ANNUAL REPORT Department of Co-operative Governance and Traditional Affairs. Department of Co-operative Governance and Traditional Affairs

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1 ANNUAL REPORT Department of Co-operative Governance and Traditional Affairs Department of Co-operative Governance and Traditional Affairs Annual Report Department of Co-operative Governance and Traditional Affairs

2 ANNUAL REPORT Department of Co-operative Governance and Traditional Affairs...Annual Report

3 TABLE OF 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 LEGISLATIVE AND OTHER MANDATES ORGANISATIONAL STRUCTURE ENTITIES REPORTING TO THE MEC...13 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: Local Governance Programme 3: Development and Planning Programme 4: Traditional Institution Management Programme 5: House of Traditional Leaders CONDITIONAL GRANTS Conditional grants and earmarked funds paid Conditional grants and earmarked funds received DONOR FUNDS Donor Funds Received CAPITAL INVESTMENT Capital investment, maintenance and asset management plan...42 PART C: GOVERNANCE INTRODUCTION RISK MANAGEMENT FRAUD AND CORRUPTION MINIMISING CONFLICT OF INTEREST CODE OF CONDUCT HEALTH SAFETY AND ENVIRONMENTAL ISSUES PORTFOLIO COMMITTEES SCOPA RESOLUTIONS PRIOR MODIFICATIONS TO AUDIT REPORTS INTERNAL CONTROL UNIT INTERNAL AUDIT AND AUDIT COMMITTEES AUDIT COMMITTEE REPORT PART D: HUMAN RESOURCE MANAGEMENT PART E: FINANCIAL INFORMATION REPORT OF THE AUDITOR GENERAL ANNUAL FINANCIAL STATEMENTS Annual Report Department of Co-operative Governance and Traditional Affairs i

4 PART A GENERAL INFORMATION ANNUAL REPORT Department of Co-operative Governance and Traditional Affairs...Annual Report

5 1. DEPARTMENT GENERAL INFORMATION PHYSICAL ADDRESS: HEAD OFFICE Building 6/7 Riverside Government Complex MBOMBELA 1200 POSTAL ADDRESS: Private Bag X11304 MBOMBELA 1200 TELEPHONE NUMBER/S: FAX NUMBER: ADDRESS: WEBSITE ADDRESS : cmchunda@mpg.gov.za Annual Report Department of Co-operative Governance and Traditional Affairs 2

6 2. LIST OF ABBREVIATIONS/ACRONYMS AGSA AO APP BBBEE CFO COGTA CDW CWP CAPEX DARDLEA DCOG DEDET MEC HOD PFMA TR MTEF SMME SCM EU SITA SDIP Auditor General of South Africa Accounting Officer Annual Performance Plan Broad Based Black Economic Empowerment Chief Financial Officer Co-Operative Governance and Traditional Affairs Community Development Worker Community Works Programme Capital Expenditure Department of Agriculture Rural Development Land Affairs and Environment Department of Co-operative Governance Department of Economic Development and Tourism Member of Executive Council Head of Department Public Finance Management Act Treasury Regulations Medium Term Expenditure Framework Small Medium and Micro Enterprises Supply Chain Management European Union State Information Technology Agency Service Delivery Improvement Plan 3 Department of Co-operative Governance and Traditional Affairs...Annual Report

