contents · election manifesto to this great leader our late struggle icon nelson rholihlahla...
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Contents
1. SECTION A: GENERAL INFORMATION……………………………………………………………………. 5
1.1 DEPARTMENT’S GENERAL INFORMATION…………………………………………………………. 6 1.2 LIST OF ABBREVIATIONS ……………………………………………………………………………… 7 1.3 FOREWORD BY MEC OF THE DEPARTMENT ……………………………………………………… 10 1.4 REPORT BY THE ACCOUNTING OFFICER …………………………………………………………. 11 1.5 STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF THE ACCURACY OF THE
ANNUAL REPORT …………………………………………………………………………………….… 14 1.6 STRATEGIC OVERVIEW ……………………………………………………………………………….. 15 1.7 LEGISLATIVE AND OTHER MANDATES …………………………………………………………….. 15 1.8 ORGANISATIONAL STRUCTURE …………………………………………………………………….. 21 1.9 ENTITIES REPORTING TO THE MEC ………………………………………………………………… 22 2. SECTION B: PERFORMANCE INFORMATION …………………………………………………………… 23
2. PERFORMANCE INFORMATION ……………………………………………………………………… 24 2.1 AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES …………………………….. 24 2.2 OVERVIEW OF DEPARTMENTAL PERFORMANCE ……………………………………………….. 29 2.3 STRATEGIC OUTCOME ORIENTATED GOALS ……………………………………………………. 31 2.4 EXPLANATORY NOTES TO THE PERFORMANCE REPORT ……………………………………. 32 PROGRAMME 1: ADMINISTRATION ……………………………………………………………………………. 33 PROGRAMME 2: LOCAL GOVERNANCE …………………………………………………………………….... 37 PROGRAMME 3: DEVELOPMENT AND PLANNING …………………………………………………….……. 43 PROGRAMME 4: TRADITIONAL INSTITUTIONAL MANAGEMENT …………………………………….…… 49 PROGRAMME 5: HOUSE OF TRADITIONAL LEADERS ……………………………………………….…….. 53 2.6 TRANSFER PAYMENTS ………………………………………………………………………….…….. 57 2.7 CONDITIONAL GRANTS …………………………………………………………………….………….. 57 2.8 DONOR FUNDS ………………………………………………………………………………….………. 57 2.9 CAPITAL INVESTMENT ………………………………………………………………………………… 57 3. SECTION C: GOVERNANCE ………………………………………………………………………………. 59 3.1 INTRODUCTION …………………………………………………………………………………………. 60 3.2 RISK MANAGEMENT ……………………………………………………………………………………. 60 3.3 FRAUD AND CORRUPTION ……………………………………………………………………………. 60 3.4 MINIMISING CONFLICT OF INTEREST ………………………………………………………………. 61 3.5 CODE OF CONDUCT ……………………………………………………………………………………. 61 3.6 HEALTH SAFETY AND ENVIRNMENTAL ISSUES ………………………………………………….. 61 3.7 PORTFOLIO COMMITTEES ……………………………………………………………………………. 62 3.8 SCOPA RESOLUTIONS …………………………………………………………………………………. 81 3.9 PRIOR MODIFICATIONS TO AUDIT REPORTS ……………………………………………………... 83 3.10 INTERNAL CONTROL UNIT …………………………………………………………………………….. 83 3.11 INTERNAL AUDIT AND AUDIT COMMIITTEES ……………………………………………………… 83 3.12 AUDIT COMMITTEE ……………………………………………………………………………………… 85 4. SECTION D: HUMAN RESOURCE MANAGEMENT …………………………………………………….. 89 4.1 INTRODUCTION ………………………………………………………………………………………….. 90 4.2 HUMAN RESOURCES OVERSIGHT STATISTICS …………………………………………………... 92
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5. SECTION E: FINANCIAL INFORMATION …………………………………………………………………. 115 5.1 REPORT OF THE AUDITOR-GENERAL TO THE EASTERN CAPE PROVINCIAL LEGISLATURE ON VOTE NO 7. DEPARTMENT …………………………………………………………………..……. 116 5.2 ANNUAL FINANCIAL STATEMENTS ……………………………………………………………….….. 127 APPROPRIATION STATEMENT ……………………………………………………………………………. 128 NOTES TO THE APPROPRIATION STATEMENT …………………………………...………………...…. 163 STATEMENT OF FINANCIAL PERFORMANCE ………………………………………..…………….…… 165 STATEMENT OF FINANCIAL POSITION ………………………………………………………..…….…… 166 CASH FLOW STATEMENT ………………………………..…………………………………………..….…. 167 ACCOUNTING POLICIES …………………………………………………………………………….……… 168 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (INCLUDING ACCOUNTING POLICIES) .…... 172 ANNEXURES ………………………………………………………………………………………………..… 199
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I have the honour of submitting the Annual Report of the Department of Cooperative Governance and Traditional Affairs for the period 1 April 2017 to 31 March 2018
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HEAD OF DEPARTMENT: MS G GUMBI-MASILELA DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS DATE: 30 AUGUST 2018 _____________________________ HONOURABLE FD XASA (MPL) MEC FOR COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS DATE: 30 AUGUST 2018
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1.1 DEPARTMENT’S GENERAL INFORMATION
Cooperative Government and Traditional Affairs OFFICE OF THE MEC Tyamzashe Building Phalo Avenue Private Bag x 0026 Bhisho 5605 Eastern Cape Republic of South Africa Tel: +27 (0) 40 609 5789 Fax: +27 (0) 40 639 5218 [email protected] OFFICE OF THE HEAD OF DEPARTMENT Tyamzashe Building Phalo Avenue Private Bag x 0035 Bhisho 5605 Eastern Cape REPUBLIC OF SOUTH AFRICA Tel: +27 (0) 40 609 5656/58 Fax: +27 (0) 40 639 2163 [email protected] WEBSITE: www.eccogta.gov.za
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1.2 LIST OF ABBREVIATIONS
AO Accounting Officer
AFS Annual Financial Statements
AG Auditor General
APP Annual Performance Plan
ASGI-SA Accelerated and Shared Growth Initiative of South Africa
BAS Basic Accounting System
BBBEE Broad Based Black Economic Empowerment
BCMM Buffalo City Metropolitan Municipality
CDWs Community Development Workers
CEO Chief Executive Officer
CHDM Chris Hani District Municipality
COIDA Compensation for Occupational Injuries and Diseases Act
CWP Community Work Programme
DBSA Development Bank of Southern Africa
DCF District Coordinating Forum
DCOGTA Department of Co-operative Governance and Traditional Affairs
DIMAFO District Mayoral Forum
DM District Municipality
DORA Division of Revenue Act
DPSA Department of Public Service and Administration
DR&PW Department of Roads and Public Works
DWIF District Wide Infrastructure Forum
EAP Employee Assistance Programme
EDMS Electronic Document Management System
EE Employment Equity
EH Employee Health
EHWP Employee Health and Wellness Programme
EPWP Expanded Public Works Programme
FBS Free Basic Services
GPSSBC General Public Service Sectoral Bargaining Council
GRAP General Recognized Accounting Practices
GTZ German Technical Support
HCT HIV and AIDS Counselling and Testing
HDIs Historically Disadvantaged Individuals
HRDC Human Resource Development Committee
HRM Human Resources Management
ICASA Independent Communications Authority of South Africa
ICT Information and Communication Technology
IDP Integrated Development Plan
IEC Independent Electoral Commission
IEW Integrated Employee Wellness
IGR Inter-Governmental Relations
ISD Institutional Social Development
ISRDP Integrated Sustainable Rural Development Programme
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IYA Imbumba Yamakhosikazi Akomkhulu
IYM In-Year Monitoring
JIPSA Joint Initiative on Priority Skills Acquisition
KPA Key Performance Area
LED Local Economic Development
LGCS Local Government Communication Systems
LG SETA Local Government Sector Education Training Authority
LM Local Municipality
LRA Labour Relations Act, 1995 (Act 66 of 1995)
MDB Municipal Demarcation Board
MEC Member of Executive Council
MER Monitoring, Evaluation and Reporting
MFMA Municipal Finance Management Act
MIG Municipal Infrastructure Grant
MPAC Municipal Public Accounts Committee
MPAT Management Performance Assessment Tool
MPRA Municipal Property Rates Act
MTEF Medium Term Expenditure Framework
MUTAS Municipal Turn Around Strategies
NDMC National Disaster Management Centre
NDP National Development Plan
NMBM Nelson Mandela Bay Municipality
NSDF National Spatial Development Framework
OBA Outcomes Based Approach
OCA Operation Clean Audit
OHS Occupational Health and Safety
ORT DM O R Tambo District Municipality
OSD Occupation-Specific Dispensation
OTP Office of the Premier
PAC Public Accounts Committees
PAIA Promotion of Access to Information Act, 2000 (Act 2 of 2000)
PAJA Promotion of Administrative Justice Act, 2000 (Act 3 of 2000)
PCC Presidential Coordinating Council
PCF Premier's Coordinating Forum
PDMC Provincial Disaster Management Centre
PEC Provincial Executive Committee
PFMA Public Finance Management Act
PCLG Provincial Committees for Local Government
PGDP Provincial Growth & Development Plan
PHOTL Provincial House of Traditional Leaders
PILLIR Policy on Ill Health and Incapacity Retirements
PMDS Performance Management and Development System
PMS Performance Management System
PSCBC Public Service Coordinating Bargaining Council
PSDP Provincial Spatial Development Plan
RMU Revenue Management Unit
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SALGA South African Local Government Association
SCM Supply Chain Management
SDBIP Service Delivery and Budget Implementation Plan
SDIP Service Delivery Improvement Plan
SHE Safety Health Environment
SLA Service Level Agreement
SMS Senior Management Service
UNDP United Nations Development Programme
URP Urban Renewal Programme
WP Wellness Programme
WSP Water Services Provider
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1.3 FOREWORD BY MEC OF THE DEPARTMENT
The year under review takes place at a time when the fifth term of the current political administration is coming to an end. Back then in 2014 we committed ourselves that, Together we move South Africa Forward. We also dedicated our election manifesto to this great leader our late struggle icon Nelson Rholihlahla Mandela. As we end our political term of office, South Africans from all walks of life mounted Centenary celebrations of Mandela and Mama Albertina Nontsikelo Sisulu. Mama Sisulu is a struggle heroine in her own right who made an immense contribution to the fight against racial oppression and white supremacy in the land of our forefathers. We remain inspired by the revolutionary spirits of these martyrs to discharge our government responsibilities in a manner that creates a better life for all including the poor and the working class.
Our vision of creating an integrated, capable, responsive and accountable local government and traditional leadership institution system focussing on the needs of the community is at the apex of our service delivery programmes. This we do by striving for alignment of our programmes to realise our strategic outcome oriented goals to benefit our communities. At the heart of this strategic approach is the road we have chosen for ourselves to rebrand and re-imagine Cogta as a trusted leader that provides integrated, effective and efficient support to local government and traditional leadership institutions. The execution of the Back to Basics (B2B) programme still remains the pillar on which our service delivery programmes are anchored to build a responsive, caring and accountable local government and traditional leadership institutions that deliver quality services to our communities. We strived to get the basics right through the B2B Pillars namely, Putting People and their Concerns First, Sound Financial Management, Basic Service Delivery, Good Governance and Building Capacity. Indeed, we now understand where we are, what type of support to give to municipalities and what needs to be done to improve our performance. It is Cogta’s goal to improve the functioning of municipalities and traditional leadership institutions to serve our rural and urban communities better. Slowly the dark clouds of despair are lifting giving way to the season of hope towards a better life for all the people of the Eastern Cape Province. Our journey continues and we dare not linger, flinch nor disown the cause of the poor. Together we moved Cogta forward to serve our communities better.
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MEC FD XASA DEPARTMENT OF CO-OPERATIVE GOVERANCE AND TRADITIONAL AFFAIRS 30 AUGUST 2018
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1.4 REPORT BY THE ACCOUNTING OFFICER
The Department of Cooperative Governance and Traditional Affairs (COGTA) is mandated by the Constitution of the Republic of South Africa (1996) to support and strengthen the capacity of municipalities and Traditional Leadership Institutions to be able to manage their own affairs, exercise their powers and perform their functions. The financial year under review has been one of the most challenging ones in the economic life of the Province. The Province faced a wide array of socio-economic challenges. We come out of a period where the economic environment has been characterised by high levels of uncertainty in the global outlook, the downward revision of growth forecast rates and, more particular, a protracted period of lower global economic growth is expected. The B2B support package has gone a long way to provide positive support in the
areas of service delivery and compliance. The biggest concern for the department are the audit regression in a number of municipalities. To be able to provide focus and targeted support, the department will propose that municipalities adopt a shared service model of delivery for key services. Capacity building programmes were conducted in collaboration with Stats SA on data analysis in all six District Municipalities for them to understand the economic situation of their communities. The department also supported 7 municipalities to develop and implement Local Economic Development (LED) strategies in with a view of improving the economic development in municipal areas. Out of the 42 000, 43 184 work opportunities were created through the Community Works Programme (CWP) where people are employed to do community work such as cleaning, maintenance and beautification of towns in their selected municipal areas. The only concern about this programme it targets the same people over and over. 5 Local houses were established in September 2017 and they continue to be supported by the department. The Department ensured support and capacitation of Traditional Leadership Institutions to effectively and efficiently perform their statutory and customary obligations.
The department is reviewing its own capacity to position itself to adequately support municipalities to perform to their optimum.
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HEAD OF DEPARTMENT: MS G GUMBI-MASILELA DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS DATE: 30 AUGUST 2018
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OVERVIEW OF THE FINANCIAL RESULTS OF THE DEPARMENT
Departmental Receipts
2017/2018 2016/2017 Estimate Actual
Amount Collected
(Over) Under
Collection
Estimate Actual Amount
Collected
(Over) Under
Collection R'000 R'000 R'000 R'000 R'000 R'000
Sale of goods and services other than capital assets 2 178 987 1 191 2 055 906 1 149
Financial Transaction in assets and liabilities 429 (429) 1 354 (1 354)
Total 2 178 1 416 762 2 055 2 260 (205)
The department is not a major contributor to the Provincial Revenue Fund and all collections are attributed to the sale of tender documents as well as commissions earned from insurance deductions from employees for various schemes on behalf of financial institutions for their contributions to their products. The department collected revenue amounting to R1 416 000 during the year ended 31 March 2018. This revenue collected is less than the budgeted revenue included in appropriation of R2 178 000. There is under collection of R762 000 for the year ended 31 March 2018. Revenue received was surrendered to the Provincial Revenue Fund in terms Section 22 of the PFMA. DEPARTMENTAL SUMMARY
Programme Name 2017/2018 2016/2017
Final Appropriation
Actual Expenditure
(Over) Under Expenditure
% Spent Final Appropriation
Actual Expenditure
R'000 R'000 R'000 R'000 R'000
Administration 249 286 241 454 7 832 96,9% 243 243 231 588
Local Governance 299 160 295 492 3 668 98,8% 282 388 267 123
Development and Planning 197 345 192 862 4 483 97,7% 147 717 126 752
Traditional Institutional Management 326 726 322 272 4 454 98,6% 305 547 299 250
House of Traditional Leaders 29 966 29 928 38 99,9% 27 611 26 918
Total 1 102 483 1 082 008 20 475 98,1% 1 006 506 951 630 Member Remuneration 1 982 1 978 4 99,8% 1 971 1 902
Total 1 104 465 1 083 986 20 479 98,1% 1 008 477 953 532
The department has spent 98.1% of its allocated budget of R1 104 000. An application for a roll-over of unspent
funds amounting to R4.685 million has been submitted to Provincial Treasury for consideration.
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DEPARTMENTAL SUMMARY PER ECONOMIC CLASSIFICATION
2017/2018 Departmental Summary per Economic Classification
Economic Classification Final Appropriation Actual Expenditure (Over) Under Expenditure % Spent
R'000 R'000 R'000 Compensation of Employees 765 465 763 355 2 110 99,7%
Goods & Services 112 010 101 025 10 985 90,2%
Transfers & Subsidies 196 779 192 879 3 900 98,0%
Interest & Rent on Land 9 (9)
Payment for Capital Assets 30 211 26 506 3 705 87,7%
Payment for Financial Assets 212 (212)
Total 1 104 465 1 083 986 20 479 98,1% The department spent 98.1% by the end of the financial year. The details of under expenditure are as follows: -
Compensation of Employees:
The minimal of R2.110 million, representing 0.3 per cent, under-expenditure is due to delays in the filling of
replacement funded posts of Traditional Leaders that is caused by claims and disputes within the families of
Traditional Leaders.
Goods & Services:
The under-expenditure of R10.985 million is due to vigorous implementation of cost containment measures relating
to travelling & subsistence costs and late receipt of invoices relating to oil and fuel for White Fleet as well as
Vodacom account for March 2018. Also savings were realized under Travel and Subsistence due to the
implementation of Cost Containment Measures.
Transfers & Subsidies:
The under-expenditure of R3.9 million is due to the non-submission of invoices by the Amathole District Municipality
for water carting to drought stricken areas of Mnquma Local Municipality. There were also delays in the processing
of leave gratuities due to the non-submission of outstanding documents by beneficiaries.
Capital Assets:
The under-expenditure of R3.705 million is due to non-receipt of invoices relating to the construction of Traditional
Councils for which the roll-over of funds application has been submitted to Treasury for consideration.
Roll-Over:
During the 2017/18 financial year the Department received a roll-over amounting to R1.622 million. The roll over relates to the hiring of consultants for Competency Assessments for Senior Management Staff and appointment of a service provider to implement the Spatial Planning and Land Use Management Act (SPLUMA).
96,9%
98,8%
97,7%
98,6%
99,9%
Administration
Local Governance
Development and Planning
Traditional InstitutionalManagementHouse of Traditional Leaders
PERCENTAGE SPENDING PER PROGRAMME
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1.5 STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF THE ACCURACY OF THE
ANNUAL REPORT
To the best of my knowledge and belief, I confirm the following:
All information and amounts disclosed throughout the Annual Report are consistent. The Annual Report is complete, accurate and is free from any omissions. The Annual Report has been prepared in accordance with the guidelines of the Annual Report as issued by the National Treasury. The Annual Financial Statements (Section 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 were engaged to express an independent opinion on the Annual Financial Statements.
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HEAD OF DEPARTMENT: MS G GUMBI-MASILELA DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS DATE: 30 AUGUST 2018
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1.6 STRATEGIC OVERVIEW
1.6.1 Vision An integrated, capable, responsive and accountable local government and traditional institution system focusing on the needs of the community 1.6.2 Mission To promote a developmental local state and traditional institutions that are accountable, focused on citizen’s priorities; capable of delivering high-quality services consistently and sustainably through Local Government and participatory democracy 1.6.3 Values Our values are people orientated and based on the Batho Pele Principles.
VALUES DEFINITIONS
Consultation We always consult our customers on the level, quality and choices of the services we offer.
Quality We set high standards geared towards effective and efficient services delivery.
Equality We shall give equal access to our services to all, with special emphasis on targeted groups.
Professionalism We believe that our customers are entitled to be treated courteously and with the highest level of professionalism.
Highest ethical standards We shall always maintain zero tolerance towards fraud and corruption
Staff our greatest assets
We believe that our employees are integral to the success of the Department and we will at all times endeavor to ensure that their organizational needs are satisfied.
Responsiveness We pledge to respond speedily and effectively to the needs of stakeholders and communities.
1.7 LEGISLATIVE AND OTHER MANDATES 1.7.1 Constitutional Mandates The Constitution of South Africa, 1996 as amended provides the national overarching framework for the functionality of all Government Departments in South Africa. Chapter 7 outlines the objectives and mandates in respect of Local Government, as the following:
To establish municipalities consistent with national legislation; To support and strengthen the capacity of municipalities; To regulate the performance of municipalities in terms of their functions listed in Schedules 4 and 5 of the
Constitution, 1996; To intervene where there is non-fulfilment of legislative, executive or financial obligations; and To promote Developmental Local Government
Regarding Traditional Leadership the Constitution of South Africa, 1996 as amended states the following on Recognition in Section 211:
The institution, status and role of Traditional Leadership, according to customary law, are recognised subject to the Constitution.
A Traditional Leadership Institution that observes a system of customary law may function subject to any
applicable legislation and customs, which includes amendments to, or repeal of, that legislation or those customs.
The courts must apply customary law when that law is applicable, subject to the Constitution and any
legislation that specifically deals with customary law. The roles of Traditional Leaders are spelt out in Section 212 of the Constitution of South Africa, 1996.
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National legislation may provide for the role for Traditional Leadership as an institution at local level on matters affecting local communities.
To deal with matters relating to Traditional Leadership, the role of Traditional Leaders, customary law and the customs of communities observing a system of customary law:
National or Provincial legislation may provide for the establishment of Houses of Traditional Leaders and
National legislation may establish a Council of Traditional Leaders. 1.7.2 Local Government Legislation
Legislation Description
Municipal Structures Act, 1998 & 2000 (Act 117 of 1998 and Amendment Act 33 of 2000)
The Acts provide for the establishment of municipalities in accordance with the requirements relating to and the types of municipalities. Provide for an appropriate division of functions and powers between categories of municipalities; and regulate the internal systems, structures and Office-bearers of municipalities.
Municipal Systems Act, 2000 (Act 32 of 2000)
Provides for the core principles, mechanisms, and processes that are necessary to enable municipalities to move progressively towards the social and economic up-liftment of local communities and ensure universal access to the essential services that are affordable to all.
Municipal Finance Management Act, 2003 (Act 56 of 2003)
This Act aims to secure sound and sustainable management of the financial affairs of municipalities as well as to establish norms and standards against which the financial affairs can be monitored and measured.
Municipal Property Rates Act, 2004 (Act 6 of 2004)
This Act aims to regulate the power of a municipality to impose rates on property, exclude certain properties from rating in the national interest, make provision for municipalities to implement a transparent and fair system of exemptions, reduce and rebate through their rating policies, make provision for fair and equitable valuation methods of properties, make provision for an objection and appeal process and amend the Local Government.
Municipal Demarcation Act, 1998 (Act 27 of 1998 as amended)
Provides for the criteria and procedures for the determination of municipal boundaries by an independent authority.
Disaster Management Act, 2002 (Act 57 of 2002)
This Act provides for integrated and coordinated disaster management focused on rapid and effective response to disasters and the reduction of disaster risk. It also provides for the establishment of Provincial and Municipal Disaster Management Centers.
Intergovernmental Relations Framework Act, 2005 (Act 13 of 2005)
This Act aims to establish a framework for National Government as well as Provincial Governments and municipalities to promote and facilitate inter-governmental relationships and to provide mechanisms and procedures to facilitate the settlement of intergovernmental disputes.
Disaster Management Act, 2002 (Act 57 of 2002)
The Act provides an integrated and coordinated Disaster Management Policy that focuses on preventing or reducing the risk of disasters, mitigating the severity of disasters, emergency preparedness, rapid and effective response to disasters and post-delivery recovery. The establishment of National, Provincial and Municipal Disaster Management Centers; Disaster Management Volunteers and matters incidental thereto.
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1.7.3 Traditional Affairs Legislation
Legislation Description House of Traditional Leaders Act, 1995 (Act 1 of 1995)
Provides for the establishment of the House of Traditional Leaders.
Traditional Leadership and Governance Framework Act, 2003 (Act 41 of 2003
Provides for the functions and roles of Traditional Leaders.
Provincial Traditional Leadership and Governance Act, 2005 (Act 4 of 2005)
Provides for the establishment of the Provincial House of Traditional Leaders.
1.7.4 Further Pieces of Local Government Legislation
Administration and Control of Townships in Black Areas Regulations. Broad Based Black Economic Empowerment Act, 2003 (Act 53 of 2003) Control of Access to Public Premises Act, 1985 (Act 53 of 1985) Environment Impact Assessment Regulations: Implementation of Sections 21, 22, 26 of the Environment
Conservation Act, 1998 (Act 107 1998) Fire Brigade Services Amendment Act; 2000 (Act 14 of 2000) Inter-governmental Relations Framework Act, 2005 (Act 13 of 2005) Land Survey Act, 1997 (Act No 8 of 1997) Land Tenure in Towns Regulations Land Use Planning Ordinance 15 of 1985 Less Formal Township Establishment Act,1991 (Act 113 of 1991) Municipal Act of 1985 (Ciskei) Municipal Act of 1979 (Transkei) Municipal Ordinance 20 of 1974 (Cape Provincial Administration) Physical Planning Act 1991 (Act 125 of 1991) Re-determination of the Boundaries of Cross-Boundary Municipalities Act, 2005 (Act 6 of 2005) Townships Proclamation No R293 of 1962 Removal of Restrictions Act, 1967 (Act 84 of 1967) Remuneration of Public Office Bearers Act,1998 (Act 20 of 1998) Spatial Planning and Land Use Management Act 2013 (Act 16 of 2013) Townships Ordinance 33 of 1934
1.7.5 Transversal Institution Legislation
Basic Conditions of Employment Act, 1997 (Act 75 of 1997 as amended).
To give effect to the right to fair labor practices referred to in section 23(1) of the Constitution, 1996 by establishing and making provision for the regulation of basic conditions of employment; and thereby to comply with the obligations of the Republic of South Africa as a member state of the International Labor Organization; and to provide for matters related therewith.
Employment Equity Act, 1998 (Act. 55 of 1998).
To promote equality, eliminate unfair discrimination in employment and to ensure the implementation of employment equity measures to redress the effects of discrimination; to achieve a diverse and efficient workforce broadly representative of the demographics of the Province of the Eastern Cape.
Labor Relations Act, 1995 (Act 66 of 1995). To regulate and guide the employer in recognizing and fulfilling its role in effecting labor peace and the democratization of the workplace.
Occupational Health and Safety Act, 1993 (Act 85 of 1993).
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To provide for the health and safety of persons at work and for the health and safety of persons in connection with the use of plant and machinery; the protection of persons other than persons at work against hazards to health and safety arising out of or in relation with the activities of persons at work; to establish an advisory council for occupational health and safety; and to provide for matters related therewith.
Public Service Act, 1994 (Act 103 of 1994 as amended by Act 30 of 2007). To provide for the organisation and administration of the public service of the Republic of South Africa, the regulation of the conditions of employment, terms of office, discipline, retirement and discharge of members of the public service, and matters related therewith.
Skills Development Act, 1998 (Act 97 of 1998). To provide an institutional framework to devise and implement national, sector and workplace strategies to develop and improve the skills of the South African workforce; to integrate those strategies within the National Qualifications Framework contemplated in the South African Qualifications Authority Act, 1995; to provide for learner ships that lead to recognised occupational qualifications; to provide for the financing of skills development by means of a levy-grant scheme and a National Skills Fund; to provide for and regulate employment services; and to provide for matters connected therewith.
Public Finance Management Act, 1999 (Act 1 of 1999).
To regulate financial management in the National and Provincial Governments; to ensure that all revenue, expenditure, assets and liabilities of those governments are managed efficiently and effectively; to provide for the responsibilities of persons entrusted with financial management in those governments; and to provide for matters connected therewith.
Skills Development Levies Act, 1999 (Act 9 of 1999). To provide any public service employer in the national or provincial sphere of Government with exemption from paying a skills development levy; and for exemption from matters related therewith.
Promotion of Access to Information Act, 2000 (Act 2 of 2000). To give effect to the constitutional right of access to any information held by the State and any information that is held by another person and that is required for the exercise or protection of any rights; and to provide for matters related therewith.
Promotion of Administrative Justice Act, 2000 (Act 2 of 2000).
To give effect to the right to administrative action that is lawful, reasonable and procedurally fair and to the right to written reasons for administrative action as contemplated in section 33 of the Constitution of the Republic of South Africa, 1996; and to provide for matters incidental thereto.
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1.7.6 Policy Strategy, Guidelines and Mandates
Chief Directorate/Directorate Name of the Policy Corporate Secretariat, Policy Development, Management and Coordination
Guidelines For Policy Development
Corporate Secretariat, Policy Development Management and Coordination
Meeting Planning Manual
Corporate Secretariat, Policy Development, Management and Coordination
Administrative Procedure: Procedure For Management and Coordination of the Policy Process
Human Resource Management Acting Policy Human Resources Planning and Development Bursary Policy Human Resource Planning and Development Disability Strategy Human Resource Planning and Development Internship Policy Human Resource Management Leave Management Policy Human Resource Management Overtime and Hours of Work Policy Human Resource Planning and Development Performance Management and Development Policy Organisational Transformation Records Management Policy Human Resource Management Recruitment and Selection Policy Human Resource Management Resettlement Policy Human Resource Planning and Development Retention Strategy Labour Relations Sexual Harassment Policy Human Resources Management Special Leave Policy Labour Relations Strike Management Policy Labour Relations Suspension Policy Human Resources Planning and Development Training Policy Labour Relations Abscondment Policy Human Resource Management Dress Code Policy Human Resources Management Employee Wellness Policy Human Resources Management Exit Management Policy Organisational Transformation Job Evaluation Policy Human Resource Management Persal Management Policy Human Resource Management Smoking Policy Human Resources Management Transfer Policy Security Management and Anti-Corruption Security Policy Municipal Support & Monitoring Funds Transfer and Monitoring Financial Accounting Services Travel Subsistence Policy Financial Accounting Services Debt write-off Policy Financial Accounting Services Management of debts and Recovery Policy Supply Chain Management Acquisition Management Supply Chain Management Demand Management Supply Chain Management Cellular Policy Supply Chain Management Compliance Management Municipal Infrastructure Services MIG PMU Guidelines Municipal Infrastructure Services MIG Policy Framework Municipal Infrastructure Services MIG Processes and Procedures Municipal Infrastructure Services MIG Unit Costs Guidelines Municipal Infrastructure Services ISD Guidelines Traditional Leadership Institutional Services Payment of Gratuity Traditional Leadership Institutional Services Review of Acting Appointments Traditional Leadership Institutional Services Moratorium of New Creation of Chieftainship Traditional Leadership Institutional Services Procedure Manual
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Chief Directorate/Directorate Name of the Policy Traditional Leadership Institutional Service Interim Policy for the Management of Vehicles Allocated to
Kings and Executive Committee Members Traditional Leadership Institutional Services Policy on Logistical Arrangement Towards Funerals and
Installations Ceremonies for Traditional Leaders and Former Iikumkani and Wedding Ceremonies of Iikumkani
Strategic Planning Strategic Planning Guidelines on Strategic Planning Disaster Management Disaster Risk Management Framework Traditional Affairs Hand Book on the Tools of Trade for Traditional Leaders House of Traditional Leaders Standing Rules and Orders of the Eastern Cape House of
Traditional Leaders House of Traditional Leaders The White Paper on Traditional Leadership and Governance,
2003 Risk Management Risk Management Policy Special Programmes Youth Policy Special Programmes Disability Policy Special Programmes Gender Policy Monitoring and Evaluation Monitoring & Evaluation Policy Human Resources Management Recruitment and Selection Policy Human Resources Management Resettlements Policy Strategic Management Strategic Planning Guidelines Traditional Affairs Training and Development of Traditional Leaders ICT Policy Internet and email Policy ICT Policy ICT Security Policy ICT Policy Password Policy Employee Relations and Wellness Consequence Management Policy
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1.8 ORGANISATIONAL STRUCTURE
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1.9 ENTITIES REPORTING TO THE MEC Name of entity Legislation Nature of business Planning Advisory Board
Land Use Planning Ordinance,1985 (15 of 1985)
Consideration of development application and appeals as well as the removal of title restrictions for the former Cape Provincial Administration and former Transkei areas.
Townships Board Township Ordinance 1934 (33 of 1934)
Consider development applications, subdivisions, consolidations and appeals for the former Transkei area.
Land Use Planning Board
The Land Use Regulation Act, 1987 (Act 15 of 1987)
Consider development applications, subdivisions, consolidations and appeals as well as the removal of title restrictions for the former Ciskei area.
Valuation Appeals Board
Municipal Property Rates Act, 2004 (Act 6 of 2004)
Consider Appeals relating to objections to property values by property owners in municipalities.
The above entities have no effect on the Annual Financial Statements of the Department.
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2. PERFORMANCE INFORMATION 2.1 AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES
37 - 42
43 - 48
49 - 52
24
25
26
27
33 to 56
28
2.2 OVERVIEW OF DEPARTMENTAL PERFORMANCE 2.2.1 Service Delivery Environment Performance information, (i.e. information on predetermined objectives), is key to effective management planning,
budgeting, implementation, monitoring, evaluation and reporting. Measuring performance ensures that policy, planning, budgeting and reporting are aligned in order to achieve improved service delivery. Performance information indicates how well an institution is meeting its aims and objectives, and which policies and processes are working. Making the best use of available data and knowledge is crucial for improving the execution of the Department’s mandate. Performance information also facilitates effective accountability, enabling legislators, members of the public and other interested parties to track progress of the Department’s activities, identify the scope for improvement and better understand the issues involved. The performance information reported in the annual report enables parliament, the provincial legislature and the public to track the Department’s performance, and to hold it accountable. Performance information also needs to be available to managers at each stage of the planning, budgeting and reporting cycle so that they can adopt a results-based approach to managing service delivery. This approach emphasises planning and managing with a focus on desired results, and managing inputs and activities to achieve these results. The Department ensured that there is alignment in terms of the strategic objectives and its associated targets between the Strategic Plans, Annual Performance Plans and budget documents. The programme performance clearly reports on the Department’s performance against service delivery objectives and targets as identified in the Strategic Plans, Annual Performance Plans and budget documents. 2.2.2 Service Delivery Improvement Plan
In accordance with the Public Service Regulations, Chapter 1, Part III C, all Departments are required to develop a Service Delivery Improvement Plan (SDIP) and to publish an annual statement of public service commitment which will set out the Department’s service standards that citizens and customers can expect and which will serve to explain how the Department will meet each of the standards. The following tables reflect the components of the SDIP as well as progress made in the implementation of the plans.
2.2.2.1 Main services and standards
Main services Beneficiaries Current/actual standard of service
Desired standard of service
Actual achievement
Support strategies and capacity for Local Economic Development (LED) and Urban and Rural Development to create decent work and sustainable livelihoods.
Municipalities Six municipalities supported to supplement LED capacity.
Six municipalities to be supported to supplement LED capacity.
Six municipalities were supported to supplement LED capacity.
Eight municipalities supported to implement LED projects in line with LED strategies.
Eight municipalities to be supported to implement LED projects in line with LED strategies.
Eight municipalities were supported to implement LED projects in line with LED strategies.
Seven towns supported to promote revitalization programme.
Seven towns to be supported to promote revitalization programme.
Seven towns were supported to promote revitalization programme.
29
Main services Beneficiaries Current/actual standard of service
Desired standard of service
Actual achievement
Improve municipal capacity for infrastructure development programmes in relation to provision of Free Basic Services (FBS)
Municipalities 42 municipalities were supported to implement its indigent policies.
42 municipalities to be supported to delete implement its indigent policies.
42 municipalities were supported to implement its indigent policies.
Facilitate participation of traditional institutions and traditional communities in developmental initiatives
Traditional Leaders, traditional communities and Imbumba yamakhosikazi (IYA)
Eight Traditional Councils supported on formulation of community development plans.
Eight Traditional Councils to be supported on the formulation of community development plans.
Eight Traditional Councils were supported on formulation of community development plans.
2.2.2.2 Batho Pele arrangements with beneficiaries
Current/actual arrangements Desired arrangements Actual achievements Imbizo and outreach programmes to be conducted throughout the province.
Imbizo and outreach programmes conducted throughout the province.
Departmental communication strategy has been reviewed and approved.
2.2.2.3 Service delivery information tool
Current/actual arrangements Desired arrangements Actual achievements Departmental Communication Action Plan Development
Departmental Communication Action Plan Development to be in terms of Provincial Communication National Framework to communicate the department programmes.
Departmental Communication Action Plan has been reviewed and approved.
Departmental Communication Action Plan reviewed.
Reviewed Communication Action Plan to be in place.
Departmental Communication Action Plan was developed and implemented.
2.2.2.4 Complaint mechanisms
Current/actual complaints mechanism
Desired complaints mechanism
Actual achievements
Petitions Management Framework Petitions Management Action Plan to be in place.
Petitions Management Action Plan developed and implemented.
2.2.3 Organisational Environment 2.2.3.1 The department consists of five programmes, namely:
Programme 1 – Administration Programme 2 – Local Governance Programme 3 – Development and Planning Programme 4 – Traditional Institutional Management Programme 5 – House of Traditional Leaders
30
2.2.3.2 Six district offices are currently in operation, namely: Sarah Baartman District Office Joe Gqabi District Office Amathole District Office Chris Hani District Office OR Tambo District Office Alfred Nzo District Office
2.2.3.3 List of strategic posts filled:
Head of Department Chief Director: Strategic Management and Communication Implemented Services Chief Director: IGR & District Co-ordination Chief Director: Corporate Services Chief Director: Municipal Development and Planning
2.2.4 Key policy developments and legislative changes IGR and District Coordination 2017-2018 Achievement The Department opened two offices in Alfred Nzo District and OR Tambo to serve as COGTA District Support Centres (DSCs). The process of setting-up well-resourced DSCs in all Districts is a strategic shift to decentralize COGTA nearer and quicker to Municipalities and Traditional Institutions. A PLGCIF and MOU was developed to strengthen coordination and collaborations between Provincial and Local Government. Throughout the year, various IGR platforms were created organised by COGTA in the Province. This includes a Provincial IGR Review Session that revived the Provincial IGR system. There is cooperation between local government and provincial government and four MuniMEC sessions were held successfully on quarterly basis. IGR organized various outreach programmes to increase community participation and bring the Department closer to the community and stakeholders. DSCs and IGR increased the momentum of integrative planning and coordination of support to municipalities and traditional leadership institutions. The broad range of support included support for operation masiphathisane war rooms, monitoring compliance with legislations and coordination of support programmes. 2.3 STRATEGIC OUTCOME ORIENTATED GOALS PROGRAMME PROGRAMME STRATEGIC GOALS PROGRAMME 1 Strategic Goal 1
An enabling environment to enhance service delivery through integrated support services PROGRAMME 2 Strategic Goal 2
To strengthen municipal institutional capacity to promote governance and effective service delivery
PROGRAMME 3 Strategic Goal 3 Effective and efficient planning and development in municipalities
Strategic Goal 4 Liveable, integrated cities, towns and rural areas that provide basic income security Strategic Goal 5 To have enabling viable, sustainable developmental municipalities that deliver basic services
PROGRAMMES 4 & 5 Strategic Goal 6 An enabling service environment in traditional leadership institutions to improve socio-economic development through integrated support services
31
2.4 EXPLANATORY NOTES TO THE PERFORMANCE REPORT
2.4.1 The tables in the Annual Report on performance information will reflect the following:
Actual outputs achieved during 2016/2017. The planned targets as per the 2017/18 Annual Performance Plan and the actual outputs for the financial
year under review. Hard evidence on performance per indicator as an additional disclosure. The comments on all deviations from the set targets, whether positive or negative.
2.4.2 Changes to the planned targets in the Annual Performance Plan 2017/18 and the Annual Report
APP No. Programme Indicator Change Reasons 1.8 One % of ICT strategy implemented Disclosure of
inconsistency between APP and TIDs corrected
The KPI targets in the MTEF and quarterly targets is in % and TIDs in numbers
1.10 One Number of functional IGR structure supported
Disclosure of municipalities disclosed in TID
Municipalities were disclosed as previously omitted in TID
2.9.9 Two Number of municipalities supported with community participation and citizen empowerment partnerships
Enoch Mgijima LM was double counted and second deleted and replaced with Ndlambe LM
Correction of the listed municipalities in the Operational Plan
2.10.10 Two Number of municipalities supported to have functional public participation units
Double counting of Enoch Mgijima LM and Walter Sisulu LM and add Ndlambe LM
Correction of the listed municipalities in the Operational Plan
3.16.16 3.17.17
Three Number of work opportunities created through the CWP and Number of EPWP work opportunities created through CWP
The listed Nkonkobe and Nxuba LMs should be replaced with Raymond Mhlaba LM
The new amalgamated LM is Raymond Mhlaba
3.14.14 Three Number of implemented to support Led capacity
The indicator is not titled the same in the APP, TiD and Operational Plan
The indicator is replaced with “Number of municipalities supported to supplement LED capacity”.
3.21 Three Number of municipalities supported with Provincial Intervention Projects
Inconsistency between APP and TID on the indicator name
The indicator name in TID must be replaced to be similar as APP
3.23 Three Number of municipalities supported to implement indigent policies
Target in APP 39 Quarterly targets 10,10,10 and 9
Corrected target in APP 36 and quarterly targets 9,9,9,9
3.24 Three Number of municipalities supported to assist households to access free basic services (i.e. Water Sanitation, Electricity and Refuse Removal)
Target in APP 39 Quarterly targets 10,10,10 and 9
Corrected target in APP 36 and quarterly target 9,9,9,9
4.3.3 Four Number of voter education sessions conducted for election for institutions of Traditional Leadership
Target in second quarter omitted
Include target in the second quarter to add up to the 3 targeted for the annual
5.1 Five Number of signed performance reports submitted towards informing management on the extent to which the House of Traditional Leaders is performing
The indicator only appears in the APP and not TID
Technical description for the indicator now developed as a supplementary disclosure.
32
33
PROGRAMME 1: ADMINISTRATION
2.5.1.1 Strategic Goals 1 and 2
An enabling environment to enhance service delivery through integrated support services To strengthen municipal institutional capacity to promote governance and effective service delivery
2.5.1.2 Strategic Objectives 1
To promote excellence in leadership, good governance, corporate services and financial management to achieve clean administration
To improve municipal performance, monitoring and evaluation services through effective and coordinated hands on support
2.5.1.3 Programme Purpose
To give effective strategic leadership and proficient administration support services to the Department of Cooperative Governance and Traditional Affairs
2.5.1.4 Sub-Programmes
Sub-Programmes Sub-Programme Purpose 1.1 Office of the MEC To provide political direction and set policy priorities for intervention and play
an oversight over the department to ensure alignment to its mandate and mainstreaming the needs of vulnerable groups.
1.2 Corporate Services To provide efficient and effective corporate support services to the Department.
34
2.
5.1.
5 Li
nkin
g Pe
rfor
man
ce w
ith B
udge
t Allo
catio
n
PRO
GRA
MM
E 1:
ADM
INIS
TRAT
ION
Su
b-Pr
ogra
mm
e Na
me
2017
/ 20
18
2016
/ 20
17
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
(O
ver)
Un
der
Expe
nditu
re
% S
pent
Fi
nal A
ppro
pria
tion
Act
ual
Expe
nditu
re
(Ove
r)
Und
er
Expe
nditu
re
% S
pent
R’00
0 R’
000
R’00
0
R’00
0 R
’000
R
’000
Offi
ce o
f the
MEC
7
259
6 73
2 52
7 92
,7%
6
560
6 04
5 51
5 92
,1%
Co
rpor
ate
Serv
ices
24
2 02
7 23
4 72
1 7
306
97,0
%
236
683
225
543
11 1
40
95,3
%
Tota
l 24
9 28
6 24
1 45
3 7
833
96,9
%
243
243
231
588
11 6
55
95,2
%
PRO
GR
AM
ME
1: A
DM
INIS
TRA
TIO
N
SUB
-PR
OG
RA
MM
E 1.
1- O
FFIC
E O
F TH
E M
EC
Perfo
rman
ce In
dica
tor/M
easu
re
Actu
al a
chie
vem
ent
2016
/17
Plan
ned
Targ
et
2017
/18
Actu
al A
chie
vem
ent
2017
/18
Devi
atio
n fro
m p
lann
ed
targ
et to
act
ual
achi
evem
ent 2
017/
18
Com
men
ts o
n de
viat
ions
Stra
tegi
c O
bjec
tive
1: -
To p
rom
ote
exce
llenc
e in
lead
ersh
ip, g
ood
gove
rnan
ce, c
orpo
rate
ser
vice
s an
d fin
anci
al m
anag
emen
t to
achi
eve
clea
n ad
min
istr
atio
n.
Num
ber o
f mun
icip
aliti
es s
uppo
rted
to ro
ll-ou
t gen
der
polic
y fra
mew
ork
0 8
8 0
No
devi
atio
n
Prov
ided
effe
ctiv
e ov
ersi
ght f
unct
ion
on th
e D
epar
tmen
t se
rvic
e de
liver
y to
Loc
al G
over
nmen
t and
Tra
ditio
nal
Lead
ersh
ip In
stitu
tions
4 4
4 0
No
devi
atio
n
35
SU
B-P
RO
GR
AM
ME
1.2-
CO
RPO
RA
TE S
ERVI
CES
Perfo
rman
ce In
dica
tor/M
easu
re
Actu
al a
chie
vem
ent
2016
/17
Plan
ned
Targ
et
2017
/18
Actu
al
Achi
evem
ent
2017
/18
Devi
atio
n fro
m
plan
ned
tar
get t
o ac
tual
ach
ieve
men
t 20
17/1
8
Com
men
ts o
n de
viat
ions
Stra
tegi
c O
bjec
tive:
1 -
To p
rom
ote
exce
llenc
e in
lead
ersh
ip, g
ood
gove
rnan
ce, c
orpo
rate
ser
vice
s an
d fin
anci
al m
anag
emen
t to
achi
eve
clea
n ad
min
istr
atio
n.
Stra
tegi
c O
bjec
tive:
7 -
To im
prov
e m
unic
ipal
per
form
ance
, mon
itorin
g an
d ev
alua
tion
serv
ices
thro
ugh
effe
ctiv
e an
d co
ordi
nate
d ha
nds-
on s
uppo
rt.
Prov
ided
com
plia
nce
with
all
legi
slat
ive
and
stat
utor
y re
quire
men
ts to
war
ds th
e ac
hiev
emen
t of d
epar
tmen
tal p
riorit
ies
and
deliv
erab
les
4 48
48
0
No
devi
atio
n
Num
ber o
f rep
orts
on
regi
ster
ed fr
aud,
cor
rupt
ion
and
mal
adm
inis
tratio
n ca
ses
inve
stig
ated
7
8 7
-1
The
dela
y in
the
inve
stig
atio
n w
as
due
to n
on-c
oope
ratio
n of
spe
cific
w
itnes
ses
in o
ne m
atte
r. Le
vel o
f MPA
T sc
ore
achi
eved
to e
nhan
ce th
e de
partm
ent’s
pe
rform
ance
tow
ards
ser
vice
del
iver
y N
ew
4 3,
0 -1
,0
The
Dep
artm
ent d
id n
ot p
erfo
rmed
w
ell o
n th
e 4
KPAs
of t
he N
atio
nal
Man
agem
ent P
erfo
rman
ce
Asse
ssm
ent T
ool (
MPA
T).
A re
view
ed C
omm
unic
atio
n Ac
tion
Plan
in p
lace
1
1 1
0 N
o de
viat
ion
Num
ber o
f ski
lls d
evel
opm
ent i
nter
vent
ions
adm
inis
tere
d
4 4
4 0
No
devi
atio
n
% o
f IC
T st
rate
gy im
plem
ente
d 10
0%
100%
78
%
-22%
Tr
easu
ry h
ad p
lace
d m
orat
oriu
m o
n th
e pr
ocur
emen
t of t
elep
hone
sys
tem
an
d th
is w
as li
fted
on 1
Jun
e 20
17.
Num
ber o
f rep
orts
on
mun
icip
al s
uppo
rt pr
ogra
mm
es
coor
dina
ted
at M
etro
/ D
istri
ct le
vels
. 16
24
22
-2
Th
ere
was
no
staf
f com
plem
ent a
t Al
fred
Nzo
and
OR
Tam
bo d
urin
g th
e fir
st q
uarte
r. N
umbe
r of f
unct
iona
l IG
R s
truct
ures
sup
porte
d 16
39
45
+6
Su
ppor
t w
as p
rovi
ded
to 6
add
ition
al
mun
icip
aliti
es a
s pe
r the
ir re
ques
t. N
umbe
r of o
utre
ach
prog
ram
mes
sup
porte
d w
ith te
chni
cal
assi
stan
ce
8 8
11
+3
Mor
e ou
treac
h pr
ogra
mm
es w
ere
supp
orte
d th
an p
lann
ed d
ue to
de
man
d.
36
37
PROGRAMME 2: LOCAL GOVERNANCE
2.5.2.1 Strategic Goal 2 To strengthen municipal institutional capacity to promote governance and effective service delivery. 2.5.2.2 Strategic Objectives
To improve effective management support on municipal administration matters within the regulatory framework
To promote effective financial management to municipalities for clean financial management in accordance with the applicable Acts
To improve public trust and credibility in local government through public participation To facilitate improved functionality of 39 municipal institutions through the complete implementation of
individual performance management and development systems aligned to the organisational performance management systems
To improve municipal capacity assessment, capacity building and ICT through the provisioning of effective high quality management support
To improve municipal performance, monitoring and evaluation service through effective and coordinated hands-on support
2.5.2.3 Programme Purpose
To ensure the transformation of developmental local government by strengthening municipal institutions that will be responsive to the needs of the communities
2.5.2.4 Sub-Programmes Sub-Programmes Sub-Programme Purpose 2.1 Municipal Administration To provide support services and monitor the effective municipal
administrative matters within the regulatory framework. 2.2 Municipal Finance To provide support services and monitor the implementation of efficient
and effective financial management systems in municipalities in accordance with the applicable acts
2.3 Public Participation To deepen democracy for better service delivery. 2.4 Capacity Development To provide support and management services to municipalities in
respect of capacity building. 2.5 Municipal Performance Monitoring, Reporting and Evaluation
To provide effective, coordinated and hands-on support to municipalities, improve performance, monitoring, reporting and evaluation services
38
2.
5.2.
4 Li
nkin
g Pe
rfor
man
ce w
ith B
udge
t Allo
catio
n
PRO
GRA
MM
E 2:
LO
CAL
GO
VERN
ANCE
Su
b-Pr
ogra
mm
e Na
me
2017
/ 20
18
2016
/ 20
17
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
(O
ver)
Un
der
Expe
nditu
re
% S
pent
Fi
nal A
ppro
pria
tion
Act
ual
Expe
nditu
re
(Ove
r)
Und
er
Expe
nditu
re
% S
pent
R’00
0 R’
000
R’00
0
R’00
0 R
’000
R
’000
Mun
icpa
l Adm
inis
tratio
n 29
935
29
361
57
4 98
,1%
28
838
28
213
62
5 97
,1%
M
unic
pal F
inan
ce
87 6
36
87 1
89
447
99,5
%
57 7
04
54 8
03
2 90
1 95
,0%
M
unic
pal P
ublic
Par
ticip
atio
n 16
9 90
1 16
8 13
1 1
770
99,0
%
166
210
157
009
9 20
1 94
,5%
M
unic
pal C
apac
ity D
ev
8 78
5 8
540
245
97,2
%
10 5
95
10 3
03
292
97,2
%
Mun
icpa
l Per
form
ance
2
903
2 27
1 63
2 78
,2%
19
041
16
795
2
246
88,2
%
Tota
l 29
9 16
0 29
5 49
2 3
668
98,8
%
282
388
267
123
15 2
65
94,6
%
PRO
GR
AM
ME
2: L
OC
AL
GO
VER
NA
NC
E SU
B-P
RO
GR
AM
ME
2.1-
MU
NIC
IPA
L A
DM
INIS
TRA
TIO
N
Perfo
rman
ce In
dica
tor/M
easu
re
Actu
al
achi
evem
ent
2016
/17
Plan
ned
Targ
et
2017
/18
Actu
al
Achi
evem
ent
2017
/18
Devi
atio
n fro
m p
lann
ed
targ
et to
act
ual
achi
evem
ent 2
017/
18
Com
men
ts o
n de
viat
ions
Stra
tegi
c O
bjec
tive:
2 -
To im
prov
e ef
fect
ive
man
agem
ent s
uppo
rt o
n m
unic
ipal
adm
inis
trat
ion
mat
ters
with
in th
e re
gula
tory
fram
ewor
k.
Num
ber o
f mun
icip
aliti
es a
sses
sed
in te
rms
of c
ompl
ying
with
rele
vant
le
gisl
atio
n an
d B2
B ac
tion
plan
39
39
39
0
No
devi
atio
n
Perc
enta
ge o
f mun
icip
aliti
es w
hose
sec
tion
12 n
otic
es h
ave
been
am
ende
d 10
0%
100%
10
0%
0 N
o de
viat
ion
Perc
enta
ge o
f mun
icip
aliti
es g
iven
inte
nsiv
e su
ppor
t to
rest
ore
prop
er fu
nctio
ning
10
0%
100%
10
0%
0 N
o de
viat
ion
Num
ber o
f mun
icip
aliti
es s
uppo
rted
to e
nhan
ce e
thic
al c
ondu
ct
New
39
38
-1
Am
atho
le D
M d
eclin
ed s
uppo
rt fro
m
the
depa
rtmen
t.
39
SU
B-P
RO
GR
AM
ME
2.2-
MU
NIC
IPA
L FI
NA
NC
E Pe
rform
ance
Indi
cato
r/Mea
sure
Ac
tual
ac
hiev
emen
t 20
16/1
7
Plan
ned
Targ
et
2017
/18
Actu
al
Achi
evem
ent
2017
/18
Devi
atio
n fro
m p
lann
ed
targ
et to
act
ual
achi
evem
ent 2
017/
18
Com
men
ts o
n de
viat
ions
Stra
tegi
c O
bjec
tive:
3 -
To p
rom
ote
effe
ctiv
e fin
anci
al m
anag
emen
t to
mun
icip
aliti
es fo
r cle
an fi
nanc
ial m
anag
emen
t in
acco
rdan
ce w
ith th
e ap
plic
able
Act
s
Num
ber o
f mun
icip
aliti
es m
onito
red
on t
he im
plem
enta
tion
of A
udit
Res
pons
e Pl
an b
ased
on
the
2015
/201
6 au
dit o
utco
mes
45
16
38
+2
2 Af
ter t
he a
naly
sis
of th
e na
ture
of
supp
ort g
iven
to m
unic
ipal
ities
, de
partm
ent r
ealis
ed th
e ne
ed to
su
ppor
t all
39 m
unic
ipal
ities
sin
ce
natu
re o
f sup
port
was
in
terd
epen
dent
.
Num
ber o
f mun
icip
aliti
es s
uppo
rted
to im
prov
e re
venu
e m
anag
emen
t and
de
bt c
olle
ctio
n
33
20
39
+19
Num
ber o
f mun
icip
aliti
es m
onito
red
on th
e su
bmis
sion
of a
nnua
l and
ov
ersi
ght r
epor
ts
45
39
39
0 N
o de
viat
ion
Num
ber o
f mun
icip
aliti
es s
uppo
rted
and
mon
itore
d to
hav
e es
tabl
ishe
d an
d fu
nctio
nal F
inan
cial
Ove
rsig
ht S
truct
ures
. 39
39
39
0
No
devi
atio
n
SUB
-PR
OG
RA
MM
E 2.
3- P
UB
LIC
PA
RTI
CIP
ATI
ON
Pe
rform
ance
Indi
cato
r/Mea
sure
Ac
tual
ac
hiev
emen
t 20
16/1
7
Plan
ned
Targ
et
2017
/18
Actu
al
Achi
evem
ent
2017
/18
Dev
iatio
n fro
m p
lann
ed
targ
et to
act
ual
achi
evem
ent 2
017/
18
Com
men
ts o
n de
viat
ions
Stra
tegi
c O
bjec
tive:
2 -
To im
prov
e ef
fect
ive
man
agem
ent s
uppo
rt o
n m
unic
ipal
adm
inis
trat
ion
mat
ters
with
in th
e re
gula
tory
fram
ewor
k.
Stra
tegi
c O
bjec
tive:
4 -
To im
prov
e pu
blic
trus
t and
cre
dibi
lity
in lo
cal g
over
nmen
t thr
ough
pub
lic p
artic
ipat
ion.
Num
ber o
f mun
icip
aliti
es s
uppo
rted
with
com
mun
ity
parti
cipa
tion
and
citiz
en e
mpo
wer
men
t par
tner
ship
s 33
30
30
0
No
devi
atio
n
Num
ber o
f mun
icip
aliti
es s
uppo
rted
to h
ave
func
tiona
l pu
blic
par
ticip
atio
n un
its
33
25
30
+5
The
depa
rtmen
t was
ext
endi
ng s
uppo
rt to
the
func
tiona
lity
of O
pera
tion
Mas
ipha
tisan
e (w
ar
room
s) in
all
loca
l mun
icip
aliti
es d
ue to
the
deci
sion
take
n du
ring
the
repo
rting
per
iod.
N
umbe
r of m
unic
ipal
ities
sup
porte
d to
hav
e fu
nctio
nal
war
d co
mm
ittee
s
33
25
30
+5
The
depa
rtmen
t was
ext
endi
ng s
uppo
rt to
the
func
tiona
lity
of O
pera
tion
Mas
ipha
tisan
e (w
ar
room
s) in
all
loca
l mun
icip
aliti
es d
ue to
the
deci
sion
take
n du
ring
the
repo
rting
per
iod.
N
umbe
r of C
DW
P ca
ses
reso
lved
60
0 50
7 50
7 0
No
devi
atio
n
% o
f ele
ctio
ns a
nd b
i-ele
ctio
ns s
uppo
rted
10
0%
100%
10
0%
0 N
o de
viat
ion
% o
f mun
icip
aliti
es s
uppo
rted
to re
spon
d pr
ompt
ly to
al
l ser
vice
del
iver
y co
mpl
aint
s.
100%
10
0%
100%
0
No
devi
atio
n
40
SU
B-P
RO
GR
AM
ME
2.4-
CA
PAC
ITY
BU
ILD
ING
Pe
rform
ance
Indi
cato
r/Mea
sure
Ac
tual
ac
hiev
emen
t 20
16/1
7
Plan
ned
Targ
et
2017
/18
Actu
al
Achi
evem
ent
2017
/18
Devi
atio
n fro
m p
lann
ed
targ
et to
act
ual
achi
evem
ent 2
017/
18
Com
men
ts o
n de
viat
ions
Stra
tegi
c O
bjec
tive:
5 -
To fa
cilit
ate
impr
oved
func
tiona
lity
of 3
9 m
unic
ipal
inst
itutio
ns th
roug
h th
e co
mpl
ete
impl
emen
tatio
n of
indi
vidu
al p
erfo
rman
ce m
anag
emen
t and
dev
elop
men
t sy
stem
s al
igne
d to
the
orga
nisa
tiona
l per
form
ance
man
agem
ent s
yste
ms.
%
of m
unic
ipal
ities
mon
itore
d to
com
ply
with
MSA
regu
latio
ns o
n ap
poin
tmen
ts
of M
unic
ipal
Man
ager
s an
d Se
nior
Man
ager
s 45
10
0%
100%
0
No
devi
atio
n
Num
ber o
f mun
icip
aliti
es m
onito
red
in th
e su
bmis
sion
of
Wor
kpla
ce S
kills
Pla
n (W
SP) t
o LG
SETA
45
39
39
0
No
devi
atio
n
Num
ber o
f mun
icip
aliti
es s
uppo
rted
in r
evie
win
g in
tegr
ated
HR
Pla
ns
6 6
5 +1
In
the
case
of N
dlam
be L
M,
cont
act w
as m
ade
with
the
mun
icip
al o
ffici
als
and
no
resp
onse
was
rece
ived
fro
m th
e m
unic
ipal
ity.
Num
ber o
f mun
icip
aliti
es m
onito
red
in th
e su
bmis
sion
of E
mpl
oym
ent E
quity
R
epor
ts to
Dep
artm
ent o
f Lab
our a
nnua
lly
45
39
39
0 N
o de
viat
ion
Num
ber o
f mun
icip
aliti
es s
uppo
rted
in a
ligni
ng th
eir r
evie
wed
org
anog
ram
s w
ith
IDP’
s 6
6 8
+2
Enoc
h M
gijim
a L
M w
as
prio
ritis
ed a
nd a
requ
est
was
rece
ived
from
the
Nta
bank
ulu
LM.
% o
f mun
icip
aliti
es s
uppo
rted
in re
solv
ing
labo
ur re
latio
ns m
atte
rs th
roug
h se
ctio
n 10
6 in
vest
igat
ions
N
ew
100%
10
0%
0 N
o de
viat
ion
41
SU
B-P
RO
GR
AM
ME
2.5-
MU
NIC
IPA
L PE
RFO
RM
AN
CE
MO
NIT
OR
ING
, REP
OR
TIN
G A
ND
EVA
LUA
TIO
N
Perfo
rman
ce In
dica
tor/M
easu
re
Actu
al a
chie
vem
ent
2016
/17
Plan
ned
Targ
et
2017
/18
Actu
al
Achi
evem
ent
2017
/18
Devi
atio
n fro
m p
lann
ed
targ
et to
act
ual
achi
evem
ent 2
017/
18
Com
men
ts o
n de
viat
ions
Stra
tegi
c O
bjec
tive:
5 -
To fa
cilit
ate
impr
oved
func
tiona
lity
of 3
9 m
unic
ipal
inst
itutio
ns th
roug
h th
e co
mpl
ete
impl
emen
tatio
n of
indi
vidu
al p
erfo
rman
ce m
anag
emen
t and
dev
elop
men
t sy
stem
s al
igne
d to
the
orga
nisa
tiona
l per
form
ance
man
agem
ent s
yste
ms.
St
rate
gic
Obj
ectiv
e: 6
- To
impr
ove
mun
icip
al c
apac
ity a
sses
smen
t, ca
paci
ty b
uild
ing
and
ICT
thro
ugh
the
prov
isio
ning
of e
ffect
ive
high
qua
lity
man
agem
ent s
uppo
rt.
Stra
tegi
c O
bjec
tive:
7 -
To im
prov
e m
unic
ipal
per
form
ance
, mon
itorin
g an
d ev
alua
tion
serv
ices
thro
ugh
effe
ctiv
e an
d co
ordi
nate
d ha
nds-
on s
uppo
rt.
Num
ber o
f mun
icip
aliti
es s
uppo
rted
to in
stitu
tiona
lise
Perfo
rman
ce
Man
agem
ent S
yste
m (P
MS)
22
39
38
-1
M
hlon
tlo m
unic
ipal
ity re
ques
ted
a po
stpo
nem
ent o
f the
eng
agem
ent i
n an
offi
cial
lette
r.
Num
ber o
f Mun
icip
al P
erfo
rman
ce R
epor
ts c
ompi
led
as p
er th
e re
quire
men
ts o
f s47
of t
he M
SA
1 1
1 0
No
devi
atio
n
% o
f mun
icip
aliti
es s
uppo
rted
to s
ubm
it si
gned
Per
form
ance
Ag
reem
ents
for e
mpl
oyed
Sec
tion
54A
and
56 m
anag
ers
71%
10
0%
77%
-2
3%
Mun
icip
aliti
es fa
iled
to s
ubm
it pe
rform
ance
agr
eem
ents
to th
e de
partm
ent a
nd th
e m
ain
reas
on
bein
g th
e em
ploy
men
t con
tract
s of
S5
4A a
nd S
56 c
ontra
cts
that
exp
ired.
N
umbe
r of m
onito
ring
repo
rts c
ompi
led
on th
e im
plem
enta
tion
of 3
pi
llars
(Sou
nd F
inan
cial
man
agem
ent,
Goo
d G
over
nanc
e an
d Bu
ildin
g C
apac
ity) o
f Bac
k to
Bas
ics
(B2B
) Pro
gram
me
4 4
4 0
No
devi
atio
n
Num
ber o
f eva
luat
ion
repo
rts c
ompi
led
1 1
1 0
No
devi
atio
n
Num
ber o
f MU
CAT
cha
pter
s re
vise
d N
ew
13
13
0 N
o de
viat
ion
Num
ber o
f con
solid
ated
mon
itorin
g re
ports
on
supp
ort p
rogr
amm
es
com
pile
d 4
4 4
0 N
o de
viat
ion
42
43
PROGRAMME 3: DEVELOPMENT AND PLANNING
2.5.3.1 Strategic Goals
Strategic Goal 3 Effective and efficient planning and development in municipalities
Strategic Goal 4 Liveable, integrated cities, towns and rural areas that provide basic income security
Strategic Goal 5 To have enabling, viable, sustainable developmental municipalities that deliver basic services
2.5.3.2 Strategic Objectives 8-10
To support 39 municipalities to achieve their statutory, social, economic and environmental obligations in respect of integrated developmental planning, spatial planning, land survey and cadastral information management, valuation services and land use management and administration
To promote economic prosperity, liveable integrated cities, towns and rural areas as well as basic income security for citizens of the Eastern Cape Province
To support 39 municipalities to meet their targets for basic needs services in line with their credible IDP’s
2.5.3.3 Programme Purpose
To render support services regarding integrated planning and development in municipalities
2.5.3.4 Sub-Programmes
Sub-Programmes Sub-Programme Purpose 3.1: Spatial Planning To support municipalities with spatial planning. 3.2: Land Use Management To support municipalities with effective and efficient land use
management and administration 3.3: Local Economic Development To provide seamless and integrated local economic development
facilitation. 3.4: Municipal Infrastructure To build efficient social infrastructure to support service delivery. 3.5: Disaster Management To improve disaster prevention, mitigation and responses. 3.6: IDP Coordination To provide support for effective and efficient municipal integrated
development planning.
44
2.
5.3.
5 Li
nkin
g Pe
rfor
man
ce w
ith B
udge
t Allo
catio
n
PRO
GRA
MM
E 3:
DEV
ELO
PMEN
T AN
D PL
ANN
ING
Su
b-Pr
ogra
mm
e Na
me
2017
/ 20
18
2016
/ 20
17
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
(O
ver)
Un
der
Expe
nditu
re
% S
pent
Fi
nal A
ppro
pria
tion
Act
ual
Expe
nditu
re
(Ove
r)
Und
er
Expe
nditu
re
% S
pent
R’00
0 R’
000
R’00
0
R’00
0 R
’000
R
’000
Spat
ial P
lann
ing
14 5
57
14 0
56
501
96,6
%
18 0
03
12 7
87
5 21
7 71
,0%
La
nd U
se M
anag
emen
t 20
863
20
728
13
5 99
,4%
25
065
20
351
4
714
81,2
%
IDP
Coo
rdin
atio
n 7
031
6 98
5 46
99
,3%
7
690
7 01
5 67
5 91
,2%
LE
D
23 4
77
23 2
27
250
98,9
%
23 1
48
21 6
52
1 49
6 93
,5%
M
unic
ipal
Infra
stru
ctur
e 11
3 89
9 11
3 37
2 52
7 99
,5%
53
703
51
274
2
429
95,5
%
Dis
aste
r Man
agem
ent
17 5
18
14 4
94
3 02
4 82
,7%
20
108
13
673
6
435
68,0
%
Tota
l 19
7 34
5 19
2 86
3 4
483
97,7
%
147
717
126
752
20 9
65
85,8
%
PRO
GR
AM
ME
3: D
EVEL
OPM
ENT
AN
D P
LAN
NIN
G
SUB
-PR
OG
RA
MM
E 3.
1- S
PATI
AL
PLA
NN
ING
Perfo
rman
ce In
dica
tor/M
easu
re
Actu
al a
chie
vem
ent
2016
/17
Plan
ned
Targ
et
2017
/18
Actu
al
Achi
evem
ent
2017
/18
Devi
atio
n fro
m p
lann
ed
targ
et to
act
ual
achi
evem
ent 2
017/
18
Com
men
ts o
n de
viat
ions
Stra
tegi
c O
bjec
tive:
8 -
To s
uppo
rt 3
9 m
unic
ipal
ities
to a
chie
ve th
eir s
tatu
tory
, soc
ial,
econ
omic
and
env
ironm
enta
l obl
igat
ions
in re
spec
t of i
nteg
rate
d de
velo
pmen
t pla
nnin
g, s
patia
l pl
anni
ng, l
and
surv
ey a
nd c
adas
tral
info
rmat
ion
man
agem
ent,
valu
atio
n se
rvic
es a
nd la
nd u
se m
anag
emen
t and
adm
inis
trat
ion.
N
umbe
r of d
istri
ct m
unic
ipal
ities
tech
nica
lly
supp
orte
d w
ith th
e im
plem
enta
tion
of S
PLU
MA
6 6
6 0
No
devi
atio
n
% p
rogr
ess
of c
ompl
etio
n of
Whi
te P
aper
(P
rovi
ncia
l SPL
UM
A Le
gisl
atio
n) a
nd D
raft
Bill
0%
35%
9%
-2
6%
Del
ays
wer
e ex
perie
nced
due
to fo
rmal
co
nfirm
atio
n of
the
dele
gatio
n by
the
Prem
ier
of th
e EC
Pro
vinc
e to
MEC
- C
ogta
. Fur
ther
th
an th
at, t
he c
ompl
etio
n of
the
PSD
F w
as a
pr
ovin
cial
prio
rity.
%
of l
and
deve
lopm
ent a
pplic
atio
ns p
roce
ssed
in
term
s of
the
Land
Use
Man
agem
ent
Sche
mes
(LU
MS)
100%
10
0%
100%
0
No
devi
atio
n
% p
rogr
ess
tow
ards
a R
evie
wed
Pro
vinc
ial
Spat
ial D
evel
opm
ent P
lan
100%
60
%
60%
0
No
devi
atio
n
Num
ber o
f dis
trict
mun
icip
aliti
es s
uppo
rted
with
th
e im
plem
enta
tion
of G
IS
6 6
6 0
No
devi
atio
n
45
SU
B-P
RO
GR
AM
ME
3.2
- LAN
D U
SE M
AN
AG
EMEN
T Pe
rform
ance
Indi
cato
r/Mea
sure
Ac
tual
ac
hiev
emen
t 20
16/1
7
Plan
ned
Targ
et
2017
/18
Actu
al
Achi
evem
ent
2017
/18
Devi
atio
n fro
m p
lann
ed
targ
et to
act
ual
achi
evem
ent 2
017/
18
Com
men
ts o
n de
viat
ions
Stra
tegi
c O
bjec
tive:
8 -
To s
uppo
rt 3
9 m
unic
ipal
ities
to a
chie
ve th
eir s
tatu
tory
, soc
ial,
econ
omic
and
env
ironm
enta
l obl
igat
ions
in re
spec
t of i
nteg
rate
d de
velo
pmen
t pla
nnin
g, s
patia
l pl
anni
ng, l
and
surv
ey a
nd c
adas
tral
info
rmat
ion
man
agem
ent,
valu
atio
n se
rvic
es a
nd la
nd u
se m
anag
emen
t and
adm
inis
trat
ion.
N
umbe
r of m
unic
ipal
ities
that
are
mon
itore
d to
com
ply
with
MPR
A 9
6 6
0 N
o de
viat
ion
Num
ber o
f dis
trict
mun
icip
aliti
es a
dmin
istra
tivel
y su
ppor
ted
with
the
Impl
emen
tatio
n of
SPL
UM
A N
ew
6 6
0 N
o de
viat
ion
Num
ber o
f dis
trict
mun
icip
aliti
es s
uppo
rted
in a
ctio
ns s
uppo
rtive
of
hum
an s
ettle
men
t out
com
es re
gard
ing
title
dee
ds to
hou
seho
lds
New
6
6 0
No
devi
atio
n
Num
ber o
f dis
trict
mun
icip
aliti
es s
uppo
rted
to c
ondu
ct c
adas
tral s
urve
ys
for a
cces
s to
land
righ
ts.
2 2
2 0
No
devi
atio
n
% o
f lan
d de
velo
pmen
t app
licat
ions
sub
mitt
ed fo
r app
rova
l by
Com
pete
nt A
utho
ritie
s.
100%
10
0%
100%
0
No
devi
atio
n
SUB
-PR
OG
RA
MM
E 3.
3 - L
OC
AL
ECO
NO
MIC
DEV
ELO
PMEN
T Pe
rform
ance
Indi
cato
r/Mea
sure
Ac
tual
ac
hiev
emen
t 20
16/1
7
Plan
ned
Targ
et
2017
/18
Actu
al
Achi
evem
ent
2017
/18
Devi
atio
n fro
m p
lann
ed
targ
et to
act
ual
achi
evem
ent 2
017/
18
Com
men
ts o
n de
viat
ions
Stra
tegi
c O
bjec
tive:
9 -
To p
rom
ote
econ
omic
pro
sper
ity, l
ivea
ble
inte
grat
ed c
ities
, tow
ns a
nd ru
ral a
reas
as
wel
l as
basi
c in
com
e se
curit
y fo
r citi
zens
of t
he E
aste
rn C
ape
Prov
ince
. N
umbe
r of w
ork
oppo
rtuni
ties
crea
ted
thro
ugh
the
CW
P 43
636
42
000
43
184
+1
184
Th
e ov
er re
crui
tmen
t is
with
in
the
10%
thre
shol
d as
per
the
CW
P SO
P to
com
pens
ate
for
abse
ntee
ism
in o
rder
to fu
lly
utilis
e th
e al
loca
ted
budg
et.
Num
ber o
f mun
icip
aliti
es s
uppo
rted
to s
uppl
emen
t Loc
al E
cono
mic
D
evel
opm
ent i
n lin
e w
ith m
unic
ipal
LED
Stra
tegi
es
8 7
7 0
No
devi
atio
n
Num
ber o
f LED
stru
ctur
es s
uppo
rted
in m
unic
ipal
ities
to p
rom
ote
stra
tegi
c an
d re
gion
al c
olla
bora
tion
9 8
8 0
No
devi
atio
n
Num
ber o
f mun
icip
aliti
es s
uppo
rted
to im
plem
ent L
ED c
apac
ity
6 6
6 0
No
devi
atio
n N
umbe
r of t
owns
sup
porte
d to
pro
mot
e th
e Sm
all T
own
Dev
elop
men
t Pr
ogra
mm
e
7 7
7 0
No
devi
atio
n
Num
ber o
f urb
an n
odes
sup
porte
d to
pro
mot
e in
tegr
ated
urb
an
deve
lopm
ent p
rogr
amm
e (IU
DP)
7
7 7
0 N
o de
viat
ion
Num
ber o
f EPW
P w
ork
oppo
rtuni
ties
crea
ted
thro
ugh
CW
P 20
4 21
0 21
0 0
No
devi
atio
n
46
SU
B-P
RO
GR
AM
ME
3.4-
MU
NIC
IPA
L IN
FRA
STR
UC
TUR
E Pe
rform
ance
Indi
cato
r/Mea
sure
Ac
tual
ach
ieve
men
t 20
16/1
7 Pl
anne
d Ta
rget
20
17/1
8 Ac
tual
Ac
hiev
emen
t 20
17/1
8
Devi
atio
n fro
m p
lann
ed
targ
et to
act
ual
achi
evem
ent 2
017/
18
Com
men
ts o
n de
viat
ions
Stra
tegi
c ob
ject
ive:
10
– To
sup
port
39
mun
icip
aliti
es to
mee
t the
ir ta
rget
s fo
r bas
ic n
eeds
ser
vice
s in
line
with
thei
r cre
dibl
e ID
P’s.
N
umbe
r of f
unct
iona
l coo
rdin
atin
g st
ruct
ures
for i
nfra
stru
ctur
e de
velo
pmen
t and
ser
vice
del
iver
y 28
24
24
0
No
devi
atio
n
Num
ber o
f mun
icip
aliti
es a
sses
sed
agai
nst s
ervi
ce d
eliv
ery
benc
h m
arks
45
39
39
0
No
devi
atio
n
Num
ber o
f mun
icip
aliti
es s
uppo
rted
with
the
impl
emen
tatio
n of
B2B
Se
rvic
e D
eliv
ery
Proj
ects
16
16
16
0
No
devi
atio
n
Num
ber o
f mun
icip
aliti
es s
uppo
rted
with
Pro
vinc
ial I
nter
vent
ion
Proj
ects
3
8 8
0 N
o de
viat
ion
Num
ber o
f mun
icip
aliti
es s
uppo
rted
with
the
inte
rnal
isat
ion
of
Inst
itutio
nal a
nd S
ocia
l dev
elop
men
t (IS
D)
New
16
16
0
No
devi
atio
n
Num
ber o
f mun
icip
aliti
es s
uppo
rted
to im
plem
ent i
ndig
ent p
olic
ies
42
36
36
0 N
o de
viat
ion
Num
ber o
f mun
icip
aliti
es s
uppo
rted
on h
ouse
hold
s to
acc
ess
free
basi
c se
rvic
es (i
.e. W
ater
, San
itatio
n, E
lect
ricity
, Ref
use
Rem
oval
) 42
36
36
0
No
devi
atio
n
PRO
GR
AM
ME
3.5-
DIS
AST
ER M
AN
AG
EMEN
T
Perfo
rman
ce In
dica
tor/M
easu
re
Actu
al
achi
evem
ent
2016
/17
Plan
ned
Targ
et
2017
/18
Actu
al
Achi
evem
ent
2017
/18
Devi
atio
n fro
m
plan
ned
tar
get t
o ac
tual
ach
ieve
men
t 20
17/1
8
Com
men
ts o
n de
viat
ions
Stra
tegi
c ob
ject
ive:
10
- To
supp
ort 3
9 m
unic
ipal
ities
to m
eet t
heir
targ
ets
for b
asic
nee
ds s
ervi
ces
in li
ne w
ith th
eir c
redi
ble
IDP’
s N
umbe
r of f
unct
iona
l Mun
icip
al D
isas
ter M
anag
emen
t C
entre
s
7 21
8
-13
The
Dis
aste
r Man
agem
ent A
ct m
anda
tes
the
PDM
C to
su
ppor
t the
Dis
trict
Mun
icip
aliti
es a
nd M
etro
s in
term
s of
func
tiona
lity
of th
e di
sast
er m
anag
emen
t cen
tres.
N
umbe
r of F
unct
iona
l Fire
Brig
ade
Serv
ices
21
21
20
-1
D
ue to
oth
er c
omm
itmen
ts b
y ex
tern
al s
take
hold
ers
the
sche
dule
d w
orks
hop
coul
d no
t occ
ur.
Num
ber o
f rep
orts
pro
duce
d in
the
reso
urci
ng o
f the
pr
ovin
cial
dis
aste
r man
agem
ent c
entre
N
ew
4 4
0 N
o de
viat
ion
Num
ber o
f rep
orts
pro
duce
d in
mon
itorin
g in
the
inst
alla
tion
and
func
tiona
lity
of D
isas
ter M
anag
emen
t IC
T
9 4
1 -3
Th
e fo
urth
qua
rter r
epor
t was
not
fina
lised
on
time
for
the
repo
rting
per
iod.
The
repo
rt w
as p
repa
red,
ho
wev
er, i
t had
not
gon
e th
roug
h th
e co
rrect
leve
ls o
f re
view
.
47
SU
B-P
RO
GR
AM
ME
3.6-
IDP
CO
OR
DIN
ATI
ON
Pe
rform
ance
Indi
cato
r/Mea
sure
Ac
tual
ac
hiev
emen
t 20
16/1
7
Plan
ned
Targ
et
2017
/18
Actu
al A
chie
vem
ent
2017
/18
Devi
atio
n fro
m p
lann
ed
targ
et to
act
ual
achi
evem
ent 2
017/
18
Com
men
ts o
n de
viat
ions
Stra
tegi
c O
bjec
tive:
8 –
To
supp
ort 3
9 m
unic
ipal
ities
to a
chie
ve th
eir s
tatu
tory
, soc
ial,
econ
omic
and
env
ironm
ent o
blig
atio
ns in
resp
ect o
f int
egra
ted
deve
lopm
ent p
lann
ing,
spa
tial
plan
ning
, lan
d su
rvey
and
cad
astr
al in
form
atio
n m
anag
emen
t, ev
alua
tion
serv
ices
and
land
use
man
agem
ent a
nd a
dmin
istr
atio
n.
Num
ber o
f mun
icip
aliti
es s
uppo
rted
with
the
deve
lopm
ent o
f leg
ally
com
plia
nt
IDPs
45
39
39
0
No
devi
atio
n
48
49
PROGRAMME 4: TRADITIONAL INSTITUTIONAL MANAGEMENT
2.5.4.1 Strategic Goal 6
An enabling service environment in traditional leadership institutions to improve socio-economic development through integrated support services
2.5.4.2 Strategic Objectives
To create a conducive service and administrative environment for the implementation of the developmental objectives to improve the functionality of the traditional leadership institutions and socio-economic growth
To promote traditional, cultural and customary programmes To resolve traditional leadership disputes and claims for improved social cohesion within the communities.
2.5.4.3 Programme Purpose
To support and capacitate institutions of traditional leadership to effectively perform their statutory and customary obligations
2.5.4.4 Sub-Programmes
Sub-Programmes Sub-Programme Purpose
4.1: Traditional Resource Administration To conduct Traditional Leadership research and policy development, and provide administrative and infrastructural support, capacity building and financial management support to Traditional Leadership Institutions
4.2:Traditional Resource Administration To provide administrative and infrastructural support to traditional leadership institutions
4.3: Rural Development Facilitation To facilitate traditional community development initiatives.
50
2.
5.4.
5 Li
nkin
g Pe
rfor
man
ce w
ith B
udge
t Allo
catio
n
PRO
GRA
MM
E 4:
TR
ADIT
IONA
L IN
STIT
UTI
ONA
L M
ANA
GEM
ENT
Sub-
Prog
ram
me
Nam
e
2017
/ 20
18
2016
/ 20
17
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
(O
ver)
Un
der E
xpen
ditu
re
% S
pent
Fi
nal
Appr
opria
tion
Act
ual
Expe
nditu
re
(Ove
r)
Und
er
Expe
nditu
re
% S
pent
R’00
0 R’
000
R’00
0
R’00
0 R
’000
R
’000
Trad
ition
al R
esou
rce
Adm
inis
tratio
n 30
1 93
4 29
8 26
2 3
672
98,8
%
276
426
273
985
2 44
1 99
,1%
R
ural
Dev
elop
men
t Fac
ilitat
ion
10 3
63
10 0
41
322
96,9
%
9 05
1 8
977
74
99,2
%
Trad
ition
al In
stitu
tiona
l Adm
inis
tratio
n 14
429
13
969
46
0 96
,8%
20
070
16
288
3
782
81,2
%
Tota
l 32
6 72
6 32
2 27
2 4
454
98,6
%
305
547
299
250
6 29
7 97
,9%
PR
OG
RA
MM
E 4:
TR
AD
ITIO
NA
L A
FFA
IRS
SUB
-PR
OG
RA
MM
E 4.
1 -T
RA
DIT
ION
AL
INST
ITU
TIO
NA
L A
DM
INIS
TRA
TIO
N
Perfo
rman
ce In
dica
tor/M
easu
re
Actu
al a
chie
vem
ent
2016
/17
Plan
ned
Targ
et
2017
/18
Actu
al
Achi
evem
ent
2017
/18
Devi
atio
n fro
m p
lann
ed
targ
et to
act
ual
achi
evem
ent 2
017/
18
Com
men
ts o
n de
viat
ions
Stra
tegi
c O
bjec
tive:
11
- To
crea
te a
con
duci
ve s
ervi
ce a
nd a
dmin
istr
ativ
e en
viro
nmen
t for
the
impl
emen
tatio
n of
the
deve
lopm
enta
l obj
ectiv
es to
impr
ove
the
func
tiona
lity
of th
e tr
aditi
onal
lead
ersh
ip in
stitu
tions
and
soc
io-e
cono
mic
gro
wth
. St
rate
gic
Obj
ectiv
e: 1
2 - T
o pr
omot
e tr
aditi
onal
, cul
tura
l and
cus
tom
ary
prog
ram
mes
. St
rate
gic
Obj
ectiv
e: 1
3 - T
o re
solv
e tr
aditi
onal
lead
ersh
ip d
ispu
tes
and
clai
ms
for i
mpr
oved
soc
ial c
ohes
ion
with
in th
e co
mm
uniti
es.
Num
ber o
f Tra
ditio
nal L
eade
rshi
p di
sput
es a
nd c
laim
s re
ports
sen
t to
the
MEC
N
ew
4 3
-1
The
term
of t
he C
omm
issi
on e
xpire
d th
at
resu
lted
in n
o pe
rform
ance
dur
ing
the
four
th
quar
ter.
Num
ber o
f cap
acity
bui
ldin
g in
terv
entio
ns a
dmin
ister
ed
for T
radi
tiona
l Lea
ders
4
4 4
0 N
o de
viat
ion
Num
ber o
f vot
er e
duca
tion
sess
ions
con
duct
ed fo
r el
ectio
n fo
r Tra
ditio
nal L
eade
rshi
p 1
3 2
-1
The
vote
r edu
catio
n se
ssio
ns w
ere
com
plet
ed d
urin
g th
e se
cond
qua
rter s
ince
th
e el
ectio
ns w
ere
held
in th
e se
cond
qua
rter.
Num
ber o
f pol
icie
s im
pact
ing
on T
radi
tiona
l Le
ader
ship
Inst
itutio
ns d
evel
oped
1
0 0
0 N
o ta
rget
was
set
for d
evel
opm
ent o
f pol
icie
s fo
r the
cur
rent
yea
r. N
umbe
r of p
olic
ies
impa
ctin
g on
Tra
ditio
nal
Lead
ersh
ip In
stitu
tions
revi
ewed
N
ew
3 3
0 N
o de
viat
ion
Num
ber o
f pie
ces
of le
gisl
atio
n am
ende
d fo
r im
prov
ed
gove
rnan
ce
0 -
- -
Num
ber o
f res
earc
h re
ports
on
herit
age
of T
radi
tiona
l Le
ader
ship
Inst
itutio
ns c
ondu
cted
0
- -
-
51
Pe
rform
ance
Indi
cato
r/Mea
sure
Ac
tual
ach
ieve
men
t 20
16/1
7 Pl
anne
d Ta
rget
20
17/1
8 Ac
tual
Ac
hiev
emen
t 20
17/1
8
Devi
atio
n fro
m p
lann
ed
targ
et to
act
ual
achi
evem
ent 2
017/
18
Com
men
ts o
n de
viat
ions
Stra
tegi
c O
bjec
tive:
11
- To
crea
te a
con
duci
ve s
ervi
ce a
nd a
dmin
istr
ativ
e en
viro
nmen
t for
the
impl
emen
tatio
n of
the
deve
lopm
enta
l obj
ectiv
es to
impr
ove
the
func
tiona
lity
of th
e tr
aditi
onal
lead
ersh
ip in
stitu
tions
and
soc
io-e
cono
mic
gro
wth
. St
rate
gic
Obj
ectiv
e: 1
2 - T
o pr
omot
e tr
aditi
onal
, cul
tura
l and
cus
tom
ary
prog
ram
mes
. St
rate
gic
Obj
ectiv
e: 1
3 - T
o re
solv
e tr
aditi
onal
lead
ersh
ip d
ispu
tes
and
clai
ms
for i
mpr
oved
soc
ial c
ohes
ion
with
in th
e co
mm
uniti
es.
Num
ber o
f res
earc
h re
ports
on
gene
alog
ies
of ro
yal
fam
ilies
cond
ucte
d
10
10
10
0 N
o de
viat
ion
Num
ber o
f con
solid
ated
fina
ncia
l ove
rsig
ht re
ports
on
Trad
ition
al C
ounc
ils
4 4
4 0
No
devi
atio
n
SUB
- PR
OG
RA
MM
E 4.
2 –
TRA
DIT
ION
AL
RES
OU
RC
E A
DM
INIS
TRA
TIO
N
Perfo
rman
ce In
dica
tor/M
easu
re
Actu
al
achi
evem
ent
2016
/17
Plan
ned
Targ
et
2017
/18
Actu
al
Achi
evem
ent
2017
/18
Dev
iatio
n fro
m p
lann
ed
targ
et to
act
ual
achi
evem
ent 2
017/
18
Com
men
ts o
n de
viat
ions
Stra
tegi
c O
bjec
tive:
11
- To
crea
te a
con
duci
ve s
ervi
ce a
nd a
dmin
istr
ativ
e en
viro
nmen
t for
the
impl
emen
tatio
n of
the
deve
lopm
enta
l obj
ectiv
es to
impr
ove
the
func
tiona
lity
of th
e tr
aditi
onal
lead
ersh
ip in
stitu
tions
and
soc
io-e
cono
mic
gro
wth
. St
rate
gic
Obj
ectiv
e: 1
2 - T
o pr
omot
e tr
aditi
onal
, cul
tura
l and
cus
tom
ary
prog
ram
mes
. St
rate
gic
Obj
ectiv
e: 1
3 - T
o re
solv
e tr
aditi
onal
lead
ersh
ip d
ispu
tes
and
clai
ms
for i
mpr
oved
soc
ial c
ohes
ion
with
in th
e co
mm
uniti
es.
Num
ber o
f rep
orts
on
Trad
ition
al L
eade
rshi
p In
stitu
tions
sup
porte
d w
ith
reso
urce
s 4
4 4
0 N
o de
viat
ion
Num
ber o
f rep
orts
on
Trad
ition
al L
eade
rshi
p In
stitu
tions
con
stru
cted
4
4 4
0 N
o de
viat
ion
Num
ber o
f rep
orts
on
Trad
ition
al L
eade
rshi
p In
stitu
tions
reno
vate
d N
ew
4 4
0 N
o de
viat
ion
% o
f ap
peal
s re
ferre
d to
MEC
in te
rms
of S
ectio
n 21
of T
radi
tiona
l Lea
ders
hip
and
Gov
erna
nce
Act,
2003
(Ac
t 41
of 2
003)
as
amen
ded
100%
10
0%
100%
0
No
devi
atio
n
% o
f con
flict
reso
lutio
n se
ssio
ns c
ondu
cted
in T
radi
tiona
l Lea
ders
hip
Inst
itutio
ns
New
10
0%
100%
0
No
devi
atio
n SU
B -
PRO
GR
AM
ME
4.3
- RU
RA
L D
EVEL
OPM
ENT
FAC
ILIT
ATI
ON
Perfo
rman
ce In
dica
tor/M
easu
re
Actu
al a
chie
vem
ent
2016
/17
Plan
ned
Targ
et
2017
/18
Actu
al A
chie
vem
ent
2017
/18
Devi
atio
n fro
m p
lann
ed
targ
et
to a
ctua
l ach
ieve
men
t 201
7/18
C
omm
ents
on
devi
atio
ns
Stra
tegi
c O
bjec
tive:
12
- To
prom
ote
trad
ition
al, c
ultu
ral a
nd c
usto
mar
y pr
ogra
mm
es.
Stra
tegi
c O
bjec
tive:
14
- To
exec
ute
effe
ctiv
e ov
ersi
ght f
unct
ion
and
prov
ide
the
requ
ired
stra
tegi
c su
ppor
t to
the
Inst
itutio
ns o
f Tra
ditio
nal L
eade
rshi
p to
fulfi
ll th
e co
nstit
utio
nal
requ
irem
ent o
f rec
ogni
zing
the
role
and
func
tions
of t
he in
stitu
tions
to im
prov
e th
e so
cio-
econ
omic
gro
wth
of r
ural
com
mun
ities
. N
umbe
r of C
WP
com
mitt
ees
mon
itore
d on
par
ticip
atio
n of
Tr
aditi
onal
Lea
ders
23
37
37
0
No
devi
atio
n
Num
ber o
f Tra
ditio
nal C
ounc
ils s
uppo
rted
on fo
rmul
atio
n of
de
velo
pmen
t pla
ns.
8 10
10
0
No
devi
atio
n
Trad
ition
al le
ader
ship
Inst
itutio
ns s
uppo
rted
thro
ugh
partn
ersh
ips.
