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Physical AddressQhasana BuildingIndependent AvenueBhishoEastern CapePrivate bag X0022Bhisho5608Republic of South Africa
Switchboard: 040 602 4000Customer Care: 0800 864 951Presidential Hotline: 0800 17737Email:info@dpw.ecape.gov.zawww.ecdpw.gov.za
ANNUAL REPORT2016 / 17
PR: 260/2017ISBN: 978-0-621-45746-9
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Vote 05ANNUAL REPORT
2016-2017
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
TABLE OF CONTENTS
1. PART A: GENERAL INFORMATION ...................................................................................................11.1 Department’s General Information ....................................................................................................21.2 List of abbreviations/acronyms .........................................................................................................31.3 Foreword by MEC of the Department ................................................................................................51.4 ReportoftheAccountingOfficer .......................................................................................................71.5 Statementofresponsibilityandconfirmationoftheaccuracyoftheannualreport ..................141.6 Strategic Overview ............................................................................................................................15 1.6.1 Vision ......................................................................................................................................15 1.6.2 Mission ....................................................................................................................................15 1.6.3 Values .....................................................................................................................................15 1.6.4 Legislative and Other Mandates .............................................................................................16 1.6.5 DRPW organisational structure ...............................................................................................17
1.7 Entities reporting to the MEC ...........................................................................................................18
2. PART B: PERFORMANCE INFORMATION .......................................................................................192.1 Auditor General’s Report: Predetermined Objectives ...................................................................202.2 Overview of departmental performance..........................................................................................20 2.2.1 Service delivery environment ..................................................................................................20 2.2.2 Service Delivery Improvement Plan ........................................................................................23 2.2.3. BathoPelearrangementswithbeneficiaries(ConsultationAccessetc.) ................................24 2.2.4. Service Delivery Information Tool: ...........................................................................................28 2.2.5. Complaintsmechanism ...........................................................................................................28 2.2.6. Organisational Environment ....................................................................................................29
2.3 Key Policy Developments and Legislative Changes .....................................................................312.4 Strategic Outcome-Oriented Goals .................................................................................................312.5 Performance Information by Programme .......................................................................................38 2.5.1. Programme1:Administration ..................................................................................................38 2.5.2. Programme 2: Public Works Infrastructure .............................................................................42 2.5.3. Programme 3: Transport Infrastructure ...................................................................................50 2.5.4. Programme 4: Expanded Public Works Programme ..............................................................56
2.6 Transfer Payments ............................................................................................................................60 2.6.1. TransferPayments(ExcludingPublicEntities) .......................................................................60 2.6.2. Transfer Payments to Public Entities ......................................................................................60 2.6.3. Conditionalgrantsandearmarkedfundsreceived(NB:Nonon-financialdatapergrant) ......60
2.7 Donor Funds ......................................................................................................................................622.8 Capital Investments ..........................................................................................................................62 2.8.1. CapitalInvestment,MaintenanceandAssetManagementPlan .............................................62
3. PART C: GOVERNANCE ...................................................................................................................753.1. Introduction .......................................................................................................................................763.2. Risk Management ..............................................................................................................................763.3. Fraud and Corruption .......................................................................................................................77
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
3.4. MinimisingConflictofInterest(EthicsManagementprogramme) ...............................................783.5. Code of Conduct ...............................................................................................................................793.6. Health and Environmental Issues ....................................................................................................793.7. Portfolio Committees ........................................................................................................................793.8. SCOPA Resolutions ..........................................................................................................................803.9. Priormodificationstoauditreports ................................................................................................833.10. Internal Control Unit ..........................................................................................................................843.11. Internal Audit and Audit Committee ................................................................................................853.12. Report of the Audit Committee ........................................................................................................88
4. PART D: HUMAN RESOURCE MANAGEMENT ...............................................................................954.1 Introduction .......................................................................................................................................96 Human Resource Oversight Statistics.................................................................................................99
4.2 Personnel Related Expenditure .......................................................................................................994.3 Employment and vacancies ...........................................................................................................1024.4 Filling of SMS Posts ........................................................................................................................1064.5 Job evaluation .................................................................................................................................1084.6 Employment changes ..................................................................................................................... 1104.7 Employment Equity ......................................................................................................................... 1184.8 Signing of Performance Agreements by SMS Members .............................................................1254.9 Performance rewards......................................................................................................................1264.10 Foreign Workers ..............................................................................................................................1324.11 Leave utilisation ..............................................................................................................................1334.12 HIV and AIDS & Health promotion programmes ..........................................................................1354.13 Labour relations ..............................................................................................................................1374.14 Skills development ..........................................................................................................................1414.15 Injury on duty ...................................................................................................................................1424.16 Utilisation of consultants ...............................................................................................................1434.17 Severance Packages .......................................................................................................................148
5. PART E: FINANCIAL INFORMATION ..............................................................................................1495.1 Report of the Auditor General to the Eastern Cape provincial Legislature on vote no.05 Department of Roads and Public Works ....................................................................1505.2 Annual Financial Statements for the year ended 31 March 2017 ...............................................158 5.2.1AppropriationStatement ...........................................................................................................158 5.2.2.NotestotheAppropriationStatement .....................................................................................182 5.2.3 Statement of Financial Performance ........................................................................................185 5.2.4. Statement of Financial Position ...............................................................................................186 5.2.5.CashFlowStatement ..............................................................................................................187 5.2.6.Accountingpolicies ..................................................................................................................188 5.2.7.NotestotheAnnualFinancialStatements(includingAccountingPolicies) .............................197 5.2.8.AnnexurestotheAnnualFinancialStatements .......................................................................231
PART A:GENERAL INFORMATION
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
1. PART A: GENERAL INFORMATION
1.1 DEPARTMENT’S GENERAL INFORMATION
Full name of the department
Department of Roads and Public Works
PhysicaladdressofHeadOffice
Qhasana Building
IndependenceAvenue
Bhisho
5605
PostalAddressofHeadOffice
Private Bag x 0022
Bhisho
5605
Contact telephone numbers
0406024256(HeadofDepartment)
CallCentre:0800864951
Fax: 040 602 4001
Email address: info@ecdpw.gov.za
Website address: www.ecdpw.gov.za
Facebook page: Eastern Cape Department of Roads and Public Works
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
1.2 LIST OF ABBREVIATIONS/ACRONYMS
AFS AnnualFinancialStatements IAR ImmovableAssetRegisterAGSA Auditor-GeneralofSouthAfrica ICT Information&CommunicationTechnologyAIDS AcquiredImmuneDeficiencySyndrome IDMS Infrastructure Delivery Management System AIP AuditInterventionPlan IDP Integrated Development PlanAPP AnnualPerformancePlan IHC In-HouseConstruction
APTCOD AcceleratedProfessionalandTradeCompetencyDevelopment IT Information Technology
AR AnnualReport JPMC JointPropertyManagementCommitteeARP AnnualRecruitmentPlan JPS Junior Primary SchoolBCP BusinessContinuityPlan KPA KeyPerformanceAreaBCMM Buffalo city Metropolitan Municipality MEC MemberoftheExecutiveCouncilCAE ChiefAuditExecutive MMS Middle Management Service
C-AMP CustodianAssetManagementPlan MPAT ManagementPerformanceAssessmentTool
CFO ChiefFinancialOfficer MPSA MinisterofPublicServiceAdministrationCHC CommunityHealthCentre MTEF Medium Term Expenditure FrameworkCIO ChiefInformationOfficer N/A NotApplicableCRO ChiefRiskOfficer NDP NationalDevelopmentPlan
COBIT ControlObjectivesforInformationandRelated Technologies NT NationalTreasury
DORA DivisionofRevenueAct OFA OrganisationalFunctionalityAssessment
DPME DepartmentofPlanning,MonitoringandEvaluation OHS Occupational Health and Safety
DPSA DepartmentofPublicServiceAdministration OPD Out Patients DepartmentDRPW Department of Roads and Public Works OSD OccupationalSpecificDispensation
DRDLR Department of Rural Development and Land Reform O.R Oliver Tambo
DSD Department of Social Development OTP OfficeofthePremier
DSRAC DepartmentofSportsRecreationArtsandCulture PC PortfolioCommittee
DRP Disaster recovery Plan PAIA PromotionofAccesstoInformationActECD EarlyChildhoodDevelopment PAJA PromotionofAdministrativeJusticeActECSA EngineeringCouncilofSouthAfrica PCMT ProvincialCoordinatingManagementTeamEPWP Expanded Public Works Programme PDP Provincial Development PlanEXCO ExecutiveCommittee PFMA PublicFinanceManagementActFFC FinancialFiscalCommission PIC PublicInvestmentCorporation
FMF Facility Management Framework PMDS Performance Management Development System
FTE FullTimeEquivalent PMO ProjectManagementOffice
GIAMA GovernmentImmovableAssetManagementAct PMTSF Provincial Medium Term Strategic
FrameworkHDI Historically Disadvantaged Individuals POE Portfolio of Evidence
HIV HumanImmunodeficiencyVirus PPPFA Preferential Procurement Policy Framework Act
HOD Head of Department PPP Public Private PartnershipHR Human Resource RDLR Rural Development and Land Reform IAC InternalAuditCharter REMC RiskEthicsManagementCommittee
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PRMG ProvincialRoadsMaintenanceGrant SDM Service Delivery ModelPROMIS ProjectManagementSystem SITA SectorInformationTechnologyAgencyPSLDC ProvincialStateLandDisposalCommittee SLA ServiceLevelAgreementRAMS RoadsAssetManagementSystem SMME Small Medium Micro EnterprosesSAN StorageAreaNetwork SMS Senior Management Service
SANRAL SouthAfricanNationalRoadsAgencyLimited SSS Senior Secondary School
SCM SupplyChainManagement TA II TreasuryApprovalIISCOPA StandingCommitteeOnPublicAccounts TVET Technical Vocational Education TrainingSDF State Domestic Functions U-AMP UserAssetManagementPlanSDIP Service Delivery Improvement Plan WSP Workplace Skills Plan
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
1.3 FOREWORD BY MEC OF THE DEPARTMENT
Inmy2016/17BudgetVote,IlikenedtheDepartmentofRoadsandPublicWorks(DRPW)toawell-oiledmachinethatistoleadtheEasternCapeas the Infrastructure hub of the Province.We, therefore begun a newfinancial year determined and energised to deliver on ourmandate asa centre of infrastructure delivery in the Province. In so doing we were guidedbythedeclarationbytheAfricanNationalCongress,ofthe2016financialyearasthe“YearofAdvancingPeople’sPower”aswellasthegovernment’s resolute commitment to changing the lives of its citizensforthebetter.OurcommitmenttorealisethevisionoftheANCofabetterlifeforallhasneverbeengreater,andourstrideshaveneverbeenmorepronounced.
It,therefore,givesmegreatpleasuretopresenttheAnnualReportontheperformanceoftheDepartmentofRoadsandPublicWorksforthefinancialyearended31March2017.Throughthisreport,wearemeetingthe legal requirement inenhancingaccountabilityand transparency,butmost importantly,wealsowish tocommunicate and inform our people on how the Department has fared well in meeting its commitments to deliver services to better the lives of the people. This report highlights achievements attained and challenges encounteredinrelationtopolicydirectivesandstrategicoutcomerelatedgoalsforthefinancialyear.
Notwithstanding a myriad of challenges we have encountered over this financial year in the delivery ofinfrastructure,wearepleasedwiththeachievementswehaverecorded.Theseinclude
• contributingtowards improvingthequalityofhealth invariousregions in theprovincebybuildingthreehealthfacilitiesnamely:CloeteJoubertHospitalintheJoeGqabiRegion,StPatrick’sHospitalintheAlfredNzoRegionandCalaCHCinChrisHani.
• renovationsandconstructionofsecurityfencingforanumberofschoolstoensuresafetyoflearnersandprotection of assets ;
• constructionofEarlyChildDevelopmentCentres(ECDCs)inSaraBaartmanandChrisHaniDistricts;
• convertingUpperNgqungqumudschool,intheO.R.TamboRegionintoconcretestructure;
• repairs and renovations at MosesMabida Library in Sara Baartman and Cathcart Public Libraries inAmatholeRegion;and
• increasingprovisionofofficeaccommodationtovariousgovernmentdepartmentsintheprovincefrom147743m² in 2015/16 to 149 000m2in2016/17.PlanstoimprovedeliveryofofficeaccommodationservicesthroughtheBhishoOfficePrecinctalsoreachedadvancedstagesduringtheyearunderreview.HavingobtainedtheTreasuryApproval(TAII)(approvalofspecificationstogooutontenderincludingdraftPPPagreement),thedepartmentisnowundertakingprocurementprocessesforthisnewdevelopment.
TheRoadsinfrastructureportfoliohasseenmajorroadsbeingrevitalizedacrosstheprovinceincludingthefollowing:-
• CentanetoQholorha
• SLA:TsolwanaMunicipality
• N6toWriggleswade
• CoffeeBaytoZithulele
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ThedepartmentfurtherconstructedanumberofcriticalbridgestoconnectinaccessiblevillagesnamelyBawa,ZazulwanaandMaziziniBridgesintheAmatholeRegionandMancamBridgeintheO.R.TamboRegion.Thishasprovidedmuchneededaccesstoschoolsbychildrenandclinicsbypatients,especiallyduringtherainyseasons. In the maintenance sub-programme the department exceeded targets for both re-gravelling of gravel roads and blacktop patching. This was mainly due to a conscious decision that was taken to focus on more sustainable and durable blacktop patching and re-gravelling activities rather than blading and resealing.
Thecommitmentmadebythedepartmenttocreatejobsaimedatensuringsustainablelivelihoodsforthepeopleofthisprovince,isevidentinthenumberofjobopportunitiescreatedbyExpandedPublicWorksProgramme.TheDepartment ofRoadsandPublicWorks, oncemoreexceeded its planned targets by creating54479workopportunities.Asacoordinatingdepartment,DRPWhasfurtherverifiedover143198workopportunitiescreated provincially despite the delays experienced due to challenges with the electronic system that was rolledoutduringthefinancialyearunderreview.
Tosupportallofthiswork,wehaveimprovedoursystems,processesandprocedurestoensurethateffectivegovernance iscontinuouslypromoted.Concertedeffortsonourpart tobuild internalcapacitybyputting inplaceregulatorymechanismstoconsolidatethecultureofworkingefficientlyledtoacontinuousimprovementinauditoutcomesfromadisclaimerin2012/13toaqualifiedauditopinioninthe2013/14and2014/15financialyears.ThismomentumofbuildingadepartmentthatisefficientandeffectivehascontinuedasthedepartmentachievedanunqualifiedauditopinionfromtheAuditor-GeneralofSouthAfricainthe2015/16financialyearandcontinuedtosustainthatachievementinthe2016-17financialyear.
We are on course to be a change agent with our delivery partners and communities in achieving departmental goals of transforming the sector to provide sustainable infrastructure that will result in socio-economic transformation,aninclusivegrowthpathandeconomicdevelopmentfortheprovince.
Weonceagain,acknowledgetheunwaveringsupportandcontributionmadebyourHonourablePremier,MrP.Masualle,theentireExecutiveCommittee(EXCO)members(MEC’s)andstakeholdersinensuringthatwedeliverinourmandateofbeenaleaderintheprovisionofhighqualityservicesininfrastructuredelivery.
I thank you.
Ms T. L. MarawuMECRoadsandPublicWorks
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1.4 REPORT OF THE ACCOUNTING OFFICER
Overview of the Operations of the department
ThisAnnualReport ispresentedata timewhen thesectordepartmentis accelerating the implementation of processes aimed at ensuring full responsiveness to theprovisionsof theGovernment ImmovableAssetsManagement Act of 2007 (GIAMA), with particular reference to thedepartment’s role as a custodian of immovable assets. The ExecutiveCouncilapprovaloftheFacilitiesManagementFrameworkrepresentsthefinalcornerstoneinthepositioningofthedepartmentasanervecentreofinfrastructuredelivery.ThisFrameworkfundamentallyre-definestheroleof DRPW and client departments in the infrastructure delivery value chain and creates an effective alignment totheInfrastructureDeliveryManagementSystem(IDMS),promisingtodeliverefficienciestoinfrastructuredelivery,maintenanceandsupport.
The implementation of the Framework will be further reinforced by the coming on-stream of the ProjectManagementOffice (PMO) in the2017/18 financial yearwhichwasprocured through competitive biddingduring the period under review. The implementation of a seamlessly integrated value chain for infrastructure delivery as demanded by the IDMS was given impetus by the establishment of the Infrastructure Procurement Directorate. Short-term contract capacity was mobilized while measures to put in place permanent capacity got underway.
FollowingconcurrenceoftheMinisterofPublicServiceandAdministration(MPSA),thedepartmentbegantheprocessofimplementingitsinterimstructure.Asatfinancialyear-end,theperson-to-postmatchinghadreachedan advanced stage and nearing completion. The implementation process also involved a process to ensure thatdirectivesof theMPSArelating toalignment togenericstructureswereadhered to.During theperiodunderreview,thedepartmentimplementedthequalityassuranceprocessonPerformanceAgreementsforallSMSmemberstoensurecompliancewiththecontractingprescriptsandtoachievealignmenttotheAnnualPerformancePlan.Thesuccessful implementationof thequality assuranceprocessaspart of theannualperformance management cycle will go a long way in closing the gap between individual and organisational performance.
Effortstocontinuallystrengthenthecontrolenvironmentweregivenasignificantboostwiththeimplementationoftheimprovedcontrolsattheendofthesecondquarter.TheimprovedcontrolsincludedrevisionstoSCMprocesses,revisionstoandintroductionofnewchecklistsforprevention,detection,reportingandcondoningorwritingoffofirregular,fruitlessandwastefulexpenditure.BothfinancialandpublicservicedelegationswerereviewedinlinewiththeMPSA’sdirectiveonPublicadministrationandManagementDelegations.
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Overviewofthefinancialresultsofthedepartment
Departmental receipts
Items
2016/17 2015/16
Estimate Actual collection
(Over)/Under
collection Estimate Actual
collection
(Over)/Under
collection R’000 R’000 R’000 R’000 R’000 R’000
Rentals Dwellings 30 720 11 953 18 767 25 111 12 381 12 730
Sale of Tenders 1 678 -1 678 2 394 -2 394
Sale of scrap 1 -1 39 -39
Rent on land - - - -
Sale of capital assets 13 231 -13 231 9 002 -9 002
CommissionInsurance 1 290 -1 290 1 241 -1 241
Transport Fees - - 1 -1
Refuse Removal 9 -9 16 -16
AssetsandLiabilities 400 2 544 -2 144 743 -743
Total 31 120 30 706 414 25 111 25 817 -706
Ownrevenueismainlyderivedfromtherentaldwellings,saleofgoodsandservicesotherthancapitalassets.Other sources include sale of tender documents as well as commissions.
Fortheperiodunderreview,departmentcollectedlessthantheprojectedestimatebyR414,000.Themainreason for the under collection is due to the delayed implementation of the parking policy and the refusal by the tenants to pay the market related rental rates. The refusal to pay market related rentals is mainly due to the poor condition of the state owned properties.
Measurestoraiseadditionalrevenueorefficient/effectivecollection:
Implementation plan for revenue management strategy
• Astrategyhasbeendevelopedformanagementofclosedschoolsforconversionintorevenuegenerationfacilities.
• TodevelopaPolicyandImplementationplanonOutdoorAdvertising.
• Disposalofsuperflousresidentialpropertiesinafairandtransparentmanner,givingpreferencetoexistingtenants who accept departmental offers.
• IssueExpressionsof Interest forsubmissionofproposalsonproperties identifiedfor landandpropertydevelopment,andforwhichfeasibilitystudieshavebeencompleted.
• Identify properties for developmental leases (Commercial, vending machine installation, unutilisedbuildings,andotherswithdevelopmentpotential)withprospectivebidders.
• Implementationofleasesonstate-ownedpropertieswithCellularNetworkServiceProvidersforinordertogenerate revenue.
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Sale of capital assets and reasons for the sale:
The department did not budget to receive revenue from the sale of assets in the 2016/17 financial year.SomeofthemoveableassetsweresoldatanauctionduringtheyearunderreviewandR13,231millionwascollected. The reason for the sale of these assets was due to the fact that they were obsolete and redundant. These moveable assets could not be donated to any Institution/Entity given their obsolete or unserviceable condition. These items would have been exposed to vandalism and theft and further deteriorations due to weather conditions were they not disposed.
It is imperative to note that the disposal process does not only terminate the use or control of a particular asset but also generates the need for a replacement to support continuous service delivery. Thus items disposed of needtobereplacedinordertomaintainthefleetsizerequiredforroadconstructionandmaintenance.
Bad debts written off:
DuringtheperiodunderreviewacumulativeamountofR1,970,190(2015/16:R811000)forbaddebtswaswritten-off. The bad debts written-off relate to miscellaneous suspense accounts and debts of employees who havesincelefttheservice.ThewriteoffwasdoneintermsofPFMAS76(1)(e)andS76(4)(a)andTreasuryRegulations 11.4.1.
Programme Expenditure
Fortheperiodunderreview(2016/17),expenditurestoodatR4,573billionor99%ofthetotaladjustedbudgetofR4,596billion.Thetablebelowprovidestheexpendituretrendperprogramme.
Programme Name
2016/17 2015/16
Final Appropriation
Actual Expenditure
(Over)Under
Expenditure
Final Appropriation
Actual Expenditure
(Over)Under
Expenditure R’000 R’000 R’000 R’000 R’000 R’000
1. Administration 570 112 561 730 8 382 521 880 512 291 9 589
2. Public Works Infrastructure 1 358 922 1 358 922 - 1 276 821 1 254 683 22 138
3. Transport Infrastructure 2 077 878 2 063 130 14 748 2 002 784 2 001 953 831
4.Expanded Public Works Programme
588 947 588 947 - 579 946 579 156 790
Total 4 595 859 4 572 729 23 130 4 381 431 4 348 083 33 348
ThedepartmentpostedanunderexpenditureofR23,130million,whichisattributabletothefollowing:
Programme 1: Administration
• TheincorrectdeliveryofconsultantsinvoicesamountingtoR1.598million.
• InabilitytoprocessaninvoicetotheamountofR5.084millionduetothethedeliveryoflaptopswhichdidnotmeettheissuedspecificationwithprocuredlaptops.
• InabilitytoprocessanincorrectinvoicetotheamountofR1.357millionforservicesrenderedintheprojectofenhancingthePROMIS,theintegratedprojectmanagementsystemofthedepartment.Theincorrectinvoice had to be returned back to the service provider for correction.
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Programme 2: Public Works Infrastructure
• Thereisnounderexpenditurerecordedunderthisprogramme.
Programme 3: Transport Infrastructure
• TheunderexpenditureistotheamountofR14,748millionwhichwasasaresultoflateawardingofdisasterprojects(DR08121,DR08116,DR08120,DR08245,DR08119,DR08100),re-advertised(DR08017andDR08079)duetonon-responsivenessofbidderstotheconditionsofthetenderaswellasthedelaysinthecompletionofawardedproject(DR08125)duetocommunityproteststhatresultedinstoppageofwork.
Programme 4: Expanded Public Works Programme
• Thereisnounderexpenditurerecordedunderthisprogramme.
Virements and rollovers
VirementswereeffectedduringthefinancialyeartorelievethecostpressuresonProgramme3:TransportInfrastructure and Programme 4: Expanded Public Works Programme. The cost pressures were as a result of theprojectsthatmovedfasterthananticipated.Thesevirementswerewithinthelegislated8%thresholdandin line with all relevant legislation and regulations governing virements.
The table below provides the summary of the virements that were effected in the period under review
Appropriation per programme 2016/17 2015/16
Voted funds and Direct charges
Adjusted Appropria-
tion
Shifting of Funds Virement
Final Ap-propria-
tion
Actual Expendi-
ture Variance
Expen-diture as %offinal
appro-priation
Final Ap-propria-
tion
Actual Expendi-
ture
R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000Programme 1. Administration 579 385 - (9273) 570 112 561 730 8 382 98.5% 521 880 512 291
2. Public Works 1 391 550 - (32628) 1 358 922 1 358 922 - 100.0% 1 276 821 1 254 683
3. Transport Infrastructure 2 052 199 - 25 679 2 077 878 2 063 130 14 748 99.3% 2 002 784 2 001 953
4. Expanded Public Works Programme 572 725 - 16 222 588 947 588 947 - 100.0% 579 946 579 156
Programme sub total 4 595 859 - - 4 595 859 4 572 729 23 130 99.5% 4 381 431 4 348 083
Statutory Appropriation
Members’remuneration
Total 4 595 859 - - 4 595 859 4 572 729 23 130 99.5% 4 381 431 4 348 083
ArolloverapplicationofR6,441millionwasmadefortheequitableshareforthefollowingcommitments:
1. Laptopsforstaff–R5,084million;and
2. SoftwareenhancementofthePROMISsystem–R1,357million.
AnamountofR14,071millionhasbeenrequestedtoberolledoverforthePRMGforthecommitteddisasterprojects.
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Future plans of the department
• Implementationofthedepartment’sHumanResourcesStrategytocreateastrategicfocusonaddressingchallenges,whichincludeskillsshortfallintechnicalareas,recruitment,andsuccessionplanningamongstothers.
• Buildingcriticaltechnicalcapacityinthecoretechnicalareasofthedepartment.
• MainstreamEPWP interventions tomaximise impact in areas suchas artisan development, emergingcontractor empowerment and creating sustainable livelihoods for impoverished communities.
Public Private Partnerships
APublic-Private-Partnership(PPP)fortheconstructionoftheBhishoPrecinctwasregisteredwiththeNationalTreasury.Duringtheperiodunderreview,NationalTreasurygrantedApprovalIIofthePPP.Constructionworkon the precinct is expected to commence during 2017/18.
Discontinued Activities/Activities to be discontinued
Therewerenoactivitiesthatwerediscontinuedduringtheperiodunderreview.However,therole,functionand institutional arrangements related to In-House construction will come under sharp focus in the succeeding financialyearandmayresultinthediscontinuationofsomeactivitiesinthefuture.
New or Proposed Activities
The approval of the Facilities Management Framework imposed new activities on the department both during theyearunderreviewandthesubsequentfinancialyears. ThefollowingactivitiesrelatingtoallProvincialstate-owned facilities were taken on by the department during the reporting period:
• Day-to-daymaintenance,ad-hoc/unplannedmaintenanceincludingmaintenanceofplantandequipment;
• Cleaningofgardensandoutsidewindowsandlandscaping;
• Paymentofmunicipalservices(excludingschoolsandclinics)inrespectofofficeaccommodationrelatingto leased properties only;
• Paymentofratesandtaxes;
• Provisionofparkingservices;
• Installationandmaintenanceofairconditioningsystems;
• Installationandmaintenanceoffireextinguishingequipment;
• InstallationofITcabling,extensionleadandmultiplug.Onlyinrespectofleasedpropertiesandexcludingstate-owned facilities;
• Provisionofsecurityguards;
• Physical/Technicalconditionassessmentofbuildings;
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
The following activities relating to all provincial state-owned facilities will be taken-on by the department in 2017/18:
• Paymentforparkingservices;
• InstallationofITcabling,extensionleadandmultiplug.Inrespectofstate-ownedfacilities;
• Provisionofmovableassetsecurity;
• Provisionofelectronicaccesscontrolsystems.
Supply Chain Management
During the year under reviewSCMbusinessprocesseswere revisedas part of strengthening the controlenvironment.
The following processes and/or checklists were approved and implemented:
- Prevention,detection,reporting,condoningandwritingoffofirregular,fruitlessandwastefulexpenditure.
- Frameworkforinvestigatingirregular,fruitlessandwastefulexpenditure.
- Revision of terms of reference and rationalisation of procurement committees.
- Establishment of procurement committees for infrastructure procurement
- Policy on Infrastructure Procurement and Delivery Management
The snow-ball effect of irregular expenditure remains a pervasive challenge. The department initiated investigationsintocasesofirregular,fruitlessandwastefulexpenditurewithavalueinexcessofR600million.Theoutcomeoftheseinvestigationswillseeasignificantreductioninirregularexpenditureandanimprovedcontrol environment.
Gifts and Donations received in kind from non-related parties
There are no gifts recorded during the reporting period.
Exemptions and deviations received from National Treasury
NoexemptionsordeviationshavebeenreceivedfromNationalTreasury.
Events after reporting date
EventsafterreportingdatearedocumentedintheapplicablenotesintheAnnualFinancialStatements.
Other
Noothermaterialfactsorcircumstances,whichmayhaveaneffectontheinterpretationandfairpresentationofthefinancialstatements.
Acknowledgements or Appreciations
Let me take this opportunity to express my sincere appreciation for the leadership and support provided by the HonourableMEC,ThandiswaMarawuandtheTopManagementoftheDepartment.LetmefurtherextendthisappreciationtotheDepartment’sseniormanagementandallstaffofthedepartmentinensuringthatservicedelivery is not compromised.
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
The department would not be able to sustain its forward momentum in improving service delivery without the immense support of and oversight by thePortfolioCommittee onRoads andPublicWorks, StandingCommitteeonPublicAccounts(SCOPA),theAuditCommittee,theProvincialTreasuryandtheOfficeofthePremier. I therefore acknowledge their invaluable support and guidance and their efforts in ensuring that the department is held accountable for delivering on the mandate to the public.
Conclusion
ThedepartmentpresentsthisreportintermsofthePublicServiceActandthePublicFinanceManagementAct.ThisreportofferstheAccountingOfficertheopportunitytofullyaccountforboththefinancialandnon-financialactivitiesfortheyearunderreviewandtheresultsthereofascontainedindetailinthisAnnualReport.TheAnnualFinancialStatementshavebeenpreparedintermsoftheGuidetothePreparationoftheAnnualFinancialStatementsasissuedbyNationalTreasury.
Approval and sign off
Advocate James MlawuHead of Department31August2017
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
1.5 STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF THE ACCURACY OF THE ANNUAL REPORT
Tothebestofmyknowledgeandbelief,Iconfirmthefollowing:
Allinformationandamountsdisclosedthroughouttheannualreportareconsistent.
Theannualreportiscomplete,accurateandisfreefromanyomissions.
The annual report has been prepared in accordance with the guidelines on the annual report as issued by NationalTreasury.
TheAnnualFinancialStatements(PartE)havebeenpreparedinaccordancewiththemodifiedcashstandardandtherelevantframeworksandguidelinesissuedbytheNationalTreasury.
TheAccounting Officer is responsible for the preparation of the annual financial statements and for thejudgementsmadeinthisinformation.
TheAccountingOfficer is responsible for establishing, and implementing a systemof internal control thathas been designed to provide reasonable assurance as to the integrity and reliability of the performance information,thehumanresourcesinformationandtheannualfinancialstatements.
Theexternalauditorsareengagedtoexpressanindependentopinionontheannualfinancialstatements.
Inmyopinion,theannualreportfairlyreflectstheoperations,theperformanceinformation,thehumanresourcesinformationandthefinancialaffairsofthedepartmentforthefinancialyearended31March2017.
Yoursfaithfully
Advocate James Mlawu Head of Department
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1.6 STRATEGIC OVERVIEW
1.6.1 Vision “Leader in the provision of high quality services in infrastructure delivery”
1.6.2 Mission “A custodian of provincial government immovable assets and a provider of sustainable infrastructure resulting in socio-economic reforms, sector transformation and development”
1.6.3 Values The DRPW holds the following values:
Values Statements
Commitment DRPW employees recognise that they have chosen to become public servants and, as such, are responsible and accountable to the peoplethey serve, the people of the Eastern Cape. This commitment will bedemonstrated in upholding and driving the values of the DRPW in the daytodayactivitiesregardlessofwhethertheyformpartofmanagement,operations,financeoradministration.
Integrity The department will consistently honour its commitments to its clients,stakeholdersandthepeopleupholdethicalconductandbehaviour.Assuchintegrity will form the foundation for good governance within DRPW.
Accountability Each individual in the DRPW is directly or indirectly involved in government service delivery in so far as infrastructure management and maintenance areconcerned.Assucheachindividualisaccountableforhis/heractions.
Professionalism As a department which provides a professional service in relation toinfrastructuredelivery,roaddeliveryandoverallinfrastructuremanagementandmaintenance,thedepartmentcommitsitselftoprofessionalconductinallareasofmanagement,operations,financeandadministration.
Service excellence The department will strive for excellence in the delivery of department mandate and in the execution of services and commit ourselves to become thebestin“whatwedoandhowwedoit’’,withaworkforcethatismotivatedand diligent in dealings with all departmental stakeholders.
Transparency The staff members will display transparency in the way we work and communicate with honesty and integrity in all relationships.
Innovation The staff members will embrace a challenging style that encourages creativity,freethoughtandcalculatedrisk-takinginpursuitofeverhighergoals.
Fairness Thestaffmemberswillacceptresponsibilityforconsequencesandcommitto fair application of policies without abuse and manipulation.
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1.6.4. Legislative and Other Mandates
Constitutional Mandates
Legislative Source Directives in relation to the mandate, roles and responsibilities of the DRPW
Constitution of the Republic of South Africa, 1996 (Act108of1996)
Part A of schedule 4: Public Works has a responsibility only in respect of the needs of the provincial departments in the discharge of their responsibilities to administer functions specially assigned to them in terms oftheconstitutionoranyotherlaw(ConcurrentnationaldepartmentistheDepartmentofPublicWorks).
Part A of the schedule 5: which deals with the “Functional Areas ofExclusiveprovincialLegislativeCompetence”liststheProvincialRoadsasone of the competencies allocated to the DRPW.
Legislative Mandates
The legislative mandates for the DRPW comprise the following legal prescripts:
Legislative Source Directives in relation to the mandate, roles and responsibilities of the DRPW
National
Government Immovable Asset Management, Act 19 of 2007
Intermsofsection4(2)(a)(b)(ii)&(c)DRPWisdesignatedascustodianofEasternCapeProvincialimmovableassetsresponsibleforallactivitiesthatareassociatedwithcommonlawownershipincludingplanning,acquiring,managing and disposing immovable assets in relation to government officespace,governmentwarehousing,socio-economicinfrastructuree.g.schools,clinics,hospitalsetc.keyresponsibilities:citefromGIAMA.
Provincial
Eastern Cape State Land Disposal, Act 7 of 2007
In termsofsection5(1) (2)&(3)of theAct, theDRPWisresponsible foracquisitionanddisposalof immovablepropertyonbehalfof theEasternCape Provincial Government subject to the approval of the Premier-in-Executive.
Eastern Cape Roads Act (3/2003)
ThisAct was promulgated for the stated objectives “To consolidate thelaws relating to provincial roadsof theEasternCape; to provide for theplanning, design, development, construction, financing, management,control,maintenance, protection and rehabilitation of provincial roads intheProvinceof theEasternCape;and toprovide formattersconnectedtherewith.”P1For instance, theAct requires theMEC tocompilea listofall provincialproclaimedroads.(P6)ItfurtherstatesthatonlyProvincialroadslistedintermsoftheActmustbeunderthecontrolandsupervisionoftheMECandhe/sheisnotobligedtocontrol,maintain,protectorrehabilitateanyroadnotlisted.(p7)
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1.6.5 DRPW organisational structure
Member of the Executive Council
Ms T. Marawu
Head of Department
Adv. J. Mlawu
Chief Financial Officer
Ms Z. Madikazi (Acting)
Chief Information Officer
Ms Z. Ngcwabe
Chief Director: Corporate Services
Mr S. Kufa
Chief Director: Strategic Management
Unit
Ms N. Matyana
Chief Audit Executive
Ms K. Siqendu Chief Director: Public Works Infrastructure
Mr M. Mduba
Ms Z. Madikazi (Acting)
Chief Director: Immovable Asset
Managemet
Ms P. Malgas
Chief Director: Expanded Public Works Programme
Mr Q. Mageza
Ms Z. Madikazi (Acting)
Deputy Director General: Transport Infrastructure
Mr M. Mafani (Acting)
Ms Z. Madikazi (Acting)
Regional Director: Alfred Nzo
Ms A. Moleko
Regional Director: Amathole
Dr P. Lupuwana
Regional Director: Chris Hani
Mr Z. Kalako
Regional Director: Joe Gqabi
Mr M. Putu
Regional Director: OR Tambo
Ms K. Tyali
Regional Director: Sarah Baartman
Mr L. Manqele
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1.7 ENTITIES REPORTING TO THE MEC
There are no entities in the department’s portfolio reporting to the MEC.
PART B: PERFORMANCE INFORMATION
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2. PART B: PERFORMANCE INFORMATION
2.1 AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES
Theauditor-general’sreportonpredeterminedobjectivesisdocumentedunderthesub-heading“ReportontheauditoftheAnnualPerformanceReport”publishedasPartE(AnnualFinancialStatementsoftheDepartment’sAnnualReport).
2.2 OVERVIEW OF DEPARTMENTAL PERFORMANCE
2.2.1 Service delivery environment
Custodianship of Provincial Immovable Assets
Initsroleasacustodianofimmovableassetsoftheprovince,thedepartmenthasdonewelltoensurethattheinformationunderitscustodyisup-to-date,accurateandreliable.Thisisdonethroughpro-activelyandcontinuously updating the ImmovableAsset Register (IAR /Logica system) with newly vested properties,with value added information such as tenure and land use information obtained through land audits and site inspections.
The challenge of assets that reflected R1 or no value were successfully mitigated when the departmentcommenced with the implementation of municipal valuations as well as values for exceptions per the new disclosurerequirementfromNationalTreasury.Thisprocesswillassistgovernmenttodiscloseitsassetsatamorerealisticvalue,whichcontributetopositivenationalcreditratings.
Furthermore, the Rates and Taxes Turn-Around Strategy implemented in the 2016/17 financial year hascontributed to the improved relations between the department and municipalities especially on clearance of old debt, payment of current debt and alignment of asset registers between the respective spheres ofgovernment.
Thepicture in relation to immovableassets in theprovince isbecomingclearer.Todate,a totalof21531propertiesarerecordedintheRegister(Logica).Thisisanincreaseof812recordsfromthepreviousfinancialyear. The number of assets recorded includes all assets which the department is liable for the payment of ratesandtaxedtomunicipalities,including1426statedomesticfunctionsonunsurveyedland(propertynotsurveyed)aswellas3111 landparcels (propertynot registered) in the relevantdeedsoffice.The21531comprisesof11422propertiescontrolledbyDRPWasreflectedinAnnexure9oftheARand10909propertiescontrolledbyDepartmentofHumanSettlement.Thelatterfigureisincludedbecausethedepartmentisliablefor the payment of rats & taxes to municipality.
The department has been performing the land administration function in the environment where most of the provincial facilities are sitting on unsurveyed land. The department then took the initiative and commenced with a provincial survey programme over a three-year period in order to fast track surveying of unsurveyed provincialfacilities.Itsuccessfullysurveyed205propertiesinthe2016/17financialyearagainstthetargetof100.Alloftheaboveledtoanincreaseinratesandtaxespaidtostrugglingruralmunicipalitiesthusimprovingtheir viability as envisaged in the provincial priorities.
Thedepartmentalsoprides itself for the reliabilityof information in its ImmovableAssetRegister (IAR)asconfirmedbytheAuditor-Generalthroughanunqualifiedauditoutcome.
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Thisisanoutstandingachievement,consideringthattheEasternCapeProvincehasthemostnumberofstatelandparcelsinthecountry,andfurtherconsideringthecomplexityofthehistoriclandregistrationandtenuresystemsinheritedfromthecolonialpast.Moreimportantly,thisistheinformationthatgovernmentneedstoplanbetter,basedonreliableevidence.
Inordertoimproverevenuegenerationthroughprovincialimmovableassets,thedepartmentandthelocallybasedEasternCapeDevelopmentCorporation(ECDC)establishedaJointPropertyManagementCommittee(JPMC).ThepurposeoftheJPMCistoensurethatthereisco-operationandalignmentinthemannerinwhichthe two entities deal with revenue generation in relation to immovable assets of strategic nature as well as to share property related information and assist each other in skills transfer.
ThedepartmentalsoapprovedtheRevenueManagementStrategy,whichwillassisttheprovincetoincreaserevenuegeneratedthroughitspropertyportfolio.Thestrategyoutlinesprojects,whichhavebeenidentifiedtogenerateneededadditionalrevenuestreamstomeettheProvincialGovernment’sdevelopmentalobjectives.These revenue streams include, inter alia, outdoor advertising, telecommunication leases, parking fees,commercialpartnership,retailfacilitiesonstatepremisesandsigningofnewleases.
Inco-operationwithotherstakeholders,thedepartmentcompleted90conditionassessmentswithmaintenanceplans for state-owned buildings. It also continued to provide monitoring and technical assistance to the User departments on compilation of their UserAsset Management Plans (U-AMP).All of this information wassuccessfullyincorporatedintotheCustodianAssetManagementPlan(C-AMP)basedonthenewspacenormsandsubmittedtoProvincialTreasurytoguideplanningandbudgetallocationfortheofficeaccommodationneeds of all provincial user departments.
To date, the department provides office accommodation to the extent of 149 000 squaremeters to userdepartments.PlanstoimprovedeliveryofofficeaccommodationservicesthroughtheBhishoOfficePrecinctreached advanced stages during the year under review. The architecture designs of the complex were completed andapproved.TheTAIIapprovalforspecificationstogooutontenderincludingadraftPPPagreementfortheprecinct was obtained. The funding challenge to secure bulk service infrastructure has been resolved with an agreementwithBuffaloCityMetropolitanMunicipalityandNationalTreasury.
Building Infrastructure Implementation
Inkeepingwithitsmandateasthe“nervecentre”forinfrastructuredeliveryintheprovince,thedepartmenthassuccessfullycontributedtowardsincreasingaccesstoqualityservices,particularlythroughprovisionofeducation,healthcareandtransportinfrastructureintheprovince.MostchallengesthatcontinuedtohampertheDepartmentofRoadsandPublicWorksfromdeliveringonitsmandatewereinthemain,thefundingandcapacity constraints.
The department has been specifically strugglingwith balancing its transformation agenda and successfuldelivery of its services. The transformation agenda of the department intends to provide opportunities for empowering the emerging contractors in the construction sector as a means of skills development. On the other hand, the lackofcapacitycoupledwithfinancialmanagementconstraintsamongtheemergingcontractorsthatwereusedby thedepartment todeliveron itsprojects,derailed theprogress towardsachievementofobjectives.Despitethesechallenges,thedepartmenthascompletedallthree(3)healthfacilitiesplannedforthe2016/17financialyear.
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TheseareCloeteJoubertHospital,StPatricksHospitalandCalaCHCbuildingrepairsandrenovations.Thedepartmenthasfurthercompletedprojectsrelatingtothefollowingschools:UpperNgqungquJSS,MagwaxazaJPS,BulelaniSSSandMfesaneSSS.
Inanongoingefforttofullyrespondtotheneedsoftheclientdepartments,thedepartmenthascompletedrenovationstotheZwelitshaRoadsLaboratory,ButterworthTrainingCentre,commissionedairconditionersatMalutiCollege,whichhousesanumberofgovernmentdepartmentslikeSports,Recreation,ArtsandCulture(DSRAC), Education,Agriculture, Economic Development & Environmental Affairs, and Health, and alsoreplacedseven(7)passengerliftsatTyamzashebuildinginBhishoandagoodsliftsatDSRACbuildinginKingWilliam’sTown.Theseprojectshavegreenbuildingfeaturesonenergysavingthroughlights.Inaneffortto taketheGreenBuilding initiativeforward, thedepartmenthasfurtherprocuredtheservicesofaserviceprovider to conduct energy use audits.
Transport Infrastructure Implementation
The DRPW is responsible for the maintenance of the provincial road network of approximately 42 000km of pavedandunpavedroads.Only10.1%or4213.33kmispavedand89.9%percentor37512.94kmoftheroadnetworkisunpaved.TheDRPWhasdevelopedandimplementedaRoadAssetManagementSystem(RAMS),which isacomprehensivesetofmanagementproceduresthatareusedtomonitor,maintainandimprovetheconditionoftheroadnetwork.Anincreasingamountofprovincialroadsassessedisfoundtobeina poor to very poor condition. The funding model used for the road network is also not assisting the province in alleviating the deterioration of its road network over the years.
The Premier committed to ensuring that SMMEs benefit from government spending, and the DRPW iscontinuingtoimplementthiscommitmentinallitsprojects.Thisefforthasalsometsomechallengeswithlocalcontractorsdisputingsomeoftheappointmentsintheroadsinfrastructurespace,resultingindelaysinsomeoftheprojects.Thedepartmenthasmadeeffortstostrengthensocialfacilitationtounblockobstaclesthatwerehampering progress in the delivery of services.
Becauseoftheabove,theprogressonmulti-yearprojectsremainedsteady.Insomeinstances,thedepartmentcould not achieve desired outcomes on rehabilitation and reseal of surfaced roads because of the control measures that were put in place to curb possible unauthorised expenditure. The funds intended for these programmes were reprioritised to existing commitments in the regravelling and blacktop patching targets resulting in over achievement in those areas.
Job opportunities created through EPWP
The Expanded PublicWorks Programme (EPWP), which is the flagship programme for job creation andpovertyalleviation,continuedtoexceeditsplannedtargetsbyemployinglabour-intensivemethodsinsomeof the roadsandbuildings infrastructureprojects.This achievement showsDRPW’s commitment to usinginfrastructureexpendituretobenefitthepoorestofthepoorintheprovince.
The department is also on course in developing a skilled and capable workforce to support an inclusive growth path.Ofthe854learnersrecruitedandtrained,only492wereultimatelyappointed.ThiswasduetodelaysinprovincialprocessesforapprovalofappointingAPTCoDlearnerscoupledwiththenon-availabilityoffunds.Thedepartmentcontinuedtodowellinrelationtoitsstrategicobjectiveofpromoting,integrating,coordinatingandmonitoringtheimplementationofEPWPPhase3.Allseven(7)interventionstosupportpublicbodieswereimplemented and it also ensured that all public bodies are reporting on the EPWP reporting system.
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Theamalgamationofmunicipalities,followingthelocalgovernmentelectionnearlyderailedtheachievementoftheabove-mentionedstrategicobjectivebecausethechangesinthepoliticalleadershipatlocalgovernmentlevel negatively affected the sitting of roads forum meetings.
2.2.2 Service Delivery Improvement Plan
ThefollowingtablesreflectthecomponentsoftheSDIPaswellasprogressmadeintheimplementationofthe plans.
Main services and standards
Main services Beneficiaries Current/actual standard of service
Desired standard of service
Actual achievement
Maintenance of roads network.
Road users. The department exceeded the desired standard by maintaining 217 261m2
of provincially proclaimed roads infrastructure within agreed time period. This amountsto117%of the 185 739m2
To maintain at least70%ofthe 185 739 m2 p.a. of provincial proclaimed roads within the agreed time period.
The department maintained 281 278.6m2 of Provincial proclaimed roads infrastructure within agreed time period.
Thisamountedto113%of the 5yr target. The rehabilitation and reseal programmes have been deferred to the 2017/18 financialyear.Thisisdue to delays in the Bisho Revitalization project,andtheimpact of delays in procurement for the reseals programme.
Procurement of goods and service.
Departmental internal and external stakeholders and client departments.
The department did not achieve the planned standard in2015/16 103 (75%)outof138total number of bids received were processed within an average of 214 days.
Process at least70%ofprocurement requestsforgoods and services above the R500 000.00 threshold within 110 days of receipt of the request.
The department provided82%ofexpense lease portfolio for 2016/17 within the valid period.
Hiring and letting accommodation.
Clientdepartments and tenants.
The department provided 79%(95/121)of leased accommodation within the valid period.
80%ofleasedaccommodation provided within 90 days.
The department provided82%oftheexpense lease portfolio for2016/17financialyear,withinthevalidperiod.
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2.2.3BathoPelearrangementswithbeneficiaries(ConsultationAccessetc.)
Key Service 1: Maintenance of Roads network
Current arrangement Desired arrangement Actual achievement
Consultation
Communityizimbizo,Road Forums and Integrated Development Plan forums.
Communityizimbizo,Road forums and IDP forums.
Duringtheyearunderreview,RoadForummeetingswere held in 8 municipalities across the province. Some could not sit due to local government elections which disrupted the convening of roads forums.Changes in thepolitical leadershipat localgovernment level also negatively affected the sitting of roads forum meetings.Through the MEC’s office, the department hadseveral engagements with the roads stakeholders in Nyandeni Local Municipality, Mhlontlo LocalMunicipality and during the launch of Dwesa road in Willowvale as well as other roads to be constructed in 2017/2018.
Access
Districtroadsforum,District Roads Engineerofficeannually.
Districtroadsforum,District Roads Engineerofficequarterly.
Road users accessed the roads maintenance servicesattheHeadOfficeinBhishoandinallsixregionalofficesatMtAyliff,Mthatha,EastLondon,PortElizabeth,QueenstownandSterkspruit.This service was also accessible over a toll-free telephone line to the department.
Courtesy
Front-line personnel trained on the Batho Pele Principles on how to deal with stakeholders.
Front-line personnel trained on the Batho Pele Principles on how to deal with stakeholders. Re-arrangement of the sitting of customer careofficersandsecurityofficesinthemain entrance.
Several road users have engaged with courteous DRPWofficials likeRegionalDirectorsandDistrictRoad Engineers in Regions as well as front-line customer care officials at HeadOffice and over atoll-free telephone line to the department. Alltheseofficialshavebeenprovidedwithnametagstoensureeaseofidentificationshoulddissatisfactoryservice be received by clients of the department. Clientsofthedepartmenthavealsobeenissuedwithvisitor tags and allocated a spacious waiting area at theHeadOfficepriortoconsultation.
Openness and Transparency
Road plans are published in the departmental documents like the AnnualPerformancePlan,MEC’sBudgetand Policy Speech in thewebsiteandMECand HoD consultative sessions.
Continueprovidinginformation through thewebsite,MEC/HoD consultative sessions and external flyers;duringRoadForums and through Regional Directors and District Road Engineers at District Municipality level.
The departmental website and Intranet are continuously updated with current information and events of various programmes including roads maintenance. Tender adverts on roads maintenance are published on the website, various newspapersand departmental notice boards to ensure transparency on trading opportunities provided by the Department.
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Current arrangement Desired arrangement Actual achievement
Redress
Thedepartment,throughroadforums,consults the affected communities to offer an apology and full explanation and commit to rectify the situation.
Thedepartment,throughroadforums,consults the affected communities to offer an apology and full explanation and commit to rectify the situation.
The organogram of the department and the customer services charter are attached to the website to show managers responsible for each programme and also the line of escalation should our clients get dissatisfactory services. The department is making a concerted effort to address road related challenges through one-on-one engagements, roads forumsandalsothroughpaymentofroaduser’sdamages.
Value for money
The department has mapped business processes in order todefineandmaximise value as perceived by citizens; ensure that services areaccessible,appropriate,andadequatetocitizens’needs and that waste and unnecessary expenditure,andprocedure are eliminated.
The department has mapped business processes in order todefineandmaximise value as perceived by citizens; ensure that services areaccessible,appropriate,andadequatetocitizens’needs and that waste and unnecessary expenditure,andprocedure are eliminated.
Thedepartment isconstantlyassessingall three “Es”of value for money depicted below in all its roads maintenance services.
The procurement and in-house activities are assessed to ensure that the service is provided in an economical manner. The processes are mapped and standard operating procedures defined to identify unnecessaryprocesses so as to ensure the provision of this serviceinanefficientmannerandservicestandardsarevisibleinallregionalofficeentrances.The programmehas also adjusted and optimisedits maintenance strategy this year to perform more sustainable and effective maintenance activities like regravelling and blacktop patching.
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Key Service 2: Procurement of goods and service
Current arrangement Desired arrangement Actual achievement
Consultation
Demand Management unit constantly engaging the internal users and suppliers telephonically.
Demand Management unit constantly engaging the internal users and suppliers telephonically and through contractor conference annually.
Contractorandconsultantsengagementssessionswere held where information was shared in relations totheplansofthedepartment,theirconcernsandneeds were considered and resolutions were taken to ensure maintenance of mutual relations. AsupplierdaywasconductedbyProvincialTreasuryon behalf of all departments as a control measure to strengthen the communication between them and suppliers.
Access
Physically through itsoffices,throughtelephones,emails,NationalTreasuryDatabase,newspapersetc.
Physically through itsoffices,throughtelephones,emails,NTDatabase,newspapers etc.
Suppliers accessed the procurement services on a face to facebasisat theHeadOffice inBhishoandinallsixregionalofficesatMtAyliff,Mthatha,East London, Port Elizabeth, Queenstown andSterkspruit. The quotations and adverts for bids were alsoaccessible through notice boards, emails,departmentalwebsite,tenderbulletin,e-portalandi-tender.
Courtesy
The departmental front line personnel has been trained on the Batho Pele Principles and on how to deal with stakeholders.
To continuously train departmental personnel.
Suppliers have engaged with courteous DRPW Supply Chain officials or their supervisors and managersin Regions and at Head Office as well as front-linecustomercareofficialsatHeadOffice.Alltheseofficialshave been provided with name tags to ensure ease of identificationshoulddissatisfactoryservicebereceivedbyourcustomers.Clientsofthedepartmenthavealsobeen issued with visitor tags and allocated a spacious waitingareaattheHeadOfficepriortheconsultation.
Openness and Transparency
Beneficiariesaccessthe department physicallyHeadofficesandregionalitsoffices,throughtelephones,emails,NationalTreasuryDatabase,newspapers etc.
Beneficiariesaccessthe department physicallyHeadofficesandregionalitsoffices,throughtelephones,emails,NationalTreasuryDatabase,newspapers etc.
Briefing sessions are held for all advertised bids toclarify requirementsandensure that ourprocurementprocesses are fair, open and transparent to all. Thedepartment also informs unsuccessful bidders in writing.
Redress
The process of redress is through customer complaint handle system that is managed by fully fledgedcustomercareunit.
The process of redress is through customer complaint handle system that is managed by fully fledgedcustomercareunit and Management of existing suggestion boxes through the appointment of complaints management committee.
The redress is done through a customer complaints handling system that is managed by the CustomersCareUnit.
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Current arrangement Desired arrangement Actual achievement
Value for money
The department has mapped business processes in order todefineandmaximise value as perceived by citizens; ensure that services areaccessible,appropriate,andadequatetocitizens’needs and that waste and unnecessary expenditure,andprocedure are eliminated.
Additionaltothe current year arrangements the DRPW is also comparing full cost of goods and services charged in our procurement with various guidelines on transversal agreements and term contractswithinDPSA(consultantfees),NT(consumables-CFO),SITA(ITrelatedgoodsandservices)beforeadecision to procure is taken.
Thedepartment isconstantlyassessingall three “Es”ofvalue formoney inall itsprocurement.Allbidsareassessed to ensure that the service will be provided in an economical manner. The processes are mapped andstandardoperatingproceduresdefined to identifyunnecessary processes so as to ensure the provision of thisserviceinanefficientmanner.Theprogrammehasalsocapacitated theSCMfunction toensureeffectiveand timeous provision of this service.
Key Service 3: Hiring and Letting accommodation
Current arrangement Desired arrangement Actual achievement
Consultation
Property summits annualandquarterlyImbizo.
Property summits and Imbizo and constant monthly meeting with tenants.
The department is currently engaging with user departments for office space through user forummeetings,bilateralmeetingsandquarterlymeetings.
Access
The application of Lease accommodation is done through the officetheHOD.
The application of Lease accommodation is done through the officetheHOD.
The provision of leased accommodation services is currentlyaccessedattheHeadOfficeinBhisho.
Courtesy
Adepartmentalfrontline personnel has been trained on the Batho Pele Principles and on how to deal with stakeholders.
To continuously train departmental personnel.
Clientdepartmentsand tenantshaveengagedwithcourteous DRPW Property Management staff and front-linecustomercareofficialsatHeadOffice.Alltheseofficialshavebeenprovidedwithnametagstoensureeaseofidentificationshoulddissatisfactoryservice be received by our clients.Clientsofthedepartmenthavealsobeenissuedwithvisitor tags and allocated a spacious waiting area at theHeadOfficepriortoconsultation.
Openness and Transparency
The application of Lease accommodation is done through the officetheHOD.
The application of Lease accommodation is done through the officetheHOD.
The department is currently engaging with user departments for office space through user forummeetings,bilateralmeetingsandquarterlymeetings.
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Current arrangement Desired arrangement Actual achievement
Redress
Redress is done through customer complaint handle system that is managed by a fully-fledgedcustomercareunit.
Additionaltothe current year arrangements theComplaintsManagement Committeeisalsomanaging the existing suggestion boxes.
Redress is done through customer complaint handling system.The management of existing suggestion boxes through the appointment of complaints management committeeismanagedbythefullyfledgedcustomercare unit.
Value for money
The department has mapped business processes in order todefineandmaximise value as perceived by citizens; ensure that services areaccessible,appropriate,andadequatetocitizens’needs and that waste and unnecessary expenditure,andprocedure are eliminated.
The department has mapped business processes in order todefineandmaximise value as perceived by citizens; ensure that services areaccessible,appropriate,andadequatetocitizens’needs and that waste and unnecessary expenditure,andprocedure are eliminated.
The department is constantly assessing all three “Es”ofvalue formoney inall itshiringand lettingservices. The procurement and in-house activities are assessed to ensure that the service is provided in an economical manner. The processes are mapped and standard operating procedures defined to identify unnecessaryprocesses so as to ensure the provision of this serviceinanefficientandeffectivemanner.The department is also implementing various other activities to derive value for money like reviewing andimplementingnewspacenormsandstandards,implementing market-related rentals and developing a revenue strategy.
2.2.4 Service Delivery Information Tool:
Current/ actual arrangements
Desired arrangements
Actual achievements
Information is disseminated through exhibitions,publicservice month celebrations and the customer care information desk.
Regions to participate moreinExhibitions,Public Service Month and have more information on the information desk.
Department has participated on career expos and in Intergovernmental activities to provide more information on itsservicesandrespondtoenquiries.Participationincluded Buffalo City College career expo, Office ofthe Premier Youth Summit, internal departmentalevents. The Department held its Public Service Month celebrationinAmatholedistrict.
2.2.5 Complaints mechanism
Current/ actual complaints mechanism
Desired complaints mechanism
Actual achievements
Complaintsarereceive through the presidentialhotline,DRPWhotline,walk-ins,electronicallyandforwarded to relevant sections and regions for a speedy response.
-Complaintshandling•procedure to be displayed within the Department.-ApprovedCustomer•Carepolicyreflectingcomplaints handling to be circulated.-Suggestion boxes in •allDRPWoffices.
Allcomplaintsreceivedthroughthepresidentialhotline,DRPWhotline,walk-insandelectronicallyareescalatedto the relevant head of programmes and regions. The Departmentachieved90%against80%responseratetargetsetbyOfficeofthePremier.Thedepartmenthas,in the past 12 months, ventured on social networksspecifically facebook. Currently the department hasmore than 6000 followers and engaging citizens on a daily basis.
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2.2.6 Organisational Environment
Initsendeavourtoaligntothenationalpriorityofcreatingatransformedpublicservicewhichisrepresentative,coherent, transparent, efficient, effective, accountable and responsive to the needs of its citizens; theDepartmentofRoadsandPublicWorkshascommitted tobecomingmoreeffective,operationallyefficientandprudentincarryingoutitsmandatethroughbetteruseofitshuman,financialandtechnologyresources.However,theorganisationalenvironmentoftheDRPWcontinuedtoremainastrategicchallengeandposedamajorconstrainttotheperformanceofthedepartmentagainstitsStrategicPlanandAnnualPerformancePlan.
Thefirststrategicchallenge,inrelationtotheorganisationalenvironment,wastheissueoftheineffectivenessofthecurrentorganisationaldesign.Thisineffectivenessisevidentintheinsufficiencyofcapacityinthecurrentorganisationalstructureitselfandthewaythedepartmentalresourcesareconfiguredanddeployedinresponseto the environment in which it operates. The organisational structure that accommodated the roads function thatwastransferredfromtheDepartmentofTransportin2009wasonlyapprovedin2016/17.Effectively,thedepartmentfunctionedformorethan10yearswithanorganisationalstructure,whichwasapprovedin2006,although components and posts were added over time.
The most fundamental issue was that failure to revise the establishment created a misalignment with the strategicthrustofgovernment,whichintroducedanoutcomes-drivenapproachtostrategy.TheInfrastructureDeliveryManagementSystem(IDMS)initiativebyNationalTreasuryandNationalDepartmentofPublicWorksfurthercompoundedtheissueofstrategicandoperationalmisalignment.Tomitigateagainstthischallenge,thedepartment,duringthecourseof2015and2016,hasembarkedinaprocessofdevelopingitsServiceDeliveryModel(SDM),whichwaslaterapprovedinDecember2016.
Thismodelseekstorefinethedefinitionofthedepartment’smandateandtoclearlyarticulatethefunctionsandservicestobedeliveredbythedepartment,howitshoulddelivertheseservices,specificmodesofdeliveryincludingpartnershipsandtheresourcesrequiredtodeliverthoseservices.ThisnewSDMprovidedagoodfoundation for the revised organisational design process that the department has also started in the year under review.
Thedepartmentcommencedwiththematchingandplacingexerciseonlyduringthelasthalfofthefinancialyearunder review following the approval of the 2009 structure. The delay in this exercise also affected the approval of the 2016/17AnnualRecruitmentPlan (ARP), resulting in limited capacitation in critical service deliveryareas of the department. The capacity constraints were further exacerbated by the loss of key personnel in the FinanceandICTspace,lossofcontractworkersresultingindestabilisationofrecentlycapacitatedfunctionslikeInternalControlandConstructionProcurement,lossofinternsthatwereassistingtofillthecapacitygapsand a moratorium placed on appointment of posts vacated through natural attrition.
All these factorscontributed towardsdestabilising theorganisationalenvironment inwhich thedepartmentoperated. The Department of Roads and Public Works has also been beset by the vacancy rate of Regional DirectorsinthefollowingRegions,AlfredNzo,(incapacityleaveforalongperiod),ChrisHani(transferredtoHeadOffice)andSarahBaartman(retirement).TheDepartmenthassincefilledthosevacanciesbyappointingpermanentRegionalDirectorsduringthecourseofthefinancialyear.
In spite of these challenges skills development remained the cornerstone of our efforts to build sustainable capacity.Thedepartmentcontinuedtoinvestinouryouththroughitsbursaryscheme,whichhasseen112bursariesawardedin2016/17,210graduateinternsand100TVETlearnerscontracted.Theskillsdeveloped
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throughthebursaryscheme,trainingofinternsandTVETcollegelearnerscreatedthemuch-neededcapacitythat can progressively be integrated into the permanent institutional arrangements of the department. Efforts to build capacity included assisting these learners to achieve professional registration once their studies are complete and have undergone training.
The focus was also placed on ensuring that personal development plans developed during the contracting processwithemployeesfindexpressionintheWorkplaceSkillsPlanandimplementeddiligentlywithoutcomesbeing monitored for effectiveness.
The strengthening of the internal control environment in the department was given a boost in the last year by the introduction of a number of controls and revisions to the existing ones. These included revisions to the SupplyChainbusinessprocesses,approvalofamethodologytoconductinvestigationsforcasesofirregular,fruitlessandwastefulexpenditure,theapprovaloftheinfrastructureprocurementstrategy,therevisionstothePFMAdelegationsandtheadoptionofanewservicedeliverymodelforthedepartment.
The department is determined in ensuring that these sweeping revisions to the internal control environment willyieldvisible results from thebeginningof the2017/18financialyear.These improvementswillalsobestrengthenedbytheimplementationofanHRStrategythatiscurrentlyasubjectofconsultationwithorganizedlabour. The department investigated cases of irregular expenditure from prior years. The results of these investigationswillbethatnolessthan10officialswillbesubjectedtodisciplinaryactionfortheirroleinincurringirregular expenditure. We are pleased to report that internal capacity to undertake these investigations has been institutionalized through theestablishmentofacomplianceunitwithin InternalControl,whichwill beresponsible for undertaking such investigations to ensure those responsible are held to account.
Theemploymentequityhasalwaysbeenasensibleonebasedontheneedtobalancetheneedtoincreasethe numbers of designated groups, while ensuring that training and ongoing support are part of themixof interventions. We are happy to report that we have managed to raise the number of women in Senior ManagementService(SMS)from34%to39%.Similarly,peoplewithdisabilitiesconstitute1.6%ofthetotalworkforce of the department.
InordertofulfilitsmandateofbeingahubandnervecentreforthedeliveryofInfrastructureintheProvince,the department has commenced with the development of an Infrastructure Delivery Management System (IDMS)alignedprojectmanagementsystemthatwillenabledepartmentalprojectmanagersandmanagementtotrackandmonitortheperformanceandexpenditureofallDRPWprojects.
ThedepartmentiscontinuouslytestingefficiencyandeffectivenessofitsoperationalenvironmentusingavarietyofassessmenttoolkitslikeManagementPerformanceAssessmentTool(MPAT),OrganisationalFunctionalityAssessment(OFA),ControlObjectivesforInformationandRelatedTechnologies(COBIT5)thatareadoptedas government-wide best practice assessment methods for outcome 12. The results of these assessments assisttohighlighttheleveloffunctionality,capacitychallenges,strengthsandimprovementopportunitiesforthedepartment.GenerallythefindingsfromtheseassessmentsreflectimprovedmanagementtrendswithinDRPW,insomeinstancesincomparisonwiththesectorbroadlyandtheprovince.
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2.3 KEY POLICY DEVELOPMENTS AND LEGISLATIVE CHANGES
There were no key policy developments or legislative changes that had a bearing on the mandate of the department in the period under review.
2.4 STRATEGIC OUTCOME-ORIENTED GOALS
Theoutcomes in relation to theNational andProvincialDevelopmentPlan (NDPandPDP) towhich theDepartment is contributing, as well as achievements and progressmade towards the attainment of five-year targets in line with the strategic outcome-oriented goals as per the 2015/16 -2019/20 Strategic Plan are articulated below.
Strategic Outcome Oriented Goal 1
EffectiveandEfficientadministrativecapacityfullyresponsivetothedepartment’s mandate by 2020.
Links to National Outcomes and NDP.
Outcome 12 (NDP Chapter 13): Generate an efficient, effective anddevelopmentorientedpublicserviceandanempowered,fairandinclusivecitizenship;Outcome5(NDPChapter9):Developaskilledandcapableworkforcetosupport an inclusive growth path.
Links to Provincial Priorities and PDP.
PDP Strategic Goal 5: Capable, conscientious and accountableinstitutions.P-MTSFPRIORITY7:GoodGovernanceStrengtheningtheDevelopmentalStateandGoodGovernance.PDPStrategicGoal2:Aneducated,empoweredandinnovativecitizenryPMTSFPRIORITY3:Education:PromotingQualityEducationandSkillsDevelopment.
In line with the NDPOutcome 12 and the PDP strategic goal of developing capable, conscientious andaccountablepublicserviceinstitutions,DRPWdecidedtofocus,duringthis5-yearstrategycycle,onbecomingmoreeffective,operationallyefficientandprudentincarryingoutitsmandatethroughbetteruseofitshuman,financialandtechnologicalresources.Successwouldbedemonstratedbyattainingahighestlevelscore,level4intheManagementPerformanceAssessmentTool(MPAT)whichisagovernment-widetoolusedtoassessefficiencyandeffectivenessofpublicservicesinlinewith,amongstothers,compliancetolegislationgoverningpublic service.
Inthetwoyearsofthecurrentstrategycycle,DRPWmadestridestocomeveryclosetoachievingthis2020goalbymaintainingalevel3averagescore.However,sincethetoplevelofassessmentislevel4,itmeansthere is still room for improvement towards best practice. The department prides itself on pockets of excellence in some of the standards assessed through this tool including functioning of the departmental Strategic Managementpractices,AuditCommittee,InternalAudit,RiskManagement,FraudPrevention,ManagementofEmployeeHealthandWellness,AcquisitionManagement,ManagementofCashFlowandexpenditurevs.budgetandPFMADelegations.
The department is taking governance and systems of accountability very seriously, both as a means ofstrengthening its internal control mechanisms and ensuring accountability to citizens and oversight bodies.EngagementandreportingtooversightbodiessuchastheAuditCommittee,RiskandEthicsManagementCommittee,ICTGovernanceCommittee,PortfolioCommitteeandSCOPAhasimprovedtremendously.Theimprovement in the management of the department is evidence of the scrutiny and support provided by these institutions.Adeliberateeffort tocontinuouslystrengthen thecontrolenvironmentespecially in theareaoffinancialmanagementhasstillbeenamainsourceoffocusduringtheyearunderreview.
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Anumberofgoodfinancialmanagementtoolslikepolicies,processes,procedures,circulars,templatesetc.were revised and communicated to all employees to ensure consistent implementation.
Another focusareafor thedepartmentduring thisreportingperiodwason improvingoperationalefficiencyin carrying out the mandate coupled with tackling the long vexing limitation in human resource capacity. To this end, theExecutiveAuthority of the department has, inDecember 2016, approved aServiceDeliveryModel (SDM) that serves as a blueprint on the finer interpretation ofRoads andPublicWork’s custodianof immovableassets, infrastructurenervecentreandsocio-economic transformationalmandateaswellashow the department envisages rendering its services. The new SDM also adopts a digital transformational approachofleveragingontechnologytoenableefficienciesindepartmentaloperations.
Togiveeffecttothisenvisageddigitaltransformation,thedepartmenthasalsoapproveda5yearICTStrategyduringthisreportingperiod.TheprimaryobjectiveofthestrategyistoalignICToperationsandinvestmentspending to strategic goals and direction of the department. These are all positive efforts towards attaining thestrategicpriorityarticulatedinthe5-yearstrategynamely,“Tostriveforoperationalexcellenceinordertoensureresponsiveness,efficiencyinexecutionofoperations,goodgovernanceandcleanadministration”.
In themanagementofhumanresources, thedepartmenthasaccomplishedsuccess inanumberofareasthat were previously challenging. It has attained a long-awaited approval for an organizational structure that encompasses both Roads and Public Works functions. It is currently implementing that structure, whilstconcurrently undertaking an organisational redesign exercise that will shift the department towards strategic andoperationalalignmentofhumanand technical resources, in line,notonlywithstrategiesarticulated intherecentlyapprovedSDM,butalsowithbestpracticeandwithgenericfunctionalconfigurationguidelinesprovidedbyDPSAandNationalTreasury.
Theoverallgoalistoprovideadequate,efficientandeffectiveorganisationalcapacitythatisfullyresponsivetothedepartment’smandateandstrategicprioritiesforthisstrategycycle.Acapacitythatwillprovidecompleteandefficientservicescoveringallaspectsofthedepartment’smandate.
Withthefollowingeffortsinplace,DRPWpridesitselfinpromotingqualityeducationandskillsdevelopmentand in its positive contribution to an educated, empowered and innovative citizenry as envisaged in theNDPandPDP.Ithasimplementedanumberofempowermentandemploymentinitiativeslikerecruiting210graduateinterns,appointing100TechnicalandVocationalEducationandTraining(TVET)learners,awarding50newbursariesandcontinuedtofinance the62previouslyawardedbursars,bringing it toa totalof112bursars.UnderacapableleadershipoftheOfficeoftheMEC,thedepartmentcontinuedtostrivetowardsadevelopmentorientedpublicserviceandanempowered,fair,inclusiveandactivecitizenrybyensuringthatthedepartmentaldecisionsareinformedbythewillofthepeopleespeciallyitsstakeholders.Initsquesttoensurethatthevoicesofstakeholders,likecontractorsandconsultantsareheardandtheirneedsimplementedbythedepartment,theofficeoftheMECsuccessfullyexecuteditsplannedtargetofstakeholderengagementsessions during the year under review.
On the overall, the department is on course towards the achievement of its five-year targets for thisprogramme.
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Strategic Outcome-oriented goal 2
Immovable assets management regime fully responsive to needs of provincial government and its socio-economic transformational agenda by 2020.
Links to National Outcomes and NDP.
Outcome6NDPChapter4:Supportanefficient,competitiveandresponsiveeconomic infrastructure network.
Links to Provincial Priorities and PDP.
PDPStrategicGoal1:Agrowing,inclusiveandequitableeconomyP-MTSFPRIORITY1:EconomyandJobs:Transformingtheeconomytocreatejobsandsustainablelivelihoods;PDP Strategic Goal 5: Capable, conscientious and accountableinstitutions;P-MTSFPRIORITY7:GoodGovernance:StrengtheningtheDevelopmentalStateandGoodGovernance;PDPStrategicGoal4:Vibrantequitablyenabledruralcommunities.
Encouraged by the fact that infrastructure delivery and property management is critical to sustaining economic developmentand tosupport theachievementofNDPandPDPgoalsoutlinedabove,DRPWcontinued toexecuteitsmandatetoactasanimplementingagentfortheclientdepartments(Health,Educationandotherdepartments)bybuildingnewclinics,schools,EarlyChildDevelopmentCentres(ECDCs),libraries,eradicatingmudsschoolsandprovidingofficeaccommodationintheprovince.
Thefollowingstrategicobjectivesprovideabreakdowntowardsattainmentoftheabove-mentionedstrategicgoal:
• Improveprojectmanagementcapacityinrelationtoinfrastructureco-ordination,planning,implementationandmaintenanceforDRPWandotherdepartmentsbycompleting100%ofprojects(new,rehabilitationandrefurbishment)withinagreedtimeperiodand90%ofprojectswithinapprovedbudgetby2019/2020.However,progressingtowardsthis5yeartargetthedepartmenthassetitselfatargetofcompleting70%ofprojectswithinagreedperiodandbudgetduringthe2016/17financialyear.Thefinancialcontrolsputbytheprogrammeprovedworthwhilebecause75%ofcapitalprojectswereachievedwithinbudget.Ontheotherhand,thedepartmentisstillstrugglingwiththeissueofpoorperformanceofemergingcontractorsdespite making concerted efforts to support and capacitate them. The non-achievement of the 2016/17 targetofdelivering70%ofprojectswithinagreedtimeisaproofofthischallenge.Duringtheyearunderreview, the achievement dropped even lower than the 2015/16 financial year to 55%. In the 2015/16financialyear,thetargetofdelivering60%withinagreedtimewassurpassedby7%.
• Includedamongsttheachievementsfortheyearunderreviewwere,amongstothers,thefollowingsocialinfrastructure improvements:
theupgradingofthreehealthfacilitiesnamely:CloeteJoubertHospitalBuilding,StPatrick’sHospitalandCalaCHCbuilding;
renovationsandmaintenanceofMosesMabidaandCathcartPublicLibrariesforDSRAC;erectionofsecurity fencingatBulelaniSSSintheChrisHaniDistrict,MfesaneSSS,AddoPrimary
School and David Livingston SSS at Sarah Baartman.
• Verifying10000(5-yeartarget)and3500assets(2016/17target)assetsintheassetregistertoensurethe complete, reliableandaccurate information in relation to theprovincial property portfolio by2020.The department continued to surpass its target again during the year under review by verifying 4 286 assets. This achievement implies considerable improvement in the overall management and recording of provincialassetsasrequiredintermsofthePublicFinanceManagementActandisfurtherpositioningthedepartment well in its role of being a reliable custodian of provincial assets.
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Thisispurportedbythevalue-addinginformationthatgotcapturedandverifiedintheImmovableAssetRegister(IAR),e.g.replacingallR1valuesintheIARwithmunicipalvaluation’saspertheCashModifiedGuide fromNationalTreasury thus assisting the government to disclose its assets at amore realisticvaluewhich,inturn,contributetopositivenationalcreditratings;theupdatingofthetenureandlanduseinformationobtainedthroughlandauditsandsiteinspections.AllofthisinformationtakestheIARalongway towards being a reliable platform for immovable asset planning in the province.
• Ensuringtheeffectiveandefficientuseof theprovincialpropertyportfolio to facilitate theattainmentofservicedeliveryandsocio-economicobjectivesbyidentifyingatleast20propertiesforrevenuegenerationpurposesby2020and10by2016/17.Thistargethasbeenexceededthroughidentificationoftwo(2)moreproperties.Thesearepropertieswithpotentialhigh-incomevalue,whichcangeneraterevenuefortheProvince.Thesepropertieswerefullyevaluatedandanexpressionofinterestwaspublishedforfive(5)ofthem. The department commenced with the release of assets under land restitution claims which include the Dwesa and Double Drift nature reserves.
Strategic Outcome-oriented goal 3
Anefficientandintegratedroadnetworkthatservesasacatalystforsocial and economic development underpinned by improved rural access by 2020.
Links to National Outcomes and NDP.
Outcome6NDPChapter4:Supportanefficient,competitiveandresponsiveeconomic infrastructure network;Outcome 8NDPChapter 8:Create sustainable human settlements andimprovedqualityofhouseholdlife.
Links to Provincial Priorities and PDP.
PDPStrategicGoal1:Agrowing,inclusiveandequitableeconomyP-MTSFPRIORITY1:ECONOMYANDJOBS:Transformingtheeconomytocreatejobsandsustainablelivelihoods;PDPStrategicGoal4:Vibrantequitablyenabledruralcommunities;P-MTSFPRIORITY6:SOCIALCOHESION:Integratedhumansettlementand building cohesive communities.
TheDRPWisresponsibleforthemaintenanceoftheprovincialroadnetworkproclaimedundertheformerCapeProvincialAdministration,togetherwithanumberofroadsfromtheformerTranskeiandCiskeiGovernments.The current provincial road network which amounts to 41 316 km comprises of approximately 4 223 km of provincialsurfacedroadsand37092kmofgravelprovincialroads,stormwaterstructuresandbridges;allroad furniturewithin theroadreserve(fencing,signage,kmmarkers,etc.) Inaddition to theroadnetwork,thereareahost of quarries / borrowpits, campsanddepots andauxiliary structures,manyofwhicharelocatedoutsideoftheroadreserve,butwhichalsoformpartoftheprovincialroadassetsthatarewithinthedepartment’scustodianship.
Themajoraimoftheprogrammeistoensurethattheprovincehasanefficientandintegratedroadnetworkthat serves as a catalyst for social and economic development underpinned by improved rural access. This functionisco-sourcedandisperformedinconjunctionandcollaborationwithnationalroadsagencies,districtand localmunicipalities.Both theNDPand thePDPconsiders infrastructureas the cornerstoneof socio-economicdevelopment,moreso in theEasternCapeProvince,which is70%rural,withdefining featuresmarkedbyinfrastructureunderdevelopment,highlevelsofpovertyandunemployment.
Withintheconstraintsoftheresourcesallocatedtotheprogramme,itmanagedtoachieve64%ofitstargetsintermsofnetworkplanning,constructionandmaintenanceofprovinciallyproclaimedroadsutilising99%ofits budget.
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In relation to network planning the department planned to visually assess the entire 4 223 km of its surfaced road network. However, it managed to assess 3 781.29 km because 436.98 km of paved road networkwastransferredtoSANRALinJune2016.Thisassessmentprovidesvaluableinformationinrelationtotherequirementsforthemaintenanceoftheprovincialroadnetwork.Todatetheprogrammehasachieved43%ofits 5 year target of upgrading 97.5 km of gravel roads to surface roads.
Thisworkreflectasignificantcontributiontothenationalandprovincialaspirationsofprovidingequalaccessfor rural communities in that, the 10km construction fromCentane toQholorha afforded easy access toa totalnumberof54villages,5clinics,schoolsandanumberofothersocialamenities.Furthermore, thisconstruction,togetherwiththe12.4kmsconstructedintheTsolwanaMunicipalareaopenedupopportunitiesforprovincialeconomicdevelopment,astheseareasarerenownedashubsfortourism.Eventhoughthisisacommendableachievement,thepercentageofprovincialsurfacedroadnetworkremainsfarbehindthatofthe entire country.
Inthefirsttwoyearsofthe5yearstrategycyclethedepartmenthasmaintained281278.61m2 of provincial roads. This number included 217 261 m2 maintained in 2015/16 and 64 017.61 m2 achieved during the year under review.Eventhoughtheperformanceofthisreportingperiodfellshortofwhatwasdesired,thedepartmentismakingsignificantprogresstowardstheattainmentofits5-yearstrategicgoaltarget.Ofsignificantimportanceis that thesemaintenanceprojectsutilised labour intensivemethodsbyemploying localcommunities, thusalleviatingpovertyandensuringimprovedqualityofhouseholdlifeamongstruralcommunities.Thisisalsoapositivesteptowardsgrowinginclusiveandequitableopportunities,especiallyforthepreviouslydisadvantagedrural areas.
Initsdrivetoreducethescourgesofunemploymentandpoverty,theDepartmentiscontinuouslyaligningitselftotheNationalandProvincialprioritiesandtheProvince’sjobcreationstrategyandendeavoursasfollows:
Strategic Outcome-oriented goal 4
Sustainable livelihoods through empowered communities and emancipated emerging construction contractors underpinned by sustainable job opportunities and economic growth by 2020.
Links to National Outcomes and NDP.
Outcome4NDPChapter3:Decentemploymentthroughinclusiveeconomicgrowth;Outcome5NDPChapter9:Developaskilledandcapableworkforce tosupport an inclusive growth path.
Links to Provincial Priorities and PDP.
PDPStrategicGoal1:Agrowing,inclusiveandequitableeconomyP-MTSFPRIORITY1:ECONOMYANDJOBS:Transformingtheeconomytocreatejobsandsustainablelivelihoods;PDPStrategicGoal2:AnEducatedempoweredandinnovativecitizenry;P-MTSF PRIORITY 1: EDUCATION: Promoting Quality Education andSkills Development.
Asaresultofthis,thedepartmentisforgingaheadwithitscreationofjobopportunitiesthroughtheExpandedPublicWorksProgramme(EPWP)particularlythemassiveemploymentofhouseholdcontractors,upgradingofcontractorsaspertheConstructionIndustryDevelopmentProgramme(CIDB)andconstantlyemployinglabour-intensivemethodsintheprovisionofjobstotheprovinciallabourforce.
AspertheQuarterlyLabourForceSurvey,Quarter3,2016issuedbyStatisticsSouthAfrica,theprovince’sunemploymentratehasdeclinedby1.6percentagepointyearonyearfrom27.1%inJuly-September2015to25.5%inJuly-September2016.
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AmongsttheMetrosthatrecordedthelargestdecreasesinunemploymentrateswastheBuffaloCityMetro,which showed the largest decline of 1.8 percentage points. It is our belief that the growth in the number of jobopportunitiescreatedbytheDepartmentyearonyear,supportedbyother jobcreationinitiativesoftheprovince,hasgonealongwayindecreasingtheunemploymentrateintheprovince.
Toachievethisstrategicgoal,theprogrammehasbrokenitdowntothefollowingobjectives:
• To bring about the development and empowerment of impoverished community through the creation of 48 300 work opportunities by 2020. The programme has already surpassed this years 5 year target in two yearsbycreating54479workopportunitiesinthe2016/17financialyear,ofwhich21692areFullTimeEquivalents(FTE’s).Thisoverachievementwasduetomoreworkopportunitiescreatedbythedepartmentthrough labour-intensive Infrastructure projects and replacement of household contractors that haveresigned or deceased.
• To develop 300 contractors and provide skills through 25 empowerment intervention by 2019/20. To date, thedepartment hasdeveloped222 contractors through its IntegratedConstructionDevelopmentProgramme.Furthermore,thedepartmentplannedtoprovideskillsto6500beneficiariesthroughfour(4)beneficiaryempowerment interventions.Whileall four (4)beneficiaryempowerment interventionswereexecuted,only1923beneficiariesweretrainedduetofinancialpressuresexperiencedbytheprogrammeduringthe2016/17financialyear.
• Promoting the implementationof10 labour intensive initiativesby2020witha targetof four (4) in the2016/17financialyear.Thedepartmentsurpassedthistargetbyidentifyingone(1)morelabourintensiveinitiative during the year under review.
• Lastly, the department fully achieved its strategic objective of promoting, integrating, coordinating andmonitoringtheimplementationofEPWPphase3throughimplementationofallseven(7)interventionstosupport public bodies and by ensuring that all 56 public bodies are reporting on the EPWP reporting system. However,duetotheamalgamationofmunicipalitiesfollowingthelocalgovernmentelections,publicbodiesreportingonEPWPwerereducedfrom56to50.Despitethattechnicality,all50publicbodiescontinuedtoreport on EPWP. The local government elections also disrupted the convening of roads forums because changes in the political leadership at local government level negatively affected the sitting of roads forum meetings.
Inas farasprovincial contribution towardsnational performance targets, theEasternCape is the leadingprovince with regards to creation of work opportunities created during the 2016/17 financial year. Workopportunities created by the province including the contributions from national departments with a presence in theprovinceare143198againstthetargetof99417(whichtranslatesto144%performanceagainstthesettarget).
The table below depicts the number of work opportunities created per sphere of government per sector. Provincialdepartmentscontributed thehighestnumberofworkopportunities, followedby thenationalandthen by local municipalities.
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Sector performance per sphere of government
Sector Municipal Provincial National Total
Infrastructure 14 552 51 303 655 66 510
Social 1 801 12 394 1 166 15 361
Environment 7 706 3 666 21 039 32 411
Non-State - - 28 916 28 916
Totals 24 059 67 363 51 776 143 198
Inrespectofdemographiccategories,EPWPintheprovincehassurpassedthetargetforwomenparticipatingin job creation initiatives. However, the challenge remains that of attracting the youth and people withdisabilities.
Demographic category Target % Work opportunities reported
% achieved
Youth 55% 53 803 38%
Women 55% 92 217 65%
People with Disabilities 2% 2 515 1.8%
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2.5 PERFORMANCE INFORMATION BY PROGRAMME
2.5.1. Programme 1: Administration
A. Purpose
Toprovideleadership,administrative,strategic,financialandcorporatesupportservicestothecoreprogrammesofthedepartment inordertoensurethat itdeliversonitsmandateinanintegrated,efficient,effectiveandsustainable manner.
B. Sub-Programmes of Programme 1
• OfficeoftheMEC
• Management of the department
• CorporateSupport
C. Strategic Objectives for 2016/17
1.1. To maintain an effective and efficient administrative system that supports political leadership andoversightbyobtainingLevel4scoreonMPATby2019/20.
1.2. To ensure effective and sustainable management of departmental resources to attain clean administration of the department by 2019/20.
D. Strategic objectives, performance indicators, planned targets and actual achievements
Strategic Objectives for Programme 1: Administration
Programme 1: Administration
Strategic Objective Actual 2015/16
Planned Target 2016/17
Actual 2016/17
Deviation Comments on deviations
1.1. To maintain an effectiveandefficientadministrative system that supports political leadership and oversight by obtaining Level 4 scoreonMPATby2019/20.
17 16 outreach programmes undertaken.
16 N/A N/A
3 MPATscoreof 3.
3 N/A N/A
1.2. To ensure effective and sustainable management of departmental resources to attain clean administration of the department by 2019/20.
UnqualifiedAuditOpinion.
1 (UnqualifiedAuditOpinion).
UnqualifiedAuditOpinion.
N/A N/A
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Performance Indicators for Programme 1: Administration
Performance Indicator Actual 2015/16
Planned Target 2016/17
Actual 2016/17
Deviation Comment on deviations
StrategicObjective:1.1Tomaintainaneffectiveandefficientadministrativesystemthatsupportspolitical leadership and oversight by obtaining Level 4 score on MPAT by 2019/20.
Numberofoutreachprogrammes undertaken byMEC.
17 16 16 N/A N/A
AnimprovedMPATmoderated average score onGovernanceandAccountabilityKPAforthepreviousfinancialyear.
3 4 3 -1 The under-achievement was due to the low scores attained in the implementation ofPAJAandPAIAaswell as the Service delivery Improvement Mechanisms standards.
AnimprovedMPATmoderated average score on Strategic Management KPAforthepreviousfinancial.
4 4 3.5 -0.5 The under-achievement was due to the low scores attained in the Integration of monitoring and strategic management and integration of evaluation and strategic management standards.
AnimprovedMPATmoderated average score on Human Resource ManagementKPAforthepreviousfinancial.
2 3 2.5 -0.5 The under-achievement was due to the low scores attainedinnine(9)outof eleven standards. These include standards relating to management ofperformance,Organisational Design andPlanning,HumanResource Practices andAdministrationand management of disciplinary cases.
AnimprovedMPATmoderated average score on Financial Management KPAforthepreviousfinancial.
3 3 3 N/A N/A
Strategic Objective: 1.2 To ensure effective and sustainable management of departmental resources to attain clean administration by 2019/20.
Anunqualifiedauditoutcome.
Unquali-fiedAuditOpinion.
1(Un-qualifiedAuditOpinion).
Unquali-fiedAuditOpinion.
N/A N/A
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Performance Indicator Actual 2015/16
Planned Target 2016/17
Actual 2016/17
Deviation Comment on deviations
Improved maturity level score of Departmental ICTgovernancebasedonCOBIT5priorityareasstatedtheCorporateGovernanceofITFramework.
1 1 1 N/A N/A
E. Summary of Programme Performance
Thedepartmentachieved92%ofitsplannedtargetsinthisprogramme.Althoughthedepartmentfellshortofattainingitsannualtargetofanaverageof3.5,maintaininganaveragescoreofthree(3)inthemoderatedresultsofManagementPerformanceAssessmentTool(MPAT)version1.6conductedbytheDepartmentofPlanning,MonitoringandEvaluation(DPME)isstillanindicationthatthemanagementpracticesandcontrolsof the department are maturing. This level 3 score in the second year of a 5-year strategy cycle that has a target of an average score of level 4 also implies that the department is progressing comfortably towards a stateofefficiencyandachievingitsfifthyeartarget.
The department continues to show commitment towards being a development-oriented public service that affordsitsstakeholdersopportunitiestobeactive,heardandempowered.TheMEC’sofficehasundertakenoutreach programmes to communicate government programmes to the public and strengthen relations with stakeholders.Theachievementsreflectsuccessinattainingtheplannedtargetsinthe1ststrategicobjectivenamely “Tomaintain aneffectiveandefficient administrative system that supports political leadership andoversight”.
Inrelationtothesecondstrategicobjectivethedepartmentprovedtobeoncoursetowardscleanadministrationwhen it attained an unqualified audit opinion in the previous financial year.Major challenges in this areaemanatedfromdeficienciesinthecontrolenvironmentespeciallyinthesupplychainpracticesofthedepartmentas well as reliability and completeness of records to substantiate departmental transactions.
F. Strategy to overcome areas of under-performance
Tocontinuouslyimprovetowardsthedesiredstateofbeingacapablesupporterandenabler,theprogrammeispullingall stops tostrengthen its controlenvironment.Policies,businessprocesses, standardoperatingproceduresandothermechanisms toclose thegaps identified in theassessmentsconductedbyboth theAuditor-GeneralofSouthAfrica(AGSA)andDepartmentofPlanningMonitoringandEvaluationhavebeenapproved and implemented. The department still needs to strengthen implementation of strict monitoring adherencetothesemechanismsandimplementationofconsequencesincasesofnon-compliance.Ofcourse,theseeffortsarereceivingtheunwaveringsupportofgovernancestructuressuchastheAudit,RiskandEthicsaswellasPortfolioCommittees.
Thedepartmentwillalsofocusonsupportingspecialprojectsprioritisedtoturnarounditsefficiency,effectivenessandperformancewhilstatthesametimemanagingriskareas.Suchspecialprojectsinclude,amongstothersautomationofbusinessprocessesinareasofprocurement,reporting,managementofprojectsandrecords.
The department is also in a process of building its capacity to support delivery of the mandate both in terms of
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anumberofwarmbodiesanddevelopmentofskillsincriticalareas.AstructurethatwillcloselyenableDRPWtofullyimplementitsmandatehasbeenapprovedbyDPSA.
Focus of the corporate support function will be implementation of the structure to ensure that the department hasaneffectiveandefficientadministrativecapacitythatisfullyresponsivetothedepartment’smandate.
G. Changes to planned targets
There were no changes to the planned targets during the reporting period
H. Linking Budget with Performance
Sub-Programme Name
2016/17 2015/16
Final Appro-priation
Actual Expenditure
(Over)/Under
Expenditure
Final Appro-priation
Actual Expenditure
(Over)/Under
Expenditure R’000 R’000 R’000 R’000 R’000 R’000
1.1 OfficeoftheMEC 9 047 9 047 - 9 181 9 181 - 1.2 Management 29 016 29 016 - 16 148 16 148 - 1.3 CorporateSupport 532 049 523 667 8 382 496 551 486 962 9 589 Total 570 112 561 730 8 382 521 880 512 291 9 589
Theprogrammehasrecordedatotalexpenditureof98%ofitsallocatedbudget.Therecordedunderexpenditurewasduetothedeliveryofincorrectlaptopsthatwerenotasperthespecificationissued,resultinginthereturnof those laptops to the service provider as the department could not process the invoice for payment of incorrect items delivered.
The department also procured services for the enhancement of the PROMIS system which is the integrated projectmanagementsystem.Anincorrectinvoicefortheservicesrenderedwasreceivedbythedepartment.The department could not process the incorrect invoice and it had to be returned to the service provider for correction.
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2.5.2 Programme 2: Public Works Infrastructure
A. Purpose
Toprovidespecialistservicestoclientdepartmentsintermsofbuildingandinfrastructureplanning,design,construction,managementandmaintenanceandtoplayan“implementingagent”roleforclientdepartmentsin relation to their individual building and infrastructure needs.
B. Sub-Programmes
• Programme Support• Design• Construction• Maintenance • ImmovableAssetManagement• Facility Operations
C. Strategic Objectives for 2016/17
Overall Programme Objectives
2.1. Toimproveprojectmanagementcapacityinrelationtoinfrastructureco-ordination,planning,implementationandmaintenanceforDRPWandotherdepartmentsbycompleting100%ofprojects(new,rehabilitationandrefurbishment)withinagreedtimeperiodand90%ofprojectswithinapproved budget by 2019/2020.
2.2. Verify10000(5-yeartarget)assetsintheassetregistertoensurethecomplete,reliableandaccurate information in relation to the provincial property portfolio by 2020.
2.3. Aneffectiveandefficientuseoftheprovincialpropertyportfoliotofacilitatetheattainmentofservicedeliveryandsocio-economicobjectivesbyidentifyingatleast20propertiesforrevenuegenerationpurposes by 2020.
D. Strategic objectives, performance indicators, planned targets and actual achievements
Strategic Objectives for Programme 2: Public Works Infrastructure
Programme 2: Public Works Infrastructure
Strategic Objective Actual 2015/16
Planned Target 2016/17
Actual 2016/17
Deviations Comment on deviations
2.1. To improve projectmanagementcapacity in relation to infrastructure co-ordination,planning,implementation and maintenance for DRPW and other departments bycompleting100%ofprojects(new,rehabilitation and refurbishment)withinagreed time period and 90%ofprojectswithinapproved budget by 2019/2020.
67% 70%withinagreed period.
55% -15% Mostprojectwerenot completed on time due to poor performance of contractors.
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Programme 2: Public Works Infrastructure
Strategic Objective Actual 2015/16
Planned Target 2016/17
Actual 2016/17
Deviations Comment on deviations
The non-achievement of some targets did nothavefinancialimplications to the department as these contractors were put on penalties to transfer the risk of apotentialfinancialloss that could be incurred as a result of time lost from the department to the contractor.
87% 70%withinagreed budget.
75% +5% The controls put by the department in the management of projectsespeciallythe penalties imposed on poorly performing contractors resulted in improvement infinancialmanagement of mostprojects.The termination of contractors due to poor performance still remain a challenge.
2.2 Verify 10 000 (5-yeartarget)assetsin the asset register to ensurethecomplete,reliable and accurate information in relation to the provincial property portfolio by 2020.
3 622 3 500 assets verifiedinthe asset register.(**note)
4 286 +786 The over-achievement was based on the new vesting received from the Department of Rural Development and Land Reform (RDLR),newacquisitionsthrough Section 42 ofPFMAanddeedstransfer which were validated through the deeds download in May 2017.
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Programme 2: Public Works Infrastructure
Strategic Objective Actual 2015/16
Planned Target 2016/17
Actual 2016/17
Deviations Comment on deviations
2.3Aneffectiveandefficientuseoftheprovincial property portfolio to facilitate the attainment of service delivery and socio-economicobjectivesbyidentifying at least 20 properties for revenue generation purposes by 2020.
10 5 12 +7 • Five(5)properties were identifiedinthe previous financialyear.
• The over achievement of two properties is a result of vacant land in Sunningdale East London identifiedfor housing development which constituted land parcels or erven and therefore counted as 3 properties for revenue generation.
Performance Indicators for Programme 2: Public Works Infrastructure
Performance Indicator
Actual 2015/16
Annual Target 2016/17
Actual 2016/17
Deviations Comment on deviations
CUSTOMISED PERFORMANCE INDICATORS
PLANNING
Strategic Objective: 2.1 To improve project management capacity in relation to infrastructure co-ordination, planning, implementation and maintenance for DRPW and other departments by completing100%ofprojects(new,rehabilitationandrefurbishment)withinagreedtimeperiodand90%(*Note)ofprojectswithinapprovedbudgetby2019/2020.
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Performance Indicator
Actual 2015/16
Annual Target 2016/17
Actual 2016/17
Deviations Comment on deviations
CAMPsubmittedtothe relevant treasury in accordance with GIAMA.
1 1 1 0 N/A
DESIGN
Numberofinfrastructure designs ready for tender.
63 43 43 0 N/A
CONSTRUCTION
Numberofcapitalinfrastructureprojectscompleted within the agreed time period.
15 15 10 -5 The underachievement was due to the poor performance ofcontractors,whoweresubsequentlyput on penalties as a control measure to transfer the risk to contractors by deducting a certain amount from their invoices.
Numberofcapitalinfrastructureprojectscompleted within agreed budget.
23 15 15 0 N/A
MAINTENANCE CUSTOMISED INDICATORS
Numberofplannedmaintenanceprojectsawarded.
48 15 8 -7 The underachievement was due to budget cut that has been implemented in thefinancialyearwhen the targets were already committed.
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Performance Indicator
Actual 2015/16
Annual Target 2016/17
Actual 2016/17
Deviations Comment on deviations
Numberofplannedmaintenanceprojectscompleted within the agreed contract period.
39 14 6 -8 The underachievement was due to the following two reasons:
Seven(7)•projectsthatwere not completed on time due to poor performance of contractors. Five(5)contractors were subsequentlyput on penalties and two(2)wereterminated.
One(1)project•has been granted an extension of time.
Numberofplannedmaintenanceprojectscompleted within agreed budget.
44 14 7 -7 The underachievement was due to the following two reasons:
Six(6)projects•that were not completed on time due to poor performance of contractors. Three(3)contractors were subsequentlyput on penalties andthree(3)contracts were terminated.One(1)project•has been granted an extension of time.
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Performance Indicator
Actual 2015/16
Annual Target 2016/17
Actual 2016/17
Deviations Comment on deviations
IMMOVABLE ASSET MANAGEMENT
Strategic Objective 2.2.: Verify 10 000 (5-year target) assets in the asset register to ensure thecomplete, reliable and accurate information in relation to the provincial property portfolio by 2020.
NumberofimmovableassetsverifiedintheImmovableAssetRegister(IAR)inaccordance with the mandatory requirementsofNationalTreasury.
3 622 3 607 (**note)
4 286 +679 The over-achievement was based on the new vesting received from Department of Rural Development and Land Reform (RDLR),newacquisitionsthrough Section 42ofPFMAand deeds transfer which were validated through the deeds download in May 2017.
FACILITY OPERATIONS
Numberofconditionassessments conducted on state-owned buildings.
100 110 90 -20 The unit completed 110 technical condition assessments,however,assessments of 20 buildings did not match the criteria state-owned buildings and therefore could not be recognised as achievements.
PROVINCE SPECIFIC PERFORMANCE INDICATORS
Compiledandsubmitted compliant U-AMPasperrequirementsofProvincial Treasury.
1 1 1 0 N/A
UserAssetManagement Plans for other departments reviewed.
13 13 13 0 N/A
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Performance Indicator
Actual 2015/16
Annual Target 2016/17
Actual 2016/17
Deviations Comment on deviations
StrategicObjective2.3.:Aneffectiveandefficientuseoftheprovincialpropertyportfoliotofacilitate the attainment of service delivery and socio-economic objectives by providing at least 20 leased accommodations within agreed time by 2020.
Numberofidentifiedstrategic properties approved by the AccountingOfficerforrevenue generation purposes.
10 10 12 +2 The over achievement of two properties is a result of vacant land in Sunningdale East Londonidentifiedfor housing development which constituted land parcels or erven and therefore counted as 3 properties for revenue generation.
Numberofprovincial properties recommended for confirmationofvestingthrough the Provincial State Land Disposal Committee(PSLDC).
133 150 167 +17 The over-achievement of 17 vesting applications has been recorded due to the new Surveyor-Generaldiagrams obtained for properties in theO.RTambo,Amatole&SarahBaartman regions. Theconfirmationof ownership (vesting)mustbeimplemented as soon as diagrams are available or previous certificatesare rescinded or properties identifiedforvesting through research(e.g.ImmovableAssetRegisteranalysis,landaudits,etc.).
*Note: A typo in the APP reflecting a target of completing 980% of projects within approved budget has been correctly adjusted to 90% in the APR.
**Note:The target reflected as 3 500 against the strategic objective 2.2 is correct as it was set at the begining of a 5 year planning cycle. The seeming misalignment between the figure reflected in page 43 and the one on page 47 is due to the change in the environment which necessitated the revision of the target in 2016/17
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E. Summary of Program Performance
Thedepartmenthasachieved76.9%ofitstargetsontwostrategicobjectivesthatrelatetoitscustodianshiprolesof immovableassetplanningandmanagement. In relation to its roleasan implementingagent, thedepartmentachieved69%ofitstargetsinrelationtodesigns,procurement,constructionandmaintenanceofthebuildinginfrastructure.Inundertakingitsprojects,DRPWmakeseveryefforttoensurethatnationalandprovincialaspirationsarereflectedandadvanced.
Forexample, amongst thedesignsdeveloped, someare in linewith theprioritiesof government suchascatering forgreenbuildingrequirementsandaccess to thephysicallychallenged; lifts thatareconstructedhavefeaturesthatassisttheblindforthepurposesofequityandaccessbyall.
The erection of new fencing to schools is for the purpose of providing security to the learners and safekeeping of the buildings.The newOutPatientsDepartment (OPD) atCloete Joubert hasmade it easy to accesshealth care services. The department installed a new elevated water tank at Lingcon Primary School as an interventionforwatersecuritymanagement.Theprojectsthatwerenotachievedareduetoacombinationof challenges like contractor performance on site, in certain instances penaltieswere imposedwhere thecontractors were at fault.
TheCustodianAssetManagementPlan(C-AMP)whichisderivedfromtheUserAssetManagementPlans(U-AMPs) of 13 user departments was submitted to Provincial Treasury in accordancewithGIAMA. Thedepartmentconducted90conditionalassessments that informed theC-AMPwhich in turn form thebasisfor the accommodation,maintenance and capital needs of the province. The overall achievement in thisprogrammereflectsadepartmentthatisoncoursetowardstheattainmentofitsgoalofhavinganefficientimmovable assets management regime that is fully responsive to needs of provincial government and its socio-economic transformational agenda.
Thechallengesthatresultedinthenon-achievementofprojectsweredueto,amongstothers:
• Budgetarycutsasaresultoftheshrinkingfiscus;
• Poor performance of contractors
F. Strategy to overcome areas of under-performance
• ThedepartmentwillcontinuetostrengthenitsprocessesofmonitoringprojectsbyimprovingattendancetoprovincialinfrastructureforummeetingswheretheDepartmentofRoadsandPublicWorks,ProvincialTreasury and Sector Departments meet to resolve infrastructure related challenges.
• The establishment of the infrastructure procurement unit has notably improved the level / degree of infrastructureprojectsprocurementandhasbroughtaboutstrictadherencetodepartmentalprocurementprocesses and plans.
G. Changes to planned targets
• There were no changes to planned targets during the reporting period.
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H. Linking Budget with Performance
Sub-Programme Name
2016/17 2015/16
Final Appro-priation
Actual Expenditure
(Over)/Under
Expenditure Final Appro-
priation Actual
Expenditure (Over)/Under
Expenditure R’000 R’000 R’000 R’000 R’000 R’000
2.1 Programme Support 130 966 130 966 - 124 717 123 268 1 449 2.2 Planning 3 030 3 030 - 4 471 4 438 33 2.3 Design - - - 63 117 63 117 - 2.4 Construction 251 933 251 933 - 202 107 202 104 3 2.5 Maintenance 174 575 174 575 - 163 932 163 932 -
2.6 ImmovableAssetManagement 670 224 670 224 - 607 572 586 919 20 653
2.7 Facility Operation 128 194 128 194 - 110 905 110 905 -
Total 1 358 922 1 358 922 - 1 276 821 1 254 683 22 138
The programme has recorded an expenditure of 100%, contributing towards the 84% achievement of itsplanned targets.
2.5.3 Programme 3: Transport Infrastructure
A. Purpose
Toprovidespecialistservicesandinternalconstructioncapacityintermsofroadinfrastructureplanning,design,construction,managementandmaintenance.Theprogrammedoesthisinconjunctionandcollaborationwithnationalroadsagencies,districtandlocalmunicipalities.
B. Sub-Programmes
• Programme Support
• Planning
• Design
• Construction
• Maintenance
C. Strategic Objectives for 2016/17
Overall Programme Objective
3.1. Toprovidenetworkplanningfor(4223km)surfacedand(37091,95km)gravelproclaimedprovincialroads by 2019/20.
3.2. Toconstruct97,5kmprovincialproclaimedroadsby2019/20.
3.3. To maintain 185 739 m2 per annum provincial proclaimed roads by 2019/20.
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D. Strategic objectives, performance indicators, planned targets and actual achievements
Strategic Objectives for Programme 3: Roads Infrastructure
Programme 3: Roads Infrastructure
Strategic Objective
Actual 2015/16
Planned Target 2016/17
Actual 2016/17
Deviations Comment on deviations
3.1 To provide network planning for(4223km)surfaced and(37091,95km)gravel pro-claimed provincial roads by 2019/20.
4176 km 4 223 km surfaced roads visually assessed.
3781.29km -441.71km The under-performance is attributable to the 436.98km of paved road network that was transferred to SANRAL withtheir budget in June 2016 due to amendment in the gazette. The transfer meant that the remaining figure for provincial proclaimedroads became 3 786.02 km. Against this latter figure, theprogramme under achieved by 4.73km.
29 180km 0 0 0 N/A
3.2 To con-struct 97,5kmprovin-cial pro-claimed roads by 2019/20.
11.948 km 47 km 30.4km -16.6km The Sabalele Project whichcontributed 17km to the overall annual target has been delayed in implementation due to increasedquantities in thehardmaterial excavations for road construction and stormwater installations during the course of theproject.Itisimportanttonotethat SLATsolwana – upgradingof DR10732 phase was rounded by 0.4 km to make 17 km
3.3 To main-tain 185 739 m2 p.a. pro-vincial pro-claimed roads by 2019/20.
217 261 m2 250 000m2 64 017.61 m2
-185 982. 39m2
The underachievement was due to :
Under-planning of 153 400m• 2 was caused by the budget constraints. The budget allocated to the programme for maintenance only allowed for committing to maintain 96 600m2 instead of the 250 000m2 that was initially committed in the 2015/16 -2019/20 Strategic Plan. An achievement of•19 217.61m2 more than the blacktop patching target of 44 800 m2. Funds were shifted from the deferred reseal and rehabilitation programmes to blacktop patching due to delays in the Bisho Revitalization project, and the impact ofdelays in procurement for the reseals programme.
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Performance Indicators for Programme 3: Transport Infrastructure
Performance Indicator
Actual 2015/16
Planned Target 2016/17
Actual 2016/17
Deviations Comment on deviations
CUSTOMISED PERFORMANCE INDICATORS
INFRASTRUCTURE PLANNING
StrategicObjective3.1:Toprovidenetworkplanningfor(4223km)surfacedand(37091,95km)gravel proclaimed provincial roads by 2019/20.
Numberofkilometres of surfaced roads visually assessed as per the applicable TMH manual.
4 176km 4 223km 3781.29km -441.71km The under-performance is attributable to the 436.98km of paved road network that was transferred to SANRAL withtheir budget in June 2016 due to amendment in the gazette. The transfer meant that the remainingfigureforprovincialproclaimed roads became 3 786.02 km. Against thislatter figure, the programmeunder achieved by 4.73km.
Numberofkilometres of gravel roads visually assessed as per the applicable TMH manual.
29 180km 0 0 0 N/A
CONSTRUCTION
Strategic Objective 3.2: To construct 97,5km provincial proclaimed roads by 2019/20.
Numberofkilometres of gravel roads upgraded to surfaced roads.
11.948 km 47 km 30.4km -16.6km The Sabalele Project whichcontributes 17km to the overall annual target has been delayed in implementation duetoincreasedquantitiesinthe hard material excavations for road construction and stormwater installations during the course of the project. It is important tonote that SLA Tsolwana –upgrading of DR10732 phase was rounded by 0.4km.
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Performance Indicator
Actual 2015/16
Planned Target 2016/17
Actual 2016/17
Deviations Comment on deviations
MAINTENANCE
Strategic Objective 3.3: To maintain 185 739 m2 p.a. provincial proclaimed roads 2019/201.
Numberofsquaremetresof surfaced roads rehabilitated.
21 850 m2 1800m2 0 -1800 m2 The Bhisho Revitalisation project which comprised theoverall annual target has been delayed in implementation due to inclement weather and slow progress from the contractor. Penalties have been applied to the contract and the completion of the project is expected in May2017.
Numberofsquaremetresof surfaced roads resealed.
66 638.89 m2
50 000m2 0 -50 000 m2 The procurement for reseal projectswasimpactedbythecontrol measures that were put in place to curb possible unauthorised expenditure. The funds intended for this programme were reprioritized to existing commitments in the regravelling and blacktop patching indicators resulting in over achievement in those areas.
Numberofkilometres of gravel roads re-gravelled.
968.42130 km
686 km 799.94km +113.94km The over performance in the indicator is attributable to the additional money that was channelled from the deferred reseal and rehabilitation programmes to regravelling.
Numberofsquaremetresof blacktop patching.
128 772.679 m2
44 800m2 64 017.61 m2
+19 217.61 m2
The over performance in the indicator is attributable to the additional money that was channeled from the deferred reseal and rehabilitation programmes to blacktop patching.
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Performance Indicator
Actual 2015/16
Planned Target 2016/17
Actual 2016/17
Deviations Comment on deviations
Numberofkilometres of gravel roads bladed.
26 832.540 km
30 100km 28019.05km -2 080.95km The procurement for Routine Maintenance Contracts inthe maintenance of gravel roads per Local Municipal Area was impacted by thecontrol measures that were put in place to curb possible unauthorised expenditure in the programme. The funds intended for this programme were reprioritised to existing commitments in the regravelling and blacktop patching indicators.
E. Summary of Programme Performance
Thedepartmentachieved64%ofitsplannedtargetsinthisprogramme.Onsurfacedroadsrehabilitated the BishoRevitalizationprojectwhichcomprisedtotheoverallannualtargethasbeendelayedinimplementationdue to inclement weather and slow progress from the contractor.
Theupgradingof10kmfromCentanetoQholorhahasprovidedaccesstoatotalnumberof54villages,5clinics,34schoolsand toanumberofothersocialamenities.Thisarea is renownedasahub for tourismopportunities in the province. Furthermore, 12.4 km from theService LevelAgreementwith theTsolwanaMunicipalitydirectlybenefittedthecommunitiesofZolaTownship,Hofmeyer,LuxolweniTownshipaswellasTarkastad.TheroadalsogaveeaseofaccesstotheTsolwanaNatureReserve.Withrespecttomaintenance,the programme over performed in re-gravelling and underperformed in blading due to a conscious decision that was taken to do more re-gravelling than blading as a form of sustainable service on provincial gravel roads.
The re-gravelling of roads made it easy to access government services in rural areas of the province. The procurementforresealprojectswasimpactedbythecontrolmeasuresthatwereputinplacetocurbpossibleunauthorised expenditure. The funds intended for this programme were reprioritised to existing commitments in the regravelling and blacktop patching indicators resulting in over achievement in those areas.
Challenges
• Technical capacity remained a challenge and the recruitment process in an endeavour to capacitate the programme particularly its management structures has not yielded the desired results.
• Reduction in budget allocations for theprogrammedidnot allow for anynewsurfacingprojects tobeimplemented beyond the current portfolio of the programme.
• Budget constraints for plant recapitalisation remained a challenge and the funding model for Roads did not allow room to procure plant. This is crippling any future endeavours to capacitate In-House teams.
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F. Strategy to overcome areas of under-performance
• The programme has put in place, through Supply Chain Management Unit, additional procurementCommittees in order to accelerate procurement processes for infrastructure procurement and avoidinstances of delays like the ones that affected the reseal programme. This will address the bottlenecks that oftenleadtodelaysintheawardingofcontracts.Therearenowthree(3)BidEvaluationCommitteesforinfrastructure in the department.
G. Changes to planned targets
There were no changes to planned targets during the reporting period.
H. Linking Budget with Performance
Sub-Programme Name
2016/17 2015/16
Final Appro-priation
Actual Expenditure
(Over)/Under
Expenditure
Final Appro-priation
Actual Expenditure
(Over)/Under
Expenditure R’000 R’000 R’000 R’000 R’000 R’000
3.1 Programme Support 16 587 16 587 - 19 070 18 800 270 3.2 Planning 16 076 16 076 - 16 898 16 898 - 3.3 Design 8 586 8 586 - 13 601 13 593 8 3.4 Construction 1 141 637 1 141 637 - 918 064 917 515 549 3.5 Maintenance 801 642 786 894 14 748 918 022 918 022 - 3.6 Mechanical 93 350 93 350 - 117 129 117 125 4
Total 2 077 878 2 063 130 14 748 2 002 784 2 001 953 831
TheprogrammeutilisedanamountofR2,1billionor99.3%ofitsallocatedbudget.The0.7%underexpenditureemanatedfromthelateawardingofdisasterprojects(DR08121,DR08116,DR08120,DR08245,DR08119,DR08100),re-advertised(DR08017andDR08079)duetonon-responsivenessofbidderstotheconditionsofthetenderaswellasthedelaysinthecompletionofawardedproject(DR08125)duetocommunityproteststhat resulted in stoppage of work.
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2.5.4. Programme 4: Expanded Public Works Programme
A. Purpose
To align departmental socio-economic initiatives to national and provincial government priorities in terms of jobcreationandpovertyreductionandtoimplementtheseprogrammesinconjunctionwithotherprovincialgovernmentdepartments,districtandlocalmunicipalitiestoensureviableandsustainablelong-termenterpriseand economic development.
B. Sub-Programmes
• Programme Support
• CommunityDevelopment
• Innovation and Empowerment
• Co-ordination&ComplianceMonitoring
C. Strategic Objectives for 2016/17
Overall Programme Objectives
4.1. To bring about the development and empowerment of impoverished communities through the creation of 48 300 work opportunities by 2020.
4.2. To develop 300 contractors by 2019/20.
4.3. To provide skills through 25 empowerment interventions by 2019/20.
4.4. To promote the implementation of 10 labour-intensive initiatives by 2019/20.
4.5.Topromote,integrate,coordinateandmonitorimplementationofEPWPPhase3by56publicbodiesby 2019/20.
D. Strategic objectives, performance indicators, planned targets and actual achievements
Strategic Objectives for Programme 4: Expanded Public Works Programme
Programme 4: Expanded Public Works Programme
Strategic Objective
Actual 2015/16
Planned Target 2016/17
Actual 2016/17
Deviations Comment on deviations
4.1 To bring about the development and empowerment of impoverished communities through the creation of 48 300 work opportunities by 2020.
50 471 50 000(51000-*notebelow)
54 479 +3 479 The over- achievement was due to more work opportunities created by CommunityDevelopment through replacement of Household Contractorsthatare deceased and / or resigned.
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Programme 4: Expanded Public Works Programme
Strategic Objective
Actual 2015/16
Planned Target 2016/17
Actual 2016/17
Deviations Comment on deviations
4.2 To develop 300 contractors by 2019/20.
154 Contractors.
150 Contractors.
222 +72 The over- achievement was due to training facilitated for the Integrated ConstructionDevelopment Programme in line with the pronouncement made in the budget speech.
4.3 To provide skills through 25 empowerment interventions by 2019/20.
5 6500(5)**notebelow.
1923(4)
-4 577(-1)
Due budget constraints,the programme planned to achieve 4 interventions during the 2016/17 financialyearinstead of 5 that was initially committed in the 2015/16-2019/20 Strategic Plan.
4.4 To promote the implementation often(10)labour-intensive initiatives by 2019/20.
2 2 5 +3 The over achievement is due tomoreprojectsthatwereidentifiedfor the promotion of labour intensive method during the year under review.
4.5 Topromote,integrate,coordinate and monitor implementation of EPWP Phase 3 by 56 public bodies by 2019/20.
56 Public Bodies.
Public 50 Bodies.
50=100%***notebelow.
N/A N/A
*Note: Although a revised target was disclosed in the 2016/17 APP page 100, the revised target was erroneously not amended in the Strategic Objectives table but only changed in the Performance Indicators table below. The correct target is 51 000 reflected in ( )
**Note: The target for 2016/17 on the Strategic Objectives table was erroneously revised during the planning process to reflect the number of beneficiaries to be trained instead of interventions planned for training those beneficiaries. The targets initially committed have since been reinstated.
***Note: Number of public bodies reporting on EPWP targets within the Province were reduced from 56 to 50 during the amalgamation that took place at the Amathole, Chris Hani, Joe Gqabi and Sarah Baartman municipalities after the local government elections. All 50 public bodies are reporting, that is why this is reported as 100% achievement”
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Performance Indicators for Expanded Public Works Programme
Performance Indicator
Actual 2015/16
Planned Target 2016/17
Actual 2016/17
Deviation Comment on deviations
COMMUNITY DEVELOPMENT
Strategic Objective 4.1: To bring about the development and empowerment of impoverished communities through the creation of 48 300 work opportunities by 2020.
NumberofEPWPworkopportunities created by the Provincial Department of Public Works/Roads.
50 471 51000 54 479 +3 479 The over- achievement was due to more work opportunities created by CommunityDevelopment through replacement of Household Contractorsthat are deceased and / or resigned.
Number of Full TimeEquivalents (FTE’s)created by the Provincial Department of Public Works/Roads.
20 703 21013 21 692 + 679
PROVINCE SPECIFIC PERFORMANCE INDICATORS
Number of livelihoodprojectsmonitored.
10 11 11 N/A N/A
INNOVATION AND EMPOWERMENT CUSTOMISED PERFORMANCE INDICATORS
Strategic Objective 4.2: To develop 300 contractors and provide skills through 25 empowerment interventions by 2019/20.
NumberofbeneficiaryEmpowerment Interventions.
5 4 4 N/A N/A
PROVINCE SPECIFIC PERFORMANCE INDICATORS
Strategic Objective 4.3: To promote the implementation of 10 labour intensive initiatives by 2019/20.
Numberoflabourintensive initiatives promoted.
2 4 5 + 1 The overachievement isduetomoreprojectsthatwereidentifiedforthe promotion of labour intensive initiatives during the year under review.
Numberofunemployedpeople employed throughAmathubaJobs Portal.
5 115 3000 3000 N/A N/A
CUSTOMISED PERFORMANCE INDICATORS
COORDINATION AND COMPLIANCE MONITORING
Strategic Objective 4.4: To promote, integrate, coordinate and monitor implementation of EPWP Phase 3 by 56 public bodies by 2019/20.
Number of publicbodies reporting on EPWP targets within the Province.
56 56 50=100%*notebelow.
0 N/A
59
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Performance Indicator
Actual 2015/16
Planned Target 2016/17
Actual 2016/17
Deviation Comment on deviations
Numberofinterventions implemented to support public bodies in the creation of targeted number of work opportunities in the province.
7 7 7 0 N/A
PROVINCE SPECIFIC PERFORMANCE INDICATORS
NumberofRoadForumsfunctional according to Terms of Reference.
32 45 8 -37 The under achievement was due to local government elections and changes in the political leadership at local government which disrupted the convening and sitting of roads forums to be considered functional forums as per the TOR.
**Note: Number of public bodies reporting on EPWP targets within the Province were reduced from 56 to 50 during the amalgamation that took place at the Amathole, Chris Hani, Joe Gqabi and Sarah Baartman municipalities after the local government elections. All 50 public bodies are reporting, that is why this is reported as 100% achievement”
E. Summary of Programme Performance
TheProgrammehasrecordeda91%performanceduringtheyearunderreview.Ofimportance,weresuccessesrecordedinrespecttojobcreationandempowermentinterventionsthroughtrainingeffortswhichcontributedsignificantlytothestrategicgoalnumberfour(4)ofdevelopingandempoweringcommunitiesandconstructionemerging contractors to ensure sustainable livelihoods and employment.
F. Strategy to overcome areas of under-performance
In order to overcome under performance in the number of public bodies reporting on EPWP targets within the province,theProgrammewillrevisetargetsfortheaffectedregionsin2017/18financialyearinlinewithnewlyamalgamatedmunicipalities.InrelationtofacilitationandconveningofRoadsForums,accordingtoTermsofReference,theProgrammewillconductinductionsessionsforthenewlyappointedpoliticalleadershipatlocalgovernmentlevelinanefforttoensureefficientconveningofmeetings.
G. Changes to planned targets
There were no changes to planned targets during the reporting period.
60
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
H. Linking Budget with Performance
Sub-Programme Name
2016/17 2015/16
Final Appro-priation
Actual Expenditure
(Over)/Under
Expenditure
Final Appro-priation
Actual Expenditure
(Over)/Under
Expenditure R’000 R’000 R’000 R’000 R’000 R’000
4.1 Programme Support 15 690 15 690 - 7 645 7 645 -
4.2 CommunityDevelopment 469 187 469 187 - 456 564 455 774 790
4.3 Innovation and Empowerment 73 196 73 196 - 81 730 81 730 -
4.4 Co-ordinationandComplianceMonitoring 30 874 30 874 - 34 007 34 007 -
Total 588 947 588 947 - 579 946 579 156 790
Theprogrammehasrecordedanexpenditureof100%,onwhichithasachieved91%ofitsplannedtargets.
2.6 Transfer Payments
2.6.1.TransferPayments(ExcludingPublicEntities)
Name of the Transferee
Purpose for which the funds were
used
Compliance with s38(1)(j)ofthe
PFMA
Amount received
Amount spent by entity
Reason for the funds unspent
by entityR’000 R’000
DRPW.
Payment of rates and taxes for the government owned buildings.
N/A 282 299 282 299 N/A
2.6.2. Transfer Payments to Public Entities
The department has no trading or public entities in its portfolio nor does it have unlisted investments or funds.
2.6.3.Conditionalgrantsandearmarkedfundsreceived(NB:Nonon-financialdatapergrant)
Intheperiodunderreview,thedepartmentadministeredtwo(2)conditionalgrantsnamely,ProvincialRoadsMaintenanceGrant(PRMG)andEPWPIncentiveGrant.
Grant name Final
Appropriation Actual
Expenditure Variance
R’000 R’000 R’000ProvincialRoadsMaintenanceGrant. 1 320 829 1 306 082 14 747 Expanded Public Works Incentive to Provinces. 52 848 52 848 - Total 1 373 677 1 358 930 14 747
61
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
PROVINCIAL ROADS MAINTENANCE GRANT
Department who transferred the grant. NationalTransport.
Purpose of the grant. Tosupplementprovincialroadsinvestmentandsupportpreventative,routineandemergency maintenance on provincial road works.
Expected outputs of the grant.
Roadclassificationprocessesare100percentcompleteandcontinuouslymaintained,includingallnewly.FullyfunctionalRAMSinlinewithminimumTMH22requirementsforaprovincialroad authority.NetworkconditionassessmentanddeterminationofprojectprioritylistfromtheRAMS.Thefollowingactualdeliveryrelatedmeasuresagainst2016/17targetsdefinedinthefinalRoadAssetManagementPlan(RAMP)foreachprovince:
o number of lane kilometres of surfaced roads rehabilitated.onumberoflanekilometresofsurfacedroadsresurfaced(overlayorreseal).onumberofm²ofblacktoppatching(includingpotholerepairs).o number of kilometres of gravel roads re-gravelled.o number of kilometres of gravel roads bladed.Thefollowingperformancebasedonnationaljobcreationindicators.onumberofjobscreated.onumberoffulltimeequivalents(FTEs)created.onumberofyouthsemployed(18-35).o number of women employed.o number of people living with disabilities employed.
Thefollowingperformancebasedonnationaljobcreationindicators.onumberofjobscreated.onumberoffulltimeequivalents(FTEs)created.onumberofyouthsemployed(18-35).o number of women employed.o number of people living with disabilities employed.
UpdatedroadconditiondataasperTMH22(pavedandunpaved),trafficdata,andbridgeconditionreportby30-Nov-16.NumberofcontractorsintheContractorDevelopmentProgramme(CDP).
onumberofcontractorsgraduatingthroughtheConstructionIndustry Development Board grading system.
Actualoutputsachieved.
Numberofsquaremetresofsurfacedroadsrehabilitated-0.Numberofsquaremetresofsurfacedroadsresealed-0.Numberofkilometresofgravelroadsre-gravelled-799.94.Numberofsquaremetresofblacktoppatching-64017.61.Numberofkilometersofgravelroadsbladed-28019.05.
AmountperamendedDORA. 1 279 725 Section22ProvincialAllocation. 41 104 AmountTransferredR’000. 1 320 829 ReasonsifamountasperDORAnot transferred. Allfundstransferred.
Amountspentbythedepartment. 1 306 082
Reasons for the funds unspent by the department.
Theunderexpenditureisduetothelateawardingofdisasterprojects(DR08121,DR08116,DR08120,DR08245,DR08119,DR08100),re-advertised(DR08017andDR08079)duetonon-responsivenessofbidderstotheconditionsofthetenderaswellasthedelaysinthecompletionofawardedproject(DR08125)duetocommunityproteststhatresultedinstoppageofwork.AnamountofR14.071millionhasbeenrequestedtoberolledover.
Monitoring mechanism by the transferring department. N/A
62
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
EPWP INCENTIVE GRANT
Department who transferred the grant. NationalDepartmentofPublicWorks.
Purpose of the grant. CreateJobs.
Expected outputs of the grant.NumberofpeopleemployedandreceivingincomethroughEPWP.Increased average duration of work opportunities created.
Actualoutputsachieved.NumberofpeopleemployedandreceivingincomethroughEPWPwere45959.Increased average duration of work opportunities created were 2 656.
AmountperamendedDORA. 52 848 AmountTransferredR’000. Allfundstransferred.ReasonsifamountasperDORAnot transferred. N/A
Amountspentbythedepartment. 52 848 Reasons for the funds unspent by the entity. N/A
Monitoring mechanism by the transferring department. N/A
2.7 Donor Funds
Nodonorfundswerereceivedbythedepartmentintheyearunderreview.
2.8 Capital Investments
2.8.1. Capital Investment, Maintenance and Asset Management Plan
The following tableaccounts for the infrastructureexpenditureof thedepartment for the2016/17financialyear.
Infrastructure Categories
2016/17 2015/16Final Appro-
priation Actual
Expenditure (Over)/UnderExpenditure
Final Appro-priation
Actual Expenditure
(Over)/UnderExpenditure
R’000 R’000 R’000 R’000 R’000 R’000Newandreplacementassets 68 504 68 504 - 84 242 84 368 -126
Existing Infrastructure - - - - - -UpgradeandAdditions 1 195 582 1 195 582 - 957 377 957 250 127 Rehabilitation,renovations and refurbishments
3 434 3 434 - 11 273 11 272 1
Maintenance and Repairs 1 055 077 1 040 330 14 747 1 157 290 1 157 292 -2
Total 2 322 597 2 307 850 14 747 2 210 182 2 210 182 -
63
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
A. Progress made on implementing the capital, investment and asset management plan.
Asacustodianofprovincialinfrastructure,thedepartmentreviewsallUserAssetManagementPlans(UAMP)ofthevarioususerdepartment.TheseplansthenformthebasisfortheCustodianAssetManagementPlanwheretheaccommodationneedsforalldepartmentsfindexpression.DraftbudgetsarecompiledwithintheCustodianAssetManagementPlanandthisfurtherinfluencestheprojectedMTEFbudgetforcapitalinvestmentand maintenance needs for the provincial property portfolio.
B. Infrastructure projects which have been completed in the current year and the progress in comparison to what was planned at the beginning of the year:
Buildings Infrastructure
No Region Project Name Contract Sum Contract Value On Practical Completion
1 JoeGqabi CompletionofMagwaxazaJSS. R 2 796 731.20 R 3 048 568.60
2 ChrisHani Bulelani SSS – Erection of Palisade Fencing. R 1 609 123.68 R 1 609 123.68
3 Sarah Baartman Erection of new security fence to Mfesane SSS. R 1 330 382.28 R 1 330 382.28
4 Amathole CompletionoftheECDcentreatZamuxoloJSS. R 1 372 064.10 R 1 372 064.10
5 JoeGqabi CloeteJoubertHospital. R 5 135 597.31 R 5 112 661.61
6 O.R Tambo ConstructionofUpperNgqungqu. R 30 981 928.88 R 30 981 928.88
7 AlfredNzoCompletionofStPatricksHospital:NewOPD/Casualty&RemainderofClinicalAreas.
R 199 469 330.14 R 191 258 765.69
8
ChrisHani
RenovationsandAdditionstoWhittleseaServiceOffice. R 5 156 478.20 R 5 156 478.24
9 CompletionofRepairsandRenovationstoCalaCHC. R 10 250 248.01 R 10 592 850.35
10
Sarah Baartman
NewelevatedwatertankatLingcomPrimary School. R 1 292 038.38 R 1 292 038.38
11 Renovations and Maintenance Moses MabidaPublicLibraryforDSRAC. R 3 019 147.50 R 3 019 147.50
12 ChrisHani Renovations and Maintenance of CathcartPublicLibraryforDSRAC. R 1 541 576.40 R1 541 576.50
13Sarah Baartman
Newhighfence:AddoPrimarySchool. R 1 637 199.74 R 1 637 199.74
14 Erection of weldmesh perimeter fencing at David Livingston SSS. R 2 060 248.81 R 2 060 248.81
15 AmatholeDesign,Supplyanderectmodularstructure for Department of Social Development in Keiskammahoek.
R 5 110 032.77 R 5 110 032.77
64
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Roads Infrastructure
The Transport Infrastructure (Roads) was generally successful in implementing planned and already on-goingcapitalandmaintenanceprojectsandprogrammes.TheProgrammeplannedtocompletesixprojectsnamely:
• SLATsolwanaPhaseIIupgradingof8.25kminternalstreetsinTarkastadEastandWest
• CoffeeBaytoZithuleleroadPhase1
• N6toWiggleswade
• CentanitoQholorha
• Bhisho Revitalization Phase II
• DR7386 Sabalele
However,only thefirst fourprojectswerecompleted.BhishorevitalisationPhaseIIandDR7386Sabalelewerenotcompletedandawardedanextensionoftime.TheSabaleleprojectwasdelayedasaresultofhardmaterials that were encountered during the excavation and the stormwater installations. The non-completion of the Bhisho revitalisation Phase II is attributable to the poor performance by the contractor. The penalty clause inthecontracthasbeeninvokedandrevisedcompletiontimeforbothprojectsis31May2017.
65
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
C.
Infr
astr
uctu
re p
roje
cts
that
are
cur
rent
ly in
pro
gres
s an
d w
hen
are
they
exp
ecte
d to
be
com
plet
ed
Proj
ect /
Pro
gram
me
Nam
eM
unic
ipal
ityPr
ojec
t Sta
tus
Nat
ure
of
Inve
stm
ent
Proj
ect
Star
t Dat
ePr
ojec
t En
d D
ate
Tota
l Pro
ject
Cos
t
Wild
Coa
st M
eand
er C
offe
e B
ay to
Zith
ulel
e (Phase1)
King
Sab
ata
Dal
indy
ebo
Construction76%
-99%
Upg
radi
ng a
nd
Additions
04-J
an-1
210
/03/
2019
R20
0 00
0 00
0
T125
Pha
se 1
N2
to S
iphe
tu H
ospi
tal
Um
zim
vubu
Prac
tical
Com
pletion
(100%)
Upg
radi
ng a
nd
Additions
10-Apr-11
01-Nov-16
R32
2 66
4 00
0
Brid
ge P
rogr
amm
eNew
Oth
er -
Pack
aged
OngoingProject
Upg
radi
ng a
nd
Additions
09-Apr-09
01-Apr-18
R10
0 00
0 00
0
MthathaDam
(MthathaBypass)Phase2
King
Sab
ata
Dal
indy
ebo
Prac
tical
Com
pletion
(100%)
Upg
radi
ng a
nd
Additions
23-J
ul-1
430
/04/
2017
R28
000
000
Wild
Coa
st M
eand
er: T
ombo
to M
pam
ba/
IsilimelaHospital(Ph
ase1)-Structures
Port
St J
ohns
Construction76%
-99%
Upg
radi
ng a
nd
Additions
01-F
eb-1
431
/05/
2017
R92
000
000
SLA
: Will
owva
le to
Dw
esa
Nat
ure
Res
erve
vi
a M
seng
eni
Mbh
ashe
Tend
erU
pgra
ding
and
Ad
ditions
01-J
an-1
531
/03/
2020
R95
664
000
T125
Pha
se 3
N2
to S
iphe
tu H
ospi
tal
Mhl
ontlo
Construction26%
-50%
Upg
radi
ng a
nd
Additions
01-Apr-15
30/1
0/20
18R
230
000
000
Centaneto
KeiMou
thand
Qho
lorha(Phase
2)Mnqum
aPr
actic
al
Com
pletion
(100%)
Upg
radi
ng a
nd
Additions
26-M
ay-1
530
/11/
2017
R11
8 00
0 00
0
DR
837
6 Sa
bale
leIntsikaYethu
Construction76%
-99%
Upg
radi
ng a
nd
Additions
30-O
ct-1
430
/12/
2016
R17
0 00
0 00
0
SLATsolwanaMun
icipality(Z
ola-T
hornhill)
EnochMgijim
aConstruction76%
-99%
Upg
radi
ng a
nd
Additions
25-Apr-14
31/0
3/20
18R
115
000
000
Mt A
yliff
to R
61U
mzi
mvu
buPr
actic
al
Com
pletion
(100%)
Upg
radi
ng a
nd
Additions
01-D
ec-1
331
-Dec
-16
R 4
36 1
08
Wild
Coa
st M
eand
er: M
adw
alen
i Hos
pita
l Road(Phase2)In-ho
use
Mbh
ashe
Construction26%
-50%
Upg
radi
ng a
nd
Additions
01-O
ct-1
231
/03/
2019
R 1
44 0
00 0
00
N6toW
riggleswade(amatoleberries)
Amahlathi
Prac
tical
Com
pletion
(100%)
Upg
radi
ng a
nd
Additions
01-J
ul-1
230
/09/
2017
R10
8 00
0 00
0
DivisionalR
oad08041:C
ofimvabato
A
sket
onIntsikaYethu
Construction76%
-99%
Upg
radi
ng a
nd
Additions
01-Apr-12
31/0
3/20
22R
336
000
000
66
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Proj
ect /
Pro
gram
me
Nam
eM
unic
ipal
ityPr
ojec
t Sta
tus
Nat
ure
of
Inve
stm
ent
Proj
ect
Star
t Dat
ePr
ojec
t En
d D
ate
Tota
l Pro
ject
Cos
t
Lady
Fre
re to
Mkh
apus
i / M
acub
eni
Emal
ahle
niConstruction26%
-50%
Upg
radi
ng a
nd
Additions
10-Apr-10
31-M
ar-1
7R
253
600
000
Nka
ntol
o R
oad
Mbi
zana
Construction1%
-25%
Upg
radi
ng a
nd
Additions
01-O
ct-1
531
/10/
2017
R16
0 00
0 00
0
Lusi
kisi
ki U
rban
Ren
ewal
NgquzaHill
Prac
tical
Com
pletion
(100%)
Upg
radi
ng a
nd
Additions
11-J
an-1
415
/06/
2017
R32
000
000
R61:B
izanatoPortE
dward(Magusheni-
Mzamba)P
hase1
Mbi
zana
Construction26%
-50%
Upg
radi
ng a
nd
Additions
20-Apr-15
30/1
0/20
18R
508
000
000
Wild
Coa
st M
eand
er: M
adw
alen
i Hos
pita
l Road(Phase2)Q
uarrying
and
Crushing
Mbh
ashe
Construction76%
-99%
Upg
radi
ng a
nd
Additions
10-O
ct-1
231
/03/
2019
R32
000
000
Wild
Coa
st M
eand
er: T
ombo
to M
pam
ba/
IsilimelaHospital(Ph
ase2)-RoadWorks
Port
St J
ohns
Construction1%
-25%
Upg
radi
ng a
nd
Additions
26-M
ay-1
431
/05/
2017
R22
2 00
0 00
0
MR
0700
Upg
rade
Amahlathi
Construction76%
-99%
Upg
radi
ng a
nd
Additions
01-J
un-1
5
R19
000
000
Bhi
sho
Rev
italis
atio
n Ph
ase
2Bu
ffaloCity
Construction76%
-99%
Upg
radi
ng a
nd
Additions
01-M
ay-1
531
/08/
2017
R30
000
000
DR
0801
7 C
edar
ville
to M
veny
ane
Mat
atie
leConstruction1%
-25%
Upg
radi
ng a
nd
Additions
01-Nov-15
15/0
3/20
19R
27 5
71 7
48
R61
: Um
tavu
ma
to B
izan
a an
d N
omla
cu
Phas
e 2
Mbi
zana
Construction26%
-50%
Upg
radi
ng a
nd
Additions
01-M
ay-1
510
/05/
2018
R 4
22 0
00 0
00
In-h
ouse
Anc
illar
y W
orks
O
ther
- Pa
ckag
ed
OngoingProject
Upg
radi
ng a
nd
Additions
01-Apr-16
30-M
ar-1
7R
40 0
00 0
00
Ugi
e Lo
catio
n R
oad
Phas
e 2
Elun
dini
Construction1%
-25%
Upg
radi
ng a
nd
Additions
30-M
ar-1
631
/03/
2018
R47
000
000
DR
080
28 M
binj
a R
oad
Mhl
ontlo
Tend
erU
pgra
ding
and
Ad
ditions
01-M
ay-1
631
/10/
2017
R70
000
000
Mla
mli
Hos
pita
l Roa
dSe
nqu
Tend
erU
pgra
ding
and
Ad
ditions
15-J
an-1
715
/07/
2018
R12
0 00
0 00
0
RM
C o
wn
New
Oth
er -
Pack
aged
OngoingProject
Mai
nten
ance
and
R
epai
rs01-Aug-09
01-Apr-19
R33
9 18
3 00
0
ServiceLevelA
greement(ChrisHaniD
istrict
Mun
icipality)
New
Construction76%
-99%
Mai
nten
ance
and
R
epai
rs01-Apr-15
01-Apr-19
R 8
7 68
2 00
0
Serv
ice
Leve
l Agr
eem
ent J
oe G
qabi
Dis
tric
t M
unic
ipal
ity: G
arie
p &
Mal
etsw
aiW
alte
r Sis
ulu
Construction76%
-99%
Mai
nten
ance
and
R
epai
rs01-Apr-13
01-Apr-19
R11
4 20
4 00
0
67
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Proj
ect /
Pro
gram
me
Nam
eM
unic
ipal
ityPr
ojec
t Sta
tus
Nat
ure
of
Inve
stm
ent
Proj
ect
Star
t Dat
ePr
ojec
t En
d D
ate
Tota
l Pro
ject
Cos
t
Rou
tine
Roa
ds M
aint
enan
ceVa
rious
Oth
er -
Pack
aged
OngoingProject
Mai
nten
ance
and
R
epai
rs01-Apr-07
01-Apr-19
R 5
56 1
72 0
00
Brid
ge M
aint
enan
ceVa
rious
Oth
er -
Pack
aged
OngoingProject
Mai
nten
ance
and
R
epai
rs01-Apr-14
01-Apr-19
R 6
1 16
0 00
0
Proj
ect M
anag
emen
tVa
rious
Oth
er -
Pack
aged
OngoingProject
Mai
nten
ance
and
R
epai
rs01-Apr-15
01-Apr-19
R10
203
000
Reg
rave
lling
Pro
gram
me
Vario
usO
ther
- Pa
ckag
ed
OngoingProject
Mai
nten
ance
and
R
epai
rs01-Apr-15
31-M
ar-1
9R
466
705
000
Roa
d Si
gns
Con
trac
tsVa
rious
Oth
er -
Pack
aged
OngoingProject
Mai
nten
ance
and
R
epai
rs22
-Jul
-11
31-M
ar-1
9R
29 5
80 0
00
Res
eals
Vario
usO
ther
- Pa
ckag
ed
OngoingProject
Mai
nten
ance
and
R
epai
rs01-Apr-09
31-M
ar-1
9R
272
036
000
DR
E Su
ppor
t Con
sulta
nts
Vario
usO
ther
- Pa
ckag
ed
OngoingProject
Mai
nten
ance
and
R
epai
rs01-Apr-09
31-M
ar-1
9R
43
870
000
Dis
aste
r Res
pons
eVa
rious
Oth
er -
Pack
aged
OngoingProject
Mai
nten
ance
and
R
epai
rs01-Apr-11
01-Apr-20
R27
5 22
0 00
0
SLA
NM
BM
NMBM
Construction76%
-99%
Mai
nten
ance
and
R
epai
rs01
-Dec
-15
31-M
ar-1
9R
28
580
000
SLA
Elun
dini
Elun
dini
Construction76%
-99%
Mai
nten
ance
and
R
epai
rs01-Apr-15
31-M
ar-1
9R
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D. Plans to close down or downgrade any current facilities
The department planned to dispose of a number of residential properties, however, Provincial Treasuryrecommended that properties should be sold at market value. Regions have commenced with the disposal ofresidentialpropertiesto legalcurrentoccupants(givingcurrentoccupantsrightoffirstrefusal)atmarketvalue. Submissions have been prepared and submitted for approval by the relevant authority for the year underreviewinrespectofresidentialproperties.Overandabovethat,41otherdisposalswereapprovedanda process of transfer is underway.
E. The current state of the department’s capital assets:
Buildings Infrastructure condition and measures taken in addressing the maintenance backlog during the period under review:
The current state of thedepartment’s capital assets, for examplewhat percentage is in good, fair or badcondition.
Row Labels Count of Fair
Count of Good
Count of Poor
Count of Very Good
Count of Very Poor
GrandTotal
ASSETS>R5000(CAPITAL) 2 315 3 386 245 1 105 47 7 098
Grand Total 2 315 3 386 245 1 105 47 7 098
Percentage [%] 33% 48% 3% 16% 1% 100%
The diagrambelow provides the current state of the functional performance of the department’s propertyportfoliofollowedbythedescriptionoftherequiredactionsfortheportfolio.
Explanation of the ratings is as follows:
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Condition rating Percentage of Portfolio
Meaning
C5(excellent) 18% The facility has no defects. It is in as-new condition and appearance.
C4(good) 36% Thefacilityhasminordefects.Therearesomesuperficialwearandtear.Thereissomedeteriorationtofinishes.Majormaintenanceisnotrequired.
C3(fair) 38% The facility is in a generally acceptable condition. Therearesomesignificantdefects.Somewornfinishesrequiremaintenance.Someservicesarefunctionalbutneed attention. Some maintenance work needs to be done.
C2(poor) 7% The facility is badly deteriorated to the point that it is no longer in an acceptable condition. There are potential structural problems. The facility has an inferior appearance. There are some major defects.Componentsfailfrequently.
C1(verypoor) 1% The facility has failed. Some parts are not operational or areunfitforoccupancyornormaluse.
Thefiguresbelowdepictsactionsrequiredforstate-ownedfacilitiesingeneralaswellasperregions:
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ToefficientlyrespondtoProvincialGovernmentSpaceDemands,thedepartmentembarkedonapreparationandimplementationofdetailedportfolioplanstodeliverontherequirements.TheseplansincludeprioritisationofcategoryC3andC2classifiedassetssothattherighttypeofaccommodation,inthecorrectlocation(asperservicedeliveryrequirement)andattheoptimalcosttoProvincialGovernmentareprovidedbyDRPW(asCustodian)toUserdepartments(inlinewithGIAMA).
Furthermore,qualitydeliveryofservicewasensuredthroughsettingimprovedstandardsandnormsonthequalityofofficeaccommodationacrosstheleasedportfolio(Grades,Condition,andMaintenanceetc.).Valueformoneywasoptimisedonrentalexpenditurewhereimmovableassetsareleasedin,spaceisutilisedstrictlyaccordingtospacenorms,andrentalisbenchmarkedagainstRodeReportandPropertyBrokerNetworksforall new leases.
Further challenges related to the management and maintenance of the provincial government property portfolio –bothvacant landandbuildings.Thisrelates toStateDomesticFunctions(SDFs)builton landownedbyMunicipalities,Nationaldepartments,PrivateandParastatals.Anotherchallengerelatedtoschoolsandclinicsbuiltonunsurveyedstatelandnotownedbytheprovince.ThiscontributedtotheincompletenessoftheAssetRegister. The department continued to engage in consultation with the relevant owners mentioned above for thetransferofthesubjectproperties.ThedepartmenthasnowallocatedabudgetthoughlimitedtoembarkonaprojectofsurveyingallSDF’sonAdministrativeAreasinassistingDepartmentofRuralDevelopmentandLandReform(ChiefSurveyorGeneralOffice)asitistheirresponsibilitytosurveystateland.
GovernmentImmovableAssetManagement(GIAMA)Act19of2007,althoughthedepartmenttookstrategicstepsduringthepastfive-yearperiod,theeffectiveimplementationofGIAMAremainsachallenge.
Departmental management has stressed and highlighted the need for extensive resources in order to effectively andefficiently implementGIAMAsuccessfullyaswellascleaningandupdating theasset registersoas toensure the integrity and reliability of the data under its custodianship.
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Progress made on the maintenance of infrastructure.
Transport Infrastructure:
In the 2016/17 financial year, the programmemet most of its targets relating to themaintenance of theinfrastructure such as re-gravelling and blacktop patching. However the programme did not meet its target for rehabilitationandresealofsurfacedroads.InJuly2016thedepartmentissuedacircular(aspartoftheeffortsofmitigatingpotentialoverexpenditureoftheVotethereforeresultinginanunauthorisedexpenditure)thatputa moratorium on the awarding of new contracts. The funds that were earmarked for reseal and rehabilitation projects(whichwerestillonprocurement)whereprioritisedtoothermaintenanceprojectsthatwerealreadycommitted.
Developments relating to the above that are expected to impact on the department’s current expenditure.
Thedeferredresealandrehabilitationprojectswillnowbeimplementedinthe2017/18financialyearandthiswill have impact of exerting more pressure on the 2017/18 budget.
Major maintenance projects that have been undertaken during the period under review.
Intheperiodunderreviewthefollowingmajormaintenanceprojectswereundertaken:
Roads
o RoutineRoadsMaintenanceprojectswithanexpenditureofR148454m
o RoutineMaintenanceContracts(RMCs)withanexpenditureofR111002m
o Re-gravelling Programme with an expenditure of R135 042 m
o DisasterProjectswithanexpenditureofR75929m
o ServiceLevelAgreementwithChrisHaniDistrictMunicipalitywithanexpenditureofR26260m
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Buildings
No Region Project Name
1Amathole
RepairsandRenovationstoZwelitshaSub-RegionalOffices–RoadsDepot.
2 AlterationsandRenovationstoButterworthTrainingCentre.
3 Sarah Baartman OldFishResearch:ConcreteSlabReplacement,Alterations&Renovations.
4 HeadOffice Replacement of Seven Passenger and one goods lift together with 5 year postfinalcompletionmaintenancecontract.
5 ChrisHani KomaniOfficePark:ExtensionstoOfficeBlockforDepartmentofRuralDevelopmentandAgrarianReform.
6 Sarah Baartman CollegeateBuilding–RepairsandExtensionPhaseI.
7 AlfredNzo Renovations,Alterations&AdditionstoDRPWDepotOfficesinNtabankulu.
8 JoeGqabi ConversionofOldPaulKrugerHostelsintoOffices,Workshop&TrainingCentreforDRPW.
9 ChrisHani DRPW Queenstown - Repairs and Renovations to Mechanical Workshop.
10 ChrisHani Repairs & Renovations to Queenstown Depot.
11 HeadOffice ChungwaHouse-InternalRedecoration,LiftInstallation&FireDetectionforDepartmentofAgriculture.
12 HeadOffice InstallationofnewwatertanksatOldECDCbuildingandStateHouseBuildingforOfficeofthePremier.
13 Amathole IdutywaClusterOffices-RepairsandRenovations.
14 O.R Tambo BothaSigcauBuilding-Replacementofexisting11liftswithNewlifts.
Progress made in addressing the maintenance backlog during the period under review
Atthecurrentfundinglevels,theroadsinfrastructurebacklogislikelytoincrease.TheProvinceisfacedwithbothcapitalandmaintenancebacklogs,inthatonly9%oftheProvincialnetworkissurfaced,comparedtothenationalaverageofProvincesofaround25%.Basedoncurrenttrafficvolumesonthenetwork,approximately2000km of gravel roads need to be upgraded to surfaced standard.
Withregardstothemaintenancebacklog,theProvincereceiveslessthanhalfoftherequiredbudgetoveranextendedperiod.ThishasresultedinasteadydeclineintheVisualConditionIndexofsurfacedroads,whichhasrecentlyresultedintheaveragenetworkconditiondecreasingfromafairtoapoorcondition.Anurgentinterventionisrequiredtomaintainthesurfacedroadsinordertopreventthemfrommovingbeyondthestageofrequiringperiodicmaintenance,andintothestagewherehighlycostlyrehabilitation/reconstructionwillberequired.Similarly,thegravelroadnetworkisinaverypoorcondition,withgravelthicknessbeingthemostpressingcauseforconcern.Aninadequatere-gravellingprogrammehasresultedinmostofthegravelroadslosingtheirgravelwearingcourse,leavingthemexposedtoadverseweatherconditions.
Thedepartmenthassubmittedthebacklogsto theFinancialandFiscalCommission(FFC), in thehopeofobtaining additional funding to address these backlogs. The under-funding of roads is also reported to the Department of Transport and theNational and Provincial Treasury on an annual basis, as these fundingshortfallsaredescribedindetailintheannualRoadAssetManagementPlan.
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Details as to how asset holdings have changed over the period under review, including information on disposals, scrapping and loss due to theft
Reconciliation of Movement in the Movable Asset Register as at 31 March 2017
# Assets Major R’000 Minor R’000 Total R’000
Amount per AFS 39 921 453 143 33 721 486 864
Correctionofpriorperioderror (2693) 925 (1869) (944)
Adjustedopeningbalance 37 228 454 068 31 852 485 920
Total Derecognitions (2499) (13005) (850) (13855)
Losses (34) (439) (27) (466)
Donations (1598) (906) (635) (1541)
Disposals (686) (11581) (170) (11751)
External owners (181) (79) (18) (97)
Additions 1 456 15 401 1 681 17 082
Accruals 358 3 614 140 3 754
Closing balance at 31 March 2017 36 543 460 078 32 823 492 901
Measures taken to ensure that the department’s asset register remained up-to-date during the period under review
• Assets accounted for on theAccrual basis (assets verified and captured in theAsset Register whendelivered)
• AssetRegisterandGeneralLedger(BAS)Reconciliationdoneonaweeklybasis.
• Regularverificationofexistingassetsisperformedonanongoingbasis.
• Anannualprogrammedverificationofallassetsisperformedatfinancialyearend.
• Procedures and Policy are in place to guide stakeholders with regard to the management and reporting of lost,donatedanddisposedassets.
• AllassetcustodiansmustsigntheOfficeAssetRegister.
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PART C: GOVERNANCE
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3. PART C: GOVERNANCE
3.1. Introduction
The department is committed to maintain the highest governance standards which are fundamental to the management of public finances and resources. Good governance is essentially about effective, ethical,responsible,transparentandaccountableleadership.AtDRPWgovernancealsoentailshowdepartmentismanaged,which includesculture,policiesandstrategiesand theway it dealswith stakeholders.Outlinedbelow is a number good governance structures and practices theDepartment has in place to effectively,efficientlyandeconomicallyutilizethestateresourcesentrustedtoitbythetaxpayers.
3.2. Risk Management
TheDepartmentofRoadsandPublicWorksreviewedandapprovedtheRiskManagementPolicy,Strategyand Risk Management implementation Plan during the year under review. The Risk Management Unit took a proactive approach in conducting awareness campaigns on risk management strategy and policies to ensure that risk management is incorporated into the language and culture of the department and embedded in thebehaviourandmind-setof itsemployeesasprescribedby thePFMAandTreasuryRegulations3.2.1.Risk management objectives were set for the implementation, communication and improvement of riskmanagement within the department. The process of managing risk is a structured approach for incorporating riskmanagementintothedaily,broadermanagementprocesses.
TheKingCodestatesthat“TopManagementisresponsibleforthetotalprocessofriskmanagement,aswellasforformingitsownopinionontheeffectivenessoftheprocess”.TheKingCodereflectsonriskmanagementasan integral part of strategic and operational activities. The Head of Department committed management of the departmenttocomplywithallrelevantCorporateGovernanceprocesses.TheRiskmanagementandInternalAuditUnitsofthedepartmentreportsatanappropriatelevel(administrativelyreporttotheHeadofDepartmentandfunctionallytotheAuditCommittee).RiskManagementcontinuedtobepresentedintheTopManagementCommitteeduringtheyearunderreviewisastandingitemontheagendaoftheTopManagementCommitteemeetings.
TheRiskManagementUnit,throughtheapprovedRiskManagementImplementationPlan,regularlyconductsrisk assessment at different directorates and regions. On a monthly basis the Risk Management Unit reports onemergingrisksidentifiedtothedepartmentalTopManagement.RiskManagementreportedresultsofthemonitoringprocesstoRiskandEthicsManagementCommittee,AuditCommitteeandProvincialTreasury.
Included in the Risk Management process was quarterly reporting by programs and regions on theimplementationofRiskactionplans,validationoftheactionsreportedandreportingonthestatusoftheriskstotheRiskManagementCommittee.RiskManagementcontinuedtodowellonMPATasitwasassessedtobeatlevelscoreof4whichisthehighestscoreaccordingtoDepartmentofPlanning,MonitoringandEvaluation.
RISK MANAGEMENT COMMITTEE
TheHeadofDepartmentappointedRiskandEthicsManagementCommitteewithanexternalChairpersonduringtheyearunderreviewtoexercisecertainresponsibilitiesincluding,amongstothers:
Monitoringthedevelopment,implementationandrevisionofthefraudpreventionstrategy;
Monitoring and reviewing the fraud cases reported and recommending for referral where necessary;
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Monitoring that the annual risk assessment is timeously performed;
Reviewing the risk strategies; and
Evaluating the reports of external and internal audits to advice on the appropriate action.
TheCommitteewaschairedbytheexternalchairperson,CraigSparg,whobringsalotofvaluableexperienceingovernancematters.AllprogrammemanagersareappointedasRiskManagementCommitteemembersastheyaredesignatedriskowners.TheAuditCommitteeadopteditswrittentermsofreferencewhichdealtwithitsmembership,authorityandresponsibilities.Thetermsofreferencearereviewedatleastannuallytoensurerelevance.TheAuditCommitteeandtheRiskManagementCommitteereviewedtheriskmanagementprocesses.Thedepartmenthadfour(4)RiskandEthicsManagementCommitteemeetingsduringtheyear.TheRiskManagementCommitteechairpersonsubmittedreportsaftereachmeetingtotheHODupdatingtheHOD on the status of risk management in the department.
Performance assessment of Risk Management
Thematurity levelsof thedepartment’s riskmanagementhavebeenassessedbyboth theDepartmentofPerformanceManagement and Evaluation (DPME) via (MPAT) and Treasury via the Financial CapabilityModel.TheMPATresultswerereceivedandthedepartmentwasassessedtobeatlevel4whichisthehighestscore and was assessed at level 5 by Treasury which is also the highest score in terms of their own maturity level. The improved maturity of risk management in the department has translated to an improved overall performanceof thedepartment inmanagingtherisks.The improvedexpenditurepatterns, improvement inthe strategic management processes and development and review of policies have been approved through alignment of risk management with performance management systems.
3.3. Fraud and Corruption
In the year under review the following activities were performed under fraud and corruption:
The department has an approved Fraud Prevention Policy, Fraud Prevention Strategy aligned withthe Provincial Fraud Prevention Plan, Investigation Policy, Conflict of Interest Policy and Fraud RiskManagement Implementation Plan.
TheFraudRiskAssessmentwasconductedinthecurrentfinancialyearandmitigationplanswereidentifiedand are addressed or implemented on a continuous basis
Conducted49Anti-FraudAwarenessandEthicsAwarenesscampaigns/sessionsinalltheregionsandheadoffice
TheGiftpolicywasreviewedandcommunicatedtoemployees
TheCodeofConductwascommunicatedtoallemployeesandsignedcopiesweredistributedtonewlyemployedemployeesandfilledonpersonnelfiles
CaseswereinvestigatedastheycomewithinthestipulatedtimeandallcasesreceivedfromNationalAnti-CorruptionHotlinewereinvestigatedandfeedbacksubmittedtoPublicServiceCommission
RiskAssessmentwithFinanceandSupplyChainwasconducted
EthicsworkshopswereconductedwithSupplyChainManagementandFinanceinalltheRegions
The department developed a Whistle Blowing Policy which is aligned with the Provincial Whistle Blowing Policy and customised to talk to the Department of Roads & Public Works.
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TheDepartmentiscurrentlyusingtheNationalAnti-CorruptionHotlineforreportingofallegationsbythepublicand an internal process of reporting allegation of fraud & corruption is also followed. The department has an internalcapacitytodealwithcasesthatarereported.ComplexcasesarereferredtoConsultingcompaniesforinvestigation on DRPW behalf although the department have not had such cases during the year under review. SummaryofthecasereportswerereportedtoRiskManagementCommittee;AuditCommitteeandOfficeofthePremier(OTP).
Below is the summary report of cases received and investigated during the year:
Departmental Fraud & Corruption summary of cases:
HOTLINE WALK IN
Casesbroughtforwardfrompreviousyear. 6 6
Casesreceivedduringtheyear(2016/17). 3 3
TOTAL NUMBER OF CASES IN 2016/17 9 9
ClosedCases. 5 2
PendingCases. 4 7
Summary of Pending Cases
CasesInvestigatedExternally. 0 2
CasesInvestigatedInternally. 4 5
Assessment of Implementation of the Fraud Prevention Plan
The Department of Roads and Public Works was assessed by the Department of Planning Monitoring and Evaluation on the implementation of Fraud Prevention as well as the implementation of Ethics Program. In bothcases,thedepartmentwasassessedandreceivedlevel3asperstandardsetwhichreflectsgoodqualityperformance of these governance practices and compliance with legislation.
3.4. MinimisingConflictofInterest(EthicsManagementprogramme)
The Department of Roads and PublicWorks implemented a process of managing conflict of interests incompliancewiththePolicytoProhibitTradeand/EmploymentbyemployeesoftheEasternCapeProvincialgovernmentwithoutapproval.TheseprocessesincludeFinancialDisclosurebySMSmembers,declarationofinterestbyofficials,declarationsduringthesittingoftheBidCommittees,AuditandRiskCommittees.AgiftregisteriskeptintheofficeoftheHeadofDepartmentandalsointheOfficeoftheRegionalDirectorsinallthe Regions.
The department has taken action against employees that have been found to be trading with the state and those that have registered on the provincial supplier data base. The department had a challenge in identifying employees that are trading with the other public institutions and relied on information that has been received after the event.
However,a requesthasbeenmadetoOfficeof thePremier toassist theDepartment.ProvincialTreasuryissuedaconflictofinterestreportonthe5April2016totheDepartmentwithatotalof144employeesthatwereregisteredontheCentraliseddatabase.TheAccountingofficerthenmadeafollowthroughdisciplinaryprocesses and the impact of that intervention lead to a decrease of the employees that are registered with TreasurywhichhasbeenconfirmedbythereportthatwasissuedbyProvincialTreasuryonthe5April2017
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whichhadonly34employeesoftheDepartmentthatarestillontheCentralisedSupplierDataBase.DPSAinstruction note has also been communicated to employees of the department which communicate the new PublicServiceRegulationsthatprohibittheofficialsfromtradingwithPublicBodies.
3.5. Code of Conduct
AllnewemployeeshavesignedandacknowledgedthereceiptofcopiesoftheCodeofConductastheyarriveinthedepartment.Thedepartmentconducted49ethicsawarenessworkshopsduringthe2016/17financialyear. Unethical behaviour reported is investigated and misconduct cases are reported and appropriate action is taken.
3.6. Health and Environmental Issues
TheDepartment isalsocontinuing inworkingtowardsfullcompliancewithConstructionHealthandSafetylegislation and regulations. During 2016/17 the department continued improving with the appointment of OHS agentsand thesubsequentenforcementofcompliancewith these regulationsbyappointingbuildingsandcivilengineeringcontractorsformostprojects.AllregionsandheadofficecontinuedtoreceivetrainingandimplementationsupportfromtheappointedexperiencedOHSpractitioners.However,continuedchangesandmajorupcomingdevelopmentsintheOHSfieldrequirecontinuedimprovementsintheimplementationofOHSregulations by the department.
3.7. Portfolio Committees
During2016/17financialyearthedepartmentappearedbeforethePortfolioCommitteeonthreeoccasions.Firstlytoconsiderthedepartment’sbudgetvoteon12to17May2016;secondlyon25-28OctobertoconsidertheAnnualreportandonthe28thFebruary2017toconsidertheMid-YearReport.
InrelationtoProgramme1:Administrationnine(9)findingsandrecommendationsweremadebythePortfolioCommittee relating toavarietyofmatters including limitedengagementof thedepartmentondiscussionsrelating to moving the Roads Infrastructure Programme to the Department of Transport; the non-approval of the organogram; failure to attract skilled professionals; high staff turnover rates; control weaknesses; irregularities; failuretoimplementInternalAuditrecommendations;amoratoriumplacedonpurchasingthewhitefleetandofficialsthataretradingwithgovernment.
Most recommendations from the Portfolio Committee were implemented fully or satisfactorily respondedto as per the committee’s requirements. For example, the department allocated resources to consistentlyparticipate on structures that facilitated the relocation of the roads function to the department of Transport; it consistentlyengagedthePCMTontheapprovaloftheAnnualRecruitmentPlanthatincludedthecorecriticalpositions such as engineers, technicians, legal and IT positions as recommended by the committee.TheAnnualRecruitmentPlanwasfinallypartiallyapprovedandmechanismslikeheadhuntingwereemployedtoattract skilled professionals especially in the Roads Infrastructure space.
In caseswhere the nature of the recommendation requires on-going action like reporting to the PortfolioCommittee or disciplinary processes that are still underway or on-going monitoring of implementation ofInternalAudit recommendations forexample, theseactivitiesareontrack.Therecommendationrelating toimprovementofthelevelofInternalAuditorpostsisoutsidethecontrolofthedepartmentasitisawaitingajobevaluationexercisetobeconductedbytheDepartmentofPublicServiceandAdministration(DPSA).
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InProgramme2BuildingInfrastructure,seven(7)findingsandrecommendationsweremadebythePortfolioCommitteerelating toamongstothers, thecapacitationof thePublicWork function,monitoringofprojects,delays inpaymentofsuppliersand issuingofworkorders,under-utilisationofbuildingsand installationoframps to make buildings accessible.
Onthisprogramme,five(5)recommendationsweresatisfactorilyrespondedtoasplansweresubmittedtothecommitteeaspertherecommendation.Two(2)recommendationsareimplementedbutstillinprogress.Theserelate to fast tracking the building of DRPW capacity to function as a nerve centre as well as the installation of access ramps in government buildings.
Ofthefour(4)findingsandrecommendationsmadetoProgramme3inrelationtocapacityissues,projectsthatarenotcompletedontimeandunderspending,three(3)wereimplemented.PostsrequiredtocapacitatetheRoadsfunctionwereprioritisedintheARPandrecruitmentisinprogress,theemergingcontractorsaresupportedforupgradingtohigherlevelsintheCIDBregisterandclosemonitoringofprojectsisanon-goingactivity.
InrelationtotheEPWPprogramme,seven(7)findingsandrecommendationsweremademostlycommendingtheprogrammeondoingwell or improving in someareas.All recommendationswerenotedandplans tosustain the good performance on an on-going basis were presented to the committee.
3.8. SCOPA Resolutions
Ref. No. Findings Recommendations Response by the department Resolved(Yes/No)
(a) The Department disclosed irregular expenditure of R2.4 billion that has accumulated over a number of years and that has not been recovered or written off,asdisclosedin note 23.1 to the financialstatements.Inaddition,irregularexpenditure of R659.6 million was incurred during the current year. The amount is also disclosed in note 23.1tothefinancialstatements.
TheAccountingOfficermustensurethat irregular expenditure that has been accumulated over a period of years is addressed. TheAccountingOfficermustalsotake proactive steps to prevent future irregular expenditure. In addition,actionmustbe taken against the officersresponsiblefor the irregular expenditure. Within 30 days after the adoption of the report,aplanorproof of evidence must be submitted totheCommitteeonhowtheAccountingOfficerwillensurethatsection38(1)(c)(ii)and(h)(iii)ofthePFMAiscompliedwith.
Irregular expenditure to the •amount of R1.8b was condoned byNationalTreasuryduringtheyear.AnamountofR824m has been submitted to ProvincialTreasuryrequestingcondonement. The balance of R635m is being investigated and disciplinary process will be institutedsubjecttotheoutcomesof the investigation.
Circularsaimedatpreventing•SCMweaknessesidentifiedduring the audit that have led to irregular expenditure were issued.
Workshops and training have •been conducted on the new guidelinesonthePPPFAwhichbecameeffectiveon1April2017.
Workshops were conducted on •Irregular Expenditure and the auditfindingsfromtheauditof15/16.
Procurement planning and •general bottlenecks in Supply ChainManagementareastanding agenda item in Top Managementmeetings,whichresulted in reduction in the instances of deviations that were themajorriskareainirregularexpenditure.
Partially resolved. In some cases condonement is awaiting treasury approval,outcomeof the investigations and/orfinalisationof disciplinary processes in cases whereofficialsarefound to be liable in law for the irregular expenditure.
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Ref. No. Findings Recommendations Response by the department Resolved(Yes/No)
DepartmentalCommittee’s•also are more vigilant in the evaluation and award of bids to ensure compliance. This is as a result of the impact of circulars issued,generalawarenessonnon-compliance and disciplinary processes.
The Department has drafted •a systems description on the prevention,identificationandreporting of irregular expenditure.
Aninvestigationwasconducted•whethertherewereofficialsliablein law on the irregular expenditure and the report is attached. In casewhereanofficialliableinlawwasidentifiedletterswereissuedto them.
(b) Disciplinary steps were not taken againstofficialswho made and/or permitted irregular as well as fruitless and wasteful expenditure,asrequiredbysection38(1)(h)(iii)ofthePFMAandTreasuryRegulation 9.1.3.
Appropriatedisciplinary steps must be taken againstofficialswhocontravened the provisions of the PFMAintermsofsection38(1)(h)ofthePFMA.
Investigations were conducted on instanceswhereirregular,fruitlessand wasteful expenditure was incurred.
Eventhoughthereisabacklog,consequencemanagementlettershavebeenissuedtoofficialsthathavebeenidentifiedtohavecausedirregular expenditure in the prior year
The fruitless and wasteful expenditure outcomes have been referredtotheHeadofCorporateServices for recoveries from responsibleofficialsandthirdparties,writeoffswerereferredtoCFO.
Partially resolved. Awaitingconclusionof investigations and /or disciplinary processes to finaliserecoveriesand / or write-offs.
(c) The Department disclosed an amount of R3.6m to be fruitless and wasteful expenditure that has been accumulated over a number of years and that has not been recovered or written off.Inaddition,fruitless and wasteful expenditure of R5.6m incurred during the year under review is included in the amountdisclosed,but it has not been recovered or written off.
TheAccountingOfficermustensurethat accumulated fruitless and wasteful expenditure is recovered from officialsresponsibleor condoned before the end of this financialyear.Areport as proof of evidence must be submitted to the Committeewithin30 days after the tabling of this report.
Atotalof57casesamountingR1.15m,allofwhichweresubjectof litigation were investigated and recommendations ranging from recovery of monies involved to disciplinaryactionagainstofficialsfound culpable were made.
The fruitless and wasteful expenditure outcomes have been referredtotheHeadofCorporateServices for recoveries from responsibleofficialsandthirdparties,writeoffswerereferredtoCFO.
Partially resolved. Awaitingconclusionof investigations and /or disciplinary processes to finaliserecoveriesand / or write-offs.
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Ref. No. Findings Recommendations Response by the department Resolved(Yes/No)
(d) TheCommitteefound that the Department re-stated the corresponding figuresfor2015asa result of errors discovered during 2016inthefinancialstatements of the Department for the year ended 31 March 2015.
TheAccountingOfficermustensure an accurate recording of transactions in line with the requirementsofsection40(1)(a)and(b)ofthePFMA.
The recommendation of the Committeeisnoted.Theinaccuraterecording of transactions was due to the occurrence of restatements in theannualfinancialstatements.Forthe year 2016/17 the Department does not envisage any restatements inthefinancialstatementsunderreview.
No. Material adjustmentswereprocessed for commitments and accruals relating to 2016/17financialyear.
(e) The Department awarded contracts tobidders,basedon preference points that were not allocated and/or calculated in accordance with therequirementsof the Preferential Procurement Policy FrameworkActandits regulations.
TheAccountingOfficermusttakeaction against the officer/sresponsiblefor the awarding of contracts who failed to take precautions. TheAccountingOfficermustalsoensure that the requirementsof Preferential Procurement Policy FrameworkActNo.5of2000areadhered to.
Lettershavebeenissuedtoofficialsthathavebeenidentifiedtohavecaused irregular expenditure in the prior year.
Appropriatecontrolswereputinplace to avoid recurrence.
Yes.
(f) Persons in service of the Department whose close family members,partnersor associates have private or business interests in contracts awarded bytheDepartment,failed to disclose such interest as is requiredbyTreasuryRegulation16A8.4.
TheAccountingOfficermusttake appropriate action against the employees of the Department who failed to disclose their business interests during the year under review.Inaddition,the Executive Council’sdecisiontoprevent government employees from conducting business with the state must be enforced by the AccountingOfficer.
TheprocessofDisciplinaryActionagainstthesaidofficialsison-goingand the process is expedited by Labour Relations Unit.
Fiftyone(51)officialshaveresponded on representations; thirty four(34)havenotyetresponded,recordsofthree(3)officialsarenotfound;contractsof14officialshaveexpiredandthree(3)caseshavebeenfinalised.
Actionhasbeentakenagainstemployees trading with the state and sanctions have been issued.
ConductedEthicsandFraudAwarenessWorkshops.
Initiated individual consultation with officialsidentifiedtobedirectorsofcompanies whose names are listed inCentralisedsupplierdatabase.
Yes.
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Ref. No. Findings Recommendations Response by the department Resolved(Yes/No)
(g) Investigations were not conducted into all allegations of financialmisconductcommitted by officials,asrequiredby Treasury Regulation 4.1.1.
TheAccountingOfficermustensurethat investigations are conducted within a period of 30 days after allegations of financialmisconducthavebeenidentified.Afterwards,thoroughinvestigation disciplinary action must be taken against the responsible officialsandproofof evidence must be presented to the Committeewithin30 days after the tabling of this report.
Actionhasbeentakenagainstemployeeswhocommitfinancialmisconduct during 2015/2016 financialyear.Outofthethirtyfour(34)employeesissuedwithletters,eight(8)caseswerefinalisedandtwentysix(26)casesareinprocess.
Partially resolved.
3.9 Priormodificationstoauditreports
No Nature of qualification,disclaimer, adverse opinion and matters of non-compliance
Progress made in clearing / resolvingthematter*
Financial year in which it firstarose
Measures put in place to prevent recurrence
1 Irregular expenditure.
Irregular expenditure of approximately R 1.8 billion has been condoned in 2016/17 financialyearandadjustedintheannualfinancialstatements.
2010/11 Preventative procedures implemented involved circulation of circulars on identifiedirregularitiesandtrainingofstaffonNationalTreasuryGuidesonirregularexpenditure.
Disciplinary procedures institutedagainstofficialsresponsible for the incurring such irregular expenditure.
2 Fruitless and wasteful expenditure.
Conductedinvestigationsontheincurred fruitless and wasteful expenditure.
R222 000 has been written off after this investigation.
Proposed recoveries from responsibleofficialsamountingto R50 945.
Proposed recoveries from third parties amounting to R899 907.
2016/17 Conductedtrainingofstaffon prevention and detecting Fruitless and wasteful expenditure.
Disciplinary procedures institutedagainstofficialsresponsible for the incurring such Fruitless and Wasteful expenditure.
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3.10 Internal Control Unit
TheunithasbeenoperatingwithtwosectionswhichareGovernanceandLossControl,andduringthethirdquarterPre-Auditwas transferred to theunit.Governancehada staff capacityof six (6) contractworkerswhosecontractscametoendbythe31December2016.TheLossControlsectionhasastaffcapacityofonepermanentemployeeandonecontractworker,atRegionsthefunctionisperformedasanadditionaltasktoofficialsemployedatSupplyChainManagement,AssetandSecurity.
Key Activities: Governance
The department has a total number of 80 policies recorded in the policy register. The table below indicates the status of policies during the year under review.
No Policy Status Number of Policies Policies %
1 Due for review. 27 34%
2 Valid. 16 20%
3 Recently reviewed. 33 41%
4 Newapproved. 1 1%
5 NewDraft. 3 4%
Total 80 100%
Sixteenfinancialrelatedsystemdescriptionshavebeenreviewedintheyearunderreview.
Loss Control
Investigated the reported asset losses and provided recommendations.
Office/Region Reported Cases Finalised Cases Percentage Finalised
HeadOffice 39 24 62%
Sarah Baartman 16 7 44%
JoeGqabi 30 9 30%
O.R Tambo 6 0 0%
Amathole 19 13 68%
AlfredNzo 14 4 29%
InHouseConstruction 67 37 55%
ChrisHani 5 0 0%
Total 196 94 48%
• Provided hands on support to all Regions.
• ConductedtrainingforsecondedLossControlOfficersandLossControlCommitteemembers.
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Pre-Audit
• Provide compliance assurance to orders; and
• Provideexpenditureassurancebyverifyingthefollowingauditassertions:validity,occurrence,accuracyand completeness.
• NumberofOrdersandPaymentsPre-audited
No. Office/Region Payment Orders
1 HeadOffice 8 827 6 300
2 Sarah Baartman 1 388 985
3 O.R Tambo 891 633
4 AlfredNzo 656 466
5 JoeGqabi 878 623
6 In-HouseConstruction 368 261
7 ChrisHani 752 534
8 Amathole 1 142 811
Total 14 902 10 613
3.11. Internal Audit and Audit Committee
INTERNAL AUDIT
TheobjectiveoftheInternalAuditfunctionistoprovidemanagementwithindependent,objectiveassuranceand consulting services designed to add value and to continuously improve the operations of the Department ofRoadsandPublicWorks.Itassiststhedepartmenttoaccomplishitsobjectivesbybringingasystematic,disciplinedapproachtoevaluateandimprovetheeffectivenessofGovernance,RiskManagementandControlprocesses.
Thekeyactivitiesofinternalauditservicesistoevaluatewhetherthedepartment’ssystemofgovernance,riskmanagementandcontrolprocesses,asdesignedbymanagement,isadequateandfunctioninginamannerto ensure that:
Risksareappropriatelyidentifiedandmanaged
Interaction with the various governance groups occurs as needed
Significantfinancial,managerial,andoperationalinformationisaccurate,reliable,andtimely
Employee’s actions are in compliance with policies, standards, procedures, and applicable laws andregulations
Resourcesareacquiredeconomically,usedefficiently,andadequatelyprotected;
Programs,plans,andobjectivesareachieved
Qualityandcontinuousimprovementarefosteredinthedepartment’scontrolprocess
Significant legislative or regulatory issues impacting the department are recognised and addressedappropriately
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Summaryofauditworkdoneduring2016/2017financialyearisasfollows:
Risk based auditsFollow up on management of reportedfindings(followupaudits)
Legislative audits
Consulting activities (requestsfrommanagement and audit committee audits)
Cyclical audits (Consultingactivities)
AlfredNzo.•
ChrisHani.•
Amathole.•
JoeGqabi.•
OR Tambo.•
Sarah Baartman.•
Roads •Infrastructure.
Asset•Management.
Buildings.•
Expanded Public •Works Programme (EPWP).
Strategic •Management Unit.
CorporateServices.•
OfficeoftheCFO.•
In-house •ConstructionUnit.
Information •Communicationand Technology (ICT).
Legal Services.•
Security •Management.
OfficeoftheHOD.•
OfficeoftheMEC.•
Property •Management.
ChrisHani.•
Asset•Management.
SupplyChain•Management.
Buildings.•
Property •Management.
Roads •Infrastructure.
In-house •Construction.
Sarah Baartman. •
In-house •ConstructionUnit.
ChrisHani.•
AlfredNzo.•
JoeGqabi.•
Review •implementation oftheAuditImprovement Plan.
Expanded Public •Works Programme (EPWP).
Asset•Management.
FollowuponAudit•Improvement.
Plan(Followupon•implementation.
ofAuditorGeneralfindings).
Review of •annualfinancialstatements and annual report for 2016financialyear.
Review of •Interimfinancialstatements(Q1,Q2&Q3).
Conditional•grants and transfer payments.
Auditof•governance,riskmanagement and internal control processes.
Inventory •management audit.
Performance •assessments outcomes’audit(ReviewofPerformance Management Development Systems (PMDS).
Review of •Contingentliabilities.
ReviewofSITA•SLA.
Management •of performance assessment tool (MPAT).
Quarterly reviews •on the audit of performance information(Q1,Q2,Q3&Q4).
Dashboard report •review.
The internal audit annual coverage plan was comprehensively implemented and additional work emanated from top management and audit committee resolutions was also completed. The department obtained a ratingscoreof4onMPATresultsonassessmentofaccountabilitymechanisms(AuditCommitteeandinternalaudit arrangements). Internal Audit Services obtained positive results on evaluation by Audit CommitteeandTransversalInternalAuditServices.TheInternalAuditcompliedwiththeInternationalStandardsfortheProfessionalPracticeof InternalAuditors issuedby Instituteof InternalAuditors(IIA).Someof the InternalAuditorscompletedtheLearnershipprogrammes(InternalAuditTechnicianandGeneralInternalAuditor)andweresuccessfulontheirassessmentsbyIIASA.
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AUDIT COMMITTEE
TheobjectiveoftheauditcommitteeistoassisttheAccountingOfficerandMemberofExecutiveCouncilinfulfillingitsoversightresponsibilitiesforthefinancialreportingprocess,thesystemofinternalcontrol,theauditprocess,andthedepartment’sprocessformonitoringcompliancewithlawsandregulationsandthecodeofconductandITGovernancearrangements.
Theauditcommitteeadopteditswrittentermsofreference,whichdealtwith itsmembership,authorityandresponsibilities. The terms of reference are reviewed at least annually to ensure its relevance. The audit committeetermsofreferencedocumentwasacceptedbyauditcommitteeandcompliedwithalltherequirementsofthetermsofreference.Theauditcommitteereviewedriskmanagementprocesses,internalauditactivityandmanagement reports submitted to it and all the reports were discussed during the audit committee meetings. Thedepartmenthadseven(7)meetingsduringtheyear,precededbyRiskManagementCommittee(RMC)andICTGovernanceCommitteemeetings.
MeetingswereheldwithHeadofDepartment(HOD)andMemberofExecutiveCouncil(MEC)andsignificantissues were raised with executive authority.
Theauditcommitteeapprovedall internalauditpolicies,suchasInternalAuditMethodology, InternalAuditCharter(IAC)andarollingthreeyearstrategicandinternalauditannualcoverageplans.TheMemberoftheExecutiveCouncil(MEC),HeadofDepartment(HOD),ChiefFinancialOfficer(CFO),ChiefAuditExecutive(CAE)andtopmanagementofthedepartmentformallyevaluatedthefunctioningoftheAuditCommitteeofthedepartmentandfoundtobecomplyingwithrelevantsectionofPFMAandTreasuryRegulations.Theauditcommittee of the department is effective in discharging its responsibilities.
The table below discloses relevant information on the audit committee members:
Name QualificationsInternal or external member
If internal, position in the depart-ment
Date appointed
Date Resigned
No. of Meetings attended
Mr.S.Ngqwala(Chairperson)
Honours in Bachelor of AccountingScience.
External n/a 01 October 2014
Existing member
7
Mr.T.Zororo(Member)
CertifiedInternalAuditor(CIA),CertifiedinRiskManagementAssurance(CRMA),CertifiedintheGovernanceofEnterpriseIT(CGEIT),CertifiedinRiskand Information Systems Control(CRISC),CertifiedInformationSystemAuditor(CISA),CertifiedInformationSecurityManager(CISM),CertifiedCOBIT5Assessor,PostGraduateDiplomainComputerAuditing(Wits), B.Sc(Honours)InformationSystems(MSU),CharteredInstitute of Secretaries and Administrators(Economics,FinancialAccounting,PrinciplesofMarketing)–CIS.
External n/a 01 October 2014
Existing member
4
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Name QualificationsInternal or external member
If internal, position in the depart-ment
Date appointed
Date Resigned
No. of Meetings attended
Mr. T. Boltman(Member)
CertifiedInternalAuditor(CIA),BTechdegreeinInternalAudit,CertifiedGovernmentAuditingProfessional (CGAP).
External n/a 01 October 2014
Existing member
5
Ms. T. Cumming(Member)
BCom,CTA CharteredAccountant.
External n/a 01 October 2014
Existing member
7
Mr. S. Dibate(Member)
Postgraduate Diploma in Property Development and Management,BTechdegreeinQuantitySurveying,NationalDiplomainBuilding.
External n/a 01 February 2017
Existing member
1
3.12. REPORT OF THE AUDIT COMMITTEE
TheAuditCommitteeispleasedtopresentreportforthefinancialyearended31March2017.
Introduction
TheAuditCommitteeplaysan important role inensuring that thedepartment functionsaccording togoodgovernance, accounting and audit related standards. It also monitors the adoption of appropriate riskmanagement arrangements
Commitment by the department to maintain the highest standards of governance is fundamental to themanagement of public finances and resources. Users want assurance that the department has goodgovernancestructuresinplacetoeffectively,efficientlyandeconomicallyutilizethestateresources,whichisfunded by the tax payers.
Audit Committee members and attendance.
TheAuditCommitteeconsistsofthememberslistedhereunderandhasmetasreflectedbelow.
Name of the members Number of meetings attended Date of appointment
Mr.S.Ngqwala(Chairperson) 7 of 7 01 October 2014
MsT.Cumming(Member) 7 of 7 01 October 2014
Mr.T.Zororo(Member) 4 of 7 01 October 2014
Mr.T.Boltman(Member) 5 of 7 01 October 2014
Mr.S.Dibate(Member) 1 of 2 01 February 2017
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The table below discloses relevant information on the Audit Committee members:
Name QualificationsInternal or external member
If internal, position in the depart-
ment
Date appointed
Date Resigned
No. of Meetings attended
Mr.S.Ngqwala(Chairperson)
Honours in Bachelor of AccountingScience
External n/a 01 October 2014
Existing member
7
Mr.T.Zororo(Member)
CertifiedInternalAuditor(CIA),CertifiedinRiskManagementAssurance(CRMA),CertifiedintheGovernanceofEnterpriseIT(CGEIT),CertifiedinRiskand Information Systems Control(CRISC),CertifiedInformationSystemAuditor(CISA),CertifiedInformationSecurityManager(CISM),CertifiedCOBIT5Assessor,PostGraduateDiplomainComputerAuditing(Wits), B.Sc.(Honours)InformationSystems(MSU),CharteredInstitute of Secretaries and Administrators(Economics,FinancialAccounting,PrinciplesofMarketing)–CIS.
External n/a 01 October 2014
Existing member
4
Mr. T. Boltman(Member)
CertifiedInternalAuditor(CIA),BTechdegreeinInternalAudit,CertifiedGovernmentAuditingProfessional (CGAP).
External n/a 01 October 2014
Existing member
5
Ms. T. Cumming(Member)
BCom,CTACharteredAccountant.
External n/a 01 October 2014
Existing member
7
Mr. S. Dibate(Member)
Postgraduate Diploma in Property Development and Management,BTechdegreeinQuantitySurveying,NationalDiplomainBuilding.
External n/a 01 February 2017
Existing member
1
Mr.C.SpargattendedthemeetingsofAuditCommitteeinthecapacityofChairpersonforbothInformation&CommunicationTechnology(IT)Governance,RiskManagement&EthicsCommittees.
TheAuditCommitteehadseven (7)meetingsduring theyear,precededbyRiskManagementCommittee(RMC)andITGovernanceCommitteemeetings.MeetingswereheldwithMemberofExecutiveCouncil(MEC)andHeadofDepartment(HOD)andsignificantissueswereraisedwiththem.SeparateclosedmeetingswereheldwithAuditor-GeneralofSouthAfrica(AGSA)andinternalauditduringtheyearunderreview.TheAuditCommitteealsohadtwo(2)closedmeetingswithHeadoftheDepartment(HOD).AuditCommitteereportswere submitted toMECandHOD’soffices for escalationof certainmatters. Inmany instancesProvincialTreasury,MECandHODattendedAuditCommitteemeetings.
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Adoption of Audit Committee Terms of Reference
TheAuditCommitteeadopteditswrittentermsofreference,whichdealtwithitsmembership,authorityandresponsibilities.
Thetermsofreferencearereviewedatleastannuallytoensureitsrelevance.TheAuditCommitteereviewedriskmanagementprocesses,internalauditactivityandmanagementreportssubmittedtoitandallthereportswerediscussedduringtheAuditCommitteemeetings.
TheMEC,HOD,Chief FinancialOfficer (CFO),ChiefAudit Executive (CAE) and topmanagement of thedepartment formally evaluated the functioningof theAuditCommitteeof theDepartment and found tobecomplyingwith relevant section ofPFMAandTreasuryRegulations and its termsof reference.TheAuditCommitteeoftheDepartmentiseffectiveindischargingitsresponsibilities.
Summaryofactivitiesduringthefinancialyearunderreview
TheAuditCommitteeapprovedall internalauditpolicies,suchasInternalAuditMethodology,InternalAuditCharter (IAC) and a rolling three year strategic and internal audit annual coverage plan. The risk basedinternal audit annual coverage plans was comprehensively implemented and progress report were presented toAuditCommitteeandrecommendationsforsignificantfindingswerediscussedinthepresenceofprogrammemanagers.AuditCommitteeresolutions/recommendationsinrelationtoaddressingofbothinternalauditandAuditorGeneralreportswerenotfullyimplemented.
Audit Committee responsibility
TheAuditCommitteeexerciseditsoversightroleregardingthefollowing:-
• Internalcontrolsandmanagementofrisks
• InternalAuditActivity
• Reviewandapprovalofannualcoverageandrollingthree(3)yearinternalplans
• Compliancewithlawsandregulations
• FinancialManagementandAnnualReport
• Reviewofauditorgeneralreport
• RiskManagementandFraudPreventionstrategies,and
• InformationCommunication&Technology
Effectiveness of internal control systems
The review of the effectiveness of internal control systems through management reports, internal auditreports,riskmanagementreportsandAuditorGeneralreportsrevealedthatthesystemofinternalcontrolisnotyetmatured.AuditCommitteemaderecommendationstomanagementregardingtheimprovementofthesystemof internalcontrols.However,managementdidnot inall instances implement theafore-mentionedrecommendations.
TheCFOwasputonprecautionarysuspensionandDirector-FinancialAccountingwasappointedtoactasCFO.Consultantswere appointed to assist with the preparation of annual financial statements and auditreadinessduetocapacityrelatedmattersintheOfficeoftheCFO.
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EffectivenessofInternalAuditActivity(IAA)
TheIAAinconsultationwithAuditCommitteereviewedinternalauditcharter,auditcommitteetermsofreference,internal audit methodology and risk based internal audit annual coverage plan and rolling 3-year strategic plan. Theauditcommitteeapprovedall internalauditpolicies,suchasInternalAuditMethodology, InternalAuditCharter(IAC)andarollingthreeyearstrategicandriskbasedinternalauditannualcoverageplans.
The risk based internal audit annual coverage plan was comprehensively implemented and additional work emanated from top management and audit committee resolutions was also completed. Types of audits conductedduring theyearunder reviewentailed riskbasedaudits, followuponmanagementof reportedfindings(followupauditreviews),Legislativeaudits,consultingactivities(requestfrommanagementandauditcommitteeandcyclicalaudits(auditsperformedonaquarterlybasisonPerformanceInformationandInterimFinancialStatements).Thesearedetailedintheinternalauditannualreportfor2016/17financialyear.
Although theplanwas fully implemented, internal audit activityexperiencedstaff shortages.TheOfficeofthe HOD intervened by sourcing out the services of experienced internal audit leaners who were registered with IIA.The IAA fulfilled itssecretariatduties to theauditcommitteeandensured thatmeetingswere runsmoothly.
Thedepartmentobtainedaratingscoreof4onMPATresultsonassessmentofaccountabilitymechanisms(Audit Committee and internal audit arrangements). Internal Audit Services obtained positive results onevaluationbyAuditCommitteeandTransversalInternalAuditServicesandNationalTreasurythroughfinancialmanagement capability model.
TheInternalAuditcompliedwiththeInternationalStandardsfortheProfessionalPracticeofInternalAuditorsissuedby Instituteof InternalAuditors(IIA). IAAperformed itswork independentlywithno interferencebymanagement.SomeoftheInternalAuditorscompletedtheLearnershipprogrammers(InternalAuditTechnicianandGeneralInternalAuditor)andweresuccessfulontheirassessmentsbyIIASA.AllinternalauditorsaremembersoftheIIASA
Risk management processes
TheHeadofDepartmentestablishedRiskManagementandEthicsCommittee(REMC)toexercisecertainresponsibilities,amongstothers:
• Ensure that the annual risk assessment is timeously performed
• Review the risk strategies
• Monitorthedevelopment,implementationandrevisionofthefraudpreventionstrategy
• Monitor and review the fraud cases reported and recommend for referral where necessary.
TheRiskManagement andEthicsCommitteewas appointed byHead ofDepartment during the financialyear.
ThecommitteeischairedbyanexternalchairpersonwhobringsalotofvaluableexperienceinGovernancerelated matters and all programmer managers are appointed as risk management committee members as they are designated risk owners.
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TheAuditCommitteeandtheRiskManagementandEthicsCommitteereviewedriskmanagementprocesses.Allpolicyrelateddocumentsonriskandethicsmanagementwereapproved,suchas,riskmanagementstrategy&policy,fraudpreventionandethicspolicies,riskmanagementandfraudpreventionimplementationplan.
The Head of Department committed management of the Department to comply with all relevant corporate governance processes. Riskmanagement and InternalAudit of the department reports at an appropriatelevel (administratively report to theHeadofDepartmentand functionally to theAuditCommitteeandRiskManagementandEthicsCommittee).
TheriskmanagementunithasbeenassessedthroughMPATbyNationalDepartment:Planning,MonitoringandEvaluationandNationalTreasurythroughfinancialmanagementcapabilitymaturitymodel,andwasfoundtobeeffective.However,itwasnotedthattheriskmanagementunitwasnotfullycapacitated.
Anti-fraud and Corruption
DuringtheyearunderreviewtheAuditCommitteeendorsedfraudpreventionpolicyandstrategy,fraudriskmanagementimplementationplan,giftpolicy,investigationpolicyandconflictofinterestpolicy.
TheAuditCommittee has fulfilled its role of overseeing that incidents of fraud, corruption andnegligenceare given appropriate, and timely attention and followed up through conclusion. This was done throughinterrogationofreportssubmittedbyriskmanagement.TheAuditCommitteereviewedlegalmattersthatcouldhaveasignificantimpactontheDepartment’sfinancialstatementsbasedonreportssubmittedbytheDepartment’sLegalAdvisor.Thedepartmentisstillexperiencingchallengesregardingconsequencemanagement.
The fraud prevention sub-programme of risk management was assessed by department of Performance Management and Evaluation on the implementation of Fraud Prevention strategies and implementation of Ethics management programs and has received positive results, although it needs to improve on EthicsManagement processes.
InformationandCommunicationTechnology(ICT)
The department has an approved ITGovernanceFramework document and an approved ITGovernanceCharter.TheITGovernanceCommitteemeetingswereheldandwerechairedbyanexternal independentpersonandwereregularlyattendedbythechairoftheAuditCommitteeandprioritiesalignedwiththeDPSAICTGovernanceFrameworkhavebeenputinplace.
The department developed and approved a five-year ICT strategy to align ICT operations and investmentspendingtostrategicgoalsofthedepartment.TheICTpoliciesincludingICTsecuritypolicywereapprovedandawarenesssessionsconductedintheregionaloffices.
The department established aDisaster recovery site inEast London and procuredStorageArea network(SAN)InfrastructureforboththeProductionsiteinBhishoandthedisasterrecoverysite.
TheStorageAreaInfrastructurewasprocuredinordertoreplaceobsoleteserversandconsolidateserversinoneinfrastructure.Inabidtoimproveinternalcommunicationwithinthedepartmentincludingregionaloffices,theICTunitdevelopedanIntranetandenhancedthedepartmentalwebsite.
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Thedepartment is in the initialstagesofdevelopingaBusinessContinuityPlan (BCP) thatwill inform theDisasterRecoveryPlan(DRP).TheITgeneralcontrolenvironmenthasimprovedasmorerisksareashavebeen identified througha riskassessmentexerciseand risks identifiedaremanagedandmonitored. Thechallenge of IT staff capacity has not been resolved.
ICTunitperformancewasassessedusingtheManagementPerformanceAssessmentTool(MPAT)isandtheoverallscoreimprovedto3.ThedepartmentappointedChiefInformationOfficer(CIO)toensurethatICTrisksareproperlymanagedandmonitored.TherewasnoticeableimprovementintheareaofICT.
The quality of in-year management and quarterly report
The department reported financial and performance information on a quarterly basis toAudit Committee.The department is still facing challenges in terms of providing credible and complete reports to oversight and assuranceproviders.Thismatterwasescalatedtoexecutiveauthorityofthedepartment.TheMECandHODactedonmattersescalatedtothembyAuditCommittee.
Evaluationofannualreportandannualfinancialstatements
Theauditcommitteehavereviewedtheannualfinancialstatementsandannualperformancereportpreparedby thedepartment.Theauditcommitteerecommendedannualfinancialstatements tobeapprovedby theHead of Department on 30 May 2017.
Auditor General’s report
Wehavereviewedthedepartment’simplementationplanforauditissuesraisedinthepreviousyearandwewerenotsatisfiedthatthemattershavebeenadequatelyresolved.
TheAuditCommittee concursandaccepts the conclusionsof theAuditor-General on theannual financialstatementsandisoftheopinionthattheauditedannualfinancialstatementsbeacceptedandreadtogetherwiththereportoftheAuditor-General.
Mr. Singa NgqwalaChairpersonoftheAuditCommittee26 July 2017
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4. PART D: HUMAN RESOURCE MANAGEMENT
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4. PART D: HUMAN RESOURCE MANAGEMENT
4.1. Introduction
A. The status of human resources in the department
In line with the vision of Public Service on Human Resource Management “Human resource management in thePublicServicewillresultinadiverse,competentandwell-managedworkforce,capableofandcommittedtodeliveringhighqualityservicestothepeopleofSouthAfrica”adoptedin1997,thedepartmentacknowledgesthat one of the most compelling imperatives for human resource management in the workplace today is the alignmentofhumanresourceswiththestrategicandoperationalobjectivesoftheorganisation.
Inlinewiththisacknowledgement,thedepartmenthasmovedtoahumanresourceplanningwhichseekstogobeyondmerelyforecastingthenumberofemployeesrequiredtomeetstrategicobjectivesofthedepartment.
Sincethedepartmentdrawsitsskillsbasefromtheconstructionindustry,whichiscurrentlyexperiencingaboomphasenationallyduetovariousfactors,extrapressureexiststoattractandretaintherequiredskillsforthe department.
Inordertoensurethatthedepartment’shumanresourcesupplyrespondstothecurrentpolicydevelopmentsin thecountryandtodeliveron itsmandate, thedepartmenthas,uptodate,permanentlyappointed3124 employees.
B. Human resource priorities for the year under review and the impact of these.
• FillingofvacantfundedpostswithaspecialfocusonEmploymentEquitytargetsandscarceskills
• Effectiveandefficientimplementationofattractionandretentionpolicy.
• ObtainingsufficientbudgettofillcriticalpostsforMediumTermExpenditureFramework(MTEF)period.
• Embarking on Disability Disclosure campaign.
• Training of women in MMS on leadership skills in preparation to meet the minimum SMS level.
• CoachingandmentoringprogrammesforwomenatMiddleManagementServicelevel.
• ApprovingandrollingoutofHumanResourcepolicies.
• Embarking on the second phase of reviewal and development of HR policies.
• The rollout of Employment Performance Management Development System policy.
• The roll out of youth development through internship and TVET learnership program
• ImplementingSkillsAuditofemployeesinthedepartment
• ImplementingConsequenceManagementframework
• Development of strategies in conjunctionwithWellnessunit to addressemployee challenges, throughconsultation with line managers
C. Workforce planning and key strategies to attract and recruit a skilled and capable workforce.
The HR Plan serves as a strategic tool to guide human resource activities and implementation of strategic goals of the organisation. It is through the Human Resource Plan that the department is able to estimate and manage all kinds of essential human resources that the organisation will need.
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There is currently a shortage of scarce and critical skills to support the department in achieving its goals. There arecertainincumbentswhodonothaveinherenteducationalqualificationsandthroughthebursarysystemthedepartmenthasbeenabletodeveloptherequiredskillsandappointtheincumbentsoncontractbasis.
ThedepartmenthasengagedanumberofcategorieswithintheEngineeringCouncilofSouthAfrica(ECSA)toassistemployeesintheOSDwhoarenotfullyqualifiedandregisteredtoachievetheirqualificationandregistration.
ThedepartmenthasalsoconductedaSkillsAuditofitsemployeesfromlevel9-15withanintentionofidentifyingskillsgap,makenecessaryinterventionsincludingtrainingandproperplacement.Thischallengeisgoingtobeaddressedbybursaryawardsandidentificationofpropertrainingthatwilltargetthoseemployeeswithoutrequiredqualificationsandcompetencies.
D. Employee performance management.
The linksbetween theorganisationalandemployeeperformanceare improvingbecause thedepartment’sstrategy is gradually being cascaded systematically to components. The year under review has been marked withthestrategicalignmentofallPerformanceAgreementsoftheSMSwiththatofHeadofDepartment.Thedepartmentconductedtrainingandawareness inregions includingHeadOfficeonEmployeePerformanceManagement. The purpose was to ensure that employees in the department understand the provisions of the policy.
Performance reviews are conducted by supervisors on a quarterly basis resulting in identification andcorrection of discrepancies and inconsistencies by the time annual reviews are conducted. The moderation ofassessmentsbythePMDSCommitteeensuresalignmentbetweenindividualevaluationsandtheAnnualPerformancePlanperformance,therebyensuringthatdeservingemployeesreceivepayprogressionandinsomecases,performancebonuses.
E. Employee wellness programmes.
Staff in the department generally suffer from high levels of stress especially in the support programmes due to increasing national and provincial demands to improve service delivery. The department has established a fully-fledged integratedEmployeeHealth andWellnessProgramme in linewith theProvincialWellnessPolicyandNationalguidelines.TheDirectoratewasassessedbytheDepartmentofPlanningMonitoringandEvaluation and was found to be fully compliant with all Wellness programs.
F. Highlight achievements and challenges faced by the department, as well as future human resource plans /goals.
F.1 Achievements
• The approval of the following HR policies:Termination PolicyBursary PolicyAttractionandretentionEmploymentEquitySafety and HealthSocial ResponsibilityWellness Management
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AppointmenttoActUniformandProtectiveClothing
• HRM embarked on Disability Disclosure campaigns across the department
• HRMhastrained49MMSandAssistantManagersonathreeyearManagementDevelopmentProgramme.
• Department received an award as the best institution in the implementation of Internship and TVET learnershipduringthe2016/17NationalSkillsConference.
• Departmentobtainedapprovaloftheorganisationalstructure,with01September2016astheimplementationdate of the structure.
• Department have structured engagement through Labour Management Forum and have managed to have labour peace in the organisation.
F.2 Challenges
• The department is still in the process of implementation of the structure with person to post matching still being a challenge due to a number of permanent employees appointed additional to establishment.
• The department still has a challenge of recruiting scarce skills when the posts are advertised. The department has since embarked on a head hunting process through advertising agencies.
• ThebudgetallocatedforCompensationofEmployees(COE)isunabletomeetthepriorityhumanresourceneeds,asaresult,aprioritisationprocesshasbeenembarkedoninordertodeveloptheAnnualRecruitmentPlan.
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ees
Cos
t per
Em
ploy
ee
(R’000)
Empl
oym
ent
Administration
5
70 1
12
359
047
00
62.98%
308
1 16
5Ex
pand
ed p
ublic
wor
ks
prog
ram
me
588
947
101
613
00
17.25%
701
448
Publ
ic w
orks
in
frast
ruct
ure
1 35
8 92
235
3 67
70
026.03%
311
1 13
6
Tran
spor
t inf
rast
ruct
ure
2
077
878
30
1 09
10
014.49%
240
1 25
4To
tal a
s on
Fin
anci
al
System
s(BAS)
4 5
95 8
59
1 11
5 42
83
781
024
.27%
223
5 00
3
100
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
TAB
LE 4
.2.2
. Per
sonn
el c
osts
by
sala
ry b
ands
for t
he p
erio
d 1
Apr
il 20
16 a
nd 3
1 M
arch
201
7
Sala
ry B
ands
Com
pens
atio
n of
Em
ploy
ees
Cos
t inc
ludi
ng
Transfers(R’000)
Perc
enta
ge o
f To
tal P
erso
nnel
C
ost f
or
Dep
artm
ent
Aver
age
Com
pens
atio
n C
ost p
er E
mpl
oyee
(R)
Tota
l Per
sonn
el
Cos
t for
D
epar
tmen
t in
clud
ing
Goo
ds
and
Serv
ices
(R’000)
Num
ber o
f Em
ploy
ees
Contract(Levels1-2)
19 2
1699.65%
600
509
19 2
8432
Contract(Levels13-16)
4 69
496.96%
1 56
4 77
54
842
3Contract(Levels3-5)
9 19
299.78%
3 06
3 96
19
212
3Contract(Levels6-8)
56 2
3699.54%
464
761
56 4
9412
1Contract(Levels9-12)
38 3
0297.64%
911
960
39 2
3042
ContractOther
54 1
4499.65%
34 6
1954
335
1564
Highlyskille
dproduction(Levels6-8)
350
103
97.41%
335
992
359
406
1042
Highlyskille
dsupervision(Levels9-12)
272
694
94.99%
692
118
290
573
394
Lowerskilled(Levels1-2)
50 7
1194.78%
126
148
53 5
0740
2Pe
riodi
cal R
emun
erat
ions
00.00%
013
485
Seniormanagem
ent(Levels13-16)
46 6
2295.57%
717
255
48 7
8465
Skille
d(Levels3-5)
241
782
96.50%
193
426
250
561
1250
TOTA
L1
143
698
96.6
9%22
8 60
21
182
859
5003
101
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
TAB
LE 4
.2.3
Sal
arie
s, O
vert
ime,
Hom
e O
wne
rs A
llow
ance
and
Med
ical
Ass
ista
nce
by p
rogr
amm
e fo
r the
per
iod
1 A
pril
2016
and
31
Mar
ch 2
017
Prog
ram
me
Sala
ries
Ove
rtim
eH
ome
Ow
ners
A
llow
ance
M
edic
al A
id
Sala
ries
(R’000)
Sala
ries
as %
of
Pers
onne
l C
ost
Am
ount
(R’000)
Ove
rtim
e as
% o
f Pe
rson
nel
Cos
t
Am
ount
(R’000)
HO
A as
% o
f Pe
rson
nel
Cos
ts
Am
ount
(R’000)
Med
ical
A
id a
s a
% o
f pe
rson
nel
cost
s
Tota
l Pe
rson
nel
Cos
t per
Sa
lary
B
and
(R’000)
Administration
257
804
75.4
5 63
31.
79
460
2.5
14 6
913.
837
7 33
8Ex
pand
ed p
ublic
wor
ks
prog
ram
me
82 7
3181
.296
0.1
1 38
21.
32
589
2.3
104
585
Publ
ic w
orks
infra
stru
ctur
e25
2 76
472
.815
60.
113
389
3.6
12 8
273.
436
7 91
2Tr
ansp
ort i
nfra
stru
ctur
e21
4 27
169
.276
70.
215
055
4.6
14 2
774.
433
3 02
4TO
TAL
807
570
73.3
6 65
10.
639
285
3.3
44 3
843.
71
182
859
*Note:
Em
ploy
ee c
osts
incl
udin
g so
me
good
s an
d se
rvic
es
TAB
LE 4
.2.4
- Sa
larie
s, O
vert
ime,
Hom
e O
wne
rs A
llow
ance
and
Med
ical
Aid
by
Sala
ry B
and
Sa
lary
Ban
dsSa
larie
s (R’000)
Sala
ries
as %
of
Pers
onne
l C
ost
Ove
rtim
e (R’000)
Ove
rtim
e as
% o
f Pe
rson
nel
Cos
t
HO
A (R’000)
HO
A as
% o
f Pe
rson
nel
Cos
t
Med
ical
A
ss.
(R’000)
Med
ical
A
ss.
as %
of
Pers
onne
l C
ost
Tota
l Pe
rson
nel
Cos
t per
Sa
lary
B
and
(R’000)
Contract(Levels1-2)
13 7
9198
210.
1-
--
-19
284
Contract(Levels13-16)
2 93
487
.9
-
-
50.
19
0.2
4 84
2Contract(Levels3-5)
6 62
799
.7-
--
--
-9
212
Contract(Levels6-8)
39 0
3996
.587
71.
8-
--
-56
494
Contract(Levels9-12)
26 0
6495
.517
80.
4-
-62
0.2
39 2
30ContractOther
52 6
6998
.973
0.1
--
--
54 3
35H
ighl
y sk
illed
prod
uctio
n (Levels6-8)
247
757
68.9
2 87
21
13 7
203.
819
869
5.5
359
406
102
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Sala
ry B
ands
Sala
ries
(R’000)
Sala
ries
as %
of
Pers
onne
l C
ost
Ove
rtim
e (R’000)
Ove
rtim
e as
% o
f Pe
rson
nel
Cos
t
HO
A (R’000)
HO
A as
% o
f Pe
rson
nel
Cos
t
Med
ical
A
ss.
(R’000)
Med
ical
A
ss.
as %
of
Pers
onne
l C
ost
Tota
l Pe
rson
nel
Cos
t per
Sa
lary
B
and
(R’000)
Hig
hly
skille
d su
perv
isio
n (Levels9-12)
190
340
70.9
1 29
20.
53
568
1.3
7 49
72.
728
7 07
1
Lowerskilled(Levels1-2)
34 9
7566
.314
50.
24
221
8.1
2 81
55.
253
507
Perio
dica
l Rem
uner
atio
ns
13
4Se
niormanagem
ent(Levels
13-16)
29 5
5478
.6-
- 57
00.
870
31.
448
784
Skille
d(Levels3-5)
163
820
65.4
1 19
40.
517
201
6.8
13 4
295.
225
0 56
1TO
TAL
807
570
73.3
6 65
10.
639
285
3.3
44 3
843.
71
182
859
4.3.
EM
PLO
YMEN
T A
ND
VA
CA
NC
IES
TAB
LE 4
.3.1
. – E
mpl
oym
ent a
nd v
acan
cies
by
prog
ram
me
as o
n 31
Mar
ch 2
017
Prog
ram
me
Num
ber o
f Pos
ts
on a
ppro
ved
esta
blis
hmen
t
Num
ber o
f Pos
ts
Fille
dVa
canc
y R
ate
(Includ
esFrozen
Posts)
Num
ber o
f em
ploy
ees
addi
tiona
l to
the
esta
blis
hmen
tAd
ministration,permanent
1,676
1,101
34.3
144
8Expandedpublicworksprogram
me,permanent
1,784
1,427
20.0
11,309
Publicworksinfrastructure,permanent
1,734
1,136
34.4
920
7Transportinfrastructure,permanent
2,066
1,254
39.3
018
0TO
TAL
7,26
04,
918
32.2
62,144*n
ote
*Not
e To
tal a
dditi
onal
to e
stab
lishm
ent i
s m
ade
up o
f con
tract
em
ploy
ees
and
580
perm
anen
t em
ploy
ees
addi
tiona
l to
the
esta
blis
hmen
t as
a re
sult
of th
e ne
w s
truct
ure
103
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
TAB
LE 4
.3.2
Em
ploy
men
t and
vac
anci
es b
y sa
lary
ban
d as
on
31 M
arch
201
7
Sala
ry B
and
Num
ber o
f Pos
tsN
umbe
r of P
osts
Fi
lled
Vaca
ncy
Rat
e (In
clud
esFrozen
Posts)
Num
ber o
f Pos
ts
Fille
d A
dditi
onal
to
the
Esta
blis
hmen
t01Low
erSkilled(Levels1-2),P
ermanent
1,112
402
63.8
523
02Skilled(Levels3-5),P
ermanent
1,874
1,250
33.3
014
1
03HighlySkille
dProduction(Levels6-8),P
ermanent
1,750
1,042
40.4
615
3
04HighlySkille
dSu
pervision(Levels9-12),Pe
rmanent
681
394
42.1
468
05SeniorM
anagem
ent(Levels13-16),P
ermanent
7865
16.6
77
09Other,P
ermanent
1,564
1,564
01,564
10Contract(Levels1-2),Fixedterm
3232
032
11Contract(Levels3-5),Fixedterm
33
03
12Contract(Levels6-8),Fixedterm
121
121
011
6
13Contract(Levels9-12),Fixedterm
4242
037
14Contract(Levels13-16),Fixedterm
33
00
TOTA
L7,260*note
4,91
832
.26
2,14
4
* Not
e: T
he re
port
com
es a
t the
tim
e w
hen
the
depa
rtmen
t had
two
orga
nisa
tiona
l stru
ctur
es w
ithin
the
sam
e fin
anci
al p
erio
d.
TAB
LE 4
.3.3
– E
mpl
oym
ent a
nd v
acan
cies
by
criti
cal o
ccup
atio
ns a
s on
31
Mar
ch 2
017
Crit
ical
Occ
upat
ions
Num
ber o
f Pos
ts
on a
ppro
ved
esta
blis
hmen
t
Num
ber o
f Pos
ts
Fille
dVa
canc
y R
ate
Num
ber o
f Pos
ts
filledAdd
ition
alto
th
e Es
tabl
ishm
ent
Administrativerelated,Permanent
541
378
30.1
325
1Allartisansinthebuildingmetalmachineryetc.,
Perm
anen
t 63
145
927
.26
11
Appraisers-valuersandrelatedprofessionals,
Perm
anen
t 70
3944
.29
8
Architectstownandtrafficplanners,P
ermanent
3319
42.4
210
104
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Crit
ical
Occ
upat
ions
Num
ber o
f Pos
ts
on a
ppro
ved
esta
blis
hmen
t
Num
ber o
f Pos
ts
Fille
dVa
canc
y R
ate
Num
ber o
f Pos
ts
filledAdd
ition
alto
th
e Es
tabl
ishm
ent
Artisanprojectandrelatedsuperintendents,P
ermanent
6030
508
Auxiliaryandrelatedworkers,P
ermanent
3011
63.3
34
Boilerandrelatedoperators,Permanent
44
00
Buildingandotherpropertycaretakers,Permanent
1917
10.5
35
Busandheavyvehicledrivers,Permanent
118
103
12.7
12
Cartographersandsurveyors,P
ermanent
81
87.5
00
Cartographicsurveyingandrelatedtechnicians,
Perm
anen
t 24
1441
.67
6
Cleanersinofficesworkshopshospitalsetc.,Pe
rmanent
268
124
53.7
326
Clientinformclerks(switchboard,receptionist,
informationclerks),Pe
rmanent
11
00
Com
municationandinformationrelated,Permanent
2212
45.4
53
Com
munitydevelopmentw
orkers,P
ermanent
11
00
Com
puterprogram
mers.,P
ermanent
11
00
Earthmovingandrelatedplantoperators,P
ermanent
4428
36.3
61
Engineeringsciencesrelated,Permanent
234
128
45.3
037
Engineersandrelatedprofessionals,Permanent
4022
456
Financeandeconom
icsrelated,Permanent
2515
407
Financialandrelatedprofessionals,Permanent
111
7631
.53
11Financialclerksandcreditcontrollers,P
ermanent
214
142
33.6
428
Firefightingandrelatedworkers,P
ermanent
22
00
HeadofDepartment/chiefexecutiveofficer,P
ermanent
51
800
Housekeeperslaundryandrelatedworkers,P
ermanent
22
00
Hum
an re
sour
ces
& or
gani
satio
nal d
evel
opm
ent &
relatedprofessionals,Permanent
9162
31.8
710
Hum
anresourcesclerks,P
ermanent
154
9637
.66
28Hum
anresourcesrelated,Permanent
121
6149
.59
10
105
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Crit
ical
Occ
upat
ions
Num
ber o
f Pos
ts
on a
ppro
ved
esta
blis
hmen
t
Num
ber o
f Pos
ts
Fille
dVa
canc
y R
ate
Num
ber o
f Pos
ts
filledAdd
ition
alto
th
e Es
tabl
ishm
ent
Informationtechnologyrelated,Permanent
53
400
Inspectorsofapprenticesworksandvehicles,
Perm
anen
t 99
6435
.35
7
Languagepractitionersinterpreters&othercom
munity,
Perm
anen
t 1
10
1
Legalrelated,P
ermanent
22
00
Librarymailandrelatedclerks,P
ermanent
4120
51.2
24
Lightvehicledrivers,Permanent
5633
41.0
70
Logisticalsupportpersonnel,Pe
rmanent
254
118
53.5
431
Material-recordingandtransportclerks,Permanent
9261
33.7
018
Messengersportersanddeliverers,Permanent
389
76.3
24
MiningGeology&Geographical&relatedTechnicians,
perm
anen
t1
00
0
Motorvehicledrivers,Permanent
4118
56.1
02
Otheradm
inistration&relatedclerksandorganisers,
Perm
anen
t 33
421
934
.43
175
Otheradm
inistrativepolicyandrelatedofficers,
Perm
anen
t 71
5423
.94
9
Otherinformationtechnologypersonnel,P
ermanent
2812
57.1
45
Otheroccupations,P
ermanent
22
01
Printingmanagem
entandsupervisorypersonnel,
Perm
anen
t 7
70
1
Productionadvisers:factories,Permanent
229
217
5.24
37Q
uant
ity s
urve
yors
& re
late
d pr
ofes
sion
s no
t cla
ss
elsewhere,P
ermanent
5528
49.0
916
Regulatoryinspectors,P
ermanent
11
01
Riskmanagem
entandsecurityservices,Permanent
2119
9.52
6Roadsuperintendents,P
ermanent
2323
02
106
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Crit
ical
Occ
upat
ions
Num
ber o
f Pos
ts
on a
ppro
ved
esta
blis
hmen
t
Num
ber o
f Pos
ts
Fille
dVa
canc
y R
ate
Num
ber o
f Pos
ts
filledAdd
ition
alto
th
e Es
tabl
ishm
ent
Roadtradeworkers.,Pe
rmanent
73
57.1
40
Roadworkers,P
ermanent
1,024
635
37.9
973
Safetyhealthandqualityinspectors,P
ermanent
94
55.5
61
Secretaries&otherkeyboardoperatingclerks,
Perm
anen
t 77
5331
.17
5
Securityguards,P
ermanent
2314
39.1
30
Securityofficers,Permanent
199
116
41.7
114
Seniormanagers,Permanent
5345
15.0
95
Tradelabourers,Permanent
1,038
740
28.7
170
9Tradequalitycontrollers,P
ermanent
11
01
Traderelated,Permanent
549
545.
000.
7354
4Waterplantandrelatedoperators,Permanent
22
00
WorkPlanners,permanent
30
00
TOTA
L7,
260
4,91
832
.26
2,14
4
4.4
FILL
ING
OF
SMS
POST
S
TAB
LE 4
.4.1
SM
S po
st in
form
atio
n as
on
31 M
arch
201
7
SM
S Le
vel
Tota
l num
ber o
f fu
nded
SM
S po
sts
Tota
l num
ber o
f SM
S po
stsfilled
%ofS
MSpo
stsfilled
Tota
l num
ber o
f SM
S po
sts
vaca
nt%
of S
MS
post
s va
cant
Sala
ry le
vel 1
62
210
0%0
0
Sala
ry le
vel 1
53
310
0%0
0
Sala
ry L
evel
14
1310
77%
323
%
Sala
ry L
evel
13
6657
86%
914
%
107
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
TAB
LE 4
.4.2
SM
S po
st in
form
atio
n as
on
30 S
epte
mbe
r 201
6
SMS
Leve
l To
tal n
umbe
r of
fund
ed S
MS
post
sTo
tal n
umbe
r of S
MS
postsfilled
%ofS
MSpo
stsfilled
Tota
l num
ber o
f SM
S po
sts
vaca
nt%
of S
MS
post
s va
cant
Sala
ry le
vel 1
62
2100%
00
Sala
ry le
vel 1
53
3100%
00
Sala
ry L
evel
14
1310
77%
323%
Sala
ry L
evel
13
6656
85%
1015%
TAB
LE 4
.4.3
Adv
ertis
ing
and
fillin
g of
SM
S po
sts
for t
he p
erio
d 1
Apr
il 20
16 a
nd 3
1 M
arch
201
7
SMS
Leve
l A
dver
tisin
gFi
lling
of P
osts
N
umbe
r of v
acan
cies
pe
r lev
el a
dver
tised
in
6 m
onth
s of
bec
omin
g va
cant
Num
ber o
f vac
anci
es p
er
levelfilledin6mon
thsof
beco
min
g va
cant
Num
ber o
f vac
anci
es p
er
levelnotfilledin6mon
ths
butfi
lledin12mon
ths
Dire
ctor
-gen
eral
/ Hea
d of
Dep
artm
ent
00
0Sa
lary
leve
l 16
00
0Sa
lary
leve
l 15
00
0Sa
lary
Lev
el 1
41
01
Sala
ry L
evel
13
10
1TO
TAL
20
2
Tabl
e 4.
4.4
reas
ons
for n
ot h
avin
g co
mpl
ied
with
the
fillin
g of
fund
ed v
acan
t SM
S- A
dver
tised
with
in tw
elve
mon
ths
and
fille
d w
ithin
12
mon
ths
afte
r be
com
ing
vaca
nt fo
r the
per
iod
1 A
pril
2016
and
31
Mar
ch 2
017
Rea
sons
for v
acan
cies
not
adv
ertis
ed w
ithin
twel
ve m
onth
sM
orat
oriu
m o
n ap
poin
tmen
t with
in th
e pr
ovin
ce d
ue to
bud
get c
onst
rain
ts•Nosuitablecandidatesforscarceskillscategoryposts
• Reasonsfo
rvacanciesnotfilledwith
intw
elvemon
ths
Mor
ator
ium
on
appo
intm
ent w
ithin
the
prov
ince
due
to b
udge
t con
stra
ints
•Nosuitablecandidatesforscarceskillscategoryposts
•
108
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Tabl
e 4.
4.5
Dis
cipl
inar
y st
eps
take
n fo
r no
t com
plyi
ng w
ith th
e pr
escr
ibed
tim
efra
mes
for
fillin
g SM
S po
sts
with
in 1
2 m
onth
s fo
r th
e pe
riod
1 A
pril
2016
and
31
Mar
ch 2
017
Rea
sons
for v
acan
cies
not
adv
ertis
ed w
ithin
six
mon
ths
Nodisciplinarystepshavebeentakenduetomoratoriumonappointmentw
ithintheprovinceduetobudgetconstraints
• Rea
sons
for v
acan
cies
not
adv
ertis
ed w
ithin
six
mon
ths
Mor
ator
ium
on
appo
intm
ent w
ithin
the
prov
ince
due
to b
udge
t con
stra
ints
• 4.5.
JO
B E
VALU
ATIO
N
TAB
LE 4
.5.1
Job
Eva
luat
ion
by S
alar
y ba
nd fo
r the
per
iod
1 A
pril
2016
and
31
Mar
ch 2
017
Sala
ry B
and
Num
ber o
f Po
sts
on
appr
oved
es
tabl
ishm
ent
Num
ber
of J
obs
Eval
uate
d
% o
f Pos
ts
Eval
uate
dPo
sts
Upg
rade
dPo
sts
Dow
ngra
ded
Num
ber
% o
f U
pgra
ded
Post
s Ev
alua
ted
Num
ber
% o
f D
owng
rade
d Po
sts
01Low
erSkilled(Levels1-2)
1112
169
15.2
00
00
002Skilled(Levels3-5)
1874
467
24.9
20
00
003
Hig
hly
Skille
d Pr
oduc
tion
(Levels6-8)
1750
573.
260
00
0
04 H
ighl
y Sk
illed
Supe
rvis
ion
(Levels9-12)
681
172.
502
11.7
60
0
05 S
enio
r Man
agem
ent S
ervi
ce
BandA
611
1.64
00
00
06 S
enio
r Man
agem
ent S
ervi
ce
Band
B14
00
00
00
07 S
enio
r Man
agem
ent S
ervi
ce
BandC
20
00
00
0
08 S
enio
r Man
agem
ent S
ervi
ce
Band
D1
00
00
00
09 O
ther
1564
00
00
00
10Contract(Levels1-2)
320
00
00
0
109
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Sala
ry B
and
Num
ber o
f Po
sts
on
appr
oved
es
tabl
ishm
ent
Num
ber
of J
obs
Eval
uate
d
% o
f Pos
ts
Eval
uate
dPo
sts
Upg
rade
dPo
sts
Dow
ngra
ded
Num
ber
% o
f U
pgra
ded
Post
s Ev
alua
ted
Num
ber
% o
f D
owng
rade
d Po
sts
11Contract(Levels3-5)
30
00
00
012Contract(Levels6-8)
121
00
00
00
13Contract(Levels9-12)
420
00
00
014ContractBandA
20
00
00
017ContractBandD
10
00
00
0TO
TAL
7260
711
9.79
20.
280
0
TAB
LE 4
.5.2
Pro
file
of e
mpl
oyee
s w
hose
sal
ary
posi
tions
wer
e up
grad
ed d
ue to
thei
r pos
ts b
eing
upg
rade
d fo
r the
per
iod
1 A
pril
2016
and
31
Mar
ch
2017 Gen
der
Afr
ican
Asi
anC
olou
red
Whi
teTo
tal
Fem
ale
00
00
0M
ale
00
00
0TO
TAL
00
00
0
Empl
oyee
s w
ith a
Dis
abilit
y0
00
00
TAB
LE 4
.5.3
– E
mpl
oyee
s w
ith s
alar
y le
vels
hig
her t
han
thos
e de
term
ined
by
job
eval
uatio
n by
occ
upat
ion
for t
he p
erio
d 1
Apr
il 20
16 a
nd 3
1 M
arch
20
17 Occ
upat
ion
Num
ber o
f em
ploy
ees
Job
eval
uatio
n le
vel
Rem
uner
atio
n le
vel
Rea
son
for d
evia
tion
N/A
00
0N/A
N/A
00
0N/A
Totalnum
berofemployeeswhosesalariesexceededtheleveldeterminedbyjobevaluation
N/A
Perc
enta
ge o
f tot
al e
mpl
oyed
N/A
00
N/A
110
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
TAB
LE 4
.5.4
Pro
file
of e
mpl
oyee
s w
ho h
ave
sala
ry le
vels
hig
her
than
thos
e de
term
ined
by
job
eval
uatio
n fo
r th
e pe
riod
1 A
pril
2016
and
31
Mar
ch
2017 Gen
der
Afr
ican
Asi
anC
olou
red
Whi
teTo
tal
Fem
ale
10
00
1M
ale
10
00
1TO
TAL
20
00
2
Empl
oyee
s w
ith a
Dis
abilit
y0
00
00
4.6
EMPL
OYM
ENT
CH
AN
GES
Tabl
e 4.
6.1
Ann
ual t
urno
ver r
ates
by
sala
ry b
and
for t
he p
erio
d 1
Apr
il 20
16 a
nd 3
1 M
arch
201
7
Sala
ry B
and
Num
ber o
f em
ploy
ees
at b
egin
ning
of p
erio
d 01
Apr
il 20
16
App
oint
men
ts a
nd
tran
sfer
s in
to th
e de
part
men
t
Term
inat
ions
and
tr
ansf
ers
out o
f the
de
part
men
t
Turn
over
Rat
e
01Low
erSkilled(Levels1-2)P
ermanent
662
567
1.06
02Skilled(Levels3-5)P
ermanent
1209
1596
7.94
03HighlySkille
dProduction(Levels6-8)P
ermanent
1009
145
4.46
04HighlySkille
dSu
pervision(Levels9-12)
Perm
anen
t36
210
287.
73
05SeniorM
anagem
entS
erviceBandAPe
rmanent
390
00
06 S
enio
r Man
agem
ent S
ervi
ce B
and
B Pe
rman
ent
110
19.
09
07SeniorM
anagem
entS
erviceBandCPermanent
30
00
08 S
enio
r Man
agem
ent S
ervi
ce B
and
D P
erm
anen
t1
00
009
Oth
er P
erm
anen
t15
4979
976
949
.64
10Contract(Levels1-2)fixed-term
171
012
573
.10
11Contract(Levels3-5)fixed-term
580
5493
.10
12Contract(Levels6-8)fixed-term
205
2682
40.0
013Contract(Levels9-12)fixed-term
751
2837
.33
111
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Sala
ry B
and
Num
ber o
f em
ploy
ees
at b
egin
ning
of p
erio
d 01
Apr
il 20
16
App
oint
men
ts a
nd
tran
sfer
s in
to th
e de
part
men
t
Term
inat
ions
and
tr
ansf
ers
out o
f the
de
part
men
t
Turn
over
Rat
e
14ContractBandAfixed-term
50
480
.00
15ContractBandBfixed-term
20
150
.00
17ContractBandDfixed-term
10
00
TOTA
L53
6290
812
4023.13*notes
*notesthehighstaffturnoveriscausedbyinternsandcontractsthatcam
eintoendindifferentenddatesduringthefinancialyear.
TAB
LE 4
.6.2
Ann
ual t
urno
ver r
ates
by
criti
cal o
ccup
atio
n fo
r the
per
iod
1 A
pril
2016
and
31
Mar
ch 2
017
Crit
ical
occ
upat
ion
Num
ber o
f em
ploy
ees
at b
egin
ning
of p
erio
d A
pril
2016
App
oint
men
ts a
nd
tran
sfer
s in
to th
e de
part
men
t
Term
inat
ions
and
tr
ansf
ers
out o
f the
de
part
men
t
Turn
over
Rat
e
Administrativerelatedpermanent
409
160
409.
78Allartisansinthebuildingmetalmachineryetc.
Perm
anen
t46
914
398.
32
Appraisers-valuersandrelatedprofessionals,
perm
anen
t41
02
4.88
Architectstownandtrafficplanners,permanent
223
418
.18
Artisanprojectandrelatedsuperintendents,
perm
anen
t32
01
3.13
Auxiliaryandrelatedworkers,permanent
110
00
Boilerandrelatedoperators,permanent
40
00
Buildingandotherpropertycaretakers,permanent
190
210
.53
Busandheavyvehicledrivers,permanent
109
05
4.59
Cartographersandsurveyors,permanent
10
00
Cartographicsurveyingandrelatedtechnicians,
perm
anen
t14
00
0
Charteredaccountantspermanent
10
110
0
112
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Crit
ical
occ
upat
ion
Num
ber o
f em
ploy
ees
at b
egin
ning
of p
erio
d A
pril
2016
App
oint
men
ts a
nd
tran
sfer
s in
to th
e de
part
men
t
Term
inat
ions
and
tr
ansf
ers
out o
f the
de
part
men
t
Turn
over
Rat
e
Cleanersinofficesworkshopshospitalsetc.
Perm
anen
t19
20
6332
.81
Clientinformationclerks(switchboard,reception
informationclerks)permanent
10
00
Com
municationandinformationrelated,permanent
120
00
Com
munitydevelopmentw
orkers,permanent
10
00
Com
puterprogram
mers.Permanent
10
00
Earth
mov
ing
and
rela
ted
plan
t ope
rato
rs p
erm
anen
t27
20
0En
gine
erin
g sc
ienc
es re
late
d pe
rman
ent
136
27
5.15
Engi
neer
s an
d re
late
d pr
ofes
sion
als
perm
anen
t23
01
4.35
Fina
nce
and
econ
omic
s re
late
d pe
rman
ent
190
421
.05
Fina
ncia
l and
rela
ted
prof
essi
onal
s pe
rman
ent
115
040
34.7
8Fi
nanc
ial c
lerk
s an
d cr
edit
cont
rolle
rs p
erm
anen
t15
02
74.
67Firefightingandrelatedworkerspermanent
20
00
Headofdepartment/chiefexecutiveofficerpermanent
10
00
Hou
seke
eper
s la
undr
y an
d re
late
d w
orke
rs
perm
anen
t2
00
0
Hum
an re
sour
ces
& or
gani
satio
nal d
evel
opm
ent &
relatedprofessionals,permanent
656
710
.77
Hum
an re
sour
ces
cler
ks p
erm
anen
t11
60
1916
.38
Hum
an re
sour
ces
rela
ted
perm
anen
t66
18
12.1
2In
form
atio
n te
chno
logy
rela
ted
perm
anen
t3
00
0In
spec
tors
of a
ppre
ntic
es w
orks
and
veh
icle
s pe
rman
ent
733
810
.96
Lang
uage
pra
ctiti
oner
s in
terp
rete
rs &
oth
er
communication,permanent
10
00
Lega
l rel
ated
per
man
ent
20
00
Libr
ary
mai
l and
rela
ted
cler
ks p
erm
anen
t20
00
0
113
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Crit
ical
occ
upat
ion
Num
ber o
f em
ploy
ees
at b
egin
ning
of p
erio
d A
pril
2016
App
oint
men
ts a
nd
tran
sfer
s in
to th
e de
part
men
t
Term
inat
ions
and
tr
ansf
ers
out o
f the
de
part
men
t
Turn
over
Rat
e
Ligh
t veh
icle
driv
ers
perm
anen
t40
06
15Lo
gist
ical
sup
port
pers
onne
l per
man
ent
153
035
22.8
8M
ater
ial-r
ecor
ding
and
tran
spor
t cle
rks
perm
anen
t58
01
1.72
Mes
seng
ers
porte
rs a
nd d
eliv
erer
s pe
rman
ent
90
00
Mot
or v
ehic
le d
river
s pe
rman
ent
310
1341
.94
Oth
er a
dmin
istra
tion
& re
late
d cl
erks
and
org
anis
ers
perm
anen
t31
679
9530
.06
Otheradm
inistrativepolicyandrelatedofficers
perm
anen
t58
01
1.72
Oth
er in
form
atio
n te
chno
logy
per
sonn
el. P
erm
anen
t12
00
0O
ther
occ
upat
ions
per
man
ent
11
00
Prin
ting
man
agem
ent a
nd s
uper
viso
ry p
erso
nnel
pe
rman
ent
80
112
.50
Prod
uctio
n ad
vise
rs :
fact
orie
s pe
rman
ent
246
030
12.2
0Q
uant
ity s
urve
yors
& re
late
d pr
ofes
sion
als
not c
lass
el
sew
here
per
man
ent
370
410
.81
Reg
ulat
ory
insp
ecto
rs p
erm
anen
t1
00
0R
isk
man
agem
ent a
nd s
ecur
ity s
ervi
ces
perm
anen
t21
02
9.52
Roa
d su
perin
tend
ents
per
man
ent
260
311
.54
Roa
d tra
de w
orke
rs. P
erm
anen
t9
06
66.6
7R
oad
wor
kers
per
man
ent
713
5583
11.6
4Sa
fetyhealthandqualityinspectorspermanent
40
00
Secr
etar
ies
& ot
her k
eybo
ard
oper
atin
g cl
erks
pe
rman
ent
531
11.
89
Secu
rity
guar
ds p
erm
anen
t14
00
0.00
Securityofficerspermanent
121
05
4.13
Seni
or m
anag
ers
perm
anen
t47
05
10.6
4
114
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Crit
ical
occ
upat
ion
Num
ber o
f em
ploy
ees
at b
egin
ning
of p
erio
d A
pril
2016
App
oint
men
ts a
nd
tran
sfer
s in
to th
e de
part
men
t
Term
inat
ions
and
tr
ansf
ers
out o
f the
de
part
men
t
Turn
over
Rat
e
Trad
e la
bour
ers
perm
anen
t91
219
839
743
.53
Tradequalitycontrollerspermanent
10
00
Trad
e re
late
d pe
rman
ent
310
381
294
94.8
4W
ater
pla
nt a
nd re
late
d op
erat
ors
perm
anen
t1
00
0TO
TAL
5362
908
1240
23.1
3
Tabl
e 4.
6.3
– R
easo
ns w
hy s
taff
left
the
depa
rtm
ent f
or th
e pe
riod
1 A
pril
2016
and
31
Mar
ch 2
017
Term
inat
ion
Type
Num
ber
Perc
enta
ge o
f Tot
al
Res
igna
tions
Perc
enta
ge o
f Tot
al
Empl
oym
ent
Tota
l Ter
min
ated
Tota
l Em
ploy
men
t
01Death,P
ermanent
383.
060.
7712
4049
1802Resignation,Permanent
165
13.3
13.
3612
4049
1803Expiryofcontract,P
ermanent
915
73.7
918
.61
1240
4918
06Dischargedduetoillhealth,P
ermanent
60.
480.
1212
4049
1807Dismissal-m
isconduct,Pe
rmanent
50.
400.
1012
4049
1809Retirement,Pe
rmanent
111
8.95
2.26
1240
4918
TOTA
L12
4010
025
.21
1240
4918
Tabl
e 4.
6.4
Prom
otio
ns b
y cr
itica
l occ
upat
ion
for t
he p
erio
d 1
Apr
il 20
16 a
nd 3
1 M
arch
201
7
Occ
upat
ion
Empl
oym
ent a
t B
egin
ning
of
Perio
d
Prom
otio
ns to
an
othe
r Sal
ary
Leve
l
Sala
ry L
evel
Pr
omot
ions
as
a %
of
Em
ploy
men
t
Prog
ress
ions
to
anot
her N
otch
w
ithin
Sal
ary
Leve
l
Not
ch
prog
ress
ions
as
a %
of E
mpl
oym
ent
Administrativerelated
409
30.
7377
18.8
3Allartisansinthebuildingmetalmachinery
etc.
469
00
283
60.3
4
Appraisers-valuersandrelated
prof
essi
onal
s41
00
2663
.41
Architectstownandtrafficplanners
220
04
18.1
8
115
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Occ
upat
ion
Empl
oym
ent a
t B
egin
ning
of
Perio
d
Prom
otio
ns to
an
othe
r Sal
ary
Leve
l
Sala
ry L
evel
Pr
omot
ions
as
a %
of
Em
ploy
men
t
Prog
ress
ions
to
anot
her N
otch
w
ithin
Sal
ary
Leve
l
Not
ch
prog
ress
ions
as
a %
of E
mpl
oym
ent
Artisanprojectandrelatedsuperintendents
320
013
40.6
3Au
xiliaryandrelatedworkers
110
05
45.4
5Bo
iler a
nd re
late
d op
erat
ors
40
01
25.0
0Bu
ildin
g an
d ot
her p
rope
rty c
aret
aker
s19
00
1578
.95
Bus
and
heav
y ve
hicl
e dr
iver
s10
90
073
66.9
7Cartographersandsurveyors
10
01
100
Cartographicsurveyingandrelated
tech
nici
ans
140
03
21.4
3
Charteredaccountants
10
00
0Cleanersinofficesworkshopshospitalsetc.
192
00
7438
.54
Clientinformclerks(switchboardreception
informationclerks)
10
01
100
Com
municationandinformationrelated
120
01
8.33
Com
munitydevelopmentw
orkers
10
01
100
Com
puterprogram
mers.
10
01
100
Earth
mov
ing
and
rela
ted
plan
t ope
rato
rs27
00
1451
.85
Engi
neer
ing
scie
nces
rela
ted
136
00
5842
.65
Engi
neer
s an
d re
late
d pr
ofes
sion
als
230
012
52.1
7Fi
nanc
e an
d ec
onom
ics
rela
ted
190
012
63.1
6Fi
nanc
ial a
nd re
late
d pr
ofes
sion
als
115
10.
8747
40.8
7Fi
nanc
ial c
lerk
s an
d cr
edit
cont
rolle
rs15
00
078
52.0
0Firefightingandrelatedworkers
20
02
100
Headofdepartment/chiefexecutiveofficer
10
00
0H
ouse
keep
ers
laun
dry
and
rela
ted
wor
kers
20
02
100
Hum
an re
sour
ces
& or
gani
satio
nal
deve
lopm
ent &
rela
ted
prof
essi
onal
s65
00
3147
.69
Hum
an re
sour
ces
cler
ks11
60
050
43.1
0
116
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Occ
upat
ion
Empl
oym
ent a
t B
egin
ning
of
Perio
d
Prom
otio
ns to
an
othe
r Sal
ary
Leve
l
Sala
ry L
evel
Pr
omot
ions
as
a %
of
Em
ploy
men
t
Prog
ress
ions
to
anot
her N
otch
w
ithin
Sal
ary
Leve
l
Not
ch
prog
ress
ions
as
a %
of E
mpl
oym
ent
Hum
an re
sour
ces
rela
ted
660
033
50In
form
atio
n te
chno
logy
rela
ted
30
00
0In
spec
tors
of a
ppre
ntic
es w
orks
and
ve
hicl
es73
11.
3724
32.8
8
Lang
uage
pra
ctiti
oner
s in
terp
rete
rs &
oth
er
com
mun
icat
ion
10
00
0
Lega
l rel
ated
20
00
0Li
brar
y m
ail a
nd re
late
d cl
erks
200
014
70Li
ght v
ehic
le d
river
s40
00
2152
.50
Logi
stic
al s
uppo
rt pe
rson
nel
153
00
5837
.91
Mat
eria
l-rec
ordi
ng a
nd tr
ansp
ort c
lerk
s58
00
4272
.41
Mes
seng
ers
porte
rs a
nd d
eliv
erer
s9
00
222
.22
Mot
or v
ehic
le d
river
s31
00
1135
.48
Oth
er a
dmin
istra
tion
& re
late
d cl
erks
and
or
gani
sers
316
--
112
35.4
4
Oth
er a
dmin
istra
tive
polic
y an
d re
late
d officers
58-
-24
41.3
8
Oth
er in
form
atio
n te
chno
logy
per
sonn
el.
12-
-5
41.6
7O
ther
occ
upat
ions
1-
-0
0Pr
intin
g m
anag
emen
t and
sup
ervi
sory
pe
rson
nel
8-
-8
100
Prod
uctio
n ad
vise
rs :
fact
orie
s24
6-
-16
868
.29
Qua
ntity
sur
veyo
rs &
rela
ted
prof
essi
ons
not c
lass
els
ewhe
re37
--
1027
.03
Reg
ulat
ory
insp
ecto
rs1
--
110
0R
isk
man
agem
ent a
nd s
ecur
ity s
ervi
ces
211
4.76
733
.33
Roa
d su
perin
tend
ents
26-
-18
69.2
3R
oad
trade
wor
kers
.9
--
222
.22
117
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Occ
upat
ion
Empl
oym
ent a
t B
egin
ning
of
Perio
d
Prom
otio
ns to
an
othe
r Sal
ary
Leve
l
Sala
ry L
evel
Pr
omot
ions
as
a %
of
Em
ploy
men
t
Prog
ress
ions
to
anot
her N
otch
w
ithin
Sal
ary
Leve
l
Not
ch
prog
ress
ions
as
a %
of E
mpl
oym
ent
Roa
d w
orke
rs71
310
1.40
374
52.4
5Sa
fetyhealthandqualityinspectors
4-
-2
50Se
cret
arie
s &
othe
r key
boar
d op
erat
ing
cler
ks53
11.
8925
47.1
7
Secu
rity
guar
ds14
--
750
Securityofficers
121
--
8872
.73
Seni
or m
anag
ers
473
6.38
00
Trad
e la
bour
ers
912
--
161.
75Tradequalitycontrollers
1-
-1
100
Trad
e re
late
d31
0-
-20
365
.48
Wat
er p
lant
and
rela
ted
oper
ator
s1
--
110
0TO
TAL
5362
200.
3721
6240
.32
Tabl
e 4.
6.5
– Pr
omot
ions
by
sala
ry b
and
for t
he p
erio
d 1
Apr
il 20
16 a
nd 3
1 M
arch
201
7
Sala
ry B
and
Empl
oyee
s 1
Apr
il 20
16Pr
omot
ions
to
anot
her S
alar
y Le
vel
Sala
ry L
evel
Pr
omot
ions
as
a %
of
Em
ploy
men
t by
sala
ry le
vel
Prog
ress
ions
to
anot
her n
otch
w
ithin
sal
ary
leve
l
Not
ch
prog
ress
ions
as
a %
of e
mpl
oyee
s by
sa
lary
ban
ds01Low
erSkilled(Levels1-2),P
ermanent
662
00
8813
.29
02Skilled(Levels3-5),P
ermanent
1209
100.
8391
575
.68
03HighlySkille
dProduction(Levels6-8),
Perm
anen
t10
092
0.20
638
63.2
3
04HighlySkille
dSu
pervision(Levels9-12),
Perm
anen
t36
24
1.10
238
65.7
5
05SeniorM
anagem
ent(Levels13-16),
Perm
anen
t54
47.
4113
24.0
7
09Other,P
ermanent
1549
00
270
17.4
310Contract(Levels1-2),P
ermanent
171
00
00
118
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Sala
ry B
and
Empl
oyee
s 1
Apr
il 20
16Pr
omot
ions
to
anot
her S
alar
y Le
vel
Sala
ry L
evel
Pr
omot
ions
as
a %
of
Em
ploy
men
t by
sala
ry le
vel
Prog
ress
ions
to
anot
her n
otch
w
ithin
sal
ary
leve
l
Not
ch
prog
ress
ions
as
a %
of e
mpl
oyee
s by
sa
lary
ban
ds11Contract(Levels3-5),P
ermanent
580
00
012Contract(Levels6-8),P
ermanent
205
00
00
13Contract(Levels9-12),Pe
rmanent
750
00
014Contract(Levels13-16),P
ermanent
80
00
0TO
TAL
5362
200.
3721
6240
.32
4.7.
EM
PLO
YMEN
T EQ
UIT
Y
ThetablesinthissectionarebasedontheformatsprescribedbytheEm
ploymentE
quityAct,55of1998.
Tabl
e 4.
7.1
Tota
l num
ber o
f em
ploy
ees
(incl
udin
g em
ploy
ees
with
dis
abili
ties)
in e
ach
of th
e fo
llow
ing
occu
patio
nal c
ateg
orie
s as
on
31 M
arch
201
7
Occ
upat
iona
l Cat
egor
yM
ale
Fem
ale
Tota
lM
ale,
A
fric
anM
ale,
C
olou
red
Mal
e,
Indi
anM
ale,
To
tal
Bla
cks
Mal
e,
Whi
teFe
mal
e,
Afr
ican
Fem
ale,
C
olou
red
Fem
ale,
In
dian
Fem
ale,
To
tal
Bla
cks
Fem
ale,
W
hite
01–Seniorofficialsand
Man
ager
s24
21
272
171
018
047
02 -
Prof
essi
onal
s21
211
222
521
187
32
192
644
403
– T
echn
icia
ns a
nd
Associateprofessionals
225
71
233
536
54
036
911
618
04-Clerks
197
51
203
336
011
237
313
592
05 –
Ser
vice
sho
p an
d m
arke
t sal
es w
orke
rs98
20
100
351
00
510
154
07–Craftandrelatedtrade
wor
kers
905
260
931
2338
410
039
41
1349
08 –
Pla
nt a
nd m
achi
ne
oper
ator
s as
sem
bler
s18
03
018
31
40
04
018
8
09 –
Lab
oure
rs a
nd re
late
d w
orke
rs97
512
098
72
536
10
537
015
26
119
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Occ
upat
iona
l Cat
egor
yM
ale
Fem
ale
Tota
lM
ale,
A
fric
anM
ale,
C
olou
red
Mal
e,
Indi
anM
ale,
To
tal
Bla
cks
Mal
e,
Whi
teFe
mal
e,
Afr
ican
Fem
ale,
C
olou
red
Fem
ale,
In
dian
Fem
ale,
To
tal
Bla
cks
Fem
ale,
W
hite
TOTA
L28
1668
528
8960
1904
304
1938
3149
18Em
ploy
ees
with
dis
abilit
ies
440
044
220
00
202
68
Tabl
e 4.
7.2
Tota
l num
ber o
f em
ploy
ees
(incl
udin
g em
ploy
ees
with
dis
abili
ties)
in e
ach
of th
e fo
llow
ing
occu
patio
nal b
ands
as
on 3
1 M
arch
201
7
Occ
upat
iona
l ban
dM
ale
Fem
ale
Tota
lM
ale,
A
fric
anM
ale,
C
olou
red
Mal
e,
Indi
anM
ale,
To
tal
Bla
cks
Mal
e,
Whi
teFe
mal
e,
Afr
ican
Fem
ale,
C
olou
red
Fem
ale,
In
dian
Fem
ale,
To
tal
Bla
cks
Fem
ale,
W
hite
01TopManagem
ent,
Perm
anen
t1
00
10
20
02
03
02SeniorM
anagem
ent,
Perm
anen
t30
21
3312
151
016
162
03Professionallyqualified
and
expe
rienc
ed s
peci
alis
ts
andmid-managem
ent,
Perm
anen
t
218
172
237
2112
32
212
79
394
04 S
kille
d te
chni
cal
and
acad
emic
ally
qualifiedworkers,junior
managem
ent,supervisors,
foremen,P
ermanent
501
121
514
2147
315
249
017
1042
05 S
emi-s
kille
d an
d di
scre
tiona
ry d
ecis
ion
making,Permanent
1036
160
1052
419
21
019
31
1250
06Unskilledanddefined
decisionmaking,
Perm
anen
t23
40
023
40
167
10
168
040
2
07NotAvailable,
Perm
anen
t70
718
072
50
828
100
838
115
64
120
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Occ
upat
iona
l ban
dM
ale
Fem
ale
Tota
lM
ale,
A
fric
anM
ale,
C
olou
red
Mal
e,
Indi
anM
ale,
To
tal
Bla
cks
Mal
e,
Whi
teFe
mal
e,
Afr
ican
Fem
ale,
C
olou
red
Fem
ale,
In
dian
Fem
ale,
To
tal
Bla
cks
Fem
ale,
W
hite
08Contract(Top
Managem
ent),Permanent
10
01
00
00
00
1
09Contract(S
enior
Managem
ent),Permanent
20
02
00
00
00
2
10Contract(P
rofessionally
Qualified),Pe
rmanent
151
016
223
00
231
42
11Contract(S
killed
Technical),Permanent
652
168
052
00
521
121
12Contract(S
emi-S
killed),
Perm
anen
t1
00
10
20
02
03
13Contract(U
nskilled),
Perm
anen
t5
00
50
270
027
032
TOTA
L28
1668
528
8960
1904
304
1938
3149
18
Tabl
e 4.
7.3
Rec
ruitm
ent f
or th
e pe
riod
1 A
pril
2016
and
31
Mar
ch 2
017
Occ
upat
iona
l Ban
dM
ale
Fem
ale
Tota
lM
ale,
A
fric
anM
ale,
C
olou
red
Mal
e,
Indi
anM
ale,
To
tal
Bla
cks
Mal
e,
Whi
teFe
mal
e,
Afr
ican
Fem
ale,
C
olou
red
Fem
ale,
In
dian
Fem
ale,
To
tal
Bla
cks
Fem
ale,
W
hite
03Professionallyqualified
and
expe
rienc
ed s
peci
alis
ts
andmid-managem
ent,
Perm
anen
t
50
16
04
00
40
10
04 S
kille
d te
chni
cal
and
acad
emic
ally
qualifiedworkers,junior
managem
ent,supervisors,
foremen,P
ermanent
00
00
01
00
10
1
121
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Occ
upat
iona
l Ban
dM
ale
Fem
ale
Tota
lM
ale,
A
fric
anM
ale,
C
olou
red
Mal
e,
Indi
anM
ale,
To
tal
Bla
cks
Mal
e,
Whi
teFe
mal
e,
Afr
ican
Fem
ale,
C
olou
red
Fem
ale,
In
dian
Fem
ale,
To
tal
Bla
cks
Fem
ale,
W
hite
05 S
emi-s
kille
d an
d di
scre
tiona
ry d
ecis
ion
making,Permanent
141
015
00
00
00
15
06Unskilledanddefined
decisionmaking,
Perm
anen
t35
00
350
210
021
056
07NotAvailable,
Perm
anen
t32
57
033
20
462
40
466
179
9
10Contract(P
rofessionally
qualified),Pe
rmanent
00
00
01
00
10
1
11Contract(S
killed
technical),Permanent
160
016
010
00
100
26
TOTA
L39
58
140
40
499
40
503
190
8Em
ploy
ees
with
dis
abilit
ies
50
05
01
00
10
6
Tabl
e 4.
7.4
Prom
otio
ns fo
r the
per
iod
1 A
pril
2016
to 3
1 M
arch
201
7
Occ
upat
iona
l Ban
dM
ale
Fem
ale
Tota
lM
ale,
A
fric
anM
ale,
C
olou
red
Mal
e,
Indi
anM
ale,
To
tal
Bla
cks
Mal
e,
Whi
teFe
mal
e,
Afr
ican
Fem
ale,
C
olou
red
Fem
ale,
In
dian
Fem
ale,
To
tal
Bla
cks
Fem
ale,
W
hite
02SeniorM
anagem
ent,
Perm
anen
t11
00
114
20
02
017
03Professionallyqualified
and
expe
rienc
ed s
peci
alis
ts
andmid-managem
ent,
Perm
anen
t
127
100
137
1777
21
808
242
122
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Occ
upat
iona
l Ban
dM
ale
Fem
ale
Tota
lM
ale,
A
fric
anM
ale,
C
olou
red
Mal
e,
Indi
anM
ale,
To
tal
Bla
cks
Mal
e,
Whi
teFe
mal
e,
Afr
ican
Fem
ale,
C
olou
red
Fem
ale,
In
dian
Fem
ale,
To
tal
Bla
cks
Fem
ale,
W
hite
04 S
kille
d te
chni
cal
and
acad
emic
ally
qualifiedworkers,junior
managem
ent,supervisors,
foremen,P
ermanent
331
111
343
1126
311
127
511
640
05 S
emi-s
kille
d an
d di
scre
tiona
ry d
ecis
ion
making,Permanent
806
120
818
310
40
010
40
925
06Unskilledanddefined
decisionmaking,
Perm
anen
t42
00
420
451
046
088
07NotAvailable,
Perm
anen
t10
620
012
60
125
180
143
127
0
TOTA
L14
2353
114
7735
616
322
650
2021
82
Empl
oyee
s w
ith d
isab
ilitie
s20
00
200
30
03
225
Tabl
e 4.
7.5
– Te
rmin
atio
ns fo
r the
per
iod
1 A
pril
2016
to 3
1 M
arch
201
7
Occ
upat
iona
l Ban
dM
ale
Fem
ale
Tota
lM
ale,
A
fric
anM
ale,
C
olou
red
Mal
e,
Indi
anM
ale,
To
tal
Bla
cks
Mal
e,
Whi
teFe
mal
e,
Afr
ican
Fem
ale
Col
ored
Fem
ale,
In
dian
Fem
ale,
To
tal
Bla
cks
Fem
ale,
W
hite
02SeniorM
anagem
ent,
Perm
anen
t0
00
00
10
01
01
03Professionallyqualified
and
expe
rienc
ed s
peci
alis
ts
andmid-managem
ent,
Perm
anen
t
220
022
15
00
50
28
123
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Occ
upat
iona
l Ban
dM
ale
Fem
ale
Tota
lM
ale,
A
fric
anM
ale,
C
olou
red
Mal
e,
Indi
anM
ale,
To
tal
Bla
cks
Mal
e,
Whi
teFe
mal
e,
Afr
ican
Fem
ale
Col
ored
Fem
ale,
In
dian
Fem
ale,
To
tal
Bla
cks
Fem
ale,
W
hite
04 S
kille
d te
chni
cal
and
acad
emic
ally
qualifiedworkers,junior
managem
ent,supervisors,
foremen,P
ermanent
322
034
37
00
71
45
05 S
emi-s
kille
d an
d di
scre
tiona
ry d
ecis
ion
making,Permanent
881
089
07
00
70
96
06Unskilledanddefined
decisionmaking,Permanent
70
07
00
00
00
7
07NotAvailable,Permanent
378
220
400
034
919
036
81
769
09Contract(S
enior
Managem
ent),Permanent
30
03
20
00
00
5
10Contract(P
rofessionally
qualified),Pe
rmanent
80
08
020
00
200
28
11Contract(S
killed
technical),Permanent
310
031
150
00
500
82
12Contract(S
emi-skilled),
Perm
anen
t33
00
330
210
021
054
13Contract(U
nskilled),
Perm
anen
t58
00
580
670
067
012
5
TOTA
L66
025
068
57
527
190
546
212
40Em
ploy
ees
with
di
sabi
litie
s13
00
130
70
07
020
124
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Tabl
e 4.
7.6
Dis
cipl
inar
y ac
tion
for t
he p
erio
d 1
Apr
il 20
16 to
31
Mar
ch 2
017
Dis
cipl
inar
y ac
tion
Mal
eFe
mal
eTo
tal
Afr
ican
Col
oure
dIn
dian
Whi
teA
fric
anC
olou
red
Indi
anW
hite
Dis
mis
sals
20
00
10
00
3Su
spen
sion
with
out p
ay11
00
04
00
015
Dem
otio
n0
00
00
00
00
Fina
l writ
ten
war
ning
290
00
190
00
48W
ritte
n w
arni
ng4
00
03
00
07
Verb
al w
arni
ng0
00
00
00
00
Casewithdraw
n0
00
00
00
00
DischargedSe
c.17(3)(i)(a)ofP
SA3
00
01
00
04
Res
igne
d w
hile
cas
e in
pro
cess
00
00
10
00
1Notguilty
10
00
10
00
2Pe
ndin
g ca
ses
240
00
90
00
33TO
TAL
280
00
120
00
40
Tabl
e 4.
7.7
– Sk
ills
deve
lopm
ent f
or th
e pe
riod
1 A
pril
2016
to 3
1 M
arch
201
7
Occ
upat
iona
l cat
egor
ies
Mal
eFe
mal
eTo
tal
Afr
ican
Col
oure
dIn
dian
Whi
teA
fric
anC
olou
red
Indi
anW
hite
Legislators,SeniorO
fficialsandManagers
260
00
854
23
120
Prof
essi
onal
s33
30
244
00
082
TechniciansandAssociateProfessionals
491
01
150
00
66Clerks
159
00
028
81
01
449
Serv
ice
and
Sale
s W
orke
rs10
00
018
10
029
Skille
dAg
ricultureandFisheryW
orkers
00
00
00
00
0CraftandrelatedTradesW
orkers
210
00
200
00
41PlantandMachineOperatorsandAssem
blers
120
00
00
00
12El
emen
tary
Occ
upat
ions
200
00
200
00
40
125
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Occ
upat
iona
l cat
egor
ies
Mal
eFe
mal
eTo
tal
Afr
ican
Col
oure
dIn
dian
Whi
teA
fric
anC
olou
red
Indi
anW
hite
TOTA
L33
04
03
490
62
483
9Em
ploy
ees
with
dis
abilit
ies
00
00
10
00
0
4.8.
SI
GN
ING
OF
PER
FOR
MA
NC
E A
GR
EEM
ENTS
BY
SMS
MEM
BER
S
Tabl
e 4.
8.1.
Sig
ning
of P
erfo
rman
ce A
gree
men
ts b
y SM
S m
embe
rs a
s on
31
May
201
6
SMS
Leve
l To
tal n
umbe
r of f
unde
d SM
S po
sts
Tota
l num
ber o
f SM
S m
embe
rsTo
tal n
umbe
r of s
igne
d pe
rfor
man
ce a
gree
men
tsSi
gned
per
form
ance
ag
reem
ents
as
% o
f tot
al
num
ber o
f SM
S m
embe
rsD
irect
or-g
ener
al/ H
ead
of
Dep
artm
ent
11
1100%
Sala
ry le
vel 1
61
11
100%
Sala
ry le
vel 1
52
22
100%
Sala
ry L
evel
14
66
6100%
Sala
ry L
evel
13
4646
4496%
TOTA
L56
5654
96%
Tabl
e 4.
8.2
Rea
sons
for n
ot h
avin
g co
nclu
ded
Perf
orm
ance
agr
eem
ents
for a
ll SM
S m
embe
rs a
s on
31
Mar
ch 2
017
Rea
sons
TwoSM
Sofficialsw
ereonextendedleaveduringtheperiodofcontracting
Tabl
e 4.
8.3
Dis
cipl
inar
y st
eps
take
n ag
ains
t SM
S m
embe
rs fo
r not
hav
ing
conc
lude
d Pe
rfor
man
ce a
gree
men
ts a
s on
31
Mar
ch 2
017
Rea
sons
Nodisciplinarystepstakendueto4.8.2above
126
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
4.9.
PE
RFO
RM
AN
CE
REW
AR
DS
Tabl
e 4.
9.1
Perf
orm
ance
rew
ards
by
race
, gen
der,
and
disa
bilit
y fo
r the
per
iod
1 A
pril
2016
to 3
1 M
arch
201
7
Rac
e an
d G
ende
rBeneficiaryProfi
leC
ost
Num
ber o
f Beneficiaries
Tota
l num
ber o
f em
ploy
ees
in g
roup
% o
f tot
al w
ithin
gr
oup
Cost(R’000)
Aver
age
Cos
t per
em
ployee(R’000)
African,Fem
ale
238
1,884
12.6
33,433
14,427
African,M
ale
435
2,772
15.6
95,048
11,604
Asian,Fem
ale
24
5063
31,687
Asian,Male
05
00
0Coloured,Fem
ale
1330
43.3
322
417,299
Coloured,Male
1168
16.1
821
819,826
TotalBlacks,Fem
ale
253
1,918
13.1
938
0715,047
TotalBlacks,Male
446
2,845
15.6
853
1711,921
White,Fem
ale
1129
37.9
326
524,090
White,M
ale
1458
24.1
436
125,785
Empl
oyee
s w
ith a
dis
abilit
y 4
685.
8879
19,750
Tota
l72
84,918
14.8
09,829
13,501
Note:Themoderationprocesshasnotyetbeenfinalisedforthe2016/17financialyear
Tab
le 4
.9.2
Per
form
ance
Rew
ards
by
sala
ry b
ands
for p
erso
nnel
bel
ow S
enio
r Man
agem
ent S
ervi
ce fo
r the
per
iod
1 A
pril
2016
to 3
1 M
arch
201
7
Sala
ry B
ands
BeneficiaryProfi
leC
ost
Num
ber o
f beneficiarie
sN
umbe
r of e
mpl
oyee
s%
of t
otal
with
in
sala
ry b
ands
TotalC
ost(R’000)
Aver
age
cost
per
em
ployee(R’000)
01Low
erSkilled(Levels
1-2)
6440
215
.92
341
5,328
02Skilled(Levels3-5)
275
1,250
22.0
02,119
7,705
03 H
ighl
y Sk
illed
Prod
uctio
n (Levels6-8)
279
1,042
26.7
839
3914,118
127
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Sala
ry B
ands
BeneficiaryProfi
leC
ost
Num
ber o
f beneficiarie
sN
umbe
r of e
mpl
oyee
s%
of t
otal
with
in
sala
ry b
ands
TotalC
ost(R’000)
Aver
age
cost
per
em
ployee(R’000)
)04HighlySkille
dSu
pervision(Levels9-12)
106
394
26.9
033
8731,953
09 O
ther
01,564
00
010Contract(Levels1-2)
032
00
011Contract(Levels3-5)
03.
000
00
12Contract(Levels6-8)
012
10
00
13Contract(Levels9-12)
042
00
0TO
TAL
724
4,85
014
.93
9,78
6.00
59.1
05N
ote:
The
mod
erat
ion
proc
ess
has
not y
et b
een
final
ised
for t
he 2
016/
17 fi
nanc
ial y
ear
Tabl
e 4.
9.3
– Pe
rfor
man
ce R
ewar
ds b
y cr
itica
l occ
upat
ions
for t
he p
erio
d 1
Apr
il 20
16 to
31
Mar
ch 2
017
Crit
ical
Occ
upat
ion
BeneficiaryProfi
leC
ost
Num
ber o
f beneficiarie
sN
umbe
r of e
mpl
oyee
s%
of t
otal
with
in
occu
patio
nTotalC
ost(R’000)
Aver
age
cost
per
em
ployee(R’000)
Administrativerelated
4837
812
.70
1,200.76
25,015
Allartisansinthebuilding
met
al m
achi
nery
etc
.86
459
18.7
465
5.96
7,627
Appraisers-valuersand
rela
ted
prof
essi
onal
s17
3943
.59
307.
5818,093
Architectstownandtraffic
plan
ners
319
15.7
997
.28
32,426
Artisanprojectandrelated
supe
rinte
nden
ts6
3020
123.
4520,575
Auxiliaryandrelated
wor
kers
311
27.2
727
.66
9,220
Boile
r and
rela
ted
oper
ator
s1
425
6.94
6,942
Build
ing
and
othe
r pro
perty
ca
reta
kers
717
41.1
865
.69
9,383
128
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Crit
ical
Occ
upat
ion
BeneficiaryProfi
leC
ost
Num
ber o
f beneficiarie
sN
umbe
r of e
mpl
oyee
s%
of t
otal
with
in
occu
patio
nTotalC
ost(R’000)
Aver
age
cost
per
em
ployee(R’000)
Bus
and
heav
y ve
hicl
e dr
iver
s26
103
25.2
424
7.09
9,503
Cartographersand
surv
eyor
s0
10
00
Cartographicsurveyingand
rela
ted
tech
nici
ans
114
7.14
19.6
319,627
Cleanersinoffices
wor
ksho
ps h
ospi
tals
etc
.38
124
30.6
521
6.16
5,688
Clientinformclerks
(switchboardreception
informationclerks)
11
100
8.19
8,189
Com
municationand
info
rmat
ion
rela
ted
012
00
0
Com
munitydevelopment
wor
kers
11
100
34.7
734,768
Com
puterprogram
mers.
01
00
0Ea
rth m
ovin
g an
d re
late
d pl
ant o
pera
tors
028
00
0
Engi
neer
ing
scie
nces
re
late
d19
128
14.8
442
7.12
22,479
Engi
neer
s an
d re
late
d pr
ofes
sion
als
322
13.6
479
.58
26,526
Fina
nce
and
econ
omic
s re
late
d5
1533
.33
155.
5031,099
Fina
ncia
l and
rela
ted
prof
essi
onal
s21
7627
.63
454.
2921,632
Fina
ncia
l cle
rks
and
cred
it co
ntro
llers
2614
218
.31
335.
0212,885
Firefightingandrelated
wor
kers
02
00
0
129
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Crit
ical
Occ
upat
ion
BeneficiaryProfi
leC
ost
Num
ber o
f beneficiarie
sN
umbe
r of e
mpl
oyee
s%
of t
otal
with
in
occu
patio
nTotalC
ost(R’000)
Aver
age
cost
per
em
ployee(R’000)
Hea
d of
dep
artm
ent/c
hief
executiveofficer
01
00
0
Hou
seke
eper
s la
undr
y an
d re
late
d w
orke
rs1
250
.00
7.15
7,152
Hum
an re
sour
ces
& or
gani
satio
nal d
evel
opm
ent
& re
late
d pr
ofes
sion
s20
6232
.26
290.
5714,528
Hum
an re
sour
ces
cler
ks19
9619
.79
251.
3813,230.53
Hum
an re
sour
ces
rela
ted
2161
34.4
354
726,047
Info
rmat
ion
tech
nolo
gy
rela
ted
13
33.3
390
.51
90,505
Insp
ecto
rs o
f app
rent
ices
w
orks
and
veh
icle
s10
6415
.63
201.
1920,118
Lang
uage
pra
ctiti
oner
s in
terp
rete
rs &
oth
er
com
mun
icat
ion
01
00
0
Lega
l rel
ated
12
50.0
016
.57
16,570
Libr
ary
mai
l and
rela
ted
cler
ks5
2025
55.8
911,178
Ligh
t veh
icle
driv
ers
733
21.2
159
.91
8,557
Logi
stic
al s
uppo
rt pe
rson
nel
2511
821
.19
362.
3314,493
Mat
eria
l-rec
ordi
ng a
nd
trans
port
cler
ks16
6126
.23
198.
5012,406
Mes
seng
ers
porte
rs a
nd
deliv
erer
s2
922
.22
15.1
07,550
Mot
or v
ehic
le d
river
s3
1816
.67
22.9
17,638
Oth
er a
dmin
istra
tion
& re
late
d cl
erks
and
or
gani
sers
1621
97.
3116
6.83
10,426
130
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Crit
ical
Occ
upat
ion
BeneficiaryProfi
leC
ost
Num
ber o
f beneficiarie
sN
umbe
r of e
mpl
oyee
s%
of t
otal
with
in
occu
patio
nTotalC
ost(R’000)
Aver
age
cost
per
em
ployee(R’000)
Oth
er a
dmin
istra
tive
polic
y andrelatedofficers
2354
42.5
937
1.43
16,149
Oth
er in
form
atio
n te
chno
logy
per
sonn
el.
312
25.0
042
.09
14,030
Oth
er o
ccup
atio
ns0
20
00
Prin
ting
man
agem
ent a
nd
supe
rvis
ory
pers
onne
l5
771
.43
63.2
412,647
Prod
uctio
n ad
vise
rs :
fact
orie
s59
217
27.1
986
4.76
14,656
Qua
ntity
sur
veyo
rs &
re
latio
n pr
ofes
sion
s no
t cl
ass
else
whe
re2
287.
1445
.48
22,737
Reg
ulat
ory
insp
ecto
rs1
110
0.00
16.9
216,915
Ris
k m
anag
emen
t and
se
curit
y se
rvic
es5
1926
.32
107.
1921,437
Roa
d su
perin
tend
ents
723
30.4
387
.57
12,510
Roa
d tra
de w
orke
rs.
23
66.6
729
.17
14,582
Roa
d w
orke
rs11
663
518
.27
756.
306,519
Safetyhealthandquality
insp
ecto
rs3
475
35.3
111,769
Secr
etar
ies
& ot
her
keyb
oard
ope
ratin
g cl
erks
1753
32.0
825
4.14
14,949
Secu
rity
guar
ds2
1414
.29
10.2
95,147
Securityofficers
1411
612
.07
87.5
06,249
Seni
or m
anag
ers
145
2.22
31.8
031,803
Trad
e la
bour
ers
974
01.
2267
.85
7,539
Tradequalitycontrollers
01
00
0Tr
ade
rela
ted
054
50
00
131
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Crit
ical
Occ
upat
ion
BeneficiaryProfi
leC
ost
Num
ber o
f beneficiarie
sN
umbe
r of e
mpl
oyee
s%
of t
otal
with
in
occu
patio
nTotalC
ost(R’000)
Aver
age
cost
per
em
ployee(R’000)
Wat
er p
lant
and
rela
ted
oper
ator
s0
20
00
Tota
l72
84,
918
14.8
09,
829
13,2
13
Tabl
e 4.
9.4
Perf
orm
ance
rela
ted
rew
ards
(cas
h bo
nus)
, by
sala
ry b
and,
for S
enio
r Man
agem
ent S
ervi
ce fo
r the
per
iod
1 A
pril
2016
to 3
1 M
arch
201
7
Sala
ry B
and
BeneficiaryProfi
leC
ost
Num
ber o
f beneficiarie
sN
umbe
r of
empl
oyee
s%
of t
otal
with
in
band
TotalC
ost(R’000)
Aver
age
cost
per
em
ploy
eeTo
tal c
ost a
s a
% o
f the
tota
l pe
rson
nel
expe
nditu
reBa
ndA
144
5.66
3131
803
39,373
Band
B
06
9.09
00
6,523
BandC
02
00
02,857
Band
D
02
00
03,836
TOTA
L1
545.
8831
3180
352
,589
Not
e: T
he m
oder
atio
n pr
oces
s ha
s no
t yet
bee
n fin
alis
ed fo
r the
201
6/17
fina
ncia
l yea
r
132
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
4.10
. FO
REI
GN
WO
RK
ERS
Tabl
e 4.
10.1
For
eign
Wor
ker b
y sa
lary
ban
d fo
r the
per
iod
1 A
pril
2016
and
31
Mar
ch 2
017
Sala
ry B
and
Empl
oym
ent
at B
egin
ning
of
Per
iod
Perc
enta
ge
of T
otal
Empl
oym
ent
at E
nd o
f Pe
riod
Perc
enta
ge
of T
otal
Cha
nge
in
Empl
oym
ent
Perc
enta
ge
of T
otal
Tota
l Em
ploy
men
t at
Beg
inni
ng
of P
erio
d
Tota
l Em
ploy
men
t at
End
of
Perio
d
Tota
l C
hang
e in
Em
ploy
men
t
Hig
hly
skille
d pr
oduc
tion
(Levels6-8)
112
.50
216
.67
125
812
4
Hig
hly
skille
d su
perv
isio
n (Levels9-12)
337
.50
866
.67
512
58
124
Oth
er1
12.5
00
00
00
00
TAB
LE 4
.10.
2 Fo
reig
n W
orke
r by
maj
or o
ccup
atio
n fo
r the
per
iod
1 A
pril
2016
and
31
Mar
ch 2
017
Maj
or
Occ
upat
ion
Empl
oym
ent
at B
egin
ning
of
Per
iod
Perc
enta
ge
of T
otal
Empl
oym
ent
at E
nd o
f Pe
riod
Perc
enta
ge
of T
otal
Cha
nge
in
Empl
oym
ent
Perc
enta
ge
of T
otal
Tota
l Em
ploy
men
t at
Beg
inni
ng
of P
erio
d
Tota
l Em
ploy
men
t at
End
of
Perio
d
Tota
l C
hang
e in
Em
ploy
men
t
Administrative
officeworkers
112
.50
216
.67
125
812
4
Oth
er
occu
patio
ns1
12.5
00
00
08
0-8
Prof
essi
onal
s an
d m
anag
ers
675
1083
.33
410
08
124
TOTA
L8
100
1210
04
100
812
4
133
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
4.11
. LEA
VE U
TILI
SATI
ON
TAB
LE 4
.11.
1 Si
ck le
ave
for t
he p
erio
d 1
Janu
ary
2016
to 3
1 D
ecem
ber 2
016
Sala
ry B
and
Tota
l Day
s%
Day
s w
ith
Med
ical
Certifi
catio
n
Num
ber o
f Em
ploy
ees
usin
g Si
ck
Leav
e
% o
f Tot
al
Empl
oyee
s us
ing
Sick
Le
ave
Aver
age
Day
s pe
r Em
ploy
ee
Estim
ated
Cost(R’000)
Tota
l nu
mbe
r of
Empl
oyee
s us
ing
Sick
Le
ave
Tota
l nu
mbe
r of
days
with
m
edic
al
certificatio
nContract(Levels1-2)
574
43.0
310
84.
015.
3124
026
9624
7Contract(Levels13-16)
2290
.91
30.
117.
3399
2696
20Contract(Levels3-5)
202
46.0
436
1.34
5.61
132
2696
93Contract(Levels6-8)
821
40.2
215
15.
65.
4392
426
9633
0Contract(Levels9-12)
205
45.8
542
1.56
4.88
358
2696
94ContractOther
1229
30.8
535
413
.13
3.47
284
2696
379
Highlyskille
dproduction(Levels
6-8)
7686
54.2
884
331
.27
9.12
9418
2696
4172
Hig
hly
skille
d su
perv
isio
n (Levels9-12)
2435
51.9
130
011
.13
8.12
5444
2696
1264
Lowerskilled(Levels1-2)
1493
60.2
120
17.
467.
4369
026
9689
9Se
niormanagem
ent(Levels
13-16)
295
52.5
439
1.45
7.56
1070
2696
155
Skille
d(Levels3-5)
5491
58.6
661
922
.96
8.87
3618
2696
3221
TOTA
L20
452
53.1
726
9610
07.
5922
276
2696
1087
4
TAB
LE 4
.11.
2 D
isab
ility
leav
e (te
mpo
rary
and
per
man
ent)
for t
he p
erio
d 1
Janu
ary
2016
to 3
1 D
ecem
ber 2
016
Sala
ry B
and
Tota
l Day
s%
Day
s w
ith
Med
ical
Certifi
catio
n
Num
ber o
f Em
ploy
ees
usin
g D
isab
ility
Le
ave
% o
f Tot
al
Empl
oyee
s us
ing
Dis
abili
ty
Leav
e
Aver
age
Day
s pe
r Em
ploy
ee
Estim
ated
Cost(R’000)
Tota
l nu
mbe
r of
days
with
m
edic
al
certificatio
n
Tota
l nu
mbe
r of
Empl
oyee
s us
ing
Dis
abili
ty
Leav
eContract(Levels1-2)
410
01
44
24
25
134
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Sala
ry B
and
Tota
l Day
s%
Day
s w
ith
Med
ical
Certifi
catio
n
Num
ber o
f Em
ploy
ees
usin
g D
isab
ility
Le
ave
% o
f Tot
al
Empl
oyee
s us
ing
Dis
abili
ty
Leav
e
Aver
age
Day
s pe
r Em
ploy
ee
Estim
ated
Cost(R’000)
Tota
l nu
mbe
r of
days
with
m
edic
al
certificatio
n
Tota
l nu
mbe
r of
Empl
oyee
s us
ing
Dis
abili
ty
Leav
eContract(Levels6-8)
1710
03
125.
6718
1725
ContractOther
3810
01
438
938
25Highlyskille
dproduction(Levels
6-8)
671
100
728
95.8
691
767
125
Highlyskille
dsupervision(Levels
9-12)
269
100
520
53.8
803
269
25
Lowerskilled(Levels1-2)
310
01
43
13
25Skille
d(Levels3-5)
366
100
728
52.2
923
536
625
TOTA
L13
6810
025
100
54.7
219
8413
6825
TAB
LE 4
.11.
3 A
nnua
l Lea
ve fo
r the
per
iod
1 Ja
nuar
y 20
16 to
31
Dec
embe
r 201
6
Sala
ry B
and
Tota
l Day
s Ta
ken
Aver
age
Day
s pe
r Em
ploy
eeN
umbe
r of
Empl
oyee
s w
ho to
ok
leav
eContract(Levels1-2)
3268
19.5
716
7Contract(Levels13-16)
8712
.43
7Contract(Levels3-5)
1177
20.6
557
Contract(Levels6-8)
2971
13.8
221
5Contract(Levels9-12)
1155
15.2
76ContractOther
1463
39.
715
08Highlyskille
dproduction(Levels6-8)
2451
822
.27
1101
Highlyskille
dsupervision(Levels9-12)
9473
21.8
343
4Lowerskilled(Levels1-2)
6998
15.5
944
9Se
niormanagem
ent(Levels13-16)
1371
20.1
668
Skille
d(Levels3-5)
2972
922
.113
45TO
TAL
9538
017
.58
5427
135
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
TAB
LE 4
.11.
4 C
appe
d le
ave
for t
he p
erio
d 1
Janu
ary
2016
to 3
1 D
ecem
ber 2
016
Sala
ry B
and
Tota
l day
s of
ca
pped
leav
e ta
ken
Aver
age
num
ber o
f da
ys ta
ken
per
empl
oyee
Aver
age
capp
ed le
ave
per e
mpl
oyee
as
at e
nd o
f pe
riod
Num
ber o
f Em
ploy
ees
who
to
ok C
appe
d le
ave
Tota
l num
ber o
f ca
pped
leav
e av
aila
ble
at e
nd
of p
erio
d
Num
ber o
f Em
ploy
ees
as
at e
nd o
f per
iod
Highlyskille
dproduction(Levels6-8)
8712
.43
117.
367
5069
8.97
432
Highlyskille
dsupervision(Levels9-12)
133.
2511
5.75
419
794.
117
1Lowerskilled(Levels1-2)
133.
2579
.31
447
58.5
60Se
niormanagem
ent(Levels13-16)
78.7
7
1732
.89
22Skille
d(Levels3-5)
504.
5596
.33
1177
064.
2780
0
TAB
LE 4
.11.
5 le
ave
payo
ut fo
r the
per
iod
1 Ja
nuar
y 20
16 to
31
Dec
embe
r 201
6
The
follo
win
g ta
ble
sum
mar
ises
pay
men
ts m
ade
to e
mpl
oyee
s as
a re
sult
of le
ave
that
was
not
take
n.
REA
SON
TotalA
mou
nt(R
’000)
Num
ber o
f Em
ploy
ees
Aver
age
paym
ent p
er
empl
oyee
(R’000)
Leav
e pa
yout
for 2
016/
17 d
ue to
non
-util
isat
ion
of le
ave
for t
he p
revi
ous
cycl
e49
023
412
255
Cappedleavepayoutsonterminationofservicefor2016/17
00
0Currentleavepayoutonterminationofservicefor2016/17
28 2
69 1
0644
863
100
TOTA
L 28
318
129
452
75 3
56
4.12
. HIV
AN
D A
IDS
& H
EALT
H P
RO
MO
TIO
N P
RO
GR
AM
MES
TAB
LE 4
.12.
1 St
eps
take
n to
redu
ce th
e ris
k of
occ
upat
iona
l exp
osur
e
Units/categoriesofemployeesidentifi
edto
beathighris
kof
contractingHIV&re
lateddiseases(ifany)
Key
ste
ps ta
ken
to re
duce
the
risk
Empl
oyee
s at
Dep
ots
HIVANDTBEd
ucation/aw
areness;Com
binedHCTtestingcampaigns;and
Hea
lth p
rom
otio
n ta
lks
cond
ucte
d.
136
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
TAB
LE 4
.12.
2 –
Det
ails
of H
ealth
Pro
mot
ion
and
HIV
and
AID
S Pr
ogra
mm
es (t
ick
the
appl
icab
le b
oxes
and
pro
vide
the
requ
ired
info
rmat
ion)
Que
stio
nYes
No
Details,ifyes
Has
the
depa
rtmen
t des
igna
ted
a m
embe
r of t
he S
MS
to
1. implem
enttheprovisionscontainedinPartV
IEofC
hapter1
ofthePu
blicServiceRegulations,2001?Ifso,provideher/his
nam
e an
d po
sitio
n.
√M
s. L
.F. M
atu
Dire
ctor
: Em
ploy
ee H
ealth
& W
elln
ess
Doe
s th
e de
partm
ent h
ave
a de
dica
ted
Uni
t or h
as it
des
igna
ted
2. specificstaffm
emberstopromotethehealthandwell-beingof
youremployees?Ifso,indicatethenumberofemployeeswho
are
invo
lved
in th
is ta
sk a
nd th
e an
nual
bud
get t
hat i
s av
aila
ble
for t
his
purp
ose.
√Tw
enty(20)officials,includingHeadOffice,InHouseConstructionand
Regionaloffices.
Budg
et:
R2
Milli
on
Hasthedepartm
entintroducedanEmployeeAssistanceor
3. HealthPromotionProgrammeforyouremployees?Ifso,
indi
cate
the
key
elem
ents
/ser
vice
s of
this
Pro
gram
me.
√
HIV&AIDSandTB
Managem
ent
•
Hea
lth &
Pro
duct
ivity
Man
agem
ent
•
Safety,H
ealth,E
nvironm
ent,Risk&QualityManagem
ent
•
Wel
lnes
s M
anag
emen
t•
Hasthedepartm
entestablished(a)com
mittee(s)as
4. contem
platedinPartV
IE.5(e)ofC
hapter1ofthePublic
ServiceRegulations,2001?Ifso,pleaseprovidethenamesof
themem
bersofthecom
mitteeandthestakeholder(s)thatthey
repr
esen
t.
√
Has
the
depa
rtmen
t rev
iew
ed it
s em
ploy
men
t pol
icie
s an
d 5.
pr
actic
es to
ens
ure
that
thes
e do
not
unf
airly
dis
crim
inat
e againstemployeesonthebasisoftheirH
IVstatus?Ifso,listthe
empl
oym
ent p
olic
ies/
prac
tices
so
revi
ewed
. √
HIV&AIDSandTB
Managem
entP
olicy
Has
the
depa
rtmen
t int
rodu
ced
mea
sure
s to
pro
tect
HIV
-6.
po
sitiv
e em
ploy
ees
or th
ose
perc
eive
d to
be
HIV
-pos
itive
from
discrim
ination?Ifso,listthekeyelem
entsofthesemeasures.
√
Educ
atio
n se
ssio
ns o
n st
igm
a an
d di
scrim
inat
ion
Roll-outoftheHIV&AIDSandTB
Managem
entP
olicy
Doe
s th
e de
partm
ent e
ncou
rage
its
empl
oyee
s to
und
ergo
7.
VoluntaryCounsellingandTesting?Ifso,listtheresultsthatyou
have
ach
ieve
d.√
AccordingtotheGEM
Sreport,212employeesareenrolledonART
Prog
ram
me.
Has
the
depa
rtmen
t dev
elop
ed m
easu
res/
indi
cato
rs to
mon
itor
8. &evaluatetheimpactofitsHealthPromotionProgramme?Ifso,
list t
hese
mea
sure
s/in
dica
tors
.√
Sick
leav
e an
alys
is
137
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
4.13
. LA
BO
UR
REL
ATIO
NS
The
follo
win
g co
llect
ive
agre
emen
ts w
ere
ente
red
into
with
trad
e un
ions
with
in th
e de
partm
ent.
TAB
LE 4
.13.
1 C
olle
ctiv
e ag
reem
ents
for t
he p
erio
d 1
Apr
il 20
16 a
nd 3
1 M
arch
201
7
Tota
l num
ber o
f col
lect
ive
agre
emen
ts-
•C
olle
ctiv
e A
gree
men
ts a
re s
igne
d na
tiona
lly a
nd im
plem
ente
d pr
ovin
cial
ly.
TAB
LE 4
.13.
2 –
Mis
cond
uct a
nd d
isci
plin
ary
hear
ings
fina
lised
for t
he p
erio
d 1
Apr
il 20
16 a
nd 3
1 M
arch
201
7
Out
com
es o
f dis
cipl
inar
y he
arin
gsN
umbe
rPe
rcen
tage
of T
otal
Tota
lNOOUTC
OME
2610
026
TOTA
L26
100
26
Out
com
es o
f dis
cipl
inar
y he
arin
gsN
umbe
r%
of t
otal
Correctionalcounselling
10.94%
Verb
al w
arni
ng1
0.94%
Writ
ten
war
ning
76.58%
Fina
l writ
ten
war
ning
4845.12%
Susp
ende
d w
ithou
t pay
15
14.1%
Fine
00%
Dem
otio
n0
0%Dismissal(Dischargeforoperationalrequirements)
32.82%
Tran
sfer
Out
00%
Casewithdraw
n0
0%R
esig
natio
ns1
0.94%
DischargedonSec.17(3)(i)(a)ofP
SA4
3.76%
Notguilty
21.88%
TOTA
L84
77.0
8%
138
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Iftherewerenoagreements,keeptheheadingandreplacethetablewiththefollowing:
Totalnum
bero
fDisciplinaryhearingsfinalised
67%
TAB
LE 4
.13.
3 –
Type
s of
mis
cond
uct a
ddre
ssed
at d
isci
plin
ary
hear
ings
for t
he p
erio
d 1
Apr
il 20
16 a
nd 3
1 M
arch
201
7
Type
of m
isco
nduc
t N
umbe
r%
of t
otal
Abuseofsickleave
00%
Dis
hone
sty
1312.22%
Late
com
ing
00%
Assault
98.46%
Grossinsubordination
10.94%
Inso
lenc
e0
0%Intentionalornegligentdam
agetotheem
ployorclientoftheemployer,co-worker
1816.92%
Into
xica
tion
10.94%
Grossabsenteeism
1110.34%
Insu
bord
inat
ion
1110.34%
Abuseofgovernm
entvehicle
98.46%
Grossdishonesty
1312.22%
Der
elic
tion
of d
utie
s1
0.94%
Frau
d2
1.88%
Rem
unerativeWorkOutsidethePu
blicService(R
WOPS
)1
0.94%
Mis
repr
esen
tatio
n3
2.82%
Negligence
109.4%
AbuseofStateProperty
54.7%
Brin
ging
the
nam
e of
the
depa
rtmen
t int
o di
srep
ute
00%
Absenteeism
76.58%
Figh
t0
0%Th
eft
32.82%
139
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Type
of m
isco
nduc
t N
umbe
r%
of t
otal
FailuretoadheretotheCodeofConduct
10.94%
Def
amat
ion
of c
hara
cter
10.94%
Irreg
ular
and
was
tefu
l exp
endi
ture
98.46%
TAB
LE 4
.13.
4 –
Grie
vanc
es lo
dged
for t
he p
erio
d 1
Apr
il 20
16 a
nd 3
1 M
arch
201
7
Num
ber o
f grie
vanc
es a
ddre
ssed
Num
ber
Perc
enta
ge o
f Tot
alTo
tal
Notresolved
18.0
064
.29
28.0
0R
esol
ved
10.0
035
.71
28.0
0TO
TAL
28.0
010
0.00
28.0
0
TAB
LE 4
.13.
5 –
Dis
pute
s lo
dged
with
Cou
ncils
for t
he p
erio
d 1
Apr
il 20
16 a
nd 3
1 M
arch
201
7
Num
ber
% o
f Tot
alNum
berofdisputespending
133.51%
Num
berofdisputesupheld
10.27%
Tota
l num
ber o
f dis
pute
s lo
dged
277.
29%
TAB
LE 4
.13.
6 –
Strik
e ac
tions
for t
he p
erio
d 1
Apr
il 20
16 a
nd 3
1 M
arch
201
7
Tota
l num
ber o
f per
son
wor
king
day
s lo
st0
Totalcost(R’000)ofw
orkingdayslost
0Am
ount(R
’000)recoveredasaresultofnoworknopay
0
TAB
LE 4
.13.
7 –
Prec
autio
nary
sus
pens
ions
for
the
perio
d 1
Apr
il 20
16 a
nd 3
1 M
arch
201
7
Num
berofpeoplesuspended
4Num
berofpeoplewhosesuspensionexceeded30days
4Averagenumberofdayssuspended
75Costofsuspensions(R
’000)
R 1
128
742
.39
140
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
TAB
LE 4
.13.
5 –
Dis
pute
s lo
dged
with
Cou
ncils
for t
he p
erio
d 1
Apr
il 20
16 a
nd 3
1 M
arch
201
7
Num
ber
% o
f Tot
alNum
berofdisputespending
133.51%
Num
berofdisputesupheld
10.27%
Tota
l num
ber o
f dis
pute
s lo
dged
277.
29%
TAB
LE 4
.13.
6 –
Strik
e ac
tions
for t
he p
erio
d 1
Apr
il 20
16 a
nd 3
1 M
arch
201
7
Tota
l num
ber o
f per
son
wor
king
day
s lo
st0
Totalcost(R’000)ofw
orkingdayslost
0Am
ount(R
’000)recoveredasaresultofnoworknopay
0
TAB
LE 4
.13.
7 –
Prec
autio
nary
sus
pens
ions
for
the
perio
d 1
Apr
il 20
16 a
nd 3
1 M
arch
201
7
Num
berofpeoplesuspended
4
Num
berofpeoplewhosesuspensionexceeded30days
4
Averagenumberofdayssuspended
75
Costofsuspensions(R
’000)
R 1
128
742
.39
141
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
4.14
. SK
ILLS
DEV
ELO
PMEN
T
Tabl
e 4.
14.1
Tra
inin
g ne
eds
iden
tified
for t
he p
erio
d 1
Apr
il 20
16 a
nd 3
1 M
arch
201
7
Occ
upat
iona
l Cat
egor
yG
ende
rN
umbe
r of
empl
oyee
s as
at
1 A
pril
2016
Training
needsidentifi
edatstartofthere
portingperio
dLe
arne
rshi
psSk
ills
Prog
ram
mes
&
oth
er s
hort
co
urse
s
Oth
er fo
rms
of tr
aini
ngTo
tal
Legislators,seniorofficialsandmanagers
Fem
ale
197
019
70
197
Legislators,seniorofficialsandmanagers
Mal
e16
50
165
016
5Pr
ofes
sion
als
Fem
ale
260
260
26Pr
ofes
sion
als
Mal
e63
063
063
Tech
nici
ans
and
asso
ciat
e pr
ofes
sion
als
Fem
ale
830
830
83Te
chni
cian
s an
d as
soci
ate
prof
essi
onal
Mal
e16
20
162
016
2Clerks
Fem
ale
101
60
101
107
Clerks
Mal
e70
40
7074
Serv
ice
and
sale
s w
orke
rsFe
mal
e39
00
3939
Serv
ice
and
sale
s w
orke
rsM
ale
150
015
15Skille
dagricultureandfisheryworkers
Fem
ale
00
00
0Skille
dagricultureandfisheryworkers
Mal
e0
00
00
Craftandrelatedtradesworkers
Fem
ale
20
02
2Craftandrelatedtradesworkers
Mal
e13
00
1313
Plan
t and
mac
hine
ope
rato
rs a
nd a
ssem
bler
sFe
mal
e19
00
1919
Plan
t and
mac
hine
ope
rato
rs a
nd a
ssem
bler
sM
ale
690
069
69Gendersubtotals
Fem
ale
467
630
616
147
3Gendersubtotals
Mal
e55
74
390
167
561
TOTA
L10
2410
696
328
1034
142
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Tabl
e 4.
14.2
Tra
inin
g pr
ovid
ed fo
r the
per
iod
1 A
pril
2016
and
31
Mar
ch 2
017
Occ
upat
iona
l cat
egor
yM
ale
Fem
ale
Tota
lA
fric
anC
olou
red
Indi
anW
hite
Afr
ican
Col
oure
dIn
dian
Whi
teLegislators,SeniorO
fficialsand
Man
ager
s26
00
085
42
312
0
Prof
essi
onal
s33
30
244
00
082
TechniciansandAssociateProfessionals
491
01
150
00
66Clerks
159
00
028
81
01
449
Serv
ice
and
Sale
s W
orke
rs10
00
018
10
029
Skille
dAg
ricultureandFisheryW
orkers
00
00
00
00
0CraftandrelatedTradesW
orkers
210
00
200
00
41Pl
ant a
nd M
achi
ne O
pera
tors
and
Assemblers
120
00
00
00
12
Elem
enta
ry O
ccup
atio
ns20
00
020
00
040
TOTA
L33
04
03
490
62
483
9Em
ploy
ees
with
dis
abilit
ies
00
00
10
00
0
4.15
. IN
JURY
ON
DU
TY
Tabl
e 4.
15.1
Inju
ry o
n du
ty fo
r the
per
iod
1 A
pril
2016
and
31
Mar
ch 2
017.
Nat
ure
of in
jury
on
duty
Num
ber
% o
f Tot
alRequiredbasicmedicalattentiononly
2485.7%
Tem
pora
ry T
otal
Dis
able
men
t3
10.7%
Perm
anen
t Dis
able
men
t0
0%
Fata
l1
3.6%
TOTA
L28
100%
143
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
4.16
. UTI
LISA
TIO
N O
F C
ON
SULT
AN
TS
Tabl
e 4.
16.1
– R
epor
t on
man
agem
ent c
onsu
ltant
app
oint
men
ts u
sing
app
ropr
iate
d fu
nds
for t
he p
erio
d 1
Apr
il 20
16 to
31
Mar
ch 2
017
Proj
ect D
escr
iptio
nSu
pplie
r Nam
eTo
tal n
umbe
r of
con
sulta
nts
that
wor
ked
on th
e pr
ojec
t
Dur
atio
n :M
onth
sO
peni
ng
com
mitm
ent
afte
r ad
just
men
ts
Awar
d pl
us
Varia
tions
Va
lue
(2016/2017)
Tot
al
Expe
nditu
re
2016/17(Less
prio
r yea
r ac
crua
ls p
lus
curr
ent y
ear
accruals)
Clo
sing
co
mm
itmen
t (R’000)
(R’000)
(R’000)
(R’000)
(R’000)
Prog
ram
me
1
F
inal
isin
g m
ovab
le
AssetR
egister
exte
nsio
n.
EOHConsulting(P
TY)
LTD
.10
112
718
6 36
91
322
7 76
5
Supp
ort i
n co
mm
itmen
t andprojectaccounting
serv
ice
for t
he
Dep
artm
ent o
f Roa
ds
and
Publ
ic W
orks
.
EOHConsulting(P
TY)
LTD
.7
114
767
6 38
55
545
5 60
7
Supp
ort t
o Fi
nanc
e &
Prop
erty
Man
agem
ent
Bran
ch.
Pric
e W
ater
Hou
se
Coopers.
2311
7 30
113
641
11 3
999
543
Und
erta
king
fore
nsic
an
d in
vest
igat
ion
serv
ices
on
Hum
an
Res
ourc
es m
atte
rs.
Pric
e W
ater
Hou
se
Coopers.
72
05
688
3 34
32
344
Supp
ort t
o Fi
nanc
e Br
anch
.Vu
ma
Siku
nced
e AccountingSe
rvices.
111
1 01
80
1 01
80
Supp
ort t
o th
e Pr
oper
ty
Man
agem
nt b
ranc
h.Vu
ma
Siku
nced
e AccountingSe
rvices.
111
01
417
720
697
HO
D s
trate
gic
man
agem
ent s
uppo
rt.Pa
ndot
rix.
109
13 6
640
13 2
4441
9
Supp
ort t
o Fi
nanc
e &
Prop
erty
Man
agem
ent
Bran
ch.
LumokaChartered
Accountants.
1211
6 11
013
711
12 6
577
164
144
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Proj
ect D
escr
iptio
nSu
pplie
r Nam
eTo
tal n
umbe
r of
con
sulta
nts
that
wor
ked
on th
e pr
ojec
t
Dur
atio
n :M
onth
sO
peni
ng
com
mitm
ent
afte
r ad
just
men
ts
Awar
d pl
us
Varia
tions
Va
lue
(2016/2017)
Tot
al
Expe
nditu
re
2016/17(Less
prio
r yea
r ac
crua
ls p
lus
curr
ent y
ear
accruals)
Clo
sing
co
mm
itmen
t (R’000)
(R’000)
(R’000)
(R’000)
(R’000)
Variousminorjobs.
VariousConsultants.
00
00
2 32
70
35 5
7747
211
51 5
7533
539
Prog
ram
me
2Conductduedilig
ence
forvariousoffice
precinctprojectson
beha
lf of
DR
PW.
TdksConsulting.
2412
48 0
1418
888
38 6
5128
251
Qua
ntity
sur
veyi
ng
serv
ices
for p
lann
ing
& de
sign
of p
hase
2 &
3
of B
hish
o m
assa
cre
projectaspartof
Bhis
ho re
vita
lisat
ion
prog
ram
me.
Roe
leve
ld Q
uant
ity
SurveyorsCC.
--
03
699
1 84
11
858
Conductduedilig
ence
forvariousoffice
precinctprojectson
beha
lf of
DR
PW.
TdksConsulting.
2412
48 0
1418
888
38 6
5128
251
Qua
ntity
sur
veyi
ng
serv
ices
for p
lann
ing
& de
sign
of p
hase
2 &
3
of B
hish
o m
assa
cre
projectaspartof
Bhis
ho re
vita
lisat
ion
prog
ram
me.
Roe
leve
ld Q
uant
ity
SurveyorsCC.
--
03
699
1 84
11
858
145
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Proj
ect D
escr
iptio
nSu
pplie
r Nam
eTo
tal n
umbe
r of
con
sulta
nts
that
wor
ked
on th
e pr
ojec
t
Dur
atio
n :M
onth
sO
peni
ng
com
mitm
ent
afte
r ad
just
men
ts
Awar
d pl
us
Varia
tions
Va
lue
(2016/2017)
Tot
al
Expe
nditu
re
2016/17(Less
prio
r yea
r ac
crua
ls p
lus
curr
ent y
ear
accruals)
Clo
sing
co
mm
itmen
t (R’000)
(R’000)
(R’000)
(R’000)
(R’000)
Com
pilationofthe
tech
nica
l con
ditio
n as
sess
men
t thr
ough
pa
rtici
patio
n in
the
cont
ract
arra
nged
by
DR
PW.
AxysInfrastructure(Pty)
Ltd.
--
01
615
1 61
50
Tech
nica
l sup
port.
Mat
unda
The
mbi
nkos
i. -
- 0
9 49
09
490
0Variousjobs.
OtherConsultants.
--
00
15 5
640
48 0
1433
691
67 1
6230
109
Prog
ram
me
3Te
chni
cal s
uppo
rt to
the
road
s pr
ogra
mm
e.Te
chso
. -
- 1
804
01
647
157
Dep
artm
enta
l tec
hnic
al
supp
ort:
Reg
iona
l oc
cupa
tiona
l Hea
lth a
nd
safe
ty.
Pyro
-Med
cc.
--
403
789
569
622
GovernanceSu
pport
Serv
ices
.D
imen
sion
Dat
a. -
- 9
710
10 6
0516
285
4 03
0
Tech
nica
l sup
port
to
Roa
ds.
EngineeringAd
vice
Serv
ices
.
15
559
5 91
09
537
11 9
33
Variousjobs.
OtherConsultants.
--
- -
2 11
1
-
27
475
17 3
0430
149
16 7
41
146
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Proj
ect D
escr
iptio
nSu
pplie
r Nam
eTo
tal n
umbe
r of
con
sulta
nts
that
wor
ked
on th
e pr
ojec
t
Dur
atio
n :M
onth
sO
peni
ng
com
mitm
ent
afte
r ad
just
men
ts
Awar
d pl
us
Varia
tions
Va
lue
(2016/2017)
Tot
al
Expe
nditu
re
2016/17(Less
prio
r yea
r ac
crua
ls p
lus
curr
ent y
ear
accruals)
Clo
sing
co
mm
itmen
t (R’000)
(R’000)
(R’000)
(R’000)
(R’000)
Prog
ram
me
4
Supp
ort o
n H
lum
ani
Project.
Pric
e W
ater
Hou
se
Coopers.
--
- 6
943
2 88
14
062
Tech
nica
l sup
port.
BviC
onsulting
Engi
neer
s. -
- -
2 96
42
964
-
Variousjobs.
OtherConsultants.
--
- -
855
-
09
907
6 70
04
062
111
067
108
113
155
586
84 4
51
147
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Table 4.16.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2016 and 31 March 2017
Project Title Percentage ownership by HDI groups
Percentage management by HDI
groups
Number of Consultants from HDI groups that work on the project
NotApplicable NotApplicable NotApplicable NotApplicable
Table 4.16.3 – Report on consultant appointments using Donor funds for the period 1 April 2016 and 31 March 2017
Project Title Total Number of consultants that
worked on the project
Duration:
Work days
Donor and Contract value in Rand
NotApplicable NotApplicable NotApplicable NotApplicable
Total number of projects
Total individual consultants
Total duration
Work days
Donor and Contract value in Rand
NotApplicable NotApplicable NotApplicable NotApplicable
Table 4.16.4 – Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2016 and 31 March 2017
Project Title Percentage ownership by HDI groups
Percentage management by HDI groups
Number of Consultants from HDI groups that work on the project
NotApplicable NotApplicable NotApplicable NotApplicable
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4.17. Severance Packages
Table 4.17.1 Granting of employee initiated severance packages for the period 1 April 2016 and 31 March 2017
Salary band Number of applications received
Number of applications referred to the MPSA
Number of applications supported by MPSA
Number of packages approved by department
Lower skilled (Levels1-2) NotApplicable NotApplicable NotApplicable NotApplicable
SkilledLevels(3-5) NotApplicable NotApplicable NotApplicable NotApplicableHighly skilled production(Levels6-8)
NotApplicable NotApplicable NotApplicable NotApplicable
Highly skilled supervision(Levels9-12)
NotApplicable NotApplicable NotApplicable NotApplicable
Senior management (Levels13-16)
NotApplicable NotApplicable NotApplicable NotApplicable
Total NotApplicable NotApplicable NotApplicable NotApplicable
PART E: FINANCIAL INFORMATION
149
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
5. PART E: FINANCIAL INFORMATION
5.1 Report of the auditor-general to Eastern Cape Provincial Legislature on vote no. 5: Department of Roads and Public WorksReportontheauditofthefinancialstatements
Opinion
1. IhaveauditedthefinancialstatementsoftheDepartmentofRoadsandPublicWorkssetoutonpages158 to 230, which comprise the appropriation statement, the statement of financial position as at31March2017,andthestatementoffinancialperformanceandcashflowstatementfortheyearthenended,aswellasthenotestothefinancialstatements,includingasummaryofsignificantaccountingpolicies.
2. Inmyopinion,thefinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionoftheDepartmentofRoadsandPublicWorksasat31March2017,anditsfinancialperformanceandcashflowsfortheyearthenendedinaccordancewiththeModifiedCashStandardsprescribedbytheNationalTreasuryand the requirementsof thePublicFinanceManagementActofSouthAfrica (ActNo.1of1999)(PFMA)andtheDivisionofRevenueAct(ActNo.3of2016)(DoRA).
Basis for opinion
3. IconductedmyauditinaccordancewiththeInternationalStandardsonAuditing(ISAs).Myresponsibilitiesunderthosestandardsarefurtherdescribedintheauditor-general’sresponsibilitiesfortheauditofthefinancialstatementssectionofmyreport.
4. I am independent of the department in accordance with the International Ethics Standards Board forAccountants’Code of ethics for professional accountants (IESBAcode) togetherwith theethicalrequirementsthatarerelevanttomyauditinSouthAfrica.IhavefulfilledmyotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheIESBAcode.
5. IbelievethattheauditevidenceIhaveobtainedissufficientandappropriatetoprovideabasisformyopinion.
Emphasis of matters
6. Idrawattentiontothemattersbelow.Myopinionisnotmodifiedinrespectofthesematters.
Irregular expenditure
7. IrregularexpenditureofR1,6billionthathasaccumulatedoveranumberofyearsandthathasnotbeenrecoveredorwrittenoffisdisclosedinnote23.1tothefinancialstatements.IrregularexpenditureofR341,1millionincurredduringthecurrentyearisincludedintheamountdisclosed.
Fruitless and wasteful expenditure
8. FruitlessandwastefulexpenditureofR10,6millionthathasaccumulatedoveranumberofyearsandthathasnotbeenrecoveredorwrittenoffisdisclosedinnote24.1tothefinancialstatements.Fruitlessandwasteful expenditureofR1,6million incurredduring the current year is included in theamountdisclosed.
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Restatementofcorrespondingfigures
9. Asdisclosedinnote37tothefinancialstatements,thecorrespondingfiguresfor31March2016havebeenrestatedasaresultoferrors in thefinancialstatementsof thedepartmentat,andfor theyearended,31March2017.
Accruals and payables not recognised
10. Asdisclosedinnote19tothefinancialstatements,accrualsandpayables,whichexceedthepaymenttermof30daysasrequiredinTreasuryRegulation8.2.3amounttoR83,9million.Thisamount,inturn,exceedsthevotedfundstobesurrenderedofR23,1millionasperthestatementoffinancialperformancebyR60,8million.TheamountofR60,8millionwouldthereforehaveconstitutedunauthorisedexpenditurehad the amounts due been paid in a timely manner.
Other matter
11. Idrawattentiontothematterbelow.Myopinionisnotmodifiedinrespectofthismatter.
Unaudited supplementary schedules
12. Thesupplementaryinformationsetoutonpages231to242doesnotformpartofthefinancialstatementsandispresentedasadditionalinformation.Ihavenotauditedtheseschedulesand,accordingly,Idonotexpress an opinion thereon.
Responsibilitiesofthepartyresponsibleforthefinancialstatements
13. TheaccountingofficerisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewiththeModifiedCashStandardsprescribedbytheNationalTreasuryandtherequirementsofthePFMAandDoRAandforsuchinternalcontrolastheaccountingofficerdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherdueto fraud or error.
14. Inpreparingthefinancialstatements,theaccountingofficerisresponsibleforassessingthedepartment’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatingtogoingconcernandusingthegoingconcernbasisofaccountingunlesstheaccountingofficereitherintendstoliquidatethedepartmentortoceaseoperations,orhasnorealisticalternativebuttodoso.
Auditor-general’sresponsibilitiesfortheauditofthefinancialstatements
15. Myobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholeare free frommaterialmisstatement,whetherdue to fraudorerror,and to issueanauditor’s reportthatincludesmyopinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconducted inaccordancewith ISAswillalwaysdetectamaterialmisstatementwhen itexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.
16. Afurtherdescriptionofmyresponsibilities for theauditof thefinancialstatements is included in theannexuretotheauditor’sreport.
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Report on the audit of the annual performance report
Introduction and scope
17. In accordancewith the PublicAuditAct of SouthAfrica, 2004 (Act No. 25 of 2004) (PAA) and thegeneralnoticeissuedintermsthereofIhavearesponsibilitytoreportmaterialfindingsonthereportedperformanceinformationagainstpredeterminedobjectivesforselectedprogrammespresentedintheannualperformancereport. Iperformedprocedures to identifyfindingsbutnot togatherevidencetoexpress assurance.
18. Myproceduresaddressthereportedperformanceinformation,whichmustbebasedontheapprovedperformance planning documents of the department. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information.Accordingly,myfindingsdonotextendtothesematters.
19. I evaluated the usefulness and reliability of the reported performance information in accordance with thecriteriadevelopedfromtheperformancemanagementandreportingframework,asdefinedinthegeneralnotice,forthefollowingselectedprogrammespresentedintheannualperformancereportofthedepartment for the year ended 31 March 2017:
Programmes Pages in the annual performance report
Programme 2 – Public Works Infrastructure 42 –49Programme 3 - Transport Infrastructure 50– 55Programme4-ExpandedPublicWorksProgramme(EPWP) 56 – 60
20. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable andrelevant,andassessedthereliabilityofthereportedperformanceinformationtodeterminewhetheritwasvalid,accurateandcomplete.
21. I didnot identifyanymaterial findingson theusefulnessand reliability of the reportedperformanceinformation for the following programmes:
• Programme 2 – Public Works Infrastructure• Programme 3 - Transport Infrastructure• Programme4–ExpandedPublicWorksProgramme(EPWP)
Other matters
22. I draw attention to the matters below.
Achievement of planned targets
23. Refer to the annual performance report on pages 42 to 60 for information on the achievement of planned targets for the year and explanations provided for the under and over achievement of a significantnumber of targets.
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Adjustment of material misstatements
24. I identified material misstatements in the annual performance report submitted for auditing. Thesematerial misstatements were on the reported performance information of the Public Works Infrastructure andExpandedPublicWorksProgrammes.Asmanagementsubsequentlycorrectedthemisstatements,I did not raise any material findings on the usefulness and reliability of the reported performanceinformation.
Report on audit of compliance with legislation
Introduction and scope
25. Inaccordancewith thePAAandthegeneralnotice issued in termsthereof Ihavearesponsibility toreportmaterialfindingsonthecomplianceofthedepartmentwithspecificmattersinkeylegislation.Iperformedprocedurestoidentifyfindingsbutnottogatherevidencetoexpressassurance.
26. Thematerial findings in respect of the compliance criteria for theapplicable subjectmattersareasfollows:
Annualfinancialstatements
27. Thefinancialstatementssubmittedforauditingwerenotpreparedinaccordancewiththeprescribedfinancialreportingframeworkasrequiredbysection40(1)(b)ofthePFMA.Materialmisstatementsofdisclosureitemsidentifiedbytheauditorsinthesubmittedfinancialstatementwerecorrectedresultinginthefinancialstatementsreceivinganunqualifiedauditopinion.
Expenditure management
28. EffectivestepswerenottakentopreventirregularexpenditureamountingtoR341,1millionasdisclosedinnote23totheannualfinancialstatements,asrequiredbysection38(1)(c)(ii)ofthePFMAandTreasuryRegulation 9.1.1.
29. EffectivestepswerenottakentopreventfruitlessandwastefulexpenditureamountingtoR1,6millionasdisclosedinnote24totheannualfinancialstatements,incontraventionofsection38(1)(c)(ii)ofthePFMAandTreasuryRegulation9.1.1.
30. Moneyowedbythedepartmentwasnotsettledwithin30days,asrequiredbysection38(1)(f)ofthePFMAandTreasuryRegulation8.2.3.
Procurement and contract management
31. GoodsandservicesofatransactionvalueaboveR500000wereprocuredwithoutinvitingcompetitivebids,asrequiredbyTreasuryRegulations16A6.1.
32. ContractsweremodifiedwithouttheapprovalofaproperlydelegatedofficialasrequiredbyTreasuryRegulation 8.1 and 8.2.
33. Persons in service of other state departments who had a private or business interest in contracts awarded bytheDepartmentofRoadsandPublicWorksfailedtodisclosesuchinterest,asrequiredbyTreasuryRegulation16A8.4.
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Consequence management
34. Investigationswerenotconductedintoallallegationsoffinancialmisconductcommittedbyofficials,asrequiredbyTreasuryRegulation4.1.1.
Other information
35. The department’s accounting officer is responsible for the other information. The other informationcomprises the information included in the annual report. The other information does not include the financial statements, the auditor’s report thereon and those selected programmes presented in theannualperformancereportthathavebeenspecificallyreportedonintheauditor’sreport.
36. My opinion on the financial statements and findings on the reported performance information andcompliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.
37. In connection with my audit, my responsibility is to read the other information and, in doing so,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsandtheselectedprogrammespresented in theannualperformancereport,ormyknowledgeobtained in theaudit,orotherwiseappearstobemateriallymisstated.If,basedontheworkIhaveperformedontheotherinformationobtainedpriortothedateofthisauditor’sreport,Iconcludethatthereisamaterialmisstatementofthisotherinformation,Iamrequiredtoreportthatfact.Ihavenothingtoreportinthisregard.
Internalcontroldeficiencies
38. I considered internal control relevant tomy audit of the financial statements, reported performanceinformationandcompliancewithapplicablelegislation;however,myobjectivewasnottoexpressanyformofassurance thereon.Thematters reportedbeloware limited to thesignificant internalcontroldeficienciesthatresultedinthefindingsontheperformancereportandthefindingsoncompliancewithlegislation included in this report.
• The leadershipdidnotalwayshaveadequateoversightover the implementationandmonitoringofcontrolsduetoinstabilityincriticalpositions,vacanciesinkeypositionsandthenon-permanentnature of posts.
• Management has not implemented all the processes and controls to ensure compliance with laws andregulations,specificallyintheareaofsupplychainmanagement.Inadditionmanagementhasrespondedslowly in termsofaddressingconsequencemanagementasnotallcaseshavebeenfinalisedrelatingtopriorfinancialyears.
• Although the internal audit and audit committee executed their legislative mandate during thefinancialyearunderreview,thedepartmenthadrecurringmaterialfindingsoncompliance.Thiswasasaresultofleadershipnotrespondingadequatelytorecommendationsmadebytheinternalauditunit as well as the audit committee.
Other reports
39. Idrawattention to the followingengagementsconductedbyvariousparties thathad,orcouldhave,an impact on the matters reported in the department’s financial statements, reported performanceinformation,compliancewithapplicablelegislationandotherrelatedmatters.Thesereportsdidnotformpartofmyopiniononthefinancialstatementsormyfindingsonthereportedperformanceinformationor compliance with legislation.
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
40. Anindependentfirmwasappointedtoinvestigatefictitiouspaymentseffectedtodepartmentalsuppliersin March 2016. The investigation was still in progress at the date of signing this report.
East London
31 July 2017
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
6. Annexure – Auditor-general’s responsibility for the audit
1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintainprofessionalscepticismthroughoutmyauditofthefinancialstatements,andtheproceduresperformedonreportedperformanceinformationforselectedprogrammesandonthedepartment’scompliancewithrespecttotheselectedsubjectmatters.
6.1.1 Financial statements
2. Inaddition tomyresponsibility for theauditof thefinancialstatementsasdescribed in theauditor’sreport,Ialso:
• identifyandassesstherisksofmaterialmisstatementofthefinancialstatementswhetherduetofraud or error, design andperformaudit procedures responsive to those risks, and obtain auditevidencethatissufficientandappropriatetoprovideabasisformyopinion.Theriskofnotdetectingamaterialmisstatement resulting fromfraud ishigher than foroneresulting fromerror,as fraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
• obtain an understanding of internal control relevant to the audit in order to design audit procedures thatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessofthedepartment’sinternalcontrol.
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatesandrelateddisclosuresmadebytheaccountingofficer.
• conclude on the appropriateness of the accounting officer’s use of the going concern basis ofaccounting in the preparation of the financial statements. I also conclude, based on the auditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtonthedepartment’sabilitytocontinueasagoingconcern.IfIconcludethatamaterialuncertaintyexists,Iamrequiredtodrawattentioninmyauditor’sreporttotherelateddisclosures in the financial statementsabout thematerial uncertainty or, if suchdisclosuresareinadequate, tomodify theopinionon thefinancialstatements.Myconclusionsarebasedon theinformationavailabletomeatthedateoftheauditor’sreport.However,futureeventsorconditionsmay cause a department to cease to continue as a going concern.
• evaluate theoverallpresentation,structureandcontentof thefinancialstatements, includingthedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsin a manner that achieves fair presentation.
6.2.2 Communication with those charged with governance
3. I communicatewith the accounting officer regarding, among othermatters, the planned scope andtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthat I identify during my audit.
4. IalsoconfirmtotheaccountingofficerthatIhavecompliedwithrelevantethicalrequirementsregardingindependence,andcommunicateallrelationshipsandothermattersthatmayreasonablybethoughttohaveabearingonmyindependenceandhereapplicable,relatedsafeguards.
ANNUAL FINANCIAL STATEMENTS
157
158
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
5.2
A
NN
UA
L FI
NA
NC
IAL
STAT
EMEN
T FO
R T
HE
YEA
R E
ND
ED 3
1 M
AR
CH
201
7
5.2.
1 A
ppro
pria
tion
stat
emen
t
App
ropr
iatio
n pe
r pro
gram
me
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as %
of
finalapp
ro-
pria
tion
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
re
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00
Prog
ram
me
1.
Adm
inis
trat
ion
579,385
-(9,273)
570,112
561,730
8,382
98.5%
521,880
512,291
2.
Publ
ic W
orks
In
fras
truc
ture
1,391,550
-(32,628)
1,358,922
1,358,922
-100%
1,276,821
1,254,683
3.
Tran
spor
t Inf
rast
ruct
ure
2,052,199
-25,679
2,077,878
2,063,130
14,748
99.3%
2,002,784
2,001,953
4.
Expa
nded
Pub
lic W
orks
Prog
ram
me
572,725
-16,222
588,947
588,947
-100%
579,946
579,156
Sub-
tota
l4,
595,
859
--
4,59
5,85
94,
572,
729
23,1
3099
.5%
4,38
1,43
14,
348,
083
Stat
utor
y A
ppro
pria
tion
--
--
--
--
-
Tota
l4,
595,
859
--
4,59
5,85
94,
572,
729
23,1
3099
.5%
4,38
1,43
14,
348,
083
Recon
ciliatio
nwith
statemento
ffinancialperform
ance
AD
D
Dep
artm
enta
l rec
eipt
s-
706
Actualamou
ntspers
tatemento
ffinancialperform
ance(totalre
venu
e)4,
595,
859
4,38
2,13
7
Actualamou
ntspers
tatemento
ffinancialperform
ance(totalexpenditure)
4,57
2,72
94,
348,
083
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
159
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
App
ropriatio
npere
cono
micclassificatio
n20
16/1
720
15/1
6
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00Ec
onom
icclassificatio
nC
urre
nt p
aym
ents
3,10
4,76
5(5,233)
(4,363)
3,09
5,16
93,
078,
875
16,2
9499
.5%
3,10
9,24
93,
107,
862
Com
pensationofemployees
1,177,850
(60,366)
(2,056)
1,115,428
1,115,428
-100%
1,046,188
1,045,591
Sala
ries
and
wag
es1,049,588
(62,602)
(3,206)
983,780
983,780
-100%
922,554
921,957
Soci
al c
ontri
butio
ns128,262
2,236
1,150
131,648
131,648
-100%
123,634
123,634
Goodsandservices
1,926,915
53,656
(2,307)
1,978,264
1,961,970
16,294
99.2%
2,058,412
2,057,622
Administrativefees
360
(161)
-19
919
9-
100%
428
428
Advertising
2,988
(456)
(265)
2,267
2,267
-100%
5,486
5,486
Min
or a
sset
s3,534
(1,854)
-1,680
1,680
-100%
2,387
2,387
Auditcosts:E
xternal
12,229
-(2,497)
9,732
9,732
-100%
13,276
13,276
Burs
arie
s: E
mpl
oyee
s4,744
(612)
(1,330)
2,802
2,802
-100%
1,917
1,917
Catering:Departmental
activ
ities
3,773
209
-3,982
3,982
-100%
5,241
5,241
Com
munication(G&S
)14,434
(473)
-13,961
13,961
-100%
12,227
12,227
Com
puterservices
44,510
(8,789)
(6,247)
29,474
29,474
-100%
29,734
29,734
Consultants:Businessand
advi
sory
ser
vice
s98,266
42,937
(2,171)
139,032
137,486
1,546
98.9%
116,012
116,012
Infra
stru
ctur
e an
d pl
anni
ng
serv
ices
75,764
(23,831)
-51,933
51,933
-100%
63,009
63,009
Labo
rato
ry s
ervi
ces
8561
-14
614
6-
100%
240
240
Lega
l ser
vice
s6,616
(3,127)
(1,219)
2,270
2,270
-100%
7,245
7,245
Contractors
988,604
69,099
11,018
1,068,721
1,053,973
14,748
98.6%
1,088,297
1,087,507
Fleetservices(including
governmentm
otortransport)
Inventory:Clothingmaterial
and
acce
ssor
ies
26,623
2,080
35,893 (99)
3,179 -
65,695
1,981
65,695
1,981
- -
100%
100%
80,670
4,824
80,670
4,824
Inventory:Fuel,oilandgas
23,143
(23,143)
--
--
100%
--
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
160
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
App
ropriatio
npere
cono
micclassificatio
n20
16/1
720
15/1
6
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00In
vent
ory:
Lea
rner
and
te
ache
r sup
port
mat
eria
l33
5(335)
--
--
--
-
Inve
ntor
y: M
ater
ials
and
su
pplie
s7,616
(4,277)
-3,339
3,339
-100%
31,808
31,808
Inve
ntor
y: O
ther
sup
plie
s2,561
(2,561)
--
--
100%
--
Consumablesupplies
13,439
(6,271)
-7,168
7,168
-100%
3.91
73,917
Consumable:S
tationery,
printingandofficesupplies
5,582
(778)
-4,804
4,804
-100%
5,524
5,524
Ope
ratin
g le
ases
260,986
(29,637)
(3,581)
227,768
227,768
-100%
229,826
229,826
Prop
erty
pay
men
ts224,918
(10,885)
(3,106)
210,927
210,927
-100%
199,222
199,222
Trav
el a
nd s
ubsi
sten
ce51,572
18,157
1,203
70,932
70,932
-100%
89,604
89,604
Trai
ning
and
dev
elop
men
t12,168
(2,417)
-9,751
9,751
-100%
14,801
14,801
Ope
ratin
g pa
ymen
ts6,625
(1,250)
2,787
8,162
8,162
-100%
4,695
4,695
Venu
es a
nd fa
cilit
ies
2,989
(413)
-2,576
2,576
-100%
4,450
4,450
Ren
tal a
nd h
iring
30,371
8,669
(78)
38,962
38,962
-100%
43,572
43,572
Inte
rest
and
rent
on
land
-1,477
-1,477
1,477
-100%
4,649
4,649
Inte
rest
-1,477
-1,477
1,477
-100%
4,649
4,649
Tran
sfer
s an
d su
bsid
ies
317,
977
2,38
650
532
0,86
832
0,86
8-
100%
283,
230
260,
848
Prov
ince
s an
d m
unic
ipal
ities
286,022
-40
7286,429
286,429
-100%
252,020
231,367
Prov
ince
s3,500
-63
04,130
4,130
-100%
4,410
4,410
Prov
inci
al a
genc
ies
and
fund
s3,500
-63
04,130
4,130
-100%
4,410
4,410
Mun
icip
aliti
es282,522
-(223)
282,299
282,299
-100%
247,610
226,957
Mun
icip
al a
genc
ies
and
fund
s282,522
-(223)
282,299
282,299
-100%
247,610
226,957
Hou
seho
lds
31,955
2,386
9834,439
34,439
-100%
31,210
29,481
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
161
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
App
ropriatio
npere
cono
micclassificatio
n20
16/1
720
15/1
6
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00So
cialbenefits
26,614
1,627
5928,300
28,300
-100%
25,089
23,360
Oth
er tr
ansf
ers
to
hous
ehol
ds5,341
759
396,139
6,139
-100%
6,121
6,121
Paym
ents
for c
apita
l ass
ets
1,17
3,11
72,
847
1,88
81,
177,
852
1,17
1,01
66,
836
99.4
%98
8,14
197
8,56
2Bu
ildingsandotherfixed
stru
ctur
es1,119,458
3,220
15,750
1,138,428
1,138,428
-100%
940,890
940,890
Build
ings
1,107,458
3,220
21,189
1,131,867
1,131,867
-100%
936,692
936,692
Otherfixedstructures
12,000
-(5,439)
6,561
6,561
-100%
4,198
4,198
Machineryandequipment
49,606
(373)
(11,562)
37,671
32,588
5,083
86.5%
47,251
37,672
Transportequipment
18,938
(957)
(9,894)
8,087
8,087
-100%
16,767
16,767
Oth
er m
achi
nery
and
equipm
ent
30,668
584
(1,668)
29,584
24,501
5,083
82.8%
30,484
20,905
Softw
are
and
othe
r int
angi
ble
asse
ts4,053
-(2,300)
1,753
-1,753
--
-
Paym
entforfinancialassets
--
1,97
01,
970
1,97
0-
100%
811
811
Tota
l4,
595,
859
--
4,59
5,85
94,
572,
729
23,1
3099
.5%
4,38
1,43
14,
348,
083
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
162
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Prog
ram
me
1: A
dmin
istr
atio
n20
16/1
720
15/1
6
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00Su
b pr
ogra
mm
eOfficeoftheMEC
1.
11,653
(2,606)
-9,047
9,047
-100%
9,181
9,181
Man
agem
ent o
f the
2.
Dep
artm
ent
29,641
(195)
(430)
29,016
29,016
-100%
16,148
16,148
CorporateSupport
3.
538,091
2,801
(8,843)
532,049
523,667
8,382
98.4%
496,551
486,962
Tota
l for
sub
pro
gram
mes
579,
385
-(9,273)
570,
112
561,
730
8,38
298
.5%
521,
880
512,
291
Econ
omicclassificatio
nC
urre
nt p
aym
ents
515,
110
(2,386)
(5,304)
507,
420
505,
874
1,54
699
.7%
468,
809
468,
809
Com
pensationofemployees
346,457
1,049
11,541
359,047
359,047
-100%
316,577
316,577
Sala
ries
and
wag
es306,938
1,037
8,853
316,828
316,828
-100%
279,959
279,959
Soci
al c
ontri
butio
ns39,519
122,688
42,219
42,219
-100%
36,618
36,618
Goodsandservices
168,653
(6,882)
(16,845)
146,896
145,350
1,546
98.9%
152,232
152,232
Administrativefees
110
(9)
-10
110
1-
100%
136
136
Advertising
1,982
(468)
(265)
1,249
1,249
-100%
3,844
3,844
Min
or a
sset
s1,240
231
-1,471
1,471
-100%
1,442
1,442
Auditcosts:E
xternal
12,229
-(2,497)
9,732
9,732
-100%
13,276
13,276
Burs
arie
s: E
mpl
oyee
s4,744
(612)
(1,330)
2,802
2,802
-100%
1,917
1,917
Catering:Departmental
activ
ities
1,710
(223)
-1,487
1,487
-100%
1,497
1,497
Com
munication(G&S
)12,477
610
-13,087
13,087
-100%
10,074
10,074
Com
puterservices
43,863
(8,993)
(6,247)
28,623
28,623
-100%
25,423
25,423
Consultants:Businessand
advi
sory
ser
vice
s36,950
16,616
(151)
53,415
51,869
1,546
97.1%
54,330
54,330
Lega
l ser
vice
sContractors
6,391
402
(2,953)
173
(1,219) -
2,219
575
2,219
575
- -100%
100%
7,036
347
7,036
347
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
163
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Prog
ram
me
1: A
dmin
istr
atio
n20
16/1
720
15/1
6
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00Fleetservices(including
governmentm
otortransport)
-1,324
-1,324
1,324
-100%
--
Inventory:Clothingmaterial
and
acce
ssor
ies
--
--
--
-93
93
Inve
ntor
y: M
ater
ials
and
su
pplie
s10
(6)
-4
4-
100%
4444
Consumablesupplies
1,190
34-
1,224
1,224
-100%
1,528
1,528
Consumable:S
tationery,
printingandofficesupplies
3,420
(436)
-2,984
2,984
-100%
3,206
3,206
Ope
ratin
g le
ases
12,159
(10,310)
-1,849
1,849
-100%
1,779
1,779
Prop
erty
pay
men
ts3,000
(199)
(1,372)
1,429
1,429
-100%
1,322
1,322
Trav
el a
nd s
ubsi
sten
ce17,106
566
(378)
17,294
17,294
-100%
18,833
18,833
Trai
ning
and
dev
elop
men
t6,134
(2,270)
-3,864
3,864
-100%
3,709
3,709
Ope
ratin
g pa
ymen
ts2,218
(13)
(1,338)
867
867
-100%
724
724
Venu
es a
nd fa
cilit
ies
1,048
52-
1,100
1,100
-100%
1,476
1,476
Ren
tal a
nd h
iring
270
4(78)
196
196
-100%
196
196
Int
eres
t and
rent
on
land
-1,477
-1,477
1,477
100%
--
Inte
rest
-
1,477
-1,477
1,477
100%
--
Tran
sfer
s an
d su
bsid
ies
26,0
182,
386
1,73
930
,143
30,1
43-
100%
24,0
0223
,992
Hou
seho
lds
26,018
2,386
1,739
30,143
30,143
-100%
24,002
23,992
Socialbenefits
20,677
1,627
1,739
24,043
24,043
-100%
17,921
17,911
Oth
er tr
ansf
ers
to
hous
ehol
ds5,341
759
-6,100
6,100
-100%
6,081
6,081
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
164
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Prog
ram
me
1: A
dmin
istr
atio
n20
16/1
720
15/1
6
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00Pa
ymen
ts fo
r cap
ital a
sset
s38
,257
-(7,678)
30,5
7923
,743
6,83
677
.6%
28,2
5818
,679
Machineryandequipment
34,204
-(5,378)
28,826
23,743
5,083
82.4%
28,258
18,679
Transportequipment
4,048
-(2,431)
1,617
1,617
-100%
453
453
Oth
er m
achi
nery
and
equipm
ent
30,156
-(2,947)
27,209
22,126
5,083
81.3%
27,805
18,226
Softw
are
and
othe
r int
angi
ble
asse
ts4,053
-(2,300)
1,753
-1,753
--
-
Paym
entforfinancialassets
--
1,97
01,
970
1,97
0-
100%
811
811
Tota
l57
9,38
5-
(9,273)
570,
112
561,
730
8,38
298
.5%
521,
880
512,
291
1.1OfficeoftheMEC
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts11
,653
(2,606)
-9,
047
9,04
7-
100%
9,18
19,
181
Com
pensationofemployees
7,871
(1,374)
-6,497
6,497
-100%
6,523
6,523
Goodsandservices
3,782
(1,232)
-2,550
2,550
-100%
2,658
2,658
Tota
l11
,653
(2,606)
-9,
047
9,04
7-
100%
9,18
19,
181
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
165
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
1.2
Man
agem
ent o
f the
Dep
artm
ent
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts29
,211
(195)
-29
,016
29,0
16-
100%
16,0
6116
,061
Com
pensationofemployees
14,207
(2,845)
-11,362
11,362
-100%
11,243
11,243
Goodsandservices
15,004
2,650
-17,654
17,654
-100%
4,818
4,818
Paym
ents
for c
apita
l ass
ets
430
-(430)
--
--
8787
Machineryandequipment
430
-(430)
--
--
8787
Tota
l29
,641
(195)
(430)
29,0
1629
,016
-10
0%16
,148
16,1
48
1.3
Cor
pora
te S
uppo
rt20
16/1
720
15/1
6
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts47
4,24
6(1,555)
(3,334)
469,
357
467,
811
1,54
699.7%
443,
567
443,
567
Com
pensationofemployees
324,379
5,268
11,541
341,188
341,188
-100%
298,811
298,811
Goodsandservices
149,867
(8,300)
(14,875)
126,692
125,146
1,546
98.8%
144,756
144,756
Inte
rest
and
rent
on
land
-
1,477
-1,477
1,477
-100%
--
Tran
sfer
s an
d su
bsid
ies
26,0
182,
386
1,73
930
,143
30,1
43-
100%
24,0
0223
,992
Hou
seho
lds
26,018
2,386
1,739
30,143
30,143
-100%
24,002
23,992
Paym
ents
for c
apita
l ass
ets
37,8
27-
(7,248)
30,5
7923
,743
6,83
677
.6%
28,1
7118
,592
Machineryandequipment
33,774
-(4,948)
28,826
23,743
5,083
82.4%
28,171
18,592
Softw
are
and
othe
r int
angi
ble
asse
ts4,053
-(2,300)
1,753
-1,753
--
-
Paym
entforfinancialassets
--
1,97
01,
970
1,97
0-
100%
811
811
Tota
l53
8,09
12,
801
(8,843)
532,
049
523,
667
8,38
298
.4%
496,
551
486,
962
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
166
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Prog
ram
me
2: P
ublic
Wor
ks In
fras
truc
ture
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00Su
b pr
ogra
mm
ePr
ogra
mm
e Su
ppor
t1.
142,074
9,776
(20,884)
130,966
130,966
-100%
124,717
123,268
Plan
ning
2.
4,921
(1,862)
(29)
3,030
3,030
-100%
4,471
4,438
Des
ign
3.
--
--
--
-63,117
63,117
Construction
4.
248,835
3,035
63251,933
251,933
-100%
202,107
202,104
Mai
nten
ance
5.
175,065
862
(1,352)
174,575
174,575
-100%
163,932
163,932
ImmovableAsset
6. M
anag
emen
t680,238
(2,227)
(7,787)
670,224
670,224
-100%
607,572
586,919
Faci
lity
Ope
ratio
ns7.
140,417
(9,584)
(2,639)
128,194
128,194
-100%
110,905
110,905
Tota
l for
sub
pro
gram
mes
1,39
1,55
0-
(32,628)
1,35
8,92
21,
358,
922
-10
0%1,
276,
821
1,25
4,68
3Ec
onom
icclassificatio
nC
urre
nt p
aym
ents
898,
836
(2)
(27,377)
871,
457
871,
457
-10
0%80
2,32
580
2,28
9Com
pensationofemployees
380,348
(1,459)
(25,212)
353,677
353,677
-100%
338,009
337,973
Sala
ries
and
wag
es340,541
(5,716)
(22,679)
312,146
312,146
-100%
297,755
297,719
Soci
al c
ontri
butio
ns39,807
4,257
(2,533)
41,531
41,531
-100%
40,254
40,254
Goodsandservices
518,488
1,457
(2,165)
517,780
517,780
-100%
459,667
459,667
Administrativefees
250
(152)
-98
98-
100%
116
116
Advertising
216
304
-52
052
0-
100%
385
385
Min
or a
sset
s36
9(318)
-51
51-
100%
334
334
Catering:Departmental
activ
ities
458
(161)
-29
729
7-
100%
532
532
Com
munication(G&S
)-
--
--
--
639
639
Com
puterservices
180
(6)
-17
417
4-
100%
1717
Consultants:Businessand
advi
sory
ser
vice
s34,291
28,592
-62,883
62,883
-100%
21,991
21,991
Contractors
200
(20)
-18
018
0-
100%
2222
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
167
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Prog
ram
me
2: P
ublic
Wor
ks In
fras
truc
ture
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00Fleetservices(including
governmentm
otortransport)
--
3,179
3,179
3,179
-100%
3737
Inventory:Clothingmaterial
and
supp
lies
1,600
(1,581)
-19
19-
100%
294
294
Inve
ntor
y: M
ater
ials
and
su
pplie
s57
(57)
--
--
-22
22
Inve
ntor
y: O
ther
sup
plie
s1,600
(1,600)
--
--
--
-Consumablesupplies
Consumable:S
tationery,
printingandofficesupplies
1,091
352
(59)
(25)
- -1,032
327
1,032
327
- -100%
100%
455
589
455
589
Ope
ratin
g le
ases
246,702
(18,068)
(3,581)
225,053
225,053
-100%
224,531
224,531
Prop
erty
pay
men
ts218,317
(9,981)
(1,734)
206,602
206,602
-100%
190,904
190,904
Trav
el a
nd s
ubsi
sten
ce7,887
4,559
(29)
12,417
12,417
-100%
16,072
16,072
Trai
ning
and
dev
elop
men
t39
4(379)
-15
15-
100%
245
245
Ope
ratin
g pa
ymen
ts90
192
8-
1,829
1,829
-100%
2,295
2,295
Venu
es a
nd fa
cilit
ies
583
(371)
-21
221
2-
100%
187
187
Ren
tal a
nd h
iring
3,040
(148)
-2,892
2,892
-100%
--
Inte
rest
and
rent
on
land
--
--
--
-4,649
4,649
Inte
rest
pai
d-
--
--
--
4,649
4,649
Tran
sfer
s an
d su
bsid
ies
282,
522
-(192)
282,
330
282,
330
-10
0%24
9,11
022
7,00
8Pr
ovin
ces
and
mun
icip
aliti
es282,522
-(223)
282,299
282,299
-100%
247,610
226,957
Mun
icip
aliti
es282,522
-(223)
282,299
282,299
-100%
247,610
226,957
Mun
icip
al a
genc
ies
and
fund
s282,522
-(223)
282,299
282,299
-100%
247,610
226,957
Hou
seho
lds
--
3131
31-
100%
1,500
51So
cialbenefits
--
3131
31-
100%
1,500
51Pa
ymen
ts fo
r cap
ital a
sset
s21
0,19
22
(5,059)
205,
135
205,
135
-10
0%22
5,38
622
5,38
6
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
168
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Prog
ram
me
2: P
ublic
Wor
ks In
fras
truc
ture
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00Bu
ildingsandotherfixed
stru
ctur
es200,375
804
193
201,372
201,372
-100%
225,012
225,012
Build
ings
200,375
804
193
201,372
201,372
-100%
225,012
225,012
Machineryandequipment
9,817
(802)
(5,252)
3,763
3,763
-100%
374
374
Transportequipment
Oth
er m
achi
nery
and
equipm
ent
9,790 27
(866)
64(5,278)
263,646
117
3,646
117
- -100%
100%
-37
4-
374
Tota
l1,
391,
550
-(32,628)
1,35
8,92
21,
358,
922
-10
0%1,
276,
821
1,25
4,68
3
2.1
Prog
ram
me
Supp
ort
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts14
2,07
49,
776
(20,884)
130,
966
130,
966
-10
0%12
3,22
212
3,22
2Com
pensationofemployees
121,749
(1,430)
(20,884)
99,435
99,435
-100%
111,149
111,149
Goodsandservices
20,325
11,206
-31,531
31,531
-100%
12,073
12,073
Tran
sfer
s an
d su
bsid
ies
--
--
--
-1,
495
46H
ouse
hold
s-
--
--
--
1,495
46To
tal
142,
074
9,77
6(20,884)
130,
966
130,
966
-10
0%12
4,71
712
3,26
8
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
169
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
2.2
Plan
ning
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts4,
921
(1,862)
(29)
3,03
03,
030
-10
0%4,
471
4,43
8Com
pensationofemployees
4,330
(1,622)
-2,708
2,708
-100%
4,183
4,150
Goodsandservices
591
(240)
(29)
322
322
-100%
288
288
Tota
l4,
921
(1,862)
(29)
3,03
03,
030
-10
0%4,
471
4,43
8
2.3
Des
ign
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Paym
ents
for c
apita
l ass
ets
--
--
--
-63
117
63 1
17Bu
ildingsandotherfixed
stru
ctur
es-
--
--
--
63 1
1763
117
Tota
l-
--
--
--
63 1
1763
117
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
170
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
2.4
Con
stru
ctio
n20
16/1
720
15/1
6
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts38
,735
3,03
25,
148
46,9
1549
,915
-10
0%40
191
40 1
88Com
pensationofemployees
35,205
2,504
-37,709
37,709
-100%
30 4
0530
402
Goodsandservices
3,530
528
5,148
9,206
9,206
-100%
5 13
75
137
Inte
rest
and
rent
on
land
--
--
--
- 4
649
4 6
49Pa
ymen
ts fo
r cap
ital a
sset
s21
0,10
03
(5,085)
205,
018
205,
018
-100%
161
916
161
916
Buildingsandotherfixed
stru
ctur
es200,310
869
193
201,372
201,372
-100%
161
895
161
895
Machineryandequipment
9,790
(866)
(5,278)
3,646
3,646
-100%
2121
Tota
l24
8,83
53,
035
6325
1,93
325
1,93
3-
100%
202
107
202
104
2.5
Mai
nten
ance
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts17
5,06
586
2(1,352)
174,
575
174,
575
-10
0%16
3,62
316
3,62
3Com
pensationofemployees
141,765
(715)
(1,352)
139,698
139,698
-100%
119,424
119,424
Goodsandservices
33,300
1,577
-34,877
34,877
-100%
44,199
44,199
Paym
ents
for c
apita
l ass
ets
--
--
--
-30
930
9Machineryandequipment
--
--
--
-30
930
9To
tal
175,
065
862
(1,352)
174,
575
174,
575
-10
0%16
3,93
216
3,93
2
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
171
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
2.6
Imm
ovab
le A
sset
Man
agem
ent
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts39
7,71
6(2,227)
(7,595)
387,
894
387,
894
-10
0%35
9,93
335
9,93
3Com
pensationofemployees
42,285
(196)
(2,045)
40,044
40,044
-100%
38,556
38,556
Goodsandservices
355,431
(2,031)
(5,550)
347,850
347,850
-100%
321,377
321,377
Tran
sfer
s an
d su
bsid
ies
282,
522
-(192)
282,
330
282,
330
-10
0%24
7,61
022
6,95
7Pr
ovin
ces
and
mun
icip
aliti
es282,522
-(223)
282,299
282,299
-100%
247,610
226,957
Hou
seho
lds
--
3131
31-
100%
--
Paym
ents
for c
apita
l ass
ets
--
--
--
-29
29Machineryandequipment
--
--
--
-29
29To
tal
680,
238
(2,227)
(7,787)
670,
224
670,
224
-10
0%60
7,57
258
6,91
9
2.7
Faci
lity
Ope
ratio
ns20
16/1
720
15/1
6
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts14
0,32
5(9,583)
(2,665)
128,
077
128,
077
-10
0%11
0,88
511
0,88
5Com
pensationofemployees
35,014
-(931)
34,083
34,083
-100%
34,292
34,292
Goodsandservices
105,311
(9,583)
(1,734)
93,994
93,994
-100%
76,593
76,593
Tran
sfer
s an
d su
bsid
ies
--
--
--
-5
5H
ouse
hold
s-
--
--
--
55
Paym
ents
for c
apita
l ass
ets
92(1)
2611
711
7-
100%
1515
Buildingsandotherfixed
stru
ctur
es65
(65)
--
--
--
-
Machineryandequipment
2764
2611
711
7-
100%
1515
Tota
l14
0,41
7(9,584)
(2,639)
128,
194
128,
194
-10
0%11
0,90
511
0,90
5
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
172
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Prog
ram
me
3: T
rans
port
Infr
astr
uctu
re20
16/1
720
15/1
6
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00Su
b pr
ogra
mm
ePr
ogra
mm
e Su
ppor
t 1.
Infra
stru
ctur
e20,243
(1,945)
(1,711)
16.5
8716,587
-100%
19,070
18,800
Infra
stru
ctur
e Pl
anni
ng2.
19,595
(7,644)
4,125
16,076
16,076
-100%
16,898
16,898
Infra
stru
ctur
e D
esig
n3.
16,625
(8,039)
-8,586
8,586
-100%
13,601
13,593
Construction
4.
1,134,813
(14,813)
21,637
1,141,637
1,141,637
-100%
918,064
917,515
Mai
nten
ance
5.
753,122
47,528
992
801,642
786,894
14,748
98.2%
918,022
918,022
Mec
hani
cal
6.
107,801
(15,087)
636
93,350
93,350
-100%
117,129
117,125
Tota
l for
sub
pro
gram
mes
2,05
2,19
9-
25,6
792,
077,
878
2,06
3,13
014
,748
99.3
%2,
002,
784
2,00
1,95
3Ec
onom
icclassificatio
nC
urre
nt p
aym
ents
1,13
5,67
9(2,845)
4,33
81,
137,
172
1,12
2,42
414
,748
98.7
%1,
270,
626
1,27
0,06
5Com
pensationofemployees
361,047
(59,956)
-301,091
301,091
-100%
299,969
299,408
Sala
ries
and
wag
es318,958
(57,393)
-261,565
261,565
-100%
260,259
259,698
Soci
al c
ontri
butio
ns42,089
(2,563)
-39,526
39,526
-100%
39,710
39,710
Goodsandservices
774,632
57,111
4,338
836,081
821,333
14,748
98.2%
970,657
970,657
Administrativefees
--
--
--
-17
617
6Ad
vertising
612
(592)
-20
20-
100%
315
315
Min
or a
sset
s1,797
(1,658)
-13
913
9-
100%
219
219
Catering:Departmental
activ
ities
150
8-
158
158
-100%
657
657
Com
munication(G&S
)1,397
(696)
-70
170
1-
100%
1,259
1,259
Com
puterservices
467
210
-67
767
7-
100%
4,294
4,294
Consultants:Businessand
advi
sory
ser
vice
s11,932
4,051
-15,983
15,983
-100%
33,726
33,726
Infra
stru
ctur
e an
d pl
anni
ng
serv
ices
75,575
(23,642)
-51,933
51,933
-100%
63,009
63,009
Labo
rato
ry s
ervi
ces
8561
-14
614
6-
100%
240
240
Lega
l ser
vice
s22
5(174)
-51
51-
100%
209
209
Contractors
571,433
60,975
213
632,621
617,873
14,748
97.7%
671,013
671,013
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
173
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Prog
ram
me
3: T
rans
port
Infr
astr
uctu
re20
16/1
720
15/1
6
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00Fleetservices(including
governmentm
otortransport)
26,623
33,679
-60,302
60,302
-100%
80,633
80,633
Inventory:Clothingmaterial
and
supp
lies
142
54-
196
196
-100%
720
720
Inventory:Fuel,oilandgas
23,143
(23,143)
--
--
100%
--
Inve
ntor
y: L
earn
er a
nd
teac
her s
uppo
rt m
ater
ial
335
(335)
--
--
--
-
Inve
ntor
y: M
ater
ials
and
su
pplie
s5,022
(2,358)
-2,664
2,664
-100%
28,676
28,676
Inve
ntor
y: O
ther
sup
plie
s91
(91)
--
--
--
-Consumablesupplies
2,173
(31)
-2,142
2,142
-100%
652
652
Consumable:S
tationery,
printingandofficesupplies
1,569
(435)
-1,134
1,134
-100%
1,209
1,209
Ope
ratin
g le
ases
2,125
(1,848)
-27
727
7-
100%
3,492
3,492
Prop
erty
pay
men
ts3,601
(705)
-2,896
2,896
-100%
6,949
6,949
Trav
el a
nd s
ubsi
sten
ce14,794
7,765
-22,559
22,559
-100%
27,223
27,223
Trai
ning
and
dev
elop
men
t78
0(537)
-24
324
3-
100%
1,356
1,356
Ope
ratin
g pa
ymen
tsVe
nues
and
faci
litie
sR
enta
l and
hiri
ngTr
ansf
ers
and
subs
idie
s Pr
ovin
ces
and
mun
icip
aliti
esPr
ovin
ces
3,249
286
27,026
9,43
73,500
3,500
(2,076)
(190)
8,819 - - -
4,125 - -
(1,042)
630
630
5,298 96
35,845
8,39
54,130
4,130
5,298 96
35,845
8,39
54,130
4,130
- - - - - -
100%
100%
100%
100%
100%
100%
1,260
332
43,038
10,1
064,410
4,410
1,260
332
43,038
9,83
64,410
4,410
Prov
inci
al a
genc
ies
and
fund
s3,500
-63
04,130
4,130
-100%
4,410
4,410
Hou
seho
lds
5,937
-(1,672)
4,265
4,265
-100%
5,696
5,426
Socialbenefits
5,937
-(1,711)
4,226
4,226
-100%
5,656
5,386
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
174
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Prog
ram
me
3: T
rans
port
Infr
astr
uctu
re20
16/1
720
15/1
6
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00O
ther
tran
sfer
s to
ho
useh
olds
--
3939
39-
100%
4040
Paym
ents
for c
apita
l ass
ets
907,
083
2,84
522
,383
932,
311
932,
311
-10
0%72
2,05
272
2,05
2Bu
ildingsandotherfixed
stru
ctur
es907,083
2,416
20,996
930,495
930,495
-100%
711,680
711,680
Build
ings
907,083
2,416
20,996
930,495
930,495
-100%
711,680
711,680
Machineryandequipment
-42
91,387
1,816
1,816
-100%
10,372
10,372
Transportequipment
--
--
--
-8,625
8,625
Oth
er m
achi
nery
and
equipm
ent
-42
91,387
1,816
1,816
-100%
1,747
1,747
Tota
l2,
052,
199
-25
,679
2,07
7,87
82,
063,
130
14,7
4899
.3%
2,00
2,78
42,
001,
953
3.1
Prog
ram
me
Supp
ort I
nfra
stru
ctur
e20
16/1
720
15/1
6
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts14
,306
(1,945)
-12
,361
12,3
61-
100%
13,4
3513
,435
Com
pensationofemployees
632
(159)
-47
347
3-
100%
714
714
Goodsandservices
13,674
(1,786)
-11,888
11,888
-100%
12,721
12,721
Tran
sfer
s an
d su
bsid
ies
Hou
seho
lds
5,93
7-
(1,711)
4,22
64,
226
-10
0%5,
608
5,33
85,937
-(1,711)
4,226
4,226
-100%
5,608
5,338
Paym
ents
for c
apita
l ass
ets
Machineryandequipment
- -- -
- -- -
- -- -
- -27 27
27 27To
tal
20,2
43(1,945)
(1,711)
16,5
8716
,587
-10
0%19
,070
18,8
00
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
175
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
3.2
Infr
astr
uctu
re P
lann
ing
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts19
,595
(7,644)
4,12
516
,076
16,0
76-
100%
16,8
5816
,858
Com
pensationofemployees
9,739
(5,971)
-3,768
3,768
-100%
8,498
8,498
Goodsandservices
9,856
(1,673)
4,125
12,308
12,308
-100%
8,360
8,360
Tran
sfer
s an
d su
bsid
ies
--
--
--
-40
40H
ouse
hold
s-
--
--
--
4040
Tota
l19
,595
(7,644)
4,12
516
,076
16,0
76-
100%
16,8
9816
,898
3.3
Infr
astr
uctu
re D
esig
n20
16/1
720
15/1
6
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts16
,625
(8,039)
-8,
586
8,58
6-
100%
13,5
8913
,581
Com
pensationofemployees
8,134
(4,643)
-3,491
3,491
-100%
5,048
5,040
Goodsandservices
8,491
(3,396)
-5,095
5,095
-100%
8,541
8,541
Tran
sfer
s an
d su
bsid
ies
--
--
--
-12
12H
ouse
hold
s-
--
--
--
1212
Tota
l16
,625
(8,039)
-8,
586
8,58
6-
100%
13,6
0113
,593
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
176
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
3.4
Con
stru
ctio
n20
16/1
720
15/1
6
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts22
7,73
0(17,229)
-21
0,50
121
0,50
1-
100%
205,
423
204,
874
Com
pensationofemployees
128,492
(61,345)
-67,147
67,147
-100%
78,007
77,458
Goodsandservices
99,238
44,116
-143,354
143,354
-100%
127,416
127,416
Tran
sfer
s an
d su
bsid
ies
--
39
3939
-100%
3636
Hou
seho
lds
--
3939
39-
100%
3636
Paym
ents
for c
apita
l ass
ets
907,
083
2,41
621
,598
931,
097
931,
097
-10
0%71
2,60
571
2,60
5Bu
ildingsandotherfixed
stru
ctur
esMachineryandequipment
907,083 -
2,416 -
20,996 602
930,495
602
930,495
602
- -100%
100%
711,680
925
711,680
925
Tota
l1,
134,
813
(14,813)
21,6
371,
141,
637
1,14
1,63
7-
100%
918,
064
917,
515
3.5
Mai
nten
ance
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts75
3,12
247
,528
213
800,
863
786,
115
14,7
4898
.2%
910,
122
910,
122
Com
pensationofemployees
182,390
15,262
-197,652
197,652
-100%
180,159
180,159
Goodsandservices
570,732
32,266
213
603,211
588,463
14,748
97.6%
729,963
729,963
Paym
ents
for c
apita
l ass
ets
--
779
779
779
-10
0%7,
900
7,90
0Machineryandequipment
--
779
779
779
-100%
7,900
7,900
Tota
l75
3,12
247
,528
992
801,
642
786,
894
14,7
4898
.2%
918,
022
918,
022
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
177
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
3.6
Mec
hani
cal
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts10
4,30
1(15,516)
-88
,785
88,7
85-
100%
111,
199
111,
195
Com
pensationofemployees
31,660
(3,100)
-28,560
28,560
-100%
27,543
27,539
Goodsandservices
72,641
(12,416)
-60,225
60,225
-100%
83,656
83,656
Tran
sfer
s an
d su
bsid
ies
3,50
0-
630
4,13
04,
130
-10
0%4,
410
4,41
0Pr
ovin
ces
and
mun
icip
aliti
es3,500
-63
04,130
4,130
-100%
4,410
4,410
Paym
ents
for c
apita
l ass
ets
-42
96
435
435
-10
0%1,
520
1,52
0Machineryandequipment
-42
96
435
435
-100%
1,520
1,520
Tota
l10
7,80
1(15,087)
636
93,3
5093
,350
-10
0%11
7,12
911
7,12
5
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
178
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Prog
ram
me
4: E
xpan
ded
Publ
ic W
orks
Pro
gram
me
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00Su
b pr
ogra
mm
ePr
ogra
mm
e Su
ppor
t 1.
7,403
258,262
15,690
15,690
-100%
7,645
7,645
Com
munityDevelopment
2.
466,941
(935)
3,181
469,187
469,187
-100%
456,564
455,774
Inno
vatio
n an
d Em
pow
erm
ent
3.
65,336
3,031
4,829
73,196
73,196
-100%
81,730
81,730
Co-ordinationand
4. Com
plianceMonitoring
33,045
(2,121)
(50)
30,874
30,874
-100%
34,007
34,007
Tota
l for
sub
pro
gram
mes
572,
725
-16
,222
588,
947
588,
947
-10
0%57
9,94
657
9,15
6Ec
onom
icclassificatio
nC
urre
nt p
aym
ents
555,
140
-23
,980
579,
120
579,
120
-10
0%56
7,48
956
6,69
9Com
pensationofemployees
89,998
-11,615
101,613
101,613
-100%
91,633
91,633
Sala
ries
and
wag
es83,151
(530)
10,620
93,241
93,241
-100%
84,581
84,581
Soci
al c
ontri
butio
ns6,847
530
995
8,372
8,372
-100%
7,052
7,052
Goodsandservices
465,142
-12,365
477,507
477,507
-100%
475,856
475,066
Advertising
178
300
-47
847
8-
100%
942
942
Min
or a
sset
s12
8(109)
-19
19-
100%
392
392
Catering:Departmental
activ
ities
1,455
585
-2,040
2,040
-100%
2,555
2,555
Com
munication(G&S
)56
0(387)
-17
317
3-
100%
255
255
Consultants:Businessand
advi
sory
ser
vice
s15,093
(8,292)
(50)
6,751
6,751
-100%
5,965
5,965
Infra
stru
ctur
e a
nd p
lann
ing
serv
ices
189
(189)
--
--
--
-
Contractors
416,569
7,971
10,805
435,345
435,345
-100%
416,915
416,125
Fleetservices(including
governmentm
otortransport)
-89
0-
890
890
-100%
--
Inventory:Clothingmaterial
and
supp
lies
338
1,428
-1,766
1,766
-100%
3,717
3,717
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
179
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Prog
ram
me
4: E
xpan
ded
Publ
ic W
orks
Pro
gram
me
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00In
vent
ory:
Mat
eria
ls a
nd
supp
lies
2,527
(1,856)
-67
167
1-
100%
3,066
3,066
Inve
ntor
y: O
ther
sup
plie
rs87
0(870)
--
--
100%
--
Consumablesupplies
8,985
(6,215)
-2,770
2,770
-100%
1,282
1,282
Consumable:S
tationery,
printingandofficesupplies
241
118
-35
935
9-
100%
520
520
Ope
ratin
g le
ases
-58
9-
589
589
-100%
2424
Prop
erty
pay
men
ts-
--
--
--
4747
Trav
el a
nd s
ubsi
sten
ce11,785
5,267
1,610
18,662
18,662
-100%
27,476
27,476
Trai
ning
and
dev
elop
men
t4,860
769
-5,629
5,629
-100%
9,491
9,491
Ope
ratin
g pa
ymen
ts25
7(89)
-16
816
8-
100%
416
416
Venu
es a
nd fa
cilit
ies
1,072
96-
1,168
1,168
-100%
2,455
2,455
Ren
tal a
nd h
iring
35(6)
-29
29-
100%
338
338
Tran
sfer
s an
d su
bsid
ies
--
--
--
-12
12H
ouse
hold
s-
--
--
--
1212
Socialbenefits
--
--
--
-12
12Pa
ymen
ts fo
r cap
ital a
sset
s17
,585
-(7,758)
9,82
79,
827
-10
0%12
,445
12,4
45Bu
ildingsandotherfixed
stru
ctur
es12,000
-(5,439)
6,561
6,561
-100%
4,198
4,198
Otherfixedstructures
Machineryandequipment
Transportequipment
12,000
5,585
5,100
- -(91)
(5,439)
(2,319)
(2,185)
6,561
3,266
2,824
6,561
3,266
2,824
- - -
100%
100%
100%
4,198
8,247
7,689
4,198
8,247
7,689
Oth
er m
achi
nery
and
equipm
ent
485
91(134)
442
442
-100%
558
558
Tota
l57
2,72
5-
16,2
2258
8,94
758
8,94
7-
100%
579,
946
579,
156
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
180
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
4.1
Prog
ram
me
Supp
ort
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts6,
918
258,
444
15,3
8715
,387
-10
0%7,
087
7,08
7Com
pensationofemployees
3,469
-8,141
11,610
11,610
-100%
3,387
3,387
Goodsandservices
3,449
2530
33,777
3,777
-100%
3,700
3,700
Paym
ents
for c
apita
l ass
ets
485
-(182)
303
303
-10
0%55
855
8Machineryandequipment
485
-(182)
303
303
-100%
558
558
Tota
l7,
403
258,
262
15,6
9015
,690
-10
0%7,
645
7,64
5
4.2
Com
mun
ity D
evel
opm
ent
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts44
9,84
1(935)
10,8
0545
9,71
145
9,71
1-
100%
444,
677
443,
887
Com
pensationofemployees
13,000
(942)
-12,058
12,058
-100%
13,415
13,415
Goodsandservices
436,841
710,805
447,653
447,653
-100%
431,262
430,472
Paym
ents
for c
apita
l ass
ets
17,1
00-
(7,624)
9,47
69,
476
-10
0%11
,887
11,8
87Bu
ildingsandotherfixed
stru
ctur
es12,000
-(5,439)
6,561
6,561
-100%
4,198
4,198
Machineryandequipment
5,100
-(2,185)
2,915
2,915
-100%
7,689
7,689
Tota
l46
6,94
1(935)
3,18
146
9,18
746
9,18
7-
100%
456,
564
455,
774
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
181
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
4.3
Inno
vatio
n an
d Em
pow
erm
ent
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts65
,336
3,03
14,
781
73,1
4873
,148
-10
0%81
,730
81,7
30Com
pensationofemployees
46,924
3,051
3,474
53,449
53,449
-100%
47,666
47,666
Goodsandservices
18,412
(20)
1,307
19,699
19,699
-100%
34,064
34,064
Paym
ents
for c
apita
l ass
ets
--
4848
48-
100%
--
Machineryandequipment
--
4848
48-
100%
--
Tota
l65
,336
3,03
14,
829
73,1
9673
,196
-10
0%81
,730
81,7
30
4.4
Co-
ordi
natio
n an
d C
ompl
ianc
e M
onito
ring
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
l A
ppro
pria
-tio
n
Act
ual
Expe
nditu
reVa
rianc
e
Expe
nditu
re
as%offi
nal
appr
opria
-tio
n
Fina
l A
ppro
pria
-tio
n
Act
ual
expe
nditu
re
Econ
omicclassificatio
nR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00R
’000
Cur
rent
pay
men
ts33
,045
(2,121)
(50)
30,8
7430
,874
-10
0%33
,995
33,9
95Com
pensationofemployees
26,605
(2,109)
-24,496
24,496
-100%
27,165
27,165
Goodsandservices
6,440
(12)
(50)
6,378
6,378
-100%
6,830
6,830
Tran
sfer
s an
d su
bsid
ies
--
--
--
-12
12H
ouse
hold
s-
--
--
--
1212
Tota
l33
,045
(2,121)
(50)
30,8
7430
,874
-10
0%34
,007
34,0
07
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
182
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
5.2.2 Notes to the Appropriation Statement
1. DetailoftransfersandsubsidiesasperAppropriationAct(afterVirement):
DetailofthesetransactionscanbeviewedinthenoteonTransfersandsubsidies,disclosurenotesandAnnexure1(A-H)totheAnnualFinancialStatements.
2. Detailofspecificallyandexclusivelyappropriatedamountsvoted(afterVirement):
Detail of these transactionscanbeviewed innote1 (AnnualAppropriation) to theAnnualFinancialStatements.
3. Detailonpaymentsforfinancialassets
DetailofthesetransactionsperprogrammecanbeviewedinthenoteonPaymentsforfinancialassetstotheAnnualFinancialStatements.
4. ExplanationsofmaterialvariancesfromAmountsVoted(afterVirement):
4.1 Per programme
Programme Final Appropriation
Actual Expenditure
Variance R’000
Variance as a % of Final
AppropriationProgramme1:Administration 570,112 561,730 8,382 1.5%Programme 2: Public Works Infrastructure 1,358,922 1,358,922 0 0%Programme 3: Transport Infrastructure 2,077,878 2,063,130 14,748 0.7%Programme 4: Expanded Public Works Programme 588,947 588,947 0 0%
Total 4,595,859 4,572,729 23,130 0.5%
Programme 1: Administration
Under expenditure is due to the incorrect delivery of invoices for the consultants and procured laptops by the service providerthatwerenotaspertheissuedspecification.
These laptops had to be returned back to the service provider as the department could not process the invoice for paymentforincorrectitemsdelivered.AnamountofR5,084millionhasbeenrequestedtoberolledover.
Softwareandotherintangibleassets,thedepartmentprocuredservicesfortheenhancementofthePROMISsystemwhichistheintegratedprojectmanagementsystemforthedepartment.Anincorrectinvoicefortheservicesrenderedwas received by the department. The department could not process the incorrect invoice and it had to be returned back totheserviceproviderforcorrection.AnamountofR1,357millionhasbeenrequestedtoberolledover.
Programme 2: Public Works Infrastructure
N/A
NOTES TO THE APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
183
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Programme 3: Transport Infrastructure
Theunderexpenditureisduetothelateawardingofdisasterprojects(DR08121,DR08116,DR08120,DR08245,DR08119,DR08100)re-advertised(DR08017andDR08079)duetonon-responsivenessofbidderstotheconditionsofthetenderaswellasthedelaysinthecompletionofawardedproject(DR08125)duetocommunityproteststhatresultedinstoppageofwork.AnamountofR14,071millionhasbeenrequestedtoberolledover.
Programme 4: Expanded Public Works Programme
N/A
4.2 Pereconomicclassification
EconomicClassification Final Appropriation
Actual Expenditure
Variance R’000
Variance as a % of Final
Appropriation
Current expenditure
Compensationofemployees 1,115,428 1,115,428 - 0%
Goodsandservices 1,978,264 1,961,970 16,294 0.8%
Interest and rent on land 1,477 1,477 - 0%
Transfers and subsidies
Provinces and municipalities 286,429 286,429 - 0%
Households 34,439 34,439 - 0%
Payments for capital assets
Buildingsandotherfixedstructures 1,138,428 1,138,428 - 0%
Machineryandequipment 37,671 32,588 5,083 13.5%
Software and other intangible assets 1,753 - 1,753 100%
Paymentsforfinancialassets 1,970 1,970 - 0%
Theunderexpenditureundergoodsandservicesisduetothelateawardingofdisasterprojects(DR08121,DR08116,DR08120,DR08245,DR08119,DR08100),re-advertised(DR08017andDR08079)duetonon-responsivenessofbidderstotheconditionsofthetenderaswellasthedelaysinthecompletionofawardedproject(DR08125)duetocommunityproteststhatresultedinstoppageofwork.AnamountofR14,071millionhasbeenrequestedtoberolledover.
Machineryandequipmenttherecordedunderexpenditureisduetotheincorrectdeliveryoftheprocuredlaptopsbytheserviceproviderthatwerenotaspertheissuedspecification.Theselaptopshadtobereturnedbacktotheservicesproviderasthedepartmentcouldnotprocesstheinvoiceforpaymentforincorrectitemsdelivered.AnamountofR5,084millionhasbeenrequestedtoberolledover.
Softwareandotherintangibleassets,thedepartmentprocuredservicesfortheenhancementofthePROMISsystemwhichistheintegratedprojectmanagementsystemforthedepartment.Anincorrectinvoicefortheservicesrenderedwas received by the Department. The department could not process the incorrect invoice and it had to be returned backtotheserviceproviderforcorrection.AnamountofR1,357millionhasbeenrequestedtoberolledover.
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Per conditional grant Final Appropriation
Actual Expenditure Variance
Variance as a % of Final
Appropriation
R’000 R’000 R’000 %
ProvincialInfrastructureGrant 1,320,829 1,306,082 14,747 1.1%
EPWPIncentiveGrant 52,848 52,848 - 0%
Total 1,373,677 1,358,930 14,747 1.1%
The under expenditure is due to the late awarding of disaster projects DR08121,DR08116, DR08120, DR08245,DR08119,DR08100),re-advertised(DR08017andDR08079)duetonon-responsivenessofbidderstotheconditionsofthetenderaswellasthedelaysinthecompletionofawardedproject(DR08125)duetocommunityproteststhatresultedinstoppageofwork.AnamountofR14,071millionhasbeenrequestedtoberolledover.
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5.2.3 Statement of Financial Performance
Note 2016/17 2015/16R’000 R’000
REVENUEAnnualappropriation 1 4,595,859 4,381,431Departmental revenue 2 - 706
TOTAL REVENUE 4,595,859 4,382,137
EXPENDITURECurrent expenditureCompensationofemployees 3 1,115,428 1,045,591Goodsandservices 4 1,961,970 2,057,622Interest and rent on land 5 1,477 4,649
Total current expenditure 3,078,875 3,107,862
Transfers and subsidiesTransfers and subsidies 7 320,868 260,848
Total transfers and subsidies 320,868 260,848
Expenditure for capital assetsTangible assets 8 1,171,016 978,562
Total expenditure for capital assets 1,171,016 978,562
Paymentsforfinancialassets 6 1,970 811
TOTAL EXPENDITURE 4,572,729 4,348,083
SURPLUS FOR THE YEAR 23,130 34,054
Reconciliation of Net Surplus for the yearVoted funds 23,130 33,348
Annualappropriation 8,383 33,313Conditionalgrants 14,747 35
DepartmentalrevenueandNRFReceipts 2 - 706
SURPLUS FOR THE YEAR 23,130 34,054
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5.2.4 Statement of Financial Position
Note 2016/17 2015/16
R’000 R’000ASSETS
Current assets 71,743 69,730Cashandcashequivalents 9 17,403 21,456Prepayments and advances 10 6,783 9,002Receivables 11 47,557 39,272
Non-current assets 2,746 4,679Receivables 11 2,746 4,679
TOTAL ASSETS 74,489 74,409
LIABILITIES
Current liabilities 74,489 74,409Voted funds to be surrendered to the Revenue Fund 12 23,130 33,348DepartmentalrevenueandNRFReceiptstobesurrenderedtothe Revenue Fund
13 1,355 2,255
Payables 14 50,004 38,806 TOTAL LIABILITIES 74,489 74,409
NET ASSETS - -
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5.2.5. Cash Flow Statement
Note 2016/17 2015/16R’000 R’000
CASH FLOWS FROM OPERATING ACTIVITIESReceipts 4,613,334 4,398,246Annualappropriatedfundsreceived 1.1 4,595,859 4,381,431Departmental revenue received 2 17,475 16,815
Net(increase)/decreaseinworkingcapital 7,065 38,789Surrendered to Revenue Fund (64,954) (272,924)Currentpayments (3,077,398) (3,103,214)Interest paid 5 1,477 (4,649)Paymentsforfinancialassets 6 1,970 (811)Transfers and subsidies paid 7 (320,868) (260,847)Netcashflowavailablefromoperatingactivities 15 1,153,732 794,590
CASH FLOWS FROM INVESTING ACTIVITIESPayments for capital assets 8 (1,171,016) (978,562)Proceeds from sale of capital assets 2.2 13,231 9,002Netcashflowsfrominvestingactivities (1,157,785) (969,560)
CASH FLOWS FROM FINANCING ACTIVITIESIncrease/(decrease)innon-currentpayables - -Netcashflowsfromfinancingactivities - -
Netdecreaseincashandcashequivalents (4,053) (174,970)
Cashandcashequivalentsatbeginningofperiod 21,456 196,426
Cash and cash equivalents at end of period 16 17,403 21,456
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5.2.6. Accounting Policies
Summaryofsignificantaccountingpolicies
Thefinancialstatementshavebeenpreparedinaccordancewiththefollowingpolicies,whichhavebeenappliedconsistentlyinallmaterialaspects,unlessotherwiseindicated.Managementhasconcludedthatthefinancialstatementspresentfairlythedepartment’sprimaryandsecondaryinformation.
Thehistoricalcostconventionhasbeenused,exceptwhereotherwiseindicated.Managementhasusedassessmentsandestimatesinpreparingtheannualfinancialstatements.Thesearebasedonthebestinformationavailable at the time of preparation.
Whereappropriateandmeaningful,additionalinformationhasbeendisclosedtoenhancetheusefulnessofthefinancialstatementsandtocomplywiththestatutoryrequirementsofthePublicFinanceManagementAct(PFMA),Act1of1999(asamendedbyAct29of1999),andtheTreasuryRegulationsissuedintermsofthePFMAandtheannualDivisionofRevenueAct.
1 Basis of preparation
ThefinancialstatementshavebeenpreparedinaccordancewiththeModifiedCashStandardexceptwherestatedotherwise.Themodifiedcashbasisconstitutesthecashbasisofaccountingsupplementedwith additional disclosure items. Under the cash basis of accounting transactions and other events are recognised when cash is received or paid.
2 Going concern
Thefinancialstatementshavebeenpreparedonagoingconcernbasis.
3 Presentation currency
AmountshavebeenpresentedinthecurrencyoftheSouthAfricanRand(R)whichisalsothefunctionalcurrency of the department.
4 Rounding
UnlessotherwisestatedfinancialfigureshavebeenroundedtothenearestonethousandRand(R’000).
5 Comparative information
5.1 Prior period comparative information
Priorperiodcomparativeinformationhasbeenpresentedinthecurrentyear’sfinancialstatements.Wherenecessaryfiguresincludedinthepriorperiodfinancialstatementshavebeenreclassifiedtoensurethattheformatinwhichtheinformationispresentedisconsistentwiththeformatofthecurrentyear’sfinancialstatements.
5.2 Current year comparison with budget
Acomparisonbetweentheapproved,finalbudgetandactualamountsforeachprogrammeandeconomicclassificationisincludedintheappropriationstatement.
6 Revenue
6.1 Appropriated funds
Appropriatedfundscomprisesofdepartmentalallocationsaswellasdirectchargesagainsttherevenuefund(i.e.statutoryappropriation).
Appropriatedfundsarerecognisedinthestatementoffinancialperformanceonthedatetheappropriationbecomeseffective.Adjustmentsmadeintermsoftheadjustmentsbudgetprocessarerecognisedinthestatementoffinancialperformanceonthedatetheadjustmentsbecomeeffective.UnexpendedappropriatedfundsaresurrenderedtotheNational/ProvincialRevenueFund.
The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognisedasapayable/receivableinthestatementoffinancialposition.
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6.2 Departmental revenue
Departmentalrevenueisrecognisedinthestatementoffinancialperformancewhenreceivedandissubsequentlypaidintotherelevantrevenuefund,unlessstatedotherwise.
Anyamountowingtotherelevantrevenuefundatthereportingdateisrecognisedasapayableinthestatementoffinancialposition.
6.3 Accrued departmental revenue
Accrualsinrespectofdepartmentalrevenue(excludingtaxrevenue)arerecordedinthenotestothefinancialstatementswhen:
itisprobablethattheeconomicbenefitsorservicepotentialassociatedwiththetransactionwillflowto•the department; and
the amount of revenue can be measured reliably.•
The accrued revenue is measured at the fair value of the consideration receivable.
Write-offsaremadeaccordingtothedepartment’sdebtwrite-offpolicy.
7 Expenditure
7.1 Compensation of employees
7.1.1 Salaries and wages
Salariesandwagesareexpensedinthestatementoffinancialperformancewhenthefinalauthorisationforpaymentiseffectedonthesystem(bynolaterthan31Marchofeachyear).
Otheremployeebenefitsthatgiverisetoapresentlegalorconstructiveobligationaredisclosedinthedisclosurenotestothefinancialstatementsatitsfacevalueandarenotrecognisedinthestatementoffinancialperformanceorposition.
7.1.2 Social contributions
Employercontributionstopostemploymentbenefitplansinrespectofcurrentemployeesareexpensedinthestatementoffinancialperformancewhenthefinalauthorisationforpaymentiseffectedonthesystem(bynolaterthan31Marchofeachyear).
Noprovisionismadeforretirementbenefitsinthefinancialstatementsofthedepartment.AnypotentialliabilitiesaredisclosedinthefinancialstatementsoftheNationalRevenueFundandnotinthefinancialstatements of the employer department.
Employercontributionsmadebythedepartmentforcertainofitsex-employees(suchasmedicalbenefits)areclassifiedastransferstohouseholdsinthestatementoffinancialperformancewhenthefinalauthorisationforpaymentiseffectedonthesystem(bynolaterthan31Marchofeachyear).
7.2 Goods and services
Payments made during the year for goods and/or services are recognised as an expense in the statement offinancialperformancewhenthefinalauthorisationforpaymentiseffectedonthesystem(bynolaterthan31Marchofeachyear).
Theexpenseisclassifiedascapitalifthegoodsand/orserviceswereacquiredforacapitalprojectorifthetotalpurchasepriceexceedsthecapitalisationthreshold(currentlyR5,000).Allotherexpendituresareclassifiedascurrent.
Rentalpaidfortheuseofbuildingsorotherfixedstructuresisclassifiedasgoodsandservicesandnotasrent on land.
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7.3 Interest on overdue accounts and rent on land
Interestandrentalpaymentsarerecognisedasanexpenseinthestatementoffinancialperformancewhenthefinalauthorisationforpaymentiseffectedonthesystem(bynolaterthan31Marchofeachyear).Thisitemexcludesrentalfortheuseofbuildingsorotherfixedstructures.Ifitisnotpossibletodistinguishbetweenpaymentfortheuseoflandandthefixedstructuresonit,thewholeamountshouldberecordedunder goods and services.
7.4 Paymentsforfinancialassets
Debtsarewrittenoffwhenidentifiedasirrecoverable.Debtswritten-offarelimitedtotheamountofsavingsand/or underspending of appropriated funds. The write off occurs at year-end or when funds are available. Noprovisionismadeforirrecoverableamountsbutanestimateisincludedinthedisclosurenotestothefinancialstatementsamounts.
Allotherlossesarerecognisedwhenauthorisationhasbeengrantedfortherecognitionthereof.
7.5 Transfers and subsidies
Transfersandsubsidiesarerecognisedasanexpensewhenthefinalauthorisationforpaymentiseffectedonthesystem(bynolaterthan31Marchofeachyear).
7.6 Accruals and payables not recognised
Accrualsandpayablesnotrecognisedarerecordedinthenotestothefinancialstatementswhenthegoodsarereceivedor,inthecaseofservices,whentheyarerenderedtothedepartmentorinthecaseoftransfersand subsidies when they are due and payable.
Accrualsandpayablesnotrecognisedaremeasuredatcost.
7.7 Leases
7.7.1 Operating leases
Operating lease payments made during the reporting period are recognised as current expenditure in the statementoffinancialperformanceonthedateofpayment.
Theoperatingleasecommitmentsarerecordedinthenotestothefinancialstatements.
7.7.2 Finance leases
Finance lease payments made during the reporting period are recognised as capital expenditure in the statementoffinancialperformanceonthedateofpayment.
Thefinanceleasecommitmentsarerecordedinthenotestothefinancialstatementsandarenotapportioned between the capital and interest portions.
Financeleaseassetsacquiredattheendoftheleasetermarerecordedandmeasuredatthelowerof:
cost,beingthefairvalueoftheasset;or•
thesumoftheminimumleasepaymentsmade,includinganypaymentsmadetoacquireownershipat•theendoftheleaseterm,excludinginterest.
8 Cash and cash equivalents
Cashandcashequivalentsarestatedatcostinthestatementoffinancialposition.
Bankoverdraftsareshownseparatelyonthefaceofthestatementoffinancialpositionasacurrentliability.
Forthepurposesofthecashflowstatement,cashandcashequivalentscomprisecashonhand,depositsheld,othershort-termhighlyliquidinvestmentsandbankoverdrafts.
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9 Prepayments and advances
Amountsprepaidoradvancedarerecognisedinthestatementoffinancialpositionwhenthepaymentsaremade and are derecognised as and when the goods/services are received or the funds are utilised in a future period longer than one month from payment and the amount is material.
Prepaymentsandadvancesoutstandingattheendoftheyeararecarriedinthestatementoffinancialposition at cost.
Prepayments are expensed if the funds are utilised in a future period less than one month from payment.
10 Receivables
Receivablesincludedinthestatementoffinancialpositionarisefromcashpaymentsmadethatarerecoverablefromanotherparty(includingdepartmentalemployees)andarederecogniseduponrecoveryor write-off.
Receivablesoutstandingatyear-endarecarriedinthestatementoffinancialpositionatcostplusanyaccruedinterest.Amountsthatarepotentiallyirrecoverableareincludedinthedisclosurenotes.
11 Impairments
Thedepartmenttestsforimpairmentwherethereisanindicationthatareceivable,loanorinvestmentmaybeimpaired.Anassessmentofwhetherthereisanindicationofpossibleimpairmentisdoneateachreporting date.
Anestimateismadefordoubtfulloansandreceivablesbasedonareviewofalloutstandingamountsat year-end. Impairments on investments are calculated as being the difference between the carrying amountandthepresentvalueoftheexpectedfuturecashflows/servicepotentialflowingfromtheinstrument.
Thisisrecordedinthenotesthefinancialstatements.
12 Payables
Recognised payables mainly comprise of amounts owing to other governmental entities. These payables arecarriedatcostinthestatementoffinancialposition.
13 Capital Assets
13.1 Immovable capital assets
Initial recognition
Immovablecapitalassetsarerecordedinthenotestothefinancialstatementsatcostonreceiptoftheitem.Costofanassetisdefinedasthetotalcostofacquisition.
Wherethecostcannotbedeterminedaccurately,theimmovablecapitalassetsaremeasuredatfairvalue.AsperSectoralGuide:AccountingandReportingforImmovableAssets(“SectoralGuide”theDepartment has used Municipal Valuation Rolls to determine fair value in order to alleviate fruitless and wastefulexpenditure.Further,pertheSectoralGuide,whereamunicipalvaluationhasnotbeenfinalised,theaffectedpropertieswillbereflectedatthesamevalueasforexceptionalcases(R1,000).TheSectoralGuiderequiresexceptionalcasestoberecordedatR1,000.Theseexceptionalcasesare:
Road reserves•
CommunalLand•
Seashore •
AdmiraltyReserve•
Commonages•
LandParcelswithGravesandCemeteries•
Islands and offshore rock outcrops•
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Immovablecapitalassetsacquiredthroughanon-exchangetransactionismeasuredatfairvalueasatthedateofacquisition.
Immovablecapitalassetsaresubsequentlycarriedatcostorfairvalueandarenotsubjecttodepreciationor impairment.
Subsequent recognition
Work-in-progressofacapitalnatureisrecordedinthestatementoffinancialperformanceas“expenditureforcapitalassets”.Oncompletion,thetotalcostoftheprojectisincludedintheassetregisterofthedepartment that is accountable for the asset.
Repairsandmaintenanceisexpensedascurrent“goodsandservices”inthestatementoffinancialperformance.
Provincial Immovable Assets
ThedisclosurenotestothefinancialstatementsrepresenttheconsolidatedpositionoftheEasternCapeProvince immovable assets with the exception of the Human Settlements properties which in terms of TheHousingAct107of1997andTheHousingAmendmentAct4of2001remaininthecustodyoftheDepartment of Human Settlements. The above accounting policies have been applied as stated.
Wheredocumentaryevidencesupportingcompletedprovincialprojectsforthecurrentfinancialyearisconsideredtobeeitherincompleteorinaccurate,theprojectwillnotbeincluded.
13.2 Movable capital assets
Movablecapitalassetsareinitiallyrecordedinthenotestothefinancialstatementsatcost.Movablecapitalassetsacquiredthroughanon-exchangetransactionismeasuredatfairvalueasatthedateofacquisition.
Wherethecostofmovablecapitalassetscannotbedeterminedreliably,themovablecapitalassetsaremeasured at fair value and where fair value cannot be determined; the movable assets are measured at R1.
Amovableassetacquiredbefore1April2002(oranotherdateasapprovedbytheOAG)maybemeasured at R1 if its cost cannot be reliably measured and its fair value had not been determined prior to the implementation of the Standard. Where the cost or fair value has been determined the asset may be recorded at the available value instead of R1.
Movablecapitalassetsaresubsequentlycarriedatcostandarenotsubjecttodepreciationorimpairment.
Subsequentexpenditurethatisofacapitalnatureisaddedtothecostoftheassetattheendofthecapitalprojectunlessthemovableassetisrecordedbyanotherdepartment/entityinwhichcasethecompletedprojectcostsaretransferredtothatdepartment.
Repairsandmaintenanceisexpensedascurrent“goodsandservices”inthestatementoffinancialperformance.
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13.3 Intangible assets
Intangibleassetsareinitiallyrecordedinthenotestothefinancialstatementsatcost.Intangibleassetsacquiredthroughanon-exchangetransactionaremeasuredatfairvalueasatthedateofacquisition.
Internallygeneratedintangibleassetsarerecordedinthenotestothefinancialstatementswhenthedepartmentcommencesthedevelopmentphaseoftheproject.
Wherethecostofintangibleassetscannotbedeterminedreliably,theintangiblecapitalassetsaremeasured at fair value and where fair value cannot be determined; the intangible assets are measured at R1.
Allassetsacquiredpriorto1April2002(oralaterdateasapprovedbytheOAG)mayberecordedatR1.
Intangibleassetsaresubsequentlycarriedatcostandarenotsubjecttodepreciationorimpairment.
Subsequentexpenditurethatisofacapitalnatureisaddedtothecostoftheassetattheendofthecapitalprojectunlesstheintangibleassetisrecordedbyanotherdepartment/entityinwhichcasethecompletedprojectcostsaretransferredtothatdepartment.
Repairsandmaintenanceisexpensedascurrent“goodsandservices”inthestatementoffinancialperformance.
14 Provisions and Contingent Liabilities
14.1 Provisions
Provisionsarerecordedinthenotestothefinancialstatementswhenthereisapresentlegalorconstructiveobligationtoforfeiteconomicbenefitsasaresultofeventsinthepastanditisprobablethatanoutflowofresourcesembodyingeconomicbenefitsorservicepotentialwillberequiredtosettletheobligation and a reliable estimate of the obligation can be made. The provision is measured as the best estimateofthefundsrequiredtosettlethepresentobligationatthereportingdate.
14.2 Contingent liabilities
Contingentliabilitiesarerecordedinthenotestothefinancialstatementswhenthereisapossibleobligationthatarisesfrompastevents,andwhoseexistencewillbeconfirmedonlybytheoccurrenceornon-occurrence of one or more uncertain future events not within the control of the department or when thereisapresentobligationthatisnotrecognisedbecauseitisnotprobablethatanoutflowofresourceswillberequiredtosettletheobligationortheamountoftheobligationcannotbemeasuredreliably.
14.3 Employeebenefits
Short-termemployeebenefitsthatgiverisetoapresentlegalorconstructiveobligationaredisclosedinthedisclosurenotestothefinancialstatements.Theseamountsarenotrecognisedinthestatementoffinancialperformanceorthestatementoffinancialposition.
14.4 Contingent assets
Contingentassetsarerecordedinthenotestothefinancialstatementswhenapossibleassetarisesfrompastevents,andwhoseexistencewillbeconfirmedbytheoccurrenceornon-occurrenceofoneormoreuncertain future events not within the control of the department.
14.5 Commitments
Commitments(otherthanfortransfersandsubsidies)arerecordedatcostinthenotestothefinancialstatements when there is a contractual arrangement or an approval by management in a manner that raises a valid expectation that the department will discharge its responsibilities thereby incurring future expenditurethatwillresultintheoutflowofcash.
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15 Unauthorised expenditure
Unauthorisedexpenditureisrecognisedinthestatementoffinancialpositionuntilsuchtimeastheexpenditure is either:
approved by the Provincial Legislature with funding and the related funds are received; or•
approved by the Provincial Legislature without funding and is written off against the appropriation in •thestatementoffinancialperformance;or
transferred to receivables for recovery.•
Unauthorisedexpenditureismeasuredattheamountoftheconfirmedunauthorisedexpenditure.
16 Fruitless and wasteful expenditure
Fruitlessandwastefulexpenditureisrecordedinthenotestothefinancialstatementswhenconfirmed.Theamountrecordedisequaltothetotalvalueofthefruitlessandorwastefulexpenditureincurred.
Fruitlessandwastefulexpenditureisremovedfromthenotestothefinancialstatementswhenitisresolved or transferred to receivables for recovery.
Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be recoverable andarede-recognisedwhensettledorsubsequentlywritten-offasirrecoverable.
17 Irregular expenditure
Irregularexpenditureisrecordedinthenotestothefinancialstatementswhenconfirmed.Theamountrecordedisequaltothevalueoftheirregularexpenditureincurredunlessitisimpracticabletodetermine,in which case reasons therefor are provided in the note.
Irregularexpenditureisremovedfromthenotewhenitiseithercondonedbytherelevantauthority,transferred to receivables for recovery or not condoned and is not recoverable.
Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognisedwhensettledorsubsequentlywritten-offasirrecoverable.
18 Changes in accounting policies, accounting estimates and errors
ChangesinaccountingpoliciesthatareeffectedbymanagementhavebeenappliedretrospectivelyinaccordancewithMCSrequirements,excepttotheextentthatitisimpracticabletodeterminetheperiod-specificeffectsortheMCSspecificallyrequiresprospectivetreatmentorthecumulativeeffectofthechangeinpolicy.Insuchinstancesthedepartmentshallrestatetheopeningbalancesofassets,liabilitiesand net assets for the earliest period for which retrospective restatement is practicable.
ChangesinaccountingestimatesareappliedprospectivelyinaccordancewithMCSrequirements.
CorrectionoferrorsisappliedretrospectivelyintheperiodinwhichtheerrorhasoccurredinaccordancewithMCSrequirements,excepttotheextentthatitisimpracticabletodeterminetheperiod-specificeffectsor the cumulative effect of the error. In such cases the department shall restate the opening balances of assets,liabilitiesandnetassetsfortheearliestperiodforwhichretrospectiverestatementispracticable.
Priorperiodcomparativeinformationhasbeenpresentedinthecurrentyear’sfinancialstatements.Wherenecessaryfiguresincludedinthepriorperiodfinancialstatementshavebeenreclassifiedtoensurethattheformatinwhichtheinformationispresentedisconsistentwiththeformatofthecurrentyear’sfinancialstatements.
19 Non-adjusting events after the reporting date
Eventsafterthereportingdatethatareclassifiedasadjustingeventshavebeenaccountedforinthefinancialstatements.Theeventsafterthereportingdatethatareclassifiedasnon-adjustingeventsafterthereportingdatehavebeendisclosedinthenotestothefinancialstatements.
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20 Principal-Agent arrangements
When the department is the principal it will recognise any payment made to the agent in the statement offinancialperformanceunlessitisaprepaymentinwhichcasethepolicyofprepaymentsandadvancesabove will apply.
Anyassetorliabilityassociatedwiththeactivityundertakenbytheagentisincludedinthedisclosurenotestothefinancialstatements.
When the department is the agent it will recognise any fees received as departmental revenue in the statementoffinancialperformance.
The department accounts for the funds provided by the principal to execute the agreed tasks as an advanceinthestatementoffinancialposition.
If the department has not received an advance it will raise a receivable for expenditure spent on behalf of the principal and therefore due by the principal.
Anyassetorliabilityassociatedwiththeactivityundertakenbythemshouldbeincludedinthestatementoffinancialpositionandinthenotestothefinancialstatements.
21 Recoverable revenue
Amountsarerecognisedasrecoverablerevenuewhenapaymentmadeinapreviousfinancialyearbecomesrecoverablefromadebtorinthecurrentfinancialyear.AmountsareeithertransferredtotheNational/ProvincialRevenueFundwhenrecoveredoraretransferredtothestatementoffinancialperformance when written-off.
22 Related party transactions
Arelatedpartytransactionisatransferofresources,servicesorobligationsbetweenthereportingentityandarelatedparty.RelatedpartytransactionswithintheMinister/MEC’sportfolioarerecordedinthenotestothefinancialstatementswhenthetransactionisnotatarm’slength.
23 Key management personnel
Keymanagementpersonnelarethosepersonshavingtheauthorityandresponsibilityforplanning,directing and controlling the activities of the department. The number of individuals and their full compensationisrecordedinthenotestothefinancialstatements.
24 Inventories
Inventoriesthatqualifyforrecognitionmustbeinitiallyreflectedatcostintheannexuretothefinancialstatements.Whereinventoriesareacquiredatnocost,orfornominalconsideration,theircostshallbetheirfairvalueatthedateofacquisition.Inventoriesaresubsequentlymeasuredatthelowerofcostandnet realisable value of lower of cost and current replacement value.
Allinventoryitemsatyear-endarereflectedusingtheFIFOcostformula.
25 Employeebenefits
ThevalueofeachmajorclassofemployeebenefitobligationisdisclosedintheEmployeebenefitsnote.
26 Financialassets(notcoveredelsewhere)
Afinancialassetisrecognisedinitiallyatitscostplustransactioncoststhataredirectlyattributabletotheacquisitionorissueofthefinancial.
Atthereportingdate,adepartmentshallmeasureitsfinancialassetsatcost,lessamountsalreadysettledorwritten-off,exceptforrecognisedloansandreceivables,whicharemeasuredatcostplusaccruedinterest,whereinterestischarged,lessamountsalreadysettledorwritten-off.
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27 Public-Private Partnerships
Public Private Partnerships are accounted for based on the nature and or the substance of the partnership. The transaction is accounted for in accordance with the relevant accounting policies.
AsummaryofthesignificanttermsofthePPPagreement,thepartiestotheagreement,andthedateofcommencementthereoftogetherwiththedescriptionandnatureoftheconcessionfeesreceived,theunitaryfeespaid,rightsandobligationsofthedepartmentarerecordedinthenotestothefinancialstatements.
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5.2.7. Notes to the Annual Financial Statements1. Annual Appropriation 1.1 Annual Appropriation
IncludedarefundsappropriatedintermsoftheAppropriationAct(andtheAdjustmentsAppropriationAct)forNationalDepartments(Votedfunds)andProvincialDepartments:
2016/17 2015/16Final
AppropriationActual Funds
ReceivedFunds not
requested/no received
Final Appropriation
Appropriationreceived
R’000 R’000 R ‘000 R’000 R’000Administration 570,112 570,112 - 521,880 521,880Public Works Infrastructure 1,358,922 1,358,922 - 1,276,821 1,276,821
Transport Infrastructure 2,077,878 2,077,878 - 2,002,784 2,002,784
Expanded Public Works Programme 588,947 588,947 - 579,946 579,946
Total 4,595,859 4,595,859 - 4,381,431 4,381,431
1.2 Conditional grants
Note
2016/17 2015/16R’000 R’000
Total grants received 35 1,373,677 1,420,554
ProvincialgrantsincludedinTotalGrantsreceived 1,320,829 1,366,947
(**ItshouldbenotedthattheConditionalgrantsareincludedintheamountspertheFinalAppropriationinNote1.1)
2. Departmental revenue
Note 2016/17 2015/16R’000 R’000
Sales of goods and services other than capital assets 2.1 14,930 16,072Sales of capital assets 2.2 13,231 9,002Transactionsinfinancialassetsandliabilities 2.3 2,545 743Total revenue collected 30,706 25,817Less: Own revenue included in appropriation 13 30,706 25,111Departmental revenue collected - 706
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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2.1 Sales of goods and services other than capital assets
Note 2016/17 2015/162 R’000 R’000
Sales of goods and services produced by the department 14,929 16,033Sales by market establishment 11,952 12,381Other sales 2,977 3,652
Salesofscrap,wasteandotherusedcurrentgoods 1 39Total 14,930 16,072
2.2 Sale of capital assets
Note 2016/17 2015/162 R’000 R’000
Tangible assets 13,231 9,002Machineryandequipment 31 13,231 9,002
Total 13,231 9,002
2.3 Transactionsinfinancialassetsandliabilities
Note 2016/17 2015/162 R’000 R’000
Stalechequeswrittenback 1 1Other Receipts including Recoverable Revenue 2,544 742Total 2,545 743
3. Compensation of employees3.1 Salaries and wages
Note 2016/17 2015/16R’000 R’000
Basic salary 807,571 748,118Performance award 9,829 9,834Service Based 1,988 2,080Compensative/circumstantial 1,491 6,978Periodic payments - 5Other non-pensionable allowances 162,901 154,941Total 983,780 921,956
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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3.2 Social contributions
Note 2016/17 2015/16R’000 R’000
Employer contributionsPension 86,799 81,811Medical 44,384 41,520UIF 187 38Bargaining council 278 266Total 131,648 123,635
Total compensation of employees 1,115,428 1,045,591
Averagenumberofemployees 3,638 3,778
4. Goods and services
Note 2016/17 2015/16R’000 R’000
Administrativefees 199 428Advertising 2,267 5,486Minor assets 4.1 1,680 2,387Bursaries(employees) 2,802 1,917Catering 3,982 5,241Communication 13,961 12,227Computerservices 4.2 29,474 29,734Consultants:Businessandadvisoryservices 137,486 116,012Infrastructure and planning services 51,933 63,009Laboratory services 146 240Legal services 2,270 7,245Contractors 1,053,973 1,087,507Auditcost–external 4.3 9,732 13,276Fleet services 65,695 80,671Inventory 4.4 5,320 36,631Consumables 4.5 11,972 9,441Operating leases 227,768 229,826Property payments 4.6 210,927 199,222Rental and hiring 38,962 43,572Travel and subsistence 4.7 70,932 89,604Venues and facilities 2,576 4,450Training and development 9,751 14,801Other operating expenditure 4.8 8,162 4,695Total 1,961,970 2,057,622
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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4.1 Minor assets
Note 2016/17 2015/164 R’000 R’000
Tangible assets 1,680 2,387Machineryandequipment 1,680 2,387
Total 1,680 2,387
4.2 Computer services
Note 2016/17 2015/164 R’000 R’000
SITAcomputerservices 20,850 24,558External computer service providers 8,624 5,176Total 29,474 29,734
4.3 Audit cost - external
Note 2016/17 2015/164 R’000 R’000
Regularity audits 9,732 13,276Total 9,732 13,276
4.4 Inventory
Note 2016/17 2015/164 R’000 R’000
Clothingmaterialandaccessories 1,981 4,824Materials and supplies 3,339 31,807Total 5,320 36,631
4.5 Consumables
Note 2016/17 2015/164 R’000 R’000
Consumablesupplies 7,168 3.917Household supplies 1,205 1,756Other consumables 5,963 2,161
Stationery,printingandofficesupplies 4,804 5,524Total 11,972 9,441
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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4.6 Property payments
Note 2016/17 2015/164 R’000 R’000
Municipal services 77,314 75,417Property management fees 93,646 78,278Property maintenance and repairs 39,967 45,527Total 210,927 199,222
4.7 Travel and subsistence
Note 2016/17 2015/164 R’000 R’000
Local 70,932 89,604Total 70,932 89,604
4.8 Other operating expenditure
Note 2016/17 2015/164 R’000 R’000
Professionalbodies,membershipandsubscriptionfees 321 177Resettlement costs 1,297 1,177Other 6,544 3,341Total 8,162 4,695
5. Interest and Rent on Land
Note 2016/17 2015/16R’000 R’000
Interest paid 1,477 4,649Total 1,477 4,649
6. Paymentsforfinancialassets
Note 2016/17 2015/166.1 R’000 R’000
Debts written off 1,970 811Total 1,970 811
6.1 Debts written off
Note 2016/17 2015/166. R’000 R’000
Other debt written off 1,970 811Total debt written off 1,970 811
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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7. Transfers and subsidies
Note 2016/17 2015/16R’000 R’000
Provinces and municipalities Annex 1A 286,429 231,369Households Annex 1G 34,439 29,479Total 320,868 260,848
8. Expenditure for capital assets
Note 2016/17 2015/16R’000 R’000
Tangible assets 1,171,016 978,562Buildingsandotherfixedstructures 33 1,138,428 940,890Machineryandequipment 31 32,588 37,672
Total 1,171,016 978,562
8.1 Analysis of funds utilised to acquire capital assets – 2016/17
Voted funds TotalR’000 R’000
Tangible assets 1,171,016 1,171,016Buildingsandotherfixedstructures 1,138,428 1,138,428Machineryandequipment 32,588 32,588
Total 1,171,016 1,171,016
8.2 Analysis of funds utilised to acquire capital assets – 2015/16
Voted funds TotalR’000 R’000
Tangible assets 978,562 978,562Buildingsandotherfixedstructures 940,890 940,890Machineryandequipment 37,672 37,672
Total 978,562 978,562
8.3 Finance lease expenditure included in expenditure for capital assets
Note 2016/17 2015/16R’000 R’000
Tangible assetsMachineryandequipment 17,187 20,876
Total 17,187 20,876
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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9. Cash and cash equivalents
Note 2016/17 2015/16
R’000 R’000
ConsolidatedPaymasterGeneralAccount 17,403 21,456
Total 17,403 21,456
10 Prepayments and Advances
Note 2016/17 2015/16R’000 R’000
Advancespaid 10.1 6,783 9,002Total 6,783 9,002
10.1 Advances paid
Note 2016/17 2015/1610, Annex 8A R’000 R’000
Public entities 6,783 9,002Total 6,783 9,002
11. Receivables
2016/17 2015/16R’000 R’000 R’000 R’000 R’000 R’000
Note Current Non-Current Total Current Non-
Current Total
Claimsrecoverable 11.1 9,948 419 10,367 3,585 251 3,836Recoverable expenditure 11.2 430 - 430 1,038 - 1,038
Staff debt 11.3 1,415 2,327 3,742 1,132 4,428 5,560Other debtors 11.4 35,764 - 35,764 33,517 - 33,517Total 47,557 2,746 50,303 39,272 4,679 43,951
11.1 Claims recoverable
Note 2016/17 2015/1611
Annex 4R’000 R’000
Nationaldepartments 2,280 3,511Provincial departments 8,087 325Total 10,367 3,836
11.2 Recoverableexpenditure(disallowanceaccounts)
Note 2016/17 2015/1611 R’000 R’000
Salary recoverable expenditure 430 1,038Total 430 1,038
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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11.3 Staff debt
Note 2016/17 2015/1611 R’000 R’000
Staff Debtors 3,742 5,560Total 3,742 5,560
11.4 Other debtors
Note 2016/17 2015/1611 R’000 R’000
Salary control accounts 263 311IDTSavingsClub–EPWPContractors 35,501 33,206Total 35,764 33,517
12. Voted funds to be surrendered to the Revenue Fund
Note 2016/17 2015/16R’000 R’000
Opening balance 33,348 243,493Transfer from statement of financial performance (asrestated) 23,130 33,348
Votedfundsnotrequested/notreceived 1.1 - -Paid during the year (33,348) (243,493)Closing balance 23,130 33,348
13. Departmental revenue and NRF receipts to be surrendered to the Revenue Fund
Note 2016/17 2015/16R’000 R’000
Opening balance 2,255 5,869Transfer from Statement of Financial Performance - 706Own revenue included in appropriation 30,706 25,111Paid during the year (31,606) (29,431)Closing balance 1,355 2,255
14. Payables – current
Note 2016/17 2015/16R’000 R’000
Advancesreceived 14.1 12,566 4,942Clearingaccounts 14.2 289 1Other payables 14.3 37,149 33,863Total 50,004 38,806
14.1 Advances received
Note 2016/17 2015/16R’000 R’000
Nationaldepartments Annex 8B 11,031 2,507Provincial departments Annex 8B 1,535 2,435Total 12,566 4,942
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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14.2 Clearing accounts
Note 2016/17 2015/16R’000 R’000
ClearingAccounts 289 1Total 289 1
14.3 Other payables
Note 2016/17 2015/16R’000 R’000
Payables to other private enterprises 35,501 33,206SalaryControlAccounts 1,648 657Total 37,149 33,863
15. Netcashflowavailablefromoperatingactivities
Note 2016/17 2015/16R’000 R’000
NetsurplusasperStatementofFinancialPerformance 23,130 34,054Addbacknoncash/cashmovementsnotdeemedoperating activities 1,130,602 760,536
(Increase)/decreaseinreceivables–current (6,352) 5,007Increase in prepayments and advances 2,219 31,759Increase in payables – current 11,198 2,023Proceeds from sale of capital assets 2.2 (13,231) (9,002)Expenditure on capital assets 1,171,016 978,562Surrenders to Revenue Fund (64,954) (272,924)Own revenue included in appropriation 2 30,706 25,111
Netcashflowgeneratedbyoperatingactivities 1,153,732 794,590
16. Reconciliationofcashandcashequivalentsforcashflowpurposes
Note 2016/17 2015/16R’000 R’000
ConsolidatedPaymasterGeneralaccount 17,403 21,456Total 17,403 21,456
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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17. Contingent liabilities and contingent assets17.1 Contingent liabilities
Note 2016/17 2015/16R’000 R’000
Liable to NatureHousing loan guarantees Employees Annex 3A 66 66Claimsagainstthedepartment Annex 3B 336,942 316,291Intergovernmentalpayables(unconfirmedbalances) Annex 5 1,535 4,942
Other Annex 3B 43,944 21,587Total 382,487 342,886
Other consists of:
DisputedAccounts-GeneralCreditorsofR16000(2015/16:R16000):Thesearesupplieraccountsthat•remain unpaid due to disputes with service providers.
Municipalities-disputedaccountsofR36625000(2015/16R19495000):Includedinthisaccountare•disputed charges on municipal services rendered to client Departments as well as properties whose custodyisyettobeverified.CampingAllowancesofR1474000(2015/16R1474000):Thisbalancerelatestoamountspossiblyowedtoemployeesforcampingallowances.Currentlytheamountisdisputedand has been disclosed as contingent.
Pendinginvestigations–ASIDIpayments:Thisamountrelatestopaymentsunderinvestigation,•amountingtoR5281000(2015/16Nil).
EPWPHouseholdContractors(SouthAfricanPostOffice)unclaimedvouchersofR548000(2015/16•R602000).ThisamountrelatestothevoucherswhichtheEPWPemployeeshavenot/collected.IntermsoftheagreementwithSAPOthemoniesforexpiredvouchersshouldbetransferredintotheaccountofthebeneficiary,howeverthisdoesnottakeplaceasthemoneynotcollectedisutilisedforthenextmonth’spayments and so forth. Therefore there is a possibility that the EPWP employee may collect the amount at some date in the future from DRPW.
There is a possibility that the Department may need to make transfers to various municipalities which relates to amounts for rates charged by municipalities on properties built on unsurveyed rural land. The amount of the possible obligation for unsurveyed land and disputed accounts cannot be measured with sufficient reliability and therefore the amount has not been included in the contingent liability balance.
17.2 Contingent assets
Note 2016/17 2015/16R’000 R’000
Nature of contingent assetOSD 15,292 14,2972nd & 3rdNotches 337 337
Total 15,629 14,634
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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OSD -These are amounts to be recovered from employees who were overpaid in current and prior years.
Interest is not charged on amounts due from employees who are still in service. For ex-employees interest is only charged after notification of the amount due and payable.
Payment of back pay - 2nd & 3rd Notch overpayments to be recovered:
The overpayment was finalised and formally accepted by the Department therefore the balance these debts are reflected in the staff debt register. There are however still 3 cases which are being disputed which are reflected here as contingent. These are currently being resolved with internal legal counsel and HR.
18. Commitments
Note 2016/17 2015/16
R’000 R’000
Current expenditure
Approvedandcontracted 1,154,840 1,212,522
Approvedbutnotyetcontracted 36,730 11,633
1,191,570 1,224,155
Capital expenditure
Approvedandcontracted 1,330,865 1,961,408
Approvedbutnotyetcontracted 178,164 64,386
1,509,029 2,025,794
Total Commitments 2,700,599 3,249,949
Due to the nature of capital projects in the Department, the majority of capital projects are multi-year commitments.
19. Accruals and payables not recognised19.1 Accruals
2016/17 2015/16R’000 R’000
Listed by economic classification
30 Days 30+ Days Total Total
Goodsandservices 477,739 - 477,739 169,152Capitalassets 7,063 7,063 2,260Other 1,850 71,191 73,041 52,313Total 486,652 71,191 557,843 223,725
Note 2016/17 2015/16R’000 R’000
Listed by programme levelAdministration 33,826 18,051Public Works 52,266 14,942Roads Infrastructure 358,054 96,474CommunityBasedPublicWorksProgram 113,697 94,258Total 557,843 223,725
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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19.2 Payables not recognised
2016/17 2015/16R’000 R’000
Listedbyeconomicclassification30 Days 30+ Days Total Total
Goodsandservices 66,594 11,659 78,253 143,507Capitalassets 3,685 3,685 3,000Other 201 1,001 1,202 -Total 70,480 12,660 83,140 146,507
Note 2016/17 2015/16R’000 R’000
Listed by programme levelAdministration 24,638 15,018Public Works 26,566 27,829Roads Infrastructure 30,552 99,250CommunityBasedPublicWorksProgram 1,384 4,410Total 83,140 146,507
20. Employeebenefits
Note 2016/17 2015/16
R’000 R’000Leave entitlement 52,252 47,540Servicebonus(Thirteenthcheque) 28,829 27,689Performance awards 17,668 15,693Cappedleavecommitments 120,718 128,279Other 3,140 2,078Total 222,607 221,279
ThevalueofnegativeleaveentitlementwasR595000and478days(2015/16R750000and739days).
Thevalueofnegativecapped leavecommitmentwasR389000and503days (2015/16R576000and820days).
ThePerformanceAwardsprovisionhasbeencalculatedat1.5%oftheCoEbudget,thisisanallowedalternativepertheNationalTreasuryreportingguidelines.
OtherrelatestoLongServiceAwards.
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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21. Lease commitments21.1 Operating leases commitment
2016/17Buildings and other
fixedstructuresR‘000
TotalR‘000
Notlaterthan1year 116,497 116,497Later than 1 year and not later than 5 years 214,642 214,642Total lease commitments 331,139 331,139
2015/16Buildings and other
fixedstructuresR’000
TotalR’000
Notlaterthan1year 107,099 107,099Later than 1 year and not later than 5 years 234,826 234,826Total lease commitments 341,925 341,925
Operating leases consist of various lease agreements for premises leased for its own use and by other Government institutions.
21.2 Finance leases commitment
2016/17Machinery and
equipmentR‘000
TotalR‘000
Notlaterthan1year 10,413 10,413Later than 1 year and not later than 5 years 11,779 11,779Total lease commitments 22,192 22,192
2015/16Machinery and
equipmentR‘000
TotalR‘000
Notlaterthan1year 15,205 15,205Later than 1 year and not later than 5 years 10,307 10,307Total lease commitments 25,512 25,512
Finance leases consists of the leasing of cell phones, photocopiers and fleet vehicles.
22. Accrued departmental revenue
Note 2016/17 2015/16R’000 R’000
Sales of goods and services other than capital assets 43,168 28,471Sales of capital assets 2,109 2,109Other 14,916 15,339Total 22.1 60,193 45,919
Othercomprisesof:ASIDIManagementfee,supplieroverpaymentsandIDTRoadsinterestofRnil(2015/16R1790000)Management feepaid toASIDI (AcceleratedSchools InfrastructureDelivery Initiative)with theDepartmentofBasicEducation–R3,961,000(2015/16R3286000).Supplieroverpaid–R10,898,000(2015/16R10262000).RevenueshortfallonsaleofcapitalassetsR6,000(2015/16Nil)andIrregularExpenditureandFruitlessandWastefulExpendituretoberecoveredofR51,000(2015/16Nil).
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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22.1 Analysis of accrued departmental revenue
Note 2016/17 2015/1622 R’000 R’000
Opening balance 45,919 29,046Less: amounts received 13,709 12,365Add:amountsrecognised 27,983 29,238Less:Amountswritten-off/reversedasirrecoverable - -Closing balance 60,193 45,919
22.2 Impairment of accrued departmental revenue
Note 2016/17 2015/16R’000 R’000
Estimate of impairment of accrued departmental revenue 38,126 23,860Total 38,126 23,860
23. Irregular expenditure23.1 Reconciliation of irregular expenditure
Note 2016/17 2015/16R’000 R’000
Opening balance 3,102,419 3,195,656Prior period error - -Asrestated 3,102,419 3,195,656Add:Irregularexpenditure–relatingtoprioryear - (17,410)Add:Irregularexpenditure–relatingtocurrentyear 23.2 341,122 659,579Less:Amountscondoned 23.3 (1,802,734) (735,406)Closing balance 1,640,807 3,102,419
Analysis of awaiting condonation per age classificationCurrentyear 23.2 341,122 659,579Prior years 1,299,685 2,442,840Total 1,640,807 3,102,419
23.2 Details of irregular expenditure – current year
Incidents Disciplinary steps taken/criminal proceedings2016/17
R’000GoodsandServices Under investigation 208,445Capital Under investigation 13,629ConsultancyFees Under investigation 59,336LeaseAgreements Under investigation 59,675CompensationofEmployee Under investigation 37 Total 341,122
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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23.3 Details of irregular expenditure condoned
Incident Condonedby(condoningauthority) 2016/17R’000
GoodsandServices NationalTreasury 255,390Capital NationalTreasury 488,230Consultants NationalTreasury 40,882Operating leases NationalTreasury 1,018,232Total 1,802,734
24. Fruitless and wasteful expenditure24.1 Reconciliation of fruitless and wasteful expenditure
Note 2016/17 2015/16R’000 R’000
Opening balance 9,196 3,573Fruitless and wasteful expenditure – relating to current year 24.3 1,605 5,623
Less:Amountsresolved (222) -Fruitless and wasteful expenditure awaiting resolution 24.2 10,579 9,196
24.2 Analysisofawaitingresolutionpereconomicclassification
Note 2016/17 2015/16R’000 R’000
Current 24 10,579 9,196Total 10,579 9,196
24.3 Analysis of current year’s fruitless and wasteful expenditure
Incident Disciplinary steps taken/criminal proceedings 2016/17R’000
Generalincidents Under Investigation 85Interest Under Investigation 1,477Litigations Under Investigation 43Total 1,605
25. Related party transactions
In kind goods and services provided/received
The Departments below occupy buildings owned or leased by this Department without paying for this service:
EasternCapeDepartmentsofEconomicDevelopment&EnvironmentAffairs;•EasternCapeDepartmentsofEducation;•EasternCapeDepartmentsofHealth;•EasternCapeDepartmentsofHumanSettlements;•EasternCapeDepartmentsofLocalGovernment&TraditionalAffairs;•EasternCapeDepartmentsofRuralDevelopment&AgrarianReform;•EasternCapeDepartmentsofSafety&Liaison;•EasternCapeDepartmentsofSocialDevelopment;•EasternCapeDepartmentsofSportRecreationArts&Culture;•EasternCapeDepartmentsofTransport;•EasternCapeOfficeofthePremier;and•EasternCapeProvincialPlanning&Treasury.•
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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Therearemembersofkeymanagementthatarereflectedasdirectors/membersinCompanies/CloseCorporationsinCIPChowevernotransactionstookplacebetweentheseentitiesandtheDepartment.
26. Key management personnel
No. of Individuals 2016/17 2015/16
R’000 R’000Politicalofficebearers 1 1,902 1,902Officials: -
Level 15 to 16 4 6,091 4,617Level14(incl.regionaldirectorsifatalowerlevel) 17 16,568 14,337
Family members of key management personnel - 119Total 24,561 20,975
KeymanagementincludesRegionalSeniorManagersatlevel13.Numberofindividualsrefersto2016/2017only.Forprioryear,referto2015/2016financialstatements.
27. Public Private PartnershipThePPPiscurrentlyregisteredintermsofNationalTreasuryhoweverthePPPwasreactivatedinAugust2015.DuringtheperiodunderreviewNationalTreasurygrantedapprovalIIofthePPP.TransactionadvisorshavebeenappointedfortheProjectInitiationandManagementoftheBhishoPrecintProject.Constructionontheprecinctisexpectedtocommenceduringthe2017/18financialyear.
28. Impairment
Note 2016/17 2015/16R’000 R’000
Staff Debtors 2,571 4,623Interdepartmental receivables 311 99Total 2,882 4,722
29. Provisions
Note 2016/17 2015/16R’000 R’000
Balances under investigation 46,255 39,992Interest accrued but not paid 4,990 3,335Total 51,245 43,327
Provisions - Municipal Finance: Balances under investigation as well as interest accrued but not paid at year endareclassifiedasProvisions.TheseareamountsbilledbyMunicipalitiesagainstpropertiesownedbytheDepartment but there is uncertainty either on the timing/amount thereof.
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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29.1 Reconciliation of movement in provisions – 2016/17
Balances under
investigation
Interest accrued but
not paidTotal
R’000 R’000 R’000Opening balance 39,992 3,335 43,327Increase in provision 6,263 1,655 7,918Closingbalance 46,255 4,990 51,245
Reconciliation of movement in provisions – 2015/16
Balances under
investigation
Interest accrued but
not paid
Total
R’000 R’000 R’000Opening balance 17,924 3,309 21,233Increase in provision 22,068 26 22,094Closingbalance 39,992 3,335 43,327
These are amounts billed by Municipalities against properties owned by the Department but there is uncertainty either on the timing/amount thereof.
30. Non-adjusting events after reporting date
Transfer of roads functionOn the 23rdofMay2017thePremieroftheEasternCapeProvincesignedaproclamationtransferringtheroadsfunctionfromtheDepartmentofRoadsandPublicWorkstotheDepartmentofTransportwitheffectfrom1April2018.AtthedateofpreparingthesefinancialstatementstheDepartmentwasunabletomakeanestimateoftheexactfinancialeffectsasanexercisestillneedstobeundertakentodeterminethis.
31. Movable Tangible Capital Assets
MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017
Opening balance
Value adjustments Additions Disposals Closing
BalanceR’000 R’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT 453,143 925 19,015 13,005 460,078Transport assets 142,345 374 - 5,644 137,075Computerequipment 27,601 (38) 17,688 747 44,504Furnitureandofficeequipment 24,772 (35) 557 223 25,071Othermachineryandequipment 258,425 624 770 6,391 253,428
TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 453,143 925 19,015 13,005 460,078
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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Movable tangible capital assets under investigationIncluded in the above total of the movable tangible capital assets per the asset register are assets that are under investigationwhichhavenotbeenverifiedasat31May2017:
Number ValueR’000
Total 709 11,141Machineryandequipment 709 11,141
Theabove709assets(valueR11141000)werenotlocatedduringthe2017annualphysicalverification(2015/16:247assetsofR3,888,255.Thesehavenotbeenlocatedforthepast2physicalverificationsarebeingconsideredfor write off.
31.1 Additions
ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017
Cash Non-cash
(CapitalWork in
Progress current
costs and finance
lease payments)
Received current, not
paid(Paid
current year, received
prioryear) TotalR’000 R’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT 32,588 - (17,187) 3,614 19,015Transport assets 8,087 - (8,087) - -Computerequipment 14,088 - - 3,600 17,688Furnitureandofficeequipment 543 - - 14 557Othermachineryandequipment 9,870 - (9,100) - 770
TOTAL ADDITIONS TO MOVABLE 32,588 - (17,187) 3,614 19,015
31.2 Disposals
DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017
Sold for cash
Non-cash disposal
Total disposals
Cash Received
ActualR’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT 11,582 1,423 13,005 13,231Transport assets 5,644 - 5,644 1,874Computerequipment 49 698 747 -Furnitureandofficeequipment 12 211 223 -Othermachineryandequipment 5,877 514 6,391 11,357TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS 11,582 1,423 13,005 13,231
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
215
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
31.3 Movement for 2015/16
MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016
Opening balance
Prior period error Additions Disposals
Closing Balance
R’000 R’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT 458,282 - 18,071 23,210 453,143Transport assets 145,123 - 7,104 9,882 142,345Computerequipment 22,772 - 5,790 961 27,601Furnitureandofficeequipment 21,766 - 3,622 616 24,772Othermachineryandequipment 268,621 - 1,555 11,751 258,425
TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 458,282 - 18,071 23,210 453,143
31.4 Minor assets
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AT 31 MARCH 2017Machinery
and equipment Total
R’000 R’000Opening balance 33,721 33,721Valueadjustments (1,869) (1,869)Additions 1,821 1,821Disposals 850 850TOTAL MINOR ASSETS 32,823 32,823
NumberofR1minorassets 9,118 9,118Numberofminorassets 20,245 20,245TOTAL NUMBER OF MINOR ASSETS 29,363 29,363
Included in additions forminor assets isAccruals ofR141 000 and cash additions for the year amounting R1 680 000. Onminorassets4491(valueR4270000)assetswerenotlocatedduringthe2017annualphysicalverification.1890 (valueR1903000) of thesehavenot been located in thepast 2physical verificationsandarebeingconsidered for write off.
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
216
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AT 31 MARCH 2016Machinery
and equipment Total
R’000 R’000Opening balance 33,383 33,383Prior period error - -Additions 2,440 2,440Disposals 2,102 2,102TOTAL MINOR ASSETS 33,721 33,721
NumberofR1minorassets 11,538 11,538Numberofminorassetsat 22,286 22,286TOTAL NUMBER OF MINOR ASSETS 33,824 33,824
31.5 Movable Capital Assets Written off
MOVABLE CAPITAL ASSETS WRITTEN OFF – 31 MARCH 2017Machinery
and equipment Total
R’000 R’000Assetswrittenoff 466 466TOTAL ASSETS 466 466
31.6 S42 Movable Capital Assets
ASSETS SUBJECT TO TRANSFER IN TERMS OF S42 OF THE PFMA – 31 MARCH 2017
No. of Assets
Machinery and
equipment TotalR’000 R’000
MajorAssets 5 (79) (79)MinorAssets 172 (18) (18)TOTAL ASSETS (97) (97)
ASSETS SUBJECT TO TRANSFER IN TERMS OF S42 OF THE PFMA – 31 MARCH 2016Machinery
and equipment
Total
R’000 R’000MajorAssets 494 494MinorAssets 1,595 1,595TOTAL ASSETS 2,089 2,089
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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32 Intangible Capital Assets
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017
Opening balance
Value adjustments Additions Disposals
Closing Balance
R’000 R’000 R’000 R’000 R’000Software 3,005 - 1,357 1 4,362TOTAL INTANGIBLE CAPITAL ASSETS 3,005 - 1,357 - 4,362
Additions
ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017
Cash Non-cash
(Developmentwork-in-
progress current costs)
Received current, not paid(Paid
current year, received prior
year TotalR’000 R’000 R’000 R’000 R’000
SOFTWARE - - - 1,357 1,357
TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS
- - - 1,357 1,357
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016
Opening balance
Value adjustments
Additions DisposalsClosing Balance
R’000 R’000 R’000 R’000 R’000Software 3,005 3,005TOTAL INTANGIBLE CAPITAL ASSETS 3,005 3,005
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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33. Immovable Tangible Capital Assets
MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017
Opening balance
Value adjustments Additions Disposals
Closing Balance
R’000 R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED STRUCTURES 828,680 - 6,192,822 - 7,021,502
Dwellings 18,062 - 336,829 - 354,891Non-residentialbuildings 809,175 - 5,620,420 - 6,429,595Otherfixedstructures 1,443 - 235,573 - 237,016
HERITAGE ASSETS - - 10,141 - 10,141 Heritage assets - - 10,141 - 10,141
LAND AND SUBSOIL ASSETS 64 - 436,774 - 436,838 Land 64 - 436,774 - 436,838
CapitalWork-in-Progress(effective1April2016) - 289,861 201,372 (134,193) 357,040
TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS 828,744 289,861 6,841,109 (134,193) 7,825,521
33.1 Additions
ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017
Cash Non-cash
(CapitalWork in
Progress current costs)
Received current, not
paid(Paid
current year, received
prioryear) TotalR’000 R’000 R’000 R’000 R’000
BUILDING AND OTHER FIXED STRUCTURES 1,138,428 6,192,822 (1,138,428) - 6,192,822
Dwellings - 336,829 - - 336,829Non-residentialbuildings 201,372 5,620,420 (201,372) - 5,620,420Otherfixedstructures 937,056 235,573 (937,056) - 235,573
HERITAGE ASSETS - 10,141 - - 10,141 Heritage assets - 10,141 - - 10,141
LAND AND SUBSOIL ASSETS - 436,774 - - 436,774
Land - 436,774 - - 436,774TOTAL ADDITIONS TO IMMOVABLE 1,138,428 6,639,737 (1,138,428) 6,639,737
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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33.2 Disposal
DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017
Sold For Cash
DisposalsNon-cashDisposals
Total disposals
Cash received
ActualR’000 R’000 R’000 R’000
BUILDING AND OTHER FIXED STRUCTURES - - - -Non-residentialbuildings - - - -
LAND AND SUBSOIL ASSETS - - - -Land - - - -
TOTAL DISPOSAL OF IMMOVABLE - - - -
33.3 Movement for 2015/16
MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016
Opening balance
Prior period error Additions Disposals
Closing balance
R’000 R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED STRUCTURES
595,388 - 234,086 794 828,680
Dwellings 12,365 6,491 794 18,062Non-residentialbuildings 581,580 227,595 - 809,175Otherfixedstructures 1,443 - - 1,443
LAND AND SUBSOIL ASSETS 64 - - - 64Land 64 - - 64
TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS 595,452 - 234,086 794 828,744
33.4 Immovable assets valued at R1
IMMOVABLE ASSETS VALUED AT R1 IN THE ASSET REGISTER AS AT 31 MARCH 2016Buildings and other
fixedstructures
Heritage assets
Land and subsoil assets Total
R R R R
R1 Immovable assets 2,702 92 800 3,594TOTAL 2,702 92 800 3,594
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
220
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
33.5 S42 Immovable assets
Assets subjected to transfer in terms of S42 of the PFMA – 2016/17
Number of assets
Value of assetsR’000
BUILDINGS AND OTHER FIXED STRUCTURES 10 6,428Dwellings 10 6,428
LAND AND SUBSOIL ASSETS 421 91,909Land 421 91,909
TOTAL 431 98,337
Assets subjected to transfer in terms of S42 of the PFMA – 2015/16
Number of assets
BUILDINGS AND OTHER FIXED STRUCTURES 54Dwellings 51Non-residentialbuildings 3
LAND AND SUBSOIL ASSETSLand -
TOTAL 54
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
221
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33.6 Immovable assets additional information
2016/17 2015/16Note
Unsurveyed landa) Estimated completion date 10 – 12 years
Annexure 9 Area Area
See explanatory notes
Properties deemed vestedb) Annexure 9 Number NumberLand parcels 4,654 4,535FacilitiesSchools 2,676 2,584Clinics 286 260Hospitals 77 81Officebuildings 95 97Dwellings 522 445Storage facilities 13 14Other 985 1,054
Facilities on unsurveyed c)land
Duration of use Annexure 9 Number Number
Schools 1,148 1,216Clinics 196 208Hospitals 4 4Officebuildings 17 16Dwellings 9 11Storage facilities 4 6Other 48 50
Facilities on right to use d)land
Duration of use Annexure 9 Number Number
Schools 510 463Clinics 138 98Hospitals 30 22Officebuildings 45 42Dwellings 178 173Storage facilities 6 6Other 149 138Agreement of e)custodianship
Annexure 9 Number Number
Land parcels - -Other - -
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
1. Unsurveyed land - Area of unsurveyed land cannot be determined as the land has not been surveyed in order to have an area (extent) calculated. The only known variable is the number of properties to be surveyed.
The estimated time of completion of the process of surveying is managed by the Office of the Surveyor General (SG). The Province pro-actively appoint land surveyors to survey provincial state domestic functions (e.g. schools, colleges, etc.). The approval of the diagrams resides with the SG Office. Due to survey challenges (e.g. old order rights) of underlying land in the former homelands, the survey process in areas of underlying quitrents cannot be implemented.
34. Agent-principal arrangements34.1 Department acting as the principal
2016/17 2015/16R’000 R’000
Fees PaidSouthAfricanPostOffice(SAPO):EPWPHouseholdContractors 19,330 17,309CoegaDevelopmentCorporation(CDC) - 1,070IndependentDevelopmentTrust(IDT):Roads 531 3,310Tsolwana Local Municipality - 805Total 19,861 22,494
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
223
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Nature of the activities:a)
The Department uses CDC, IDT: Roads and SANRAL as implementing agents for:
a) Facilitation of the delivery of infrastructure through the provision of expertise and specialist competencies; and
b) Provision of contract development programmes and providing support and guidance to emerging contractors.
The Department uses SAPO as an implementing agent for:
Facilitation of the payment of the EPWP beneficiaries. a)
The Department uses IDT : Savings as an implementing agent for:
Administration of the savings of the EPWP beneficiaries.
The National Department of Public Works is acting as an agent for managing the building low cost bridges on behalf of the Department.
Various municipalities are used as implementing agents to maintain roads on the Department’s behalf. The Municipalities claim monies back from the Department on an invoice basis.
Apart from the expertise provided, the Department has entered into these agreements to ensure that service delivery does take place and to circumvent capacity constraints.
CDC, IDT : Roads and SANRAL - On the date of termination, all amounts not contractually committed or paid out to the Programme from the Agent’s bank account, on demand, be reimbursed to the DRPW, net of normal banking costs and the rights and obligation in terms of any Agreement entered into by the Agent, shall revert to the DRPW.
Resources that are under the custodianship of the agents:
Some of the agents have receivable balances at year end which are detailed in the payables and receivables reconciliation below. The Department owes Household Contractors (HHC’s): Savings R 72 912 000 (2015/16: R 52 182 000) which is disclosed as part of the accruals.
IDT: Savings have a receivable balance of R35 501 000 (2015/16: R33 206 000) as the amount is due to the Department from IDT however there is also a payable balance of R35 501 000 (2015/16: R33 206 000) as the Department is liable to the contract workers for the same amount. This is reflected on the Statement of Financial Position.
34.2 Department acting as the agent
2016/17 2015/16R’000 R’000
Fees ReceivedEasternCapeDepartmentofEducation(IDA) - -NationalDepartmentofBasicEducation(ASIDI) - -Total - -
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
224
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Nature of the activities:a)
The Department is acting as an agent for the National Department of Basic Education (ASIDI) and Eastern Cape Department of Education (IDA) to address the backlogs in the eradication of inappropriate school structures and in the provision of basic services to schools that do not have such services.
The Department also acted as an agent for the Eastern Cape Department of Education in the purchase of a property in Grahamstown.
Apart from the expertise provided, the Department has entered into these agreements to ensure that service delivery does take place and to circumvent capacity constraints.
Beneficiaries:b)
The ultimate beneficiaries of the agreement are SMME’s, consultants and communities. The projects are where possible assisting with job creation in the local communities.
Fees received:c)
In terms of the agreements with the above, the Department charge management fee of 1.5% to Department of Basic Education (ASIDI). The Eastern Cape Department of Education (IDA) does not pay a management fees.
Management fees for ASIDI had not been received at year end and are thus included in the Accrued Departmental Revenue note at, R3 960 000 (2015/16 R 3 287 000).
34.3 Reconciliation of funds and disbursements – 2016/17
Name of principal entity Total funds received
Expenditure incurred
against fundsR’000 R’000
NationalDepartmentofBasicEducation(ASIDI) 54,316 (43,285)EasternCapeDepartmentofEducation(IDA) 690,646 (682,772)Total 744,962 (726,057)
The balance receivable / payable are disclosed as part of the interdepartmental payables and receivable annexures. No other assets belonging to other entities are held in the custody of the department. The schools which are being built during this project are reflected in the work in progress
34.4 Reconciliation of carrying amount of receivables and payables – 2016/17
Name of principal entityOpening balance
Less : Write-offs/
settlements/ waivers
Closing balance
R’000 R’000
IndependentDevelopmentTrust(Roads) 10,792 (4,009) 6,783IndependentDevelopmentTrust(Savings) 33,206 2,295 35,501NationalDepartmentofPublicWorks 246 - 246SAPostOffice 6,214 (616) 5,598ECDepartmentofEducation 100 7,774 7,874SANRAL 8,700 17,920 26,620
Total 59,258 23,364 82,622
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
225
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Name of principal entityOpening balance
Expenses incurred on
behalf of principal
Closing balance
R’000 R’000
NationalDepartmentofBasicEducation(ASIDI) (1,723) (9,308) (11,031)ECDepartmentofEducation(Properties) (2,435) 900 (1,535)
Total (4,158) (8,408) (12,566)
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
226
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
35.
STAT
EMEN
T O
F C
ON
DIT
ION
AL
GR
AN
TS R
ECEI
VED
GR
AN
T A
LLO
CAT
ION
SPEN
T20
15/1
6
Nam
e of
Gra
nt
Div
isio
n of
R
even
ue
Act
/ Pr
ovin
cial
G
rant
sR
’000
Rol
l Ove
rsR
’000
DO
RA
Adj
ust-
men
tsR
’000
Oth
er A
d-ju
stm
ents
R’0
00
Tota
l Av
aila
ble
R’0
00
A
mou
nt
rece
ived
by
dep
art-
men
tR
’000
Am
ount
sp
ent b
y de
part
-m
ent
R’0
00
Und
er
/(over
-spending
)R
’000
% o
f av
aila
ble
fund
s sp
ent b
y D
ept
R’0
00
Div
isio
n of
R
even
ue
Act
R’0
00
Am
ount
sp
ent b
y de
part
-m
ent
R’0
00
PRMGTransport/EP
WP
1,279,725
--
41,104
1,320,829
1,320,829
1,306,082
14,747
99%
1,366,947
1,366,913
EPWPIncentiveGrant
52,848
--
-52,848
52,848
52,848
-100%
53,607
53,606
1,33
2,57
3-
-41
,104
1,37
3,67
71,
373,
677
1,35
8,93
014
,747
1,42
0,55
41,
420,
519
TheDepartmentcertifiesthatalltransferintermsoftheDivisionoftheRevenueActweredepositedintotheprimarybankaccountoftheProvince.
Theunderexpenditureisduetothelateawardingofdisasterprojects(DR08121,DR08120,DR08116,DR08245,DR08119,DR08100)re-advertised(D
R08017andDR08079)
duetonon-re
sponsivenessofbidderstotheconditionsofthetenderaswellasthedelaysincom
pletionofawardedproject(DR08125)duetocom
munityproteststhatresulted
instoppageofwork.A
nam
ountofR
14,071millionhasbeenrequestedtoberolledover.
36.
Cha
nges
in e
stim
ate
Valu
e de
rived
usi
ng th
e or
igin
al e
stim
ate R
Valu
e de
rived
usi
ng th
e am
ende
d es
timat
e R
R-v
alue
impa
ct o
f cha
nge
in e
stim
ate R
ImmovableAssets
3,594
5,906,857,872
5,906,854,278
The
MC
S re
quire
s th
at R
1 as
sets
be
re-m
easu
red
at fa
ir va
lue.
Thi
s ha
s be
en d
one
usin
g th
e M
CS
and
SectoralG
uide:AccountingandReportingforImmovableAssets.
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
227
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
37.
Prio
r per
iod
erro
rs
Cor
rect
ion
of p
rior p
erio
d er
rors
20
15/1
620
15/1
620
15/1
6R
’000
R’0
00R
’000
Com
mitm
ents
Prev
ious
ly D
iscl
osed
Am
ende
d D
iscl
osur
eN
et E
ffect
Cur
rent
exp
endi
ture
1,05
5,90
0 1,
224,
155
168,
255
App
rove
d an
d co
ntra
cted
1,011,680
1,212,522
200,842
App
rove
d bu
t not
yet
con
tract
ed44,220
11,633
(32,587)
Cap
ital E
xpen
ditu
re2,
219,
569
2,02
5,79
4 (193,775)
App
rove
d an
d co
ntra
cted
2,140,278
1,961,408
(178,870)
App
rove
d bu
t not
yet
con
tract
ed79,291
64,386
(14,905)
3,27
5,46
9 3,
249,
949
(25,520)
Inthecurre
ntyearanerrorintheprioryearcom
mitm
entswasdetected.Theerro
rwascorrectedandtheneteffectoftheadjustmentisreflectedabove.
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
228
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
2015
/16
2015
/16
2015
/16
R’0
00R
’000
R’0
00A
ccru
als
Prev
ious
ly D
iscl
osed
Am
ende
d D
iscl
osur
eN
et E
ffect
Goodsandservices
121,503
169,152
47,649
Capitalassets
179
2,260
2,081
Oth
er
52,313
52,313
- To
tal
173,
995
223,
725
49,7
30
List
ed b
y pr
ogra
mm
e le
vel
Administration
16,851
18,051
1,200
Publ
ic W
orks
13,622
14,942
1,320
Tran
spor
t Inf
rast
ruct
ure
50,590
96,474
45,884
Com
munityBasedPublicW
orksProgram
92,932
94,258
1,326
173,
995
223,
725
49,7
30
Inthecurre
ntyearanerrorintheprioryearaccrualsandpayableswasdetected.Theerro
rwascorrectedandtheneteffectoftheadjustmentisreflectedabove.
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
229
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
2015
/16
2015
/16
2015
/16
R’0
00R
’000
R’0
00Pa
yabl
es n
ot re
cogn
ised
Pre
viou
sly
Dis
clos
ed
Am
ende
d D
iscl
osur
e N
et E
ffect
Goodsandservices
142,875
143,507
632
Capitalassets
3,000
3,000
- To
tal
145,
875
146,
507
632
List
ed b
y pr
ogra
mm
e le
vel
Administration
14,989
15,018
29
Publ
ic W
orks
27,829
27,829
- Tr
ansp
ort I
nfra
stru
ctur
e99,059
99,250
191
Com
munityBasedPublicW
orksProgram
3,998
4,410
412
145,
875
146,
507
632
Inthecurre
ntyearanerrorintheprioryearaccrualsandpayableswasdetected.Theerro
rwascorrectedandtheneteffectoftheadjustmentisreflectedabove.
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
230
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
Irreg
ular
Exp
endi
ture
2015
/16
R‘0
00Pr
evio
usly
Dis
clos
ed
2015
/16
R‘0
00A
men
ded
Dis
clos
ure
2015
/16
R‘0
00 N
et E
ffect
O
peni
ng b
alan
ce
3,195,656
3,195,656
- Add:Irregularexpenditure-relatingtoprioryear
- (17,410)
(17,410)
Add:Irregularexpenditure-relatingtocurrentyear
659,579
659,579
- Less:Currentyearamountscondoned
(735,406)
(735,406)
- C
losi
ng b
alan
ce
3,11
9,82
9 3,
102,
419
(17,410)
Analysisofawaitin
gcond
onationpera
geclassificatio
n659,579
659,579
- Currentyear
2,460,250
2,442,840
(17,410)
Prio
r yea
rs3,
119,
829
3,10
2,41
9 (17,410)
Tota
l
Inthecurre
ntyearanerrorintheprioryearirre
gularexpenditurewasdetected.Theerro
rwascorrectedandtheneteffectoftheadjustmentisreflectedabove.
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
231
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
5.2.
8. A
nnex
ures
to th
e A
nnua
l Fin
anci
al S
tate
men
ts
AN
NEX
UR
E 1G
STAT
EMEN
T O
F TR
AN
SFER
S TO
HO
USE
HO
LDS
HO
USE
HO
LDS
TRA
NSF
ER A
LLO
CAT
ION
EXPE
ND
ITU
RE
2015
/16
Adj
uste
dA
ppro
pria
tion
Act
Rol
l O
vers
Adj
ustm
ents
Tota
l Av
aila
ble
Act
ual
Tran
sfer
% o
f Av
aila
ble
fund
s Tr
ansf
erre
d
App
ropr
iatio
n A
ct
R’0
00R
’000
R’0
00R
’000
R’0
00%
R’0
00Tr
ansf
ers
EmployeeLeaveGratuity
28,300
28,300
28,300
100%
25,089
Bursaries(Non-Employee)
6,069
6,069
6,069
100%
6,121
Claimsagainstthestate
7070
70100%
-
Tota
l34
,439
--
34,4
3934
,439
31,2
10
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
232
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
AN
NEX
UR
E 1K
STAT
EMEN
T O
F A
CTU
AL
MO
NTH
LY E
XPEN
DIT
UR
E PE
R G
RA
NT
GR
AN
T TY
PE
Apr
il20
16M
ay
2016
Jun
2016
Jul
2016
Aug
2016
Sep
2016
Oct
2016
Nov
2016
Dec
2016
Jan
2017
Feb
2017
Mar
2017
Tota
l
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
R’0
00PR
MG
77,618
116,483
147,921
124,872
132,580
125,045
236,123
78,506
141,723
3,600
101,190
20,421
1,306,082
EPW
P-
34,530
18,318
--
--
--
--
-52,848
Tota
l77
,618
151,
013
166,
239
124,
872
132,
580
122,
705
236,
123
78,5
0614
1,72
33,
600
101,
190
20,4
211,
358,
930
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
233
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
AN
NEX
UR
E 3A
STAT
EMEN
T O
F FI
NA
NC
IAL
GU
AR
AN
TEES
ISSU
ED A
S AT
31
MA
RC
H 2
017
– LO
CA
L
GU
AR
AN
TOR
IN
STIT
UTI
ON
Gua
rant
ee in
re
spec
t of
Orig
inal
gu
aran
teed
ca
pita
l am
ount
Ope
ning
ba
lanc
e 1
Apr
il 20
16
Gua
rant
ees
draw
dow
nsdu
ring
the
year
Gua
rant
ees
repa
ymen
ts/
canc
elle
d/
redu
ced/
re
leas
ed
durin
g th
e ye
ar
Rev
alua
tions
Clo
sing
ba
lanc
e31
Mar
ch
2017
Gua
rant
eed
inte
rest
for
year
end
ed
31 M
arch
20
17
Rea
lised
lo
sses
not
re
cove
rabl
e i.e
. cla
ims
paid
out
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
Vario
usH
ousi
ng-
66-
--
66-
-
TOTA
L-
66-
--
66-
-
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
234
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
AN
NEX
UR
E 3B
STAT
EMEN
T O
F C
ON
TIN
GEN
T LI
AB
ILIT
IES
AS
AT 3
1 M
AR
CH
201
7
NAT
UR
E O
F LI
AB
ILIT
Y
Ope
ning
Bal
ance
1 A
pril
2016
Liab
ilitie
s in
curr
ed d
urin
g th
e ye
ar
Liab
ilitie
s pa
id/
canc
elle
d/re
duce
d du
ring
the
year
Liab
ilitie
s re
cove
rabl
e (Providedetails
hereun
der)
C
losi
ngB
alan
ce31
Mar
ch 2
017
R’0
00R
’000
R’0
00R
’000
R’0
00C
laim
s ag
ains
t the
dep
artm
ent
Lega
l Fee
s316,291
45,156
24,505
-336,942
Subt
otal
316,291
45,156
24,505
-336,942
Oth
erCam
pingAllowances
1,474
--
-1,474
SouthAfricanPostO
ffice(S
APO):EPW
PHouseholdContractors
602
-54
-54
8Tr
ansf
er to
Mun
icip
aliti
es:
Dis
pute
d ac
coun
ts19,495
17,130
--
36,625
Dis
pute
d ac
coun
ts –
gen
eral
cre
dito
rs16
--
-16
Pendinginvestigation–AS
IDIpayments
-5,281
--
5,281
Subt
otal
21,587
22,411
54-
43,944
TOTA
L337,878
67,567
24,559
-380,886
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
235
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
AN
NEX
UR
E 4
CLA
IMS
REC
OVE
RA
BLE
GO
VER
NM
ENT
ENTI
TY
Con
firmedbalance
outs
tand
ing
Uncon
firmedbalance
outs
tand
ing
Tota
l
31/0
3/20
1731
/03/
2016
31/0
3/20
1731
/03/
2016
31/0
3/20
1731
/03/
2016
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
Dep
artm
ent
EasternCape-D
epartmentofE
ducation-IDA
7,874
100
7,874
100
EasternCape–DepartmentofE
ducation
41-
41-
Empl
oyee
Hou
sing
Sch
eme
2,033
-2,033
-Ea
sternCape-D
epartmentofH
ealth
-11
1-
111
EasternCape-D
epartmentofH
umanSettlements
264
264
EasternCape-D
epartmentofTransport
-10
-10
GautengEducation
8080
8080
National-DepartmentofM
ineralResources
-3,218
-3,218
National–DepartmentofP
ublicW
orks–Pretoria
246
246
246
246
National-Hum
anSettlements
4747
4747
WesternCape-O
fficeofthePremier
2020
2020
TOTA
L10
,367
3,83
610
,367
3,83
6
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
236
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
ANNEXURE 5
INTER-GOVERNMENT PAYABLES
GOVERNMENT ENTITY
Confirmedbalanceoutstanding
Unconfirmedbalanceoutstanding Total
31/03/2017 31/03/2016 31/03/2017 31/03/2016 31/03/2017 31/03/2016R’000 R’000 R’000 R’000 R’000 R’000
DEPARTMENTSCurrentEasternCape–Departmentof Education - - 1,535 2,435 1,535 2,435
National–DepartmentofEducation–ASIDI 11,031 - - 2,507 11,031 2,507
Total Intergovernmental 11,031 - 1,535 4,942 12,566 4,942
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
237
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
ANNEXURE 6
INVENTORIES
INVENTORYNote Quantity 2016/17 Quantity 2015/16
R’000 R’000
Opening balance - 2,293 3,694Add:Additions/Purchases–Cash 5,320 36,631Add:Additions-Non-cash 16 312(Less):Issues (6,813) (38,344)Closing balance 816 2,293
The Department is unable to provide quantities due to the different units of measure used to arrive at the value of inventory. Inventory items are in kilograms, litres, metres and units amongst others. To include one unit of measure over another may prove to be misleading.
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
238
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
ANNEXURE 7
MOVEMENT IN CAPITAL WORK IN PROGRESS
MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2017
Opening balance
Current Year Capital WIP
Completed Assets
Closing balance
R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED STRUCTURES 289,861 201,372 (134,193) 357,040
Non-residentialbuildings 289,861 201,372 (134,193) 357,040
TOTAL 289,861 201,372 (134,193) 357,040
Age analysis on ongoing projects Number of projects 2016/17
Planned, construction
not started
Planned, construction
started
Total
R’000 0 to 1 year 5 7 158,7121to3year(s) 6 14 165,268 3 to 5 years - 7 33,060 Longer than 5 years - - - Total 11 28 357,040
MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2016
Opening balance
Current Year Capital WIP
Completed Assets
Closing balance
R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED STRUCTURES
296,896 225,012 (232,046) 289,862
Dwellings 3,185 3,111 (6,296) -Non-residentialbuildings 293,711 221,901 (225,750) 289,862
TOTAL 296,896 225,012 (232,046) 289,862
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
239
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
ANNEXURE 8A
INTER-ENTITY ADVANCES PAID
ENTITY
Confirmedbalanceoutstanding
Unconfirmedbalanceoutstanding Total
31/03/2017 31/03/2016 31/03/2017 31/03/2016 31/03/2017 31/03/2016R’000 R’000 R’000 R’000 R’000 R’000
PUBLIC ENTITIESCurrentIndependent Development Trust (Roads)
- 9,002 6,783 - 6,783 9,002
Subtotal - 9,002 6,783 - 6,783 9,002
TOTAL - 9,002 6,783 - 6,783 9,002Current - 9,002 6,783 - 6,783 9,002Non-current - - - - - -
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
240
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
ANNEXURE 8B
INTER-ENTITY ADVANCES RECEIVED
ENTITY
Confirmedbalanceoutstanding
Unconfirmedbalanceoutstanding Total
31/03/2017 31/03/2016 31/03/2017 31/03/2016 31/03/2017 31/03/2016R’000 R’000 R’000 R’000 R’000 R’000
NATIONAL DEPARTMENTSCurrentNationalDepartmentofBasic Education
11,031 - - 2,507 11,031 2,507
Subtotal 11,031 - - 2,507 11,031 2,507
PROVINCIAL DEPARTMENTSCurrentEasternCape–Department of Education
- - 1,535 2,435 1,535 2,435
Subtotal - - 1,535 2,435 1,535 2,435
TOTAL 11,031 - 1,535 4,942 12,566 4,942Current 11,031 - 1,535 4,942 12,566 4,942Non-current - - - - - -
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
241
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
ANNEXURE 9
IMMOVABLE ASSETS ADDITIONAL DISCLOSUREThe immovable assets of the Department and its User Departments are recorded in the provincial immovable asset register and management system – Logica. Theimmovableassetsareclassifiedtodistinguishbetweenvariouslevelsofregistration.PropertiesregisteredinthenameoftheProvince;propertiesconfirmedvestedintermsofItem28(1)orSection239oftheConstitutionandformerstate-aidedModelCSchoolsconstituteLegalTitleasperNationalTreasuryguidelinesandisthereforerecordedinthefinancialstatementsoftheDepartment.
Excludedfromthisdisclosureareprovincialdeemed-ownedimmovablefixedassetsthatfalloutsidethedefinitionofLegalTitleaspertheSectorGuideonAccountingofImmovableAssets.TheseassetsincludeprovincialpropertiesnotyetconfirmedvestedintermsofItem28(1)toSchedule6oftheConstitutionandregisteredinthenameoftheProvinceoftheEasternCape.AstheGIAMAprocessesunfoldtheseassetswilleventuallybe“uplifted”intothedefinitionofLegalTitleandbeincludedintheauditedassetregisterforfinancialdisclosurepurposes.
FIXED ASSET RECORDING TYPE NUMBER
AUDITEDASSETS(legaltitle) 4,286
UNAUDITEDASSETS(deemedprovincialassets) 7,136
11,422
Thenumberof immovableassetscontrolledbytheDepartmentofRoadsandPublicWorksintermsofAct7of2000andsubsequentlyrecordedinLogica as unaudited on 31 March 2017 was 7,136 (inclusiveofStateDomesticFunctionsonmunicipalland,nationallandandlandofparastatalinstitutions).
Thesurveyingofprovincialstate-domesticfunctions(SDFs)onunsurveyedcommunallandintheformerTranskeiandCiskeiremainsachallenge.Thedepartmenthasidentified1,426 SDFs still to be surveyed in order to obtain Legal Title.
Atotalof3,111 propertieswererecordedasunregisteredstateland(noTitleDeedissued)intheunauditedlist.
TherecordedfiguresexcludetownshipestablishmentrelatedassetsunderthecustodianshipoftheDepartmentofHumanSettlements(e.g.RDP-housesandpublicopenspacesintownships).
LAND USE FUNCTION / FACILITY NUMBER OF FIXED ASSETS
AgriculturalLand(grazing,cultivationandirrigationfields) 30AgriculturalResearchStationsandExperimentalFarms 27CareCentersandOldAgeHomes 11Cemeteries 19Churches 1Clinics 620Colleges 7Crèches 14Educationrelatedfacilities(schoolssportgrounds,schoolhostels,etc.) 52Forestry(incl.plantations) -Halls(incl.communityhalls) 3Healthrelatedfacilities(hostelsforhealthstaff,mortuaries,etc.) 1Hospitals ¹ 111Libraries 2Museums 7Naturereservesandprotectedareas(incl.botanicalgardens) 133OfficesBuildings 157Parking Facilities 2Recreation(incl.operahouses,caravanparksandswimmingpools,playgrounds) 16
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
242
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
LAND USE FUNCTION / FACILITY NUMBER OF FIXED ASSETS
RoadCamps 52Road Reserves 64Residential(formaldwellings) 605Residential(informalsettlements) 8Residential(traditionalruralvillages) 96Retail(formalandinformalbusinesspremises) 20Schools(schoolbuildingsonly)² 4,334StorageFacilities(incl.depots,warehouses,stores,sheds,silos,etc.) 40Vacant Buildings / Facilities 9Vacant Land 628Miscellaneous(landusesnotcoveredabove) 67Total 7,136
TheDepartmenthasonlyoneuseagreement in the formofacaretakeragreementwithNationalPublicWorksfor 50housesinKingWilliam’sTown.NootherwrittenagreementsareinplacewithourDepartment.InthepastUserDepartmentsobtainreservationcertificatesorpermissiontooccupycertificatesforschoolandclinicswheresuchSDFsarelocatedoncommunalland.Thesereservationcertificatesarenowbeingreplacedbyformalsurveydiagrams and eventual state titles.
InadditiontotheabovetheDepartmentidentified1,056 provincialstatedomesticfunctions(SDFs)locatedonotherpublicland,i.e.municipalland.ThelocationofschoolsandclinicsandotherSDFsonmunicipallandisaresultofhistorictransfersduetoapartheidtownplanning(i.e.ProclamationR293/1962townships)andthelegacyofthehomelandborderindustrialtownsandlabourpractices.Theseassetsonmunicipallandaremanagedbynon-officialagreements of use and will eventually be transferred back to the Province after proper township establishment and/or land administration process are completed.
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
243
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
NOTES
244
VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS
NOTES
Physical AddressQhasana BuildingIndependent AvenueBhishoEastern CapePrivate bag X0022Bhisho5608Republic of South Africa
Switchboard: 040 602 4000Customer Care: 0800 864 951Presidential Hotline: 0800 17737Email:info@dpw.ecape.gov.zawww.ecdpw.gov.za
ANNUAL REPORT2016 / 17
PR: 260/2017ISBN: 978-0-621-45746-9
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