7 3. FOREWORD BY THE MEC Although two municipalities, namely Ehlanzeni District and Steve Tshwete Local Municipality have obtained clean audits in the 2013/14 financial year, non-achievement of a similar feat by the 19 other municipalities, in line with Operation Clean Audit 2015 remains a matter of concern. Notwithstanding the remedial actions recommended by the (A-G) and the support of the department, the Provincial Treasury and the Districts, this target could not be achieved. The intervention period in two of our local municipalities, namely Bushbuckridge and Emalahleni, which were placed under Administration in line with Section 139 1(b) of the Constitution was concluded. Our resolve to address challenges related to the instability of both municipalities that hampered the provision of services was achieved. The vacancies for a Municipal Manager and Section 57 Managers have been filled in Bushbuckridge, to prevent a relapse for the municipality. In emalahleni, an Acting Municipal Manager has been appointed to address structural defects with the potential to hamper the provision of water to the growing population and road infrastructure. HON. REFILWE MTSHWENI (MPL) MEC: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS The 2014/15 Annual Report gives an account of the achievements we have recorded in line with the commitments made at the beginning of the financial year. Challenges that hampered the achievements of some of the targets are also highlighted in this report. In compiling the report, special attention was given to service delivery imperatives such as water and sanitation, strengthening local government and support for the institution of traditional leadership in line with the mandate of the department. Our water intervention plans are paying off. During the period under review households were connected to the water system. Our focus to provide water sought to make the delivery of water, a reality, as one of the five key priorities in Mpumalanga. The number of households without water has been reduced from to With this we march towards the target of providing access to water for all our people by 2030, as set out in the National Development Plan (NDP). 84 bulk water supply and water reticulation projects across all our municipalities were commissioned to address water and sanitation challenges. 9 steel water reservoirs were also commissioned in three of our local municipalities, namely Bushbuckridge, Nkomazi and Mbombela. These projects have storage capacity of 2 mega-litres each and will augment the current supply of water to the local communities. We have exceeded our target of maintaining the job opportunities created through the Community Works Programme (CWP). During the year under review, the department maintained job opportunities and further created 2000 new jobs through the CWP in line with output 3 of outcome 9 of the delivery agreement. Pursuant to the NDP s goal of building a capable and responsive developmental local government, the department in conjunction with the Provincial Treasury developed a plan to help municipalities to recoup debts owed by government departments and consumers for water and electricity services. The plan sought to collect debts owed to municipalities with a view to strengthen them to roll out basic services in accordance with their legislative mandate. The department s clean audit goal has been achieved. This is attributed to a high level of commitment demonstrated by the management and officials at all levels. This serves as an impetus for the department to champion the cause of clean audits in all the 21 municipalities. Over and above, this will improve public perception about the proper spending of public funds as it was verified by an independent and reputable institution, the Auditor-General (A-G). The Department has made significant progress in supporting municipalities to fill Municipal manager and Senior Managers posts in compliant with relevant legislation. The department has developed an Integrated Municipal Support Plan (IMSP) for all our municipalities to deal with the five pillars embraced in the Back to Basics national programme. These are: Good Governance, Administration, Sound Financial Management, Community engagement and Participation and Basic service delivery. Amongst issues addressed by the IMSP is the accelerated basic service delivery, specifically water and sanitation, filling of vacant positions, such as Municipal Managers and Senior Managers, restoration of good governance through proper governance system, tackling financial management issues in line with the Municipal Finance Management Act in collaboration with the Provincial Treasury and putting people first, through Public Participation, effective functioning of Ward Committees and the role of Community Development Workers (CDWs) must play to unblock service delivery challenges. Whilst the plan is still at an infancy level as was approved in September 2014, much ground has already been covered by the end of the 2014/15 especially with the diagnosis of the challenges and remedial actions in addressing challenges identified. Going forward, the department will coordinate various stakeholders to ensure that support is provided to all municipalities. The construction of four traditional councils, namely Moreiputso, Malele, Umjindi and Barolong Ba Lefifi is well underway. This forms part of the support for the institution of traditional leadership in line with the government s tools of trade framework. Training which focused on financial operations, control systems as well as Traditional Leadership Protocol and Etiquette was provided, as part of capacity building enshrined in the Traditional Leadership and Governance Framework Act of We have made sufficient progress in our effort to resolve disputes plaguing the institution of traditional leadership. Of the 163 claims lodged to the Provincial Committee on Traditional Leadership Disputes and Claims, 46 cases have been finalized during the year under review. Buoyed by this progress, we are convinced that all outstanding cases would be finalized by December 2015, which marks the end of the term of the committee. MS. R.M. MTSHWENI MEC for the Department of CoGTA Date 31/05/2015 Annual Report Department of Co-operative Governance and Traditional Affairs 4

8 4. REPORT OF THE ACCOUNTING OFFICER MR. C.M. CHUNDA HEAD OF DEPARTMENT Overview of the operations of the department During the year under review, the Department continued to make progress towards support to Local Municipalities and Traditional Councils in delivering on their mandates through the Integrated Municipal Support Program, amongst others the Department: Continued its support to Local Government with section 139(1) (b) of the constitution to emalahleni and Bushbuckridge Local Municipalities. Provided support of two municipalities in terms of section 54 A (6)(a) of the Local Government Systems Act, by seconding suitable persons to act on vacant positions of municipal managers in Victor Khanye and Thaba Chweu Local municipalities. Provided support to traditional councils with the construction of offices to be completed in the 2015/16 financial year. Implemented the Expanded Public Works Program (EPWP) and in the process created 146 full time equivalent jobs. Continued with the construction of Nine steel water reservoirs in Mbombela, Nkomazi and Bushbuckridge Local Municipalities and six (6) are completed while three (3) are on retention stage CWP participants have been maintained in the province. Provided financial support to Lekwa Local Municipality through Gert Sibande District Municipality on the War on Leaks programme. Challenges The department is faced with some challenges for the year under review and amongst others: Lack of stability both politically and administratively in some of our Local Municipalities continue to pose serious challenges in as far as service delivery is concerned. Poor financial viability continues to adversely affect our Local Municipalities in recruiting and retaining qualified technical professionals and CFOs. Failure by some of our Local Municipalities to spend on Municipal infrastructure Grant (MIG) has led to poor service delivery. Disputes over chieftaincy arises amongst traditional leadership. Overview of the financial results of the department Departmental receipts Departmental receipts Estimate Amount Collected 2013/2014 Actual (Over)/Under Estimate Actual Collection Amount Collected (Over)/Under Collection Sale of goods and services other than capital assets R 000 R 000 R 000 R 000 R 000 R Interest, dividends and rent on land (160) (346) Sale of capital assets (27) (347) Financial transactions in assets and (106) liabilities Total (787) 5 Department of Co-operative Governance and Traditional Affairs...Annual Report