4
4 4
0 N
o de
viat
ion
52
53
2.5.5 HOUSE OF TRADITIONAL LEADERS
2.5.5.1 Strategic Goal 6
An enabling service environment in traditional leadership institutions to improve socio-economic development through integrated support services
2.5.5.2 Strategic Objectives
To promote traditional, cultural and customary programmes To execute effective oversight function and strategic support to the Institutions of Traditional Leadership
to fulfil the constitutional requirement of recognizing the role and functions of the institutions to improve the socio-economic growth of rural communities
2.5.5.3 Programme Purpose
To promote and improve the effective and efficient functioning of the Eastern Cape House of Traditional Leaders as well as the Local Houses
2.5.5.4 Sub-Programmes
Sub-Programmes Sub-Programme Purpose 5.1: Administration of House of Traditional Leaders
To provide overall administration and support services to the provincial house of traditional leaders; and to play an oversight role to provincial and local spheres of government on matters of service delivery; proposed legislation affecting traditional communities; management of communal land; conflict resolution and socio-economic development within traditional communities
5.2: Committees and Local Houses of Traditional Leaders
To play the oversight role and advice the provincial and local spheres of government on matters of service delivery, proposed legislation affecting traditional communities, management and socio-economic development within traditional communities
54
2.
5.5.
5 Li
nkin
g Pe
rfor
man
ce w
ith B
udge
t Allo
catio
n
PRO
GRA
MM
E 5:
HO
USE
OF
TRAD
ITIO
NAL
LEAD
ERS
Sub-
Prog
ram
me
Nam
e
2017
/ 20
18
2016
/ 20
17
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
(O
ver)
Un
der
Expe
nditu
re
% S
pent
Fi
nal
Appr
opria
tion
Act
ual
Expe
nditu
re
(Ove
r)
Und
er
Expe
nditu
re
% S
pent
R’00
0 R’
000
R’00
0
R’00
0 R
’000
R
’000
Adm
in H
ouse
of T
radi
tiona
l Lea
ders
13
956
13
942
14
99
,9%
17
497
16
851
64
6 96
,3%
C
omm
& L
ocal
Hou
se o
f Tra
d Le
ader
s 16
010
15
985
24
99
,9%
10
114
10
067
49
99
,5%
To
tal
29 9
66
29 9
28
38
99,9
%
27 6
11
26 9
18
694
97,5
%
PRO
GR
AM
ME
5: H
OU
SE O
F TR
AD
ITIO
NA
L LE
AD
ERS
SUB
-PR
OG
RA
MM
E 5
.1- A
DM
INIS
TRA
TIO
N O
F H
OU
SE O
F TR
AD
ITIO
NA
L LE
AD
ERS
Perfo
rman
ce In
dica
tor/M
easu
re
Actu
al a
chie
vem
ent
2016
/17
Plan
ned
Targ
et
2017
/18
Actu
al
Achi
evem
ent
2017
/18
Devi
atio
n fro
m p
lann
ed
targ
et to
act
ual
achi
evem
ent 2
017/
18
Com
men
ts o
n de
viat
ions
Stra
tegi
c O
bjec
tive:
12
- To
prom
ote
trad
ition
al, c
ultu
ral a
nd c
usto
mar
y pr
ogra
mm
es.
Stra
tegi
c O
bjec
tive:
14
- To
exec
ute
effe
ctiv
e ov
ersi
ght f
unct
ion
and
prov
ide
the
requ
ired
stra
tegi
c su
ppor
t to
the
Inst
itutio
ns o
f Tra
ditio
nal L
eade
rshi
p to
fulfi
ll th
e co
nstit
utio
nal
requ
irem
ent o
f rec
ogni
zing
the
role
and
func
tions
of t
he in
stitu
tions
to im
prov
e th
e so
cio-
econ
omic
gro
wth
of r
ural
com
mun
ities
. N
umbe
r of s
igne
d pe
rform
ance
repo
rts s
ubm
itted
tow
ards
in
form
ing
man
agem
ent o
n th
e ex
tent
to w
hich
the
Hou
se o
f Tr
aditi
onal
Lea
ders
is p
erfo
rmin
g
4 4
4 0
No
devi
atio
n
SUB
-PR
OG
RA
MM
E 5
.2- C
OM
MIT
TEES
AN
D L
OC
AL
HO
USE
S TR
AD
ITIO
NA
L LE
AD
ERS
Perfo
rman
ce In
dica
tor/M
easu
re
Actu
al a
chie
vem
ent
2016
/17
Plan
ned
Targ
et
2017
/18
Actu
al
Achi
evem
ent
2017
/18
Devi
atio
n fro
m p
lann
ed
targ
et to
act
ual
achi
evem
ent 2
017/
18
Com
men
ts o
n de
viat
ions
Stra
tegi
c O
bjec
tive:
12
- To
prom
ote
trad
ition
al, c
ultu
ral a
nd c
usto
mar
y pr
ogra
mm
es.
Stra
tegi
c O
bjec
tive:
14
- To
exec
ute
effe
ctiv
e ov
ersi
ght f
unct
ion
and
prov
ide
the
requ
ired
stra
tegi
c su
ppor
t to
the
Inst
itutio
ns o
f Tra
ditio
nal L
eade
rshi
p to
fulfi
ll th
e co
nstit
utio
nal
requ
irem
ent o
f rec
ogni
zing
the
role
and
func
tions
of t
he in
stitu
tions
to im
prov
e th
e so
cio-
econ
omic
gro
wth
of r
ural
com
mun
ities
. R
epor
ts o
n ad
min
istra
tive
supp
ort t
o th
e H
ouse
su
bmitt
ed
New
4
4 0
No
devi
atio
n
Num
ber o
f rep
orts
on
the
faci
litat
ion
of s
take
hold
er
man
agem
ent
New
2
2 0
No
devi
atio
n
55
N
umbe
r of o
vers
ight
repo
rts o
n th
e pa
rtici
patio
n of
Tr
aditi
onal
Lea
ders
in M
unic
ipal
Cou
ncils
N
ew
3 2
-1
Due
to th
e en
d of
term
of m
embe
rs
of th
e H
ouse
of T
radi
tiona
l Lea
ders
du
ring
July
201
7 th
is fu
nctio
n co
uld
not b
e pe
rform
ed d
urin
g th
e se
cond
qu
arte
r.
Num
ber o
f rep
orts
on
the
reso
lutio
ns o
f EXC
O, h
ouse
si
tting
s an
d co
mm
ittee
mee
tings
sub
mitt
ed
4 6
4 -2
D
ue to
the
end
of th
e te
rm o
f the
m
embe
rs o
f the
Hou
se d
urin
g Ju
ly
2017
this
func
tion
coul
d no
t be
perfo
rmed
dur
ing
the
seco
nd
quar
ter a
nd th
e de
viat
ion
of tw
o re
ports
was
as
a re
sult.
Num
ber o
f rep
orts
on
the
clai
ms
and
disp
utes
repo
rts
subm
itted
to E
XCO
10
0%
Dem
and
driv
en
0 0
No
requ
ests
wer
e re
ceiv
ed
Num
ber o
f rep
orts
on
the
impl
emen
tatio
n of
Eas
tern
C
ape
Cus
tom
ary
Mal
e In
itiat
ion
Prac
tice
Legi
slat
ion
4 4
4 0
No
devi
atio
n
Num
ber o
f rep
orts
on
the
prom
otio
n of
trad
ition
al,
cultu
ral,
cust
omar
y an
d co
nstit
uenc
y pr
ogra
mm
es
subm
itted
2 2
2 0
No
devi
atio
n
56
2.6 TRANSFER PAYMENTS
2.6.1 Transfer payments to public entities
The Department transferred an amount of R 160 thousand to South African Revenue Services (SARS) during the year under review. 2.6.2 Transfer payments to all organisations other than public entities An amount of R 178,158 million was transferred to municipalities during the year under review.
2.7 CONDITIONAL GRANTS
2.7.1 Conditional grants and earmarked funds paid
No conditional grants were paid by the Department during the year under review.
2.7.2 Conditional grants and earmarked funds received
A conditional grant of R 2 036 million was received from Provincial Treasury for the year under review. An amount of R 2 035 million was spent at 31 March 2018. The grant was part of the EPWP Integrated Grant Project in an attempt to facilitate Public Employment Programmes.
2.8 DONOR FUNDS
2.8.1 Donor funds received
There were no donor funds received for the year under review and all the Department’s funds are from equitable share or own revenue as disclose in the Annual Financial Statements.
2.9 CAPITAL INVESTMENT
2.9.1 Capital investment, maintenance and asset management plan
An amount of R26,506 million was spent on Capital Assets during the year under review of which R 4,147 million was spent on immovable assets and R 22,358 million on tangible & intangible assets (R 18,850 million on machinery & equipment whilst R 5,438 for Finance Leases) and R 3,509 on Software. The department has constructed three (3) Traditional Councils i.e. Amanguzela in Matatiele, Amabhele in Butterworth and Hala in Elliotdale this financial year. Amabhele in Butterworth has been completed and is in the process of being transferred to the Department of Public Works for inclusion in the Provincial Infrastructure Asset Register. During the year under review the department did not compile an investment infrastructure or infrastructure asset management plan as this is the responsibility of the Department of Public Works.
57
Details as to how asset holding have changed over the period under review including information on disposal, scraping and loss due to theft are as follows:
Description
2017 / 2018 2016 / 2017
Final Appropriation
Actual Expenditure
(Over) Under
Expenditure
Spent Final Appropriation
Actual Expenditure
(Over) Under
Expenditure
Spent
R’000 R’000 R’000 % R’000 R’000 R’000 %
New and Replacement Assets
4 121 3 020 1 101 73,3% 10 351 4 992 5 359 48,2%
Rehabilitation, renovation and refurbishments
1 928 1 127 801 58,5% - - -
Total 6 049 4 147 1 902 68,6% 10 351 4 992 5 359 48,2% SUMMARY 31 MARCH 2018
MOVABLE TANGIBLE AND INTANGIBLE ASSETS
Description Opening Balance
April 2017 Disposals Additions
2017 / 2018 Loss Control
Register Closing Balance
Mar 2018 R’000 R’000 R’000 R’000 R’000
Transport Assets 16 099 9 790 3 364 - 9 673 Computer Equipment 27 073 1 854 7 305 130 36 335 Furniture & Office Equipment 16 031 256 1 987 - 17 762 Other Machinery & Equipment 1 584 23 756 - 2 317 Biological Assets 190 - - - 190 Software 160 - 3 509 - 3 669 Finance Leases - 5 438 - 5 438 Total 61 137 11 923 22 359 103 73 384
The following measures were undertaken by the department to ensure that the Asset Register remains up to date during the period under review;
Additions to assets were reconciled to the BAS and LOGIS system on a monthly basis and that new assets are barcoded as well as recorded in the Asset Register
Physical verification and annual inventory count were periodically done at Head Office, District Offices and Traditional Councils
Where movement of assets were identified, the asset register was updated accordingly.
58
3. GOVERNANCE
3.1 INTRODUCTION The Department is committed to the maintenance of the highest standards of governance to manage public finances and resources in compliance with legislation and relevant prescripts. The Department has sound governance structures in place to effectively, efficiently and economically utilise the state resources to the general benefit of the citizens of this Province. 3.2 RISK MANAGEMENT
The Department in compliance with an approved Risk Management Policy (Enterprise Risk Management Policy) conducts risk and control assessment reviews annually and on-going when there are changes in the processes and/or programmes. The risk and control assessment review sessions give management an opportunity to reflect on the Departmental risks (existing, new and emerging) that have effect of uncertainty on the Objectives and the effectiveness of the internal controls to mitigate the identified risks. Management analyse the existing identified risks, evaluate the effectiveness of the existing mitigation measures and put action plans to strengthen the existing mitigation measures to reduce the residual risk to be at an acceptable level. Management is also given an opportunity to identify emerging / new risks and mitigation measures put in place to mitigate the identified risks. The Risk Management Directorate reports to the Accounting Officer, Risk and Security Management Committee and Audit Committee on a quarterly basis on management of risks by Management as well as on Risk Management processes, in return, both Oversight Committees advise Management on its performance during each quarterly meeting. The risk management maturity level of the department has increased and had a positive influence on the overall performance of the department. 3.3 FRAUD AND CORRUPTION
The Department has an approved Anti-corruption Policy, Whistle Blowing Policy and Fraud Prevention Plan with implementation plans in place to ensure compliance with the prescripts. Awareness and advocacy sessions were conducted as part of implementing the Anti-corruption Policies. Fraud risk assessment as captured within the Fraud Prevention Plan was conducted with role-players and it assisted in developing Departmental Fraud Risk Register with its robust monitoring tool. All reported cases of possible fraud and corruption were recorded in a Case Management System. Disclosures of information received were treated confidentially to protect the Whistle Blowers in terms of the Department’s policy that is consistent with the Protected Disclosures Act as well as the Whistle Blowing Act.
The investigations in municipalities in respect of the complaints received were commissioned by the MEC in terms of Section 106 of the Municipal Systems Act and the internal investigations were commissioned by the Head of Department. The Department provided progress on a quarterly basis of all possible cases of fraud and corruption received to the Office of the Premier through case review meetings. The Department has entered into a Memorandum of Understanding (MoU) with the Special Investigation Unit to deal with backlog cases identified within the Municipalities space. This provided an extra capacity to COGTA officials in tackling the scourge of fraud, corruption and maladministration.
The Department together with National COGTA launched a Local Government Anti-Corruption Strategy, 2016. This included having to address the two important pillars of Minimum Anti-Corruption Capacity, which is prevention and detection by ensuring the issues of integrity and ethics are revisited within the Municipalities. This strategy targets each district with it local municipalities, agencies and entities. This is an ongoing programme that seeks to create
60
synergy between the National, Provincial and Municipalities at large when it comes to the tone on issues of fraud, corruption and maladministration.
The Minimum Information Security Standard document (MISS) prescribe the need for ensuring that information is treated with confidentiality it deserves to safeguard the state. A number of Technical Surveillance Counter Measures were requested through the State Security Agency (SSA) and conducted successfully within the identified areas. Declaration of security during Senior Management meetings was fostered and awareness on issues of vetting as this is but one of the aspect that ensures that cleaner administration begins with individuals that understand ethical conduct.
The directorate played a pivotal role during the recruitment drive of the department, by ensuring that, it employs suitable candidates that does not have criminal records through it pre-screening process done through the service level agreement developed with South African Police Services (SAPS) and State Security Agency respectively. Notwithstanding the support to the Municipalities upon request, during their recruitment especially of the executives through pre-screening processes prior to employment.
The unit secured a number of events, which include the MEC visits to Traditional Institutions, Functions of the Department, invites of the MEC and the issues of Municipal Public Participation and Rapid Response. The protection that is done through a number of stakeholders has shown success as there were no reports of negative incidents and accidents to life.
3.4 MINIMISING CONFLICT OF INTEREST The Policy to prohibit Trade and Employment by employees was communicated to all staff. The Bid Committee members made declarations of interest before the bid sittings commenced. SCM practitioners made declarations of interests as determined by the department.
3.5 CODE OF CONDUCT
The Department has a Code of Conduct Manual. Non-compliance always invites disciplinary action. Disciplinary Procedure in terms of the PSCBC Resolution 1 of 2003 is always invoked when there is
transgression.
The impact and effect of this procedure creates awareness amongst staff members, that when they transgress or found to be in conflict with the expected behavior then they know the consequences. The knowledge of the consequences creates an environment of peace and stability at the workplace.
The department established an Ethics Committee with its own terms of reference that convenes on a quality basis. Ethics risk assessments were conducted and an annual Ethics Management Plan was developed and maintained. A gift register was opened and managed regarding gifts received during the financial year. Applications for remunerative work outside employment was received and facilitated and the financial interest disclosures were managed.
3.6 HEALTH, SAFETY AND ENVIRONMENTAL ISSUES
Integrated Employee Wellness (IEW) comprises of: HIV/AIDS and TB management; Health and productivity management; Wellness management; Safety, Health, Environment and Quality management
All this is intended to build and maintain a healthy workforce for increased productivity and excellent service delivery for the benefit of the Department, employees and their families.
61
Through the IEW programme, employees get to know their health status and disclose freely, subjected to counselling which play a great role in the health of the workforce. 3.7 PORTFOLIO COMMITTEES The Portfolio committee meetings were held on the following dates, activities and venues
Date Purpose topic Venue
Tue, 07 November 2017
Annual and Financial Oversight Reports
Political Overview: MEC Administrative Overview: HOD Presentation of Programme 1
Joe Gqabi Committee Room
Thur, 16 November 2017
Annual and Financial Oversight Reports
Presentation of Program 2 - 5 Joe Gqabi Committee Room
Tue, 21 November 2017
Annual and Financial Oversight Reports
Consideration of the Financial Oversight Report
Joe Gqabi Committee Room
The Portfolio Committee issues raised are reported by subject, details and the responses by the Department
RESPONSES TO THE HOUSE RESOLUTIONS ON ANNUAL REPORT
PROGRAMME ONE ADMINISTRATION
Subject Details Responses by Department
The Intergovernmental Relations in the province are at the weakest point especially at Local Government level.
The Department must interact with the Office of the Premier with the view of reviewing the Provincial IGR Framework.
The department working with the Office of the Premier and Provincial Treasury has since developed a Provincial and Local Government and Intervention Framework and a Memorandum of Understanding. This framework and MOU are intended to ensure that a coordinated and integrated support to municipalities is enhanced. Further to this these documents are to assist in ensuring linkages of IGR Structures in the Province for improved service delivery.
The critical posts of the Head of Department and the Senior Manager in the Office of the HOD are vacant, and this state of affairs in turn compromises effective service delivery.
The processes that are underway to appoint Head of Department must be fast tracked and the recruitment of the Senior Manager office of the HOD must be initiated.
The post of HOD had been advertised and a candidate will assume duties on 1st March 2018. The post of a Senior Manager in the Office of the HOD has been included in the Annual Recruitment Plan for 2018/19 and will be advertised during 2018/19 period.
Despite the fact that the Department had reviewed its organizational structure it is however not in line with the generic structure recommended by the Department of Public Service and Administration.
The Office of the Premier must assist the Department in ensuring the finalization and adoption of the organogram that is in line with the recommendation of the Department of Public Service and Administration
The organizational structure has been reviewed to comply with the Department of Public Service and Administration generic structure after the feedback from the Office of the Premier. The structure is being costed by the Chief Financial Officer before it is presented to the MEC and the Officer of the Premier.
The Department had failed to spend R11, 7 million which is 5%
The Department must develop a turn-around plan that will ensure
The Department has developed a Recruitment Plan to fill the vacancies
62
PROGRAMME ONE ADMINISTRATION
Subject Details Responses by Department
of the allocated budget which is more than accepted standard of underspending of 2%.
that they do not underspend the allocated budget such a plan must be submitted to the Committee within 30 days.
before the end of the financial year. There are 195 posts that were advertised in the financial year. There are 130 posts that have already been filled in the current financial year. A Red Tape Reduction Project is in place to accelerate processes in the Recruitment Section. Many operational recruitment activities in the recruitment process have been eliminated to shorten the recruitment turnaround times.
The Department is underspending on payment for Capital Assets and at the year-end it has only spent 57% which is far below the acceptable norm.
Mechanisms must be put in place on how the Department is going to prevent underspending on payment for Capital Assets in the next financial year.
Procurement for all capital assets projects for the next financial year will be advertised towards the end of 4th quarter. Sitting of bid committees will be done during the first quarter so that service providers can start delivering during the second quarter. Schedule of meetings for bid committee members will be developed.
The vacancy rate at the Department is standing at 19% and 21% of this at the management level.
The Department must submit a plan on how it is going to fill the vacant posts; a report must be submitted to the Committee within 30 days.
The Department has developed a Recruitment Plan to fill the vacancies before the end of the financial year. There are 195 posts that were advertised in the financial year. There are 130 posts that have already been filled in the current financial year. A Red Tape Reduction Project is in place to accelerate processes in the Recruitment Section. Many operational recruitment activities in the recruitment process have been eliminated to shorten the recruitment turnaround times.
The Department is lagging behind in the implementation of the equity targets and it is still male dominated especially at the management echelon with 66% African males and 33% African females.
The Department must submit a recruitment plan within 30 days to the Committee indicating how they intend to implement the employment equity in the next financial year and beyond.
The Employment Equity targets will be submitted together with measures to advance employment equity within the prescribed time-frame.
Despite the fact that Performance Agreement is a tools used to measure performance four members of Senior Management did not sign Performance Agreements.
The Department must ensure that measures are taken against the senior managers who did not sign the performance agreement and a report on steps taken be submitted to the Committee within 30 days.
A Departmental circular was issued to managers who have not submitted and they have subsequently submitted their performance agreements.
During the year under review the Department had incurred an expenditure of R12, 5 million on legal costs.
The Department must submit to the Committee a report detailing how this expenditure was incurred a detailed plan on how the department will avert such a
The department incurred R12 507 766, 35 in the last financial year. This huge expenditure is as a result of invoices that the Superintendent General refused to pay to the department of Justice and
63
PROGRAMME ONE ADMINISTRATION
Subject Details Responses by Department
huge expenditure in future must be submitted within 30 days of the adoption of this report.
Constitutional Development. Some of these invoices were from the cases involving the Superintendent General whereby Msiwa commission was appointed by the MEC in order to investigate allegations of sex for jobs and misconduct. These invoices were not paid in the 2014/15 financial year. The department of Justice and Constitutional Development when compiling invoices, mixed them and that resulted in them not being paid because some of these invoices were coming from the Msiwa Commission. All the invoices involving the Msiwa Commission were not paid during the reign of Mr. S. Khanyile who was the Superintendent-General. In the same financial year, the Premier’s decision on recommendations of the Committee of the Commission on Traditional Leadership Claims and disputes were all reviewed by the applicants who were not satisfied with the Premier’s decision and almost all these matters were opposed by the Premier and the MEC. These review proceedings were not as a result of the Department’s failure to implement legislation, but as a result of the investigations, recommendations of the Committee of the Commission that deals with Traditional Leadership claims and disputes and the Premiers decision. Since the department deals with Traditional Leadership Institutions and is the one that must implement the Premier’s decision, it will be cited as the respondent. Now we had to go to 2015/16 financial year with invoices that were not paid. In the 2015/16 financial year, the budget of Legal Fees was cut/ or reduced and that resulted in the department running out of legal fees early in 2015/16. Whilst we ran out of legal fees, the department of Justice and Constitutional Development continued to submit invoices for payment whilst we did not have a legal fees budget. In 2016/17 we had to pay some invoices fromprevious financial years and current invoices. This is the reason why the department incurred this huge amount.
64
PROGRAMME ONE ADMINISTRATION
Subject Details Responses by Department
PLANS TO AVERT PAYMENT OF HUGE AMOUNTS IN FUTURE. The department approved a litigation management policy this financial year which is aimed at managing litigation effectively in order to avoiding huge legal costs. In the current financial year 2017/18, we have already surrendered R1.5 million and we are still having a positive balance. In terms of this policy we will also review litigation trends in the department and come up with measures that would mitigate incidence of litigation, these would include, but not limited to compliance with legislative prescripts that governs traditional leadership in the Eastern Cape and also adhere to constitutional legislations like Promotion of Administrative Justice Act, 2000 (PAJA) and Promotion of Access to Information Act, 2000 (PAIA) when the decision is about to be taken.
PROGRAMME TWO LOCAL GOVERNANCE
Subject Details Responses by Department
Despite the fact the Department has provided continuous support at Mnquma and Enoch Ngijima Local Municipalities there is however continued instability and non-improvement of service delivery in the said municipalities with the positions Municipal Managers and the Chief Financial Officers vacant.
The Department must assume responsibility of the Mquma and Enoch Mgima Local Municipalities in terms of section 139(b) of the Constitution of the Republic of South Africa for their failure to fulfill their executive obligation.
The department through the leadership of the MEC engaged the Troikas of the two municipalities with a view to attend to the challenges that are confronting these municipalities. Support plans were developed by the administration of both municipalities. Support was rendered to the municipalities by means of seconding officials who would be acting as Municipal Managers, but that initiative was not well received by the councils of these municipalities. On the 8th November 2017 and on the 10th November 2017, letters of intention to invoke section 139 (1) (a) of the Constitution were served on both municipalities respectively (Mnquma and Enoch Mgijima). On the 29th November 2017 a cabinet memorandum was presented to the EXCO wherein the department was requesting approval to intervene in terms of section 139(1) (b). Presently the department is making an assessment on the responses submitted by the municipalities on why the
65
PROGRAMME TWO LOCAL GOVERNANCE
Subject Details Responses by Department
department should not invoke section 139 of the Constitution.
Makana Local Municipality is operating without a Municipal Manager and the department has seconded an acting person that is costing the Municipality R180 000.00 which is far above the monthly salary of an appointed Municipal Manager.
The Department must assist the Municipality to appoint the Municipal Manager and in the meant time section 154 of the Constitution must be applied to assist the municipality with additional costs that are associated with the payment of acting Municipal Manager
The department would like to put on record that the seconded official was never paid an amount of R180 000. Mr Gomomo who was seconded after the appointment of the Administrator came to an end was remunerated by the department at the same rate as that of a Senior Manager in the Public Service. Attempts were made by the department to second an Acting Municipal Manager (Mr Mpungose), but these failed as the municipality and Mr Mpungose could not reach an agreement on his subsistence and travel allowance due to a lack of funds. Subsequent to this the department served the municipality with a letter of intention to invoke Sec 139 (1) (a) of the Constitution. In their response the municipality has requested the DM to second its Municipal Manager to act as a Municipal Manager at Makana for a period of three months. One of the key issues in the Terms of Reference (TORs) of the Administrator, should Sec 139 (1) (a) of the Constitution be invoked, is to facilitate the appointment of a Municipal Manager.
Despite the fact that the Department has written a letter to the mayor of Matatiele Local Municipality to act against the Municipal Manager for improper handling of R8, 7 million that was transferred to the Municipality for the provision of elections infrastructure the Mayor did not act and instead had solicited for the legal opinion on that matter.
The Department must report the matter to law enforcement agencies to investigate the Municipal Manager who has allegedly committed an act of financial misconduct in terms of section 81 of Public Finance Management Act.
The investigation was conducted by PWC and was sponsored by National Treasury (SAS) and the report is with the MECs Office. Security and Anti-Corruption was issued with an extract to serve the Mayor of Matatiele to take actions against the MM for mismanagement of the funds. The final implementation records should be verified with the office of MEC.
Despite the fact that four Municipalities were amalgamated to improve their finances, the financial viability of these municipalities remains a problem as they are constantly struggling to meet their financial obligations.
Financial challenges that are faced by the amalgamated Municipalities must be escalated to the National Treasury since there are no enough funds from the provincial revenue account.
The Department has noted the recommendations and will liaise with the Provincial Treasury to escalate the recommendations to National Treasury.
Despite the poor performance of the Department Government
The Department must build capacity of its DGITO so that it can
The organogram amendment that considered the DGITO additional posts
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Subject Details Responses by Department
Information Technology Office (DGITO) there is no dedicated ICT unit in the department to support Local Municipalities.
discharge its function of supporting ICT to local municipalities effectively.
to support municipalities has been approved by the MEC on 21 December 2017.
Despite the fact that Operation Masiphathisane was launched to ensure maximum public participation and to improve service delivery at local government level, Nelson Mandela Metro and Kouga Local Municipalities are refusing to execute this operation.
The department must ensure that Operation Masiphathisane is operational in these two municipalities.
The department is engaging both municipalities to implement the programme and it is also looking on mechanisms to persuade the municipalities to comply with the approach. In the Nelson Mandela Metro Municipality the department has already trained all the ward committees on roles and responsibilities, development of ward operational plans and the role of ward committees in the IDP process.
Gariep, Nkonkobe, Nxuba, Tsolwana, Inkwanca, Lukhanji, Ikwezi, Baviaans, Makana, Sakhisizwe, Umzimvubu, Ntabankulu Local Municipalities and O.R Tambo District Municipality did not submit signed performance agreements for the section 54A and 56 Managers.
The Department must ensure that performance agreements of section 54A and section 56 Managers are signed in line with the requirement the Municipal Systems Act.
The department has issued a circular to all municipalities to remind them to submit their signed performance agreements. All outstanding performance agreements with the exception of Ntabankulu, Enoch Mgijima and Walter Sisulu Municipalities have been submitted in the current financial year. The department has, in writing, requested these municipalities to submit their performance agreements as a matter of urgency.
There are 19 vehicles allegedly kombis that were hired by Mbashe Local Municipality which are too costly in the opinion of the Committee than procuring municipal vehicles.
The Department must conduct a cost benefit analysis of hiring and purchasing of vehicles at Mbashe to see if there is a value for money for those hired vehicles.
The department will conduct the cost benefit analysis as recommended.
PROGRAMME THREE DEVELOPMENT AND PLANNING
Subject Details Responses by Department The critical position of a Chief Town and Regional Planner; Spatial Planning is vacant.
The Department must ensure that the position of a Chief Town and Regional Planner is filled in order to ensure that Provincial Spatial Planning is not compromised.
Interviews have been held and a recommendation will be forwarded to the Acting HOD.
The victims of 2003 disasters in Alicedale are waiting for compensation for the losses they suffered at that time and the temporary structures that were constructed are now dilapidating.
A plan of action on how the Department is going to compensate the victims of 2003 disasters must be submitted to the Committee within 30 days.
The department will follow up with the Department of Human Settlements on the submission of the Plan of Action.
The Department has not yet developed a White Paper and the Draft Bill on provincial Spatial Planning and Land Use
The Office of the Premier must ensure that it sends the delegation to the Department so that the
Delegation received and the Department in conjunction with OTP will prepare a process plan.
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PROGRAMME THREE DEVELOPMENT AND PLANNING Subject Details Responses by Department Management and this is attributed to delays by the Office of the Premier to send delegation as per section 10 (3) of SPLUMA No.6 of 2013
department can start a process plan of drafting a SPLUMA Bill.
PROGRAMME FOUR TRADITIONAL INSTITUTIONAL MANAGEMENT AND PROGRAMME FIVE HOUSE OF TRADITIONAL LEADERS
Subject Details Responses by Department The Department is constructing two Traditional Council offices per financial year due to budgetary constraints this is despite the fact that there is a huge backlog of 201 traditional office structures in the province.
The Department must submit to a Committee a plan on how it is going to fast track the construction of the Traditional Council offices such a plan must include a partnership with Municipal Councils and the private sector.
During the 2018/19 period, the department will facilitate development of a long term Infrastructure Strategy for Traditional Leadership Institutions. This will encompass consultation with Municipalities, NGOs, government institutions, and other Key stakeholders.
The Strategy on Traditional Leadership Claims and Disputes is still in a draft phase.
The Department must ensure that the draft Strategy on Traditional Leadership Claims and Disputes is finalised and adopted since it is going to assist in the prevention of the continuous traditional leadership claims and disputes.
The Strategy on Traditional Leadership Claims and Dispute has been finalised, approved and signed off during February 2018. The department will ensure communication and implementation of the strategy moving forward.
RESPONSES TO HOUSE RESOLUTIONS ON FINANCIAL OVERSIGHT REPORT
PROGRAMME ONE ADMINISTRATION
Subject Details Responses by Department The Department is under spending on Compensation of Employees due to delays in the filling of vacant funded post
The Department must ensure that the under spending on Compensation of Employees is addressed by ensuring that all the vacant funded post are filled. .
The Department has developed a Recruitment Plan to fill the vacancies before the end of the financial year. There are 195 posts that were advertised in the financial year. There are 130 posts that have already been filled in the current financial year. A Red Tape Reduction Project is in place to accelerate processes in the Recruitment Section. Many operational recruitment activities in the recruitment process have been eliminated to shorten the recruitment turnaround times.
The Department is underspending its allocated budget and the under expenditure is standing at R10. 591million.
The Department must submit a plan to the Committee which details how the potential under-spending on its total budget will be prevented.
The under-expenditure is due to transfers that are earmarked for projects at Municipality level whose implementation pace is fully dependent on Municipalities and
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their appointed implementing agents. Municipalities have committed that they will spend the funds in full and the delay was in their procurement process for engaging and contracting an implementing agent. Other funds are earmarked for the implementation of the salary determination for Public Office Bearers which awaited the Proclamation from the Presidency, this has since been implemented on 15 February 2018.
An amount of R65 million in Irregular Expenditure and R13 000 in Fruitless and Wasteful Expenditure was incurred at half year.
The Department must take actions against those involve in such a financial misconduct by invoking its policy on Unauthorised, Irregular, Fruitless and Wasteful expenditure.
The department did not incur Irregular Expenditure (IE) at half year, R65m IE relates to previous financial years dating from 2008/09. Fruitless & Wasteful Expenditure amounting to R13 000 is under investigation and the department will implement recommendation once the investigation is final.
The department has received an unqualified audit opinion with 16 findings which relates to performance information.
The Department must ensure that its audit intervention plan addresses all the findings identified so that it can progress to an unqualified audit with no findings for the current financial year.
Recommendations are noted and department is addressing the findings in the Audit Improvement Plan.
The Department is underspending on Payment of Capital Assets and this is attributed to shortage of staff at the Supply Chain Management (SCM) unit.
The Department must come up with a plan on how it is going to fill all the positions that are vacant in this unit such a plan must be submitted to the Committee within 30 days.
The plan is in place and will be updated and submitted within the prescribed time frame.
PROGRAMME TWO LOCAL GOVERNANCE
Subject Details Responses by Department This programme is projecting over-expenditure and at the half year it has spent 53% of its budget.
The Department must within 30 days submit a plan to the Committee which details how the potential over-expenditure in this Program will be prevented
The programme has transferred funds to certain municipalities which relates to the Eskom debt, but were not projected for in the reporting period. Revision of projections has been made to rectify this anomaly.
Despite the fact that the Department has assisted the amalgamated municipalities with R40 million to pay ESKOM debts these municipalities are still owing R160 million to ESKOM.
The Department must engage the National Department of Cooperative Governance and Traditional Affairs to source funding from National Treasury to assist these municipalities.
On the 5th of December 2017 the department had a meeting with Eskom, SALGA, National Treasury, Provincial Treasury and the Ministerial Task Team from the National Department of Cooperative Governance and Traditional Affairs to discuss the
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PROGRAMME TWO LOCAL GOVERNANCE Subject Details Responses by Department
Eskom debt of the affected municipalities A report on the outcome of this meeting will be forwarded to the Minister of the National Department of Cooperative Governance and Traditional Affairs by the Ministerial Task Team.
PROGRAMME THREE DEVELOPMENT AND PLANNING Subject Details Responses by Department
There is under expenditure in this program which stood at 28% at half year.
The Department must within 30 days submit a plan to the Committee which details how the potential under-expenditure in this Program will be prevented.
Under expenditure has been caused by the late start in the implementation of ICT project by the department. On the electrification, municipalities have delayed its implantation process and the department will fast-track the implementation process by engaging municipalities.
The electrification of household to hotspot municipalities started late due to cumbersome procurement processes of the municipalities.
A detailed plan on how the Department is going to assist these municipalities to fast track the electrification project must be submitted to the Committee within 30 days.
All the 7 supported municipalities have appointed service providers to implement the electrification project, the department convened project steering committee meetings in all 7 municipalities on a monthly basis to verify work done and receive invoices for payments purposes, payments dates are schedules every Thursday of the week to process the payments.
At the half year there was no linkage between the provincial Disaster Management centre and the District Disaster Management centres due to delays in the procurement of the Information and Technology (ICT) systems.
The Department must ensure that the ICT systems for the disaster management centre are procured in order to link the centre with the district management centres
Aurecon has been appointed for the installation of the ICT for the Disaster Management Centre with effect from the 24th of August 2017. The duration of the appointment is over an MTEF period from 2017/18 to 2019/20. The order has been generated and committed. Project plan has been developed and been implemented.
An amount of R70 million earmarked for the disasters at O.R. Tambo district is being underspent due to delays related to fact that it was ring-fenced under the Department of Cooperative Governance instead of the affected departments by the Provincial Treasury.
The MEC must engage with the Office of the Premier and Provincial Treasury with the view of establishing a provincial disaster fund as it is the case at the national level.
The department is developing the submission to the Executive Council requesting Provincial Disaster Grant.
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PROGRAMME FOUR TRADITIONAL INSTITUTIONAL MANAGEMENT AND PROGRAMME FIVE HOUSE OF TRADITIONAL LEADERS
Subject Details Responses by Department Despite the fact that there are ten regions that have traditional communities in the province the Department has conducted genealogy research at the Dalindyebo region only.
The Department must ensure that it conducts the genealogy research in all ten regions in the province.
The department is unable to conduct genealogy research in all ten regions in the province in a financial year due to financial and human resource constraints. The target therefore is the hot spot areas.
The construction of Traditional Council (TC) offices started late due to the delays by the Department of Roads and Public Works in appointing contractors.
The Department must have a representative in the structures of the Department of Roads and Public Works which is an implementing agency on its behalf.
The department is represented in Department of Roads and Public Works procurement Committee dealing with Traditional Leadership Infrastructure projects. The department also participates in monthly monitoring meetings of Traditional Council infrastructure projects together with Department of Roads and Public Works on the construction sites.
RESPONSES TO THE HOUSE RESOLUTIONS ON BUDGET VOTE
PROGRAMME ONE ADMINISTRATION Subject Details Responses by Department Some provincial departments do not participate in municipal Integrated Development Plans (IDP’s) which is indicative of poor Intergovernmental Relations in the Province.
The Department must liaise with the Office of the Premier to ensure that all provincial departments participate in municipal IDPs.
The department has since developed a concept document which seeks to engage both the Office of the Premier and Provincial Treasury in cooperation with SALGA-EC on improving the provincial IGR system. To date, there are processes that are underway which will result into a Provincial IGR Working Session in this regard. The outcome of this session will see an institutionalized approach being adopted and implemented at a provincial government level. It is intended to enhance an effective implementation of the provincial IGR system as well as development of credible municipal IDPs.
Despite the complaints by the Department on non-approval of vacant position by the Provincial Coordinating Monitoring Team (PCMT), job evaluations have not been conducted by the department for two hundred and twenty three (223) posts.
The Department must conduct and finalise job evaluations for all 223 positions.
The Department will conduct and finalize the job evaluations of the 223 posts during the 2017/2018 financial year.
The funded critical post for the Head of Department remains vacant for almost a period of one year.
The Department must ensure the position of the Head of Department is filled as a matter of urgency.
The Office of the Premier has now appointed a selection panel so the
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PROGRAMME ONE ADMINISTRATION Subject Details Responses by Department
process under OTP’s guidance is underway.
The Annual Performance Plan of the Department is not aligned to the National Development Plan (NDP) and Sustainable Development Goals (SDGs).
The Department must ensure that its APP is aligned to the NDP and SDG’s.
The Chapter for the sector from the NDP is Outcome 9. The National MTSF 2014 – 2019 and Revised Outcome 9 has set targets that the sector must achieve according to the NDP and SDG’s. The National standardized/ customized indicators and targets are included in the Departmental APP.
National Treasury’s forensic investigation into the Department and the Msiwa report are now concluded
The Department must ensure that the findings and recommendations of this forensic investigation are implemented. A copy of this report as well as the Msiwa report must be submitted to the Committee within 30 days.
A letter was sent to the Matatiele Municipality pertaining to the aspect of the monies transferred to Matatiele for the Mayor to take actions against the Municipal Manager. A letter was sent to the Premier on the matters pertaining to the former HOD, for the Premier to take action.
The vacancy rate at the Department is standing at 23% , while the vacancy rate at Senior management level is standing at and at 22.58%.
The Department must submit a plan on how it is going to fill the vacant posts; a report must be submitted to the Committee within 30 days.
A comprehensive selection plan is attached, currently the Department is standing at 2% vacancy rate of SMS level.
PROGRAMME TWO LOCAL GOVERNANCE
Subject Details Responses by Department There are serious tensions among the members of Troika in most municipalities in the province.
The Department must organize training on the roles and responsibilities of Troika in order to ensure each member is fully aware his/ her roles.
The department is currently involved in a roll – out training of councilors on the Code of Conduct for councilors and as part of these workshops roles and responsibilities of Political Office Bearers is emphasized.
The Department has set aside an amount of R4.5 million to assist Inxuba Yethemba, Sundays River Valley, and Dr. Beyers Naude Municipalities to improve their audit outcomes.
The Department must ensure that the budgeted amount is used as planned. A plan of how this amount will be utilized must be submitted to the Committee within 30 days of adoption of this report.
The conditions attached to the transfer stipulates: -Submission of signed business plans by the municipalities -Signed acceptance of conditions -Signed declaration of assurance -Acknowledgement of receipt of transfers by the municipalities -Signed progress reports on the expenditure and progress, and Close out reports by the appointed service provider on the finalisation of the project.
The Department has set aside an amount of R40 million to assist the newly established municipalities in the province to reduce ESKOM debt
A detailed plan of action and schedule of payment from Eskom must be submitted as well as the breakdown expenditure of R15
The allocation for the new established municipalities is as follows: Raymond Mhlaba R 11, 361 m,
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PROGRAMME TWO LOCAL GOVERNANCE Subject Details Responses by Department and, R15 million is set aside for extensive support to these municipalities.
million on supports to these municipalities must be forwarded to the Committee.
Dr Beyer Naude R 3, 721 m, Walter Sisulu R 24, 918 m TOTAL R 40, 000 m The conditions attached to the transfer stipulates: Submission of invoices by Eskom Submission of proof of receipt of payment by Eskom.
The Department is planning to support 25 municipalities to have functional public participation units.
The Department must ensure that all municipalities have functional public participation units.
In line with the B2B pillar one and implementation of Operation Masiphathisane, the department in the 2017/18 financial year has planned to ensure that all municipalities have public participation units that are functional.
An amount of R15 million has been allocated to 7 hotpots municipalities for electrification.
A business plan of identified municipalities including the financial implication of targeted municipalities must be submitted to the Committee.
Business plans in this regard have been developed and were submitted to COGTA by seven identified municipalities.
There is non-compliance by some municipalities with the Municipal Systems Act, 2000 (Act No.32 of 2000) and Local Government Regulations on the appointment of section 56 and 57 managers.
Since the contracts of some Municipal Managers and Chief Financial Officers (CFOs) are about to expire, the Department must ensure correct procedures are followed to appoint new managers.
COGTA has issued a Circular to ALL the municipalities giving guidance on the legislative requirements on dealing with the Employment Contracts of Municipal Manager & Section 56 Managers; Municipal Managers and Senior Managers work shopped on the legislative requirements of the MSA of 2000 as amended & LG: Regulations of 2014; Visit to municipalities with recruitment challenges to give hands-on support namely: BCMM, Makana, Inxuba Yethemba and Dr Beyers Naude LM’s. COGTA giving guidance and technical advice in the shortlisting and interview sessions on an invitation basis.
Despite the fact that the Municipal Structures Act, 1998 (Act No.117 of 1998) requires municipalities to establish ward committees the Nelson Mandela Metro has not yet established ward committees for all its wards.
The Department must assist the municipality to establish ward committees as per the requirements of section 73 of the Municipal Structures Act.
The outstanding municipality namely NMBM has been engaged to fast track their ward committee establishment and they have submitted a plan to complete the process by the end of June 2017.
It appears that some Municipalities do not have proper procedures for considering indigent applications from members of the public.
The Department must assist municipalities with proper and legal procedures for considering indigent application as this in turn negatively affects members of the public who
The concern of the Portfolio Committee is acknowledged, however the National Indigent Policy Framework sets the fundamental bases on which Free
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PROGRAMME TWO LOCAL GOVERNANCE Subject Details Responses by Department
should be benefitting from such processes.
Basic Service must be provided. The Department of Cooperative Governance and Traditional Affairs will intensify support to municipalities by advising them to conduct awareness and consumer education informing the beneficiaries on how best to apply. This will ensure that the programme reaches legitimate indigent households so as to maximise the impact and uplift equality of life of the indigent households.
PROGRAMME THREE DEVELOPMENT AND PLANNING Subject Details Responses by Department Despite the fact that Ngqeleni, Libode, Kirkwood, Alice, Mt Fletcher, Port St Johns, Ntabankuku, Mt Alyliff and Mbizana were identified for Small Towns Development there are no visible signs of development in these towns.
The Department must work together with the Office of the Premier to coordinate support towards the implementation of small towns revitalization programme as OTP has also planned and budgeted for this revitalization programme.
The department initially targeted Alice, Port St. Johns, Idutywa, Engcobo, Peddie and Jansenville primarily focusing on beatification of the towns as well as maintaining economic infrastructure. The following projects were thus undertaken and completed: - Idutywa: Upgrading of the park in town to improve the appeal of the town. PSJ: Refurbishment and upgrading of Hawker Stalls. Peddie: Upgrading of the park in the town. Alice: Paving of sidewalks to enhance the appeal of the town. Jansenville: Paving of sidewalks to improve the appeal of the town. Engcobo: Refurbishment of Small Industrial Park (Transido). The Office of the Premier also came aboard when the programme was experiencing financial constraints and a New Small Town. Development Implementation Framework was developed, which now targeted Ngqeleni, Libode, Kirkwood, Alice, Mt Fletcher, Port St Johns, Ntabankuku, Mt Alyliff and Mbizana however, the framework did not pronounce on roles and responsibilities of individual departments. The programme has now been funded with 136 million for the 2017/18 financial year and it focusses on the following:
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PROGRAMME THREE DEVELOPMENT AND PLANNING Subject Details Responses by Department
Water and Sanitation Roads and Electricity Project designs have now been completed, however the department will still meet with the Office of the Premier to delineate clear roles and responsibilities for better coordination as well as implementation.
The Nelson Mandela Metro, Amathole and Sarah Baartman districts are heavily affected by drought and the realities of the climate change.
The Department must source drought funds from the department of finance to assist these municipalities as per the announcement of the MEC responsible for finance.
