2019 - 2020KZN TRANSPORT ANNUAL REPORT 1
GROWINGTOGETHERKWAZULU-NATAL
www.kzntransport.gov.za
ANNUAL REPORT2019/20VOTE 12
2019 - 2020 KZN TRANSPORT ANNUAL REPORT4
PART A: GENERAL INFORMATIONGeneral Information .................................................................................................................. 7List of Abbreviations /Acronyms ................................................................................................ 8Strategic Overview .................................................................................................................... 9Legislative and Other Mandates ......................................................................................... 9 - 10Organisational Structure ......................................................................................................... 12Foreword by Minister/MEC of Department ............................................................................ 17Remarks by the Accounting Officer ......................................................................................... 18Accounting Officer’s Statement of Responsibility for Annual Report ...................................... 19
PART B: PERFORMANCE INFORMATIONOverview of Departmental Performance ................................................................................ 21Performance Information by Programme ............................................................................... 29Transfer Payments ................................................................................................................... 34Conditional Grants ................................................................................................................... 34Donor Funds ............................................................................................................................ 36Capital Investment .................................................................................................................. 37
PART C: GOVERNANCERisk Management .................................................................................................................... 57Fraud and Corruption .............................................................................................................. 59Audit Committee Report ......................................................................................................... 60SCOPA Resolutions .................................................................................................................. 74
PART D: HUMAN RESOURCE MANAGEMENTIntroduction ........................................................................................................................... 112Human Resources Oversight Statistics .................................................................................. 113Emplyment Equity ................................................................................................................. 126Labour Relations .................................................................................................................... 137Skills Development ................................................................................................................ 139
PART E: FINANCIAL INFORMATION Report of the Auditor General ............................................................................................... 147Report of the Accounting Officer........................................................................................... 156Appropriation Statement ...................................................................................................... 165Notes to the Appropriation Statement .................................................................................. 197Statement of Financial Performance ..................................................................................... 199Statement of Financial Position ............................................................................................. 200Statement of Change in Assets .............................................................................................. 201Cash Flow Statement ............................................................................................................. 202Accounting Policies ................................................................................................................ 203Notes to the Annual Financial Statements ............................................................................ 209Annexures .............................................................................................................................. 273
CO
NTE
NT
2019 - 2020KZN TRANSPORT ANNUAL REPORT 5
ANNUAL REPORT2019/20VOTE 12
PHYSICAL ADDRESSINKOSI MHLABUNZIMA MAPHUMULO HOUSE 172 Burger StreetPietermaritzburg3201
Postal AddressPrivate Bag X9043Pietermaritzburg3200
Contact Telephone Numbers033 355 8600
Website Address:www.kzntransport.gov.za
PR280/2020ISBN: 978-0-621-48716-9
2019 - 2020 KZN TRANSPORT ANNUAL REPORT6
KwaZulu-Natal Department of TransportAnnual Report 2019/20
Mr. Bheki Ntuli, MEC for Transport and Community Safety and Liaison
I have the honour of submitting the Annual Report of the Department of Transport for the period of 1 April 2019 to 31 March 2020.
MR. BHEKI NTULIMEC FOR TRANSPORT, COMMUNITY SAFETY AND LIAISON
PART A: GENERAL INFORMATION
2019 - 2020KZN TRANSPORT ANNUAL REPORT 7
PART A: GENERAL INFORMATION
ANNUAL REPORT2019/20VOTE 12
GENERALINFORMATION
PART A:
2019 - 2020 KZN TRANSPORT ANNUAL REPORT8
PART A: GENERAL INFORMATION
LIST OF ABBREVIATIONS / ACRONYMSDPSA Department of Public Service and AdministrationeNaTIS Electronic National Administration Traffic Information SystemEHW Employee Health and WellnessEPMDS Employee Performance Management and Development SystemERM Enterprise Risk ManagementEPWP Expanded Public Works ProgrammeGPSSBC General Public Service Sectorial Bargaining CouncilGIAMA Government Immovable Asset Management ActGWEA Government Wide Enterprise Architecture ProjectHOD Head of DepartmentHEI(s) Higher Education InstitutionsHIV Human Immunodeficiency virusHR Human ResourceKZN KwaZulu-NatalLSD Legal Services DirectorateMTEF Medium Term Expenditure FrameworkMEC Member of Executive CommitteeNEHAWU National Education, Health and Allied Workers Union OSD Occupational Specific DispensationPRASA Passenger Rail Agency of South AfricaPMDS Performance Management and Development SystemPALAMA Public Administration Leadership and Management AcademyPSC Public Service CommissionPSCBC Public Service Coordinating Bargaining CouncilPSI Public Service InductionPGDP Provincial Growth and Development PlanPGDPS Provincial Growth and Development StrategyPTOG Public Transport Operations GrantPOPCRU Police and Prisons Civil Rights UnionRRD Roads for Rural DevelopmentRNI Roads of National ImportanceSACCO Savings Clubs and Savings & Credit CooperativesSACCO Savings and Credit Co-operativesSETA Sector Education and Training AuthoritySMS Senior Management ServiceSARS South African Revenue ServicesSCM Supply Chain Management SITA State Information Technology AgencySIP2 Strategic Infrastructure Project 2TB TuberculosisVECA Vukuzakhe Emerging Contractor’s Association
2019 - 2020KZN TRANSPORT ANNUAL REPORT 9
PART A: GENERAL INFORMATION
STRATEGIC OVERVIEW
VISIONThe Department’s vision is: Prosperity through mobility.This means that all activities of the department and, the manner in which the department delivers services to communities, will increase the wealth and quality of life of all the citizens of the Province.
Mission statementThe Department’s mission is: We will strive to provide the public with mobility through an affordable transportation system that is safe, integrated, regulated and accessible, to meet the developmental needs of our province.
ValuesThe values of the department emanate from the Batho Pele principles. The department’s values are:
• Teamwork• Integrity• Commitment to serve• Leadership• Value for Money
STRATEGIC GOALSThe department’s strategic goals are summarised as follows:• Provide mobility and accessibility within the province to achieve 32,890 kilometres of maintained road infrastructure by 2020The department seeks, through co-operative governance, to plan, design and construct access roads and bridges (including pedestrian bridges) to communities, with the aim of improving the quality of people’s lives thereby striving to achieve an equitable, balanced and well-maintained road network in a manner that stimulates economic growth and development.• Promote an integrated transportation system through developing 3 IPTN Operational Plans.The department seeks to provide, promote and develop a well-managed, integrated land transportation system and infrastructure, optimising all modes of transport and to ensure accessibility for people and goods in 3 municipalities i.e. Hibiscus Coast Municipality, KwaDukuza Municipality and UMkhanyakude District Municipality. • Provide and promote a safe road environment by decreasing road fatalities by 30% (545/1,819) by 2020.The Department seeks to provide a safe, regulated road environment for all road users (motorised and non-motorised) through Education, Enforcement, Engineering and Evaluation.• Promote sustainable economic transformation through developing 2 empowerment programmes.The department will promote and support sustainable economic transformation through empowerment programmes and policies.
LEGISLATIVE AND OTHER MANDATESThe key legislative mandates of the department are derived mainly from the following legislation:
• Administrative Adjudication Of Road Traffic Offences, 1998 (Act No. 46 of 1998)• Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)• Criminal Procedure Act, 1977 (Act No. 51 of 1977)• Cross-Border Road Transport Act, 1998 (Act No. 4 of 1998)• Employment Equity Act, (Act No. 55 Of 1998)• Intergovernmental Relations Framework Act, 2005 (Act No.13 of 2005)• KZN Provincial Roads Act, 2001 (Act No.4 of 2001)• KZN Road Traffic Act, 1997 (Act No.7 of 1997)• National Land Transport Act, 2009 (Act No. 5 of 2009)• National Road Traffic Act, 1996 (Act No. 93 of 1996)• Occupational Health and Safety Amendment Act, 1993 (Act No. 181 of 1993)• Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000)• Promotion of Access to Information Act, 2000 (Act No. 2 of 2000)• Promotion of Administrative Justice Act, 2000 (Act No. 3 of 2000)• Public Finance Management Act, 1999 (Act No.1 of 1999)• Public Service Act, 1994 (Act No. 103 of 1994) and Regulations• Road Traffic Act, 1989 (Act No. 29 of 1989)• Road Traffic Management Corporation Act, 1999 (Act No. 20 of 1999)
2019 - 2020 KZN TRANSPORT ANNUAL REPORT10
• The Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996)• The Construction Industry Development Board Act, 2000 (Act No. 38 of 2000)• The Construction Regulations; 2014, Gazette 37305 to the Occupational Health and Safety Act; 1993 (Act No 85 of1993)• The National Water Amendment Act; 2014 (Act No. 27 of 2014) and the accompanying Draft Regulations Regarding the
Procedural Requirements for Licence Applications in terms of Section 26(1) (k) of the National Water Act; 1998 (Act No. 36 of 1998)
• The Spatial Planning and Land Use Management Act; 2013 (Act No. 16 of 2013) (SPLUMA)• Preferential Procurement Regulations; 1 April 2017• National Treasury Standard for Infrastructure Procurement and Delivery Management SIPDM – First Edition (October 2015)• The National Land Transport Act; 2009 (Act No. 5 of 2009)
OTHER MANDATES• Draft National Scholar Transport Policy, 2014• Draft Non-Motorised Transport Policy, December 2008 • Growth, Employment and Redistribution: A Macro-economic Strategy (GEAR), (June 1996)• Integrated Sustainable Rural Development Strategy, November 2005• KZN White Paper on Freight Transport Policy (October 2004)• Local Roads For Rural Development In Kwazulu-Natal, March 1997• National Development Plan, 2030• National Freight Logistics Strategy (October 2005)• National Infrastructure Plan, 2014• National Road Safety Strategy, 2006 Onwards• New Growth Path Framework, 2011• Provincial Growth and Development Plan, 2019• Provincial Spatial Economic Development Strategy, October 2006• Public Transport Strategy and Action Plan, 2007• Road Infrastructure Strategic Framework for South Africa (October 2006)• Rural Transport Strategy for South Africa 2007• The National Spatial Development Perspective (2006)• White Paper on National Transport Policy, 1996• African Union (AU) Agenda, 2063 • Transforming our World : The 2030 Agenda for Sustainable Development; 2015 • National Youth Policy 2015 – 2020 and National Youth Plan; 2020• KZN Poverty Eradication Master Plan, 2014 (PEMP) • The National Land Transport Strategic Framework; (2017-2022)• National Road Safety Strategy (2016-2030); 1 April 2017
PART A: GENERAL INFORMATION
2019 - 2020 KZN TRANSPORT ANNUAL REPORT12
MR. C. STRETCHDirector:Freight Transport
MR. S.A. THWALADirector:Public Transport Services
MR. S.M. MNOMIYA Director: Public Transportation Policy Planning
MS N. DLAMINIActing Director: Human Resource Practices
MS S. SIBISIActing Director: Human ResourceDevelopment
MS. T.V. NZUZADirector: Labour Relations
MR. S.J. LUNGAChief Director: Provincial Regulatory Entity
MS. B.T. DUZE Acting Chief Director: Public and Freight Transport
MR. S.S NXUMALOChief Director: Road Safety & Traffic Management
MR. L.X.K. MTAMBOChief Director:Empangeni Region
MS. P.F. SIBIYADirector: Construction
MS. P. SITHEBEDirector: Expanded Public Works Programme
MR. S.S. NKOSIDeputy Director General: Transport Infrastructure & Regional Services
MR. J.S. MBHELEChief Director: Durban Region
MS. B.N.P. NOGWANYAChief Director: Ladysmith Region
MS. B.N NTOMBELAChief Director: Pietermaritzburg Region
MR. S.S. NKOSIActing Director: Engineering Services
MS. T.P. MABASODirector: Road Safety
MR. V. CHETTYDirector: Road Traffic Inspectorate
MR. S. SITHOLEDirector: Public Transport Enforcement Services
MR. R. ABRAMSONActing Director: Motor Transport Services
MS. F.M. SITHOLEDeputy Director General: Transportation Services
MR. S.H. NTULIActing Director: Public Transport Monitoring and Compliance
MS. N. HLOPHEDirector: Regulation & Support
VACANTDirector: Regional Support
MS. S. MNGOMEZULUDirector: Technology Tranfer
MR. B.S. GUMBIHead of Department
MS. S. NGUBODeputy Director General: Corporate Management Services
MR. BHEKI NTULIMEC: Transport, Community Safety and Liaison
MS. M.C. ZWANEChief Director: Human Resource Management
PART A: GENERAL INFORMATION
2019 - 2020KZN TRANSPORT ANNUAL REPORT 13
MS. G.P. XABAChief Director: Strategic Management
MR. P. DORKINDirector: Policy and Planning
MS. T.T. MBONAMBI Director: Executive Support
MS. L. MDLETSHE Director: Empowerment Programme
MS. B.T. DUZE Director: Monitoring and Evaluation
MR. S. NGCOBODirector: Organisational Development
MS. D.B. MNYANDUDirector: Risk Management
MR. K.N. NCALANEActing Chief Director: Communications
MR. K.N. NCALANEDirector: Media Liaison and Public Relations
MS. N.N. MCETYWADirector: Communication Support
MS. P.P. SITHOLE Acting Director: Legal Services
MS. K. GOUNDERDirector: Corporate Support Services
MR. N.P. NDAMANEDirector: Information Technology Management Services
MS. V.N. DLADLADirector: Security Services
MR. W. EVANSChief Financial Officer
MR. L. MASHABA Director: Ministerial Support
MR. T.N.A. NKOSIDirector: Financial Accounting
MS. S. KUNENEDirector: Management Accounting
MR. N. SANGWENIDirector: Supply Chain Management
ORGANOGRAMORGANISATIONAL STRUCTURE
PART A: GENERAL INFORMATION
2019 - 2020KZN TRANSPORT ANNUAL REPORT 17
FOREWORD BY THE MECMr. BHEKI NTULIMEC for Transport, Community Safety and Liaison
We have come to an end of one of the most exciting years. I say so with authority because ever since I assumed the role of Executive Authority, I have seen the department working hard and beyond to deliver on its mandate. Again, I wish to pass my appreciation to former MEC Mxolisi Kaunda, for having steered the ship to achieving more milestones. This programme of changing peoples’ lives is far from over; however, we are making a notable dent to underdevelopment.
As you are aware, the sixth administration started a new term with a clear vision and renewed determination to accelerate service delivery and address with greater urgency the triple challenges of unemployment, poverty and inequality. Of significant importance is the fact that this financial year marks the end of our five-year strategic plan. I am proud that some of the key strategic deliverable that the department had set itself were achieved – however, there are others which remain stubborn and still need to be pursued.
Guided by the strategic vision, we continued to implement all our programmes informed by the noble imperative of transforming the transport sector and its economic value chain. Through our iGula programme we succeeded in delivering transformation to the vulnerable groups, targeted groups and Africans in particular. We have no doubt to believe that as we end this financial year, we have laid an important foundation which is a stepping stone towards building an inclusive economy within the transport sector. Our vision moving forward is to expand our role and coordinate the entire sector to be galvanized towards the development of one provincial transport sector-wide plan so that we are able to measure the impact in transforming our economy.
As we continue to deliver upgraded roads from gravel to tar, many of our citizens have expressed deep sense of appreciation as this will restore their dignity and improve economic potential. Equally, the work of building bridges to connect our people and maintaining the existing provincial road network has been hugely welcomed as important measures in driving economic sustainability and growth in the province. Through such infrastructure delivery, we managed
to create much needed jobs, skills transfer, and empowered women headed households through programmes such as Zibambele and many others targeting the youth.
The area of public transport remains with challenges which needs to be addressed at a policy level. Central to this, is an integrated public transport system that will address the demographics and rural nature of many of our district municipalities. Such plans need to be adequately researched and be resourced to achieve the quality of distribution of our limited resources thus expanding beneficiation to our locals. We have already started in uMkhanyakude and we intend to expand to other districts with similar plans, which will be tailor-made to address the need for that particular district.
Again, the area of subsidized public transport remains skewed and is still in the hands of the few. Whilst, eleven negotiated contracts are now in the hands of Africans, more work still need to be done. As we seek to integrate more role players to the transport main stream, we need to continue working hard in building the stability in the taxi industry.
In this financial year, we made progress in addressing administrative shortcomings, including moving towards the finalization of the organogram and addressing the issue of improving audit performance of the Department. In the new financial year, we aim to finalize the organizational structure to build strong institutional capacity. This will also enable us to fight the scourge of corruption and maladministration which undermines the progress we have made in the past twenty-five years of democracy.
In conclusion, we will draw lessons from the experiences of this financial year and other past financial years in improving planning. The factors that resulted to the under expenditure in this financial must be addressed with great urgency to ensure that this does not occur in future. I have no reason to doubt that moving forward, this department will reclaim its strategic role and continue to be a force to be reckoned with.
ENDS
2019 - 2020 KZN TRANSPORT ANNUAL REPORT18
REMARKS BY THE ACCOUNTING OFFICERHead of Department, Mr B.S Gumbi
The financial year of 2019/2020 saw us begin the 6th administration under the democratic dispensation. As with the other previous administration the department saw a change in political leadership when Mr Mxolisi Kaunda our now former MEC was redeployed to serve as the Mayor of the Ethekwini Metropolitan shortly after the 2019 elections. MEC, Mr Bheki Ntuli as a Member of the Executive Council appointed to oversee this department.
As with the previous political changes in leadership this transition was once again smooth and did not cause any instabilities within the department. We thank Mr Kaunda for the guidance that he has provided in the last three years that he spent in the Department. His visionary leadership helped to propel our transformational agenda. MEC Ntuli has picked up the baton and is continuing to build on a solid foundation laid by all his predecessors.
We are proud that in the past two years notable progress has been made in institutionalizing Igula into the Department and we are pleased to report that it is now part of the performance measure of all senior managers and is boldly reflecting on the performance plans of the department.
Since the policy was endorsed by the Provincial Executive Council, two years ago, great strides have been made to translate this into tangible action and we must commend the department for adapting and being the lead agent for transformation. The directive now, as we begin this new term of office is to accelerate its implementation.
For us to successfully do this we need to have a corps of skilled and professional public servants of a high work ethic. It is for this reason that we announced that we would be conducting an internal skills audit. This will assist us to assess our skills gap and technological resources which we will require in order to function optimally as we enter the Fourth Industrial Revolution. The skills audit will also assist us to build an internal capacity to reduce reliance on consultants. Some of the interventions we have undertaken to reduce reliance on consultants include training and supporting our technicians to register as professionals.
The Department of Transport continues to make huge strides in increasing the equity targets. We are pleased to report
that in this financial year we have surpassed the stipulated national target of 50% at senior management level. Currently, women’s representation in senior management is sitting at 52.78%. Women also make up 47.4% of the total permanent staff population in the department. Progress has also been made towards achieving equity with regards to People with Disabilities (PWDS) with the percentage of people with disabilities having grown to 2 percent by the end of 2018/19 financial year.
The Department also remains committed in ensuring clean governance. Despite some qualifications in the past audits, we are making progress in turning our finances around through our Audit Improvement Strategy. We are also continuing to fight fraud and corruption and mitigating any risk factors brought to our attention by our Risk Managemnt Directorate. Already some officials have been dismissed and some are now serving jail sentences. We want to go beyond this and recovery the money stolen from the poor.
We are also addressing the issue of capacity in our planning section and improve our supply chain management processes to avoid under-expenditure in the future financial years.The organizational structure of the department was submitted to the Department of Public Service and Administration in August 2018 following the approval by Provincial Treasury and the Office of the Premier. We are currently awaiting to obtain a concurrence from the Department of Public Service and Administration (DPSA)
In the past financial year, we also adopted a different approach in infrastructure planning. Our approach in wanting to satisfy every communities in all corners of the province has resulted in us starting and stopping projects. Whilst this assists us in having footprints in all corners of the province the pace and turnaround time of completing these projects is slow. Thus our prioritization model will see us identify key projects which are essential corridors to development, economic growth, tourism and agricultural potential as well as those that are serving important amenities in various communities. In this regard we also welcome the commitment by the South African National Roads Agency Limited (SANRAL) who are planning to upgrade two national roads in the province namely the N2 and N3 corridor. The upgrading of this national roads will boost our economy in the long term and improve road safety as it will ease traffic congestion between Pietermaritzburg and Durban.
As we implement this prioritization model, we also remain concerned at the many projects that have been suspended by defaulting contractors. We thus commissioned a technical investigation into the causes of the problem and we are still due to hold a Provincial Transport Contractor Indaba to further unpack challenges in the construction industry
ENDS
PART A: GENERAL INFORMATION
2019 - 2020KZN TRANSPORT ANNUAL REPORT 19
STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF THE ACCURACY OF THE ANNUAL REPORTTo the best of my knowledge and belief, I confirm the following: To the best of my knowledge and belief, I confirm the following:All information and amounts disclosed throughout the annual report are consistent.The annual report is complete, accurate and is free from any omissions.The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury.The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks and guidelines issued by the National Treasury.The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information.The Accounting Officer is responsible for establishing, and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.The external auditors are engaged to express an independent
opinion on the annual financial statements.In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the department for the financial year ended 31 March 2020.
Yours faithfully
DATE: 31 MAY 2019
PART A: GENERAL INFORMATION
2019 - 2020 KZN TRANSPORT ANNUAL REPORT20
ANNUAL REPORT2019/20VOTE 12
PERFORMANCE INFORMATION
PART B:
2019 - 2020KZN TRANSPORT ANNUAL REPORT 21
PART A: GENERAL INFORMATION
UPDATED SITUATION ANALYSIS
The Department of Transport aims to be a front runner in meeting government’s mandates of creating employment, reducing poverty and inequality by fully supporting the interventions of the National Development Plan (NDP); 2030 and the Medium Term Strategic Framework (MTSF) 2014 – 2019. These priorities, together with radical socio-economic transformation have been the foundation that has greatly influenced our Departmental policies, projects and plans.
Furthermore, the Draft Medium - Term Strategic Framework (MTSF) 2019 – 2024, which is high-level strategic document to guide the 5- year implementation and monitoring of the NDP 2030. The Draft MTSF identifies the Priorities to be undertaken during the 2019-2024 period to put the country on a positive trajectory towards the achievement of the 2030 vision. The priorities of the Draft MTSF have been analysed and the Department is aligned to the relevant priorities, especially those in respective of Priority 1 (Transform the Economy to Serve People and Priority 4 (Strengthen Governance and Public Institutions).
It is common knowledge that the transport sector is an integral contributor to the success of the country’s economy as well as a critical factor in the quest to create employment and access to social development by virtue of the opportunities created by the resultant mobility of goods and people. Thus, the Department’s main focus, at a strategic level is to do all we can to ensure a sustainable, efficient transport sector that provides and supports economic and social opportunities. Furthermore, we also strive for outcomes that benefit the greater need of the people, Province and country. We can only achieve this by creating a seamless, cost-effective, efficient, safe and well-maintained transport system due to the impact on the economy and on society.
The KwaZulu-Natal Department of Transport is committed to the principles outlined in the national policy guidelines as previously mentioned, and is of the view that efficient and sustainable transport infrastructure is fundamental to the promotion of economic development, social development, improved service delivery, good governance, social cohesion and improving the standard of living of all South Africans. In the medium term, the Department is determined to achieve the following five strategic imperatives:
• Improving our administrative governance and skills base to create an effective and responsive Department that is accountable and achieves a clean audit;
• implementing the Radical Socio-Economic Transformation programme with gusto;
• strengthening the delivery of roads and transportation infrastructure programmes;
• engaging communities and stakeholders as partners, as well as strengthening existing partnerships, in implementing Departmental programmes; and
• creating an effective traffic management and a safe road environment to reduce road crashes and fatalities.
PERFORMANCE DELIVERY ENVIRONMENTDuring the next Medium-Term Expenditure Framework, the Department has made a conscious decision to vehemently promote and implement radical socio-economic transformation. We will be supporting the principles of radical socio-economic transformation through our Integrated Transport Sector Socio-Economic Transformation methodology encapsulated in our IGULA (“Inclusive Growth, Unity and Economic Liberation of Africans in particular and Blacks in General”) Programme. Our focus is on empowering Africans and on transforming the transport sector in line with the demographics of the Province.
This decision will serve as a foundation as we undertake our core functions and as we support the other government’s mandates, particularly those in respect of, poverty alleviation, job creation and infrastructure development. Other spin-offs are changed patterns of ownership and management control in businesses; skills development; enterprise and supplier development; as well as socio-economic development.
Our IGULA Programme and supporting policies are implemented while focussing on the entire transportation sector and the need to ensure that we continue to unlock the growth of our Province’s economy especially as KwaZulu-Natal is the main link to the continent and other economic hubs with Durban being Africa’s busiest general cargo port and
2019 - 2020 KZN TRANSPORT ANNUAL REPORT22
PART A: GENERAL INFORMATION
home to one of the largest and busiest container terminals in the Southern Hemisphere.
The Department will continue to engage with all our stakeholders in the transport subsectors on our policies, plans and planned activities. This engagement includes service delivery as well as transformation issues.
Our engagements also extend to our counterparts in the municipal and national sphere where we are closely involved in planning and sector-specific issues as well as in lending support where there are capacity constraints. This support is extended to the municipalities in respect of their transportation services.
As indicated in the preceding paragraphs and in our last APP, the Department’s key focus for the current and forthcoming years is to achieve radical socio-economic transformation. To this end, the Department has committed 73 percent of our total budget into roads and transportation infrastructure that create equitable access to communities and to support and promote economic development and growth.
In our quest to create equitable access through an equitable and maintained road network, our primary infrastructure activities are dominantly on road infrastructure development in the rural areas. Our efforts have been yielded an 164 additional kilometres of road being constructed during 2017/2018. These additional kilometres of road will improve communities’ access roads to schools, clinics, social and economic infrastructure so that communities are properly and safely connected to essential services.
Furthermore, while we are undertaking our construction and maintenance activities, we will continue advancing work to the identified target groups as per our IGULA Programme.
During 2017/2018, the construction of P577 was completed and the road is opened to traffic. The Ethekwini Municipality is currently constructing the last section of the BRT lanes on the southern section of the road near Pinetown.
The higher economic activity and higher traffic volumes in urban areas has resulted in increased and more frequent maintenance needs. Hence during 2017/2018, our infrastructure maintenance activities were predominantly on the road network in urban areas.
Our construction activities during 2017/2018 were primarily in rural areas where the need is greater. Our activities yielded a further 18 major vehicle bridges and 6 pedestrian bridges in the rural areas, thereby improving access to more communities.
We will continue to implement our successful Zibambele Programme and the Vukuzakhe Emerging Contractor Development Programme which have yielded many positive results in terms of social and economic development.
The Department faces a constant and ongoing battle in respect of adequate resource allocation, especially in respect of financial resources, to ensure that acceptable standards of service for the Provincial Road Network are continued. The situation is exacerbated by the need to ensure that maintenance of the road network is unbroken and that it is renewed or replaced timely so that it is well-managed and preserved.
The situation was worsened last year as our conditional grant funding decreased in an environment of consistently very limited financial resources, thereby affecting our ability to provide the services we would have liked to.
These challenges and constraints have placed the Department in a slightly negative light as 54% of the citizens of the Province have rated the Department as performing poorly to fairly in the area of provincial road maintenance. While the results indicate less than favourable performance, we are mindful that communities always demand and expect that roads in their areas be upgraded to blacktop, oblivious of the need to prioritise maintenance and upgrading activities for the benefit of the Province as a whole.
It must be noted that while we view the outcome of the survey in respect of road maintenance as less than favourable, the report on the outcomes of the entire survey state that “the provincial government was also rated positively by a considerable number of citizens on “maintaining provincial roads” (45,6%)”.
Despite these challenges, we are brazenly aware of the need to have transport infrastructure that is well-maintained so that it supports economic development, thereby unlocking economic potential of the Province and country and of the critical role we play in linking rural communities to educational, social and educational services. Hence we persevere in our endeavours by streamlining our plans and projects. We thus give priority to projects that facilitate and support economic development and access.
The limited resource availability over the years, has resulted in backlogs in terms of providing a minimum equity network in the Province, despite our concerted efforts at creating access but we are making concerted efforts at
2019 - 2020KZN TRANSPORT ANNUAL REPORT 23
PART A: GENERAL INFORMATION
reducing this backlog in the long term despite challenges in respect of funding, etc.
The reduction of the backlogs, both in construction and maintenance, will always rely on the budget allocation received. As an example, the Department presently requires approximately R16 billion per year to adequately maintain the road network. Our current Maintenance budget is only R3,67 billion, which is significantly lower than the required budget. The effect of this has seen our blacktop road condition deteriorate from 36% to 57% in the “poor to very poor road” category while the industry desired target is less than 10%.
Similarly in respect of construction, the Department requires R16 billion per year to achieve an equitable road network and our current budget is only R3,44 billion. Despite these funding shortfalls the Department is still managing to reduce the shortfall.
• The current backlog may be quantified as 9,237kms. This figure has been determined as follows:
• the extent of the minimum equity network was originally determined in 1999 as 42,000km length. This was identified through an extensive consultation process with rural communities to identify rural access needs;
• In 2005, a desktop study was undertaken to verify the extent of the minimum equity network;
• In 2006, this was adjusted to take into account the change in the boundaries of the Province. The extent of the minimum equity network was assessed as approximately 42,025km in length. The extent of the network with an indication of the backlog, rounded to the closest 100km, as at 30 June 2018, is as follows :
Provincial road classMinimum Equity Network (kms)
Existing (kms) Gap (kms)
Provincial Main Roads (P) 13 300 13 164 136Provincial District Roads (D) 14 000 11 886 2 114Provincial Local Roads (L) 14 725 7 930 6 795Total 42 025 31 979 9 046
The other major challenge that the Department is constantly faced with is the increased demand for both construction and maintenance of the road network despite the disproportionate increase in funding. As we have alluded to in our previous APP, previous experience indicates that maintenance activities have been allocated 60% of the budget expenditure with the balance of 40% being allocated to construction.
In an effort to best meet our demands, we ensure that our MTEF business plans are strategically based on the necessary social, economic and environmental requirements of the Province and country. Furthermore, our revised 10 year Road Asset Management Plan, sets out detail on allocating more budget towards maintenance activities which will be boosted by the additional budget from the Provincial Road Maintenance Conditional Grant.
The rising fuel costs have also impacted on the Department and our operations. These increases impact upon budgets and have had a slight effect on delivery in respect of infrastructure and on our enforcement activities.
A serious challenge to our planning and delivery relates to the political environment that affects our prioritisation of projects. Sometimes the list of projects that are planned for the MTEF change drastically as political objectives are different to technical objectives. This adversely affects the Department as the projects that are under design and those under review for approval purposes become redundant and different projects become a priority.
Changes in project prioritisation mean that projects with approved designs do not get to be constructed in the planned financial year and are deferred to other financial years. This results in wasteful expenditure as the condition of the road deteriorates with every passing year, a new design is required which necessitates more funds for the same project prior to construction commencement.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT24
PART A: GENERAL INFORMATION
Our efforts at delivering services are also faced with other challenges as highlighted below :
• new ward councillors are elected resulting in new political priorities;
• the demand for the upgrading of gravel roads to blacktop or concrete surface has increased; and
• communities have prevented maintenance teams from carrying out blading or gravelling projects that will assist in improving the condition of the road, as they are demanding road upgrades.
To address these issues, the Department is currently rolling out a prioritisation model for the upgrade of roads and bridges and it is anticipated that there will be greater awareness amongst communities regarding the selection of projects resulting in fewer challenges as the project prioritisation system will allow for the comparison and prioritisation of projects on a technical and scientific basis.
Community interference in current projects has also increased with the implementation of radical socio-economic transformation as some local business fora are stopping work to demand that they be permitted to participate in those projects through sub-contracting. This situation will have to be managed within the parameters of the Preferential Procurement Policy Framework Act Regulations.
This situation is compounded by the Vukuzakhe Association as they are expecting that the sub-contracted works will be allocated to only members of their Association.
In addition, Military Veterans are also expecting the Department to have set aside contracts that will only be allocated to its members and they are expecting the Department to amend existing policies to allow companies owned by Military Veterans to participate in all Regions and not have boundaries like other companies.
While we implement the principles of radical socio-economic transformation through targeted-work (Vukuzakhe and target groups), we will have to undertake careful monitoring of our projects in order to ensure that job creation targets are met on a project level while we still deliver quality assets.
The challenge of community expectations and co-operation is growing and is evident by the impact of the demands/influence by communities on how we execute our projects through service delivery protests and demands. Service delivery demands from communities are increasing and communities are becoming more vocal and an increasing hindrance to our service delivery.
The Water Use License Applications (WULA) provisions also require applicants to stipulate the volumes of water to be extracted from surrounding water sources during construction and if the area is badly affected by drought then the application is unsuccessful which can severely delay the start of projects. While there have been good rains, some parts of the country is still in a drought situation and the recovery has not been sufficient to relax the restrictions to water use. This impacts on some of our projects.
Departmental projects are also negatively affected by environmental factors. As an example of this, the Department utilises natural resources from borrow pits during construction. Sometime these become contaminated due to spillages etc. and the supply dwindles.
Furthermore, accessing gravel material from borrow pits is still a challenge with employees facing resistance from communities and some traditional leaders wanting the Department to pay royalties for the material taken out of borrow pits for road construction and maintenance activities. Royalties for materials mined can only be paid if these borrow pits are registered with the Department of Minerals and Energy. Secondly, this would have a significant cost increase for road building and maintenance. The Department is currently developing a strategy do deal with this issue.
The building of houses and structures in the country is also becoming a challenge as communities, obliviously, erect structures on the Department’s road reserve and building line requirements and these encroach upon the road reserve. Negotiations with these communities are then required in order to utilise the Department’s road reserve prior to any road construction occurring and frequently compensation is expected by community members before they relocate.
The Department’s challenge regarding uncoordinated planning outside of the formal urban areas with regard to the provision of mobility routes and access roads, with adequate road reserve width, continues. Consultation with the municipal planners and communities on the identification and reservation of land for road reserves, will continue.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 25
PART A: GENERAL INFORMATION
Similarly, the Department will continue liaising with municipalities and land owners in respect of Departmental participation in projects on urban access roads within dense settlement areas. This situation has arisen due to an obscuring of responsibilities in respect of roads between the Department and the municipalities but our involvement will continue as we do not want service delivery to be compromised.
We are also proud that, through the auspices of the Expanded Public Works Programme (EPWP), we have created almost 42,500 jobs during 2019/2020. Hence, the Department will continue to support the Expanded Public Works Programme’s (EPWP) job creation initiatives in labour intensive programmes through road maintenance and construction, due to the benefits on an economic and social level. The focus areas for EPWP include safety maintenance, routine maintenance, new infrastructure and special maintenance. The Labour Intensive Programmes are funded through the EPWP Integrated Grant, the Provincial Roads Maintenance Grant as well as the Equitable Share.
Our programmes, policies and activities continue to support provincial priority areas and objectives as they seek to institute food security; fight disease and poverty; empower Women, Youth, Persons with Disabilities and Military Veterans despite the downturn in the economy which results in funding limitations, deferring of projects to outer financial years and ultimately limitations on service delivery.
In an effort to further advance the principles and objectives of job creation and poverty alleviation through the EPWP, the Department will create awareness of these objectives with the members of the recently established Transportation Committees. It is envisaged that this awareness will cascade down to communities so that there is greater support for Departmental projects.
The freight industry continues to be an essential contributor to the economy’s growth and sustainability and the Department is continually monitoring trends in the industry to apply best practise that will yield benefits for all. The challenge of balancing the economic benefits of the freight industry against the need to preserve the Province’s road network while protecting the environment, is mammoth and an ongoing concern.
In order to mitigate this challenge, the Department will continue to implement the Performance Based Standards (PBS) system in respect of a heavy vehicle’s dynamics performance. PBS vehicles must comply with certain prescribed static and dynamic performance standards and by utilising better vehicle designs, the PBS initiative has the ability to distribute payloads in a more uniform and efficient manner while ensuring a safer operational standard. This results in extra carrying capacity of the heavy vehicles thereby improving the productivity of the vehicle and its operator. Ultimately, there is a reduction in the number of freight vehicles on the road network.
The project has grown within the Province and now extends to other sectors such as mining, fuel, light and heavy motor vehicles, sugar, molten aluminium and alcoholic beverages. Needless to say, we hope to expand to more industries and yield greater benefits.
Public transport in the Province remains a mandate and a challenge that requires joint collaboration among the different spheres of government and the public transport industry itself. This is especially challenging in light of the instability in the industry and the increased prevalence of violent conflict in recent months due to route intruders.
Instability has continued to plague the public transport industry, despite efforts and interventions to minimise conflict. The Department will continue to engage the services of experts in the area of conflict resolution due our limited capacity in this area so that we can address this major challenge and ensure the safety of our commuters.
The role of municipalities as well as their limited capacity in public transport cannot be overlooked and as such the Department will continue to provide continuous training to municipal employees dealing with issues of public so that regulation of public transport in the Province improves.
The Department will persist with our endeavours to reduce the scourge of public transport violence that negatively impacts upon commuters and society at large. We will strengthen and solidify our co-operation and co-ordination activities with other enforcement agencies (SAPS, Crime Intelligence, Organised Crime Unit and Department of Justice) to reduce such negativities on our roads.
We will continue fostering the partnership we have developed over the years with SANTACO, not only in our quest to promote good customer service and taxi driver behaviour but also to reduce fatalities on the road and to promote road safety in general.
A decision was taken prior to the 2018/2019 financial year that the provision of learner transport would move from the Department of Transport to the Department of Education. Hence the Department’s 2018/2019 APP was void of any projected targets in respect of learner transport. However, that original decision was rescinded and the responsibility
2019 - 2020 KZN TRANSPORT ANNUAL REPORT26
PART A: GENERAL INFORMATION
for learner transport has now reverted back to the Department of Transport.
The Department’s strategic goal of reducing fatalities has proved to be a difficult one to meet. This is due to the fact that we are not in pure control of the goal and we rely heavily on the motoring public and other road users to support our efforts at reducing accidents and fatalities.
Despite our efforts at educating the public on road safety matters, patrolling the roads and enforcing the rules of the road, there has been an increase in the number of fatalities on the roads. There were 1,819 fatalities in the 2014/2015 financial year (baseline for the MTSF) and this number has increased, on average, by 374 fatalities annually, in the last 3 financial years. Clearly this is a dismal situation that we hope to reverse.
Our slogan of “Road Safety is Our Collective Responsibility” clearly spells out that we require co-operation and acceptance of responsibility from all stakeholders, if we are to succeed in our efforts. Hence we are continually seeking new ways to approach road safety so that people’s lives are saved by reducing crashes. We will also continue with our law enforcement activities, awareness programmes and partnerships developed with organisations in the sector. Clearly, we need joint and collaborative efforts at curbing fatalities and crashes.
Ultimately there is a need to change road user behaviour in the country which will contribute positively to this Province as well, especially as our Province has many visitors from other provinces during peak seasons and for major events hosted in the Province.
The Department’s interventions at strengthening our traffic law enforcement activities include increasing visibility on the road, especially during peak traffic weekends and holidays, and at times when many road crashes occur. As part of these efforts to achieve our goal of reducing fatalities, our “Closing the Ranks” programme which entails staging road blocks from Thursday through to Sundays and the “Safety Fridays” campaigns continue, in conjunction with all other law enforcement agencies.
The Department’s efforts at enforcement have been frustrated by the ever-increasing protests against a lack of service delivery, growing unemployment and rising fuel prices. These protests have resulted in protesters blockading national and provincial roads. Coupled with the blockades, there have been instances of looting, violence, arson and damage to the road infrastructure by the protesters.
Furthermore, the emerging trend of blockages on the key corridors by truck drivers has resulted huge traffic disruptions, traffic backlogs, delays in the delivery of goods and compromised safety of all other road users. The Department’s law enforcement officers have had to stretch already limited resources to conduct intensive and extended enforcement functions in patrolling and clearing roads that have been blockaded as well as clear backlogs in traffic. This has impacted upon planned enforcement activities as employees have to be redeployed to problem areas.
These service delivery protests not only impact on Departmental employees and operations but also cause huge losses to the economy of the country as major routes are affected, key infrastructure is damaged and freight is either damaged or looted with trucks being burned.
The Department’s enforcement activities and successes have been dealt a blow by some magistrates in the Pietermaritzburg jurisdictional area withdrawing speed prosecution cases where the range has exceeded 400 meters. However, this range was previously set at 500 metres by the 2012 prosecution guidelines. The magistrates are now using 1997 guidelines which frustrates our efforts. This issue is being addressed with the Road Traffic Management Corporation.
The Department’s efforts at improving road safety, reducing accidents and reducing fatalities through our strategies and programmes in the public transport and law enforcement units will continue, despite the challenges faced as the number of fatalities and crashes resulting in fatalities remain a major concern for the Department.
The Department continues supporting government’s mandate of job creation, creating sustainable communities, eliminating poverty and promoting economic transformation through all our policies, activities and programmes.
Our commitment to creating jobs is also underpinned by the results of the Statistics South Africa’s 2018 KwaZulu-Natal Citizen Satisfaction Survey where the results indicate that almost 63% of the citizens of the Province ranked job creation as their main priority. Clearly as government, we are bound to address citizens’ needs through our EPWP and IGULA Programme; amongst others.
The Department is now also faced with the ever-increasing threats of disruptions to electricity supply through load shedding. Not only does this impact upon employees’ productivity but it also results in disruptions to services at
2019 - 2020KZN TRANSPORT ANNUAL REPORT 27
PART A: GENERAL INFORMATION
our various licensing offices. This ongoing challenge seems to be a never-ending threat and contingency plans to economically mitigate the blackouts, will have to be explored.
The Department is committed to addressing all challenges we face in delivering services. However it must be acknowledged that not all challenges can be mitigated (eg. drought implications, rising fuels costs, escalating number of service delivery protests, etc). Nonetheless all necessary steps to mitigate challenges that are within our control are continually explored.
ORGANISATIONAL ENVIRONMENTThe Department’s commitment to Radical Socio-Economic Transformation is firm and this is now primarily our strategic policy thrust. This informs all activities of our Department both internally, including human resources, and in terms of our relations with all our stakeholders including suppliers, service providers, targeted groups and most importantly citizens.
In the past few months we have conducted a review of, and developed new policies, systems and processes to effectively increase participation of, particularly Africans, and Blacks in general, in the transport sector value chain.
As part of our Radical Socio-Economic Transformation interventions, we are promoting all the targeted sectors which are Women, Youth, Persons with Disabilities, Military Veterans, and Widows in the Public Transport sub-sector. The Department will strive to achieve set targets in all our procurement. These targets are 35% Youth, 30% Women, 5% Persons with Disabilities and 10% Military Veterans.
Targeted groups continue to be dominant in all Departmental programmes, policies and functions especially in those relating to the employment of labour in infrastructure construction and maintenance projects, through our empowerment initiatives, our transformation mandates and in our recruitment processes. The Department will continue to consciously give preference to both Women and Persons with Disabilities when we are able to fill vacant posts.
While implementing plans to satisfy these government’s mandates, the Department remains committed to good governance which is evidenced by our performance in the Management Performance Assessment Tool (MPAT).
There was a decrease (from 66% to 55%) in our overall Management Performance Assessment Tool (MPAT) results from 2016 to the 2017 results. There was a decrease in scores in Governance and Accountability (KPA 2) from 70% to 50%; and Financial Management (KPA 3) from 89% to 60% Key Performance Areas (KPAs) with an improvement in the Strategic Management (KPA 1) from 80% to 100% and in the Human Resource Management KPA (KPA 3) from 36% to 38%.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 29
PART B: PERFORMANCE INFORMATION
PERFORMANCE INFORMATION BY PROGRAMMEPROGRAMME 1: ADMINISTRATION
The purpose of this programme is to provide the Department with the overall management and administrative, strategic, financial and corporate support services in order to ensure that it delivers on its mandate in an integrated, efficient, effective and sustainable manner.
This includes publicly funded goods and services utilised for governance, management, research and administration, as well as general office services, e.g. cleaning and security services.
Programme 1 includes the Office of the MEC, Management of the Department, Corporate Support and Departmental Strategy.
Linking performance with budgets
Programme/
Sub Programme
2019/19 2018/19
Final
Appropriation
Actual Ex-penditure
(Over)/
Under Expenditure
Final
Appropriation
Actual Expenditure
(Over)/
Under Expenditure
R’000 R’000 R’000 R’000 R’000 R’000
Administration
Office of the MEC 10 790 10 789 1 14 073 14 073 -
Management 7 281 7 281 11 924 11 924 -
Corporate Support 385 530 377 456 8 074 346 065 346 065 -
Departmental Strategy 38 511 38 511 19 883 19 883 -
Total 442 112 434 037 8 075 391 945 391 945 -
2019 - 2020 KZN TRANSPORT ANNUAL REPORT30
PART B: PERFORMANCE INFORMATION
PROGRAMME 2: TRANSPORT INFRASTRUCTURE
The purpose of this programme is to promote accessibility and the safe, affordable movement of people, goods and services through the delivery and maintenance of transport infrastructure that is sustainable, integrated and environmentally sensitive, and which supports and facilitates social empowerment and economic growth.
This programme includes all expenditure of a current and capital nature relating to the planning, design, construction, rehabilitation, maintenance and repair of all infrastructure supporting all modes of transport. It also includes project expenditure on the Expanded Public Works Programme done in support of the infrastructure provision.
The programme consists of five sub-programmes in line with the sector specific budget format, namely: Programme Support Infrastructure, Infrastructure Planning, Infrastructure Design, Construction and Maintenance.
RECENT OUTPUTSImproving road infrastructure is central to the development of the provincial economy. The Department continues to invest the bulk of its budget into existing infrastructure to improve the maintenance and reduce the backlog of ailing roads and bridges.
The challenges which affected the department was that, many of our infrastructure projects were hard hit by heavy flooding in the province. Compounding our challenges was that the Department had to terminate approximately 25 contracts under its Capital Projects which included bridges and road contracts. This delayed the commencement of new projects.
The Department is also changing its approach to planning where it is now focusing on building fewer projects and finishing them on time. This will enhance the Department’s planning and reduce despondency with communities. Despite all the challenges the Department was able to complete many infrastructure projects, including tarred roads, gravel and new bridges.
Linking performance with budgets
Programme/
Sub Programme
2019/20 2018/19
Final Appropri-ation
Actual Expenditure
(Over)/
Under Expenditure
Final Appro-priation
Actual Ex-penditure
(Over)/
Under Expenditure
R’000 R’000 R’000 R’000 R’000 R’000
Transport Infrastructure
Programme Support Infrastructure 802 566 802 565 1 669 440 669 440 -
Infrastructure Planning 20 461 20 461 - 36 787 36 787 -
Infrastructure Design 43 819 43 819 - 37 929 37 929 -
Construction 3 423 709 1 957 697 1 466 012 3 204 174 2 938 234 265 940
Maintenance 3 462 131 3 290 880 171 251 3 390 708 3 420 337 (29 629)
Total 7 752 686 6 115 422 1 637 264 7 339 038 7 102 727 236 311
2019 - 2020KZN TRANSPORT ANNUAL REPORT 31
PART B: PERFORMANCE INFORMATION
PROGRAMME 3: TRANSPORT OPERATIONS
The purpose of this programme is to plan, regulate and facilitate the provision of integrated land transport services through co-ordination and co-operation with national planning authorities, CBO’s, NGO’s and the private sector in order to enhance the mobility of all communities particularly those currently without or with limited access.
This includes all costs involved in Public transport management and service delivery including the Planning, co-ordination of the operator in the transport industry.
This programme provides for the management of public transport contracts including the management of the subsidies for the public transport operators, this includes the payment of subsidies for providing services to the community based on an agreement between the government and the operator. This programme also provides for the subsidized dedicated learner transport services. Department of Education identifies the schools where the service is then provided. This also includes the monitoring of operators and subsidies in terms of the national and provincial legislation to ensure safety of commuters and learners.
The programme consists of three sub-programmes, in line with the sector specific budget format, namely: Programme Support Operations, Public Transport Services and Transport Safety and Compliance.
RECENT OUTPUTSThe Department has continued to drive transformation in this sector with 220 busses now owned by Africans and the value for these subsidized contracts is sitting at more than R272 million. The Department also continues to run the Learner Transport Services which has ensured increased access to schooling particularly for children in rural areas.
Our efforts to reduce road carnage yielded positive results in 2019/2020 this year when we reduced road crashes and fatalities during Easter holidays. This was attributable to the integrated safety plan we developed with all law enforcement agencies in the province. We will continue to advance road safety education and awareness. Our plan is to have programmes that will impact on changing the mindset of road users.
Linking performance with budgets
Programme/
Sub Programme
2018/19 2018/19
Final Appropriation
Actual Expenditure
(Over)/
Under Ex-penditure
Final Appropriation
Actual Expenditure
(Over)/
Under Ex-penditure
R’000 R’000 R’000 R’000 R’000 R’000
Transport Operations
Programme Support Operations 18 952 18 921 31 41 872 41 872 -
Public Transport Services 1 730 607 1 730 605 2 1 784 411 1 784 411 -
Transport Safety and Compliance 62 731 62 595 136 65 020 65 020 -
Total 1 812 290 1 812 121 169 1 891 303 1 891 303 -
2019 - 2020 KZN TRANSPORT ANNUAL REPORT32
PROGRAMME 4: TRANSPORT REGULATION
The purpose of this programme is to ensure the provision of a safe transport environment through the regulation of traffic on public infrastructure, law enforcement, implementation of road safety education and awareness programmes and the registration and licensing of vehicles and drivers. This includes the following all costs related to overall management of road traffic and safety in the Province.
The programme consists of four sub-programmes in line with the sector specific budget format, namely: Programme Support Regulation; Transport Administration and Licensing; Operator License and Permits; and Law Enforcement.
RECENT OUTPUTSWe continued expanding our services to all corners of KwaZulu-Natal as we have increased our licensing authority to 85 outlets in the province. Remarkable progress has been made in regard to the application and issuing of operating licences following the decision to uplift the moratorium on operating licences.
Since the upliftment of the moratorium more than 2 599 operating licences have been issued. In total, we have more than 18 000 operating licenses that have been issued in the province. Our taxi industry also continues to have relative stability. The Department has opened four new offices to facilitate the applications and issuance of operating licenses. These are located in Ladysmith, Empangeni, Port Shepstone and Mbazwana.
This is in addition to the already existing Head Office in Pietermaritzburg. This will improve stability and regulations in the taxi industry, thus working towards building peace and end conflict.
Linking performance with budgets
Programme/
Sub Programme
2019/20 2018/19
Final Appropriation
Actual Expenditure
(Over)/
Under Expenditure
Final Appropriation
Actual Expenditure
(Over)/
Under Expenditure
R’000 R’000 R’000 R’000 R’000 R’000
Transport Regulations
Programme Support Regulation 8 000 8 000 - 9 104 9 104 -
Transport Admin and Licensing 137 290 137 290 - 154 698 154 698 -
Operator Licence Permit 61 501 61 500 1 59 571 59 571 -
Law Enforcement 719 610 719 608 2 667 412 667 412 -
Total 926 401 926 398 3 890 785 890 785 -
PART B: PERFORMANCE INFORMATION
2019 - 2020KZN TRANSPORT ANNUAL REPORT 33
PART B: PERFORMANCE INFORMATION
PROGRAMME 5: COMMUNITY BASED PROGRAMME
Purpose: The purpose of this programme is to direct and manage the implementation of programmes and strategies that lead to the development and empowerment of communities. These include the following:
• The strategic planning and monitoring of programmes to further BBBEE.• Programmes to bring about the development and empowerment of impoverished communities.• The co-ordination of EPWP in the province.
The programme consists of four sub-programmes in line with the sector specific budget format, namely: Programme Support Community Based, Community Development, Innovation and Empowerment and EPWP Co-ordination and Monitoring.
The Strategic objectives for this programme are:
• BBBEE and SMME development; and• Job creation and poverty alleviation.
RECENT OUTPUTSThe Department has continued to contribute to job creation and poverty alleviation through this programme with the launch of Vukayibambe Routine Road Maintenance Programme and the National Youth Service.
Under Vukayibambe Routine Road Maintenance 3 200 young people have been employed for manual clearance of road verges with 800 of them being selected for training on accredited modules as part of their exit plan. Under the National Youth Service over 850 young people will be trained on accredited modules with 50 learners to be trained on accredited bricklaying apprenticeship through the Zibambele programme.
The Department took a decision to review the Vukuzakhe programme and realign the programme to the National Contractor Development Framework so that it complies with applicable legislation but still delivers the envisaged programme.
Linking performance with budgets
Programme/
Sub Programme
2019/20 2018/19
Final Appro-priation
Actual Expenditure
(Over)/
Under Expenditure
Final Appro-priation
Actual Expenditure
(Over)/
Under Ex-penditure
R’000 R’000 R’000 R’000 R’000 R’000
Community Based Programme
Programme Support Community Based 12 309 12 307 2 11 077 11 077 -
Community Development 564 295 269 3 535 3 535 -
Innovation and Empowerment 16 518 16 518 - 29 228 29 228 -
EPWP Co-Ordination and Monitoring 6 665 474 6 191 8 766 8 766 -
Total 36 056 29 594 6 462 52 606 52 606 -
2019 - 2020 KZN TRANSPORT ANNUAL REPORT34
Transfer Payments to all organisations other than public entities
Name of transferee
Type of Organisation
Purpose for which the funds were
used
Did the dept. comply with
S38(1)(j) of the PFMA
Amount transferred
R’000
Amount Spent by the
Entity
Reasons for the funds
unspent by the entity
Province Department Motor Vehicle Licences Yes 5 904 5 904 -
Construction and Engineering SETA’s
Departmental Agency
Skills Development Levy Yes 5 251 5 251 -
Bus Corporations Private Enterprise Bus Subsidies Yes 1 382 096 1 382 096 -
Santaco Non-Profit Institution Operational Costs Yes 3 007 3 007 -
Households Individuals
Claims Against the State, Expropriation of Land, Leave Gratuities and Injury on Duty
Yes 16 534 16 534 -
• Motor vehicle licences relate to the payment of motor vehicle licences, which is dependent on the number of vehicles and mechanical plant that the department owns and intends to purchase.
• Construction Education and Training Authority (CETA) and the Transport Education and Training Authority (TETA) levies are in terms of the Skills Development Act.
• Payments to Bus Operators relates mainly to the PTOG, which is a conditional grant aimed at subsidising road-based public transport services and to provide supplementary funding toward public transport services.
• Non-profit institutions is in respect of operational costs for the South African National Taxi Council (SANTACO) KZN as per the MOA signed between the department and the organisation. SANTACO is the official recognised representative of the mini taxi industry in the province. The transfer is to assist the organisation with the maintenance of 16 SANTACO offices by uplifting its operating and line functioning business standards and creating a more efficient and effective business orientated environment.
• Households caters for staff exit packages, external bursaries, injury on duty and claims against the state payments
Conditional Grants and Earmarked Funds Paid
Conditional Grants
The Department receives a Provincial allocation in the form of an equitable share and National conditional grant allocations for the maintenance and construction of road infrastructure, subsidising of bus transport in the Province and creating job opportunities through EPWP projects. Included under conditional grants is the Provincial Roads Maintenance Grant, Public Transport Operations Grant and the EPWP Incentive Grant.
PART B: PERFORMANCE INFORMATION
2019 - 2020KZN TRANSPORT ANNUAL REPORT 35
PART B: PERFORMANCE INFORMATION
A) PROVINCIAL ROADS MAINTENANCE GRANT
The Provincial Roads Maintenance Grant is for the maintenance and construction of road infrastructure in KZN.
The purpose of the grant is to supplement provincial roads investments and support preventative, routine and emergency maintenance on provincial road networks.
Department whom the grant has been transferred. KZN TransportPurpose of Grant Provincial Roads Maintenance GrantExpected outputs on grant Refer to Performance InformationActual outputs achieved Refer to Performance InformationAmount per amended DORA R1 882 781 000Amount transferred R1 882 781 000Reasons if amount as per DORA not transferred N/AAmount spent by department R1 882 781 000Reasons for funds unspent N/AMonitoring mechanism by the transferring department Monthly Reporting
B) PUBLIC TRANSPORT OPERATIONS GRANT
The purpose of this sub programme is to manage and monitor the provision of subsidised public transport services. The functions include ensuring that funds allocated to subsidise public transport service yield maximum outcome in reducing the burden of affordability, improving the standard and reliability of public transport, ensuring achievement of performance standards, ensuring economic transformation of the subsidised public transport sector and providing education and capacity building.
The Department provides subsidised public transport services which are funded through the Public Transport Operations Grant. The purpose of the Public Transport Operations grant is to provide supplementary funding for the provision of public transport services by contracts which are kilometer based that are affordable and supportive of the intermodal efficiencies to users of public transport. The aim is to ensure that user, especially the poor enjoy affordable public transportation. In many respects’ performance in the provision of the service has been above average.
Department whom the grant has been transferred. KZN TransportPurpose of Grant Provincial Roads Maintenance GrantExpected outputs on grant Refer to Performance InformationActual outputs achieved Refer to Performance InformationAmount per amended DORA R1 168 099 000Amount transferred R1 168 099 000Reasons if amount as per DORA not transferred N/AAmount spent by department R1 168 099 000Reasons for funds unspent N/AMonitoring mechanism by the transferring department Monthly Reporting
2019 - 2020 KZN TRANSPORT ANNUAL REPORT36
C) EXPANDED PUBLIC WORKS INTEGRATED GRANT FOR PROVINCES
The purpose of the EPWP Integrated Grant is to incentivize Provincial Departments to expand their work creation efforts through the use of labour-intensive delivery methods to improve the quality of life of the poor people and increase social stability through employing previously unemployed people to perform the infrastructure construction and maintenance activities. The employment of previously unemployed people contributes to the reduction of the levels of poverty and increases the levels of employment, skills development through work experience and sustainable work opportunities.
Department whom the grant has been transferred. KZN TransportPurpose of Grant EPWP Integrated Grant for ProvincesExpected outputs on grant Refer to Performance InformationActual outputs achieved Refer to Performance InformationAmount per amended DORA R74 146 000Amount transferred R74 146 000Reasons if amount as per DORA not transferred -Amount spent by department R74 146 000Reasons for funds unspent N/AMonitoring mechanism by the transferring department Monthly Reporting
EARMARKED FUNDS
a) Learner Transport
To purpose of Learner Transport is to:
• Provide equitable access to quality education for the people of KwaZulu-Natal• Improve access to quality education by providing safe, decent, effective, and integrated sustainable learner
transport.
Department whom the grant has been transferred. KZN Transport
Purpose of Allocation Learner Transport
Expected outputs on allocation Refer to Performance Information
Actual outputs achieved Refer to Performance Information
Amount per amended DORA R348 241 000
Amount transferred R348 241 000
Reasons if amount as per DORA not transferred N/A
Amount spent by department R348 417 000
Reasons for funds unspent N/A
Monitoring mechanism by the transferring department Quarterly Reporting
Donor Funding
No donor funding was received by the Department
PART B: PERFORMANCE INFORMATION
2019 - 2020KZN TRANSPORT ANNUAL REPORT 37
CAPITAL INVESTMENT
Table: Capital Investment
Infrastructure Projects
2019/20 2018/19
Final
Appropriation
Actual
Expenditure
(Over) / Under Expenditure
Final
Appropriation
Actual
Expenditure
(Over) / Under Expenditure
R’000 R’000 R’000 R’000 R’000 R’000
Existing Infrastructure Assets 4 891 004 3 316 372 1 576 523 5 274 470 5 038 159 236 311
Maintenance and Repairs 1 906 466 1 735 215 171 251 2 388 113 2 417 742 (29 629)
Upgrades and Additions 1 142 631 810 697 331 934 1 695 588 1 695 588 -
Rehabilitation, Renovations and Refurbishments
1 843 798 770 460 1 073 338 1 190 769 924 829 265 940
New and Replacement Assets 445 055 384 315 60 740 314 754 314 754 -
Non-Infrastructure 2 147 169 2 147 169 - 1 421 333 1 421 333 -
Capital 3 431 484 1 965 472 1 466 012 3 201 111 2 935 171 265 940
Current 1 906 466 1 735 215 171 251 2 388 113 2 417 742 (29 629)
Total 7 485 119 5 847 856 1 637 263 7 010 557 6 774 246 236 311
PART B: PERFORMANCE INFORMATION
2019 - 2020 KZN TRANSPORT ANNUAL REPORT38
PRO
GR
AM
ME
1: A
DM
INIS
TRAT
ION
Stra
tegi
c O
bjec
tive:
Impr
oved
Hum
an R
esou
rce
perfo
rman
ce b
y ac
hiev
ing
a D
PS
A A
sses
smen
t Sco
re o
f 70%
in 2
019/
2020
, the
reby
ena
blin
g th
e D
epar
tmen
t to
deliv
er s
ervi
ces
effic
ient
ly a
nd e
ffect
ivel
y
Perfo
rman
ce In
dica
tors
Actu
al Ac
hiev
emen
t 20
15/20
16 to
da
te
Actu
al Ac
hiev
emen
t 20
17/20
18
Actu
al Ac
hiev
emen
t 20
18/20
19
Plan
ned
Targ
et
2019
/2020
Actu
al Ac
hiev
emen
t 20
19/20
20
Devia
tion
from
plan
ned
targ
et to
Act
ual
Achi
evem
ent
2019
/2020
Com
men
t on
devia
tions
Huma
n Res
ource
perfo
rman
ce sc
ore
throu
gh th
e DPS
A Ass
essm
ent T
ool
75
%71
%-4
%
Vario
us hu
man r
esou
rce co
mpon
ents
have
conti
nuou
sly im
pleme
nted
sugg
estio
ns an
d/or im
prov
emen
t pla
ns as
per t
he D
epar
tmen
tal H
R Co
mpon
ents
Asse
ssme
nt Co
mmitte
e an
d also
the M
PAT
impr
ovem
ent p
lan
to im
prov
e the
over
all su
ppor
t ser
vice
prov
ided.
PRO
GR
AM
ME
2: T
RA
NSP
OR
T IN
FRA
STR
UC
TUR
E S
trate
gic
Goa
l: P
rovi
de m
obili
ty a
nd a
cces
sibi
lity
with
in th
e P
rovi
nce
to a
chie
ve 3
2,89
0 ki
lom
etre
s of
mai
ntai
ned
road
infra
stru
ctur
e by
202
0
Perfo
rman
ce In
dica
tors
Actu
al Ac
hiev
emen
t 20
15/20
16 to
da
te
Actu
al Ac
hiev
emen
t 20
17/20
18
Actu
al Ac
hiev
emen
t 20
18/20
19
Plan
ned
Targ
et
2019
/2020
Actu
al Ac
hiev
emen
t 20
19/20
20
Devia
tion
from
plan
ned
targ
et to
Act
ual
Achi
evem
ent
2019
/2020
Com
men
t on
devia
tions
Kilom
etres
of de
clare
d roa
d 32
165
32 82
533
238
33 10
033
663
563
An im
prov
emen
t in D
ata M
anag
emen
t wa
s the
reas
on fo
r the
over
ac
hieve
ment.
This
was
also
assis
ted
by im
prov
ed de
clara
tion p
roce
ss
enfor
ceme
nt.
Stra
tegi
c G
oal:
Pro
mot
e an
inte
grat
ed tr
ansp
orta
tion
syst
em th
roug
h de
velo
ping
3 IP
TN O
pera
tiona
l Pla
ns
Perfo
rman
ce In
dica
tors
Actu
al Ac
hiev
emen
t 20
15/20
16 to
da
te
Actu
al Ac
hiev
emen
t 20
17/20
18
Actu
al Ac
hiev
emen
t 20
18/20
19
Plan
ned
Targ
et
2019
/2020
Actu
al Ac
hiev
emen
t 20
19/20
20
Devia
tion
from
plan
ned
targ
et to
Act
ual
Achi
evem
ent
2019
/2020
Com
men
t on
devia
tions
Numb
er of
IPTN
Ope
ratio
nal P
lans
deve
loped
00
01
10
PART B: PERFORMANCE INFORMATION
2019 - 2020KZN TRANSPORT ANNUAL REPORT 39
Stra
tegi
c O
bjec
tive:
An
affo
rdab
le, b
alan
ced
and
equi
tabl
e tra
nspo
rt ne
twor
k by
con
stru
ctin
g 1,
090k
ms
of n
ew g
rave
l acc
ess
road
s, 6
5 pe
dest
rian
brid
ges
and
35 m
ajor
veh
icle
brid
ges.
Perfo
rman
ce In
dica
tors
Actu
al Ac
hiev
emen
t 20
15/20
16
Actu
al Ac
hiev
emen
t 20
17/20
18
Actu
al Ac
hiev
emen
t 20
18/20
19
Plan
ned
Targ
et
2019
/2020
Actu
al Ac
hiev
emen
t 20
19/20
20
Devia
tion
from
plan
ned
targ
et to
Act
ual
Achi
evem
ent
2019
/2020
Com
men
t on
devia
tions
Kilom
etres
of ne
w gr
avel
acce
ss ro
ads
cons
tructe
d12
4
164
104,9
7 20
0
12
,02
-188
Targ
et ha
s not
been
met
due t
o the
ca
ncell
ation
of th
e Vuk
uzak
he w
hich
has i
mpac
ted th
e Dep
artm
ent a
cross
all
regio
ns, a
n info
rmed
decis
ion w
as
taken
to co
nver
t all c
ontra
cts to
ZNT
41
97 an
nual
contr
act. H
owev
er, th
e co
ntrac
t doc
umen
ts we
re co
nstan
tly
being
chan
ged t
o add
and o
mit it
ems
withi
n the
user
man
ual a
nd B
oQ,
the ra
ndom
izatio
n of th
e con
tracto
r su
pplie
r list
had n
ot be
en fin
alize
d wh
ich de
layed
even
furth
er
New
pede
strian
bridg
es co
nstru
cted
12
6 0
3 0
-3
Targ
et wa
s not
met d
ue to
delay
s with
the
finali
satio
n and
appr
oval
of the
im
pleme
ntatio
n man
uals,
desig
ns an
d sp
ecific
ation
s for
plan
ned p
rojec
ts,
and p
oor p
erfor
manc
e by c
ontra
ctors
who a
band
on si
tes du
e to fi
nanc
ial
diffic
ulties
.
New
major
vehic
le br
idges
cons
tructe
d9
18
9
16
0 -1
6
Targ
et wa
s not
met d
ue to
delay
s with
the
finali
satio
n and
appr
oval
of the
im
pleme
ntatio
n man
uals,
desig
ns an
d sp
ecific
ation
s for
plan
ned p
rojec
ts,
and p
oor p
erfor
manc
e by c
ontra
ctors
who a
band
on si
tes du
e to fi
nanc
ial
diffic
ulties
. S
trate
gic
Obj
ectiv
e: A
fford
able
tran
spor
t inf
rast
ruct
ure
mai
nten
ance
so
that
30%
of t
he b
lack
top
road
net
wor
k is
in a
‘poo
r to
very
poo
r’ co
nditi
on b
y 20
19/2
020
Perfo
rman
ce In
dica
tors
Actu
al Ac
hiev
emen
t 20
15/20
16 to
da
te
Actu
al Ac
hiev
emen
t 20
17/20
18
Actu
al Ac
hiev
emen
t 20
18/20
19
Plan
ned
Targ
et
2019
/2020
Actu
al Ac
hiev
emen
t 20
19/20
20
Devia
tion
from
plan
ned
targ
et to
Act
ual
Achi
evem
ent
2019
/2020
Com
men
t on
devia
tions
PART B: PERFORMANCE INFORMATION
2019 - 2020 KZN TRANSPORT ANNUAL REPORT40
% of
blac
ktop r
oad n
etwor
k in a
“poo
r to
very
poor
” con
dition
35%
36%
57%
57%
53%
4%
Incre
ase i
n the
Reh
abilit
ation
inv
estm
ent h
as ca
used
an
impr
ovem
ent in
the n
etwor
k con
dition
, als
o coll
ectin
g the
pave
d netw
ork
cond
ition t
his fin
ancia
l yea
r has
as
sisted
in tr
ackin
g the
impr
ovem
ent in
the
cond
ition d
ata.
PRO
GR
AM
ME
3: T
RA
NSP
OR
T O
PER
ATIO
NS
Stra
tegi
c O
bjec
tive:
90%
(62,
100/
69,0
00) o
f all
publ
ic tr
ansp
ort o
pera
tors
are
fully
com
plia
nt w
ith th
e pu
blic
tran
spor
t pro
visi
ons
Perfo
rman
ce In
dica
tors
Actu
al Ac
hiev
emen
t 20
15/20
16 to
da
te
Actu
al Ac
hiev
emen
t 20
17/20
18
Actu
al Ac
hiev
emen
t 20
18/20
19
Plan
ned
Targ
et
2019
/2020
Actu
al Ac
hiev
emen
t 20
19/20
20
Devia
tion
from
plan
ned
targ
et to
Act
ual
Achi
evem
ent
2019
/2020
Com
men
t on
devia
tions
No. o
f com
plian
t pub
lic tr
ansp
ort
oper
ators
25 29
7
27
686
15 92
0
61
000
22 21
1 -3
8 789
U
nder
achie
veme
nt du
e to n
on
finali
satio
n of d
ata pu
rifica
tion p
roce
ss.
Stra
tegi
c O
bjec
tive:
The
pro
visi
on o
f a d
edic
ated
sub
sidi
sed
lear
ner t
rans
port
serv
ice
to 3
8,60
0 le
arne
rs id
entifi
ed b
y th
e D
epar
tmen
t of E
duca
tion
Perfo
rman
ce In
dica
tors
Actu
al Ac
hiev
emen
t 20
15/20
16 to
da
te
Actu
al Ac
hiev
emen
t 20
17/20
18
Actu
al Ac
hiev
emen
t 20
18/20
19
Plan
ned
Targ
et
2019
/2020
Actu
al Ac
hiev
emen
t 20
19/20
20
Devia
tion
from
plan
ned
targ
et to
Act
ual
Achi
evem
ent
2019
/2020
Com
men
t on
devia
tions
No. o
f lear
ners
trans
porte
d43
990
47 74
7
58
816
47 74
0
58
908
11
168
Cha
nge i
n num
bers
is du
e to
verifi
catio
n don
e by D
OE, h
ence
, the
incre
ase i
n lea
rner
numb
ers
Numb
er of
scho
ols re
ceivi
ng tr
ansp
ort
servi
ces
33
2
33
2
- Ta
rget
achie
ved
Stra
tegi
c O
bjec
tive:
The
mig
ratio
n of
72
mill
ion
tonn
es o
f fre
ight
from
road
to ra
il by
201
9/20
Perfo
rman
ce In
dica
tors
Actu
al Ac
hiev
emen
t 20
15/20
16 to
da
te
Actu
al Ac
hiev
emen
t 20
17/20
18
Actu
al Ac
hiev
emen
t 20
18/20
19
Plan
ned
Targ
et
2019
/2020
Actu
al Ac
hiev
emen
t 20
19/20
20
Devia
tion
from
plan
ned
targ
et to
Act
ual
Achi
evem
ent
2019
/2020
Com
men
t on
devia
tions
PART B: PERFORMANCE INFORMATION
2019 - 2020KZN TRANSPORT ANNUAL REPORT 41
Millio
n ton
nes o
f freig
ht mi
grate
d0
00
100 0
00
0 -1
00 00
0
We h
ave b
een u
nsuc
cess
ful in
re
achin
g the
targ
et for
seve
ral re
ason
s: 1.
We h
ave n
ot ma
nage
d to c
omple
te the
MOU
betw
een T
rans
net F
reigh
t Ra
il (TF
R) an
d KZN
DOT,
as T
FR
have
not s
igned
it ye
t. 2. W
e hav
e no
direc
t con
trol, n
or in
fluen
ce on
TFR
. 3.
We w
ere u
nsuc
cess
ful in
obtai
ning
a mee
ting d
ate w
ith T
FR du
e to t
heir
non r
espo
nse.
4. La
stly,
we ha
ve be
en
unab
le to
obtai
n acc
urate
data
from
TFR
to se
e if th
ere i
s an i
ncre
ase o
r de
creas
e in F
reigh
t tonn
age b
eing
move
d on r
ail.
PRO
GR
AM
ME
4: T
RA
NSP
OR
T R
EGU
LATI
ON
S
trate
gic
Goa
l: C
reat
e an
d pr
omot
e a
safe
road
env
ironm
ent b
y de
crea
sing
road
fata
litie
s by
30%
(545
/1,8
19) i
n 20
20
Perfo
rman
ce In
dica
tors
Actu
al Ac
hiev
emen
t 20
15/20
16
Actu
al Ac
hiev
emen
t 20
17/20
18
Actu
al Ac
hiev
emen
t 20
18/20
19
Plan
ned
Targ
et
2019
/2020
Actu
al Ac
hiev
emen
t 20
19/20
20
Devia
tion
from
plan
ned
targ
et to
Act
ual
Achi
evem
ent
2019
/2020
Com
men
t on
devia
tions
Numb
er of
fatal
ities (
per 1
00,0
00 ve
hicle
kms)
1 848
2 375
2 374
2 025
2 281
256
This
indic
ator is
not o
nly de
pend
ent o
n law
enfor
ceme
nt bu
t cuts
acro
ss ot
her
comp
onen
ts, i.e
. eng
ineer
ing an
d roa
d sa
fety
Stra
tegi
c O
bjec
tive:
Effe
ctiv
e re
gula
tion
and
law
enf
orce
men
t thr
ough
6,5
00 g
oal d
irect
ed m
ulti-
disc
iplin
ary
oper
atio
ns.
Perfo
rman
ce In
dica
tors
Actu
al Ac
hiev
emen
t 20
15/20
16 to
da
te
Actu
al Ac
hiev
emen
t 20
17/20
18
Actu
al Ac
hiev
emen
t 20
18/20
19
Plan
ned
Targ
et
2019
/2020
Actu
al Ac
hiev
emen
t 20
19/20
20
Devia
tion
from
plan
ned
targ
et to
Act
ual
Achi
evem
ent
2019
/2020
Com
men
t on
devia
tions
Numb
er of
goal
direc
ted m
ulti-
discip
linar
y ope
ratio
ns4 1
341 4
871 5
511 3
651 4
8111
6
1. Du
ring t
he fin
ancia
l yea
r 201
9/20 t
he
Dire
ctora
te ov
erac
hieve
d by 1
16 du
e to
more
inten
sified
oper
ation
s dur
ing th
e Ea
ster, F
estiv
e and
Octo
ber T
rans
port
Month
perio
ds an
d also
due t
o Safe
r Fr
idays
and C
losing
Ran
ks ca
mpaig
ns
throu
gh th
e ITL
EC st
ructu
res.
2.
In the
latte
r par
t of M
arch
2020
, due
to
the co
untry
wide
lock
down
the
reso
urce
s wer
e red
irecte
d to s
uppo
rt SA
PS du
ring t
he ro
adblo
cks
PART B: PERFORMANCE INFORMATION
2019 - 2020 KZN TRANSPORT ANNUAL REPORT42
PRO
GR
AM
ME
5: C
OM
MU
NIT
Y-B
ASE
D P
RO
GR
AM
ME
Stra
tegi
c G
oal:
Pro
mot
e su
stai
nabl
e ec
onom
ic tr
ansf
orm
atio
n th
roug
h de
velo
ping
2 e
mpo
wer
men
t pro
gram
mes
Perfo
rman
ce In
dica
tors
Actu
al Ac
hiev
emen
t 20
15/20
16 to
da
te
Actu
al Ac
hiev
emen
t 20
17/20
18
Actu
al Ac
hiev
emen
t 20
18/20
19
Plan
ned
Targ
et
2019
/2020
Actu
al Ac
hiev
emen
t 20
19/20
20
Devia
tion
from
plan
ned
targ
et to
Act
ual
Achi
evem
ent
2019
/2020
Com
men
t on
devia
tions
Numb
er of
empo
werm
ent p
rogr
amme
s de
velop
ed
00
11
0-1
The D
epar
tmen
t had
Dev
elope
d a D
raft c
once
pt for
a pr
ogra
mme
to co
nver
t clea
ning s
taff w
ho ar
e pa
rt of
the cl
eanin
g con
tract
into
coop
erati
ves h
owev
er; th
is ap
proa
ch
was n
ot su
cces
sful s
ince t
he in
terna
l co
nsult
ation
s rev
ealed
that
targe
ted
bene
ficiar
ies w
ere t
o be e
mpow
ered
thr
ough
the f
ull tim
e emp
loyme
nt op
portu
nities
as pa
rt of
the pr
opos
ed
Depa
rtmen
tal or
gano
gram
await
ing
appr
oval.
The
Dep
artm
ent o
pted t
o fol
low th
e sub
-contr
actin
g app
roac
h to
indire
ctly t
arge
t Clea
ning c
oope
rativ
es.
Stra
tegi
c O
bjec
tive:
Sup
port
and
prom
ote
econ
omic
tran
sfor
mat
ion
thro
ugh
the
awar
ding
of R
2,03
1 bi
llion
wor
th o
f con
tract
s to
em
ergi
ng
entre
pren
eurs
. (Vu
kuza
khe
cont
ract
ors
on G
rade
s 1
to 3
and
pub
lic tr
ansp
ort t
rans
form
atio
n co
ntra
cts)
Perfo
rman
ce In
dica
tors
Actu
al Ac
hiev
emen
t 20
15/20
16 to
da
te
Actu
al Ac
hiev
emen
t 20
17/20
18
Actu
al Ac
hiev
emen
t 20
18/20
19
Plan
ned
Targ
et
2019
/2020
Actu
al Ac
hiev
emen
t 20
19/20
20
Devia
tion
from
plan
ned
targ
et to
Act
ual
Achi
evem
ent
2019
/2020
Com
men
t on
devia
tions
Value
of co
ntrac
ts aw
arde
d to e
merg
ing
entre
pren
eurs
1 014
,652
71 1
2271
672
8,312
,3
The s
light
over
achie
veme
nt in
the va
lue of
contr
acts
awar
ded t
o Vu
kuza
khe a
s well
as th
e inc
reas
e in
esca
lation
for p
ublic
tran
spor
t res
ulted
in
the ov
erall
over
achie
veme
nt
Value
of co
ntrac
ts aw
arde
d to
Vuku
zakh
e con
tracto
rs on
Gra
des 1
to 3
(in R
milli
ons)
876
353
918
500
506,3
6,3
Targ
et me
t, eve
n tho
ugh t
here
was
a c
hang
e fro
m us
ing V
ukuz
akhe
Co
ntrac
tors t
o sou
rce fr
om al
l gra
de
1-3,
this c
ause
d a de
lay bu
t this
was
assis
ted by
CPG
imple
menta
tion
wher
e 35%
of th
e wor
k for
proje
cts
over
R10
m wa
s sub
contr
acted
to th
e low
er gr
ades
PART B: PERFORMANCE INFORMATION
2019 - 2020KZN TRANSPORT ANNUAL REPORT 43
Value
of pu
blic t
rans
port
trans
forma
tion
contr
acts
(in R
milli
ons)
138,6
174
204
216
222
6Th
e inc
reas
e in e
scala
tion r
esult
ed in
the
sligh
t incre
ase i
n the
subs
idy du
e
Stra
tegi
c O
bjec
tive:
Add
ress
ing
pove
rty a
llevi
atio
n an
d em
pow
erm
ent t
hrou
gh in
crea
sing
the
oppo
rtuni
ties
for j
ob c
reat
ion
by 4
0% (2
4,00
0 jo
bs)
Perfo
rman
ce In
dica
tors
Actu
al Ac
hiev
emen
t 20
15/20
16 to
da
te
Actu
al Ac
hiev
emen
t 20
17/20
18
Actu
al Ac
hiev
emen
t 20
18/20
19
Plan
ned
Targ
et
2019
/2020
Actu
al Ac
hiev
emen
t 20
19/20
20
Devia
tion
from
plan
ned
targ
et to
Act
ual
Achi
evem
ent
2019
/2020
Com
men
t on
devia
tions
No. o
f jobs
crea
ted58
459
49 50
1
44
008
58 26
0
47
305
-10 9
55
The
reas
on fo
r not
meeti
ng th
e ann
ual
Wor
k Opp
ortun
ity ta
rget
is du
e to
the de
lay in
repo
rting o
f Tra
ining
for
NYS
and P
WDs
whic
h too
k plac
e in
Febr
uary
and M
arch
2020
PART B: PERFORMANCE INFORMATION
2019 - 2020 KZN TRANSPORT ANNUAL REPORT44
KW
AZU
LU-N
ATA
L
AN
NU
AL
PER
FOR
MA
NC
E R
EPO
RTS
: 201
9/20
Sect
or: R
oads
and
Tra
nspo
rtPr
ogra
mm
e /
Subp
rogr
amm
e /
Perfo
rman
ce M
easu
res
Ac
tual
Achi
evem
ent
2016
/2017
Actu
al Ac
hiev
emen
t 20
17/20
18
Actu
al Ac
hiev
emen
t 20
18/20
19
Plan
ned
Targ
et
2019
/2020
Actu
al Ac
hiev
emen
t 20
19/20
20
Devia
tion
from
plan
ned
targ
et to
Act
ual
Achi
evem
ent
2019
/2020
Com
men
t on
devia
tions
AN
NU
AL
OU
TPU
TSPr
ogra
mm
e 1:
Adm
inis
trat
ion
DP
SA K
PA 1
Scor
e
55
550
Targ
et ac
hieve
d
DP
SA K
PA 2
Scor
e
25
250
Targ
et ac
hieve
d
DP
SA K
PA 3
Scor
e
60
58-2
No
n-im
pleme
ntatio
n of r
emed
ial ac
tions
/re
comm
enda
tions
as pe
r the
surve
y due
to
time c
onstr
aints
DP
SA K
PA 4
Scor
e
83
82-1
DP
SA K
PA 5
Scor
e
54
595
The h
uman
reso
urce
comp
onen
t imple
mente
d the
impr
ovem
ent p
lan as
sugg
ested
by th
e De
partm
ental
HR
Asse
ssme
nt Co
mmitte
e, i.e
. by i
ssuin
g inte
rnal
memo
s sen
sitisi
ng th
e ma
nage
ment
on th
e imp
ortan
ce of
cons
iderin
g the
polic
y req
uirem
ents
when
attra
cting
and
retai
ning a
n emp
loyee
; and
analy
sing e
xit
inter
views
ques
tionn
aires
and a
ct on
them
.
DP
SA K
PA 6
Scor
e
96
69-2
7
The t
arge
t was
mea
nt to
be 69
% an
d not
96%
, loo
king a
t the s
core
achie
ved f
or th
e pas
t thre
e ye
ars o
n this
spec
ific K
RA. A
s a re
sult,
this
typing
erro
r will
be co
rrecte
d in t
he ne
ar fu
ture.
The D
epar
tmen
t actu
ally a
chiev
ed 10
0% on
thi
s KRA
.
DP
SA K
PA 7
Scor
e
94
940
Targ
et ac
hieve
d
DP
SA K
PA 8
Scor
e
75
73-2
Imple
mente
d exp
edite
d pro
cess
es fo
r gr
ievan
ce an
d misc
ondu
ct re
solut
ion,
enha
nced
the c
ollec
ted ba
rgain
ing an
d Tas
k Te
am pr
oces
ses,
impr
oved
man
agem
ent
supp
ort a
nd st
aff ca
pacit
ation
and s
tream
lined
pr
oces
ses t
o com
ply w
ith tim
efram
es.
PART B: PERFORMANCE INFORMATION
2019 - 2020KZN TRANSPORT ANNUAL REPORT 45
Prog
ram
me
2: T
rans
port
Infr
astr
uctu
re
Infr
astr
uctu
re P
lann
ing
Numb
er of
kil
ometr
es
of su
rface
d ro
ads v
isuall
y as
sess
ed
as pe
r the
ap
plica
ble
TMH
manu
al
3 751
3 945
3 950
3 950
7 994
4 044
The t
arge
t was
surp
asse
d in o
rder
to ha
ve
a com
plete
pave
d data
set fr
om on
e yea
r as
a bas
e line
for a
netw
ork m
odell
ing an
alysis
in
effor
ts to
impr
ove t
he as
set m
anag
emen
t lev
el of
the de
partm
ents
RAMS
. This
was
also
pa
rt of
a valu
e-ad
ded s
ervic
e to h
ave t
he fu
ll ne
twor
k uplo
aded
onto
Insigh
t, an o
nline
data
visua
lisati
on pl
atfor
m.
Numb
er of
kil
ometr
es
of gr
avel
road
s visu
ally
asse
ssed
as
per t
he
appli
cable
TM
H ma
nual
7 510
7 802
7 900
7 900
5 721
,30-2
178,7
0 T
he ta
rget
was n
ot me
t due
to th
e prio
ritisa
tion
of the
pave
d netw
ork a
nalys
is to
grad
ually
im
prov
e the
depa
rtmen
ts RA
MS. T
he un
pave
d ne
twor
k is w
ithin
DoRA
requ
ireme
nts
PART B: PERFORMANCE INFORMATION
2019 - 2020 KZN TRANSPORT ANNUAL REPORT46
QU
AR
TER
LY O
UTP
UTS
PRO
GR
AM
ME
2: T
RA
NSP
OR
T IN
FRA
STR
UC
TUR
E C
onst
ruct
ion
Kilom
etres
of
grav
el ro
ads
upgr
aded
to
surfa
ced r
oads
102
115
59,88
6019
,45-4
0,55
Targ
et wa
s not
met d
ue to
an al
armi
ng
incre
ase o
f poo
r per
forma
nce b
y the
co
ntrac
tors f
or pr
ojects
that
were
activ
e on
site,
whic
h mea
nt tha
t som
e of th
ese
contr
actor
s had
to be
term
inated
and t
hen
the re
maini
ng w
ork r
e adv
ertis
ed. T
he op
en
tende
r pro
cess
was
going
to ta
ke a
longe
r tim
e so
the D
epar
tmen
t dec
ided t
o use
an ex
isting
ap
prov
ed fr
amew
ork c
ontra
ct. H
owev
er,
delay
s wer
e enc
ounte
red a
s the
re w
as a
bottle
neck
with
in the
SCM
proc
ess.
Anoth
er
contr
ibutin
g fac
tor w
as al
so th
e fac
t that
were
no pa
nel fo
r Con
sulta
nts ap
point
ed fo
r Ca
pital
proje
cts w
hich r
esult
ed in
using
Are
a Ba
sed C
onsu
ltants
whic
h wer
e inte
nded
to
supp
ort th
e reg
ions w
ith re
giona
l pro
jects.
This
ca
used
furth
er de
lays i
n fina
lising
spec
ificati
on
docu
ments
as so
me co
nsult
ants
didn’t
have
ad
equa
te re
sour
ces.
Affec
ted pr
ojects
are s
uch
as th
e upg
rade
of M
ain R
oads
P28
1 (fro
m 46
.4 kil
ometr
es to
53.1
kilom
etres
) and
P17
(fro
m 39
kilom
etres
to 47
kilom
etres
) in M
singa
, P8
-3 (f
rom
18 ki
lometr
es to
23 ki
lometr
es) a
nd
P318
-1 (f
rom
13.8
kilom
etres
to 25
kilom
etres
) in
Dr N
kosa
zana
Dlam
ini Z
uma,
P127
-2 (f
rom
18 to
21.1
kilom
etres
) in Im
pend
le
Numb
er
of m²
of
surfa
ced r
oads
re
habil
itated
2 408
223
1 683
719
1 874
219,0
22 5
00 00
094
9 648
,15-1
550 3
51,85
Targ
et ha
s not
been
achie
ved d
ue to
the
follow
ing: 1
. Dela
ys in
obtai
ning a
ppro
val fo
r ZN
T419
8/17T
quota
tion d
ocum
ent. 2
. Dela
ys
in su
bmiss
ion of
desig
n and
docu
ments
for
quota
tions
by co
nsult
ants.
3. D
elays
in
awar
ding o
f con
tracts
that
were
adve
rtised
in
Octob
er 20
19.
Numb
er
of sq
uare
me
tres o
f no
n-mo
torise
d tra
nspo
rt fac
ility
cons
tructe
d
84 59
253
981
9 936
,4625
000,0
012
807,8
7-1
2 192
,13 T
he ca
ncell
ation
to us
e Vuk
uzak
he to
im
pleme
nt the
se pr
ojects
caus
ed de
lays a
s so
me of
thes
e pro
jects
were
near
ly at
awar
d sta
ge an
d wer
e halt
ed to
be re
-adv
ertis
ed
PART B: PERFORMANCE INFORMATION
2019 - 2020KZN TRANSPORT ANNUAL REPORT 47
Mai
nten
ance
Numb
er of
sq
uare
metr
es
of su
rface
d ro
ads r
esea
led
2 944
842
764 2
2299
3 961
,4650
0 000
374 5
82,15
-125
417,8
5
Targ
et ha
s not
been
achie
ved d
ue to
the
follow
ing: 1
. Dela
ys in
obtai
ning a
ppro
val fo
r ZN
T419
8/17T
quota
tion d
ocum
ent. 2
. Dela
ys
in su
bmiss
ion of
desig
n and
docu
ments
for
quota
tions
by co
nsult
ants.
3. D
elays
in
awar
ding o
f con
tracts
that
were
adve
rtised
in
Octob
er 20
19.
Numb
er of
kil
ometr
es of
gr
avel
road
re
-gra
velle
d2 3
301 4
1384
9,89
2 200
233,6
6-1
966,3
4
Targ
et ha
s not
been
met
due t
o the
follo
wing
: 1.V
ukuz
akhe
was
plan
ned t
o be u
sed t
o im
pleme
nt the
se pr
ojects
and a
fter t
he co
ntrac
t be
ing un
der r
eview
, ther
e wer
e dela
ys as
SC
M pr
oces
ses h
ad to
be re
starte
d. 2.
The
ch
allen
ge of
poor
perfo
rman
ce of
contr
actor
s sti
ll cau
se m
ajor d
elays
in ex
pend
iture
and
outpu
ts as
contr
actor
s fac
e cha
lleng
es w
ith
cash
-flow
to fin
ish of
f wor
k on s
ite
Numb
er of
sq
uare
mete
rs of
black
top
patch
ing
(inclu
ding
potho
le re
pairs
)
353 7
8081
9 659
1 925
150,9
575
0 000
785 9
72,16
35 97
2,16
Annu
al tar
get h
as be
en ex
ceed
ed, s
o with
the
delay
s in t
he re
hab a
nd re
seal
prog
ramm
e, thi
s has
had a
n effe
ct on
the c
ondit
ion of
the
netw
ork,
which
has c
ause
d ser
ious
deter
iorati
on of
the r
oad c
ondit
ion, w
hich
caus
ed m
ajor p
othole
s, an
d the
se ne
eded
to
be pa
tched
for s
afety
reas
ons.
Numb
er of
kil
ometr
es of
gr
avel
road
s bla
ded
76 51
877
938
65 41
1,60
90 00
036
153,8
4-5
3 846
,16
Targ
et ha
s not
been
met
due t
o the
follo
wing
: 1.V
ukuz
akhe
was
plan
ned t
o be u
sed t
o im
pleme
nt the
se pr
ojects
and a
fter t
he co
ntrac
t be
ing un
der r
eview
, ther
e wer
e dela
ys as
SC
M pr
oces
ses h
ad to
be re
starte
d. 2.
The
ch
allen
ge of
poor
perfo
rman
ce of
contr
actor
s sti
ll cau
se m
ajor d
elays
in ex
pend
iture
and
outpu
ts as
contr
actor
s fac
e cha
lleng
es w
ith
cash
-flow
to fin
ish of
f wor
k on s
ite.
PART B: PERFORMANCE INFORMATION
2019 - 2020 KZN TRANSPORT ANNUAL REPORT48
PRO
GR
AM
ME
3: T
RA
NSP
OR
T O
PER
ATIO
NS
Publ
ic T
rans
port
Ser
vice
s
Nu
mber
of
kilom
etres
su
bsidi
sed
41 59
9 563
41 49
8 121
41 36
0 571
41 62
0 660
41 09
3 069
-527
591,0
0
Norm
al op
erati
onal
pena
lties a
nd st
andin
g kil
omete
rs du
e to i
nclem
ent w
eathe
r fro
m tim
e to
time d
uring
the c
ourse
of th
e yea
r has
had
a neg
ative
impa
ct on
the t
otal. H
owev
er, th
e co
mplet
e pub
lic tr
ansp
ort s
hut d
own i
n the
last
week
in M
arch
2020
, due
to th
e Cov
id-19
, had
a h
uge i
mpac
t on t
he to
tal ki
lomete
rs op
erate
d.
Nu
mber
of tr
ips
subs
idise
d1 1
89 45
21 1
76 85
01 1
65 39
61 1
91 19
61 1
66 80
9-2
4 387
,00
Norm
al op
erati
onal
pena
lties a
nd st
andin
g trip
s due
to in
cleme
nt we
ather
from
time t
o tim
e dur
ing th
e cou
rse of
the y
ear h
as ha
d a n
egati
ve im
pact
on th
e tota
l, How
ever,
the
comp
lete p
ublic
tran
spor
t shu
t dow
n in t
he la
st we
ek in
Mar
ch 20
20, d
ue to
the C
ovid-
19, h
ad
a hug
e imp
act o
n the
total
trips
oper
ated.
Numb
er of
Pr
ovinc
ial
Regu
lating
En
tity (P
RE)
hear
ings
cond
ucted
501
441
475
460
1 004
544,0
0Ov
er ac
hieve
ment
due t
o fas
t trac
king o
f inc
oming
appli
catio
ns fr
om pu
blic t
rans
port
oper
ators
for al
l mod
es of
publi
c tra
nspo
rt.
Nu
mber
of
route
s su
bsidi
sed
1 709
2 074
2 074
2 074
2 074
0,00
Targ
et ac
hieve
d
Su
bsidy
per
pass
enge
r17
,4718
,2219
,7922
,9021
,00-1
,90
The e
scala
tion f
actor
peak
ed at
1.39
2365
in
Septe
mber
2019
. The
n the
esca
lation
facto
r gr
adua
lly de
creas
ed to
1.34
0799
in M
arch
20
20. T
his re
sulte
d in l
ess s
ubsid
y and
henc
e les
s sub
sidy p
er pa
ssen
ger.
PART B: PERFORMANCE INFORMATION
2019 - 2020KZN TRANSPORT ANNUAL REPORT 49
Tra
nspo
rt S
afet
y an
d C
ompl
ianc
e
Numb
er of
ro
ad sa
fety
awar
enes
s pr
ogra
mmes
co
nduc
ted
99
66
60,0
0
Numb
er
of sc
hools
inv
olved
in
road
safet
y ed
ucati
on
prog
ramm
es
1 110
1 176
1 252
1 246
1 259
13,00
Par
tnere
d with
the D
epar
tmen
t of E
duca
tion
and H
ealth
to pr
omote
road
safet
y as p
art o
f the
ir sch
ool a
nd he
alth s
afety
initia
tives
Numb
er of
cro
ssing
pa
trols
prov
ided
143
191
185
174
182
8,00
A va
rianc
e in t
he ac
tual o
utput
is re
cord
ed du
e to
addit
ional
sites
that
were
activ
ated f
ollow
ing
nume
rous
publi
c pro
tests
at sc
hools
whe
re
comm
unitie
s dem
onstr
ated t
heir c
once
rns
rega
rding
the s
afety
of lea
rner
s.
Numb
er of
de
centr
alise
d PR
E offi
ces
estab
lishe
d1
10
00
0,00
Numb
er of
pu
blic t
rans
port
route
s tha
t ha
ve be
en
evalu
ated
for ec
onom
ic via
bility
443
793
1 091
00
0,00
PART B: PERFORMANCE INFORMATION
2019 - 2020 KZN TRANSPORT ANNUAL REPORT50
PRO
GR
AM
ME
4: T
RA
NSP
OR
T R
EGU
LATI
ON
Tr
ansp
ort A
dmin
istr
atio
n an
d Li
cens
ing
Numb
er
of lic
ense
co
mplia
nce
inspe
ction
s co
nduc
ted
1 393
1 110
1 230
1 335
1 342
7,00
The s
ituati
on on
the g
roun
d nec
essit
ated
for a
rand
om un
-exp
ected
insp
ectio
ns
mainl
y in D
LTC’
s whe
re in
equit
ies ha
d be
en sp
otted
inclu
ding a
cultu
re of
extra
or
dinar
y rela
tions
hips w
ith dr
iving
scho
ols
and i
nstru
ctors
and w
hich i
s the
stim
ulus o
f irr
egula
rities
. The
othe
r rea
son i
s the
numb
er
of fol
low up
insp
ectio
ns. A
bove
that
the
violat
ions o
f mini
mum
requ
ireme
nt in
terms
of
the le
gislat
ion to
cond
uct 2
insp
ectio
ns pe
r qu
arter
culm
inates
from
furth
er in
vesti
gatio
ns
and a
udits
in D
LTC’
s.
Tra
ffic
law
enf
orce
men
t
Nu
mber
of
spee
d op
erati
ons
cond
ucted
17 35
912
573
16 00
318
250
16 89
2-1
358,0
0
1. Du
ring t
he ye
ar 20
19/20
the D
irecto
rate
unde
r ach
ieved
by 13
58 du
e to h
eavy
rainf
alls
and l
imite
d man
powe
r bec
ause
of le
ave t
aken
, att
endin
g to c
rash
es an
d obs
tructi
ons a
s well
as
road
clos
ures
due t
o pub
lic pr
otest
actio
ns.
2.
The n
umbe
r of c
rash
es at
tende
d to
for th
e yea
r was
2868
with
1700
8 ma
nhou
rs los
t, 290
0 obs
tructi
ons w
ith
1727
3 man
hour
s los
t and
1293
abno
rmal
loads
esco
rted w
ith 92
63 m
anho
urs l
ost.
3. In
the la
ter pa
rt of
March
due t
o the
coun
try
wide
lock
down
the r
esou
rces w
ere r
e-dir
ected
to
supp
ort S
APS
durin
g the
road
block
s.
Nu
mber
of
vehic
les
weigh
ed18
0 758
160 2
3015
9 409
155 0
0014
7 163
-7 83
7,00
1. Fo
r the
year
2019
/20 th
e Dire
ctora
te un
der a
chiev
ed by
7837
due d
own
time a
t the w
eighb
ridge
s and
weig
hing
oper
ation
s dec
reas
ed E
aster
, Fes
tive
and O
ctobe
r Tra
nspo
rt Mo
nth pe
riod.
2. Du
ring t
his fin
ancia
l yea
r the
re w
as
a cha
nge i
n ope
ratin
g sys
tem fr
om
Trafm
an to
Winu
wei w
hich r
esult
ed in
3 w
eeks
of in
stalla
tion a
nd tr
aining
.
3.
In the
later
part
of Ma
rch du
e to t
he co
untry
wi
de lo
ckdo
wn th
e res
ource
s wer
e re-
direc
ted
to su
ppor
t SAP
S du
ring t
he ro
adblo
cks.
PART B: PERFORMANCE INFORMATION
2019 - 2020KZN TRANSPORT ANNUAL REPORT 51
Nu
mber
of
drun
ken d
riving
op
erati
ons
cond
ucted
399
485
520
220
679
459,0
0
1. Du
ring t
he ye
ar 20
19/20
the D
irecto
rate
over
ac
hieve
d by 4
59 du
e to i
ntens
ified e
nforce
ment
due t
o Safe
r Frid
ays a
nd C
losing
rank
s.
2.
The o
ver a
chiev
emen
t was
also
du
e to t
he op
erati
ons d
one d
uring
the
relau
nchin
g of th
e EBA
T at
the P
mb O
ffice.
3.
In the
later
part
of Ma
rch du
e to t
he co
untry
wi
de lo
ckdo
wn th
e res
ource
s wer
e re-
direc
ted
to su
ppor
t SAP
S du
ring t
he ro
adblo
cks.
Nu
mber
of
vehic
les
stopp
ed an
d ch
ecke
d1 2
64 67
489
3 239
1 100
274
1 600
000
1 277
380
-322
620,0
0
1. Fo
r the
year
2019
/20 th
e Dire
ctora
te un
der a
chiev
ed by
322 6
20. H
istor
ically
the
Dire
ctora
te ha
s not
achie
ved t
his ta
rget
due
to offi
cers
spen
ding a
vast
amou
nt of
time o
n va
rious
othe
r fun
ction
s suc
h as d
riving
and
learn
er’s
licen
ce te
sting
, esc
ortin
g of a
bnor
mal
loads
, atte
nding
to pu
blic p
rotes
t acti
ons,
accid
ents
and i
ncide
nts. T
he D
irecto
rate
has m
ade a
requ
est fo
r this
targ
et to
be
revie
wed b
ased
on hi
storic
al ac
hieve
ments
.
2.
The n
umbe
r of c
rash
es at
tende
d to
for th
e yea
r was
2868
with
1700
8 ma
nhou
rs los
t, 290
0 obs
tructi
ons w
ith
1727
3 man
hour
s los
t and
1293
abno
rmal
loads
esco
rted w
ith 92
63 m
anho
urs l
ost.
3. In
the la
ter pa
rt of
March
due t
o the
coun
try
wide
lock
down
the r
esou
rces w
ere r
e-dir
ected
to
supp
ort S
APS
durin
g the
road
block
s.
Nu
mber
of la
w en
force
ment
office
rs em
ploye
d79
978
377
076
884
072
,00
The D
irecto
rate
is in
a pro
cess
of
filling
the v
acan
t pos
ts:
1. Sh
ortlis
ting d
one o
n CPI
Pos
ts an
d co
mpete
ncy d
one o
n the
19th
of Ma
rch
2020
and a
waitin
g inte
rview
dates
whe
n the
natio
nwide
lock
down
has b
een l
ifted.
2. Pa
nel a
ppro
val re
ceive
d for
PPI
Pots
and
await
ing th
e sitti
ng of
the s
hortli
sting
pane
l wh
en th
e nati
onwi
de lo
ckdo
wn ha
s bee
n lifte
d.
3. Sh
ortlis
ting a
nd co
mpete
ncy t
est d
one f
or
SPI P
osts
and i
ntervi
ews w
ill be
done
whe
n the
natio
nwide
lock
down
has b
een l
ifted.
4. Aw
aiting
shor
tlistin
g sitti
ng fo
r PI P
osts
when
the
natio
nwide
lock
down
has b
een l
ifted.
PART B: PERFORMANCE INFORMATION
2019 - 2020 KZN TRANSPORT ANNUAL REPORT52
Unde
rtake
go
al dir
ected
en
force
ment
of pu
blic t
rans
port
(Ope
ratio
n Sh
anela
)
881
1 311
1 224
880
907
27,00
The s
timuli
and r
easo
ns th
at ga
ve bi
rth to
co
nditio
ns an
d circ
umsta
nces
of th
e PTE
U co
mpon
ent o
ver a
chiev
emen
t are
main
ly am
ongs
t othe
rs un
-pre
viewe
d circ
umsta
nces
inc
luding
chan
ging c
ondit
ions o
n the
grou
nd
from
time t
o tim
e, ma
inly i
n res
pect
and i
n re
lation
to th
e ong
oing p
ublic
tran
spor
t unr
est
or ta
xi vio
lence
whic
h is p
ersis
tently
and
cons
isten
tly en
gulfe
d our
Pro
vince
durin
g the
en
tire 20
19/20
20 fin
ancia
l yea
r. The
refor
e, the
situa
tion o
n the
grou
nd ne
cess
itated
for
simu
ltane
ous t
actic
al de
ploym
ent o
f our
va
rious
resp
ectiv
e sec
tions
to co
ver t
he en
tire
KZN
Prov
ince a
s the
situa
tion d
eterm
ines o
n the
grou
nd.
PRO
GR
AM
ME
5: C
OM
MU
NIT
Y-B
ASE
D P
RO
GR
AM
ME
EPW
P C
oord
inat
ion
and
Mon
itorin
g
Nu
mber
of jo
bs
create
d63
626
49 50
144
008
58 26
047
305
-10 9
55,00
The
reas
on fo
r not
meeti
ng th
e ann
ual W
ork
Oppo
rtunit
y tar
get is
due t
o the
delay
in
repo
rting o
f Tra
ining
for N
YS an
d PW
Ds w
hich
took p
lace i
n Feb
ruar
y and
Mar
ch 20
20
Nu
mber
of
emplo
ymen
t da
ys cr
eated
4 977
811
4 357
306
3 411
949
4 370
000
4 238
828
-131
172,0
0 T
he re
ason
for n
ot me
eting
the a
nnua
l Per
son
days
targ
et is
due t
o the
delay
in re
portin
g of
Train
ing fo
r NYS
and P
WDs
whic
h too
k plac
e in
Febr
uary
and M
arch
2020
Numb
er of
Fu
ll-Tim
e Eq
uivale
nts
(FTE
’s)21
630
18 94
414
835
19 00
018
430
-570
,00 T
he re
ason
for n
ot me
eting
the a
nnua
l FTE
s tar
get is
due t
o the
delay
in re
portin
g of
Train
ing fo
r NYS
and P
WDs
whic
h too
k plac
e in
Febr
uary
and M
arch
2020
Nu
mber
of
youth
(18-
35)
emplo
yed
17 59
49 5
057 1
159 0
009 6
1161
1,00
The
targ
et for
Youth
was
met.
The
im
pleme
ntatio
n of V
RRM
saw
an im
prov
emen
t in
the ac
hieve
ment
of the
Youth
targ
et
Nu
mber
of
wome
n em
ploye
d46
552
42 38
138
616
42 00
041
119
-881
,00 T
he re
ason
for n
ot me
eting
the a
nnua
l targ
et for
Wom
en is
due t
o the
delay
in re
portin
g of
Train
ing fo
r NYS
and P
WDs
whic
h too
k plac
e in
Febr
uary
and M
arch
2020
Numb
er of
Pe
rsons
With
Di
sabil
ities
emplo
yed
3514
610
111
064
-46,0
0 T
he re
ason
for n
ot me
eting
the a
nnua
l PW
Ds
targe
t is du
e to t
he de
lay in
repo
rting o
f Tr
aining
for N
YS an
d PW
Ds w
hich t
ook p
lace
in Fe
brua
ry an
d Mar
ch 20
20
PART B: PERFORMANCE INFORMATION
2019 - 2020KZN TRANSPORT ANNUAL REPORT 53
Com
mun
ity D
evel
opm
ent
Numb
er of
Zib
ambe
le co
ntrac
tors
emplo
yed
44 00
242
714
42 45
143
000
40 52
0-2
480,0
0 T
he ta
rget
for Z
ibamb
ele C
ontra
ctors
was n
ot me
t bec
ause
ther
e was
a de
lay in
Reg
ions
to en
sure
repla
ceme
nts w
ere r
epor
ted an
d su
bmitte
d to t
he re
portin
g offic
e on t
ime
Small
co
ntrac
tors
traine
d thr
ough
the
Vuk
uzak
he
Emer
ging
Contr
actor
De
velop
ment
Prog
ramm
e
397
529
1 297
500
441
-59,0
0
This
targe
t was
not a
chiev
ed du
e to t
he
Depa
rtmen
t hav
ing to
put th
e Vuk
uzak
he po
licy
on ho
ld pe
nding
its re
view.
This
resu
lted i
n the
re
ducti
on of
proje
cts th
at we
re im
pleme
nted
throu
gh th
e Vuk
uzak
he P
olicy
.
Numb
er
of tra
ining
op
portu
nities
cre
ated f
or
wome
n
122
456
599
250
1 290
1 040
,00
This
targe
t has
been
exce
eded
, as p
art
of im
pleme
nting
IGUL
A ra
dical
econ
omic
trans
forma
tion.
The D
epar
tmen
t is pr
ioritis
ing
skills
deve
lopme
nt of
desig
nated
grou
ps in
pa
rticula
rly w
omen
, you
th an
d peo
ple w
ith
disab
ilities
. The
refor
e mor
e effo
rt ha
s bee
n put
acro
ss in
vario
us D
epar
tmen
tal pr
ogra
mmes
to
be m
ore i
nclus
ive of
desig
nated
grou
ps. T
his
has r
esult
ed in
mor
e pro
gram
mes c
hang
ing
their t
arge
ting s
trateg
ies to
resp
ond i
n IGU
LA
by fo
cusin
g lar
gely
on w
omen
, you
th an
d pe
ople
with
disab
ilities
.
Numb
er
of tra
ining
op
portu
nities
cre
ated f
or
youth
193
546
556
250
1 392
1 142
,00
This
targe
t has
been
exce
eded
, as p
art
of im
pleme
nting
IGUL
A ra
dical
econ
omic
trans
forma
tion.
The D
epar
tmen
t is pr
ioritis
ing
skills
deve
lopme
nt of
desig
nated
grou
ps in
pa
rticula
rly w
omen
, you
th an
d peo
ple w
ith
disab
ilities
. The
refor
e mor
e effo
rt ha
s bee
n put
acro
ss in
vario
us D
epar
tmen
tal pr
ogra
mmes
to
be m
ore i
nclus
ive of
desig
nated
grou
ps. T
his
has r
esult
ed in
mor
e pro
gram
mes c
hang
ing
their t
arge
ting s
trateg
ies to
resp
ond i
n IGU
LA
by fo
cusin
g lar
gely
on w
omen
, you
th an
d pe
ople
with
disab
ilities
.
PART B: PERFORMANCE INFORMATION
2019 - 2020 KZN TRANSPORT ANNUAL REPORT54
Numb
er
of tra
ining
op
portu
nities
cre
ated f
or
peop
le wi
th dis
abilit
ies
02
48
409
401
This
targe
t has
been
exce
eded
, as p
art
of im
pleme
nting
IGUL
A ra
dical
econ
omic
trans
forma
tion.
The D
epar
tmen
t is pr
ioritis
ing
skills
deve
lopme
nt of
desig
nated
grou
ps in
pa
rticula
rly w
omen
, you
th an
d peo
ple w
ith
disab
ilities
. The
refor
e mor
e effo
rt ha
s bee
n put
acro
ss in
vario
us D
epar
tmen
tal pr
ogra
mmes
to
be m
ore i
nclus
ive of
desig
nated
grou
ps. T
his
has r
esult
ed in
mor
e pro
gram
mes c
hang
ing
their t
arge
ting s
trateg
ies to
resp
ond i
n IGU
LA
by fo
cusin
g lar
gely
on w
omen
, you
th an
d pe
ople
with
disab
ilities
.
PART B: PERFORMANCE INFORMATION
2019 - 2020KZN TRANSPORT ANNUAL REPORT 57
RISK MANAGEMENT
In setting up the risk appetite, management adopted the ISO31000 guide to use the consequence table. The Department developed the consequence table using the rating of 20% to 100% where:
• 20% is Insignificant;
• 40% is Minor;
• 60% is moderate;
• 80% is Major; and
• 100% is critical
To accomplish the set Risk Appetite statement, the Departmental Risk Management unit communicated the Risk Appetite through risk assessment workshops. The process of risk assessment aided the development of the Departmental Risk Profile for the financial year 2019/20. The Risk Profile encompassed of 81 risks with a total of 175 mitigation plans identified to manage such risks.
The Risk Management Directorate monitored the Risk Profile on regular basis and produced reports for the department’s Risk Management Committee, and the Cluster Audit and Risk (CARC) Committee on a quarterly basis. To date there are 44 risk that were managed within the appetite level and 30 in the tolerance level. The table below depicts the whole risk profile into the various levels of risks and provides a high-level statistical view of how the department made progress in terms of implementing risk mitigation plans.
PART C: GOVERNANCE
2019 - 2020 KZN TRANSPORT ANNUAL REPORT58
No. Risk Magnitude
Period/ QTR No. of Identified Risks
No. of Agreed Action Plans
No. of Completed Action Plans
No. of Outstanding Action Plans
No. Risk Magnitude
Period/ QTR No. of Identified Risks
No. of Agreed Action Plans
No. of Completed Action Plans
No. of Outstanding Action Plans
1. Critical Quarter 1 5 17 5 12Quarter 2 04 11 0 11Quarter 3 02 07 01 06Quarter 4 02 07 01 06
2. Major Quarter 1 7 19 6 13
Quarter 2 12 29 10 19Quarter 3 07 18 06 12
Quarter 4 05 13 6 73. Moderate Quarter 1 26 50 15 35
Quarter 2 28 57 14 43Quarter 3 31 68 25 43Quarter 4 30 63 25 38
4. Minor Quarter 1 25 36 23 13Quarter 2 23 53 32 21Quarter 3 22 48 28 20Quarter 4 20 46 30 16
5. Insignificant Quarter 1 14 21 13 8Quarter 2 14 25 11 14Quarter 3 19 32 24 8Quarter 4 24 47 31 16
Quarter 1 77 143 62 81Quarter 2 81 175 67 108Quarter 3 81 173 84 89Quarter 4 81 176 93 83
PART C: GOVERNANCE
2019 - 2020KZN TRANSPORT ANNUAL REPORT 59
Management had identified risks in 10 categories. The table below replicates how the 28 risks ware management to the tolerable level and the 44 to the risk appetite level per risk category during the financial year 2019/2020.
Analysis
Stra
tegi
c Ri
sk
Ope
ratio
nal R
isks
Info
rmati
on T
echn
olog
y Ri
sks
Fina
ncia
l Man
agem
ent R
isks
Occ
upati
onal
Hea
lth a
nd
Safe
ty
Disa
ster
Man
agem
ent r
isks
Proj
ect R
isks
Frau
d an
d Co
rrup
tion
Ethi
cs R
isks
Com
plia
nce
Risk
s
Tota
l
Total Risk Identified 6 19 06 03 2 06 16 7 9 7 81Risk remaining outside the Appetite and Tolerance levels
6 0 1 1 0 0 0 1 0 0 9
Risk Management to/within Tolerances level
0 7 2 1 01 3 7 0 2 5 28
Risk Management to/within Appetite.
0 12 3 01 01 3 9 6 7 2 44
FRAUD PREVENTION AND ANTI-CORRUPTION The execution of the Fraud Prevention Plans was continued, including awareness workshops on fraud and corruption to promote good ethics in the department. The Departmental Ethic Committee was established, and members of this committee were formally appointed by the Head of the Department. Trainig of the Ethics committee held on 13 March 2020. Training covered e-disclosure, code of conduct and roles and responsibilities of the Ethics Committee.
The culture of zero tolerance to fraud and corruption was maintained. Consequently, the department has ensured that all cases emerging from the application of the Whistle Blowing Policy are being investigated. The department has continued to engage with the Forensic Investigation Unit within the Provincial Internal Audit Services well and the Public Service Commission.
There were 22 cases referred for forensic investigations, 10 were completed and 12 are still in progress. 3 cases have been referred for a criminal investigation. The total number of 12 cases which are not finalized during the 2019/20 financial year will be completed during 2020/21 financial year.
The internal Labour Relations unit is currently implementing the recommendations made from these forensic reports. To date 1 official has been dismissed and the process of recovering monies is being initiated.
PART C: GOVERNANCE
2019 - 2020 KZN TRANSPORT ANNUAL REPORT60
PART C: GOVERNANCE
2.5.7 FINANCE PORTFOLIO COMMITTEEFinance Portfolio Committee Meetings were held on the following dates:
Resolu-tion No.
Subject Details Response by the Department
28/2019 TRANSVERSAL: LATE ISSUING OF ORDERS
Noting that:
a) Most departments that registered larger under-expenditure blamed late receipt of invoices as one of the reasons for underspending their budgets.
b) The late issuing of invoices by service providers is linked to the Department’s late issuing of orders with some departments issuing orders three months before the end of the financial year.
c) This is indicative of poor prior planning and non-adherence to departments’ own Annual Performance Plans.
The Committee resolves that:
1. Accounting Officers must ensure their departments do proper prior planning, with timelines, and issue orders timeously in order to avoid underspending due to receiving invoices late.
2. Accounting Officers must ensure that service providers are paid within 30 days of issuing invoices to the departments in line with the PFMA and Treasury Regulations.
1. The department issued a circular on settlement of payments within 30 days detailing measures to be undertaken to ensure compliance with Treasury Regulation 8.2.3.
2. Responsibility Managers were instructed to ensure that reasons for the delay in the payment of invoices within 30 days are documented on the payment voucher together with the relevant documentation to support reasons provided.
3. The department issued a circular on non-compliance with payment of invoices within 30 days.
4. Financial Services at Head Office circulates a list of all invoices that were not paid within 30 days and Responsibility Managers are required to complete an exception report detailing all invoices that were not paid within 30 days together with reasons for not making payments timeously.
5. Responsibility Managers were also instructed to implement consequence management processes to ensure that individuals are held accountable for invoices that are paid late without valid reasons.
6. The issue of non-payment of invoices within 30 days was also discussed during the Audit Improvement Workshops held for all four Regional Offices and Head Office.
7. A report of invoices not paid within 30 days detailing the number and values of Invoices not paid per Responsibility is also tabled at Monthly Management Meetings.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 61
PART C: GOVERNANCE
Subject Details Response by the Department
29/2019 TRANSVERSAL: TRANSFERS TO ENTITIES, MUNICIPALITIES AND OTHER BENEFICIARIES
Noting that:
a) There was a notable increase in the transfer of funds to entities, municipalities and other beneficiaries by Departments on the last month of the financial year.
b) Reasons for the late transfer of funds include non-signing of Service Level Agreements between departments and beneficiaries until the last minute.
c) This is indicative of poor prior planning and non-adherence to departments’ own Annual Performance Plans.
The Committee resolves that:
Accounting Officers must ensure that departments conclude Service Level Agreements with entities, municipalities and other beneficiaries preferably within the first quarter of the financial year in order to effect transfers timeously.
The department hereby notes the
resolution by the Finance Portfolio Committee
30/2019 TRANSVERSAL: CONDITIONAL GRANT EXPENDITURE
Noting that:
While there has been marked improvement in the expenditure of conditional grants by departments generally in the last financial year 2018/19, there were some departments that regressed by failing to spend in full their EPWP as well as IASP grants.
In the 2019/2020 financial year, R 71,6million has been allocated to the KZN Department of Transport. R 50, 173million has been transferred to KZN DOT by NDPW as at August 2019.
To date R 34,671million has been spent from the EPWP Integrated Grant which equates to 48% of the total allocation and 69% of the transferred allocation.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT62
PART C: GOVERNANCE
Resolution No.
Subject Details Response by the Department
30/2019
(cont…)
The Committee resolves that:
1. Accounting Officers must ensure full expenditure of all conditional grants and account for these correctly.
2. Accounting Officers are urged to ensure that their departments plan for conditional grants well in advance in order to ensure they are spent in full or fully committed by year end.
The Department intends to improve its expenditure in January 2019 as it plans to conduct Medical Examinations to the Vukayibambe Routine Road Maintenance Programme which is funded through the grant. Also, expenditure on L1578 will improve as more than 85 participants have been employed into the projects and the NYS Training has commenced.
The EPWP Integrated Grant Project List for 2019/2020 financial year has been amended by removing D954, L1633, Training and NYS. The funds have been re-allocated to the Vukayibambe Routine Road Maintenance Programme; this is due to non – commencement of the initially planned Programmes due to delays in the procurement of Service Providers.
The Table below indicated the list and progress of Programmes funded through the Integrated Grant;
Project Name
Re-gion
Planned WO
WO Re-ported on ERS
IG - Al-located Budget 2019/2020
Expenditure to date
Overall Construc-tion Prog-ress (%)
Comments
Construction of L1578 using LIC methods
DBN 400 45 9,000,000 7,279, 486.72 40% A rollover of R2.4 million is allocated to L1578
Routine Road Maintenance on Provincial Roads-EMP
EMP 150 793 15,650,000 9,358,397.77 60% In progress and in the process of procuring medical examinations as required by the OHS Act.
Routine Road Maintenance on Provincial Roads – LDY
LDY 150 919 15,650,000 5,175,303.85 50%
Routine Road Maintenance on Provincial Roads -DUR
DBN 75 37 400,000 276, 550 60%
Routine Road Maintenance on Provincial Roads - eThekwini
DBN 800 850 15,250,000 6,419,777.26 50%
Routine road Maintenance on Provincial roads - PMB
PMB 800 541 15,650,000 5,515,612.54 50%
2019 - 2020KZN TRANSPORT ANNUAL REPORT 63
PART C: GOVERNANCE
Resolution No.
Subject Details Response by the Department
31/2019
TRANSVERSAL: UN-DERSPENDING ON COMPENSATION OF EMPLOYEES
Noting that:
a) Many departments in the last financial year 2018/19 underspent their budgets under Compensation of employees.
b) One of the reasons given for underspending is that there are lengthy recruitment processes that lead to delays in filling of funded vacant posts, and this leads to underspending on Compensation of employees.
c) Some departments deliberately park money under Compensation of employees and then do virements to use that money to defray expenditure pressures elsewhere in their budgets.
The Committee resolves that:
1. Accounting officers must provide a list of funded vacant posts that are a priority in their departments together with a plan that has timelines indicating how the recruitment processes to fill in vacant posts will be expedited.
1. The Department received authority to fill 1021 posts from the Premier. As at the beginning of November 2019, the Department has 742 out of the 1021 posts still to fill. A list of the 742 vacant priority posts is attached.
8 of the abovementioned 742 posts cannot be advertised and filled at present as they require re-evaluation / review of the functions. It is therefore not possible to forecast when such posts will be filled as it is dependent on other processes to be finalised first.
Of the 734 remaining posts, the plan for filling such is as follows:
NO. OF POSTS PLANNED DATE FOR FILLING
156 (already advertised) 30 June 2020
289 (to be advertised by 31 July 2020)
31 December 2020
289 (to be advertised by 31 January 2021)
30 June 2021
2. The department hereby notes the resolution by the Finance Portfolio Committee. The Department of Transport budgeted for the full proposed organisational structure to ensure that it can fill all the posts as soon as the structure has been approved by DPSA. Unfortunately, there has been a delay in the approval of the structure and this has resulted in the department not being able to fill posts as envisaged thus underspending.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT64
PART C: GOVERNANCE
Resolution No.
Subject Details Response by the Department
31/2019
(cont…)
2. Accounting Officers are urged to refrain from the practice of parking funds under Compensation of employees and then do virements so they can use these funds elsewhere in their budgets.