9 The department has no revenue producing activities except for bank interest, debt recovery and sale of scraped assets through government auctions. Programme Expenditure Programme Name Final 2013/2014 Actual (Over)/ % Spent Final Actual (Over)/Under Expenditurpenditure Under Ex- Expenditure Expenditure R 000 R 000 R 000 R 000 R 000 R 000 Administration % % Local Governance % % Planning and Development % % Traditional Institution Management % % House of Traditional Leadership % % Total % % % Spent The Department s main appropriation for 2014/15 is R million and was adjusted to R million during the November adjustment appropriation and was further adjusted to R million during the second adjustment in March 2015 compared to R million final appropriation in 2013/14. The department spent R million or 99.1 per cent of the adjusted budget as at 31 March 2015, compared to R million or 93.8 per cent in 2013/14.The department underspent by R4.006 million or 0.9 per cent, compared with R million or 6.2 per cent in 2013/14. As reported in notes 20 of the Annual financial statements, the department had accruals amounting to R1.456 million (R2.068 million in 2013/14) as at 31 st March The department did not incur unauthorised, irregular and fruitless and wasteful expenditure for the year under review. Programme 01: Main appropriation was R million and the final adjusted budget was R million. The programme spent R million or 99.9 per cent compared with R million or 96.7 per cent in 2013/14 financial year. The programme had an immaterial under spending of R0.132 million or 0.1 per cent. The programme has achieved all its planned targets. Programme 02: Main appropriation was R million and the final adjusted budget is R million. The programme spent R million or 100 per cent compared with R million or 98.8 per cent in 2013/14 financial year. The programme had an immaterial under spending of R0.008 million or 0 per cent. The programme achieved fourty two out of fourty seven or 89 per cent of its planned targets and reasons for deviation are detailed on Part B of the Annual report. Programme 03: Main appropriation was R million and final adjusted budget is R million. The programme spent R million or 99.6 per cent compared with R million or 73.3 per cent in 2013/14 financial year. The programme under spent by R3.4 million or 3.4 per cent which is committed for the payment of retention fees for the water reservoir projects and construction of offices. The programme achieved thirty five out of fourty three or 81 per cent of its planned targets and reasons for deviation are detailed on Part B of the Annual report. Programme 04 Main appropriation was R million and final adjusted budget is R million. The programme spent R million or 99.7 per cent compared with R million or 98.5 per cent in 2013/14 financial year. The programme had an immaterial under spending of R0.238 million or 0.3 per cent. The programme achieved nine out of twelve or seventy five per cent of its planned targets and reasons for deviation are detailed on Part B of the Annual report. Programme 05 Main appropriation was R13.36 million and final adjusted budget is R million. The programme spent R million or 99.1 per cent compared with R million or 94.2 per cent in 2013/14 financial year. The programme had an immaterial under spending of R0.129 million or 0.9 per cent. The programme has achieved all its planned targets. Virement and Rollovers During mid-term adjustment an additional amount of R million was added to the baseline of the department including rollovers amounting to R million. However a second adjustment was done in March 2015 and an amount of R8.0 million was surrendered to the Provincial Revenue fund. Annual Report Department of Co-operative Governance and Traditional Affairs 6