NMBM COGTA has engaged with NMBM to discuss the extent and severity of drought. The municipality has indicated its intent to declare a local state of drought and has since been advised on the declaration processes. A Council resolution and a comprehensive report have been requested for submission to PDMC and NDMC to facilitate the classification of the drought and possible funding assistance. DWS and DRDAR are being engaged by COGTA to determine the drought effects on their sectors and their response capabilities. The municipality has also been advised to establish a central JOC for both NMBM and SBDM for the purpose of coordinating and managing the drought in the municipalities respectively. SARAH BAARTMAN DM SBDM has submitted a Council resolution to COGTA to declare a Local State of Disaster for Drought. The Council resolution has been acknowledge by the Department, and through the PDMC a comprehensive report on draught has been requested from the municipality. The report will highlight the magnitude and severity, drought implications on water provision and cost implications. The PDMC has since notified the NDMC about the declaration and requested to assist with the classification of the situation. The DM has is participating in the monthly PDTT meetings. AMATHOLE DM COGTA is processing the request for re-declaration of state of drought
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PROGRAMME THREE DEVELOPMENT AND PLANNING Subject Details Responses by Department
that was submitted by Amathole District Municipality. The PDMC has the basic Disaster Management Information and Communication Technology infrastructure in place. This includes a Central Communication Centre (CCC) for Call-Intakes and Dispatching and a Technical Operations Room (TOPs Room) COGTA advertised the project to invite bidders. Evaluation of bids was done. A Bid Adjudication Committee (BAC) report has been submitted to the HOD with recommendations for the appointment of the recommended service provider. The report has also been submitted and presented to IBAC, however, the bid has been referred back to the BAC for re-evaluation as there were TAX compliance issues raised with the eliminated bidder. Funding was allocated as per business plans submitted by affected departments such as:
- Education, - Road & Public Works, - Health, - Human Settlements, and - Agrarian Reform for
response, recovery and rehabilitation.
Funds were optimally spent by the departments with the exception of Human Settlements. The department of Human Settlements sighted capacity challenges which under pinned
- non expenditure, - poor performance, - non-submission of
expenditure reports and - non-attendance of the
Provincial PSC meetings. Several meetings were held with the department to try and unlock bottlenecks and to provide support with no success. Department of Human Settlements attempted to apply for a roll-over of the unspent funds, but was not successful due to non-expenditure and as a results
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PROGRAMME THREE DEVELOPMENT AND PLANNING Subject Details Responses by Department
the funds were sent back to Provincial / National Treasury.
The Disaster Management Centre does not have Information and Communication Technology (ICT) system to coordinate provincial disasters.
The Department must ensure that the ICT for the Disaster Management Centre is procured within three (3) months from the date of the adoption of this report.
The PDMC has a basic Disaster Management Information and Communication Technology infrastructure in place. This includes a Central Communication Centre (CCC) for Call-Intakes and Dispatching and a Technical Operations Room (TOPs Room). COGTA advertised the project to invite bidders. Evaluation of bids was done. A Bid Adjudication Committee (BAC) report has been submitted to the HOD with recommendations for the appointment of the recommended service provider. The report has also been submitted and presented to IBAC, however, the bid has been referred back to the BAC for re-evaluation as there were TAX compliance issues raised with the eliminated bidder.
The Department has set aside an amount of R1.6 million to roll out the Spatial Planning and Land Use Management Act, 2013 (Act No.16 of 2013) (SPLUMA) despite the fact that this activity has been done already according to page 378 of the Estimates of Provincial Revenue and Expenditure.
The Department must redirect these funds towards other priorities of the department.
The roll out of SPLUMA is a medium to long term venture i.e. anything from 3-5 + years. The roll out in not uniform. Different municipalities face different issues e.g. the newly amalgamated LMs have to start from scratch. In due course the roll out will cost more as municipalities bring their SDFs and LUMS in line with SPLUMA provisions such as the preparation of Schemes.
An amount of R70 million has been set aside in response to OR Tambo district heavy rain and thunderstorm disaster which occurred in January 2017; this is despite the fact that the victims of 2010 flood disasters are still waiting for compensation for the losses they suffered.
The Department must facilitate the compensation of the victims of the 2010 flood disasters and must submit to the Committee a report within 30 days.
Funding was allocated as per business plans submitted by affected departments such as: - Education, - Road & Public Works, - Health, - Human Settlements, and - Agrarian Reform for response, recovery and rehabilitation. Funds were optimally spent by the departments with the exception of Human Settlements. The department of Human Settlements sighted capacity challenges which under pinned - non expenditure, - poor performance,
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PROGRAMME THREE DEVELOPMENT AND PLANNING Subject Details Responses by Department
- non-submission of expenditure reports and - non-attendance of the Provincial PSC meetings. Several meetings were held with department to try to unlock bottlenecks and to provide support with no success. Department of Human Settlements attempted to apply for a roll-over of the unspent funds but was not successful due to the non-expenditure and as a result the funds were sent back to Provincial / National Treasury.
The Department is targeting Nelson Mandela Metro, Buffalo City Metro and King Sabatha Dalindyebo Local Municipality for Urban Development Initiatives (UDI) despite the fact that KSD is already benefitting from the Presidential Intervention Project. The Department has also not identified the townships that will benefit from the UDI in KSD Local Municipality.
The Department must work together with the Office of the Premier to coordinate implementation of the Presidential Intervention Project at KSD and redirect the funds that were targeted for KSD to other priorities of the Department. A plan reflecting criteria used to identify the sites to benefit from the UDI project must be submitted to the Committee within 30 days of adoption of this report.
The Integrated Urban Development Programme (IUDP) forms part of the King Sabatha Dalindyebo Presidential Intervention (KSDPI). During the pilot first of the Urban Development Programme (URP), the department, through the programme supported KSDLM with the development of its Master Plan, which was utilised to mobilise the support of the President and is still being utilised as the roadmap in the implementation of the (KSDPI). The township that is targeted within the KSDLM is Ngangelizwe due to low levels of development in that area. The IUDP continues through an improved approach from the pilot phase of the Urban Renewal Programme (URP) which was launched by the former President, Mr. Thabo Mbeki. The programme targeted several townships country wide and the following within the Province: Mdantsane in BCMM, Duncan Village in BCMM, Ngangelizwe in KSDLM and Helenvale in NMBM. The URP was closed in 2011 and the close – out report for the pilot phase recommended the continuation of support to the above – mentioned townships. The programme has now been resuscitated in the 2016/17 financial year and an Integrated Urban Development Framework developed. It is firstly on the basis
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PROGRAMME THREE DEVELOPMENT AND PLANNING Subject Details Responses by Department
of the pilot phase of the URP that the sites are targeted. Secondly, the Integrated Urban Development Framework talks about balanced developed between rural and urban spaces as well as the reduction of transaction costs and exposure to economic opportunities for people that migrate from rural to urban areas. People who migrate from rural to urban spaces mostly find accommodation in the targeted townships, which then requires a concerted effort to ensure that economic inclusion happens in these townships. The townships that have been targeted besides the URP pilot sites are therefore Motherwell and Walmer.
The Department is going to support Alfred Nzo and Joe Gqabi districts by conducting cadastral surveys for access to ownership of land but OR Tambo is not targeted as many development projects are halted due to many land claims in this district.
The Department must initiate a plan of resolving land claims in OR Tambo district as well.
The Commission on Restitution of Land Rights is mandated to facilitate the resolution of land claims. The Department will support development initiatives of bringing together all stakeholders relevant to land claim specifically in KSDM. To this effect, together with the Commission and KSDM, a Joint Coordinating Committee chaired by the MEC has been established as well as the Technical and Legal Work Streams in order to fast-track the resolution of the claim in order to unlock socio-economic developments.
PROGRAMME FOUR TRADITIONAL INSTITUTIONAL MANAGEMENT AND PROGRAMME FIVE HOUSE OF TRADITIONAL LEADERS
Subject Details Responses by Department There are growing tensions among the Royal Families that has resulted in many claims and disputes.
The Department must develop a plan that will capacitate Royal families on their role to guide traditional leaders with the view of solving traditional leadership claims internally.
The department has developed a long term Traditional Leadership Capacity Building Strategy which has been consulted widely with key stakeholders, the capacitation of Royal Family has been considered in the strategy.
The traditional male initiation remains a challenge due to deaths during both winter and summer initiation seasons.
The Department must develop regulations for the Eastern Cape Customary Male Initiation Practice Act and ensure its implementation
Draft regulations on the processes and procedures for the EC Customary Male Initiation Practice Act 5 of 2016 has been developed.
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PROGRAMME FOUR TRADITIONAL INSTITUTIONAL MANAGEMENT AND PROGRAMME FIVE HOUSE OF TRADITIONAL LEADERS
Subject Details Responses by Department in order to curb deaths during initiation
Publication of this draft was gazetted on 5 May 2017 through Provincial Notice 74 of 2017 and closing date for comments being 30 calendar days from the date of publication.
The Department has set aside an amount of R1,5 million to purchase vehicles for executive committee members of the House of Traditional Leaders despite the fact that their term is coming to the end towards the end of this year.
The Department must ensure that these vehicles remain the assets of the Department in order to be used by the new executive.
The purchase of the vehicles for the new members of executive committee of the House of Traditional Leaders will be delayed as there is a process of extension of the term of the House up to the end of August 2017, the new members will therefore join the House during September 2017. The procurement and management of these vehicles will be in line with the provincial Handbook on Traditional Leadership Tools of Trade.
GENERAL Subject Details Responses by Department The establishment of the Provincial Coordinating Management Team (PCMT) to regulate the filling of vacant positions across provincial departments has eroded the powers of the HODs and the authority of the MECs.
The Office of the Premier must provide distinct differentiated powers and functions between the executive and HODs vis a vis the PCMT.
Terms and reference for PCMT is attached.
The amounts in the Operational Plan of the Department are riddled with errors and the department is claiming that the correct amounts are captured in the Budget Plan and BAS report.
The Department must ensure that all the documents that are tabled with the Committee are quality assured and that those who are responsible for quality assurance are made to account. An Erratum of the Operational Plan must be tabled as required by the rules of the house.
The Operational Plan is a supporting document to outline the linkage between the Performance Targets (non-financial) and Programme Budgets. The document for public consumption is the Annual Performance Plan and reporting will be done as per the National Framework for Strategic Plans & Annual Performance Plans and the guidelines for Annual report.
The Department must submit a report detailing the implementation of all its responsibilities flowing from the Disaster Management Act, 2002 (Act 57 of 2002) as amended, to the Committee within 30 days after the adoption of this report.
The Department must submit a report detailing the implementation of all its responsibilities flowing from the Disaster Management Act, 2002 (Act 57 of 2002) as amended, to the Committee within 30 days of adoption of this Report
A detailed report is attached.
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3.8 SCOPA RESOLUTIONS Question one Irregular Expenditure Audit Report/finding Paragraph 7
IA: Internal audit has included the audit of Transfer Payments and the Internal Control Dashboard in the 2017/18 Audit Plan that has been approved by the Audit Committee. This will assist in the identification of internal control deficiencies and appropriate recommendations for implementation by management. AC: The Audit Committee has raised its concerns with management over Fruitless and Wasteful Expenditure and management was encouraged to improve controls to eliminate the Fruitless and Wasteful Expenditure. The Audit Committee will further monitor this aspect through the Internal Audit Plan for 2017/18.
Question by the Committee
1.1. Could the Accounting Officer explain why Irregular Expenditure accumulated to the tune of R71, 78 million has thus far not been addressed?
1.2. How will the Accounting Authority be strengthening control mechanisms to circumvent contravention of section 38 (1) (c) (ii) of the PFMA?
1.3. Can you give details of the plan to recover and address this finding, including time line?
Response from Department
1. An amount of R65m has been submitted to National Treasury two years ago for condonement and is awaiting approval.
2. i) Policy on Unauthorized, Irregular and Fruitless & Wasteful expenditure is in place and being implemented. (ii) Department is in a process of creating a Pre-audit section which will assist in strengthening internal controls.
3. i) Department is sending constant reminders to National Treasury to fast track response to request for condonement. (ii) Irregular Expenditure is sent to departmental Security and Anti-corruption unit for further investigation. (iii) Department anticipate to finalise the process before 31 March 2018.
Root Cause What is the underlying cause of the occurrence? Irregular Expenditure incurred in the 2016/17 financial year amounts to R1. 054 m and
R936k is as a result of a contract that was awarded in 2013/14 for construction of the Disaster Management Centre; this was the last payment towards the construction of the Centre and currently department is awaiting condonement from National Treasury.
R118k is due to non-following of procurement processes by departmental employees and memo requesting this Irregular Expenditure to be investigated is on route for approval. Steps to be followed will be determined by outcome of investigation.
Corrective actions What actions has the department taken to rectify the matter as well as the underlying root cause?
Department has developed a policy on Unauthorized, Irregular and Fruitless & Wasteful Expenditure.
Has submitted Irregular Expenditure amounting to R65m for condonement to National Treasury and some to be investigated departmentally.
There is a compliance unit that looks at documentation before an order is generated.
Awareness on new Treasury circulars is done. Time line When will we the corrective action be implemented?
Before the end of financial year i.e. 31 march 2018. Comments by Internal Audit and Audit Committee
IA: The increase in Irregular Expenditure has been noted as a concern. To respond to this matter, internal audit has included the audit of Supply Chain Management process and the Internal Control Dashboard in the 2017/18 Audit Plan that has been approved by the Audit Committee. This will assist in the identification of internal control deficiencies and appropriate recommendations for implementation by management.
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Question one Irregular Expenditure AC: The Audit Committee continuously interrogate the Irregular Expenditure during quarterly meetings and would strongly advise during quarterly meetings and would strongly advise management to find ways of completely eliminating Irregular Expenditure. The committee also monitors the Irregular Expenditure through the Internal Audit work. The Audit Committee would also encourage management to persist in speeding up the processes of condonement from National Treasury.
Question two Fruitless and Wasteful Expenditure Audit Report/finding Paragraph 8
2 As disclosed in note 27 to the financial statements, Fruitless And Wasteful Expenditure of R5,57 million has accumulated over a number of years and was still under investigation at year-end.
Question by the Committee
2.1. Could the Accounting Officer apprise the Committee on the progress or outcomes of the investigations with regard to this finding?
Response from Department Report was submitted to the committee on the 15 June 2017
Root Cause What is the underlying cause of the occurrence? Fruitless And Wasteful Expenditure incurred in the 2016/17 financial year
amount into R162 000 which relates to interest incurred for the late payment of Eskom, Telkom and the Meyers account. These transactions has been submitted to the acting HoD for further investigation in order to recover the money where there was an act of negligence.
Corrective actions What actions has the department taken to rectify the matter as well as the underlying root cause?
Department has developed a policy on Unauthorised, Irregular and Fruitless & Wasteful Expenditure.
Requested Eskom to submit their invoices directly to the department and not at the Kingdoms to fast track the payment.
In a process of creating a Pre-audit section. Time line When will the corrective action be implemented?
Once the investigation report is finalised and that will be before the end of financial year i.e. 31 March 2018
Comments by Internal Audit and Audit Committee
IA: Internal audit has included the audit of Transfer Payments and the Internal Control Dashboard in the 2017/18 Audit Plan that has been approved by the Audit Committee. This will assist in the identification of internal control deficiencies and appropriate recommendations for implementation by management. AC: The Audit Committee has raised its concerns with management over Fruitless and Wasteful Expenditure and management was encouraged to improve controls to eliminate the Fruitless and Wasteful Expenditure. The Audit Committee will further monitor this aspect through the Internal Audit plan for 2017/18.
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3.9 PRIOR MODIFICATIONS TO AUDIT REPORTS
No modifications were made to the Audit Reports.
3.10 INTERNAL CONTROL UNIT
Directorates Internal Controls are addressed through the implementation of recommendations by the Office of the Auditor General as well as the Internal Audit Directorate. The Risk Management Directorate evaluates controls directly linked to risks identified and also makes recommendations regarding the improvement of controls.
3.11 INTERNAL AUDIT AND AUDIT COMMIITTEES In terms of Section 38 in read conjunction with Section 76 & 77 of the Public Financial Management Act (PFMA) the Department has established an Audit Committee. KEY ACTIVITIES AND OBJECTIVES OF THE AUDIT COMMITTEE The Audit Committee conducts its business in terms of its approved terms of reference (Audit Committee Charter). It assists the organisation in discharging its responsibility of oversight over internal controls, Internal Audit, Risk Management, External Audit and Financial Accounting. The Audit Committee reports that it has complied with its responsibilities as prescribed by section 38(1) (a), Sections 76(4) (d) and 77 of the Public Finance Management Act (PFMA) and Treasury Regulation (TR) 3.1. The Audit Committee has adopted a formal terms of reference by way of the Audit Committee Charter, has regulated its affairs in compliance with the charter and has discharged all of its responsibilities as contained therein. AUDIT COMMITTEE MEMBERS AND ATTENDANCE The term of office for the following members came to an end on 31 October 2017 and a new Audit Committee was appointed immediately thereafter. The previous Audit Committee consisted of the members listed hereunder and the number of meetings attended during 2017/18 financial year, as per its approved terms of reference and schedule of meetings. Name of Member
Qualifications Internal or External member
Date appointed Date of expiry of contract
Number of meetings attended
Mr. P.G. Zitumane Chairperson
Master of Business Leadership, Bachelor of Commerce
External member
01 November 2014
31 October 2017
2
Ms. M. A F. Moja
Master of Business Leadership, Bachelor of Commerce, Advanced Certificate Programme in Treasury Management
External member
01 November 2014
31 October 2017
2
Ms I.E. Kriel B Com Accounting, Post-Graduate Diploma in Accountancy, Chartered Accountant South Africa (CA SA)
External member
01 November 2014
31 October 2017
2
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New Audit Committee Members
Name of Member
Qualifications Internal or External Member
Date appointed Number of meetings attended
Ordinary Special Ms. N. Mtebele Chairperson
Higher Diploma in Taxation B-Tech: Cost and Management Accounting
External member
01 November 2017
2 1
Ms. M. A F. Moja
Master of Business Leadership, Bachelor of Commerce, Advanced Certificate Programme in Treasury Management
External member
01 November 2017
2 1
Mr J.P. Korkie Masters in Law (LLM) (Applied) Advanced Diploma in Labour Law Bachelor of Law (LLB)
External member
01 November 2017
2 1
Mr M. Mbedhli B-Tech: Internal Auditing External member
01 November 2017
2 0
KEY ACTIVITIES AND OBJECTIVES OF INTERNAL AUDIT Section 38(1) (a) (ii) of the PFMA requires that the Accounting Officer for a department, trading entity or constitutional institution must ensure that the department, trading entity or constitutional institution has and maintains: “A system of internal audit under the control and direction of an audit committee complying with and operating in accordance with regulations and instructions prescribed in terms of sections 76 and 77”. The Internal Audit Function mandate is derived from the PFMA section 38 read in conjunction with TR section 3.2. Internal auditing provides a supportive role to management and the Audit Committee to achieve their objectives by assisting in the management of risks within the department. The internal audit directorate is responsible for independent and objective evaluation of the department’s system of internal control at a detailed level and to bring any significant business risks and exposures to the attention of management and the committee through the provision of comprehensive internal audit reports. A system to track the implementation of internal audit findings was implemented during the year and this has contributed significantly to ensuring that the internal control environment for the department remains relevant. An Audit Improvement Plan that contains the Auditor General’s findings was also reviewed by Internal Audit and most of the findings were addressed by management. SUMMARY OF INTERNAL AUDIT PERFORMED DURING FINANCIAL YEAR
Internal Audit has performed its work during the 2017/2018 financial year and managed to achieve all its targets. A support was provided to Municipal Development Finance Directorate during their quarterly Municipal Chief Audit Executives Forum.
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3.12 AUDIT COMMITTEE
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS REPORT OF THE AUDIT COMMITTEE. 1. Legislative Requirements.
The Audit Committee herewith presents its report for the financial year ended 31 March 2018, as required by the Treasury Regulation paragraphs 3.1 to 3.1.16 read with section 77 of the Public Finance Management Act, 1999(Act 1 of 1999, as amended by Act No 29 of 1999) 2. Audit Committee Members and Attendance The Audit Committee consists of members listed hereunder and should meet at least four times per annum as per its approved terms of reference. During the year under review the term of office for the Audit Committee came to an end on 31 October 2017 and a new Committee was appointed effective 01 November 2017. The previous Audit Committee consists of the members listed hereunder and held two meetings.
Name of members Number of meetings attended
Ordinary meetings Special meetings
Mr P.G. Zitumane (Audit Committee Chairperson) 2 0
Ms. I.E. Kriel (Audit Committee Member) 2 0
Ms M.A.F. Moja (Audit Committee Member) 2 0
The New Audit Committee consists of the members as listed hereunder and held three meeting in line with its approved Charter. New Audit Committee Members Name of members Number of meetings attended
Ordinary meetings Special meetings
Ms N. Mtebele (Audit Committee Chairperson) 2 1
Mr M. Mbedhli (Audit Committee Member) 2 0
Ms. M.A.F. Moja (Audit Committee Member) 2 1
Mr J.P. Korkie (Audit Committee Member) 2 1
3. Audit Committee Responsibility The Audit Committee reports that it has complied with its responsibilities arising from section 38 (1) (a) (ii) of the Public Finance Management Act and paragraphs 3.1 to 3.1.16 of the Treasury Regulations The Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with this charter, and has discharged all its responsibilities as contained therein.
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4. The Effectiveness of Internal Control In line with the Public Finance Management Act of 1999, internal audit provides the audit committee and management with assurance that the internal controls are appropriate and effective. This is achieved by evaluating internal controls to determine their effectiveness and efficiency, and by developing recommendations for enhancement or improvement. The Accounting Officer retains responsibility for implementing such recommendations as per Treasury Regulation 3.1.12. From the various reports of the internal auditors and audit report of AGSA it was noted that matters were reported indicating material deficiencies in the system of internal controls in areas pertaining to financial reporting, reporting on pre-determined objectives, Irregular, Fruitless And Wasteful Expenditure (relating to the condonation of previously identified balances), compliance with laws and regulations, continuous improvement on the Implementation of strategies by the Department to curb the initiation school deaths, continuous support to municipalities to improve audit outcomes and challenges confronting the merged municipalities. The Audit Committee has drawn the attention of management to issues that have been raised in the previous year audit report and management report of the Auditor General as well as matters raised in the reports of internal audit in the current financial year. Based on our interaction with the department we conclude that the audit action plan management system, has not been implemented adequately and effectively to address internal and external audit findings. Management have expressed their commitment in dealing with these issues. Through our analysis of audit reports and engagement with the Department we can report that the system on internal control for the period under review was not adequate and effective. The Audit Committee remains concerned with the slow progress in the finalization of irregular, fruitless and wasteful expenditure. The current status of implementation of the guideline(s) as issued by National Treasury to resolve irregular, fruitless and wasteful expenditure is inadequate.
5. Risk Management
Based on the quarterly reviews performed by the Risk Management Unit, the departmental fraud and risk management system is not adequate and effective. An improvement in the implementation of the risk management process in the Department is required as the current environment will impact service delivery negatively.
6. In-Year Monitoring and Monthly/Quarterly Report The department has been reporting monthly and quarterly to the Treasury as is required by the PFMA. The Audit Committee has noted the content and quality of the monthly / quarterly financial reports prepared and issued by the Department during the year under review, in compliance with the statutory reporting framework. The Committee raised concerns with management in respect of, amongst others, the quality of quarterly performance reports submitted for review.
7. Evaluation of Financial Statements
The Audit Committee has reviewed and discussed the audited annual financial statements for the 2017/18 financial year with management. This process included a review of the audit comments and the management letter.
8. Evaluation of Annual Report The Audit Committee reviewed and discussed the audited performance information for the 2017/18 financial year and the related audit comments with the Auditor General South Africa and the Accounting Officer.
The late submission of the draft annual report for review by internal audit and the Audit Committee negatively impact on the functioning of the committee.
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9. Compliance with laws and regulations
The Audit Committee has reviewed and discussed the department’s compliance with legal and regulatory provisions for the 2017/18 financial year with management. The Audit Committee is concerned with the status of compliance with laws and regulations. If the department does not implement an adequate and effective compliance framework and system, non-compliance and irregular expenditure and fruitless and wasteful will continue to occur.
10 Internal Audit The accounting officer is obliged, in terms of the Public Finance Management Act, 1999, to ensure that the entity has an effective system of internal audit under the control and direction of the Audit Committee. The Audit Committee is satisfied that the internal audit function has properly discharged its functions and responsibilities during the year under review, however was concerned about the financial allocation to the internal audit activity which may compromise the effectiveness if not properly reviewed. The Internal Audit has provided good support to the Audit Committee and management throughout the year
The Audit Committee also notes that the deficiencies in the risk management system mentioned above impact on the implementation of the risk based audit approach.
The Audit Committee is satisfied that the internal audit function maintains an effective internal quality assurance programme that covers all aspects of the internal audit activity.
11. Auditor General’s Report We have reviewed the department’s implementation plan for audit issues raised in the previous year and based on the interaction with the department and the internal audit reports, the committee is not satisfied that all matters have been adequately addressed.
12. Corporate Governance We are of the opinion that the department continues to strive towards complying with sound principles of corporate governance as per the PFMA and King IV recommendations on corporate governance. The Department is in the process of developing the Combined Assurance model, which is expected to be implemented during the 2018/19 financial year. 13. Appreciation The Audit Committee expresses its sincere appreciation to the Honourable Member of the Executive Council, Head of Department, the Management of the Department, Internal Audit and the AGSA for their support and co-operation during the year under review.
_________________ Nokutemba Mtebele Chairperson of the Audit Committee Department of Cooperative Governance and Traditional Affairs 31 July 2018
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4.1 INTRODUCTION
4.1.1 The status of human capital in the department
The Human Resources are the most important asset of the Department, because it is the centre of the performance of the Department and the Department relies on competencies and skills of its workforce for it to achieve its strategic objectives.
The Department, in its endeavor to keep up with the expected service delivery priorities, has embarked, inter-alia, in the following human resource initiatives:
Training and development initiatives which include bursary programmes, induction and internship; Employee health and wellness services; Provision of conditions of service; Recruitment of employees both internally and externally; Development of HR delegations in terms of Public Service Regulations of 2016; Development of HR policies and Performance management and development programmes
4.1.2 Human resource priorities for the year under review and their impact
HR PRIORITIES IMPACT OF THESE PRIORITIES Recruitment and Selection An extensive recruitment and selection process was undertaken
during the 2017/18 financial year due to the high vacancy rate the department experienced. A total of 118 posts were advertised and 73 posts were filled. The vacancy rate was reduced.
Population of District Support Centres The District Coordinators have been appointed and the process of decentralization of staff has been commenced with the participation of the District Coordinators.
Counselling cases conducted on referred cases as well as full implementation of grievances and misconduct
The Department intervened successfully through Employee Wellness Programme. There are no backlogs in terms of grievances, except one (1) misconduct case.
Training and Development of Employees A total number of 85 females and 82 males were trained during 2017/18. Induction of new appointees was done to acquaint employees with their jobs.
Full implementation of Performance Management and Development System and it maintenance.
The Department was able to track the employee performance and reward performance.
Employment Equity The Department improved its equity position although it still needs to improve at SMS level.
HR Information Management The Department is managing information in ensuring a data integrity between registry and PERSAL.
Succession Planning There was more focus on the training and development of lower and middle level employees.
4.1.3 Workforce planning and key strategies to attract and recruit a skilled and capable workforce
The Annual Recruitment Plan was developed and implemented. Job specifications were developed to guide filling of vacancies. The provision of conditions of services was done faster. Competent leadership with requisite management skills was appointed. The Recruitment Policy was reviewed to target skilled job applicants.
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4.1.4 Employee performance management
The Performance Management Development System which plays a major role in ensuring that work done by employees based on their Operational Plans is assessed quarterly and annually and where gaps are identified, remedial plans are implemented. The performance management in the year under review was done and good performers were rewarded. 4.1.5 Employee wellness programmes
The Department in its implementation of the Employee Wellness Programme is guided by the implementation of four (4) pillars as determined by DPSA, namely: HIV& Aids and TB Management pillars Health and Productivity Management Pillars Safety, Health, Environment, Risk and Quality Management Pillars Wellness Management Pillar 4.1.6 Highlights achievements and challenges faced by the department, as well as future human resource plans/goals
Human resource plans/goals
The following have been achieved by the Department: Reviewed HR Delegations Recruitment Selection and on-boarding policy review Bursary, Internship and Training & Development Establishment of Decentralisation Project Steering Committee and preparation
Future HR plans /goals The Human Resource function will provide support in the: Decentralization of functions to district level, Resourcing of line functions and district offices, Capacity development initiatives, Job evaluation
Challenges faced by the Department: The challenges regarding the Human Resource functions: Centralisation of Persal functions to Provincial Treasury Centralisation of recruitment to Office of the Premier
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4.2 HUMAN RESOURCES OVERSIGHT STATISTICS 4.2.1 Personnel related expenditure The following tables in the next page summarize the final audited personnel related expenditure by programme (Table 4.2.1.1) and by salary bands (Table 4.2.1.2). In particular, it provides an indication of the amounts spent on personnel. Table 4.2.1.1 Personnel expenditure by programme for the period 1 April 2017 to 31 March 2018
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 243 428 159 471 1 268 - 65.5% 57 Local Governance 295 494 197 906 - - 66.9% 71
Development and Planning
192 863 87 726 - - 45.5% 31
Traditional Institutional Management
322 272 299 192 - - 92.8% 107
House of Traditional Leaders
29 928 19 060 - - 63.7% 7
Total as on Financial Systems (BAS)
1 083 985 763 355 1 268 - 70.4% 273
Table 4.2.1.2 Personnel costs by salary band for the period 1 April 2017 to 31 March 2018
Salary band Personnel expenditure (R’000)
% of total personnel cost
No of employees Average personnel cost per employee
Lower skilled (Levels 1-2) 126 418 16% 1 132 111 677 Skilled (Levels 3-5) 21 219 2.7% 69 307 522 Highly skilled production (Levels 6-8)
366 219 48% 1 251 297 741
Highly skilled supervision (Levels 9-12)
170 869 22% 256 667 457
Senior management (Levels 13-16)
70 207 9% 65 1 080 108
Contract (Levels 3-5) 251 0% 1 251 000
Contract (Levels 6-8) 686 0% 2 343 000 Contract (Levels 9-12) 2 216 0.3% 2 1 108 000 Contract (Levels 13-16) 4 268 0.5% 4 1 067 000 Contract other 559 0.% 0 559 000 IInkosana /Headmen 443 0.% 16 27 688 TOTAL 763 355 98,5% 2 781 274 489
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Table 4.2.1.3 Salaries, Overtime, Home Owners Allowances and Medical Aid by programme for the period 1 April 2017 to 31 March 2018
Programme Salaries Overtime Home owners Allowance (HOA)
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 Administration 131 138 80.80% 1 531 0% 4 251 2.60% 5 956 3.70%
Local Governance
159 065 78.60% - 0% 7 479 3.70% 13 277 6.60%
Development and Planning
75 712 80.30% 5 0,3% 2 056 2.20% 2 411 2.60%
Traditional Institutional Management
277 977 90.90% 11 0,7% 3 925 1.30% 7 159 2.30%
House of Traditional Leaders
15 932 79.70% 15 0.10% 576 2.90% 967 4.80%
Total 659824 84.10% 1 563 0.20% 18 286 2.30% 29 771 3.80% Note: Salaries, overtime, housing allowance and medical assistance are calculated as a % of the total personnel expenditure which appears in Table 4.2.1.2 above
Table 4.2.1.4 Salaries, Overtime, Home Owners Allowances and Medical Aid by salary band for the period 1 April 2017 to 31 March 2018
Salary band Salaries Overtime Home owners Allowance (HOA)
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)
126 182 99.50% - 0% 12 0.00% 20 0%
Skilled (Levels 3-5)
16 277 76.70% 15 0.10% 996 4.70% 1 455 6.90%
Highly skilled production (Levels 6-8)
302 358 80.50% 1 195 0.30% 12 960 3.50% 23 173 6.20%
Highly skilled supervision (Levels 9-12)
144 990 81.20% 344 0.20% 2 760 1.50% 4 467 2.50%
Senior Management (Levels 13-16)
62 634 84.20% - 0% 1 348 1.80% 644 0.90%
Contract (Levels 3-5)
212 84.50% - 0% 15 6.00% - 0%
Contract (Levels 6-8)
591 86.20% - 0% 30 4.40% - 0%
Contract (Levels 9-12)
1 908 81.50% - 0% 36 1.50% 1 0%
Contract (Levels 13-16)
3 680 82.00% - 0% 129 2.90% 11 0.20%
Contract other 550 97.30% 9 1.60% - 0% - 0% Inkosana / Headmen
443 99.10% - 0% - 0% - 0%
Total 659 825 84.10% 1 563 0.20% 18 286 2.30% 29 771 3.80%
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4.2.2 Employment and Vacancies The tables in this section summarise the position with regards to employment and vacancies. The tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there were any staff that were additional to the staff establishment. This information is presented in terms of three key variables namely programme, salary band and critical occupations. Table 4.2.2.1 (a) Employment and vacancies by programme as on 31 March 2018
Programme Number of posts on approved
establishment
Number of posts filled
Vacancy Rate in
percentage
Number of Employees additional to the
staff establishment Administration 396 322 18.70% 0 Developmental Local Government 659 626 5% 0 Development and Planning 185 139 24.86% 0 Traditional Institutional Management 1 713 1 650 3.68% 0 House of Traditional Leaders 49 44 10.20% 0 Total 3 002 2 781 7.36% 0
Table 4.2.2.1 (b) Funded Employment and vacancies by programme as on 31 March 2018
Programme Total number of funded posts
Number of posts filled
% of funded posts filled
Total number of funded
posts vacant
% of funded posts vacant
Administration 338 322 95% 16 5% Developmental Local Government 626 626 100% 0 0% Development and Planning 139 139 100% 0 0% Traditional Institutional Management 1 651 1 650 99.9% 1 0.1% House of Traditional Leaders 44 44 100% 0 0% Total 2 798 2 781 99.4% 17 0.6%
Table 4.2.2.2 Employment and vacancies by salary band as on 31 March 2018
Salary band Number of posts on approved
establishment
Number of posts filled
Vacancy Rate in
percentage
Number of Employees additional to the staff
establishment Lower skilled (Levels 1-2) 1 148 1 128 1.40% 0
Skilled (Levels 3-5) 96 69 28.10% 0
Highly skilled production (Levels 6-8) 1 332 1 254 5.90% 0
Highly skilled supervision (Levels 9-12) 344 256 25.60% 0
Senior management (Levels 13-16) 73 65 11.00% 0
Contract (Levels 3-5) 1 1 0% 0
Contract (Levels 6-8) 2 2 0% 0
Contract (Levels 9-12) 2 2 0% 0
Contract (Levels 13-16) 4 4 0% 0
Total 3 002 2 781 7.20% 0 Note: The information in each case reflects the situation as at 31 March 2018. For an indication of changes in staffing patterns over the year under review, please refer to section 4.2.5 of this Annual Report.
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Included in the above total number of filled posts is 1 342 Traditional Leaders. Refer below
Post description Number of posts on Kings 6
Senior Traditional Leaders/ Chiefs 204
Headmen/ Iinkosana 1 132
Total 1 342 Table 4.2.2.3 Employment and vacancies by critical posts as on 31 March 2018
Critical occupation Number of posts on approved
establishment
Number of posts filled
Vacancy Rate in
percentage
Number of Employees
additional to the staff establishment
Finance and Economics Related, Permanent 11 9 18.20% 0
Financial and Related Professionals, Permanent 48 35 27.10% 0
Financial Clerks and Credit Controllers, Permanent 14 8 42.90% 0
General Legal Administration and Related. Professionals, Permanent
1 1 0% 0
Geologists Geophysicists Hydrologists and Related Professionals, Permanent
5 4 20.00% 0
Human Resources and Organizational Development and Related Professionals, Permanent
3 3 0% 0
Human Resources Clerks , Permanent 29 28 3.40% 0
Human Resources, Permanent 29 24 17.20% 0
Legal Related, Permanent 2 1 50.00% 0
Library Mail and Related Clerks, Permanent 6 4 33.30% 0
Light Vehicle Drivers, Permanent 8 6 25.00% 0
Logistical Support Personnel, Permanent 14 8 42.90% 0
Material-Recording and Transport Clerks, Permanent
1 0 100.00% 0
Messengers Porters and Deliverers, Permanent 26 24 7.70% 0
Other Administrative and Related Clerks and Organizers, Permanent
31 28 9.70% 0
Other Administrative Policy and Related Officers, Permanent
25 19 24.00% 0
Other Occupations, Permanent 1 358 1 338 1.47% 0
Risk Management and Security Services, Permanent
13 12 7.70% 0
Secretaries and Other Keyboard Operating Clerks, Permanent
222 203 8.60% 0
Senior Managers, Permanent 65 57 12.30% 0
TOTAL 3 002 2 781 7.36% 0 4.2.3 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.
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Table 4.2.3.1 SMS post information as on 31 March 2018 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 Salary level 16
1 1 100% 0 0
Salary level 15 3 3 100% 0 0 Salary level 14 11 9 81.82% 2 18.18% Salary level 13 47 44 93.62% 3 6.38% Total 62 57 91.94% 5 8.06%
Table 4.2.3.2 SMS post information as on 30 September 2017
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 Salary level 16
1 1 100% 0 0
Salary level 15 3 3 100% 0 0
Salary level 14 11 11 100% 0 0
Salary level 13 47 44 93.62% 3 6.38%
Total 62 59 95.16% 3 4.84%
Table 4.2.3.3 Advertising and filling of SMS posts for the period 1 April 2017 to 31 March 2018
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 Salary level 16 1 1 100% 0 0
Salary level 15 0 0 0 0 0 Salary level 14 5 3 60% 2 40% Salary level 13 10 7 70% 3 30% Total 16 11 68.75% 5 31.25%
Table 4.2.3.4 Disciplinary steps taken for not complying with the prescribed timeframes for filling SMS posts within 12 months for the period 1 April 2017 to 31 March 2018: Reasons for vacancies not advertised within six months: Delays encountered in the processes of approving reviewed structure. Reasons for vacancies not filled within six months: Review of recruitment panels leading to a decision to re advertise.
4.2.4 Job Evaluations Within a nationally determined framework, Executing Authorities may evaluate or re-evaluate any job in his or her institution. 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.
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4.2.4.1 Job evaluation by salary band for the period 1 April 2017 to 31 March 2018
Salary band Number of posts on approved
establishment
Number of Jobs
Evaluated
% of posts evaluated by salary
bands
Posts Upgraded Posts downgraded
Number of posts
% of posts Evaluated
Number % of posts Evaluated
Lower Skilled (Levels 1-2)
1 148 0 0 0 0 0 0
Skilled (Levels 3-5) 96 0 0 0 0 0 0 Highly Skilled Production (Levels 6-8)
1 332 0 0 1 0 0 0
Highly Skilled Supervision (Levels 9-12)
344 0 0 20 0 0 0
Senior Management Service Band A
52 0 0 0 0 0 0
Senior Management Service Band B
17 0 0 0 0 0 0
Senior Management Service Band C
3 0 0 0 0 0 0
Senior Management Service Band D
1 0 0 0 0 0 0
Contract (Levels 3-5) 1 0 0 0 0 0 0 Contract (Levels 6-8) 2 0 0 0 0 0 0 Contract (Levels 9-12) 2 0 0 0 0 0 0 Contract Band A 3 0 0 0 0 0 0 Contract Band D 1 0 0 0 0 0 0 TOTAL 3 002 0 0 0 0 0 0
4.2.4.2 Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2017 to 31 March 2018
Gender African Asian Coloured White Total Female 0 0 0 0 0 Male 0 0 0 0 0 Total 0 0 0 0 0 Employees with a disability 0 0 0 0 0
4.2.4.3 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2017 to 31 March 2018
Gender African Asian Coloured White Total Female 0 0 0 0 0 Male 0 0 0 0 0 Total 0 0 0 0 0 Employees with a Disability 0
4.2.4.4 Employees with salary levels higher than those determined by job evaluation per occupation for the period 1 April 2017 to 31 March 2018
Occupation Number of employees
Job evaluation level
Remuneration level Reason for Deviation
Salary level 1-16 0 0 0 0 Total number of employees whose salaries exceeded the level determined by job evaluation 0 Percentage of total employed 0
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4.2.4.5 Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2017 to 31 March 2018
Gender African Asian Coloured White Total Female 0 0 0 0 0 Male 0 0 0 0 0 Total 0 0 0 0 0 Employees with a disability
0 0 0 0 0
4.2.5 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. 4.2.5.1 Annual turnover rates by salary band for the period 1 April 2017 to 31 March 2018
Salary band Permanent
Number of employees at beginning of
period-1 April 2017
Appointments and transfers
into the Department
Terminations and transfers
out of the Department
Turnover Rate
In percentage
Lower Skilled (Levels 1-2) Permanent 1 136 52 50 4.40% Skilled (Levels 3-5) Permanent 195 11 6 3.10% Highly Skilled Production (Levels 6-8) Permanent
1 104 75 58 5.30%
Highly Skilled Supervision (Levels 9-12) Permanent
236 22 20 8.50%
Senior Management Service Band A Permanent
38 1 2 5.30%
Senior Management Service Band B Permanent
13 5 2 15.40%
Senior Management Service Band C Permanent
3 0 0 0%
Senior Management Service Band D Permanent
1 0 0 0%
Other Permanent 15 0 14 93.30% Contract (Levels 3-5) Permanent 1 0 0 0% Contract (Levels 6-8) Permanent 2 0 0 0% Contract (Levels 9-12) Permanent 3 0 1 33.30% Contract Band A Permanent 4 0 1 25.00% TOTAL 2 751 166 154 5.60%
Note: A transfer is when a Public Service official moves from one Department to another, on the same salary level. Table 4.2.5.2 Annual turnover rates by critical occupation for the period 1 April 2017 to 31 March 2018
Critical occupation Permanent
Number of employees at beginning of
period 1 April 2017
Appointments and transfers
into the Department
Terminations and transfers
out of the Department
Turnover rate in percentage
Administrative Related Permanent 305 33 34 11.10% Appraisers-Valuers and Related Professionals Permanent
1 0 1 100.00%
Architects Town and Traffic Planners Permanent
7 1 1 14.30%
Bus and Heavy Vehicle Drivers Permanent
11 3 1 9.10%
Cartographers and Surveyors Permanent 6 0 1 16.70%
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Critical occupation Permanent
Number of employees at beginning of
period 1 April 2017
Appointments and transfers
into the Department
Terminations and transfers
out of the Department
Turnover rate in percentage
Cleaners in Offices in Workshops Hospitals Permanent
31 4 3 9.70%
Community Development Workers Permanent
538 25 11 2.00%
Engineering Sciences Related Permanent 11 1 0 0% Engineers and Related Professionals Permanent
5 0 0 0%
Finance and Economics Related Permanent
6 1 0 0%
Financial and Related Professionals Permanent
35 1 2 5.70%
Financial Clerks and Credit Controllers Permanent
7 0 0 0%
General Legal Administration and Related Professionals Permanent
1 0 0 0%
Geologists Geophysicists Hydrologists and Related Professionals Permanent
4 0 0 0%
Human Resources and Organizational Development and Related Professionals Permanent
2 0 0 0%
Human Resources Clerks Permanent 29 0 0 0% Human Resources Related Permanent 25 0 1 4.00% Legal Related Permanent 1 0 0 0% Library Mail and Related Clerks Permanent
4 1 0 0%
Light Vehicles Drivers Permanent 7 1 2 28.60% Logistical Support Personnel Permanent 9 1 3 33.30% Material-Recording and Transport Clerks Permanent
1 0 1 100.00%
Messengers Porters and Deliverers Permanent
22 3 1 4.50%
Other Administrative and Related Clerks and Organizers Permanent
30 0 0 0%
Other Administrative Policy and Related Officers Permanent
24 0 2 8.30%
Other Occupations Permanent 1 350 63 76 5.60% Risk Management and Security Services Permanent
13 0 1 7.70%
Secretaries and Other Keyboard Operating Clerks Permanent
218 16 8 3.70%
Senior Managers Permanent 48 12 5 10.40% TOTAL 2 751 166 154 5.60%
Table 4.2.5.3 Reasons why staff left the Department for the period 1 April 2017 to 31 March 2018
Termination Type Number % of Total Resignations
% of Total Employment
Total Employment
Death 40 26% 1.40% 2 785
Resignation 71 46.10% 2.50% 2 785
Expiry of contract 14 9.10% 0.50% 2 785
Discharged due to ill health 1 0.60% 0.00% 2 785
Retirement 28 18.20% 1% 2 785
Total 154 100% 5.50% 2 785 Note: Table 4.2.5.3 identifies the various exit categories for those staff members who have left the employ of the Department.
