DEPARTMENT OF SPORT, ARTS, CULTURE AND RECREATION (VOTE … · 2018-08-15 · 8 FS: SPORT, ARTS, CULTURE AND RECREATION VOTE 12 ANNUAL REPORT 2013/2014 3. FOREWORD BY THE MEC The

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FS: SPORT, ARTS, CULTURE AND RECREATIONVOTE 12

ANNUAL REPORT 2013/2014

DEPARTMENT OF SPORT, ARTS, CULTURE AND RECREATION(VOTE NO 12)

ANNUAL REPORT

2013/14

PROVINCE OF FREE STATE

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CONTENTS PAGE

PART A: GENERAL INFORMATION 4

1. DEPARTMENTAL GENERAL INFORMATION 5 2. LIST OF ABBREVIATIONS/ACRONYMS 7 3. FOREWORD BY THE MEC 8

4. REPORT OF THE ACCOUNTING OFFICER 10

5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF 24

ACCURACY FOR THE ANNUAL REPORT

6. STRATEGIC OVERVIEW 25

6.1 Vision 25

6.2 Mission 25

6.3 Values 25

7. LEGISLATIVE AND OTHER MANDATES 25

8. ORGANISATIONAL STRUCTURE 27

9. ENTITIES REPORTING TO THE MEC 28

PART B: PERFORMANCE INFORMATION 29

1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES 30

2. OVERVIEW OF DEPARTMENTAL PERFORMANCE 30

2.1 Service Delivery Environment 30

2.2 Service Delivery Improvement Plan 32

2.3 Organisational Environment 34

2.4 Key policy developments and legislative changes 38

3. STRATEGIC OUTCOME ORIENTED GOALS 40

4. PERFORMANCE INFORMATION BY PROGRAMME 42

4.1 Programme 1: Administration 42

4.2 Programme 2: Cultural Affairs 43

4.3 Programme 3: Library and Archive Services 49

4.4 Programme 4: Sport and Recreation 54

5. TRANSFER PAYMENTS 60

5.1 Transfer payments to public entities 60

5.2 Transfer payments to all organisations other than public entities 61

6. CONDITIONAL GRANTS 61

6.1 Conditional grants and earmarked funds paid 61

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6.2 Conditional grants and earmarked funds received 62

7. DONOR FUNDS 67

7.1 Donor Funds Received 67

8. CAPITAL INVESTMENT 68

8.1 Capital investment, maintenance and asset management plan 68

PART C: GOVERNANCE 71

1. INTRODUCTION 72

2. RISK MANAGEMENT 72

3. FRAUD AND CORRUPTION 72

4. MINIMISING CONFLICT OF INTEREST 72

5. CODE OF CONDUCT 73

6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES 74

7. PORTFOLIO COMMITTEES 74

8. SCOPA RESOLUTIONS 75

9. PRIOR MODIFICATIONS TO AUDIT REPORTS 79

10. INTERNAL CONTROL UNIT 80

11. INTERNAL AUDIT AND AUDIT COMMITTEES 81

12. AUDIT COMMITTEE REPORT 83

PART D: HUMAN RESOURCE MANAGEMENT 86

1. INTRODUCTION 87

2. OVERVIEW OF HUMAN RESOURCES 87

3. HUMAN RESOURCES OVERSIGHT STATISTICS 90

PART E: FINANCIAL INFORMATION 118

1. REPORT OF THE AUDITOR GENERAL 119

2. ANNUAL FINANCIAL STATEMENTS 122

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1

PART AGENERAL INFORMATION


PART BPERFORMANCE INFORMATION

PART CGOVERNANCE

PART D

GOVERNANCE

HUMAN RESOURCE MANAGEMENT

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1. DEPARTMENT GENERAL INFORMATION

PHYSICAL ADDRESS: CNR EAST BURGER AND HENRY STREETS

4TH FLOOR, BUSINESS PARTNERS BLD.

BLOEMFONTEIN

9300

POSTAL ADRESS: PRIVATE BAG X 20606

BLOEMFONTEIN

9300

TELEPHONE NUMBER: 051 410 4700

EMAIL ADDRESS: [email protected]

WEBSITE: www.sacr.fs.gov.za

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2. LIST OF ABBREVATIONS

AET Adult Education and Training

AGSA Auditor- General of South Africa

AFCON African Confederations

ANC African National Congress

APP Annual Performance Plan

BCV Basotho Cultural Village

CATHSSETA The Culture, Arts, Tourism, Hospitality and Sport Sector Education and Training Authority

CFO Chief Financial Officer

CHAN Champions of African Nations

CPM Contract Project Management

CUT Central University of Technology

CV Curriculum Vitae

DORA Division of Revenue Act

DR Doctor

DSACR Department of Sport, Arts, Culture and Recreation

EHWP Employee Health and Wellness Programme

ELC Early Learning Centre

EPWP Expanded Public Works Programme

EXCO Executive Council

FET Further Education and Training

FS Free State

FSSSI Free State Sport Science Institute

HDI Historically Disadvantaged Individual

HOA Home Owners Allowance

HOD Head of Department

HR Human Resource

ICT Information and Communication Technology

IT Information Technology

KCM Key Control Measures

KPI Key Performance Indicator

LOGIS Logistical Information System

MACUFE Mangaung African Cultural Festival

MDP Management Development Programme

MEC Member of the Executive Council

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MTEF Medium-Term Expenditure Framework

NAC National Arts Council

NGO Non-Governmental Organisation

NTC National Training Centre

PACC Provincial Arts and Culture Council

PACOFS Performing Arts Council of Free State

PanSALB Pan-South African Language Board

PERSAL Personnel and Salary System

PDMS Performance Development Management System

PFMA Public Finance Management Act

PGNC Provincial Geographic Names Committee

PHRA Provincial Heritage Resource Authority

PT Provincial Treasury

PW Public Works

RFID Radio Frequency Identification

RSA Republic of South Africa

SA South Africa

SACR Sport, Arts, Culture and Recreation

SAIGA South African Institute of Government Auditors

SCM Supply Chain Management

SLA Service Level Agreement

SMS Senior Management Services

SASCOC South African Sport Confederations Council

SMME Small Micro Medium Enterprise

SRSA Sport and Recreation South Africa

U-AMP User Asset Management Plan

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3. FOREWORD BY THE MEC

The financial year which is reported on in this annual report also represents the culmination of the celebra-tion of the 20th anniversary of our hard won freedom and democracy. For our post-apartheid dispensation this is therefore a period of great reflection on the road we have travelled since the onset of democracy and freedom. It is indeed also a period of celebration.

This annual report is also presented against the backdrop of other two important milestones in the history of our new democracy. The father of our democracy, Comrade Nelson Mandela passed on. Although his departure was bound to come, and we had to expect it, it nevertheless left us as a nation, and indeed the entire world community, in deep pain. He was certainly one of a kind and may we continue to draw inspira-tion from his endless magnanimity.

Our country’s democratic strength has also been put to a test through the fifth democratic elections that it went through. The end of term of the fourth democratic government also presents us with an opportunity to reflect on the milestones of the last five years.

As the government of the African National Congress we are proud of the milestones we have laid in the last five (5) years in general and the last financial year in particular as captured in this annual report.

The Department is proud of its good performance as regard governance and administration as reflected in the 2013/14 Clean Audit report from the Auditor-General. We commit ourselves to ensuring the same outcome for the 2014/15 financial year. We will continue to work hard to realise the mandate given to us by President Jacob Zuma of ensuring radical economic transformation and service delivery in our country in general.

I will like to take this opportunity to thank firstly the dedicated staff of the Department of Sport, Arts, Culture and Recreation. Without the hard work of a team like this, the Department would not be where it is today.

Without the support of partners and stakeholders of this Department, the communities of the Free State broadly, the achievements outlined in this report would not have been possible.

I should also express my gratitude to the visionary leadership of the Premier of the Free State, Comrade

3. FOREWORD BY THE MEC

“In the spirit of the dead, the living, the unborn, Empty your ears of all impurities, o listener, that you may hear my story ...”

The financial year which is reported on in this annual report also represents the thculmination of the celebration of the 20 anniversary of our hard won freedom and

democracy. For our post-apartheid dispensation this is therefore a period of great reflection on the road we have ravelled since the onset of democracy and freedom. It is indeed also a period of celebration.

This annual report is also presented against the backdrop of other two important milestones in the history of our new democracy. The father of our democracy, Comrade Nelson Mandela passed on. Although his departure was bound to come, and we had to expect it, it nevertheless left us as a nation, and indeed the entire world community, in deep pain. He was certainly of the one kind and may we continue to draw inspiration from his endless magnanimity.

Our country's democratic strength has also been put to a test through the fourth democratic elections that it went through. The end of term of the fourth democratic government also presents us with an opportunity to reflect on the milestones of the last five years.

As the Department of Sport, Arts, Culture and Recreation we are proud of the milestones we have laid in the last five years in general and the last financial year in particular as captured in this annual report.

The 2013/14 year can be remembered first and foremost as the year in which theDepartment of Sport, Arts, Culture and Recreation achieved its first ever clean audit report from the office of the Auditor General. The Department also received awards from the South African Auditors' Institute for Government Auditing (SAIGA) for adhering to requisite reporting standards.

Amongst the key milestones at service delivery level are the following in summary:

- SASCOC's National Training Centre (NTC) was launched in partnership with FSSSI as a “one of a kind”, state-

of-the-art facility within the Province, servicing national and international athletes with the NTC hosting the

Chinese Taipei Women's Tug of War team.

- At the newly established High Performance Centres for Netball, Karate, Judo, Badminton and

Boxing,athletes and coaches were trained that perform excellent on the national and international arena.

- The Province's Sport Infrastructure was also boosted by the completion of Community Gyms, Stadia as well

as Multi-purpose Sport Courts, as well as Indoor Sport Centres in Odendaalsrus and Parys, of which

construction has recently started.

- The Civic Theatre in Bloemfontein has been taken over and refurbished by the Department to serve as the

home base for local performing artists.

- Four (4) new libraries have been built across the Free State; 29 toy libraries are also being established.

- Heritage sites such as Thomas Mthobi Mapikela house and grave, Wesleyan Church (Founding place of the

African National Congress), Reverend Zaccarius Mahabane's grave and Sipho Mutsi grave have been

declared.

- Geographical names of several towns, streets and places have been reviewed. These include, amongst others,

Maitland Street (Charlotte Maxeke Street); Bloemfontein International Airport (Bram Fischer

International Airport); Petrus Steyn (Mamafubedu town).

These and other many milestones catalogued in this report represent the spirit that prevailed in this Department and the entire Free State Provincial Government in the last five years, which is the spirit of working together.

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Ace Magashule, for his integrated approach of governance and service delivery as expressed through Operation Hlasela.

Entering the new term of this administration I have no doubt that this good story will continue to unfold well into the future.

MS NS LEETO

MEMBER OF THE EXECUTIVE COUNCIL

SPORT, ARTS, CULTURE AND RECREATION

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REPORT OF THE ACCOUNTING OFFICER for the year ended 31 March 2014

4. REPORT OF THE ACCOUNTING OFFICER

4.1 GENERAL REVIEW OF THE STATE OF FINANCIAL AFFAIRS

4.1.1 Important policy decisions and strategic issues

Administration

• Continue to roll out Cultural Evenings to all higher education institutions across the country, where there are Free State Provincial Government bursary holders

• Intake of seven graduates on internship programme

• Implement bar-coding assets

• Clean Audit 2013/14 (to maintain the clean audit 2012/13)

Cultural Affairs

• Rolling out Arts in Schools Programme to 120 schools around the province.

• Field Band Foundation to provide brass, dance and life skills training for young people coming from schools in Thaba-Nchu and Botshabelo.

• Thabong Community Arts Centre continues to host the annual Disability Dance Competitions, as one of flagship programmes in the department.

• Approval of Provincial Language Policy.

• Present drama productions based on Grade 12 set works; focus on “Nothing but the Truth”.

• Strings Programme will be extended to Fezile Dabi District.

• Present Spelling BEE and debates in collaboration with the Free State Department of Education.

• Commence with Arts in Prisons Programme in Fezile Dabi and Lejweleputswa Districts, focusing on performing arts, sewing and visual arts.

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• Launch MACUFE After-care Programme, aimed at developing and improving skills of artists that were identified through MACUFE auditions.

• Embark on the process of scaling down of museums in the province.

• Commence with a process of digitalizing museum artefacts to ensure that provincial museums are in teractive and reflect the demographics of the province.

• Declare Thomas Maphikela and Winnie Mandela Houses as Provincial Heritage Sites and the graves of Dr Moroka and Rev Mahabane, and The Wesleyan Church as National Heritage Sites.

• Establish Section 97 Committees for local and district municipalities, on the processes of name change, according to legislation.

Library and Archives Services

• The provincialization of public library services continued in 2013/14 with 3 municipalities being re-funded partially for services rendered and services handed back by 5 municipalities. The provincializa-tion will be fast tracked in 2014/15 with funding received as part of the Community Library Conditional Grant.

• Facilities, services and human resources to be managed, monitored and maintained at 173 libraries.

• Library collections to be maintained with the procurement of approximately 70 000 items of new

material.

• Access to library services to be improved with the construction of new libraries in Smithfield, Luckhoff, Soutpan, Wepener, Arlington, Clarens and Memel, Oranjeville and Hobhouse over the MTEF. Planning and design of new libraries in Verkeerdevlei, Bolokanang and Botshabelo will start in 2014/15.

• Upgrading of Bloemfontein Public Library to provide more seating for students using the library, will continue.

• The ICT infrastructure at public libraries will be maintained at all libraries, to provide access to the use of computers and the Internet, thereby bridging the digital divide.

• Library Services will embark on a programme to assist the Education Department with the establish-ment of school libraries. Ten libraries to be established over the MTEF with funding from the Commu-nity Library Conditional Grant.

• The asset management of library materials will be enhanced with the migration from a bar code sys-tem of asset management to radio frequency identification. The project will be funded with a grant from the European Union.

• Upgrading and maintaining of security at library buildings, with security fencing, electronic security gates and burglar alarm systems.

• Continuation of the programme to assist municipalities and government departments to develop and implement sound record management systems.

• Revival of the oral history programme with the appointment of an oral history archivist.

Sport and Recreation

• Continuation of the upgrading of the Seisa Ramabodu Stadium in Mangaung and Sipho Mutsi Sport Stadium in Odendaalsrus, as part of the centenary legacy projects.

• Completion of the Fezile Dabi Stadium in Tumahole, Parys, was reached in the 2013/14 financial year and thus officially handed over to the municipality.

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• Development of Indigenous Games to national level.

Strengthening of the Senior Citizens Programme

• Financial and secretarial support to Sport and Recreation Councils at district level.

• New strategy for implementing School Sport Mass Participation Programme, by using educators to implement the programme instead of using sport assistants.

• Continuing with Mass Sport Participation Programme to promote sport and recreation activities in the province, with a view to:

- Reduce the level of crime, promote a healthy lifestyle and create a culture of sport and recreation.

- Achieve overall improvement of physical fitness and increase the number of participants

• Hosting of the CHAN football tournament in conjunction with the Mangaung Metro Municipality on 11 January to 1 February 2014

• Capacity building programmes for athletes, coaches, educators and volunteers

• Assist with the improvement of the performance of elite athletes and coaches to reach a level of excel-lence

• Strengthening support to structures of civil society

4.1.2 Overviewoftheresults,challenges,significanteventsandotherprojects

Cultural Affairs

• Departmental terminology booklet was launched.

• Six names for renaming were submitted to the National Office for endorsement.

• Inaugural International Museum Day was celebrated in Philippolis

• MACUFE 2013 was successfully hosted with a total attendance figure of Main Festival number of

tickets sold: 19028

• Boxing Tournament 306

• Gospel Festival 3 367

• Macufe Indoor Jazz 2 596

• Macufe Divas Concert 3 900

• Macufe Comedy 2 355

• Macufe Rock Festival 1 150

• Umoja 2 431

• The Plot 2 000

• Macufe Cup 35 000

• Macufe Corporate Village 2 000

• 50 craft projects have been selected to be part of the MACUFE Arts and Craft programme. The over-achievement is informed by large number of people who wish to form part of this great event in the calendar of the Free State Province. Intensive marketing of the event is another contributing factor together with quality of artists who perform in the event. The event has been extended with film and theatre productions which is another factor contributing to high attendance.

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• The Visual Art and Craft Unit worked with Bartimea School to stage the first ever Deaf Theatre for MACUFE 2013.

• Three Free State choirs took part in the Annual Old Mutual Choral Music Festival in Durban.

• Provincial School Choral Music competitions were coordinated in partnership with SYRAC, focusing on the singing of the National Anthem.

• Free State district Inter-denominational Gospel Choral Competition was hosted.

• The Arts in Schools Programme was rolled out in the province.

Library and Archives

• Phase 1 of the Bloemfontein Public Library was completed. Upgrades at Oppermansgronde and reha-bilitation of Harrismith Library were also completed.

• The construction of the new Jacobsdal-Ratanang Library is 95% completed.

• 171 of 173 libraries have now on-line connectivity and public Internet access, which provides access to up-to-date information resources and contributes to national programmes to bridge the digital divide existing traditionally between the rich and the poor, and urban and rural communities.

• 86 204 new items of library material (books, toys, audio-visual materials) were procured during 2013/14,thereby upgrading library collections with a range of new and needs-based materials.

• As part of the service that supports early childhood development programmes, toy library services were established at six libraries, giving access to educational toys.

• Special services for the visually impaired were maintained at 15 libraries: three per district.

• Programmes to promote a culture of reading and library usage were presented on World Book Day, Mandela Day, Literacy Day and during the Library Week. A Spelling BEE competition was successfully presented.

• Virtual library service, giving library users the opportunity to borrow electronic books from the library, was launched, thus improving access to new technologies and media.


• Motlalepula Ntsala Football Tournament was successfully delivered in Ficksburg in remembrance of the learner who lost his life in the field of play.

• The Dlala Mantombazana Girls Development Games took place in August in Thaba Nchu.

• The Sipho Mutsi Games were held in Odendaalsrus. This was the culmination of a process that began with schools leagues at town level, which escalated to municipal and district level.

• The Provincial Senior Citizens Games took place in Thaba Nchu and Senior Citizens Team Free State participated in National Games held in Boksburg.

• Provincial Indigenous Games were held in Reitz.

• The Provincial Youth Camp was held in Bloemfontein as finale of the district Youth Camps.

• The Provincial OR Tambo Games and Provincial Big Walk were held in Welkom.

• The SA National Top Schools Championship was hosted by Free State Province in Bloemfontein.

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• Completed the construction of a High Performance Training Centre for netball, table tennis and

badminton in Bloemfontein.

• The Anti-Gangsterism League is still being implemented successfully with the main purpose of curbing social ills.

• The FSSSI has continued to support elite athletes and coaches for badminton, boxing, karate, judo, netball and sport for disabilities with preparation for national and international tournaments. Several medals were won by these athletes for the province.

• The FSSSI has continued to support elite athletes and coaches in badminton, boxing, karate, judo, netball and sport for disabilities with their preparation for national and international tournaments. Sev-eral medals were won by these athletes.

4.2Overviewofthefinancialresultsofthedepartment

4.2.1 Departmental receipts

Departmental receipts 2013/2014 2012/2013

Estimate Actual Amount Col-lected

(Over)/Under Collection

Estimate Actual Amount Collected


R’000 R’000 R’000 R’000 R’000 R’000Sale of goods and services other than capital assets

10 058 9 508 (550) 9 198 8 813 (385)

Transfers received 3 391 5 891 2 500 6 020 6 020 -Fines, penalties and forfeits 23 32 9 22 29 7

Interests, dividends and rent on land 102 96 (6) 97 454 357

Sale of capital assets 8 4 (4) 8 3 (5)Financial transactions in assets and liabilities 261 198 (63) 214 536 322

Total 13 843 15 729 1 886 15 559 15 855 296

In order to determine revenue tariff, inputs are requested from relevant units or sub programmes. If all the contents are supported by the revenue unit, the unit writes the submission/s for consideration/ recommen-dation/ approval to the following role players:

• Deputy Director: Budgeting and Revenue (who is also the Principal Receiver of Revenue) for recom-mendation

• Senior Manager: Financial Administration, for recommendation

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• Chief Financial Officer, for recommendation

• Accounting Officer, for recommendation

• Chief Executive Officer: Provincial Treasury, for approval

The relevant unit or sub programme is then notified of the new approved tariffs and implementation date.

Revenue collection point

Tariffs for good and services not changed

Free services rendered by the Department that wouldhaveyieldedsignificantrevenue

Administration •Sales: Tender documents •Sales of Tender documents less than R 500 000.00

Cultural Affairs

•Sale of goods: meals, curio•Course fees: Registration and course fees•Day care fees: Registration and course fees•Entrance fees•Photocopies and faxes•Sport & Club facilities•Rental: Capital assets(Rental of building and equipment)

•Parking fees (R110 per vehicle). The Department do not keep the record of officials with vehicles at this collection points, therefore no costs could be determined

Library and Archive Services

•Sale of goods: waste paper and books•Photocopies and faxes•Rental: Capital assets(Rental of building and equipment)


Sport & Recreation •Entrance fees•Sport & Club facilities


The bulk of revenue was generated from the sales of tickets from MACUFE events on Cultural Affairs. Rev-enue is more than the annual target because of the donation received as a result of sponsorships raised by the Department and Events Company. An amount of R2,5 million earmarked for the two programmes: Mine Dance 2014 and Macufe Development Programme 2014 by the National Department of Arts and Cul-ture, was received late in the 2013/2014 financial year. The amount was paid into the Provincial Revenue Fund and a submission was sent to the Provincial Treasury to request this amount to be availed through the Adjustment Appropriation 2014/15.

The Department has done well by collecting more than R15 million within the revenue target during the 2013/2014 financial year.

4.2.2 Departmental expenditure

The final Budget allocation to the Department of Sport, Arts, Culture and Recreation was R550.899 million, as increased by R24.148 million during the 1st Adjustment Budget and then by R11.614 million during the Special Adjustment Budget.

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The Budget increase of R24.148 million during the 1st Adjustment Budget was necessitated by the

following:

(a) Rollovers – R1.185 million

Programme 3: Library and Archive Services

Oppermansgronde Public Library Upgrade R1.185 million

(b) Other adjustments R27.789 million

Improvement in the conditions of service R0.448 million

Re-grading of clerical posts R0.298 million

Sport Administration Learnership programme R0.131 million

Additional allocation for MACUFE 2013 R26.912million

(c) Declared savings (R4.826 million) – Bursaries for the Department

of Education

Compensation of Employees (R4.698 million)

Goods and services (R0.128 million)

The Budget increase of R11.614 million during the 2nd Adjustment

Budget was a result of the following additional allocations:

(a) Community Library Services Grant R1.483 million

(b) Africa Nations Championships R5.000 million

(c) CATHSSETA R0.131 million

(d) Kaiser Sebothelo/Charles Mopeli Stadiums R5.000 million

The budget represented an increase of 22% over the previous year’s allocation of R453.057 million.

The budget enabled the Department to achieve its basic Strategic Objectives.

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Spending trends within the department as a whole

The budget allocation was utilised as follows:

2013/14

R’000

2012/13

R’000

Amount appropriated excluding roll-overs 515 137 435 621

Plus: Adjustment estimates 3 5 762 17 436

Sub-total 550 899 453 057

Less: Total Expenditure 541 863 445 337

Surplus/deficit per appropriation account

9 036 7 720

BUDGET

R’000

PAYMENTS

R’000

UNDERSPENT

R’000

Provincial Infrastructure Grant 167 287 164 708 2 579

EPWP Integrated Grant 550 550 -

Library Service Conditional Grant 65 586 59 422 6 164

Sport and Recreation Conditional

Grant 38 832 38 823 9

Total of earmarked and conditional grants

272 255 263 503 8 752

Equitable share 278 644 278 360 284

TOTAL 550 899 541 863 9 036

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Programme Expenditure

2013/2014 2012/2013

Programme nameFinal

AppropriationActual

Expenditure(Over)/Under Expenditure

Final Appropriation

Actual Expenditure

(Over)/Under Expenditure

Administration 68,054 67,971 83 67,332 67,236 96 Cultural Affairs 127,409 127,300 109 147,699 147,698 1 Library And Archives Services 122,085 115,902 6,183 104,098 99,248 4,850 Sport and Recreation 233,351 230,690 2,661 133,928 131,155 2,773 Total 550,899 541,863 9,036 453,057 445,337 7,720

Reasons for under spending

The under spending in two programmes (Library & Archival Services and Sport & Recreation) is due to Infrastructure projects that were not completed during the year due to delays experienced with the appointment of service providers. The unspent funds were requested as part of the rollover.

Reasons for under-spending

The Department registered a net under spending of R9.035 million in the following areas:

(i) Infrastructure enhancement funds R2.520 million

(a) The following projects were delayed due to the challenges with the appointment of contractors:

Kaiser Sebothelo Stadium R2.123 million

The projects referred to in (a) were not completed and therefore have to be completed during the 2014/15 financial year.

(b) The following projects were not completed due to late performance by contractor

Sipho Mutsi Stadium R0.395 million

(ii) Library Services Conditional Grant R6.164 million

Bloemfontein Public Library Upgrade R0.003 million

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(a) The work is almost complete; this is part of retention funds.

(b) The following two projects were not completed due to late appointment of contractor as a result of delays in finalising planning/design stage including approval of estimates:

Oppermansgronde Library R0.145 million

Wepener Public Library R1.434 million

ClarensKhubetswana R1.000 million

Oranjeville Library R3.583 million

(iii) Equitable share R0.284 million

Mainly due to the following:

Machinery and Equipment R0.097 million

(a) Funds for the Braille machine were availedduring the adjustment budget, after the need was identi-fied. The procurement process took place resulting in the order being issued on 18/03/2014. How-ever the machine was not delivered by 31 March 2013.

b) In future, the mechanism to ensure full delivery of movable capital assets before the end of the year should be more stringently applied.

Goods and Services R0.131 million

(a) Funds from CATHSSETA which was allocated during the 2013/14 Special Adjustment, but not actu-ally received.

(b) The funds were actually received during May 2014 and will be accessed through the 2014/15 Adjust-ment Budget.

4.3 Roll-over of funds

Roll-over of funds to the 2014/15 financial year amounting to R8.780 million was requested for the following:

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Contractors for the building and upgrading of the following facilities:

R’000

Infrastructure enhancement funds

Kaiser Sebothelo Stadium 2 122

Sipho Mutsi Stadium 177

Conditional Grant

Oppermansgronde Library 56

Wepener Public Library 1 434

Clarence Khubetswana 1 000

Orangeville 3 583

Equitable

Braille machine 85

TOTAL 8 769

4.4 Virement

The following amounts were shifted between programmes:

From To R’000 R’000 Administration 1.484

Cultural Affairs 0.055

Library and Archive Services 3.004

Sport and Recreation 4 543

Virement between programmes was a result of the following factors:

Current payment

R1.484 million was shifted from Administration. R649 000 from Cultural Affairs and R1.129 million from Library Services to Sport and Recreation to cover the accommodation and clothing for the-Team Delivery activity in sub-programme: School Sport, in order to provide funds for the unfunded invoices (R3.262 million).

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Infrastructure payments

R1.875 million not spent in Library Services (as a result of late appointment of contractors by (IDT) was shifted to cover the shortfalls: R594 000 in Cultural Affairs and R1.281 million in Sport and Recreation to top up the Seisa Ramabodu Sports Stadium.

Care was taken that no more than 8% per programme be shifted from or to any programme, and that limitations on virement as set out in the public Finance Management Act and Treasury Regula-tions, be adhered to.

4.5 Unauthorised expenditure

No new unauthorised expenditure was incurred during the year under review.

4.6 Irregular expenditure

Additional irregular expenditure of R1.111 million was added this financial year, mainly as a result of non-compliance with SCM regulations, internally and with a participatory contract. Most of the previous year’s irregular expenditure was condoned leaving only a small amount that is still being investigated.

4.7 Fruitless expenditure

New fruitless expenditure of R894 160 was added to last year’s balance of R2.367 million, as a result of a senior manager who was not placed in the organisational structure at that time. An amount of R372 310 was de-recognised after the investigation was completed.

4.8 Any other material fact or circumstances, which may have an effect on the understanding ofthefinancialstateofaffairs

None

4.9 Related party transactions

• The department has office buildings that are occupied by the department and paid for by the De-partment of Public Works.

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• Administrative work is done by the Department of Public Works in administering infrastructure proj-ects of the Department, of which the cost cannot be quantified.

• Fees paid by the Provincial Treasury for the transversal systems on behalf of the department, of which the amount cannot be quantified.

4.10 Supply Chain Management

• No unsolicited bid proposals were received nor concluded for the year under review.

• SCM processes and systems are in place to prevent or minimise irregular expenditure.Irregular expenditures which were detected were concluded without the involvement of SCM Directorate, and were referred to the Liability Committee for further handling and refer to Employment Rela-tions for investigations where necessary. Actions were taken against officials who caused irregular expenditure.

• Challenges experienced in SCM were those relating to bid documents for contracts concluded by Department of Public Works (DPW) and several letters and meetings were held with DPW to re-solve the matter. To date, few of the contract documents are still outstanding from DPW.

• Problems were experienced with the maintenance of certain buildings leased through DPW, and such problems are still being experienced at Business Partners and Warden Buildings. Meetings with the two relevant HODs and managers, including follow up letters to DPW, have not borne the necessary fruits.