10 The budget adjustments effects have been reflected on the table below; DESCRIPTION AMOUNT R 000 PROGRAMME Mid-term Adjustment Additional Amount Received For Procurement Of Disaster Materials Development and Planning Additional Amount Received For The Water Resevoir Project Development and Planning Roll Over Received For The Water Resevoir Project Development and Planning Roll Over Received For Commitments On Goods And Services 779 Administration Surrender of savings on Compensation of Employees (7 478) Local Governance Sub-Total Second Adjustment Surrender of under expenditure on Payments for Capital Assets (8 000) Development and Planning TOTAL Virements The following virements were made during the 2014/15 financial year in line with the Public Finance Management Act and its Regulations requirements; TRANSFER FROM TRANSFER TO AMOUNT R 000 Administration Local Governance Development and Planning Local Governance Administration 301 Traditional Institutional Management The House of Traditional Leaders Administration 269 Future plans of the department The department will intensify its effort in supporting Municipalities in the implementation of the Integrated Municipal Support Plan and compliance with Spatial Planning and Land Use Management Act (SPLUMA). The department will finalize the construction of offices for the 4 traditional councils in 2015/16 financial year. The department will increase the number of CWP participants from to Public Private Partnerships The department did not have any PPP project for the year under review. Discontinued activities / activities to be discontinued No discontinued activities Supply chain management The department did not have unsolicited bid proposal for the year under review. The department has established a fully functional Supply chain management unit. We have adopted a supply chain management policy and internal control processes. All our officials have signed financial disclosure forms and we have adopted a fraud prevention policy. The unit prepares and submit monthly SCM reports to the Provincial Treasury. We have a functional system of internal control that assist in the prevention and early detection of irregular, fruitless and wasteful expenditure. Officials doing business with the state continues to be our challenge. We however have resolved this by verifying all owners of business entities in our database against PERSAL system and communication with all departments and municipalities where we discover their employees in our database. The verification is an ongoing process. Gifts and Donations received in kind from non-related parties No gifts and donations were received in kind from no-related parties. List the nature of the in kind good and services provided by the department to or received from parties other than related parties. The department did not receive goods or services from parties other than related parties. Exemptions and deviations received from the National Treasury No exemptions or deviations were received from the National Treasury. Events after the reporting date The department has processed the payment of accruals amounting to R1.456 million for 2014/15 financial year during the first quarter of the new financial year (2015/16). 7 Department of Co-operative Governance and Traditional Affairs...Annual Report

11 Other There is no any other material fact or circumstances, which may have an effect on the understanding of the financial state of affairs, not addressed elsewhere in this report. Acknowledgement/s or Appreciation The Accounting officer would like to acknowledge and appreciate the support received from the MEC, Senior Management and Staff of COGTA to make this year a success. Conclusion I trust that the financial statement and the whole annual report is a fair presentation of the state of affairs and performance of the department for the year under review Approval and sign off The annual financial statement as set out in pages 71 to 117 has been approved by the Accounting Officer. Mr CM Chunda Accounting Officer Date 31/05/2015_ Annual Report Department of Co-operative Governance and Traditional Affairs 8

12 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 throughout the annual report are consistent. 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 that 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. 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 Yours faithfully Mr CM Chunda Accounting Officer Date 31/05/ Department of Co-operative Governance and Traditional Affairs...Annual Report

13 6. STRATEGIC OVERVIEW 6.1 Vision Responsive, effective, efficient and sustainable cooperative governance system. 6.2 Mission To coordinate, support, monitor and strengthen an integrated cooperative Governance system. 6.3 Values Guided by the spirit of Batho Pele, our values are: Goal orientated Professionalism Learning and development Responsive Integrity Honesty Excellence in Service Delivery 7. LEGISLATIVE AND OTHER MANDATES 7.1 Constitutional Mandate The following Chapters with the relevant sections of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996) is important regarding the specific constitutional mandates of the Department: The Constitution of the RSA Act, 108 of 1996 The Department subscribes to the Founding Provisions of the Constitution, the Bill of Right as well as the principles of co-operative government and intergovernmental relations as contained in Chapter 1; 2 and 3 of the Constitution of the Republic of South Africa, Chapter 6 of the Constitution of the RSA Act, 108 of 1996 sec.139 The MEC as per the directives of the Provincial Executive Committee (EXCO) may intervene in the affairs of a municipality Chapter 7 of the Constitution of the RSA Act, 108 of 1996, sec154 The MEC as assigned by the Provincial Government to ensure by legislative or other measures support and strengthen the capacity of municipalities to manage their own affairs, to exercise their powers and to perform their functions Chapter 7 of the Constitution of the RSA Act, 108 of 1996, sec155(6) The MEC as assigned by the Provincial Government to establish municipalities in the province in a manner consistent with legislation enacted in terms of subsections (2) and (3) and, by legislative or other measures, must monitor and support local government in the province; and promote the development of local government capacity to enable municipalities to perform their functions and manage their own affairs Chapter 7 of the Constitution of the RSA Act, 108 of 1996, sec155(7) The MEC as assigned by the provincial government, subject to section 44, has the legislative and executive authority to see to the effective performance by municipalities of their functions in respect of matters listed in Schedules 4 and 5, by regulating the exercise by municipalities of their executive authority referred to in section 156(1) Chapter 7 of the Constitution of the RSA Act, 106 of 1996 (as amended), sec 163(b) The Department to be responsible to determine procedures by which the Department may consult with National Government, designate representatives to participate in the NCOP and the Financial and Fiscal Commission Chapter 12 of the Constitution of the RSA Act, 106 of 1996 (as amended), sec212 The Department to acknowledge the role for Traditional Leadership as an institution at local level on matters affecting local communities and to deal with matters relating to traditional leadership, the role of Traditional Leaders, customary law and the customs of communities observing a system of customary law by the establishment of houses of Traditional Leaders. Annual Report Department of Co-operative Governance and Traditional Affairs 10