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Table 4.2.5.4 Promotions by critical occupation for the period 1 April 2017 to 31 March 2018
Occupation Category
Employees 1 April 2017
Promotions to another salary level
Salary level promotions as a
% of employees by
occupation
Progressions to another
notch within a salary level
Notch progression
as a % of employees
by occupation Administrative Related Permanent
305 32 10.49% 228 74.80%
Appraisers-Valuers and Related Professionals Permanent
1 0 0% 0 0%
Architects Town and Traffic Planners Permanent
7 0 0% 3 42.90%
Bus and Heavy Vehicle Drivers Permanent
11 0 0% 7 63.60%
Cartographers and Surveyors Permanent
6 0 0% 5 83.30%
Cleaners in Offices in Workshops Hospitals Permanent
31 0 0% 25 80.60%
Community Development Workers Permanent
538 0 0% 438 81.40%
Engineering Sciences Related Permanent
11 0 0% 10 90.90%
Engineers and Related Professionals Permanent
5 0 0% 2 40%
Finance and Economics Related Permanent
6 4 66.67% 4 66.70%
Financial and Related Professionals Permanent
35 0 0% 28 80%
Financial Clerks and Credit Controllers Permanent
7 0 0% 7 100%
General Legal Administration and Related Professionals Permanent
1 1 100% 0 0%
Geologists Geophysicists Hydrologists and Related Professionals Permanent
4 0 0% 1 25.00%
Human Resources and Organizational Development and Related Professionals Permanent
2 0 0% 2 100%
Human Resources Clerks Permanent
29 0 0% 28 96.60%
Human Resources Related Permanent
25 0 0% 23 92%
Legal Related Permanent 1 0 0% 1 100% Library Mail and Related Clerks Permanent
4 0 0% 1 25%
Light Vehicles Drivers Permanent
7 0 0% 4 57.10%
Logistical Support Personnel Permanent
9 1 11.11% 6 66.70%
Material-Recording and Transport Clerks Permanent
1 0 0% 0 0%
Messengers Porters and Deliverers Permanent
22 0 0% 13 59.10%
Other Administrative and Related Clerks and Organizers Permanent
30 1 3.33% 25 83.30%
Other Administrative Policy and Related Officers Permanent
24 0 0% 17 70.80%
Other Occupations Permanent 1 350 0 0% 0 0%
100
Occupation Category
Employees 1 April 2017
Promotions to another salary level
Salary level promotions as a
% of employees by
occupation
Progressions to another
notch within a salary level
Notch progression
as a % of employees
by occupation Risk Management and Security Services Permanent
13 1 7.69% 11 84.60%
Secretaries and Other Keyboard Operating Clerks Permanent
218 2 0.92% 169 77.50%
Senior Managers Permanent 48 1 2.08% 36 75.00% TOTAL 2 751 43 1.56% 1 094 39.77%
Table 4.2.5.5 Promotions by salary band for the period 1 April 2017 to 31 March 2018
Occupation Category
Employees 1 April 2017
Promotions to another salary level
Salary level promotions as a %
of employees by
occupation
Progressions to another
notch within a salary level
Notch progression
as a % of employees
by occupation Lower Skilled (Levels 1-2), Permanent
1 136 0 0% 0 0%
Skilled (Levels 3-5), Permanent 195 0 0% 44 22.60% Highly Skilled Production (Levels 6-8), Permanent
1 104 16 1.45% 826 74.80%
Highly Skilled Supervision (Levels 9-12), Permanent
236 26 11.02% 182 77.10%
Senior Management (Levels 13-16), Permanent
55 1 1.82% 40 72.70%
Other, Permanent 15 0 0% 0 0% Contract (Levels 3-5), Permanent
1 0 0% 0 0%
Contract (Levels 6-8), Permanent
2 0 0% 1 50%
Contract (Levels 9-12), Permanent
3 0 0% 0 0%
Contract (Levels 13-16), Permanent
4 0 0% 1 25%
TOTAL 2 751 43 1.93% 1 094 39.77% 4.2.6 Employment equity Table 4.2.6.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March 2018 NB.: The above table was done away with by the Department of Labour since 2009, therefore your attention should be drawn to the next table (Employment Equity form EA4 was amended). Table 4.2.6.2 Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2018 Occupational category Permanent
Male Female Total African Coloured Indian White African Coloured Indian White
Top Management, Permanent
3 0 0 0 1 0 0 0 4
Senior Management, Permanent
34 2 0 2 23 0 0 0 61
Professionally qualified and experienced specialists and mid-
127 2 0 3 120 1 0 3 256
101
Occupational category Permanent
Male Female Total African Coloured Indian White African Coloured Indian White
management, Permanent Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent
494 6 0 5 737 10 0 2 1 254
Semi-skilled and discretionary decision making, Permanent
31 2 0 0 36 0 0 0 69
Unskilled and defined decision making, Permanent
927 1 0 0 204 0 0 0 1 132
Contract (Top Management), Permanent
0 0 0 0 1 0 0 0 1
Contract (Senior Management), Permanent
3 0 0 0 0 0 0 0 3
Contract (Professionally Qualified), Permanent
0 0 0 0 2 0 0 0 2
Contract (Skilled Technical), Permanent
1 0 0 0 1 0 0 0 2
Contract (Semi-Skilled), Permanent
1 0 0 0 0 0 0 0 1
TOTAL 1 621 13 0 10 1 125 11 0 5 2 785
Table 4.2.6.3 Recruitment for the period 1 April 2017 to 31 March 2018
Occupational category Permanent
Male Female Total African Coloured Indian White African Coloured Indian White
Senior Management, Permanent
4 0 0 0 1 0 0 0 5
Professionally qualified and experienced specialists and mid-management, Permanent
11 1 0 0 10 0 0 0 22
Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent
32 0 0 0 42 1 0 0 75
Semi-skilled and discretionary decision making, Permanent
6 0 0 0 5 0 0 0 11
Unskilled and defined decision making, Permanent
43 1 0 0 8 0 0 0 52
Contract (Top Management), Permanent
0 0 0 0 1 0 0 0 1
TOTAL 96 2 0 0 67 1 0 0 166 Table 4.2.6.4 Promotions for the period 1 April 2017 to 31 March 2018
Occupational category Permanent
Male Female Total African Coloured Indian White African Coloured Indian White
Top Management, Permanent
0 0 0 0 0 0 0 0 0
Senior Management, Permanent
1 0 0 0 0 0 0 0 1
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Occupational category Permanent
Male Female Total African Coloured Indian White African Coloured Indian White
Professionally qualified and experienced specialists and mid-management, Permanent
8 0 0 0 4 0 0 0 12
Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent
4 0 0 0 12 0 0 0 16
Semi-skilled and discretionary decision making, Permanent
7 0 0 0 5 0 0 0 12
Contract (Senior Management), Permanent
0 0 0 0 0 0 0 0 0
Contract (Skilled technical), Permanent
1 0 0 0 0 0 0 0 1
TOTAL 387 9 0 3 735 8 0 5 1 147 Employees with disabilities
0 0 0 0 1 0 0 0 1
Note: Promotions refer to the total number of employees promoted within the Department, as per Table 4.2.5.5 Table 4.2.6.5 Terminations for the period 1 April 2017 to 31 March 2018
Occupational category Permanent
Male Female Total African Coloured Indian White African Coloured Indian White
Senior Management, Permanent
4 0 0 0 0 0 0 0 4
Professionally qualified and experienced specialists and mid-management, Permanent
9 0 0 1 10 0 0 0 20
Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent
36 0 0 0 22 0 0 0 58
Semi-skilled and discretionary decision making, Permanent
3 1 0 0 2 0 0 0 6
Unskilled and defined decision making, Permanent
43 0 0 0 7 0 0 0 50
Not Available, Permanent 3 0 0 0 11 0 0 0 14 Contract (Senior Management), Permanent
1 0 0 0 0 0 0 0 1
Contract (Professionally qualified), Permanent
1 0 0 0 0 0 0 0 1
TOTAL 100 1 0 1 52 0 0 0 154 Disability staff 2 0 0 0 0 0 0 0 2
Note: Terminations refer to those employees who have left the employ of the Department, including transfers to other Departments, as per Table 4.2.5.1.
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Table 4.2.6.6 Disciplinary action for the period 1 April 2017 to 31 March 2018
Disciplinary Action Male Female Total African Coloured Indian White African Coloured Indian White
4 1 0 0 0 3 0 0 0 Note: The total disciplinary actions refer to formal outcomes. For further information on the outcomes of the disciplinary hearings and types of misconduct addressed at disciplinary hearings, please refer to Tables 4.2.12.2 and 4.2.12.3. Table 4.2.6.7 Skills development for the period 1 April 2017 to 31 March 2018
Occupational category Permanent
Male Female Total African Coloured Indian White African Coloured Indian White
Legislators, Senior Officials and Managers 50 1 0 1 29 0 0 0 81
Professionals 11 0 0 0 30 0 0 0 41
Total 61 1 0 1 59 0 0 0 122 Employees with disabilities 1 0 0 0 0 0 0 0 1
Note: The above table refers to the total number of personnel who received training, and not the number of training courses attended by individuals. For further information on the actual training provided, please refer to Table 4.2.13.2. 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 under. 4.2.7 Signing of performance agreements by SMS members Table 4.2.7.1 Signing of Performance Agreements by SMS members as on 31 May 2017
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
Salary level 16 0 0 0 0
Salary level 15 3 3 3 100%
Salary level 14 11 11 11 100%
Salary level 13 47 41 41 100%
Total 61 55 55 100% Note: The allocation of performance-related rewards (cash bonus) for Senior Management Service members is dealt with later in the report. Please refer to Table 4.2.8.4. Table 4.2.7.2 Reasons for not having concluded Performance Agreements for all SMS members as on 31 May 2017
All performance agreements were concluded
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4.2.8 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. Table 4.2.8.1 Performance Rewards by race and gender for the period 1 April 2017 to 31 March 2018
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 617 1 112 55.50% 4 303.97 6 976. African, Male 297 1 600 18.60% 2 361.66 7 952 Asian, Female 0 0 0.00% 0.00 0 Asian, Male 0 0 0.00% 0.00 0 Coloured, Female 8 11 72.70% 63.53 7 941 Coloured, Male 6 13 46.20% 43.31 7 218 White, Female 5 5 100.00% 40.20 8 040 White, Male 5 10 50.00% 45.06 9 013 Total 960 2 785 34.50% 6 993.47 7 285
Table 4.2.8.2 Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2017 to 31 March 2018
Salary band Beneficiary Profile Cost Number of
beneficiaries Number of employees
% of total within group
Total Cost (R’000)
Average cost per employee
Lower Skilled (Levels 1-2) 0 1 132 0.00% 0 0 Skilled (Levels 3-5) 54 69 78.30% 244.91 4 535 Highly Skilled Production (Levels 6-8)
705 1 254 56.20% 4 511.43 6 399
Highly Skilled Supervision (Levels 9-12)
194 256 75.80% 2 128.66 10 972
Contract (Levels 3-5) 0 1 0% 0 0 Contract (Levels 6-8) 2 2 100% 13.89 6 947 Contract (Levels 9-12) 0 2 0% 0 0 TOTAL 955 2 716 35.20% 6 898.89 7 224
Note: Cost is calculated as a percentage of the total personnel expenditure for salary levels 1-12, reflected in Table 4.2.1.2. Table 4.2.8.3 Performance Rewards by critical occupation for the period 1 April 2017 to 31 March 2018
Salary band Beneficiary Profile Costs Number of
beneficiaries Number of employees
% of total within
occupation
Total Cost (R’000)
Average cost per
employee Financial Clerks and Credit Controllers
8 8 100.00% 58.04 7 255
Human Resources Clerks 26 28 92.90% 172.10 6 619 Geologists Geophysicists Hydrologists and Related Professionals Permanent
4 4 100% 48.77 12 192
Human Resources and Organizational Development and Related Professionals Permanent
2 3 66.70% 30.85 15 424
Messengers Porters and Deliverers 18 24 75% 80.46 4 470 Risk Management and Security Services Permanent
6 12 50% 54.20 9 033
Logistical Support Personnel 7 8 87.50% 60.95 8 707 Finance and Economics Related 6 9 66.70% 57.22 9 537
105
Salary band Beneficiary Profile Costs Number of
beneficiaries Number of employees
% of total within
occupation
Total Cost (R’000)
Average cost per
employee Other Administrative and Related Clerks and Organizers Permanent
27 28 96.40% 172.05 6 372
Appraisers-Valuers and Related Professionals
1 1 100% 14.44 14 438
Other Occupations 0 1 342 0% 0 0 Legal Related 1 1 100% 17.18 17 182 Financial and Related Professionals
32 35 91.40% 273.28 8 540
Architects Town and Traffic Planners
5 7 71.40% 63.61 12 723
Administrative Related 268 338 79.30% 2 397.20 8 945 Secretaries and other Keyboard Operating Clerks
182 203 89.70% 1 123.19 6 171
Library Mail and Related Clerks 3 4 75.00% 17.87 5 957 Cleaners in Offices Workshops Hospitals
28 31 90.30% 123.63 4 415
Human Resources Related 20 24 83.30% 227.80 11 390 General L Legal Administration and Related Professionals
1 1 100% 8.45 8 452
Other Administrative Policy and Related Officers
18 19 95% 178.96 8 522
Bus and Heavy Vehicle Drivers 9 12 75% 48.53 5 392 Senior Managers 4 57 7,02% 94.57 18 914 Engineers and Related Professionals
2 5 40% 32.15 16 077
Cartographers and Surveyors 4 5 80% 37.51 9 378 Light Vehicle Drivers 6 6 100% 31.76 5 293 Engineering Sciences Related 7 12 58.30% 87.09 12 442 Community Development Workers 265 558 47.50% 1 570.30 5 926 Total 960 2 785 34.50% 6 993.47 7 285
Table 4.2.8.4 Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2017 to 31 March 2018
Salary band Beneficiary Profile Cost % of SMS wage bill Number of
beneficiaries Number of employees
% of total within group
Total Cost (R’000)
Average cost per
employee Level 13 5 49 10.20% 94.57 18 914.50 0.20% Level 14 0 15 0 0 0 0 Level 15 0 3 0 0 0 0 Level 16 0 2 0 0 0 0 Total 5 69 7.20% 94.57 18 914.50 0.10%
Note: Cost is calculated as a percentage of the total personnel expenditure for salary levels 13-16, reflected in Table 4.2.1.2. The MEC is disclosed under level 16. 4.2.9 Foreign workers The tables below summarise the employment of foreign nationals in the Department in terms of salary band and major occupation.
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Table 4.2.9.1. Foreign workers by salary band for the period 1 April 2017 to 31 March 2018
Salary band 01 April 2017 31 March 2018 Change Number % of total Number % of total Number % Change
Lower skilled (Levels 1-2) 1 33.30% 1 33.30% 0 0 Contract (Levels 9-12) 1 33.30% 1 33.30% 0 0 Contract (Levels 13-16) 1 33.30% 1 33.30% 0 0 Total 3 100% 3 100% 0 0
Table 4.2.9.2. Foreign workers by major occupation for the period 1 April 2017 to 31 March 2018
Salary band 01 April 2017 31 March 2018 Change Number % of total Number % of total Number % Change
Other occupations 1 33.30% 1 33.30% 0 0
Professionals and managers 2 66.70% 2 66.70% 0 0
Total 3 100% 3 100% 0 0 4.2.10 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 4.2.10.1 Sick leave for the period 1 January 2017 to 31 December 2017 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)
Lower Skilled (Levels 1-2) 7 100% 2 0.30% 4 4 Skilled (Levels 3-5) 512 88.90% 56 9.30% 9 320 Highly skilled production (Levels 6-8)
2 512 82.10% 302 50.30% 8 3 244
Highly skilled supervision (Levels 9-12)
1 331 76.60% 189 31.50% 7 3 501
Senior management (Levels 13-16)
250 88.80% 33 5.50% 8 985
Contract (Levels 6-8) 19 100% 1 0.20% 8 3 244 Contract (Levels 9-12) 4 75% 2 0.30% 7 3 501 Contract (Levels 13-16) 16 87.50% 2 0.30% 8 59 Total 4 651 81.50% 587 100% 8 8 165
Table 4.2.10.2 Disability leave (temporary and permanent) for the period 1 January 2017 to 31 December 2017
Salary band Total days % Days with medical
certification
Number of employees
using disability
% of total employees
using disability
Average days per employee
Estimated cost
(R’000)
Highly skilled production (Levels 6-8)
557 100% 11 57.90% 51 867
Highly skilled supervision (Levels 9-12)
188 100% 7 36.80% 27 605
Senior management (Levels 13-16)
32 100% 1 5.30% 32 127
Total 777 100% 19 100% 41 1 599
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Table 4.2.10.3 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 4.2.10.3 Annual Leave for the period 1 January 2017 to 31 December 2017
Salary band Total days taken Average per employee Number of employees using annual leave
Lower skilled (Levels 1-2) 10 2 5 Skilled (Levels 3-5) 1 440 15 95 Highly skilled production (Levels 6-8) 16 494 16 1 021 Highly skilled supervision (Levels 9-12) 5 699 21 266 Senior management (Levels 13-16) 1 220 20 62 Contract Other 306 8 39 Contract (Levels 3-5) 6 6 1 Contract (Levels 6-8) 33 17 2 Contract (Levels 9-12) 26 9 3 Contract (Levels 13-16) 72 18 4 Total 25 306 17 1 498
Table 4.2.10.4 Capped leave for the period 1 January 2017 to 31 December 2017
Salary band Total days of capped
leave taken
Number of employees
using capped leave
Average number of
days taken per employee
Average capped leave per
employee as on 31 December 2017
Lower skilled level 1-2 0 0 0 113 Skilled level 3-5 1 1 1 63 Highly skilled production (Levels 6-8) 6 1 6 86
Highly skilled supervision (Levels 9-12) 51 5 10 112 Senior management (Levels 13-16) 0 0 0 94 Total 58 7 8 95
The following table summarises payments made to employees as a result of leave that was not taken. Table 4.2.10.5 Leave pay-outs for the period 1 April 2017 to 31 March 2018
Reason Total amount (R’000)
Number of employees
Average per Employee (R’000)
Capped leave payouts on termination of service for current financial year 5 285 56 94 375
Current leave payout on termination of service for current financial year 161 4 40 250
Total 5 446 60 90 767 4.2.11 HIV/AIDS & Health Promotion Programmes Table 4.2.11.1 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
Traditional Leaders. Awareness Sessions
Community Development Workers and Field Workers. Awareness Sessions
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Table 4.2.11.2 Details of Health Promotion and HIV/AIDS Programmes
Question Yes No Details, if yes 1. Has the Department designated a member of the SMS to implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position.
Yes Mr. M Madikane Senior Manager: Employee Relations
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.
Yes The Employee Wellness Unit has 4 employees and the budget for 2017/18 was R714 000.
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.
Yes The Unit focuses on the four functional pillars as per the DPSA strategic framework on EH&W namely:
1. HIV&AIDS and TB Management Pillar
2. Health and Productivity Management Pillar. 3. Safety, Health, Environment, Risk and Quality Management Pillar. 4. Wellness Management Pillar
4. Has the Department established (a) committee(s) as contemplated in Part VI E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent.
Yes The committee was appointed and awaiting training. The names are as follows: 1. Mr. Z Gxekani (Community Development Worker Nelson Mandela Metro) 2. Ms. K Makeng (Traditional Affairs, Alfred Nzo) 3. Mzileni N (PMDS, Head Office) 4. Ms. TE Mpongoma (Secretary to Traditional Leaders, OR Tambo) 5. Mr. P January (Community Development Worker Cacadu Region)
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.
Yes 1) HIV and AIDS policy 2) Wellness Management policy 3) SHERQ Management policy
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.
Yes 1) Confidentiality of employees HIV status is respected. 2) Discrimination on the basis of HIV status is condemned 3) HIV therapeutic and support services is provided by EWP 4) Grievances related to HIV and AIDS are handled according to the departmental policy on complaints and grievances.
7. Does the Department encourage its employees to undergo Voluntary Counselling and Testing? If so, list the results that you have you achieved.
Yes HCT forms part of information sessions. 91 employees volunteered to test for HIV.
8. Has the Department developed measures / indicators to monitor and evaluate the impact of its health promotion programme? If so, list these measures/indicators.
Yes Verbal feedback and evaluation at the end of the financial year. Number of sessions conducted and number of employees utilising the programme.
The following table summarises the outcome of disciplinary hearings conducted within the Department for the year under review. 4.2.12 Labour Relations Table 4.2.12.1 Collective agreements for the period 1 April 2017 to 31 March 2018 Note: The collective agreements are not entered into with at Departmental level. This is a National and Provincial competency.
109
Table 4.2.12.2 Misconduct and disciplinary hearings finalised for the period 1 April 2017 to 31 March 2018
Outcomes of disciplinary hearings Number % of total Finalized 2 50%
Pending 2 50%
Total 4 100% Table 4.2.12.3 Types of misconduct addressed at disciplinary hearings for the period 1 April 2017 and 31 March 2018
Type of misconduct Number % of total Fraud 2 40%
Insolent behaviour 1 20%
Wasteful and Irregular Expenditure 2 40%
Total 5 100% Table 4.2.12.4 Grievances logged for the period 1 April 2017 to 31 March 2018
Grievances Number % of total Unfair treatment 3 10% ssNon-appointment 11 36,6% Non-payment of PMDS 12 40% Victimization 2 6,7% Unfair Labour Practice 2 6,7% Total 30 100%
Table 4.2.12.5 Disputes logged with Councils for the period 1 April 2017 to 31 March 2018
Disputes Number % of total Upheld 4 33.3% Dismissed 8 66.7% Total 12 100%
Table 4.2.12.6 Strike actions for the period 1 April 2017 to 31 March 2018
Total number of persons working days lost 0 Total costs working days lost 0 Amount recovered as a result of no work no pay (R000) 0
Table 4.2.12.7 Precautionary suspensions for the period 1 April 2017 to 31 March 2018
Number of people suspended 6 Number of people whose suspension exceeded 30 days 6 Average number of days suspended 210 Cost of suspension (R000) R1 456 042.10
110
4.2.13 Skills development 4.2.13.1 Skills development for the period 1 April 2017 to 31 March 2018
Occupational category
Gender Number of employees
as at 1 April 2017
Training needs identified at start of the reporting period
Learner ships
Skills Programmes and other short
courses
Other forms of training
Total
Legislators, senior officials and managers
Female 104 0 29 3 32
Male 107 0 52 7 59
Professionals Female 7 0 31 13 44
Male 17 0 11 7 18
Technicians and associate professionals
Female 886 0 22 13 35
Male 475 0 17 6 23
Clerks Female 20 0 3 11 14
Male 16 0 1 3 4
Plant and machine operators and assemblers
Female 0 0 0 0 0
Male 0 0 1 0 1
Elementary occupations Female 0 0 1 11 12
Male 0 0 0 1 1
Other Female 189 0 0 0 0
Male 930 0 0 0 0
Sub Total Female 1 206 0 0 0 0
Male 1 545 0 0 0 0
Total 2 751 0 168 75 243
Table 4.2.13.2 Training provided for the period 1 April 2017 to 31 March 2018
Occupational category
Gender Number of employees
as at 1 April 2017
Training needs identified at start of the reporting period
Learner ships
Skills Programmes and other short
courses
Other forms of training
Total
Legislators, senior officials and managers
Female 104 0 4 3 7 Male 107 0 5 9 14
Professionals Female 7 0 0 2 2 Male 17 0 1 0 1
Technicians and associate professionals
Female 886 0 2 6 8 Male 475 0 1 5 6
Clerks Female 20 0 6 2 8 Male 16 0 0 0 0
Other Female 0 0 0 36 36 Male 0 0 0 8 8
Plant and machine operators and assemblers
Female 0 0 0 0 0 Male 0 0 0 0 0
Elementary occupations Female 189 0 0 0 0 Male 930 0 0 0 0
Sub Total Female 1 206 0 12 49 61 Male 1 545 0 7 22 29
Total 2 751 0 38 142 180
111
4.2.14 Injury on duty The following tables provide basic information on injury on duty. Table 4.2.14.1 Injury on duty for the period 1 April 2017 to 31 March 2018
Nature of injury on duty Number % of total Required basic medical attention only 9 0.3% Total 9 0.3%
4.2.15 Utilisation of Consultants The following tables relate 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: (a) The rendering of expert advice;
(b) The drafting of proposals for the execution of specific tasks; and
(c) The execution of a specific task which is of a technical or intellectual nature, but excludes an employee of a
Department.
Table 4.2.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2017 to 31 March 2018 No Project title Total number of
consultants that worked on project
Duration Contract value in Rand
1. Tshani Consulting CC Appointment of a Service Provider to review and develop an Eastern Cape Provincial Spatial Development Framework (PSDF) SCMU7-16/17-0001
10 21/11/2016- 20/11/2017
R 1 994 110.80
2. Dimension Data Pty Ltd Appointment of a Service Provider to provide ICT professional services. SCMU7-16/17-0004
2 01/04/2017-31/03/2018
R 146 045.40
3. Mosaic Marketing Training Coaching Appointment of a Service Provider to provide training on Life Skills for 14 Departmental employees. SCMU7-17/18-0016
1 06/03/2018- 08/03/2018
R 53 000.00
4. Mosaic Marketing Training Coaching Appointment of a Service Provider to provide Problem Solving Skills for 15 Departmental employees. SCMU7-17/18-0017
1 27/02/2018 - 01/03/2018
R 54 900.00
Total number of
projects Total individual
consultants Total contract value in Rand
4 14 R 2 267 075.84 Table 4.2.15.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2017 and 31 March 2018 No Project title Percentage
ownership by HDI groups
Percentage management
by HDI groups
Number of consultants from HDI groups that worked on the project
1. Tshani Consulting CC Appointment of a Service Provider to review
100% 100% 80%
112
No Project title Percentage ownership by HDI groups
Percentage management
by HDI groups
Number of consultants from HDI groups that worked on the project
and develop an Eastern Cape Provincial Spatial Development Framework (PSDF) SCMU7-16/17-0001
2. Dimension Data Pty Ltd Appointment of a Service Provider to provide ICT professional services. SCMU7-16/17-0004
25.63% 40% 10%
3. Mosaic Marketing Training Coaching Appointment of a Service Provider to provide training on Life Skills for 14 Departmental employees. SCMU7-17/18-0016
0% 0% 0%
4. Mosaic Marketing Training Coaching Appointment of a Service Provider to provide Problem Solving Skills for 15 Departmental employees. SCMU7-17/18-0017
0% 0% 0%
Table 4.2.15.3 Report on consultant appointments using Donor funds for the period 1 April 2017 to 31 March 2018 Nil Table 4.2.15.4 Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2017 to 31 March 2018 Nil 4.2.16 Severance Packages
Table 4.2.16.1 Granting of employee initiated severance packages for the period 1 April 2017 to 31 March 2018
Salary band Number of applications
received
Number of applications
referred to the MPSA
Number of applications supported by
MPSA
Number of packages
approved by Department
Lower skilled (Levels 1-2) 0 0 0 0 Skilled (Levels 3-5) 0 0 0 0 Highly skilled production (Levels 6-8) 0 0 0 0 Highly skilled supervision (Levels 9-12) 0 0 0 0 Senior Management (Levels 1316) 0 0 0 0 Total 0 0 0 0
113
5.1 REPORT OF THE AUDITOR-GENERAL TO THE EASTERN CAPE PROVINCIAL LEGISLATURE ON VOTE NO 7. DEPARTMENT
128-197
116
199-205
117
37 - 42
43 - 48
49 - 52
118
119
120
121
33 - 56
122
123
124
125
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
5.2
AN
NU
AL
FIN
AN
CIA
L ST
ATE
MEN
TS
Appr
opria
tion
per p
rogr
amm
e 20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0 Pr
ogra
mm
e
1.
Adm
inis
tratio
n 26
0,40
1 20
0 (1
1,31
5)
249,
286
241,
454
7,83
2 96
,9%
24
3,24
3 23
1,58
8 2.
Lo
cal G
over
nanc
e 27
4,16
0 -
25,0
00
299,
160
295,
492
3,66
8 98
,8%
28
2,38
8 26
7,12
3 3.
De
velo
pmen
t and
Pla
nnin
g 21
3,91
5 -
(16,
570)
19
7,34
5 19
2,86
2 4,
483
97,7
%
147,
717
126,
752
4. T
radi
tiona
l Ins
titut
iona
l M
an.
32
4,42
1 -
2,30
5 32
6,72
6 32
2,27
2 4,
454
98,6
%
305,
547
299,
250
5. H
ouse
of T
radi
tiona
l Lea
ders
29
,386
-
580
29,9
66
29,9
28
38
99,9
%
27,6
11
26,9
18
Subt
otal
1,
102,
283
200
- 1,
102,
483
1,08
2,00
8 20
,475
98
,1%
1,
006,
506
951,
630
Stat
utor
y Ap
prop
riatio
n 2,
182
(200
) -
1,98
2 1,
978
4 99
,8%
1,
971
1,90
2 M
embe
rs' r
emun
erat
ion
2,
182
(200
) -
1,98
2 1,
978
4 99
,8%
1,
971
1,90
2 TO
TAL
1,10
4,46
5 -
- 1,
104,
465
1,08
3,98
6 20
,479
98
,1%
1,
008,
477
95
3,53
2
Reco
ncili
atio
n w
ith s
tate
men
t of f
inan
cial
per
form
ance
ADD
D
epar
tmen
tal r
ecei
pts
205
N
RF
Rec
eipt
s -
Ac
tual
am
ount
s pe
r sta
tem
ent o
f fin
anci
al p
erfo
rman
ce (t
otal
reve
nue)
1,
104,
465
1,
008,
682
AD
D
Pr
ior y
ear u
naut
horis
ed e
xpen
ditu
re a
ppro
ved
with
out f
undi
ng
-
5,
843
Ac
tual
am
ount
s pe
r sta
tem
ent o
f fin
anci
al p
erfo
rman
ce (t
otal
exp
endi
ture
)
1,08
3,98
6
959,
375
128
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
Appr
opria
tion
per e
cono
mic
cla
ssifi
catio
n 20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0 Ec
onom
ic c
lass
ifica
tion
Curre
nt p
aym
ents
89
2,41
2 (5
,737
) (9
,200
) 87
7,47
5 86
4,38
9 13
,806
98
,5%
86
8,03
8 81
6,47
4 Co
mpe
nsat
ion
of e
mpl
oyee
s 77
7,13
8 (5
,878
) (5
,795
) 76
5,46
5 76
3,35
5 2,
110
99,7
%
739,
520
700,
597
Sala
ries
and
wag
es
690,
311
(4,4
89)
(5,0
45)
680,
777
680,
262
515
99,9
%
656,
894
623,
565
Socia
l con
tribu
tions
86
,827
(1
,389
) (7
50)
84,6
88
83,0
93
1,59
5 98
,1%
82
,626
77
,032
G
oods
and
ser
vice
s 11
5,27
4 14
1 (3
,405
) 11
2,01
0 10
1,02
5 10
,985
90
,2%
12
8,51
8 11
5,71
6 Ad
min
istra
tive
fees
72
(3
6)
- 36
14
22
38
,9%
86
67
Ad
verti
sing
2,15
8 (2
63)
- 1,
895
1,77
5 12
0 93
,7%
1,
132
903
Min
or a
sset
s 1,
735
(52)
-
1,68
3 1,
513
170
89,9
%
1,71
5 1,
589
Audi
t cos
ts: E
xter
nal
5,19
5 86
-
5,28
1 5,
281
- 10
0,0%
5,
608
4,97
7 Bu
rsar
ies:
Em
ploy
ees
625
- -
625
356
269
57,0
%
734
624
Cat
erin
g: D
epar
tmen
tal a
ctv
3,84
8 70
-
3,91
8 3,
272
646
83,5
%
2,79
3 2,
511
Com
mun
icatio
n 12
,906
1,
436
(960
) 13
,382
12
,584
79
8 94
,0%
22
,181
21
,991
C
ompu
ter s
ervic
es
5,38
7 -
- 5,
387
5,27
4 11
3 97
,9%
9,
640
9,29
4 C
onsu
ltant
s: B
usin
ess
and
advis
ory
serv
ices
7,92
7 55
1 (9
05)
7,57
3 6,
280
1,29
3 82
,9%
7,
228
5,07
7
Lega
l ser
vices
4,
418
41
- 4,
459
4,44
7 12
99
,7%
12
,549
12
,508
C
ontra
ctor
s 2,
324
41
- 2,
365
2,34
8 17
99
,3%
2,
594
2,28
5 Ag
ency
and
sup
port
/ ou
tsou
rced
se
rvice
s 1,
816
(100
) (4
80)
1,23
6 83
8 39
8 67
,8%
70
61
Ente
rtain
men
t 23
6 (2
) -
234
180
54
76,9
%
233
166
Flee
t ser
vices
(inclu
ding
gov
ernm
ent
mot
or tr
ansp
ort)
4,47
7 35
4 -
4,83
1 4,
831
- 10
0,0%
10
0 69
Con
sum
able
sup
plie
s 1,
085
45
- 1,
130
645
485
57,1
%
6,26
7 5,
845
Con
sum
able
: Sta
tione
ry, p
rintin
g an
d of
fice
supp
lies
2,39
4 (4
66)
- 1,
928
1,59
2 33
6 82
,6%
2,
539
1,98
1
Ope
ratin
g le
ases
4,
500
(392
) -
4,10
8 4,
023
85
97,9
%
5,08
4 4,
862
Prop
erty
pay
men
ts
2,51
8 (1
94)
(240
) 2,
084
1,93
8 14
6 93
,0%
2,
130
1,65
3 Tr
ansp
ort
prov
ided
: D
epar
tmen
tal
activ
ity
168
(6)
- 16
2 16
2 -
100.
0%
5 5
129
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
Appr
opria
tion
per e
cono
mic
cla
ssifi
catio
n 20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0 Tr
avel
and
sub
siste
nce
36,8
75
817
180
37,8
72
33,4
26
4,44
6 88
,3%
33
,271
29
,498
Tr
aini
ng a
nd d
evel
opm
ent
2,23
4 (5
87)
- 1,
647
1,26
8 37
9 77
,0%
2,
082
1,40
0 O
pera
ting
paym
ents
5,
326
(1,2
47)
(1,0
00)
3,07
9 2,
598
481
84,4
%
3,00
2 2,
043
Venu
es a
nd fa
cilitie
s 4,
996
44
- 5,
040
4,41
9 62
1 87
,7%
6,
151
5,17
3 R
enta
l and
hiri
ng
2,05
4 1
- 2,
055
1,96
1 94
95
,4%
1,
325
1,13
5 In
tere
st a
nd re
nt o
n la
nd
-
-
-
-
9 (9
) -
-
161
Inte
rest
-
- -
- 9
(9)
- -
161
Tran
sfer
s an
d su
bsid
ies
17
5,81
9 5,
660
15,3
00
196,
779
192,
879
3,90
0 98
,0%
11
6,61
5 11
5,68
2 Pr
ovin
ces
and
mun
icip
aliti
es
161,
141
5,00
0 15
,000
18
1,14
1 17
8,15
8 2,
983
98,4
%
100,
867
100,
867
Mun
icipa
l ban
k ac
coun
ts
161,
141
5,00
0 15
,000
18
1,14
1 17
8,15
8 2,
983
98,4
%
100,
867
100,
867
Dep
artm
enta
l age
ncie
s an
d ac
coun
ts
- 16
0 -
160
160
- 10
0,0%
-
-
Hous
ehol
ds
14,6
78
500
300
15,4
78
14,5
61
917
94,1
%
15,7
48
14,8
15
Socia
l ben
efits
14
,678
50
0 30
0 15
,478
14
,561
91
7 94
,1%
15
,727
14
,794
O
ther
tran
sfer
s to
hou
seho
lds
- -
- -
- -
- 21
21
Pa
ymen
ts fo
r cap
ital a
sset
s 36
,234
77
(6
,100
) 30
,211
26
,506
3,
705
87,7
%
23,8
24
13,6
56
Build
ings
&ot
her f
ixed
stru
ctur
es
6,04
9 -
- 6,
049
4,14
7 1,
902
68,6
%
10,3
51
4,99
2 O
ther
fixed
stru
ctur
es
6,04
9 -
- 6,
049
4,14
7 1,
902
68,6
%
10,3
51
4,99
2 M
achi
nery
and
equ
ipm
ent
30,1
65
(3,4
12)
(6,1
00)
20,6
53
18,8
50
1,80
3 91
,3%
13
,423
8,
664
Tran
spor
t equ
ipm
ent
8,19
5 79
8 -
8,99
3 8,
801
192
97,9
%
6,87
5 4,
325
Oth
er m
achi
nery
& e
quip
men
t 21
,970
(4
,210
) (6
,100
) 11
,660
10
,049
1,
611
86,2
%
6,54
8 4,
339
Softw
are
& ot
her i
ntan
gibl
e as
sets
20
3,
489
- 3,
509
3,50
9 -
100,
0%
50
- Pa
ymen
ts fo
r fin
anci
al a
sset
s -
- -
- 21
2 (2
12)
- -
7,72
1 TO
TAL
1,10
4,46
5 -
- 1,
104,
465
1,08
3,98
6 20
,479
98
,1%
1,
008,
477
953,
532
130
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
Stat
utor
y Ap
prop
riatio
n pe
r eco
nom
ic c
lass
ifica
tion
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
Econ
omic
cla
ssifi
catio
n R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0 Cu
rrent
pay
men
ts
C
ompe
nsat
ion
of e
mpl
oyee
s 2,
182
(200
) -
1,98
2 1,
978
4 99
,8%
1,
971
1,90
2
2,18
2 (2
00)
- 1,
982
1,97
8 4
99,8
%
1,97
1 1,
902
Prog
ram
me
1: A
DMIN
ISTR
ATIO
N 20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Sub
prog
ram
me
1.
Offi
ce o
f the
MEC
6,
793
466
- 7,
259
6,73
2 52
7 92
,7%
6,
560
6,04
5
2.
Cor
pora
te S
ervic
es
253,
608
(266
) (1
1,31
5)
242,
027
234,
721
7,30
5 97
,0%
23
6,68
3 22
5,54
3
Tota
l for
sub
pro
gram
mes
26
0,40
1 20
0 (1
1,31
5)
249,
286
241,
453
7,83
2 96
,9%
24
3,24
3 23
1,58
8
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
22
8,08
3 (5
7)
(5,2
15)
222,
811
216,
132
6,67
9 97
,0%
22
3,25
8 21
0,88
8
Com
pens
atio
n of
em
ploy
ees
160,
534
(500
) (2
,530
) 15
7,50
4 15
7,49
3 11
10
0,0%
14
0,62
5 13
4,80
0
Sala
ries
and
wag
es
139,
435
119
(2,4
80)
137,
074
137
064
10
100,
0%
121,
533
117,
033
Socia
l con
tribu
tions
21,0
99
(619
) (5
0)
20,4
30
20 4
29
1 10
0,0%
19
,092
17
,767
Goo
ds a
nd s
ervi
ces
67,5
49
443
(2,6
85)
65,3
07
58,6
31
6,67
6 89
,8%
82
,633
75
,932
Adm
inist
rativ
e fe
es
72
(36)
-
36
14
22
38,9
%
61
45
Adve
rtisin
g 1,
368
5 -
1,37
3 1,
255
118
91,4
%
807
613
Min
or a
sset
s 1,
484
(3)
- 1,
481
1,36
6 11
5 92
,2%
1,
341
1,34
0
Audi
t cos
ts: E
xter
nal
5,19
5 86
-
5,28
1 5,
281
- 10
0,0%
5,
608
4,97
7
131
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
Prog
ram
me
1: A
DMIN
ISTR
ATIO
N 20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Burs
arie
s: E
mpl
oyee
s 62
5 -
- 62
5 35
6 26
9 57
,0%
62
4 62
4
Cat
erin
g: D
epar
tmen
tal a
ctivi
ties
974
(28)
-
946
666
280
70,4
%
636
539
Com
mun
icatio
n 11
,140
2,
194
(960
) 12
,374
11
,580
79
4 93
,6%
21
,841
21
,680
Com
pute
r ser
vices
5,
357
- -
5,35
7 5,
247
110
97,9
%
9,64
0 9,
294
Con
sulta
nts:
Bus
ines
s an
d ad
visor
y se
rvice
s 1,
923
(78)
(5
) 1,
840
993
847
54,0
%
1,12
3 75
1
Lega
l ser
vices
4,
418
41
-
4,4
59
4,44
7 12
99
,7%
12
,549
12
,508
Con
tract
ors
295
(8)
-
2
87
271
16
94,4
%
652
356
Agen
cy a
nd s
uppo
rt /
outs
ourc
ed
serv
ices
1,81
6 (1
00)
(480
) 1,
236
838
398
67,8
%
70
61
Ente
rtain
men
t 10
6 -
- 10
6 75
31
70
,8%
14
8 10
2
Flee
t Ser
vices
4,
470
354
- 4,
824
4,82
4 -
100%
-
-
Con
sum
able
sup
plie
s 76
3 (5
0)
- 71
3 25
0 46
3 35
,1%
5,
534
5,26
2
Con
sum
able
: St
atio
nery
, pr
intin
g an
d of
fice
supp
lies
1,35
4 (1
27)
- 1,
227
1,06
6 16
1 86
,9%
1,
317
1,04
0
Ope
ratin
g le
ases
4,
500
(392
) -
4,10
8 4,
023
85
97,9
%
5,08
4 4,
862
Prop
erty
pay
men
ts
2,09
8 (4
00)
(240
) 1,
458
1,31
3 14
5 90
,1%
1,
676
1,28
2
Trav
el a
nd s
ubsis
tenc
e 11
,572
21
-
11,5
93
9,84
6 1,
747
84,9
%
10,0
26
7,85
8
Trai
ning
and
dev
elop
men
t 1,
585
- -
1,58
5 1,
207
378
76,2
%
1,27
6 1,
172
Ope
ratin
g pa
ymen
ts
4,01
1 (1
,005
) (1
,000
) 2,
006
1,74
7 25
9 87
,1%
1,
203
728
Venu
es a
nd fa
cilitie
s 2,
410
(31)
-
2,37
9 1,
966
413
82,6
%
1,34
6 83
9
Ren
tal a
nd h
iring
13
-
- 13
-
13
- 72
-
Inte
rest
and
rent
on
land
-
- -
- 8
(8)
- -
156
Inte
rest
-
- -
- 8
(8)
- -
156
Tran
sfer
s an
d su
bsid
ies
6,
268
160
- 6,
428
6,26
0 16
8 97
,4%
8,
692
7,84
7
132
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
Prog
ram
me
1: A
DMIN
ISTR
ATIO
N 20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Dep
artm
enta
l age
ncie
s an
d ac
coun
ts
- 16
0 -
160
160
- 10
0,0%
-
-
Hou
seho
lds
6,26
8 -
- 6,
268
6,10
0 16
8 97
,3%
8,
692
7,84
7
Socia
l ben
efits
6,
268
- -
6,26
8 6,
100
168
97,3
%
8,67
1 7,
826
Oth
er tr
ansf
ers
to h
ouse
hold
s
21
21
Paym
ents
for c
apita
l ass
ets
26,0
50
97
(6,1
00)
20,0
47
18,8
50
1,19
7 94
,0%
11
,293
7,
225
Mac
hine
ry a
nd e
quip
men
t 26
,050
97
(6
,100
) 20
,047
18
,850
1,
197
94,0
%
11,2
93
7,22
5
Tran
spor
t equ
ipm
ent
8,19
5 79
8 -
8,99
3 8,
801
192
97,9
%
6,87
5 4,
325
Oth
er m
achi
nery
and
equ
ipm
ent
17,8
55
(701
) (6
,100
) 11
,054
10
,049
1,
005
90,9
%
4,41
8 2,
900
Paym
ents
for f
inan
cial
ass
ets
- -
- -
212
(212
) -
- 5,
628
TOTA
L 26
0,40
1 20
0 (1
1,31
5)
249,
286
241,
454
7,83
2 96
,9%
24
3,24
3 23
1,58
8
1.1
Offi
ce o
f the
MEC
(Cor
e St
aff)
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
Econ
omic
cla
ssifi
catio
n R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Curre
nt p
aym
ents
6,
793
466
- 7,
259
6,73
2 52
7 92
,7%
6,
560
6,04
5
Com
pens
atio
n of
em
ploy
ees
3,97
8 17
0 -
4,14
8 4,
147
1 10
0,0%
3,
903
3,84
4
Sala
ries
and
wag
es
3,61
5 16
5 -
3,78
0 3,
780
- 10
0,0%
3,
575
3,53
4
Socia
l con
tribu
tions
36
3 5
- 36
8 36
7 1
99,7
%
328
310
Goo
ds a
nd s
ervi
ces
2,81
5 29
6 -
3,11
1 2,
585
526
83,1
%
2,65
7 2,
201
Adve
rtisin
g
Cat
erin
g: D
epar
tmen
tal a
ctivi
ties
334
- -
334
283
51
84,7
%
113
104
133
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
1.1
Offi
ce o
f the
MEC
(Cor
e St
aff)
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
Econ
omic
cla
ssifi
catio
n R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Con
tract
ors
- -
- -
- -
- 53
-
Ente
rtain
men
t 16
-
- 16
15
1
93,8
%
51
48
Con
sum
able
sup
plie
s 80
6
- 86
6
80
7,0%
6
6
Con
sum
able
: St
atio
nery
, pr
intin
g an
d of
fice
supp
lies
17
- -
17
17
- 10
0%
35
15
Trai
ning
and
dev
elop
men
t 10
-
- 10
-
10
0,0%
-
-
Trav
el a
nd s
ubsis
tenc
e 2,
085
290
- 2,
375
2,01
0 36
5 84
,6%
2,
187
1,97
5
Venu
es a
nd fa
cilitie
s 26
0 -
- 26
0 25
4 6
97,7
%
140
53
Ren
tal a
nd H
iring
13
-
- 13
-
13
- 72
-
TOTA
L 6,
793
466
- 7,
259
6,73
2 52
7 92
,7%
6,
560
6,04
5
1.2
Corp
orat
e Se
rvic
es
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l A
ppro
pria
tion
Act
ual
expe
nditu
re
Econ
omic
cla
ssifi
catio
n R'
000
R'00
0 R'
000
R'00
0 R
'000
R'
000
%
R'0
00
R'0
00
Curr
ent p
aym
ents
22
1,29
0 (5
23)
(5,2
15)
215,
552
209,
400
6,15
2 97
,1%
21
6,69
8 20
4,84
3
Com
pens
atio
n of
em
ploy
ees
156,
556
(670
) (2
,530
) 15
3,35
6 15
3,34
6 10
10
0,0%
13
6,72
2 13
0,95
6
Sala
ries
and
wag
es
135,
820
(46)
(2
,480
) 13
3,29
4 13
3,28
4 10
10
0,0%
11
7,95
8 11
3,49
9
Soci
al c
ontri
butio
ns
20,7
36
(624
) (5
0)
20,0
62
20,0
62
- 10
0,0%
18
,764
17
,457
Goo
ds a
nd s
ervi
ces
64,7
34
147
(2,6
85)
62,1
96
56,0
46
6,15
0 90
,1%
79
,976
73
,731
Adm
inis
trativ
e fe
es
72
(36)
-
36
14
22
38,9
%
61
45
Adve
rtisi
ng
1,36
8 5
- 1,
373
1,25
5 11
8 91
,4%
80
7 61
3
134
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
1.2
Corp
orat
e Se
rvic
es
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l A
ppro
pria
tion
Act
ual
expe
nditu
re
Econ
omic
cla
ssifi
catio
n R'
000
R'00
0 R'
000
R'00
0 R
'000
R'
000
%
R'0
00
R'0
00
Min
or a
sset
s 1,
484
(3)
- 1,
481
1,36
6 11
5 92
,2%
1,
341
1,34
0
Audi
t cos
ts: E
xter
nal
5,19
5 86
-
5,28
1 5,
281
- 10
0,0%
5,
608
4,97
7
Burs
arie
s: E
mpl
oyee
s 62
5 -
- 62
5 35
6 26
9 57
,0%
62
4 62
4
Cat
erin
g: D
epar
tmen
tal a
ctiv
ities
64
0 (2
8)
- 61
2 38
3 22
9 62
,6%
52
3 43
5
Com
mun
icat
ion
11,1
40
2,19
4 (9
60)
12,3
74
11,5
80
794
93,6
%
21,8
41
21,6
80
Com
pute
r ser
vice
s 5,
357
- -
5,35
7 5,
247
110
97,9
%
9,64
0 9,
294
Con
sulta
nts:
Bus
ines
s an
d ad
viso
ry s
ervi
ces
1,92
3 (7
8)
(5)
1,84
0 99
3 84
7 54
,0%
1,
123
751
Lega
l ser
vice
s 4,
418
41
- 4,
459
4,44
7 12
99
,7%
12
,549
12
,508
Con
tract
ors
295
(8)
- 28
7 27
1 16
94
,4%
59
9 35
6
Agen
cy a
nd s
uppo
rt / o
utso
urce
d se
rvic
es
1,81
6 (1
00)
(480
) 1,
236
838
398
67,8
%
70
61
Ente
rtain
men
t 90
-
-
90
60
30
66,7
%
97
54
Flee
t ser
vice
s 4,
470
354
- 4,
824
4,82
4 -
100,
0%
- -
Con
sum
able
sup
plie
s 68
3 (5
6)
- 62
7 24
4 38
3 38
,9%
5,
528
5,25
6
Con
sum
able
: Sta
tione
ry, p
rintin
g an
d of
fice
supp
lies
1,33
7 (1
27)
- 1,
210
1,04
9 16
1 86
,7%
1,
282
1,02
5
Ope
ratin
g le
ases
4,
500
(392
) -
4,10
8 4,
023
85
97,9
%
5,08
4 4,
862
Prop
erty
pay
men
ts
2,09
8 (4
00)
(240
) 1,
458
1,31
3 14
5 90
,1%
1,
676
1,28
2
Trav
el a
nd s
ubsi
sten
ce
9,48
7 (2
69)
- 9,
218
7,83
6 1,
382
85,0
%
7,83
9 5,
883
Trai
ning
and
dev
elop
men
t 1,
575
- -
1,57
5 1,
207
368
76,6
%
1,27
6 1,
172
Ope
ratin
g pa
ymen
ts
4,01
1 (1
,005
) (1
000)
2,
006
1,74
7 25
9 87
,1%
1,
203
728
Venu
es a
nd fa
cilit
ies
2,15
0 (3
1)
- 2,
119
1,71
2 40
7 80
,8%
1,
206
786
-
- -
- 8
(8)
- -
156
135
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
1.2
Corp
orat
e Se
rvic
es
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l A
ppro
pria
tion
Act
ual
expe
nditu
re
Econ
omic
cla
ssifi
catio
n R'
000
R'00
0 R'
000
R'00
0 R
'000
R'
000
%
R'0
00
R'0
00
Inte
rest
and
rent
on
land
Ren
t on
land
-
- -
- 8
(8)
-
156
Tran
sfer
s an
d su
bsid
ies
6,
268
160
- 6,
428
6,26
0 16
8 97
,4%
8,
692
7,84
7
Dep
artm
enta
l age
ncie
s (n
on-b
usin
ess
entit
ies)
-
160
-
160
160
- 10
0,0%
-
-
Hous
ehol
ds
6,26
8 -
- 6,
268
6,10
0 16
8 97
,3%
8,
692
7,84
7
Soci
al b
enef
its
6,26
8 -
- 6,
268
6,10
0 16
8 97
,3%
8,
671
7,82
6
Oth
er tr
ansf
ers
to h
ouse
hold
s -
- -
- -
- -
21
21
Paym
ents
for c
apita
l ass
ets
26,0
50
97
(6,1
00)
20,0
47
18,8
50
1,19
7 94
,0%
11
,293
7,
225
Mac
hine
ry a
nd e
quip
men
t 26
,050
97
(6
,100
) 20
,047
18
,850
1,
197
94,0
%
11,2
93
7,22
5
Tran
spor
t equ
ipm
ent
8,19
5 79
8 -
8,99
3 8,
801
192
97,9
%
6,87
5 4,
325
Oth
er m
achi
nery
and
equ
ipm
ent
17,8
55
(701
) (6
,100
) 11
,054
10
,049
1,
005
90,9
%
4,41
8 2,
900
Paym
ents
for f
inan
cial
ass
ets
- -
- -
212
(212
) -
- 5,
628
TOTA
L 25
3,60
8 (2
66)
(11,
315)
24
2,02
7 23
4,72
2 7,
305
97,0
%
236,
683
225,
543
136
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
Prog
ram
me
2: L
ocal
Gov
erna
nce
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Sub
prog
ram
me
1.
Mun
icipa
l Adm
inist
ratio
n 31
,135
(1
200)
-
29,9
35
29,3
62
573
98,1
%
28,8
38
28,2
13
2.
Mun
icipa
l Fin
ance
58
,036
4,
600
25,0
00
87,6
36
87,1
89
447
99,5
%
57,7
04
54,8
03
3.
Mun
icipa
l Pub
lic P
artic
ipat
ion
165,
701
4,20
0 -
169,
901
168,
132
1,76
9 99
,0%
16
6,21
0 15
7,00
9
4.
Cap
acity
Bui
ldin
g 8,
932
(147
) -
8,78
5 8,
539
246
97,2
%
10,5
95
10,3
03
5.
Mun
icipa
l Per
form
ance
, 10
,356
(7
,453
) -
2,90
3 2,
270
633
78,2
%
19,0
41
16,7
95
Mon
itorin
g, R
epor
ting
and
Eval
uatio
n
Tota
l for
sub
pro
gram
mes
27
4,16
0 -
25,0
00
299,
160
295,
492
3,66
8 98
,8%
28
2,38
8 26
7,12
3
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
21
4,61
3 (5
,000
) -
209,
613
205,
945
3,66
8 98
,3%
21
2,40
0 19
6,40
6
Com
pens
atio
n of
em
ploy
ees
203,
750
(5,0
00)
- 19
8,75
0 19
7,90
6 84
4 99
,6%
19
9,39
8 18
4,90
2
Sala
ries
and
wag
es
171,
723
(5,4
00)
- 16
6,32
3 16
6,07
3 25
0 99
,9%
16
8,31
6 15
5,25
3
Socia
l con
tribu
tions
32
,027
40
0 -
32,4
27
31,8
33
594
98,2
%
31,0
82
29,6
49
Goo
ds a
nd s
ervi
ces
10,8
63
- -
10,8
63
8,03
9 2,
824
74,0
%
13,0
02
11,5
02
Adve
rtisin
g -
- -
- -
- -
15
-
Min
or a
sset
s -
- -
- -
- -
146
117
Burs
arie
s: E
mpl
oyee
s -
- -
- -
- -
110
-
Cat
erin
g: D
epar
tmen
tal a
ctivi
ties
829
(100
) -
729
412
317
56,5
%
598
552
Com
mun
icatio
n -
- -
- -
- -
24
-
Ente
rtain
men
t 28
-
- 28
21
7
75,0
%
22
16
Con
sum
able
sup
plie
s
-
-
- -
- -
- 12
9 72
Con
sum
able
: St
atio
nery
, pr
intin
g an
d of
fice
supp
lies
320
(9)
- 31
1 20
1 11
0 64
,6%
22
0 76
Trav
el a
nd s
ubsis
tenc
e 8,
588
122
- 8,
710
6,63
5 2,
075
76,2
%
7,34
2 6,
685
137
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
Prog
ram
me
2: L
ocal
Gov
erna
nce
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Trai
ning
and
dev
elop
men
t -
- -
- -
- -
81
12
Ope
ratin
g pa
ymen
ts
301
1 -
302
153
149
50,7
%
411
301
Venu
es a
nd fa
cilitie
s 68
7 (1
4)
- 67
3 58
7 86
87
,2%
3,
794
3,59
5
Ren
tal a
nd h
iring
11
0 -
- 11
0 30
80
27
,3%
11
0 76
Tran
sfer
s an
d su
bsid
ies
59
,547
5,
000
25,0
00
89,5
47
89,5
47
- 10
0,0%
69
,106
69
,106
Prov
ince
s an
d m
unici
paliti
es
59,5
47
5,00
0 25
,000
89
,547
89
,547
-
100,
0%
69,1
06
69,1
06
Mun
icipa
l ban
k ac
coun
ts
59,5
47
5,00
0 25
,000
89
,547
89
,547
-
100,
0%
69,1
06
69,1
06
Paym
ents
for c
apita
l ass
ets
- -
- -
- -
- 88
2 61
3
Mac
hine
ry a
nd e
quip
men
t -
- -
- -
- -
882
613
Oth
er m
achi
nery
and
equ
ipm
ent
- -
- -
- -
- 88
2 61
3
Paym
ents
for
finan
cial a
sset
s -
- -
- -
- -
- 1,
000
Tota
l 27
4,16
0 -
25,0
00
299,
160
295,
492
3,66
8 98
,8%
28
2,38
8 26
7,12
3
2.1
Mun
icip
al A
dmin
istr
atio
n
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l A
ppro
pria
tion
Act
ual
expe
nditu
re
Econ
omic
cla
ssifi
catio
n R'
000
R'00
0 R'
000
R'00
0 R
'000
R'
000
%
R'0
00
R'0
00
Curr
ent p
aym
ents
16
,135
(1
,200
) -
14,9
35
14,3
62
573
96,2
%
15,8
38
14,8
63
Com
pens
atio
n of
em
ploy
ees
13,8
17
(1,2
00)
- 12
,617
12
,511
10
6 99
,2%
13
,731
13
,139
Sala
ries
and
wag
es
12,2
28
(1,2
00)
- 11
,028
11
,024
4
100,
0%
12,1
76
11,5
91
Soci
al c
ontri
butio
ns
1,58
9 -
- 1,
589
1,48
6 10
3 93
,5%
1,
555
1,54
8
138
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
2.1
Mun
icip
al A
dmin
istr
atio
n
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l A
ppro
pria
tion
Act
ual
expe
nditu
re
Econ
omic
cla
ssifi
catio
n R'
000
R'00
0 R'
000
R'00
0 R
'000
R'
000
%
R'0
00
R'0
00
Goo
ds a
nd s
ervi
ces
2,31
8 -
- 2,
318
1,85
1 46
7 79
,9%
2,
107
1,72
4
Cat
erin
g: D
epar
tmen
tal a
ctiv
ities
18
6 -
- 18
6 16
9 17
90
,9%
11
2 99
Ente
rtain
men
t 12
-
- 12
12
-
100,
0%
8 7
Con
sum
able
: Sta
tione
ry, p
rintin
g an
d of
fice
supp
lies
78
- -
78
31
47
39,7
%
59
36
Trav
el a
nd s
ubsi
sten
ce
1,78
1 -
- 1,
781
1,43
9 34
2 80
,8%
1,
579
1,27
4
Ope
ratin
g pa
ymen
ts
120
- -
120
90
30
75,0
%
240
219
Venu
es a
nd fa
cilit
ies
141
- -
141
110
31
78,0
%
109
89
Tran
sfer
s an
d su
bsid
ies
15,0
00
- -
15,0
00
15,0
00
- 10
0,0%
13
,000
13
,000
Pro
vinc
es a
nd m
unic
ipal
ities
15
,000
-
- 15
,000
15
,000
-
100,
0%
13,0
00
13,0
00
Mun
icip
al b
ank
acco
unts
15
,000
-
- 15
,000
15
,000
-
100,
0%
13,0
00
13,0
00
Paym
ents
for f
inan
cial
ass
ets
-
350
TOTA
L 31
,135
(1
,200
) -
29,9
35
29,3
62
573
98,1
%
28,8
38
28,2
13
2.2
Mun
icip
al F
inan
ce
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l A
ppro
pria
tion
Act
ual
expe
nditu
re
Econ
omic
cla
ssifi
catio
n R'
000
R'00
0 R'
000
R'00
0 R
'000
R'
000
%
R'0
00
R'0
00
Curr
ent p
aym
ents
13
,489
(4
00)
- 13
,089
12
,642
44
7 96
,6%
13
,598
10
,715
Com
pens
atio
n of
em
ploy
ees
12,0
19
(400
) -
11,6
19
11,3
25
294
97,5
%
11,9
32
9,22
5
Sala
ries
and
wag
es
10,3
40
(400
) -
9,94
0 9,
843
97
99,0
%
10,2
51
7,90
6
Soci
al c
ontri
butio
ns
1,67
9 -
- 1,
679
1,48
2 19
7 88
,3%
1,
681
1,31
9
139
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
2.2
Mun
icip
al F
inan
ce
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l A
ppro
pria
tion
Act
ual
expe
nditu
re
Econ
omic
cla
ssifi
catio
n R'
000
R'00
0 R'
000
R'00
0 R
'000
R'
000
%
R'0
00
R'0
00
Goo
ds a
nd s
ervi
ces
1,47
0 -
- 1,
470
1,31
6 15
3 89
,6%
1,
666
1,49
0
Adve
rtisi
ng
- -
- -
- -
- 15
-
Min
or A
sset
s -
- -
- -
- -
- (2
)
Cat
erin
g: D
epar
tmen
tal a
ctiv
ities
15
8 (7
0)
- 88
46
42
52
,3%
85
85
Ente
rtain
men
t 2
- -
2 2
- 10
0%
- -
Con
sum
able
: Sta
tione
ry, p
rintin
g an
d of
fice
supp
lies
30
- -
30
30
- 10
0,0%
15
12
Trav
el a
nd s
ubsi
sten
ce
1,04
2 69
-
1,11
1 1,
033
78
93,0
%
715
705
Ope
ratin
g pa
ymen
ts
- 1
- 1
1 -
100,
0%
- -
Venu
es a
nd fa
cilit
ies
238
- -
238
205
33
86,1
%
836
690
Tran
sfer
s an
d su
bsid
ies
44
,547
5,
000
25,0
00
74,5
47
74,5
47
- 10
0,0%
44
,106
44
,106
Prov
ince
s an
d m
unici
paliti
es
44,5
47
5,00
0 25
,000
74
,547
74
,547
-
100,
0%
44,1
06
44,1
06
Mun
icipa
l ban
k ac
coun
ts
44,5
47
5,00
0 25
,000
74
,547
74
,547
-
100,
0%
44,1
06
44,1
06
Paym
ents
for c
apita
l ass
ets
- -
- -
- -
- -
(18)
Mac
hine
ry a
nd e
quip
men
t -
- -
- -
- -
- (1
8)
Oth
er m
achi
nery
and
equ
ipm
ent
- -
- -
- -
- -
(18)
TOTA
L 58
,036
4,
600
25,0
00
87,6
36
87,1
89
447
99,5
%
57,7
04
54,8
03
140
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
2.3:
Mun
icip
al P
ublic
Par
ticip
atio
n
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l A
ppro
pria
tion
Act
ual
expe
nditu
re
Econ
omic
cla
ssifi
catio
n R'
000
R'00
0 R'
000
R'00
0 R
'000
R'
000
%
R'0
00
R'0
00
Curr
ent p
aym
ents
16
5,70
1 4
,200
-
169,
901
168,
132
1,76
9 99
,0%
15
3,32
8 14
3,72
8
Com
pens
atio
n of
em
ploy
ees
161,
006
4,20
0 -
165,
206
165,
104
102
99,9
%
149,
396
140,
483
Sala
ries
and
wag
es
134,
642
2,80
0 -
137,
442
137,
417
25
100,
0%
124,
475
116,
249
Soci
al c
ontri
butio
ns
26,3
64
1,40
0 -
27,7
64
27,6
87
77
99,7
%
24,9
21
24,2
34
Goo
ds a
nd s
ervi
ces
4,69
5 -
- 4,
695
3,02
8 1,
667
64,5
%
3,93
2 3,
245
Min
or a
sset
s -
- -
- -
- -
143
119
Burs
arie
s: E
mpl
oyee
s -
- -
- -
- -
110
-
Cat
erin
g: D
epar
tmen
tal a
ctiv
ities
37
2 -
- 37
2 14
3 22
9 38
,4%
24
3 24
1
Com
mun
icat
ion
- -
- -
- -
- 24
-
Ente
rtain
men
t 6
- -
6 2
4 33
,3%
6
2
Con
sum
able
Sup
plie
s -
- -
- -
- -
125
68
Con
sum
able
: Sta
tione
ry, p
rintin
g an
d of
fice
supp
lies
166
- -
166
108
58
65,1
%
119
6
Trav
el a
nd s
ubsi
sten
ce
3812
-
- 3,
812
2,61
7 1,
195
68,7
%
2,72
2 2,
477
Ope
ratin
g pa
ymen
ts
115
- -
115
18
97
15,7
%
80
11
Venu
es a
nd fa
cilit
ies
114
- -
114
110
4 96
,5%
25
0 24
5
Ren
tal a
nd h
iring
11
0 -
- 11
0 30
80
27
,3%
11
0 76
Tran
sfer
s an
d su
bsid
ies
-
- -
- -
-
- 12
,000
12
,000
Prov
ince
s an
d m
unic
ipal
ities
-
- -
- -
-
- 12
,000
12
,000
Mun
icipa
l ban
k ac
coun
ts
- -
- -
-
-
-
12,0
00
12,0
00
Paym
ents
for c
apita
l ass
ets
- -
- -
- -
- 88
2 63
1
Oth
er m
achi
nery
& e
quip
men
t -
- -
- -
- -
882
631
Paym
ents
for f
inan
cial
ass
ets
- -
- -
- -
- -
650
TOTA
L 16
5,70
1 4,
200
- 16
9,90
1 16
8,13
2 1,
769
99,0
%
166,
210
157,
009
2.4
Capa
city
Bui
ldin
g
141
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l A
ppro
pria
tion
Act
ual
expe
nditu
re
Econ
omic
cla
ssifi
catio
n R'
000
R'00
0 R'
000
R'00
0 R
'000
R'
000
%
R'0
00
R'0
00
Curr
ent p
aym
ents
8,
932
(147
) -
8,78
5 8,
539
246
97,2
%
10,5
95
10,3
03
Com
pens
atio
n of
em
ploy
ees
7,66
7 (2
00)
- 7,
467
7,25
3 21
4 97
,1%
6,
743
6,51
7
Sala
ries
and
wag
es
6,59
0 (2
00)
- 6,
390
6,32
9 61
99
,0%
5,
885
5,66
0
Soci
al c
ontri
butio
ns
1,07
7 -
- 1,
077
924
153
85,8
%
858
857
Goo
ds a
nd s
ervi
ces
1,26
5 53
-
1,31
8 1,
286
32
97,6
%
3,85
2 3,
786
Cat
erin
g: D
epar
tmen
tal a
ctiv
ities
44
(3
0)
- 14
14
-
100,
0%
103
103
Ente
rtain
men
t 2
- -
2 1
1 50
,0%
2
2
Con
sum
able
: Sta
tione
ry, p
rintin
g an
d of
fice
supp
lies
29
(9)
- 20
16
4
80,0
%
8 8
Trav
el a
nd s
ubsi
sten
ce
1,05
0 10
6 -
1,15
6 1,
144
12
99,0
%
1,20
5 1,
139
Venu
es a
nd fa
cilit
ies
140
(14)
-
126
111
15
88,1
%
2,53
4 2,
534
TOTA
L 8,
932
(147
) -
8,78
5 8,
539
246
97,2
%
10,5
95
10,3
03
2.5
Mun
icip
al P
erfo
rman
ce M
onito
ring,
Rep
ortin
g &
Eval
uatio
n 20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
Econ
omic
cla
ssifi
catio
n R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Curre
nt p
aym
ents
10
,356
(7
,453
) -
2,90
3 2,
270
633
78,2
%
19,0
41
16,7
95
Com
pens
atio
n of
em
ploy
ees
9,24
1 (7
,400
) -
1,84
1 1,
713
128
93,0
%
17,5
96
15,5
38
Sala
ries
and
wag
es
7,92
3 (6
,400
) -
1,52
3 1,
460
63
95,9
%
15,5
29
13,8
47
Socia
l con
tribu
tions
1,
318
(1,0
00)
- 31
8 25
3 65
79
,6%
2,
067
1,69
1
Goo
ds a
nd s
ervi
ces
1,11
5 (5
3)
- 1,
062
557
505
52,4
%
1,44
5 1,
257
Min
or a
sset
s -
- -
- -
- -
3 -
Cat
erin
g: D
epar
t act
ivitie
s 69
-
- 69
40
29
58
,0%
55
24
142
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
2.5
Mun
icip
al P
erfo
rman
ce M
onito
ring,
Rep
ortin
g &
Eval
uatio
n 20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
Econ
omic
cla
ssifi
catio
n R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Ente
rtain
men
t 6
- -
6 4
2 66
,7%
6
5
Con
sum
able
sup
plie
s -
- -
- -
- -
4 4
Con
sum
able
: St
atio
nery
, pr
intin
g an
d of
fice
supp
lies
17
- -
17
16
1 94
,1%
19
14
Trav
el a
nd s
ubsis
tenc
e 90
3 (5
3)
- 85
0 40
2 44
8 47
,3%
1,
121
1,09
0
Trai
ning
and
dev
elop
men
t
81
12
Ope
ratin
g pa
ymen
ts
66
- -
66
44
22
66,7
%
91
71
Venu
es a
nd fa
cilitie
s 54
-
- 54
51
3
94,4
%
65
37
Tota
l 10
,356
(7
,453
) -
2,90
3 2,
270
633
78,2
%
19,0
41
16,7
95
Prog
ram
me
3: D
evel
opm
ent a
nd P
lann
ing
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Sub
prog
ram
me
1.
Spat
ial P
lann
ing
15,9
24
(467
) (9
00)
14,5
57
14,0
56
501
96,6
%
18,0
03
12,7
87
2.
Dev
elop
men
t Ad
min
/ La
nd
Use
Man
agem
ent
25,5
19
(4,6
56)
- 20
,863
20
,728
13
5 99
,4%
25
,065
20
,351
3.
Inte
grat
ed D
evel
opm
enta
l Pla
nnin
g 5,
852
2,17
9 (1
,000
) 7,
031
6,98
5 46
99
,3%
7,
690
7,01
5
4.
LED
& P
lann
ing
23,0
60
3,08
7 (2
,670
) 23
,477
23
,227
25
0 98
,9%
23
,148
21
,652
5.
Mun
icipa
l Inf
rast
ruct
ure
124,
041
438
(10,
580
) 11
3,89
9 11
3, 3
72
527
99,5
%
53,7
03
51,2
74
6.
Disa
ster
Man
agem
ent
19,5
19
(581
) (1
,420
) 17
,518
14
,494
3,
024
82,7
%
20,1
08
13,6
73
143
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
Prog
ram
me
3: D
evel
opm
ent a
nd P
lann
ing
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Tota
l for
sub
pro
gram
mes
21
3,91
5 -
(16,
570)
19
7,34
5 19
2,86
2 4,
483
97,7
%
147,
717
126,
752
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
10
8,18
6 20
(6
,570
) 10
1,63
6 10
0,74
2 89
4 99
,1%
11
1,16
6 93
,449
Com
pens
atio
n of
em
ploy
ees
93,4
26
- (5
,670
) 87
,756
87
,726
30
10
0,0%
98
,215
83
,121
Sala
ries
and
wag
es
81,8
84
253
(4,9
70)
77,1
67
77,1
45
22
100,
0%
85,7
15
72,8
36
Socia
l con
tribu
tions
11
,542
(2
53)
(700
) 10
,589
10
,581
8
99,9
%
12,5
00
10,2
85
Goo
ds a
nd s
ervi
ces
14,7
60
20
(900
) 13
,880
13
,016
86
4 93
,8%
12
,951
10
,328
Adm
inist
rativ
e fe
es
- -
- -
- -
- 15
15
Adve
rtisin
g 24
0 (9
3)
- 14
7 14
6 1
99,3
%
30
10
Min
or a
sset
s 13
6
- 19
16
3
84,2
%
18
13
Cat
erin
g: D
epar
t. ac
tivitie
s 18
6 (1
1)
- 17
5 16
2 13
92
,6%
15
2 13
6
Con
sulta
nts:
Bus
ines
s &
advis
ory
2,63
7 10
9 (9
00)
1,84
6 1,
426
420
77,2
%
2,47
8 81
5
Con
tract
ors
1,96
6 7
- 1,
973
1,97
3 -
100,
0%
1,91
2 1,
899
Ente
rtain
men
t 21
(1
) -
20
17
3 85
,0%
23
17
Con
sum
able
sup
plie
s 12
0 -
- 12
0 11
4 6
95,0
%
88
88
Con
sum
able
: St
atio
nery
, pr
intin
g an
d of
fice
supp
lies
230
(62)
-
168
134
34
79,8
%
172
131
Prop
erty
pay
men
ts
- 12
6 -
126
126
- 10
0,%
10
4 24
Trav
el a
nd s
ubsis
tenc
e 7,
902
(110
) -
7,79
2 7,
535
257
96,7
%
6,67
5 6,
159
Trai
ning
and
dev
elop
men
t 40
(1
2)
- 28
27
1
96,4
%
- -
Ope
ratin
g pa
ymen
ts
63
20
- 83
34
49
41
,0%
72
0 56
2
Venu
es a
nd fa
cilitie
s 1,
342
41
- 1,
383
1,30
6 77
94
,4%
56
4 46
1
Tran
sfer
s an
d su
bsid
ies
-
- -
- -
- -
31
,761
31,7
61
144
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
Prog
ram
me
3: D
evel
opm
ent a
nd P
lann
ing
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Prov
ince
s an
d m
unic
ipal
ities
10
1,59
4 -
(10,
000)
91
,594
88
,611
2,
983
96,7
31
,761
31
,761
Mun
icipa
l ban
k ac
coun
ts
101,
594
- (1
0,00
0)
91,5
94
88,6
11
2,98
3 96
,7
31,7
61
31,7
61
Paym
ents
for c
apita
l ass
ets
4,13
5 (2
0)
- 4,
115
3,50
9 60
6 85
,3%
4,
790
1,54
2
Build
ings
and
oth
er fi
xed
stru
ctur
es
- -
- -
- -
- 4,
100
936
Build
ings
-
- -
- -
- -
4,10
0 93
6
Mac
hine
ry a
nd e
quip
men
t 4,
115
(3,5
09)
- 60
6 -
606
85,3
%
640
606
Oth
er m
achi
nery
& e
quip
men
t 4,
115
(3,5
09)
- 60
6 -
606
85,3
%
640
606
Sof
twar
e &
othe
r int
angi
ble
ass
ets
20
3,48
9 -
3,50
9 3,
509
- 10
0,0%
50
-
Tota
l 21
3,91
5 -
(16,
570)
19
7,34
5 19
2,86
2 4,
483
97,7
%
147,
717
126,
752
3.1:
Spa
tial P
lann
ing
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
15
,844
(4
67)
(900
) 14
,477
14
,056
42
1 97
,1%
17
,333
12
,201
Com
pens
atio
n of
em
ploy
ees
11,7
15
(440
) -
11,2
75
11,2
71
4 10
0,0%
13
,896
10
,546
Sala
ries
and
wag
es
10,4
04
(442
) -
9,96
2 9,
959
3 10
0,0%
11
,998
9,
310
Socia
l con
tribu
tions
1,
311
2 -
1,31
3 1,
312
1 99
,9%
1,
898
1,23
6
Goo
ds a
nd s
ervi
ces
4,12
9 (2
7)
(900
) 3,
202
2,78
5 41
7 87
,0%
3,
437
1,65
5
Cat
erin
g: D
epar
tmen
tal a
ctivi
ties
20
- -
20
18
2 90
,0%
12
11
145
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
3.1:
Spa
tial P
lann
ing
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Con
sulta
nts:
Bus
ines
s an
d ad
visor
y se
rvice
s 2,
555
109
(900
) 1,
764
1,35
6 40
8 76
,9%
2,
300
638
Ente
rtain
men
t 2
- -
2 2
- 10
0,0%
1
1
Con
sum
able
: St
atio
nery
, pr
intin
g an
d of
fice
supp
lies
50
(50)
-
- -
- -
25
25
Trav
el a
nd s
ubsis
tenc
e 1,
482
(67)
-
1,41
5 1,
409
6 99
,6%
1,
079
974
Venu
es a
nd fa
cilitie
s 20
(1
9)
- 1
- 1
- 20
6
Paym
ents
for c
apita
l ass
ets
80
- -
80
- 80
-
670
586
M
achi
nery
& e
quip
men
t 80
-
- 80
-
80
- 62
0 58
6
Oth
er m
achi
nery
& e
quip
men
t 80
-
- 80
-
80
- 62
0 58
6
Softw
are
and
othe
r in
tang
ible
as
sets
-
- -
- -
- -
50
-
TOTA
L 15
,924
(4
67)
(900
) 14
,557
14
,056
50
1 96
,6%
18
,003
12
,787
3.2
Deve
lopm
ent A
dmin
/ Lan
d Us
e M
anag
emen
t 20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
25
,499
(4
,636
) -
20,8
63
20,7
28
135
99,4
%
25,0
45
20,3
32
Com
pens
atio
n of
em
ploy
ees
23,1
84
(4,4
31)
- 18
,753
18
,746
7
100,
0%
22,2
74
18,0
91
Sala
ries
and
wag
es
20,3
72
3,92
0 -
16,4
52
16,4
45
7 10
0,0%
19
,268
15
,844
Socia
l con
tribu
tions
2,
812
(511
) -
2,30
1 2,
301
- 10
0,0%
3,
006
2,24
7
Goo
ds a
nd s
ervic
es
2,31
5 (2
05)
- 2,
110
1,98
2 12
8 93
,9%
2,
771
2,24
1
146
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
3.2
Deve
lopm
ent A
dmin
/ Lan
d Us
e M
anag
emen
t 20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Min
or a
sset
s 13
-
- 13
10
3
76,9
%
18
13
Cat
erin
g: D
epar
tmen
tal a
ctivi
ties
3 -
- 3
1 2
33,3
%
5 -
Con
sulta
nts:
Bus
ines
s an
d ad
visor
y se
rvice
s 82
-
- 82
70
12
85
,4%
17
8 17
7
Ente
rtain
men
t 8
- -
8 7
1 87
,5%
9
6
Con
sum
able
Sup
plie
s 50
-
- 50
45
5
90,0
%
Con
sum
able
: St
atio
nery
, pr
intin
g an
d of
fice
supp
lies
34
- -
34
12
22
35,3
%
67
35
Trav
el a
nd s
ubsis
tenc
e 2,
021
(225
) -
1,79
6 1,
780
16
99,1
%
1,72
9 1,
412
Ope
ratin
g pa
ymen
ts
34
20
- 54
13
41
24
,1%
72
0 56
2
Venu
es a
nd fa
cilitie
s 70
-
- 70
44
26
62
,9%
45
37
Paym
ents
for c
apita
l ass
ets
20
(20)
-
- -
- -
20
20
Mac
hine
ry a
nd e
quip
men
t -
- -
- -
- -
20
20
Oth
er m
achi
nery
and
equ
ipm
ent
- -
- -
- -
- 20
20
Softw
are
and
othe
r int
angi
ble
asse
ts
20
(20)
-
- -
- -
- -
TOTA
L 25
,519
4,
656
- 20
,863
20
,728
13
5 99
,4%
25
,065
20
,351
147
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
3.3:
Inte
grat
ed D
evel
opm
enta
l Pla
nnin
g 20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
5,
852
2,17
9 (1
,000
) 7,
031
6,98
5 46
99
,3%
7,
690
7,01
5
Com
pens
atio
n of
em
ploy
ees
4,43
2 2,
100
(1,0
00)
5,53
2 5,
530
2 10
0,0%
6,
754
6,13
4
Sala
ries
and
wag
es
3,49
9 1,
928
(600
) 4,
827
4,82
6 1
100,
0%
6,00
7 5,
396
Socia
l con
tribu
tions
93
3 17
2 (4
00)
705
704
1 99
,9%
74
7 73
8
Goo
ds a
nd s
ervi
ces
1,42
0 79
-
1,49
9 1,
455
44
97,1
%
936
881
Ente
rtain
men
t 1
- -
1 -
1 -
- -
Trav
el a
nd s
ubsis
tenc
e 67
9 29
-
708
708
- 10
0,0%
53
6 51
0
Venu
es a
nd fa
cilitie
s 74
0 50
-
790
747
43
94,6
%
400
371
TOTA
L 5,
852
2,17
9 (1
,000
) 7,
031
6,98
5 46
99
,3%
7,
690
7,01
5
3.4:
LED
& P
lann
ing
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
23
,060
3,
087
(2,6
70)
23,4
77
23,2
27
250
98,9
%
23,1
48
21,6
52
Com
pens
atio
n of
em
ploy
ees
18,6
69
3,08
7 (2
,670
) 19
,086
19
,087
(1
) 10
0,0%
19
,676
18
,263
Sala
ries
and
wag
es
16,3
15
2,84
1 (2
,370
) 16
,786
16
,786
-
100,
0%
17,2
39
15,9
35
Socia
l con
tribu
tions
2,
354
246
(300
) 2,
300
2,30
1 (1
) 10
0,0%
2,
437
2,32
8
Goo
ds a
nd s
ervi
ces
4,39
1 -
- 4,
391
4,14
0 25
1 94
,3%
3,
472
3,38
9
Adve
rtisin
g 24
0 (9
3)
- 14
7 14
6 1
99,3
%
- -
148
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
3.4:
LED
& P
lann
ing
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Cat
erin
g: D
epar
t act
ivitie
s 40
(1
0)
- 30
29
1
96,7
%
38
31
Con
tract
ors
1,96
6 7
- 1,
973
1,97
3 -
100,
0%
1,91
2 1,
899
Ente
rtain
men
t 4
- -
4 4
- 10
0,0%
7
7
Con
sum
able
sup
plie
s 70
-
- 70
69
1
98,6
%
88
88
Con
sum
able
: St
atio
nery
, pr
intin
g an
d of
fice
supp
lies
98
(7)
- 91
85
6
93,4
%
39
31
Trav
el a
nd s
ubsis
tenc
e 1,
492
93
- 1,
585
1,35
4 23
1 85
,4%
1,
324
1,29
9
Ope
ratin
g pa
ymen
ts
29
- -
29
21
8 72
,4%
-
-
Venu
es a
nd fa
cilitie
s 45
2 10
-
462
459
3 99
,4%
64
35
TOTA
L 23
,060
3,
087
(2,6
70)
23,4
77
23,2
27
250
98,9
%
23,1
48
21,6
52
3.5:
Mun
icip
al In
frast
ruct
ure
20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
25
,447
43
8 (5
80)
25,3
05
25,2
93
12
100,
0%
21,9
42
19,5
13
Com
pens
atio
n of
em
ploy
ees
23,7
18
398
(580
) 23
,536
23
,533
3
100,
0%
20,3
38
17,9
69
Sala
ries
and
wag
es
20,8
39
488
(580
) 20
,747
20
,745
2
100,
0%
17,7
94
15,7
73
Socia
l con
tribu
tions
2,
879
(90)
-
2,78
9 2,
788
1 10
0,0%
2,
544
2,19
6
Goo
ds a
nd s
ervi
ces
1,72
9 40
-
1,76
9 1,
760
9 99
,5%
1,
604
1,54
4
Cat
erin
g: D
epar
tmen
tal a
ctivi
ties
- -
- -
- -
- 4
3
Ente
rtain
men
t 4
- -
4 3
1 75
%
4 3
149
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
3.5:
Mun
icip
al In
frast
ruct
ure
20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Con
sum
able
: St
atio
nery
, pr
intin
g an
d of
fice
supp
lies
10
- -
10
6 4
60,0
%
24
23
Trav
el a
nd s
ubsis
tenc
e 1,
655
40
- 1,
695
1,69
5 -
100,
0%
1,53
7 1,
501
Venu
es a
nd fa
cilitie
s
60
- -
60
56
4 93
,3%
35
13
Tran
sfer
s an
d su
bsid
ies
98,5
94
- (1
0,00
0)
88,5
94
88,0
79
515
99,4
%
31,7
61
31,7
61
Prov
ince
s an
d m
unic
ipal
ities
98
,594
-
(10,
000)
88
,594
88
,079
51
5 99
,4%
31
,761
31
,761
Mun
icipa
lities
98
,594
-
(10,
000)
88
,594
88
,079
51
5 99
,4%
31
,761
31
,761
Mun
icipa
l Ban
k ac
coun
ts
98,5
94
- (1
0,00
0)
88,5
94
88,0
79
515
99,4
%
31,7
61
31,7
61
TOTA
L 12
4,04
1 43
8 (1
0,58
0)
113,
899
113,
373
527
99,5
%
53,7
03
51,2
74
3.6:
Dis
aste
r Man
agem
ent
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
12
,484
(5
81)
(1,4
20)
10,4
83
10,4
53
30
99,7
%
16,0
08
12,7
37
Com
pens
atio
n of
em
ploy
ees
11,7
08
(714
) (1
,420
) 9,
574
9,55
9 15
99
,8%
15
,277
12
,118
Sala
ries
and
wag
es
10,4
55
(642
) (1
,420
) 8,
393
8,38
4 9
99,9
%
13,4
09
10,5
78
Socia
l con
tribu
tions
1,
253
(72)
-
1,18
1 1,
175
6 99
,5%
1,
868
1,54
0
Goo
ds a
nd s
ervi
ces
776
133
- 90
9 89
4 15
98
,3%
73
1 61
9
Adm
inist
rativ
e -
- -
- -
- -
15
15
150
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
3.6:
Dis
aste
r Man
agem
ent
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Adve
rtisin
g -
- -
- -
- -
30
10
Min
or a
sset
s -
6 -
6 6
- 10
0,0%
-
-
Cat
erin
g: D
epar
t. ac
tivitie
s 12
3 (1
) -
122
114
8 93
,4%
93
90
Ente
rtain
men
t 2
(1)
- 1
1 -
100,
0%
2 -
Con
sum
able
: St
atio
nery
, pr
intin
g an
d of
fice
supp
lies
38
(5)
- 33
31
2
93,9
%
17
17
Prop
erty
pay
men
ts
- 12
6 -
126
126
- 10
0,0%
10
4 24
Trav
el a
nd s
ubsis
tenc
e 57
3 20
-
593
589
4 99
,3%
47
0 46
3
Trai
ning
and
Dev
elop
men
t 40
(1
2)
- 28
27
1
96,4
Tran
sfer
s an
d Su
bsid
ies
3,00
0 -
- 3,
000
532
2,46
8 17
,7%
-
-
Mun
icipa
l ban
k ac
coun
ts
3,00
0 -
- 3,
000
532
2,46
8 17
,7%
-
-
Paym
ents
for c
apita
l ass
ets
4,03
5 -
- 4,
035
3,50
9 52
6 87
,0%
4,
100
936
Build
ings
-
- -
- -
- -
4,10
0 93
6
Oth
er m
achi
nery
& e
quip
men
t 4,
035
(3,5
09)
- 52
6 -
526
0
%
- -
Softw
are
and
othe
r int
angi
ble
asse
ts
- 3,
509
- 3,
509
3,50
9 -
100%
-
-
TOTA
L 19
,519
(5
81)
(1,4
20)
17,5
18
14,4
94
3,02
4 82
,7%
20
,108
13
,673
151
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
Prog
ram
me
4: T
radi
tiona
l Ins
titut
iona
l Man
agem
ent
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Sub
prog
ram
me
1.
Trad
itiona
l Res
ourc
e Ad
min
istra
tion
294,
911
4,31
8 2,
705
301,
934
298,
261
3,67
3 98
,8%
27
6,42
6 27
3,98
5
2.
Rur
al D
evel
opm
ent F
acilit
atio
n 10
,275
88
-
10,3
63
10,0
41
322
96,9
%
9,05
1 8,
977
3.
Trad
itiona
l Ins
titut
ion
Adm
inist
ratio
n 19
,235
(4
,406
) (4
00)
14,4
29
13,9
70
459
96,8
%
20,0
70
16,2
88
Tota
l for
sub
pro
gram
mes
32
4,42
1 -
2,30
5 32
6,72
6 32
2,27
2 4,
454
98,6
%
305,
547
299,
250
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
30
9,96
2 (5
00)
2,00
5 31
1,46
7 30
9,66
4 1,
803
99,4
%
292,
162
287,
055
Com
pens
atio
n of
em
ploy
ees
298,
408
- 2,
005
300,
413
299,
192
1,22
1 99
,6%
28
0,77
0 27
7,41
4
Sala
ries
and
wag
es
279,
501
476
2,00
5 28
1,98
2 28
1,75
3 22
9 99
,6%
26
3,28
1 26
0,72
8
Socia
l con
tribu
tions
18
,907
(4
76)
- 18
,431
17
,439
99
2 94
,6%
17
,489
16
,686
Goo
ds a
nd s
ervi
ces
11,5
54
(500
) -
11,0
54
10,4
71
583
94,7
%
11,3
92
9,63
6
Min
or a
sset
s 23
8 (5
5)
- 18
3 13
1 52
71
,6%
18
0 90
Cat
erin
g: D
epar
t. ac
tivitie
s 70
7 (9
) -
698
665
33
95,3
%
586
489
Com
mun
icatio
n 5
(5)
- -
- -
- -
-
Con
sulta
nts:
Bus
ines
s an
d ad
visor
y se
rvice
s 2,
404
82
- 2,
486
2,46
2 24
99
,0%
2,
355
2,25
8
Con
tract
ors
- -
- -
- -
- 30
30
Ente
rtain
men
t 21
(1
) -
20
14
6 75
,0%
18
14
Con
sum
able
sup
plie
s 14
4 57
-
201
185
16
92,0
%
182
169
Con
sum
able
: St
atio
nery
, pr
intin
g an
d of
fice
supp
lies
360
(250
) -
110
80
30
72,7
%
529
459
Prop
erty
pay
men
ts
420
80
- 50
0 49
9 1
99,8
%
350
347
Trav
el a
nd s
ubsis
tenc
e 4,
973
234
- 5,
207
4,85
0 35
7 93
.1%
4,
636
4,21
6
Trai
ning
and
dev
elop
men
t 60
9 (5
75)
- 34
34
-
100,
0%
725
216
152
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
Prog
ram
me
4: T
radi
tiona
l Ins
titut
iona
l Man
agem
ent
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Ope
ratin
g pa
ymen
ts
210
(16)
-
194
176
18
90,7
%
341
125
Venu
es a
nd fa
cilitie
s 46
3 (2
2)
- 44
1 39
6 45
89
,8%
43
6 27
8
Ren
tal a
nd h
iring
1,
000
(20)
-
980
979
1 99
,9%
1,
024
945
Inte
rest
and
rent
on
land
-
- -
- 1
(1)
- -
5
Inte
rest
-
- -
- 1
(1)
- -
5
Tran
sfer
s an
d su
bsid
ies
8,
410
500
300
9,21
0 8,
461
749
91,9
%
7,05
6 6,
968
Hous
ehol
ds
7,
056
6,96
8
Socia
l ben
efits
8,
410
500
300
9,21
0 8,
461
749
91,9
%
7,05
6 6,
968
Paym
ents
for c
apita
l ass
ets
6,04
9 -
- 6,
049
4,14
7 1,
902
68,6
%
6,32
9 4,
134
Build
ings
and
oth
er fi
xed
stru
ctur
es
6,04
9 -
- 6,
049
4,14
7 1,
902
68,6
%
6,25
1 4,
056
O
ther
fixe
d st
ruct
ures
6,
049
- -
6,04
9 4,
147
1,90
2 68
,6%
6,
251
4,05
6
Mac
hine
ry a
nd e
quip
men
t -
- -
- -
- -
78
78
Oth
er m
achi
nery
and
equ
ipm
ent
- -
- -
- -
- 78
78
Paym
ents
for f
inan
cial
ass
ets
- -
- -
- -
- -
1,09
3
Tota
l 32
4,42
1 -
2,30
5 32
6,72
6 32
2,27
2 4,
454
98,6
%
305,
547
299,
250
153
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
4. 1
: Tr
aditi
onal
Res
ourc
e Ad
min
istra
tion
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
28
0,45
2 3,
818
2,40
5 28
6,67
5 28
5,65
3 1,
022
99,6
%
263,
041
261,
790
Com
pens
atio
n of
em
ploy
ees
272,
428
4,40
6 2,
405
279,
239
278,
337
902
99,7
%
255,
188
255,
131
Sala
ries
and
wag
es
256,
537
4,40
6 2,
405
263,
348
263,
346
2 10
0,0%
24
1,07
1 24
1,01
4
Socia
l con
tribu
tions
15
,891
-
- 15
,891
14
,991
90
0 94
,3%
14
,117
14
,117
Goo
ds a
nd s
ervi
ces
8,02
4 (5
88)
- 7,
436
7,31
5 12
1 98
,4%
7,
853
6,65
4
Min
or a
sset
s 20
0 (5
5)
- 14
5 13
1 14
90
,3%
18
0 90
Cat
erin
g: D
epar
t. ac
tivitie
s 38
9 31
-
420
395
25
94,0
%
330
280
Con
sulta
nts:
Bus
ines
s &
adv.
2,
404
82
- 2,
486
2,46
2 24
99
,0%
2,
355
2,25
8
Con
tract
ors
- -
- -
- -
- 30
30
Ente
rtain
men
t 5
- -
5 4
1 80
,0%
5
3
Con
sum
able
sup
plie
s 12
8 57
-
185
185
- 10
0%
164
164
Con
sum
able
: St
atio
nery
, pr
intin
g an
d of
fice
supp
lies
309
(250
) -
59
57
2 96
,6%
42
1 41
0
Prop
erty
pay
men
ts
420
80
- 50
0 49
9 1
99,8
%
350
347
Trav
el a
nd s
ubsis
tenc
e 2,
021
77
- 2,
098
2,07
6 22
99
,0%
1,
903
1,71
7
Trai
ning
and
dev
elop
men
t 60
9 (5
75)
- 34
34
-
100,
0%
725
216
Ope
ratin
g pa
ymen
ts
181
(16)
-
165
153
12
92,7
%
123
33
Venu
es a
nd fa
cilitie
s 35
8 1
- 35
9 34
0 19
94
,7%
24
3 16
1
Ren
tal a
nd h
iring
1,
000
(20)
-
980
979
1 99
,9%
1,
024
945
Inte
rest
and
rent
on
land
-
- -
- 1
(1)
- -
5
Inte
rest
-
- -
- 1
(1)
- -
5
Tran
sfer
s an
d su
bsid
ies
8,
410
500
300
9,21
0 8,
461
749
91,9
%
7,05
6 6,
968
S
ocia
l ben
efits
8,
410
500
300
9,21
0 8,
461
749
91,9
%
7,05
6 6,
968
154
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
4. 1
: Tr
aditi
onal
Res
ourc
e Ad
min
istra
tion
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Paym
ents
for c
apita
l ass
ets
6,04
9 -
- 6,
049
4,14
7 1,
902
68,6
%
6,32
9 4,
134
Build
ings
&ot
her f
ixed
stru
ctur
e 6,
049
- -
6,04
9 4,
147
1,90
2 68
,6%
6,
251
4,05
6
Oth
er fix
ed s
truct
ures
6,
049
- -
6,04
9 4,
147
1,90
2 68
,6%
6,
251
4,05
6
Mac
hine
ry a
nd e
quip
men
t -
- -
- -
- -
78
78
Oth
er m
achi
nery
& e
quip
men
t -
- -
- -
- -
78
78
Paym
ents
for f
inan
cial
ass
ets
- -
- -
- -
- -
1,09
3
TOTA
L 29
4,91
1 4,
318
2,70
5 30
1,93
4 29
8,26
1 3,
673
98,8
%
276,
426
273,
985
4.2:
Rur
al D
evel
opm
ent f
acili
tatio
n 20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
10
,275
88
-
10,3
63
10,0
41
322
96,9
%
9,05
1 8,
977
Com
pens
atio
n of
em
ploy
ees
9,15
3 -
- 9,
153
8,83
8 31
5 96
,6%
7,
873
7,80
8
Sala
ries
and
wag
es
7,94
9 -
- 7,
949
7,72
6 22
3 97
,2%
6,
823
6,79
6
Socia
l con
tribu
tions
1,
204
- -
1,20
4 1,
112
92
92,4
%
1,05
0 1,
012
Goo
ds a
nd s
ervi
ces
1,12
2 88
-
1,21
0 1,
203
7 99
,4%
1,
178
1,16
9
Cat
erin
g: D
epar
tmen
tal a
ctivi
ties
31
- -
31
26
5 83
,9%
31
31
Com
mun
icatio
n 5
(5)
- -
- -
- -
-
Ente
rtain
men
t 3
(1)
- 2
2 -
100,
0%
- -
Con
sum
able
sup
plie
s
- -
155
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
4.2:
Rur
al D
evel
opm
ent f
acili
tatio
n 20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Con
sum
able
: St
atio
nery
, pr
intin
g an
d of
fice
supp
lies
6 -
- 6
6 -
100,
0%
23
23
Trav
el a
nd s
ubsis
tenc
e 1,
044
117
- 1,
161
1,16
0 1
99,9
%
1,06
5 1,
064
Ope
ratin
g pa
ymen
ts
10
- -
10
9 1
90,0
%
- -
Venu
es a
nd fa
cilitie
s 23
(2
3)
- -
-
- 59
51
TOTA
L 10
,275
88
-
10,3
63
10,0
41
322
96,9
%
9,05
1 8,
977
4.3:
Tra
ditio
nal I
nstit
utio
n Ad
min
istra
tion
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
19
,235
(4
,406
) (4
00)
14,4
29
13,9
70
459
96,8
%
20,0
70
16,2
88
Com
pens
atio
n of
em
ploy
ees
16,8
27
(4,4
06)
(400
) 12
,021
12
,017
4
100%
17
,709
14
,475
Sala
ries
and
wag
es
15,0
15
(3,9
30)
(400
) 10
,685
10
,681
4
100%
15
,387
12
,918
Socia
l con
tribu
tions
1,
812
(476
) -
1,33
6 1,
336
- 10
0%
2,32
2 1,
557
Goo
ds a
nd s
ervi
ces
2,40
8 -
- 2,
408
1,95
3 45
5 81
,1%
2,
361
1,81
3
Min
or a
sset
s 38
-
- 38
-
38
-
-
Cat
erin
g: D
epar
tmen
tal a
ctivi
ties
287
(40)
-
247
244
3
98,8
%
225
178
Ente
rtain
men
t 13
-
- 13
8
5 61
,5%
13
11
Con
sum
able
sup
plie
s 16
-
- 16
-
16
- 18
5
Con
sum
able
: St
atio
nery
, pr
intin
g an
d of
fice
supp
lies
45
- -
45
17
28
37,8
%
85
26
156
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
4.3:
Tra
ditio
nal I
nstit
utio
n Ad
min
istra
tion
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Trav
el a
nd s
ubsis
tenc
e 19
08
40
- 1,
948
1,61
4 33
4 82
,9%
1,
668
1,43
5
Ope
ratin
g pa
ymen
ts
19
- -
19
14
5 73
,7%
21
8 92
Venu
es a
nd fa
cilitie
s 82
-
- 82
56
26
68
,3%
13
4 66
TOTA
L 19
,235
(4
,406
) (4
00)
14,4
29
13,9
70
459
96,8
%
20,0
70
16,2
88
Prog
ram
me
5: H
ouse
of T
radi
tiona
l Lea
ders
20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Sub
prog
ram
me
1.
Hou
se o
f Tra
ditio
nal L
eade
rs
15,2
47
(1,2
91)
- 13
,956
13
,942
14
99
,9%
17
,497
16
,851
2.
Com
mitt
ees
and
Loca
l Hou
ses
of T
radi
tiona
l Lea
ders
14
,139
1,
291
580
16,0
10
15,9
86
24
99,9
%
10,1
14
10,0
67
Tota
l for
sub
pro
gram
mes
29
,386
-
580
29,9
66
29,9
28
38
99,9
%
27,6
11
26,9
18
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
29
,386
-
580
29,9
66
29,9
28
38
99,9
%
27,0
81
26,7
76
Com
pens
atio
n of
em
ploy
ees
18,8
38
(178
) 40
0 19
,060
19
,060
-
100%
18
,541
18
,458
Sala
ries
and
wag
es
15,8
58
258
400
16,5
16
16,5
16
- 10
0%
16,0
78
16,0
70
Socia
l con
tribu
tions
2,
980
(436
) -
2,54
4 2,
544
- 10
0%
2,46
3 2,
388
Goo
ds a
nd s
ervi
ces
10,5
48
178
180
10,9
06
10,8
68
38
99,7
%
8,54
0 8,
318
Adm
inist
rativ
e fe
es
10
7
Adve
rtisin
g 55
0 (1
75)
- 37
5 37
4 1
99,7
%
280
280
Min
or a
sset
s
30
29
157
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
Prog
ram
me
5: H
ouse
of T
radi
tiona
l Lea
ders
20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Cat
erin
g: D
epar
tmen
tal a
ctivi
ties
1,15
2 21
8 -
1,37
0 1,
367
3 99
,8%
82
1 79
5
Com
mun
icatio
n 1,
761
(753
) -
1,00
8 1,
004
4 99
,6%
31
6 31
1
Com
pute
r ser
vices
30
-
- 30
27
3
90,0
%
Con
sulta
nts:
Bus
ines
s an
d ad
visor
y se
rvice
s 96
3 43
8 -
1,40
1 1,
399
2 99
,9%
1,
272
1,25
3
Con
tract
ors
63
42
- 10
5 10
4 1
99,0
%
- -
Ente
rtain
men
t 60
-
- 60
53
7
88,3
%
22
17
Flee
t ser
vices
( inclu
ding
gov
ernm
ent
mot
or T
rans
port)
7
- -
7 7
- 10
0%
100
69
Con
sum
able
sup
plie
s 58
38
-
96
96
- 10
0%
334
254
Con
sum
able
: St
atio
nery
, pr
intin
g an
d of
fice
supp
lies
130
(18)
-
112
111
1 99
,1%
30
1 27
5
Tran
spor
t pr
ovid
ed:
Dep
artm
enta
l ac
tivity
16
8 (6
) -
162
162
- 10
0%
5 5
Trav
el a
nd s
ubsis
tenc
e 3,
840
550
180
4,57
0 4,
560
10
99,8
%
4,59
2 4,
581
Ope
ratin
g pa
ymen
ts
741
(247
) -
494
488
6 98
,8%
32
7 32
7
Venu
es a
nd fa
cilitie
s 94
70
-
164
164
- 10
0%
11
-
Ren
tal a
nd h
iring
93
1 21
-
952
952
- 10
0%
119
114
Paym
ents
for c
apita
l ass
ets
- -
- -
- -
- 53
0 14
2
Mac
hine
ry a
nd e
quip
men
t -
- -
- -
- -
530
142
Oth
er m
achi
nery
and
equ
ipm
ent
- -
- -
- -
- 53
0 14
2
Tota
l 29
,386
-
580
29,9
66
29,9
28
38
99,9
%
27,6
11
26,9
18
158
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
5.1
Hous
e of
Tra
ditio
nal l
eade
rs
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
15
,247
(1
,291
) -
13,9
56
13,9
42
14
99,9
%
16,9
67
16,7
09
Com
pens
atio
n of
em
ploy
ees
13,7
29
(1,1
58)
- 12
,571
12
,571
-
100%
14
,332
14
,290
Sala
ries
and
wag
es
11,4
87
(697
) -
10,7
90
10,7
90
- 10
0%
12,5
10
12,5
10
Socia
l con
tribu
tions
2,
242
(461
) -
1,78
1 1,
781
- 10
0%
1,82
2 1,
780
Goo
ds a
nd s
ervi
ces
1,51
8 (1
33)
- 1,
385
1,37
1 14
99
,0%
2,
635
2,41
9
Adm
inist
rativ
e fe
es
- -
- -
- -
- 10
7
Adve
rtisin
g 30
(3
0)
- -
- -
- 10
0 10
0
Min
or A
sset
s -
- -
- -
- -
30
29
Cat
erin
g: D
epar
tmen
tal a
ctivi
ties
105
30
- 13
5 13
2 3
97,8
%
120
94
Com
mun
icatio
n -
- -
- -
- -
240
235
Com
pute
r ser
vices
30
-
- 30
27
3
90,0
%
- -
Con
sulta
nts:
Bus
ines
s an
d ad
visor
y se
rvice
s 20
2 1
- 20
3 20
2 1
99,5
%
308
289
Ente
rtain
men
t 30
-
- 30
23
7
76,7
%
20
15
Flee
t ser
vices
7
- -
7 7
- 10
0%
100
69
Con
sum
able
sup
plie
s 58
38
-
96
96
- 10
0%
334
254
Con
sum
able
: St
atio
nery
, pr
intin
g an
d of
fice
supp
lies
107
(18)
-
89
89
- 10
0%
168
142
Tran
spor
t pr
ovid
ed:
Dep
artm
enta
l ac
tivity
-
- -
- -
- -
5 5
Trav
el a
nd s
ubsis
tenc
e 94
9 (1
54)
- 79
5 79
5 -
100%
1,
149
1,14
5
Venu
es a
nd fa
cilitie
s -
- -
- -
- -
11
-
Ren
tal a
nd h
iring
-
- -
- -
- -
40
35
Paym
ents
for c
apita
l ass
ets
- -
- -
- -
- 53
0 14
2
159
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
5.1
Hous
e of
Tra
ditio
nal l
eade
rs
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Oth
er m
achi
nery
and
equ
ipm
ent
- -
- -
- -
- 53
0 14
2
TOTA
L 15
,247
(1
,291
) -
13,9
56
13,9
42
14
99,9
%
17,4
97
16,8
51
5.2
COM
MM
ITTE
ES A
ND L
OCA
L HO
USE
OF
TRAD
ITIO
NAL
LEAD
ERS
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
14
,139
1,
291
580
16,0
10
15,9
86
24
99,9
%
10,1
14
10,0
67
Com
pens
atio
n of
em
ploy
ees
5,10
9 98
0 40
0 6,
489
6,48
9 -
100%
4,
209
4,16
8
S
alar
ies&
wag
es
4,37
1 95
5 40
0 5,
726
5,72
6 -
100%
3,
568
3,56
0
Socia
l con
tribu
tions
73
8 25
-
763
763
- 10
0%
641
608
Goo
ds a
nd s
ervi
ces
9,03
0 31
1 18
0 9,
521
9,49
7 24
99
,7
5,90
5 5,
899
Adve
rtisin
g 52
0 (1
45)
- 37
5 37
4 1
99,7
%
180
180
Cat
erin
g: D
epar
t. ac
tivitie
s 1,
047
188
- 1,
235
1,23
5 -
100%
70
1 70
1
Com
mun
icatio
n (G
&S)
1,76
1 (7
53)
- 1,
008
1,00
4 4
99,6
%
76
76
Con
sulta
nts:
Bus
ines
s an
d ad
visor
y se
rvice
s 76
1 43
7 -
1,19
8 1,
197
1 99
,9%
96
4 96
4
Con
tract
ors
63
42
- 10
5 10
4 1
99%
-
-
Ente
rtain
men
t 30
-
- 30
30
-
100%
2
2
Con
sum
able
: St
atio
nery
, pr
intin
g an
d of
fice
supp
lies
23
- -
23
22
1 95
,7%
13
3 13
3
Tran
spor
t pr
ovid
ed:
Dep
artm
enta
l ac
tivity
16
8 (6
) -
162
162
- 10
0%
- -
160
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
5.2
COM
MM
ITTE
ES A
ND L
OCA
L HO
USE
OF
TRAD
ITIO
NAL
LEAD
ERS
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Trav
el a
nd s
ubsis
tenc
e 2,
891
704
180
3,77
5 3,
765
10
99,7
%
3,44
3 3,
436
O
pera
ting
paym
ents
74
1 (2
47)
- 49
4 48
8 6
98,8
%
327
327
Venu
es a
nd fa
cilitie
s 94
70
-
164
164
- 10
0%
- -
Ren
tal a
nd h
iring
93
1 21
-
952
952
- 10
0%
79
79
TOTA
L 14
,139
1,
291
580
16,0
10
15,9
86
24
99,9
%
10,1
14
10,0
67
Dire
ct c
harg
es
2017
/18
2016
/17
Ad
just
ed
Appr
opria
tion
Shift
ing
of
Fund
s Vi
rem
ent
Fina
l Ap
prop
riatio
n Ac
tual
Ex
pend
iture
Va
rianc
e Ex
pend
iture
as
% o
f fin
al
appr
opria
tion
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Sub
prog
ram
me
1.
Mem
bers
rem
uner
atio
n 2,
182
(200
) -
1,98
2 1,
978
4 99
.8%
1,
971
1,90
2
Tota
l for
sub
pro
gram
mes
2,
182
(200
) -
1,98
2 1,
978
4 99
.8%
1,
971
1,90
2
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
2,
182
(200
) -
1,98
2 1,
978
4 99
.8%
1,
971
1,90
2
Com
pens
atio
n of
em
ploy
ees
2,18
2 (2
00
- 1,
982
1,97
8 4
99.8
%
1,97
1 1,
902
Sala
ries
and
wag
es
1,91
0 (1
95)
- 1,
715
1,71
1 4
99.8
%
1,97
1 1,
645
Socia
l con
tribu
tions
27
2 (5
) -
267
267
- 10
0%
- 25
7
TOTA
L 2,
182
(200
) -
1,98
2 1,
978
4 99
,8%
1,
971
1,90
2
161
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
A
PP
RO
PR
IAT
ION
ST
AT
EM
EN
T -
fo
r th
e y
ear
en
ded
31 M
arc
h 2
018
2017
/18
Ann
ual F
inan
cial
Sta
tem
ents
- CO
GTA
EC
Dire
ct C
harg
es: M
embe
rs re
mun
erat
ion(
MEC
) 20
17/1
8 20
16/1
7
Adju
sted
Ap
prop
riatio
n Sh
iftin
g of
Fu
nds
Vire
men
t Fi
nal
Appr
opria
tion
Actu
al
Expe
nditu
re
Varia
nce
Expe
nditu
re
as %
of f
inal
ap
prop
riatio
n
Fina
l Ap
prop
riatio
n Ac
tual
ex
pend
iture
R'
000
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
R'00
0
Econ
omic
cla
ssifi
catio
n
Curre
nt p
aym
ents
2,
182
- -
1,98
2 1,
978
4 99
,8%
1,
971
1,90
2
Com
pens
atio
n of
em
ploy
ees
2,18
2 (2
00)
- 1,
982
1,97
8 4
99,8
%
1,97
1 1,
902
Sala
ries
and
wag
es
1,91
0 (1
95)
- 1,
715
1,71
1 4
99,8
%
1,97
1 1,
645
Socia
l con
tribu
tions
27
2 (5
) -
26
7 26
7 -
100%
-
257
TOTA
L 2,
182
(200
) -
1,98
2 1,
978
4 99
,8%
1,
971
1,90
2
162
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
NOTES TO THE APPROPRIATION STATEMENT - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
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 on Payments for financial assets to the Annual Financial Statements.
4. Explanations of material variances from amounts voted (after Shifting and virements): 4.1 Per programme Final
Appropriation Actual
Expenditure Variance R’000 Variance as a %
of Final Appropriation
R’000 R’000 R’000 R’000
Administration 251,268 243,432 7,836 3,1% Programme One: Spent 96.9% of its allocated budget resulting in a 3.1% under-expenditure. The details of under expenditure are as follows:-
Goods & Services: The under expenditure is due to late receipt of invoices relating to oil and fuel for White Fleet as well as Vodacom account for March 2018. Also savings were realized under Travel and Subsistence due to the implementation of Cost containment measures.
Capital Assets : The under-expenditure is caused by delays in the delivery of ordered GG vehicles from GFMS
Local Governance
299,160
295,492
3,668
1,2%
Programme Two spent 98.8 % at the end of the financial year. The details of under expenditure are as follows:-
Goods & Services: The under-expenditure is due to vigorous implementation of cost containment measures relating to travelling & subsistence.
Development & Planning
197,345
192,862
4,483
2,3%
Programme Three: Spent 97.7 % at the end of the financial year. The details of under expenditure are as follows:-:
Goods & Services: The under-expenditure is due to vigorous implementation of cost containment measures relating to travelling & subsistence costs.
Transfers & Subsidies: The under-expenditure is due to non-submission of invoices by Amathole District Municipality for water carting to drought stricken areas at Mnquma Local Municipality.
Capital Assets: The under-expenditure is due to non-delivery of furniture for the Disaster Management Centre.
Traditional Institutional Man.
326,726 322,272 4,454 1,4%
Programme Four: Spent 98.6 % at the end of the financial year. The details of under expenditure are as follows:-
Compensation of Employees: The minimal under-expenditure is due to delays in the filling of replacement funded posts of Traditional Leaders that was caused by claims and disputes within the Traditional Leadership.
Goods & Services: The under-expenditure is due to vigorous implementation of cost containment measures relates to travelling & subsistence costs.
Transfers & Subsidies: The under-expenditure relates to gratuities of Traditional Leaders of which delays were caused by late or non-submission of outstanding documents by beneficiaries.
Capital Assets: The under-expenditure is due to non-receipt of invoices relating to the construction of Traditional Councils.
163
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
NOTES TO THE APPROPRIATION STATEMENT - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
House of Traditional Leaders
29,966
29,928 38 0,1%
Programme Five spent 99.9 % at the end of the financial year. The details of under expenditure are as follows:-
Goods & Services: The minimal under-expenditure relates to travelling & subsistence costs.
4.2 Per economic classification Final
Appropriation Actual
Expenditure Variance Variance as a %
of Final Appropriation
R’000 R’000 R’000 R’000 Current payments Compensation of employees 765,465 763,355 2,110 0,3% Goods and services 112,010 101,025 10,985 9,8% Interest and rent on land - 9 (9) -
Transfers and subsidies
Provinces and municipalities 181,141 178,158 2,983 1,6% Departmental agencies and accounts 160 160 - 0.0% Households 15,478 14,561 917 5,9%
Payments for capital assets Buildings and other fixed structures 6,049 4,147 1,902 31,4% Machinery and equipment 20,653 18,850 1,803 8,7% Software and other intangible asset 3,509 3,509 - -
Payments for financial assets - 212 (212) -
The department spent 98.1% by the end of the financial year. The details of under expenditure are as follows:-
Compensation of Employees: The minimal under-expenditure is due to delays in the filling of replacement funded posts of Traditional Leaders that is caused by claims and disputes within the families of Traditional Leaders.
Goods & Services: The under-expenditure is due to vigorous implementation of cost containment measures relating to travelling & subsistence costs and late receipt of invoices relating to oil and fuel for White Fleet as well as Vodacom account for March 2018. Also savings were realized under Travel and Subsistence due to the implementation of Cost containment measures.
Transfers & Subsidies: The under-expenditure is due to non-submission of invoices by the Amathole District Municipality for water carting to drought stricken areas of Mnquma Municipality. There were also delays in the processing of leave gratuities due to non-submission of outstanding documents by beneficiaries.
Capital Assets: The under-expenditure is due to non-receipt of invoices relating to the construction of Traditional Councils.
4.3 Per Conditional Grant Final Appropriation
Actual Expenditure
Variance Variance as a % of Final
Appropriation R’000 R’000 R’000 R’000
Expanded Public Works Programme 2,036 2,035 1 0,0%
No significant deviation regarding conditional grant funding
164
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
STATEMENT OF FINANCIAL PERFORMANCE - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
Note 2017/18 2016/17 R'000 R'000 REVENUE
Annual appropriation 1 1,102,483 1,006,506 Statutory appropriation 2 1,982 1,971 Departmental revenue 3 - 205 TOTAL REVENUE 1,104,465 1,008,682 EXPENDITURE
Current expenditure Compensation of employees 4 763,355 700,597 Goods and services 5 101,025 115,715 Interest and rent on land 6 9 161 Total current expenditure 864,389 816,473 Transfers and subsidies Transfers and subsidies 8 192,879 115,682 Total transfers and subsidies 192,879 115,682 Expenditure for capital assets Tangible assets 9 22,997 13,656 Intangible assets 9 3,509 - Total expenditure for capital assets 26,506 13,656 Unauthorised expenditure approved without funding 10 - 5,843 Payments for financial assets 7 212 7,721 TOTAL EXPENDITURE 1,083,986 959,375 SURPLUS FOR THE YEAR 20,479 49,307
Reconciliation of Net Surplus/(Deficit) for the year Voted funds 20,479 49,102
Annual appropriation 20,478 49,089 Conditional grants 1 13
Departmental revenue and NRF Receipts 15 - 205 SURPLUS/(DEFICIT) FOR THE YEAR 20,479 49,307
165
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
STATEMENT OF FINANCIAL POSITION - as at 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
Notes 2017/18 2016/17 R'000 R'000 ASSETS
Current assets 19,516 49,902
Cash and cash equivalents 11 19,458 49,352 Prepayments and advances 12 - 25 Receivables 13 58 525
Non-current assets 1,714 1,573
Receivables 13 1,714 1,573 TOTAL ASSETS 21,230 51,475 LIABILITIES
Current liabilities 21,230 51,466 Voted funds to be surrendered to the Revenue Fund 14 20,479 49,102 Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund
15 234 378
Payables 17 517 1,986 Non-current liabilities
Payables 17 - 9 TOTAL LIABILITIES 21,230 51,475
166
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
CASH FLOW STATEMENT - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
Notes 2017/18 2016/17 R'000 R’000 CASH FLOWS FROM OPERATING ACTIVITIES
Receipts 1,105,881 1,010,737 Annual appropriated funds received 1.1 1,102,483 1,006,506 Statutory appropriated funds received 2 1,982 1,971 Departmental revenue received 3 1,416 2,260
Net (decrease) /increase in working capital (1,118) 13,386 Surrendered to Revenue Fund (50,662) (8,885) Current payments (864,380) (822,155) Interest paid 6 (9) (161) Payments for financial assets (212) (7,721) Transfers and subsidies paid (192,879) (115,682) Net cash flow available from operating activities 18 (3,379) 69,519 CASH FLOWS FROM INVESTING ACTIVITIES
Payments for capital assets 9 (26,506) (13,656) Net cash flows from investing activities (26,506) (13,656) CASH FLOWS FROM FINANCING ACTIVITIES
(decrease) in non-current payables (9) (10) Net cash flows from financing activities (9) (10) Net (decrease) in cash and cash equivalents (29,894) 55,853
Cash and cash equivalents at beginning of period 49,352 (6,501) Cash and cash equivalents at end of period 19 19,458 49,352
167
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
ACCOUNTING POLICIES - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
PART A: ACCOUNTING POLICIES Summary of significant accounting policies The financial statements have been prepared in accordance with the following policies, which have been applied consistently 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 financial 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 Comparative information
5.1 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.
5.2 Current year comparison with budget A comparison between the approved, final budget and actual amounts for each programme and economic classification is included in the appropriation statement.
6 Revenue
6.1 Appropriated funds Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory 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.
6.2 Departmental revenue 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.
6.3 Accrued departmental revenue Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the Annual financial statements when:
it is probable that the economic benefits or service potential associated with the transaction will flow to the department; and
the amount of revenue can be measured reliably. The accrued revenue is measured at the fair value of the consideration receivable. Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents. Write-offs are made according to the department’s debt write-off policy.
7 Expenditure
7.1 Compensation of employees
7.1.1 Salaries and wages Salaries and wages are recognised in the statement of financial performance on the date of payment.
168
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
ACCOUNTING POLICIES - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
7.1.2 Social contributions Social contributions made by the department in respect of current employees are recognised in the statement of financial 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.
7.2 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.
7.3 Accruals and Payables not recognised Accruals and payables not recognised are recorded in the notes to the financial statements at cost at the reporting date.
7.4 Leases
7.4.1 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.
7.4.2 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 between the capital and interest portions. Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of: cost, being the fair value of the asset; or the sum of the minimum lease payments made, including any payments made to acquire ownership at the end of
the lease term, excluding interest.
8 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 of cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.
9 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.
10 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.
11 Financial assets
11.1 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 assets. At the reporting date, a department shall measure its financial assets at cost, less amounts already settled or written-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.
11.2 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.
12 Payables Loans and payables are recognised in the statement of financial position at cost.
13 Capital Assets
13.1 Immovable capital assets Immovable assets reflected in the asset register of the department are recorded in the notes to the financial statements at cost or fair value where the cost cannot be determined reliably. Immovable assets acquired in a non-exchange
169
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
ACCOUNTING POLICIES - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
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.
13.2 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. Subsequent expenditure that is of a capital nature forms part of the cost of the existing asset when ready for use.
13.3 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 commences 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.
13.4 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-progress 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.
14 Provisions and Contingents
14.1 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 at the best estimate of the funds required to settle the present obligation at the reporting date.
14.2 Contingent liabilities Contingent liabilities are recorded in the notes to the financial statements when there is a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department or when there is a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably.
14.3 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 outflow of cash.
15 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.
16 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.
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Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or transferred 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.
17 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-recognised when settled or subsequently written-off as irrecoverable.
18 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 cumulative 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.
19 Events after the reporting date Events after the reporting date that are classified as adjusting events have been accounted for in the financial statements. 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. No events after the reporting date were identified by management that would affect the operations of the department or the results of those operations significantly.
20 Departures from the MCS requirements The management has concluded that the financial statements present fairly the department’s primary and secondary information; that the department complied with the Modified Cash Standard to achieve fair presentation and no departure from the MCS requirements during the financial year.
21 Recoverable revenue Amounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. Amounts are either transferred to the Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off.
22 Employee Benefits The value of each major class of employee benefit (accruals, payables not recognised and provisions) is disclosed in the Employee Benefits note. The short-term employee benefits that give rise to a present legal or constructive obligation are disclosed in notes to the financial statements. These amounts are not recognised in the statement of financial position or in the statement of financial performance. The long-term benefits relating to long services awards cannot be measured reliable in the long run.
23 Key Management Personnel Compensation paid to key management personnel including their family members where relevant, is included in the notes to the financial statements.
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1. Annual Appropriation 1.1 Annual Appropriation Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for Provincial Departments:
The department requested and received all its appropriated funds amounting to R 1 104 465 000 which includes conditional grants from the Provincial Treasury for the year ended 31 March 2018. The amount reflected above in the note 1.1 exclude the MEC's budget of R 1,982 000.
1.2 Conditional grants Notes 2017/18 2016/17 R’000 R’000 Total grants received 33 2,036 2,000
Provincial grants included in Total Grants received 2,036 2,000
The conditional grants are included in the amounts in note 1.1 above. The MEC amount has been excluded from Note 1.1 as it has a separate Note number 2.
2. Statutory Appropriation
2017/18 2016/17 R’000 R’000
Members’ remuneration (MEC) 1,982 1,971 Total 1,982 1,971 Actual Statutory Appropriation received 1,982 1,971
3. Departmental revenue Notes 2017/18 2016/17 R’000 R’000 Sales of goods and services other than capital assets 3.1 987 906 Transactions in financial assets and liabilities 3.2 429 1,354 Total revenue collected 1,416 2,260 Less: Own revenue included in appropriation 15 1,416 2,055 Departmental revenue collected - 205
The department collected a revenue amounting to R 1 416 000 during the year ended 31 March 2018. This revenue collected is less than the budgeted revenue included in appropriation of R 2 178 000. There is under collection of R 762 000 for the year ended 31 March 2018.
2017/18 2016/17 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 1. Administration 249,286 249,286 - 243,242 243,242 2. Local Governance 299,160 299,160 - 282,388 282,388 3. Development & plan. 197,345 197,345 - 147,717 147,717 4.Traditional Inst. Man. 326,726 326,726 - 305,547 305,547 5. House of Trad. Lead. 29,966 29,966 - 27,612 27,612
Total 1,102,483 1,102,483 - 1,006,506 1,006,506
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3.1 Sales of goods and services other than capital assets
Notes 2017/18 2016/17 3 R’000 R’000 Sales of goods and services produced by the department 987 906
Other sales 987 906
Total 987 906 3.2 Transactions in financial assets and liabilities
Notes 2017/18 2016/17 3 R’000 R’000 Other Receipts including Recoverable Revenue 429 1,354 Total 429 1,354
4. Compensation of employees
4.1 Salaries and Wages Notes 2017/18 2016/17 R’000 R’000 Basic salary 598,555 543,672 Performance award 7,251 8,342 Service Based 333 454 Compensative/circumstantial 20,924 2,002 Other non-pensionable allowances 53,199 69,094 Total 680,262 623,564
4.2 Social contributions
Notes 2017/18 2016/17 R’000 R’000 Employer contributions Pension 53,214 48,321 Medical 29,757 28,609 UIF 1 1 Bargaining council 121 102 Total 83,093 77,033
Total compensation of employees 763,355 700,597 Number of employees 2,781 2,709
The increase in number of employees is due to the recruitment drive the department has embarked on to fill vacant funded posts.
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5. Goods and services Notes 2017/18 2016/17
R’000 R’000 Administrative fees 14 67
Advertising 1,775 903
Minor assets 5.1 1,513 1,589
Bursaries (employees) 356 624
Catering 3,272 2,512
Communication 12,584 21,992
Computer services 5.2 5,274 9,294
Consultants: Business and advisory services 6,280 5,077
Legal services 4,447 12,507
Contractors 2,348 2,284
Agency and support / outsourced services 838 61
Entertainment 180 166
Audit cost – external 5.3 5,281 4,977
Fleet services 4,831 69
Consumables 5.4 2,237 7,823
Operating leases 4,023 4,862
Property payments 5.5 1,938 1,653
Rental and hiring 1,961 1,135
Transport provided as part of depart. Activities 162 5
Travel and subsistence 5.6 33,426 29,500
Venues and facilities 4,419 5,173
Training and development 1,268 1,399
Other operating expenditure 5.7 2,598 2,043
Total 101,025 115,715
The significant decrease in goods and services is as a result of implementation of cost containment measures issued by Treasury in these following items computer services, communication, operating leases, consumables, venues and facilities. There were no outstanding payments relating to previous years on legal costs which resulted to a decrease in the current year.
5.1 Minor assets
Notes 2017/18 2016/17 5 R’000 R’000 Tangible assets Machinery and equipment 1,513 1,589 Total 1,513 1,589
5.2 Computer services
Notes 2017/18 2016/17 5 R’000 R’000 SITA computer services 1,283 8,965 External computer service providers 3,991 329 Total 5,274 9,294
5.3 Audit cost – External
Notes 2017/18 2016/17 5 R’000 R’000 Regularity audits 5,281 4,977 Total 5,281 4,977
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5.4 Consumables Notes 2017/18 2016/17
5 R’000 R’000 Consumable supplies 646 5,843
Uniform and clothing 118 339 Household supplies 165 344 IT consumables 173 116 Other consumables 190 5,044
Stationery, printing and office supplies 1,591 1,980 Total 2,237 7,823
The other consumables item are made of the following items: Cons Mat & Sup: Electrical Spares, Cons Supp: Gifts and Awards, Cons Supp: Notice Boards & Signs, Cons Mat & Sup: Garden & Farm Sup, and Cons Mat & Sup: Hardware
5.5 Property payments
Notes 2017/18 2016/17 5 R’000 R’000 Municipal services 499 371 Property maintenance and repairs 1,439 1,282 Total 1,938 1,653
5.6 Travel and subsistence
Notes 2017/18 2016/17 5 R’000 R’000 Local 33,426 29,500 Total 33,426 29,500
5.7 Other operating expenditure
Notes 2017/18 2016/17 5 R’000 R’000 Professional bodies, membership and subscription fees 23 6 Resettlement costs 652 88 Other 1,923 1,949 Total 2,598 2,043
Other Operating Expenditure: ‘’Other’’:-
The amount disclosed under "Other" relates to Printing and Publication Services (R1, 141m) and Insurance Premium for motor vehicle for MEC & Traditional Leaders (R 767 000). R15 000 for printer warranty.
6. Interest and rent on land 2017/18 2016/17 R’000 R’000 Interest paid 9 161 Total 9 161
An amount of R9 000 for interest paid relates to:-
TELKOM for R7, 571.00. ESKOM for R183.00 and R876.00 respectively.
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NOTES TO THE ANNUAL FINANCIAL STATEMENTS - for the year ended 31 March 2018
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7. Payments for financial assets Notes 2017/18 2016/17 R’000 R’000
Other material loss written off 7.2 - 7,493 Debts written off 7.1 212 228 Total 212 7,721
7.1 Debts written off
Notes 2017/18 2016/17 7 R’000 R’000
Staff debts Debts irrecoverable written off 212 228 Total 212 228
Debts written off: An amount of R212 000 was written off during the year under review relating to staff debts which were uneconomical to recover. It was written off against the departmental savings.
7.2 Other material losses written off Notes 2017/18 2016/17
7 R’000 R’000 Nature of losses
Relates to amount written off owed by Department of Human Settlements
- 7,493
Total - 7,493
8. Transfers and subsidies 2017/18 2016/17 R’000 R’000 Notes Provinces and municipalities 33, Annex 1A 178,158 100,867 Departmental agencies and accounts Annexure 1B 160 - Households Annexure 1G 14,561 14,815 Total 192,879 115,682
Transfers to ESKOM on behalf of municipalities: Included in Provinces and municipalities amount of R178, 158 million above are transfers made to bailout Municipalities that are struggling to pay ESKOM debt (for recently amalgamated municipalities). The amount paid to ESKOM amounts to R70 million. The following municipalities were assisted by the Department: (a) Walter Sisulu Municipality-: R 24,918,000 (Gazette No. 3805, dated 1 March 2018) (b) Raymond Mhlaba Municipality-: R11,361,000(Gazette No. 3805, dated 1 March 2018) (c) Dr. Bayer’s Naude-: R 3,721, 000. (Gazette No. 3805, dated 1 March 2018) (d) Walter Sisulu Municipality: - R 30 Million (Gazette No. 4003 date 26 February 2018)
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NOTES TO THE ANNUAL FINANCIAL STATEMENTS - for the year ended 31 March 2018
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9. Expenditure for capital assets Notes 2017/18 2016/17 R’000 R’000 Tangible assets 22,997 13,656 Buildings and other fixed structures 32 4,147 4,992 Machinery and equipment 30.1 18,850 8,664 Intangible assets 3,509 - Software 31 3,509 - Total 26,506 13,656
9.1 Analysis of funds utilised to acquire capital assets – 2017/18
Voted funds Aid assistance Total R’000 R’000 R’000 Tangible assets 22,997 - 22,997 Buildings and other fixed structures 4,147 - 4,147 Machinery and equipment 18,850 - 18,850 Intangible assets 3,509 - 3,509 Software 3,509 - 3,509 Total 26,506 - 26,506
Machinery & Equipment:- The machinery and equipment includes the finance leases relating to the rental of white fleet that have been capitalised amounting to R 5,438 million.
9.2 Analysis of funds utilised to acquire capital assets – 2016/17
Voted funds Aid assistance Total R’000 R’000 R’000 Tangible assets 13,656 - 13,656 Buildings and other fixed structures 4,992 - 4,992 Machinery and equipment 8,664 - 8,664 Total 13,656 - 13,656
9.3 Finance lease expenditure included in Expenditure for Capital Assets
Notes 2017/18 2016/17 R’000 R’000 Tangible assets Machinery and equipment 5,438 4,325 Total 5,438 4,325
Finance Lease Expenditure:- The capital assets expenditure includes finance lease for motor vehicles leased from the Government Fleet Management Services (GFMS). The total amount paid is R 5,438 million for the year ended 31 March 2018.
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10. Unauthorised expenditure 10.1 Reconciliation of unauthorised expenditure
2017/18 2016/17 R’000 R’000 Opening balance - 5,843 Less: Write-off of amounts approved by Legislature without funding - (5,843) Current - (5,843) Closing balance - -
11. Cash and cash equivalents Notes 2017/18 2016/17 R’000 R’000 Consolidated Paymaster General Account 19,458 49,352 Total 19,458 49,352
12. Prepayments and advances Notes 2017/18 2016/17 R’000 R’000 Staff Advances - 10 Travel and subsistence - 15 Total - 25
13. Receivables 2017/18 2016/17
Current Non-current Total Current Non-current Total
Note
R’000 R’000 R’000 R’000 R’000 R’000
Recoverable expenditure
13.3 - - - 20 - 20
Staff debt 13.1 53 1,714 1,767 501 1,573 2,074 Other debtors 13.2 5 - 5 4 - 4 Total 58 1,714 1,772 525 1,573 2,098
The debt account is being reduced by monthly instalments mainly from current employees and leave gratuities on employees leaving the public service for various reasons. There is a significant reduction in debts compared to previous financial year.
13.1 Staff debt
Notes 2017/18 2016/17 13 R’000 R’000 Debt Account: Staff Debt 1,767 2,074 Total 1,767 2,074
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13.2 Other debtors Notes 2017/18 2016/17 13 R’000 R’000 Sal: Tax debt: CA 5 4 Total 5 4
13.3 Recoverable expenditure (disallowance accounts)
Notes 2017/18 2016/17 13 R’000 R’000 Disallowance Damages and Losses: Recover: CA - 20 Total - 20
13.4 Impairment of receivables
Notes 2017/18 2016/17 13 R’000 R’000 Estimate of impairment of receivables 1,109 1,199 Total 1,109 1,199
Correction of error:- The department made a correction of error regarding the classification of debts more than 3 years owed by debtors. These debts were incorrectly classified under provisions instead of impairment in receivables. The amounts were moved from Note 29(provision) to Note 13(receivable). Estimate of impairment:- These debts are likely not to be recovered by the department as no future benefit will be derived from them in future. The estimate of impairment was raised for 2017/18 financial year and retrospectively for 2016/17 financial year (comparative).
14. Voted funds to be surrendered to the Revenue Fund 2017/18 2016/17 R’000 R’000 Opening balance 49,102 6,886 Transfer from statement of financial performance 20,479 49,102 Paid during the year (49,102) (6,886) Closing balance 20,479 49,102
The department will surrender R 20, 479 000 million to Provincial Treasury during 2018/19 financial year as unexpended voted funds as at 31 March 2018.
15. Departmental revenue to be surrendered to the Revenue Fund 2017/18 2016/17 R’000 R’000 Opening balance 378 117 Transfer from Statement of Financial Performance - 205 Own revenue included in appropriation 1,416 2,055 Paid during the year (1,560) (1,999) Closing balance 234 378
The department collected R 1 416 000 in own revenue as at 31 March 2018, an amount of R1, 560,000(includes R378 000 relating to 2016/17 own revenue collected and paid over in April 2017) was paid over to Provincial Revenue Fund during the year under review. The revenue accrual as at 31 March 2018 amounts to R234, 000 as per note 15 above.
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16. Payables – current Notes 2017/18 2016/17
R’000 R’000
Other payables 16.1 517 1,986
Total 517 1,986
16.1 Other payables
Note 2017/18 2016/17 16 R’000 R’000 Debt Receivable Income: CA 267 634 Debt Receivable Interest: CA 169 124 Sal:GEHS Refund Control Account: CL 31 143 Sal: Income Tax: CL 4 1,041 Sal: ACB Recalls: CA - 44 Sal: Pension Fund: CL 4 Sal: Financial Other Institution: CL 42 Total 517 1,986
17. Payables – non-current
2016/17 R’000 R’000 R’000 R’000 R’000
Note
One to two years
Two to three years
More than three years
Total
Total
Other payables 17.1 - - - - 9 Total - - 9
17.1 Other payables
Note 2017/18 2016/17 17 R’000 R’000 Payable: Adv:N/Dept:Adv:Acc:CL (Pension for traditional leaders) - 9 Total - 9
18. Net cash flow available from operating activities Note 2017/18 2016/17 R’000 R’000
Net surplus/(deficit) as per Statement of Financial Performance 20,479 49,307 Add back non cash/cash movements not deemed operating activities (23,858) 20,212 (decrease)/increase in receivables 326 7,888 Increase in prepayments and advances 25 (25) Decrease in other current assets - 5,843 Decrease in payables – current (1,469) (320) Expenditure on capital assets 26,506 13,656 Surrenders to Revenue Fund (50,662) (8,885) Own revenue included in appropriation 1,416 2,055 Net cash flow generated by operating activities (3,379) 69,519
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19. Reconciliation of cash and cash equivalents for cash flow purposes
Note 2017/18 2016/17 R’000 R’000 Consolidated Paymaster General account 19,458 49,352 Total 19,458 49,352
20. Contingent liabilities 20.1 Contingent liabilities
Note 2017/18 2016/17 R’000 R’000 Liable to Nature Housing loan guarantees Employees Annex 3A 90 108 Claims against the department Annex 3B 14,972 8,972 Intergovernmental payables (unconfirmed balances) Annex 5 1,655 3,154 Total 16,717 12,234
21. Commitments
2017/18 2016/17 R’000 R’000 Current expenditure Approved and contracted 15,322 4,674 15,322 4,674 Capital expenditure Approved and contracted 1,509 2,214 1,509 2,214 Total Commitments 16,831 6,888
1. Contracts managed by the department
The department had commitments that are more than a year relating to the following:
(a) Aurecon South Africa Pty (Ltd):-
The department appointed and entered into a contract with Aurecon South Africa Pty (Ltd) for the Development, Installation and Maintenance of the Provincial Disaster Management Integrated Information System. The contract is for 3 years (multi-year) from 09 October 2017 to 29 September 2020.
The awarded contract amount was R 11, 040 million. The commitment as at 31 March 2018 amounts to R 7,531 million
(b) Mmela Financial Services:-
The department appointed and entered into a contract with Mmela Financial Services Insurance Brokers to provide cover for 14 Fleet Executive Vehicles. The contract is for a 2 years (multi-year) from 01 July 2017 to 30 June 2018. The awarded contract amount was R2, 438 million. The commitment as at 31 March 2018 amounts to R 1,954 million
(c) Micro-Soft Ireland Operation Ltd:-
The department appointed and entered into a contract with Microsoft Ireland Operation Ltd for provision of micro-soft software licence. The contract is for 3 years (multi-year) from 29 April 2016 to 29 April 2019. The awarded contract amount was R12, 739 million. The commitment as at 31 March 2018 amounts to R4, 762million.
(d) Times Media:-
The department appointed and entered into a contract with Times Media for provision of subscription services for the supply and delivery of daily and weekend newspapers. The contract awarded was for 2 years at an amount of R 165(R’000), starting from 09 December 2017 to 09 December 2019. The commitment as at 31 March 2018 amounts to 54(R’000).
(e) Lhoza Trading CC:-
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The department appointed and entered into a contract with Lhoza for provision of cleaning and hygienic services. The contract awarded was for 3 years at an amount of R 3, 231 million, starting from 06 January 2016 to 05 January 2019. The commitment as at 31 March 2018 amounts to 898(R’000).
2. Contracts managed by Department of Roads and Public Works(DRPW) as implementing agent:
The department requested the services of Department of Roads and Public Works as implementing agent for construction of Traditional Councils throughout the province. The contracts are multi-year projects and are managed by the implementing agent (DRPW). The service providers awarded contracts are as follows:-
(f) Umnenga Construction-:
The awarded contract R 1,803 million for construction of Teko Traditional Council. The commitment as at 31 March 2018 was R677 (R’000). The duration 01 July 2017 to 30 June 2019.
(g) Lalitha Construction:-
The awarded contract R 1,832 million for construction of Hala Traditional Council. The commitment as at 31 March 2018 was R527 (R’000). The duration 29 April 2016 to 29 April 2019.
(h) Seasons Findings Construction & Services:-
The awarded contract R 3,058 million. The commitment as at 31 March 2018 was R296 (R’000). The duration 06 January 2016 to 05 January 2019.
22. Accruals and payables not recognised 22.1 Accruals
2017/18 2016/17 R’000 R’000 Listed by economic classification 30 Days 30+ Days Total Total Goods and services 3,727 64 3,791 4,061 Transfers and subsidies 1,881 - 1,881 1,425 Other 79 - 79 7 Total 5,687 64 5,751 5,493 2017/18 2016/17 R’000 R’000 Listed by programme level Administration 4,442 4,838 Local Government 691 188 Development and Planning 245 237 Traditional Institutional Management 336 203 House of Traditional Leaders 37 27 Total 5,751 5,493
Accruals:- Other: The accruals disclosed as “other” relates to bursary invoices and interdepartmental claim received after year end that relate to the 2017/18 financial year.
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22.2 Payables not recognised 2017/18 2016/17 R’000 R’000 Listed by economic classification 30 Days 30+ Days Total Total Goods and services 514 847 1,361 1,607 Transfers and subsidies - - - 27 Other - - - 9,789 Total 514 847 1,361 11,423
2017/18
2016/17 R’000 R’000 Listed by programme level Administration 1,138 1,034 Local Governance 37 937 Development & Planning 113 95 Traditional Institutional Management 65 9,289 House of Traditional Leaders 8 68 Total 1,361 11,423
Notes
2017/18
2016/17
Included in the above totals are the following:
R’000 R’000
Confirmed balances with other departments Annex 5 622 52 Confirmed balances with other government entities Annex 5 339 373 Total 961 425
23. Employee benefits
Notes 2017/18 2016/17 R’000 R’000 Leave entitlement 37,485 33,796 Service bonus (Thirteenth cheque) 18,233 16,160 Capped leave commitments 36,401 39,376 Performance awards 45 163 Total 92,164 89,495
Long term portion of long service awards: At this stage the department is not able to reliably measure the long term portion of the long service awards.
Leave entitlement: Negative leave Included in PERSAL report as at 31 March 2018 for leave entitlement are the amounts for negative leave credits of employees who took leave without having accumulated enough leave credits during the year. The negative leave credits amounts to R245 488.48 and have been excluded on the figure disclosed as the leave entitlement as they have an effect of reducing the leave liability amount.
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24. Lease commitments 24.1 Operating leases expenditure 2017/18
Specialised
military equipment
Land
Buildings and other fixed structures
Machinery and
equipment
Total Not later than 1 year - - - 1,065 1,065 Later than 1 year and not later than 5 years -
-
-
625 625
Total lease commitments - - - 1,690 1,690 2016/17
Specialised
military equipment
Land
Buildings and other fixed structures
Machinery and
equipment
Total Not later than 1 year - - - 1,996 1,996 Later than 1 year and not later than 5 years -
-
-
519
519
Total lease commitments - - - 2,515 2,515 24.2 Finance leases expenditure 2017/18
Specialised military
equipment
Land Buildings and other fixed structures
Machinery and equipment
Total
Not later than 1 year - - - 6,299 6,299 Later than 1 year and not later than
5 years -
-
-
8,252 8,252
Total lease commitments - - - 14,551 14,551
2016/17
Specialised military
equipment
Land Buildings and other fixed structures
Machinery and equipment
Total
Not later than 1 year - - - 6,487 6,487 Later than 1 year and not later than 5 years
-
-
-
8,803
8,803
Total lease commitments - - - 15,290 15,290
184
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
25. Irregular expenditure 25.1 Reconciliation of irregular expenditure
Notes 2017/18 2016/17 R’000 R’000 Opening balance 67,508 70,728 Prior period error - (4,280) As restated 67,508 66,448 Add: Irregular expenditure – relating to prior year - 936 Add: Irregular expenditure – relating to current year 183 124 Less: Prior year amounts condoned - - Closing balance 67,691 67,508
Analysis of awaiting condonation per age classification Current year 183 1,060 Prior years 67,508 66,448 Total 67,691 67,508 Current year irregular expenditure(2017/18):
During the year under review the department incurred irregular expenditure amounting to R182 724.90 relating to services rendered without receipt of an official order. The SCM legislated processes were not followed when procuring the required service.
25.2 Prior period error
Notes 2016/17 R’000 Nature of prior period error Relating to 2012/13 Financial Year : Affecting opening balance
4,280 The incident was disclosed as irregular expenditure instead of being noted as non-compliance as detailed in the Framework Guide on Irregular Expenditure.
(1,430)
Relating to 2010/11 Financial Year : Affecting opening balance
The incident relates to awards made to IBS Motale ECJA Consortium for Public Viewing Areas for 2010 FIFA World Cup for Intsika Yethu Municipality. The investigation was conducted in 2011/12 financial year and was condoned. The transaction was erroneously not taken out of irregular expenditure at the time, hence the adjustment of opening balance to correct the error.
(2,850)
Total prior period error (4,280)
Prior Period Error(prior years): Relating to R1,430 (R’000)
During 2012/13 financial year, the department sourced the services of forensic investigation for Great Kei LM utilising the provisions of Section 16 A6.4 of the Treasury Regulations. The accounting officer is required to report within 10 working days to the relevant Treasury and the Auditor General, all cases where goods and services above the value of R1 million (VAT included) were procured in terms of Treasury Regulations 16A6.4. The department failed to report to Treasury and the Auditor General within the stipulated time hence it was classified as irregular expenditure. The department reported the transaction after 10 working days to Treasury and the Auditor General. The correction of error is to re-classify the transaction from irregular expenditure to non-compliance with laws and regulations.
Prior Period Error(prior years): Relating to R 2,850 (R’000)
The incident relates to awards made to IBS Motale ECJA Consortium for Public Viewing Areas for 2010 FIFA World Cup for Intsika Yethu Municipality. The investigation was conducted in 2011/12 financial year and was condoned. The transaction was erroneously not taken out of irregular expenditure at the time, hence the adjustment of opening balance to correct the error.
185
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
25.2.1 Details of irregular expenditure (relating to current year)
Incident
Disciplinary steps taken/criminal proceedings
2017/18
R’000
Services were rendered without Reported to Head of Department for 183
receipt of an official order investigation in terms of Sec (40)(4)(b)
of PFMA and Sec 9.1.2 of Treasury
Regulations.
Total 183
26. Fruitless and wasteful expenditure 26.1 Reconciliation of fruitless and wasteful expenditure
Notes 2017/18 2016/17 R’000 R’000 Opening balance 3,996 5,640 Prior period error - (1,583) As restated 3,996 4,057 Fruitless and wasteful expenditure – relating to current year - 162 Less: Amounts resolved - (223) Closing balance 3,996 3,996 Analysis of awaiting condonation per age classification Current 3,996 3,996 Total 3,996 3,996
Prior year Fruitless and Wasteful Opening Balance: The opening balance on fruitless and wasteful expenditure is still under investigation and relates to the following: (a) The amount paid to X Calibre for Smart Pens amounting to R 3, 864,514 (b) The amount relating to interest paid to an official for arrear acting allowance amounting to R 67, 671 (c) The invoices paid to a service provider for refreshments which had unreasonable prices amounting to R 13, 038 (d) Interest on overdue invoices paid to Meyers who took the department to court for R50, 279
26.2 Analysis of awaiting resolution per economic classification
2017/18 2016/17 R’000 R’000 Current 3,996 3,996 Total 3,996 3,996
186
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
26.3 Prior period error Notes 2016/17 R’000 Nature of prior period error Relating to 2012/13 Financial Year : Affecting opening balance The department paid Vodacom for smart pens technology contract for CDW’s. The incident was erroneously disclosed as fruitless and wasteful expenditure.
(1,583)
Total prior period error (1,583)
Prior Period Error(prior years): During 2015/16 financial year, the department sourced services of Vodacom for cell phones and airtime for Community Development Workers, which was going to assist them in reporting official duties and on utilisation of smart pens. The phones were not only meant to be used for smart pens but also as the working tool as Community Development Workers are field workers. The department should have not disclosed Vodacom transaction as fruitless and wasteful expenditure hence the adjustment of prior year balance. An amount of R1 583 000 relates to Vodacom contract and R3 864 514 relates to purchase of Smart pens.
26.4 Details of fruitless and wasteful expenditures under investigation (not included in the main note)
Incident 2017/18
R’000
(a) Relates to payment for interest for Telkom over-due account 8
(b) Relates to interest charged and paid by the department for ESKOM on
Electricity bills in respect of traditional leadership institutions. 1
(c) Relates to damages paid by the department on a car hired for employee
for official purposes 6
Total 15
Current Year Fruitless and Wasteful Expenditure under investigation(2017/18):
The department incurred fruitless and wasteful expenditure relating to interest paid on over-due accounts for ESKOM, TELKOM as well as damages on a car hired by the department for official purposes, the breakdown as follows:
(a) TELKOM interest on overdue accounts R 7, 571 (b) TELKOM interest on overdue accounts R 1, 060 (c) Damages on a car hired by the department for employees on official duties R 6, 158
187
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
27. Related party transactions
List related party relationships:- The Department occupies buildings that are owned by / under the custodianship of / leased by the Department of Roads and Public Works. These buildings are occupied for no considerations and no amounts are paid to the Department of Roads and Public Works for the occupation of these premises.
28. Key management personnel
No. of Individuals
2017/18 2016/17
R’000 R’000 Political office bearers (provide detail below) 1 1,978 1,902 Officials: Level 15 to 16 10 12,414 10,027 Level 14 (incl. CFO if at a lower level) 12 12,280 10,620 Total 26,672 22,549
Number of personnel on Level 15 to 16 consists of HOD, 3 DDG’s and 6 Kings. The level 14 also includes employee on level 13 acting for level 14.
29. Provisions
Note 2017/18 2016/17
R’000 R’000
Long Service Awards 2017/18 qualifying employees 455 389
Total 455 389
Long Service Awards:-
The Department of Public Service and Administration (DPSA) has not publicised the revision of long service awards for 2018/19 tariffs/rates which resulted to department utilising 2017/18 tariffs.
The amount excludes traditional leaders and headmen/women as they do not qualify for long service awards.
Correction of error: Provisions and Impairments:
The department made a correction of error relating to the classification of debts more than 3 years owed by debtors. These debts were incorrectly classified under provisions instead of impairment under receivable. They were moved from Note 29(provisions) to Note 13(Receivables). The adjustment had been retrospectively effected from 2016/17(comparative) and the provision amount has been restated to exclude the potentially irrecoverable debts amount. The reconciliation of movements in provisions had been restated relating to 2016/17 financial year.
29.1 Reconciliation of movement in provisions – 2017/18
Provision 1 Provision 2 Provision 3 Total provisions
R’000 R’000 R’000 R’000
[Long Service Awards]
Opening balance 389 - - 389 Increase in provision 66 - - 66 Settlement of provision - - - - Closing balance 455 - - 455
188
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
29.2 Reconciliation of movement in provisions – 2016/17
Provision 1 Provision 2 Provision 3 Total provisions R’000 R’000 R’000 R’000
[Long Service
awards]
debt)
Opening balance 471 - - 471
Increase in provision - - - -
Settlement of provision (82) - - (82)
Closing balance 389 - - 389
30. Movable Tangible Capital Assets
MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2018
Opening balance
Value adjustments
Additions Disposals Closing Balance
R’000 R’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT 60,787
(532)
13,412
(11,923)
61,744
Transport assets 16,099 - 3,363 (9,790) 9,672
Computer equipment 27,073 (532) 7,305 (1,854) 31,992
Furniture and office equipment 16,031 - 1,987 (256) 17,762
Other machinery and equipment 1,584 - 757 (23) 2,318
BIOLOGICAL ASSETS 190 190
Biological assets 190 - - - 190
TOTAL MOVABLE TANGIBLE CAPITAL ASSETS
60,977
(532)
13,412
(11,923)
61,934
Lost assets relating to previous financial years: -
The computer equipment to the value of R532 770.20 bought by the department relating to previous years were lost by employees. These form part of loss register. Disposal of assets:
The department disposed assets amounting to R11, 923 m during the year under review and some were transferred to previous Exco-members of the house of traditional leaders.
Movable Tangible Capital Assets under investigation Number Value R’000 Included in the above total of the movable tangible capital assets per the asset register are assets that are under investigation:
Machinery and equipment 10 103
Lost asset during the year: -
The computer equipment to the value of R 102, 508 bought by the Department were lost by employees in 2017/18 financial year and are under investigation which the outcome is still pending. These form part of loss register.
189
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
30.1 Additions ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2018 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
MACHINERY AND EQUIPMENT 18,850
(5,438)
13,412
Transport assets 8,801 - (5,438) - 3,363
Computer equipment 7,305 - - - 7,305
Furniture and office equipment 1,987 - - - 1,987
Other machinery & equipment 757 - - - 757
TOTAL ADDITIONS TO MOVEABLE CAPITAL ASSET
18,850
-
(5,438)
-
13,412
The department has entered into a lease agreement with Government Fleet Management Services (GFMS) for the provision of vehicles for the department. The amount relating to finance lease is classified as expenditure under capital assets and is not recognised in the asset register.
30.2 Disposals DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2018
Sold for cash Non-cash disposal
Total disposals Cash Received Actual
R’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT 7,333 4,590 11,923 2,063
Transport assets 7,333 2,457 9,790 2,063
Computer equipment - 1,854 1,854 -
Furniture and office equipment - 256 256 -
Other machinery and equipment - 23 23 -
TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS
7,333
4,590
11,923
2,063
The disposal amounts were as follows: (a) Old vehicles for kings and ex-members of the house of traditional leaders relating to previous financial years which were disposed by
means of auction by Government Fleet Management Services (GFMS) amounts to R5, 270m. (b) Four vehicles which were written off amounts to R2, 190m (R2.062m cash received + R127k non cash). (c) The old furniture & office equipment that were disposed through donation amounts to R279 000. (d)The old computer equipment that were disposed through crashing amounts to R1, 854m. (e) Vehicles that were transferred to the ex-members of the house of traditional leaders whose term ended and were co-funded by the
department amounts to R2,330m.
190
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
30.3 Movement for 2016/17
MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017 Opening
balance Prior error Additions Disposals Closing
Balance R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT
56,430
-
4,357
-
60,787 Transport assets 16,099 - - - 16,099 Computer equipment 24,445 - 2,628 - 27,073 Furniture and office equipment 14,560 - 1,471 - 16,031 Other machinery and equipment 1,326 - 258 - 1,584 BIOLOGICAL ASSETS 190 - - - 190 Biological assets 190 - - - 190 TOTAL MOVABLE TANGIBLE CAPITAL ASSETS
56,620
4,357
-
60,977
30.4 Minor assets
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2018
Specialised military assets
Intangible assets
Heritage assets Machinery and equipment
Biological assets
Total
R’000 R’000 R’000 R’000 R’000 R’000
Opening balance - 4 - 16,207 69 16,280
Value adjustment - 1 - - - 1
Additions - - - 1,513 - 1,513
Disposals - - - (840) - (840)
TOTAL MINOR ASSETS
-
5
-
16,880
69
16,954
Specialised military assets
Intangible assets
Heritage assets
Machinery and equipment
Biological assets
Total
Number of minor assets at cost
- - - 950 - 950
- - - 950 950
191
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2017
Specialised military assets
Intangible assets
Heritage assets
Machinery and equipment
Biological assets
Total
R’000 R’000 R’000 R’000 R’000 R’000 Opening balance - 4 - 14,616 69 14,689 Additions - - - 1,591 - 1,591 TOTAL MINOR ASSETS
-
4
-
16,207
69
16,280
Specialised military assets
Intangible assets
Heritage assets Machinery and equipment
Biological assets
Total
Number of minor assets at cost
- - - 1135 - 1135
TOTAL - - - 1135 - 1135
31. Intangible Capital Assets MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2018
Opening balance
Value adjustments Additions Disposals Closing Balance
R’000 R’000 R’000 R’000 R’000
SOFTWARE 160 - 3,509 - 3,669
TOTAL INTANGIBLE CAPITAL ASSETS
160
-
3,509
-
3,669
31.1 ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2018
Cash Non-cash (Development 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 3,509 - - - 3,509
TOTAL ADDITIONS TO INTANGIBLE ASSETS
3,509
-
-
3,509
192
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
31.2 Movement for 2016/17 MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017 Opening
balance Prior period
error Additions Disposals Closing
Balance R’000 R’000 R’000 R’000 R’000
SOFTWARE 160 - - - 160
TOTAL MOVEMENT TO INTANGIBLE CAPITAL ASSETS
160
- - -
160
32. Immovable tangible capital assets ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2018
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
BUILDING AND OTHER FIXED STRUCTURES
4,147
(4,147)
-
-
Dwellings 4,147 - (4,147) - -
TOTAL TO IMMOVABLE TANGIBLE CAPITAL ASSETS
4,147
(4,147)
-
-
32.1 Capital Work-in-Progress CAPITAL WORK-IN-PROGRESS AS AT 31 MARCH 2018
Note
Opening balance 1 April 2017
Current Year WIP
Ready for use (Assets to the AR) /
Contracts terminated
Closing balance 31 March 2018
Annexure 7 R’000 R’000 R’000 R’000 Buildings and other fixed structures
38,478 4,147 (33,085) 9,540
TOTAL 38,478 4,147 (33,085) 9,540
193
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
Age analysis on ongoing projects Number of projects 2017/18
Planned, Construction not started
Planned, Construction started
Total R’000
0 to 1 Year - 2 2,432
1 to 3 Year(s) 1 2,753
3 to 5 Years - 3 4,355
Total - 6 9,540
Ready for use assets(asses to register):- The department had taken the completed projects to the value of R 33,0 million relating to construction of traditional councils and disaster
management services into its asset register as the assets are ready for use. These immovable assets are in the process of being transferred to the Department of Roads and Public Works in terms of S42 of immovable asset transfer.
CAPITAL WORK-IN-PROGRESS AS AT 31 MARCH 2017
Note Opening balance 1 April 2017
Prior period error Current Year WIP
Ready for use (Assets to the AR) ) / Contracts
terminated
Closing balance 31 March
2018
Annexure 7 R’000 R’000 R’000 R’000 R’000
Buildings and other fixed structures
33,486 - 4,992 - 38,478
TOTAL 33,486 - 4,992 - 38,478
32.2 S42 Immovable assets Assets subjected to transfer in terms of S42 of the PFMA – 2017/18
Number of assets Value of assets R’000
BUILDINGS AND OTHER FIXED STRUCTURES 4
33,085
Dwellings 4 33,085
TOTAL 4 33,085
The department is in the process of transferring assets to Department of Roads and Public Works in terms of S42 of the PFMA.
194
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
33. Correction of prior period errors 33.1. Correction of prior period errors
Note Amount before error
correction
Prior period error Restated Amount
2016/17 2016/17 2016/17
R’000 R’000 R’000
Other:
Irregular expenditure 25 70,728 (4,280) 66,448
Net effect 70,728 (4,280) 66,448
Correction of error: Irregular expenditure: R 1,430 (R’000)
During 2012/13 financial year, the department sourced the services of forensic investigation for Great Kei LM utilising the provisions of Section 16 A6.4 of the Treasury Regulations. The accounting officer is required to report within 10 working days to the relevant Treasury and the Auditor General, all cases where goods and services above the value of R1 million (VAT included) were procured in terms of Treasury Regulations 16A6.4. The department failed to report to Treasury and the Auditor General within the stipulated time hence it was classified as irregular expenditure. The department reported the transaction after 10 working days to Treasury and the Auditor General.
The department had an engagement with Auditor General regarding classification of this transaction and agreed that, need to be adjusted as the transaction should have been classified as non-compliance. The correction of error is to re-classify the transaction from irregular expenditure to non-compliance with laws and regulations.
Correction of error: Irregular expenditure: R 2,850 (R’000)
The incident relates to awards made to IBS Motale ECJA Consortium for Public Viewing Areas for 2010 FIFA World Cup for Intsika Yethu Municipality. The investigation was conducted in 2011/12 financial year and was condoned. The transaction was erroneously not taken out of irregular expenditure at the time, hence the adjustment of opening balance to correct the error.
33.2. Correction of prior period errors Note Amount before error
correction Prior period error Restated
Amount 2016/17 2016/17 2016/17
R’000 R’000 R’000
Other:-
Fruitless and wasteful expenditure 26 5,640 (1,583) 4,057
Net effect 5,640 (1,583) 4,057
Correction of error: Fruitless and wasteful expenditure:
During 2015/16 financial year, the department sourced services of Vodacom for cell phones and airtime for CDW, which was going to assist them in reporting official duties and on utilisation of smart pens. The phones were not only meant to be used for smart pens but also as the working tool as CDW are field workers.
The department should have not disclosed Vodacom transaction as fruitless and wasteful expenditure hence the adjustment of prior year balance.
195
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
33.3. Correction of prior period errors
Note Amount before error correction
Prior period error Restated Amount
2016/17 2016/17 2016/17
R’000 R’000 R’000
Provisions:-
Provisions(irrecoverable debts) 29 1,199 (1,199) -
Net effect 1,199 (1,199) -
Correction of error: Provisions(irrecoverable debts): The department made a correction of error relating to the classification of debts more than 3 years owed by debtors. These debts were incorrectly classified under provisions instead of being classified under receivables as estimate of impairment. They were moved from Note 29(provisions) to Note 13(Receivables). The adjustment had been effected retrospectively (comparative) and the provision amount has been restated to exclude the potentially irrecoverable debts amount.
33.4. Correction of prior period errors
Note Amount before error correction
Prior period error Restated Amount
2016/17 2016/17 2016/17
R’000 R’000 R’000
Receivables:-
Estimate of Impairment(debtors) 13.4 - 1,199 1,199
Net effect - 1,199 1,199
Correction of error: Estimation of impairments’(Debtors) The department made a correction of error relating to the classification of debts more than 3 years owed by debtors. These debts were incorrectly classified under provisions instead of being classified under receivables as estimate of impairment. They were moved from Note 29(provisions) to Note 13(Receivables). The adjustment had been effected retrospectively (comparative) and the provision amount has been restated to exclude the potentially irrecoverable debts amount.
196
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000
%
Amat
hole
Dis
trict
Mun
icip
ality
-
- 3,
000
3,00
0 53
2 -
-
Dr.
Beye
r’s N
aude
’Loc
al M
unic
ipal
ity
8,80
6 -
- 8,
806
8,80
6 -
-
Cam
debo
o/Ba
viaa
ns/Ik
wez
i Mun
icip
ality
-
- -
- -
- -
Chr
is H
ani D
istri
ct M
unic
ipal
ity
25,0
00
- (5
,453
) 19
,547
19
,547
-
-
Elun
dini
Loc
al M
unic
ipal
ity
4,00
0 -
(855
) 3,
145
3,14
5 -
-
Ints
ika
Yeth
u Lo
cal M
unic
ipal
ity
11,0
19
- (4
,000
) 7,
019
6,98
1 -
-
Inxu
ba Y
ethe
mba
Loc
al M
unic
ipal
ity
1,15
4 -
- 1,
154
1,15
4 -
-
King
Sab
atha
Dal
indy
ebo
Mun
icip
ality
11
,869
-
(4,0
00)
7,86
9 7,
869
- -
Enoc
h M
gijim
a Lo
cal M
unic
ipal
ity
5,00
0 -
577
5,57
7 5,
577
- -
Mat
atie
le L
ocal
Mun
icip
ality
9,
380
- -
9,38
0 9,
308
- -
Mbh
izan
a Lo
cal M
unic
ipal
ity
21,6
81
- -
21,6
81
21,2
77
- -
Nta
bank
ulu
Loca
l Mun
icip
ality
10
,500
-
(539
) 9,
961
9,96
1 -
-
Port
St J
ohns
Loc
al M
unic
ipal
ity
1,15
3 -
(1,1
53)
- -
- -
Ray
mon
d M
hlab
a Lo
cal M
unic
ipal
ity
14,3
61
- 57
6 14
,937
14
,937
-
-
Sund
ay’s
Riv
er V
alle
y Lo
cal M
unic
ipal
ity
1,15
4 -
- 1,
154
1,15
4 -
-
Wal
ter S
isul
u Lo
cal M
unic
ipal
ity
27,9
18
- 30
,000
57
,918
57
,918
-
-
Mak
ana
Loca
l Mun
icip
ality
-
- 2,
992
2,99
2 2,
992
Um
zim
vubu
Loc
al M
unic
ipal
ity
7,35
1 -
(351
) 7,
000
7,00
0 -
-
TOTA
L 16
0,34
6 -
20,7
94
181,
140
178,
158
- -
198
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
AN
NE
XU
RE
S T
O T
HE
AN
NU
AL
FIN
AN
CIA
L S
TA
TE
ME
NT
S -
fo
r th
e y
ear
en
ded
31
Marc
h 2
018
2017/1
8 A
nnual F
inancia
l S
tate
ments
-CO
GT
A E
C
ANNE
XURE
1A
STAT
EMEN
T O
F CO
NDIT
IONA
L G
RANT
S AN
D O
THER
TRA
NSFE
RS P
AID
TO M
UNIC
IPAL
ITIE
S NA
ME
OF
MUN
ICIP
ALIT
Y
GRA
NT A
LLO
CATI
ON
TRAN
SFER
SP
ENT
2016
/17
DoRA
&
othe
r tra
nsfe
rs
Roll
Ove
rs
Adju
stm
ents
To
tal
Avai
labl
e Ac
tual
Tr
ansf
er
Re-a
lloca
tions
by
Nat
iona
l Tr
easu
ry o
r Na
tiona
l De
partm
ent
Amou
nt
rece
ived
by
m
unic
ipal
ity
Amou
nt
spen
t by
mun
icip
ality
Unsp
ent
fund
s %
of
avai
labl
e fu
nds
spen
t by
mun
icip
ality
Divi
sion
of
Re
venu
e Ac
t(Tot
al
Avai
labl
e af
ter
adju
stm
ents
) R’
000
R’00
0 R'
000
R'
000
%
R'00
0 R'
000
R'00
0 %
R’
000
Dr.
Beye
rs N
aude
Loc
al
Mun
icipa
lity
8,80
6 -
- 8,
806
8,80
6 -
8,80
6 5,
106
3,70
0 58
%
6,72
1
Chr
is H
ani D
istric
t M
unici
pality
25
,000
-
(5,4
53)
19,5
47
19,5
47
- 19
,547
19
,428
11
9 99
%
16,7
61
Elun
dini
Mun
icipa
lity
4,00
0 -
(855
) 3,
145
3,14
5 -
3,14
5 1,
679
1,46
6 53
%
1,00
0 En
och
mgi
lima
Loca
l M
unici
pality
5,
000
57
7 5,
577
5,57
7
5,57
7 3,
841
1,73
6 69
%
3,00
0
Ints
ika Y
ethu
Mun
icipa
lity
11,0
19
- (4
,000
) 7,
019
6,98
1 -
6,98
1 45
6 6,
525
7%
1,00
0 In
xuba
Yet
hem
ba M
unici
pality
1,
154
- -
1,15
4 1,
154
- 1,
154
1,15
4 -
100%
1,
010
King
Sab
atha
Dal
indy
ebo
11
,869
-
(4,0
00)
7,86
9 7,
869
- 7,
869
6,72
0 1,
149
85%
3,
000
Mak
ana
Loca
l Mun
icipa
lity
-
2,99
2 2,
992
2,99
2 -
2,99
2 2,
908
84
97%
-
Mbi
zana
Loc
al M
unici
pality
21
,681
-
- 21
,681
21
,277
-
21,2
77
13,5
15
7,76
2 64
%
- M
atat
iele
Loc
al M
unici
pality
9,
380
- -
9,38
0 9,
308
- 9,
308
5,22
9 4,
079
56%
1,
000
Mbh
ashe
Loc
al M
unici
pality
- -
- -
- -
- -
1,
000
Nta
bank
ulu
Loca
l Mun
icipa
lity
10,5
00
- (5
39)
9,96
1 9,
961
- 9,
961
9,96
1 -
100%
15
,000
R
aym
ond
Mhl
aba
Mun
icipa
lity
14,3
61
- 57
6 14
,937
14
,937
-
14,9
37
12,3
91
2,54
6 83
%
13,3
61
Nya
nden
i Loc
al M
unici
pality
- -
- -
- -
- -
1,
000
Port
St J
ohns
Mun
icipa
lity
1,15
3 -
(1,1
53)
- -
- -
- -
1,
011
Sara
h Ba
artm
an D
istric
t M
unici
pality
- -
- -
- -
- -
3,
075
Amat
hole
Dist
rict M
unici
pality
- 3,
000
3,00
0 53
2 -
532
- 53
2 0%
5,
00
Senq
u Lo
cal M
unici
pality
- -
- -
- -
- -
-
Sund
ay’s
Rive
r Val
ley
Mun
icipa
lity
1,15
4 -
- 1,
154
1,15
4 -
1,15
4 1,
154
- 10
0%
1,01
0
199
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
AN
NE
XU
RE
S T
O T
HE
AN
NU
AL
FIN
AN
CIA
L S
TA
TE
ME
NT
S -
fo
r th
e y
ear
en
ded
31
Marc
h 2
018
2017/1
8 A
nnual F
inancia
l S
tate
ments
-CO
GT
A E
C
NAM
E O
F M
UNIC
IPAL
ITY
GRA
NT A
LLO
CATI
ON
TRAN
SFER
SP
ENT
2016
/17
DoRA
&
othe
r tra
nsfe
rs
Roll
Ove
rs
Adju
stm
ents
To
tal
Avai
labl
e Ac
tual
Tr
ansf
er
Re-a
lloca
tions
by
Nat
iona
l Tr
easu
ry o
r Na
tiona
l De
partm
ent
Amou
nt
rece
ived
by
m
unic
ipal
ity
Amou
nt
spen
t by
mun
icip
ality
Unsp
ent
fund
s %
of
avai
labl
e fu
nds
spen
t by
mun
icip
ality
Divi
sion
of
Re
venu
e Ac
t(Tot
al
Avai
labl
e af
ter
adju
stm
ents
) R’
000
R’00
0 R'
000
R'
000
%
R'00
0 R'
000
R'00
0 %
R’
000
Wal
ter S
isulu
loca
l Mun
icipa
lity
27,9
18
- 30
,000
57
,918
57
,918
-
57,9
18
26,8
43
31,0
75
46%
27
,418
Sa
khisi
zwe
Loca
l Mun
icipa
lity
- -
- -
- -
- -
- -
1,00
0 M
bhas
he L
ocal
Mun
icipa
lity
- -
- -
- -
- -
- -
1,00
0 In
gquz
a H
ill Lo
cal M
unici
pality
-
- -
- -
- -
- -
- 1,
000
Um
zimvu
bu M
unici
pality
7,
351
- (3
51)
7,00
0 7,
000
- 7,
000
1,00
0 6,
000
14%
2,
000
TOTA
L 16
0,34
6 -
20,7
94
181,
140
178,
158
- 17
8,15
8 11
1,38
5 66
,773
60
%
100,
867
ANNE
XURE
1B
STAT
EMEN
T O
F TR
ANSF
ERS
TO D
EPAR
TMEN
TAL
AGEN
CIES
AND
ACC
OUN
TS
DEPA
RTM
ENTA
L AG
ENCY
/ ACC
OUN
T
TRAN
SFER
ALL
OCA
TIO
N TR
ANSF
ER
2016
/17
Adju
sted
Ap
prop
riatio
n Ro
ll O
vers
Ad
just
men
ts
Tota
l Av
aila
ble
Actu
al
Tran
sfer
%
of
Avai
labl
e fu
nds
Tran
sfer
red
Fina
l Ap
prop
riatio
n
R'00
0 R'
000
R'00
0 R'
000
R'00
0 %
R'
000
Sout
h Af
rican
Rev
enue
Ser
vices
16
0 -
- 16
0 16
0 10
0%
-
(SAR
S)
TOTA
L 16
0 -
- 16
0 16
0 10
0%
-
The
depa
rtmen
t was
ass
esse
d by
SAR
S fo
r 201
4 an
d 20
15 o
n su
bmitt
ed a
nnua
l tax
reco
ncilia
tions
whe
re it
was
disc
over
ed th
at th
e de
partm
ent h
as u
nder
paid
SAR
S fo
r the
se y
ears
. The
out
com
e of
the
asse
ssm
ent w
as n
ever
com
mun
icate
d to
the
depa
rtmen
t unt
il the
deb
t was
raise
d an
d fo
rwar
ded
by S
ARS
to th
e de
partm
ent i
n Fe
brua
ry 2
018.
200
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
AN
NE
XU
RE
S T
O T
HE
AN
NU
AL
FIN
AN
CIA
L S
TA
TE
ME
NT
S -
fo
r th
e y
ear
en
ded
31
Marc
h 2
018
2017/1
8 A
nnual F
inancia
l S
tate
ments
-CO
GT
A E
C
ANNE
XURE
1G
ST
ATEM
ENT
OF
TRAN
SFER
S TO
HO
USEH
OLD
S HO
USEH
OLD
S
TRAN
SFER
ALL
OCA
TIO
N EX
PEND
ITUR
E 20
16/1
7 Ad
just
ed
Appr
opria
tion
Act
Roll
Ove
rs
Adju
stm
ents
To
tal
Avai
labl
e Ac
tual
Tr
ansf
er
% o
f Av
aila
ble
fund
s Tr
ansf
erre
d
Adju
sted
Ap
prop
riatio
n Ac
t R'
000
R'00
0 R'
000
R'00
0 R'
000
%
R'00
0 Tr
ansf
ers
Leav
e G
ratu
ity
12,0
95
- -
12,0
95
11,6
70
96%
15
,251
R
etire
men
t Ben
efit
355
- -
355
350
99%
44
0 In
jury
on
duty
28
-
- 28
-
0%
36
Seve
ranc
e Pa
ckag
e 3,
000
- -
3,00
0 2,
541
85%
-
15
,478
-
- 15
,478
14
,561
15,7
27
Subs
idie
s
Burs
arie
s ( N
on E
mpl
oyee
s)
- -
- -
- -
21
TOTA
L 15
,478
-
- 15
,478
14
,561
94
%
15,7
48
ANNE
XURE
3A
STAT
EMEN
T O
F FI
NANC
IAL
GUA
RANT
EES
ISSU
ED A
S AT
31
MAR
CH 2
018
– LO
CAL
Gua
rant
or
inst
itutio
n G
uara
ntee
in
re
spec
t of
Orig
inal
gu
aran
teed
ca
pita
l am
ount
Ope
ning
ba
lanc
e 1
April
201
7
Gua
rant
ees
draw
dow
ns
durin
g th
e ye
ar
Gua
rant
ees
repa
ymen
ts/
canc
elle
d/ re
duce
d/
rele
ased
dur
ing
the
year
Reva
luat
ions
Cl
osin
g ba
lanc
e 31
Mar
ch
2018
Gua
rant
eed
inte
rest
fo
r yea
r end
ed 3
1 M
arch
201
8
Real
ised
lo
sses
not
re
cove
rabl
e i.e
. cl
aim
s pa
id o
ut
R’00
0 R’
000
R’00
0 R’
000
R’00
0 R’
000
R’00
0 R’
000
Ho
usin
g
Stan
dard
Ban
k H
ousin
g
- 90
-
- -
90
- -
Firs
t Nat
iona
l Ban
k H
ousin
g -
18
- (1
8)
- -
- -
TO
TAL
- 10
8 -
(18)
-
90
- -
Stat
e gu
aran
tee
rele
ased
dur
ing
the
year
:- Th
e st
ate
guar
ante
e fo
r Man
tshi
T. f
or F
irst N
atio
nal B
ank
had
been
rele
ased
as
colla
tera
l by
the
bank
.
201
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
AN
NE
XU
RE
S T
O T
HE
AN
NU
AL
FIN
AN
CIA
L S
TA
TE
ME
NT
S -
fo
r th
e y
ear
en
ded
31
Marc
h 2
018
2017/1
8 A
nnual F
inancia
l S
tate
ments
-CO
GT
A E
C
ANN
EXUR
E 3B
ST
ATEM
ENT
OF
CONT
ING
ENT
LIAB
ILIT
IES
AS A
T 31
MAR
CH 2
018
Natu
re o
f Lia
bilit
y
Ope
ning
Bal
ance
Li
abili
ties
incu
rred
du
ring
the
year
Li
abili
ties
paid
/can
celle
d/re
duce
d du
ring
the
year
Liab
ilitie
s re
cove
rabl
e (P
rovi
de d
etai
ls
here
unde
r)
Clo
sing
B
alan
ce
1 Ap
ril 2
017
31 M
arch
201
8 R’
000
R’00
0 R’
000
R’0
00
R’0
00
Clai
ms
agai
nst t
he d
epar
tmen
t
Lega
l:
Nom
bule
lo H
acku
la-B
reac
h of
Con
tract
-
4,75
9 -
- 4,
759
Khan
ya c
onsu
lting
(Cla
im fo
r unj
ust e
nric
hmen
t) 88
8 -
- -
888
ST J
ikijo
( Mot
or v
ehic
le a
ccid
ent d
amag
es c
laim
) 37
-
- -
37
Mni
naw
a M
tirar
a (B
alan
ce o
f sal
ary
for a
ctin
g pe
riod
of a
rege
nt h
eadm
an)
120
- -
- 12
0
S.L
Bani
nzi (
Def
amat
ion
of c
hara
cter
s)
200
- -
- 20
0
PD N
aido
o &
Asso
ciat
es (A
llege
d se
rvic
es re
nder
ed)
1,49
6 -
- -
1,49
6
P.Se
nti (
Unl
awfu
l arre
st)
100
- -
- 10
0
Mey
ers
Gro
up(ir
regu
lar a
nd d
ispu
ted
car h
ire)
- 18
4 -
- 18
4
Jesu
s C
hris
t of t
he la
tter d
ay s
aint
s(M
otor
veh
icle
acc
iden
t cla
im)
156
- -
- 15
6
Ms
Patri
cia
Xokw
a(D
efam
atio
n of
cha
ract
er)
3,50
0 -
- -
3,50
0
Man
dla
Mnq
waz
ana
(Def
amat
ion
of c
hara
cter
) 10
0 -
- -
100
M. T
eyis
e ( A
llege
d br
each
of c
ontra
ct o
f agr
eem
ent)
729
- -
- 72
9
Mkh
okhe
li So
ndlo
(Cla
im fo
r non
-pay
men
t of s
alar
y)
516
- -
- 51
6
Mza
ndile
Per
tese
n(C
laim
for d
amag
es)
1,13
0 -
- -
1,13
0
Sam
son
Maf
una-
Cla
im fo
r non
-pay
men
t of s
alar
y -
240
- -
240
XCal
ibre
(Pty
) Ltd
-Cla
im fo
r bre
ach
of a
gree
men
t -
817
- -
817
TOTA
L
8,9
72
6,0
00
- -
14,9
72
X Ca
libre
Pty
(Ltd
) cla
im fo
r bre
ach
of a
gree
men
t: Th
e de
partm
ent a
war
ded
a te
nder
and
ent
ered
into
an
agre
emen
t with
X C
alib
re P
ty (L
td) f
or th
e pr
ovisi
on o
f dig
ital p
ens,
dev
ices
and
mai
nten
ance
in M
arch
201
3.
On
the
18th J
une
2018
, the
dep
artm
ent r
ecei
ved
sum
mon
s fro
m th
e H
igh
Cou
rt of
Sou
th A
frica
in B
hish
o fo
r a c
laim
from
X C
alib
re P
ty (L
td) r
elat
ing
to P
hase
9 a
nd P
hase
10
of th
e pr
ojec
t (fo
r an
amou
nt o
f R
766
080.
00 a
nd R
51
044.
00) r
espe
ctive
ly.
The
claim
rela
tes
to a
n ev
ent o
r con
ditio
n th
at e
xiste
d be
fore
the
repo
rting
dat
e re
latin
g to
the
tend
er to
X C
alib
re P
ty (L
td).
The
claim
is in
clude
d as
a s
ubse
quen
t eve
nt o
ccur
red
afte
r yea
r end
rela
ting
to c
ontin
gent
lia
bility
am
ount
ing
to R
817
124
.00.
202
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
AN
NE
XU
RE
S T
O T
HE
AN
NU
AL
FIN
AN
CIA
L S
TA
TE
ME
NT
S -
fo
r th
e y
ear
en
ded
31
Marc
h 2
018
2017/1
8 A
nnual F
inancia
l S
tate
ments
-CO
GT
A E
C
ANNE
XURE
4
CLAI
MS
RECO
VERA
BLE
Gov
ernm
ent E
ntity
Conf
irmed
bal
ance
out
stan
ding
Un
conf
irmed
bal
ance
out
stan
ding
To
tal
Cas
h in
tran
sit a
t yea
r end
20
17/1
8
31/0
3/20
18
31/0
3/20
17
31/0
3/20
18
31/0
3/20
17
31/0
3/20
18
31/0
3/20
17
Rec
eipt
dat
e up
to s
ix
(6) w
orki
ng d
ays
afte
r ye
ar e
nd
Am
ount
R’00
0 R’
000
R’00
0 R’
000
R’00
0 R’
000
R
’000
Depa
rtmen
t
(DR
DAR
)- EC
9
-
-
-
9
-
-
-
-
-
-
-
TOTA
L 9
-
-
-
9
-
OTH
ER G
OVE
RNM
ENT
ENTI
TY
Gov
ernm
ent F
leet
Man
agem
ent S
ervi
ces
(GFM
S)
35
8
- -
-
3
58
- -
-
Subt
otal
35
8 -
- -
35
8
-
TOTA
L 36
7 -
- -
36
7 -
- -
Gov
ernm
ent F
leet
Man
agem
ent S
ervi
ces:
-
The
depa
rtmen
t req
uest
ed D
epar
tmen
t of T
rans
port
(GFM
S) to
dis
pose
by
way
of a
uctio
n ve
hicl
es b
elon
ging
to C
OG
TA E
C. T
hese
veh
icle
s w
ere
disp
osed
and
tota
l am
ount
auc
tione
d fo
r was
R
358(
R’0
00).
The
amou
nt h
ad n
ot b
een
paid
to C
OG
TA E
C a
s at
31
Mar
ch 2
018
by D
epar
tmen
t of T
rans
port
(GFM
S).
203
DE
PA
RT
ME
NT
OF
CO
OP
ER
AT
IVE
GO
VE
RN
AN
CE
AN
D T
RA
DIT
ION
AL
AF
FA
IRS
- V
OT
E 7
AN
NE
XU
RE
S T
O T
HE
AN
NU
AL
FIN
AN
CIA
L S
TA
TE
ME
NT
S -
fo
r th
e y
ear
en
ded
31
Marc
h 2
018
2017/1
8 A
nnual F
inancia
l S
tate
ments
-CO
GT
A E
C
ANNE
XURE
5
INTE
R-G
OVE
RNM
ENT
PAYA
BLES
G
OVE
RNM
ENT
ENTI
TY
Conf
irmed
bal
ance
out
stan
ding
Unc
onfir
med
bal
ance
out
stan
ding
TO
TAL
Cas
h in
tran
sit a
t yea
r end
201
7/18
31/0
3/20
18
31/0
3/20
17
31/0
3/20
18
31/0
3/20
17
31/0
3/20
18
31/0
3/20
17
Paym
ent d
ate
up to
six
(6
) wor
king
day
s be
fore
yea
r end
A
mou
nt
R’00
0 R’
000
R’00
0 R’
000
R’00
0 R’
000
R
’000
DE
PART
MEN
TS
Cu
rren
t
EC
Dep
artm
ent o
f Saf
ety&
Lia
ison
62
-
- -
62
- -
- Ju
stic
e an
d C
onst
. Dev
elop
men
t 56
0 52
1,
389
3,06
3 1,
949
3,11
5
- -
EC- O
ffice
of t
he P
rem
ier
- -
- 91
-
91
- -
TOTA
L 62
2 52
1,
389
3,15
4 2,
011
3,20
6
O
THER
GO
VER
NMEN
T EN
TITY
Nat
iona
l Sch
ool o
f Gov
ernm
ent
- -
131
- 13
1 -
- -
Gov
ernm
ent F
leet
Man
agem
ent
Serv
ices
(GFM
S)
301
172
- -
301
172
- -
Gov
ernm
ent P
rintin
g W
orks
38
5
135
- 17
3 5
- -
SITA
(Sta
te in
for.
Tech
n. A
genc
y)
- 19
6 -
- -
196
- -
Subt
otal
33
9 37
3 26
6 -
605
373
- -
TOTA
L 96
1 42
5 1,
655
3,15
4
2,6
16
3,57
9 -
-
204
DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - VOTE 7
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS - for the year ended 31 March 2018
2017/18 Annual Financial Statements-COGTA EC
ANNEXURE 7 MOVEMENT IN CAPITAL WORK IN PROGRESS MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2018
Opening balance Current Year Capital WIP
Ready for use (Assets to the AR) ) / Contracts
terminated
Closing balance
R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED STRUCTURES 38,478 4,147 (33,085) 9,540
Dwellings 38,478 4,147 (33,085) 9,540
TOTAL 38,478 4,147 (33,085) 9,540
Age analysis on ongoing projects
Number of projects 2017/18 Planned,
Construction not started
Planned, Construction
started
Total R’000
0 to 1 Year - 2 2,432
1 to 3 Year(s) - 1 2,753
3 to 5 Years - 3 4,355
Total - 6 9,540
MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2017 Opening balance Prior period
error Current Year Capital WIP
Ready for use (Assets to the AR) / Contracts
terminated
Closing balance
R’000 R’000 R’000 R’000 R’000 BUILDINGS AND OTHER FIXED STRUCTURES
33,486 - 4,992 - 38,478
Dwellings 33,486 - 4,992 - 38,478 TOTAL 33,486 - 4,992 - 38,478
205
