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royal household

Department: Royal Household PROVINCE OF KWAZULU-NATAL

ANNUAL REPORT 2012/2013

KZN DEPARTMENT OF THE ROYAL HOUSEHOLD

PRIVATE BAG X5023, NONGOMA, 3950

TEL: 035 8310300

FAX: 035 8310428

PR: 225/2013

ISBN: 976-0-621-42080-7

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royal household Department: Royal Household PROVINCE OF KWAZULU-NATAL

FOREWORD

Bayede! Hlanga lweZwe!

KwaZulu-Natal is the home to some of the founding fathers of the ANC, such as Dr John

Langalibalele Dube, PixleykaIsaka Seme, Josiah Gumede, Inkosi Albert Luthuli and the

President of the Republic, the honourable Jacob Zuma. Our history is unequivocal about the

role of the various senior members of the Royal Family in the wars against racial oppression

and their association with the noble ideals that inspired the formation of the ANC.

More than a hundred years later, our Monarchy continues to guide and inspire our political

leadership as we confront the challenges of modern times in an evolving Constitutional

Democracy such as ours. KwaZulu-Natal has, through legislation, ensured that the

institution of monarchy is preserved and plays a critical role in the improvement of the lives

of all the people in this Province.

The rich cultural heritage that we as a Province have inherited from the founders of the Zulu

Kingdom remains a pillar of one of our key economic strengths – tourism – which His

Majesty does so much to promote both locally and internationally. The Royal Household

has a catalytic effect on the promotion of tourism and building unity, thus creating social

conditions conducive to enhancing the economic growth and prosperity of our Province. We

note especially His Majesty’s role in diffusing the resurgence of political tensions during the

politically volatile times experienced in KZN.

We appreciate the role of ISilo in the promotion of human values, the fight against social ills,

the fight against HIV & AIDS, teenage pregnancy, crime and drugs. In many public

addresses ISilo has spoken out in support of the fight against rhino poaching and the

promotion of conservation of our environmental heritage. During the period of tenure of the

current administration, we appreciate the support by ISilo of Government programmes and

policies, especially with regard to cultural issues such as reviving male circumcision in a

surgical and hygienic manner and in promoting the Province locally and internationally.

We take this opportunity to congratulate His Majesty for being awarded the Order of St

Michael and All Angels by the Anglican Church. The Order is the highest recognition

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awarded by the Diocese of Zululand to lay persons who have rendered outstanding service

to the church and community.

We acknowledge the efforts of His Majesty in linking up with traditional leadership from

other African countries and we remain assured that with his support, this Province will

continue on its noble path towards a brighter and prosperous future.

Hlanga LoMhlabathi!

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TABLE OF CONTENTS

Page

Organisational chart

04

Part 1

Section 1 Strategic Vision 06-09

Section 2 Report of the Executive Authority 10

Part 2

Section 1 Submission of the Annual Report by the Accounting Officer 12

Section 2 Programme Information 13-16

Part 3

Report of the Audit and Risk Committee 18-20

Part 4

Annual Financial Statements 23-86

Part 5

Human Resources 88-102

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ORGANISATIONAL CHART

Office of the HOD

HR Management

Policies

Staffing Services

Labour Relations

Farming and Housekeeping

Farming Services

Housekeeping Services

Financial Management

Financial Services

Payments Control

Budget Planning

Information Technology & Risk

Management

Procurement and Auxiliary Services

Procurement

Auxiliary Services

Policy Research and Development

Kings Support Services

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PART 1

SECTION 1: STRATEGIC VISION SECTION 2: REPORT OF THE EXECUTIVE AUTHORITY

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STRATEGIC VISION

Overview of the service delivery environment for 2012/13

His Majesty has remained true to the commitment to avail the assistance of the Royal

Family in the promotion of the programmes of the Government. We are indebted to all the

Queens for their tireless efforts in this regard. Their embracing of our various initiatives has

enhanced the quality of our work as we strive to improve the lives of the people in KwaZulu-

Natal.

The positive impact of the Monarchy’s intervention in the betterment of the lives of our people can be seen in the following:-

The enthusiastic response to the King’s call for the re-introduction of the custom of male circumcision in the fight against HIV & Aids.

There are more than 105 000 males already circumcised.

ISilo always emphasises that circumcision is not a cure against HIV and AIDS and confers no immune status.

The King has been effective in conveying messages on healthy lifestyles, early regular check-ups and warned against diseases of lifestyle e.g. diabetes, cancers of uterus, breast and prostrate.

ISilo has called on men to support affected female partners and for females to be open about these diseases.

ISilo has persistently acted as:

The champion of peace, reconciliation and unity of all our people, and advising strongly against the destruction of statues and symbols of past governments and leaders and calling for these to be embraced as our common heritages;

An advocate for socio-economic development, including the provision of infrastructure such as roads, water, electricity, etc;

Promoter for the creation of sustainable livelihoods with people being an integral part of the fight to the eradication of poverty, talking strongly against dependence and indolence;

The champion for the building of schools and the provision of quality education;

A strong ally in the fight against crime;

A campaigner against corruption especially by those entrusted with high government official responsibility;

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An advocate for socially responsible conduct, speaking strongly against drunkenness and substance abuse;

A tireless campaigner for the respect of women’s rights and their emancipation, fighting against domestic violence and the abuse of women; and

A champion for the provision of support and protection of orphans and vulnerable groups in society, an aspect that the entire Royal Family is playing a significant role in the nearby and remote communities.

During 2012/13 His Majesty the King also undertook the following:

Participated in government events and ceremonies, such as the opening of the KZN Provincial Legislature, official opening of the KZN House of Traditional Leaders, and many other events organised by various departments.

Hosted major traditional events such as the Reed Dance, First Fruits and Amaganu ceremonies.

Hosted a number of dignitaries from other countries, such as the Israel Ambassador and prominent business people such as a delegation from Singapore, as a business ambassador to KZN.

Installed Amakhosi both statutorily and customarily.

Was involved in farming activities, such as crop and animal production.

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Aim of vote

The aim of the vote is to provide administrative support and strategic direction to His Majesty the King and the Royal Household in the execution of their statutory and customary functions in synergistic partnership with the provincial government of KZN.

Mission statement

The mission of the Department of the Royal Household is:

To create a sustainable, conducive environment for the Zulu Monarch in which to lead, develop and protect the Zulu Nation.

Strategic objectives in support of the mission statement

To identify His Majesty the King’s mandatory responsibilities in terms of legislation

To identify His Majesty the King’s mandatory responsibilities in terms of custom/tradition

To generate a schedule of events and ceremonies

To prepare an operational budget for His Majesty the King’s activities

To maintain and refurbish the Royal Palaces

To develop and implement a business strategy for the protection and promotion of Nguni cattle

To promote food production and agri-business

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Legislative mandates

The Traditional Leadership and Governance Framework Act (Act No. 41 of 2003)

The Royal Household protocols

The roles and functions of His Majesty the King in terms of custom and tradition

The roles and functions of His Majesty the King in terms of the provisions of the

Traditional Leadership and Governance Act (Act No. 5 of 2005)

Public Finance Management Act (Act No. 1 of 1999 as amended), and Treasury

Regulations

Employment Equity Act (Act No. 55 of 1998)

Skills Development Act (Act no. 97 of 1998)

Labour Relations Act (Act No. 66 of 1995)

Conditions of Remuneration of Public Office Bearers.

Public Service Act, No. 103 of 1994, as amended, and Public Service

Regulations of 2001

Policy documents in respect of the salary, benefits and privileges for His Majesty

the King

Custom and tradition (in respect of His Majesty the King’s responsibilities to

vulnerable groups)

Specific Cabinet Resolutions and instructions on the future of His Majesty the

King’s Farms

Preferential Procurement Policy Framework Act (Act No. 5 of 2000)

KZN Provincial SCM Policy Framework, 2006

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PART 1: SECTION 2

REPORT OF THE EXECUTIVE AUTHORITY

I am pleased to submit the 2012/13 Annual Report of the Department of the Royal

Household. This Annual Report accounts on key milestones and critical activities of the

department executed in terms of mandates such as the Traditional Leadership and

Governance Act, No. 41 of 2003 and The KwaZulu-Natal Traditional Leadership and

Governance Act, No. 5 of 2005.

In the 2012/13 financial year, the Department gave full support on the operations of the

Royal Trust, and an amount of R10,5-million was transferred. The Royal Trust was listed

as a Schedule 3C public entity during 2012/13 and although agreement was reached in

2012/13 on functions to be performed by the Department and the Royal Trust, the latter

was not yet fully operational. This was due to the fact that staff negotiations were not

concluded in 2012/13 as was anticipated, largely as a result of a lack of

managerial/supervisory capacity in the Royal Trust to oversee the staff who are employed

to support the Department. These staff are still managed and paid by the Department,

pending the finalization of the post establishment structure and job evaluation of posts.

During the transition period, while the Royal Trust engaged itself with the development of

policies, systems and procedures to ensure that adequate financial management and

human resource management controls are in place, the Department continued with its

routine activities such as administrative support to His Majesty the King, maintenance of

palaces and farming activities.

I wish to thank His Majesty the King and esteemed members of the Royal Family for the leadership, support and direction provided to the government and the people of KwaZulu Natal.

DDR ZL Mkhize

EExecutive Authority

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SECTION 1: SUBMISSION OF THE ANNUAL REPORT

BY THE ACCOUNTING OFFICER SECTION 2: PROGRAMME INFORMATION

PART 2

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PART 2: SECTION 1

SUBMISSION OF THE ANNUAL REPORT BY THE ACCOUNTING OFFICER

It is with great honour that I submit to the Executive Authority, The Honourable

Dr.Z.L.Mkhize, Premier of KwaZulu Natal, this, the Annual Report on the activities and

operations of the Department of the Royal Household, in terms of the Public Finance

Management Act of 1999, for the year ended 31 March 2013.

Mr NVE Ngidi

Acting Accounting Officer

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PART 2: SECTION 2

PROGRAMME INFORMATION

1. Summary of programmes

Programme 1: Support services – His Majesty the King

Programme 2: Royal Household Planning and Development

Programme 3: His Majesty the King’s Farms

2. Programme performance

2.1 Voted Funds

Programme

Adjusted

Appropriation

Final

Appropriation

Actual

Amount

Spent

Under

Expenditure

R’000 R’000 R’000 R’000

Programme 1:

Support services –

His Majesty the King

35,421 35,421 34,421 1,000

Programme 2:

Royal Household

Planning and

Development

26,085 26,085 24,393 1,692

Programme 3:

His Majesty the

King’s Farms

3,855 3,855 2,553 1,302

Total 65,361 65,361 61,367 3,994

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2.2. Service Delivery

Programme 1: Support services – His Majesty the King

Purpose

The purpose of this programme is to provide administrative and auxiliary services to His

Majesty the King and the Royal Family. It is charged with the responsibility to ensure that

His Majesty the King and the Royal Family execute the mandate as provided for in the

legislation. It is also responsible for the development and protection of the Monarchy as a

provincial brand. The programme is supported by sub-components as shown in the

department’s design structure. Additional activities towards the transformation of the

Department in terms of Cabinet instructions are included in this programme.

Service delivery achievements (explanations for variances are provided under each measurable objective)

Measurable objective Performance indicator Target Actual Variance

To identify His Majesty the

King’s mandatory

responsibilities in terms of

legislation

Number of Amakhosi

installed statutorily 5 6

1

The number of Amakhosi installed is dependent on the request received from COGTA. The department executed this function as per the requests from COGTA for the current financial year.

To identify His Majesty the

King’s mandatory

responsibilities in terms of

custom/tradition

Number of Amakhosi

installed in terms of

custom

5 10

5

The number of Amakhosi installed is dependent on the request received from COGTA. The department executed this function as per the requests from COGTA for the current financial year.

To generate a schedule of

events and ceremonies

Number of events and

ceremonies 10 14 4

Apart from the regular events/ceremonies held, His Majesty the King also hosted various dignitaries such as the President of South Africa and various MEC’s and Mayors.

