Annual Report · The presentation of the 2010/11 Annual Report provides a detail account of the progress ... eni and Nkomazi Local Municipality as well as Ehlanzeni District Municipality

Department of Co-operative Governance and Traditional Affairs Annual Report 2010-2011

Annual Report2010/11

Annual Report2010/11


SUBMITTING THE ANNUAL REPORT TO THE MEMBER OF EXECUTIVE COUNCIL

Annual Report

2010/11

MR MB MASUKU: MEC FOR DEPARTMENT OF CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS

I have the honour of submitting the Annual Report of the Department of Co-Operative Governance and Traditional Affairs for the period 1 April 2010 to 31 March 2011 in terms of Public Finance Management Act, No 1 of 1999.

_________________________________________

MR MD MAHLOBO

Accounting Officer

Date: 31 August 2011

2

Department of Co-operative Governance and Traditional Affairs Annual Report 2010-2011 3

TABLE OF CONTENTS

PART 1: GENERAL INFORMATION

1.1 Foreword by the Executive Authority

1.2 Accounting Officers Overview

1.3 Mission Statement of the Department

1.4 Legislative Mandates

PART 2: PROGRAMME PERFORMANCE

2.1 Voted Funds

2.2 Aim of the Vote

2.3 Summary of Programmes

2.4 Overview of the Service delivery environment 2010/11

2.5 Overview of Organizational environment 2010/11

2.6 Strategic overview and Key policy developments for the 2010/11 financial year.

2.7 Departmental Receipts

2.8 Departmental Payments

2.9 Programme Performance 2010/11

2.9.1 Administration

2.9.2 Local Governance

2.9.3 Development and Planning

2.9.4 Traditional Institution and Management

PART 3: REPORT OF THE AUDIT COMMITTEE Report of the Audit Committee

PART 4: REPORT OF THE AUDITOR GENERAL ON CO-OPERATIVE GOVERNMENT Report of the Auditor General

PART 5: ANNUAL FINANCIAL STATEMENT CO-OPERATIVE GOVERNMENT Annual Financial Statement

PART 6: HUMAN RESOURCE MANAGEMENT Human Resources


PART 1GENERAL INFORMATION

PART 1GENERAL INFORMATION


Just as a form of illustration:

• 835 298 out of 909 812 households, representing 91.8% of the households have access to basic water.

• 722 932 out of the 941 980 households who registered for electricity, have access to electricity today.

• Half of the population has now access to basic sanitation in Mpumalanga

Our ability to promote and sustain steady socio-economic growth will depend in part, on how well we imbricate the institution of traditional leadership into our system of governance.

The current administration has made it a priority to spare no effort in restoring the dig-nity that should be accorded to the institution of Traditional Leadership. In ensuring that there are guidelines that will guide the support provided to our Amakhosi, the Executive Council has approved the policy for the tools of trade for Traditional Leaders.

The Province has also implemented the Nhlapho commission recommendations as ap-proved by the State President, His Excellency JG Zuma for the official inauguration of the two Kings, namely King Makhosonke II of the Manala and the entire Ndebele Nation and King Mabhoko III of the Amandebele AkwaNdzundza, and accordingly we have procured and delivered two cars as part of tools of trade for the Kings.

The department has also procured 57 vehicles for our Traditional Leaders and 49 have been handed over to them.

Despite the fact that the department has experienced challenges, the Annual Report presents encouraging achievements in the execution of our mandate. Thanks to the com-mitment and dedication of the Head of Department, Mr. Mahlobo supported by the Senior Management. Their collective leadership has ensured that the Department add value to the work of all spheres of government.

___________________

MR MB MASUKU MEC: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS

1.1 FOREWORD BY THE EXECUTIVE AUTHORITY

The presentation of the 2010/11 Annual Report provides a detail account of the progress we have made in discharging our responsibility of providing co-ordination strategic leadership of Co-operative Governance. More importantly, the report assesses the per-formance of our programmes against the output targets that we have set ourselves at the beginning of the 2010/11 financial year.

Our endeavours to transform and reposition the Department of Co-operative Govern-ance and Traditional Affairs as a single window of co-ordination has resulted in our improved contribution to the work of all spheres of government. We have made sig-nificant contribution to the stabilisation and enhancement of the relationship between Municipalities and Traditional Authorities.

The provision of basic services to our people will continue to be a defining indicator on which our successes and failures will be measured. This term has proven that yet many municipalities still face conditions that make it difficult for them to provide equitable and efficient services. We are indeed proud of the achievements that have been scored by our municipalities despite the challenges that they face.

MEC MB MASUKU

5


• Disaster Management centre (DMC)- the Department was supposed to have completed the DMC in November 2009 but due to delays, the project is practically complete and shall be commissioned during the course of 2011/12 financial year.

• Delmas Water Purification Plant – the Department was supposed to have completed the project by the end of March 2010 but the project was delayed due to bad weather conditions and is now practically complete.

The department procured all 59 vehicles for the traditional leaders and this includes the two Kings, eight of these cars remain undelivered due to disputes within the af-fected traditional councils.

______________________

Mr. MD Mahlobo

Accounting Officer

1.2 ACCOUNTING OFFICER’S OVERVIEW

The Department’s main appropriation for 2010/11 was R404.093 million and there has been no adjustment for the year. The Department spent R380.143 million or 94.1%. The department incurred R6.963 million the irregular expenditure, R6.127 million is due to over spending in compensation of employees in programme 02 and R0.836 million is due to irregular procurement of which disciplinary action has been concluded.

As disclosed in note 5.3 of the annual financial statement, the Department spent R6.976 million on legal fees mainly due the implementation investigations and Disciplinary process in terms of section 106 of the Municipal Systems Act, No 32 of 2000 in eMalahl-eni and Nkomazi Local Municipality as well as Ehlanzeni District Municipality.

The Department continued with interventions in terms of section 139 (1) (b) of the con-stitution and spent R20.49 million on salaries of Administrators and support staff.

The Department continued from 2009/10 financial year with the following major projects for the year under review:

HOD DAVID MAHLOBO

6


1.3 MISSION STATEMENT OF THE DEPARTMENT

MISSION

Facilitate and co-ordinate Intergovernmental Structures and Developmental Agen-cies for Sustainable Integrated Service Delivery through public participation and Traditional system of governance

VISION

Integrated sustainable people centred development

VALUES

1. Professionalism

2. Activist approach

3. Goal orientated

4. Community- centred

5. Excellence in service delivery and development

1.4 LEGISLATIVE MANDATES

• Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996) (as amended)

• Local Government Municipal Structures Act No. 117 of 1998

• Local Government Municipal Systems Act No. 32 of 2000

• Local Government Municipal Property Rates Act No. 6 of 2004

• National Disaster Management Framework of 2005

• Disaster Management Act No. 67 of 1995

• Disaster Management Act No. 57 of 2002

• Intergovernmental Relations Framework Act No. 13 of 2005

• Public Finance Management Act No. 1 of 1999

• Local Government Municipal Finance Management Act No. 56 of 2003

• Traditional Leadership and Governance Framework Amendment Act No. 41 of 2003

• Mpumalanga Traditional Leadership and Governance Act No. 3 of 2005

• Regulations for the Election of the 40% Members of Traditional Councils, 2007

• Mpumalanga Commissions of Inquiry Act No. 11 of 1998

Other non-entity specific legislation

• Public Service Act, 1994

• Promotion of Administrative Justice Act No. 3 of 2000

• Promotion of Access to information Act No .2 of 2000

• Promotion of Equity and Prevention of Unfair Discrimination Act, 2000

• Preferential Procurement Policy Framework Act, 2000

• Labour Relations Act No 66 of 1995

• Skills Development Act, 1998

• Employment Equity Act, 1998

• Affirmative Action in the Public Service White Paper

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OFFICE OF THE MEC

MR MB MASUKU

8

OFFICE OF THE MEC

MR MB MASUKU

HEAD OF

DEPARTMENT

MR MD MAHLOBO

OFFICE OF THE CHIEF FINANCIAL

OFFICER

MR DR SHIPALANA

CHIEF DIRECTORATE: CORPORATE

SERVICES

MS HG SHUBE

CHIEF DIRECTORATE:

LOCAL GOVERNANCE

MR IDP STRAUSS

CHIEF DIRECTORATE: DEVELOPMENT

AND PLANNING

MR S NGUBANE

CHIEF DIRECTORATE: TRADITIONAL

INSTITUTIONAL MANAGEMENT

MR H MAGAGULA

HOUSE OF TRADITIONAL

LEADERS

MR J MODIPANE


PART 2PROGRAMME PERFORMANCE

PART 2PROGRAMME PERFORMANCE


2.1 OVERALL PERFORMANCE2.1.1 Voted Funds

Appropriation Main Appropriation R,000

Adjusted Appropriation R,000

Actual Amount spent R,000

Over/Under expenditure R,000

R’thousand 404 093 404 093 380 143 23 950

Responsible Member of Executive Council Mr M.B. Masuku

Administering Department Department of Co-operative Governance and Traditional Affairs

Accounting Officer Mr M.D Mahlobo

2.1.2 Aim of the voteProvision of sustainable Local Government and strengthen the capacity of Municipalities to enable them to fulfil their constitutional and other legislative mandates.

2.1.3 Summary of programmes

PROGRAMME SUB-PROGRAMME

1. Administration 1.1. Office of the MEC1.2. Corporate Services

2. Local Governance 2.1. Municipal Administration2.2. Municipal Finance2.3. Public participation2.4. Capacity Development2.5. Municipal Performance Monitoring, Reporting and Evaluation

3. Development and Planning 3.1. Spatial Planning3.2. Land Use Management3.3. Local Economic Development (LED)3.4. Municipal Infrastructure3.5. Disaster Management

4. Traditional Institutional Management 4.1. Traditional Institutional Administration4.2. Traditional Resource Administration4.3. Rural Development Facilitation4.4. Traditional Land Administration

5. House of Traditional Leaders 5.1. Administration of Houses of Traditional Leaders 5.2. Committees and Local Houses of Traditional Leaders


2.1.4 Key strategic objectives achievements

STRATEGIC OBJECTIVES KEY ACHIEVEMENTS

1. This programme provides the overall operational and administration support and management to all unit and programmes of the department

• Conducted Performance Review with all mayors

• SLA signed with the department of Finance for joint Munimec

• Functional Rapid Response Unit established

• Roadmap and action plan for LG turnaround strategy has been finalised and implemented

• All policies and processes documented and approved

2. To promote and facilitate viable and sustainable local governance • The impact of legislative compliance was conducted in all 21 municipalities and necessary advice was provided

• Institutional capacity assessment was conducted in all municipalities through MTAS

• Conducted workshops on Municipal Public Accounts Committees

• District Mayors and MM structures are functional

• All 21 municipalities were supported with Anti-corruption Strategies

• 10 municipalities have achieved unqualified audit opinions

• All 21 municipal WSP were reviewed

3. Strengthen and Support capacity of municipalities to enable them to full fill their constitutional and other legislative development and planning mandates.

• 19 municipalities supported to register their MIS projects

• 100% completion of the water treatment plant

• 5 Bulk boreholes rehabilitated in Victor Khanye municipality

4. Support, strengthen and capacitate the developmental capacity and capability of Traditional and Royal Councils to accelerate rural development.

• Tools of trade policy for Traditional Leaders approved

• 57 vehicles procured and 49 handed over to Traditional Leaders

• 10 Traditional Council’s Offices renovated

5. To exercise oversight and participate in the promulgation of legislations by the provincial legislature and implementation of service delivery by government on matters of African culture, customs, traditions as well as the general welfare of traditional communities.

• 4 sittings convened

• 2 Chairperson’s forum conducted

• Ingoma Bill has been submitted to State Law Advisors


2.1.5 Overview of service delivery environment for 2010/11

Department’s key out puts for the year under review Provision of tools of trade for all traditional councils

Key challenges relevant to the department’s ability to deliver on its mandate. Instability of municipalities on matters of governance and the lack of suitably qualified em-ployees in the department to provide support to municipalities on infrastructure planning and implementation of projects

Virements and changes to the main appropriations The department did not receive additional funding during adjustment but had to do internal savings in order to finance the purchase of vehicles, section 139 intervention and the Delmas water purification plant

Progress made on roll over amounts No rollovers were received in the 2010/11 financial year

Significant developments, external to the department that impacted on the serv-ices delivery

There were no significant development

Key achievements in relation to outcome 9 Access to basic services, water through boreholes provided in different municipalities through the province

2.1.6 Overview of organizational environment for 2010/11

The department is currently operating with an old structure of the former Department of Local Government and therefore faced with challenges of meeting some of its strategic objectives support to municipalities. In order to address these challenges the department initiated a process of organisational structure review and also established a Rapid Response Unit that is providing technical support to targeted municipalities.

2.1.7 Key policy developments and legislative changes

The department did not have any policy or legislative changes


2.1.8 Departmental receipts

2007/08

Actual

2008/09

Actual

2009/10

Actual

2010/11

Target

2010/11

Actual

% deviation

from target

Tax revenue

Non Tax Revenue

Departmental Revenue

Bank interest earned 4 782 1 482 976 1,178 20.4

Sales of capital assets 116 8 36

Sales of goods and services other than capital assets 152 154 189

Financial transactions (Recovery of loans and advances) 98 114 551

TOTAL DEPARTMENTAL RECEIPTS 5 148 1 759 1 954

The department does not collect revenue by nature of its business and therefore targets cannot be set

3. DEPARTMENTAL EXPENDITURE

R Thousands Main Budget Final Budget Actual to the end of March 2011

Outcome as % Budget

(Over)/Under-spending

% (Over)/Under-spending

Administration 109,128 118,102 115,564 97.9% 2 538 2.1%

Local Governance 149,656 132,511 132,549 100.0% (38) 0.0%

Development and Planning 68,568 84,608 65,071 76.9% 19 537 32.1%)

Traditional Institution Management 65,610 55,256 54,129 98.0% 1 127 2.0%

The House of Traditional Leaders 11,131 13,616 12,830 94.2% 786 5.8%

Total 404,093 404 093 380 143 94.1% 23 950 5.9%


Economic Clasification

Compensation of Employees 216 717 207,777 213 904 102.9% (6 127) -2.9%

Goods and services 129 094 107,182 93 920 87.6% 13 262 12.4%

Payments for financial assets - 331 0.0% (331) 0.0%

Total tansfers and subsidies 7 080 31,950 22 272 69.7% 9 678 30.3%

House Holds 500 630 621 98.6% 9 1.4%

Capital Payments 50 702 56,554 49 095 86.8% 7 459 13.2%

Total 404,093 404 093 380 143 94.1% 23 950 5.9%

The departmental main and final appropriation was R404.093 million the department spent R380.143 million or 94.1%, under spending by R23.95 million or 5.9%.

The under spending was as a result of goods and services commitments not honored in the 2010/11 financial year and will be paid in the 2011/12 financial year as accruals which includes R1.950 million for MIG impact assessments projects.

An under transfer of R9.678 million to Rand Water Board for the Delmas bulk water pipe project and the R3 million that budgeted for the building of Thusong Service Centre that was spent.

The department has registered a request for roll over for the unspent committed funds with the Provincial Treasury

2.1.9 Transfer payments

The department spent R22.272 million or 69.7% of transfer payment budget. R15.312 million was paid to Rand Water Board as per the signed agreement for the Delmas bulk water project and R6.96 million was paid to the 59 traditional councils as an administrative support to these institutions.

The department receive annual reports from all traditional councils as part of its monitoring the effective and efficient use of the transferred funds. Rand Water Board provides expenditure progress report on the project to justify further transfer towards the project.

2.1.10 Conditional grants and earmarked funds

The department received no conditional grants for the year under review


2.1.11 Capital investment, maintenance and asset management plan

Capital investment

The department was engaged on the following capital projects:

Name of Project Start date Planned completion date

Provincial Disaster management Centre October 2008 May 2011

Delmas Water Purification Plant August 2008 June 2011

The Delmas Water purification plant is part of support to the Local Municipalities and once completed it will be handed over to Victor Khanye municipality. There will be no obli-gation for the department to plan and budget for future maintenance.

The department has no immovable properties and therefore there are no maintenance backlogs. The department will be assisted by Public Works Roads and Transport department to plan and budget for future maintenance of the Disaster Management Centre once commissioned.

Asset Management

Departments movable assets register is currently valued at R27 million and all assets are valued at cost, no depreciation is provided. The assets register is mainly comprised of motor vehicles, office furniture and computer equipment.

The asset holdings have not changed materially compared to the year before as there were no material disposal, scraping or loss due to theft during the year.

Measures taken to ensure that the department’s asset register remained up-to-date during the period under review includes:

(a) Quarterly asset physical verification process,

(b) Monthly reconciliation of BAS and LOGIS reports

(c) Review of BAS reports for incorrect allocations on a monthly basis

The current state of the department movable assets is 90 per cent in good functioning condition and there is no major maintenance project under taken by the department for the year under review.

Maintenance

Departments department has not incurred any expenditure on maintenance of immovable properties except for renovation of 10 Traditional Councils offices as part of support to the Councils.


2.2 PROGRAMME PERFORMANCE

2.9.1 PROGRAMME 1: ADMINISTRATION

Service delivery objectives and indicators:

Service delivery achievements:

Sub programmes/Programme: OFFICE OF THE MEC

Strategic Objective Measure/indicator Actual Performance agaist Target Reason for variance

Target Actual

To provide political leadership and strategic guidance

Mobilization of support and capacity for Local Government performance

Provincial LGTAS adopted by EXCO and PCF

Guidelines were sent to the Munici-palities to develop own MTAS

None

Service Delivery Agreements to be in place

Service Delivery Level Agreements signed

None

Review session with Programme Managers

Review sessions held with Pro-gramme Managers

None

21 Municipal TAS completed and integrated into the IDPs

All 21 MTAS have been drafted, adopted and integrated into the IDPS

None

Mayors to enter into performance agreements with the MEC

Performance Agreements of all May-ors were signed with the MEC

None

Performance Reviews of Mayors Conducted None

Mobilization of Social Partners At least 6 meaningful engagements 4 engagements held with SASOL and BHP

Preparations of the Local Government Elections

To provide for the functioning of the Office of the MEC by render-ing secretarial support, admin-istrative, public relations / com-munication and parliamentary support

Compliance Monitoring and en-forcement of LG relevant legisla-tion

Submission of Annual State of Local Government report to Legislature, NCOP and Minister

Annual Composite Report compiled and submitted

None

Early warning system assessment re-port tabled to EXCO and PCF

Assessment Report on Early Warning System compiled and submitted

None

Effective IGR across the province for sustainable development

Co-ordinate 3 MUNIMEC Meetings 3 MUNIMEC Meetings co-ordinated None


3 District Service Delivery Forum Meetings conducted

3 District Service Delivery Forum Meetings conducted

None

Protocols concluded and signed with Sector Departments and Municipali-ties

Service Level Agreements signed with Department of Finance for joint MUNIMEC

None

Monitoring and enforcement of im-plication of protocol

Monitored and enforced protocol implication

None

Strengthening the roles of tradi-tional leadership

Presentation of Draft policy on Tools of trade for Traditional Leadership to the Executive Council

Policy on Tools of trade submitted and approved by Executive Council

None

Effectiveness and efficient man-agement of the Office of the MEC

Effective and efficient management of the Office of the MEC

Effective and efficient management of the Office of the MEC through Monthly reports

None

Reasons for major variances:

(Department to state the reasons for major variances between target and actual)

Sub programmes/Programme: CORPORATE SERVICESSub-sub programme: OFFICE OF THE HOD


Target Actual

To provide operational and ad-ministrative support to all units and programmes of the Depart-ment

Automated M&E system in place Governance structures established Top Management Committee estab-lished and functional

None

Management Committee established and functional

Scheduled One on One Meetings are taking placing

Sub programmes/Programme: OFFICE OF THE MEC


Target Actual




Target Actual

Balance Scorecard developed as part of the M&E system

Balance Scorecard populated quar-terly upon approval of Quarterly Per-formance Information Reports and submitted

None

M&E – IT solutions developed None National COGTA still final-izing guidelines

Provincial Local Government Provincial Local Government Sum-mit held

2 Provincial Local Government Sum-mits held

Turnaround Strategy implemented Roadmap and Action Plan for the LG Turnaround finalized and imple-mented

Roadmap and Action plan for LG Turnaround finalized and imple-mented

None

Rapid Response Unit action plan im-plemented

Rapid response unit established and fully functional

None

Implementation of Turnaround strat-egy by Departments and Municipali-ties

Turnaround strategy is implemented by Municipalities and Departments

None

Review and evaluate the effective-ness of the unit

The effectiveness of the unit is being continuously reviewed and evalu-ated

None

Monitor the implementation of the turnaround strategy and identify gaps

The implementation of the turna-round strategy has been fully moni-tored and progress reports submitted to National CGTA

None

% Compliance to legislative re-quirements on submission of stra-tegic plans and annual reports

100% compliance to legislative re-quirements on draft non-financial annual report (performance informa-tion) to Auditor General

Quarterly Reports; IYM Reports; QPR Model Reports,; Non-financial Reports; Quarterly Balance Score-card Reports and Assessment Reports on IDPs are submitted to Provincial Treasury and the Premier’s Office

None

100% compliance to legislative re-quirements on submission of Final Annual Report

MEC concurrence on Upper Limits; Demarcation and delimitation of Wards; Name changes of Munici-palities

None




Target Actual

100% compliance to legislative re-quirements on final Strategic Plan (2011/12 – 2013/14)

2nd Draft of 2011/12 – 2013/14 Stra-tegic Plan developed

None

% improvement in questions re-ferred and followed-up

100% of all relevant questions cor-rectly referred and followed-up

All Questions were referred and fol-lowed up

None

% improvement in the manage-ment of and liaison with stake-holders

Stakeholder management pro-gramme developed and implement-ed

Stakeholder management pro-gramme developed and implement-ed

None

Turnaround time for incoming correspondence

Implement Turnaround time 3 Days turnaround time for incoming correspondence implemented

None

Adherence to turnaround time The 3 Days turnaround time for in-coming correspondence not adhered to during the last quarter

Delays in the approval of incoming correspondence, referral of documents and issuing of directives and ad-vices on actions to be taken on issues

Unqualified audit report from the Auditor-General

All statutory reports submitted in time

All statutory reports were submitted but not on time

Delays in the submission of inputs by Programmes

Reasons for major variances:

(Department to state the reasons for major variances between target and actual)


Sub programmes/Programme: CORPORATE SERVICESSub-sub programme: OFFICE OF THE CHIEF FINANCIAL OFFICER


Target Actual


Cash available in the PMG ac-count

100% no overdraft No overdraft throughout the year None

Number of days debtors remain uncollected

60 Days of debtors remain uncol-lected

60 days debtors remain uncollected None

% of error free revenue statements and reports

100% up to date, accurate and reli-able revenue statements and reports

Accurate revenue reports None

Number of asset register recon-ciliations

12 of Asset Register reconciliation Reports

12 monthly BAS/LOGIS asset recon-ciliation prepared

None

Accurate assets register main-tained

asset verification and asset register updated

Accurate asset register in the Mid-term

None

% compliance to the SCM frame-work

Approved policy and procedure manual

Policy and Procedure Manual ap-proved

None

implementation of approved poli-cies and procedure manual

Approved Policies and Procedure Manual implemented

Available formal business proc-esses and policies communicated to all Departmental staff

All policies and processes docu-mented and approved

All policies and processes docu-mented and approved

None

Conduct awareness to all staff Conducted awareness to all staff

Number of days on outstanding invoices

All suppliers paid within 10 work-ing days from the date of receipt of invoice

All suppliers paid within 10 work-ing days from the date of receipt of invoice

None

% of milestones achieved in the financial improvement action plan

cleared suspense accounts Cleared suspense account None

Unqualified Audit report Prepare 2010/11 Annual Financial Statements and submit to AG on time

Prepared 2009/10 Annual Financial Statements and submitted to AG on time

None

compliance Maintenance of ledger accounts managed and monthly reports issued


Sub programmes/Programme: CORPORATE SERVICESSub-sub programme: OFFICE OF THE CHIEF FINANCIAL OFFICER


Target Actual

Completed submissions Prepare 1st Draft MTEF submission for Provincial Treasury

Prepared 1st Draft MTEF submission for PT

None

Prepare and submit adjustment budget to Provincial Treasury

Prepared and submitted adjustment budget to Provincial Treasury

Prepare 2nd Draft MTEF submission for Provincial Treasury

Prepared 2nd Draft MTEF submis-sion for Provincial Treasury

Prepare final MTEF submission for Provincial Treasury

Prepared final Draft MTEF and sub-mitted to Provincial Treasury

Accurate trial balance Monthly follow-up and correction reports to users

12 monthly accurate trial balances sent to Treasury

None

12 IYM and monthly reports sub-mitted to Accounting Officer

12 IYM and monthly reports submit-ted to Accounting Officer

12 IYM Monthly Reports prepared and submitted to Accounting Officer

None

BAS codes available for usage Follow-up within 3 days A code available within 3 days of re-ceipt or before due date

None

Sub programmes/Programme: CORPORATE SERVICESSub-sub programme: FINANCIAL ACCOUNTING SERVICES


Target Actual


% of Departmental Expenditure Prepare and submit monthly creditor reconciliation

Prepared 12 Creditors reconcilia-tions

None

% of Salary Administration Prepare and submit monthly BAS/PERSAL reconciliation

Prepared 12 monthly Persal to BAS reconciliations

None

Financial Accounting Services registry

Prepare and submit monthly report on payment voucher verification

Prepared 12 monthly payment voucher reports

None


Sub programmes/Programme: CORPORATE SERVICESSub-sub programme: SUPPLY CHAIN MANAGEMENT SERVICES


Target Actual


Number of the Demand and Ac-quisition managed

Capture and update supplier data-base

All requisitions were captured and Orders issued as per requests

None

Departmental Database updated

12 months report of all requisitions submitted

12 months request report submitted to Provincial Treasury

Number of logistics managed Accurate Inventory Records 4 Quarterly stocks taking were con-ducted together with an official from the Office of the Auditor General

None

All adjustments were captured

All Departmental vehicles account-ed for

12 monthly reports on fleet manage-ment submitted to CFO

None

Vehicles were maintained as per schedule

Vehicles were issued as per requests

57 vehicles were purchased for Tra-ditional Leaders and only 49 have since been handed over to rightful traditional leaders Vehicles were purchased for the 2 Kings

18 GG vehicles were purchased for the department

Number of Asset Register man-aged

Prepare monthly BAS/LOGIS asset reconciliation

Physical verification and updating of Asset Register done

None

All transfer certificates were signed, and assets transferred

New furniture for Thulamahashe Offices procured and delivered

Number of supply chain perform-ance managed

Prepare monthly report on supply chain performance managed

Compiled and submitted 12 months Procurement and Cost Efficiency Re-port to Provincial Treasury

None


Sub programmes/Programme: CORPORATE SERVICESSub-sub programme: HUMAN RESOURCE MANAGEMENT


Target Actual


Organizational structure ap-proved and implemented

Draft Structure submitted to DPSA and EXCO

Draft structure submitted to DPSA for recommendation

None

Approved Top structure Approved Top Structure implement-ed

None

Implementation of the structure None Delays by DPSA in recom-mending the Draft Structure for finalization and imple-mentation

Number of funded vacant posts filled

100% recruitment process finalized

100% of funded vacant posts filled

46 posts were advertised There were delays in final-izing the recruitment proc-ess for the remaining 10 of the reprioritized posts and will be filled in the next fi-nancial year (2011/12)

Of the 46, only 25 were reprioritized and approved by EXCO to be filled

15 posts were filled

Skills Assessment done for 3 SMS posts

Number of personnel administra-tion practices implemented

100% of Administration practices implemented

Administration practices implement-ed as follows:

14 Leave Gratuities paid

None

15 officials permanently appointed

17 officials terminated

1094 Leave Forms captured

45 Pension Claims submitted to GEPF

40 officials awarded Long Service Certificates

32x Housing Allowance deductions implemented

6 x Bond deductions implemented

5 x Promotions processed




Target Actual

11 x Transfers on promotion

17 Transferred in

12 Transferred out

7 x Administrators re-appointed on 1 Month Contract

3x Officials appointed on Contract7 x officials assessed

329 BAS Entity forms captured

18 SMS Personal Profiles updated

369 Cell phone allowance for CDWs captured

2 officials paid unused Leave

10 Funeral Benefits claimed

54 MMs Personal Profiles updated

105 CDW Pay-points corrected

Amended Salary Packages for 8 SMS and 2 MMS

Created Acting Allowance for 2 of-ficials

5 x State Guarantees issued

4 x State Guarantees cancelled / re-deemed

Number of File Plans developed Consultation process Consultation on development of File Plan done

None

Draft Plan developed Draft File Plan developed None




Target Actual

Consultation process Consultation on development of File Plan done

None

Approval of the Plan None Delays by the Provincial Ar-chives in approving the File Plan

Implementation of the plan None Delays by the Provincial Archives in approving the Plan

File Plan will be imple-mented in the 2011/12 fi-nancial year

Functional Registry Availability of space None Engagement with relevant stakeholders still in process

Filing Cabinets installed None 3 Old Un-lockable Filing Cabinets are in place

File Plan not yet approved

Organized documents Only SP and SV Files are properly organized

File Plan not yet approved

Number of organizational capac-ity assessment interventions

Coordinated competency assess-ment of all SMS

Competency Assessment coordinat-ed for 17 SMS coordinated

Competency Assessment of other 4 SMS will be coordi-nated in the 2011/12 finan-cial year

Coordinated competency assess-ment of all MMS

Competency Assessment for 46 MMS coordinated

Competency Assessment of other 8 MMS will be coor-dinated in the 2011/12 fi-nancial year

Number of leadership develop-ment interventions implemented

Concept on leadership model draft-ed and approved

Concept Leadership Model devel-oped and approved

None

1st intervention implemented Financial Management for Non-Fi-nancial Managers implemented as the 1st Intervention

None




Target Actual

2nd intervention implemented None 2nd, 3rd and 4th Interven-tions not implemented as the Competency Assess-ments for both SMS and MMS were not concluded

3rd and 4th interventions imple-mented

Interventions will be im-plemented in the 2011/12 financial year

Number of Workplace Skills Plan reviewed and approved

Submit 1 Report of the previous WSP to DPSA

1Report of the previous WSP and 1 current WSP were submitted to DPSA

None

Coordinate 100% prioritized training as per the WSP

28 Courses were coordinated as per the Training Programme and 334 of-ficials attended

None

Review WSP for the 2011/12 finan-cial year

The 2011/12 WSP was reviewed None

Number of induction programmes implemented

4 Induction Programmes implement-ed

13 Induction Programmes conduct-ed

None

Number of bursaries awarded to external learners

Award bursaries to external learners 26 Bursaries awarded to external learners

21 Learners registered, 3 awarded bursaries by other institutions and 2 are not registered

Monitoring and evaluation reports 14 institutions visited for monitoring and evaluation of the performance of Bursary holders

None

Percentage of SMS members and supervisors trained on labour re-lations practice

100% SMS and Supervisors trained on grievance and misconduct proto-cols

8 Training Sessions conducted on Labour Relations for SMS and MMS (Supervisors)

None

Percentage of grievance handled and completed

100% grievance resolved 15 Disciplinary (Misconduct) cases finalized

None




Target Actual

7 Grievances finalized None

1 Dispute finalized

Employer and Employee advised on their Labour rights and obligations

Sub programmes/Programme: CORPORATE SERVICESSub-sub programme: LEGAL SERVICES


Target Actual


Percentage of legal cases success-fully completed in the best inter-est of the Department

100% cases successfully completed 13 cases handled:

#Mdoki’s Toilet & Tent Hire

#Mhaule/Nkambeni Tribal Authority

#WA Boshoff/Delmas & MEC of the Department

#Aaron Mkhabela/MEC & 2 others

#Nzila Royal House /Premier Mpu-malanga and 3 others

#Stemashan Sphephelo JV/MEC & HOD

#AM Langa/the Local Municipality of eMalahleni & MEC

#NEHAWU abo Gardee v Depart-ment

#Sehlare Royal Council/The Premier & 2 others

None




Target Actual

#AW Vorster/The MEC & 2 others

#MK Associates/the Department

#Matsamo Traditional Community/the Premier, the MEC & 5 others

#Jozzis Partanose Electronics/The MEC & Bushbuckridge Municipality

3 Sets of Disciplinary Cases handled:

#Disciplinary case for SMS members regarding Water for All Projects

#Disciplinary case on behalf of Emalahleni Local Municipality re-garding 04 officials

#Disciplinary case instituted by the MEC regarding Councillors of Mkhondo Local Municipality

Sound, well researched and reli-able legal opinions within the re-quired time frame

Provision of sound, well researched and reliable legal opinions timeously

18 Legal opinions drafted

167 Contracts drafted

20 Compliance Notices:

• 12 Notices Gazette on By-Elec-tions, Chief Whip as full time Coun-cillors, Extension of Mayoral Com-mittees and Name Changes

• Premier’s Notice recognizing Lehlogonolo E. Mashego as Kgosi of the Thabokgolo Traditional commu-nity

• Premier’s Notice recognizing Frederick Mogane as Kgosi of the Mogane Traditional community




Target Actual

#2 Notices published in Newspapers regarding the Closing of the Tradi-tional Account

#2 Notices published for the Applica-tions for members of the Provincial Committees

Traditional Claims & Disputes.

# Notice published determining the number of Councillors representing Local Municipalities on District Mu-nicipalities in the Province

#Notice published determining the number of Councillors of Municipali-ties in the Province

# Published correction and Amend-ment Notice of Notice No. 244 of 2010 (Pixley Ka Isaka Seme – name change)

3 Legislations drafted:

# Ingoma Bill (submitted to the Of-fice of the Speaker for further legisla-tive processes)

#Mpumalanga Traditional Leadership and Governance Framework Amend-ment Bill, 2010 (process suspended due to National Department of Tradi-tional Affairs currently amending the amended National Act)

#Mpumalanga Traditional Leadership and Governance Framework Amend-ment Bill, 2010 (process suspended due to National Department of Tradi-tional Affairs currently amending the amended National Act)


Sub programmes/Programme: CORPORATE SERVICESSub-sub programme: RISK MANAGEMENT


Target Actual


Number of Fraud Prevention Plans implemented

Implement and monitor the Fraud Prevention Plan

Implemented and monitored the Fraud Prevention Plan

None

Reviewed the Fraud Prevention Plan Fraud Prevention Plan reviewed

Extent of implementation of mile-stones achieved in the risk man-agement plan

100% milestones achieved in the risk management plan

Not all milestones were achieved in the risk management plan

Shortage of staff

Non-filling of funded va-cant posts

Number of Fraud Prevention Plans monitored

Monitor the Fraud Prevention Plan 1 Fraud Prevention Plan monitored Delay in the Launching of the Fraud Prevention Plan due to budget adjustments and late approval of the Plan

Number of Risk Management Strategies developed

1 Risk Management Strategy devel-oped

Developed 1 Risk Management Strategy

None

Number of risk management strategies implemented

Implement 1 Risk Management Strat-egy

Implemented 1 Risk Management Strategy

None

Conducted a Risk Management Awareness Workshop

Number of workshops conducted Conduct 8 Fraud Prevention & Risk Awareness Workshops

Conducted 2 Fraud Prevention Awareness Workshops

Delays in the Launching of the Fraud Prevention Plan due to budget adjustments and late approval of the Plan

Number of Risk Management Committee Meetings coordinated

Advise Programme Managers on risk related issues through 3 Risk Com-mittees

All Programme Managers were ad-vised on risk related issues through the Risk Committee Meetings at both Head Office and Regional Offices

None

Reviewed the Risk Management Committee Charter

None

New members of the Risk Manage-ment Committee appointed

Training of new Committee Members will commence in the 2011/12 financial year


Sub programmes/Programme: CORPORATE SERVICESSub-sub programme: SECURITY MANAGEMENT


Target Actual


Number of Security vetting coor-dinated

Coordinate Security vetting and screening

31 security vetting conducted Non cooperation on sub-mission of vetting forms by other SMS

Partial security compliance Conduct Security Awareness Work-shop for Top Management and SMS

1 Security Awareness for Top Man-agement and SMS conducted

None

Number of contingency plan im-plemented

Implement 1 Contingency Plan 1 Contingency Plan implemented None

Number of security committee meetings coordinated

Coordinate 4 Security Committee Meetings

4 Security Committee Meetings co-ordinated

None

Number of security services paid 17 Security Service Providers paid Payment to 17 Security Service Pro-viders coordinated

None

Number of security site inspec-tions conducted

Conduct 17 Security site inspections 61 Security Site inspections con-ducted

None

Number of investigations con-ducted

100% of security investigations con-ducted

1 Security investigation conducted None

Number of security appraisal conducted

Conduct 9 Security assessments and appraisals

19 Security assessment and apprais-als conducted

None

Number of Awareness Campaigns conducted

Conduct 4 Security Awareness and Briefing Campaigns

10 Security Awareness Campaigns conducted

None

30 Security Briefings conducted

Number of advises on security is-sues and departmental events at-tended

Attends Departmental Plenary Ses-sions and Events as per demand

15 Departmental Plenary Meetings attended 6 Cabinet Outreach Pro-grammes attended

None

10 Departmental Events attended


Sub programmes/Programme: CORPORATE SERVICESSub-sub programme: TRANSVERSAL ISSUES AND EMPLOYEE ASSISTANCE PROGRAMME


Target Actual


Programmes facilitated Employee Wellness Programme for Ehlanzeni District on Physical fit-ness, mental health promotion, team building and wellness management implemented

1 Physical fitness conducted

1 Eye-care conducted

1 HIV Counselling and Testing

1 Financial Management

1 Substance Abuse conducted

EAP cases and follow-up sessions conducted

Employee Wellness Programme for Gert Sibande District on Physical fit-ness, mental health promotion, team building and wellness management implemented

1 Physical fitness activity conducted

4 Eye-care conducted

None

1 Drug Abuse

1 Albinism

1 Health screening

2 Wellness screening

3 Financial Management

1 STI and TB Management

Fun Walk and Fun Run

1 Healthy Eating Habits

EAP cases and follow up sessions conducted

Monitoring and evaluation of imple-mentation in all Districts done

3 Regions visited for support, moni-toring and evaluation of programmes

None

Workshops on STI and TB, Health Eating Habits, Health screening, Physical fitness, Cancer Awareness and Motivational Talk on taking charge of own personal and profes-sional growth were conducted on the request of the Supervisors


Sub programmes/Programme: CORPORATE SERVICESSub-sub programme: TRANSVERSAL ISSUES AND EMPLOYEE ASSISTANCE PROGRAMME


Target Actual

Number of Departmental Trans-versal policies (Gender, Disability and HIV/AIDS implemented

Workshop on mainstreaming Trans-versal Policies conducted for Depart-mental Programmes

4 Workshops on mainstreaming Transversal policies conducted for Administration, Local Governance, Development and Planning and Tra-ditional Institution Management Pro-grammes

None

Mainstreaming and monitored Transversal issues in District Mu-nicipalities

Capacitated and supported Transver-sal issues in the 3 District Munici-palities

Capacitated and supported the 3 Dis-trict Municipalities and 2 Local Mu-nicipalities in Ehlanzeni (Mbombela and Nkomazi) on transversal issues (children’s issues)

None

Monitor the functionality of Trans-versal Issues in the 3 District Munici-palities

Functionality of Transversal Issues monitored in the 3 District Munici-palities

None

Commemoration of HIV/AIDS Can-dle Light Memorial Ceremony in the Department coordinated

Candle Light Memorial Ceremonies conducted in the 3 Districts (Ehlan-zeni, Gert Sibande and Nkangala)

None

Commemoration of National Wom-an’s Day for Ehlanzeni District

Commemoration of National Wom-en’s Day coordinated for Ehlanzeni District

None

Commemoration of 16 Days of Ac-tivism on No Violence and Abuse against Women and Children

Conducted commemoration of the 16 Days on No Violence and Abuse Against Women and Children

None

Conduct Research on the impact of the National Events

Research on the impact of the Na-tional Events conducted

None

Number of Departmental Wom-en’s Coaching and Mentorship Programme conducted

Conduct Women Coaching and Mentorship Programme in the 3 Dis-tricts

Women Coaching and Mentorship Programme conducted in 3 Districts

None

Conduct Impact Assessment of the Women Coaching and Mentorship Programme in all 3 Districts

None Non attendance of trained officials in the scheduled Assessment Session

Number of Awareness Workshops / briefing sessions on Elderly, HIV and AIDS, and Disability issues conducted

Conduct Awareness Workshops/ Briefing Sessions on HIV and AIDS and Disability issues in the 3 Districts

Awareness Workshops/ Briefing Ses-sions on HIV and AIDS and Disabili-ty issues conducted in the 3 Districts

None


Sub programmes/Programme: CORPORATE SERVICESSub-sub programme: : PLANNING AND PROGRAMME MANAGEMENT


Target Actual


Number of Departmental Calen-dars completed and approved

Monitor and update the implemen-tation of the Departmental Calendar

Monitored and updated the imple-mentation of the Departmental Cal-endar

None

Compliance and Monitoring Tool Ensure that all relevant dates for statutory submissions are populated in the Department’s Corporate Cal-endar

Ensured that all relevant dates for statutory submissions are populated in the Department’s Corporate Cal-endar

None

Number of surveys and research conducted

Recruit fieldworkers and collect data on the impact of LED Strategies

Filed workers were recruited and data collected in all sampled Mu-nicipalities

None

Finalized the TSC Research Report and awaiting inputs from Senior Management

Perform Data Analysis and Compile Research Report on the impact of LED strategies

Data Analysis on impact of LED Strategies compiled and Draft Re-search Report developed

None

Formulate Questionnaire and collect data on the functionality of Ward Committees

None The research is currently conducted by Public Par-ticipation sub-programme

Perform data analysis and compile research on the functionality of Ward Committees

None

Number of Strategic Planning Sessions conducted

Conduct 2 Workshops on Strategic Planning Session for the develop-ment of Departmental Annual Per-formance Plan

2 Departmental Strategic Planning Workshops conducted on the devel-opment of Annual Performance Plan

None

Draft Operational Plan compiled

Number of Strategic Planning Workshops conducted

Conduct Workshops on Strategic Planning for Departmental Pro-grammes

5 Workshop Sessions on Strategic Planning for Departmental Pro-grammes conducted

None

Draft Operational Plan compiled




Target Actual

Strengthen monitoring and evalu-ation capacity

Consultation process Programmes consulted on monthly basis on issues of performance

None

Automated M & E system developed None Quarterly Scorecard Moni-toring System developed by the Premier’s Office

Number of Municipalities en-gaged

Engage Municipalities on the De-partmental Plans

Engaged all 21 Municipalities in the Provincial IDP Assessments

None

Attended IDP Forum Meetings in various Municipalities

Prepared a Departmental Projects/Plans Presentation and forwarded to all 21 Municipalities

Number of policies developed Develop 2 Departmental policies 2 New policies on Health & Pro-ductivity Management and Wellness Management developed

None

Number of policies reviewed Review 23 Departmental policies 15 Policies were reviewed and sub-mitted for approval

8 policies withdrawn since they did not go through the Departmental reviewal and approval processes

Number of Performance Reviews conducted

Conduct Quarterly Performance Re-view Sessions

3 Quarterly Performance Reviews conducted during the Executive Management Meetings

Quarterly Performance Review is done at end of every Quarter upon the ap-proval of the consolidated Performance Report by the HOD

Number of Departmental Reports assessed

Compile Monthly Monitoring Re-ports on Departmental Projects and Plan

12 Monthly Reports on Departmen-tal Programmes and Projects com-piled

None

Number of projects visited Undertake visits to Departmental Projects for monitoring purposes

8 TSCs were visited to monitor their functionality

None

10 Renovated Traditional Coun-cil Offices were visited to monitor progress and confirm completion




Target Actual

9 Drilled boreholes at Thaba Chweu Municipality were visited to check their existence and progress made thus far

Sub programmes/Programme: CORPORATE SERVICESSub-sub programme: : COMMUNICATIONS AND IT SUPPORT


Target Actual

Improved external communi-cations interventions between the Department and the Public through the media

Number of departmental media briefs

Hold 2 Departmental media briefs None Difficulty in agreeing on is-sues and securing the date for the media briefing

Number of Newspapers scanned Scan 16 578 newspapers and cut clippings

Newspaper unit prices increased and 1 Pack of Newspaper was added (New Age)104 clippings cut

Number of proactive media re-leases

Issue 28 proactive media releases Issued 40 proactive media releases More statements were is-sued as there were no me-dia briefings

Number of media queries re-sponded to

Respond to media queries as per de-mand

Responded to 20 Media queries None

Number of Airtime for Radio Talk Shows on Nation Building Pro-grammes on Ligwalagwala, Ik-wekwezi, Umghana Lonene and UKhozi FM

50 Airtime slots purchased on Lig-walagwala and Ikwekwezi

Purchased 50 Airtime slots on Mpu-malanga Combo (Ligwalagwala and Ikwekwezi

The rates for airtime were revised and costed more than we had budgeted for, hence could not use uKhozi and Umnghana Lonene due to high rates and awkward hours for talk shows.

Monitored 53 Talk Shows

Number of airtime slots pur-chased on Community Radio Sta-tions

Purchase 12 Airtime slots on Com-munity Radio Stations

Purchased and monitored 12 Airtime slots on Community Radio Stations

None




Target Actual

External communication inter-ventions to improve the image and promote the activities of the Department through marketing communications to create a bet-ter understanding of the Depart-ment

Number of jingles purchased on National, Provincial and Commu-nity Radio Stations

Develop 8 jingles for the different programmes of the Department to be aired on SABC and Community Ra-dio Stations

8 jingles were developed (6 on SABC and 2 on Community Radio Stations)

None

Number of advertorial space pur-chased for advertorials on Nation-al, Provincial and Local Newspa-pers or other publications

Purchase 8 advertorial spaces for ad-vertorials on National newspapers or publications and on Provincial or Local Print Media

3 Advertorial spaces purchased on National Newspapers

None

8 Advertorial spaces purchased on Provincial newspapers

Intervention to promote and strengthen Local Government communication system to en-able effective communication of service delivery programmes and their success

Number of Workshops held to build capacity at Local Govern-ment level on communications

Hold 1 Workshop to build capacity at Local Government Level on com-munications

Held 1 Communicators Workshop for Municipal Communicators

Utilized less funds since the venue was freely secured at Steve Tshwete Local Mu-nicipality

Information to update website collated and consolidated

100% information provided to MIS for website updating

Provide information to MIS for up-dating of the website

Information provided to MIS for up-dating of Departmental Website

None

Promote stakeholder relations through interacting with commu-nities and other stakeholders

Number of departmental commu-nity meetings and project visits to Municipalities by MEC

Attend 4 Cabinet Outreach Pro-grammes

Coordinated 5 project visits by the MEC as follows: Dipaliseng Lo-cal Municipality – Balfour (Sophia Town) Borehole.

Departmental Programmes not forwarding activities for the Calendar of Events which makes planning a problemThembisile Hani Local Municipality

(Papkuil Village) borehole

Casteel Thusong Service Centre

Masoyi Tribal Office

Tjakastad Community Meeting

Handing over of Certificate to King Mabkhoko III

Number of Gala Dinners held Hold 1 Gala Dinner Held 1 Gala Dinner for the Policy and Budget Speech event

None

Number of Departmental Team Building Sessions held

Coordinate 1 Team Building Session Coordinated 1 Team Building Ses-sion for the Department

None




Target Actual

Attend all Executive Council Out-reach Programmes, iZimbizo, Public Participation activities and follow-up on community re-sponses

Attend all Executive Council Out-reach Programmes, iZimbizo, Public Participation activities and follow-up on community responses

Attended 8 Executive Council Out-reach Programmes in the following Municipalities:

Thaba Chweu

Mkhondo

Thembisile Hani

Lekwa

Pixley Ka Seme

Nkomazi X 2

Dr JS Moroka

Services requiring procure-ment were minimal, and where it was required the charges were far less than expected.

Attend to all Presidential Hotline issues

Attend to all Presidential Hotline is-sues

Attend to all Presidential Hotline is-sues

Municipalities not respond-ing to issues sent to them, however, District PLO Fo-rums have been set up to assist in coordinating re-sponses from Municipali-ties

Coordinated responses raised from the President’s Hotline

Weekly and Monthly Reports for-warded to the Premier’s Office

3 Presidential Hotline Forums launched in Nkomazi Local Munici-pality; Nkangala and Gert Sibande Districts

Number of Programmes of Calen-dar of Events

Compile and update the Calendar of Events 4 times

Compiled and updated the Calendar of Events 4 times

None

Number of joint campaigns and activities with government de-partments and partners

Coordinate 3 joint campaigns and activities with government depart-ments and partners

15 joint campaigns were coordi-nated as follows: Mandela Day; Women’s Day; Commemoration of 16 Days of Activism on No Violence and Abuse to Women and Children; World Aids Day; Opening of the Pro-vincial House of Traditional Leaders; Inauguration of King Mabhoko III;

None




Target Actual

Local Government Summit; Tradi-tional Council Lekgotla in Witbank; Freedom Day celebrations; Human Rights Day; Water IMBIZO; Celebra-tion of the Day of the Elderly; Munic-ipal Communicators’ Forum; Thaba Chweu School Uniform Hando-ver event; Bursary Breakfast Show Handover event at Crocodile Inn

Produce corporate printed iden-tity material and paraphernalia

Number of copies of Budget Speech produced

Produce 1000 copies of Budget Speech

1000 copies of Budget Speech were produced internally

None

Number of copies of Annual Re-ports produced

Produce 1000 copies of Annual Re-port

1000 Copies of Annual Report pro-duced

None

Number of Internal Newsletters produced

Compile 12 Internal Newsletters and produce 9000 copies

12 Internal Newsletters compiled and 9000 copies produced

None

Number of External Newsletters produced

Compile 4 External Newsletters and produce 3000 copies

4 External Newsletters compiled and 3000 copies produced

None

Number of Folders produced Procure 1500 Departmental Folders 2000 Departmental Folders procured Demand for Folders in-creased due to high number of Departmental activities, and an additional 500 fold-ers were procured

Number of copies of Departmen-tal Calendars procured

Procure 750 Departmental Calen-dars

750 Departmental Calendars pro-cured

None

Number of Christmas Cards pro-cured

Procure 300 copies of Christmas Cards

300 Copies of Christmas Cards pro-cured

None

Number of Brochures, Pamphlets, officials’ pictures and other pub-lications produced and published

Procure Brochures, Pamphlets and other publications as per demand

Printed 300 copies of the Annual Performance Plan

The Local Government Review Summit was not planned forPrinted 300 copies of the Strategic

Plan

Procured 25 Official Pictures and Frames of the MEC

Printed 20 000 copies of Letterheads for the House of Traditional Leaders




Target Actual

Printed 9900 documents for the Lo-cal Government Review Summit

Number of Business Cards pro-cured

Procure Business Cards as per de-mand

12 000 copies of Business Cards were procured

Number of officials re-quiring Business Cards in-creased due to inclusion of Traditional Leaders

Number of paraphernalia pro-cured as per demand

Procure paraphernalia as per de-mand

116 Departmental Banners procured None

Number of paraphernalia pro-cured as per demand

Procure paraphernalia as per de-mand

116 Departmental Banners procured None

Number of times the Departmen-tal Photo Gallery is updated

Update the Departmental Photo Gal-lery 12 times

Updated the Departmental Photo Gallery 12 times

None

Number of Exhibitions held (Pro-vincial and National)

Hold 2 Exhibitions Attended 1 National function for Ex-hibition in Thulamahashe on Youth Day Celebrations

None

Consistent use and adherence to brand identity

Consistent use and adherence to brand identity

Compliance to brand implementa-tion as per demand

Complied to brand implementation as required

None

To manage the Information Tech-nology (IT) function (Desktop support) of the Department

Monitoring the provision of Desk-top Support

Provide Desktop Support as per de-mand

Desktop support effectively provided (Attended to all Call Outs at Head Office, Regional and CDWs Offices)

None

Ensure the establishment of sound Information Management System

Develop, implement and support the Inter-and Intranet Websites as per demand

Develop, implement and support the Inter- and Intranet Websites as per demand

Website up, running and functional None

Designed Supply Chain Database

Provide support on MIG/PMIS, BAS,PERSAL,LOGIS,DIGICOR, etc as per demand

Provide support on MIG/PMIS, BAS,PERSAL,LOGIS,DIGICOR, etc as per demand

All systems are monitored to ensure their availability

None

Installed 6 New PCs on Human Re-source Profiling System

Review IT related policies as per demand

Review IT related policies as per de-mand

E-mail and Internet policies were re-viewed

None

To provide sound Architecture Planning of Information Manage-ment, Systems and Technology (IMST)

Installation and upgrading of net-work connectivity as per demand

Installation and upgrading of net-work connectivity as per demand

None There was no demand for new or upgrading of net-work connectivity




Target Actual

To ensure availability of Compu-ter equipments

Acquisition of Computer equip-ments as per demand

Acquire Computer equipment as per demand

Processed all applications for Com-puters, Laptops, Projectors and Print-ers

None

Upgrading and replacement of computers as per demand

Upgrading and replacement of com-puters as per demand

Develop and approve MSP Approved Master System Plan (MSP)

Develop Draft Master System Plan Interim Master System Plan internal-ly drafted and approved

Financial constraints com-promised the appointment of a Service Provider to develop the Master System Plan

Final Master System Plan delivered Interim Master System Plan approved

Regular and reliable backup proc-esses

Regular and reliable backup proc-esses

Document of data/information back-up assessment delivered

Data/information backup delivered at Government Complex

None

Implement data/information backup software

Procured a System for MEC, HOD and Registry Offices

EDMS System up and running in the HOD and MEC Offices

None


Programme 2: LOCAL GOVERNANCE

Purpose:

• To support and strengthen the capacity of Municipalities to enable them to fullfil their constitutional and other legislative mandate.

Strategic Objectives:

• To strengthen and support institutional arrangements and legislative compliance systems

• To strengthen and support intergovernmental relations system across the Province

• To facilitate good governance and improve financial management in Municipalities

• To encourage involvement of communities and community organizations in the matters of local government

• To facilitate the establishment of a Service Delivery Unit to ensure the institutionalisation of Batho Pele principles

• Strengthen the capacity of municipalities to perform their developmental responsibilities

• Monitor and evaluate performance of municipalities and their compliance to relevant legislation

• Service Delivery Objectives and Indicators:

Sub programmes/Programme: MUNICIPAL ADMINISTRATION


Target Actual

To strengthen and support institu-tional arrangements and legisla-tive compliance systems

Number of responses received from Municipalities in response to a checklist on legislative com-pliance

Develop and circulate a checklist to municipalities to verify their level of legislative compliance

A checklist developed and circulated to municipalities after a research was done with other Provinces

None

Analyze responses from Municipali-ties and develop an Action Plan to address challenges

Information gathered from munici-palities was analyzed and all munic-ipalities were visited

A special intervention was done in Municipalities un-der Section 139

Monitor the implementation of the Action Plan by Municipalities

Implementation of Municipal Action Plan monitored

None

Assess the impact of the legislative compliance project on Municipali-ties

The impact of legislative compliance was conducted in all 21 municipali-ties and necessary advice provided

None

Number of municipalities as-sessed to establish their constitu-tional capacity to comply with all legislation

Conduct institutional capacity as-sessment in 21 Municipalities

Institutional capacity conducted in all 21 Municipalities through the MTAS and further verified if all issues raised were dealt with

None


Number of municipalities as-sessed to establish their constitu-tional capacity to comply with all legislation

Conduct institutional capacity as-sessment in 21 Municipalities

Institutional capacity conducted in all 21 Municipalities through the MTAS and further verified if all issues raised were dealt with

None

Number of municipalities sup-ported to ensure that they comply will all legislation

Develop and coordinate a support programme to assist municipalities to comply with all legislation

Assisted Albert Luthuli and Emak-hazeni Local Municipalities on Del-egation Register

None

All other Municipalities were assist-ed through the MTA to comply with all legislations

Conduct workshops and training with municipalities at District level on legislative compliance

Conducted workshops and trainings on Municipal Public Account Com-mittees (MPAC) in the 3 Districts for all Municipalities

None

Support municipalities in ensur-ing that Intergovernmental Rela-tions Structures are established and functional

Number of Intergovernmental re-lations structures established at District level

Develop guidelines and conduct in-formation session in terms of refer-ence for District and Provincial IGR structures

Consultation with all District Mu-nicipalities and benchmarking with other Provinces done.

None

Facilitated the development of Guidelines at District level

Work with all Districts to establish MMs and CFOs IGR structures

District Mayors’ IGR structures func-tional

None

Work with all Districts to establish MMs and CFOs IGR structures

District MMs IGR structures func-tional

CFOs IGR structures functional

Conduct a Provincial IGR Summit Provincial Local Government Sum-mit coordinated for the same pur-pose

None

Number of intergovernmental re-lations structures fully functional at District level

Develop and circulate a checklist to municipalities to verify the level of functionality of IGR structures

Developed and circulated a checklist to verify the level of functionality of the IGR structures in Municipalities

None

Coordinate and implement a support programme to assist municipal IGR structures

Support programme developed and implemented to assist District Mu-nicipalities on IGR structures

None



Target Actual

43




Target Actual

Conduct institutional capacity and impact assessment of all IGR struc-tures in the Province

None Unclear role of Department as a single window of coor-dination

Number of established and func-tional IGR structures

Establish functional IGR structures in 7 Municipalities

All IGR structures established and functional in all Districts

None

Number of Municipalities under-standing different sources of rev-enue on National Fiscal and for-mula used for allocation

15 Municipalities understanding different sources of revenue on Na-tional Fiscus and formula used for allocation

All Municipalities have the under-standing of different sources of rev-enue on National Fiscus and formula used for allocation

None

Number of Action Plans imple-mented to address bottlenecks in Municipalities

21Action Plans implemented to ad-dress bottlenecks in Municipalities

All bottlenecks identified during the Ministerial Task Team and were ad-dressed through the development of Municipal Turnaround Strategies by all Municipalities

None

Number of preliminary meetings held with SALGA before any IGR Forum

Hold 4 Preliminary Meetings with SALGA before any IGR Forum

2 Technical PCFs and 1 Special Tech-nical PCF held

None

Number of twinning arrange-ments existing in the Province be-tween Municipalities and foreign counterparts

5 Twinning arrangements existing in the Province between Municipalities and foreign counterparts

3 Municipal Twinning arrangements existing for Thaba Chweu; Mbombe-la Local Municipalities and Ehlan-zeni District Municipality

Twinning arrangements are coordinated from the Pre-mier’s Office

Number of donor funding institu-tions at departmental and munici-pal levels identified to support lo-cal government

Mobilized and engaged donor fund-ing institutions to support local gov-ernment

None Mobilization of donor fund-ing coordinated from the Capacity Building sub-pro-gramme2 Donor funding institutions at the

departmental and municipal levels identified to support local govern-ment

None

Number of SDFs deployed in Mu-nicipalities

Mobilize and engage relevant stake-holders to mobilize service delivery support for municipalities

None Stakeholder mobilization and engagement is per-formed at Programme level

Number of partnerships entered with international and regional development institutions

Interacted with international and re-gional development institutions

None Interaction with interna-tional and regional devel-opment institutions is coor-dinated at Premier’s Office

2 partnerships entered with interna-tional and regional development in-stitutions

44




Target Actual

To ensure and support the smooth running of 2011 Local Govern-ment Elections

Number of Municipalities that held smooth local government elections in 2011

Assist the Municipal Demarcation Board with the delimitation of Wards

MDB was assisted with the finaliza-tion of Ward delimitation and all 18 Municipalities were visited.

None

Development of the Section 12 No-tices on establishment of new mu-nicipalities

Section 12 Notice on the determina-tion of Wards and Number of Coun-cillors developed and published

None

Section 12 Notice on the Number of Councillors contributed to the Dis-tricts from the Local Municipalities

Section 12 Notice on the Disestab-lishment of the DMA

Sub programmes/Programme: MUNICIPAL FINANCE


Target Actual

To monitor and support munici-palities to ensure financial viabil-ity and sustainable municipalities in accordance with applicable Acts

Number of Municipalities sup-ported with MFMA implementa-tion

21 Municipal Budgets approved All 21 Municipalities’ Budgets were approved by Councils

None

21 Annual Financial Statements sub-mitted

All 21 Municipalities submitted Fi-nancial Statements

None

21 Municipalities’ Supply Chain Management policies evaluated

All 21 Municipalities evaluated in terms of the policy, SCM unit and Committees

All Municipalities have SCM poli-cies, Units and Committees

None

21 municipalities monitored with Grant funding

All21 municipalities monitored and all Business Plans approved by Na-tional DCoG

Slow spending of Grant funding

Funds were disbursed in August 2010

Monthly and Quarterly Reports are prepared and submitted

45




Target Actual

Number of Municipalities sup-ported and monitored with the implementation of Municipal Property Rates Act

13 Municipalities with MPRA imple-mentation

19 Municipalities assisted with MPRA implementation

Ehlanzeni not collecting on property rates

Facilitated public hearing meetings on the review of MPRA

Lekwa and Nkomazi objec-tions still not addressed

Regulation for Rates Ratio forwarded to all municipal-ities for compliance

Number of municipalities moni-tored with the updating of Sup-plementary Valuation Rolls

Update 16 Supplementary Valuation Rolls

16 Municipal Supplementary Valua-tion Rolls updated

Lekwa, Thembisile Hani and Nkomazi have not yet updated their Supplemen-tary Valuation Rolls

Number of municipalities imple-menting Anti-Corruption Strate-gies

Support and monitor 21 Municipali-ties with Anti-corruption strategy

All 21 Municipalities were support-ed with Anti-corruption Strategies

Effectiveness of the Anti-corruption policies

10 Municipalities have an Anti-cor-ruption Policy / Fraud Prevention Plan implemented

Carry out investigations (Section 106 or requests by Municipalities as required

Carry out investigations (Section 106 or request by Municipalities) as re-quired

Section 106 investigations conduct-ed at the following Municipalities since April 2010:

Thembisile Hani (finalized)

Slow progress on criminal cases

Municipal requested investigations were conducted at the following mu-nicipalities by own staff:

Dipaliseng;

Pixley Ka Seme;

Albert Luthuli;

Thaba Chweu;

Nkomazi

Monitored the implementation of the recommendations on a monthly basis

46




Target Actual

Ensured that Criminal cases were opened with the SAPS

Number of Municipalities that have achieved unqualified audits

21 Municipalities that have achieved unqualified audit

10 Municipalities have achieved un-qualified audit opinion

Increase in the number of Municipalities receiving Disclaimers

Number of Operation Clean Au-dit Programmes rolled out

Implement Operation Clean Audit in 3 Districts

Reconstituted Operation Clean Audit Committees and the Action Plan in the 3 Districts

Request to the Auditor Gen-eral to provide manage-ment letters to municipali-ties

Number of Municipalities moni-tored in the implementation of Grant funding

Approval of MSIG Business Plans fa-cilitated in 21 Municipalities

All Municipalities were monitored with regard to MSIG

None

Monitor the spending of MSIG MSIG spending @ 42% Slow spending of the Grant

Number of municipalities sup-ported with financial viability

21 Billing system evaluated 4 Municipalities were supported with financial viability (Lekwa, Thembisile Hani, Thaba Chweu and Mkhondo)

Rapid Response Unit estab-lished and already working on a revenue enhancement programme

21 Municipalities’ revenue manage-ment evaluated

Number of municipalities sup-ported with debt collection

Assist 10 municipalities with debt collection

7 Municipalities were supported on Debt collection (Nkomazi, Msu-kaligwa, Bushbuckridge, Tembis-ile Hani, Ehlanzeni District, Thaba Chweu and Dr JS Moroka )

Rapid Response Unit es-tablished already and are working on revenue en-hancement programme

Number of Municipal cash flow status monitored

Monitor cash flow status of Munici-palities

All Municipalities’ cash flow status monitored and a report compiled

None

Number of municipalities assisted with risk assessments

Assist 11 Municipalities with risk as-sessments

11 Municipalities assisted with risk assessments (Ehlanzeni District; Albert Luthuli; Dipaliseng; Emak-hazeni; Victor Khanye; Nkomazi; Dr JS Moroka; Pixley Ka Seme; Msuka-ligwa; Lekwa and Thembisisle Hani)

None

MEC concurrence on upper limits Facilitate concurrence from the MEC on upper limits for 21 Municipalities

MEC concurrence on upper limits fa-cilitated at all 21 Municipalities

None

47


Sub programmes/Programme: PUBLIC PARTICIPATION


Target Actual

To encourage the involvement of communities and community or-ganizations in the matters of Local Government

Number of established and func-tional Ward Committees

365 Ward Committees capacitated to be functional

284 Ward Committees capacitated to be functional on Community Base Planning and Core Municipal proc-esses and service delivery

Lack of support from Mu-nicipalities

Ward Councillors not con-vening Ward Committee and Community Meetings

Do assessment for tools of trade for Ward Committees

Assessment for tools of trade for Ward Committees done in all Municipali-ties

All Municipalities not pro-viding stationery to Ward Committees

Develop and implement policy for support

Completed visits to KwaZulu-Natal and Limpopo for research purposes to inform the process of drafting the Framework for the Funding Model for Ward Committees

Unavailability of stakehold-ers to finalize draft frame-work

Implementation of the policy None Draft policy not yet finalized

Monitoring the implementation of the policy

None

Number of CDWs deployed in Municipalities

Conduct assessment to review impact of CDWs within municipalities

Reports and Case Studies received from CDWs on the impact of the pro-gramme within Municipalities

None

Placement and redeployment of CDWs

401 CDWs deployed in Municipali-ties

None

Recruitment of CDWs None Delays in finalizing the pro-filing process by HR

Deployment of CDWs None Short-listing and appoint-ment not done due to delays in finalizing the profiling process

Fill in vacancies where there is no CDW in a Ward

None

Conduct a culture review and pro-vide support to CDWs

Support in the coordination and im-plementation of the programme pro-vided to CDWs

None

Refresher course for CDWs Coordinated a Refresher course for all CDWs

None

Ensure each Ward has a CDW None Short-listing and appoint-ment not done due to delays in finalizing the profiling process

48




Target Actual

Number of Municipalities where full CDW programmes are imple-mented

18 Municipalities where full CDW programmes are implemented

Full CDW programme implemented in all 18 Local Municipalities

None

18 presentations on clarifications of roles and responsibilities of CDWs presented to Municipal Council Meetings

14 presentations on clarification of roles and responsibilities of CDWs presented to Municipal Councils of eMalahleni; Msukaligwa; Mbombe-la; Bushbuckridge; Thaba Chweu; Pixley Ka Seme; Govan Mbeki; Vic-tor Khanye; Thembisile Hani; Dipal-iseng; Lekwa; Steve Tshwete and eMakhazeni

4 presentations not done with 4 Municipalities since their Municipal Council scheduled were not pro-vided

Number of functional Ward Com-mittees

Monitor the re-establishment and functionality of Ward Committees in 12 Local Municipalities

The re-establishment and functional-ity of Ward Committees monitored in all 18 Local Municipalities

None

Number of MEC IZIMBIZO Hold 4 MEC IZIMBIZO None No clear location of the co-ordination of IZIMBIZO be-tween Public Participation and Communications

Number of Mayoral and Council-lors IZIMBIZO supported

Support 7 Mayoral and Councillors IZIMBIZO

8 Mayoral Outreach / IZIMBIZO were supported in the following Mu-nicipalities: Govan Mbeki; Msuka-ligwa; Bushbuckridge; Victor Khan-ye; Thembisile Hani; Steve Tshwete; Emakhazeni and Emalahleni

None

Number of municipalities involv-ing NGOs and CBO in their en-gagement with the public on mat-ters of service delivery

Ensure all Local Municipalities en-gage the public on matters of service delivery

19 Local Municipalities involved their communities on matters of service delivery

None

Number of community develop-ment workers conducting house-holds visits 4 days in a week

Circulation and input of the SLA to Sector Departments

None Legal Section finalizing in-puts

Singing of Service Level Agreements None

Number of CDWs recognized for excellent performance

95 CDWs graduating on the CDW programme

95 CDWs graduated on the CDW Programme

None

49




Target Actual

Number of workshops conducted Conduct Workshops in all 18 Local Municipalities

Workshops to all 18 Local Munici-palities conducted on Disaster Man-agement; Labour Relations; Thusong Service Centres; Human Resource Development; IDP; ICASA; DPSA; GCIS; Health; Transversal issues; Transformation; Social Develop-ment; IDASA, Department of Justice; Home Affairs; Safety and Security and SASSA

None

Number of Know your CDW Campaigns conducted

Conduct Know your CDW Cam-paign in all Municipalities

CDWs were introduced to commu-nities through Public Meetings

None

Communicated the CDW Pro-gramme through a Comprehensive Media Plan and Radio Phone-in Programmes

Rolled out through information leaf-lets; posters; MEC IZIMBIZO and through Comprehensive Rural De-velopment Programme

Number of Municipalities that have passed resolution on adopt-ed policy on Ward Committees

Monitor the participation of commu-nities in municipal processes

Monitored the participation of com-munities in Municipal IDP and Budg-et Consultation Process Meetings

None

Number of Municipalities as-sisted with the establishment of Public Participation units in terms of national policy framework on public participation

Support municipalities in the estab-lishment of Public Participation Units as per the National Framework

Monitored the establishment of Pub-lic Participation Units in all Munici-palities

Only 2 Municipalities complied with the Policy (Ehlanzeni District and Mbombela)

Number of District Speakers’ and Community Participation Coordi-nators Forums sitting facilitated

Facilitate 4 District Public Participa-tion Coordinators’ Forum Meetings

4 District Public Participation Coor-dinators’ Forum Meetings facilitated

None

Number of Mpumalanga Provin-cial Speakers’ and Community Participation Coordinators’ Forum Meetings coordinated

Coordinate 4 Provincial Public Participation Coordinators’ Forum Meetings

4 Provincial Public Participation Co-ordinators’ Forum Meetings coordi-nated

None

50




Target Actual

Ensure all Municipalities develop policy by-laws on multilingualism

Assist all Municipalities in develop-ing policy by-laws on the implemen-tation of the multilingualism

None Delays in the finalization of Draft Policy on Multilin-gualism

Monitor the implementation plan of roll out plan on Multilingualism

None

Number of municipalities re-sponding in time on developmen-tal issues and complaints

18 Municipalities responding in time on developmental issues and com-plaints

5 Municipalities responded in time on developmental issues and com-plaints

Petitions were not received from the other 13 Munici-palities

Number of information sharing sessions conducted

Conduct 60 monthly Information sharing sessions in the 3 Districts

54 Monthly information sharing ses-sions conducted in 18 Local Munici-palities

None

Sub programmes/Programme: SERVICE DELIVERY IMPROVEMENT UNIT


Target Actual

Facilitate the establishment of Service Delivery Unit o ensure the institutionalization of Batho Pele Principles

Number of Thusong Service Cen-tres established

Mobilize Service Providers in 4 Thu-song Service Centres

Established 3 Thusong Service Cen-tres (Klaarinet; Sakhile and Verena)

Delays in the procurement processes in the estab-lishment of Matsamo and Swalala TSCs

Mobilized Service Providers to render services at Sakhile TSC (Home Affairs; GCIS; Labour; Social Development; SASSA; Human Set-tlements; Education and SEDA

Operationalization of the 4 TSCs 4 Service Providers and 2 NGOs have already occupied office space and renders services at Klaarinet TSC

Lack of security and clean-ing personnel at Klaarinet TSC

Circulation and input of the Service Level Agreements to Sector Depart-ments

A Service level Agreement between the Department and SEDA has been finalized, awaiting HODs approval

Slow progress in the sign-ing of Service Level Agree-ments by Sector Depart-ments and non budgeting for the Thusong Service Centre programme

Slow progress in the finali-zation of the operational agreement by SEDA

51




Target Actual

Number of Lease and Service Agreements facilitated

Signing of Service Level Agreements 5 Lease Agreements have been signed between Msukaligwa Local municipality and Service Providers operating at Breyten Thusong Serv-ice Centre

The signing of Service Level Agreements by Sector de-partments, Municipalities and relevant stakeholders has been escalated to MU-NIMAN, MUNIMEC and PCF to expedite the process

Number of Municipalities provid-ed with management and support on TSC programme within a regu-latory framework

Development of terms of reference and appointment of Service Provid-ers

Terms of Reference submitted to Supply Chain Management, await-ing appointment of Service Providers

Slow progress in procure-ment processes

Monitor progress None

Number of Thusong Service Cen-tres maintained

Maintenance of Thusong Service Centres

None

Number of Sector Departments with updated Computer pro-grammes rendering services at Thusong Service Centres

Check the right infrastructure for net-work configuration

VSAT network test successfully done at Casteel Thusong Service Centres

DPSA to finalize installa-tions of data lines in other remaining TSCs without connectivity

DPSA and SITA have successfully in-stalled infrastructure for connectivity in Moremela and Mpuluzi

Administer the network infrastruc-ture

VSAT network test successfully done at Casteel TSC

DPSA to finalize installa-tions of data lines in other remaining TSCs without connectivity

DPSA and SITA have successfully in-stalled infrastructure for connectivity in Moremela and Mpuluzi

Number of Sector Departments coordinated to render services at TSCs as per demand

Identification of community needs Community needs identified and services are rendered at Sakhile TSC (SASSA; Agriculture and Social De-velopment)

Limited office space in Thu-song Service Centres

Services rendered at Klaarinet TSC includes Home Affairs; SAPS; SASSA and Social Development

Engagements of Sector Departments Engagements of Sector Department was done with Home Affairs; GCIS; Labour; Social Development; SAS-SA; Human Settlements; Education and SEDA

Lack of security at TSCs causing reluctance in serv-ice providers who are ready to occupy available office space at the Centres

52




Target Actual

Number of stakeholders coordi-nated to render services at Thu-song Service Centres as per the need

Identification of community needs Community needs identified and services are rendered at Sakhile TSC (SASSA; Agriculture and Social De-velopment)

Limited office space in Thu-song Service Centres

Services rendered at Klaarinet TSC includes Home Affairs; SAPS; SASSA and Social Development

Engagement of relevant stakeholders 4 Service Providers and 2 NGOs have already occupied office space and renders services at Klaarinet TSC

Lack of security at TSCs causing reluctance in serv-ice providers who are ready to occupy available office space at the Centres

Service Providers engaged and al-ready operating at Sakhile TSC

Number of Thusong Service Cen-tres launched

Engagement with relevant stakehold-ers with regard to the launching of 4 TSCs

Engagement with relevant stakehold-ers regarding the launch of Casteel TSC held

Insufficient budget to launch the remaining three (3) TSCs

Launching of Mbangwane; Casteel and Marapyane TSCs

Casteel Thusong Service Centre launched

Insufficient budget to launch the remaining three (3) TSCs

Number of Thusong Service Cen-tres provided with security

Appointment of Service provider for the installation of window and bur-glar doors, fencing, Sport lights and electric fence

None Insufficient budget to carry out the project

Installation of security measures in 5 TSCs (Marapyane, Wonderfontein, Mbangwane, Mpuluzi and Dag-gakraal TSCs

None Activity was not budgeted for

Number of municipalities imple-menting Batho Pele and Service Standards

Survey on the implementation of Batho Pele and service improvement programme

None Misalignment of sector pro-grammes on Batho Pele and Service Standards

Strategy to improve the implementa-tion of Batho Pele

Programme on Municipal visit for conducting surveys finalized

Duplication of Sector Pro-grammes on Batho Pele and Service Standards

53




Target Actual

Number of Municipalities, Sector Departments and Thusong Serv-ice Centres with approved Batho Pele Action Plan

Auditing of Municipalities and De-partmental Service Standards

Developed Departmental Service Standards and Service Charter

Delays on the approval of Service Standards

Workshops and training on the im-plementation of Service Delivery Im-provement Plans

None

Establishment and approval of serv-ice standards by Municipalities and the Department

Development of Service Delivery Im-provement Plans by Municipalities

Service Delivery Improvement Plans developed in all 21 Municipalities through the MTAS

Alignment of Municipal Turnaround Strategy, IDPs and Municipal Service De-livery PlansThree (3) District Committees were

established to coordinate mobile units in various Municipalities

Development of District Action plan is in progress

Approval and implementation of Service Delivery Improvement Plans by municipalities

None

Number of Municipalities pro-vided with management and sup-port on TSCs mobile units and E-governance within a regulatory framework

Development of terms of Reference and appointment of Service Provid-ers

Terms of Reference developed for Mobile Units Programme

None

Sub programmes/Programme: CAPACITY DEVELOPMENT


Target Actual

To strengthen the capacity of mu-nicipalities to perform their devel-opmental responsibilities

Number of municipalities with Work Skills Plan (WSP) adopted

Review the Work Skills Plan (WSP) Work Skills Plan was reviewed and municipalities were given access code to view their skills audit results from the GAPSKILLS website

Nkangala, Emalahleni and Steve Tshwete Work Skills Plans’ were not reviewed due to non auditing of these Municipalities

54




Target Actual

Adoption of Work Skills Plan Work Skills Plan adopted None

Work Skills Plan analyzed Work Skills Plan adopted None

Monitor the implementation of WSP 21 Municipal Work Skills Plans monitored

None

Identify the Gaps for reviewal proc-ess

Gaps were identified for review Unplanned training from Sector Departments and DBSA

Number of Workshops conducted for Municipal Public Accounts Committees

Conduct 3 Workshops on MPAC 1 Workshop conducted on MPAC Budgetary constraints

Number of Top 6 critical positions audited on level of qualification

Audit Top 6 critical positions in all 21 Municipalities

Audit on level of qualifications for Top 6 critical positions in munici-palities conducted

Some Municipalities re-quested the Accredited As-sessors to assess them

Questionnaires developed and dis-tributed for completion by Munici-palities

Number of competency assess-ments of Section 57 Managers conducted

Conduct Competency Assessments Qualification Audits were conducted Lack of capacity within the unit

Number of Municipal Support Plans developed

Develop 4 Municipal Support Plans 1 municipal Support Plan developed for all Municipalities

Budgetary constraints

Number of technical experts de-ployed in municipalities

Deployment of Technical Experts in Municipalities

13 technical Experts were deployed in Municipalities as follows:

Mbombela X2;

Nkomazi and uMjindi shared 1;

Albert Luthuli and Dipaliseng shared 1; Mkhondo and Pixley Ka Seme shared 1; Govan Mbeki 1; Bushbuck-ridge X2 and 1 young Professionals; Thembisile Hani X1; Emakhazeni X1; Lekwa X1; and Nkomazi have 1 young Professional

None

55




Target Actual

Number of Municipalities where shared services is implemented

1 Municipality with shared services implemented

None Limited budgets in Munici-palities

Number of Councillor Leadership Training Programmes implement-ed

Conduct Councillor Leadership training programme on roles and responsibilities, budgeting, financial management , IDP and LED

Conducted IDP Skills Programme in all Municipalities

Training Programme sus-pended pending the Elec-tion of New Councillors

Number of Professionalized Sen-ior and Middle Managers trained through tertiary institutions and professional bodies

Facilitate the training of 200 munici-pal officials on Local Government Accounting Certificate for the 3 Dis-tricts

89 officials from Ehlanzeni District completed module 1 and 2 of Finan-cial Management

None

71 Officials from Nkangala District completed Module 1 and 2 of finan-cial management

97 Officials from Gert Sibande Dis-trict completed Module 1 and 2 of Financial Management

Number of Municipalities trained on Ethics Management

Facilitate training on Ethics Man-agement for 3 District Municipali-ties (Ehlanzeni; Nkangala and Gert Sibande) and 9 Local Municipalities (Nkomazi; Bushbuckridge,; Lekwa; Dipaliseng; Emakhazeni; Steve Tsh-wete; Emalahleni; uMjindi and Msu-kaligwa)

None DCoG suspended the train-ing programme pending the elections of New Council-lors

Number of municipalities con-ducting skills audit

Facilitate Skills audit for 6 Local Mu-nicipalities and 1 District Municipal-ity (Thaba Chweu; Thembisile Hani; Dr JS Moroka; Emalahleni; Victor Khanye; Emakhazeni and Nkangala)

Skills Audit facilitated for 5 Local Municipalities (Thaba Chweu; Them-bisile Hani; Dr JS Moroka; Victor Kh-anye and Emakhazeni)

Nkangala and Emalahleni not audited due to strikes at these institutions

Number of support interventions implemented

Coordinate institutional capacity as-sessment for 6 Local Municipalities (Dipaliseng; Albert Luthuli; Steve Tshwete; Msukaligwa; Thaba Chweu and Bushbuckridge)

Institutional capacity assessment for 4 local municipalities coordinated (Dipaliseng; Albert Luthuli; Steve Tshwete and Thaba Chweu)

Programme for Bushbuck-ridge and Msukaligwa was suspended during the 201 FIFA World Cup and have since commenced.

Analyze reports of the capacity as-sessment for all the Districts

Citizen Reports were analyzed None

56


Sub programmes/Programme: MUNICIPAL PERFORMANCE MONITORING REPORTING AND EVALUATION


Target Actual

To monitor and evaluate capacity of municipalities and their com-pliance to relevant legislation

Number of institutional perform-ance management systems in place

Assessment of functional PMS sys-tems with recommendations

None Unit not have staffed

Monitor and report on implementa-tion of recommendations


Monitor and report on compliance None Unit not have staffed

Establishment of Performance Moni-toring System


1 System implemented None Unit not have staffed

Number of Section 57 Managers with signed employment con-tracts

100% of Section 57 Managers with signed employment contracts

all appointed Section 57 Managers have signed Employment Contracts

none

Number of Section 57 Managers with signed performance agree-ments

100% of Section 57 Managers with signed performance agreements

all appointed Section 57 Managers have signed Performance Agreement

none

Number of municipal quarterly performance reports submitted timeously

21 of municipal quarterly perform-ance reports submitted timeously


Number of municipal annual per-formance reports submitted time-ously

21 of municipal annual performance reports submitted timeously


Number of Municipalities with functional performance audit committees

11 Municipalities with functional performance audit committees

20 Municipalities have Audit Com-mittees in place, some have share services

Number of Municipalities with internal audit units

5 municipalities with internal audit units

20 Municipalities have established Audit units (Thaba Chweu does not have an Audit unit)

57


Programme 3: DEVELOPMENT AND PLANNING

Purpose:

To support and strengthen the capacity of Municipalities to enable them to fullfil their constitutional and other legislative mandate.


To strengthen and support institutional arrangements and legislative compliance systems

To strengthen and support intergovernmental relations system across the Province

To facilitate good governance and improve financial management in Municipalities

To encourage involvement of communities and community organizations in the matters of local government

To facilitate the establishment of a Service Delivery Unit to ensure the institutionalisation of Batho Pele principles

Strengthen the capacity of municipalities to perform their developmental responsibilities

Monitor and evaluate performance of municipalities and their compliance to relevant legislation

Service Delivery Objectives and Indicators:

Sub programmes/Programme: SPATIAL PLANNING


Target Actual

Coordinate and support spatial planning in the Province and Mu-nicipalities

Number of municipalities with credible SDFs adopted by Coun-cils

Develop evaluation tool & identify SDFs to be evaluated

All 21 municipalities have SDFs. Most of the reviews al-though finalized before end of Provincial Gov-ernment financial year, were not adopted by mu-nicipalities. This includes Emalahleni; Dr JS Moroka; Thembisile Hani; Steve Tshwete; Mkhondo; Pixley Ka Seme; Lekwa; Albert Luthuli; Thaba Chweu and Mbombela

Develop evaluation tool & identify SDFs to be evaluated

7 reviewed SDFs in Nkangala were finalized with 2 adopted by the re-spective Councils. The adoption of the remaining 5 will be done in 2011/12.

Review and / or develop 21 SDFs 4 reviewed SDFs were finalized in the Gert Sibande District with one adopted by the Council. The adop-tion of the remaining 3 reviewed SDFs will be done in 2011/12

3 reviewed SDFs in Ehlanzeni were finalized and adopted by the re-spective Councils. 2 Other SDF re-view processes are midway through. (Mbombela and Albert Luthuli)

58


Sub programmes/Programme: SPATIAL PLANNING


Target Actual

Review and align municipal spa-tial plans with the Integrated Spa-tial Framework (ISF)

Number of Municipal SDFs re-viewed and aligned to the PSDF and PGDS

Review all 21 SDFs 21 Municipal SDFs were evaluated against PSDF and PGDS

The IDP assessment frame-work used to evaluate the alignment between the SDFs and the PGDS and PSDF is less effective and outdated

Sub programmes/Programme: INTEGRATED DEVELOPMENT PLANNING


Target Actual

To promote effective and efficient integrated development and plan-ning

Number of credible IDPs re-viewed and adopted

21 IDPs reviewed Reviewed 21 Municipal IDPs None

Conduct a Provincial Development Planning Implementation Forum

1 Provincial Development Planning Implementation Forum conducted

None

All identified assessment queries ad-dressed

Assessment queries were all ad-dressed

none

Planning process for the new review of 2011/12

All Municipalities submitted their process plans

Amendment of a number of process plan due to Nation-al Treasury Circular No.54

Overall assessment of submitted municipal IDPs

Number of Municipal IDPS as-sessed and submitted

Assess 21 IDPs All 21 IDPs were assessed and sent back to Municipalities with MEC comments

Delays in communication on MEC comments due to the change of leadership

2010/11 IDP Analysis for the 3 Dis-tricts conducted

Consolidated the 2010/11 Provincial IDP Analysis Report

Mkhondo Draft IDP was not ready for assessment at the time of the process

Conducted the IDP Analysis for 2011/12 Draft IDP for Nkangala Dis-trict Municipality

Sector Departments priori-ties not incorporated in the Draft IDPs of the Munici-palities

59


Sub programmes/Programme: INTEGRATED DEVELOPMENT PLANNING


Target Actual

Build capacity in municipalities or institutions of Traditional Lead-ership and community structures on IDPs

Number of municipalities and in-stitutions of traditional leadership trained and participate in IDP processes

Conduct training for all House of Tra-ditional Leaders

Conducted three (3) District work-shops with all Traditional Authorities and Councils to create equal under-standing of the active role and par-ticipation in IDP structures as man-datory

Not all Traditional Leaders and Traditional Councils were present in all the 3 Districts

Sub programmes/Programme: LAND USE MANAGEMENT


Target Actual

Facilitate and support land use management systems

Number of municipalities support-ed towards developing & main-taining their land use management system and schemes

Support all 18 Local municipalities LUMS guideline & specifications still being drafted.

Legislative gap for instituting LUMS

Supported 6 Municipalities towards the development of wall-to-wall land use schemes (Bushbuckridge; Nkomazi; Dr JS Moroka; Thembisile Hani; Emakhazeni and Albert Luthuli)

Financial difficulties within municipalities compromises the undertaking of LUMS

Currently supporting 4 Municipali-ties in finalizing their wall-to-wall schemes (Govan Mbeki; Mkhondo; Pixley Ka Seme and Lekwa)

Provide support and build capac-ity on LUMS for Municipalities and Local Houses of Traditional Leaders

Number of Municipalities and lo-cal Houses of Traditional Leaders provided with capacity

Provide support and build capacity in 21 Municipalities and 3 local houses of Traditional Leaders

6 Municipalities were identified for support (Thaba Chweu; Mkhondo; Albert Luthuli; Pixley Ka Seme; Them-bisile and Dipaliseng)

Staff capacity challenges within the Department, the Department of Agriculture, Rural Development and Land Admin and within DBSA

Other Municipalities were identified for varying degrees and type of sup-port

Land use management support pro-vided to municipalities undergoing development of LUMS.

Limited planning support was secured and provided by DBSA and DARDLA.

Training material developed to assist municipalities and traditional leaders

60


Sub programmes/Programme: LOCAL ECONOMIC DEVELOPMENT


Target Actual

To strengthen development through LED strategies that have emphasis on rural development

Number of Municipalities with LED strategies / plans reviewed annually

Review all LED strategies Basic assessment of all LED strate-gies for 2010/11 done during the IDP Analysis Week

None

All municipalities engaged in review process

None

Gert Sibande: Pixley Ka Seme, Mkhondo and Dipaliseng have not adopted LED strategies

Mkhondo do not have a dedicated LED official

Dipaliseng resolved to con-tract out implementation plan development before submitting LED Strategy to Council

Nkangala: Thembisile Hani has not adopted LED Strategy and at Emalahleni the extensive review not concluded

Phase 3 of strategy devel-opment processes delayed due to financial constraints preventing DEDET from ap-pointing Service Provider(s)

Ehlanzeni: Bushbuckridge has not adopted LED Strategy

Bushbuckridge Strategy submitted twice to Council

Final amendments con-cluded and awaiting adop-tion

Development of at least 7 bankable projects in targeted local municipali-ties and 3 District projects

COGTA LED intervention facilitated the removal of land claim blockages on Dundonald Shopping Complex

Progress at slow pace due to financial and capacity constraints in supporting departments and entitiesCOGTA LED has established process

with National Lottery Board,

Social development and Department of Culture, Sport and Recreation to increase uptake of national lottery funds for CBOs and municipalities in the deep rural areas of the Province

61




Target Actual

Project support & resource mobili-zation rendered for Soya/Oil seed investment incentives (Lekwa); Truck Stop (Mkhondo); Dutch support for Agriculture projects (Nkomazi); Public-Private Business Node in Ma-rapyane (Dr JS Moroka); Dundonald Shopping Centre (Albert Luthuli) DWA Youth Water management Project; Eskom Fly Ash Project

At least 4 000 job opportunities cre-ated through CWP implementation in Albert Luthuli and Bushbuckridge Municipalities

A total of 4279 job opportunities were created (DCoG figures through CWP implementation in Albert Luthuli (1,799 in 3 wards) and Bush-buckridge (2,480 in 10 wards)

None

Facilitated training of participants through EPWP

Number of Municipalities with LED structures

21 Municipalities with LED struc-tures

Guidelines developed for inclusion in Provincial Framework

Thaba Chweu do not have a structured Led unit due to financial constraints, or a Portfolio committee or an external stakeholder forum due to the political turmoil that led to the municipality being placed under Section 139(b)

20 Municipalities have internal and/or external LED structures in place

Integrated Provincial LED Strategy adopted by EXCO

Integrated Provincial LED Strategy adopted by EXCO

Draft provincial LED Framework concluded and consulted with key provincial public sector stakeholders

Postponement of Provincial LED Summit delayed final consultation with stake-holders on key components of Provincial LED Frame-work

M&E System to monitor impact of LED intervention and support in Municipalities

M&E System to monitor impact of LED intervention and support in Mu-nicipalities

M&E Tool for LED in piloting stage in Bushbuckridge Local municipality and Ehlanzeni District Municipality

M&E System roll-out de-layed due to delays in ap-pointing Service Provider for pilot by GIZ(MRDP)

62




Target Actual

Functional Provincial LED Forum in place

Functional Provincial LED Forum in place

Provincial LED Forum established and functional

None

LED webpage through active button on COGTA webpage signed off

Sub programmes/Programme: MUNICIPAL INFRASTRUCTURE


Target Actual

To coordinate and monitor basic infrastructure development in all municipalities

Number of municipalities that have registered project on MIS

Support 19 municipalities to register projects on MIG-MIS

19 Municipalities supported to regis-ter their projects on MIG-MIS

None

Number of Municipalities submit-ted monthly Reports on MID

19 Municipalities submitted monthly reports on MIG performance

19 Municipalities have submitted MIG Monthly Performance Reports

None

Number of Municipalities sup-ported on MIG spending and commitments

19 Municipalities supported on MIG spending and commitment

19 Municipalities were supported on commitments, however, there is slow progress with the following munici-palities: Bushbuckridge; Mbombela; Emalahleni; Dr JS Moroka; Emak-hazeni; Albert Luthuli; Msukaligwa; Pixley Ka Seme; Thembisile Hani; Lekwa and Mkhondo

Late registration of projects against their MIG allocation

Slow procurement proc-esses

Currently the total commitment is @98% and expenditure @42% for the 2010/11 financial year

Poor planning by Munici-palities and slow procure-ment processes delayed the appointment of Consultants and Contractors

Support on completion of Delmas Water Treatment Plant

100% completion of the Water Treat-ment Plant

The project is 100% completed Commissioning to be final-ized once boreholes and pumps project is completeWater Treatment Plant operational

and handed over

Support on completion of Del-mas 25km bulk water pipeline (phase1)

Phase 1 of the pipeline fully funded and under construction

Phase 1 of the pipeline not fully funded as a result of escalations

Underestimation of the project cost during the sign-ing of the Memorandum of Understanding (MOU)

63


Sub programmes/Programme: MUNICIPAL INFRASTRUCTURE


Target Actual

Phase 1 pipeline completed

Provincial interventions with 31 Water boreholes met

31 Boreholes drilled and operational The extended project scope for the Delmas boreholes and pumps project is at final stages of comple-tion, while the 26 boreholes were not implemented due to financial constraints

None

Boreholes projects handed over 10 Boreholes drilled and equipped in Daagakraal (Thaba Chweu) pend-ing electrical connections by Eskom

Awaiting Eskom procure-ment process

Support completion of Bethal Electricity Network rehabilitation project (phase2)

Phase 2 under construction None Lack of funding for the project

100% completion of Phase 2 project

Sub programmes/Programme: DISASTER MANAGEMENT


Target Actual

To facilitate, support and coor-dinate the development of the disaster management plans and effective functionality of the dis-aster management centre in the province

Number of District Municipalities with applicable DM framework

Facilitate the development, monitor-ing and support the implementation of District Municipal DM frame-works

DM frameworks developed and ap-proved in Gert Sibande and Nkan-gala Districts

Ehlanzeni – a draft frame-work developed and in process of alignment with the Provincial framework

Number of capacity assessments conducted on fire services

Number of Disaster management Advisory Forum coordinated

Conduct risk assessment

Support and advise the Province through Disaster Management Advi-sory Forum on disaster related issues

Assessment on fire services conduct-ed in 4 Municipalities (Emakhazeni; Lekwa; Victor Khanye and Albert Luthuli)

A profile on the fire services equip-ment compiled

3 Provincial Disaster Management advisory Forum Meetings held

None

2010 FIFA World Cup com-promised the sitting of 1 Advisory Forum

64




Target Actual

Number of Inter-governmental Disaster Management Commit-tees established

Establishment/Coordination of Inter-governmental Disaster Management Committees

3 inter-governmental Disaster Man-agement Committees established (Disaster Management Technical Committee; Disaster Management Political Committee and the Provin-cial Disaster Management Advisory Forum

These structures are interlinked and functional

None

Number of responses to Disaster Management incidents and sup-port for disaster relief programme

Ensure the functionality of Provincial and District Disaster Management Centres

Ehlanzeni District Disaster Manage-ment Centre is fully functional and 8 incidents were supported.

Nkangala District Disaster Manage-ment centre is functional and sup-ported 5 incidents

Gert Sibande District Disaster man-agement centre is functional and supported 6 incidents

The Provincial Centre supported all 19 incidents

Nkangala and Gert Sibande Disaster Management Cen-tres are in place but needs to be equipped to ensure maximum functionality

Facilitate and support the develop-ment of 21 municipal Disaster Man-agement Plans

16 Municipalities have Disaster Management Plans

Alignment of the 5 Munici-pal Plans with the policy Framework not finalized

Establish a Provincial Warehouse for Disaster Relief

Temporary Provincial Warehouse es-tablished at Vintonia Warehouse.

None

Permanent Warehouse at Provin-cial Disaster Management Centre (PMDC)

Number of relief material pro-vided

Provision of disaster relief material as per demand

Provided 175 blankets to orphans at Secunda.

None

Provided 40 blankets to needy fami-lies during the Departmental Man-dela Day Celebration in Rossenekal

65




Target Actual

Thaba Chweu (Mashishing) – Provid-ed clothes to the Fire victims

Mkhondo – supplied with 200 blan-kets

Lekwa – supplied with 200 blankets

Number of Disaster Management Plans monitored

Monitor 11 Municipalities on Disas-ter Management Plan

All 21 Municipalities’ Disaster Man-agement Plans were monitored and analyzed.

5 Municipal Plans not com-pliant with the policy

16 Plans were found to be compliant to the Disaster management Frame-work

Number of ICT systems devel-oped and implemented

Develop and implement the ICT sys-tems

None There were delays in the appointment of Service Pro-vider, however, Service Pro-vider has been appointed to develop and implement the ICT systems

Number of Provincial events pro-vided with safety and security

Coordinate safety and security in all Provincial events

53 events were coordinated includ-ing international events (FIFA World Cup 2010; Commonwealth Parlia-mentary Association and internation-al Forestry Indaba). All events were incident free

None

Number of Awareness Campaigns conducted

Conduct 6 Awareness Campaigns in Local Municipalities

6 Awareness Campaigns were con-ducted in Nkomazi (Jeppes Reef; Buf-felspruit; Driekoppies; Langeloop; Phiva/Mdladla; Mangweni; Vuku-zenzele and Masibekela); Thaba Chweu (Mashishing); Albert Luthuli (lone Hill; Ferni and Carolina); Msu-kaligwa (Wesselton – Ext.3); Thembi-sile Hani (Goederede A & B; Kwag-gafontein D & E; Vlaglaagte No.2 and Mloto); Dr JS Moroka (Mkomet-sane and Pietjieskraal); Conducted 8 Radio Talk Shows on Ligwalagwala and Ikwekwezi FM Radio Stations and aired two jingles that ran for 2 Weeks each.

66


Programme 4: TRADITIONAL INSTITUTION MANAGEMENT

Purpose:

To support, strengthen and capacitate the developmental capacity and capability of traditional and royal councils to accelerate rural development


To manage institutional administrative and financial framework for Traditional Leadership Institutions.

Draw and implement administrative policy guidelines and capacity building programmes.

To support and coordinate rural development in all traditional council areas.


Sub programmes/Programme: TRADITIONAL INSTITUTION MANAGEMENT


Target Actual

Managed the institutional admin-istration and financial framework of traditional institutions

Number of Traditional Councils complying to financial prescripts

59 traditional Councils capacitated with relevant financial prescripts

59 Traditional Councils capacitated on financial prescripts and compli-ance monitored

None

Number of Traditional Councils complying with administrative prescripts

59 traditional Councils capacitated with relevant administrative pre-scripts

38 Traditional Leaders capacitated and monitored on administrative prescripts impacting on Traditional Leadership

Non-attendance of some Traditional Councils

Number of Traditional Councils supported with anthropological services

Ensure that genealogical (family tress) processes are monitored and updated for 59 Traditional Councils

20 Traditional Councils’ genealogi-cal processes (family trees) moni-tored and updated

Inner Royal families do not honour meetings

Number of Traditional Councils assigned with roles and functions

Assign roles and functions to 59 Tra-ditional Councils

Roles and functions of Traditional Councils assigned and monitored to 59 Traditional Leaders

Non

8 vehicles not handed over due to inner royal family disputesTools of trade policy approved and

57 vehicles procured and 49 handed over to Traditional Leaders

67


Sub programmes/Programme: TRADITIONAL RESOURCE MANAGEMENT


Target Actual

Draw and implement administra-tive policy and capacity building programmes

Number of administrative policy guidelines developed

59 traditional Councils capacitated on policy development

Capacitated 59 Traditional Councils on policy development

None

Number of cultural ceremonies supported

44 traditional Councils supported with cultural ceremonies

Supported 26 traditional coun-cils with cultural ceremonies (Enkhaba; Mantjolo; Mandlama-khulu; Mlambo; Mpakeni; Duma; Ebutsini; Ndzundza Pungutsha; Enikwakuyengwa; Kgarudi; Mdhluli; Msogwaba; Mpsikazi; Masoyi; Man-dlangampisi; Emfumbeni; Mjindini; Ndlela; Nzunza-Fene; Madubukela; Ndzundza-Somphalali; Ndzundza-Mabhoko; Gutshwa Embhuleni and Manala Mbhongo)

Postponement of cultural events due to observance of bereavement rituals and family disputes

Number of Traditional Councils that received grants

Review and check the submission of Section 38 (j) certificate

Collected the 38 (j) certificates from Traditional Councils

None

Facilitate the transfers of Annual Grants to 59 Traditional Councils

Transfer of Annual Grant to 58 Tradi-tional Councils facilitated and moni-tored

Bank Account of Mahl-aphahlapha Traditional Council is inactive due to signatoroies dispute over administration of the Ac-counts

Number of functional Traditional Councils

59 traditional Councils supported in the implementation of their resolu-tions

None Delays in the finalization of the operationalization of the reconstituted traditional councils

Number of Headmen/women paid

Facilitate payment of Headmen/women

Payment of salaries to 522 headmen/women facilitated

Facilitated payment for 57 Tradition-al Leaders and 2 proclaimed Kings

None

Number of decisions on disputes and claims executed

Support the independent Commis-sion on Traditional Disputes and Claims

7 Chieftaincy succession disputes and 4 Traditional Leadership Claims attended

Lengthy processes inherent in resolving disputes

Advertised and received applications for Provincial Committee on disputes

Delay on the appointment resulted in re-advertisement

68


Sub programmes/Programme: RURAL DEVELOPMENT FACILITATION


Target Actual

Coordinate and support Rural Development in all Traditional Council areas

Number of Traditional Councils coordinated and supported on ac-cess to community services

59 Traditional Councils supported and monitored on access to commu-nity services

Supported and monitored 59 Tradi-tional Councils on access to com-munity services

None

Number of Traditional Councils capacitated and support pro-grammes adopted

Develop a Framework on participa-tion of traditional councils at provin-cial and municipal level

A Draft Framework for the Participa-tion of Traditional Leaders at Provin-cial and District levels submitted to Technical Permier Coordinating Fo-rum (PCF) for consideration and en-dorsement

None

Partnership framework adopted and complied with in all 59 traditional Councils

None Traditional Councils not operational

Framework implemented, supported and monitored in all 59 Traditional Councils


Number of Traditional Councils supported for infrastructure de-velopment

Infrastructure developed by renovat-ing 10 Traditional Council Offices

9 out of 10 Traditional Council Of-fices renovated

Lack of contract manage-ment

Number of Traditional Councils supported on rural development linkages with municipalities and province

Capacitate 59 Traditional Councils on rural development

59 Traditional Councils capacitated on rural development

None

Number of Tindlunkulu Pro-grammes developed

Bench marking with other Provinces on Tindlunkulu programmes

Study tour to identified Provinces conducted and benchmarking estab-lished

None

Consultation with stakeholders on the drafted plan

Consulted with stakeholders on the Draft Plan in all Districts

None

Finalization and approval of the Plan None Delays in finalizing consul-tations

69


Sub programmes/Programme: TRADITIONAL LAND ADMINISTRATION


Target Actual

Facilitate the registration of land rights and settlement of land dis-putes in traditional areas

number of Traditional Councils supported on traditional land rights registration

Framework on land rights registra-tion for all 59 Traditional Councils developed, negotiated, adopted and monitored implementation

Framework not developed Traditional Councils not operational

Supported 3 land formalization (land rights) projects within Bush-buckridge (community resolution for land formalization obtained) and Mbombela

Administrative capacity at Traditional Council level

Number of traditional land dis-putes settled

Resolutions of traditional land dis-putes facilitated as and when they arise amongst Traditional Councils

Disputes being resolved affecting the following Traditional Councils : Masoyi X2 stands disputes Molalla v/s Mogane – boundary:

Nkambeni v/s Mr Sibiya, Mdluli, Matsamo v/s Tshtshe stand; Makoko v/s Dove Tail Development project, Ndzundza Fene v/s Mashaba Mol-oto stands,Mpisikazi v/s Khomon-dani (Boundary encroachment) and Mawewe involvement in mining is-sues

Lack of training (traditional community) on land ad-ministration

Number of Traditional Councils supported to establish land com-mittees

Develop, adopt and implement framework on land committees in 59 Traditional councils


Develop traditional land zoning / use plan

Facilitated development of Spatial Plans for Bushbuckridge, Mbombela and Nkomazi municipalities

None

Monitored compliance with tradi-tional land use plans


70


Programme 5: HOUSE OF TRADITIONAL LEADERS

Purpose:

To provide strategic and political leadership to the House of Traditional Leaders

Strategic Objective:

To exercise oversight and participate in the promulgation of legislations by the provincial legislature and implementation of service delivery by government on matters of African culture, customs, traditions as well as the general welfare of traditional communities


Sub programmes/Programme: ADMINISTRATION OF THE HOUSE OF TRADITIONAL LEADER


Target Actual

To provide strategic and political leadership to the HTL

Executive Committee Meetings To convene 24 Executive Committee Meetings

15 Executive Committee Meetings convened


Sittings of the House Convene 4 Sittings of the House 4 Sittings convened None

Chairperson’s Forum meetings Convene 4 Chairperson’s meetings 2 Chairperson’s Forum Meetings conducted


Sub programmes/Programme: OFFICE OF THE SECRETARY


Target Actual

To provide effective administra-tion to the Houses of Traditional Leaders

Reports from Units and Sections Receive 120 reports from units and sections

100 reports from Units and Sections were received


Sub programmes/Programme: RESEARCH POLICY AND PLANNING


Target Actual

Conduct research, policy devel-opment and planning within the HTL

Number of Genealogical Reports updated

Update 10 Genealogical Reports Budgetary constraints and structural problems

Number of cultural profiles devel-oped

Develop 10 Cultural Profiles 3 Cultural Profiles developed

71


Sub programmes/Programme: RESEARCH POLICY AND PLANNING


Target Actual

Number of policies developed Develop 5 policies None

Number of policies reviewed Review 5 policies None

Number of Plans developed Develop 2 plans 1Strategic Plan Session convened to develop a Plan

Sub programmes/Programme: LEGAL SERVICES


Target Actual

To facilitate promulgation of legis-lations and handle litigation cases

Number of litigation cases hand-ed

Handle litigation cases as per de-mand

5 Litigation achieved None

Legislations To regulate the INGOMA Bill INGOMA Bill submitted to State Law Advisors

None

Facilitate promulgation legisla-tion and submissions of Bills

Promulgation of 4 legislations and submission of Bills

5 Submission of Bills achieved None

Sub programmes/Programme: COMMITTEES AND LOCAL HOUSES


Target Actual

To coordinate Committees and Local Houses

Sittings and meetings Convene 18 Sittings and 120 meet-ings

18 sittings and 70 meetings con-vened with minutes

Budgetary constraints and structural problems

Site visits Conduct 3 site visits 18 Site visits conducted None

Monitoring reports Produce 74 monitoring reports 6 monitoring reports produced Budgetary constraints and structural problems

Collaboration reports Produce 9 collaboration reports 20 draft Collaboration reports pro-duced

None

Workshop reports Produce 6 workshop reports None Budgetary constraints and structural problems

72


Sub programmes/Programme: JUSTICE AND LEGISLATION COMMITTEE


Target Actual

Number of meetings held Hold 24 meetings 20 meetings were achieved budgetary constraints and structural problems

Number of capacitating reports Convene 3 capacitating reports 3 Capacitating reports produced None

Number of training workshops conducted

Produce 9 Workshop reports 11 Workshop reports produced None

Sub programmes/Programme: SOCIAL DEVELOPMENT COMMITTEE


Target Actual

To coordinate trainings and work-shops

Number of meetings held Hold 24 meetings Achieved 24 meetings None

Number of monitoring reports Produce 24 monitoring reports 25 monitoring reports produced None

Number of workshops conducted Conduct 9 training workshops None budgetary constraints and structural problems

Sub programmes/Programme: TARGET GROUPS COMMITTEE


Target Actual

To coordinate target groups Number of meetings held Convene 24 meetings 27 meetings convened None

Number of monitoring reports Produce 12 monitoring reports 20 monitoring reports produced None

Sub programmes/Programme: TRADITIONAL LEADERSHIP CLAIMS AND DISPUTE COMMITTEE


Target Actual

To handle disputes and succes-sions

Number of meetings held Convene 24 meetings 36 meetings were convened None

Number of disputes and succes-sion reports compiled

Compile 100% dispute and succes-sion reports

Finalized the recognition Certificates of Chieftaincy for the following Inner Royal Families: Mhaule; Mashego and Mogane

None

73


Sub programmes/Programme: TRADITIONAL CULTURE AND CUSTOMS COMMITTEE


Target Actual

To coordinate culture and cus-toms

Number of meetings held Convene 24 Committee Meetings 22 Committee Meetings were con-vened


Number of Monitoring Reports Produce 24 monitoring reports 27 Monitoring Reports were pro-duced

None

74


PART 3REPORT OF THE AUDIT

COMMITTEE

PART 3REPORT OF THE AUDIT

COMMITTEE



REPORT OF THE AUDIT COMMITTEE

We are pleased to present our report for the financial year ended 31 March 2011.

Report of the Audit Committee Members and Attendance:

During the current financial year 8 audit committee meetings were held. Interac-tive meetings are held between the Chairperson and the Internal Audit Unit as the need arises. The meeting attendance details during the 2010/11 financial year were as follows:

Name of Member (Current Audit Committee) Number of Meetings AttendedMs R Kalidass 8

Dr H Jooste 6

Mr AF Keyser 7

Mr K Buthelezi 3

Ms G Denier 7

Audit Committee Responsibility

We report that we have adopted appropriate formal terms of reference in our charter in line with the requirements of Section 38(1)(a) of the Public Finance Management Act, No. 1 of 1999 and Treasury Regulation 3.1. We further report that we conducted our affairs in compliance with this charter.

The Audit Committee also reports that it has adopted appropriate formal terms of reference as its audit committee charter, has regulated its affairs in compliance with this charter and has dis-charged all its responsibilities as contained therein.

The effectiveness of internal control

The system of internal controls is designed to provide cost effective assurance that assets are safe-guarded and that liabilities and working capital are efficiently managed. The system of internal control applied by the department over financial and risk management is effective, efficient and transparent..

In accordance with the PFMA and the King III Report on Corporate Governance requirements, Internal Audit provides the Audit Committee and management with assurance that the internal controls are appropriate and effective.

This is achieved by means of the risk management process, as well as the identification of correc-tive actions and suggested enhancements to the controls and processes. From the various reports of the Internal Auditors, the Audit Report on the Annual Financial Statements and the management letter of the Auditor-General, it was noted that no significant or material non compliance with pre-scribed policies and procedures have been reported. Accordingly, we can report that the system of internal control for the period under review was effective and efficient.

A number of internal control deficiencies were highlighted by the Auditor-Generals Management Letter. Management will be required to compile an “action plan” to ensure that these issues are not reported in forthcoming financial years, of which the Audit Committee will actively monitor the progress being made in this regard.

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

The Audit Committee is satisfied with the content and quality of monthly and quarterly reports prepared and issued by the Accounting Officer and the Department during the year under review.

The Audit Committee will monitor the processes and procedures designed and implemented to ensure that there an improvement in the quality of performance information for the forthcoming financial year.

Evaluation of Financial Statements

Audit Committee has:

• Reviewed and discussed the audited annual financial statements to be included in the annual report, with the Auditor-General South Africa and the Accounting officer.

• Reviewed the Auditor-General South Africa’s management report and management’s response thereto;

• Reviewed the department’s compliance with legal and regulatory provisions; and

• Reviewed significant adjustments resulting from the audit.

We concur with and accept the Auditor-General of South Africa’s report on the annu-al financial statements, and are of the opinion that the audited annual financial state-ments should be accepted and read together with the report of the Auditor-General South Africa.

Internal audit

We are satisfied that the internal audit function is operating effectively and that it has addressed the risks pertinent to the department in its audits.

Auditor-General South Africa

We have met with the Auditor- General South Africa to ensure that there are no unresolved issues.

Conclusion

The Audit Committee would like to take this opportunity to congratulate the Governance and Traditional Affairs “Emphasis of Matter” will be continuously followed up that they do not recur in the forthcoming financial year.

We would like to extend our appreciation to the Honorable MEC, HOD, CFO and Officials for the support and co-operation afforded to us during the year.

We look forward to a successful 2011/12 financial year.

_____________________________________RACHEL KALIDASS CA (SA)AUDIT COMMITTEE CHAIRPERSON29 JULY 2011


PART 4REPORT OF THE

AUDITOR GENERAL

PART 4REPORT OF THE

AUDITOR GENERAL


REPORT ON THE FINANCIAL STATEMENTS

Introduction

1. I have audited the accompanying financial statements of the Department of Coopera-tive Governance and Traditional Affairs, which comprise the appropriation statement, the statement of financial position as at 31 March 2011, and the statement of financial performance and cash flow statement for the year then ended, and a summary of sig-nificant accounting policies and other explanatory information, as set out on pages 88 to 157.

Accounting officer’s responsibility for the financial statements

2. The accounting officer is responsible for the preparation of these financial statements in accordance with the Departmental Financial Reporting Framework prescribed by the National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and the Division of Revenue Act of South Africa, 2010 (Act No. 1 of 2010) (DoRA), and for such internal control as management determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-General’s responsibility

3. As required by section 188 of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996) and section 4 of the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), my responsibility is to express an opinion on these financial statements based on my audit.

4. I conducted my audit in accordance with International Standards on Auditing and General Notice 1111 of 2010 issued in Government Gazette 33872 of 15 December 2010. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

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

REPORT OF THE AUDITOR-GENERAL TO THE MPUMALANGA LEGISLATURE ON THE FINANCIAL STATEMENTS OF VOTE NO. 4: DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS.

evaluating the overall presentation of the financial statements.

6. I believe that the audit evidence I have obtained is sufficient and appropriate to pro-vide a basis for my audit opinion.

Opinion

7. In my opinion, the financial statements present fairly, in all material respects, the fi-nancial position of the Department of Cooperative Governance and Traditional Affairs as at 31 March 2011, and its financial performance and cash flows for the year then ended in accordance with the Departmental Financial Reporting Framework prescribed by the National Treasury and the requirements of the PFMA and DoRA.

Emphasis of matter

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

Irregular expenditure

9. As disclosed in note 24 to the financial statements, irregular expenditure of R6 963 000 was incurred, due to irregularities in the procurement process and overspending on the budget for compensation of employees.

Additional matter

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

Financial reporting framework

11. The financial reporting framework prescribed by the National Treasury and applied by the department is a compliance framework. Thus, my opinion would have reflected that the financial statements had been properly prepared instead of fairly presented as required by section 20(2)(a) of the PAA, which requires me to express an opinion on the fair presentation of the financial statements of the department.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

12. In accordance with the PAA and in terms of General Notice 1111 of 2010 issued in Government Gazette 33872 of 15 December 2010, I include below my findings on the annual performance report as set out on pages 16 to 74 and material non-compliance with laws and regulations applicable to the department.

79


Predetermined objectives

Usefulness of information

13. The reported performance information was deficient in respect of the following criteria:

• Consistency: The reported objectives, indicators and targets are not consistent with the approved annual performance plan.

• Measurability: Indicators are not well defined and verifiable, and targets are not specific, measurable and time bound.

14. The following findings relate to the above-mentioned criteria:

• The actual achievements with regard to 29% of all planned indicators and targets specified in the strategic plan for the year under review were not included in the report on predetermined objectives submitted for audit purposes.

• For the selected programmes, 48% of the planned and reported indicators were not clear, as unambiguous data definitions were not available to allow for data to be collected consistently.

Reliability of information

15. The reported performance information was deficient in respect of the following criteria:

• Validity: The reported performance did not occur and does not pertain to the entity.

• Accuracy: The amounts, numbers and other data relating to the reported actual performance have not been recorded and reported appropriately.

• Completeness: All actual results and events that should have been recorded have not been included in the reported performance information.

16. The following audit finding relates to the above criteria:

• For targets on local governance, the source information or evidence provided was not valid and accurate.

Compliance with laws and regulations

Annual financial statements

17. The accounting officer submitted financial statements for auditing that had not been prepared in all material aspects in accordance with generally recognised accounting practice, as required by section 40(1)(a) and (b) of the PFMA. The material misstatements identified by the AGSA with regard to disclosures were subsequently corrected.

Procurement and contract management

18. Awards were made to bidders who did not submit an SBD4 form declaring whether the bidder or any person connected with the bidder has a relationship with persons involved in the evaluation of the award or is employed by the state, as per the require-ments of Practice Note 7 of 2009-10 issued in terms of section 76(4)(c) of the PFMA.

19. The accounting officer did not take effective and appropriate steps to prevent irregu-lar expenditure, as per the requirements of section 38(1)(c)(ii) of the PFMA and Treasury Regulation 9.1.1.

Expenditure management

20. The accounting officer did not take effective and appropriate steps to prevent irregu-lar expenditure, as per the requirements of section 38(1)(c)(ii) of the PFMA. The irregular expenditure incurred related to overspending on employee cost.

Non-compliance with regulatory requirements

21. The department did not maintain an effective, efficient and transparent system of internal control regarding performance management, which described and represented how the department’s processes of performance planning, monitoring, measurement, review and reporting were conducted, organised and managed, as required by section 38(1)(a)(i) and (b) of the PFMA.

INTERNAL CONTROL

22. In accordance with the PAA and in terms of General Notice 1111 of 2010 issued in Government Gazette 33872 of 15 December 2010, I considered internal control rel-evant to my audit, but not for the purpose of expressing an opinion on the effectiveness of internal control. The matters reported below are limited to the significant deficiencies that resulted in the findings on the annual performance report and the findings on com-pliance with laws and regulations included in this report.

Leadership

23. The department did not have an updated, approved organisational structure to en-sure that adequate and sufficiently skilled resources were in place and that performance

80


was monitored.

24. The accounting officer did not establish adequate controls to ensure proper per-formance reporting and compliance with laws and regulations.

Financial and performance management

25. The department did not prepare regular, accurate and complete financial and per-formance reports that were supported and evidenced by reliable information.

26. Material misstatements in the financial statements were identified during the audit, certain of which were corrected by management .These misstatements were not pre-vented or detected by the department’s system of internal control.

Governance

27. The department did not implement appropriate risk management activities to en-sure that risks identified were addressed and reduced to an acceptable level. A fraud prevention plan was also not implemented to ensure that the risks relating to fraud were adequately addressed.

OTHER REPORTS

Investigations completed during the financial year

28. An investigation was conducted to probe the alleged irregular appointment of a service provider. The investigation resulted in disciplinary steps to be taken against the employee.

Mbombela

31 July 2011

81


PART 5ANNUAL FINANCIAL

STATEMENTS

PART 5ANNUAL FINANCIAL

STATEMENTS


TABLE OF CONTENT

PAGE NO

Report of the Accounting Officer 84-87

Appropriation Statement 88-104

Notes to the Appropriation Statement 105-106

Statement of Financial Performance 107

Statement of Financial Position 108-109

Cash Flow Statement 110

Accounting Policies 111-115

Notes to the Annual Financial Statement 116-132

Disclosure Notes to the Annual Financial statement 133-148

Annexure to the Annual Financial Statement 149-158

83


1. General review of the state of financial affairs

1.1. Important policy decisions and strategic issues facing the Department

During the May 2010 policy and budget speech, the MEC for Co-operative Governance and Traditional Affairs, made an announcement that the Department will purchase 59 vehicles for the 59 Traditional Councils. The department concluded a policy on tools of trade for the Traditional Councils that has been approved by EXCO and enabled the department to procure the 59 vehicles for the Traditional Councils.

The department diverted funds that were appropriated for other activities to make funds available for the purchase of the 59 vehicles. The change of plans has been submitted and approved by cabinet through the adjustment appropriation bill of November 2010.

1.2 Comment on significant events that have taken place during the year

The department continued with section 139 (1) (b) interventions in Lekwa, Mkondo, Thaba Chweu and Thembisile Hani Local Municipalities. Thaba Chweu and Mkhondo Local Municipalities interventions were lifted during the year and placed under after care support.

1.3 Comment on major projects undertaken or completed during the year

The Department continued from 2009/10 financial year with the following major projects for the year under review:

• Disaster Management centre (DMC): the Department was supposed to have completed the DMC in November 2009 but due to delays, the project is practically complete and shall be commissioned during the course of 2011/12 financial year.

• Delmas Water Purification Plant – the Department was supposed to have completed the project by the end of March 2010 but the project was delayed due to bad weather conditions and is now practically complete.

The department procured all 59 vehicles for the traditional leaders and this includes the two Kings, eight of these cars remain undelivered due to disputes within the affected traditional councils.

1.4 Spending trends

The Department’s main appropriation for 2010/11 was R404.093 million and has been no adjustment for the year. The Department spent R380.143 million or 94.1%. The department incurred R6.963 million the irregular expenditure, R6.127 is due to over spending in compensation of employees in programme 02 and R0.836 is due to irregular procurement of which disciplinary action has been concluded.

As disclosed in note 5.3 of the annual financial statement, the Department spent R6.976 million on legal fees mainly due the implementation investigations and Disciplinary process in terms of section 106 of the Municipal Systems Act, No 32 of 2000 in eMalahl-eni and Nkomazi Local Municipality as well as Ehlanzeni District Municipality.

The Department continued with interventions in terms of section 139 (1) (b) of the con-stitution and spent R20.49 million on salaries of Administrators and support staff.

DEPARTMENT OF CO-OPERATIVE GOVERNANCE & TRADITIONAL AFFAIRSVOTE 4

REPORT OF THE ACCOUNTING OFFICER for the year ended 31 March 2011

REPORT OF THE ACCOUNTING OFFICER TO THE EXECUTIVE AUTHORITY AND PARLIAMENT/PROVINCIAL LEGISLATURE OF THE REPUBLIC OF SOUTH AFRICA

84


Co-operative Governance and Traditional Affairs

R Thousands Main Budget Total Adjustments

Adjusted Budget

Final Vire-ment

Final Budget

Actual to the end of March 2011

Outcome as % Budget

Projections from March

2011

(Over) / underspending

% (Over) / underspending

Programmes

Administration 109,128 12,144 121,272 (3,170) 118,102 115,564 97.9% - 2,538 2.1%

Local Governance 149,656 -17,145 132,511 - 132,511 132,549 100.0% - (38) 0.0%

Development and Planning 68,568 16,100 84,667 (59) 84,608 65,071 76.9% - 19,537 23.1%

Traditional Institutional Management 65,610 -13,083 52,527 2,729 55,256 54,129 98.0% - 1 127 2.0%

The House of Traditional Leaders 11,131 1,985 13,116 500 13,616 12,830 94.2% - 786 5.8%

TOTAL 404 093 - 404 093 - 404 093 380 143 94.1% - 23 950 5.9%

Economic classification

Compensation of Employees 216,717 -8,940 207,777 207,777 213,904 102.9% - (6,127) -2.9%

Goods & Services 129,094 -21,912 107,182 107,182 93,920 87.6% - 13,262 12.4%

Payments to financial assets - 331 0.0% - (331) 0.0%

Total transfers & Subsidies 7,080 2,500 32,080 (130) 31,950 22,272 69.7% - 9,678 30.3%

House Holds 500 500 130 630 621 98.6% - 9 1.4%

Capital Payments 50,702 5,852 56,554 56,554 49,095 86.8% - 7,459 13.2%

Total 404 093 - 404 093 - 404 093 380 143 94.1% - 23 950 5.9%

1.5 Virement:

During the year, the Department made virement of funds from programme two and four to programme three and one in order to fund unfunded projects i.e. Delmas and Disaster Management Centre in programme three and the purchase of vehicles for Traditional Leaders. All these virements were done during the November 2010 budget adjustment period.

The virements were done to defray eminent over spending in programme three and the approval of the Accounting Officer and Cabinet was solicited.

2. Service rendered by the department

2.1 The Department has rendered amongst others following services: .

a) Access to basic services with marginal access increased in the water, sanitation and electricity

• 835 298 out 909 812 households, representing 91.6% of the household have access to basic water

• 722 932 out of the 941 980 households who registered for electricity, have

access to electricity

b) Improvement of financial management in some of our municipalities:

• 2009/10 financial audits three of our municipalities got clean audit i.e. Victor Khanye, Steve Tshwete and Ehlanzeni Distict Municipalitty

• 8 Municipalities got unqualified and its i.e. Lekwa, Govan Mbeki, Ehlanzeni, Mbombela, Gert Sibande and Nkangala District municipality

c) A team of experts have been assembled through the response unit (RRU) to sup port the Municipalities

d) Created 4276 job opportunities through community works programme

e) We have supported 7 bankable projects in 5 identified local municipalities and 3 District Municipalities

f) Reviewed, assessed and adopted 20 credible and reliable IDPs

g) Tools of trade policy approved and 59 vehicles procured and 51 handed over

h) 10 Traditional council offices renovated

85


2.2 Tariff policy

The Department does not have any tariff policy as there no goods or services that are offered for fee.

2.3 Free Services

No free services are rendered by the department.

2.4 Inventories

The total inventories on hand at year-end are included in the Annexure on Inventory.

3. Capacity constraints

The Department is faced with serious capacity challenges; this includes the capacity on Municipality support in terms of quality and quantity of personnel including financial constraints. The capacity constraint affects the department in the sense that the depart-ment can not intervene timely to support municipalities without contracting consultants and this turn out to be a very expensive exercise.The establishment of rapid response unit is meant to remedy the capacity challenges facing the department.

The establishment of rapid response unit is meant to remedy the capacity challenges facing the department.

4. Utilisation of donor funds

Department does not have donor funds.

5. Trading entities and public entities

No trading or Public entity is attached to this Department.

6. Organisations to whom transfer payments have been made

The Department made transfer payments to the Traditional Councils as listed in Annex-ure 1 to the Annual Financial Statements.

The Department transferred R15.312 million to Rand Water Board for the Delmas Bulk Water pipe.

7. Public private partnerships (PPP)

No Public private partnership was entered into by the department.

8. Corporate governance arrangements

8.1 Risk Management Approach

The Internal Audit Unit is a shared service and is residing with the Office of the Premier. The unit assisted in managing risk a risk assessment process and monitoring of risk man-agement in the department. During the year the department appointed an Accounting

Firm to assist with risk assessment and the compilation of risk register. The Department has also established a risk management committee for the monitoring the implementa-tion of the risk management strategy but was not operating for the year under review.

8.2 Fraud Prevention Plan

A fraud prevention plan was developed and is reviewed on an annual basis after the risk assessment process has been finalized by the Internal Audit unit. The plan contains policies, practices, procedures, reports and other mechanisms to monitor and safeguard the assets of the Department. The Internal Audit Unit monitors from time to time the compliance to these policies and procedures. Reports on findings are directed to the Accounting Officer.

8.3 Internal Audit and Audit Committees

The Internal Audit Unit has been facilitating the risk assessment exercise and compiling a fraud prevention plan. The unit has a yearly audit programme of conducting compli-ance audits to check adherence on policies and procedures. The Department has a fully functional Audit Committee shared with other Departments. These Departments are the Office of the Department of Human Settlements, Premier, Department of Culture, Sports and Recreation and the Department of Safety and Security.

8.4 Other Government Structures (including management processes to minimize conflict of interest)

The Department has set up structures to ensure compliance to legislative requirements, policies and procedures:

• The Department has a Five-Year Strategic Plan. This document provides the overarching objectives that are to be achieved over the strategic plan period.

• The Department also has an Annual Performance Plan (MTEF period). This planning document details the Departments priorities for the three years MTEF period.

• The Department has developed an Annual Performance Plan (1 year). This documents details the outputs to be achieved during the current financial year and the budgeted funds to achieve each output. This document forms the basis of per formance agreements with officials at all levels.

• Executive Senior Management Committee which sits every Tuesday of every 2nd week to monitor performance by Managers.

• Senior Management Members meet on a monthly basis to discuss performance on service delivery targets, signing of Performance agreements and management.

• The Department has the following Team Committees to ensure participatory man agement and sound governance:


- Bid Committees;

- The Bursary Committee, that recommends the allocation of bursaries; and

- The Transport Committee, effects controls on the approval of subsidized vehicles and the usage of Government vehicles.

8.5 Code of Conduct

TThe Department has a Supply Chain Management Code of Conduct displayed in all Departmental Offices. The Department is also guided by the Code of Conduct as con-tained in the Public Service Act.

8.6 Health and Safety and Environmental issues

The Department has an Emergency Disaster Recovery Plan and its primary focus is an emergency response to a disaster that could destroy or severely cripples the Department central computer system, building and personnel.

9. Discontinued activities/activities to be discontinued

No activity that was discontinued

10. New/proposed activities

The commissioning of the Delmas bulk water pipeline that will be constructed by Rand Water, has commenced in January 2011 as per agreement signed by CoGTA, Depart-ment of Water Affairs and Victor Khanye Local Municipality. The Department has con-tributed R15.312 million for the year under review and is expected to contribute another R12 million in the 2011/12 financial year.

The department has started with the installation of the Disaster Management Centre command system at a cost of R10 million.

The department has established the Rapid Response Unit in order to strengthen the sup-port to Municipalities on financial management and technical support services.

11. Asset management

The Department has captured all assets in the asset register and has complied in all material respect with Asset Management Reforms and all minimum requirements have been complied with.

12. Events after the reporting date

There are no events that took place after the report statement that such an estimate can-not be made.

13. Performance information

There is a monthly reporting where quality controls and checks are done continuous in terms of the template. The programme Manager of each section compiles monthly re-ports using the Annual Performance Plan and a Detailed Implementation Plan. The Pro-gramme Manager verifies the data and submits the report to Planning and Programme Management section.

The information/data or the report is analysed against the APP and Detailed Implemen-tation Plan for deviation and accuracy. If there are differences/gaps noticed in the report, the programme manager of the said report is consulted and engaged to correct the infor-mation. The programme manager again re-submits the report signed it off as correct and submits to Planning and Programme Management.

After the information has again being verified by Planning it is submitted to the HOD’s Office. The HOD verifies the information, if find discrepancies, the report is taken back to the Planning section to the Programme manager who corrects and re-submit again to Planning and finally submitted to the HOD. If there is a need of the HOD to engage direct the Programme Manager again on one on one then it is corrected following the above process.

The department undergoes a quarterly performance review session where all pro-grammes reports, engage and agree on the planned and actual outputs. Finally the HOD signs it off as correct then submitted to the relevant offices i.e. Provincial Treasury and Premier’s office- Monitoring and Evaluation Section.

14. Approval

The Annual Financial Statements set out on pages 88 to 158 have been approved by the Accounting Officer(s)

______________________________

Mr. MD Mahlobo Head of Department

Date: 31 May 2011



APPROPRIATION STATEMENTS for the year ended 31 March 2011

Appropriation per programme

20010/11 2009/10

APPROPRIATION STATEMENT Adjusted Appropriation

Shifting of Funds

Virement Final Appropriation

Actual Expenditure

Variance Expenditure as % of final

appropriation

Final Appropriation

Actual Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

1. ADMINISTRATION

Current payment 95,992 - (3,300) 92,692 91,718 974 98.9% 79,682 74,876

Transfers and subsidies 500 - 130 630 621 9 98.6% 500 223

Payment for capital assets 23,190 - - 23,190 21,709 1,481 93.6% 7,300 2,941

Payment for financial assets - - - - - - - - -

119,682 - (3,170) 116,512 114,048 2,464 87,482 78,040

2. LOCAL GOVERNANCE

Current payment 129,511 - 129,511 132,549 (3,038) 102.3% 118,536 117,008

Transfers and subsidies - - - - - - - -

Payment for capital assets 3,000 - 3,000 - 3,000 - - -

Payment for financial assets - - - - - - - -

132,511 - 132,511 132,549 (38) 118,536 117,008

3. DEVELOPMENT & PLANNING

Current payment 29,303 - 29,303 22,042 7,261 75.22% 36,986 32,443

Transfers and subsidies 25,000 - (59) 24,941 15,312 9,629 61.4% 10,000 10,000


Payment for financial assets - - - 331 (331) - - -

84,667 - (59) 84,608 65,071 19,537 151,650 168,924




4. TRADITIONAL INSTITUTIONAL MANAGEMENT

Current payment 45,447 - 2,800 48,247 47,169 1,078 97.8% 57,883 47,358

Transfers and subsidies 7,080 - (71) 7,009 6,960 49 99.3% 5,900 4,930

Payment for capital assets - - - - - - - 105 38


52,527 2,729 55,256 54,129 1,127 - 63,888 52,326

5. THE HOUSE OF TRADITIONAL LEADERS

Current payment 13,116 - 500 13,616 12,830 786 95.3% 1,500 1,460

Transfer and subsidies - - - - - - - - -

Payment for capital assets - - - - - - - - -


13,116 - 500 13,616 12,830 786 - - -

Subtotal 402,503 - - 402,503 378,627 23,876 94.1% 421,556 416,298

Statutory Appropriation

Current payment 1,590 - - 1,590 1,516 - 95.3% 1,500 1,460

Transfers and subsidies - - - - - - - - -



- - - - - - -

TOTAL 404,093 - - 404,093 380,143 23,876 94.1% 423,056 417,758






2010/11 2009/10

FinalAppropriation

ActualExpenditure

FinalAppropriation

ActualExpenditure

TOTAL (brought forwad) 404,093 423,056

Reconcilliation with statement of financial performance

-

ADD

Departmental receipts 1,954 1,759

Direct Exchequer receipts -

Aid assistance

Actual amounts per statement of financial performance (total revenue) 406,047 424,815

ADD

Aid assistance

Direct Exchequer payments

Prior year unauthorised expenditure approved without funding

Actual amounts per statement of financial performance (total expenditure) 380,143 417,758

90


Appropriation per economic classification

2009/11 2009/10

Adjusted Appropriation

Shifting of Funds


Actual Expenditure

Variance Expenditure as % of final ap-

propriation

Final Appropriation

Actual Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

Current payments

Compensation of employees 206,187 - - 206,187 212,388 (6,201) 103.0% 185,577 176,149

Goods and services 107,182 - - 107,182 93,920 13,262 87.6% 107,510 95,536

Interest and rent on land - - - - - - - - -

Transfers and subsidies

Provinces and municipalities - - - - - - - 10,000 10,000

Departmental agencies and accounts - - - - - - - - -

Universities and technikons - - - - - - - - -

Foreign governments and international organisations - - - - - - - - -

Public corporations and private enterprises 25,000 - (59) 24,941 15,312 9,629 61.4% - -

Non-profit institutions 7,080 - (71) 7,009 6,960 49 99.3% 5,900 4,930

Households 500 - 130 630 621 9 98.6% 500 223

Gifts and donations - - - - - - - -

Payments for capital assets

Buildings and other fixed structures 27,864 - 4,420 32,284 27,406 4,878 84.9% 93,964 123,282

Machinery and equipment 28,625 - (4,420) 24,205 21,627 2,578 89.3% 18,105 6,178

Heritage assets - - - - - - - - -

Specialised military assets - - - - - - - - -

Biological assets - - - - - - - -

Land and subsoil assets - - - - - - - - -

Software and other intangible assets 65 - - 65 62 3 95.4% - -

Payments for financial assets - - - - - - - - -

Total 402,503 - - 402,503 378,627 22,876 94.1% 421,556 416,298



91



APPROPRIATION STATEMENT for the year ended 31 March 2011

Statutory Appropriation

2010/11 2009/10

Direct changes against the National/ Provincial Revenue Fund


Shifting of Funds


Actual Expenditure

Variance Expenditure as % of final appropria-

tion

Final Appropriation

Actual Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

List all direct charges against the National/Provin-cial Revenue Fund

President and Deputy President salaries

Member of executive committee / parliamen-tary officers

1,590 - - 1,590 1,516 74 95.3% 1,500 1,460

Judges and magistrates salaries

Sector education and training authorities (SETA)

National Skills Fund

Total 1,590 - - 1,590 1,516 74 95.3% 1,500 1,460

Statutory Appropriation per economic classification

2010/11 2009/10

Program 1 Per Economic classification


Shifting of Funds


Actual Expenditure


tion

Final Appropriation

Actual Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

Current payments

Compensation of employees 1,590 - - 1,590 1,516 74 95.3% 1,500 1,460

Goods and services - - - - - - - - -


Total 1,590 - - 1,590 1,516 74 95.3% 1,500 1,460

92


2010/11 2009/10

Detail per sub-programme Adjusted Appropriation

Shifting of Funds


Actual Expenditure


tion

Final Appropriation

Actual Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

1.1 OFFICE OF THE MEC

Current payment 4,217 - - 4,217 4,710 (493) 111.7% 4,995 4,111




1.2 CORPORATE SERVICES

Current payment 91,775 - (3,300) 88,475 87,008 1,467 98.3% 74,687 70,765

Transfers and subsidies 500 - 130 630 621 9 98.6% 500 223



Total 119,682 - (3,170) 116,512 114,048 2,464 97.9% 87,482 78,040



93


2010/11 2009/10

Economic classification Adjusted Appropriation

Shifting of Funds


Actual Expenditure

Variance Expenditure as % of final appropriation

Final Appropriation

Actual Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

Current payment

Compensation of employees 41,818 41,818 44,121 (2,303) 105.5% 37,059 36,708

Goods and services 54,174 (3,300) 50,874 49,113 1,761 96.5% 42,623 38,168


Transfers and subsidies to:

Provinces and municipalities - -

Departmental agencies and accounts - -

Universities and technikons - -

Foreign governments and international organisations

- -

Public corporations and private enterprises - -

Non-profit institutions - -

Households 500 130 630 621 9 98.6% 500 223

Gifts and donations - -

Payment for capital assets

Buildings and other fixed structures 20 20 20 100% 300

Machinery and equipment 23,125 (20) 23,105 21,627 1,478 93.6% 7,000 2,941

Heritage assets - -

Specialised military assets - -

Biological assets - -

Land and subsoil assets

Software and other intangible assets 65 65 62 3 95.4%

Payments for financial assets -

Total 119,682 - (3,170) 116,512 115,564 948 99.2% 87,482 78,040



94


2010/11 2009/10

Details per programme Adjusted Appropriation

Shifting of Funds


Actual Expenditure


Final Appropriation

Actual Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

2.1 Office Support

Current payment 169 - - 169 133 36 78.7% 442 120




2.2 Municipal Administration

Current payment 7,585 - 7,585 6,258 1,327 82.5% 10,837 9,856


Payment for capital assets - - - - - - - -

Payment for financial assets - - - - - - - -

2.3 Municipal Finance

Current payment 29,987 - 29,987 35,891 (5,904) 119.7% 15,828 25,708




2.4 Public Participation

Current payment 89,281 - 89,281 88,351 930 99.0% 88,190 78,694


Payment for capital assets - - 3,000 - 3,000 - - -

Payment for financial assets 3,000 - - - - - - - -

2.5 Capacity Development

Current payment 2,409 - 2,409 1,841 568 76.4% 2,457 1,955



Payment for financial assets

DEPARTMENT OF CO-OPERATIVE GOVERNANCE & TRADITIONAL AFFAIRS

VOTE 4


95




2010/11 2009/10


Shifting of Funds


Actual Expenditure


Final Appropriation

Actual Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

2.6 Municipal Performance Monitoring, Reporting and evaluation

Current payment 80 - - 80 75 5 93.8% 782 675



Payment for financial assets - - - - - -

Total 132,511 - - 132,511 132,549 (38) 100.0% 118,536 117,008

96


2010/11 2009/10


Shifting of Funds


Actual Expenditure


Final Appropriation

Actual Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

Current payments

Compensation of employees 105,164 - 105,164 112,072 (6,908) 106.6% 93,027 88,099

Goods and services 24,347 - 24,347 20,477 3,870 84.1% 25,509 28,909



Provinces and municipalities - - - - - - - - -



Foreign governments and international organisations - - - - - - - - -

Public corporations and private enterprises - - - - - - - - -

Non-profit institutions - - - - - - - - -

Households - - - - - - - - -

Gifts and donations - - - - - - - - -


Buildings and other fixed structures 3,000 - 3,000 - 3,000 - - -

Machinery and equipment - - - - - - - - -



Biological assets - - - - - - - - -


Software and other intangible assets - - - - - - - - -

Payments for financial assets - - - - - - - - -

Total 132,511 - 132,511 132,549 (38) 100.0% 118,536 117,008



97


2010/11 2009/10


Shifting of Funds


Actual Expenditure


Final Appropriation

Actual Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

3.1 OFFICE SUPPORT 1,984 - - 1,984 1,698 286 85.6% 2,126 1,895

Current payment - - - - - - - - -




3.2 SPATIAL PLANNING

Current payment 257 - 257 293 (36) 114.0% - -




3.3 DEVELOPMENT ADMINISTRATION/ LAND USE MANAGEMENT

Current payment - - - - - - - -




3.4 INTERGRATED DEVELOPMENT AND PLANNING

Current payment 5,194 - - 5,194 3,453 1,741 66.5% 2,098 2,205



Payment for financial assets 331 (331)

3.5 LOCAL ECONOMIC DEVELOPMENT (LED)

Current payment 3,764 - - 3,764 4,038 (274) 107.3% 4,589 4,547



Payment for financial assets


VOTE 4

DEVELOPMENT AND PLANNING for the year ended 31 March 2011

98


2010/11 2009/10


Shifting of Funds


Actual Expenditure


Final Appropriation

Actual Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

3.6 MUNICIPAL INFRASTRUCTURE

Current payment 9,777 - - - 9,777 3,828 60.8% 20,996 18,205

Transfer and subsidies 25,000 - - - 24,941 9,629 61.4% 10,000 10,000

Payment for capital assets 9,864 - - (59) 14,264 3,934 72.4% 49,464 68,354

Payment for financial assets - - - 4,400 - - - - -

3.7 DISASTER MANAGEMENT

Current payment 8,327 - - 8,327 6,611 1,716 79.4% 7,177 5,591

Transfer and subsidies - - (4,400) - - - - - -

Payment for capital assets 20,500 - - 16,100 17,056 (956) 105.9% 55,200 58,127


Total 84,667 - (59) 84,608 65,071 19,537 76.9% 151,650 168,924


VOTE 4


99


2010/11 2009/10


Shifting of Funds


Actual Expenditure


Final Appropriation

Actual Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

Current payments

Compensation of employees 17,703 - - 17,703 14,902 2,801 84.2% 14,703 12,953

Goods and services 11,600 - - 11,600 7,140 4,460 61.6% 22,283 19,490



Provinces and municipalities - - - - - - 10,000 10,000

Departmental agencies and accounts - - - - - - - -

Universities and technikons - - - - - - - -


- - - - - - - -

Public corporations and private enterprises 25,000 - (59) 24,941 15,312 9,629 61.4% - -


Households - - - - - - - - -

Gifts and donations - - - - - - - -


Buildings and other fixed structures 24,864 - 4,400 29,264 27,386 1,878 93.6% 93,664 123,282

Machinery and equipment 5,500 - (4,400) 1,100 - 1,100 - 11,000 3,199

Heritage assets - - - - - - - -

Specialised military assets - - - - - - - -

Biological assets - - - - - - - -

Land and subsoil assets - - - - - - - -

Software and other intangible assets - - - - - - - -

Payments for financial assets - - - - - - - -

Total 84,667 - (59) 84,608 65,071 19,537 76.9% 151,650 168,924


VOTE 4


100


2010/11 2009/10


Shifting of Funds


Actual Expenditure


Final Appropriation

Actual Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

4.1 OFFICE SUPPORT

Current payment 1,233 - - 1,233 1,097 136 89.0% 1,225 4




4.2 TRADITIONAL INSTITUTIONAL ADMINISTRATION

Current payment 16,266 - - 16,266 17,165 (899) 105.5% 2,024 1,517




4.3 TRADITIONAL RESOURCE ADMINISTRATION

Current payment 17,982 - 2,800 20,782 19,834 948 95.4% 21,334 17,970

Transfers and subsidies 7,080 - (71) 7,009 6,960 49 99.3% 5,900 4,930



4.4 RURAL DEVELOPMENT FACILITATION

Current payment 8,288 - - 8,288 7,486 802 90.3% 18,718 16,934




4.5 TRADITIONAL LAND ADMINISTRATION

Current payment 1,678 - - 1,678 1,587 91 94.6% 14,582 10,933


Payment for capital assets - - - - - - - 105 38


Total 52,527 - 2,729 55,256 54,129 1,127 98.0% 63,888 52,326


VOTE 4

TRADITIONAL INSTITUTIONAL MANAGEMENTfor the year ended 31 March 2010

101


2010/11 2009/10


Shifting of Funds


Actual Expenditure


Final Appropriation

Actual Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

Current payments 33,472 - - 33,472 35,360 (1,888) 105.6% 40,788 38,389

Compensation of employees 11,975 - 2,800 14,775 11,809 2,966 79,9% 17,095 8,969








- - - - - - - - -

Public corporations and private enterprises

Non-profit institutions 7,080 - (71) 7,009 6,960 49 99.3% 5,900 4,930

Households - - - - - - - - -


Households - - - - - - - - -


Buildings and other fixed structures - - - - - - - - -

Machinery and equipment - - - - - - - 105 38






Total 52,527 - 2,729 55,256 54,129 1,127 98.0% 63,888 52,326


VOTE 4


102


2010/11 2009/10


Shifting of Funds


Actual Expenditure


Final Appropriation

Actual Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

5.1 ADMINISTRATION OF HOUSE OF TRADI-TIONAL LEADERS

Current payment 1,233 - - 1,233 1,097 136 89.0% 1,225 4




5.2 COMMITTEE AND LOCAL HOUSE OF TRADITIONAL LEADERS

Current payment 4,285 - - 4,285 3,686 599 86.0% - -




Total 13,116 - 500 13,616 12,830 786 94.2% - -


VOTE 4


103


2010/11 2009/10


Shifting of Funds


Actual Expenditure


Final Appropriation

Actual Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

Current payments 8,030 - - 8,030 7,449 581 92.8% - -

Compensation of employees 5,086 - 500 5,586 5,381 205 96.3% - -








- - - - - - - - -

Public corporations and private enterprises


Households - - - - - - - - -


Households - - - - - - - - -


Buildings and other fixed structures - - - - - - - - -

Machinery and equipment - - - - - - - - -






Total 13,116 - 500 13,616 12,830 786 94.2% - -


VOTE 4


104


1. Detail of transfers and subsidies as per Appropriation Act (after Virement):

Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-H) to the Annual Financial Statements.

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

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

3. Detail on financial transactions in assets and liabilities

Detail of these transactions per programme can be viewed in the note on Financial transactions in assets and liabilities to the Annual Financial Statements.

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

4.1 Per Programme Final Appropriation Actual Expenditure Variance R’000 Variance as a % of Final Appropriation

Administration 118,102 115,564 2,538 2%

Local Governance 132,511 132,549 (38) 0%

Development & Planning 84,608 65,071 19,537 23%

Traditional Institutional Management 55,256 54,129 1,127 2%

The House of traditional Leaders 13,616 12,830 786 6%

TOTAL 404,093 380,143 23,950 6%


VOTE 4

NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 2011

ADMINISTRATION

The under spending of R2,538 million on goods and services due to the Change Management project that never took off (R1.761 million) and a saving of R1.481 million that was budgeted for the purchase of traditional leaders vehicle .

LOCAL GOVERNANCE

The programme over spent by R0.38 million as a result of section 139 interventions that were not budgeted for.

DEVELOPMENT & PLANNING

The programme under spent by R19,537 million as a direct result of Delmas bulk water pipe project that started late (R9.629 million), MIG impact assessment project that started in February 2011 (R4.46 million) and the command system of the disaster management centre (R2.978 million)

TRADITIONAL INSTITUTIONAL MANAGEMENT

The over spending of R1.127 is due to salaries of traditional leaders.

HOUSE OF TRADITIONAL LEADERS

The under spending of R0.786 million is on goods and services and compensation of employees

105


4.2 Per Economic classification

Final Appropriation Actual Expenditure Variance Variance as a % of Final Appropriation

R’000 R’000 R’000 R’000

Current payments:

Compensation of employees 207,777 213,904 (6,127) (3)%

Goods and services 107,182 93,920 13,262 12%

Interest and rent on land - - - -

Unauthorised expenditure approved - - - -

Transfers and subsidies:

Provinces and municipalities 10,000 10,000 - 0%

Departmental agencies and accounts - - - -

Universities and technikons - - - -

Public corporations and private enterprises 24,941 15,312 9,629 39%

Foreign governments and international organisations - - - -

Non-profit institutions 7,009 6,960 49 1%

Households 630 621 9 1%

Gifts and donations - - - -

Payments for capital assets:

Buildings and other fixed structures 32,284 27,406 4,878 15%

Machinery and equipment 24,205 21,627 2,578 11%

Heritage assets - - - -

Specialised military assets - - - -

Biological assets - - - -

Land and subsoil assets - - - -

Software and other intangible assets 65 62 3 5%

Payments for financial assets - 331 (331) -

Total 404,093 380,143 23,950 6%


VOTE 4

NOTES TO THE APPROPRIATION STATEMENTS for the year ended 31 March 2011

106


PERFORMANCE Note 2010/11 2009/10R’000 R’000

REVENUEAnnual appropriation 1 402,503 421,556Statutory appropriation 2 1,590 1,500Departmental revenue 3 1,954 1,759Direct Exchequer Receipts - -NRF Receipts - -Aid assistance - -

TOTAL REVENUE 406,047 424,815EXPENDITURECurrent expenditureCompensation of employees 4 213,904 177,611Goods and services 5 93,919 95,534Interest and rent on land - -Aid assistance - -Unauthorised expenditure approved without funding - -Total current expenditure 307,823 273,145

Transfers and subsidiesTransfers and subsidies 7 22,894 15,153Aid assistance - -Unauthorised expenditure approved without funding - -Total transfers and subsidies 22,894 15,153

Expenditure for capital assetsTangible capital assets 8 49,033 129,460Software and other intangible assets 8 62 -Unauthorised expenditure approved without funding - -

Total expenditure for capital assets 49,095 129,460

Payments for financial assets 6 331 -

Direct Exchequer Payments - -

TOTAL EXPENDITURE 380,143 417,758

SURPLUS/(DEFICIT) FOR THE YEAR 25,904 7,057Reconciliation of Net Surplus/(Deficit) for the year

Voted funds 23,950 5,298Annual appropriation 23,950 5,298Conditional grants - -Unconditional grants - -Departmental revenue 14 1,954 1,759

Direct Exchequer receipts/paymentsAid assistanceSURPLUS/(DEFICIT) FOR THE YEAR 25,904 7,057


VOTE 4

STATEMENT FINANCIAL PERFORMANCE for the year ended 31 March 2011

107



VOTE 4

STATEMENT OF FINANCIAL POSITION for the year ended 31 March 2011

POSITION Note 2010/11 2009/10

R’000 R’000

ASSETS

Current assets 59,610 74,560

Unauthorised expenditure 8 41,901 24,627

Fruitless and wasteful expenditure 10 - -

Cash and cash equivalents 11 17,588 31,973

Other financial assets - -

Prepayments and advances - -

Receivables 12 121 686

Loans - -

Aid assistance receivable - -

Aid assistance receivable - -

Non-current assets

Investments - -

Loans - -

Other financial assets - -

TOTAL ASSETS 59,610 59,610 LIABILITIES

Current liabilities 74,560 57,606

Voted funds to be surrendered to the Revenue Fund 13 41,023 30,647 Departmental revenue to be surrendered to the Revenue Fund 14 58 152

Direct Exchequer Receipts to be surrendered to the Revenue Fund - -

Bank overdraft - -

Payables 13 18,529 43,761

Aid assistance repayable - -

Aid assistance unutilised - -

Non-current liabilities

Payables - -

TOTAL LIABILITIES 59,610 74,560

NET ASSETS - -

108


Note 2010/11 2009/10

R’000 R’000

Represented by:

Capitalisation reserve - -

Recoverable revenue - -

Retained funds - -

Revaluation reserves - -

-

TOTAL - -


VOTE 4

STATEMENT OF FINANCIAL POSITION for the year ended 31 March 2011

109



VOTE 4

CASH FLOW STATEMENTS for the year ended 31 March 2011

CASH FLOW Note 2010/11 2009/10

R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts

Annual appropriated funds received 1.1 402,503 330,979

Statutory appropriated funds received 2 1,590 950

Departmental revenue received 3 1,918 5,032

Direct Exchequer Receipts - -

NRF Receipts - -

Aid assistance received - -

Net (increase)/decrease in working capital (24,667) (1,622)

Surrendered to Revenue Fund (15,622) (5,884)

Surrendered to RDP Fund/Donor - -

Current payments 307,823) (273,145)

Payments for financial assets (331) -

Transfers and subsidies paid (22,894) (15,153)

Net cash flow available from operating activities 16 34,674 129,003

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for capital assets 8 (49,095) (129,452)

Proceeds from sale of capital assets 3.4 36 8

(Increase)/decrease in loans - -

(Increase)/decrease in investments - -

(Increase)/decrease in other financial assets - -

Net cash flows from investing activities (49,059) (129,452)

CASH FLOWS FROM FINANCING ACTIVITIES

Distribution/dividend received - -

Increase/(decrease) in net assets - -

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

Net cash flows from financing activities - -

Net increase/(decrease) in cash and cash equivalents (14,385) (449)

Cash and cash equivalents at beginning of period 31,973 31,973

Cash and cash equivalents at end of period 17 17,588 31,973

110


The Financial Statements have been prepared in accordance with the following poli-cies, which have been applied consistently in all material aspects, unless otherwise indicated. However, where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the Financial Statements and to comply with the statutory requirements of the Public Finance Management Act, Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the Act and the Division of Revenue Act, Act 1 of 2010.

1. Presentation of the Financial Statements

1.1 Basis of preparationThe Financial Statements have been prepared on a modified cash basis of accounting, except where stated otherwise. The modified cash basis constitutes the cash basis of accounting supplemented with additional disclosure items. Under the cash basis of accounting transactions and other events are recognised when cash is received or paid.

1.2 Presentation currencyAll amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.

1.3 RoundingUnless otherwise stated all financial figures have been rounded to the nearest one thou-sand Rand (R’000).

1.4 Comparative figuresPrior 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.

1.5 Comparative figures - Appropriation StatementA comparison between actual amounts and final appropriation per major classification of expenditure is included in the Appropriation Statement.

2. Revenue

2.1 Appropriated funds

Appropriated funds comprises of departmental allocations as well as direct charges against revenue fund (i.e. statutory appropriation).

Appropriated funds are recognised in the financial records on the date the appropriation


VOTE 4

ACCOUNTING POLICIES for the year ended 31 March 2011

becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the financial records on the date the adjustments become effective.

Unexpended appropriated funds are surrendered to the National/Provincial Revenue Fund. Any amounts owing to the National/Provincial Revenue Fund at the end of the financial year are recognised as payable in the statement of financial position.

2.2 Departmental revenueAll departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise.

Any amount owing to the National/Provincial Revenue Fund is recognised as a payable in the statement of financial position.

No accrual is made for amounts receivable from the last receipt date to the end of the reporting period. These amounts are however disclosed in the disclosure note to the annual financial statements

2.3 Direct Exchequer receiptsAll direct exchequer receipts are recognised in the statement of financial performance when the cash is received and is subsequently paid into the National/Provincial Rev-enue Fund, unless stated otherwise.

Any amount owing to the National/Provincial Revenue Funds at the end of the financial year is recognised as a payable in the statement of financial position.

2.4 Direct Exchequer paymentsAll direct exchequer payments are recognised in the statement of financial perform-ance when final authorisation for payment is effected on the system (by no later than 31 March of each year).

2.5 Aid assistanceAids assistance is recognised as revenue when received

All in-kind aid assistance is disclosed at fair value on the date of receipt in the annexures to the Annual Financial Statements.

The cash payments made during the year relating to aid assistance projects are recog-nised as expenditure in the statement of financial performance when final authorisation for payments is effected on the system (by no later than 31 March of each year).

The value of the assistance expensed prior to the receipt of funds is recognised as a re-ceivable in the statement of financial position.

111


Inappropriately expensed amounts using aid assistance and any unutilised amounts are recognised as payables in the statement of financial position.

All CARA funds received must be recorded as revenue when funds are received. The cash payments made during the year relating to CARA earmarked projects are recog-nised as expenditure in the statement of financial performance when final authorisation for payments effected on the system (by no later than 31 March of each year)

Inappropriately expensed amounts using CARA funds are recognised as payables in the statement of financial position. Any unutilised amounts are transferred to retained funds as they are not surrendered to the revenue fund.

3. Expenditure3.1 Compensation of employees3.1.1 Salaries and wages

Salaries and wages are expensed in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year).

Other employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements at its face value and are not recognised in the statement of financial performance or position.

Employee costs are capitalised to the cost of a capital project when an employee spends more than 50% of his/her time on the project. These payments form part of expenditure for capital assets in the statement of financial performance.

3.1.2 Social contributionsEmployer contributions to post employment benefit plans in respect of current employ-ees are expensed in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year).

No provision is made for retirement benefits in the financial statements of the depart-ment. Any potential liabilities are disclosed in the financial statements of the National Revenue Fund and not in the financial statements of the employer department.

Employer contributions made by the department for certain of its ex-employees (such as medical benefits) are classified as transfers to households in the statement of financial performance.

3.2 Goods and servicesPayments made during the year for goods and/or services are recognised as an expense in the statement of financial performance when the final authorisation for payment is

effected on the system (by no later than 31 March of each year).

The expense is classified as capital if the goods and/or services were acquired for a capi-tal project or if the total purchase price exceeds the capitalisation threshold (currently R5, 000). All other expenditures are classified as current.

Rental paid for the use of buildings or other fixed structures is classified as goods and services and not as rent on land.

3.3 Interest and rent on landInterest and rental payments are recognised as an expense in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). This item excludes rental for the use of buildings or other fixed structures. If it is not possible to distinguish between payment for the use of land and the fixed structures on it, the whole amount should be recorded under goods and services.

3.4 Payments for financial assetsDebts are written off when identified as irrecoverable. Debts written-off are limited to the amount of savings and/or underspending of appropriated funds. The write off oc-curs at year-end or when funds are available. No provision is made for irrecoverable amounts but an estimate is included in the disclosure notes to the financial statements amounts.

All other losses are recognised when authorisation has been granted for the recognition thereof.

3.5 Transfers and subsidiesTransfers and subsidies are recognised as an expense when the final authorisation for payment is effected on the system (by no later than 31 March of each year).

3.6 Unauthorised expenditureWhen confirmed unauthorised expenditure is recognised as an asset in the statement of financial position until such time as the expenditure is either approved by the relevant authority, recovered from the responsible person or written off as irrecoverable in the statement of financial performance.

Unauthorised expenditure approved with funding is derecognised from the statement of financial position when the unauthorised expenditure is approved and the related funds are received.

Where the amount is approved without funding it is recognised as expenditure in the statement of financial performance on the date of approval.


VOTE 4


112


Long-term employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements.

3.2 Goods and services

Payments made for goods and/or services are recognised as an expense in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year).

The expense is classified as capital if the goods and/or services were acquired for a capi-tal project or if the total purchase price exceeds the capitalisation threshold (currently R5, 000). All other expenditures are classified as current.

3.3 Interest and rent on landInterest and rental payments are recognised as an expense in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). This item excludes rental for the use of buildings or other fixed structures. If it is not possible to distinguish between payment for the use of land and the fixed structures on it, the whole amount should be recorded under goods and services.

3.4 Financial transactions in assets and liabilitiesDebts are written off when identified as irrecoverable. Debts written-off are limited to the amount of savings and/or underspending of appropriated funds. The write off oc-curs at year-end or when funds are available. No provision is made for irrecoverable amounts but an estimate is included in the disclosure notes to the financial statements amounts.

All other losses are recognised when authorisation has been granted for the recognition thereof.

3.5 Transfers and subsidies

Transfers and subsidies are recognised as an expense when the final authorisation for payment is effected on the system (by no later than 31 March of each year).

3.6 Unauthorised expenditureWhen confirmed unauthorised expenditure is recognised as an asset in the statement of financial position until such time as the expenditure is either approved by the relevant authority, recovered from the responsible person or written off as irrecoverable in the statement of financial performance.

Unauthorised expenditure approved with funding is derecognised from the statement of

financial position when the unauthorised expenditure is approved and the related funds are received.

Where the amount is approved without funding it is recognised as expenditure in the statement of financial performance on the date of approval.

3.7 Fruitless and wasteful expenditureFruitless and wasteful expenditure is recognised as expenditure in the statement of fi-nancial performance according to the nature of the payment and not as a separate line item on the face of the statement. If the expenditure is recoverable it is treated as an asset until it is recovered from the responsible person or written off as irrecoverable in the statement of financial performance.

3.8 Irregular expenditureIrregular expenditure is recognised as expenditure in the statement of financial perform-ance. If the expenditure is not condoned by the relevant authority it is treated as an asset until it is recovered or written off as irrecoverable.

4. Assets4.1 Cash and cash equivalentsCash and cash equivalents are carried in the statement of financial position at cost.

Bank overdrafts are shown separately on the face of the statement of financial position.

For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.

4.2 Other financial assetsOther financial assets are carried in the statement of financial position at cost.

4.3 Prepayments and advancesAmounts prepaid or advanced are recognised in the statement of financial position when the payments are made and are derecognised as and when the goods/services are received or the funds are utilised.

Prepayments and advances outstanding at the end of the year are carried in the state-ment of financial position at cost.

4.4 ReceivablesReceivables included in the statement of financial position arise from cash payments made that are recoverable from another party (including departmental employees) and are derecognised upon recovery or write-off.


VOTE 4


113



VOTE 4


Receivables outstanding at year-end are carried in the statement of financial position at cost plus any accrued interest. Amounts that are potentials irrecoverable are included in the disclosure notes.

4.5 InvestmentsCapitalised investments are shown at cost in the statement of financial position.

Investments are tested for an impairment loss whenever events or changes in circum-stances indicate that the investment may be impaired. Any impairment loss is included in the disclosure notes.

4.6 LoansLoans are recognised in the statement of financial position when the cash is paid to the beneficiary. Loans that are outstanding at year-end are carried in the statement of finan-cial position at cost plus accrued interest.

Amounts that are potentially irrecoverable are included in the disclosure notes.

4.7 InventoryInventories that qualify for recognition must be initially reflected at cost. Where inven-tories are acquired at no cost, or for nominal consideration, their cost shall be their fair value at the date of acquisition.

All inventory items at year-end are reflected using the weighted average cost or FIFO cost formula.

4.8 Capital assets4.8.1 Movable assetsInitial recognitionA capital asset is recorded in the asset register on receipt of the item at cost. Cost of an asset is defined as the total cost of acquisition. Where the cost cannot be determined accurately, the movable capital asset is stated at fair value. Where fair value cannot be determined, the capital asset is included in the asset register at R1.

All assets acquired prior to 1 April 2002 are included in the register at R1.

Subsequent recognitionSubsequent expenditure of a capital nature is recorded in the statement of financial performance as “expenditure for capital assets” and is capitalised in the asset register of the department on completion of the project.

Repairs and maintenance is expensed as current “goods and services” in the statement of financial performance.

4.8.2 Immovable assetsInitial recognitionA capital asset is recorded on receipt of the item at cost. Cost of an asset is defined as the total cost of acquisition. Where the cost cannot be determined accurately, the im-movable capital asset is stated at R1 unless the fair value for the asset has been reliably estimated.

Subsequent recognitionWork-in-progress of a capital nature is recorded in the statement of financial perform-ance as “expenditure for capital assets”. On completion, the total cost of the project is included in the asset register of the department that is accountable for the asset.

Repairs and maintenance is expensed as current “goods and services” in the statement of financial performance.

5. Liabilities5.1 PayablesRecognised payables mainly comprise of amounts owing to other governmental entities. These payables are carried at cost in the statement of financial position.

5.2 Contingent liabilitiesContingent liabilities are included in the disclosure notes to the financial statements when it is possible that economic benefits will flow from the department, or when an outflow of economic benefits or service potential is probable but cannot be measured reliably.

5.3 Contingent assetsContingent assets are included in the disclosure notes to the financial statements when it is probable that an inflow of economic benefits will flow to the entity.

5.4 CommitmentsCommitments are not recognised in the statement of financial position as a liability or as expenditure in the statement of financial performance but are included in the disclosure notes.

5.5 AccrualsAccruals are not recognised in the statement of financial position as a liability or as expenditure in the statement of financial performance but are included in the disclosure notes.

114


5.6 Employee benefitsShort-term employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements. These amounts are not recognised in the statement of financial performance or the state-ment of financial position.

5.7 Lease commitmentsFinance leaseFinance leases are not recognised as assets and liabilities in the statement of financial position. Finance lease payments are recognised as an expense in the statement of financial performance and are apportioned between the capital and interest portions. The finance lease liability is disclosed in the disclosure notes to the financial statements.

Operating leaseOperating lease payments are recognised as an expense in the statement of financial performance. The operating lease commitments are disclosed in the discloser notes to the financial statement.

5.8 Impairment and other provisionsThe department tests for impairment where there is an indication that a receivable, loan or investment may be impaired. An assessment of whether there is an indication of pos-sible impairment is done at each reporting date. An estimate is made for doubtful loans and receivables based on a review of all outstanding amounts at year-end. Impairments on investments are calculated as being the difference between the carrying amount and the present value of the expected future cash flows / service potential flowing from the instrument.

Provisions are disclosed 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 will be required to settle the obligation and a reliable estimate of the obligation can be made.

6. Receivables for departmental revenueReceivables for departmental revenue are disclosed in the disclosure notes to the annual financial statements.

7. Net Assets7.1 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 capitalisa-tion reserves when identified in the current period and are transferred to the National/Provincial Revenue Fund when the underlining asset is disposed and the related funds are received.

7.2 Recoverable revenueAmounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off.

8. Related party transactionsSpecific information with regards to related party transactions is included in the disclo-sure notes.

9. Key management personnelCompensation paid to key management personnel including their family members where relevant, is included in the disclosure notes.

10. Public private partnershipsA description of the PPP arrangement, the contract fees and current and capital expendi-ture relating to the PPP arrangement is included in the disclosure notes.

Specific information with regards to related party transactions is included in the disclo-sure notes.

9. Key management personnelCompensation paid to key management personnel including their family members where relevant, is included in the disclosure notes.

10. Public private partnershipsA description of the PPP arrangement, the contract fees and current and capital expendi-ture relating to the PPP arrangement is included in the disclosure notes.


VOTE 4


115


1. Annual Appropriation

1.1 Annual Appropriation

Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds) and Provincial Departments:

2010/11 2009/10

Final Appropriation

Actual Funds Received Funds not requested/ not re-

ceived

Appropriation re-ceived

R’000 R’000 R’000 R’000

Administration 116,512 116,512 - 87,482

Local Governance 132,511 132,511 - 118,536

Development And Planning 84,608 84,608 - 151,650

Traditional Institutional Management 55,256 55,256 - 63,888

The House of Traditional Leaders 13,616 13,616 - -

Total 402,503 402,503 - 421,556

2. Statutory Appropriation

2010/11 2009/10

R’000 R’000

President and Deputy President salaries

Member of executive committee/parliamentary officers 1,590 1,500

Judges and magistrates salaries - -

Sector education and training authorities (SETA) - -

National Skills Fund - -

Total 1,590 1,500

Actual Statutory Appropriation received 1,590 1,500


VOTE 4

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2011

116


3. Departmental revenue

Note 2010/11 2009/10

R’000 R’000

Tax revenue - -

Sales of goods and services other than capital assets 3.1 189 154

Fines, penalties and forfeits 3.2 - 1

Interest, dividends and rent on land 3.3 1,178 1,482

Sales of capital assets 3.4 36 8

Transactions in financial assets and liabilities 3.5 551 114

Transfer received 3.6 - -

Total revenue collected 1,954 1,759

Less: Own revenue included in appropriation 22 - -

Departmental revenue collected 1,954 1,759

3.1 Sales of goods and services other than capital assets

Note 2010/11 2009/10

R’000 R’000

Sales of goods and services produced by the department 3 189 154

Sales by market establishment 189 154

Administrative fees - -

Other sales - -

Sales of scrap, waste and other used current goods - -

Total 189 154

3.2 Fines, penalties and forfeits

Note 2010/11 2009/10

R’000 R’000

Fines 3 - 1

Penalties - -

Forfeits - -

Total - 1

117


3.3 Interest, dividends and rent on land

Note 2010/11 2009/10

R’000 R’000

Interest 3 1,178 1,482

Dividends - -

Rent on land - -

Total 1,178 1,482

3.4 Sale of capital assets

Note 2010/11 2009/10

R’000 R’000

Tangible assets 3 36 8

Buildings and other fixed structures 30 - -

Machinery and equipment 28 36 8

Specialised military assets 28 - -

Land and subsoil assets 30 - -

Investment property 30 - -

Biological assets 28 - -

Software and other intangible assetsCapitalised development costs 29 - -

Computer software 29 - -

Mastheads and publishing titles 29 - -

Patents, licences, copyright, brand names, trademarks 29 - -

Recipes, formulae, prototypes, designs, models 29 - -

Services and operating rights 29 - -

Other intangibles 29 - -

Total 36 8

118


3.5 Financial transactions in assets and liabilities

Note 2010/11 2009/10

3 R’000 R’000

Loans and advances - -

Repayment of Public Contributions - -

Receivables - -

Proceeds from investment - -

Forex gain - -

Stale cheques written back - 5

Other Receipts including Recoverable Revenue 551 109

Total 551 114

4. Compensation of employees

4.1 Salaries and Wages

Note 2010/11 2009/10

R’000 R’000

Basic salary 117,771 108,646

Performance award 6,592 4,338

Service Based 270 139

Compensative/circumstantial 1,727 1,061

Periodic payments 20,490 5,356

Other non-pensionable allowances 39,522 34,620186,372 154,160

Total 154,160 109,363

4.2 Social contributions

Note 2010/11 2009/10

R’000 R’000

Employer contributions

Pension 16,186 14,239

Medical 11,304 9,186

UIF - -

Bargaining council 42 26

Official unions and associations - -

Insurance - -

Total 27,532 23,451

Total compensation of employees 213,904 177,611

Average number of employees 1,275 1,248

119


5. Goods and services

Note 2010/11 2009/10

R’000 R’000

Administrative fees 1,163 444

Advertising 3,329 4,617

Assets less then R5,000 5.1 458 1,104

Bursaries (employees) 344 66

Catering 2,503 2,362

Communication 4,284 3,197

Computer services 5.2 159 299

Cons Consultants, contractors and agency/outsourced services 5.3 32,390 31,305

Entertainment - -

Audit cost – external 5.4 1,946 19,204

Fleet services 1,806 1,737

Inventory 5.5 2,994 3,570

Housing - -

Operating leases 4,685 2,268

Owned and leasehold property expenditure 5.6 5,928 506

Transport provided as part of the departmental activities 100 63

Travel and subsistence 5.7 21,517 16,250

Venues and facilities 7,635 7,137

Training and staff development 2,477 1,235

Other operating expenditure 5.8 201 170

Total 93,919 95,534

5.1 Assets less than R5,000

Note 2010/11 2009/10

8 R’000 R’000

Tangible assets 458 1,104

Buildings and other fixed structures - -

Biological assets - -

Machinery and equipment 458 1,104

Specialised military assets - -

Intangible assets - -

Total 458 1,104

120


5.2 Computer services

Note 2010/11 2009/10

5 R’000 R’000

SITA computer services 12 70

External computer service providers 147 229

Total 159 299

5.3 Consultants, contractors and agency/outsourced services

Note 2010/11 2009/10

5 R’000 R’000

Business and advisory services 15,934 3,595

Infrastructure and planning - 393

Laboratory services - -

Legal costs 6,976 3,491

Contractors 1,330 13,113

Agency and support/outsourced services 8,150 10,713

Total 32,390 31,305

5.4 Audit cost – External

Note 2010/11 2009/10

5 R’000 R’000

Regularity audits 1,946 3,304

Performance audits - -

Investigations - -

Environmental audits - -

Other audits - 15,900

Total 1,946 19,204

121


5.5 Inventory

Note 2010/11 2009/10

5 R’000 R’000

Medsas inventory interface - -

Learning and teaching support material 124 -

Food and food supplies 223 135

Fuel, oil and gas - -

Other consumable materials 671 375

Maintenance material 10 16

Stationery and printing 1,956 2,835

Military stores - 209

Total 2,994 3,570

5.6 Owned and leasehold property expenditure

Note 2010/11 2009/10

5 R’000 R’000

Municipal services 901 506

Property management fees - -

Property maintenance and repairs 5,027 -

Other - -

Total 5,928 506

5.7 Travel and subsistence

Note 2010/11 2009/10

5 R’000 R’000

Local 21,509 16,066

Foreign 8 184

Total 21,517 16,250

5.8 Other operating expenditure

Note 2010/11 2009/10

5 R’000 R’000

Learnerships - 15

Professional bodies, membership and subscription fees - 77

Resettlement costs 44 -

Other 157 78

Total 201 170

122


6. Payments for financial assets

Note 2010/11 2009/10

R’000 R’000

Material losses through criminal conduct - -Theft 6.4 - -Other material losses 6.1 - -Other material losses written off 6.2 - -

Debts written off 6.3 331 -

Forex losses 6.5 - -

Total 331 -

6.1 Debts written off

Note 2010/11 2009/10

6 R’000 R’000

Nature of debts written off 331 -Transfer to debts written off - -(Group major categories, but list material items) - -Total 331 -

7. Transfers and subsidies

Note 2010/11 2009/10

R’000 R’000

Provinces and municipalities Annex 1A - 10,000

Departmental agencies and accounts - -

Universities and technikons Annex 1B 114 -

Foreign governments and international organisations - -

Public corporations and private enterprises Annex 1C 15,313 -

Non-profit institutions Annex 1D 6,960 4,930

Households Annex 1E 507 223

Gifts, donations and sponsorships made - -

Total 22,894 15,153

Unspent funds transferred to the above beneficiaries

123


8. Expenditure for capital assets

Note 2010/11 2009/10

R’000 R’000

Tangible assets 49,033 129,460

Buildings and other fixed structures 29 27,406 123,282

Heritage assets 28, 29 - -

Machinery and equipment 27 21,627 6,178

Specialised military assets 29 - -

Land and subsoil assets 29 - -

Investment property 29 - -

Biological assets 28 - -

Software and other intangible assets

Capitalised development costs 28 - -

Computer software 28 62 -

Mastheads and publishing titles 28 - -

Patents, licences, copyright, brand names, trademarks 28 - -

Recipes, formulae, prototypes, designs, models 28 - -

Services and operating rights 28 - -

Other intangibles 28 - -

Total 49,095 129,460

The following amounts have been included as project costs in Expenditure for capital assets

Compensation of employees - -Goods and services - -Total - -

124


8.1 Analysis of funds utilised to acquire capital assets – 2010/11

Voted funds

Aid Assistance

Total

R’000 R’000 R’000


Buildings and other fixed structures 27,406 - 27,406

Machinery and equipment - - -

Specialised military assets 21,627 - 21,627

Land and subsoil assets - - -

Investment property - - -

Biological assets - - -

Software and other intangible assets 62 62

Capitalised development costs - - -

Computer software 62 - 62

Mastheads and publishing titles - - -

Patents, licences, copyright, brand names, trademarks - - -

Recipes, formulae, prototypes, designs, models - - -

Services and operating rights - - -

Other intangibles - - -

Total 49,095 - 49,095

125


8.2 Analysis of funds utilised to acquire capital assets – 2009/10

Voted funds

Aid Assistance

Total

R’000 R’000 R’000


Buildings and other fixed structures 123,282 - 123,282

Machinery and equipment - - -

Specialised military assets 6,178 - 6,178

Land and subsoil assets - -

Investment property - - -

Biological assets - - -

Software and other intangible assets - - -

Capitalised development costs - - -

Computer software - - -

Mastheads and publishing titles - - -

Patents, licences, copyright, brand names, trademarks - - -

Recipes, formulae, prototypes, designs, models - - -

Services and operating rights - - -

Other intangibles - - -

Total 129,460 - 129,460

126


9. Unauthorised expenditure

9.1 Reconciliation of unauthorised expenditure

Note 2010/11 2009/10

R’000 R’000

Opening balance 41,901 24,627

Unauthorised expenditure – discovered in current year 13 - 17,274

Less: Amounts approved by Parliament/Legislature with funding - -

Less: Amounts approved by Parliament/Legislature without funding and written off in the Statement of Financial Performance

- -

Capital - -

Current - -

Transfers and subsidies - -

Less: Amounts transferred to receivables for recovery - -Unauthorised expenditure awaiting authorisation / written off 41,901 41,901

Analysis of awaiting authorisation per economic classification

Capital 41,901 41,901

Current - -


Total 41,901 41,901

9.2 Reconciliation of unauthorised expenditure

Note 2010/11 2009/10

R’000 R’000

Capital 41,901 41,901

Current - -


Total 41,901 41,901

9.3 Analysis of unauthorised expenditure awaiting authorisation per type

Note 2010/11 2009/10

R’000 R’000

Unauthorised expenditure relating to overspending of the vote or a main division within a vote - 41,901

Unauthorised expenditure incurred not in accordance with the purpose of the vote or main division - -

Total 41,901

127


9.4 Details of unauthorised expenditure – current year

Incident Disciplinary steps taken/criminal pro-ceedings

2010/11 R’000

NONE - -

Total - -

10. Fruitless and wasteful expenditure

10.1

Note 2010/11 2009/10

R’000 R’000

Opening balance

Less: Amounts condoned - -

Current - -

Capital - -


Less: Amounts transferred to receivables for recovery - -

Fruitless and wasteful expenditure awaiting condonement

Analysis of awaiting authorisation per economic classification

Capital - -

Current - -


Total - -

128


11. Cash and cash equivalents

Note 2010/11 2009/10

R’000 R’000

Consolidated Paymaster General Account 17,588 31,973

Cash receipts - -

Disbursements - -

Cash on hand - -

Cash with commercial banks (Local) - -

Cash with commercial banks (Foreign) - -

Total 17,588 31,973

12. Receivables

2010/11 2009/10

R’000 R’000 R’000 R’000 R’000Note Less than one year One to three years Older than three

years

Total

Total

Claims recoverable 12.1 - - - - 4

Trade receivables - - - - -

Recoverable expenditure - - - - -

Staff debt 12.2 16 - - 16 15

Other debtors 12.3 49 20 36 105 667

Total 65 20 36 121 686

12.1 Claims recoverable

Note 2010/11 2009/1012 R’000 R’000

National departments - -

Provincial departments - -

Foreign governments - -

Public entities 10 - 4

Private enterprises - -

Universities and technikons - -

Households and non-profit institutions - -

Local governments - -

Total - 4

129


12.2 Staff debt

Note 2010/11 2009/1012 R’000 R’000

Staff Debtors 16 15

Total 16 15

12.3 Other debtors

Note 2010/11 2009/1012 R’000 R’000

Ex- employee 105 139

Suppliers - 528

Total 105 667

13. Voted funds to be surrendered to the Revenue Fund

Note 2010/11 2009/10

R’000 R’000


Transfer from statement of financial performance 23,950 5,298

Add: Unauthorised expenditure for current year 9 - 17,274

Voted funds not requested/not received 1.1 - -

Transferred to retained revenue to defray excess expenditure (PARLIAMENT/LEGISLATURES ONLY) - -

Paid during the year (13,574) (4,269)

Closing balance 41,023 30,647

14. Departmental revenue to be surrendered to the Revenue Fund

Note 2010/11 2009/10

R’000 R’000

Opening balance 152 8

Transfer from Statement of Financial Performance 1,954 1,759

Own revenue included in appropriation - -

Transfer from aid assistance - -

ransfer to voted funds to defray expenditure (Parliament/Legislatures ONLY) - -

Paid during the year (2,048) (1,615)

Closing balance 58 152

130


15. Payables – current

Note 2010/11 2009/10

Total Total

Amounts owing to other entities Annex 5 1,444 -

Advances received - -

Clearing accounts 15.1 - 1

Other payables 15.2 17,085 43,760

Total 18,529 43,761

15.1 Clearing accounts

Note 2010/11 2009/1015 R’000 R’000

Description

Sal : ACB Recall - 1

Total - 1

15.2 Other payables

Note 2010/11 2009/1015 R’000 R’000

Description

Treasury 17,085 43,760

Total 17,085 43,760

131


16. Net cash flow available from operating activities

Note 2010/11 2009/10

R’000 R’000

Net surplus/(deficit) as per Statement of Financial Performance 25,904 7,057

Add back non cash/cash movements not deemed operating activities 8,770 121,946

(Increase)/decrease in receivables – current 565 (129)

(Increase)/decrease in prepayments and advances - -

(Increase)/decrease in other current assets - -

Increase/(decrease) in payables – current (25,232) (1,493)

Proceeds from sale of capital assets (36) (8)

Proceeds from sale of investments - -

(Increase)/decrease in other financial assets - -

Expenditure on capital assets 49,095 129,460

Surrenders to Revenue Fund (15,622) (5,884)

Surrenders to RDP Fund/Donor - -

Voted funds not requested/not received - -

Own revenue included in appropriation - -

Other non-cash items - -

Net cash flow generated by operating activities 34,674 129,003

17. Reconciliation of cash and cash equivalents for cash flow purposes

Note 2010/11 2009/10

R’000 R’000

Consolidated Paymaster General account 17,588 31,973

Fund requisition account - -

Cash receipts - -

Disbursements - -

Cash on hand - -

Cash with commercial banks (Local) - -

Cash with commercial banks (Foreign) - -

Total 17,588 31,973

132


These amounts are not recognised in the Annual Financial Statements and are disclosed to enhance the usefulness of the Annual Financial Statements.

18. Contingent liabilities and contingent assets

18.1 Contingent liabilities

Note 2010/11 2009/10

R’000 R’000

Liable to Nature

Motor vehicle guarantees Employees Annex 3A - -

Housing loan guarantees Employees Annex 3A 979 1,277

Other guarantees Annex 3A - -

Claims against the department Annex 3B 55,101 12,327

Other departments (interdepartmental unconfirmed balances) Annex 5 - -

Environmental rehabilitation liability Annex 3B - -

Other Annex 3B - -

Total 56,080 13,604

19. Commitments

Note 2010/11 2009/10

R’000 R’000

Current expenditureApproved and contracted 26,785 -

Approved but not yet contracted - -

26,785

Capital expenditure

Approved and contracted 31,361 40,681

Approved but not yet contracted - -

31,361 40,681

Total Commitments 58,146 40,681


VOTE 4

DISCLOSURE NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2010

133


20. Accruals

2010/11 2009/10

R’000 R’000

Listed by economic classification

30 Days 30+ Days Total Total

Goods and services 1,988 566 2,554 7,343

Interest and rent on land - - - -

Transfers and subsidies - - - -

Capital assets - - - -

Other - - - -

Total 1,988 566 2,554 7,343

Note 2010/11 2009/10

R’000 R’000

Listed by programme level

Administration 1,258 3,882

Local Governance 1,080 967

Development and Planning 114 1,729

Traditional Institutional Management 10 765

The House of Traditional Leaders 92

Total 2,554 7,343

Note 2010/11 2009/10

R’000 R’000

Confirmed balances with other departments Annex 5 - -

Confirmed balances with other government entities Annex 5 1,444 -

Total 1,444 -

134


21. Employee benefits

Note 2010/11 2009/10

R’000 R’000

Leave entitlement 12,307 11,077

Service bonus (Thirteenth cheque) 5,429 5,037

Performance awards 6,592 2,784

Capped leave commitments 9,634 8,960

Other - -

Total 33,962 27,858


VOTE 4

DISCLOSURE NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2010

22. Lease commitments

22.1 Operating leases expenditure

2010/11

Specialised mili-tary equipmen

Land

Buildings and other fixed structures

Machinery and equipment

Total

Not later than 1 year - - 289 586 875

Later than 1 year and not later than 5 years - - 158 169 327

Later than 5 years - - - - -

Total lease commitments - - 447 755 1,202

2009/10

Land


Machinery and equipment

2008/09

Not later than 1 year - - 350 143 493

Later than 1 year and not later than 5 years - - 1,774 1,119 2,893

Later than five years - - - - -

Total lease commitments - - 2,124 1,262 3,386

135


23. Receivables for departmental revenue

Note 2010/11 2009/10

R’000 R’000

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 14 -

Transactions in financial assets and liabilities - -Transfers received (incl. conditional grants to be repaid by provincial departments) - -Other - -Total 14 -

23.1 Analysis of receivables for departmental revenue

Note 2010/11 2009/10

R’000 R’000

Opening balance - -Less: amounts received - -Add: amounts recognised 14 -Less: amounts written-off/reversed as irrecoverable - -Closing balance 14 -

136


24. Irregular expenditure

24.1 Reconciliation of irregular expenditure

Note 2010/11 2009/10

R’000 R’000


Add: Irregular expenditure – relating to prior year - -

Add: Irregular expenditure – relating to current year 6,963 3,751

Less: Amounts condoned (3,751) -

Less: Amounts recoverable (not condoned) - -

Less: Amounts not recoverable (not condoned) - -

Irregular expenditure awaiting condonation 9,116 5,904

Analysis of awaiting condonation per age classification

Current year 6,963 3,751

Prior years 2,153 2,153

Total 9,116 5,904

24.2 Details of irregular expenditurecurrent year

Incident Disciplinary steps taken/Criminal proceeding 2010/11

R’000

Overspending on compensation of employees None 6,127

Irregular procurement Disciplinary process concluded and responsible official demoted to lower rank

0,836

Total 6,963

The nature and circumstances under which the irregular procurement as disclosed above occurred, suggest that the department could have suffered more irregular expenditure of which cannot be quantified except for what has been confirmed by investigation and disciplinary hearing

The department wish to indicate that there are other matters of irregular procurement that should receive further investigation against the same official. The department cannot pursue these inves-tigations as the official has already been through disciplinary process, found guilty and sanction handed. It is also the view of the department that it will be uneconomical to continue with these investigations.

137


24.3 Details of irregular expenditures under investigation

Incident 2010/11

R’000

-

Total -

24.4 Details of irregular expenditure not recoverable (not condoned)

Incident 2010/11

R’000

NONE -

Total -

25. Related Party Transaction

During the year the department received service from the Department of Public Works Roads and Transport that are related to the Department. The Department of Co-operative Govern-ance and Traditional Affairs occupies Government Building in the Province provided by the Department of Public Works Roads and Transport free of charge.

26. Key management personnel

No. of 2010/11 2009/10

individuals R’000 R’000

Political office bearers (provide detail below) 1 1,544 1,418

Officials:

Level 15 to 16 1 1,275 643

Level 14 (incl. CFO if at a lower level) 5 4,728 3,105

Family members of key management personnel

Total 7,547 5,166

138


Impairment and other provisions

Note 2010/11 2009/10

R’000 R’000

Impairment

Investments - -

Loans - -

Debtors 69 331

Other - -

Total 69 331

Other provisions

Performance Bonus 3,117 3,115

Total 3,117 3,115

Total 3,186 3,446

139


27. Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2010

Opening balance Curr Year Adjust-ments to prior year balances

Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000

HERITAGE ASSETS - - - - -

Heritage assets - - - - -

MACHINERY AND EQUIPMENT 27,845 (721) 22,765 (23,697) 26,192

Transport assets 14,764 (721) 19,894 (19,525) 14,412

Computer equipment 5,430 612 1,292 (2,091) 5,243

Furniture and office equipment 1,570 1,434 1,305 (1,049) 3,260

Other machinery and equipment 6,081 (2,046) 274 (1,032) 3,277

SPECIALISED MILITARY ASSETS - - - - -

Specialised military assets - - - - -

BIOLOGICAL ASSETS - - - - -

Biological assets - - - - -

- - - - -

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 27,845 (721) 22,765 (23,697) 26,192

27.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011

Cash Non-cash (Capital Work in Progress current costs and finance lease payments

Received current, not paid (Paid cur-rent year, received prior year)

Total

R’000 R’000 R’000 R’000 R’000



MACHINERY AND EQUIPMENT 21,866 899 - - 22,765

Transport assets 19,894 - - - 19,894

Specialised military assets 965 327 - - 1,242

Computer equipment 733 572 - - 1,305

Furniture and office equipment 274 - - - 274

Other machinery and equipment 3,788 - - - 3,788

SPECIALISED MILITARY ASSETS - - - - -

Specialised military assets - - - - -

BIOLOGICAL ASSETS - - - - -

Biological assets - - - - -

TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 21,866 899 - - 22,765

140


27.3 Movement for 2009/10

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2010

Opening balance

Additions Disposals Closing balance

R’000 R’000 R’000 R’000

HERITAGE ASSETS - - - -

Transport assets - - - -

MACHINERY AND EQUIPMENT 24,897 6,696 (3,748) 27,845

Transport assets 14,564 1,147 (947) 14,764

Computer equipment 4,092 1,338 - 5,430

Furniture and office equipment 1,147 423 - 1,570

Other machinery and equipment 5,094 3,788 (2,801) 6,081

SPECIALISED MILITARY ASSETS - - - -Specialised military assets - - - -

BIOLOGICAL ASSETS - - - -


TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS 24,897 6,696 (3,748) 27,845

27.2 Disposals

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011

Sold for cash Transfer out or de-stroyed or scrapped

Total disposals Cash Received Actual

R’000 R’000 R’000 R’000



MACHINERY AND EQUIPMENT 23,697 23,697 -

Transport assets - 19,525 19,525 -

Computer equipment - 2,091 2,091 -

Furniture and office equipment - 1,049 1,049 -

Other machinery and equipment - 1,032 1,032 -

SPECIALISED MILITARY ASSETS - - - -

Specialised military assets - - - -

BIOLOGICAL ASSETS - - - -


TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS - 23,697 23,697 -

141


27.4 Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE DEPARTMENT FOR THE YEAR ENDED 31 MARCH 2011

Specialised military assets

Intangible assets Heritage assets Machinery and equipment

Biological assets Total

R’000 R’000 R’000 R’000 R’000

Opening Balance - - - 11,575 - 11,575

Curr Year Adjustments to Prior Yr - - - -

Balance - - - (274) - (274)

Additions - - - 842 - 842

Disposal - - - 5,080 - 5,080TOTAL MINOR ASSETS - - - 7,063 - 7,063




Number of R1 minor assets - - - - - -

Number of minor assets at cost - - - 6,449 - 6,449

TOTAL NUMBER OF MINOR ASSETS - - - 6,449 - 6,449

MINOR ASSETS OF THE DEPARTMENT AS AT 31 MARCH 2010




R’000 R’000 R’000 R’000 R’000 R’000Minor assets - - - 11,575 - 11,575

TOTAL - - - 11,575 - 11,575

142


28. Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011

Opening balance Current Year Adjust-ments to prior year

balances


R’000 R’000 R’000 R’000 R’000

Capitalised Development Costs - - - - -

Computer Software 698 - 62 - 760

Mastheads And Publishing Titles - - - - -

Patents, Licences, Copyright, Brand Names, Trademarks - - - - -

Recipes, Formulae, Prototypes, Designs, Models - - - - -

Services And Operating Rights - - - - -

Other Intangibles - - - - -

Total Intangible Capital Assets 698 - 62 - 760

28.1 Additions

ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011

Cash Non-Cash (Develop-ment work in progress – current

costs)

Received current year, not paid

Closing balance

R’000 R’000 R’000 R’000 R’000

Capitalised Development Costs - - - - -

Computer Software 62 - - - 62

Mastheads And Publishing Titles - - - - -

Patents, Licences, Copyright, Brand Names, Trademarks - - - - -

Recipes, Formulae, Prototypes, Designs, Models - - - - -

Services And Operating Rights - - - - -

Other Intangibles - - - - -

Total Intangible Capital Assets 62 - - - 62

143


28.2 Disposals

DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011



R’000 R’000 R’000 R’000

Capitalised Development Costs - - - -

Computer Software - - - -

Mastheads And Publishing Titles - - - -Patents, Licences, Copyright, Brand Names, Trademarks - - - -Recipes, Formulae, Prototypes, Designs, Models - - - -

Services And Operating Rights - - - -Other Intangibles - - - -

Total Disposals Of Intangible Capital Assets - - - -

28.3 Movement for 2008/09

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2010

Opening balance Additions Disposals Closing balance

R’000 R’000 R’000 R’000

Capitalised Development Costs - - - -

Computer Software 698 - - 698

Mastheads And Publishing Titles

Patents, Licences, Copyright, Brand Names, Trademarks - - - -

Recipes, Formulae, Prototypes, Designs, Models - - - -

Services And Operating Rights - - - -

Other Intangibles

Total Intangible Capital Assets 698 - - 698

144


29. Immovable Tangible Capital Assets

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011

Opening balance Current Year Adjustments to prior year balances


R’000 R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES - - - -

Dwellings - - - - -

Non-residential buildings - - - - -

Other fixed structures - - - - -



LAND AND SUBSOIL ASSETS - - - -

Land - - - - -

Mineral and similar non-regenerative resources - - - - -

INVESTMENT PROPERTY - - - - -

Investment property - - - - -

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS - - - - -

145


29.1 Additions

ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011

Cash Non-cash (Capital Work in Progress current costs and finance

lease payments)

Received current, not paid (Paid current year,

received prior year)

Closing Balance

R’000 R’000 R’000 R’000 R’000

BUILDING AND OTHER FIXED STRUCTURES 27,406 - (27,406) - -

Dwellings - - - - -

Non-residential buildings - - - - -

Other fixed structures 27,406 - (27,406) - -



LAND AND SUBSOIL ASSETS - - - - -

Land - - - - -

Mineral and similar non-regenerative resources - - - - -

INVESTMENT PROPERTY - - - - -

Investment property - - - - -

TOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS 27,406 - (27,406) - -

146


29.2 Dsposals

DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011



R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES - - - -

Dwellings - - - -

Non-residential buildings - - - -

Other fixed structures - - - -



LAND AND SUBSOIL ASSETS - - -

Land - - - -

Mineral and similar non-regenerative resources - - - -

INVESTMENT PROPERTY - - - -

Investment property - - - -

TOTAL DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS - - - -

147


29.3 MOVEMENT FOR 2009/10

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2010

Opening balance Additions Disposals Closing balance

R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES 7,448 - (7,448) -Dwellings 47 - (47)

- - -Non-residential buildings - - - -Other fixed structures 7,401 - (7,401) -

HERITAGE ASSETS - - - -Heritage assets - - - -

LAND AND SUBSOIL ASSETS 280 - (280) -Land 280 - (280) -

Mineral and similar non-regenerative resources - - - -

INVESTMENT PROPERTY - - - -Investment property - - - -

TOTAL IMMOVABLE TANGIBLE ASSETS 7,728 - (7,728) -

29.4 Immovable Assets valued at R1

IMMOVABLE ASSETS VALUED AT R1 IN THE ASSET REGISTER AS AT 31 MARCH 2011


Heritage assets Land and subsoil assets

Investment prop-erty

Total

R’000 R’000 R’000 R’000 R’000

R1 Immovable assets - - - - -TOTAL - - - - -

IMMOVABLE ASSETS VALUED AT R1 IN THE ASSET REGISTER AS AT 31 MARCH 2010


Heritage assets Land and subsoil assets

Investment prop-erty

Total

R’000 R’000 R’000 R’000 R’000

R1 Immovable assets - - - - -TOTAL - - - - -

148



VOTE 4

ANNEXURES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2011

ANNEXURE 1A

ANNEXURE 1A

STATEMENT OF UNCONDITIONAL GRANTS AND TRANSFERS TO MUNICIPALITIES

NAME OF MUNICIPALITY GRANT ALLOCATION TRANSFER SPENT 2009/10

Amount Roll Overs

Adjustments Total Available

Actual Transfer

% of Available

funds Transferred

Amount received by

municipality

Amount spent by

municipality

% of available funds spent by

municipality

Total Available

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

GERT SIBANDE DISTRICT MUNICIPALITY

- - - - - - - - - 10,000

- - - - - - - - - 10,000

149



VOTE 4


ANNEXURE 1B

ANNEXURE 1B

STATEMENT OF TRANSFERS TO UNIVERSITIES AND TECHNIKONS

UNIVERSITY/TECHNIKON TRANSFER ALLOCATION TRANSFER 2009/10

Adjusted

Appropriation

Roll

Overs

Adjust-ments

Total

Available

Actual Transfer

Amount not transferred

% of

Available funds

Transferred

Appro-priation

Act

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

Bursaries 115 - - 115 114 1 1% -

TOTAL 115 - - 115 114 1 1% -

150


ANNEXURE 1C

STATEMENT OF TRANSFERS/SUBSIDIES TO PUBLIC CORPORATIONS AND PRIVATE ENTERPRISES

NAME OF PUBLIC

CORPORATION/PRIVATE ENTER-PRISE

TRANSFER ALLOCATION EXPENDITURE 2009/10

Adjusted

Approp-riation

Act

Roll Overs


Actual Transfer

% of Available funds

Transferred

Capital Current Appropriation Act

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

Public Corporations

Transfers

Rand Water Board 24,941 - - 24,941 15,313 61% - - -

Total 24,941 - - 24,941 15,313 61% - - -

Private Enterprises

Transfers - - - - - - - - -

TOTAL 24,941 - - 24,941 15,313 61% - - -


VOTE 4


151



VOTE 4


ANNEXURE 1D

STATEMENT OF TRANSFERS TO NON-PROFIT INSTITUTIONS

NON-PROFIT INSTITUTIONS TRANSFER ALLOCATION EXPENDITURE 2009/10

Adjusted

Approp-riation

Act

Roll Overs


Actual Transfer


Transferred

Appropriation Act

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

Transfers

Traditional Institutional Management 7,009 - - 7,009 6,960 99% 5,900

7,009 - - 7,009 6,960 99% 5,900

Subsidies - - - - - - -

TOTAL 7,009 - - 7,009 6,960 99% 5,900

152



VOTE 4


ANNEXURE 1E

STATEMENT OF TRANSFERS TO HOUSEHOLDS

HOUSEHOLDS TRANSFER ALLOCATION EXPENDITURE 2009/10

Adjusted

Appropriation

Act

Roll Overs


Actual Transfer


Transferred

Appropriation Act

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

Transfers

Leave Gratuity 515 - - 515 507 98% 500

Subsidies

Total 515 - - 515 507 98% 500

ANNEXURE 1K

STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE AND REMMISSIONS, REFUNDS AND PAYMENTS MADE AS AN ACT OF GRACE

NATURE OF GIFT, DONATION OR SPONSORSHIP

(Group major categories but list material items including name of organisation

2010/11 EXPENDITURE

R'000 R'000

Made in kind

Motor Vehicle for Amakhosi 12,176 -

Subtotal 12,176 -

Remissions, refunds, and payments made as an act of grace

Subtotal

TOTAL 12,176 -

153



VOTE 4


ANNEXURE 3A

STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2011 – LOCAL

Guarantor

institution

Guarantee in

respect of

Original

guaranteed

capital

amount

Opening bal-ance

1 April 2010

Guarantees

draw downs

during the

year

Guarantees

repayments/ cancelled/

reduced/ re-leased during

the year

Revaluations Closing balance

31 March 2011

Guaranteed interest for year ended 31 March

2011

Realised

losses not recoverable i.e. claims paid out

R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000

Housing

Standard Bank

Nedbank Ltd

First Rand Bank

Absa

Peoples Bank

Nedbank Ltd NBS

Old Mutual

Mpumalanga housing finance

236

61

185

196

66

110

220

203

(76)

-

(109)

(62)

-

-

-

(51

160

61

76

134

66

110

220

152

Subtotal - 1,277 (298) 979 - -

Other - - - - -

Subtotal

Total 1,277 (298) 979 - -

154



VOTE 4


ANNEXURE 3B

STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2011

Nature of liabilities Opening bal-ance 1 April

2010

Liabilities incurred

during the year

Liabilities paid/cancelled/re-duced during

the year

Liabilities recov-erable (Provide details hereun-

der)

Closing balance 31 March 2011

R’000 R’000 R’000 R’000 R’000

Claims against the department

WA Boshof vs Local Transitional Council of Delmas and MEC 2,150 - (2,150) - -

Mdokis Toilet and Tent Hire vs The department of Local Governance

GNS Advisory Services/ Abalozi Advisory Services

Zothwe Consulting Engineers

KZN Department of Sport and Culture

Stesashan Sphephelo vs MEC and HOD

MK Associates vs The Department

Jozzis Partanos Electronics vs Bushbuckridge Local Municipality

14

5,626

2,889

1,648

-

-

-

-

-

-

-

24,708

2,591

26,154

(14)

(5,626)

(2,889)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1,648

24,708

2,591

26,154

Subtotal 12,327 53,453 (10,679) - 55,101

TOTAL 12,327 53,453 (10,679) - 55,101

155



VOTE 4


Government Entity Confirmed balance outstanding Unconfirmed balance outstanding Total

31/03/2011 31/03/2010 31/03/2011 31/03/2010 31/03/2011 31/03/2010

R’000 R’000 R’000 R’000 R’000 R’000

Department

Office of the Premier - - 43 - 43 -

Other Government Entities - - - - - -

TOTAL - - 43 - 43 -

ANNEXURE 4

CLAIMES RECOVERABLE

156


Government Entity Confirmed balance outstanding Unconfirmed balance outstanding Total

31/03/2011 31/03/2010 31/03/2011 31/03/2010 31/03/2011 31/03/2010

R’000 R’000 R’000 R’000 R’000 R’000

Department

Current

Subtotal - - - - - -

Non-current


Total - - - - - -

Other Government Entities

Current

SARS 1,444 - - - 1,444 -

Subtotal 1,444 - - - 1,444 -

Non-current


TOTAL 1,444 - - - 1,444 -

ANNEXURE 5

INTER-GOVERNMENT PAYABLES


VOTE 4


157


ANNEXURE 6

INVENTORY

Inventory Note Quantity 2010/11 Quantity 2009/10R’000 R’000

Opening balance 21,894 918 55,288 566Add/(Less): Adjustments to prior year balance 227 3 - -

Add: Additions/Purchases – Cash 102,207 5,817 5,440 2,253

Add: Additions - Non-cash 12,278 922 9,592 638

(Less): Disposals 37 2 - -

(Less): Issues (104,302) (5,840) (42,309) (2,265)

Add/(Less): Adjustments (19,588) (1,116) (6,117) (274)

Closing balance 12,753 706 21,894 918


PART 6HUMAN RESOURCE

MANAGEMENT

PART 6HUMAN RESOURCE

MANAGEMENT

159


Table 1.1 Main services delivered and standards

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

Local governance • Local Municipalities

• District Municipalities

• Sector Departments

• SALGA

• NGO’s and CBO’s • 21 municipalities supported to comply with legislation

• Improve access to key government serv-ices through Thusong Service Centres, Mo-bile Units and e-governance

• 21 municipalities supported to comply with legislation requirements

• 18 Thusong Service Centres established

Development and Planning • Local Municipalities



• SALGA

• NGO’s and CBO’s • Integrated development planning aligned to the PGDS and NSDP in the province and all 21 municipal areas

• 18 Municipalities with registered projects on MIS and commitments of MIG spending

• 21 Municipalities aligned to PGDS and NSDP in the province

Traditional Institution Man-agement

• Traditional councils

• Communities

• Private Sector • 59 Traditional Councils capacitated with relevant administrative prescripts

• 38 Traditional Council capacitated and moni-tored on administrative prescripts impacting on traditional leadership

House of traditional leaders • Traditional councils

• Communities

• Private Sector • Provide strategic political leadership to house of traditional leaders

• Political and administrative well managed house of traditional leaders

OVERSIGHT REPORT

HR OVERSIGHT - APRIL 2010 to MARCH 2011

160


Table 1.2 Consultation arrangements with customers

Type of arrangement Actual Customers Potential Customers Actual achievements

Public hearings • Communities • Private Sector (Business) • To gather information and community needs

Meetings (Seminars) • Local Municipalities



• Traditional Leaders

• SALGA

• NGO’s and CBO’s • Information sharing

Table 1.3 service delivery access strategy

Access Strategy Actual achievements

• Institutionalization of Batho Pele • Approved Departmental service standards and service delivery charter

• Mobile Units • Formation of District sub-committees for mobile units

• CDW’s • Dissemination of information

• Public Participation • Izimbizo’s

• Community outreach programmes

• Thusong Service Centres • Bringing services and information closer to the communities

Table 1.4 Service information tool

Types of information tool Actual achievements

Media (Print and electronic) • Departmental Newsletters

• Magazines

• Pamphlets

• Radio slots

• Website

161


Table 1.5 - Complaints mechanism

Complaints Mechanism Actual achievements

Written complaints • Suggestion box

• Departmental post box

Verbal complaints • Telephonically

• Public hearings

2 - Expenditure

TABLE 2.1 - Personnel costs by Programme 2010/2011

Programme Total Voted Expenditure (R’000)

Compensation of Employees Expendi-ture (R’000)

Training Expenditure (R’000)

Professional and Special Services (R’000)

Compensation of Employees as percent of Total Expenditure

Average Compensa-tion of Employees Cost per Employee (R’000)

Employment

Administration 118,102 38,168 402 817 48% 267 143

Local Governance 132,511 88,099 401 5,061 75% 187 470

Development & Planning 84,608 12,953 225 11,493 8% 235 55

Traditional Institution Management 55,256 38,389 207 - 73% 66 580

The House of Traditional Leaders 13,616 7,449 55% 310 24

Z=Total as on Financial Systems (BAS) 404,093 214,105 2,476 24,346 53% 168 1,273

162


TABLE 2.2 - Personnel costs by Salary band 2010/2011

Salary Bands Compensation of Employees Cost (R’000)

Percentage of Total Per-sonnel Cost for Depart-ment

Average Compensation Cost per Employee (R’000)

Total Personnel Cost for Department including Goods and Transfers (R’000)

Number of Employ-ees

Lower skilled (Levels 1-2) 1 44 22 53

Skilled (Levels 3-5) 90 10,545 5,318 10,635

Highly skilled production (Levels 6-8) 508 92,705 46,606 93,635

Highly skilled supervision (Levels 9-12) 153 55,724 27,938 61,449

Senior management (Levels 13-16) 23 17,791 8,907 20,526

Contract (Levels 6-8) 0 0 0 0

Contract (Levels 9-12) 0 0 0 0

Periodic Remuneration 6 20,487 10,246 20,699

Abnormal Appointments 494 16,194 8,344 38,374

TOTAL 1,275 213,489 107,382 245,370

TABLE 2.3- Salaries, Overtime, Home Owners Allowance and Medical Aid by Programme 2010/2011

Programme Salaries (R’000)

Salaries as % of Personnel Cost

Overtime (R’000)

Overtime as % of Person-nel Cost

HOA (R’000)

HOA as % of Person-nel Cost

Medical Ass. (R’000)

Medical Ass. as % of Personnel Cost

Administration 44,121 21% 122 0% 1,373 1% 2,057 0%

Local Governance 112,072 52% 0 3,711 2% 7,163 0%

Development & Planning 14,093 7% 128 0% 430 0% 646 0%

Traditional Institution & Management 35,560 17% 0 841 0% 1,250 0%

The House of Traditional Leaders 7,449 3% 0 1,292 1% 187 0%

TOTAL 214,105 100 250 0% 7,647 4% 11,303 0%

163


TABLE 2.4 - Salaries, Overtime, Home Owners Allowance and Medical Aid by Salary Band 2010/2011

Salary bands Number of Em-ployees

Salaries (R’000)

Salaries as % of Personnel Cost

Overtime (R’000)

Overtime as % of Personnel Cost

HOA (R’000) HOA as % of Personnel Cost

Medical Ass. (R’000)

Medical Ass. as % of Personnel Cost

Lower skilled (Levels 1-2) 1 29 0% 0 0% 4 0% 0 0%

Skilled (Levels 3-5) 90 7,131 3% 19 0% 693 0% 918 0%

Highly skilled production (Levels 6-8)

508 64,186 26% 138 0% 3,977 2% 785 1%

Highly skilled supervision (Levels 9-12)

153 39,010 16% 93 0% 125,456 51% 3,610 0%

Senior management (Lev-els 13-16)

23 10,400 4% 0 0% 471 0% 347 0%

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

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

Contractor (Level 13-16) 0 0% 0 0% 0 0% 0 0%

Periodic Appointments 6 20,487 8% 0 0% 0 0% 0 0%

Abnormal Appointments 494 15,950 7% 0 0% 0 0% 0 0%

TOTAL 1,275 157,193 64% 2500 0% 130,601 53% 5,661 2%

164


TABLE 3.1 – Employment and vacancies by programme, 31 March 2011

Programme Number of posts Number of posts filled Vacancy Rate % Number of posts filled additional to the estab-lishment

Office of the MEC 7 7 0 0

Development and planning, Permanent 69 44 36.2 0

Local governance, Permanent 590 476 19.3 0

Traditional leadership and institutions, Permanent 156 123 21.2 0

Administration, Permanent 210 147 30 0

Traditional Leaders Abnormal 487 487 0 487

TOTAL 1519 1284 15.47 487

3 – Employment and Vacancies

TABLE 3.2 – Employment and vacancies by salary bands, 31 March 2011

Salary band Number of posts Number of posts filled Vacancy Rate % Number of posts filled additional to the estab-lishment

Lower skilled (Levels 1-2) 94 1 98.9 0

Skilled (Levels 3-5) 97 93 4.1 1

Highly skilled production (Levels 6-8) 612 519 15.2 12

Highly skilled supervision (Levels 9-12) 201 159 20.9 1

Senior management (Levels 13-16) 26 23 11.5 0

Traditional leaders, Abnormal 487 487 0 487

Contract ( Level 6-8), Permanent 0 0 0 0

Contract ( Level 9 - 12), Permanent 1 1 0 2

Contract ( Level 13 - 16), Permanent 1 1 0 9

Total 1519 1284 15.47 512

165


TABLE 3.3 – Employment and vacancies by critical occupation, 31 March 2011

Critical occupations Number of posts Number of posts filled Vacancy Rate Number of posts filled addi-tional to the establishment

Administrative related, Permanent 133 107 19.5 9

Cleaners in offices workshops hospitals etc., Permanent 20 15 25 0

Communication and information related, Permanent 16 7 56.3 0

Finance and economics related, Permanent 2 1 50 0

Financial and related professionals, Permanent 25 21 16 0

Financial clerks and credit controllers, Permanent 1 1 0 0

General legal administration & rel. professionals, Permanent 5 2 60 0

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

Human resources clerks, Permanent 16 10 37.5 0

Human resources related, Permanent 17 10 41.2 0

Information technology related, Permanent 23 21 8.7 0

Legal related, Permanent 1 1 0 0

Library mail and related clerks, Permanent 6 5 16.7 0

Messengers porters and deliverers, Permanent 7 4 42.9 0

Other administrative & related clerks and organisers, Permanent 496 467 5.8 0

Other administrative policy and related officers, Permanent 127 66 48 1

Other occupations, Permanent 58 12 79.3 0

Secretaries & other keyboard operating clerks 4 2 50 0

Risk management and security services, Permanent 49 22 55.1 0

Senior Managers, Permanent 25 22 12 0

Traditional Leaders Abnormal 487 487 0 487

Total 1519 1284 15.5 497

166


TABLE 4.1 – Job Evaluation, 1 April 2010 to 31 March 2011

Salary Band No of posts

No of jobs evaluated

No Posts evaluated by salary bands

Posts Upgraded Posts downgraded

Number % of posts evaluated Number % of posts evaluated

Lower skilled (Levels 1-2) 98 0 0 0 0 0 0

Skilled (Levels 3-5) 99 0 0 0 0 0 0

Highly skilled production (Levels 6-8) 604 0 0 0 0 0 0

Highly skilled supervision (Levels 9-12) 200 0 0 0 0 0 0

Senior Management Service Band A 20 0 0 0 0 0 0

Senior Management Service Band B 5 0 0 0 0 0 0

Senior Management Service Band C 1 0 0 0 0 0 0

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

Traditional leaders, abnormal 487 0 0 487

Contract (Levels 3-5) 1 0 0 0 0 0 0

Contract (Levels 9-12) 1 0 0 0 0 0 0

Contract (Band A) 1 0 0 0 0 0 0

Total 1519 0 0 0 0 0 0

4 – Job Evaluation

TABLE 4.2 – Profile of employees whose salary positions were upgraded due to their posts being upgraded, 1 April 2010 to 31 March 2011

Beneficiaries African Asian Colored White Total

Female 0 0 0 0 0

Male 0 0 0 0 0

Total 0 0 0 0 0

Employees with a disability 14

TABLE 4.3 – Employees whose salary level exceeds the grade determined by job evaluation, 1 April 2010 to 31 March 2011

(in terms of PSR 1.V.C.3)

Total Number of Employees whose salaries exceeded the grades determined by job evaluation in 20010/11 0

167


TABLE 4.4 – Profile of employees whose salary level exceed the grade determined by job evaluation, 1 April 2010 to 31 March 2011

(in terms of PSR 1.V.C.3)

Beneficiaries African Asian Coloured White Total

Female 0 0 0 0 0

Male 0 0 0 0 0

Total 0 0 0 0 0

Employees with a disability 0

TABLE 5.1 – Annual turnover rates by salary band for the period 1 April 2010 to 31 March 2011

Salary Band Number of employees per band as on 1 April 2010

Appointments and transfers into the department

Terminations and transfers out of the department

Turnover rate

Lower skilled (Levels 1-2) 1 0 1 0

Skilled (Levels 3-5) 91 0 5 5.4

Highly skilled production (Levels 6-8) 520 13 11 1.87

Highly skilled supervision (Levels 9-12) 144 12 3 1.80

Senior Management Service Band A 15 1 1 5.55

Senior Management Service Band B 3 0 0 0

Senior Management Service Band C 1 0

Senior Management Service Band D 1 0 0 0

Contract (Levels 6 – 8), Permanent 0 0 0 0

Contract (Levels 9 – 12), Permanent 0 1 1 100

Contract (Band A), Permanent 1 0 1 100

Traditional Leaders 487 0 9 1.84

Total 1264 20 31 2.4

5 - Employment Changes

168


TABLE 5.2 – Annual turnover rates by critical occupation for the period 1 April 2010 to 31 March 2011

Occupation: Number of employees per occupation as on 1 April 2010

Appointments and transfers into the department

Terminations and transfers out of the department

Turnover rate %

Administrative related, Permanent 108 10 11 9.32

Cleaners in offices workshops hospitals etc., Permanent 13 1 1 7.14

Client inform clerks 3 0 0 0

Communication and information related, Permanent 2 3 0 0

Finance and economics related, Permanent 3 0 0 0

Financial and related professionals, Permanent 6 0 0 0

Financial clerks and credit controllers, Permanent 9 0 0 0

General legal administration & rel. professionals, Permanent 1 0 0 0

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

Human resources clerks, Permanent 5 0 0 0

Human resources related, Permanent 3 0 0 0

Human resource related, Permanent 3 0 0 0

Information technology related, Permanent 19 0 0 0

Legal related, Permanent 1 0 0 0

Library mail and related clerks, Permanent 7 0 0 0

Messengers porters and deliverers, Permanent 3 0 0 0

Other administrative & related clerks and organisers, Permanent 278 0 3 1.07

Other administrative policy and related officers, Permanent 36 0 6 16.6

Other occupations, Permanent 241 0 0 0

Secretaries & other keyboard operating clerks, Permanent 13 5 0 0

Traditional leaders 487 9 1.84

Senior managers, Permanent 22 1 1 4.34

Total 1264 20 30 2.4

169


Table 5.3 – Reasons why staff are leaving the department

Termination Type Number % of total

Death 6 25

Resignation 4 16.6

Expiry of contract 1 4.16

Dismissal – operational changes 0 -

Dismissal – misconduct 0 -

Dismissal – inefficiency 0 -

Discharged due to ill-health 0 -

Termination 9 37.5

Retirement 4 16.6

Total 24

Total number of employees who left as a % of the total employment 1.86

170


Table 5.4 – Promotions by critical occupation

Occupation: Employees as at 1 April 2010

Promotions to another salary level

Salary level pro-motions as a % of employees by oc-cupation

Progressions to an-other notch within a salary level

Notch progressions as a % of employ-ees by occupation

Administrative related 108 10 9.3 72 66.7

Cleaners in offices workshops hospitals etc. 13 1 7.7 11 84.6

Client inform clerks (switchboard) (reception inform clerks) 3 0 0 2 66.7

Communication and information related 2 3 150 0 0

Finance and economics related 3 0 0 2 66.7

Financial and related professionals 6 1 16.7 6 100

Financial clerks and credit controllers 9 0 0 6 66.7

General legal administration & rel. professionals 1 1 100 0 0

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

Human resources clerks 5 0 0 4 80

Human resources related 3 0 0 2 66.7

Human resource related 3 0 0 2 66.7

Information technology related 19 0 0 17 89.5

Legal related 1 0 0 0 0

Library mail and related clerks 7 0 0 4 57.1

Messengers porters and deliverers 3 0 0 2 66.7

Other administrative & related clerks and organisers 1 0 0 1 100

Other administrative policy and related officers 277 0 0 200 72.2

Other occupations 241 0 0 209 86.7

Secretaries & other keyboard operating clerks 13 4 30.8 10 76.9

Senior managers 21 1 4.8 3 14.3

Traditional leaders, Abnormal 487 0 0 0 0

Total 1263 21 1.7 577 45.7

171


Table 5.5 – Promotions by salary band

Salary Band Employees 1 April 2010

Promotions to an-other salary level

Salary bands promotions as a % of employees by salary level

Progressions to another notch within a salary level

Notch progressions as a % of employees by salary band

Lower skilled (Levels 1-2) 1 0 0 17 1700

Skilled (Levels 3-5) 91 0 0 373 409.9

Highly skilled production (Levels 6-8) 515 4 0.8 125 24.3

Highly skilled supervision (Levels 9-12) 147 7 4.8 56 38.1

Senior management (Levels 13-16), Permanent 22 2 9.1 6 27.3

Traditional leaders, Abnormal 487

Contract (Levels 9 – 12), Permanent 1 3 300 0 0

Contract (13 – 16), Permanent 1 0 0 0 0

Total 1265 16 1.3 577 45.6

6 – Employment Equity The tables in this section are based on the formats prescribed by the Employment Equity Act, 55 of 1998.

6.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March 2011

Male Female Total

African Coloured Indian White African Coloured Indian White

Legislators, senior officials and managers, Permanent 13 0 1 1 6 0 0 1 22

Professionals, Permanent 18 0 0 1 23 0 0 1 43

Clerks, Permanent 137 0 0 0 184 0 0 2 323

Service and sales workers 1 0 0 0 0 0 0 0 1

Plant and Machine operators and assemblers, Permanent 1 0 0 0 0 0 0 1

Elementary occupations, Permanent 134 1 0 3 117 0 0 2 257

Technicians and associate professionals, Permanent 81 1 1 0 66 0 0 1 150

Other, Permanent 290 0 0 0 197 0 0 0 487

Total 675 2 2 5 593 0 0 7 1284

Employees with disabilities 11 0 0 0 3 0 0 0 14

172


6.2 Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2011

Male Female

African Coloured Indian White African Coloured Indian White Total

Top Management 2 0 0 0 0 0 0 0 3

Senior Management 12 1 1 5 0 0 1 19

Professionally qualified and experienced specialists and mid-management 87 0 0 3 66 0 0 2 154

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

245 2 0 1 269 0 0 1 518

Semi-skilled and discretionary decision making 43 0 0 0 52 0 0 3 98

Unskilled and defined decision making 287 0 0 0 200 0 0 0 487

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

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

Contract (Skilled), Permanent 0 0 0 0 0 0 0 0 0

Total 677 2 1 5 592 0 0 7 1284

6.3 Recruitment for the period 1 April 2010 to 31 March 2011

Male Female


Professionally qualified and experienced specialist 3 0 0 0 2 0 0 0 5


7 0 0 0 8 0 0 1 16



Contract(Professionally qualified) 1 0 0 0 0 0 0 0 0


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

Total


173


6.4 Promotions for the period 1 April 2010 to 31 March 2011

Male Female


Senior Management 4 0 0 0 4 0 0 0 8



12 0 0 0 10 0 0 0 22




Total 37 0 0 0 46 0 0 1 84


6.5 Terminations for the period 1 April 2010 to 31 March 2011

Male Female


Senior Management, Permanent 0 0 0 0 0 0 0 0 0



6 0 0 0 5 0 0 1 12




Contract (skilled), Permanent 1 0 0 2 1 0 0 0 4

Total 22 0 0 2 6 0 0 1 31


174


6.6 Disciplinary action for the period 1 April 2010 to 31 March 2011

Male Female


Disciplinary action 4 0 0 1 7 0 0 1 13

6.7 Skills development for the period 1 April 2010 to 31 March 2011

Male Female


Legislators, senior officials and managers 23 0 2 2 19 0 0 2 48



2 0 0 0 0 0 0 0 2

Clerks 25 0 0 0 49 0 0 1 75

Service and sales workers 4 0 0 0 11 0 0 0 15

Skilled agriculture and fishery workers 0 0 0 0 0 0 0 0 0

Craft and related trades workers 0 0 0 0 0 0 0 0 0

Plant and machine operators and assemblers 0 0 0 0 0 0 0 0 0

Elementary occupations 0 0 0 0 0 0 0 0 0

Total 55 0 2 2 79 0 0 4 142


175


TABLE 7.1 – Performance Rewards by race, gender, and disability, 1 April 2010 to 31 March 2011

Beneficiary Profile Cost

Number of beneficiaries Total number of employees in group

% of total within group Cost (R’000) Average cost per employee (R)

African, Female 253 381 66.4 1,543 6,099

African, Male 248 379 65.4 1,738 7,008

Asian, Male 1 1 100 35 34,631

Coloured, Male 2 2 100 11 5,652

Total Blacks, Female 253 381 66.4 1,543 6,099

Total Blacks, Male 251 382 65.7 1,784 7,108

White, Female 5 7 71.4 45 9,094

White, Male 3 5 60 47 15,516

Employees with a disability 7 2 350 50 7,194

TOTAL 519 777 66.8 3,470 6,685

TABLE 7.2 – Performance Rewards by salary bands for personnel below Senior Management Service, 1 April 2010 to 31 March 2011

Salary Bands Beneficiary Profile Cost

Number of beneficiaries Number of employees % of total within salary bands

Total Cost (R’000) Average cost per employee

Lower skilled (Levels 1-2) 1 0 0 2 2,000

Skilled (Levels 3-5) 43 87 49.4 146 3,395

Highly skilled production (Levels 6-8) 359 508 70.7 1,836 5,114

Highly skilled supervision (Levels 9-12) 112 155 72.3 1,345 12,009

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

Contract (Levels 9-12) 0 1 0 0 0

Periodical Remuneration 0 9 0 0 0

Abnormal Appointment 0 481 0 0 0

TOTAL 515 1244 41.4 3329 6464

TABLE 7 – Performance Rewards

176


TABLE 7.3 – Performance Rewards by critical occupations, 1 April 2010 to 31 March 2011

Critical Occupations Beneficiary Profile Cost

Number of beneficiaries Number of employees

% of total within occupation

Total Cost (R’000)

Average cost per employee

Administrative related, Permanent 73 113 64.6 761 10,425

Cleaners in offices workshops hospitals etc., Permanent 12 12 100 31 2,583

Client inform clerks(switchb recept inform clerks) 2 3 66.7 6 3,000

Communication and information related 0 4 0 0 0

Finance and economics related 2 3 66.7 34 17,000

Financial and related professionals 7 7 100 65 9,286

Financial clerks and credit controllers 6 7 85.7 55 9,167

General legal administration & rel. professionals 1 1 100 10 10,000

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

Human resources & organisat developm & relate prof 3 4 75 49 16,333

Human resources clerks 2 4 50 9 4,500

Human resources related 1 3 33.3 8 8,000

Information technology related 16 19 84.2 128 8,000

Legal related 1 1 100 20 20,000

Library mail and related clerks 5 6 83.3 22 4,400

Messengers porters and deliverers 2 4 50 7 3,500

Motor vehicle drivers 1 1 100 4 4,000

Other administrat & related clerks and organisers 164 276 59.4 800 4,878

Other administrative policy and related officers 31 33 93.9 195 6,290

Other occupations 175 238 73.5 1,122 6,411

Rank: Unknown 0 1 0 0 0

Secretaries & other keyboard operating clerks 11 21 52.4 44 4,000

Security guards 0 1 0 0 0

Senior managers 4 13 30.8 100 25,000

Youth workers 0 1 0 0 0

TOTAL 519 777 66.8 3470 6686

177


TABLE 8.1 – Foreign Workers, 1 April 2010 to 31 March 2011, by salary band

1 April 2010 31 March 2011 Change

Number % of total Number % of total Number % change

Lower skilled (Levels 1-2) 0 0 0 0 0 0

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

Highly skilled production (Levels 6-8) 0 0 0 0 0 0

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

Abnormal appointment 0 0 0 0 0 0

Total 2 0 0 0 0 0

8 – Foreign Workers

TABLE 8.2 – Foreign Worker, 1 April 2010 to 31 March 2011, by major occupation

1 April 2010 31 March 2011 Change

Number % of total Number % of total Number % change

Other occupations 0 0 0 0 0 0

Other occupations 0 0 0 0 0 0

Professionals and Managers 0 0 0 0 0 0

Total 0 0 0 0 0 0

TABLE 9.1 – Sick leave, 1 January 2010 to 31 December 2010

Salary Band Total days % days with medical certification

Number of Employees using sick leave

% of total employees using sick leave

Average days per employee

Estimated Cost (R’000)

Skilled (Levels 3-5) 287 97.2 36 18.6 8 83

Highly skilled production (Levels 6-8) 821 97.3 86 44.3 10 399

Highly skilled supervision (Levels 9-12) 341 93.3 61 31.4 6 372

Senior management (Levels 13-16) 46 89.1 10 5.2 5 115

Contract (Levels 13-16) 3 0 1 0.5 3 8

TOTAL 1498 95.9 194 100 8 977

Skilled (Levels 3-5) 287 97.2 36 18.6 8 83

Highly skilled production (Levels 6-8) 821 97.3 86 44.3 10 399

9 - Leave utilisation for the period 1 January 2010 to 31 December 2010

178


TABLE 9.2 – Disability leave (temporary and permanent), 1 January 2010 to 31 December 2010

Salary Band Total days taken % days with medical certification

Number of Employees using disability leave

% of total employees using disability leave

Average days per employee

Estimated Cost (R’000)

Lower skilled (Levels 1-2) 0 0 0 0 0 0

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

Highly skilled production (Levels 6-8) 0 0 0 0 0 0

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

Total 0 0 0 0 0 0

TABLE 9.3 – Annual Leave, 1 January 2010 to 31 December 2010

Salary Bands Total days taken Average per employee

Lower skilled (Levels 1-2) 24 12

Skilled (Levels 3-5) 1692 21

Highly skilled production (Levels 6-8) 7399 19

Highly skilled supervision (Levels 9-12) 2651 18

Senior management (Levels 13-16) 242 15

Contract (Levels 3-5) 1 1



TABLE 9.4 – Capped leave, 1 January 2010 to 31 December 2010

Salary Bands Total days of capped leave taken Average number of days taken per employee Average capped leave per employee as at 31 December 2009

Skilled (Levels 3-5) 26 7 65

Highly skilled production (Levels 6-8) 3 3 94

Highly skilled supervision (Levels 9-12) 4 2 74

TOTAL 33 5 76

179


TABLE 9.5 – Leave payouts for the period 1 April 2010 to 31 December 2010

REASON Total Amount (R’000) Number of Employees Average payment per employee

Leave payout for 2010/11 due to non-utilisation of leave for the previous cycle 27 1 27000

Capped leave payouts on termination of service for 2010/11 267 39 6846

Current leave payout on termination of service for 2010/11 18 2 9000

TOTAL 312 42 7429

TABLE 10.1 – Steps taken to reduce the risk of occupational exposure

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

Key steps taken to reduce the risk

CDW unit Department of Health agreed to have training sessions with this unit for preventative measures.

Youth employees (Peer pressure and inability to exercise self control) Awareness workshops and departmental events

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

Question Yes No Details, if yes

1. Has the department designated a member of the SMS to implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regula-tions, 2001? If so, provide her/his name and position.

X

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 an-nual budget that is available for this purpose.

X 03

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

X The programme is implemented according to the pillars of the Employee Health and Wellness

10- HIV/AIDS and Health Promotion Programmes

180


4. Has the department established (a) committee(s) as contemplated in Part VI E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent

X Ms Zanele SibiyaMs Nhlanhla ZuluMs Bheki SimelaneMs Ntokozo NdubaziMs Philadelphia NgwenyaMs N.L MlimiMr WelcomeThembaMr Musa MbetheMs Lindi ShongweMs Linda MahlanguMs Daphney SitholeMs Zinhle ShabalalaMs Rachel MaputuMr Sabelo ZuluMs Sakhile LekhuleniMr Isaiah ChiloaneMs Lindiwe KhozaMs K .LeteleMs Phumzile NyoniMr Frank KhumaloMr Kgomotso Manzini

5. Has the department reviewed its employment policies and practices to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so reviewed.

X

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

X The Department has just completed a re-viewed policy on HIV and AIDS and TB management which covers issues around discrimination.

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

X According to the result of VCT conducted at the Provincial office, 02 females tested posi-tive and KwaMhlanga 01 female. Only one disclosed.

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

X Questionnaire has been develop to measure the impact of the Programme.

181


TABLE 11.1 – Collective agreements, 1 April 2010 to 31 March 2011

Subject Matter Date

N/A N/A

TABLE 11.2 – Misconduct and disciplinary hearings finalised, 1 April 2010 to 31 March 2011

Outcomes of disciplinary hearings Number % of total

Correctional counselling 0 0

Verbal warning 0 0

Written warning 2 0.1

Final written warning 3 0.2

Suspended without pay 3 0.2

Fine 0 0

Demotion 0 0

Dismissal 0 0

Not guilty 2 0.1

Case withdrawn 3 0.2

Total 13 1.01

If there were no disciplinary hearings, then use the following table

Disciplinary hearings – 2010/ 11 None

182


TABLE 11.3 – Types of misconduct addressed at disciplinary hearings

Type of misconduct Number % of total

Absenteeism 3 0.2

Total 3 0.2

TABLE 11.4 – Grievances lodged for the period 1 April 2010 to 31 March 2011

Number % of Total

Number of grievances resolved 4 0.33

Number of grievances not resolved 8 0.66

Total number of grievances lodged 12 0.99

TABLE 11.5 – Disputes lodged with Councils for the period 1 April 2010 to 31 March 2011

Number % of Total

Number of disputes upheld 0 0

Number of disputes dismissed 0 0

Total number of disputes lodged 0 0

TABLE 11.6 – Strike actions for the period 1 April 2010 to 31 March 2011

Total number of person working days lost 0

Total cost (R’000) of working days lost R0.00

Amount (R’000) recovered as a result of no work no pay R0.00

TABLE 11.7 – Precautionary suspensions for the period 1 April 2010 to 31 March 2011

Number of people suspended 2

Number of people whose suspension exceeded 30 days 2

Average number of days suspended 54

Cost (R’000) of suspensions R92 540.09

183


12.1 Training needs identified 1 April 2010 to 31 March 2011

Occupational Categories Gender Number of employees

as at 1 April 2010

Training needs identified at start of reporting period

Learnerships Skills Programmes & other short courses

Other forms of training Total

Legislator, senior officials and managers, Permanent

Female 2 0 0 0 0

Male 64 0 0 0 0

Clerks, Permanent Female 169 0 24 0 24

Male 231 0 35 0 35

Elementary occupations, Permanent

Female 143 0 150 0 0

Male 143 0 75 0 0

Professional, Permanent Female 0 0 150 0 150

Male 0 0 75 0 75

Other, Permanent Female 20 0 20 0 20

Male 18 0 15 0 15

Female 174 0 0 0 0

Male 332 0 0 0 0

Traditional Leaders Female 508 0 194 0 194

Male 770 0 125 0 125

Total 1278 0 319 0 319

12 - Skills development

184


12.2 Training provided 1 April 2010 to 31 March 2011

Occupational Categories Gender Number of employees

as at 1 April 2010

Training needs identified at start of reporting period

Learnerships Skills Programmes & other short courses

Other forms of training Total

Legislator, senior officials and managers, Permanent

Female 2 0 14 0 14

Male 64 0 15 0 15

Clerks, Permanent Female 169 0 0 0 0

Male 231 0 0 0 0

Elementary occupations, Permanent

Female 143 0 0 0 0

Male 143 0 0 0 0

Professional, Permanent Female 0 0 37 0 37

Male 0 0 22 0 22

Other, Permanent Female 20 0 11 0 11

Male 18 0 4 0 4

Female 174 0 0 0 0

Male 332 0 0 0 0

Traditional Leaders Female 0 0 0 0 0

Male 0 0 0 0 0

Female 488 0 62 0 62

Male 748 0 41 0 41

Total 1278 0 103 0 103

185


Utilisation of consultants

Table 14.1 – Report on consultant appointments using appropriated funds

Project TitleTotal number of consultants that

worked on the project

Duration:

Work days

Contract value in

Rand

Rapid Response Unit 2 R24 000 000

Risk assessment and valuation of internal controls 1 R464 000 000

MIG impact assessment 3

Capacity building 3

Total number of projects Total individual consultants

Total duration:

Work days Total contract value in Rand

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

Project TitlePercentage ownership by HDI groups Percentage management by HDI groups

Number of Consultants from HDI groups that work on the project

Rapid Response Unit 100 % 100% 10

TABLE 13.1 – Injury on duty, 1 April 2010 to 31 March 2011

Nature of injury on duty Number % of total

Required basic medical attention only 2 100

Temporary Total Disablement 0 0

Permanent Disablement 0 0

Fatal 0 0

Total 2 100

13 – Injury on duty

186


Documents

Annual Report · The presentation of the 2010/11 Annual Report provides a detail account of the progress ... eni and Nkomazi Local Municipality as well as Ehlanzeni District Municipality