4.11 Gifts and Donations received in kind from non related parties

Name of Organisation Nature of Gift Amount

R ‘000Botma, Abang, DMT and National Library

Various books 347

Everybody’s books and others Various books 75

Sasol Group Renovations of public library 2 870

Sasol Group Monitor, DVD Player, Laptop and Printer

85

GIZ Capacity building 236

SASKO Radio promotions and branded news-paper adverts

370

TOTAL 3 983

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4.12 Gifts and Donations made in kind to non related parties

Name of Organisation Nature of Gift Amount

R ‘000Pupils from various schools Spelling BEE Prizes Awarded 215

Disabled Athlete Special Bicycle 65

Various Schools Computer equipment 365

TOTAL 639

4.13 Exemptions and deviations received from the National Treasury

There are no exemptions of deviations received from the National Treasury.

4.14 Events after the reporting date

There were no events (adjusting and non-adjusting), favourable and unfavourable that occurred after the reporting date.

4.15 Financial sustainability

In the current financial year the departmental accruals has increased to R31.945 million, out of which an accrual for construction at the Seisa Ramabodu sport stadium amounts R31.408 million. Taking into account the bank balance of R7.424 million and the 2014/15 commitment of R81.337 million for the construction of the stadium alone, the department’s financial position becomes vul-nerable to any cost escalations on the project, as well as to any new budget restrictions which may occur during the 2014/15 financial year.

4.16 Acknowledgement

The hard work done by the management of the department in order to ensure the success of the department in various achievements in being appreciated.

4.16 Approval and sign off

ADV TH MALAKOANE

ACCOUNTING OFFICER

DEPARTMENT OF SPORT, ARTS, CULTURE AND RECREATION

30 May 2014

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5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT

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

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

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

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

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

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

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

The external auditors are engaged to express an independent opinion on the annual financial state-ments.

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

Yours faithfully

ADV TH MALAKOANE

ACCOUNTING OFFICER

DEPARTMENT OF SPORT, ARTS, CULTURE AND RECREATION

30 May 2014

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6. STRATEGIC OVERVIEW

6.1 Vision

Championing social transformation

6.2 Mission

Creation of an enabling environment for social cohesion and nation building by:

• Establishing structures of civil society to improve levels of governance and administration within sport, arts, culture and recreation

• Implementing inclusive programmes that enhance and retain Free State talent and capacity within sport, arts, culture and recreation as well as ensuring development pathways towards healthy lifestyles and excellence

• Promoting intra and inter-participation and cooperation within all spheres of government

• Promoting sport, arts, culture and recreation tourism within and into the Free State Province

6.3 Values

• A high standard of professional ethics

• Trust build on truth, integrity and reconciliation

• Open communication, transparency and consultation

• Commitment to performance

• Courage to learn, change and be innovative

• Goal and objective driven performance

7. LEGISLATIVE AND OTHER MANDATES

The department operates within the framework of schedule 5, part A of the South African Constitution, Act 108 of 1996, which includes the following:

• Archives other than the national archives

• Library other than national libraries

• Museums other than national museums

• Provincial cultural matters

• Provincial recreation and amenities

• Provincial sport

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As well as the following:

• South African Craft Development Strategy

• National Development Plan

• Free State White Paper on Sport and Recreation

• National Sport and Recreation Act, 110. 1998

• Safety at Sport and Recreational Events Act, 2010 (Act No. 2 of 2010)

• National Sport and Recreation Plan

• Free State Provincial Library and Information Services Act, 1999 (Act no 5 of 1999)

• Free State Provincial Archives Act, 1999 ( Act no 4 of 1999)

• White Paper on Arts, Culture and Heritage Services

• Collection Development Policy

• Pan South African Language Board Act, 1995

• National Heritage Resource Act, 1999

• South African Geographic Names Council Act, 1998

• National Language Policy Framework

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8. ORGANISATIONAL STRUCTURE

For the department to execute its mandate, it operates within the following macro environment, ad-dressing the main services.

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9. ENTITIES REPORTING TO THE MEC

Name of Entity Legislative Man-date

Financial Relation-ship Nature of Operations

Provincial Geographi-cal Names Committee

PGNC Act Transfer payment of R1.191 million

Consultation and renaming of streets

Provincial Heritage Re-source Agency/Council

PHRA Act Transfer payment of R500 000

Preservation of Free State Heritage

Provincial Arts and Cul-ture Council

PACC Act Transfer payment of R2.146 million

Promotion of arts and Culture

Free State Sport Con-federation

Constitution Transfer payment of R2.334 million

Coordination of major sport bodies

Free State Arts and Culture Association

Constitution yet to be developed

Transfer payment of R200 000

Support to artists

Pan South African Lan-guage Board

PANSALB Act Transfer payment of R200 000

Promotion of Free State languages

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1




PART CGOVERNANCE

PART D

GOVERNANCE


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1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES

The AGSA currently performs certain audit procedures on the performance information to provide rea-sonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the report to management, with material findings being reported under the Predetermined Objectives heading in the Report on other legal and regulatory requirements section of the auditor’s report.

Refer to pages 119-121 of the Report of the Auditor-General, published as Part E: Financial Information.

2. OVERVIEW OF DEPARTMENTAL PERFORMANCE

2.1 Service Delivery Environment

Cultural Affairs

The programme addresses a diversity of cultural activities offered through specialised services, which are Arts and Culture, Museums and Heritage Resources Services and Language Services. It aims to addresses issues of social cohesion, nation building and to promote national identity.The programme plays a leading role in organising and managing the major cultural events. This entails celebration of national days of significance such as Heritage and Freedom Days. There is increasing demand for involvement in and contribution to other events such as Mandela Day, International Museums Day, Mine Dance, Disability Dance and Cultural Evenings. The programme is sponsoring the performers at all these events which places pressures on allocated budget as well as limited existing staff within the programme. MACUFE festival has become a world class festival with increased participation of lo-cal, national and international participants that attracts large number of festival lovers. The festival has established itself as an important activity in the national calendar of events and thereby contributing significantly towards cultural tourism in Free State. The programme has established meaningful part-nerships with organisations such as Free State Arts and Culture Association, Free State Writer’s Forum and Performing Arts Council of the Free State in an effort to strengthen and accelerate service delivery in communities of the Free State in performing, virtual arts and crafts.


Library services are provided not only at public/community libraries but also at institutions such as pris-ons, hospitals and nursing colleges.

The provision of library and information services was guided by the objectives set for the conditional grant for the recapitalisation of community libraries, which are to improve services and raise the stan-dards for and quality of service delivery through:

• Upgrading library buildings and improving security

• Developing and maintaining an ICT infrastructure for libraries

• Upgrading and expanding library collections

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• Upgrading staff capacity at libraries by appointing additional staff and implementing

programmes for library staff

• Providing basic equipment such as photo-copiers and audio-visual to libraries

• Improved service delivery at libraries was continued with the provision of public online access to the World Wide Web.

Access to services was improved with the appointment of additional staff at libraries, which makes itpossible to keep libraries open for long hours during the week and on Saturdays to meet community needs.

The digital environment in which libraries are operating is posing new demands for the design of library buildings which will be taken into account when designing new buildings over the MTEF period. Like-wise, the need for energy efficiency will also be factored in to library design, more so because power failures at libraries have a detrimental effect on service delivery in a digital environment.

The security risk at libraries is increasing with the provision of equipment such as computers; however the risks are mitigated with the provision of burglar alarms, security fences and electronic access con-trol systems. The need for physical security at libraries is increasing, especially where libraries are be-ing kept open after normal office hours and the safety of staff has to be guaranteed.

Libraries have 450 976 registered library users during the financial year 2013/14.

The Archive Services Unit renders services to governmental bodies, which include government depart-ments, municipalities and public entities. There is an electronic records management policy to address the challenges of data security and data integrity posed by a digital environment. Key collections are being digitalised to preserve the original documents and to improve access to records. To improve the quality of records management in government offices and mitigate the risks posed by a digital environ-ment to preservation of records, data security and data integrity, the Archives Services Unit is investi-gating the implementation


In terms of Schedule 5 of the Constitution of South Africa, sport and recreation is an exclusive Provincial Legislative competency.

Delivery of sport and recreation services at municipal level is a local authority function. However, due to demands of services as housing, roads, social development and health care facilities local author-ity have reduced their support for sport and recreation initiatives within communities. Even the 15% Municipal Infrastructure Grant dedicated to sport and recreation at municipal level is diverted to deliver other social needs than sport and recreation. The Chief Directorate has been addressing this challenge by providing provincial sport and recreation programmes to districts and local authorities and engaging with local authorities to ring fence the 15% Municipal Infrastructure Grant for sport development. It also developed recreational sport programmes focusing on mass participation and club development.

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The financial resources of the Chief Directorate at provincial level are stretched beyond its limits and, therefore, reducing its ability to deliver an effective and sustainable service.

2.2 Service Delivery Improvement Plan

The department has completed a service delivery improvement plan. The tables below highlight the service delivery plan and the achievements to date.

SERVICE DELIVERY IMPLEMENTATION PLAN: 2013/14 PROGRESS REPORT

Main services and standards

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

Teaching Arts in Schools

Arts and Culture Teachers and Learn-ers in Grade 8 in government schools

140 schools were beneficiaries of the programme

The number of schools and the fa-cilitators made pos-sible by the EPWP funding. Schools selected through District offices.

30 schools targeted for better focus and because of budget cuts

Number of schools cut to fit the budget, partners brought in to improve teaching stan-dards. Schools still being se-lected through District Offices

The target for this key service has been exceeded and the number of schools serviced stands at 66 by the end of the 2nd Quarter 2013. The increase in number is informed by a grow-ing interest by many schools to be included in the programme

To provide high performance sport sci-ence services and capacity building pro-grammes

Free State Sport Confederation

Sport Federations

National athletes

Provincial athletes

District & Local ath-letes

Sport councils

Schools Club

1 Outreach pro-gramme

To improve the per-formances of ath-letes and coaches by providing them with access to a comprehensive range of support programmes

2 Outreach programmes

To improve the performances of athletes and coaches by providing them with access to a comprehensive range of support programmes

No progress due to the fact that the turnaround strategy is still not approved to implement the outreach programme

The following support was provided to elite athletes and coaches:

Capacity building

Sport specific testing

Logistical support for competi-tions and tournaments (transport, accommodation, catering, etc)

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BathoPelearrangementswithbeneficiaries(Consultation,accessetc.)

Current/ Actual arrangements Desired Arrangements Actual Achievements

CONSULTATION Visual and Performing Arts: Meetings with com-munity stakeholders to establish arts and culture forums. Consultation is done through engage-ment with district Office of Education Department

ACCESS Invite crafters to display at market, organize venue, stands, etc. for market in collaboration with PACOFS Access for learners is through the school’s Art and Culture teachers

COURTESY Assist Performing and Visual artists and crafters to access investing in Culture funding. Regular interactions

OPENNESS AND TRANSPARENCY Visits to artists and crafters to determine needs; organized workshops. Selection criterion for schools was agreed upon with District Offices while selection of facilitators done from CV

Mid-month reports, monthly reports, quarterly reports to M&E Unit. Tar-gets are evaluated against APP ac-cording to race, gender and sport-ing codes

Implementation of Mobile sport science units in all districts, taking sport science to the people

Every unit equipped with customer care desk/register

Implementation of Mobile sport science units in all districts, taking sport science to the people

Reports are submitted regularly to the M&E Unit to report progress made

Sport Science Specific testing was im-plemented through the use of Mobile Sport Science Units in the districts. Particularly for clients who have no means of transport to FSSSI

Questionnaire used to improve the quality of services rendered. Bro-chures and booklets distributed.

Sport Science Specific testing was im-plemented through the use of Mobile Sport Science Units in the districts. Particularly for clients who have no means of transport to FSSSI

Service delivery information tool

Current/actual information tools Desired information tools Actual achievements

Cultural Affairs:

Emails, intranet, publications, pre-sentations, telephone, personal visits

Develop teaching manual for facilita-tors

Quarterly meetings to take place for reporting and sharing information

Constant communication with stakeholders

Sport and Recreation:

Brochures Booklets, Promotional Gym Wear, Corporate gifts. Ban-ners, teardrops, circulars via all stakeholders e.g. schools, hubs,

Priority towns are targeted and all schools in these towns to be targeted by FSSSI. Sport science to be taken to the communities

All schools are provided with bro-chures indicating services available at FSSSI

Questionnaires used to improve the quality of services rendered

Brochures and booklets distributed

Website is fully functional

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Complaints mechanism

Current/actual complaints mechanism Desired complaints mechanism Actual achievements

A specific person within Batho Pele Unit as well as the Communication Directorate is identified as contact persons to handle the complaints/compliments and to record them on the regis-ter. An operational plan on how to handle such is developed

Each Directorate must have a specific person that deals with complaints and refer them to the Batho Pele Office

Telephone complaints on service deliv-ery per telephone is handled within 7 working days and complex matters are handled by communications

2.3 Organisational environment

Administration

The programme provides the department with strategic leadership and management as well as overall administrative and performance oversight. The Programme consists of sub-programmes with the fol-lowing functions.

Internal Audit services

Manage and provide Professional Internal Audit Services by ensuring that compliance and performance take place as well as to conduct Specialized Audits

Security Management

Manage and monitor the provisioning of security management services Develop and implement security management policies, systems and procedures Monitor the adherence to implementation of information technology policies based on MISS Administer and monitor the implementation of security measures, including access control Provide staff vetting services and liaising with other security agencies

Strategic Planning, Monitoring and Evaluation

Ensure department achieves strategic goals

Ensure department mainstreams and meets performance targets

Provide support to department in development of strategic partnership

Communication, Marketing and Information Technology

Co-ordinate the organising of Commemorative Day celebrations

Branding of Department to be easily identified

Professional Communication Services to core programmes and projects to the department to increase public awareness

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Facilitate internal communication to ensure that departmental staff is informed of programmes and proj-ects

Efficient information processing and optimal usage of Information Technology

Financial, Supply Chain and Human Resource Management

To provide support services through the following:

Implement and monitor financial and management accounting procedures to ensure compliance with PFMA and other relevant financial prescripts

Introduce sound financial accounting processes

Implement effective supply chain management policies and maintaining an effective and efficient asset management system

Manage loss control effectively

Manage Infrastructure

Risk Management

Strategic Human Resources management and Development

Employee Relations and people management

Organizational Development and Design

Cultural Affairs

Cultural Affairs have two directorates which are the Arts and Culture Directorate and the Heritage, Mu-seum and Language Services Directorate.

Arts and Culture The directorate is responsible for overseeing and management of all activities related to the develop-

ment and promotion of arts and culture in the province.

The Arts and Culture Directorate consists of two sub-directorates:

• Performing and Visual Arts Sub-directorate

• Community Arts Centres.

The post of a Director for arts and culture is currently vacant.

Heritage, Museums and Language Services

The directorate is responsible to preserve, promote and exhibit the natural and cultural history and heri-tage of the inhabitants of the province.

This directorate consists of three sub-directorates:

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• Secretariat Services. The Secretariat Services supports Provincial Geographic Names Committee and Provincial Heritage Resource Authority Council

• Language Services. This sub-directorate consists of five units, which are Translation, Interpreting,Literature Development, Terminology and Multilingualism Promotion. It serves all provincial government depart-ments with translation, editing and interpreting on a daily basis. It is alsocharg ed with developing and implementing the provincial language policy. The challenge in this sub-programme is vacancies that could not be filled, thereby adversely affecting delivery of services. It has appointed interns to assist and those interns were absorbed in the structure of the sub-programme at the end of the financial year.

• Museum Services. Museum Services manages twelve provincial museums, which are: Military Mu-seum, Old Presidency Museum, Philippolis Museum, Bethulie Museum, Smithfield Museum, Boshof Museum, Heilbron Museum, Pioneer Museum, Glen Museum, Afrikaans Literature Museum, Sesotho Literature Museum and Basotho Cultural Village. Basotho Cultural Village is the only living heritage museum. Source documents are produced for future research and artefacts and photographic records are generated for future generations.


The Library and Archive Services Directorate consists of two Units which are Library Services and Archive Services.

The Library Services Unit consists of:

• Professional Support Services Sub-directorate, which is responsible to create an enabling environ-ment for the rendering of library and information services in the province, through library collection and specialized information services.

• Community Libraries is established per district and is responsible to ensure the effective planning,coordination and monitoring of community library services in the Free State.

Performance in the programme was challenged because of a high number of vacancies that could not be filled due to a moratorium on the filling of vacant posts.In terms of the Constitution,Schedule

5, the provision of library services is a provincial competence. At the moment the provision of library services is handled jointly by municipalities and the Department, a situation which constitutes an un-funded mandate for municipalities. The Executive Council took a resolution in 2011 that the Depart-ment must take full financial responsibility for the provision of library services, but the Department does not have funding to implement the resolution of EXCO. The National Treasury made funds available through the Community Library Conditional Grant to address the Schedule 5 issue and the grant will assist in fast tracking the provincialization of public library services from 2014/15.

The conditional grant for the recapitalisation of community libraries is still having an impact on the sup-port service component in the Department, especially Human Resource Management, IT Services, Finance and Supply Chain Management, but the effect is mitigated with the appointment of additional support staff with funds from the conditional grant for the administration of the grant. The conditional grant has improved co-operation with the National Department, National Library of South Africa and the National Council for Library and Information Services.

The re-classification of library materials as assets had an impact on the management of library mate-rial collections, and the Prolib library management system has to be amended to comply with require-ments set by National Treasury. The Programme is also planning to migrate from a bar code based system of asset management to an RFID (radio frequency identification) system, to improve the accu-racy, effectiveness and efficiency of stock counts. A grant was secured to implement the RFID system over the next two years.

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Archive Services Sub-directorate consists of

• Records management Section which is responsible to render records management services to governmental bodies.

• Archives Administration section which is responsible to manage archives at repositories by Provide document management services, provide community outreach programmes and Conduct

oral history research and programmes

The Archive Services Unit works closely with the National Archives as well as the Provincial Archives Council. The Free State Archives Service is well established and is often approached by other prov-inces for guidance on establishing and developing an archive service.

Due to the scarcity of qualified librarians, a bursary programme was started to attract more people to this field. A similar programme must be started in Archive Services where there is the same challenge of inadequate qualified staff. Two bursary holders qualified as librarians during 2013/14. The Archives Unit participates in the departmental internship programme and two interns were appointed in permanent

positions during 2013/14.


The Chief Directorate consists of four directorates with the following functions namely;

1. Management(OfficeoftheChiefDirector)

• To oversee effective management, coordination and efficient delivery of sport and recreation in the province

• Support the Free State Sport Confederation as the controlling body for organised sport in the Free State

2. Sport (Free State Sport Science Institute)

• To render high performance sport science and medical support services to: (1) improve provincial athlete’s performance, and (2) empower elite coaches’ with sport specific skills, technical as well as administrative knowledge

3. Recreation (Community Sport)

• To facilitate the development of multi-purpose sport and recreation facilities, provide sustainable recreation/mass participation programmes, assist with the establishment of structure thereby

creating opportunities to all sport communities across age spectra in order to live a healthy and physical active life style

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4. School Sport (Sport and Talent Development)

• To facilitate proper team delivery to inter-provincial schools competitions as well as promote active mass participation of all learners that will lead to the identification of talented athletes for a sustainable sport and recreation environment.

• The vacancy rate within the Chief Directorate and inadequate funding which result in the Chief Direc-torate relying heavily on conditional grants from Sport and Recreation South Africa and Public Works (EPWP) continues to have an adverse effect on service delivery.

• The Chief Directorate provides support to the Free State Sport Confederation as a controlling body of sport in the province, to the District Sport Councils and to the District Sport Academies by transferring funds and signing the service level agreement.

• These above structures assist the Chief Directorate in accelerating service delivery to its clients.

2.4 Key policy developments and legislative changes

Administration

• Continue to roll out Cultural Evenings to all higher education institutions across the country where there are Free State Provincial Government bursary holders

• Intake of seven graduates on internship programme

• Implement bar-coding of assets

Cultural Affairs

• Rolled out Arts in Schools programme to 120 schools around the province• Field Band Foundation to provide brass, dance and life skills training for young people from schools

in Thaba-Nchu and Botshabelo• Thabong Community Arts Centre continued to host the annual Disability Dance Competitions as one

of flagship programmes in the department• Launched the Provincial Language Policy• Presented drama productions based on Grade 12 set works; focus on one book, namely “Nothing

but the Truth”• Strings programme to be extended to Fezile Dabi district• Presented Spelling BEE and debates in collaboration with the Free State Department of Education• Commenced with Arts in Prisons programme in Fezile Dabi and Lejweleputswa districts, focusing on

performing arts, sewing and visual arts• Launched MACUFE After-care programme aimed at developing and improving skills of artists that

were identified through MACUFE auditions.• Embarked on the process of scaling down of museums in the province• Commenceed with a process of digitilizing museum artefacts to ensure that provincial museums are

interactive and reflect the demographics of the province

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• Declared Thomas Maphikela house and Winnie Mandela house as provincial heritage Sites, and the graves of Dr Moroka, Reverend Mahabane and The Wesleyan Church as national heritage sites

• Established section 97 committees for local and district municipalities on the processes of name change, according to legislation

Library and Archives Services

• The Department has started with the implementation of the EXCO Resolution that the Department must take full financial responsibility for the administration of public libraries. During 2013/14 Library services at 4 municipalities were provincialized and the process started at one municipality.Three municipalities were partially refunded for the administration of public libraries in their municipalities.In 2014/15 this process will be fast-tracked with funding from the Community Library Conditional Grant.

• Facilities, services and human resources were managed, monitored and maintained at 172 libraries.• To improve access to services, two new library services were established, namely at Jacobsdal where

a new building was completed and at Kholokoe Village where a service was established in a pre-fabri-cated building.The construction of a new library in Qibing, Wepener continued as well as the upgrade of the Bloemfontein Public Library. The upgrade of the Oppermansgronde Library was completed.

• Library collections were expanded and maintained with the procurement of 86 204 items of new ma-terial. The e-library service , allowing the borrowing of e-books are now well-established and it was expanded by providing wi-fi areas and tablet computers for downloading e-books at some libraries. This project will continue until all libraries have the benefit of wi-fi and mobile downloading equipment.

• All libraries in the Free State have IT equipment and internet connectivity which provides free public on line access to communities. The Free State made a significant contribution in bridging the digital divide by providing internet access and other digital services in remote rural areas.

• To promote a culture of reading, literacy and library use a variety of promotional projects were pre-sented, amongst others a spelling competition to improve children’s reading and spelling skills. More than 1 000 learners participated in the competition.Library week celebration attracted more than

13 000 participants.• Early Childhood development programmes were supported by the establishment of 8 toy library ser-

vices in rural areas. To date toy library services have been established at 43 libraries.• The Department is now fully compliant with the Treasury Instruction to manage library materials as

assets.• To ensure proper asset management, upgrading and maintaining security at library buildings with-

security fencing, electronic security systems and burglar alarm systems continued during 2013/14. Seven libraries were provided with electronic security systems bringing the total number of libraries provided with these systems to 60. Burglar alarms are monitored and maintained at 117 libraries.

• Two structures for consultation with stakeholders were established and are functional in the Archives Unit, namely the Provincial Archives Council and the Records Management Forum.

• To address imbalances in archival collections, the oral history programme continued with a focus on traditional leaders.


• Upscale of the construction of Seisa Ramabodu Stadium in Mangaung• Upgradedthe Sipho Mutsi Stadium• Upgraded the Fezile Dabi Stadium• Construction of proper football grounds for Dr. Cingo High School as part of Sport Focus School Pro-

gramme• Develop business plan for upgrading of Verkeerdevlei stadium• Construction of Tumahole Indoor Sport Centre• Construction of Sipho Mutsi Indoor Sport Centre

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• Upgrade of Laubscher Park Stadium • Upgrading of Ficksburg Stadium • Building of 2 children parks in Cornelia and Warden in partnership with Department of Rural Development • Leagues: partner with Department of Education & Social Development of hosting anti-gangsterism

sporting games. Further, through Arts and Culture events at affected towns • The rendering of high performance support services to SASCOC’s National Training Centre 3. STRATEGIC OUTCOME ORIENTED GOALS

To manage and promote sport and recreation development, arts and culture and to render library, information and archive services in the province

Strategic Goal

Administration

To render efficient, effective and economic support services by conducting the overall management and administrative support to the department

Cultural Affairs

The strategic objective for the programme is to ensure cultural diversity and advancement of artistic disciplines into viable industries, and accelerate the transformation of the country’s heritage landscape. The significant achievements for the programme are:

Departmental Terminology Booklet was launched

• Six names for renaming were submitted to National Office for endorsement which are Kroonstad to be renamed Maokeng, Petrus Steyn to be renamed Mamafubedu, Universitas Hospital to be renamed Albertina Sisulu Academic Hospital, Bloemfontein International Airport was renamed Bram Fisher International Airport, Bloemfontein Hospital to be renamed Dr Matlhape Hospital and

Trompsburg Hospital to be renamed Albert Nzula Hospital • Celebrated inaugural International Museum Day in Smithfield • MACUFE 2013 was successfully hosted with a total attendance figure which reached 74 133 (Main

Festival – number of tickets sold: 19028, Boxing Tournament: 306, Gospel Festival: 3 367, Macufe Indoor Jazz: 2 596, Macufe Divas Concert: 3 900, Macufe Comedy: 2 355, Macufe Rock fes-

tival:1 150, Umoja: 2 431, The Plot: 2 000, Macufe Cup: 35 000, Macufe Corporate Village: 2 000 • 50 craft projects have been selected to be part of the MACUFE Arts and Craft programme • The Arts in Schools Programme was rolled out in the province


The strategic objective for the programme is to ensure access to reading, learning and information through the provision of public library service and archive and records management services. The significant achievements are:

• Facilities, services and human resources were managed, monitored and maintained at 172 libraries throughout the Province. Public libraries contribute to the provision of sustainable social infrastruture in especially rural communities and support quality basic education by providing access to reading and learning materials to learners. Early childhood development, tertiary education and adult educa-tion and training (AET) are also supported by public library services.

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• To improve access to services, two new library services were established, namely at Jacobsdal where a new building was completed and at Kholokoe Village where a service was established in a pre-fabricated building. The construction of a new library in Qibing, Wepener continued, as well as the upgrade of the Bloemfontein Public Library. The upgrade of the Oppermansgronde Library was completed.

• Library collections were expanded and maintained with the procurement of 86 204 items of new material. The e-library service , allowing the borrowing of e-books are now well-established and it was expanded by providing Wi-Fi areas and tablet computers for downloading e-books at some

libraries. This project will continue until all libraries have the benefit of Wi-Fi and mobile download-ing equipment.

• All libraries in the Free State have IT equipment and internet connectivity which provides free pub-lic on line access to communities. The Free State made a significant contribution in bridging the digital divide by providing internet access and other digital services, such as word processing, in remote rural areas.

• To promote a culture of reading, literacy and library use, a variety of promotional projects were presented, amongst others a spelling competition to improve children’s reading and spelling skills.

Library Week, celebrated at libraries throughout the Province during March 2014, attracted more than 13 000 participants. More than 450 000 people are registered as regular library users and

libraries received approximately 1.2 million visitors during the year.• Early Childhood Development programmes were supported by the establishment of 8 toy library services in rural areas. To date toy library services have been established at 43 libraries.• To improve the quality of service delivery and four capacity building programmes, attended by 274

library workers, were presented during the year. Sixteen library workers are currently participating in bursary programme for studies in library and information science and two of the bursary holders successfully completed their studies during 2013/14.

• The Department is now fully compliant with the Treasury Instruction to manage library materials as assets.

• To ensure proper asset management, upgrading and maintaining security at library buildings with security fencing, electronic security systems and burglar alarm systems continued during 2013/14.

Seven libraries were provided with electronic security systems bringing the total number of libraries with electronic security systems to 60. Burglar alarms are monitored and maintained at 117 librar-ies.

• Two structures for consultation with stakeholders were established and are functional in the Archives Unit, namely the Provincial Archives Council and the Records Management Forum.• To address imbalances in archival collections, the oral history programme continued with a focus

on traditional leaders.• Sixty-two officials were trained in records management during 2013/14.


• The strategic objective for the programme is to support Free State citizens whom are and want to become actively involved in sport and recreation.

Thesignificantachievementsare:

• Badminton: The HP Badminton athletes participated in Competitions during the year and won several medals (22 Gold, 16 Silver and 35 Bronze medals). • Boxing: The HP Boxers participated in 2 local tournaments and won 11 Gold-, 4 Silver- and 2

Bronze medals. The HP Boxers participated in the SANABO senior championships from 3-6 July in Johannesburg. The team obtained position 5 and won a gold medal, 3 silver and 3 bronze medals.

8 HP boxers competed at the FS Junior Championships on 10 August in Kroonstad. They won 5 Gold medals 2 Silver medals and 1 Bronze medal.

42



• Judo: The HP Judokas participated in 1 National Tournament and won 2 Gold-, 2 Silver- and 1 Bronze medal. The National Judo Federation of Botswana and FS Judo, Botswana Judokas trained on a regular basis with the HP Judokas at the FSSSI. 2 HP Judokas was selected to compete at the Africa Senior Championships in Mozambique during April.

• Karate: The HP Karateka’s participated in 2 National Tournaments and won medals! (22 Gold-, 11 Silver- and 11 Bronze medals). 16 Athletes initially qualified for the Africa Zone 6, of which 12 athletes

were selected at the end by KSA to represent South Africa. • Sport for athletes with disabilities: 2 HP Para Tri-athletes was selected in the SA Team and are busy

with intensive training and preparation at the FSSSI for the World Triathlon Championships in September this year. 5 HP athletes were also selected for the SA Team that will-

take part in the IPC World Athletics Championships in 2013. • Sport against crime activities took place and youth month activities were held in different districts. • Free State participated in the National Golden Games held October in Boksburg • OR Tambo Games was held in October 2013 • Big Walk was held in October 2013 • Boxing Minister’s Outreach Programme was held in October 2013 • 16 Days of Activism was held in Xhariep district in December 2013 • A Memorandum of Understanding was signed between SRSA and the Lesotho Ministry of Youth,

Gender, Sport and Recreation on the implementation of sport and recreation programmes. Free State is the implementing agent of some of the deliverables.

• Tryon Mondi, a learner from Brebner High School in Bloemfontein was selected to play for an English First Division Club, Bolton Wanderers Football Club.

• Refiloe Ranku, a learner from Matla Public School in Bloemfontein received Ministerial Bursary (Min-ister Fikile Mbalula Bursary) as an outstanding learner at the South African National Schools Cham-pionships.

• Hosted CHAN football tournament in conjunction with the Mangaung Metro Municipality on1 1 Janu-ary to 1st February 2014.

4. PERFORMANCE INFORMATION BY PROGRAMME

4.1 Programme 1: Administration

Purpose of the Programme

This programme provides the department with strategic leadership from the Office of the MEC,management as well as administrative services from the Office of the HOD. The purpose is to conduct the overall management and administrative support of the department.

This programme comprises of two sub-programmes to enable delivery on the purpose, which are:

Office of the MEC Corporate Services

• OfficeoftheMEC

This sub-programme’s purpose is to provide administrative, client liaison and support services to the Member of Executive Council and to enable compliance with various legislative requirements.

• CorporateServices

The purpose of this sub-programme is to provide overall administration of the department which in-cludes financial management, human resource management and development, registry,messenger services, legal administration and transport services.

43



Sub-programme expenditure

2013/2014 2012/2013

Sub-Programme name Final Appropriation Actual Ex-penditure

(Over)/Under Expen-diture

Final Appro-priation

Actual Expen-diture

(Over)/Under Expendi-ture

Administration

Office of the MEC 35 180 35 163

17 35 054 34 959

95

Corporate Services 32 874 32 808

66 32 278 32 277

1

TOTAL 68 054 67 971

83 67 332 67 236

96

4.2 Programme 2: Cultural Affairs


The programme’s purpose is to transform, develop, render and manage arts, culture, heritage and lan-guage services in the province through:

• Promotion and coordination of performing arts services to ensure cultural diversity and advancement of artistic discipline into viable industries

• Promotion and coordination of visual and creative arts (craft services) to ensure the creation of jobs and sustainable livelihoods

• Facilitation and administration of declared provincial heritage sites• Render museum and heritage services to promote public awareness and create opportunities for learn-

ing• Support the Provincial Geographic Names Committee and Provincial Heritage Resource Authority to

drive social cohesion and nation building• Render language development services to ensure that language profiles and constitutional rights of the

previously marginalised languages are entrenched

This programme comprises of five sub-programmes to enable delivery on the purpose, which are:

• Management • Arts and Culture • Museums Services • Heritage Resource Services • Language Services

44



Sub-Programme 2.1: Management

The purpose of this sub-programme is to provide strategic managerial direction to programme 2:

Cultural Affairs

Sub-Programme 2.2: Arts and Culture

The purpose of this sub-programme is to promote respect for cultural diversity and the advancement of the artistic discipline into viable industries by promoting and coordinating performing, visual and creative arts services for people development and job creation

Sub-Programme2.3: Museums Services

The purpose of this sub-programme is to render provincial and local museum services in terms of Ordinance 8 of 1975, which is the Provincial Museums Framework

Sub-Programme 2.4: Heritage Resource Authority

The purpose of this sub-programme is to standardise geographic names and to protect and preserve heritage resources of the province

Sub-Programme 2.5: Language Services

The purpose of this sub-programme is to ensure language development and promotion of previously mar-ginalised languages, to ensure that the Constitutional rights of the people are met by the utilisation of the main languages of the province.

Strategicobjectives

Departmen-tal receipts

2013/2014 2012/2013

Estimate ActualAmount

Collected


Estimate ActualAmount

Collected


R’000 R’000 R’000 R’000 R’000 R’000Sale of goods and services other than capital assets

10 058 9 508 (550) 9 198 8 813 (385)

Transfers received 3 391 5 891 2 500 6 020 6 020 -Fines, penal-ties and forfeits

23 32 9 22 29 7

Interests, dividends and rent on land

102 96 (6) 97 454 357

Sale of capital assets 8 4 (4) 8 3 (5)Financial transac-tions in assets and liabilities

261 198 (63) 214 536 322

Total 13 843 15 729 1 886 15 559 15 855 296

45



Performance indicators

Sub-programme 2.2: Arts and Culture

Performance In-dicator

Actual Achieve-ment 2012/2013

Planned Target2013/2014

Actual Achievement2013/2014

Deviation from planned tar-get to Actual Achievement for 2013/2014

Comment on deviations

Standardised performance indicators2.2.1 Number of

structures supported

1 1 1 0%

2.2.2 Number of significant days hosted

2 2 2 0%

2.2.3 Number of artists trained

499 424 2 450 477.83% More artists were interested in our training and more were accommo-dated

Non-standardised performance indicators2.2.4 Number

of schools targeted for arts in schools

143 30 368 1126.66% More schools showed interest on this programme and more were accommo-dated

2.2.5 Number of workshops presented

New indicator 10 25 150% Due to requests from municipalities to conduct workshops in their town, more workshops were organised

2.2.6 Number of cultural activities hosted

1 4 4 0%

2.2.7 Number of district festi-vals held

1 5 5 0%

Footnote

Number of artists trained

Initially we planned for 424 to be trained because we only considered the MUSICON registered learn-ers and the Mangaung Strings Programme. The number of 424 was an appropriate and realistic number presented by these two sub-programmes offered by the MUSICON. After we started implementing other units at MUSICON and at the Mmabana Arts & Culture Centre also indicated that they facilitate training and should be included, otherwise the Arts & Culture Directorate would under-report. We then decided to include all programmes of MUSICON and of the Mmabana Arts & Culture Centre in Thaba Nchu. This escalated the figure. We did not spend additional funds on this as this is already budgeted for and in prog-ress. We merely reported on current activities that we did not consider in previous financial years.

46



Number of schools targeted for arts in schools

Initially we planned for 30 schools under the EPWP funded Arts in Schools Programme. At the end we targeted 32 schools with this initiative. After we started implementing other units at MUSICON and at the Mmabana Arts & Culture Centre also indicated that they facilitate arts in schools, just in other disciplines like music, and should be included, otherwise the Arts & Culture Directorate would under-report. We then decided to include all schools services by the MUSICON and the Mmabana Arts & Culture Centre in Thaba Nchu.

This escalated the figure. We did not spend additional funds on this as this is already budgeted for and in progress. We merely reported on current activities that we did not consider in previous financial years.

Number of workshops presented

Initially we planned for 10 workshops as we believed that two workshops per district for the year were suf-ficient. After we started implementing artists and communities where we did talent identification requested basic workshops in arts administration, how to generate contracts, how to deal with promoters, how to facilitate invitations to major arts festivals like MACUFE, Vryfees, Cherry Jazz Festival and the National Festival in Grahamstown. Many of the workshops are verbal or can be done via powerpoint presentations in areas where people need to be informed but where they cannot read and/or write. This escalated the figure.

47



Sub-programme 2.3: Museum Services

Performance Indicator



Actual Achieve-ment2013/2014

Deviation from planned target to Ac-tual Achieve-ment for 2013/2014


Standardised performance indicators2.3.1 Number of

people visit-ing the facili-ties

43 936 20 000 33 668 68.34% The marketing of our facilities contrib-uted to large number of visitors being recorded

2.3.2 Number of brochures and publica-tions distrib-uted

12 341 12 000 13 497 12.47% More events were held and more bro-chures had to be procured for distribu-tion purposes

Non-standardised performance indicators2.3.3 Number of

museums managed by the depart-ment

11 11 11 0%

2.3.4 Number of facilities de-veloped

2 1 1 0%

2.3.5 Number of exhibitions staged

37 12 45 275% The demands from other department for us to exhibit in their events resulted in high number of exhibitions staged

2.3.6 Number of outreach programmes conducted

New indicator 12 42 250% Requests from municipalities to con-duct outreach in their towns resulted in large number of outreach being re-corded

2.3.7 Number of artefacts digi-talized

New indicator 200 495 147.5% The assistance from IT unit contributed in the acceleration of this process

2.3.8 Number of students received for experiential training

New indicator 4 2 (50%) Only two interns were received from the department of premier than four as requested

48



Sub-programme 2.4: Heritage Resource Services

Performance Indicator




Devia-tion from planned target to Ac-tual Achieve-ment for 2013/2014


Non-standardised performance indicators2.4.1 Number of

programmes promoting cultural tour-ism

11 5 7 40% The need to raise awareness about pres-ervation of heritage resources compelled department to exceed its target

2.4.2 Number of heritage sites provisionally declared

12 5 7 40% This indicator depends of applications from members of the public and more ap-plications were received than expected

2.4.3 Number of geographic names rec-ommended

7 10 9 (10%) This indicator depends of applications from members of the public and more ap-plications were received than expected

2.4.4 Number of SLA’s signed

1 1 1 0%

Strategy to overcome areas of under performance

Request to fill critical posts will be done and adequate staff will ensure underperformance is addressed. Benchmarking with other provinces will be conducted so that we do not lose competent officials to other provinces that pay better salaries.

Changes to planned targets

No changes were made to planned indicators and targets during the year.

49




2013/2014 2012/2013Sub- Programme

NameFinal

AppropriationActual

Expenditure


Final Appropriation

ActualExpenditure


R’000 R’000 R’000 R’000 R’000 R’000Management

432 432 - 1 153 1 153

- Arts and Culture

82 154 82 132

22 87 197 87 196

1 Museum Service

37 330 37 329

1 53 287 53 287

- Heritage Service

3 839 3 838

1 3 309 3 309

- Language and Trans-lation service 3 654 3 569

85 2 753 2 753

-

Total 127 409 127 300 109 147 699 147 698

1

4.3 Programme 3: Library and Archive Services


The purpose of the programme is the development, transformation and promotion of sustainable library and archive services through:

• The provision of library and information services to communities

• The provision of technical and professional support services to community libraries

• The promotion of a culture of reading and lifelong learning

• Rendering of records management services to governmental bodies

• Management of archival records at archive repositories

This programme consists of three sub-programmes which are:

• Management

• Library Services

• Archive Services

50



Sub-programme 3.1: Management

The purpose of this sub-programme is to provide strategic and management direction to the programme through:

• Coordination of strategic planning

• Management and coordination of programmes

• Monitoring and evaluation of and reporting on programmes

• Development and implementation of policies and standards

• Provision of administrative support services

Sub-programme 3.2: Library Services

The purpose of this sub-programme is to provide library services which provide access to information, reading and learning resources and promote a culture of reading and lifelong learning through:

• The provision of professional and technical support services to affiliated libraries which include:

- Collection management services

- Specialised information services

- Development services

• The provision and maintenance of library infrastructure which includes building and ICT

• Managing and monitoring services at affiliated libraries

• The provision of workplace training and support to library staff

Sub-programme 3.3: Archive Services

The purpose of this sub-programme is to provide records management and archive services which will ensure:

• Proper records management practices at governmental offices

• Accountable management of archival records at archives repositories

51



Strategicobjectives

Programme 3: Library and Archive Services

Strategicobjectives Actual Achieve-ment 2012/13



Devia-tion from planned target to Actual Achieve-ment for 2013/2014


Provision of library and in-formation services which are free, equitable and accessi-ble, rendered according to the different information, reading and learning needs of people and which promote a culture of reading, library use and lifelong learning

464 855 454 811 485 285 6.7% More library materials than planned were procured because of additional funds becoming available, and more people than foreseen regis-tered as library users

Render archival and record management services which will provide for: -The acquisition, preservation and documentation of public and non-public records of na-tional/provincial significance-Proper management and care of public records-Equitable access and use of archives

7 591 5 700 5 952 4.42% More services than planned for were rendered on request of gov-ernmental bodies

52



Performance indicators

Sub-programme 3.2: Library Services

Performance Indicator Actual Achievement 2012/2013



Deviation from planned target to Actual Achievement for 2013/2014


Standardised performance indicators3.2.1 Number of new

library material procured

26 215 21 000 33 491 59.48% R1million originally earmarked for library materials for the Department of Education was made available to the pro-gramme to procure library ma-terials for public libraries

3.2.2 Number of moni-toring visits to public libraries

532 590 604 2.37% Additional visits could be done because of a vacancy filled sooner than expected

Non-standardised performance indicators3.2.3 Number of ca-

pacity building programmed provided to pub-lic library staff

2 2 2 0%

3.2.4 Number of li-brary workers attending capac-ity building pro-gramme

219 210 203 (3.33%) Officials who registered for the Provincial Capacity Building Programme could not attend due to personal circumstances

3.2.5 Number of pro-motional projects presented

5 3 3 0%

3.2.6 Number of reg-istered library users

435 382 433 000 450 976 4.15% More people than estimated registered as library users

3.2.7 Number of toy libraries estab-lished

6 6 6 0%

Footnote

The target is calculated as 1% increase on the previous year’s figure. When the final figure of 2012/13 became known the target for 2013/14 was not adjusted to 439 000 in the APP.

53



Sub-programme 3.3: Archive Services






Non-Standardised performance indicators3.3.1 Number of records

classification systems approved

11 10 11 10% The Mangaung Metro submitted an urgent request for approval which did not form part of the original plan.

3.3.2 Number of Pro-grammes of Action with identified coun-tries

17 10 12 20% Two governmental bodies, namely SASSA and the Depart-ment of Education, requested in-spections which did not form part of the original plan

3.3.3 Number of pro-grammes success-fully implemented using sport as a mechanism for achieving peace and development

69 60 62 3.33% More officials than planned for attended training courses in the 2nd and 3rd quarter. However, in the 4th quarter, 8 officials did not attend as planned because the FSDC (FS Development Corpo-ration) cancelled the registration of its officials.

3.3.4 Number of aware-ness and promotional projects/programmes rolled out to commu-nities

1 1 1 0%

Non-standardised performance indicators3.3.5 Number of records

appraisals done9 5 6 20% An additional appraisal was done

on request of the Dept. of Educa-tion

3.3.6 Number of oral his-tory programmes conducted

2 1 1 0% The target was exceeded be-cause records transferred to the Archives Repository during the course of the year had to be re-stored before they could be made available for use by researchers

3.3.7 Number of docu-ments restored

432 600 842 40.33% The target was exceeded be-cause records transferred to the Archives Repository during the course of the year had to be re-stored before they could be made available for use by researchers

3.3.8 Number of groups of documents digitalized

5 174 2 4 100% The target was exceeded be-cause records transferred to the Archives Repository had to be digitized before they could be made available to researchers

3.3.9 Number of disposal authorities issued

New indicator 5 7 40% Additional disposal authorities were issued on request of gov-ernmental bodies

3.3.10 New indicator 5 000 5 000 0%3.3.11 New indicator 4 4 0%3.3.12 New indicator 2 2 0%

54




Department should provide the strategies to address under performance.




2013/2014 2013/2014Sub- Programme Name

Final Appropria-tion

Actual

Expendi-ture


Final Appropriation

Actual

Expenditure



4 024 4 024 - 3 663 3 663

- Library services 112 786 106 603 6 183 96 355 91 505 4 850 Archive services

5 275 5 275 - 4 080 4 080

- Total 122 085 115 902 6 183 104 098 99 248 4 850

4.4 Programme 4: Sport and Recreation

The purpose of this programme is to improve the quality of life of all South Africans through the develop-ment, transformation and promotion of sustainable sport and recreation programmes that will lead to iden-tification, increased mass participation and global competitiveness of sport persons.

Service rendered by this programme are to:

• Oversee effective management, coordination and efficient delivery of sport and recreation in the province • Provide high performance sport science services and capacity building programmes that will improve

the performance of athletes and empower coaches’ sport specific skills, technical and administrative knowledge at all levels of the sport development continuum to achieve excellence in sport.

• Facilitate the development of multi-purpose sport and recreation facilities, provide sustainable recre-ation/mass participation programmes, assist with the establishment of structures thereby creating op-portunities to all sport communities across age spectra in order to live a healthy and physical active live style

• Facilitate proper team delivery to inter-provincial schools competitions as well as promote active mass participation of all learners that will lead to the identification of talented athletes for a

sustainable sport and recreation environment. • Support the Free State Sport Confederation as the controlling body for organised sport in the Free

State.

55



The programme consists of four sub-programmes with the following functions:

• Management (Office of the Chief Directorate Sport and Recreation) • Sport (Free State Sport Science Institute) • Recreation (Community Sport) • School Sport (Sport and Talent Development)

Sub-programme 4.1: Management

The purpose of this sub-programme is to provide operational support to all service delivery components of the programme. The functions are:

• Manage and control all administrative activities in the Office of the Chief Director • Manage monitoring, evaluation and reporting • Manage and maintain the Chief Directorate Sport and Recreation facility • Manage sport infrastructure projects Sub-programme 4.2: Sport

The purpose of this sub-programme is to provide high performance sport science services and capacity building programmes that support the performance of athletes and empower coaches’ sport specific skills, technical and administrative knowledge within the sport development continuum to achieve excellence in sport. The functions are:

• To implement the Sport Science Outreach Programme – “Taking Sport Science to the Community” • To provide specialized sport science, sport nutritional, conditional and injury rehabilitation support programme to elite athletes • To provide high performance capacity building and training programmes to athletes and coaches • To support the Free State Sport Confederation.

Sub-programme 4.3: Recreation

The purpose of this sub-programme is to deliver provincial mass participation and recreational sport programmes. The functions are:

• Provide institutional support services to civil society structures • Management of recreation and mass participation programmes • Audit community sport and recreation facilities and maintain data-base thereof • Coordinate and support club development programme • Coordinate community based capacity building programmes

Sub-programme 4.4: School Sport

The purpose of this sub-programme is to assist with the development of sport talent and successful delivery of provincial school sport teams to inter-provincial school sport competitions. The functions are:

• Support the rollout of school sport leagues • Support school sport structures • Support the capacity building programmes for educators • Facilitate talent identification and development, including the management of district talent development centres • Ensure successful delivery of school sport teams to all national and international school sport competitions • Support to sport focus schools

56



Strategicobjectives

Programme 4: Sport and Recreation

Strategicobjectives Actual Achieve-ment 2012/2013



Deviation from planned target to Ac-tual Achieve-ment for 2013/2014


To provide sport management func-tions, transport and administration

- 7 6 14.28% Reconciliation challenge was planned for the month of De-cember 2013. However, due to the CHAN tournament, the Free State Stadium was not available and the Recon-ciliation Challenge had to be postponed indefinitely.

To identify and develop talented ath-letes through the implementation of a structures system

- 6 6 0%

To improve the performances of ath-letes and coaches by providing them with access to a comprehensive range of support programmes

- 2 1 (50%) The turnaround strategy was not approved to implement one of the programmes (i.e. Outreach programme)

To integrate the development of South African sport at provincial and local lev-els through Sports Councils

- 1 1 0%

To empower the sport and recre-ation sector with relevant information through a well-equipped Sports Infor-mation Centre

- 15 15 0%

To empower volunteers to adequately support the South African sports sys-tem

- 1 1 0%

To ensure that participation in sport and recreation activities is conducted in an environmentally sustainable manner and to use sport as a tool for commu-nicating environmental messages and encouraging actions to clean up the environment

- 4 4 0%

To capitalize on the numerous benefits derived from participating in sport and recreation as a mechanism towards achieving and supporting the priorities of National Government

- 2 2 0%

To maximize access to sport, recreation and physical education in every school in South Africa

- 800 800 0%

To empower the sport and recreation sector with relevant information through a well-equipped sports information cen-tre

- 2 2 0%

To ensure that participation in sport and recreation activities is conducted in an environmentally sustainable manner and to use sport as a tool for commu-nicating environmental messages and encouraging actions to clean up the environment

- 806 806 0%

To capitalize on the numerous benefits derived from participating in sport and recreation as a mechanism towards achieving and supporting the priorities of National Government

- 3 3 0%

57



Performance indicatorsSub-programme 4.1: Management





Comment on devia-tions

Non-Standardised performance indicators4.1.1 Number of relevant

information provided to sport and recre-ation sector by Chief Directors Office

New indicator 3 3 0%

4.1.2 Number of Pro-grammes of Action with identified coun-tries


4.1.3 Number of pro-grammes success-fully implemented using sport as a mechanism for achieving peace and development

New indicator 1 0 (100)% Reconciliation Chal-lenge was planned for the month of December 2013. However, due to CHAN tournament, the Free State Stadium was not available and the Reconciliation Challenge had to be postponed indefinitely

4.1.4 Number of special sport events acknowl-edged as “environ-mentally friendly”

New indicator 1 1

58



Sub-programme 4.2: Sport






Non-Standardised performance indicators4.2.1 Number of sustain-

able formal talent identification pro-grammes imple-mented

6 6 0%

4.2.2 Number of sup-port programmes to improve the perfor-mance of athletes and coaches

2 1 5 0% The turnaround strategy was not approved to im-plement one of the pro-grammes (i.e. Outreach programme

4.2.3 Number of functional provincial Sport Coun-cils established

1 1 0%

4.2.4 Number of research and modelling inter-ventions made to improve and facilitate strategic and opera-tional decisions mak-ing within sport

2 0 (100%) Research documents were compiled, but due to budget constraints, it could not be completed

4.2.5 Number of recent resources secured and distributed to the sport sector

13 13 0%

4.2.6 Number of Interna-tional workshops or-ganised

1 0 Arrangements were in place with BLOSO (Flemish Sport Federa-tion) to assist with an international coach’s workshop in January 2014. However, BLOSO cancelled the workshop on short notice due to unforeseen commit-ments from their side

59



Sub-programme 4.3: Recreation






Non-Standardised performance indicators4.3.1 Number of sporting

events acknowledged as environmentally friendly


4.3.2 Number of awareness campaign actioned using sport as a tool for communicating environ-mental message


4.3.3 Number of projects in support of government priorities








Non-Standardised performance indicators4.4.1 Number of schools

with school sport pro-grammes


4.4.2 Number of recent re-sources secured and distributed to the sport sector


4.4.3 Num ber of awareness campaigns actioned using sport as tool for communicating environ-mental messages


4.4.4 Number of schools im-plementing anti-doping awareness campaign


4.4.5 Number of projects in support of government priorities


60




Department’s should provide the strategies to address under performance.




2013/2014 2012/2013Sub- Pro-gramme Name

Final Appropria-tion

Actual

Expenditure


Final Appropriation

Actual

Expendi-ture



2 327 2 196

131 1 890 1 890 - Sport

171 310 168 789 2 521 78 905 76 134 2 771 Recreation

30 001 30 001

- 27 876 27 876 - School Sport

29 713 29 704

9 25 257 25 255 2 Total

233 351 230 690 2 661 133 928 131 155 2 773

5. TRANSFER PAYMENTS

5.1. Transfer payments to public entities

There were no transfer payments to public entities during the year under review.

61



5.2. Transfer payments to all organisations other than public entities

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

Name of transferee Type of or-ganisation

Purpose for which funds were used

Did the dept comply with 38(1)(j)ofthePFMA?

Amount transferred (R’000)

Amount spent by entity

Reasons for the funds unspent by the entity

Pan South African Lan-guage Board (PANSALB)

Non profit organisation

Promotion of FS languages

Yes 200 200

FS Geographical Names Committee (PGNC)


Consultation and renaming of streets

Yes 1 191 1 191

FS Provincial Arts and Culture Council (PACC)


Promotion of arts and culture

Creating job opportu-nities through Arts in Schools

Yes

Yes

1 831

315

1 831

315

Provincial Heritage Re-source Authority


Preservation of FS heritage

Yes 500 500

FS Sport Confederation Non profit organisation

Coordination of all major sport bodies

Yes 23 356 23 347 Only R9 000 was unspent

NPI FS Arts and Culture Association


Support to artists Yes 200 200

VRYFEES Non profit organisation

Support Afrikaans performing culture

Yes 200 200

Bloemfontein City Or-chestra


Support and promote orchestra music

Yes 70 70

The transfer and subsidies policy of the department is being implemented to ensure that all conditions of transfers are monitored such as:

• regular reporting by the entities

• visits to the entities by the Programme

• adequate financial management systems in place

6. CONDITIONAL GRANTS

6.1. Conditional grants and earmarked funds paid

N one

62



6.2 Conditional grants and earmarked funds received

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

Conditional Grant 1: EPWP Arts and CraftsProgramme

Department who transferred the grant National Department of Public Works

Purpose of the grantTo create job opportunities in the environmental and culture sector

Expected outputs of the grant26 job opportunities created

Actual outputs achieved25 job opportunities created

Amount per amended DORAR550 000

Amount received (R’000)R550 000

Reasons if amount as per DORA was not received

N/A

Amount spent by the department (R’000)R550 000

Reasons for the funds unspent by the entity

N/A

Reasons for deviations on performanceN/A

Measures taken to improve performanceMonthly and quarterly reports

Monitoring mechanism by the receiving department

Monthly and quarterly reports

63



Conditional Grant 2: Community Library Conditional Grant

Department who transferred the grant Arts and Culture

Purpose of the grantTo transform rural and urban library infrastructure,, facilities and services primarily targeting previously disadvantaged communities services primarily, primarily targeting previously disadvantaged communities

Expected outputs of the grant See Table Below

Actual outputs achieved See Table Below

Amount per amended DORA R65 586 000-00

Amount received (R’000) R65 586 000-00

Reasons if amount as per DORA was not received N/A

Amount spent by the department (R’000) R59 425 437-00

Reasons for the funds unspent by the entity Delays with the implementation of infrastructure projects

Reasons for deviations on perfor-mance Delays with the implementation of infrastructure projects

Measures taken to improve perfor-mance

Appointment of Infrastructure Manager. Outsourcing project management to a CPM

Monitoring mechanism by the receiv-ing department Monthly monitoring visits and review of progress with projects

64



Sub-programme Community Libraries

Performance Indicator Actual Achievement

2012/2013

Planned Target

2013/2014

Actual Achieve-

ment2013/2014

Devia-tion from planned target to Actual

Achieve-ment for

2013/2014


3.4.1 Number of meetings of Provincial Library Forum

6 5 13 160% Additional meetings were held to plan for the provincialization of library services after funds were made available on for this purpose

3.4.2 Number of new library facilities planned

- - 0 0%

3.4.3 Number of new library facilities un-der construction

Planning for three libraries completed but

construction did not start

3 1 (66.67%) Delays were experienced with the appointment of 2 contractors

3.4.4 Number of buildings upgraded - 1 2 100% 1 Project (Oppermansgronde) were carried over from the previ-ous year

3.4.5 Number of buildings where alarm systems are provided and main-tained

116 117 117 0%

3.4.6 Number of buildings provided with security fences

- - 0 0%

3.4.7 Number of libraries provided with electronic security gates

- - 5 100% Savings on the Clarens infrastruc-ture project and maintenance of equipment were used to procure security gates for 5 Libraries

33.4.8 Number of libraries where ICT is maintained

169 171 171 0%

3.4.9 Number of libraries where photo-copiers are provided and main-tained

135 141 141 0%

3.4.10 Number of libraries provided with furniture

- - 0 0%

3.4.11 Number of new library materials procured

20 210 25 000(Target ad-justed after

additional funds were

received)

52 713 110.85% Savings on compensation and maintenance of equipment were used to procure additional library materials

3.4.12 Number of capacity building programmes presented to public library staff

3 2 2 0%

3.4.13 Number of staff attending capacity building programmes

61 70 70 0%

3.4.14 Number of bursaries awarded and continued

20 21 16 (23.81%) 5 Bursaries were suspended based on examination results.

3.4.15 Number of additional staff ap-pointed and maintained at public libraries

142 159 154 (3.1%) Delays were experienced with ap-pointment of staff due to verifica-tion process

3.4.16 Number of municipalities assisted financially with administration of libraries

2 0 0 0%

3.4.17 Number of libraries assisted with facility management

New indicator 5 14 180% More libraries than planned could be assisted with savings on equip-ment

3.4.18 Number of staff appointed and maintained at departmental level

18 18 16 (11.11%) 2 vacancies occurred towards the end of the financial year and could not be filled before 31 March 2014

3.4.19 Number of projects to promote a culture of reading


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Conditional Grant 3: Sport and Recreation

Department/ Municipality to whom the grant has been transferred Free State Department of Sport, Arts, Culture and Recreation

Purpose of the grantTo facilitate sport participation within communities and schools through selected sport and recreation activities, empowerment of communities and schools in conjunction with stakeholders and development of communities through sport

Expected outputs of the grantIncreased and sustained participation in the sport and recreation development con-tinuum (Citizens access sport and recreation activities)

Actual outputs achieved Increased and sustained participation in the sport and recreation development con-tinuum (Citizens access sport and recreation activities)

Amount per amended DORA R38,832,000

Amount transferred (R’000) R38,832,000

Reasons if amount as per DORA not transferred NA

Amount spent by the department/ mu-nicipality (R’000) 100%

Reasons for the funds unspent by the entity N/A

Monitoring mechanism by the transfer-ring department

Quarterly performance reports were submitted to Provincial Treasury and Sport and Rec-reation South African (National Department)

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Sub-programme 4.3: Community Sport




Deviation from planned tar-get to Actual Achievement for 2013/2014


Non-Standardised performance indicators4.3.1 Number of youth at-

tending the annual youth camp

New indicator 250 215 (14%) Youth Camp held on 22-28 September at Phillip Saunders with 215 partici-pants. Some participants withdrew at the last minute

4.3.2 Number of community sport and recreation programmes

6 23 23 0%

4.3.3 Number of people participating in sport and recreation pro-grammes

20 418 25 000 25 000 0%

4.3.4 Number of tourna-ments and leagues stages to foster club development

14 4 4 0%

4.3.5 Number of affiliated functional clubs per sporting code sup-ported

246 150 150 0%

4.3.6 Number of provincial programmes imple-mented


4.3.7 Number of athletes supported through an athlete support pro-gramme

New indicator 220 364 65.45% Due to marketing done to the federa-tions, there was increased interest in the services provided by district acad-emies

4.3.8 Number of formal tal-ent identification pro-grammes supported


4.3.9 Number of talented athletes supported within a structured development pro-gramme by sport federation


4.3.10 Number of sport and recreation projects implemented by the sports council


4.3.11 Number of people trained as part of community sport

2 923 480 480 0%

4.3.12 Number of people trained as part of club development pro-gramme

2 605 520 520 0%

4.3.13 Number of hubs pro-vided with equipment and attire


4.3.14 Number of clubs pro-vided with equipment and attire

273 150 150 0%

4.3.15 Number of staff ap-pointed on a long term or permanent basis within the 6% allocation

11 8 8 0%

4.3.16 Number of accredited sport academies sup-ported


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Performance Indicator Actual Achieve-ment 2012/2013



Deviation from planned target to Actual Achievement for 2013/2014


Non-Standardised performance indicators4.4.1 Number of learners support-

ed to participate in national school sport competitions


4.4.2 Number of learners in school sport tournaments at a dis-trict level

New indicator 2 250 2 250 0%

4.4.3 Number of educators trained to deliver school sport pro-grammes

474 300 300 0%

4.4.4 Number of schools provided with equipment and attire

323 136 136 0%

4.4.5 Number of sport focus schools supported


4.4.6 Number of school sport co-ordinators remunerated


4.4.7 Number of school sport structures supported

15 16 16 0%

4.4.8 Number of school sport staff appointed on a long term or permanent basis within the 6% allocation

New indicator 11 8 (27.27%)

7. DONOR FUNDS

7.1. Donor Funds Received

Name of donor Brandhouse, Standard Bank, White Star, National Department of Arts and Culture,South African Breweries,Road Accident Fund, Vodacom, Phillip Morris and CATHSSETA

Full amount of the funding R6 891 000

Period of the commitment 01-11 October 2013

Purpose of the funding MACUFE

Expected outputs MACUFE

Actual outputs achieved Successful MACUFE

Amount received in current period (R’000) R6 891 000

Amount spent by the department (R’000) R6 891 000

Reasons for the funds unspent N/A

Monitoring mechanism by the donor Reports to donors

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8. CAPITAL INVESTMENT

8.1. Capital investment, maintenance and asset management plan

Capital investment

a) With regard to the construction, upgrading and maintenance of the buildings, which house the libraries and museums, the baseline allocation of funds for the MTEF period includes the following conditional grant: 2013/14 R185.672 million 2014/15 R202.214 million 2015/2016 R193.238 million

b) The capital investment plan was developed and will be updated annually to ensure that once priorities have been determined, the funds from the conditional grant will be spent according to

specific timeframes, which should minimise the rollover of funds to subsequent years. c) The infrastructure programme is aligned with the Free State Growth and Development Plan. The Preferential Procurement System is applicable to the Department’s entire infrastructure programme and preference is given to local SMME’s and HDI companies and individuals.

d) The following processes are being implemented on building construction projects to realize the objectives of the EPWP:

- where practical, enforcing labour-intensive construction methods to provide employment opportunities to local unemployed people (e.g. manufacturing roof trusses on site); - providing training or skills development to the locally employed workers; - building cost-effective and quality assets.

The main target groups for the above will be:

- women; - youth between the ages of 18 and 35; and - persons with disabilities.

e) The User Asset Management Plan (U-AMP) was completed and submitted to the Department of Public Works. This exercise highlighted the office accommodation needs and shortcomings.

The U-AMP will be updated again during the 2014/15 financial year.

f) See table below (as attached Par 8.1) for the progress report on the upgrading and maintenance of the buildings in the respective programmes

Note: The capital infrastructure include immovable assets as funded by the Library Service Conditional Grant Asset Management

• Implementation of capital projects was achieved with hiccups on Library Projects, which have been delayed by IDT since 2011/12 financial year. The said Libraries are the following: Soutpan,

Arlington, Luckhoff, Memel and Smithfield. The department is in negotiations to implement the remaining three, of which their adjudications have not yet been finalised by IDT. • Asset Management have been progressing extremely well in the current financial year with the implementation of EXCO resolution 06 of 2010. • The following infrastructure projects have been completed in the current year:

• Jacobsdal Library

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• Philippolis Museum upgrade • Winburg Museum upgrade • Basotho Cultural Village upgrade • Lejweleputswa Arts & Cultural Centre upgrade • Bloemfontein Civic Theatre upgrade • Harrismith Library upgrade • Oppermansgronde Library upgrade • FSSSI Netball Centre • FSSSI Table Tennis/Badminton • The following Infrastructure projects are currently in progress (list projects) and are expected to

becompleted as follows: • Seisa Ramabodu Stadium (December 2014) • Kaizer Sebothelo Stadium (June 2014) • Sipho Mutsi Stadium (May 2014) • Sipho Mutsi Indoor Centre (December 2014) • Tumahole Indoor Centre (June 2015) • Wesleyan School Church (May 2014) • Bloemfontein Library Phase 2 (June 2014) • Hobhouse Library (January 2016) • Orangeville Library (November 2015) • Wepener Library (August 2014) • Plans to close down or down-grade any current facilities • Progress made on the maintenance of infrastructure. Maintenance of buildings was done through the

assistance of Public Works for the Libraries throughout the province. The challenge still remains that of Business Partners and Warden Buildings whereby less maintenance is being done even though a number of letters were sent to DPW and meetings held between the two HOD’s for DSACR and DPW. The non-adherence to contractual obligations by the landlord has led to a situation where-sewerage pipes are forever bursting at Business Partners; and a recent encounter is that of Warden Building being without water for more than three weeks.

• The department had to do some minor maintenance and repairs due to the delays by PW. • Major maintenance projects were done at Oppermansgronde and Harrismith Libraries. The other projects were carried out at Basotho Cultural Village, Winburg Museum, and Lejweleputswa Arts Centre • Progress made in addressing the maintenance backlog during the period under review, for example,

as the backlog grown or become smaller? Is the rate of progress according to plan? If not why not, and what measures were taken to keep on track

Asset management

a) Assets under the control of the Department comprise equipment (computer and office equipment), music instruments, and library materials.

b) With effect from 1 April 2012, library materials are disclosed as part of the assets, and comprises the major bulk of the assets. A policy on management of library materials as assets was developed in line with Chapter 12 of the National Treasury’s Reporting Framework.

c) Funds were utilised to maintain the necessary equipment on a priority basis. d) The asset management administration utilises the LOGIS system (and PROLIB system for library

materials only), which centralises the asset register records of the Department. A full reconciliation of the asset register was done, and all the assets in the Department were marked with unique num-bers for easy identification from and to the asset register and for stocktaking purposes.

e) A full annual stocktaking and quarterly spot-checks of all the assets under the Department’s control was conducted during the 2013/14 financial year and will be continued during the 2014/15 financial year with an approved stocktaking plan.

f) Management of assets has improved and the implementation of EXCO’s Resolution 06 of 2010 and section 45 (e) of the PFMA have been complied, with efficient asset management principles.

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Redundant and obsolete assets were donated to different beneficiaries as identified by management and also as per requests from NGO’s, etc. Monthly reporting on asset management has become part of the performance agreements of SMS members, and reports on compliance are provided at

Financial Control Committee and Management meetings on a regular basis.g) Losses were reported and such assets removed form the asset register. The process to determine liability was followed and through the assistance of the Office of the State Attorney, some were recoverable losses and processes were followed to recover those losses.h) New purchases, adjustments and disposals were done throughout the financial year to ensure that

the asset register is continually being updated. The asset reconciliations were done on a monthly basis to detect differences and to attend to them promptly.

i) 90% of the departmental assets are in good to fair condition and 10% are redundant and obsolete assets. j) Stocktakings were conducted at different departmental buildings/institutions in order to determine-

whether all assets on the asset register are fully accounted for. Lack of reporting on movement of assets remains a challenge, which is being addressed on a continuous basis. Consideration is being given to decentralisation of certain Logis functions in order to capture movement of assets at district level on time.

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1




PART CGOVERNANCE

PART D

GOVERNANCE


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1. INTRODUCTION

Commitment by the department to maintain the highest standards of governance is fundamental to the management of public finances and resources. Users want assurance that the department has good governance structures in place to effectively, efficiently and economically utilize the state resources,which is funded by the tax payer.

2. RISK MANAGEMENT

The Risk Management Committee and Risk Management Unit were fully functional for the 2013-14 financial year, with the approved Risk Management Strategy, Risk Management Policy, Risk Manage-ment Committee Charter and Risk Implementation Plan being in place for the 2013/2014 financial year.

Risk Workshops were arranged during which risk identification, inherent risk assessment, existing con-trols, residual risk assessments, action plans/mitigating strategies and then the updating of the risk register and risk profile, were done. The updated risk register, risk mitigating action plan and risk profile was approved by the Accounting Officer. The risk mitigating action plan was continuously monitored and updated.

Quarterly Risk Management reports were presented in the Departments Audit Committee and an Internal Audit were conducted on Risk Management during the 2013/2014 financial year.

The effectiveness of risk mitigating strategies is monitored by the Risk Management Committee.

Provincial Treasury evaluated the Key performance of the Risk Management Unit and Risk Management Committee and an average compliance of 99% and 97% compliance were achieved.

3. FRAUD AND CORRUPTION

The Department has an approved Fraud Prevention and Fraud and Corruption Response Plan that was implemented and monitored by the Risk Management Committee as part of their responsibilities,during the 2013/2014 financial year. The Fraud Prevention and Fraud and Corruption Response Plan stipulate the mechanisms in place to report fraud and corruption which include the following:

1) Report to the Director within whose Directorate the possibility of fraud is identified. 2) Incidents may also be reported by using the following hot-lines:

• Provincial Hotline • National anti-corruption Hotline • Public Protector RSA • Presidential Hotline

Reported cases are investigated by Labour Relations and where officials are founded to be guilty ap-propriate steps are then taken, depending on the type of misconduct.

4. MINIMISING CONFLICT OF INTEREST

Section 30 of the Public Service Act, 1994, stipulates that public servants must place the whole of their time at the disposal of the State. Official must not perform remunerative work outside their employment in the Public Service without approval of the relevant executing authority. The Code of Conduct also stipulates that a public servant does not, without approval, undertake remunerative work outside official duties.

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When considering a request to engage in outside employment it is first established whether the outside employment would interfere with the proper performance of official duties and whether it would give rise to conflict of interest as well he general availability of persons outside the public service to undertake the work

Any secondary work should not place the official in conflict with her/his official duties. Such work must be performed entirely after hours.

The work should not be of such a nature that the Department of Sport, Arts, and Culture or the Free State Provincial Government might be embarrassed in any way.

To further more support the above mentioned it is also required from all Supply Chain Management Practitioners to disclose their business interest, inclusive of all Bid Committee members. During every Bid Meeting, all members have to sign a declaration form whereby they indicate any conflict of in-terest relating to the matters to be dealt with a per the agenda and in such cases, they are expected to recues themselves.

To ensure that no employee of the department does business with the department, Supply Chain Man-agement verifiers the ownership of the companies against the PERSAL system through the utilisation of ID numbers to detect if owners of such companies are not employed by the state.

In instances whereby conflict of interest is being identified, Supply Chain Management requests an approval from the Accounting/Executing Authority and advice is being sought from the Chief Financial Officer of head of Department. The department also issued a Chief Financial Officer Circular indicating that no official will be allowed to do business with the department.

An employee who does not comply with the prescriptions as stated above is guilty of misconduct as stated in the PSCBC Resolution No. 2 of 1999 (Disciplinary code and procedures) and may be charged as such.

5. CODE OF CONDUCT

The department makes use of Resolution 1 of 2003: Disciplinary Code and Procedure for the Public Service for the reporting, recording and management of misconduct cases.

How the Code of Conduct and ethical behavior is fostered and internalized within the department:

Presentation on the “Code of Conduct” and the distribution of the Code of Conduct leaflets forms part of the department’s Induction and Orientation process for new employeesBriefing Sessions are also conducted for other employees The performance agreements of Senior Managers and Senior Management meetings are used to foster a culture of ethical behavior:Under the Core Management criteria of ‘People Management and Empowerment’ in the Performance Agreements of Senior Managers, the latter are assessed among others in their application of labour and employment legislation/ regulations within their respective line functions.The Code of Conduct also forms an integral part of the Performance Development and Management System for all officials on sal-ary levels 1 – 12.

The Department also holds a view of zero tolerance to any misconduct, fraud or corruption.

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6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES

There is always a need for specific competencies in the Occupational Health and Safety.

Partners and stakeholders will have to play a more strategic role in creating capacity within the organ-isation, specifically service providers should be contracted to ensure skills transfer whilst they deliver contracted services.

Instances where a lack of capacity exists will have a negative impact on the community in terms of service delivery.

Non-compliance of the Act could result in the increase of Injury on Duty for internal staff and third party claims from external clients. Challenges identifies is to comply and implement the act without dedicated resources.

The management team will have to take ownership of strategically considering their human resources needs instead of planning on a needs/ad hoc basis. Employees need to support a culture of commitment, development and service delivery. Adhering/implementing recommendations to improve occupational safety in the workplace.

7. PORTFOLIO COMMITTEES

Provide commentary on the following:

• The dates of the meeting • Matters raised by the Portfolio Committee and how has the department addressed these matters

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8. SCOPA RESOLUTIONS

Resolu-tion No. Subject Details Response by the depart-

ment

Re-solved

(Yes/No)Enforcement of PFMA

Implement effective internal controls and processes which will prevent and detect any non-compliance matter in their departments /entities. Instituting and operating appropriate and relevant key internal controls;

Quarterly KCM is utilised to assess the progress.

Ongoing

Enforcement of PFMA

Ensure that minimum policies and procedures as com-municated by Provincial Treasury are developed, ap-proved and implemented before 30 April 2013 Monitoring and enforcing financial management legal requirements and ensuring that standard operating procedures are de-veloped in line with relevant legislative requirements and implemented;


Ongoing

Enforcement of PFMA

Effective use of Audit Committee to perform an oversight thus giving assurance to the accounting officer/authority.


Ongoing

Enforcement of PFMA

Ensure that the following actions are taken in case of non-compliance: • Investigate the matter; • Institute disciplinary action against officials if liable in law; if not liable, the reason why the relevant official is not liable in law must be stated. • Report the disciplinary action taken against an offi-cial to the Executive Authority, Provincial Treasury and AGSA; and • If the matter has financial implications attached to it, ensure that officials are charged with financial miscon-duct and recover those monies from the responsible officials, if liable in law. All incidents of non-compliance must be officially recorded and submitted to Provincial Treasury on bi-monthly basis.

Monthly KCM is utilised to assess this resolution.

Ongoing

Enforcement of PFMA

Provide all reports, documents and information required by law or requested in terms of section 41 of the PFMA within the timeframe to Provincial Treasury and AGSA. Accounting Officers are accountable and should ensure that information provided is complete, accurate, useful and reliable.

Treasury uses oversight information for assess-ment.

Ongoing

Provincial Inter-departmental Claims

Interdepartmental claims should be limited and budget allocation should be done according to the mandate of a department.

Monthly and Quarterly KCM reports are utilised to assess progress on this resolution.

Ongoing


When one department needs to incur expenditure on behalf of another department there must be a written agreement between the relevant Accounting Officers on behalf of the relevant.


Ongoing


The Accounting Officer who incurs the expenditure must ensure that an official claim with relevant supporting documents is issued within 15 days from the date that expenditure was settled.


Ongoing

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Resolu-tion No. Subject Details Response by the depart-

ment

Re-solved

(Yes/No)Provincial Inter-departmental Claims

All accounting transactions related to these claims should be processed on the financial system before month end closure.


Ongoing

Provincial Inter-departmental Claims:

All interdepartmental claims must be settled within 30 days and in case of disputes, disputes must be commu-nicated in writing within 10 days from receipt of the claim.


Ongoing


The Accounting Officer incurring the expenditure must en-sure that proper procurement procedures are executed and no irregular or fruitless and wasteful expenditure is incurred.


Ongoing

Debt manage-ment

Preventive and detective control measures should be im-plemented to ensure that debt is limited, communicated and recovery arrangements are agreed upon within 60 days from identification of debt.


Ongoing

SECTION B

Code of Conduct Developing, communicating, implementing and monitor-ing compliance with the code of conduct;

The department imple-ments the Code of Con-duct as in the Public Service Regulations. All new employees received and signed for the booklet on code of conduct and also received training. A Generic code of conduct was developed for PDMS documents which compre-hensively incorporates the Code of Conduct.

YES

Code of Conduct Ensure employees are properly trained and understand the code of conduct;

The department imple-ments the Code of Con-duct as in the Public Service Regulations. All new employees received and signed for the booklet on code of conduct and also received training. A Generic code of conduct was developed for PDMS documents which compre-hensively incorporate the Code of Conduct. Code of conduct is addressed together with Misconduct and Grievance training at workshops.

YES

Enforcement of PFMA

Effective use of the internal audit function where there were non-compliance matters reported.

Policy requirements usu-ally form part of the criteria indicated in internal audit reports. As from October 2013, specific reference is made to non-compliance if such detailed findings have been highlighted in a report.

YES

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Resolu-tion No. Subject Details Response by the de-

partmentResolved (Yes/No)

Procure-ment Func-tion

Accounting Officers/Authorities must within 30 days from receipt of this assessment develop a remedial action plan with responsibil-ity and timeframe for execution as well as supervision to imple-ment the recommendations of Provincial Treasury and to resolve all matters before 30 October 2013. A bi-monthly progress report on implementation signed off by the Accounting Officer/Author-ity should be submitted to Treasury. Accounting Officer/Authority should identify none or poor performance and institute disciplinary actions

Action Plan on imple-mentation was devel-oped and progress re-ported as part of KPI’s monthly report.

YES

Asset Man-agement

The Accounting Officer must within 30 days from the tabling and adoption of this resolution by the Legislature develop a remedial action plan with responsibilities and timeframes to ensure the fol-lowing: • Asset register is converted to LOGIS Asset register, within time-frames indicated by National Treasury. • Critical funded vacancies are filled within 3 months. • Adequate skills to fulfil asset management functions. • Completeness, existence and accurate valuation of assets • Effective management of Work in Progress related to Infrastruc-ture • Effective contract management. • Compliance with Physical Asset management KPI’s issued by Provincial Treasury

Asset register is already on LOGIS and no need to convert it to LOGIS. Vacancy exists in as-set management after the resignation of one official. Provincial Trea-sury’s Asset Manage-ment forums and De-partmental workshops were presented to asset controllers and asset holders. Assets are captured at cost prices. Monthly and Quarterly reporting is done.

Ongoing

Asset Man-agement

Must provide a detail report before 30 April 2013 to this Commit-tee regarding the following information: • Consultants/contract workers used since 2011/12 till date of report; • Scope of appointments; • Period of appointment/s; • Cost implication; • Skills transferred; • Outcome/achievements versus scope; • Number and level of vacancies in Asset management during each period of appointment of consultants/contract workers.

The department has never appointed any consultants/contract workers for implemen-tation and updating of the asset register since 2011/12 to date.

YES

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Resolu-tion No. Subject Details

Re-sponse by the depart-ment

Re-solved (Yes/No)

Prede-termined Objec-tives

Implement control measures which will prevent such findings in future financial years. These controls measures must be able to ensure the following: • Reported indicators on the predetermined objectives are accurate when compared to the source

information, • The actual relevant performance must be valid when compared to the evidence provided, • The information reported is completed with reference to the reported information, • Indicators are clear and well defined to ensure that actual performance are consistent and measurable • The indictors and the targets must be consistent to the planned objectives. • Effective monitoring of financial and performance information on quarterly basis. • Sufficient capacity both resources and skills exist in Strategic Planning and Monitoring unit to comply-with requirements of predetermined objective. The Accounting Officer/Authority must request monthly management, monitoring and reporting on the status of implementation of this action plan from the CFO and institute disciplinary actions against rel-evant officials for poor performance.

Com-pleted.

YES

Prede-termined Objec-tives

The above mentioned matters should be included in the jobs descriptions / relevant agreements to ensure that disciplinary action can be instituted if the findings are not effective address in 2013/2014 financial year. The Accounting Officer must request monthly management, monitoring and reporting on the status of implementation of this action plan from the CFO and institute disciplinary actions against relevant of-ficials for poor performance.

Com-pleted.

YES

Audit Commit-tees

AO and AA must develop mechanisms that will ensure that the management submits responses to the internal audit reports.

For the year up to date, there are no out-standing manage-ment com-ments. Matter regarded as final-ised.

YES

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9. PRIOR MODIFICATIONS TO AUDIT REPORTS

Matters of non-compliance Financial year in whichitfirstarose

Progress made in clearing/resolving the matter.

Financial Misconduct: Misconduct discovery dates not identified.

2012/13 Template expanded

Internal Audit: lack of follow-ups audits due to capacity constraints.

2012/13 Admin official appointed.

Internal Audit: Reviews by senior officials on the audits performed not sufficient.

2012/13 Internal official’s job upgraded to that of Senior Auditor. Task now performed.

Information Technology Service Continuity 2012/13 DRP was tested in June 2013Assets: Assets on the asset register could not be physically verified.

2011/12 The asset register was updated. Reconciliation done monthly and discrepancies attended to. Audio Visual and Computer Equipment

Bid documents not received. 2012/13 All bid documents relating to departmental projects handled by PW are now requested via the HOD’s office. There is regular follow-up to ensure that DPW has complied with relevant procurement and CIDB regulations.

Non-compliance with SCM procedures by Public Works

2011/12 SLA sent to DPW for the Accounting Officer’s signature.

Provider was not on the list of prospective suppli-ers.

2012/13 All quotations are being requested from sup-pliers on the database and any deviations are being recorded for HOD”s approval and reported to PT.

Goods and services: Payment not settled within 30 days.

2012/13 All payments are date stamped by SCM and 90% of invoices are paid within 30 days except for Prolib payments which are sometimes not settled within 30 days.

Procurement: Less than three quotations were pro-vided and approved deviations were not obtained.

2012/13 More than three quotations are being re-quested and any deviation is being reported for approval by the Accounting Officer.

Procurement contract not signed by both parties. 2012/13 All contracts concluded with department are signed including Infrastructure projects where DPW is involved.

Assets: Immovable assets completed and not transferred to the Department of Public Works (section 42 transfers)

2012/13 WIP reconciliation to be updated in Commit-ments (including Infrastructure) policy and pro-cedures. Staff to be capacitated accordingly.

Assets: Library materials could not be traced to the register.

2012/13 A program to capture all donations on the Pro-lib system was developed. District Offices must submit monthly progress reports. Quarterly donation reports are submitted to Finance.

Additions: Payment number of the asset is not captured on the asset register.

2012/13 All relevant information to reflect on the asset register as per minimum requirements of the asset register.

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Matters of non-complianceFinancial year inwhichitfirstarose

Progress made in clearing/resolving the mat-ter.

Consultants: Concern over SCM policy. 2012/13 SCM policy has been amended to include the para-graph prohibiting consultants to take part in the final award and having decision making powers. Currently consultants are sitting on an adhoc basis in the bid committees mainly for their expertise advice without any decision making powers.

Compensation: Leave not timely captured. 2010/11 Monthly monitoring through MIS reports.Compensation: Certified payrolls not always submitted by paypoints.

2010/11 There is a significant improvement on the payrolls returned timely and signed.

Compensation: Late recovery of overpayment (control weakness)

2012/13 Improvement in communication between Salary Ad-ministration and HR.

User Access Management 2012/13 IT is taking care of RCAF reports matters.Procurement information not published on the department’s website.

2012/13 All bids are being published in the departmental web-site and copies kept in the relevant bid file.

AOPO: inconsistence errors found 2010/11 Training provided on performance information.Compensation: Screening of employees was not done.

2011/12 Applied to all appointments.

Expenditure management: Approval is not obtained for remunerative work outside the province.

2011/12 Proper steps are taken when made aware. Circular issued yearly. Use information on suitability checks to ensure officials immediately complete the applicable documents.

Compensation: Delay in roll-out of training to improve timing of capturing leave.

2012/13 Training done.

Internal Control: HR policies not in place 2010/11 Policies done but some not yet finalised.Compensation: Copy of identity document not certified.

2012/13 Action plan; Audit of SP files and NMR actions com-bined and executed 6 monthly

Gift, donations and sponsorships: Declaration register is not kept.

2012/13 The policy is yet to be finalised for individual declara-tions.

Include a discussion on mechanisms put in place by the Accounting Officer to resolve the matters re-ported by the AGSA in the previous financial year. This should include all matters in the audit report and those noted as important in the management report.

The discussion should be limited to all matters that gave rise to a qualification, disclaimer, adverse opinion and matters of non-compliance only. The department may include the information in a table as follows:

10. INTERNAL CONTROL UNIT

Internal Control is the responsibility of every manager within the directorates as there is no specific unit dealing with internal control. Check lists have been introduced which are aligned to Supply Chain Management prescripts to serve as input documents to assist with verification of compliance matters. Issues of non-compliance are listed in a deviations register and are being reported to the Account-ing Officer on a quarterly basis for approval thereof and or referral to Liability Committee for further handling.

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Internal control functions are performed by both sub-directorates: Financial Accounting and Budgeting. All transactions are checked before they are processed on the system. This includes journals, payments, receipts and subsistence and travel claims. There are various checklists, weekly and monthly control measures built in to prevent misallocations, fraudulent or incorrect transactions being processed. KCM is part of the control measures. Access to the system is limited to authorised personnel only; access to documents is also restricted.

So far this works well in the absence of a dedicated internal control unit.

To support effective internal controls proper HR delegations has been implemented. To further enhance compliance to HR legislation, various checklists has been developed and implemented. Compulsory leave registers to be updated regularly by managers and monthly reconciliations ensures leave manage-ment. The evaluation and maintenance of personnel information via CV reports ensures compliance to the National Minimum Information Requirements.

11. INTERNAL AUDIT AND AUDIT COMMITTEES 11.1 INTERNAL AUDIT

Mandate

The Internal Audit Activity is an integral part of the Department and has been established in terms of sec-tion 38(1)(a)(ii) of the Public Finance Management Act, 1999 (Act 1 of 1999). It functions under relevant legislation and policies applicable to the Department.

Purpose and Responsibility

Internal Audit is an independent appraisal function to examine and evaluate the Department’s activties as a service to the Department. The objective of internal auditing is to assist management and other members of the Department in the effective discharge of their responsibilities. They are provided with information about the adequacy and effectiveness of risk management, internal controls, governance and performance. The objective therefore includes promoting effective control at reasonable cost.

Scope of work

The internal audit activity must review and report that the Department’s network of control processes as designed, is adequate and functioning in a manner to ensure that:

- Financial, managerial and operating information is accurate, reliable and timely.

- Employees’ actions are in compliance with policies, standards, procedures, instructions, code of

ethics and applicable laws, regulations and contractual obligations.

- Resources and the Department’s interest are properly controlled and safeguarded from abuse and losses of any kind.

- Financial, human and other resources are acquired economically and in terms of all the relevant

regulations and used efficiently.

- Managerial and strategic plans, programmes, and objectives are achieved.

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Summary of internal audit work done

The Internal Audit Activity reviewed and raised findings and recommendations with regard to the Interim Financial Statements, Performance Information, Risk Management, Information Technology, Compliance with Supply Chain Management Legislation and Policies, Transfer Payments, Disposal of Library Mate-rial, and Expenditure incurred at the Basotho Cultural Village.

11.2 AUDIT COMMITTEE Mandate

The Audit Committee is shared with the Department of Social Development. The Audit Committee is constituted in terms of sections 76(4) (d) and 77 of the Public Finance Management Act (Act 1 of 1999) as amended, read in conjunction with Treasury Regulation 3.1.

Summary of key activities and objectives of the Audit Committee

- Review of the interim and annual financial statements.

- Review the effectiveness of the internal control system, including information technology security and control.

- Review the charter, annual audit plans, activities, staffing, and organizational structure of the in-ternal audit activity, including its coordination with external auditors, internal audit reports and the responses of management to specific recommendations.

- Review the external auditors’ proposed audit scope and approach, including coordination of audit effort with internal audit.

- Review the effectiveness of the system for monitoring compliance with laws and regulations and the results of management’s investigation and follow-up (including disciplinary action) of any instances of non-compliance.

- Evaluate the adequacy and effectiveness of the risk management process and the maintenance and application of the fraud prevention plan.

- Report and make recommendations to the Accounting Officer and MEC; and in the annual report of the Department comment on the effectiveness of internal control, the quality of in-year management reports submitted in terms of the PFMA and the Division of Revenue Act, and its evaluation of the annual financial statements.

- Ensure that a combined assurance model is applied to provide a coordinated approach to all assur-ance activities and that the combined assurance is appropriate to address all the significant risks, including strategic risks facing the Department.

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11.3 AUDIT COMMITTEE MEMBERS

The table below discloses relevant information on the audit committee members:

Name Qualifications Internal or external

If internal, position in the department

Date appointed DateResigned

No. of Meetings attended

Ms J Naicker (Chairperson)

B (Accounting)CACIA

External Not applicable 01 January 2011 26 March 2014 0

Mr G Motloi(Interim Chairper-son)

B Com (Accounting)Management Devel-opment Programme (MDP)

External Not applicable 01 January 2011 Not applicable 4

Mr A Dzuguda B Com (Hons) External Not applicable 01 January 2011 Not applicable 4

Mr P Danster B Proc External Not applicable 01 January 2011 Not applicable 1

Ms T Mnqeta B Com (Accounting) External Not applicable 01 August 2013 Not applicable 2

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12. AUDIT COMMITTEE REPORT

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

Audit Committee responsibility

The Audit Committee complied with the responsibilities arising from section 38(1)(a)(ii) of the Public Finance Management Act, 1999 (PFMA) and Treasury Regulation 3.1. The Committee adopted an ap-propriate formal terms of reference as its Charter, has regulated its affairs in compliance with this charter and discharged its responsibilities as contained therein.

The effectiveness of internal control

Our review of the findings of the Internal Audit Activity which was based on the risk assessments con-ducted in the Department revealed certain weaknesses that were raised with the Department.

The following internal audit work was completed during the year under review:

▪ Review of performance information

▪ Review of the interim financial statements

▪ Risk management

▪ Information technology

▪ Compliance with supply chain management legislation and policies

▪ Transfer payments

▪ Disposal of library material

▪ Expenditure incurred by the Basotho Cultural Village

The following were areas of concern and have since been corrected by Management or are in the process of being addressed:

▪ Planning, monitoring and evaluation unit not adequately capacitated and non-achievement of some planned targets.

▪ Evidence supporting the interim financial statements not complete in all instances.

▪ Risk register not signed off by the responsible officials; certain strategic risks not reflected in the an-nual performance plan; poor attendance of risk management meetings by some members.

▪ Lack of an information technology security register; pool equipment not properly administered; no charter for the departmental information technology committee; software could not be tracked to the relevant computers; servers not adequately safe-guarded.

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▪ Units not submitting needs analysis’ timely to supply chain management; losses policy not reviewed; losses not followed up and recovered and/or written off.

▪ Lack of formal contracts and shortcomings in the procedures followed with the disposal of library material resulting in disputes with the service providers

▪ Written quotations not always obtained and approval for such deviations not requested; expenditure not authorized within delegations; unauthorized appointment of casual workers; goods and services acquired before approval of the expenditure requests; incorrect signing of cheques;double payments; donations made without proper approval; invoices not certified and paid within 30 days; conflict of interest.

Appointment of casual workers; goods and services acquired before approval of the expenditure requests; incorrect signing of cheques; double payments; donations made without proper approval; invoices not certified and paid within 30 days; conflict of interest.

In-Year Management and Monthly/ Quarterly Reports

The Department has reported monthly and quarterly to the Treasury as is required by the PFMA.

Evaluation of Financial Statements

We have reviewed the annual financial statements prepared by the Department.

Auditor-General’s Report

We have reviewed the Department’s implementation plan for audit issues raised in the previous year and we are satisfied the matters have been adequately resolved except for then following items that are in an advanced stage of completion:

▪ Maintenance of personnel gift register.

▪ Cross-referencing of performance information to the supporting documents.

▪ Capacitating of the Internal Audit Activity.

▪ Timely reviewing of internal audit engagement files by the audit seniors.

▪ Signing off of the Service Level Agreement between SACR and Public Works and monitoring of SCM processes followed by Public Works.

▪ Payment of invoices within 30 days.

▪ Transfer process for immovable assets to ensure compliance with section 42 of the PFMA.

▪ Timely returning of signed payrolls.

▪ Monitoring of Resource Access Control Facility reports from PERSAL and LOGIS.

MR G MOTLOIINTERIM CHAIRPERSON OF THE AUDIT COMMITTEEDATE : 28 MAY 2014

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1

PART A

GENERAL INFORMATION


PART CGOVERNANCE

PART D

GOVERNANCE


FS: SPORT, ARTS, CULTURE AND RECREATION

VOTE 12

REPORT BY THE AUDITOR-GENERAL

for the year ended 31 March 2014


VOTE 12

REPORT OF THE ACCOUNTING OFFICER

for the year ended 31 March 2014


VOTE 12


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1. INTRODUCTION

Human Resource Management in the departments is playing a strategic partnership role by providing an enabling environment to Managers to fulfil their roles and to ensure that the department reaches its goals. Aligning all HR practices with the Strategic Plan and Annual Performance Plans.

2. OVERVIEW OF HUMAN RESOURCES

Human Resource Priorities for the year under review and the impact of these priorities.

To ensure that the department will be able to implement its mandate the following objective has been set:

• Promote sound management in department by developing management power and functions.

• Establish accountability for performance and corruption in department.

• Organizing flexible work and employment practices.

• Developing a representative and committed workforce.

• Development through performance management, intergraded training and education and career paths.

• Empower and develop employees.

Management of discipline.

Workforce planning framework and key strategies to attract and recruit a skilled and capable workforce.The Department will utilise it human resource plans and transformation policies to set targets for achieving specified employment equity objectives, in particular for achieving race, gender and disability equity, as well as for obtaining the skills necessary to meet the department’s operational needs.

In making appointments and filling posts in the department, due consideration are given to equality and the other democratic values and principles enshrined in the Constitution.

Retaining skilled staff is therefore, the main challenge that employers currently face. Staff retention is about finding the best employee for the job and finding ways of keeping these employees within the de-partment. It involves a range of ideas and human resource practices that should all be seen as interlinked. To meet this challenge, employers are becoming more proactive and are increasingly applying innovative, creative and experimental solutions to retain staff, including offering:

• Competitive remuneration;

• More generous service benefits

• Additional training and development opportunities

• More flexible working arrangements and benefit

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In the midst of this, the Department ensures that it is able to attract and retain. To ensure the retaining of Women and people with disabilities the department will introduce measures on non-discrimination and sexual harassment in the workplace and will execute regular investigation to establish whether all parts of the departmental buildings are accessible to those with disabilities.

Whenever an employee submits his/her resignation, attempts will be made to retain them by apply for ap-proval to set the salary notch/level of a post at a higher notch/level in term of Public Service Regulation 1.V C.3 or consider the horizontally deployment of the employee in an attempt to deal with the employees career development expectation, if applicable

Department will provide employees with ongoing opportunities to attend training which will support their work performance and career development. Bursaries will be granted to employees to improve their level of Education. Employees will be granted special leave for developmental purposes.

Employee performance management framework

Performance management is aimed at improving performance by directing attention to key areas of activ-ity, which are identified through strategic planning processes. It seeks to establish clear links between organizational development and culture change, the delivery of quality services and the personal and professional development of jobholders at work.

The philosophy of performance management is to form a common bond of ownership amongst all jobhold-ers. To create an environment where all individuals are being developed, motivated and inspired to deliver a quality service based on effective performance. The objective of this policy on performance management is to provide a corporate framework to manage and secure effective and efficient organizational perfor-mance in meeting customer needs.

In order to achieve individual excellence and achievement, the Free State Provincial Government has the following objectives for performance management:

To establish a performance and learning culture in the Public Service;

To ensure that all jobholders know and understand what is expected of them;

To promote contact and interaction about performance between jobholders and their supervisors;

To identify and manage jobholders’ development needs and meet those needs where possible;

To evaluate performance fairly and objectively;

To reward good performance;

To improve service delivery; and

To manage unacceptable performance.

Employee wellness programme

The general wellness of employees is addressed through the implementation of the Employee Health and Wellness (EHWP) Strategy. The Department also participates in the Provincial EHW Committee towards continuously updating its departmental policies and implementation strategies and to ensure that the De-partment complies with national imperatives in this regard.

Employee assistance programmes refer to all the strategies action plans and methods used to promote the physical, emotional and mental health of employees to ensure a productive workforce. Prominent among the challenges characterising today’s working environment are deterioration in work performance and

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availability due to poor physical and emotional health habits, a limited pool of talent and rising costs in the provision of health related benefits. The face of the workplace has changed dramatically over the past de-cade. An increasingly empowered and diverse workforce, technologically advancements, increased com-petition and globalisation have created a new workplace reality that is substantially different to that of the past. Helping employees maintain their health and well-being is both a moral and a hard business issue.

Highlight achievements

• The skills transferred to Interns were retained by permanently appointing these Interns in funded

vacancies.

• The successful implementation of those CATHSSETA learnerships which are applicable to the performance arias of the department.

• Successful maintenance of Zero Tolerance towards fraud and corruption can be seen with the in-crease of investigations done by Employee Relations.

Challenges faced by the department

Due to the higher demand which is placed on the department it is forever faced with financial constraints to ensure that all expectations are met. The lack of capacity is furthermore placing a weakling pressure on the achievements of targets. The department is regularly faced with moratoriums.

Future HR plans / goals

• A proper review of the departmental organizational structure to ensure proper alignment with

Departmental Strategic plan.

• Realistic Employment equity target will be set which will ensure to address imbalances with in the designated groups.

• A Properly defined affirmative action plan will be supporting the Employment Equity plan. These plans will mainly focus on the risks and weakness of the department as identified in the departmental strategic plan.

• An age analysis of the department will give direction to the succession planning priories.

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3. HUMAN RESOURCES OVERSIGHT STATISTICS

3.1. Personnel related expenditure

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

Programme Total ex-penditure (R’000)

Personnel expenditure (R’000)

Training ex-penditure

(R’000)

Professional and special services expenditure (R’000)

Personnel expen-diture as a % of total expenditure

Average personnel cost per employee (R’000)

Programme 1 76 971 50 551 152 0 74.4% 70

Programme 2 127 300 42 028 62 0 33% 58

Programme 3 115 902 52 154 46 0 45% 72

Programme 4 230 690 29 247 187 0 12.7% 40

TOTAL 541 863 173 980 447 0 32.1% 240

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

Salary band Personnel expen-diture (R’000)

% of total per-sonnel cost

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

Lower skilled (Levels 1-2) 10 887 6.2% 93 117

Skilled (Levels 3-5) 49 089 28.2% 321 153

Highly skilled production (Levels 6-8)

45 045 26% 176 256

Highly skilled supervision (Levels 9-12)

46 784 27% 104 450

Senior management (Lev-els 13-16)

17 528 10% 18 974

Contract (Levels 1-2) 134 0.1% 10 13

Contract (Levels 3-5) 35 0% 0 0

Contract (Levels 6-8) 1 125 0.6% 3 375

Contract (Levels 9-12) 684 0.4% 1 684

Contract (Levels 13-16) 2 473 1.4% 2 1 237

Periodical Remuneration 196 0.1% 15 13

TOTAL 173982 100% 743 234

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Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the period

1 April 2013 and 31 March 2014

Programme

Salaries Overtime Home Owners Allow-ance

Medical Aid

Amount (R’000

Salaries as a % of person-nel costs

Amount (R’000)

Overtime as a % of person-nel costs

Amount (R’000)

HOA as a % of person-nel costs

Amount (R’000)

Medical aid as a % of per-sonnel costs

Programme 1 34 587 68.4% 125 0.2% 2 342 4.6% 2 406 4.8%

Programme 2 28 973 68.9% 389 0.9% 1 897 4.5% 3 183 7.6%

Programme 3 36 820 70.6% 31 0.1% 2 643 5.1% 3 838 7.4%

Programme 4 20 930 71.6% 0 0% 832 2.8% 1 396 4.8%

TOTAL 121 310 69.7% 545 0.3% 7 714 4.4% 10 823 6.2%

Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the period

1 April 2013 and 31 March 2014

Salary band

Salaries Overtime Home Owners Al-lowance

Medical Aid

Amount (R’000)


Amount (R’000)

Overtime as a % of personnel costs

Amount (R’000)

HOA as a % of person-nel costs

Amount (R’000)

Medical aid as a % of per-sonnel costs

Lower skilled (Levels 1-2)

5 726 52.6% 26 0.2% 967 8.9% 1 468 13.5%

Skilled (Levels 3-5) 33 208 67.6% 96 0.2% 3 575 7.3% 4 702 9.6%

Highly skilled production (Levels 6-8)

32 485 72.1% 214 0.5% 1 823 4% 2 756 6.1%

Highly skilled supervi-sion (Levels 9-12)

34 031 72.7% 209 0.4% 824 1.8% 1 486 3.2%

Senior management (Levels 13-16)

11 995 68.4% 0 0% 468 2.7% 334 1.9%

Contract (Levels 1-2) 95 70.9% 0 0% 0 0% 0 0%

Contract (Levels 3-5) 35 100% 0 0% 0 0% 0 0%

Contract (Levels 6-8) 841 74.8% 0 0% 57 5.1% 77 6.8%

Contract (Levels 9-12) 594 86.8% 0 0% 0 0% 0 0%

Contract (Levels 13-16) 2 104 85.1% 0 0% 0 0% 0 0%

Periodical Remuneration 196 100% 0 0% 0 0% 0 0%

TOTAL 121 310 69.7% 545 0.3% 7 714 4.4% 10 823 6.2%

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3.2. Employment and Vacancies

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

Programme Number of posts on approved establish-ment

Number of posts filled

Vacancy Rate Number of employees additional to the establishment

Program 1 162 145 10.5 5Program 2 230 190 17.5 4Program 3 433 291 32.8 2Program 4 124 102 17.7 0TOTAL 949 728 23.3 11

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

Programme

Salaries Overtime Home Owners Allow-ance

Medical Aid

Amount (R’000


Amount (R’000)

Overtime as a % of person-nel costs

Amount (R’000)

HOA as a % of personnel costs

Amount (R’000)

Medical aid as a % of personnel costs

Programme 1 34 587 68.4% 125 0.2% 2 342 4.6% 2 406 4.8%

Programme 2 28 973 68.9% 389 0.9% 1 897 4.5% 3 183 7.6%

Programme 3 36 820 70.6% 31 0.1% 2 643 5.1% 3 838 7.4%

Programme 4 20 930 71.6% 0 0% 832 2.8% 1 396 4.8%

TOTAL 121 310 69.7% 545 0.3% 7 714 4.4% 10 823 6.2%

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

Critical Occupations Number of Posts

Number of Postsfilled

Vacancy Rate

Numberofpostsfilledadditional to the es-tablishment

Administrative related, Permanent 49 43 12.2 0Archivists curators and related professionals, Permanent 23 17 26.1 0Auxiliary and related workers, Permanent 14 14 0 0Building and other property caretakers, Permanent 90 34 62.2 0Cleaners in offices workshops hospitals etc., Permanent 46 45 2.2 0Client inform clerks, Permanent 10 8 20 0Communication and information related, Perma-nent 11 10 9.1 0Computer programmers., Permanent 3 3 0 0Dieticians and nutritionists, Permanent 1 1 0 0Diplomats, Permanent 1 0 100 0Financial and related professionals, Permanent 10 9 10 0Financial clerks and credit controllers, Permanent 16 14 12.5 0Food services aids and waiters, Permanent 11 9 18.2 0Head of department/chief executive officer, Perma-nent 1 1 0 0

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Critical Occupations Number of Posts

Number of Postsfilled

Vacancy Rate

Numberofpostsfilledadditional to the es-tablishment

Health sciences related, Permanent 1 1 0 0

Historians and political scientists, Permanent 3 2 33.3 0Human resources & relate prof Permanent 2 2 0 0Human resources clerks, Permanent 20 17 15 0Human resources related, Permanent 6 6 0 0Information technology related, Permanent 1 1 0 0Language practitioners, interpreters & other com-munication, Permanent 18 16 11.1 0Librarians and related professionals, Permanent 126 68 46 0Library mail and related clerks, Permanent 152 133 12.5 0Light vehicle drivers, Permanent 8 7 12.5 0Logistical support personnel, Permanent 1 1 0 0Material-recording and transport clerks, Permanent 13 9 30.8 0Medical technicians/technologists, Permanent 12 11 8.3 0Messengers porters and deliverers, Permanent 5 3 40 0Other administrative& related clerks and organis-ers, Permanent 121 99 18.2 10Other administrative& related clerks and organis-ers, Temporary 1 1 0 0Other administrative policy and related officers, Permanent 120 95 20.8 0Other information technology personnel., Perma-nent 11 11 0 0Other occupations, Permanent 7 5 28.6 0Quantity surveyors & related prof not class else-where, Permanent 1 1 0 0Risk management and security services, Perma-nent 2 2 0 0Secretaries & other keyboard operating clerks, Permanent 5 5 0 0

3.3. Filling of SMS Posts

Table 3.3.1 SMS post information as on 31 March 2014

SMS LevelTotal number of funded SMS posts

Total num-ber of SMS postsfilled

%ofSMSpostsfilled Total number of SMS posts vacant

% of SMS posts vacant

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

Salary Level 16 0 0 0% 0 0%Salary Level 15 0 0 0% 0 0%Salary Level 14 5 3 60% 2 40%Salary Level 13 17 13 76% 4 24%Total 23 17 74% 6 26%

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Table 3.3.2 SMS post information as on 30 September 2014

SMS Level Total number of funded SMS posts

Total number of SMSpostsfilled

% of SMS postsfilled

Total number of SMS posts vacant

% of SMS posts vacant

Director-General/ Head of Depart-ment

1 1 0% 0 0%

Salary Level 16 0 0 0% 0 0%Salary Level 15 0 0 0% 0 0%Salary Level 14 5 3 60% 2 40%Salary Level 13 17 14 82% 3 18%Total 23 18 78% 5 22%

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

Advertising Filling of PostsSMS Level Number of vacan-

cies per level adver-tised in 6 months

Number of vacancies per levelfilledin6monthsofbecoming vacant

Numberofvacanciesperlevelnotfilledin6monthsbutfilledin12months

Head of Depart-ment

n/a n/a n/a

Salary Level 16 n/a n/a n/aSalary Level 15 n/a n/a n/aSalary Level 14 0 0 0Salary Level 13 2 0 0TOTAL 2 0 0

Table 3.3.4 Reasons for not having complied with the filling of funded vacant SMS - Advertised within 6 months and filled within 12 months after becoming vacant for the period 1 April 2013 and 31 March 2014

Reasons for vacancies not advertised within six monthsN/A

Reasons for vacancies not filled within twelve monthsDirector: Internal Audit; Recruitment process finalized and unable to appoint a suitable candidateDirector: Arts & Culture; Applications was found unsuitable

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Table 3.3.5 Disciplinary steps taken for not complying with the prescribed timeframes for filling SMS posts within 12 months for the period 1 April 2013 and 31 March 2014



3.4. Job Evaluation

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

Salary band Number of posts on approved establish-ment

Number of Jobs Evalu-ated

% of posts evaluated by salary bands

Posts Upgraded Posts downgradedNumber % of posts

evaluatedNumber % of posts evalu-

ated

Lower Skilled (Levels1-2)

158 1 0% 1 0% 0 0%

Contract(Levels 1-2)

10 0 0% 0 0% 0 0%


3 0 0% 0 0% 0 0%


1 0 0% 0 0% 0 0%

Contract(Band A) 1 0 0% 0 0% 0 0%Contract(Band D) 1 0 0% 0 0% 0 0%Skilled

(Levels 3-5)

407 4 0% 24 0% 0 0%

Highly skilled production (Lev-els 6-8)

235 2 0% 3 0% 0 0%

Highly skilled supervision

(Levels 9-12)

111 1 0% 2 0% 0 0%

Senior Manage-ment Service Band A

16 0 0% 0 0% 0 0%

Senior Manage-ment Service Band B

5 0 0% 0 0% 0 0%

Senior Manage-ment Service Band C

0 0 0% 0 0% 0 0%

Senior Manage-ment Service Band D

1 0 0% 0 0% 0 0%

TOTAL 949 8 0% 30 0% 0 0%

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

Gender African Asian Coloured White TotalFemale 19 0 3 1 23Male 6 0 0 1 7TOTAL 24 0 3 2 30

Employees with a disability 1

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

Occupation Number of employees

Job evalua-tion level

Remuneration level Reason for deviation

N/A

TotalnumberofemployeeswhosesalariesexceededtheleveldeterminedbyjobevaluationPercentage of total employed

Table 3.4.4 Profile of employees who have salary levels higher than those determined by job

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

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3.5. Employment Changes

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

Salary bandNumber of employ-ees at beginning of period-1 April 2013

Appointments and transfers into the department

Terminations and transfers out of the department

Turnover rate

Lower skilled ( Levels 1-2) 92 8 3 3.3Skilled (Levels3-5) 312 27 10 3.2Highly skilled production (Levels 6-8)

167 7 7 4.2

Highly skilled supervision (Levels 9-12)

100 3 5 5

Senior Management Service Bands A

14 0 1 7.1

Senior Management Service Bands B

3 0 0 0

Senior Management Service Bands D

1 0 0 0

Contract(Levels 1-2) 2 10 0 0Contract(Levels 3-5) 0 1 1 0Contract(Levels 6-8) 3 0 1 33.3Contract(Levels 9-12) 2 0 1 50Contract(Band A) 1 0 0 0Contract(Band D) 1 0 0 0TOTAL 698 56 29 4.2

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Table 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2013 and 31 March 2014 Critical occupation Number of employ-

ees at beginning of period-April 2013

Appointments and transfers into the depart-ment

Terminations and transfers out of the de-partment

Turnover rate

Administrative related, Permanent 38 0 1 2.6Archivists curators and related professionals, Perma-nent 18 0 3 16.7Auxiliary and related workers, Permanent 9 4 0 0Building and other property caretakers, Permanent 34 3 1 2.9Cleaners in offices workshops hospitals etc., Perma-nent 43 2 0 0Client inform clerks, Permanent 7 0 1 14.3Communication and information related, Permanent 10 0 0 0Computer programmers., Permanent 2 0 0 0Dieticians and nutritionists, Permanent 1 0 0 0Financial and related professionals, Permanent 8 0 0 0Financial clerks and credit controllers, Permanent 15 0 1 6.7Food services aids and waiters, Permanent 10 0 0 0Head of department/chief executive officer, Permanent 1 0 0 0Health sciences related, Permanent 1 0 0 0Historians and political scientists, Permanent 3 0 0 0Human resources & relate prof, Permanent 3 0 0 0Human resources clerks, Permanent 19 0 1 5.3Human resources related, Permanent 6 0 0 0Information technology related, Permanent 1 0 0 0Language practitioners interpreters & other communi-cation, Permanent 17 1 2 11.8Librarians and related professionals, Permanent 63 7 2 3.2Library mail and related clerks, Permanent 125 14 2 1.6Light vehicle drivers, Permanent 7 0 0 0Logistical support personnel, Permanent 1 0 0 0Material-recording and transport clerks, Permanent 12 0 2 16.7Medical technicians/technologists, Permanent 10 2 1 10Messengers porters and deliverers, Permanent 3 0 0 0Other administrative& related clerks and organisers, Permanent 92 14 8 8.7Other administrative& related clerks and organisers, Temporary 1 0 0 0Other administrative policy and related officers, Per-manent 84 4 2 2.4Other information technology personnel., Permanent 11 1 0 0Other occupations, Permanent 5 1 0 0Quantity surveyors & related prof not class elsewhere, Permanent 1 0 0 0Risk management and security services, Permanent 2 0 0 0Secretaries & other keyboard operating clerks, Perma-nent 10 2 1 10Security officers, Permanent 6 0 0 0Senior managers, Permanent 18 0 1 5.6Social sciences related, Permanent 1 0 0 0Social sciences supplementary workers, Permanent 0 1 0 0TOTAL 698 56 29 4.2

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Table 3.5.3 Reasons why staff left the department for the period 1 April 2013 and 31 March 2014Termination Type Number % of Total ResignationsDeath 3 10.3%Resignation 12 41.4%Expiry of contract 3 10.3%Dismissal – operational changes 0 0%Dismissal – misconduct 3 10.3%Dismissal – inefficiency 0 0%Discharged due to ill-health 0 0%Retirement 8 27.6%Transfer to other Public Service Departments

0 0%

Other 0 0%TOTAL 29 100%Total number of employees who left as a % of total employment

4%

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

Occupation Employees1 April 2013

Promotions to an-other salary level

Salary level pro-motions as a % of

employees by occu-pation

Progressions to an-other notch within a salary level

Notch progression as a % of employees by oc-cupation

Administrative related, Perma-nent 38 6 15.8% 24 63.2%Archivists cura-tors and related professionals, Permanent 18 1 5.6% 4 22.2%Auxiliary and related work-ers, Permanent 9 0 0% 8 88.9%Building and other prop-erty caretakers, Permanent 34 0 0% 25 73.5%Cleaners in offices work-shops hospitals etc., Permanent 43 0 0% 31 72.1%Client inform clerks, Perma-nent 7 0 0% 9 128.6%Communication and information related, Perma-nent 10 0 0% 8 80%Computer programmers., Permanent 2 0 0% 2 100%Dieticians and nutritionists, Permanent 1 0 0% 1 100%Financial and related profes-sionals, Perma-nent 8 0 0% 5 62.5%

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Occupation Employees

1 April 2013

Promotions to an-other salary level

Salary level pro-motions as a % of employees by oc-cupation

Progressions to an-other notch within a salary level

Notch progression as a % of employ-ees by occupation

Financial clerks and credit controllers, Per-manent 15 1 6.7% 9 60%Food services aids and waiters, Perma-nent 10 0 0% 7 70%Head of department/chief executive officer, Permanent 1 0 0% 0 0%

Health sciences re-lated, Permanent 1 0 0% 1 100%

Historians and political scientists, Permanent 3 0 0% 2 66.7%

Human resources & relate prof, Permanent 3 0 0% 3 100%

Human resources clerks, Permanent 19 0 0% 12 63.2%

Human resources re-lated, Permanent 6 1 16.7% 6 100%

Information technolo-gy related, Permanent 1 0 0% 1 100%Language practitio-ners interpreters & other communication, Permanent 17 0 0% 7 41.2%Librarians and related professionals, Perma-nent 63 3 4.8% 53 84.1%

Library mail and relat-ed clerks, Permanent 125 1 0.8% 114 91.2%

Light vehicle drivers, Permanent 7 0 0% 4 57.1%

Logistical support per-sonnel, Permanent 1 0 0% 1 100%Material-recording and transport clerks, Per-manent 12 0 0% 10 83.3%Medical technicians/technologists, Perma-nent 10 0 0% 8 80%

101



Occupation Employees1 April 2013

Promotions to another salary

level

Salary level pro-motions as a % of employees by

occupation

Progressions to an-other notch within a

salary level

Notch progression as a % of employ-ees by occupation

Messengers porters and deliver-ers, Permanent 3 0 0% 2 66.7%Other administrative& related clerks and organisers, Perma-nent 93 2 2.2% 47 50.5%

Other administrative policy and related officers, Permanent 84 2 2.4% 56 66.7%

Other information technology personnel., Permanent 11 0 0% 8 72.7%

Other occupations, Permanent 5 0 0% 3 60%Quantity surveyors & related prof not class elsewhere, Per-manent 1 0 0% 1 100%

Risk management and security services, Permanent 2 0 0% 1 50%

Secretaries & other keyboard operating clerks, Permanent 10 3 30% 0 0%

Security officers, Permanent 6 0 0% 3 50%

Senior managers, Permanent 18 0 0% 14 77.8%

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

Salary Band Employees 1 April 2013

Promotions to another salary level

Salary bands promotions as a % of employees by salary level

Progressions to another notch within a salary level

Notch progres-sion as a % ofemployees by salary bands

Lower skilled

( Levels 1-2)

92 0 0% 72 78.3%

Skilled (Levels3-5) 312 5 1.6% 230 74%Highly skilled pro-duction

(Levels 6-8)

167 6 3.6% 108 64.7%

Highly skilled su-pervision

(Levels 9-12)

100 9 9% 66 66%

Senior Manage-ment (Level 13-16)

18 0 0% 13 72.2%

Contract(Level1-2) 2 0 0% 0 0%Contract(Level 6-8) 3 0 0% 1 33.3%Contract(Level 9-12) 2 0 0% 0 0%Contract(Level 13-16)

2 0 0% 1 50%

TOTAL 698 20 2.9% 491 70.3%

102



3.6. Employment Equity

Table 3.6.1 Total number of employees (including employees with disabilities) in each of the following oc-cupational categories as on 31 March 2014

Occupational categoryMale Female

TotalAfrican Coloured Indian White African Coloured Indian White

Legislators, senior of-ficials and manager

11 0 0 2 4 0 0 3 20

Professionals 48 5 0 9 51 4 0 31 148Technicians and associ-ate professionals

81 2 0 8 54 5 0 15 165

Clerks 104 2 0 0 157 8 0 11 286Service and sales work-ers

4 0 0 1 1 0 0 1 7

Plant and machine op-erators and assemblers

7 0 0 0 0 0 0 0 7

Elementary occupations 41 1 0 0 53 0 0 0 95TOTAL 296 10 0 24 320 17 0 61 728Employees withdisabili-ties

6 0 0 3 3 0 0 3 15

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

Occupational bandMale Female

TotalAfrican Coloured Indian White African Co-

loured Indian White

Top Management 1 0 0 0 0 0 0 0 1Senior Management 8 0 0 2 4 0 0 3 17

Professionally qualified and experienced specialists and mid-management

39 4 0 15 25 1 0 20 104

Skilled technical and academically qualified workers, junior manage-ment, supervisors, foreman and superintendents

78 3 0 3 53 6 0 33 176

Semi-skilled and discretionary decision making 125 3 0 4 176 8 0 5 321

Unskilled and defined decision making 35 0 0 0 56 2 0 0 93

Contract(Top Management) 1 0 0 0 0 0 0 0 1Contract(Senior Management) 1 0 0 0 0 0 0 0 1Contract(Professionally qualified) 1 0 0 0 0 0 0 0 1Contract(Skilled technical) 2 0 0 0 1 0 0 0 3Contract(Unskilled) 5 0 0 0 5 0 0 0 10Total 296 10 0 24 320 17 0 61 728

103



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

Occupational band Male Female TotalAfrican Coloured Indian White African Coloured Indian White

Top Management 0 0 0 0 0 0 0 0 0Senior Management 0 0 0 0 0 0 0 0 0Professionally qualified and experienced specialists and mid-management

1 0 0 1 1 0 0 0 3

Skilled technical and aca-demically qualified workers, junior management, supervi-sors, foreman and superin-tendents

4 0 0 0 2 0 0 1 7

Semi-skilled and discretion-ary decision making

13 0 0 0 14 0 0 0 27

Unskilled and defined deci-sion making

2 0 0 0 6 0 0 0 8

Contract(Semi-skilled) 0 0 0 0 1 0 0 0 1Contract(Unskilled) 5 0 0 0 5 0 0 0 10Total 25 0 0 1 29 0 0 1 56Employees with disabilities

0 0 0 0 0 0 0 0 0

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

Occupational bandMale Female

TotalAfrican Coloured Indian White African Coloured Indian White

Top Management 0 0 0 0 0 0 0 0 0Senior Management 6 0 0 0 3 0 0 4 13Professionally qualified and experienced special-ists and mid-management

31 4 0 5 18 0 0 17 75

Skilled technical and aca-demically qualified work-ers, junior management, supervisors, foreman and superintendent

60 3 0 2 37 3 0 9 114

Semi-skilled and discre-tionary decision making

92 2 0 2 128 7 0 4 235

Unskilled and defined decision making

30 0 0 0 39 2 0 1 72

Contract(Senior Manage-ment)

1 0 0 0 0 0 0 0 1

Contract(Skilled techni-cal)

1 0 0 0 0 0 0 0 1

TOTAL 221 9 0 9 225 12 0 35 511Employees with dis-abilities

5 0 0 1 2 0 0 2 10

104



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

Occupational band Male Female TotalAfrican Coloured Indian White African Coloured Indian White

Top Management 0 0 0 0 0 0 0 0 0Senior Management 1 0 0 0 0 0 0 0 1Professionally quali-fied and experienced specialists and mid-management

0 0 0 2 0 1 0 2 5

Skilled technical and academically qualified workers, junior man-agement, supervisors, foreman and superin-tendents

2 0 0 0 2 0 0 3 7

Semi-skilled and discretionary decision making

5 0 0 0 4 0 0 1 10

Unskilled and defined decision making

1 0 0 0 1 0 0 1 3

Contract(Professionally qualified)

0 0 0 1 0 0 0 0 1

Contract(Skilled techni-cal)

0 0 0 0 0 0 0 1 1

Contract(Semi-skilled) 0 0 0 0 1 0 0 0 1TOTAL 9 0 0 3 8 1 0 8 29Employees with Dis-abilities

0 0 0 0 0 0 0 0 0

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

Disciplinary action Male Female TotalAfrican Coloured Indian White African Coloured Indian White

Final written warning 3 0 0 0 0 0 0 0 3Suspension without salary

2 0 0 0 0 0 0 0 2Written warning 4 0 0 0 4 0 0 0 8

105



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

Occupational category Male Female TotalAfrican Coloured Indian White African Coloured Indian White

Legislators, senior officials and managers

13 1 0 1 7 0 0 2 24

Professionals 10 0 0 3 17 0 0 6 36Technicians and associate professionals

6 0 0 0 6 0 0 1 13

Clerks 3 0 0 0 13 0 0 1 17Service and sales workers 15 0 0 0 25 0 0 0 40Skilled agriculture and fishery workers

0 0 0 0 0 0 0 0 0

Craft and related trades work-ers

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 2 0 0 0 0 0 0 0 2TOTAL 49 1 0 4 68 0 0 10 132Employees with disabilities

1 0 0 0 0 0 0 1 133

3.7. Signing of Performance Agreements by SMS Members

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

of funded SMS posts

Total number of SMS mem-

bers

Total number of signed performance

agreements

Signed performance agreements as % of total number of SMS members

Director-Gen-eral/ Head of Department

1 1 100% 100%

Salary Level 16 0 0 0 0Salary Level 15 0 0 0 0Salary Level 14 5 3 100% 100%Salary Level 13 17 14 100% 100%Total 23 17 100% 100%

Table 3.7.2 Reasons for not having concluded Performance agreements for all SMS members as on 31 May 2013

Reasons N/A

Table 3.7.3 Disciplinary steps taken against SMS members for not having concluded Performance agreements as on 31 May 2013

Reasons N/A

106



3.8. Performance Rewards

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

Race and Gender

BeneficiaryProfile CostNumber of beneficiaries

Number of employees

% of total within group

Cost

(R’000)

Average cost per employee

African Male 43 290 14.8% 476 11 070 Female 36 317 11.4% 340 9 444 Asian Male 0 0 0% 0 0 Female 0 0 0% 0 0 Coloured Male 4 10 40% 49 12 250 Female 4 17 23.5% 50 1 206 White Male 9 21 42.9% 311 34 555 Female 29 58 50% 520 17 931TOTAL 126 728 17.3% 1 751 13 896

Table 3.8.2 Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2013 to 31 March 2014

Salary band

BeneficiaryProfile Cost Total cost as a % of the total personnel expenditureNumber of

beneficiariesNumber of employees

% of total within salary bands

Total Cost (R’000)


Lower Skilled

(Levels 1-2)

7 93 7.5% 24 3 429 0.01%

Skilled

(level 3-5)

24 321 7.5% 133 5 542 0.08%

Highly skilled production

(level 6-8)

46 176 26.1% 407 8 848 0.23%

Highly skilled supervi-sion

(level 9-12)

43 104 41.3% 779 18 116 0.45%

Contract

(Levels 1-2)

0 10 0% 0 0 0%

Contract

(Levels 6-8)

3 3 100% 31 10 333 0.02%

Contract

(Levels 9-12)

0 1 0% 0 0 0%

Periodical remuneration 0 15 0% 0 0 0%

Total 123 723 17% 1 374 11 171 0.78%

107


ANNUAL REPORT 2013/2014Table 3.8.3 Performance Rewards by critical occupation for the period 1 April 2013 to 31 March 2014

Critical occupation

BeneficiaryProfile CostNumber of ben-

eficiariesNumber of employees

% of total within occu-

pation

Total Cost

(R’000)


Administrative related, Perma-nent

19 43 44.2% 359 18 895

Archivists curators and related professionals, Permanent

6 17 35.3% 62 10 333

Auxiliary and related workers, Permanent

0 14 0% 0 0

Building and other property care-takers, Permanent

3 34 8.8% 10 3 333

Cleaners in offices workshops hospitals etc., Permanent

4 45 8.9% 20 5 000

Client inform clerks, Permanent 0 8 0% 0 0Communication and information related, Permanent

2 10 20% 31 15 500

Computer programmers., Perma-nent

1 3 33.3% 12 12 000

Dieticians and nutritionists, Per-manent

1 1 100% 24 24 000

Financial and related profession-als, Permanent

1 9 11.1% 26 26 000

Financial clerks and credit con-trollers, Permanent

1 14 7.1% 7 7 000

Food services aids and waiters, Permanent

0 9 0% 0 0

Head of department/chief execu-tive officer, Permanent

0 1 0% 0 0

Health sciences related, Perma-nent

1 1 100% 12 12 000

Historians and political scientists, Permanent

0 2 0% 0 0

Human resources & relate prof, Permanent

2 2 100% 24 12 000

Human resources clerks, Perma-nent

8 17 47.1% 55 6 875

Human resources related, Per-manent

5 6 83.3% 98 19 600

Information technology related, Permanent

1 1 100% 31 31 000

Language practitioners, inter-preters & other communication, Permanent

3 16 18.8% 42 14 000

Librarians and related profession-als, Permanent

2 68 2.9% 17 8 500

Library mail and related clerks, Permanent

6 133 4.5% 40 6 667

Light vehicle drivers, Permanent 1 7 14.3% 8 8 000Logistical support personnel, Permanent

0 1 0% 0 0

108



Critical occupation


Number of employees

% of total within occupation



Administrative related, Perma-nent 19 43 44.2% 359 18 895Archivists curators and related professionals, Permanent 6 17 35.3% 62 10 333Auxiliary and related workers, Permanent 0 14 0% 0 0Building and other property care-takers, Permanent 3 34 8.8% 10 3 333Cleaners in offices workshops hospitals etc., Permanent 4 45 8.9% 20 5 000Client inform clerks, Permanent 0 8 0% 0 0Communication and information related, Permanent 2 10 20% 31 15 500Computer programmers., Per-manent 1 3 33.3% 12 12 000Dieticians and nutritionists, Permanent 1 1 100% 24 24 000Financial and related profession-als, Permanent 1 9 11.1% 26 26 000Financial clerks and credit con-trollers, Permanent 1 14 7.1% 7 7 000Food services aids and waiters, Permanent 0 9 0% 0 0Head of department/chief execu-tive officer, Permanent 0 1 0% 0 0Health sciences related, Perma-nent 1 1 100% 12 12 000Historians and political scientists, Permanent 0 2 0% 0 0Human resources & relate prof, Permanent 2 2 100% 24 12 000Human resources clerks, Per-manent 8 17 47.1% 55 6 875Human resources related, Per-manent 5 6 83.3% 98 19 600Information technology related, Permanent 1 1 100% 31 31 000Language practitioners, inter-preters & other communication, Permanent 3 16 18.8% 42 14 000Librarians and related profes-sionals, Permanent 2 68 2.9% 17 8 500Library mail and related clerks, Permanent 6 133 4.5% 40 6 667Light vehicle drivers, Permanent 1 7 14.3% 8 8 000Logistical support personnel, Permanent 0 1 0% 0 0

109



Critical occupation


Number of employees

% of total within occupation



Material-recording and transport clerks, Permanent 1 9 11.1% 13 13 000Medical technicians/technolo-gists, Permanent 4 11 36.4% 61 15 250Messengers porters and deliver-ers, Permanent 1 3 33.3% 7 7 000Other administrative& related clerks and organisers, Perma-nent 20 100 20% 124 6 200Other administrative policy and related officers, Permanent 25 95 26.3% 241 9 640Other information technology personnel., Permanent 3 11 27.3% 34 11 333Other occupations, Permanent 0 5 0% 0 0Quantity surveyors & related prof. not class. elsewhere, Per-manent 0 1 0% 0 0Risk management and security services, Permanent 0 2 0% 0 0Secretaries & other keyboard op-erating clerks, Permanent 2 5 40% 16 8 000Security officers, Permanent 0 5 0% 0 0Senior managers, Permanent 3 18 16.7% 377 125 667Social sciences related, Perma-nent 0 1 0% 0 0TOTAL 126 728 17.3% 1751 13 897

Table 3.8.4 Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2013 to 31 March 2014

Salary band

BeneficiaryProfile Cost Total cost as a % of the total personnel expenditureNumber of

beneficiariesNumber of employees

% of total within salary bands



Band A 3 14 21.4% 377 125 667 2.8%Band B 0 4 0% 0 0 0%Band C 0 0 0% 0 0 0%Band D 0 2 0% 0 0 0%TOTAL 3 20 15% 377 125 667 2.8%

110



3.9. Foreign Workers

Table 3.9.1 Foreign workers by salary band for the period 1 April 2013 and 31 March 2014

Salary band 01 April 2013 31 March 2014 ChangeNumber % of total Number % of total Number % Change

Lower skilled 0 0% 0 0% 0 0%

Highly skilled pro-duction (Lev. 6-8)

0 0% 0 0% 0 0%

Highly skilled supervision (Lev. 9-12)

1 100% 0 0 1 100%

Contract (level 9-12)

0 0% 0 0% 0 0%

Contract (level 13-16)

0 0% 0 0% 0 0%

TOTAL 1 100% 0 0% 1 100%

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

Majoroccupation 01 April 2013 31 March 2014 ChangeNumber % of total Number % of total Number % Change

Professionals & Managers

1 100% 0 0% 1 100%

3.10. Leave utilisation

Table 3.10.1 Sick leave for the period 1 January 2013 to 31 December 2013

Salary band Total days % Days with Medical certification

Number of Employees using sick leave

% of total em-ployees using sick leave

Average days per employee

Estimated Cost (R’000)

Lower Skills

(Level 1-2)

702 87.5% 71 13.8% 10 188%

Skilled

(levels 3-5)

2 255.5 88.3% 236 45.9% 10 910%

Highly skilled production (levels 6-8)

1 102.5 85.2% 124 24.1% 9 762%

Highly skilled supervision (levels 9 -12)

427 85% 69 13.4% 6 624%

Top and Senior manage-ment

(levels 13-16)

101 92.1 11 2.1% 9 343%

Contract

(Levels 6-8)

13 100% 1 0.2% 13 12%

Contract

(Levels 9-12)

8 100% 1 0.2% 8 8%

Contract

(Levels 13-16)

1 100% 1 0.2% 1 3%

TOTAL 4 610 87.2% 514 100% 9 2 850%

111



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

Salary band Total days

% Days with Medical cer-tification

Number of Employees us-ing disability leave

% of total em-ployees using disability leave

Average days per employee

Estimated Cost (R’000)

Lower skilled (Levels 1-2)

27 100% 1 8.3% 27 8

Skilled (Levels 3-5) 307 100% 6 50% 51 146

Highly skilled produc-tion (Levels 6-8)

106 100% 4 33.3% 27 76

Highly skilled supervi-sion (Levels 9-12)

0 0% 0 0% 0 0

Senior management

(Levels 13-16)

2 100% 1 8.3% 2 8

TOTAL 442 100% 12 100% 37 238

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

Salary band Total days taken Number of Employees using annual leave

Average per employee

Lower skilled (Levels 1-2) 1 853 21 89

Skilled Levels 3-5) 6 685.6 21 314

Highly skilled production

(Levels 6-8)

4 102.52 23 179

Highly skilled supervision

(Levels 9-12)

2342 23 104

Senior management

(Levels 13-16)

394 22 18

Contract(Levels 6-8) 64 21 3



TOTAL 15 488.12 22 711

112



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

Salary band Total days of capped leave taken

Number of Employees using capped leave

Average number of days taken per employee

Average capped leave per employee as on 31 March 2014

Lower skilled (Levels 1-2) 0 0 0 0Skilled Levels 3-5) 9 2 5 22Highly skilled production (Levels 6-8)

3 2 2 26

Highly skilled supervision(Levels 9-12)

7 3 2 57

Senior management (Levels 13-16)

0 0 0 0

TOTAL 19 7 3 33

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

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

Reason Total amount (R’000)

Number of employees Average per employee (R’000)

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

0 0 0

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

9 1 9 000

Current leave pay-out on termination of ser-vice for 2013/14

0 15 0

TOTAL 9 16 563

3.11. HIV/AIDS & Health Promotion Programmes

Table 3.11.1 Steps taken to reduce the risk of occupational exposure

Units/categoriesofemployeesidentified

to be at high risk of contracting HIV &

related diseases (if any)

Key steps taken to reduce the risk

113



Table 3.11.2 Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and pro-vide the required information)

Question Yes No Details, if yes1. Has the department designated a member of the SMS to implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position.

X

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

X X Only one official and no budget

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

X Counselling and referral services, Health promotion, life skills

4. Has the department established (a) committee(s) as contemplated in Part VI E.5 (e) of Chapter 1 of the Public Service Regula-tions, 2001? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent.

X

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 em-ployment policies/practices so reviewed.

X In process

6. Has the department introduced measures to protect HIV-positive employees or those per-ceived to be HIV-positive from discrimination? If so, list the key elements of these measures.

X Policy not approved yet

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

X Policy not approved yet

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

X

3.12. Labour Relations

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

Total number of Collective agreements 0

114



Table 3.12.2 Misconduct and disciplinary hearings finalised for the period 1 April 2013 and 31 March 2014

TotalnumberofDisciplinaryhearingsfinalised 11

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

Type of misconduct Number % of totalMisuse of government vehicle 2 40%Harassment 2 40%Insolence 1 20%TOTAL 5 100%

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

Grievances Number % of TotalNumber of grievances resolved 18 78.3%Number of grievances not resolved 5 21.7%Total number of grievances lodged 23 100%

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

Disputes Number % of TotalNumber of disputes upheld 1 50%Number of disputes dismissed 1 50%Total number of disputes lodged 2 100%

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

Total number of persons working days lost N/ATotal costs working days lost

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

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

Number of people suspended 1Number of people whose suspension exceeded 30 days 1Average number of days suspended 9 months 19 daysCost of suspension (R’000) R279 420

115



3.13. Skills development

Table 3.13.1 Training needs identified for the period 1 April 2013 and 31 March 2014

Occupational category Gender Number of employees as at 1 April 2013

TrainingneedsidentifiedatstartofthereportingperiodLearner-ships

Skills Programmes & other short courses

Other forms of training

Total

Legislators, senior of-ficials and managers

Female 6 0 11 0 11Male 15 0 8 0 8

Professionals Female 79 0 52 0 52Male 53 0 26 1 27

Technicians and associ-ate professionals

Female 59 0 28 0 28Male 86 0 26 0 26

Clerks Female 168 0 69 0 69Male 97 0 28 0 28

Service and sales work-ers

Female 2 0 12 0 12Male 5 0 19 0 19

Skilled agriculture and fishery workers

Female 0 0 0 0 0Male 0 0 0 0 0

Craft and related trades workers

Female 0 0 0 0 0Male 0 0 0 0 0

Plant and machine op-erators and assemblers

Female 0 0 6 0 6Male 7 0 6 0 6

Elementary occupations Female 53 0 10 0 10Male 41 0 2 0 2

Subtotal Female 381 0 0 0 0Male 314 0 0 0 0

TOTAL 695 0 303 1 304

116



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

Occupational cat-egory

Gender Number of em-ployees as at 1 April 2013

Training provided within the reporting periodLearnerships Skills Programmes &

other short coursesOther forms of training

Total

Legislators, senior officials and manag-ers

Female 6 0 9 0 9Male 15 0 15 0 15

Professionals Female 79 0 23 0 23Male 53 0 13 0 13

Technicians and associate profes-sionals

Female 59 0 7 0 13Male 86 0 6 0 6

Clerks Female 168 0 14 0 14Male 97 0 3 0 3

Service and sales workers

Female 2 0 25 0 25Male 5 0 15 0 15

Skilled agriculture and fishery workers

Female 0 0 0 0 0Male 0 0 0 0 0

Craft and related trades workers

Female 0 0 0 0 0Male 0 0 0 0 0

Plant and machine operators and as-semblers

Female 0 0 0 0 0Male 7 0 0 0 0

Elementary occupa-tions

Female 53 0 0 0 0Male 41 0 2 0 2

Sub Total Female 381 0 78 0 78Male 314 0 54 0 54

TOTAL 695 0 132 0 132

3.14. Injury on duty

Table 3.14.1 Injury on duty for the period 1 April 2013 and 31 March 2014

Nature of injury on duty Number % of totalRequired basic medical attention only N/ATemporary Total Disablement

Permanent Disablement

Fatal

Total

117



3.15. Utilisation of Consultants

Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2013 and 31 March 2014

Total number of projects

Total individual consultants Total duration

Work days

Total contract value in Rand



Work days


Table 3.15.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Dis-advantaged Individuals (HDIs) for the period 1 April 2013 and 31 March 2014

Projecttitle Percentage ownership by HDI groups

Percentage management by HDI groups

Number of consultants from HDI groups that work

ontheproject

Table 3.15.3 Report on consultant appointments using Donor funds for the period 1 April 2013 and 31 March 2014

Projecttitle Total Number of consultants thatworkedonproject

Duration

(Work days)

Donor and contract value in Rand



Work days


118



PART EFINANCIAL INFORMATION

119


REPORT OF THE AUDITOR-GENERAL for the year ended 31 March 2014

REPORT OF THE AUDITOR-GENERAL TO THE FREE STATE LEGISLATURE ON VOTE NO. 12: DEPARTMENT OF SPORT, ARTS, CULTURE AND RECREATION

REPORT ON THE FINANCIAL STATEMENTS

Introduction

1. I have audited the financial statements of the Department of Sport, Arts, Culture and Recreation set out on pages 122 to 173, which comprise the appropriation statement,the statement of financial posi-tion as at 31 March 2014, the statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, as well as the notes, comprising a summary of sig-nificant accounting policies and other explanatory information.

Accountingofficer’sresponsibilityforthefinancialstatements

2. The accounting officer is responsible for the preparation and fair presentation of these financial state-ments in accordance with the Modified Cash Standard (MCS), 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, 2013 (Act No. 2 of 2013) (DoRA), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-general’s responsibility

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

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

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

120



Opinion

6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Department of Sport, Arts, Culture and Recreation as at 31 March 2014 and its financial perfor-mance and cash flows for the year then ended, in accordance with the MCS and the requirements of the PFMA and DoRA.

Emphasis of matters

7. I draw attention to the matters below. My opinion is not modified in respect of these matters:

Financial sustainability

8. The accounting officer’s report on page 10 indicates that the department had uncertainties regarding its financial sustainability at 31 March 2014. The impact of infrastructure expenditure, which resulted in increased accruals at year-end and also significant commitments for the following financial year, as disclosed in notes 20 and 19 respectively, along with other matters as set forth in the accounting officer’s report, indicate material uncertainties related to events or conditions that may cast significant doubt on the department’s ability to meet its financial obligations as they fall due and achievement of service delivery as outlined in the annual performance plan.

Irregular expenditure

9. As disclosed in note 23 to the financial statements, the department incurred irregular expendture of R1 111 000 (2013: R2 380 000) during the year under review, due to non-compliance with supply chain requirements.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

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

Predeterminedobjectives

11. I performed procedures to obtain evidence about the usefulness and reliability of the reported perfor-mance information for the following selected programmes presented in the annual performance report of the department for the year ended 31 March 2014:

• Programme 2: cultural affairs, on pages 43 to 49 and 64

• Programme 4: sport and recreation, on pages 54 to 60 and 66-67

121



12. I evaluated the reported performance information against the overall criteria of usefulness and reli-ability.

13. I evaluated the usefulness of the reported performance information to determine whether it was sent-ed in accordance with the National Treasury’s annual reporting principles and whether the reported performance was consistent with the planned programmes. I further performed tests to determine whether indicators and targets were well defined, verifiable, specific, measurable, time bound and relevant, as required by the National Treasury’s Framework for managing programme performance information.

14. I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

15. I did not raise any material findings on the usefulness and reliability of the reported performance in-formation for the selected programmes.

Additional matter

16. Although I raised no material findings on the usefulness and reliability of the reported performance information for the selected programmes, I draw attention to the following matter:

Achievement of planned targets

17. Refer to the annual performance report on pages 43 to 67 for information on the achievement of planned targets for the year.

Compliance with legislation

18. I performed procedures to obtain evidence that the department had complied with applicable legisla-tion regarding financial matters, financial management and other related matters. I did not identify any instances of material non-compliance with specific matters in key legislation, as set out in the general notice issued in terms of the PAA.

Internal control

19. I considered internal control relevant to my audit of the financial statements, annual performance re-port and compliance with legislation. I did not identify any significant deficiencies in internal control.

Bloemfontein

31 July 2014

122


APPROPRIATION STATEMENT for the year ended 31 March 2014

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1. Detail of transfers and subsidies as per Appropriation Act (after Virement):

Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notesand 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 FinancialStatements.

3. Detail on payments for financial assets

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

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

4.1 Per programme FinalAppropriation

ActualExpenditure

Variance Variance as a% of Final

AppropriationR’000 R’000 R’000 %

Cultural Affairs 127 409 127 300 109 -

Mainly due to a Braille machine which was ordered but only delivered after 31 March 2014.

Library and Archive Services 122 085 115 902 6 183 5%

The bulk of the underspending is due to infrastructure projects that were not completed as a result of lateappointment of contractors.

Sport and Recreation 233 351 230 690 2 661 1%.The bulk of the underspending is due to Infrastructure projects that were not completed as a result of lateappointment of contractors as well as allocations through the Special Adjustment Budget duringMarch 2014 (R2.122 million not spent out of the R5 million allocated).

134


APPROPRIATION STATEMENT for the year ended 31 March 2014 FS: SPORT, ARTS, CULTURE AND RECREATION

VOTE 12

NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 2014

- 15 -

4.2 Per economic classification FinalAppropriation

ActualExpenditure



Payments for capital assets

Buildings and other fixed structures 171 440 162 756 8 684 5%

The bulk of the underspending is due to Infrastructure projects that were not completed as a result of lateappointment of contractors as well as allocations through the Special Adjustment Budget March 2014(R2.122 million not spent out of the R5 million allocated).

Machinery and equipment 7 432 7 335 97 1.%

The underspending on machinery and equipment is mainly due to a Braille machine which was ordered butnot delivered by 31 March 2014.

4.3 Per conditional grant FinalAppropriation

ActualExpenditure



Community Library Services Grant 65 586 59 422 6 164 9%

The bulk of the underspending is due to Infrastructure projects that were not completed as a result of lateor non-appointment of contractors.

135


STATEMENT OF FINANCIAL PERFORMANCEfor the year ended 31 March 2014FS: SPORT, ARTS, CULTURE AND RECREATION

VOTE 12

STATEMENT OF FINANCIAL PERFORMANCEfor the year ended 31 March 2014

- 16 -

Note 2013/14 2012/13R’000 R’000

REVENUEAnnual appropriation 1 550 899 453 057Departmental revenue 2 - -

TOTAL REVENUE 550 899 453 057

EXPENDITURECurrent expenditureCompensation of employees 3 173 980 159 292Goods and services 4 154 619 154 244Interest and rent on land 5 - 372Total current expenditure 328 599 313 908

Transfers and subsidiesTransfers and subsidies 7 42 786 25 585Total transfers and subsidies 42 786 25 585

Expenditure for capital assetsTangible assets 8 170 091 104 556Intangible assets 8 12 341Total expenditure for capital assets 170 103 104 897

Payments for financial assets 6 375 947

TOTAL EXPENDITURE 541 863 445 337

SURPLUS/(DEFICIT) FOR THE YEAR 9 036 7 720

Reconciliation of Net Surplus for the yearVoted funds 9 036 7 720Annual appropriation 284 97Conditional grants 8 752 7 623

SURPLUS/(DEFICIT) FOR THE YEAR 9 036 7 720

136


STATEMENT OF FINANCIAL POSITIONas at 31 March 2014FS: SPORT, ARTS, CULTURE AND RECREATION

VOTE 12

STATEMENT OF FINANCIAL POSITIONas at 31 March 2014

- 17 -

Note 2013/14 2012/13R’000 R’000

ASSETS

Current assets 9 236 8 675Unauthorised expenditure 9 - -Cash and cash equivalents 10 7 424 5 878Prepayments and advances 11 295 1 924Receivables 12 1 517 873

TOTAL ASSETS 9 236 8 675

LIABILITIES

Current liabilities 9 171 8 462Voted funds to be surrendered to the Revenue Fund 13 9 036 7 720Departmental revenue and NRF Receipts to besurrendered to the Revenue Fund

14 130 742

Payables 15 5 -

TOTAL LIABILITIES 9 171 8 462

NET ASSETS 65 213

Represented by:Recoverable revenue 65 213

TOTAL 65 213

FS: SPORT, ARTS, CULTURE AND RECREATIONVOTEVOTE 12

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

- 18 -

Note 2013/14 2012/13R’000 R’000

Recoverable revenueOpening balance 213 484Transfers: (148) (271)

Irrecoverable amounts written off 6.2 - (399)Debts revised (106) -Debts recovered (included in departmentalreceipts)

(87) -

Debts raised 45 128

Closing balance 65 213

TOTAL 65 213

As a result of the change from the modified cash basis of accounting to the modified cash standardas basis for preparation of the Annual Financial Statements, the comparative figures were restatedby the increase in debt raised by R102 000.

137


STATEMENT OF CHANGES IN NET ASSETSfor the year ended 31 March 2014FS: SPORT, ARTS, CULTURE AND RECREATION

VOTE 12

STATEMENT OF FINANCIAL POSITIONas at 31 March 2014

- 17 -

Note 2013/14 2012/13R’000 R’000

ASSETS

Current assets 9 236 8 675Unauthorised expenditure 9 - -Cash and cash equivalents 10 7 424 5 878Prepayments and advances 11 295 1 924Receivables 12 1 517 873

TOTAL ASSETS 9 236 8 675

LIABILITIES

Current liabilities 9 171 8 462Voted funds to be surrendered to the Revenue Fund 13 9 036 7 720Departmental revenue and NRF Receipts to besurrendered to the Revenue Fund

14 130 742

Payables 15 5 -

TOTAL LIABILITIES 9 171 8 462

NET ASSETS 65 213

Represented by:Recoverable revenue 65 213

TOTAL 65 213

FS: SPORT, ARTS, CULTURE AND RECREATIONVOTEVOTE 12

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

- 18 -

Note 2013/14 2012/13R’000 R’000

Recoverable revenueOpening balance 213 484Transfers: (148) (271)

Irrecoverable amounts written off 6.2 - (399)Debts revised (106) -Debts recovered (included in departmentalreceipts)

(87) -

Debts raised 45 128

Closing balance 65 213

TOTAL 65 213

As a result of the change from the modified cash basis of accounting to the modified cash standardas basis for preparation of the Annual Financial Statements, the comparative figures were restatedby the increase in debt raised by R102 000.