To prepare an operational

budget in terms of His

majesty the King’s

activities

Annual Performance

Plan & Strategic Plan 2012/13 completed none

No variance identified.

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Programme 2: Royal Household Planning and Development

Purpose

This programme is responsible for overall infrastructure design and maintenance. The

core activities include the refurbishment of Palaces.


Measurable objective Performance indicator Target Actual Variance

To maintain and refurbish

palaces

Number of

maintenance projects 10 33 23

Due to the roll-over of funds from the 2011/12 financial year several capital projects were accordingly rolled-over and completed in the current financial year.

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Programme 3: His Majesty the King’s Farms Purpose

This programme is responsible for the operation and maintenance of the farms. It has to

ensure commercial viability and customary relevance in terms of the farms being able to

contribute to poverty alleviation and other responsibilities of His Majesty the King in his

role as guardian and protector of the vulnerable.


Measurable objective Performance measure Target Actual Variance

To develop and implement

a business strategy for the

protection and promotion

of Nguni cattle

Number of animals

vaccinated 1,300 1,800 500

His Majesty the King acquired and received as donations in his personal capacity more animals than was anticipated.

To promote food

production and agri-

business

Number of hectares

planted 120 22 (98)

Priority was given to the vaccination of animals and since there was a larger than expected number of animals to vaccinate the department did not have enough budget to plant the required number of crops.

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PART 3

REPORT OF THE AUDIT AND RISK COMMITTEE

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REPORT OF THE AUDIT & RISK COMMITTEE ON

VOTE 10 – THE ROYAL HOUSEHOLD

The KwaZulu-Natal Provincial Audit & Risk Committee is pleased to present its report for the

financial year ended 31 March 2013.

Provincial Audit & Risk Committee Members and Attendance

The Provincial Audit and Risk Committee (the PARC) consists of the members listed hereunder.

The PARC is split into three (3) Cluster Audit & Risk Committees (the CARC) which consists of

members of the PARC; is responsible for the Governance & Administration, Social and Economic

Clusters respectively and reporting into the PARC. The Chairman of the PARC is also the

Chairman of the different CARCs and attends all CARC meetings. The CARC and the PARC are

required to meet at least four times and two times respectively in a financial year. During the

financial year ending 31 March 2013, a total of sixteen meetings (16) were held, namely, two (2)

PARC meetings, twelve (12) CARC meetings, and two (2) special meetings. Members attended the

meetings as reflected below:

Surname &

Initial

PARC CARC Special Total no.

of

Meetings

Total no. of

Meetings

Attended

No. of

Meetings

Held

Attended No. of

Meetings

Held

Attended No. of

Meetings

Held

Attended

Ms T Tsautse

(Chairman) 2 2 12 12

# 2 2 16 16

Ms M Mothipe 2 2 4 4* 2 2 8 8

Ms N Jaxa 2 2 4 4* 2 2 8 8

Mr L Mangquku 2 2 4 4* 2 2 8 8

Mr T Boltman 2 2 4 4* 2 2 8 8

Mr F Docrat 2 2 4 4* 2 2 8 8

Mr V Naicker 2 2 4 2* 2 2 8 6

* - 4 Meetings per cluster were held

# - Chairman attends all CARC meetings

Provincial Audit & Risk Committee Responsibility

The Provincial Audit and Risk Committee reports that it complied with its responsibilities arising

from the Public Finance Management Act, No.1 of 1999 (PFMA), Treasury Regulations, including

any other statutory and other regulations. The Provincial Audit and Risk Committee also reports

that it adopted appropriate formal terms of reference as its Provincial Audit and Risk Committee

Charter, regulated its affairs in compliance with this charter and discharged all its responsibilities as

contained therein.

The Effectiveness of Internal Control

The systems of internal control are the responsibility of the department’s management and are

designed to provide effective assurance that assets are safeguarded and that liabilities and working

capital are efficiently managed. In line with the requirements of the PFMA and the principles of the

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King III Report on Corporate Governance, the Internal Audit Function provides the Provincial Audit

and Risk Committee and the departmental management with assurance that the systems of internal

controls are appropriate and effective. This is achieved by means of the risk management process,

as well as the identification of corrective actions and suggested enhancements to the controls and

processes. From the various reports of the Internal Auditors; and the Report and Management

letter of the Auditor-General on the Annual Financial Statements, it was noted that the systems of

internal control and financial internal controls were not effective and inadequate in certain areas for

the entire year under review as control deficiencies were detected in the following significant areas:

Human Resource Management

Asset Management

Supply Chain Management

Contract Management

Subsistence & Travel allowances

Fleet Management

Information Technology General and Application Controls

Maintenance of Palaces

The quality of “In Year Monitoring” and monthly / quarterly reports submitted in terms of the

Treasury Regulations and the Division of Revenue Act

The Provincial Audit and Risk Committee was satisfied with the content and quality of monthly and

quarterly reports prepared and issued by the Accounting Officer and the department during the year

under review.

Audit of Performance Information The monitoring of the department’s performance is a key function of the executive management of the department. The Provincial Audit & Risk Committee has no direct line of responsibility over the department’s performance. However, the Provincial Audit and Risk Committee is responsible for ensuring, principally through the Internal Audit Function that the systems of performance management, measurement and reporting; as well as the systems of internal control that underpin the performance management framework of the department, remain robust and are reviewed routinely in the internal audit plans. The Committee has accepted the responsibility of ensuring that adequate reporting on performance information is in line with its mandate and charter. The Committee reviewed the reports relating to Performance Information and noted that there was a lack of policies and procedures relating to performance information. Internal Audit Function The Provincial Audit & Risk Committee provides oversight and monitors the activities of the Internal Audit Function. Consequently, the Committee is able to report on the effectiveness and efficiency of the function. The function was effective during the period under review and there were no unjustified restrictions or limitations. The Committee will in the forthcoming year, monitor progress to ensure that the Internal Audit Function continues to add value to the department and achieves its optimal performance.

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Risk Management Function

Risk Management is a proactive discipline that is intended to provide reasonable assurance that the department will achieve its objectives. During this financial year, the Committee reviewed risk reports of the department on a quarterly basis, with particular focus being on:

- Reviewing the Risk Maturity Gap Analysis Report as compiled and presented by the PIAS to determine if this department has key structures and policies to take over its risk management responsibilities.

The result of this analysis was discussed with the department’s management, and the

department was advised to build its internal risk management capacity through, among

other things, the appointment of a Risk Manager at an appropriate level – i.e. the Risk

Manager should be appointed at level 13 and should report directly to the HOD.

- Reviewing progress report on the implementation of risk mitigation plans. The department

was urged to finalise the outstanding risk mitigation plans and to update its risk register with completed risk mitigations plans and emerging risks.

Other Governance Issues As part of its governance responsibilities, the Committee also monitors the fraud prevention strategies that have been developed and implemented by provincial departments, and these responsibilities include monitoring the implementation of recommendations arising from forensic investigations.

During the period under review, the Committee noted that the department had 1 investigation that

was completed and 2 investigations in progress at year end, all of which were conducted by the

Provincial Treasury’s Internal Audit Function. The department was urged to implement recommendations arising from the completed investigation, and to provide the Internal Audit Function with a detailed list of all other investigations being conducted internally or by other relevant authorities.

Evaluation of Financial Statements

The Provincial Audit and Risk Committee reviewed the Annual Financial Statements of the Department, as well as the Auditor General’s management report together with management’s response thereto. The Provincial Audit and Risk Committee concurs and accepts the Auditor-General’s conclusions on the annual financial statements, and is of the opinion that the audited annual financial statements be accepted and read together with the report of the Auditor-General.

__________________________________________

Chairperson: Provincial Audit & Risk Committee

Date: 31 July 2013

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PART 4

ANNUAL FINANCIAL STATEMENTS

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Table of contents

Page

Report of the Accounting Officer 23-27

Report of the Auditor-General 28-31

Appropriation Statement 32-36

Notes to the Appropriation Statement 37-38

Statement of Financial Performance 39

Statement of Financial Position 40

Statement of Changes in Net Assets 41

Cash Flow Statement 42

Accounting Policies 43-50

Notes to the Annual Financial Statements 51-65

Disclosures Notes to the Annual Financial Statements 66-78

Annexures 79-86

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DEPARTMENT OF THE ROYAL HOUSEHOLD VOTE 10

REPORT OF THE ACCOUNTING OFFICER

For the year ended 31 March 2013

Report by the Accounting Officer to the Executive Authority and the KwaZulu-Natal Provincial

Legislature.

1. General review of the state of financial affairs

Important policy decisions and strategic issues facing the Department

The Department made no changes to the purposes of its programmes and reported on

information on pre-determined objectives.

The sub-programme Royal Trust has been included under Programme1: Support Services – His

Majesty the King to account for the appropriation and the transfer to the Royal Household Trust.

An amount of R 10,500m was transferred to the Royal Household Trust during the course of the

financial year. The Royal Household Trust will account for these funds in their annual financial

statements.

The Department’s budget was under spent in all three Programmes and the overall budget for

Vote 10 achieved a savings of R 3,994 m.

Significant Events

The Royal Trust was listed as a Schedule 3C public entity during 2012/13. Although agreement

was reached in 2012/13 on functions to be performed by the Department and the Royal Trust,

the latter was not yet fully operational. This was due to the fact that staff negotiations were not

concluded in 2012/13 as was anticipated, largely as a result of a lack of managerial/supervisory

capacity in the Royal Trust to oversee the staff who are employed to support the Department.

These staff are still managed and paid by the Department, pending the finalization of the post

establishment structure and job evaluation of posts.

During the transition period, while the Royal Trust engaged itself with the development of

policies, systems and procedures to ensure that adequate financial management and human

resource management controls are in place, the Department continued with its routine activities

such as administrative support to His Majesty the King, maintenance of palaces and farming

activities.

Other key areas have been highlighted under separate headings for ease of reference.

a) His Majesty, the King’s, Farms

It must be noted that, although none of His Majesty the King’s Farms appear to be commercially

viable in terms of the feasibility studies undertaken, the Department continued with subsistence

farming activities. The farming activities undertaken on the farms included animal disease

control, Nguni and Boran breeding, providing and fencing of grazing areas, plant production

24


which include providing inputs, ploughing and planting, harvesting of crops such as beans and

maize, and fencing of arable land.

b) Royal Household Planning and Development

The Royal Palaces are central to His Majesty, the King’s, capacity to carry out his roles and

functions. This entails that each palace has to be maintained to its optimum level of functionality.

Major Projects

The Department continued with the renovation and refurbishment, as well as repairs and

maintenance projects to the Royal residences. These projects included the construction of new

buildings, such as rondavels, a cold-room and a garage at the KwaDlamahlahla and Ingwavuma

palaces, renovations of KwaKhethomthandayo, KwaKhangela and Kwalinduzulu palaces. A

water reticulation system was provided at KwaKhethomthandayo palace and a new generator at

Ondini palace.

Spending Trends

PROGRAMME 1: SUPPORT SERVICES: HIS MAJESTY, THE KING UNDER R 1,000m

The expenditure in this programme was under spent due to savings identified under the

categories goods and services and machinery.

The purpose of this programme is to provide administrative and auxiliary services to His Majesty,

the King, and the Royal Family.

PROGRAMME 2: ROYAL HOUSEHOLD PLANNING & DEVELOPMENT UNDER R 1,692m

The expenditure in this programme was under-spent as certain capital projects are still in

progress.

This programme is responsible for the overall infrastructure, design and maintenance of the

Royal Household, with its core activity being the refurbishment of Palaces.

PROGRAMME 3: HIS MAJESTY THE KING’S FARMS UNDER R 1,302m

The expenditure in this programme was under-spent due the savings achieved under the

category compensation of employees.

This programme is responsible for the operation and maintenance of the farms. It ensures

commercial viability and customary relevance in terms of the farms being able to contribute to

poverty alleviation and other responsibilities of his Majesty the King, in his role as guardian and

protector of the vulnerable.

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Virements and Shifting of funds

There were no virements or shifting of funds.

Corporate Governance Arrangements

The Department is committed to the principles of sound corporate governance and is aware of

its responsibilities and accountability in this respect.

2. Services rendered by the Department

2.1 List of Services

The services rendered by the Department are outlined in the programmes below:

PROGRAMME 1: SUPPORT SERVICES: HIS MAJESTY, THE KING

The purpose of this programme is to provide administrative and auxiliary services to His Majesty

the King and the Royal Family.

PROGRAMME 2: ROYAL HOUSEHOLD PLANNING AND DEVELOPMENT

This programme is responsible for the overall infrastructure, design and maintenance of the

Royal Household, with its core activity being the refurbishment of Palaces.

PROGRAMME 3: HIS MAJESTY, THE KINGS FARMS

This programme is responsible for the operation and maintenance of the farms. It ensures

commercial viability and customary relevance in terms of the farms being able to contribute to

poverty alleviation and other responsibilities of his Majesty, the King, in his role as guardian and

protector of the vulnerable.

2.2 Tariff policy None

2.3 Free Services

None

2.4 Inventories There were no inventories on hand at year end as these items were consumed upon purchase.

3. Capacity constraints The Department has not filled crucial posts in the Finance and Human Resources components.

26


4. Utilisation of donor funds

None 5. Trading entities and public entities

The Royal Household Trust receives a transfer payment from the Department to fund its operations. 6. Organisations to whom transfer payments have been made Transfer payments were made to the Royal Household Trust as mentioned above. Transfer payments were also made to households for leave gratuities and to the Department of Transport for vehicle licences. 7. Public private partnerships (PPP)

No Public Private Partnerships have been entered into by the Department during the financial

year under review. 8. Corporate governance arrangements

The Department operates in compliance with the Constitution of the Republic of South Africa, the

Public Finance Management Act, 1999 (Act No. 1 of 1999), the Public Service Act and all other

relevant legislation governing its operations.The Department’s management team is committed

to the principles of sound corporate governance and are aware of their responsibilities and

accountability in this respect. 9. Discontinued activities/activities to be discontinued

A task team consisting of the Office of the Premier, Provincial Treasury, the Department of the

Royal Household and the Royal Trust, was appointed in 2012/13 to resolve matters such as the

transfer of staff, performance of duties relating to His Majesty’s Queens, etc., and the transfer of

functions from the Department to the Royal Trust. To date, major milestones achieved by the

task team include agreement between the Department and the Royal Trust on the functions to

be performed by the respective entities and agreement on interim arrangements in respect of

staffing and budget. It must be noted that the roles, responsibilities and functions agreed upon

will then form the basis for further planning currently underway, in respect of staff structures,

staff negotiations and funding requirements. 10. New/proposed activities

The Department will continue to transfer funds to the Royal Trust for operational costs. The Department will also continue with renovations and refurbishments of palaces and will continue to support His Majesty the King’s farming activities such as animal and crop production. His Majesty the King will continue to participate in government ceremonies and events, install Amakhosi, host the First Fruits and Reed Dance ceremonies, among others, and undertake both national and international trips as a business ambassador.

11. Asset management

The minimum requirements for the completion of the asset register and all asset management

reforms and milestones have been complied with.

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12. Inventories

All inventory opening and closing balances, together with movements for the year have been disclosed in Annexure 6 of the annual financial statements.

13. Events after the reporting date

No significant events have occurred after the reporting date.

14. Information on pre-determined objectives

All information on pre-determined objectives was reported on a quarterly basis to Provincial

Treasury. This information was compiled by the department and reviewed by the Chief Financial

Officer prior to submission.

15. SCOPA resolutions None 16. Prior modifications to audit reports None 17. Exemptions and deviations received from the National Treasury The department has applied the exemption as granted by National Treasury and thus where there is uncertainty with regard to ownership of immovable assets these have not been disclosed on the face of the annual financial statements. 18. Interim Financial Statements

Interim financial statements were prepared and submitted to Provincial Treasury for the periods ended 30 September 2012 and 31 December 2012. 19. Other None

20. Approval

The Annual Financial Statements have been approved by the Accounting Officer.

Mr NVE Ngidi

Acting Accounting Officer

Department of the Royal Household

31 May 2013

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DEPARTMENT OF THE ROYAL HOUSEHOLD

VOTE 10

REPORT OF THE AUDITOR-GENERAL

REPORT OF THE AUDITOR-GENERALTO THE KWAZULU-NATAL PROVINCIAL

LEGISLATURE ON VOTE NO. 10: THE DEPARTMENT OF THE ROYAL

HOUSEHOLD

REPORT ON THE FINANCIAL STATEMENTS

Introduction 1. I have audited the financial statements of the Department of the Royal Household

set out on pages 32 to 78, which comprise the appropriation statement, the statement of financial position as at 31 March 2013, the statement of financial performance, statement of changes in net assets and the cash flow statements for the year then ended, and the notes, comprising a summary of significant

accounting policies and other explanatory information.

Accounting officer’s responsibility for the financial statements 2. The accounting officer is responsible for the preparation of the financial statements

in accordance with the Departmental financial reporting framework prescribed by

National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and Division of Revenue Act of South Africa, 2012 (Act No. 5 of 2012) (DoRA) and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-General’s responsibility 3. My responsibility is to express an opinion on the financial statements based on my

audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the general notice issued in terms thereof and

International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the department’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the department’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

29


Opinion 6. In my opinion, the financial statements present fairly, in all material respects, the

financial position of the Department of the Royal Household as at 31 March 2013, and its financial performance and cash flows for the year then ended in accordance with the Departmental financial reporting framework prescribed by the National

Treasury and the requirements of the PFMA and DoRA.

Additional matters 7. I draw attention to the matters below. My opinion is not modified in respect of these

matters.

Unaudited supplementary schedules

8. The supplementary information set out on pages 79 to 86 does not form part of the financial statements and is presented as additional information. I have not audited these schedules and, accordingly, I do not express an opinion thereon.

Financial Reporting Framework

9. The financial reporting framework prescribed by the National Treasury and applied by the department is a compliance framework. The wording of my opinion on a compliance framework should reflect that the financial statements have been prepared in accordance with this framework and not that they “present fairly”. Section 20(2)(a) of the PAA, however, requires me to express an opinion on the fair presentation of the financial statements. The wording of my opinion therefore reflects this requirement.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

10. In accordance with the PAA and the general notice issued in terms thereof, I report

the following findings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.

Predetermined objectives

11. I performed procedures to obtain evidence about the usefulness and reliability of the information in the annual performance report as set out on pages 14 to16 of the annual report.

12. The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance is consistent with the planned objectives. The usefulness of information further relates to whether indicators and targets are measurable (i.e. well defined, verifiable, specific, measurable and time bound) and relevant as required by the National Treasury Framework for managing programme performance information.

The reliability of the information in respect of the selected programmes is assessed

to determine whether it adequately reflects the facts (i.e. whether it is valid,

accurate and complete).

30


13. There were no material findings on the annual performance report concerning the

usefulness and reliability of the information.

Additional matter

14. Although no material findings concerning the usefulness and reliability of the performance information were identified in the annual performance report, I draw attention to the following matter below.

Material adjustments to the annual performance report

15. Material misstatements in the annual performance report were identified during the audit, all of which were corrected by management.

Compliance with laws and regulations

16. I performed procedures to obtain evidence that the department has complied with applicable laws and regulations regarding financial matters, financial management and other related matters. My findings on material non-compliance with specific matters in key applicable laws and regulations as set out in the general notice

issued in terms of the PAA are as follows:

Annual financial statements

17. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework as required by section 40(1)(a) and (b) of the PFMA . Material misstatements of disclosure items identified by the auditors in the submitted financial statements were subsequently corrected.

Expenditure management

18. The accounting officer did not take effective steps to prevent irregular expenditure, as required by section 38(1)(c)(ii) of the PFMA and Treasury Regulation (TR) 9.1.1.

Procurement and contract management

19. Goods and services with a transaction value below R500 000 were procured without obtaining the required price quotations, as required by TR 16A6.1.

20. Quotations were awarded to suppliers whose tax matters had not been declared by the South African Revenue Services (SARS) to be in order as required by TR 16A9.1 (d) and the Preferential Procurement Regulations (PPR).

21. Contracts and quotations were awarded to bidders who did not submit a declaration on whether they are employed by the state or connected to any person employed by the state, which is prescribed in order to comply with TR 16A8.3.

22. Contracts were awarded to bidders who did not submit a declaration of past supply chain practices such as fraud, abuse of supply chain management (SCM) system and non-performance, which is prescribed in order to comply with TR 16A9.2.

31


Internal control 23. I considered internal control relevant to my audit of the financial statements, annual

performance report and compliance with laws and regulations. The matters reported below under the fundamentals of internal control are limited to the significant deficiencies that resulted in the findings on compliance with laws and regulations included in this report.

Leadership

24. The vacancies in key posts for the year under review negatively impacted on the oversight and monitoring functions that are the responsibility of leadership and management. Leadership has been ineffective in holding management accountable for the credibility of the information and reports provided for oversight and decision-making.

Financial and performance management

25. The monitoring of compliance with laws and regulations, as well as the implementation and application of departmental policies and procedures was ineffective during the year under review.

OTHER REPORTS

Investigations

26. Two investigations are in progress relating to abuse/fraudulent use of petrol cards by staff members and department officials that are trading with the department.

Pietermaritzburg

31 July 2013


APPROPRIATION STATEMENT


32

Details per programme

Appropriation per programme

2012/13 2011/12

Adjusted

Appropriation

Shifting of

Funds

Virement

Final

Appropriation

Actual

Expenditure

Variance

Expenditure

as % of

final

appropriation

Final

Appropriation

Actual

Expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

1. Support services: His Majesty The King

Current payment 21,574 - - 21,574 21,231 343 98.4% 20,898 27,551

Transfers and subsidies 10,858 - - 10,858 10,800 58 99.5% 12,130 11,392

Payment for capital assets 1,189 - - 1,189 590 599 49.6% 680 505

Payment for financial assets 1.800 - - 1,800 1,800 - 100% 3,767 3,767

2. Royal Household Planning and

Development

Current payment 9,661 - - 9,661 11,339 (1,678) 117.4% 10,586 11,677

Transfers and subsidies 183 - - 183 253 (70) 138.3% 73 132

Payment for capital assets 16,241 - - 16,241 12,801 3,440 78.8% 8,970 2,527

3. His Majesty The King’s Farms

Current payment 3,775 - - 3,775 2,304 1,471 61.0% 3,524 1,858

Transfers and subsidies 80 - - 80 81 (1) 101.3% 15 -

Payment for capital assets - - - - - - - - -

Payment for financial assets - - - - 168 (168) - - -

TOTAL 65,361 - - 65,361 61,367 3,994 93.9% 60,643 59,409

Reconciliation with Statement of Financial Performance

Add:

Departmental receipts 99 154

Actual amounts per Statements of Financial Performance (Total revenue) 65,460 60,797

Actual amounts per Statements of Financial Performance (Total expenditure) 61,367 59,409


APPROPRIATION STATEMENT


33

Details per Economic classification

Adjusted

Appropriation

Shifting of

Funds

Virement

Final

Appropriation

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriation

Actual

expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments

Compensation of employees 21,264 - - 21,264 21,394 (130) 100.6% 21,358 20,093

Goods and services 13,746 - - 13,746 15,516 230 98.3% 13,650 20,993 Transfers and subsidies

Departmental agencies and accounts 10,800 - - 10,800 10,500 300 97.2% 12,000 11,300 Provinces and municipalities 8 - - 8 28 (20) 350.0% 7 - Households 313 - - 313 606 (293) 193.6% 211 224

Payment for capital assets Buildings and other fixed structures 16,204 - - 16,204 12,738 3,466 78.6% 8,782 2,527

Machinery and equipment 1,226 - - 1,226 617 609 50.3% 868 505 Biological assets - - - - - - - - -

Payment for financial assets 1,800 - - 1,800 1,968 (168) 109.3% 3,767 3,767

Total 65,361 - - 65,361 61,367 3,994 93.9% 60,643 59,409


Detail per programme 1- Support Services: His Majesty the King


34

Details per Sub-programme

2012/13 2011/12

Adjusted

Appropriation

Shifting of

Funds

Virement

Final

Appropriation

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriation

Actual

expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

King’s office Support Services

Current payments 21,574 - - 21,574 21,231 343 98.4% 20,898 27,551 Transfers and subsidies 58 - - 58 300 (242) 517.2% 130 92 Payment for capital assets 1,189 - - 1,189 590 599 49.6% 680 505

Payment for financial assets 1,800 - - 1,800 1,800 - 100.0% 3,767 3,767 Royal Trust

Transfers and subsidies 10,800 - - 10,800 10,500 300 97.2% 12,000 11,300

Total 35,421 - - 35,421 34,421 1000 97.2% 37,475 43,215


2012/13 2011/12

Adjusted

Appropriation

Shifting of

Funds

Virement

Final

Appropriation

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriation

Actual

expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments

Compensation of employees 10,132 - - 10,132 10,151 (19) 100.2% 9,801 9,801 Goods and services 11,442 - - 11,442 11,080 362 96.8% 11,097 17,750

Transfers and subsidies

Provinces and municipalities 8 - - 8 28 (20) 350.0% 7 -

Departmental agencies and accounts 10,800 - - 10,800 10,500 300 97.2% 12,000 11,300 Households 50 - - 50 272 (222) 544.0% 123 92

Payment for capital assets

Machinery and equipment 1,189 - - 1,189 590 599 49.6% 680 505

Payment for financial assets 1,800 - - 1,800 1,800 - 100.0% 3,767 3,767

Total 35,421 - - 35,421 35,421 1,000 97.2% 37,475 43,215


Detail per programme 2- Royal Household Planning and Development


35

Details per Sub-Programme

2012/13 2011/12

Adjusted

Appropriation

Shifting of

Funds

Virement

Final

Appropriation

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriation

Actual

expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Support Services: His Majesty The King

Current payments 9,661 - - 9,661 11,339 (1,678) 117.4% 10,586 11,677 Transfers and subsidies 183 - - 183 253 (70) 138.3% 73 132

Payment for capital assets 16,241 - - 16,241 12,801 3.440 78.8% 8,970 2,527 Payment for financial assets - - - - - - - - -

Total 26,085 - - 26,085 24,393 1,692 93.5% 19,629 14,336


2012/13 2011/12

Adjusted

Appropriation

Shifting of

Funds

Virement

Final

Appropriation

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriation

Actual

expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments

Compensation of employees 8,471 - - 8,471 9,816 (1,345) 115.9% 9,109 9,102 Goods and services 1,190 - - 1,190 1,559 (369) 131.0% 1,477 2,575


Households 183 - - 183 253 (70) 138.3% 73 132

Payment for capital assets

Buildings and other fixed structures

16,204 - - 16,204 12,738 3,466 78.6% 8,782 2,527

Machinery and equipment 37 - - 37 27 10 73.0% 188 - Payment for financial assets - - - - - - - - -

Total 26,085 - - 26,085 24,393 1,692 93.5% 19,629 14,336


Detail per programme 3- His Majesty the King’s Farms


36

Details per sub programme

2012/13 2011/12

Adjusted

Appropriation

Shifting

of Funds

Virement

Final

Appropriation

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriation

Actual

expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

His Majesty The King’s Farms Current payments 3,775 - - 3,775 2,304 1,471 61.0% 3,524 1,858

Transfers and subsidies 80 - - 80 81 (1) 101.3% 15 - Payment for financial assets - - - - 168 (168) - - -

Total 3,855 - - 3,855 2,553 1,302 66.2% 3,539 1,858


2012/13 2011/12

Adjusted

Appropriation

Shifting

of Funds

Virement

Final

Appropriation

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriation

Actual

expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments

Compensation of employees 2,661 - - 2,661 1,427 1,234 53.6% 2,448 1,190 Goods and services 1,114 - - 1,114 877 237 78.7% 1,076 668


Households 80 - - 80 81 (1) 101.3% 15 -

Payment for financial assets - - - - 168 (168) - - -

Total 3,855 - - 3,855 2,553 1,302 66.2% 3,539 1,858

-

37



NOTES TO THE APPROPRIATION STATEMENT


1. Detail of transfers and subsidies as per Appropriation Act (after Virement):

Details of these transactions can be viewed in note 6 (Transfers and subsidies) and

annexures 1A and 1B to the Annual Financial Statements.

2. Detail of specifically and exclusively appropriated amounts voted (after

Virement):

Details of these transactions can be viewed in note 1 (Annual Appropriation) to the

Annual Financial Statements.

3. Detail on payments for financial assets

Details of these transactions per category can be viewed in the note Payments for

financial assets to the Annual Financial Statements.

4. Explanations of material variances from Amounts Voted (after Virement):

3.1 Per Programme

Final

Appropriation

Actual

Expenditure

Variance Variance as a

% of Final

Appropriation R’000 R’000 R’000

Programme 1:

Support services: His Majesty

the King

35,421 34,421 1,000 2.82

The spending in Programme 1 was in line with the budget.

Programme 2:

Royal Household: Planning &

Development

26,085 24,393 1,692 6.49

Savings in Programme 2 were identified under the category Buildings and other fixed structures as

certain capital projects are still in progress.

Programme 3:

His Majesty The King’s Farms 3,855 2,553 1,302 33.77

Savings in Programme 3 occurred in the category Compensation of employees.

38



VOTE 10

NOTES TO THE APPROPRIATION STATEMENT For the year ended 31 March 2013

3.2 Per Economic classification

Final

Appropriation

Actual

Expenditure

Variance Variance as a

% of Final

Appropriation R’000 R’000 R’000

Current payment:

Compensation of employees 21,264 21,394 (130) (0.61)

Goods and services 13,746 13,516 230 1.67

Transfers and subsidies:

Provinces and municipalities 8 28 (20) (250.00)

Departmental agencies and accounts 10,800 10,500 300 2.78

Households 313 606 (293) (93.61)

Payments for capital assets:

Buildings and other fixed structures 16,204 12,738 3,466 21.39

Machinery and equipment 1,226 617 609 49.67

Payments for financial assets 1,800 1,968 (168) (9.33)

EXPLANATION OF MATERIAL VARIANCES

Transfers and subsidies: Households

Overspending realised as a result of leave gratuity payments that were made.


Savings identified as certain capital projects are still in progress.

Machinery and equipment

Savings identified as some vehicles were received before year end but not paid for as at 31 March 2013.

39



STATEMENT OF FINANCIAL PERFORMANCE


2012/13 2011/12

Note R'000 R'000

REVENUE

Annual appropriation 1 65,361 60,643

Departmental revenue 2 99 154

TOTAL REVENUE 65,460 60,797

EXPENDITURE

Current expenditure

Compensation of employees 3 21,394 20,093

Goods and services 4 13,516 20,993

Total current expenditure 34,910 41,086


Transfers and subsidies 6 11,134 11,524

Total transfers and subsidies 11,134 11,524

Expenditure for capital assets

Tangible capital assets 7 13,355 3,032

Total expenditure for capital assets 13,355 3,032

Payments for financial assets 5 1,968 3,767

TOTAL EXPENDITURE 61,367 59,409

SURPLUS FOR THE YEAR 4,093 1,388

Reconciliation of Net Surplus for the year

Voted Funds 3,994 1,234

Annual appropriation 3,994 1,234

Departmental revenue and NRF Receipts 99 154

SURPLUS FOR THE YEAR 4,093 1,388

40



STATEMENT OF FINANCIAL POSITION


2012/13 2011/12

Note R'000 R'000

ASSETS

Current Assets 16,944 17,367

Unauthorised expenditure 8 11,284 13,084 Receivables 9 5,660 4,283

TOTAL ASSETS 16,944 17,367

LIABILITIES

Current Liabilities 16,944 17,366 Voted funds to be surrendered to the Revenue Fund

10 3,994 6,984

Departmental revenue to be surrendered to the Revenue Fund

11 11 (200)

Bank overdraft 12 12,329 10,004 Payables 13 610 578

TOTAL LIABILITIES 16,944 17,366

NET ASSETS - 1

Represented by: Recoverable revenue - 1

TOTAL - 1

41



STATEMENT OF CHANGES IN NET ASSETS


2012/13 2011/12

R'000 R'000

Recoverable revenue

Opening balance 1 -

Transfers: (1) 1

Irrecoverable amounts written off - -

Debts recovered (included in departmental receipts) (1)

Debts raised - 1

Closing balance

TOTAL - 1

42



CASH FLOW STATEMENT


2012/13 2011/12

Note R'000 R'000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 65,460 60,797

Annual appropriated funds received 1 65,361 60,643

Departmental revenue received 2 99 154

Net decrease/(increase) in working capital 455 (3,599)

Surrendered to Revenue Fund (6,872) (264)

Current payments (34,910) (35,346)

Payments for financial assets (1,968) (3,767)

Transfers and subsidies paid (11,134) (11,524)

Net cash flow from operating activities 14 11,031 6,297

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for capital assets 7 (13,355) (3,032)

Net cash flow from investing activities (13,355) (3,032)

CASH FLOWS FROM FINANCING ACTIVITIES

(Decrease)/Increase in net assets (1) 1

Net cash flow from financing activities (1) 1

Net (decrease)/increase in cash and cash equivalents (2,325) 3,266

Bank overdraft at beginning of period (10,004) (13,270)

Bank overdraft at end of period 15 (12,329) (10,004)

43



ACCOUNTING POLICIES


The Financial Statements have been prepared in accordance with the following policies, which

have been applied consistently in all material aspects, unless otherwise indicated. However,

where appropriate and meaningful, additional information has been disclosed to enhance the

usefulness of the Financial Statements and to comply with the statutory requirements of the

Public Finance Management Act, Act 1 of 1999 (as amended by Act 29 of 1999), and the

Treasury Regulations issued in terms of the Act and the Division of Revenue Act, Act 1 of 2010.

1. Presentation of the Financial Statements

1.1.1 Basis of preparation

The Financial Statements have been prepared on a modified cash basis of accounting, except where stated otherwise. The modified cash basis constitutes the cash basis of accounting supplemented with additional disclosure items. Under the cash basis of accounting transactions and other events are recognised when cash is received or paid.

1.2 Presentation currency

All amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.

1.3 Rounding Unless otherwise stated all financial figures have been rounded to the nearest one thousand Rand (R’000).

1.4 Comparative figures Prior period comparative information has been presented in the current year’s financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format of the current year’s financial statements.

1.5 Comparative figures - Appropriation Statement A comparison between actual amounts and final appropriation per major classification of expenditure is included in the Appropriation Statement.

2. Revenue

2.1 Appropriated funds Appropriated funds comprises of departmental allocations as well as direct charges against revenue fund (i.e. statutory appropriation). Appropriated funds are recognised in the financial records on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the financial records on the date the adjustments become effective.

44



ACCOUNTING POLICIES

For the year ended 31 March 2013 Unexpended appropriated funds are surrendered to the National/Provincial Revenue Fund. Any amounts owing to the National/Provincial Revenue Fund at the end of the financial year are recognised as payable in the statement of financial position. Any amount due from the National/Provincial Revenue Fund at the end of the financial year is recognised as a receivable in the statement of financial position.

2.2 Departmental revenue All departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise. Any amount owing to the National/Provincial Revenue Fund is recognised as a payable in the statement of financial position. No accrual is made for amounts receivable from the last receipt date to the end of the reporting period. These amounts are however disclosed in the disclosure note to the annual financial statements.

2.3 Direct Exchequer receipts All direct exchequer receipts are recognised in the statement of financial performance when the cash is received and is subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise. Any amount owing to the National/Provincial Revenue Funds at the end of the financial year is recognised as a payable in the statement of financial position.

2.4 Direct Exchequer payments All direct exchequer payments are recognised in the statement of financial performance when final authorisation for payment is effected on the system (by no later than 31 March of each year).

2.5 Aid assistance Aids assistance is recognised as revenue when received All in-kind aid assistance is disclosed at fair value on the date of receipt in the annexures to the Annual Financial Statements The cash payments made during the year relating to aid assistance projects are recognised as expenditure in the statement of financial performance when final authorisation for payments is effected on the system (by no later than 31 March of each year) The value of the assistance expensed prior to the receipt of funds is recognised as a receivable in the statement of financial position. Inappropriately expensed amounts using aid assistance and any unutilised amounts are recognised as payables in the statement of financial position.

45



VOTE 10

ACCOUNTING POLICIES For the year ended 31 March 2013

All CARA funds received must be recorded as revenue when funds are received. The cash payments made during the year relating to CARA earmarked projects are recognised as expenditure in the statement of financial performance when final authorisation for payments effected on the system (by no later than 31 March of each year) Inappropriately expensed amounts using CARA funds are recognised as payables in the statement of financial position. Any unutilised amounts are transferred to retained funds as they are not surrendered to the revenue fund.

3. Expenditure

3.1 Compensation of employees 3.1.2 Salaries and wages

Salaries and wages are expensed in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). Other employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements at its face value and are not recognised in the statement of financial performance or position. Employee costs are capitalised to the cost of a capital project when an employee spends more than 50% of his/her time on the project. These payments form part of expenditure for capital assets in the statement of financial performance.

3.1.2 Social contributions Employer contributions to post employment benefit plans in respect of current employees are expensed in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). No provision is made for retirement benefits in the financial statements of the department. Any potential liabilities are disclosed in the financial statements of the National Revenue Fund and not in the financial statements of the employer department. Employer contributions made by the department for certain of its ex-employees (such as medical benefits) are classified as transfers to households in the statement of financial performance.

3.2 Goods and services Payments made during the year for goods and/or services are recognised as an expense in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). The expense is classified as capital if the goods and/or services were acquired for a capital project or if the total purchase price exceeds the capitalisation threshold (currently R5, 000).All other expenditures are classified as current. Rental paid for the use of buildings or other fixed structures is classified as goods and services and not as rent on land.

46



VOTE 10


3.3 Interest and rent on land

Interest and rental payments are recognised as an expense in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). This item excludes rental for the use of buildings or other fixed structures. If it is not possible to distinguish between payment for the use of land and the fixed structures on it, the whole amount should be recorded under goods and services.

3.4 Payments for financial assets Debts are written off when identified as irrecoverable. Debts written-off are limited to the amount of savings and/or under spending of appropriated funds. The write off occurs at year-end or when funds are available. No provision is made for irrecoverable amounts but an estimate is included in the disclosure notes to the financial statements amounts. All other losses are recognised when authorisation has been granted for the recognition thereof.

3.5 Transfers and subsidies Transfers and subsidies are recognised as an expense when the final authorisation for payment is effected on the system (by no later than 31 March of each year).

3.6 Unauthorised expenditure

When confirmed unauthorised expenditure is recognised as an asset in the statement of financial position until such time as the expenditure is either approved by the relevant authority, recovered from the responsible person or written off as irrecoverable in the statement of financial performance. Unauthorised expenditure approved with funding is derecognised from the statement of financial position when the unauthorised expenditure is approved and the related funds are received. Where the amount is approved without funding it is recognised as expenditure in the statement of financial performance on the date of approval.

3.7 Fruitless and wasteful expenditure Fruitless and wasteful expenditure is recognised as expenditure in the statement of financial performance according to the nature of the payment and not as a separate line item on the face of the statement. If the expenditure is recoverable it is treated as an asset until it is recovered from the responsible person or written off as irrecoverable in the statement of financial performance.

3.8 Irregular expenditure Irregular expenditure is recognised as expenditure in the statement of financial performance. If the expenditure is not condoned by the relevant authority it is treated as an asset until it is recovered or written off as irrecoverable.

47



ACCOUNTING POLICIES


4. Assets

4.1 Cash and cash equivalents Cash and cash equivalents are carried in the statement of financial position at cost. Bank overdrafts are shown separately on the face of the statement of financial position. For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.

4.2 Other financial assets Other financial assets are carried in the statement of financial position at cost.

4.3 Prepayments and advances Amounts prepaid or advanced are recognised in the statement of financial position when the payments are made and are derecognised as and when the goods/services are received or the funds are utilised. Prepayments and advances outstanding at the end of the year are carried in the statement of financial position at cost.

4.4 Receivables Receivables included in the statement of financial position arise from cash payments made that are recoverable from another party (including departmental employees) and are derecognised upon recovery or write-off. Receivables outstanding at year-end are carried in the statement of financial position at cost plus any accrued interest. Amounts that are potentials irrecoverable are included in the disclosure notes.

4.5 Investments Capitalised investments are shown at cost in the statement of financial position. Investments are tested for an impairment loss whenever events or changes in circumstances indicate that the investment may be impaired. Any impairment loss is included in the disclosure notes.

4.6 Loans Loans are recognised in the statement of financial position when the cash is paid to the beneficiary. Loans that are outstanding at year-end are carried in the statement of financial position at cost plus accrued interest. Amounts that are potentially irrecoverable are included in the disclosure notes.

48



VOTE 10


4.7 Inventory

Inventories that qualify for recognition must be initially reflected at cost. Where inventories are acquired at no cost, or for nominal consideration, their cost shall be their fair value at the date of acquisition. All inventory items at year-end are reflected using the weighted average cost or FIFO cost formula.

4.8 Capital assets

4.8.1 Movable assets Initial recognition A capital asset is recorded in the asset register on receipt of the item at cost. Cost of an asset is defined as the total cost of acquisition. Where the cost cannot be determined accurately, the movable capital asset is stated at fair value. Where fair value cannot be determined, the capital asset is included in the asset register at R1. All assets acquired prior to 1 April 2002 are included in the register R1. Subsequent recognition Subsequent expenditure of a capital nature is recorded in the statement of financial performance as “expenditure for capital assets” and is capitalised in the asset register of the department on completion of the project. Repairs and maintenance is expensed as current “goods and services” in the statement of financial performance.

4.8.2 Immovable assets Initial recognition A capital asset is recorded on receipt of the item at cost. Cost of an asset is defined as the total cost of acquisition. Where the cost cannot be determined accurately, the immovable capital asset is stated at R1 unless the fair value for the asset has been reliably estimated. Subsequent recognition Work-in-progress of a capital nature is recorded in the statement of financial performance as “expenditure for capital assets”. On completion, the total cost of the project is included in the asset register of the department that is accountable for the asset. Repairs and maintenance is expensed as current “goods and services” in the statement of financial performance.

5. Liabilities

5.1 Payables Recognised payables mainly comprise of amounts owing to other governmental entities. These payables are carried at cost in the statement of financial position.

49



VOTE 10


5.2 Contingent liabilities

Contingent liabilities are included in the disclosure notes to the financial statements when it is possible that economic benefits will flow from the department, or when an outflow of economic benefits or service potential is probable but cannot be measured reliably.

5.3 Contingent assets

Contingent assets are included in the disclosure notes to the financial statements when it is probable that an inflow of economic benefits will flow to the entity.

5.4 Commitments Commitments are not recognised in the statement of financial position as a liability or as expenditure in the statement of financial performance but are included in the disclosure notes.

5.5 Accruals Accruals are not recognised in the statement of financial position as a liability or as expenditure in the statement of financial performance but are included in the disclosure notes.

5.6 Employee benefits Short-term employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements. These amounts are not recognised in the statement of financial performance or the statement of financial position.

5.7 Lease commitments Finance lease Finance leases are not recognised as assets and liabilities in the statement of financial position. Finance lease payments are recognised as an expense in the statement of financial performance and are apportioned between the capital and interest portions. The finance lease liability is disclosed in the disclosure notes to the financial statements. Operating lease Operating lease payments are recognised as an expense in the statement of financial performance. The operating lease commitments are disclosed in the discloser notes to the financial statement.

5.8 Impairment and other provisions The department tests for impairment where there is an indication that a receivable, loan or investment may be impaired. An assessment of whether there is an indication of possible impairment is done at each reporting date. An estimate is made for doubtful loans and receivables based on a review of all outstanding amounts at year-end. Impairments on investments are calculated as being the difference between the carrying amount and the present value of the expected future cash flows / service potential flowing from the instrument.

50



VOTE 10


Provisions are disclosed when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the obligation can be made.

6. Receivables for departmental revenue Receivables for departmental revenue are disclosed in the disclosure notes to the annual financial statements.

7. Net Assets

7.1 Capitalisation reserve The capitalisation reserve comprises of financial assets and/or liabilities originating in a prior reporting period but which are recognised in the statement of financial position for the first time in the current reporting period. Amounts are recognised in the capitalisation reserves when identified in the current period and are transferred to the National/Provincial Revenue Fund when the underlining asset is disposed and the related funds are received.

7.2 Recoverable revenue Amounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off.

8. Related party transactions Specific information with regards to related party transactions is included in the disclosure notes.

9. Key management personnel Compensation paid to key management personnel including their family members where relevant, is included in the disclosure notes.

10. Public private partnerships A description of the PPP arrangement, the contract fees and current and capital expenditure relating to the PPP arrangement is included in the disclosure notes.

51


VOTE 10

NOTES TO THE ANNUAL FINANCIAL STATEMENTS For the year ended 31 March 2013

1. Annual Appropriation

1.1 Annual Appropriation

Included are funds appropriated in terms of the Appropriation Act for National Departments (Voted funds) and Provincial Departments:

Programmes

Final

Appropriation

Actual Funds

Received

Funds not

requested/

not received

Appropriation

received

2011/12

R’000 R’000 R’000 R’000

Support services: His Majesty The King 35,421 35,421 - 37,475

Royal Household Planning & Development 26,085 26,085 - 19,629

His Majesty The King’s Farms 3,855 3,855 - 3,539

Total 65,361 65,361 - 60,643


NOTES TO THE ANNUAL FINANCIAL STATEMENTS


52

2012/13

2011/12

Note R'000

R'000

2 Departmental Revenue

Sales of goods and services other than capital assets 2.1 96

104

Sales of capital assets

2.2 -

-

Transactions in financial assets and liabilities

2.3 3

50

Total revenue collected

99

154

Less: Own revenue included in appropriation

Departmental revenue collected

99

154

2.1 Sales of goods and services other than capital assets

Sales of goods and services produced by the department

96

104

Administrative fees

34

32

Other sales

62

72

Total

96

104

2.2 Sales of capital assets

Tangible assets

-

-


-

-

Total

-

-

2.3 Transactions in financial assets and liabilities

Stale cheques written back

-

50

Other Receipts including Recoverable Revenue

3

-

Total

3

50




53

2012/13

2011/12

Note R'000

R'000

3 Compensation of Employees

3.1 Salaries and wages

Basic salary

13,810

12,735

Service based

1,217

1,071

Compensative/circumstantial

972

489

Other non-pensionable allowances

2,937

3,479

Total

18,936

17,774

3.2 Social Contributions

Employer contributions

Pension

1,780

1,683

Medical

670

628

Bargaining council

8

8

Total

2,458

2,319

Total compensation of employees

21,394

20,093

138

142

Average number of employees

138

142




54

2012/13

2011/12

Note R'000

R'000

4 Goods and services

Advertising

21

46

Assets less than R5,000

4.1 14

59

Catering

307

120

Communication

929

1,239

Computer services

4.2 107

166

Consultants, contractors and agency/outsourced services 4.3 623

3,595

Entertainment

374

969

Audit cost – external

4.4 1,411

1,909

Inventory

4.5 1,866

3,838

Operating leases

251

260

Owned and leasehold property expenditure

4.6 820

1,083

Travel and subsistence

4.7 4,415

6,070

Training and staff development

-

44

Other operating expenditure

4.8 2,378

1,595

Total

13,516

20,993




55

2012/13

2011/12

R'000

R'000

4.1 Assets less than R5,000

Tangible assets

14

59


14

59

Total

14

59

4.2 Computer services

SITA computer services

107

166

Total

107

166

4.3 Consultants, contractors and agency/outsourced services

Business and advisory services

120

1,705

Infrastructure and planning

370

764

Contractors

133

1,126

Total

623

3,595

4.4 Audit cost – external

Regularity audits

1,411

1,909

Total

1,411

1,909




56

2012/13

2011/12

R'000

R'000

4.5 Inventory

Food and food supplies

624

1,576

Fuel, oil and gas

27

1,031

Other consumable materials

775

502

Maintenance material

313

212

Stationery and printing

127

517

Total

1,866

3,838

4.6 Owned and leasehold property expenditure

Municipal services

545

859

Property maintenance and repairs

275

224

Total

820

1,083

4.7 Travel and subsistence

Local

4,399

6,053

Foreign

16

17

Total

4,415

6,070




57

2012/13

2011/12

Note R'000

R'000

4.8 Other operating expenditure

Resettlement costs

26

-

Other

2,352

1,595

Total

2,378

1,595

5 Payments for financial assets

Other material losses written off 5.1 1,800

3,767

Debts written off 5.2 168

-

Total 1,968

3,767

5.1 Other material losses written off 1,800

3,767

First charge against the vote

1,800

3,767

5.2 Debts written off 168

-

Suspense accounts with old balances 168

-

6 Transfers and Subsidies

Departmental agencies and accounts

10,528

11,300

Households

606

224

Total

11,134

11,524




58

2012/13

2011/12

Note R'000

R'000

7 Expenditure for capital assets

Tangible assets

13,355

3,032


12,715

2,527


21.1 640

505

Total

13,355

3,032

7.1 Analysis of funds utilised to acquire capital assets - 2012/13

Voted Funds Aid

assistance

TOTAL

R'000 R'000

R'000

Tangible assets

13,355

13,355


12,715 -

12,715


640 -

640

Total

13,355 -

13,355




59

7.2 Analysis of funds utilised to acquire capital assets – 2011/12

Voted Funds

Aid assistance

TOTAL

R'000 R'000

R'000

Tangible assets

3,032 -

3,032


2,527 -

2,527


505 -

505

Total

3,032 -

3,032

2012/13

2011/12

8 Unauthorised Expenditure

Note R'000

R'000

8.1 Reconciliation of unauthorised expenditure

Opening balance

13,084

10,761

Unauthorised expenditure - discovered in the current year -

5,740

Less: First charge against the vote

(1,800)

(3,767)

Add: Adjustment for prior years misallocation

-

350

Unauthorised expenditure awaiting write off

11,284

13,084

Analysis of awaiting write off per economic classification

Current 11,284

13,084




60

Analysis of unauthorised expenditure awaiting authorisation per type 2012/13

2011/12

Unauthorised expenditure relating to overspending of the vote or a main division

within the vote 11,284

13,084

Total

11,284

13,084

Details of unauthorised expenditure - current year

Incident Disciplinary steps taken/criminal proceedings

None None -

5,740

Total

-

5,740




61

Included in unauthorised expenditure is an amount of R 9,694,000-00, which has been approved by SCOPA without

funding as a first charge against the department’s budget in future years, as follows:

2013/14 financial year - R 2,500,000-00

2014/15 financial year - R 2,500,000-00

2015/16 financial year - R 4,694,000-00

Less than one year

One to three years

Older than three years Total

2011/12

R’000 R’000 R’000 R’000

R’000

9 Receivables

Claims recoverable

9.1 1,569 3,939 110 5,618 4,077

Staff debt

9.2 - 12 - 12 13

Other debtors

9.3 28 2 - 30 193

Total

1,597 3,953 110 5,660

4,283



62

2012/13

2011/12

Note R'000

R'000

9.1 Claims recoverable

Provincial departments

Annex 4 2,999

1,727

Public entities

Annex 4 2,619

2,350

Total

5,618

4,077

9.2 Staff debt

Less than 1 year

12

12

More than 3 years

-

1

Total

12

13

9.3 Other debtors

Sal: Tax debts

2

31

Sal: Deduction disallowance a/c: CA

-

13

Sal: Reversal control account: CA

-

139

Sal: Medical aid: CL

-

6

Sal: Income tax: CL

-

2

Double payment for queen’s medical expenses

2

2

Gama NN – salary paid after termination

20

-

Mavimbela – salary paid after termination

6

-

Total

30

193


VOTE 10


63

2012/13

2011/12

R'000

R'000 10 Voted Funds to be Surrendered to the Revenue Fund

Opening balance

6,984

10

Transfer from statement of financial performance

3,994

1,234

Add: Unauthorised expenditure for current year

-

5,740

Paid during the year

(6,984)

-

Closing balance

3,994

6,984

11 Departmental revenue to be surrendered to the Revenue Fund

Opening balance

(200)

(90)

Refund from Revenue fund

200

-

Transfer from Statement of Financial Performance

99

154

Paid during the year

(88)

(264)

Closing balance

11

(200)

12 Bank Overdraft

Consolidated Paymaster General Account

12,329

10,004

Total

12,329

10,004




64

2012/13

2011/12

Note R'000

R'000

13 Payables – current

Amounts owing to other entities

Annex 5 300

300

Clearing accounts

13.1 199

144

Other payables

13.2 111

134

Total

610

578

13.1 Clearing accounts

Sal: ACB recalls:CL

150

123

Pension recoverable account

44

21

Salary reversal control account

5

-

Total

199

144

13.2 Other payables

Unallocated credits

-

28

S&W non pensionable allowances

53

53

Leave gratuity payments

53

53

Over deduction from employee – N Sithole

5

-

Total

111

134


VOTE 10


65

2012/13

2011/12

Note R'000

R'000

14 Net cash flow available from operating activities

Net surplus as per Statement of Financial Performance

4,093

1,388

Add back non cash/cash movements not deemed operating activities 6,938

4,909

(Increase) in receivables – current

(1,377)

(1,406)

Decrease in other current assets

1,800

3,417

Increase in payables – current

32

130

Expenditure on capital assets

13,355

3,032

Surrenders to Revenue Fund

(6,872)

(264)

Net cash flow generated by operating activities

11,031

6,297

15 Reconciliation of cash and cash equivalents for cash flow purposes

Consolidated Paymaster General account

(12,329)

(10,004)

Total

(12,329)

(10,004)


VOTE 10

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS For the year ended 31 March 2013

66

2012/13

2011/12

Note R'000

R'000

16 Contingent liabilities

Liable to

Nature

Other departments Interdepartmental unconfirmed balances Annex 5 1,843

1,378

Total

1,843

1,378

17 Commitments

Current expenditure

2,273

-

Approved and contracted

2,273

-

Capital expenditure

3,010

-

Approved and contracted

3,010

-

Total Commitments

5,283

-

18 Accruals

Listed by economic classification 30 days 30+ days Total

Total

Goods and services

999 484 1,483

673

Capital assets

147 - 147

474

Total 1,146 484 1,630

1,147

Listed by programme level

Programme 1

1,194

596

Programme 2

401

551

Programme 3

35

-

Total

1,630

1,147


VOTE 10

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS For the year ended 31 March 2013

67

2012/13

2011/12

Note R'000

R'000

Confirmed balances with departments

Annex 5 1,366

300

Total

1,366

300

19 Employee benefits

Leave entitlement

1,462

1,365

Thirteenth cheque

586

536

Capped leave commitments

4,361

4,431

Total

6,409

6,332


DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS


68

20 Lease commitments

20.1 Operating leases expenditure

Land

Buildings and other

fixed structures

Machinery and

equipment

Total 2012/13

R’000

Total 2011/12

R’000

Not later than 1 year - - 28 28

82

Later than 1 year and not later than 5 years - - 19 19

10

Total lease commitments

- - 47 47

92

20.2 Finance leases expenditure **

Land

Buildings and other

fixed structures

Machinery and

equipment

Total 2012/13

R’000

Total 2011/12

R’000

Not later than 1 year

- - 327 327

262

Later than 1 year and not later than 5 years - 96 96

51

Total lease commitments

- - 423 423

313

LESS: finance costs

- - -

-

Total present value of lease liabilities - - 423 423

313

** This note excludes leases relating to public private partnerships.




69

2012/13

2011/12

R'000

R'000

21 Irregular expenditure

21.1 Reconciliation of irregular expenditure

Opening balance

1,999

-

Add: Irregular expenditure – relating to current year

3,079

1,999

Irregular expenditure awaiting condonation

5,078

1,999

Analysis of awaiting condonation per age classification

Current

3,079

1,999

Prior years

1,999

-

Total

5,078

1,999

Provincial Treasury embarked on an exercise to reconcile the disclosures with the departmental registers and to investigate each case with the

responsible departments.

Provincial Treasury consulted and assisted departments in verifying the amounts involved and the circumstances prevailing at the time of the

transgression. The payments were individually evaluated and recommended for condonement by a committee consisting of the Acting Accountant

General and representatives of the Supply Chain Management and the Internal Audit units at Provincial Treasury. Where the information was

insufficient to make recommendation the case was referred back departments for further investigation. Cases that are under forensic or other

investigations were not considered at this stage pending the outcome of such investigations

In evaluating each case the Provincial Treasury considered the following:

(a) the circumstances of the transgression;

(b) the extent of the expenditure involved;

(c) the nature and seriousness of the transgression;

(d) outstanding investigations or court proceedings;




70

(e) the effect of compliance on service delivery;

(f) whether the service was provided and a check on value for money;

(g) the potential cost involved in further investigations into old cases;

(h) steps taken by departments to rectify the matters;

(i) the extent of possible misinterpretation of the prescript; and

(j) the practical challenges to adhere to all the prescripts.

21.2 Details of irregular expenditure


Procurement of goods and services without obtaining 3 quotes None 1,613

1,808

Transacting with suppliers who did not sign SBD4 form None 1,466

191

Total

3,079

1,999

21.3 Details of irregular expenditure under investigation

Incident

Disciplinary steps taken/criminal proceedings

Cases which are under investigation by Internal Audit – Provincial Treasury

None 5,078

-

Total

5,078

-




71

2012/13

2011/12

R'000

R'000 22 Fruitless and wasteful expenditure

22.1 Reconciliation of fruitless and wasteful expenditure

Opening balance

-

-

Fruitless and wasteful expenditure – relating to prior year

-

-

Fruitless and wasteful expenditure – relating to current year

4

-

Less: Amounts condoned

-

-

Less: Amounts transferred to receivables for recovery

-

-

Fruitless and wasteful expenditure awaiting condonement

4

-

Analysis of awaiting condonement per economic classification

Current

4

-

Capital

-

-


-

-

Total

4

-

22.2 Analysis of current year’s fruitless and wasteful expenditure


Interest incurred on late payment of First Auto accounts None 4

-

Total

4

-




72

2012/13

2011/12

R'000

R'000

R'000

R'000 23 Key management personnel

No. of Individuals

Level 14 (CFO )

1 736

693

Level 15 (AO)

1 -

796

Total

736

1,489

Note

The salary for the MEC and the Acting Accounting Officer of the Department of the Royal Household is budgeted for under Vote 1: Office of the Premier.




73

24 Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Opening balance

Current year

adjustments to prior year balances Additions Disposals

Closing balance

R'000 R'000 R'000 R'000

R'000

MACHINERY AND EQUIPMENT 12,252 - 1,245 192

13,305

Transport assets

8,764 - 1,061 - 10,281

Computer equipment

441 - 75 94 422

Furniture and office equipment 280 - - - 280

Other machinery and equipment 2,311 - 109 98 2,322

BIOLOGICAL ASSETS 84 - - - 84

Biological assets 84 - - - 84

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

12,252 - 1,245 192

13,389




74

24.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Cash Non-cash

(Capital work-in-progress current

costs and finance lease payments)

Received current, not paid (Paid current year,

received prior year

Total

R'000 R'000 R'000 R'000

R'000

MACHINERY AND EQUIPMENT 640 - - 605

1,245

Transport assets 456 - - 605

1,061

Computer equipment 75 - - -

75

Other machinery and equipment 109 - - -

109

BIOLOGICAL ASSETS - - - -

-

Biological assets - - - -

-

TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS

640 - - 605

1,245




75

24.2

Disposals

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Sold for Cash

Transfer out or destroyed or

scrapped Total disposals

Cash received actual

R'000 R'000 R'000

R'000

MACHINERY AND EQUIPMENT - 192 192

-

Transport assets

- - -

-

Computer equipment

- 94 94

-

Furniture and office equipment - - -

-

Other machinery and equipment - 98 98

-

TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS

- 192 192

-




76

24.3 Movement for 2011/12

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012

Opening balance Additions Disposals

Closing balance

R'000 R'000 R'000

R'000

MACHINERY AND EQUIPMENT

11,291 961 -

12,252

Transport assets

8,764 456 -

9,220

Computer equipment

441 - -

441

Furniture and office equipment

44 236 -

280

Other machinery and equipment

2,042 269 -

2,311

BIOLOGICAL ASSETS 84 -

84

Biological assets

84 - -

84

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

11,375 961 -

12,336




77

24.4 Minor assets

MINOR ASSETS OF THE DEPARTMENT AS AT 31 MARCH 2013

Intangible assets Heritage assets

Machinery and equipment Biological assets

Total

R'000 R'000 R'000 R'000

R'000

Opening balance

- - 362 -

362

Current year adjustments to prior year balances - - - -

-

Additions

- - 14 -

14

Disposals

- - 48 -

48

TOTAL

- - 328 -

328



Total

Number of R1 minor assets - - 708 -

708

Number of minor assets at cost -

133 -

133

-

TOTAL

- - 841 -

841




78

24.5 Minor assets

MINOR ASSETS OF THE DEPARTMENT AS AT 31 MARCH 2012



Total

R'000 R'000 R'000 R'000

R'000

Opening balance

- - 319 -

319

Current year adjustments to prior year balances - -

-

Additions

- - 43 -

43

Disposals

- - - -

-

TOTAL

- - 362 -

362



Total

Number of R1 minor assets - - 750 -

750

Number of minor assets at cost - - 155 -

155

TOTAL

- - 905 -

905


ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS


79

ANNEXURE 1A

STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS

TRANSFER ALLOCATION EXPENDITURE 2011/12

DEPARTMENT/AGENCY/ ACCOUNT

Adjusted appropriation

Act Roll Overs Adjustments Total Available Actual Transfer

% of Available funds

transferred

Appropriation Act

R'000 R'000 R'000 R'000 R'000 % R'000

Royal Household Trust

Department of Transport

10,800

8

-

-

-

-

10,800

8

10,500

28

97%

350%

11,300

-

Total 10,808 - - 10,808 10,528

11,300




80

ANNEXURE 1B

STATEMENT OF TRANSFERS TO HOUSEHOLDS

TRANSFER ALLOCATION EXPENDITURE 2011/12

HOUSEHOLDS Adjusted

appropriation Act Roll Overs Adjustments Total Available Actual Transfer

% of Available funds

transferred

Appropriation Act

R'000 R'000 R'000 R'000 R'000 % R'000

Leave gratuity 313 - - 313 606 194% 224

Total 313 - - 313 606

224




81

ANNEXURE 2

STATEMENT OF FINANCIAL GUARANTEES

GUARANTOR INSTITUTION

Guarantee in respect of

Original guaranteed

capital amount

Opening balance

1 April 2012

Guarantees draw downs

during the year

Guaranteed repayments/

cancelled/ reduced/ released

during the year

Revaluations

Closing balance

31 March 2013

Guaranteed interest for year ended

31 March 2013

Realised losses not

recoverable i.e. claims

paid out

R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000

Ithala Limited Housing loan - - - - - - - -

Standard Bank Housing loan - - - - - - - -

Total

- - - - - - - -


VOTE 10

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS For the year ended 31 March 2013

82

ANNEXURE 3

STATEMENT OF CONTINGENT LIABILITIES

Nature of liability

Opening balance 1 April 2012

Liabilities incurred during the year

Liabilities paid/ cancelled/ reduced

during the year

Liabilities recoverable

Closing balance 31 March 2013

R'000 R'000 R'000 R'000 R'000

Claims against the department - - - - -

Total - - - - -




83

ANNEXURE 4

CLAIMS RECOVERABLE

Confirmed balance outstanding Unconfirmed balance outstanding Total

GOVERNMENT ENTITY 31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012

R'000 R'000 R'000 R'000 R'000 R'000

Department

KZN Office of the Premier - - 1,249 1,249 1,249 1,249

KZN Provincial Treasury - - 1,750 478 1,750 478

Subtotal - - 2,999 1,727 2,999 1,727

Other Government Entities

Royal Household Trust - - 2,619 2,350 2,619 2,350

Subtotal - - 2,619 2,350 2,619 2,350

Total - - 5,618 4,077 5,618 4,077




84

ANNEXURE 5

INTER-GOVERNMENT PAYABLES

Confirmed balance outstanding Unconfirmed balance outstanding Total

GOVERNMENT ENTITY 31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012

R'000 R'000 R'000 R'000 R'000 R'000

DEPARTMENTS

Current

KZN Department of Transport 1,066 461 1,398 944 2,464 1,405

KZN Office of the Premier 300 300 - - 300 300

Subtotal 1,366 761 1,398 944 2,764 1,705

Non-current KZN Department of Works - - 145 217 145 217

Subtotal - - 145 217 145 217

Total 1,366 761 1,543 1,161 2,909 1,922

OTHER GOVERNMENT ENTITY

Current

Royal Household Trust - - 300 700 300 700

Subtotal - - 300 700 300 700

Total 1,366 761 1,843 1,861 3,209 2,622




85

ANNEXURE 6

INVENTORY

Inventory Quantity 2012/13 R’000

Quantity 2011/12 R’000

Opening balance - - - - Add/(Less): Adjustments to prior year balances

- -

- -

Add: Additions/Purchases – Cash - 1,866 - 3,838 Add: Additions – Non-Cash - - - - (Less): Disposals - - - - (Less): Issues - (1,866) - (3,838) Add/(Less): Adjustments - - - - Closing balance - - - -

86





ANNEXURE 7 IMMOVABLE ASSETS Movements to immovable assets – 2012/13

The department has applied the exemption as granted by National Treasury and thus where there is uncertainty with regard to ownership of immovable assets these have not been disclosed on the face of the annual financial statements. Additions

The additions for the current year were R 12,715,000-00 (2011/12 – R 2,527,000-00). Disposals

The disposals for the current year were nil (2011/12 – nil). Supplementary information

The supplementary information presented does not form part of the annual financial statements and is un-audited.

87


HUMAN RESOURCES

PART 5

88


1. Expenditure

The following tables provide a summary per programme (Table 1.1) and salary bands (Table

1.2), of expenditure incurred as a result of salaries, overtime, home owners allowance and

medical assistance. In each case, the table provides an indication of the percentage of the

personnel budget that was used for these items.

Table 1.1 - Personnel costs by programme, 2012/13

Programme

Total

Expenditure

(R’000)

Personnel

Expenditure

(R’000)

Training

Expenditure

(R’000)

Professional

and Special

Services

(R’000)

Personnel

cost as a

percent of

total

expenditure

Average

personnel

cost per

employee

(R’000)

Programme 1 34,421 10,151 - - 29,5 70

Programme 2 24,393 9,816 - - 40,2 74

Programme 3 2,553 1,427 - - 55,9 11

Total 61,367 21,394 - - 34,8 155

Table 1.2 – Personnel costs by salary bands, 2012/13

Salary bands Personnel

Expenditure (R’000)

% of total personnel

cost

Average personnel

cost per employee

(R’000)

Number of

employees

Lower skilled (Levels 1-2) 8,613 40,3 106 81

Skilled (Levels 3-5) 5,733 26,8 143 40

Highly skilled production

(Levels 6-8) 1,837 8,6 262 7

Highly skilled supervision

(Levels 9-12) 3,375 15,8 482 7

Senior management

(Levels 13-16) 736 3,4 736 1

Contract (Levels 13-16) - - - -

Abnormal Appointments 1,100 5,1 550 2

Total 21,394 100.0 155 138

89


2. Employment and vacancies

The following tables summarise the number of posts on the establishment, the number of

employees, the vacancy rate, and whether there are any staff that are additional to the

establishment. This information is presented in terms of three key variables: - programme

(Table 2.1), salary band (Table 2.2) and critical occupations.

The vacancy rate reflects the percentage of posts that are not filled.

Table 2.1 – Employment and vacancies by programme, 31 March 2013

Programme Number of posts Number of posts

filled Vacancy Rate

Number of posts

filled additional to

the establishment

Programme 1 52 37 28,8 -

Programme 2 113 93 17,7 -

Programme 3 10 8 20 -

Total 175 138 21,1 -

Table 2.2 – Employment and vacancies by salary bands, 31 March 2013

Salary band Number of posts Number of posts

filled Vacancy Rate

Number of posts

filled additional to

the establishment

Lower skilled

(Levels 1-2) 98 81 17,3 -

Skilled

(Levels 3-5) 47 40 14,9 -

Highly skilled

production

(Levels 6-8)

14 7 50 -

Highly skilled

supervision

(Levels 9-12)

14 7 50 -

Senior management

(Levels 13-16) 2 1 50 -

Contract

(Levels 13-16) - - - -

Abnormal

Appointments - 2 - -

Total 175 138 22.3 -

90


3. Job evaluation

The Public Service Regulations, 1999, introduced job evaluation as a way of ensuring that work

of equal value is remunerated equally. Within a nationally determined framework, Executing

Authorities may evaluate or re-evaluate any job in their departments. In terms of the

Regulations, all vacancies on salary levels 9 and higher must be evaluated before they are

filled. This was complemented by a decision by the Minister for the Public Service and

Administration that all SMS jobs must be evaluated before 31 December 2002.

The following table (Table 3.1) summarises the number of jobs that were evaluated during the

year under review. The table also provides statistics on the number of posts that were

upgraded or downgraded.

Table 3.1 – Job Evaluation, 1 April 2012 to 31 March 2013

Salary band Number of

posts

Number of

Jobs

Evaluated

% of posts

evaluated

by salary

bands

Posts Upgraded Posts downgraded

Number % of posts

evaluated Number

% of

posts

evaluated

Lower skilled

(Levels 1-2) 98 - - - - - -

Contract

(Band C) - - - - - - -

Skilled

(Levels 3-5) 47 1 2,1 - - - -

Highly skilled

production

(Levels 6-8)

14 - - - - - -

Highly skilled

supervision

(Levels 9-12)

14 - - - - - -

Senior

Management

Service Band A

1 - - - - - -

Senior

Management

Service Band C

1 - - - - - -

Total 175 1 0,6 - - - -

The following table (Table 3.2) provides a summary of the number of employees whose salary

positions were upgraded due to their posts being upgraded. The number of employees might

differ from the number of posts upgraded since not all employees are automatically absorbed

into the new posts and some of the posts upgraded could also be vacant.

Table 3.2 – Profile of employees whose salary positions were upgraded due to their posts

being upgraded, 1 April 2012 to 31 March 2013

Beneficiaries African Asian Coloured White Total

Female - - - - -

Male - - - - -

Total - - - - -

Employees with a disability - - - - -

91


4. Employment changes

This section provides information on changes in employment over the financial year.

Turnover rates provide an indication of trends in the employment profile of the department. The

following tables provide a summary of turnover rates by salary band (Table 4.1) and by critical

occupations (Table 4.2). Tables 4.3 and 4.4 provide details on promotions in the department

whilst table 4.5 provides an indication of why officials are leaving the department

Table 4.1 – Annual turnover rates by salary band for the period 1 April 2012 to

31 March 2013

Salary Band

Number of

employees per band

as on 1 April 2012

Appointments and

transfers into the

department

Terminations and

transfers out of the

department

Turnover rate

Lower skilled

(Levels 1-2) 92 8 6 6,5

Skilled (Levels 3-5) 28 1 3 10,7

Highly skilled

production(Levels 6-8) 8 - - -

Highly skilled

supervision

(Levels 9-12)

8 - 2 25

Senior Management

Service Band A 1 - - -

Senior Management

Service Band C - - 1 -

Contract Band C 1 - - 100

Total 138 9 12 8,7

92


Table 4.2 – Annual turnover rates by critical occupation for the period 1 April 2012 to 31 March 2013

Occupation

Number of

employees per

occupation as on 1

April 2012

Appointments and

transfers into the

department

Terminations and

transfers out of the

department

Turnover rate

Administrative Related 4 - - -

Agriculture Related 2 - - -

Building and other

property caretakers 12 - 3 25

Bus and heavy

vehicles drivers 7 1 - -

Cleaners in offices

workshop hospital etc 54 7 3 5,6

Farm hands and

labourers 17 1 2 11,8

Financial and related

professionals 2 - 1 50

Financial clerks and

credit controllers 3 - - -

Food services aids

and waters 1 - - -

Housekeepers laundry

and related workers 1 - - -

Human resources

clerk 4 - - -

Light vehicle drivers 2 - - -

Messengers, porters

and deliverers 1 - - -

Other administrative

and related clerk and

organisers

3 - 1 33,3

Other occupations 1 - - -

Secretaries and other

keyboard operating

clerk

2 - - -

Security guards 20 - 1 5

Senior managers 2 - 1 50

138 9 12 8,7

93


Table 4.3 – Promotions by critical occupation

Occupation Employees as at

1 April 2012

Promotions to

another salary

level

Salary level

promotions as a

% of employees

by occupation

Progressions to

another notch

within a salary

level

Notch

progressions as

a % of

employees by

occupation

Administrative

Related 4 - - 2 50

Agriculture

Related 2 - - 1 50

Building and other

property

caretakers

12 - - 11 91,7

Bus and heavy

vehicles drivers 7 1 14,3 - -

Cleaners in

offices workshop

hospital etc

54 1 1,9 39

72,2

Farm hands and

labourers 17 - - 14 82,4

Financial and

related

professionals

2 - - 1 50

Financial clerks

and credit

controllers

3 - - 1 33.3

Food services

aids and waters 1 - - - -

Housekeepers

laundry and

related workers

1 - - -

Human resources

clerk 4 - - 1 25

Light vehicle

drivers 2 - - - -

Messengers,

porters and

deliverers

1 - - - -

Other

administrative and

related clerk and

organisers

3 - - - -

Other occupations 1 - - 1 100

Secretaries and

other keyboard

operating clerk

2 - - - -

Security guards 20 - - 16 80

Senior managers 2 - - - -

Total 138 2 1,4 87 63

94


Table 4.4 – Promotions by salary band

Salary Band Employees 1

April 2012

Promotions to

another salary

level

Salary bands

promotions as a

% of employees

by salary level

Progressions to

another notch

within a salary

level

Notch

progressions as

a % of

employees by

salary band

Lower skilled

(Levels 1-2) 92 - - 62 67,4

Skilled

(Levels 3-5) 28 2 7,1 21 75

Highly skilled

production

(Levels 6-8)

8 - - 2 25

Highly skilled

supervision

(Levels9-12)

8 - - 2 25

Senior

management

(Levels13-16)

1 - - - -

Contract

(Levels 13-16) 1 - - - -

Total 138 2 1,4 87 63

5.

Table 4.5 – Reasons why officials are leaving the department

Termination Type Number % of total

Death 2 1.4

Resignation 1 0,7

Discharged due to ill-health - -

Retirement 9 6,5

Total 11 8,7

Total number of employees who left as a % of the total employment () 8,7

95


5. Employment equity

The tables in this section are based on the formats prescribed by the Employment Equity Act,

55 of 1998.

Table 5.1 – Total number of employees (including employees with disabilities) in each of

the following occupational categories as on 31 March 2013

Occupational

categories

(SASCO)

Male Female Total

African Coloured Indian White African Coloured Indian White

Legislators, senior

officials and

managers

1 - - - - - - - 1

Professionals 3 - - - - - - - 3

Technicians and

associate

professionals

3 - - - 1 - - - 1

Clerks 3 - - - 7 - - - 10

Service and sales

workers 19 - - - 1 - - - 20

Skilled agriculture

and fishery

workers

- - - - - - - - -

Craft and related

trades workers - - - - - - - - -

Plant and machine

operators and

assemblers

11 - - - - - - - 11

Elementary

occupations 31 - - - 55 - - - 86

Total 71 - - - 64 - - - 135

Employees with

disabilities - - - - - - - - -

96


Table 5.2 – Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2013

Occupational

Bands

Male Female

African Coloured Indian White African Coloured Indian White Total

Top Management

Senior

Management 1 - - - - - - - 1

Professionally

qualified and

experienced

specialists and

mid-management

6 - - - 1 - - - 7

Skilled technical

and academically

qualified workers,

junior

management,

supervisors,

foreman and

superintendents

2 - - - 4 - - - 6

Semi-skilled and

discretionary

decision making

22 - - - 18 - - - 40

Unskilled and

defined decision

making

40 - - - 41 - - - 81

Contract (Top

Management) - - - - - - - -

Total 71 0 0 0 64 0 0 0 135

97


Table 5.3 – Recruitment for the period 1 April 2012 to 31 March 2013

Occupational

Bands

Male Female


Top Management - - - - - - - - -

Senior

Management - - - - - - - - -

Professionally

qualified and

experienced

specialists and

mid-management

- - - - - - - - -

Skilled technical

and academically

qualified workers,

junior

management,

supervisors,

foreman and

superintendents

- - - - - - - - -

Semi-skilled and

discretionary

decision making

1 - - - - - - - 1

Unskilled and

defined decision

making

6 - - - 2 - - - 8

Contract (Top

Management) - - - - - - - - -

Total 7 0 0 0 2 0 0 0 9

98


Table 5.4 – Promotions for the period 1 April 2012 to 31 March 2013

Occupational

Bands

Male Female



Senior

Management - - - - - - - -

Professionally

qualified and

experienced

specialists and

mid-management

1 - - - 1 - - - 2

Skilled technical

and academically

qualified workers,

junior

management,

supervisors,

foreman and

superintendents

- - - - 2 - - - 2

Semi-skilled and

discretionary

decision making

8 - - - 15 - - - 23

Unskilled and

defined decision

making

28 - - - 34 - - - 62

Total 37 - - - 52 - - - 89

Employees with


99


Table 5.5 – Terminations for the period 1 April 2012 to 31 March 2013

Occupational

Bands

Male Female



Senior

Management - - - - - - - - -

Professionally

qualified and

experienced

specialists and

mid-management

- - - 1 1 - - - 2

Skilled technical

and academically

qualified workers,

junior

management,

supervisors,

foreman and

superintendents

- - - - - - - - -

Semi-skilled and

discretionary

decision making

1 - - - 2 - - - 3

Unskilled and

defined decision

making

2 - - - 4 - - - 6

Contract (Semi-

skilled) 1 - - - - - - - 1

Total 4 1 7 12

Employees with


Table 5.6 – Disciplinary action for the period 1 April 2012 to 31 March 2013

Disciplinary

action

Male Female


- - - - - - - - - -

100


Table 5.7 – Skills development for the period 1 April 2012 to 31 March 2013

Occupational

categories

Male Female


Legislators,

senior officials

and managers

- - - - - - - - -

Professionals - - - - - - - - -

Technicians and

associate

professionals

- - - - - - - - -

Clerks - - - - - - - - -

Service and sales

workers - - - - - - - - -

Skilled agriculture

and fishery

workers

- - - - - - - - -

Craft and related

trades workers - - - - - - - - -

Plant and

machine

operators and

assemblers

- - - - - - - - -

Elementary

occupations - - - - - - - - -

Total - - - - - - - - -

Employees with


6.

6. Performance rewards

Department officials have not been granted performance rewards during the year under review.

7. Foreign workers

There were no foreign nationals in the employment of the department for the year under review.

101


8. Leave utilisation for the period 1 January 2012 to 31 December 2012

The Public Service Commission identified the need for careful monitoring of sick leave within the

public service. The following tables provide an indication of the use of sick leave (Table 8.1) and

disability leave (Table 8.2). In both cases, the estimated cost of the leave is also provided.

Table 8.1 – Sick leave, 1 January 2012 to 31 December 2012

Salary Band Total days

% days with

medical

certification

Number of

Employees

using sick

leave

% of total

employees

using sick

leave

Average days

per employee

Estimated

Cost (R’000)

Lower skilled

(Levels 1-2) 188 98,4 21 42,9 9 48

Skilled

(Levels 3-5) 161 98,1 16 32,7 10 54

Highly skilled

production

(Levels 6-8)

60 93,3 5 10,2 12 33

Highly skilled

supervision

(Levels9-12)

59 98,3 7 14,3 8

93

Senior

management

(Levels 13-16)

- - - - - -

Contract

(Levels 13-16) - - - - - -

Total 468 97,6 49 100 10 228

Table 8.2 – Disability leave (temporary and permanent), 1 January 2012 to

31 December 2012

Salary Band Total days

taken

% days with

medical

certification

Number of

Employees

using

disability

leave

% of total

employees

using

disability

leave

Average days

per employee

Estimated

Cost (R’000)

Lower skilled

(Levels 1-2) 261 100 6 75 44 67

Skilled (Levels

3-5) 5 100 1 12,5 5 2

Highly skilled

production

(Levels 6-8)

60 100 1 12,5 60 47

Highly skilled

supervision

(Levels 9-12)

- - - - - -

Senior

management

(Levels 13-16)

- - - - - -

Total 326 100 8 100 41 116

102


Table 8.3 summarises the utilisation of annual leave. The wage agreement concluded with trade

unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of

accrued leave being paid at the time of termination of service.

Table 8.3 – Annual Leave, 1 January 2012 to 31 December 2012

Salary Bands Total days taken Average per

employee

Number of employees

who took leave

Lower skilled (Levels 1-2) 1269 23 55

Skilled Levels 3-5) 765 20 38

Highly skilled production (Levels 6-8) 78 13 6

Highly skilled supervision(Levels 9-12) 116 15 8

Senior management (Levels 13-16) 10 10 1

Contract (Levels 13-16) - - -

Total 2238 21 108

Table 8.4 – Capped leave, 1 January 2012 to 31 December 2012

Salary Bands

Total days of

capped leave

taken

Average

number of

days taken per

employee

Average

capped leave

per employee

as at 31

December

2011

Number of

employees

who took

capped leave

Total number

of days of

capped leave

available as at

31 December

2011

Lower skilled (Levels 1-2) - - - - -

Skilled Levels 3-5) - - - - -

Highly skilled production

(Levels 6-8) - - -

- -

Highly skilled

supervision(Levels 9-12) - - - - -

Senior management (Levels

13-16) - - - - -

Total - - - - -

Table 8.5 – Leave payouts for the period 1 April 2012 to 31 March 2013

The following table summarises payments made to employees as a result of leave that was not

taken.

REASON Total Amount

(R’000)

Number of

Employees

Average payment

per employee

(R’000)

Capped leave payouts on termination of service 114 25 4560

Total 114 25 4560

annual report - provincial government of south … · royal household department: royal household...

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