DEPARTMENT OF TRANSPORT PROVINCE OF LIMPOPO VOTE NO. 08 ANNUAL REPORT 2015/2016 FINANCIAL YEAR

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1 LIMPOPO PROVINCIAL GOVERNMENT REPUBLIC OF SOUTH AFRICA DEPARTMENT OF TRANSPORT PROVINCE OF LIMPOPO VOTE NO. 08 ANNUAL REPORT 2015/2016 FINANCIAL YEAR

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3 LIMPOPO PROVINCIAL GOVERNMENT REPUBLIC OF SOUTH AFRICA DEPARTMENT OF TRANSPORT PROVINCE OF LIMPOPO VOTE NO. 08 ANNUAL REPORT 2015/2016 FINANCIAL YEAR

4 CONTENTS PART A: GENERAL INFORMATION DEPARTMENT GENERAL INFORMATION LIST OF ABBREVIATIONS/ACRONYMS FOREWORD BY THE MEC REPORT OF THE ACCOUNTING OFFICER STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT STRATEGIC OVERVIEW Vision Mission Values Strategic outcome orientated goals LEGISLATIVE AND OTHER MANDATES ORGANISATIONAL STRUCTURE ENTITIES REPORTING TO THE MEC PART B: PERFORMANCE INFORMATION AUDITOR GENERAL'S REPORT: PREDETERMINED OBJECTIVES OVERVIEW OF DEPARTMENTAL PERFORMANCE Service Delivery Environment Service Delivery Improvement Plan Organisational environment Key policy developments and legislative changes STRATEGIC OUTCOME ORIENTED GOALS PERFORMANCE INFORMATION BY PROGRAMME Programme 1: Administration Programme 2: Transport Infrastructure Programme 3: Transport Operations Programme 4: Transport Regulation TRANSFER PAYMENTS Transfer payments to public entities Transfer payments to all organisations other than public entities... 58

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7 PART A: GENE [ INFORMATION

8 1. DEPARTMENT GENERAL INFORMATION PHYSICAL ADDRESS Phamoko Towers Corner Church and Bodenstein Street Polokwane 0699 POSTAL ADDRESS Private Bag X 9491 Polokwane 0700 TELEPHONE NUMBER/$ : +27 (15) FAX NUMBER : +27 (15) ADDRESS sellod@dot.limpopo.gov.za maphiria@dot.limpopo.gov.za ramashiyaj@dot.limpopo.gov.za WEBSITE ADDRESS

9 2.LIST OF ABBREVIATIONS/ACRONYMS ABET AGSA ANPR BEC CBO's COE COID COBIT DL TCs DORA DRMC enatis EPWP GAAL CD GITO Adult Basic Education & Training Auditor-General South Africa Automated Number Plate Recognition Bid Evaluation Committee Community Based Organisation's Compensation of Employees Compensation for Occupational Injuries and Diseases Control Objectives for Information and Related Technology Driver's License Testing Centres Division of Revenue Act District Risk Management Committee electronic National Traffic Information System Expanded Public Works Programme Gateway Airport Authority Limited Chief Director Government Information Technology Officer HIV & AIDS Human Immune deficiency Virus & Acquired Immune Deficiency Syndrome HOD IDP ITP LPTC MEC Head of the Department Integrated Development Plan Integrated Transport Plan Limpopo Provincial Taxi Council Member of the Executive Council

10 MISS MOU MSP MTEF NGO's OHSA OHS OLB PFMA PL TF PRMG PTOG PRE LEGDP PPP RTMC Minimum Information Security Standards Memorandum of Understanding Master Systems Plan Medium Term Expenditure Framework Non-Government Organisations Occupational Health and Safety Act Occupational Health and Safety Operating License Board Public Finance Management Act Provincial Land Transport Framework Provincial Road Maintenance Grant Public Transport Grant Provincial Regulating Entity Limpopo Employment Growth and Development Plan Public Private Partnership Road Traffic Management Corporation SANRAL South African National Roads Agency SAPS SMME SHE SHEQ TCC VCT VTS South African Police Service Small Medium and Micro Enterprise Safety Health Environment Safety Health Environment Risk Quality Traffic Control Centre Voluntary Counselling and Testing Stations Vehicle Testing Station

11 3. FOREWORD BY THE MEC Hon. Mme Mapula A. Mokaba-Phukwana MEC for Transport, Safety, Security and Liaison The Freedom Charter adopted by our forebears at Kliptown in 1955 has declared amongst others that in a free non-racial South Africa ''All shall be free to travel without restrictions from countryside to town, from province to province, from South Africa to abroad." Our forbearers envisioned transportation as a human right to be enjoyed by all South Africans without banishment, difficulties, segregation and fear that you may be arrested or not return home due to accident. In the current democratic and transformative epoch, the Department of Transport has in line with the declaration made in the Freedom Charter been charged by the National Development Plan with the responsibility "to establish effective, safe and affordable public transport". Together with rest of citizens of the world we have as well pledged ourselves to the Decade of Action which obligates us to halve road fatalities by 2020.

12 During the year under review, the Department of Transport has in pursuance of the vision in the Freedom Charter, the Decade of Action 2020,the National Development Plan, and strategic objectives outlined in our various policy imperatives, we have set for ourselves as a country and province, we have in earnest embarked on programmes and actions earmarked to ensure that by 2020 our vision to transform the transport service from basic commuter operations to accelerated intermodal upgrading and integrated rapid public Transport is achieved. We have in this regard continued to encourage current minibus and bus operators to continue working closely with government to create a win-win model for implementation of the Integrated Transport Plans. Within this context the Department has in 2015/2016 assisted Musina and Tzaneen Local Municipalities in the review of their Integrated Transport Plans. The Department has in the 2015/2016 financial year continued with implementation of our road based public transport subsidy and the Rural Transport Strategy to give effect to affordable public transportation. We provided subsidies to bus operators in order for the workers and others in our land who use bus transportation to access their work place and destinations with ease. We distributed bicycles to our learners aiming at cutting short the long distances to school. We have also in the year under review embarked in many law enforcement operations aimed at curbing the road fatalities confronting us daily on our roads. The Department has also in a bid to ensure that its services are brought closer to the people, decentralised the renewal of vehicle licences through using post offices as service points for this function. With the realisation that the number of accidents involving pedestrians nationally is on the rise, we have heightened the number of road safety campaigns and outreaches. These programmes which also included school safety have not only increased interest in the work that the Department of Transport does, but has yielded much in terms activism amongst our people to ensure that our roads in the province are safe. Together with the Road Accident Fund in the year under review, we have gone into the exercise of ensuring the fund directly engages with the victims of road accidents rather than having victims going into the fund through a middleman.

13 We have indeed together with other stakeholders in the industry during 2015/2016 financial ensured that the journey towards "establishing effective, safe and affordable public transport" as instructed by the National Development Plan is undertaken. I take this opportunity to thank the Head of Department, Ms. Hanli Du Plessis and her team, our men and women in uniform, our stakeholders in the industry and everyone who continued to give us support in our effort to make our roads safer and deliver services to our people. Together we move South Africa Forward. MEC for Transport, Safety, Security and Liason

14 4. REPORT OF THE ACCOUNTING OFFICER Submission of the Annual Report by the Accounting Officer for the year ended 31 March Overview of the operations of the department: 1.1 Mandate The Department of Transport is mandated to establish an effective, safer and affordable transport system for socio-economic development as well as to promote low carbon economy through offering transport alternatives with reduced environmental damage. I want to acknowledge the fact that we still have challenges ahead until we can safely say our people are living the transport dream. However, over the past years, the Department of Transport has embarked on a concerted effort to develop and improve the Province's transport system to serve as a catalyst for socio-economic development, particularly the movement of goods and people. The National Development Plan directs the transport sector of the country to establish effective, safe and affordable public transport which translated into the Limpopo Development Plan which seeks the Department of Transport to: (a) bridge the geographic distances affordably and foster reliable and safe public transport within the province. (b) support economic development by easing the transportation of goods from production sites to manufacturing and ultimately to where they are consumed. This will also facilitate local, regional and international trade. (c) promote a low carbon economy through offering transport alternatives with reduced environmental damage. It is only through an efficient, affordable and reliable transport system that our people can participate in activities that bring better economic conditions for the Province and connecting trade with SADC countries.

15 This Annual Report spells out our mandate as government and highlights areas that we commit ourselves to implement such in order for transport to play a meaningful role for the transportation of goods and people to sustain their livelihoods. 1.2 Legislative Mandates The departmental mandate is informed by the following legislation and policy documents: a) Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996) b) Public Service Act, 1994 read with Part 111 of Chapter 1 of the Public Service Regulations, 2001 c) Public Service Regulation, 2001 d) Labour Relations Act 66 of 1995 e) Occupational Health and Safety Act, 85 of 1993 f) Public Finance Management Act, 1999 (Act no. 1 of 1999) as amended by Act 29 of 1999 and Treasury Regulations g) Preferential Procurement Policy Framework Act, 2000 h) State Information Technology Act no 88 of 1998, as amended i) The National Archives and Records Service of South Africa Act (Act. No. 43 of 1996, as amended) j) Promotion of Access to Information Act (Act No.2 of 2000) k) The National Archives and Records Service of South Africa Regulations (R158 of 20 November 2002) I) Minimum Information Security Standards (MISS) m) Construction Industry Development Board Act, 45 of 2000 n) Engineering Profession of South Africa Act, 114 of 1990 o) National Environmental Management Act 8 of 2004; p) National Forest Fire Act 101 of 1998

16 q) Re-determine Boundaries of Cross Boundary Municipalities Act 69 of 2000 r) Northern Province Interim Passenger Transport Act, 1999 (Act No. 4 of 1999) s) The National Land Transport Act, 2009 (Act 5 of 2009) t) Urban Transport Act, 1977 (Act No. 78 of 1977) u) Administration and Adjudication of Road Traffic Offences Act, 1998 (Act No. 46 of 1998) v) Limpopo Province Road Traffic Act, (Act no. 5 of 1997) w) Road Traffic Management Corporation Act, 1999 (Act No. 20 of 1999) 1.3 Overview of the results and challenges on significant events and projects for the year We had to continually implement austerity measures to slow down the expenditure on non-essentials in order to channel the resources to most relevant programmes to assist in achieving our mandate. The Department received an unqualified audit opinion during 2014/2015 financial year with matters of emphasis on irregular, fruitless and wasteful expenditure. The recently recommended Financial Loss Management Board by National Treasury, to be established within government departments, will assist in addressing loss and unwanted expenditures. During the year under review, the Department was seen as recovering well due to the Section 100 (1) (b) and (a) intervention. Our finances have stabilized and internal controls are tightened. The Department is also now able to fill vacant critical posts within our core mandates. In the course of trying to serve the Province and its citizens to the best of our ability, there have been a number of challenges but we still managed to record major achievements in some of our programmes.

17 The problems of high fatality rates on our roads however remain a serious concern and the Department in conjunction with the Road Traffic Management Corporation (RTMC) will embark on a series of projects and programmes in an endeavour to deal with this matter decisively to once and for all reduce the carnage on our roads. Focus will be on the youth in the province to carry the message of safer roads to all communities in the province. Corruption remains a major concern and the Department is dealing with this decisively. An investigation was started in collaboration with the Provincial Treasury Internal Audit Unit and the South African Police Service on the misappropriation of revenue at Weighbridges following which it has been extended to include all traffic stations. The outcome of this investigation and possible disciplinary and criminal charges against officials in the Department will follow in the 2016/2017 Financial Year Programme 1: Administration The programme constitute 17.1 per cent of the total Departmental budget and this anomaly is as a result of centralised services under the programme which are: security services, fleet running cost, lease of building and the purchase of vehicles. If these services are removed from Administration, the revised Programme will be at 12.6 percent. The service delivery measures for the programme are: Skills programmes; and Learnership programmes Achievements During the financial year we enrolled 55 interns in many programmes that we host, through our partnership with the Transport Education and Training Authority (TETA). Out of the 55 interns did B-Admin (Transport Management 0) and 10 Diploma in Supply Chain Management. All this interns were placed under administration related programmes, ultimately 24 were appointed in the Department during 2014/15 and 2015/2016 financial year.

18 Over 78 workers within the Government Garages are on an Artisan Development Programme which will be completed during 2016/17 financial year. We implemented 20 skills programmes for both our Core function and Support Staff in the past year and managed to do 3 learnership programmes to enhance the skilling of employees at lower level. The 215 Traffic Trainees who graduated will accordingly be permanently appointed as Provincial Inspectors effective from May Challenges and Future Plans on COE The Department managed to fill 339 posts during the financial year under review. However due to financial constraints the Department could not fill vacancies that emerged during 2015/2016 financial year. With the additional allocation of R8 million to COE budget, the Department shall prioritise critical posts under Transport Operations and Supply Chain Management. A task team has been put in place to determine critical posts for filling during 2016/2017 financial year Programme 2: Transport Infrastructure Programme 2 was shifted to the Department of Public Works, Roads and Infrastructure during the Provincial reconfiguration process. It appears in the Annual Report for reporting purposes only Programme 3: Transport Operations The purpose of the programme is to plan, develop, regulate and facilitate the provision of integrated public and freight transport services, through co-ordination and co-operation with national and local authorities, as well as the private sector in order to enhance the mobility of all communities particularly those without or with limited access. The service delivery measures for the programme are:

19 Routes, kilometers and trips for subsidized transport services; Scholar patrol points; Road safety awareness; and Schools involved in road safety education Achievements During 2015/16 financial year the Department distributed 271 bicycles to 11 schools throughout the Province for "Shova Kalula Bicycle Projecf' as part of the rural transport strategy and a further 300 bicycles will be distributed during the 2016/17 financial year. This programme is a partnership with the National Department of Transport under the Shova Kalula National Bicycle Partnership Programme We have undertaken the development of the Integrated Transport Plans {ITP) for Greater Tubatse Municipality and also commenced with the review of ITPs for Musina and Greater Tzaneen Municipalities. We have subsidised spending on bus transport, benefitting more than 30 million passengers trips at a cost of R 652 million per annum. As an economic spin-off, well over 2 OOO permanent jobs were created in the form of Bus drivers, Dispatchers, Mechanics, Operations Managers as well as clerical and admin staff. Two projects that however could not commence due to challenges relating to supply chain processes and the availability of land earmarked for the development of the Limpopo Traffic Training College resulted in the Department receiving a reduced budget.

20 Future plans During 2016/17 financial year we will assist in the development of ITP for Mogalakwena Municipality. Plans for 2016/2017 are in the pipe line to commence with the development of the Provincial Integrated Transport Masterplan, which will be a Chapter of the National Transport Masterplan (Natmap) We will also introduce an electronic bus monitoring system which will provide reliable monitoring reports and passenger information on subsidised transport services Gateway Airport Authority Limited (GAAL) GAAL is a schedule 3 D Provincial Government Business Enterprise reporting to the MEC for Transport, Safety, Security and Liaison as the provincially mandated shareholder. The budget for GAAL is included under Programme 3. Capacity of personnel continues to be a major challenge at GAAL, which resulted in poor performance of the key service delivery areas. In collaboration with the newly appointed Board of Directors the Department is determining the most appropriate interventions from the available options. Some of the possible solutions are already identified for implementation at the Polokwane International Airport in order to have it perform to its optimal advantages. We are planning to conduct a feasibility study to determine the contribution of Lephalale, Musina, Giyani and Mphephu airports to aviation development in the province. The intention is to determine how these airports can support the socio-economic development of the province and the south of Sub-Sahara region.

21 1.3.4 Programme 4: Transport Regulation The purpose of the programme is to ensure the provision of a safe transport environment through the regulation of traffic on public infrastructure, law enforcement, implementation of road safety education, awareness programmes and registration and licensing of vehicles and drivers. The service delivery measures for the programme are: Compliance inspections; Speed operations; Roadblocks conducted; Vehicles weighed; and Drunken driving operations Achievements The Department purchased 126 Vehicles for Traffic Law Enforcement to enhance response time and visibility on our roads. A new radio communication system for traffic law enforcement has already been purchased and contributes immensely towards improved communication. On road safety, the Department has conducted awareness campaigns while in law enforcement we have conducted 380 road blocks, speed operations, weighing operations with vehicles weighed, drunken driving operations. We conducted public transport deployment and in total stopped and checked (One million eight hundred and thirty thousand nine hundred and eighty seven) vehicles. These operations yielded the following results: speeding 121 arrests, drunken driving arrests, overloading 116 arrests, fraudulent driver licenses 17 arrests, reckless and negligent driving 17 arrests. We have also managed to discontinue vehicles for being un-roadworthy. We have impounded vehicles for operating without proper legal documents.

22 We are continuing with these operations and as part of the collective effort to make our roads safer during 2016/17 and beyond. We have, together with other national stakeholders, making proposals to cons ider the criminalisation of all traffic offences because we continue to lose lives Future plans Working in partnership with the Departments of Education and the Department of Health and other relevant entities, we will continue to intensify road traffic education and awareness programs in all schools and public gatherings. The School Learner Driver Training programme fund ed through the RTMC will target Grade 11 and 12 learners. To roll out this program, accredited local driving schools will be recruited through an open tender system for the training of learners. An estimated budgeted amount of R8m will be set aside for this purpose. We have also set aside R5m for the procurement of 15 driver training simulators earmarked at strengthening this dr iver training project. 2. Overview of the financial results of the department: Departmental receipts: 2014/ /2016 Estimate Actual (Over)/Under Estimate Actual (Over)/Under Departmental Amount Collection Amount Collection receipts Collected Colleded Tax Receipts , ,037 {8,423) Motor vehicle licences , ,037 (8,423) Sale of goods and services ,896 25,067 9,636 other ttan capital assets Transfers received Fines, penalties and forfeits (4 025) 51,255 58,547 (7,293) Interest, dividends and rent on (41) land Sale of capital assets ,309 3,031 5,278 Financial transactions in asset (28 191) 4, ,602 and liabilities Total , ,035

23 The Department collected R419, 631 (99.05) against the estimated budget of R423, 666 million. The under collection is due to the non-payment of revenue collected by municipalities (Thabazimbi, Musina, Mutale, Ba-Phalaborwa and Mookgopong). The municipalities who owe the Department had committed themselves to service their debt and in case they default, they will not be provided with face-value forms. The Departmental Tariff Review Committee which is chaired by the Director Management Accounting, constitutes of the District Finance Deputy Directors, Director Transport Regulation, Director Transport Operations, Deputy Director Fleet Management and Representative from Provincial Treasury. In reviewing tariffs, the Committee considers the economic growth, benchmark with other provinces and the CPI approval which was granted by the Provincial Treasury before gazetting by our MEC. For 2015/16 financial year, the Department had a minimal positive growth of 2.6 per cent of which the total appropriated for Vote 8 was R 1, 738, 525, OOO which was spent as follows: Programme Expenditure Programme Name Final Actual (Over)/Under Appropriation Expenditure Expenditure 2015/2016 Final Actual (Over)/ Under Appropriation Expenditure Expenditure Administration 590, ,101 44,079 Transport 736, ,884 4,148 Operations Transport 466, ,503 40,143 Regulation Total 1,792,858 1,704,488 88, , ,546 2, , ,333 8, , , ,738,525 1,727,714 10,811 Reasons for material under-expenditure The annual increase for subsidies to bus operators was calculated at a 4 percent increase while the approved annual increase as advised by National Department of Transport was 2.1 percent which resulted in over budgeting and under expenditure.

24 The impact on programmes and service delivery The delay in the implementation of Revenue Enhancement Strategy has contributed to the under collection of revenue. Roll overs The Department requested roll-overs from 2014/15 to 2015/16 which was R3, 046 million and was granted and effected during the adjustment budget. The details of the rollover request are as follows: RO, 468 million in respect of data projectors. R2, 578 million in respect of detailed remedial designs and preparation of bids documents for remedial construction of Thohoyandou lntermodal Facility. Unauthorized, fruitless and wasteful expenditure R interests paid to Eskom and Municipalities Public Private Partnerships None New or proposed activities Implementation of the electronic bus monitoring system Learner Driver Training Programme All concluded unsolicited bid proposals for the year under review None SCM processes and systems to prevent irregular expenditure The SCM processes and systems are in place and there are Procedure Manuals to ensure that there is no irregular expenditure.

25 Challenges experienced and how it is resolved Capacity constraints in terms of personnel due to the out dated organisational structure which has not been reviewed since Interns and contract workers were utilised to deal with this challenge. However, when the contract period came to an end same situation prevailed. A new organisational structure aligned to the mandate of the Department is under development. Gifts and Donations received in kind from non-related parties The Department received the following donations: Road Safety Promotional vehicle received from Disabled People of South Africa. For purposes of outreach to communities during "Mandela Day" the Department received: Microwave Oven Washing Machines Deep Freezers Exemptions and deviations received from the National Treasury None Events after the reporting date None Other None 3. Acknowledgement I would like to take this opportunity to thank the Executive, Senior Management and Staff of the Department for their continuous support and dedication during the financial year. Further, I would like to acknowledge the work of the Portfolio Committee on Transport,

26 Security, Safety and Liaison, SCOPA, Provincial Treasury and the Cluster 4 Audit Committee for their oversight role and guidance provided to the Department. A word of thanks also goes to the RTMC, Provincial Taxi Council, Interim Provincial Regulating Entity, Small Bus Operators Council and the GAAL Board of Directors for the invaluable contributions to the functioning of the Department. Conclusion Honourable MEC of Limpopo Department of Transport, Safety, Security and Liaison, it is with honour and pride that I submit to you, in terms of Section 65 (1) of the Public Finance Management Act, Act 1 of 1999 (as amended by Act 29 of 1999), the Annual Report on the performance of the Limpopo Department of Transport for the year ended 31 March Approval and sign off :l:ssis Accounting Officer Department of Transport, Safety, Security and Liason

27 5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT To the best of my knowledge and belief, I confirm the following: All information and amounts disclosed in the annual report is consistent with the annual financial statements audited by the Auditor General. The annual report is complete, accurate and is free from any omissions. The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury. The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks and guidelines issued by the National Treasury. The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information. The Accounting Officer is responsible for establishing, and implementing a system of internal control has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements. The external auditors are engaged to express an independent opinion on the annual financial statements.

28 In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the Department for the financial year ended 31 March s&}::sis Accounting Officer Department of Transport, Safety, Security and Liason

29 6. STRATEGIC OVERVIEW 6.1 Vision "A pioneering and leading department at the epicenter of socio-economic development" 6.2 Mission "To provide safe, affordable, sustainable and integrated transport services" 6.3 Values The values of the department emanate from the Batho Pele principles. The department's values are: Integrity Transparency Accountability Consistency Trust and Respect 6.4 Strategic outcome orientated goals In order to implement the strategic objectives of the department, the following five (5) outcomes were identified: Decent employment through inclusive economic growth; An efficient, competitive and responsive economic infrastructure network; Skilled and capable workforce to support an inclusive growth path; Vibrant, equitable, sustainable rural communities contributing towards food security for all; and All people in SA are and feel safe.