32/2019 TRANSVERSAL: CONTINUOUS TRANSGRESSION AND FLOUTING OF THE PFMA AND TREASURY REGULA-TIONS
Noting that:
a) The PFMA Section 30(2)(f) and Section 43 allow departments to process virements not exceeding 8% of the appropriated amount in a particular programme. The PFMA requires departments to approval from Treasury prior to processing virements over and above 8% threshold.
b) Some departments continue to transgress the PFMA and Treasury Regulations by continuously processing excessive virements without obtaining prior approval from Treasury.
The Committee resolves that:
1. Accounting Officers must ensure that where the PFMA and Treasury Regulations are flouted, there must be consequence management against the implicated officials, in accordance with the PFMA and any other enabling legislation.
1. The department hereby notes the resolution by the Finance Portfolio Committee.
2. The Department of Transport has sought approval from Treasury prior to processing virements over and above the 8% threshold.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 65
PART C: GOVERNANCE
Resolution No.
Subject Details Response by the Department
32/2019
(cont…)
2. Failure to implement consequence management may result in the Auditor-General invoking the Public Audit Amendment Act 5 of 2018 which empowers the Auditor-General to take further action, including remedial action where losses are suffered by the State, and where possible, to recover those losses and refer certain material irregularities for investigation.
33/2019 TRANSFER: GENERAL UNDERSPENDING BY ENTITIES
Noting that:
a) Some entities registered significant underspending of their budgets in the 2018/19 financial year.
b) Reasons for underspending include uncertainty that is created by the ongoing rationalisation of entities, high staff turnover and non-filling of vacant funded posts.
The Committee resolves that:
1. Provincial Treasury must provide a report on the progress on the rationalisation of entities process in the province showing a list of the affected entities.
The department hereby notes the resolution by the Finance Portfolio Committee.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT66
Resolution No. Subject Details Response by the Department
33/2019
(cont…)
2. Accounting Authorities of all entities are urged to ensure that their budgets are spent in full and accounted for properly at year-end.
3. Accounting Authorities of all entities must ensure that all funded vacant posts are filled so as to avoid underspending on Compensation of employees as well as increase efficiency in these entities.
34/2019 TRANSVERSAL: EXPENDITURE OF ALL SPECIFICALLY AND EXCLUSIVELY APPROPRIATED FUNDS
Noting that:
(a) Some departments are failing to spend their specifically and exclusively appropriated funding.
(b) Some departments continue to utilise their specifically and exclusively appropriated funding to address pressures elsewhere in their budget and thus contravene Treasury Regulations, the PFMA and the KwaZulu-Natal Appropriation Bill.
The Committee resolves that:
1. Accounting Officers must ensure that specifically and exclusively appropriated funds are spent in full.
1. The department hereby notes the resolution by the Finance Portfolio Committee.
2. The Department of Transport’s specifically and exclusively appropriated funding relates to Learner Transport Services and these funds were fully spent in the 2018/19 financial year.
PART C: GOVERNANCE
2019 - 2020KZN TRANSPORT ANNUAL REPORT 67
Resolution No. Subject Details Response by the Department
34/2019
(cont…)
2. Where repurposing of these funds (specifically and exclusively appropriated) is required, the applicable authorisation procedures must be followed.
35/2019 TRANSVERSAL: MONTHLY CASH-FLOW ANALYSIS TO BE GIVEN TO PORTFOLIO COMMITTEE
Noting that:
(a) Departments are currently not providing monthly cash-flow analysis to their respective portfolio committees for monitoring.
(b) Monthly cash-flow analysis provide better insight and early indication of the department’s midyear and year-end projected expenditure.
The Committee resolves that:
Accounting Officers and Accounting Authorities must provide monthly cash-flow analysis to their respective portfolio committees for monitoring of expenditure in 2019/20.
1. The department hereby notes the resolution by the Finance Portfolio Committee.
2. The Department of Transport has only been required to provide quarterly reports to the Transport Portfolio Committee.
69/2019 TRANSPORT: NON-FILLING OF VACANT POSTS
Noting that:
a) The Department is slow in filling vacant posts.
b) The Department is proposing to amend its organisational structure.
.
The Department received comments regarding the consulted proposed organisational structure from the MPSA. The Department did not agree with some of the comments / issues that were raised by the Minister. Request were made by the Department to meeting with the officials from the Department of Public Service and Administration (DPSA) with a view to discuss the comments. Unfortunately, the request was turned down by the DPSA through a letter dated 12/11/2019.
The Department will engage with stakeholders and re-submit the amended organisational structure to the DPSA
PART C: GOVERNANCE
2019 - 2020 KZN TRANSPORT ANNUAL REPORT68
Resolution No. Subject Details Response by the Department
69/2019
(cont…)
The Committee resolves that:
The Accounting Officer must provide a report to the Committee by 15 February 2020 on the following:
1. a progress report on the proposed organisational structure.
2. a report on getting DPSA approval for the revised organisational structure
70/2019 TRANSPORT: ROADS DAMAGED BY STORM
Noting that:
a) The Department incurred additional budgetary pressure of R199.888 million because of the 111 roads that were damaged by storms.
b) The Department did not notify Provincial Treasury about this damage and costs associated with it.
The Committee resolves that:
The Accounting Officer must provide a report to the Committee by 15 February 2020 on the following:
1. Why did the Department not notify Provincial Treasury about the storm damage on the roads and costs associated with it?
2. progress on the steps that the PDMC in CoGTA has taken regarding the damage caused by the storm on these roads.
A detailed report was prepared, signed and sent to Provincial Disaster Management Centre on the 21st of June 2019, and Treasury was aware of the storm damage, but felt that since the letter was submitted to COGTA, it was enough.
There has been no feedback to date, however the Department shifted internal funds of R100 million to take care of the affected roads while waiting for PDMC. The Department will continue to follow up with the PDMC.
PART C: GOVERNANCE
2019 - 2020KZN TRANSPORT ANNUAL REPORT 69
Resolution No. Subject Details Response by the Department
71/2019 TRANSPORT: CROSS-BORDER CRIME FIGHTING STRUCTURE
Noting that:
a) Funds relating to the cross-border crime fighting structure are suspended until further notice.
b) The Department indicated that they were in the process of submitting a document to Cabinet for them to consider removing the condition that states that R50 million allocated for the project should be reimbursed back to the province from national Department of Public Works.
The Committee resolves that:
The Accounting Officer must provide a report to the Committee by 15 February 2020 on the following:
1. Progress regarding the cross-border crime fighting structure.
2. Progress on the submission of the document to Cabinet and whether Cabinet has considered the document and given a response to the Department.
On the 18th of June 2019 the Contractor did a trial mix in order to determine the appropriate striking time for the panels. The concrete mix design is has been approved. Panels have been casted and are awaiting transportation to site. In the effort to use local plant as much as possible and still maintain the acceptable level of quality and compliance, the plant needed to transport the panels is being checked by the main contractor before any appointment is made.
The main challenge is getting the Memorandum of Understanding (MoU) between KZN Department of Transport and National Department of Public Works signed and a need for addition funding as the approved tender value is R85 796 470.06 which is R35,8 million more than the allocated budget of R50 million. A meeting is scheduled for Tuesday the 18th of February 2020.
The Cabinet Memo for the release of budget allocation for construction of new jersey barriers to deal with cross border crime in Manguzi, Umkhanyakude district was compiled, signed off by the then Acting Head: Transport Ms S.M Ngubo and submitted to cabinet in November 2019 for consideration by the Cabinet
PART C: GOVERNANCE
2019 - 2020 KZN TRANSPORT ANNUAL REPORT70
PART C: GOVERNANCE
Resolution No. Subject Details Response by the Department
72/2019 TRANSPORT: ROAD SAFE-TY IMPROVEMENT
Noting that:
a) The Department received R40 million from RTMC in 2014/15 for Road Safety Improvement Programme.
b) To date, only R27.677 million of those funds has been spent.
c) The balance of R12.323 million has been rolled over to 2019/20.
The Committee resolves that:
The Accounting Officer must provide a report to the Committee by 15 February 2020 on the following:
1. Explain the delays in spending the full R40 million allocated for Road Safety Improvement Programme.
2. Indicate whether the balance of R12.323 million will be spent in full on Road Safety Improvement Programme by year-end.
The RTMC funding will be utilised to implement service delivery projects within RTI as well as Road Safety Directorate.
The current unspent funds available in terms of the BAS reports amounts to R15 636 730, 53.
The summary of interventions and costs are as follows:
Balance as per BAS report
R15 636 730,53
RTI Interventions
R12 000 000
5 Mobile Evidential Alcohol Breath Testing Units
R6 500 000
Upgrading of 5 Provincial Driving Licence Testing Centres
R5 500 000
Road Safety interventions
R3 619 430
Purchase of 2 x dedicated road safety vehicles
R1 008 170
Resource equipment, education tools
R3 619 430
Sub total R15 619 430
Surplus R17 300,53
76/2019 TRANSVERSAL: UNDER-SPENDING ON INFRA-STRUCTURE
Noting that:
a) One of the priorities of government in the current administration is to utilise infrastructure development to re-ignite the economy of the province.
The Accounting Officer appointed a turn around strategy committee in October 2019 to address the issues of under expenditure. A list of projects have been placed on the fast tracked projects list including projects that were terminated. The intention of this intervention strategy was to identify terminated projects that were close to completion, fast track the appointment of service providers to complete the works so as to assist with the expenditure and outputs. Regravelling and Blading contracts in different regions were also identified and fast tracked from the Head Office to catch up on expenditure and outputs.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 71
PART C: GOVERNANCE
Resolution No. Subject Details Response by the Department
76/2019
(cont…)
b) Most Departments have recorded underspending against their infrastructure budgets at midyear.
(c) Most Departments have indicated that the Department of Public Works is the one delaying the implementation of infrastructure projects, which then results in the slow expenditure of the Departments’ infrastructure budgets
The Committee resolves that:
1. Accounting Officers must prioritise expenditure of their infrastructure budgets in order to boost the economy and help create much needed job opportunities in the province.
2. Accounting Officers must engage the Department of Public Works regarding the pace of rolling out infrastructure projects as the implementing agent of choice in the province.
The Department of Public Works is urged to assist Departments by expediting infrastructure projects in the province.
Although there hasn’t been a final implementation plan of the resolution, the Department is currently finalising two MOA’s, first MOA is to implement Bailey Bridges which will assist with fast tracking the service delivery for river crossing as there is an increased number of school children that are missing school days when there are heavy rains and also drownings. Second MOA is for the cross-border crime fighting new jersey barriers, this will assist in fast tracking the implementation of the structure, further engagements with DPWI will take place as per the resolution
2019 - 2020 KZN TRANSPORT ANNUAL REPORT72
PART C: GOVERNANCE
Resolution No. Subject Details Response by the Department
77/2019 TRANSVERSAL: UNDERSPENDING AGAINST COMPENSATION OF EMPLOYEES
Noting that:
a) Some Departments recorded underspending against Compensation of employees at midyear.
b) Some Departments have a high number of vacant funded posts, which contributes to the underspending against Compensation of employees.
c) Some Departments have embarked on reviewing their organisational structures and therefore are not filling vacant funding posts.
The Committee resolves that:
1. Accounting Officers must expedite expenditure against Compensation of employees by filling vacant posts so as not to compromise service delivery.
2. Accounting Officers must expedite all organisational review processes that they have embarked on.
3. Accounting Officers must ensure that all internal recruitment processes are expedited and shortened in order to speed up the filling of vacant funded posts.
The Department was granted approval by the Premier to fill 1021 posts. It was later established that 35 of the posts were a duplication hence the Department only has to fill 986 posts.
As at the beginning of February 2020, the Department has filled 243 of the 986 posts leaving 743 posts still to be filled.
16 of the abovementioned 743 posts cannot be advertised and filled at present as they require re-evaluation / review of functions. It is therefore not possible to forecast when the 16 posts will be filled as it is dependent on other processes to be finalised first. This leaves 727 posts to be filled. The plan for the filling of the 727 posts is as follows:
PLANNED FINANCIAL YEAR FOR FILLING NO. OF POSTS
2019/2020 112020/2021 2042021/2022 2862022/2023 226
727
In an attempt to reduce and shorten recruitment processes, the Human Resource Practices has procured the services of a service provider to assist with the sifting and scheduling of the large volumes of applications received for advertised entry level positions. Approval has also been granted for employees in the Recruitment and Selection Section to work overtime to fast-track the sifting and scheduling of applications received. The quicker that the applications received for vacant advertised posts are submitted to responsibility managers, the quicker they will be able to embark on subsequent selection processes which will result in a faster turnaround time to fill the posts.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 73
PART C: GOVERNANCE
Resolution No. Subject Details Response by the Department
79/2019 TRANSVERSAL: UNDERSPENDING AGAINST CONDITIONAL GRANTS AND SPECIFICALLY AND EXCLUSIVELY APPROPRIATED FUNDS
Noting that:
Some Departments recorded underspending against conditional grants and specifically and exclusively appropriated funds at midyear.
The Committee resolves that:
1. Accounting Officers must ensure that they spend their Conditional grants allocations and specific and exclusive appropriations in full at year-end.
Failure to spend the conditional grants and specific and exclusive appropriations may result in reduced allocations in the future
a) The department notes the resolution of the Portfolio Committee for Finance.
b) The Department of Transport will attempt by all means to fully spend its conditional grant allocations by the end of the financial year.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT74
SCOPA RESOLUTIONSSCOPA Meetings were held on the following dates:
22 OCTOBER 20196 FEBRUARY 2020
Resolution No.
Subject Details Response by the Department
36/2019 DEPARTMENT OF TRANSPORT: IMMOVABLE TANGIBLE CAPITAL ASSETS
Noting that:
• The Auditor-General was unable to obtain sufficient appropriate audit evidence that immovable tangible capital assets had been properly accounted for due to the status of the accounting records relating to prior years.
• The Department in addition did not properly account for capital work in progress.
• The Auditor-General was accordingly unable to determine whether further adjustments were necessary to immovable tangible capital assets stated at R56.47 billion as well as capital work in progress stated at R7.24 billion.
• The Department is reviewing all supporting documents.
Outstanding Vouchers
The table below represents the total outstanding vouchers from the sample as at 7 November 2019
Financial Year 2018/ 2019
2017/ 2018
2016/ 2017
2015/ 2016
2014/ 2015
2013/ 2014
Totals
Total No. of Vouchers Required
995 1,346 1,970 2,418 3,219 3,692 13,640
No. of Vouchers Received
987 1,300 1,713 1,630 2,736 3,093 11,459
Total No. of outstanding vouchers
8 46 257 788 483 599 2,181
An intervention with voucher control was initiated and the problem associated with not obtaining documentation from Metrofile was also resolved.
The table below represents the total outstanding vouchers from the sample as at 10 December 2019
Financial Year
2018/19 2017/18 2016/17 2015/16 2014/15 2013/14 Totals
Total No. of Vouchers Required
995 1,346 1,970 2,418 3,219 3,692 13,640
No. of Vouchers Received
988 1,318 1,777 2,005 2,929 3,349 12,366
Total No. of outstanding vouchers
7 28 193 413 290 343 1,274
PART C: GOVERNANCE
2019 - 2020KZN TRANSPORT ANNUAL REPORT 75
Resolution No.
Subject Details Response by the Department
36/2019
(cont…)
The Committees resolves: -
That the Accounting Officer report to the Committee by 31 January 2020 on progress made in resolving this audit finding.
907 additional vouchers were received within a period of one month. The main issue is that outstanding vouchers relating to 2013/14 and 2014/15 period remain high.
Financial Year
2018/ 2019
2017/ 2018
2016/ 2017
2015/ 2016
2014/ 2015
2013/ 2014
Totals
Total No. of payments
995 1,346 1,970 2,418 3,219 3,692 13,640
Total No. of payments received
990 1,321 1,784 2,201 2,957 3,368 12,621
Cancelled payments
-
- 33 20 10 6 69
Total No. of outstanding vouchers
5 25 153 197 252 318 950
Reconciliation of the vouchers to valuations as stated in the immovable asset register
All payment vouchers received to date have been reconciled to the schedules stated on the immovable assets register.
Engagements with the Auditor General and alternative methodologies relating to valuation of the road network
Engagements have been undertaken with the Office of the Auditor General to discuss the possibilities of valuing the road network as at 31 March 2017. The department has an updated road condition assessment and valuation at this date and believes that the use of this valuation together with the subsequent three financial years expenditure with provide a better basis for disclosing and auditing the Immovable Asset Register. This revised register would not have the historic problems experienced missing documents and inaccuracies from years before a proper register was being maintained.
PART C: GOVERNANCE
2019 - 2020 KZN TRANSPORT ANNUAL REPORT76
Resolution No.
Subject Details Response by the Department
36/2019
(cont…)
Valuation as at 31 March 2017
R’000
Paved 25,431,064
Unpaved 4,337,713
Structures 3,971,877
Total Road Infrastructure Value as at 31 March 2017 R33,740,654
Expenditure 2017/18 1,453,938
Expenditure 2018/19 2,314,759
Total Value as at 31 March 2019 R37,509,351
Draft immovable assets register
The department has prepared an immovable asset register up to period 30 November 2019, and the immovable register will be provided to the Office of the Auditor General early in the month of February 2020 to inform their planning processes and to allow for earlier testing of the asset register.
37/2019 DEPARTMENT OF TRANSPORT: COMMITMENTS TO CURRENT AND CAPITAL EXPENDITURE
Noting that:
• The Department did not properly record commitments to current and capital expenditure due to inadequate systems and processes. The Auditor-General was accordingly unable to determine whether further adjustments were necessary to commitments stated at R6.7 billion.
The Department requested and collected order books dating back to the year 2017/18 from all cost centres and regions. An exercise has been conducted to determine the full extent of the commitments of current and capital expenditure. A draft disclosure has been compiled and is currently being reviewed and internally tested to ensure the completeness of the disclosure. This exercise will culminate in final report to the Auditor-General to confirm all commitments have been reported correctly by the Department.
Since October 2019, the Department has centralized the issuing of purchase order books. This approach increases control over the orders issued and the ability to centrally determine the accuracy of commitments at any given point.
The Department has further written to Provincial Treasury to request the implementation of the Logis system to electronically issue orders and manage commitments. This system, once implemented, will bring to zero the number of unreported commitments and over-reporting of commitments. Provincial Treasury is yet to announce its decision on the request.
PART C: GOVERNANCE
2019 - 2020KZN TRANSPORT ANNUAL REPORT 77
PART C: GOVERNANCE
Resolution No.
Subject Details Response by the Department
37/2019
(cont…)
• The Department operates in a decentralised manner in the regions where orders are issued at the various offices where services are rendered. The Department had not identified, through the manual consolidation process, all orders issued by the various offices before the end of the financial year.
• The Department has recalled all old order books for review and is finalising a revised disclosure of the March 2019 commitments for interim auditing in December 2019. The Department has also implemented a new order system to monitor issued orders and track BEC, BAC and HOD approvals.
The Committee resolves: -
That the Accounting Officer report to the Committee by 31 January 2020 on progress made in resolving this audit finding and that the steps implemented will prevent a recurrence in the 2019/20 financial year.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT78
PART C: GOVERNANCE
Resolution No. Subject Details Response by the Department
38/2019 DEPARTMENT OF TRANSPORT: MATERIAL UNDERSPENDING OF THE BUDGET: R265.94 MILLION
Noting that:
(a) The Department has materially underspent its budget by R265.94 million in programme 2 – Transport Infrastructure, due to delays in awarding a departmental contract for the rehabilitation of surfaced roads, due to the large volume of bids received. The contract was only finalised and awarded in February 2019 and will be used for the 2019/20 rehabilitation programme.
(b) As a remedial measure, the Department participated in the eThekwini Metro and Newcastle Municipality contracts from November 2018 and spent R163 million by the end of March 2019 and a further R73 million by May 2019.
The Committee resolves: -
That the Accounting Officer report to the Committee by 31 January 2020 on:
(i) The impact that the expenditure on the municipal contracts in 2018/19 had on the provincial contract;
(i) The municipal contracts did not affect the provincial contract as the provincial contract was designed as a database of suppliers that are invited to price specific projects as and when the department requires rehabilitation work to be performed. The contract period of the provincial contract only commenced after the completion of the works performed on the municipal contract.
(ii) There was no revision in the provincial contract as it does not have a fixed contract price.
(iii) The tender was advertised on 8 May 2018 and closed on 25 May 2018.
(iv) Due to the large volumes of offers received (1005 tender offers) the evaluation process took 8 months to complete.
(v) The contract is now in place for three years, the contract will end in April 2022 and procurement processes to put a new contract in place are planned to start 12 months prior to the end of the contract.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 79
PART C: GOVERNANCE
Resolution No. Subject Details Response by the Department
38/2019
(cont…)
(ii) Whether the provincial contract has been adjusted downwards as a result;
(iii) When the tender was advertised in 2018/19;
(iv) Whether the delay in awarding the bid was preventable; and
(v) Planned interventions to avoid a recurrence in future years.
39/2019 DEPARTMENT OF TRANSPORT: PREDETER-MINED OBJECTIVES – PROGRAMME 2: TRANS-PORT INFRASTRUCTURE (KILOMETRES MAIN-TAINED BY ZIBAMBELE CONTRACTORS)
Noting:
(a) The audit findings on the usefulness and reliability of performance information in Programme 2: Transport Infrastructure relating to kilometres maintained by Zibambele contractors and that insufficient appropriate audit evidence was obtained for the reporting of achievements against the target. This was due to inadequate systems and processes and the failure by management to review underlying schedules.
Further to the audit findings, the outputs for activities performed by Zibambele participants are being measured by the Field Support Officers at an area office level. The outputs are captured on the Service Delivery Report (SDR).
Resolution No. Subject Details Response by the Department39/2019
(cont…)
(b) The Department has updated the procedure manual for managing the performance of Zibambele contractors and the evidence to be produced for this indicator will be the registers that capture the kilometres maintained by each contractor.
The Committee resolves that:
The Accounting Officer report to the Committee by 31 January 2020 on whether the departmental interventions have successfully addressed this audit finding and that the steps implemented will prevent a recurrence in the 2019/20 financial year
50/2019 TRANSVERSAL RESOLUTION (ALL PROVINCIAL DEPARTMENTS) – IRREGULAR EXPENDITURE OF R11.421 907 BILLION RECORDED IN THE 2018/19 FINANCIAL YEAR
Noting that:
(a) The value of irregular expenditure for all provincial departments in the 2018/19 financial year was R11 421 907 billion. The cumulative value of irregular expenditure for all departments as at 31 March 2019 was R41 819 917 billion.
A report was submitted to the Committee
2019 - 2020 KZN TRANSPORT ANNUAL REPORT80
Resolution No. Subject Details Response by the Department
50/2019
(cont…)
The breakdown is as follows
2018/19 Cumulative value as at 31 March 2019
Department R’000 R’000
Office of the Premier
54 296 137 900
Provincial Legislature
5 711 5 590
Agriculture and Rural Development
125 360 715 757
Economic Development and Tourism
13 063 169 442
Education 1 878 809 6 571 945
Provincial Treasury
1 226 25 706
Health 4 518 835 13 444 301
Human Settlements
1 143 626 4 794 651
Community Safety and Liaison
3 863 19 545
Sport and Recreation
26 847 149 469
Cooperative Governance and Traditional Affairs
67 431 606 828
Transport 3 403 705 14 107 972
Social Development
76 367 722 334
Public Works 14 011 40 743
Arts and Culture
88 757 307 734
TOTAL 11 421 907 41 819 917
PART C: GOVERNANCE
2019 - 2020KZN TRANSPORT ANNUAL REPORT 81
PART C: GOVERNANCE
Resolution No. Subject Details Response by the Department50/2019
(cont…)
The main reasons for the irregular expenditure were:
• Payments made on expired contracts
• Fewer than three quotations obtained
• Deviations from inviting competitive bids not in accordance with TR 16A6.4
• Non-submission of declaration of interest forms by suppliers
• Use of implementing agents
• No tax certificates or expired tax certificates
• Non-adherence to local content prescripts
• Contracts entered into with municipalities – no documentation (Human Settlements)
The PFMA provides that an Accounting Officer must take effective steps to prevent irregular expenditure, take disciplinary steps against any official who makes or permits irregular expenditure, and recover losses from officials responsible and that any wilful or negligent failure to comply with these prescripts constitutes an act of financial misconduct.
.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT82
PART C: GOVERNANCE
Resolution No. Subject Details Response by the Department50/2019
(cont…)
(b) The interventions proposed by departments to detect and prevent irregular expenditure in future.
The Committee resolves:
That the Accounting Officers of all departments report to the Committee by 31 January 2020 on the following:
[1] Progress made in the implementation of the proposed interventions to improve the control environment to detect and prevent irregular expenditure and to avoid a recurrence of the audit findings in relation to irregular expenditure, as well the effectiveness of these interventions.
[2] The reasons for these interventions not being implemented in the 2018/19 financial year and in prior years and why such omission does not constitute an act of financial misconduct.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 83
PART C: GOVERNANCE
Resolution No. Subject Details Response by the Department50/2019
(cont…)
[3] Whether irregular expenditure reported in the annual financial statements in 2018/19 and not yet condoned, has been investigated, the outcomes and findings of the investigations, details of disciplinary steps taken against any official/employee responsible for irregular expenditure and where investigations and disciplinary proceedings have not yet been concluded, the reasons and timeframes for anticipated completion.
[4] In relation to irregular expenditure not yet condoned, steps taken to apply to Provincial Treasury for condonation and progress made and where application has not yet been made, the reasons for this.
[5] Steps taken to recover losses from any official responsible for irregular expenditure and progress made in this regard.
[6] Where irregular expenditure is related to fraud, corruption or other criminal conduct, whether the matter has been reported to the South African Police Service or the Provincial Treasury Internal Audit Services for investigation and progress made in such investigations
2019 - 2020 KZN TRANSPORT ANNUAL REPORT84
PART C: GOVERNANCE
Resolution No. Subject Details Response by the Department
52/2019 TRANSVERSAL RESOLUTION – FRUITLESS AND WASTEFUL EXPENDITURE
Noting that:
• The following departments and public entities reported fruitless and wasteful expenditure in the 2018/19 financial year, relating to the current year and prior years:
Department/ Public Entity
R Reasons
Office of the Premier
4 000 Interest on late payments
KZN Gaming & Betting Board
656 Interest on late payment of invoices
Royal Household Trust
21 000 Interest on overdue accounts
Agriculture and Rural Development
58 000 Interest, no shows, damage to hired vehicle and catering not used
ADA 3 542 Interest on late payment of invoices
Mjindi Farming (Soc) Ltd
8 571 Unstated
KZN Tourism Authority
115 000 Unstated
KZN Liquor Authority
149 196 SARS penalties and Telkom interest
Education 14 249 000
Unstated
Treasury 14 000 Interest paid to SARS
Health 6 089 000 Interest, expired stock medicines, duplicate payment, cancelled bookings, HR matters
Human Settlements
502 000 Interest on outstanding levies and legal costs
KZN Housing Fund
269 000 Interest on unpaid levies
Community Safety & Liaison
4 000 No shows
Sport and Recreation
162 000 Services not rendered and payment on expired contract
COGTA 1 500 000 iziNduna payments, no shows, interest on outstanding payment, SARS penalties, overpaid salaries, rental vehicle damages
Transport 900 000 Construction of P318, annual report reprint, no shows
Social Development
441 000 Interest on overdue account, no shows, reconnection fees, after hours booking
Arts and Culture
5 029 000 Interest on overdue accounts, no shows, legal fees and overpayment to service provider (R4.843 m)
TOTAL 29 518 965
[1] Investigations relating to the accommodation no shows (R25,000) are conducted on an ongoing basis as transactions are identified, the process of setting up debts and resolving transactions where acceptable reasons were provided are being pursued. The transactions relating to the construction of P318 (R734,000) and the reprinting of the annual report (R160,000) are recent transactions and are being investigated by the relevant Responsibility Managers who will prepare a report for with recommendations for approval.
[2] Training has been provided to all management and finance officials at the audit improvement workshops.
[3] The appropriate actions to be taken will be determined from each of the investigation reports.
[4] Investigation of the transactions is still in progress by the respective Responsibility Managers, the outcome of these investigations will be submitted to Labour Relations to ensure that appropriate disciplinary action is implemented.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 85
PART C: GOVERNANCE
Resolution No.
Subject Details Response by the Department
52/2019
(cont…)
(a) In most instances the reasons for the fruitless and wasteful expenditure are unacceptable and had the department or public entity exercised adequate care, the expenditure could have been avoided.
(b) Certain departments and public entities had stated opening balances on fruitless and wasteful expenditure from prior financial years that had not yet been resolved. In some instances, these balances are substantial.
(c) The PFMA provides that the Accounting Officer of a Department and the Accounting Authority of a public entity must take steps to prevent fruitless and wasteful expenditure, take disciplinary steps against an official who makes or permits such expenditure, recover losses from the official responsible and that an Accounting Officer/ Accounting Authority commits an act of financial misconduct if they wilfully or negligently fail to comply with any of these provisions.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT86
Resolution No.
Subject Details Response by the Department
52/2019
(cont…)
The Committee resolves:
That the respective Accounting Officers and Accounting Authorities report to the Committee by 31 January 2020 on the following:
[1] The reasons for the prior years’ fruitless and wasteful expenditure not yet being resolved and steps taken to resolve it, with time frames.
[2] Steps taken to prevent a recurrence of fruitless and wasteful expenditure. Sufficient particularity must be provided to enable the committee to assess the effectiveness of those steps.
[3] The reasons for the steps listed under [2] above not being implemented in the 2018/19 financial year and prior years and why such omission does not constitute an act of financial misconduct.
[4] Which officials are responsible for the fruitless and wasteful expenditure, disciplinary steps taken against those officials and the outcomes thereof, as well as steps taken to recover the losses from them. Where no disciplinary steps or steps to recover the loss were taken, detailed reasons must be provided.
PART C: GOVERNANCE
2019 - 2020KZN TRANSPORT ANNUAL REPORT 87
Resolution No. Subject Details Response by the Department
53/2019 TRANSVERSAL RESOLUTION: PROCUREMENT AND CONTRACT MANAGEMENT
Noting that:
(a) The audit findings for thirteen departments on Procurement and Contract Management emanating from non-compliance with legislation, which overlap with the findings on irregular expenditure are as follows:
Contracts were extended without the necessary approval of a properly designated official as required by section 44 of the PFMA and TR 8.2.1 & 8.2.2.
Competitive bidding process was not followed. Goods and services of a transaction value above R500 000 were procured without inviting competitive bids and deviations were approved although it was practical to invite competitive bids as required by TR 16A.6.1 & TR16A.6.4.
A minimum of three quotations were not obtained.
Non-compliance with Preferential Procurement Regulation 8(2) of 2017 on local content and production. Bid documentation did not stipulate the minimum threshold for local content and production.
Tax clearance certificates not provided as required by TR 16A9.1(d).
On Contract Extensions without the Designated Approval; The Department has adopted a percentage-based delegation of authority for the approval of variations. The Delegation framework has been successfully implemented in the Department. Variations in excess of the prescribed Treasury thresholds are referred to Treasury for approval and recorded in an appropriate register;
On approved deviations where procurement process was practical; The Department has implemented a process where the Director: SCM and CFO review reasons why it is impractical to follow the competitive process. All deviation requests must be supported by the Director SCM and CFO prior to Treasury submission;
On non-compliance with Local Content requirements; The Department obtained training from Provincial Treasury. The requirements for Local Content have been added on the departmental SCM checklists. Furthermore, consulting engineers have been briefed on Local Content requirements to include in infrastructure tender documents. Finally, the departmental Bid Adjudication Committee serves as the final checking authority for whether requirements are being attended to;
On valid tax certificates; The process for the final award of all procurement activities requires that CSD be checked at the time of award, this includes the checking of tax status of the recommended bidder. No award is processed to a service provider whose tax affairs is non-compliant;
On awards to bidders who failed to submit a declaration; All declarations are checked by SCM and included in the adjudication report. Bidders who fail to submit declarations are disqualified in the first stage of evaluation;
On advertisement for minimum period; SCM ensures that all bids are advertised for a minimum of 21 days. The Director SCM approves the shortening of advertisements for quotations that are urgent;
On bid committees not composed as required; The Department appointed a Regional-Bid Adjudication Committee to deal with Regional procurement up to CIDB Grade 4. The department is now fully compliant in this regard;
PART C: GOVERNANCE
2019 - 2020 KZN TRANSPORT ANNUAL REPORT88
Resolution No.
Subject Details Response by the Department
53/2019
(cont…)
Contracts were awarded to bidders who did not submit a declaration on whether they are employed by the State as required by TR 16A8.3.
Invitations for competitive bids were not advertised for the minimum period as required by TR 16A6.3(c).
Bid committees were not composed as required by TR 16A6.2(a), (b) & (c).
Contracts were awarded to bidders based on preferential points not calculated in accordance with the Preferential Procurement Policy Framework Act, 2000.
Contracts were awarded to bidders based on pre-qualification criteria that were not stipulated of were different from those stated in the bid invitation in contravention of Preferential Procurement Regulation 4(1) & (2).
SCM processes were not followed by Municipalities performing work on behalf of the Department.
(b) Non-compliance could have been avoided if management regularly monitored compliance and implemented appropriate controls and processes.
On incorrect calculation of preference points; The bid evaluation and adjudication committees verify the preference points system calculations prior to the award of the bid. Where the Department has advertised the bid using the wrong Preference Points system to calculate points, the bid is cancelled and re-advertised;
On awards based on pre-qualification criteria not identified in the bid documents; The Department has suspended the Vukuzakhe policy and is in the process of finalizing a new contractor development policy. All findings in this regard related to the application of the Vukuzakhe policy
Resolution No.
Subject Details Response by the Department
53/2019
(cont…)
(c) Provincial Treasury has identified support interventions following the 2018/19 audit outcomes. Departments are to submit detailed audit action plans to Treasury by 31 October 2019, which will be reviewed and discussed with all accounting officers, and which Treasury will monitor and report progress on to accounting officers quarterly.
The Committee resolves:
That all Accounting Officers report to the Committee by 31 January 2020 on the following:
[1] Detailed audit action plans submitted to Provincial Treasury specifically to address findings on procurement and contract management plus a progress report on the effectiveness of the audit plans.
[2] Steps implemented to ensure risk assessment processes and reviews are adequate to ensure that key compliance risks are mitigated and responded to in good time to prevent a recurrence
PART C: GOVERNANCE
2019 - 2020KZN TRANSPORT ANNUAL REPORT 89
Resolution No.
Subject Details Response by the Department
54/2019 TRANSVERSAL RESOLUTION – FORENSIC INVESTIGATIONS
Noting that:
The Provincial Internal Audit Services has completed the forensic investigations listed below and has made recommendations which are either still in progress or are yet to be implemented by the relevant departments:
Department Ref No. Recommendations
Public Works FR34/2013 Internal control weaknesses to be improved and service provider to be blacklisted
Public Works FR09/2015 Irregular expenditure of R1 630 636.64 to be disclosed
Public Works FR42/2016 Internal control weaknesses to be improved
Public Works FR20/2017 Close out report issued
Public Works FR33/2017 Disciplinary proceedings not yet instituted
Public Works FR02/2018 Disciplinary proceedings not yet instituted. Criminal proceedings against service provider not yet instituted.
Public Works FR26/2018 Criminal proceedings against service provider not yet instituted
Economic Development
FR14/2017 Disciplinary proceedings not yet instituted.
Economic Development
FR04/2018 PIAS experiencing challenges in obtaining documents and conducting interviews.
Economic Development
FR07/2018 PIAS experiencing challenges in obtaining documents and conducting interviews.
Economic Development
FR09/2018 &
FR30/2018
PIAS experiencing challenges in obtaining documents and conducting interviews.
FR51/2014
The report is to be tabled to the Department by the Provincial Treasury. This was supposed to have been presented to the Department in December 2019.
PART C: GOVERNANCE
2019 - 2020 KZN TRANSPORT ANNUAL REPORT90
PART C: GOVERNANCE
Resolution No.
Subject Details Response by the Department
54/2019
(cont…)
Transport FR51/2014 Criminal proceedings finalised. Disciplinary proceedings to be instituted.
Treasury FR15/2017 Internal control weaknesses to be improved
Education FR30/2012 Disciplinary proceedings underway and criminal investigation in progress
Education FR28/2012 Five disciplinary cases still pending, 12 civil cases are pending, 101 civil cases yet to be instituted, 108 criminal cases still pending
Education FR78/2013 Disciplinary proceedings underway
Education FR27/2015 Disciplinary proceedings underway, civil recovery not yet instituted, criminal case not yet registered
Education FR33/2015 Disciplinary process and civil recovery not yet commenced
Education FR35/2015 Criminal case to be re-registered.
Education FR43/2015 Investigation delayed as insufficient documentation provided by Department
Education FR19/2018 Investigation delayed as insufficient documentation provided by Department
Social Development
FR12/2015 Disciplinary action and civil recovery yet to be instituted. Criminal case still to be registered.
Social Development
FR01/2016 Disciplinary action and civil recovery yet to be instituted. Criminal case still to be registered.
Social Development
FR04/2016 Disciplinary action and civil recovery yet to be instituted. Criminal case still to be registered.
Social Development
FR20/2018 Criminal case to be registered.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 91
PART C: GOVERNANCE
Resolution No. Subject Details Response by the Department
(54/2019
(cont…)
Health FR27/2016 Disciplinary action yet to instituted
Health FR05/2018 Disciplinary action and civil recovery yet to be instituted. Criminal case still to be registered.
Arts and Culture
FR29/2016 Criminal case still under investigation. Disciplinary action and civil recovery yet to be instituted
COGTA FR30/2016 Disciplinary action yet to be instituted
COGTA FR22/2016 Improvement on Traditional Council governance issues recommended
COGTA FR09/2017 Disciplinary action yet to be instituted
COGTA FR12/2018 Investigation delayed as insufficient documentation provided by Department
COGTA FR34/2018 Investigation delayed as insufficient documentation provided by Department
Premier FR14/2013 DG obtained legal opinion on waiver of disciplinary proceedings. PIAS obtaining further legal opinion. Criminal case yet to be registered.
Premier FR18/2013 DG obtained legal opinion on waiver of disciplinary proceedings. PIAS obtaining further legal opinion. Criminal case yet to be registered.
Premier FR41/2013 DG obtained legal opinion on waiver of disciplinary proceedings. PIAS obtaining further legal opinion. Criminal case yet to be registered.
Premier FR19/2015 DG obtained legal opinion on waiver of disciplinary proceedings. PIAS obtaining further legal opinion. Civil proceedings yet to be instituted. Criminal case yet to be registered.
Communi ty Safety
FR23/2014 Disciplinary action yet to be instituted
Communi ty Safety
FR21/2018 Disciplinary action yet to be instituted
2019 - 2020 KZN TRANSPORT ANNUAL REPORT92
PART C: GOVERNANCE
Resolution No.
Subject Details Response by the Department
54/2019
(cont…)
The Committee resolves:
That the Accounting Officers of the relevant departments report to the Committee by 31 January 2020 on:
(i) The steps taken to implement the recommendations, progress made therein, the reasons for any delays and where no steps are being contemplated, a detailed explanation supported by legal opinion.
(ii) Where forensic investigations are being delayed due to insufficient documentation or information being provided by Departments, an explanation as well as a report on action taken against the guilty officials and steps taken to remedy the default.
55/2019 TRANSVERSAL RESOLUTION – INTERNAL INVESTIGATIONS
Noting that:
Several departments have conducted internal investigations in the 2018/19 financial year relating to various alleged irregularities spanning, in some cases, over more than one financial year. Some of these investigations have been concluded while some are still in progress.
There were eight (08) matters that were reported for investigation. These matters have received a preliminary investigation and are all forwarded the Provincial treasury for a forensic investigation. These are currently receiving attention as FR14/2019(A-H).
All departmental forensic investigations are conducted by the Provincial Treasury.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 93
PART C: GOVERNANCE
Resolution No.
Subject Details Response by the Department
55/2019
(cont…)
The Committee resolves:
That Accounting Officers, by 31 January 2020:
[1] Provide copies of all reports of investigations that have been completed in the 2018/19 financial year to the Committee.
[2] Report to the Committee on progress made in the implementation of the recommendations contained in the reports, including disciplinary cases that have been initiated against officials and the outcomes thereof, criminal cases that have been opened, civil proceedings that have been commenced to recover monies and blacklisting of service providers.
[3] Where investigations are still in progress, provide a report on the anticipated date of completion, challenges experienced in conducting or finalising the investigations and steps taken to address the challenges.
56/2019 TRANSVERSAL RESOLUTION – RISK MANAGEMENT
Noting:
The report of the Provincial Audit and Risk Committee on the lack of adequate risk management in some departments and the slow progress made in the implementation of risk mitigation plans, particularly in addressing risks classified as critical and major.
1) Steps taken to implement the outstanding risk mitigation plans in the 2018/19 Departmental Risk Register.
- The Department reviewed the 2018/19 risks during the risk assessment workshop that was held to develop the 2019/20 risk register. During this process, facilitation started by looking into the 2018/19 risk register to ensure that outstanding mitigation are attended to. Clarity was also sought if the risk will be mitigated using internal or external capacity in order to plan properly.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT94
PART C: GOVERNANCE
Resolution No.
Subject Details Response by the Department
56/2019
(cont…)
The Committee resolves:
That the Accounting Officers of the relevant departments report to the Committee by 31 January 2020 on the following:
[1] The steps taken to implement all outstanding risk mitigation plans identified in the 2018/19 departmental risk registers.
[2] A progress report on the implementation of the 2019/20 departmental risk mitigation plans, particularly those relating to critical and major risks and steps taken to ensure a speedy implementation of risk mitigation plans.
[3] Steps taken to capacitate the departmental risk management function, including risk management training for members of the risk management committee.
[4] Progress made in linking risks to departmental performance indicators.
2) There following depict the progress as per the Departmental Risk Register (Q2):
- The Department has top 20 prioritized risks. These risks have a total of 45 mitigation plans put in place to either terminate, reduce or avoid the risk. There are 11 mitigations that have been completed, 32 are still in progress and 2 at not yet started (these are in relation to the IT offsite storage)
3) Training/awareness of the Risk Appetite was conducted. Currently members of the Risk Committee are completing the National Treasury e-learning training and 50% of members have completed the training.
4) Risks were linked with the departmental objections and performance indicators.
57/2019 TRANSVERSAL RESOLUTION – CONSEQUENCE MANAGEMENT (TRANSGRESSIONS)
Noting that:
(a) During the prior year audit (2017/18 financial year), the Auditor-General reported on findings relating to transgressions by officials or other role players for management to investigate.
1. A Case Management schedule has been drawn up, and remedial action has been taken against one(1) official, resulting in a Written Warning.
2. A consultant has been appointed to investigate the allegations as well as cases regarding consequence management. A meeting is scheduled for 6 January 2020 to hand over the case files. The time frame for these matters to be dealt with is, end of May 2020.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 95
PART C: GOVERNANCE
Resolution No.
Subject Details Response by the Department
57/2019
(cont…)
(b) During the current year audit (2018/19 financial year) the Auditor-General reported that some Departments had not investigated all of some of those matters or had not done so properly.
(c) In the current year audit (2018/19 financial year), the Auditor-General identified further transgressions for management to investigate.
The Committee resolves:
That the Accounting Officers of the relevant departments report to the Committee by 31 January 2020 on the following:
[1] The reasons for their failure to investigate and resolve all matters reported by the Auditor-General for investigation in the 2017/18 audit.
[2] The steps taken to investigate and resolve all the 2017/18 as well as the 2018/19 matters reported by the Auditor-General for investigation and time frames for finalisation thereof.
[3] The findings and recommendations, as well as the outcomes of each investigation, including disciplinary steps taken, civil proceedings commenced for recovery of losses, criminal cases opened where relevant and steps taken to “blacklist” suppliers, where applicable.
3. Disciplinary action will be taken once all case files have been handed over by the consultant
2019 - 2020 KZN TRANSPORT ANNUAL REPORT96
PART C: GOVERNANCE
Resolution No.
Subject Details Response by the Department
58/2019 TRANSVERSAL RESOLUTION – PREDETERMINED OBJECTIVES
Noting:
(a) The material findings of the Auditor-General on the usefulness and reliability of the reported performance information of some Departments.
(b) The root cause was the lack of proper performance management systems and processes and the failure by management to perform adequate verifications to ensure a complete performance report was supported by reliable information.
(c) In some Departments this is a recurring finding where management has failed to implement action plans to address audit findings in previous financial years.
The Committee resolves:
That the Accounting Officers of the relevant departments report to the Committee by 31 January 2020 on measures implemented to address the audit findings and to prevent a recurrence, with timeframes for implementation.
Measures implemented to address audit findings and prevent recur-rence including for implementation.
Key Finding Root Cause Action Responsibility Time frame
Useful-ness and reliability of per-formance informa-tion
Lack of proper per-formance manage-ment sys-tems and processes, and failure by man-agement to perform adequate verifica-tions, to ensure a complete perfor-mance report was supported by reliable informa-tion
1.Have an approved project plan for all projects to be imple-mented to ensure proper project man-agement
2. Have an approved clear procedure manual on data & evidence manage-ment “(with empha-sis/ priority placed on how evidence & data is managed and stored per perfor-mance measure)”
3. Procedure manuals to be used as a guide-line to manage perfor-mance information by existing employees, ensuring that new employees are work-shopped on it.
4.Each component must have in place validation teams to conduct enough validations prior to monthly and quarter-ly reporting to Head Office and to Monitor-ing and Evaluation
5. Periodic checking of reported outputs against the plan and validated information in line with the proce-dure manual
6. Perform Quarterly validation sessions
7. Quarterly Bi-lat-eral on Performance information per pro-gramme
8. Adhere to and implement the audit improvement plan throughout the year.
9. Implement cor-rective measures and consequence manage-ment for non-com-pliance
DDGs of branches
DDGs of branches
Supervisors, Cost Centre Managers, Di-rectors, Chief Directors
Cost Centre Managers, Di-rectors, Chief Directors
Supervisors, Cost Centre Managers, Di-rectors, Chief Directors
M&E
DDGs
HOD and rele-vant DDG
ALL
Line function supervisors and respon-sibility man-agers
31 March
31 March
Ongoing
30 April each year
Ongoing
Post quarterly sign off by the HOD
Quarterly
Ongoing
Ongoing
2019 - 2020KZN TRANSPORT ANNUAL REPORT 97
PART C: GOVERNANCE
Resolution No.
Subject Details Response by the Department
59/2019 TRANSVERSAL RESOLUTION – FILLING OF CRITICAL POSTS
Noting:
That vacancies exist in critical management posts within departments and the adverse effect this is having on audit findings, particularly on compliance with legislation, internal controls and financial and performance management.
The Committee resolves:
That the Accounting Officers of the relevant departments report to the Committee by 31 January 2020 on progress made in the filling of critical posts and the time frames for the filling of those posts.
A report was submitted to the Committee
60/2019 TRANSVERSAL RESOLUTION – MATERIAL MISSTATEMENTS IN ANNUAL FINANCIAL STATEMENTS
Noting that:
(a) The annual financial statements submitted for auditing by some departments were not prepared in accordance with the prescribed financial reporting framework. Material misstatements identified by the auditors were corrected in some instances, resulting in the financial statements receiving an unqualified audit opinion, but in others they were not corrected resulting in a qualified audit opinion.
(b) This has been a recurring finding of the Auditor-General over an extended period.
[1] The non-compliance with s40(1)(b) of the PFMA was as a result of changes made to the financial statements as a result of audit findings made by the AGSA during the audit and the qualifications relating to immovable assets and commitments.
[2] The department does not believe that there was wilful or negligent action by officials that resulted in this finding.
[3] The processes relating to irregular expenditure identification are being improved on an ongoing basis with a system being implemented to assist in this process during the 2020/21 financial year. Further to this processes relating to commitments, accruals and payables are being improved and strengthened with the department anticipating the implementation of an invoice tracking system from the beginning of April 2020 to assist in this process going forward.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT98
PART C: GOVERNANCE
Resolution No.
Subject Details Response by the Department
60/2019
(cont…)
(c) It is the responsibility of the Accounting Officer to prepare financial statements in accordance with generally recognised accounting practices in terms of section 40 of the PFMA and the wilful or negligent failure to do so constitutes financial misconduct in terms of section 81.
The Committee resolves:
That the Accounting Officers of the relevant departments report to the Committee by 31 January 2020 on the following:
[1] The reasons for non-compliance with section 40(1)(b) of the PFMA. Sufficient particularity must be provided to enable the committee to establish whether the failure was due to wilfulness or negligence.
[2] Disciplinary steps taken against any official who acted wilfully or negligently. Where the non-compliance was due to a lack of capacity or skills or vacancies, the report must state the steps taken to address this with time frames.
[3] Measures put in place to prevent a recurrence of this audit finding and an evaluation of the effectiveness of these measures in the current financial year.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 99
PART C: GOVERNANCE
Resolution No.
Subject Details Response by the Department
61/2019 TRANSVERSAL RESOLUTION – EXPENDITURE MANAGEMENT – NON-PAYMENT OF INVOICES WITHIN 30 DAYS
Noting:
(a) The findings of the Auditor-General that some departments are not making payment within 30 days or within an agreed upon period after receipt of invoices, as required by Treasury Regulation 8.2.3.
(b) This constitutes a contravention of section 38(1)(f) of the PFMA which provides that the accounting officer must pay all money owing by the department within the prescribed or agreed period.
(c) An accounting officer commits an act of financial misconduct if she/he wilfully or negligently fails to comply with a requirement of section 38 of the PFMA.
The Committee resolves:
That all relevant Accounting Officers submit a report to the Committee by 31 January 2020 on the reasons for non-payment of invoices within 30 days with sufficient particularity to enable the Committee to determine whether an act of financial misconduct was committed, the steps taken to address this audit finding and measures put in place to prevent a recurrence.
The following are interventions the department has designed to deal with the delays in the payment of invoices:
o The department issued a circular on settlement of payments within 30 days detailing measures to be undertaken to ensure compliance with Trea-sury Regulation 8.2.3.
o Responsibility Managers were instructed to en-sure that reasons for the delay in the payment of invoices within 30 days are documented on the payment voucher together with the relevant doc-umentation to support reasons provided.
o The department issued a circular on non-compli-ance with payment of invoices within 30 days.
o Financial Services at Head Office circulates a list of all invoices that were not paid within 30 days and Responsibility Managers are required to complete an exception report detailing all invoic-es that were not paid within 30 days together with reasons for not making payments timeously.
o Responsibility Managers were also instructed to implement consequence management processes to ensure that individuals are held accountable for invoices that are paid late without valid rea-sons.
o The issue of non-payment of invoices within 30 days was also discussed during the Audit Im-provement Workshops held for all four Regional Offices and Head Office.
o A report of invoices not paid within 30 days detailing the number and values of Invoices not paid per Responsibility is also tabled at Monthly Management Meetings.
The department embarked on a process to source an effective invoice tracking system that will assist the department as well as its suppliers to constantly track and monitor the process of payment of invoices. Train-ing is currently in progress at both Head Office and Regional Offices on how to use the system. Pilot will commence in February 2020 at Head Office. The sys-tem should be in full implementation by the beginning of April 2020.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT100
PART C: GOVERNANCE
Resolution No.
Subject Details Response by the Department
62/2019 TRANSVERSAL RESOLUTION – COMMITMENTS ON AUDIT FINDINGS AND RELATED MATTERS
Noting that:
Accounting Officers of some departments have made commitments in the current year audit (2018/19) and in prior year audits to resolve audit findings and related matters such as transfer payments, procurement, supply chain management, expenditure management, IT, vacancies, annual financial statements and internal control deficiencies, some of which have not yet been resolved.
The Committee resolves:
That the Accounting Officers of the relevant departments report to the Committee by 31January 2020 on the reasons for the commitments being unresolved, the steps taken to resolve the commitments and time frames for finalisation thereof.
Immovable Assets.
This commitment is unresolved however is in progress, with improvements each year.
In the 2017/2018 the AGSA concluded that the department did not recognise the value of all road infrastructure assets under construction as required by the MCS on Capital Assets and that the Accounting policy adopted by the department was inappropriate.
The department undertook the following interventions to ensure accurate reporting for the 2018/19 audit:
1. The department implemented a process where we collected all key data from our financial system (BAS) and Geographic Information System for verification with regards accurate financial disclosure, condition and status of road network as at year-end.
2. The Department of Transport was assigned custodial powers in terms of the KZN Land Administration and Immovable Asset Management Act. This was so the infrastructure network is reported in the most meaningful manner.
3. The department adjusted its accounting policy to be in line with the requirements
4. The department reported on the full value of the infrastructure network as at 31 March 2019.
In the 2018/2019 Audit, the AG was satisfied that the department had reported on all infrastructure assets as required and that the revised accounting policy was appropriated however, was unable to obtain sufficient appropriate audit evidence that immovable assets had been properly accounted for in the prior year.
The Auditor-General audited and was satisfied with the value of current year additions to immovable assets, however the department could not provide the requested 3,500 final payment certificates relating to the 160 roads selected within the remaining time in the audit. The department requested an extension to the audit deadline to allow for the documentation to be provided, however this request was not granted.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 101
PART C: GOVERNANCE
Resolution No.
Subject Details Response by the Department
62/2019
(cont…)
Vukuzakhe Awards not approved by a BAC
In the 2017/2018 Audit, the AG had concluded that, Bids relating to Vukuzakhe awards were not adjudicated by a bid adjudication committee as required by Treasury Regulations 16A6.2(a).
The finding was repeated in the 2018/2019 financial year due to the finding only being finalised during the 2018/2019 financial year, with transactions already having taken place. Further the department engaged with the Provincial Treasury to try obtain exemption from the specified requirement to allow this key empowerment programme to proceed. However, the Provincial Treasury was not able to provide the department with the required exemption and as a result the department withdrew the Vukuzakhe Emerging Contractor Development Policy with effect from 17 July 2019 and referred it for review to ensure alignment with the procurement prescripts. The instruction further required the immediate hold on all advertising and award of Vukuzakhe bids.
61/2020 IRREGULAR EXPENDITURE – R3.4 BILLION IN 2018/19 AND CUMULATIVE R14.1 BILLION (RELATING TO TRANSVERSAL RESOLUTION 50/2019 AND 57/2019)
Noting that:
[1] The Department has completed investigations relating to 187 orders worth R1.7 billion, investigations relating to 33 orders worth R828.6 million are in progress and investigations for 16 065 orders worth R11.459 billion have not yet commenced.
[2] Cases worth R141.8 million have been submitted to Labour Relations for disciplinary action.
[3] The Department would have to source assistance in terms of capacity and expertise to conduct the investigations for the 16 065 orders that have not yet commenced.
• The department has completed a further 200 cases with a value of R 2,857,654,279.26, except for the disciplinary action. There are 581 cases with a value of R772,972,731 that are currently in progress and these will be completed by 31 October 2020.
For irregular expenditure identified in the 2019/2020 financial year, the department’s Internal Compliance Unit has commenced with investigating 238 cases with a value of R140 million.
The Department has compiled bid specifications for the balance of the irregular expenditure cases. The bid was advertised in the last week of March 2020, however with COVID 19, this was re-advertised at the end of July 2020 with a closing date of 8 September 2020. The bid is for a period of 3 years, as this is how long it is anticipated to get to a stage where the department is investigating current cases of irregular expenditure.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT102
Resolution No.
Subject Details Response by the Department
61/2020 (cont…)
[4] The Department has not yet submitted its application for condonation of irregular expenditure to Provincial Treasury for condonation.
The committee resolves:
That Accounting Officer report to the Committee by 30 April 2020 on progress made in:
a) completion of investigations underway and commencement of investigations not yet commenced, together with time frames for the anticipated completion of the investigations;
b) disciplinary proceedings; and
c) the submission of the application for condonation of irregular expenditure to Provincial Treasury.
(d) The department has identified 108 officials against whom disciplinary action must be taken. Disciplinary letters have been sent to 30 officials. 3 officials have signed and returned the disciplinary letters. Consultations have been held with the Provincial Treasury and the Office of the Premier to provide guidance to the department on the disciplinary process to be followed, considering the fact that there are old cases and the number of cases that have been identified as irregular expenditure.
c) The department has made 5 submissions to the Provincial Treasury for condonation. This consisted of 65 cases with a value of R1,723,413,217. Of this value Treasury condoned R1,137,740,762 (18 Cases) and this was recorded in the AFS. The department is currently in discussions with the Provincial Treasury to address their queries.
PART C: GOVERNANCE
2019 - 2020KZN TRANSPORT ANNUAL REPORT 103
Resolution No.
Subject Details Response by the Department
62/2020 FRUITLESS AND WASTEFUL EXPENDITURE – R900 000 IN 2018/19 (RELATING TO TRANSVERSAL RESOLUTION 52/2019 AND 57/2019)
Noting that:
Investigations relating to fruitless and wasteful expenditure are still in progress.
The committee resolves:
That the Accounting Officer report to the Committee by 30 April 2020 on progress made in concluding the investigations, as well as steps taken to implement consequence management, including recovery of losses from officials responsible and disciplinary action
The Fruitless and Wasteful Expenditure balance of R900,000
Category Value Current Status
No Show Ac-commodation
R25,000 The investigation of this expenditure was delayed due to the official investigating these transactions passing away and then the official to whom the investigation was transferred to resigning, The component responsible for investigating this is currently assisting co-ordinate the provision of information and responses to the Auditor-General, the transactions will be investigated in October after the completion of the AG audit
Printing of 2017/2018 Annual Report
R160,000 The response to the initial investigation has required additional information be sought
Construction of P318 (Phase 2)
R734,000 An amount of R310 117.05 was transferred to debts to be recovered from the service provider responsible for the delays.
The remainder of the amount being R310,000 relates to work stopped by business forums and should not be disclosed as wasteful expenditure.
R900,000
63/2020 FORENSIC INVESTIGATIONS (RELATING TO TRANSVERSAL RESOLUTION 54/2019)
Noting that:
The report relating to FR 51/2014 recommends that disciplinary action be instituted by the Department but the report has not yet been presented to the Department.
The committee resolves:
That the Accounting Officer follow up on the report and submit a progress report to the Committee by 30 April 2020 on steps taken to implement the recommendations.
The Department still awaits the Provincial Internal Audit and Assurance Service to table the report. Follow-ups were made with the Provincial Treasury, however the process was interrupted and disturbed by the national lockdown as a result of COVID-19.
PART C: GOVERNANCE
2019 - 2020 KZN TRANSPORT ANNUAL REPORT104
Resolution No.
Subject Details Response by the Department
64/2020 RISK MANAGEMENT (RELATING TO TRANSVERSAL RESOLUTION 56/2019
Noting that:
The Department has identified 20 top risks and 45 mitigation plans to address these risks. Eleven of the plans have been implemented, 32 are in progress and 2 have not yet commenced.
The committee resolves:
That the Accounting Officer submit its updated Risk Register to the Committee by the 30 April 2020, indicating progress made in addressing all critical and major risks.
The Department conducts the risk assessments regularly. The table below depict progress made in addressing all critical and major risks.
No. Risk Magnitude
Period/ QTR
No. of Identified
Risks
No. of Agreed Action Plans
No. of Completed
Action Plans
No. of Outstanding Action Plans
1. Critical Q1 5 17 5 12
Q2 04 11 0 11
Q3 02 07 01 06
Q4 02 07 01 06
2. Major Q1 7 19 6 13
Q2 12 29 10 19
Q3 07 18 06 12
Q4 05 13 6 7
81/2020 INTER-DEPARTMENTAL CLAIMS OWING TO PUBLIC WORKS: R293.109 MILLION AS AT 31 DECEMBER 2019
Noting:
[1] That inter-departmental claims balances owing by Provincial Departments to Public Works as at 31 December 2019 amounted to R293.109 million.
[2] R79.9 million of that amount was 120 days or more overdue, R9.265 million was 90 days or older, R77.111 million was 60 days or older and R26.414 million was 30 days or older.
.
The department pays Public Works on time on a monthly basis for all current invoices.
There are however a few invoices that were part paid over 5 years ago, totalling R7 330 701.59, that reflect as outstanding on the Public Works statement. These invoices were part paid as there were queries with regards to the invoice amount at the time. The department is in consultation with Public Works with regards to this amount and is seeking an amicable solution to the long outstanding invoices
PART C: GOVERNANCE
2019 - 2020KZN TRANSPORT ANNUAL REPORT 105
Resolution No.
Subject Details Response by the Department
81/2020
(cont..)
[3] The delays in settlement of claims by client departments has resulted in an adverse audit finding against Public Works on material impairment of claims recoverable.
The committee resolves:
That the Accounting Officer of each Department report to the Committee by 30 April 2020 on:
a) the amount owing to Public Works as at 31 March 2020, together with an age analysis;
b) the reasons for the delays and defaults in the settlement of claims payable to Public Works; and
c) measures implemented to ensure that payment of invoices will be made to Public Works within 30 days as required by Treasury Regulation 8.2.3
PART C: GOVERNANCE
2019 - 2020 KZN TRANSPORT ANNUAL REPORT106
PART C: GOVERNANCE
REPORT OF THE AUDIT & RISK COMMITTEE ONVOTE 12 – TRANSPORT
The Committee reports that it has complied with its responsibilities arising from the Public Finance Management Act, No.1 of 1999 (PFMA), Treasury Regulations 3.1, including all other related prescripts, and is pleased to present its report for the financial year ended 31 March 2020.
The Provincial Audit and Risk Committee (PARC) is the shared audit and risk committee for the provincial departments, and is further sub-divided into three Cluster Audit & Risk Committees (CARC’s) that provide oversight of key functions to the KZN Provincial Government Departments. The Department of Transport is served by the Economic Sector and Infrastructure Development (ESID) Cluster Audit & Risk Committee.
The Committee has adopted appropriate formal terms of reference contained in its Audit and Risk Committee Charter and has regulated its affairs in compliance with this charter; and reports that it has discharged all of its responsibilities as contained therein.
1. Audit Committee Members and Attendance
The PARC and ESID CARC consists of the members listed hereunder who have met as reflected below, in line with the approved terms of reference.
# Name of Member PARC Meetings Attended
ESID CARC Meetings Attended
1. Mr S Simelane (Acting Chairman of PARC and Economic CARC) 10 of 10 4 of 42 Mr V Ramphal 10 of 10 4 of 43. Mr M Tarr 10 of 10 4 of 44. Mr P Christianson 9 of 10 N/A*5. Ms T Njozela 9 of 10 N/A*6. Mr D O’Connor 10 of 10 N/A*7. Ms N Sithole (resigned July 2019) 3 of 10 N/A*
* refers to PARC members who did not serve on the ESID CARC
2. The Effectiveness of Internal Controls
The Committee has reviewed the reports of the Provincial Internal Audit Service (PIAS), the Audit Report on the Annual Financial Statements and Management Report of the Auditor General of South Africa (AGSA) and has noted with concern, the weaknesses in controls in the following areas:
• Expenditure Management – Irregular Expenditure• Revenue Management – Accrued departmental revenue• Procurement and contract management• Human Resource Management• Performance Information
The Committee noted with concern the number of control deficiencies identified by the auditors, both internal and external. Although management interventions on certain control weaknesses were considered by the Committee, the Accounting Officer is urged to urgently implement strategies that will prevent any further regression on audit outcomes.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 107
PART C: GOVERNANCE
3. Effectiveness of Internal Audit
The PIAS performed effectively during the period under review. The Committee has, through the PARC and CARC monitoring processes assessed the both the PIAS and its audit reports on the assessment of the adequacy and effectiveness of controls designed to mitigate the risks associated with the operational and strategic activities of the Department. These audit reports were tabled at quarterly CARC meetings.
The PIAS planned to conduct twenty (20) audit assignments for the period under review, of which thirteen (13) were finalized, two (2) were cancelled, two (2) were rolled over and three (3) were carried over to the 2020/21 financial year with the approval of the Audit Committee.
The PIAS performed effectively during the period under review; notwithstanding concerns raised by the Committee in respect of the financial and human resource limitations imposed upon the unit. The Committee will monitor the progress made by the PIAS against its operational plans in order to ensure that it continues to fulfil its mandate and add value to the department.
4. Risk Management
The responsibilities of the Committee with respect to risk management are formally defined in its Charter. For the period under review, the Committee’s responsibilities have been focused, amongst other things, on the quarterly review of the Department’s risk register and monitoring progress against the Risk Management Operational Plan.
As at the end of the 19/20 financial year, the Department’s risk register status was as follows:
Risk Grouping Total Critical Major Moderate Minor Insignificant
Number of Identified Risks 2 5 30 20 24 81Number of Identified Action Plans 7 13 63 46 47 176
Number of Completed Action Plans 1 6 25 30 31 93
No. of Completed Action Plans as a Percentage (%)
14% 46% 40% 65% 66% 53%
The Committee notes, with concern, the slow progress made by the Department on the implementation of its risk mitigation plans with a 53% completion rate. The Department is urged to 1) implement the outstanding risk mitigation plans, particularly for risks classified as critical and major; and 2) update the Department’s risk register with strategic risks which should be identified and assessed as part of the 2020/21 strategic planning and the 2020/21 annual planning processes.
Although the Department is commended for having a functional risk management committee which is convened on a regular basis, and having made significant progress in completing improvement plans relating to Fraud Prevention; the Committee is, however, concerned about the slow progress being made on the implementation of Occupational Health and Safety improvement plans and the non-existence of a Business Continuity Plan.
With the current focus being on COVID 19 pandemic, the Department is urged to ensure continued compliance with prescribed control measures, including development of the Business Continuity Plan so that service delivery interruptions could be minimised.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT108
PART C: GOVERNANCE
5. Quality of in year management and monthly/quarterly reports
The Committee was satisfied with the content and quality of quarterly reports in respect of in year management and quarterly performance prepared and issued by the Accounting Officer of the Department submitted in terms of the PFMA and the Division of Revenue Act during the year under review.
However, the Committee noted with concern the material underspending of the budget for transport infrastructure by R1.46 billion due to delays in infrastructure projects.
6. Evaluation of Financial Statements
The Committee has:
• Reviewed and discussed the Annual Financial Statements, including the audit report, with the Auditor General and the Accounting Officer;
• Reviewed the Auditor General’s Management Report;
• Reviewed the Department’s processes for compliance with legal and regulatory provisions, where concerns have been noted with procurement and contract management and the failure to record the full extent of irregular expenditure in the notes to the financial statements, as required by section 40(3)(b)(i) of the PFMA; and
• Reviewed the qualified conclusion on accrued departmental revenue resulting from the audit of the Department. The Committee notes with concern that the status of the accounting records made it impossible for the Auditor General to determine whether the accrued departmental revenue for the current year had been properly accounted for.
• Reviewed and noted the emphasis of matter on immovable tangible capital assets and noted that completed roads amounting to R59,6 billion (2018/19: R57,6 billion) were removed from the financial statements. The department adopted a phased in approach relating to disclosure of completed roads and related infrastructure in accordance with paragraph 4.4: Modified Cash Standard – Accounting and reporting for immovable assets.
7. Forensic Investigations
During the period under review, the Committee noted that there were twenty two (22) forensic investigations from 1 April 2019 to 31 March 2020, all relating to alleged supply chain management and procurement, irregular payments, irregularities and mismanagement of funds and human resource irregularities which the department has referred to the PIAS for investigation.
• From the twenty two (22) investigations, ten (10) of these investigations relating to Phase 1 were completed and twelve (12) are in-progress.
• All the ten (10) matters completed had disciplinary actions recommended.
• The Committee further noted that eight (8) matters are currently under criminal investigation by the South African Police Service (SAPS), one matter was finalised and one (1) more matter was withdrawn by SAPS.
The Department and the PIAS are urged to promptly finalize the outstanding investigations, and work together to implement recommendations made in the finalised investigations.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 109
PART C: GOVERNANCE
8. Auditor-General’s Report
The Committee has monitored the implementation of corrective action plans to address the audit issues raised by the Auditor General in the prior year. The Committee has met with the Auditor General of South Africa to discuss and evaluate the major issues that emanated from the current regulatory audit. The Committee will ensure that corrective actions in respect of the detailed findings emanating from the current regulatory audit continue to be monitored on a quarterly basis through the CARC processes.
The Committee concurs and accepts the conclusion of the Auditor General’s qualified opinion on the Annual Financial Statements, and is of the opinion that the Audited Annual Financial Statements be accepted and read together with the report of the Auditor General.
9. Appreciation
The Committee wishes to express its appreciation to the Management of the Department, the Auditor General of South Africa, and the Provincial Internal Audit Services for the co-operation and support they have provided to enable us to compile this report.
______________________
Mr. S. SimelaneActing Chairman: Provincial Audit and Risk Committee
30 November 2020
9. Appreciation
The Committee wishes to express its appreciation to the Management of the Department, the
Auditor General of South Africa, and the Provincial Internal Audit Services for the co-operation
and support they have provided to enable us to compile this report.
______________________
Mr S Simelane
Acting Chairman: Provincial Audit and Risk Committee
30 November 2020
2019 - 2020 KZN TRANSPORT ANNUAL REPORT112
PART D: HUMAN RESOURCES MANAGEMENT The information contained in this part of the annual report has been prescribed by the Minister of PublicService and Administration for all departments in the public service.
INTRODUCTION
• The status of Human Resources in the department
The Human Resource Practices Directorate is responsible for the provision of efficient human resource practices and administration services.
• Human Resource Priorities for the year
The filling of identified critical and funded vacancies remained a key priority, because it is critical to improving service delivery.
• Workforce Planning and Strategies to Attract a Skilled Workforce
The department continues to implement the Occupational Specific Dispensation (OSD) for engineers and related professionals to assist in managing career paths of existing employees in these occupations. This is also manifested through the provision of grade and accelerated grade progression, such as automatic promotion to a higher grade after serving the required number of years.
The Human Resource Development Directorate contributes towards the achievement of the Provincial Growth and Development Strategy and Plan through the implementation of Adult Education and Training, Learnerships, Apprenticeships, Internships, Skills Programmes, Bursaries, Work-integrated Learning. Through these learning programmes HRD has been targeting the vulnerable groups which is youth, African females, and Persons with Disabilities.
• Employee Performance Management
Employee Performance Management is aimed at planning, managing and improving employee performance. The aim of performance management is to optimise every employee’s output in terms of quality and quantity, thereby improving the department’s overall performance and service delivery. The primary orientation of performance management is to be developmental while allowing for effective response to consistently inadequate performance and for recognising outstanding performance. Chapter 4 of the Senior Management Service (SMS) Handbook provides a framework for the management of performance for employees on remuneration band A to D (salary levels 13 to 16).
The departmental EPMDS Policy provides a standardised framework for employee performance management on salary levels 1 to 12, which is inclusive of employees covered by an OSD and employees in elementary occupations in the department. It shares similarities and must be linked with the SMS PMDS, as is a distinct policy framework and system. Employee performance management is not applicable to departmental, component or team performance management or assessment but is linked to individual performance, thus promoting individual growth and development, as well as impacting on career-pathing.
• Challenges
The department faces a challenge of receiving high numbers of applications for advertised posts which delay the filling thereof. However, there is also a lack/shortage of applications from Persons with Disabilities (PWDs) to be appointed on the Developmental Programmes.
PART D: HUMAN RESOURCES
2019 - 2020KZN TRANSPORT ANNUAL REPORT 113
• Future Human Resource Plans
The department will continue to focus on the challenge of filling critical, vacant and funded posts in the new performance year, as well as to achieve the employee equity targets. It will also focus on improving the time taken to fill vacant and funded posts. The filling of vacant, critical and funded posts remains a priority.
The Department will continue to advertise within the disability units at the institutions of higher learning in order to target Persons with Disabilities. The Department will also advertise Developmental Programmes on the Thisability Newspaper targeting People with Disabilities.
HUMAN RESOURCES OVERSIGHT STATISTICS
The department must provide the following key information on its human resources, and all the financial amounts must agree with the amounts disclosed in the annual financial statements. It must also provide reasons for any variances.
3.1 Personnel Related Expenditure
The following tables summarise the final, audited personnel related expenditure by programme and by salary bands. In particular, it provides an indication of the amount spent on personnel, salaries, overtime, homeowner’s allowances and medical aid.
Table 3.1.1 Personnel expenditure by programme for the period 1 April 2019 and 31 March 2020
Programme Total expenditure (R’000)
Personnel expenditure (R’000)
Training expenditure
(R’000)
Professional and Special Services expenditure (R’000)
Personnel expenditure as a % of total expenditure
Average personnel cost per employee (R’000)
Administration 441 451.00 155 620.00 0.00 0.00 35.30 252.00
Community Based Programme
29 593.00 10 104.00 0.00 0.00 34.10 14.00
Transport Infrastructure
6 139 406.00 653 401.00 0.00 0.00 10.60 14.00
Transport Operations
1 812 121.00 39 239.00 0.00 0.00 2.20 74.00
Transport Regulation
926 398.00 645 362.00 0.00 0.00 69.70 398.00
Z=Total as on Financial Systems (BAS)
9 348 969.00 1 503 726.00 0.00 0.00 151.90 752.00
PART D: HUMAN RESOURCES
2019 - 2020 KZN TRANSPORT ANNUAL REPORT114
Table 3.1.2 Personnel costs by salary band for the period 1 April 2019 and 31 March 2020
Salary band Personnel expenditure
(R’000)
% of total personnel cost
No. of employees Average personnel cost per employee (R’000)
Lower skilled (Levels 1-2) 64 092.00 3.30 333 192 468.00
Skilled (Levels 3-5) 374 522.00 19.40 1 348 277 835.00
Highly skilled production (Levels 6-8) 660 975.00 34.20 1 368 483 169.00
Highly skilled supervision (Levels 9-12) 230 426.00 11.90 284 811 359.00
Senior management (Levels 13-16) 64 092.00 3.30 333 192 468.00
Contract (Levels 1-2) 0.00 0.00 0 0.00
Contract (Levels 13-16) 3 386.00 0.20 2 1 693 000.00
Contract (Levels 3-5) 48 427.00 2.50 38 1 274 395.00
Contract (Levels 6-8) 71 183.00 3.70 174 1 935 475.00
Contract (Levels 9-12) 21 230.00 1.10 42 1 935 475.00
Contract Other 17 407.00 0.90 371 46 919.00
Periodical Remunerations 16 199.00 0.80 846 19 125.00
Abnormal Appointment 376 739.00 19.50 43 848 1 935 475.00
TOTAL 1 898 226.00 98.10 48 716 1 935 475.00
Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the period 1 April 2019 and 31 March 2020
Programme Salaries Overtime Home Owners Allowance
Medical Aid
Amount (R’000
Salaries as a % of personnel costs
Amount (R’000)
Overtime as a % of personnel costs
Amount (R’000)
HOA as a % of personnel costs
Amount (R’000)
Medical aid as a % of personnel costs
2. Road infrastructure
1 627.00 78.10 0.00 0.00 0.00 0.00 105.00 5.00
5. Community based prog
2 005.00 76.40 0.00 0.00 66.00 2.50 137.00 5.20
Administration 133 435.00 81.00 2 024.00 1.20 4 036.00 2.50 7 775.00 4.70
Community Based Programme
13 781.00 83.10 0.00 0.00 177.00 1.10 486.00 2.90
Transport Infrastructure
1 627.00 78.10 0.00 0.00 0.00 0.00 105.00 5.00
Transport Operations
46 721.00 83.70 48.00 0.10 853.00 1.50 1 944.00 3.50
Transport Regulation
427 694.00 65.40 96 517.00 14.80 21 917.00 3.40 46 618.00
7.10
TOTAL 1 491 980.00 396.90 120 147.00 6.20 54 753.00 2.80 93 731.00
4.80
PART D: HUMAN RESOURCES
2019 - 2020KZN TRANSPORT ANNUAL REPORT 115
Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the period 1 April 2019 and 31 March 2020
Salary band Salaries Overtime Home Owners Allowance Medical Aid
Amount (R’000
Salaries as a % of personnel costs
Amount (R’000)
Overtime as a % of personnel costs
Amount (R’000)
HOA as a % of personnel costs
Amount (R’000)
Medical aid as a % of personnel costs
Lower skilled (Levels 1-2)
41 858.00 64.90 1 839.00 2.90 6 358.00 9.90 6 662.00 10.30
Skilled
(Levels 3-5)
267 549.00 71.10 13 385.00 3.60 22 817.00 6.10 32 444.00 8.60
Highly skilled production (Levels 6-8)
443 783.00 66.20 92 256.00 13.80 21 993.00 3.30 45 237.00 6.70
Highly skilled supervision (Levels 9-12)
186 561.00 76.30 10 080.00 4.10 3 313.00 1.40 8 567.00 3.50
Senior management (Levels 13-16)
43 100.00 84.30 0.00 0.00 283.00 0.60 808.00 1.60
Contract
(Levels 1-2)
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Contract
(Levels 3-5)
13 302.00 97.00 108.00 0.80 39.00 0.30 56.00 0.40
Contract
(Levels 6-8)
68 999.00 94.30 1 945.00 2.70 17.00 0.00 53.00 0.10
Contract
(Levels 9-12)
20 548.00 91.20 17.00 0.10 0.00 0.00 105.00 0.50
Contract
(Levels 13-16)
3 009.00 82.50 0.00 0.00 0.00 0.00 42.00 1.20
Contract Other
16 889.00 96.90 516.00 3.00 0.00 0.00 0.00 0.00
Periodical Re-munerations
13 294.00 80.20 0.00 0.00 0.00 0.00 0.00 0.00
Abnormal Appointment
376 720.00 98.80 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL 1 495 611.00 77.30 120 147.00 6.20 54 820.00 2.80 93 974.00 4.90
PART D: HUMAN RESOURCES
2019 - 2020 KZN TRANSPORT ANNUAL REPORT116
EMPLOYMENT AND VACANCIES
The tables in this section summarise the position with regard to employment and vacancies. They also summarise the number of posts in the establishment, the number of employees, the vacancy rate, and whether there are any staff that are “additional to the establishment” or ATE. This information is presented in terms of three key variables: programme, salary band and critical occupations (see definition in notes below).
Departments have identified critical occupations that need to be monitored. In terms of current regulations, it is possible to create a post on the establishment that can be occupied by more than one employee. Therefore, the vacancy rate reflects the percentage of posts that are not filled.
Table 3.2.1 Employment and vacancies by programme as on 31 March 2020
Programme Number of posts on approved establishment
Number of posts filled
Vacancy Rate Number of employees additional to the establishment
Administration 737 608 17.50 130
Community Based Programme 23 15 34.80 0
Transport Infrastructure 2 448 1 935 21.00 279
Transport Operations 98 77 21.40 5
Transport Regulation 1 604 1 380 14.00 2
TOTAL 4 920 4 022 18.30 416
Table 3.2.2 Employment and vacancies by salary band as on 31 March 2020
Salary band Number of posts on approved establishment
Number of posts filled Vacancy Rate Number of employees additional to the establishment
Lower skilled (Levels 1-2), Permanent
401 333 17.00 0
Skilled (Levels 3-5), Permanent
1 805 1 348 25.30 0
Highly skilled production (Levels 6-8), Permanent
1 657 1 368 17.40 0
Highly skilled supervision (Levels 9-12), Permanent
358 284 20.70 0
Senior management (Levels 13-16), Permanent
48 38 20.80 0
Contract Other Permanent 371 371 0.00 173
Contract (Levels 3-5), Permanent
62 62 0.00 33
Contract (Levels 6-8), Permanent
174 174 0.00 170
Contract (Levels 9-12), Permanent
42 42 0.00 40
Contract (Levels 13-16), Permanent
2 2 0.00 0
TOTAL 4 920 4 022 18.30 416
PART D: HUMAN RESOURCES
2019 - 2020KZN TRANSPORT ANNUAL REPORT 117
Table 3.2.3 Employment and vacancies by critical occupations as on 31 March 2020
Critical occupation Number of posts on approved establishment
Number of posts filled
Vacancy Rate Number of employees additional to the establishment
Administrative related, permanent 190 144 24.20 3
All artisans in the building metal machinery etc., permanent
213 158 25.80 68
Artisan project and related superintendents, permanent
25 18 28.00 0
Auxiliary and related workers, permanent
33 28 15.20 0
Building and other property caretakers, permanent
11 4 63.60 0
Bus and heavy vehicle drivers, permanent
9 3 66.70 1
Cartographers and surveyors, permanent 1 1 0.00 1
Cartographic surveying and related technicians, permanent
9 9 0.00 1
Civil engineering technicians, permanent 294 260 11.60 197
Cleaners in offices workshops hospitals etc., permanent
122 100 18.00 0
Client inform clerks(switchb recept inform clerks), permanent
29 23 20.70 0
Communication and information related, permanent
5 2 60.00 0
Engineering sciences related, permanent 20 15 25.00 0
Engineers and related professionals, permanent
69 58 15.90 4
Finance and economics related, permanent
5 4 20.00 0
Financial and related professionals, permanent
14 9 35.70 1
Financial clerks and credit controllers, permanent
18 8 55.60 0
Food services aids and waiters, permanent
19 18 5.30 0
Head of department/chief executive officer, permanent
1 1 0.00 0
Household and laundry workers, permanent
1 1 0.00 0
Human resources & organisat developm & relate prof, permanent
27 23 14.80 0
Human resources clerks, permanent 91 72 20.90 0
Human resources related, permanent 15 13 13.30 0
Language practitioners interpreters & other commun, permanent
9 8 11.10 0
Legal related, permanent 4 3 25.00 0
PART D: HUMAN RESOURCES
2019 - 2020 KZN TRANSPORT ANNUAL REPORT118
Librarians and related professionals, permanent
1 1 0.00 0
Library mail and related clerks, permanent
2 2 0.00 0
Light vehicle drivers, permanent 9 3 66.70 0
Logistical support personnel, permanent 1 1 0.00 0
Mechanical engineering thechnicians, permanent
1 1 0.00 1
Messengers porters and deliverers, permanent
82 50 39.00 0
Motor vehicle drivers, permanent 397 300 24.40 0
Other administrat & related clerks and organisers, permanent
1 277 1 096 14.20 136
Other administrative policy and related officers, permanent
243 197 18.90 1
Other information technology personnel., permanent
2 1 50.00 0
Other occupations, permanent 1 1 0.00 0
Printing planners and production controllers, permanent
1 1 0.00 0
Regulatory inspectors, permanent 777 688 11.50 0
Road superintendents, permanent 13 11 15.40 0
Road trade workers., permanent 154 126 18.20 0
Road workers, permanent 502 396 21.10 0
Safety health and quality inspectors, permanent
2 2 0.00 0
Secretaries & other keyboard operating clerks, permanent
38 29 23.70 1
Security guards, permanent 33 23 30.30 0
Security officers, permanent 5 5 0.00 0
Senior managers, permanent 46 36 21.70 0
Trade labourers, permanent 99 69 30.30 1
TOTAL 4 920 4 022 18.30 416
NOTES
The CORE classification, as prescribed by the DPSA, should be used for completion of this table.
Critical occupations are defined as occupations or sub-categories within an occupation in which there is a scarcity of qualified and experienced persons currently or anticipated in the future, either because such skilled persons are not available or they are available but do not meet the applicable employment criteria; for which persons require advanced knowledge in a specified subject area or science or learning field and such knowledge is acquired by a prolonged course or study and/or specialised instruction; where the inherent nature of the occupation requires consistent exercise of discretion and is predominantly intellectual in nature; and in respect of which a department experiences a high degree of difficulty to recruit or retain the services of employees.
PART D: HUMAN RESOURCES
2019 - 2020KZN TRANSPORT ANNUAL REPORT 119
FILLING OF SMS POSTS
The tables in this section provide information on employment and vacancies as it relates to members of the Senior Management Service by salary level. It also provides information on advertising and filling of SMS posts, reasons for not complying with prescribed timeframes and disciplinary steps taken.
Table 3.3.1 SMS post information as on 31 March 2020
SMS Level Total number of funded SMS posts
Total number of SMS posts filled
% of SMS posts filled
Total number of SMS posts vacant
% of SMS posts vacant
Head of Department 1 1 100% 0 0
Salary Level 15 4 4 100% 0 0
Salary Level 14 10 8 80% 2 20
Salary Level 13 34 26 76% 8 24
Total 49 39 79.59% 10 20.41%
Table 3.3.2 SMS post information as on 30 September 2020
SMS Level Total number of funded SMS posts
Total number of SMS posts filled
% of SMS posts filled
Total number of SMS posts vacant
% of SMS posts vacant
Head of Department 1 1 100% 0 0
Salary Level 15 4 4 100% 0 0
Salary Level 14 10 8 80% 2 20
Salary Level 13 34 26 76% 8 24
Total 49 39 79.59% 10 20.41%
Table 3.3.3 Advertising and filling of SMS posts for the period 1 April 2019 and 31 March 2020
SMS Level Advertising Filling of Posts
Number of vacancies per level advertised in 6 months of becoming vacant
Number of vacancies per level filled in 6 months of becoming vacant
Number of vacancies per level not filled in 6 months but filled in 12 months
Director-General/ Head of Department
0 0 0
Salary Level 16 0 0 0
Salary Level 15 0 0 0
Salary Level 14 0 0 0
Salary Level 13 0 0 0
Total 0 0 0
PART D: HUMAN RESOURCES
2019 - 2020 KZN TRANSPORT ANNUAL REPORT120
Table 3.3.4 Reasons for not having complied with the filling of funded vacant SMS posts i.e. those advertised within 6 months and filled within 12 months after becoming vacant for the period 1 April 2019 and 31 March 2020
Reasons for vacancies not advertised within six monthsChief Director: Road Safety and Traffic Management: The post had to be re-advertised due to no suitable candidate found during the selection process.
Director: Legal Services: The post had to be re-advertised due to a Directive from the Office of the Premier to re-advertise posts.
Reasons for vacancies not filled within twelve monthsAs per above
Notes
In terms of the Public Service Regulations Chapter 1, Part VII C.1A.3, departments must indicate good cause or reason for not having complied with the filling of SMS posts within the prescribed timeframes.
Table 3.3.5 Disciplinary steps taken for not complying with the prescribed timeframes for filling SMS posts within 12 months for the period 1 April 2019 and 31 March 2020
Disciplinary steps takenNone
Notes
In terms of the Public Service Regulations Chapter 1, Part VII C.1A.2, departments must indicate good cause or reason for not having complied with the filling of SMS posts within the prescribed timeframes. In the event of non-compliance with this regulation, the relevant executive authority or head of department must take appropriate disciplinary steps in terms of section 16A(1) or (2) of the Public Service Act.
JOB EVALUATION
Within a nationally determined framework, executing authorities may evaluate or re-evaluate any job in his or her organisation. In terms of the regulations, all vacancies on salary levels 9 and higher must be evaluated before they are filled. The following table summarises the number of jobs that were evaluated during the year under review. The table also provides statistics on the number of posts that were upgraded or downgraded.
Table 3.4.1 Job Evaluation by Salary band for the period 1 April 2019 and 31 March 2020
Salary band Number of posts on approved establishment
Number of Jobs Evaluated
% of posts evaluated by salary bands
Posts Upgraded Posts downgradedNumber % of posts
evaluatedNumber % of posts
evaluated
01 Lower Skilled (Levels 1-2) 401.00 0 0 0 0 0 0
02 Skilled (Levels 3-5) 1 805.00 0 0 2 100.00 0 0
03 Highly Skilled Production (Levels 6-8)
1 657.00 0 0 0 0 0 0
04 Highly Skilled Supervision (Levels 9-12)
358.00 0 0 0 0 0 0
05 Senior Management Service Band A
33.00 0 0 0 0 0 0
06 Senior Management Service Band B
10.00 0 0 0 0 0 0
PART D: HUMAN RESOURCES
2019 - 2020KZN TRANSPORT ANNUAL REPORT 121
Salary band Number of posts on approved establishment
Number of Jobs Evaluated
% of posts evaluated by salary bands
Posts Upgraded Posts downgradedNumber % of posts
evaluatedNumber % of posts
evaluated
07 Senior Management Service Band C
4.00 0 0 0 0 0 0
08 Senior Management Service Band D
1.00 0 0 0 0 0 0
09 Other 371.00 0 0 0 0 0 0
11 Contract (Levels 3-5) 62.00 0 0 0 0 0 0
12 Contract (Levels 6-8) 174.00 0 0 0 0 0 0
13 Contract (Levels 9-12) 42.00 0 0 0 0 0 0
14 Contract Band A 1.00 0 0 0 0 0 0
17 Contract Band D 1.00 0 0 0 0 0 0
TOTAL 4 920.00 0 0 2 100 0 0
The following table provides a summary of the number of employees whose positions were upgraded due to their post being upgraded. The number of employees might differ from the number of posts upgraded since not all employees are automatically absorbed into the new posts and some of the posts upgraded could also be vacant.
Table 3.4.2 Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2019 and 31 March 2020
Gender African Asian Coloured White TotalFemale 0 0 0 0 0
Male 0 0 0 0 0
Total 0 0 0 0 0
Employees with a disability 0
The following table summarises the number of cases where remuneration bands exceeded the grade determined by job evaluation. Reasons for the deviation are provided in each case.
Table 3.4.3 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2019 and 31 March 2020
Occupation Number of employees
Job evaluation level Remuneration level Reason for deviation
- 0 - - -
Total number of employees whose salaries exceeded the level determined by job evaluation 0Percentage of total employed 0
The following table summarises the beneficiaries of the above in terms of race, gender, and disability.
PART D: HUMAN RESOURCES
2019 - 2020 KZN TRANSPORT ANNUAL REPORT122
Table 3.4.4 Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2019 and 31 March 2020
Gender African Asian Coloured White Total- 0 0 0 0 0- 0 0 0 0 0
Employees with a disability 0
NOTES
If there were no cases where the salary levels were higher than those determined by job evaluation, keep the heading and replace the table with the following:
Total number of Employees whose salaries exceeded the grades determine by job evaluation 0
EMPLOYMENT CHANGES
This section provides information on changes in employment over the financial year. Turnover rates provide an indication of trends in the employment profile of the department. The following tables provide a summary of turnover rates by salary band and critical occupations (see definition in notes below).
Table 3.5.1 Annual turnover rates by salary band for the period 1 April 2019 and 31 March 2020
Salary band Number of employees at beginning of period-April 2015
Appointments and transfers into the department
Terminations and transfers out of the department
Turnover rate
01 Lower Skilled (Levels 1-2) Permanent 337 1 3 0.90
02 Skilled (Levels 3-5) Permanent 1 414 7 72 5.10
03 Highly Skilled Production (Levels 6-8) Permanent 1 416 20 69 4.90
04 Highly Skilled Supervision (Levels 9-12) Permanent 292 1 10 3.40
05 Senior Management Service Band A Permanent 24 1 0 0.00
06 Senior Management Service Band B Permanent 8 1 0 0.00
07 Senior Management Service Band C Permanent 4 0 0 0.00
08 Senior Management Service Band D Permanent 1 1 1 100.00
09 Other Permanent 224 309 135 60.30
10 Contract (Levels 1-2) Permanent 0 0 0 0
11 Contract (Levels 3-5) Permanent 37 39 11 29.70
12 Contract (Levels 6-8) Permanent 185 9 22 11.90
13 Contract (Levels 9-12) Permanent 23 19 2 8.70
14 Contract Band A Permanent 1 3 3 300.00
17 Contract Band D Permanent 1 0 0 0.00
TOTAL 3 967 411 328.00 8.30
PART D: HUMAN RESOURCES
2019 - 2020KZN TRANSPORT ANNUAL REPORT 123
Table 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2019 and 31 March 2020
Critical occupation Number of employees at beginning of period-April 2015
Appointments and transfers into the department
Terminations and transfers out of the department
Turnover rate
ADMINISTRATIVE RELATED Permanent 147 4.00 6 4.10
ALL ARTISANS IN THE BUILDING METAL MACHINERY ETC. Permanent
97 66.00 5 5.20
ARTISAN PROJECT AND RELATED SUPERINTENDENTS Permanent
18 0 0 0
AUXILIARY AND RELATED WORKERS Permanent 31 0 3 9.70
BUILDING AND OTHER PROPERTY CARETAKERS Permanent
5 0 1.00 20.00
BUS AND HEAVY VEHICLE DRIVERS Permanent 3 0 0.00 0.00
CARTOGRAPHERS AND SURVEYORS Permanent 1 1 1.00 100.00
CARTOGRAPHIC SURVEYING AND RELATED TECHNICIANS Permanent
6 4 1.00 16.70
CIVIL ENGINEERING TECHNICIANS Permanent 252 40 32.00 12.70
CLEANERS IN OFFICES WORKSHOPS HOSPITALS ETC. Permanent
105 0 5.00 4.80
CLIENT INFORM CLERKS(SWITCHB RECEPT INFORM CLERKS) Permanent
25 0 2.00 8.00
COMMUNICATION AND INFORMATION RELATED Permanent
4 0 2.00 50.00
ENGINEERING SCIENCES RELATED Permanent 15 0 0.00 0.00
ENGINEERS AND RELATED PROFESSIONALS Permanent
55 4 1.00 1.80
FINANCE AND ECONOMICS RELATED Permanent 4 0 0.00 0.00
FINANCIAL AND RELATED PROFESSIONALS Permanent
10 0 1.00 10.00
FINANCIAL CLERKS AND CREDIT CONTROLLERS Permanent
8 0 0.00 0.00
FOOD SERVICES AIDS AND WAITERS Permanent 17 1 0.00 0.00
HEAD OF DEPARTMENT/CHIEF EXECUTIVE OFFICER Permanent
1 0 0.00 0.00
HUMAN RESOURCES & ORGANISAT DEVELOPM & RELATE PROF Permanent
21 2 0.00 0.00
HUMAN RESOURCES CLERKS Permanent 75 2 4.00 5.30
HUMAN RESOURCES RELATED Permanent 13 0 0.00 0.00
LANGUAGE PRACTITIONERS INTERPRETERS & OTHER COMMUN Permanent
8 0 0.00 0.00
LEGAL RELATED Permanent 3 0 1.00 33.30
LIBRARIANS AND RELATED PROFESSIONALS Permanent
1 0 0.00 0.00
LIBRARY MAIL AND RELATED CLERKS Permanent 2 0 0.00 0.00
LIGHT VEHICLE DRIVERS Permanent 3 0 0.00 0.00
LOGISTICAL SUPPORT PERSONNEL Permanent 1 0 0.00 0.00
MECHANICAL ENGINEERING THECHNICIANS Permanent
1 0 0.00 0.00
MESSENGERS PORTERS AND DELIVERERS Permanent
54 0 4.00 7.40
MOTOR VEHICLE DRIVERS Permanent 309 0 9.00 2.90
OTHER ADMINISTRAT & RELATED CLERKS AND ORGANISERS Permanent
1 016 274 165.00 16.20
OTHER ADMINISTRATIVE POLICY AND RELATED OFFICERS Permanent
204 4 10.00 4.90
PART D: HUMAN RESOURCES
2019 - 2020 KZN TRANSPORT ANNUAL REPORT124
OTHER INFORMATION TECHNOLOGY PERSONNEL. Permanent
1 0 0.00 0.00
OTHER OCCUPATIONS Permanent 1 1 1.00 100.00
PRINTING PLANNERS AND PRODUCTION CONTROLLERS Permanent
1 0 0.00 0.00
REGULATORY INSPECTORS Permanent 710 0 23.00 3.20
ROAD SUPERINTENDENTS Permanent 12 0 1.00 8.30
ROAD TRADE WORKERS. Permanent 135 0 9.00 6.70
ROAD WORKERS Permanent 425 0 31.00 7.30
SAFETY HEALTH AND QUALITY INSPECTORS Permanent
2 0 0.00 0.00
SECRETARIES & OTHER KEYBOARD OPERATING CLERKS Permanent
29 1 2.00 6.90
SECURITY GUARDS Permanent 25 0 2.00 8.00
SECURITY OFFICERS Permanent 5 0 0.00 0.00
SENIOR MANAGERS Permanent 35 5 3.00 8.60
TRADE LABOURERS Permanent 71 1 3.00 4.20
TOTAL 3 967 411 328.00 8.30
NOTES
The CORE classification, as prescribed by the DPSA, should be used for completion of this table.
Critical occupations are defined as occupations or sub-categories within an occupation in which there is a scarcity of qualified and experienced persons currently or anticipated in the future, either because such skilled persons are not available or they are available but do not meet the applicable employment criteria; or which persons require advanced knowledge in a specified subject area or science or learning field and such knowledge is acquired by a prolonged course or study and/or specialised instruction; where the inherent nature of the occupation requires consistent exercise of discretion and is predominantly intellectual in nature; and in respect of which a department experiences a high degree of difficulty to recruit or retain the services of employees.
The table below identifies the major reasons why staff left the department.
Table 3.5.3 Reasons why staff left the department for the period 1 April 2019 and 31 March 2020
Termination Type Number % of Total Resignations
Death, Permanent 27 8.20
Resignation, Permanent 82 25.00
Expiry of contract, Permanent 148 45.10
Discharged due to ill health, Permanent 2 0.60
Dismissal-misconduct, Permanent 3 0.90
Retirement, Permanent 66 20.10
TOTAL 328 100.00
Total number of employees who left as a % of total employment (4066)
8
PART D: HUMAN RESOURCES
2019 - 2020KZN TRANSPORT ANNUAL REPORT 125
Table 3.5.4 Promotions by critical occupation for the period 1 April 2019 and 31 March 2020
Occupation Employment at Beginning of Period (April 2016)
Promotions to another Salary Level
Salary Level Promotions as a % of Employment
Progressions to another Notch within Salary Level
Notch progressions as a % of Employment
Administrative related 147 2 1.40 74 50.30
All artisans in the building metal machinery etc. 97 1 1.00 36 37.10
Artisan project and related superintendents 18 0 0 10 55.60
Auxiliary and related workers 31 0 0 21 67.70
Building and other property caretakers 5 0 0 1 20.
Bus and heavy vehicle drivers 3 0 0 1 33.30
Cartographers and surveyors 1 0 0 0 0
Cartographic surveying and related technicians 6 0 0 1 16.70
Civil engineering technicians 252 0 0 84 33.30
Cleaners in offices workshops hospitals etc. 105 0 0 57 54.30
Client inform clerks(switchb recept inform clerks) 25 0 0 8 32.00
Communication and information related 4 0 0 3 75
Engineering sciences related 15 0 0 2 13.30
Engineers and related professionals 55 0 0 35 63.60
Finance and economics related 4 0 0 2 50
Financial and related professionals 10 0 0 5 50
Financial clerks and credit controllers 8 0 0 6 75
Food services aids and waiters 17 0 0 8 47.10
Head of department/chief executive officer 1 0 0 0 0
Human resources & organisat developm & relate prof 21 1 4.80 12 57.10
Human resources clerks 75 0 0 60 80
Human resources related 13 0 0 8 61.50
Language practitioners interpreters & other commun 8 0 0 6 75
Legal related 3 0 0 1 33.30
Librarians and related professionals 1 0 0 1 100
Library mail and related clerks 2 0 0 1 50
Light vehicle drivers 3 0 0 2 66.70
Logistical support personnel 1 0 0 0 0
Mechanical engineering thechnicians 1 0 0 0 0
Messengers porters and deliverers 54 0 0 38 70.40
Motor vehicle drivers 309 0 0 255 82.50
Other administrat & related clerks and organisers 1 016 0 0 698 68.70
Other administrative policy and related officers 204 2 1 108 52.90
Other information technology personnel. 1 0 0 0 0
Other occupations 1 0 0 0 0
Printing planners and production controllers 1 0 0 0 0
Regulatory inspectors 710 1 0.10 553 77.90
Road superintendents 12 0 0 8 66.70
Road trade workers. 135 0 0 114 84.40
Road workers 425 0 0 374 88
Safety health and quality inspectors 2 0 0 1 50
Secretaries & other keyboard operating clerks 29 0 0 12 41.40
Security guards 25 0 0 21 84
Security officers 5 0 0 1 20
PART D: HUMAN RESOURCES
2019 - 2020 KZN TRANSPORT ANNUAL REPORT126
Senior managers 35 0 0 12 34.30
Trade labourers 71 0 0 61 85.90
TOTAL 3 967 7.00 0.20 2 701 68.10
Table 3.5.5 Promotions by salary band for the period 1 April 2019 and 31 March 2020
Salary Band Employees 1 April 2015
Promotions to another salary level
Salary bands promotions as a % of employees by salary level
Progressions to another notch within a salary level
Notch progression as a % of
employees by salary bands
01 Lower Skilled (Levels 1-2), Permanent 337 0 0 26 77.70
02 Skilled (Levels 3-5), Permanent 1 414 0 0 1 166 82.50
03 Highly Skilled Production (Levels 6-8), Permanent 1 416 5 0.40 898 63.40
04 Highly Skilled Supervision (Levels 9-12), Permanent 292 2 0.70 162 55.50
05 Senior Management (Levels 13-16), Permanent 37
0 0 13 35.10
09 Other, Permanent 224 0 0 140 62.50
10 Contract (Levels 1-2), Permanent 0 0 0 0 0
11 Contract (Levels 3-5), Permanent 37 0 0 9 24.30
12 Contract (Levels 6-8), Permanent 185 0 0 43 23.20
13 Contract (Levels 9-12), Permanent 23 0 0 8 34.80
14 Contract (Levels 13-16), Permanent 2 0 0 0 0.00
TOTAL 3 967.00 7 0.20 2 701 68.10
EMPLOYMENT EQUITY Table 3.6.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March 2020
Occupational categoryMale Female
TotalAfrican Coloured Indian White African Coloured Indian White
01 - SENIOR OFFICIALS AND MANAGERS 15 0 1 3 18 0 1 0 38
02 - PROFESSIONALS 53 1 9 12 49 2 5 7 138
03 - TECHNICIANS AND ASSOCIATE PROFESSIONALS 247 13 35 23 261 7 33. 23 642
04 - CLERKS 226 8 36 9 786 24 91 50 1 230
05 - SERVICE SHOP AND MARKET SALES WORKERS 323 25 87 32 201 10 26 12 716
07 - CRAFT AND RELATED TRADE WORKERS 186 3 20 16 89 0 0 0 314
08 - PLANT AND MACHINE OPERATORS AND ASSEMBLERS 276 0 0 2 28 0 0 0 306
09 - LABOURERS AND RELATED WORKERS 354 1 2 2 277 1 1 0 638
UNKNOWN
PART D: HUMAN RESOURCES
2019 - 2020KZN TRANSPORT ANNUAL REPORT 127
Occupational categoryMale Female
TotalAfrican Coloured Indian White African Coloured Indian White
TOTAL 1680 51 190 1709 44 157 1 910 92 4 022
Table 3.6.2 Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2020
Occupational bandMale Female
TotalAfrican Coloured Indian White African Coloured Indian White
01 Top Management, Permanent 2 0 0 1 2 0 0 0 5
02 Senior Management, Permanent
12 0.00 1.00 2 17 0.00 1.00 0 33
03 Professionally qualified and experienced specialists and mid-management, Permanent
105 10.00 27.00 29 90 2.00 14.00 7 284
04 Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent
490 30.00 122.00 59 482 25.00 78.00 82 1 368
05 Semi-skilled and discretionary decision making, Permanent
668 10.00 31.00 7 555 17.00 57.00 3 1 348
06 Unskilled and defined decision making, Permanent
104
0
1.00 0 228 0 0 0 333
07 Not Available, Permanent 124
0
0.00 0 247 0 0 0 37
08 Contract (Top Management), Permanent
1
0
0.00 0 0. 0 0 0 1
09 Contract (Senior Management), Permanent
1
0
0.00 0 0 0 0 0 1
10 Contract (Professionally Qualified), Permanent
26
0
5.00 0 6.00 0 5 0 42
11 Contract (Skilled Technical), Permanent
10
0
3.00 1 62.00 0 1 0 174
12 Contract (Semi-Skilled), Permanent
40 1 0.00 0 20.00 0 1 0 62
TOTAL 1 680 51 190 99 1 709 44 157 92 4 022
Table 3.6.3 Recruitment for the period 1 April 2019 and 31 March 2020
Occupational bandMale Female
TotalAfrican Coloured Indian White African Coloured Indian White01 Top Management, Permanent
1 0 0 0 0 0 0 0 1
02 senior management, permanent
1 0.00 0 0 1 0 0 0 2
03 Professionally qualified and experienced specialists and mid-management, Permanent
0 0 0 0 1 0 0 0 1
PART D: HUMAN RESOURCES
2019 - 2020 KZN TRANSPORT ANNUAL REPORT128
04 Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent
11 1.00 0 0 8 0 0 0 20
05 Semi-skilled and discretionary decision making, Permanent
3 0 0 0 4 0 0 0 7
06 Unskilled and defined decision making, Permanent
1 0 0 0 0 0 0 0 1
07 Not Available, Permanent
100 0 0 0 209 0 0 0 309
10 Contract (Professionally qualified), Permanent
3 0 0 0 0 0 0 0 3
11 Contract (Skilled technical), Permanent
13 0 2 0 3 0 1. 0 19
12 Contract (Semi-skilled), Permanent
7 0 0 0 2 0 0 0 9
TOTAL 29 0 1 0 7 0 2 0 39Employees with disabilities
0 0 0 0 0 0 0 0 0
Table 3.6.4 Promotions for the period 1 April 2019 and 31 March 2020
Occupational bandMale Female
TotalAfrican Coloured Indian White African Coloured Indian White
01 Top Management, Permanent 0 0 0 0 0 0 0 0 0
02 Senior Management, Permanent
3 0 1 0 9 0 0 0 13
03 Professionally qualified and experienced specialists and mid-management, Permanent
65 3 14 13 57 1 7 4 164
04 Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent
359 18 76 26 339 14 40 31 903
05 Semi-skilled and discretionary decision making, Permanent
588 10 25 6 473 14 46 4 1 166
06 Unskilled and defined decision making, Permanent
93 0 0 0 169 0 0 0 262
09 Contract (Senior Management), Permanent
0 0 0 0 0 0 0 0 0
10 Contract (Professionally qualified), Permanent
5 0 2.00 0 1 0 0 0 8
11 Contract (Skilled technical), Permanent
31 0 1.00 0 11 0 0 0 43
12 Contract (Semi-skilled), Permanent
2 0 0.00 0 6 0 1 0 9
TOTAL 1 205 31 119 0 1 146 29 94 39 2 708Employees with disabilities 15 0 1 1 14 0 14 1 34
PART D: HUMAN RESOURCES
2019 - 2020KZN TRANSPORT ANNUAL REPORT 129
Table 3.6.5 Terminations for the period 1 April 2019 and 31 March 2020
Occupational bandMale Female
TotalAfrican Coloured Indian White African Coloured Indian White
01 Top Management, Permanent 1. 0 0 0 0 0 0 0
1
02 Senior Management, Permanent
0 0 0 0 0 0 0 0 0
03 Professionally qualified and experienced specialists and mid-management, Permanent
3 0 1.00 0 6 0 0 0 10
04 Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent
26 2.00 1.00 3.00 20 1 3 13 69
05 Semi-skilled and discretionary decision making, Permanent
50 0 0 0 20 0 1.00 1.00 72
06 Unskilled and defined decision making, Permanent
0 0 0 0 2 0 0 0 3
07 Not Available, Permanent 24 0 0 0 111 0 0 0 135
09 Contract (Senior Management), Permanent
3 0 0 0 0 0 0 0 0
10 Contract (Professionally qualified), Permanent
1 0 0 0 1 0 0 0 3
11 Contract (Skilled technical), Permanent
18 0 0 0 4.00 0 0 0 2
12 Contract (Semi-skilled), Permanent
6 0 2 0 2.00 0 1.00 0 22
TOTAL 132.00 2 4 3 166 1 6 14 11Employees with disabilities 0 0 0 0 0 0 0 0 0
Table 3.6.6 Disciplinary action for the period 1 April 2019 and 31 March 2020
Disciplinary actionMale Female
TotalAfrican Coloured Indian White African Coloured Indian White
Final Written Warning 5 0 1 2 3 0 1 0 12
Dismissal 1 0 0 0 1 0 0 0 2
Case Withdrawn 2 0 0 0 0 0 0 0 2
GRAND TOTAL 8 0 1 2 4 0 1 0 16
Employees with disabilities
0 0 0 0 0 0 0 0 0
Table 3.6.7 Skills development for the period 1 April 2019 and 31 March 2020
Occupational categoryMale Female
TotalAfrican Coloured Indian White African Coloured Indian White
Legislators, Senior Officials and Managers
1 0 0 0 1 0 0 1 3
Professionals 5 0 3 0 18 1 0 6 33
Technicians and Associate Professionals
109 0 8 12 121 2 3 5 260
Clerks 47 3 20 4 173 8 24 13 292
PART D: HUMAN RESOURCES
2019 - 2020 KZN TRANSPORT ANNUAL REPORT130
Occupational categoryMale Female
TotalAfrican Coloured Indian White African Coloured Indian White
Service and Sales Workers 116 10 33 2 85 8 12 3 269
Craft and related trades workers 17 1 5 5 5 0 0 0 33
Plant and Machine Operators and Assemblers
106 0 0 1 13 0 0 0 120
Elementary Occupations 149 0 0 3 135 0 0 0 287
TOTAL 550 14 69 27 551 19 39 28 1297
Employees with disabilities 1 0 1 0 0 0 0 2 4
SIGNING OF PERFORMANCE AGREEMENTS BY SMS MEMBERS
All members of the SMS must conclude and sign performance agreements within specific timeframes. Information regarding the signing of performance agreements by SMS members, the reasons for not complying within the prescribed timeframes and disciplinary steps taken is presented here.
Table 3.7.1 Signing of Performance Agreements by SMS members as on 31 May 2020 (Due date is 31 July 2020 - Extension granted by the MPSA due to the COVID-19 Pandemic)
SMS Level
Total number
of funded SMS posts
Total number of SMS
members
Total number of signed
performance agreements
Signed performance agreements as % of total number of SMS
members
Head of Department 1 0 0 0
Salary Level 15 4 4 0 0
Salary Level 14 10 8 1 12.50
Salary Level 13 34 26 11 42
Total 49 39 12 30
NOTES
In the event of a National or Provincial election occurring within the first three months of a financial year all members of the SMS must conclude and sign their performance agreements for that financial year within three months following the month in which the elections took place. For example if elections took place in April, the reporting date in the heading of the table above should change to 31 July 20ZZ.
Table 3.7.2 Reasons for not having concluded Performance agreements for all SMS members as on 31 May 2020 (Due date is 31 July 2020 - Extension granted by the MPSA due to the COVID-19 Pandemic)
Reasons NONE
NOTES
The reporting date in the heading of this table should be aligned with that of Table 3.7.1.
Table 3.7.3 Disciplinary steps taken against SMS members for not having concluded Performance agreements as on 31 May 2020 (31 July 2020 - Extension granted by the MPSA due to the COVID-19 Pandemic)
Reasons NONE
PART D: HUMAN RESOURCES
2019 - 2020KZN TRANSPORT ANNUAL REPORT 131
NOTES
The reporting date in the heading of this table should be aligned with that of Table 3.7.1.
Performance Rewards
To encourage good performance, the department has granted the following performance rewards during the year under review. The information is presented in terms of race, gender, disability, salary bands and critical occupations (see definition in notes below).
Table 3.8.1 Performance Rewards by race, gender and disability for the period 1 April 2019 and 31 March 2020
Race and Gender
Beneficiary Profile Cost
Number of beneficiaries
Number of employees
% of total
within group
Cost (R’000)
Average cost per
employee
African, Female 451 1 691 26.70 8 665.93 19 173
African, Male 452 1 660 27.20 8 114.56 17 953
Asian, Female 71 153 46.40 1 647.76 23 208
Asian, Male 76 188 40.40 2 063.98 27 158
Coloured, Female 18 44 40.90 336.01 18 667
Coloured, Male 18 51 35.30 664.01 36 890
White, Female 43 90 47.80 974.51 22 663
White, Male 35 95 36.80 1 260.23 36 007
Employees with a disability 14 50 28 421.76 30 126
TOTAL 1 178.99 4 022 29.30 24 148.75 20 483.00
Table 3.8.2 Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2019 and 31 March 2020
Salary bandBeneficiary Profile Cost
Number of beneficiaries
Number of employees
% of total within salary bands
Total Cost (R’000)
Average cost per employee
01 Lower Skilled (Levels 1-2) 120 333 36.00 978.06 8 151
02 Skilled (Levels 3-5) 479 1 348 35.50 6 209.13 12 963
03 Highly Skilled Production
(Levels 6-8)
413 1 368 30.30 9 973.94 24 092
04 Highly Skilled Supervision
(Levels 9-12)
129 284 45.40 5 713.80 44 293
09 Other 0 371 0 0 0
11 Contract (Levels 3-5) 4 62 6.50 57.90 14 475
12 Contract (Levels 6-8) 25 174 14.40 529.92 21 197
13 Contract (Levels 9-12) 1 42 2.40 28.91 28 912
TOTAL 1 171 3 982 29.40 23 491.67 20 044
PART D: HUMAN RESOURCES
2019 - 2020 KZN TRANSPORT ANNUAL REPORT132
Table 3.8.3 Performance Rewards by critical occupation for the period 1 April 2019 and 31 March 2020
Critical occupation
Beneficiary Profile Cost
Number of beneficiaries
Number of employees
% of total within occupation
Total Cost (R’000)
Average cost per employee
Financial clerks and credit controllers 6 8 75 122.53 20 422
Human resources clerks 27 72 37 400.22 14 823
Security officers 0 5 0 0 0
Household and laundry workers 0 1 0 0 0
All artisans in the building metal machinery etc.
17 158 10.80 332.21 19 542
Human resources & organisat developm & relate prof
6 23 26.10 147.39 24 565
Messengers porters and deliverers 20 50 40 239.69 11 984
Road trade workers. 38 126 30.20 588.29 15 481
Safety health and quality inspectors 0 2 0 0 0
Finance and economics related 3 4 75 114.50 38 166
Logistical support personnel 1 1 100 25.71 25 707
Other administrat & related clerks and organisers
273 1 096 24.90 4 224.08 15 473
Auxiliary and related workers 14 28 50 201.38 14 385
Other occupations 0 1 0 0 0
Legal related 2 3 66.70 49.64 24 819
Financial and related professionals 5 9 55.60 264.86 52 973
Building and other property caretakers 4 4 100 52.20 13 051
Administrative related 73 144 50.70 3 690.57 50 556
Communication and information related
3 2 150 73.82 24 606
Secretaries & other keyboard operating clerks
19 29 65.50 338.43 17 812
Cleaners in offices workshops hospitals etc.
41 100 41 385.66 9 406
Library mail and related clerks 1 2 50 18.48 18 484
Human resources related 4 13 30.80 135.27 33 817
Head of department/chief executive officer
0 1 0 0 0
Trade labourers 23 69 33.30 213.68 9 290
Road superintendents 3 11 27.30 71.05 23 682
Language practitioners interpreters & other commun
5 8 62.50 117.67 23 535
Regulatory inspectors 165 688 24.10 4 755.53 28 649
Cartographic surveying and related technicians
0 9 0 0 0
Civil engineering technicians 46 260 17.70 1 135.20 24 678
Road workers 129 396 32.60 1 182.77 9 169
Other administrative policy and related officers
70 197 35.50 1 843.18 26 331
Artisan project and related superintendents
3 18 16.70 99.87 33 290
Bus and heavy vehicle drivers 0 3 0 0 0
Senior managers 6 36 16.70 577.07 96 179
Client inform clerks(switchb recept inform clerks)
15 23 65.20 365.39 24 359
Printing planners and production controllers
0 1 0 0 0
PART D: HUMAN RESOURCES
2019 - 2020KZN TRANSPORT ANNUAL REPORT 133
Engineers and related professionals 20 58 34.50 677.76 33 888
Cartographers and surveyors 0 1 0 0 0
Other information technology personnel.
1 1 100 31.77 31 774
Light vehicle drivers 1 3 33.30 12.24 12 238
Engineering sciences related 4 15 26.70 176.72 44 181
Motor vehicle drivers 113 300 37.70 1 313.42 11 623
Security guards 2 23 8.70 24.02 12 009
Food services aids and waiters 14 18 77.80 120.79 8 628
Mechanical engineering thechnicians 0 1 0 0.00 0
Librarians and related professionals 1 1 100 25.71 25 707TOTAL 1 178 4 022 29.30 24 148.75 20 483
NOTES
The CORE classification, as prescribed by the DPSA, should be used for completion of this table.
Critical occupations are defined as occupations or sub-categories within an occupation in which there is a scarcity of qualified and experienced persons currently or anticipated in the future, either because such skilled persons are not available or they are available but do not meet the applicable employment criteria; for which persons require advanced knowledge in a specified subject area or science or learning field and such knowledge is acquired by a prolonged course or study and/or specialised instruction; where the inherent nature of the occupation requires consistent exercise of discretion and is predominantly intellectual in nature; and in respect of which a department experiences a high degree of difficulty to recruit or retain the services of employees.
Table 3.8.4 Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2019 and 31 March 2020
Salary band
Beneficiary Profile Cost
Number of beneficiaries
Number of employees
% of total within salary bands
Total Cost (R’000)
Average cost per employee
% of SMS Wage Bill
Band A 6 26 23.10 559.54 93 256.90 1.70Band B 1 8 12.50 97.54 97 536.80 0.80Band C 0 4 0 0 0 0Band D 0 2 0 0 0 0TOTAL 7 40 17.50 657.08 93 868.30 1.20
PART D: HUMAN RESOURCES
2019 - 2020 KZN TRANSPORT ANNUAL REPORT134
FOREIGN WORKERS
The tables below summarise the employment of foreign nationals in the department in terms of salary band and major occupation.
Table 3.9.1 Foreign workers by salary band for the period 1 April 2019 and 31 March 2020
Salary band 01 April 2019 31 March 2020 ChangeNumber % of total Number % of total Number % Change
Highly skilled production
(Levels 6-8) 1 100 1 100 0 0Highly skilled supervision
(Levels 9-12) 0 0 0 0 0 0Other 0 0 0 0 0 0Skilled (Levels 3-5) 0 0 0 0 0 0TOTAL 1 100 1 100 0 0
Table 3.9.2 Foreign workers by major occupation for the period 1 April 2019 and 31 March 2020
Major Occupation 01 April 2019 31 March 2020 ChangeNumber % of total Number % of total Number % Change
Administrative office workers 0 0 0 0 0 0Other occupations 0 0 0 0 0 0Professionals and managers 1 1 1 100 0 0TOTAL 1.00 100 1 100 0 0
LEAVE UTILISATION
The Public Service Commission identified the need for careful monitoring of sick leave within the public service. The following tables provide an indication of the use of sick leave and disability leave. In both cases, the estimated cost of the leave is also provided.
Table 3.10.1 Sick leave for the period 1 January 2019 to 31 December 2019
Salary band Total days% Days with
Medical certification
Number of Employees using sick
leave
% of total employees using
sick leave
Average days per employee
Estimated Cost (R’000)
Contract (Levels 1-2) 0 0 0 0 0 0Contract (Levels 13-16) 263 86.30 32 1.10 8 1 227Contract (Levels 3-5) 153 69.90 32 1.10 5 129Contract (Levels 6-8) 524 76.70 90 3 6 763Contract (Levels 9-12) 79 88.60 13 0.40 6 199Contract Other 513 48.70 148 5 3 188Highly skilled production (Levels 6-8) 12 864 76.90 1 206 40.60 11 17 866Highly skilled supervision (Levels 9-12) 1 717 80.80 218 7.30 8 4 715Lower skilled (Levels 1-2) 2 097 84.80 240 8.10 9 1 193
PART D: HUMAN RESOURCES
2019 - 2020KZN TRANSPORT ANNUAL REPORT 135
Salary band Total days% Days with
Medical certification
Number of Employees using sick
leave
% of total employees using
sick leave
Average days per employee
Estimated Cost (R’000)
Senior management (Levels 13-16) 263 86.30 32 1.10 8 1 227Skilled (Levels 3-5) 9 612 81.50 992 33.40 10 8 748TOTAL 27 822 78.90 2 971 100 9 35 029
Table 3.10.2 Disability leave (temporary and permanent) for the period 1 January 2019 to 31 December 2019
Salary band Total days
% Days with Medical
certification
Number of Employees
using disability
leave
% of total employees
using disability
leave
Average days per employee
Estimated Cost (R’000)
Contract (Levels 6-8) 29 100 3 6 10 43Highly skilled production (Levels 6-8) 1 020 100 23 46 44 1 590Highly skilled supervision (Levels 9-12) 284 100 2 4 142 721Lower skilled (Levels 1-2) 260 100 5 10 52 153Skilled (Levels 3-5) 1 073 100 17 34 63 960TOTAL 2 666 100 50 100 53 3 468
The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service.
Table 3.10.3 Annual Leave for the period 1 January 2019 to 31 December 2019
Salary band Total days taken
Number of Employees
using annual leave
Average per
employee
Contract (Levels 1-2) 0 0 0Contract (Levels 13-16) 0 0 0Contract (Levels 3-5) 869 15 59Contract (Levels 6-8) 3 361 19 179Contract (Levels 9-12) 384 12 31Contract Other 2 300 9 251Highly skilled production (Levels 6-8) 35 587 25 1 409Highly skilled supervision (Levels 9-12) 7 032 25 287Lower skilled (Levels 1-2) 6 879 21 335Senior management (Levels 13-16) 833 23 36Skilled (Levels 3-5) 33 654 24 1 415TOTAL 90 899 23 4 002
PART D: HUMAN RESOURCES
2019 - 2020 KZN TRANSPORT ANNUAL REPORT136
Table 3.10.4 Capped leave for the period 1 January 2019 to 31 December 2019
Salary bandTotal days of capped leave
taken
Number of Employees using
capped leave
Average number of
days taken per employee
Average capped leave per
employee as at 31 December 2019
Highly skilled production (Levels 6-8) 157 5 55 157Highly skilled supervision (Levels 9-12) 43 6 71 43Lower skilled (Levels 1-2) 0 0 0 0Senior management (Levels 13-16) 7 4 111 7Skilled (Levels 3-5) 33 3 59 33TOTAL 240 5 59 240
The following table summarise payments made to employees as a result of leave that was not taken.
Table 3.10.5 Leave payouts for the period 1 April 2019 and 31 March 2020
Reason Total amount (R’000)
Number of employees
Average per employee (R’000)
Annual - discounting with resignation (work days) 986.00 48 20 542Annual - gratuity: death/retirement/medical retirement (work 1 886.00 95 19 853Capped - gratuity: death/retirement/medical retirement (work 5 857.00 84 69 726TOTAL 8 728.00
HIV/AIDS & HEALTH PROMOTION PROGRAMMES
Table 3.11.1 Steps taken to reduce the risk of occupational exposure
Units/categories of employees identified to be at high risk of contracting HIV & related diseases (if any)
Key steps taken to reduce the risk
Nil N/A
Table 3.11.2 Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and provide the required information)
Question Yes No Details, if yes
1. Has the department designated a member of the SMS to implement the provisions contained in Regulation 55 of the Public Service Regulations, 2016? If so, provide her/his name and position.
X Ms MC Zwane, Chief Director: Human Resource Management.
2. Does the department have a dedicated unit or has it designated specific staff members to promote the health and well-being of your employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose.
X The Department has a dedicated unit called Employee Health & Wellness Programme with two (2) employees and the annual budget is R4m.
3. Has the department introduced an Employee Assistance or Health Promotion Programme for your employees? If so, indicate the key elements/services of this Programme.
X Professional counselling and assessment, debriefing, crisis intervention, referrals to respective registered medical practitioners, and implementation of prevention programmes and consultations as and when deems fit.
4. Has the department established (a) committee(s) as contemplated in Regulation 55 (6) (d) of the Public Service Regulations, 2016? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent.
X The committee is chaired by Ms MC Zwane (CD: HRM), other appointed members are Ms TM Zondi and Ms KH Mlakuhlwa from Head Office EHW unit; Ms S Hlela, Ms A Ndlovu, Ms G Hlabisa, and Ms S Afrika who are representing all employees from salary levels 1-14 under Empangeni, Ladysmith, Pietermaritzburg and Durban Regional Offices.
PART D: HUMAN RESOURCES
2019 - 2020KZN TRANSPORT ANNUAL REPORT 137
5. Has the department reviewed its employment policies and practices to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so reviewed.
X The Department has an approved HIV/AIDS and TB Management policy that is regarded as an overarching directive that directly addresses all issues of human rights and discrimination in the workplace as aligned to one of the prescribed EHW Pillars.
6. Has the department introduced measures to protect HIV-positive employees or those perceived to be HIV-positive from discrimination? If so, list the key elements of these measures.
X The EHW unit provides continuous support to employees who are directly or indirectly discriminated in general. Furthermore, the unit conducts ongoing awareness campaigns throughout the Department in terms of prevention strategies and encouraging employees to know their status. Health screenings are conducted continuously.
7. Does the department encourage its employees to undergo Voluntary Counselling and Testing? If so, list the results that you have you achieved.
X There has been a noticeable increase from 197 to 220 number employees who participated in testing for HIV during the reporting period due to partnerships established with GEMS and other local NGOs in terms of utilising their services in this regard . Furthermore, there has been an increase on the number of employees who are assisted and treated by an in-house registered medical practitioner as compared to the previous financial year.
8. Has the department developed measures/indicators to monitor & evaluate the impact of its health promotion programme? If so, list these measures/indicators.
X - the number of employees accessing Departmental Wellness clinics.
- the number of referrals by respective supervisors.
- the reduction of employees accessing incapacity leave.
LABOUR RELATIONSTable 3.12.1 Collective agreements for the period 1 April 2019 and 31 March 2020
Subject matter Date
Nil N/A
The following table summarises the outcome of disciplinary hearings conducted within the department for the year under review.
Table 3.12.2 Misconduct and disciplinary hearings finalised for the period 1 April 2019 and 31 March 2020
Outcomes of disciplinary hearings Number % of total
Final Written Warning 12 75%Dismissal 2 16.7Case Withdrawn 2 16.7TOTAL 16 100%
Table 3.12.3 Types of misconduct addressed at disciplinary hearings for the period 1 April 2019 and 31 March 2020
Type of misconduct Number % of total
Fraud/Theft 16 48.48%Social Grant Misconduct 0 0Low Income Housing 0 0Insubordination 2 6.06%Misuse of State property 1 3.03%Under the influence of alcohol 0 0Absenteeism 1 3.03%
PART D: HUMAN RESOURCES
2019 - 2020 KZN TRANSPORT ANNUAL REPORT138
Assault 2 6.06%Other 11 33.33TOTAL 33 100%
Table 3.12.4 Grievances logged for the period 1 April 2019 and 31 March 2020
Grievances Number % of TotalNumber of grievances resolved 133 83.13%Number of grievances not resolved 27 16.87%Total number of grievances lodged 160 100%
Table 3.12.5 Disputes logged with Councils for the period 1 April 2019 and 31 March 2020
Disputes Number % of Total
Number of disputes upheld 11 35.48%Number of disputes dismissed 2 6.45%Total number of disputes lodged 31
Table 3.12.6 Strike actions for the period 1 April 2019 and 31 March 2020
Total number of persons working days lost 0Total costs working days lost 0Amount recovered as a result of no work no pay (R’000) 0
Table 3.12.7 Precautionary suspensions for the period 1 April 2019 and 31 March 2020
Number of people suspended 3Number of people whose suspension exceeded 30 days 3Average number of days suspended +120 daysCost of suspension (R’000) R729 026
PART D: HUMAN RESOURCES
2019 - 2020KZN TRANSPORT ANNUAL REPORT 139
SKILLS DEVELOPMENTThis section highlights the efforts of the department with regard to skills development.
Table 3.13.1 Training needs identified for the period 1 April 2019 and 31 March 2020
Occupational category GenderNumber of employees as at 1 April
2019
Training needs identified at start of the reporting period
LearnershipsSkills
Programmes & other short
courses
Other forms of training
Total
Legislators, senior officials and managers
Female 18 1 43 0 44Male 17 0 27 0 27
ProfessionalsFemale 62 4 22 0 26
Male 63 4 15 0 19
Technicians and associate professionalsFemale 309 0 60 0 60
Male 301 0 57 0 57
Clerks Female 809 0 23 0 23
Male 198 0 36 0 36
Service and sales workersFemale 263 0 35 0 35
Male 509 0 31 0 31
Skilled agriculture and fishery workersFemale 0 0 0 0 0
Male 0 0 0 0 0
Craft and related trades workersFemale 63 0 15 0 15
Male 208 0 20 0 20
Plant and machine operators and assemblers
Female 28 0 18 0 18Male 304 0 16 0 16
Elementary occupationsFemale 297 0 27 0 27
Male 432 0 30 0 30
Sub TotalFemale 1849 5 445 0 450
Male 2032 4 432 0 436
Total 3881 0 877 0 886
Table 3.13.2 Training provided for the period 1 April 2019 and 31 March 2020
Occupational category GenderNumber of employees
as at 1 April 2019
Training provided within the reporting period
LearnershipsSkills
Programmes & other short
courses
Other forms of training
Total
Legislators, senior officials and managers
Female 18 1 6 0 7Male 17 0 3 0 3
Professionals Female 62 4 6 0 10Male 63 4 4 0 8
Technicians and associate professionals
Female 309 0 12 0 12Male 301 0 8 0 8
Clerks Female 809 0 15 0 15Male 198 0 10 0 10
Service and sales workers Female 263 0 10 0 10Male 509 0 11 0 11
PART D: HUMAN RESOURCES
2019 - 2020 KZN TRANSPORT ANNUAL REPORT140
Skilled agriculture and fishery workers
Female 0 0 0 0 0Male 0 0 0 0 0
Craft and related trades workers Female 63 0 2 0 2Male 208 0 2 0 2
Plant and machine operators and assemblers
Female 28 0 2 0 2Male 304 0 2 0 2
Elementary occupations Female 297 0 4 0 4Male 432 0 4 0 4
Sub Total Female 1849 8 57 0 57Male 2032 1 44 0 44
Total 3881 9 101 0 101
INJURY ON DUTYThe following tables provide basic information on injury on duty.
Table 3.14.1 Injury on duty for the period 1 April 2019 and 31 March 2020
Nature of injury on duty Number % of total
Required basic medical attention only 19 100%
Temporary Total Disablement 0 0%Permanent Disablement 0 0%Fatal 0 0%Total 19 100%
UTILISATION OF CONSULTANTSThe following tables relates information on the utilisation of consultants in the department. In terms of the Public Service Regulations “consultant’ means a natural or juristic person or a partnership who or which provides in terms of a specific contract on an ad hoc basis any of the following professional services to a department against remuneration received from any source:
• The rendering of expert advice;
• The drafting of proposals for the execution of specific tasks; and
• The execution of a specific task which is of a technical or intellectual nature but excludes an employee of a department.
Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2019 and 31 March 2020
Project title Total number of consultants that worked on project
Duration
(work days)
Contract value in
RandNONE - - -
PART D: HUMAN RESOURCES
2019 - 2020KZN TRANSPORT ANNUAL REPORT 141
Table 3.15.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2019 and 31 March 2020
Project title Percentage ownership by HDI groups
Percentage management by HDI groups
Number of consultants from HDI groups that work on the project
NONE - - -
Table 3.15.3 Report on consultant appointments using Donor funds for the period 1 April 2019 and 31 March 2020
Project title Total Number of consultants that worked on project
Duration
(Work days)Donor and contract
value in Rand
NONE
Total number of projects Total individual consultantsTotal duration
Work daysTotal contract value in
Rand
NONE
Table 3.15.4 Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2019 and 31 March 2020
Project title Percentage ownership by HDI groups
Percentage management by HDI groups
Number of consultants from HDI groups that work on the
projectNONE - - -
SEVERANCE PACKAGESTable 3.16.1 Granting of employee-initiated severance packages for the period 1 April 2019 and 31 March 2020
Salary bandNumber of
applications received
Number of applications referred to the MPSA
Number of applications supported by MPSA
Number of packages approved by department
NONE 0 0 0 0
PART D: HUMAN RESOURCES
2019 - 2020 KZN TRANSPORT ANNUAL REPORT142
ANNUAL REPORT2019/20VOTE 12
FINANCIAL INFORMATION
PART E:
2019 - 2020KZN TRANSPORT ANNUAL REPORT 145
ANNUAL FINANCIAL STATEMENTS
TRANSPORT
for the year ended 31 March 2020
CONTACT INFORMATION:
Name of Chief Financial Officer: Mr. W. Evans
Contact telephone number: 033 - 3558008
Contact e-mail address: [email protected]
Name of contact at provincial treasury: Mr. Santanu Moodley
Contact telephone number: 033 - 8794200
Contact e-mail address: [email protected]
Name of relevant Auditor: Mr. J. Nkosi
Contact telephone number: 033 - 264 7447
Contact e-mail address: [email protected]
Name of contact at National Treasury: Star Ngozi
Contact telephone number: 012 315-5763
Contact e-mail address: [email protected]
PART E:
2019 - 2020 KZN TRANSPORT ANNUAL REPORT146
AFS TABLE OF CONTENTPART E:
VOTE 12FOR THE YEAR ENDED 31 MARCH 2019
TABLE OF CONTENTS PAGE
Report of the Auditor-General 147
Report of the Accounting Officer 156
Appropriation Statement 165
Notes to the Appropriation Statement 197
Statement of Financial Performance 199
Statement of Financial Position 200
Statement of Changes in Net Assets 201
Cash Flow Statement 202
Accounting Policies 203
Notes to the Annual Financial Statements 209
Annexures 273
2019 - 2020KZN TRANSPORT ANNUAL REPORT 147
REPORT OF THE AUDITOR-GENERALPART E:
1
Report of the auditor-general to the KwaZulu-Natal Provincial Legislature on vote no. 12: Department of Transport
Report on the audit of the financial statements
Qualified opinion
1. I have audited the financial statements of the Department of Transport set out on pages to , which comprise the appropriation statement, statement of financial position as at 31 March 2020, statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, as well as the notes to financial statements, including a summary of significant accounting policies.
2. In my opinion, except for the effects of the matters described in the basis for qualified opinion section of this auditor’s report, the financial statements present fairly, in all material respects, the financial position of the Department of Transport as at 31 March 2020, and its financial performance and cash flows for the year then ended in accordance with the Modified Cash Standard (MCS) prescribed by National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and the Division of Revenue Act of South Africa, 2019 (Act No.16 of 2019) (Dora).
Basis for qualified opinion
Irregular expenditure
3. The department did not record the full extent of irregular expenditure in the notes to the financial statements, as required by section 40(3)(b)(i) of the PFMA. This was due to expenditure incurred in contravention of the supply chain management legislation not being detected, recorded and appropriately disclosed in the financial statements. Consequently, I was unable to determine the full extent of the irregular expenditure stated at R17,84 billion in note 31 to the financial statements, as it was impractical to do so.
Accrued departmental revenue
4. I was unable to obtain sufficient appropriate audit evidence that accrued departmental revenue for the current year had been properly accounted for, due to the status of the accounting records. I was unable to confirm the accrued departmental revenue by alternative means. Consequently, I was unable to determine whether any adjustment was necessary to accrued departmental revenue stated at R65,41 million as disclosed in note 30 to the financial statements.
Context for the opinion
5. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of this auditor’s report.
165 to287
2019 - 2020 KZN TRANSPORT ANNUAL REPORT148
REPORT OF THE AUDITOR-GENERALPART E:
2
6. I am independent of the department in accordance with sections 290 and 291 of the Code of Ethics for Professional Accountants and parts 1 and 3 of the International Code of Ethics for Professional Accountants (including International Independence Standards) of the International Ethics Standards Board for Accountants (IESBA codes) as well as the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA codes.
7. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my qualified opinion.
Emphasis of matters
8. I draw attention to the matters below. My opinion is not modified in respect of these matters.
Immovable tangible capital assets
9. As disclosed in note 41 to the financial statements, completed roads amounting to R59,6 billion (2018/19: R57,6 billion) were removed from the financial statements. The department adopted a phased in approach relating to disclosure of completed roads and related infrastructure in accordance with paragraph 4.4: Modified Cash Standard - Accounting and reporting for immovable assets.
Underspending of budget
10. As disclosed in the appropriation statement, the department materially underspent the budget for transport infrastructure by R1,64 billion due to delays in infrastructure projects.
Subsequent events
11. I draw attention to note 38 in the financial statements, which deals with subsequent events and specifically the possible effects of the future implications of Covid-19 on the department’s future prospects, performance and cash flows. Management have also described how they plan to deal with these events and circumstances.
Other matter
12. I draw attention to the matter below. My opinion is not modified in respect of this matter.
Unaudited supplementary schedules
13. The supplementary information set out on pages to does not form part of the financial statements and is presented as additional information. I have not audited these schedules and, accordingly, I do not express an opinion on them.
Responsibilities of the accounting officer for the financial statements
14. The accounting officer is responsible for the preparation and fair presentation of the financial statements in accordance with MCS and the requirements of the PFMA and Dora, and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
273 to 287
2019 - 2020KZN TRANSPORT ANNUAL REPORT 149
REPORT OF THE AUDITOR-GENERALPART E:
3
15. In preparing the financial statements, the accounting officer is responsible for assessing the department’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the appropriate governance structure either intends to liquidate the department or to cease operations, or has no realistic alternative but to do so.
Auditor-general’s responsibilities for the audit of the financial statements
16. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
17. A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report.
Report on the audit of the annual performance report
Introduction and scope
18. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof, I have a responsibility to report material findings on the reported performance information against predetermined objectives for the selected programme presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.
19. My procedures address usefulness and reliability of the reported performance information, which must be based on the approved performance planning documents of the department. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures do not examine whether the actions taken by the department enabled service delivery. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters.
20. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for programme 2: transport infrastructure presented on pages to in the annual performance report of the department for the year ended 31 March 2020.
21. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and
46 to 47
2019 - 2020 KZN TRANSPORT ANNUAL REPORT150
REPORT OF THE AUDITOR-GENERALPART E:
4
related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.
22. I did not raise any material findings on the usefulness and reliability of the reported performance information for the selected programme.
Other matters
23. I draw attention to the matters below.
Achievement of planned targets
24. The annual performance report on pages xx to xx sets out information on the achievement of planned targets for the year and explanations are also provided for the under and over-achievement of a significant number of targets.
Adjustment of material misstatements
25. I identified material misstatements in the annual performance report submitted for auditing. These material misstatements were on the reported performance information for transport infrastructure programme. As management subsequently corrected the misstatements, I did not raise any material findings on the usefulness and reliability of the reported performance information.
Report on the audit of compliance with legislation
Introduction and scope
26. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material findings on the department’s compliance with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.
27. The material findings on compliance with specific matters in key legislation are as follows:
Annual financial statements
28. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework and supported by full and proper records, as required by section 40(1)(a) and (b) of the PFMA. Material misstatements of immovable tangible capital assets, irregular expenditure and accrued departmental revenue identified by the auditors in the submitted financial statements were corrected and the supporting records were provided subsequently, but the uncorrected material misstatements of irregular expenditure and accrued departmental revenue and supporting records that could not be provided resulted in the financial statements receiving a qualified opinion.
Consequence management
44 to 45
2019 - 2020KZN TRANSPORT ANNUAL REPORT 151
REPORT OF THE AUDITOR-GENERALPART E:
5
29. I was unable to obtain sufficient appropriate audit evidence that disciplinary steps were taken against officials who had incurred irregular, fruitless and wasteful expenditure as required by section 38(1)(h)(iii) of the PFMA because some investigations were not performed.
30. Disciplinary steps were not taken against some of the officials who had permitted irregular expenditure, as required by section 38(1)(h)(iii) of the PFMA.
Expenditure management
31. Effective and appropriate steps were not taken to prevent irregular expenditure, as required by section 38(1)(c)(ii) of the PFMA and treasury regulation 9.1.1. As reported in the basis for qualified opinion the full extent of the irregular expenditure could not be quantified. The majority of the irregular expenditure disclosed in the financial statements was caused by poor contract management.
Procurement and contract management
32. Some of the contracts and quotations were awarded to bidders based on pre-qualification criteria that were not stipulated and differed from those stipulated in the original invitation for bidding and quotations, in contravention of the 2017 preferential procurement regulation 4(1) and 4(2). Similar non-compliance was also reported in the prior year.
32. Some of the bid documentation for procurement of commodities designated for local content and production, did not stipulate the minimum threshold for local production and content as required by the 2017 preferential procurement regulation 8(2).
Other information
33. The accounting officer is responsible for the other information. The other information comprises the information included in the annual report. The other information does not include the financial statements, the auditor’s report and the selected programme presented in the annual performance report that has been specifically reported in this auditor’s report.
34. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.
35. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programme presented in the annual performance report, or my knowledge obtained in the audit or otherwise appears to be materially misstated.
36. If, based on the work I have performed, I conclude that there is a material misstatement in this other information, I am required to report that fact. I have nothing to report in this regard.
Internal control deficiencies
37. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance on it. The matters reported below are limited to the
2019 - 2020 KZN TRANSPORT ANNUAL REPORT152
REPORT OF THE AUDITOR-GENERALPART E:
6
significant internal control deficiencies that resulted in the basis for the qualified opinion and the findings on compliance with legislation included in this report.
38. Monitoring of financial information and compliance with key legislation, was not effective to ensure that the objectives of transparent, credible and reliable reporting were achieved.
39. Management did not adequately maintain and review underlying schedules to support financial statement disclosures. Non-compliance could have been prevented had management regularly monitored adherence with legislation.
40. The risk assessment processes and reviews were not adequate to ensure that risks relating to financial reporting, including non-compliance with key legislation were mitigated and responded to in good time by management.
Other reports
41. I draw attention to the following engagements conducted that had, or could have, an impact on the matters reported in the department’s financial statements, reported performance information, compliance with applicable legislation and other related matters. These reports did not form part of my opinion on the financial statements or my findings on the reported performance information or compliance with legislation.
42. The shared internal audit unit for departments in the province performed 22 investigations relating to various procurement irregularities and fraudulent payments made to suppliers and employees. Nine investigations were completed and 13 were still in progress at year-end. The accounting officer commenced with legal and disciplinary action against officials in three of the finalised investigations. Implementation of recommendations in one of the completed cases is in progress and implementation of recommendations had not commenced in five of the completed cases.
43. In terms of Proclamation Number R14 of 2018, issued in Government Gazette 41650 of 25 May 2018, the Special Investigating Unit is investigating various irregularities at the department relating to the sale of properties and rental collections. This investigation was completed as at 31 March 2019. The accounting officer has commenced with implementing the recommendations of the report.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 153
REPORT OF THE AUDITOR-GENERALPART E:
7
44. In terms of Proclamation Number R36 of 2018, issued in Government Gazette 42101 of 14 December 2018, the Special Investigating Unit is investigating various irregularities at the department relating to the procurement of consultancy services. This investigation was still in progress at the date of this report.
Pietermaritzburg
13 November 2020
2019 - 2020 KZN TRANSPORT ANNUAL REPORT154
REPORT OF THE AUDITOR-GENERALPART E:
8
Annexure – Auditor-general’s responsibility for the audit
1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements, and the procedures performed on reported performance information for selected programme and on the department’s compliance with respect to the selected subject matters.
Financial statements 2. In addition to my responsibility for the audit of the financial statements as described in this
auditor’s report, I also:
• identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control
• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the department’s internal control
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the accounting officer
• conclude on the appropriateness of the accounting officer’s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Department of Transport’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of this auditor’s report. However, future events or conditions may cause a department to cease continuing as a going concern
• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation
Communication with those charged with governance 3. I communicate with the accounting officer regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
4. I also confirm to the accounting officer that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and, where applicable, actions taken to eliminate threats or safeguards applied.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT156
REPORT BY THE ACCOUNTING OFFICER1. OVERVIEW OF THE OPERATIONS OF THE DEPARTMENT1.1 IMPORTANT POLICY DECISIONS AND STRATEGIC ISSUES FACING THE DEPARTMENT
There have been changes to existing policies, strategies and plans that have either impacted upon or supplemented our Departmental policies and plans. These are summarised below:
• Disaster Management Act, 2002: Regulations No 318 of 18 March 2020 and the various amendment regulations, which set out the response of the country to the declared state of disaster resulting from the Covid-19 pandemic.
The following are strategic issues facing the department:
• The department is still constrained by employee shortages which arose from the moratorium on the filling of posts that were imposed may years ago as well as Provincial Treasury Circular 11/5/8/1/12-16/17, dated 10 February 2016. This directive has resulted in the Department having to carefully prioritise posts which are critical to fill. The increased restrictions to this circular and additional processes in obtaining Treasury approval before filling posts, are having a negative impact on the Department and our ability to function optimally.
• The delay in the finalising of the Departmental structure continues to exacerbate this situation which has also had a huge negative impact on service delivery.
• The department aims to continue to ensure that it meets its employment equity targets in the workplace. To this end, the department again commits itself to achieving representation of designated population groups in management and women in management positions (50%). The department will also strive to increase the number of Youth and People Living with Disabilities in our employment.
• The Department continued to adhere to the expanded cost-cutting measures, as reissued by Provincial Treasury in 2019/20, in conjunction with National Treasury Instruction 01 of 2013/14: Cost contained measures.
• The National and Provincial Treasury’s reduction of the Department’s budget has also impacted on our targeted delivery for construction and maintenance programmes. This has been exacerbated by a decreased allocation from the Provincial Roads Maintenance Grant (PRMG). Since the inception of the cost-cutting measures the cumulative budget cuts total R1.289 billion.
• During the 2018/19 Adjustments Estimates, the learner transport services function was shifted back to DOT altogether. The number of learners benefiting from the learner transport services is 47 747 from 320 schools. The increase in demand for the services placed tremendous pressures on the budget however the department received additional funding in that regard. The pressures were expected to continue into 2019/20 and as a result an original allocation of R218.201 million was received in 2019/20 Main Appropriation with an additional allocation of R130 million during the 2019/20 Adjusted Appropriation.
• The rising fuel costs have also impacted on the department and its operations. The claims from the bus operators are linked to an escalation clause that includes labour and fuel indices, among others. The increase in fuel prices led to the escalation leading to increased bus subsidies paid to bus operators. The allocation towards used for the provision of this service is from the Public Transport Operations Grant (PTOG). This is a Schedule 4 grant (supplementary grant) and, as such, the department had to absorb the resultant spending pressures in respect of its equitable share.
• The other major challenge that the department is constantly faced with is the increased demand for both construction and maintenance of the road network despite the disproportionate increase in funding. The department’s current Maintenance budget is significantly lower than the required allocation. The effect of this has seen the blacktop road condition deteriorate from 36% to 57% in the poor to very poor road category while the industry target is less than 10%.
• Action plans put in place to address the extensive irregular expenditure being incurred by the department have resulted in several service delivery challenges as the Supply Chain Management process have been strengthened and weakness in the contract management processes have been addressed. These challenges
2019 - 2020KZN TRANSPORT ANNUAL REPORT 157
REPORT BY THE ACCOUNTING OFFICERPART E:
include the suspension of the Vukuzakhe Emerging Contractor Programme which was found to be not aligned to the current procurement prescripts and resulted in most road maintenance contracts having to be restarted.
2. OVERVIEW OF THE FINANCIAL RESULTS OF THE DEPARTMENT2.1 DEPARTMENTAL RECEIPTS
Revenue Tariffs
The department adjusted its revenue tariff for the 2019/20 financial year by adding a minimum of the inflation rate (CPI) plus one percent to the 2018/19 tariff rate. These increases are approved by the department in consultation with the Provincial Treasury. The following services rendered by the department were increased at inflationary rate (CPI) plus one per cent for the 2019/20 financial year:
• Abnormal Loads Licences • Traffic Officer Diploma Course Fees • Examiner of Vehicles Course Fees • Examiner of Driving Licence Course • Dangerous Goods and Other Courses • Evaluation of Examiners • Dräger Training • Speed Timing Courses • Refresher Training iro Other Courses • Duplicate Registration Fee • Issue of Permits • Traffic Assistance • Traffic Warden Course • Exemptions: New Applications or Renewals • Copies of Accident Information
MOTOR VEHICLE LICENCES
The KwaZulu-Natal Department of Transport which is responsible for motor vehicle registration and licensing in terms of the current national and provincial road traffic legislation, collects motor vehicle licence fees through 82 Registering Authority offices, made up of 7 Provincial Offices, 41 Municipal Offices, and 34 Post Offices. Motor vehicle licence fees are calculated, country wide, on the tare weight of a vehicle and each MEC of the 9 provinces is mandated to administer vehicle registration and licence fees, inclusive of the increase thereof.
The variances between motor vehicle licences charged across all provinces in the various fee categories are significant and as such the province is losing revenue to neighbouring provinces due to cheaper rates as the fees have not yet been standardised. To avoid further losses the department as been implementing a conservative 4% tariff increase rate since the 2016/17 financial year to narrow the gap.
A task team comprising of representatives from Provincial Treasuries and National Treasury was formed to explore ways to standardise the tariffs for motor vehicle licences, as some provinces such as KZN charge higher rates than others.
ROAD & TRANSPORT LICENCES/FEES
Revenue collected for road and transport licences/fees includes learners’ and drivers’ licences applications, issuance, and renewal, conversion of drivers’ licences and the sale of personalised and specific number plates.
Some of the revenue collected is later retained by Agencies that provide licencing services on behalf of the department such as The Post Office, Provincial Municipalities as well as transactional fees paid over to the Road Traffic Management Corporation (RTMC).
The department has been experiencing a decline in the revenue collection against this category since the Learner and Driver License tariffs are only determined by the National Minister of Transport and these have remained the same for the past ten financial years. The other contributing factor to the decline is due to the economic climate as well as the high unemployment rate in the Province.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT158
REPORT BY THE ACCOUNTING OFFICERPART E:
REVENUE COLLECTION
The Department of Transport collects the largest revenue in the province. Below is a table that presents a summary of revenue collected in comparison to the budgeted amounts for both the 2019/20 financial year and the 2018/19 financial year.
Departmental Receipts
2019/2020 2018/2019
EstimateActual
Amount Collected
(Over) Under
CollectionEstimate
Actual Amount
Collected
(Over) Under
Collection
R’000 R’000 R’000 R’000 R’000 R’000
Tax Receipts
- Motor vehicle licenses 1 783 000 1 866 422 (83 422) 1 694 050 1 763 535 (59 485)Sale of goods and services other than capital assets 102 304 89 345 12 959 115 931 105 916 10 015
Fines, penalties and forfeits 42 957 24 687 18 270 57 733 40 353 17 379Interest, dividends and rent on land 187 103 84 272 69 203
Sale of capital assets 1 425 3 895 (2 470) 7 481 - 7 481Financial transactions in assets and liabilities 1 698 2 942 (1 244) 2 324 3 693 (1 369)
Total 1 931 571 1 987 394 (55 823) 1 877 791 1 913 566 (35 775)
The department collected R1.987 billion for the year against an annual budget of R1.932 billion. The department over-collected revenue at 102.9 per cent or by R55.822 million, as follows:
• Motor vehicle licences collected R1.866 billion against the annual budget of R1.783 billion. The over-collection of R83.422 million can be attributed to higher than anticipated applications for new and renewal of motor vehicle licences. This is dependent on the vehicle population registered in the province.
• Fines, penalties and forfeits collected R43.517 million which is higher than the annual budget of R42.957 million, related to fines received being slightly higher than anticipated. Revenue from this category is dependent on the ability and willingness of the public to pay their fines.
• Sale of capital assets reflects revenue from the sale of redundant vehicles and mechanical plant. The over-collection of R2.470 million was due to an increase in the number of vehicles auctioned.
• Transactions in financial assets and liabilities reflects a revenue collection of R2.942 million against a budget of R1.698 million. Revenue from this source mainly provides for recoveries from previous years’ expenditure, like over-paid suppliers, and staff debts such as salary over-payments, breached bursary contracts, etc. The over-collection was mainly as a result of staff debt collections being higher than anticipated.
The over-collection was offset to some extent by an under-collection in the following categories:
• Sale of goods and services other than capital assets under-collected at R70.514 million against the annual budget of R102.304 million. Revenue from this source relates to applications for learners’ and drivers’ licences, and commission on PERSAL deductions such as insurance premiums and garnishees, course fees related to the Traffic Inspectorate Training College, etc. The under-collection was mainly due to lower than anticipated applications for learners’ and drivers’ licences, as well as conversions of drivers’ licences.
• Interest, dividends and rent on land under-collected at R103 000 against the annual budget of R187 000 mainly because interest on staff debts was lower than anticipated.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 159
REPORT BY THE ACCOUNTING OFFICERPART E:
2.2 PROGRAMME EXPENDITURE
Below is a table that presents a summary of the actual expenditure in comparison to the adjusted appropriation for both the 2019/20 financial year and the 2018/19 financial year.
Programme Name 2019/2020 2018/2019Final
Budget Actual Variance FinalBudget Actual Variance
R’000 R’000 R’000 R’000 R’000 R’000
Administration 442 112 434 037 8 075 391 945 391 945 -Transport Infrastructure 7 752 686 6 115 422 1 637 264 7 339 038 7 102 727 236 311Transport Operations 1 812 290 1 812 121 169 1 891 303 1 891 303 -Transport Regulation 926 401 926 398 3 890 785 890 785 -Community Based Programme 36 056 29 594 6 462 52 606 52 606 -
Total 10 969 545 9 317 572 1 651 973 10 565 677 10 329 366 236 311
The department under-spent its 2019/20 budget by a net R1.652 billion. Most of the underspending was against Programme 2: Transport Infrastructure whilst only 0.4% of the underspending being against Programme 5: Community Based Program.
PROGRAMME 1: ADMINISTRATION
• Programme 1: Admin reflects a minor under-expenditure of R8.075 million against Goods and services and was due to the lower than budgeted costs for computers services.
Programme 2: Transport Infrastructure (R1.637 billion)
Programme 2: Transport Infrastructure shows net under-expenditure of R1.637 billion as follows:
• Slow progress with maintenance projects in respect of betterment and gravelling, as well as blading of gravel roads due to the suspension of the Vukuzakhe Emerging Contractor Development Programme. This programme was a vehicle used by the department to undertake maintenance projects and was designed to allow for the awarding of contracts to emerging contractors at a local level. However, the Auditor-General declared the programme Irregular resulting from the programme’s non-compliance with Preferential Procurement Policy Framework Act (PPPFA). The department then suspended the programme enable a review into the policy to align the programme to the Construction Industry Development Board (CIDB) and the National Contractor Developing Programme Framework and Guidelines and National Contractor Developing Programme Framework and Guidelines to make it compliant with the PPPFA.
• Challenges with access to quarries affecting maintenance projects that required gravel material like re-gravelling and patch gravelling, and this contributed to some of the under-spending. This is an issue throughout the province, but the areas mostly affected were the Ugu, Harry Gwala, and the uMgungundlovu District Municipalities. The department engaged with the House of Traditional Leaders and the Ingonyama Trust Board to address the challenges.
• Capital construction projects were significantly underspent as a result of poor performance by some contractors facing financial difficulties and thus not delivering on project milestones, change in the scope of work due to additional earthworks needed to be done as a result of changes in designs during construction, as well. The department has since terminated these poor performing contractors and re-advertised the tenders.
• SCM related challenges resulted in delays in the awarding of rehabilitation contracts. This was as a result of large volumes of applicants. The department received more than 1 100 bid applications and therefore the evaluation and adjudication took longer than anticipated. This was further intensified because the approval of the design and specification reports for the projects took longer than anticipated and was only completed in August 2019. The finalisation of the contracts was also delayed and these were only issued in October 2019, due to challenges in clarifying local content requirements in contracts. The delays were further exacerbated by the construction shut down period. Most of the construction work resumed during the final quarter of the financial year which then resulted in the substantial underspending that is being reported.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT160
REPORT BY THE ACCOUNTING OFFICERPART E:
• A roll-over of funds into the 2020/21 financial year has been requested in that regard.
PROGRAMME 3: TRANSPORT OPERATIONS
• Programme 3: Transport Operations reflects a minor under-expenditure of R169 000 against Machinery and equipment and was due to the lower than budgeted costs for computers purchased for staff.
PROGRAMME 4: TRANSPORT REGULATION
• The department fully spent its allocation against this programme.
PROGRAMME 5: COMMUNITY BASED PROGRAMME (R6.462 MILLION)
• Programme 5: Community Based Programme shows an under-expenditure of R6.462 million, against Goods and services due to lower than budgeted consultants’ costs related to the management and co-ordination of the departmental EPWP.
2.3 VIREMENTS
Virements that have taken place during the 2019/20 financial year were as a result of savings identified between programmes and used to defray expenditure pressures against other programmes.
The purpose of these virements was to ensure service delivery and alignment to the Department’s mandated objectives.
The department hereby confirms that these virements remain within the stipulated eight percent under each main division.
The virements that were applied are as per the below:
2019/2020
Programme Name Adjusted Appropriation Virements Final
AppropriationActual
Expenditure Variance
R’000 R’000 R’000 R’000 R’000
Administration 412 788 29 324 442 112 434 037 8 075
Transport Infrastructure 7 827 234 (74 548) 7 752 686 6 115 422 1 637 264
Transport Operations 1 739 396 72 894 1 812 290 1 812 121 169
Transport Regulation 950 936 (24 535) 926 401 926 398 3
Community Based Programme 39 191 (3 135) 36 056 29 594 6 462
Total 10 969 545 - 10 969 545 9 317 572 1 651 973
The department undertook virements post Adjustments Estimate to reduce unauthorised expenditure, in respect of Programme 1 and 3 as reflected above.
Most of the virements undertaken did not require Treasury approval as they were within the approval of the Accounting Officer, and do not exceed the 8 per cent limit set in terms of the PFMA.
The post Adjustments Estimate virements undertaken by the department are as follows:
a) A total amount of R3.135 million was moved from Programme 5: Community Based Programmes to Goods and services against the sub-programme: Corporate Services to cover expenditure pressures related to higher than projected computer services costs as well as computer servers as a result of network challenges that resulted in higher SITA costs. The movements were as follows:
• R934 000 from Compensation of employees ascribed to non-filling of posts against the sub-programme: Programme Support Community Based;
• R1.718 million from Compensation of employees ascribed to non-filling of posts against the sub-programme: Programme Innovation and Empowerment;
• R483 000 from Goods and services due to community development programmes that were not undertaken against the sub-programme: Community Development;
2019 - 2020KZN TRANSPORT ANNUAL REPORT 161
REPORT BY THE ACCOUNTING OFFICERPART E:
b) A total amount of R24.535 million was moved from Programme 4: Transport Regulation to R117 000 under Machinery and equipment and R24.418 million under Goods and services against the sub-programme: Corporate Services to cover expenditure pressures related to higher than projected computer services costs as well as computer servers as a result of network challenges that resulted in higher SITA costs. The movements were as follows:
• An amount of R52 000 was moved from Compensation of employees due to the non-filling of vacant posts against the sub-programme: Programme Support Regulation to Goods and services under the sub-programme: Corporate Services;
• An amount of R2.886 million was moved from Goods and services due to savings from non-filling of posts on items such as subsistence and travelling against the sub-programme: Programme Support Regulation to Goods and services under the sub-programme: Corporate Services;
• An amount of R165 000 was moved from Compensation of employees due to the non-filling of vacant posts against the sub-programme: Transport Administration and Licensing to Goods and services under the sub-programme: Corporate Services;
• An amount of R26 000 was moved from Compensation of employees due to the non-filling of vacant posts against the sub-programme: Transport Administration and Licensing to Transfers and Subsidies to: Provinces and Municipalities under the sub-programme: Corporate Services;
• An amount of R6 000 was moved from Compensation of employees due to the non-filling of vacant posts against the sub-programme: Transport Administration and Licensing to Transfers and Subsidies to: Households under the sub-programme: Corporate Services;
• An amount of R5.454 million was moved from Compensation of employees due to the non-filling of vacant posts against the sub-programme: Transport Administration and Licensing to Machinery and equipment under the sub-programme: Corporate Services;
• An amount of R1.891 million was moved from Goods and services due to lower than budgeted computer services costs against the sub-programme: Transport Administration and Licensing to Buildings and other fixed structures under the sub-programme: Corporate Services;
• An amount of R5.046 million was moved from Goods and services due to lower than budgeted computer services costs against the sub-programme: Transport Administration and Licensing to Buildings and other fixed structures under the sub-programme: Corporate Services;
• An amount of R7 000 was moved within the Transfers and Subsidies to: Households economic classification due to lower than budgeted staff exit costs from the sub-programme: Transport Administration and Licensing to the sub-programme: Corporate Services;
• An amount of R117 000 was moved within the Machinery and equipment economic classification in line with filling of posts which resulted in less demand for computer and office equipment from the sub-programme: Transport Administration and Licensing to the sub-programme: Corporate Services.
• An amount of R2.894 million was moved from Compensation of employees due to the non-filling of vacant posts against the sub-programme: Operator Licenses and Permits to Goods and services under the sub-programme: Corporate Services;
• An amount of R5.991 million was moved from Goods and services due to lower than budgeted property payments in respect of cleaning and security of departmental buildings the sub-programme: Operator Licenses and Permits to Goods and services under the sub-programme: Corporate Services;
c) A total amount of R1.654 million was moved from Goods and services as a result of slow progress with maintenance projects in respect of betterment and gravelling, as well as blading of gravel roads against the sub-programme: Maintenance under Programme 2: Transport Infrastructure to the sub-programme: Corporate Services to cover expenditure pressures related to higher than projected computer services costs as a result of network challenges that resulted in higher SITA costs.
d) A total amount of R72.894 million was moved to Public Corporations and Private Enterprises against the sub-programme: Public Transport Services, from Compensation of employees ascribed to non-filling of posts against the sub-programme: Maintenance under Programme 2: Transport Infrastructure, in respect of the Public Transport Operations grant (PTOG) due to under-funding of the grant since inception, as well as higher re-negotiated fees for bus subsidies paid to bus operators, which are also linked to labour and fuel indices.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT162
REPORT BY THE ACCOUNTING OFFICERPART E:
Requested roll-overs to 2020/21
The department reflected under-expenditure of R1.620 billion against its budget at year-end against the equitable share allocation, while the conditional grant allocation was fully spent. The department has requested an equitable share roll-over of R1.501 billion under Programme 2, against Buildings and other fixed structures, as follows:
• R1.170 billion was against Refurbishment and rehabilitation: Capital in respect of rehabilitation of surfaced roads. There were various factors such as delays in the awarding of contracts as a result of large volumes from applicants resulting in the evaluation and adjudication processes taking longer than anticipated. This was further intensified by the approval of the designs and specifications reports for the projects, which took longer than anticipated and was only completed in August 2019. The finalisation of the contracts was also delayed and were only issued in October 2019, due to SCM having to clarify local contents in contracts. In addition, the department experienced poor performance by contractors who abandon sites due to financial difficulties and had to cancel some of these non-performing contracts, and then re-advertise the tenders.
• R331.241 million was against Upgrades and additions: Capital in respect of roads upgrade. This was attributed to contracts that were terminated due to non-performance by contractors, change in the scope of work, delays in issuing tenders due to appeals, SCM related challenges, as well as contractors facing financial difficulties and thus not delivering on project milestones.
3. UNAUTHORISED, FRUITLESS AND WASTEFUL EXPENDITURE• The department did not incur any unauthorised expenditure in the 2019/20 financial year.
• The fruitless and wasteful expenditure incurred by the department in the 2019/20 financial year totals R broken down as follows:
R’000 Opening Balance
1 April 2019
Increase Decrease Closing Balance
31 March 2020
No Show Accommodation 26 - - 26
Printing of 2017/2018 Annual Report 160 - - 160
MR 38 Construction 733
Total 919 - - 919
4. FUTURE PLANS OF THE DEPARTMENTThe department plans to continue to strive to provide the public with mobility through an affordable transportation system that is safe, integrated, regulated and accessible, to meet the developmental needs of our province.
5. PUBLIC PRIVATE PARTNERSHIPSThe department did not enter into any Public Private Partnerships the 2019/20 financial year.
6. DISCONTINUED ACTIVITIES/ACTIVITIES TO BE DISCONTINUEDThe department did not discontinue, nor does it have any plans to discontinue any services/activities.
7. NEW/PROPOSED ACTIVITIESThere are no new/proposed activities during the 2019/20 financial year.
8. SUPPLY CHAIN MANAGEMENTList of unsolicited bid proposals concluded for the year under review
Any unsolicited bids received would have been dealt with in terms of the National Treasury Practice Note on unsolicited bids, however there were no unsolicited bids received during this reporting period.
List whether SCM processes are in place to prevent irregular expenditure
The Department has finalised the approved SCM Policy and Procedure Manual and workshopped it across all
2019 - 2020KZN TRANSPORT ANNUAL REPORT 163
REPORT BY THE ACCOUNTING OFFICERPART E:
Regional Offices and Head Office.
The department further developed a SCM Compliance System which was implemented in May 2020. The SCM Compliance System requires the SCM Pratcitioners to complete and automated checklist when undertaking a procurement transaction which ensures that all required procedures have been implemented prior to allowing an Order Approval to be finalised.
Challenges experienced in SCM and how they were resolved
Human Resource Structure shortcomings were noted in Head Office as well as Regional and Cost Centre offices. The department has finalised the organisational restructuring process and this has been forwarded to DPSA for approval. The post of Director: Supply Chain Management was filled with the new incumbent commencing duty from the 1st of February 2019 however there are still capacity challenges within the SCM Directorate, and the department has requested the Provincial Treasury to appoint additional capacity from their Panel.
9. GIFTS AND DONATIONS RECEIVED IN KIND FROM NON-RELATED PARTIES The Department did not receive any donations in cash or in kind from non-related parties for the 2019/20 financial year.
10. EXEMPTIONS AND DEVIATIONS RECEIVED FROM THE NATIONAL TREASURY The department did not receive any exemptions for the 2019/20 financial year.
11. EVENTS AFTER THE REPORTING DATE There are no significant events that occurred after the reporting date which will influence the interpretation of
the results under review.
12. OTHER There is no other material fact or circumstances, which may influence the understanding of the financial that is
not addressed elsewhere in this department.
13. CONCLUSION The attached Annual Financial Statements have been approved by the Accounting Officer.
______________________________
ACTING ACCOUNTING OFFICERNAME: MS. S. NGUBODATE: 31 JULY 2020
2019 - 2020KZN TRANSPORT ANNUAL REPORT 165
PART E:
KW
AZU
LU-N
ATA
L: T
RA
NSP
OR
T
App
ropr
iatio
n St
atem
ent
for t
he y
ear e
nded
31
Mar
ch 2
020
App
ropr
iatio
n pe
r pro
gram
me
2019
/20
2018
/19
Vote
d fu
nds
and
Dire
ct
char
ges
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Pr
ogra
mm
e
1.A
DM
INIS
TRAT
ION
412
788
-
29 3
24
442
112
4
34 0
37
8 0
75
98,2
%
39
1 94
5
391
945
2.TR
AN
SPO
RT
INFR
AST
RU
CTU
RE
7 82
7 23
4
-
(74
548)
7 7
52 6
86
6 1
15 4
22
1 6
37 2
64
78,9
%7
339
038
7 1
02 7
27
3.TR
AN
SPO
RT
OPE
RAT
ION
S1
739
396
- 72
894
1
812
290
1
812
121
16
9 10
0,0%
1 89
1 30
3
1
891
303
4.TR
AN
SPO
RT
REG
ULA
TIO
N95
0 93
6
-
(24
535)
926
401
9
26 3
98
3
100,
0%89
0 78
5
8
90 7
85
5.C
OM
MU
NIT
Y B
ASE
D
PRO
GR
AM
MES
39 1
91
- (3
135
) 3
6 05
6 29
594
6
462
82,1
%52
606
5
2 60
6
Pr
ogra
mm
e su
b to
tal
10 9
69 5
45
-
-
10
969
545
9 31
7 57
2 1
651
973
84,9
%10
565
677
1
0 32
9 36
6
St
atut
ory
App
ropr
iatio
n
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TO
TAL
10 9
69 5
45
-
-
10
969
545
9 3
17 5
72
1 65
1 97
3 84
,9%
10 5
65 6
77
10
329
366
Rec
onci
liatio
n w
ith S
tate
men
t of F
inan
cial
Per
form
ance
A
dd:
D
epar
tmen
tal r
ecei
pts
1 98
7 39
4
1 91
3 56
6
N
RF
Rec
eipt
s
-
-
A
id a
ssis
tanc
e
-
-
APPROPRIATION STATEMENT for the year ended 31 March 2020
2019 - 2020 KZN TRANSPORT ANNUAL REPORT166
Act
ual a
mou
nts
per S
tate
men
t of F
inan
cial
Per
form
ance
(Tot
al
Rev
enue
) 1
2 95
6 93
9
12
479
243
Add
: A
id a
ssis
tanc
e
6 6
33
4 9
41
P
rior y
ear u
naut
horis
ed e
xpen
ditu
re a
ppro
ved
with
out f
undi
ng
Act
ual a
mou
nts
per S
tate
men
t of F
inan
cial
Per
form
ance
E
xpen
ditu
re
9 3
24 2
05
10 3
34 3
07
A
ppro
pria
tion
per e
cono
mic
cla
ssifi
catio
n
20
19/2
020
18/1
9
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
C
urre
nt p
aym
ents
6 0
39 6
24
- (2
01 7
66)
5 8
37 8
58
5 6
52 0
66
185
792
96,8
% 5
758
134
5
787
763
C
ompe
nsat
ion
of
empl
oyee
s 1
670
715
-
(166
985
)1
503
730
1 5
03 7
26
4 10
0,0%
1 4
09 7
89
1 4
09 7
89
S
alar
ies
and
wag
es 1
422
603
-
(124
052
)1
298
551
1 2
98 5
47
4 10
0,0%
1 2
16 1
62
1 2
16 1
62
S
ocia
l con
tribu
tions
248
112
-
(42
933)
205
179
2
05 1
79
- 10
0,0%
193
627
1
93 6
27
G
oods
and
ser
vice
s4
368
909
- (3
4 78
1) 4
334
128
4
148
340
18
5 78
8 95
,7%
4 3
48 3
45
4 3
77 9
74
A
dmin
istra
tive
fees
2 2
88
- (1
90)
2
098
2 09
8 -
100,
0% 3
483
3
483
A
dver
tisin
g 8
366
-
(517
)
7 8
49
7
849
- 10
0,0%
7 7
31
7 7
31
M
inor
ass
ets
5 29
8
-
(2 5
76)
2 7
22
2 72
2 -
100,
0% 4
398
4 39
8
A
udit
cost
s: E
xter
nal
13
238
- 97
5
1
4 21
3 1
4 21
3 -
100,
0% 2
7 75
7 2
7 75
7
B
ursa
ries:
Em
ploy
ees
1 2
57
- (2
12)
1 0
45
1 04
5 -
100,
0%
95
8
95
8
C
ater
ing:
Dep
artm
enta
l ac
tiviti
es 4
741
-
(1 1
90)
3
551
3 5
51
- 10
0,0%
5 9
01
5 9
01
C
omm
unic
atio
n (G
&S
) 3
1 30
5
-
656
3
1 96
1 3
1 96
1 -
100,
0% 2
9 31
3 2
9 31
3
C
ompu
ter s
ervi
ces
101
376
-
95 8
96
197
272
189
198
8
074
95,9
% 2
06 6
21
2
06 6
21
APPROPRIATION STATEMENT for the year ended 31 March 2020
2019 - 2020KZN TRANSPORT ANNUAL REPORT 167
C
onsu
ltant
s: B
usin
ess
and
advi
sory
ser
vice
s 6
67 0
26
- 11
6 85
4 7
83 8
80
783
880
-
100,
0% 6
39 0
59
639
059
In
frast
ruct
ure
and
plan
ning
ser
vice
s 6
6 80
4
-
26 7
15
93
519
93
519
- 10
0,0%
82
992
82
992
La
bora
tory
ser
vice
s
35
5
-
(194
)16
1 16
1
-
100,
0%17
0 17
0
S
cien
tific
and
tech
nolo
gica
l ser
vice
s
-
-
-
-
-
-
-
- -
Le
gal s
ervi
ces
20
230
- (6
54)
19
576
19
576
- 10
0,0%
21
971
21
971
C
ontra
ctor
s 2
451
787
-
(308
882
)
2 14
2 90
5 1
965
191
17
7 71
4 91
,7%
2 26
2 42
1
2 29
2 05
0
A
genc
y an
d su
ppor
t /
outs
ourc
ed s
ervi
ces
1 1
81
- 1
415
2 5
96
2 5
96
- 10
0,0%
4 4
51
4 45
1
E
nter
tain
men
t
-
-
-
-
-
-
-
- -
Flee
t ser
vice
s (in
clud
ing
gove
rnm
ent m
otor
tra
nspo
rt)
207
040
-
20 6
88
227
728
2
27 7
28
- 10
0,0%
198
304
198
304
H
ousi
ng
-
-
-
-
-
-
-
- -
Inve
ntor
y: C
loth
ing
mat
eria
l and
ac
cess
orie
s
6 8
00
- 2
804
9 6
04
9 6
04
- 10
0,0%
7 3
33
7
333
In
vent
ory:
Far
min
g su
pplie
s
-
- -
- -
-
-
- -
In
vent
ory:
Foo
d an
d fo
od s
uppl
ies
638
- (2
51)
387
387
- 10
0,0%
448
448
In
vent
ory:
Fue
l, oi
l and
ga
s 3
984
-
80 6
86
84
670
84 6
70
- 10
0,0%
73
835
73
835
Inve
ntor
y: L
earn
er
and
teac
her s
uppo
rt m
ater
ial
209
- (2
09)
- -
- -
- -
In
vent
ory:
Mat
eria
ls a
nd
supp
lies
22
547
- (9
34)
21
613
21
613
- 10
0,0%
17 8
86
17
886
In
vent
ory:
Med
ical
su
pplie
s9
- (9
)
-
- -
-
-
-
In
vent
ory:
Med
icin
e
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT for the year ended 31 March 2020
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020 KZN TRANSPORT ANNUAL REPORT168
M
edsa
s in
vent
ory
inte
rface
-
-
-
-
-
-
-
-
-
In
vent
ory:
Oth
er
supp
lies
21
-
8
29
29
-
100,
0%
-
-
C
onsu
mab
le s
uppl
ies
10
097
-
(5
655
) 4
442
4
442
-
100,
0% 9
366
9
366
Con
sum
able
: S
tatio
nery
, prin
ting
and
offic
e su
pplie
s
2
9 67
3
-
(6 6
91)
22 9
82
22 9
82
- 10
0,0%
25
067
25 0
67
O
pera
ting
leas
es
72
561
-
(15
533)
57
028
57 0
28
- 10
0,0%
58
133
58
133
P
rope
rty p
aym
ents
1
87 3
91
-
(2
4 35
5) 1
63 0
36
163
036
- 10
0,0%
176
631
1
76 6
31
Tr
ansp
ort p
rovi
ded:
D
epar
tmen
tal a
ctiv
ity
35
1 66
4
-
(1 3
91)
350
273
35
0 27
3
-
100,
0% 3
96 1
76
396
176
Tr
avel
and
sub
sist
ence
76 4
00
-
(1
7 42
0) 5
8 98
0 58
980
-
100,
0% 7
1 12
4 7
1 12
4
Tr
aini
ng a
nd
deve
lopm
ent
9 0
61
-
1 14
2 1
0 20
3 1
0 20
3
-
100,
0% 6
008
6
008
O
pera
ting
paym
ents
5
130
-
2 20
5 7
335
7
335
-
100,
0% 4
399
4
399
Ve
nues
and
faci
litie
s
9
707
-
1
886
11
593
11
593
- 10
0,0%
5 2
12
5 2
12
R
enta
l and
hiri
ng
72
5
-
152
877
877
- 10
0,0%
1 1
97
1 1
97
In
tere
st a
nd re
nt o
n la
nd
-
-
-
-
-
-
-
-
-
Inte
rest
(Inc
l. in
tere
st
on u
nita
ry p
aym
ents
(P
PP
))
-
-
-
-
-
-
-
-
-
R
ent o
n la
nd
-
-
-
-
-
-
-
-
-
Tr
ansf
ers
and
subs
idie
s 1
317
867
-
94 9
30
1 41
2 79
7 1
412
792
5
100,
0% 1
416
716
1
416
716
P
rovi
nces
and
m
unic
ipal
ities
6 0
76
-
(171
) 5
905
5
904
1
100,
0% 6
174
6
174
P
rovi
nces
6 0
76
-
(171
) 5
905
5
904
1
100,
0% 6
174
6
174
APPROPRIATION STATEMENT for the year ended 31 March 2020
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020KZN TRANSPORT ANNUAL REPORT 169
P
rovi
ncia
l Rev
enue
Fu
nds
6
076
-
(171
) 5
905
5 90
4
1
100,
0% 6
174
6
174
P
rovi
ncia
l age
ncie
s an
d fu
nds
-
-
-
-
-
-
-
-
-
M
unic
ipal
ities
-
-
-
-
-
-
-
-
-
M
unic
ipal
ban
k ac
coun
ts
-
-
-
-
-
-
-
-
-
M
unic
ipal
age
ncie
s an
d fu
nds
-
-
-
-
-
-
-
-
-
D
epar
tmen
tal a
genc
ies
and
acco
unts
5
251
-
-
5 2
51
5 2
51
- 10
0,0%
4 5
64
4 56
4
S
ocia
l sec
urity
fund
s
-
-
-
-
-
-
-
-
-
D
epar
tmen
tal a
genc
ies
5
251
-
- 5
251
5
251
- 10
0,0%
4 5
64
4 56
4
H
ighe
r edu
catio
n in
stitu
tions
-
-
-
-
-
-
-
-
-
Fore
ign
gove
rnm
ents
an
d in
tern
atio
nal
orga
nisa
tions
-
-
-
-
-
-
-
-
-
P
ublic
cor
pora
tions
and
pr
ivat
e en
terp
rises
1
288
099
-
93 9
98
1 3
82 0
97
1 3
82 0
96
1 10
0,0%
1 3
90 8
94
1 39
0 89
4
P
ublic
cor
pora
tions
-
-
-
-
-
-
-
-
-
S
ubsi
dies
on
prod
ucts
an
d pr
oduc
tion
(pc)
-
-
-
-
-
-
-
-
-
O
ther
tran
sfer
s to
pub
lic
corp
orat
ions
-
-
-
-
-
-
-
-
-
P
rivat
e en
terp
rises
1 28
8 09
9
-
93 9
98
1 3
82 0
97
1 3
82 0
96
1 10
0,0%
1 39
0 89
4 1
390
894
S
ubsi
dies
on
prod
ucts
an
d pr
oduc
tion
(pe)
1 2
88 0
99
-
93
998
1
382
097
1
382
096
1
100,
0%1
390
894
1 3
90 8
94
O
ther
tran
sfer
s to
pr
ivat
e en
terp
rises
-
-
-
-
-
-
-
-
-
N
on-p
rofit
inst
itutio
ns
2
209
-
79
8
3 00
7 3
007
-
100,
0%
-
-
APPROPRIATION STATEMENT for the year ended 31 March 2020
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020 KZN TRANSPORT ANNUAL REPORT170
H
ouse
hold
s
16 2
32
- 30
5 1
6 53
7 1
6 53
4 3
100,
0%15
084
1
5 08
4
S
ocia
l ben
efits
1
0 43
8
-
(160
)
10 2
78
10
275
3 10
0,0%
7 7
97
7 7
97
O
ther
tran
sfer
s to
ho
useh
olds
5
794
-
465
6
259
6 2
59
- 10
0,0%
7 28
7 7
287
Pa
ymen
ts fo
r cap
ital
asse
ts
3 6
11 6
97
- 10
6 31
0 3
718
007
2 25
1 83
1 1
466
176
60
,6%
3 38
8 44
1 3
122
501
B
uild
ings
and
oth
er
fixed
stru
ctur
es
3 4
23 7
09
- 7
775
3 43
1 48
4
1 9
65 4
72
1 4
66 0
12
57,3
%3
201
111
2 93
5 17
1
B
uild
ings
20
500
- 21
834
4
2 33
4 4
2 33
4 -
100,
0%
-
-
O
ther
fixe
d st
ruct
ures
3 4
03 2
09
- (1
4 05
9) 3
389
150
1
923
138
1
466
012
56,7
%3
201
111
2
935
171
M
achi
nery
and
eq
uipm
ent
186
073
-
99 3
31
285
404
2
85 2
40
164
99,9
%18
5 07
9
18
5 07
9
Tr
ansp
ort e
quip
men
t 9
0 01
8
-
(16
512)
73
506
73
453
53
99,9
%81
349
8
1 34
9
O
ther
mac
hine
ry a
nd
equi
pmen
t 9
6 05
5
-
115
843
2
11 8
98
211
787
11
1 99
,9%
103
730
103
730
H
erita
ge a
sset
s
-
-
-
-
-
-
-
-
-
S
peci
alis
ed m
ilita
ry
asse
ts
-
-
-
-
-
-
-
-
-
B
iolo
gica
l ass
ets
-
-
-
-
-
-
-
-
-
La
nd a
nd s
ub-s
oil
asse
ts
-
-
-
-
-
-
-
-
-
S
oftw
are
and
othe
r in
tang
ible
ass
ets
1 9
15
- (7
96)
1 1
19
1 1
19
- 10
0,0%
2 2
51
2 2
51
Pa
ymen
t for
fina
ncia
l as
sets
357
- 52
6 88
3 88
3
-
100,
0% 2
386
2
386
10
969
545
-
-
10
969
545
9 31
7 57
2 1
651
973
84,9
%10
565
677
1
0 32
9 36
6
APPROPRIATION STATEMENT for the year ended 31 March 2020
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020KZN TRANSPORT ANNUAL REPORT 171
APPROPRIATION STATEMENT for the year ended 31 March 2020
PRO
GRA
MM
E 1:
ADM
INIS
TRAT
ION
2019
/20
2018
/19
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00Su
b pr
ogra
mm
e
1.O
FFIC
E O
F TH
E M
EC 1
8 14
0
-
(7 3
50)
10
790
10
789
1 10
0,0%
14
073
14
073
2.M
AN
AG
EMEN
T O
F TH
E D
EPA
RTM
ENT
18 2
28
- (1
0 94
7) 7
281
7
281
-
100,
0%11
924
1
1 92
4
3.C
OR
POR
ATE
SUPP
OR
T 3
39 5
58
- 45
972
38
5 53
0 3
77 4
56
8 07
4 97
,9%
346
065
346
065
4.D
EPA
RTM
ENTA
L ST
RAT
EGY
36
862
- 1
649
38
511
38
511
- 10
0,0%
19 8
83
19 8
83
412
788
-
29 3
24
442
112
4
34 0
37
8
075
98,2
%39
1 94
5 3
91 9
45
Ec
onom
ic c
lass
ifica
tion
C
urre
nt p
aym
ents
382
686
-
20 0
67
402
753
3
94 6
79
8 07
4 98
,0%
344
407
344
407
C
ompe
nsat
ion
of
empl
oyee
s 1
63 0
40
- (7
420
)15
5 62
0 5
5 62
0
-
100,
0% 1
44 6
58
144
658
S
alar
ies
and
wag
es 1
41 4
41
- (5
755
)13
5 68
6 1
35 6
86
- 10
0,0%
125
826
125
826
S
ocia
l con
tribu
tions
21
599
- (1
665
) 1
9 93
4 19
934
-
100,
0%18
832
1
8 83
2
G
oods
and
ser
vice
s 2
19 6
46
- 27
487
2
47 1
33
239
059
8 07
4 96
,7%
199
749
199
749
A
dmin
istra
tive
fees
893
- (4
86)
407
407
- 10
0,0%
1 4
52
1 4
52
A
dver
tisin
g 3
764
-
1 38
7 5
151
5 15
1
-
100,
0% 3
708
3
708
M
inor
ass
ets
434
- (1
60)
274
274
- 10
0,0%
545
545
A
udit
cost
s: E
xter
nal
9 8
14
- 1
468
11
282
11 2
82
- 10
0,0%
9 7
05
9 7
05
B
ursa
ries:
Em
ploy
ees
1 25
7
-
(212
) 1
045
1
045
- 10
0,0%
958
958
C
ater
ing:
Dep
artm
enta
l ac
tiviti
es59
7
-
120
717
717
- 10
0,0%
276
276
2019 - 2020 KZN TRANSPORT ANNUAL REPORT172
APPROPRIATION STATEMENT for the year ended 31 March 2020
C
omm
unic
atio
n (G
&S
) 9
756
-
(890
) 8
866
8
866
-
100,
0% 1
1 22
5 1
1 22
5
C
ompu
ter s
ervi
ces
55
076
- 26
930
8
2 00
6
73
932
8 07
4 90
,2%
74
972
74 9
72
C
onsu
ltant
s: B
usin
ess
and
advi
sory
ser
vice
s26
501
-
(3 4
94)
23
007
2
3 00
7
-
100,
0% 1
1 53
5 11
535
In
frast
ruct
ure
and
plan
ning
ser
vice
s
-
-
-
-
-
-
-
-
-
La
bora
tory
ser
vice
s
-
-
-
-
-
-
-
-
-
S
cien
tific
and
tech
nolo
gica
l ser
vice
s
-
-
-
-
-
-
-
-
-
Le
gal s
ervi
ces
15
482
-
2 34
7 17
829
17
829
- 10
0,0%
18 1
94
18
194
C
ontra
ctor
s 6
322
-
9
301
15
623
1
5 62
3
-
100,
0%17
072
1
7 07
2
A
genc
y an
d su
ppor
t /
outs
ourc
ed s
ervi
ces
1 1
81
-
1 41
5 2
596
2
596
-
100,
0% 4
429
4
429
E
nter
tain
men
t
-
-
-
-
-
-
-
-
-
Flee
t ser
vice
s (in
clud
ing
gove
rnm
ent m
otor
tra
nspo
rt)
9 4
21
- 2
963
12
384
1
2 38
4
-
100,
0% 4
462
4
462
H
ousi
ng
-
-
-
-
-
-
-
-
-
In
vent
ory:
Clo
thin
g m
ater
ial a
nd a
cces
sorie
s
-
-
-
-
-
-
-
-
-
In
vent
ory:
Far
min
g su
pplie
s
-
-
-
-
-
-
-
-
-
In
vent
ory:
Foo
d an
d fo
od
supp
lies
57
-
38
95
95
-
100,
0%
24
24
In
vent
ory:
Fue
l, oi
l and
ga
s
-
-
-
-
-
-
-
-
-
In
vent
ory:
Lea
rner
and
te
ache
r sup
port
mat
eria
l
20
9
-
(2
09)
-
-
-
-
-
-
In
vent
ory:
Mat
eria
ls a
nd
supp
lies
-
-
370
370
370
- 10
0,0%
198
198
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020KZN TRANSPORT ANNUAL REPORT 173
APPROPRIATION STATEMENT for the year ended 31 March 2020
In
vent
ory:
Med
ical
su
pplie
s
-
-
-
-
-
-
-
-
-
In
vent
ory:
Med
icin
e
-
-
-
-
-
-
-
-
-
M
edsa
s in
vent
ory
inte
rface
-
-
-
-
-
-
-
-
-
In
vent
ory:
Oth
er s
uppl
ies
- -
21
21
21
- 10
0,0%
- -
C
onsu
mab
le s
uppl
ies
1 1
66
-
1 30
6
1
306
-
100,
0% 1
347
1
347
Con
sum
able
: Sta
tione
ry,
prin
ting
and
offic
e su
pplie
s
1 5
58
- 32
7 1
885
1
885
-
100,
0%1
468
1 4
68
O
pera
ting
leas
es 9
558
-
(1 4
32)
8 1
26
8 1
26
- 10
0,0%
11 7
30
11 7
30
P
rope
rty p
aym
ents
53
218
- (1
1 62
5) 4
1 59
3
41
593
- 10
0,0%
14
771
14
771
Tr
ansp
ort p
rovi
ded:
D
epar
tmen
tal a
ctiv
ity42
8
-
258
686
686
- 10
0,0%
45
45
Tr
avel
and
sub
sist
ence
10 3
74
- (3
846
) 6
528
6
528
-
100,
0%
10 3
51
10 3
51
Tr
aini
ng a
nd d
evel
opm
ent
726
- 6
732
732
- 10
0,0%
278
278
O
pera
ting
paym
ents
791
- 2
140
2 9
31
2 9
31
- 10
0,0%
954
954
Ve
nues
and
faci
litie
s96
1
-
610
1 5
71
1 5
71
- 10
0,0%
50
50
R
enta
l and
hiri
ng10
2
-
- 10
2 10
2
-
100,
0%
-
-
In
tere
st a
nd re
nt o
n la
nd
-
-
-
-
-
-
-
-
-
In
tere
st (I
ncl.
inte
rest
on
unita
ry p
aym
ents
(PP
P))
-
-
-
-
-
-
-
-
-
R
ent o
n la
nd
-
-
-
-
-
-
-
-
-
Tr
ansf
ers
and
subs
idie
s 1
0 82
6 -
1 79
5 12
621
12
620
1
10
0,0%
8 47
6 8
476
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020 KZN TRANSPORT ANNUAL REPORT174
APPROPRIATION STATEMENT for the year ended 31 March 2020
P
rovi
nces
and
m
unic
ipal
ities
87
-
28
11
5
11
5
-
100,
0%
93
93
P
rovi
nces
87
-
28
11
5
11
5
-
100,
0%
93
93
P
rovi
ncia
l Rev
enue
Fun
ds
87
-
28
115
115
- 10
0,0%
93
93
P
rovi
ncia
l age
ncie
s an
d fu
nds
-
-
-
-
-
-
-
-
-
M
unic
ipal
ities
-
-
-
-
-
-
-
-
-
M
unic
ipal
ban
k ac
coun
ts
-
-
-
-
-
-
-
-
-
M
unic
ipal
age
ncie
s an
d fu
nds
-
-
-
-
-
-
-
-
-
D
epar
tmen
tal a
genc
ies
and
acco
unts
5
251
-
-
5
251
5 2
51
- 10
0,0%
4
564
4
564
S
ocia
l sec
urity
fund
s
-
-
-
-
-
-
-
-
-
D
epar
tmen
tal a
genc
ies
5
251
-
-
5
251
5 2
51
- 10
0,0%
4
564
4
564
H
ighe
r edu
catio
n in
stitu
tions
-
-
-
-
-
-
-
-
-
Fo
reig
n go
vern
men
ts a
nd
inte
rnat
iona
l org
anis
atio
ns
-
-
-
-
-
-
-
-
-
P
ublic
cor
pora
tions
and
pr
ivat
e en
terp
rises
-
-
-
-
-
-
-
-
-
P
ublic
cor
pora
tions
-
-
-
-
-
-
-
-
-
S
ubsi
dies
on
prod
ucts
an
d pr
oduc
tion
(pc)
-
-
-
-
-
-
-
-
-
O
ther
tran
sfer
s to
pub
lic
corp
orat
ions
-
-
-
-
-
-
-
-
-
P
rivat
e en
terp
rises
-
-
-
-
-
-
-
-
-
S
ubsi
dies
on
prod
ucts
an
d pr
oduc
tion
(pe)
-
-
-
-
-
-
-
-
-
O
ther
tran
sfer
s to
priv
ate
ente
rpris
es
-
-
-
-
-
-
-
-
-
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020KZN TRANSPORT ANNUAL REPORT 175
APPROPRIATION STATEMENT for the year ended 31 March 2020
N
on-p
rofit
inst
itutio
ns
-
-
-
-
-
-
-
-
-
H
ouse
hold
s
5 4
88
- 1
767
7
255
7 2
54
1 10
0,0%
3
819
3
819
S
ocia
l ben
efits
1
407
-
(321
)
1 08
6
1
085
1
99,9
%
1 28
6
1 2
86
O
ther
tran
sfer
s to
ho
useh
olds
4
081
-
2 08
8
6 16
9
6
169
-
100,
0%
2 53
3
2 5
33
Pa
ymen
ts fo
r cap
ital
asse
ts
1
9 27
2
-
7 46
2
26
734
2
6 73
4
-
100,
0%
3
9 06
2
3
9 06
2
B
uild
ings
and
oth
er fi
xed
stru
ctur
es
-
- 1
891
1
891
1 89
1
-
100,
0%
-
-
B
uild
ings
-
-
1
891
1
891
1
891
-
100,
0%
-
-
O
ther
fixe
d st
ruct
ures
-
-
-
-
-
-
-
-
-
M
achi
nery
and
equ
ipm
ent
19
272
- 5
563
2
4 83
5
24
835
- 10
0,0%
39 0
62
39
062
Tr
ansp
ort e
quip
men
t
9 0
00
- (9
000
)
-
-
-
- 22
888
2
2 88
8
O
ther
mac
hine
ry a
nd
equi
pmen
t
10 2
72
- 14
563
2
4 83
5
24
835
- 10
0,0%
16 1
74
16
174
H
erita
ge a
sset
s
-
-
-
-
-
-
-
-
-
S
peci
alis
ed m
ilita
ry a
sset
s
-
-
-
-
-
-
-
-
-
B
iolo
gica
l ass
ets
-
-
-
-
-
-
-
-
-
La
nd a
nd s
ub-s
oil a
sset
s
-
-
-
-
-
-
-
-
-
S
oftw
are
and
othe
r in
tang
ible
ass
ets
-
-
8
8
8
-
100,
0%
-
-
Pa
ymen
t for
fina
ncia
l as
sets
4 -
- 4
4
-
100,
0%-
-
412
788
-
29 3
24
442
112
43
4 03
7
8 07
5 98
,2%
391
945
39
1 94
5
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020 KZN TRANSPORT ANNUAL REPORT176
APPROPRIATION STATEMENT for the year ended 31 March 2020
PRO
GRA
MM
E 2:
TRA
NSP
ORT
INFR
AST
RUCT
URE
2019
/20
2018
/19
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00Su
b pr
ogra
mm
e
1.PR
OG
RA
MM
E SU
PPO
RT
INFR
AST
RU
CU
RE
653
140
-
1
49 4
26
8
02 5
66
80
2 56
5
1
100,
0%
66
9 44
0 6
69 4
40
2.IN
FRA
STR
UC
TUR
E PL
AN
NIN
G
3
2 44
7
-
(11
986)
20
461
2
0 46
1
-
100,
0%
3
6 78
7
36
787
3.IN
FRA
STR
UC
TUR
E D
ESIG
N
45
322
-
(1
503
)
4
3 81
9
43
819
-
100,
0%
37
929
37
929
4.C
ON
STR
UC
TIO
N
3 42
3 70
9
-
-
3
423
709
1
957
697
1
466
012
57
,2%
3 2
04 1
74
2 93
8 23
4
5.M
AIN
TEN
AN
CE
3
672
616
-
210
485
)
3
462
131
3
290
880
1
71 2
51
95,1
%
3 39
0 70
8
3
420
337
7
827
234
-
(74
548)
7 7
52 6
86
6 1
15 4
22
1 6
37 2
64
78,9
%
7 33
9 03
8
7
102
727
Ec
onom
ic c
lass
ifica
tion
C
urre
nt p
aym
ents
4
247
590
- (
150
774)
4 0
96 8
16
3 9
25 5
64
17
1 25
2 95
,8%
3
999
796
4
029
425
C
ompe
nsat
ion
of
empl
oyee
s
772
966
-
(119
564
)
653
402
653
401
1
100,
0%
60
5 83
9
605
839
S
alar
ies
and
wag
es 6
50 3
35
- (8
2 87
4)
567
461
5
67 4
60
1 10
0,0%
524
856
524
856
S
ocia
l con
tribu
tions
1
22 6
31
- (3
6 69
0)
8
5 94
1
85 9
41
- 10
0,0%
8
0 98
3
8
0 98
3
G
oods
and
ser
vice
s
3 4
74 6
24
- (3
1 21
0)
3 4
43 4
14
3
272
163
17
1 25
1 95
,0%
3 39
3 95
7
3 4
23 5
86
A
dmin
istra
tive
fees
633
- 95
72
8 72
8
-
100,
0%84
8
84
8
Adv
ertis
ing
2
031
-
(1 0
29)
1 0
02
1 0
02
- 10
0,0%
2
272
2 27
2
M
inor
ass
ets
3 8
52
- (3
078
)77
4 77
4
-
100,
0%
2
732
2
732
A
udit
cost
s: E
xter
nal
59
-
-
59
59
-
100,
0%
-
-
2019 - 2020KZN TRANSPORT ANNUAL REPORT 177
APPROPRIATION STATEMENT for the year ended 31 March 2020
B
ursa
ries:
E
mpl
oyee
s
-
-
-
-
-
-
-
-
-
C
ater
ing:
D
epar
tmen
tal a
ctiv
ities
345
-
(209
)
13
6
13
6
-
100,
0%
36
0
36
0
Com
mun
icat
ion
(G&
S)
7
799
-
(433
)
7
366
7 3
66
- 10
0,0%
7 50
1
7
501
C
ompu
ter s
ervi
ces
3
0 76
1
-
50 7
75
81 5
36
8
1 53
6
-
100,
0%
9
5 05
8
95
058
C
onsu
ltant
s: B
usin
ess
and
advi
sory
ser
vice
s
597
957
-
13
0 33
7
72
8 29
4
7
28 2
94
- 10
0,0%
552
479
5
52 4
79
In
frast
ruct
ure
and
plan
ning
se
rvic
es
6
6 80
4
-
26 7
15
9
3 51
9
93
519
- 10
0,0%
82
521
8
2 52
1
La
bora
tory
ser
vice
s35
5
-
(199
)15
6 15
6
-
100,
0%16
5 16
5
S
cien
tific
and
tech
nolo
gica
l se
rvic
es
-
-
-
-
-
-
-
-
-
Le
gal s
ervi
ces
1 3
01
- (1
136
)16
5 16
5
-
100,
0%
1 32
3
1 3
23
C
ontra
ctor
s2
414
785
-
(315
641
)2
099
144
1 92
7 89
3
171
251
91,8
%
2 2
13 5
63
2 24
3 19
2
A
genc
y an
d su
ppor
t /
outs
ourc
ed s
ervi
ces
-
-
-
-
-
-
-
22
22
Ent
erta
inm
ent
-
-
-
-
-
-
-
-
-
Flee
t ser
vice
s (in
clud
ing
gove
rnm
ent m
otor
tra
nspo
rt)
1
55 0
69
- 30
994
186
063
186
063
- 10
0,0%
154
264
154
264
H
ousi
ng
-
-
-
-
-
-
-
-
-
In
vent
ory:
Clo
thin
g m
ater
ial a
nd a
cces
sorie
s
6 72
2
-
2 77
6
9
498
9
498
- 10
0,0%
7
260
7 2
60
In
vent
ory:
Far
min
g su
pplie
s
-
-
-
-
-
-
-
-
-
In
vent
ory:
Foo
d an
d fo
od
supp
lies
430
- (2
48)
182
182
- 10
0,0%
315
315
In
vent
ory:
Fue
l, oi
l and
gas
3 9
84
-
80
692
84 6
76
84 6
76
- 10
0,0%
73
830
7
3 83
0
In
vent
ory:
Lea
rner
and
te
ache
r sup
port
mat
eria
l
-
-
-
-
-
-
-
-
-
In
vent
ory:
Mat
eria
ls a
nd
supp
lies
22
386
- (1
516
)
20
870
20 8
70
- 10
0,0%
17
512
17 5
12
In
vent
ory:
Med
ical
sup
plie
s
-
-
-
-
-
-
-
-
-
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020 KZN TRANSPORT ANNUAL REPORT178
APPROPRIATION STATEMENT for the year ended 31 March 2020
In
vent
ory:
Med
icin
e
-
-
-
-
-
-
-
-
-
M
edsa
s in
vent
ory
inte
rface
-
-
-
-
-
-
-
-
-
Inve
ntor
y: O
ther
sup
plie
s
4
- (1
3)
(9)
(9
)
-
100,
0%
-
-
Con
sum
able
sup
plie
s
7
006
- (4
659
)
2
347
2
347
-
100,
0%
5
887
5
887
C
onsu
mab
le: S
tatio
nery
, pr
intin
g an
d of
fice
supp
lies
4 4
12
- (1
268
)
3
144
3 1
44
- 10
0,0%
4 22
3
4
223
O
pera
ting
leas
es
11
820
-
(11
323)
497
497
- 10
0,0%
12
966
12
966
P
rope
rty p
aym
ents
8
3 54
6
-
(5 0
38)
78 5
08
7
8 50
8
-
100,
0%
11
2 31
2
1
12 3
12
Tr
ansp
ort p
rovi
ded:
D
epar
tmen
tal a
ctiv
ity28
-
61
89
89
- 10
0,0%
626
626
Tr
avel
and
sub
sist
ence
4
1 92
8
-
(8 4
46)
3
3 48
2
33 4
82
- 10
0,0%
37
968
37
968
Tr
aini
ng a
nd d
evel
opm
ent
7 4
27
- 1
872
9 29
9
9
299
-
100,
0%
4 8
70
4
870
O
pera
ting
paym
ents
2 4
08
- (9
52)
1 45
6
1
456
-
100,
0%
1
829
1 8
29
Ve
nues
and
faci
litie
s48
0
-
(4
69)
11
11
- 10
0,0%
555
555
R
enta
l and
hiri
ng29
2
-
130
422
422
- 10
0,0%
696
696
In
tere
st a
nd re
nt o
n la
nd
-
-
-
-
-
-
-
-
-
In
tere
st (I
ncl.
inte
rest
on
unita
ry p
aym
ents
(PP
P))
-
-
-
-
-
-
-
-
-
Ren
t on
land
-
-
-
-
-
-
-
-
-
Tran
sfer
s an
d su
bsid
ies
1
2 52
1
-
183
12 7
04
12
704
-
100,
0%
14
670
1
4 67
0
P
rovi
nces
and
m
unic
ipal
ities
5
307
-
(1
81)
5 1
26
5
126
- 10
0,0%
5
375
5
375
P
rovi
nces
5
307
-
(1
81)
5 1
26
5
126
-
100,
0%
5 3
75
5
375
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020KZN TRANSPORT ANNUAL REPORT 179
APPROPRIATION STATEMENT for the year ended 31 March 2020
P
rovi
ncia
l Rev
enue
Fun
ds
5 30
7
-
(181
)
5 1
26
5
126
-
100,
0%
5
375
5
375
P
rovi
ncia
l age
ncie
s an
d fu
nds
-
-
-
-
-
-
-
-
-
Mun
icip
aliti
es
-
-
-
-
-
-
-
-
-
M
unic
ipal
ban
k ac
coun
ts
-
-
-
-
-
-
-
-
-
M
unic
ipal
age
ncie
s an
d fu
nds
-
-
-
-
-
-
-
-
-
Dep
artm
enta
l age
ncie
s an
d ac
coun
ts
-
-
-
-
-
-
-
-
-
S
ocia
l sec
urity
fund
s
-
-
-
-
-
-
-
-
-
D
epar
tmen
tal a
genc
ies
-
-
-
-
-
-
-
-
-
Hig
her e
duca
tion
inst
itutio
ns
-
-
-
-
-
-
-
-
-
Fo
reig
n go
vern
men
ts a
nd
inte
rnat
iona
l org
anis
atio
ns
-
-
-
-
-
-
-
-
-
P
ublic
cor
pora
tions
and
pr
ivat
e en
terp
rises
-
-
-
-
-
-
-
-
-
Pub
lic c
orpo
ratio
ns
-
-
-
-
-
-
-
-
-
S
ubsi
dies
on
prod
ucts
and
pr
oduc
tion
(pc)
-
-
-
-
-
-
-
-
-
Oth
er tr
ansf
ers
to p
ublic
co
rpor
atio
ns
-
-
-
-
-
-
-
-
-
P
rivat
e en
terp
rises
-
-
-
-
-
-
-
-
-
Sub
sidi
es o
n pr
oduc
ts a
nd
prod
uctio
n (p
e)
-
-
-
-
-
-
-
-
-
O
ther
tran
sfer
s to
priv
ate
ente
rpris
es
-
-
-
-
-
-
-
-
-
N
on-p
rofit
inst
itutio
ns
-
-
-
-
-
-
-
-
-
H
ouse
hold
s
7
214
-
364
7
578
7
578
-
100,
0%
9 2
95
9 29
5
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020 KZN TRANSPORT ANNUAL REPORT180
APPROPRIATION STATEMENT for the year ended 31 March 2020
S
ocia
l ben
efits
5
545
-
1
943
7 48
8
7
488
-
100,
0%
4 55
3
4
553
O
ther
tran
sfer
s to
ho
useh
olds
1
669
-
(1 5
79)
90
90
- 10
0,0%
4 7
42
4 7
42
Pa
ymen
ts fo
r cap
ital
asse
ts
3 5
66 7
70
- 75
517
3
642
287
2
176
275
1
466
012
59,8
%
3
324
183
3 0
58 2
43
B
uild
ings
and
oth
er fi
xed
stru
ctur
es
3 4
23 7
09
-
5 88
4
3 4
29 5
93
1
963
581
1
466
012
57
,3%
3
201
111
2 9
35 1
71
B
uild
ings
20
500
-
19
943
4
0 44
3
40
443
-
100,
0%
-
-
Oth
er fi
xed
stru
ctur
es
3
403
209
-
(14
059)
3 3
89 1
50
1
923
138
1
466
012
56,7
%
3
201
111
2
935
171
M
achi
nery
and
equ
ipm
ent
141
146
-
70 4
37
21
1 58
3
211
583
-
100,
0%
12
0 82
1
120
821
Tr
ansp
ort e
quip
men
t
5
8 00
0
-
(30
527)
2
7 47
3
2
7 47
3
-
100,
0%
3
5 84
4
3
5 84
4
O
ther
mac
hine
ry a
nd
equi
pmen
t
8
3 14
6
-
10
0 96
4
184
110
1
84 1
10
- 10
0,0%
84 9
77
84
977
H
erita
ge a
sset
s
-
-
-
-
-
-
-
-
-
S
peci
alis
ed m
ilita
ry a
sset
s
-
-
-
-
-
-
-
-
-
B
iolo
gica
l ass
ets
-
-
-
-
-
-
-
-
-
Land
and
sub
-soi
l ass
ets
-
-
-
-
-
-
-
-
-
Sof
twar
e an
d ot
her
inta
ngib
le a
sset
s
1
915
-
(804
)
1
11
1
1 11
1
-
100,
0%
2
251
2 2
51
Pa
ymen
t for
fina
ncia
l as
sets
353
- 52
6 87
9 87
9
-
100,
0%38
9 38
9
7
827
234
-
(74
548)
7 7
52 6
86
6 1
15 4
22
1 63
7 26
4 78
,9%
7 3
39 0
38
7 10
2 72
7
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020KZN TRANSPORT ANNUAL REPORT 181
APPROPRIATION STATEMENT for the year ended 31 March 2020
PRO
GR
AM
ME
3: T
RA
NSP
OR
T O
PER
ATIO
NS
2019
/20
2018
/19
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00Su
b pr
ogra
mm
e
1.
PRO
GR
AM
ME
SUPP
OR
T O
PER
ATIO
NS
2
1 71
7
-
(2 7
65)
18 9
52
18
921
31
99,8
%
4
1 87
2
41
872
2.
PUB
LIC
TR
AN
SPO
RT
SER
VIC
ES
1 63
6 40
0
-
94 2
07
1 73
0 60
7
1 7
30 6
05
2 10
0,0%
1
784
411
1 78
4 41
1
3.
TRA
NSP
OR
T SA
FETY
AN
D
CO
MPL
IAN
CE
8
1 27
9
-
(18
548)
62 7
31
62
595
136
99,8
%
6
5 02
0
6
5 02
0
1 73
9 39
6
-
72 8
94
1 81
2 29
0
1 81
2 12
1
16
9 10
0,0%
1
891
303
1 8
91 3
03
Ec
onom
ic c
lass
ifica
tion
C
urre
nt p
aym
ents
45
1 04
6
-
(21
048)
429
998
429
994
4 10
0,0%
500
125
500
125
C
ompe
nsat
ion
of
empl
oyee
s
45
155
- (5
915
)39
240
3
9 23
9
1
100,
0%
3
8 14
4
3
8 14
4
S
alar
ies
and
wag
es
38
167
- (3
167
)35
000
34
999
1
100,
0%
3
4 11
7
3
4 11
7
S
ocia
l con
tribu
tions
6 9
88
- (2
748
)4
240
4 24
0
-
100,
0%
4
027
4
027
G
oods
and
ser
vice
s
405
891
- (1
5 13
3)39
0 75
8 39
0 75
5 3
100,
0%
46
1 98
1
4
61 9
81
A
dmin
istra
tive
fees
2
08
- (1
3)19
5 19
5
-
100,
0%29
4 29
4
A
dver
tisin
g
2
507
-
(876
)1
631
1 63
1
-
100,
0%
1 6
65
1
665
M
inor
ass
ets
7
- 13
9 14
6 14
6
-
100,
0%28
0 28
0
A
udit
cost
s: E
xter
nal
-
-
-
-
-
-
-
-
-
B
ursa
ries:
E
mpl
oyee
s
-
-
-
-
-
-
-
-
-
2019 - 2020 KZN TRANSPORT ANNUAL REPORT182
Cat
erin
g:
Dep
artm
enta
l ac
tiviti
es
3 7
08
- (1
014
)2
694
2 69
4
-
100,
0%
5 2
42
5
242
C
omm
unic
atio
n (G
&S
)
4
210
-
3 74
7 7
957
7 95
7
-
100,
0%2
881
2 88
1
C
ompu
ter s
ervi
ces
-
-
-
-
-
-
-
-
-
Con
sulta
nts:
B
usin
ess
and
advi
sory
ser
vice
s
1
2 59
8
-
(1 4
72)
11 1
26
11 1
26
- 10
0,0%
27 6
77
27 6
77
In
frast
ruct
ure
and
plan
ning
ser
vice
s
-
-
-
-
-
-
-
-
-
La
bora
tory
ser
vice
s
-
-
-
-
-
-
-
-
-
Sci
entifi
c an
d te
chno
logi
cal
serv
ices
-
-
-
-
-
-
-
-
-
Le
gal s
ervi
ces
5
53
- (4
56)
97
97
- 10
0,0%
25
25
C
ontra
ctor
s
14
491
-
(1
1 78
5)2
706
2 70
3
3
99,9
%10
652
10
652
A
genc
y an
d su
ppor
t /
outs
ourc
ed s
ervi
ces
-
-
-
-
-
-
-
-
-
E
nter
tain
men
t
-
-
-
-
-
-
-
-
-
Flee
t ser
vice
s (in
clud
ing
gove
rnm
ent m
otor
tra
nspo
rt)
2
65
- (2
60)
5 5
- 10
0,0%
235
235
H
ousi
ng
-
-
-
-
-
-
-
-
-
Inve
ntor
y: C
loth
ing
mat
eria
l and
ac
cess
orie
s
-
-
-
-
-
-
-
30
30
In
vent
ory:
Far
min
g su
pplie
s
-
-
-
-
-
-
-
-
-
In
vent
ory:
Foo
d an
d fo
od s
uppl
ies
11
-
-
11
11
- 10
0,0%
-
-
APPROPRIATION STATEMENT for the year ended 31 March 2020
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020KZN TRANSPORT ANNUAL REPORT 183
In
vent
ory:
Fue
l, oi
l an
d ga
s
-
-
(6)
(6)
(6)
- 10
0,0%
5 5
Inve
ntor
y: L
earn
er
and
teac
her s
uppo
rt m
ater
ial
-
-
-
-
-
-
-
-
-
In
vent
ory:
Mat
eria
ls
and
supp
lies
20
- (1
0)10
10
-
100,
0%12
12
In
vent
ory:
Med
ical
su
pplie
s
-
-
-
-
-
-
-
-
-
In
vent
ory:
Med
icin
e
-
-
-
-
-
-
-
-
-
M
edsa
s in
vent
ory
inte
rface
-
-
-
-
-
-
-
-
-
In
vent
ory:
Oth
er
supp
lies
-
-
-
-
-
-
-
-
-
C
onsu
mab
le s
uppl
ies
6
86
-
(579
)10
7 10
7
-
100,
0%62
8 62
8
Con
sum
able
: S
tatio
nery
, prin
ting
and
offic
e su
pplie
s
1 0
30
-
(523
)50
7 50
7
-
100,
0%
76
9
76
9
O
pera
ting
leas
es
43
-
44
87
87
- 10
0,0%
41
41
P
rope
rty p
aym
ents
2 9
86
- (2
381
)60
5 60
5
-
100,
0%5
933
5 93
3
Tr
ansp
ort p
rovi
ded:
D
epar
tmen
tal a
ctiv
ity
350
265
- (7
67)
349
498
349
498
- 10
0,0%
395
341
395
341
Tr
avel
and
su
bsis
tenc
e
4
616
-
(369
)4
247
4 24
7
-
100,
0%5
610
5 61
0
Tr
aini
ng a
nd
deve
lopm
ent
2
09
- (2
09)
-
-
-
-
-
-
O
pera
ting
paym
ents
1
94
- 85
27
9 27
9
-
100,
0%12
0 12
0
Ve
nues
and
faci
litie
s
7
006
-
1 75
8 8
764
8 76
4
-
100,
0%4
317
4 31
7
R
enta
l and
hiri
ng
278
-
(186
)92
92
-
100,
0%22
4 22
4
In
tere
st a
nd re
nt o
n la
nd
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT for the year ended 31 March 2020
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020 KZN TRANSPORT ANNUAL REPORT184
Inte
rest
(Inc
l. in
tere
st
on u
nita
ry p
aym
ents
(P
PP
))
-
-
-
-
-
-
-
-
-
R
ent o
n la
nd
-
-
-
-
-
-
-
-
-
Tr
ansf
ers
and
subs
idie
s
1
288
156
-
93
942
1
382
098
1 38
2 09
7 1
100,
0%1
390
907
1 39
0 90
7
P
rovi
nces
and
m
unic
ipal
ities
13
-
(1
2)
1
1
-
100,
0%
-
-
P
rovi
nces
13
-
(1
2)
1
1
-
100,
0%
-
-
P
rovi
ncia
l Rev
enue
Fu
nds
13
-
(1
2)
1
1
-
100,
0%
-
-
P
rovi
ncia
l age
ncie
s an
d fu
nds
-
-
-
-
-
-
-
-
-
M
unic
ipal
ities
-
-
-
-
-
-
-
-
-
M
unic
ipal
ban
k ac
coun
ts
-
-
-
-
-
-
-
-
-
M
unic
ipal
age
ncie
s an
d fu
nds
-
-
-
-
-
-
-
-
-
Dep
artm
enta
l ag
enci
es a
nd
acco
unts
-
-
-
-
-
-
-
-
-
S
ocia
l sec
urity
fund
s
-
-
-
-
-
-
-
-
-
D
epar
tmen
tal
agen
cies
-
-
-
-
-
-
-
-
-
H
ighe
r edu
catio
n in
stitu
tions
-
-
-
-
-
-
-
-
-
Fore
ign
gove
rnm
ents
an
d in
tern
atio
nal
orga
nisa
tions
-
-
-
-
-
-
-
-
-
Pub
lic c
orpo
ratio
ns
and
priv
ate
ente
rpris
es
1 28
8 09
9
-
93 9
98
1 38
2 09
7 1
382
096
1 10
0,0%
1 39
0 89
4 1
390
894
P
ublic
cor
pora
tions
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT for the year ended 31 March 2020
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020KZN TRANSPORT ANNUAL REPORT 185
Sub
sidi
es o
n pr
oduc
ts a
nd
prod
uctio
n (p
c)
-
-
-
-
-
-
-
-
-
O
ther
tran
sfer
s to
pu
blic
cor
pora
tions
-
-
-
-
-
-
-
-
-
P
rivat
e en
terp
rises
1 28
8 09
9
-
93 9
98
1 38
2 09
7 1
382
096
1 10
0,0%
1 39
0 89
4 1
390
894
Sub
sidi
es o
n pr
oduc
ts a
nd
prod
uctio
n (p
e)
1 28
8 09
9
-
93 9
98
1 38
2 09
7 1
382
096
1 10
0,0%
1 39
0 89
4 1
390
894
O
ther
tran
sfer
s to
pr
ivat
e en
terp
rises
-
-
-
-
-
-
-
-
-
N
on-p
rofit
inst
itutio
ns
-
-
-
-
-
-
-
-
-
H
ouse
hold
s
44
-
(44)
-
-
-
-
13
13
S
ocia
l ben
efits
-
-
-
-
-
-
-
1
1
O
ther
tran
sfer
s to
ho
useh
olds
44
- (4
4)
-
-
-
-
12
12
Pa
ymen
ts fo
r ca
pita
l ass
ets
1
94
-
-
194
30
164
15,5
%27
1 27
1
B
uild
ings
and
ot
her fi
xed
stru
ctur
es
-
-
-
-
-
-
-
-
-
B
uild
ings
-
-
-
-
-
-
-
-
-
O
ther
fixe
d st
ruct
ures
-
-
-
-
-
-
-
-
-
M
achi
nery
and
eq
uipm
ent
1
94
-
-
194
30
164
15,5
%27
1 27
1
Tr
ansp
ort e
quip
men
t
53
-
- 53
-
53
-
- -
O
ther
mac
hine
ry a
nd
equi
pmen
t
141
-
- 14
1 30
11
1 21
,3%
271
271
H
erita
ge a
sset
s
-
-
-
-
-
-
-
-
-
S
peci
alis
ed m
ilita
ry
asse
ts
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT for the year ended 31 March 2020
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020 KZN TRANSPORT ANNUAL REPORT186
PRO
GRA
MM
E 4:
TRA
NSP
ORT
REG
ULA
TIO
N
20
19/2
020
18/1
9
A
djus
ted
App
ropr
iatio
n S
hifti
ng o
f Fu
nds
Vire
men
t F
inal
A
ppro
pria
tion
Act
ual
Expe
nditu
re
Var
ianc
e Ex
pend
iture
as
% o
f fina
l ap
prop
riatio
n
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00Su
b pr
ogra
mm
e
1.PR
OG
RA
MM
E SU
PPO
RT
REG
ULA
TIO
N
1
0 93
8
-
(2 9
38)
8 00
0 8
000
- 10
0,0%
9 10
4 9
104
2.TR
AN
SPO
RT
AD
MIN
ISTR
ATIO
N
AN
D L
ICEN
SIN
G
15
0 10
1
-
(12
811)
137
290
137
290
- 10
0,0%
154
698
154
698
3.O
PER
ATO
R
LIC
ENSE
S A
ND
PE
RM
ITS
7
0 38
6
-
(8 8
85)
61 5
01
61 5
00
1 10
0,0%
59 5
71
59 5
71
4.LA
W
ENFO
RC
EMEN
T
719
511
- 99
71
9 61
0 71
9 60
8
2
100,
0%66
7 41
2 66
7 41
2
95
0 93
6
-
(24
535)
926
401
926
398
3 10
0,0%
890
785
890
785
APPROPRIATION STATEMENT for the year ended 31 March 2020
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
B
iolo
gica
l ass
ets
-
-
-
-
-
-
-
-
-
La
nd a
nd s
ub-s
oil
asse
ts
-
-
-
-
-
-
-
-
-
S
oftw
are
and
othe
r in
tang
ible
ass
ets
-
-
-
-
-
-
-
-
-
Pa
ymen
t for
fin
anci
al a
sset
s
-
-
-
-
-
-
-
-
-
1 73
9 39
6
-
72
894
1
812
290
1 8
12 1
21
1
69
100,
0%
1 89
1 30
3 1
891
303
2019 - 2020KZN TRANSPORT ANNUAL REPORT 187
Econ
omic
cla
ssifi
catio
n
Cur
rent
pay
men
ts
919
168
- (4
6 79
7)87
2 37
1 87
2 37
0
1
100,
0%86
3 25
8 86
3 25
8
C
ompe
nsat
ion
of
empl
oyee
s
672
092
- (2
6 72
9)64
5 36
3 64
5 36
2
1
100,
0%61
2 52
6 61
2 52
6
S
alar
ies
and
wag
es
577
057
- (2
5 35
7)55
1 70
0 55
1 69
9
1
100,
0%52
3 89
1 52
3 89
1
S
ocia
l con
tribu
tions
9
5 03
5
-
(1 3
72)
93 6
63
93 6
63
- 10
0,0%
88 6
35
88 6
35
G
oods
and
ser
vice
s
247
076
- (2
0 06
8)22
7 00
8 22
7 00
8
-
100,
0%25
0 73
2 25
0 73
2
A
dmin
istra
tive
fees
5
28
- 11
0 63
8 63
8
-
100,
0%82
9 82
9
A
dver
tisin
g
64
-
1 65
65
-
100,
0%86
86
M
inor
ass
ets
1 0
05
-
52
3 1
528
1 52
8
-
100,
0%84
1 84
1
A
udit
cost
s: E
xter
nal
3 3
65
-
(493
)2
872
2 87
2
-
100,
0%18
052
18
052
B
ursa
ries:
E
mpl
oyee
s
-
-
-
-
-
-
-
-
-
C
ater
ing:
D
epar
tmen
tal
activ
ities
54
- (5
0)4
4
-
100,
0%
23
23
C
omm
unic
atio
n (G
&S
)
9
493
-
(1 7
21)
7 77
2 7
772
- 10
0,0%
7 70
6 7
706
C
ompu
ter s
ervi
ces
1
5 03
0
-
18 1
06
33 1
36
33 1
36
- 10
0,0%
35 1
13
35 1
13
C
onsu
ltant
s:
Bus
ines
s an
d ad
viso
ry s
ervi
ces
1
2 49
1
-
(5 1
60)
7 33
1 7
331
- 10
0,0%
12 9
38
12 9
38
In
frast
ruct
ure
and
plan
ning
ser
vice
s
-
-
-
-
-
-
-
471
471
La
bora
tory
ser
vice
s
-
-
5
5
5
-
100,
0%
5
5
Sci
entifi
c an
d te
chno
logi
cal
serv
ices
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT for the year ended 31 March 2020
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020 KZN TRANSPORT ANNUAL REPORT188
Le
gal s
ervi
ces
2 8
94
- (1
409
)1
485
1 48
5
-
100,
0%2
429
2 42
9
C
ontra
ctor
s
15
844
- 1
425
17 2
69
17 2
69
- 10
0,0%
16 8
09
16 8
09
A
genc
y an
d su
ppor
t /
outs
ourc
ed s
ervi
ces
-
-
-
-
-
-
-
-
-
Ent
erta
inm
ent
-
-
-
-
-
-
-
-
-
Flee
t ser
vice
s (in
clud
ing
gove
rnm
ent m
otor
tra
nspo
rt)
4
2 23
2
-
(12
957)
29 2
75
29 2
75
- 10
0,0%
39 2
77
39 2
77
H
ousi
ng
-
-
-
-
-
-
-
-
-
In
vent
ory:
Clo
thin
g m
ater
ial a
nd
acce
ssor
ies
78
- 28
10
6 10
6
-
100,
0%
43
43
In
vent
ory:
Far
min
g su
pplie
s
-
-
-
-
-
-
-
-
-
In
vent
ory:
Foo
d an
d fo
od s
uppl
ies
1
40
- (4
1)99
99
-
100,
0%10
9 10
9
In
vent
ory:
Fue
l, oi
l an
d ga
s
-
-
-
-
-
-
-
-
-
In
vent
ory:
Lea
rner
an
d te
ache
r sup
port
mat
eria
l
-
-
-
-
-
-
-
-
-
In
vent
ory:
Mat
eria
ls
and
supp
lies
1
41
- 22
2 36
3 36
3
-
100,
0%16
4 16
4
In
vent
ory:
Med
ical
su
pplie
s
9
-
(9
)
-
-
-
-
-
-
In
vent
ory:
Med
icin
e
-
-
-
-
-
-
-
-
-
M
edsa
s in
vent
ory
inte
rface
-
-
-
-
-
-
-
-
-
Inve
ntor
y: O
ther
su
pplie
s
17
-
- 17
17
-
100,
0%
-
-
Con
sum
able
sup
plie
s
1
239
-
(557
)68
2 68
2
-
100,
0%1
504
1 50
4
APPROPRIATION STATEMENT for the year ended 31 March 2020
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020KZN TRANSPORT ANNUAL REPORT 189
C
onsu
mab
le:
Sta
tione
ry, p
rintin
g an
d of
fice
supp
lies
2
2 66
2
-
(5 2
21)
17 4
41
17 4
41
- 10
0,0%
18 5
95
18 5
95
O
pera
ting
leas
es
51
091
- (2
773
)48
318
48
318
-
100,
0%33
396
33
396
P
rope
rty p
aym
ents
4
7 64
1
-
(5 3
11)
42 3
30
42 3
30
- 10
0,0%
43 6
15
43 6
15
Tr
ansp
ort p
rovi
ded:
D
epar
tmen
tal a
ctiv
ity
-
-
-
-
-
-
-
164
164
Tr
avel
and
su
bsis
tenc
e
17
600
- (5
424
)12
176
12
176
-
100,
0%15
660
15
660
Tr
aini
ng a
nd
deve
lopm
ent
6
99
- (5
27)
172
172
- 10
0,0%
860
860
O
pera
ting
paym
ents
1 6
98
- 97
1 2
669
2 66
9
-
100,
0%1
476
1 47
6
Ve
nues
and
faci
litie
s
1
008
-
(14)
994
994
- 10
0,0%
290
290
R
enta
l and
hiri
ng
53
-
208
261
261
- 10
0,0%
277
277
In
tere
st a
nd re
nt o
n la
nd
-
-
-
-
-
-
-
-
-
In
tere
st (I
ncl.
inte
rest
on
uni
tary
pay
men
ts
(PP
P))
-
-
-
-
-
-
-
-
-
R
ent o
n la
nd
-
-
-
-
-
-
-
-
-
Tr
ansf
ers
and
subs
idie
s
6
364
-
(1 0
69)
5 29
5 5
293
2 10
0,0%
2 65
7 2
657
P
rovi
nces
and
m
unic
ipal
ities
6
69
- (6
)66
3 66
2 1
99,8
%
70
6
70
6
Pro
vinc
es
669
-
(6
)
66
3
66
2
1
99,8
%
70
6
70
6
Pro
vinc
ial R
even
ue
Fund
s
669
-
(6
)
66
3
66
2
1
99,8
%
70
6
70
6
Pro
vinc
ial a
genc
ies
and
fund
s
-
-
-
-
-
-
-
-
-
M
unic
ipal
ities
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT for the year ended 31 March 2020
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020 KZN TRANSPORT ANNUAL REPORT190
M
unic
ipal
ban
k ac
coun
ts
-
-
-
-
-
-
-
-
-
M
unic
ipal
age
ncie
s an
d fu
nds
-
-
-
-
-
-
-
-
-
Dep
artm
enta
l ag
enci
es a
nd
acco
unts
-
-
-
-
-
-
-
-
-
S
ocia
l sec
urity
fund
s
-
-
-
-
-
-
-
-
-
D
epar
tmen
tal
agen
cies
-
-
-
-
-
-
-
-
-
Hig
her e
duca
tion
inst
itutio
ns
-
-
-
-
-
-
-
-
-
Fo
reig
n go
vern
men
ts
and
inte
rnat
iona
l or
gani
satio
ns
-
-
-
-
-
-
-
-
-
P
ublic
cor
pora
tions
an
d pr
ivat
e en
terp
rises
-
-
-
-
-
-
-
-
-
P
ublic
cor
pora
tions
-
-
-
-
-
-
-
-
-
Sub
sidi
es o
n pr
oduc
ts a
nd
prod
uctio
n (p
c)
-
-
-
-
-
-
-
-
-
O
ther
tran
sfer
s to
pu
blic
cor
pora
tions
-
-
-
-
-
-
-
-
-
Priv
ate
ente
rpris
es
-
-
-
-
-
-
-
-
-
S
ubsi
dies
on
prod
ucts
and
pr
oduc
tion
(pe)
-
-
-
-
-
-
-
-
-
O
ther
tran
sfer
s to
pr
ivat
e en
terp
rises
-
-
-
-
-
-
-
-
-
Non
-pro
fit in
stitu
tions
2 2
09
- 79
8 3
007
3 00
7
-
100,
0%
-
-
Hou
seho
lds
3 4
86
- (1
861
)1
625
1 62
4
1
99,9
%1
951
1 95
1
S
ocia
l ben
efits
3 4
86
- (1
861
)1
625
1 62
4
1
99,9
%1
951
1 95
1
APPROPRIATION STATEMENT for the year ended 31 March 2020
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020KZN TRANSPORT ANNUAL REPORT 191
APPROPRIATION STATEMENT for the year ended 31 March 2020
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
O
ther
tran
sfer
s to
ho
useh
olds
-
-
-
-
-
-
-
-
-
Paym
ents
for
capi
tal a
sset
s
25
404
- 23
331
48
735
48
735
-
100,
0%24
845
24
845
B
uild
ings
and
oth
er
fixed
stru
ctur
es
-
-
-
-
-
-
-
-
-
B
uild
ings
-
-
-
-
-
-
-
-
-
Oth
er fi
xed
stru
ctur
es
-
-
-
-
-
-
-
-
-
M
achi
nery
and
eq
uipm
ent
2
5 40
4
-
23 3
31
48 7
35
48 7
35
- 10
0,0%
24 8
45
24 8
45
Tr
ansp
ort e
quip
men
t
22
965
- 23
015
45
980
45
980
-
100,
0%22
617
22
617
O
ther
mac
hine
ry a
nd
equi
pmen
t
2
439
-
316
2 75
5 2
755
- 10
0,0%
2 22
8 2
228
H
erita
ge a
sset
s
-
-
-
-
-
-
-
-
-
S
peci
alis
ed m
ilita
ry
asse
ts
-
-
-
-
-
-
-
-
-
B
iolo
gica
l ass
ets
-
-
-
-
-
-
-
-
-
Land
and
sub
-soi
l as
sets
-
-
-
-
-
-
-
-
-
Sof
twar
e an
d ot
her
inta
ngib
le a
sset
s
-
-
-
-
-
-
-
-
-
Pa
ymen
t for
fin
anci
al a
sset
s
-
-
-
-
-
-
-
25
25
95
0 93
6 -
(24
535)
926
401
926
398
3 10
0,0%
8
90 7
85
890
785
2019 - 2020 KZN TRANSPORT ANNUAL REPORT192
APPROPRIATION STATEMENT for the year ended 31 March 2020
PRO
GRA
MM
E 5:
CO
MM
UN
ITY
BASE
D P
ROG
RAM
MES
2019
/20
2018
/19
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
V
aria
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00Su
b pr
ogra
mm
e
1.PR
OG
RA
MM
E SU
PPO
RT
CO
MM
UN
ITY
BA
SED
13 2
43
-
(934
)12
309
12
307
2 10
0,0%
11 0
77
11 0
77
2.C
OM
MU
NIT
Y D
EVEL
OPM
ENT
1 04
7
-
(483
)56
4 29
5 26
9 52
,3%
3 53
5 3
535
3.IN
NO
VATI
ON
AN
D
EMPO
WER
MEN
T18
236
-
(1 7
18)
16 5
18
16 5
18
- 10
0,0%
29 2
28
29 2
28
4.EP
WP
CO
-OR
DIN
ATIO
N
AN
D M
ON
ITO
RIN
G6
665
-
-
6 66
5
4
74
6 1
91
7,1%
8 76
6 8
766
39 1
91
- (3
135
)36
056
29
594
6
462
82
,1%
52 6
06
52 6
06
Ec
onom
ic c
lass
ifica
tion
C
urre
nt p
aym
ents
39 1
34
-
(3 2
14)
35 9
20
29 4
59
6 4
61
82,0
%50
548
50
548
C
ompe
nsat
ion
of
empl
oyee
s17
462
-
(7 3
57)
10 1
05
10 1
04
1 10
0,0%
8 62
2 8
622
S
alar
ies
and
wag
es15
603
-
(6 8
99)
8 70
4 8
703
1 10
0,0%
7 47
2 7
472
S
ocia
l con
tribu
tions
1 85
9
-
(458
)1
401
1 40
1
-
100,
0%1
150
1 15
0
G
oods
and
ser
vice
s21
672
-
4 14
3 25
815
19
355
6 46
0 75
,0%
41 9
26
41 9
26
A
dmin
istra
tive
fees
26
- 10
4 13
0 13
0
-
100,
0%60
60
A
dver
tisin
g
-
-
-
-
-
-
-
-
-
M
inor
ass
ets
-
-
-
-
-
-
-
-
-
Aud
it co
sts:
Ext
erna
l
-
-
-
-
-
-
-
-
-
B
ursa
ries:
Em
ploy
ees
-
-
-
-
-
-
-
-
-
2019 - 2020KZN TRANSPORT ANNUAL REPORT 193
C
ater
ing:
Dep
artm
enta
l ac
tiviti
es37
-
(37)
-
-
-
-
-
-
C
omm
unic
atio
n (G
&S
)47
-
(47)
-
-
-
-
-
-
C
ompu
ter s
ervi
ces
509
- 85
59
4 59
4
-
100,
0%1
478
1 47
8
C
onsu
ltant
s: B
usin
ess
and
advi
sory
ser
vice
s17
479
-
(3 3
57)
14 1
22
14 1
22
- 10
0,0%
34 4
30
34 4
30
In
frast
ruct
ure
and
plan
ning
ser
vice
s
-
-
-
-
-
-
-
-
-
La
bora
tory
ser
vice
s
-
-
-
-
-
-
-
-
-
S
cien
tific
and
tech
nolo
gica
l ser
vice
s
-
-
-
-
-
-
-
-
-
Le
gal s
ervi
ces
-
-
-
-
-
-
-
-
-
Con
tract
ors
345
- 7
818
8 16
3 1
703
6 46
0 20
,9%
4 32
5 4
325
A
genc
y an
d su
ppor
t /
outs
ourc
ed s
ervi
ces
-
-
-
-
-
-
-
-
-
Ent
erta
inm
ent
-
-
-
-
-
-
-
-
-
Flee
t ser
vice
s (in
clud
ing
gove
rnm
ent m
otor
tra
nspo
rt)
53
- (5
2)1
1
-
100,
0%66
66
H
ousi
ng
-
-
-
-
-
-
-
-
-
In
vent
ory:
Clo
thin
g m
ater
ial a
nd a
cces
sorie
s
-
-
-
-
-
-
-
-
-
In
vent
ory:
Far
min
g su
pplie
s
-
-
-
-
-
-
-
-
-
In
vent
ory:
Foo
d an
d fo
od
supp
lies
-
-
-
-
-
-
-
-
-
Inve
ntor
y: F
uel,
oil a
nd
gas
-
-
-
-
-
-
-
-
-
Inve
ntor
y: L
earn
er a
nd
teac
her s
uppo
rt m
ater
ial
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT for the year ended 31 March 2020
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
Varia
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020 KZN TRANSPORT ANNUAL REPORT194
APPROPRIATION STATEMENT for the year ended 31 March 2020
In
vent
ory:
Mat
eria
ls a
nd
supp
lies
-
-
-
-
-
-
-
-
-
Inve
ntor
y: M
edic
al
supp
lies
-
-
-
-
-
-
-
-
-
Inve
ntor
y: M
edic
ine
-
-
-
-
-
-
-
-
-
Med
sas
inve
ntor
y in
terfa
ce
-
-
-
-
-
-
-
-
-
In
vent
ory:
Oth
er s
uppl
ies
-
-
-
-
-
-
-
-
-
Con
sum
able
sup
plie
s
-
-
-
-
-
-
-
-
-
C
onsu
mab
le: S
tatio
nery
, pr
intin
g an
d of
fice
supp
lies
11
- (6
)5
5 -
100,
0%12
12
O
pera
ting
leas
es49
-
(49)
- -
- -
- -
P
rope
rty p
aym
ents
-
-
-
-
-
-
-
-
-
Tran
spor
t pro
vide
d:
Dep
artm
enta
l act
ivity
943
- (9
43)
-
-
-
-
-
-
Tr
avel
and
sub
sist
ence
1 88
2
-
665
2 54
7 2
547
- 10
0,0%
1 53
5 1
535
Tr
aini
ng a
nd d
evel
opm
ent
-
-
-
-
-
-
-
-
-
Ope
ratin
g pa
ymen
ts39
-
(39)
-
-
-
-
20
20
Ve
nues
and
faci
litie
s25
2
-
1 25
3 25
3
-
100,
0%
-
-
Ren
tal a
nd h
iring
-
-
-
-
-
-
-
-
-
Inte
rest
and
rent
on
land
-
-
-
-
-
-
-
-
-
Inte
rest
(Inc
l. in
tere
st o
n un
itary
pay
men
ts (P
PP
))
-
-
-
-
-
-
-
-
-
R
ent o
n la
nd
-
-
-
-
-
-
-
-
-
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
Varia
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020KZN TRANSPORT ANNUAL REPORT 195
Tr
ansf
ers
and
subs
idie
s
-
- 79
79
78
1
98,7
%6
6
P
rovi
nces
and
m
unic
ipal
ities
-
-
-
-
-
-
-
-
-
Pro
vinc
es
-
-
-
-
-
-
-
-
-
P
rovi
ncia
l Rev
enue
Fun
ds
-
-
-
-
-
-
-
-
-
P
rovi
ncia
l age
ncie
s an
d fu
nds
-
-
-
-
-
-
-
-
-
Mun
icip
aliti
es
-
-
-
-
-
-
-
-
-
M
unic
ipal
ban
k ac
coun
ts
-
-
-
-
-
-
-
-
-
M
unic
ipal
age
ncie
s an
d fu
nds
-
-
-
-
-
-
-
-
-
Dep
artm
enta
l age
ncie
s an
d ac
coun
ts
-
-
-
-
-
-
-
-
-
S
ocia
l sec
urity
fund
s
-
-
-
-
-
-
-
-
-
D
epar
tmen
tal a
genc
ies
-
-
-
-
-
-
-
-
-
Hig
her e
duca
tion
inst
itutio
ns
-
-
-
-
-
-
-
-
-
Fo
reig
n go
vern
men
ts a
nd
inte
rnat
iona
l org
anis
atio
ns
-
-
-
-
-
-
-
-
-
P
ublic
cor
pora
tions
and
pr
ivat
e en
terp
rises
-
-
-
-
-
-
-
-
-
Pub
lic c
orpo
ratio
ns
-
-
-
-
-
-
-
-
-
S
ubsi
dies
on
prod
ucts
and
pr
oduc
tion
(pc)
-
-
-
-
-
-
-
-
-
Oth
er tr
ansf
ers
to p
ublic
co
rpor
atio
ns
-
-
-
-
-
-
-
-
-
P
rivat
e en
terp
rises
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT for the year ended 31 March 2020
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
Varia
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
2019 - 2020 KZN TRANSPORT ANNUAL REPORT196
APPROPRIATION STATEMENT for the year ended 31 March 2020
R’0
00
Adj
uste
d A
ppro
pria
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
Varia
nce
Expe
nditu
re
as %
of fi
nal
appr
opria
tion
Fin
al
App
ropr
iatio
n A
ctua
l Ex
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
S
ubsi
dies
on
prod
ucts
and
pr
oduc
tion
(pe)
-
-
-
-
-
-
-
-
-
Oth
er tr
ansf
ers
to p
rivat
e en
terp
rises
-
-
-
-
-
-
-
-
-
Non
-pro
fit in
stitu
tions
-
-
-
-
-
-
-
-
-
Hou
seho
lds
-
-
79
79
78
1 98
,7%
6
6
S
ocia
l ben
efits
-
-
79
79
78
1 98
,7%
6
6
O
ther
tran
sfer
s to
ho
useh
olds
-
-
-
-
-
-
-
-
-
Paym
ents
for c
apita
l as
sets
57
-
-
57
57
- 10
0,0%
80
80
B
uild
ings
and
oth
er fi
xed
stru
ctur
es
-
-
-
-
-
-
-
-
-
B
uild
ings
-
-
-
-
-
-
-
-
-
Oth
er fi
xed
stru
ctur
es
-
-
-
-
-
-
-
-
-
M
achi
nery
and
equ
ipm
ent
57
-
-
57
57
- 10
0,0%
80
80
Tr
ansp
ort e
quip
men
t
-
-
-
-
-
-
-
-
-
O
ther
mac
hine
ry a
nd
equi
pmen
t57
-
- 57
57
-
100,
0%
80
80
Her
itage
ass
ets
-
-
-
-
-
-
-
-
-
Spe
cial
ised
mili
tary
ass
ets
-
-
-
-
-
-
-
-
-
Bio
logi
cal a
sset
s
-
-
-
-
-
-
-
-
-
La
nd a
nd s
ub-s
oil a
sset
s
-
-
-
-
-
-
-
-
-
S
oftw
are
and
othe
r in
tang
ible
ass
ets
-
-
-
-
-
-
-
-
-
Paym
ent f
or fi
nanc
ial
asse
ts
-
-
-
-
-
-
-
1 97
2
1 9
72
39
191
-
(3 1
35)
36 0
56
2
9 59
4 6
462
82
,1%
52
606
52 6
06
2019 - 2020KZN TRANSPORT ANNUAL REPORT 197
1 Detail of transfers and subsidies as per Appropriation Act (after Virement):
Detail of these transactions can be viewed in the note on Transfers and subsidies and Annexure 1 (A-H) to the Annual Financial Statements.
2 Detail of specifically and exclusively appropriated amounts voted (after Virement):
Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.3 Detail on payments for financial assets
Detail of these transactions per programme can be viewed in the note to Payments for financial assets to the Annual Financial Statements.
4Explanations of material variances from Amounts Voted (after virement):
4,1 Per programme:
Actual Expenditure
Variance Variance as a %
of Final Approp.
R’000 R’000 %
Administration 434 037 8 075 98% Transport Infrastructure 6 115 422 1 637 264 79% Transport Operations 1 812 121 169 100% Transport Regulations 926 398 3 100%Community Based Programmes 29 594 6 462 82%
Programme 2: Transport Infrastructure shows net under-expenditure of R1.614 billion as follows: • Slower than anticipated filling of critical vacant posts attributed to lengthy internal recruitment processes, difficulty in finding suitable candidates, staff exits as well as internal promotions which resulted in further vacancies. • Slow progress with maintenance projects in respect of betterment and gravelling, as well as blading of gravel roads due to the suspension of the Vukuzakhe Emerging Contractor Development Programme used by the department to undertake maintenance projects that resulted from the programme’s non-compliance with Preferential Procurement Policy Framework Act (PPPFA). The department then suspended the programme enable a review into the policy to align the programme to the Construction Industry Development Board (CIDB) and the National Contractor Developing Programme Framework and Guidelines to make it compliant with the PPPFA. • Capital construction projects were significantly underspent as a result of contracts that were terminated due to non-performance by contractors, change in the scope of work due to additional earthworks needed to be done as a result of changes in designs during construction, delays in the awarding of contracts due to SCM related challenges such as large volumes of bid applications and tender appeals, as well as contractors facing financial difficulties and thus not delivering on project milestones. The following are some of the projects affected: • A roll-over of funds into the 2020/21 financial year has been requested in that regard.
Programme name
Programme 3: Transport Operations reflects a net amount of R169 000 against this Programme resulting from savings associated with the non-filling of posts such as computer equipment and office furniture.
Programme name
Programme 5: Community Based Programme shows net under-expenditure of R6.462 million due to the ongoing review of the Vukuzakhe Emerging Contractor Development Programme, as such the mentorship programme for the emerging contractors that was not undertaken.(In the case of surpluses on programmes, a detailed explanation must be given as to whether it is as a result of a saving or underspending.)
NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March 2020
2019 - 2020 KZN TRANSPORT ANNUAL REPORT198
NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March 2020
4,2 Per economic classification:Final
AppropriationActual
Expenditure VarianceVariance as a % of Final Approp.
R’000 R’000 R’000 %
Current expenditure
Compensation of employees 1 503 730 1 503 726 4 100%
Goods and services 4 334 128 4 148 340 185 788 96%
Interest and rent on land 0 0 0 0%
Transfers and subsidies
Provinces and municipalities 5 905 5 904 1 100%
Departmental agencies and accounts 5 251 5 251 0 100%
Higher education institutions 0 0 0 0%
Public corporations and private enterprises 0 0 0 0%
Foreign governments and international organisations
0 0 0 0%
Non-profit institutions 3 007 3 007 0 100%
Households 16 537 16 534 3 100%
Payments for capital assets
Buildings and other fixed structures 3 431 484 1 965 472 1 466 012 57%
Machinery and equipment 285 404 285 240 164 100%
Heritage assets 0 0 0 0%
Specialised military assets 0 0 0 0%
Biological assets 0 0 0 0%
Land and subsoil assets 0 0 0 0%
Software and other intangible assets 1 119 1 119 0 100%
Payments for financial assets 883 883 0 100%
Explanation of variance
4,3 Per conditional grantFinal
AppropriationActual
Expenditure VarianceVariance as a % of Final Approp.
R’000 R’000 R’000 %
Provincial Roads Maintenance Grant 1 882 781 1 882 781
- 100%
Public Transport Operations Grant 1 168 099 1 168 099
- 100%
EPWP Incentive Grant 71 677 74 146
- 100%
Explanation of variance
2019 - 2020KZN TRANSPORT ANNUAL REPORT 199
STATEMENT OF FINANCIAL PERFORMANCEfor the year ended 31 March 2020
2019/20 2018/19 Note R’000 R’000
REVENUEAnnual appropriation 1 10 969 545 10 565 677 Statutory appropriation 2 - - Departmental revenue 3 1 987 394 1 913 566 NRF Receipts - - Aid assistance - -
TOTAL REVENUE 12 956 939 12 479 243
EXPENDITURECurrent expenditureCompensation of employees 5 1 503 725 1 428 296 Goods and services 6 4 171 688 4 321 389 Interest and rent on land 7 - - Aid assistance 4 6 633 - Total current expenditure 5 682 046 5 749 685
Transfers and subsidiesTransfers and subsidies 9 1 412 792 1 416 712 Aid assistance 4 - - Total transfers and subsidies 1 412 792 1 416 712
Expenditure for capital assetsTangible assets 10 2 228 484 3 126 181 Intangible assets 10 - 39 344 Total expenditure for capital assets 2 228 484 3 165 525
Unauthorised expenditure approved without funding 11 - -
Payments for financial assets 8 883 2 385
TOTAL EXPENDITURE 9 324 205 10 334 307
SURPLUS/(DEFICIT) FOR THE YEAR 3 632 734 2 144 936
Reconciliation of Net Surplus/(Deficit) for the yearVoted Funds 1 651 973 236 311
Annual appropriation 1 651 973 233 842 Conditional grants - 2 469
Departmental revenue and NRF Receipts 19 1 987 394 1 913 566 Aid assistance 4 -6 633 -4 941 SURPLUS/(DEFICIT) FOR THE YEAR 3 632 734 2 144 936
2019 - 2020 KZN TRANSPORT ANNUAL REPORT200
STATEMENT OF FINANCIAL POSITIONfor the year ended 31 March 2020
2019/20 2018/19 Note R’000 R’000
ASSETS
Current Assets 330 399 455 280 Unauthorised expenditure 11 - - Cash an cash equivalents 12 246 028 368 828 Other financial assets 13 - - Prepayments and advances 14 826 836 Receivables 15 83 545 85 616 Loans 17 - - Aid assistance prepayments 4 - - Aid assistance receivable 4 - -
Non-Current Assets 3 880 4 305 Investments 16 - - Receivables 15 3 880 4 305 Loans 17 - - Other financial assets 13 - -
TOTAL ASSETS 334 279 459 585
LIABILITIES
Current Liabilities 330 230 455 825 Voted funds to be surrendered to the Revenue Fund 18 151 973 236 311 Departmental revenue and NRF Receipts to be surrendered
to the Revenue Fund 19 143 495 177 699 Bank overdraft 20 - - Payables 21 28 832 29 252 Aid assistance repayable 4 - - Aid assistance unutilised 4 5 930 12 563
Non-Current LiabilitiesPayables 22 - -
TOTAL LIABILITIES 330 230 455 825
NET ASSETS 4 049 3 760
Represented by:Capitalisation reserve - - Recoverable revenue 4 049 3 760 Retained funds - - Revaluation reserves - -
TOTAL 4 049 3 760
2019 - 2020KZN TRANSPORT ANNUAL REPORT 201
STATEMENT OF CHANGE IN ASSETSfor the year ended 31 March 2020
NET ASSETS 2019/20 2018/19 Note R’000 R’000
Capitalisation ReservesOpening balance - - Transfers: Movement in Equity - - Movement in Operational Funds - - Other movements - - Closing balance - -
Recoverable revenueOpening balance 3 760 3 384 Transfers 289 376 Irrecoverable amounts written off 8,3 883 -417 Debts revised -
Debts recovered (included in departmental receipts) -1 985 151 Debts raised 1 391 642 Closing balance 4 049 3 760
Retained fundsOpening balance - -
Transferred from voted funds to be surrendered (Parliament/Legislatures ONLY) - Utilised during the year - Other - Closing balance - -
Revaluation ReservesOpening balance - - Revaluation adjustment (Housing departments) - Transfers - Other - Closing balance - -
TOTAL 4 049 3 760
2019 - 2020 KZN TRANSPORT ANNUAL REPORT202
CASH FLOW STATEMENTfor the year ended 31 March 2020
2019/20 2018/19 Note R’000 R’000
CASH FLOWS FROM OPERATING ACTIVITIESReceipts 11 453 009 12 479 209
Annual appropriated funds received 1,1 9 469 545 10 565 677 Statutory appropriated funds received 2 - - Departmental revenue received 3 1 983 455 1 913 516 Interest received 3,3 9 16 NRF Receipts - - Aid assistance received 4 - -
Net (increase)/ decrease in working capital 1 661 -3 020 Surrendered to Revenue Fund -2 261 648 -2 124 744 Surrendered to RDP Fund/Donor - - Current payments -5 682 046 -5 749 685 Interest paid 7 - - Payments for financial assets -883 -2 385 Transfers and subsidies paid -1 412 792 -1 416 712 Net cash flow available from operating activities 23 2 097 301 3 182 663
CASH FLOWS FROM INVESTING ACTIVITIESDistribution/dividend received 35 34 Payments for capital assets 10 -2 228 484 -3 165 525 Proceeds from sale of capital assets 3,4 3 895 - (Increase)/ decrease in loans - - (Increase)/ decrease in investments - - (Increase)/ decrease in other financial assets - - (Increase)/decrease in non-current receivables 425 - Net cash flows from investing activities -2 224 129 -3 165 491
CASH FLOWS FROM FINANCING ACTIVITIESIncrease/ (decrease) in net assets 289 376 Increase/ (decrease) in non-current payables - - Net cash flows from financing activities 289 376
Net increase/ (decrease) in cash and cash equivalents -126 539 17 548
Cash and cash equivalents at beginning of period 368 828 351 280 Unrealised gains and losses within cash and cash equivalents 3 739 - Cash and cash equivalents at end of period 24 246 028 368 828
2019 - 2020KZN TRANSPORT ANNUAL REPORT 203
ACCOUNTING POLICIESfor the year ended 31 March 2020
Summary of significant accounting policies [Concepts and Principles, Financial Statement Presentation]The financial statements have been prepared in accordance with the following policies, which have been applied con-sistently in all material aspects, unless otherwise indicated. Management has concluded that the financial statements present fairly the department’s primary and secondary information. The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation.Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the finan-cial statements and to comply with the statutory requirements of the Public Finance Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act.
1 BASIS OF PREPARATION
The financial statements have been prepared in accordance with the Modified Cash Standard.
2 GOING CONCERN
The financial statements have been prepared on a going concern basis.
3 PRESENTATION CURRENCY
Amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.
4 ROUNDING
Unless otherwise stated financial figures have been rounded to the nearest one thousand Rand (R’000).
5 FOREIGN CURRENCY TRANSLATION
Cash flows arising from foreign currency transactions are translated into South African Rands using the spot exchange rates prevailing at the date of payment / receipt.
6 COMPARATIVE INFORMATION
6.1 PRIOR PERIOD COMPARATIVE INFORMATION
Prior period comparative information has been presented in the current year’s financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format of the current year’s financial statements.
6.2 CURRENT YEAR COMPARISON WITH BUDGET
A comparison between the approved, final budget and actual amounts for each programme and economic classifica-tion is included in the appropriation statement.
7 REVENUE
7.1 APPROPRIATED FUNDS
Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. stat-utory appropriation).Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the statement of financial performance on the date the adjustments become effective.The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognised as a payable / receivable in the statement of financial position.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT204
7.2 DEPARTMENTAL REVENUE
[REVENUE, GENERAL DEPARTMENTAL ASSETS AND LIABILITIES]Departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the relevant revenue fund, unless stated otherwise.Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the statement of financial position.
7.3 ACCRUED DEPARTMENTAL REVENUE
Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the financial state-ments when:• it is probable that the economic benefits or service potential associated with the transaction will flow to the depart-
ment; and• the amount of revenue can be measured reliably.The accrued revenue is measured at the fair value of the consideration receivable.Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents.Write-offs are made according to the department’s debt write-off policy
8 EXPENDITURE
8.1 COMPENSATION OF EMPLOYEES
8.1.1 SALARIES AND WAGES
Salaries and wages are recognised in the statement of financial performance on the date of payment.
8.1.2 SOCIAL CONTRIBUTIONS
Social contributions made by the department in respect of current employees are recognised in the statement of finan-cial performance on the date of payment. Social contributions made by the department in respect of ex-employees are classified as transfers to households in the statement of financial performance on the date of payment.
8.2 OTHER EXPENDITURE
Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of financial performance on the date of payment. The expense is classified as a capital expense if the total consideration paid is more than the capitalisation threshold.
8.3 ACCRUALS AND PAYABLES NOT RECOGNISED [General Departmental Assets and Liabilities]Accruals and payables not recognised are recorded in the notes to the financial statements at cost at the reporting date.
8.4 LEASES
8.4.1 OPERATING LEASES
Operating lease payments made during the reporting period are recognised as current expenditure in the statement of financial performance on the date of payment.The operating lease commitments are recorded in the notes to the financial statements.
8.4.2 FINANCE LEASES
Finance lease payments made during the reporting period are recognised as capital expenditure in the statement of financial performance on the date of payment.The finance lease commitments are recorded in the notes to the financial statements and are not apportioned be-tween the capital and interest portions. Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of:• cost, being the fair value of the asset; or• the sum of the minimum lease payments made, including any payments made to acquire ownership at the end
ACCOUNTING POLICIESfor the year ended 31 March 2020
2019 - 2020KZN TRANSPORT ANNUAL REPORT 205
ACCOUNTING POLICIESfor the year ended 31 March 2020
of the lease term, excluding interest.
9 AID ASSISTANCE
9.1 AID ASSISTANCE RECEIVED[Revenue, General Departmental Assets and Liabilities]Aid assistance received in cash is recognised in the statement of financial performance when received. In-kind aid as-sistance is recorded in the notes to the financial statements on the date of receipt and is measured at fair value.Aid assistance not spent for the intended purpose and any unutilised funds from aid assistance that are required to be refunded to the donor are recognised as a payable in the statement of financial position.
9.2 AID ASSISTANCE PAID
Aid assistance paid is recognised in the statement of financial performance on the date of payment. Aid assistance payments made prior to the receipt of funds are recognised as a receivable in the statement of financial position.
10 CASH AND CASH EQUIVALENTS
Cash and cash equivalents are stated at cost in the statement of financial position. Bank overdrafts are shown separately on the face of the statement of financial position as a current liability.For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.
11 PREPAYMENTS AND ADVANCES
Prepayments and advances are recognised in the statement of financial position when the department receives or disburses the cash. Prepayments and advances are initially and subsequently measured at cost.
12 LOANS AND RECEIVABLES
Loans and receivables are recognised in the statement of financial position at cost plus accrued interest, where interest is charged, less amounts already settled or written-off. Write-offs are made according to the department’s write-off policy.
13 INVESTMENTS
Investments are recognised in the statement of financial position at cost.
14 FINANCIAL ASSETS
14.1 FINANCIAL ASSETS (NOT COVERED ELSEWHERE)
A financial asset is recognised initially at its cost plus transaction costs that are directly attributable to the acquisition or issue of the financial asset.At the reporting date, a department shall measure its financial assets at cost, less amounts already settled or writ-ten-off, except for recognised loans and receivables, which are measured at cost plus accrued interest, where interest is charged, less amounts already settled or written-off.
14.2 IMPAIRMENT OF FINANCIAL ASSETS
Where there is an indication of impairment of a financial asset, an estimation of the reduction in the recorded carrying value, to reflect the best estimate of the amount of the future economic benefits expected to be received from that asset, is recorded in the notes to the financial statements.
15 PAYABLES[General Departmental Assets and Liabilities]Payables recognised in the statement of financial position are recognised at cost.
2019 - 2020 KZN TRANSPORT ANNUAL REPORT206
16 CAPITAL ASSETS
16.1 IMMOVABLE CAPITAL ASSETS
Immovable assets reflected in the asset register of the department are recorded in the notes to the financial state-ments at cost or fair value where the cost cannot be determined reliably. Immovable assets acquired in a non-exchange transaction are recorded at fair value at the date of acquisition. Immovable assets are subsequently carried in the asset register at cost and are not currently subject to depreciation or impairment.Subsequent expenditure of a capital nature forms part of the cost of the existing asset when ready for use.Additional information on immovable assets not reflected in the assets register is provided in the notes to financial statements.
16.2 MOVABLE CAPITAL ASSETS
Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition. Where the cost of movable capital assets cannot be determined reliably, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.Biological assets are subsequently carried at fair value. Subsequent expenditure that is of a capital nature forms part of the cost of the existing asset when ready for use.
16.3 INTANGIBLE ASSETS
Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition. Internally generated intangible assets are recorded in the notes to the financial statements when the department com-mences the development phase of the project. Where the cost of intangible assets cannot be determined reliably, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.Subsequent expenditure of a capital nature forms part of the cost of the existing asset when ready for use.
16.4 PROJECT COSTS: WORK-IN-PROGRESS
Expenditure of a capital nature is initially recognised in the statement of financial performance at cost when paid. Amounts paid towards capital projects are separated from the amounts recognised and accumulated in work-in-prog-ress until the underlying asset is ready for use. Once ready for use, the total accumulated payments are recorded in an asset register. Subsequent payments to complete the project are added to the capital asset in the asset register. Where the department is not the custodian of the completed project asset, the asset is transferred to the custodian subsequent to completion.
17 PROVISIONS AND CONTINGENTS
17.1 PROVISIONS
Provisions are recorded in the notes to the financial statements when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation and a reliable estimate of the obligation can be made. The provision is measured as the best estimate of the funds required to settle the present obligation at the reporting date.
17.2 CONTINGENT LIABILITIES
Contingent liabilities are recorded in the notes to the financial statements when there is a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department or when there is a present obligation that is
ACCOUNTING POLICIESfor the year ended 31 March 2020
2019 - 2020KZN TRANSPORT ANNUAL REPORT 207
not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably.
17.3 CONTINGENT ASSETS
Contingent assets are recorded in the notes to the financial statements when a possible asset arises from past events, and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department.
17.4 COMMITMENTS
Commitments (other than for transfers and subsidies) are recorded at cost in the notes to the financial statements when there is a contractual arrangement or an approval by management in a manner that raises a valid expectation that the department will discharge its responsibilities thereby incurring future expenditure that will result in the out-flow of cash.
18 UNAUTHORISED EXPENDITURE
Unauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either:• approved by Parliament or the Provincial Legislature with funding and the related funds are received; or• approved by Parliament or the Provincial Legislature without funding and is written off against the appropriation in
the statement of financial performance; or• transferred to receivables for recovery.Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure.
19 FRUITLESS AND WASTEFUL EXPENDITURE
Fruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred. Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or trans-ferred to receivables for recovery.Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.
20 IRREGULAR EXPENDITURE
Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the value of the irregular expenditure incurred unless it is impracticable to determine, in which case reasons therefor are provided in the note. Irregular expenditure is removed from the note when it is either condoned by the relevant authority, transferred to receivables for recovery or not condoned and is not recoverable. Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-rec-ognised when settled or subsequently written-off as irrecoverable.
21 CHANGES IN ACCOUNTING POLICIES, ACCOUNTING ESTIMATES AND ERRORS
Changes in accounting policies that are effected by management have been applied retrospectively in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumu-lative effect of the change in policy. In such instances the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.Changes in accounting estimates are applied prospectively in accordance with MCS requirements.Correction of errors is applied retrospectively in the period in which the error has occurred in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the error. In such cases the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.
ACCOUNTING POLICIESfor the year ended 31 March 2020
2019 - 2020 KZN TRANSPORT ANNUAL REPORT208
22 EVENTS AFTER THE REPORTING DATE
Events after the reporting date that are classified as adjusting events have been accounted for in the financial state-ments. The events after the reporting date that are classified as non-adjusting events after the reporting date have been disclosed in the notes to the financial statements.
23 PRINCIPAL-AGENT ARRANGEMENTS
The department is party to a principal-agent arrangement for [include details here]. In terms of the arrangement the department is the [principal / agent] and is responsible for [include details here]. All related revenues, expenditures, assets and liabilities have been recognised or recorded in terms of the relevant policies listed herein. Additional disclo-sures have been provided in the notes to the financial statements where appropriate.
25 CAPITALISATION RESERVEThe capitalisation reserve comprises of financial assets and/or liabilities originating in a prior reporting period but which are recognised in the statement of financial position for the first time in the current reporting period. Amounts are recognised in the capitalisation reserves when identified in the current period and are transferred to the National/Provincial Revenue Fund when the underlying asset is disposed and the related funds are received.
26 RECOVERABLE REVENUEAmounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recov-erable from a debtor in the current financial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off.
27 RELATED PARTY TRANSACTIONS
A related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party. Related party transactions within the MEC’s portfolio are recorded in the notes to the financial statements when the transaction is not at arm’s length. Key management personnel are those persons having the authority and responsibility for planning, directing and con-trolling the activities of the department. The number of individuals and their full compensation is recorded in the notes to the financial statements.
28 INVENTORIES (EFFECTIVE FROM DATE DETERMINED IN A TREASURY INSTRUCTION)
At the date of acquisition, inventories are recognised at cost in the statement of financial performance.Where inventories are acquired as part of a non-exchange transaction, the inventories are measured at fair value as at the date of acquisition.Inventories are subsequently measured at the lower of cost and net realisable value or where intended for distribution (or consumed in the production of goods for distribution) at no or a nominal charge, the lower of cost and current replacement value.The cost of inventories is assigned by using the weighted average cost basis.
29 PUBLIC-PRIVATE PARTNERSHIPS
Public Private Partnerships are accounted for based on the nature and or the substance of the partnership. The trans-action is accounted for in accordance with the relevant accounting policies.A summary of the significant terms of the PPP agreement, the parties to the agreement, and the date of commence-ment thereof together with the description and nature of the concession fees received, the unitary fees paid, rights and obligations of the department are recorded in the notes to the financial statements.
30 EMPLOYEE BENEFITS
[Provisions and Contingents]The value of each major class of employee benefit obligation (accruals, payables not recognised and provisions) is dis-closed in the Employee benefits note.
ACCOUNTING POLICIESfor the year ended 31 March 2020
2019 - 2020KZN TRANSPORT ANNUAL REPORT 209
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
1
1,1 Annual Appropriation 2019/20 2018/19
Final Appropriation
Actual Funds
Received
Funds not requested/
not received
Final Appropriation
Appropriation Received
Programmes R’000 R’000 R’000 R’000 R’000
ADMINISTRATION 412 788 412 788 - 391 945 391 945
TRANSPORT INFRASTRUCTURE 7 827 234 6 327 234 1 500 000 7 339 038 7 339 038
TRANSPORT OPERATIONS 1 739 396 1 739 396 - 1 891 303 1 891 303
TRANSPORT REGULATION 950 936 950 936 - 890 785 890 785
COMMUNITY BASED PROGRAMMES 39 191 39 191 - 52 606 52 606
Total 10 969 545 9 469 545 1 500 000 10 565 677 10 565 677
Provide an explanation for funds not requested/not received
During the 2019-20 the department has underspent on its allocated budget hence Provincial Treasury did not transfer the full allocation.
2019/20 2018/19
Note R’000 R’000
1,2 Conditional grants**
Total grants received 47 3 125 026 3 009 461
Provincial grants included in Total Grants received - -
( It should be noted that the Conditional grants are included in the amounts per the Final Appropriation in Note 1.1)
2019/20 2018/19
R’000 R’000
2 Statutory Appropriation
Actual Statutory Appropriation received
-
-
2019/20 2018/19
Note R’000 R’000
3 Departmental Revenue
Tax revenue 1 866 422 1 763 535
Sales of goods and services other than capital assets 3,1 89 345 105 916
Fines, penalties and forfeits 3,2 24 687 40 353
Interest, dividends and rent on land 3,3 103 69
Sales of capital assets 3,4 3 895 -
Transactions in financial assets and liabilities 3,5 2 942 3 693
Transfer received 3,6 - -
Total revenue collected 1 987 394 1 913 566
Less: Own revenue included in appropriation 19 - -
Departmental revenue collected 1 987 394 1 913 566
2019 - 2020 KZN TRANSPORT ANNUAL REPORT210
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
3,1Sales of goods and services other than capital assets 3
Sales of goods and services produced by the department 89 345 105 916
Sales by market establishment 5 974 6 110
Administrative fees 78 396 94 574
Other sales 4 975 5 232
Sales of scrap, waste and other used current goods - -
Total 89 345 105 916
2019/20 2018/19
Note R’000 R’000
3,2 Fines, penalties and forfeits 3
Fines 24 687 40 353
Penalties - -
Forfeits - -
Total 24 687 40 353
2019/20 2018/19
Note R’000 R’000
3,3 Interest, dividends and rent on land 3
Interest 9 16
Dividends 35 34
Rent on land 59 19
Total 103 69
2019/20 2018/19
Note R’000 R’000
3,4 Sales of capital assets 3
Tangible assets 3 895 -
Buildings and other fixed structures 41 - -
Machinery and equipment 39 3 895 -
Heritage assets 39 - -
Specialised military assets 39 - -
Land and subsoil assets 41 - -
Biological assets 39 - -
Intangible assets - -
Software 40 - -
Mastheads and publishing titles 40 - -
Patents, licences, copyright, brand names, trademarks 40 - -
Recipes, formulae, prototypes, designs, models 40
-
-
Services and operating rights 40 - -
Total 3 895 -
2019 - 2020KZN TRANSPORT ANNUAL REPORT 211
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
3,5 Transactions in financial assets and liabilities 3
Loans and advances - -
Receivables - -
Forex gain - -
Stale cheques written back - 20
Other Receipts including Recoverable Revenue
2 942 3 673
Gains on GFECRA - -
Total 2 942 3 693
2019/20 2018/19
Note R’000 R’000
3,6 Transfers received 3
Other governmental units - -
Higher education institutions - -
Foreign governments - -
International organisations - -
Public corporations and private enterprises - -
Households and non-profit institutions - -
Total - -
3,7Cash received not recognised (not included in the main note) - 2019/20
Name of entity Amount received
Amount paid to
Revenue Fund Balance
R’000 R’000 R’000
-
-
-
-
-
-
-
-
-
Total -
-
-
Cash received not recognised (not included in the main note) - 2018/19
Name of entity Amount received
Amount paid to
Revenue Fund Balance
R’000 R’000 R’000
- - -
- - -
Total - - -
2019 - 2020 KZN TRANSPORT ANNUAL REPORT212
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
4 Aid Assistance
Opening Balance 12 563 17 504
Prior period error -
As restated 12 563 17 504
Transferred from statement of financial performance -6 633 -4 941
Transferred to/from retained funds
-
-
Paid during the year - -
Closing Balance 5 930 12 563
2019/20 2018/19
Note R’000 R’000
4,1 Analysis of balance by source 4
Aid assistance from RDP - -
Aid assistance from other sources 5 930 12 563
CARA - -
Closing Balance 5 930 12 563
2019/20 2018/19
Note R’000 R’000
4,2 Analysis of balance
Aid assistance receivable - -
Aid assistance prepayments (Not expensed) - -
Aid assistance unutilised 5 930 12 563
Aid assistance repayable - -
Closing balance 4 5 930 12 563
Aid assistance not requested/not received - -
4.2.1 Aid assistance prepayments (expensed) - 2019/20
Amount as at 1 April
2019
Less: Received in the current
year
Add/Less: Other
Add: Current Year prepayments
Amount as at 31 March
2020
R’000 R’000 R’000 R’000 R’000
Goods and services - - - - -
Interest and rent on land - - - - -
Transfers and subsidies - - - - -
Capital assets - - - - -
Other - -
-
-
-
Closing balance - -
-
-
-
2019 - 2020KZN TRANSPORT ANNUAL REPORT 213
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
Aid assistance prepayments (expensed) - 2018/19
Amount as at 1 April
2018
Less: Received in the current
year
Add/Less: Other
Add: Current Year prepayments
Amount as at 31 March
2019
R’000 R’000 R’000 R’000 R’000
Goods and services - - - - -
Interest and rent on land - - - - -
Transfers and subsidies - - - - -
Capital assets - - - - -
Other - - - - -
Closing balance - - - - -
4,3 Prior period error Note 2018/19
R’000
Nature of prior period error
Relating to 20WW/XX (affecting the opening balance) -
-
Relating to 2018/19 -
-
-
-
Total prior period errors -
2019/20 2018/19
Note R’000 R’000
4,4 Aid assistance expenditure per economic classification
Current 6 633
-
Capital 10 - 4 941
Transfers and subsidies - -
Total aid assistance expenditure 6 633 4 941
2019/20 2018/19
Note R’000 R’000
5Compensation of Employees
5,1 Salaries and wages
Basic salary 930 892 876 714
Performance award 25 419 25 205
Service Based 5 409 3 074
Compensative/circumstantial 142 075 130 072
Periodic payments 18 540 21 528
Other non-pensionable allowances 176 213 178 076
Total 1 298 548 1 234 669
2019 - 2020 KZN TRANSPORT ANNUAL REPORT214
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
5,2 Social Contributions
Employer contributions
Pension 110 292 105 065
Medical 94 057 87 900
UIF 37 74
Bargaining council 357 339
Official unions and associations - -
Insurance 434 249
Total 205 177 193 627
Total compensation of employees 1 503 725 1 428 296
Average number of employees 3 955 3 966
2019/20 2018/19
Note R’000 R’000
6 Goods and services
Administrative fees 2 098 3 484
Advertising 7 848 7 732
Minor assets 6,1 2 721 4 689
Bursaries (employees) 1 045 958
Catering 3 551 5 901
Communication 31 963 29 312
Computer services 6,2 190 316 169 528
Consultants: Business and advisory services 17 744 234 017
Infrastructure and planning services 859 108 375 413
Laboratory services 161 170
Scientific and technological services - -
Legal services 19 576 21 972
Contractors 1 982 804 2 384 877
Agency and support / outsourced services 2 596 4 451
Entertainment - -
Audit cost – external 6,3 14 213 27 757
Fleet services 232 670 198 304
Inventory 6,4 116 552 99 503
Consumables 6,5 27 425 34 443
Housing
-
-
Operating leases 57 028 58 123
Property payments 6,6 163 008 176 939
Rental and hiring 876 1 197
Transport provided as part of the departmental activities 350 273 395 870
Travel and subsistence 6,7 58 981 72 628
Venues and facilities 11 591 5 141
Training and development 10 203 4 537
Other operating expenditure 6,8 7 337 4 443
Total 4 171 688 4 321 389
2019 - 2020KZN TRANSPORT ANNUAL REPORT 215
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
6,1 Minor assets 6
Tangible assets 2 721 4 689
Buildings and other fixed structures - -
Biological assets - -
Heritage assets - -
Machinery and equipment 2 721 4 689
Transport assets - -
Specialised military assets - -
Intangible assets - -
Software - -
Mastheads and publishing titles - -
Patents, licences, copyright, brand names, trademarks - -
Recipes, formulae, prototypes, designs, models - -
Services and operating rights - -
Total 2 721 4 689
2019/20 2018/19
Note R’000 R’000
6,2 Computer services 6
SITA computer services 23 896 23 429
External computer service providers 166 420 146 099
Total 190 316 169 528
2019/20 2018/19
Note R’000 R’000
6,3 Audit cost – external 6
Regularity audits 5 814 8 814
Performance audits - -
Investigations 4 670 18 052
Environmental audits - -
Computer audits 3 729 891
Total 14 213 27 757
2019/20 2018/19
Note R’000 R’000
6,4 Inventory 6
Clothing material and accessories 9 604 7 333
Farming supplies -
-
Food and food supplies 387
449
Fuel, oil and gas 84 932 73 835
Learning and teaching support material
-
-
Materials and supplies 21 629 17 886
Medical supplies - -
2019 - 2020 KZN TRANSPORT ANNUAL REPORT216
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
Medicine - -
Medsas inventory interface -
-
Other supplies 6.4.1 - -
Total 116 552 99 503
6.4.1 Other Supplies
Ammunition and security supplies - -
Assets for distribution - -
Machinery and equipment - -
School furniture - -
Sports and recreation - -
Library material - -
Other assets for distribution - -
Other - -
Total - -
2019/20 2018/19
Note R’000 R’000
6,5 Consumables 6
Consumable supplies 4 445 9 366
Uniform and clothing 674 4 921
Household supplies 3 375 2 940
Building material and supplies
-
-
Communication accessories 17 -
IT consumables 266 917
Other consumables 113 588
Stationery, printing and office supplies 22 980 25 077
Total 27 425 34 443
2019/20 2018/19
Note R’000 R’000
6,6 Property payments 6
Municipal services 35 727 35 360
Property management fees - -
Property maintenance and repairs 51 975 76 712
Other 75 306 64 867
Total 163 008 176 939
2019/20 2018/19
Note R’000 R’000
6,7 Travel and subsistence 6
Local 58 657 72 445
Foreign 324 183
Total 58 981 72 628
2019 - 2020KZN TRANSPORT ANNUAL REPORT 217
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
6,8 Other operating expenditure 6
Professional bodies, membership and subscription fees
-
-
Resettlement costs 302 1 014
Other 7 035 3 429
Total 7 337 4 443
2019/20 2018/19
Note R’000 R’000
7 Interest and Rent on Land
Interest paid - -
Rent on land - -
Total - -
2019/20 2018/19
Note R’000 R’000
8 Payments for financial assets
Material losses through criminal conduct - 1 968
Theft 8,4 - 1 968
Other material losses 8,1 - -
Purchase of equity - -
Extension of loans for policy purposes - -
Other material losses written off 8,2 - -
Debts written off 8,3 883 417
Forex losses 8,5 - -
Debt take overs - -
Losses on GFECRA - -
Total 883 2 385
2019/20 2018/19
Note R’000 R’000
8,1 Other material losses 8
Nature of other material losses
(Group major categories, but list material items)
IncidentDisciplinary Steps taken/ Criminal proceedings
-
-
-
Total - -
2019 - 2020 KZN TRANSPORT ANNUAL REPORT218
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
8,2Other material losses written off 8
Nature of losses
(Group major categories, but list material items)
-
-
-
Total
-
-
2019/20 2018/19
Note R’000 R’000
8,3 Debts written off 8
Nature of debts written off
(Group major categories, but list material items: (debt written off relating to irregular expenditure, debt written off relating to recoverable revenue and other debts written off must be listed.)
Irregular expenditure written off
-
Total
-
-
Recoverable revenue written off
-
-
-
Total - -
Other debt written off
Employee Debt
355
150
-
Zibambele
528
267
-
Total 883 417
2019 - 2020KZN TRANSPORT ANNUAL REPORT 219
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
Total debt written off 883 417
2019/20 2018/19
Note R’000 R’000
8,4 Details of theft 8
Nature of theft
(Group major categories, but list material items)
Fraudulent payment (2004-2005)
- 1 968
-
Total - 1 968
2019/20 2018/19
Note R’000 R’000
8,5 Forex losses 8
Nature of losses
(Group major categories, but list material items)
-
-
Total -
-
2019/20 2018/19
Note R’000 R’000
9 Transfers and Subsidies
Provinces and municipalities 48, 49 5 904 6 172
Departmental agencies and accounts
ANNEX-URE 1A 5 251 4 564
Higher education institutions
-
-
Foreign governments and international organisations
-
-
Public corporations and private enterprises
ANNEX-URE 1B 1 382 096 1 390 894
Non-profit institutions ANNEX-URE 1C 3 006
-
Households ANNEX-URE 1D 16 535 15 082
Total 1 412 792 1 416 712
2019 - 2020 KZN TRANSPORT ANNUAL REPORT220
2019/20 2018/19
Note R’000 R’000
10 Expenditure for capital assets
Tangible assets 2 228 484 3 126 181
Buildings and other fixed structures 41 1 943 241 2 935 171
Heritage assets39,41
-
-
Machinery and equipment 39 285 243 191 010
Specialised military assets39
-
-
Land and subsoil assets41
-
-
Biological assets39
-
-
Intangible assets40
- 39 344
Software -
-
Mastheads and publishing titles -
-
Patents, licences, copyright, brand names, trademarks
- 39 344
Recipes, formulae, prototypes, designs, models -
-
Services and operating rights -
-
Total 2 228 484 3 165 525
The following amounts have been included as project costs in Expenditure for capital assets:
Compensation of employees -
-
Goods and services 16 577 37 094
Total 16 577 37 094
10,1Analysis of funds utilised to acquire capital assets - 2019/20
Voted Funds
Aid assistance TOTAL
R’000 R’000 R’000
Tangible assets2 228 484
- 2 228 484
Buildings and other fixed structures 1 943 241
- 1 943 241
Heritage assets -
-
-
Machinery and equipment 285 243 - 285 243
Specialised military assets -
-
-
Land and subsoil assets -
-
-
Biological assets -
-
-
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019 - 2020KZN TRANSPORT ANNUAL REPORT 221
Intangible assets -
-
-
Software -
-
-
Mastheads and publishing titles
-
-
-
Patents, licences, copyright, brand names, trademarks
-
-
-
Recipes, formulae, prototypes, designs, models
-
-
-
Services and operating rights
-
-
-
Total 2 228 484 - 2 228 484
10,2Analysis of funds utilised to acquire capital assets - 2018/19
Voted Funds
Aid assistance TOTAL
R’000 R’000 R’000
Tangible assets3 121 240 4 941
3 126 181
Buildings and other fixed structures 2 935 171
- 2 935 171
Heritage assets -
-
-
Machinery and equipment 186 069 4 941 191 010
Specialised military assets -
-
-
Land and subsoil assets -
-
-
Biological assets -
-
-
Intangible assets 39 344
- 39 344
Software -
-
-
Mastheads and publishing titles
-
-
-
Patents, licences, copyright, brand names, trademarks
39 344
- 39 344
Recipes, formulae, prototypes, designs, models
-
-
-
Services and operating rights
-
-
-
-
-
Total 3 160 584 4 941 3 165 525
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019 - 2020 KZN TRANSPORT ANNUAL REPORT222
2019/20 2018/19
10,3Finance lease expenditure included in Expenditure for capital assets R’000 R’000
Tangible assets
Buildings and other fixed structures
-
Heritage assets -
Machinery and equipment -
Specialised military assets -
Land and subsoil assets -
Biological assets -
Total - -
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
11Unauthorised Expenditure
11,1Reconciliation of unauthorised expenditure
Opening balance
- -
Prior period error 11,5 -
As restated
- -
Unauthorised expenditure - discovered in the current year (as restated)
- -
Less: Amounts approved by Parliament/Legislature with funding
- -
Less: Amounts approved by Parliament/Legislature without funding and derecognised
- -
Current - -
Capital - -
Transfers and subsidies - -
-
Less: Amounts recoverable 15 - -
Less: Amounts written off - -
Closing balance - -
Analysis of closing balance R’000 R’000
Unauthorised expenditure awaiting authorisation
- -
Unauthorised expenditure approved without funding and not derecognised
- -
Total
- -
2019 - 2020KZN TRANSPORT ANNUAL REPORT 223
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
11,2Analysis of unauthorised expenditure awaiting authorisation per economic classification R’000 R’000
Current - -
Capital - -
Transfers and subsidies - -
Total - -
2019/20 2018/19
11,3Analysis of unauthorised expenditure awaiting authorisation per type
R’000 R’000
Unauthorised expenditure relating to overspending of the vote or a main division within the vote
- -
Unauthorised expenditure incurred not in accordance with the purpose of the vote or main division
- -
Total - -
11,4Details of unauthorised expenditure - current year 2019/20
Incident Disciplinary steps taken/criminal
proceedings R’000
Total -
11,5 Prior period error Note 2018/19
R’000
Nature of prior period error
Relating to 20WW/XX (affecting the opening balance) -
-
Relating to 2018/19 -
-
Total -
2019/20 2018/19
Note R’000 R’000
12Cash and Cash Equivalents
Consolidated Paymaster General Account 243 431 366 407
Cash receipts 2 569 2 393
Disbursements - -
Cash on hand 28 28
Investments (Domestic) - -
Investments (Foreign) - -
Total 246 028 368 828
2019 - 2020 KZN TRANSPORT ANNUAL REPORT224
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
13 Other Financial Assets
Current
Local
- -
Total - -
Foreign
Total - -
Total Current other financial assets
- -
2019/20 2018/19
Note R’000 R’000
Non-Current
Local
- -
Total -
-
Foreign
- -
Total - -
Total Non-Current other financial assets
- -
2019/20 2018/19
Note R’000 R’000
14Prepayments and Advances
Staff advances - -
Travel and subsistence 826 836
Prepayments (Not expensed) 14,2
- -
Advances paid (Not expensed) 14,1
- -
SOCPEN advances
- -
Total 826 836
2019 - 2020KZN TRANSPORT ANNUAL REPORT 225
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
14,1Advances paid (Not expensed)
Note
Balance as at 1 April 2019
Less: Amount
expensed in current year
Add/Less: Other
Add: Current
Year advances
Balance as at 31 March 2020
14 R’000 R’000 R’000 R’000 R’000
National departments-
- - - -
Provincial departments-
- - - -
Public entities-
- - - -
Other institutions
- -
- - -
Total-
- - - -
Note
Balance as at 1 April 2018
Less: Amount
expensed in current year
Add/Less: Other
Add: Current
Year advances
Balance as at 31 March 2019
Advances paid (Not expensed) 14 R’000 R’000 R’000 R’000 R’000
National departments - - - - -
Provincial departments - - - - -
Public entities - - - - -
Other institutions - - - - -
Total - - - - -
14,2Prepayments (Not expensed)
Note
Balance as at 1 April 2019
Less: Amount
expensed in current year
Add/Less: Other
Add: Cur-rent Year prepay-ments
Balance as at 31 March 2020
14 R’000 R’000 R’000 R’000 R’000
Listed by economic classification
Goods and services - - - - -
Interest and rent on land - - - - -
Transfers and subsidies - - - - -
Capital assets - - - - -
Other - - - - -
Total - - - - -
2019 - 2020 KZN TRANSPORT ANNUAL REPORT226
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
Note
Balance as at 1 April 2018
Less: Amount
expensed in current year
Add/Less: Other
Add: Cur-rent Year prepay-ments
Balance as at 31 March 2019
Prepayments (Not expensed) 14 R’000 R’000 R’000 R’000 R’000
Listed by economic classification
Goods and services - - - - -
Interest and rent on land - - - - -
Transfers and subsidies - - - - -
Capital assets - - - - -
Other - - - - -
Total - - - - -
14,3 Prepayments (Expensed)
‘Bal-ance
as at 1 April 2019
Less: Received in the current
year
Add/Less: Other
Add: Cur-rent Year prepay-ments
Amount as at 31 March 2020
R’000 R’000 R’000 R’000 R’000
Listed by economic classification
Goods and services - - - - -
Interest and rent on land - - - - -
Transfers and subsidies - - - - -
Capital assets - - - - -
Other - - - - -
Total - - - - -
‘Bal-ance
as at 1 April 2018
Less: Received in the current
year
Add/Less: Other
Add: Cur-rent Year prepay-ments
Amount as at 31 March 2019
Prepayments (Expensed) R’000 R’000 R’000 R’000 R’000
Listed by economic classification
Goods and services - - - - -
Interest and rent on land - - - - -
Transfers and subsidies - - - - -
Capital assets - - - - -
Other - - - - -
Total - - - - -
2019 - 2020KZN TRANSPORT ANNUAL REPORT 227
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
14,4Advances paid (Expensed)
Balance as at 1 April 2019
Less: Received in the current
year
Add/Less: Other
Add: Current
Year advances
Amount as at 31 March 2020
R’000 R’000 R’000 R’000 R’000
National departments -
- - - -
Provincial departments - - - - -
Public entities - - - - -
Other institutions - - - - -
Total - - - - -
Balance as at 1 April 2018
Less: Received in the current
year
Add/Less: Other
Add: Current
Year advances
Amount as at 31 March 2019
Advances paid (Expensed) R’000 R’000 R’000 R’000 R’000
National departments - - - - -
Provincial departments - - - - -
Public entities - - - - -
Other institutions - - - - -
Total - - - - -
2019/20 2018/19
Current Non-current Total
Current Non-current
Total
Note R’000 R’000 R’000 R’000 R’000 R’000
15 Receivables
Claims recoverable 15,1
72 073
- 72 073 84 024
- 84 024
Trade receivables 15,2 -
-
- -
- -
Recoverable expenditure
15,3 -
-
- 9
- 9
Staff debt 15,4 1 212 3 880 5 092 807 4 305 5 112
Fruitless and wasteful expenditure
15,6 310
-
310 -
- -
Other receivables 15,5 9 950 - 9 950 776 -
Total 83 545 3 880 87 425 85 616 4 305 89 921
2019 - 2020 KZN TRANSPORT ANNUAL REPORT228
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
15,1 Claims recoverable 15
National departments 11 124 11 361
Provincial departments 55 102 60 958
Foreign governments - -
Public entities 5 847 11 705
Private enterprises - -
Higher education institutions
- -
Households and non-profit institutions
- -
Local governments
- -
Total 72 073 84 024
2019/20 2018/19
Note R’000 R’000
15,2Trade receivables 15
(Group major categories, but list material items)
- -
- -
- -
Total - -
2019/20 2018/19
Note R’000 R’000
15,3Recoverable expenditure (disallowance accounts) 15
(Group major categories, but list material items)
Online Travel Account - 9
- -
- -
Total - 9
2019/20 2018/19
Note R’000 R’000
15,4 Staff debt 15
(Group major categories, but list material items)
Breach of Contract - 97
In-Service Debts 2 076 2 160
Out-of-Service Debts 2 103 1 966
Tax Debt 335 365
Private Entities 578 524
Total 5 092 5 112
2019 - 2020KZN TRANSPORT ANNUAL REPORT 229
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
15,5 Other receivables 15
(Group major categories, but list material items)
Dishonoured Cheque 66 447
Sal: reversal 699 -
Online Travel Control Account 9 146 -
Other 39 329
- -
Total 9 950 776
2019/20 2018/19
Note R’000 R’000
15,6Fruitless and wasteful expenditure 15
Opening balance - -
Less amounts recovered - -
Less amounts written off - -
Transfers from note 32 Fruitless and Wasteful expenditure
310 -
Interest - -
Total 310 -
2019/20 2018/19
Note R’000 R’000
15,7 Impairment of receivables
Estimate of impairment of receivables
- -
Total - -
2019/20 2018/19
Note R’000 R’000
16 Investments
Non-Current
Shares and other equity
(List investments at cost)
- -
- -
Total - -
2019 - 2020 KZN TRANSPORT ANNUAL REPORT230
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
Securities other than shares Annex 2A
(List investments at cost)
- -
- -
Total - -
Total non-current
- -
2019/20 2018/19
Note R’000 R’000
Analysis of non current investments
Opening balance - -
Additions in cash - -
Disposals for cash - -
Non-cash movements - -
Closing balance - -
2019/20 2018/19
Note R’000 R’000
16,1Impairment of investments
Estimate of impairment of investments -
Total - -
2019/20 2018/19
Note R’000 R’000
17 Loans
Public corporations - -
Higher education institutions - -
Foreign governments - -
Private enterprises - -
Non-profit institutions - -
Staff loans - -
Total - -
2019 - 2020KZN TRANSPORT ANNUAL REPORT 231
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
Analysis of Balance
Opening balance - -
New Issues - -
Repayments - -
Write-offs - -
Closing balance - -
2019/20 2018/19
Note R’000 R’000
17,1 Impairment of loans
Estimate of impairment of loans
-
-
Total - -
2019/20 2018/19
Note R’000 R’000
18Voted Funds to be Surrendered to the Revenue Fund
Opening balance 236 311 250 000
Prior period error 18,2 -
As restated 236 311 250 000
Transfer from statement of financial performance (as restated) 1 651 973 236 311
Add: Unauthorised expenditure for current year 11 - -
Voted funds not requested/not received 1,1 -1 500 000 -
Transferred to retained revenue to defray excess expenditure (Parliament/Legislatures ONLY) 18,1
- -
Paid during the year -236 311 -250 000
Closing balance 151 973 236 311
Include discussion where deemed relevant
2019/20 2018/19
Note R’000 R’000
18,1Voted funds/(Excess expenditure) transferred to the retained funds (Parliament/Legislatures ONLY) 18
Opening balance -
Transfer from the statement of financial performance -
Transfer from Departmental Revenue to defray excess expenditure 19 -
Closing balance - -
Include discussion where deemed relevant
2019 - 2020 KZN TRANSPORT ANNUAL REPORT232
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
18,2 Prior period error Note 2018/19
R’000
Nature of prior period error 18
Relating to 20WW/XX (affecting the opening balance) -
Relating to 2018/19 -
Total -
Include discussion where deemed relevant
2019/20 2018/19
Note R’000 R’000
19Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund
Opening balance 181 438 138 877
Prior period error -
As restated 19,1 181 438 138 877
Transfer from Statement of Financial Performance (as restated) 1 987 394 1 917 305
Own revenue included in appropriation - -
Transfer from aid assistance 4 - -
Transfer to voted funds to defray expenditure (Parliament/Legislatures ONLY) 18,1
- -
Paid during the year -2 025 337 -1 874 744
Closing balance 143 495 181 438
19,1Prior period error Note 2018/19
R’000
Nature of prior period error 19
Relating to 20WW/XX (affecting the opening balance) -
-
-
Relating to 2018/19 19 -
-
Total -
2019/20 2018/19
Note R’000 R’000
20 Bank Overdraft
Consolidated Paymaster General Account
-
-
Fund requisition account - -
Overdraft with commercial banks (Local) - -
Overdraft with commercial banks (Foreign) - -
Total - -
2019 - 2020KZN TRANSPORT ANNUAL REPORT 233
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
21 Payables - current
Amounts owing to other entities -
-
Advances received
21,1 8 470 9 876
Clearing accounts 21,2 7 418 7 418
Other payables 21,3 12 944 11 958
Total 28 832 29 252
2019/20 2018/19
Note R’000 R’000
21,1 Advances received 21
National departments Annex 7 -
-
Provincial departments Annex 7 - -
Public entities Annex 7 8 470 9 876
Other institutions Annex 7 - -
Total 8 470 9 876
2019/20 2018/19
Note R’000 R’000
21,2 Clearing accounts 21
(Identify major categories, but list material amounts)
Exchequer Grant Account 7 418 7 418
-
-
-
-
-
-
Total 7 418 7 418
2019/20 2018/19
Note R’000 R’000
21,3 Other payables 21
(Identify major categories, but list material amounts)
- - -
Sal: ACB Recalls 161 8
Sal: Medical Aid 16 23
Sal: Income Tax 2 523 1 188
Traffic fines from court incorrectly paid to the department 9 490 9 490
Other 754 1 249
- -
- -
Total 12 944 11 958
2019 - 2020 KZN TRANSPORT ANNUAL REPORT234
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
One to two years
Two to three years
More than three years
Total Total
Note R’000 R’000 R’000 R’000 R’000
22 Payables – non-current
Amounts owing to other entities
- - - - -
Advances received 22,1 - - - - -
Other payables 22,2 - - - - -
Total - - - - -
2019/20 2018/19
Note R’000 R’000
22,1 Advances received 22
National departments Annex 7 -
-
Provincial departments Annex 7 -
-
Public entities Annex 7 -
-
Other institutions Annex 7 -
-
Total -
-
2019/20 2018/19
Note R’000 R’000
22,2 Other payables 22
(Identify major categories, but list material amounts)
Total -
-
2019/20 2018/19
Note R’000 R’000
23 Net cash flow available from operating activities
Net surplus/(deficit) as per Statement of Financial Performance
3 632 734 2 144 936
Add back non cash/cash movements not deemed operating activities
-1 535 433 1 037 727
(Increase)/decrease in receivables 2 071 -11 184
(Increase)/decrease in prepayments and advances
10 -21
(Increase)/decrease in other current assets - -
Increase/(decrease) in payables – current -420 8 185
Proceeds from sale of capital assets -3 895 -
Proceeds from sale of investments -35 -34
(Increase)/decrease in other financial assets - -
Expenditure on capital assets 2 228 484 3 165 525
Surrenders to Revenue Fund -2 261 648 -2 124 744
Surrenders to RDP Fund/Donor - -
2019 - 2020KZN TRANSPORT ANNUAL REPORT 235
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
Voted funds not requested/not received -1 500 000 -
Own revenue included in appropriation - -
Other non-cash items - -
Net cash flow generated by operating activities
2 097 301 3 182 663
2019/20 2018/19
Note R’000 R’000
24 Reconciliation of cash and cash equivalents for cash flow purposes
Consolidated Paymaster General account 243 431 366 407
Fund requisition account - -
Cash receipts 2 569 2 393
Disbursements - -
Cash on hand 28 28
Cash with commercial banks (Local) - -
Cash with commercial banks (Foreign) - -
Total 246 028 368 828
2019/20 2018/19
Note R’000 R’000
25 Contingent liabilities and contingent assets
25,1 Contingent liabilities
Liable to Nature
Motor vehicle guarantees Employees Annex 2A - -
Housing loan guarantees Employees Annex 2A 3 3
Other guarantees Annex 2A - -
Claims against the department Annex 2B 289 079 235 416
Intergovernmental payables (unconfirmed balances)
Annex 4 7 055 -
Environmental rehabilitation liability Annex 2B - -
Other Annex 2B - -
Total 296 137 235 419
Contingent assets 2019/20 2018/19
Nature of contingent asset Note R’000 R’000
- -
Total - -
2019/20 2018/19
Note R’000 R’000
26 Capital commitments
Specify class of asset
Other Fixed Structures 6 576 731 3 344 196
- -
Total 6 576 731 3 344 196
2019 - 2020 KZN TRANSPORT ANNUAL REPORT236
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
R’000 R’000
27 Accruals and payables not recognised
27,1 Accruals
Listed by economic classification 30 days 30+ days Total Total
Goods and services
123 644 -
123 644
17 101
Interest and rent on land - - - -
Transfers and subsidies 1 010 - 1 010 16
Capital assets 212 992 - 212 992 1 198
Other 160 375 - 160 375 -
Total 498 021 - 498 021 18 315
2019/20 2018/19
Listed by programme level Note R’000 R’000
Administration 36 366 38
Transport Ifrastructure 198 244 17 477
Transport Operations 2 345 -
Transport Regulations 261 066 624
Community Based Programme - 176
Total 498 021 18 315
27,2 Payables not recognised
Listed by economic classification
30 days 30+ days Total Total
Goods and services 28 640 - 28 640 77 320
Interest and rent on land - - - -
Transfers and subsidies - - - 783
Capital assets - - - 190 932
Other - - -
Total 28 640 - 28 640 269 035
2019/20 2018/19
Listed by programme level Note R’000 R’000
Administration - 16 626
Transport Ifrastructure 28 640 242 779
Transport Operations - 1 529
Transport Regulations - 1 724
Community Based Programme - 6 377
Total 28 640 269 035
2019/20 2018/19
Included in the above totals are the following:
Note R’000 R’000
Confirmed balances with departments Annex 4 - 3 720
Confirmed balances with other government entities Annex 4 - -
Total - 3 720
2019 - 2020KZN TRANSPORT ANNUAL REPORT 237
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
28 Employee benefits
Leave entitlement 76 726 70 979
Service bonus 35 777 34 430
Performance awards - -
Capped leave 72 763 75 255
Other - -
Total 185 266 180 664
29 Lease commitments
29,1 Operating leases
2019/20 Spe-cialised military assets
Land Buildings and other
fixed struc-tures
Machinery and
equipment
Total
R’000 R’000 R’000 R’000 R’000
Not later than 1 year - 93 96 - 189
Later than 1 year and not later than 5 years
- 157 209 - 366
Later than five years - - - - -
Total lease commitments - 250 305 - 555
2018/19 Spe-cialised military assets
Land Buildings and other
fixed struc-tures
Machinery and
equipment
Total
R’000 R’000 R’000 R’000 R’000
Not later than 1 year - 88 90 466 644
Later than 1 year and not later than 5 years
- 265 288 - 553
Later than five years - - - - -
Total lease commitments - 353 378 466 1 197
2019/20 2018/19
R’000 R’000
Rental earned on sub-leased assets
3 -
-
Total - -
2019 - 2020 KZN TRANSPORT ANNUAL REPORT238
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
29,2 Finance leases
2019/20 Spe-cialised military assets
Land Buildings and other
fixed struc-tures
Machinery and
equipment
Total
R’000 R’000 R’000 R’000 R’000
Not later than 1 year - - - 1 847 1 847
Later than 1 year and not later than 5 years
- - - 799 799
Later than five years - - - - -
Total lease commitments - - - 2 646 2 646
2018/19 Spe-cialised military assets
Land Buildings and other
fixed struc-tures
Machinery and
equipment
Total
R’000 R’000 R’000 R’000 R’000
Not later than 1 year - - - 1 173 1 173
Later than 1 year and not later than 5 years
- - - 301 301
Later than five years - - - - -
Total lease commitments - - - 1 474 1 474
This note excludes leases relating to public private partnerships as they are separately disclosed to note no. 35.
2019/20 2018/19
R’000 R’000
Rental earned on sub-leased assets
3 -
Total -
-
29,3 Operating lease future revenue
2019/20 Spe-cialised military assets
Land Buildings and other
fixed struc-tures
Machinery and
equipment
Total
R’000 R’000 R’000 R’000 R’000
Not later than 1 year -
- -
-
-
Later than 1 year and not later than 5 years
-
- -
-
-
Later than five years -
- -
-
-
Total operating lease revenue receivable
-
- -
-
-
2019 - 2020KZN TRANSPORT ANNUAL REPORT 239
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2018/19 Spe-cialised military assets
Land Buildings and other
fixed struc-tures
Machinery and
equipment
Total
R’000 R’000 R’000 R’000 R’000
Not later than 1 year - - - - -
Later than 1 year and not later than 5 years
-
- -
-
-
Later than five years - - - - -
Total operating lease revenue receivable
- - - - -
2019/20 2018/19
Note R’000 R’000
30 Accrued departmental revenue
Tax revenue - -
Sales of goods and services other than capital assets
- -
Fines, penalties and forfeits 65 409 36 412
Interest, dividends and rent on land - -
Sale of capital assets - -
Transactions in financial assets and liabilities - -
Transfers received - -
Other - -
Total 65 409 36 412
2019/20 2018/19
Note R’000 R’000
30,1 Analysis of accrued departmental revenue
Opening balance 36 412 42 710
Less: Amounts received - -
Less: Services received in lieu of cash - -
Add: Amounts recognised 265 286 606 883
Less: Amounts written-off/reversed as irrecoverable 236 289 613 181
Less: Amounts transferred to receivables for recovery - -
Closing balance 65 409 36 412
This is calculated on an average of the percentage of fines collected against fines outstanding over the past four financial years = 6,88%
2019/20 2018/19
R’000 R’000
30,2 Accrued department revenue written off
Nature of losses
(Group major categories, but list material items)
- -
Traffic Fines 236 286 613 181
Total 236 286 613 181
2019 - 2020 KZN TRANSPORT ANNUAL REPORT240
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
30,3 Impairment of accrued departmental revenue
Estimate of impairment of accrued departmental revenue
- -
Total - -
2019/20 2018/19
Note R’000 R’000
31 Irregular expenditure
31,1Reconciliation of irregular expenditure
Opening balance 17 189 095 10 704 269
Prior period error 3 112 593
As restated 17 189 095 13 816 862
Add: Irregular expenditure - relating to prior year 31,2 -
Add: Irregular expenditure - relating to current year 31,2 2 393 469 3 372 233
Less: Prior year amounts condoned 31,3 -1 137 741 -
Less: Current year amounts condoned 31,3 -603 694 -
Less: Prior year amounts not condoned and removed 31,5 -
Less: Current year amounts not condoned and removed 31,5 -
Less: Amounts recoverable (current and prior year) 15 -
Less: Amounts written off 31,6 -
Closing balance 17 841 129 17 189 095
Analysis of closing balance
Current year 2 393 469 3 372 232
Prior years 15 447 660 13 816 863
Total 17 841 129 17 189 095
2019 - 2020KZN TRANSPORT ANNUAL REPORT 241
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20
31,2Details of current and prior year irregular expenditure – added current year (under determination and investigation) R’000
IncidentDisciplinary steps taken/criminal proceedings
Irregularity identified in the prior year and expenditure incurred in the current year
Contract Management 32 759
SCM process not followed 24 240
Bids not adjudicated by BAC - Vukuzakhe 59 831
Competitive bidding process not followed 29 072
Plant Hire - application of PPPFA Regulations 10 391
Bus Subsidies 1 044 861
SCM evaluation process 573 726
Irregularity identified in the current year and expenditure incurred in the current year
Contract Management 123 165
SCM process not followed 19 398
Bids not adjudicated by BAC - Vukuzakhe 1 452
Competitive bidding process not followed 67 950
Bus Subsidies 291 565
SCM evaluation process 83 259
Transfer payments 1 513
SCM thresholds 24 370
Overtime greater than Public Service Regulation 5 917
Total 2 393 469
2019/20
31,3 Details of irregular expenditure condoned R’000
IncidentCondoned by (relevant authority)
PY - Bus subsidies ( Negoiated Contracts) 1 137 741
CY - Bus subsidies ( Negoiated Contracts) 603 694
Total 1 741 435
2019 - 2020 KZN TRANSPORT ANNUAL REPORT242
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20
31,4Details of irregular expenditure recoverable (not condoned) R’000
Incident
Total -
2019/20
31,5Details of irregular expenditure removed - (not condoned) R’000
IncidentNot condoned by (relevant authority)
Total -
2019/20
31,6Details of irregular expenditure written off (irrecoverable) R’000
Incident
Total -
2019/20
31,7Details of irregular expenditure under assessment (not included in the main note) R’000
Incident
Total -
31,8 Prior period error Note 2018/19
R’000
Nature of prior period error
Relating to 2017-18 - affecting the opening balance 3 112 593
Add:expenditure prior to 31-03-2017 for transactions reported in 2019-20 3 244 183
Less: not irregular expenditure -153 612
add:expenditure prior to 31-03-2017 for transactions identified as irregular in 2019-20 22 022
Relating to 2018/19 -31 483
Add: identified in current FY but payment made in PY 18 099
Less: not irregular expenditure -49 582
Total 3 081 110
2019 - 2020KZN TRANSPORT ANNUAL REPORT 243
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
32 Fruitless and wasteful expenditure R’000 R’000
32,1Reconciliation of fruitless and wasteful expenditure
Opening balance 919 19
Prior period error -
As restated 919 19
Fruitless and wasteful expenditure – relating to prior year 32,2
- -
Fruitless and wasteful expenditure – relating to current year 32,2
- 900
Less: Amounts recoverable 15,6 -310 -
Less: Amounts written off32,4
- -
Closing balance 609 919
32,2Details of current and prior year fruitless and wasteful expenditure – added current year (under determination and investigation) 2019/20
Incident Disciplinary steps taken/criminal
proceedings R’000
Total -
32,3 Details of fruitless and wasteful expenditure recoverable 2019/20
Incident R’000
Recoverable from RHDHV - P318 310
Total 310
32,4 Details of fruitless and wasteful expenditure written off 2019/20
Incident R’000
Total -
32,5 Prior period error Note 2018/19
R’000
Nature of prior period error
Relating to 20WW/XX (affecting the opening balance) -
Relating to 2018/19 -
Total -
2019 - 2020 KZN TRANSPORT ANNUAL REPORT244
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
32,6Details of fruitless and wasteful expenditure under investigation (not in the main note) 2019/20
Incident R’000
Total -
2019/20 2018/19
Note R’000 R’000
33 Related party transactions
Revenue received
Tax revenue - -
Sales of goods and services other than capital assets - -
Fines, penalties and forfeits - -
Interest, dividends and rent on land - -
Sales of capital assets - -
Transactions in financial assets and liabilities - -
Transfers received - -
Total - -
Payments made
Goods and services
- -
Interest and rent of land - -
Expenditure for capital assets - -
Payments for financial assets - -
Transfers and subsidies - -
Total - -
2019/20 2018/19
Note R’000 R’000
Year end balances arising from revenue/payments
Receivables from related parties - -
Payables to related parties - -
Total - -
2019/20 2018/19
Note R’000 R’000
Loans to/from related parties
Non-interest bearing loans to/(from) - -
Interest bearing loans to/(from) - -
Total - -
2019 - 2020KZN TRANSPORT ANNUAL REPORT 245
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
Other
Guarantees issued/received - -
List other contingent liabilities between department and related party
- -
- -
Total - -
2019/20 2018/19
Note R’000 R’000
In kind goods and services provided/received
List in kind goods and services between department and related party
- -
- -
Total - -
List related party relationships and the nature thereof
The department shares an MEC with the Department of Community Safety and Liaison. Transactions are on the same conditions as with other departments.
2019/20 2018/19
No. of R’000 R’000
34 Key management personnel Individuals
Political office bearers (provide detail below) 2 2 014 1 978
Officials: -
Level 15 to 16 5 8 927 8 458
Level 14 8 11 781 10 783
-
Family members of key management personnel 5 1 819 1 718
Total 24 541 22 937
2019 - 2020 KZN TRANSPORT ANNUAL REPORT246
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
No. of R’000 R’000
Individuals
Key management personnel (Parliament/Legislatures)
Speaker to Parliament/the Legislature - - -
Deputy Speaker to Parliament/the Legislature
-
- -
Secretary to Parliament/ the Legislature - - -
Deputy Secretary - - -
Chief Financial Officer - - -
Legal Advisor - - -
Other - - -
Total - -
Include discussion here where deemed relevant
35 Public Private Partnership
2019/20 2018/19
Note R’000 R’000
Concession fee received - -
Base fee received - -
Variable fee received - -
Other fees received… please specify - -
- -
Unitary fee paid - -
Fixed component - -
Indexed component - -
Analysis of indexed component - -
Compensation of employees - -
Goods and Services(excluding lease payments) - -
Operating leases - -
Interest - -
Capital/(Liabilities) - -
Tangible rights - -
Intangible rights - -
Property - -
Plant and equipment - -
Loans - -
Other - -
Prepayments and advances - -
Pre-production obligations - -
Other obligations - -
Any guarantees issued by the department are disclosed in Note 25.1
2019 - 2020KZN TRANSPORT ANNUAL REPORT 247
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019/20 2018/19
Note R’000 R’000
36Impairment (Other than receivables, accrued departmental revenue, loans and investments)
Please specify -
-
Total - -
2019/20 2018/19
Note R’000 R’000
37 Provisions
Claims against the state 40 -
Retensions on Infrastructure Projects 34 864 91 248
- -
- -
Total 34 904 91 248
Include discussion here where deemed relevant
37,1Reconciliation of movement in provisions - 2019/20
Provision 1 Provision 2 Provision 3 Provision 4 Total provisions
R’000 R’000 R’000 R’000 R’000
Opening balance - 91 248 - - 91 248
Increase in provision 40 34 864 - - 34 904
Settlement of provision - -91 248 - - -91 248
Unused amount reversed -
Reimbursement expected from third party -
Change in provision due to change in estimation of inputs -
Closing balance 40 34 864 - - 34 904
Reconciliation of movement in provisions - 2018/19
Provision 1 Provision 2 Provision 3 Provision 4 Total provisions
R’000 R’000 R’000 R’000 R’000
Opening balance 28 24 690 - - 24 718
Increase in provision - 91 248 - - 91 248
Settlement of provision -28 -24 690 - - -24 718
Unused amount reversed - - - - -
Reimbursement expected from third party - - - - -
Change in provision due to change in estimation of inputs - - - - -
Closing balance - 91 248 - - 91 248
2019 - 2020 KZN TRANSPORT ANNUAL REPORT248
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
38Non-adjusting events after reporting date 2019/20
Include an estimate of the financial effect of the subsequent non-adjusting events or a statement that such an estimate cannot be made. R’000
Total -
• For Note 26: Capital Commitments o The 2020/21 budget of the department was reduced by an amount of R2.071 billion as contribution toward the provincial Covid-19 response in the 2020/21 Special Adjustments Estimate. The funds were reprioritised from Compensation of employees (R106.570 million), Goods and services (R341.926 million), Buildings and other fixed structures (R1.481 billion) and Machinery and equipment (R141.506 million). This will result in a higher risk of the department not being able to meet their capital commitments, in this regard the department is undertaking a process to ensure that the existing Capital Commitments are prioritised in the operational plan for the 2020/21 financial year to ensure that all commitments are met when due. • For Note 41 Work in Progress o The 2020/21 budget of the department was reduced by an amount of R2.071 billion as contribution toward the provincial Covid-19 response in the 2020/21 Special Adjustments Estimate. The funds were reprioritised from Compensation of employees (R106.570 million), Goods and services (R341.926 million), Buildings and other fixed structures (R1.481 billion) and Machinery and equipment (R141.506 million). This will result in a higher risk of the department not being able to meet their capital commitments, in this regard the department is undertaking a process to ensure that the existing Capital Commitments are prioritised in the operational plan for the 2020/21 financial year to ensure that all commitments are met when due. In addition to this the economic downturn has place additional strain on the construction industry and has resulted in higher than normal number of contractors failing to implement projects that have been awarded to them, this results in an increased risk that the department will fail to achieve its stated outcomes and planed outputs might not be achieved on time.
39 Movable Tangible Capital Assets
MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020
Opening balance
Value ad-justments Additions Disposals Closing balance
R’000 R’000 R’000 R’000 R’000
HERITAGE ASSETS - - - - -
Heritage assets - - - - -
MACHINERY AND EQUIPMENT 1 533 907 - 286 053 -31 103 1 788 857
Transport assets 924 415 - 73 453 -10 548 987 320
Computer equipment 71 326 - 25 835 -321 96 840
Furniture and office equipment 68 170 - 2 028 - 70 198
Other machinery and equipment 469 996 - 184 737 -20 234 634 499
SPECIALISED MILITARY ASSETS - - - - -
Specialised military assets - - - - -
BIOLOGICAL ASSETS - - - - -
Biological assets - - - - -
TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 1 533 907 - 286 053 -31 103 1 788 857
2019 - 2020KZN TRANSPORT ANNUAL REPORT 249
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
Movable Tangible Capital Assets under investigation
Number Value
Included in the above total of the movable tangible capital assets per the asset register are assets that are under investigation: R’000
Heritage assets
Machinery and equipment
Specialised military assets
Biological assets
Additions
39,1 ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020
Cash Non-cash
(Capital work-in-progress
current costs and finance lease pay-
ments)
Received current, not paid (Paid
current year, received
prior year Total
R’000 R’000 R’000 R’000 R’000
HERITAGE ASSETS - - - - -
Heritage assets - - - - -
MACHINERY AND EQUIPMENT 286 053 - - - 286 053
Transport assets 73 453 - - - 73 453
Computer equipment 25 835 - - - 25 835
Furniture and office equipment 2 028 - - - 2 028
Other machinery and equipment 184 737 - - - 184 737
SPECIALISED MILITARY ASSETS - - - - -
Specialised military assets - - - - -
BIOLOGICAL ASSETS - - - - -
Biological assets - - - - -
TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS
286 053 - - - 286 053
Disposals
39,2 DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020
Sold for cash
Non-cash disposal
Total disposals
Cash received Actual
R’000 R’000 R’000 R’000
HERITAGE ASSETS - - - -
Heritage assets - - - -
MACHINERY AND EQUIPMENT
10 548 20 555 31 103 3 895
Transport assets 10 548 - 10 548 3 895
Computer equipment - 321 321 -
2019 - 2020 KZN TRANSPORT ANNUAL REPORT250
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
Furniture and office equipment
- - - -
Other machinery and equipment - 20 234 20 234 -
SPECIALISED MILITARY ASSETS - - - -
Specialised military assets - - -
BIOLOGICAL ASSETS - - - -
Biological assets - - -
TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS
10 548 20 555 31 103 3 895
39,3 Movement for 2018/19
MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019
Opening balance
Prior period error Additions Disposals Closing balance
R’000 R’000 R’000 R’000 R’000
HERITAGE ASSETS - - - - -
Heritage assets - - - - -
MACHINERY AND EQUIPMENT 1 361 119 - 185 150 -12 362 1 533 907
Transport assets 843 612 - 80 803 - 924 415
Computer equipment 69 928 - 8 603 -7 205 71 326
Furniture and office equipment
58 237 - 10 122 -189 68 170
Other machinery and equipment 389 342 - 85 622 -4 968 469 996
SPECIALISED MILITARY ASSETS - - - - -
Specialised military assets - - - - -
BIOLOGICAL ASSETS - - - - -
Biological assets - - - - -
TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 1 361 119 - 185 150 -12 362 1 533 907
39.3.1 Prior period error Note 2018/19
R’000
Nature of prior period error
Relating to 20WW/XX (affecting the opening balance) -
-
Relating to 2018/19 -
-
-
Total -
2019 - 2020KZN TRANSPORT ANNUAL REPORT 251
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
39,4 Minor assets
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020
Specialised military assets
Intangible assets
Heritage assets
Machinery and equip-
ment Biological
assets Total
R’000 R’000 R’000 R’000 R’000 R’000
Opening balance - - - 47 686 - 47 686
Value adjustments - - - - - -
Additions - - - 2 737 - 2 737
Disposals - - - 121 - 121
TOTAL MINOR ASSETS - - - 50 302 - 50 302
Specialised military assets
Intangible assets
Heritage assets
Machinery and equip-
ment
Biological assets
Total
Number of R1 minor assets -
Number of minor assets at cost -
TOTAL NUMBER OF MINOR ASSETS
-
-
-
-
- -
Minor Capital Assets under investigation
Number Value
Included in the above total of the minor capital assets per the asset register are assets that are under investigation: R’000
Specialised military assets
Intangible assets
Heritage assets
Machinery and equipment
Biological assets
Minor assets
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019
Specialised military assets
Intangible assets
Heritage assets
Machinery and equip-
ment Biological
assets Total
R’000 R’000 R’000 R’000 R’000 R’000
Opening balance - - - 46 448 - 46 448
Prior period error - - - - - -
Additions - - - 2 660 - 2 660
Disposals - - - 1 422 - 1 422
TOTAL MINOR ASSETS - - - 47 686 - 47 686
Specialised military assets
Intangible assets
Heritage assets
Machinery and equip-
ment Biological
assets Total
Number of R1 minor assets - - - - - -
Number of minor assets at cost - - - - - -
TOTAL NUMBER OF MINOR ASSETS - - - - - -
2019 - 2020 KZN TRANSPORT ANNUAL REPORT252
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
39.4.1 Prior period error Note 2018/19
R’000
Nature of prior period error
Relating to 20WW/XX (affecting the opening balance) -
Relating to 2018/19 -
Total -
39,5 Movable assets written off
MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2020
Specialised military assets
Intangible assets
Heritage assets
Machinery and equip-
ment Biological
assets Total
R’000 R’000 R’000 R’000 R’000 R’000
Assets written off - - - - - -
TOTAL MOVABLE ASSETS WRITTEN OFF
-
-
-
-
- -
MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2019
Specialis- ed
military assets
Intangible assets
Heritage assets
Machinery and equip-
ment
Biological assets
Total
R’000 R’000 R’000 R’000 R’000 R’000
Assets written off - - - 672 - 672
TOTAL MOVABLE ASSETS WRITTEN OFF
-
-
-
672
- 672
39,6 S42 Movable Capital Assets
MAJOR ASSETS TO BE TRANSFERRED IN TERMS OF S42 OF THE PFMA - 31 MARCH 2020
Specialised military assets
Intangible assets
Heritage assets
Machinery and equip-
ment Biological
assets Total
No of Assets -
Value of the asset (R’000) -
MINOR ASSETS TO BE TRANSFERRED IN TERMS OF S42 OF THE PFMA - 31 MARCH 2020
Specialised military assets
Intangible assets
Heritage assets
Machinery and equip-
ment Biological
assets Total
No of Assets -
Value of the asset (R’000) -
MAJOR ASSETS TO BE TRANSFERRED IN TERMS OF S42 OF THE PFMA - 31 MARCH 2019
Specialised military assets
Intangible assets
Heritage assets
Machinery and equip-
ment Biological
assets Total
No of Assets - - - - - -
Value of the asset (R’000) - - - - - -
2019 - 2020KZN TRANSPORT ANNUAL REPORT 253
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
MINOR ASSETS TO BE TRANSFERRED IN TERMS OF S42 OF THE PFMA - 31 MARCH 2019
Specialised military assets
Intangible assets
Heritage assets
Machinery and equip-
ment Biological
assets Total
No of Assets
-
-
-
-
- -
Value of the asset (R’000)
-
-
-
-
- -
40 Intangible Capital Assets
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020
Opening balance
Value ad-justments Additions Disposals Closing balance
R’000 R’000 R’000 R’000 R’000
SOFTWARE
-
-
- -
MASTHEADS AND PUBLISHING TITLES
-
-
- -
PATENTS, LICENCES, COPYRIGHT, BRAND NAMES, TRADEMARKS
-
-
- -
RECIPES, FORMULAE, PROTOTYPES, DESIGNS, MODELS
-
-
- -
SERVICES AND OPERATING RIGHTS 41 - - 41
TOTAL INTANGIBLE CAPITAL ASSETS 41 - - - 41
Intangible Capital Assets under investigation
Number Value
Included in the above total of the intangible capital assets per the asset register are assets that are under investigation: R’000
Software
Mastheads and publishing titles
Patents, licences, copyright, brand names, trademarks
Recipes, formulae, prototypes, designs, models
Services and operating rights
2019 - 2020 KZN TRANSPORT ANNUAL REPORT254
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
40,1 ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020
Cash Non-cash
(Develop-ment work-in-progress
current costs )
Received current, not paid (Paid
current year, received
prior year Total
R’000 R’000 R’000 R’000 R’000
SOFTWARE -
MASTHEADS AND PUBLISHING TITLES -
PATENTS, LICENCES, COPYRIGHT, BRAND NAMES, TRADEMARKS
- -
RECIPES, FORMULAE, PROTOTYPES, DESIGNS, MODELS -
SERVICES AND OPERATING RIGHTS -
TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS - - - - -
Disposals
40,2 DISPOSALS OF INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020
Sold for cash
Non-cash disposal
Total disposals
Cash received Actual
R’000 R’000 R’000 R’000
SOFTWARE - - - -
MASTHEADS AND PUBLISHING TITLES - -
- -
PATENTS, LICENCES, COPYRIGHT, BRAND NAMES, TRADEMARKS
-
-
- -
RECIPES, FORMULAE, PROTOTYPES, DESIGNS, MODELS
-
-
- -
SERVICES AND OPERATING RIGHTS - - - -
TOTAL DISPOSAL OF INTANGIBLE CAPITAL ASSETS
-
-
- -
2019 - 2020KZN TRANSPORT ANNUAL REPORT 255
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
Movement for 2018/19
40,3 MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019
Opening balance
Prior period error Additions Disposals Closing balance
R’000 R’000 R’000 R’000 R’000
SOFTWARE - - - - -
MASTHEADS AND PUBLISHING TITLES -
-
-
- -
PATENTS, LICENCES, COPYRIGHT, BRAND NAMES, TRADEMARKS
56 993 -56 993
-
- -
RECIPES, FORMULAE, PROTOTYPES, DESIGNS, MODELS
-
-
-
- -
SERVICES AND OPERATING RIGHTS 41 - - - 41
TOTAL INTANGIBLE CAPITAL ASSETS 57 034 -56 993 - - 41
40.3.1 Prior period error Note 2018/19
R’000
Nature of prior period error
Relating to 2017/18 -56 993
-56 993
Relating to 2018/19
-
-
Total -56 993
2019 - 2020 KZN TRANSPORT ANNUAL REPORT256
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
41 Immovable Tangible Capital Assets
MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020
Opening balance
Value adjustments Additions Disposals Closing balance
R’000 R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED STRUCTURES
139 325 -
115 - 139 440
Dwellings - - - -
Non-residential buildings 139 325 115 - 139 440
Other fixed structures - - - -
HERITAGE ASSETS - - - - -
Heritage assets - - - -
LAND AND SUBSOIL ASSETS 125 535 - 1 - 125 536
Land 125 535 1 - 125 536
Mineral and similar non-regenerative resources - - - -
TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS 264 860 - 116 - 264 976
The MCS on Accounting and Reporting for Immovable Assets currently provides for the phasing-in of roads for recording in the annual financial statements over a specified period of time, commencing in the 2021/2022 financial year. The department had over a number of years recorded roads on completion of construction in its annual financial statements, the cost records in this asset register were however found to be unreliable. The department after consultation with Office of the Accountant General, received a directive to remove all completed roads recorded in its notes to the annual financial statements, valued at R59,6 billion (2018/19: R57,6 billion), to align with the requirements of the MCS. The department has provided additional information in this regard in Annexure 9. In terms of the MCS the department will report on these assets in a phased manner commencing in the 2021/22 financial year.
Immovable Tangible Capital Assets under investigation
Number Value
Included in the above total of the immovable tangible capital assets per the asset register are assets that are under investigation: R’000
Buildings and other fixed structures
Heritage assets
Land and subsoil assets
2019 - 2020KZN TRANSPORT ANNUAL REPORT 257
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
Additions
41,1 ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020
Cash Non-cash
(Capital work-in-progress
current costs and
finance lease payments)
Received current, not paid (Paid
current year, received prior
year Total
R’000 R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED STRUCTURES
115 -
- - 115
Dwellings - - - - -
Non-residential buildings 115 - - - 115
Other fixed structures - - - - -
HERITAGE ASSETS - - - - -
Heritage assets - - - - -
LAND AND SUBSOIL ASSETS - 1 - - 1
Land - 1 - - 1
Mineral and similar non-regenerative resources - - - - -
TOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS 115 1 - - 116
Disposals
41,2 DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020
Sold for cashNon-cash disposal Total disposals
Cash received Actual
R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED STRUCTURES
- -
- -
Dwellings -
Non-residential buildings -
Other fixed structures -
HERITAGE ASSETS - - - -
Heritage assets -
LAND AND SUBSOIL ASSETS - - - -
Land -
Mineral and similar non-regenerative resources -
TOTAL DISPOSAL OF IMMOVABLE TANGIBLE CAPITAL ASSETS
- -
- -
Movement for 2018/19
2019 - 2020 KZN TRANSPORT ANNUAL REPORT258
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
41,3 MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019
Opening balance
Prior period error Additions Disposals Closing balance
R’000 R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED STRUCTURES
58 634 79 556 1 135 - 139 325
Dwellings - - - -
Non-residential buildings 58 634 79 556 1 135 - 139 325
Other fixed structures - - - - -
HERITAGE ASSETS - - - - -
Heritage assets - - - -
LAND AND SUBSOIL ASSETS - - 125 535 - 125 535
Land - 125 535 - 125 535
Mineral and similar non-regenerative resources - - - -
TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS
58 634 79 556 126 670 - 264 860
41.3.1Prior period error Note 2018/19
R’000
Nature of prior period error
79 556
Relating to 2018-19 - Incorrect classification to public transport facilities and admin buildings 79 556
Change in classification from Work-in-progress to complete. Duplication of transactions relating to prior year. -
Relating to 2018/19 -
Total 79 556
Capital Work-in-progress
41,4 CAPITAL WORK-IN-PROGRESS AS AT 31 MARCH 2020
Note
Opening Balance
1 April 2019 Current Year
WIP
Ready for use (Assets to the
AR) / Contracts terminated
Closing Balance 31 March 2020
Annexure 7 R’000 R’000 R’000 R’000
Heritage assets -
- - -
Buildings and other fixed structures 3 977 372 1 972 740 -2 014 976 3 935 135
Machinery and equipment - - - -
Intangible assets - - - -
TOTAL 3 977 372 1 972 740 -2 014 976 3 935 135
Include discussion here where deemed relevant
2019 - 2020KZN TRANSPORT ANNUAL REPORT 259
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
Age analysis on ongoing projects Number of projects 2019/20
Planned, construction not started
Planned, construction
started
Total R’000
0 to 1 year 116 55 717 758
1 to 3 year(s) 100 57 2 346 597
3 to 5 years 53 9 867 351
Longer than 5 years 8 - 7 429
Total 277 121 3 939 135
There are 8 projects that are older than 5 years. These projects have experienced a number of challenges namely:
• Termination of the appointed contractor
• Budget constraint, where feasibility studies could not be progressed to construction
• Delays due to project constraints i.e. terrain and weather
Two of the 8 projects will be completed in the 2020/2021 financial year.
2019/20 2018/19
Payables not recognised relating to Capital WIP R’000 R’000
- -
- -
Total - -
CAPITAL WORK-IN-PROGRESS AS AT 31 MARCH 2019
Note Opening Balance
Prior period error
Current Year WIP
Ready for use (Assets to the
AR) / Contracts terminated
Closing Balance 31 March 2019
Annexure 7 R’000 R’000 R’000 R’000 R’000
Heritage assets - - - - -
Buildings and other fixed structures 6 615 382 -1 924 900 2 950 872 -3 663 982 3 977 371
Machinery and equipment - - - - -
Intangible assets - - - - -
TOTAL 6 615 382 -1 924 900 2 950 872 -3 663 982 3 977 371
Include discussion here where deemed relevant
Age analysis on ongoing projects Number of projects 2018/19
Planned, construction not started
Planned, construction
started
Total R’000
0 to 1 year 81 59 720 075
1 to 3 year(s) 111 75 3 195 426
3 to 5 years 24 7 61 871
Longer than 5 years - - -
Total 216 141 3 977 372
2019 - 2020 KZN TRANSPORT ANNUAL REPORT260
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
Immovable assets written off
41,5 IMMOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2020
Buildings and other
fixed structures Heritage assets
Land and subsoil assets Total
R’000 R’000 R’000 R’000
Immovable assets written off -
TOTAL IMMOVABLE ASSETS WRITTEN OFF
- -
- -
IMMOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2019
Buildings and other
fixed structures Heritage assets
Land and subsoil assets Total
R’000 R’000 R’000 R’000
Immovable assets written off
- -
- -
TOTAL IMMOVABLE ASSETS WRITTEN OFF - - - -
Include discussion here where deemed relevant
S42 Immovable assets
41,6Assets to be transferred in terms of S42 of the PFMA - 2019/20 No of Assets Value of Assets
R’000
BUILDINGS AND OTHER FIXED STRUCTURES - -
Dwellings - -
Non-residential buildings - -
Other fixed structures - -
HERITAGE ASSETS - -
Heritage assets - -
LAND AND SUBSOIL ASSETS - -
Land - -
Mineral and similar non-regenerative resources - -
TOTAL - -
Assets transferred in terms of S42 of the PFMA - 18/19
Assets to be transferred in terms of S42 of the PFMA - 2018/19 No of Assets Value of Assets
R’000
BUILDINGS AND OTHER FIXED STRUCTURES - -
Dwellings - -
Non-residential buildings - -
2019 - 2020KZN TRANSPORT ANNUAL REPORT 261
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
Other fixed structures - -
HERITAGE ASSETS - -
Heritage assets - -
LAND AND SUBSOIL ASSETS - -
Land - -
Mineral and similar non-regenerative resources - -
TOTAL - -
Include discussion here where deemed relevant
2019/20 2018/19
41,7Immovable assets additional information Note
a Unsurveyed land Estimated completion date Annexure 8 Area Area
-
b Properties deemed vested Annexure 8 Number Number
Land parcels -
Facilities
Schools -
Clinics -
Hospitals -
Office buildings -
Dwellings -
Storage facilities -
Other -
c Facilities on unsurveyed land Duration of use Annexure 8 Number Number
Schools -
Clinics -
Hospitals -
Office buildings -
Dwellings -
Storage facilities -
Other -
d Facilities on right to use land Duration of use Annexure 8 Number Number
Schools -
Clinics -
Hospitals -
Office buildings -
Dwellings -
Storage facilities -
Other -
2019 - 2020 KZN TRANSPORT ANNUAL REPORT262
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
e Agreement of custodianship Annexure 8 Number Number
Land parcels -
Facilities -
Schools -
Clinics -
Hospitals -
Office buildings -
Dwellings -
Storage facilities -
Other -
Include discussion here where deemed relevant
42 Principal-agent arrangements
2019/20 2018/19
42,1Department acting as the principal
R’000 R’000
-
Total - -
Agents are appointed to perform motor vehicle registration and licensing functions and as per agreements entered into, are entitled to 8.55% as an Agency Fee. Clause 7.10.1 reads as follows, “The Agent shall be entitled to a fee equal to the collection fee of 8.55% (eight point fifty five percent), including VAT for all fees collected in terms of clause 7.2 for motor vehicle registration and licensing fees, as specified in the relevant schedules contained in applicable national and provincial road traffic legislation This arrangement enhances service delivery throughout the Province in urban or rural areas and enhances job creation at these Municipalities and Post Offices. The risks related to revenue due to the Department are minimized due to the fact that agreements require the daily banking/ pay-over of revenue to facilitate reconciliations
42,2Department acting as the agent
42.2.1Revenue received for agency activities 2019/20 2018/19
R’000 R’000
-
-
-
Total - -
The department collects a levy for motor vehicle licensing transactions preformed on behalf of the Road Traffic Management Corporation (RTMC), this levy is determined by the National Minister and is paid across in full to the RTMC on a monthly basis in arrears. This levy is determined in terms of the Road Traffic Management Corporation Act, 1999 (Act no.20 of 1999) This levy is automatically added to each relevant transaction when processed by the NaTIS System. The Department collects a levy on behalf of the Driving License Card Account a Trading Entity reporting to the Department of Transport. This levy is collected for each driving licence card transaction performed, the levy is determined by the National Minister and automatically added to each relevant transaction when processed through the NaTIS System and in full paid across the DLCA. This levy is determined in terms of Regulations 108(1A) and 119(1A) of the National Road Traffic Regulations, 2000 under the National Road Traffic Act, 1996 (Act 93 of 1996)
2019 - 2020KZN TRANSPORT ANNUAL REPORT 263
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
42.2.2Reconciliation of funds and disbursements - 2019/20
Category of revenue/expenditure per arrangement
Total funds received
Expenditure incurred
against funds
R’000 R’000
Road Traffic Management Corporation 122 568
Driver License Account 14 546
Total 137 114 -
Reconciliation of funds and disbursements - 2018/19
Category of revenue/expenditure per arrangement
Total funds received
Expenditure incurred
against funds
R’000 R’000
Road Traffic Management Corporation 122 086 -
Driver License Account 13 844 -
Total 135 930 -
42.2.3Reconciliation of carrying amount of receivables and payables - 2019/20
Receivables
Opening balance
Revenue principal is entitled to
Less: Write-offs/
settlements/waivers
Cash received on behalf of
principal Closing balance
R’000 R’000 R’000 R’000 R’000
Name of entity
-
-
TOTAL - - - - -
Payables
Opening balance
Expenses incurred on
behalf of principal
Cash paid on behalf of
principal Closing balance
R’000 R’000 R’000 R’000
Name of entity
RTMC - 14 545 859 -14 545 859 -
DLCA 9 875 772 122 567 946 -123 977 886 8 465 832
-
TOTAL 9 875 772 137 113 805 -138 523 745 8 465 832
Reconciliation of carrying amount of receivables and payables - 2018/19
Receivables
2019 - 2020 KZN TRANSPORT ANNUAL REPORT264
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
Opening balance
Revenue principal is entitled to
Less: Write-offs/
settlements/waivers
Cash received on behalf of
principal Closing balance
R’000 R’000 R’000 R’000 R’000
Name of entity
-
-
TOTAL - - - - -
Payables
Opening balance
Expenses incurred on
behalf of principal
Cash paid on behalf of
principal Closing balance
R’000 R’000 R’000 R’000
Name of entity
RTMC - 13 844 224 13 844 224 -
DLCA 9 338 808 122 085 804 121 548 840 9 875 772
-
-
-
TOTAL 9 338 808 135 930 028 135 393 064 9 875 772
2019 - 2020KZN TRANSPORT ANNUAL REPORT 265
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
43 Change in accounting estimate
During the year the following changes were made to the estimations employed in the accounting for transactions, assets, liabilities, events and circumstances
Value derived using the original
estimate
Value derived using the amended estimate
R-value impact of change in
estimate
Accounting estimate change 1: Provide a description of the change in estmate
Line item 1 affected by the change
Line item 2 affected by the change
Line item 3 affected by the change
Line item 4 affected by the change
Line item 5 affected by the change
Value derived using the original
estimate
Value derived using the amended estimate
R-value impact of change in
estimate
Accounting estimate change 2: Provide a description of the change in estmate
Line item 1 affected by the change
Line item 2 affected by the change
Line item 3 affected by the change
Line item 4 affected by the change
Line item 5 affected by the change
Value derived using the original
estimate
Value derived using the amended estimate
R-value impact of change in estimate
Accounting estimate change 3: Provide a description of the change in estmate
Line item 1 affected by the change
Line item 2 affected by the change
Line item 3 affected by the change
Line item 4 affected by the change
Line item 5 affected by the change
2019 - 2020 KZN TRANSPORT ANNUAL REPORT266
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
44 Prior period errors
2018/19
Note Amount bef error correction
Prior period error Restated amount
44,1 Correction of prior period errors
R’000 R’000 R’000
Revenue: (e.g. Annual appropriation, Departmental revenue, Aid assistance, etc.)
-
-
Net effect -
- -
Expenditure: (e.g. Compensation of employees, Goods and services, Tangible capital assets, etc.)
-
-
Net effect -
- -
Assets: (e.g. Receivables, Investments, Accrued departmental revenue, Movable tangible capital assets, etc.)
Immovable tangible capital assets 41.3.1 54 037 055 1 978 878 56 015 933
Capital work-in-progress 41 6 615 382 1 924 900 8 540 282
-
Net effect 60 652 437 3 903 778 64 556 215
Liabilities: (e.g. Payables current, Voted funds to be surrendered, Commitments, Provisions, etc.)
-
Net effect -
- -
Other: (e.g. Irregular expenditure, fruitless and wasteful expenditure, etc.)
Irregular Expenditure -Opening balance 1 April 2018
31 10 704 268 3 112 593 13 816 861
Irregular Expenditure - Additions relating to 2018-19
31 3 403 715 -31 483 3 372 232
-
Net effect 14 107 983 3 081 110 17 189 093
2019 - 2020KZN TRANSPORT ANNUAL REPORT 267
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
45 INVENTORIES (Effective from date determined in a Treasury instruction)
45,1 Inventories for the year ended 31 March 2020
Insert major
category
Insert major category
Insert major category
Insert major category
Total
Note R’000 R’000 R’000 R’000 R’000
Annex-ure 6
Opening balance
32 125
- -
- 32 125
Add/(Less): Adjustments to prior year balances
-
- -
- -
Add: Additions/Purchases - Cash
78 165
- -
- 78 165
Add: Additions - Non-cash - - - - -
(Less): Disposals - - - - -
(Less): Issues -73 836 - - - -73 836
Add/(Less): Received current, not paid (Paid current year, received prior year)
-
- -
- -
Add/(Less): Adjustments
-
- -
- -
Closing balance 36 454 - - - 36 454
Inventories for the year ended 31 March 2019
Insert major
category
Insert major category
Insert major category
Insert major category
Total
Note R’000 R’000 R’000 R’000 R’000
Annexure 6
Opening balance
29 451
- - - 29 451
Add/(Less): Adjustments to prior year balances
- - - - -
Add: Additions/Purchases - Cash
57 914 - - - 57 914
Add: Additions - Non-cash
- - - - -
(Less): Disposals
- - - - -
(Less): Issues
-56 361
- - - -56 361
Add/(Less): Received current, not paid (Paid current year, received prior year)
- - - - -
Add/(Less): Adjustments
- - - - -
Closing balance 31 004 - - - 31 004
2019 - 2020 KZN TRANSPORT ANNUAL REPORT268
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
45,2 Land parcels held for Human Settlement
2019/20 2018/19
Note R’000 R’000
Annexure 6
Opening balance -
Add/(Less): Adjustments to prior year balances
-
Add: Additions/Purchases - Cash -
Add: Additions - Non-cash -
(Less): Disposals -
(Less): Issues -
Add/(Less): Received current, not paid (Paid current year, received prior year)
-
Add/(Less): Adjustments -
Closing balance - -
45,3 Work in progress for the year ended 31 March 2020
Opening balance
Additions during year
(Ready for use / Suspended)
Closing balance
Note R’000 R’000 R’000 R’000
Annexure 6
Clearing -
Infrastructure -
Structure of houses -
Adjustments -
Total - - - -
Work in progress for the year ended 31 March 2019
Opening balance
Additions during year
(Ready for use / Suspended)
Closing balance
Note R’000 R’000 R’000 R’000
Annexure 6
Clearing - - - -
Infrastructure - - - -
Structure of houses
- - - -
Adjustments - - - -
Total - - - -
45,4 Houses ready for use
Quantity 2019/20 Quantity 2018/19
Note R’000 R’000 R’000 R’000
Annexure 6
Opening balance -
Add/(Less): Adjustments to prior year balances
-
Add: Ready for use in current year -
Less: Issued to beneficiaries -
Add/(Less): Adjustments -
Closing balance - - - -
2019 - 2020KZN TRANSPORT ANNUAL REPORT 269
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
46 TRANSFER OF FUNCTIONS AND MERGERS
46,1 Transfer of functions
Provide a brief description of the functions transferred or acquired and the reason for undertaking the transaction or event.
46.1.1 State-ment of Financial Position
Note Balance before
transfer date
Functions (transferred) /
received Dept name
(Specify)
Functions (transferred) /
received Dept name
(Specify)
Functions (transferred)
/ received Dept name
(Specify)
Balance after transfer
date
R’000 R’000 R’000 R’000 R’000
ASSETS
Current Assets - - - -
-
Unauthorised expenditure -
Fruitless and wasteful ex-penditure
-
Cash and cash equivalents -
Other financial assets -
Prepayments and advances -
Receivables -
Loans -
Aid assistance receivable -
Non-Current Assets
Investments
- - - - -
-
Receivables -
Loans
Other financial assets
-
-
TOTAL ASSETS - - - - -
LIABILITIES
Current Liabilities - - - -
-
Voted funds to be surrendered to the Revenue Fund
-
Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund
-
Bank overdraft -
2019 - 2020 KZN TRANSPORT ANNUAL REPORT270
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
Payables -
Aid assistance repayable
-
Aid assistance unutilised -
Non-Current Liabilities
- - - -
-
Payables -
TOTAL LIABILITIES
- - - -
-
NET ASSETS - - - -
-
46.1.2 Notes Balance before
transfer date
Functions (transferred) /
received Dept name
(Specify)
Functions (transferred) /
received Dept name
(Specify)
Functions (transferred)
/ received Dept name
(Specify)
Balance after transfer
date
R’000 R’000 R’000 R’000 R’000
Contingent liabilities -
Contingent assets -
Capital commitments -
Accruals -
Payables not recognised
Employee benefits -
Lease commitments - operating lease
-
Lease commitments - finance lease
-
Lease commitments - operating lease revenue
-
Accrued departmental revenue
-
Irregular expenditure -
Fruitless and wasteful expenditure
-
Impairment -
Provisions
Movable tangible capital assets
-
Immovable tangible capital assets
-
Intangible capital assets -
Provide a reference to the proclamation or declaration giving effect to the transfer or receipt of functions
Indicate whether there was an agreement drawn up, and provide a description of the roles, responsibilities and accountability arrangements
Disclose the revenue and expenditure attributable to the transfer of functions subsequent to the transfer.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 271
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
46,2 Mergers
Provide a brief description of the merger and the reason for undertaking the transaction or event.
46.1.1 State-ment of Financial Position
Note Balance bef merger date
Combining Dept (Specify)
Balance bef merger date
Combining Dept (Specify)
Balance bef merger date Combining
Dept (Specify)
Balance after merger date
Combined Dept (Specify)
R’000 R’000 R’000 R’000
ASSETS
Current Assets - - -
-
Unauthorised expenditure -
Fruitless and wasteful expenditure
-
Cash and cash equivalents -
Other financial assets -
Prepayments and advances -
Receivables -
Loans -
Aid assistance receivable -
Non-Current Assets
- - -
-
Investments -
Receivables -
Loans -
Other financial assets
-
TOTAL ASSETS - - - -
LIABILITIES
Current Liabilities
- - -
-
Voted funds to be surrendered to the Revenue Fund
-
Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund
-
Bank overdraft -
Payables -
Aid assistance repayable -
Aid assistance unutilised -
Non-Current Liabilities - - - -
2019 - 2020 KZN TRANSPORT ANNUAL REPORT272
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
Payables -
TOTAL LIABILITIES - - - -
NET ASSETS - - - -
46.1.2 Notes Balance bef merger date
Combining Dept (Specify)
Balance bef merger date
Combining Dept (Specify)
Balance bef merger date Combining
Dept (Specify)
Balance after merger date
Combined Dept (Specify)
R’000 R’000 R’000 R’000
Contingent liabilities -
Contingent assets -
Capital commitments -
Accruals -
Payables not recognised
Employee benefits -
Lease commitments - operating lease
-
Lease commitments - finance lease
-
Lease commitments - operating lease revenue
-
Accrued departmental revenue
-
Irregular expenditure -
Fruitless and wasteful expenditure
-
Impairment -
Provisions
Movable tangible capital assets
-
Immovable tangible capital assets
-
Intangible capital assets -
Provide a reference to the proclamation or declaration giving effect to the merger along with the merger date.
Indicate whether there was an agreement drawn up, and provide a description of the roles, responsibilities and accountability arrangements
Combining departments: For each asset transferred and liability derecognised/removed, the carrying amount of the assets transferred and the liabilities derecognised/removed.
2019 - 2020KZN TRANSPORT ANNUAL REPORT 273
47 S
TATE
MEN
T O
F CO
NDI
TIO
NAL
GRA
NTS
REC
EIVE
D
G
RAN
T AL
LOCA
TIO
NSP
ENT
2018
/19
NAM
E O
F G
RAN
T
Divi
sion
of
Reve
nue
Act/
Prov
inci
al G
rant
s
Roll
Ove
rsDO
RA A
d-ju
stm
ents
Oth
er A
d-ju
stm
ents
Tota
l Av
aila
ble
Amou
nt
rece
ived
by
depa
rtm
ent
Amou
nt sp
ent
by d
epar
tmen
tU
nder
/
(ove
rspe
nd-
ing)
% o
f ava
ilabl
e
fund
s spe
nt b
y de
pt
Divi
sion
of
Reve
nue
Act
Amou
nt sp
ent
by d
epar
tmen
t
R
’000
R
’000
R
’000
R
’000
R
’000
R
’000
R
’000
R
’000
%
R
’000
R
’000
Pro
vinc
ial R
oads
M
aint
enan
ce
Gran
t 1
882
781
-
-
-
1 8
82 7
81
1 88
2 78
1 1
882
781
-
100%
1 8
26 7
45
1 8
26 7
45
Pub
lic T
rans
port
O
pera
tions
Gra
nt
1 1
68 0
99
-
-
- 1
168
099
1
168
099
1 16
8 09
9
- 10
0% 1
106
154
1
106
154
EPW
P In
centi
ve
Gran
t 7
1 67
7
2 46
9
-
-
71 6
77
71
677
71
677
- 10
0%76
562
7
6 56
2
3 12
2 55
7
2 46
9
-
- 3
122
557
3 1
22 5
57
3 1
22 5
57
-
3 00
9 46
1 3
009
461
Depa
rtm
ents
are
rem
inde
d of
the
DORA
requ
irem
ent t
o ce
rtify
that
all
tran
sfer
s in
term
s of t
his A
ct w
ere
depo
sited
into
the
prim
ary
bank
acc
ount
of t
he p
rovi
nce
or, w
here
app
ropr
iate
, int
o th
e CP
D ac
coun
t of a
pro
vinc
e.
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
2019 - 2020 KZN TRANSPORT ANNUAL REPORT274
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
ANN
EXU
RE 1
AST
ATEM
ENT
OF
TRAN
SFER
S TO
DEP
ARTM
ENTA
L AG
ENCI
ES A
ND
ACCO
UN
TS
TRAN
SFER
ALL
OCA
TIO
NTR
ANSF
ER20
18/1
9
DEPA
RTM
ENT/
AGEN
CY/A
CCO
UN
T
Adju
sted
ap
prop
riatio
nRo
ll O
vers
Adju
stm
ents
Tota
l Ava
ilabl
eAc
tual
Tra
nsfe
r%
of A
vaila
ble
fund
s tr
ansf
erre
d
Fina
l Ap
prop
riatio
n
R
’000
R
’000
R
’000
R
’000
R
’000
%
R’0
00
Con
stru
ction
CET
A
5 2
51
-
-
5
251
5
251
100%
4
478
Saf
ety
and
Secu
rity
CETA
-
-
-
-
Tot
al
5
251
-
-
5 2
51
5 25
1
4 4
78
2019 - 2020KZN TRANSPORT ANNUAL REPORT 275
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
ANN
EXU
RE 1
BST
ATEM
ENT
OF
TRAN
SFER
S/SU
BSID
IES
TO P
UBL
IC C
ORP
ORA
TIO
NS
AND
PRIV
ATE
ENTE
RPRI
SES
TR
ANSF
ER A
LLO
CATI
ON
EXPE
NDI
TURE
2018
/19
NAM
E O
F PU
BLIC
CO
RPO
RATI
ON
/PRI
VATE
EN
TERP
RISE
Adju
sted
ap
prop
riatio
n Ac
t
Roll
Ove
rsAd
just
men
tsTo
tal A
vaila
ble
Actu
al T
rans
fer
% o
f Ava
ilabl
e fu
nds t
rans
ferr
edCa
pita
lCu
rren
tFi
nal
Appr
opria
tion
R
’000
R
’000
R
’000
R
’000
R
’000
%
R’0
00
R’0
00
R’0
00
Publ
ic c
orpo
ratio
ns
Tra
nsfe
rs
1 16
8 09
9
-
- 1
168
099
1
382
096
11
8,3%
-
1 3
82 0
96
1 10
5 15
4
Pub
lic T
rans
port
Ope
ratio
ns
Gran
t
1
168
099
-
-
1 1
68 0
99
1 3
82 0
96
118,
3%
1 38
2 09
6
1
105
154
Sub
tota
l: Pu
blic
cor
pora
tions
1
168
099
-
-
1 1
68 0
99
1 3
82 0
96
118,
3%
- 1
382
096
1
105
154
TO
TAL
1 16
8 09
9
-
- 1
168
099
1
382
096
118,
3%
- 1
382
096
1 10
5 15
4
2019 - 2020 KZN TRANSPORT ANNUAL REPORT276
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
ANN
EXU
RE 1
CST
ATEM
ENT
OF
TRAN
SFER
S TO
NO
N-P
ROFI
T IN
STIT
UTI
ON
S
TRAN
SFER
ALL
OCA
TIO
NEX
PEN
DITU
RE20
18/1
9
NO
N-P
ROFI
T IN
STIT
UTI
ON
S
Adju
sted
ap
prop
riatio
n Ac
tRo
ll O
vers
Adju
stm
ents
Tota
l Ava
ilabl
eAc
tual
Tra
nsfe
r%
of A
vaila
ble
fund
s tra
nsfe
rred
Fina
l Ap
prop
riatio
n
R
’000
R
’000
R
’000
R
’000
R
’000
%
R’0
00
Tra
nsfe
rs
SA
Nati
onal
Tax
i Cou
ncil
3
011
-
-
3 0
06
2 2
13
Tota
l
3 0
11
-
-
-
3
006
2 2
13
2019 - 2020KZN TRANSPORT ANNUAL REPORT 277
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
ANN
EXU
RE 1
DST
ATEM
ENT
OF
AID
ASS
ISTA
NC
E R
ECEI
VED
NAM
E O
F DO
NO
RPU
RPO
SEO
PEN
ING
BA
LAN
CERE
VEN
UE
EXPE
NDI
-TU
REPA
ID B
ACK
ON
/BY
31 M
ARCL
OSI
NG
BAL
ANCE
R’0
00
R’0
00
R’0
00
R’0
00
R’0
00
Rece
ived
in c
ash
Ethe
kwin
i Mun
icip
ality
Prov
inci
al P
ublic
Tra
nspo
rt In
fras
truc
ture
241
-
-
-
241
RTM
CRo
ad S
afet
y Im
prov
emen
t Pro
gram
me
12 3
23
- 6
633
-
5 69
0
Subt
otal
12 5
64
- 6
633
-
5 93
1
TOTA
L12
564
-
6 63
3
- 5
931
2019 - 2020 KZN TRANSPORT ANNUAL REPORT278
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
ANN
EXU
RE 2
AST
ATEM
ENT
OF
FIN
ANCI
AL G
UARA
NTE
ES IS
SUED
AS
AT 3
1 M
ARCH
202
0 - L
OCA
L
GUA
RAN
TOR
INST
ITU
TIO
NG
uara
ntee
in
resp
ect o
fO
rigin
al
guar
ante
ed
capi
tal a
mou
nt
Ope
ning
ba
lanc
e 1
April
201
9
Gua
rant
ees d
raw
do
wns
dur
ing
the
year
Gua
rant
eed
repa
ymen
ts/
canc
elle
d/
redu
ced
durin
g th
e ye
ar
Reva
luati
on d
ue to
fo
reig
n cu
rren
cy
mov
emen
ts
Clos
ing
bala
nce
31 M
arch
202
0Re
valu
ation
s du
e to
infla
tion
rate
mov
emen
ts
Accr
ued
guar
ante
ed
inte
rest
for y
ear
ende
d 31
Mar
ch
2020
R’0
00
R’0
00
R’0
00
R’0
00
R’0
00
R’0
00
R’0
00
R’0
00
Hous
ing
Old
Mut
ual
(Ned
bank
/ Pe
rman
ent B
ank
Hous
ing
-
24
-
21
-
3
Subt
otal
-
24
-
21
-
3
-
-
Tota
l
-
-
-
-
-
-
-
-
2019 - 2020KZN TRANSPORT ANNUAL REPORT 279
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
ANN
EXU
RE 2
BST
ATEM
ENT
OF
CON
TIN
GEN
T LI
ABIL
ITIE
S AS
AT
31 M
ARCH
202
0
NAT
UR
E O
F LI
AB
ILIT
YO
peni
ng
bala
nce
1 A
pril
2019
Liab
ilitie
s in
curr
ed d
urin
g th
e ye
ar
Liab
ilitie
s pa
id/
canc
elle
d/
redu
ced
durin
g th
e ye
ar
Liab
ilite
s re
cove
rabl
e (P
rovi
de d
etai
ls
here
unde
r)
Clo
sing
ba
lanc
e
31 M
arch
202
0
R
’000
R
’000
R
’000
R
’000
R
’000
C
laim
s ag
ains
t the
dep
artm
ent
Poth
oles
30 8
53
5 21
9 (2
6 05
0)3
260
58 8
62
Acc
iden
ts8
203
932
(27
116)
636
35 6
15
Civ
il19
6 36
0 10
216
(3
8 43
4)
50
408
194
602
Subt
otal
235
416
16 3
67
(91
600)
54
30
4 28
9 07
9 TO
TAL
235
416
16 3
67
(91
600)
54 3
04
289
079
2019 - 2020 KZN TRANSPORT ANNUAL REPORT280
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
ANN
EXU
RE 3
CLAI
MS
RECO
VERA
BLE
C
onfir
med
bal
ance
out
stan
ding
U
ncon
firm
ed b
alan
ce o
utst
andi
ng
Tot
al
Cas
h in
tran
sit a
t yea
r end
201
9/20
*
GO
VERN
MEN
T EN
TITY
3
1/03
/202
0 3
1/03
/201
9 3
1/03
/202
0 3
1/03
/201
9 3
1/03
/202
0 3
1/03
/201
9
Rec
eipt
dat
e up
to
six
(6) w
orki
ng
days
afte
r yea
r end
A
mou
nt
R
’000
R
’000
R
’000
R
’000
R
’000
R
’000
R’00
0
DEPA
RTM
ENTS
Nati
onal
Dep
artm
ents
-
-
Corr
ectio
nal S
ervi
ces
-
-
-
55
7
-
55
7
Justi
ce
-
-
- 11
402
-
11 4
02
Nati
onal
Tra
nspo
rt
-
-
-
-
-
-
Oth
er
-
-
-
115
-
115
Una
lloca
ted
Cred
its
-
-
-
(3
29)
-
(3
29)
-
-
KZN
Pro
vinc
ial D
epar
tmen
ts
-
-
Agric
ultu
re
-
-
1 14
3 2
890
1 14
3 2
890
Econ
omic
Dev
elop
men
t
-
-
2 1
40
87
6 2
140
87
6
Educ
ation
-
- 2
1 02
2 18
278
21
022
1
8 27
8
Heal
th
-
-
23
415
15 4
90
23 4
15
15 4
90
Hum
an S
ettle
men
t
-
-
4
98
9
4
989
Prov
inci
al L
egisl
atur
e
-
-
18
4
194
18
4
194
Offi
ce o
f the
Pre
mie
r
-
-
28
15
2
28
152
2019 - 2020KZN TRANSPORT ANNUAL REPORT 281
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
Prov
inci
al T
reas
ury
-
-
-
4
-
4
Roya
l Hou
seho
ld
-
-
1 67
9 1
700
1 67
9 1
700
Co-O
pera
tive
Gov
&Tr
aditi
onal
Affa
irs
-
-
3 0
48
3 31
4 3
048
3 3
14
Soci
al W
elfa
re
-
-
1 4
16
3 7
13
1 41
6 3
713
Spor
t
-
-
21
33
21
33
Art &
Cul
ture
-
-
678
1 9
70
67
8 1
970
Com
mun
ity S
afet
y an
d Li
aiso
n
-
-
66
0 1
020
660
1 02
0
Wor
ks
-
-
(3
0)
290
(3
0)
290
SASS
A
-
-
11
4
294
11
4
294
Una
lloca
ted
Cred
its
-
-
(1
00)
-
(1
00)
Oth
er
-
-
(420
)
450
(420
)
450
-
-
Priv
ate
Entit
y
-
-
RBM
-
-
-
6 2
88
- 6
288
-
-
-
Publ
ic E
ntitie
s
-
-
Nati
onal
Pub
lic E
ntitie
s
-
-
5 84
7 11
305
5
847
11 3
05
-
-
Tota
l
-
-
60
949
80
895
60 9
49
80 8
95
2019 - 2020 KZN TRANSPORT ANNUAL REPORT282
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
ANN
EXU
RE 4
INTE
R-G
OVE
RNM
ENT
PAYA
BLES
Con
firm
ed b
alan
ce o
utst
andi
ng
Unc
onfir
med
bal
ance
ou
tsta
ndin
g T
otal
C
ash
in tr
ansi
t at y
ear e
nd 2
019/
20*
GO
VERN
MEN
T EN
TITY
3
1/03
/202
0 3
1/03
/201
9 3
1/03
/202
0 3
1/03
/201
9 3
1/03
/202
0 3
1/03
/201
9
Pay
men
t dat
e up
to
six
(6) w
orki
ng d
ays
befo
re y
ear e
nd
Am
ount
R
’000
R
’000
R
’000
R
’000
R
’000
R
’000
R’0
00
DEPA
RTM
ENTS
Curr
ent
KZN
Pub
lic W
orks
-
-
7 01
9
-
7 01
9
-
-
Prov
inci
al L
egisl
atur
e
-
-
36
-
36
-
-
-
-
Subt
otal
-
-
7 05
5
-
7 05
5
-
-
Tota
l Dep
artm
ents
-
-
7 05
5
-
7 05
5
-
-
TOTA
L IN
TERG
OVE
RNM
ENTA
L PA
YABL
ES
-
- 7
055
- 7
055
-
2019 - 2020KZN TRANSPORT ANNUAL REPORT 283
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
ANN
EXU
RE 5
INVE
NTO
RIES
INVE
NTO
RIES
FO
R TH
E YE
AR E
NDE
D 31
MAR
CH 2
020
Not
e
Inse
rt m
ajor
ca
tego
ry o
f in
vent
ory
Inse
rt m
ajor
ca
tego
ry o
f in
vent
ory
Inse
rt m
ajor
ca
tego
ry o
f in
vent
ory
Inse
rt m
ajor
ca
tego
ry o
f in
vent
ory
TOTA
L
R’0
00
R’0
00
R’0
00
R’0
00
R’0
00
Ope
ning
bal
ance
31 1
25
-
-
-
31 1
25
Add/
(Les
s):
Adju
stm
ents
to p
rior y
ear b
alan
ces
-
-
-
-
-
Add:
Add
ition
s/Pu
rcha
ses -
Cas
h78
165
-
-
- 78
165
Add:
Add
ition
s - N
on-c
ash
-
-
-
-
-
(Les
s): D
ispos
als
-
-
-
-
-
(Les
s): I
ssue
s
(73
836)
-
-
-
(73
836)
Add/
(Les
s): R
ecei
ved
curr
ent,
not p
aid
(Pai
d cu
rren
t yea
r, re
ceiv
ed p
rior y
ear)
-
-
-
-
-
Add/
(Les
s): A
djus
tmen
ts
-
-
-
-
-
Clos
ing
bala
nce
35 4
54
-
-
- 35
454
INVE
NTO
RIES
FO
R TH
E YE
AR E
NDE
D 31
MAR
CH 2
019
Not
e
Inse
rt m
ajor
ca
tego
ry o
f in
vent
ory
Inse
rt m
ajor
ca
tego
ry o
f in
vent
ory
Inse
rt m
ajor
ca
tego
ry o
f in
vent
ory
Inse
rt m
ajor
ca
tego
ry o
f in
vent
ory
TOTA
L
R’0
00
R’0
00
R’0
00
R’0
00
R’0
00
Ope
ning
bal
ance
31 0
04
-
-
-
31 0
04
Add/
(Les
s):
Adju
stm
ents
to p
rior y
ear b
alan
ces
-
-
-
-
-
Add:
Add
ition
s/Pu
rcha
ses -
Cas
h
7
1 76
4
-
-
- 71
764
Add:
Add
ition
s - N
on-c
ash
-
-
-
-
-
(Les
s): D
ispos
als
-
-
-
-
-
(Les
s): I
ssue
s
(7
1 35
4)-
-
-
(71
354)
Add/
(Les
s): R
ecei
ved
curr
ent,
not p
aid
(Pai
d cu
rren
t yea
r, re
ceiv
ed p
rior y
ear)
-
-
-
-
-
2019 - 2020 KZN TRANSPORT ANNUAL REPORT284
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
Add/
(Les
s): A
djus
tmen
ts
(28
9)
-
-
-
(289
)
Clos
ing
bala
nce
31 1
25
-
-
- 31
125
2019 - 2020KZN TRANSPORT ANNUAL REPORT 285
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
ANN
EXU
RE 6
Mov
emen
t in
Capi
tal W
ork-
in-P
rogr
ess
MO
VEM
ENT
IN C
APIT
AL W
ORK
-IN-P
ROG
RESS
FO
R TH
E YE
AR E
NDE
D 31
MAR
CH 2
020
Ope
ning
bal
ance
C
urre
nt Y
ear C
apita
l W
IP
Rea
dy fo
r use
(Ass
et
regi
ster
) / C
ontr
act
term
inat
ed
Clo
sing
bal
ance
R’0
00
R’0
00
R’0
00
R’0
00
BUIL
DIN
GS
AND
OTH
ER F
IXED
STR
UCT
URE
S
6 4
82 2
09
1 9
30 5
31
(1 2
54 8
56)
7 1
57 8
84
Dwel
lings
-
-
-
-
Non
-res
iden
tial b
uild
ings
-
-
-
-
Oth
er fi
xed
stru
ctur
es
6
482
209
1 93
0 53
1
(1
254
856)
7 1
57 8
84
TOTA
L
6 4
82 2
09
1 9
30 5
31
(1 2
54 8
56)
7 1
57 8
84
MO
VEM
ENT
IN C
APIT
AL W
ORK
-IN-P
ROG
RESS
FO
R TH
E YE
AR E
NDE
D 31
MAR
CH 2
019
Ope
ning
bal
ance
P
rior p
erio
d er
rors
C
urre
nt Y
ear C
apita
l W
IP
Rea
dy fo
r use
(Ass
et
regi
ster
) / C
ontr
act
term
inat
ed
Clo
sing
bal
ance
R’0
00
R’0
00
R’0
00
R’0
00
R’0
00
BUIL
DIN
GS
AND
OTH
ER F
IXED
STR
UCT
URE
S
6 6
15 3
82
513
584
2 9
35 1
71
(3 5
81 9
28)
6 4
82 2
09
Dwel
lings
-
Non
-res
iden
tial b
uild
ings
-
Oth
er fi
xed
stru
ctur
es
6
615
382
513
584
2 93
5 17
1
(3
581
928)
6 4
82 2
09
TOTA
L
6 6
15 3
82
513
584
2 9
35 1
71
(3 5
81 9
28)
6 4
82 2
09
2019 - 2020 KZN TRANSPORT ANNUAL REPORT286
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
ANN
EXU
RE 7
INTE
R-EN
TITY
ADV
ANCE
S RE
CEIV
ED (n
ote
21 A
ND
note
22)
EN
TITY
C
onfir
med
bal
ance
out
stan
ding
U
ncon
firm
ed b
alan
ce o
utst
andi
ng
Tot
al
3
1/03
/202
0 3
1/03
/201
9 3
1/03
/202
0 3
1/03
/201
9 3
1/03
/202
0 3
1/03
/201
9
R
’000
R
’000
R
’000
R
’000
R
’000
R
’000
PUBL
IC E
NTI
TIES
Curr
ent
RTM
C Le
vies
8 46
6
8 4
66
-
Oth
er4
4
-
Subt
otal
8 47
0 -
- -
8
470
-
TOTA
L
-
-
- 8
470
-
Curr
ent
8 47
0 -
-
-
8 47
0
-
Non
-cur
rent
- -
- -
-
-
2019 - 2020KZN TRANSPORT ANNUAL REPORT 287
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2020
ANN
EXU
RE 8
IMM
OVA
BLE
ASS
ETS
AD
DIT
ION
AL
DIS
CLO
SUR
E
Ref
er to
the
Illus
trativ
e G
uida
nce
for I
mm
ovab
le A
sset
Add
ition
al D
iscl
osur
e do
cum
ent f
or fu
rther
ass
ista
nce
on w
hat t
o in
sert
into
this
Ann
exur
e.Th
e su
gges
ted
wor
ding
and
tabl
es in
the
abov
e-m
entio
ned
docu
men
t are
for i
llust
rativ
e pu
rpos
es o
nly
and
depa
rtmen
ts c
an th
eref
ore
adap
t or i
mpr
ove
wor
ding
to
suit
thei
r spe
cific
circ
umst
ance
s in
ord
er to
com
ply
with
the
Imm
ovab
le A
sset
Gui
de
a) E
xist
ing
Cla
ss 1
and
2 ro
ads;
all r
oads
by
the
finan
cial
yea
r end
ing
31 M
arch
202
2 an
d re
porte
d on
in th
e re
leva
nt im
mov
able
ass
et re
gist
er n
ote
to th
e fin
anci
al
stat
emen
ts;
b) E
xist
ing
Cla
ss 3
road
s; a
ll ro
ads
byth
e fin
anci
al y
ear e
ndin
g 31
Mar
ch 2
024
and
repo
rted
on in
the
rele
vant
imm
ovab
le a
sset
regi
ster
not
e to
the
finan
cial
st
atem
ents
;
The
depa
rtmen
t afte
r con
sulta
tion
with
Offi
ce o
f the
Acc
ount
ant G
ener
al, r
ecei
ved
a di
rect
ive
to re
mov
e al
l com
plet
ed ro
ads
reco
rded
in it
s no
tes
to th
e an
nual
fin
anci
al s
tate
men
ts to
alig
n w
ith th
e re
quire
men
ts o
f the
MC
S.
Had
the
phas
ed in
app
roac
h as
sta
ted
abov
e no
t bee
n im
plem
ente
d th
e de
partm
ent w
ould
hav
e re
cord
ed c
ompl
eted
road
ass
ets,
sta
ted
at fa
ir va
lue
detrm
ined
at
31 M
arch
201
9 pl
us a
ctua
l cos
ts fo
r 201
9/20
, as
stat
ed in
the
note
bel
ow.
MO
VEM
ENT
IN IM
MO
VAB
LE T
AN
GIB
LE C
API
TAL
ASS
ETS
PER
ASS
ET R
EGIS
TER
FO
R T
HE
YEA
R E
ND
ED 3
1 M
AR
CH
202
0
Ope
ning
bal
ance
Valu
e ad
just
men
tsA
dditi
ons
Dis
posa
lsC
losi
ng
bala
nce
R’0
00
R’0
00
R’0
00
R’0
00
R’0
00
BU
ILD
ING
S A
ND
OTH
ER F
IXED
STR
UC
TUR
ES
57
682
235
-
2 01
4 97
6
-
59 6
97 2
11
Oth
er fi
xed
stru
ctur
es
57
682
235
2
014
861
-
59
697
096
TOTA
L IM
MO
VAB
LE T
AN
GIB
LE C
API
TAL
ASS
ETS
5
7 68
2 23
5
- 2
014
977
-
59
697
211
2019 - 2020 KZN TRANSPORT ANNUAL REPORT290
ANNUAL REPORT2019/20
GROWINGTOGETHERKWAZULU-NATAL
VOTE 12
KZN
Tra
nspo
rt C
omm
unic
atio
n_20
20
172 Burger Street |Inkosi Mhlabunzima Maphumulo House Department of Transport | Pietermaritzburg, 3200 Tel: 033 355 8624 | Fax: 033 355 8632
PR280/2020ISBN: 978-0-621-48716-9