14 7.1.8 Local Government: Municipal Structures Act, 1998 (Act No. 117 of 1998) The Act empowers the MEC to establish municipalities in accordance with the requirements relating to categories and types of municipality; to establish criteria for determining the category of municipality to be established in an area; to define the type of municipality that may be established within each category; to provide for an appropriate division of functions and powers between categories of municipality; to regulate the internal systems, structures and office-bearers of municipalities; to provide for appropriate electoral systems; and to provide for matters in connection therewith Local Government: Municipal Systems Act, No.32 of To provide for the core principles, mechanisms and processes that are necessary to enable Municipalities to move progressively towards the social and economic upliftment of local communities, and ensure universal access to essential services that are affordable to all; to define the legal nature of a municipality as including the local community within the municipal area, working in partnership with the municipality s political and administrative structures; to provide for the manner in which municipal powers and functions are exercised and performed to provide for community participation; to establish a simple and enabling framework for the core processes of planning, performance management, resource mobilization and organizational change which underpin the notion of developmental local government; to provide a framework for the provision of services, service delivery agreements and municipal service districts; to provide for credit control and debt collection; to establish a framework for support, monitoring and standard setting by other spheres of government in order to progressively build local government into an efficient, frontline development agency capable of integrating the activities of all spheres of government for the overall social and economic upliftment of communities in harmony with their local natural environment; to provide for legal matters pertaining to local government; and to provide for matters incidental thereto Local Government: Municipal Property Rates Act, 2004 (Act No. 6 of 2004) The MEC to support municipalities with the process to impose rates on property; to assist municipalities to make provision to implement a transparent and fair system of exemptions, reductions and rebates through their rating policies; to make provision for objections and appeals process and to provide for matters connected therewith Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003) The Act requires of the Department to advise on sound and sustainable management of the financial affairs of municipalities and other institutions in the local sphere of government; and to provide for matters connected therewith. The execution of the provisions of the Act is shared with the Provincial Treasury in as far as functions to be performed by the MEC for local government are concerned Intergovernmental Relations Framework Act No. 13 of 2005 The Act requires of the Department to acknowledge the framework for the three spheres of government, namely national, provincial and local government, to promote and facilitate intergovernmental relations between the three spheres of government, which are distinctive, interdependent and interrelated; to provide mechanisms and procedures to facilitate the settlement on intergovernmental disputes and incidental matters thereto Disaster Management Act No.57 of 2002 Chapter 4 of the Act requires of the Department to take cognisance of provincial disaster management Part I: Provincial Disaster Management Framework: Sec 28 (1) Each province must establish and implement a framework for disaster management in the province aimed at ensuring an integrated and uniform approach to disaster management in the province by all provincial organs of state, provincial statutory functionaries, non-governmental organizations involved in disaster management in the province and by the private sector. (2) A provincial disaster management framework must be consistent with the provisions of this Act and National Disaster Management Framework. (3) (a)a provincial disaster management framework, or any amendment thereto must be published in the provincial gazette. (b) Before establishing or amending a provincial disaster management framework, particulars of the proposed framework or amendment must be published in the relevant provincial gazette for public comment. Part 2: Provincial Disaster Management Centres Establishment Sec 29 (1) Each Province must establish a disaster management centre. (2) A provincial disaster management centre forms part of and functions within the Department Mpumalanga Traditional Leadership and Governance Act No.3 of 2005 The Act requires of the Department to take cognisance and assist to provide for the recognition and withdrawal of recognition of traditional communities; to provide for the establishment and recognition of Traditional Councils; to provide for the recognition and appointment of Traditional Leaders and their removal from office; to provide for the implementation of the Provincial Code of Conduct; and to provide for matters connected therewith. 11 Department of Co-operative Governance and Traditional Affairs...Annual Report