30 7. LEGISLATIVE AND OTHER MANDATES Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996) Public Service Act, 1994 read with Part 111 of Chapter 1 of the Public Service Regulations, 2001 Public Service Regulation, 2001 Labour Relations Act 66 of 1995 Occupational Health and Safety Act, 85 of 1993 Public Finance Management Act, 1999 (Act no. 1 of 1999) as amended by Act 29 of 1999 and Treasury Regulations Preferential Procurement Policy Framework Act, 2000 State Information Technology Act no 88 of 1998, as amended The National Archives and Records Service of South Africa Act (Act. No. 43 of 1996, as amended) Promotion of Access to Information Act (Act No.2 of 2000) The National Archives and Records Service of South Africa Regulations (R158 of 20 November 2002) Minimum Information Security Standards (MISS) Construction Industry Development Board Act, 45 of 2000 Engineering Profession of South Africa Act, 114 of 1990 National Environmental Management Act 8 of 2004; National Forest Fire Act 101 of 1998 Re-determine Boundaries of Cross Boundary Municipalities Act 69 of 2000 Northern Province Interim Passenger Transport Act, 1999 (Act No. 4 of 1999)

31 The National Land Transport Act, 2009 (Act 5 of 2009) Urban Transport Act, 1977 (Act No. 78 of 1977) Administration and Adjudication of Road Traffic Offences Act, 1998 (Act No. 46 of 1998) Limpopo Province Road Traffic Act, (Act no. 5 of 1997) Road Traffic Management Corporation Act, 1999 (Act No. 20 of 1999)

32 8. ORGANISATIONAL STRUCTURE MEC for Roads and Transport Honourable Mapula Mokaba-Phukwana Chief Executive Officer Gateway Airport Limited Mr Thulani Zulu Accounting Officer Ms Hanli du Plessis Sub-Branch: Office of the Chief Financial Officer Ms Malehu Thindisa / I Sub-Branch: Public Transport Development " / Sub-Branch: " Road Traffic and Safety '- Ms Elmien Koedyk ' Ms Jane Mulaudzi./,, '- Sub-Branch: Human Resources Mr Ngoako Mangena './,, Sub-Branch: ' Office of the Government Information Technology Officer ' Mr Kugan Soobramani /' '- Sub-Branch: Internal Support Mr Futana Tebele './

33 9. ENTITIES REPORTING TO THE MEC The MEC is the sole shareholder of Gateway Airport Authority Limited which is a Schedule 3 entity in terms of the Public Finance Management, Act no 1 of 1999 as amended (PFMA). The Department transfers funds to the airport for the management and the maintenance of airport infrastructure. Transfers are done in line with section 38.1 G) of Public Finance Management Act, no 1 of 1999, wherein entities are required to comply with the following standing administrative arrangement: Written assurance by the entity that they implement effective, efficient and transparent financial management and internal control system; Submission of Infrastructure Plan, Strategic Plan, and Annual Performance plan; Annual, Quarterly and monthly reports; Annual Cash Flow; and Bank statements (to confirm the balance before the transfer is made) Gateway Airport Authority Limited The table below indicates the entity that report to the MEG Name of Entity Legislative Mandate Financial Relationship Gateway Airport The Companies Act. Act No. R OOO Authority Limited 71 of 2008 unconditional grant Nature of Operations Management Company for the Polokwane International Airport

34 PART B: PERFORMANCE IN 0RMATION

35 1. AUDITOR GENERAL'S REPORT: PREDETERMINED OBJECTIVES The AGSA currently performs certain audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the report to management, with material findings being reported under the Predetermined Objectives heading in the Report on other legal and regulatory requirements section of the auditor's report. Refer to page 109 of the Report of the Auditor General, published as Part E: Financial Information. 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE 2.1 Service Delivery Environment For the year under review, the Department still had to deal with countless traffic violations resulting in unacceptably high road crash fatalities. Speed is the highest contributory factor as one of the causes of road accidents. This resulted in the intensifying of speed operations on critical routes in an attempt to stem the increase of accidents. Twelve thousand two hundred and thirty five (12 235) speed operations were conducted. High volumes of traffic in the Province necessitated road blocks in order to ensure road worthiness and confirmation of driver fitness. Three hundred and eighty (380) K78 roadblocks were conducted and one million eight hundred and thirty thousand ( ) vehicles were stopped and checked for both driver and vehicle fitness In order to reduce fatal crushes caused by drunken driving three thousand five hundred and fifty drunken driving operations (3 550) were conducted.

36 In order to sustain road infrastructure there is a need to manage loads on vehicles through weighing at weighbridges. Five thousand three hundred and forty two (5 342) weighing operations were conducted and eight hundred and forty thousand and four vehicles ( ) were weighed. These operations yielded the following results: speeding 121 arrests, drunken driving arrests, overloading 116 arrests, fraudulent driver licenses 17 arrests, reckless and negligent driving 17 arrests. We have also managed to discontinue vehicles for being un-roadworthy. We have impounded vehicles for operating without proper legal documents. Public transport conflicts remain a challenge in the province. To curb this form of violence one thousand nine hundred and thirteen (1 913) public transport deployments were conducted. One thousand two hundred and ninety six (1 296) schools were involved in road safety education and one hundred and twenty seven thousand five hundred and twenty nine ( ) learners were trained. Twenty five (25) new scholar patrol points were established in order to promote safe crossing of roads. Despite the intensified efforts by the Department fatalities increased from 834 in 2014/15 to 997 in 2015/16, which is an increase of 19.5percent The Department hasn't introduced or concluded any new subsidy contract and therefore continues to manage 26 contracts that have been in existence all along. Twenty two of those are Interim Contracts; three are negotiated with the last one being tendered. The contracts are distributed within 18 bus operators and the spread is such that there are a number of municipalities in the Province which as are not covered by subsidized bus operations. For the period under review, an average total of 959 busses were utilised in ferrying commuters. A total of trips were operated, covering kilometres and this benefitted passengers across the Province.

37 The breakdown of the Passengers along Districts is as follows: District Passengers Capricorn Mopani Vhembe Sekhukhune Waterberg Total Companies that are receiving government subsidy managed to create and sustain 1906 permanent Jobs in the form of drivers, dispatchers, admin and financial clerical staff over the financial year under review. At the end of the year, Department had paid R 652 million worth of subsidy through the 26 contracts managed. The Department has contracted Vix Questek to roll out the electronic bus trips monitoring system for the 2016/2017 financial year. The system will improve bus trips monitoring and alleviate possibilities of human manipulation and errors. The PRE has been fully functional since its establishment, in monitoring and overseeing public transport in the province as well as in deciding on applications relating to operating licenses for provincial public transport as required in terms of the National Land Transport Act. By the end of the 2015/16 financial year, 62 hearings were held in all 5 districts around the province applications for operating licences were decided upon by PRE and operating licences were processed during the period under review. The Department continued to render satellite operating licensing services at the following institutions: Northam Traffic Station, Lephalale Traffic Station, Groblersdal Roads Cost Centre, Dilokong Traffic Station, Polokwane Traffic Station, Senwabarwana Cost Centre and at the Phalaborwa and Tzaneen Traffic Stations. The regularity of the services is affected by acute shortage of personnel in district offices which are supposed to service these areas.

38 The structural assessment and the load test for the Thohoyandou lntermodal Facility was conducted during 2015/16. The structure requires remedial construction work to be done to render the building safe for use. A process of appointing service provides to do the remedial construction is at the Bid Evaluation Stage. Shova-Ka-Lula Bicycle project was implemented during the year under review. 271 Bicycles were distributed to deserving learners in 11 schools across the Province. Capricorn, Vhembe, Waterberg and Sekhukhune districts benefitted during 2015/16 while Mopani benefitted during 2014/15. Two ITPs are being developed for Greater Tzaneen and Musina Municipalities. Service Providers for these ITPs have been appointed. The Provincial Land Transport Framework has been reviewed and is undergoing final approval processes. The Department transferred an amount of R5m to the Limpopo Provincial Taxi Council (LPTC) for the administration and management of the taxi industry in the Province. 2.2 Service Delivery Improvement Plan The Department has completed a service delivery improvement plan. The tables below highlight the service delivery plan and the achievements to date. Main services and standards Main services Beneficiaries Current/actual Desired standard of Actual achievement standard of service service Program 3: Transport Operations To regulate and Taxi operators, bus Provision of safe 100 percent of 2015/2016 coordinate operators and commuters public transport passenger provision of safe operations transport modes, kilometres were public transport operators and subsidised operation routes of public transport operators (4,9percent) bus registered within 90 trips were days. monitored

39 Main services Beneficiaries Current/actual Desired standard of standard of service service Actual achievement Program 4: Transport Regulation Reduction of Road and Passenger. Quality certificates Conduct well license road crash Users, Communities, are being issued managed law compliance fatalities and municipalities, registering through enatis enforcement inspection serious injuries. authorities, motor vehicle Abnormal loads and operations on daily conducted, testing stations, driving events permits are basis in all Speed license testing centres, issued as per identified strategic operations manufactures, importers request. areas within the conducted, and builders of motor Province K78 Road vehicles and manufactures Block held. of number plates. Batho Pele arrangements with beneficiaries (Consultation access etc.) Current/actual Desired arrangements Actual achievements arrangements lmbizo/ MEC meets Communities, Participated in all Provincial Public Participation/EXCO meet the people Public government employees, the people. Conducted 1 Public Transport stakeholder Participation Service providers engagement at the Ranch Hotel and 1 Departmental lmbizo at Spitzpunt village under Ephraim Mogale Local Municipality. Popularization and Community and staff Consultation sessions were held to popularize and review the Advocacy members generic, transversal and domain standards including the development of Departmental Job Access Strategy and Gender Mainstreaming Strategy. The two strategies have been popularised to all staff of the department including SMS members and Disability Forums. Batho Pele Day Community members, Citizens Report, Statement of Public Service commitment, government employees, Service Delivery Improvement Plan, Domain Standards and Service providers, Batho-Pele posters were developed and distributed during Political organisation Provincial Batho-Pele Day and Build Up activities.

40 Current/actual arrangements Desired arrangements Actual achievements Management and Employees and Trade Labour Forum Unions Road safety All road users, m otorists, education at schools pedestrians; passengers, and Traditional municipalities, Councils government Road Safety departments, political Campaigns. organisations Service information tool Current/actual Desired information toe information teol 7 Departmental policies developed during the year under review were tabled in the forum including employer -employee related matters school children and adults were trained schools involved in road safety education. 25 Scholar patrol points established road safety awareness activities conducted Actual achievements Intra and internet Intra and internet Keeping officialsand citizens informed about events, programmes and performances of the Department. Road Safety Campaign Road Safety Campaign Road Safety Campaigns were conducted. Org-plus Org-plus Draft organisational structure developed utilising the system. lmbizo (both lmbizo (both employees employees and and community in general community in general) Established strong ties between the management and employees and between the Department and the community in general. Batho-Pele Day Batho-Pele Day Improved consulta:ion and accountability in terms of provision of services by the Department. Departmental HR Departmental HR Committees Committees Road shows and Road shows and awareness campaigns awareness campaigns Enhanced participative management on Departmental Programmes through Management and Labour (MANLAB) Forum, HR Planning ForurnEmployment Equity Forum, and Skills Development Forum. Community consultation to enhance the understanding operatior s of the Department

41 Complaints mechanism Current/actual complaints Desired complaints mechanism Actual achievements Mechanism Internal complaints Investigation of service delivery 01 Internal complaint was resolved and complaints is finalised within 30 working days closed, within Transport Regulation. Presidential Hotline Investigation of service delivery 145 cases captured from 2009 to date, all attended and resolved, which 100 percent complaints is finalised within 30 resolution is. working days Premier"s Hotline Investigation of service delivery 59 Cases captured and resolved / closed since the inception of Premier"s hotline, complaints is finalised within 30 which is 1 OOpercent working days 2.3 Organisational environment Following the reconfiguration of the Limpopo Provincial Administration, the Department had to restart with the structure review process for the new Department of Transport. Consultations were conducted with all employees, Executive Management and Organised Labour. The final draft organisational structure is in place, pending principle approval by the Executive Authority and further consultations with Office of The Premier and the Minister of Public Service and Administration. As an endeavor to increase capacity, 339 posts were filled during the year under review including 3 SMS posts.

42 2.4 Key policy developments and legislative changes 7 Departmental policies developed during the year under review were tabled in the forum including employer-employee related matters. Wellness Management Policy Version 1 Dress Code Policy Version1 Health and Productivity Management Policy Version 1 Whistle Blowing Version 1 Bereavement Policy Version 1 Facilities Management Policy Version 1 Business Continuity Management Policy Version 1 3.STRATEGIC OUTCOME ORIENTED GOALS Programme Strategic Goal Achievements Administration Enhanced Corporate Support The Department collected R419, 630 (99.05) and Good Governance against the estimated budget of R423, 666 million. Transport Operations Accessible, affordable, safe passengers benefitted through 26 and integrated transport bus subsidy contracts system Transport Regulation Safe and secured transport Road traffic law enforcement activities were sector conducted. Fatalities increased from 834 in 2014/15 to 997 in 2015/16

43 4. PERFORMANCE INFORMATION BY PROGRAMME 4.1. Programme 1: Administration The purpose of programme is to provide the Department with the overall management and administrative, strategic, financial and corporate support services in order to ensure that it delivers on its mandate in an integrated, efficient, effective and sustainable manner. The following are the su rogrammes: Office of the MEC Management of the Department Corporate Support Departmental Strategy Strategic objectives, performance indicators planned targets and actual achievements Strategic objectives Programme Name: Administration Strategic Actual Achievement Planned Target Actual Deviation from Comment on objectives 2014/ /2016 Achievement planned target to deviations 2015/2016 Actual Achievement for 2015/2016 Improved Un-qualified Report Un-qualified To be provided To be provided after To be provided institutional capacity Report after July 2016 July 2016 after July 2016 and accountability

44 Performance indicators Programme / Sub programme: 1.3: Corporate Support Performance Actual Planned Actual Achievement Deviation from Commenton Indicator Achievement Target 2015/2016 planned target to deviations 2014/ /2016 Actual Achievement for 2015/2016 Number of skills None None programmes implemented Number of learnership None None programmes implemented Amount of revenue R m R m R419, 631m R4 035m Non-payment of collected revenue collected by municipalities (Thabazimbi, Musina, Mutale, Ba-Phalaborwa and Mookgopong) Number of Information None None and Communication Technology initiatives implemented Reasons for all deviations There is no deviation experienced in both ski lls programmes and learnersh ip targets have been reached. Non-payment of revenue collected by municipalities (Thabazimbi, Musina, Mutale, Ba-Phalaborwa and Mookgopong)

45 Strategy to overcome areas of under performance The Department was in consultation with all Municipalities who are in areas and arrangements were made for a monthly down payment to recover all outstanding debts. Should Municipalities default on this arrangements face value forms will be withheld. Changes to planned targets No changes to planned targets were made Linking performance with budgets Sub-programme expenditure 2014/2015 Sub-Programme Name Final Actual (Over)/Under Appropriation Expenditure Expenditure Office of the MEC 1,822 1, Management 20,034 12,654 7,380 Corporate Support 562, ,170 36,496 Departmental Strategy 5,658 5, Total 590, ,101 44, /2016 Final Actual (Over)/Under Appropriation Expenditure Expenditure ,377 10, , ,446 2,498 5,738 6,445 (707) 487, ,54 2, Programme 2: Transport Infrastructure The purpose of the programme is to promote accessibility and the safe affordable movement of people, goods and services through t he provision and maintenance of transport infrastructure that is sustainable, integrated and environmentally sensitive, and which supports and facilitates social empowerment and economic growth.

46 The following are the su_,rogrammes: Programme Supportlnfrastructure; Infrastructure Planning; Infrastructure Design; Construction; and Maintenaice Strategic objectives, performance indicators planned targets and actual achievements Strategic objectives Programme Name: Transport Infrastructure Strategic Actual Achievement Planned Target Actual Deviation from Comment on deviations objectives 2014/ /2016 Achievement planned target 2015/2016 to Actual Achievement for 2015/2016 Integrated public Implement infrastructure Number of 0 1 Following the structural transport plan in line with integrated assessment for infrastructure Municipal IDP priorities transport plans Thohoyandou lntermodal and Facility, the load test was infrastructure done. Process to appoint completed service providers for remedial construction is at the level of BEC Reasons for all deviations The taxi rank building of the Thohoyandou lntermodal Facility has not been commissioned since its completion due to some perceived and some obvious structural inadequacies.

47 A firm of cons ulting structural engineers was appointed to conduct a structural assessment in two stages, to be followed by two stages for the design and implementation of remedial works. The two investigation stages have been completed and the analysis was based on SANS design codes and materials used. Detail designs for the remedial work as well as the fac;ade for the building have been completed. The process to appoint service providers for remedial construction is at the level of BEC. Performance indicators Performance Actual Planned Target Actual Deviation from Comment on deviations Indicator Achievement 2015/2016 Achievement planned target to 2014/ /2016 Actual Achievement for 2015/2016 Sub-Programme: 2.2 Infrastructure Planning Number of Appointment of service municipalities providers done during with ITPs December Project to be completed before end of 2016/201?financial year. Provincial The delay in approval of Transport Natmap Synopsis and Update Masterplan by National Department of developed Transport. The project would have the Limpopo Natmap Chapter as its basis.

48 Performance Actual Planned Target Indicator Achievement 2015/ /2015 SubProgramme: 2.4 Construction Actual Deviation from Achievement planned target to 2015/2016 Actual Achievement for 2015/2016 Comment on deviations Number of The taxi facility is 1 lntermodal 87percent complete Facilities in construction Number of Traffic 2 5 infrastructure facilities in construction 0 1 Following the structural assessment for Thohoyandou lntermodal Facility, the load test was done. Process to appoint service providers for remedial construction is at the level of bid evaluation committee. 0 5 Lack of funding Subprogramme: 2.5: Maintenance Number of 8 8 weigh bridges calibrated (annually )to SABS standard 8 0 None

49 Performance Actual Planned Target Actual Deviation from Comment on deviations Indicator Achievement 2015/2016 Achievement planned target to 2014/ /2016 Actual Achievement for 2015/2016 Number of provincial airfields maintained These projects did not commence as it was decided to do a viability study which will be conducted during 2016/17 financial year before further investments are made to the 2 airfields. Reasons for all deviations The airfields projects did not commence as it was decided to do a viability study which will be conducted during 2016/17 financi al year before further investments are made to the 2 airfields. The taxi rank building of the Thohoyandou lntermodal Facility has not been commissioned since its completion due to some perceived and some obvious structural inadequacies. A firm of consult ing structural engineers was appointed to conduct a structural assessment in two stages, to be followed by two stages for the design and implementation of remedial works. The two investigation stages have been completed and the analysis was based on SANS design codes and materials used. Detail designs for the remedial work as well as the fa9ade for the building have been completed. The process to appoint service providers for remedial construction is at the level of BEC

50 Strategy to overcome areas of under performance The Department is in the process of appointing service providers for remedial construction of Thohoyandou lntermodal Facility. The bid was closed and is at the Bid Evaluation Level. Changes to planned targets None 4.3. Programme 3: Transport Operations Programme purpose: To plan, regulate and facilitate the provision of integrated land transport services through co-ordination and co-operation with national planning authorities, CBO's NGO's and the private sector in order to enhance the mobility of all communities particularly those currently without or with limited access. The following are the sub-programmes: Programme Support Operations Public Transport Services Transport Safety and Compliance Transport Systems Infrastructure Operations

51 Strategic objectives, performance indicators planned targets and actual achievements Strategic objectives Programme Name: Transport Operations Strategic Actual Planned Target Actual Deviation from Comment on deviations objectives Achievement 2015/2016 Achievement planned target /2016 to Actual Achievement for2015/2016 Number of public More deployment transport conducted due taxi deployment conflicts conducted Road crash To enhance road?percent reduction Road crash Most of the None fatalities and traffic safety awareness in road fatal fatalities accidents were offences reduced and education crashes per annum increased by caused by over programmes by 19.5percent speeding and 2014 human behaviour. Reasons for all deviations The number of passengers using subsidised bus transport is a mere projection and the Department does not have control over the actual number of passengers that will be using the services. Operators reported 3.4 milbn as having being transported through trips that were not subsidized. Without an electronic system the authenticity of passenger information and general statistical information, cannot be confirmed. Strategy to overcome areas of under performance The introduction of an electronic system will curb the inconsistencies as it will provide reliable passenger and operational s tatistical information such as r outes, trips and kilometres. A service provider for this purpose has been appointed since the beginning of the 2016/2017 financial year.

52 Performance indicators Sub-programme: Public Transport Services Strategic Actual Planned Target Actual Deviation from Comment on objectives Achievement 2015/2016 Achievement planned target deviations 2014/ /2016 to Actual Achievement for 2015/2016 Number of routes None None subsidised Number of The target was a kilometres projection based on an subsidised anticipated reduction after verification of data through an electronic system, whose implementation was delayed. Number of trips subsidised Number of PRE - 60 hearings conducted The target was a projection based on anticipation of rationalised number of trips 2 Additional was due to need to address backlogs Subprogramme: 3.3: Transport Safety and Compliance Number of road None safety awareness interventions conducted

53 Sub-programme: Public Transport Services Strategic Actual Planned Target objectives Achievement 2015/ /2015 Number of schools involved in road safety education programme Number of bus subsidised trips monitored Number of public transport deployments conducted Number of new scholar patrol points established Actual Deviation fror Comment on Achievement planned target deviations 2015/2016 to Actual Achievement for 2015/ None Special monitoring sessions were conducted by Head office personnel and this contributed to the additional trips monitored More deployment conducted due taxi conflicts 25 0 None Reasons for all deviations The number of passengers using subsidised bus transport is a mere projection andtle Department does not have control over the actual number of passengers that will be using the services. Operators reported 3.4 million as having being transported through trips that were not subsidized. Without an electronic system the authenticitypafssenger information and general statistical information, cannot be confirmed.

54 Strategy to overcome areas of under performance The introduction of an electronic system will curb the inconsistencies as it will provide reliable passenger and operational statistical information such as Routes, trips and kilometres. A service provider for this purpose has been appointed since the beginning of the 2016/2017 financial year. Changes to planned targets None Linking performance with budgets Sub-programme expenditure 2014/ /2016 Sub- Programme Final Actual ( Over)/U nder Final Actual ( Over)/U nder Name Appropriation Expenditure Expenditure Appropriatio Expenditure Expenditure n Programme 1,134 1, ,364 1,363 1 Support Operatiom Public Transport 662, ,657 3, , ,749 8,128 Services Transport Safety 8 27,686 27, ,663 38,663 0 Compliance Transport Systems 3,696 3, ,891 4, Infrastructure 40,900 40, ,688 46,686 2 Operations Total 736, ,884 4, , ,333 8,150

55 4.4. Programme 4: Transport Regulation To ensure the provision of a safe transport environment through the regulation of traffic on publ ic infrastructure, law enforcement, implementation of roads safety education and awareness programmes and the registration and licensing of vehicles and drivers. The following are the sul:programmes: Programme Support Regulations Transport Administratiorand Licensing Operator Licence and Permits Law Enforcement Strategic objectives, performance indicators planned targets and actual achievements Strategic objectives Programme Name: Transport Regulation Strategic objectives Actual Planned Target Actual Achievement Deviation from Comment on Achievement 2015/ /2016 planned target to deviations 2014/2015 Actual Achievement 2015/2016 Road crash fatalities 7 percent 7 percent Road crash fatalities 163 more fatalities Targets not and traffic offences reduction in decrease in increased by than previous year achieved due to human behaviour reduced road fatal road crash 19.5percent crashes per annum fatalities and traffic offences

56 Reasons for all deviations More operations conducted to minimise fatal crashes Decrease was due to officials deployed on different operations More operations conducted as per mandate from RTMC Zebediela and Groblersbrug T.C.C are fully operational Strategy to overcome areas of under performance None Changes to planned targets None Linking performance with budgets Sub-programme expenditure 2014/ /2016 Sub-Programme Final Actual (Over)/Unde Final Actual Name Appropriation Expenditure Expenditure Appropriation Expenditure Programme 2,032 1, ,877 1,339 Support Office Operator Licence 29,380 28,102 1,278 28,072 27,225 and Permits Law Enforcement 400, ,742 17, , ,488 Transport 34,517 14,170 20,7 21,900 18,784 Administration and Licensing Total 466, ,503 40, , ,836 (Over)/Under Expenditure (4,256) 3,

57 Performance indicators Programme/ Sub-programme:4.2: Transport Administration and Licensing Performance Actual Planned Actual Deviation from Comment on deviations Indicator Achievement Target Achievement planned target to 2014/ / /2016 Actual Achievement 2015/2016 Number of None compliance inspections conducted Programme/ Sub-programme:4.4 :Trafficlaw Enforcement Number of speed More operations operations conducted to reduce conducted fatal crashes Number of Depended on the flow of vehicles weighed Number of More operations drunken driving conducted to minimise operations fatal crashes conducted Number of Decrease was due to vehicles stopped officials deployed on and checked different operations Number of road More operations blocks conducted conducted as per mandate from RTMC Number of Zebediela and weighing Groblersbrug T.C.C are operations fully operational conducted traffic

58 5.TRANSFER PAYMENTS 5.1 Transfer payments to public entities Name of Public Services rendered by the Amount Entity public entity transferred to the public entity Gateway Airports Management of airport 45,300 Authority Limited operations at Polokwane International Airport Total 45,300 Amount spent Achievements percent Spent by the public of the public entity entity 45,300 45, percent 45,300 45, Achievements of the Public Entity GAAL is responsible for the management of airport operations, which inclu des the handling of aircraft and passengers, and the maintenance of airport infrastructure at the Polokwane International Airport. Performance of GAAL is monitored through the Departmental Entity Oversight Committee on a quarterly basis. The Provincial T reasury has quarterly budget bi -laterals with all Departments and the Entities at which expenditure in line with annual performance plans are monitored. The flight statistics of Polokwane International Airport (PIA) were as follows for the 2015/2016 financial year: GAAL Flight Statistics 2015/16 Financial Year Annual Quarter 1 Quarter 2 Quarter 3 Quarter4 Total Description Target output output output output Achieved Number of scheduled domestic aircraft handled Number of non-scheduled domestic aircraft handled Number of regional aircraft handled Number of international aircraft handled Number of scheduled domestic passengers handled

59 Annual Quarter 1 Quarter 2 Quarter 3 Quarter4 Total Description Target output output output output Achieved Number of non-scheduled domestic passengers handled Number of regional passenger handled Number of international passengers handled Transfer payments to all organisations other than public entities The table below reflects the transfer paymenteade for the period 1 April 201fi:> 31 March 2016 Name of transferee Type of Purpose for Did the dept Amount Amount Reasons for organisation which the funds comply with s transferred spent by the funds were used 38 (1) (j) of the {) the entity unspent by PFMA the entity None NIA NIA NIA NIA NIA The table below reflects the transfer payments which were budgeted for in the ped 1 April 2015 to 31 March 2016, but no transfer payments were made. Name of transferee Purpose for which Amount Amount Reasons why funds were not the funds were to budgeted for transferred transferred be used () () None NIA NIA NIA NIA 6.CONDITIONAL GRANTS 6.1 Conditional grants and earmarked funds paid The table below describes each of the conditional grants and earmarked funds paid by the department Conditional Grant 1: Department/ Municipality to whom the grant has been transferred None Purpose of the grant N/A Expected outputs of the grant N/A Actual outputs achieved N/A Amount per amended DORA N/A Amount transferred () N/A Reasons if amount as per DORA not transferred N/A Amount spent by the department/ municipality () N/A Reasons for the funds unspent by the entity N/A Monitoring mechanism by the transferring department N/A

60 6.2 Conditional grants and earmarked funds received The table below describes each of the conditional grants and earmarked funds received by the department Conditional Grant PRMG and PTOG: Department who transferred the grant National Department of Transport Purpose of the grant The Public Transport Grant is for the subsidisation of public transport commuters Expected outputs of the grant Number of kilometres subsidised Actual outputs achieved kilometres were subsidised and passengers benefitted through the Public Transport Operations Grant (PTOG) Amount allocated R298,298, Amount received () R298l98, Reasons if amount as per DORA was not received Amount spent by the Department () Reasons for the funds unspent by the entity Not Applicable Not Applicable R298,298, Monitoring mechanism by the receiving department Subsidised bus services are manually mo nitored by Transport Officers. 7. DONOR FUNDS 7.1 Donor Funds Received Name of donor Full amount of the funding Period of the commitment Purpose of the funding Expected outputs Actual outputs achieved Amount received in current period () Amount spent by the Department () Reasons for the funds unspent Monitoring mechanism by the donor RTMC R60m MTEF Road Safety Projects Safer Road Usage Not measured yet R6.6m R7.2m Delayed supply chain processes Monthly reporting

61 8. CAPITAL INVESTMENT 8.1 Capital investment, maintenance and asset management plan Acquisition plan The Department has an asset management plan which includes Acquisition, Verification and Disposal plan. All new assets were acquired as per approved procurement and acquisition plans. Verification plan The Department has conducted physical asset verification twice during the financial year. The first physical verification was done during the implementation of BAUD system wherein all the assets were scanned and uploaded into the electronic management system. The second physical verification took place during the fourth quarter. Disposal Plan Assets were disposed as per disposal management plan. Auctions were conducted in all 5 Districts during 29 February 2016 to 18 March 2016 with the proceeds of R3, 063 million realised. Aganang and Fetakgomo practical completion has been done: the practical completion certificate has been issued and signed. What is now left is the SABS to approve the testing equipment for both vehicle testing stations. Currently there are no projects that are still in progress and there are no plans to close down or down-grade any current facilities. There was no maintenance of infrastructure for the period under review. Currently there are no developments relating to the infrastructure maintenance that are expected to impact on the Department's current expenditure.

62 2014/2015 Infrastructure projects Final Actual Appropriaion Expenditure New and replacement assets Existing infrastructure - - assets -Upgrades and additions -Rehabilitation, renovations and refurbishments -Maintenance and repairs Infrastructure transfer -Current -Capital Total /2016 (Over}/Under Final Actual (Over}/Under Expenditure Appropriation Expenditur Expenditure

63 Item Transport Assets Purchases 2015/16 R OOO Disposals 2015/16 R OOO Computers Furniture and Equipment R4 725 OOO R851 OOO R260 OOO R328 OOO Other Machinery and Equipment Total R2 672 OOO R OOO R107 OOO R OOO Measures taken to ensure that the department's asset register remained up-todate during the period under review The Asset Register was updated on regular basis on the BAUD system. However, technical problems experienced on the system caused the Department to revert back to the excel spreadsheet. The Department will be reporting to AGSA on excel/spreadsheet which is centralized at head office. The current state of the department's capital assets, for example what percentage is in good, fair or bad condition Most of the Departmental assets are still in fair condition, assets that are in poor condition have been disposed of during the financial year. There were no major maintenance projects that have been undertaken and no backlogs during the period under review.

64 PART C: GOVERNANCE Annual Report for 2015/2016 Financial Year

65 1. INTRODUCTION The Department has the following structures to ensure Good Governance: Risk Management Committee Executive Management Committee Human Resource Forum Employment Equity Forum Human Resource Planning Committee Skills Development Committee Management and Labour Forum Monitoring and Evaluation Committee ICT Strategic Committee ICT Governance Committee Budget Committee Entity Oversight Committee 2. RISK MANAGEMENT In carrying out Enterprise Risk Management, the Department is using the Risk Management Policy and the Risk Management Strategy which was reviewed during the 2015/16 financial year. The approved Risk Management Strategy was implemented to ensure that all risks are properly managed, improved the internal control and governance. Risk identification and assessment are conducted on a regular basis to identify new and emerging risks. The Department conducted a risk assessment session during the fourth quarter of the 2015/16 financial year to identify strategic and operational risks for 2016/17 financial year, these includes the top ten Departmental risks. The Risk Management Committee (RMC) and District Risk Management Committees (DRMC) have been established and meetings were held on a quarterly basis to review the effectiveness of the Department's risk management systems, practices and procedures. The Audit Committee met on a quarterly basis to provide an independent and objective advice to the Accounting Officer on the adequacy and effectiveness of risk management in the Department, including recommendations for improvement.

66 Risk Risk Mitigation No C C 30 Delayed use of Implementation of proposed the Thohoyandou structural remedial measures intermodal facility as per structural Engineer recommendations Business and service delivery interruptions ii: Develop and implement integrated Business Continuity Plan. Status as at Year End The load test on the holding slab of the Taxi facility was completed in August 2015 and the remedial construction designs. The tender for the remedial construction was advertised on 27/11/2015 and closed on 28/02/2016. The Bid Adjudication process is not yet corn leted. The Business Impact Analysis, Risk Assessment, identification of Business Continuity Management Teams has been finalized in all the institutions. The Department has developed a Business Continuity Management Policy. 5 Occupational Appointment of a Service injuries and Provider to conduct the diseases Baseline Safety Health, Environment, Risk ( SHER) profile Implementation of the Baseline Safety Health, Environment, Risk (SHER) profile The Department is at stage 1 of the Business Continuity Management process.the analysis of the collected data for Corporate Services is still in ro ress The tender was advertised and closed on 21 August Acceptance of the offer dated 15/11/2015 for PUDP 653: Baseline Occupational Safety Health and Environmental Risk Assessment was send to the suitable Service Provider. The Service Provider was appointed and a meeting was held on 01/02/2016 between the Service Provider and the Department and the SLA was signed. 6 Ageing fleet Replacement of 106 aged vehicles 13 The Service Provider amended the initial appointed project team members and currently the department has commenced with the process of verifying the documents for the newly appointed project team 30 new vehicles were procured during the second quarter, 36 were procured during the J rd quarter and were allocated to Head Office and various districts. In total 66 new vehicles were procured during the current financial year and the remaining vehicles could not be procured due to budget cuts.

67 A total number of 10 risks were prioritized f or 2015/16 Financial Year, for two risks the Department has made an average progress in the implementation of mitigating measures. The outstanding risks were not mitigated due to budgetary constraints e.g. the deteriorating building infrastructure (workshop facilities). The table below depicts the status of the prioritized risks as at 31 March 2016: Risk Risk Mitigation Status as at Year End No 10 Potential paymenuremuner ation of unrendered bus subsidised services Procurement and phased implementation of an electronic bus monitoring system The evaluation of the tender was completed on 28 September The Bid was awarded to Vix Questek. 12 Non-recovery of debts /Irrecoverable debt s To investigate how the tax debt emanated through PERSAL and SARS system and recover the debt from leave gratuity or pension fund 13 The tax recalculations are done and recovered from leave gratuity and if not the debts are created and referred to Legal Services to facilitate the recovery thereof. Debts should be referred to Legal Services Unit timeously to facilitate the recovery thereof. Time to time engagement with the relevant (nonpaying) Municipalities through National Treasury (i.e. Musina, Mutale, Makhado, Thabazimbi and Ba-Phalaborwa) and / or COGHSTA 06 Municipalities namely Thabazimbi, Modimolle, Ba-Phalaborwa, Mutale, Musina and Mookgophong were not paying the Department from the 1 st to the 3rd quarter. The Department of Co-operative Governance, Human Settlement and Traditional Affairs, Provincial and National Treasury were consulted to assist with the recovery of the debts. During the 4 th quarter the Department was not issuing the face value forms to the Municipalities that were not paying. After the intervention all the Municipalities are paying according to the signed commitment agreement.

68 Risk No Risk C Mitigation Status as at Year End 7 Poor security and access control mechanisms( at government garages and traffic institutions ) C ii: Installation of security fences and security lighting at Government garages and Traffic institutions The project was evaluated on 14 May 2015, during June the tender was advertised and evaluated. There was no suitable Service Provider. The funds that were allocated for this project were surrendered during the 3 rd quarter to Provincial Treasury.The project is included in the infrastructure plan for 2016/17 Financial Year 8 Deteriorating building infrastructure (e.g. workshop facilities and Limpopo Traffic Training College ) Development and implementation of maintenance plans Upgrading of the Limpopo Traffic Training College facility in Phases The draft maintenance plan is in place however funds are not available to implement the plan The College remains dilapidated as funds were surrendered during adjustment budget to Provincial Treasury. However the Department conducts day to day maintenance Upgrading of facilities at Mampakuil as per needs provided The process for construction could not be started due to lack of funds however recommendations were made to the Provincial Infrastructure Committee to fund the project. However the Department conducts day to day maintenance 9 Weaknesses in internal controls for operating license system and supply chain management 32 High fatality rate Withdrawal of irregularly issued operating licenses Conduct road safety education, awareness and traffic law enforcement Conduct compliance inspections and monitoring of the Driver's Licence Testing Centres (DL TCs),Registering Authorities and Vehicle Testing Station (VTS) The Provincial Regulatory Entity (PRE) which has to adjudicate on the withdrawal of operating licenses has only been operational as from 01 June During the J rd quarter the Districts submitted the alleged irregular issued operating licenses to the PRE for consideration, 58 files were from Capricorn, 28 files from Mopani, 12 files from Vhembe, 04 files from Sekhukhune and 01 file from Waterberg. The meeting was scheduled on 22 April 2016 The road safety awareness, speed operations, weighing of vehicles, drunken driving operations, vehicles were stopped and checked, compliance inspection were conducted,road blocks held as indicated on the performance information for programme 4

69 Risk Risk Mitigation Status as at Year End No Revive the Provincial Chief Magistrate meetings with the Traffic Management to address cancellation and withdrawal of summonses The Magistrate meetings were held throughout the quarters in all the 05 Districts to address the issue of cancellation and withdrawal of traffic summonses 3. FRAUD AND CORRUPTION The Department has an Anti-Fraud and Corruption Policy, a Whistle Blowing Policy and a Fraud Prevention Plan which are in place and approved by the Head of the Department. All cases of fraud and corruption that are reported directly to the Department, through the National Anti -Corruption Hotline, Presidential Hotline, Premier Hotline and Chapter 9 Institutions are investigated and completed within the required timeframe. In 2015/2016, 40 cases wer e reported and investigated, 30 cases completed, whilst 10 cases are carried forward with the investigations continuing to the current financial year 2016/2017. Education, training and awareness on fraud and corruption are timeously conducted in various units/sections and districts of the Department. For example 32 awareness/educational workshops were conducted at Head Office, Traffic Stations and Districts wherein 477 employees were reached. Officials of the department and the general public are encourag ed to report fraud and corruption activities to the dedicated Anti-Fraud and Corruption Unit within the Department and those who choose to remain anonymous, their identities are protected by the Whistle Blowing Policy of the Department that is in place and approved by the MEC.

70 4. MINIMISING CONFLICT OF INTEREST All 33 SMS members in the Department completed the financial disclosure forms which were submitted to the Public Service Commission. Control systems are in place as all members involved in Supply Chain Management processes are required to disclose, sign the conflict of interest register, and recuse themselves where conflict of interest exist during Specification, Evaluation and Adjudication stages. All members involved in Supply Chain Management processes are required to declare their interests as well as to sign the oath of secrecy on the prescribed forms respectively, and to recuse themselves where conflict of interest exist during specification, evaluation and adjudication stages. SCM also checks with HR for persal information to ensure that the Department could detect if there are no public servants in the list of prospective service providers. 5. CODE OF CONDUCT The Department subscribes to the Public Service Code of Conduct and the transgression thereof is dealt with through the Disciplinary Code process. The Code of Conduct is promoted to enhance professional ethics at the work place. This is done through compliance in the following areas: Disclosure of Financial Interests and Conflict of Interest. Anti-Fraud and Corruption measures. Prevention of financial misconduct.

71 6. HEAL TH SAFETY AND ENVIRONMENTAL ISSUES The Department has put in place several mechanisms / measures in order to address reported OHS matters. Those mechanisms include: Quarterly SHE inspections and meetings are conducted to identify the health and safety hazards and possible mitigating measures. SHE Committees have been established and are functioning well. Occupational Health and Safety advisory and Safety Talks sessions are conducted regularly to educate employees on health and safety issues. Management of Occupational Injuries and Diseases These cases have some potential risks in a number of ways i.e.: Loss of employees due to being declared medically unfit or death. Excessive financial costs incurred by the Department in acquiring medical assistance. Excessive legal fees in litigations on COID cases. The types of cases involve: multiple injuries due to car accidents and sprains, fractures and cuts. 7. PORTFOLIO COMMITTEES Date of the Issues raised by the committee Response by the department Resolved meeting Yes/No 15 May 2015 Why did the Department move from?percent to It was an error and the Annual Yes 2percent on road fatalities, The Department to provide progress on lntermodal facility, Briefing on suspension of management, Appointment of women on management positions Performance Plan has been amended from 2percent to?percent on road fatalities. The Department submitted a report to the Portfolio Committee Verbal response Verbal response

72 Date of the meeting 18 September 2015 October- December 201 f 4 th Quarter Issues raised by the committee Response by the department Resolved Yes/No Portfolio Committee did not form a quorum. No None - resolutions taken. There were no meetings held during the quarter None - There were no meetings held during the quarter None - 8. SCOPA RESOLUTIONS The SCOPA hearing was scheduled for 28 J anuary 2016 to discuss the 2012/ 13, 2013/14 resolutions and 2014/15 questions, the meeting was postponed. I Resolutior Subject Details Response by the department Resolved No. Yes/No 2012/13 Unqualified audit opinion with emphasis of matter (05 resolutions were received on 02 December 2015 and responded to awaitinq for thresults ) 2013/14 Unqualified audit opinion with emphasis of matter (08 resolutions received on 02 December 2015 ar d responded to awaiting for the results ) 2014/15 Unqualified audit opinion with emphasis of matter08 questions were received ancesponded to on 02 December 201 waitinq for the results I I 9. PRIOR MODIFICATIONS TO AUDIT REPORTS The Department got an unqualified audit opinion with emphasis of matters during 2012/13, 2013/14 and 2014/15 financial years. An action plan has been developed to address the 45 audit findings that were raised by the office of the Auditor - General South Africa during the 2014/15 Financial Year. The progress is monitored through quarterly Audit Steering Committee and monthly Executive Management meetings. 10. INTERNAL CONTROL UNIT The Department has a Compliance Component which is responsible for monitoring of compliance to financial regulations, policies and internal controls. The Clean Audit 2014 Strategy has been developed by the Department during 2011/2012 financial year. The Compliance Component has monitored progress towards the implementation of the Clean Audit Strategy 2014 (which consists of follow -up on

73 Auditor-General findings, Internal Audit and other assurance providers, conducting of inspections on internal controls), this was done on a monthly basis for Head Office and the five Districts. 11. INTERNAL AUDIT AND AUDIT COMMITTEES (a)key activities of the internal audit 11.1 Key activities to provide assurance in respect of the following: Key objectives of the internal audit function During the 2015/16 financial year, the key objective of the internal audit function was to provide assurance on the department's risk management system, internal controls and governance arrangements Key activities and objectives of the internal audit During the 2015/16 financial year, the internal audit function was tasked with the provision of assurance in respect of the following: Safe guarding of assets Reliability and integrity of performance information Reliability and integrity of financial information Ensure that the department's resources were acquired and are used in an economic, efficient and effective manner Key objectives of the internal audit The objective of Internal Audit is to provide assurance on risk management process, internal control and governance arrangements.

74 (b)specify summary of audit work done by The following audits were conducted during the current financial year under review: Risk based audits Performance Management Development System Operating License Law enforcement Road Safety Education and Awareness Revenue Management Reliability and Integrity of Performance Information In Year monitoring Bus Subsidies Asset Management Transfer Payments Subsistence and Travelling allowances Interim Financial Statements DoRA- (PTOG) Forensic Audit General Fraud Risk Controls IT audit IT Project Implementation (c) Key activities and objectives of Audit Committee 1.KEY ACTIVITIES Audit Committee (AC) has satisfactorily performed its mandate as enshrined in Sections 76 (4) (d) and 77 of the Public Finance Management Act (Act No. 1 of 1999) & Treasury Regulations 3.1 which states that AC must, amongst others, review the following: I. the effectiveness of the internal control systems; II. the effectiveness of the internal audit function; Ill. the risk areas of the institution's operations to be covered in the scope of internal and external audits;

75 IV. the adequacy, reliability and accuracy of the financial information provided to management and other users of such information; V. any accounting and auditing concerns identified as a result of internal and external audits; VI. the institution's compliance with legal and regulatory provisions; and VII. the activities of the internal audit function, including its annual work programme, coordination with the external auditors, the reports of significant investigations and the responses of management to specific recommendations. During the financial year 2015/2016, the AC has met at least six (6) times (excluding special meetings) to perform its roles and responsibilities as stipulated in the AC Charter. In addition, the AC held its AC Annual Strategic Planning Workshop from February 2016 to review its 2015/2016 performance and plan for the 2016/2017 financial year. The Central Audit Committee (CAC) structure assumed the responsibilities of ensuring that all the Resolutions taken during the Annual Strategic Planning for the AC are implemented. However, from the total of 34 Resolutions taken, only 28 were successfully implemented and one of the unresolved resolutions was overtaken by events while five (5) were carried to the financial year 2016/2017. The one resolution overtaken by events relates to the induction and orientation of the AC members about the mandate of the departments they are serving. Both the AC Charter and the Accounting Officer's Reporting Framework to the AC were reviewed and adopted during the Annual AC Strategic Planning. National Treasury 360 Degree Evaluation model was used to evaluate the work and performance of the AC. The final evaluation score yielded an average score of 4.14 (from rating of 1-5) when combining the average scores of all the AC Stakeholders.

76 Resignations and terminations from the AC membership were as per table below: 1. Mr. Malose Reginald Cluster 04 AC Resigned Makgetha Member The following table stipulate the nature and activities of each AC meeting/event held: NO. PERIOD NATURE OF THE AC MEETING INFORMATION/ DOCUMENTS REVIEWED February 2016 May 2015 June 2015 AC Annual Strategic Planning Workshop Review of Fourth Quarterly Performance Review and Draft Annual Report (Including Draft Annual Financial Statements) before submission to the Auditor General Approval of the Three Year Internal Audit Plans plus Annual Plans a.audit Committee Charter, b. Internal Audit Charter, c.accounting Officer"s Reporting Framework to the AC, d.value adding of the AC to the Client Departments, e. Reflection on the Status of the Previous Year AC Resolutions, f.360 Degree Evaluation Feedback. a.performance Information, b. Draft Annual Financial Statements, c.accounting Officer Report to the AC (Financial & Non-Financial), d.quarterly Risk Management Report, a.scopa Resolutions Implementation Progress, f.auditor General Audit Findings Implementation Progress, g. Internal Audit Quarterly Progress Report. a.three Year Internal Audit Plans plus Annua I Plans. 4. July 2015 Review of Draft Audit Management Reports and a. Draft Management Reports, b. Draft Audit Reports. 5. September Review of First Quarter Performance 2015 Reports (Financial and Non Financial) a.all information under No. 2 except point a & b,and b. Procurement Plans of the departments.

77 NO. PERIOD NATURE OF THE AC MEETING INFORMATION/ DOCUMENTS REVIEWED 6. November Review of Second Quarter 2015 Performance Reports (Financial & Non-Financial) a.all information under No. 2 except point a & b. 7. March Approval of the Three Year Internal 2016 Audit Plan plus Annual Plan and Auditor General Audit Coverage Strategy b.aii information under No. 2 except point a & b, c.three Year Internal Audit Plans plus Annual Plans for 2016/2017, and d.auditor General Audit Coverage Strategy. 2.0BJECTIVES OF THE AUDIT COMMITTEE The Strategic Objectives of the AC as stipulated in its approved written Terms of Reference (AC Charter) are to ensure: a. the availability of a well-resourced, functional and sustained internal audit function; b. sound relationship with all assurance providers, oversight structures and other stakeholders; c. effective and efficient Internal and External Audit processes d. promotion of sound functional interaction between the internal audit and other assurance providers; e. that there is adequate and effective corporate governance, encompassing fraud and risk management, information technology, internal control, financial management and reporting systems; f. Accounting Officers are fully supported in fulfilling their responsibilities in terms of the PFMA; g. accountability in terms of financial management and performance information for effective service delivery; and h. Compliance with relevant laws and regulations.

78 Attendance of audit committee meetings by audit committee members The table below discloses relevant information on the audit committee members: CLUSTER 04 (01 APRIL MARCH 2016) M.A.F MOJA M.R MAKGETA P.R MNISI 1.MBL 2.Advanced Treasury Management 3.B COMM 1.CA(SA) 2.MBA 3.B COM: Honours 4.B COM: Accounting 1.LLB 2.post graduate certificate in compliance management EXTERNAL EXTERNAL EXTERNAL N/A N/A N/A 01 January January January 2014 To Date To Date 05 T 1.CIA BOL TMAN 2.CGAP 3.CCSA 4.B TECH: Internal Auditing 5.Certificate in Forensic Examination EXTERNAL N/A 01 To Date January (Co-opted) 12. AUDIT COMMITTEE REPORT We are pleased to present our report for the financial year ended 31 March Audit Committee Structure Limpopo has an Audit Committee which is two tiered consisting of 4 Cluster Audit Committees. The first tier is dealing with specific departments, whilst the second is a shared Central Audit Committee. Audit Committee Responsibility The Audit Committee reports that it has complied with its responsibilities arising from Section 38 (1) (a) (ii) of the Public Finance Management Act and Treasury Regulation The Audit Committee also 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, except that we have not reviewed changes in accounting policies and practices.

79 The Effectiveness of Internal Control In line with the PFMA requirements and the Audit Committee mandate to provide oversight on the Department, the efficiency and effectiveness of the systems of Internal Control and Risk Management was considered. The system of internal control was not entirely effective for the year under review. Deficiencies were detected and reported through internal audits performed on the system of internal control. Management continued to address control weaknesses reported by the Internal Auditors and External Auditors during the previous financial year audit. The Audit Committee is satisfied that the Internal Audit function is operating effectively, and that it has taken into consideration the risks pertinent to the Department in its audits. Internal Audit has made significant progress with audits conducted in terms of its strategic three-year rolling internal audit plan. The following audits were completed during the year under review: 1.Management Performance Assessment Tool (MPAT 2.Transfer Payments and Grants (NT) (GAAL) 3.ln Year Monitoring 4. Division of Revenue Act (DORA) Audits 5. Revenue Management (Traffic Stations) 6.Asset Management (Districts)?.Subsistence and Travel Allowance (S&T) B. Interim Financial Statements 9.Performance Management Development System (PMDS)- Head Office 10. Performance Management Development System (PM DS )- (Districts) 11.Reliability and Integrity of Performance Information (PI) 12.Bus Subsidies 13.0perating Licensing 14.Law Enforncement - (Districts) 15.Road Safety Education and Awareness- (Districts) 16.Follow up audit_ 1 17.Follow up audit_2 18.Follow up audit_3 19.Follow up audit_ 4

80 The following was the areas of concern: The six senior staff members continued to be on suspended from duty for another entire financial year. This has an adverse impact on staff morale and performance of those acting in the positions due to lack of certainty such that they could not focus in taking full leadership responsibilities in positions they are acting in. In-Year Management and Monthly/Quarterly Report The department has been reporting monthly and quarterly to the Provincial Treasury as is required by the PFMA. During the year under review, the Audit Committee was not always satisfied with the content and quality of the quarterly reports prepared and issued by the Department in terms of the PFMA. Furthermore, the Audit Committee was not satisfied with the progress made towards the achievement of planned targets, especially when compared to the budget spent. Targets not achieved related to none procurement of major assets. Evaluation of Financial Statements We have reviewed the annual financial statements prepared by the Department. The Audit Committee concurs and accept the unqualified opinion of Auditor General on Financial Statements of the Department, and that they be read with the Annual Report of the Department. Auditor General's Report The Audit Committee has met with the representatives of the Auditor General South Africa to ensure that there were no unresolved issues. Although the AGSA expressed an unqualified audit op1mon regarding the Annual Financial Statements of the Department, there were areas where the system of internal control was found to be ineffective. Management has committed to develop and implement corrective actions to address these shortcomings. The Audit Committee will monitor this closely. ' '-. Mmathebe Annah-Faith Moja Chairperson of the Audit Committee Department of Transport, Safety, Security and Liason 31 ST July, 2016

81 PART D: HUMAN RESOURCE MANAGEMENT

82 1. INTRODUCTION The information contained in this part of the annual report has been prescribed by the Minister for the Public Service and Administration for all departments in the public service. 2. OVERVIEW OF HUMAN RESOURCES Following the reconfiguration of the Limpopo Provincial Administration, the Department had to restart with the structure review process for the new Department of transport. Consultations were conducted with all employees, Executive Management and Organised labour. The final draft organisational structure is in place, pending principle approval by the Executive Authority and further consultations with Office of The Premier and the Minister of Public Service and Administration. As an endeavour to increase capacity, 339 posts were filled during the year under review including 3 SMS posts. The Department managed to implement the following training interventions: 20 skills programmes and 3 learnership programmes Other training interventions implemented in partnership with Transport, Education and Training Authority (TET A) is as listed below: 77 employees enrolled for artisan development programme Bursaries awarded in scarce skills areas 07 External 29 Internal The Department has approved Human Resource Plan, Employment Equity Plan and Staff Retention Policy which are being implemented. A Work Place Skills Plan was in use, and implemented through a Human Resource Development Plan which was reported on quarterly basis using a Quarterly Monitoring Tool. PMDS policy was implemented for all employees in respect of submission and processing of Performance Instruments, six months Reviews (1st term) and (2nd

83 term) Annual Assessments. Chief Directors and Directors constituted moderations committees to enhance effective implementation of the PMDS. Employee wellness programmes implemented to sustain healthy and productive workforce. The Department implemented employee assistance programmes; whereby serious cases where referred for external expertise Wellness days we conducted on quarterly basis in partnership with health and wellness organisations to rich out employees on employee, health and wellness related programmes. 3. HUMAN RESOURCE OVERSIGHT STATISTICS 3.1. Personnel related expenditure The following tables summarises the final audited personnel related expenditure by programme and by salary bands. In particular, it provides an indication of the following: amount spent on personnel amount spent on salaries, overtime, homeowner's allowances and medical aid Table Personnel expenditure by programme for the period 1 April 2015 and 31 March 2016 Programme Total Personnel Training Professional Personnel Average personnel Expenditure Expenditure Expenditure and Special Expenditure cost per employee () () () Services as a percent () Expenditure of total () expenditure Administration 489, , Transport Operations 758,483 42, Transport Regulations 492, , TOTAL ,

84 Table Personnel costs by salary band for the period 1 April 2015 and 31 March 2016 Salary band Personnel percent of total No. of Average personnel Expenditure () personnel cost employees cost per employee () Lower skilled (Levels 1-2) 1, ,200 Skilled (level 3-5) 52, ,948 Highly skilled production (levels 6-8) 553, ,088 Highly skilled supervision (levels 9-12) 144, ,372 Senior and Top management (levels 13-16) 33, ,007,485 Contract (Levels 1-2) ,222 Contract (Levels 3-5) Contract (Levels 6-8) Contract (Levels 9-12) Contract (Levels 13-16) 1, , Periodical Remuneration Abnormal Appointment Total 786, Table Salaries. Overtime. Home Owners Allowance and Medical Aid by programme for the period 1 April 2015 and 31 March 2016 Programme Salaries Overtime Home Owners Medical Aid Allowance Amount Salaries Amount Overtime Amount HOA as a Amount Medical aid as ( as a () as a () percent of () a percent of percent of percent of personnel personnel personnel personnel costs costs costs costs Administration 211, ,7 8, , , Transport Operations 27, , , , Transport Regulations 256, , , , TOTAL 495, , , ,

85 Critical occupation Number of posts on approved establishment Number of Vacancy Number of employees posts filled Rate additional to the establishment Administrative related, Permanent 706 Artisan project and related superintendents, Permanent 49 Auxiliarv and related workers, Permanent 2 Bus and heavy vehicle drivers, Permanent 4 Cleaners in offices workshops hospitals etc., Permanent 146 Client inform clerks(switch b receipt inform clerks), Permanent 5 Communication and information related, Permanent 10 Finance and economics related, Permanent 211 Financial and related professionals, Permanent 11 Financial clerks and credit controllers, Permanent 67 Human resources & organisational development & relate prof, Permanent 14 Human resources clerks, Permanent 25 Human resources related, Permanent 10 Information technology related, Permanent 12 Leqal related, Permanent 5 Library mail and related clerks, Permanent 4 Lii:iht vehicle drivers, Permanent 5 Logistical suooort personnel, Permanent 4 Messengers porters and deliverers, Permanent 19 Motor vehicle drivers, Permanent 3 Other administrat & related clerks and ori:ianisers, Permanent 94 Regulatory inspectors, Permanent 1009 Risk management and security services, Permanent 14 Secretaries & other keyboard operating clerks, Permanent 48 Senior manai:iers, Permanent 36 Trade labourers, Permanent 26 Trade related, Permanent 17 TOTAL

86 Table Salaries. Overtime. Home Owners Allowance and Medical Aid by salary band for the period 1 April 2015 and 31 March 2016 Salary Bands Salaries Overtime Home Owners Medical Aid Allowance Amount Salaries Amount Overtime Amount HOA as a Amount Medical aid as ( as a () as a () percent of () a percent of percent of percent of personnel personnel personnel personnel costs costs costs costs Skilled (level 1-2) Skilled 35, , , (level 3-5) Highly skilled production 338, , , , (levels 6-8) Highly skilled supervision 102, , , , (levels 9-12 Senior management (level 25, , ) Contract ( 1-2) Contract (13-16) 1, TOTAL 504, , , , Employment and Vacancies Table Employment and vacancies by programme as on 31 March 2016 Programme Number of posts on Number of Vacancy Rate Number of employees approved posts filled additional to the establishment establishment Administration Transport Regulation (Traffic) percent 0 Transport Operations percent 0 Total percent 0 Table Employment and vacancies by salary band as on 31 March 2016 Salary band Number of posts on Number of posts Vacancy Rate Number of employees approved filled additional to the establishment establishment Lower skilled ( 1-2) percent 0 Skilled(3-5) percent 0 Highly skilled production (6-8) percent 0 Highly skilled supervision (9-12) percent 0 Senior management (13-16) percent 0 Total percent 0 Table Employment and vacancies by critical occupations as on 31 March 2016

87 3.3. Filling of SMS Posts Table SMS post information as on 31 March 2015 SMS Level Total number of Total number percent of Total percent of funded SMS ofsms posts SMS posts number of SMS posts posts filled filled SMS posts vacant vacant Head of Department Salary Level Salary Level Salary Level Salary Level Total Table SMS post information as on 31 September 2015 SMS Level Total number of Total number percent of Total percent of funded SMS ofsms SMS posts number of SMS posts posts members filled SMS posts vacant vacant Head of Department Salary Level Salary Level Salary Level Salary Level Total Table Advertising and filling of SMS posts for the period 1 April 2015 and 31 March 2016 SMS Level Number of Number of vacancies Number of vacancies per vacancies per level per level not filled in 6 level advertised in 6 filled in 6 months of months of but filled in months of becoming becoming vacant 12 months vacant Head of Department Salary Level Salary Level Salary Level Salary Level Total 1 1 0

88 Table Reasons for not having complied with the filling of funded vacant SMS - Advertised within 6 months and filled within 12 months after becoming vacant for the period 1 April 2015 and 31 March 2016 Reasons for vacancies not filled within six months There was restructuring in the Department and the proposed organisational structure had not yet been finalised as consultations were busy taking place with employees and organised labour. In view hereof, it would not have made sense to advertise posts in the current organisational structure which were not necessarily guaranteed in the proposed organisational structure. However, some of the SMS posts could not be filled due to financial constraints. Reasons for vacancies not filled within twelve months The delays in the finalisation of the restructuring process made it very difficult to fill certain SMS posts as this might have resulted in redundant personnel once the new organisational structure is finalised and implemented. Table Disciplinary steps taken for not complying with the prescribed timeframes for filling SMS posts within 12 months for the period 1 April 2015 and 31 March 2016 Reasons for vacancies not filled within six months Not applicable in the light of the reasons given above Reasons for vacancies not filled within twelve months Not applicable in the light of the reasons given above 3.4. Job Evaluation Table Job Evaluation by Salary band for the period 1 April 2015 and 31 March 2016 Salary band Number of Number of percent of Posts Upgraded Posts downgraded posts on Jobs posts Number percent Number percent of posts approved Evaluated evaluated of posts evaluated establishment by salary evaluated bands Lower Skilled (Levels 1-2) Skilled (Levels 3-5)

89 Table Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2015 and 31 March 2016 Occupation Number of Job evaluation level Remuneration Reason for deviation employees level Legal related, Permanent Percentage of total employed Total Number of Employees whose remuneration exceeded the grade determined by job 0 evaluation in 2015/16 Percentage of total employed 0 Table Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2015 and 31 March 2016 Beneficiary African Asian Coloured White Total Female Male Total Employees with a disability Employment Changes This section provides information on changes in employment over the financial year. Turnover rates provide an indication of trends in the employment profile of the department. The following tables provide a summary of turnover rates by salary band and critical occupations. Table Annual turnover rates by salary band for the period 1 April 2015 and 31 March 2016 Salary Band Number of employees at Appointments Terminations and Turnover beginning of period and transfers into transfers out of rate April 2014 the department the Department Lower skilled ( Levels 1-2) Skilled (Levels3-5) percent Highly skilled production (Levels 6-8) percent Highly skilled supervision (Levels 9-12) percent

90 Salary band Number of Number of posts on Jobs approved Evaluated establishment Highly skilled production (Levels 6-8) Highly skilled supervision (Levels 9-12) Senior Management 29 0 Service Band A Senior Management 6 0 Service Band B Senior Management 1 0 Service Band C Senior Management 0 0 Service Band D Contract 6 0 (Levels 1-2) Contract 0 0 (Levels 3-5) Contract 0 0 (Levels 6-8) Contract 0 0 (Levels 9-12) Contract (Band A) 0 0 Contract (Band B) 1 0 Contract (Band C) 0 0 Contract (Band D) 0 Total percent of posts evaluated by salary bands Posts Upgraded Posts downgraded Number percent Number percent of posts of posts evaluated evaluated Table Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2015 and 31 March 2016 Beneficiary African Asian Coloured White Total Female Male Total Employees with a disability

91 Salary Band Number of employees at beginning of period April 2014 Senior Management Service Bands A 26 Senior Management Service Bands B 5 Senior Management Service Bands C 1 Senior Management Service Bands D 1 Appointments Terminations and Turnover and transfers into transfers out of rate the department the Department Contracts 17 Total percent percent Table Annual turnover rates by critical occupation for the period 1 April 2015 and 31 March 2016 Critical Occupation Number of Appointments Terminations Turnover rate employees at and transfers and transfers beginning of period into the out of the April 2014 department Department Administrative related, Permanent (L6-8) Architects town and traffic planners, Permanent Artisan project and related superintendents, Permanent Auxiliary and related workers, Permanent Building and other property caretakers, Permanent Bus and heavy vehicle drivers, Permanent Cashiers tellers and related clerks, Permanent Civil engineering technicians, Permanent Cleaners in offices workshops hospitals etc., Permanent (L3-5) Client inform clerks(switch b receipt inform clerks), Permanent Financial and related professionals, Permanent (L9-12) Financial clerks and credit controllers, Permanent Human resources & organizational development & relate prof, Permanent (L9-12) percent Human resources related, Permanent Information technoloov related, Permanent Leoal related, Permanent Library mail and related clerks, Permanent 4

92 Critical Occupation Number of employees at beginning of period April 2014 Liaht vehicle drivers, Permanent 6 Material-recording and transport clerks, Permanent 20 Mechanical engineering technicians, Permanent 1 Messengers porters and deliverers, Permanent 16 Printing and related machine operators, Permanent 1 Rei:iulatorv inspectors, Permanent 914 Road superintendents, Permanent 30 Road workers, Permanent (11-2) 34 Secretaries & other keyboard operating clerks, Permanent 52 Senior manai:iers, Permanent (L 13-16) 221 Total 2070 Appointments Terminations Turnover rate and transfers and transfers into the out of the department Department The table below identifies the major reasons why staff left the department. Table Reasons why staff left the Department for the period 1 April 2015 and 31 March 2016 Termination Type Number percent of Total Resignations Death 13 9 Resignation Expiry of contract 12 9 Dismissal - operational changes 0 0 Dismissal - misconduct 3 2 Dismissal - inefficiency 0 0 Discharged due to ill-health 1 1 Retirement Transfer to other Public Service Departments Other 0 0 Total

93 Table Promotions by critical occupation for the period 1 April 2015 and 31 March 2016 Occupation Employees Promotions Salary level Progressions Notch Employees 1 April 2015 to another promotions to another progression 1 April 2015 Salary Level as a notch within as a percent percent of a salary level of employees employees by by occupation occupation Administrative related, Permanent Architects town and traffic planners, Permanent Artisan project and related superintendents, Permanent (Tradesman Aid) Auxiliary and related workers, Permanent Building and other property caretakers, Permanent Bus and heavy vehicle drivers, Permanent Cashiers tellers and related clerks, Permanent Civil enaineerina technicians, Permanent Cleaners in offices workshops hospitals etc., Permanent Client inform clerks(switch b receipt inform clerks), Permanent Financial and related professionals, Permanent Financial clerks and credit controllers, Permanent Human resources & organizational development & relate prof, Permanent Human resources related, Permanent Information technology related, Permanent LeQal related, Permanent Librarv mail and related clerks, Permanent Liaht vehicle drivers, Permanent Material-recording and transport clerks, Permanent Mechanical engineering technicians, Permanent Messengers porters and deliverers, Permanent Printing and related machine operators, Permanent Reaulatorv inspectors, Permanent Road superintendents, Permanent Road workers, Permanent Secretaries & other keyboard operating clerks, Permanent Other occupations,permanent Total

94 Table Promotions by salary band for the period 1 April 2015 and 31 March 2016 Salary Band Employee Promotions Salary bands Progressions to Notch 1 April to another promotions as another notch progression as a 2015 salary level a percent of within a salary percent of employees by level employees by salary level salary bands Lower skilled (Levels 1-2) Lower skilled (Levels 1-2) Skilled (Levels 3-5) Highly skilled production (Levels 6-8) Highly skilled supervision (Levels 9-12) Senior Management (Level 13-16) Contract (levels 1-2) permanent Contract (levels 13-16) permanent Total Employment Equity Table Total number of employees {including employees with disabilities) in each of the following occupational categories as on 31 March 2016 Occupational category Male Female Total African Coloured Indian White African Coloured Indian White Legislators, senior officials and managers Professionals Technicians and associate professionals Clerks Service and sales workers Skilled agriculture and fishery workers Craft and related trades workers Plant and machine operators and assemblers Elementary occupations Total Employees with disabilities

95 Table Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2016 Occupational Band Male Female African Coloured Indian White African Coloured Indian White Total Top Management (L 15-L 16) Senior Management (L 13-L 14) Professionally qualified and experienced specialists and mid-management Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents Semi-skilled and discretionary decision making Unskilled and defined decision making Total Table Recruitment for the period 1 April 2015 and 31 March 2016 Occupational Band Male Female African Coloured Indian White African Coloured Indian White Total Top Management Senior Management Professionally qualified and experienced specialists and mid-management Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents 39 Semi-skilled and discretionary decision making Unskilled and defined decision makinq Total Employees with disabilities

96 Table Promotions for the period 1 April 2015 and 31 March 2016 Occupational Band Male Female African Coloured Indian White African Coloured Indian White Total Top Management Senior Management Professionally qualified and experienced specialists and mid-management Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents Semi-skilled and discretionary decision making Unskilled and defined decision making Total Employees with disabilities 0 Table Terminations for the period 1 April 2015 and 31 March 2016 Occupational Band Male Female African Coloured Indian White African Coloured Indian White Total Top Management Senior Management Professionally qualified and experienced specialists and mid-management Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents Semi-skilled and discretionary decision making Unskilled and defined decision making Total Employees with Disabilities

97 Table Disciplinary action for the period 1 April 2015 and 31 March 2016 Disciplinary action Male Female African Coloured Indian White African Coloured Indian White Total Table Skills development for the period 1 April 2015 and 31 March 2016 Occupational category Male Female African Coloured Indian White Coloured Indian White Total Legislators, senior officials and manaoers Professionals Technicians and associate professionals Clerks Service and sales workers Skilled agriculture and fishery workers Craft and related trades workers Plant and machine operators and assemblers Elementary occupations Total Employees with disabilities Signing of Performance Agreements by SMS Members Table Signing of Performance Agreements by SMS members as on 31 March 2014 SMS Level Total number of Total number of Total number of Signed funded SMS SMS members signed performance performance posts agreements members agreements as percent of total number of SMS members Head of Department Salary Level 16 Salary Level 15 1 Salary Level 14 7 Salary Level Total

98 Table Reasons for not concluded Performance Agreements for all SMS members as on 31 March 2016 Reasons I None Table Disciplinary steps taken against SMS members for not having concluded Performance Agreements as on 31 March 2016 Reasons I None 3.8. Performance rewards Table Performance Rewards by race. gender and disability for the period 1 April 2015 to 31 March 2016 Race and Gender Beneficiary Profile Cost Number of Number of percent of total Cost () Average cost per beneficiaries employees within group employee African, Male ,519 10,683 Asian, Male Coloured Male ,769 White Male ,257 African Female Asian Female ,937 Coloured Female White Female ,932 Disability ,790 TOTAL ,641 10,616

99 Table Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2015 to 31 March 2016 Salary Band Beneficiary Profile Cost Number of Number of percent of Total Cost Average Total cost as a beneficiaries employees total within () cost per percent of the total salary employee personnel bands expenditure Lower Skilled (Levels 1-2) , Skilled (level 3-5) , Highly skilled production ,911 9, (level 6-8) Highly skilled supervision (level 9-12) ,131 18, Contract (Levels 1-5) Total , Table Performance Rewards by critical occupation for the period 1 April 2015 to 31 March 2016 Critical Occupation Beneficiary Profile Cost Number of Number of percent of Total Cost Average cost per beneficiaries employees total within () employee occupation Administrative related ,889 13,957 Artisan in the building ,000 Artisan project and related ,154 Auxiliary and related work Bus and heavy vehicle Cleaners in offices workshop ,814 Client information clerk ,500 Communication and information Finance and economic related ,483 Finance and related professional ,500

100 Critical Occupation Beneficiary Profile Number of Number of beneficiaries employees Human Resource & Organisational Development 9 13 Human Resource Clerks Human Resource related 4 8 Information Technology - - Legal Related 1 1 Library mail and related 2 4 Light vehicle drivers 2 3 Logistics support personnel 4 4 Other administrative related & org Regulatory inspectors/traffic IT - - RWA 2 5 Secretaries & other Senior Managers 3 17 Total Cost percent of Total Cost Average cost per total within {) employee occupation , , , , , , , , ,892 9, , , , Table Performance related rewards (cash bonus). by salary band for Senior Management Service for the period 1 April 2015 to 31 March 2016 Salary Band Beneficiary Profile Cost Number of Number of percent of total Total Cost Average Total cost as a percent of the beneficiaries employees within salary () cost per total personnel expenditure bands employee Band A Band B Band C Band D Total

101 3.9. Foreign Workers Table Foreign workers by salary band for the period 1 April 2015 to 31 March 2016 Salary Band 01 April March 2016 Change Number percent of Number percent of Number percent total total Change Lower skilled Highly skilled production (Lev. 6-8) Highly skilled supervision (Lev. 9-12) Contract (level 9-12) Contract (level 13-16) Total Table Foreign workers bymaior occupation for the period 1 April 2015 to 31 March 2016 Major Occupation 01 April March 2016 Change Number percent of Number percent of Number percent Change total total Leave utilisation Table Sick leave for the period 1 January 2015 to 31 December 2015 Salary Band Total percent Number of percent of Average Estimated days Days with Employees total days per Cost () Medical using sick employees employee certification leave using sick leave Lower Skills (Level 1-2) Skilled (levels 3-5) Highly skilled production (levels 6-8) Highly skilled supervision (levels 9-12) Top and Senior management (levels 13-16) Total 10958,

102 Table Disability leave {temporary and permanent) 1 January 2015 to 31 December 2015 Salary Band Total percent Number of percent of Average Estimated days Days with Employees total days per Cost () Medical using sick employees employee certification leave using sick leave Lower Skills (Level 1-2) Skilled (levels 3-5) Highly skilled production (levels 6-8) Highly skilled supervision (levels 9-12) Top and Senior management (levels 13-16) Total Table Annual Leave 1 January 2015 to 31 December 2015 Salary Band Total days taken Number of Employees Average per employee using annual leave Lower skilled (Levels 1-2) Skilled Levels 3-5) Highly skilled production (Levels 6-8) Highly skilled supervision(levels 9-12) Senior management (Levels 13-16) 811 Contracts (Levels 13-16) Contracts (Level 1-2) Total Table Capped leave 1 January2015 to 31 December 2015 Salary Band Total days of Number of Average number Average capped leave capped leave Employees using of days taken per per employee as at taken capped leave employee 31 March Lower skilled (Levels 1-2) Skilled Levels 3-5) HiQhly skilled production (Levels 6-8) HiQhlv skilled suoervision(levels 9-12) Senior manaqement (Levels 13-16) Total

103 Table Leave payouts 1 April 2015 to 31 March 2016 Reason Total Amount Number of Average per employee () Employees () Leave pay-out for 2012/13 due to non-utilisation of leave for the previous cycle Capped leave pay-outs on termination of service for /13 Current leave pay-out on termination of service for 2013/ Total HIV/AIDS & Health Promotion Programmes Table Steps taken to reduce the risk of occupational exposure Units/categories of employees identified to be at high risk of Key steps taken to reduce the risk contracting HIV & related diseases (if any) First aiders in the Department Wellness day are held regularly to raise HIV/AIDS awareness. An approved universal precautions guideline on HIV and Aids is available in the Department and has been popularized. Table Details of Health Promotion and HIV/AIDS Programmes {tick the applicable boxes and provide the required information) Question Yes No Details, if yes 1. Has the Department designated a member of the SMS X Mr MM Malatji to implement the provisions contai ned in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position 2. Does the Department have a dedicated unit or has it X Head Office designated specific staff members to promote the health and well -being of your employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose Director: Employee Wellness Programme 1 X Deputy Director: EAP 1 X Deputy Director: OHS 1 X Assistant Director: EAP 1 X COID Practitione

104 Question Yes No Details, if yes The allocated annual budget ( Head Office) Compensation of Employees-3, 516, Goods and Services- 2,161, DISTRICTS Vhembe 1 x Deputy Manager : Special Programme 2 x Wellness Co-ordinators CAPRICORN 1 x Deputy Manager : Special Programme 2 x Wellness Co-ordinator Mopani 1 x Deputy Manager : Special Programme 1 X EAP Specialist 1 x Wellness Co-ordinator WATERBERG 1 x Deputy Manager : Special Programme 1 x Wellness Co-ordinator SEKHUKHUNE DISTRICT 1 x Deputy Manager : Special Programme 2 x Wellness Co-ordinators 3. Has the Department introduced an Employee Assistance or Health Promotion Programme for your employees? If so, indicate the key elements/services of this Programme 4. Has the Department established (a) committee(s) a s X contemplated in Part VI E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent X Counselling, proactive advisory sessions on finance, stress, trauma, substance management, retirement sessions and workplace violence, bullying and sexual harassment. The Department also has a sports programme whereby employees are engaging in soccer, netball, choir, aerobics etc. on Wednesdays. Regular health and wellness in particular to HIV and other chronic diseases through medical screenings are provided. Health and safety advisory sessions are also implemented The Department does have OHS and a Sports and Recreational Committees at Head Office, Districts and Institutions.

105 Question Yes 5. Has the Department reviewed its employment policies X and practices to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment p olicies/practices so reviewed No Details, if yes The following policies are in place and review annually: HIV & AIDS Occupational Health and Safety Wellness Management Health and Productivity 6. Has the Department introduced measures to protect X HIV-positive employees o r those perceived to be HIV - positive from discrimination? If so, list the key elements of these measures. 7. Does the Department encourage its employees to X undergo Voluntary Counselling and Testing? If so, list the results that you have achieved. 8. Has the Department developed measures/indicators to monitor & evaluate the impact of its health promotion programme? If so, list these measures/indicators. X Policy is in place and it promotes rights of people living positively with HIV and AIDS. It further promotes non - discrimination and stigmatisation of infected employees. HCT Internally 443 employees were tested as follows: Males- 130 Females -135 Unknown -178 HCT External 101 employees were tested as follows: Males- 40 Females - 61 The Depart ment does have a reporting tool that was developed by DPSA. This specific tool was utilised to assist the Department in Developing the operational plans for Labour Relations Table Collective agreements for the period 1 April 2015 to 31 March 2016 I Subject Matter None Date I

106 Table Misconduct and disciplinary hearings finalised for the period 1 April 2015 to 31 March 2016 Outcomes of disciplinary hearings Number percent of total Correctional counsellinq 0 0 percent Verbal warning 0 0 percent Written warninq percent Final written warning 9 25 percent Suspended without pay percent Fine 0 0 percent Demotion 0 0 percent Dismissal percent Not guilty 0 0 percent Case withdrawn percent Resigned percent Termination by operation of law percent Acauitted percent Total percent Table Types of misconduct addressed at disciplinary hearings for the period 1 April 2015 to 31 March 2016 Type of misconduct (based on annexure A) Number percent of total Under influence of alcohol percent Insubordination 0 0 percent Absenteeism percent Dereliction of duties 0 0 Gross Dishonesty percent Negligence percent Assault percent Intimidation 0 0 percent Unethical conduct percent Remunerative work outside Public Service percent Loss of state property percent Disclosure of information 0 0 percent overpayment percent Unbecoming behaviour percent Obtaining/issuing of fraudulent driving licence percent Financial irregularity percent Misuse/damage of state property percent Solicited bribe percent Abscondment 0 0 percent Corruption percent Wrongful appointment percent Total percent

107 Table Grievances logged for the period 1 April 2015 to 31 March 2016 Number of grievances resolved Number 35 percent of Total 89.7 percent Number of grievances not resolved percent Total number of grievances lodged percent Table Disputes logged for the period 1 April 2015 to 31 March 2016 Number percent of Total Number of disputes upheld percent Number of disputes dismissed 01 5 percent Total number of disputes lodged percent Table Strike actions for the period 1 April 2015 to 31 March 2016 Total number of persons working days lost 0,00 Total costs working days lost 0,0 Amount () recovered as a result of no work no pay 0,00 Table Precautionary suspensions for the period 1 April 2015 to 31 March 2016 Number of people suspended 09 Number of people who's suspension exceeded 30 days 09 Average number of days suspended 420 Cost () of suspension R3,305,

108 3.13. Skills development Table Training needs identified for the period 1 April 2015 to 31 March 2016 Occupational Category Gender Number of Training needs identified at start of the reporting period employees as Learner-ship Skills Programmes & Other forms Total at 1 April 2015 other short courses of training Legislators, senior officials Female and managers Male Professionals Female Male Technicians and associate Female - professionals Male - 53 Clerks Female Male Service and sales workers Female Male Skilled agriculture and fishery Female - workers Male - Craft and related trades Female 36 - workers Male 71 Plant and machine operators Female and assemblers Male Elementarv occuoations Female Sub Total Female 1072 Male Male Total Table Training provided for the period for the period 1 April 2015 to 31 March 2016 Occupational Category Gender Number of Training provided within the reporting period employees as Learner-ship Skills Programmes & Other forms Total at 1 April 2015 other short courses of training Legislators, senior officials Female and managers Male Professionals Female Male Technicians and associate Female - professionals Male - 53 r.1erks Female

109 Occupational Category Gender Number of employees as at 1 April 2015 Male 377 Service and sales workers Female 418 Male 624 Skilled agriculture and fishery Female workers Male Craft and related trades Female 36 workers Male 71 Plant and machine operators and assemblers Female Male Elementary occupations Female 53 Male 24 Non-Employees(18.2 Male Learners) Female Sub Total Female 1072 Male 1165 Total 2234 Training provided within the reporting period Leamer-ship Skills Programmes & Other forms Total other short courses of training Injury on duty The following tables provide basic information on injury on duty. Table lniury on duty for the period 1 April 2015 to 31 March 2016 Nature of injury on duty Number percent of total Required basic medical attention only None 0 Temporary Total Disablement 31 Permanent Disablement None 0 Fatal Total

110 3.15. Utilisation of Consultants Table Report on consultant appointments using appropriated funds for the period 1 April 2015 to 31 March 2016 Project Title Total Number of Duration in days Contract value in consultants that Rand worked on project Development of Musina Local months R Municipality integrated transport plan Development of Greater Tzaneen months R Municipality integrated transport plan Baseline Occupational Safety, Health months R and Environmental Risk Assessment Table Analysis of consultant appointments using appropriated funds. in terms of Historically Disadvantaged Individuals (HDls) for the period 1 April 2015 to 31 March 2016 Project Title Percentage ownership by Percentage management Number of Consultants from HDI HDI groups by HDI groups groups that work on the project N/A N/A N/A N/A Table Report on consultant appointments using Donor funds for the period 1 April 2015 to 31 March 2016 Project Title Total Number of consultants that Duration Donor and Contract value in worked on project Work days Rand N/A N/A N/A N/A Total number of projects Total individual consultants Total duration Total contract value in Rand Work days N/A N/A N/A N/A Table Analysis of consultant appointments using Donor funds. in terms of Historically Disadvantaged Individuals (HDls) for the period 1 April 2015 to 31 March 2016 Project Title Percentage ownership by Percentage management Number of Consultants from HDI HDI groups by HDI groups groups that work on the project N/A N/A N/A N/A

111 3.16. Severance Packages Table Granting of employee initiated severance packages for the period 1 April 2015 to 31 March 2016 Salary Band Number of Number of Number of Number of packages application applications applications approved by received referred to the supported by MPSA department MPSA Lower skilled (Levels 1-2) Skilled (Levels 3-5) Highly skilled production (Levels 6-8) Highly skilled supervision (Levels 9-12) Senior Management (Level 13-16) Total

112 PART E: FINANCIAL INEORMATION

113 Report of the auditor-general to the Limpopo provincial legislature on vote no 8: Department of Transport Report on the financial statements Introduction 1. I have audited the financial statements of the Department of Transport set out on pages 119 to 191, which comprise the appropriation statement, the statement of financial position as at 31 March 2016, the statement of financial performance, statement of changes in net assets, and cash flow statement and the statement of comparison of budget information with actual information for the year then ended, as well as the notes, comprising a summary of significant accounting policies and other explanatory information. Accounting officer's responsibility for the financial statements 2. The accounting officer is responsible for the preparation and fair presentation of these financial statements in accordance with the Modified Cash Standard prescribed by the National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and the Division of Revenue Act of South Africa, 2015 (Act No. 1 of 2015) (DoRA), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor-general's responsibility 3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with 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.

114 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 and fair presentation 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 Department of Transport as at 31 March 2016 and its financial performance and cash flows for the year then ended, in accordance with the Modified Cash Standard and the requirements of the PFMA and DoRA. Emphasis of matters 7. I draw attention to the matters below. My opinion is not modified in respect of these matters.

115 Significant uncertainties 8. With reference to note 16 to the financial statements, the department is the defendant in various legal claims involving individuals and companies. The department is opposing the claims amounting to R OOO as it believes it has reasonable grounds to defend each claim. The ultimate outcome of the matters cannot presently be determined. As a result, no provision for any liability that may result has been made in the financial statements. Restatement of corresponding figures 9. As disclosed in note 21 to the financial statements, the corresponding figures for 31 March 2015 have been restated as a result of an error discovered during 2016 in the financial statements of the Department of Transport at, and for the year ended, 31 March Report on other legal and regulatory requirements 10. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PM) and the general notice issued in terms thereof, I have a responsibility to report findings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report, compliance with legislation and internal control. The objective of my tests was to identify reportable findings as described under each subheading but not to gather evidence to express assurance on these matters. Accordingly, I do not express an opinion or conclusion on these matters. Predetermined objectives 11. I performed procedures to obtain evidence about the usefulness and reliability of the reported performance information for the following selected programmes presented in the annual performance report of the department for the year ended 31 March 2016:

116 Programme 3: Transport Operations on pages 49 to 53 Programme 4: Transport Regulation on pages to 54 to I evaluated the usefulness of the reported performance information to determine whether it was presented in accordance with the National Treasury's annual reporting principles and whether the reported performance was consistent with the planned programmes. I further performed tests to determine whether indicators and targets were well defined, verifiable, specific, measurable, time bound and relevant, as required by the National Treasury's Framework for managing programme performance information (FMPPI). 13. I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete. 14. The material findings in respect of the selected programme are as follows: Programme 3: Transport Operations Usefulness of reported performance information 15. Paragraph of the Treasury Regulation requires the annual performance plan to form the basis for the annual report, therefore requiring consistency of objectives, indicators and targets between planning and reporting documents. A total of 22% of the reported targets were not consistent with those in the approved annual performance plan. This was due to a lack of proper systems and processes for performance management. Reliability of reported performance information 16. I did not identify any material findings on the reliability of the reported performance information for programme 3: Transport Operations

117 Programme 4: Transport Regulation 17. I did not identify any material findings on the usefulness and reliability of the reported performance information for programme 4: Transport Regulation Additional matters Achievement of planned targets 18. Refer to the annual performance report on pages 49 to 53; 54 to 56 for information on the achievement of the planned targets for the year. This information should be considered in the context of the material findings on the usefulness of the reported performance information in paragraphs 16 to 17 of this report. Compliance with legislation 19. I performed procedures to obtain evidence that the entity had complied with applicable legislation regarding financial matters, financial management and other related matters. My material findings on compliance with specific matters in key legislation, as set out in the general notice issued in terms of the PAA, are as follows: Annual financial statements, performance and annual reports 20. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework as required by section 40(1 )(a) and (b) of the PFMA. Material misstatements of disclosure items identified by the auditors in the submitted financial statement were subsequently corrected, resulting in the financial statements receiving an unqualified audit opinion. 21. The strategic plan did not form the basis for the annual report as required by Treasury Regulation and 5.2.1

118 Internal control 22. I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with legislation. The matters reported below is limited to the significant internal control deficiency that resulted in the findings on non-compliance with legislation included in this report. Leadership 23. The accounting officer did not adequately review the financial statements prior to submission for audit with the result that errors were not identified and corrected. Financial and performance management 24. The accounting officer did not prepare accurate and complete financial statements that are supported and evidenced by reliable information. 25. Significant adjustments to the accrued department revenue are is due to the lack of adequate systems to maintain traffic summonses. Other reports 26. I draw attention to the following engagement that could potentially impact on the department's financial, performance and compliance related matters. My opinion is not modified in respect of this engagement that is in progress. Investigations 27. An independent consulting firm is currently performing an investigation at the request of the department, which covers the period to

119 ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 TABLE OF CONTENTS Page no. Appropriation Statement Notes to the Appropriation Statement Statement of Financial Performance Statement of Financial Position Statement of Changes in Net Assets Cash Flow Statement Notes to the Annual Financial Statements (including Accounting policies) Annexure

120 The investigation was initiated based on an allegation of the irregularities, maladministration and alleged corruption and fraud in the arrears of procurement and awarding of tenders, traffic management systems and contract management, drivers licence traffic centres, misstatement and falsifying of subsistence and travel claims. The investigation resulted in the suspension of several officials. The disciplinary process is still on-going with five cases concluded, one on appeal, one in process and two hearings not started as yet. Polokwane 31 July 2016 _-,,-.....,.. _ L '7» AU DI TOR - GE N E RAL SOUT H AF RICA Auditing to build public confidence

121 DEPARTMENT OF TRANSPORT VOTES APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2016 Appropriation per programme 2015/16 Adjusted Shifting Virement Final Actual Appropriati of Funds Appropriati Expenditur on on e Voted funds and Direct charges Programme 1. ADMINISTRATION 489,449 (80) (3,310) 486, , TRANSPORT OPERATIONS 781,423 - (22,940) 758, , TRANSPORT REGULATIONS 465,831-26, , ,836 Programme sub total 1,736,703 (80) - 1,736,623 1,725,812 Statutory Appropriation 1, ,902 1,902 Member's remuneration 1, ,902 1, TOTAL 1,738, ,738,525 1,727,714 Reconciliation with Statement of Financial Performance Add: Departmental receipts - NRF Receipts - Aid assistance 6,600 Actual amounts per Statement of Financial Performance (Total Revenue) 1,745,125 Add: Aid assistance Prior year unauthorized expenditure approved without funding - Actual amounts per Statement of Financial Performance Expenditure 1,734,931 7, /15 Variance Expendit Final Actual ure as % Appropriati Expenditur of final on e appropri ation % 2, % 588, ,295 8, % 736, , % 466, ,503 10, % 1,791,036 1,702, % 1,822 1, % - 1,822-1,806-10, % 1,792,858 1,704, ,830 1,848,688 17,787-1,722,275

122 DEPARTMENT OF TRANSPORT VOTES APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2016 Appropriation per economic classification 2015/ /15 Adjusted Shifting Virement Final Actual Final Actual Appropriati of Funds Appropria Expenditure Variance Expendit Appropriati Expenditur on tion ure as % on e of final appropri ation % Current payments Compensation of employees Salaries and wages Social contributions Goods and services Administrative fees Advertising Minor assets Audit costs: External Bursaries: Employees Catering: Departmental activities Communication (G&S) Computer services Consultants: Business and advisory services Legal services Contractors Agency and support / outsourced services Entertainment Fleet services (including government motor transport) Housing Inventory: Clothing material and accessories Inventory: Farming supplies Inventory: Fuel, oil and gas Inventory: Materials and supplies Inventory: Other supplies Consumable supplies Consumable: Stationery, printing and office supplies Operating leases Property payments Transport provided: Departmental activity Travel and subsistence Trainina and develooment 975, , ,148 {9,985) 101.0% 1,023, , , , ,643 (17,301) 102.3% 721, , , , ,558 (8,041) 101.2% 629, ,229 97, , ,085 (9,260) 109.5% 92,071 90, , , ,333 7, % 301, , % , ,370 2, % 6,503 5, % 2,053 1,213 4, ,034 4, % 5,163 5, % ,884 - (1) 1,883 1, % 1,651 1,082 10, ,007 9, % 13,046 11,969 10, ,010 9, % 13,691 10,842 3,141 - (862) 2,279 2, % 2,660 2,585 2, ,632 2, % 3,495 3,428 3, ,621 3, % 7,515 5,206 3, ,199 1,490 1, % 11,427 9, % , ,782 23, % 36,940 36, , ,921-8,881-1, % - 14,391-12, % % 2,306 1, % , ,680 2, % 4,359 3,150 8,432-1,000 9,432 8, % 15,802 13,141 30, ,966 30, % 33,253 33,131 42,967 - (500) 42,467 41, % 80,683 73, % ,310 31,030 30, % 33,025 27,854 3, ,460 3, % 5,288 4,475

123 DEPARTMENT OF TRANSPORT VOTES APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2016 Appropriation per economic classification 2015/ /15 Adjusted Shifting Virement Final Actual Expenditur Final Actual Appropriati of Funds Appropria Expenditur Variance eas % of Appropriati Expenditur on tion e final on e appropriati on % Operating payments 8,403 - (1,500) 6,903 6, % 4,072 1,877 Venues and facilities 2, ,307 2, % 2,046 1,808 Rental and hiring % Transfers and subsidies 721, , ,188 13, % 707, ,291 Provinces and municipalities 1, ,414 1, % Provinces % Provincial Revenue Funds Provincial agencies and funds % Municipalities ,022 1, % - - Municipal bank accounts Municipal agencies and funds ,022 1, % - - Departmental agencies and accounts 46, ,890 46, % 43,347 43,160 Social security funds Departmental agencies (nonbusiness entities) 46, ,890 46, % 43,140 43,137 Public corporations and private enterprises 665,502 - (7,205) 658, ,755 6, % 654, ,283 Public corporations 665,502 - (7,205) 658, ,755 6, % 654, ,283 Subsidies on products and production (pc) 367,204 - (7,205) 359, ,457 6, % 363, ,436 Other transfers to public corporations 298, , , % 291, ,847 Households 7,879-7,005 14,884 8,154 6, % 8,270 8,128 Social benefits 4,749-7,005 11,754 5,055 6, % 5,187 5,051 Other transfers to households 3, ,130 3, % 3,083 3,077 Payments for capital assets 41, ,877 34,550 7, % 61,973 40,435 Buildings and other fixed sructures 9,882 - (1,190) 8,692 4,853 3, % 11,763 11,719 Buildings 9,882 - (1,190) 8,692 4,853 3, % 11,763 11,719 Other fixed structures Machinery and equipment 31,995-1,190 33,185 29,697 3, % 50,080 28,592 Transport equipment 16,148-1,322 17,470 15,801 1, % 14,644 14,025 Other machinery and equipment 15,847 - (132) 15,715 13,896 1, % 35,436 14,567 Software and other intangible assets Payment for financial assets ,738, ,738,525 1,727,714 10, % 1,792,858 1,704,488

124 DEPARTMENT OF TRANSPORT VOTES APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2016 Programme 1: ADMINISTRATION 2015/ /15 Adjusted Appropria tion Shifting Virement Final Actual Variance of Funds Appropriation Expenditure Expenditur Final Actual eas%of Appropria Expenditur final tion e appropriati on % Sub programme 1. OFFICE OF THE MEC MANAGEMENT OF THE 2. DEPARTMENT 3. CORPORATE SUPPORT DEPARTMENTAL 4. STRATEGY - 11, ,334 5, ,377 10, (80) (3,310) 468, ,446 2, ,738 6,445 (707) % 20,034 12, % 562, , % 5,658 5, ,449 (80) (3,310) 486, ,643 2, % 588, ,295 Economic classification Current payments Compensation of employees Salaries and wages Social contributions Goods and services Administrative fees Advertising Minor assets Audit costs: External Bursaries: Employees Catering: Departmental activities Communication (G&S) Computer services Consultants: Business and advisory services Legal services Contractors Entertainment Fleet services (including government motor transport) Inventory: Clothing material and accessories Inventory: Farming supplies Inventory: Fuel, oil and gas Inventory: Materials and supplies Consumable supplies Consumable: Stationery, printing and office supplies Operating leases Property payments Transport provided: Departmental activity Travel and subsistence Training and development Operating payments Venues and facilities 466, , ,574 42, ,383-1, , ,188 10, , , ,429 5,508 30,966 42, ,521 3,338 7,059 1,324 (80) (2,000) 463, ,791 2,134 (80) - 304, , (80) - 262, , ,048 42, (2,000) 159, ,706 1, ,098 1, ,034 4, ,188 9, ,010 9, ,632 2, ,782 23, ,429 1, ,508 5, ,966 30, (500) 41,505 41, ,521 15, ,338 3, (1,500) 5,559 5, ,324 1, % 558, , % 322, , % 280, , % 41,613 40, % 236, , % 5,584 4, % 1, % 5,163 5, % % % 11,868 11, % 13,691 10, % 1,160 1, % 3,495 3, % % % 36,940 36, % % % 2,173 1, % 2,708 1, % 11,070 9, % 33,253 33, % 79,694 72, % % 16,906 13, % 5,165 4, % 2,908 1, % 1,435 1,309

125 DEPARTMENT OF TRANSPORT VOTES APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2016 Proaramme 1: ADMINISTRATION 2015/ /15 Adjusted Shifting Virement Final Actual Final Actual Appropriati of Funds Appropria Expenditure Variance Expenditu Appropriation Expendit on tion re as%of ure final appropria tion % Economic classification Transfers and subsidies Provinces and municipalities Provinces Provincial Revenue Funds Provincial agencies and funds Municipalities Municipal bank accounts Municipal agencies and funds Departmental agencies and accounts Social security funds Departmental agencies (nonbusiness entities) Households Social benefits Other transfers to households Payments for capital assets Machinery and equipment Transport equipment Other machinery and equipment Software and other intangible assets Pavment for financial assets 8,449-1,000 9,449 9, % 10,093 10, ,414 1, % % % ,022 1, % ,022 1, % - - 1, ,590 1, % 3,140 3, , ,590 1, % 3,140 3,137 5, ,445 6, % 6,219 6,665 2, ,315 3, % 3,156 3,607 3, ,130 3, % 3,063 3,058 14,995 - (2,310) 12,685 12, % 19,075 11,211 14,995 - (2,310) 12,685 12, % 18,945 11,087 1, ,190 1,322 (132) 111.1% ,805 - (2,310) 11,495 11, % 18,945 11, ,449 (80) (3,310} 486, ,643 2, % 588, ,295

126 DEPARTMENT OF TRANSPORT VOTES APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2016 Proaramme 2: TRANSPORT OPERATIONS Adjusted Appropriatio n Sub programme PROGRAMME SUPPORT 1, OPERATIONS TRANSPORT SAFETY AND 44, COMPLIANCE TRANSPORT SYSTEMS 6,635 INFRASTRUCTURE 52,878 OPERATIONS PUBLIC TRANSPORT 675,932 SERVICES ,423 Economic classification Current payments 62,834 Compensation of employees 53,029 Salaries and wages 48,789 Social contributions 4,240 Goods and services 9,805 Advertising 1,272 Minor assets - Catering: Departmental 655 activities Communication (G&S) 200 Consultants: Business and 2,190 advisory services Inventory: Clothing material 785 I and accessories Transport provided: - Departmental activity Travel and subsistence 3,557 Operating payments 315 Venues and facilities 831 Transfers and subsidies 711,011 Departmental agencies and 45,300 accounts Social security funds - Departmental agencies (non- 45,300 business entities) Public corporations and private 665,502 enterprises Public corporations 665,502 Subsidies on products and 367,204 production (pc) Other transfers to public 298,298 Corporations Households 209 Social benefits 209 Payments for capital assets 7,578 Buildings and other fixed 7,578 structures Buildings 7,578 Machinery and equipment - Other machinery and - eauioment 781, /16 Shifting of Virement Final Actual Funds Appropri Expendit Variance ation ure - (130) 1,364 1, (5,821) 38,663 38, (1,744) 4,891 4, (6,190) 46,688 46, (9,055) 666, ,749 8,128 - (22,940) 758, ,333 8,150 - (10,650) 52,184 51, (10,650) 42,379 42, (10,650) 38,139 37, ,240 4,900 (660) - - 9,805 9, ,272 1, (1) (862) 1,328 1, ,420 4,645 (225) (6,100) 704, ,091 7, ,300 45, ,300 45, (7,205) 658, ,755 6,542 - (7,205) 658, ,755 6,542 - (7,205) 359, ,457 6, , , ,105 1, ,278-1,105 1, ,278 - (6,190) 1,388 1, (6,190) 1,388 1, (6,190) 1,388 1, (22,940) 758, ,333 8, /15 Expenditure Final Actual as% of final Appropria Expenditure appropriation tion % 99.9% 1,134 1, % 27,686 27, % 3,696 3, % 40,900 40, % 662, , % 736, , % 39,691 39, % 26,636 26, % 23,847 23, % 2,789 3, % 13,055 12, % % % % 1,500 1, % 5,317 5, % 3,698 3, % % % 695, , % 40,200 40, % 40,000 40, % 654, , % 654, , % 363, , % 291, , % 2.7% % 1, % % % 736, ,884

127 DEPARTMENT OF TRANSPORT VOTES APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2016 Proaramme 3: TRANSPORT REGULATIONS Sub programme 1. PROGRAMME SUPPORT REGULATION 2. OPERATOR LICENCE AND PERMITS 3. LAW ENFORCEMENT TRANSPORT ADMINISTRATION AND 4. LICENCING 2015/16 Adjusted Shifting Final Actual Appropria of Funds Vireme Appropriatio Expenditu Variance tion nt n re 1, ,877 1, ,399-2,673 28,072 27, ,798-23, , ,488 (4,256) 21, ,900 18,784 3, ,831-26, , , /15 Expendit Final Actual ure as % Appropri Expendit of final ation ure appropri ation % 71.3% 2,032 1, % 29,380 28, % 400, , % 34,517 14, % 466, ,503 Economic classification Current payments Compensation of employees Salaries and wages Social contributions Goods and services Administrative fees Advertising Minor assets Catering: Departmental activities Communication (G&S) Contractors Agency and support / outsourced services Inventory: Clothing material and accessories Inventory: Fuel, oil and gas Inventory: Materials and supplies Inventory: Other supplies Consumable supplies Consumable: Stationery, printing and office supplies Property payments Travel and subsistence Training and development Operating payments Venues and facilities Rental and hiring Transfers and subsidies Departmental agencies and accounts Social security funds Households Social benefits Other transfers to households Payments for capital assets Buildings and other fixed structures Buildings Machinery and equipment Transport equipment Other machinery and equipment Payment for financial assets 444,502-12, , ,599 (12,447) 409,869-10, , ,588 (18,069) 358,589-10, , ,679 (9,440) 51, ,280 59,909 (8,629) 34,633-2,000 36,633 30,839 5, , ,614 3, , ,199 1,490 1,709 9, ,136 8,098 1, , , ,924. 1,000 3,924 3, , ,089 10, , , ,025-5,100 7,125 1,707 5, ,025-5,100 7,125 1,707 5,418 2,025. 5,100 7,125 1,707 5, ,304-8,500 27,804 20,702 7,102 2,304-5,000 7,304 3,467 3,837 2,304-5,000 7,304 3,467 3,837 17,000. 3,500 20,500 17,235 3,265 14,958-1,322 16,280 14,479 1,801 2,042-2,178 4,220 2,756 1, , , , , % 422, , % 370, , % 323, , % 47,405 46, % 52,386 40, % % % 1, % 7,135 5, % 11,427 9, % - 9,054-6, % % % 1,651 1, % 4,732 3, % % 12,421 10, % 1, % % % 2,058 1, % 2,051 1, % 2,031 1, % 41,698 28, % 10,863 10, % 10,863 10, % 30,835 17, % 14,644 14, %. 16,191. 3, % 466, ,503

128 DEPARTMENT OF TRANSPORT VOTES NOTES TO THE APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 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 and Annexure 1 (A-H) to the Annual Financial Statements. 2 Detail of specifically and exclusively appropriated amounts voted (after Virement): Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements. 3 Detail on payments for financial assets Detail of these transactions per programme can be viewed in the note to Payments for financial assets to the Annual Financial Statements. 4 Explanations of material variances from Amounts Voted (after virement): 4.1 Per programme: Programme name : Admnistration Final Appropriation 487,961 Actual Expenditur e Variance 485,545 2,416 Variance as a % of Final Approp. % 0.50 IExplanation of variance : Programme name : Transport Operation 758, ,333 8, Explanation of variance: Implemented percentage increase on bus subsides was at 2% whereas the Department projected it at 4%. Programme name : Transport Regulation 492, , IExplanaUon of variance (In the case of surpluses on programmes, a detailed explanation must be given as to whether it is as a result of a saving or underspending.)

129 DEPARTMENT OF TRANSPORT VOTES NOTES TO THE APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH Per economic classification: Final Appropriation Actual Expenditure Variance Variance as a% of Final Approp. % Current expenditure Compensation of employees Goods and services Transfers and subsidies 769, , , ,333 (17,301) 7, Provinces and municipalities Departmental agencies and accounts Public corporations and private enterprises Households Payments for capital assets 1,414 1,389 46,890 46, , ,755 14,884 8, ,542 6, Buildings and other fixed structures Machinery and equipment Payments for financial assets 8,692 4,853 33,185 29,697 3,839 3, Explanation of variance: The appointment of 216 Traffic Officers whose positions were advertised at lower notches 3years ago and impact thereof, and also the delay in appointing the service provider for reinforcement of Thohoyandou lntermodal Facility. Variance as Final a% Appropriati Actual of Final 4.3 Per conditional grant on Expenditure Variance Aoorop. % Public Transport Grant 298, ,

130 DEPARTMENT OF TRANSPORT VOTES STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2016 Note 2015/16 REVENUE Annual appropriation 1 1,736,623 Statutory appropriation i 1,902 Departmental revenue Aid assistance 6, /15 1,791,036 1,822 55,830 TOTAL REVENUE 1,745,125 1,848,688 EXPENDITURE Current expenditure Compensation of employees 2 786,643 Goods and services Q 198,333 Aid assistance 1,782 Total current expenditure 986,758 Transfers and subsidies Transfers and subsidies I 708,188 Total transfers and subsidies 708,188 Expenditure for capital assets Tangible assets Intangible assets 39,985 Total expenditure for capital assets 39,985 Payments for financial assets TOTAL EXPENDITURE 1,734, , ,017 3, , , ,291 54, ,588 1,722,275 SURPLUS/(DEFICIT) FOR THE YEAR 10,194 Reconciliation of Net Surplus/(Deficit) for the year Voted Funds 10,811 Annual appropriation 10,811 Conditional grants Departmental revenue and NRF Receipts 12 Aid assistance (617} SURPLUS/(DEFICIT) FOR THE YEAR 10, ,413 88,370 88, , ,413

131 DEPARTMENT OF TRANSPORT VOTES STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2016 ASSETS 2015/ /15 Note Current Assets 72, ,089 Unauthorized expenditure Cash and cash equivalents 71, ,283 Receivables ,806 Non-Current Assets 7,741 7,360 Receivables 10 7,741 7,360 Other financial assets TOTAL ASSETS 79, ,449 LIABILITIES Current Liabilities 77, ,486 Voted funds to be surrendered to the Revenue Fund Departmental revenue and NRF Receipts 11 10,812 88,441 to be surrendered to the Revenue Fund 12 27,218 12,415 Bank overdraft Payables 13 1,604 5,587 Aid assistance repayable Aid assistance unutilized 37,426 38,043 TOTAL LIABILITIES 77, ,486 NET ASSETS 2,929 2,963 Represented by: Recoverable revenue 2,929 2,963 TOTAL 2,929 2,963

132 DEPARTMENT OF TRANSPORT VOTES CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH /16 Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts 2,161,725 Annual appropriated funds received 1.1 1,736,623 Statutory appropriated funds received 2 1,902 Departmental revenue received 3 416,600 Aid assistance received 4 6,600 Net (increase)/ decrease in working capital (3,417) Surrendered to Revenue Fund (493,268) Surrendered to RDP Fund/Donor Current payments (986,758) Payments for financial assets Transfers and subsidies paid (708,188) Net cash flow available from operating activities 14 (29,906) CASH FLOWS FROM INVESTING ACTIVITIES Payments for capital assets 8 (39,985) Proceeds from sale of capital assets 3.3 3,031 (Increase)/ decrease in loans (Increase)/ decrease in investments (Increase)/ decrease in other financial assets Net cash flows from investing activities (36,954) 2014/15 2,243,765 1,791,036 1, ,077 55,830 1,109 (697,370) (964,396) (703,291) (120,183) (54,588) 2,711 (51,877) CASH FLOWS FROM FINANCING ACTIVITIES Distribution/dividend received Increase/ (decrease) in net assets (34) Increase/ (decrease) in non-current payables Net cash flows from financing activities (34) Net increase/ (decrease) in cash and cash equivalents (66,894) Cash and cash equivalents at beginning of period 138,283 Cash and cash equivalents at end of period 9 71, (171,958) 310, ,283

133 DEPARTMENT OF TRANSPORT VOTES STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 31 MARCH 2016 NET ASSETS 2015/ /15 Note Recoverable revenue Opening balance 2,963 2,861 Transfers (34) 102 Irrecoverable amounts written off Debts revised Debts recovered (included in departmental receipts) Debts raised Closing balance 2,929 2,963 TOTAL 2,929 2,963

134 DEPARTMENT OF TRANSPORT VOTE 08 ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2016 The Financial Statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. Management has concluded that the financial statements present fairly the department's primary and secondary information. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation. Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the Financial Statements and to comply with the statutory requirements of the Public Finance Management Act, Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act. 1.Basis of Preparation The Financial Statements have been prepared in accordance with the Modified Cash Standard. 2.Going Concern The Financial Statements have been prepared on a going concern basis.

135 DEPARTMENT OF TRANSPORT VOTE 08 ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH Presentation Currency Amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the Department. 4. Rounding Unless otherwise stated all financial figures have been rounded to the nearest one thousand rand (). 5.Prior period comparative information 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. 6.Current year comparison with budget A comparison between the approved, final budget and the actual amounts for each programme and economic classification is included in the appropriation statement.

136 DEPARTMENT OF TRANSPORT VOTE 08 ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH Revenue 7.1 Appropriation Funds Appropriated funds comprise of Departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation). Appropriated funds are recognized in the statement of financial performance on the date the appropriation becomes effective. Adjustment made in terms of the adjustments budget process is recognized in the statement of financial performance on the date the adjustment become effective. The net amount of any appropriated funds due to Provincial revenue fund at the reporting date is recognized as a payable/ receivable in the statement of financial position. 7.2 Departmental Revenue Departmental revenue is recognized in the statement of financial performance when received and is subsequently paid into the Provincial Revenue Fund, unless stated otherwise. Any amount owing to the Provincial Revenue Fund at the reporting date is recognized as a payable in the statement of financial position.

137 DEPARTMENT OF TRANSPORT VOTE 08 ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH Accrued Departmental Revenue Accruals in respect of departmental revenue are recorded in the notes to the financial statements when: It is probable that the economic benefits or service potential associated with the transaction will flow to the department; and The amount of revenue can be measured reliably. The accrued revenue is measured at the fair value of the consideration receivables. 8. Expenditure 8.1 Compensation of Employees Salaries and Wages Salaries and wages are expensed in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year) Social contribution Social contributions made by the Department in respect of current employees are recognised in the statement of financial performance on the date of payment.

138 DEPARTMENT OF TRANSPORT VOTE 08 ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2016 Social contributions made by the Department in respect of ex- employees are classified as transfer to households in the statement of financial performance on the date payment. 8.2 Other expenditure Payments made during the year for goods and/or services are recognised as an expense in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). The expense is classified as capital if the goods and/or services were acquired for a capital project or if the total purchase price exceeds the capitalisation threshold (currently RS, OOO). All other expenditures are classified as current. 8.3 Accrued expenditure payable Accrued expenditure payable is recorded in the notes to the financial statements when goods are received or, in the case of services, when they are rendered to the department or in case the transfers and subsidies when they are due and payable. Accrued expenditure payable is measured at cost.

139 DEPARTMENT OF TRANSPORT VOTE 08 ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH Lease Commitments Finance Lease Finance lease payments made during the reporting period are recognised as capital expenditure in the statement of financial performance on the date of payment. The finance lease commitments are recorded in the notes to the financial statements and are not apportioned between capital and interest portions. Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of: Cost, being the fair value of the asset; or The sum of the minimum lease payments made, including any payments made to acquire ownership at the end of the lease term, excluding interest Operating Lease Operating lease payments made during the reporting period are recognised as current expenditure in the statement of financial performance on the date of payment. The operating lease commitments are recorded in the note to the financial statements.

140 DEPARTMENT OF TRANSPORT VOTE 08 ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH Aid Assistance 9.1 Aid assistance received Aid assistance received in cash is recognized in the statement of financial performance when received. In-kind aid assistance is recorded in the notes to the financial statements on the date of receipt and is measured at fair value. Aid assistance not spent for the intended purpose and any unutilized funds from aid assistance that are required to be refunded to the donor are recognized as a payable in the statement of financial position. 9.2 Aid assistance paid Aid assistance paid is recognized in the statement of financial performance on the date of payment. Aid assistance payments made prior to the receipt of funds are recognized as receivables in the statement of financial position. 10. Cash and Cash Equivalents Cash and cash equivalents are stated at a cost in the statement of financial position. Bank overdrafts are shown separately on the face of the statement of financial position. For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts

141 DEPARTMENT OF TRANSPORT VOTE 08 ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH Prepayments and Advances Prepayment and advances are recognized in the statement of financial position when the Department disburses the cash. Prepayment and advances are initially and subsequently measured at a cost. 12. Loans and receivables Loans and receivables are recognized in the statement of financial position at cost plus accrued interest, where interest is charged, less amounts already settled or written - off. Write-offs are made according to the department's write - off policy. 13.lnvestments Investments are recognized in the statement of financial position at cost. 14.lmpairment of financial assets Where there is an indication of impairment of financial asset, an estimation of the reduction in the recorded carrying value, to reflect the best estimate of the amount of the future economic benefits to be received from asset, is recorded in the note to the financial statements.

142 DEPARTMENT OF TRANSPORT VOTE 08 ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH Payables Loans and payables are recognised in the statement of financial position at cost. 16.Capital Assets 16.1 Movable Assets Movable capital assets are initially recorded in the note to the financial statements at cost. Movable capital assets acquired through a non- exchange transaction is measured at fair value as at the date of acquisition. Where the cost of movable capital assets cannot be determined reliably, the movable capital assets are measured at fair value and where fair value cannot be determine ;the movable assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) are recorded at R1. Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.

143 DEPARTMENT OF TRANSPORT VOTE 08 ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2016 Subsequent expenditure that is of capital nature is added to the cost of the asset at the end of the capital project unless the movable asset is recorded by another department/entity in which case the completed project are transferred to the department Movable Assets Immovable capital assets are initially recorded in the note to the financial statements at cost. Immovable capital assets acquired through a non - exchange transaction is measured at fair value as at the date of acquisition. Where the cost of immovable capital assets cannot be determine accurately, the immovable capital assets are measured at R1 unless the fair value of the asset has been reliably estimated, in which case the fair value is used. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) are recorded at R1. Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment. Subsequent expenditure that is of capital nature is added to the cost of the asset at the end of the capital project unless the immovable asset is recorded by another department/entity in which case the completed project are transferred to the department.

144 DEPARTMENT OF TRANSPORT VOTE 08 ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH Intangible assets Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition. Internally generated intangible assets are recorded in the notes to the financial statements when the department commences the development phase of the project. Where the cost of intangible assets cannot be determined accurately, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1. 17 Provision and contingents 17.1 Provisions Provision are recorded in the notes to the financial statements when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation and a reliable estimate of the obligation can be made. The provision is measured as the best estimate of the funds required to settle the present obligation at the reporting date.

145 DEPARTMENT OF TRANSPORT VOTE 08 ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH Contingent liabilities Contingent liabilities are recorded in the notes to the financial statements when there is a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not within the control of the Department or when there is a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably Contingent assets Contingent assets are recorded in the note to the financial statements when possible asset arises from past events, and whose existence will be confirmed by the occurrence or non - occurrence of one or more uncertain future events not within the control of the department Commitments Commitments are recorded at cost in the note to the statement of financial statements when there is a contractual arrangement or an approval by management in a manner that raises a valid expectation that the Department will discharge its responsibilities thereby incurring future expenditure that will result in the outflow of cash.

146 DEPARTMENT OF TRANSPORT VOTE 08 ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH Unauthorized expenditure Unauthorized expenditure is recognized in the statement of financial position until such time as the expenditure is either approved by parliament or the Provincial legislature with funding and related funds are received ;or approved by parliament or the Provincial legislature without funding and is written off against the appropriation in the statement of financial performance ;or transferred to receivables for recovery. Unauthorized expenditure is measured at the amount of the confirmed unauthorized expenditure. 19. Fruitless and wasteful expenditure Fruitless and wasteful expenditure is recorded in the note to the financial statements when confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure confirmed. Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or transferred to receivables for recovery. Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be recoverable and de- recognized when settled or subsequently written - off as irrecoverable.

147 DEPARTMENT OF TRANSPORT VOTE 08 ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH lrregular Expenditure Irregular expenditure is recorded in the note to the financial statements when confirmed. The amount recorded is equal to the value of the irregular expenditure incurred unless it is impracticable to determine, in which case reasons therefore are provided in the note. Irregular expenditure is removed from the note when it is either condoned by the relevant authority, transferred to receivables for recovery or not condoned and is not recoverable. Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de- recognized when settled or subsequently written -off as irrecoverable. 21.Changes in accounting policies, accounting estimates and errors Correction of errors is applied retrospectively in the period in which the error has occurred in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the error. 22.Events after the reporting date The Department overpaid the employees with an amount of R20, and it was discovered after the closure of the books. The debts were created during 2016/17 financial year. In terms of debt system, debts that are created after closure of books does not affect the debt account for the month that is already closed.

148 DEPARTMENT OF TRANSPORT VOTE 08 ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH Agent-Principal arrangements The department has signed a service level agreement with Municipalities and South African Post Office for collection of revenue at a commission of 11.4% and 20%. 25. Employee Benefits Short-term employee benefits that give rise to a present legal or constructive obligation are disclosed in the notes to the financial statements. These amounts are not recognized in the statement of financial performance or the statement of financial position. 26.Key Management Personnel Compensation paid to key management personnel including their family members where relevant, is included in the notes to the financial statements. 27. Recoverable revenue Amounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off.

149 DEPARTMENT OF TRANSPORT VOTE 08 ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH Related party transactions A related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party. Related party transactions are recorded in the notes to the financial statements when the transaction is not at arm's length. 29. Inventories (Effective from 1 April 2017) At the date of acquisition, inventories are recorded at cost price in the notes to the financial statements Where inventories are acquired as part of a non-exchange transaction, the cost of inventory is its fair value at the date of acquisition. Inventories are subsequently measured at the lower of cost and net realisable value or the lower of cost and replacement value.

150 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Annual Appropriation Final Appropriation 2015/16 Actual Funds Received Funds not 2014/15 requested/ Final Appropriation not received Appropriation Received Programmes ADMINISTRATION 486, , , ,358 TRANSPORT OPERATIONS 758, , , ,032 TRANSPORT REGULATIONS 492, , , ,646 Total 1,736,623 1,736,623 1,791,036 1,791, / /15 Note 1.2 Conditional grants** Total grants received 298, ,852 Provincial grants included in Total Grants received 298, , / /15 Note 2 Statutory Appropriation Member's remuneration 1,902 1,822 1,902 1,822 Actual Statutory Appropriation received 1,902 1,822

151 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH / /15 Note 3 Departmental Revenue Tax revenue 332,037 Sales of goods and services other than capital assets li 25,067 Fines, penalties and forfeits ,547 Interest, dividends and rent on land 3.3 Sales of capital assets 3.3 3,031 Transactions in financial assets and liabilities Total revenue collected 419,631 Less: Own revenue included in appropriation , ,185 23,132 46,217 2,711 32, , ,788 Departmental revenue collected Sales of goods and services other than 3.1 capital assets J Sales of goods and services produced by the department 25,034 Sales by market establishment , Administrative fees 22,192 Other sales 2,563 21,232 1,378 Sales of scrap, waste and other used current goods Total 25,067 23, Fines, penalties and forfeits J Fines 36,715 Penalties 21,832 25,593 20,624 Forfeits Total 58, Sales of capital assets Tangible assets J 3,031 Buildings and other fixed structures Machinery and equipment 27 3,031 I I 2,711 46,217 2,711 Total 3,031 2,711

152 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Note 2015/ /15 Transactions in financial assets and liabilities Receivables ,543 Other Receipts including Recoverable Revenue 2 Total ,543 Aid Assistance Opening Balance 38,043 Prior period error As restated 38,043 Transferred from statement of financial performance (617) 38,043 Paid during the year Closing Balance 37,426 38, Analysis of balance by source! Aid assistance from other sources 37,426 38,043 Closing Balance 37,426 38, Analysis of balance! Aid assistance receivable Aid assistance unutilized 37,426 38,043 Closing balance 37,426 38,043 5 The Department had R38m cash in the bank emanating from unspent funds of 2014/15 financial year. During the year under review the Department received a budget of R6.6m for Aid assistance and spent R7.2m the balance as at 31st March 2016 is R37.4m. Compensation of Employees 2015/ /15 Note 5.1 Salaries and wages Basic salary Performance award Service Based Compensative/circumstantial Other non-pensionable allowances Total 495, ,188 9,017 7, ,259 93,533 69,614 80,921 71, , ,229

153 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Social Contributions Note 2015/16 Employer contributions Pension 64,520 Medical 42,408 Bargaining council 157 Total 107, /15 57,465 32, ,516 Total compensation of employees 786, ,745 6 Average number of employees 2,242 Goods and services Administrative fees 202 Advertising 2,234 Minor assets M 629 Bursaries (employees) 17 Catering 1,481 Communication 9,925 Computer services 6.2 9,977 Consultants: Business and advisory services 2,278 Legal services 2,609 Contractors 3,303 Agency and support/ outsourced services 1,490 Entertainment 93 Audit cost - external 6.3 4,033 Fleet services 23,781 Inventory ,065 Consumables ,539 Operating leases 30,966 Property payments ,941 Rental and hiring 197 Transport provided as part of the departmental activities 136 Travel and subsistence ,255 Venues and facilities 2,243 Training and development 3,338 Other operating expenditure 6.8 6,601 Total 198,333 2, ,335 1, ,082 11,968 10,843 2,586 3,428 5,206 9, ,104 36,879 13,897 16,290 33,131 73, ,853 1,808 4,475 1, ,017

154 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 Note 2015/ / Minor assets Tangible assets Buildings and other fixed structures 629 1,214 Machinery and equipment 629 1, Total 629 Computer services SIT A computer services External computer service providers 6,590 3,387 Total 9,977 1,214 7,312 3,531 10, Audit cost - external Regularity audits Total 4,033 4,033 5,104 5, Inventory Clothing material and accessories Fuel, oil and gas Materials and supplies Other supplies Total Other Supplies 8, ,065 Ammunition and security supplies 301 Total ,177 1, ,

155 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Expenditure for capital assets Tangible assets Note 2015/16 39,985 Buildings and other fixed structures 29 4,853 Machinery and equipment 27 35,132 Intangible assets Software Total 39, Analysis of funds utilised to acquire capital assets /16 Voted Funds Aid assistance Tangible assets 34,550 5,435 Buildings and other fixed structures 4,853 Machinery and equipment 29,697 5,435 Total 34,550 5, Analysis of funds utilized to acquire capital assets /15 Aid Voted Funds assistance Tangible assets 40,311 14,153 Buildings and other fixed structures 11,719 Machinery and equipment 28,592 14,153 Intangible assets 124 Software 124 Total 40,435 14, /16 Finance lease expenditure included in Expenditure for capital 8.3 assets Tangible assets Machinery and equipment 7,220 Total 7, /15 54,464 11,719 42, ,588 TOTAL 39,985 4,853 35,132 39,985 TOTAL 54,464 11,719 42, , /15 7,204 7,204

156 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 Note 2015/ Consumables Q Consumable supplies 2,027 Uniform and clothing 272 Household supplies 1,450 Building material and supplies 190 Communication accessories IT consumables 108 Other consumables 7 Stationery, printing and office supplies 8,512 Total 10, /15 3, , ,140 16, Property payments Q Municipal services 6,115 Property management fees 31,795 Property maintenance and repairs 4,031 Other Total 41,941 10,403 58,739 1,969 2,458 73, Travel and subsistence Q Local 30,249 Foreign 6 Total 30,255 27, , Other operating expenditure Q Professional bodies, membership and subscription fees 4,810 Resettlement costs 642 Other 1,149 Total 6,601 Transfers and Subsidies Provinces and municipalities 48, 49 1,389 Departmental agencies and accounts ANNEXURE1B 46,890 Public corporations and private enterprises ANNEXURE 1C 651,754 Households ANNEXURE1D 8,154 Total 708, , , ,284 8, ,292

157 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH / /15 9 Note Cash and Cash Equivalents Consolidated Paymaster General Account Investments (Domestic) Investments (Foreign) (1,320) 72,709 (37,303) 175,586 Total 71, , / /15 Current Non- Current Noncurrent Total current Note Receivables Staff debt ,518 2, ,447 Other debtors ,223 5,714 1,366 5,913 Total 859 7,741 8,600 1,806 7,360 Total 1,887 7,279 9, Note Staff debt / /15 Debt: Leave without pay 56 Sal: Tax Debt 157 Debt : Sal Overpayment 2,483 Debt : Overpayment on Perfom bonus 84 Debt : Breach of Contract 58 Debt: T&S 1 Debt : Km Allowance 38 Debt : Government property 9 Total 2, , , Other debtors 10 Other Debtors 1,643 Debt : Breach of Contract Dishoured Cheque 2 Agency Service Control 134 Transport Education Training Authority 357 Debt : Supplier 3,578 Total 5,714 2, ,215 3,340 7,279 In the previous years other debts were created as other due to items that were not in the system, the financials are reflecting the type of debts in line with the debts files hence decrease/increase in other debts type.

158 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Note 2015/16 Voted Funds to be Surrendered to the Revenue Fund Opening balance 88,441 Prior period error As restated 88,441 Transfer from statement of financial performance (as restated) 10,811 Add: Unauthorised expenditure for current year Voted funds not requested/not received Transferred to retained revenue to defray excess expenditure (Parliament/Legislatures ONLY) Paid during the year Closing balance {88,440} 10, /15 283, ,651 88,370 {283,580} 88, Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund Opening balance 12,415 Prior period error As restated Transfer from Statement of Financial Performance (as restated) Own revenue included in appropriation Transfer from aid assistance Transfer to voted funds to defray expenditure (Parliament/Legislatures ONLY) Paid during the year Closing balance 12, ,631 {404,828} 27,218 28,417 28, ,788 {413,790} 12, Payables - current Other payables Total 1,604 5,587 1,604 5, Other payables enatis Transaction fees Sal: Income Tax Sal : Bargain Council Sal : Pension Fund Agency Service Control Total ,604 1, ,487 5,587

159 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 Note 2015/ /15 14 Net cash flow available from operating activities Net surplus/(deficit) as per Statement of Financial Performance Add back non cash/cash movements not deemed operating activities (lncrease)/decrease in receivables - current (lncrease)/decrease in prepayments and advances (lncrease)/decrease in other current assets lncrease/(decrease) in payables - current Proceeds from sale of capital assets Proceeds from sale of investments (Increase )/decrease in other financial assets Expenditure on capital assets Surrenders to Revenue Fund Surrenders to RDP Fund/Donor Voted funds not requested/not received Own revenue included in appropriation Other non-cash items Net cash flow generated by operating activities 10,194 (40,100) 566 (3,983) (3,031) 39,985 (493,268) 419,631 (29,906) 126,413 (246,596) (1,280) 15 2,374 (2,711) 54,588 (697,370) 397,788 (120,183) 15 Reconciliation of cash and cash equivalents for cash flow purposes Consolidated Paymaster General account Cash with commercial banks (Local) Cash with commercial banks (Foreign) (1,320) 72,709 (37,303) 175,586 Total 71, , Contingent liabilities and contingent assets Note 2015/ / Contingent liabilities Liable to Motor vehicle guarantees Housing loan guarantees Annex2A Other guarantees Claims against the department Annex3B Intergovernmental payables (unconfirmed Annex 5 balances) , , Total 82,014 97,155

160 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Contingent assets 2015/16 Nature of contingent asset Note The Department will claim cost for the structural deficiency from the responsible consultant who designed and supervised the construction of Thohoyandou lntermodal Facility. The Department is currently investigating possible fraud taking place at various traffic stations and weighbridges emanating from redeeming of postal orders for traffic fines. 1,618 Total 1,618 Commitments Current expenditure Approved and contracted 12,979 Approved but not yet contracted Capital Expenditure 12,979 Approved and contracted 23,683 Approved but not yet contracted 23,683 Total Commitments 36, /15 23,768 23,768 25,790 25,790 49, Accruals and payables not recognized 2015/ Accruals Listed by economic classification 30 days 30+ days Total Goods and services 9, ,791 Transfers and subsidies Capital assets Other 8, ,836 Total 18, , /15 Total 6, ,547 11, /16 Listed by programme level Note Administration 9,915 Transport Operation 228 Transport Regulation 8,484 Total 18, /15 10, ,496 11,669

161 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Lease commitments 20 Operating leases expenditure Buildings Machiner Specialized and other yand military fixed equipmen 2015/16 assets Land structures t Total Not later than 1 year 41,384 41,384 Later than 1 year and not later than 5 years 90,264 90,264 Later than five years Total lease commitments 131, ,648 Buildings Machiner Specialized and other yand military fixed equipmen 2014/15 assets Land structures t Total Not later than 1 year 32,417 32,417 Later than 1 year and not later than 5 years 113, ,596 Later than five years Total lease commitments 146, , Finance leases expenditure ** Buildings Specialised and other Machinery military fixed and 2015/16 assets Land structures equipment Total Not later than 1 year 3, Later than 1 year and not later than 5 years 8,010 8,010 Later than five years Total lease commitments 11,043 11,043 Buildings Specialised and other Machinery military fixed and 2014/15 assets Land structures equipment Total Not later than 1 year 4,961 4,961 Later than 1 year and not later than 5 years 7,778 7,778 Later than five years Total lease commitments 12,739 12,739

162 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Payables not recognized 2015/ /15 Listed by economic classification 30 days 30+ days Total Total Goods and services 15,264 14,201 29,465 Other Total 15,264 14,634 29, / /15 Listed by programme level Note Admnistration 29,741 Transport Operation 65 Transport Regulation 92 Total 29, Employee benefits 2015/ /15 Leave entitlement 33,841 30,290 Service bonus (Thirteenth cheque) 21,956 19,184 Performance awards Capped leave commitments Other 11, ,897 3,543 10, ,634 1,149 Total 191, ,051 At this stage the Department is not able to reliably measure the long term portion of the long service awards the provision made is for 2016/17 and is disclosed as "other". The performance awards have been calculated at 1.5% of the total budget for compensation of employees. Included in the leave entitlement are leave days that were taken as at 31 March 2016 but not captured in the system amounting to R134 thousand. Included in the leave days are leave entitlement with credit balance of R389 thousand due to vacation leave of 22 and 30 days that are allocated annually, but accumulate monthly by 1.8 and 2.5 days.

163 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Accrued departmental revenue Note 2015/16 Tax revenue 91,871 Fines, penalties and forfeits 117,142 Total 209, Analysis of accrued departmental revenue Add: Amounts recognized 209,013 Closing balance 209, /15 83, , , , ,908 The Department adjusted the prior year balance for traffic fines with summons which prescribed during Financial year amounting to R56m Impairment of accrued departmental revenue Estimate of impairment of accrued departmental revenue Total 37,368 35,580 37,368 35, Irregular expenditure 2015/ / Reconciliation of irregular expenditure Opening balance Prior period error As restated Add: Irregular expenditure - relating to prior year Add: Irregular expenditure - relating to current year Less: Prior year amounts condoned Less: Current year amounts condoned Less: Amounts not condoned and recoverable 1,154 1, Less: Amounts not condoned and not recoverable Irregular expenditure awaiting condonation 1,222 1,154 Analysis of awaiting condonation per age classification Current year Prior years Total 1,222 1, , Details of irregular expenditure - current year Incident Disciplinary steps taken/criminal proceedings Three quotations not sourced Under investigation Total 2015/

164 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Fruitless and wasteful expenditure 23.1 Reconciliation of fruitless and wasteful expenditure Opening balance Prior period error As restated Fruitless and wasteful expenditure - relating to prior year Fruitless and wasteful expenditure - relating to current year Less: Amounts resolved Less: Amounts transferred to receivables for recovery Closing balance 23.2 Analysis of awaiting resolution per economic classification Current Capital Transfers and subsidies Total 2015/ / (3) (119) Anal sis of Current Year's Fruitless and wasteful ex enditure Disciplinary steps taken/criminal Incident roceedin s Expenditure incurred is as result of interest paid to Eskom. The matter is under investigation. Expenditure incurred is as result of interest paid to Municipalities and Telkom. Total The matter is under investigation. 2015/ Prior period error Nature of prior period error Relating to Note 2014/15 Relating to 2014/15 Total (3)

165 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Related party transactions Limpopo Provincial Treasury a} Internal Audit Services The service for auditing the Department is administered by Limpopo Provincial Treasury and is rendered for free as the staff conducting the audit have been appointed by Provincial Treasury. b} Audit Committee Services There is a Provincial Audit Committee which operates as a support function to all the Departments. Gateway Authority Airport Limited The Department transfer funds to GAAL for handling of Airport operations and maintenance of Airport infrastructure. Public Works, Roads & Infrastructure The Department occupies buildings that belong to the Limpopo Department of Public Works, Roads & Infrastructure. There is no rental fee paid in terms of GIAMA. Department of Safety and Security The Department of Transport shares the same MEC with the Department of Safety and Security. Administrator: Provides support in terms of section 100(1 )(a) of the Constitution of the Republic of South Africa, 1996 National Department of Transport 275 Bicycles from NDoT were donated to schools from needy communities through our Department for "Shova Kalula Project". 2015/16 In kind goods and services provided/received Provincial Internal Audit Limpopo Provincial Treasury: Audit Committee fees Total Note 1, ,186

166 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Key management personnel No. of Individuals 2015/16 Political office bearers (provide detail below) 1 1,902 Officials: Level 15 to ,493 Level 14 (incl CFO if at a lower level) 6 6,435 Family members of key management personnel Total 10, /15 1,806 1,358 6, , Provisions Staff Debts SAPO:South African Post Office Total 26.1 Reconciliation of movement in provisions /16 Provision Provision 1 2 Opening balance Increase in provision Settlement of provision Closing balance 932 (474) 458 Provision Provision Total 4 provisions 932 (474) 458 Reconciliation of movement in provisions /15 Provision Provision 1 2 Opening balance 319 Increase in provision 613 Closing balance 932 Provision 3 Provision Total 4 provisions

167 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH Opening Value Closing balance adjustments Additions Disposals balance MACHINERY AND EQUIPMENT Transport assets Computer equipment Furniture and office equipment Other machinery and equipment 273, ,705 75,056 13,817 53, ,086 60,175 5,764 1,697 80,450 33,496 19,110 1, , , ,770 78,965 14, ,648 TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 273, ,086 33, ,118 Movable Tangible Capital Assets under investigation Included in the above total of the movable tangible capital assets per the asset register are assets that are under investigation: Machinery and equipment Number 1,088 Value 117, The Department continued with the investigation of assets which could not be trace as reported in 2014/15. The Department manage to trace assets amounting to R438 thousand and will continue to investigate the balance in 2016/17. During 2014/15 the Department transferred assets of R311 m to Department of Public Works, Roads and Infrastructure as reported in the Annual report, during the year under review the Department of Public Works indicated that the part of assets transferred to them amounting to R119m will not be accepted until they are verified by both Departments. The Department has recorded those assets as part of assets under investigation, the verification will continue in 2016/17. Additions ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH Cash MACHINERY AND EQUIPMENT 35,132 Transport assets 19,664 Computer equipment 4,725 Furniture and office equipment 851 Other machinery and equipment 9,892 Non-cash 120,174 40,511 1, ,778 (Capital workin-progress current costs and finance lease payments) (7,220) (7,220) Received current, not paid (Paid current year, received prior year Total 148,086 60,175 5,764 1,697 80,450 TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 35, ,174 (7,220) 148,086

168 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Disposals DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016 Non-cash Total Cash received Sold for cash disposal disposals Actual MACHINERY AND EQUIPMENT 13,511 19,985 33,496 3,031 Transport assets 12,816 6,294 19,110 2,968 Computer equipment 260 1,595 1, Furniture and office equipment Other machinery and equipment ,645 11, TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS 13,511 19,985 33,496 3, Movement for 2014/15 MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015 Opening balance Prior period error Addition s Disposals Closing balance MACHINERY AND EQUIPMENT 565,251 (385) 35, , ,528 Transport assets 206,419 (329) 24,527 99, ,705 Computer equipment Furniture and office equipment 77,011 16,105 (31) - 3,020 4, ,835 75,056 13,817 Other machinery and equipment 265,716 (25) 7, ,325 53,950 TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 565,251 (385) 35, , ,528

169 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Intangible Capital Assets MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016 Value Closing Opening balance adjustments Additions Disposals balance SOFTWARE TOTAL INTANGIBLE CAPITAL ASSETS Additions ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED MARCH 2016 Received (Capital work- current, not in-progress paid (Paid current costs current year, Non- and finance received Cash cash lease payments) prior year Total BUILDINGS AND OTHER FIXED STRUCTURES 4,853 (4,853) Non-residential buildings 4,853 (4,853) Other fixed structures TOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS 4,853 (4,853)

170 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Prior period error Note Nature of prior period error Relating to 2014/15 (affecting the opening balance) Duplicate Non qualifying Assets 2014/15 (385) (366) (19) Relating to 2014/15 Total (385) 27.4 Minor assets MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016 Specialis ed Heritag Machinery Biolog military Intangible e and ical assets assets assets equipment assets Total Opening balance 26,047 26,047 Value adjustments 2,531 2,531 Additions Disposals 2,401 2,401 TOTAL MINOR ASSETS 26,806 26,806 Specialis ed Heritag Machinery Biolog military Intangible e and ical assets assets assets equipment assets Total Number of R1 minor assets 1,146 1,146 Number of minor assets at cost 29,931 29,931 TOTAL NUMBER OF MINOR ASSETS 31,077 31,077

171 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Minor Capital Assets under investigation Included in the above total of the minor capital assets per the asset register are assets that are under investigation: Machinery and equipment Number 3,975 Value 4,311 Minor assets MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015 Specialized Machinery military Intangible Heritage and Biological assets assets assets equipment assets Opening balance 35,292 Prior period error Additions 1,214 Disposals 10,459 TOTAL MINOR ASSETS 26,047 Total 35,292 1,214 10,459 26,047 Specialized Machinery military Intangible Heritage and Biological assets assets assets equipment assets Number of R1 minor assets 713 Number of minor assets at cost 21,103 TOTAL NUMBER OF MINOR ASSETS 21,816 Total ,103 21, Prior period error Note Nature of prior period error Relating to 20WW/XX (affecting the opening balance) 2014/15 Relating to 2014/15 Total

172 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Principal-agent arrangements 2015/ Department acting as the principal Fee paid Gateway Authority Limited : GAAL Municipalities 68,359 South African Post Office : SAPO 10,938 Road Traffic Management Corporation Transport Infrastructure Total 79, /15 40,000 66,363 8, , ,765 Municipalities and SAPO for collection of revenue at a commission of 11.4% (SAPO) and Municipalities at 20%. Road Traffic Management Corporation: Interact with the Department with regard to Road Traffic. 31 INVENTORY (Effective 1 April 2017) 2015/ /15 Note Inventory Annexure 6 Opening balance 2,162 35,412 Add/(Less): Adjustments to prior year balances Add: Additions/Purchases - Cash 10,065 13,897 Add: Additions - Non-cash (Less): Disposals (35,817) (Less): Issues (10,041) (11,330) Add/(Less): Adjustments Closing balance 2,186 2,162

173 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH STATEMENT OF CONDITIONAL GRANTS RECEIVED NAME OF GRANT Division of Revenue Act/Prov incial Grants GRANT ALLOCATION Roll DOR Other Over A Adjust s Adjus ments tment s Total Amoun Amount Availa t spent ble receive by d by depart depart ment ment SPENT Under / (overspe nding) %of availabl e funds spent bydept 2014/15 Divisio Amou n of nt Reven spent ue Act by depart ment Public Transport Grant 298, , , ,298 % 100% 291, , , , , , , ,847 Annexure 1A STATEMENT OF CONDITIONAL GRANTS AND OTHER TRANSFERS TO MUNICIPALITIES NAME OF MUNICIPALIT GRANT ALLOCATION TRANSFER Divisi Roll Adjus Total Actua Fund Re- Amount on of Overs tment Avail I s allocation receive Reven s able Trans Withh s by d by ue Act fer eld National Municip Treasury ality or National Departme nt SPENT Amount spent by munici pality %of availa ble funds spent by munici pality 2014/15 Divisio n of Revenu eact Polokwane Municipality Capricorn Municipality Mopane Municipality Sekhukhune Municipality Vhembe Municipality Waterberg Municipality Total %

174 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE 1B STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS DEPARTMENT/AGENCY/ACCOUNT Gateway Authority Limited :GAAL Public Sector SETA TRANSFER ALLOCATION Adjusted appropriation Roll Overs Adjustments 45,300 1,590 Total Available 45,300 1,590 Actual Transfer 45,300 1,590 TRANSFER %of Available funds transferred % 100% 100% 2014/15 Appropriation Act 40,000 3,140 Total ANNEXURE 1C 46,890 STATEMENT OF TRANSFERS/SUBSIDIES TO PUBLIC CORPORATIONS AND PRIVATE ENTERPRISES 46,890 46,890 TRANSFER ALLOCATION EXPENDITURE Adjusted Roll Adjustments Total Actual %of Capit Current NAME OF PUBLIC appropriation Overs Available Transfer Available al CORPORATION/PRIVATE Act funds ENTERPRISE transferred % Public corporations Bus Subsidies : National 298, , , % Bahwaduba Bus Services 22,859 22,859 22, % Madodi Bus Services 16,955 16,955 16, % Lowveld Bus Services 24,156 24,156 24, % G. Phadziri Bus Sevices 36,364 36,364 36, % Mabirimisa Bus Services 29,475 29,475 29, % Putco Bus Services % Risaba Bus Services 7,663 7,663 7, % Great North Bus Services 150, , , % Duo Light /Swangis Bus Services 9,834 9,834 9, % Bus Subsidies Provincial Subsidies 359, , , % Enos Bus Services 32,817 32,817 32, % Great North Bus Services 113, , , % Kopano Bus Services 28,787 28,787 28, % LimpopoTaxi Council 7,000 7,000 7, % Mabidi Bus Sevices 6,998 6,998 6, % Magwaba Bus Services 28,878 28,878 28, % Mathole Bus Sevice 16,405 16,405 16, % Mukondeleli Bus Services 12,803 12,803 12, % Mulaudzi Bus Services 21,281 21,281 21, % Netshituni Bus Services 45,002 45,002 44, % R.Phadziri Bus Services 15,657 15,657 15, % Duo Light /Swangis Bus Services 31,078 31,078 31, % Madodi Bus Services Sub total: Public corporations 658, , , % 43, /15 Appropriation Act 291,8S2 22,396 16,606 24,947 35,567 28, , ,887 9, ,089 32, ,651 28,352 5,000 6,957 28,423 15,769 12,612 20,693 44,321 15,371 30,526 7, ,941

175 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE1D STATEMENT OF TRANSFERS TO HOUSEHOLDS HOUSEHOLDS TRANSFER ALLOCATION EXPENDITURE Adjusted Roll Adjustm Total Actual %of appropriati Overs ents Availab Transfer Available on Act le funds transferre d Transfers Leave Gratuity 11,754 11,754 5,055 Bursaries: Non employees Claims against the State 2,850 2,850 2,841 ANNEXURE1H 14,884 14,884 8,154 STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED NAME OF ORGANISATION Received in cash Total Client Services : TCS Enabling Solution IT Master Truvelo Manufacturers (pty)ltd Subtotal Received in kind Old Mutual Group Scheme South African Breweries (SAB) Self Help Association of Paraplegics Mankweng Taxi Association Kopano Bus Company Subtotal NATURE OF GIFT, DONATION OR SPONSORSHIP Vouchers Vouchers Cash: Hiring of venue for memorial service Cash: Hiring of venue for memorial service Microwave Oven Washing Machines, Deep Freezers and Microwave Oven Toyota Quest 1.6 2x3/4 Beds(base & mattresses) Various appliances x 9 % 43% 92% 100% 2015/ /15 Appropriation Act 5, ,023 8, / TOTAL ANNEXURE 11 STATEMENT OF AID ASSISTANCE RECEIVED NAME OF DONOR PURPOSE OPENING BALANCE REVENUE Received in cash Road Traffic Management Corporation 38,043 6,600 Subtotal 38,043 6, EXPENDI- TURE 7,217 7, CLOSING BALANCE 37,426 37,426

176 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE1J STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE AND REMISSIONS, REFUNDS AND PAYMENTS MADE AS AN ACT OF GRACE NATURE OF GIFT, DONATION OR SPONSORSHIP 2015/ /15 (Group major categories but list material items including name of organisation) Made in kind The Mopai and Nthane families in Zebediela : Various appliance x9 12 The Mopai and Nthane families in Zebediela: 2 x3/4 beds (base and mattresses) 5 Driver of the year competition : Washing Machine, Deep Freezers and Microwave 65 TOTAL 82 ANNEXURE1K STATEMENT OF ACTUAL MONTHLY EXPENDITURE PER GRANT GRANT TYPE APRIL MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR TOTAL Public Transport Grant 21,909 24,460 24,546 27,329 24,574 24,902 26,080 25,119 24,751 24,763 49, ,298 Total 21,909 24,460 24,546 27,329 24,574 24,902 26,080 25,119 24,751 24,763 49, ,298 ANNEXURE 2A STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH LOCAL GUARANTOR Guarant Original Openin Guarant Guarantee Revalu INSTITUTION ee in guarant g ees draw d ations respect eed balance downs repayment of capital 1 April during s/ amount 2015 the year cancelled/ reduced/ released during the year Housing FNB 44 ABSA VBS Mutual Bank SS NP Development Bank (1) Subtotal (1) Closing Guarantee Realised balance d interest losses not 31 for year recoverable March ended 31 i.e. claims 2016 March paid out SS

177 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE 38 STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016 NATURE OF LIABILITY Opening Liabilities Liabilities balance incurred paid/ 1 April 2015 during the cancelled/ year reduced during the year Liabilites Closing recoverabl balance e (Provide 31 details March hereunder) 2016 Claims against the department Niewenhuis & Another v/s MEC 1,711 GWC Horn -vs-mec 100 Amanda Wilehemia Englelbecht-vs-MEC 422 Tshikiwani Ester Nukeri and Others -vs- MEC Mrs Mmako NS -vs- MEC Maake Mptswalo Philemon -vs- MEC Lephale Lebapa Lebtuation -vs- MEC Katishi Stephen Kopane vs MEC 84 4 Mr Pretorius vs MEC 4 4 Mr Lima Dubro vs MEC 1,000 Sodeka Robert Kabela vs MEC Shilubana B.N vs MEC 18 Moses Sipho Mahlagu vs MEC 38 Ma Nkoko vs MEC 16 1, ,

178 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE 38 STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016 NATURE OF LIABILITY Opening Liabilities Liabilities Liabilites Closing balance incurred paid/ recoverable balance 1 April 2015 during the cancelled/ (Provide 31 March year reduced details 2016 during the hereunder) year Claims against the department Andrie Ferreita vs MEC Johannes Wilhelm Les vs MEC J F Janse Van Rensburg vs MEC Victor Mashudu Davhana v/s MEC Graime Armstrong v/s MEC 2 2 Elias Gontse Madiba vs MEC Mahango M.J vs MEC Jacob Kwetepane vs MEC DR Randani Osbaorn Tshikosi vs MEC MR Ngwako Edward Gafane vs MEC Mrs Dikonketso Moabelo vs MEC 2 2 Mrs Aletta Kotze vs MEC 3 3 M.R Maluleke vs 5 5 Antoinette Geerdts vs MEC Nadia Fourie vs MEC 1 1 Mr Chavalala Jabulani vs MEC Mr L Du Pisane vs MEC Mante Eunice Maepa vs MEC Mathopa Ernest Kwena vs MEC 1 1 Wayne Gavin Van Den Berg vs MEC 6 6 Mario Patrick Peterson vs MEC 1 1 Boxing Philemon Sebola vs MEC 2 2 Cerva Brain vs MEC 2 2 Dawid Stephans Fourie vs MEC 3, ,867 PKG Dube VS MEC

179 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE 38 STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016 NATURE OF LIABILITY Opening Liabilities Liabilities balance incurred paid/ 1 April 2015 during the year cancelled/ reduced during the year Claims against the department Shingange David Masocha vs MEC 1 1 Malesela Brian Madiba vs MEC 4 4 A.E Tshivhase vs MEC 100 July Edward Malabela vs MEC 7 7 Tshikani Christopher Shirinda vs Matsuvuki Amos Sithole vs MEC Louise Schoeman vs MEC Joe Mtebule vs MEC 5 G.J Scheepers vs MEC 2 2 Nobela E and Ngobeni P vs MEC 120 SWP Hanekom vs MEC 5 5 Muafhe Johannes vs MEC 4,390 Ngululu Bulk Carries vs MEC 1,073 On Point Engineers (PTY) ltd vs MEC 2,610 2,610 Moimana Clement vs MEC 2 Mosima Rosemary Mohlahlane vs MEC 2 2 Chris Nkwinika vs MEC Roberto King VS MEC 1,000 Themba Skosana vs MEC 1 1 Judas Piet Skosana vs MEC 2 2 Ndou N.T vs MEC 200 Sarika Dayal Morar vs MEC Matlwa F.P vs MEC 2 2 Abakholwa Community Developers vs MEC 1,720 Aphane P.K vs MEC 4 4 Khutje Johannes Mseteka vs MEC 1 1 Liabilites Closing recoverable balance (Provide 31 March details 2016 hereunder) ,390 1, , ,720

180 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE 38 STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016 NATURE OF LIABILITY Opening Liabilities Liabilities Liabilites balance 1 incurred paid/ recoverable April 2015 during the cancelled/ (Provide year reduced details during the hereunder) year Claims against the department Malumane V.M vs MEC 3 3 Jan Maarten Kruger vs MEC Nkgabe Jan Maanaso vs MEC 1 1 Sello Andrew Makhuthudisa vs MEC 1 1 Joseph Makusku vs MEC 9 9 Thembhani Lettuce Chauke vs MEC 1 1 Mokoena Mosoetsi Edwin vs MEC 1,000 Badugela Shavhani Albert vs MEC 1,500 Tinyiko Mhlanga vs MEC Malebo Monica Josephine Namane vs MEC 3 3 Monashane J vs MEC 1 1 Mokwapa Frans Makgae vs MEC 6 6 Sandvik Minning (Modise Letsapa) vs MEC J Du Preez vs MEC Leigh Lepelle vs MEC 3 3 Pohotona D.T vs MEC 5 5 Themba Khumalo vs MEC 35 L.J De Klerk vs MEC 580 Koegelenberg N.C vs MEC 10 Joy Matshoge vs MEC Tighitsi N.E vs MEC 10,000 10,000 Mahole Michael Clarence vs MEC 4 Venter Dricky Karen vs MEC 3 3 Closing balance 31 March ,000 1,

181 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE3B STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016 NATURE OF LIABILITY Opening Liabilities balance incurred 1 April during the 2015 year Claims against the department Mthobeni J vs MEC Makgamatha Moyahabo Jerry vs MEC Fourie Annelize vs MEC Tshidiso Travels vs MEC On Point Engineers (PTY) ltd In Curatorship vs MEC Bakker Anton vs MEC Mosefe Ishmael Dolamo vs MEC Craill Christo vs MEC Mothiba M.E vs MEC Makweng Chicken & Eggs vs MEC Coetzee Johannes vs MEC Botha W.S vs MEC Muswese Louisah vs MEC Mhangwane G.T vs Mee Phalane Mamphane Eva vs MEC Mhangwane G.T vs Mee Hasane Nhlahla vs MEC Ettmeyer S vs MEC Mbedzi Frank vs MEC Gutter Paul vs MEC Stirk R.C vs MEC Capricorn Security Services vs MEC Chauke Thomas vs MEC Malola Mercy Makhukhu vs MEC Makwela Pheagane Brain vs MEC Homeland Media cc vs MEC , , ,000 5, Liabilities paid/ cancelled/ reduced during the year , Liabilites Closing recoverabl balance e (Provide 31 March details 2016 hereunder) 1 7, , ,000 1

182 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE 38 STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016 NATURE OF LIABILITY Opening Liabilities Liabilities paid/ Liabilites balance incurred cancelled/ recoverabl 1 April 2015 during the reduced during e (Provide year the year details hereunder) Claims against the department Skhosana Lukas vs MEC 100 Skhosana Kleinbooi vs MEC 82 Mohale Ntate William vs MEC Maliavusa Aifheli Humphery 2 Unathi Bere vs MEC 170 Mathivha Elelwane Maemu vs MEC 2 Dorota Czerpinska vs MEC 70 Tlaka Hertbert Letlakane vs MEC 1 Swafo Ngwetsama Elika vs MEC 519 Allen Pugh vs MEC 21 Ledwaba Reginald Johannes Malose vs MEC 300 Semenya Chris vs MEC Matjipa LS vs MEC 2 Maluleka Elias vs MEC 1 Makhubele Mashango Godfrey vs MEC 2 2 Magoro K.J vs MEC 2 Malitsha Shumani vs MEC 3 Sambo Doctor Calvin vs MEC 1 Sebelemetja Leonard Tsietsi vs MEC 3 Vandzawu General Trading vs MEC Ratau Moleka Mathews vs MEC 3 Juan Marie vs MEC 7,850 Makoela JM vs MEC 100 Ntsoane M.F vs MEC 100 Machabaphala MM vs MEC Dhladhla M VS MEC Closing balance 31 March ,

183 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE 38 STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016 NATURE OF LIABILITY Opening Liabilities Liabilities balance incurred paid/ 1 April 2015 during the cancelled/ year reduced during the year Claims against the department Mabasa Hasani Eric vs MEC 300 Maluleka Steven vs MEC Anthony Lewis vs MEC Matlala MC vs MEC Naude Helan Maria vs MEC 1 1 Zungu Sifiso Erick 2 2 Maake Meshack Vincent vs MEC 23 Shai Abram Mapiti vs MEC 2 Motlhakoane Mosito Reuben vs MEC 3 Moabelo Lesiba Stephen vs MEC Sekhuda Michael Sontaga vs MEC 86 Matjomane Khomotjo vs MEC 1 1 SOS Brunette George Francois vs MEC 1,750 Mangwato M.G vs MEC 9 9 Allied Plant 2000 cc vs MEC 12 Dawid Hermanus Botes vs MEC 259 Mahlatse Prince vs MEC 100 Van Heerden VA vs MEC 6 Snyman Gordan vs MEC 44 Kgaphola Simon Rakgoane vs MEC 1 Mogoboya William Matsobane vs MEC 19 7 Johannes Jacobus Marthinus Van Der Westhuizen vsmec 195 Molepo Kwakwadi Daniel vs MEC Boloto Armando vs MEC 74 Steyn Dirk Johannes vs MEC 49 Maphaha Tshifhiwa Churchill vs MEC Liabilites Closing recoverable balance (Provide 31 March details 2016 hereunder) 300 SOS ,

184 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE3B STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016 NATURE OF LIABILITY Opening balance Liabilities Liabilities paid/ Liabilites Closing 1 April 2015 incurred cancelled/ recoverabl balance during the reduced during e (Provide 31 March year the year details 2016 hereunder) Claims against the department Chipu M.G vs MEC Thama Sehlare Wilhemina vs MEC Netshiavha T.E vs MEC Segabutla Micheal Sponono vs MEC 2 2 Komape E.P vs MEC 4 4 Janse Van Rensburg P.J vs MEC 4 4 Hloaela Jan vs MEC 1 1 Mashiane Marcus vs MEC 2 2 Dhanasa SA Garen Nair vs MEC Matshika Everence V.A vs MEC 8 8 Mutibi Marcus M vs MEC Ndlovu Tintswalo vs MEC 1 1 Selepe Tlou Edwin vs MEC 1 1 Larson G.E vs MEC 7 7 Johan Steyl vs MEC 3 3 Lenette Saayman vs MEC Vercueil Ellen Deon vs MEC Van Niekerk Francois vs MEC Sebenzile Gana vs MEC 4, ,500 Masenya T.J vs MEC 2 2 Kurt Bradford Severain vs MEC 4 4 Morne Muller vs MEC Rasheeq Contractors BK vs Sebego Maloka & Vilioen Civill Engineers vs MEC Merrick Henry vs MEC Pylman Juan vs MEC 1 1 Mashifane Jimmy Mamanye vs MEC

185 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE 38 STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016 NATURE OF LIABILITY Opening Liabilities Liabilities paid/ Liabilites Closing balance incurred cancelled/ recoverable balance 1 April 2015 during the reduced during (Provide 31 March 2016 year the year details hereunder) Claims against the department Lusenga Galie Emmanuel vs MEC Tshifularo Freddy Mafhura vs MEC Raliwedza T.V vs MEC Dzivhani Lutendo Fitzgerald vs MEC Motlanthe Masila Stephenm vs MEC 6,075 6,075 Fourie Pieter Sarel vs MEC Raganya M.R vs MEC 1,700 1, Lepulane M.M vs MEC 1 1 Shihundla N.P vs MEC 7 7 Du Toit Jan Johannes vs MEC 6 6 Mphelo L vs MEC Maropola T.G vs MEC 3 3 Zwane Toy Jonas vs MEC 4 4 Mbambale Maria Namadzavho vs MEC 2 2 Sepheu Ntipu Gibson vs MEC 2 2 Serna Thomas Maphofora vs MEC 2 2 Mudimeli Peter Nditsheni vs MEC 2 2 Mafalo Humpfry Katlego vs MEC Venter Willem VS MEC Delta Property Fund LTD vs MEC Priggle Cornelia Isabella vs MEC 2 2 Vuyisa Zukile Garret Adams vs MEC 6 6 Chauke M.B vs MEC JCS Van Wyk vs MEC Govender Rubentharan vs MEC Joey Van Heerden vs MEC 1 1 Phulwana R.F vs MEC 3 3 Mahadulula A.A vs MEC 10 10

186 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE 38 STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016 NATURE OF LIABILITY Opening Liabilities Liabilities paid/ Liabilites Closing balance incurred cancelled/ recoverable balance 1 April 2015 during the reduced during (Provide 31 March year the year details 2016 hereunder) Claims against the department Kgooa Tebogo Lekgau vs MEC 3 3 Boshego Patrick vs MEC Smit Gerald Pieter vs MEC 9 9 Leope Nixson Mohlala vs MEC Tladi Tumishi Hebron vs MEC 5 5 Shoprite Checkers vs MEC 6 6 Stickling Andre vs MEC Theunissen Hannes vs MEC 57 Masobela Monaheng Joseph vs MEC 5 5 Phakwe Jacob Tshepiso vs MEC 5 5 Mphela ND vs MEC Mothotse M vs MEC Mogaladi L vs MEC Viljoen Kenneth M vs MEC Potgieter Natasha (1) vs MEC 9 9 Potgieter Natasha (2) vs MEC Coetzee Chari vs MEC Muneo Martha Muriel vs MEC 1 1 Malindi M vs MEC Barned Vermaas vs MEC Sebyeng P.E vs MEC Maepa Eunice Mante vs MEC 3 3 Nenzelele Arinao Patience vs MEC Swardt Redge D.E vs MEC Molokomme Palesa vs MEC Truter Barend vs MEC Fernandes Marlene vs MEC

187 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE 38 STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016 NATURE OF LIABILITY Opening Liabilities Liabilities paid/ balance incurred cancelled/ 1 April 2015 during the year reduced during the year Claims against the department Le Roux Jacobus Gabriel vs MEC 48 Russell Alan Michael Vincent vs MEC 10 Snyman Jacques vs MEC Maloba Nicholus Maespla vs MEC 19 Smith Michael Duncan vs MEC 15 Meyer Frederick Coenraad vs MEC 11 Maimela Phillemon Mahudu vs MEC 2 Cilliers Daniel vs MEC 32 Makhubela S.R vs MEC 15 Thaba M.J (Bronlink ) vs MEC Mahori Rhulani vs MEC 3 Wendy Strauss vs MEC 16 Leara Levy vs MEC Mhangwana MM vs MEC 6 6 Mokwena Mpere vs MEC 73 Siligana lvhani vs MEC 100 Mabitsela AC VS MEC 1 1 Marothi JS vs MEC (Matiela Monicca Choeu) 24 Thaba MT vs MEC 29 Phokoane Frans Phasha vs lsaah Wilskut Modisha (olb} VS MEC 500 Jones JC vs MEC 87 Lubbe Gert VS MEC 16 Russell Dickinson vs MEC Eis Christiaan Phillipus vs MEC 200 Pretorius Chantelle vs MEC 1,800 Ramasha T.R 100 S.A Auto Parts vs MEC Liabilites Closing recoverable balance (Provide 31 March details 2016 hereunder) ,

188 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE 3B STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016 NATURE OF LIABILITY Opening Liabilities Liabilities paid/ Liabilites Closing balance 1 incurred during cancelled/ recoverable balance April 2015 the year reduced during (Provide details 31 March 2016 the year hereunder) Claims against the department Botha JM vs MEC Letoka FS vs MEC Mavhutha Tshianelo vs MEC Hydromucl CJ (PTY) LTD vs MEC Ntlatlana K.M vs MEC Kemelo Mocheko vs MEC 1 1 Phillipine Phuti Mabetwa vs MEC Matsimela Tau Donald vs MEC 8 8 Maseko Sipho vs MEC 2 2 Masemola MP vs MEC Mathebula MP vs MEC Sithorisa Donald Makapela vs MEC 2 2 Maswanganyi Hanyani Lawrence vs MEC 2 2 Makhomisani Moloko vs MEC Matshegoa Ntirhelang John vs MEC 2 2 Hlongwane GM vs MEC Allanson Douglas Lain vs MEC 1 1 Chauke F.P vs MEC Khwinana Lesiba Alfred vs MEC Van Wyk JS vs MEC 1 1 Skgobela FP VS MEC Tladi MA vs MEC Mamogoba S vs MEC 9 9 Macevele S vs MEC 1 1 Magwato M.G vs MEC 9 9 Venter Johan vs MEC 31 31

189 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE3B STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016 NATURE OF LIABILITY Opening Liabilities Liabilities paid/ balance 1 incurred cancelled/ April 2015 during the reduced during year the year Claims against the department Du Plessis J.P vs MEC 1,588 Hercules Alan Myburgh vs MEC 57 Rampai Piet Dube vs MEC 90 Potgieter Jacobus Lourens vs MEC 2 Horn Marthinus JJ vs MEC 15 Fourithis Loanis vs MEC 532 Masemola Thaule vs MEC 24 Thetane John Mbovhu vs MEC 100 Rebb Philip vs MEC 13 Maimela Tsebo Phillipus vs MEC 1 Kilian Conrade vs MEC 200 Mitisa MF vs MEC 17 Matwale Zeth Makua & Another vs Mokgate George vs MEC 120 Mokgalaka M.J vs MEC 93 Maluleke M.H vs MEC Van Heerden Debra Ann vs MEC 650 Gwagwa Andrew Mashieng vs MEC 123 Masha Phorane Peter vs MEC 25 Morema Mpho vs MEC 2,000 Mazibuko Gesani vs MEC 115 J&R Bearings and Industrial Supplier vs MEC 200 Nashua Limpopo vs MEC 31 Maluleke Mihlothi Henry vs MEC 500 Mmamokgoshi Construction cc vs MEC 4,100 Mannye Malope Joseph vs MEC 100 Moropodi BN vs MEC 6 Liabilites Closing recoverabl balance e (Provide 31 March details 2016 hereunder) 1, , ,

190 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE 38 STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016 NATURE OF LIABILITY Opening Liabilities Liabilities Liabilites balance incurred paid/ recoverable 1 April 2015 during the cancelled/ (Provide year reduced details during the hereunder) year Claims against the department Magabe Daniel Thwaledi vs MEC 100 Ngashiane Marcus Molebatsi vs MEC 1, Masese Klass Madigoe vs MEC 222 G&C Cafe Supermarket & Bakery vs MEC Morifi Phillip Masheng vs MEC 2,025 Manganyi KC vs MEC 2 Makgalatiba Vusi Abram vs MEC 200 MPA Investigator 323 Baeta Alberto vs MEC 11 Nkadimeng SF vs MEC Subtotal 91,516 16,856 27, Closing balance 31 March , ,234 ANNEXURE4 CLAIMS RECOVERABLE Confirmed balance outstandina Unconfirmed balance outstandina Total GOVERNMENT ENTITY 31/03/ /03/ /03/ /03/ /03/ /03/2015 DEPARTMENTS Department of Education Corporate Governance GEPF : Government Employee Pension Fund Gauteng Department of Infrastructure Development Department of Community Safety Department of Public Works, Roads & Infrastructure 5, , Department of Corporative Governance, Human 106 Settlement & Traditional Affairs Department of Agriculture and Rural Develop 32 Limpopo Legislature , ,

191 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 ANNEXURE 5 INTER-GOVERNMENT PAYABLES Confirmed balance outstanding Unconfirmed balance outstanding Total GOVERNMENT ENTITY DEPARTMENTS Current Dept Economic Dev,Environment & Tourisim (Limpopo) Dept Health and Social Development Dept Higher Education and Training Dept Education The Statistics South Africa Dept of Public Works Subtotal 31/03/ /03/ /03/201 31/03/201 31/03/201 31/03/ ANNEXURE6 INVENTORY Inventory Opening balance Add/(Less): Adjustments to prior year balances Add: Additions/Purchases - Cash Add: Additions - Non-cash (Less): Disposals (Less): Issues Add/(Less): Adjustments Closing balance Note 2015/16 Quantity I 21,102 2,162 11,033 10,065 (98,199) (10,041) (66,064) 2, /15 Quantity I 1,329,280 35, ,356 13,897 (478,337) (35,817) (944,197) (11,330) 21,102 2,162

192 DEPARTMENT OF TRANSPORT VOTES NOTE TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 Movement in Capital Work-in-Progress MOVEMENT IN CAPITAL WORK-IN-PROGRESS FOR THE YEAR ENDED 31 MARCH 2016 Opening Current Year Completed Closing balance balance CapitalWIP Assets BUILDINGS AND OTHER FIXED STRUCTURES 605,789 4,853 (29,530) 581,112 E Dwellings Non-residential buildings Other fixed structures 4,853 (29,530) 581,112 TOTAL 605,789 4,853 (29,530) 581,112 MOVEMENT IN CAPITAL WORK-IN-PROGRESS FOR THE YEAR ENDED 31 MARCH 2015 Prior Current Completed Closing Opening period Year Assets balance balance errors Capital WIP BUILDINGS AND OTHER FIXED STRUCTURES 680,208 (86,138) 11, ,789 Dwellings Non-residential buildings 680,208 (86,138) 11, ,789 Other Fixed Structures TOTAL 680,208 (86,138) 11, ,789

193 Notes

194 Notes

195

196 LIMPOPO PROVINCIAL GOVERNMENT REPUBLIC OF SOUTH AFRICA Head Office: Limpopo Department of Transport Corner Church and Bodenstein Street Tel: Fax: PR: 91/2016 ISBN: