kwazulu-natal provincial treasury: vote 6
TRANSCRIPT
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
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TABLE OF CONTENTS
PART A: GENERALINFORMATION
A.1 Foreword by the MEC of Finance iii A.2 Introduction by the Head of Department iv A.3 Vision, Mission and Values 4 A.4 Legislative and Other Mandates 4
PART B: PROGRAMME PERFORMANCE
B.1 Programme 1: Administration 9 B.2 Programme 2: Fiscal Resource Management 22 B.3 Programme 3: Financial Management 35 B.4 Programme 4: Internal Audit 50 B.5 Programme 5: Growth and Development 59
PART C: REPORT OF AUDIT COMMITTEE 61
PART D: ANNUAL FINANCIAL STATEMENTS
D.1 Report of the Accounting Officer 65 D.2 Report of the Auditor-General 71 D.3 Appropriation Statement 75 D.4 Notes to the Appropriation Statement 91 D.5 Statement of Financial Performance 94 D.6 Statement of Financial Position 95 D.7 Statement of Changes in Net Assets 96 D.8 Cash Flow Statement 97 D.9 Accounting Policies 98 D.10 Notes to the Annual Financial Statements 108 D.11 Disclosures Notes to the Annual Financial Statements 120 D.12 Annexures to the Annual Financial Statements 128
PART E: HUMAN RESOURCE MANAGEMENT
E.1 Expenditure 138 E.2 Employment and Vacancies 140 E.3 Job Evaluation 143 E.4 Employment Changes 145 E.5 Employment Equity 149 E.6. Performance Rewards 154 E.7 Foreign Workers 157 E.8 Leave Utilisation 158 E.9 HIV and Aids and Health Promotion Programmes 160 E.10 Labour Relations 161 E.11 Skills Developments 163 E.12 Injury on Duty 165 E.13 Utilisation of Consultants 165
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PART A: GENERAL INFORMATION A1: FOREWORD BY THE MEC OF FINANCE, MS CM CRONJÉ
This Annual Report brings us closer to our quest to be THE centre of financial excellence, not only in our Province but also measured against the best in the world. As expected from a Provincial Treasury, we were again given a clean bill of health by the Auditor-General for our 2012/13 financial management.
Some key milestones achieved by Provincial Treasury includedtwo awards: a Gold Award from the Premier, Dr Zweli Mkhize, during the 2012 HR Convention for the “Best serving Human Resources” in KwaZulu-Natal, as well as the FNB Top Business Award for our financial literacy programme which promotes socio-economic growth.This unique relationship with the private sector also resulted in KZN becoming the first to host a Provincial Financial Education Conference. Another partnership that has earned us praise is Provincial Treasury’s partnership with SAICA on the Thuthuka Bursary Fund, where we are sponsoring 100 deserving young people to become Chartered Accountants.
Our programmes to stimulate the economy included upgrades and improvements at various regional airports, as well as a series of six airshows. Giving the economy a further boost was the introduction of the Infrastructure “Crack” Team, which has resulted in an increase in infrastructure spending in the Province (from 88% in 2009 to 99.4% in 2012/13).
Focusing on the enhancement of revenue has paid off, as we have over-collected R331.6 million of own revenue as a Province, with Treasury showing significant over-collection of revenue.Our efforts to provide solutions to enhance payments from patient fees will strengthen our provincial receipts further. We are happy to report that the Province remains with a healthy cash positive bank balance. Monthly reports to Cabinet certainly help to take swift action when necessary.
The 74% reduction in arrears government debt owed to municipalities from June 2010 to date is to be applauded. We are looking forward to further improvements in our systems as well as the billing systems of certain municipalities in 2013/14.The municipal finance unit is now able to assist all 58 delegated municipalities with budget preparation. This was not the case 4 years ago.
It is encouraging to see the positive impact of the ‘Operation Pay on Time’ call centre. Departments have performed particularly well (93.5% payment of invoices within 60 days and 80% payment of invoices within 30 days). This is now even better than in the private sector. Outreach programmes and initiatives under Operation Sukuma Sakhe are picking up momentum and we are happy that we could assist 288 households on farms in the Karkloof area with electricity and facilitate the training of about 1 000 fieldworkers in selected wards in all five sub-regions in eThekwini.
While we learn from our achievements, we also learn from our mistakes and limitations. There is certainly always room for improvement and that, as someone pointed out, is the “biggest room in the house!” Let us continue to improve the lives of our people by delivering services efficiently, effectively and economically. Let us do more, better, with less!
Ms CM Cronjé
MEC for Finance
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A.2: INTRODUCTION BY THE HEAD OF DEPARTMENT
The main responsibility for Provincial Treasury is to ensure compliance and full implementation by departments and municipalities of the two most important pieces of legislation that regulate the management of public funds, namely: Public Finance Management Act (PFMA) of 1999 as well as the Municipal Finance Management Act (MFMA) of 2003.
In keeping with our vision of being “the centre of excellence in the financial management in the country”, the department has introduced various initiatives and programmes which are currently bearing fruits.One of the most critical ones is the introduction and the continued compliance to the Provincial Recovery Plan, otherwise referred to as the Cost-Cutting Measures. This Plan is responsible for getting the Province out of the R3 billion overdraft into a current cash surplus of about R4.5 billion. This Plan has not only improved the financial position of the Province, but it has also helped to steer the provincial government back to financial sustainability.
As a department, we continue 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 shrinking share of KwaZulu-Natal’s population compared to Gauteng.
In 2009, the Province had a challenge in spending its infrastructure allocation fully. This prompted Provincial Treasury to establish an Infrastructure “Crack” Team in 2010/11. This team has helped to unlock multi-million Rands worth of blocked infrastructure projects in various departments and municipalities. The provincial infrastructure spending has improved to almost 100% in 2012/13, up from 88% in 2009.
Through our Municipal Support Programme, we continue to provide assistance to municipalities to comply with the provisions of the MFMA.Our focus is on providing on-site support in specific areas of financial management at selected municipalities, such as assisting in the preparation and monitoring of budgets of all 58 municipalities delegated to KwaZulu-Natal, assisting in cash flow management as well as assisting struggling municipalities with competent people and encouraging municipalities in general to acquire their own fully competent personnel in the areas of financial management and accounting.
In partnership with National Treasury, we have launched the Municipal Finance Management Internship Programme (MFMIP) to assist municipalities to increase their capacity to implement the municipal finance reforms of the MFMA. The MFMIP seeks to assist municipalities to develop the knowledge and skills of the interns employed under this programme. It is an organised professional training and work experience programme with the goal of providing high quality training and practical exposure in all aspects of municipal finance management. The programme is designed to provide interns (who are graduates in the fields of Accounting, Economics and Finance) with a logical training sequence founded on the knowledge competencies they acquired as graduates. It is envisaged that, through workplace rotation, there will be interaction and mentoring by CFOs, international advisors and other experienced officials. These are but some of the many initiatives we have introduced in a bid to build on the successes of the past financial year.
With this annual report being an account of the KZN Provincial Treasury’s achievements and challenges during the 2012/13 financial year, we are confident that we are indeed moving closer to being the centre of excellence in financial management in the country. Mr L S Magagula
Head: Provincial Treasury
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VISION AND MISSION
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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)
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• 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)
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) Modernisethe 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
d) Eliminate waste and corruption in the use of public assets.
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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.
d) It promotes transparency and equity in the resource allocation process.
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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.
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.
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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.
4.3 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 0f 1999).
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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
1.1 Community Outreach
The extent and impact of the community outreach programmes of the Office of the MEC is
observed in the turn-out of people at the organised road shows, and appreciation of information
shared with the community.
The objectives of the budget road shows are to communicate the work done by Provincial
Treasury with regard to the budget, to educate communities about how the budget is put
together, what its priorities are, as well as to get the peoples’ input. This assists the department
to put together a budget that does not only reflect the priorities of the people, but also responds
to the socio-economic needs of the general population of the province. Communities are also
encouraged to start their own businesses so that they can be self-reliant.
At such forums, which take the format of business breakfast and community events, the public
also engage and ask questions from the MEC and Head of Department.Such forums were held
in the following municipal areas:
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• Emadlangeni – Utrecht Town Hall
• Edumbe – Bilanyoni Community Hall
• Umhlathuze – Thubalethu Sports Grounds
• Endumeni – Mpumelelo Stadium
• Ukhahlamba – Winterton / Green Point Stadium
• Umhlathuze – Empangeni / Ngwelezane
• Jozini – Egujini Sports Field
• Msunduzi – Imbali Township
• Msunduzi World Aids Day – Trustfeed Sports Ground
• Umdoni – Emalangeni MPCC
• Mooi-Mpofana – Middelrus Hall
1.2 Financial Literacy
The Financial Literacy Programme has grown from strength-to-strength since its inception in
2011. To date, about 92 member organisations have joined the KwaZulu-Natal Financial
Literacy Association (KZNFLA). Participating entities range from private sector entities,
parastatals, regulatory bodies, academic institutions as well as government departments. The
major achievement is that the footprint of financial literacy has been extended in KZN by sharing
resources, expertise, passion and enthusiasm. As government, we want to see everyone (young
and old) being financially literate. The days of finance matters being regarded as the preserve of
a select few are gone. We use financial education as a way of expanding social and economic
opportunity for all citizens in KZN. The KZNFLA focuses on five target groups, namely:
• Women and vulnerable groups.
• In-school youth.
• Out of school youth.
• SMMEs.
• Government employees.
The achievements of the Financial Literacy Programme are as follows:
• Government Employees Emoluments Attachments Worksho p:A two-day workshop was
held on debt counselling and Emoluments Attachment orders (commonly known as
“garnishee” orders) in partnership with the Office of the Premier and the National Credit
Regulator, to assist government employees who are indebted. Also, assistance was given to
government officials who implement the court orders to be able to identify legitimate court
orders.
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• Provincial Treasury became a member of the Internat ional Network for Financial
Education (INFE) of the Organisation for Economic C o-operation and Development
(OECD).We presented the KZN Provincial Literacy programmes at a conference hosted by
the OECD in Prague in partnership with the Czech National Bank. This forum served as an
opportunity to engage with a broad spectrum of world leaders on financial education,
financial inclusion and access. Challenges and solutions in the pension field, communication
tools for financial education and a special focus on financially empowering women and the
young generation, starting in schools, were some of the topics that were discussed.
• Child Youth Finance in Turkey: Under the In-school Youth Focus Group, 3 girls from
KwaZulu-Natal attended the global summit in Turkey on financial inclusion and economic
citizenship in May 2013. The summit provided the youth with an opportunity to better
understand the dynamic world of finances. The ever-changing face of the global economy
requires that children and youth need to prepare themselves at an early age to meet the
financial challenges of the future. Consequently, the KZNFLA will host its first annual Child
Youth Finance local summit in March 2014, involving local policymakers on financial
inclusion and economic citizenship, as well as children.
• Global Money Week: Learners from Ntuzuma, Umlazi, Embo, KwaNyuswa, Molweni and
Intshanga visited banks with the intention of teaching children the art of banking and
savingto appreciate the power of choice, to create awareness about the value of money and
the importance of saving.
• Surveys on the levels of financial literacy in households were conducted and will be
ongoing.
• The Grade 11 Speech Contest on Finance was extended from two circuits to all education
districts.
• Increasing Financial Education Training Workshops for government employees, including
teachers.
• Teach Children to Save – South Africa™ (TCTS) in KZN. An event was held at a primary
school in Paulpietersburg in 2012, where Treasury officials and the MEC became “teachers”
for a day.
• Promoting Financial Literacy – Taking Financial Edu cation to the People: A Conference
on Financial Education and Financial Literacy was held on 3 and 4 July 2012.
• Annual campaigns on “Wise” festive spending are held.
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• Training workshops for SMMEs are conducted.
• Partnerships have been established with savings groups and self-help groups .
• Publication of Know Your Money – YaziImaliYakho: This is aFinancial Education
newspaper for government employees in KwaZulu-Natal.
1.3 Savings Campaign
In the past four years, Provincial Treasury has been aggressively driving the importance of
saving through the Savings Campaign initiative. One cannot under-estimate the power of a
money box –it is a simple tool that we use to teach our people to save money. We aim to dispel
the myth that saving is an exclusive privilege for the rich only. Our emphasis is on the basics: the
simpler the method of saving money, the better it is understood. We teach our people to start
saving from Cents, so that it would be easier to save Rands later. The age old tradition of saving
in a money box is still effective and necessary. Through this initiative, we are inculcating a
culture of saving for both young and old.
1.4 Operation SukumaSakhe (OSS)
Provincial Treasury has continued to participate in Operation SukumaSakhe as part of our
commitment to service delivery.This commitment has been put into effect by including the
Operation SukumaSakhe initiatives of Provincial Treasury into the performance agreements and
workplans of SMS members from the 2012/13 assessment cycle.
Some of the achievements of Operation Sukuma Sakhe include the following:
• Edendale Moral Reconstruction Indaba – Lay Ecumenic al Centre: The purpose of the
Indaba was to discuss and come up with an action plan to mitigate the social ills in the
Edendale area, prompted by an incident of rape and murder of an elderly woman in
Dambuza in August 2012. Key role players included the religious, political, business and
social sectors, Men’s Forum and Youth Structures.
The Office of the Msunduzi Mayor and councillors forged a stronger working relationship with
key stakeholders to sustain community engagements on social ills discussed at the Indaba
using the existing structure of War Rooms in wards.
• OSS Middelrus Indaba – Mooi-Mpofana Municipality: The purpose of the Indaba was to
bring together key stakeholders, (viz. government departments, councillors, NGOs,
Traditional Leaders, Traditional Healers, the religious sector, farmers, etc.) to examine how
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they can work together more effectively to improve the implementation of Operation
SukumaSakhe in the Mooi-Mpofana local municipality.
We received positive feedback from the Mayor and the Chairperson of the Local Task Team
in Mooi-Mpofana that, after our intervention, there is much better co-operation among
stakeholders.
1.5 Electrification Project: uMngeni Municipality
A total of 288 households on farms in the Karkloof area benefited from the electrification
project that was initiated by the MEC together with uMngeni Municipality under the
Operation SukumaSakhe Project. We engaged through a tripartite forum consisting of
government, farm owners and dwellers. The success of this model enhanced the lives of
the farm dwellers and was an important step in improving relations between farm owners,
dwellers and employees. The breakdown of families who now have electricity on farms
through this intervention include the following:
o Triandra Farm - 34
o Hawkstone Farm - 54
o Spitzkop Farm - 53
o Colbourne Farm - 22
o Gartmore Farm - 23
o Yarrow Farm - 36
o Benson Farm - 66
At the same time, we also addressed other service delivery issues of water and sanitation,
and further engaged on social issues including:
o Grazing land.
o Burial rights and graveyards.
o Access control.
o Impounding of stock.
The greatest achievement of this intervention was to demonstrate that it is possible for
government to deliver services even on privately owned land (like farms) where, for too
long, the notion was harboured that it was impossible.
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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 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.
c) 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.
d) The creation of ‘Operation Pay on Time’ call centre to deal with complaints from service
providers regarding non-payment or late payment of accounts by provincial departments
has resulted in heightened awareness by all departments of the importance of paying
invoices within the 30-day PFMA prescribed time period. This centre has facilitated several
payments since its inception in August 2011 and there has been some improvements on the
number of invoices paid within 30 days.
e) Under Operation SukumaSakhe, the Office of the HOD achieved the following:
• Facilitated the training of almost 1 000 fieldworkers (community development workers,
community care-givers, and youth ambassadors) in selected wards in all five sub-regions
in eThekwini.
• Donated two reconditioned computers and filing cabinets to Ward 89. Also donated a
reconditioned computer to Mrs.Sokhela who is a pensioner and a community activist
elected as the secretariat for the North Central local task team.
• Working through the local task teams in the war-rooms, the Office of the HOD identified
300 school children in the most deprived wards in eThekwini that were to receive school
shoes. The distribution of the school shoes started in March and will end in May 2013.
The Office of the HOD also managed to get Al-Imdaad as a partner in this project and the
organisation supplied two pairs of socks to each child who received school shoes.
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f) In January 2013, the Office of the HOD secured European Union funding under the
Financial Management Improvement Programme III (FMIP III). The quantum of the funding
has not yet been confirmed, but it will be more than R30 million. This funding will be used to
secure experts to assist with education and health sector reviews in 2013/14 and beyond,
as well as assisting with a system for health patient fee collections (discussed in more detail
later). Sector reviews are an important element of public finance, as they deal with the
question of whether value for money is being achieved with the expenditure incurred.
Education and Health were chosen because, together, they account for about 73 per cent of
the provincial budget.
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:
• A new internal control unit was created to prevent, detect and correct any internal control
deficiencies.
• The unit has reviewed Provincial Treasury’s Fraud Prevention plan, Whistle Blowing policy,
and Fraud policy. The unit also conducted workshops to create awareness on fraud and
fraud prevention.
• The unit was also responsible for the reviewing of all invoices produced for payment by
external service providers. This has ensured that all SCM related deviations are timeously
detected and corrected where necessary.
• The CFO office has facilitated the departmental audit and received four clean audits in the
past 4 years, and it is optimistic that the fifth clean audit will be achieved for the 2013/14
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.
The office reviewed the asset management policy to include an aspect on the restrictions in the
acquisition of assets. This entailed limitation in certain categories of assets to SMS members
which translate to savings and restrictions on unnecessary asset acquisition.
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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
Some achievements for 2012/13 are as follows:
• During 2012/13, 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, Dr ZL Mkhize, during the 2012 HR Convention
for the “Best serving Human Resources” in the Province of KwaZulu-Natal.
• The unit has successfully implemented most 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. In all departmental activities, the element of wellness has
been incorporated in an attempt to instill a healthy lifestyle in our employees.
• The unit made substantial progress in the filling of all funded vacant posts within the
department, reducing the vacancy rate from 32 per cent to 15 per cent and, in terms of the
employment of women at management level, there has been a significant improvement from
27.09 per cent to 37 per cent, and continuous efforts, such as targeted advertising, etc. are
embarked upon in an attempt to meet the national target of 50 per cent women at
management level. To this end, the unit also developed fully achievable strategies to ensure
the successful implementation of the HOD’s 8-Principle Plan of Action for Women
Empowerment, and ensured that all policies are aligned to gender mainstreaming initiatives.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 17 -
• The unit successfully implemented succession planning within the department to increase
its pool of female candidates in respect of posts with scarce skills, such as the Provincial
Accountant-General, as well as the Senior Manager-Banking.
• The Wellness Clinic has been a huge success, by instilling healthy lifestyle practices in staff.
There has been a 25 per cent overall increase in the number of officials’ testing in respect of
HIV, glucose levels, cholesterol and blood pressure.
• In an attempt to improve on meeting the National targets in respect of the employment of
two per cent disabled staff, the unit included disabled female learners into the Take a Girl
Child to Work initiative, and also carried out a full disability audit on all employees of the
department, as a step towards encouraging officials to disclose their disability status, if
applicable. The current intake of interns is also inclusive of four disabled graduates.
• A further initiative to develop previously disadvantaged youth as well as promote job
creation is Provincial Treasury’s partnership with SAICA on the Thuthuka Bursary Fund,
where Treasury is sponsoring 100 previously disadvantaged students studying to become
Chartered Accountants. This will ensure the necessary skills within departments,
municipalities and entities, assisting with prudent financial and fiscal management. The
department has budgeted R16 million over the next four years for this project.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 18 -
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
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr Actual
Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
APP
Actual output
2012/13
Minutes of meetings
scheduled, attended
75% of scheduled
Budget Council
Meetings – National
1 0 1 0 1 0 1 1 4 1
Minutes of meetings
scheduled, attended
90% attendance of
Provincial Cabinet
and Legislature
meetings scheduled
10 23 10 17 10 13 10 18 40 71
Publications No. of publications 1 13 1 12 1 10 1 12 4 47
Free publicity(news
bulletins and articles)
Free publicity (news
bulletins and
articles)
20 21 20 20 20 30 30 30 90 101
Media briefings Media briefings on
service delivery
1 1 1 1 1 1 1 1 4 4
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
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KZN Provincial Treasury Annual Report - 19 -
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
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr Actual
Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
APP
Actual output
2012/13
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 1 1 1 1 1 1 1 4 quarterly
budget
performance
reports to
Cabinet
4 quarterly
budget
performance
reports to
Cabinet
Tabling of MTEF,
Adjustments Budget,
in terms of PFMA at
the Legislature and
Cabinet
Tabling of MTEF,
Adjustments Budget,
in terms of PFMA at
the Legislature and
Cabinet
N/A N/A N/A N/A 1 1 1 1 2 2
Attendance of all
Budget Council and
Lekgotla meetings
schedules
Attendance of all
Budget Council and
Lekgotla meetings
schedules
1 1 1 1 1 1 2 2 5 meetings per
financial year
5 meetings
per financial
year
Render Special
Project support
services to the MEC
and department
Render IGR support
services to the MEC
and department
3 3 3 3 3 3 3 3 12 Cabinet
Economic and
Technical
Cluster
meetings and
reports
12 Cabinet
Economic and
Technical
Cluster
meetings and
reports
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
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KZN Provincial Treasury Annual Report - 20 -
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
1st QtrPlanned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr Actual
Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr
Planned Output
4th Qtr Actual
Output
Target for
2012/13 as per
APP
Actual output
2012/13
Financial
Management Support
plan
Compile budget
submission and
strategic planning
documents (EPRE &
APP)
N/A N/A 1 1 1 1 2 2 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 5 4 5 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
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
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KZN Provincial Treasury Annual Report - 21 -
1.4 HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT:
• To provide HR services (to provide advisory and consultancy support throughout the department to help achieve organisational improvement).
• To ensure that the department fulfils its statutory and audit requirements in managing HR processes and procedures. This would be achieved in part of assisting in ensuring
that the staff are appropriately skilled to be able to provide high quality services to the communities serviced.
• To create a healthy workforce through the provision of EAP services enabling staff to contribute to the objectives of the department to the best of their ability.
Programme/ Sub-
programme output
Performance
Measures
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr Actual
Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th QtrActual
Output
Target for
2012/13 as
per APP
Actual output
2012/13
HR charter % OF HR services
completed as per
HR Charter
100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
HR service seminars Number of HR
seminars
2 sessions 3 sessions 2 sessions 3 sessions 2 sessions 2 sessions 2 sessions 4 sessions 8 sessions 12 sessions
HR seminars (EWP) Number of EWP
seminars
1 session 2 information
seminars
1 session 4 information
seminars
1 session 2 information
seminars
1 session 3 sessions 4 information
seminars
11 information
seminars
HR policy sessions Number of policies
developed /
reviewed and
seminars conducted
2 policies and 2
seminars
4 policies and
3 seminars
2 policies and 2
seminars
3 policies and 3
seminars
2 policies and 2
seminars
4 policies and 2
seminars
2 policies and 2
seminars
4 policies and 4
seminars
8 policies
and 8
seminars
15 policies and
12 seminars
Human Resource,
Workplace Skills and
Employment Equity
Plans
% achieved from the
Human Resource
Plan, and Workplace
Skills Plan
100% 92% and
83.15%
100% 93% and 92.60% 100% 91% and 92% 100% 92% and 74% 100% 92% and 85%
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
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
implementation 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.
Service Delivery Achievements:
Economic Analysis
The Economic Analysis unit determines and evaluates the economic parameters and socio-economic
imperatives that inform provincial resource allocation. The unit also supports municipalities through
regional economic analysis. The unit plays a significant role in the economic development of the
province through its involvement with other departments in, inter alia, the following projects:
• Publication of the first ever provincial Socio-Economic Review (SERO).
• 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 district and local municipalities.
• Successful participation in various Integrated Development Plan (IDP) workshops and meetings.
• The unit has been instrumental in the successful upgrade and development of various regional
airports in KZN (total value of R82.500 million over a three-year period), namely:
o Pietermaritzburg airport – The success of the PMB airport is widely acknowledged and
recognised. Passenger numbers increased from 59 000 in 2010 to over 103 000 in 2012. This
is a massive increase over a very short period of time. Flight diversions decreased from a
monthly average of 9 in 2009 to 0.3 in 2012. The total revenue generated increased from less
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
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KZN Provincial Treasury Annual Report - 23 -
than R1 million in 2009 to over R2.4 million in 2012. The airport incurred a net loss of over
R2.5 million in 2009, compared to a surplus of R600 000 during 2012.
o Prince Mangosuthu Buthelezi airport – Major successes were achieved at this airport. The
upgrades and additions were done on budget and on time. The new tourism hub is 90 per
cent complete and is a direct spin-off of the airport success. The Ulundi air route is growing
from strength to strength, with passenger numbers reaching over 100 for the first time during
April 2013. Estimated savings to the provincial fiscus are R360 000 from May 2012 to
December 2012 as a result of government officials opting to fly rather than drive to Ulundi.
o Improvements were also made in respect of the Richards Bay, Margate and Mkuze airports.
• Treasury also very successfully supported the inaugural KZN Winter Air Tour during 2012/13.
These are a series of 6 consecutive airshows, with the aim of taking aviation to the people. A
total audience of 55 000 attended these shows.
• Treasury hosted the first ever KZN Funding Fair.
Infrastructure
Provincial Treasury established a panel of infrastructure experts during 2011/12, covering all
disciplines in the planning, designing, construction, monitoring and maintenance of infrastructure
projects. This is a transversal panel and is available for utilisation by all departments and
municipalities under the supervision of Treasury. As at the end of April 2013, approximately 44 built
environment specialists were deployed to assist in unblocking various infrastructure projects, and
further allocations are in the process of being finalised. Major achievements include the unlocking of
about R22 million in Nongoma relating to the taxi rank and road upgrade, development of a supplier
database at uPhongolo, publishing and evaluation of four water related tenders at Uthukela,
establishment of an infrastructure audit team at eDumbe, implementation of the Margate urban
renewal programme, to name a few. The deployment of the Infrastructure “Crack” Team has received
a lot of praise, not just from municipalities, but also from communities and businesses.
Through this exercise, Treasury has expertise readily available to assist and ensure value for money
and on-budget spending of the infrastructure allocations. In terms of the infrastructure functions, the
following progress was made:
• Cabinet approval for the implementation of the Infrastructure Delivery Management System
(IDMS) in KZN was received.
• Successful participation and roll-out of the Infrastructure Delivery Improvement Programme
(IDIP) in Health, Education, Public Works and Provincial Treasury.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 24 -
• Participation in National Treasury’s pilot IDMS training at the University of Pretoria.
• Support to National Treasury and eThekwini Metro in piloting IDMS implementation for
municipalities.
• Overall improvement in the implementation of IDIP in KZN as stated in the December 2012 IDIP
Quality Assurance Report.
• Provincial evaluation and feedback sessions (first ever) of the User Asset Management reports
of the various departments.
• Active involvement in the provincial GIAMA Forum.
• Successful training on the Infrastructure Report Management (IRM) tool in the Departments of
Education, Health and Transport.
• The Infrastructure Crack Team was successfully deployed to the Departments of Agriculture,
Environmental Affairs and Rural Development, Public Works, Education, COGTA, Human
Settlements, Treasury, and the public entities ADA and Ezemvelo KZN Wildlife (total value of
R14 million).
• The Infrastructure Crack Team was successfully deployed to the Msunduzi, Nongoma,
uPhongolo, Edumbe, Uthukela, Mtubatuba, Greater Kokstad, Hibiscus Coast, Hlabisa,
Abaqulusi, Umkhanyakude and Endumeni municipalities (total value of R7 million).
• Successful partnership with Department of Public Works in the Provincial Infrastructure Co-
Ordination Workgroup.
Public Finance
The functions of the Public Finance unit are largely process driven and are governed by various
legislative mandates. As such, the functions and work performed often remain largely unchanged
from year to year in terms of the processes that need to be undertaken, such as preparation of the
annual MTEF budget for KwaZulu-Natal, preparation of the Adjustments Budget, as well as revenue
and expenditure monitoring of provincial departments and public entities.
Some of the achievements of the Public Finance unit are as follows:
• 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.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 25 -
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 gained momentum in 2012/13,
with quarterly budget performance reports also being prepared for these entities and bilaterals
being held with them for the first time.
• The 2012/13 Adjustments Budget for KZN was tabled in the Legislature on 22 November 2012.
• The 2013/14 MTEF budget for KZN was tabled in the Legislature on 12 March 2013. This
process was a difficult one for KZN, as the province was negatively affected by the 2011 Census
data update of the equitable share formula, which saw the province losing R6.772 billion over the
2013/14 MTEF. Provinces like the Western Cape and Gauteng were found to be proportionately
more populous than KZN, and were therefore on the receiving end of these funds. This
prompted Treasury to expand the cost-cutting measures which were first implemented in
2009/10. The expanded cost-cutting measures were submitted to Cabinet and were adopted for
immediate implementation in December 2012.
• Provincial Treasury has ensured 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.
• Key focus was placed on the enhancement of revenue from patient fees by the Department of
Health, and a position paper in this regard is being drafted that identifies areas of weakness, and
looks at providing possible solutions. The biggest challenge remains that most of the health
institutions are on manual systems that leave a lot to be desired in terms of efficiency.
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 2012/13, 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 2012/13, with the province under-spending slightly by some R539 million (under-spending
of 0.6 per cent), according to unaudited numbers.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 26 -
• 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.
• KwaZulu-Natal has become an example to all other provinces when it comes to these fiscal
austerity measures, with the province being hailed from all quarters for the success it has
achieved in such a short space of time.
• Of the 16 provincial departments, only 3 (namely the Provincial Legislature, Health and
Transport) over-spent their budget allocations, while the other 13 under-spent. This over-
expenditure was fairly minimal, though, when viewed as a proportion of these departments’
budget allocations. In fact, two of these departments over-spent their allocation by between 0.4
and 0.5 per cent (Health and Provincial Legislature, respectively), and Transport by 0.1 per cent.
• As a result, the province remains with a healthy cash positive bank balance. A report on the
provincial bank balance is also submitted to Cabinet on a monthly basis, 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
The Municipal Finance unit focused on providing assistance to municipalities in compliance with the
provisions of the MFMA. Attention was focused on:
• Assisting in preparation and monitoring of budgets in all 58 municipalities delegated to KZN.
• The Municipal Support Programme (MSP) concentrates on providing on-site support in specific
areas of financial management at selected municipalities:
o Eight municipalities, namely uMngeni, uMtshezi, Uthukela District, Nquthu, uPhongolo,
Nongoma, Ulundi and Mfolozi, were supported in terms of cashflow management. We
introduced and instituted a cashflow management process to assist municipalities in
controlling the use of their cash resources, being aware of their cash situation at all times
and ensuring sustainability.
o Nine municipalities were assisted in terms of internal control enhancement which entails
introducing and instituting improvements in internal controls relating to financial processes
and in the IT environment. The municipalities supported were Ezinqoleni, uMngeni,
uThukela District, Endumeni, Newcastle, Ulundi, Nquthu, Mthonjaneni and KwaDukuza.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 27 -
o Thirteen municipalities were assisted to prepare and/or review their 2011/12 Annual
Financial Statements to meet the deadline for submission of the AFS for audit. The
municipalities assisted were uMngeni, Richmond, uMtshezi, Uthukela District, Nquthu,
Newcastle, Amajuba District, uPhongolo, Nongoma, Mtubatuba, Ingwe, Ubuhlebezwe and
Sisonke District. All of these AFS were completed and the deadline for submission to the
Auditor-General was met.
o To assist municipalities with regard to challenges associated with the existing competency
levels among their existing staff complement, resources were deployed to four
municipalities, namely Umvoti, Mtubatuba, Mthonjaneni and Ilembe District.
o In addition to this support, further support was provided to the various municipalities by the
Infrastructure Crack Team, SCM, Internal Audit and Financial Reporting.
• All 58 delegated municipalities submitted their 2012/13 draft budgets to Provincial Treasury. Of
the 58 draft budgets received, 57 were assessed by Provincial Treasury. The one remaining
budget could not be assessed as the municipality had submitted incomplete information.
• Bilateral meetings were conducted with 27 municipalities to discuss Provincial Treasury’s
assessment of the 2012/13 draft MTREF budget.
• A high level assessment was also conducted on the 2012/13 final budgets of all 58 delegated
municipalities in order to assess whether municipalities have considered the comments and
recommendations made by Provincial Treasury on the draft budgets before tabled in Council.
• Technical support with regard to the preparation of the 2013/14 budget in line with Municipal
Budget Reporting Regulations formats is being provided to all delegated municipalities on an
ongoing basis. The Unit, jointly with National Treasury, hosted workshops for all municipal
finance officials in KZN, on 22 - 23 November, 6 - 7 December 2012 and 1 February 2013, to
empower them to compile credible budgets. These workshops were attended by 132, 151 and
131 delegates, respectively.
• All 58 delegated municipalities submitted their Mid-Year Budget and Performance Assessment
Reports. Assessments were conducted on 54 of 58 municipalities. Municipal visits/engagements
on the findings were conducted during February and March 2013 on 49 municipalities.
• Provincial Treasury performed an assessment of the 2012/13 Adjustments Budget of all
municipalities, with the exception of uMshwathi Municipality as they did not table and submit
their 2012/13 Adjustments Budget in the prescribed Schedule B, therefore no assessment could
be performed.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 28 -
• 57 of the 58 delegated municipalities tabled their draft 2013/14 budgets in Council by 31 March
2013 as required by Section 16(2) of the MFMA. One municipality (Ndwedwe Municipality) did
not comply with this section of the Act and the MEC for Finance sent a non-compliance letter to
this municipality.
• The Unit participated in the MEC for Finance’s district workshops and co-ordinated the
presentations by various units within Provincial Treasury. The main objectives of these
workshops were:
o To engage the municipal political leadership to impart the relevant knowledge on how to
engage with financial and other reports and play their oversight roles effectively without
interfering with administrative functions.
o To clarify the roles and responsibilities of Provincial Treasury in the municipalities.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 29 -
Programme Two: Fiscal Resource Management
2.2 .1ECONOMIC ANALYSIS: To determine and evaluate economic parameters and socio-economic imperatives to inform provincial and local resource allocation.
Programme/
Sub-programme
output
Performance
Measures
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr Actual
Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as
per APP
Actual output
2012/13
Publication/
report
To provide an
economic analysis
for the province
3 socio-economic
profiles
3 economic
profiles, 2
presentations
3 socio-economic
profiles, PERO
and input towards
Municipal Finance
close-out report
3 economic
profiles, 1
presentation,
SERO draft,
Municipal Finance
close-out report.
Operation
SukumaSakhe
report
3 district socio-
economic profiles
3 district socio-
economic profiles,
1 presentation:
Umzinyathi
District
1 district socio-
economic profiles
Uthukela
(SERO)
10 district
socio-
economic
profiles
(PERO)
10 district profiles
and SERO, 4
presentations, 1
OSS report and 1
input into
municipal close-
out report
Socio-economic
output chapter,
budget
supplement, and
budget highlights
To provide input to
the Overview of
Provincial Revenue
Expenditure (OPRE)
N/A N/A N/A N/A N/A N/A 1 1 Input into
OPRE on
time for
tabling
1
Research papers To provide quality
research for
regional policy
analysis
N/A 2 abstracts
submitted. 1
questionnaire
compiled
N/A N/A N/A Mini research on
uMgungundlovu
as metro
1 1 Writing of
research
paper
2 abstracts
submitted, 1
questionnaire
compiled, mini
research on
uMgungundlovu
as metro, and
research papers
Updated
databese
To update and
maintain the KZN
statistic database
N/A Subscription with
Global Insight has
been reviewed
and submitted
N/A N/A N/A N/A Update Global
Insight and KZN
Barometer
1 Updating
subscription
with sources
of data
Update Global
Insight and
subscribed with
KZN Barometer
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 30 -
2.2.2INFRASTRUCTURE: To Ensure efficient infrastructure planning and management in the province.
Programme/ Sub-
programme output
Performance
Measures
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr Actual
Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
(APP)
Actual output
2012/13
Provincial
Infrastructure Plan
(PIP)
Timely completion of
PIP
N/A N/A 1 0 N/A N/A N/A N/A Submit PIP to NT
by 28th February
2013
0
Co-ordinate
implementation of the
IDIP in the province
No. of departments
for implementation
of the IDIP in the
province
4 4 4 4 4 4 4 4 IDIP to continue
in Education,
Public Works and
Health. IDIP
introduced at
Human Settlemts,
Sport & Recr.,
Arts & Culture
4
Compliance with
infrastructure budget
and delivery plans
Compliance with
infrastructure budget
and delivery plans
3 3 3 3 3 3 3 3 12 quarterly
reports
12 quarterly
reports
1 0 1 0 1 0 1 0 4 project close-
out report
0
Conduct quarterly
assessments on
infrastructure delivery
in KZN
Conduct quarterly
assessments on
infrastructure
delivery in KZN
36 9 36 0 36 39 36 5 Conduct 144 site
visits
53
Estimates of
Provincial Revenue
and Expenditure
(EPRE) previously
Main Budget
Statement
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 Quarterly reports 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 31 -
2.3.1PUBLIC 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
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr Actual
Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
APP
Actual
output
2012/13
No. of chapters in
MTEC report
No. of chapters in
MTEC report
N/A N/A 16 16 N/A N/A N/A N/A 16 chapters
completed 1
day before
MTEC as per
budget process
timetable
16
Estimates of
Provincial Revenue
and Expenditure
(EPRE) previously
Main Budget
Statement
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 EPRE on time
for tabling
1
Adjusted Estimates of
Provincial Revenue
and Expenditure
(AEPRE) previously
Adjusted Budget
Statement
Adjusted Estimates of
Provincial Revenue
and Expenditure
(AEPRE) previously
Adjusted Budget
Statement
N/A N/A N/A N/A 1 1 N/A N/A AEPRE on time
for tabling
1
Section 32 report
(Monthly Provincial
IYM report)
Section 32 report
(Monthly Provincial
IYM report)
3 3 3 3 3 3 3 3 12 reports per
annum
(submitted to
NT by the 22nd
of each month)
12
Quarterly performance
reports for provincial
departments
Quarterly performance
reports for provincial
departments
1 1 1 1 1 1 1 0 4 reports per
annum
(completed one
month after end
of each quarter)
3
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 32 -
2.3.2PUBLIC FINANCE: PROVINCIAL OWN REVENUE: Promote optimal and sustainable revenue generation and collection by provincial departments and public entities.
Programme/ Sub-
programme output
Performance
Measures
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr Actual
Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
APP
Actual
output
2012/13
Conduct quarterly
Provincial Revenue
Forums
Conduct quarterly
Provincial Revenue
Forums
1 1 1 1 1 1 1 1 4 forums per
year
4
Monitoring of
departmental revenue
collection
Monitoring of
departmental
revenue collection
1 1 1 1 1 1 1 0 Quarterly
reports
3
Revenue input into
Overview of Provincial
Revenue and
Expenditure (OPRE)
and Estimates of
Provincial Revenue
and Expenditure
(EPRE)
Revenue input into
Overview of
Provincial Revenue
and Expenditure
(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
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 33 -
2.3.3PUBLIC FINANCE: SPECIAL ADVISORY SUPPORT SERVICES: To promote effective and optimal financial resource allocation for provincial government (including public
entities).
Programme/ Sub-
programme output
Performance
Measures
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr Actual
Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
APP
Actual
output
2012/13
Input into the revision
and maintenance of
DORA
Input into the
revision and
maintenance of
DORA
Submit input by
due date
N/A N/A N/A Submit input by
due date
Input submitted
by due date
Submit input by
due date
N/A Input to be
submitted by
due date
Submitted by
due date
Institutionalise
framework for the
monitoring of
provincial public
entities
Institutionalise
framework for the
monitoring of
provincial public
entities
Close-out report
one month after
end of financial
year
N/A N/A N/A Mid-year report
on evaluation of
budget
submissions
Mid-year
budget
performance
report prepared
N/A N/A Implement
monitoring tool
and report bi-
annually for 10
public entities
Close-out
report one
month after
end of
financial year
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 34 -
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
1st Qtr Planned
Output
1st QtrActual
Output
2nd Qtr Planned
Output
2nd Qtr Actual
Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
APP
Actual output
2012/13
Section 71 (6)report
(Monthly municipal
IYM report)
Section 71(6) report
within prescribed
timeframe
3 reports 3 reports 3 reports 3 reports 3 reports 3 reports 3 reports 3 report 12 Section 71
(6) reports, 22
working days
after end of
each month
12 reports
Section 71 (7)
quarterly budget
performance reports
for local government
and Legislature
Section 71(7)
quarterly budget
performance reports
1 report Report onquarter
4 of municipal f.y.
due in August
(awaiting
publication figures
from NT)
1 report Quarterly
report for
quarter 1 (July,
August,
September) is
awaiting
publication
figures
1 report Quarterly
report for
quarter 2
(October,
November and
December) is
awaiting
publication
figures
1 report Quarterly
report for
quarter 3
(January,
February,
March) is
awaiting
publication
figures
4 section 71 (7)
quarterly
budget
performance
reports, 45
days after end
of quarter
4 reports
Municipalities
supported by the
Municipal Support
Programme (MSP
No. of municipalities
supported by MSP
10 municipalities 10 municipalities -
Endumeni,
Ezinqoleni,
Nquthu, uMngeni,
uMtshezi,
Uthukela DM,
Nongoma,
uPhongolo,
Ulundi and
Newcastle
municipalities
6 municipalities 8 municipalities 6 municipalities 6 municipalities 6 municipalities 12 municipalities 10 municipalities
to be supported
through MSP
12 municipalities
supported
through MSP
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 35 -
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 StrategicObjectives 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 PPPproject 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.
Service Delivery Achievements:
Assets and Liabilities Management
During 2012/13, a number of site visits were conducted to all provincial departments as an on-going
support initiative to assist with enhancing Asset Management in 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 introduced a new Electronic System that improved the method of BAS
payments exceeding the limit of R1 million. This enabled the department to save on bank charges
per transaction and limit the time preparing payment requests to the Official Banker.
A new electronic system was implemented to effect payments for the Department of Local
Government and Traditional Affairs’ Tribal Levy and Trust Accounts. This system replaced all the
cheque payments.
An investigation was done on all petty cash accounts and a number of accounts were closed that
were not used on a frequent basis. Departments were also requested to reduce the authorised limits
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 36 -
on those petty cash accounts that were exceptionally high. This enabled the department to save on
bank charges on those accounts closed, and minimise the possibility of fraud and the misuse of
funds on those accounts with exceptionally high limits.
Due to support given and liaising with departments on a regular basis, departments are able to
manage the clearing of the banking suspense accounts before the month-end closure.
Due to the regular interaction with municipalities, there has been a noteworthy improvement of
reports submitted to Provincial Treasury.
The Tax section provided a training and support function to 16 departments to ensure the necessary
transfer of tax knowledge and skills within the province. Site visits were conducted, and training gaps
identified and followed up with the necessary training to all 16 provincial departments. The 2013
annual tax reconciliations were submitted to SARS before the deadline for each department. All risks
identified by Treasury on a quarterly basis were followed up with the individual departments, to
ensure compliance with the tax legislation.
Public Private Partnerships (PPPs)
The Public Private Partnership unit 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 the following provincial departments:
• KZN Department of Health in developing the exit strategy for the Inkosi Albert Luthuli Central
Hospital concession period, and in investigating possibly procuring the New King Edward
Academic Hospital as a PPP project.
• KZN Department of Public Works in investigating the possibility of procuring the Office Park for
KZN provincial departments as a 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. The department is also exploring the
possibility of including three additional nodes (Amajuba, Sisonke and Umzinyathi).
The unit is also assisting the following municipalities:
• Ilembe District Municipality in its Water and Sanitation concession contract management.
• KwaDukuza Local Municipality in its investigation on Solid Waste Management, as required by
Section 78 of the Municipal Systems Act (MSA) investigation.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
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KZN Provincial Treasury Annual Report - 37 -
• Newcastle Local Municipality in its Alternative Technology and Waste Reduction investigation,
as required by Section 120 of the MFMA.
• 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 negotiating
development of a prime section of beach front land situated in the town of Umtentweni with the
preferred bidder.
The achievements of the PPP unit are:
• Framework of the exit strategy for the Inkosi Albert Luthuli Central Hospital was developed.
• First draft of the needs analysis investigation for the New King Edward Academic Hospital was
finalised and presented to all stakeholders.
• First draft of the needs analysis investigation for the KZN Department of Education schools
project for the four pilot nodes, i.e. Ilembe, Uthukela, Ugu and uMgungundlovu was finalised.
• Third review of the concession agreement and development of the five-year implementation plan
for the period 2014 - 2019 for the Ilembe District Municipality was initiated.
The commitments of the PPP unit are:
• Appointment of a service provider for the development of the exit strategy of Inkosi Albert Luthuli
Central Hospital.
• Finalisation of the feasibility study process for the schools project (Department of Education).
• Finalisation of the feasibility study for the Office Park.
• Finalisation of the third review of the concession agreement and five-year implementation plan
for the period 2014 – 2019 of the Ilembe concession contract.
Supply Chain Management (SCM)
• Serious lack of capacity in the SCM components of the Departments of Social Development and
Sport and Recreation, and the Uthukela District Municipality led to an intervention by Treasury’s
SCM unit. The unit provided direct assistance by managing the procurement in these
institutions. The Social Development intervention was successfully completed in December
2012. The interventions at the Department of Sport and Recreation and the Uthukela District
Municipality are still ongoing, as Treasury is assisting with the required reforms.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 38 -
• Provincial Treasury undertook comprehensive SCM compliance assessments of all provincial
departments and municipalities.
• Treasury successfully completed Phase 2 of the Contract Management pilot project in the
following departments and municipalities: Human Settlements, Public Works, Transport,
Agriculture, Environmental Affairs and Rural Development, Education, COGTA, Hibiscus Coast,
Uthukela and Msunduzi. Phase 2 of the Contract Management pilot project comprises
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 2 also involved the drafting of standardised
contracts for 17 items frequently purchased by government across the spectrum.
• As an additional control measure in the local government sphere, the provincial SCM unit
established Municipal Bid Appeals Tribunals in all 10 districts, which will serve as impartial
bodies to adjudicate appeals against municipalities relating to awards of bids. The members of
the District Tribunals have been appointed, and Treasury is ensuring that all municipalities’ SCM
policies are updated and amended to facilitate the implementation of this system.
• Provincial Treasury’s SCM unit recently appointed a panel of BEE verification agencies which
will assist emerging companies registered in the KZN Provincial Suppliers’ Database in attaining
BEE verification status, as required by the PPPFA.
• Provincial Treasury, in its effort to introduce an E-procurement tool, which will assist in limiting
instances of fraud and corruption within the SCM process, approached the market for a suitable
E-procurement system. The procurement process is currently at bid evaluation stage.
• An automated system was implemented in November 2012 to improve the overall performance
of the Bid Appeals Tribunal secretariat.The table below gives a summary of appeals in 2012/13:
Table: Number of appeals dealt with in 2012/13 and other information on the state of Provincial appeals
Departments Appeals Status
Appeals
Received Withdrawn Upheld Dismissed Re-evaluate Pending
Late
Appeals
Struck off
the Roll
Awarded to
Appallent Adjourned
Health 146 94 8 11 2 19 5 5 2 -
Transport 52 27 3 9 3 2 1 1 1 5
Public Works 22 4 2 5 2 6 2 - - 1
Education 11 5 1 1 2 - 1 - 1 -
Agric, Env. Affairs & Rural Dev 7 6 - - - - 1 - - -
Total 238 136 14 26 9 27 10 6 4 6
Key:
Withdrawn Appelant withdraws appeals after receiving reasons for non-award from that Department
Upheld The appeal was upheld by the Tribunal
Dismissed The appeal was dismissed by the Tribunal
Re-evaluate The Tribunal recommends that the Department re-evaluates the bid
Pending Appeal is pending for various reasons
Late appeals Appeals received after the 5-day appeals period and the file is therefore closed
Struck off the roll Appeal is dismissed at the hearing
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 39 -
Financial Reporting
1. 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:
• An analysis of basic financial management processes and procedures.
• Identification of audit risk areas and key internal control measures to mitigate potential risks.
• Sustainable skills transfer, training, and the monitoring of key controls and procedures to
address audit risks and key control deviations.
This initiative has also been extended to 15 municipalities in the 2013/14 financial year:
Sisonke Ntambanana Ugu Ilembe Umgungundlovu Umkhanyakude
Sisonke Ntambanana Umdoni Kwa Dukuza Richmond Umkhanyakude
uBuhlebezwe - Umzumbe Mandeni uMngeni uMhlabuyalingana
Greater Kokstad - - - Umshwathi -
KwaSani - - - - -
Districts
This will be implemented in conjunction with our electronic tracking tool and audit working paper file.
The overarching concept of these tools is to monitor key financial management processes and
reconciliations. This should enable CFOs and finance staff to flag risks and address errors timeously.
2. Assistance to departments
Treasury assisted the following departments with resolving key prior year audit issues to ensure an
unqualified audit opinion in 2011/12:
• Department of Public Works (Immovable assets).
• Royal Household (Annual Financial Statements and asset management).
• Social Development (asset management).
3. Reduction in government debt to municipalities
Treasury continues to make inroads in arrear government debt owed to municipalities. The provincial
government debt of R466 million in June 2010 has been reduced to R121.229 million, of which some
R43 million is current. The remaining R78 million relates to rates levied against Human Settlements
and services to Section 21 schools. This represents a 74 per cent reduction since 2010.
Mar-13 Nov-12 Jun-12 Mar-11 Jun-10
Provincial Departments 121,229 132,364 139,846 175,298 466,774
R 000's
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 40 -
The current task team will concentrate on the improvement of our systems, as well as the billing
systems of certain municipalities in 2013/14.
4. Payment of suppliers within 30 days
Departments have performed particularly well in this regard (93.5 per cent payment of invoices within
60 days and 80 per cent payment of invoices within 30 days). In comparison, it appears that, in the
private sector in KZN, 57 per cent of invoices are paid in 60 days, with the remainder happening
after 60 days.
Figure 1. Provincial performance in terms of payi ng suppliers
5. Operation “SikhokhaNgesikhathi – We pay on Time”
Government is committed to pay all suppliers within 30 days, and therefore Provincial Treasury set
up a system to deal with complaints from service providers regarding the non-payment or late
payment of accounts by provincial departments where such still exist. On 1 September 2011,
Operation “SikhokhaNgesikhathi – We Pay on Time” was launched.
• Since then, a total of 189 invoices were queried by 83 service providers, amounting to
R45 million.
• 136 invoices were resolved for 61 service providers amounting to R33 million.
Provincial Treasuryhas furthermore established a liaison mechanism with organised business to
assist with communication with service providers regarding the facility, but also to create awareness
of the need to follow due process such as the necessity to obtain an official order for services.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 41 -
6. Financial Delegations
In line with Presidential Outcome 12 relating to financial management in municipalities and in
collaboration with National Treasury, a MFMA System of Delegations (SoD) template for
implementation in municipalities was developed to address all the challenges that were identified
during the review of the SoDs for the 58 delegated municipalities. The template was designed in
accordance with the following five criteria:
• Annual review and adoption by Municipal Council.
• MFMA sub-delegations.
• Authorisation and signatories on MFMA delegations.
• General limitations on MFMA delegations.
• Comprehensive MFMA delegations.
Norms and Standards
1. Policy assistance for department and public enti ties
Fourteen financial management practice notes for departments were reviewed according to the
review schedule that is compiled on an annual basis by the unit. A matter that required urgent
attention was the amendment of the practice note on ‘Unauthorised, Irregular and Fruitless and
Wasteful Expenditure’, with specific regard to process flows and condonation of irregular
expenditure. Input is awaited from National Treasury before finalising amendment to practice note.
Subsequent to a request for assistance from the Chief Financial Officer of the KZN Sharks Board,
two policies were developed and implemented: Revenue Management and Asset Management.
This included six new revenue procedures which were developed in consultation with the operational
staff of the KZN Sharks Board to ensure the effective customisation of these policies and procedures
to suit their unique circumstances.
2. Policy assistance for municipalities and municip al entities
The support that is provided to municipalities is informed by the annual survey that is conducted at
the beginning of the financial year, as well as specific requests from municipalities and municipal
entities. Assistance rendered included the development of two new finance related policies for
Umvoti Municipality and Umhlosinga Development Agency.
The assessment of four municipalities was conducted, including a specific request for a concentrated
review of seven policies from the Chief Financial Officer of Umuziwabantu Municipality due to the
limited capacity of the municipality’s finance department.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 42 -
3. Monitoring, compliance and evaluation
The monitoring compliance and evaluation system initiated and driven by the unit resulted in the
further refinement of the monitoring exercise with feedback reports issued to departments. These
reports detailed the outcomes achieved subsequent to the implementation of proposed
recommendations to address previously identified deviations and non-compliance. The unit
facilitated the completion of the 2012/13 review of the National Treasury Financial Management
Capability Maturity Model (FMCMM). The findings were analysed and assessment reports issued,
detailing all findings, associated risks and recommendations and/or controls to be implemented to
achieve capability maturity control level 3 (Compliance and Control) within the various financial
management focus areas. In addition, action plans were compiled and departments were requested
to indicate what action will be taken to address the identified weaknesses and the deadline by which
this will be achieved, which will be followed-up to ensure compliance.
4. System of Delegations
The unit provided comprehensive support in customising the financial delegations as per the
template that was rolled out to all 58 municipalities in 2011. Close support was provided to 16
municipalities to ensure that their councillors, municipal managers, chief financial officers and
officials fully comprehend their roles relating to delegated functions, and to ensure that delegations
are in line with organograms. The unit also ensured that the financial delegations are comprehensive
enough to address weaknesses identified during the initial review of all financial delegations in KZN.
Supporting and Interlinked Financial Systems
Treasury made significant progress in the area of IT and Systems. A notable achievement is the
sound state of IT governance in Treasury, with only two audit findings reported in the 2013 A-G
report. Through an effective IT Steering Committee, the following key projects were completed:
• The Bid Appeals Tribunal System was automated to improve the management of bid appeals.
• User requirements for the Forensic Case Management System were completed. The
development of the system is scheduled for 2013/14.
• The Biometric Access Control System underwent enhancements to address the findings and
recommendations of an audit. This system continues to provide additional security, resulting in
no reported system related fraud on BAS and PERSAL in KZN since implementation.
• Treasury also commenced with implementing an electronic document and records management
system to improve the efficiency of storage, search and retrieval of documents. The system
addresses legal obligations to comply with National Archives and Record Services Act of 1996.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 43 -
Programme Three: Financial Management
3.1 ASSETS AND LIABILITY MANAGEMENT:
• To ensure provision of effective and efficient transversal advice,guidance and support and monitoring compliance to Asset Management prescripts in 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
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr Actual
Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
APP
Actual output
2012/13
Provide Guidance/
advisory services to
depts. iro pay roll
tax process
Provide guidance and
support iro payroll
functions to KZN
departments
16 depts. 16 depts. 16 depts. 16 depts. 16 depts. 16 depts. 16 depts. 16 depts. 16 depts. per
quarter
16 depts. per
quarter
Inform depts. on tax
legislation and
regulations iro
payroll tax
Conduct Tax
Information Seminar
annually
Nil Nil 2 sessions 2 sessions Nil Nil Nil Nil 2 sessions 2 sessions
Inform depts. on tax
legislation and
regulations
Quarterly risk analysis
per department 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
departments on the
status of bank related
suspense accounts
16 reports on
status of
suspense
accounts
16 reports on
status of
suspense
accounts
16 reports on
status of
suspense
accounts
16 reports on
status of
suspense
accounts
16 reports on
status of
suspense
accounts
16 reports on
status of
suspense
accounts
16 reports on
status of
suspense
accounts
16 reports on
status of
suspense
accounts
64 assessment
reports
64 assessment
reports
Monitor early
completion of Bank
Reconciliation
Produce monthly
reconciled bank
reconciliations per
department
48 bank
reconciliation
48 bank
reconciliation
48 bank
reconciliation
48 bank
reconciliation
48 bank
reconciliation
48 bank
reconciliation
48 bank
reconciliation
48
reconciliation
192 reconciled
bank
reconciliation
192 reconciled
bank
reconciliation
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 44 -
Programme/ Sub-
programme output
Performance
Measures
1st Qtr Planned
Output
1st Qtr
Actual Output
2nd Qtr
Planned Output
2nd Qtr
Actual Output
3rd Qtr
Planned Output
3rd Qtr
Actual Output
4th Qtr
Planned Output
4th Qtr
Actual Output
Target for
2012/13 as per
APP
Actual output
2012/13
Municipal bank
accounts
Produce quarterly
report on
withdrawals from
municipal bank
accounts
1 report on
withdrawals
1 report on
withdrawals
1 report on
withdrawals
1 report on
withdrawals
1 report on
withdrawals
1 report on
withdrawals
1 report on
withdrawals
1 report on
withdrawals
4 reports on
withdrawals from
municipal bank
accounts
4 reports on
withdrawals from
municipal bank
accounts
Management Policy
Framework
Enhanced Asset
Management
Policy Framework
and functional
Asset
Management
System
4 depts.
Implemented
enhanced Asset
Management
Policy Framework
and fully
implemented
Barcoding and
Purchasing
Module
4 depts.
Implemented
enhanced
Asset
Management
Policy
Framework and
fully
implemented
Barcoding and
Purchasing
Module
4 depts.
Implemented
enhanced Asset
Management
Policy Framework
and fully
implemented
Barcoding and
Purchasing
Module
4 depts.
Implemented
enhanced
Asset
Management
Policy
Framework and
fully
implemented
Barcoding and
Purchasing
Module
4 depts.
Implemented
enhanced Asset
Management
Policy Framework
and fully
implemented
Barcoding and
Purchasing
Module
4 depts.
Implemented
enhanced
Asset
Management
Policy
Framework and
fully
implemented
Barcoding and
Purchasing
Module
4 depts.
monitored and
assisted to
comply with Asset
Management
Policy Framework
and prescripts,
and to fully utilise
existing asset
register
4 depts.
monitored and
assisted to
comply with
Asset
Management
Policy
Framework and
prescripts, and
to fully utilise
existing asset
register
16 depts. 16 depts.
No. of quality trainings
and workshops
No. of quality
trainings and
workshops
conducted
2 Hardcat training 0 1 Asset
Management
workshop
2 Hardcat training
2 Hardcat
Training
2 Hardcat training 2 Hardcat
training
2 Hardcat training 1 Hardcat
training
7 Hardcat training 5 Hardcat training
Management status
reports on effective
utilisation of Asset
Management
practices, processes
and Asset
Management System
Management
status reports on
effective use of
Asset Manage-
ment practices,
processes and
Asset Manage-
ment System
1 1 1 1 1 1 1 1 4 reports 4 reports
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 45 -
3.2 PUBLIC PRIVATE PARTNERSHIPS (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
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr Actual
Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
APP
Actual output
2012/13
Seminars/ workshops
conducted for
provincial
departments and
public entities
Number of seminars/
workshops
conducted for
provincial
departments and
public entities
Nil Nil Nil Nil 1 1 1 Nil 2 1
Number of seminars/
workshops conducted
for municipalities and
municipalities entities
Number of seminars/
workshops
conducted for
municipalities and
municipal entities
Nil 1 Nil 1 1 2 1 Nil 2 4
Reports for Provincial
Treasury
management and NT
PPP unit
Number of reports
for Provincial
Treasury
management and
NT PPP unit
3 3 3 3 2 3 2 3 10 12
Reports on closed
deal
Number of reports
on closed deal
1 3 1 3 1 3 1 3 4 12
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 46 -
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
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr Actual
Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th QtrActual
Output
Target for
2012/13 as per
APP
Actual output
2012/13
Training SCM
practitioners in
Provincial
departments and
municipalities
Number of SCM
training sessions
1 1 1 12 1 4 1 9 4 training
sessions/
workshops
26
Information
sessions conducted
1 1 1 1 1 1 1 Nil 4 SCM forums for
departments and
municipalities
3
Number of
assessments
Number of
assessments
15 25 15 24 15 21 15 33 60 routine
assessments
reports
103
Number of policies
and practice notes
reviewed and
issued
Number of policies
and practice notes
reviewed and issued
1 1 1 5 1 1 1 2 Review 4 practice
notes
9
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 47 -
3.4 FINANCIAL REPORTING:
• To analyse province-wide compliance, implementation and maintenance of generally recognised 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 1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr Actual
Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4thQtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
APP
Actual output
2012/13
Consolidated
Financial
Statements
Consolidation of AFS:
a. Departments
b. Revenue Fund (RF)
c. Public entities
N/A N/A Compile
consolidated AFS
for FY11/12
Compiled AFS
for RF,
consolidated
AFS for depts.,
public entities
N/A N/A N/A N/A Compile
consolidated
AFS for
FY11/12
Compiled AFS
for FY11/12
AFS training
Workshops
Departments:
AFS support and training
to depts.
1 AFS training
Pre-audit review
16 depts.
Nil
Pre-audit review
16 depts.
N/A N/A N/A N/A 1 AFS training
0 2 AFS training
Pre-audit
review 16
depts.
0
Pre-audit
review 16
depts.
Audit outcomes Departments: Provincial
Audit Outcomes Analysis
N/A N/A Summary of Audit
outcome - 1
month after AG’s
report
Compiled and
submitted to
National
Treasury within
timeframe
Monitoring 16
depts. Audit
implementation
plans
Monitoring 16
depts. Audit
implementation
plans
N/A N/A Summary of
Audit outcome
1 month after
AG’s report.
Monitoring 16
depts. Audit
implementation
plans
Summary of
Audit outcome
1 month after
AG’s report.
Monitoring 16
depts. Audit
implementation
plans
Municipal Support
Programme
Implementation Support
of Monthly Reconciliation
monitoring and tracking
tools General Financial
Management Support to
municipalities
3 municipalities
2 municipalities
3 municipalities
2 municipalities
3 municipalities
2 municipalities
6 municipalities
reconciliation
and
implementation
support
2 municipalities
supported
3 municipalities
2 municipalities
3 municipalities
2 municipalities
3 municipalities
2 municipalities
3 municipalities
2 municipalities
Implementation
support in 12
municipalities
2 municipalities
per quarter
12
municipalities
2 municipalities
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 48 -
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
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr
Actual Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th QtrPlanned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
APP
Actual output
2012/13
Number of policies
and practice notes
developed /
reviewed and
issued
Number of policies
and practice notes
developed /
reviewed and issued
4 policies and
practice notes
developed and
reviewed based
on need analysis
4 policies and
practice notes
developed and
reviewed based
on need analysis
(2 for Umvoti
Municipality; 2 for
KZN Sharks
Board)
4 policies and
practice notes
developed and
reviewed based
on need analysis
15 policies,
practice notes
developed and
reviewed
based on need
analysis (2
for Nquthu
Municipality; 2
for UMDA
public entity, 8
for depts)
4 policies and
practice notes
developed and
reviewed based
on need analysis
11 policies and
practice notes
developed and
reviewed
based on need
analysis (7
for
Umuziwabantu
Municipality; 4
for depts)
4 policies and
practice notes
developed and
reviewed based
on need analysis
12 policies and
practice notes
developed and
reviewed
based on need
analysis (4
for Ndwedwe
Municipality, 4
for Mfolozi
Municipality, 4
for depts.)
16 policies and
practice notes
developed and
reviewed
based on need
analysis
42 policies and
practice notes
developed and
reviewed based
on need analysis
Number of
municipalities
supported and
assistance provided
in review and
addressing of
needs relating to
their financial
management
policies
Number of
municipalities
supported and
assistance provided
in review and
addressing of needs
relating to their
financial
management
policies
1 1 municipality
1 public entity
1 1 municipality
1 public entity
1 1 1 2 4 5 municipalities
2 public entities
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 49 -
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
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr
Actual Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
APP
Actual output
2012/13
Fully functional
systems
Number of
initiatives/projects
implemented
ECM Phase 2 (1) ECM Phase 1-
96%
GWEA 40%
BACS VPN-
54%
BPM Phase 2 (1) ECM Phase
100%
GWEA 80%
BACS VPN-
80%
BCP review
RFID (2)
GWEA 100%
BACS VPN-
100%
Fax to Email -
100%
MSP (1) 1 As per MSP (5) 5 (ECM Phase1,
GWEA, Fax
to Email,
ECM Phase
2 (commenced)
Policy reviews Number of policy
reviews completed
1 2 (service
charter and
complaints
procedure)
1 1 (DRP) 1 2 (IT Project
Management
Methodology,
maintain Appl.
Software)
1 1 4 6
Compliance reports Number of
compliance reports
completed
3 4 (Vulnerability
Assessment,
Server Room
Access review,
BAS & Novell
user account
man. review)
3 4 (Cognos,
BAT, Internet
and Server
Room Access)
3 2 (Sdb and
PERSAL user
account
compliance)
3 1 12 11
Policy information
sessions
Number of
information sessions
conducted
2 2 (Internship
Induction &
Risk Man.
Forensic)
2 0 2 3 2 1 8 6
Mean time to
resolve (MTTR) -
provincial
Mean time to
resolve (MTTR)
8 hours 52min MTTR 8 hours 1 hour 8 hours 53 min 8 hours 8 hours 8 hrs per quarter 55 min per quarter
Network uptime Percentage network uptime
99% 100% 99% 98% 99% 100% 99% 99% 99% per quarter 99% per quarter
Percentage compliance with software licensing requirements
Percentage compliance with software licensing requirements
100% 100% 100% 100% 100% 100% 100% 100% 100% per quarter 100% per quarter
MTTR (transversal systems)
MTTR (transversal systems)
8-24 hr MTTR 2hr 31 min MTTR
8-24 hr MTTR 1hr 34 mins 8-24 hr MTTR 1hr 53 min 8-24 hr MTTR 8-24 hr MTTR 8-24 hr MTTR 1 hr 53 min
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 50 -
B.4 Programme 4: Internal Audit
Purpose : The Internal Audit componentprovides 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-
defense 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
• Development of the Provincial Governance Framework which is yet to be rolled out.
• Good support by the Provincial Audit and Risk Committee and co-operation received from the
provincial departments.
• 222 internal audit reviews were conducted.
• Approximately R54 million was spent on assurance activities conducted, with a view to improve the
existing control environment within the provincial administration.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 51 -
• Extension of scope to performance audits that focus on value for money spent on some of the key
service delivery programmes and projects in 2012/13 through the introduction of performance audits.
• Strengthening the IT control environment through introduction of IT audits and performance audits.
• Training of Internal Audit learners and interns placed on annual contracts, where 40 learners were
trained and most of them have already found permanent jobs.
• Training and development to permanent staff – e.g. the use of ACL tool and attendance of ISACA
conference to familiarise the IT auditors with the new COBIT 5.
• Successful enhancing of the skills levels of internal audit specialists, as well as increasing the
capacity of these scarce skills in the province. The unit now hasspecialist performance auditors and IT
auditors in-house.
Risk and Advisory Services
This sub-programme is tasked with assisting provincial departments, public entities and municipalities with
risk management services and forensic investigations.
The achievements of Risk and Advisory Services are as follows:
• During the period under review, the Risk and Advisory Services team assisted provincial departments
with a risk consolidation project. This project entailed consolidation of various pockets of risk
assessments into one risk register, and handing-over of these risk registers to provincial departments
for future maintenance and updating.
• The team has also been monitoring and reporting on progress made in the implementation of agreed-
upon risk mitigation plans. A total of 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 six public entities and municipalities with risk assessments during 2012/13.
• To date, all municipalities delegated to the province have risk profiles and registers which are utilised
to monitor progress on the implementation of the risk mitigation plans with the assistance of the team.
• As part of the implementation of the Provincial Risk Management Framework and the Municipal Risk
Management Framework, provincial departments and municipalities are continuing to receive
guidance and assistance to establish their own risk management functions, risk policies, and risk
oversight structures. A gap analysis on how these institutions complied with their respective risk
management frameworks has been completed for all 15 departments and 34 municipalities.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 52 -
• Approximately 80 per cent of the provincial departments have appointed risk managers with the
assistance of the team.
• With regard to Operation Clean Audit, the unit commenced with the roll-out of the Municipalities’
Enterprise Risk Management Framework during 2012/13.
• The extent of the use of consultants was successfully minimised, as Treasury managed to secure
very effective permanent risk management specialists within the municipal support sub-component.
• Just below R5 million was spent to assist all municipalities with conducting risk and control
assessment workshops, some compliance reviews, training of audit committee members and internal
auditors as well as assisting with the performance of some assurance reviews, including IT audits in
some of the municipalities. The support programme for the year was very successful, though
sustainability is still a challenge due to a lack of capacity in those municipalities receiving support.
Forensic InvestigationServices
The Forensic Investigation teamwas 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, 172 requests with a total value of R1.600 billion to be investigated were received.
• 81 of these investigations were finalised.
• 25 of the 81 completed investigations were finalised during 2012/13 at a cost of R24.600 million. In a
given financial year, on average, Treasury spends approximately R26 million to complete the
investigations that can be done using existing capacity.
• 91 investigations are still in progress.
• 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.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 53 -
• 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. The
future plan is for the team to work with these departments to close the gaps that have been identified
as part of the review process.
• Training and development programmes were undertaken through the assistance of identified service
providers to enhance the skills of forensic investigators – Certified Fraud Examination.
• The current training programmes in progress relate to the post-graduate Diploma in Computer
Forensics.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 54 -
Programme Four: Internal Audit
4.1 ASSURANCE SERVICES: To provide departments, municipalities and public entities with the following:
• 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 1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr
Actual Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
APP
Actual output
2012/13
Internal audit report on
performance
information
No. of audits on
predetermined
objectives completed as
per operational plan
0 0 0 0 0 3 20 13 20 16
Internal audit report on
performance
information
No. of projects
completed on the
design, implementation,
and effectiveness of
business ethics, related
objectives, programmes
and activities.
0 0 0 0 20 0 0 0 20 0
Audit Committee
reports to the cabinet
Annual Audit Committee
reports on clients’ areas
of risk management,
governance and internal
control submitted to
MEC: Finance
0 0 1 1 0 0 0 0 1 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 55 -
Programme/ Sub-
programme output
Performance
Measures
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr
Actual Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
APP
Actual output
2012/13
Internal Audit Reports No. of risk based
audit assignments
completed per
operational plan
30 27 30 31 31 30 32 47 123 135
Accounting Officers’
reports
No. of half-yearly
Accounting Officers’
reports issued to
Management
20 0 0 0 20 0 0 16 40 16
No. of IA annual
operational plan and
rolling three-year
strategic plan
No. of IA annual
operational plan and
rolling three-year
strategic plan
developed and
approved
20 20 0 0 0 0 0 0 20 20
Minutes of meetings No. of meetings held
between clients and
Audit Committee
15 15 15 15 15 15 15 15 60 60
No of follow-up audits
conducted
No of follow-up
audits conducted per
operational plans
5 7 20 21 25 22 30 21 80 71
Training and
development
programmes
No. of training and
development
programmes
attended
3 3 3 4 3 3 3 3 12 13
An Independent
internal and external
quality assurance
review
No. of internal and
independent
external quality
assurance reviews
conducted.
0 0 1 0 0 4 1 0 2 4
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 56 -
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
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr
Actual Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
(APP)
Actual output
2012/13
No of enterprise wide
risk reports issued
Risk reports issued
for municipalities
10 8 10 12 10 22 10 2 40 44
Quarterly reports Updated risk reports
issued for depts. and
public entities
5 13 6 3 6 0 5 4 22 20
Consolidated risk
profiles
Quarterly risk follow-
up reports issued to
clients
16 15 16 15 16 15 16 15 64 60
Risk Management No. of consolidated
risk profiles
developed
0 0 0 1 1 0 0 0 1 1
Audit Committee
quarterly reports on
the clients’ areas of
risk management and
risk governance
Number of risk
management
maturity gap
analysis reports
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 57 -
Programme/ Sub-
programme output
Performance
Measures
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr
Actual Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
(APP)
Actual output
2012/13
Number of follow-
ups on risk maturity
gap analysis
department and
public entities
6 0 5 15 5 15 5 0 21 30
Number of ERM
compliance
reviews/follow-up for
municipalities
10 0 10 0 10 9 10 25 40 34
Number of training
sessions conducted
Audit Committee
quarterly reports on
the clients’ areas of
risk management
and risk governance
1 15 1 15 1 15 1 15 4 60
Training held Number of training /
risk awareness on
governance and risk
management
sessions
4 7 4 12 4 5 3 5 15 29
Minutes of risk
management forum
and feedback
Number of risk
management forum
meetings held
1 0 1 1 1 1 1 2 4 4
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 58 -
4.2.2 FORENSIC SERVICES: To promote a culture of zero tolerance for fraud and corruption.
Programme/ Sub-
programme output
Performance
Measures
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr
Actual Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
(APP)
Actual output
2012/13
Internal Audit Reports
and an updated fraud
risk database
No of reviews on the
status of fraud
management in the
departments
0 13 8 14 0 0 8 0 16 27
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
Per client
request
3 Per client request 12 Per client request 1 Per client request 7 Per client request 23
Forensic Audit reports,
Audit committee
reports and
Accounting Officer
reports
Updated register of
forensic
investigations
1 1 0 0 1 1 0 0 2 2
Follow-up
investigations reports
Number of follow-
ups on completed
investigations
0 0 8 5 4 15 4 14 16 34
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 59 -
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:
• The department conducted community outreach events at various district municipalities
throughout the province. The purpose was to ensure the full consultation and participation of
community in the planning process of the department.
• The community outreach events were held at the following areas:Emadlangeni, Edumbe,
Umhlathuze, Endumeni, Ukhahlamba, Empangeni/Ngwelezane, Jozini,Msunduzi,Msunduzi World
Aids Day,Umdoni andMooi-Mpofana.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013
KZN Provincial Treasury Annual Report - 60 -
Programme Five: Growth and Development
5.1 GROWTH AND DEVELOPMENT: 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
1st Qtr Planned
Output
1st Qtr Actual
Output
2nd Qtr Planned
Output
2nd Qtr
Actual Output
3rd Qtr Planned
Output
3rd Qtr Actual
Output
4th Qtr Planned
Output
4th Qtr Actual
Output
Target for
2012/13 as per
(APP)
Actual output
2012/13
100% response to
determinations of
Technical Committee
No. of events co-
ordinated
successfully
1 1 0 3 1 3 3 2 5 9
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
REPORT OF THE AUDIT COMMITTEE FOR THE YEAR ENDED 31 MARCH 2013
KZN Provincial Treasury Annual Report - 61 -
PART C: REPORT OF THE AUDIT COMMITTEE
The KwaZulu-Natal Provincial Audit and Risk Committee is pleased to present its report for the
financial year ended 31 March 2013.
Provincial Audit and Risk Committee Members and Att endance
The Provincial Audit and Risk Committee (PARC) consists of the members listed hereunder. The
PARC is split into three Cluster Audit and Risk Committees (the CARCs) which consist of
members of the PARC,areresponsible for the Governance and Administration, Social and
Economic Clusters, respectively, and reporting into the PARC. The Chairman of the PARC is also
the Chairman of the different CARCs and attends all CARC meetings. The CARC and the PARC
are required to meet at least four times and two times, respectively, in a financial year. During the
financial year ending 31 March 2013, a total of sixteen meetings were held, namely, two PARC
meetings, twelve CARC meetings, and two special meetings. Members attended the meetings as
reflected below:
Surname and
initial
PARC CARC Special Total no.
of
meetings
Total no. of
meetings
attended No. of
meetings
held
Attended No. of
meetings
held
Attended No. of
meetings
held
Attended
Ms T.Tsautse
(Chairman)
2 2 12 12# 2 2 16 16
Ms M.Mothipe 2 2 4 4* 2 2 8 8
Ms N.Jaxa 2 2 4 4* 2 2 8 8
Mr L. Mangquku 2 2 4 4* 2 2 8 8
Mr T.Boltman 2 2 4 4* 2 2 8 8
Mr F.Docrat 2 2 4 4* 2 2 8 8
Mr V.Naicker 2 2 4 2* 2 2 8 6
* - 4meetings per cluster were held # - Chairman attends all CARC meetings Provincial Audit and Risk Committee Responsibility
The Provincial Audit and Risk Committee reports that it complied with its responsibilities arising
from the Public Finance Management Act, No.1 of 1999 (PFMA), Treasury Regulations, including
any other statutory regulations. 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.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
REPORT OF THE AUDIT COMMITTEE FOR THE YEAR ENDED 31 MARCH 2013
KZN Provincial Treasury Annual Report - 62 -
The Effectiveness of Internal Control
The systems of internal control are the responsibility of the department’s management and are
designed to provide effective assurance that assets are safeguarded and that liabilities and
working capital are efficiently managed. In line with the requirements of the PFMA and the
principles of the King III Report on Corporate Governance, the Internal Audit Function provides the
Provincial Audit and Risk Committee and the departmental management with assurance that the
systems of internal controls are appropriate and effective. This is achieved by means of the risk
management process, as well as the identification of corrective actions and suggested
enhancements to the controls and processes. From the various reports of the Internal Auditors,
and the Report and Management Letter of the Auditor-General on the Annual Financial
Statements, it was noted that the systems of internal control and financial internal controls were
not effective and inadequate in certain areas for the entire year under review, as control
deficiencies were detected in the following significant areas:
• Fleet Management
• IT Application Controls
The quality of “In Year Monitoring” and monthly / q uarterly reports submitted in terms of
the Treasury Regulations and the Division of Revenu e Act
The Provincial Audit and Risk Committee, through the Internal Audit Function, was satisfied with
the content and quality of monthly and quarterly reports prepared and issued by the Accounting
Officer and the department during the year under review.
Audit of Performance Information
The monitoring of the department’s performance is a key function of the executive management of
the department. The Provincial Audit and Risk Committee has no direct line of responsibility over
the department’s performance. However, the Provincial Audit and Risk Committee is responsible
for ensuring, principally through the Internal Audit Function that the systems of performance
management, measurement and reporting; as well as the systems of internal control that underpin
the performance management framework of the department, remain robust and are reviewed
routinely in the internal audit plans.
The Committee has accepted the responsibility of ensuring that adequate reporting on
performance information is in line with its mandate and charter.
The Committee reviewed the reports relating to performance information and noted no material
deficiencies.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
REPORT OF THE AUDIT COMMITTEE FOR THE YEAR ENDED 31 MARCH 2013
KZN Provincial Treasury Annual Report - 63 -
Internal Audit Function
The Provincial Audit and Risk Committee provides oversight and monitors the activities of the
Internal Audit Function. Consequently, the Committee is able to report on the effectiveness and
efficiency of the function.
The 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.
Risk Management Function
Risk Management is a proactive discipline that is intended to provide reasonable assurance that
the department will achieve its objectives.
During this financial year, the Committee reviewed risk reports of the department on a quarterly
basis, with particular focus on:
- Reviewing the Risk Maturity Gap Analysis Report as compiled and presented by the PIAS to
determine if this department has key structures and policies to take over its risk management
responsibilities.
The result of this analysis was discussed with the department’s management, and the
department was advised to build its internal risk management capacity through, among other
things, the appointment of a Risk Manager at an appropriate level – i.e. the Risk Manager
should be appointed at level 13 and should report directly to the HOD.
- Reviewing progress report on the implementation of risk mitigation plans. The department was
urged to finalise the outstanding risk mitigation plans and to update its risk register with
completed risk mitigations plans and emerging risks.
Other Governance Issues
As part of its governance responsibilities, the Committee also monitors the fraud prevention
strategies that have been developed and implemented by provincial departments, and these
responsibilities include monitoring the implementation of recommendations arising from forensic
investigations.
During the period under review, the Committee noted that the department had 5 investigations that
were completed, all of which were conducted by the Provincial Treasury’s Internal Audit Function.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
REPORT OF THE AUDIT COMMITTEE FOR THE YEAR ENDED 31 MARCH 2013
KZN Provincial Treasury Annual Report - 64 -
The department was urged to implement recommendations arising from the completed
investigation, and to provide the Internal Audit Function with a detailed list of all other
investigations being conducted internally or by other relevant authorities.
Evaluation of Financial Statements
The Provincial Audit and Risk Committee reviewed the Annual Financial Statements of the
department, as well as the Auditor-General’s management report together with management’s
response thereto. The Provincial Audit and Risk Committee concurs and accepts the Auditor-
General’s conclusions on the annual financial statements, and is of the opinion that the audited
annual financial statements be accepted and read together with the report of the Auditor-General.
__________________________________________ Chairperson: Provincial Audit & Risk Committee
Date: 31 July 2013
KWAZULU NATAL PROVINCIAL TREASURY VOTE 6
REPORT OF THE ACCOUNTING OFFICER FOR THE YEAR ENDED 31 MARCH 2013
KZN Provincial Treasury Annual Report - 65 -
Report by the Accounting Officer to the Executive A uthority and the KwaZulu-Natal Legislature. 1. GENERAL REVIEW OF THE STATE OF FINANCIAL AFFAIRS
The department had an appropriated budget of R613,235 million (2011/12: R510,024 million) for
the 2012/13 financial year. The expenditure for the year totalled R518,454 million (2011/12:
R390,325 million).
The department had a net under spending/saving of R94,781 million spread across all
programmes. This was mainly due to allocations done in the Adjustments Estimate for various
once-off special projects that started late or were delayed as well as a saving on the provision
for servicing the bank overdraft resulting from the improved overall cash position of the Province.
The special projects referred to above include the following:
• The Thuthuka bursary initiative with the South Africa Institute of Chartered Accountants to
train more Accountants due to a lower than expected uptake.
• Slower than anticipated claims from the Infrastructure Crack Team service providers for
services rendered at municipalities.
• The provision of assistance to Small Businesses to obtain BEE verification certificates was
delayed due to the difficult process to evaluate potential service providers.
• The airport upgrading initiatives were delayed due to a late appointment of service providers
by the relevant municipalities.
• Slower than anticipated claims from the service providers for forensic investigation services.
• Two commercial initiatives in the Greater Kokstad area due to planning delays at the
municipality and the community participation process.
The following post Adjustments Estimate virements were made between programmes:
a) A virement of R5,457 million was made from Programme 1: Administration to
Programme 3: Financial Management.
• An amount of R5,377 million was moved within Goods and services to assist the
Department of Health with the reconciliation of its movable assets.
• Amounts of R37 000, R41 000 and R12 000 were moved within the economic
classification: Payments for capital assets for office furniture and computers.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
REPORT OF THE ACCOUNTING OFFICER FOR THE YEAR ENDED 31 MARCH 2013
KZN Provincial Treasury Annual Report - 66 -
b) An amount of R177 000 was moved from Programme 2: Fiscal Resource Management
within the economic classification: Payments for capital assets to Programme 3: Financial
Management for the procurement of a server for the computer network.
c) An amount of R40 000 was moved from Programme 3: Financial Management within the
economic classification Transfers to: Households to Programme 2: Fiscal Resource
Management (R11 000) and Programme 4: Internal Audit (R29 000) for leave gratuities
resulting from unplanned staff exits.
d) An amount of R394 000 was moved from Programme 4: Internal Audit within the
economic classification: Payments for capital assets to Programme 3: Financial
Management for the procurement of an internet connector licence required to link
departments to the Business Process Mapping processors.
Various post Adjustments Estimate virements were made between economic classifications
within the various programmes.
All virements were approved by Accounting Officer of the department in terms of Section 43(1)
of the Public Finance Management Act.
The revenue collected during the year was R45,343 million compared to R56,253 million of the
previous year. The main source of revenue is the interest earned on the Revenue Fund Bank
Accounts which were positive throughout the year.
The department had minimal payables at the end of the financial year.
There was no fruitless, wasteful or irregular expenditure not condoned during 2012/13.
2. SERVICES RENDERED BY THE DEPARTMENT
The department plays a vital oversight role over the financial and fiscal management of the
provincial departments and provincial public entities and, since July 2005, this was extended to
include the local sphere of government. The services rendered by the department are reflective
of the programme structure of the department which has been aligned to the National Treasury
requirements and include:
� The development, implementation and monitoring of fiscal, financial management and
governance policies for the KwaZulu-Natal provincial government and its public entities.
� The allocation of provincial funds by means of budget preparation and implementation;
KWAZULU NATAL PROVINCIAL TREASURY VOTE 6
REPORT OF THE ACCOUNTING OFFICER FOR THE YEAR ENDED 31 MARCH 2013
KZN Provincial Treasury Annual Report - 67 -
� Providing treasury support services to the provincial departments, public entities and
municipalities;
� Maintaining and supporting the provincial financial management systems;
� Provision of internal audit and risk management services to the provincial government
including municipalities;
� Funding and monitoring other structures responsible for the delivering of services in the
province;
� Managing the provincial revenue fund; and
� Monitoring of budget processes and provision of financial and Supply Chain Management
support services to municipalities.
3. CAPACITY CONSTRAINTS
The vacancy rate in the department has improved to an average rate of 15.23 per cent
compared to 15.62 per cent in 2011/12. The vacancy rate of senior management posts has also
improved from a 28.3 per cent vacancy in 2011/12 to 12 per cent in 2012/13. It is important to
note that significant efforts have been undertaken to fill the vacancies, but this is still being
hampered by a high staff turnover rate and, in many instances, a general skills shortage. The
filling of the remaining posts will again be a priority in 2013/14 to ensure that the appropriate
support is provided to the department’s clients. In addition, appropriate service providers will
again be engaged to ensure continued service delivery in critical areas until the vacancies can
be filled, particularly in internal auditing, municipal support and financial management.
4. UTILISATION OF DONOR FUNDS
No donor funds were received by the department during the year under review.
5. TRADING ENTITIES AND PUBLIC ENTITIES
There are no trading entities or public entities under the control of the department.
6. ORGANISATIONS TO WHOM TRANSFER PAYMENTS HAVE BEE N MADE
The following transfers were made to municipalities for the upgrading of regional airports in
those municipalities:
• R574,000 was paid to the uMsunduzi Municipality for the Pietermaritzburg Airport.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
REPORT OF THE ACCOUNTING OFFICER FOR THE YEAR ENDED 31 MARCH 2013
KZN Provincial Treasury Annual Report - 68 -
• R19,661 million was paid to the Zululand District Municipality for the Ulundi Airport.
• R7,777 million was paid to the uMhlathuze Municipality for the Richards Bay Airport.
7. PUBLIC PRIVATE PARTNERSHIPS (PPP)
The department did not conclude any PPP agreement during the year.
8. CORPORATE GOVERNANCE ARRANGEMENTS
The risk profile was reviewed and serves as a platform and foundation in identifying, managing
and controlling the business risks of the department. The department inculcated the culture of
risk management through continued review of risk profile and implementation of risk mitigation
strategies. The department reported to the Audit Committee on how it manages its risk mitigation
strategies. As part of good corporate governance strategy, the key management personnel have
disclosed their financial interests. The disclosure was extended to all senior managers in respect
of related party transactions to their close family members. In enhancing IT governance, the
department continued with a project that aims to strengthen the IT networks of the financial
systems.
The department complies with monthly, quarterly and annual reporting requirements for financial
and non-financial information as required by the PFMA of 1999. The department has policies in
place to manage and control its resources including assets, liabilities, revenue, expenditure and
human resources. The department continued to apply and adhere to supply chain management
requirements in its procurement. To manage conflict of interest, all bid committee members are
required to declare their interest upfront during the adjudication of bids.
The Head of Department is not the Accounting Officer of the department and does not account
on the issues of the department’s budget. Responsibility Managers are appointed under each of
five programmes who undertake financial management in their respective sub-programmes.
The overall responsibility of the management of the budget rests with the Senior General
Manager: Financial Management, appointed in terms of section 36(3) of the PFMA of 1999 as
the Accounting Officer, assisted by the Chief Financial Officer of the department. The structure
which is currently in place ensures that there are adequate controls in place to regulate issues of
accountability and responsibility as well as to ensure that managers are empowered to manage
and ultimately be held accountable for the decisions which they take and implement.
KWAZULU NATAL PROVINCIAL TREASURY VOTE 6
REPORT OF THE ACCOUNTING OFFICER FOR THE YEAR ENDED 31 MARCH 2013
KZN Provincial Treasury Annual Report - 69 -
9. DISCONTINUED ACTIVITIES
There were no activities discontinued during the year 2012/13.
10. NEW ACTIVITIES
There were no new activities during the year under review.
11. ASSET MANAGEMENT
The department has fully complied with minimum requirements of the asset management
guidelines.
12. INVENTORIES
All inventory opening and closing balances, together with movements for the year will be
reflected in the Annexure on Inventory.
13. EVENTS AFTER THE REPORTING DATE
There are no events subsequent to the reporting date.
14. INFORMATION ON PREDETERMINED OBJECTIVES
The department has processes in place to monitor record and report pre-determined objectives
in line with the approved policy. The performance targets are contained in the Annual
Performance Plan of the department. Managers are reporting on a quarterly basis on the
performance of their units against planned activities and targets contained in the Annual
Performance Plan. Quarterly, financial and non-financial information are submitted to the
Resource Management Branch in the Treasury for discussion at the MTEC meetings with the
department.
15. PROVINCIAL PUBLIC ACCOUNTS COMMITTEE (PPAC) RES OLUTIONS
The department has no outstanding PPAC resolutions relating to Vote 6. The department is,
however, required in terms of the various transversal resolutions on irregular expenditure, to
investigate and report on the irregular expenditure of all departments and public entities. The
process of analysing the circumstances, extent and nature of the transgressions resulting in the
irregular expenditure is being undertaken in consultation with the relevant departments and
interim reports are submitted to the PPAC on an on-going basis.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
REPORT OF THE ACCOUNTING OFFICER FOR THE YEAR ENDED 31 MARCH 2013
KZN Provincial Treasury Annual Report - 70 -
As requested by the PPAC, the department is also assisting the Departments of Health and
Education in the assets management project and the leave commitment verification exercise,
respectively.
16. PRIOR MODIFICATIONS TO AUDIT REPORTS
The department received a clean audit in 2011/12 and all matters raised in the management
report of the Auditor-General have been satisfactory disposed of.
17. EXEMPTIONS AND DEVIATIONS RECIEVED FROM NATIONA L TREASURY
No exemptions have been requested from National Treasury by the department.
18. INTERIM FINANCIAL STATEMENTS
The department has prepared quarterly interim financial statements in 2012/13. All four interim
financial statements were submitted to the executive authority and the Provincial Audit
Committee.
19. OTHER
The department during 2012/13, again assisted the Departments of Social Development and
Sport and Recreation in their Supply Chain Management functions resulting from the suspension
of some staff and capacity constraints.
20. APPROVAL
The Annual Financial Statements set out on pages 75 to 136 have been approved by the
Accounting Officer.
Mr H.A.W. Conradie Acting Accounting Officer 31 May 2013
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
REPORT OF THE AUDITOR-GENERALFOR THE YEAR ENDED 31 MARCH 2013
KZN Provincial Treasury Annual Report - 71 -
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 75 to 136, which comprise the appropriation statement, the statement of financial
position as at 31 March 2013, the statement of financial performance, statement of changes
in net assets and the cash flow statement for the year then ended, and 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 of the financial statements in
accordance with the Departmental financial reporting framework prescribed by the National
Treasury and the requirements of the Public Finance Management Act of South Africa, 1999
(Act No. 1 of 1999)(PMFA) and the Division of Revenue Act of South Africa, 2012 (Act No. 5
of 2012)(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 withthe Public Audit Act of South Africa, 2004 (Act No.
25 of 2004) (PAA), the General Notice issued in terms thereof and International Standards
on Auditing. Those standards require that I comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the KwaZulu-Natal Provincial Treasury’s preparation 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-GENERALFOR THE YEAR ENDED 31 MARCH 2013
KZN Provincial Treasury Annual Report - 72 -
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
KwaZulu-Natal Provincial Treasury’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 2013, and its financial
performance and cash flows for the year then ended in accordance with the Departmental
financial reporting framework prescribed by the National Treasury and the requirements of
the PFMA and DoRA.
Emphasis of matter
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 KwaZulu-Natal Provincial Treasury has
materially under-spent the budget of the vote by R94,89 million. This is mainly attributable
to the following delays experienced in the filling of vacant funded posts; approval for the
extension of the Pietermaritzburg Airport as well as the appointment of service providers for
other infrastructure projects; procurement of the E-Procurement Tool and the submission of
invoices from service providers for municipal support.
Additional matters
9. I draw attention to the matters below. My opinion is not modified in respect of these matters.
Unaudited supplementary schedules
10. The supplementary schedules set out on pages 128 to 136do not form part of the financial
statements and are 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-GENERALFOR THE YEAR ENDED 31 MARCH 2013
KZN Provincial Treasury Annual Report - 73 -
Financial reporting framework
11. The financial reporting framework prescribed by the National Treasury and applied by the
KwaZulu-Natal Provincial Treasury is a compliance framework. The wording of my opinion
on a compliance framework should reflect that the financial statements have been prepared
in accordance with this framework and not that they “present fairly”. Section 20(2)(a) of the
PAA, however, requires me to express an opinion on the fair presentation of the financial
statements. The wording of my opinion therefore reflects this requirement.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
12. In accordance with the PAA and the General Notice issued in terms thereof, I report the
following findings relevant to performance against predetermined objectives, compliance
with laws and regulations and internal control, but not for the purpose of expressing an
opinion.
Predetermined objectives
13. I performed procedures to obtain evidence about the usefulness and reliability of the
information in the annual performance report as set out on pages09 to 60 of the annual
report.
14. The reported performance against predetermined objectives was evaluated against the
overall criteria of usefulness and reliability. The usefulness of information in the annual
performance report relates to whether it is presented in accordance with the National
Treasury’s annual reporting principles and whether the reported performance is consistent
with the planned objectives. The usefulness of information further relates to whether
indicators and targets are measurable (i.e. well defined, verifiable, specific, measurable and
time bound) and relevant as required by the National TreasuryFramework for managing
programme performance information.
The reliability of the information in respect of the selected programmes is assessed to
determine whether it adequately reflects the facts (i.e. whether it is valid, accurate and
complete).
15. There were no material findings on the annual performance report concerning the
usefulness and reliability of the information.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
REPORT OF THE AUDITOR-GENERALFOR THE YEAR ENDED 31 MARCH 2013
KZN Provincial Treasury Annual Report - 74 -
Compliance with laws and regulations
16. I did not identify any instances of material non-compliance with specific matters in key
applicable laws and regulations, as set out in the General Notice issued in terms of the
PAA.
Internal control
17. I did not identify any deficiencies in internal control which I considered sufficiently significant
for inclusion in this report.
OTHER REPORTS
Investigation
18. One investigation into alleged fraud and corruption in supply chain management was
completed.
Pietermaritzburg
31 July 2013
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 75 -
Appropriation per programme
2012/13 2011/12
APPROPRIATION STATEMENT Adjusted Appropriation
Shifting of Funds
Virement Final Appropriation
Actual Expenditure
Variance Expenditure as % of
final
appropriation
Final Appropriation
Actual Expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
1. Administration
Current payment 100,588 (5,367) 95,221 87,231 7,990 91.6% 91,718 78,484 Transfers and subsidies 12,236 12,236 9,005 3,231 73.6% 468 453 Payment for capital assets 1,770 (90) 1,680 1,669 11 99.3% 1,675 1,424 Payment for financial assets
114,594 (5,457) 109,137 97,905 11,232 93,861 80,361 2. Fiscal Resource Management
Current payment 94,846 94,846 76,716 18,130 80.9% 59,573 31,778 Transfers and subsidies 13 11 24 23 1 95.8% Payment for capital assets 315 (177) 138 131 7 94.9% 534 374 Payment for financial assets 129 128
95,174 (166) 95,008 76,870 18,138 60,236 32,280 3. Financial Management
Current payment 220,944 5,367 226,311 207,790 18,521 91.8% 207,945 162,478 Transfers and subsidies 1,357 (40) 1,317 555 762 42.1% 1,300 689 Payment for capital assets 3,090 661 3,751 3,749 2 99.9% 4,258 1,536 Payment for financial assets 92 91 225,391 5,988 231,379 212,094 19,285 213,595 164,794
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 76 -
Appropriation per programme 2012/13 2011/12
APPROPRIATION STATEMENT Adjusted Appropriation
Shifting of Funds
Virement Final Appropriation
Actual Expenditure
Variance Expenditure as % of
final
appropriation
Final Appropriation
Actual Expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
4. Internal Audit
Current payment 106,159 106,159 92,760 13,399 87.4% 95,565 74,671 Transfers and subsidies 29 29 29 100.0% Payment for capital assets 758 (394) 364 352 12 96.7% 691 485 Payment for financial assets 14 14 13 1 92.9% 14 13
106,931 (365) 106,566 93,154 13,412 96,270 75,169 5. Growth and Development
Current payment 17,282 (1,000) 16,282 10,305 5,977 63.3% 7,024 6,457 Transfers and subsidies 53,863 1,000 54,863 28,012 26,851 51.1% 39,038 31,264 Payment for capital assets Payment for financial assets
71,145 71,145 38,317 32,828 46,062 37,721 TOTAL 613,235 613,235 518,340 94,895 84.5% 510,024 390,325
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 77 -
2012/13 2011/12
Final Appropriation
Actual Expenditure
Final Appropriation
Actual Expenditure
TOTAL (brought forward) 613,235 518,340 510,024 390,325 Reconciliation with statement of financial performa nce ADD Departmental receipts 45,343 56,253
Actual a mounts per statement of financial performance (tota l revenue) 658,578 566,277
ADD
Aid assistance
Direct Exchequer payments
Prior year unauthorised expenditure approved without funding
Actual amounts per statement of financial performance (total expen diture) 518,340 390,325
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 78 -
Appropriation per economic classification
2012/13 2011/12
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 183,479 183,479 163,143 20,336 88.9% 143,501 127,078
Goods and services 352,040 (1,000) 351,040 311,659 39,381 88.8% 289,324 225,784
Interest and rent on land 4,300 4,300 4,300 29,000 1,006
Transfers and subsidies
Provinces and municipalities 53,877 1,000 54,877 28,026 26,851 51.1% 39,053 31,264
Households 13,592 13,592 9,598 3,994 70.6% 1,753 1,142
Payments for capital assets
Machinery and equipment 5,933 (394) 5,539 5,507 32 99.4% 6,633 3,294
Software and other intangible assets 394 394 394 100.0% 525 525
Payments for financial assets 14 14 13 1 92.9% 235 232
Total 613,235 613,235 518,340 94,895 84.5% 510,024 390,325
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 79 -
2012/13 2011/12
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
PROGRAMME 1: ADMINISTRATION
1.1 Office of the MEC
Current payment 25,480 (3,559) 21,921 21,902 19 99.9% 21,390 18,141
Transfers and subsidies
Payment for capital assets 838 (58) 780 778 2 99.7% 571 381
Payment for financial assets
1.2 Head of the Department
Current payment 8,185 (475) 7,710 6,722 988 87.2% 6,976 5,687
Transfers and subsidies
Payment for capital assets 132 (37) 95 86 9 90.5% 53 52
Payment for financial assets
1.3 Chief Financial Office
Current payment 21,374 (3,476) 17,898 13,296 4,602 74.3% 22,856 17,186
Transfers and subsidies 394 (25) 367 361 6 98.4%
Payment for capital assets 126 (53) 73 73 100.0% 120 103
Payment for financial assets
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 80 -
2012/13 2011/12
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 1.4 Human Resource Management
Current payment 14,305 (41) 14,264 11,884 2,380 83.3% 12,143 11,022
Transfers and subsidies 11,830 11,830 8,605 3,225 72.7% 453 453
Payment for capital assets 100 100 100 100.0% 177 134
Payment for financial assets
1.5 Corporate Services
Current payment 31,244 2,184 33,428 33,427 1 100.0% 28,353 26,448
Transfers and subsidies 14 25 39 39 100.0% 15
Payment for capital assets 574 58 632 632 100.0% 754 754
Payment for financial assets
TOTAL 114,594 (5,457) 109,137 97,905 11,232 89.7% 93,861 80,361
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 81 -
2012/13 2011/12
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 46,142 46,142 43,763 2,379 94.8% 39,828 35,936
Goods and services 54,446 (5,367) 49,079 43,469 5,610 88.6% 51,890 42,548
Interest and rent on land
Transfers and subsidies to:
Provinces and municipalities 14 14 14 100.0% 15
Households 12,222 12,222 8.990 3,232 73.6% 453 453
Gifts and donations
Payment for capital assets
Machinery and equipment 1,770 (90) 1,680 1,669 11 99.3% 1,675 1,424
Software and other intangible assets
Payments for financial assets
Total 114,594 (5,457) 109,137 97,905 11,232 89.7% 93,861 80,361
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 82 -
2012/13 2011/12
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
PROGRAMME 2: FISCAL RESOURCE MANAGEMENT
2.1 Programme Support
Current payment 1,220 1,220 751 469 61.6% 3,444 548
Transfers and subsidies
Payment for capital assets 34 (28) 6 6 23
Payment for financial assets
2.2 Economic Analysis
Current payment 27,458 27,458 19,489 7,969 71.0% 8,084 4,030
Transfers and subsidies
Payment for capital assets 61 (50) 11 10 1 90.9% 73 58
Payment for financial assets 78 78
2.3 Public Finance
Current payment 11,991 11,991 9,708 2,283 81.0% 10,063 9,238
Transfers and subsidies
Payment for capital assets 80 (49) 31 31 100.0% 197 181
Payment for financial assets 16 16
2.4 Municipal Finance
Current payment 54,177 54,177 46,768 7,409 86.3% 37,982 17,962
Transfers and subsidies 13 11 24 23 1 95.8%
Payment for capital assets 140 (50) 90 90 100.0% 241 135
Payment for financial assets 35 34
TOTAL 95,174 (166) 95,008 76,870 18,138 80.9% 60,236 32,280
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 83 -
2012/13 2011/12
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 36,785 36,785 30,283 6,502 82.3% 25,546 21,191
Goods and services 58,061 58,061 46,433 11,628 80.0% 34,027 10,587
Interest and rent on land
Transfers and subsidies to:
Provinces and municipalities
Households 13 11 24 23 1 95.8%
Gifts and donations
Payment for capital assets
Machinery and equipment 315 (177) 138 131 7 94.9% 534 374
Software and other intangible assets
Payments for financial assets 129 128
Total 95,174 (166) 95,008 76,870 18,138 80.9% 60,236 32,280
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 84 -
2012/13 2011/12
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
PROGRAMME 3: FINANCIAL MANAGEMENT
3.1 Financial Assets and Liability Management
Current payment 20,519 (480) 20,039 14,081 5,958 70.3% 44,125 14,506
Transfers and subsidies 1,332 (66) 1266 506 760 40.0% 1,281 671
Payment for capital assets 48 (48) 158 84
Payment for financial assets
3.2 Public, Private Partnerships
Current payment 3,652 (230) 3,422 3,184 238 93.0% 4,072 3,021
Transfers and subsidies
Payment for capital assets 25 42 67 67 100.0% 20
Payment for financial assets
3.3 Supply Chain Management
Current payment 51,621 51,621 41,436 10,185 80.3% 28,827 27,530
Transfers and subsidies 17 26 43 42 1 97.7% 15 14
Payment for capital assets 85 105 190 189 1 99.5% 330 318
Payment for financial assets
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 85 -
2012/13 2011/12
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 3.4 Financial Reporting
Current payment 25,971 6,538 32,509 31,536 973 97.0% 22,793 12,496
Transfers and subsidies 8 8 7 1 87.5% 4 4
Payment for capital assets 168 20 188 188 100.0% 121 26
Payment for financial assets 92 91
3.5 Norms and Standard
Current payment 4,702 (161) 4,541 3,533 1,008 77.8% 4,449 3,804
Transfers and subsidies
Payment for capital assets 52 (41) 11 10 1 90.9% 54 53
Payment for financial assets
3.6 Support and Interlinked
Financial Systems
Current payment 114,479 (300) 114,179 114,020 159 99.9% 103,679 101,121
Transfers and subsidies
Payment for capital assets 2,712 583 3,295 3,295 100.0% 3,575 1,055
Payment for financial assets
Total 225,391 5,988 231,379 212,094 19,285 91.7% 213,595 164,794
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 86 -
2012/13 2011/12
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 48,482 48,482 42,814 5,668 88.3% 38,802 34,784
Goods and services 168,162 5,367 173,529 164,975 8,554 95.1% 140,143 126,688
Interest and rent on land 4,300 4,300 4,300 29,000 1,006
Transfers and subsidies to:
Provinces and municipalities
Households 1,357 (40) 1,317 556 761 42.2% 1,300 689
Gifts and donations
Payment for capital assets
Machinery and equipment 3,090 267 3,357 3,355 2 99.9% 3,733 1,011
Software and other intangible assets 394 394 394 100.0% 525 525
Payments for financial assets 92 91
Total 225,391 5,988 231,379 212,094 19,285 91.7% 213,595 164,794
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 87 -
2012/13 2011/12
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
PROGRAMME 4: INTERNAL AUDIT
4.1 Assurance Services
Current payment 59,579 59,579 53,715 5,864 90.2% 48,271 40,480
Transfers and subsidies 29 29 29 100.0%
Payment for capital assets 698 (394) 304 293 11 96.4% 461 255
Payment for financial assets 14 14 13 1 92.9% 4 3
4.2 Risk Management
Current payment 46,580 46,580 39,045 7,535 83.8% 47,294 34,191
Transfers and subsidies
Payment for capital assets 60 60 59 1 98.3% 230 230
Payment for financial assets 10 10
Total 106,931 (365) 106,566 93,154 13,412 87.4% 96,270 75,169
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 88 -
2012/13 2011/12
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 52,070 52,070 46,283 5,787 88.9% 39,325 35,167
Goods and services 54,089 54,089 46,477 7,612 85.9% 56,240 39,504
Interest and rent on land
Transfers and subsidies to:
Provinces and municipalities
Households 29 29 29 100.0%
Gifts and donations
Payment for capital assets
Machinery and equipment 758 (394) 364 352 12 96.7% 691 485
Software and other intangible assets
Payments for financial assets 14 14 13 1 92.9% 14 13
Total 106,931 (365) 106,566 93,154 13,412 87.4% 96,270 75,169
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 89 -
2012/13 2011/12
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
PROGRAMME 4: INTERNAL AUDIT
5.1 Budget Communications
Current payment 7,094 7,094 6,032 1,062 85.0% 7,024 6,457
Transfers and subsidies
Payment for capital assets
Payment for financial assets
5.2 Special Infrastructure Projects
Current payment 8,188 (1000) 7,188 2,273 4,915 31.6%
Transfers and subsidies 53,863 1,000 54,863 28,012 26,851 51.1% 39,038 31,264
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
5.4 Air Shows
Current payment 2,000 2,000 2,000 2,000 100.0%
Transfers and subsidies
Payment for capital assets
Payment for financial assets
Total 71,145 71,145 38,317 32,828 53.9% 46,062 37,721
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 90 -
2012/13 2011/12
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 17,282 (1000) 16,282 10,305 5,977 63.3% 7,024 6,457
Interest and rent on land
Transfers and subsidies to:
Provinces and municipalities 53,863 1,000 54,863 28,012 26,851 51.1% 39,038 31,264
Households
Gifts and donations
Payment for capital assets
Machinery and equipment
Software and other intangible assets
Payments for financial assets
Total 71,145 71,145 38,317 32,828 53.9% 46,062 37,721
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE APPROPRIATION STATEMENT FOR THE YEAR E NDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 91 -
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 109,137 97,905 11,232 10.29%
Administration was under-spent by R11.2 million. The under-spending was mainly attributed to delays
in the filling of funded vacant posts as a result of staff turnover, shortage of skills, delays in organisational restructuring of all Provincial Treasuries, and unavailability of office space. There was also lower printing and travel costs as a result of the implementation of stringent cost-cutting measures, lower than anticipated audit (as a result of the audit process being shorter than originally anticipated) and legal costs, as well as under-spending on the Thuthuka Bursary fund.
Fiscal Resource Management 95,008 76,870 18,138 19.09% Fiscal Resource Management was under-spent at year-end by R18.1 million as a result of non filling of
funded vacant posts due to lack of suitable candidates, as well as delays in the receipt of invoices in respect of Infrastructure Crack Team projects at municipalities, totalling R7 million. Also, projects under the Municipal Support Programme (MSP), such as cashflow management, were under-spent by R2,4 million due to the late receipt of invoices.
Financial Management 231,379 212,094 19,285 8.33% Financial Management was under-spent by R19.3 million as a result of savings in respect of the unused
allocation totalling R4.3 million on interest on overdraft, attributed to the improvement in the funds available in the Pay Master's General (PMG) and the Inter-Government Cash Co-ordination (IGCC) accounts, resulting in the province earning interest as opposed to paying it. Also, the process of procuring a service provider the E-Procurement Tool project took longer than expected, thus under-spending of R6 million against this project occurred. Contract Management was under-spent by R2.4 million due to invoices from service providers not being received by year-end. A roll-over in respect of this has been requested. There was under-spending of R5.6 million on Compensation of employees due to lack of suitably qualified candidates, as well as under-spending of R871 000 in respect of lower than budgeted staff exit packages, also accounting for the under-spending at year-end.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE APPROPRIATION STATEMENT FOR THE YEAR E NDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 92 -
Internal Audit 106,566 93,154 13,412 12.59% Internal Audit was under spent at year-end by R13.4 million, due to savings emanating from the non-
filling of funded vacant posts due to difficulty in finding suitably qualified candidates, as well as high staff
turnover. Also, there were delays in the submission of invoices from service providers for internal audit
projects, such as undertaking audits and forensic investigations.
Growth and Development 71,145 38,317 32,828 46.14% Growth and Development was under-spent by R32.8 million, due to delays in the approval of the new
Airport Master Plan for extension of the Pietermaritzburg Airport and the Environmental Impact
Assessments (EIA) report, delays in the appointment of service providers by the Greater Kokstad
Municipality for the Shayamoya Eco-complex, delays in obtaining council's approval for the newly
identified site for the development of the light industrial park at Bhongweni in the Greater Kokstad
Municipality, delays in the receipts of invoices from Transactional Advisors, who undertook the
feasibility study for the provincial Precinct Office Park project. Funds of R3.3 million were allocated for
upgrading of the Richards Bay and Margate airports. An amount of R1 million was spent on Richards
Bay airport and the remaining R2.3 million was not spent in respect of Margate airport, thus a roll-over
request has been requested for upgrading to take place in 2013/14.
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 538,819 474,802 64,017 11.88%
Compensation of employees 183,479 163,143 20,336 11.08%
Goods and services 351,040 311,659 39,381 11.22%
Interest and rent on land 4,300 4,300 100.0%
Compensation of employees was under-spent by R20.3 million due to delays in the filling of funded
vacant posts resulting from staff turnover, difficulty in finding suitably qualified candidates and delays in
the finalisation of the organisational restructuring of all Provincial Treasuries.
Good and services reflects under-expenditure of R39.4 million due to lower than anticipated audit
costs, savings from advertisements, travel and printing costs as a result of stringent cost-cutting, delays
in the submission of invoices in respect of the Infrastructure Crack Team projects at municipalities,
totalling R7 million, committed projects under the MSP, totalling R2.4 million, as well as internal audit
and forensic investigations. The appointment of service providers for the E-Procurement Tool also took
longer than expected.
Interest and rent on land reflects a saving of R4.3 million relating to an improvement in the funds
available in the PMG and IGCC accounts.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE APPROPRIATION STATEMENT FOR THE YEAR E NDED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 93 -
Transfers and subsidies 68,469 37,624 30,845 45.05%
Provinces and municipalities 54,877 28,026 26,851 48.93%
Households 13,592 9,598 3,994 29,38%
Provinces and municipalities reflects under-spending of R26.9 million resulting from delays in the
appointment of service providers for the Shayamoya Eco-complex at Kokstad, delays in the
commencement of a light industrial park at Bhongweni, as well as delays in the development of the
Pietermaritzburg airport resulting from delays in the approval of the Airport Master Plan and EIA. Also,
delays in the receipt of invoices in respect of work done on the Prince Mangosuthu Buthelezi and
Richards Bay airports contributed to the year-end under-expenditure.
Households was under-spent at year-end by R4 million mainly due to the delays in finalisation of
recruitment process for the Thuthuka Bursary Fund by the South African Institute of Chartered
Accountants (SAICA). Due to the under-spending at year-end against this project, the department has
requested a roll-over of R3.2 million.
Payments for capital assets 5,933 5,901 32 0.54%
Machinery and equipment 5,539 5,507 32 0.58%
Software and other intangible assets 394 394 0 0.00%
Machinery and equipment was under-spent at year-end by R32 000 resulting from the late delivery of
computer equipment.
Payments for financial assets 14 13 1 7.14%
Payment for financial assets was under-spent by R1 000 due to an-overprovision for thefts and losses.
613,235 518,340 94,895 15.47%
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR END ED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 94 -
PERFORMANCE Note 2012/13 2011/12 R'000 R'000 REVENUE
Annual appropriation 1 613,235 510,024 Departmental revenue 2 45,343 56,253 TOTAL REVENUE 658,578 566,277 EXPENDITURE
Current expenditure Compensation of employees 3 163,143 127,078 Goods and services 4 311,659 225,784 Interest and rent on land 5 1,006 Total current expenditure 474,802 353,868 Transfers and subsidies Transfers and subsidies 7 37,624 32,406 Total transfers and subsidies 37,624 32,406 Expenditure for capital assets Tangible capital assets 8 5,507 3,294 Software and other intangible assets 8 394 525 Total expenditure for capital assets 5,901 3,819 Payments for financial assets 6 13 232 TOTAL EXPENDITURE 518,340 390,325 SURPLUS/(DEFICIT) FOR THE YEAR 140,238 175,952
Reconciliation of Net Surplus/(Deficit) for the yea r
Voted funds 94,895 119,699
Annual appropriation 94,895 119,699
Departmental revenue and NRF Receipts 14 45,343 56,253
SURPLUS/(DEFICIT) FOR THE YEAR 140, 238 175,952
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 95 -
POSITION Note 2012/13 2011/12
R'000 R'000
ASSETS
Current assets
Cash and cash equivalents 10 13,027 20,080
Prepayments and advances 11 8 23
Receivables 12 2,819 34,653
TOTAL ASSETS 15,854 54,756
LIABILITIES
Current liabilities
Voted funds to be surrendered to the Revenue Fund 13 14,895 49,699
Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund
14 20 4,327
Payables 15 3 41
TOTAL LIABILITIES 14,918 54,067
NET ASSETS 936 689
Note 2012/13 2011/12 R'000 R'000
Represented by: Recoverable revenue 936 689
TOTAL 936 689
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR END ED 31 MARCH 2013
2012/13 AFS KZN Provincial Treasury - 96 -
NET ASSETS
Note
2012/13
2011/12 R'000 R'000 Recoverable revenue Opening balance 689 664 Transfers: 247 25
Debts recovered (included in departmental receipts)
(279) (186)
Debts raised 526 211 Closing balance 936 689
TOTAL 936 689
KWAZULU NATAL PROVINCIAL TREASURY VOTE 6
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 201 3
2012/13 AFS KZN Provincial Treasury - 97 -
CASH FLOW Note 2012/13 2011/12 R'000 R’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts 578,543 495,513
Annual appropriated funds received 1.1 533,235 440,024
Departmental revenue received 2 45,308 55,489
Net (increase)/decrease in working capital 31,811 109,758
Surrendered to Revenue Fund (99,349) (206,623)
Current payments (474,802) (353,868)
Payments for financial assets (13) (232)
Transfers and subsidies paid (37,624) (32,406)
Net cash flow available from operating activities 16 (1,434) 12,142
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for capital assets 8 (5,901) (3,819)
Proceeds from sale of capital assets 2.3 32 760
Net cash flows from investing activities (5,869) (3,059)
CASH FLOWS FROM FINANCING ACTIVITIES
Distribution/dividend received 3 4
Increase/(decrease) in net assets 247 25
Net cash flows from financing activities 250 29
Net increase/(decrease) in cash and cash equivalents (7,053) 9,112
Cash and cash equivalents at beginning of period 20,080 10,968
Cash and cash equivalents at end of period 17 13,027 20,080
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 201 3
2012/13 AFS KZN Provincial Treasury - 98 -
The Financial Statements have been prepared in accordance with the following policies, which
have been applied consistently in all material aspects, unless otherwise indicated. However,
where appropriate and meaningful, additional information has been disclosed to enhance the
usefulness of the Financial Statements and to comply with the statutory requirements of the
Public Finance Management Act, Act 1 of 1999 (as amended by Act 29 of 1999), and the
Treasury Regulations issued in terms of the Act and the Division of Revenue Act, Act 1 of 2012.
1. Presentation of the Financial Statements
1.1 Basis of preparation
The financial statements have been prepared on a modified cash basis of accounting. Under
this basis, the effects of transactions and other events are recognised in the financial records
when the resulting cash is received or paid. The “modification” results from the recognition of
certain near-cash balances in the financial statements as well as the revaluation of foreign
investments and loans and the recognition of resulting revaluation gains and losses.
In addition, supplementary information is provided in the disclosure notes to the financial
statements where it is deemed to be useful to the users of the financial statements.
1.2 Presentation currency
All amounts have been presented in the currency of the South African Rand (R) which is also
the functional currency of the department.
1.3 Rounding
Unless otherwise stated, all financial figures have been rounded to the nearest one thousand
Rand (R’000).
1.4 Comparative figures
Prior period comparative information has been presented in the current year’s financial
statements. Where necessary, figures included in the prior period financial statements have
been reclassified to ensure that the format in which the information is presented is consistent
with the format of the current year’s financial statements.
1.5 Comparative figures - Appropriation Statement
A comparison between actual amounts and final appropriation per major classification of
expenditure is included in the Appropriation Statement.
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2. Revenue
2.1 Appropriated funds
Appropriated funds comprises of departmental allocations as well as direct charges against
revenue fund (i.e. statutory appropriation).
Appropriated funds are recognised in the financial records on the date the appropriation
becomes effective.Adjustments made in terms of the adjustments budget process are
recognised in the financial records on the date the adjustments become effective.
Unexpended appropriated funds are surrendered to the Provincial Revenue Fund. Any amounts
owing to the Provincial Revenue Fund at the end of the financial year are recognised as payable
in the statement of financial position.
Any amount due from the Provincial Revenue Fund at the end of the financial year is recognised
as a receivable in the statement of financial position.
2.2 Departmental revenue
All departmental revenue is recognised in the statement of financial performance when received
and is subsequently paid into the Provincial Revenue Fund, unless stated otherwise.
Any amount owing to the Provincial Revenue Fund at the end of the financial year is recognised
as a payable in the statement of financial position.
No accrual is made for amounts receivable from the last receipt date to the end of the reporting
period. These amounts are, however, disclosed in the disclosure notes to the annual financial
statements.
2.3 Direct Exchequer receipts
All direct exchequer receipts are recognised in the statement of financial performance when the
cash is received and is subsequently paid into the Provincial Revenue Fund, unless stated
otherwise.
Any amount owing to the Provincial Revenue Fund at the end of the financial year is recognised
as a payable in the statement of financial position.
2.4 Direct Exchequer payments
All direct exchequer payments are recognised in the statement of financial performance when
final authorisation for payment is effected on the system (no later than 31 March of each year).
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2.5 Aid assistance
Aids assistance is recognised as revenue when received.
All in-kind aid assistance is disclosed at fair value on the date of receipt in the annexure to the
Annual Financial Statements
The cash payments made during the year relating to aid assistance projects are recognised as
expenditure in the statement of financial performance when final authorisation for payments is
effected on the system (by no later than 31 March of each year).
The value of the assistance expensed prior to the receipt of funds is recognised as a receivable
in the statement of financial position.
Inappropriately expensed amounts using aid assistance and any unutilised amounts are
recognised as payables in the statement of financial position.
All CARA funds received must be recorded as revenue when funds are received. The cash
payments made during the year relating to CARA earmarked projects are recognised as
expenditure in the statement of financial performance when final authorisation for payments
effected on the system (by no later than 31 March of each year).
Inappropriately expensed amounts using CARA funds are recognised as payables in the
statement of financial position. Any unutilised amounts are transferred to retained funds as they
are not surrendered to the revenue fund.
3. Expenditure
3.1 Compensation of employees
3.1.1 Salaries and wages
Salaries and wages are expensed in the statement of financial performance when the final
authorisation for payment is effected on the system (by no later than 31 March of each year).
Other employee benefits that give rise to a present legal or constructive obligation are disclosed
in the disclosure notes to the financial statements at its face value and are not recognised in the
statement of financial performance or position.
Employee costs are capitalised to the cost of a capital project when an employee spends more
than 50 per cent of his/her time on the project. These payments form part of expenditure for
capital assets in the statement of financial performance.
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3.1.2 Social contributions
Employer contributions to post employment benefit plans in respect of current employees are
expensed in the statement of financial performance when the final authorisation for payment is
effected on the system (by no later than 31 March of each year).
No provision is made for retirement benefits in the financial statements of the department. Any
potential liabilities are disclosed in the financial statements of the Provincial Revenue Fund and
not in the financial statements of the employer department.
Employer contributions made by the department for certain of its ex-employees (such as medical
benefits) are classified as transfers to households in the statement of financial performance.
3.2 Goods and services
Payments made during the year for goods and/or services are recognised as an expense in the
statement of financial performance when the final authorisation for payment is effected on the
system (by no later than 31 March of each year).
The expense is classified as capital if the goods and/or services were acquired for a capital
project or if the total purchase price exceeds the capitalisation threshold (currently R5,000). All
other expenditures are classified as current.
Rental paid for the use of buildings or other fixed structures is classified as goods and services
and not as rent on land.
3.3 Interest and rent on land
Interest and rental payments are recognised as an expense in the statement of financial
performance when the final authorisation for payment is effected on the system (by no later than
31 March of each year). This item excludes rental for the use of buildings or other fixed
structures. If it is not possible to distinguish between payment for the use of land and the fixed
structures on it, the whole amount should be recorded under goods and services.
3.4 Payments for financial assets
Debts are written off when identified as irrecoverable. Debts written-off are limited to the amount
of savings and/or under-spending of appropriated funds. The write off occurs at year-end or
when funds are available. No provision is made for irrecoverable amounts but an estimate is
included in the disclosure notes to the financial statements.
All other losses are recognised when authorisation has been granted for the recognition thereof.
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3.5 Transfers and subsidies
Transfers and subsidies are recognised as an expense when the final authorisation for payment
is effected on the system (by no later than 31 March of each year).
3.6 Unauthorised expenditure
When confirmed unauthorised expenditure is recognised as an asset in the statement of
financial position until such time as the expenditure is either approved by the relevant authority,
recovered from the responsible person or written off as irrecoverable in the statement of financial
performance.
Unauthorised expenditure approved with funding is derecognised from the statement of financial
position when the unauthorised expenditure is approved and the related funds are received.
Where the amount is approved without funding, it is recognised as expenditure in the statement
of financial performance on the date stipulated in the Act.
3.7 Fruitless and wasteful expenditure
Fruitless and wasteful expenditure is recognised as expenditure in the statement of financial
performance according to the nature of the payment and not as a separate line item on the face
of the statement. If the expenditure is recoverable it is treated as an asset until it is recovered
from the responsible person or written off as irrecoverable in the statement of financial
performance.
3.8 Irregular expenditure
Irregular expenditure is recognised as expenditure in the statement of financial performance. If
the expenditure is not condoned by the relevant authority, it is treated as an asset until it is
recovered or written off as irrecoverable.
4. Assets
4.1 Cash and cash equivalents
Cash and cash equivalents are carried in the statement of financial position at cost.
Bank overdrafts are shown separately on the face of the statement of financial position.
For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand,
deposits held, other short-term highly liquid investments and bank overdrafts.
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4.2 Other financial assets
Other financial assets are carried in the statement of financial position at cost.
4.3 Prepayments and advances
Amounts prepaid or advanced are recognised in the statement of financial position when the
payments are made and are derecognised as and when the goods/services are received or the
funds are utilised.
Prepayments and advances outstanding at the end of the year are carried in the statement of
financial position at cost.
4.4 Receivables
Receivables included in the statement of financial position arise from cash payments made that
are recoverable from another party (including departmental employees) and are derecognised
upon recovery or write-off.
Receivables outstanding at year-end are carried in the statement of financial position at cost
plus any accrued interest. Amounts that are potentially irrecoverable are included in the
disclosure notes.
4.5 Investments
Capitalised investments are shown at cost in the statement of financial position. Investments are
tested for an impairment loss whenever events or changes in circumstances indicate that the
investment may be impaired. Any impairment loss is included in the disclosure notes.
4.6 Loans
Loans are recognised in the statement of financial position when the cash is paid to the
beneficiary. Loans that are outstanding at year-end are carried in the statement of financial
position at cost plus accrued interest.
Amounts that are potentially irrecoverable are included in the disclosure notes.
4.7 Inventory
Inventories that qualify for recognition must be initially reflected at cost.
Where inventories are acquired at no cost, or for nominal consideration, their cost shall be their
fair value at the date of acquisition.
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All inventory items at year-end are reflected using the weighted average cost or FIFO cost
formula.
4.8 Capital assets
4.8.1 Movable assets
Initial recognition
A capital asset is recorded in the asset register on receipt of the item at cost. Cost of an asset is
defined as the total cost of acquisition. Where the cost cannot be determined accurately, the
movable capital asset is stated at fair value. Where fair value cannot be determined, the capital
asset is included in the asset register at R1.
All assets acquired prior to 1 April 2002 are included in the register R1.
Subsequent recognition
Subsequent expenditure of a capital nature is recorded in the statement of financial performance
as “expenditure for capital assets” and is capitalised in the asset register of the department on
completion of the project.
Repairs and maintenance is expensed as current “goods and services” in the statement of
financial performance.
4.8.2 Immovable assets
Initial recognition
A capital asset is recorded on receipt of the item at cost. Cost of an asset is defined as the total
cost of acquisition. Where the cost cannot be determined accurately, the immovable capital
asset is stated at R1 unless the fair value for the asset has been reliably estimated.
Subsequent recognition
Work-in-progress of a capital nature is recorded in the statement of financial performance as
“expenditure for capital assets”. On completion, the total cost of the project is included in the
asset register of the department that is accountable for the asset.
Repairs and maintenance is expensed as current “goods and services” in the statement of
financial performance.
KWAZULU NATAL PROVINCIAL TREASURY VOTE 6
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4.8.3 Intangible assets
Initial recognition
An intangible asset is recorded in the asset register on receipt of the item at cost. Cost of an
intangible asset is defined as the total cost of acquisition. Where the cost cannot be determined
accurately, the intangible asset is stated at fair value. Where fair value cannot be determined,
the intangible asset is included in the asset register at R1.
All intangible assets acquired prior to 1 April 2002 can be included in the asset register at R1.*
Subsequent expenditure
Subsequent expenditure of a capital nature is recorded in the statement of financial performance
as “expenditure for capital asset” and is capitalised in the asset register of the department.
Maintenance is expensed as current “goods and services” in the statement of financial
performance.
5. Liabilities
5.1 Payables
Recognised payables mainly comprise of amounts owing to other governmental entities. These
payables are carried at cost in the statement of financial position.
5.2 Contingent liabilities
Contingent liabilities are included in the disclosure notes to the financial statements when it is
possible that economic benefits will flow from the department, or when an outflow of economic
benefits or service potential is probable but cannot be measured reliably.
5.3 Contingent assets
Contingent assets are included in the disclosure notes to the financial statements when it is
probable that an inflow of economic benefits will flow to the entity.
5.4 Commitments
Commitments are not recognised in the statement of financial position as a liability or as
expenditure in the statement of financial performance but are included in the disclosure notes.
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5.5 Accruals
Accruals are not recognised in the statement of financial position as a liability or as expenditure
in the statement of financial performance but are included in the disclosure notes.
5.6 Employee benefits
Short-term employee benefits that give rise to a present legal or constructive obligation are
disclosed in the disclosure notes to the financial statements. These amounts are not recognised
in the statement of financial performance or the statement of financial position.
5.7 Lease commitments
Finance lease
Finance leases are not recognised as assets and liabilities in the statement of financial position.
Finance lease payments are recognised as a capital expense in the statement of financial
performance and are not apportioned between the capital and the interest portions. The total
finance lease payment is disclosed in the disclosure notes to the financial statements.
Operating lease
Operating lease payments are recognised as an expense in the statement of financial
performance. The operating lease commitments are disclosed in the discloser notes to the
financial statement.
5.8 Impairment
The department tests for impairment where there is an indication that a receivable, loan or
investment may be impaired. An assessment of whether there is an indication of possible
impairment is done at each reporting date. An estimate is made for doubtful loans and
receivables based on a review of all outstanding amounts at year-end. Impairments on
investments are calculated as being the difference between the carrying amount and the present
value of the expected future cash flows / service potential flowing from the instrument.
5.9 Provisions
Provisions are disclosed when there is a present legal or constructive obligation to forfeit
economic benefits as a result of events in the past and it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable estimate of
the obligation can be made.
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6. Receivables for departmental revenue
Receivables for departmental revenue are disclosed in the disclosure notes to the annual
financial statements. These receivables are written off when identified as irrecoverable and are
disclosed separately.
7. Net Assets
7.1 Capitalisation reserve
The capitalisation reserve comprises of financial assets and/or liabilities originating in a prior
reporting period but which are recognised in the statement of financial position for the first time
in the current reporting period. Amounts are recognised in the capitalisation reserves when
identified in the current period and are transferred to the Provincial Revenue Fund when the
underlying asset is disposed and the related funds are received.
7.2 Recoverable revenue
Amounts are recognised as recoverable revenue when a payment made in a previous financial
year becomes recoverable from a debtor in the current financial year. Amounts are either
transferred to the Provincial Revenue Fund when recovered or are transferred to the statement
of financial performance when written-off.
8. Related party transactions
Specific information with regards to related party transactions is included in the disclosure notes.
9. Key management personnel
Compensation paid to key management personnel including their family members where
relevant, is included in the disclosure notes.
10. Public private partnerships
A description of the PPP arrangement, the contract fees and current and capital expenditure
relating to the PPP arrangement is included in the disclosure notes.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 108 -
1. Annual Appropriation
1.1 Annual Appropriation
Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation
Act) for (Voted funds) provincial departments:
2012/13 2011/12 Final
Appropriation Actual funds
received Funds not
requested/ not received
Appropriation received
R’000 R’000 R’000 R’000 Administration 109,137 99,645 9,492 93,861 Fiscal Resource Management
95,008 82,758 12,250 35,844
Financial Management 231,379 195,987 35,392 185,601 Internal Audit 106,566 92,981 13,585 78,656 Growth and Development
71,145 61,864 9,281 46,062
Total 613,235 533,235 80,000 440,024
Requisition for funds was forwarded to Provincial Banking Services at the beginning of the financial year.
2. Departmental revenue Note 2012/13 2011/12 R’000 R’000
Tax revenue
Sales of goods and services other than capital assets 2.1 159 152
Fines, penalties and forfeits 2.2
Interest, dividends and rent on land 2.3 44,715 55,008
Sales of capital assets 2.4 32 760
Transactions in financial assets and liabilities 2.5 437 333
Transfer received 2.6
Total revenue collected 45,343 56,253
Less: Own revenue included in appropriation 22
Departmental revenue collected 45,343 56,253
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 109 -
2.1 Sales of goods and services other than capital assets
Note 2012/13 2011/12 2 R’000 R’000 Sales of goods and services produced by the department 158 149
Sales by market establishment 49 48 Administrative fees 51 50 Other sales 58 51
Sales of scrap, waste and other used current goods 1 3 Total 159 152
2.2 Interest, dividends and rent on land Note 2012/13 2011/12 2 R’000 R’000 Interest 44,712 55,004 Dividends 3 4 Total 44,715 55,008
2.3 Sale of capital assets Note 2012/13 2011/12 2 R’000 R’000 Tangible assets 32 760
Machinery and equipment 32 760
Total 32 760
2.4 Transactions in financial assets and liabilitie s Note 2012/13 2011/12 2 R’000 R’000 Receivables 437 117 Other Receipts including Recoverable Revenue 216 Total 437 333
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 110 -
3. Compensation of employees
3.1 Salaries and wages
Note 2012/13 2011/12 R’000 R’000 Basic salary 112,320 85,733 Performance award 2,224 1,594 Service based 142 182 Compensative/circumstantial 1,844 1,542 Periodic payments 676 367 Other non-pensionable allowances 28,445 22,887 Total 145,651 112,305
3.2 Social contributions
Note 2012/13 2011/12 R’000 R’000 Employer contributions Pension 13,131 11,014 Medical 4,340 3,742 Bargaining council 21 17 Total 17,492 14,773
Total compensation of employees 163,143 127,078 Average number of employees 477 452
4. Goods and services
Note 2012/13 2011/12 R’000 R’000 Administrative fees 10,315 9,999 Advertising 4,129 2,609 Assets less than R5,000 4.1 497 989 Bursaries (employees) 297 227 Catering 2,199 1,867 Communication 2,357 1,706 Computer services 4.2 110,935 97,452 Consultants, contractors & agency/outsourced services 4.3 129,502 56,302 Entertainment 6 2 Audit cost – external 4.4 4,526 6,700 Fleet services 1,017 949
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 111 -
Inventory 4.5 2,018 2,329 Operating leases 14,805 11,789 Property payments 4.6 7,854 7,335 Transport provided as part of the departmental activities 531 992 Travel and subsistence 4.7 14,143 8,144 Venues and facilities 2,554 1,957 Training and staff development 1,572 2,085 Other operating expenditure 4.8 2,402 12,351
Total 311,659 225,784
4.1 Assets less than R5,000
Note 2012/13 2011/12 4 R’000 R’000 Tangible assets
Machinery and equipment 497 989 Total 497 989
4.2 Computer services
Note 2012/13 2011/12 4 R’000 R’000 SITA computer services 84,343 86,282 External computer service providers 26,592 11,170 Total 110,935 97,452
4.3 Consultants, contractors and agency/outsourced services
Note 2012/13 2011/12 4 R’000 R’000 Business and advisory services 122,751 50,080 Legal costs 1,659 2,270 Contractors 4,574 2,771 Agency and support/outsourced services 518 1,181 Total 129,502 56,302
4.4 Audit cost – External
Note 2012/13 2011/12 4 R’000 R’000 Regularity audits 3,799 3,585 Performance audits 281 2,929 Computer audits 446 186 Total 4,526 6,700
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 112 -
4.5 Inventory
Note 2012/13 2011/12
4 R’000 R’000 Learning and teaching support material 61 27 Food and food supplies 214 129 Fuel, oil and gas Other consumables 194 105 Materials and supplies 27 310 Stationery and printing 1,520 1,758 Medicine 2 Total 2,018 2,329
4.6 Property payments
Note 2012/13 2011/12 4 R’000 R’000 Municipal services 3,038 1,710 Property maintenance and repairs 4,816 2,625 Other 3,000 Total 7,854 7,335
4.7 Travel and subsistence
Note 2012/13 2011/12
4 R’000 R’000 Local 11,854 7,940 Foreign 2,289 204 Total 14,143 8,144
4.8 Other operating expenditure
Note 2012/13 2011/12 4 R’000 R’000 Learnerships 417 11,097 Professional bodies, membership & subscription fees 282 153 Resettlement costs 179 189 Other 1,524 912 Total 2,402 12,351
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 113 -
5. Interest and rent on land
Note 2012/13 2011/12 R’000 R’000
Interest paid 1,006 Total 1,006
6. Payments for financial assets
Note 2012/13 2011/12 R’000 R’000 Material losses through criminal conduct
Other material losses 6.1 110 Debts written off 6.2 13 122 Total 13 232
6.1 Other material losses written off
Note 2012/13 2011/12 6 R’000 R’000
Nature of losses Interdepartmental accounts 110 Total 110
6.2 Debts written off
Note 2012/13 2011/12 6 R’000 R’000
Other debt written off Other debtors 13 122 Total 13 122 Total debt written off 13 122
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 114 -
7. Transfers and subsidies
2012/13 2011/12 R’000 R’000 Note Provinces and municipalities 47, 48, Annex
1A, Annex 1B
28,012 31,264
Departmental agencies and accounts Annex 1C 14 Households Annex 1H 9,598 1,142 Total 37,624 32,406 Unspent funds transferred to the above beneficiaries
8. Expenditure for capital assets Note 2012/13 2011/12 R’000 R’000 Tangible assets 5,507 3,294
Machinery and equipment 43 5,507 3,294 Software and other intangible assets 394 525
Computer software 44 394 525
Total 5,901 3,819
8.1 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
Software and other intangible assets 394 394 Computer software 394 394
Total 5,901 5,901
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 115 -
8.2 Analysis of funds utilised to acquire capital a ssets – 2011/12
Voted funds Aid
assistance Total
R’000 R’000 R’000 Tangible assets
Machinery and equipment 3,294 3,294 Software and other intangible assets
Computer software 525 525 Total 3,819 3,819
9. Unauthorised expenditure 9.1 Reconciliation of unauthorised expenditure
Note 2012/13 2011/12 R’000 R’000 Opening balance 102,258 Less: Amounts approved by Parliament/Legislature with
funding (102.258)
Unauthorised expenditure awaiting authorisation / written off
10. Cash and cash equivalents Note 2012/13 2011/12 R’000 R’000 Consolidated Paymaster General Account 13,023 20,076 Cash on hand 4 4 Total 13,027 20,080
11. Prepayments and advances Note 2012/13 2011/12 R’000 R’000 Staff advances Travel and subsistence 8 23 Total 8 23
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 116 -
12. Receivables 2012/13 2011/12
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 12.1
Annex
4
1,104 201 171 1,476 33,639
Trade receivables Recoverable
expenditure 12.2 35 27 62 29
Staff debt 12.3 80 68 123 271 45 Other debtors 12.4 96 745 169 1,010 940 Total 1,315 1,041 463 2,819 34,653
12.1 Claims recoverable Note 2012/13 2011/12
12 R’000 R’000 National departments 9 Provincial departments 991 33,259 Private Enterprise 114 Local governments 371 371 Total 1,476 33,639
12.2 Recoverable expenditure (disallowance accounts )
Note 2012/13 2011/12 12 R’000 R’000
Sal: Tax debts 62 27 Disall damages and losses 100 97 Disall damages and losses (100) (97) Dishonoured cheques 2 Total 62 29
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 117 -
12.3 Staff debt
Note 2012/13 2011/12 12 R’000 R’000
Tax debts 3 Bursary debts 262 19 Overpaid salaries 3 10 Losses and damages 7 Housing 6 6 Total 271 45
12.4 Other debtors
Note 2012/13 2011/12 12 R’000 R’000
Bursary debts 823 721 Losses and damages 38 22 Travel and subsistence (PERSAL) 1 Tax debts 4 Overpaid salary 111 153 Subsidised vehicle 16 16 Private telephone 5 6 Other 17 17 Total 1,010 940
13. Voted funds to be surrendered to the Revenue Fu nd Note 2012/13 2011/12 R’000 R’000 Opening balance 49,699 153,564 Transfer from statement of financial performance 94,895 119,699 Voted funds not requested/not received 1.1 (80,000) (70,000) Paid during the year (49,699) (153,564) Closing balance 14,895 49,699
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 118 -
14. Departmental revenue and NRF Receipts to be sur rendered to the Revenue Fund Note 2012/13 2011/12 R’000 R’000 Opening balance 4,327 1,133 Transfer from Statement of Financial Performance 45,343 56,253 Paid during the year (49,650) (53,059) Closing balance 20 4,327
15. Payables – current Note 2012/13 2011/12
R’000 R’000
Clearing accounts 15.1 3 39 Other payables 15.2 2
Total 3 41
15.1 Clearing accounts
Note 2012/13 2011/12 15 R’000 R’000 Sal : Income Tax 3 39 Total 3 39
15.2 Other payables
Note 2012/13 2011/12
15 R’000 R’000 Description Sal: Medical 2
Total 2
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 119 -
16. Net cash flow available from operating activiti es Note 2012/13 2011/12 R’000 R’000
Net surplus/(deficit) as per Statement of Financial Performance
140,238 175,952
Add back non cash/cash movements not deemed operating activities
(141,672) (163,810)
(Increase)/decrease in receivables – current 31,834 7,541 (Increase)/decrease in prepayments and advances 15 13 (Increase)/decrease in other current assets 102,258 Increase/(decrease) in payables – current (38) (54) Proceeds from sale of capital assets (32) (760) Proceeds from sale of investments (3) (4) Expenditure on capital assets 5,901 3,819 Surrenders to Revenue Fund (99,349) (206,623) Voted funds not requested/not received (80,000) (70,000)
Net cash flow generated by operating activities (1 ,434) 12,142
17. Reconciliation of cash and cash equivalents for cash flow purposes Note 2012/13 2011/12 R’000 R’000 Consolidated Paymaster General account 13,023 20,076 Cash on hand 4 4 Total 13,027 20,080
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 120 -
These amounts are not recognised in the Annual Financial Statements and are disclosed to enhance the
usefulness of the Annual Financial Statements.
18. Contingent liabilities and contingent assets
18.1 Contingent liabilities
Note 2012/13 2011/12 R’000 R’000 Liable to Nature Housing loan guarantees Employees Annex 3A 11 Claims against the department Annex 3B 45 14 Other depts (interdept. unconfirmed balances) Annex 5 733 441 Total 778 466
19. Commitments
Note 2012/13 2011/12 R’000 R’000 Current expenditure Approved and contracted 57,120 57,568 Total Commitments 57,120 57,568
20. Accruals
2012/13 2011/12 R’000 R’000 Listed by economic classification
30 days 30+ days Total Total Goods and services 1 7,525 781 8,306 11,117 Capital assets 351 351 Total 7,525 1,132 8,657 11,117
Note 2012/13 2011/12 R’000 R’000 Listed by programme level Administration 2,830 2,941 Fiscal Resource Management 1,244 3,010 Financial Management 2,329 1,962 Internal Audit 2,180 2,384 Growth and Development 74 820 Total 8,657 11,117 Note 2012/13 2011/12 R’000 R’000 Confirmed balances with other departments Annex 5 171 8,293 Total 171 8,293
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KNZ Provincial Treasury - 121 -
21. Employee benefits
Note 2012/13 2011/12 R’000 R’000 Leave entitlement 5,188 5,188 Service bonus (Thirteenth cheque) 3,865 3,349 Performance awards 2,034 1,917 Capped leave commitments 5,068 5,068 Other 5 Total 16,160 15,522
The leave entitlement as disclosed above is the net of negative balances. The negative balance amounts to R120 000
22. Lease commitments
22.1 Operating leases expenditure 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
2011/12
Specialised military
equipment
Land Buildings and other
fixed structures
Machinery and
equipment
Total
Not later than 1 year 7,218 7,218 Later than 1 year and not later
than 5 years 29,427 29,427
Total lease commitments 36,645 36,645
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 122 -
22.2 Finance leases expenditure**
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
2011/12
Specialised military
equipment
Land Buildings and other
fixed structures
Machinery and
equipment
Total
Not later than 1 year 1,536 1,536 Later than 1 year and not
later than 5 years 300 300
Total present value of lease liabilities
1,836 1,836
23. Irregular expenditure
23.1 Reconciliation of irregular expenditure Note 2012/13 2011/12 R’000 R’000 Opening balance Add: Irregular expenditure – relating to current year 96 72 Less: Amounts condoned (96) (72) Irregular expenditure awaiting condonation
23.2 Details of irregular expenditure – current yea r Incident Disciplinary steps
taken/criminal proceedings 2012/13 R’000
Payment made without valid tax certificate 52 Payment made exceeding budgeted amount 44 Total 96
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KNZ Provincial Treasury - 123 -
23.3 Details of irregular expenditure condoned
Incident Condoned by (condoning authority) 2012/13 R’000
Payment made without valid tax certificate
Condoned by Accounting Officer authority dated 28/03/2013
52
Payment made exceeding budgeted amount
Condoned by Accounting Officer authority dated 28/03/2013
44
Total 96
24. Key management personnel
No. of
Individuals 2012/13 2011/12
R’000 R’000 Political office bearers (provide detail below) 1 1,652 1,566 Officials:
Level 15 to 16 3 4,349 3,401 Level 14 (incl. CFO if at a lower level) 10 9,071 8,986
Total 15,072 13,953
25. Movable tangible capital assets
MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASS ET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Opening
balance Current year adjustments 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
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 124 -
25.1 Additions
ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER AS SET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 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 5,507 5,507 Transport assets 1,053 1,053 Computer equipment 4,180 4,180 Furniture and office equipment 274 274 Other machinery and equipment TOTAL ADDITIONS TO MOVABLE
TANGIBLE CAPITAL ASSETS
5,507 5,507
25.2 Disposals DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER AS SET REGISTER FOR THE YEAR ENDED 31 MARCH 2013
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 854 1,037 1,891 32 Transport assets 932 932 Computer equipment 854 854 32 Furniture and office equipment 105 105 TOTAL DISPOSAL OF MOVABLE
TANGIBLE CAPITAL ASSETS
854 1,037 1,891 32
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KNZ Provincial Treasury - 125 -
25.3 Movement for 2011/12
MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASS ET REGISTER FOR THE YEAR ENDED 31 MARCH 2012 Opening
balance Additions Disposals Closing
balance R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 27,633 3,294 2,086 28,841 Transport assets 5,545 819 1,890 4,474 Computer equipment 19,032 2,061 176 20,917 Furniture and office equipment 2,571 339 20 2,890 Other machinery and equipment 485 75 560 TOTAL MOVABLE TANGIBLE ASSETS 27,633 3,294 2,086 28,841
25.4 Minor assets
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 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 Current 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 2013
2012/13 AFS KZN Provincial Treasury - 126 -
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012
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 1,528 5,020 6,548Additions 123 866 989Disposals (1,805) (1,805)TOTAL MINOR ASSETS 1,651 4,081 5,732
Specialised military assets
Intangible assets
Heritage assets
Machinery and
equipment
Biological assets
Total
No. of R1 minor assets 2,188 2,188 No. of minor assets at cost 37 2,221 2,258 TOTAL NUMBER OF MINOR ASSETS
37 4,409 4,446
26. Intangible capital assets MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REG ISTER FOR THE YEAR ENDED 31 MARCH 2013 Opening
balance Current year adjustments to prior year
balances
Additions Disposals Closing Balance
R’000 R’000 R’000 R’000 R’000
COMPUTER SOFTWARE 29,881 (1,760) 394 28,515 MASTHEADS AND PUBLISHING TITLES TOTAL INTANGIBLE CAPITAL ASSETS 29,881 (1,760) 394 28,515
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KNZ Provincial Treasury - 127 -
26.1 Additions
ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET RE GISTER FOR THE YEAR ENDED 31 MARCH 2013 Cash Non-Cash (Development
work in progress –
current costs)
Received current year,
not paid (Paid current
year, received
prior year)
Total
R’000 R’000 R’000 R’000 R’000 COMPUTER SOFTWARE 394 394 TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS
394 394
26.2 Movement for 2011/12 MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REG ISTER FOR THE YEAR ENDED 31 MARCH 2012 Opening
balance Additions Disposals Closing
balance R’000 R’000 R’000 R’000 COMPUTER SOFTWARE 29,356 525 29,881 TOTAL INTANGIBLE CAPITAL ASSETS 29,356 525 29,881
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 128 -
ANNEXURE 1A
STATEMENT OF CONDITIONAL GRANTS PAID TO MUNICIPALIT IES
NAME OF MUNICIPALITY
GRANT ALLOCATION TRANSFER SPENT 2011/12
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
KZ225 Msunduzi 16,760 16,760 574 574 574 100% 18,538 DC26 Zululand 20,000 20,000 19,661 19,661 19,661 100% 10,000 KZ82 Umhlatuza 7,041 1,000 8,041 7,777 7,777 7,777 100% 10,500
KZ5a4 Kokstad 10,062 10,062
Total 53,863 1,000 54,863 28,012 28,012 28,012 39,038
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 2013
2012/13 AFS KNZ Provincial Treasury - 129 -
ANNEXURE 1C
STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS
DEPARTMENT/ AGENCY/ ACCOUNT
TRANSFER ALLOCATION TRANSFER 2011/12 Adjusted
Appropriation Roll-overs Adjustments Total
available Actual
transfer % of
available funds
transferred
Appropriation Act
R'000 R'000 R'000 R'000 R'000 % R'000 PD Vehicles 14 14 14 100% Total 14 14 14
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 130 -
ANNEXURE 1H
STATEMENT OF TRANSFERS TO HOUSEHOLDS
HOUSEHOLDS
TRANSFER ALLOCATION EXPENDITURE 2011/12 Adjusted
Appropriation Act
Roll-overs Adjustments Total available
Actual transfer
% of available
funds transferred
Appropriation Act
R'000 R'000 R'000 R'000 R'000 % R'000 Transfers Injury on duty 9 2 Post-retirement benefits 1,332 1,332 500 38% 1,300 Severance Packages 392 392 342 87% Leave Gratuity 30 30 137 457% Bursaries(non-employee) 11,830 11,830 8,603 73% 333 Claims against State(cash) 8 8 7 88% Total 13,592 13,592 9,598 1,635
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KNZ Provincial Treasury - 131 -
ANNEXURE 1I
STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECE IVED
NAME OF ORGANISATION NATURE OF GIFT, DONATION OR SP ONSORSHIP 2012/13 2011/12
R’000 R’000
Received in kind ABSA Bank Sponsorship for the 2012 post Budget Breakfast 65 ESP Consulting Sponsorship for the year-end function 2 MR M Francis Sponsorship for the year-end function 2 Deloitte Sponsorship for the year-end function 2 Genius Management Solutions Sponsorship for the year-end function 2 Ashira&Ngidi Sponsorship for the year-end function 2 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 TOTAL 316 75
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 132 -
ANNEXURE 3A
STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 M ARCH 2013 – LOCAL
Guarantor institution
Guarantee in respect of
Original guaranteed
capital amount
Opening balance
1 April 2012
Guarantees draw downs
during the year
Guarantees repayments/ cancelled/ reduced/
released during the year
Revaluations Closing balance
31 March 2013
Guaranteed interest for year ended 31 March
2013
Realised losses not recoverable i.e. claims paid out
R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 Housing
ABSA BANK Housing 55 11 11 Total 55 11 11
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KNZ Provincial Treasury - 133 -
ANNEXURE 3B
STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2013
Nature of liability
Opening balance
1 April 2012
Liabilities incurred
during the year
Liabilities paid/
cancelled/ reduced
during the year
Liabilities recoverable
Closing balance
31 March 2013
R’000 R’000 R’000 R’000 R’000
Claims against the department
Claims against the state 14 14 Claims against the state Legal Fees 45 45
TOTAL 14 45 14 45
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 134 -
ANNEXURE 4
CLAIMS RECOVERABLE
Government entity
Confirmed balance outstanding
Unconfirmed balance outstanding Total
31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012
R’000 R’000 R’000 R’000 R’000 R’000
Department EC Economic Development 12 12 EC Provincial Treasury 6 6 FS Tourism, Environmental and Economic Affairs 1 1 GP Water Affairs 9 9 KZ Agriculture and Environmental Affairs 1 3 1 3 KZ Co-operative Government and Traditional Affairs 2 2 KZ Education 33,195 33,195 KZ Health 4 4 KZ Social Development 872 27 872 27 South African Police Services 9 9 KZ Sport and Recreation 101 101 Independent Complaints 16 16 NW Finance 1 1 101 890 33,268 991 33,268 Other government entities Newcastle Municipality 171 171 171 171 eDumbe Municipality 200 200 200 200 371 371 371 371 Private entities Pro M Consulting 114 114 TOTAL 101 1,375 33,639 1,476 33,639
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 135 -
ANNEXURE 5
INTER-GOVERNMENT PAYABLES
GOVERNMENT ENTITY
Confirmed balance outstanding
Unconfirmed balance outstanding TOTAL
31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012 R’000 R’000 R’000 R’000 R’000 R’000
DEPARTMENTS
Current
Dept of Labour 17 16 17 16 KZ Agriculture 20 20 KZ Legislature 19 19 KZ Premier 135 7,946 328 463 7,946 KZ Social Development 181 181 181 181 KZ Transport 1 143 1 143 KZ Public Works 328 328 South African Police Services 15 15 EC Treasury 36 36 KZ Health 2 2 KZ Economic Development 4 4 Government Printing Works 168 168 Statistic SA 4 4 Subtotal 171 8,293 705 375 876 8,668 OTHER GOVT ENTITY
Current
Palama 28 66 28 66 Subtotal 28 66 28 66 Total 171 8,293 733 441 904 8,734
With regard to R181k, the department is awaiting for the signed agreement by the Treasury’s Head of the
Department (HoD) and Social Development. Currently, the department has the unsigned agreement from the
Department of Social Development.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2013
2012/13 AFS KZN Provincial Treasury - 136 -
ANNEXURE 6
INVENTORY
Inventory Note Quantity 2012/13 Quantity 2011/12 R’000 R’000
Opening balance
329
565 Add/(Less): Adjustments to prior year balance Add: Additions/Purchases - Cash 629 524 Add: Additions - Non-cash (Less): Disposals (82) (191) (Less): Issues (548) (568) Add/(Less): Adjustments 3 (1) Closing balance 331 329
No quantities have been disclosed as the inventory consists of different types of inventory and each type
has a different type of measure.
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 137 -
HR OVERSIGHT - APRIL 2012 to MARCH 2013: KwaZu lu-Natal Provincial Treasury TABLE 1.1 - Main service for service delivery impro vement and standards
Main services Actual customers Potential customers Standard of service Actual achievement against standards
Recruitment and HR Admin Staff and prospective Graduates, govt.employees and members of Public
100% compliance to standards contained in Service commitment Charter
100%
Human Resource Development Staff and learners Graduates 100% achievement of WSP strategies 85% EH&W Staff Referrals in 5 days, 4 information seminars 100% and 11 seminars Policy Development Staff Prospective 8 policies and 8 seminars 15 policies & 12 seminars
TABLE 1.2 - Consultation arrangements for customers
Type of arrangement Actual customer Potential customer Actual achievements
Consultative Forum Organised labour and representatives of every business unit within the department
n/a Conducted 3 meetings
Customer surveys Treasury staff n/a 2 surveys
Exit Interviews Exiting employees n/a 20 exit interviews
TABLE 1.3 - Service delivery access strategy
Access strategy Actual achievements
HR portal developed, continuously maintained Fully updated portal
TABLE 1.4 - Service information tool
Type of information tool Actual achievements
Information seminars 23 seminars
HR portal developed, 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 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 138 -
TABLE 2.1 - 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 per
cent of total expenditure
Average compensation of employees cost per employee
(R'000)
Employment
Kfe:Administration 97 904 43 763 0 0 44.7 101 345
Kfe:Financial Management 212 208 42 814 0 0 20.2 99 345
Kfe:Fiscal Resource Management 76 870 30 283 0 0 39.4 70 345
Kfe:Growthand Development 38 317 0 0 0 0 0 345
Kfe:Internal Audit 93 154 46 283 0 0 49.7 107 345
Z=Total on Financial Systems (BAS) 518 454 163 143 0 0 31.5 376 345
TABLE 2.2 - Personnel costs by salary band
Salary bands Compensation of employees cost (R'000)
Percentage of total personnel cost for dept.
Average compensation cost per employee (R)
Total personnel cost for dept. incl. goods and
transfers (R'000)
Number of employees
Skilled (Levels 3-5) 5 136 2.9 93 382 174 619 55
Highly skilled production (Levels 6-8) 24 521 14 314 372 174 619 78
Highly skilled supervision (Levels 9-12) 77 250 44.2 468 182 174 619 165
Senior management (Levels 13-16) 39 949 22.9 849 979 174 619 47
Contract (Levels 1-2) 1 845 1.1 205 000 174 619 9
Contract (Levels 3-5) 7 805 4.5 132 288 174 619 59
Contract (Levels 6-8) 593 0.3 118 600 174 619 5
Contract (Levels 9-12) 2 761 1.6 306 778 174 619 9
Contract (Levels 13-16) 5 134 2.9 733 429 174 619 7
Periodical remuneration 3 779 2.2 104 972 174 619 36
Abnormal appointment 526 0.3 0 174 619 0
TOTAL 169299 97 360211 174619 470
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 139 -
TABLE 2.3 - Salaries, Overtime, Home Owners Allowan ce 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 Prog.
(R'000)
Fiscal Resource Man. 24461 78.9 0 0 991 3.2 537 1.7 31013
Administration 32625 71.7 326 0.7 1138 2.5 1456 3.2 45533
Administration* 3448 74.3 8 0.2 158 3.4 167 3.6 4641
Financial Management 33112 76.5 199 0.5 995 2.3 1054 2.4 43311
Internal audit 37343 74.5 20 0 1468 2.9 1116 2.2 50122
TOTAL 130989 75 553 0.3 4750 2.7 4330 2.5 174620
TABLE 2.4 - Salaries, overtime, home owners allowan ce 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) 3522 68.5 4 0.1 339 6.6 467 9.1 5141
Highly skilled production (Levels 6-8)
17524 71 302 1.2 925 3.7 1476 6 24679
Highly skilled supervision (Levels 9-12)
59012 74.1 117 0.1 2199 2.8 2033 2.6 79636
Senior management (Levels 13-16)
33067 78.3 0 0 1276 3 354 0.8 42236
Contract (Levels 1-2) 1844 99.4 1 0.1 0 0 0 0 1856
Contract (Levels 3-5) 7741 97.8 62 0.8 0 0 0 0 7913
Contract (Levels 6-8) 551 91.7 4 0.7 11 1.8 0 0 601
Contract (Levels 9-12) 2667 95.5 63 2.3 0 0 0 0 2793
Contract (Levels 13-16) 5039 95 0 0 0 0 0 0 5304
Periodical Remuneration 0 0 0 0 0 0 0 0 3902
Abnormal Appointment 21 3.8 0 0 0 0 0 0 558
TOTAL 130988 75 553 0.3 4750 2.7 4330 2.5 174619
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 140 -
TABLE 3.1 - Employment and vacancies by programme a t end of period
Programme Number of posts
Number of posts filled
Vacancy rate Number of posts filled additional to the establishment
Fiscal Resource Management, Permanent 71 58 18.3 2
Prog 1: Administration*, Permanent 12 10 16.7 0
Prog 1: Administration, Permanent 121 108 10.7 14
Prog 3: Financial Management, Permanent 106 82 22.6 31
Prog 4: Internal Audit, Permanent 97 87 10.3 42
TOTAL 407 345 15.2 89
TABLE 3.2 - 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 57 55 3.5 0
Highly skilled production (Levels 6-8), Permanent 99 78 21.2 0
Highly skilled supervision (Levels 9-12), Permanent 196 165 15.8 0
Senior management (Levels 13-16), Permanent 55 47 14.5 0
Contract (Levels 1-2), Permanent 31 9 71 9
Contract (Levels 3-5), Permanent 66 59 10.6 59
Contract (Levels 6-8), Permanent 5 5 0 5
Contract (Levels 9-12), Permanent 9 9 0 9
Contract (Levels 13-16), Permanent 7 7 0 7
TOTAL 525 434 17.3 89
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 141 -
TABLE 3.3 - Employment and vacancies by critical oc cupation 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 2
Bus and heavy vehicle drivers, Permanent 6 6 0 0
Client inform clerks(switch, recept, inform clerks), Permanent 2 2 0 0
Communication and information related, Permanent 4 4 0 0
Economists, Permanent 1 0 100 0
Finance and economics related, Permanent 38 32 15.8 0
Financial and related professionals, Permanent 55 42 23.6 0
Financial clerks and credit controllers, Permanent 18 15 16.7 18
General legal administration and rel. professionals, Permanent 1 0 100 0
Head of department/chief executive officer, Permanent 1 1 0 1
Human resources and organis. develop and relate prof, Permanent 22 17 22.7 0
Human resources clerks, Permanent 21 17 19 0
Human resources related, Permanent 7 4 42.9 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 4 0 0
Messengers porters and deliverers, Permanent 3 3 0 0
Other administrat and related clerks and organisers, Permanent 29 25 13.8 61
Other administrative policy and related officers, Permanent 50 47 6 0
Other information technology personnel., Permanent 9 7 22.2 0
Other occupations, Permanent 0 0 0 0
Risk management and security services, Permanent 0 0 0 0
Secretaries and other keyboard operating clerks, Permanent 29 26 10.3 1
Senior managers, Permanent 53 46 13.2 6
TOTAL 407 345 15.2 89
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 142 -
TABLE 3.6 - Advertising and filling of SMS posts as at 31 March 2013
SMS LEVEL ADVERTISING FILLING OF POSTS
No. of vacancies per level advertised in 6 months of becoming vacant
No. of vacancies per level filled in 6 months of becoming vacant
No. of vacancies per level not filled in 6 months of becoming
vacant but in 12 months
Director-General/Head of Department 0 0 0
Salary Level 16, but not HOD 0 0 0
Salary Level 15 0 0 0
Salary Level 14 0 0 0
Salary Level 13 3 0 4 TOTAL 3 0 4
TABLE 3.4 - Signing of performance Agreements by SM S Members as at 30 September 2012
SMS LEVEL Total no. of funded SMS posts per level
Total no. of SMS Members per level
Total no. of signed performance agreements
per level
Signed performance agreements as % of total no.
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 1 1 100
Salary Level 14 11 9 9 100
Salary Level 13 40 33 33 100 TOTAL 55 44 44 100
SMS LEVEL Total no. of funded
SMS posts per level Total no. of SMS posts filled
per level % of SMS posts filled
per level Total number of SMS posts
vacant per level
Director-General/Head of Department 1 1 100 0
Salary Level 16, but not HOD 0 0 0 0
Salary Level 15 3 1 33.33 2
Salary Level 14 11 9 72.72 2
Salary Level 13 40 36 85.71 4 TOTAL 55 47 80 8
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 143 -
TABLE 4.1 - 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
Contract (Band D) 0 0 0 0 0 0 0
Skilled (Levels 3-5) 57 0 0 0 0 0 0
Highly skilled production (Levels 6-8) 99 5 5.1 3 60 0 0
Highly skilled supervision (Levels 9-12) 196 6 3.1 2 33.3 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 407 11 2.7 5 45.5 0 0
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 144 -
TABLE 4.2 - Profile of employees whose positions we re upgraded due to their posts being upgraded
Beneficiaries African Asian Coloured White Total
Female 1 1 0 1 3
Male 0 0 0 0 0
Total 1 1 0 1 3
Employees with a disability 0 0 0 0 0
TABLE 4.3 - 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
Number of employees in dept
Chief Registry Clerk 1 7 8 Grade Progression
1
Total 1
Percentage of total employment 0 0
TABLE 4.4 - 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 1 0 0 1
Male 0 0 0 0 0
Total 0 1 0 0 1
Employees with a disability 0 0 0 0 0
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 145 -
TABLE 5.1 - Annual Turnover Rates by Salary Band
Salary Band Employment at beginning of period (April
2012)
Appointments Terminations Turnover rate
Skilled (Levels 3-5), Permanent 54 10 2 3.7
Highly skilled production (Levels 6-8), Permanent 95 9 13 13.7
Highly skilled supervision (Levels 9-12), Permanent 192 13 13 6.8
Senior Management Service Band A, Permanent 39 2 1 2.6
Senior Management Service Band B, Permanent 11 0 1 9.1
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 0 0 0 0
Contract (Levels 3-5), Permanent 0 0 0 0
Contract (Levels 6-8), Permanent 0 0 0 0
Contract (Levels 9-12), Permanent 1 0 0 0
Contract (Band A), Permanent 0 0 0 0
Contract (Band D), Permanent 1 0 0 0
TOTAL 397 34 30 7.6
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 146 -
TABLE 5.2 - Annual turnover rates by critical occup ation
Occupation Employment at beginning of
period (April 2012)
Appointments Terminations Turnover rate
Administrative related, Permanent 45 2 4 8.9
Bus and heavy vehicle drivers, Permanent 6 2 0 0
Client inform clerks(switch recept, inform clerks), Permanent 2 0 0 0
Communication and information related, Permanent 4 0 0 0
Economist, Permanent 1 0 0 0
Finance and economics related, Permanent 38 5 3 7.9
Financial and related professionals, Permanent 51 4 3 5.9
Financial clerks and credit controllers, Permanent 16 2 1 6.3
Food services aids and waiters, Permanent 0 0 0 0
General Legal Administration andrel professionals, Permanent 2 0 1 50
Head of department/chief executive officer, Permanent 1 0 0 0
Human resources andorganisat develop and relate prof, Permanent 21 0 0 0
Human resources clerks, Permanent 22 2 3 13.6
Human resources related, Permanent 4 0 0 0
Information technology related, Permanent 2 0 0 0
Library mail and related clerks, Permanent 5 0 0 0
Material-recording and transport clerks, Permanent 4 0 0 0
Messengers porters and deliverers, Permanent 3 0 0 0
Other administratand related clerks and organisers, Permanent 29 8 6 20.7
Other administrative policy and related officers, Permanent 51 4 4 7.8
Other information technology personnel., Permanent 9 0 1 11.1
Other occupations, Permanent 0 0 0 0
Risk management and security services, Permanent 0 0 0 0
Secretaries and other keyboard operating clerks, Permanent 27 3 3 11.1
Senior managers, Permanent 54 2 1 1.9
TOTAL 397 34 30 7.6
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 147 -
TABLE 5.3 - Reasons why staff are leaving the depar tment
Termination type Number Percentage of total
resignations
Percentage of total
employment
Total Total employment
Resignation, permanent 12 12.1 3.5 99 345
Expiry of contract, permanent 0 0 0 99 345
Transfers out of the Department 15 15.2 4.3 99 345
Dismissal-misconduct, Permanent 1 1 0.3 99 345
Retirement, Permanent 2 2 0.6 99 345
TOTAL 30 30.3 8.7 99 345
Resignations as % of Employment
25.6
TABLE 5.4 - Granting of employee initiated severanc e 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
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 148 -
TABLE 5.5 - Promotions by critical occupation
Occupation Employment at beginning
of period (April 2012)
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 45 0 0 23 51.1
Bus and heavy vehicle drivers 6 0 0 0 0
Client inform clerks(switch recept inform clerks) 2 0 0 1 50
Communication and information related 4 0 0 2 50
Economist, Permanent 1 0 0
Finance and economics related 38 2 5.3 7 18.4
Financial and related professionals 51 0 0 29 56.9
Financial clerks and credit controllers 16 2 12.5 13 81.3
General Legal Administration &rel professionals, Permanent 2 0 0
Head of department/chief executive officer 1 0 0 1 100
Human resources &organisat develop & relate prof 21 0 0 13 61.9
Human resources clerks 22 0 0 12 54.5
Human resources related 4 0 0 2 50
Information technology related 2 0 0 1 50
Library mail and related clerks 5 0 0 5 100
Material-recording and transport clerks 4 0 0 3 75
Messengers porters and deliverers 3 0 0 3 100
Other administrat& related clerks and organisers 29 0 0 9 31
Other administrative policy and related officers 51 0 0 19 37.3
Other information technology personnel. 9 0 0 8 88.9
Other occupations 0 0 0 0 0
Risk management and security services 0 0 0 1 0
Secretaries & other keyboard operating clerks 27 0 0 17 63
Senior managers 54 0 0 19 35.2
TOTAL 397 4 1 188 47.4
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 149 -
TABLE 5.6 - Promotions by salary band
Salary band Employment at beginning of
period (April 2012)
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 54 0 0 15 27.8
Highly skilled production (Levels 6-8), Permanent 95 1 1.1 59 62.1
Highly skilled supervision (Levels 9-12), Permanent 192 3 1.6 92 47.9
Senior management (Levels 13-16), Permanent 54 0 0 21 38.9
Contract (Levels 3-5), Permanent 0 0 0 0 0
Contract (Levels 6-8), Permanent 0 0 0 0 0
Contract (Levels 9-12), Permanent 1 0 0 1 100
Contract (Levels 13-16), Permanent 1 0 0 0 0 TOTAL 397 4 1 188 47.4
TABLE 6.1 - Total number of Employees (incl. Employ ees with disabilities) per Occupational Category (S ASCO)
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, managers, Perm 15 2 6 23 2 9 0 7 16 2 43
Professionals, Permanent 46 0 5 51 5 38 1 3 42 9 107
Technicians, associate professionals, Perm 39 0 3 42 0 37 0 5 42 2 86
Clerks, Permanent 31 1 0 32 0 45 1 9 55 12 99
Service and sales workers, Permanent 1 0 0 1 0 0 0 0 0 0 1
Plant & machine operators, assemblers, Perm 4 0 0 4 1 1 0 0 1 0 6
Elementary occupations, Permanent 3 0 0 3 0 0 0 0 0 0 3 TOTAL 139 3 14 156 8 130 2 24 156 25 345
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 1 0 1 2 0 0 0 0 0 1 3
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 150 -
TABLE 6.2 - Total number of employees (incl. employ ees 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 16 2 5 23 2 8 0 7 15 3 43
Professionally qualified and experienced specialists and mid-management, Permanent
58 0 6 64 5 39 0 7 46 6 121
Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent
48 0 1 49 1 60 2 8 70 16 136
Semi-skilled and discretionary decision making, Perm 16 1 0 17 0 22 0 2 24 0 41
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 139 3 14 156 8 130 2 24 156 25 345
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 151 -
TABLE 6.3 - 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
Senior Management, Permanent 0 0 0 0 0 0 0 1 1 1 2
Professionally qualified and experienced specialists and mid-management, Permanent
6 0 0 5 0 3 0 0 2 0 9
Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent
5 0 0 3 0 9 0 0 8 1 15
Semi-skilled and discretionary decision making, Perm 2 0 0 2 0 6 0 0 4 0 8
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 13 0 0 10 0 18 0 1 15 2 34
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
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 152 -
TABLE 6.4 - 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, Permanent 0 0 0 0 0 0 0 0 0 0 0
Senior Management, Permanent 0 0 0 0 0 0 0 0 0 0 0
Professionally qualified and experienced specialists and mid-management, Permanent
1 0 0 1 0 1 0 0 1 0 2
Skilled technical and academically qualified workers, junior management, supervisors, Perm
1 0 0 1 0 1 0 0 1 0 2
Semi-skilled, discretionary decision making, Perm 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 2 0 0 2 0 2 0 0 2 0 4
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 1 0 1 2 1 0 0 0 0 1 4
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 153 -
TABLE 6.5 - 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
Senior Management, Permanent 1 0 0 0 0 0 0 0 0 0 1
Professionally qualified and experienced specialists and mid-management, Permanent
3 0 1 2 1 5 0 1 4 0 11
Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent
3 0 0 2 1 12 0 0 6 0 16
Semi-skilled and discretionary decision making, Permanent
0 0 0 0 0 2 0 0 0 0 2
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 1 4 2 19 0 1 10 0 30
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 1 0 0 0 0 0 1
TABLE 6.6 - 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 SCM procurement 1 1 1
Drunk on duty, unauthorised absence from duty 2 2 2
Colluding with suppliers in executing procurement functions within CFO
1 1 1
TOTAL 0 0 0 0 0 1 0 0 1 0 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 154 -
TABLE 6.7 - 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 3 1 1 5 0 2 0 2 0 0 9
Professionals 93 1 3 97 8 94 0 12 106 11 222
Technicians and Associate Professionals 17 1 2 20 0 27 0 1 28 1 49
Clerks 136 4 8 148 5 177 2 28 207 20 380
Service and Sales Workers 2 0 0 2 0 0 0 0 0 0 2
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 0 0 0 0 0 1 0 0 1 0 1
Elementary Occupations 1 0 0 1 0 0 0 0 0 0 1
TOTAL 252 7 14 273 13 301 2 43 342 32 664
Employees with disabilities 0 0 0 0 0 0 0 0 0 0 0
TABLE 7.1 - 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 23 130 13.1 271 11 803
African, Male 19 139 10.5 445 24 745
Asian, Female 9 24 34.6 93 10 377
Asian, Male 3 14 16.7 149 49 826
Coloured, Female 0 2 0 0 0
Coloured, Male 0 3 0 0 0
Total Blacks, Female 32 156 15.6 365 11 402
Total Blacks, Male 22 156 10.9 595 28 328
White, Female 15 25 60 306 20 420
White, Male 2 8 25 45 22 531
Employees with a disability 0 3 0 0 0 TOTAL 71 345 16.1 1 311 18 730
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 155 -
TABLE 7.2 - 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) 9 55 16.4 44 4 889
Highly skilled production (Levels 6-8) 24 78 30.8 222 9 250
Highly skilled supervision (Levels 9-12) 33 165 20 724 21 939
Contract (Levels 1-2) 0 52 0 0 0
Contract (Levels 3-5) 0 71 0 0 0
Contract (Levels 6-8) 0 5 0 0 0
Contract (Levels 9-12) 0 13 0 0 0
Periodical Remuneration 0 36 0 0 0
Abnormal Appointment 0 0 0 0 0
TOTAL 66 475 13.9 990 15000
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 156 -
TABLE 7.3 - Performance rewards by critical occupat ion
Critical occupations Number of beneficiaries
Total employment
% of total employment
Cost (R'000) Average cost per beneficiary (R)
Administrative related 6 38 15.8 149 24 833
Bus and heavy vehicle drivers 2 6 33.3 15 7 500
Client inform clerks(switch recept inform clerks) 0 1 0 0 0
Communication and information related 1 4 25 36 36 000
Finance and economics related 7 26 26.9 190 27 143
Financial and related professionals 12 48 25 282 23 500
Financial clerks and credit controllers 6 17 35.3 55 9 167
Head of department/chief executive officer 1 1 100 128 128 000
Human resources andorganisat develop and relate prof 4 17 23.5 50 12 500
Human resources clerks 4 20 20 60 15 000
Human resources related 0 3 0 0 0
Information technology related 1 2 50 21 21 000
Library mail and related clerks 4 7 57.1 24 6 000
Material-recording and transport clerks 0 4 0 0 0
Messengers porters and deliverers 3 3 100 13 4 333
Other administratand related clerks and organisers 5 23 21.7 45 9 000
Other administrative policy and related officers 1 48 2.1 11 11 000
Other information technology personnel. 2 7 28.6 17 8 500
Other occupations 0 0 0 0 0
Risk management and security services 0 1 0 0 0
Secretaries and other keyboard operating clerks 8 27 29.6 65 8 125
Senior managers 4 42 9.5 149 37 250
TOTAL 71 345 20.6 1310 18451
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 157 -
TABLE 7.4 - Performance related rewards (cash bonus ) by salary band for Senior Management Service
SMS band Number of beneficiaries
Total employment
% of total employment
Cost (R'000)
Average cost per beneficiary (R)
% of SMS wage bill
Personnel cost SMS (R'000)
Band A 2 36 5.6 84 42 000 0.3 29 490
Band B 2 9 22.2 0 0 0 0
Band C 0 1 0 108 0 3.8 2 866
Band D 1 1 100 128 128 000 1.9 6 594
TOTAL 5 47 10.6 320 64000 0.8 38950
TABLE 8.1 - Foreign workers by salary band
Salary band Employment at beginning
period
% of total
Employment at end of
period
% of total
Change in employment
% of Total
Total employment at beginning
of period
Total employment
at end of period
Total change in
employment
Highly skilled supervision (Levels 9-12) 1 25 0 0 -1 50 4 2 -2
Senior management (Levels 13-16) 1 25 1 50 0 0 4 2 -2
Contract (Levels 13-16) 0 0 0 0 0 0 4 2 -2
Abnormal Appointment 1 25 1 50 -1 50 4 2 -2
TOTAL 3 75 2 100 -2 100 4 2 -2
TABLE 8.2 - Foreign workers by major occupation
Major occupation Employment at beginning
Period
% of total Employment at end of
period
% of total Change in employment
% of total
Total employment at beginning
of period
Total employment
at end of period
Total change in
employment
Administrative office workers 1 25 0 0 -1 50 4 2 -2
Professionals and managers 1 25 1 50 -1 50 4 2 -2
TOTAL 2 50 1 50 -2 100 4 2 -2
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 158 -
TABLE 9.1 - Sick leave for Jan 2012 to Dec 2012
Salary band Total days
% days with medical
certification
No. of employees using sick
leave
% of Total employees using sick
leave
Average days per employee
Estimated cost (R'000)
Total no. of employees using sick
leave
Total no. of days with medical
certification
Skilled (Levels 3-5) 196 62.2 34 10.6 6 65 320 122
Highly skilled production (Levels 6-8) 642 77.1 79 24.7 8 417 320 495
Highly skilled supervision (Levels 9-12) 801 71.5 126 39.4 6 1 177 320 573
Senior management (Levels 13-16) 114 68.4 29 9.1 4 338 320 78
Contract (Levels 1-2) 51 39.2 14 4.4 4 9 320 20
Contract (Levels 3-5) 140.5 54.1 35 10.9 4 54 320 76
Contract (Levels 6-8) 1 0 1 0.3 1 1 320 0
Contract (Levels 9-12) 1 100 1 0.3 1 1 320 1
Contract (Levels 13-16) 1 0 1 0.3 1 3 320 0
TOTAL 1947.5 70.1 320 100 6 2065 320 1365
TABLE 9.2 - Disability leave (Temporary and Permane nt) for Jan 2012 to Dec 2012
Salary band Total days
% days with medical
certification
No. of employees
using disability
leave
% of Total employees
using disability
leave
Average days per employee
Estimated cost (R'000)
Total no. of days with medical
certification
Total no. of employees
using disability
leave
Skilled (Levels 3-5) 26 100 3 18.8 9 11 26 16
Highly skilled production (Levels 6-8) 36 100 5 31.3 7 24 36 16
Highly skilled supervision (Levels 9-12) 80 100 7 43.8 11 102 80 16
Senior management (Levels 13-16) 4 100 1 6.3 4 11 4 16
TOTAL 146 100 16 100 9 148 146 16
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 159 -
TABLE 9.3 - Annual leave for Jan 2012 to Dec 2012
Salary band Total days taken
Average days per employee
No. of employees who took leave
Skilled (Levels 3-5) 643 15 42
Highly skilled production (Levels 6-8) 1870 19 100
Highly skilled supervision (Levels 9-12) 3165 19 171
Senior management (Levels 13-16) 879 19 46
Contract (Levels 1-2) 289 7 42
Contract (Levels 3-5) 646.92 9 73
Contract (Levels 6-8) 20 5 4
Contract (Levels 9-12) 20 3 6
Contract (Levels 13-16) 59 10 6
TOTAL 7591.92 15 490
TABLE 9.4 - Capped leave for Jan 2012 to Dec 2012
Salary band Total days of capped leave
taken
Average no. of days taken per employee
Average capped leave per
employee as at 31 Dec 2012
No. of Employees who
took Capped leave
Total no. of capped leave available at 31
Dec 2012
No. of Employees as at 31 Dec 2012
Skilled (Levels 3-5) 25 13 52 2 311 6
TOTAL 25 13 52 2 311 6
TABLE 9.5 - Leave payouts
Reason Total (R'000)
No. of employees
Average payment per employee (R)
Capped leave payouts on termination of service for 2012/13 83 7 11857
Current leave payout on termination of service for 2012/13 0 10 0
TOTAL 83 17 4882
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 160 -
TABLE 10.1 - Steps taken to reduce the risk of occu pational exposure
Units/categories of employees identified to be at h igh risk of contracting HIV & related diseases (if any)
Key steps taken to reduce risk
xxx xxx
xxx xxx
TABLE 10.2 - Details of health promotion and HIV/AI DS programmes [tick Yes/No and provide required inf ormation]
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.KogieChetty: 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 There are two employees responsible for promoting EH&W, namely: Deputy Manager and a Practitioner
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 Counselling, monthly onsite Chronic disease Management, Healthy life style 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 ZamasishiSibiya- EH&W, ThamiMhlongo-Auxillary services, KelebogileLekate- Internal Audit, Samantha Strachan-Provincial Budget Analyst, MenziNdlovu- SCM, SethabileMthembu-Financial reporting
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 Wellness Management, SHERQ & HIV, AIDS & TB management and Health and Productivity management policies
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 161 -
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 PILIR 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
7. Does the department encourage its employees to undergo Voluntary Counselling and Testing? If so, list the results.
X Number of employees that participated in HCT increased from 128 to 175 compared to the previous year, only 1 employee found HIV positive.
8. Has the department developed measures/indicators to monitor and 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.
TABLE 11.1 - Collective agreements
Subject matter Date
nil
TABLE 11.2 - Misconduct and discipline hearings fin alised Outcomes of disciplinary hearings Number % of total Total
Dismissal (employee resigned whilst appealing outcome) 1 33.4 1
Final written warning 2 66.6 2
TOTAL 2 100 3
TABLE 11.3 - Types of misconduct addressed and disc iplinary hearings
Type of misconduct Number % of total Total
Colluding with suppliers in executing procurement functions within CFO 1 33.3 3
Unacceptable behaviour/ drunk on duty 1 33.3 3
Tampering with Supply Chain management procurement 1 33.3 3
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 162 -
TOTAL 3 100 3
TABLE 11.4 - Grievances Lodged
Number of grievances addressed Number Percentage of total
Total
TOTAL 3 100 3
TABLE 11.5 - Disputes Lodged
Number of disputes addressed Number % of total
Upheld 3 100
Dismissed 0 0
Total 3
TABLE 11.6 - Strike actions
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 11.7 - Precautionary suspensions
Precautionary suspensions _
Number of people suspended 1
Number of people whose suspension exceeded 30 days 1
Average number of days suspended 211
Cost (R'000) of suspensions R 62 477.97
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 163 -
TABLE 12.1 - Training needs identified
Occupational categories Gender Employment Learnersh ips Skills programmes
and other short courses
Other forms of training
Total
Legislators, senior officials and managers Female 18 0 33 1 34
Male 25 0 64 4 68
Professionals Female 51 0 225 8 233
Male 56 0 209 13 222
Technicians and associate professionals Female 44 0 125 10 135
Male 42 0 115 8 123
Clerks Female 67 0 174 16 190
Male 32 0 55 6 61
Service and sales workers Female 0 0 0 0 0
Male 1 0 5 1 6
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 5 1 6
Elementary occupations Female 0 0 0 0 0
Male 3 0 4 0 4
Gender sub totals Female 181 0 557 35 592
Male 164 0 457 33 490
Total 345 0 1014 68 1082
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 164 -
TABLE 12.2 - Training provided
Occupational categories Gender Employment Learnersh ips Skills programmes
and other short courses
Other forms of training
Total
Legislators, senior officials and managers Female 18 0 4 0 4
Male 25 0 5 0 5
Professionals Female 51 0 117 0 117
Male 56 0 105 0 105
Technicians and associate professionals Female 44 0 29 0 29
Male 42 0 20 0 20
Clerks Female 67 0 227 0 227
Male 32 0 153 0 153
Service and sales workers Female 0 0 0 0 0
Male 1 0 2 0 2
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 1 0 1
Plant and machine operators and assemblers Female 1 0 1 0 1
Male 5 0 0 0 0
Elementary occupations Female 0 0 0 0 0
Male 3 0 0 0 0
Gender sub totals Female 181 0 378 0 378
Male 164 0 286 0 286
Total 345 0 664 0 664
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 165 -
TABLE 13.1 - Injury on duty
Nature of injury on duty Number % of total
Required basic medical attention only 0 0
Temporary total disablement 0 0
Permanent disablement 0 0
Fatal 0 0
Total 0
TABLE 14.1 - Report on consultant appointments usin g appropriated funds
Project title Total number of consultants that
worked on project
Duration: Work days Contract value in Rand
Forensic Investigation: Department of KZN Transport Stanger Cost Centre Phase3 1 166 3 003 330.00
Professional Forensic Investigation Services 1 Investigation in progress, started on 20/06/2013
1 926 030.00
Final Investigation on alleged fraud& corruption in SCM (Ukhahlamba District) 1 Investigation is in progress 1 880 274.00
Investigation into allegedregular/irregular cancellation of bid ZNT M00526W FR18/2011
1 186 89 490.00
Forensic investigation into alleged irregularities that occurred during bidding processwithin Department of PublicWorks, Education, and Human Settlement: FR22/2011
1 103 112 860.00
Internal auditors - resource to conduct fieldwork for education headcount project. 1 6 27 360.00
Internal auditors - resource to conduct fieldwork for education headcount project. 1 9 27 360.00
Internal auditors - resource to conduct fieldwork for education headcount project. 1 10 27 360.00
Internal auditors - resource to conduct fieldwork for education headcount project. 1 10 27 360.00
Internal auditors - resource to conduct fieldwork for education headcount project. 1 10 27 360.00
Internal auditors - resource to conduct fieldwork for education headcount project. 1 30 82 080.00
Internal auditors - resource to conduct fieldwork for education headcount project. 1 20 54 720.00
Internal auditors - resource to conduct fieldwork for education headcount project. 1 10 27 360.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 166 -
Internal auditors - resource to conduct fieldwork for education headcount project. 1 10 27 360.00
Forensic investigation on SCM processes on Imbabazane Local Municipality 1 166 647 751.00
forensic investigation 1 176 445 854.00
forensic investigation on Makari Agricultural and Multi-purpose co-operatives 1 166 391 191.00
Forensic investigation- Ikusasalentsha Co-operatives FR 20/2012 1 166 199 329.00
Application control review on MEDSAS 1 20 187 017.00
Application control review on Biometrics 1 30 229 824.00
Internal audit resources analysis 1 52 668.00
Execution for Human Resources Management Audit For Department of Education 1 57 155 952.00
Provision of support to Internal Audit Staff 1 171 000.00
AG Follow up review extension of order no: B0546399 1 48 450.00
Performance of risk based audit at the Richards Bay Industrial Development Zone 1 130 1 938 804.00
Performance of audit on primary health care (PHC) at KZN Department of Health (amount includes VAT and disbursement)
1 539.5 3 934 721.00
Review of department health Risk profile and Internal Audit plan 1 69 440.00
Head count for Department of Education. Phase 4 1 186 1 187 788.80
Senior consultants to audit human resource management 1 91 200.00
Forensic investigation for KZN Provincial Treasury 1 5 5 130.00
Senior Consultants for application control review at various depts and public entities 1 10 68 000.00
Senior Consultants for application control review at various depts and public entities 1 20 155 040.00
Senior Consultants for application control review at various depts and public entities 1 50 340 000.00
Application Control Review 1 20 155 040.00
Application Control Review 1 20 155 040.00
Application Control Review 1 50 387 600.00
Forensic Services for KZN Provincial Treasury 1 5 5 130.00
Fleet Management Audit @ Dept of Education 1 15 82 080.00
Forensic investigation: Alleged procurement fraud at KZN Department of Transport CAS 21/12/2011 1 1 685 832.00
Audit on Performance Information- Department of Education 1 20 200 640.00
Head count for Department of Education. Phase 5 1 275 1 372 153.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 167 -
Audit Human Resource Management @ KZN Provincial Treasury 1 15 68 400.00
Audit Human Resource Management @ KZN Sharks Board 1 15 161 880.00
Audit Human Resource Management @ KZN Dept of Economic Devt & Tourism 1 15 68 400.00
Audit on Performance Information at RHH and RHT 1 30 days 109 440.00
Forensic Investigation Education 1 02 days 23 514.00
Audit on performance information at Royal Household Trust 1 28 109 440.00
Audit for Transport Department 1 15 82 080.00
Resource to conduct an Audit HRM @ KZN Provincial Treasury 1 20 155 040.00
Audit on performance information at Department of Health 1 156 180.00
Testify at DC Hearing of Department of Transport 1 Investigation in progress 159 600.00
Audit on SCM of Department of Social Development 1 20 200 640.00
Audit on SCM of Department of Human Settlement 1 20 145 920.00
IT application control reviews at various departments and public entities 1 20 155 040.00
IT application control reviews at various departments and public entities 1 30 232 560.00
IT application control reviews at various departments and public entities 1 10 77 520.00
IT application control reviews at various departments and public entities 1 60 465 120.00
IT application control reviews at various departments and public entities 1 30 232 560.00
Forensic Investigation to the Department of Transport 1 202 3 305 355.00
Forensic review at the KZN Department of Economic Development and Tourism- Allegedirregularities relating to Local Economic Development project
1 Investigation started in December still in progress
1 354 570.00
Forensic Investigation: The Ark of Compassion 1 166 211 071.00
Audit on subsistence and travel allowance- COGTA 1 30 109 440.00
IT audit for general controls ito the financial and performance management systems 1 20 150 708.00
IT application control reviews at various departments and public entities 1 20 180 405.00
Audit on performance information- Human Settlement 1 30 150 480.00
Audit at one home one garden at Dept of Agriculture and Environmental Affairs 1 372.5 2 736 712.50
IT application control reviews and security audit of Works Info Man. System (WIMS) 1 20 186 219.00
Audit on HRM for the Dept of Economic Development and Tourism Project 167/2012 1 20 145 920.00
Audit on performance information at Dept of Agriculture and Environmental Affairs 1 15 82 080.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 168 -
Forensic accounting services is required to attend a DC enquiry 1 1 11 596.00
Forensic investigation: Dept of Community Safety for VSCPP 1 166 596 676.00
IT application control audit of the professional real estate 1 20 160 911.00
Resources to conduct audit on transfer payments @ Dept of Sport and Recreation 1 42 140 448.00
Assessment of IT Systems at the Department of Health 1 40 350 000.00
Audit on fleet Management Department of Sport & Recreation 1 30 100 320.00
MSP-Implementation of Cash Flow Management at uPongolo Municipality 1 57 869 248.00
MSP-Implementation of Cash Flow Management at Nongoma Municipality 1 35 318 835.00
MSP-Implementation of Cash Flow Management at Nongoma Municipality 1 57 1 246 095.24
MSP-Implementation of Cash Flow Management at uPongolo Municipality 1 44 287 513.00
Resource deployed to Ilembe Municipality 1 33 298 452.00
Resource deployed to Ilembe Municipality 1 37 175 560.00
Resource deployed to Ilembe Municipality 1 31 175 560.00
Phase two MSP-Internal Control Enhancement 1 47 1 143 428.00
Phase two MSP-Internal Control Enhancement 1 28 371 780.00
Phase two MSP-Internal Control Enhancement at Endumeni Municipality 1 43 1 198 076.00
Phase two MSP-Internal Control Enhancement at Ulundi Municipality 1 40 1 116 923.00
Phase two MSP-Internal Control Enhancement at Ezinqoleni Municipality 1 12 321 704.00
Phase two MSP-Internal Control Enhancement at Ezinqoleni Municipality 1 21 586 826.00
Resource @ Umvoti Municipality 1 23 272 870.00
Municipal Support Program-Secondment of resource to Mtubatuba Municipality 1 43 230 736.00
Municipal Support Program-Secondment of resource to Mtubatuba Municipality 1 40 392 251.20
Municipal Support Program-Secondment of resource to Mtubatuba Municipality 1 43 392 251.20
Amendment to budget-Cash flow management at Umtshezi 1 14 84 132.00
MSP- uMvoti Municipality 1 40 201 737.50
MSP- Mthonjaneni 1 31 332 560.80
MSP-Mtubatuba Municipality 1 24 187 598.40
MSP-Mtubatuba Municipality 1 22 110 352.00
MSP-Mtubatuba Municipality 1 22 187 598.40
MSP-KZN Provincial Treasury Municipal Finance Unit 1 119 333 792.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 169 -
MSP-KZN Provincial Treasury Municipal Finance Unit 1 106 667 584.00
MSP-KZN Provincial Treasury Municipal Finance Unit 1 106 333 792.00
MSP-KZN Provincial Treasury Municipal Finance Unit 1 99 333 792.00
MSP-KZN Provincial Treasury Municipal Finance Unit 1 108 333 792.00
MSP-KZN Provincial Treasury Municipal Finance Unit 1 105 333 792.00
MSP-uThukela District Municipality 1 3 593 462.00
MSP-Secondment of resource to KZN Provincial Treasury 1 62 205 200.00
MSP-Secondment of resource to KZN Provincial Treasury 1 22 205 200.00
MSP-ITGC 5 31 501 600.00
MSP-ITGC 5 27 501 600.00
MSP-ITGC 4 15 501 600.00
MSP- Cash Flow Management 5 27 406 296.00
MSP-Secondment of resource to KZN Provincial Treasury 1 58 164 160.00
MSP-Secondment of resource to KZN Provincial Treasury 1 64 164 160.00
MSP-Secondment of resource to KZN Provincial Treasury 1 56 164 160.00
MSP-Secondment of resource to KZN Provincial Treasury 1 57 164 160.00
MSP-Secondment of resource to KZN Provincial Treasury 1 59 164 160.00
MSP-Secondment of resource to KZN Provincial Treasury 1 59 164 160.00
MSP- secondment of resources at KZN Provincial Treasury 1 57 164 160.00
MSP- secondment of resources at KZN Provincial Treasury 1 42 134 064.00
MSP- Umhlabuyalingana Municipality 1 289 925.00
MSP-Secondment of resource to Mtubatuba Municipality 1 30 907 394.40
Review of AFS and Update Course 1 221 600.00
Review of AFS and Update course- Contract extension 1 55 046.00
Assistance with the Department of Health Movable Assets Register 1 200 1 225 600.00
Assistance with the Department of Health Movable Assets Register 1 200 708 400.00
Assistance with the Department of Health Movable Assets Register 1 200 1 094 400.00
Assistance with the Department of Health Movable Assets Register 1 200 2 350 000.00
Assistance with the Department of Health Movable Assets Register 1 200 708 400.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 170 -
Assistance with the Department of Health Movable Assets Register 1 300 6 420 720.00
Assistance with the Department of Health Movable Assets Register 1 200 3 569 400.00
Conditional grant project 1 22.5 211 200.00
Conditional grant project 1 22.5 211 200.00
Conditional grant project 1 22.5 331 056.00
Irregular Expenditure Project 1 103.75 344 000.00
Irregular Expenditure Project 1 103.75 993 510.00
Irregular Expenditure Project 1 100 344 000.00
Irregular Expenditure Project 1 200 1 073 600.00
Irregular Expenditure Project 1 100 729 600.00
Public Works for Immovable Assets 1 175 1 089 270.00
Resource for the departments of Education 1 280 1 299 144.00
Resource for the departments of Education 1 140 702 240.00
Resource for the departments of Education 1 70 245 784.00
Deployment: Department of Education and COGTA 3 60 977 152.00
Improvement of Municipal service Delivery and improved planning 5 60 2 591 840.00
Improvement of Municipal service Delivery and improved planning 1 60 205 600.00
Improvement of Municipal service Delivery and improved planning 1 20 576 000.00
Support for the department of Human Settlement 1 90 1 776 000.00
Support for the department of Human Settlement 1 90 288 000.00
Support for the department of Human Settlement 1 90 1 776 000.00
Support for the department of Human Settlement 1 90 1 776 000.00
Crack team- Municipal Finance Support 1 90 1 672 200.00
Crack team- Municipal Finance Support 1 120 957 600.00
Crack team- Municipal Finance Support 1 150 3 049 790.00
Crack team- Municipal Finance Support 1 180 244 800.00
Crack team- Nongoma Municipality 1 90 2 880 000.00
Crack team- COGTA 1 90 2 160 000.00
Crack team- PPP Unit Assistant 1 60 432 000.00
Crack team- Department of Agriculture 1 44 512 000.00
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 171 -
Ndumo Regeneration project 1 90 528 000.00
Ndumo Regeneration project 1 90 1 056 000.00
Crack team - Public works final accounts 1 60 288 000.00
Contract Management pilot project 1 365 1 835 332.45
Contract Management pilot project 1 365 1 698 323.55
Contract Management pilot project 1 365 1 822 877.10
Contract Management pilot project 1 365 2 699 440.66
Contract Management pilot project 1 365 1 723 234.26
MSP for support in SCM in Uthukela District Municipality 1 547 728.00
Total number of projects
Total individuals consultants
Total duration: work days
Total contract value in Rand
166 188 R 113 515 405.46
TABLE 14.2 - Analysis of consultant appointments us ing appropriated funds, i.t.o. HDIs
Project title Percentage ownership by HDI groups
Percentage management
by HDI groups
No. of consultants from HDI groups that work on project
Forensic Investigation 100.00% 100.00% 1
ProfessionalForensic Investigation Services 72.50% 72.50% 1
Final Investigation on alleged fraud& corruption in SCM (Ukhahlamba District) 100.00% 100.00% 1
Investigation into allegedregular/irregular cancellation of bid ZNT M00526W 100.00% 100.00% 1
Forensic investigation into alleged irregularities that occurred during the bidding process within the department of public works, education, and Human settlement: FR22/2011 100.00% 100.00% 1
Internal auditors - resource to conduct fieldwork for education headcount project. 100.00% 100.00% 1
Internal auditors - resource to conduct fieldwork for education headcount project. 30.75% 30.75% 1
Internal auditors - resource to conduct fieldwork for education headcount project. 100.00% 100.00% 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 172 -
Internal auditors - resource to conduct fieldwork for education headcount project. 100.00% 100.00% 1
Internal auditors - resource to conduct fieldwork for education headcount project. 25.10% 25.10% 1
Internal auditors - resource to conduct fieldwork for education headcount project. 100.00% 100.00% 1
Internal auditors - resource to conduct fieldwork for education headcount project. 76.48% 76.48% 1
Internal auditors - resource to conduct fieldwork for education headcount project. 100.00% 100.00% 1
Internal auditors - resource to conduct fieldwork for education headcount project. 26.75% 26.75% 1
Forensic investigation on SCM processes on Imbabazane Local Municipality 100.00% 100.00% 1
Forensic investigation 100.00% 100.00% 1
Forensic investigation on Makari Agricultural and Multi-purpose co-operatives 25.10% 25.10% 1
Forensic investigation- Ikusasalentsha Co-operatives FR 20/2012 23.00% 23.00% 1
Application control review on MEDSAS 26.75% 26.75% 1
Application control review on Biometrics 72.50% 72.50% 1
Internal audit resources analysis 25.10% 25.10% 1
Execution for Human Resources Management Audit For Department of Education 100.00% 100.00% 1
Provision of support to Internal Audit Staff 100.00% 100.00% 1
AG Follow up review extension of order no: B0546399 100.00% 100.00% 1
Performance of risk based audit at the Richards Bay Industrial Development Zone (RBIDZ). 100.00% 100.00% 1
Performance of audit on primary health care (PHC) at Dept. of Health (incl. VAT and disbursement) 25.10% 25.10% 1
Review of department health Risk profile and Internal Audit plan 25.10% 25.10% 1
Head count for Department of Education. Phase 4 23.00% 23.00% 1
Senior consultants to audit human resource management 100.00% 100.00% 1
Forensic investigation for KZN Provincial Treasury 25.10% 25.10% 1
Senior Consultants for application control review at various departments and public entities 100.00% 100.00% 1
Senior Consultants for application control review at various departments and public entities 26.75% 26.75% 1
Senior Consultants for application control review at various departments and public entities 25.10% 25.10% 1
Application Control Review 100.00% 100.00% 1
Application Control Review 26.75% 26.75% 1
Application Control Review 25.10% 25.10% 1
Forensic Services for KZN Provincial Treasury 25.10% 25.10% 1
Fleet Management Audit @ Dept of Education 100.00% 100.00% 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 173 -
Forensic investigation: Alleged procurement fraud at Department of Transport CAS 21/12/2011 100.00% 100.00% 1
Audit on Performance Information- Department of Education 100.00% 100.00% 1
Head count for Department of Education. Phase 5 23.00% 23.00% 1
Audit Human Resource Management @ KZN Provincial Treasury 100.00% 100.00% 1
Audit Human Resource Management @ KZN Sharks Board 100.00% 100.00% 1
Audit Human Resource Management @ KZN Dept of Economic Development and Tourism 100.00% 100.00% 1
Audit on Performance Information at RHH and RHT 100.00% 100.00% 1
Forensic Investigation 1
Audit on performance information at Royal Household Trust 100.00% 100.00% 1
Audit for Transport Department 100.00% 100.00% 1
Resource to conduct an Audit HRM @ KZN Provincial Treasury 100.00% 100.00% 1
Audit on performance information at Department of Health 100.00% 100.00% 1
Testify at DC Hearing of Department of Transport 100.00% 100.00% 1
Audit on SCM of Department of Social Development 100.00% 100.00% 1
Audit on SCM of Department of Human Settlement 100.00% 100.00% 1
IT application control reviews at various departments and public entities 30.75% 30.75% 1
IT application control reviews at various departments and public entities 23.00% 23.00% 1
IT application control reviews at various departments and public entities 72.50% 72.50% 1
IT application control reviews at various departments and public entities 25.10% 25.10% 1
IT application control reviews at various departments and public entities 26.75% 26.75% 1
Forensic Investigation to the Department of Transport 26.75% 26.75% 1
Forensic review at Dept of Eco. Dev. and Tourism- Allegedirregularities relating to LED project 26.75% 26.75% 1
Forensic Investigation 100.00% 100.00% 1
Audit on subsistence and travel allowance- COGTA 26.75% 26.75% 1
IT audit for general controls surrounding the financial and performance management systems 23.00% 23.00% 1
IT application control reviews at various departments and public entities 26.75% 26.75% 1
Audit on performance information- Human Settlement 100.00% 100.00% 1
Audit at one home one garden at Department of Agriculture and environmental affairs 30.75% 30.75% 1
IT application control reviews and security audit of Works Info. Management System (WIMS) 23.00% 23.00% 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 174 -
Audit on HRM for the Department of Economic Development and Tourism Project 167/2012 100.00% 100.00% 1
Audit on performance information at Department of Agriculture and Environmental Affairs 100.00% 100.00% 1
Forensic accounting services is required to attend a DC enquiry 0.00% 0.00% 1
Forensic investigation: Dept of Community Safety and liaison for VSCPP 26.75% 26.75% 1
IT application control audit of the professional real estate 23.00% 23.00% 1
Resources needed to conduct an audit on transfer payments @ dept of sports and recreation 100.00% 100.00% 1
Assessment of IT Systems at the Department of Health 25.10% 25.10% 1
Audit on fleet Management Department of Sport & Recreation 23.00% 23.00% 1
MSP-Implementation of Cash Flow Management at uPongolo Municipality 25.10% 25.10% 1
MSP-Implementation of Cash Flow Management at Nongoma Municipality 72.50% 72.50% 1
MSP-Implementation of Cash Flow Management at Nongoma Municipality 25.10% 25.10% 1
MSP-Implementation of Cash Flow Management at uPongolo Municipality 72.50% 72.50% 1
Resource deployed to Ilembe Municipality 23.00% 23.00% 1
Resource deployed to Ilembe Municipality 100.00% 100.00% 1
Resource deployed to Ilembe Municipality 100.00% 100.00% 1
Phase two MSP-Internal Control Enhancement 30.75% 30.75% 1
Phase two MSP-Internal Control Enhancement 100.00% 100.00% 1
Phase two MSP-Internal Control Enhancement at Endumeni Municipality 23.00% 23.00% 1
Phase two MSP-Internal Control Enhancement at Ulundi Municipality 23.00% 23.00% 1
Phase two MSP-Internal Control Enhancement at Ezinqoleni Municipality 100.00% 100.00% 1
Phase two MSP-Internal Control Enhancement at Ezinqoleni Municipality 1
Resource @ Umvoti Municipality 100.00% 100.00% 1
Municipal Support Program-Secondment of resource to Mtubatuba Municipality 100.00% 100.00% 1
Municipal Support Program-Secondment of resource to Mtubatuba Municipality 100.00% 100.00% 1
Municipal Support Program-Secondment of resource to Mtubatuba Municipality 100.00% 100.00% 1
Amendment to budget-Cash flow management at Umtshezi 30.75% 30.75% 1
MSP- uMvoti Municipality 100.00% 100.00% 1
MSP- Mthonjaneni 100.00% 100.00% 1
MSP-Mtubatuba Municipality 100.00% 100.00% 1
MSP-Mtubatuba Municipality 100.00% 100.00% 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 175 -
MSP-Mtubatuba Municipality 100.00% 100.00% 1
MSP-KZN Provincial Treasury Municipal Finance Unit 100.00% 100.00% 1
MSP-KZN Provincial Treasury Municipal Finance Unit 100.00% 100.00% 1
MSP-KZN Provincial Treasury Municipal Finance Unit 100.00% 100.00% 1
MSP-KZN Provincial Treasury Municipal Finance Unit 26.75% 26.75% 1
MSP-KZN Provincial Treasury Municipal Finance Unit 100.00% 100.00% 1
MSP-KZN Provincial Treasury Municipal Finance Unit 100.00% 100.00% 1
MSP-uThukela District Municipality 30.75% 30.75% 1
MSP-Secondment of resource to KZN Provincial Treasury 25.10% 25.10% 1
MSP-Secondment of resource to KZN Provincial Treasury 100.00% 100.00% 1
MSP-ITGC 23.00% 23.00% 1
MSP-ITGC 30.75% 30.75% 1
MSP-ITGC 26.75% 26.75% 1
MSP- Cash Flow Management 100.00% 100.00% 1
MSP-Secondment of resource to KZN Provincial Treasury 26.75% 26.75% 1
MSP-Secondment of resource to KZN Provincial Treasury 100.00% 100.00% 1
MSP-Secondment of resource to KZN Provincial Treasury 25.10% 25.10% 1
MSP-Secondment of resource to KZN Provincial Treasury 100.00% 100.00% 1
MSP-Secondment of resource to KZN Provincial Treasury 100.00% 100.00% 1
MSP-Secondment of resource to KZN Provincial Treasury 100.00% 100.00% 1
MSP- secondment of resources at KZN Provincial Treasury 100.00% 100.00% 1
MSP- secondment of resources at KZN Provincial Treasury 100.00% 100.00% 1
MSP- Umhlabuyalingana Municipality 25.10% 25.10% 1
MSP-Secondment of resource to Mtubatuba Municipality 100.00% 100.00% 1
Review of AFS and Update Course 100.00% 100.00% 1
Review of AFS and Update course- Contract extension 100.00% 100.00% 1
Assistance with the Department of Health Movable Assets Register 0.00% 0.00% 1
Assistance with the Department of Health Movable Assets Register 23.00% 23.00% 1
Assistance with the Department of Health Movable Assets Register 100.00% 100.00% 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 176 -
Assistance with the Department of Health Movable Assets Register 26.75% 26.75% 1
Assistance with the Department of Health Movable Assets Register 100.00% 100.00% 1
Assistance with the Department of Health Movable Assets Register 100.00% 100.00% 1
Assistance with the Department of Health Movable Assets Register 100.00% 100.00% 1
Conditional grant project 100.00% 100.00% 1
Conditional grant project 30.75% 30.75% 1
Conditional grant project 100.00% 100.00% 1
Irregular Expenditure Project 100.00% 100.00% 1
Irregular Expenditure Project 100.00% 100.00% 1
Irregular Expenditure Project 100.00% 100.00% 1
Irregular Expenditure Project 100.00% 100.00% 1
Irregular Expenditure Project 23.00% 23.00% 1
Public Works for Immovable Assets 100.00% 100.00% 1
Resource for the Department of Education 23.00% 23.00% 1
Resource for the Department of Education 100.00% 100.00% 1
Resource for the Department of Education 0.00% 0.00% 1
Deployment: Department of Education and COGTA 3 consultants, only 1 is 100% HDI
3 consultants, only 1 is 100% HDI 1
Improvement of Municipal service Delivery and impro ved planning 5 consultants, only 2 are 100% HDI
5 consultants, only 2 are 100% HDI 2
Improvement of Municipal service Delivery and improved planning 0.00% 0.00% 1
Improvement of Municipal service Delivery and impro ved planning 100.00% 100.00% 1
Support for the department of Human Settlement 0.00% 0.00% 1
Support for the department of Human Settlement 31.30% 31.30% 1
Support for the department of Human Settlement 0.00% 0.00% 1
Support for the department of Human Settlement 100.00% 100.00% 1
Crack team- Municipal Finance Support 0.00% 0.00% 1
Crack team- Municipal Finance Support 100.00% 100.00% 1
Crack team- Municipal Finance Support 0.00% 0.00% 1
KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT
2012/13 AFS KZN Provincial Treasury - 177 -
Crack team- Municipal Finance Support 0.00% 0.00% 1
Crack team- Nongoma Municipality 100.00% 100.00% 1
Crack team- COGTA 100.00% 100.00% 1
Crack team- PPP Unit Assistant 0.00% 0.00% 1
Crack team- Department of Agriculture 31.30% 31.30% 1
Ndumo Regeneration project 100.00% 100.00% 1
Ndumo Regeneration project 100.00% 100.00% 1
Crack team Public works final accounts 100.00% 100.00% 1
Contract Management pilot project 26.75% 26.75% 1
Contract Management pilot project 100.00% 100.00% 1
Contract Management pilot project 23.00% 23.00% 1
Contract Management pilot project 100.00% 100.00% 1
Contract Management pilot project 100.00% 100.00% 1
MSP Program for support in SCM in Uthukela District Municipality 100.00% 100.00% 1
TABLE 14.3 - Report on consultant appointments usin g donor funds
Project title Total no. of consultants that
worked on the project
Duration: Work days Donor and contract value in Ran d
N/A
Total number of projects Total individual consultants
Total duration: Work days
Total contract value in Rand
N/A
TABLE 14.4 - Analysis of consultant appointments us ing donor funds, i.t.o. HDIs
Project title % ownership by HDI groups
% management by HDI groups
Number of consultants from HDI groups that work on the project
N/A