138


CASH FLOW STATEMENT for the year ended 31 March 2014 FS: SPORT, ARTS, CULTURE AND RECREATION

VOTE 12

CASH FLOW STATEMENTfor the year ended 31 March 2014

- 19 -

Note 2013/14 2012/13R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIESReceipts 566 624 468 909Annual appropriated funds received 1.1 550 899 453 057Departmental revenue received 2 15 629 15 398Interest received 2.3 96 454

Net decrease in working capital 990 4 295Surrendered to Revenue Fund (24 061) (35 884)Current payments (328 599) (313 536)Interest paid - (372)Payments for financial assets (375) (947)Transfers and subsidies paid (42 786) (25 585)Net cash flow available from operating activities 16 171 793 96 880

CASH FLOWS FROM INVESTING ACTIVITIESPayments for capital assets 8 (170 103) (104 897)Proceeds from sale of capital assets 2.4 4 3Net cash flows from investing activities (170 099) (104 894)

CASH FLOWS FROM FINANCING ACTIVITIESIncrease/(decrease) in net assets (148) (373)Net cash flows from financing activities (148) (373)

Net increase/(decrease) in cash and cash equivalents 1 546 (8 387)

Cash and cash equivalents at beginning of period 5 878 14 265

Cash and cash equivalents at end of period 17 7 424 5 878


ACCOUNTING POLICIESfor the year ended 31 March 2014

- 20 -

Summary of significant accounting policies

The financial statements have been prepared in accordance with the following policies, which have beenapplied consistently in all material aspects, unless otherwise indicated.The historical cost convention has been used, except where otherwise indicated. Management hasused assessments and estimates in preparing the annual financial statements. These are based on thebest information available at the time of preparation.Where appropriate and meaningful, additional information has been disclosed to enhance the usefulnessof the financial statements and to comply with the statutory requirements of the Public FinanceManagement Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulationsissued in terms of the PFMA and the annual Division of Revenue Act.

1 Basis of preparationThe financial statements have been prepared in accordance with the Modified Cash Standard.

2 Going concernThe financial statements have been prepared on a going concern basis.

3 Presentation currencyAmounts have been presented in the currency of the South African Rand (R) which is also thefunctional currency of the department.

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

5 Current year comparison with budgetA comparison between the approved, final budget and actual amounts for each programme andeconomic classification is included in the appropriation statement.

6 Revenue

6.1 Appropriated fundsAppropriated funds comprises of departmental allocations as well as direct charges against therevenue fund (i.e. statutory appropriation).Appropriated funds are recognised in the statement of financial performance on the date theappropriation becomes effective. Adjustments made in terms of the adjustments budgetprocess are recognised in the statement of financial performance on the date the adjustmentsbecome effective.The net amount of any appropriated funds due to / from the provincial revenue fund at thereporting date is recognised as a payable / receivable in the statement of financial position.

6.2 Departmental revenueDepartmental revenue is recognised in the statement of financial performance when receivedand is subsequently paid into the provincial revenue fund, unless stated otherwise.Any amount owing to the provincial revenue fund at the reporting date is recognised as apayable in the statement of financial position.

139


ACCOUNTING POLICIES for the year ended 31 March 2014FS: SPORT, ARTS, CULTURE AND RECREATION

VOTE 12

CASH FLOW STATEMENTfor the year ended 31 March 2014

- 19 -

Note 2013/14 2012/13R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIESReceipts 566 624 468 909Annual appropriated funds received 1.1 550 899 453 057Departmental revenue received 2 15 629 15 398Interest received 2.3 96 454

Net decrease in working capital 990 4 295Surrendered to Revenue Fund (24 061) (35 884)Current payments (328 599) (313 536)Interest paid - (372)Payments for financial assets (375) (947)Transfers and subsidies paid (42 786) (25 585)Net cash flow available from operating activities 16 171 793 96 880

CASH FLOWS FROM INVESTING ACTIVITIESPayments for capital assets 8 (170 103) (104 897)Proceeds from sale of capital assets 2.4 4 3Net cash flows from investing activities (170 099) (104 894)

CASH FLOWS FROM FINANCING ACTIVITIESIncrease/(decrease) in net assets (148) (373)Net cash flows from financing activities (148) (373)

Net increase/(decrease) in cash and cash equivalents 1 546 (8 387)

Cash and cash equivalents at beginning of period 5 878 14 265

Cash and cash equivalents at end of period 17 7 424 5 878



- 20 -

Summary of significant accounting policies

The financial statements have been prepared in accordance with the following policies, which have beenapplied consistently in all material aspects, unless otherwise indicated.The historical cost convention has been used, except where otherwise indicated. Management hasused assessments and estimates in preparing the annual financial statements. These are based on thebest information available at the time of preparation.Where appropriate and meaningful, additional information has been disclosed to enhance the usefulnessof the financial statements and to comply with the statutory requirements of the Public FinanceManagement Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulationsissued in terms of the PFMA and the annual Division of Revenue Act.

1 Basis of preparationThe financial statements have been prepared in accordance with the Modified Cash Standard.

2 Going concernThe financial statements have been prepared on a going concern basis.

3 Presentation currencyAmounts have been presented in the currency of the South African Rand (R) which is also thefunctional currency of the department.

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

5 Current year comparison with budgetA comparison between the approved, final budget and actual amounts for each programme andeconomic classification is included in the appropriation statement.

6 Revenue

6.1 Appropriated fundsAppropriated funds comprises of departmental allocations as well as direct charges against therevenue fund (i.e. statutory appropriation).Appropriated funds are recognised in the statement of financial performance on the date theappropriation becomes effective. Adjustments made in terms of the adjustments budgetprocess are recognised in the statement of financial performance on the date the adjustmentsbecome effective.The net amount of any appropriated funds due to / from the provincial revenue fund at thereporting date is recognised as a payable / receivable in the statement of financial position.

6.2 Departmental revenueDepartmental revenue is recognised in the statement of financial performance when receivedand is subsequently paid into the provincial revenue fund, unless stated otherwise.Any amount owing to the provincial revenue fund at the reporting date is recognised as apayable in the statement of financial position.

140


ACCOUNTING POLICIES for the year ended 31 March 2014 FS: SPORT, ARTS, CULTURE AND RECREATION

VOTE 12


- 21 -

6.3 Accrued departmental revenueAccruals in respect of departmental revenue (excluding tax revenue) are recorded in the notesto the financial statements when: it is probable that the economic benefits or service potential associated with the transaction

will flow to the department; and the amount of revenue can be measured reliably.The accrued revenue is measured at the fair value of the consideration receivable.Accrued tax revenue (and related interest and / penalties) is measured at amounts receivablefrom collecting agents.

7 Expenditure

7.1 Compensation of employees

7.1.1 Salaries and wagesSalaries and wages are recognised in the statement of financial performance on the date ofpayment.

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

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

7.3 Accrued expenditure payableAccrued expenditure payable is recorded in the notes to the financial statements when thegoods are received or, in the case of services, when they are rendered to the department.Accrued expenditure payable is measured at cost.

7.4 Leases

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

7.4.2 Finance leasesFinance lease payments made during the reporting period are recognised as capital expenditurein the statement of financial performance on the date of payment.The finance lease commitments are recorded in the notes to the financial statements and arenot apportioned between the capital and interest portions.



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Finance lease assets acquired at the end of the lease term are recorded and measured at thelower of: cost, being the fair value of the asset; or the sum of the minimum lease payments made, including any payments made to acquire

ownership at the end of the lease term, excluding interest.

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

9 Prepayments and advancesPrepayments and advances are recognised in the statement of financial position when thedepartment receives or disburses the cash.Prepayments and advances are initially and subsequently measured at cost.Prepayments and advances are expensed when the goods and services are delivered andinvoices/claims submitted.

10 ReceivablesReceivables are recognised in the statement of financial position at cost plus accrued interest,where interest is charged, less amounts already settled or written-off.

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

12 PayablesPayables are recognised in the statement of financial position at cost.

13 Capital Assets

13.1 Immovable capital assetsImmovable capital assets are initially recorded in the notes to the financial statements at cost.Immovable capital assets acquired through a non-exchange transaction is measured at fairvalue as at the date of acquisition.Where the cost of immovable capital assets cannot be determined accurately, the immovablecapital assets are measured at R1 unless the fair value of the asset has been reliably estimated,in which case the fair value is used.All assets acquired prior to 1 April 2005 (or a later date as approved by the OAG) are recordedat R1.Immovable capital assets are subsequently carried at cost and are not subject to depreciation orimpairment.Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end ofthe capital project unless the immovable asset is recorded by another department in which casethe completed project costs are transferred to that department.

141



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Finance lease assets acquired at the end of the lease term are recorded and measured at thelower of: cost, being the fair value of the asset; or the sum of the minimum lease payments made, including any payments made to acquire

ownership at the end of the lease term, excluding interest.

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

9 Prepayments and advancesPrepayments and advances are recognised in the statement of financial position when thedepartment receives or disburses the cash.Prepayments and advances are initially and subsequently measured at cost.Prepayments and advances are expensed when the goods and services are delivered andinvoices/claims submitted.

10 ReceivablesReceivables are recognised in the statement of financial position at cost plus accrued interest,where interest is charged, less amounts already settled or written-off.

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

12 PayablesPayables are recognised in the statement of financial position at cost.

13 Capital Assets

13.1 Immovable capital assetsImmovable capital assets are initially recorded in the notes to the financial statements at cost.Immovable capital assets acquired through a non-exchange transaction is measured at fairvalue as at the date of acquisition.Where the cost of immovable capital assets cannot be determined accurately, the immovablecapital assets are measured at R1 unless the fair value of the asset has been reliably estimated,in which case the fair value is used.All assets acquired prior to 1 April 2005 (or a later date as approved by the OAG) are recordedat R1.Immovable capital assets are subsequently carried at cost and are not subject to depreciation orimpairment.Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end ofthe capital project unless the immovable asset is recorded by another department in which casethe completed project costs are transferred to that department.

142


ACCOUNTING POLICIES for the year ended 31 March 2014



- 23 -

13.2 Movable capital assetsMovable capital assets are initially recorded in the notes to the financial statements at cost.Movable capital assets acquired through a non-exchange transaction is measured at fair valueas at the date of acquisition.Where the cost of movable capital assets cannot be determined accurately, the movable capitalassets are measured at fair value and where fair value cannot be determined; the movableassets are measured at R1.All assets acquired prior to 1 April 2005 (or a later date as approved by the OAG) are recordedat R1.Movable capital assets are subsequently carried at cost and are not subject to depreciation orimpairment.Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end ofthe capital project unless the movable asset is recorded by another department/entity in whichcase the completed project costs are transferred to that department.

13.3 Intangible assetsIntangible assets are initially recorded in the notes to the financial statements at cost. Intangibleassets acquired through a non-exchange transaction are measured at fair value as at the date ofacquisition.Internally generated intangible assets are recorded in the notes to the financial statements whenthe department commences the development phase of the project.Where the cost of intangible assets cannot be determined accurately, the intangible capitalassets are measured at fair value and where fair value cannot be determined; the intangibleassets are measured at R1.All assets acquired prior to 1 April 2005 (or a later date as approved by the OAG) are recordedat R1.Intangible assets are subsequently carried at cost and are not subject to depreciation orimpairment.Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end ofthe capital project unless the intangible asset is recorded by another department/entity in whichcase the completed project costs are transferred to that department.

14 Provisions and Contingents

14.1 Provisions

Provisions are recorded in the notes to the financial statements when there is a present legal orconstructive obligation to forfeit economic benefits as a result of events in the past and it isprobable that an outflow of resources embodying economic benefits or service potential will berequired to settle the obligation and a reliable estimate of the obligation can be made. Theprovision is measured as the best estimate of the funds required to settle the present obligationat the reporting date.

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

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

14.4 CommitmentsCommitments are recorded at cost in the notes to the financial statements when there is acontractual arrangement or an approval by management in a manner that raises a validexpectation that the department will discharge its responsibilities thereby incurring futureexpenditure that will result in the outflow of cash

15 Unauthorised expenditureUnauthorised expenditure is recognised in the statement of financial position until such time asthe expenditure is either: approved by the Provincial Legislature with funding and the related funds are received; or approved by the Provincial Legislature without funding and is written off against the

appropriation in the statement of financial performance; or transferred to receivables for recovery.Unauthorised expenditure is measured at the amount of the confirmed unauthorisedexpenditure.

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

17 Irregular expenditureIrregular expenditure is recorded in the notes to the financial statements when confirmed. Theamount recorded is equal to the value of the irregular expenditure incurred unless it isimpracticable to determine, in which case reasons therefore are provided in the note.Irregular expenditure is removed from the note when it is either condoned by the relevantauthority, transferred to receivables for recovery or not condoned and is not recoverable.Irregular expenditure receivables are measured at the amount that is expected to berecoverable and are de-recognised when settled or subsequently written-off as irrecoverable.

144


ACCOUNTING POLICIES for the year ended 31 March 2014



- 25 -

18 Prior period errorsWith the calculation of capital commitments, the following errors were made:

- Commitments approved and contracted were not increased with retention in paymentsfor infrastructure projects

- The capital expenditure commitments over a period of three years were limited tocommitments approved but not yet contracted and did not include contractedcommitments.

The errors do not have any impact on the voted funds to be surrendered to the Revenue Funds.See note 19 for more detail.Comparitive figures are restated for prior period errors and disclosed in the relevant notes.

19 Agent-Principal arrangementsAgent-principal agreements are disclosed where the department has agency-principalrelationships where goods and services such as travelling arrangements, event managementand infrastructure project management are rendered by the agents with the department as theprincipal. The terms vary from agent to agent and are disclosed in note 29 in more detail.

145


NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014

1. Annual Appropriation

1.1 Annual AppropriationIncluded are funds appropriated in terms of the Appropriation Act (and the Adjustments AppropriationAct) for National Departments (Voted funds) and Provincial Departments:

2013/14 2012/13

FinalAppropriation

Actual FundsReceived

Funds notrequested/

not received

Appropriationreceived

R’000 R’000 R’000 R’000

Administration 68 054 68 054 - 67 332

Cultural Affairs 127 409 127 409 - 147 699

Library and ArchiveServices

122 085 122 085 - 104 098

Sport & Recreation 233 351 233 351 - 133 928

Total 550 899 550 899 - 453 057

1.2 Conditional grants

Note 2013/14 2012/13R’000 R’000

Total grants received 30 272 255 179 798

Provincial grants included in Total Grants received 167 287 91 488

(It should be noted that the Conditional grants are included in the amount per the Final Appropriationin Note 1.1)

146


NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 FS: SPORT, ARTS, CULTURE AND RECREATION

VOTE 12

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

- 27 -

2. Departmental revenueNote 2013/14 2012/13

R’000 R’000

Sales of goods and services other than capital assets 2.1 9 508 8 813Fines, penalties and forfeits 2.2 32 29Interest, dividends and rent on land 2.3 96 454Sales of capital assets 2.4 4 3Transactions in financial assets and liabilities 2.5 198 536Transfer received 2.6 5 891 6 020Total revenue collected 15 729 15 855Less: Own revenue included in appropriation 14 15 729 15 855Departmental revenue collected - -

Included in Departmental Revenue are the following received from the Department of Arts and Culture tobe ring-fenced for the 2014/15 Budget:

R’000MACUFE Development Programme 2 000Mine dance 500

2.1 Sales of goods and services other than capital assets

Sales of goods and services produced by the department 9 508 8 811Sales by market establishment 9 508 8 811Sale of scrap, waste and other used current goods - 2

Total 2 9 508 8 813

2.2 Fines, penalties and forfeits

Penalties 32 29Total 2 32 29

2.3 Interest, dividends and rent on land

Interest 96 454Total 2 96 454

2.4 Sale of capital assets

Tangible assets 4 3Machinery and equipment 4 3

Total 26 4 3



- 28 -

2.5 Transactions in financial assets and liabilities

Note 2013/14 2012/13R’000 R’000

Receivables - 500Stale cheques written back 6 -Other Receipts including Recoverable Revenue 192 36Total 2 198 536

2.6 Transfers received

Other governmental units 2 500 4 000Public corporations and private enterprises 3 391 2 020Total 2 5 891 6 020

3. Compensation of employees3.1 Salaries and Wages

Basic salary 121 310 109 687Performance award 1 739 1 467Service Based 200 255Compensative/circumstantial 1 637 1 509Other non-pensionable allowances 22 423 21 731Total 147 309 134 649

3.2 Social contributions

Employer contributionsPension 15 808 14 187Medical 10 822 10 419Bargaining council 41 37Total 26 671 24 643

Total compensation of employees 173 980 159 292

Average number of employees 710 706

147


NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014FS: SPORT, ARTS, CULTURE AND RECREATION

VOTE 12


- 27 -

2. Departmental revenueNote 2013/14 2012/13

R’000 R’000

Sales of goods and services other than capital assets 2.1 9 508 8 813Fines, penalties and forfeits 2.2 32 29Interest, dividends and rent on land 2.3 96 454Sales of capital assets 2.4 4 3Transactions in financial assets and liabilities 2.5 198 536Transfer received 2.6 5 891 6 020Total revenue collected 15 729 15 855Less: Own revenue included in appropriation 14 15 729 15 855Departmental revenue collected - -

Included in Departmental Revenue are the following received from the Department of Arts and Culture tobe ring-fenced for the 2014/15 Budget:

R’000MACUFE Development Programme 2 000Mine dance 500

2.1 Sales of goods and services other than capital assets

Sales of goods and services produced by the department 9 508 8 811Sales by market establishment 9 508 8 811Sale of scrap, waste and other used current goods - 2

Total 2 9 508 8 813

2.2 Fines, penalties and forfeits

Penalties 32 29Total 2 32 29

2.3 Interest, dividends and rent on land

Interest 96 454Total 2 96 454

2.4 Sale of capital assets

Tangible assets 4 3Machinery and equipment 4 3

Total 26 4 3



- 28 -

2.5 Transactions in financial assets and liabilities

Note 2013/14 2012/13R’000 R’000

Receivables - 500Stale cheques written back 6 -Other Receipts including Recoverable Revenue 192 36Total 2 198 536

2.6 Transfers received

Other governmental units 2 500 4 000Public corporations and private enterprises 3 391 2 020Total 2 5 891 6 020

3. Compensation of employees3.1 Salaries and Wages

Basic salary 121 310 109 687Performance award 1 739 1 467Service Based 200 255Compensative/circumstantial 1 637 1 509Other non-pensionable allowances 22 423 21 731Total 147 309 134 649

3.2 Social contributions

Employer contributionsPension 15 808 14 187Medical 10 822 10 419Bargaining council 41 37Total 26 671 24 643

Total compensation of employees 173 980 159 292

Average number of employees 710 706

148



VOTE 12


- 29 -

4. Goods and services

Note 2013/14 2012/13R’000 R’000

Administrative fees 5 214 6 226Advertising 2 399 5 084Minor assets 4.1 12 241 7 025Bursaries (employees) 201 196Catering 2 797 2 957Communication 4 879 3 174Computer services 4.2 8 851 9 986Consultants, contractors and agency/outsourced services 4.3 51 880 62 140Entertainment 62 63Audit cost – external 4.4 3 221 3 197Fleet services 4 199 3 263Inventory 4.5 7 703 5 845Consumables 4.6 7 513 8 764Operating leases 4 902 3 712Property payments 4.7 8 498 8 891Rental and hiring 85 -Transport provided as part of the departmental activities 6 778 5 430Travel and subsistence 4.8 19 452 16 856Venues and facilities 1 656 516Training and development 450 236Other operating expenditure 4.9 1 638 683Total 154 619 154 244

As a result of reclassification of expenditure from inventory to consumables, the comparative figures forthe following items were restated as follows:

R’000

Inventory 8 751 decreaseConsumables 8 763 increaseOther operating expenditure 12 decrease

As a result of reclassification of Government Garage vehicle expenditure, comparative figures wererestated as follows:

R’000

Travelling and Subsistence 3 263 decreaseFleet Services 3 263 increase



- 30 -

4.1 Minor assets

Note 2013/14 2012/13R’000 R’000

Tangible assets 12 075 7 025Heritage assets 73 -Machinery and equipment 12 002 7 025

Intangible assets 166 -Total 4 12 241 7 025

4.2 Computer services

SITA computer services 7 170 8 788External computer service providers 1 681 1 198Total 4 8 851 9 986

4.3 Consultants, contractors and agency/outsourced services

Business and advisory services 484 294Legal costs - 244Contractors 50 098 60 566Agency and support/outsourced services 1 298 1 036Total 4 51 880 62 140

4.4 Audit cost – External

Regularity audits 3 221 2 595Investigations - 602Total 4 3 221 3 197

4.5 Inventory

Clothing material and accessories 3 910 3 393Food and food supplies 187 539Fuel, oil and gas - 51Learning, teaching and support material - 1 741Materials and supplies 3 606 121Total 4 7 703 5 845

149



VOTE 12


- 29 -

4. Goods and services

Note 2013/14 2012/13R’000 R’000

Administrative fees 5 214 6 226Advertising 2 399 5 084Minor assets 4.1 12 241 7 025Bursaries (employees) 201 196Catering 2 797 2 957Communication 4 879 3 174Computer services 4.2 8 851 9 986Consultants, contractors and agency/outsourced services 4.3 51 880 62 140Entertainment 62 63Audit cost – external 4.4 3 221 3 197Fleet services 4 199 3 263Inventory 4.5 7 703 5 845Consumables 4.6 7 513 8 764Operating leases 4 902 3 712Property payments 4.7 8 498 8 891Rental and hiring 85 -Transport provided as part of the departmental activities 6 778 5 430Travel and subsistence 4.8 19 452 16 856Venues and facilities 1 656 516Training and development 450 236Other operating expenditure 4.9 1 638 683Total 154 619 154 244

As a result of reclassification of expenditure from inventory to consumables, the comparative figures forthe following items were restated as follows:

R’000

Inventory 8 751 decreaseConsumables 8 763 increaseOther operating expenditure 12 decrease

As a result of reclassification of Government Garage vehicle expenditure, comparative figures wererestated as follows:

R’000

Travelling and Subsistence 3 263 decreaseFleet Services 3 263 increase



- 30 -

4.1 Minor assets

Note 2013/14 2012/13R’000 R’000

Tangible assets 12 075 7 025Heritage assets 73 -Machinery and equipment 12 002 7 025

Intangible assets 166 -Total 4 12 241 7 025

4.2 Computer services

SITA computer services 7 170 8 788External computer service providers 1 681 1 198Total 4 8 851 9 986

4.3 Consultants, contractors and agency/outsourced services

Business and advisory services 484 294Legal costs - 244Contractors 50 098 60 566Agency and support/outsourced services 1 298 1 036Total 4 51 880 62 140

4.4 Audit cost – External

Regularity audits 3 221 2 595Investigations - 602Total 4 3 221 3 197

4.5 Inventory

Clothing material and accessories 3 910 3 393Food and food supplies 187 539Fuel, oil and gas - 51Learning, teaching and support material - 1 741Materials and supplies 3 606 121Total 4 7 703 5 845

150



VOTE 12


- 31 -

4.6 ConsumablesNote 2013/14 2012/13

R’000 R’000

Consumable supplies 1 663 5 555Uniform and clothing 57 53Household supplies 942 -Building material and supplies 36 -Communication accessories 1 -IT consumables 329 603Other consumables 298 4 899

Stationery, printing and office supplies 5 850 3 209

Total 4 7 513 8 764

4.7 Property payments

Municipal services 223 214Property maintenance and repairs 4 519 5 517Other 3 756 3 160Total 8 498 8 891

4.8 Travel and subsistence

Local 19 292 15 977Foreign 160 879Total 4 19 452 16 856

4.9 Other operating expenditure

Professional bodies, membership and subscription fees 166 9Resettlement costs 72 17Other 1 400 657Total 4 1 638 683

5. Interest and rent on land

Interest paid - 372Total - 372

6. Payments for financial assets

Other material losses written off 6.1 - 44Debts written off 6.2 375 903Total 375 947



- 32 -

6.1 Other material losses written offNote 2013/14 2012/13

R’000 R’000Nature of losses

Petty Cash taken over with integration of entities - 7SARS – Payment of interest - 37Total 6 - 44

6.2 Debts written off

Nature of debts written off

Recoverable revenue written off - 399Recoverable revenue written off 6 - 399

Other debts written off

Staff debt written off 375 903Total debt written off 6 375 903

375 1 302

7. Transfers and subsidies

Provinces and municipalities 31, Annex 1A 13 103 1 730Non-profit institutions Annex 1G 29 249 20 220Households Annex 1H 434 3 635Total 42 786 25 585

8. Expenditure for capital assets

Tangible assets 170 091 104 556Buildings and other fixed structures 28 162 756 90 279Heritage assets 26 - 49Machinery and equipment 26 7 335 14 228

Intangible assets 12 341Software 27 12 341

Total 170 103 104 897The following amounts have been included as projectcosts in Expenditure for capital assets:

Goods and services 162 756 90 279Total 162 756 90 279

151



VOTE 12


- 31 -

4.6 ConsumablesNote 2013/14 2012/13

R’000 R’000

Consumable supplies 1 663 5 555Uniform and clothing 57 53Household supplies 942 -Building material and supplies 36 -Communication accessories 1 -IT consumables 329 603Other consumables 298 4 899

Stationery, printing and office supplies 5 850 3 209

Total 4 7 513 8 764

4.7 Property payments

Municipal services 223 214Property maintenance and repairs 4 519 5 517Other 3 756 3 160Total 8 498 8 891

4.8 Travel and subsistence

Local 19 292 15 977Foreign 160 879Total 4 19 452 16 856

4.9 Other operating expenditure

Professional bodies, membership and subscription fees 166 9Resettlement costs 72 17Other 1 400 657Total 4 1 638 683

5. Interest and rent on land

Interest paid - 372Total - 372

6. Payments for financial assets

Other material losses written off 6.1 - 44Debts written off 6.2 375 903Total 375 947



- 32 -

6.1 Other material losses written offNote 2013/14 2012/13

R’000 R’000Nature of losses

Petty Cash taken over with integration of entities - 7SARS – Payment of interest - 37Total 6 - 44

6.2 Debts written off

Nature of debts written off

Recoverable revenue written off - 399Recoverable revenue written off 6 - 399

Other debts written off

Staff debt written off 375 903Total debt written off 6 375 903

375 1 302

7. Transfers and subsidies

Provinces and municipalities 31, Annex 1A 13 103 1 730Non-profit institutions Annex 1G 29 249 20 220Households Annex 1H 434 3 635Total 42 786 25 585

8. Expenditure for capital assets

Tangible assets 170 091 104 556Buildings and other fixed structures 28 162 756 90 279Heritage assets 26 - 49Machinery and equipment 26 7 335 14 228

Intangible assets 12 341Software 27 12 341

Total 170 103 104 897The following amounts have been included as projectcosts in Expenditure for capital assets:

Goods and services 162 756 90 279Total 162 756 90 279

152



VOTE 12


- 33 -

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

VotedFunds

Aidassistance

Total

R’000 R’000 R’000

Tangible assets 170 091 - 170 091Buildings and other fixed structures 162 756 - 162 756Machinery and equipment 7 335 - 7 335

Intangible assets 12 - 12Software 12 - 12

Total 170 103 - 170 103


Tangible assets 104 556 - 104 556Buildings and other fixed structures 90 279 - 90 279Heritage assets 49 - 49Machinery and equipment 14 228 - 14 228


Total 104 897 - 104 897

8.3 Finance lease expenditure included in Expenditure for capital assets

Note 2013/14R’000

Tangible assets 412Machinery and equipment 412

Total 412

153



VOTE 12


- 33 -


VotedFunds

Aidassistance

Total

R’000 R’000 R’000

Tangible assets 170 091 - 170 091Buildings and other fixed structures 162 756 - 162 756Machinery and equipment 7 335 - 7 335


Total 170 103 - 170 103


Tangible assets 104 556 - 104 556Buildings and other fixed structures 90 279 - 90 279Heritage assets 49 - 49Machinery and equipment 14 228 - 14 228


Total 104 897 - 104 897

8.3 Finance lease expenditure included in Expenditure for capital assets

Note 2013/14R’000

Tangible assets 412Machinery and equipment 412

Total 412



- 34 -

9. Unauthorised expenditure

9.1 Reconciliation of unauthorised expenditure

Note 2013/14 2012/13R’000 R’000

Opening balance - 2 689Less: Amounts approved by Parliament/Legislature withfunding

-(2 689)

Unauthorised expenditure awaiting authorisation /written off - -

10. Cash and cash equivalents

Consolidated Paymaster General Account 7 319 5 783Cash on hand 105 95Total 7 424 5 878

11. Prepayments and advances

Advances paid 11 295 1 924Total 295 1 924

11.1 Advances paid

Other institutions Annexure8A, 11

295 1 924

Total 295 1 924

154





- 35 -

12. Receivables

2013/14 2012/13R’000 R’000 R’000 R’000 R’000

Note

Less thanone year

One tothreeyears

Olderthan three

yearsTotal Total

Claims recoverable 12.1Annex 4

1 072 92 - 1 164 128

Staff debt 12.2 190 157 6 353 745Total 1 262 249 6 1 517 873

As a result of the change from the modified cash basis of accounting to the modified cash standard as basisfor preparation of the Annual Financial Statements, the comparative figures were restated as follows:

R’000Staff debt 574 increaseOther debtors 472 decrease

12.1 Claims recoverableNote 2013/14 2012/13

R’000 R’000

National departments 2 1Provincial departments 1 068 34Public entities 1 1Private enterprises 93 92Total 12 1 164 128

12.2 Staff debt

Bursaries 39 121Telephone debt 23 54Salary debts 291 570Total 12 353 745

12.3 Impairment of receivables

Estimate of impairment of receivables 6 268Total 6 268

155





- 35 -

12. Receivables

2013/14 2012/13R’000 R’000 R’000 R’000 R’000

Note

Less thanone year

One tothreeyears

Olderthan three

yearsTotal Total

Claims recoverable 12.1Annex 4

1 072 92 - 1 164 128

Staff debt 12.2 190 157 6 353 745Total 1 262 249 6 1 517 873

As a result of the change from the modified cash basis of accounting to the modified cash standard as basisfor preparation of the Annual Financial Statements, the comparative figures were restated as follows:

R’000Staff debt 574 increaseOther debtors 472 decrease

12.1 Claims recoverableNote 2013/14 2012/13

R’000 R’000

National departments 2 1Provincial departments 1 068 34Public entities 1 1Private enterprises 93 92Total 12 1 164 128

12.2 Staff debt

Bursaries 39 121Telephone debt 23 54Salary debts 291 570Total 12 353 745

12.3 Impairment of receivables

Estimate of impairment of receivables 6 268Total 6 268



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13. Voted funds to be surrendered to the Revenue Fund

Note 2013/14 2012/13R’000 R’000

Opening balance 7 720 20 709Transfer from statement of financial performance 9 036 7 720Paid during the year (7 720) (20 709)

Closing balance 9 036 7 720

14. Departmental revenue to be surrendered to the Revenue Fund

Opening balance 742 62Own revenue included in appropriation 15 729 15 855Paid during the year (16 341) (15 175)Closing balance 130 742

15. Payables – current

Clearing accounts 15.1 5 -Total 5 -

15.1 Clearing accounts

Clearing accounts: Income tax 5 -Total 15 5 -

16. Net cash flow available from operating activities

Net surplus as per Statement of Financial Performance 9 036 7 720Add back non cash/cash movements not deemedoperating activities

162 757 89 160

(Increase)/decrease in receivables – current (644) 1 659(Increase)/decrease in prepayments and advances 1 629 (48)Decrease in other current assets - 2 689Increase/(decrease) in payables – current 5 (5)Proceeds from sale of capital assets (4) (3)Expenditure on capital assets 170 103 104 897Surrenders to Revenue Fund (24 061) (35 884)Own revenue included in appropriation 15 729 15 855

Net cash flow generated by operating activities 171 793 96 880

156



17. Reconciliation of cash and cash equivalents for cash flow purposes

Note 2013/14 2012/13R’000 R’000

Consolidated Paymaster General account 7 319 5 783Cash on hand 105 95Total 7 424 5 878

18. Contingent liabilities and contingent assets18.1 Contingent liabilities

Liable to Nature

Housing loan guarantees Employees Annex3A

- 13

Claims against the department Annex3B

70 70

Intergovernmental payables (unconfirmed balances) Annex 5 98 57Total 168 140

18.2 Contingent assets

Nature of contingent asset

Department of Arts and Culture (DAC): Donation to 2 500 -be allocated to department via 2014/15 AdjustmentBudgetTotal 2 500 -

The implementation of the Policy and Procedure on Incapacity Leave and Ill-health Retirement(PILIR) was suspended for part of the financial year. PILIR provides for the appointment of a Panel ofAccredited Health Risk Managers, by the Department of Public Service and Administration, as serviceproviders available to a department to investigate and assess the applications made by employees.The appointment of these service providers was delayed due to a legal challenge brought to the HighCourt against the appointment process. Therefore for the first half of the financial year no timeousdecision could be made on the validity of the incapacity and/or ill-health retirement applicationsreceived from employees. Although the Panel was formally established on 1 November 2013 thereis a possibility that amounts paid to employees on incapacity and/or ill-health retirement may berecoverable if the applications, made in the first part of the financial year, are not subsequentlyrecommended by the service providers.

157



19. Commitments

Note 2013/14 2012/13R’000 R’000

Current expenditureApproved and contracted 981 1 730Approved but not yet contracted - 392Total current expenditure 981 2 122Capital expenditureApproved and contracted 331 868 55 569Approved but not yet contracted 233 447 540 994Total Capital expenditure 565 315 596 563

Total Commitments 566 296 598 685

The capital expenditure commitments of R565.231 million (2012/13: R596.563) run over a period ofthree years.

(a) The amount disclosed for commitments in 2012/13 was overstated by R833 000 as a result ofinclusion of retention fees in payments for all infrastructure projects in progress. This was

correctedin 2013/14.

This has the effect that comparative figures were restated as follows:R’000

Capital expenditureApproved and contracted 1 315 increaseApproved but not yet contracted 482 decrease

(b) The capital expenditure commitments over a period of three years were limited to commitmentsapproved but not yet contracted and did not include contracted commitments. This has the effectthat the comparative figure for the capital commitment was restated as follows:

R’000Increase by 55 087

The errors do not have any impact on the voted funds to be surrendered to the Revenue Funds.

158





- 39 -

20. Accruals

2013/14 2012/13R’000 R’000

Listed by economic classification30 Days 30+ Days Total Total

Goods and services 436 101 537 2 274Capital assets 31 408 - 31 408 6 211Total 31 844 101 31 945 8 485

Programme 1: Administration 395 965Programme 2: Cultural Affairs 74 6 574Programme 3: Library an Archive Services 15 185Programme 4: Sport and Recreation 31 461 761Total 31 945 8 485

Included in the amount of R31.945 million is a payment of R31.408 million for the construction of theSeisa Ramabodu Stadium which is budgeted for in the 2014/15 financial year.

Confirmed balances with departments Annex 5 96 22Confirmed balances with other government entities Annex 5 730 669Total 826 691

21. Employee benefits

Note 2013/14 2012/13R’000 R’000

Leave entitlement 7 452 6 403Service bonus (Thirteenth cheque) 4 986 4 738Performance awards 1 156 1 082Capped leave commitments 4 501 4 251Other 264 -Total 18 359 16 474



- 40 -

22. Lease commitments22.1 Operating leases expenditure

2013/14

Specialisedmilitary

equipment Land

Buildingsand other

fixedstructures

Machineryand

equipment TotalR’000 R’000 R’000 R’000 R’000

Not later than 1 year - - - 2 917 2 917Later than 1 year and not laterthan 5 years

- - - 5 878 5 878

Later than 5 year - - - 5 5Total lease commitments - - - 8 800 8 800

2012/13Not later than 1 year - - - 1 934 1 934Later than 1 year and not laterthan 5 years

- - - 3 234 3 234

Later than five years - - - 53 53Total lease commitments - - - 5 221 5 221

Represent rental of vehicles from Government Motor Transport

22.2 Finance leases expenditure

2013/14


- - - 1 868 1 868

Later than five years - - - - -Total lease commitments - - - 2 936 2 936

2012/13


- - - 1 246 1 246


Represent cellphones and 3 G’s that are leased from MTN with which the Department has a 24-monthscontract.

159





- 39 -

20. Accruals

2013/14 2012/13R’000 R’000

Listed by economic classification30 Days 30+ Days Total Total

Goods and services 436 101 537 2 274Capital assets 31 408 - 31 408 6 211Total 31 844 101 31 945 8 485

Programme 1: Administration 395 965Programme 2: Cultural Affairs 74 6 574Programme 3: Library an Archive Services 15 185Programme 4: Sport and Recreation 31 461 761Total 31 945 8 485

Included in the amount of R31.945 million is a payment of R31.408 million for the construction of theSeisa Ramabodu Stadium which is budgeted for in the 2014/15 financial year.

Confirmed balances with departments Annex 5 96 22Confirmed balances with other government entities Annex 5 730 669Total 826 691

21. Employee benefits

Note 2013/14 2012/13R’000 R’000

Leave entitlement 7 452 6 403Service bonus (Thirteenth cheque) 4 986 4 738Performance awards 1 156 1 082Capped leave commitments 4 501 4 251Other 264 -Total 18 359 16 474



- 40 -

22. Lease commitments22.1 Operating leases expenditure

2013/14

Specialisedmilitary

equipment Land

Buildingsand other

fixedstructures

Machineryand

equipment TotalR’000 R’000 R’000 R’000 R’000


- - - 5 878 5 878

Later than 5 year - - - 5 5Total lease commitments - - - 8 800 8 800

2012/13Not later than 1 year - - - 1 934 1 934Later than 1 year and not laterthan 5 years

- - - 3 234 3 234

Later than five years - - - 53 53Total lease commitments - - - 5 221 5 221

Represent rental of vehicles from Government Motor Transport

22.2 Finance leases expenditure

2013/14


- - - 1 868 1 868


2012/13


- - - 1 246 1 246


Represent cellphones and 3 G’s that are leased from MTN with which the Department has a 24-monthscontract.

160



VOTE 12


- 42 -

23.3 Details of irregular expenditure condoned

Incident Condoned by (condoning authority) 2013/14R’000

Extension of contract whist awaitingtransversal contract to be finalised

Liability Committee 5

Unsolicited bids Accounting Officer 5 304Non-compliance with SCM processes Liability Committee 245Non-compliance with SCM processes Accounting Officer 99Contractors appointed by theimplementation agent (Public Works)without following SCM procedures

Accounting Officer 1 053

Total 6 706

The R5.304 million – unsoliticed bid was condoned after the responsible official was given a writtenwarning and a suspension without salary for one month.

23.4 Details of irregular expenditures under investigation

IncidentNon-compliance with BCV petty cash policy 148Non-compliance with SCM processes 233Services rendered without commitment of public funds 26Non-compliance with PT Instruction Note 32Internal absence of original tax clearance certificate 171Absence, in the leading department, of original tax clearance certificate in aparticipating contract

550

Total 1 160

24. Fruitless and wasteful expenditure

24.1 Reconciliation of fruitless and wasteful expenditure

Note 2013/14 2012/13R’000 R’000

Opening balance 2 368 1 078Fruitless and wasteful expenditure – relating to prior year - 1 996Fruitless and wasteful expenditure – relating to currentyear

894 372

Less: Amounts resolved (1 142) (1 078)

Fruitless and wasteful expenditure awaiting resolution2 120 2 368

24.2 Analysis of awaiting resolution per economic classification

Current 2 120 2 368Total 2 120 2 368

23. Irregular expenditure

23.1 Reconciliation of irregular expenditure

Note 2013/14 2012/13R’000 R’000

Opening balance 6 755 12 040Add: Irregular expenditure – relating to current year 1 111 2 380Less: Prior year amounts condoned (6 701) (7 665)Less: Current year amounts condoned (5) -

Irregular expenditure awaiting condonation 1 160 6 755

Analysis of awaiting condonation per age classification

Current year 1 100 1 451Prior years 60 5 304

Total 1 160 6 755

Comparative figures have been amended to remove an amount of R34 000 for which no suchpayment existed.

23.2 Details of irregular expenditure – current year

Incident Disciplinary stepstaken/criminal proceedings

2013/14R’000

Non-compliance with Basotho Cultural Village (BCV)petty cash policy

Investigation is near completion 148

Non-compliance with SCM (Supply ChainManagement) procedures when acquiring goods andservices

Investigation completed 5

Services rendered without the commitment of funds Under investigation 13Non-compliance with Provincial Treasury InstructionNote 31 regarding accommodation and monthlykilometres limits

To be investigated 32

Non-compliance with SCM procedures Under investigation 192Non-compliance with internal SCM procedures as aresult of original tax clearance certificate notsubmitted

171

Non-compliance of SCM procedures by the leadingdepartment as a result of original tax clearancecertificate not submitted in a participating contract

Under investigation 550

Total 1 111

161



VOTE 12


- 42 -

23.3 Details of irregular expenditure condoned

Incident Condoned by (condoning authority) 2013/14R’000

Extension of contract whist awaitingtransversal contract to be finalised

Liability Committee 5

Unsolicited bids Accounting Officer 5 304Non-compliance with SCM processes Liability Committee 245Non-compliance with SCM processes Accounting Officer 99Contractors appointed by theimplementation agent (Public Works)without following SCM procedures

Accounting Officer 1 053

Total 6 706

The R5.304 million – unsoliticed bid was condoned after the responsible official was given a writtenwarning and a suspension without salary for one month.

23.4 Details of irregular expenditures under investigation

IncidentNon-compliance with BCV petty cash policy 148Non-compliance with SCM processes 233Services rendered without commitment of public funds 26Non-compliance with PT Instruction Note 32Internal absence of original tax clearance certificate 171Absence, in the leading department, of original tax clearance certificate in aparticipating contract

550

Total 1 160

24. Fruitless and wasteful expenditure

24.1 Reconciliation of fruitless and wasteful expenditure

Note 2013/14 2012/13R’000 R’000

Opening balance 2 368 1 078Fruitless and wasteful expenditure – relating to prior year - 1 996Fruitless and wasteful expenditure – relating to currentyear

894 372

Less: Amounts resolved (1 142) (1 078)

Fruitless and wasteful expenditure awaiting resolution2 120 2 368

24.2 Analysis of awaiting resolution per economic classification

Current 2 120 2 368Total 2 120 2 368

162



VOTE 12


- 43 -

24.3 Analysis of Current year’s fruitless and wasteful expenditure

Incident Disciplinary steps taken/criminalproceedings

2013/14R’000

GMT vehicle rental without utilisation Awaiting submission for de-recognition 120SMS member not placed in structureduring transitional period ofredeployment

Correctly placed in structure 769

Payment for cellphone for official thathas resigned

Under investigation 5

Total 894

25. Key management personnel

No. ofIndividuals

2013/14R’000

2012/13R’000

Political office bearers (provide detail below) 1 1 735 1 652Officials:

Level 15 to 16 1 1 634 1 548Level 14 (incl. CFO if at a lower level) 5 4 607 4 463

Total 7 976 7 663

163



VOTE 12


- 44 -

26. Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEARENDED 31 MARCH 2014

Openingbalance

Curr YearAdjust-

ments toprior yearbalances

Additions Disposals ClosingBalance

R’000 R’000 R’000 R’000 R’000

HERITAGE ASSETS 215 1 - - 216Heritage assets 215 1 - - 216

MACHINERY ANDEQUIPMENT 61 060 62 7 285 597 67 810Transport assets 10 - 65 65 10Computer equipment 10 621 (199) 4 971 240 15 153Furniture and office equipment 8 350 (25) 545 11 8 859Other machinery and equipment 42 079 286 1 704 281 43 788

TOTAL MOVABLE TANGIBLECAPITAL ASSETS 61 275 63 7 285 597 68 026

26.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THEYEAR ENDED 31 MARCH 2014

Cash Non-cash (CapitalWork in

Progresscurrent

costs andfinance

leasepayments)

Receivedcurrent,not paid

(Paidcurrent

year,received

prior year)

Total

R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 7 335 362 (412) - 7 285Transport assets 65 - - - 65Computer equipment 4 928 43 - - 4 971Furniture and office equipment 342 203 - - 545Other machinery and equipment 2 000 116 (412) - 1 704

TOTAL ADDITIONS TOMOVABLE TANGIBLE CAPITALASSETS 7 335 362 (412) - 7 285

164



VOTE 12


- 45 -

26.2 Disposals

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THEYEAR ENDED 31 MARCH 2014

Sold forcash

Transfer out ordestroyed or

scrapped

Totaldisposals

CashReceived

ActualR’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT - 597 597 4Transport assets - 65 65 -Computer equipment - 240 240 -Furniture and office equipment - 11 11 -Other machinery and equipment - 281 281 4

TOTAL DISPOSAL OFMOVABLE TANGIBLE CAPITALASSETS - 597 597 4

26.3 Movement for 2012/13

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEARENDED 31 MARCH 2013

Openingbalance

Curr YearAdjust-



R’000 R’000 R’000 R’000 R’000

HERITAGE ASSETS 316 (149) 48 - 215Heritage assets 316 (149) 48 - 215

MACHINERY ANDEQUIPMENT 44 111 4 848 13 457 1 356 61 060Transport assets 10 - 1 151 1 151 10Computer equipment 8 658 (31) 2 175 181 10 621Furniture and office equipment 7 856 34 480 20 8 350Other machinery and equipment 27 587 4 845 9 651 4 42 079

TOTAL MOVABLE TANGIBLECAPITAL ASSETS 44 427 4 699 13 505 1 356 61 275

165



26.4 Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31MARCH 2014

Specialisedmilitaryassets

Intangibleassets

Heritageassets

Machineryand

equipment

Biologicalassets

Total

R’000 R’000 R’000 R’000 R’000 R’000

Opening balance - 437 1 331 145 160 - 146 928Curr YearAdjustments toPrior Yearbalances

- 46 150 (119) - 77

Additions - 413 82 13 417 - 13 912Disposals - - (1) (2 795) - (2 796)TOTAL MINORASSETS - 896 1 562 155 663 - 158 121

Included in total minor assets (machinery and equipment) is library material to a value of R127.594 million(2012/13: R118.436 million). No provision is made for projected losses of library material between thestocktaking dates and 31 March 2013, which are projected to amount to R1.632 million (2012/13: R1.765million).

Number of R1minor assets

- - 484 818 - - 484 818

Number of minorassets at cost

- 2 945 15 166 2 440 497 - 2 458 608

TOTAL NUMBEROF MINORASSETS - 2 945 499 984 2 440 497 - 2 943 426

Included in Total number of minor assets (machinery and equipment) is 2 366 575 (2012/13: 2 339 477library materials items of which 28 324 (2012/13: 37 381) has a carrying value of R1 per item. Noprovision is made for projected losses of library material items between the stocktaking dates and31 March 2014, which are projected to comprise 33 884 (2012/13: 39 993) items.

166





- 47 -

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31MARCH 2013


Intangibleassets

Heritageassets

Machineryand

equipment

Biologicalassets

Total

R’000 R’000 R’000 R’000 R’000 R’000

Openingbalance

- 252 1 023 25 505 - 26 780

Curr YearAdjustments toPrior Yearbalances

- - 307 114 074 - 114 381

Additions - 185 3 8 718 - 8 906Disposals - - 2 3 137 - 3 139TOTAL MINORASSETS - 437 1 331 145 160 - 146 928

Number of R1minor assets

- - 484 549 37 381 - 521 930

Number of minorassets at cost

- 1 460 14 464 2 372 122 - 2 388 046

TOTALNUMBER OFMINORASSETS

-1 460 499 013 2 409 503 - 2 909 976

26.5 Movable assets written off

MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2014


Intangibleassets

Heritageassets

Machineryand

equipment

Biologicalassets

Total

R’000 R’000 R’000 R’000 R’000 R’000

Assets written off - - - 3 511 - 3 511TOTALMOVABLEASSETSWRITTEN OFF

- - - 3 511 - 3 511



- 48 -



- - - 4 967 - 4 967

27. Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED31 MARCH 2014

Openingbalance

CurrentYear

Adjust-ments to

prior yearbalances


R’000 R’000 R’000 R’000 R’000

SOFTWARE 1 589 - 12 - 1 601

TOTAL INTANGIBLE CAPITALASSETS 1 589 - 12 - 1 601

27.1 Additions

ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED31 MARCH 2014

Cash Non-Cash (Develop-ment work

inprogress –

currentcosts)

Receivedcurrent

year, notpaid

(Paidcurrent

year,received

prior year)

Total

R’000 R’000 R’000 R’000 R’000

SOFTWARE 12 - - - 12

TOTAL ADDITIONS TOINTANGIBLE CAPITAL ASSETS 12 - - - 12

167



VOTE 12


- 48 -



- - - 4 967 - 4 967

27. Intangible Capital Assets


Openingbalance

CurrentYear

Adjust-ments to

prior yearbalances


R’000 R’000 R’000 R’000 R’000

SOFTWARE 1 589 - 12 - 1 601


27.1 Additions

ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED31 MARCH 2014

Cash Non-Cash (Develop-ment work

inprogress –

currentcosts)

Receivedcurrent

year, notpaid

(Paidcurrent

year,received

prior year)

Total

R’000 R’000 R’000 R’000 R’000

SOFTWARE 12 - - - 12

TOTAL ADDITIONS TOINTANGIBLE CAPITAL ASSETS 12 - - - 12

168





- 49 -



Openingbalance

CurrentYear

Adjust-ments to

prior yearbalances


R’000 R’000 R’000 R’000 R’000

SOFTWARE 1 248 - 341 - 1 589


28. Immovable Tangible Capital Assets

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THEYEAR ENDED 31 MARCH 2014

BUILDINGS AND OTHERFIXED STRUCTURES - - - - -Non-residential buildings - - - - -

TOTAL IMMOVABLETANGIBLE CAPITAL ASSETS - - - - -

Current year adjustments to prior year balances relate to payments for infrastructure projects during theprevious financial year which are included in the immovable assets transferred out (as part of disposals)to Department of Public Works and municipalities during the current year.



- 50 -

28.1 Additions

ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEARENDED 31 MARCH 2014

Cash Non-cash (Capital Workin Progress

current costsand finance

leasepayments)

Receivedcurrent, not

paid(Paid current

year, receivedprior year)

Total

R’000 R’000 R’000 R’000 R’000

BUILDING AND OTHER FIXEDSTRUCTURES 162 756 - (162 756) - -Non-residential buildings 162 756 - (162 756) - -

TOTAL ADDITIONS TOIMMOVABLE TANGIBLECAPITAL ASSETS 162 756 - (162 756) - -

28.2 Disposals

DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THEYEAR ENDED 31 MARCH 2014

Sold forcash

Transferout or

destroyedor

scrapped

Totaldisposals

CashReceived

Actual

R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXEDSTRUCTURES - - -Non-residential buildings - - -

TOTAL DISPOSALS OFIMMOVABLE TANGIBLECAPITAL ASSETS - - -

169





- 49 -



Openingbalance

CurrentYear

Adjust-ments to

prior yearbalances


R’000 R’000 R’000 R’000 R’000

SOFTWARE 1 248 - 341 - 1 589


28. Immovable Tangible Capital Assets


BUILDINGS AND OTHERFIXED STRUCTURES - - - - -Non-residential buildings - - - - -

TOTAL IMMOVABLETANGIBLE CAPITAL ASSETS - - - - -

Current year adjustments to prior year balances relate to payments for infrastructure projects during theprevious financial year which are included in the immovable assets transferred out (as part of disposals)to Department of Public Works and municipalities during the current year.



- 50 -

28.1 Additions

ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEARENDED 31 MARCH 2014

Cash Non-cash (Capital Workin Progress

current costsand finance

leasepayments)

Receivedcurrent, not

paid(Paid current

year, receivedprior year)

Total

R’000 R’000 R’000 R’000 R’000

BUILDING AND OTHER FIXEDSTRUCTURES 162 756 - (162 756) - -Non-residential buildings 162 756 - (162 756) - -

TOTAL ADDITIONS TOIMMOVABLE TANGIBLECAPITAL ASSETS 162 756 - (162 756) - -

28.2 Disposals

DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THEYEAR ENDED 31 MARCH 2014

Sold forcash

Transferout or

destroyedor

scrapped

Totaldisposals

CashReceived

Actual

R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXEDSTRUCTURES - - -Non-residential buildings - - -

TOTAL DISPOSALS OFIMMOVABLE TANGIBLECAPITAL ASSETS - - -

170



VOTE 12


- 51 -



Openingbalance

Curr YearAdjust-



R’000 R’000 R’000 R’000 R’000

BUILDINGS AND OTHERFIXED STRUCTURES - 29 029 7 442 36 471 -Non-residential buildings - 29 029 7 442 36 471 -

TOTAL IMMOVABLETANGIBLE CAPITAL ASSETS - 29 029 7 442 36 471 -

28.4 AssetstobesubjectedtotransferintermsofS42ofthePFMA

NUMBER OF VALUE OFASSETS ASSETS

R’000

BUILDINGS AND OTHER FIXED STRUCTURES 4 19 778Non-residential buildings 4 19 778

TOTAL 4 19 778

Assetsalreadysubjectedtotransferinterms of S42 of the PFMA – 2012/13

BUILDINGS AND OTHER FIXED STRUCTURES 3 13 768Non-residential buildings 3 13 768

TOTAL 3 13 768



- 52 -

29. Agent-principal arrangements

2013/14R’000

Department acting as the principal

E’tsho Civils 25 279Free State Travel 12 107Free State Sport Confederation 23 347Peo Sheer Squared 42 737Independent Development Trust(advance payments)

23 983

Total 127 453

E’tsho Civils is the appointed Construction Project Manager (CPM) for all Infrastructure Projectsfor a period of three years.

Free State Travel is responsible for all travel arrangements of the Department for a period ofthree years.

Free State Sport Confederation was established to coordinate and support all major sportbodies in the province from year to year. It is a non-profit institution.

Peo Sheer Squared (PSS) was appointed as an event management company specifically forMACUFE. The contract was for a period of three years.

Independent Development Trust (IDT) is a public entity appointed to assist both the departmentand Department of Public Works to implement certain infrastructure projects on behalf of thedepartment. Management fees are levied by IDT which are paid by Public Works. Thisagreement remains in force until the specific infrastructure projects have been concluded.



- 52 -


2013/14R’000



23 983

Total 127 453






171



VOTE 12


- 52 -


2013/14R’000



23 983

Total 127 453








- 52 -


2013/14R’000



23 983

Total 127 453






172



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

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Unaudited - 63 -

ANNEXURE 5INTER-GOVERNMENT PAYABLES

GOVERNMENT ENTITY

Confirmed balanceoutstanding

Unconfirmed balanceoutstanding TOTAL

31/03/2014 31/03/2013 31/03/2014 31/03/2013 31/03/2014 31/03/2013R’000 R’000 R’000 R’000 R’000 R’000

DEPARTMENTSCurrentHuman Settlement - 10 - - - 10Premier: Free State - 12 - - - 12SAPS - - - 13 - 13Gauteng Department ofEducation

- - - 14 - 14

Department of Water Affairs - - - 15 - 15Department of Justice 31 - - 10 31 10Department of InternationalRelations

65 - 11 - 76 -

Subtotal 96 22 11 52 107 74

OTHER GOVERNMENTENTITYCurrentGovernment Motor Transport 730 669 87 5 817 674

Subtotal 730 669 87 5 817 674

Total 826 691 98 57 924 748

Not included in the payables above is the claim of R119 000 due to the Department of Premier (R58 000) andDepartment of Justice (R61 000), that was paid on 31 March 2014, but which was received by the latterdepartments after year-end.



Unaudited - 63 -

ANNEXURE 5INTER-GOVERNMENT PAYABLES

GOVERNMENT ENTITY



31/03/2014 31/03/2013 31/03/2014 31/03/2013 31/03/2014 31/03/2013R’000 R’000 R’000 R’000 R’000 R’000

DEPARTMENTSCurrentHuman Settlement - 10 - - - 10Premier: Free State - 12 - - - 12SAPS - - - 13 - 13Gauteng Department ofEducation

- - - 14 - 14

Department of Water Affairs - - - 15 - 15Department of Justice 31 - - 10 31 10Department of InternationalRelations

65 - 11 - 76 -

Subtotal 96 22 11 52 107 74

OTHER GOVERNMENTENTITYCurrentGovernment Motor Transport 730 669 87 5 817 674

Subtotal 730 669 87 5 817 674

Total 826 691 98 57 924 748

Not included in the payables above is the claim of R119 000 due to the Department of Premier (R58 000) andDepartment of Justice (R61 000), that was paid on 31 March 2014, but which was received by the latterdepartments after year-end.

183



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Unaudited - 65 -

ANNEXURE 7AMOVEMENT IN CAPITAL WORK-IN-PROGRESS

MOVEMENT IN CAPITAL WORK-IN-PROGRESS FOR THE YEAR ENDED 31 MARCH 2014Openingbalance

CurrentYear

CapitalWIP

CompletedAssets

Closingbalance

R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXEDSTRUCTURES 158 605 162 756 19 778 301 583

Non-residential buildings 158 605 162 756 19 778 301 583

TOTAL 158 605 162 756 19 778 301 583

Completed assets of R19.778 million represent assets yet to be transferred out, as they areready for use, but still subject to be finalised as transfers to Department of Public Works interms of Section 42 of the PFMA.

185





Unaudited - 66 -

ANNEXURE 8AINTER-ENTITY ADVANCES PAID (note 11)

ENTITY



31/03/2014 31/03/2013 31/03/2014 31/03/2013 31/03/2014 31/03/2013R’000 R’000 R’000 R’000 R’000 R’000

OTHER INSTITUTIONS

Independent DevelopmentTrust (IDT) 295 1 924 - - 295 1 924

Total 295 1 924 - - 295 1 924

186



NOTES

187



NOTES

188



NOTES

189



NOTES

190



NOTES

191



NOTES

192



NOTES

Documents

DEPARTMENT OF SPORT, ARTS, CULTURE AND RECREATION (VOTE … · 2018-08-15 · 8 FS: SPORT, ARTS, CULTURE AND RECREATION VOTE 12 ANNUAL REPORT 2013/2014 3. FOREWORD BY THE MEC The