ANNUAL REPORT 2012/2013 FREE STATE LEGISLATURE. Vote 2

Transcription

1 2012/2013 FREE STATE LEGISLATURE ANNUAL REPORT Vote 2 Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer

2 2 Free State Legislature ANNUAL REPORT For the year ending 31 March 2013 Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer

3 Table of Content Section of Annual Report Part A: Strategic Overview 11 Part B: Performance Information 28 Part C: Governance 60 Part D: Human Resource Management 66 Part E: Financial Information 90 General Information Free State Legislature 41 Charlotte Maxeke Street Bloemfontein Private Bag x20561, Bloemfontein Website: Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer

4 Free State Legislature Annual Report 2012/13 Hon MA Tsopo Acting Speaker to the Legislature I have the honour of submitting the Annual Report of the Free State Legislature for the period 1 April 2012 to 31 March TB Phitsane Secretary to the Legislature 31 May 2013 Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer

5 Vote /13 ANNUAL REPORT PART A: STRATEGIC OVERVIEW SECTION ONE : Vision, Mission and Values Strategic Outcome Orientated Goals 10 SECTION SIX: PROGRAMME PERFORMANCE 00 SECTION TWO : LEGISLATIVE MANDATE 11 Programme 1: Administration SECTION THREE: ORGANISATIONAL STRUCTURE 15 Programme 2: Facilities and Benefits to Members and Political Parties Foreword by the speaker 15 Programme 3: Parliamentary Services Report of the Accounting Officer 16 SECTION FOUR: POLITICAL LANDSCAPE 22 PART C: GOVERNANCE OF THE FREE STATE LEGISLATuRE REPORT of the Audit COMMITTEE PART B: PERFOMRANCE INFORMATION 26 SECTION FIVE: PROGRAMME PERFORMANCE INFORMATION 34 PART D: HUMAN RESOURCE MANAGEMENT 4.1 Accounting Officer s Statement of Responsibility for Performance Information 4.2 Voted Funds 4.3 Aim of Vote PART E: FINANCIAL INFORMATION ANNUAL FINANCIAL STATEMENTS 4.4 Strategic Outcome Oriented Goals 4.5 Auditor General s Report: Predetermined Objectives 4.6 Overview of the LEGISLATURE S PERFORMANCE 4.7 Overview of the organizational environment for 2012/ Key policy developments and legislative changes 4.9 Departmental revenue, expenditure and other specific topics 4.10 Departmental expenditure 4.11 Transfer payments 4.12 Capital investment, maintenance and asset management plan Report of the AuditorGeneral Appropriation Statement Notes to the Appropriation Statement Statement of Financial Performance Statement of Financial Position Statement of changes in Net Assets Cash Flow Statement Statement of Accounting Policies and Related Matters Notes to the Annual Financial Statements (including Accounting Policies) Disclosure notes to the Annual Financial Statements Annexures (Unaudited supplementary schedules) Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer

6 1 2 SECTION ONE SECTION TWO 10 A 11 STRATEGIC OVERVIEW PART Legislative Mandate 1.1 Vision A people centered Legislature that champions democracy 1.2 Mission A modern institution of democracy that promotes good governance and a culture of human rights through public participation, lawmaking and oversight that is vigilant, dynamic, proactive and responsive. 1.3 Values The work of the Free State Legislature is conducted on a platform of a formalized set of values. The values are the set of beliefs that guide the management of the Legislature. It is the foundation of policies that provide guidance in the implementation of services and projects. 1. Integrity (honesty) 2. Accountability (responsibility 3. Loyalty (commitment) 4. Respect for diversity 5. Openness and transparency 6. Fairness 7. Empowering 1.5 Constitution of the Republic of South Africa, 1996 Section 116(1) of the Constitution enables the Provincial Legislature to; (a) determine and control its internal arrangements, proceedings and procedures and (b) make rules and orders concerning its business, with due regard to representative and participatory democracy, accountability, transparency and public involvement. Legislation covering establishment and composition of Legislature as well as matters relating to elected representatives and political parties and matters incidental thereto a) Independent Commission for the Remuneration of Public Officer Bearers Act, 1998; b) Remuneration of Public Office Bearers Act, 2000; c) National Council of Provinces (Permanent Delegates Vacancies Act), 1997 d) Determination of Delegates Act, e) Powers, Privileges and Immunities of the Provincial Legislature Act (Act 3 of 1996), specifically the financial arrangements as set out in the Act); f) Powers, Privileges and Immunities of Parliament and the Provincial Legislatures Act (Act 4 of 2004 to the extent that it is applicable); g) Mandating Procedures of Provinces Act, 2008 h) Free State Political Party Fund Act, 2008 and i) Free State Petitions Act, Innovation (creative) Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer

7 Legislation covering financial and ADMINISTRATIVE management 1.2 Powers, functions and responsibilities of the Legislature a) Basic Conditions of Employment Act, 1997; b) Fixing of Remuneration and other conditions of service of staff of the Free State Legislature Act, No 8 of 1994; c) Human Rights Commission Act, 1994; d) Income Tax Act, 1962; e) Labour Relations Act, 1995; f) Legal Deposit Act, 1997; a) The powers, functions and responsibilities of Provincial Legislatures are set out in Chapter 6 of the Constitution. The legislative power of Provincial Legislatures is defined by section 114 of the Constitution. In exercising its legislative power, the Free State Provincial Legislature may consider, pass, amend or reject any bill. It may also initiate or prepare legislation, except money bills. The Constitution also provides for a specific relationship between the Provincial Legislature and the Provincial Executive. Section 142 mandates the Provincial Legislature to exercise oversight over the Provincial Executive by putting in place mechanisms to ensure that all provincial organs of state in the province are accountable to it. These constitutional powers, functions and responsibilities are detailed in Rules 127 to 130 of the Standing Rules and Orders of the Legislature. b) Provincial Legislatures are obliged by the Constitution to conduct their business in an open manner and to facilitate public involvement in these processes. g) Pan South African Language Board Act, 1995; h) Powers, Privileges and Immunities of the Provincial Legislature Act (Act 3 of 1996); i) Promotion of Access to Information Act, No 2 of 2000; j) Promotion of Equality and Prevention of Unfair Discrimination Act, No 52 or 2002; k) Public Finance Management Act (PFMA), Act No 1 of 1999 (as amended by Act 29 of 1999) to the extent that it is applicable; c) The constitutional limitations within which a Provincial Legislature must operate is further provided for in section 104(3) as follows; A provincial legislature is bound only by the Constitution and, if it has passed a constitution for its province, also by that constitution and must act in accordance with and within the limits of the Constitution and that provincial constitution. d) Apart from these specific functions, Provincial Legislatures also play a broader role in the democratic system of government. They strengthen the system of representative government by increasing the overall opportunities for representation, and, as part of the structures of deliberation, they ensure that different perspectives on issues concerning and affecting societies are considered. l) Financial Management of the Free State Provincial Legislature Act, Act 6 of m) Public Protector Act, 1994; n) Skills Development Act, 1998 o) Value Added Tax Act, 1991 LEGISLATIVE MANDATE 1. Introduction The Free State Legislature is established in terms of the Constitution of the Republic of South Africa (Act No 108 of 1996), specifically section 104(1) that determines that; The legislative authority of a province is vested in its provincial legislature. This section aims to provide a general overview of the Legislature s constitutional mandate, its powers, functions and responsibilities as well as it regulatory and control environment. 1.1 Constitutional Principles 1.3 Executive Authority a) Section 4 (1) of the Financial Management of the Free State Provincial Legislature Act, Act 6 of 2009 confirms that the Speaker is the Executive Authority of the Legislature and performs the functions and responsibilities assigned by relevant national and provincial legislation as well as the Standing Rules and Orders of the Legislature. b) Section 4 (2) of the Financial Management of the Free State Provincial Legislature Act, Act 6 of 2009 confirms that the Executive Authority is responsible for the treasury functions in respect of the Legislature. Treasury functions include a) The Legislature is required to function in accordance with the basic principles of governance set out in the Constitution. These principles are underpinned by the entrenched rights contained in the Bill of Rights. The basic principles of governance are set out in Chapter 1 of the Constitution. This provides for; i) Human dignity, the achievement of equality and the advancement of human rights and freedom, ii) iii) iv) Nonracialism and nonsexism. Supremacy of the Constitution and the rule of law. Universal adult suffrage, a national common voters roll, regular elections and a multiparty system of democratic government, to ensure accountability, responsiveness and openness. b) The Free State Provincial Legislature s mandate and obligations must be understood in the context of these constitutional framework and principles of cooperative governance set out in Chapter 3 of the Constitution. (i) (ii) (iii) (iv) (v) Overseeing the preparation of the Legislature s budget; Exercise control over the implementation of the Legislature s budget; Promoting and enforcing transparency and effective management in respect of revenue, expenditure, assets and liabilities of the Legislature; Ensure that the Legislature s fiscal policies are in line with the national and provincial policies; Performing any other function assigned in terms of the referred Act. The Executive Authority is accountable to the Legislature for the effective and efficient financial management of the Legislature and also appoints the Accounting Officer. c) Within this constitutional framework, the National Council of Provinces (NCOP) occupies a central position. It is designed to promote legislative cooperation between National Parliament and the Provincial Legislatures. Through the NCOP, provincial legislatures participate in the national process of lawmaking. This is achieved by each of the nine provinces appointing permanent delegates and by further appointing special delegates from among the Members of the Legislature to participate in the Committees and plenary sessions of the NCOP. c) The Legislature elects a Speaker from amongst its Members in terms of section 111(1) and (2) of the Constitution.Hon MA Tsopois the acting Speaker of the Legislature. Foreword by Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer

8 Elected Representatives 1.4 Organisational Structure a) The Policy on Payment of Benefits, Facilities and Allowances to Members of the Free State Legislature provides for and outlines the conditions under which enabling facilities are made available to elected representatives. This policy addresses enabling facilities such as (i) accommodation and relocation costs, (ii) communication facilities, (iii) travelling facilities, (iv) subsistence allowances, (v) studyaid for elected representatives, (vi) remuneration, (vii) facilities for Members with special needs and (vi) accident insurance. b) Code of Conduct and Ethics for Members of the Legislature (as contained in the Standing Rules and Orders) The Presiding Officers of the Legislature: The acting Speaker to the Legislature is Hon MA Tsopo The position of Deputy Speaker is currently vacant The Chair of Chairs is Hon PN Maloka 2.6 Political Parties The Policy on Funding of Political Parties represented in the Free State Legislature that provides for and outlines the conditions under which enabling facilities are made available to elected representatives. This policy addresses enabling facilities such as (i) accommodation and relocation costs, (ii) communication facilities, (iii) travelling facilities, (iv) subsistence allowances, (v) studyaid for elected representatives, (vi) remuneration, (vii) facilities for Members with special needs and (vi) accident insurance. The Secretariat members : The Secretary to the Legislature is Mr TB Phitsane The Deputy Secretary is Mr TL Mofokeng The Chief Financial Officer is Mr Q Hugo 2.7 Administrative policies of the Legislature a) Financial Code of the Free State Legislature; b) Code of Conduct for the Disclosure of Financial Interests for Employees of the Free State Legislature c) Policy on Communication Services d) Policy on Disciplinary and Grievance Procedures e) Policy on Housing f) Policy on HR Management Foreword by Speaker g) Policy on Information Technology h) Policy on Leave i) Policy on Library Services j) Policy on Probation k) Policy on Provision of Uniforms l) Policy on Salary Advances m) Policy on Transport n) Policy on Supply Chain Management 2.8 International Visits Members and staff of the Legislature undertook international visits during the 2012/13 financial year to NCSL Conference in Chicago, Commonwealth Parliamentary Association conference in SriLanka and SCOPA (Public Accounts) workshop in Liberia. The Legislature recorded costs in respect of air tickets, accommodation, daily allowances and registration fees. The Annual Report and Financial Statements of the Free State Legislature for the 2012/2013 financial year provide an overview of the Legislature s implementation of its core constitutional obligations. These obligations form the basis of the Legislature s strategic focus, namely an informed citizenry that participates meaningfully in the programmes of the Legislature, enhanced accountability of provincial government. Woodrow Wilson was quoted by saying: You are not here merely to make a living. You are here in order to enable the world to live more amply, with greater vision, with a finer spirit of hope and achievement. You are here to enrich the world, and you impoverish yourself if you forget the errand. We need to place much bigger emphasize on the vested responsibility we have toward the being of our province s citizens. The Legislature reviewed and adopted its organizational structure. We believe that this initiative will contribute to the way in which the Legislature promotes accountability, responsibility and openness. I would like to express my profound appreciation to Members of the Legislature, the Secretary to the Legislature and his management team in particular for their support during the year under review. Hon MA Tsopo ACTING SPEAKER Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer

9 The report by the Accounting Officer to the Executive Authority, the acting Speaker of the Legislature, and the Free State Legislature for the Annual Financial Statements for the financial year ending 31 March 2013, provides an overview of the financial performance and challenges of the Free State Legislature (herein referred after as the Legislature) during the year under review. The annual report is published in terms of section 54 of the Financial Management of the Free State Provincial Legislature Act, Act 6 of Future plans and actions of the Legislature The action plan that has been developed as a result of the workshop held represented the key issues that need to be addressed by the institution in order to stabilise it and position it for the next term. It does not replace the initiatives and activities that have been captured in the APP. An adopted detailed action plan will map out the activities that the Free State Legislature should undertake to address and rectify problem areas; therefore moving the legislature into providing excellent services 1.2 General review of the Legislature The strategic review planning session was convened by the Acting Speaker of Legislature and supported by the Secretary and management team. Review session was intended to `take a hard look at what the institution had achieved as part of the current term and identify key challenges that need to be address to ensure that a legacy is left behind that enables the future growth and success of the FSL 1.3 Important policy decisions and strategic issues facing the Legislature Financial Management The Financial Management of the Free State Provincial Legislature Act, Act 6 of 2009 regulates the financial management of the Legislature. The Speakers Forum has reacted to a Constitutional Court judgment, Case CCT 94/10 (2012) where the Financial Management of the Free State Provincial Legislature Act 6 of 2009 was declared inconsistent with the Constitution and invalid. Legal processes to incorporate the provincial legislatures into the national legislation, i.e. the Financial Management of Parliament Act is ongoing and the proposed legislation has been referred to the Standing Committee on Finance. It is expected that legislation should be promulgated within the next financial period. The Legislature has developed a range of policies pertaining to elected representatives, political parties, staff and various institutional practices in order to guide and regulate the daily implementation of services and projects. In respect of such policies, the review highlighted the need to ensure that existing shortcomings and weaknesses are identified and that key legislation and good governance frameworks, such as King II and the recently published King III report on governance and good business practices, are incorporated into the existing policy framework. REPORT OF THE ACCOUNTING OFFICER Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer

10 Results and challenges for the year A key challenge in both organisational and individual performance was the lack of structure performance management within the organisation. This include poor performance monitoring and reporting against the annual performance plan and a lack of performance management of staff in terms of their key performance areas (iii) Programme 3 : Parliamentary Services The programme is responsible for the rendering of support services in respect of the legislative, oversight and accountability functions of the House and its Committees. These services are rendered through the; (i) Table Services Unit, (ii) Hansard Directorate, (iii) Legislation and Oversight Directorate and (iv) Legal Services. The programme recorded a 97.75% spending against its budget. An ineffective committee system that was not giving effect to the core business of the institution and was not geared to implement the sector oversight model Ineffective practice and performance in respect of public participation, communication and profiling of the legislature A lack of effective procedural support services (including language services) to enable the house and committees to function effectively A lack of research and information services (including library) to empower the members, staff and the overall work of the legislature Ineffective HR practices that contributed to poor staff development and management and a culture of low productivity Poor practice in respect of facilities and security management The Legislature activities (Public Hearing) including NCOP (open weeks) are held successfully and there has not been a framework to incorporating them into the Free State Legislature Strategic and Annual Performance Plans i.e. each and every event should have a concept document that embodies the Strategic Objectives. 1.5 Comment on significant events that have taken place during the year The Speakers Forum has embarked on introducing an oversight model to standardize the approach followed by Provincial Legislatures to perform its constitutional mandate of oversight. One of the preconditions for the effective implementation of the model is the need for each legislature to adopt customized models. In order for the oversight model to gain support within the legislatures, it has to be properly coordinated and led. The acting Speaker has appointed the Chair of Chairs to lead and champion the Sector Oversight Model, with the support of the Deputy Secretary. It is expected that the adoption of a customized model will be finalized during the second quarter of A key strategic objective of the Legislature is to provide for an efficient and effective administration. Efficient financial management and controls were maintained and emphasis was also placed on a risk management review. Overall, one can report that our control principles have improved and it should also be noted that the Legislature received a financially unqualified audit opinion for the 2012/13 financial year. The official opening of the Free State Provincial Legislature was held on 21 February The Free State Provincial Legislature also embarked on a programme where all budget votes of departments were held in different towns during March Comment of major projects undertaken or completed during the year The Legislature has adopted a reviewed organizational structure. Critical posts were identified for filling and shortlisting was concluded during March 2013, with appointments poised to be finalized during the next month. 2. General review of the state of financial affairs 2.1 Spending trends of programmes (i) Programme 1 : Administration Provides for the core political and administrative management of the institution through the Offices of the Speaker and Accounting Officer whilst also delivering a support service to other programmes in the budget vote through the Finance and Corporate Services divisions. It facilitates the legislative and oversight functions through the programmes of the Household and Portfolio Committees and provides institutional support and corporate services. The programme recorded a 99.40% spending against its budget. (ii) Programme 2 : Facilities for Members and Political Parties Provides for the rendering of direct support services and facilities to elected representatives of the Free State Legislature as per the Policy on Payments, Facilities and Benefits of Members of the Legislature. It also provides for the rendering of support services to political parties represented in the Legislature. The programme recorded a 96.72% spending against its budget. Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer (iv) Remuneration of Members of the Legislature is a statutory charge, which recorded 97.7% against its allocated budget. The fourth Legislature intends to make continuous progress to provide an enabling environment for effective and efficient services to be rendered. Voted funds of R million were appropriated and the Legislature recorded actual spending of R202,511 million. The Legislature spent 98.3% of its allocation and its financial position of the Legislature can be reported as sound. 2.2 Reasons for under/over spending The under spending of Programme 1 : Administration related to postponed appointments of critical posts, as well as a recorded under spending of 1% to contractors assigned to the new Legislature building. The under spending of Programme 2 relates to a forfeiture of a grant to a political party. The under spending of Programme 3 : Parliamentary services relates to a vacancy at the Office of the Legal Advisor, which were budgeted in full, but filling of the post was only addressed during the latter part of the year. 2.3 Impact on programmes and service delivery The Legislature has a constitutional mandate to lawmaking, oversight over the executive and to ensure that public participation in lawmaking and oversight are driven effectively. Review of its overall strategy was a joint project amongst members of the Legislature and its management. The Legislature hosted events to focus in particular on the youth and women of the province. The Legislature has intensified its public education campaign by placing emphasis on the petitioning system. 2.4 Donor Funding on programmes and service delivery The Legislature Support Programme came into operation during the reported period. A formal agreement was signed between Parliament and the European Union with the main aim to support the legislative sector. Funding has been awarded to support three areas, public participation, lawmaking (oversight) and efficient and effective institution. The Legislature, who received R3,8 million, spent 52% of its donor allocation for the year under review. 2.5 Plans for the future to address financial challenges The implementation of the Sector Oversight Model is registered as a financial challenge, as the current budget allocation allows only for minimal adjustments. The baseline allocation of the Legislature has to be reviewed to ensure that the implementation of the Sector Oversight Model can be sustained. The reviewed organizational structure brought about the filling of more vacancies which require budget as well as the implementation of a management performance system. It is expected that engagements between the Speaker and the MEC : Finance will continue to ensure that financial resources are allocated to support such initiatives. 2.6 Revenue The Legislature generated revenue from interest and proceeds from disposed capital assets. The recorded revenue is confirmed R1,232 million. 2.7 Virement A virement of R2,852 million was approved by the Speaker to shift funds from Programme 2: Facilities for Members and Political Parties and Programme 3 : Parliamentary Services to Programme 1 : Administration. The shift can be attributed to an overspending on operational items. 2.8 Reason for unauthorized, fruitless and wasteful expenditure A balance of R14,000 which was recorded as fruitless, emanates from a supplier who was liquidated. Steps to recover the debt were not successful and an application to condone the balance has been prepared. 2.9 Capacity constraints The reviewed organizational structure resulted in the advertisement of critical posts for filling in Interviews were conducted and appointments, in some instances, have been concluded. It is expected that all advertised posts should be filled during the first quarter of the next financial year Interim Financial Statements The Legislature issued quarterly financial statements within prescribed timeframes. Assessments on these statements have been performed by Provincial Treasury. Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer

11 Organisations to whom transfer payments have been made In terms of Section 116 (2) ( c ) of the Constitution, the following political parties received transfer grants from the Legislature: African National Congress Congress of the People Democratic Alliance Freedom Front All represented political parties are required to account for grants in terms of the Political Party Fund Act, Act 3 of Internal policies and regulations provide a legal framework within which political parties maintain their constituent, research and office support grants Discontinued activities / activities to be discontinued No discontinued activities or activities to be discontinued are reported New / proposed activities The activities of the Legislature are primarily a continuation of existing activities, carried out in terms of the constitutional and legal mandate of the Legislature. New activities include: Establishment of a performance management system Implementation of a Sector Oversight Model Transition to Generally Recognised Accounting Principles (from Modified Cash) 2.14 Supply chain management The Legislature reviewed its supply chain management policy which initially formed part of the Financial Code. A separate supply chain management policy had been adopted. The Legislature reviewed its supply chain management s organizational structure to improve capacity. Appointments will realize in the next financial year. Supply chain processes and systems are in place Event after the reporting date No events took place after the accounting date that could materially influence the state of financial affairs of the Legislature Deviations No deviation from financial reporting requirements can be reported upon. I wish to place on record my appreciation towards the Presiding Officers, Members of the Legislature as well as the management and staff who constructively contributed throughout the financial year to realize the aims of objectives of the Free State Legislature. 21 TB PHITSANE SECRETARY TO THE LEGISLATURE Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer

12 22 4SECTION FOUR POLITICAL LANDSCAPE OF THE FREE STATE LEGISLATURE d) The following Members served as Whips for their respective political parties as at 31 March 2013; i) Chief Whip (ANC and Legislature): Hon JPParkies ii) ANC Whip: hon ST Magwandana 23 iii) ANC Whip: Vacant 3.1 Political Parties represented in the Legislature a) The seat allocation was as follows; Political Party No of Seats iv) ANC Whip hon CJ van Rooyen v) Cope Hon IM Hleko vi) DA hon PJ Frewen African National Congress 22 Congress of the People 4 Democratic Alliance 3 Freedom Front Plus Official Opposition The Congress of the People, holds 4 seats in the Legislature and is the Official Opposition. 3.2 Determination of Whips to Political Parties a) The Whips Committee performs the functions and responsibilities assigned to it by the Standing Rules and Orders. Such functions and responsibilities relate to both administrative and procedural matters. The Whips are also assigned specific functions by the respective political parties that may relate to Members discipline, constituency offices and the administration of funds allocated to political parties in terms of the Policy on Funding of Political Parties in the Legislature. b) The formula for the allocation of Whips to political parties were not reviewed or amended during the financial year under review and remained as follows; 3.4 Remuneration of elected representatives a) The remuneration of political representatives is determined by the Independent Commission on Remuneration that submits its recommendations annually to the President. The remuneration of elected representatives for the 2012/13 financial year was dealt with in accordance with the Premier s proclamation printed in the Provincial Gazette of 28 September 2012 (Notice 77of 2012). ANNEXURE ONE Public Representatives Members of the Provincial Legislature as at 31 March 2013 [Excl. Premier and MECs] i) 1 Whip for every 8.69 Members per party; ii) The Chief Whip of the majority party is excluded from the formula of 1 Whip for every 8.69 Members and Member Political Portfolio iii) Chief Whip of the largest minority party (Cope official opposition) is excluded from the formula. Party a) Political parties who are not entitled to a Whip in terms of the formula outlined above, still participate in Whips meetings. Hon Tsopo, MA ANC Acting Speaker Vacant ANC Deputy Speaker Hon Parkies, JP ANC Chief Whip Public Accounts Hon Van Rooyen, CJ ANC Chairperson: Finance, Office of Premier & Legislature Vacant ANC Chairperson: Cooperative Governance, Traditional Affairs and Human Settlement Committee Hon Makae, SP ANC Chairperson: Education and Sport, Arts, Culture and Recreation Committee Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer

13 Permanent Delegates to the National Council of Provinces as at 31 March 2013 Hon Maloka, PN ANC Acting Chairperson: Health and Social Development Committee Hon Thoabala, ME ANC Chairperson: Public Works, Economic Development, Environmental Affairs and Tourism Committee Member Hon Jacobs, MP Political Party African National Congress Hon Scheepers, M ANC Chairperson: Police, Roads and Transport Committee Hon Mofokeng, TMH African National Congress Hon Maloka, PN ANC Chairperson of Committees of the Whole House Hon Mnguni, BA African National Congress Hon Magwandana, ST ANC Chairperson: Agriculture & Rural Development Hon Moshodi, ML African National Congress Hon Sesele, MB ANC Member Hon Worth, DA Democratic Alliance Hon Ramokhoase, TRJ ANC Member Hon Bloem, DV Congress of the People Hon Mokitlane, MC COPE Leader of Official Opposition Hon Mothupi, DG COPE Member 3.7 Members of the Executive Council as at 31 March 2013 Hon Hleko, IM COPE Member Member Portfolio Hon Lala, SN COPE Member Hon Magashule, ES Premier Hon Jankielsohn, R DA Leader: Minority Party Hon B Malakoane MEC: Health Hon Alexander, B DA Member Hon Frewen, P DA Member Hon Oosthuizen, AP FF Leader: Minority Party Hon Ntombela, SH MEC: Social Development Hon Makgoe, PHI MEC: Education Hon Rockman, EC MEC: Treasury Hon Mlamleli, SN MEC: Corporate Governance, Traditional Affairs & Human Settlement Hon Kgothule, DAM MEC: Sport, Arts, Culture &Recreation Hon Zwane, MJ MEC: Agriculture& Rural Development Hon Qabathe, MG MEC: Economic Development, Tourism & Environmental Affairs Hon Mabe, ES MEC: Public Works Hon Khompela, B MEC: Police, Roads & Transport Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer

14 26 4SECTION FOUR Programme PERFORMANCE INFORMATION 4.1 Accounting Officer s Statement of Responsibility for Performance Information PARTB 4.2 Aim of Vote a) The aim of Vote 2: Provincial Legislature is to provide for the procedural and administrative support services required by the Legislature to fulfill its constitutional functions, inter alia, the consideration of legislation, the performance of monitoring and oversight functions, ensuring accountability by the Executive Council as well as facilitating and enhancing public participation in the legislative processes. b) The Vote aims to provide the necessary and required facilities to the House, its Committees and Members and to enable political parties represented in the Legislature to secure administrative support services and to serve constituents. 27 The Free State Legislature aims to achieve its constitutional mandate and obligations through its five year strategic plan. The following report reflects on its performance targets for the period 2012/13. The format of the performance information reflects defined goals and measurable objectives. Strategic reviews are conducted annually to ensure that strategic objectives are kept up to date with changing times. The Accounting Officer is responsible for the preparation of the Legislature s performance information and for the judgements made in this information. The Accounting Officer is responsible for establishing, and implementing a system of internal control designed to provide reasonable assurance as to the integrity and reliability of performance information. In my opinion, the performance information of the legislature for the financial year ended 31 March c) The Vote also provides for the remuneration of elected representatives and employees of the Legislature. 4.3 Strategic Outcome Oriented Goals The Legislature had to ensure that it fullfil its constitutional mandate by giving practical effect through a five year strategic plan and annual performance plans of its constitutional commitments. Six strategic goals formed the basis of the strategic plan and a short narrative will follow on the successes and failures achieved over the past period. Strategic Goal 1 Transformative lawmaking Transformative lawmaking that contributes to the attainment of rights enshrined in the Constitution for all citizens of the province Strategic Goal 2 Quality oversight and accountability over the Executive Enhancement of the quality of oversight and accountability of the performance of provincial organs of the state and the mechanisms for their accountability Strategic Goal 3 Increased public education and participation TB Phitsane Accounting Officer Legislature 31 May To build an activist Legislature by proactively maximizing public education and participation, the timeous handling of petitions and transparency in its processes. This goal is linked to the broader national goal of deepening participatory democracy in the country. The timeous handling of petitioning require more attention as a number of petitions have been recorded, but not been attended to at the reported period. Strategic Goal 4 Building an effective administration 4.2 Voted Funds Appropriation Main Appropriation Adjusted Appropriation Actual Amount Spent (Over)/Under Expenditure R 000 R 000 R 000 R 000 Strategic Goal 5 Improved support to political representatives The support referred to relate to increase capacity of Members of the Legislature as well as allocating resources to political parties through constituent, research and political party grants in an effort to promote practices of democracy to the citizens of the Province. Members have been exposed to consistent training initiatives, such as the PALAMA project and wellequipped to perform the responsibilities vested with them. Whilst limited funding may have hampered political parties to expand its role through constituencies, represented political parties received funding from the Legislature to perform a constituent function. The tabling of constituent reports as a measure to reflect on the successes and failures of a constituency has however not been as successful as one would have anticipated. 205, , ,511 3,374 Executive Authority Acting Speaker Administering Free State Legislature Entity Accounting Officer Secretary to the Legislature Strategic Goal 6 Social transformation and nationbuilding The pursuance of fundamental social transformation and nationalbuilding gained momentum with initiatives by the acting Speaker on establishing women and children programmes. Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer

15 Overview of the Legislature s Performance The performance of the Legislature is informed by its programme. As the Legislature is events driven its continued to embark on a number of programmes to encourage citizen participation. Portfolio Committees continued to perform its oversight role and has also positioned itself to adopt the Sector Oversight Model, which is intended to be rolledout in the next financial period. Institutional services were delivered to the relevant stakeholders of the Legislature, be it Presiding Officers, committees, members and staff. The Legislature appropriated R5,463 million through its Adjustment Appropriation. Retained revenue, which does not form part of the revenue streams flowing from Provincial Treasury, has been used to cover costs relating to compensation of employees as well as a shortfall on a political party grant. The Legislature remained within its allocated budget. 4.8 Departmental revenue, expenditure and other specific topics Departmental Receipts Sales of goods and services other than capital Estimate 2012/ /12 Actual Amount collected (Over)/Under collection Estimate Actual Amount Collected (Over)/Under collection R 000 R 000 R 000 R 000 R 000 R Auditor General s Report: Predetermined Objectives Reference is made to paragraph 9 under report on other legal and regulatory requiremnets by the Auditor General. Achievements of note: 1. Governance structures such as the Audit Committee issued a range of assignments to the Internal Auditor to remedy identified shortcomings through risk assessments and governance reviews. 2. Events such as the Official Opening (State of the Province address), youth/women events, public participation initiatives as well as portfolio committee events such as public hearings were successfully hosted 3. Member participation in PALAMA training course 4. Received an unqualified audit opinion (2012/13) 4.6 Overview of the organizational environment for 2012/13 The Legislature has 30 elected political officebearers. The untimely death of MEC F Ngumbentombi, resulted in the election of hon B Malakoane as Member of the Legislature and appointment of MEC : Health. The election of hon E Rockman as Member of the Legislature resulted in hon SJ Mohai, becoming a Member of the National Assembly, hon Rockman was appointed as MEC : Treasury during March The Legislature also recorded the resignation of hon MA Dukwana as Member of the Legislature during February The review of the permanent staff structure of the Legislature was concluded and adopted by the acting Speaker during October Placement of staff was concluded and critical posts were identified, advertised with interviews and filling of these posts is intended to be finalized during the first quarter of The Legislature will continue to increase its staff complement in an effort to improve support toward its institutional and parliamentary structures. The Sector Oversight Model as well as conformity toward applicable financial legislation (establishment of GRAP (general recognized accounting principles) will have a profound impact on the support structure of the Legislature and will gain momentum in the next financial period. Fines, penalties & forfeits Interest, dividends and rent on land Sales of capital assets Financial Transactions (Recovery of loans and advances) Transfers received Total Departmental Receipts 7 (7) (204) (242) 28 (28) 12 (12) 20 (20) 1,030 1,232 (202) 1, Key policy developments and legislative changes The Financial Management of the Free State Provincial Legislature Act, 2009, Act 6 of 2009 regulates the financial management of the Legislature. A Constitutional Court ruling during 2011 resulted in a project whereby Parliament and all provincial legislatures would conform to one piece of legislation, to regulate the respective financial business of the said institutions. It is expected that the new act would be promulgated during the 3 rd quarter of A number of institutional policies, ranging from supply chain management, information technology and amendments to the policy of funding of political parties were adopted during the period under review. Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer

16 Departmental Expenditure Summary of Programmes 2012/ /12 The budget format of the Legislature is as follows; Programme Description SubProgrammes Programme One Administration Office of the Speaker Programme Final Appropriation Actual Expenditure (Over)/Under Expenditure Final Appropriation Actual Expenditure (Over)/ Under Expenditure R 000 R 000 R 000 R 000 R 000 R 000 Programme Two Facilities and Benefits for Members and Political Parties Office of the Secretary Finance Division Corporate Services Division Members Facilities Political Parties Programme Three Parliamentary Services Procedural Services, including Hansard& Table Services Legislation and Oversight Legal Services Statutory : Members Remuneration Direct Charge DETAILED BUDGET PROGRAMME Administration 109, , , , Facilities for Members and Political Parties Parliamentary Services Members Remuneration 52,158 51, ,209 42,036 7,173 24,195 23, ,580 21,822 (242) 20,340 19, ,541 18, Total 205, ,511 3, , ,588 7, Transfer payments PROGRAMME PROGRAMME 1 DIRECT CHARGE PROGRAMME 2 PROGRAMME 3 SUBPROGRAMME (1) Office of the Speaker (2) Office of the Secretary: Public Participation Security Administrative unit Internal Audit (3) Finance Division: Supply Chain Management (4) Corporate Services Human Resources Institutional Support Members Remuneration Facilities to Members Transfers to Political Parties Procedural Services Table Services Directorate :Hansard Directorate : Legislation & Oversight Office of the Legal Advisor The Policy on Funding of Political Parties represented in the Free State Legislature as well as in terms of the Free State Political Party Fund Act, Act 3 of 2008 sets out the relevant formulas and conditions according to which transfer payments to political parties are made. The purpose of the funding of political parties is to enable each political party represented in the Legislature to (i) establish and maintain administrative support structures in the Legislature (ii) conduct research and (iii) establish and maintain constituency offices. The following transfers have been made to represented political parties in respect of the Free State Political Party Fund Act, Act 2 of 2008: Name of transferee African National Congress Purpose for which the funds were to be used Amount budgeted for (R 000) Amount transferred (R 000) Reasons why funds were not transferred Political Party Grants 24,130 25,055 Congress of the People Political Party Grants 3,617 2,339 Democratic Alliance Political Party Grants 3,612 3,612 Freedom Front Plus Political Party Grants Refer to Audit Opinion Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer

17 Capital investment, maintenance and asset management plan a. Capital Investment The new building for the Legislature at Ramkraal, Mangaung, is a Department of Public Works project, with the Provincial Legislature being the client. The project received funding of R116.5 million over a three year period, commencing in Funds totalling R12 million was however deducted from the Provincial Legislature and reallocated to the Department of Police, Roads and Transport, as a reprioritisation towards maintenance of the provincial roads. Budget has been reallocated to the Department of Public Works for future financial years. Refer to the table below for a presentation of the new building for the legislature at Ramkraal, Mangaung. b. Maintenance (i) The Fourth Raadsaal which houses sittings and committee meetings remains the responsibility of the Department of Public Works. The Department renovated the Fourth Raadsaal during the previous financial year (2011). (ii) Maintenance of rented office space at the Southern Life Plaza is provided for in terms of a lease agreement. c. Asset Management (i) The legal framework within which assets are administered and maintained is constituted by section 29 of the Financial Management of the Free State Provincial Legislature Act, Act 6 of Section 7 of the Financial Code deals extensively with asset management. Asset holdings have remained similar to the previous period. Disposal of redundant vehicles were sold at a public auction. (ii) Asset Register Newly acquired assets have been recorded on the asset register. Disposals have been removed from the register and a full inventory check was concluded on all content reflected in the asset register. All assets were valued and recorded at fair value, where possible, in terms of section 29 (2) (b) of the Financial Management of the Free State Provincial Legislature Act, Act 6 of / /12 Infrastructure Projects Final Appropriation Actual Expenditure (Over)/Under Expenditure Final Appropriation Actual Expenditure (Over)/Under Expenditure R 000 R 000 R 000 R 000 R 000 R 000 New and replacement assets 32,500 32, ,498 38,948 Total 32,500 32, ,498 38,948 Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer

18 34 35 SECTION FIVE 5 Programme PERFORMANCE Information Programme 1 Administration a) Programme 1: Administration provides for the core political and administrative management of the institution through the Offices of the Speaker and Accounting Officer whilst also delivering a support service to other programmes in the budget vote through the Finance and Corporate Services divisions. It facilitates the legislative and oversight functions through the programmes of the Household and Portfolio Committees and provides institutional support and corporate services. b) The subprogramme structure comprises of the following: i) The Office of the Speaker includes all activities of the Office of the Presiding Officers, including the funding of programmes and activities of Household and Portfolio Committees; ii) The Office of the Secretary to the Legislature includes (i) Strategic Management Unit, (ii) Legal Advisor, and (iii) the Internal Audit Unit; Level of Planning Strategic Goal 1 Strategic Objective 4.1 Planning Statement Increased level of cooperative governance tured working Number of struc with key institutions and stakeholders for the realisation of institutional mandate Increased cooperation and collaboration with other key stakeholders OFFICE OF THE SPEAKER Indicator Statement Actual Achievement Planned Actual Achievement Deviation from Comment 2011/2012 Target 2012/2013 on planned target to 2012/2013 Actual Achievement 2012/2013 deviation arrangements with key stakeholders in respect of cooperative governance and IGR Positive stakeholder rating achieved iii) iv) The Office of the Deputy Secretary includes: (a) Public Participation Unit, (b) Security Unit, and (c) Policy and Research Unit The Finance Division includes the (i) Financial Management Unit, (ii) Supply Chain Management Unit v) The Corporate Services Division includes the (i) the Human Resources Directorate and (ii) the Institutional Support Directorate Office of the Speaker 5.1 Programme Performance Speaker includes all Presiding Officers. Direct support services are rendered to ensure that the Office is able to meet its objectives and requirements. These include political, administrative and operational matters. The subprogramme also provides for the activities of Household and Portfolio Committees to ensure that both institutional governance priorities as well as key responsibilities for oversight and accountability are addressed. Facilitation and interaction with the Executive Council and local government are also accommodated in the office. Measurable Improved Legislature Number of meetings Objective InterGovernmental Relations and International of the Pro vincial Speaker s engagementsforum Identify institutions New Indicator to partner with in terms of the work of the Legislature (eg NGO s) 0 2 No meeting No meeting Meetings could not be convened due to unavailability of Speakers (local councils) Identify Draft document Institutions outlining partnership that the Legislature intends to form completed and routed for approval. Not achieved Not Approved 2012/ /12 SubProgramme Final Appropriatioditure Actual Expen (Over) / Under Final Appropria Actual Expen (Over) / Under Expenditure Expenditure tion diture R 000 R 000 R 000 R 000 R 000 R 000 Office of the Speaker 46,459 45, ,722 56, Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer

19 Office of the Secretary a) The Office of the Secretary bears responsibility for the overall effective and efficient management and administration of the Legislature. The accounting officer is responsible for all aspects relating to the provision of support services, i.e. corporate, financial, procedural and legal, to create an enabling environment in which the Legislature effective and efficiently executes its constitutional mandate and functions. b) The Public Participation and Education Unit supports the Secretary to the Legislature in the implementation of the core function of the Legislature to facilitate public participation and involvement in the Legislature s processes. c) The Internal Audit Unit supports the Secretary to the Legislature to ensure compliance with relevant provisions of the Finance Act which regulates the financial administration of the institution as well as with the standards and practices of the Institute of Internal Auditors. The role of the unit is not only limited to the execution of audits and ensuring fraud and corruption prevention, but also ensures that the Legislature receives maximum value from expended resources. d) The Security Unit assists the Secretary to the Legislature to comply with the MISS as directed by the national cabinet. The unit is also responsible for the security of users and property of the Legislature and is responsible for the development of appropriate policies and procedures in this regard. The unit ensures cooperation and interaction with government and private security service providers. e) The Administration Unit assists the Secretary to the Legislature to facilitate an efficient and effective document management system, including the establishment and maintenance of the procedural archive. Level of Planning Planning Statement Indicator Statement Administration Sub programme: Office of the Secretary Actual Achievement 2011/2012 Planned Target 2012/2013 Actual Achievement 2012/2013 Deviation from Comment on planned target to deviation Actual Achievement 2012/2013 Planning ment Achievement 2011/2012 Measurable Objective Strategic Objective 2.2 Maximize public participation in the legislature processes of oversight and law making Improved communication with citizens Measurable Objective Improved communication with the people of the FSL in respect of the legislature Framework for enhancing the effectiveness of constituency offices Number of public hearings and committee consultation of specific legislature business Number of service delivery focused debates Communication tools such as radio slots, newspaper articles to be publishes Communication strategy adopted by target date New Indicator Report on 40 Public Hearings 2012/2013 ment 2012/2013 planned target to Actual Achievement 2012/2013 effectiveness of constituency offices 30 Public Hearings deviation Matter reported to Approval PendingNot approved the Chairpersons Panel/Submitted for Speakers Approval 46 Public Hearings Positive deviation More Public Hearings were convened due to increased number of national legislation 9 debates 5 debates 17 debates Positive deviation More service delivery debates were held than originally anticipated 5 Projects Radio Slots and Local radio articles covering the work of conducted with interviews were the Legislature Speaker and MPLs to be facilitated Draft submitted Communication strategy not adopted adopted by target date No deviation Communication strategy was adopted by the Rules & Orders Committee No deviation 37 Strategic Goal 2 Strategic Objective 2.1 Increased number and capacity of people in the Free State to participate in the legislative processes Percentage of people in the FS meaningfully participating in the legislature processes Increased public interest and displaying knowl Percentage of people awareness in edge of the legislative the legislative process process Measurable Objective Improved district based education and awareness programmes to increase understanding of the work of the legislature Maximise the utilization of ward committees and constituency offices to improve public participation 7 District Workshops held 17 District Workshops 17 Public Hearings Conducted No deviation Public Education is ongoing and is informed by the number of sittings; public hearings and site visits [See register of sittings of legislature and reports of Legislature on site visits and public hearings] Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer

20 38 39 Administration 2012/ /12 Sub programme: Office of the Secretary Sub Final Appropriatiopenditurder Expendipriatiopenditurditure Actual Ex (Over) / Un Final Appro Actual Ex (Over) / Under Expen Programme ture Level of Planning Measurable Objective2.2.2 Strategic Goal 3 Strategic Objective 5.4 Measurable Objective Planning Statement Promote nation building/social cohesion and social responsibility through public involvement initiatives Increased efficiency and effectiveness of the legislature support functions Improved governance, management and administration Improved compliance with legal and good governance requirements Indicator Statement Number of events to promote nation building and social cohesion Favorable Auditor General Report Compliance Comprehensive risk register and mitigation strategies completed by target date Number of internal audit reports Actual Achievement 2011/2012 Planned Target 2012/2013 Actual Achievement 2012/ events 3 events Not achieved Clean Audit Audit Committee mandated Acting Secretary to act on the Audit ReportAudit Committee met during January as well as February Risk Register to discussed by management 4 Internal Audit Reports Maintain favourable Auditor General report Solve audit exceptions raised in Management Report Risk Register reviewed and tabled to Audit Committee 4 Internal Audit Reports Favourable audit outcome achieved Action plan finalized and submitted to Internal Auditor Reviewed by Internal Auditor and tabled to Audit Committee 4 Reports were discussed and tabled to Audit Committee. Deviation from planned target to Actual Achievement 2012/2013 Comment on deviation 100% deviation Events rescheduled for the next financial period No deviation No deviation No Deviation HR Report /Supply chain not concluded. The following reports have been tabled: Dashboard Review, Risk update, Governance Review and Followup on prior year HR Report withdrawn and amendments to be made. SCM assignment postponed due to late adoption of policy. Earmarked for next audit period Office of the Secretary Finance Division The Office of the Chief Financial Officer comprises of two directorates: Finance and Supply Chain Management. The Finance division comprises of the following units; (i) budget section, (ii) payment section, (iii) accounting services and (iv) payroll section. The Supply Chain Directorate comprises of a Demand, acquisition & logistics unit and an asset and fleet management unit. The strategic objectives, performance outputs, measures and targets are all informed by the core competencies that each of the units must perform. Situation Analysis The primary objective of the Finance Division is to implement effective, efficient financial management systems and develop and enhance processes for sound financial management. Responsibilities range from budget coordination, processing and reporting of financial information in terms of applicable legislation. The financial system currently used is Promun. Level of Planning Strategic Objective 5.1 Measurable Objective Measurable Objective Measurable Objective Planning Statement Improved management of financial resources in the legislature Complete the establishment of a fullyfledged finance division Build the capacity of the financial management team Improved compliance with financial procedures and regulations (quarterly and annual financial reporting, Asset inventory) R 000 R 000 R 000 R 000 R 000 R ,341 21, ,242 20,237 (995) Indicator Statement Number of critical posts filled Number of training interventions implemented Compliance with financial procedures and regulations Administration Sub programme: Finance Actual Achievement 2011/2012 Target Planned 2012/2013 Critical posts in Implement structure have approved been identified structure for and the Rules Finance Committee support filling of identified posts (Budget presentation March 2012) 3 sessions 4 Training sessions Compliance have been achieved with applicable legislation, policies and financial code, however regulations were not adopted Ensure compliance with applicable legislation and policies Actual Deviation Comment on deviation Achievement from planned 2012/2013 target to Actual Achievement 2012/2013 Reviewed Interview process Director structure approved by the SCM not completed Speaker. Critical positions advertised, interviews concluded. Director SCM not shortlisted. 4 GRAP training sessions No deviation The Legislature ad No deviation hered to the applicable legislation and policies. Regulations would be considered once new Act gets promulgated Process to address first quarter 2013/2014 Promulgation of national financial act for Parliament and Provincial Legislatures which is at Committee stage. To be concluded before regulation are to be adopted Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer

21 40 41 Level of Planning Measurable Objective Strategic Objective 5.2 Measurable Objective Planning Statement Improve the functioning the internal audit system Improved procurement of goods and services in terms of turnaround times and quality Improve compliance to SCM Policy Indicator Statement Reliance on internal audit by the external auditor Compliance of 30 days notice period Full compliance to SCM Policy and regulations Actual Achievement 2011/2012 Target Planned 2012/ Adoption on internal Audit plan by Audit Committee and finalized risk assessment 2. Feedback given by internal auditor during Sept 11AC meeting 3. Commissions i.r.o SCM, Skills and consideration of AFS were completed Sound auditor general rating on internal audit function Actual Deviation Achievement from planned 2012/2013 target to Actual Achievement 2012/2013 Internal audit No deviation assignments were issued by the Audit Committee, Internal Audited presented a dashboard reviews, as well as Internal Audit Plan (Inclusive of risk update Audit progress assessment performed 4. AC meetings were convened 24 May2011,28 June 2011,29 July 2011,30 January 2012 and 22 February 2012 New indicator 30 Days Bulk of payments are done within the prescribed timeframe of 30 days Draft SCM Finalization of SCM regulations were submitted to the regulations to AG for comment improve on compliance SCM Policy finalized and submitted to Standing Rules and Orders for adoption Reasons can be provided for deviation of payments not settled within 30 days. Adopted, no deviation Comment on deviation More control measures is planned to comply with prescribe 30 day payment. Level of Planning Strategic Goal 5 Strategic Objective 5.3 Measurable Objective Planning Statement Increased efficiency and effectiveness of the legislature support functions Effective a and efficient management of human resources Improve organizational structure and capacity SubProgramme Final Appropriation Corporate Services Indicator Statement Administration Sub programme: Corporate Services % compliance of Proposed HR policies and procedures with HR best practice Actual Planned Target Actual Achievement 2012/ /2012 Achievement 2012/2013 Performance Management System was received, but not adopted Proposed Performance Management System was received, but not adopted Reviewed organioutstandingzational structure Proof that the approve Finalize and structure approved and structure reviewed HR can file record and distribute it to everyone. The new structure is therefore not yet implemented. Permitting budget 60% 40% of vacant posts were filled Appointment of posts to improve capacity Performance 100 % deviation Management System /policy not completed The new structure was finalized and approved during February critical posts identified, advertised,interviewed for filling and some appointments commenced late in 4 th quarter Deviation Comment on deviation from planned target to Actual Achievement 2012/2013 Execution of the final phase of the implementation of the reviewed structure in progress Partially achieved 2012/ /12 Actual Expenditure (Over) / Under Final Appropria Actual Expenditure Expenditure tion R 000 R 000 R 000 R 000 R 000 R ,114 13,249 (135) 12,484 11, Implementation plan not yet executed due to the delay in finalizing the implementation of the new structure No deviation HR processes of recruitment were obtained, although not all appointments have been concluded at yearend. (Over) / Under Expenditure 2012/ /12 Sub Programme Final Appropriation Actual Expenditure (Over) / Under Expenditure Final Appropriation Actual Expenditure (Over) / Under Expenditure Financial Management R 000 R 000 R 000 R 000 R 000 R ,278 28, ,628 24,696 (68) Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer

22 42 43 Level of Planning Planning Statement Indicator Statement Actual Achievement 2011/2012 Planned Target 2012/2013 Actual Achievement 2012/2013 Deviation from planned target to Actual Achievement 2012/2013 Comment on deviation Measurable Objective Increased utilization of ICT management systems and tools ICT strategy Not achieved ICT strategy to approved by be approved and target date implemented Draft ICT strategy submitted for approval. 3. The following information system policies were approved by the Standing Rules and Orders Committee: 4. Service Baseline ICT Strategy policy not approved Pending for approval 5. Patch Management Policy Measurable Objective5.7.1 Strategic Objective Measurable objective Organizational and individual performance framework completed by target date Increased utilization of ICT management systems and tools Compliance with the National Key Points Act Improve the access control system Performance framework to be completed Business case for Procurement of ICT systems developed by target date Security cards for MPLs to ensure access to all government buildings 6. IT Steering Committee Charter 7. Information Systems 8. Security Policy 9. Information Disaster Recovery Plan 10. Account Management Policy No activity No activity Draft performance policy proposal compiled 2013 Two additional network points were installed Security Cards to Members finalized Training equipment supplied for Secretary s boardroom Security Cards issued Thirty one desktop computers were procured for administration No Deviation No further progress Laptop for librarian and two ipads for Cope MPLs were procured Programme 2: Facilities and Benefits to Members Facilities and Benefits to Members and political parties provides for the rendering of direct support services and facilities to elected representatives of the Free State Legislature as per the Policy on Payments, Facilities and Benefits of Members of the Legislature and grants payable in respect of the Political Party Fund Act (4 of 2008). b) The subprogramme structure provides for the rendering of services according to two key policy documents of the Legislature, namely; i) Policy on Facilities, Benefits and Payments to Members of the Legislature that provides for; 1. Accommodation and relocation 2. Communication Facilities 3. Travelling Facilities 4. Subsistence Allowances 5. Study aid 6. Remuneration 7. Facilities for Members with special needs 8. Accidents and death ii) Policy on funding of Political Parties represented in the Legislature that provides for; i) Payment of Office Allocation to Political Parties (including research allowance) and ii) Payment of constituent Allowance to Political Parties represented in the Legislature. iii) Payment of grant in respect of the Political Party Fund Act (4 of 2008) Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer

23 44 45 Level of Planning Strategic Goal 1 Strategic Objective 1.1 Measurable Objective Planning Statement Indicator Statement Increase Approval efficiency and rating effectiveness of legislature support services Increased effectiveness and efficiency in the provision of member facilities and benefit Improved Facilities and Benefits rendered to Members Payments facilitated to political parties represented in the Legislature Actual Planned Achievement Target 2011/ /2013 Actual Achievement 2012/2013 Deviation from planned target to Actual Achievement 2012/2013 % compliance 100% 100% 100% No deviation with service levels Adherence to policy Submission of audited statements by political parties as required Adherence to Maintain Facilities and Policy policy provisions addressed in benefits were accordance to Received, considered and approved Political Parties audited statements. One remains outstanding at year end. policy Political Parties to submit statements All audited audited statewerments within received prescribed timeframes and presented to the Audit Committee for recommendation. Subsequent approval was granted. The acting Speaker made a ruling on the audited statements of one political party No Deviation No Deviation Comment on deviation Programme 3: Parliamentary Services a) Programme 3: Parliamentary Services provides for the rendering of overall procedural, administrative, information and language support services to the Legislature. The subprogramme structure provides for the rendering of; i) Procedural Services through the Table Services Unit and the Hansard Directorate ii) Legislation and Oversight Directorate including Committee, Research, NCOP and Library Services, and iii) Legal Services b) The key policy developments with regard to Programme 3 are as follows; Sub Programme Final Appropriation Actual Expenditure 2012/ /12 (Over) / Under Expenditure Final Appropriation Actual Expenditure (Over) / Under Expenditure i) A review of the current working procedures and systems regarding National Council of Provinces (NCOP) processes, including voting mandates and conferral of voting authority, may result in amendments to the current provisions of the Standing Rules and Orders and work processes; Facilities : Members and Political Parties R 000 R 000 R 000 R 000 R 000 R ,158 50,447 1,711 49,209 42,036 7,173 ii) iii) A review of the rendering of language services, in line with national and provincial policy guidelines and with a specific view towards improving accessibility to the records of the proceedings of the Legislature, may result in the expansion of current services rendered; The review of oversight and accountability models may impact on the current work processes and procedures of the administrative support services rendered to Portfolio Committees. iv) The development and implementation of policies and procedures regarding monitoring and compliance of the implementation of resolutions of the House may have an impact on the scope of service currently rendered by the Office of the Legal Advisor. 5.3 Procedural Services Division a) The Procedural Services Division is responsible for the rendering of support services in respect of the legislative, oversight and accountability functions of the House and its Committees. These services are rendered through the: i. Legislation and Oversight Directorate. ii. iii. Table Services Unit, and Hansard Directorate. Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer

24 46 47 Level of Planning Strategic Goal 1 Measurable Objective Measurable objective Level of Planning Strategic Objective 5.9 Level of Planning Strategic Goal 1 Strategic Objective 1.1 Planning Statement Improved accountability by the executive to the Legislature iro of service delivery Improved quality and focus of research in support of oversight Indicator Statement Actual Achievement 2011/2012 Research plan completed by target date Improved participation of the processes (increase Review NCOP Legislature in NCOP Member accountability in terms of lawmaking process reporting) Planning Statement Improved knowledge management and Hansard Services Planning Statement Improved accountability by the executive to the Legislature iro of service delivery Increased effectiveness of oversight for enhanced service delivery Number of signed collaboration agreements with research institutions Planned Target 2012/2013 No Progress Adopt Research Framework New Indicator New Indicator Indicator Statement Actual Achievement 2011/2012 Indicator Statement Actual Achievement 2011/2012 Improve on attendance by MPLs on Section 76 Bills Agreements with Research institutions Planned Target 2012/2013 Planned Target 2012/2013 Actual Achievement Deviation 2012/2013 from planned target to Actual Achievement 2012/2013 Research Plan adopted/customized to be in line with SOM Mandates received as per programme of NCOP and attended by MPLs No meeting convened with SALGA Comment on deviation No Deviation Research plan has been adopted. The Chairpersons Panel initiated a process whereby Sector Oversight Model will be included in the next period No Deviation 100% deviation Actual Achievement Deviation 2012/2013 from planned target to Actual Achievement 2012/2013 Actual Achievement Deviation 2012/2013 from planned target to Actual Achievement 2012/ % deviation Signed agreement with SALGA to be concluded in 2013/14 Comment on deviation Comment on deviation Measurable Objective Measurable objective Level of Planning Strategic Goal 1 Improved quality of oversight Improved functionality of Committees Planning Statement Improved accountability by the executive to the Legislature iro of service delivery Implementation of New Indicator the sector oversight model Level of reporting on local government performance Number of reports on the status of resolutions presented to the House by the governance assurance committee passed by the House Number of joint oversight initiatives (clusters, multiple committees) Number of committees with committee plans reflecting the new oversight model New Indicator Researchers assigned to track resolutions from all Committees and plenary of the House New Indicator New Indicator Number of committee performance cator New Indi reports Public participation New Indicator and petitions committee performance report by target date Improved quality New Indicator of reporting as per stakeholder rating Indicator Statement Actual Achievement 2011/2012 Adoption of the SOM Training at by MPLs and No deviation concept of SOMtended staff in Gauteng Municipal performance reports to be presented to the Legislature Fully implemented resolution on tracking mechanism by the target date Four joint oversight visits Committee plans for each committee SOM adopted and approved by the Rules & Orders Committee Municipal reports were presented to the Committee COGTA reports tabled with Committees. Public Accounts and SCOPA reports Reports tabled and adopted Arrangement concluded and implemented whereby all resolutions of Committees are submitted to Office of the Premier for distribution and reportback to Departments 53 Resolutions were tabled and adopted by the House 20 oversights visits undertaken Draft customization paper on SOM tabled. Rules & Orders Committee to consider adoption is the first quarter of 2013/14 All Committees Not achieved Committee performance report Not achieved by target date Committee Reporting Framework Planned Target 2012/2013 No Deviation Achieved Achieved Partly Achieved 100% Deviation 100% Deviation Reporting framework was not comation 100% Devipiled. Training was however conducted in Gauteng Actual Achievement Deviation 2012/2013 from planned target to Actual Achievement 2012/2013 Rollout is scheduled for next financial period Rollout of SOM model scheduled for next financial period Performance reporting to be introduced in the next financial period Strategy arranged to address fifteen outstanding petitions Comment on deviation Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer

25 48 49 Measurable Objective Increased effectiveness of the Hansard directorate in providinglanguage services to MPLs Ensuringthat in all public hearings; sittings etc., MPLs and the general public receive, spoken and sign language interpreting services. Development and expansion of legislative/parliamentary terminology and translation New Indicator Bringing into effect section 6(2) of the Constitution of the Republic of South Africa (Act 108 of 1996) Provided sign and spoken language interpreting during the sitting of the 25 July Provided spoken and sign language interpreting during sittings of 13 and 31 August Provided spoken and sign language interpreting during multiparty caucuses from 3;17;24; 25;27 August 2012, and 05 September Interpreting for committees on 03; 12; 22; 26; 30; 31 October Interpreting for committees on 6;7;8 November Interpreted during sittings on 13 and 15 November Rendered spoken language interpreting during No deviation 100% deviation Interpreting services during the State of the Province Address on 21 February 2013 and on 26 February 2013 during the reply. Interpreting services during Budget Day sitting(appropriation Bill). Interpreting services rendered during Budget Votes Roadshows: 14; 15;18;19;20;25;26; and 27 March Rescheduling of terminology seminar intended for next financial period Terminology development seminar was postponed due to budget votes Sub Programme Final Appropriation 2012/ /12 (Over) / Under Final Appropriation Actual Expenditure Expenditure Actual Expenditure (Over) / Under Expenditure Procedural Services R 000 R 000 R 000 R 000 R 000 R ,456 21, ,116 19,331 (215) Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaat Provinsiale Wetgewer

26 Programme 3 Sub programme: Legal Services 49 Level of Planning Planning Statement Strategic Improved Goal lawmaking that is responsive to the needs of the people of the Free State Strategic Increased Objective Legislature capacity of to pass laws Improved processing of laws before the Legislature Indicator Actual Planned Target Actual Achievement 2012/2013 Statement Achievement 2012/ /2012 Number of laws passed in the Free State that are responsive to the needs of the people Improved quality of law processing within the Legislature Measurable objective Mechanisms to proactively determine what legislation will appear before the Legislature New Indicator Formal mechanisms to re Free State Nature Conservation Bill [B072010]; Introduced the following bills: quest planned Free State Hospitals Amendment Bill [B092010]; legislation Free State Provincial and Local Houses of Traditional Leaders Bill developed [05A2008]; Traditional Courts Bill [B12012(s76 (2)]; National Health Amendment Bill [24B2011]. Free State Adjustment AppropriationBill [B042012]: 12, 20 and 27 November Further Education and Training Colleges Amendment Bill[24B2012]:24 October 2012: Departmental Briefing to NCOP; Public hearing on 06, 07 and 08 November 2012; Consideration of the report of public hearings: ; Final Mandate on 26 November Higher Education & Training Laws Amendment Bill[B23B12(s75)] Credit Rating Services Bill[112 (s75)] Financial Markets Bill [12B12(s75)] NEM Laws First Amendment Bill[B13B12(s76(1))] Taxation Laws Amendment Bill[B3412(s77 Tax Administration Laws Amendment Bill[B35B12(s75)] Repeal of Black Administration Act Amendment Bill[B4012(s75)] Division of Revenue Amendment Bill,2012: 01 November 2012: Briefing and Negotiating Mandate; Final Mandate on 12 November 2012 Committee on Health and Social Development: 12 October 2012: Public hearing on National Health Amendment Bill[24B2011] Appropriation Bill[012013] Special Adjustment Bill[B022013]; Finance Bill[B032013]; Protection of Personal Information Bill[B9B09(s75)]; Prevention & Combating of Trafficking In Persons Bill[7B10(s75)]; Superior Courts Bill[B7B11(s75)]; National Environmental Management Laws First Amendment Bill[B13B12(s76)]: Provincial briefing on 07 March 2013; Cooperatives Amendment Bill[B17B12(75 Spatial Planning & Land Use Management Bill [B14B12(s76)]. Division of Revenue Bill Bill[B022013)])]; Deviation Comment from planned target to on Actual deviation Achievement 2012/2013 No deviation

27 50 51 Level of Planning Planning Statement Strategic Objective Measurable objective Review legislation ideas and suggestions Improved provision of legal services to Improved legal opinion on legislation being processed by the Legislature Indicator Actual Planned Target Actual Achievement 2012/2013 Statement Achievement 2012/ /2012 Number New Indicator of Member bills initiated by the Institution and decide on specific legislation to be initiated Investigate constitutionality and relevance of our current provincial laws since 1994 support the lawmaking processes Percentage of MPL s expressing satisfaction with legal support services Number of legal opinions that are sound and accurate New Indicator No legal opinions issues One Investigate constitutionality and relevance of our current provincial laws since 1994 Outcome from the Speaker s is pending Draft Free State Procurement(Business interest of employees was to be considered) Review of provincial laws ongoing by appointed consultants Deviation Comment from planned target to on Actual deviation Achievement 2012/2013 Referred proposed bill not can be Delays yet passed by at the Legislatured to tribut the constitutionality of the proposed legisla Completeness of review questioned. No payment effected for services 13 opinions 20 legal opinions issued 153 % Positive Deviation tion Quality of the review was not to be satisfaction of the Legislature. Formal advertisement to be issued Level of Planning Planning Statement Indicator Actual Planned Target Actual Achievement 2012/2013 Statement Achievement 2012/ /2012 Number of quarterly and annual reports capturing the type of legal services provided Monthly and quarterly reports have been submitted Considered 3 rd and 4 th quarter nonfinancial reports of the Department. Committee on Public Accounts, Finance, Office of the Premier and Legislature: 23 May 2012: Considered resolutions of the Committee and Forensic Report on Nala Municipality. Annual Reports, 1nd and 2nd quarter, legislative and Petitions referred (Petition of Molefe and Matoane; Petition of Ste Committee on Cooperative Governance, Traditional Affairs & Human Settlement: 24 May 2012: Considered report on Negotiating Mandate on Traditional Courts Bill [B12012(s76 (2); Site visit Report to view open toilets; Report on Mphatlalatsane paving project and RDP houses in Viljoenskroon and Kroonstad; Annual Report for phen Moeketsi 2010/2011 financial year. Committee on Police, Roads and Transport: 24 May 2012: Considered 3 rd and 4 th quarterly nonfinancial report. Committee on Education, Sport, Arts, Culture and Recreation: 29 October and 26 November 2012: Consideration of Annual Reports for 2011/2012 financial year; Committee on Public Works and Economic Development, Environmental Affairs and Tourism: 16 October 2012: Annual Reports of Department of Public Works and Public Entities(excluding the FDC) Committee on Public Works and Economic Development, Environmental Affairs and Tourism: 17 October 2012: Annual Report ofdepartment of Economic Development, Environmental Affairs and Tourism. Committee on Agriculture and Rural Development: 11 October 2012: Consideration of Annual Reports of Departments for 2011/2012 financial year. Committee on Public Accounts, Finance, Office of the Premier and Legislature: 01 November 2012: Report of AuditorGeneral on Financial Statements & consideration of 1 st and 2 nd quarter expenditure reports of departments for 2012/2013 financial year Committee on Cooperative Governance, Traditional Affairs & Human Settlement: 23 October 2012: Consideration of Annual Reports for 2011/2012 financial year & 1 st quarter reports; and Site visit report on vacant sites in Sasolburg, water treatment plant in Parys and landfill/ dumping site in Parys. Committee on Health and Social Development: 01 November 2012: Consideration of the Report of the AuditorGeneral into the financial statements of the departments for the 2011/2012 financial year Committee on Health and Social Development: Consideration of the Annual Reports of the Departments of Health and Social Development for the financial year ended 31 March 2012: 18 & 19 February 2013 Committee on Standing Rules and Orders: Consideration of amendments to the Standing Rules and Orders 2009; Committee on Cooperative Governance, Traditional Affairs & Human Settlement: Petitions of Motloung&Malema ;Committee on Sport, Arts, Culture and Recreation: Consideration of 3rd quarterly reports of the Department for the financial ; Committee on Agriculture and Rural Development: Consideration of 3rd quarterly report for : Koffiefontein on 12 March Deviation Comment from planned target to on Actual deviation Achievement 2012/2013 No Deviation Sub Programme Final Appropriation Actual Expenditure 2012/ /12 (Over) / Under Expenditure Final Appropriation Actual Expenditure (Over) / Under Expenditure Legal Services R 000 R 000 R 000 R 000 R 000 R 000 2,739 2, ,464 2,491 (27)

28 52 53 PART C : GOVERNANCE 7. Portfolio Committees The Legislature appears before the Portfolio Committee on Public Accounts, Finance, Office of the Premier and the Free State Legislature. 8. SCOPA Resolutions 1. Introduction It would be appropriate to highlight the important link between governance principles and institutional strengthening. The Legislature supports principles of good governance, accountability and ethics. The Financial Management Act, Act 6 of 2009 confirms the Speaker as the Executive Authority and the Secretary to the Legislature as accounting officer. 2. Risk Management The Audit Committee coordinates an annual risk review. The internal auditor performed a risk review and presented the outcome to the Audit Committee and ultimately to the Secretary. Management continues to address identified risks. 3. Fraud and Corruption A Fraud Prevention Plan, linked to the risk management assessment is in place and is reviewed on a regular basis. Resolution no Subject Details Response by the Legislature Resolved Yes / No 2/2013 Tabling of resolutions Tabling of resolutions, but not communicated to the Office of the Premier The Secretary established a new procedure ensuring that all resolutions are submitted to the Office of the Premier Yes Legislature Building Slow progress regarding the Legislature Building The Secretary requested the Department of Public Works to make presentations to the Rules Committee No, the presentation by DPW has not been made Audit findings Audit findings listed in the Management Report to be resolved The CFO established an action plan and managed to resolve majority of findings reported Bulk of findings have been resolved 4. Minimising conflict of interest The Legislature has maintained a system to manage potential conflict of interest of employees and / or Members through requiring compliance with : Code of Conduct for Disclosure of Financial Interests of Staff Code of Conduct and Ethics for Members of the Free State Legislature, and Requiring potential service providers to complete prescribed declaration of interest forms The relationship between management and the representative trade union, NEHAWU, is governed by a formalized recognition agreement. 5. Code of Conduct Legal Services of the Legislature maintains code of conduct processes applicable to Members and staff. 6. Health Safety and Environmental Issues 9. Prior modifications to audit reports No modifications can be reported upon. 10. Internal Control Unit The organizational structure of the Legislature does not provide for a internal control unit. 11. Internal Audit and Audit Committee The Internal Audit has been outsourced to Mazars Auditors. A number of mandates were issued to Internal Audit, amongst other an audit on risk management, supply chain management and review on skills, training and development were performed. Internal audit reports were presented to the Audit Committee. The Audit Committee is constituted in terms of section 46 of the Finance Management Act of the Legislature, Act 6 of The Audit Committee meets quarterly and operates with a formal terms of reference. The Audit Committee has also adopted an Audit Charter for the period under review. Members and employees are housed at 41 Charlotte Maxeke Street, Bloemfontein. No concerns can be reported upon health, safety and environment.

29 54 55 Name 12. Audit Committee Report Qualifications Internal or external member Date appointed Report of the Date resigned No of meetings attended Adv J Lubbe Audit Committee B Iuris LLB Professional Qualifications: Advocate of the High Court of South Africa I am to present the report of the Audit Committee for the financial year ended 31 March Chairperson External Member April 2012 (renewed) Not applicable 7 Adv N van Heerden Bachelor of Arts BA(1989) Bachelor of Laws LLB (1991) Audit Committee Members and Attendance: The Audit Committee consists of the members listed hereunder and is required to meet four times per annum as per its approved terms of reference. During the reported year seven committee meetings were held. External Member April 2012 (renewed) Not applicable 7 Mr J Besnaar B Comm (Accounting) (2000) UCT Postgraduate Diploma in Accounting (PGDA) (2001) UCT Qualified Chartered Accountant (2004) External Member April 2012 (renewed) Not applicable 4 Name of Member Adv. J. LubbeSC(Chairperson) 7 Adv. N. van Heerden 7 Mr J. Besnaar 4 Audit Committee Responsibility Number of Meetings Attended The Audit Committee reports that it has adopted appropriate formal terms of reference as its audit committee charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein. The Audit Committee also reports that it has complied with its responsibilities arising from sections 46 and 47 of the Financial Management of the Free State Provincial Legislature Act, Act 6 of The Committee s execution of its functions and responsibilities manifested itself as follows; a) A meeting was convened on 29 April 2013 to consider the annual financial statements of the Legislature for the 2012/13 period. b) The Internal Audit unit was outsourced for the reported period. The internal auditor reported on all assignments to the Audit Committee. c) Audited statements of political parties represented in the Legislature were considered and approved. The Audit Committee facilitated interventions into the financial administration of a political party. d) The following internal audit assignments were issued to the Internal Auditor: (i) Information Technology (ii) Governance Review including policies (iii) Followup of prior year findings (iv) Predetermined Objectives (PDO s) (v) Supply Chain Management (vi) Human Resources Recruitment process including contracts and job descriptions e) A three year rolling internal audit plan was updated. Reviewed and discussed the audited annual financial statements to be included in the annual report.

30 56 57 f) Key control reports were presented quarterly by the Office of the AuditorGeneral to the Audit Committee. g) Amendments were made to the terms of reference of the Audit Committee The effectiveness of internal control Internal Audit was tasked by the Audit Committee to perform a number of projects, emanating from the audit plan. The system of internal control over financial reporting for the period under review complied with minimum requirements. The quality of in year management and monthly/quarterly reports submitted in terms of the Financial Management of the Free State Provincial Legislature Act, Act 6 of 2009 and the Division of Revenue Act is supported. The Audit Committee is satisfied with the content and quality of reports prepared and issued by the Accounting Officer of the Legislature during the year under review. Evaluation of Financial Statements The Audit Committee has: Reviewed and discussed the audited annual financial statements to be included in the annual report. Chairperson of the Audit Committee 31 March 2013 Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer

31 58 59 SECTION Six: 6PROGRAM PERFORMANCE Priorities: >Report on implementation of reviewed organisational structure. >Develop and implement an HR Strategy and compiled a related report. Employers need a people vision that will support the vision of business >Implementation of Members Capacity building Plan and Related Report compiled. PART D Human Resource Management 2. Set HR priorities for the year under review and the impact of these priorities Ensure that MPL s are empowered to can effectively and efficiently perform their duties. >Implementation of staff capacity building plan and related report is compiled. As above. >Reviewed PMS policy and strategy and implementation of performance appraisal. Introduction: Powerful motivational tool that contributes significantly to improved performance. HR matters commonly experienced by employers includes establishing productivity, recruiting employees, arranging and carrying out training, succession planning, conflict resolution, safety and benefits etc. Challenges: Finding applicants who are available and qualified to fill the position and choosing the applicant who best qualified for the position involves the following: 1.Overview of HR matters at the department >Inadequate empowerment of leadership that should ensure effectiveness of capacity building initiatives. >Lack of policy to guide the institution with regard to succession planning. >Failure to ensure that Performance Management System is in place. >Lack of Human Resource Management System contributes to high manual workload and sometimes inaccurate work. 3. Workforce planning framework and key strategies to attract and recruit a skilled and capable workforce. 4. Employee Performance Management Framework >Determining the type of talent required to execute your business strategy, >Quantifying the future needs of our organisation, >Defining and prioritizing talent gaps, >Identifying and documenting the actions and investment needed to align our people strategy with business objectives. Performance Management System not yet in place. Policy and Framework are not yet adopted. Free State Legislature Employee Wellness Programmes include the following 4 pillars of Employee Health and Wellness Strategic Framework: 5. Employee Wellness Programmes >HIV/AIDS Programme Information sessions and lay counselors training >Wellness ManagementTrauma Bereavement, Psychosocial Counseling Services >Health Management > Occupational Health and Safety.

32 60 61 Policy Development Personnel costs by salary bands, 2012/13 1.Highlight Achievements All employees have Admin Policy ManualPolicies reviewed at least once in a year because: Improves risk management in the institution; makes life easier for employees since rules and code of conduct are outlined and employer able to analyses challenges and priorities action. Insufficient planning to ensure people rewarded with series of promotions to keep them within the organisation until they themselves have reached a senior post. Salary bands Personnel Expenditure (R 000) % of total personnel cost Lower skilled (Levels 67) 2, Skilled (Levels 810) 7, Highly skilled production (Levels 1114) Highly skilled supervision (Levels 1516) 20, , Average personnel cost per employee (R 000) Senior management (Levels 1723) 12, Challenges faced by the department >Inefficient evaluation of how the organisation performsself assessment and selfreflect. > Failure to implement HR System. > Lack of succession planning within the organisation. > Failure that Performance Management system is in place. Total 47,837 The following tables provide a summary per programme (Table 1.3) and salary bands (Table 1.4), 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. 3.Future HR Plans Assessing current HR capacity; Identifying HR requirements; Gap Analysis; Developing HR strategy to support organisational strategy. 6. Expenditure Personnel expenditure 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) Program 1 128,414 29, % 361 Program 2 50,447 Program 3 23,650 18, % 577 Total 202,511 47, % 393

33 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme, 2012/ Employment and vacancies Programme Salaries Overtime Amount (R 000) Salaries as a % of personnel cost Amount (R 000) Overtime as a % of personnel cost Home Owners Allowance Amount (R 000) HOA as a % of personnel cost Medical Assistance Amount (R 000) Medical Assistance as a % of personnel cost Program 1 18, , , Program 2 Program 3 12, Total 30, , , Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band, 2012/13 Salary Bands Salaries Overtime Lower skilled (Levels 67) Amount (R 000) Salaries as a % of personnel cost Amount (R 000) Overtime as a % of personnel cost Home Owners Allowance Amount (R 000) HOA as a % of personnel cost Medical Assistance Amount (R 000) Medical Assistance as a % of personnel cost 1, Skilled (Levels 810) 4, Highly skilled production (Levels 1114) Highly skilled supervision (Levels 1516) Senior management (Levels 1723) 13, , , Total 30, , , 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 Employment and vacancies by Programme, 31 March 2013 Programme Number of posts on approved establishment Number of posts filled Vacancy Rate Number of posts filled additional to the establishment Total % Employment and vacancies by salary bands, 31 March 2013 Salary band Number of posts Number of posts filled Vacancy Rate Lower skilled (Levels 12) Gr 910 Skilled (Levels 35) Gr 8 Highly skilled production (Levels 68) Gr 7 Highly skilled supervision (Levels 912) Gr 56 Senior management (Levels 1316) Gr % Number of posts filled additional to the establishment % 3 Intern % % % 5 Learners Total % 8 The information in each case reflects the situation as at 31 March Employment and vacancies by critical occupations, 31 March 2013 Critical occupation Number of posts on approved establishment Number of posts filled Vacancy Rate Number of posts filled additional to the establishment Total % 8

34 Employment and vacancies by salary bands, 31 March Profile of employees who have salary levels higher than those determined by job evaluation Salary band Lower skilled (Levels 12) Gr 910 Skilled (Levels 35) Gr 8 Highly skilled production (Levels 68) Gr 7 Highly skilled supervision (Levels 912) Gr 56 Senior management (Levels 13 16) Gr 14 Number of posts on approved establishment Number of jobs evaluated % of posts evaluated by salary bands Posts Upgraded number Posts upgraded % of posts evaluated Posts downgraded number Posts downgraded % of posts evaluated % 2 17% % % % 10 7% % 1 1% Total % 13 9% Profile of employees whose positions were upgraded due to their posts being upgraded Beneficiary African Asian Coloured White Total Female 2 2 Male Total 6.3 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 table provides a summary of turnover rates by salary band (Table 3.1) Annual turnover rates by salary band for the period 1 April 2012 to 31 March 2013 Salary Band Lower skilled (Levels 12) Gr 910 Skilled (Levels 35) Gr Number of employees per band as on 1 April 2012 Appointments and transfers into the department Terminations and transfers out of the department 2 4 Turnover rate % 30 0 Beneficiary African Asian Coloured White Total Female Male Total Employees with salary levels higher than those determined by job evaluation by occupation Occupation Number of employees Job evaluation level Remuneration level Reason for deviation Deputy editor Evaluation Highly skilled production(levels 68) Gr 7 Highly skilled supervision(levels 912) Gr 56 Senior Management Service Band A Gr 14 Senior Management Service Band B Senior Management Service Band C % Library Evaluation Senior personnel officer Table assistan Evaluation Evaluation Senior Management Service Band D Total % Percentage of total employed 3% Annual turnover rates by critical occupation Critical occupation 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 Total %

35 Reasons why staff left the Legislature Total number of employees (including employees with disabilities) in each of the following Termination Type Number % of total Death 2 1% Resignation 1 1% Expiry of contract (additional) (9) Dismissal operational changes Dismissal misconduct Dismissal inefficiency Discharged due to illhealth Retirement Transfers to other Public Service Departments Other Total number of employees who left as a % of the total employment 3 98% 6.4 Employment equity The tables in this section are based on the formats prescribed by the Employment Equity Act, 55 of occupational bands as on 31 March 2013 Occupational Bands Male Female African Coloured Indian White African Coloured Indian White Total Top Management Gr Senior Management Gr Professionally qualified and experienced specialists and midmanagement Gr 56 Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents Gr 78 Semiskilled and discretionary decision making Gr ` Unskilled and defined decision making Total Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March Recruitment for the period 1 April 2012 to 31 March 2013 Male Female Occupational Bands African Coloured Indian White African Coloured Indian White Total Top ManagementGr 13 Occupational categories (SASCO) Legislators, senior officials and managers Gr 14 Male Female Total African Coloured Indian White African Coloured Indian White Professionals Gr Technicians and associate professionals Gr Clerks Gr Service and sales workers Skilled agriculture and fishery workers Craft and related trades workers Senior Management Gr 4 Professionally qualified and experienced specialists and midmanagement Gr 56 Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents Gr 78 Semiskilled and discretionary decision making Gr 910 Unskilled and defined decision making Interns 3 Leareners Plant and machine operators and assemblers Elementary occupations Total Total Employees with disabilities Employees with disabilities

36 Promotions for the period 1 April 2012 to 31 March Disciplinary action for the period 1 April 2012 to 31 March 2013 Occupational Bands Top Management Senior Management Male Female African Coloured Indian White African Coloured Indian White Total Male Female Total African Coloured Indian White African Coloured Indian White Disciplinary action Professionally qualified and experienced specialists and midmanagement Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents Semiskilled and discretionary decision making Unskilled and defined decision making Total 0 Employees with disabilities Skills Development for the period 1 April 2012 to 31 March 2013 Occupational categories Male Female Total African Coloured Indian White African Coloured Indian White Management (Grade 01 to 05) Supply Chain Training SARSPayroll 2012/ CASE Ware Training Terminations for the period 1 April 2012 to 31 March 2013, see 3.1 & 3.2 Occupational Bands Top Management Gr13 Senior Management Gr 4 Professionally qualified and experienced specialists and midmanagement Gr 56 Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents Gr 78 Semiskilled and discretionary decision making Gr 910 Unskilled and defined decision making Total Employees with disabilities Male Female African Coloured Indian White African Coloured Indian White Total GRAP Training Labour Law for HR 1 1 Office of the Secretary Security HIV/AIDS Programme 5 5 Drug and Alcohol 8 8 Awareness Occupational and Safety Speakers Office Health 6 6 Office Admin Skills 1 1 Office of Legal Advisor HIV/AIDS Programme 1 1 Drug and Alcohol Awareness Finance Division 1 1 HIV/AIDS Programme 4 4 Drug and Alcohol 2 2 Awareness Supply Chain GRAP Training CASE Ware Training 1 1 SARS Payroll 2012/ Procurement HIV/AIDS Programme 1 1 2

37 A collective agreement made for annual salary increments for 7%concluded with NEHAWU and no salary adjust Drug and Alcohol 1 1 ments we made between 1 April 2012 to 31 March Awareness Deputy Secretary s Office b) Misconduct & disciplinary hearings finalized, 1 April March 2013 Hansard HIV/AIDS Programme Drug and Alcohol Awareness Health & Safety Workshop Legislation / Oversight Managing Ill Health & Poor Performance Researchers Drug and Alcohol Awareness HR Management 1 1 HIV/AIDS Programme Drug and Alcohol Awareness Health & Safety Workshop Managing Ill Health & Poor Performance Labour Law for HR Managers Curriculum and Material Dev Institutional Support HIV/AIDS Programme Outcomes of disciplinary hearings Number % of Total Correctional counseling Verbal warning Written warning Final written warning Suspended without pay Fine Demotion Dismissal 1 1 Not guilty Case withdrawn Total 1 1 c) Types of misconduct addressed at disciplinary hearings Types of misconduct Number % of Total Absent without leave 1 1 Total 1 1 d) Grievances lodged for the period 1 April 2012 to 31 March 2013 No grievances were lodged during the period under review. Drug and Alcohol Awareness Occupational and Safety Health Managing Ill Health & Poor Performance Public Participation Drug and Alcohol Awareness PA s & Admin Assists e) Disputes lodged for the period 1 April 2012 to 31 March 2013 No disputes were lodged during the period under review. f) Strike actions for the period 1 April 2012 to 31 March 2013 No strike actions took place during the period under review. a) Precautionary suspensions for the period 1 April 2012 to 31 March 2013 There were no precautionary suspensions during the period under review. HIV/AIDS Programme Drug and Alcohol Awareness 3 3 Office Admin Total Labour Relations a) Collective agreements, 1 April 2012 to 31 March Skills Development a) Training and Development Detailsof training and development initiatives undertaken during the period under review are set out in paragraph a) StudyAid The annual review of studyaid granted to employees was concluded during the 4 th quarter of the financial year. The 2012/13 StudyAid Review Report was considered and approved by the Audit Committee.

38 72 73 This section highlights the efforts of the Legislature with regard to skills development Training provided for the period 1 April 2012 to 31 March Training needs identified 1 April 2012 to 31 March 2013 Occupational Categories Legislators, senior officials and managers Gender Female Male Number of employees as at 1 April 2012 Learnerships Training needs identified at start of reporting period Skills Pro Other forms of training Total Occupational Category Number of Gender Employees as at 1 April 2013 Male 2 Learnerships Training provided within the period Skills Programmes and other short courses Investment Workshop Total COBIT King 111 and IT Governance Professionals Technicians and associate professionals Female Male Female Male Legislators. Supply Chain Training HIV/AIDS Programme IT Service Management Clerks Service and sales workers Female Male 2 Female Female 4 Male 13 Female 3 Male Senior Officials and Managers Female 5 COBIT 4.1 GRAP Training Investment Workshop Labour Law for HR Managers SARS Payroll 12/13 year 5 Female 11 Male 2 Drugs and Alcohol Awareness Workshop Sub Total Female Male Total

39 74 75 Drug and Alcohol Awareness Supply Chain Training Occupational Health and Safety Internship * 1 Male (Hansard; Translation) HIV/AIDS Programme IT Service Management Drug and Alcohol Awareness Male 2 GRAP Training Curriculum and Material Development Workshop Labour Law for HR Managers 2 Male 12 * 2 Females (Hansard Translation) Learners COBIT 4.1 Occupational Health and Safety GRAP Training Managing Illhealth and poor performance 12 Professionals Female 4 GRAP Training Supply Chain Training Drug and Alcohol Awareness Managing IllHealth and poor performance in the workplace 4 Technicians and associate professionals *1 Female (HRM) * 1 Female (Public Participation) Investment Workshop Occupational Health and Safety Labour Law for HR Managers Bonitas Medical Fund 2013 Product Training Labour Law for HR Managers HIV/AIDS Programme HIV/AIDS Programme CASE Ware Training Female 11 Drug and Alcohol Awareness Investment Workshop CASE Ware Training 11 Labour Law for HR Managers

40 Leave utilisation for the period 1 January 2012 to 31 December 2012 Drug and Alcohol Awareness Clerks Service and sales workers Male 10 Female 7 Male 2 Female 9 HIV/AIDS Programme Occupational Health and Safety Drug and Alcohol Awareness HIV/AIDS Programme Office Admin Skills Drug and Alcohol Awareness HIV/AIDS Programme Drug and Alcohol Awareness HIV/AIDS Programme Sick leave, 1 January 2012 to 31 December 2012 Salary Band Lower skilled (Levels 12) gr 910 Skilled (Levels 35) GR 8 Highly skilled production (Levels 68) GR 7 Highly skilled supervision (Levels912) GR 56 Senior management (Levels 1316) gr 14 Total days % days with medical certification Number of Employees using sick leave % of total employees using sick leave Annual Leave, 1 January 2012 to 31 December 2012 Average days per employee % 33 30% % 28 25% % 11 10% % 20 18% % 2 2% 3 Total % 94 85% 423 Estimated Cost (R 000) 6.7 Injury on duty, 1 April 2012 to 31 March 2013 Nature of injury on duty Number % of Total Required basic medical attention only TOTAL 64 Temporary Total Disablement Permanent Disablement Fatal Total Salary Bands Total days taken Average per employee Lower skilled (Levels 12) GR Skilled Levels 35) GR Highly skilled production (Levels 68) GR7 Highly skilled supervision(levels 912) GR 56 Senior management (Levels 1316) GR Total % Male African Coloured Indian White African Female Coloured Indian White Total Disciplinary action

41 Capped leave, 1 January 2012 to 31 December 2012 FSL Employee Wellness Programme covers the 4 Pillars of Employee Health and Wellness Strategic Framework: Salary Bands Lower skilled (Levels 12) GR 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 HEALTH PROMOTION AND HIV/AIDS PROGRAMMES Question Yes No Details, if yes 1. Has the department designated a member of the SMS to implement the provisions contained in Part Vl of Chapter 1 of the Public Service Regulations, 2001? If so, provide his/her position. 2. Doesthe department have a dedicated unit or has it designated specific staff member to promote health and wellness of your employees? If so, indicate the number of employees involved in this task and the annual budget that is available for this purpose? Total days of capped leave taken Yes Average number of days taken per employee Average capped leave per employee as at 31 December Skilled Levels 35) GR Highly skilled production (Levels 68) GR 7 Highly skilled supervision(levels 912) GR 56 Senior management (Levels 13 16) GR Total N/A The FSL has employed a Social Responsibility Coordinator (SRC) who is responsible for implementation of Employee health and wellness programmes in the institution. There is no specified budget for this programme The unit consists of SRC and EAP officer though only the post of SRC is filled at present. 3. Has the department introduced an Employee Assistance or Health Promotion Programme for your employees? If so, indicate elements/services 4. Has the department established (a) committee(s) as contemplated in Part iv E.5 e of Chapter 1 of Public Service Regulations,2001? If so, please provide the names of members of the Committee and the stakeholders that the represent 5. Has the department reviewed its employment policies and practices to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so reviewed. 6. Has the department introduced measures to protect HIVpositive employees or those perceived to be HIV positive from discrimination? If so, list key element of these measures. 7. Does the department encourage its employees to undergo Voluntary counseling and Testing? If so, list the results you have achieved Yes No Yes Yes Yes HIV/AIDS Programmeemphasis on HIV/ AIDS information session, Lay Counselors TrainingTraining of Peer Educators, reduction of number of infections Wellness Managementservices include Trauma/ Bereavement and PsychoSocial Counseling Services. Health Management Reduction of burden of diseases in the workplace. Occupational Health and Safety The policy on OHS is not yet in place, but safety in the workplace is emphasized No committee established yet because we are still working on the Policy Formulation HIV/AIDS Workplace Policy HRM Policy. EAP Policy(Draft ) Occupational Health and Safety Policy (Still working on the document) Adjustment of policies: E.g. Leave policyspecial leave with regard to employee who suffer from terminal illness; timeoff for Clinic appointments and changes in hours of work and in start/finish time. Labour Relations Act: Code of Good Practice; aspects on HIV/AIDS and Employment The EAP unit tries by all means to encourage people to go for HIV/Aids Counseling and Testing (HCT). Only a few people go for testing even though benefits for testing are always explained. New Start did HCT for us September 2012 during Wellness Sports Day: and results were as follows. 10 people tested. 7FEMALES &3 Males. 2: FEMALES TESTED POSI TIVE and 1:Male tested positive

42 Has the department developed measures to monitor and evaluate the impact of its health promotion programme? If so list these measures. Yes Evaluation forms and attendance registers are kept during health promotion sessions to evaluate the impact of the programme and check views of the participants on what should or can be added to improve the programme. E.g recently held Men s Health Session Labour Relations Misconduct of Disciplinary Hearings finalised Written Warning x Types of misconduct addressed at Disciplinary Hearings August 2012=Insubordination and Bringing the Legislature into Disrepute November 2012= Dishonesty: Unauthorised possession of the property of the Legislature.

43 82 83 PART: E Financial Information Table of Contents Report of the Auditor General (Part of Annual Report) 84 Appropriation Statement 88 Notes to the Appropriation Statement 98 Statement of Financial Performance 1080 Statement of Financial Position 102 Statement of Changes in Net Assets 103 Cash Flow Statement 104 Notes to the Annual Financial Statements (including Accounting policies) 105 Disclosures Notes to the Annual Financial Statements 115 Annexures 138

44 84 85 REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS REPORT OF THE AUDITORGENERAL 9. 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 10. I performed procedures to obtain evidence about the usefulness and reliability of the information in the annual performance report as set out on pages xx to xx of the annual report. REPORT OF THE AUDITORGENERAL TO THE FREE STATE LEGISLATURE ON VOTE NO. 2: FREE STATE LEGISLATURE REPORT ON THE FINANCIAL STATEMENTS Introduction 1. I have audited the financial statements of the Free State Legislature set out on pages xx to xx, which comprise the appropriation statement, the statement of financial position as at 31 March 2013, the statement of financial performance, statement of changes in net assets and the cash flow statement for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information. Accounting officer s responsibility for the 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 the National Treasury and the requirements of the Financial Management of the Free State Provincial Legislature Act of South Africa, 2009 (Act No. 6 of 2009) (FSPLA), 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. AuditorGeneral 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 entity 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 entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion 6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Free State Legislature 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 FSPLA. 11. 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 (FMPPI). 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). 12. The material findings are as follows: Usefulness of information 13. Section 54(3)(d) and (g) of the FSPLA require that the annual performance plan should form the basis for the annual report, therefore requiring consistency of objectives, indicators and targets between planning and reporting documents. A total of 23% of the reported indicators and 63% of the reported targets are not consistent with the objectives, indicators and targets as per the approved annual performance plan. This is due to 14. The FMPPI requires that indicators/measures should have clear unambiguous data definitions so that data is collected consistently and is easy to understand and use. A total of 24% of the indicators were not well defined in that clear, unambiguous data definitions were not available to allow for data to be collected consistently. This was due to Compliance with laws and regulations 15. I performed procedures to obtain evidence that the entity had complied with applicable laws and regulations regarding financial matters, financial management and other related matters. My findings on material noncompliance 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: Strategic planning and performance management 16. Contrary to section 14(2) of the FSPLA, various objectives that were included in the annual performance plan could not be linked to the strategic plan, while objectives that were included in the strategic plan could not be linked to the annual performance plan. Internal control 17. I considered internal control relevant to my audit of the financial statements, the annual performance report and compliance with laws and regulations. The matter reported below under the fundamentals of internal control is limited to the significant deficiencies that resulted in the findings on the annual performance report and the finding on compliance with laws and regulations included in this report. Additional matter 7. I draw attention to the matter below. My opinion is not modified in respect of this matter. Financial reporting framework 8. 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.

45 Financial and performance management 18. The accounting officer did not ensure that staff was adequately trained and skilled to formulate indicators/measures to achieve the strategic goals of the Free State Legislature. Inadequate review and monitoring processes existed to ensure that the information disclosed in the annual performance plan, the quarterly reports and the annual performance report are consistent and fully aligned. Bloemfontein 31 July 2013 Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer

46 88 APPROPRIATION STATEMENT APPROPRIATION STATEMENT 89 Appropriation per programme 2012/ /12 Appropriation per programme 2012/ /12 APPROPRIATION STATEMENT 1. ADMINISTRATION Final Appropriation Final Appropriation Expenditure Adjusted Final Final Actual Shifting of Actual as % of Appropriatiopriatiopriatioditure Virement Appro Variance Appro Expen Funds Expenditure final appropriation R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Actual Expenditure Actual Expenditure TOTAL (brought forward) 205, , , ,588 Reconciliation with statement of financial performance ADD Departmental receipts 1, Current payment 69, ,852 73,067 72, % 71,819 71,811 Transfers and 1, ,902 1,923 (21) 101.1% 1,452 1,452 subsidies Payment for capital 34,898 (675) 34,223 33, % 39,805 39,456 assets Payment for 73 (73) 10 (10) 49 financial assets Actual amounts per statement of financial performance (total revenue) 207, ,194 Actual amounts per statement of financial performance (total expenditure) 202, , ,340 2, , , , , FACILITIES FOR MEMBERS AND POLITICAL PARTIES Current payment 3,978 (1,775) 2,203 2, % 3,197 2,836 Transfers and subsidies 49,955 49,955 48,259 1, % 46,012 39,200 53,933 (1,775) 52,158 50,447 1,711 49,209 42, PARLIAMENTARY SERVICES Current payment 24,800 (672) 24,128 23, % 21,131 21,640 Payment for capital assets 472 (405) % ,272 (1,077) 24,195 23, ,580 21,822 Subtotal 185, , ,632 2, % 183, ,646 Statutory Appropriation Current payment 20,340 20,340 19, % 19,541 18,942 TOTAL 205, , ,511 3, % 203, ,588

47 90 91 APPROPRIATION STATEMENT APPROPRIATION STATEMENT Appropriation per economic classification 2012/ /12 Statutory Appropriation 2012/ /12 Direct changes against the National/Provincial Revenue Fund Shifting of Funds Virement Final Appropriation Actual Expenditure Variance Expenditure as % of final appropriation Shifting Final Expenditure Final Adjusted Actual Actual of Virement Appro Variance as % of final Appropriation Appropriation Expenditure Expenditure Funds Tpriation appropriation R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Adjusted Appropriation Final Appropriation Actual Expentditure Current payments Compensation of employees Goods and services Transfers and subsidies Departmental agencies and accounts 52,394 (3,442) (672) 48,280 47, % 65,504 64,281 45,963 4,078 1,077 51,118 50, % 50,183 50,948 49,955 49,955 48,259 1, % 46,012 39,200 List all direct charges against the Member of executive committee / parliamentary officers R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R ,340 20,340 19, % 19,541 18,942 Total 20,340 20,340 19, % 19,541 18,942 Universities and technikons Nonprofit institutions Households Gifts and Donations 56 (45) % 529 (288) % , ,554 1,671 (117) 107.5% 1,346 1, Payments for capital assets Buildings and other fixed structures Machinery and equipment Software and other intangible assets 32,500 32,500 32, % 38,498 38,498 2,549 (370) (405) 1,774 1, % 1,728 1, (305) % Payments for financial assets 73 (73) 10 (10) 49 Total 185, , ,632 2, % 203, ,588

48 92 APPROPRIATION STATEMENT APPROPRIATION STATEMENT 93 DETAIL PER PROGRAMME 1: ADMINISTRATION PROGRAMME 1: ADMINISTRATION Shifting of Funds Virement Variance 2012/ /12 Expenditure as % of final appropriation R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R OFFICE OF THE SPEAKER Current payment 11,223 2,653 13,876 13, % 17,829 17,482 Transfers and subsidies Payment for capital assets 32,920 (342) 32,578 32, % 38,802 38,498 PROGRAMME 1 Economic classification Current payments Compensation of employees Shifting of Funds Virement 2012/ /12 Variance Expenditure as % of final appropriation Detail per subprogramme Adjusted Appropriation Final Appropriation Actual Expenditure Final Appropriation Actual Expenditure Adjusted Appropriation Final Appropriation Actual Expenditure Final Appropriation Actual Expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R ,207 (1,935) 29,272 29, % 48,906 47,383 Goods and services 38,372 2,571 2,852 43,795 43, % 42,453 43, OFFICE OF THE SECRETARY Current payment 23,555 (4,173) 19,382 19, % 17,870 18,869 Transfers and subsidies 1, ,897 1,923 (26) 101.4% 1,361 1,361 Payment for capital assets 867 (805) (8) 112.9% FINANCIAL MANAGEMENT Current payment 21,257 2,807 2,852 26,916 26, % 23,778 23,797 Payment for capital assets ,362 1, % Payment for financial assets 73 (73) 10 (10) CORPORATE SERVICES Current payment 13,544 (651) 12,893 13,029 (136) 101.1% 12,342 11,663 Payment for capital assets 641 (420) % Total 106,340 2, , , % 113, ,788 Transfers and subsidies to: Universities and technikons 56 (45) % Nonprofit institutions 529 (288) % Households 1, ,554 1,671 (117) 107.5% 1,346 1,367 Gifts and donations Payment for capital assets Buildings and other fixed structures Machinery and equipment Software and other intangible assets Payments for financial assets 32,500 32,500 32, % 38,498 38,498 2,077 (370) 1,707 1, , (305) % (73) 10 (10) 49 Total 106,340 2, , , % 132, , / /12

49 94 APPROPRIATION STATEMENT APPROPRIATION STATEMENT 95 DETAIL PER PROGRAMME 2:FACILITIES FOR MEMBERS AND POLITICAL PARTIES DETAIL PER PROGRAMME 3:PARLIAMENTARY SERVICES 2.1FACILITIES AND BENEFITS TO MEMBERS Shifting of Funds Virement 2012/ /12 Variance Expenditure as % of final appropriation R 000 R 000 R 000 R 000 R 000 R 000 % Rt 000 R 000 Current payment 3,978 (1,775) 2,203 2, % 3,197 2,836 Detail per subprogramme Adjusted Final Actual Expenditure Final Actual Shifting Appropriatiopriatioditure appropriation priation diture Virement Appro Expen Variance as % of final Appro Expen of Funds R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R PROCEDURAL SERVICES Current payment 21, ,447 21, % 18,722 19,199 Payment for capital assets 2012/ / (405) 9 10 (1) 111.1% POLITICAL SUPPORT SERVICES Transfers and subsidies 49,955 49,955 48,259 1, % 46,012 39,200 Total 53,933 (1,775) 52,158 50,447 1, % 49,209 42, LEGAL SERVICES Current payment 3,443 (90) (672) 2,681 2, % 2,409 2,441 Payment for capital assets % Total 25,272 (1,077) 24,195 23, % 21,580 21,822 PROGRAMME 2: FACILITIES FOR MEMBERS AND POLITICAL PARTIES 2012/ /12 PROGRAMME 2 Economic classification Current payments Detail per subprogramme Adjusted Appropriation Final Appropriation Actual Expenditure Final Appropriation Actual Expenditure 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 Goods and services 3,978 (1,775) 2,203 2, % 3,197 2,836 Transfers and subsidies to: Departmental agencies and accounts 49,955 49,955 48,259 1, % 46,012 39,200 Total 53,933 (1,775) 52,158 50,447 1, % 49,209 42,036

50 96 97 APPROPRIATION STATEMENT APPROPRIATION STATEMENT DETAIL PER PROGRAMME 3:PARLIAMENTARY SERVICES 2012/ /12 PROGRAMME 3 Economic classification Shifting of Funds Virement Variance Expenditure as % of final appropriation Adjusted Appropriation Final Appropriation Actual Expenditure Final Appropriation Actual Expenditure Current payments Compensation of employees R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R ,187 (1,507) (672) 19,008 18, % 16,598 16,898 Goods and services 3,613 1,507 5,120 5, % 4,533 4,742 Payment for capital assets Machinery and equipment 472 (405) % Software and other intangible assets Total 25,272 (1,077) 24,195 23, % 21,580 21,822

51 98 99 NOTES TO THE APPROPRIATION STATEMENT NOTES TO THE APPROPRIATION STATEMENT 1. Detail of transfers and subsidies as per Appropriation Act (after Virement): Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (AH) to the Annual Financial Statements. 4.2 Per Economic classification Final Appropriation Current payments Actual Expenditure Variance Variance as a % of Final Appropriation R 000 R 000 R 000 R 000 Compensation of employees 68,620 67, % 2. Detail of specifically and exclusively appropriated amounts voted (after Virement): Goods and services 51,118 50, % Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements. 3. Detail on payments for financial assets Detail of these transactions per programme can be viewed in the note onpayments for financial assets to the Annual Financial Statements. Transfers and subsidies Departmental agencies and accounts 49,955 48,259 1,696 3% Universities and technikons % Nonprofit institutions % Households Gifts and donations 1, , % 100% 4. Explanations of material variances from Amounts Voted (after Virement): 4.1 Per Programme Final Appropriation Actual Expenditure Variance R 000 Variance as a % of Final Appropriation Administration 109, , % Payments for capital assets Buildings and other fixed structures 32,500 32, % Machinery and equipment 1,774 1, % Software and other intangible assets % Appropriation for the remuneration of members 20,340 19, % Payments for financial assets % The variance of 1% relates to postponed appointments of critical posts as well as a recorded under spending of 1% to contractors of the new Legislature building. The variance under households relates to study aid awarded by the office of the speaker. The variance of 2% relates to the fact that the post of Speaker became vacant during the reported period, with the Deputy Speaker who has been acting ever since no acting allowance has been paid to her. The resignation of a Member, whereby the filling of the seat was not concluded immediately, also attributed to the under spending. Facilities & Benefits for members & political parties 52,158 50,447 1,711 3% The variance of 3% relates to a forfeture of a grant to a political party, due to a negative audit to opinion. Parliamentary services 24,195 23, % The variance of 2% relates to the vacant post of legal advisor, which was busgeted for in full, but filling of vacancies have only been addressed recently.

52 100 STATEMENT OF FINANCIAL PERFORMANCE STATEMENT OF FINANCIAL PERFORMANCE 101 PERFORMANCE R 000 R 000 REVENUE Annual appropriation 1 185, ,865 Statutory appropriation 2 20,340 19,541 Departmental revenue 3 1, Aid assistance ,845 TOTAL REVENUE 207, ,965 EXPENDITURE Current expenditure Compensation of employees 5 67,716 64,281 Goods and services 6 50,775 50,948 Aid Assistance 4 1,716 Total current expenditure 120, ,229 Transfers and subsidies Transfers and subsidies 8 50,182 40,672 Aid assistance 173 Total transfers and subsidies 50,355 40,672 Expenditure for capital assets Tangible capital assets 9 33,812 39,616 Software and other intangible assets Total expenditure for capital assets 33,828 39,638 Payments for financial assets TOTAL EXPENDITURE 204, ,588 SURPLUS/(DEFICIT) FOR THE YEAR 2,783 12,377 Reconciliation of Net Surplus/(Deficit) for the year Voted funds 3,374 7,818 Annual appropriation 3,374 7,818 Departmental revenue and NRF Receipts 14 1, Aid assistance 4 (1,823) 3,845 SURPLUS/(DEFICIT) FOR THE YEAR 2,783 12,377

53 STATEMENT OF FINANCIAL POSITION STATEMENT OF CHANGES IN NET ASSETS POSITION ASSETS R 000 R 000 NET ASSETS R 000 R 000 Current assets 36,414 33,619 Cash and cash equivalents 10 34,685 32,547 Prepayments and advances Receivables 12 1, TOTAL ASSETS 34,414 33,619 LIABILITIES Current liabilities 2,044 3,855 Payables Aid Assistance unutilised 4 2,022 3,845 Retained funds Opening balance 29,764 21,232 Transfer from voted funds to be surrendered (Parliament/Legislatures ONLY) 4,606 8,532 Utilised during the year Other Closing balance 34,370 29,764 TOTAL 34,370 29,764 TOTAL LIABILITIES 2,044 3,855 NET ASSETS 34,370 29,764 Represented by: Retained funds 34,370 29,764 TOTAL 34,370 29,764

54 104 STATEMENT OF CASH FLOW ACCOUNTING POLICIES 105 CASH FLOW R 000 R 000 CASH FLOWS FROM OPERATING ACTIVITIES Receipts 206, ,965 Annual appropriated funds received , ,865 Statutory appropriated funds received 2 20,340 19,541 Departmental revenue received Aid assistance ,845 Net (increase)/decrease in working capital (645) (483) Surrendered to Revenue Fund Current payments (120,207) (115,229) Payments for financial assets (10) (49) Transfers and subsidies paid (50,355) (40,672) 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 Financial Management of the Free State Provincial Legislature Act, Act 6 of 2009, applicable to the Free State Legislature. 1. Presentation of the Financial Statements 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. Section 4 of the Financial Management of the Free State Provincial Legislature Act, Act 6 of 2009 confirms that the Speaker of the Free State Legislature is the Executive Authority and is responsible for the treasury functions. The Speaker of the Free State Legislature, in terms of the power vested in her under section 4 of the Financial Management of the Free State Provincial Legislature Act, Act 6 of 2009 may determine deviations from the template specimen provided by National Treasury for the financial statements for the financial year ended 31 March Net cash flow available from operating activities 16 35,724 51,532 CASH FLOWS FROM INVESTING ACTIVITIES Payments for capital assets 9 (33,828) (39,638) Proceeds from sale of capital assets Net cash flows from investing activities (33,586) (39,638) Net increase/(decrease) in cash and cash equivalents 2,138 11, Presentation currency All amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the Legislature. 1.3 Rounding Unless otherwise stated all financial figures have been rounded to the nearest one thousand Rand (R 000). 1.4 Comparative figures Cash and cash equivalents at beginning of period 32,547 20,653 Cash and cash equivalents at end of period 17 34,685 32,547 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.

55 106 ACCOUNTING POLICIES ACCOUNTING POLICIES Revenue 2.1 Appropriated funds Appropriated funds are recognised in the financial records on the date the appropriation becomes effective. Adjustments to the appropriated funds made in terms of the adjustments budget process are recognised in the financial records on the date the adjustments become effective. Total appropriated funds are presented in the Statement of Financial Performance. Voted funds are the amounts appropriated to the Legislature in accordance with the final budget known as the Adjusted Estimates of Provincial Expenditure. Internal shifts within the respective programmes may influence the final voted funds. Unexpended appropriated funds are not surrendered to the Provincial Revenue Fund, in terms of Section 22 of the Financial Management of the Free State Provincial Legislature Act, Act 6 of These unexpended funds form part of retained funds in the annual financial statements Fines, penalties & forfeits Fines, penalties & forfeits are compulsory unrequited amounts which were imposed by a court or quasijudicial body and collected by the Legislature. Revenue arising from fines, penalties and forfeits is recognised in the Statement of Financial Performance when the cash is received Interest, dividends and rent on land Interest, dividends and rent on land is recognised in the Statement of Financial Performance when the cash is received. Section 22 (1) of the Financial Management of the Free State Provincial Legislature Act, Act 6 of 2009, states that the Legislature is not required to return to the Provincial Revenue Fund any money appropriated or approved for a particular financial year but not spent in that year. Interest and dividends received are recognized upon receipt of funds. They are recognized as revenue in the financial statements of the Legislature. Income transferable falls within the above category and has been addressed accordingly.\ 2.2 Statutory Appropriation Sale of capital assets Statutory appropriations are recognised in the financial records on the date the appropriation becomes effective. Adjustments to the statutory appropriations made in terms of the adjustments budget process are recognised in the financial records on the date the adjustments become effective. Total statutory appropriations are presented in the Statement of Financial Performance. Unexpended statutory appropriations are surrendered to the Provincial Revenue Fund. Amounts owing to the Provincial Revenue Fund at the end of the financial year are recognised in the Statement of Financial Position. 2.3 Departmental revenue Departmental revenue is not paid into the Provincial Revenue Fund when received. Departmental revenue may be utilized to fund overspending through the Adjustment Appropriation process. Surplus departmental revenue is transferred to retained funds Tax revenue Tax revenue consists of all compulsory unrequited amounts collected by the Legislature in accordance with laws and or regulations (excluding fines, penalties & forfeits). Tax receipts are recognised in the Statement of Financial Performance when received. The proceeds received on sale of capital assets are recognised in the Statement of Financial Performance when the cash is received Financial transactions in assets and liabilities Repayments of loans and advances previously extended to employees and public corporations for policy purposes are recognised as revenue in the Statement of Financial Performance on receipt of the funds. Cheques issued in previous accounting periods that expire before being banked are recognised as revenue in the Statement of Financial Performance when the cheque becomes stale. When the cheque is reissued the payment is made from Revenue. Forex gains are recognised on payment of funds Transfers received (including gifts, donations and sponsorships) All cash gifts, donations and sponsorships are paid into the Legislature s account and recorded as revenue in the Statement of Financial Performance when received. Amounts receivable at the reporting date are disclosed in the disclosure notes to the financial statements. All inkind gifts, donations and sponsorships are disclosed at fair value in an annexure to the financial statements Sales of goods and services other than capital assets The proceeds received from the sale of goods and/or the provision of services is recognised in the Statement of Financial Performance when the cash is received. 2.4 Direct Exchequer receipts All direct exchequer receipts are recognised in the Statement of Financial Performance when the cash is received. 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).

56 108 ACCOUNTING POLICIES ACCOUNTING POLICIES Aid assistance Local and foreign aid assistance are account for as aid assistance in the financial statements. Local and foreign aid assistance is recognized as revenue when received directly from the donor(s). Payments related to aid assistance projects are recognized as expenditure in the statement of financial performance. Unutilized amounts are recognized as payables in the statement of financial position. The aid assistance bank account is recognized and disclosed in the financial statements. All local and foreign aid assistance are disclosed at fair value in the annexures to the annual financial statements Termination benefits Termination benefits such as severance packages are recognised as an expense in the Statement of Financial Performance as a transfer (to households) when the final authorisation for payment is effected on the system (by no later than 31 March of each year) Other longterm employee benefits Other longterm employee benefits (such as capped leave) are recognised as an expense in the Statement of Financial Performance as a transfer (to households) when the final authorisation for payment is effected on the system (by no later than 31 March of each year). Longterm 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 Position. 3. Expenditure 3.1 Compensation of employees Shortterm employee benefits Salaries and wages comprise payments to employees (including leave entitlements and thirteenth cheques). Salaries and wages are recognised as an expense in the Statement of Financial Performance when month end is performed. Capitalised compensation forms part of the expenditure for capital assets in the Statement of Financial Performance 1. All other payments are classified as current expense. Shortterm 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 Position. 3.2 Goods and services Payments made 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 services were used for a capital project or an asset of R5000 or more is purchased. All assets costing less than R5000 will also be reflected under goods and services. 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 Financial transactions in assets and liabilities Post retirement benefits The Legislature provides retirement benefits (pension benefits) for certain of its employees through a defined benefit and defined contribution plans. These benefits are funded by both employer and employee contributions. Employer contributions (i.e. social contributions) to the fund are expensed when the final authorisation for payment to the fund 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 Legislature. Any potential liabilities, in respect of defined benefit scheme, are disclosed in the financial statements of the National Revenue Fund and not in the financial statements of the Legislature. The Legislature provides medical benefits for certain of its employees. Employer contributions to the medical funds are expensed when final authorisation for payment to the fund is effected on the system (by no later than 31 March of each year). Debts are written off when identified as irrecoverable. Debts writtenoff are limited to the amount of savings and/or underspending of appropriated funds. The write off occurs at yearend or when funds are available. No provision is made for irrecoverable amounts but amounts are disclosed as a disclosure note. Forex losses are recognised on payment of funds. 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). 1

57 ACCOUNTING POLICIES ACCOUNTING POLICIES 3.6 Unauthorised expenditure 4.3 Prepayments and advances When discovered 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. Amounts prepaid or advanced are recognised in the Statement of Financial Position when the payments are made. Prepayments and advances outstanding at the end of the year are carried in the Statement of Financial Position at cost. Unauthorised expenditure approved with funding is recognised in the Statement of Financial Performance when the unauthorised expenditure is approved and the related funds are received. Where the amount is approved without funding it is recognised as expenditure, subject to availability of savings, in the Statement of Financial Performance on the date of approval. 3.7 Fruitless and wasteful expenditure 4.4 Receivables Receivables included in the Statement of Financial Position arise from cash payments made that are recoverable from another party. Receivables outstanding at yearend are carried in the Statement of Financial Position at cost. Fruitless and wasteful expenditure is recognised as expenditure in the Statement of Financial Performance. 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. 4.5 Investments 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 in the Statement of Financial Performance. Capitalised investments are shown at cost in the Statement of Financial Position. Any cash flows such as dividends received or proceeds from the sale of the investment are recognised in the Statement of Financial Performance when the cash is received. Investments are tested for an impairment loss whenever events or changes in circumstances indicate that the investment may be impaired. Any loss is included in the disclosure notes. 3.9 Expenditure for capital assets Payments made for capital assets 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). 4.6 Loans Loans are recognised in the Statement of Financial Position at the nominal amount when cash is paid to the beneficiary. Loan balances are reduced when cash repayments are received from the beneficiary. Amounts that are potentially irrecoverable are included in the disclosure notes. Loans that are outstanding at yearend are carried in the Statement of Financial Position at cost. 4. Assets 4.1 Cash and cash equivalents Cash and cash equivalents are carried in the Statement of Financial Position at cost. For the purposes of the Cash Flow Statement, cash and cash equivalents comprise cash on hand, deposits held, other shortterm highly liquid investments and bank overdrafts. 4.2 Other financial assets Other financial assets are carried in the Statement of Financial Position at cost. 4.7 Inventory Inventories purchased during the financial year are disclosed at cost in the notes. 4.8 Capital assets Movable assets 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 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. Subsequent expenditure of a capital nature is recorded in the Statement of Financial Performance as expenditure for capital asset and is capitalised in the asset register of the department on completion of the project. Repairs and maintenance is expensed as current goods and services in the Statement of Financial Performance.

58 112 ACCOUNTING POLICIES ACCOUNTING POLICIES Immovable assets 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. 5.5 Payables Recognised payables mainly comprise of amounts owing to other governmental entities. These payables are recognised at historical cost in the Statement of Financial Position. 5.6 Contingent liabilities Workinprogress of a capital nature is recorded in the Statement of Financial Performance as expenditure for capital asset. On completion, the total cost of the project is included in the asset register of the department that legally owns the asset or the provincial/national department of public works. Repairs and maintenance is expensed as current goods and services in the Statement of Financial Performance Intangible Assets An intangible asset is an identifiable nonmonetary asset without physical substance. Examples include computer software, licenses and development costs. The key characteristics of intangible assets are that they are identifiable resources controlled by the Legislature from which the Legislature expects to derive future economic benefits or service potential, and they lack physical substance. The Legislature recognizes an intangible asset in its statement of financial position only when it is probable that the expected future economic benefits or service potential that are attributable to the asset will flow to the Legislature; and the Legislature can measure the cost or fair value of the asset reliably. 5. Liabilities 5.1 Voted funds to be surrendered to the Revenue Fund Unexpended appropriated funds are retained in terms of Section 22 of the Financial Management of the Free State Provincial Legislature Act, Act 6 of These retained amounts are recognised in the Statement of Financial Position. 5.2 Departmental revenue to be surrendered to the Revenue Fund A similar application is followed with departmental revenue which is also recognised in the Statement of Financial Position at cost. Contingent liabilities are included in the disclosure notes to the financial statements. 5.7 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. 5.8 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. 5.9 Employee benefits Shortterm 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 Lease commitments Lease 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. Operating and finance lease commitments are expensed when the payments are made. Assets acquired in terms of finance lease agreements are disclosed in the annexures and disclosure notes to the financial statements. 6. Receivables for departmental revenue 5.3 Direct Exchequer receipts to be surrendered to the Revenue Fund Receivables for departmental revenue are disclosed in the disclosure notes to the annual financial statements. All direct exchequer fund receipts are recognised in the Statement of Financial Performance when the cash is received. Amounts received must be surrendered to the relevant revenue fund on receipt thereof. Any amount not surrendered at year end is reflected as a current payable in the Statement of Financial Position. 5.4 Bank overdraft The bank overdraft is carried in the Statement of Financial Position at cost. 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 transferred to retained income on disposal, repayment or recovery of such amounts.

59 114 ACCOUNTING POLICIES NOTES TO THE ANNUAL FINANCIAL STATEMENTS Recoverable revenue Am ounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. 1. Annual Appropriation 1.1 Annual Appropriation Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds) and Provincial Departments: 8. Related party transactions Specific information with regards to related party transactions is included in the disclosure notes. Final Appropriation 2012/ /12 Actual Funds Received Funds not requested/ not received Appropriation Received 9. Key management personnel Compensation paid to key management personnel including their family members where relevant, is included in the disclosure notes. 10. Provisions Provisions 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. R 000 R 000 R 000 R 000 Administration 109, , ,076 Facilities for Members and Political Parties 52,158 52,158 49,209 Parliamentary Services 24,195 24,195 21,580 Total 185, , , Statutory Appropriation 2012/ /12 R 000 R 000 Member of executive committee/parliamentary officers 20,340 19,541 Total 20,340 19,541 Actual Statutory Appropriation received 20,340 19, Departmental Revenue R 000 R 000 Sales of goods and services other than capital assets Fines, penalties & forfeits Interest, dividends and rent on land Sales of capital assets Transactions in financial assets and liabilities Transfer received Departmental revenue collected 1,

60 116 NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS Sales of goods and services other than capital assets 3 R 000 R 000 Sales of scrap, waste and other used current goods Total Fines, penalties & forfeits 3 R 000 R 000 Fines 7 Total 7 4. Aid assistance 4.1 Aid assistance received in cash from other: Legislature Support Programme Foreign R 000 R 000 Opening Balance 3,845 Revenue 66 3,845 Expenditure (1,889) Current (1,716) Transfers (173) Closing Balance 2,022 3, Analysis of balance 3.3 Interest, dividends and rent on land 3 R 000 R 000 Interest Total Sale of capital assets 3 R 000 R 000 Tangible assets Machinery and equipment 242 Total Transactions in financial assets and liabilities 3 R 000 R 000 Other Receipts including Recoverable Revenue Total Aid assistance unutilised 2,022 3,845 Other: LSS 2,022 3, Compensation of employees 5.1 Salaries and Wages R 000 R 000 Basic salary 42,029 40,392 Service Based Compensative/circumstantial 2,044 1,937 Other nonpensionable allowances 11,595 11,291 Total 56,569 53, Social contributions R 000 R 000 Employer contributions Pension 7,872 7,338 Medical 3,099 2,959 UIF Total 11,147 10, Transfers received 3 R 000 R 000 Public corporations and private enterprises 20 Total 20 Total compensation of employees 67,716 64,281 Average number of employees

61 118 NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS Goods and services R 000 R 000 Administrative fees 1, Advertising 1,375 1,878 Assets less then R5, Bursaries (employees) Catering 2,504 3,638 Communication 1,221 1,515 Computer services Consultants, contractors and agency/outsourced services 6.3 8,082 9,916 Entertainment 1, Audit cost external 6.4 3,341 2,408 Inventory 6.5 1,767 1,412 Operating leases Property payments ,414 12,567 Transport provided as part of the departmental activities Travel and subsistence ,363 12,088 Venues and facilities Training and staff development Other operating expenditure 6.8 1, Total 50,775 50, Assets less than R5,000 6 R 000 R 000 Tangible assets Machinery and equipment Intangible assets Total Computer services 6 R 000 R 000 External computer service providers Total Consultants, contractors and agency/outsourced services 6 R 000 R 000 Legal costs Contractors 7,828 9,620 Agency and support/outsourced services 50 Total 8,082 9, Audit cost External 6 R 000 R 000 Regularity audits 3,341 2,408 Total 3,341 2, Inventory 6 R 000 R 000 Learning and teaching support material 27 3 Food and food supplies Fuel, oil and gas Other consumable materials Materials and supplies 12 Stationery and printing Medical supplies 2 Total 1,767 1, Property payments 6 R 000 R 000 Municipal services 3,628 3,203 Property management fees 10,203 8,801 Property Maintenance and repairs 10 Other Total 14,414 12, Travel and subsistence 6 Local 9,424 10,694 Foreign 1,939 1,394 Total 11,363 12,088

62 120 NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS Other operating expenditure 6 R 000 R 000 Professional bodies, membership and subscription fees Other Total 1, Payments for financial assets R 000 R 000 Material losses through criminal conduct 34 Theft Debts written off Total Debts written off 7 R 000 R 000 Nature of debts written off LetsohaMathaeSalary overpayment 9 MohibiduCase withdrawn on catering 6 MolefiMpho Study Debt Written off 10 Total Total debt written off Detail of theft 7 R 000 R 000 Nature of theft Mustekfraudulent invoice payment 34 Total 34 SAPS investigation continues 8. Transfers and subsidies 2012/ /2012 R 000 R 000 Note Departmental agencies and accounts Annex 1C 48,258 39,200 Universities and technikons Annex 1D 11 Nonprofit institutions Annex 1G Households Annex 1H 1,672 1,367 Total 50,182 40, Expenditure for capital assets R 000 R 000 Tangible assets 33,812 39,616 Buildings and other fixed structures 32,099 38,498 Machinery and equipment 1,713 1,118 Software and other intangible assets Computer software Total 33,828 39,638 The following amounts have been included as project costs in Expenditure for capital assets Goods and services 33,828 38,498 Total 33,828 38, Analysis of funds utilised to acquire capital assets 2012/13 Voted funds Aid assistance Total R 000 R 000 R 000 Tangible assets 33,812 33,812 Building and other fixed structures 32,099 32,099 Machinery and equipment 1,713 1,713 Software and other intangible assets Computer software Total 33,828 33, Analysis of funds utilised to acquire capital assets 2011/12 Voted funds Aid assistance Total R 000 R 000 R 000 Tangible assets 39,616 39,616 Building and other fixed structures 38,498 38,498 Machinery and equipment 1,118 1,118 Software and other intangible assets Computer software Total 39,638 39,638

63 122 NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS Cash and cash equivalents 12.2 Trade receivables R 000 R 000 Cash with commercial bank(local) 13,717 10,621 Cash on hand 7 7 Investments (Local) 18,939 18,074 Legislature Support Programme bank account 2,022 3,845 Total 34,685 32, R 000 R 000 Supplier Disallowance Total Recoverable expenditure 11 R 000 R Prepayments and advances R 000 R 000 Staff advances 30 Travel and subsistence Total Legislature Support Programme Total Staff debt 11 R 000 R 000 Staff Debt Total Receivables 12.5 Other debtors 2012/ /12 R 000 R 000 R 000 R 000 R R 000 R 000 Note 12.1 Less than one year One to three years Older than three years Total Total Suspense Account 1 3 Total 1 3 Claims recoverable Annex 4 1, , Trade receivables Recoverable expenditure Staff debt Other debtors Total 1, , Claims recoverable 11 R 000 R 000 Provincial departments Public entities 1, Total 1, Voted funds to be surrendered to the Revenue Fund R 000 R 000 Opening balance Transfer from statement of financial performance 3,374 7,818 Transferred (to)/from retained revenue (3,374)) (7,818) Closing balance 13.1 Voted funds / (Excess expenditure) transferred to the retained funds R 000 R 000 Opening balance 25,571 17,753 Transfer from statement of financial performance 3,374 7,818 Closing balance 28,945 25,571

64 124 NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS Departmental revenue to be transferred to retained funds 17. Reconciliation of cash and cash equivalents for cash flow purposes R 000 R 000 Opening balance 4,193 3,479 Transfer from Statement of Financial Performance 1, Utilized during year Closing balance 5,425 4, Payables Note 2012/13 Total 2011/12 Total Clearing accounts Other payables Total Clearing accounts 15 R 000 R 000 Salary Control 16 6 Speaker CT card suspense 2 Total Other payables 15 R 000 R 000 Social Club 2 2 Sport Club 3 Suspense Ct Card 1 Total Net cash flow available from operating activities R 000 R 000 Net surplus/(deficit) as per Statement of Financial Performance 2,783 12,377 Add back non cash/cash movements not deemed operating activities 32,941 39,155 (Increase)/decrease in receivables current (738) (681) (Increase)/decrease in prepayments and advances Increase/(decrease) in payables current 12 2 Proceeds from sale of capital assets (242) Expenditure on capital assets 33,828 39,638 Net cash flow generated by operating activities 35,724 51,532 R 000 R 000 Cash on hand 7 7 Cash with commercial banks (Local) 13,717 10,621 Investment with Local bank 18,939 18,074 Legislature Support Bank Account 2,022 3,845 Total 34,685 32,547 These amounts are not recognised in the Annual Financial Statements and are disclosed to enhance the usefulness of the Annual Financial Statements. 18 Contingent liabilities and contingent assets 18.1 Contingent liabilities Liable to Nature R 000 R 000 Housing loan guarantees Employees Annex 3A Other Annexure 3B Total Commitments R 000 R 000 Current expenditure Approved and contracted 1,085 1,810 1,085 1,810 Capital Expenditure (including transfers) Approved and contracted 13,782 Total Commitments 1,085 15,592 The total commitment for a period longer than one year amount amounts to R96,498.

65 126 NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS Accruals Listed by economic classification 2012/ /12 R 000 R Days 30+ Days Total Total Goods and services ,017 1,342 Transfers and subsidies 100 Capital Total ,027 1,442 Listed by programme level Administration Benefits Political Parties & Members Note 2011/ /11 R 000 R 000 1,027 1, Total 1,027 1, Employee benefits R 000 R 000 Leave entitlement 2,336 2,149 Service bonus (Thirteenth cheque) 1,362 1,172 Other Total 3,698 3, /12 Buildings and other fixed structures Machinery and equipment Total R 000 R 000 R 000 Not later than 1 year 8, ,516 Later than 1 year and not later than 5 years 9, ,302 Later than five years Total lease commitments 17, , Finance leases expenditure 2012/13 Buildings and other fixed structures Machinery and equipment Total R 000 R 000 R 000 Not later than 1 year Later than 1 year and not later than 5 years Later than five years Total lease commitments Total present value of lease liabilities /12 Buildings and other fixed structures Machinery and equipment Not later than 1 year Later than 1 year and not later than 5 years Later than five years Total lease commitments LESS: finance costs Total Total present value of lease liabilities Lease commitments 22.1 Operating leases expenditure 2012/13 Buildings and other fixed structures Machinery and equipment Total R 000 R 000 R 000 Not later than 1 year 10, ,502 Later than 1 year and not later than 5 years 2, ,946 Later than five years Total lease commitments 12, ,448

66 128 NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS Irregular expenditure 23.1 Reconciliation of irregular expenditure R 000 R 000 Opening balance Add: Irregular expenditure relating to prior year Add: Irregular expenditure relating to current year 47 Less: Amounts condoned (47) Less: Amounts recoverable (not condoned) Less: Amounts not recoverable (not condoned) (27) Irregular expenditure awaiting condonation 47 Analysis of awaiting condonation per age classification Current year Prior years Total 24 Fruitless and wasteful expenditure 24.1 Reconciliation of fruitless and wasteful expenditure R 000 R 000 Opening balance Fruitless and wasteful expenditure relating to prior year Fruitless and wasteful expenditure relating to current year Less: Amounts resolved (5) Less: Amounts transferred to receivables for recovery Fruitless and wasteful expenditure awaiting condonement Details of fruitless and wasteful expenditure under investigation Incident 2012/13 R 000 Bronte Lounge 8 RehobotileFurniture not delivered 6 Total Related Parties The department of Public Works provided office accommodation to the Free State Provincial Legislature in the 4 th Raadzaal. No value for this service can be attributed to this transaction. The Department of Works rendered services on the administration of infrastructure contracts, freeof charge to the Free State Legislature s new building Ramkraal. 26 Key management personnel Key management personnel No. of Individuals 2012/ /12 R 000 R 000 Speaker to the Legislature* ,563 Secretary to the Legislature 1 1,754 1,629 Deputy Secretary 1 1,388 1,278 Chief Financial Officer 1 1,392 1,301 Legal Advisor 1 1,144 1,065 Total 6,638 6,836 *Speaker s position filled for 7 months 24.2 Analysis of awaiting condonation per economic classification 27 Provisions 2012/ /12 R 000 R 000 Current Capital Transfer and subsidies Total R 000 R 000 Staff Debtors 10 Trade Debtors Total Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer Free State Provincial Legislature lekgotla la ketsamelao laprovinsi ya freistata Vrystaaat Provinsiale Wetgewer

67 130 NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS Nonadjusting events after reporting date 29.1 Additions All commitments regarding the Ramkraal building project for the new legislature building is now vested with the Department of Public Works. Expenditure as disclosed in note 31.1 and 31.2, which have been settled by the Legislature of this project is being moved to the Department of Public Works as capital assets workinprogress. 2012/13 R ,597 ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Cash Noncash (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 Movable Tangible Capital Assets MACHINERY AND EQUIPMENT 1, ,317 Transport assets 1,270 1,270 Computer equipment MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Furniture and office equipment Other machinery and equipment Opening balance Curr Year Adjustments to prior year balances Additions Disposals Closing Balance TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 1, ,317 R 000 R 000 R 000 R 000 R 000 MACHINERY AND EQUIPMENT 8, , ,786 Transport assets 4,414 (291) 1, ,838 Computer equipment 1, ,048 Furniture and office equipment 2,098 (94) 768 2,772 Other machinery and equipment ,128 TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 8, , , Disposals DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED31 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 Transport Assets Furniture and office equipment 9 9 TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS

68 132 NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS 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 7,656 1,192 8,848 Transport assets 3, ,414 Computer equipment 1, ,521 Furniture and office equipment 2, ,098 Other machinery and equipment TOTAL MOVABLE TANGIBLE ASSETS 7,656 1,192 8, Minor assets MOVEMENT IN MINOR ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Intangible assets Machinery and equipment Total R 000 R 000 R 000 Opening balance 348 5,619 5,967 Curr Year Adjustments to Prior Year balances (11) (93) (104) Additions Disposals TOTAL MINOR ASSETS ,147 Intangible assets Machinery and equipment Total Number of R1 minor assets Number of minor assets at cost 188 6,123 6,311 TOTAL NUMBER OF MINOR ASSETS 188 6,804 6,992 Minor assets MOVEMENT IN MINOR ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012 Intangible assets Machinery and equipment Total R 000 R 000 R 000 Opening balance 264 5,028 5,292 Additions Disposals 7 7 TOTAL MINOR ASSETS 348 5,619 5,967 Intangible assets Machinery and equipment Total Number of R1 minor assets Number of minor assets at cost 142 6,102 6,244 TOTAL NUMBER OF MINOR ASSETS 142 6,784 6, Movable assets written off MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2013 Intangible assets Machinery and equipment Total R 000 R 000 R 000 Assets written off TOTAL MOVABLE ASSETS WRITTEN OFF MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2012 Intangible assets Machinery and equipment Total R 000 R 000 R 000 Assets written off TOTAL MOVABLE ASSETS WRITTEN OFF

69 134 NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS Intangible Capital Assets 30.1 MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH Immovable Tangible Capital assets MOVEMENT IN IMMOVABLE 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 Opening balance Additions Disposals Closing balance R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 COMPUTER SOFTWARE BUILDINGS AND OTHER FIXED STRUCTURES Other fixed structures TOTAL INTANGIBLE CAPITAL ASSETS TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS Additions ADDITIONS TO INTANGIBLE CAPITAL ASSET PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Cash NonCash (Capital work in progress current costs and finance) Received current,not paid (paid current year,received prior year) Total R 000 R 000 R 000 R 000 COMPUTER SOFTWARE TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS Movement for 2011/12 MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012 Restatement of opening balance to zero, due to redefining ownership to Department of Public Works ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Cash NonCash (Capital work in progress current costs and finance) Received current,not paid (paid current year,received prior year) Total R 000 R 000 R 000 R 000 BUILDINGS AND OTHER FIXED STRUCTURES 32,099 (32,099) Other fixed structures 32,099 (32,099) TOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS 32,099 (32,099) Opening balance Additions Disposals Closing Balance R 000 R 000 R 000 R 000 COMPUTER SOFTWARE TOTAL INTANGIBLE CAPITAL ASSETS

70 136 NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012 Cash NonCash (Capital work in progress current costs and finance) Received current,not paid (paid current year,received prior year) Total R 000 R 000 R 000 R 000 BUILDINGS AND OTHER FIXED STRUCTURES 38,498 (38,498) Other fixed structures 38,498 (38,498) TOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS 38,498 (38,498)

71 138 ANNEXURES TO THE FINANCIAL STATEMENTS ANNEXURES TO THE FINANCIAL STATEMENTS 139 ANNEXURE 1C STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS TRANSFER ALLOCATION TRANSFER 2011/12 DEPARTMENT/ AGENCY/ ACCOUNT 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 Constituents Allowance 9,743 9,743 9,673 99% 9,673 Office Allowance: Admin 1,041 1,041 1, % 1,038 Office Allowance: Salaries Research Allowance Political Allowance 6,050 1,351 31,770 6,050 5,832 1,351 1,217 31,770 30,498 96% 90% 96% 5,832 1,217 30,498 49,955 49,955 48,258 48,258 ANNEXURE 1D STATEMENT OF TRANSFERS TO UNIVERSITIES AND TECHNIKONS UNIVERSITY/TECHNIKON Adjusted Appropriation TRANSFER ALLOCATION TRANSFER 2011/12 Roll Overs Adjustments Total Available Actual Transfer Amount not transferred % of Available funds Transferred Adjusted Appropriation Appropriation Act R 000 R 000 R 000 R 000 R 000 R 000 % R 000 University Free State

72 ANNEXURES TO THE FINANCIAL STATEMENTS ANNEXURES TO THE FINANCIAL STATEMENTS ANNEXURE 1G STATEMENT OF TRANSFERS TO NONPROFIT INSTITUTIONS TRANSFER ALLOCATION EXPENDITURE 2011/12 NONPROFIT INSTITUTIONS Adjusted Appropriation Act Roll overs Adjustments Total Available Actual Transfer % of Available funds transferred Appropriation Act Transfers ANC Youth League Bophelo Aids Project CHOC House Tswelopele Funeral Other Donations Golf Beneficiaries St Dominiques College Jacob Zuma Trust Sport Donation Transport Support R 000 R 000 R 000 R 000 R 000 % R % 100% 100% 100% 100% 100% Total % 105 ANNEXURE 1H 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 Transfers Promotional Articles Educational Programme Speaker Gifts Flowers FS Development Trust Funeral Support Women Workshops/Parliament Golfday Events/Clothing FSL Other Winter Blanket Project Youth Parliament Sport Donation R 000 R 000 R 000 R 000 R 000 % R % 100% 100% 100% 100% 100% 100% % 100% 100% Total 1,554 1,554 1,672 1,347

73 142 ANNEXURES TO THE FINANCIAL STATEMENTS ANNEXURES TO THE FINANCIAL STATEMENTS 143 ANNEXURE 1I STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED 2012/ /12 NAME OF ORGANISATION NATURE OF GIFT, DONATION OR SPONSORSHIP R 000 R 000 Received in cash ITEC FNB Subtotal 20 TOTAL 20 ANNEXURE 1J STATEMENT OF AID ASSISTANCE RECIVED OPENING BALANCE REVENUE EXPENDITURE CLOSING BALANCE NAME OF DONOR PURPOSE R 000 R 000 R 000 Received in Cash Support to the Legislature to promote democracy 3, ,889 2,022 Total 3, ,889 2,022

74 144 ANNEXURES TO THE FINANCIAL STATEMENTS ANNEXURES TO THE FINANCIAL STATEMENTS 145 ANNEXURE 2A STATEMENT OF INVESTMENTS IN AND AMOUNTS OWING BY/TO NATIONAL/PROVINCIAL PUBLIC ENTITIES Name of Public Entity NationalProvincial Public Entity First National Bank State Entity s PFMA Schedule type (state year end if not 31 March) % Held 12/13 Number of shares held Cost of investment R 000 Net Asset value of investment R 000 Profit/(Loss) for the year R 000 Losses guaranteed % Held 10/ / / / / / / / /12 Yes/No 18, ,939 18, Subtotal 18,000 18,000 18,939 18, TOTAL 18,000 18,000 18, ANNEXURE 3A STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2013 LOCAL Guarantor institution ABSA FNB Guarantee in respect of Housing Original guaranteed capital amount Opening balance 1 April 2012 Guarantees draw downs during the year Guarantees repayments/ cancelled/ reduced/ released during the year Revaluations Closing balance 31 March 2013 Guaranteed interest for year ended 31 March 2013 Realised losses not recoverable i.e. claims paid out R 000 R 000 R 000 R 000 R 000 R 000 R 000 R Subtotal TOTAL

75 146 ANNEXURES TO THE FINANCIAL STATEMENTS ANNEXURES TO THE FINANCIAL STATEMENTS 147 ANNEXURE 3B STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2012 Nature of Liability Opening Balance 1 April 2012 R 000 Liabilities incurred during the year R 000 Liabilities paid/cancelled/ reduced during the year R 000 Liabilities recoverable(provide details hereunder) R 000 CLOSING BALANCE 31 MARCH 2013 R 000 Claims against the Legislature Mothibi Review Labour Court Mohibidu Review Labour Court Nehawu Car Allowance: Labour Court Other Possible penalties due to underpayment PAYE TOTAL ANNEXURE 4 CLAIMS RECOVERABLE Government Entity Confirmed balance outstanding Unconfirmed balance outstanding Total 31/03/2013T 31/03/ /03/ /03/ /03/ /03/2012 R 000 R 000 R 000 R 000 R 000 R 000 Department Office of the Director General Other Government Entities SANLAM Cope Political Party 3 3 ANC Political Party 1,135 1,135 1, TOTAL 1, ,

76 148 ANNEXURES TO THE FINANCIAL STATEMENTS ANNEXURES TO THE FINANCIAL STATEMENTS 149 ANNEXURE 6 INVENTORY Inventory Note Quantity 2012/13 Quantity 2011/12 R 000 R 000 Opening balance 5, , Add/(Less): Adjustments to prior year balance Add: Additions/Purchases Cash 12, , Add: Additions Noncash (Less): Disposals (Less): Issues (14,910) (378) (24,898) (329) Add/(Less): Adjustments (254) Closing balance 3, , ANNEXURE 7 Movement in Capital WorkinProgress MOVEMENT IN CAPITAL WORKINPROGRESS FOR THE YEAR ENDED 31 MARCH 2013 Opening balance Current Year Capital WIP Completed Assets Closing balance R 000 R 000 R 000 R 000 BUILDING AND OTHER FIXED STRUCTURES 38,498 32,099 70,597 Other fixed structures 38,498 32,099 70,597 TOTAL 38,498 32,099 70,597

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