence management. A meeting is scheduled for 6 January 2020 to hand over the case files. The time frame for these matters to be dealt with is, end of May 2020.


PART C: GOVERNANCE

Resolution No.


57/2019

(cont…)

(b) During the current year audit (2018/19 financial year) the Auditor-General reported that some Departments had not investigated all of some of those matters or had not done so properly.

(c) In the current year audit (2018/19 financial year), the Auditor-General identified further transgressions for management to investigate.



[1] The reasons for their failure to investigate and resolve all matters reported by the Auditor-General for investigation in the 2017/18 audit.

[2] The steps taken to investigate and resolve all the 2017/18 as well as the 2018/19 matters reported by the Auditor-General for investigation and time frames for finalisation thereof.

[3] The findings and recommendations, as well as the outcomes of each investigation, including disciplinary steps taken, civil proceedings commenced for recovery of losses, criminal cases opened where relevant and steps taken to “blacklist” suppliers, where applicable.

3. Disciplinary action will be taken once all case files have been handed over by the consultant


PART C: GOVERNANCE

Resolution No.


58/2019 TRANSVERSAL RESOLUTION – PREDETERMINED OBJECTIVES

Noting:

(a) The material findings of the Auditor-General on the usefulness and reliability of the reported performance information of some Departments.

(b) The root cause was the lack of proper performance management systems and processes and the failure by management to perform adequate verifications to ensure a complete performance report was supported by reliable information.

(c) In some Departments this is a recurring finding where management has failed to implement action plans to address audit findings in previous financial years.


That the Accounting Officers of the relevant departments report to the Committee by 31 January 2020 on measures implemented to address the audit findings and to prevent a recurrence, with timeframes for implementation.

Measures implemented to address audit findings and prevent recur-rence including for implementation.

Key Finding Root Cause Action Responsibility Time frame

Useful-ness and reliability of per-formance informa-tion

Lack of proper per-formance manage-ment sys-tems and processes, and failure by man-agement to perform adequate verifica-tions, to ensure a complete perfor-mance report was supported by reliable informa-tion

1.Have an approved project plan for all projects to be imple-mented to ensure proper project man-agement

2. Have an approved clear procedure manual on data & evidence manage-ment “(with empha-sis/ priority placed on how evidence & data is managed and stored per perfor-mance measure)”

3. Procedure manuals to be used as a guide-line to manage perfor-mance information by existing employees, ensuring that new employees are work-shopped on it.

4.Each component must have in place validation teams to conduct enough validations prior to monthly and quarter-ly reporting to Head Office and to Monitor-ing and Evaluation

5. Periodic checking of reported outputs against the plan and validated information in line with the proce-dure manual

6. Perform Quarterly validation sessions

7. Quarterly Bi-lat-eral on Performance information per pro-gramme

8. Adhere to and implement the audit improvement plan throughout the year.

9. Implement cor-rective measures and consequence manage-ment for non-com-pliance

DDGs of branches

DDGs of branches

Supervisors, Cost Centre Managers, Di-rectors, Chief Directors

Cost Centre Managers, Di-rectors, Chief Directors

Supervisors, Cost Centre Managers, Di-rectors, Chief Directors

M&E

DDGs

HOD and rele-vant DDG

ALL

Line function supervisors and respon-sibility man-agers

31 March

31 March

Ongoing

30 April each year

Ongoing

Post quarterly sign off by the HOD

Quarterly

Ongoing

Ongoing


PART C: GOVERNANCE

Resolution No.


59/2019 TRANSVERSAL RESOLUTION – FILLING OF CRITICAL POSTS

Noting:

That vacancies exist in critical management posts within departments and the adverse effect this is having on audit findings, particularly on compliance with legislation, internal controls and financial and performance management.


That the Accounting Officers of the relevant departments report to the Committee by 31 January 2020 on progress made in the filling of critical posts and the time frames for the filling of those posts.

A report was submitted to the Committee

60/2019 TRANSVERSAL RESOLUTION – MATERIAL MISSTATEMENTS IN ANNUAL FINANCIAL STATEMENTS

Noting that:

(a) The annual financial statements submitted for auditing by some departments were not prepared in accordance with the prescribed financial reporting framework. Material misstatements identified by the auditors were corrected in some instances, resulting in the financial statements receiving an unqualified audit opinion, but in others they were not corrected resulting in a qualified audit opinion.

(b) This has been a recurring finding of the Auditor-General over an extended period.

[1] The non-compliance with s40(1)(b) of the PFMA was as a result of changes made to the financial statements as a result of audit findings made by the AGSA during the audit and the qualifications relating to immovable assets and commitments.

[2] The department does not believe that there was wilful or negligent action by officials that resulted in this finding.

[3] The processes relating to irregular expenditure identification are being improved on an ongoing basis with a system being implemented to assist in this process during the 2020/21 financial year. Further to this processes relating to commitments, accruals and payables are being improved and strengthened with the department anticipating the implementation of an invoice tracking system from the beginning of April 2020 to assist in this process going forward.


PART C: GOVERNANCE

Resolution No.


60/2019

(cont…)

(c) It is the responsibility of the Accounting Officer to prepare financial statements in accordance with generally recognised accounting practices in terms of section 40 of the PFMA and the wilful or negligent failure to do so constitutes financial misconduct in terms of section 81.



[1] The reasons for non-compliance with section 40(1)(b) of the PFMA. Sufficient particularity must be provided to enable the committee to establish whether the failure was due to wilfulness or negligence.

[2] Disciplinary steps taken against any official who acted wilfully or negligently. Where the non-compliance was due to a lack of capacity or skills or vacancies, the report must state the steps taken to address this with time frames.

[3] Measures put in place to prevent a recurrence of this audit finding and an evaluation of the effectiveness of these measures in the current financial year.


PART C: GOVERNANCE

Resolution No.


61/2019 TRANSVERSAL RESOLUTION – EXPENDITURE MANAGEMENT – NON-PAYMENT OF INVOICES WITHIN 30 DAYS

Noting:

(a) The findings of the Auditor-General that some departments are not making payment within 30 days or within an agreed upon period after receipt of invoices, as required by Treasury Regulation 8.2.3.

(b) This constitutes a contravention of section 38(1)(f) of the PFMA which provides that the accounting officer must pay all money owing by the department within the prescribed or agreed period.

(c) An accounting officer commits an act of financial misconduct if she/he wilfully or negligently fails to comply with a requirement of section 38 of the PFMA.


That all relevant Accounting Officers submit a report to the Committee by 31 January 2020 on the reasons for non-payment of invoices within 30 days with sufficient particularity to enable the Committee to determine whether an act of financial misconduct was committed, the steps taken to address this audit finding and measures put in place to prevent a recurrence.

The following are interventions the department has designed to deal with the delays in the payment of invoices:

o The department issued a circular on settlement of payments within 30 days detailing measures to be undertaken to ensure compliance with Trea-sury Regulation 8.2.3.

o Responsibility Managers were instructed to en-sure that reasons for the delay in the payment of invoices within 30 days are documented on the payment voucher together with the relevant doc-umentation to support reasons provided.

o The department issued a circular on non-compli-ance with payment of invoices within 30 days.

o Financial Services at Head Office circulates a list of all invoices that were not paid within 30 days and Responsibility Managers are required to complete an exception report detailing all invoic-es that were not paid within 30 days together with reasons for not making payments timeously.

o Responsibility Managers were also instructed to implement consequence management processes to ensure that individuals are held accountable for invoices that are paid late without valid rea-sons.

o The issue of non-payment of invoices within 30 days was also discussed during the Audit Im-provement Workshops held for all four Regional Offices and Head Office.

o A report of invoices not paid within 30 days detailing the number and values of Invoices not paid per Responsibility is also tabled at Monthly Management Meetings.

The department embarked on a process to source an effective invoice tracking system that will assist the department as well as its suppliers to constantly track and monitor the process of payment of invoices. Train-ing is currently in progress at both Head Office and Regional Offices on how to use the system. Pilot will commence in February 2020 at Head Office. The sys-tem should be in full implementation by the beginning of April 2020.


PART C: GOVERNANCE

Resolution No.


62/2019 TRANSVERSAL RESOLUTION – COMMITMENTS ON AUDIT FINDINGS AND RELATED MATTERS

Noting that:

Accounting Officers of some departments have made commitments in the current year audit (2018/19) and in prior year audits to resolve audit findings and related matters such as transfer payments, procurement, supply chain management, expenditure management, IT, vacancies, annual financial statements and internal control deficiencies, some of which have not yet been resolved.


That the Accounting Officers of the relevant departments report to the Committee by 31January 2020 on the reasons for the commitments being unresolved, the steps taken to resolve the commitments and time frames for finalisation thereof.

Immovable Assets.

This commitment is unresolved however is in progress, with improvements each year.

In the 2017/2018 the AGSA concluded that the department did not recognise the value of all road infrastructure assets under construction as required by the MCS on Capital Assets and that the Accounting policy adopted by the department was inappropriate.

The department undertook the following interventions to ensure accurate reporting for the 2018/19 audit:

1. The department implemented a process where we collected all key data from our financial system (BAS) and Geographic Information System for verification with regards accurate financial disclosure, condition and status of road network as at year-end.

2. The Department of Transport was assigned custodial powers in terms of the KZN Land Administration and Immovable Asset Management Act. This was so the infrastructure network is reported in the most meaningful manner.

3. The department adjusted its accounting policy to be in line with the requirements

4. The department reported on the full value of the infrastructure network as at 31 March 2019.

In the 2018/2019 Audit, the AG was satisfied that the department had reported on all infrastructure assets as required and that the revised accounting policy was appropriated however, was unable to obtain sufficient appropriate audit evidence that immovable assets had been properly accounted for in the prior year.

The Auditor-General audited and was satisfied with the value of current year additions to immovable assets, however the department could not provide the requested 3,500 final payment certificates relating to the 160 roads selected within the remaining time in the audit. The department requested an extension to the audit deadline to allow for the documentation to be provided, however this request was not granted.


PART C: GOVERNANCE

Resolution No.


62/2019

(cont…)

Vukuzakhe Awards not approved by a BAC

In the 2017/2018 Audit, the AG had concluded that, Bids relating to Vukuzakhe awards were not adjudicated by a bid adjudication committee as required by Treasury Regulations 16A6.2(a).

The finding was repeated in the 2018/2019 financial year due to the finding only being finalised during the 2018/2019 financial year, with transactions already having taken place. Further the department engaged with the Provincial Treasury to try obtain exemption from the specified requirement to allow this key empowerment programme to proceed. However, the Provincial Treasury was not able to provide the department with the required exemption and as a result the department withdrew the Vukuzakhe Emerging Contractor Development Policy with effect from 17 July 2019 and referred it for review to ensure alignment with the procurement prescripts. The instruction further required the immediate hold on all advertising and award of Vukuzakhe bids.

61/2020 IRREGULAR EXPENDITURE – R3.4 BILLION IN 2018/19 AND CUMULATIVE R14.1 BILLION (RELATING TO TRANSVERSAL RESOLUTION 50/2019 AND 57/2019)

Noting that:

[1] The Department has completed investigations relating to 187 orders worth R1.7 billion, investigations relating to 33 orders worth R828.6 million are in progress and investigations for 16 065 orders worth R11.459 billion have not yet commenced.

[2] Cases worth R141.8 million have been submitted to Labour Relations for disciplinary action.

[3] The Department would have to source assistance in terms of capacity and expertise to conduct the investigations for the 16 065 orders that have not yet commenced.

• The department has completed a further 200 cases with a value of R 2,857,654,279.26, except for the disciplinary action. There are 581 cases with a value of R772,972,731 that are currently in progress and these will be completed by 31 October 2020.

For irregular expenditure identified in the 2019/2020 financial year, the department’s Internal Compliance Unit has commenced with investigating 238 cases with a value of R140 million.

The Department has compiled bid specifications for the balance of the irregular expenditure cases. The bid was advertised in the last week of March 2020, however with COVID 19, this was re-advertised at the end of July 2020 with a closing date of 8 September 2020. The bid is for a period of 3 years, as this is how long it is anticipated to get to a stage where the department is investigating current cases of irregular expenditure.


Resolution No.


61/2020 (cont…)

[4] The Department has not yet submitted its application for condonation of irregular expenditure to Provincial Treasury for condonation.

The committee resolves:

That Accounting Officer report to the Committee by 30 April 2020 on progress made in:

a) completion of investigations underway and commencement of investigations not yet commenced, together with time frames for the anticipated completion of the investigations;

b) disciplinary proceedings; and

c) the submission of the application for condonation of irregular expenditure to Provincial Treasury.

(d) The department has identified 108 officials against whom disciplinary action must be taken. Disciplinary letters have been sent to 30 officials. 3 officials have signed and returned the disciplinary letters. Consultations have been held with the Provincial Treasury and the Office of the Premier to provide guidance to the department on the disciplinary process to be followed, considering the fact that there are old cases and the number of cases that have been identified as irregular expenditure.

c) The department has made 5 submissions to the Provincial Treasury for condonation. This consisted of 65 cases with a value of R1,723,413,217. Of this value Treasury condoned R1,137,740,762 (18 Cases) and this was recorded in the AFS. The department is currently in discussions with the Provincial Treasury to address their queries.

PART C: GOVERNANCE


Resolution No.


62/2020 FRUITLESS AND WASTEFUL EXPENDITURE – R900 000 IN 2018/19 (RELATING TO TRANSVERSAL RESOLUTION 52/2019 AND 57/2019)

Noting that:

Investigations relating to fruitless and wasteful expenditure are still in progress.


That the Accounting Officer report to the Committee by 30 April 2020 on progress made in concluding the investigations, as well as steps taken to implement consequence management, including recovery of losses from officials responsible and disciplinary action

The Fruitless and Wasteful Expenditure balance of R900,000

Category Value Current Status

No Show Ac-commodation

R25,000 The investigation of this expenditure was delayed due to the official investigating these transactions passing away and then the official to whom the investigation was transferred to resigning, The component responsible for investigating this is currently assisting co-ordinate the provision of information and responses to the Auditor-General, the transactions will be investigated in October after the completion of the AG audit

Printing of 2017/2018 Annual Report

R160,000 The response to the initial investigation has required additional information be sought

Construction of P318 (Phase 2)

R734,000 An amount of R310 117.05 was transferred to debts to be recovered from the service provider responsible for the delays.

The remainder of the amount being R310,000 relates to work stopped by business forums and should not be disclosed as wasteful expenditure.

R900,000

63/2020 FORENSIC INVESTIGATIONS (RELATING TO TRANSVERSAL RESOLUTION 54/2019)

Noting that:

The report relating to FR 51/2014 recommends that disciplinary action be instituted by the Department but the report has not yet been presented to the Department.


That the Accounting Officer follow up on the report and submit a progress report to the Committee by 30 April 2020 on steps taken to implement the recommendations.

The Department still awaits the Provincial Internal Audit and Assurance Service to table the report. Follow-ups were made with the Provincial Treasury, however the process was interrupted and disturbed by the national lockdown as a result of COVID-19.

PART C: GOVERNANCE


Resolution No.


64/2020 RISK MANAGEMENT (RELATING TO TRANSVERSAL RESOLUTION 56/2019

Noting that:

The Department has identified 20 top risks and 45 mitigation plans to address these risks. Eleven of the plans have been implemented, 32 are in progress and 2 have not yet commenced.


That the Accounting Officer submit its updated Risk Register to the Committee by the 30 April 2020, indicating progress made in addressing all critical and major risks.

The Department conducts the risk assessments regularly. The table below depict progress made in addressing all critical and major risks.

No. Risk Magnitude

Period/ QTR

No. of Identified

Risks


No. of Completed

Action Plans


1. Critical Q1 5 17 5 12

Q2 04 11 0 11

Q3 02 07 01 06

Q4 02 07 01 06

2. Major Q1 7 19 6 13

Q2 12 29 10 19

Q3 07 18 06 12

Q4 05 13 6 7

81/2020 INTER-DEPARTMENTAL CLAIMS OWING TO PUBLIC WORKS: R293.109 MILLION AS AT 31 DECEMBER 2019

Noting:

[1] That inter-departmental claims balances owing by Provincial Departments to Public Works as at 31 December 2019 amounted to R293.109 million.

[2] R79.9 million of that amount was 120 days or more overdue, R9.265 million was 90 days or older, R77.111 million was 60 days or older and R26.414 million was 30 days or older.

.

The department pays Public Works on time on a monthly basis for all current invoices.

There are however a few invoices that were part paid over 5 years ago, totalling R7 330 701.59, that reflect as outstanding on the Public Works statement. These invoices were part paid as there were queries with regards to the invoice amount at the time. The department is in consultation with Public Works with regards to this amount and is seeking an amicable solution to the long outstanding invoices

PART C: GOVERNANCE


Resolution No.


81/2020

(cont..)

[3] The delays in settlement of claims by client departments has resulted in an adverse audit finding against Public Works on material impairment of claims recoverable.


That the Accounting Officer of each Department report to the Committee by 30 April 2020 on:

a) the amount owing to Public Works as at 31 March 2020, together with an age analysis;

b) the reasons for the delays and defaults in the settlement of claims payable to Public Works; and

c) measures implemented to ensure that payment of invoices will be made to Public Works within 30 days as required by Treasury Regulation 8.2.3

PART C: GOVERNANCE


PART C: GOVERNANCE

REPORT OF THE AUDIT & RISK COMMITTEE ONVOTE 12 – TRANSPORT

The Committee reports that it has complied with its responsibilities arising from the Public Finance Management Act, No.1 of 1999 (PFMA), Treasury Regulations 3.1, including all other related prescripts, and is pleased to present its report for the financial year ended 31 March 2020.

The Provincial Audit and Risk Committee (PARC) is the shared audit and risk committee for the provincial departments, and is further sub-divided into three Cluster Audit & Risk Committees (CARC’s) that provide oversight of key functions to the KZN Provincial Government Departments. The Department of Transport is served by the Economic Sector and Infrastructure Development (ESID) Cluster Audit & Risk Committee.

The Committee has adopted appropriate formal terms of reference contained in its Audit and Risk Committee Charter and has regulated its affairs in compliance with this charter; and reports that it has discharged all of its responsibilities as contained therein.

1. Audit Committee Members and Attendance

The PARC and ESID CARC consists of the members listed hereunder who have met as reflected below, in line with the approved terms of reference.

# Name of Member PARC Meetings Attended

ESID CARC Meetings Attended

1. Mr S Simelane (Acting Chairman of PARC and Economic CARC) 10 of 10 4 of 42 Mr V Ramphal 10 of 10 4 of 43. Mr M Tarr 10 of 10 4 of 44. Mr P Christianson 9 of 10 N/A*5. Ms T Njozela 9 of 10 N/A*6. Mr D O’Connor 10 of 10 N/A*7. Ms N Sithole (resigned July 2019) 3 of 10 N/A*

* refers to PARC members who did not serve on the ESID CARC

2. The Effectiveness of Internal Controls

The Committee has reviewed the reports of the Provincial Internal Audit Service (PIAS), the Audit Report on the Annual Financial Statements and Management Report of the Auditor General of South Africa (AGSA) and has noted with concern, the weaknesses in controls in the following areas:

• Expenditure Management – Irregular Expenditure• Revenue Management – Accrued departmental revenue• Procurement and contract management• Human Resource Management• Performance Information

The Committee noted with concern the number of control deficiencies identified by the auditors, both internal and external. Although management interventions on certain control weaknesses were considered by the Committee, the Accounting Officer is urged to urgently implement strategies that will prevent any further regression on audit outcomes.


PART C: GOVERNANCE

3. Effectiveness of Internal Audit

The PIAS performed effectively during the period under review. The Committee has, through the PARC and CARC monitoring processes assessed the both the PIAS and its audit reports on the assessment of the adequacy and effectiveness of controls designed to mitigate the risks associated with the operational and strategic activities of the Department. These audit reports were tabled at quarterly CARC meetings.

The PIAS planned to conduct twenty (20) audit assignments for the period under review, of which thirteen (13) were finalized, two (2) were cancelled, two (2) were rolled over and three (3) were carried over to the 2020/21 financial year with the approval of the Audit Committee.

The PIAS performed effectively during the period under review; notwithstanding concerns raised by the Committee in respect of the financial and human resource limitations imposed upon the unit. The Committee will monitor the progress made by the PIAS against its operational plans in order to ensure that it continues to fulfil its mandate and add value to the department.

4. Risk Management

The responsibilities of the Committee with respect to risk management are formally defined in its Charter. For the period under review, the Committee’s responsibilities have been focused, amongst other things, on the quarterly review of the Department’s risk register and monitoring progress against the Risk Management Operational Plan.

As at the end of the 19/20 financial year, the Department’s risk register status was as follows:

Risk Grouping Total Critical Major Moderate Minor Insignificant

Number of Identified Risks 2 5 30 20 24 81Number of Identified Action Plans 7 13 63 46 47 176

Number of Completed Action Plans 1 6 25 30 31 93

No. of Completed Action Plans as a Percentage (%)

14% 46% 40% 65% 66% 53%

The Committee notes, with concern, the slow progress made by the Department on the implementation of its risk mitigation plans with a 53% completion rate. The Department is urged to 1) implement the outstanding risk mitigation plans, particularly for risks classified as critical and major; and 2) update the Department’s risk register with strategic risks which should be identified and assessed as part of the 2020/21 strategic planning and the 2020/21 annual planning processes.

Although the Department is commended for having a functional risk management committee which is convened on a regular basis, and having made significant progress in completing improvement plans relating to Fraud Prevention; the Committee is, however, concerned about the slow progress being made on the implementation of Occupational Health and Safety improvement plans and the non-existence of a Business Continuity Plan.

With the current focus being on COVID 19 pandemic, the Department is urged to ensure continued compliance with prescribed control measures, including development of the Business Continuity Plan so that service delivery interruptions could be minimised.


PART C: GOVERNANCE

5. Quality of in year management and monthly/quarterly reports

The Committee was satisfied with the content and quality of quarterly reports in respect of in year management and quarterly performance prepared and issued by the Accounting Officer of the Department submitted in terms of the PFMA and the Division of Revenue Act during the year under review.

However, the Committee noted with concern the material underspending of the budget for transport infrastructure by R1.46 billion due to delays in infrastructure projects.

6. Evaluation of Financial Statements

The Committee has:

• Reviewed and discussed the Annual Financial Statements, including the audit report, with the Auditor General and the Accounting Officer;

• Reviewed the Auditor General’s Management Report;

• Reviewed the Department’s processes for compliance with legal and regulatory provisions, where concerns have been noted with procurement and contract management and the failure to record the full extent of irregular expenditure in the notes to the financial statements, as required by section 40(3)(b)(i) of the PFMA; and

• Reviewed the qualified conclusion on accrued departmental revenue resulting from the audit of the Department. The Committee notes with concern that the status of the accounting records made it impossible for the Auditor General to determine whether the accrued departmental revenue for the current year had been properly accounted for.

• Reviewed and noted the emphasis of matter on immovable tangible capital assets and noted that completed roads amounting to R59,6 billion (2018/19: R57,6 billion) were removed from the financial statements. The department adopted a phased in approach relating to disclosure of completed roads and related infrastructure in accordance with paragraph 4.4: Modified Cash Standard – Accounting and reporting for immovable assets.

7. Forensic Investigations

During the period under review, the Committee noted that there were twenty two (22) forensic investigations from 1 April 2019 to 31 March 2020, all relating to alleged supply chain management and procurement, irregular payments, irregularities and mismanagement of funds and human resource irregularities which the department has referred to the PIAS for investigation.

• From the twenty two (22) investigations, ten (10) of these investigations relating to Phase 1 were completed and twelve (12) are in-progress.

• All the ten (10) matters completed had disciplinary actions recommended.

• The Committee further noted that eight (8) matters are currently under criminal investigation by the South African Police Service (SAPS), one matter was finalised and one (1) more matter was withdrawn by SAPS.

The Department and the PIAS are urged to promptly finalize the outstanding investigations, and work together to implement recommendations made in the finalised investigations.


PART C: GOVERNANCE

8. Auditor-General’s Report

The Committee has monitored the implementation of corrective action plans to address the audit issues raised by the Auditor General in the prior year. The Committee has met with the Auditor General of South Africa to discuss and evaluate the major issues that emanated from the current regulatory audit. The Committee will ensure that corrective actions in respect of the detailed findings emanating from the current regulatory audit continue to be monitored on a quarterly basis through the CARC processes.

The Committee concurs and accepts the conclusion of the Auditor General’s qualified opinion on the Annual Financial Statements, and is of the opinion that the Audited Annual Financial Statements be accepted and read together with the report of the Auditor General.

9. Appreciation

The Committee wishes to express its appreciation to the Management of the Department, the Auditor General of South Africa, and the Provincial Internal Audit Services for the co-operation and support they have provided to enable us to compile this report.

______________________

Mr. S. SimelaneActing Chairman: Provincial Audit and Risk Committee

30 November 2020

9. Appreciation

The Committee wishes to express its appreciation to the Management of the Department, the

Auditor General of South Africa, and the Provincial Internal Audit Services for the co-operation

and support they have provided to enable us to compile this report.

______________________

Mr S Simelane

Acting Chairman: Provincial Audit and Risk Committee

30 November 2020


PART C: GOVERNANCE



HUMAN RESOURCEPART D:


PART D: HUMAN RESOURCES MANAGEMENT The information contained in this part of the annual report has been prescribed by the Minister of PublicService and Administration for all departments in the public service.

INTRODUCTION

• The status of Human Resources in the department

The Human Resource Practices Directorate is responsible for the provision of efficient human resource practices and administration services.

• Human Resource Priorities for the year

The filling of identified critical and funded vacancies remained a key priority, because it is critical to improving service delivery.

• Workforce Planning and Strategies to Attract a Skilled Workforce

The department continues to implement the Occupational Specific Dispensation (OSD) for engineers and related professionals to assist in managing career paths of existing employees in these occupations. This is also manifested through the provision of grade and accelerated grade progression, such as automatic promotion to a higher grade after serving the required number of years.

The Human Resource Development Directorate contributes towards the achievement of the Provincial Growth and Development Strategy and Plan through the implementation of Adult Education and Training, Learnerships, Apprenticeships, Internships, Skills Programmes, Bursaries, Work-integrated Learning. Through these learning programmes HRD has been targeting the vulnerable groups which is youth, African females, and Persons with Disabilities.

• Employee Performance Management

Employee Performance Management is aimed at planning, managing and improving employee performance. The aim of performance management is to optimise every employee’s output in terms of quality and quantity, thereby improving the department’s overall performance and service delivery. The primary orientation of performance management is to be developmental while allowing for effective response to consistently inadequate performance and for recognising outstanding performance. Chapter 4 of the Senior Management Service (SMS) Handbook provides a framework for the management of performance for employees on remuneration band A to D (salary levels 13 to 16).

The departmental EPMDS Policy provides a standardised framework for employee performance management on salary levels 1 to 12, which is inclusive of employees covered by an OSD and employees in elementary occupations in the department. It shares similarities and must be linked with the SMS PMDS, as is a distinct policy framework and system. Employee performance management is not applicable to departmental, component or team performance management or assessment but is linked to individual performance, thus promoting individual growth and development, as well as impacting on career-pathing.

• Challenges

The department faces a challenge of receiving high numbers of applications for advertised posts which delay the filling thereof. However, there is also a lack/shortage of applications from Persons with Disabilities (PWDs) to be appointed on the Developmental Programmes.

PART D: HUMAN RESOURCES


• Future Human Resource Plans

The department will continue to focus on the challenge of filling critical, vacant and funded posts in the new performance year, as well as to achieve the employee equity targets. It will also focus on improving the time taken to fill vacant and funded posts. The filling of vacant, critical and funded posts remains a priority.

The Department will continue to advertise within the disability units at the institutions of higher learning in order to target Persons with Disabilities. The Department will also advertise Developmental Programmes on the Thisability Newspaper targeting People with Disabilities.

HUMAN RESOURCES OVERSIGHT STATISTICS

The department must provide the following key information on its human resources, and all the financial amounts must agree with the amounts disclosed in the annual financial statements. It must also provide reasons for any variances.

3.1 Personnel Related Expenditure

The following tables summarise the final, audited personnel related expenditure by programme and by salary bands. In particular, it provides an indication of the amount spent on personnel, salaries, overtime, homeowner’s allowances and medical aid.

Table 3.1.1 Personnel expenditure by programme for the period 1 April 2019 and 31 March 2020

Programme Total expenditure (R’000)

Personnel expenditure (R’000)

Training expenditure

(R’000)

Professional and Special Services expenditure (R’000)

Personnel expenditure as a % of total expenditure

Average personnel cost per employee (R’000)

Administration 441 451.00 155 620.00 0.00 0.00 35.30 252.00


29 593.00 10 104.00 0.00 0.00 34.10 14.00


6 139 406.00 653 401.00 0.00 0.00 10.60 14.00


1 812 121.00 39 239.00 0.00 0.00 2.20 74.00

Transport Regulation

926 398.00 645 362.00 0.00 0.00 69.70 398.00

Z=Total as on Financial Systems (BAS)

9 348 969.00 1 503 726.00 0.00 0.00 151.90 752.00



Table 3.1.2 Personnel costs by salary band for the period 1 April 2019 and 31 March 2020

Salary band Personnel expenditure

(R’000)

% of total personnel cost

No. of employees Average personnel cost per employee (R’000)

Lower skilled (Levels 1-2) 64 092.00 3.30 333 192 468.00

Skilled (Levels 3-5) 374 522.00 19.40 1 348 277 835.00

Highly skilled production (Levels 6-8) 660 975.00 34.20 1 368 483 169.00

Highly skilled supervision (Levels 9-12) 230 426.00 11.90 284 811 359.00

Senior management (Levels 13-16) 64 092.00 3.30 333 192 468.00

Contract (Levels 1-2) 0.00 0.00 0 0.00

Contract (Levels 13-16) 3 386.00 0.20 2 1 693 000.00

Contract (Levels 3-5) 48 427.00 2.50 38 1 274 395.00

Contract (Levels 6-8) 71 183.00 3.70 174 1 935 475.00

Contract (Levels 9-12) 21 230.00 1.10 42 1 935 475.00

Contract Other 17 407.00 0.90 371 46 919.00

Periodical Remunerations 16 199.00 0.80 846 19 125.00

Abnormal Appointment 376 739.00 19.50 43 848 1 935 475.00

TOTAL 1 898 226.00 98.10 48 716 1 935 475.00

Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the period 1 April 2019 and 31 March 2020

Programme Salaries Overtime Home Owners Allowance

Medical Aid

Amount (R’000

Salaries as a % of personnel costs

Amount (R’000)

Overtime as a % of personnel costs

Amount (R’000)

HOA as a % of personnel costs

Amount (R’000)

Medical aid as a % of personnel costs

2. Road infrastructure

1 627.00 78.10 0.00 0.00 0.00 0.00 105.00 5.00

5. Community based prog

2 005.00 76.40 0.00 0.00 66.00 2.50 137.00 5.20

Administration 133 435.00 81.00 2 024.00 1.20 4 036.00 2.50 7 775.00 4.70


13 781.00 83.10 0.00 0.00 177.00 1.10 486.00 2.90


1 627.00 78.10 0.00 0.00 0.00 0.00 105.00 5.00


46 721.00 83.70 48.00 0.10 853.00 1.50 1 944.00 3.50

Transport Regulation

427 694.00 65.40 96 517.00 14.80 21 917.00 3.40 46 618.00

7.10

TOTAL 1 491 980.00 396.90 120 147.00 6.20 54 753.00 2.80 93 731.00

4.80



Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the period 1 April 2019 and 31 March 2020

Salary band Salaries Overtime Home Owners Allowance Medical Aid

Amount (R’000

Salaries as a % of personnel costs

Amount (R’000)

Overtime as a % of personnel costs

Amount (R’000)

HOA as a % of personnel costs

Amount (R’000)

Medical aid as a % of personnel costs

Lower skilled (Levels 1-2)

41 858.00 64.90 1 839.00 2.90 6 358.00 9.90 6 662.00 10.30

Skilled

(Levels 3-5)

267 549.00 71.10 13 385.00 3.60 22 817.00 6.10 32 444.00 8.60

Highly skilled production (Levels 6-8)

443 783.00 66.20 92 256.00 13.80 21 993.00 3.30 45 237.00 6.70

Highly skilled supervision (Levels 9-12)

186 561.00 76.30 10 080.00 4.10 3 313.00 1.40 8 567.00 3.50

Senior management (Levels 13-16)

43 100.00 84.30 0.00 0.00 283.00 0.60 808.00 1.60

Contract

(Levels 1-2)

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Contract

(Levels 3-5)

13 302.00 97.00 108.00 0.80 39.00 0.30 56.00 0.40

Contract

(Levels 6-8)

68 999.00 94.30 1 945.00 2.70 17.00 0.00 53.00 0.10

Contract

(Levels 9-12)

20 548.00 91.20 17.00 0.10 0.00 0.00 105.00 0.50

Contract

(Levels 13-16)

3 009.00 82.50 0.00 0.00 0.00 0.00 42.00 1.20

Contract Other

16 889.00 96.90 516.00 3.00 0.00 0.00 0.00 0.00

Periodical Re-munerations

13 294.00 80.20 0.00 0.00 0.00 0.00 0.00 0.00

Abnormal Appointment

376 720.00 98.80 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL 1 495 611.00 77.30 120 147.00 6.20 54 820.00 2.80 93 974.00 4.90



EMPLOYMENT AND VACANCIES

The tables in this section summarise the position with regard to employment and vacancies. They also summarise the number of posts in the establishment, the number of employees, the vacancy rate, and whether there are any staff that are “additional to the establishment” or ATE. This information is presented in terms of three key variables: programme, salary band and critical occupations (see definition in notes below).

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

Table 3.2.1 Employment and vacancies by programme as on 31 March 2020

Programme Number of posts on approved establishment

Number of posts filled

Vacancy Rate Number of employees additional to the establishment

Administration 737 608 17.50 130

Community Based Programme 23 15 34.80 0

Transport Infrastructure 2 448 1 935 21.00 279

Transport Operations 98 77 21.40 5

Transport Regulation 1 604 1 380 14.00 2

TOTAL 4 920 4 022 18.30 416

Table 3.2.2 Employment and vacancies by salary band as on 31 March 2020

Salary band Number of posts on approved establishment

Number of posts filled Vacancy Rate Number of employees additional to the establishment

Lower skilled (Levels 1-2), Permanent

401 333 17.00 0

Skilled (Levels 3-5), Permanent

1 805 1 348 25.30 0

Highly skilled production (Levels 6-8), Permanent

1 657 1 368 17.40 0

Highly skilled supervision (Levels 9-12), Permanent

358 284 20.70 0

Senior management (Levels 13-16), Permanent

48 38 20.80 0

Contract Other Permanent 371 371 0.00 173

Contract (Levels 3-5), Permanent

62 62 0.00 33


174 174 0.00 170


42 42 0.00 40


2 2 0.00 0

TOTAL 4 920 4 022 18.30 416



Table 3.2.3 Employment and vacancies by critical occupations as on 31 March 2020

Critical occupation Number of posts on approved establishment

Number of posts filled

Vacancy Rate Number of employees additional to the establishment

Administrative related, permanent 190 144 24.20 3

All artisans in the building metal machinery etc., permanent

213 158 25.80 68

Artisan project and related superintendents, permanent

25 18 28.00 0

Auxiliary and related workers, permanent

33 28 15.20 0

Building and other property caretakers, permanent

11 4 63.60 0

Bus and heavy vehicle drivers, permanent

9 3 66.70 1

Cartographers and surveyors, permanent 1 1 0.00 1

Cartographic surveying and related technicians, permanent

9 9 0.00 1

Civil engineering technicians, permanent 294 260 11.60 197

Cleaners in offices workshops hospitals etc., permanent

122 100 18.00 0

Client inform clerks(switchb recept inform clerks), permanent

29 23 20.70 0

Communication and information related, permanent

5 2 60.00 0

Engineering sciences related, permanent 20 15 25.00 0

Engineers and related professionals, permanent

69 58 15.90 4

Finance and economics related, permanent

5 4 20.00 0

Financial and related professionals, permanent

14 9 35.70 1

Financial clerks and credit controllers, permanent

18 8 55.60 0

Food services aids and waiters, permanent

19 18 5.30 0

Head of department/chief executive officer, permanent

1 1 0.00 0

Household and laundry workers, permanent

1 1 0.00 0

Human resources & organisat developm & relate prof, permanent

27 23 14.80 0

Human resources clerks, permanent 91 72 20.90 0

Human resources related, permanent 15 13 13.30 0

Language practitioners interpreters & other commun, permanent

9 8 11.10 0

Legal related, permanent 4 3 25.00 0



Librarians and related professionals, permanent

1 1 0.00 0

Library mail and related clerks, permanent

2 2 0.00 0

Light vehicle drivers, permanent 9 3 66.70 0

Logistical support personnel, permanent 1 1 0.00 0

Mechanical engineering thechnicians, permanent

1 1 0.00 1

Messengers porters and deliverers, permanent

82 50 39.00 0

Motor vehicle drivers, permanent 397 300 24.40 0

Other administrat & related clerks and organisers, permanent

1 277 1 096 14.20 136

Other administrative policy and related officers, permanent

243 197 18.90 1

Other information technology personnel., permanent

2 1 50.00 0

Other occupations, permanent 1 1 0.00 0

Printing planners and production controllers, permanent

1 1 0.00 0

Regulatory inspectors, permanent 777 688 11.50 0

Road superintendents, permanent 13 11 15.40 0

Road trade workers., permanent 154 126 18.20 0

Road workers, permanent 502 396 21.10 0

Safety health and quality inspectors, permanent

2 2 0.00 0

Secretaries & other keyboard operating clerks, permanent

38 29 23.70 1

Security guards, permanent 33 23 30.30 0

Security officers, permanent 5 5 0.00 0

Senior managers, permanent 46 36 21.70 0

Trade labourers, permanent 99 69 30.30 1

TOTAL 4 920 4 022 18.30 416

NOTES

The CORE classification, as prescribed by the DPSA, should be used for completion of this table.

Critical occupations are defined as occupations or sub-categories within an occupation in which there is a scarcity of qualified and experienced persons currently or anticipated in the future, either because such skilled persons are not available or they are available but do not meet the applicable employment criteria; for which persons require advanced knowledge in a specified subject area or science or learning field and such knowledge is acquired by a prolonged course or study and/or specialised instruction; where the inherent nature of the occupation requires consistent exercise of discretion and is predominantly intellectual in nature; and in respect of which a department experiences a high degree of difficulty to recruit or retain the services of employees.



FILLING OF SMS POSTS

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

Table 3.3.1 SMS post information as on 31 March 2020

SMS Level Total number of funded SMS posts

Total number of SMS posts filled

% of SMS posts filled

Total number of SMS posts vacant

% of SMS posts vacant

Head of Department 1 1 100% 0 0

Salary Level 15 4 4 100% 0 0

Salary Level 14 10 8 80% 2 20

Salary Level 13 34 26 76% 8 24

Total 49 39 79.59% 10 20.41%

Table 3.3.2 SMS post information as on 30 September 2020

SMS Level Total number of funded SMS posts

Total number of SMS posts filled

% of SMS posts filled

Total number of SMS posts vacant

% of SMS posts vacant

Head of Department 1 1 100% 0 0

Salary Level 15 4 4 100% 0 0

Salary Level 14 10 8 80% 2 20

Salary Level 13 34 26 76% 8 24

Total 49 39 79.59% 10 20.41%

Table 3.3.3 Advertising and filling of SMS posts for the period 1 April 2019 and 31 March 2020

SMS Level Advertising Filling of Posts

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

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

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

Director-General/ Head of Department

0 0 0

Salary Level 16 0 0 0




Total 0 0 0



Table 3.3.4 Reasons for not having complied with the filling of funded vacant SMS posts i.e. those advertised within 6 months and filled within 12 months after becoming vacant for the period 1 April 2019 and 31 March 2020

Reasons for vacancies not advertised within six monthsChief Director: Road Safety and Traffic Management: The post had to be re-advertised due to no suitable candidate found during the selection process.

Director: Legal Services: The post had to be re-advertised due to a Directive from the Office of the Premier to re-advertise posts.

Reasons for vacancies not filled within twelve monthsAs per above

Notes

In terms of the Public Service Regulations Chapter 1, Part VII C.1A.3, departments must indicate good cause or reason for not having complied with the filling of SMS posts within the prescribed timeframes.

Table 3.3.5 Disciplinary steps taken for not complying with the prescribed timeframes for filling SMS posts within 12 months for the period 1 April 2019 and 31 March 2020

Disciplinary steps takenNone

Notes

In terms of the Public Service Regulations Chapter 1, Part VII C.1A.2, departments must indicate good cause or reason for not having complied with the filling of SMS posts within the prescribed timeframes. In the event of non-compliance with this regulation, the relevant executive authority or head of department must take appropriate disciplinary steps in terms of section 16A(1) or (2) of the Public Service Act.

JOB EVALUATION

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

Table 3.4.1 Job Evaluation by Salary band for the period 1 April 2019 and 31 March 2020


Number of Jobs Evaluated

% of posts evaluated by salary bands

Posts Upgraded Posts downgradedNumber % of posts

evaluatedNumber % of posts

evaluated

01 Lower Skilled (Levels 1-2) 401.00 0 0 0 0 0 0

02 Skilled (Levels 3-5) 1 805.00 0 0 2 100.00 0 0

03 Highly Skilled Production (Levels 6-8)

1 657.00 0 0 0 0 0 0

04 Highly Skilled Supervision (Levels 9-12)

358.00 0 0 0 0 0 0

05 Senior Management Service Band A

33.00 0 0 0 0 0 0

06 Senior Management Service Band B

10.00 0 0 0 0 0 0




Number of Jobs Evaluated

% of posts evaluated by salary bands

Posts Upgraded Posts downgradedNumber % of posts

evaluatedNumber % of posts

evaluated

07 Senior Management Service Band C

4.00 0 0 0 0 0 0

08 Senior Management Service Band D

1.00 0 0 0 0 0 0

09 Other 371.00 0 0 0 0 0 0

11 Contract (Levels 3-5) 62.00 0 0 0 0 0 0

12 Contract (Levels 6-8) 174.00 0 0 0 0 0 0

13 Contract (Levels 9-12) 42.00 0 0 0 0 0 0

14 Contract Band A 1.00 0 0 0 0 0 0

17 Contract Band D 1.00 0 0 0 0 0 0

TOTAL 4 920.00 0 0 2 100 0 0

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

Table 3.4.2 Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2019 and 31 March 2020

Gender African Asian Coloured White TotalFemale 0 0 0 0 0

Male 0 0 0 0 0

Total 0 0 0 0 0

Employees with a disability 0

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

Table 3.4.3 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2019 and 31 March 2020

Occupation Number of employees

Job evaluation level Remuneration level Reason for deviation

- 0 - - -

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

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



Table 3.4.4 Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2019 and 31 March 2020

Gender African Asian Coloured White Total- 0 0 0 0 0- 0 0 0 0 0

Employees with a disability 0

NOTES

If there were no cases where the salary levels were higher than those determined by job evaluation, keep the heading and replace the table with the following:

Total number of Employees whose salaries exceeded the grades determine by job evaluation 0

EMPLOYMENT CHANGES

This section provides information on changes in employment over the financial year. Turnover rates provide an indication of trends in the employment profile of the department. The following tables provide a summary of turnover rates by salary band and critical occupations (see definition in notes below).

Table 3.5.1 Annual turnover rates by salary band for the period 1 April 2019 and 31 March 2020

Salary band Number of employees at beginning of period-April 2015

Appointments and transfers into the department

Terminations and transfers out of the department

Turnover rate

01 Lower Skilled (Levels 1-2) Permanent 337 1 3 0.90

02 Skilled (Levels 3-5) Permanent 1 414 7 72 5.10

03 Highly Skilled Production (Levels 6-8) Permanent 1 416 20 69 4.90

04 Highly Skilled Supervision (Levels 9-12) Permanent 292 1 10 3.40

05 Senior Management Service Band A Permanent 24 1 0 0.00

06 Senior Management Service Band B Permanent 8 1 0 0.00

07 Senior Management Service Band C Permanent 4 0 0 0.00

08 Senior Management Service Band D Permanent 1 1 1 100.00

09 Other Permanent 224 309 135 60.30

10 Contract (Levels 1-2) Permanent 0 0 0 0

11 Contract (Levels 3-5) Permanent 37 39 11 29.70



14 Contract Band A Permanent 1 3 3 300.00

17 Contract Band D Permanent 1 0 0 0.00

TOTAL 3 967 411 328.00 8.30



Table 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2019 and 31 March 2020

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

Appointments and transfers into the department

Terminations and transfers out of the department

Turnover rate

ADMINISTRATIVE RELATED Permanent 147 4.00 6 4.10

ALL ARTISANS IN THE BUILDING METAL MACHINERY ETC. Permanent

97 66.00 5 5.20

ARTISAN PROJECT AND RELATED SUPERINTENDENTS Permanent

18 0 0 0

AUXILIARY AND RELATED WORKERS Permanent 31 0 3 9.70

BUILDING AND OTHER PROPERTY CARETAKERS Permanent

5 0 1.00 20.00

BUS AND HEAVY VEHICLE DRIVERS Permanent 3 0 0.00 0.00

CARTOGRAPHERS AND SURVEYORS Permanent 1 1 1.00 100.00

CARTOGRAPHIC SURVEYING AND RELATED TECHNICIANS Permanent

6 4 1.00 16.70

CIVIL ENGINEERING TECHNICIANS Permanent 252 40 32.00 12.70

CLEANERS IN OFFICES WORKSHOPS HOSPITALS ETC. Permanent

105 0 5.00 4.80

CLIENT INFORM CLERKS(SWITCHB RECEPT INFORM CLERKS) Permanent

25 0 2.00 8.00

COMMUNICATION AND INFORMATION RELATED Permanent

4 0 2.00 50.00

ENGINEERING SCIENCES RELATED Permanent 15 0 0.00 0.00

ENGINEERS AND RELATED PROFESSIONALS Permanent

55 4 1.00 1.80

FINANCE AND ECONOMICS RELATED Permanent 4 0 0.00 0.00

FINANCIAL AND RELATED PROFESSIONALS Permanent

10 0 1.00 10.00

FINANCIAL CLERKS AND CREDIT CONTROLLERS Permanent

8 0 0.00 0.00

FOOD SERVICES AIDS AND WAITERS Permanent 17 1 0.00 0.00

HEAD OF DEPARTMENT/CHIEF EXECUTIVE OFFICER Permanent

1 0 0.00 0.00

HUMAN RESOURCES & ORGANISAT DEVELOPM & RELATE PROF Permanent

21 2 0.00 0.00

HUMAN RESOURCES CLERKS Permanent 75 2 4.00 5.30

HUMAN RESOURCES RELATED Permanent 13 0 0.00 0.00

LANGUAGE PRACTITIONERS INTERPRETERS & OTHER COMMUN Permanent

8 0 0.00 0.00

LEGAL RELATED Permanent 3 0 1.00 33.30

LIBRARIANS AND RELATED PROFESSIONALS Permanent

1 0 0.00 0.00

LIBRARY MAIL AND RELATED CLERKS Permanent 2 0 0.00 0.00

LIGHT VEHICLE DRIVERS Permanent 3 0 0.00 0.00

LOGISTICAL SUPPORT PERSONNEL Permanent 1 0 0.00 0.00

MECHANICAL ENGINEERING THECHNICIANS Permanent

1 0 0.00 0.00

MESSENGERS PORTERS AND DELIVERERS Permanent

54 0 4.00 7.40

MOTOR VEHICLE DRIVERS Permanent 309 0 9.00 2.90

OTHER ADMINISTRAT & RELATED CLERKS AND ORGANISERS Permanent

1 016 274 165.00 16.20

OTHER ADMINISTRATIVE POLICY AND RELATED OFFICERS Permanent

204 4 10.00 4.90



OTHER INFORMATION TECHNOLOGY PERSONNEL. Permanent

1 0 0.00 0.00

OTHER OCCUPATIONS Permanent 1 1 1.00 100.00

PRINTING PLANNERS AND PRODUCTION CONTROLLERS Permanent

1 0 0.00 0.00

REGULATORY INSPECTORS Permanent 710 0 23.00 3.20

ROAD SUPERINTENDENTS Permanent 12 0 1.00 8.30

ROAD TRADE WORKERS. Permanent 135 0 9.00 6.70

ROAD WORKERS Permanent 425 0 31.00 7.30

SAFETY HEALTH AND QUALITY INSPECTORS Permanent

2 0 0.00 0.00

SECRETARIES & OTHER KEYBOARD OPERATING CLERKS Permanent

29 1 2.00 6.90

SECURITY GUARDS Permanent 25 0 2.00 8.00

SECURITY OFFICERS Permanent 5 0 0.00 0.00

SENIOR MANAGERS Permanent 35 5 3.00 8.60

TRADE LABOURERS Permanent 71 1 3.00 4.20

TOTAL 3 967 411 328.00 8.30

NOTES


Critical occupations are defined as occupations or sub-categories within an occupation in which there is a scarcity of qualified and experienced persons currently or anticipated in the future, either because such skilled persons are not available or they are available but do not meet the applicable employment criteria; or which persons require advanced knowledge in a specified subject area or science or learning field and such knowledge is acquired by a prolonged course or study and/or specialised instruction; where the inherent nature of the occupation requires consistent exercise of discretion and is predominantly intellectual in nature; and in respect of which a department experiences a high degree of difficulty to recruit or retain the services of employees.

The table below identifies the major reasons why staff left the department.

Table 3.5.3 Reasons why staff left the department for the period 1 April 2019 and 31 March 2020

Termination Type Number % of Total Resignations

Death, Permanent 27 8.20

Resignation, Permanent 82 25.00

Expiry of contract, Permanent 148 45.10

Discharged due to ill health, Permanent 2 0.60

Dismissal-misconduct, Permanent 3 0.90

Retirement, Permanent 66 20.10

TOTAL 328 100.00

Total number of employees who left as a % of total employment (4066)

8



Table 3.5.4 Promotions by critical occupation for the period 1 April 2019 and 31 March 2020

Occupation Employment at Beginning of Period (April 2016)

Promotions to another Salary Level

Salary Level Promotions as a % of Employment

Progressions to another Notch within Salary Level

Notch progressions as a % of Employment

Administrative related 147 2 1.40 74 50.30

All artisans in the building metal machinery etc. 97 1 1.00 36 37.10

Artisan project and related superintendents 18 0 0 10 55.60

Auxiliary and related workers 31 0 0 21 67.70

Building and other property caretakers 5 0 0 1 20.

Bus and heavy vehicle drivers 3 0 0 1 33.30

Cartographers and surveyors 1 0 0 0 0

Cartographic surveying and related technicians 6 0 0 1 16.70

Civil engineering technicians 252 0 0 84 33.30

Cleaners in offices workshops hospitals etc. 105 0 0 57 54.30

Client inform clerks(switchb recept inform clerks) 25 0 0 8 32.00

Communication and information related 4 0 0 3 75

Engineering sciences related 15 0 0 2 13.30

Engineers and related professionals 55 0 0 35 63.60

Finance and economics related 4 0 0 2 50

Financial and related professionals 10 0 0 5 50

Financial clerks and credit controllers 8 0 0 6 75

Food services aids and waiters 17 0 0 8 47.10

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

Human resources & organisat developm & relate prof 21 1 4.80 12 57.10

Human resources clerks 75 0 0 60 80

Human resources related 13 0 0 8 61.50

Language practitioners interpreters & other commun 8 0 0 6 75

Legal related 3 0 0 1 33.30

Librarians and related professionals 1 0 0 1 100

Library mail and related clerks 2 0 0 1 50

Light vehicle drivers 3 0 0 2 66.70

Logistical support personnel 1 0 0 0 0

Mechanical engineering thechnicians 1 0 0 0 0

Messengers porters and deliverers 54 0 0 38 70.40

Motor vehicle drivers 309 0 0 255 82.50

Other administrat & related clerks and organisers 1 016 0 0 698 68.70

Other administrative policy and related officers 204 2 1 108 52.90

Other information technology personnel. 1 0 0 0 0

Other occupations 1 0 0 0 0

Printing planners and production controllers 1 0 0 0 0

Regulatory inspectors 710 1 0.10 553 77.90

Road superintendents 12 0 0 8 66.70

Road trade workers. 135 0 0 114 84.40

Road workers 425 0 0 374 88

Safety health and quality inspectors 2 0 0 1 50

Secretaries & other keyboard operating clerks 29 0 0 12 41.40

Security guards 25 0 0 21 84

Security officers 5 0 0 1 20



Senior managers 35 0 0 12 34.30

Trade labourers 71 0 0 61 85.90

TOTAL 3 967 7.00 0.20 2 701 68.10

Table 3.5.5 Promotions by salary band for the period 1 April 2019 and 31 March 2020

Salary Band Employees 1 April 2015

Promotions to another salary level

Salary bands promotions as a % of employees by salary level

Progressions to another notch within a salary level

Notch progression as a % of

employees by salary bands

01 Lower Skilled (Levels 1-2), Permanent 337 0 0 26 77.70

02 Skilled (Levels 3-5), Permanent 1 414 0 0 1 166 82.50

03 Highly Skilled Production (Levels 6-8), Permanent 1 416 5 0.40 898 63.40

04 Highly Skilled Supervision (Levels 9-12), Permanent 292 2 0.70 162 55.50

05 Senior Management (Levels 13-16), Permanent 37

0 0 13 35.10

09 Other, Permanent 224 0 0 140 62.50

10 Contract (Levels 1-2), Permanent 0 0 0 0 0

11 Contract (Levels 3-5), Permanent 37 0 0 9 24.30




TOTAL 3 967.00 7 0.20 2 701 68.10

EMPLOYMENT EQUITY Table 3.6.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March 2020

Occupational categoryMale Female

TotalAfrican Coloured Indian White African Coloured Indian White

01 - SENIOR OFFICIALS AND MANAGERS 15 0 1 3 18 0 1 0 38

02 - PROFESSIONALS 53 1 9 12 49 2 5 7 138

03 - TECHNICIANS AND ASSOCIATE PROFESSIONALS 247 13 35 23 261 7 33. 23 642

04 - CLERKS 226 8 36 9 786 24 91 50 1 230

05 - SERVICE SHOP AND MARKET SALES WORKERS 323 25 87 32 201 10 26 12 716

07 - CRAFT AND RELATED TRADE WORKERS 186 3 20 16 89 0 0 0 314

08 - PLANT AND MACHINE OPERATORS AND ASSEMBLERS 276 0 0 2 28 0 0 0 306

09 - LABOURERS AND RELATED WORKERS 354 1 2 2 277 1 1 0 638

UNKNOWN





TOTAL 1680 51 190 1709 44 157 1 910 92 4 022

Table 3.6.2 Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2020

Occupational bandMale Female


01 Top Management, Permanent 2 0 0 1 2 0 0 0 5

02 Senior Management, Permanent

12 0.00 1.00 2 17 0.00 1.00 0 33

03 Professionally qualified and experienced specialists and mid-management, Permanent

105 10.00 27.00 29 90 2.00 14.00 7 284

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

490 30.00 122.00 59 482 25.00 78.00 82 1 368

05 Semi-skilled and discretionary decision making, Permanent

668 10.00 31.00 7 555 17.00 57.00 3 1 348

06 Unskilled and defined decision making, Permanent

104

0

1.00 0 228 0 0 0 333

07 Not Available, Permanent 124

0

0.00 0 247 0 0 0 37

08 Contract (Top Management), Permanent

1

0

0.00 0 0. 0 0 0 1

09 Contract (Senior Management), Permanent

1

0

0.00 0 0 0 0 0 1

10 Contract (Professionally Qualified), Permanent

26

0

5.00 0 6.00 0 5 0 42

11 Contract (Skilled Technical), Permanent

10

0

3.00 1 62.00 0 1 0 174

12 Contract (Semi-Skilled), Permanent

40 1 0.00 0 20.00 0 1 0 62

TOTAL 1 680 51 190 99 1 709 44 157 92 4 022

Table 3.6.3 Recruitment for the period 1 April 2019 and 31 March 2020


TotalAfrican Coloured Indian White African Coloured Indian White01 Top Management, Permanent

1 0 0 0 0 0 0 0 1

02 senior management, permanent

1 0.00 0 0 1 0 0 0 2


0 0 0 0 1 0 0 0 1




11 1.00 0 0 8 0 0 0 20


3 0 0 0 4 0 0 0 7


1 0 0 0 0 0 0 0 1

07 Not Available, Permanent

100 0 0 0 209 0 0 0 309

10 Contract (Professionally qualified), Permanent

3 0 0 0 0 0 0 0 3

11 Contract (Skilled technical), Permanent

13 0 2 0 3 0 1. 0 19

12 Contract (Semi-skilled), Permanent

7 0 0 0 2 0 0 0 9

TOTAL 29 0 1 0 7 0 2 0 39Employees with disabilities

0 0 0 0 0 0 0 0 0

Table 3.6.4 Promotions for the period 1 April 2019 and 31 March 2020



01 Top Management, Permanent 0 0 0 0 0 0 0 0 0


3 0 1 0 9 0 0 0 13


65 3 14 13 57 1 7 4 164


359 18 76 26 339 14 40 31 903


588 10 25 6 473 14 46 4 1 166


93 0 0 0 169 0 0 0 262


0 0 0 0 0 0 0 0 0


5 0 2.00 0 1 0 0 0 8


31 0 1.00 0 11 0 0 0 43


2 0 0.00 0 6 0 1 0 9

TOTAL 1 205 31 119 0 1 146 29 94 39 2 708Employees with disabilities 15 0 1 1 14 0 14 1 34



Table 3.6.5 Terminations for the period 1 April 2019 and 31 March 2020



01 Top Management, Permanent 1. 0 0 0 0 0 0 0

1


0 0 0 0 0 0 0 0 0


3 0 1.00 0 6 0 0 0 10


26 2.00 1.00 3.00 20 1 3 13 69


50 0 0 0 20 0 1.00 1.00 72


0 0 0 0 2 0 0 0 3

07 Not Available, Permanent 24 0 0 0 111 0 0 0 135


3 0 0 0 0 0 0 0 0


1 0 0 0 1 0 0 0 3


18 0 0 0 4.00 0 0 0 2


6 0 2 0 2.00 0 1.00 0 22

TOTAL 132.00 2 4 3 166 1 6 14 11Employees with disabilities 0 0 0 0 0 0 0 0 0

Table 3.6.6 Disciplinary action for the period 1 April 2019 and 31 March 2020

Disciplinary actionMale Female


Final Written Warning 5 0 1 2 3 0 1 0 12

Dismissal 1 0 0 0 1 0 0 0 2

Case Withdrawn 2 0 0 0 0 0 0 0 2

GRAND TOTAL 8 0 1 2 4 0 1 0 16

Employees with disabilities

0 0 0 0 0 0 0 0 0

Table 3.6.7 Skills development for the period 1 April 2019 and 31 March 2020



Legislators, Senior Officials and Managers

1 0 0 0 1 0 0 1 3

Professionals 5 0 3 0 18 1 0 6 33

Technicians and Associate Professionals

109 0 8 12 121 2 3 5 260

Clerks 47 3 20 4 173 8 24 13 292





Service and Sales Workers 116 10 33 2 85 8 12 3 269

Craft and related trades workers 17 1 5 5 5 0 0 0 33

Plant and Machine Operators and Assemblers

106 0 0 1 13 0 0 0 120

Elementary Occupations 149 0 0 3 135 0 0 0 287

TOTAL 550 14 69 27 551 19 39 28 1297

Employees with disabilities 1 0 1 0 0 0 0 2 4

SIGNING OF PERFORMANCE AGREEMENTS BY SMS MEMBERS

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

Table 3.7.1 Signing of Performance Agreements by SMS members as on 31 May 2020 (Due date is 31 July 2020 - Extension granted by the MPSA due to the COVID-19 Pandemic)

SMS Level

Total number

of funded SMS posts

Total number of SMS

members

Total number of signed

performance agreements

Signed performance agreements as % of total number of SMS

members

Head of Department 1 0 0 0

Salary Level 15 4 4 0 0

Salary Level 14 10 8 1 12.50

Salary Level 13 34 26 11 42

Total 49 39 12 30

NOTES

In the event of a National or Provincial election occurring within the first three months of a financial year all members of the SMS must conclude and sign their performance agreements for that financial year within three months following the month in which the elections took place. For example if elections took place in April, the reporting date in the heading of the table above should change to 31 July 20ZZ.

Table 3.7.2 Reasons for not having concluded Performance agreements for all SMS members as on 31 May 2020 (Due date is 31 July 2020 - Extension granted by the MPSA due to the COVID-19 Pandemic)

Reasons NONE

NOTES

The reporting date in the heading of this table should be aligned with that of Table 3.7.1.

Table 3.7.3 Disciplinary steps taken against SMS members for not having concluded Performance agreements as on 31 May 2020 (31 July 2020 - Extension granted by the MPSA due to the COVID-19 Pandemic)

Reasons NONE



NOTES

The reporting date in the heading of this table should be aligned with that of Table 3.7.1.

Performance Rewards

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

Table 3.8.1 Performance Rewards by race, gender and disability for the period 1 April 2019 and 31 March 2020

Race and Gender

Beneficiary Profile Cost

Number of beneficiaries

Number of employees

% of total

within group

Cost (R’000)

Average cost per

employee

African, Female 451 1 691 26.70 8 665.93 19 173

African, Male 452 1 660 27.20 8 114.56 17 953

Asian, Female 71 153 46.40 1 647.76 23 208

Asian, Male 76 188 40.40 2 063.98 27 158

Coloured, Female 18 44 40.90 336.01 18 667

Coloured, Male 18 51 35.30 664.01 36 890

White, Female 43 90 47.80 974.51 22 663

White, Male 35 95 36.80 1 260.23 36 007

Employees with a disability 14 50 28 421.76 30 126

TOTAL 1 178.99 4 022 29.30 24 148.75 20 483.00

Table 3.8.2 Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2019 and 31 March 2020

Salary bandBeneficiary Profile Cost


Number of employees

% of total within salary bands

Total Cost (R’000)

Average cost per employee

01 Lower Skilled (Levels 1-2) 120 333 36.00 978.06 8 151

02 Skilled (Levels 3-5) 479 1 348 35.50 6 209.13 12 963

03 Highly Skilled Production

(Levels 6-8)

413 1 368 30.30 9 973.94 24 092

04 Highly Skilled Supervision

(Levels 9-12)

129 284 45.40 5 713.80 44 293

09 Other 0 371 0 0 0

11 Contract (Levels 3-5) 4 62 6.50 57.90 14 475

12 Contract (Levels 6-8) 25 174 14.40 529.92 21 197

13 Contract (Levels 9-12) 1 42 2.40 28.91 28 912

TOTAL 1 171 3 982 29.40 23 491.67 20 044



Table 3.8.3 Performance Rewards by critical occupation for the period 1 April 2019 and 31 March 2020

Critical occupation



Number of employees

% of total within occupation



Financial clerks and credit controllers 6 8 75 122.53 20 422

Human resources clerks 27 72 37 400.22 14 823

Security officers 0 5 0 0 0

Household and laundry workers 0 1 0 0 0

All artisans in the building metal machinery etc.

17 158 10.80 332.21 19 542

Human resources & organisat developm & relate prof

6 23 26.10 147.39 24 565

Messengers porters and deliverers 20 50 40 239.69 11 984

Road trade workers. 38 126 30.20 588.29 15 481

Safety health and quality inspectors 0 2 0 0 0

Finance and economics related 3 4 75 114.50 38 166

Logistical support personnel 1 1 100 25.71 25 707

Other administrat & related clerks and organisers

273 1 096 24.90 4 224.08 15 473

Auxiliary and related workers 14 28 50 201.38 14 385

Other occupations 0 1 0 0 0

Legal related 2 3 66.70 49.64 24 819

Financial and related professionals 5 9 55.60 264.86 52 973

Building and other property caretakers 4 4 100 52.20 13 051

Administrative related 73 144 50.70 3 690.57 50 556

Communication and information related

3 2 150 73.82 24 606

Secretaries & other keyboard operating clerks

19 29 65.50 338.43 17 812

Cleaners in offices workshops hospitals etc.

41 100 41 385.66 9 406

Library mail and related clerks 1 2 50 18.48 18 484

Human resources related 4 13 30.80 135.27 33 817

Head of department/chief executive officer

0 1 0 0 0

Trade labourers 23 69 33.30 213.68 9 290

Road superintendents 3 11 27.30 71.05 23 682

Language practitioners interpreters & other commun

5 8 62.50 117.67 23 535

Regulatory inspectors 165 688 24.10 4 755.53 28 649

Cartographic surveying and related technicians

0 9 0 0 0

Civil engineering technicians 46 260 17.70 1 135.20 24 678

Road workers 129 396 32.60 1 182.77 9 169

Other administrative policy and related officers

70 197 35.50 1 843.18 26 331

Artisan project and related superintendents

3 18 16.70 99.87 33 290

Bus and heavy vehicle drivers 0 3 0 0 0

Senior managers 6 36 16.70 577.07 96 179

Client inform clerks(switchb recept inform clerks)

15 23 65.20 365.39 24 359

Printing planners and production controllers

0 1 0 0 0



Engineers and related professionals 20 58 34.50 677.76 33 888

Cartographers and surveyors 0 1 0 0 0

Other information technology personnel.

1 1 100 31.77 31 774

Light vehicle drivers 1 3 33.30 12.24 12 238

Engineering sciences related 4 15 26.70 176.72 44 181

Motor vehicle drivers 113 300 37.70 1 313.42 11 623

Security guards 2 23 8.70 24.02 12 009

Food services aids and waiters 14 18 77.80 120.79 8 628

Mechanical engineering thechnicians 0 1 0 0.00 0

Librarians and related professionals 1 1 100 25.71 25 707TOTAL 1 178 4 022 29.30 24 148.75 20 483

NOTES


Critical occupations are defined as occupations or sub-categories within an occupation in which there is a scarcity of qualified and experienced persons currently or anticipated in the future, either because such skilled persons are not available or they are available but do not meet the applicable employment criteria; for which persons require advanced knowledge in a specified subject area or science or learning field and such knowledge is acquired by a prolonged course or study and/or specialised instruction; where the inherent nature of the occupation requires consistent exercise of discretion and is predominantly intellectual in nature; and in respect of which a department experiences a high degree of difficulty to recruit or retain the services of employees.

Table 3.8.4 Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2019 and 31 March 2020

Salary band



Number of employees

% of total within salary bands



% of SMS Wage Bill

Band A 6 26 23.10 559.54 93 256.90 1.70Band B 1 8 12.50 97.54 97 536.80 0.80Band C 0 4 0 0 0 0Band D 0 2 0 0 0 0TOTAL 7 40 17.50 657.08 93 868.30 1.20



FOREIGN WORKERS

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

Table 3.9.1 Foreign workers by salary band for the period 1 April 2019 and 31 March 2020

Salary band 01 April 2019 31 March 2020 ChangeNumber % of total Number % of total Number % Change

Highly skilled production

(Levels 6-8) 1 100 1 100 0 0Highly skilled supervision

(Levels 9-12) 0 0 0 0 0 0Other 0 0 0 0 0 0Skilled (Levels 3-5) 0 0 0 0 0 0TOTAL 1 100 1 100 0 0

Table 3.9.2 Foreign workers by major occupation for the period 1 April 2019 and 31 March 2020

Major Occupation 01 April 2019 31 March 2020 ChangeNumber % of total Number % of total Number % Change

Administrative office workers 0 0 0 0 0 0Other occupations 0 0 0 0 0 0Professionals and managers 1 1 1 100 0 0TOTAL 1.00 100 1 100 0 0

LEAVE UTILISATION

The Public Service Commission identified the need for careful monitoring of sick leave within the public service. The following tables provide an indication of the use of sick leave and disability leave. In both cases, the estimated cost of the leave is also provided.

Table 3.10.1 Sick leave for the period 1 January 2019 to 31 December 2019

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)

Contract (Levels 1-2) 0 0 0 0 0 0Contract (Levels 13-16) 263 86.30 32 1.10 8 1 227Contract (Levels 3-5) 153 69.90 32 1.10 5 129Contract (Levels 6-8) 524 76.70 90 3 6 763Contract (Levels 9-12) 79 88.60 13 0.40 6 199Contract Other 513 48.70 148 5 3 188Highly skilled production (Levels 6-8) 12 864 76.90 1 206 40.60 11 17 866Highly skilled supervision (Levels 9-12) 1 717 80.80 218 7.30 8 4 715Lower skilled (Levels 1-2) 2 097 84.80 240 8.10 9 1 193



Salary band Total days% Days with

Medical certification

Number of Employees using sick

leave

% of total employees using

sick leave



Senior management (Levels 13-16) 263 86.30 32 1.10 8 1 227Skilled (Levels 3-5) 9 612 81.50 992 33.40 10 8 748TOTAL 27 822 78.90 2 971 100 9 35 029

Table 3.10.2 Disability leave (temporary and permanent) for the period 1 January 2019 to 31 December 2019

Salary band Total days

% Days with Medical

certification

Number of Employees

using disability

leave

% of total employees

using disability

leave



Contract (Levels 6-8) 29 100 3 6 10 43Highly skilled production (Levels 6-8) 1 020 100 23 46 44 1 590Highly skilled supervision (Levels 9-12) 284 100 2 4 142 721Lower skilled (Levels 1-2) 260 100 5 10 52 153Skilled (Levels 3-5) 1 073 100 17 34 63 960TOTAL 2 666 100 50 100 53 3 468

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

Table 3.10.3 Annual Leave for the period 1 January 2019 to 31 December 2019

Salary band Total days taken

Number of Employees

using annual leave

Average per

employee

Contract (Levels 1-2) 0 0 0Contract (Levels 13-16) 0 0 0Contract (Levels 3-5) 869 15 59Contract (Levels 6-8) 3 361 19 179Contract (Levels 9-12) 384 12 31Contract Other 2 300 9 251Highly skilled production (Levels 6-8) 35 587 25 1 409Highly skilled supervision (Levels 9-12) 7 032 25 287Lower skilled (Levels 1-2) 6 879 21 335Senior management (Levels 13-16) 833 23 36Skilled (Levels 3-5) 33 654 24 1 415TOTAL 90 899 23 4 002



Table 3.10.4 Capped leave for the period 1 January 2019 to 31 December 2019

Salary bandTotal days of capped leave

taken

Number of Employees using

capped leave

Average number of

days taken per employee

Average capped leave per

employee as at 31 December 2019

Highly skilled production (Levels 6-8) 157 5 55 157Highly skilled supervision (Levels 9-12) 43 6 71 43Lower skilled (Levels 1-2) 0 0 0 0Senior management (Levels 13-16) 7 4 111 7Skilled (Levels 3-5) 33 3 59 33TOTAL 240 5 59 240

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

Table 3.10.5 Leave payouts for the period 1 April 2019 and 31 March 2020

Reason Total amount (R’000)

Number of employees

Average per employee (R’000)

Annual - discounting with resignation (work days) 986.00 48 20 542Annual - gratuity: death/retirement/medical retirement (work 1 886.00 95 19 853Capped - gratuity: death/retirement/medical retirement (work 5 857.00 84 69 726TOTAL 8 728.00

HIV/AIDS & HEALTH PROMOTION PROGRAMMES

Table 3.11.1 Steps taken to reduce the risk of occupational exposure

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

Key steps taken to reduce the risk

Nil N/A

Table 3.11.2 Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and provide the required information)

Question Yes No Details, if yes

1. Has the department designated a member of the SMS to implement the provisions contained in Regulation 55 of the Public Service Regulations, 2016? If so, provide her/his name and position.

X Ms MC Zwane, Chief Director: Human Resource Management.

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

X The Department has a dedicated unit called Employee Health & Wellness Programme with two (2) employees and the annual budget is R4m.

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

X Professional counselling and assessment, debriefing, crisis intervention, referrals to respective registered medical practitioners, and implementation of prevention programmes and consultations as and when deems fit.

4. Has the department established (a) committee(s) as contemplated in Regulation 55 (6) (d) of the Public Service Regulations, 2016? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent.

X The committee is chaired by Ms MC Zwane (CD: HRM), other appointed members are Ms TM Zondi and Ms KH Mlakuhlwa from Head Office EHW unit; Ms S Hlela, Ms A Ndlovu, Ms G Hlabisa, and Ms S Afrika who are representing all employees from salary levels 1-14 under Empangeni, Ladysmith, Pietermaritzburg and Durban Regional Offices.



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

X The Department has an approved HIV/AIDS and TB Management policy that is regarded as an overarching directive that directly addresses all issues of human rights and discrimination in the workplace as aligned to one of the prescribed EHW Pillars.

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

X The EHW unit provides continuous support to employees who are directly or indirectly discriminated in general. Furthermore, the unit conducts ongoing awareness campaigns throughout the Department in terms of prevention strategies and encouraging employees to know their status. Health screenings are conducted continuously.

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

X There has been a noticeable increase from 197 to 220 number employees who participated in testing for HIV during the reporting period due to partnerships established with GEMS and other local NGOs in terms of utilising their services in this regard . Furthermore, there has been an increase on the number of employees who are assisted and treated by an in-house registered medical practitioner as compared to the previous financial year.

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

X - the number of employees accessing Departmental Wellness clinics.

- the number of referrals by respective supervisors.

- the reduction of employees accessing incapacity leave.

LABOUR RELATIONSTable 3.12.1 Collective agreements for the period 1 April 2019 and 31 March 2020

Subject matter Date

Nil N/A

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

Table 3.12.2 Misconduct and disciplinary hearings finalised for the period 1 April 2019 and 31 March 2020

Outcomes of disciplinary hearings Number % of total

Final Written Warning 12 75%Dismissal 2 16.7Case Withdrawn 2 16.7TOTAL 16 100%

Table 3.12.3 Types of misconduct addressed at disciplinary hearings for the period 1 April 2019 and 31 March 2020

Type of misconduct Number % of total

Fraud/Theft 16 48.48%Social Grant Misconduct 0 0Low Income Housing 0 0Insubordination 2 6.06%Misuse of State property 1 3.03%Under the influence of alcohol 0 0Absenteeism 1 3.03%



Assault 2 6.06%Other 11 33.33TOTAL 33 100%

Table 3.12.4 Grievances logged for the period 1 April 2019 and 31 March 2020

Grievances Number % of TotalNumber of grievances resolved 133 83.13%Number of grievances not resolved 27 16.87%Total number of grievances lodged 160 100%

Table 3.12.5 Disputes logged with Councils for the period 1 April 2019 and 31 March 2020

Disputes Number % of Total

Number of disputes upheld 11 35.48%Number of disputes dismissed 2 6.45%Total number of disputes lodged 31

Table 3.12.6 Strike actions for the period 1 April 2019 and 31 March 2020

Total number of persons working days lost 0Total costs working days lost 0Amount recovered as a result of no work no pay (R’000) 0

Table 3.12.7 Precautionary suspensions for the period 1 April 2019 and 31 March 2020

Number of people suspended 3Number of people whose suspension exceeded 30 days 3Average number of days suspended +120 daysCost of suspension (R’000) R729 026



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

Table 3.13.1 Training needs identified for the period 1 April 2019 and 31 March 2020

Occupational category GenderNumber of employees as at 1 April

2019

Training needs identified at start of the reporting period

LearnershipsSkills

Programmes & other short

courses

Other forms of training

Total

Legislators, senior officials and managers

Female 18 1 43 0 44Male 17 0 27 0 27

ProfessionalsFemale 62 4 22 0 26

Male 63 4 15 0 19

Technicians and associate professionalsFemale 309 0 60 0 60

Male 301 0 57 0 57

Clerks Female 809 0 23 0 23

Male 198 0 36 0 36

Service and sales workersFemale 263 0 35 0 35

Male 509 0 31 0 31

Skilled agriculture and fishery workersFemale 0 0 0 0 0

Male 0 0 0 0 0

Craft and related trades workersFemale 63 0 15 0 15

Male 208 0 20 0 20

Plant and machine operators and assemblers

Female 28 0 18 0 18Male 304 0 16 0 16

Elementary occupationsFemale 297 0 27 0 27

Male 432 0 30 0 30

Sub TotalFemale 1849 5 445 0 450

Male 2032 4 432 0 436

Total 3881 0 877 0 886

Table 3.13.2 Training provided for the period 1 April 2019 and 31 March 2020

Occupational category GenderNumber of employees

as at 1 April 2019

Training provided within the reporting period

LearnershipsSkills

Programmes & other short

courses

Other forms of training

Total

Legislators, senior officials and managers

Female 18 1 6 0 7Male 17 0 3 0 3

Professionals Female 62 4 6 0 10Male 63 4 4 0 8

Technicians and associate professionals

Female 309 0 12 0 12Male 301 0 8 0 8

Clerks Female 809 0 15 0 15Male 198 0 10 0 10

Service and sales workers Female 263 0 10 0 10Male 509 0 11 0 11



Skilled agriculture and fishery workers

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

Craft and related trades workers Female 63 0 2 0 2Male 208 0 2 0 2

Plant and machine operators and assemblers

Female 28 0 2 0 2Male 304 0 2 0 2

Elementary occupations Female 297 0 4 0 4Male 432 0 4 0 4

Sub Total Female 1849 8 57 0 57Male 2032 1 44 0 44

Total 3881 9 101 0 101

INJURY ON DUTYThe following tables provide basic information on injury on duty.

Table 3.14.1 Injury on duty for the period 1 April 2019 and 31 March 2020

Nature of injury on duty Number % of total

Required basic medical attention only 19 100%

Temporary Total Disablement 0 0%Permanent Disablement 0 0%Fatal 0 0%Total 19 100%

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

• The rendering of expert advice;

• The drafting of proposals for the execution of specific tasks; and

• The execution of a specific task which is of a technical or intellectual nature but excludes an employee of a department.

Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2019 and 31 March 2020

Project title Total number of consultants that worked on project

Duration

(work days)

Contract value in

RandNONE - - -



Table 3.15.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2019 and 31 March 2020

Project title Percentage ownership by HDI groups

Percentage management by HDI groups

Number of consultants from HDI groups that work on the project

NONE - - -

Table 3.15.3 Report on consultant appointments using Donor funds for the period 1 April 2019 and 31 March 2020

Project title Total Number of consultants that worked on project

Duration

(Work days)Donor and contract

value in Rand

NONE

Total number of projects Total individual consultantsTotal duration

Work daysTotal contract value in

Rand

NONE

Table 3.15.4 Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2019 and 31 March 2020

Project title Percentage ownership by HDI groups

Percentage management by HDI groups

Number of consultants from HDI groups that work on the

projectNONE - - -

SEVERANCE PACKAGESTable 3.16.1 Granting of employee-initiated severance packages for the period 1 April 2019 and 31 March 2020

Salary bandNumber of

applications received

Number of applications referred to the MPSA

Number of applications supported by MPSA

Number of packages approved by department

NONE 0 0 0 0




FINANCIAL INFORMATION

PART E:



PART E:


ANNUAL FINANCIAL STATEMENTS

TRANSPORT

for the year ended 31 March 2020

CONTACT INFORMATION:

Name of Chief Financial Officer: Mr. W. Evans

Contact telephone number: 033 - 3558008

Contact e-mail address: [email protected]

Name of contact at provincial treasury: Mr. Santanu Moodley

Contact telephone number: 033 - 8794200


Name of relevant Auditor: Mr. J. Nkosi

Contact telephone number: 033 - 264 7447


Name of contact at National Treasury: Star Ngozi

Contact telephone number: 012 315-5763


PART E:


AFS TABLE OF CONTENTPART E:

VOTE 12FOR THE YEAR ENDED 31 MARCH 2019

TABLE OF CONTENTS PAGE

Report of the Auditor-General 147

Report of the Accounting Officer 156

Appropriation Statement 165

Notes to the Appropriation Statement 197

Statement of Financial Performance 199

Statement of Financial Position 200

Statement of Changes in Net Assets 201

Cash Flow Statement 202

Accounting Policies 203

Notes to the Annual Financial Statements 209

Annexures 273


REPORT OF THE AUDITOR-GENERALPART E:

1

Report of the auditor-general to the KwaZulu-Natal Provincial Legislature on vote no. 12: Department of Transport

Report on the audit of the financial statements

Qualified opinion

1. I have audited the financial statements of the Department of Transport set out on pages to , which comprise the appropriation statement, statement of financial position as at 31 March 2020, statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, as well as the notes to financial statements, including a summary of significant accounting policies.

2. In my opinion, except for the effects of the matters described in the basis for qualified opinion section of this auditor’s report, the financial statements present fairly, in all material respects, the financial position of the Department of Transport as at 31 March 2020, and its financial performance and cash flows for the year then ended in accordance with the Modified Cash Standard (MCS) prescribed by National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and the Division of Revenue Act of South Africa, 2019 (Act No.16 of 2019) (Dora).

Basis for qualified opinion

Irregular expenditure

3. The department did not record the full extent of irregular expenditure in the notes to the financial statements, as required by section 40(3)(b)(i) of the PFMA. This was due to expenditure incurred in contravention of the supply chain management legislation not being detected, recorded and appropriately disclosed in the financial statements. Consequently, I was unable to determine the full extent of the irregular expenditure stated at R17,84 billion in note 31 to the financial statements, as it was impractical to do so.

Accrued departmental revenue

4. I was unable to obtain sufficient appropriate audit evidence that accrued departmental revenue for the current year had been properly accounted for, due to the status of the accounting records. I was unable to confirm the accrued departmental revenue by alternative means. Consequently, I was unable to determine whether any adjustment was necessary to accrued departmental revenue stated at R65,41 million as disclosed in note 30 to the financial statements.

Context for the opinion

5. 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.

165 to287



2

6. I am independent of the department in accordance with sections 290 and 291 of the Code of Ethics for Professional Accountants and parts 1 and 3 of the International Code of Ethics for Professional Accountants (including International Independence Standards) of the International Ethics Standards Board for Accountants (IESBA codes) as well as 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.

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

Emphasis of matters

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

Immovable tangible capital assets

9. As disclosed in note 41 to the financial statements, completed roads amounting to R59,6 billion (2018/19: R57,6 billion) were removed from the financial statements. The department adopted a phased in approach relating to disclosure of completed roads and related infrastructure in accordance with paragraph 4.4: Modified Cash Standard - Accounting and reporting for immovable assets.

Underspending of budget

10. As disclosed in the appropriation statement, the department materially underspent the budget for transport infrastructure by R1,64 billion due to delays in infrastructure projects.

Subsequent events

11. I draw attention to note 38 in the financial statements, which deals with subsequent events and specifically the possible effects of the future implications of Covid-19 on the department’s future prospects, performance and cash flows. Management have also described how they plan to deal with these events and circumstances.

Other matter

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

Unaudited supplementary schedules

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

Responsibilities of the accounting officer for the financial statements

14. The accounting officer is responsible for the preparation and fair presentation of the financial statements in accordance with MCS and the requirements of the PFMA and Dora, and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

273 to 287



3

15. In preparing the financial statements, the accounting officer is responsible for assessing the department’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 department or to cease operations, or has no realistic alternative but to do so.

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

16. 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.

17. 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

18. 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 the selected programme presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.

19. My procedures address usefulness and reliability of the reported performance information, which must be based on the approved performance planning documents of the department. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures do not examine whether the actions taken by the department enabled service delivery. 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.

20. 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 programme 2: transport infrastructure presented on pages to in the annual performance report of the department for the year ended 31 March 2020.

21. 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

46 to 47



4

related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

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

Other matters

23. I draw attention to the matters below.

Achievement of planned targets

24. The annual performance report on pages xx to xx sets out information on the achievement of planned targets for the year and explanations are also provided for the under and over-achievement of a significant number of targets.

Adjustment of material misstatements

25. I identified material misstatements in the annual performance report submitted for auditing. These material misstatements were on the reported performance information for transport infrastructure programme. As management subsequently corrected the misstatements, I did not raise any material findings on the usefulness and reliability of the reported performance information.

Report on the audit of compliance with legislation

Introduction and scope

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

27. The material findings on compliance with specific matters in key legislation are as follows:

Annual financial statements

28. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework and supported by full and proper records, as required by section 40(1)(a) and (b) of the PFMA. Material misstatements of immovable tangible capital assets, irregular expenditure and accrued departmental revenue identified by the auditors in the submitted financial statements were corrected and the supporting records were provided subsequently, but the uncorrected material misstatements of irregular expenditure and accrued departmental revenue and supporting records that could not be provided resulted in the financial statements receiving a qualified opinion.

Consequence management

44 to 45



5

29. I was unable to obtain sufficient appropriate audit evidence that disciplinary steps were taken against officials who had incurred irregular, fruitless and wasteful expenditure as required by section 38(1)(h)(iii) of the PFMA because some investigations were not performed.

30. Disciplinary steps were not taken against some of the officials who had permitted irregular expenditure, as required by section 38(1)(h)(iii) of the PFMA.

Expenditure management

31. Effective and appropriate steps were not taken to prevent irregular expenditure, as required by section 38(1)(c)(ii) of the PFMA and treasury regulation 9.1.1. As reported in the basis for qualified opinion the full extent of the irregular expenditure could not be quantified. The majority of the irregular expenditure disclosed in the financial statements was caused by poor contract management.

Procurement and contract management

32. Some of the contracts and quotations were awarded to bidders based on pre-qualification criteria that were not stipulated and differed from those stipulated in the original invitation for bidding and quotations, in contravention of the 2017 preferential procurement regulation 4(1) and 4(2). Similar non-compliance was also reported in the prior year.

32. Some of the bid documentation for procurement of commodities designated for local content and production, did not stipulate the minimum threshold for local production and content as required by the 2017 preferential procurement regulation 8(2).

Other information

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

34. 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.

35. 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.

36. If, based on the work I have performed, I conclude that there is a material misstatement in this other information, I am required to report that fact. I have nothing to report in this regard.

Internal control deficiencies

37. 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. The matters reported below are limited to the



6

significant internal control deficiencies that resulted in the basis for the qualified opinion and the findings on compliance with legislation included in this report.

38. Monitoring of financial information and compliance with key legislation, was not effective to ensure that the objectives of transparent, credible and reliable reporting were achieved.

39. Management did not adequately maintain and review underlying schedules to support financial statement disclosures. Non-compliance could have been prevented had management regularly monitored adherence with legislation.

40. The risk assessment processes and reviews were not adequate to ensure that risks relating to financial reporting, including non-compliance with key legislation were mitigated and responded to in good time by management.

Other reports

41. I draw attention to the following engagements conducted that had, or could have, an impact on the matters reported in the department’s financial statements, reported performance information, compliance with applicable legislation and other related matters. These reports did not form part of my opinion on the financial statements or my findings on the reported performance information or compliance with legislation.

42. The shared internal audit unit for departments in the province performed 22 investigations relating to various procurement irregularities and fraudulent payments made to suppliers and employees. Nine investigations were completed and 13 were still in progress at year-end. The accounting officer commenced with legal and disciplinary action against officials in three of the finalised investigations. Implementation of recommendations in one of the completed cases is in progress and implementation of recommendations had not commenced in five of the completed cases.

43. In terms of Proclamation Number R14 of 2018, issued in Government Gazette 41650 of 25 May 2018, the Special Investigating Unit is investigating various irregularities at the department relating to the sale of properties and rental collections. This investigation was completed as at 31 March 2019. The accounting officer has commenced with implementing the recommendations of the report.



7

44. In terms of Proclamation Number R36 of 2018, issued in Government Gazette 42101 of 14 December 2018, the Special Investigating Unit is investigating various irregularities at the department relating to the procurement of consultancy services. This investigation was still in progress at the date of this report.

Pietermaritzburg

13 November 2020



8

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 department’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 department’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 Department of Transport’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 department 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, actions taken to eliminate threats or safeguards applied.


REPORT OF THE AUDITOR GENERALPART E:


REPORT BY THE ACCOUNTING OFFICER1. OVERVIEW OF THE OPERATIONS OF THE DEPARTMENT1.1 IMPORTANT POLICY DECISIONS AND STRATEGIC ISSUES FACING THE DEPARTMENT

There have been changes to existing policies, strategies and plans that have either impacted upon or supplemented our Departmental policies and plans. These are summarised below:

• Disaster Management Act, 2002: Regulations No 318 of 18 March 2020 and the various amendment regulations, which set out the response of the country to the declared state of disaster resulting from the Covid-19 pandemic.

The following are strategic issues facing the department:

• The department is still constrained by employee shortages which arose from the moratorium on the filling of posts that were imposed may years ago as well as Provincial Treasury Circular 11/5/8/1/12-16/17, dated 10 February 2016. This directive has resulted in the Department having to carefully prioritise posts which are critical to fill. The increased restrictions to this circular and additional processes in obtaining Treasury approval before filling posts, are having a negative impact on the Department and our ability to function optimally.

• The delay in the finalising of the Departmental structure continues to exacerbate this situation which has also had a huge negative impact on service delivery.

• The department aims to continue to ensure that it meets its employment equity targets in the workplace. To this end, the department again commits itself to achieving representation of designated population groups in management and women in management positions (50%). The department will also strive to increase the number of Youth and People Living with Disabilities in our employment.

• The Department continued to adhere to the expanded cost-cutting measures, as reissued by Provincial Treasury in 2019/20, in conjunction with National Treasury Instruction 01 of 2013/14: Cost contained measures.

• The National and Provincial Treasury’s reduction of the Department’s budget has also impacted on our targeted delivery for construction and maintenance programmes. This has been exacerbated by a decreased allocation from the Provincial Roads Maintenance Grant (PRMG). Since the inception of the cost-cutting measures the cumulative budget cuts total R1.289 billion.

• During the 2018/19 Adjustments Estimates, the learner transport services function was shifted back to DOT altogether. The number of learners benefiting from the learner transport services is 47 747 from 320 schools. The increase in demand for the services placed tremendous pressures on the budget however the department received additional funding in that regard. The pressures were expected to continue into 2019/20 and as a result an original allocation of R218.201 million was received in 2019/20 Main Appropriation with an additional allocation of R130 million during the 2019/20 Adjusted Appropriation.

• The rising fuel costs have also impacted on the department and its operations. The claims from the bus operators are linked to an escalation clause that includes labour and fuel indices, among others. The increase in fuel prices led to the escalation leading to increased bus subsidies paid to bus operators. The allocation towards used for the provision of this service is from the Public Transport Operations Grant (PTOG). This is a Schedule 4 grant (supplementary grant) and, as such, the department had to absorb the resultant spending pressures in respect of its equitable share.

• The other major challenge that the department is constantly faced with is the increased demand for both construction and maintenance of the road network despite the disproportionate increase in funding. The department’s current Maintenance budget is significantly lower than the required allocation. The effect of this has seen the blacktop road condition deteriorate from 36% to 57% in the poor to very poor road category while the industry target is less than 10%.

• Action plans put in place to address the extensive irregular expenditure being incurred by the department have resulted in several service delivery challenges as the Supply Chain Management process have been strengthened and weakness in the contract management processes have been addressed. These challenges


REPORT BY THE ACCOUNTING OFFICERPART E:

include the suspension of the Vukuzakhe Emerging Contractor Programme which was found to be not aligned to the current procurement prescripts and resulted in most road maintenance contracts having to be restarted.

2. OVERVIEW OF THE FINANCIAL RESULTS OF THE DEPARTMENT2.1 DEPARTMENTAL RECEIPTS

Revenue Tariffs

The department adjusted its revenue tariff for the 2019/20 financial year by adding a minimum of the inflation rate (CPI) plus one percent to the 2018/19 tariff rate. These increases are approved by the department in consultation with the Provincial Treasury. The following services rendered by the department were increased at inflationary rate (CPI) plus one per cent for the 2019/20 financial year:

• Abnormal Loads Licences • Traffic Officer Diploma Course Fees • Examiner of Vehicles Course Fees • Examiner of Driving Licence Course • Dangerous Goods and Other Courses • Evaluation of Examiners • Dräger Training • Speed Timing Courses • Refresher Training iro Other Courses • Duplicate Registration Fee • Issue of Permits • Traffic Assistance • Traffic Warden Course • Exemptions: New Applications or Renewals • Copies of Accident Information

MOTOR VEHICLE LICENCES

The KwaZulu-Natal Department of Transport which is responsible for motor vehicle registration and licensing in terms of the current national and provincial road traffic legislation, collects motor vehicle licence fees through 82 Registering Authority offices, made up of 7 Provincial Offices, 41 Municipal Offices, and 34 Post Offices. Motor vehicle licence fees are calculated, country wide, on the tare weight of a vehicle and each MEC of the 9 provinces is mandated to administer vehicle registration and licence fees, inclusive of the increase thereof.

The variances between motor vehicle licences charged across all provinces in the various fee categories are significant and as such the province is losing revenue to neighbouring provinces due to cheaper rates as the fees have not yet been standardised. To avoid further losses the department as been implementing a conservative 4% tariff increase rate since the 2016/17 financial year to narrow the gap.

A task team comprising of representatives from Provincial Treasuries and National Treasury was formed to explore ways to standardise the tariffs for motor vehicle licences, as some provinces such as KZN charge higher rates than others.

ROAD & TRANSPORT LICENCES/FEES

Revenue collected for road and transport licences/fees includes learners’ and drivers’ licences applications, issuance, and renewal, conversion of drivers’ licences and the sale of personalised and specific number plates.

Some of the revenue collected is later retained by Agencies that provide licencing services on behalf of the department such as The Post Office, Provincial Municipalities as well as transactional fees paid over to the Road Traffic Management Corporation (RTMC).

The department has been experiencing a decline in the revenue collection against this category since the Learner and Driver License tariffs are only determined by the National Minister of Transport and these have remained the same for the past ten financial years. The other contributing factor to the decline is due to the economic climate as well as the high unemployment rate in the Province.



REVENUE COLLECTION

The Department of Transport collects the largest revenue in the province. Below is a table that presents a summary of revenue collected in comparison to the budgeted amounts for both the 2019/20 financial year and the 2018/19 financial year.

Departmental Receipts

2019/2020 2018/2019

EstimateActual

Amount Collected

(Over) Under

CollectionEstimate

Actual Amount

Collected

(Over) Under

Collection

R’000 R’000 R’000 R’000 R’000 R’000

Tax Receipts

- Motor vehicle licenses 1 783 000 1 866 422 (83 422) 1 694 050 1 763 535 (59 485)Sale of goods and services other than capital assets 102 304 89 345 12 959 115 931 105 916 10 015

Fines, penalties and forfeits 42 957 24 687 18 270 57 733 40 353 17 379Interest, dividends and rent on land 187 103 84 272 69 203

Sale of capital assets 1 425 3 895 (2 470) 7 481 - 7 481Financial transactions in assets and liabilities 1 698 2 942 (1 244) 2 324 3 693 (1 369)

Total 1 931 571 1 987 394 (55 823) 1 877 791 1 913 566 (35 775)

The department collected R1.987 billion for the year against an annual budget of R1.932 billion. The department over-collected revenue at 102.9 per cent or by R55.822 million, as follows:

• Motor vehicle licences collected R1.866 billion against the annual budget of R1.783 billion. The over-collection of R83.422 million can be attributed to higher than anticipated applications for new and renewal of motor vehicle licences. This is dependent on the vehicle population registered in the province.

• Fines, penalties and forfeits collected R43.517 million which is higher than the annual budget of R42.957 million, related to fines received being slightly higher than anticipated. Revenue from this category is dependent on the ability and willingness of the public to pay their fines.

• Sale of capital assets reflects revenue from the sale of redundant vehicles and mechanical plant. The over-collection of R2.470 million was due to an increase in the number of vehicles auctioned.

• Transactions in financial assets and liabilities reflects a revenue collection of R2.942 million against a budget of R1.698 million. Revenue from this source mainly provides for recoveries from previous years’ expenditure, like over-paid suppliers, and staff debts such as salary over-payments, breached bursary contracts, etc. The over-collection was mainly as a result of staff debt collections being higher than anticipated.

The over-collection was offset to some extent by an under-collection in the following categories:

• Sale of goods and services other than capital assets under-collected at R70.514 million against the annual budget of R102.304 million. Revenue from this source relates to applications for learners’ and drivers’ licences, and commission on PERSAL deductions such as insurance premiums and garnishees, course fees related to the Traffic Inspectorate Training College, etc. The under-collection was mainly due to lower than anticipated applications for learners’ and drivers’ licences, as well as conversions of drivers’ licences.

• Interest, dividends and rent on land under-collected at R103 000 against the annual budget of R187 000 mainly because interest on staff debts was lower than anticipated.



2.2 PROGRAMME EXPENDITURE

Below is a table that presents a summary of the actual expenditure in comparison to the adjusted appropriation for both the 2019/20 financial year and the 2018/19 financial year.

Programme Name 2019/2020 2018/2019Final

Budget Actual Variance FinalBudget Actual Variance

R’000 R’000 R’000 R’000 R’000 R’000

Administration 442 112 434 037 8 075 391 945 391 945 -Transport Infrastructure 7 752 686 6 115 422 1 637 264 7 339 038 7 102 727 236 311Transport Operations 1 812 290 1 812 121 169 1 891 303 1 891 303 -Transport Regulation 926 401 926 398 3 890 785 890 785 -Community Based Programme 36 056 29 594 6 462 52 606 52 606 -

Total 10 969 545 9 317 572 1 651 973 10 565 677 10 329 366 236 311

The department under-spent its 2019/20 budget by a net R1.652 billion. Most of the underspending was against Programme 2: Transport Infrastructure whilst only 0.4% of the underspending being against Programme 5: Community Based Program.

PROGRAMME 1: ADMINISTRATION

• Programme 1: Admin reflects a minor under-expenditure of R8.075 million against Goods and services and was due to the lower than budgeted costs for computers services.

Programme 2: Transport Infrastructure (R1.637 billion)

Programme 2: Transport Infrastructure shows net under-expenditure of R1.637 billion as follows:

• Slow progress with maintenance projects in respect of betterment and gravelling, as well as blading of gravel roads due to the suspension of the Vukuzakhe Emerging Contractor Development Programme. This programme was a vehicle used by the department to undertake maintenance projects and was designed to allow for the awarding of contracts to emerging contractors at a local level. However, the Auditor-General declared the programme Irregular resulting from the programme’s non-compliance with Preferential Procurement Policy Framework Act (PPPFA). The department then suspended the programme enable a review into the policy to align the programme to the Construction Industry Development Board (CIDB) and the National Contractor Developing Programme Framework and Guidelines and National Contractor Developing Programme Framework and Guidelines to make it compliant with the PPPFA.

• Challenges with access to quarries affecting maintenance projects that required gravel material like re-gravelling and patch gravelling, and this contributed to some of the under-spending. This is an issue throughout the province, but the areas mostly affected were the Ugu, Harry Gwala, and the uMgungundlovu District Municipalities. The department engaged with the House of Traditional Leaders and the Ingonyama Trust Board to address the challenges.

• Capital construction projects were significantly underspent as a result of poor performance by some contractors facing financial difficulties and thus not delivering on project milestones, change in the scope of work due to additional earthworks needed to be done as a result of changes in designs during construction, as well. The department has since terminated these poor performing contractors and re-advertised the tenders.

• SCM related challenges resulted in delays in the awarding of rehabilitation contracts. This was as a result of large volumes of applicants. The department received more than 1 100 bid applications and therefore the evaluation and adjudication took longer than anticipated. This was further intensified because the approval of the design and specification reports for the projects took longer than anticipated and was only completed in August 2019. The finalisation of the contracts was also delayed and these were only issued in October 2019, due to challenges in clarifying local content requirements in contracts. The delays were further exacerbated by the construction shut down period. Most of the construction work resumed during the final quarter of the financial year which then resulted in the substantial underspending that is being reported.



• A roll-over of funds into the 2020/21 financial year has been requested in that regard.

PROGRAMME 3: TRANSPORT OPERATIONS

• Programme 3: Transport Operations reflects a minor under-expenditure of R169 000 against Machinery and equipment and was due to the lower than budgeted costs for computers purchased for staff.

PROGRAMME 4: TRANSPORT REGULATION

• The department fully spent its allocation against this programme.

PROGRAMME 5: COMMUNITY BASED PROGRAMME (R6.462 MILLION)

• Programme 5: Community Based Programme shows an under-expenditure of R6.462 million, against Goods and services due to lower than budgeted consultants’ costs related to the management and co-ordination of the departmental EPWP.

2.3 VIREMENTS

Virements that have taken place during the 2019/20 financial year were as a result of savings identified between programmes and used to defray expenditure pressures against other programmes.

The purpose of these virements was to ensure service delivery and alignment to the Department’s mandated objectives.

The department hereby confirms that these virements remain within the stipulated eight percent under each main division.

The virements that were applied are as per the below:

2019/2020

Programme Name Adjusted Appropriation Virements Final

AppropriationActual

Expenditure Variance

R’000 R’000 R’000 R’000 R’000

Administration 412 788 29 324 442 112 434 037 8 075

Transport Infrastructure 7 827 234 (74 548) 7 752 686 6 115 422 1 637 264

Transport Operations 1 739 396 72 894 1 812 290 1 812 121 169

Transport Regulation 950 936 (24 535) 926 401 926 398 3

Community Based Programme 39 191 (3 135) 36 056 29 594 6 462

Total 10 969 545 - 10 969 545 9 317 572 1 651 973

The department undertook virements post Adjustments Estimate to reduce unauthorised expenditure, in respect of Programme 1 and 3 as reflected above.

Most of the virements undertaken did not require Treasury approval as they were within the approval of the Accounting Officer, and do not exceed the 8 per cent limit set in terms of the PFMA.

The post Adjustments Estimate virements undertaken by the department are as follows:

a) A total amount of R3.135 million was moved from Programme 5: Community Based Programmes to Goods and services against the sub-programme: Corporate Services to cover expenditure pressures related to higher than projected computer services costs as well as computer servers as a result of network challenges that resulted in higher SITA costs. The movements were as follows:

• R934 000 from Compensation of employees ascribed to non-filling of posts against the sub-programme: Programme Support Community Based;

• R1.718 million from Compensation of employees ascribed to non-filling of posts against the sub-programme: Programme Innovation and Empowerment;

• R483 000 from Goods and services due to community development programmes that were not undertaken against the sub-programme: Community Development;



b) A total amount of R24.535 million was moved from Programme 4: Transport Regulation to R117 000 under Machinery and equipment and R24.418 million under Goods and services against the sub-programme: Corporate Services to cover expenditure pressures related to higher than projected computer services costs as well as computer servers as a result of network challenges that resulted in higher SITA costs. The movements were as follows:

• An amount of R52 000 was moved from Compensation of employees due to the non-filling of vacant posts against the sub-programme: Programme Support Regulation to Goods and services under the sub-programme: Corporate Services;

• An amount of R2.886 million was moved from Goods and services due to savings from non-filling of posts on items such as subsistence and travelling against the sub-programme: Programme Support Regulation to Goods and services under the sub-programme: Corporate Services;

• An amount of R165 000 was moved from Compensation of employees due to the non-filling of vacant posts against the sub-programme: Transport Administration and Licensing to Goods and services under the sub-programme: Corporate Services;

• An amount of R26 000 was moved from Compensation of employees due to the non-filling of vacant posts against the sub-programme: Transport Administration and Licensing to Transfers and Subsidies to: Provinces and Municipalities under the sub-programme: Corporate Services;

• An amount of R6 000 was moved from Compensation of employees due to the non-filling of vacant posts against the sub-programme: Transport Administration and Licensing to Transfers and Subsidies to: Households under the sub-programme: Corporate Services;

• An amount of R5.454 million was moved from Compensation of employees due to the non-filling of vacant posts against the sub-programme: Transport Administration and Licensing to Machinery and equipment under the sub-programme: Corporate Services;

• An amount of R1.891 million was moved from Goods and services due to lower than budgeted computer services costs against the sub-programme: Transport Administration and Licensing to Buildings and other fixed structures under the sub-programme: Corporate Services;

• An amount of R5.046 million was moved from Goods and services due to lower than budgeted computer services costs against the sub-programme: Transport Administration and Licensing to Buildings and other fixed structures under the sub-programme: Corporate Services;

• An amount of R7 000 was moved within the Transfers and Subsidies to: Households economic classification due to lower than budgeted staff exit costs from the sub-programme: Transport Administration and Licensing to the sub-programme: Corporate Services;

• An amount of R117 000 was moved within the Machinery and equipment economic classification in line with filling of posts which resulted in less demand for computer and office equipment from the sub-programme: Transport Administration and Licensing to the sub-programme: Corporate Services.

• An amount of R2.894 million was moved from Compensation of employees due to the non-filling of vacant posts against the sub-programme: Operator Licenses and Permits to Goods and services under the sub-programme: Corporate Services;

• An amount of R5.991 million was moved from Goods and services due to lower than budgeted property payments in respect of cleaning and security of departmental buildings the sub-programme: Operator Licenses and Permits to Goods and services under the sub-programme: Corporate Services;

c) A total amount of R1.654 million was moved from Goods and services as a result of slow progress with maintenance projects in respect of betterment and gravelling, as well as blading of gravel roads against the sub-programme: Maintenance under Programme 2: Transport Infrastructure to the sub-programme: Corporate Services to cover expenditure pressures related to higher than projected computer services costs as a result of network challenges that resulted in higher SITA costs.

d) A total amount of R72.894 million was moved to Public Corporations and Private Enterprises against the sub-programme: Public Transport Services, from Compensation of employees ascribed to non-filling of posts against the sub-programme: Maintenance under Programme 2: Transport Infrastructure, in respect of the Public Transport Operations grant (PTOG) due to under-funding of the grant since inception, as well as higher re-negotiated fees for bus subsidies paid to bus operators, which are also linked to labour and fuel indices.



Requested roll-overs to 2020/21

The department reflected under-expenditure of R1.620 billion against its budget at year-end against the equitable share allocation, while the conditional grant allocation was fully spent. The department has requested an equitable share roll-over of R1.501 billion under Programme 2, against Buildings and other fixed structures, as follows:

• R1.170 billion was against Refurbishment and rehabilitation: Capital in respect of rehabilitation of surfaced roads. There were various factors such as delays in the awarding of contracts as a result of large volumes from applicants resulting in the evaluation and adjudication processes taking longer than anticipated. This was further intensified by the approval of the designs and specifications reports for the projects, which took longer than anticipated and was only completed in August 2019. The finalisation of the contracts was also delayed and were only issued in October 2019, due to SCM having to clarify local contents in contracts. In addition, the department experienced poor performance by contractors who abandon sites due to financial difficulties and had to cancel some of these non-performing contracts, and then re-advertise the tenders.

• R331.241 million was against Upgrades and additions: Capital in respect of roads upgrade. This was attributed to contracts that were terminated due to non-performance by contractors, change in the scope of work, delays in issuing tenders due to appeals, SCM related challenges, as well as contractors facing financial difficulties and thus not delivering on project milestones.

3. UNAUTHORISED, FRUITLESS AND WASTEFUL EXPENDITURE• The department did not incur any unauthorised expenditure in the 2019/20 financial year.

• The fruitless and wasteful expenditure incurred by the department in the 2019/20 financial year totals R broken down as follows:

R’000 Opening Balance

1 April 2019

Increase Decrease Closing Balance

31 March 2020

No Show Accommodation 26 - - 26

Printing of 2017/2018 Annual Report 160 - - 160

MR 38 Construction 733

Total 919 - - 919

4. FUTURE PLANS OF THE DEPARTMENTThe department plans to continue to strive to provide the public with mobility through an affordable transportation system that is safe, integrated, regulated and accessible, to meet the developmental needs of our province.

5. PUBLIC PRIVATE PARTNERSHIPSThe department did not enter into any Public Private Partnerships the 2019/20 financial year.

6. DISCONTINUED ACTIVITIES/ACTIVITIES TO BE DISCONTINUEDThe department did not discontinue, nor does it have any plans to discontinue any services/activities.

7. NEW/PROPOSED ACTIVITIESThere are no new/proposed activities during the 2019/20 financial year.

8. SUPPLY CHAIN MANAGEMENTList of unsolicited bid proposals concluded for the year under review

Any unsolicited bids received would have been dealt with in terms of the National Treasury Practice Note on unsolicited bids, however there were no unsolicited bids received during this reporting period.

List whether SCM processes are in place to prevent irregular expenditure

The Department has finalised the approved SCM Policy and Procedure Manual and workshopped it across all



Regional Offices and Head Office.

The department further developed a SCM Compliance System which was implemented in May 2020. The SCM Compliance System requires the SCM Pratcitioners to complete and automated checklist when undertaking a procurement transaction which ensures that all required procedures have been implemented prior to allowing an Order Approval to be finalised.

Challenges experienced in SCM and how they were resolved

Human Resource Structure shortcomings were noted in Head Office as well as Regional and Cost Centre offices. The department has finalised the organisational restructuring process and this has been forwarded to DPSA for approval. The post of Director: Supply Chain Management was filled with the new incumbent commencing duty from the 1st of February 2019 however there are still capacity challenges within the SCM Directorate, and the department has requested the Provincial Treasury to appoint additional capacity from their Panel.

9. GIFTS AND DONATIONS RECEIVED IN KIND FROM NON-RELATED PARTIES The Department did not receive any donations in cash or in kind from non-related parties for the 2019/20 financial year.

10. EXEMPTIONS AND DEVIATIONS RECEIVED FROM THE NATIONAL TREASURY The department did not receive any exemptions for the 2019/20 financial year.

11. EVENTS AFTER THE REPORTING DATE There are no significant events that occurred after the reporting date which will influence the interpretation of

the results under review.

12. OTHER There is no other material fact or circumstances, which may influence the understanding of the financial that is

not addressed elsewhere in this department.

13. CONCLUSION The attached Annual Financial Statements have been approved by the Accounting Officer.

______________________________

ACTING ACCOUNTING OFFICERNAME: MS. S. NGUBODATE: 31 JULY 2020



PART E:

KW

AZU

LU-N

ATA

L: T

RA

NSP

OR

T

App

ropr

iatio

n St

atem

ent

for t

he y

ear e

nded

31

Mar

ch 2

020

App

ropr

iatio

n pe

r pro

gram

me

2019

/20

2018

/19

Vote

d fu

nds

and

Dire

ct

char

ges

R’0

00

Adj

uste

d A

ppro

pria

tion

Shi

fting

of

Fund

s V

irem

ent

Fin

al

App

ropr

iatio

n A

ctua

l Ex

pend

iture

V

aria

nce

Expe

nditu

re

as %

of fi

nal

appr

opria

tion

Fin

al

App

ropr

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n A

ctua

l Ex

pend

iture

R’0

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’000

R’0

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R’0

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Pr

ogra

mm

e

1.A

DM

INIS

TRAT

ION

412

788

-

29 3

24

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112

4

34 0

37

8 0

75

98,2

%

39

1 94

5

391

945

2.TR

AN

SPO

RT

INFR

AST

RU

CTU

RE

7 82

7 23

4

-

(74

548)

7 7

52 6

86

6 1

15 4

22

1 6

37 2

64

78,9

%7

339

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7 1

02 7

27

3.TR

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1

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1

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16

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1 89

1 30

3

1

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303

4.TR

AN

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-

(24

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85

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1

0 32

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10 9

69 5

45

-

-

10

969

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9 3

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329

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Rec

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dd:

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3 56

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N

RF

Rec

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A

id a

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e

-

-

APPROPRIATION STATEMENT for the year ended 31 March 2020


Act

ual a

mou

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tate

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(Tot

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In

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

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

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

Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.3 Detail on payments for financial assets

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

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

4,1 Per programme:

Actual Expenditure

Variance Variance as a %

of Final Approp.

R’000 R’000 %

Administration 434 037 8 075 98% Transport Infrastructure 6 115 422 1 637 264 79% Transport Operations 1 812 121 169 100% Transport Regulations 926 398 3 100%Community Based Programmes 29 594 6 462 82%

Programme 2: Transport Infrastructure shows net under-expenditure of R1.614 billion as follows: • Slower than anticipated filling of critical vacant posts attributed to lengthy internal recruitment processes, difficulty in finding suitable candidates, staff exits as well as internal promotions which resulted in further vacancies. • Slow progress with maintenance projects in respect of betterment and gravelling, as well as blading of gravel roads due to the suspension of the Vukuzakhe Emerging Contractor Development Programme used by the department to undertake maintenance projects that resulted from the programme’s non-compliance with Preferential Procurement Policy Framework Act (PPPFA). The department then suspended the programme enable a review into the policy to align the programme to the Construction Industry Development Board (CIDB) and the National Contractor Developing Programme Framework and Guidelines to make it compliant with the PPPFA. • Capital construction projects were significantly underspent as a result of contracts that were terminated due to non-performance by contractors, change in the scope of work due to additional earthworks needed to be done as a result of changes in designs during construction, delays in the awarding of contracts due to SCM related challenges such as large volumes of bid applications and tender appeals, as well as contractors facing financial difficulties and thus not delivering on project milestones. The following are some of the projects affected: • A roll-over of funds into the 2020/21 financial year has been requested in that regard.

Programme name

Programme 3: Transport Operations reflects a net amount of R169 000 against this Programme resulting from savings associated with the non-filling of posts such as computer equipment and office furniture.

Programme name

Programme 5: Community Based Programme shows net under-expenditure of R6.462 million due to the ongoing review of the Vukuzakhe Emerging Contractor Development Programme, as such the mentorship programme for the emerging contractors that was not undertaken.(In the case of surpluses on programmes, a detailed explanation must be given as to whether it is as a result of a saving or underspending.)

NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March 2020


NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March 2020

4,2 Per economic classification:Final

AppropriationActual

Expenditure VarianceVariance as a % of Final Approp.

R’000 R’000 R’000 %

Current expenditure

Compensation of employees 1 503 730 1 503 726 4 100%

Goods and services 4 334 128 4 148 340 185 788 96%

Interest and rent on land 0 0 0 0%

Transfers and subsidies

Provinces and municipalities 5 905 5 904 1 100%

Departmental agencies and accounts 5 251 5 251 0 100%

Higher education institutions 0 0 0 0%

Public corporations and private enterprises 0 0 0 0%

Foreign governments and international organisations

0 0 0 0%

Non-profit institutions 3 007 3 007 0 100%

Households 16 537 16 534 3 100%

Payments for capital assets

Buildings and other fixed structures 3 431 484 1 965 472 1 466 012 57%

Machinery and equipment 285 404 285 240 164 100%

Heritage assets 0 0 0 0%

Specialised military assets 0 0 0 0%

Biological assets 0 0 0 0%

Land and subsoil assets 0 0 0 0%

Software and other intangible assets 1 119 1 119 0 100%

Payments for financial assets 883 883 0 100%

Explanation of variance

4,3 Per conditional grantFinal

AppropriationActual

Expenditure VarianceVariance as a % of Final Approp.

R’000 R’000 R’000 %

Provincial Roads Maintenance Grant 1 882 781 1 882 781

- 100%

Public Transport Operations Grant 1 168 099 1 168 099

- 100%

EPWP Incentive Grant 71 677 74 146

- 100%

Explanation of variance


STATEMENT OF FINANCIAL PERFORMANCEfor the year ended 31 March 2020

2019/20 2018/19 Note R’000 R’000

REVENUEAnnual appropriation 1 10 969 545 10 565 677 Statutory appropriation 2 - - Departmental revenue 3 1 987 394 1 913 566 NRF Receipts - - Aid assistance - -

TOTAL REVENUE 12 956 939 12 479 243

EXPENDITURECurrent expenditureCompensation of employees 5 1 503 725 1 428 296 Goods and services 6 4 171 688 4 321 389 Interest and rent on land 7 - - Aid assistance 4 6 633 - Total current expenditure 5 682 046 5 749 685

Transfers and subsidiesTransfers and subsidies 9 1 412 792 1 416 712 Aid assistance 4 - - Total transfers and subsidies 1 412 792 1 416 712

Expenditure for capital assetsTangible assets 10 2 228 484 3 126 181 Intangible assets 10 - 39 344 Total expenditure for capital assets 2 228 484 3 165 525

Unauthorised expenditure approved without funding 11 - -

Payments for financial assets 8 883 2 385

TOTAL EXPENDITURE 9 324 205 10 334 307

SURPLUS/(DEFICIT) FOR THE YEAR 3 632 734 2 144 936

Reconciliation of Net Surplus/(Deficit) for the yearVoted Funds 1 651 973 236 311

Annual appropriation 1 651 973 233 842 Conditional grants - 2 469

Departmental revenue and NRF Receipts 19 1 987 394 1 913 566 Aid assistance 4 -6 633 -4 941 SURPLUS/(DEFICIT) FOR THE YEAR 3 632 734 2 144 936


STATEMENT OF FINANCIAL POSITIONfor the year ended 31 March 2020

2019/20 2018/19 Note R’000 R’000

ASSETS

Current Assets 330 399 455 280 Unauthorised expenditure 11 - - Cash an cash equivalents 12 246 028 368 828 Other financial assets 13 - - Prepayments and advances 14 826 836 Receivables 15 83 545 85 616 Loans 17 - - Aid assistance prepayments 4 - - Aid assistance receivable 4 - -

Non-Current Assets 3 880 4 305 Investments 16 - - Receivables 15 3 880 4 305 Loans 17 - - Other financial assets 13 - -

TOTAL ASSETS 334 279 459 585

LIABILITIES

Current Liabilities 330 230 455 825 Voted funds to be surrendered to the Revenue Fund 18 151 973 236 311 Departmental revenue and NRF Receipts to be surrendered

to the Revenue Fund 19 143 495 177 699 Bank overdraft 20 - - Payables 21 28 832 29 252 Aid assistance repayable 4 - - Aid assistance unutilised 4 5 930 12 563

Non-Current LiabilitiesPayables 22 - -

TOTAL LIABILITIES 330 230 455 825

NET ASSETS 4 049 3 760

Represented by:Capitalisation reserve - - Recoverable revenue 4 049 3 760 Retained funds - - Revaluation reserves - -

TOTAL 4 049 3 760


STATEMENT OF CHANGE IN ASSETSfor the year ended 31 March 2020

NET ASSETS 2019/20 2018/19 Note R’000 R’000

Capitalisation ReservesOpening balance - - Transfers: Movement in Equity - - Movement in Operational Funds - - Other movements - - Closing balance - -

Recoverable revenueOpening balance 3 760 3 384 Transfers 289 376 Irrecoverable amounts written off 8,3 883 -417 Debts revised -

Debts recovered (included in departmental receipts) -1 985 151 Debts raised 1 391 642 Closing balance 4 049 3 760

Retained fundsOpening balance - -

Transferred from voted funds to be surrendered (Parliament/Legislatures ONLY) - Utilised during the year - Other - Closing balance - -

Revaluation ReservesOpening balance - - Revaluation adjustment (Housing departments) - Transfers - Other - Closing balance - -

TOTAL 4 049 3 760


CASH FLOW STATEMENTfor the year ended 31 March 2020

2019/20 2018/19 Note R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIESReceipts 11 453 009 12 479 209

Annual appropriated funds received 1,1 9 469 545 10 565 677 Statutory appropriated funds received 2 - - Departmental revenue received 3 1 983 455 1 913 516 Interest received 3,3 9 16 NRF Receipts - - Aid assistance received 4 - -

Net (increase)/ decrease in working capital 1 661 -3 020 Surrendered to Revenue Fund -2 261 648 -2 124 744 Surrendered to RDP Fund/Donor - - Current payments -5 682 046 -5 749 685 Interest paid 7 - - Payments for financial assets -883 -2 385 Transfers and subsidies paid -1 412 792 -1 416 712 Net cash flow available from operating activities 23 2 097 301 3 182 663

CASH FLOWS FROM INVESTING ACTIVITIESDistribution/dividend received 35 34 Payments for capital assets 10 -2 228 484 -3 165 525 Proceeds from sale of capital assets 3,4 3 895 - (Increase)/ decrease in loans - - (Increase)/ decrease in investments - - (Increase)/ decrease in other financial assets - - (Increase)/decrease in non-current receivables 425 - Net cash flows from investing activities -2 224 129 -3 165 491

CASH FLOWS FROM FINANCING ACTIVITIESIncrease/ (decrease) in net assets 289 376 Increase/ (decrease) in non-current payables - - Net cash flows from financing activities 289 376

Net increase/ (decrease) in cash and cash equivalents -126 539 17 548

Cash and cash equivalents at beginning of period 368 828 351 280 Unrealised gains and losses within cash and cash equivalents 3 739 - Cash and cash equivalents at end of period 24 246 028 368 828


ACCOUNTING POLICIESfor the year ended 31 March 2020

Summary of significant accounting policies [Concepts and Principles, Financial Statement Presentation]The financial statements have been prepared in accordance with the following policies, which have been applied con-sistently in all material aspects, unless otherwise indicated. Management has concluded that the financial statements present fairly the department’s primary and secondary information. The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation.Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the finan-cial statements and to comply with the statutory requirements of the Public Finance Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act.

1 BASIS OF PREPARATION

The financial statements have been prepared in accordance with the Modified Cash Standard.

2 GOING CONCERN

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

3 PRESENTATION CURRENCY

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

4 ROUNDING

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

5 FOREIGN CURRENCY TRANSLATION

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

6 COMPARATIVE INFORMATION

6.1 PRIOR PERIOD COMPARATIVE INFORMATION

Prior period comparative information has been presented in the current year’s financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format of the current year’s financial statements.

6.2 CURRENT YEAR COMPARISON WITH BUDGET

A comparison between the approved, final budget and actual amounts for each programme and economic classifica-tion is included in the appropriation statement.

7 REVENUE

7.1 APPROPRIATED FUNDS

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


7.2 DEPARTMENTAL REVENUE

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

7.3 ACCRUED DEPARTMENTAL REVENUE

Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the financial state-ments when:• it is probable that the economic benefits or service potential associated with the transaction will flow to the depart-

ment; and• the amount of revenue can be measured reliably.The accrued revenue is measured at the fair value of the consideration receivable.Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents.Write-offs are made according to the department’s debt write-off policy

8 EXPENDITURE

8.1 COMPENSATION OF EMPLOYEES

8.1.1 SALARIES AND WAGES

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

8.1.2 SOCIAL CONTRIBUTIONS

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

8.2 OTHER EXPENDITURE

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

8.3 ACCRUALS AND PAYABLES NOT RECOGNISED [General Departmental Assets and Liabilities]Accruals and payables not recognised are recorded in the notes to the financial statements at cost at the reporting date.

8.4 LEASES

8.4.1 OPERATING LEASES

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

8.4.2 FINANCE LEASES

Finance lease payments made during the reporting period are recognised as capital expenditure in the statement of financial performance on the date of payment.The finance lease commitments are recorded in the notes to the financial statements and are not apportioned be-tween the capital and interest portions. Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of:• cost, being the fair value of the asset; or• the sum of the minimum lease payments made, including any payments made to acquire ownership at the end




of the lease term, excluding interest.

9 AID ASSISTANCE

9.1 AID ASSISTANCE RECEIVED[Revenue, General Departmental Assets and Liabilities]Aid assistance received in cash is recognised in the statement of financial performance when received. In-kind aid as-sistance is recorded in the notes to the financial statements on the date of receipt and is measured at fair value.Aid assistance not spent for the intended purpose and any unutilised funds from aid assistance that are required to be refunded to the donor are recognised as a payable in the statement of financial position.

9.2 AID ASSISTANCE PAID

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

10 CASH AND CASH EQUIVALENTS

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

11 PREPAYMENTS AND ADVANCES

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

12 LOANS AND RECEIVABLES

Loans and receivables are recognised in the statement of financial position at cost plus accrued interest, where interest is charged, less amounts already settled or written-off. Write-offs are made according to the department’s write-off policy.

13 INVESTMENTS

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

14 FINANCIAL ASSETS

14.1 FINANCIAL ASSETS (NOT COVERED ELSEWHERE)

A financial asset is recognised initially at its cost plus transaction costs that are directly attributable to the acquisition or issue of the financial asset.At the reporting date, a department shall measure its financial assets at cost, less amounts already settled or writ-ten-off, except for recognised loans and receivables, which are measured at cost plus accrued interest, where interest is charged, less amounts already settled or written-off.

14.2 IMPAIRMENT OF FINANCIAL ASSETS

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

15 PAYABLES[General Departmental Assets and Liabilities]Payables recognised in the statement of financial position are recognised at cost.


16 CAPITAL ASSETS

16.1 IMMOVABLE CAPITAL ASSETS

Immovable assets reflected in the asset register of the department are recorded in the notes to the financial state-ments at cost or fair value where the cost cannot be determined reliably. Immovable assets acquired in a non-exchange transaction are recorded at fair value at the date of acquisition. Immovable assets are subsequently carried in the asset register at cost and are not currently subject to depreciation or impairment.Subsequent expenditure of a capital nature forms part of the cost of the existing asset when ready for use.Additional information on immovable assets not reflected in the assets register is provided in the notes to financial statements.

16.2 MOVABLE CAPITAL ASSETS

Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition. Where the cost of movable capital assets cannot be determined reliably, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.Biological assets are subsequently carried at fair value. Subsequent expenditure that is of a capital nature forms part of the cost of the existing asset when ready for use.

16.3 INTANGIBLE ASSETS

Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition. Internally generated intangible assets are recorded in the notes to the financial statements when the department com-mences the development phase of the project. Where the cost of intangible assets cannot be determined reliably, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.Subsequent expenditure of a capital nature forms part of the cost of the existing asset when ready for use.

16.4 PROJECT COSTS: WORK-IN-PROGRESS

Expenditure of a capital nature is initially recognised in the statement of financial performance at cost when paid. Amounts paid towards capital projects are separated from the amounts recognised and accumulated in work-in-prog-ress until the underlying asset is ready for use. Once ready for use, the total accumulated payments are recorded in an asset register. Subsequent payments to complete the project are added to the capital asset in the asset register. Where the department is not the custodian of the completed project asset, the asset is transferred to the custodian subsequent to completion.

17 PROVISIONS AND CONTINGENTS

17.1 PROVISIONS

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

17.2 CONTINGENT LIABILITIES

Contingent liabilities are recorded in the notes to the financial statements when there is a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department or when there is a present obligation that is



not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably.

17.3 CONTINGENT ASSETS

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

17.4 COMMITMENTS

Commitments (other than for transfers and subsidies) are recorded at cost in the notes to the financial statements when there is a contractual arrangement or an approval by management in a manner that raises a valid expectation that the department will discharge its responsibilities thereby incurring future expenditure that will result in the out-flow of cash.

18 UNAUTHORISED EXPENDITURE

Unauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either:• approved by Parliament or the Provincial Legislature with funding and the related funds are received; or• approved by Parliament or the Provincial Legislature without funding and is written off against the appropriation in

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

19 FRUITLESS AND WASTEFUL EXPENDITURE

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

20 IRREGULAR EXPENDITURE

Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the value of the irregular expenditure incurred unless it is impracticable to determine, in which case reasons therefor are provided in the note. Irregular expenditure is removed from the note when it is either condoned by the relevant authority, transferred to receivables for recovery or not condoned and is not recoverable. Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-rec-ognised when settled or subsequently written-off as irrecoverable.

21 CHANGES IN ACCOUNTING POLICIES, ACCOUNTING ESTIMATES AND ERRORS

Changes in accounting policies that are effected by management have been applied retrospectively in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumu-lative effect of the change in policy. In such instances the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.Changes in accounting estimates are applied prospectively in accordance with MCS requirements.Correction of errors is applied retrospectively in the period in which the error has occurred in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the error. In such cases the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.



22 EVENTS AFTER THE REPORTING DATE

Events after the reporting date that are classified as adjusting events have been accounted for in the financial state-ments. The events after the reporting date that are classified as non-adjusting events after the reporting date have been disclosed in the notes to the financial statements.

23 PRINCIPAL-AGENT ARRANGEMENTS

The department is party to a principal-agent arrangement for [include details here]. In terms of the arrangement the department is the [principal / agent] and is responsible for [include details here]. All related revenues, expenditures, assets and liabilities have been recognised or recorded in terms of the relevant policies listed herein. Additional disclo-sures have been provided in the notes to the financial statements where appropriate.

25 CAPITALISATION RESERVEThe capitalisation reserve comprises of financial assets and/or liabilities originating in a prior reporting period but which are recognised in the statement of financial position for the first time in the current reporting period. Amounts are recognised in the capitalisation reserves when identified in the current period and are transferred to the National/Provincial Revenue Fund when the underlying asset is disposed and the related funds are received.

26 RECOVERABLE REVENUEAmounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recov-erable from a debtor in the current financial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off.

27 RELATED PARTY TRANSACTIONS

A related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party. Related party transactions within the MEC’s portfolio are recorded in the notes to the financial statements when the transaction is not at arm’s length. Key management personnel are those persons having the authority and responsibility for planning, directing and con-trolling the activities of the department. The number of individuals and their full compensation is recorded in the notes to the financial statements.

28 INVENTORIES (EFFECTIVE FROM DATE DETERMINED IN A TREASURY INSTRUCTION)

At the date of acquisition, inventories are recognised at cost in the statement of financial performance.Where inventories are acquired as part of a non-exchange transaction, the inventories are measured at fair value as at the date of acquisition.Inventories are subsequently measured at the lower of cost and net realisable value or where intended for distribution (or consumed in the production of goods for distribution) at no or a nominal charge, the lower of cost and current replacement value.The cost of inventories is assigned by using the weighted average cost basis.

29 PUBLIC-PRIVATE PARTNERSHIPS

Public Private Partnerships are accounted for based on the nature and or the substance of the partnership. The trans-action is accounted for in accordance with the relevant accounting policies.A summary of the significant terms of the PPP agreement, the parties to the agreement, and the date of commence-ment thereof together with the description and nature of the concession fees received, the unitary fees paid, rights and obligations of the department are recorded in the notes to the financial statements.

30 EMPLOYEE BENEFITS

[Provisions and Contingents]The value of each major class of employee benefit obligation (accruals, payables not recognised and provisions) is dis-closed in the Employee benefits note.



NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020

1

1,1 Annual Appropriation 2019/20 2018/19

Final Appropriation

Actual Funds

Received

Funds not requested/

not received

Final Appropriation

Appropriation Received

Programmes R’000 R’000 R’000 R’000 R’000

ADMINISTRATION 412 788 412 788 - 391 945 391 945

TRANSPORT INFRASTRUCTURE 7 827 234 6 327 234 1 500 000 7 339 038 7 339 038

TRANSPORT OPERATIONS 1 739 396 1 739 396 - 1 891 303 1 891 303

TRANSPORT REGULATION 950 936 950 936 - 890 785 890 785

COMMUNITY BASED PROGRAMMES 39 191 39 191 - 52 606 52 606

Total 10 969 545 9 469 545 1 500 000 10 565 677 10 565 677

Provide an explanation for funds not requested/not received

During the 2019-20 the department has underspent on its allocated budget hence Provincial Treasury did not transfer the full allocation.

2019/20 2018/19

Note R’000 R’000

1,2 Conditional grants**

Total grants received 47 3 125 026 3 009 461

Provincial grants included in Total Grants received - -

( It should be noted that the Conditional grants are included in the amounts per the Final Appropriation in Note 1.1)

2019/20 2018/19

R’000 R’000

2 Statutory Appropriation

Actual Statutory Appropriation received

-

-

2019/20 2018/19

Note R’000 R’000

3 Departmental Revenue

Tax revenue 1 866 422 1 763 535

Sales of goods and services other than capital assets 3,1 89 345 105 916

Fines, penalties and forfeits 3,2 24 687 40 353

Interest, dividends and rent on land 3,3 103 69

Sales of capital assets 3,4 3 895 -

Transactions in financial assets and liabilities 3,5 2 942 3 693

Transfer received 3,6 - -

Total revenue collected 1 987 394 1 913 566

Less: Own revenue included in appropriation 19 - -

Departmental revenue collected 1 987 394 1 913 566



2019/20 2018/19

Note R’000 R’000

3,1Sales of goods and services other than capital assets 3

Sales of goods and services produced by the department 89 345 105 916

Sales by market establishment 5 974 6 110

Administrative fees 78 396 94 574

Other sales 4 975 5 232

Sales of scrap, waste and other used current goods - -

Total 89 345 105 916

2019/20 2018/19

Note R’000 R’000

3,2 Fines, penalties and forfeits 3

Fines 24 687 40 353

Penalties - -

Forfeits - -

Total 24 687 40 353

2019/20 2018/19

Note R’000 R’000

3,3 Interest, dividends and rent on land 3

Interest 9 16

Dividends 35 34

Rent on land 59 19

Total 103 69

2019/20 2018/19

Note R’000 R’000

3,4 Sales of capital assets 3

Tangible assets 3 895 -

Buildings and other fixed structures 41 - -

Machinery and equipment 39 3 895 -

Heritage assets 39 - -

Specialised military assets 39 - -

Land and subsoil assets 41 - -

Biological assets 39 - -

Intangible assets - -

Software 40 - -

Mastheads and publishing titles 40 - -

Patents, licences, copyright, brand names, trademarks 40 - -

Recipes, formulae, prototypes, designs, models 40

-

-

Services and operating rights 40 - -

Total 3 895 -



2019/20 2018/19

Note R’000 R’000

3,5 Transactions in financial assets and liabilities 3

Loans and advances - -

Receivables - -

Forex gain - -

Stale cheques written back - 20

Other Receipts including Recoverable Revenue

2 942 3 673

Gains on GFECRA - -

Total 2 942 3 693

2019/20 2018/19

Note R’000 R’000

3,6 Transfers received 3

Other governmental units - -

Higher education institutions - -

Foreign governments - -

International organisations - -

Public corporations and private enterprises - -

Households and non-profit institutions - -

Total - -

3,7Cash received not recognised (not included in the main note) - 2019/20

Name of entity Amount received

Amount paid to

Revenue Fund Balance

R’000 R’000 R’000

-

-

-

-

-

-

-

-

-

Total -

-

-

Cash received not recognised (not included in the main note) - 2018/19

Name of entity Amount received

Amount paid to

Revenue Fund Balance

R’000 R’000 R’000

- - -

- - -

Total - - -



2019/20 2018/19

Note R’000 R’000

4 Aid Assistance

Opening Balance 12 563 17 504

Prior period error -

As restated 12 563 17 504

Transferred from statement of financial performance -6 633 -4 941

Transferred to/from retained funds

-

-

Paid during the year - -

Closing Balance 5 930 12 563

2019/20 2018/19

Note R’000 R’000

4,1 Analysis of balance by source 4

Aid assistance from RDP - -

Aid assistance from other sources 5 930 12 563

CARA - -

Closing Balance 5 930 12 563

2019/20 2018/19

Note R’000 R’000

4,2 Analysis of balance

Aid assistance receivable - -

Aid assistance prepayments (Not expensed) - -

Aid assistance unutilised 5 930 12 563

Aid assistance repayable - -

Closing balance 4 5 930 12 563

Aid assistance not requested/not received - -

4.2.1 Aid assistance prepayments (expensed) - 2019/20

Amount as at 1 April

2019

Less: Received in the current

year

Add/Less: Other

Add: Current Year prepayments

Amount as at 31 March

2020

R’000 R’000 R’000 R’000 R’000

Goods and services - - - - -

Interest and rent on land - - - - -

Transfers and subsidies - - - - -

Capital assets - - - - -

Other - -

-

-

-

Closing balance - -

-

-

-



Aid assistance prepayments (expensed) - 2018/19

Amount as at 1 April

2018


year

Add/Less: Other

Add: Current Year prepayments

Amount as at 31 March

2019

R’000 R’000 R’000 R’000 R’000





Other - - - - -

Closing balance - - - - -

4,3 Prior period error Note 2018/19

R’000

Nature of prior period error

Relating to 20WW/XX (affecting the opening balance) -

-

Relating to 2018/19 -

-

-

-

Total prior period errors -

2019/20 2018/19

Note R’000 R’000

4,4 Aid assistance expenditure per economic classification

Current 6 633

-

Capital 10 - 4 941

Transfers and subsidies - -

Total aid assistance expenditure 6 633 4 941

2019/20 2018/19

Note R’000 R’000

5Compensation of Employees

5,1 Salaries and wages

Basic salary 930 892 876 714

Performance award 25 419 25 205

Service Based 5 409 3 074

Compensative/circumstantial 142 075 130 072

Periodic payments 18 540 21 528

Other non-pensionable allowances 176 213 178 076

Total 1 298 548 1 234 669



2019/20 2018/19

Note R’000 R’000

5,2 Social Contributions

Employer contributions

Pension 110 292 105 065

Medical 94 057 87 900

UIF 37 74

Bargaining council 357 339

Official unions and associations - -

Insurance 434 249

Total 205 177 193 627

Total compensation of employees 1 503 725 1 428 296

Average number of employees 3 955 3 966

2019/20 2018/19

Note R’000 R’000

6 Goods and services

Administrative fees 2 098 3 484

Advertising 7 848 7 732

Minor assets 6,1 2 721 4 689

Bursaries (employees) 1 045 958

Catering 3 551 5 901

Communication 31 963 29 312

Computer services 6,2 190 316 169 528

Consultants: Business and advisory services 17 744 234 017

Infrastructure and planning services 859 108 375 413

Laboratory services 161 170

Scientific and technological services - -

Legal services 19 576 21 972

Contractors 1 982 804 2 384 877

Agency and support / outsourced services 2 596 4 451

Entertainment - -

Audit cost – external 6,3 14 213 27 757

Fleet services 232 670 198 304

Inventory 6,4 116 552 99 503

Consumables 6,5 27 425 34 443

Housing

-

-

Operating leases 57 028 58 123

Property payments 6,6 163 008 176 939

Rental and hiring 876 1 197

Transport provided as part of the departmental activities 350 273 395 870

Travel and subsistence 6,7 58 981 72 628

Venues and facilities 11 591 5 141

Training and development 10 203 4 537

Other operating expenditure 6,8 7 337 4 443

Total 4 171 688 4 321 389



2019/20 2018/19

Note R’000 R’000

6,1 Minor assets 6

Tangible assets 2 721 4 689

Buildings and other fixed structures - -

Biological assets - -

Heritage assets - -

Machinery and equipment 2 721 4 689

Transport assets - -

Specialised military assets - -

Intangible assets - -

Software - -

Mastheads and publishing titles - -

Patents, licences, copyright, brand names, trademarks - -

Recipes, formulae, prototypes, designs, models - -

Services and operating rights - -

Total 2 721 4 689

2019/20 2018/19

Note R’000 R’000

6,2 Computer services 6

SITA computer services 23 896 23 429

External computer service providers 166 420 146 099

Total 190 316 169 528

2019/20 2018/19

Note R’000 R’000

6,3 Audit cost – external 6

Regularity audits 5 814 8 814

Performance audits - -

Investigations 4 670 18 052

Environmental audits - -

Computer audits 3 729 891

Total 14 213 27 757

2019/20 2018/19

Note R’000 R’000

6,4 Inventory 6

Clothing material and accessories 9 604 7 333

Farming supplies -

-

Food and food supplies 387

449

Fuel, oil and gas 84 932 73 835

Learning and teaching support material

-

-

Materials and supplies 21 629 17 886

Medical supplies - -



Medicine - -

Medsas inventory interface -

-

Other supplies 6.4.1 - -

Total 116 552 99 503

6.4.1 Other Supplies

Ammunition and security supplies - -

Assets for distribution - -

Machinery and equipment - -

School furniture - -

Sports and recreation - -

Library material - -

Other assets for distribution - -

Other - -

Total - -

2019/20 2018/19

Note R’000 R’000

6,5 Consumables 6

Consumable supplies 4 445 9 366

Uniform and clothing 674 4 921

Household supplies 3 375 2 940

Building material and supplies

-

-

Communication accessories 17 -

IT consumables 266 917

Other consumables 113 588

Stationery, printing and office supplies 22 980 25 077

Total 27 425 34 443

2019/20 2018/19

Note R’000 R’000

6,6 Property payments 6

Municipal services 35 727 35 360

Property management fees - -

Property maintenance and repairs 51 975 76 712

Other 75 306 64 867

Total 163 008 176 939

2019/20 2018/19

Note R’000 R’000

6,7 Travel and subsistence 6

Local 58 657 72 445

Foreign 324 183

Total 58 981 72 628



2019/20 2018/19

Note R’000 R’000

6,8 Other operating expenditure 6

Professional bodies, membership and subscription fees

-

-

Resettlement costs 302 1 014

Other 7 035 3 429

Total 7 337 4 443

2019/20 2018/19

Note R’000 R’000

7 Interest and Rent on Land

Interest paid - -

Rent on land - -

Total - -

2019/20 2018/19

Note R’000 R’000

8 Payments for financial assets

Material losses through criminal conduct - 1 968

Theft 8,4 - 1 968

Other material losses 8,1 - -

Purchase of equity - -

Extension of loans for policy purposes - -

Other material losses written off 8,2 - -

Debts written off 8,3 883 417

Forex losses 8,5 - -

Debt take overs - -

Losses on GFECRA - -

Total 883 2 385

2019/20 2018/19

Note R’000 R’000

8,1 Other material losses 8

Nature of other material losses

(Group major categories, but list material items)

IncidentDisciplinary Steps taken/ Criminal proceedings

-

-

-

Total - -



2019/20 2018/19

Note R’000 R’000

8,2Other material losses written off 8

Nature of losses


-

-

-

Total

-

-

2019/20 2018/19

Note R’000 R’000

8,3 Debts written off 8

Nature of debts written off

(Group major categories, but list material items: (debt written off relating to irregular expenditure, debt written off relating to recoverable revenue and other debts written off must be listed.)

Irregular expenditure written off

-

Total

-

-

Recoverable revenue written off

-

-

-

Total - -

Other debt written off

Employee Debt

355

150

-

Zibambele

528

267

-

Total 883 417



Total debt written off 883 417

2019/20 2018/19

Note R’000 R’000

8,4 Details of theft 8

Nature of theft


Fraudulent payment (2004-2005)

- 1 968

-

Total - 1 968

2019/20 2018/19

Note R’000 R’000

8,5 Forex losses 8

Nature of losses


-

-

Total -

-

2019/20 2018/19

Note R’000 R’000

9 Transfers and Subsidies

Provinces and municipalities 48, 49 5 904 6 172

Departmental agencies and accounts

ANNEX-URE 1A 5 251 4 564

Higher education institutions

-

-

Foreign governments and international organisations

-

-

Public corporations and private enterprises

ANNEX-URE 1B 1 382 096 1 390 894

Non-profit institutions ANNEX-URE 1C 3 006

-

Households ANNEX-URE 1D 16 535 15 082

Total 1 412 792 1 416 712


2019/20 2018/19

Note R’000 R’000

10 Expenditure for capital assets

Tangible assets 2 228 484 3 126 181

Buildings and other fixed structures 41 1 943 241 2 935 171

Heritage assets39,41

-

-

Machinery and equipment 39 285 243 191 010

Specialised military assets39

-

-

Land and subsoil assets41

-

-

Biological assets39

-

-

Intangible assets40

- 39 344

Software -

-

Mastheads and publishing titles -

-

Patents, licences, copyright, brand names, trademarks

- 39 344

Recipes, formulae, prototypes, designs, models -

-

Services and operating rights -

-

Total 2 228 484 3 165 525

The following amounts have been included as project costs in Expenditure for capital assets:

Compensation of employees -

-

Goods and services 16 577 37 094

Total 16 577 37 094

10,1Analysis of funds utilised to acquire capital assets - 2019/20

Voted Funds

Aid assistance TOTAL

R’000 R’000 R’000

Tangible assets2 228 484

- 2 228 484

Buildings and other fixed structures 1 943 241

- 1 943 241

Heritage assets -

-

-

Machinery and equipment 285 243 - 285 243

Specialised military assets -

-

-

Land and subsoil assets -

-

-

Biological assets -

-

-



Intangible assets -

-

-

Software -

-

-

Mastheads and publishing titles

-

-

-


-

-

-

Recipes, formulae, prototypes, designs, models

-

-

-

Services and operating rights

-

-

-

Total 2 228 484 - 2 228 484

10,2Analysis of funds utilised to acquire capital assets - 2018/19

Voted Funds

Aid assistance TOTAL

R’000 R’000 R’000

Tangible assets3 121 240 4 941

3 126 181

Buildings and other fixed structures 2 935 171

- 2 935 171

Heritage assets -

-

-

Machinery and equipment 186 069 4 941 191 010


-

-


-

-

Biological assets -

-

-

Intangible assets 39 344

- 39 344

Software -

-

-


-

-

-


39 344

- 39 344


-

-

-


-

-

-

-

-

Total 3 160 584 4 941 3 165 525



2019/20 2018/19

10,3Finance lease expenditure included in Expenditure for capital assets R’000 R’000

Tangible assets

Buildings and other fixed structures

-

Heritage assets -

Machinery and equipment -



Biological assets -

Total - -


2019/20 2018/19

Note R’000 R’000

11Unauthorised Expenditure

11,1Reconciliation of unauthorised expenditure

Opening balance

- -

Prior period error 11,5 -

As restated

- -

Unauthorised expenditure - discovered in the current year (as restated)

- -

Less: Amounts approved by Parliament/Legislature with funding

- -

Less: Amounts approved by Parliament/Legislature without funding and derecognised

- -

Current - -

Capital - -


-

Less: Amounts recoverable 15 - -

Less: Amounts written off - -

Closing balance - -

Analysis of closing balance R’000 R’000

Unauthorised expenditure awaiting authorisation

- -

Unauthorised expenditure approved without funding and not derecognised

- -

Total

- -



2019/20 2018/19

11,2Analysis of unauthorised expenditure awaiting authorisation per economic classification R’000 R’000

Current - -

Capital - -


Total - -

2019/20 2018/19

11,3Analysis of unauthorised expenditure awaiting authorisation per type

R’000 R’000

Unauthorised expenditure relating to overspending of the vote or a main division within the vote

- -

Unauthorised expenditure incurred not in accordance with the purpose of the vote or main division

- -

Total - -

11,4Details of unauthorised expenditure - current year 2019/20

Incident Disciplinary steps taken/criminal

proceedings R’000

Total -


R’000



-


-

Total -

2019/20 2018/19

Note R’000 R’000

12Cash and Cash Equivalents

Consolidated Paymaster General Account 243 431 366 407

Cash receipts 2 569 2 393

Disbursements - -

Cash on hand 28 28

Investments (Domestic) - -

Investments (Foreign) - -

Total 246 028 368 828



2019/20 2018/19

Note R’000 R’000

13 Other Financial Assets

Current

Local

- -

Total - -

Foreign

Total - -

Total Current other financial assets

- -

2019/20 2018/19

Note R’000 R’000

Non-Current

Local

- -

Total -

-

Foreign

- -

Total - -

Total Non-Current other financial assets

- -

2019/20 2018/19

Note R’000 R’000

14Prepayments and Advances

Staff advances - -

Travel and subsistence 826 836

Prepayments (Not expensed) 14,2

- -

Advances paid (Not expensed) 14,1

- -

SOCPEN advances

- -

Total 826 836



14,1Advances paid (Not expensed)

Note

Balance as at 1 April 2019

Less: Amount

expensed in current year

Add/Less: Other

Add: Current

Year advances

Balance as at 31 March 2020

14 R’000 R’000 R’000 R’000 R’000

National departments-

- - - -

Provincial departments-

- - - -

Public entities-

- - - -

Other institutions

- -

- - -

Total-

- - - -

Note


Less: Amount


Add/Less: Other

Add: Current

Year advances


Advances paid (Not expensed) 14 R’000 R’000 R’000 R’000 R’000

National departments - - - - -

Provincial departments - - - - -

Public entities - - - - -

Other institutions - - - - -

Total - - - - -

14,2Prepayments (Not expensed)

Note


Less: Amount


Add/Less: Other

Add: Cur-rent Year prepay-ments


14 R’000 R’000 R’000 R’000 R’000

Listed by economic classification





Other - - - - -

Total - - - - -



Note


Less: Amount


Add/Less: Other



Prepayments (Not expensed) 14 R’000 R’000 R’000 R’000 R’000






Other - - - - -

Total - - - - -

14,3 Prepayments (Expensed)

‘Bal-ance

as at 1 April 2019


year

Add/Less: Other


Amount as at 31 March 2020

R’000 R’000 R’000 R’000 R’000






Other - - - - -

Total - - - - -

‘Bal-ance

as at 1 April 2018


year

Add/Less: Other



Prepayments (Expensed) R’000 R’000 R’000 R’000 R’000






Other - - - - -

Total - - - - -



14,4Advances paid (Expensed)



year

Add/Less: Other

Add: Current

Year advances


R’000 R’000 R’000 R’000 R’000

National departments -

- - - -




Total - - - - -



year

Add/Less: Other

Add: Current

Year advances


Advances paid (Expensed) R’000 R’000 R’000 R’000 R’000

National departments - - - - -




Total - - - - -

2019/20 2018/19

Current Non-current Total

Current Non-current

Total

Note R’000 R’000 R’000 R’000 R’000 R’000

15 Receivables

Claims recoverable 15,1

72 073

- 72 073 84 024

- 84 024

Trade receivables 15,2 -

-

- -

- -

Recoverable expenditure

15,3 -

-

- 9

- 9

Staff debt 15,4 1 212 3 880 5 092 807 4 305 5 112

Fruitless and wasteful expenditure

15,6 310

-

310 -

- -

Other receivables 15,5 9 950 - 9 950 776 -

Total 83 545 3 880 87 425 85 616 4 305 89 921



2019/20 2018/19

Note R’000 R’000

15,1 Claims recoverable 15

National departments 11 124 11 361

Provincial departments 55 102 60 958


Public entities 5 847 11 705

Private enterprises - -

Higher education institutions

- -

Households and non-profit institutions

- -

Local governments

- -

Total 72 073 84 024

2019/20 2018/19

Note R’000 R’000

15,2Trade receivables 15


- -

- -

- -

Total - -

2019/20 2018/19

Note R’000 R’000

15,3Recoverable expenditure (disallowance accounts) 15


Online Travel Account - 9

- -

- -

Total - 9

2019/20 2018/19

Note R’000 R’000

15,4 Staff debt 15


Breach of Contract - 97

In-Service Debts 2 076 2 160

Out-of-Service Debts 2 103 1 966

Tax Debt 335 365

Private Entities 578 524

Total 5 092 5 112



2019/20 2018/19

Note R’000 R’000

15,5 Other receivables 15


Dishonoured Cheque 66 447

Sal: reversal 699 -

Online Travel Control Account 9 146 -

Other 39 329

- -

Total 9 950 776

2019/20 2018/19

Note R’000 R’000

15,6Fruitless and wasteful expenditure 15

Opening balance - -

Less amounts recovered - -

Less amounts written off - -

Transfers from note 32 Fruitless and Wasteful expenditure

310 -

Interest - -

Total 310 -

2019/20 2018/19

Note R’000 R’000

15,7 Impairment of receivables

Estimate of impairment of receivables

- -

Total - -

2019/20 2018/19

Note R’000 R’000

16 Investments

Non-Current

Shares and other equity

(List investments at cost)

- -

- -

Total - -



2019/20 2018/19

Note R’000 R’000

Securities other than shares Annex 2A

(List investments at cost)

- -

- -

Total - -

Total non-current

- -

2019/20 2018/19

Note R’000 R’000

Analysis of non current investments

Opening balance - -

Additions in cash - -

Disposals for cash - -

Non-cash movements - -

Closing balance - -

2019/20 2018/19

Note R’000 R’000

16,1Impairment of investments

Estimate of impairment of investments -

Total - -

2019/20 2018/19

Note R’000 R’000

17 Loans

Public corporations - -

Higher education institutions - -


Private enterprises - -

Non-profit institutions - -

Staff loans - -

Total - -



2019/20 2018/19

Note R’000 R’000

Analysis of Balance

Opening balance - -

New Issues - -

Repayments - -

Write-offs - -

Closing balance - -

2019/20 2018/19

Note R’000 R’000

17,1 Impairment of loans

Estimate of impairment of loans

-

-

Total - -

2019/20 2018/19

Note R’000 R’000

18Voted Funds to be Surrendered to the Revenue Fund

Opening balance 236 311 250 000

Prior period error 18,2 -

As restated 236 311 250 000

Transfer from statement of financial performance (as restated) 1 651 973 236 311

Add: Unauthorised expenditure for current year 11 - -

Voted funds not requested/not received 1,1 -1 500 000 -

Transferred to retained revenue to defray excess expenditure (Parliament/Legislatures ONLY) 18,1

- -

Paid during the year -236 311 -250 000

Closing balance 151 973 236 311

Include discussion where deemed relevant

2019/20 2018/19

Note R’000 R’000

18,1Voted funds/(Excess expenditure) transferred to the retained funds (Parliament/Legislatures ONLY) 18

Opening balance -

Transfer from the statement of financial performance -

Transfer from Departmental Revenue to defray excess expenditure 19 -

Closing balance - -





R’000

Nature of prior period error 18



Total -


2019/20 2018/19

Note R’000 R’000

19Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund



As restated 19,1 181 438 138 877

Transfer from Statement of Financial Performance (as restated) 1 987 394 1 917 305

Own revenue included in appropriation - -

Transfer from aid assistance 4 - -

Transfer to voted funds to defray expenditure (Parliament/Legislatures ONLY) 18,1

- -

Paid during the year -2 025 337 -1 874 744


19,1Prior period error Note 2018/19

R’000

Nature of prior period error 19


-

-

Relating to 2018/19 19 -

-

Total -

2019/20 2018/19

Note R’000 R’000

20 Bank Overdraft

Consolidated Paymaster General Account

-

-

Fund requisition account - -

Overdraft with commercial banks (Local) - -

Overdraft with commercial banks (Foreign) - -

Total - -



2019/20 2018/19

Note R’000 R’000

21 Payables - current

Amounts owing to other entities -

-

Advances received

21,1 8 470 9 876

Clearing accounts 21,2 7 418 7 418

Other payables 21,3 12 944 11 958

Total 28 832 29 252

2019/20 2018/19

Note R’000 R’000

21,1 Advances received 21

National departments Annex 7 -

-

Provincial departments Annex 7 - -

Public entities Annex 7 8 470 9 876

Other institutions Annex 7 - -

Total 8 470 9 876

2019/20 2018/19

Note R’000 R’000

21,2 Clearing accounts 21

(Identify major categories, but list material amounts)

Exchequer Grant Account 7 418 7 418

-

-

-

-

-

-

Total 7 418 7 418

2019/20 2018/19

Note R’000 R’000

21,3 Other payables 21


- - -

Sal: ACB Recalls 161 8

Sal: Medical Aid 16 23

Sal: Income Tax 2 523 1 188

Traffic fines from court incorrectly paid to the department 9 490 9 490

Other 754 1 249

- -

- -

Total 12 944 11 958



2019/20 2018/19

One to two years

Two to three years

More than three years

Total Total

Note R’000 R’000 R’000 R’000 R’000

22 Payables – non-current

Amounts owing to other entities

- - - - -

Advances received 22,1 - - - - -

Other payables 22,2 - - - - -

Total - - - - -

2019/20 2018/19

Note R’000 R’000

22,1 Advances received 22

National departments Annex 7 -

-

Provincial departments Annex 7 -

-

Public entities Annex 7 -

-

Other institutions Annex 7 -

-

Total -

-

2019/20 2018/19

Note R’000 R’000

22,2 Other payables 22


Total -

-

2019/20 2018/19

Note R’000 R’000

23 Net cash flow available from operating activities

Net surplus/(deficit) as per Statement of Financial Performance

3 632 734 2 144 936

Add back non cash/cash movements not deemed operating activities

-1 535 433 1 037 727

(Increase)/decrease in receivables 2 071 -11 184

(Increase)/decrease in prepayments and advances

10 -21

(Increase)/decrease in other current assets - -

Increase/(decrease) in payables – current -420 8 185

Proceeds from sale of capital assets -3 895 -

Proceeds from sale of investments -35 -34

(Increase)/decrease in other financial assets - -

Expenditure on capital assets 2 228 484 3 165 525

Surrenders to Revenue Fund -2 261 648 -2 124 744

Surrenders to RDP Fund/Donor - -



Voted funds not requested/not received -1 500 000 -

Own revenue included in appropriation - -

Other non-cash items - -

Net cash flow generated by operating activities

2 097 301 3 182 663

2019/20 2018/19

Note R’000 R’000

24 Reconciliation of cash and cash equivalents for cash flow purposes

Consolidated Paymaster General account 243 431 366 407

Fund requisition account - -

Cash receipts 2 569 2 393

Disbursements - -

Cash on hand 28 28

Cash with commercial banks (Local) - -

Cash with commercial banks (Foreign) - -

Total 246 028 368 828

2019/20 2018/19

Note R’000 R’000

25 Contingent liabilities and contingent assets

25,1 Contingent liabilities

Liable to Nature

Motor vehicle guarantees Employees Annex 2A - -

Housing loan guarantees Employees Annex 2A 3 3

Other guarantees Annex 2A - -

Claims against the department Annex 2B 289 079 235 416

Intergovernmental payables (unconfirmed balances)

Annex 4 7 055 -

Environmental rehabilitation liability Annex 2B - -

Other Annex 2B - -

Total 296 137 235 419

Contingent assets 2019/20 2018/19

Nature of contingent asset Note R’000 R’000

- -

Total - -

2019/20 2018/19

Note R’000 R’000

26 Capital commitments

Specify class of asset

Other Fixed Structures 6 576 731 3 344 196

- -

Total 6 576 731 3 344 196



2019/20 2018/19

R’000 R’000

27 Accruals and payables not recognised

27,1 Accruals

Listed by economic classification 30 days 30+ days Total Total

Goods and services

123 644 -

123 644

17 101

Interest and rent on land - - - -

Transfers and subsidies 1 010 - 1 010 16

Capital assets 212 992 - 212 992 1 198

Other 160 375 - 160 375 -

Total 498 021 - 498 021 18 315

2019/20 2018/19

Listed by programme level Note R’000 R’000

Administration 36 366 38

Transport Ifrastructure 198 244 17 477

Transport Operations 2 345 -

Transport Regulations 261 066 624

Community Based Programme - 176

Total 498 021 18 315

27,2 Payables not recognised


30 days 30+ days Total Total

Goods and services 28 640 - 28 640 77 320

Interest and rent on land - - - -

Transfers and subsidies - - - 783

Capital assets - - - 190 932

Other - - -

Total 28 640 - 28 640 269 035

2019/20 2018/19

Listed by programme level Note R’000 R’000

Administration - 16 626

Transport Ifrastructure 28 640 242 779

Transport Operations - 1 529

Transport Regulations - 1 724

Community Based Programme - 6 377

Total 28 640 269 035

2019/20 2018/19

Included in the above totals are the following:

Note R’000 R’000

Confirmed balances with departments Annex 4 - 3 720

Confirmed balances with other government entities Annex 4 - -

Total - 3 720



2019/20 2018/19

Note R’000 R’000

28 Employee benefits

Leave entitlement 76 726 70 979

Service bonus 35 777 34 430

Performance awards - -

Capped leave 72 763 75 255

Other - -

Total 185 266 180 664

29 Lease commitments

29,1 Operating leases

2019/20 Spe-cialised military assets

Land Buildings and other

fixed struc-tures

Machinery and

equipment

Total

R’000 R’000 R’000 R’000 R’000

Not later than 1 year - 93 96 - 189

Later than 1 year and not later than 5 years

- 157 209 - 366

Later than five years - - - - -

Total lease commitments - 250 305 - 555



fixed struc-tures

Machinery and

equipment

Total

R’000 R’000 R’000 R’000 R’000

Not later than 1 year - 88 90 466 644


- 265 288 - 553


Total lease commitments - 353 378 466 1 197

2019/20 2018/19

R’000 R’000

Rental earned on sub-leased assets

3 -

-

Total - -



29,2 Finance leases



fixed struc-tures

Machinery and

equipment

Total

R’000 R’000 R’000 R’000 R’000

Not later than 1 year - - - 1 847 1 847


- - - 799 799


Total lease commitments - - - 2 646 2 646



fixed struc-tures

Machinery and

equipment

Total

R’000 R’000 R’000 R’000 R’000

Not later than 1 year - - - 1 173 1 173


- - - 301 301


Total lease commitments - - - 1 474 1 474

This note excludes leases relating to public private partnerships as they are separately disclosed to note no. 35.

2019/20 2018/19

R’000 R’000

Rental earned on sub-leased assets

3 -

Total -

-

29,3 Operating lease future revenue



fixed struc-tures

Machinery and

equipment

Total

R’000 R’000 R’000 R’000 R’000

Not later than 1 year -

- -

-

-


-

- -

-

-

Later than five years -

- -

-

-

Total operating lease revenue receivable

-

- -

-

-





fixed struc-tures

Machinery and

equipment

Total

R’000 R’000 R’000 R’000 R’000

Not later than 1 year - - - - -


-

- -

-

-


Total operating lease revenue receivable

- - - - -

2019/20 2018/19

Note R’000 R’000

30 Accrued departmental revenue

Tax revenue - -

Sales of goods and services other than capital assets

- -

Fines, penalties and forfeits 65 409 36 412

Interest, dividends and rent on land - -

Sale of capital assets - -

Transactions in financial assets and liabilities - -

Transfers received - -

Other - -

Total 65 409 36 412

2019/20 2018/19

Note R’000 R’000

30,1 Analysis of accrued departmental revenue


Less: Amounts received - -

Less: Services received in lieu of cash - -

Add: Amounts recognised 265 286 606 883

Less: Amounts written-off/reversed as irrecoverable 236 289 613 181

Less: Amounts transferred to receivables for recovery - -


This is calculated on an average of the percentage of fines collected against fines outstanding over the past four financial years = 6,88%

2019/20 2018/19

R’000 R’000

30,2 Accrued department revenue written off

Nature of losses


- -

Traffic Fines 236 286 613 181

Total 236 286 613 181



2019/20 2018/19

Note R’000 R’000

30,3 Impairment of accrued departmental revenue

Estimate of impairment of accrued departmental revenue

- -

Total - -

2019/20 2018/19

Note R’000 R’000

31 Irregular expenditure

31,1Reconciliation of irregular expenditure

Opening balance 17 189 095 10 704 269

Prior period error 3 112 593

As restated 17 189 095 13 816 862

Add: Irregular expenditure - relating to prior year 31,2 -

Add: Irregular expenditure - relating to current year 31,2 2 393 469 3 372 233

Less: Prior year amounts condoned 31,3 -1 137 741 -

Less: Current year amounts condoned 31,3 -603 694 -

Less: Prior year amounts not condoned and removed 31,5 -

Less: Current year amounts not condoned and removed 31,5 -

Less: Amounts recoverable (current and prior year) 15 -

Less: Amounts written off 31,6 -

Closing balance 17 841 129 17 189 095

Analysis of closing balance

Current year 2 393 469 3 372 232

Prior years 15 447 660 13 816 863

Total 17 841 129 17 189 095



2019/20

31,2Details of current and prior year irregular expenditure – added current year (under determination and investigation) R’000

IncidentDisciplinary steps taken/criminal proceedings

Irregularity identified in the prior year and expenditure incurred in the current year

Contract Management 32 759

SCM process not followed 24 240

Bids not adjudicated by BAC - Vukuzakhe 59 831

Competitive bidding process not followed 29 072

Plant Hire - application of PPPFA Regulations 10 391

Bus Subsidies 1 044 861

SCM evaluation process 573 726

Irregularity identified in the current year and expenditure incurred in the current year

Contract Management 123 165

SCM process not followed 19 398

Bids not adjudicated by BAC - Vukuzakhe 1 452

Competitive bidding process not followed 67 950

Bus Subsidies 291 565

SCM evaluation process 83 259

Transfer payments 1 513

SCM thresholds 24 370

Overtime greater than Public Service Regulation 5 917

Total 2 393 469

2019/20

31,3 Details of irregular expenditure condoned R’000

IncidentCondoned by (relevant authority)

PY - Bus subsidies ( Negoiated Contracts) 1 137 741

CY - Bus subsidies ( Negoiated Contracts) 603 694

Total 1 741 435



2019/20

31,4Details of irregular expenditure recoverable (not condoned) R’000

Incident

Total -

2019/20

31,5Details of irregular expenditure removed - (not condoned) R’000

IncidentNot condoned by (relevant authority)

Total -

2019/20

31,6Details of irregular expenditure written off (irrecoverable) R’000

Incident

Total -

2019/20

31,7Details of irregular expenditure under assessment (not included in the main note) R’000

Incident

Total -


R’000


Relating to 2017-18 - affecting the opening balance 3 112 593

Add:expenditure prior to 31-03-2017 for transactions reported in 2019-20 3 244 183

Less: not irregular expenditure -153 612

add:expenditure prior to 31-03-2017 for transactions identified as irregular in 2019-20 22 022

Relating to 2018/19 -31 483

Add: identified in current FY but payment made in PY 18 099

Less: not irregular expenditure -49 582

Total 3 081 110



2019/20 2018/19

32 Fruitless and wasteful expenditure R’000 R’000

32,1Reconciliation of fruitless and wasteful expenditure

Opening balance 919 19


As restated 919 19

Fruitless and wasteful expenditure – relating to prior year 32,2

- -

Fruitless and wasteful expenditure – relating to current year 32,2

- 900

Less: Amounts recoverable 15,6 -310 -

Less: Amounts written off32,4

- -

Closing balance 609 919

32,2Details of current and prior year fruitless and wasteful expenditure – added current year (under determination and investigation) 2019/20

Incident Disciplinary steps taken/criminal

proceedings R’000

Total -

32,3 Details of fruitless and wasteful expenditure recoverable 2019/20

Incident R’000

Recoverable from RHDHV - P318 310

Total 310

32,4 Details of fruitless and wasteful expenditure written off 2019/20

Incident R’000

Total -


R’000




Total -



32,6Details of fruitless and wasteful expenditure under investigation (not in the main note) 2019/20

Incident R’000

Total -

2019/20 2018/19

Note R’000 R’000

33 Related party transactions

Revenue received

Tax revenue - -

Sales of goods and services other than capital assets - -

Fines, penalties and forfeits - -

Interest, dividends and rent on land - -

Sales of capital assets - -

Transactions in financial assets and liabilities - -

Transfers received - -

Total - -

Payments made

Goods and services

- -

Interest and rent of land - -

Expenditure for capital assets - -

Payments for financial assets - -


Total - -

2019/20 2018/19

Note R’000 R’000

Year end balances arising from revenue/payments

Receivables from related parties - -

Payables to related parties - -

Total - -

2019/20 2018/19

Note R’000 R’000

Loans to/from related parties

Non-interest bearing loans to/(from) - -

Interest bearing loans to/(from) - -

Total - -



2019/20 2018/19

Note R’000 R’000

Other

Guarantees issued/received - -

List other contingent liabilities between department and related party

- -

- -

Total - -

2019/20 2018/19

Note R’000 R’000

In kind goods and services provided/received

List in kind goods and services between department and related party

- -

- -

Total - -

List related party relationships and the nature thereof

The department shares an MEC with the Department of Community Safety and Liaison. Transactions are on the same conditions as with other departments.

2019/20 2018/19

No. of R’000 R’000

34 Key management personnel Individuals

Political office bearers (provide detail below) 2 2 014 1 978

Officials: -

Level 15 to 16 5 8 927 8 458

Level 14 8 11 781 10 783

-

Family members of key management personnel 5 1 819 1 718

Total 24 541 22 937



2019/20 2018/19

No. of R’000 R’000

Individuals

Key management personnel (Parliament/Legislatures)

Speaker to Parliament/the Legislature - - -

Deputy Speaker to Parliament/the Legislature

-

- -

Secretary to Parliament/ the Legislature - - -

Deputy Secretary - - -

Chief Financial Officer - - -

Legal Advisor - - -

Other - - -

Total - -

Include discussion here where deemed relevant

35 Public Private Partnership

2019/20 2018/19

Note R’000 R’000

Concession fee received - -

Base fee received - -

Variable fee received - -

Other fees received… please specify - -

- -

Unitary fee paid - -

Fixed component - -

Indexed component - -

Analysis of indexed component - -

Compensation of employees - -

Goods and Services(excluding lease payments) - -

Operating leases - -

Interest - -

Capital/(Liabilities) - -

Tangible rights - -

Intangible rights - -

Property - -

Plant and equipment - -

Loans - -

Other - -

Prepayments and advances - -

Pre-production obligations - -

Other obligations - -

Any guarantees issued by the department are disclosed in Note 25.1



2019/20 2018/19

Note R’000 R’000

36Impairment (Other than receivables, accrued departmental revenue, loans and investments)

Please specify -

-

Total - -

2019/20 2018/19

Note R’000 R’000

37 Provisions

Claims against the state 40 -

Retensions on Infrastructure Projects 34 864 91 248

- -

- -

Total 34 904 91 248


37,1Reconciliation of movement in provisions - 2019/20

Provision 1 Provision 2 Provision 3 Provision 4 Total provisions

R’000 R’000 R’000 R’000 R’000

Opening balance - 91 248 - - 91 248

Increase in provision 40 34 864 - - 34 904

Settlement of provision - -91 248 - - -91 248

Unused amount reversed -

Reimbursement expected from third party -

Change in provision due to change in estimation of inputs -

Closing balance 40 34 864 - - 34 904

Reconciliation of movement in provisions - 2018/19

Provision 1 Provision 2 Provision 3 Provision 4 Total provisions

R’000 R’000 R’000 R’000 R’000

Opening balance 28 24 690 - - 24 718

Increase in provision - 91 248 - - 91 248

Settlement of provision -28 -24 690 - - -24 718

Unused amount reversed - - - - -

Reimbursement expected from third party - - - - -

Change in provision due to change in estimation of inputs - - - - -

Closing balance - 91 248 - - 91 248



38Non-adjusting events after reporting date 2019/20

Include an estimate of the financial effect of the subsequent non-adjusting events or a statement that such an estimate cannot be made. R’000

Total -

• For Note 26: Capital Commitments o The 2020/21 budget of the department was reduced by an amount of R2.071 billion as contribution toward the provincial Covid-19 response in the 2020/21 Special Adjustments Estimate. The funds were reprioritised from Compensation of employees (R106.570 million), Goods and services (R341.926 million), Buildings and other fixed structures (R1.481 billion) and Machinery and equipment (R141.506 million). This will result in a higher risk of the department not being able to meet their capital commitments, in this regard the department is undertaking a process to ensure that the existing Capital Commitments are prioritised in the operational plan for the 2020/21 financial year to ensure that all commitments are met when due. • For Note 41 Work in Progress o The 2020/21 budget of the department was reduced by an amount of R2.071 billion as contribution toward the provincial Covid-19 response in the 2020/21 Special Adjustments Estimate. The funds were reprioritised from Compensation of employees (R106.570 million), Goods and services (R341.926 million), Buildings and other fixed structures (R1.481 billion) and Machinery and equipment (R141.506 million). This will result in a higher risk of the department not being able to meet their capital commitments, in this regard the department is undertaking a process to ensure that the existing Capital Commitments are prioritised in the operational plan for the 2020/21 financial year to ensure that all commitments are met when due. In addition to this the economic downturn has place additional strain on the construction industry and has resulted in higher than normal number of contractors failing to implement projects that have been awarded to them, this results in an increased risk that the department will fail to achieve its stated outcomes and planed outputs might not be achieved on time.

39 Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020

Opening balance

Value ad-justments Additions Disposals Closing balance

R’000 R’000 R’000 R’000 R’000

HERITAGE ASSETS - - - - -

Heritage assets - - - - -

MACHINERY AND EQUIPMENT 1 533 907 - 286 053 -31 103 1 788 857

Transport assets 924 415 - 73 453 -10 548 987 320

Computer equipment 71 326 - 25 835 -321 96 840

Furniture and office equipment 68 170 - 2 028 - 70 198

Other machinery and equipment 469 996 - 184 737 -20 234 634 499

SPECIALISED MILITARY ASSETS - - - - -

Specialised military assets - - - - -

BIOLOGICAL ASSETS - - - - -

Biological assets - - - - -

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 1 533 907 - 286 053 -31 103 1 788 857



Movable Tangible Capital Assets under investigation

Number Value

Included in the above total of the movable tangible capital assets per the asset register are assets that are under investigation: R’000

Heritage assets

Machinery and equipment

Specialised military assets

Biological assets

Additions

39,1 ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020

Cash Non-cash

(Capital work-in-progress

current costs and finance lease pay-

ments)

Received current, not paid (Paid

current year, received

prior year Total

R’000 R’000 R’000 R’000 R’000



MACHINERY AND EQUIPMENT 286 053 - - - 286 053

Transport assets 73 453 - - - 73 453

Computer equipment 25 835 - - - 25 835

Furniture and office equipment 2 028 - - - 2 028

Other machinery and equipment 184 737 - - - 184 737





TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS

286 053 - - - 286 053

Disposals

39,2 DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020

Sold for cash

Non-cash disposal

Total disposals

Cash received Actual

R’000 R’000 R’000 R’000

HERITAGE ASSETS - - - -

Heritage assets - - - -

MACHINERY AND EQUIPMENT

10 548 20 555 31 103 3 895

Transport assets 10 548 - 10 548 3 895

Computer equipment - 321 321 -



Furniture and office equipment

- - - -

Other machinery and equipment - 20 234 20 234 -

SPECIALISED MILITARY ASSETS - - - -

Specialised military assets - - -

BIOLOGICAL ASSETS - - - -

Biological assets - - -

TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS

10 548 20 555 31 103 3 895

39,3 Movement for 2018/19

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019

Opening balance

Prior period error Additions Disposals Closing balance

R’000 R’000 R’000 R’000 R’000



MACHINERY AND EQUIPMENT 1 361 119 - 185 150 -12 362 1 533 907

Transport assets 843 612 - 80 803 - 924 415

Computer equipment 69 928 - 8 603 -7 205 71 326

Furniture and office equipment

58 237 - 10 122 -189 68 170

Other machinery and equipment 389 342 - 85 622 -4 968 469 996





TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 1 361 119 - 185 150 -12 362 1 533 907

39.3.1 Prior period error Note 2018/19

R’000



-


-

-

Total -



39,4 Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020


Intangible assets

Heritage assets

Machinery and equip-

ment Biological

assets Total

R’000 R’000 R’000 R’000 R’000 R’000

Opening balance - - - 47 686 - 47 686

Value adjustments - - - - - -

Additions - - - 2 737 - 2 737

Disposals - - - 121 - 121

TOTAL MINOR ASSETS - - - 50 302 - 50 302


Intangible assets

Heritage assets


ment

Biological assets

Total

Number of R1 minor assets -

Number of minor assets at cost -

TOTAL NUMBER OF MINOR ASSETS

-

-

-

-

- -

Minor Capital Assets under investigation

Number Value

Included in the above total of the minor capital assets per the asset register are assets that are under investigation: R’000


Intangible assets

Heritage assets

Machinery and equipment

Biological assets

Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019


Intangible assets

Heritage assets


ment Biological

assets Total

R’000 R’000 R’000 R’000 R’000 R’000

Opening balance - - - 46 448 - 46 448

Prior period error - - - - - -

Additions - - - 2 660 - 2 660

Disposals - - - 1 422 - 1 422

TOTAL MINOR ASSETS - - - 47 686 - 47 686


Intangible assets

Heritage assets


ment Biological

assets Total

Number of R1 minor assets - - - - - -

Number of minor assets at cost - - - - - -

TOTAL NUMBER OF MINOR ASSETS - - - - - -




R’000




Total -

39,5 Movable assets written off

MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2020


Intangible assets

Heritage assets


ment Biological

assets Total

R’000 R’000 R’000 R’000 R’000 R’000

Assets written off - - - - - -

TOTAL MOVABLE ASSETS WRITTEN OFF

-

-

-

-

- -

MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2019

Specialis- ed

military assets

Intangible assets

Heritage assets


ment

Biological assets

Total

R’000 R’000 R’000 R’000 R’000 R’000

Assets written off - - - 672 - 672

TOTAL MOVABLE ASSETS WRITTEN OFF

-

-

-

672

- 672

39,6 S42 Movable Capital Assets

MAJOR ASSETS TO BE TRANSFERRED IN TERMS OF S42 OF THE PFMA - 31 MARCH 2020


Intangible assets

Heritage assets


ment Biological

assets Total

No of Assets -

Value of the asset (R’000) -

MINOR ASSETS TO BE TRANSFERRED IN TERMS OF S42 OF THE PFMA - 31 MARCH 2020


Intangible assets

Heritage assets


ment Biological

assets Total

No of Assets -

Value of the asset (R’000) -

MAJOR ASSETS TO BE TRANSFERRED IN TERMS OF S42 OF THE PFMA - 31 MARCH 2019


Intangible assets

Heritage assets


ment Biological

assets Total

No of Assets - - - - - -

Value of the asset (R’000) - - - - - -



MINOR ASSETS TO BE TRANSFERRED IN TERMS OF S42 OF THE PFMA - 31 MARCH 2019


Intangible assets

Heritage assets


ment Biological

assets Total

No of Assets

-

-

-

-

- -

Value of the asset (R’000)

-

-

-

-

- -

40 Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020

Opening balance

Value ad-justments Additions Disposals Closing balance

R’000 R’000 R’000 R’000 R’000

SOFTWARE

-

-

- -

MASTHEADS AND PUBLISHING TITLES

-

-

- -

PATENTS, LICENCES, COPYRIGHT, BRAND NAMES, TRADEMARKS

-

-

- -

RECIPES, FORMULAE, PROTOTYPES, DESIGNS, MODELS

-

-

- -

SERVICES AND OPERATING RIGHTS 41 - - 41

TOTAL INTANGIBLE CAPITAL ASSETS 41 - - - 41

Intangible Capital Assets under investigation

Number Value

Included in the above total of the intangible capital assets per the asset register are assets that are under investigation: R’000

Software







40,1 ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020

Cash Non-cash

(Develop-ment work-in-progress

current costs )


current year, received

prior year Total

R’000 R’000 R’000 R’000 R’000

SOFTWARE -

MASTHEADS AND PUBLISHING TITLES -


- -

RECIPES, FORMULAE, PROTOTYPES, DESIGNS, MODELS -

SERVICES AND OPERATING RIGHTS -

TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS - - - - -

Disposals

40,2 DISPOSALS OF INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020

Sold for cash

Non-cash disposal

Total disposals


R’000 R’000 R’000 R’000

SOFTWARE - - - -

MASTHEADS AND PUBLISHING TITLES - -

- -


-

-

- -


-

-

- -

SERVICES AND OPERATING RIGHTS - - - -

TOTAL DISPOSAL OF INTANGIBLE CAPITAL ASSETS

-

-

- -



Movement for 2018/19

40,3 MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019

Opening balance


R’000 R’000 R’000 R’000 R’000

SOFTWARE - - - - -

MASTHEADS AND PUBLISHING TITLES -

-

-

- -


56 993 -56 993

-

- -


-

-

-

- -

SERVICES AND OPERATING RIGHTS 41 - - - 41

TOTAL INTANGIBLE CAPITAL ASSETS 57 034 -56 993 - - 41


R’000


Relating to 2017/18 -56 993

-56 993

Relating to 2018/19

-

-

Total -56 993



41 Immovable Tangible Capital Assets

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020

Opening balance

Value adjustments Additions Disposals Closing balance

R’000 R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES

139 325 -

115 - 139 440

Dwellings - - - -

Non-residential buildings 139 325 115 - 139 440

Other fixed structures - - - -



LAND AND SUBSOIL ASSETS 125 535 - 1 - 125 536

Land 125 535 1 - 125 536

Mineral and similar non-regenerative resources - - - -

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS 264 860 - 116 - 264 976

The MCS on Accounting and Reporting for Immovable Assets currently provides for the phasing-in of roads for recording in the annual financial statements over a specified period of time, commencing in the 2021/2022 financial year. The department had over a number of years recorded roads on completion of construction in its annual financial statements, the cost records in this asset register were however found to be unreliable. The department after consultation with Office of the Accountant General, received a directive to remove all completed roads recorded in its notes to the annual financial statements, valued at R59,6 billion (2018/19: R57,6 billion), to align with the requirements of the MCS. The department has provided additional information in this regard in Annexure 9. In terms of the MCS the department will report on these assets in a phased manner commencing in the 2021/22 financial year.

Immovable Tangible Capital Assets under investigation

Number Value

Included in the above total of the immovable tangible capital assets per the asset register are assets that are under investigation: R’000

Buildings and other fixed structures

Heritage assets

Land and subsoil assets



Additions

41,1 ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020

Cash Non-cash

(Capital work-in-progress

current costs and

finance lease payments)


current year, received prior

year Total

R’000 R’000 R’000 R’000 R’000


115 -

- - 115

Dwellings - - - - -

Non-residential buildings 115 - - - 115

Other fixed structures - - - - -



LAND AND SUBSOIL ASSETS - 1 - - 1

Land - 1 - - 1

Mineral and similar non-regenerative resources - - - - -

TOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS 115 1 - - 116

Disposals

41,2 DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020

Sold for cashNon-cash disposal Total disposals


R’000 R’000 R’000 R’000


- -

- -

Dwellings -

Non-residential buildings -

Other fixed structures -

HERITAGE ASSETS - - - -

Heritage assets -

LAND AND SUBSOIL ASSETS - - - -

Land -

Mineral and similar non-regenerative resources -

TOTAL DISPOSAL OF IMMOVABLE TANGIBLE CAPITAL ASSETS

- -

- -

Movement for 2018/19



41,3 MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019

Opening balance


R’000 R’000 R’000 R’000 R’000


58 634 79 556 1 135 - 139 325

Dwellings - - - -

Non-residential buildings 58 634 79 556 1 135 - 139 325

Other fixed structures - - - - -



LAND AND SUBSOIL ASSETS - - 125 535 - 125 535

Land - 125 535 - 125 535

Mineral and similar non-regenerative resources - - - -

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS

58 634 79 556 126 670 - 264 860

41.3.1Prior period error Note 2018/19

R’000


79 556

Relating to 2018-19 - Incorrect classification to public transport facilities and admin buildings 79 556

Change in classification from Work-in-progress to complete. Duplication of transactions relating to prior year. -


Total 79 556

Capital Work-in-progress

41,4 CAPITAL WORK-IN-PROGRESS AS AT 31 MARCH 2020

Note

Opening Balance

1 April 2019 Current Year

WIP

Ready for use (Assets to the

AR) / Contracts terminated

Closing Balance 31 March 2020

Annexure 7 R’000 R’000 R’000 R’000

Heritage assets -

- - -

Buildings and other fixed structures 3 977 372 1 972 740 -2 014 976 3 935 135

Machinery and equipment - - - -

Intangible assets - - - -

TOTAL 3 977 372 1 972 740 -2 014 976 3 935 135




Age analysis on ongoing projects Number of projects 2019/20

Planned, construction not started

Planned, construction

started

Total R’000

0 to 1 year 116 55 717 758

1 to 3 year(s) 100 57 2 346 597

3 to 5 years 53 9 867 351

Longer than 5 years 8 - 7 429

Total 277 121 3 939 135

There are 8 projects that are older than 5 years. These projects have experienced a number of challenges namely:

• Termination of the appointed contractor

• Budget constraint, where feasibility studies could not be progressed to construction

• Delays due to project constraints i.e. terrain and weather

Two of the 8 projects will be completed in the 2020/2021 financial year.

2019/20 2018/19

Payables not recognised relating to Capital WIP R’000 R’000

- -

- -

Total - -

CAPITAL WORK-IN-PROGRESS AS AT 31 MARCH 2019

Note Opening Balance

Prior period error

Current Year WIP

Ready for use (Assets to the

AR) / Contracts terminated

Closing Balance 31 March 2019

Annexure 7 R’000 R’000 R’000 R’000 R’000


Buildings and other fixed structures 6 615 382 -1 924 900 2 950 872 -3 663 982 3 977 371

Machinery and equipment - - - - -

Intangible assets - - - - -

TOTAL 6 615 382 -1 924 900 2 950 872 -3 663 982 3 977 371


Age analysis on ongoing projects Number of projects 2018/19

Planned, construction not started

Planned, construction

started

Total R’000

0 to 1 year 81 59 720 075

1 to 3 year(s) 111 75 3 195 426

3 to 5 years 24 7 61 871

Longer than 5 years - - -

Total 216 141 3 977 372



Immovable assets written off

41,5 IMMOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2020

Buildings and other

fixed structures Heritage assets

Land and subsoil assets Total

R’000 R’000 R’000 R’000

Immovable assets written off -

TOTAL IMMOVABLE ASSETS WRITTEN OFF

- -

- -

IMMOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2019

Buildings and other

fixed structures Heritage assets

Land and subsoil assets Total

R’000 R’000 R’000 R’000

Immovable assets written off

- -

- -

TOTAL IMMOVABLE ASSETS WRITTEN OFF - - - -


S42 Immovable assets

41,6Assets to be transferred in terms of S42 of the PFMA - 2019/20 No of Assets Value of Assets

R’000

BUILDINGS AND OTHER FIXED STRUCTURES - -

Dwellings - -

Non-residential buildings - -

Other fixed structures - -

HERITAGE ASSETS - -

Heritage assets - -

LAND AND SUBSOIL ASSETS - -

Land - -

Mineral and similar non-regenerative resources - -

TOTAL - -

Assets transferred in terms of S42 of the PFMA - 18/19

Assets to be transferred in terms of S42 of the PFMA - 2018/19 No of Assets Value of Assets

R’000

BUILDINGS AND OTHER FIXED STRUCTURES - -

Dwellings - -

Non-residential buildings - -



Other fixed structures - -

HERITAGE ASSETS - -

Heritage assets - -

LAND AND SUBSOIL ASSETS - -

Land - -

Mineral and similar non-regenerative resources - -

TOTAL - -


2019/20 2018/19

41,7Immovable assets additional information Note

a Unsurveyed land Estimated completion date Annexure 8 Area Area

-

b Properties deemed vested Annexure 8 Number Number

Land parcels -

Facilities

Schools -

Clinics -

Hospitals -

Office buildings -

Dwellings -

Storage facilities -

Other -

c Facilities on unsurveyed land Duration of use Annexure 8 Number Number

Schools -

Clinics -

Hospitals -

Office buildings -

Dwellings -


Other -

d Facilities on right to use land Duration of use Annexure 8 Number Number

Schools -

Clinics -

Hospitals -

Office buildings -

Dwellings -


Other -



e Agreement of custodianship Annexure 8 Number Number

Land parcels -

Facilities -

Schools -

Clinics -

Hospitals -

Office buildings -

Dwellings -


Other -


42 Principal-agent arrangements

2019/20 2018/19

42,1Department acting as the principal

R’000 R’000

-

Total - -

Agents are appointed to perform motor vehicle registration and licensing functions and as per agreements entered into, are entitled to 8.55% as an Agency Fee. Clause 7.10.1 reads as follows, “The Agent shall be entitled to a fee equal to the collection fee of 8.55% (eight point fifty five percent), including VAT for all fees collected in terms of clause 7.2 for motor vehicle registration and licensing fees, as specified in the relevant schedules contained in applicable national and provincial road traffic legislation This arrangement enhances service delivery throughout the Province in urban or rural areas and enhances job creation at these Municipalities and Post Offices. The risks related to revenue due to the Department are minimized due to the fact that agreements require the daily banking/ pay-over of revenue to facilitate reconciliations

42,2Department acting as the agent

42.2.1Revenue received for agency activities 2019/20 2018/19

R’000 R’000

-

-

-

Total - -

The department collects a levy for motor vehicle licensing transactions preformed on behalf of the Road Traffic Management Corporation (RTMC), this levy is determined by the National Minister and is paid across in full to the RTMC on a monthly basis in arrears. This levy is determined in terms of the Road Traffic Management Corporation Act, 1999 (Act no.20 of 1999) This levy is automatically added to each relevant transaction when processed by the NaTIS System. The Department collects a levy on behalf of the Driving License Card Account a Trading Entity reporting to the Department of Transport. This levy is collected for each driving licence card transaction performed, the levy is determined by the National Minister and automatically added to each relevant transaction when processed through the NaTIS System and in full paid across the DLCA. This levy is determined in terms of Regulations 108(1A) and 119(1A) of the National Road Traffic Regulations, 2000 under the National Road Traffic Act, 1996 (Act 93 of 1996)



42.2.2Reconciliation of funds and disbursements - 2019/20

Category of revenue/expenditure per arrangement

Total funds received

Expenditure incurred

against funds

R’000 R’000

Road Traffic Management Corporation 122 568

Driver License Account 14 546

Total 137 114 -

Reconciliation of funds and disbursements - 2018/19

Category of revenue/expenditure per arrangement

Total funds received

Expenditure incurred

against funds

R’000 R’000

Road Traffic Management Corporation 122 086 -

Driver License Account 13 844 -

Total 135 930 -

42.2.3Reconciliation of carrying amount of receivables and payables - 2019/20

Receivables

Opening balance

Revenue principal is entitled to

Less: Write-offs/

settlements/waivers

Cash received on behalf of

principal Closing balance

R’000 R’000 R’000 R’000 R’000

Name of entity

-

-

TOTAL - - - - -

Payables

Opening balance

Expenses incurred on

behalf of principal

Cash paid on behalf of


R’000 R’000 R’000 R’000

Name of entity

RTMC - 14 545 859 -14 545 859 -

DLCA 9 875 772 122 567 946 -123 977 886 8 465 832

-

TOTAL 9 875 772 137 113 805 -138 523 745 8 465 832

Reconciliation of carrying amount of receivables and payables - 2018/19

Receivables



Opening balance

Revenue principal is entitled to

Less: Write-offs/

settlements/waivers

Cash received on behalf of


R’000 R’000 R’000 R’000 R’000

Name of entity

-

-

TOTAL - - - - -

Payables

Opening balance

Expenses incurred on

behalf of principal

Cash paid on behalf of


R’000 R’000 R’000 R’000

Name of entity

RTMC - 13 844 224 13 844 224 -

DLCA 9 338 808 122 085 804 121 548 840 9 875 772

-

-

-

TOTAL 9 338 808 135 930 028 135 393 064 9 875 772



43 Change in accounting estimate

During the year the following changes were made to the estimations employed in the accounting for transactions, assets, liabilities, events and circumstances

Value derived using the original

estimate

Value derived using the amended estimate

R-value impact of change in

estimate

Accounting estimate change 1: Provide a description of the change in estmate

Line item 1 affected by the change






estimate


R-value impact of change in

estimate








estimate


R-value impact of change in estimate









44 Prior period errors

2018/19

Note Amount bef error correction

Prior period error Restated amount

44,1 Correction of prior period errors

R’000 R’000 R’000

Revenue: (e.g. Annual appropriation, Departmental revenue, Aid assistance, etc.)

-

-

Net effect -

- -

Expenditure: (e.g. Compensation of employees, Goods and services, Tangible capital assets, etc.)

-

-

Net effect -

- -

Assets: (e.g. Receivables, Investments, Accrued departmental revenue, Movable tangible capital assets, etc.)

Immovable tangible capital assets 41.3.1 54 037 055 1 978 878 56 015 933

Capital work-in-progress 41 6 615 382 1 924 900 8 540 282

-

Net effect 60 652 437 3 903 778 64 556 215

Liabilities: (e.g. Payables current, Voted funds to be surrendered, Commitments, Provisions, etc.)

-

Net effect -

- -

Other: (e.g. Irregular expenditure, fruitless and wasteful expenditure, etc.)

Irregular Expenditure -Opening balance 1 April 2018

31 10 704 268 3 112 593 13 816 861

Irregular Expenditure - Additions relating to 2018-19

31 3 403 715 -31 483 3 372 232

-

Net effect 14 107 983 3 081 110 17 189 093



45 INVENTORIES (Effective from date determined in a Treasury instruction)

45,1 Inventories for the year ended 31 March 2020

Insert major

category

Insert major category



Total

Note R’000 R’000 R’000 R’000 R’000

Annex-ure 6

Opening balance

32 125

- -

- 32 125

Add/(Less): Adjustments to prior year balances

-

- -

- -

Add: Additions/Purchases - Cash

78 165

- -

- 78 165

Add: Additions - Non-cash - - - - -

(Less): Disposals - - - - -

(Less): Issues -73 836 - - - -73 836

Add/(Less): Received current, not paid (Paid current year, received prior year)

-

- -

- -

Add/(Less): Adjustments

-

- -

- -

Closing balance 36 454 - - - 36 454

Inventories for the year ended 31 March 2019

Insert major

category




Total

Note R’000 R’000 R’000 R’000 R’000

Annexure 6

Opening balance

29 451

- - - 29 451


- - - - -

Add: Additions/Purchases - Cash

57 914 - - - 57 914

Add: Additions - Non-cash

- - - - -

(Less): Disposals

- - - - -

(Less): Issues

-56 361

- - - -56 361


- - - - -

Add/(Less): Adjustments

- - - - -

Closing balance 31 004 - - - 31 004



45,2 Land parcels held for Human Settlement

2019/20 2018/19

Note R’000 R’000

Annexure 6

Opening balance -


-

Add: Additions/Purchases - Cash -

Add: Additions - Non-cash -

(Less): Disposals -

(Less): Issues -


-

Add/(Less): Adjustments -

Closing balance - -

45,3 Work in progress for the year ended 31 March 2020

Opening balance

Additions during year

(Ready for use / Suspended)

Closing balance

Note R’000 R’000 R’000 R’000

Annexure 6

Clearing -

Infrastructure -

Structure of houses -

Adjustments -

Total - - - -

Work in progress for the year ended 31 March 2019

Opening balance

Additions during year

(Ready for use / Suspended)

Closing balance

Note R’000 R’000 R’000 R’000

Annexure 6

Clearing - - - -

Infrastructure - - - -

Structure of houses

- - - -

Adjustments - - - -

Total - - - -

45,4 Houses ready for use

Quantity 2019/20 Quantity 2018/19

Note R’000 R’000 R’000 R’000

Annexure 6

Opening balance -


-

Add: Ready for use in current year -

Less: Issued to beneficiaries -

Add/(Less): Adjustments -

Closing balance - - - -



46 TRANSFER OF FUNCTIONS AND MERGERS

46,1 Transfer of functions

Provide a brief description of the functions transferred or acquired and the reason for undertaking the transaction or event.

46.1.1 State-ment of Financial Position

Note Balance before

transfer date

Functions (transferred) /

received Dept name

(Specify)


received Dept name

(Specify)

Functions (transferred)

/ received Dept name

(Specify)

Balance after transfer

date

R’000 R’000 R’000 R’000 R’000

ASSETS

Current Assets - - - -

-

Unauthorised expenditure -

Fruitless and wasteful ex-penditure

-

Cash and cash equivalents -

Other financial assets -

Prepayments and advances -

Receivables -

Loans -

Aid assistance receivable -

Non-Current Assets

Investments

- - - - -

-

Receivables -

Loans

Other financial assets

-

-

TOTAL ASSETS - - - - -

LIABILITIES

Current Liabilities - - - -

-

Voted funds to be surrendered to the Revenue Fund

-

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

-

Bank overdraft -



Payables -

Aid assistance repayable

-

Aid assistance unutilised -

Non-Current Liabilities

- - - -

-

Payables -

TOTAL LIABILITIES

- - - -

-

NET ASSETS - - - -

-

46.1.2 Notes Balance before

transfer date


received Dept name

(Specify)


received Dept name

(Specify)

Functions (transferred)

/ received Dept name

(Specify)

Balance after transfer

date

R’000 R’000 R’000 R’000 R’000

Contingent liabilities -

Contingent assets -

Capital commitments -

Accruals -

Payables not recognised

Employee benefits -

Lease commitments - operating lease

-

Lease commitments - finance lease

-

Lease commitments - operating lease revenue

-


-

Irregular expenditure -


-

Impairment -

Provisions

Movable tangible capital assets

-


-

Intangible capital assets -

Provide a reference to the proclamation or declaration giving effect to the transfer or receipt of functions

Indicate whether there was an agreement drawn up, and provide a description of the roles, responsibilities and accountability arrangements

Disclose the revenue and expenditure attributable to the transfer of functions subsequent to the transfer.



46,2 Mergers

Provide a brief description of the merger and the reason for undertaking the transaction or event.

46.1.1 State-ment of Financial Position

Note Balance bef merger date

Combining Dept (Specify)

Balance bef merger date


Balance bef merger date Combining

Dept (Specify)

Balance after merger date

Combined Dept (Specify)

R’000 R’000 R’000 R’000

ASSETS

Current Assets - - -

-

Unauthorised expenditure -


-

Cash and cash equivalents -

Other financial assets -

Prepayments and advances -

Receivables -

Loans -

Aid assistance receivable -

Non-Current Assets

- - -

-

Investments -

Receivables -

Loans -

Other financial assets

-

TOTAL ASSETS - - - -

LIABILITIES

Current Liabilities

- - -

-

Voted funds to be surrendered to the Revenue Fund

-

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

-

Bank overdraft -

Payables -

Aid assistance repayable -

Aid assistance unutilised -

Non-Current Liabilities - - - -



Payables -

TOTAL LIABILITIES - - - -

NET ASSETS - - - -

46.1.2 Notes Balance bef merger date


Balance bef merger date


Balance bef merger date Combining

Dept (Specify)

Balance after merger date

Combined Dept (Specify)

R’000 R’000 R’000 R’000

Contingent liabilities -

Contingent assets -

Capital commitments -

Accruals -

Payables not recognised

Employee benefits -

Lease commitments - operating lease

-

Lease commitments - finance lease

-

Lease commitments - operating lease revenue

-


-

Irregular expenditure -


-

Impairment -

Provisions

Movable tangible capital assets

-


-

Intangible capital assets -

Provide a reference to the proclamation or declaration giving effect to the merger along with the merger date.

Indicate whether there was an agreement drawn up, and provide a description of the roles, responsibilities and accountability arrangements

Combining departments: For each asset transferred and liability derecognised/removed, the carrying amount of the assets transferred and the liabilities derecognised/removed.


47 S

TATE

MEN

T O

F CO

NDI

TIO

NAL

GRA

NTS

REC

EIVE

D

G

RAN

T AL

LOCA

TIO

NSP

ENT

2018

/19

NAM

E O

F G

RAN

T

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sion

of

Reve

nue

Act/

Prov

inci

al G

rant

s

Roll

Ove

rsDO

RA A

d-ju

stm

ents

Oth

er A

d-ju

stm

ents

Tota

l Av

aila

ble

Amou

nt

rece

ived

by

depa

rtm

ent

Amou

nt sp

ent

by d

epar

tmen

tU

nder

/

(ove

rspe

nd-

ing)

% o

f ava

ilabl

e

fund

s spe

nt b

y de

pt

Divi

sion

of

Reve

nue

Act

Amou

nt sp

ent

by d

epar

tmen

t

R

’000

R

’000

R

’000

R

’000

R

’000

R

’000

R

’000

R

’000

%

R

’000

R

’000

Pro

vinc

ial R

oads

M

aint

enan

ce

Gran

t 1

882

781

-

-

-

1 8

82 7

81

1 88

2 78

1 1

882

781

-

100%

1 8

26 7

45

1 8

26 7

45

Pub

lic T

rans

port

O

pera

tions

Gra

nt

1 1

68 0

99

-

-

- 1

168

099

1

168

099

1 16

8 09

9

- 10

0% 1

106

154

1

106

154

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centi

ve

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t 7

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2 46

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71

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71

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2

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7

2 46

9

-

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122

557

3 1

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57

3 1

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57

-

3 00

9 46

1 3

009

461

Depa

rtm

ents

are

rem

inde

d of

the

DORA

requ

irem

ent t

o ce

rtify

that

all

tran

sfer

s in

term

s of t

his A

ct w

ere

depo

sited

into

the

prim

ary

bank

acc

ount

of t

he p

rovi

nce

or, w

here

app

ropr

iate

, int

o th

e CP

D ac

coun

t of a

pro

vinc

e.

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020



ANN

EXU

RE 1

AST

ATEM

ENT

OF

TRAN

SFER

S TO

DEP

ARTM

ENTA

L AG

ENCI

ES A

ND

ACCO

UN

TS

TRAN

SFER

ALL

OCA

TIO

NTR

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ER20

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9

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sted

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R

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R

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R

’000

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%

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00

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ction

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5 2

51

-

-

5

251

5

251

100%

4

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ety

and

Secu

rity

CETA

-

-

-

-

Tot

al

5

251

-

-

5 2

51

5 25

1

4 4

78



ANN

EXU

RE 1

BST

ATEM

ENT

OF

TRAN

SFER

S/SU

BSID

IES

TO P

UBL

IC C

ORP

ORA

TIO

NS

AND

PRIV

ATE

ENTE

RPRI

SES

TR

ANSF

ER A

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CATI

ON

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NDI

TURE

2018

/19

NAM

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tal A

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fer

% o

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opria

tion

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’000

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00

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00

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Publ

ic c

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ns

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nsfe

rs

1 16

8 09

9

-

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168

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1

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11

8,3%

-

1 3

82 0

96

1 10

5 15

4

Pub

lic T

rans

port

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ns

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t

1

168

099

-

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1 1

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99

1 3

82 0

96

118,

3%

1 38

2 09

6

1

105

154

Sub

tota

l: Pu

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pora

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1

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-

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1 1

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3%

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1

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154

TO

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1 16

8 09

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-

- 1

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3%

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1 10

5 15

4



ANN

EXU

RE 1

CST

ATEM

ENT

OF

TRAN

SFER

S TO

NO

N-P

ROFI

T IN

STIT

UTI

ON

S

TRAN

SFER

ALL

OCA

TIO

NEX

PEN

DITU

RE20

18/1

9

NO

N-P

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T IN

STIT

UTI

ON

S

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sted

ap

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tRo

ll O

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stm

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tual

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nsfe

r%

of A

vaila

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fund

s tra

nsfe

rred

Fina

l Ap

prop

riatio

n

R

’000

R

’000

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’000

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’000

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’000

%

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00

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3

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ANN

EXU

RE 1

DST

ATEM

ENT

OF

AID

ASS

ISTA

NC

E R

ECEI

VED

NAM

E O

F DO

NO

RPU

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SEO

PEN

ING

BA

LAN

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UE

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NDI

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31 M

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BAL

ANCE

R’0

00

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00

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00

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00

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00

Rece

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in c

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ality

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fras

truc

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ANN

EXU

RE 2

AST

ATEM

ENT

OF

FIN

ANCI

AL G

UARA

NTE

ES IS

SUED

AS

AT 3

1 M

ARCH

202

0 - L

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INST

ITU

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in

resp

ect o

fO

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ar

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reig

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mov

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31 M

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infla

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rate

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Accr

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guar

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R’0

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R’0

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ANN

EXU

RE 2

BST

ATEM

ENT

OF

CON

TIN

GEN

T LI

ABIL

ITIE

S AS

AT

31 M

ARCH

202

0

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1 A

pril

2019

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curr

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s re

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here

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sing

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31 M

arch

202

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ANN

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RE 3

CLAI

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RECO

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INTE

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ANN

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INVE

NTO

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INVE

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E YE

AR E

NDE

D 31

MAR

CH 2

019

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e

Inse

rt m

ajor

ca

tego

ry o

f in

vent

ory

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rt m

ajor

ca

tego

ry o

f in

vent

ory

Inse

rt m

ajor

ca

tego

ry o

f in

vent

ory

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rt m

ajor

ca

tego

ry o

f in

vent

ory

TOTA

L

R’0

00

R’0

00

R’0

00

R’0

00

R’0

00

Ope

ning

bal

ance

31 0

04

-

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-

31 0

04

Add/

(Les

s):

Adju

stm

ents

to p

rior y

ear b

alan

ces

-

-

-

-

-

Add:

Add

ition

s/Pu

rcha

ses -

Cas

h

7

1 76

4

-

-

- 71

764

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(Les

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9)

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25

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125



ANN

EXU

RE 6

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Capi

tal W

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in-P

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ess

MO

VEM

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IN C

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AL W

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ANN

EXU

RE 7

INTE

R-EN

TITY

ADV

ANCE

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CEIV

ED (n

ote

21 A

ND

note

22)

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TITY

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ance

out

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1/03

/202

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9

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ent

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ANN

EXU

RE 8

IMM

OVA

BLE

ASS

ETS

AD

DIT

ION

AL

DIS

CLO

SUR

E

Ref

er to

the

Illus

trativ

e G

uida

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cum

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or fu

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o in

sert

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this

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exur

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gges

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es in

the

abov

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for i

llust

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nly

and

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to

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cific

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com

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the

Imm

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31 M

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d re

porte

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in th

e re

leva

nt im

mov

able

ass

et re

gist

er n

ote

to th

e fin

anci

al

stat

emen

ts;

b) E

xist

ing

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ss 3

road

s; a

ll ro

ads

byth

e fin

anci

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ndin

g 31

Mar

ch 2

024

and

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rted

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the

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vant

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e to

the

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atem

ents

;

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depa

rtmen

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r con

sulta

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with

Offi

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f the

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ved

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to re

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MC

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ed in

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ted

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ted

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ir va

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detrm

ined

at

31 M

arch

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9 pl

us a

ctua

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ts fo

r 201

9/20

, as

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ed in

the

note

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ow.

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59

697

211


MHLABUNZIMA MAPHUMULO HOUSE

I N K O S I


MHLABUNZIMA MAPHUMULO HOUSE

I N K O S I


ANNUAL REPORT2019/20

GROWINGTOGETHERKWAZULU-NATAL

VOTE 12

KZN

Tra

nspo

rt C

omm

unic

atio

n_20

20

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PR280/2020ISBN: 978-0-621-48716-9

Documents

2019/20 - KZNTRANSPORT