15 Mpumalanga Provincial House and Local Houses of Traditional Leaders Act No.6 of 2005 The Act provides for the establishment and composition of the Mpumalanga Provincial house and Local Houses of Traditional leaders, determine the procedure for the election of members of the Provincial and Local Houses, to provide for the powers and functions of the Mpumalanga Provincial House and Local Houses of Traditional Leaders and to provide for matters incidental thereto Ingoma Act, 2011 (act No.3 of 2011) The Act seeks to regulate the holding of Ingoma or initiation schools and the Act empower the MEC responsible for traditional matters to monitor the holding of Ingoma and further empower the MEC to make regulations on any matter that will ensure the proper implementation of the Act Spatial Planning and Land Use Management Act No 16 of 2013 The Act seeks to serve as the framework for Municipalities in order to ensure effective land use and management, the MEC would have to strengthen monitoring of land use and land management by municipalities including ensuring compliance with Sec 152(2) of the Constitution, which stipulates that A Municipality may make and administer By-laws for the effective administration of the matters which it has the right to administer. Therefore Municipalities in the Province should develop their own Planning By-laws. 7.2 Other legislations that also impact on the Department includes: Traditional Leadership and Governance Framework Act No. 41 of 2003 Regulations for the Election of the 40% Members of Traditional Councils, 2007 Mpumalanga Commissions of Inquiry Act No. 11 of Other enabling legislation of Local Government. Annual Report Department of Co-operative Governance and Traditional Affairs 12

16 8. ORGANISATIONAL STRUCTURE MEC Hon. RM Mtshweni HOD S OFFICE Mr. CM Chunda TRADITIONAL LEAD- ERSHIP COMMISSION 4 X Commissioner (ALL POST FILLED) 2 X ADDITIONAL CFO Mr SEB Matsebula CD: Programme 1 Ms HG Shube CD: Programme 2 Mr SS Kunene CD: Programme 3 Mr S Ngubane CD: Programme 4 Mr HB Magagula CD: Programme 5 Vacant CD: Municipal Infrastructure, Disaster Management & Water Vacant Dir. Risk & Compliance Management Services Vacant 9. ENTITIES REPORTING TO THE MEC There are no entities reporting to the MEC of COGTA. 13 Department of Co-operative Governance and Traditional Affairs...Annual Report

17 PART B PERFORMANCE INFORMATION ANNUAL REPORT Annual Report Department of Co-operative Governance and Traditional Affairs 14

18 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 133 of the Report of the Auditor General, published as Part E: Financial Information. 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE 2.1 Service Delivery Environment The Department does not render services directly to the public, however, it has a responsibility to monitor and support municipalities. The Department has further developed an integrated Municipal Support Plan (IMSP) which was approved by the Executive Council. The IMSP aims to improve service delivery in Municipalities. The Department continued with the construction of water reservoirs to increase additional water storage capacity thus enhancing the provision of water in the three municipalities namely; Mbombela, Bushbuckridge and Nkomazi. These reservoirs were at the final stages of completion by the end of the financial year. The Reservoirs are based in: Mbombela Municipality at Shabalala, Kabokweni, Matsulu and Phola Bushbuckridge Municipality at Casteel, Cunningmore and Thusanong Nkomazi Municipality at Steenbok and Mangweni. The Department supported Emalahleni and Bushbuckridge Municipalities in improving service delivery, financial management, administration and governance by implementing section 139 of the Constitution of the Republic of South Africa. The municipalities have improved in these areas hence the Section 139 was lifted on 31 December 2014 in Bushbuckridge and 31 March 2015 in Emalahleni. In an effort to bring services to the people, the Department managed 22 Thusong Centres within the Province and supported Govan Mbeki Local Municipality to establish Mzinoni Thusong Service Centre during the financial year under review. The Department continued with the provision of support to Traditional Leadership through: Resolving Traditional disputes, claims and Land cases Convening Traditional Leaders Indaba Funding cultural ceremonies and the day to day administration of the Traditional Council offices. 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 standard of service Local Governance Local Municipalities Support 18 local Municipalities District Municipalities on the review and implementation on revenue enhancement Sector Departments system SALGA Development and Planning Traditional Institution Management House of Traditional Leaders Local Municipalities District Municipalities Sector Departments SALGA Traditional Councils Communities Traditional Councils Communities 21 Municipalities with responsive IDPs approved 45 Traditional disputes and claims cases finalized Provincial House Committees and Local Houses functional Desired standard of service 18 Local Municipalities supported on the review and implementation on revenue enhancement system 21 responsive municipal IDPs approved and adopted 45 Traditional disputes and claims cases finalized 5 Provincial House Committees and 3 Local Houses functional Actual achievement 18 Local Municipalities supported on the review and implementation on revenue enhancement system 21 responsive municipal IDPs approved and adopted 46 Traditional disputes and claims cases finalized 5 Provincial House Committees and 3 Local Houses functional Batho Pele arrangements with beneficiaries Current/actual arrangements Desired arrangements Actual achievements Public hearings To get information about service delivery needs Information gathered and community needs identified Meetings (Seminars) To get information about service delivery needs Information sharing and decision making on service delivery issues 15 Department of Co-operative Governance and Traditional Affairs...Annual Report

19 Service Delivery Information Tool Current/ actual information Desired information tools Actual achievements Media (Print and Electronic) To communicate the activities of the department to the public with Communication tools To communicate the activities of the department to the public with Communication tools Departmental Newsletters, Print and Electronic Media Booklets Complaints Mechanism Current / actual complaints mechanism Desired complaints Actual achievements mechanism Written complaints Suggestion Box Suggestion Boxes available at Head Office and Thusong Centres. Departmental Post Box Departmental Post Box in place. Verbal complaints Telephonically Departmental Call Centre established Public hearing Public Hearings conducted through the Committee on Disputes and Claims izimbizo The Department supported Traditional Cultural ceremonies (Ummemo) Awareness Campaigns Floods and Fire Awareness Campaigns conducted through Radio Slots and distribution of Flyers. 2.3 Organisational environment The department continued to implement the approved organizational structure during the financial year under review. Subsequent to the 2014 national elections, the new Member of the Executive Council was deployed to the Department. The Department also appointed a new Accounting Officer after the deployment of the predecessor to National Parliament. The department received an executive directive in terms of Municipal Finance, wherein this function has been transferred to the Department of Finance with effect from October 2014, to enhance support to Municipalities on all financial management aspects. The Department received a new mandate in terms of the Spatial Planning and Land Use Management Act, wherein this function has been transferred from the Department of Agriculture and Land Administration to COGTA, effective from 01 April Key policy developments and legislative changes There were no amendments on legislations and key policy developments that affected the operations of the department in the year under review. 3. STRATEGIC OUTCOME ORIENTED GOALS According to the government priorities as identified by Cabinet, the department has been assigned with Outcome 9: A Responsive, accountable, effective and efficient local government system which has 7 Outputs, as such the Department realigned its strategic goals with the above outcome. Outcome 9 has te achieved through the following outputs linked to the Strategic Goals: OUTPUTS LINKED STRATEGIC GOALS ACHIVEMENTS 1. Implement a differentiated approach to municipal financing, planning. -Effective Integrated Development and Planning. -21 Municipalities with approved responsive IDPs. 2. Access to basic services -Strengthened cooperative and good governance for accountable and sustainable local government systems. -Effective Integrated Development and Planning. 3.Implementation of Community Works Programme 4.Actions supportive of the human settlements outcomes -Effective Integrated Development and Planning -Effective Integrated Development and Planning -The Provincial MIG expenditure stands at 64% at the end of the 2014/15 financial year. -Households with access to water at 96% ( out of ) -Households with access to sanitation at 93.7% ( out of ) -Households with access to electricity at 92% ( out of ) -Households with access to refuse removal at 53.8% ( out of ) -The Department maintained jobs through the Community Works Programme in 14 Municipalities. -18 Cooperatives established through CWP in 14 Functional CWP sites -146 work opportunities created on Youth Waste Management project through the use of the EPWP Incentive Grant. -21 Municipalities supported with the implementation of Spatial Development Frameworks (SDFs) -18 Municipalities supported to prepare for SPLUMA implementation. -18 Local Municipalities were supported on the implementation of Land Use Management Schemes (LUMS). Annual Report Department of Co-operative Governance and Traditional Affairs 16

20 OUTPUTS LINKED STRATEGIC GOALS ACHIVEMENTS 5.Deepen democracy through a refined ward committee model 6.Administrative and financial capability 7.Single window of coordination -Strengthened cooperative and good governance for accountable and sustainable local government systems. -Strengthened cooperative and good governance for accountable and sustainable local government systems. -Strengthened the institutions of traditional leadership for sustainable traditional communities. -Strengthened cooperative and good governance for accountable and sustainable local government systems. -Effective and efficient oversight for sustainable development at traditional communities. -The Department conducted 14 Community Outreaches (izimbizo) through traditional cultural ceremonies, community meetings and radio slots Ward Operational Plans were reviewed, with 10 new ones developed and implemented in 4 Municipalities. The provincial analysis of audit outcomes (2013/14) for municipalities refers as follows: -Two (2) municipalities received clean audits. (Steve Tshwete and Ehlanzeni District) -Five (5) Municipalities received disclaimers (Mkhondo, Emakhazeni, Thaba Chweu, emalahleni and Msukaligwa) -Nine (9) Municipalities with qualified audit outcomes with findings (Gert Sibande District, Chief Albert Luthuli, Dr Pixley Ka Isaka Seme, Victor Khanye, Thembisile, Umjindi, Bushbuckridge, Nkomazi and Dr JS Moroka) -Five (5) Municipalities with unqualified audit outcomes with findings (Nkangala District, Govan Mbeki, Mbombela, Lekwa and Dipaleseng) -The Department rolled out 2 capacity building programme to Municipalities on Supply Chain Management for officials and on MPACs for Councillors. -All 21 Municipalities supported with the development of their Support Plans. -All 21 Municipalities supported to comply with submission of Annual and Oversight Reports. -Supported 21 municipalities on the development of organizational Performance management Systems (OPMS) -Supported the Work of the Mpumalanga Provincial House on Traditional Leadership through the convening of1 Traditional Leaders Indaba and Annual Opening of the House of Traditional Leaders convened. 4. PERFORMANCE INFORMATION BY PROGRAMME 4.1 Programme 1: Administration Purpose of the Programme This programme provides the overall political, strategic and administration support and management to all units and programmes of the Department in terms of Political guidance, Strategic Management, Risk Management, Legal Services, Financial Management, Security Management, Human Resource Management, Transversal Services, Planning and Programme Management and Communication and IT services in accordance with applicable Acts and Policies of the Department. List of Sub-programmes Office of the MEC Corporate Services Strategic objective for the financial year under review To provide political, strategic and administrative guidance and support to all the programmes of the Department. Strategic objectives, performance indicators, planned targets and actual achievements The programme provided political, strategic and administrative guidance and support to all the programmes of the Department. 17 Department of Co-operative Governance and Traditional Affairs...Annual Report

21 Programme Name: ADMINISTRATION Strategic objective To provide political, strategic and administrative guidance and support to all the Programmes of the Department 2013/ Annual Financial Statement compiled 4 Reports on Risk Management compiled Planned Target 1 Annual Financial Statement approved 1 Approved Risk Management Plan 13 HR policies approved HR Oversight Report approved 3 HR Plans approved 2014/15 Annual Performance Plan (APP) approved and submitted 2012/13 Annual Report approved and submitted 4 Reports on implementation of Media Plan compiled 4 Reports on the implementation of Marketing Plan compiled 4 Reports on implementation of Information Technology Plan compiled Annual Performance Plan Approved Annual Performance Report approved Communication and IT Plan approved 1 Annual Financial Statement approved 1 Risk Management Plan approved 4 HR Oversight Reports approved 2015/2016 Annual Performance Plan approved 2013/14 Annual Performance Report approved and submitted Communication and IT Plan approved Deviation from planned target to for Comment on deviations Reasons for deviations There were no deviations made. Performance indicators Programme: Administration Sub-programme: Finance Performance Indicator Annual Financial Statement approved Approved Budget Risk Management Plan approved 2013// Annual Financial Statement compiled 1 Main Budget compiled 4 Reports on Risk Management compiled Planned Target 1 Approved Annual Financial Statement Annual Financial Statement approved 1 Approved Budget 1 Main Budget approved 1 Approved Risk Management Plan Risk Management Plan approved Deviation from planned target to for Comment on deviations Programme: Administration Sub-programme: Human Resource Management Performance Indicator 2013//2014 HR Oversight Report approved Annual Target 13 HR policies approved 4 HR Oversight 3 HR Plans approved Reports 4 HR Oversight Reports approved Deviation from planned target to for Comment on deviations Programme: Administration Sub-programme: Legal Services Performance Indicator 2013//2014 Number of Reports on Legal Services compiled 4 Reports on legal services compiled Annual Target 4 Reports on legal services 4 Reports on legal services compiled Deviation from planned target to for Comment on deviations Annual Report Department of Co-operative Governance and Traditional Affairs 18

22 Programme: Administration Sub-programme: Security Management Performance Indicator 2013//2014 Annual Target Deviation from planned target to for Comment on deviations Number of Reports on Security Management Services compiled 4 Reports on security management services compiled 4 Reports on security management services 4 Reports on security management services compiled Programme: Administration Sub-programme: Planning and Programme Management Performance Indicator 2013//2014 Annual Target Deviation from planned target to for Comment on deviations Annual Performance Plan approved 2014/15 Annual Performance Plan (APP) approved and submitted Annual Performance Plan Approved 2015/2016 Annual Performance Plan approved Annual Performance Report approved 2012/13 Annual Report approved and submitted Annual Performance Report approved 2013/14 Annual Performance Report approved and submitted Programme: Administration Sub-programme: Communication and IT Support Performance Indicator 2013//2014 Annual Target Deviation from planned target to for Comment on deviations Communication and IT Plan approved 4 Reports on implementation of Media Plan compiled 4 Reports on implementation of Marketing Plan compiled 4 Reports on implementation of Technology Plan compiled Communication and IT Plan approved Communication and IT Plan approved and implemented Reasons for deviations There were no deviations made. Strategy to overcome areas of under performance Changes to planned targets There were no changes made on the performance indicators and targets after the tabling and approval of the Annual Performance Plan, however, adjustments to the budget were done. Linking performance with budgets The appropriation for 2014/15 financial year did change significantly from the 2013/14 appropriation. The under spending on Administration is due to lease commitments, fleet services as well as Tele communication expenses. The programme was adequately funded hence all its planned targets for the year under consideration were achieved. Sub-programme expenditure Sub- