kwazulu-natal provincial treasury: vote 6 provincial treasury: vote 6 kzn provincial treasury annual...
TRANSCRIPT
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
KZN Provincial Treasury Annual Report - 1 -
TABLE OF CONTENTS
PART A: GENERAL INFORMATION
A.1 Foreword by the MEC of Finance A.2 Introduction by the Head of Department A.3 Vision, Mission and Values A.4 Legislative and Other Mandates A.5 Strategic Outcome Oriented Goals
PART B: PROGRAMME PERFORMANCE
B.1 Programme 1: Administration B.2 Programme 2: Fiscal Resource Management B.3 Programme 3: Financial Management B.4 Programme 4: Internal Audit B.5 Programme 5: Growth and Development
PART C: GOVERNANCE INFORMATION
C.1 Introduction C.2 Risk Management C.3 Fraud and Corruption C.4 Minimising Conflict of Interest C.5 Code of Conduct C.6 Health and Environmental Issues C.7 Portfolio Committee C.8 SCOPA Resolutions C.9 Prior Modifications to Audit Reports C.10 Internal Control Unit C.11 Internal Audit and Audit Committees
PART D: HUMAN RESOURCE MANAGEMENT
D.1 Expenditure D.2 Employment and Vacancies D.3 Job Evaluation D.4 Employment Changes D.5 Employment Equity D.6. Performance Rewards D.7 Foreign Workers D.8 Leave Utilisation D.9 HIV and Aids and Health Promotion Programmes D.10 Labour Relations D.11 Skills Developments D.12 Injury on Duty D.13 Utilisation of Consultants
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
KZN Provincial Treasury Annual Report - 2 -
PART E: FINANCIAL INFORMATION
E.1 Report of the Accounting Officer E.2 Report of the Auditor-General E.3 Appropriation Statement E.4 Notes to the Appropriation Statement E.5 Statement of Financial Performance E.6 Statement of Financial Position E.7 Statement of Changes in Net Assets E.8 Cash Flow Statement E.9 Accounting Policies E.10 Notes to the Annual Financial Statements E.11 Disclosures Notes to the Annual Financial Statements E.12 Annexures to the Annual Financial Statements
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
KZN Provincial Treasury Annual Report - 3 -
PART A: GENERAL INFORMATION A1: FOREWORD BY THE MEC OF FINANCE, MS BF SCOTT
Provincial Treasury continues to strive to be the centre of excellence in financial and fiscal
management. I am very proud to say that Treasury has lived up to this vision by attaining our fifth
consecutive clean audit! To quote Aristotle “We are what we repeatedly do. Excellence is therefore
not an act, but a habit.”
Besides attaining a clean audit, there are a number of awards that were presented to Provincial
Treasury in 2013/14. These include receiving two Gold Awards, namely the Head of Treasury
receiving the Head of Department of the Year Award and Treasury as a department receiving the
Best Run Provincial Institution Award, both of which were presented at the recently held Premier’s
Service Excellence Awards. The Auxiliary Services unit entered the Batho Pele awards category
where they scooped a Bronze Award. Our Human Resources did very well again, receiving the
MPAT Award which is allocated to the best Human Resources unit in the public service. This is a
national award with a key focus on Management Performance Assessment as co-ordinated by the
Department of Performance Management and Evaluation. In addition, Human Resources was again
awarded with a Gold Award for being the best serving Human Resources within KZN.
As a province, we have done exceptionally well, with our Provincial Revenue Enhancement
Strategy contributing to the revenue over-collection of R282.907 million realised in 2013/14
(unaudited numbers). The province continued to implement careful cash management and fiscal
austerity measures and this resulted in KZN achieving a minor over-spending of R59.915 million, a
mere 0.1 per cent above budget, well within acceptable norms.
Provincial Treasury continues to make inroads in arrear government debt owed to municipalities.
Our focus has shifted to three specific risk areas, namely Department of Public Works (ensuring that
all municipal valuation rolls for state property agree to the Public Works immovable asset register
and ensuring that all municipal billing systems for state properties are credible; Department of
Human Settlements (ensuring that all municipal valuation rolls for state property agree to the
Human Settlements immovable asset register and to ensure that all municipal billing systems for
state properties are credible); Department of Education (ensuring payment of all Section 21 school
arrear debt and finding a sustainable solution for the payment of municipal services for Section 21
schools).
Provincial Treasury successfully completed capacity building interventions in the SCM components
of the Departments of Social Development, Sport and Recreation, Uthukela District Municipality,
Ugu District Municipality and Umtshezi Municipality. In these institutions, Treasury provided direct
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
KZN Provincial Treasury Annual Report - 4 -
assistance in managing the procurement processes. Comprehensive SCM compliance
assessments of all departments and municipalities were undertaken and findings were tabled at
Cabinet. Provincial Treasury successfully completed all phases of the Contract Management pilot
project in various pilot sites.
Municipalities continued to be assisted in areas of budget preparation, compliance with the MFMA,
capacity relating to the internal audit function, audit committee functions and to establish risk
management functions, among others. The delegated municipalities were supported with internal
audit, risk management and forensic audit support services. Through the municipal support
programme, 21 municipalities were assisted in various work streams, which included cashflow
management, internal control enhancement and VAT reviews.
Provincial Treasury has had a very productive and successful year with many achievements to be
proud of. Excellence is never an accident. It is the result of high intention, sincere effort, intelligent
direction, skilful execution and the vision to see obstacles as opportunities. – Anonymous.
Signed by
Ms BF Scott
MEC for Finance
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
KZN Provincial Treasury Annual Report - 5 -
A.2: INTRODUCTION BY THE HEAD OF DEPARTMENT
Over the past 20 years, South Africa has built a solid foundation on which to address its challenges.
The National Development Plan lays the basis for a new, more inclusive growth path for the next 20
years. The Plan seeks to focus the efforts of all South Africans in addressing poverty, inequality and
unemployment. For the plan to be fully realised it requires the involvement of all sectors within
South Africa and the state being one of them.
Our responsibility as Provincial Treasury is ensuring sound financial management and good
governance in provincial departments, government entities and municipalities in KwaZulu-Natal.
The hard work undertaken by dedicated men and women in improving financial management and
good governance in the province is laying the foundation for addressing poverty, inequality and
unemployment as expressed in the NDP.
The period under review has clearly shown that goals that were identified by the Provincial Treasury
in the Five Year Strategic Plan (2010–2015) are bearing fruits. These include amongst others:
promote good cash management and maintain favourable provincial cash positions; enhance
systems of supply chain management through developing and monitoring the implementation of
relevant systems; ensure efficient support to departments in planning for infrastructure and
implementation.
The 2013/14 MTEF budget presented to the legislature in March 2013 saw a R6.7 billion decrease
over the MTEF. The department has been working with other departments in the province to adjust
to the equitable share reductions. This included the review of all departments’ organograms in order
to eliminate some nonessential posts permanently and reporting to the Provincial Treasury the
funds that will be released from Compensation of employees as a result of this exercise.
Provincial Treasury continues to monitor and support municipalities in the areas such as budgeting,
supply chain management, cash flow management, internal controls and preparation of Annual
Financial Statements. As an additional supply chain management control in municipalities the
department has established Municipal Bids Appeal Tribunals in all districts.
The Provincial Treasury has received a clean audit from the Auditor General for the fifth consecutive
year. This is a major achievement considering that the Auditor General’s scope has increase over
the years to cover not only financial management but performance of the department as well.
Provincial Treasury continues to struggle in attracting and retaining key personnel with skills in
accounting, finance and economics. As a result the department has under-spent by R74,21 million
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
KZN Provincial Treasury Annual Report - 6 -
in the period under review. The under-spending is mainly due to the delays in filling of budgeted
vacant positions.
The sterling work that Provincial Treasury does was recognised in the KZN Premier Service
Excellence Awards held in July 2014. In the period under review the Provincial Treasury won in the
Best Head of Department for the Year and the Best Public Service Institution (Provincial) of the
Year.
In conclusion, it is my pleasure to present the 2013/14 Annual Report for KwaZulu-Natal Treasury.
Signed by Mr L S Magagula
Head: Provincial Treasury
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
KZN Provincial Treasury Annual Report - 7 -
A.3: Vision, Mission and Values
a) Vision
Be the centre of excellence in financial and fiscal management in the country.
b) Mission
To ensure equitable resource allocations for the Pr ovince of KwaZulu-Natal, analyse and
monitor government (provincial and local, including their public entities) revenue and
expenditure, and instil prudent financial managemen t and good governance.
Through robust public policy research, the Provincial Treasury will contribute to the realisation of
government policy priorities by ensuring that government interventions in the economy are targeted,
efficient, sustainable, and empower our people.
c) Values The core values of the department are as follows:
• Responsibility
• Efficiency
• Service Excellence
• Financial Discipline
• Professionalism
• Integrity
• Respect
• Loyalty
A.4: Legislative and Other Mandates
The department is governed by the following pieces of legislation and policy directives:
• The Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996)
• Public Finance Management Act (Act No. 1 of 1999, as amended).
• Municipal Finance Management Act (Act No. 56 of 2003)
• Promotion of Access to Information Act (Act No. 2 of 2000)
• Annual Division of Revenue Act Provincial Appropriation Act
• Provincial Internal Audit Act ( KZN Act No. 2 of 2001)
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
KZN Provincial Treasury Annual Report - 8 -
• Preferential Procurement Policy Framework Act (Act No. 5 of 2000)
• Intergovernmental Relations Framework Act (Act No. 13 of 2005)
• Borrowing Powers of Provincial Governments Act (Act No. 48 of 1996)
• Government Immovable Asset Management Act (Act No. 19 of 2007)
• Public Audit Act (Act No. 25 of 2004)
• Provincial Tax Regulation Process Act (Act No. 53 of 2001)
• KwaZulu-Natal Gaming and Betting Act (Act No. 08 of 2010)
4.1 Constitutional Mandates
Sections 213, 215, 216, 217, 218, 219, 226, and 228 of the Constitution of the Republic of South
Africa (Act 208 of 1996) deal with general financial matters for the national and provincial spheres of
government. These sections require the national legislation to give effect to the following;
i. To establish a national treasury,
ii. To introduce generally recognised accounting practices,
iii. To introduce uniform treasury norms and standards,
iv. To prescribe measures to ensure transparency and expenditure control in all spheres of
government, and
v. To set the operational procedures for borrowing, guarantees, procurement and oversight over
the various national and provincial revenue funds.
4.2 Legislative Mandates
The following pieces of legislation that give mandate and outline the key responsibilities on the
department are as follows:
4.2.1 Public Finance Management Act (Act No. 1 of 1 999, as amended) and its regulations
The Act promotes the objective of good financial management in order to maximise delivery through
the efficient and effective use of limited resources.
The key objectives of the Act may be summarised as being to:
a) Modernise the system of financial management;
b) Enable public sector managers to manage, but at the same time be more accountable;
c) Ensure the timely provision of quality information; and
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
KZN Provincial Treasury Annual Report - 9 -
d) Eliminate waste and corruption in the use of public assets.
4.2.2 Municipal Finance Management Act (Act No. 56 of 2003)
Chapter 2 of MFMA outlines the general functions of National and Provincial Treasuries.
Section 5(3) and (4) of the MFMA highlight the supervisory responsibilities of Provincial Treasuries in
relation to ensuring sound and sustainable management of the fiscal and financial affairs of
municipalities and municipal entities by establishing norms and standards and other requirements.
To the extent necessary, to comply with its responsibilities in terms of the MFMA, a provincial treasury:
a) must monitor:
i. compliance with the MFMA by municipalities and municipal entities in the province;
ii. the preparation by municipalities in the province of their budgets;
iii. the monthly outcome of those budgets; and
iv. submission of reports by municipalities in the province as required in terms of the MFMA;
b) may assist municipalities in the province in the preparation of their budgets;
c) may exercise any powers and perform any duties delegated to it by the National Treasury in terms of the MFMA; and
d) may take appropriate steps if a municipality or municipal entity in the province commits a breach of the MFMA.
4.2.3 Promotion of Access to Information Act (Act N o. 2 of 2000)
Section 14 requires the department to produce a manual with detailed information about the
department’s procedure to access it, the form to be used and which information is readily available
and which needs to be requested. Section 32 of the Act stipulates that the department must submit an
annual report to the Minister of Justice detailing requests received, those acceded or rejected and
reasons for rejection.
4.2.4 Annual Division of Revenue Act
a) This Act provides for the equitable division of revenue anticipated to be raised nationally
among the national, provincial and local spheres of government.
b) It promotes better co-ordination between policy, planning, budget preparation and execution
processes between and within the different spheres of government.
c) It promotes predictability and certainty in respect of all allocations to provinces and
municipalities in order that such governments may plan their budgets over a multi-year period.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
KZN Provincial Treasury Annual Report - 10 -
d) It promotes transparency and equity in the resource allocation process.
e) It promotes accountability by ensuring that all allocations are reflected on the budgets of
receiving provinces and municipalities.
4.2.5 Provincial Appropriation Act
These Acts provide for the appropriation of money from the Provincial Revenue Fund for the
requirements of the Province.
4.2.6 Provincial Internal Audit Act (KZN Act No. 2 of 2001)
This act provides for the establishment of the Provincial Internal Audit Unit so as to regulate the
internal audit function and to regulate the degree to which transparency, accountability and sound and
prudent management as contemplated in the Public Finance Management Act.
4.2.7 Preferential Procurement Policy Framework Act (Act No. 5 of 2000)
This act gives effect to Section 217 (3) of the Constitution by providing a framework for the
implementation of procurement policy.
The framework for the implementation of preferential procurement policy requires all organs of state to
have their preferential procurement policy and implement them within a prescribed set of criteria that
applies preference points system with emphasis to previously disadvantaged groups.
4.2.8 Intergovernmental Relations Framework Act (Ac t No. 13 of 2005)
The object of this act is to provide within the principle of co-operative government set out in Chapter 3
of the Constitution a framework for the national government, provincial governments and local
governments, to facilitate co-ordination in the implementation of policy and legislation, including:
(a) Coherent government;
(b) Effective provision of services;
(c) Monitoring implementation of policy and legislation; and
(d) Realisation of national priorities.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
KZN Provincial Treasury Annual Report - 11 -
4.2.9 Provincial Borrowing Powers Act (Act No. 48 o f 1996)
This Act provides for norms and conditions in respect of the borrowing powers of Provincial
governments and for matters incidental thereto.
4.2.10 Government Immovable Asset Management Act ( Act No. 19 of 2007)
The department has a responsibility to implement all applicable sections of this Act in managing its
immovable assets or when providing support and advisory services to the provincial departments.
4.2.11 Public Audit Act (Act No. 25 of 2004)
The department has a responsibility to comply with all applicable provisions of the Public Audit Act as
an auditee.
4.2.12 Provincial Tax Regulation Process Act (Act No. 53 of 2001)
This Act provides the regulation of intergovernmental process that must be followed by provinces in
the exercise of their power in terms of section 228 of the Constitution to impose taxes, levies and
duties, the flat-rate surcharges on the tax basis of any tax, levy or duty imposed by national legislation;
and to provide for connected therewith.
4.2.13 KwaZulu-Natal Gaming and Betting Act (Act No . 08 of 2010)
This act provides for the regulation of gaming, horse racing and batting in the Province of KwaZulu-
Natal.
4.3 Policy Mandates
The following policies outline the key responsibilities for the department:
(a) PPP policy, this policy provides guidelines for administration and managing Public Private
Partnerships transactions in the public sector environment.
(b) SCM and PPPFA policy, this policy provides guidelines for the administration of a Supply
Chain Management in line with broad government objectives. It also aims at promoting
emerging enterprises with particular emphasis on black economic empowerment.
(c) Budgeting process policies, they provide framework within which budgeting process must be
managed in the public sector in line with the relevant Acts.
(d) Treasury Regulations, provides procedural guidelines of implementation of the Public Finance
Management Act (Act 1 of 1999 as amended by Act 29 of 1999).
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
KZN Provincial Treasury Annual Report - 12 -
4.4 Service Delivery Improvement Plan
TABLE 1.1 - Main Service for Service Delivery Improvement and Standards
Main Services Actual Customers Potential Customers Standard of Service
Actual Achievement against Standards
Recruitment & HR Admin
Staff and Prospective Graduates, Government Employees and members of the Public
100% compliance to standards contained in the Service commitment Charter
100%
Human Resource Development
Staff and learners Graduates 100% achievement of WSP strategies
78%
EH&W Staff Referrals within 5
days and 4 information seminars
100% and 10 seminars
Policy Development Staff Prospective 8 policies and 8 seminars
13 policies & 12 seminars
TABLE 1.2 - Consultation Arrangements for Customers
Type of Arrangement Actual Customer Potential Customer Actual Achievements
Consultative Forum Organised labour & representatives of every Business Unit within the Department.
n/a Conducted 4 Meetings
Customer surveys Treasury staff n/a 1 Survey Exit Interviews Exiting Employees n/a 21 Exit Interviews TABLE 1.3 - Service Delivery Access Strategy Access Strategy Actual Achievements HR Portal developed and continuously maintained
Fully updated portal
TABLE 1.4 - Service Information Tool Type of Information Tool Actual Achievements
Information Seminars 22 seminars. HR Portal developed and continuously maintained
Fully updated portal
TABLE 1.5 - Complaint Mechanism Complaint Mechanism Actual Achievements
Complaint procedure 100% compliant HR Customer Services 100% per charter
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
KZN Provincial Treasury Annual Report - 13 -
4.5 Organisational Environment
The 2013/14 MTEF was the hardest, in fiscal terms, in the history of the province and required
vigilance on the part of the Provincial Treasury. Two fiscal shocks emerged which resulted in the
provincial baseline being reduced by R1 billion in 2013/14; R2 billion in 2014/15 and R2.5 billion in
2015/16. First, the results of the 2011 Census data indicated a decline in the share of population in
the province thus necessitating a downward revision of the provincial equitable share allocation.
Second, a country-wide budget reduction has also affected KwaZulu-Natal’s baseline negatively.
These budget reductions are an attempt at reigning in on public spending so that the country’s annual
deficits are moderated and the concomitant stock of debt is stabilised and reduced going forward.
Dealing with these fiscal shocks it required the Provincial Treasury to:
• Monitor expenditure more closely to ensure that the province does not overspend its budget,
• Vigorously implement cost-cutting measures to eliminate unnecessary spending,
• Reduce and eliminate irregular expenditure,
• Modernise supply chain management processes to eliminate fraud and corruption,
• Continue the deployment of the infrastructure “crack” team to ensure value for in infrastructure
development
These measures ensured that the province delivers on its mandate despite a reduced budget.
A 5. Strategic Outcome Oriented Goals
The strategic goals of the Provincial Treasury are as follows:
• To promote sound financial and fiscal management and good governance.
• To place strong emphasis on fighting poverty and creating jobs in partnership with provincial
departments through procurement targeting.
• To focus on the enhancement of broad-based BEE through effective Supply Chain
Management policies.
• To implement a policy on zero tolerance on fraud and corruption.
• To ensure good financial management with the elimination of over-expenditure and the
reduction of rollovers.
• To target government investment in service delivery.
• To promote sound cash management practices and improve liquidity in the province.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 14 -
PART B: PROGRAMME PERFORMANCE
B.1 Programme 1: Administration Purpose: The purpose of this programme is to provide service support to the core programmes
within the department.
The Strategic Objectives are:
1. To provide strategic administrative and political leadership, in order to ensure effective and
efficient service delivery as mandated by government.
2. To provide strategic financial leadership support, effective financial management, human
resources, corporate services, and information systems services to the department.
3. To ensure effective management of the department’s financial resources in line with the
statutory requirements.
4. To provide strategic human resources management support services to the department
and to ensure compliance with relevant National and Provincial legislative mandates.
Service Delivery Achievements:
Office of the MEC
• Operation “Pay on Time”
The initiative of “Operation Pay on Time” by government departments received great approval
among service providers by providing an option of approaching Treasury to intervene on their
behalf to facilitate payment within 30 days of receiving the invoices for services provided.
SMMEs often suffered and others closed down due to long turn-around time for payment by
government departments. Treasury provided a toll free number and hired staff to intervene on
behalf of service providers and engage the departments on reasons for taking more than 30
days to pay. The initiative has unblocked a number of cases and enhanced the perception of
businesses towards the government of KwaZulu-Natal.
• Infrastructure Crack Team
Infrastructure development is high on government priorities but often experience delays due to
poor financial management, lack of appropriate skills, poor project management and sometimes
political interference. The crack team is made up of experts in various areas in infrastructure
development who are normally deployed by Treasury to intervene when there are issues
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 15 -
resulting in slow progress and sometimes complete failure to meet deadlines or development
milestones. The Infrastructure Crack Team facilitates solutions and monitor progress until the
project is completed.
• Financial Education
The establishment of the KZN Financial Literacy Association made of about 106 member
organisations about 4 years ago is one of the greatest achievements of the Finance Ministry in
promoting public financial literacy. It is a unique partnership of organisations with common
interest on mitigating debt management and spending money wisely. The interventions are
packaged to meet 6 focus groups which are:
o In-school youth
o Out of school youth
o Government employees
o Women and vulnerable groups
o SMMEs and
o Traditional Leaders
Although the developments are such that the initiative will assume the status of the NPO it will
remain as one of the important achievements pioneered by the MEC for Finance which touched
a broad spectrum of the public as indicated in focus groups above.
The initiative is well received because of its positive impact on poverty alleviation, opportunities
to share good practices and teaching of basic financial management skills.
• Operation Sukuma Sakhe
Through Operation Sukuma Sakhe road shows Ministry reached a wider community of
Umgungundlovu District and encouraged functionality of War Rooms to resolve issues of service
delivery. Campaign Against Social Ills in Northdale and Vulindlela attracted huge participation of
the community and resulted in a number of arrests of drug dealers especially in Northern areas.
The other major road show attended by about 10,000 people was held in Swayimane where the
Premier and all Executive visited projects and addressed the public. The MEC and Inkosi Molefe
held another successful campaign against social ills in Impendle in July 2014.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 16 -
• Cost Cutting Measures
With the full support of the Cabinet, Treasury implemented Cost Cutting Measures to curb
increasing spending patterns by provincial departments. As a result, the R5 billion over
expenditure projection was reduced to R1,692 billion subsequently turned around. The current
financial position of the Province is healthy with an estimation of R5 billion cash positive
accumulating interest every month.
The famous Cost Cutting Measures in KZN remained in force since about three years ago and
was welcomed by National Treasury who gazetted them in 2014 and rolled throughout the
country as a way of controlling expenditure at all levels in government.
• Operation Sukuma Sakhe (OSS) discretionary allocati on
The MEC’s Operation Sukuma Sakhe discretionary allocation was used to intervene in cases of
demonstrable hardship to promote the aims and objectives of OSS campaign. Much of the
allocation was spent to purchase school uniform for over 3000 needy children identified through
the war rooms in the district.
To promote sports and intervene on social ills among youth, soccer kits were purchased for
three soccer clubs in each of the 7 municipalities to encourage healthy body and sports in
general.
Office of the Head of Department
This sub-programme provides support to the Executive Authority in providing strategic and
political direction to provincial departments, public entities, as well as municipalities.
Some achievements of the Office of the Head of Department are:
a) The Office of the Head of Department continues to ensure that the department fulfils its
mandate in terms of the PFMA and the MFMA. This includes facilitating the tabling of the
MTEF and Budget Adjustment process to Cabinet.
b) The HOD has continued with much success to emphasise the need to save so that the
Province, in the long run, can mitigate the impact of a reduction in the equitable share which
occurred as a result of a decrease in the KZN population.
c) The Head of Department has been instrumental in the implementation of key projects that
impact on financial management and social governance in KZN, such as the Provincial
Recovery Plan, Contract Management Framework and Infrastructure Crack Team.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 17 -
d) The Head of Department provides strategic leadership in policy development through his co-
chairmanship of the Economic Sector and Infrastructure Development Cluster and his
participation in various policy discussions on financial management and economic
development.
e) Under Operation Sukuma Sakhe, the Office of the HOD achieved the following:
• The HOD has been engaging private companies to be involved in Operation Sukuma
Sakhe. As a result of this, there is a teacher support programme that the department
together with KPMG started in May 2014. The programme is aimed at capacitating
teachers of mathematics, accounting and economics in eThekwini high schools in order
to improve matric results in these subjects. Through this intervention the two
organizations ultimately want contribute in addressing the skills gap within the finance
sector.
• The HOD continued with his assistance in the back to school campaign. This saw 250
poor learners from different schools in eThekwini receiving much needed school shoes.
f) The sterling work that the HOD of Provincial Treasury does has not gone unnoticed. At
the Premier Service Excellence Awards Mr Magagula won in the category for best Head
of Department for 2013/14.
Office of the CFO
The objectives of this unit are to render financial and supply chain management functions to
Provincial Treasury.
Some achievements of the Office of the CFO include the following:
• The Treasury internal control unit has been responsible for the reviewing of all invoices
produced for payment by external service providers. The unit has been able to prevent,
detect and correct any internal control deficiencies.
• An average of 98% of all invoices received was settled within prescribed 30 days period as
per treasury regulations.
• The department continued to maintain an error free asset register, there were no audit
findings raised in this area of work.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 18 -
• The CFO office has facilitated the departmental audit and received five consecutive clean
audits, and it is optimistic that a sixth clean audit will be achieved for the 2014/15 audit. All
audit issues raised during the previous audit were resolved timeously.
• The budget of the department was managed successfully and there was no over spending.
Corporate Services
This sub-programme contains various support services to ensure that the service delivery units
of Provincial Treasury have the required telecom system, transport fleet, etc. to support their
operations. Besides this, though, the Human Resource Management unit within Provincial
Treasury provides strategic human resources management and development support services
to the department and ensures compliance with relevant national and provincial legislative
mandates.
Human Resource Management
Achievements for 2013/14 are as follows:
• During 2013/14, the Human Resource Management and Development Directorate fulfilled all
of its legislative mandates and delivered an efficient and professional Human Resources
function to the department. The continuous success of the unit resulted in them once again
receiving the Gold Award from the Premier, Mr SE Mchunu, during the 2013 HR Convention
for the “Best serving Human Resources” in the Province of KwaZulu-Natal. The Unit’s
success in HR legislative compliance was further recognized through the MPAT assessment
administered by the Office of the Presidency, where the Unit was identified as a top
performer within KZN in comparison to all other HR MPAT assessments.
• The unit has successfully implemented all planned Human Resource Planning strategies for
the year, thereby ensuring a well capacitated and healthy workforce that is appropriately
skilled and empowered.
• The unit has exceeded its requirements in terms of empowering the organisation as a whole
on all Human Resource related knowledge and information in terms of the number of policies
that were developed and work-shopped. The organisation as a whole is 100 per cent
compliant to all requirements of the performance management and development system,
which is efficiently and professionally implemented and monitored by the Human Resources
Directorate.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 19 -
• Succession planning within the department, aimed at increasing the pool of female
candidates, have been successfully implemented and monitored in respect of the following
scarce skilled posts; the Provincial Accountant-General; the Senior Manager and Deputy
Manager – Banking within the Financial Assets and Liabilities Unit.
• In respect of the Wellness Clinic, there has been an overall increase in the number of
officials’ testing in respect of HIV, glucose levels, cholesterol and blood pressure. The Unit
has developed four Department Specific Operational Plans dealing with each pillar of the
EHW Strategic Framework namely, Wellness management; Health and Productivity
Management; HIV and TB Management and SHERQ Management.
• The disability audit carried out within the Department during 2013 yielded positive results
improving the disability statistics from 0.72% to 1.02%.
• Provincial Treasury’s partnership with SAICA on the Thuthuka Bursary Fund, where
Treasury is sponsoring 100 previously disadvantaged students studying to become
Chartered Accountants is in its second year since inception. The program is yielding positive
results thus far and by the end will ensure the necessary skills within departments,
municipalities and entities, assisting with prudent financial and fiscal management. The
department has budgeted R16 million for this project.
• A further empowerment strategy for women is the management training program for
unemployed Chartered Accountants who are employed for three year duration and
empowered with the necessary management competencies and skills at MMS and SMS
level, thereby empowering them to compete equally for management vacancies within the
Department and the open labour market at large.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 20 -
PROGRAMME ONE: ADMINISTRATION
1.1 Office of the MEC: To provide strategic administrative and political leadership, in order to ensure effective and efficient service delivery as mandated by government.
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
Minutes of meetings scheduled and attended.
90% attendance of Provincial Cabinet and Legislature meetings scheduled
10 17 10 15 10 15 10 14 40 61
Publications Number of publications
5 13 5 13 5 10 5 10 20 46
Free Publicity (news bulletins and articles)
Free Publicity (news bulletins and articles)
20 30 20 30 20 20 30 30 90 110
Media briefings Media briefings on service delivery
1 2 1 1 1 1 1 1 4 5
1.2 Office of the HOD: To ensure effective leadership, management and technical support to the Provincial Treasury through continuous refinement of organisational strategy and structure in compliance with appropriate legislation and best practice
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
Cabinet memoranda on budget performance approved by the MEC and tabled at Cabinet per quarter
Cabinet memoranda on budget performance approved by the MEC and tabled at Cabinet per quarter
1 budget performance report to Cabinet
1 budget performance report to Cabinet
1 budget performance report to Cabinet
1 budget performance report to Cabinet
1 budget performance report to Cabinet
1 budget performance report to Cabinet
1 budget performance report to Cabinet
1 budget performance report to Cabinet
4 Budget performance reports to Cabinet
4 Budget performance reports to Cabinet
Tabling of MTEF, Adjustment budget in terms of PFMA at the Legislature and Cabinet
Tabling of MTEF, Adjustment budget in terms of PFMA at the Legislature and Cabinet
NA NA NA NA
Table Budget
Adjustment at Cabinet
Tabled Budget
Adjustment at Cabinet
Table EPRE at Cabinet
Tabled Second Budget
Adjustments Estimate
Table EPRE and Adjustment Budget, in terms of PFMA at Legislature and Cabinet (2)
Tabled EPRE and Adjustment Budget, in terms of PFMA at Legislature and Cabinet (2)
Number of meetings attended
Number of scheduled Budget Council meetings attended
Attend all national budget council meetings
1 National Budget Council meeting
Attend all national budget council meetings
1 Technical Committee Meeting
Attend all national budget council meetings
1 National Budget Council meeting
Attend all national budget council meetings
1 National Budget Council
meeting and 1 Technical Committee Meeting
Attend all national budget council
meetings
Attended all national budget council
meetings
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 21 -
1.3 Office of the CFO: To ensure effective management of the departmental finances resources in line with statutory requirements Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
Financial Management Support Plan
Compile Budget submission and Strategic planning documents (EPRE & APP)
N/A N/A 2 2 1 1 1 1 4 4
Financial Management Support Plan
Provide legislative financial reports ( IYM X 12, AFS X 1, QPR X 4 & Annual Report X 1)
5 5 5 6 4 4 4 5 18 20
Number of reports produced
Number of SCM compliance reports generated
3 3 3 3 3 3 3 3 12 12
Implemented Financial Reform
Number of asset verification exercises
N/A N/A 1 0 N/A 1 1 1 2 2
1.4 Human Resource Management and Development : To provide optimal Human resource services to the Department
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
HR Charter Percentage of HR services as per HR Charter
100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
HR Service Seminars Number of HR seminars
2 sessions 3 seminars 2 sessions 3 seminars 2 sessions 3 seminars 2 sessions 3 seminars 8 sessions 12 sessions
HR Seminars (EWP) Number of EWP seminars
1 seminar 2 seminars + 1 during induction
1 seminar 3 EWP related seminars
1 seminar 3 EWP related seminars
1 seminar 1 Seminar 4 information seminars 10 information
seminars
HR Policy Sessions
Number of policies developed/ Reviewed and seminars conducted
2 policies and 2
seminars
3 policies and 3
seminars
2 policies and 2
seminars
3 policies and 3
seminars
2 policies and 2
seminars
3 policies and 3
seminars
2 policies and 2
seminars
4 policies and 3 seminars
8 policies and 8 seminars
13 policies and 12 seminars
HR Resource, Workplace Skills and Employment Equity Plans
Percentage achieved from the Human Resource Plan and Workplace Skills Plan
100% HRP=100%; WSP=72.67
% 100%
HRP=95.16% ;
WSP=91.13%
100% HRP=100%
; WSP=76%
100% HRP=93% ; WSP=73%
100% HRP=97% WSP=78%
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 22 -
B.2 Programme 2: Fiscal Resource Management
This programme consists of three service delivery units, namely Economic Analysis and
Infrastructure, Public Finance and Municipal Finance. The main aim of the programme is the effective
management and monitoring of the provincial and local government fiscal resources and budget
processes. It also includes the management of the Infrastructure Crack Team. The achievements of
the teams responsible for these functions are commendable, and include the successful maintenance
of the cost-cutting measures and the resultant provincial positive cash balance. These teams play a
pivotal role in the continued improvement of fiscal stability in the province.
Economic Analysis and Infrastructure
Service Delivery Achievements
This sub-programme will continue to provide an informed and well-researched fiscal framework for
the allocation of resources and the monitoring of expenditure trends. The unit will also ensure
efficient planning and management of infrastructure by the province.
Economic Analysis
• Publication of first ever Provincial Socio-Economic Review (SERO).
• Provided economic input to the Estimates of Provincial Revenue and Expenditure (EPRE).
• Provided economic input to the Municipal Finance Quarter Review Close-Out Reports.
• Publication of four Economic research reports.
• Successful publication of the following quarterly reports:
o Provincial GDP
o Provincial Risk Monitor
o Provincial Labour Market Review
o Provincial Leads and Lags Analysis
• Successful economic profiling of 9 District Municipalities.
• Successful participation in various Integrated Development Plan (IDP) workshops and
meetings.
• Successful participation in various Local Economic Development (LED) workshops and
meetings.
• Successful participation in the Financial Literacy Association, and various other research
forums.
• Successful participation in rural development projects (Luwamba : Ntambanani Projects).
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 23 -
• Successful participation in Operation Sukuma Sakhe (Mkhambathini Local Municipality).
Infrastructure Management
The Cabinet adopted the implementation of the Infrastructure Delivery Management System (IDMS)
in the Departments of Health and Education in 2012/13. This decision provided the platform for the
roll-out and participation by these two departments in the IDMS as well as the Department of Public
Works and the Provincial Treasury. The introduction of the management system ensured the overall
improvement in the implementation of Infrastructure Development Improvement Plan in the province.
The Infrastructure Unit –
• supported to National Treasury and eThekwini Municipality in piloting IDMS implementation
for municipalities and participated in National Treasury’s pilot IDMS training at the University
of Pretoria;
• undertook the training and implementation of the Infrastructure Report Management (IRM)
tool in the Departments of Education, Health and Transport;
• is responsible for the Infrastructure Crack Team and successfully deployed resources to the
Departments of Agriculture, Public Works, Education, COGTA, Human Settlements, Treasury,
ADA, Arts and Culture and KZN Wildlife as well as to the municipalities of Msunduzi,
Nongoma, Pongola, Edumbe, Uthukela, Mtubatuba, Greater Kokstad, Hibiscus Coast,
Hlabisa, AbaQulusi, Umkhanyakude, Ethekwini, uMhlatuze, Umdoni, Ulundi and Endumeni.
Special Projects
The Infrastructure and Economic unit has been instrumental in various special projects approved by
the Cabinet such as –
• the upgrading and development of five regional airports in KZN;
• the successful hosting of the KZN Winter Air, the Zululand Race of Champions and the
Durban Land, Sea and Air Festival;
• Supporting the hosting of international cycling events in Pietermaritzburg;
• Project Managing the Bhongweni and Shayamoya projects in the Greater Kokstad
Municipality;
• Hosting Corporate, Infrastructure and SME Funding Fairs whereat over R500m worth of
projects received funding; and
• Investigating the establishment of four Techno Hubs in the province and raising R120m in
donor funding therefor.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 24 -
The Economic Unit produced the following four research articles:
• Infrastructure Funding & Delivery: A KwaZulu-Natal Case Study.
• The Composition of KZN Public Expenditure and Provincial Economic Growth: A VAR and
GMM Approach.
• Growth-Maximizing Allocation of Provincial Public Capital – a KwaZulu-Natal Case Study.
• Is the Municipal Bond Market a Viable Option for KwaZulu-Natal Based Municipalities.
Public Finance
Service Delivery Achievements
The Public Finance unit continued to perform its mandate as prescribed by the PFMA and Treasury
Regulations. This included the preparation of the annual MTEF budget for the province, preparation
of the Adjustments Budget, as well as revenue and expenditure monitoring of departments and public
entities. The spending, revenue and service delivery of all 16 departments were monitored and these
inputs were used to:
o Keep Cabinet updated on a monthly basis on the budget performance of the province.
o Prepare quarterly budget performance reports.
o Brief the Finance Portfolio Committee on the Mid-year and Close-out budget performance of
the province.
o Hold bilateral meetings with departments to engage on spending trends.
• Monitoring of public entities’ spending and legislative compliance continued in 2013/14with bi-
annual budget performance reports also being prepared in respect of mid-year and end-of-year
revenue, expenditure and service delivery performance for the listed entities. Bilaterals were held
with these entities, together with their transferring departments.
• The 2013/14 Adjustments Budget for KZN was tabled in the Legislature on 28 November 2013.
• The 2014/15 MTEF budget for KZN was tabled in the Legislature on 11 March 2014. The MTEF
allocations continue to provide for enhanced service delivery for the people of KwaZulu-Natal
with continued focus on the fiscal austerity measures to ensure that we eliminate wastage from
the system. In this regard, National Treasury also issued an Instruction Note on cost-cutting for
implementation by provinces.
• Provincial Treasury continues to ensure that it provides for unforeseeable fiscal shocks, and the
province therefore continues to budget for a surplus of close to R1 billion per annum over the
next three MTEF years. This will ensure that government programmes remain funded in cases
where national tax revenues fall short of the budget in the period ahead, and acts as a cushion
when KZN’s buffer funding falls away in 2016/17.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 25 -
• Closer ties were established with the Department of Health in developing a strategy to enhance
their revenue. Provincial Treasury deployed contract workers to this department to assist in the
setting-up of claims to the RAF and medical aid schemes. However, one of the major challenges
that continue to impede efforts to optimise revenue collections is the manual system that is used
in most health institutions.
The impact of these achievements is as follows:
• The benefits of fiscal prudence have been demonstrated beyond a doubt in KZN. The fiscal
austerity measures which were first introduced in 2009/10 have borne fruit, as KZN was able to
repay its overdraft in a mere 18 months as opposed to the 3 years it was initially planned to take.
• These successes continued to be seen in 2013/14, where Provincial Treasury continued to
monitor departments’ and public entities’ spending patterns. As such, the province was able to
react appropriately when pressures arose in-year. KZN was thus able to manage its budget very
well in 2013/14, with the province over-spending by a mere 0.1 per cent or R59.915 million
(according to unaudited numbers), which is well within the acceptable norms.
• The austerity measures have become the norm in KZN, with departments and public entities
being urged to redirect savings realised from these measures, into service delivery spending
areas for the benefit of the people of the province.
• As a result, the province remains with a healthy cash positive bank balance. A report on the
provincial bank balance is submitted to Cabinet, as part of the Budget Performance Report
submitted monthly. This keeps Cabinet up to date in terms of the cash in the bank, and allows for
swift action to be taken where departments are exceeding their agreed-to overdraft limits.
Municipal Finance
This programme is responsible for ensuring the efficient budget management and accurate financial
reporting at local government and also provides technical support to delegated municipalities.
Service Delivery Achievements
The Municipal Finance Unit continued with its primary focus on promoting good municipal budgets,
sound fiscal management and monitoring the implementation of municipal budgets for all 58
delegated municipalities which includes the following areas:
Supporting all delegated municipalities in the preparation of the Medium Term Revenue and
Expenditure Framework (MTREF) Budgets,
Assessing the MTREF budgets to establish whether, these budgets are credible, sustainable and
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 26 -
comply with the provisions of the Municipal Finance Management Act (MFMA), Municipal Budget and
Reporting Regulations (MBRR) and other related legislations. The other most critical element of
assessing municipal budgets is to establish whether the budgets are funded or not, in order to ensure
the delivery of municipal services as well as the sustainability of municipalities.
Monitoring the implementation of municipal budgets and preparing the monthly and quarterly reports
as well as assessing the Mid-Year Budget and Performance Assessment reports on the budget
performance of all delegated municipalities.
The Municipal Finance Unit assessed the 2013/14 Draft Budgets of all delegated municipalities with
exception of one municipality, namely, Dannhauser Municipality. The feedback reports on key
findings of assessed draft budgets were provided to all municipalities. The Draft Budget of
Dannhauser Municipality could not be assessed due to incomplete budget information.
Prior to providing final feedback letters and comments to municipalities on assessed 2013/14 Draft
Budgets, the Unit conducted bilateral meetings with 54 municipalities to discuss its findings on the
Draft Budgets. These meetings could not be held with uMshwathi, Nquthu and Indaka Municipalities
due to the unavailability of key officials at these municipalities.
The Unit conducted a high level assessment of the adopted 2013/14 Final Budgets of all the
delegated municipalities with a view of establishing whether the Provincial Treasury’s comments and
recommendations provided on the Draft Budgets were considered in the Final Budgets. The
feedback on these assessments was also provided to all the delegated municipalities.
The Unit monitored the submission of the 2013/14 Mid-Year Budget and Performance Assessment
reports from all delegated municipalities which were due to Provincial and National Treasuries by 25
January 2014 in line with the provisions of the MFMA.
With the exception of Msinga and Dannhauser Municipalities, the assessment on the 2013/14 Mid-
Year Budget and Performance Assessment reports for all delegated municipalities was conducted
with the intention of providing input and guidance to the municipalities in the preparation of the
2013/14 Adjustments Budgets. Similar to the Draft Budget process, 49 municipalities were visited
and engaged on the findings of the assessed Mid-Year Budget and Performance reports prior to
issuing final feedback letters to 56 municipalities. The reasons for not assessing the Mid-Year Budget
and Performance Assessment reports for Msinga and Dannhauser Municipalities were due to late
submission of the report by Dannhauser Municipality while Msinga Municipality did not submit their
report in a prescribed MBRR format.
In the fourth quarter of the 2013/14 financial year, a general compliance check and a high level
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 27 -
assessment on the Adjustments Budgets for 57 delegated municipalities were conducted. The
assessment could not be conducted for one municipality, namely, uMgungundlovu District
Municipality due to late submission of their Adjustments Budget.
Municipal Finance Unit prepared all 12 monthly Consolidated Budget Performance reports on all
delegated municipalities and submitted these reports to National Treasury as per Section 71(6) of
MFMA.
Four quarterly reports on the Consolidated Budget Performance for all delegated municipalities were
prepared in line with Section 71(7) of the MFMA. The Consolidated Municipal Budget Performance
Report for second quarter in terms of municipal financial year was presented to Provincial Cabinet
Lekgotla on 20 February 2014.
The Municipal Support Program (MSP) continued to provide hands on technical support to
municipalities in 2013/14.
The program in 2013/14 concentrated on improving the Cash Flow Management processes and
enhancing Internal Controls in financial processes as well as in the Information Technology
environment. The latter half of the year saw the introduction of the Value Added Tax (VAT) initiative
which focused on the review of VAT Returns submitted by municipalities. The second aspect of the
initiative was directed towards capacitating municipal staff in preparing VAT Returns in house, thus
obviating the need to hire external consultants to undertake the task.
Support was extended to 8 municipalities (Abaqulusi, eDumbe, Umkhanyakude District, Greater
Kokstad, Hlabisa, Harry Gwala District, Ugu District and Umzinyathi District) in Cash Flow
Management, 12 municipalities (Abaqulusi, eDumbe, Mtubatuba, Umhlabuyalingana, Greater
Kokstad, Hlabisa, Indaka, Jozini, Harry Gwala District, Richmond, Ugu District and Umzinyathi
District) in Internal Control Enhancement and10 municipalities (Newcastle, Ugu District, Umzinyathi
District, uMgungundlovu District, KwaDukuza, uMtshezi, Emnambithi/Ladysmith, Zululand, Hibiscus
Coast and uMngeni) in the VAT initiatives during the year.
The benefits accruing to these municipalities will be in direct proportion to the level of commitment
shown by the municipalities to embrace the improvements and implement the enhanced processes.
In September 2013, the Joint Portfolio Committees on Finance and Cooperative Governance and
Traditional Affairs in the Provincial Legislature conducted municipal hearings. The hearings covered
amongst others, governance, administration, financial management and the state of service delivery.
In this regard, 13 municipalities including one non delegated municipality were invited to appear
before the Joint Portfolio Committee. In support of the Joint Portfolio Committee’s work, Municipal
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 28 -
Finance prepared the Budget Performance reports on the 12 municipalities invited to appear before
the Joint Portfolio Committee. The Unit was also responsible to consolidate all the reports from
various Business Units of Provincial Treasury to appraise the Joint Portfolio Committee not only on
general performance of the invited municipalities but also to reflect on various support streams
provided by Provincial Treasury to these municipalities.
As part of supporting the municipal budget preparation process for the 2014/15 financial year, the
National Energy Regulator of South Africa (NERSA) jointly with Provincial Treasury conducted a
workshop for all municipalities licensed to provide electricity service. These municipalities included
the non-delegated municipalities, namely, eThekwini Metro, Msunduzi and uMhlathuze Municipalities.
One of the objectives of the workshop was to assist these municipalities on proper process of
completing and submitting the relevant application forms referred to as ‘D forms’, for a tariff increase
on electricity service in line with Section 43 of the MFMA. The workshop was held on 25 October
2013 in Pietermaritzburg and 56 municipal officials from 22 licensed municipalities attended.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 29 -
PROGRAMME TWO: FISCAL RESOURCE MANAGEMENT
2.2 .1 Economic Analysis: To determine and evaluate economic parameters and socio-economic imperatives to inform provincial and local resource allocation
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
Publication/Report on Socio-economic output chapter, budget supplement, and budget highlights
Provide Economic Analysis for the Province
1 1 1 1 1 1 1 1 Produce 4 provincial department economic
reports
Produced 4 provincial department economic
reports
N/A N/A N/A N/A N/A N/A 1 1 Produce 1 Socio-
Economic review and Outlook report (SERO)
Produced 1 Socio-Economic review and Outlook report (SERO)
N/A 3 N/A 3 N/A 3 9 0 Produce 9 district
Socio-Economic reports
Produced 9 district Socio-Economic
reports
Updated database
To provide input to the overview of Provincial Revenue and Expenditure (OPRE)
N/A N/A N/A N/A N/A N/A 1 1 Input to OPRE on time
for tabling
Input to OPRE submitted on time for
tabling
Research papers To provide quality research for regional policy analysis
1 6 1 2 1 1 1 0 Produce 4 economic research reports
Produced 9 economic research reports
2.2.2Infrastructure Management: To Ensure efficient infrastructure planning and management in the province
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
Provincial Infrastructure Plan
Timely completion of Provincial Infrastructure Plan (PIP)
1 1 N/A N/A N/A N/A N/A N/A Compile a consolidated
report to NT by 28 February 2014
Compiled a consolidated report to NT by 28 February
2014
Reports on the implementation of the IDIP in KZN
Reports on the implementation of the IDIP in KZN
1 1 1 1 1 1 1 1 Produce 4 reports on the implementation of IDIP in the Province
Produced 4 reports on the implementation of IDIP in the Province
Progress reports on infrastructure budgets and delivery plans
Progress reports on infrastructure budgets and delivery plans
1 1 1 1 1 1 1 1 Submit 4 reports on the
infrastructure expenditure
Submitted 4 reports on the infrastructure
expenditure
Reports on site visits conducted
Reports on site visits conducted
1 1 1 1 1 1 1 1 Submit 4 consolidated report on the site visits
conducted
Submitted 4 consolidated report on
the site visits conducted
Estimates of Provincial revenue and Expenditure (EPRE)
Estimates of Provincial revenue and Expenditure (EPRE), previously Main Budget Statement.
N/A N/A N/A N/A N/A N/A 1 1 Input into OPRE on time for tabling
Input into OPRE submitted on time for
tabling
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 30 -
2.3 Public Finance : Provincial Budget Management: Ensure efficient budget and expenditure management and accurate financial reporting for provincial government (including public entities)
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
No. of chapters in MTEC reports
No. of chapters in MTEC reports
N/A N/A 16 16 N/A N/A N/A N/A
16 chapters completed 1 working day before MTEC as per budget process timetable
16 chapters completed 1 working day before MTEC as per budget process timetable
Estimates of Provincial Revenue & Expenditure
Estimates of Provincial Revenue & Expenditure
N/A N/A N/A N/A N/A N/A 1 1 EPRE on time for
tabling EPRE prepared on time for tabling
Adjusted Estimates of Provincial Revenue and Expenditure(AEPRE)
Adjusted Estimates of Provincial Revenue and Expenditure(AEPRE)
N/A N/A N/A N/A 1 1 N/A N/A AEPRE on time for
tabling AEPRE prepared on
time for tabling
Section 32 report (Monthly provincial IYM report)
Section 32 report (Monthly provincial IYM report)
3 3 3 3 3 3 3 3 12 IYM reports
p/a(submitted to NT by the 22nd monthly)
12 IYM reports p/a(submitted to NT by
the 22nd monthly)
Quarterly performance reports for provincial department
Quarterly performance reports for provincial department
1 1 1 1 N/A 1 1 N/A 3 quarterly performance
reports 3 quarterly
performance reports
2.3 Public Finance : Provincial Own Revenue : Promote optimal and sustainable revenue generation and collection by provincial departments and public entities
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
Provincial Revenue Forum
Conduct quarterly Provincial Revenue Forums
1 1 1 1 1 1 1 1 4 Forums per year 4 Forums per year
Quarterly Reports Monitoring of departmental revenue collection
1 1 1 1 1 1 1 1 Conduct quarterly 4 Quarterly Reports
Revenue input into EPRE and OPRE
Revenue input into Overview of Provincial Revenue(OPRE) and Estimates of Provincial Revenue and Expenditure(EPRE)
N/A N/A N/A N/A N/A N/A 1 1 Revenue input into
(OPRE) and (EPRE) on time for tabling
1 OPRE and EPRE
2.3 Public Finance: Special Advisory Support servic es: To promote effective and optimal financial resource allocation for provincial government ( including public entities)
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 31 -
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
Input into the revision and maintenance of DORA
Input into the revision and maintenance of DORA
Input to be submitted by due date
N/A Input to be submitted by due date
Input submitted
Input to be submitted by due date
N/A Input to be submitted by due date
Input submitted
Input to be submitted by due date as set by
NT
Input submitted by due date as set by NT
Institutionalise framework for the monitoring of provincial public entities
Institutionalise framework for the monitoring of provincial public entities
Prepare close-out report for all listed entities
Prepare close-out
report for all listed entities
Prepare 1st quarter
performance report for al entities Prepare budget MTEC
report for all listed entities
MTEC Reports
Prepare mid-year
performance report for all listed entities
Prepared mid-year
performance report for all listed entities
Prepare EPRE tabled for all listed entities
EPRE tables prepared
Implement monitoring tool and report bi-
annually for all listed public entities
Implemented monitoring tool and
reported bi-annually for all listed public entities
2.4 Municipal Finance: To monitor the budgets of municipalities in order to establish whether they implement sound fiscal management and to monitor and provide technical support to municipalities that are in financial distress.
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
Section 71(6) report (Monthly municipal IYM report) within prescribed time frame
Section 71(6) report (Monthly municipal IYM report) within prescribed time frame
3 reports 3 reports 3 reports 3 reports 3 reports 3 reports 3 reports 3 reports 12 Section 71(6)
reports 12 Section 71(6)
reports
Section 71(7) quarterly budget performance reports
Section 71(7) quarterly budget performance reports
1 report 1 report 1 report 1 report 1 report 1 report 1 report 1 report 4 Section 71(1) 7 quarterly budget
performance reports
4 Section 71(1) 7 quarterly budget
performance reports
Municipalities supported through Municipal Support Programme (MSP)
No. of municipalities supported by the Municipal Support Programme (MSP)
3 municipalities
4 municipalities
6 municipalities
6 municipalities
6 municipalities
6 municipalities
2 municipalities
13 municipalities 6 Municipalities
16 Municipalities supported though the Municipal Support Programme (MSP)
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 32 -
B.3 Programme 3: Financial Management
Purpose: To enhance financial management in the Province by taking the necessary steps to assist
and support departments and municipalities in the spheres of Financial Reporting, Asset
Management, Supply Chain Management and Financial Management Norms & Standards in
obtaining clean audit reports on an annual basis.
The Strategic Objectives are:
1. Promote sound cash management practices and improve liquidity in the province.
2. Assist departments and municipalities in the attainment of a clean audit outcome for KZN.
3. Provide substantial technical, financial and legal advice in support of all provincial PPP
projects in line with the PPP project cycle as regulated by National Treasury guidelines.
4. Support and monitor adherence of state institutions to SCM prescripts.
5. Develop cost reduction strategies for provincial departments.
6. Develop, facilitate implementation and monitor compliance with financial norms and standards
in provincial departments, municipalities and entities to enhance financial management.
Assets and Liabilities Management
Service Delivery Achievements
During the 2013/2014 financial year, site visits were conducted at all provincial departments as an
ongoing support initiative to assist with enhancing Asset management in the provincial departments.
Other engagements involved functional support on the Asset management system (Hardcat). There
have been training interventions to assist with the use of Hardcat based on support queries, training
needs analysis and special training requests.
The banking section provided a support function to 15 departments regarding bank related suspense
accounts and by liaising with departments on a monthly basis there has been a noteworthy
improvement of transactions cleared and suspense accounts having a zero balance.
During the 2013/2014 financial year quarterly risk analysis were done on bank related suspense
accounts and Chief Financial Officers of departments were made aware of the risk regarding
outstanding transactions and to ensure the timely clearing of suspense accounts.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 33 -
Municipalities were again made aware of the reporting requirements in terms of the Municipal
Finance Management Act and there has been a noteworthy improvement during the 2013/2014
financial year of reports submitted to Provincial Treasury.
The Tax section provided a training and support function to the KZN client departments to ensure the
necessary transfer of tax knowledge and skills within the province. Site visits were conducted and
training gaps identified and where necessary training was provided to all provincial departments.
KZN legislature terminated their use of the Persal payroll system and BAS Accounting system and
the tax section provided assistance to them in the closure of the tax functions for the part-year that
they utilised Persal and BAS. The 2014 annual tax reconciliations were submitted to SARS before
the deadline for each department. All risks identified in terms of the tax functions were followed up
with individual departments to ensure compliance with the tax legislation. The technical Tax manual
was adapted and enhanced to make it more user-friendly and to broaden the manual’s scope of
work. Tax Information sessions were conducted to keep departments abreast of changes to tax
legislation which impacted on the PAYE functions of the departments.
Public Private Partnerships (PPPs)
The Public Private Partnership Unit housed in this programme, provides technical support on any
possible PPP project envisaged by the Departments, Public Entities and Municipalities. The Unit, in
collaboration with the National Treasury’s PPP Unit, is presently assisting:
• KZN Provincial Department of Health in developing the exit strategy the Inkosi Albert
Luthuli Central Hospital concession period.
• KZN Public Works in investigating the possibility of procuring Office Park for KZN Provincial
Departments as a PPP.
• KZN Legislature is initiating a process of update of feasibility study and investigating the
possibility of procuring a new Office Accommodation for the Provincial Parliament as PPP.
• KZN Department of Education in investigating the possibility of procuring the New Schools,
Upgrades and Additions, Repairs and Maintenance and Non School buildings in the four pilot
nodes, i.e. iLembe, uThukela, Ugu and uMgungundlovu.
While in municipalities, the Unit assists in the following:
• ILembe District Municipality in its Water and Sanitation concession contract management.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 34 -
• KwaDukuza Local Municipality in its investigation on Solid waste Management as required by
section 78 of the Municipal Systems Act (MSA) investigation.
• Greater Kokstad Municipality in procuring the Private Party for the Design, Construction,
Operation, Maintenance and Finance of a Serviced Working Environment for the Greater
Kokstad Municipality and Commercial Development.
• Hibiscus Coast Municipality, through the Hibiscus Coast Development Agency in
development of a prime section of beach front land situated in the town of Umtentweni.
Service Delivery Achievements
• Developed terms of reference for the Inkosi Albert Luthuli Central Hospital for the
appointment of independent third party for final works survey to assess whether the project
company has fulfilled all assets upgrades as per project agreement.
• Participate in the restructuring of the funding model for the Office Park in order to make it
more affordable and provide better value for money for the Province.
• The Feasibility Study for Office Park project has been completed and in the process of
presenting it to National Treasury for Treasury Approval (“TA”) 1.
• Framework of the exit strategy for the Inkosi Albert Luthuli Central Hospital been developed.
• Managed a process of reviving the Legislature project and negotiating with Transaction
Advisor to update the feasibility study.
• The Need analysis investigation for the Department of Education for the four pilot nodes, i.e.
iLembe, uThukela, Ugu and uMgungundlovu been finalised by the Project Steering
Committee.
• Finalisation of a 3rd Review of the Concession Agreement and development of five year
implementation plan for the period 2014 - 2019 for the ILembe District Municipality.
Commitments
• Appointment of the service provider for development of Exit Strategy of Inkosi Albert Luthuli
Central Hospital.
• Attainment of Treasury Approval 1 (“TA”) for feasibility study, initial and finalise the process of
drafting bid documents for the Office Park project.
• Initiate the update of the feasibility study for KZN Legislature.
• Finalisation feasibility study process for schools project (Department of Education).
• Finalisation of the third review of concession agreement and five year implementation plan for
period 2014 – 2019 of ILembe concession contract.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 35 -
Provincial Supply Chain Management (SCM)
The Provincial SCM Unit is responsible for enforcing compliance with all Supply Chain Management
prescripts by Provincial Departments, Municipalities and Public Entities in the province through
support and interventions.
Achievements
• Interventions at the department of Sport and Recreation and, Uthukela District Municipality and
Ugu District Municipality are still on-going due to lack of capacity in those SCM components.
The interventions are in the form of direct assistance by managing the procurement and
instituting reforms as well in these institutions. In addition the department of Agriculture and
Environmental Affairs, Umkhanyakude District Municipality and Umtshezi Local Municipality are
also currently under intervention by Provincial Treasury.
• SCM compliance assessments were done at all provincial departments and municipalities.
• There are three phases to the Contract Management project. Phase 1 comprises of
implementing a contract register and filing. Phase 2 .comprises of comprehensive legal and
financial reviews of contracts concluded with third parties and the preparation of action plans to
be carried out by the institutions in order to correct any anomalies identified in the contracts
under review. Phase 3 comprises of developing a contract management framework and
conducting training. Phase1, 2 and 3 were concluded at 6 departments and 3 municipalities.
Phase 1 has been completed at the remaining 9 departments. Phase 2 is underway at these
departments.
• Provincial Treasury has started with the development of an e-Procurement tool, which will assist
in limiting instances of fraud and corruption in departments’ SCM process.
• Provincial Treasury’s SCM unit has a panel of BEE verification agencies that assist emerging
companies registered in the KZN Provincial Suppliers’ Database to attain BEE verification
status, as required by the PPPFA. This project is ongoing.
• The municipal bid appeals tribunal project is ongoing. To date 54 of the 60 municipalities had
adopted amendments to their SCM policies in order to make provision for the municipal bid
appeals tribunal (MBAT) structure. The tribunals that have been established by the Provincial
Treasury are functional and are hearing matters throughout the Province. The Provincial Supply
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 36 -
Chain Management Unit through the Office of the Provincial Secretariat and the relevant
clusters provides active support in the hearing and facilitation of MBAT matters.
• The department bid appeals tribunal was also quite active. A structure has been finalised for the
function and Treasury is in the process of recruitment for these posts. The table below gives
summary of appeals for departments in 2013/2014.
DEPARTMENTS APPEALS STATUS
APPEALS
RECIEVED
WITHDRAWN UPHELD DISMISSED RE-
EVALUATION
PENDING OTHER
HEALTH 251 143 20 50 20 10 8
TRANSPORT 115 35 9 29 22 4 16
WORKS 26 10 1 10 0 0 5
EDUCATION 12 3 0 6 2 0 1
AGRICULTURE 2 0 0 1 0 0 1
TOTAL 406 191 30 96 44 14 31
Financial Reporting
Service Delivery Achievements
• Back to Basics
The Provincial Treasury has adopted a “Back to Basics” financial management approach to
address audit risks and negative audit outcomes. This approach comprises the following key
elements:
o An analysis of basic financial management processes and procedures.
o Identification of audit risk areas and key internal control measures to mitigate potential
risks.
o Sustainable skills transfer, training, and the monitoring of key controls and procedures to
address audit risks and key control deviations.
This Program has achieved great success for the 2012/13 financial year as majority of the
municipalities have prepared the annual financial statements internally, with the assistance from the
Financial Reporting officials. The assistance provided to these municipalities has contributed
positively to maintaining or improving the audit opinions for the 2012/13 financial year.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 37 -
Municipality Name 2012/13 2011/12 Endumeni Municipality Unqualified Unqualified Ntambanana Municipality Clean Unqualified Umkhanyakude District Qualified Disclaimer Umgeni Municipality Unqualified Unqualified Mandeni Municipality Unqualified Unqualified Umhlabuyalingana Municipality Unqualified Disclaimer Ubuhlebezwe Municipality Clean Unqualified Greater Kokstad Municipality Unqualified Qualified Sisonke District (Harry Gwala) Municipality Unqualified Qualified Ingwe Municipality Unqualified Unqualified KwaSani Municipality Unqualified Unqualified uMshwati Municipality Unqualified Unqualified Richmond Municipality Unqualified Unqualified Umzumbe Municipality Unqualified Unqualified Umdoni Municipality Unqualified Unqualified Mpofana Municipality Unqualified Unqualified
• Assistance to departments
Treasury assisted The Departments of Public Works, Royal Household and Social Development with
resolving key prior year audit issues to ensure an unqualified audit opinion in the 2013/14 financial
year.
Future Plans
The Financial Management and the Internal Audit units will continue to complement each other by
both proactively identifying and addressing key financial management risks.
The following special areas of concern will require proactive intervention in 2014/15 to ensure clean
audits in 2014/15:
• Movable Assets
Treasury will continue to assist the Department of Health in the completion and updating of the
movable assets register.
• Capped leave
Treasury is currently project managing a joint project with the Department of Education to resolve
audit qualifications relating to leave records and capped leave.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 38 -
• Assistance to departments
Treasury will continue to assist both the Department of Social Development and Royal
Household on financial management audit risk areas.
Norms and Standards
Service Delivery Achievements
1. Policy assistance to Departments
The unit developed a new instruction note on behalf of the Provincial Treasury’s Banking
Section, namely “Cancellation and Re-issue of Persal Cheque Payments” which was
implemented within departments with effect from 1 June 2013. In addition, 24 existing instruction
notes were reviewed as per the annually determined review schedule. All proposed
amendments were consulted with departments and proposals incorporated, where applicable,
prior to adoption and implementation.
2. Policy assistance to Municipalities and Municipa l Entities
The unit provided support on finance-related policies to eleven municipalities that included
uMhlabuyalingana local, uThukela district, Imbabazane local and uMkhanyakude district
municipalities. Emanating out of numerous ad-hoc requests that the unit received during the
financial year, policy assistance was rendered to Hibiscus Coast Development Agency in the
development and review of its financial management policies.
3. Monitoring Compliance and Evaluation
A compliance monitoring and evaluation exercise was undertaken to assess financial
management compliance within provincial departments. Questionnaires were developed which
departments were required to complete on a quarterly basis and provide reasons for non-
compliance for assessment purposes. A compliance checklist was developed per questionnaire
where documentary evidence was requested to support the responses indicated in the
questionnaires.
The completed questionnaires were analysed in terms of financial implications and
consequences and compliance assessment reports issued which detailed compliance
achievements and provided recommendations to address identified weaknesses or non-
compliance that were achievable and implementable within reasonable timeframes. Additional
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 39 -
guidelines were provided for incorporation within the working environment, where applicable, to
strengthen existing internal control measures and enhance financial management and control.
Development and Implementation of FMCMM
The unit assisted National Treasury in the review of the upgraded diagnostic compliance tool,
Financial Management Capability Maturity Model (FMCMM). The questions per module relating
to Governance, Financial Management, Reporting, Performance Management and Supply Chain
management were analysed and input provided, where applicable, with additional questions
proposed for inclusion in the various modules. The unit furthermore developed foundation level
questions relating to the compliance tool in respect of Delegations, Bid-Committees, Anti-
Corruption, Ethics and Financial Misconduct. Moreover, a request was received from National
Treasury to assist with the piloting process prior to the Model’s roll-out to treasuries and
departments in all the provinces.
Supporting and Interlinked Financial Systems
Service Delivery Achievements
Treasury made progress in providing IT solutions and services that support the achievement of
the department’s goals and providing technology infrastructure that is capable of adapting to
changes in the business environment and in supporting the department’s information and
reporting requirements. The following key projects were completed:
• The leave process was automated to improve the management of leave and provide
greater audit ability across the department.
• Treasury implemented 67% of the electronic document and records management system
project to improve the efficiency of storage, search and retrieval of documents in the
department. The system addresses the legal obligation to comply with National Archives
and Records Services Act of 1996.
• The Business Continuity Plan was reviewed, tested and implemented.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 40 -
PROGRAMME THREE: FINANCIAL MANAGEMENT
3.1 Assets and Liability Management: • To ensure the provision of an effective and efficient transversal advice ,guidance and support as well as monitoring compliance to Asset Management
prescripts in all provincial departments. • To promote sound cash management practices and improve liquidity in the province; and • To assist departments and municipalities in the attainment of a clean audit outcome for the province.
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
Inform Departments on tax legislation and regulations iro payroll tax
Conduct Tax Information Seminar Annually
2 sessions Nil 2 sessions 3 sessions 2 sessions Nil 2 sessions Nil 2 Sessions 3 Sessions
Quarterly Reports
Quarterly risk analysis per dept to ensure compliance to tax legislation
16 reports 16 reports 16 reports 16 reports 16 reports 16 reports 16 reports 16 reports 64 Reports 64 Reports
Funding of Provincial bank account
Provide quarterly assessment reports to dept on the status of bank related suspense accounts.
16 Assessment
reports
15 Assessment
reports
16 Assessment
reports
15 Assessment
reports
16 Assessment
reports
15 Assessment
reports
16 Assessment
reports
15 Assessment
reports
64 Assessment reports
60 Assessment reports
Monitor early completion of Bank Reconciliation
Produce monthly reconciled bank reconciliations per department
48 Reconciled
bank reconciliation
45 Reconciled
bank reconciliation
48 Reconciled
bank reconciliation
45 Reconciled
bank reconciliation
48 Reconciled
bank reconciliation
45 Reconciled
bank reconciliation
48 Reconciled
bank reconciliation
45 Reconciled
bank reconciliation
192 Reconciled bank
reconciliations
180 Reconciled bank
reconciliations
Municipal bank accounts.
Produce quarterly report on withdrawals from municipal bank accounts
1 reports on withdrawals
1 reports on withdrawals
1 reports on withdrawals
1 reports on withdrawals
1 reports on withdrawals
1 reports on withdrawals
1 reports on withdrawals
1 reports on withdrawals
4 Reports on withdrawals
4 Reports on withdrawals
Sound Asset Management Practices in Provincial Departments
To promote sound Asset Management Practices in Provincial Departments
1 seminars/ training
workshops
3 Hardcat training
1 seminars/ training
workshops
1 seminars/ training
workshops
1 seminars/ training
workshops
0 seminars/ training
workshops
1 seminars/ training
workshops
1 seminars/ training
workshops
4 Seminars/Training
Workshops
5 Seminars/Training
Workshops
3.2 Public Private Partnership (PPP): To provide substantial technical, financial and legal advice in support of all provincial PPP projects in line with the PPP Project Cycle as regulated by National Treasury guidelines.
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
Seminars / workshops conducted for provincial departments and public entities
No. of seminars/workshops conducted for provincial depts. and public entities
N/A 3 1 Nil N/A N/A 1 Nil 2 3
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 41 -
Number of seminars / workshops conducted for municipalities and municipalities entities
No. of seminars/workshops conducted for municipalities and municipal entities
1 2 N/A N/A 1 2 N/A N/A 2 4
Reports for Prov. Treasury management and NT PPP unit
No. of reports for Provincial Treasury management and MEC
1 3 1 8 1 3 1 3 4 17
Reports on closed deal.
No. of reports on closed deals
1 3 1 3 1 3 1 3 4 12
3.3 Supply Chain Management: • Support and monitor adherence of departments, Public Entities and Municipalities to SCM prescripts. • Develop cost reduction strategies for provincial departments and municipalities. • Provide a supplier monitoring mechanism for the Province to ensure that Supplier Information is reliable.
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
Training SCM practitioners in Provincial departments and municipalities
No. of SCM training sessions and information sessions conducted
2 3 3 7 3 2 2 2 10 14
1 1 2 0 1 0 2 0 6 1
No. of assessments No. of compliance assessments
20 15 20 27 18 16 18 22 76 80
No. of policies and practice notes reviewed and issued
No. of policies and practice notes reviewed and issued
1 4 1 1 1 0 1 0 4 5
3.4 Financial Reporting:
• To analyse province-wide compliance, implementation and maintenance of generally recognized Accounting practice and financial systems to fairly present the consolidated financial position of KZN.
• To analyse financial and audit reports in order to establish and formulate strategies to address weaknesses in the financial management process in departments, public entities and municipalities as envisaged in the Public Finance Management Act and the Municipal Finance Management Act.
• To enable client departments to address fast-paced needs evolving from auditor general reports by generating solutions and support. To provide project management and consulting solutions to Departments to expedite financial reporting.
• To facilitate the development of transversal developmental programmes and projects aimed at improving financial management and accounting practices in provincial departments, public entities and Municipalities.
• To impact directly on value for money and service delivery enhancements through business-process re-engineering of key cost drivers.
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 42 -
Consolidated Financial Statements
Consolidated AFS for Provincial Departments, Provincial Revenue Fund and Public Entities
N/A N/A
Compile consolidated
AFS for FY12/13
Compiled consolidated
AFS for FY12/13
Tabling of consolidate AFS for
FY12/13 in legislature
Tabled Departments and Revenue
Fund Consolidated
AFS
N/A N/A Compile
Consolidated AFS for FY12/13
Compiled Consolidated AFS for FY12/13 and
tabled Departments and Revenue Fund
N/A N/A
Compile consolidated
AFS for FY12/13
Compile AFS Revenue Fund for FY12/13
Tabling of consolidate AFS for
FY12/13 in legislature
Tabled Revenue Fund
AFS N/A N/A
Revenue Fund AFS tabled in
Legislature for FY 12/13
Compiled and Tabled Revenue
Fund AFS
Training on AFS
Preparation of the AFS for the Revenue Fund AFS Support and Training to Provincial departments
AFS training workshop
AFS training workshop
N/A
N/A
N/A N/A
AFS training workshop
Not achieved – to be done in next quarter
AFS training workshop
AFS training workshop
Pre-audit review in 16 departments
Pre-audit review in 16 departments
N/A
N/A
N/A
N/A
N/A N/A Pre-audit review in 16 departments
Pre-audit review in 16 departments
Audit Outcomes
Provincial Audit Outcome Analysis
N/A N/A
Summary of Audit Outcome analysis after AG’s Audit Report
Summary of Audit Outcome analysis after AG’s Audit Report
N/A N/A N/A N/A Summary of Audit Outcome analysis after AG’s Audit
Report
Summary of Audit Outcome analysis after AG’s Audit
Report
Financial Management Monitoring support to Public Entities
N/A N/A N/A N/A N/A N/A
Pre-audit readiness
assessment in 12 public entities
To be done in quarter
Pre-audit readiness
assessment in 12 public entities
0
Municipal Support Programme
General financial management support to municipalities
N/A N/A N/A N/A N/A N/A Summary of audit outcome
analysis
Summary of audit
outcomes- Municipalities
Summary of audit outcome analysis
Summary of audit outcome analysis
N/A N/A N/A N/A N/A N/A
Pre-audit assessment report in 12 identified
municipalities
To be done in quarter 2
Pre-audit assessment report in 12 identified municipalities
0
Progress reports on on-site financial management support to 12 identified
municipalities
Progress reports on on-site financial management support to 15 identified
municipalities
Progress reports on on-site financial management support to 12 identified
municipalities
Progress reports on on-site financial management support to 15 identified
municipalities
Progress reports on on-site financial management support to 12 identified
municipalities
Progress reports on on-site financial management support to 15 identified
municipalities
Progress reports on on-site financial management support to 12 identified
municipalities
Progress reports on on-site financial management support to 15 identified
municipalities
Progress reports on on-site financial
management support to 12 identified
municipalities
Progress reports on on-site financial management support to 15 identified
municipalities
3.5 Norms and Standards : To develop, facilitate implementation and monitor compliance with financial norms and standards in provincial departments, municipalities and entities to enhance financial management.
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 43 -
Number of policies and practice notes developed/reviewed and issued
Number of policies and practice notes developed/reviewed and issued
7 policies/practice notes reviewed
28 practice notes
repealed and issued
as instruction notes.1
Instruction and
reviewed /4 policies
developed and 11 policies reviewed
7 policies/ practice notes
reviewed
6 Instruction notes
reviewed for departments /2 policies developed
and 5 policies reviewed for municipalities
7 policies/practice notes reviewed
8 Instruction notes
reviewed for departments /3 policies developed and 5 policies
reviewed for municipalitie
s
7 policies /practice notes
reviewed
7 Instruction notes reviewed for departments
/9 policies developed and 10 policies reviewed for municipalities
28 policies/practice notes
developed/reviewed
27 Instruction notes reviewed and 1
policy developed for departments/19
policies developed and 31 reviewed for
municipalities
Number of departments assessed and monitored
Number of departments assessed and monitored
All departments assessed and monitored
No departments
were assessed in this quarter
All departme
nts assessed
and monitored
All departments assessed and monitored
All departments assessed
and monitored
All departments assessed
and monitored.
All departme
nts assessed
and monitored
All departments assessed and monitored
All departments assessed and
monitored as per units Annual Plan
All departments assessed and
monitored as per units Annual Plan, except quarter 1.
3.6 Support and Interlinked Financial Systems: To align ICT initiatives with the strategic direction of the department through the provision of IT support, training of users and the acquisition and development of relevant information system solutions as an enabler of business processes.
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
Policy Reviews Number of policy reviews completed
1 1 1 1 1 1 1 2 4 5
Compliance Reports Number of compliance reports completed
3 3 3 3 3 3 3 3 12 12
Policy Information Sessions
Number of information sessions conducted
2 2 2 3 2 2 2 2 8 9
Mean Time To Resolve ( MTTR) - Provincial
Mean time to resolve
8 hours 54 mins 8 hours 48 mins 8 hours 45 mins 8 hours 44 mins 8 hours 48min
Percentage network uptime
Percentage network uptime
99% 99% 99% 99% 99% 99% 99% 97% 99% 99%
Mean Time To Resolve ( MTTR) – Transversal Systems
Mean time to resolve (Transversal systems)
8-24 hr MTTR 2hrs 29 min 8-24 hr MTTR
1hr 15 min 8-24 hr MTTR
5hrs 8-24 hr MTTR
48 mins 8-24 hr MTTR 2hrs23min
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 44 -
B.4 Programme 4: Internal Audit
Purpose : The Internal Audit component provides a legislated function which covers an independent
objective assurance and consulting services on issues of internal controls, risk management and
governance as provided in the PFMA and Standards for the Professional Practice of Internal Auditing
and in line with the principles in the King Report and its scope, comprehensively defined in chapter 3
of Treasury Regulations. These services are further legislated through the Provincial Internal Audit Act,
Act No. 2 of 2001.
The Provincial Internal Audit Services (PIAS) component of Provincial Treasury supports all provincial
departments, as well as some public entities and municipalities in areas of internal audit, risk
management, governance and forensic investigations. The component has formulated a three-lines-of-
defence mechanism which entails:
• Providing assurance on the effectiveness of governance.
• Risk management.
• Compliance systems and controls.
The Strategic Objectives are:
1. To promote a culture of accountability and transparency.
2. To provide an efficient, effective and economical assurance service.
3. To foster solid client relationships.
4. To build capacity within and outside the unit.
5. To promote good governance through effective risk management.
6. To promote a culture of zero tolerance for fraud and corruption
Service Delivery Achievements:
Assurance Services
Achievements
• Assurance Services provided management at Departments and Public Entities with an advisory
function on the appropriate design and effective implementation of internal controls over various
areas of operations by issuing 257 audit report during the 2013/14 financial year. These audit
reports covered various focus areas such as Supply Chain Management, Asset Management,
Human Resource Management, Predetermined Objectives, some departmental special projects
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 45 -
that has undergone the performance and value for money audit reviews and other business
activities.
• A strong focus area was Financial Audits where the Unit reviewed key financial controls at 8
Provincial Departments and 2 Public Entities. The Interim Financial Statements were reviewed to
provide management with some assurance on the financial statement preparation processes. This
was supplemented by a review of the Annual Financial Statements prior to submission to the
Auditor General.
• In addition to focusing on reviewing areas of control and financial management, the Unit extended
its offering to include much needed value adding services on operational process design. The Unit
commenced with a project to assist the Department of Health review the effectiveness of its
referral paths in hospitals and to provide input and guidance on the development of a Referral
System policy and procedure document.
• With the increased focus on value for money in the province, the Unit continued to enhance its
services on performance audits and commenced with various audits on the efficiency,
effectiveness and economical utilization of resources. These included an audit on the One-Home-
One Garden programme, Primary Healthcare services by Health Department, Infrastructure
Projects in 4 departments; as well as auditing Travel and Subsistence expenditure across all
provincial departments. Some of these projects will continue into the 2014/15 financial year.
• Information Technology provides the foundation to many processes and is a high risk area. The
unit continued to conduct audit reviews on transversal IT systems such as the Biometrics system,
PERSAL and BAS. These IT audit reviews have now been extended to the IT systems that
complement the departments’ core business activities. Together with this, support and advice was
also provided by reviewing IT Strategies and providing management with assurance during the
financial year on the progress made to address AG findings in preparation for the statutory audit.
• In line with its role of promoting sound management and good governance practices, the
Assurance Services component participated in the Premier’s Provincial Service Excellence Awards
and performed exceptionally well by winning the Silver Medal. This was the second time the
component won a category in these awards.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 46 -
Risk and Advisory Services
Achievements
The unit assists provincial departments, public entities and municipalities with the facilitation of risk
assessments. For the past financial year (13/14), the unit facilitated over 60 risk assessments at these
institutions.
For provincial departments, the Unit also tracked and reported, on a quarterly basis, to the Provincial
Audit and Risk Committee on progress made by provincial departments in the implementation of
agreed-upon risk mitigation strategies. For municipalities, the Unit embarked on an exercise of
evaluating the adequacy and effectiveness of internal audit functions and audit committees of all
delegated municipalities. The results of this exercise, which is envisaged to be completed by August
2014, will be used to provide relevant assistance and interventions in municipalities with weak internal
audit functions and audit committees.
Forensic Investigations
Achievements
The unit continued to assist our provincial departments, public entities and municipalities with forensic
investigations. Since 2009, the unit has finalised over 86 investigations, and is currently busy with
about 53 outstanding investigations.
The unit continues to work with law enforcements units such as the Hawks, SAPS, SIU, and partakes
in the work of the Anti-Corruption Task Team in the province. The unit has embarked on the process
of developing a Fraud Case Management System that will, among other things, consolidate and track
forensic investigations across our provincial administration.
.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 47 -
PROGRAMME FOUR: INTERNAL AUDIT
4.1 Assurance Services: To provide departments, mun icipalities and public entities with the following; • Provide an efficient, effective and economical assurance service. • Build and maintain solid client relationships through providing value added service. • Enhance capacity within and outside the Unit.
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
No. of IA Annual operational plans and a rolling three year strategic plan
No. of IA Annual operational plans and a rolling three year strategic plan developed and approved
21 23 N/A N/A N/A N/A N/A N/A 21 23
Audit Committee reports to the Cabinet
Annual Audit Risk Committee report on clients’ areas of risk areas of risk management, governance and internal control submitted to MEC: Finance
N/A N/A 1 1 N/A N/A N/A N/A 1 1
Internal Audit Reports
No. of risk based audit reports including follow up audit reports on financial, IT, performance and governance audits
50 40 50 52 55 64 55 69 210 225
Internal Audit Reports on Performance Information
No. of Audit reports on predetermined objectives
N/A N/A N/A N/A 15 5 6 16 21 21
Minutes of meetings
No. of meetings held between clients and the cluster Audit & risk Committee
15 32 15 14 15 16 15 16 60 78
Training and Development Programmes
No. of training and development programmes attended
4 4 4 4 4 4 4 3 16 15
An Independent internal and external quality assurance review
No. of internal and/independent external quality assurance reviews conducted
1 0 N/A N/A 1 1 N/A N/A 2 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 48 -
4.2.1 Risk Management: To promote good governance through assisting provincial departments, public entities and municipalities to practice effective risk management.
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
Number of enterprise wide risk reports
Risk reports issued for municipalities
5 5 7 13 8 27 10 7 30 52
Quarterly reports
Updated risk reports issued for depts. and public entities
N/A 0 10 7 10 9 2 8 22 24
Risk Management Bi-annual Risk follow-up reports issued to clients
5 15 7 15 8 15 10 15 30 60
Consolidated Risk Profiles
No. of Consolidated Risk profiles developed
N/A N/A N/A 1 1 0 N/A N/A 1 1
Risk Management Reports
No. of risk management maturity gap analysis reports for public entities
5 0 5 15 5 0 N/A N/A 15 15
ERM Compliance Reviews
No. of ERM compliance review/follow up for municipalities
5 0 10 0 10 12 5 19 30 31
Audit Committee Quarterly Reports
Audit Committee quarterly reports on clients areas of risk management and risk governance
N/A 15 N/A 16 N/A 16 N/A 16 4 63
Training Sessions Conducted
No. of training/risk awareness on governance and risk management sessions
2 8 5 8 3 10 N/A 13 10 39
Minutes of Risk Management Forum and Feedback
No. of risk management forum meetings held
1 0 1 1 1 1 1 1 4 3
4.2.2 Forensic Services: To promote a culture of zero tolerance for fraud and corruption.
Programme / Sub-programme Output
Performance Measures
1stQtr Planned Output
1stQtr Actual Output
2ndQtr Planned Output
2ndQtr Actual Output
3rdQtr Planned Output
3rdQtr Actual Output
4thQtr Planned Output
4thQtr Actual Output
Target for 2013/14 as per APP
Actual Output 2013/14
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 49 -
Internal Audit Reports and an updated fraud risk database
No. of reviews on the status of fraud management in the departments
N/A N/A 8 8 4 8 4 4 16 20
Forensic Audits performed and investigations as per clients requests and referrals from the Assurance team
Number of Forensic Audits performed and investigations as per clients requests and referrals from the Assurance team
5 0 7 10 8 5 5 10 25 25
Forensic audit reports, Audit Committee reports and Accounting Officer reports
Updated register of forensic investigations
1 1 1 1 1 1 1 1 4 4
Follow-up investigation reports
Number of follow ups on completed investigations
4 0 4 5 4 14 4 15 16 34
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 50 -
B.5 Programme 5: Growth and Development
Purpose: The aim of this programme is to provide for specific departmental approved events and
initiatives not catered for in any other programmes which will provide development for the province.
The Strategic Objectives are:
1. To stimulate economic growth and employment creation through funding of strategic investment
initiatives.
2. To provide funding instruments that will broaden participation of PDIs in business and the
economy.
Service Delivery Achievements
Pre and Post Budget Road-shows were held in the Province. The objectives of the Budget Road-
shows were to communicate and educate the communities on how the budget is put together, as well
as to get inputs from the communities. Road-shows were held in the following areas:-
• Jozini - Umkhanyakude
• Emalangeni – Ugu
• Hluhluwe
• Hibiscus Coast
• Nongoma
• KwaSani
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014
KZN Provincial Treasury Annual Report - 51 -
PROGRAMME FIVE: GROWTH AND DEVELOPMENT
5.1 Other Developmental Initiatives: To provide specific departmental approved events and initiatives not catered for in any other programmes that will provide development for the province.
Programme / Sub-
programme Output
Performance
Measures
1stQtr
Planned
Output
1stQtr
Actual
Output
2ndQtr
Planned
Output
2ndQtr
Actual
Output
3rdQtr
Planned
Output
3rdQtr
Actual
Output
4thQtr
Planned
Output
4thQtr Actual
Output
Target for 2013/14 as
per APP
Actual Output
2013/14
100% response to
determinations of
Technical Committee
Number of events co-
ordinated successfully 1 2 N/A 6 1 8 3 5 5 21
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
GOVERNANCE INFORMATION: 31 MARCH 2014
KZN Provincial Treasury Annual Report - 52 -
PART C: GOVERNANCE
C. 1 Introduction
The KZN Provincial Treasury is committed to maintaining the highest standards of governance
which we believe is essential to promoting public confidence and managing public finances. We
have adopted a code of business ethics which sets out principles to guide employees in carrying
out their duties and responsibilities to the highest standards of personal and corporate integrity
when dealing with stakeholders. In addition the department has oversight committees, shared
internal audit services including the audit committee responsible for providing guidance and
advice.
C. 2 Risk Management
Provincial Treasury has an approved risk management policy and a risk management framework.
The department regularly conducts risk assessments to determine the effectiveness of risk
management strategies and to identify new and emerging risks. Line management are responsible
for identifying, evaluating, managing both risks and opportunities in their responsibility areas with
technical and operational support provided by the risk management unit. The risk management
unit also maintains the consolidated risk register and reports thereon. There is a risk management
committee in place that advises management on the overall system of risk management,
especially the mitigation of unacceptable levels of risk. The committee operates under the terms of
reference approved by the Accounting Officer and comprises of select members of Provincial
Treasury’s senior management team. The committee meets every quarter. The Audit Committee
further provides an independent oversight over the system of risk management and monitors the
effectiveness of the departments’ risk management systems.
During the period under review KZN Provincial Treasury assessed its risks relative to its annual
performance plans. Both internal and external conditions that may impede the achievement of the
goals expressed in the annual performance plans were identified and evaluated. There have been
major improvements in the management of risks within the department as ninety-nine percent of
action plans for the prior year’s assessment were implemented. The department is confident that
risks are effectively managed. The Provincial Treasury’s internal audit plan included audits
designed to test the adequacy, effectiveness and economy of the internal control systems to
counteract the effects of the significant risk factors.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
GOVERNANCE INFORMATION: 31 MARCH 2014
KZN Provincial Treasury Annual Report - 53 -
C. 3 Fraud and Corruption
Provincial Treasury supports and fosters a culture of zero tolerance to fraud in all its
manifestations. In addition, all fraud is investigated and followed up by the application of all
remedies available within the full extent of the law as well as application of appropriate prevention
and detection controls. It is the responsibility of all employees to report all incidents of fraud to their
immediate supervisors.
Provincial Treasury has an approved fraud prevention plan which includes the whistle blowing
policy, fraud policy and responses plan. This plan is communicated to all departmental officials
through the intranet, quarterly meetings and fraud awareness campaigns/ posters. There is an anti
– corruption hotline which further encourages anonymous reporting of fraudulent activities. In line
with the Protected Disclosures act, the whistle blowing policy encourages employees to report
matters of concern without any fear of victimisation; we will follow up on all information received
through the hotline
C. 4 Minimising Conflict of Interest
Provincial Treasury employees are expected to avoid personal activities and financial interest
which could conflict with their responsibilities to the department. In preventing conflict of interest,
financial disclosure forms are completed by all departmental officials on an annual basis. The
financial disclosures statements includes certification that the assets and financial activities of each
staff member, their spouses and family do not pose a conflict of interest with their official duties. In
addition, all employees in the Chief Financial Office (CFO) unit are required to sign a code of
conduct.
All Bid Committee members are required to sign declaration of interests and impartiality forms. Bid
Committee members are required to excuse themselves if a conflict of interest exists in the
process. Bidders are expected to declare their personal and business interests on the standard
bidding documents. All records of disclosure are kept by the Chief Financial Office.
C. 5 Code of Conduct
Provincial Treasury commits itself in ensuring that its employees display the highest possible
standard of ethical behaviour and that they maintain the highest level of professionalism in their
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
GOVERNANCE INFORMATION: 31 MARCH 2014
KZN Provincial Treasury Annual Report - 54 -
interaction with the public as well as other stakeholders. No employee may receive any gift or
payment which is, or may be construed as being, a bribe.
All employees are expected to comply with the code of business ethics approved by the
department.
C. 6 Health and Environmental Issues
The Department is committed to taking every reasonable precaution to ensure a safe working
environment for all employees as well as preserving the environment in which it operates. There’s
a departmental evacuation plan and procedures in place. The plan gives directive to evacuate
employees in case of disasters in buildings.
C. 7 Portfolio Committees
The department has not been called on portfolio committees before as there have been no matters
of concern.
C. 8 SCOPA Resolutions
There were no resolutions specific to Provincial Treasury in the current financial year.
C. 9 Prior Modifications to Audit Reports
There were no modifications to the previous year’s audit report.
C. 10 Internal Control Unit
Provincial Treasury has a sound system of internal controls based on policies and guidelines to
assist management to manage a wide range of risks faced by the department. There is an ongoing
process of identifying, evaluating, managing significant risks and internal controls. The identified
weaknesses are promptly addressed. During the financial year under review, internal control
activities included amongst others the following:
• Reviewing all invoices produced for payment by external service providers. This ensured
that all SCM related deviations are timeously detected and corrected where necessary.
• Conducting workshops to create awareness on fraud and fraud prevention
• Conducting risk assessments for the department. This ensured the identification and
evaluation of all risks faced by the department at an operational level.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
GOVERNANCE INFORMATION: 31 MARCH 2014
KZN Provincial Treasury Annual Report - 55 -
• Ensuring the monitoring and evaluation on the implementation of effective and efficient
internal control and risk management strategies within the department
C. 11 Internal Audit and Audit Committees
1. Audit Committee
1.1 Objective of the Provincial Audit and Risk Comm ittee
The Provincial Audit and Risk Committee (PARC) has been established to assist the KZN
Provincial Departments in fulfilling its oversight responsibilities for the integrity of financial reporting
processes, system of internal control over financial reporting, audit process for monitoring
compliance with laws and regulations and KZN Provincial Government Code of conduct, fraud
prevention, the risk management process and any other good governance processes.
The PARC reports that it has complied with its responsibilities arising from the Public Finance
Management Act, No.1 of 1999 (PFMA), Treasury Regulations, including any other statutory
regulations. The PARC also reports that it has adopted appropriate formal terms of reference as its
Provincial Audit and Risk Committee Charter, regulated its affairs in compliance with this charter
and discharged all its responsibilities as contained therein.
1.2 Key Activities of the Provincial Audit and Risk Committee during the year
The PARC exercised their responsibility as embedded in the PARC Charter through the:
• Review of the effectiveness of the internal control systems in the provincial departments
including the internal financial controls and accounting systems through the Internal Audit (IA)
reports, wherein managements’ attitudes and response to internal control issues were
evaluated;
• Review of IT Governance systems and their related internal controls;
• Review the adequacy and reliability of financial information provided and financial statements
wherein the committee commented on the preparation of the financial statements as per the
legislative frameworks;
• Provide risk oversight on financial reporting risks, fraud risks, IT risks and all other strategic
and operational risks based on the scope of the internal and external audits;
• Review the adequacy and effectiveness of fraud prevention strategies, policies or procedures
and systems to prevent, detect fraud and corruption;
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
GOVERNANCE INFORMATION: 31 MARCH 2014
KZN Provincial Treasury Annual Report - 56 -
• Considered accounting and auditing concerns identified and reported by internal and external
auditors for the committees intervention;
• Review of the effectiveness of the IA in relation to their annual work programme, work co-
ordinated with the external auditors, investigation reports on allegations received and
investigated by IA as well as departments’ management response to recommendations
provided; and
• Review of the departments’ compliance with legal and regulatory provisions.
1.3 Information on the Audit Committee Members
The following seven external members of the PARC were appointed on the 1st June 2011 to
assume Audit and Risk responsibilities over a period of three (3) years. The Committee members’
attendance of the meetings during 2013/14 financial year is as depicted in the following table:
Name Qualifications Internal or External member
If Internal, position in
the Department
Date Appointed
Date Resigned
No. of meetings attended
Mr L M Mangquku CA(SA) MBL External N/A 1 June 2011 Not applicable 16
Mr T Boltman
CIA CCSA CFE CGPA
External N/A 1 June 2011 Not applicable 8
Ms M S Mothipe CA(SA) BComHons External N/A 1 June 2011 Not
applicable 8
Mr F Docrat
MBA CISM CISA MAP CGEIT
External N/A 1 June 2011 Not applicable 8
Mr V Naicker
BCom Post Graduation Diploma in taxation
External N/A 1 June 2011 Not applicable 5
Ms H N Jaxa
MBA BCompt (Hons) Bcomm (Acc)
External N/A 1 June 2011 Not applicable 8
Ms T A Tsautse
LLM LLB BProc
External N/A 1 June 2011 Not applicable 8
2. Provincial Internal Audit Services (PIAS)
2.1 Objectives of PIAS
The PIAS provides a legislated function which covers an independent objective assurance and
consulting services on issues of internal controls, risk management and governance as provided in
the PFMA and International Standards for the Professional Practice of Internal Auditing (ISPPIA)
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
GOVERNANCE INFORMATION: 31 MARCH 2014
KZN Provincial Treasury Annual Report - 57 -
and in line with the principles in the King III Report on Corporate Governance and its scope,
comprehensively defined in chapter 3 of Treasury Regulations. These services are further
legislated through the Provincial Internal Audit Act, Act No. 2 of 2001.
The PIAS supports all provincial departments, some public entities and municipalities in areas of
internal audit, risk management, governance and forensic investigations. The component has
formulated a three-lines-of defence mechanism which entails:
• Providing assurance on the effectiveness of governance.
• Risk management.
• Compliance with systems and controls.
Based on the above, the PIAS also participates in the Audit Committee meetings of the
aforementioned institutions
The strategic objectives of the Unit are:
• To provide an efficient, effective and economical assurance services
• To build and maintain solid client relationships through providing value added services
• To enhance internal audit capacity within and outside the unit
• To promote good governance through assisting provincial departments, public entities and
municipalities with risk assessments and risk management capacity building exercises
• To promote a culture of zero tolerance for fraud and corruption in the province
2.2 Activities of PIAS conducted during the 2013/14 financial year
a) Assurance Services
The Assurance Services Unit conducted 257 audits on various processes within Provincial
Departments and Public Entities. These audits focused on high risk areas within each institution
and from which a number of control weaknesses were identified. The management teams of these
institutions were provided with recommendations designed to improve the identified deficiencies in
the business environment and thereby assist with improved audit outcomes. Areas that were
identified as transversal risk areas across the province were included in our audits together with
other legislated reviews and key service delivery initiatives. The audits covered various focus
areas such as Supply Chain Management, Asset Management, Human Resources Management,
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
GOVERNANCE INFORMATION: 31 MARCH 2014
KZN Provincial Treasury Annual Report - 58 -
Review of Financial Statements, Transfer Payments, Information Technology reviews and review
of Predetermined Objectives and Value for Money Audits.
• A strong focus area was Financial Audits where the Unit reviewed key financial controls at 8
Provincial Departments and 2 Public Entities. The Interim Financial Statements were reviewed
to provide management with some assurance on the financial statement preparation
processes. This was supplemented by a review of the Annual Financial Statements prior to
submission to the Auditor General.
• In addition to focusing on reviewing areas of control and financial management, the Unit
extended its offering to include much needed value adding services on operational process
design. The Unit commenced with a project to assist the Department of Health review the
effectiveness of its referral paths in hospitals and to provide input and guidance on the
development of a Referral System policy and procedure document.
• With the increased focus on value for money in the province, the Unit continued to enhance its
services on performance audits and commenced with various audits on the efficiency,
effectiveness and economical utilisation of resources. These included an audit on the One-
Home-One Garden programme, Infrastructure Projects in 4 departments; as well as auditing
Travel and Subsistence expenditure across all provincial departments. Some of these projects
will continue into the 2014/15 financial year.
• Information Technology provides the foundation to many processes and is a high risk area. The
unit continued to roll out various reviews on IT systems such as the Biometrics system and
PERSAL. Together with this, support and advice was also provided by reviewing IT Strategies
and providing management with assurance during the financial year on the progress made to
address AG findings in preparation for the statutory audit.
• In line with its role of promoting sound management practices, the Assurance Services
component participated in the Premiers Provincial Service Excellence Awards and performed
exceptionally well by winning the Silver Medal. This was the second time the component won a
category in these awards.
The graph below depicts the overall ratings of controls for the 2013/14 financial year across all
audits conducted:
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
GOVERNANCE INFORMATION: 31 MARCH 2014
KZN Provincial Treasury Annual Report - 59 -
• The activities and outcomes of the PIAS were complimented by the PARC together with the
Cluster Audit and Risk Committee (CARC) activities that monitored the work done by the PIAS
as well as interacting with Senior Departmental management on a regular basis to ensure that
there was improved accountability for issues raised.
As part of the future endeavours to continuously provide a value-added services to our clients will:
• Continue to provide internal audit services focusing on high risk areas identified by Accounting
Officers as well as transversal areas of concern emanating from the statutory audits by the
Auditor General.
• Audits on financial controls will continue to be a key focus area and the Unit will maintain
efforts to build capacity and up-skill auditors on these reviews.
• Services will be streamlined and the Unit will work closely with other support units within
Provincial Treasury such as Financial Reporting and the Supply Chain Management office to
ensure integrated support is provided.
• Internal Audit will also continue to work with those charged with governance such as Audit
Committees, the Auditor General and external oversight bodies to ensure proper monitoring
and reporting.
b) Risk and Advisory Services
This sub-programme is tasked with assisting provincial departments, public entities and
municipalities with internal audit capacity building, risk management services and forensic
investigations.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
GOVERNANCE INFORMATION: 31 MARCH 2014
KZN Provincial Treasury Annual Report - 60 -
The achievements of Risk and Advisory Services are as follows:
• As part of continued promoting of good governance the team embarked on ensuring that
department’s set-up internal risk committees, which was identified during the gap analysis
review. The role of the internal risk committees was to provide the department with oversight
and interventions into assuring that internal controls are strengthened and that emerging risks
are being addressed. The team conducted training to risk committee members and other
invited officials of all 15 departments during this financial year.
• The team has also been monitoring and reporting on progress made in the implementation of
agreed-upon risk mitigation plans. 60 risk follow-up reports have been tabled to the various
Cluster Audit and Risk Committees – i.e. the oversight structures that hold departments
accountable for, among other things, the implementation of agreed-upon risk mitigation plans.
• The team also supported 6 public entities and 46 municipalities, and municipal entities with
risk assessments including IT risk assessments during 2013/14.
• To date, all municipalities delegated to the province have existing risk profiles and registers
which are utilised amongst others to assist in developing risk based internal audit plans as well
as monitoring by management.
• With regard to Operation Clean Audit, the unit continued with the roll-out of the Municipalities’
Enterprise Risk Management Framework, and during the 2013/14 financial year, the unit
assessed 34 municipalities to test compliance with this framework.
• A performance evaluation of the internal audit units and audit committees was carried out to all
delegated municipalities to understand the challenges faced by municipalities and also to
develop intervention plans to address identified challenges. This is also in line with the spirit of
Operation Clean Audit.
• 6 municipalities have been assisted with specialised audits like IT audit of the general controls,
supply chain management and performance management audit. Furthermore, some
municipalities have been provided with support of supervising the internal audit units while
assisting them to appoint their own internal audit personnel.
• The team has successfully assisted the Ugu district to establish the internal audit forum for all
the internal audit personnel. The district has seven (7) municipalities including the district
municipality. The purpose of the forum is to share and impart knowledge amongst the internal
auditors of the district. These forums will be established in other districts across the province
as well.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
GOVERNANCE INFORMATION: 31 MARCH 2014
KZN Provincial Treasury Annual Report - 61 -
c) Forensic Investigation Services
The Forensic Investigation team was overwhelmed with the number of requests for investigations
from provincial departments, public entities and municipalities. The matters to be investigated
include fraud, corruption, financial mismanagement and mal-administration. The team works very
closely with the law enforcement agencies who conduct the criminal investigations. Efforts are
being made to ensure that investigated cases are brought to finality but, due to the challenges that
exist in the prosecution and judiciary services, the unit is largely unable to show the impact of
these investigations in the public arena to a desired level. However, the unit has embarked on a
process of interaction with the judiciary and prosecuting authority to work on the solutions that are
already showing positive results.
The achievements of Forensic Investigation are as follows:
• Since 2009, 211 requests with a total value of R3, 3 billion to be investigated were received.
• 113 of these investigations were finalised, while 98 are still in progress.
• 24 of the 113 completed investigations were finalised during 2013/14 at a cost of R34 million.
In a given financial year, on average, Treasury spends approximately R26 million to complete
the investigations that can be done using existing capacity, and in this regard the unit is
working on improving internal capacity, which will include the appointment of a General
Manager to head the forensic investigations unit.
• There have been improved relationships and co-operation with both the judiciary and
prosecution, with the highest executive leadership from these institutions, and the unit is
looking forward to improved outcomes following these interactions.
• The Office of the Premier’s Integrity Management unit is a key and critical stakeholder, in the
implementation of strategic measures to deter fraud and corruption in the province. Work done
by the forensic investigators is being utilised for the development of a strategy to combat fraud
and corruption.
• The team has also assisted all 15 departments with a review of their fraud prevention plans,
and the focus on this financial year was to monitor how departments were addressing
shortcomings that were identified as part of the review.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
GOVERNANCE INFORMATION: 31 MARCH 2014
KZN Provincial Treasury Annual Report - 62 -
C. 12 Report of the Audit Committee
1. Objective and responsibility of the Audit and Ri sk Committee
The Provincial Audit and Risk Committee (PARC) has been established to assist the KZN
Provincial Government in fulfilling its oversight responsibilities for the integrity of financial reporting
processes, system of internal control over financial reporting, audit process for monitoring
compliance with laws and regulations and KZN Provincial Government Code of conduct, fraud
prevention, the risk management process and any other good governance processes.
The Provincial Audit and Risk Committee reports that it has complied with its responsibilities
arising from the Public Finance Management Act, No.1 of 1999 (PFMA), Treasury Regulations 3.1,
including all other related prescripts. The Provincial Audit and Risk Committee also reports that it
adopted appropriate formal terms of reference as its Provincial Audit and Risk Committee Charter,
regulated its affairs in compliance with this charter and discharged all its responsibilities as
contained therein.
The Committee is therefore, pleased to present its report for the financial year ended 31 March
2014.
2. Audit Committee Members and Attendance
The KwaZulu-Natal Provincial Government has established the PARC as the shared audit
committee for its provincial departments. The PARC is further sub-divided into three Cluster Audit
and Risk Committees (CARCs) to provide oversight to provincial departments – i.e. with the
Provincial Treasury being served by the Economic CARC. The PARC and the Economic CARC
consists of the members listed below. As per its approved terms of reference, the Economic CARC
and PARC should meet at least 4 times per annum respectively. During the financial year under
review, four (4) PARC and four (4) Economic CARC meetings were held as outlined below.
# Name of Member
PARC
Meetings
Attended
Economic CARC
Meetings Attended
1. Ms T Tsautse
(Chairperson) 4 4
2. Ms M Mothipe 4 4
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
GOVERNANCE INFORMATION: 31 MARCH 2014
KZN Provincial Treasury Annual Report - 63 -
3. Mr V Naicker 2 N/A
4. Ms N Jaxa 4 N/A
5. Mr L Mangquku 4 4
6. Mr F Docrat 4 N/A
7. Mr T Boltman 4 N/A
- N/A = Not a member of the Economic CARC
- PARC meetings, include 2 special meetings.
3. The Effectiveness of Internal Control
The Committee has reviewed the reports of the Internal Auditors, the Audit report on the Annual
Financial Statements and Management Report of the Auditor General of South Africa (AGSA) and
has noted that the system of internal controls was adequate and effective.
However, the Committee has concerns around the human resources management issues relating
to filling of vacant posts within 12 months and officials acting in vacant positions for a period over
12 months. Furthermore, the department was urged to address Information Technology systems
weaknesses reported by the Auditor General and Internal Audit.
Risk Management
With regard to risk management, the Committee has noted that the department has not taken full
responsibility and ownership for compliance with section 38(1)(a)(i) of the PFMA, which requires
the Accounting Officer to ensure the maintenance of an effective system of internal control and risk
management. The department was still assisted by the Provincial Internal Audit Service (Risk and
Advisory Services) to fulfill its risk management responsibilities.
During the period under review, we have noted that the department updated its risk register, and
tabled the same during the 4th Quarter of the 2013/14 financial year Governance CARC meeting.
We also reviewed the quarterly progress reports on the implementation of risk mitigation during the
period under review.
In order to improve the general control environment in relation to risk management, the department
have been advised to:
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
GOVERNANCE INFORMATION: 31 MARCH 2014
KZN Provincial Treasury Annual Report - 64 -
• Ensure that completed risk mitigation plans are validated, measured and the risk register
regularly updated;
• Report on emerging risks, if any, on a quarterly basis;
• The Provincial Internal Audit Service capacitates the department and its Risk Management
Officer to enable them to execute the risk management activities on their own.
• Establish additional capacity in the department to ensure that each Programme has the risk
champion that will be responsible for undertaking the daily risk management responsibilities
and report to the Risk Management Officer.
Forensics Investigations
During the period under review, the Committee noted that there were four (4) forensic
investigations relating to SCM irregularities that the department has referred to the Provincial
Internal Audit Services for investigation. One (1) of these investigations was completed, and the
other three (3) were still in progress. The department and the Provincial Internal Audit Services
have been urged to promptly finalize the outstanding investigations, and work together to
implement recommendations on the finalized investigation.
Quality of in year management and monthly/quarterly reports
The Committee was satisfied with the content and quality of quarterly reports in respect of in year
management and quarterly performance reports submitted in terms of the PFMA and the Division
of Revenue Act prepared and issued by the Accounting Officer of the Department during the year
under view.
4. Evaluation of Financial Statements
The Committee has:
• Reviewed and discussed the audited Annual Financial Statements to be included in the Annual
Report, with the Auditor – General and the Accounting Officer;
• Reviewed the Auditor – General’s Management Report and Management’s response thereto;
• Reviewed the Department’s processes for compliance with legal and regulatory provisions and
no material findings were raised with regards to compliance with specific matters in key
applicable legislation.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
GOVERNANCE INFORMATION: 31 MARCH 2014
KZN Provincial Treasury Annual Report - 65 -
• Reviewed the information on predetermined objectives as reported in the annual report; and
the Committee notes that no material findings were raised with regards to usefulness and
reliability of performance information.
• Reviewed material adjustments resulting from the audit of the Department and has noted that
there were no material misstatements in the financial statements.
The Committee concurs and accepts the Auditor General’s opinion regarding the Annual Financial
Statements, and proposes that the Audited Annual Financial Statements be accepted and read
together with the report of the Auditor- General.
5. Internal Audit
In line with the PFMA and the King III Report on Corporate Governance requirements, Internal
Audit Function provides the Audit Committee and Management with reasonable assurance that the
internal controls are adequate and effective. This is achieved through the implementation of a risk
based Internal Audit plan. The Committee has, through the CARC monitoring processes,
considered internal audit reports issued after assessing the adequacy and effectiveness of controls
designed to mitigate the risks associated with operational and strategic activities of the
department, as well as the appropriateness of the of corrective actions provided by management to
improve the control environment.
The Internal Audit function was effective during the period under review and there were no
unjustified restrictions or limitations. The Committee will in the forthcoming year, monitor progress
to ensure that the Internal Audit Function continues to add value to the department and achieves
its optimal performance. The Committee also monitored the implementation of Internal Audit
recommendations to the Department.
6. Auditor-General’s Report
The Committee has throughout the financial year, constantly monitored the implementation of
corrective action plans to address the audit issues raised in the prior year by the Auditor General.
The Committee has met with the Auditor General of South Africa to ensure that there were no
unresolved issues that emanated from the current regulatory audit.
The Committee will ensure that corrective actions on the detailed findings emanating from the
current regulatory audit are monitored on a quarterly basis through the CARC processes.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
GOVERNANCE INFORMATION: 31 MARCH 2014
KZN Provincial Treasury Annual Report - 66 -
7. Appreciation
The Committee wishes to express its appreciation to the Management of the Department, the
Auditor General of South Africa, and the Provincial Internal Audit Services for the co-operation
and information they have provided to enable us to compile this report.
_________________________
Ms T Tsautse
Chairman: KZN Provincial Audit and Risk Committee
11 August 2014
KWAZULU NATAL PROVINCIAL TREASURY VOTE 6
REPORT OF THE ACCOUNTING OFFICER FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 67 -
Report by the Accounting Officer to the Executive A uthority and the KwaZulu-Natal Legislature. 1. GENERAL REVIEW OF THE STATE OF FINANCIAL AFFAIRS
Table below shows the revenue budget for Provincial Treasury Financial Year 2013/14,
and the preliminary revenue collected for the year.
Departmental receipts
2012/2013 2013/2014
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 Tax Receipts - - - - - -
Casino taxes - - - - - - Horse racing taxes - - - - - - Liquor licences - - - - - - Motor vehicle licences - - - - - -
Sale of goods and services other than capital assets
163
159
4
160
170
(10)
Transfers received - - - - - Fines, penalties and forfeits - - - 1 (1)
Interest, dividends and rent on land
250, 818
269, 818
(19, 000)
200,004
267, 882
(67 878)
Sale of capital assets 8 32 (24) - 434 (434) Financial transactions in assets and liabilities
494
437
57
340
371
(31)
Total
R251, 483
R 270, 446
(R 18, 963)
R 200, 504
R 268, 858
(R 68,354)
The department collected a revenue totalling R268.858 million in 2013/14 financial year,
exceeding the revenue budget by 34.5 per cent. The revenue collected in respect of the
following categories was higher than budgeted:
• Sale of goods and services other than capital asset s was over-collected by R10 000.
The over collection is mainly due to an increase in Services rendered: Commission on
insurance & garnishees and Gaming fees collected from various game reserves and lodges.
• Fines, penalties and forfeits collected R1 000 against a zero budget. This amount relates
to domestic fines charged for late return of books to the library by employees.
• Interest, dividends and rent on land was over-collected by R67.878 million. Most of the
revenue collected against this category is from interest earned on the Inter-Governmental
Cash Co-ordination (IGCC) and the Pay Master-General (PMG) accounts. The interest
earned by these accounts is mainly due to the positive cash balances and the favourable
interest. This balance is as a result of the implementation of cost-cutting measures and
stringent cash flow management by Provincial Departments.
KWAZULU NATAL PROVINCIAL TREASURY VOTE 6
REPORT OF THE ACCOUNTING OFFICER FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 68 -
• An amount of R434 000 was collected in respect of Sale of capital assets against no
budget. This was due to the unplanned auction of redundant motor vehicles.
• Transactions in financial assets and liabilities was over-collected by R31 000. Revenue
generated against this category is mainly attributed to recovery of debts from previous
financial years and therefore cannot be accurately estimated.
o Programme Expenditure
Programme Name
2013/2014 2012/2013
Final Appropriation
Actual Expenditur
e (Over)/ Under Expenditure
Final Appropriatio
n
Actual Expenditur
e (Over)/Under Expenditure
R’000 R’000 R’000 R’000 R’000 R’000 Administration
113,064
96, 933
16, 131
109, 137
97, 905
11, 232
Fiscal Resource Management
102, 395
91, 203
11, 192
95, 008
76, 870
18, 138
Financial Management
269, 086
240, 986
28, 100
231, 379
212, 094
19, 285
Internal Audit
109, 581
107, 363
2, 218
106, 566
93, 154
13, 412
Growth and Development
59, 845
41, 055
18, 790
71, 145
38, 317
32, 828
TOTAL
R 653, 971
R 577, 541
R76, 431
R 613, 235
R 518, 340
R 94, 895
The department had an appropriated budget of R653, 971 million for the 2013/14 financial year
and (2012/13: R613, 235 million). The expenditure totalled R577, 541 million at year-end and
(2012/13: R518, 340 million). The department only spent 88.3 per cent resulting in an under-
spent of R76.429 million of the 2013/14 Final Appropriation. See details below:
• Compensation of employees was under-spent by 8%, due to delays in the filling of vacant
funded posts resulting from delays in approval of the new structure by the DPSA, high staff
turnover and, difficulty in finding suitably qualified candidates.
• Goods and services reflects under-expenditure of R34 613 million (9%) due to the following:
o Lower than anticipated audit costs,
o Under-expenditure on Operation Sukuma Sakhe, as funding was received late in the
financial year and thus could not be fully spent.
o Unsatisfactory work done by service providers within the MSP, which led to payments
being withheld for orders already issued.
KWAZULU NATAL PROVINCIAL TREASURY VOTE 6
REPORT OF THE ACCOUNTING OFFICER FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 69 -
o Delays in the appointment of a service provider for the e-Procurement Tool due to an
appeal.
o Delays in discussions with stakeholders in respect of the take-over of McCord Hospital.
o Delays in obtaining dates for GRAP training with municipalities, and
o The late receipt of invoices from service providers dealing with the Health Asset Register
and the Education capped-leave projects. Both projects will be completed during the
course of 2014/15.
• With regard to Transfers and subsidies:
o Provinces and municipalities reflects substantial under-spending of R18.383 million
resulting from delays in spending in respect of the light industrial park at Bhongweni
(under-spent by R5.321 million) and the Shayamoya eco-complex (R13.062 million
under-spent).
o Households were under-spent at year-end by R2.153 million mainly due to a delay in the
selection process regarding students for the Thuthuka Bursary Fund (R1.472 million).
The remaining amount of R681 000 is due to higher anticipated staff exits.
The following post Adjustments Estimate Virements were made between programmes:
A total amount of R162 000 was moved from Programme 3 : Financial Management
within economic classification Transfers and Subsidies to: Households to various
programmes as follows:
• Programme 1: Administration (R83 000) to sub-programmes Head of
Department an amount of R9 000 and R3 000 to Chief Financial Office and R71
000 to Human Resources Management.
• Programme 2: Fiscal Resources (R54 000) to sub-programmes: Economic
Analysis an amount of R2 000 and R52 000 to Municipal Finance.
• Programme 4 : Internal Audit (R25 000) to sub-programme: Risk Management
an amount of R23 000 and R2 000 to Assurance Services
Various post Adjustments Estimates were made between economic classifications within
the various programmes. All Virements were approved by the Accounting Officer of the
department in terms of Section 43(1) of the Public Finance Management Act.
KWAZULU NATAL PROVINCIAL TREASURY VOTE 6
REPORT OF THE ACCOUNTING OFFICER FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 70 -
Rollovers 2013/14
o The department has requested a roll-over of R6.100 million in respect of its Goods and
services budget, and
o A special roll-over of R18.383 million in respect of its Transfers and subsidies to:
provinces and municipalities budget.
Fruitless, Wasteful or Irregular Expenditure
• There was no fruitless, wasteful or irregular expenditure not condoned during 2013/14
financial year.
Future plans of the department
• The department will be crafting its new five year strategic plan in line with the new
administration of government, however the Treasury mandate remains unchanged.
Public Private Partnerships
• The department has no PPP project reported in past financial years and there is no current
project.
Discontinued activities / activities to be disconti nued
• The department did not have any discontinued activities for the year ended.
New or proposed activities
• There are no newly proposed activities by the department.
Supply chain management
Tender No Description Status
1173/2012-F Hardware Refresh Finalised 2013/2014
1175/2012-F BBBEE Verification Finalised 2013/2014
1176/2012-F Panel of SCM Expect Finalised 2013/2014
1177/2012-F E-Procurement Tool Finalised 2013/2014
1178/2012-F Travel Agency Finalised 2013/2014
1179/2012-F Travel Agency (online) Finalised 2013/2014
KWAZULU NATAL PROVINCIAL TREASURY VOTE 6
REPORT OF THE ACCOUNTING OFFICER FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 71 -
1180/2013-F Air Shows Finalised 2013/2014
1182/2013-F King Shaka Precinct- Feasibility study Finalised 2013/2014
1183/2013-F Contract Management Finalised 2013/2014
1184/2013-F Banking Services for KZN Provincial Government
Finalised 2013/2014
1185/2013-F Business Process Mapping (BPM) Finalised 2013/2014
1188/2013-F Cleaning Services for KZN Provincial Treasury Finalised 2013/2014
Prevention of Irregular expenditure and SCM challen ges
• The department has policies and practice notes that should be followed in executing SCM
functions to avoid irregular expenditure. There were no serious challenges encountered in
the SCM area that threatened the smooth functioning of the unit. However the bid appeals
by aggrieved bidders has been increasing and this may delay service delivery and budget
spending.
Gifts and Donations from non-related parties
• Donations Received (,000 )
ABSA Bank Sponsorship for the 2013: Women's Business Breakfast 13
FNB Sponsorship for the 2014: Budget Road Show 80
Total 93
• Donations made in Cash (,000)
Umgeni Municipality Cash Mar-14 35
Mpofana Municipality Cash Mar-14 35
Umshwathi Municipality Cash Mar-14 35
Impendle Municipality Cash Mar-14 35
Mkhambathini Municipality Cash Mar-14 35
Total 175
• Donations made in Kind (,000)
Duze Primary School Uniforms (PT056182); (PT056073) 66
Ottawa Primary School 50 pairs: School Shoes (PT056877) 8
Amaoti No3 Combine School 50 pairs: School Shoes (PT056877) 8
Bavumile Junior Primary School 50 pairs: School Shoes (PT056877) 8
KWAZULU NATAL PROVINCIAL TREASURY VOTE 6
REPORT OF THE ACCOUNTING OFFICER FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 72 -
Bhekulwandle P School 50 pairs: School Shoes (PT056877) 8
Wozamoya High School 50 pairs: School Shoes (PT056877) 8
18 Schools in Ndwedwe Circuit 25 pairs: School Shoes (PT056217) 2
12 Schools in Maphumulo Circuit 25 pairs: School Shoes (PT056217) 2
8 Schools in Mandeni Circuit 25 pairs: School Shoes (PT056217) 2
6 Schools in Mhlali Circuit 25 pairs: School Shoes (PT056217) 2
uMgungundlovu District 24 Soccer Kits (PT057002) 37
48 Schools in uMgungundlovu
District
Uniforms (Sundry 1304561; Dis 603700; Dis 603637;
dis603595; dis603639)
443
51 Schools in iLembe District School Uniforms (PT056463) 37
(Bongudunga High School) Netball Kit; 24 pairs of tekkies and socks Dis603558 10
5 Schools in Richmond District Net Ball Kit (Dis 603698) 53
4 Schools in Underberg School Uniforms (Dis 603638) 16
Total 710
Exemptions and deviations received from the Nationa l Treasury
There were no exemptions received by the department during the year 2013/14.
Events after the reporting date
There were no subsequent events occurred after reporting date.
Acknowledgement/s or Appreciation
I would like to express my special thanks to MEC for Finance for her support, Treasury
management and staff for their hard work during the year.
Conclusion
This report presents the annual financial statements and performance information report for the
financial year 2013/14.
Mr H.A.W. Conradie Acting Accounting Officer 31 May 2014
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 REPORT OF THE AUDITOR-GENERAL FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 73 -
REPORT OF THE AUDITOR-GENERAL TO KWAZULU-NATAL PROV INCIAL LEGISLATURE
ON VOTE NO. 6: KWAZULU-NATAL PROVINCIAL TREASURY
REPORT ON THE FINANCIAL STATEMENTS
Introduction
1. I have audited the financial statements of the KwaZulu-Natal Provincial Treasury set out on
pages 134 to 197 which comprise the appropriation statement, the statement of financial
position as at 31 March 2014, the statement of financial performance, statement of changes
in net assets and cash flow statement for the year then ended, as well as the notes,
comprising a summary of significant accounting policies and other explanatory information.
Accounting officer’s responsibility for the financi al statements
2. The accounting officer is responsible for the preparation and fair presentation of the
financial statements in accordance with the Modified Cash Standard as prescribed by
National Treasury and the requirements of the Public Finance Management Act of South
Africa, 1999 (Act No. 1 of 1999)(PFMA) and Division of Revenue Act of South Africa, 2013
(Act No. 2 of 2013)(DoRA), and for such internal control as the accounting officer
determines is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor-general’s responsibility
3. My responsibility is to express an opinion on the financial statements based on my audit. I
conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No.
25 of 2004)(PAA), the general notice issued in terms thereof and International Standards on
Auditing. Those standards require that I comply with ethical requirements, and plan and
perform the audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the department’s preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 REPORT OF THE AUDITOR-GENERAL FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 74 -
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a
basis for my audit opinion.
Opinion
6. In my opinion, the financial statements present fairly, in all material respects, the financial
position of the KwaZulu-Natal Provincial Treasury as at 31 March 2014 and its financial
performance and cash flows for the year then ended, in accordance with the Modified Cash
Standards prescribed by National Treasury and the requirements of the PFMA and DoRA.
Emphasis of matter
7. I draw attention to the matter below. My opinion is not modified in respect of this matter.
Material under-spending of the budget
8. As disclosed in the appropriation statement, the department has materially under-spent the
budget on administration, fiscal resource financial management and growth and
development programmes to the amount of R74,21million. The under-spending is mainly
due to the delays in filling of budgeted vacant positions. This has resulted in a delay in the
completion of some of the planned projects.
Additional matter
9. I draw attention to the matter below. My opinion is not modified in respect of these matters.
Unaudited supplementary schedules
10. The supplementary information set out on pages 188 to 197 do not form part of the financial
statements and is presented as additional information. I have not audited these schedules
and, accordingly, I do not express an opinion thereon.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 REPORT OF THE AUDITOR-GENERAL FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 75 -
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
11. In accordance with the PAA and the general notice issued in terms thereof, I report the
following findings on the reported performance information against predetermined objectives
for selected programmes presented in the annual performance report, non-compliance with
legislation as well as internal control. The objective of my tests was to identify reportable
findings as described under each subheading but not to gather evidence to express
assurance on these matters. Accordingly, I do not express an opinion or conclusion on
these matters.
Predetermined objectives
12. I performed procedures to obtain evidence about the usefulness and reliability of the
reported performance information for the following selected programmes presented in the
annual performance report of the department for the year ended 31 March 2014:
• Programme 2: fiscal resource management on pages 22 to 31
• Programme 3: financial management: on pages 32 to 43
• Programme 4: internal audit on pages 44 to 49
• Programme 5: growth and development on page 50
13. I evaluated the reported performance information against the overall criteria of usefulness
and reliability.
14. I evaluated the usefulness of the reported performance information to determine whether it
was presented in accordance with the National Treasury’s annual reporting principles and
whether the reported performance was consistent with the planned programmes. I further
performed tests to determine whether indicators and targets were well defined, verifiable,
specific, measurable, time bound and relevant, as required by the National Treasury’s
Framework for managing programme performance information (FMPPI).
15. I assessed the reliability of the reported performance information to determine whether it
was valid, accurate and complete.
16. I did not raise any material findings on the usefulness and reliability of the reported
performance information for the selected programmes.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 REPORT OF THE AUDITOR-GENERAL FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 76 -
Compliance with legislation
17. I performed procedures to obtain evidence that the department had complied with
applicable legislation regarding financial matters, financial management and other related
matters. I did not identify any instances of material non-compliance with specific matters in
key legislation, as set out in the general notice issued in terms of the PAA.
Internal control
18. I considered internal control relevant to my audit of the financial statements, annual
performance report and compliance with legislation. I did not identify any significant
deficiencies.
OTHER REPORTS
Investigations
19. The following investigations are currently being carried at KZN Provincial Treasury by the
provincial internal audit unit:
• alleged fraud and corruption in subsistence and travel claims;
• alleged noncompliance with the applicable legislation on appointment of a service
provider to the municipal infrastructure CRACK team;
• suspected undisclosed conflict of interest, and
• investigation into alleged misrepresentation on SBD 4 by officials within the department.
20. One investigation relates to the 2012/13 financial year and three relate to the 2013/14
financial year.
Pietermaritzburg
31 July 2014
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 77 -
HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 1.1 - Personnel costs by Programme
Programme Total Voted Expenditure
(R'000)
Compensation of
Employees Expenditure
(R'000)
Training Expenditure
(R'000)
Professional and
Special Services (R'000)
Compensation of Employees as
percent of Total Expenditure
Average Compensa
tion of Employees Cost per
Employee (R'000)
Employm-ent
Administration 94 282 52 287 0 0 55.5 115 342 Financial management 240 495 49 791 0 0 20.7 110 342 Fiscal resource management
91 137 37 104 0 0 40.7 82 342
Growth & development 41 055 0 0 0 0 0 342 Internal audit 107 242 49 450 0 0 46.1 109 342 Total as on Financial Systems (BAS)
577 517 188 632 0 0 32.7 416 342
TABLE 1.2 - Personnel costs by Salary band
Salary Bands
Compensation of Employees Cost
including Transfers (R'000)
Percentage of Total
Personnel Cost for Department
Average Compensation
Cost per Employee (R)
Total Personnel Cost for Dept
including Goods and Services
(R'000)
Number of Employees
Skilled (Levels 3-5) 6 307 3.2 114 673 197 909 55 Highly skilled production (Levels 6-8)
26 249 13.3 340 896 197 909 77
Highly skilled supervision (Levels 9-12)
85 063 43 521 859 197 909 163
Senior management (Levels 13-16)
46 469 23.5 988 702 197 909 47
Contract (Levels 1-2) 2 489 1.3 62 225 197 909 40 Contract (Levels 3-5) 8 175 4.1 95 058 197 909 86
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 78 -
Contract (Levels 6-8) 1 330 0.7 266 000 197 909 5 Contract (Levels 9-12) 4 254 2.1 425 400 197 909 10 Contract (Levels 13-16) 6 202 3.1 886 000 197 909 7 Periodical Remuneration 4 436 2.2 92 417 197 909 48 TOTAL 190 974 96.5 354 970 197 909 538 TABLE 1.3 - Salaries, Overtime, Home Owners Allowance and Medical Aid by Programme
Programme Salaries (R'000)
Salaries as % of Personnel
Cost
Overtime (R'000)
Overtime as % of Personnel
Cost
HOA (R'000)
HOA as % of
Personnel Cost
Medical Ass. (R'000)
Medical Ass. as % of Personnel
Cost
Total Personnel Cost per
Programme (R'000)
Prog 2: Fiscal resource management
30421 80.1 0 0 1182 3.1 611 1.6 37991
Prog 1: administration 38333 73.5 457 0.9 1191 2.3 1563 3 52146 Prog 1: administration* 2656 73.6 3 0.1 114 3.2 126 3.5 3607 Prog 3: financial management
37585 73.4 367 0.7 1090 2.1 1077 2.1 51192
Prog 4: internal audit 39034 73.7 0 0 1317 2.5 1129 2.1 52974 TOTAL 148 029 74.8 827 0.4 4 894 2.5 4506 2.3 197 910 TABLE 1.4 - Salaries, Overtime, Home Owners Allowance and Medical Aid by Salary Band
Salary bands Salaries (R'000)
Salaries as % of Personnel
Cost
Overtime (R'000)
Overtime as % of Personnel
Cost
HOA (R'000)
HOA as % of
Personnel Cost
Medical Ass. (R'000)
Medical Ass. as % of Personnel
Cost
Total Personnel Cost per
Salary Band (R'000)
Skilled (Levels 3-5) 4383 69.5 8 0.1 380 6 548 8.7 6311 Highly skilled production (Levels 6-8)
18702 70.8 423 1.6 895 3.4 1487 5.6 26422
Highly skilled supervision (Levels 9-12)
64908 73.8 255 0.3 2186 2.5 2089 2.4 87916
Senior management (Levels 13-16)
38237 77.3 0 0 1422 2.9 384 0.8 49444
Contract (Levels 1-2) 2479 99.4 10 0.4 0 0 0 0 2493
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 79 -
Contract (Levels 3-5) 7909 94.8 35 0.4 0 0 0 0 8342 Contract (Levels 6-8) 1263 94.7 14 1 11 0.8 0 0 1334 Contract (Levels 9-12) 4062 92.7 83 1.9 0 0 0 0 4384 Contract (Levels 13-16) 6087 93.1 0 0 0 0 0 0 6538 Periodical Remuneration
0 0 0 0 0 0 0 0 4724
TOTAL 148 030 74.8 828 0.4 4 894 2.5 4 508 2.3 197 908
HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance
TABLE 2.1 - Employment and Vacancies by Programme at end of period
Programme Number of
Posts Number of Posts
Filled Vacancy Rate Number of Posts
Filled Additional to the Establishment
Prog 1: Administration, Permanent 122 107 12.3 48 Prog 1: Administration*, Permanent 12 8 33.3 0 Prog 2: Fiscal resource management, Permanent 72 61 15.3 11 Prog 3: Financial management, Permanent 106 84 20.8 35 Prog 4: Internal audit, Permanent 98 82 16.3 54 TOTAL 410 342 16.6 148 TABLE 2.2 - Employment and Vacancies by Salary Band at end of period
Salary Band Number of
Posts Number of Posts
Filled Vacancy Rate Number of Posts
Filled Additional to the Establishment
Lower skilled (Levels 1-2), Permanent 0 0 0 0 Skilled (Levels 3-5), Permanent 64 55 14.1 0 Highly skilled production (Levels 6-8), Permanent 95 77 18.9 0 Highly skilled supervision (Levels 9-12), Permanent 196 163 16.8 0 Senior management (Levels 13-16), Permanent 55 47 14.5 0 Contract (Levels 1-2), Permanent 40 40 0 40 Contract (Levels 3-5), Permanent 92 86 6.5 86 Contract (Levels 6-8), Permanent 7 5 28.6 5 Contract (Levels 9-12), Permanent 10 10 0 10
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 80 -
Contract (Levels 13-16), Permanent 10 7 30 7 TOTAL 569 490 13.9 148 TABLE 2.3 - Employment and Vacancies by Critical Occupation at end of period
Critical Occupations Number of
Posts Number of Posts
Filled Vacancy Rate Number of Posts
Filled Additional to the Establishment
Administrative related, Permanent 46 39 15.2 3 Bus and heavy vehicle drivers, Permanent 6 6 0 0 Client inform clerks(switchboard reception inform clerks), Permanent 2 2 0 0 Communication and information related, Permanent 4 4 0 0 Economist 1 1 0 0 Finance and economics related, Permanent 38 33 13.2 1 Financial and related professionals, Permanent 55 44 20 3 Financial clerks and credit controllers, Permanent 19 16 15.8 52 General legal administration & rel. professionals, Permanent 1 0 100 0 Head of department/chief executive officer, Permanent 1 1 0 1 Human resources &organisat develop & relate prof, Permanent 22 16 27.3 0 Human resources clerks, Permanent 21 17 19 0 Human resources related, Permanent 7 5 28.6 0 Information technology related, Permanent 2 2 0 0 Library mail and related clerks, Permanent 6 6 0 0 Material-recording and transport clerks, Permanent 4 3 25 0 Messengers porters and deliverers, Permanent 3 3 0 0 Other administrative& related clerks and organisers, Permanent 29 28 3.4 80 Other administrative policy and related officers, Permanent 50 41 18 0 Other information technology personnel., Permanent 9 6 33.3 0 Other occupations, Permanent 0 0 0 0 Risk management and security services, Permanent 0 0 0 0 Secretaries & other keyboard operating clerks, Permanent 31 23 25.8 2 Senior managers, Permanent 53 46 13.2 6 TOTAL 410 342 16.6 148
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 81 -
TABLE 2.4 - Signing of performance Agreements by SMS Members as at 30 September 2013
SMS LEVEL
Total Number of
Funded SMS Posts Per Level
Total Number of SMS Members
per Level
Total Number of Signed
Performance Agreements per
Level
Signed performance agreements as % of
total number of SMS members per level
Director-General/Head of Department 1 1 1 0 Salary Level 16, but not HOD 0 0 0 0 Salary Level 15 3 2 2 100 Salary Level 14 11 9 9 100 Salary Level 13 40 37 37 100 TOTAL 55 49 49 100 TABLE 2.5 - SMS Post Information as at 31 March 2014 SMS LEVEL Total No of Funded
SMS Posts Per Level
Total Number of SMS Posts filled per
Level
%age of SMS posts filled per
level
Total number of SMS posts vacant per
level
%age of SMS posts vacant per
level
Director-General/Head of Department 1 1 100 0 0 Salary Level 16, but not HOD 0 0 0 0 0 Salary Level 15 3 1 33.33 2 66.66 Salary Level 14 11 11 72.72 0 27.27 Salary Level 13 40 34 85.71 6 14.28 TOTAL 55 47 80 8 20 TABLE 2.6 - Advertising and filling of SMS posts as at 31 March 2014 SMS LEVEL ADVERTISING FILLING OF POSTS
No of vacancies per level
advertised in 6 months of becoming
vacant
Number of vacancies per level filled in 6
months of becoming
vacant
Number of vacancies per level not filled in 6 months of
becoming vacant but in 12
months
Director-General/Head of Department 0 0 0
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 82 -
Salary Level 16, but not HOD 0 0 0 Salary Level 15 2 0 0 Salary Level 14 0 0 0 Salary Level 13 3 0 0 TOTAL 5 0 0 HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 3.1 - Job Evaluation
Salary Band Number of Posts Number of Jobs
Evaluated % of Posts Evaluated
Number of Posts Upgraded
% of Upgraded
Posts Evaluated
Number of Posts
Downgraded
% of Downgraded
Posts Evaluated
Lower skilled (Levels 1-2) 0 0 0 0 0 0 0 Contract (Levels 1-2) 0 0 0 0 0 0 0 Contract (Levels 3-5) 0 0 0 0 0 0 0 Contract (Levels 6-8) 0 0 0 0 0 0 0 Contract (Levels 9-12) 0 0 0 0 0 0 0 Contract (Band A) 0 0 0 0 0 0 0 Skilled (Levels 3-5) 64 0 0 1 0 0 0 Highly skilled production (Levels 6-8)
95 0 0 0 0 0 0
Highly skilled supervision (Levels 9-12)
196 0 0 0 0 0 0
Senior Management Service Band A
40 0 0 0 0 0 0
Senior Management Service Band B
11 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
TOTAL 410 0 0 1 0 0 0
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 83 -
TABLE 3.2 - Profile of employees whose positions were upgraded due to their posts being upgraded Beneficiaries African Asian Coloured White Total Female 1 0 0 0 1 Male 0 0 0 0 0 Total 1 0 0 0 1 Employees with a Disability 0 0 0 0 0 TABLE 3.3 - Employees whose salary level exceed the grade determined by Job Evaluation [i.t.o PSR 1.V.C.3]
Occupation Number of Employees
Job Evaluation Level
Remuneration Level
Reason for Deviation
No of Employees in Dept
xxx 0 0 0 0 0 xxx 0 0 0 0 0 Total 0 0 0 0 0 Percentage of Total Employment 0 0 0 0 0 TABLE 3.4 - Profile of employees whose salary level exceeded the grade determined by job evaluation [i.t.o. PSR 1.V.C.3] Beneficiaries African Asian Coloured White Total Female 0 0 0 0 0 Male 0 0 0 0 0 Total 0 0 0 0 0 Employees with a Disability 0 0 0 0 0 HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 4.1 - Annual Turnover Rates by Salary Band
Salary Band Employment at Beginning of Period (April 2013)
Appointments Terminations Turnover Rate
Skilled (Levels 3-5), Permanent 57 4 6 10.5 Highly skilled production (Levels 6-8), Permanent 99 5 12 12.1 Highly skilled supervision (Levels 9-12), Permanent
196 11 18 9.2
Senior Management Service Band A, Permanent 40 1 2 5 Senior Management Service Band B, Permanent 11 0 1 9.1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 84 -
Senior Management Service Band C, Permanent 3 0 0 0 Senior Management Service Band D, Permanent 1 0 0 0 Contract (Levels 1-2), Permanent 31 0 0 0 Contract (Levels 3-5), Permanent 66 0 0 0 Contract (Levels 6-8), Permanent 5 0 0 0 Contract (Levels 9-12), Permanent 9 0 0 0 Contract (Band A), Permanent 6 0 0 0 Contract (Band D), Permanent 1 0 0 0 TOTAL 525 21 39 7.4 TABLE 4.2 - Annual Turnover Rates by Critical Occupation
Occupation Employment at Beginning of Period (April 2013) Appointments Terminations Turnover Rate
Administrative related, Permanent 46 2 1 2.2 Bus and heavy vehicle drivers, Permanent 6 0 0 0 Client inform clerks(switchbrecept inform clerks), Permanent
2 0 0 0
Communication and information related, Permanent
4 0 0 0
Finance and economics related, Permanent 38 3 3 7.9 Financial and related professionals, Permanent 55 6 7 12.7 Financial clerks and credit controllers, Permanent 18 0 1 5.6 Head of department/chief executive officer, Permanent
1 0 0 0
Human resources &organisatdevelopm& relate prof, Permanent
22 1 3 13.6
Human resources clerks, Permanent 21 2 2 9.5 Human resources related, Permanent 7 2 0 0 Information technology related, Permanent 2 0 0 0 Library mail and related clerks, Permanent 6 0 0 0 Material-recording and transport clerks, Permanent 4 0 1 25 Messengers porters and deliverers, Permanent 3 0 0 0 Other administrat& related clerks and organisers, Permanent
29 1 3 10.3
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 85 -
Other administrative policy and related officers, Permanent
50 2 8 16
Other information technology personnel., Permanent
9 0 1 11.1
Other occupations, Permanent 2 0 0 0 Risk management and security services, Permanent 0 0 0 0 Secretaries & other keyboard operating clerks, Permanent
29 2 6 20.7
Senior managers, Permanent 53 0 3 5.7 TOTAL 407 21 39 9.6
TABLE 4.3 - Reasons why staff are leaving the department
Termination Type Number Percentage of
Total Resignations
Percentage of Total Employment
Total Total Employment
Death, Permanent 2 2 0.6 99 342 Resignation, Permanent 14 14.1 4.1 99 342 Transfers out of the Department 21
Expiry of contract, Permanent 0 0 0 99 342 Dismissal-misconduct, Permanent 2 2 0.6 99 342 Retirement, Permanent 0 0 0 99 342 TOTAL 39 39.4 11.4 99 342 Resignations as % of Employment
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 86 -
TABLE 4.4 - Granting of Employee Initiated Severance Packages
Category No of applications received
No of applications
referred to the MPSA
No of applications supported by
MPSA
No of Packages approved
by department
Lower Skilled (Salary Level 1-2) 0 0 0 0 Skilled (Salary Level 3-5) 0 0 0 0 Highly Skilled Production (Salary Level 6-8) 0 0 0 0 Highly Skilled Production (Salary Level 9-12) 0 0 0 0 Senior Management (Salary Level 13 and higher) 0 0 0 0 Total 0 0 0 0 TABLE 4.5 - Promotions by Critical Occupation
Occupation Employment at Beginning of Period (April 2013)
Promotions to another Salary
Level
Salary Level Promotions as a %
of Employment
Progressions to another
Notch within Salary Level
Notch progressions
as a % of Employment
Administrative related 46 1 2.2 28 60.9 Bus and heavy vehicle drivers 6 0 0 2 33.3 Client inform clerks(switchbrecept inform clerks) 2 0 0 1 50 Communication and information related 4 0 0 3 75 Finance and economics related 38 0 0 15 39.5 Financial and related professionals 55 1 1.8 38 69.1 Financial clerks and credit controllers 18 2 11.1 10 55.6 Head of department/chief executive officer 1 0 0 0 0 Human resources &organisatdevelopm& relate prof
22 0 0 16 72.7
Human resources clerks 21 0 0 11 52.4 Human resources related 7 0 0 2 28.6 Information technology related 2 0 0 1 50 Library mail and related clerks 6 0 0 4 66.7 Material-recording and transport clerks 4 0 0 2 50 Messengers porters and deliverers 3 0 0 3 100 Other administrat& related clerks and organisers 29 2 6.9 14 48.3
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 87 -
Other administrative policy and related officers 50 0 0 37 74 Other information technology personnel. 9 0 0 5 55.6 Other occupations 2 0 0 0 0 Risk management and security services 0 0 0 1 0 Secretaries & other keyboard operating clerks 29 1 3.4 20 69 Senior managers 53 3 5.7 61 115.1 TOTAL 407 10 2.5 274 67.3
TABLE 4.6 - Promotions by Salary Band
Salary Band Employment at Beginning of
Period (April 2013)
Promotions to another Salary
Level
Salary Level Promotions as a % of
Employment
Progressions to another Notch within Salary
Level
Notch progressions
as a % of Employment
Skilled (Levels 3-5), Permanent 57 0 0 20 35.1 Highly skilled production (Levels 6-8), Permanent 99 5 5.1 70 70.7 Highly skilled supervision (Levels 9-12), Permanent
196 2 1 119 60.7
Senior management (Levels 13-16), Permanent 55 3 5.5 60 109.1 Contract (Levels 1-2), Permanent 0 0 0 0 0 Contract (Levels 3-5), Permanent 0 0 0 1 0 Contract (Levels 6-8), Permanent 0 0 0 0 0 Contract (Levels 9-12), Permanent 0 0 0 0 0 Contract (Levels 13-16), Permanent 0 0 0 4 0 TOTAL 407 10 2.5 274 67.3 HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 5.1 - Total number of Employees (incl. Employees with disabilities) per Occupational Category (SASCO) Occupational Categories
Male, African
Male, Coloured
Male, Indian
Male, Total Blacks
Male, White
Female, African
Female, Coloured
Female, Indian
Female, Total
Blacks
Female, White
Total
Legislators, senior officials and managers, Permanent
16 2 5 23 2 8 0 7 15 3 43
Professionals, Permanent 44 0 5 49 5 39 1 4 44 8 106 Technicians and associate professionals, Permanent
38 0 3 41 0 33 1 5 39 2 82
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 88 -
Clerks, Permanent 34 1 0 35 0 44 1 9 54 12 101 Service and sales workers, Permanent 1 0 0 1 0 0 0 0 0 0 1 Plant and machine operators and assemblers, Permanent
4 0 0 4 1 1 0 0 1 0 6
Elementary occupations, Permanent 0 0 0 0 0 0 0 0 0 0 0 Other, Permanent (Lab &Rel Workers) 3 0 0 3 0 0 0 0 0 0 3 TOTAL 140 3 13 156 8 125 3 25 153 25 342
Male, African
Male, Coloured
Male, Indian
Male, Total Blacks
Male, White
Female, African
Female, Coloured
Female, Indian
Female, Total
Blacks
Female, White
Total
Employees with disabilities 3 0 1 4 0 0 0 0 0 1 5
TABLE 5.2 - Total number of Employees (incl. Employees with disabilities) per Occupational Bands Occupational Bands
Male, African
Male, Coloured
Male, Indian
Male, Total Blacks
Male, White
Female, African
Female, Coloured
Female, Indian
Female, Total
Blacks
Female, White
Total
Top Management, Permanent 1 0 2 3 0 1 0 0 1 0 4 Senior Management, Permanent 17 2 4 23 2 7 1 7 15 3 43 Professionally qualified and experienced specialists and mid-management, Permanent
60 0 5 65 5 41 0 8 49 6 125
Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent
46 0 2 48 1 54 2 8 64 16 129
Semi-skilled and discretionary decision making, Permanent
16 1 0 17 0 22 0 2 24 0 41
Unskilled and defined decision making, Permanent
0 0 0 0 0 0 0 0 0 0 0
Contract (Senior Management), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Professionally qualified), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Skilled technical), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Semi-skilled), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Unskilled), Permanent 0 0 0 0 0 0 0 0 0 0 0 TOTAL 140 3 13 156 8 125 3 25 153 25 342
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 89 -
TABLE 5.3 - Recruitment Occupational Bands
Male, African
Male, Coloured
Male, Indian
Male, Total Blacks
Male, White
Female, African
Female, Coloured
Female, Indian
Female, Total
Blacks
Female, White
Total
Top Management/SMS, Permanent 0 0 0 0 0 0 1 0 1 0 1 Professionally qualified and experienced specialists and mid-management, Permanent
3 0 0 3 0 4 0 1 5 0 8
Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent
4 0 0 4 0 8 0 0 8 0 12
Semi-skilled and discretionary decision making, Permanent
0 0 0 0 0 0 0 0 0 0 0
Contract (Senior Management), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Professionally qualified), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Skilled technical), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Semi-skilled), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Unskilled), Permanent 0 0 0 0 0 0 0 0 0 0 0 TOTAL 7 0 0 7 0 12 1 1 14 0 21
Male, African
Male, Coloured
Male, Indian
Male, Total Blacks
Male, White
Female, African
Female, Coloured
Female, Indian
Female, Total
Blacks
Female, White
Total
Employees with disabilities 0 0 0 0 0 0 0 0 0 0 0
TABLE 5.4 - Promotions Occupational Bands
Male, African
Male, Coloured
Male, Indian
Male, Total Blacks
Male, White
Female, African
Female, Coloured
Female, Indian
Female, Total
Blacks
Female, White
Total
Top Management/SMS, Permanent 1 0 0 1 0 1 0 0 1 1 3 Senior Management, Permanent 0 0 0 0 0 0 0 0 0 0 0 Professionally qualified and experienced specialists and mid-management, Permanent
0 0 0 0 0 1 0 0 1 0 1
Skilled technical and academically qualified workers, junior management, supervisors,
2 0 0 2 0 3 0 0 3 1 6
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 90 -
foremen, Permanent Semi-skilled and discretionary decision making, Permanent
0 0 0 0 0 0 0 0 0 0 0
Contract (Senior Management), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Professionally qualified), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Semi-skilled), Permanent 0 0 0 0 0 0 0 0 0 0 0 TOTAL 3 0 0 3 0 5 0 0 5 2 10
Male, African
Male, Coloured
Male, Indian
Male, Total Blacks
Male, White
Female, African
Female, Coloured
Female, Indian
Female, Total
Blacks
Female, White
Total
Employees with disabilities 0 0 0 0 0 0 0 0 0 0 0
TABLE 5.5 - Terminations Occupational Bands
Male, African
Male, Coloured
Male, Indian
Male, Total Blacks
Male, White
Female, African
Female, Coloured
Female, Indian
Female, Total
Blacks
Female, White
Total
Top Management, Permanent 0 0 0 0 0 1 0 0 1 0 1 Senior Management, Permanent 0 0 1 0 0 1 0 0 1 0 2 Professionally qualified and experienced specialists and mid-management, Permanent
4 0 1 2 0 5 0 0 2 1 11
Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent
7 0 0 3 0 11 0 0 7 0 18
Semi-skilled and discretionary decision making, Permanent
3 0 0 1 0 4 0 0 1 0 7
Contract (Top Management), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Senior Management), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Professionally qualified), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Skilled technical), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Semi-skilled), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Unskilled), Permanent 0 0 0 0 0 0 0 0 0 0 0 TOTAL 14 0 2 6 0 22 0 0 12 1 39
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 91 -
Male, African
Male, Coloured
Male, Indian
Male, Total Blacks
Male, White
Female, African
Female, Coloured
Female, Indian
Female, Total
Blacks
Female, White
Total
No data 0 0 0 0 0 0 0 0 0 0 0
TABLE 5.6 - Disciplinary Action Disciplinary action
Male, African
Male, Coloured
Male, Indian
Male, Total Blacks
Male, White
Female, African
Female, Coloured
Female, Indian
Female, Total
Blacks
Female, White
Total
Tampering with Supply Chain management procurement 0 0 0 0 0 0 0 0 0 0 0
Drunk on duty and un-authorised absence from duty 1 0 0 1 0 0 0 0 0 0 1
Coluding with suppliers in executing procurement functions within CFO 0 0 0 0 0 0 0 0 0 0 0
TOTAL 1 0 0 1 0 0 0 0 0 0 1
TABLE 5.7 - Skills Development Occupational Categories
Male, African
Male, Coloured
Male, Indian
Male, Total Blacks
Male, White
Female, African
Female, Coloured
Female, Indian
Female, Total
Blacks
Female, White
Total
Legislators, Senior Officials and Managers 18 3 9 30 3 17 5 11 35 4 70 Professionals 118 0 8 122 0 123 2 20 145 4 275 Technicians and Associate Professionals 18 0 0 18 0 61 2 5 68 8 94 Clerks 18 0 0 17 0 25 0 7 34 0 50 Service and Sales Workers 0 0 0 0 0 0 0 0 0 0 0 Skilled Agriculture and Fishery Workers 0 0 0 0 0 0 0 0 0 0 0 Craft and related Trades Workers 0 0 0 0 0 0 0 0 0 0 0 Plant and Machine Operators and Assemblers 1 0 0 1 0 2 0 0 0 0 3 Elementary Occupations 3 0 0 3 0 0 0 0 0 0 3 TOTAL 176 3 17 191 3 228 9 43 282 16 495 Employees with disabilities 0 0 0 0 0 0 0 0 0 0 0
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 92 -
HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 6.1 - Performance Rewards by Race, Gender and Disability
Demographics Number of
Beneficiaries Total
Employment
Percentage of Total
Employment Cost (R'000)
Average Cost per
Beneficiary (R)
African, Female 20 125 11.2 362 17 256 African, Male 12 140 7.4 260 20 009 Asian, Female 10 25 34.5 183 18 347 Asian, Male 3 13 20 164 54 524 Coloured, Female 1 3 50 35 17 525 Coloured, Male 0 3 0 0 0 Total Blacks, Female 31 153 14.9 581 17 603 Total Blacks, Male 15 156 8.2 424 26 481 White, Female 11 25 44 276 25 078 White, Male 2 8 22.2 49 24 398 Employees with a disability 1 5 0 0 0 TOTAL 59 342 13.7 1 329 21 439 TABLE 6.2 - Performance Rewards by Salary Band for Personnel below Senior Management Service
Salary Band Number of
Beneficiaries Total
Employment
Percentage of Total
Employment Cost (R'000)
Average Cost per
Beneficiary (R)
Skilled (Levels 3-5) 6 55 10.9 37 6 167 Highly skilled production (Levels 6-8) 14 77 18.2 171 12 214 Highly skilled supervision (Levels 9-12) 33 163 20.2 775 23 485 Contract (Levels 1-2) 0 0 0 0 0 Contract (Levels 3-5) 0 0 0 0 0 Contract (Levels 6-8) 0 0 0 0 0 Contract (Levels 9-12) 0 0 0 0 0 Periodical Remuneration 0 0 0 0 0 TOTAL 53 295 18 983 18 547
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 93 -
TABLE 6.3 - Performance Rewards by Critical Occupation
Critical Occupations Number of Beneficiaries
Total Employment
Percentage of Total
Employment Cost (R'000)
Average Cost per
Beneficiary (R)
Administrative related 5 39 12.8 151 30 200 Bus and heavy vehicle drivers 1 6 16.7 11 11 000 Client inform clerks(switchbrecept inform clerks)
0 2 0 0 0
Communication and information related 1 4 25 41 41 000 Finance and economics related 0 33 0 20 0 Financial and related professionals 16 44 36.4 383 23 938 Financial clerks and credit controllers 6 16 37.5 46 7 667 Head of department/chief executive officer 0 1 0 0 0 Human resources &organisatdevelopm& relate prof
3 16 18.8 51 17 000
Human resources clerks 3 17 17.6 61 20 333 Human resources related 0 5 0 0 0 Information technology related 2 2 100 44 22 000 Library mail and related clerks 0 6 0 0 0 Material-recording and transport clerks 0 3 0 0 0 Messengers porters and deliverers 0 3 0 0 0 Other administrat& related clerks and organisers
3 28 10.7 47 15 667
Other administrative policy and related officers
2 41 4.9 41 20 500
Other information technology personnel. 4 6 66.7 53 13 250 Other occupations 0 0 0 0 0 Rank: Unknown (Economist) 0 1 0 0 0 Risk management and security services 0 0 0 0 0 Secretaries & other keyboard operating clerks 7 23 30.4 58 8 286 Senior managers 6 46 13 323 53 833 TOTAL
59 342 17.3 1330 22 542
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 94 -
TABLE 6.4 - Performance Related Rewards (Cash Bonus) by Salary Band for Senior Management Service
SMS Band Number of Beneficiaries
Total Employment
Percentage of Total
Employment Cost (R'000)
Average Cost per
Beneficiary (R)
% of SMS Wage Bill
Personnel Cost SMS (R'000)
Band A 4 34 11.8 186 46 500 0.5 34 784 Band B 0 11 0 39 0 0.4 10 439 Band C 2 1 200 121 60 500 3.8 3 216 Band D 0 1 0 0 0 0 0 TOTAL 6 47 12.8 346 57 666.7 0.7 48 439
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 95 -
HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 7.1 - Foreign Workers by Salary Band
Salary Band Employment at Beginning
Period
Percentage of Total
Employment at End of
Period
Percentage of Total
Change in Employment
Percentage of Total
Total Employment at Beginning
of Period
Total Employment
at End of Period
Total Change in
Employment
Senior management (Levels 13-16)
1 50 1 50 0 0 2 2 0
Contract (Levels 13-16) 1 50 1 50 0 0 2 2 0 TOTAL 2 100 2 100 0 0 2 2 0 TABLE 7.2 - Foreign Workers by Major Occupation
Major Occupation Employment at Beginning
Period
Percentage of Total
Employment at End of
Period
Percentage of Total
Change in Employment
Percentage of Total
Total Employment at Beginning
of Period
Total Employment
at End of Period
Total Change in
Employment
Professionals and managers 2 100 2 100 0 0 2 2 0 TOTAL 2 100 2 100 0 0 2 2 0
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 96 -
HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 8.1 - Sick Leave for Jan 2013 to Dec 2013
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)
Total number of Employees using Sick
Leave
Total number of days with medical
certification Skilled (Levels 3-5) 401 77.3 40 10.5 10 159 380 310 Highly skilled production (Levels 6-8) 610 76.1 83 21.8 7 433 380 464 Highly skilled supervision (Levels 9-12)
936 73.1 130 34.2 7 1 542 380 684
Senior management (Levels 13-16) 186 73.1 35 9.2 5 581 380 136 Contract (Levels 1-2) 76 32.9 31 8.2 2 15 380 25 Contract (Levels 3-5) 174.5 43 49 12.9 4 76 380 75 Contract (Levels 6-8) 21 95.2 5 1.3 4 11 380 20 Contract (Levels 9-12) 34 79.4 5 1.3 7 56 380 27 Contract (Levels 13-16) 5 20 2 0.5 3 15 380 1 TOTAL 2443.5 71.3 380 100 6 2 888 380 1 742 TABLE 8.2 - Disability Leave (Temporary and Permanent) for Jan 2013 to Dec 2013
Salary Band Total Days % Days with
Medical Certification
Number of Employees
using Disability
Leave
% of Total Employees
using Disability
Leave
Average Days per Employee
Estimated Cost (R'000)
Total number of days with medical
certification
Total number of Employees
using Disability
Leave Skilled (Levels 3-5) 19 100 1 25 19 9 19 4 Highly skilled production (Levels 6-8) 77 100 1 25 77 54 77 4 Highly skilled supervision (Levels 9-12)
146 100 1 25 146 147 146 4
Senior management (Levels 13-16) 8 100 1 25 8 24 8 4 TOTAL 250 100 4 100 63 234 250 4
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 97 -
TABLE 8.3 - Annual Leave for Jan 2013 to Dec 2013
Salary Band Total Days Taken
Average days per
Employee
Number of Employees who took
leave
Skilled (Levels 3-5) 805 18 45 Highly skilled production (Levels 6-8) 2151 21 104 Highly skilled supervision (Levels 9-12)
3585 20 179
Senior management (Levels 13-16) 1137 23 50 Contract (Levels 1-2) 465 8 57 Contract (Levels 3-5) 886.92 10 88 Contract (Levels 6-8) 67 8 8 Contract (Levels 9-12) 111 11 10 Contract (Levels 13-16) 91 13 7 TOTAL 9298.92 17 548 TABLE 8.4 - Capped Leave for Jan 2013 to Dec 2013
Salary Band Total days of capped
leave taken
Average number of days taken
per employee
Average capped leave
per employee as
at 31 December
2013
Number of Employees who took Capped
leave
Total number of
capped leave available at
31 December
2013
Number of Employees
as at 31 December
2013
Highly skilled production (Levels 6-8) 5 5 54 1 1237 23 Highly skilled supervision (Levels 9-12)
2 2 67 1 2088 31
TOTAL 7 4 62 2 3 325 54
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 98 -
TABLE 8.5 - Leave Payouts
Reason Total
Amount (R'000)
Number of Employees
Average Payment per
Employee (R)
Capped leave payouts on termination of service for 2013/14 0 0 0
Current leave payouts on termination of service for 2013/14 201 12 16750
TOTAL 201 12 16 750 TABLE 9.1 - Details of Health Promotion and HIV/AIDS Programmes [tick Yes/No and provide required information] Question Yes No Details, if yes 1. Has the department designated a member of the SMS to implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position.
X
Mrs. Kogie Chetty: Senior Manager: HRM&D
2. Does the department have a dedicated unit or have you designated specific staff members to promote health and well being of your employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose.
X
The Department has a dedicated EHWP Sub Directorate that reports directly to the Senior Manager: HRM&D. The Unit comprises of two employees at a Deputy Manager (SL11) and Practitioner (SL07) level. The annual EHWP budget which also incorporates special projects relating to youth, PWD's and gender programmes is R350 000.00
3. Has the department introduced an Employee Assistance or Health Promotion Programme for your employees? If so, indicate the key elements/services of the programme. X
Professional Counselling and external referral if necessary, monthly onsite Chronic disease Management, Healthy lifestyle promotions, Stress management programmes, financial literacy, monitor implementation and management of SHERQ, analysis and management of Heath and productivity Programmes.
4. Has the department established (a) committee(s) as contemplated in Part VI E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent.
X
The Department uses one Consultative Forum that serves as the committee to monitor, discuss and evaluate all HR processes including the Employee Health and Wellness Program. The Committee is chaired by the Senior Manger: HRM, has a representative from every business Unit in the Department and also comprises of our social partners viz Provincial Organised labour
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 99 -
representatives.
5. Has the department reviewed the employment policies and practices of your department to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so reviewed. X
The Recruitment and Retention policies of the Department have been reviewed and are reviewed annually to ensure that no unfair discrimination is practiced against any employee during the processes of recruitment and retention which includes employees who are HIV positive. All HR policies are reviewed annually to ensure that elements of discrimination are not present in policies.
6. Has the department introduced measures to protect HIV-positive employees or those perceived to be HIV-positive from discrimination? If so, list the key elements of these measures.
X
Establishment of an Employee Health Wellness unit, Awareness campaigns on issues of stigma, HIV prevention and management as well as issues relating to adherence, inclusion of a disciplinary clause on the HIV, AIDS & TB policy in case a discriminatory act is committed, all documents regarding employee's health, produced in terms of PILLAR are kept in the wellness unit to ensure confidentiality. Availability of an onsite Wellness clinic as well as quarterly HCT campaigns are some of the ways of dealing with stigma as all employees are encouraged to use the clinic, not just the HIV positive employees as a means to provide treatment, care and support for all employees including those that are infected and affected by HIV&AIDS.
7. Does the department encourage its employees to undergo Voluntary Counselling and Testing? If so, list the results that you have achieved.
X
The number of employees that participated in HCT increased from 175 to 187 compared to the previous financial year, only 2 employees tested HIV positive.
8. Has the department developed measures/indicators to monitor & evaluate the impact of your health promotion programme? If so, list these measures/indicators.
X
Annual client satisfaction surveys, evaluation questionnaires at the end of workshops.
HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 10.1 - Collective Agreements
Subject Matter Date nil
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 100 -
TABLE 10.2 - Misconduct and Discipline Hearings Finalised Outcomes of disciplinary hearings Number Percentage of Total Total Dismissal (employee resigned whilst appealing outcome) 1 33.4 1 Final written warning 2 66.6 2 TOTAL 3 100 3 TABLE 10.3 - Types of Misconduct Addressed and Disciplinary Hearings Type of misconduct Number Percentage of Total Total Colluding with suppliers in executing procurement functions within CFO 0 0 0 Unacceptable behaviour/ drunk on duty 1 33.3 3 Tampering with Supply Chain management procurement 0 0 0 TOTAL 1 100 3 TABLE 10.4 - Grievances Lodged Number of grievances addressed Number Percentage of Total Total TOTAL 6 100 6 TABLE 10.5 - Disputes Lodged Number of disputes addressed Number % of total Upheld 0 0 Dismissed 0 0
TABLE 10.6 - Strike Actions Total number of person working days lost 0
Total cost(R'000) of working days lost 0
Amount (R'000) recovered as a result of no work no pay 0
TABLE 10.7 - Precautionary Suspensions Number of people suspended 0 Number of people whose suspension exceeded 30 days 0 Average number of days suspended 0 Cost (R'000) of suspensions R 0.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 101 -
HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 11.1 - Training Needs identified
Occupational Categories Gender Employment Learnerships
Skills Programmes &
other short courses
Other forms of training Total
Legislators, senior officials and managers Female 18 0 61 3 64 Male 25 0 115 5 120 Professionals Female 52 0 335 9 344 Male 54 0 331 18 349 Technicians and associate professionals Female 41 0 25 3 28 Male 41 0 15 6 21 Clerks Female 66 0 211 19 230 Male 35 0 83 15 98 Service and sales workers Female 0 0 0 0 0 Male 1 0 0 0 0 Skilled agriculture and fishery workers Female 0 0 0 0 0 Male 0 0 0 0 0 Craft and related trades workers Female 0 0 0 0 0 Male 0 0 0 0 0 Plant and machine operators and assemblers Female 1 0 0 0 0 Male 5 0 6 0 6 Labourers & Related Workers Female 0 0 0 0 0 Male 3 0 11 0 11 Gender sub totals Female 178 0 632 34 666 Male 164 0 550 44 594 Total
342 0 1182 78 1260
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 102 -
TABLE 11.2 - Training Provided Occupational Categories
Gender Employment Learnerships
Skills Programmes &
other short courses
Other forms of training
Total
Legislators, senior officials and managers Female 18 0 42 0 42 Male 25 0 30 1 31 Professionals Female 52 0 150 3 153 Male 54 0 122 0 122 Technicians and associate professionals Female 41 0 76 0 76 Male 41 0 18 0 18 Clerks Female 66 0 31 2 33 Male 35 0 17 0 17 Service and sales workers Female 0 0 0 0 0 Male 1 0 0 0 0 Skilled agriculture and fishery workers Female 0 0 0 0 0 Male 0 0 0 0 0 Craft and related trades workers Female 0 0 0 0 0 Male 0 0 0 0 0 Plant and machine operators and assemblers Female 1 0 0 0 0 Male 5 0 3 0 3 Labourers & Related Workers Female 0 0 0 0 0 Male 3 0 0 0 0 Gender sub totals Female 178 0 299 5 304 Male 164 0 190 1 191 Total
342 0 489 6 495
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 103 -
HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal -Finance TABLE 12.1 - Injury on Duty Nature of injury on duty Number % of total Required basic medical attention only 1 100 Temporary Total Disablement 0 0 Permanent Disablement 0 0 Fatal 0 0 Total 1
HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu Natal - Finance TABLE 13.1 - Report on consultant appointments using appropriated funds
Project Title Total number of consulting firms that worked on the project
Duration: Work days
Contract value in Rand
Forensic investigation into the award of the IT contract @ KZN Provincial Treasury 1 40 R 184 452.00
Forensic Investigation into the high fuel consumption fuel @ Dannhauser Municipality 1 160 R 413 384.04
Audit on Public Entities support-Department of Economic development & Tourism 1 20 R 145 920.00
Performance Information and review of consolidated financial statements 2013/2014 KZN Provincial treasury 1 15 R 72 960.00
Performance information @ KZN Provincial Treasury 1 10 R 41 040.00
Testify at DC Hearing of Department of Transport 1 5 R 159 600.00
Resource for forensic investigation @ ILembe district municipality 1 40 R 454 275.75
Audit on subsistence and travel allowance- COGTA 1 15 R 109 440.00
Seconded to cluster audit & risk committee 1 20 R 277 248.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 104 -
Consultants for IT Strategy Review 1 40 R 544 000.00
Resources IT audit of system 1 10 R 166 668.00
Resources for Compliance Monitoring 1 10 R 54 720.00
IT application control reviews at various departments and public entities 1 15 R 180 405.00
Resources for (IAU) forensic Investigation 1 120 R 851 887.80
AUDIT on SCM Management @ the DEPT of agriculture 1 40 R 304 152.00
Audit on Asset Management @ DEPT of Education 1 20 R 109 440.00
Audit on Records Management @ DEPT of education 1 20 R 109 440.00
Audit on operation Hlasela @ dept of community safety and liaison 1 240 R 2 675 789.00
Forensic Investigation: alleged irregularities relating to service providers @ UMzinyathi district municipality 1 50 R 507 619.20
Internal audit and audit committee performance evaluation for delegated municipalities 1 160 R 967 255.23
Audit on performance information on DEPT of cooperative Governance & traditional Affairs 1 15 R 114 000.00
Audit on Supply Chain Management: Trade and Investment KZN 1 20 R 132 240.00
Request for appropriately qualified & experienced staff to undertake internal audit @ Mjindi farming SCM & human resources management & development 1 45 R 401 280.00
To conduct an Audit in Year Monitoring @ the KZN Provincial Treasury 1 40 R 273 600.00
Audit on Supply Chain Management @ the DEPT of Economic Development & Tourism 1 20 R 173 280.00
A Secondment of resources to perform review IT strategy @ various departments 1 40 R 310 080.00
Audit on Human Resource Management Royal household Trust 1 15 R 27 360.00
Audit on Performance Information- Royal household Trust 1 20 R 95 760.00
Forensic investigation of alleged irregularities @ KZN Depart Of Health relating to SCM care professionals 1 200 R 1 612 142.40
Resources for IAU For Forensic Investigation:DEPT Of Community Safety & Liaison 1 35 R 570 399.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 105 -
Lack of Capacity for forensic Investigation Internal audit 1 40 R 898 741.80
Audit Review of key financial control department of Transport PHASE 2 1 25 R 310 080.00
Audit Review of Key Financial control department of Social development PHASE 1 1 25 R 310 080.00
Secondment of Resources for the audit of performance information of Trade and Investment in KZN 1 20 R 116 000.00
Secondment of resources to perform review of I.T Strategy @ various department 1 40 R 310 080.00
Forensic investigation internal Audit 1 200 R 800 314.00
IT application control reviews at various departments and public entities 1 20 R 155 040.00
Audit at one home one garden at Department of Agriculture and environmental affairs 1 215 R 2 736 712.50
Lack of Capacity for forensic Investigation 1 230 R 3 639 126.81
Audit Human Resource Management @ KZN Provincial Treasury 1 15 R 68 400.00
Audit Human Resource Management @ KZN Sharks Board 1 30 R 161 880.00
Audit Human Resource Management @ KZN Dept of Economic Development & Tourism 1 15 R 68 400.00
Audit on SCM of Department of Human Settlement 1 30 R 145 920.00
Audit on Performance Information @ DEPT of Social development 1 40 R 200 640.00
Audit on Asset Management @ DEPT of Social development 1 40 R 200 640.00
Audit on Performance information @ the dept. of Economic development 1 15 R 54 720.00
Resources for audit @ department of transport 1 20 R 82 080.00
Resources To Conduct Audit on Performance Information 1 20 R 82 080.00
To Conduct Audit Assets Management DEPT of sport and Recreation 1 20 R 109 440.00
Forensic accounting services is required to attend a DC enquiry 1 10 R 11 596.00
Resources to the seconded to dept of Health and Education 1 40 R 554 496.00
Business process mapping for the revenue fund 1 30 R 347 130.00 Application Controls Review of the Legit-Mate System for dept of Transport 1 35 R 335 600.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 106 -
External Service Providers Secondment For Value IT analysis For the Dept of Health 1 25 R 310 080.00
Forensic Services for KZN Provincial Treasury 1 20 R 296 400.00
Evaluation of the effectiveness of Internal Audit units and Audit committees @ KZN Municipalities 1 80 R 957 068.00
Audit on Human Resource Management Royal household Trust 1 20 R 68 400.00
Forensic services for KZN Provincial Treasury: DEPT of agriculture and Environmental affairs 1 40 R 446 904.50
Resources needed to conduct an audit on SCM @ DEPT of Public Works 1 30 R 228 729.60
Resources to perform review of IT strategy @ various departments 1 45 R 620 160.00
Forensic investigation @ UMkhanyakude District Municipality 1 50 R 816 726.00
Performance of risk based internal audit project at RBIDZ 1 20 R 82 080.00
Audit on Performance Information at RHH and RHT 1 25 R 109 440.00
Audit on performance information at Department of Agriculture and Environmental Affairs 1 20 R 82 080.00
Resources needed to conduct an audit on transfer payments @ dept of sports and recreation 1 20 R 140 448.00
Audit on movable assets Learner Transport, SCM and PI @ the department of Transport 1 40 R 465 120.00
Audit on AG follow- up @ the DEPT of Education 1 20 R 109 440.00
Audit on transfer Payments @ the DEPT of Education 1 35 R 401 280.00
Audit on Fleet Management at Department of Education 1 15 R 109 440.00
Audit on Special Schools-Learning Barriers @ the DEPT of Education 1 40 R 451 440.00
Audit on Supply Chain Management @ DEPT of Education 1 35 R 401 280.00
Audit on human Resource Management @ the DEPT Of Education 1 15 R 109 440.00
Audit on Performance information @ the DEPT of Education 1 25 R 401 280.00
Forensic Investigation alleged irregularities relating to information technology & SCM systems: Vulamehlo Local Municipality 1 45 R 960 592.50
Audit Review of key financial control- Office of the Premier 1 20 R 150 480.00
Audit Review of key financial controls dept of economic development 1 20 R 150 480.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 107 -
Forensic Investigation: alleged irregularities @KZN dept of Rural development and land Reform: Payment of the Mangethe land claim to the Bhekafana community trust 1 45 R 905 410.80
Forensic Investigation 1 15 R 194 731.95
Forensic Investigation 1 45 R 970 048.80
Resources for Contractor Performance Management 1 15 R 82 000.00
Forensic investigation into alleged irregularities at KZN DoE for the provision of services relating to borehole drilling and supply of water to schools in UMzimkhulu 1 25 R 450 186.00
IT audit for general controls surrounding the financial and performance management systems 1 15 R 150 708.00
Secondment of Resources for the Review of IT Strategy documents 1 45 R 930 240.00
Resource needed for the Audit of application controls for Depart of Education 1 10 R 116 280.00 Audit on SHEQ- Quality Management Richards bay Industrial development 1 20 R 232 560.00
Resources for Audit on property Management inclusive of housing fund on dept of Human Settlement 1 25 R 656 640.00 Resources audit performances information at the DEPT of Human Settlement 1 20 R 200 640.00
Resources for Audit on Supply Chain Management at the DEPT of Human Settlement 1 20 R 200 640.00
Resources for Audit on transfer payments at DEPT of human settlement 1 20 R 200 640.00
Audit on Network Security Review @ the DEPT of Public Works 1 25 R 306 634.00
Virtual Private network security review @ KZN Provincial Treasury 1 15 R 187 167.00
Secondment of resources to perform review of I.T Strategy @ various department 1 30 R 310 080.00
Review of the Referral system @ DEPT of Health 1 120 R 5 881 824.30
Forensic investigation into various allegation at Ezemvelo KZN Wildlife: FR 2013 1 220 R 1 090 843.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 108 -
Forensic investigation into the transfer payment made to non profit organisations by the KZN Department of Social Development, Phase 1:FR/2013 1 160 R 1 358 082.00
Audit on HRM (OTP) 1 20 R 184 680.00
Forensic investigation 1 30 R 260 648.00 Investigation into alleged regular/irregular cancellation of bid ZNT M00526W 1 15 R 89 490.00
Forensic Investigation 1 20 R 146 718.00
Forensic Investigation 1 20 R 146 718.00
Forensic investigation Internal Audit of KZN DoT 1 140 R 4 966 746.00
Audit on performance information- Human Settlement 1 15 R 150 480.00
Audit on performance information @ Amafa 1 15 R 68 400.00
Audit on research and compliance audit at Amafa 1 15 R 68 400.00
Audit @ dept of Human Settlement 1 20 R 123 120.00
Conduct Performance audit on Infrastructure development, DEPT of Education, Social Development and Arts and Culture 1 140 R 5 982 955.00
Audit Review of key financial control department of Community Safety PHASE 2 1 20 R 150 480.00
Audit Review of Key Financial control department of Human settlement for PHASE 1 1 20 R 150 480.00
Development of training material & facilitation of training in all provincial departments 1 40 R 381 216.00 Resource needed to conduct an audit on financial management @ KZN Sharks Board 1 15 R 68 400.00
Investigation of allegations of fraud & corruption related to prepaid electricity: Kwadukuza Local Municipality 1 25 R 245 784.00
Investigation of allegations of irregular payments @ Sisonke district Municipality relating to payments 1 25 R 433 884.00
Investigation into alleged irregular conduct into awarding of a tender - UGu Municipality Regional Bulk Water Scheme 1 45 R 797 954.40
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 109 -
Audit of disaster management and occupational health and safety at the department of Humana Settlement 1 20 R 243 504.00
Risk Based Audits @ Richards Bay Industrial Development 1 225 R 1 475 160.00
Forensic Investigation: ILembe district Municipality 1 200 R 1 071 075.60
Forensic Investigation: UGu District Municipality 1 200 R 984 618.00
Forensic Investigation Into alleged irregularities @ Dannhauser Local Municipality 1 50 R 612 983.70
Forensic Investigation Into alleged irregularities @ UThukela district Municipality 1 35 R 590 360.40
Forensic investigation 1 140 R 4 382 098.00
Conduct an Audit on Early Childhood Development Programme @ dept of Education 1 60 R 401 280.00
Review of application controls and security reviews of the biometric access control management system 1 70 R 345 990.00
Resources for audit on performance information at dept. of Health 1 50 R 300 960.00
Audit on SCM @ the DEPT of Arts and Culture 1 60 R 200 640.00
Audit on Transfer Payments @ the DEPT Arts and Culture 1 65 R 200 640.00
To conduct an audit AG follow up @ department of sport & Recreation 1 40 R 109 440.00 To conduct an audit on Transfer payment @ the dept. of sports & recreation 1 45 R 250 800.00 Conduct an Audit on Supply Chain Management @ the dept. of sport & Recreation 1 20 R 68 400.00
Audit on performance information @ the dept. of Sports & Recreation 1 50 R 250 800.00
Appointment of External service providers for performance of Internal audits @ the KZN Provincial Treasury 1 30 R 91 200.00
Audit on transfer payments @ DEPT of Health 1 40 R 136 800.00
Audit on Asset Management @ DEPT of Health 1 45 R 273 600.00
Audit on performance INFO: Trade and Investment KZN 1 20 R 36 000.00
Audit on supply chain management DEPT OF COGTA 1 25 R 132 240.00
Addendum- Professional Forensic investigation services: Alleged irregularities pertaining to UMzimkhulu Project: Sisonke District 1 50 R 573 552.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 110 -
Municipality
Professional Forensic Investigation : Alleged irregularities pertaining to various project KZNDEDT 1 230 R 3 903 702.00
Investigation on fraud and corruption relating to information technology solution project in the Office of the Premier KZN 1 160 R 639 360.00
Audit on research and compliance audit at Amafa 1 40 R 82 080.00
Audit on tourism development Audit at KZN Tourism 1 20 R 104 880.00
forensic investigation 1 30 R 121 136.40
SCM Audit @ KZN Natal-Liquor Authority Panel 1 25 R 145 920.00
Audit on AG follow- up KZN Liquor authority 1 20 R 109 440.00
Audit on review of key financial controls @ KZN Liquor authority 1 20 R 109 440.00
Audit on Performance information @ KZN Liquor authority 1 20 R 109 440.00
Audit on Inspection & compliance @ KZN Liquor authority 1 25 R 145 920.00 Audit Review of KEY Financial controls @ the DEPT of Education PHASE 1 1 30 R 310 080.00 Audit Review of KEY Financial controls @ the DEPT of Agriculture PHASE 2 1 30 R 310 080.00
To perform quality assurance on internal audit and audit committee performance evaluation 1 45 R 993 373.92
Resources needed to conduct audits an interim financial statements 1 40 R 460 560.00
Audit on administrative management audit @ KZN Liquor Authority 1 20 R 150 480.00
AFS Review for KZN Department and public entities. 1 25 R 528 960.00
Perform a Teammate upgrade, customization and refresher training 1 5 R 101 124.84
TeamMate annual maintenance charge 1 1 R 244 447.81
Forensic Investigation 1 20 R 146 718.00
Forensic Investigation 1 20 R 146 718.00
MSP-Secondment of Resource to KZN Provincial Treasury 1 46 R 232 560.00
Municipal Support Program -Review of Value added Tax (VAT) Returns and Processes 1 48 R 280 000.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 111 -
Municipal support program -VAT Review (amounts Incl. VAT and disbursements UMtshezi and Municipality 1 48 R 280 000.00
MSP Review of value added TAX (VAT) 1 48 R 280 000.00
Municipal Support Program -UGU district Municipality 1 48 R 280 000.00
Municipal support program-VAT Review :Newcastle Municipality 1 48 R 280 000.00
Municipal support program-VAT UMgungundlovu 1 58 R 280 000.00
MSP-Secondment of resource to KZN Provincial Treasury 1 66 R 232 560.00
Cash Flow Management- UGu District Municipality 6 50 R 850 000.00
Cash Flow Management- UGu District Municipality 3 40 R 400 000.00
Cash Flow Management- Sisonke District Municipality 3 40 R 400 000.00
MSP Control Enhancement-UMzinyathi District Municipality 6 50 R 850 000.00
MSP Control Enhancement-Sisonke District Municipality 6 50 R 850 000.00
MSP Control Enhancement-Greater Kokstad Municipality 6 50 R 850 000.00
MSP: Internal control Enhancement Richmond municipality 6 35 R 850 000.00
MSP-Indaka 6 48 R 850 000.00
Cash flow management- Greater Kokstad Municipality 3 40 R 280 000.00
Municipal Finance Support Mbalenhle E Khubone @ 300 per hour 1 121 R 355 680.00
MSP-Secondment of resource to KZN Provincial Treasury 1 61 R 253 200.00
Municipal support program (MSP)-Secondment of Resource to KZN Provincial Treasury Municipal finance 1 123 R 439 401.60
Municipal Support program secondment of Resource to KZN Provincial treasury (MFU) 1 104 R 312 998.40
MSP-Secondment of resource to KZN Provincial Treasury 1 77 R 232 560.00
Cash Flow Management- eDumbe Municipality 7 54 R 400 000.00
MSP-Secondment of resource to KZN Provincial Treasury 1 74 R 232 560.00 Resources for KZN Provincial MSP-Secondment of Resources for Municipal 1 116 R 439 401.60
MSP-Review of value added Tax (VAT) Returns and Processes 5 48 R 280 000.00
MSP-Review of value added Tax (VAT) Returns and Processes 5 45 R 280 000.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 112 -
Municipal Support program secondment of Resource to KZN Provincial treasury (MFU) 7 104 R 312 998.40
Cash flow management- AbaQulusi Municipality 7 45 R 280 000.00
Internal Control enhancement- eDumbe Municipality 12 57 R 850 000.00
Internal control enhancement- Jozini Municipality 12 63 R 850 000.00
Internal Control Enhancement-Abaqulusi Municipality 12 57 R 850 000.00
MSP-Review of value added Tax (VAT) Returns and Processes 5 24 R 280 000.00
MSP-Review of value added Tax (VAT) Returns and Processes 5 24 R 280 000.00
Internal control enhancement- Hlabisa Municipality 12 68 R 850 000.00
Internal control enhancement- Umhlabuyalingana Municipality 12 55 R 850 000.00 Resources for KZN Provincial MSP-Secondment of Resources for Municipal 1 133 R 439 401.60
MSP-Secondment of resource to Mtubatuba Municipality 2 67 R 907 394.40
MSP-Secondment of resource to KZN Provincial Treasury 1 77 R 256 089.60
Cash flow management- Greater Kokstad Municipality 1 40 R 120 000.00
Cash flow management- AbaQulusi Municipality R 120 000.00
Cash flow management- Hlabisa Municipality 2 24 R 120 000.00
Cash Flow Management-Mtubatuba Municipality R 230 682.00
Cash Flow Management-Big 5 False Bay Municipality 4 59 R 406 296.00
Cash flow management-Hlabisa Municipality 2 30 R 400 000.00 Resources for KZN Provincial MSP-Secondment of Resources for Municipal 2 265 R 878 803.20
Municipal support programme secondment of resource to KZN Provincial Treasury 2 104 R 625 996.80
MSP-Secondment of resource to KZN Provincial Treasury 1 77 R 256 089.60
MSP-Secondment of resource to KZN Provincial Treasury 1 77 R 256 089.60
Education Capped Leave Validation Project 2013/14 1 73 R 308 415.53
Recruitment of resources from the financial management panel for the assistance with the dept. of Health movable asset register 1 156 R 997 500.00
Dept of education capped leave validation project 1 120 R 357 280.00
GRAP training programme 4 114.5 R 1 100 000.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 113 -
Resource for KZN Provincial Treasury GRAP Training 4 250 R 598 500.00
Resource on the Dept AFS Projects KZN Treasury 3 46 R 448 875.00
Assistance with the Department of Health Movable Assets Register (Extension of contract 2013/2014) 1 200 R 1 258 560.00
Irregular Expenditure Project 1 100 R 344 000.00
Department of Health year end processes verification project: 2012/2013 1 52 R 189 696.00
Resource for Municipal Debt Project-2013/14 financial year 1 127.5 R 534 888.00
recruitment of resources from the financial management panel for the assistance with the dept. of Health movable asset register 2013/2014 1 156 R 997 500.00
Resource on DOE capped leave validation project 2013/14 FY- Phase 3 2 265 R 903 800.00
Dept of education capped leave validation project 1 90 R 351 320.00
Reconciliation of accommodation & travel expenses 1 25 R 92 000.00
Resource on the department of public works Immovable assets 2014/15 financial year 3 276 R 1 695 607.50
Movable assets project-Dept of Public works 2 175 R 740 110.00
AFS preparation for Endumeni Municipality 2012/13 2 97.5 R 495 900.00
KZN Department of Health year end processes verification project: 2012/12 financial year 1 58.5 R 23 712.00
Resource on the AFS preparation for Umngeni Municipality 1 37.5 R 150 000.00
Resource on Municipal DEBT Project:2013/14 Financial Year 1 127.5 R 534 888.00
Recruitment of resources from the financial management panel for the assistance with the department of health movable asset register 1 150 R 957 600.00
Reconciliation of accommodation & travel expenses 1 25 R 92 000.00
Department of Health year end processes verification project: 2012/2013 2 104 R 450 528.00
Preparation of AFS and updating the assets register for Endumeni Municipality 1 45 R 184 680.00
Department of Health year end processes verification project: 2012/2013 R 189 696.00
Education Capped Leave Validation 1 69 R 284 284.00
Recruitment of resources from the financial management panel for the assistance with the department of health movable asset register 2013/2014 2 312.5 R 1 852 500.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 114 -
Review of the internal control functions @ the department of health and education 3 51 R 304 608.00
Resource on DOE capped leave validation project 2013/14 FY- Phase 3 1 90 R 490 400.00
Dept of education capped leave validation project 2 175 R 274 320.00
Resource to conduct the review of the annual financial (Umhlabuyalingana& UMkhanyakude Municipality) 3 40 R 416 000.00
Resource on the department of public works Immovable assets 2014/15 financial year 1 100 R 387 600.00
Resource for Municipal Debt Project-2013/14 financial year 1 127.5 R 534 888.00
Irregular Expenditure Project 2 200 R 1 073 600.00
Public Works for Immovable Assets 2 175 R 1 089 270.00
Resources on DEPT of education capped leave validation project 2013/14 3 219 R 1 118 744.38
Resources on the Review of the annual Financial Statements and technical support in identified municipalities:2012/13 financial year 1 30 R 312 000.00
Resources on DEPT of health Movable assets project:2013/14 financial 1 30 R 106 250.00
Recruitment of resources from the Financial management panel for the assistance with the department of health movable asset register 1 156 R 570 000.00
Investigation @ department of health by McCord Hospital 21 R 3 855 000.00
Conditional grant project 60 R 331 056.00
Irregular Expenditure Project 1 103 R 993 510.00
Department of Health year end processes verification project: 2012/2013 3 20 R 972 192.00
Resource to Conduct the review of AFS & Technical support:2012/13 3 187.5 R 650 000.00
Resource for Municipal Debt Project-2013/14 financial year 1 127.5 R 534 888.00
Recruitment of resources from the financial management panel for the assistance with the department of health movable asset register 3 155.25 R 3 233 635.00
Reconciliation of accommodation & travel expenses 1 25 R 92 000.00
Resource on the department of public works Immovable assets 2014/15 financial year 2 188 R 1 110 930.00
KZN Department of Health year end processes verification project: 2012/12 financial year 3 174 R 117 819.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 115 -
Irregular Expenditure Project 1 100 R 729 600.00
Resource to conduct the review of the annual financial (Ingwe, Kwadukuza&Ntambanana Municipality) 1 45 R 504 000.00
Education leave validation project 2013/14 4 286.5 R -
Recruitment of resources from the financial management panel for the assistance with the dept. of Health movable asset register 1 156 R 570 000.00
Resource on DOE capped leave validation project 2013/14 FY- Phase 3 4 322.5 R 1 545 480.00
The KZN department of education capped leave validation project 2013/2014 financial year -Phase 3 5 407.5 R 351 320.00
AFS preparation and updating asset register Umgeni municipality 2 203 R 1 138 176.00
Movable assets project-Dept of Public works 1 87.5 R 460 845.00
Irregular Expenditure Project 1 100 R 344 000.00
Resource for Municipal Debt Project-2013/14 financial year 2 235 R 1 549 602.00
Resource on DOE capped leave validation project 2013/14 FY- Phase 3 1 90 R 367 280.00
Recruitment of resources from the financial Management Panel for the assistance with the department of Health movable asset register 4 625 R 2 827 200.00
Resource on the Dept. of Education Capped leave project 2 140 R 596 904.00
Dept of education capped leave validation project 2 175 R 274 320.00
Resource on the department of public works Immovable assets 2014/15 financial year 2 200 R 1 208 400.00
AFS preparation for Endumeni Municipality 2012/13 (Extension of contract 2013/2014) 1 65 R 681 720.00
Investigation @ Depart of Health by McCord hospital 1 21 R 3 855 000.00 Resource on the department of Sport & Recreation UMgungundlovu Academy of Sport Verification project 1 variation R 175 000.00
Ndumo Regeneration project and programme management support 3 332 R 2 923 800.00 Ndumo Regeneration project 2 120 R 1 056 000.00 Municipal Infrastructure Crack Team Deployment 2 81 R 612 000.00
Deployment of resources assist in problematic projects :Education 1 19 R 142 200.00 Crack team- Municipal Finance Support 1 34 R 244 800.00 Municipal Infrastructure Crack Team Deployment 1 148 R 1 529 150.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 116 -
Deployment: Department of Education and COGTA 1 30 R 216 064.00 Improvement of Municipal service Delivery and improved planning with Nongoma Municipality 1 40 R 288 000.00 Crack team- Nongoma Municipality extension 1 60 R 432 000.00 Resources to assist Ndumo Social Facilitation: KZN 1 112 R 987 800.00 Crack team- To assist municipalities in the delivery of infrastructure for new & existing infrastructure assets within the Province of KZN Natal 2014 7 380 R 3 045 000.00 Crack team- PPP Unit Assistant 1 60 R 432 000.00
Resources for infrastructure asset evaluation and maintenance in Ezemvelo KZN wildlife 1 108 R 2 484 000.00
Improvement of Municipal service Delivery and improved planning 2 58 R 951 360.00
Improvement of Municipal service Delivery and improved planning 1 28 R 205 600.00 Support for the department of Human Settlement 5 300 R 1 776 000.00 To assist municipalities in the delivery of infrastructure for new & existing infrastructure assets within the Province of KZN Natal 2014 1 60 R 1 200 000.00 Crack team- Municipal Finance Support 1 106 R 1 672 200.00
Crack Team-Public works Final account 1 40 R 288 000.00
Deployment of resources assist in problematic projects :Education 2 39.5 R 284 400.00 Support for the department of Human Settlement 1 40 R 288 000.00
Undertaking of needs analysis-KZN Department of Education school and offices accommodation 1 40 R 307591.09 Crack team- Department of Agriculture 2 80 R 512 000.00 Crack team deployed to assist McCord’s Hospital 4 80 R 576 000.00 To assist municipalities in the delivery of infrastructure for new & existing infrastructure assets within the Province of KZN Natal 2014 1 50 R 480 000.00 Assist the Provincial Treasury with the roll out of Contract Management Services 225 R 1 000 278.18 Contract Management pilot project 7 225 R 1 566 399.00 To assist the Provincial Treasury with the roll out of contract management services 6 225 R 1 000 278.18 Phase -3 Contract Management, Pilot Project 5 150 R 1 312 781.70 Secondment of Temporary staff @ the department of Education 2 126 R 587 480.00 Secondment of resources to support the department of agriculture 1 123 R 3 597 440.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 117 -
To assist the Provincial Treasury with the roll out of contract management services 6 230 R 1 669 487.82 Contract Management pilot project 6 338 R 1 494 642.60 Additional as part of the MSP Program for support in SCM in UThukela District Municipality 1 63 R 547 728.00 To assist the Provincial Treasury with the roll out of contract management services 6 225 R 1 000 278.18 Phase -3 Contract Management, Pilot Project 6 365 R 1 874 837.04 Assist the Provincial Treasury with roll out of contract Management For DEDT, OTP & Royal household 6 223 R 988 004.66 Contract Management pilot project 6 350 R 1 566 399.00 Appointment of a panel of service providers to assist the Provincial Treasury with the roll-out of Contract Management Services 6 225 R 1 000 278.18 Appointment of service providers from panel of experts for assistance with SCM @ Kwa- Dukuza Municipality 1 17 R 193 600.00 Deployment of temporary @ the KZN department of education 1 6 R 264 480.00 Appointment of service providers from panel of experts for assistance with SCM @ Kwa- Dukuza Municipality 2 17 R 96 800.00 Resources to be deployed @ the dept. of UMtshezi Municipality 1 123 R 807 576.00 To assist the Provincial Treasury with the roll out of contract management services 6 225 R 1 000 278.18 Contract Management pilot project 6 350 R 1 822 877.10 Facilitate the Provision of Mentorship to Tribunal Members, Review Tribunal decision and ensuring quality control 1 126 R 1 966 640.00 Secondment of Temporary staff @ the department of Education 7 126 R 2 271 006.00 To assist the Provincial Treasury with the roll out of contract management services 6 225 R 1 000 278.18 Setting up of MBAT throughout KZN 1 84 R 1 256 583.00 Facilitate the setting up of Municipal BID Complaint Tribunals in all district in KZN 1 365 R 5 034 317.11 Appointment of service providers from panel of experts for assistance with SCM @ Kwa- Dukuza Municipality 1 10 R 96 800.00 Resources to be deployed @ UMkhanyakude Municipality 1 123 R 1 295 632.80 To assist the Provincial Treasury with the roll out of contract management services 6 208 R 902 089.98 Assist the Provincial Treasury with the roll out of Contract Management 6 225 R 1 000 278.18
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 118 -
Services
Resources to be deployed @ UGU district Municipality to provide assistance and support 1 123 R 863 755.00 Deployment of SCM Resources to the department of education 3 126 R 731 880.00 BBBEE verification exercise PHASE1 10 63 R 675 885.00 BBBEE verification exercise PHASE 2 10 168 R 3 519 180.00 Assist the provincial treasury with roll out of contract Management For the dept. of health 11 225 R 1 000 278.18 Assist the Provincial Treasury with the roll out of Contract Management Services for dept of community safety and arts & culture 1 211 R 938 910.56 627 63453.5 R 224 887 386.16
TABLE 13.2 - Analysis of consultants appointments using appropriated funds i.t.o HDIs
Project Title Percentage ownership by HDI groups
Percentage management by
HDI groups
No. Of consulting firms from HDI
groups that work on project
INTERNAL AUDIT
Forensic investigation into the award of the IT contract @ KZN Provincial Treasury 100 100 1
Forensic Investigation into the high fuel consumption fuel @ Dannhauser Municipality 100 100 1
Audit on Public Entities support-Department of Economic development & Tourism 100 100 1
Performance Information and review of consolidated financial statements 2013/2014 KZN Provincial treasury 100 100 1
Performance information @ KZN Provincial Treasury 100 100 1
Testify at DC Hearing of Department of Transport 100 100 1
Resource for forensic investigation @ ILembe district municipality 100 100 1
Audit on subsistence and travel allowance- COGTA 26.75 26.75 1
Seconded to cluster audit & risk committee 26.75 26.75 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 119 -
Consultants for IT Strategy Review 26.75 26.75 1
Resources IT audit of system 26.75 26.75 1
Resources for Compliance Monitoring 26.75 26.75 1
IT application control reviews at various departments and public entities 26.75 26.75 1
Resources for (IAU) forensic Investigation 26.75 26.75 1
AUDIT on SCM Management @ the DEPT of agriculture 26.75 26.75 1
Audit on Asset Management @ DEPT of Education 26.75 26.75 1
Audit on Records Management @ DEPT of education 26.75 26.75 1
Audit on operation Hlasela @ dept of community safety and liaison 26.75 26.75 1
Forensic Investigation: alleged irregularities relating to service providers @ UMzinyathi district municipality 26.75 26.75 1
Internal audit and audit committee performance evaluation for delegated municipalities 26.75 26.75 1
Audit on performance information on DEPT of cooperative Governance & traditional Affairs 26.75 26.75 1
Audit on Supply Chain Management: Trade and Investment KZN 26.75 26.75 1
Request for appropriately qualified & experienced staff to undertake internal audit @ Mjindi farming SCM & human resources management & development 26.75 26.75 1
To conduct an Audit in Year Monitoring @ the KZN Provincial Treasury 26.75 26.75 1
Audit on Supply Chain Management @ the DEPT of Economic Development & Tourism 26.75 26.75 1
A Secondment of resources to perform review IT strategy @ various departments 26.75 26.75 1
Audit on Human Resource Management Royal household Trust 26.75 26.75 1
Audit on Performance Information- Royal household Trust 26.75 26.75 1
Forensic investigation of alleged irregularities @ KZN Depart Of Health relating to SCM care professionals 26.75 26.75 1
Resources for IAU For Forensic Investigation:DEPT Of Community Safety & Liaison 30.75 30.75 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 120 -
Lack of Capacity for forensic Investigation Internal audit 30.75 30.75 1
Audit Review of key financial control department of Transport PHASE 2 30.75 30.75 1
Audit Review of Key Financial control department of Social development PHASE 1 30.75 30.75 1
Secondment of Resources for the audit of performance information of Trade and Investment in KZN 30.75 30.75 1
Secondment of resources to perform review of I.T Strategy @ various department 30.75 30.75 1
Forensic investigation internal Audit 30.75 30.75 1
IT application control reviews at various departments and public entities 30.75 30.75 1
Audit at one home one garden at Department of Agriculture and environmental affairs 30.75 30.75 1
Lack of Capacity for forensic Investigation 100 100 1
Audit Human Resource Management @ KZN Provincial Treasury 100 100 1
Audit Human Resource Management @ KZN Sharks Board 100 100 1
Audit Human Resource Management @ KZN Dept of Economic Development & Tourism 100 100 1
Audit on SCM of Department of Human Settlement 100 100 1
Audit on Performance Information @ DEPT of Social development 100 100 1
Audit on Asset Management @ DEPT of Social development 100 100 1
Audit on Performance information @ the dept. of Economic development 100 100 1
Resources for audit @ department of transport 100 100 1
Resources To Conduct Audit on Performance Information 100 100 1
To Conduct Audit Assets Management DEPT of sport and Recreation 100 100 1
Forensic accounting services is required to attend a DC enquiry 1
Resources to the seconded to dept of Health and Education 25.1 25.1 1
Business process mapping for the revenue fund 25.1 25.1 1 Application Controls Review of the Legit-Mate System for dept of Transport 25.1 25.1 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 121 -
External Service Providers Secondment For Value IT analysis For the Dept of Health 25.1 25.1 1
Forensic Services for KZN Provincial Treasury 25.1 25.1 1
Evaluation of the effectiveness of Internal Audit units and Audit committees @ KZN Municipalities 25.1 25.1 1
Audit on Human Resource Management Royal household Trust 25.1 25.1 1
Forensic services for KZN Provincial Treasury: DEPT of agriculture and Environmental affairs 25.1 25.1 1
Resources needed to conduct an audit on SCM @ DEPT of Public Works 25.1 25.1 1
Resources to perform review of IT strategy @ various departments 25.1 25.1 1
Forensic investigation @ UMkhanyakude District Municipality 25.1 25.1 1
Performance of risk based internal audit project at RBIDZ 25.1 25.1 1
Audit on Performance Information at RHH and RHT 100 100 1
Audit on performance information at Department of Agriculture and Environmental Affairs 100 100 1
Resources needed to conduct an audit on transfer payments @ dept of sports and recreation 100 100 1
Audit on movable assets Learner Transport, SCM and PI @ the department of Transport 100 100 1
Audit on AG follow- up @ the DEPT of Education 100 100 1
Audit on transfer Payments @ the DEPT of Education 100 100 1
Audit on Fleet Management at Department of Education 100 100 1
Audit on Special Schools-Learning Barriers @ the DEPT of Education 100 100 1
Audit on Supply Chain Management @ DEPT of Education 100 100 1
Audit on human Resource Management @ the DEPT Of Education 100 100 1
Audit on Performance information @ the DEPT of Education 100 100 1
Forensic Investigation alleged irregularities relating to information technology & SCM systems:Vulamehlo Local Municipality 100 100 1
Audit Review of key financial control- Office of the Premier 100 100 1
Audit Review of key financial controls dept of economic development 100 100 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 122 -
Forensic Investigation: alleged irregularities @KZN dept of Rural development and land Reform: Payment of the Mangethe land claim to the Bhekafana community trust 100 100 1
Forensic Investigation 100 100 1
Forensic Investigation 100 100 1
Resources for Contractor Performance Management 100 100 1
Forensic investigation into alleged irregularities at KZN DoE for the provision of services relating to borehole drilling and supply of water to schools in UMzimkhulu 100 100 1
IT audit for general controls surrounding the financial and performance management systems 23 23 1
Secondment of Resources for the Review of IT Strategy documents 23 23 1
Resource needed for the Audit of application controls for Depart of Education 23 23 1 Audit on SHEQ- Quality Management Richards bay Industrial development 23 23 1
Resources for Audit on property Management inclusive of housing fund on dept of Human Settlement 23 23 1 Resources audit performances information at the DEPT of Human Settlement 23 23 1
Resources for Audit on Supply Chain Management at the DEPT of Human Settlement 23 23 1
Resources for Audit on transfer payments at DEPT of human settlement 23 23 1
Audit on Network Security Review @ the DEPT of Public Works 23 23 1
Virtual Private network security review @ KZN Provincial Treasury 23 23 1
Secondment of resources to perform review of I.T Strategy @ various department 23 23 1
Review of the Referral system @ DEPT of Health 23 23 1
Forensic investigation into various allegation at Ezemvelo KZN Wildlife: FR 2013 23 23 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 123 -
Forensic investigation into the transfer payment made to non profit organisations by the KZN Department of Social Development, Phase 1:FR/2013 23 23 1
Audit on HRM (OTP) 100 100 1
forensic investigation 100 100 1 Investigation into alleged regular/irregular cancellation of bid ZNT M00526W 100 100 1
Forensic Investigation 100 100 1
Forensic Investigation 100 100 1
Forensic investigation Internal Audit of KZN DoT 100 100 1
Audit on performance information- Human Settlement 100 100 1
Audit on performance information @ Amafa 100 100 1
Audit on research and compliance audit at Amafa 100 100 1
Audit @ dept of Human Settlement 100 100 1
Conduct Performance audit on Infrastructure development, DEPT. of Education, Social Development and Arts and Culture 100 100 1
Audit Review of key financial control department of Community Safety PHASE 2 100 100 1
Audit Review of Key Financial control department of Human settlement for PHASE 1 100 100 1
Development of training material & facilitation of training in all provincial departments 100 100 1 Resource needed to conduct an audit on financial management @ KZN Sharks Board 100 100 1
Investigation of allegations of fraud & corruption related to prepaid electricity: Kwadukuza Local Municipality 100 100 1
Investigation of allegations of irregular payments @ Sisonke district Municipality relating to payments 100 100 1
Investigation into alleged irregular conduct into awarding of a tender - UGu Municipality Regional Bulk Water Scheme 100 100 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 124 -
Audit of disaster management and occupational health and safety at the department of Humana Settlement 100 100 1
Risk Based Audits @ Richards Bay Industrial Development 100 100 1
Forensic Investigation: ILembe district Municipality 100 100 1
Forensic Investigation: UGu District Municipality 100 100 1
Forensic Investigation Into alleged irregularities @ Dannhauser Local Municipality 100 100 1
Forensic Investigation Into alleged irregularities @ UThukela district Municipality 100 100 1
Forensic investigation 100 100 1
Conduct an Audit on Early Childhood Development Programme @ dept of Education 75.2 75.2 1
Review of application controls and security reviews of the biometric access control management system 75.2 75.2 1
Resources for audit on performance information at dept. of Health 75.2 75.2 1
Audit on SCM @ the DEPT of Arts and Culture 75.2 75.2 1
Audit on Transfer Payments @ the DEPT Arts and Culture 75.2 75.2 1
To conduct an audit AG follow up @ department of sport & Recreation 75.2 75.2 1 To conduct an audit on Transfer payment @ the dept. of sports & recreation 75.2 75.2 1 Conduct an Audit on Supply Chain Management @ the dept. of sport & Recreation 75.2 75.2 1
Audit on performance information @ the dept. of Sports & Recreation 75.2 75.2 1
Appointment of External service providers for performance of Internal audits @ the KZN Provincial Treasury 75.2 75.2 1
Audit on transfer payments @ DEPT of Health 75.2 75.2 1
Audit on Asset Management @ DEPT of Health 75.2 75.2 1
Audit on performance INFO: Trade and Investment KZN 75.2 75.2 1
Audit on supply chain management DEPT OF COGTA 75.2 75.2 1
Addendum- Professional Forensic investigation services: Alleged irregularities pertaining to UMzimkhulu Project: Sisonke District 75.2 75.2 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 125 -
Municipality
Professional Forensic Investigation : Alleged irregularities pertaining to various project KZNDEDT 75.2 75.2 1
Investigation on fraud and corruption relating to information technology solution project in the Office of the Premier KZN 100 100 1
Audit on research and compliance audit at Amafa 100 100 1
Audit on tourism development Audit at KZN Tourism 100 100 1
forensic investigation 100 100 1
SCM Audit @ KZN Natal-Liquor Authority Panel- 100 100 1
Audit on AG follow- up KZN Liquor authority 100 100 1
Audit on review of key financial controls @ KZN Liquor authority 100 100 1
Audit on Performance information @ KZN Liquor authority 100 100 1
Audit on Inspection & compliance @ KZN Liquor authority 100 100 1 Audit Review of KEY Financial controls @ the DEPT of Education PHASE 1 100 100 1 Audit Review of KEY Financial controls @ the DEPT of Agriculture PHASE 2 100 100 1
To perform quality assurance on internal audit and audit committee performance evaluation 100 100 1
Resources needed to conduct audits an interim financial statements 100 100 1
Audit on administrative management audit @ KZN Liquor Authority 100 100 1
AFS Review for KZN Department and public entities. 100 100 1
Forensic Investigation 100 100 1
Forensic Investigation 100 100 1
PEFORMANCE AUDIT ON TRAVEL & TRAVEL SUBSISTENCE CLAIMS CONDUCTED KZN 100 100 1
MSP-Secondment of Resource to KZN Provincial Treasury 100 100 1
Municipal Support Program -Review of Value added Tax (VAT) Returns and Processes 100 100 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 126 -
Municipal support program -VAT Review (amounts Incl. VAT and disbursements UMtshezi and Municipality 100 100 1
MSP Review of value added TAX (VAT) 1
Municipal Support Program -UGU district Municipality 1
Internal control enhancement- Mtubatuba Municipality 26.75 26.75 1
Municipal support program-VAT Review :Newcastle Municipality 26.75 26.75 1
Municipal support program-VAT UMgungundlovu 26.75 26.75 1
MSP-Secondment of resource to KZN Provincial Treasury 26.75 26.75 1
Cash Flow Management- UGu District Municipality 30.75 30.75 1
Cash Flow Management- UGu District Municipality 30.75 30.75 1
Cash Flow Management- Sisonke District Municipality 30.75 30.75 1
MSP Control Enhancement-UMzinyathi District Municipality 30.75 30.75 1
MSP Control Enhancement-Sisonke District Municipality 30.75 30.75 1
MSP Control Enhancement-Greater Kokstad Municipality 30.75 30.75 1
MSP: Internal control Enhancement Richmond municipality 30.75 30.75 1
MSP-Indaka 30.75 30.75 1
Cash flow management- Greater Kokstad Municipality 30.75 30.75 1
Municipal Finance Support Mbalenhle E Khubone @ 300 per hour 100 100 1
MSP-Secondment of resource to KZN Provincial Treasury 100 100 1
Municipal support program (MSP)-Secondment of Resource to KZN Provincial Treasury Municipal finance 100 100 1
Municipal Support program secondment of Resource to KZN Provincial treasury (MFU) 100 100 1
MSP-Secondment of resource to KZN Provincial Treasury 100 100 1
Cash Flow Management- eDumbe Municipality 25.1 25.1 1
MSP-Secondment of resource to KZN Provincial Treasury 25.1 25.1 1 Resources for KZN Provincial MSP-Secondment of Resources for Municipal 25.1 25.1 1
MSP-Review of value added Tax (VAT) Returns and Processes 25.1 25.1 1
MSP-Review of value added Tax (VAT) Returns and Processes 25.1 25.1 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 127 -
Municipal Support program secondment of Resource to KZN Provincial treasury (MFU) 25.1 25.1 1
Cash flow management- AbaQulusi Municipality 25.1 25.1 1
Internal Control enhancement- eDumbe Municipality 23 23 1
Internal control enhancement- Jozini Municipality 23 23 1
Internal Control Enhancement-Abaqulusi Municipality 23 23 1
MSP-Review of value added Tax (VAT) Returns and Processes 23 23 1
MSP-Review of value added Tax (VAT) Returns and Processes 23 23 1
Internal control enhancement- Hlabisa Municipality 23 23 1
Internal control enhancement- Umhlabuyalingana Municipality 23 23 1
MSP- secondment of resources at KZN Provincial Treasury 100 100 1 Resources for KZN Provincial MSP-Secondment of Resources for Municipal 100 100 1
MSP-Secondment of resource to Mtubatuba Municipality 100 100 1
Cash flow management- Greater Kokstad Municipality 72.5 72.5 1
Cash flow management- AbaQulusi Municipality 72.5 72.5 1
Cash flow management- Hlabisa Municipality 72.5 72.5 1
Cash Flow Management-Mtubatuba Municipality 100 100 1
Cash Flow Management-Big 5 False Bay Municipality 100 100 1
Cash flow management-Hlabisa Municipality 100 100 1 Resources for KZN Provincial MSP-Secondment of Resources for Municipal 100 100 1
Municipal support programme secondment of resource to KZN Provincial Treasury 100 100 1
MSP-Secondment of resource to KZN Provincial Treasury 100 100 1
MSP-Secondment of resource to KZN Provincial Treasury 100 100 1
Education Capped Leave Validation Project 2013/14 0 0 1
Recruitment of resources from the financial management panel for the assistance with the dept. of Health movable asset register 0 0 1
Dept of education capped leave validation project 0 0 1
GRAP training programme 0 0 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 128 -
Resource for KZN Provincial Treasury GRAP Training 0 0 1
Resource on the Dept AFS Projects KZN Treasury 0 0 1
Assistance with the Department of Health Movable Assets Register (Extension of contract 2013/2014) 0 0 1
Irregular Expenditure Project 100 100 1
Department of Health year end processes verification project: 2012/2013 100 100 1
Resource for Municipal Debt Project-2013/14 financial year 100 100 1
recruitment of resources from the financial management panel for the assistance with the dept. of Health movable asset register 2013/2014 100 100 1
Resource on DOE capped leave validation project 2013/14 FY- Phase 3 100 100 1
Dept of education capped leave validation project 100 100 1
Reconciliation of accommodation & travel expenses 100 100 1
Resource on the department of public works Immovable assets 2014/15 financial year 100 100 1
Movable assets project-Dept of Public works 100 100 1
AFS preparation for Endumeni Municipality 2012/13 100 100 1
KZN Department of Health year end processes verification project: 2012/12 financial year 100 100 1
Department of Health Project 100 100 1
Resource on the AFS preparation for Umngeni Municipality 100 100 1
Resource on Municipal DEBT Project:2013/14 Financial Year 100 100 1
Recruitment of resources from the financial management panel for the assistance with the department of health movable asset register 100 100 1
Reconciliation of accommodation & travel expenses 100 100 1
Department of Health year end processes verification project: 2012/2013 100 100 1
Preparation of AFS and updating the assets register for Endumeni Municipality 100 100 1
Department of Health year end processes verification project: 2012/2013 100 100 1
Education Capped Leave Validation 26.75 26.75 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 129 -
Recruitment of resources from the financial management panel for the assistance with the department of health movable asset register 2013/2014 26.75 26.75 1
Review of the internal control functions @ the department of health and education 26.75 26.75 1
Resource on DOE capped leave validation project 2013/14 FY- Phase 3 26.75 26.75 1
Dept of education capped leave validation project 26.75 26.75 1
Resource to conduct the review of the annual financial (Umhlabuyalingana& UMkhanyakude Municipality) 26.75 26.75 1
Resource on the department of public works Immovable assets 2014/15 financial year 26.75 26.75 1
Resource for Municipal Debt Project-2013/14 financial year 100 100 1
Irregular Expenditure Project 100 100 1
Public Works for Immovable Assets 100 100 1
Resources on DEPT of education capped leave validation project 2013/14 100 100 1
Resources on the Review of the annual Financial Statements and technical support in identified municipalities:2012/13 financial year 100 100 1
Resources on DEPT of health Movable assets project:2013/14 financial 100 100 1
Recruitment of resources from the Financial management panel for the assistance with the department of health movable asset register 100 100 1
Investigation @ department of health by McCord Hospital 100 100 1
Conditional grant project 100 100 1
Irregular Expenditure Project 100 100 1
Department of Health year end processes verification project: 2012/2013 100 100 1
Resource to Conduct the review of AFS & Technical support:2012/13 100 100 1
Resource for Municipal Debt Project-2013/14 financial year 100 100 1
Recruitment of resources from the financial management panel for the assistance with the department of health movable asset register 100 100 1
Reconciliation of accommodation & travel expenses 100 100 1
Resource on the department of public works Immovable assets 2014/15 financial year 100 100 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 130 -
Resource on the Dept AFS Projects KZN Treasury 100 100 1
KZN Department of Health year end processes verification project: 2012/12 financial year 100 100 1
Irregular Expenditure Project 23 23 1
Resource to conduct the review of the annual financial (Ingwe, Kwadukuza&Ntambanana Municipality) 23 23 1
Education leave validation project 2013/14 23 23 1
Recruitment of resources from the financial management panel for the assistance with the dept. of Health movable asset register 23 23 1
Resource on DOE capped leave validation project 2013/14 FY- Phase 3 23 23 1
The KZN department of education capped leave validation project 2013/2014 financial year -Phase 3 23 23 1
AFS preparation and updating asset register Umgeni municipality 23 23 1
Movable assets project-Dept of Public works 23 23 1
Irregular Expenditure Project 100 100 1
Resource for Municipal Debt Project-2013/14 financial year 23 23 1
Resource on DOE capped leave validation project 2013/14 FY- Phase 3 100 100 1
Recruitment of resources from the financial Management Panel for the assistance with the department of Health movable asset register 100 100 1
Resource on the Dept. of Education Capped leave project 100 100 1
Dept of education capped leave validation project 100 100 1
Resource on the department of public works Immovable assets 2014/15 financial year 100 100 1
AFS preparation for Endumeni Municipality 2012/13 (Extension of contract 2013/2014) 100 100 1
Investigation @ Depart of Health by McCord hospital 100 100 1 Resource on the department of Sport & Recreation UMgungundlovu Academy of Sport Verification project 100 100 1
Ndumo Regeneration project and programme management support 100 100 1
Ndumo Regeneration project 100 100 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 131 -
Municipal Infrastructure Crack Team Deployment 100 100 1
Deployment of resources assist in problematic projects :Education 100 100 1
Crack team- Municipal Finance Support 0 0 1
Municipal Infrastructure Crack Team Deployment 0 0 1
Deployment: Department of Education and COGTA 100 100 1
Crack team- Nongoma Municipality extension 100 100 1
Resources to assist Ndumo Social Facilitation: KZN 100 100 1 Crack team- To assist municipalities in the delivery of infrastructure for new & existing infrastructure assets within the Province of KZN Natal 2014 100 100 1
Crack team- PPP Unit Assistant 0 0 1
Resources for infrastructure asset evaluation and maintenance in Ezemvelo KZN wildlife 0 0 1
Improvement of Municipal service Delivery and improved planning 0 0 1
Improvement of Municipal service Delivery and improved planning 0 0 1
Support for the department of Human Settlement 0 0 1 To assist municipalities in the delivery of infrastructure for new & existing infrastructure assets within the Province of KZN Natal 2014 0 0 1
Crack team- Municipal Finance Support 0 0 1
Crack Team-Public works Final account 0 0 1
Deployment of resources assist in problematic projects :Education 0 0 1
Support for the department of Human Settlement 31.3 31.3 1
Undertaking of needs analysis-KZN Department of Education school and offices accommodation 31.3 31.3 1
Crack team- Department of Agriculture 31.3 31.3 1
Crack team deployed to assist McCord’s Hospital 31.3 31.3 1 To assist municipalities in the delivery of infrastructure for new & existing infrastructure assets within the Province of KZN Natal 2014 34.79 34.79 1 Assist the Provincial Treasury with the roll out of Contract Management Services 100 100 1
Contract Management pilot project 26.75 26.75 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 132 -
To assist the Provincial Treasury with the roll out of contract management services 26.75 26.75 1
Phase -3 Contract Management, Pilot Project 100 100 1
Secondment of Temporary staff @ the department of Education 100 100 1
Secondment of resources to support the department of agriculture 100 100 1 To assist the Provincial Treasury with the roll out of contract management services 100 100 1
Contract Management pilot project 100 100 1 Additional as part of the MSP Program for support in SCM in UThukela District Municipality 100 100 1 To assist the Provincial Treasury with the roll out of contract management services 30.75 30.75 1
Phase -3 Contract Management, Pilot Project 100 100 1 Assist the Provincial Treasury with roll out of contract Management For DEDT, OTP & Royal household 100 100 1
Contract Management pilot project 100 100 1 Appointment of a panel of service providers to assist the Provincial Treasury with the roll-out of Contract Management Services 25.1 25.1 1 Appointment of service providers from panel of experts for assistance with SCM @ Kwa- Dukuza Municipality 100 100 1
Deployment of temporary @ the KZN department of education 100 100 1 Appointment of service providers from panel of experts for assistance with SCM @ Kwa- Dukuza Municipality 100 100 1
Contract Management pilot project 23 23 1
Resources to be deployed @ the dept. of UMtshezi Municipality 23 23 1 To assist the Provincial Treasury with the roll out of contract management services 23 23 1 Facilitate the Provision of Mentorship to Tribunal Members, Review Tribunal decision and ensuring quality control 100 100 1
Secondment of Temporary staff @ the department of Education 100 100 1 To assist the Provincial Treasury with the roll out of contract management services 100 100 1
Setting up of MBAT throughout KZN 100 100 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 133 -
Facilitate the setting up of Municipal BID Complaint Tribunals in all district in KZN 100 100 1 Appointment of service providers from panel of experts for assistance with SCM @ Kwa- Dukuza Municipality 100 100 1
Resources to be deployed @ UMkhanyakude Municipality 100 100 1 To assist the Provincial Treasury with the roll out of contract management services 100 100 1 Assist the Provincial Treasury with the roll out of Contract Management Services 25.5 25.5 1
Resources to be deployed @ UGU district Municipality to provide assistance and support 1
Deployment of SCM Resources to the department of education 72.5 72.5 1
BBBEE verification exercise 100 100 1
BBBEE verification exercise PHASE 2 100 100 1 Assist the provincial treasury with roll out of contract Management For the dept. of health 100 100 1 Assist the Provincial Treasury with the roll out of Contract Management Services for dept of community safety and arts & culture 0 0 1
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 134 -
Appropriation per programme
2013/14 2012/13
Adjusted
Appropriation
Shifting of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure
as % of
final
appropriation
Final
Appropriation
Actual
Expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
1. Administration
Current payment 106, 302 (909) 105, 393 91,313 14,080 86.6% 95.221 87,231 Transfers and subsidies 4,093 971 5,064 3,526 1,538 69.6% 12.236 9,005 Payment for capital assets 2,586 2,586 2,072 514 80.1% 1.680 1,669 Payment for financial assets 21 21 21 100.0%
112,981 83 113,064 96,932 16,132 109.137 97,905 2. Fiscal Resource
Management
Current payment 101,707 (203) 101,504 90,509 10,995 89.2% 94,846 76,716 Transfers and subsidies 14 54 68 66 2 97.1% 24 23 Payment for capital assets 620 620 426 194 68.7% 138 131 Payment for financial assets 203 203 203 100.0%
102,341 54 102,395 91,204 11,191 95,008 76,870 3. Financial Management
Current payment 264,480 (192) 264,288 237,359 26,929 89.8% 226,311 207,790 Transfers and subsidies 1,274 (162) 1,112 492 620 44.2% 1,317 555 Payment for capital assets 3,494 3,494 2,944 550 84.3% 3,751 3,749 Payment for financial assets 192 192 192 100.0%
269,248 (162) 269,086 240,987 28,099 231,379 212,094 Subtotal
TOTAL
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 135 -
Appropriation per programme
2013/14 2012/13
Adjusted Appropriation
Shifting of Funds
Virement Final Appropriation
Actual Expenditure
Variance Expenditure as % of
final
appropriation
Final Appropriation
Actual Expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
4. Internal Audit
Current payment 108,729 (1) 108,728 106,710 2,018 98.1% 106,159 92,760 Transfers and subsidies 97 25 122 121 1 99.2% 29 29 Payment for capital assets 730 730 531 199 72.7% 364 352 Payment for financial assets 1 1 1 100.0% 14 13
109,556 25 109,581 107,363 2,218 106,566 93,154 5. Growth and Development
Current payment 20,091 20,091 19,970 121 99.4% 16,282 10,305 Transfers and subsidies 39,754 39,754 21,085 18,669 53.0% 54,863 28,012 Payment for capital assets Payment for financial assets
59,845 59,845 41,055 18,790 71,145 38,317 TOTAL 653,971 653,971 577,541 76,430 88.3% 613,235 518,340
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 136 -
2013/14 2012/13 Final
Appropriation
Actual
Expenditure
Final
Appropriation
Actual
Expenditure
TOTAL (brought forward)
Reconciliation with statement of financial performa nce
ADD
Departmental receipts 49,814 45,343
Aid assistance
Actual amounts per statement of financial performan ce (total revenue) 703,785 658, 578
ADD
Aid assistance
Prior year unauthorised expenditure approved without funding
Actual amounts per statement of financial performan ce (total expenditure) 577,541 518,340
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 137 -
Appropriation per economic classification
2013/14 2012/13
Adjusted Appropriation
Shifting of Funds
Virement Final Appropriation
Actual Expenditure
Variance Expenditure
as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments
Compensation of employees 208,333 (6,185) 202,148 185,326 16,822 91.7% 183,479 163,560
Goods and services 390,268 4,880 395,148 360,536 34,612 91.2% 351,040 311,242
Interest and rent on land 2,708 2,708 2,708 4,300
Transfers and subsidies
Provinces and municipalities 39,774 886 40,660 21,982 18,678 54.1% 54,877 28,026
Departmental agencies and accounts 2 2 1 1 50.0%
Households 5,458 5,458 3,306 2,152 60.6% 13,592 9,598
Gifts and donations
Payments for capital assets
Machinery and equipment 7,430 7,430 5,973 1,457 80.4% 5,539 5,507
Intangible assets 394 394
Payments for financial assets 417 417 417 100.0% 14 13
Total 653,971 653,971 577,541 76,430 88.3% 613,235 518,340
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 138 -
2013/14 2012/13
Detail per sub-programme Adjusted
Appropriation
Shifting of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure
as % of final appropriation
Final
Appropriation
Actual
expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
1.1 Office of the MEC
Current payment 26,222 (1,189) 25,033 22,130 2,903 88.4% 21,921 21,902
Transfers and subsidies 733 733 733 100.0%
Payment for capital assets 942 942 602 340 63.9% 780 778
Payment for financial assets
1.2 Head of the Department
Current payment 8,615 (220) 8,395 6,450 1,945 76.8% 7,710 6,722
Transfers and subsidies 8 162 170 170 100.0%
Payment for capital assets 134 134 40 94 29.9% 95 86
Payment for financial assets 9 9 9 100.0%
1.3 Chief Financial Office
Current payment 24,614 24,614 17,348 7,266 70.5% 17,898 13,296
Transfers and subsidies 7 3 10 10 100.0% 367 361
Payment for capital assets 150 150 83 67 55.3% 73 73
Payment for financial assets
Total
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 139 -
2013/14 2012/13
Detail per sub-programme Adjusted Appropriation
Shifting of Funds
Virement Final Appropriation
Actual Expenditure
Variance Expenditure as % of final
appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
1.4Corporate Services
Current payment 46,851 500 47,351 45,385 1,966 95.8% 47,692 45,311
Transfers and subsidies 4,078 73 4,151 2,613 1,538 62.9% 11,869 8,644
Payment for capital assets 1,360 1,360 1,347 13 99.0% 732 732
Payment for financial assets 12 12 12 100.0%
Total 112,981 83 113,064 96,932 16,132 85.7% 109,137 97,905
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 140 -
2013/14 2012/13
Economic classification Adjusted Appropriation
Shifting of Funds
Virement Final Appropriation
Actual Expenditure
Variance Expenditure
as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments
Compensation of employees 56,386 (483) 55,903 49,660 6,243 88.8% 46,142 43,905
Goods and services 49,916 (426) 49,490 41,653 7,837 84.2% 49,079 43,327
Interest and rent on land
Transfers and subsidies to:
Provinces and municipalities 20 886 906 897 9 99.0% 14 14
Departmental agencies and accounts
2 2 1 1 50.0%
Households 4,073 83 4,156 2,627 1, 529 63.2% 12,222 8,990
Gifts and donations
Payment for capital assets
Machinery and equipment 2,586 2,586 2,073 513 80.2% 1,680 1,669
Intangible assets
Payments for financial assets 21 21 21 100.0%
Total 112,981 83 113,064 96,932 16,132 85.7% 109,137 97,905
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 141 -
2013/14 2012/13
Detail per sub-programme Adjusted Appropriation
Shifting of Funds
Virement Final Appropriation
Actual Expenditure
Variance Expenditure as % of final
appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
2.1 Programme Support
Current payment 2,845 2,845 1,767 1,078 62.1% 1,220 751
Transfers and subsidies
Payment for capital assets 82 82 58 24 70.7% 6
Payment for financial assets
2.2 Economic Analysis 3,006 38,079 37,505 574 98.5%
Current payment 35,073 2 2 1 1 50.0% 27,458 19,489
Transfers and subsidies 38 35 3 92.1%
Payment for capital assets 38 3 3 3 100.0% 11 10
Payment for financial assets
2.3 Public Finance 12,663 10,298 2,365 81.3%
Current payment 12,663 10 9 1 90.0% 11,991 9,708
Transfers and subsidies 10 48 40 8 83.3%
Payment for capital assets 48 31 31
Payment for financial assets
Total
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 142 -
2013/14 2012/13
Detail per sub-programme Adjusted
Appropriation
Shifting of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure
as % of final appropriation
Final
Appropriation
Actual
expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
2.4Municipal Finance
Current payment 51,126 (3,209) 47,917 40,939 6,978 85.4% 54,177 46,768
Transfers and subsidies 4 52 56 56 100.0% 24 23
Payment for capital assets 452 452 293 159 64.8% 90 90
Payment for financial assets 200 200 200 100.0%
Total 102,341 54 102,395 91,204 11,191 89.1% 95,008 76,870
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 143 -
2013/14 2012/13
Economic classification Adjusted Appropriation
Shifting of Funds
Virement Final Appropriation
Actual Expenditure
Variance Expenditure
as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments
Compensation of employees 41,104 41,104 37,038 4,066 90.1% 36,785 30,283
Goods and services 60,603 (203) 60,400 53,472 6,928 88.5% 58,061 46,433
Interest and rent on land
Transfers and subsidies to:
Provinces and municipalities
Households 14 54 68 66 2 97.1% 24 23
Gifts and donations
Payment for capital assets
Machinery and equipment 620 620 425 195 68.5% 138 131
Intangible assets
Payments for financial assets 203 203 203 100.0%
Total 102,341 54 102,395 91,204 11,191 89.1% 95,008 76,870
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 144 -
2013/14 2012/13
Detail per sub-programme Adjusted
Appropriation
Shifting of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure
as % of final appropriation
Final
Appropriation
Actual
expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
3.1Financial Assets and Liability Management
Current payment 19,756 (4) 19,752 14,853 4,899 75.2% 20,039 14,081
Transfers and subsidies 1,239 (187) 1,052 432 620 41.1% 1,266 506
Payment for capital assets 164 (64) 100 29 71 29.0%
Payment for financial assets 4 4 4 100.0%
3.2Public, Private Partnerships (PPP’s)
Current payment 7,108 7,108 5,171 1,937 72.7% 3,422 3,184
Transfers and subsidies
Payment for capital assets 50 17 67 67 100.0% 67 67
Payment for financial assets
3.3 Supply Chain Management (SCM)
Current payment 57,182 263 57,445 43,030 14,415 74.9% 51,621 41,436
Transfers and subsidies 33 33 33 100.0% 43 42
Payment for capital assets 210 47 257 257 100.0% 190 189
Payment for financial assets 13 13 13 100.0%
Total
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 145 -
2013/14 2012/13
Detail per sub-programme Adjusted
Appropriation
Shifting of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure
as % of final appropriation
Final
Appropriation
Actual
expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
3.4Financial Reporting
Current payment 57,954 (171) 57,783 54,606 3,177 94.5% 32,509 31,536
Transfers and subsidies 2 25 27 27 100.0% 8 7
Payment for capital assets 56 56 36 20 64.3% 188 188
Payment for financial assets 171 171 171 100.0%
3.5Norms and Standards
Current payment 4,962 (276) 4,686 3,764 922 80.3% 4,541 3,533
Transfers and subsidies
Payment for capital assets 54 54 12 42 22.2% 11 10
Payment for financial assets
3.6Support and interlinked Financial Systems
Current payment 117,518 (4) 117,514 115,935 1,579 98.7% 114,179 114,020
Transfers and subsidies
Payment for capital assets 2,960 2,960 2,543 417 85.9% 3,295 3,295
Payment for financial assets 4 4 4 100.0%
Total 269,248 (162) 269,086 240,987 28,099 89.6% 231,379 212,094
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 146 -
2013/14 2012/13
Economic classification Adjusted Appropriation
Shifting of Funds
Virement Final Appropriation
Actual Expenditure
Variance Expenditure
as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments
Compensation of employees 53,945 53,945 49,299 4,646 91.4% 48,482 43,035
Goods and services 207,827 (192) 207,635 188,060 19,575 90.6% 173,529 164,754
Interest and rent on land 2,708 2,708 2,708 4,300
Transfers and subsidies to:
Provinces and municipalities
Households 1,274 (162) 1,112 492 620 44.2% 1,317 556
Gifts and donations
Payment for capital assets
Machinery and equipment 3,494 3,494 2,944 550 84.3% 3,357 3,355
Intangible assets 394 394
Payments for financial assets 192 192 192 100.0%
Total 269,248 (162) 269,086 240,987 28,099 89.6% 231,379 212,094
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 147 -
2013/14 2012/13
Detail per sub-programme Adjusted
Appropriation
Shifting of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure
as % of final appropriation
Final
Appropriation
Actual
expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
4.1 Assurance Services
Current payment 57,033 1,702 58,735 58,608 127 99.8% 59,579 53,715
Transfers and subsidies 35 2 37 36 1 97.3% 29 29
Payment for capital assets 480 480 389 91 81.0% 304 293
Payment for financial assets 1 1 1 100.0% 14 13
4.2 Risk Management
Current payment 51,696 (1,703) 49,993 48,102 1,891 96.2% 46,580 39,045
Transfers and subsidies 62 23 85 85 100.0%
Payment for capital assets 250 250 142 108 56.8% 60 59
Payment for financial assets
Total 109,556 25 109,581 107,363 2,218 98.0% 106,566 93,154
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 148 -
2013/14 2012/13
Economic classification Adjusted Appropriation
Shifting of Funds
Virement Final Appropriation
Actual Expenditure
Variance Expenditure
as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments
Compensation of employees 56,898 (5,702) 51,196 49,329 1,867 96.4% 52,070 46,337
Goods and services 51,831 5,701 57,532 57,381 151 99.7% 54,089 46,423
Interest and rent on land
Transfers and subsidies to:
Provinces and municipalities
Households 97 25 122 121 1 99.2% 29 29
Gifts and donations
Payment for capital assets
Machinery and equipment 730 730 531 199 72.7% 364 352
Intangible assets
Payments for financial assets 1 1 1 100.0% 14 13
Total 109,556 25 109,581 107,363 2,218 98.0% 106,566 93,154
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 149 -
2013/14 2012/13
Detail per sub-programme Adjusted
Appropriation
Shifting of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure
as % of final appropriation
Final
Appropriation
Actual
expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
5.1 Budget Communication
Current payment 7,464 7,464 7,456 8 99.9% 7,094 6,032
Transfers and subsidies
Payment for capital assets
Payment for financial assets
5.2Special Infrastructure Projects
Current payment 7,188 2,273
Transfers and subsidies 39,754 39,754 21,085 18,669 53.0% 54,863 28,012
Payment for capital assets
Payment for financial assets
5.3 Strategic Cabinet Initiatives
Current payment
Transfers and subsidies
Payment for capital assets
Payment for financial assets
Total
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 150 -
2013/14 2012/13
Detail per sub-programme Adjusted
Appropriation
Shifting of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure
as % of final appropriation
Final
Appropriation
Actual
expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
5.4Special Projects
Current payment 12,627 12,627 12,514 113 99.1% 2,000 2,000
Transfers and subsidies
Payment for capital assets
Payment for financial assets
Total 59,845 59,845 41,055 18,790 68.6% 71,145 38,317
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 151 -
2013/14 2012/13
Economic classification Adjusted Appropriation
Shifting of Funds
Virement Final Appropriation
Actual Expenditure
Variance Expenditure
as % of final appropriation
Final Appropriation
Actual expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments
Compensation of employees
Goods and services 20,091 20,091 19,970 121 99.4% 16,282 10,305
Interest and rent on land
Transfers and subsidies to:
Provinces and municipalities 39,754 39,754 21,085 18,669 53.0% 54,863 28,012
Households
Gifts and donations
Payment for capital assets
Machinery and equipment
Intangible assets
Payments for financial assets
Total 59,845 59,845 41,055 18,790 68.6% 71,145 38,317
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 152 -
1. Detail of transfers and subsidies as per Appropr iation Act (after Virement):
Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-H) to the Annual Financial Statements.
2. Detail of specifically and exclusively appropria ted 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 Virement): 4.1 Per programme Final
Appropriation Actual
Expenditure Variance
R’000 Variance as a
% of Final Appropriation
Administration 113,064 96,932 16,132 14,27%
• Programme 1: Administration (under-spending)
- Compensation of employees are as a result of non-filling of funded vacant posts.
- Goods and services are due to costs relating to advertising; legal fees that were anticipated to be paid during 2013/14 financial year; travel and subsistence due to cost cutting measures and delay in the spending on Operation Sukuma Sakhe Project as the funds were only received during the budget adjustment estimates period.
- Transfers to households are as a result of delay in the process of selection of students for the Thuthuka Bursary as the process is not controlled by the Department, as a result only 50% of the budget was spent.
- Machinery and Equipment are as a result of cost cutting measures and delays in staff appointments due to shortage of skills
Fiscal Resource Management 102,395 91,204 11,191 10.93%
• Programme 2: Fiscal Resource Management (under-sp ending)
- Compensation of employees is mainly due to the non-filling of funded vacant posts and difficulty in finding suitably qualified candidates, as well as the fact that a number of key posts such as the Senior General Manager’s remained vacant during the first half of the year and only remained filled for 3 months and became vacant again during the last 3 months before the end of the financial year.
- Goods and Services relates to problems experienced with orders that were issued to some of the service providers to commence work, where the actual deliverables were unsatisfactory and payment was withheld. This poor performance impacted on the issue of subsequent orders, and the slow
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 153 -
processing of invoices.
Financial Management 269,086 240,987 28,099 10.44%
• Programme 3: Financial Management (under-spending )
- Compensation of employees is mainly due to the delays in the filling of budgeted vacant posts.
- Goods and services is as a result of the delayed process for the appointment of service providers for the E-Procurement Tool; delays in the finalisation of the project for Mc Cord Hospital; delays in obtaining dates for the GRAP Training with the Municipalities; Health Asset Project due to the late completion of the project that was only in 31/03/2014; Education Capped leave project and also due to the unused allocation for interest on overdraft attributed to the improvement in the funds available in the Paymaster General Account/IGCC account resulting in the province earning interest as opposed to paying it.
Internal Audit 109,581 107,363 2,218 2,02%
• Programme 4: Internal Audit (savings)
- This programme has spent 98% of its allocated budget. The remaining savings are emanating from compensation of employees.
Growth and Development 59,845 41,055 18,790 31.40%
• Programme 5: Other Development Initiatives (under -spending)
- The under-expenditure is in respect of the development of the Light Industrial Park at Bhongweni as a result of slow process in appointing the service provider for the professional team members, due to the fact that the Municipal Tender Committee was not available over the Christmas Holiday to make appointment of the contractor which resulted in the delays of the commencement of this project.
- Furthermore, the construction of the Shayamoya Eco-Tourism Park could not be completed in the 2013/14 financial year due to the tender prices that were above the allocated budget for this project and the specifications had to be revised and prices negotiated with the contractors caused a delay in the commencement of the project.
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 202,148 185,326 16,822 8.32% Goods and services 395,148 360,536 34,612 8.76% Interest and rent on land 2,708 2,708 100.00%
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 154 -
Transfers and subsidies
Provinces and municipalities 40,660 21,982 18,678 45.94% Departmental agencies and accounts
2 1 1 50.00%
Households 5,458 3,306 2,152 39.43% Gifts and donations
Payments for capital assets Machinery and equipment 7,430 5,973 1,475 19.61% Payments for financial assets 417 417
. Compensation of employees was under-spent by R16,8 million due to delays in the filling of vacant funded posts resulting from delays by the DPSA, staff turnover, difficulty in finding suitably qualified candidates, and a lack of office accommodation, as explained previously.
• Goods and services reflects under-expenditure of R34,6 million due to the following:
o Lower than anticipated audit costs.
o Savings from travel and subsistence as a result of stringent cost-cutting.
o Unsatisfactory work done by service providers within the MSP, which led to payments being withheld for orders already issued.
o Delays in the appointment of a service provider for the e-Procurement Tool.
o Delays in discussions with board members in respect of the McCord Hospital (as detailed below).
o Delays in the obtaining of dates for the GRAP training with municipalities.
o The late receipt of invoices from service providers dealing with the Health Asset Register and the Education capped-leave project.
• The saving against Current payments: Other of R2.7 million relates to an improvement in the funds available in the PMG and IGCC account, resulting in no interest having to be paid by the province.
• Transfers and subsidies:
o Provinces and municipalities reflect under-spending of R18.7 million resulting from delays in spending in respect of the light industrial park at Bhongweni and the Shayamoya eco-complex. The former of which was due to delays in appointing a service provider (as explained above). The delays in the Shayamoya eco-complex resulted from tender prices being above the allocated budget for this project, as previously mentioned.
o Households was under-spent at year-end by R2.1 million mainly due a delay in the selection process regarding students for the Thuthuka Bursary Fund, as explained previously.
• Machinery and equipment
o Machinery and equipment was under-spent at year-end by R1.5 million resulting from delays in the non-filling of posts and cost-cutting.
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 155 -
Note 2013/14 2012/13 R'000 R'000 REVENUE
Annual appropriation 1 653,971 613,235 Departmental revenue 2 49,814 45,343 TOTAL REVENUE 703,785 658,578 EXPENDITURE
Current expenditure Compensation of employees 3 185,326 163,560 Goods and services 4 360,535 311,242 Total current expenditure 545,861 474,802 Transfers and subsidies Transfers and subsidies 6 25,290 37,624 Total transfers and subsidies 25,290 37,624 Expenditure for capital assets Tangible assets 7.1 5,973 5,507 Intangible assets 7.2 394 Total expenditure for capital assets 5,973 5,901 Payments for financial assets 5 417 13 TOTAL EXPENDITURE 577,541 518,340 SURPLUS/(DEFICIT) FOR THE YEAR 126,244 140,238
Reconciliation of Net Surplus/(Deficit) for the yea r
Voted funds 76,430 94,895 Annual appropriation 76,430 94,895
Departmental revenue and NRF Receipts 12 49,814 45,343 SURPLUS/(DEFICIT) FOR THE YEAR 126,244 140,238
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2014
KZN Provincial Treasury Annual Report - 156 -
Note 2013/14 2012/13 R'000 R'000 ASSETS
Current assets
1,900 15,854
Cash and cash equivalents 8 4 13,027 Prepayments and advances 9 48 8 Receivables 10 1,848 2,819
TOTAL ASSETS 1,900 15,854 LIABILITIES
Current liabilities
959 14,918
Voted funds to be surrendered to the Revenue Fund 11 (3,570) 14,895 Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund
12 4,397 20
Bank overdraft 13 64 Payables 14 68 3
TOTAL LIABILITIES 959 14,918 NET ASSETS 941 936
Note 2013/14 2012/13 R'000 R'000 Represented by:
Recoverable revenue 941 936 TOTAL 941 936
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 157 -
Note 2013/14 2012/13 R'000 R'000 Recoverable revenue Opening balance 936 689 Transfers: 5 247
Irrecoverable amounts written off 5.1 417 Debts revised Debts recovered (included in departmental receipts)
(776) (279)
Debts raised 364 526 Closing balance 941 936
TOTAL 941 936
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 158 -
Note 2013/14 2012/13 R'000 R’000 CASH FLOWS FROM OPERATING ACTIVITIES
Receipts 623,351 578,543 Annual appropriated funds received 1.1 573,971 533,235 Departmental revenue received 2 540 596 Interest received 2.3 48,840 44,712
Net (increase)/decrease in working capital 996 31,811 Surrendered to Revenue Fund (60,332) (99,349) Current payments (545,861) (474,802) Payments for financial assets (417) (13) Transfers and subsidies paid (25,290) (37,624) Net cash flow available from operating activities 15 (7,553) (1,434) CASH FLOWS FROM INVESTING ACTIVITIES
Payments for capital assets 7 (5,973) (5,901) Proceeds from sale of capital assets 2.4 434 32 Net cash flows from investing activities (5,539) (5,869) CASH FLOWS FROM FINANCING ACTIVITIES
Distribution/dividend received
3
Increase/(decrease) in net assets 5 247 Net cash flows from financing activities 5 250 Net increase/(decrease) in cash and cash equivalents (13,087) (7,053)
Cash and cash equivalents at beginning of period 13,027 20,080 Cash and cash equivalents at end of period 8 (60) (13,027)
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 159 -
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.
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 Foreign currency translation
Cash flows arising from foreign currency transactions are translated into South African Rands using the exchange rates prevailing at the date of payment / receipt.
6 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.
7 Revenue
7.1 Appropriated funds
Appropriated funds comprises of departmental allocations as well as direct charges
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 160 -
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.
7.2 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.
7.3 Accrued departmental revenue
Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the financial statements when:
• it is probable that the economic benefits or service potential associated with the transaction will flow to the department; and
• the amount of revenue can be measured reliably.
The accrued revenue is measured at the fair value of the consideration receivable.
Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents.
8 Expenditure
8.1 Compensation of employees
8.1.1 Salaries and wages
Salaries and wages are recognised in the statement of financial performance on the date of payment.
8.1.2 Social contributions
Social contributions made by the department in respect of current employees are recognised in the statement of 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.
8.2 Other expenditure
Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of financial performance on the date of
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 161 -
payment. The expense is classified as a capital expense if the total consideration paid is more than the capitalisation threshold.
8.3 Accrued expenditure payable
Accrued expenditure payable is recorded in the notes to the financial statements when the goods are received or, in the case of services, when they are rendered to the department.
Accrued expenditure payable is measured at cost.
8.4 Leases
8.4.1 Operating leases
Operating lease payments made during the reporting period are recognised as current expenditure in the statement of financial performance on the date of payment.
The operating lease commitments are recorded in the notes to the financial statements.
8.4.2 Finance leases
Finance lease payments made during the reporting period are recognised as capital expenditure in the statement of financial performance on the date of payment.
The finance lease commitments are recorded in the notes to the financial statements and are not apportioned 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.
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 162 -
9 Aid Assistance
9.1 Aid assistance received
Aid assistance received in cash is recognised in the statement of financial performance when received. In-kind aid assistance is recorded in the notes to the financial statements on the date of receipt and is measured at fair value.
Aid assistance not spent for the intended purpose and any unutilised funds from aid assistance that are required to be refunded to the donor are recognised as a payable in the statement of financial position.
9.2 Aid assistance paid
Aid assistance paid is recognised in the statement of financial performance on the date of payment. Aid assistance payments made prior to the receipt of funds are recognised as a receivable in the statement of financial position.
10 Cash and cash equivalents
Cash and cash equivalents are stated at cost in the statement of financial position.
Bank overdrafts are shown separately on the face of the statement of financial position.
For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.
11 Prepayments and advances
Prepayments and advances are recognised in the statement of financial position when the department receives or disburses the cash.
Prepayments and advances are initially and subsequently measured at cost.
<Indicate when prepayments are expensed and under what circumstances.>
12 Loans and receivables
Loans and receivables are recognised in the statement of financial position at cost plus accrued interest, where interest is charged, less amounts already settled or written-off.
13 Investments
Investments are recognised in the statement of financial position at cost.
14 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
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 163 -
to the financial statements.
15 Payables
Loans and payables are recognised in the statement of financial position at cost.
16 Capital Assets
16.1 Immovable capital assets
Immovable capital assets are initially recorded in the notes to the financial statements at cost. Immovable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition.
Where the cost of immovable capital assets cannot be determined accurately, the immovable capital assets are measured at R1 unless the fair value of the asset has been reliably estimated, in which case the fair value is used.
All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) are recorded at R1.
Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.
Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the immovable asset is recorded by another department in which case the completed project costs are transferred to that department.
16.2 Movable capital assets
Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition.
Where the cost of movable capital assets cannot be determined accurately, 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) are 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 is added to the cost of the asset at the end of the capital project unless the movable asset is recorded by another department/entity in which case the completed project costs are transferred to that department.
16.3 Intangible assets
Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition.
Internally generated intangible assets are recorded in the notes to the financial statements when the department commences the development phase of the project.
Where the cost of intangible assets cannot be determined accurately, the intangible
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 164 -
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) are recorded at R1.
Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.
Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the intangible asset is recorded by another department/entity in which case the completed project costs are transferred to that department.
17 Provisions and Contingents
17.1 Provisions
Provisions are recorded in the notes to the financial statements when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation and a reliable estimate of the obligation can be made. The provision is measured as the best estimate of the funds required to settle the present obligation at the reporting date.
17.2 Contingent liabilities
Contingent liabilities are recorded in the notes to the financial statements when there is a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department or when there is a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably
17.3 Contingent assets
Contingent assets are recorded in the notes to the financial statements when a possible asset arises from past events, and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department
17.4 Commitments
Commitments 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
18 Unauthorised expenditure
Unauthorised expenditure is recognised in the statement of financial position until such
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 165 -
time as the expenditure is either:
• approved by Parliament or the Provincial Legislature with funding and the related funds are received; or
• approved by Parliament or the Provincial Legislature without funding and is written off against the appropriation in the statement of financial performance; or
• transferred to receivables for recovery.
Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure.
19 Fruitless and wasteful expenditure
Fruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred.
Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or 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.
20 Irregular expenditure
Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the irregularity unless it is impracticable to determine, in which case reasons therefore are provided in the note.
Irregular expenditure is removed from the note when it is either condoned by the relevant authority or transferred to receivables for recovery.
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.
21 Changes in accounting estimates
N/A
22 Prior period errors
N/A
23 Non-adjusting events after the reporting date
There were no events after reporting date
24 Agent-Principal arrangements
[N/A arrangements and refer to the relevant note to the financial statements]
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 166 -
1. Annual Appropriation
1.1 Annual Appropriation Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds) and Provincial Departments:
2013/14 2012/13
Final Appropriation
Actual Funds
Received
Funds not requested/
not received
Appropriation received
R’000 R’000 R’000 R’000 Administration 113,064 99,160 13,904 99,645 Fiscal Resource Management
102,395 89,822 12,573 82,758
Financial Management
269,086 236,311 32,775 195,987
Internal Audit 109,581 96,154 13,427 92,981 Growth and Development
59,845 52,524 7,321 61,864
Total 653,971 573,971 80,000 533,235
2 Departmental revenue Note 2013/14 2012/13 R’000 R’000 Tax revenue Sales of goods and services other than capital assets
2.1 169 159
Fines, penalties and forfeits 2.2 1 Interest, dividends and rent on land 2.3 48,840 44,715 Sales of capital assets 2.4 434 32 Transactions in financial assets and liabilities 2.5 370 437 Total revenue collected 49,814 45,343 Departmental revenue collected 49,814 45,343
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 167 -
2.1 Sales of goods and services other than capital assets Note 2013/14 2012/13 2 R’000 R’000 Sales of goods and services produced by the department
167 158
Sales by market establishment 54 49 Administrative fees 51 51 Other sales 62 58
Sales of scrap, waste and other used current goods 2 1 Total 169 159
2.2` Fines, penalties and forfeits Note 2013/14 2012/13 2 R’000 R’000 Penalties 1 Total 1
2.3 Interest, dividends and rent on land Note 2013/14 2012/13 2 R’000 R’000 Interest 48,840 44,712 Dividends 3 Total 48,840 44,715
2.4 Sale of capital assets
Note 2013/14 2012/13 2 R’000 R’000 Tangible assets 434 32
Machinery and equipment 24.2 434 32
Total 434 32
2.5 Transactions in financial assets and liabilitie s Note 2013/14 2012/13 2 R’000 R’000 Receivables 370 437 Total 370 437
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 168 -
3 Compensation of employees
3.1 Salaries and Wages Note 2013/14 2012/13 R’000 R’000 Basic salary 127,309 112,320 Performance award 3,783 2,224 Service Based 74 142 Compensative/circumstantial 2,074 2,261 Periodic payments 632 676 Other non-pensionable allowances 32,225 28,445 Total 166,097 146,068
3.2 Social contributions
Note 2013/14 2012/13 R’000 R’000
Employer contributions Pension 14,672 13,131 Medical 4,534 4,340 Bargaining council 23 21 Total 19,229 17,492
Total compensation of employees 185,326 163,560
Average number of employees 475 477
An amount of R 417 for learner ship was classified to compensative/ circumstantial in compensation of employees from other operating expenditure in goods and services in 2012/13 financial year due to the SCOA changes.
4 Goods and services Note 2013/14 2012/13 R’000 R’000 Administrative fees 11,898 10,315 Advertising 3,993 4,129 Capital assets less than R5000 4.1 614 497 Bursaries (employees) 194 297 Catering 2,961 2,199 Communication 2,156 2,357
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 169 -
Computer services 4.2 112,843 110,935 Consultants, contractors and agency/outsourced services
4.3 177,428 129,502
Entertainment 6 Audit cost – external 4.4 3,318 4,526 Fleet services 1,194 1,017 Consumables 4.5 2,351 2,018 Operating leases 13,498 14,805 Property payments 4.6 7,072 7,854 Transport provided as part of the departmental activities
931 531
Travel and subsistence 4.7 12,512 14,143 Venues and facilities 2,952 2,554 Training and development 2,021 1,572 Other operating expenditure 4.8 2,599 1,985 Total 360,535 311,242
An amount of R 417 for learnership from other operating expenditure was reclassified to compensation of employees in 2012/13 financial year due to the SCOA changes.
4.1 Minor assets
Note 2013/14 2012/13 4 R’000 R’000 Tangible assets
Machinery and equipment 614 497 Total 614 497
4.2 Computer services
Note 2013/14 2012/13 4 R’000 R’000 SITA computer services 97,003 84,343 External computer service providers 15,840 26,592 Total 112,843 110,935
4.3 Consultants, contractors and agency/outsourced services
Note 2013/14 2012/13 4 R’000 R’000 Business and advisory services 163,279 122,751 Legal costs 1,218 1,659 Contractors 12,355 4,574
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 170 -
Agency and support/outsourced services
576
518
Total 177,428 129,502
4.4 Audit cost – External
Note 2013/14 2012/13 4 R’000 R’000 Regularity audits 3,074 3,799 Performance audits 281 Computer audits 244 446 Total 3,318 4,526
4.5 Consumables
Note 2013/14 2012/13
4 R’000 R’000 Consumable supplies 564 573
Uniform and clothing 158 79 Household supplies 273 325 Building material and supplies 71 26 Communication accessories 1 IT consumables 28 75 Other consumables 34 67
Stationery, printing and office supplies 1,787 1,445 Total 2,351 2,018
4.6 Property payments Note 2013/14 2012/13 4 R’000 R’000 Municipal services 2,953 3,038 Property maintenance and repairs 4,119 4,816 Other Total 7,072 7,854
4.7 Travel and subsistence
Note 2013/14 2012/13
4 R’000 R’000 Local 11,531 11,854 Foreign 981 2,289 Total 12,512 14,143
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 171 -
4.8 Other operating expenditure Note 2013/14 2012/13 4 R’000 R’000 Professional bodies, membership and subscription fees
308 282
Resettlement costs 126 179 Other 2,165 1,524 Total 2,599 1,985
5 Payments for financial assets
Note 2013/14 2012/13
R’000 R’000 Debts written off 5.1 417 13 Total 417 13
5.1 Debts written off
Note 2013/14 2012/13 5 R’000 R’000
Nature of debts written off
Other debt written off 417 13
Total 417 13 Total debt written off 417 13
6 Transfers and subsidies 2013/14 2012/13 R’000 R’000 Note Provinces and municipalities 48, 49, Annex
1A, Annex 1B
21,085 28,012
Departmental agencies and accounts Annex 1C 13 14 Households Annex 1H 3,307 9,598 Gifts, donations and sponsorships made Annex 1K 885 Total 25,290 37,624 Unspent funds transferred to the above beneficiaries
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 172 -
7 Expenditure for capital assets Note 2013/14 2012/13 R’000 R’000 Tangible assets 5,507
Machinery and equipment 24 5,973 5,507 Intangible assets 394
Software 25 394
Total 5,973 5,901
7.1 Analysis of funds utilised to acquire capital a ssets – 2013/14 Voted funds Aid
assistance Total
R’000 R’000 R’000 Tangible assets
Machinery and equipment 5,973 5,973
Total 5,973 5,973
7.2 Analysis of funds utilised to acquire capital a ssets 2012/13 Voted funds Aid
assistance Total
R’000 R’000 R’000 Tangible assets 5,507 5,507
Machinery and equipment 5,507 5,507 Intangible assets 394 394
Software 394 394 Total 5,901 5,901
8 Cash and cash equivalents Note 2013/14 2012/13 R’000 R’000 Consolidated Paymaster General Account 13,023 Cash on hand 4 4
Total 4 13,027
Indicate the amount of significant cash and cash equivalent balances held by the department that are not available for use.
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 173 -
9 Prepayments and advances Note 2013/14 2012/13 R’000 R’000 Travel and subsistence 48 8 Total 48 8
10 Receivables 2013/14 2012/13
R’000 R’000 R’000 R’000 R’000
Note
Less than one
year
One to three years
Older than three years
Total
Total
Claims recoverable 10.1
Annex
4
305 305 1,476
Recoverable expenditure
10.3 206 206 62
Staff debt 10.4 86 76 162 271 Other debtors 10.5 149 272 754 1,175 1,010 Total 746 348 754 1,848 2,819
10.1 Claims recoverable Note 2013/14 2012/13
15 R’000 R’000 National departments 4 Provincial departments 300 991 Private enterprises 1 114 Local governments 371 Total 305 1,476
10.2 Recoverable expenditure (disallowance accounts ) Note 2013/14 2012/13 10 R’000 R’000
Sal tax Debts 38 62 Disall damages & Losses 100 100 Disall damages & Losses (100) (100) Sal: Reversal Control CA 146 Pension Recoverable 22 Total 206 62
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 174 -
10.3 Staff debt Note 2013/14 2012/13 10 R’000 R’000
Tax debts 7 Bursary debt 121 262 Overpaid Salary 4 3 Travel and Subsistence 9 Housing Allowance 1 6 Cellphone 20 Total 162 271
10.4 Other debtors Note 2013/14 2012/13 10 R’000 R’000
Bursary debts 953 823 Losses and damages 9 38 Overpaid salary 155 111 Tax Debts 10 Subsidies vehicle 16 16 Private telephone calls 23 5 Other 9 17 Total 1,175 1,010
11 Voted funds to be surrendered to the Revenue Fun d Note 2013/14 2012/13 R’000 R’000 Opening balance 14,895 49,699 Prior period error (2012/13) 11.2 As restated 14,895 49,699 Transfer from statement of financial performance (as restated)
76,430 94,895
Add: Unauthorised expenditure for current year 11 Voted funds not requested/not received 1.1 (80,000) (80,000) Paid during the year (14,895) (49,699) Closing balance (3,570) 14,895
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 175 -
12 Departmental revenue and NRF Receipts to be surr endered to the Revenue Fund Note 2013/14 2012/13 R’000 R’000 Opening balance 20 4,327 Prior period error (2012/13) 12.1 As restated 20 4,327 Transfer from Statement of Financial Performance (as restated)
49,814 45,343
Paid during the year (45,437) (49,650) Closing balance 4,397 20
13 Bank Overdraft Note 2013/14 2012/13 R’000 R’000 Consolidated Paymaster General Account 64 Total 64
14 Payables – current Note 2013/14 2012/13
R’000 R’000
Clearing accounts 14.1 68 3 Total 68 3
14.1 Clearing accounts
Note 2013/14 2012/13 14 R’000 R’000 Sal: Income tax 68 3 Total 68 3
15 Net cash flow available from operating activitie s Note 2013/14 2012/13 R’000 R’000 Net surplus/(deficit) as per Statement of Financial Performance
126,244 140,238
Add back non cash/cash movements not deemed operating activities
(133,797) (141,672)
(Increase)/decrease in receivables – current 971 31,834 (Increase)/decrease in prepayments and advances (40) 15 Increase/(decrease) in payables – current 65 (38)
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 176 -
Proceeds from sale of capital assets (434) (32) Proceeds from sale of investments (3) Expenditure on capital assets 5,973 5,901 Surrenders to Revenue Fund (60,332) (99,349) Voted funds not requested/not received (80,000) (80,000) Net cash flow generated by operating activities (7 ,553) (1,434)
16 Reconciliation of cash and cash equivalents for cash flow purposes Note 2013/14 2012/13 R’000 R’000 Consolidated Paymaster General account (64) 13,023 Cash on hand 4 4 Total (60) 13,027
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 177 -
17 Contingent liabilities and contingent assets
17.1 Contingent liabilities Note 2013/14 2012/13 R’000 R’000 Liable to Nature Claims against the department Annex 3B 45 45 Intergovernmental payables (unconfirmed balances)
Annex 5 2,352 733
Total 2,397 778
18 Commitments Note 2013/14 2012/13 R’000 R’000 Current expenditure Approved and contracted 140,520 57,120 Approved but not yet contracted 140,520 57,120 Capital expenditure Approved and contracted 239 Approved but not yet contracted 239 Total Commitments 140,759 57,120
19 Accruals 2013/14 2012/13 R’000 R’000 Listed by economic classification
30 Days 30+ Days Total Total Goods and services 14,874 3,286 18,160 8,306 Capital assets 351 Total 14,874 3,286 18,160 8,657
Note 2013/14 2012/13 R’000 R’000 Listed by programme level Administration 2,926 2,830 Fiscal Resource Management 1,613 1,244 Financial Management 9,247 2,329 Internal Audit 4,061 2,180 Growth and Development 313 74 Total
18,160
8,657
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 178 -
Note 2013/14 2012/13 R’000 R’000 Confirmed balances with other departments Annex 5 1 Confirmed balances with other government entities Annex 5 42 171 Total 43 171
20 Employee benefits Note 2013/14 2012/13
R’000 R’000 Leave entitlement 4,440 5,188 Service bonus (Thirteenth cheque) 4,235 3,865 Performance awards 2,715 2,034 Capped leave commitments 5,667 5,068 Other 5 Total 17,057 16,160
21 Lease commitments
21.1 Operating leases expenditure
2013/14
Specialised
military equipment
Land
Buildings and other
fixed structures
Machinery
and equipment
Total Not later than 1 year 8,793 8,793 Later than 1 year and not later than 5 years
15,472 15,472
Total lease commitments 24,265 24,265
2012/13
Specialised
military equipment
Land
Buildings and other
fixed structures
Machinery
and equipment
Total
Not later than 1 year 11,196 11,196 Later than 1 year and not later than 5 years
28,902 28,902
Total lease commitments 40,098 40,098
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 179 -
21.2 Finance leases expenditure**
2013/14
Specialised
military equipment
Land
Buildings and other
fixed structures
Machinery
and equipment
Total Not later than 1 year 1,732 1,732 Later than 1 year and not later than 5 years
437 437
Total lease commitments
2,169 2,169
2012/13
Specialised
military equipment
Land
Buildings and other
fixed structures
Machinery
and equipment
Total Not later than 1 year 694 694 Later than 1 year and not later than 5 years
211 211
Total lease commitments
905 905
**This note excludes leases relating to public private partnership as they are separately disclosed to note no.35.
22 Irregular expenditure Note 2013/14 2012/13 R’000 R’000 Opening balance **Add: Irregular expenditure – relating to current year 433 96 Less: Current year amounts condoned (433) (96) Irregular expenditure awaiting condonation - - **Part of the expenditure will be paid in the financial year 2014/15 and it will be disclosed in the relevant register accordingly as the project is ongoing.
22.1 Details of irregular expenditure – current yea r Incident Disciplinary steps taken/criminal
proceedings 2013/14 R’000
Project commenced without an official purchase order - SAB & T
Warning letters were issued to Mr K Lamola and the service provider involved.
391
Advertisement was published without official order. - Ultimate Recruitment
Verbal warning was given to Ms S Ngema.
32
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 180 -
Plumbing services were rendered beyond approved scope of the initial order.
Warning letters were done. .
10
Total 433
22.2 Details of irregular expenditure condoned Incident Condoned by (condoning authority) 2013/14
R’000 Work commenced without an purchase order
Accounting Officer 391
Work commenced without an purchase order
Accounting Officer 32
Work commenced without an purchase order
Accounting Officer 10
Total 433
23 Key management personnel
No. of Individuals
2013/14 2012/13
R’000 R’000 Political office bearers (provide detail below) 1 1,735 1,652 Officials:
Level 15 to 16 4 5,350 4,349 Level 14 (incl. CFO if at a lower level) 9 9,585 9,071
Family members of key management personnel
Total 16,670 15,072
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 181 -
24 Movable Tangible Capital Assets MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASS ET REGISTER FOR THE YEAR ENDED 31 MARCH 2014 Opening
balance Curr Year
Adjust-ments to prior year balances
Additions Disposals Closing Balance
R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT
34,217 (27) 5,973 1,682 38, 481
Transport assets 5,427 1,695 1,109 6,013 Computer equipment 25,132 4,055 573 28,614 Furniture and office equipment 3,357 (27) 218 3,548 Other machinery and equipment 301 5 306 TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 34,217 (27) 5,973 1,682 38, 481
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 182 -
24.1 Additions
ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER AS SET REGISTER FOR THE YEAR ENDED 31 MARCH 2014 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 5,973 5,973 Transport assets 1,695 1,695 Computer equipment 4,055 4,055 Furniture and office equipment 218 218 Other machinery and equipment 5 5 TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 5,973 5,973
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 183 -
24.2 Disposals
DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER AS SET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
Sold for cash
Transfer out or
destroyed or
scrapped
Total disposals
Cash Received
Actual
R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 1,109 573 1,682 434 Transport assets 1,109 1,109 434 Computer equipment 573 573 Furniture and office equipment Other machinery and equipment TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS 1,109 573 1,682 434
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 184 -
24.3 Movement for 2012/13
Opening
balance Curr Year
Adjust-ments to prior year balances
Additions Disposals Closing Balance
R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT
28,841 1,760 5,507 1,891 34,217
Transport assets 4,474 832 1,053 932 5,427 Computer equipment 20,917 889 4,180 854 25,132 Furniture and office equipment 2,890 298 274 105 3,357 Other machinery and equipment 560 (259) 301 TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 28,841 1,760 5,507 1,891 34,217
24.4 Minor assets
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2014
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
1,651 4,315 5,966
Curr Year
Adjustments to Prior Year balances
(3) (3)
Additions 615 615 Disposals (15) (15) TOTAL MINOR ASSETS
1,651 4,912 6,563
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 185 -
Specialised military assets
Intangible assets
Heritage assets
Machinery and
equipment
Biological assets
Total
Number of R1
minor assets
2,064 2,064
Number of
minor assets at cost
36 2,452 2,488
TOTAL NUMBER OF MINOR ASSETS
36 4,516 4,552
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2013
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
1,651 4,081 5,732
Curr Year Adjustments to
Prior Year
balances
6 6
Additions 497 497 Disposals (269) (269) TOTAL MINOR ASSETS
1,651 4,315 5,966
Specialised military assets
Intangible assets
Heritage assets
Machinery and
equipment
Biological assets
Total
Number of R1 minor assets
2,086 2,086
Number of
minor assets at cost
36 2,158 2,194
TOTAL NUMBER OF MINOR ASSETS
36 4,244 4,280
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 186 -
25 Intangible Capital Assets MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REG ISTER FOR THE YEAR ENDED 31 MARCH 2014 Opening
balance Current
Year Adjust-
ments to prior year balances
Additions Disposals Closing Balance
R’000 R’000 R’000 R’000 R’000 28,515 28,515 SOFTWARE TOTAL INTANGIBLE CAPITAL ASSETS 28,515 28,515
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 187 -
25.1 Movement for 2012/13
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REG ISTER FOR THE YEAR ENDED 31 MARCH 2013 Opening
balance Current
Year Adjust-
ments to prior year balances
Additions Disposals Closing Balance
R’000 R’000 R’000 R’000 R’000 SOFTWARE 29,881 (1,760) 394 28,515 TOTAL INTANGIBLE CAPITAL ASSETS 29,881 (1,760) 394 28,515
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 188 -
ANNEXURE 1A STATEMENT OF CONDITIONAL GRANTS PAID TO MUNICIPALIT IES
NAME OF MUNICIPALITY
GRANT ALLOCATION TRANSFER SPENT 2012/13
Division
of Revenue
Act
Roll Overs
Adjustments
Total Available
Actual Transfer
Funds Withheld
Re-allocations by National Treasury or
National Department
Amount received
by municipality
Amount spent by
municipality
% of available
funds spent by
municipality
Division
of Revenue
Act
R’000 R’000 R'000 R'000 R'000 % R'000 R'000 % R’000
KZN216 Hibscus 2,288 2,288 2,008 2,008 2,008 100%
KZ225 Msunduzi 16,186 16,186 16,186 16,186 16,186 100% 16,760 DC26 Zululand 603 603 597 597 597 100% 20,000 KZA4 Kokstad 20,677 20,677 2,294 2,294 2,294 100% 10,062
KZ282 Umhlathuze 8,041
20,677 16,789 2,288 39,754 21,085 21,085 21,085 54,863
National Departments are reminded of the DORA requirements to indicate any re-allocations by the National Treasury or the transferring department, certify that all transfers in terms of this Act were deposited into the primary bank account of a province or, where appropriate, into the CPD account of a province as well as indicate the funds utilised for the administration of the receiving officer.
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 189 -
ANNEXURE 1B STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS
DEPARTMENT/ AGENCY/ ACCOUNT
TRANSFER ALLOCATION TRANSFER 2012/13
Adjusted Appro-
priation
Roll Overs
Adjust-ments
Total Available
Actual Transfer
% of Available
funds Transferred
Appro-priation Act
R'000 R'000 R'000 R'000 R'000 % R'000 PD Vehicles 20 20 12 60% 14 Com Licences (Radio & TV) 2 2 1 50% 22 22 13 14
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 190 -
ANNEXURE 1C STATEMENT OF TRANSFERS TO HOUSEHOLDS
HOUSEHOLDS
TRANSFER ALLOCATION EXPENDITURE 2012/13 Adjusted
Appropriation
Act
Roll Overs
Adjust-ments
Total Available
Actual Transfer
% of Available
funds Transferred
Appro-
priation Act
R'000 R'000 R'000 R'000 R'000 % R'000 Transfers Injury on duty 8 4 12 12 100% Post retirement benefit 1,239 (186) 1,053 435 41% 1,332 Severance packages 392 Leave gratuity 137 171 308 307 100% 30 Bursaries non - employee 4,058 4,058 2,528 62% 11,830 Claims against State 16 11 27 25 93% 8 Subtotal 5,458 5,458 3,307 13,592
Total 5,458 5,458 3,307 13,592
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 191 -
ANNEXURE 1D STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECE IVED
NAME OF ORGANISATION NATURE OF GIFT, DONATION OR SP ONSORSHIP
2013/14 2012/13
R’000 R’000
Received in cash Subtotal Received in kind ABSA Bank Sponsorship for the 2013 post Budget Breakfast 263 Institute of Internal Auditors of SA Sponsorship for the IAT Learnership Graduation 3 Ubunye Consortium Sponsorship for hosting of the municipal risk forum 50 ABSA Bank Sponsorship for the 2014: Women’s Business Breakfast 13 FNB Sponsorship for the 2014: Budget Road Show 80 Subtotal 93 316 TOTAL 93 316
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 192 -
ANNEXURE 1E STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE AND REMMISSIONS, REFUNDS AND PAYMENTS MADE AS AN A CT OF GRACE NATURE OF GIFT, DONATION OR SPONSORSHIP
2013/14 2012/13
R’000 R’000
Paid in cash Umgeni Municipality 35 Mpofana Municipality 35 Umshwathi Municipality 35 Impendle Municipality 35 Mkhambathini Municipality 35 Subtotal 175 Made in kind Duzi Primary 66 Ottawa Primary School 8 Amaoti No 3 Combine School 8 Bavumile Junior Primary School 8 Bhekulwandle Primary School 8 Wozamoya High School 8 Ndwedwe Circuit 2 Maphumulo Circuit 2 Mandeni Circuit 2 Mhlali Circuit 2 Mgungundlovu District 37 Mgungundlovu District 443 Ilembe District 37 Mgungundlovu District 10
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 193 -
Richmond District 53 Underberg District 16 Subtotal 710 TOTAL 885
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 194 -
ANNEXURE 2A STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2014
Nature of Liability
Liabilities incurred
during the year
Liabilities paid/cancelled/reduced during the
year
Liabilities recoverable (Provide
details hereunder)
Opening Closing Balance Balance
1 April 20YY 31 March
2014 R’000 R’000 R’000 R’000 R’000
Claims against the department Legal Fees 45 45 Subtotal 45 45
TOTAL 45 45
ANNEXURE 2A (CONTINUED) STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2014
Nature of liabilities recoverable
Opening balance 1 April 2013
Details of liability and recoverability
Movement during the year
Closing balance 31 March 2014
R'000 R'000 R'000
45 The case is still pending 45
Total 45 - 45
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 195 -
ANNEXURE 3 CLAIMES RECOVERABLE
Government Entity
Confirmed balance outstanding
Unconfirmed balance outstanding Total
31/03/2014 31/03/2013 31/03/2014 31/03/2013 31/03/2014 31/03/2013 R’000 R’000 R’000 R’000 R’000 R’000
Department KZ Agriculture and Environmental Affairs 1 1 KZ Social Development 872 872 KZ Sports and Recreation 101 101 Independent Complaints 16 16 NW Finance 1 1 KZ Economic development 300 300 N Labour Compensation Fund 4 4 300 101 4 890 304 991 Other Government Entities Newcastle Municipality 171 171 eDumbe Municipality 200 200 Pro PM Consulting 114 114 Giltme 1 1 1 485 1 485 TOTAL 301 101 4 1,375 305 1,476
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 196 -
ANNEXURE 4 INTER-GOVERNMENT PAYABLES
GOVERNMENT ENTITY
Confirmed balance outstanding
Unconfirmed balance outstanding TOTAL
31/03/2014 31/03/2013 31/03/2014 31/03/2013 31/03/2014 31/03/2013 R’000 R’000 R’000 R’000 R’000 R’000
DEPARTMENTS
Current Department of Labour 17 17 KZ Premier 135 328 328 328 463 KZ Social Development 1 181 181 182 181 KZ Transport 1 1 KZ Health 48 2 48 2 EC Treasury 36 36 KZ Economic Development 4 4 Government Printing Works 171 168 171 168 Statistic SA 4 4 KZ Public Works 1,505 1,505 SAPS 51 51 Department of Justice 34 34 Subtotal 1 171 2,318 705 2,319 876 Non-current Subtotal Total 1 171 2,318 705 2,319 876
OTHER GOVERNMENT ENTITY
Current Palama 42 34 28 76 28 Subtotal 42 34 28 76 28 Subtotal Total 43 171 2,352 733 2,395 904
KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
KZN Provincial Treasury Annual Report - 197 -
ANNEXURE 5 INVENTORY
Inventory Note Quantity 2013/14 Quantity 2012/13 R’000 R’000
Opening balance 329 Add/(Less): Adjustments to prior year balance Add: Additions/Purchases - Cash 629 Add: Additions - Non-cash (Less): Disposals (82) (Less): Issues (548) Add/(Less): Adjustments 3 Closing balance 331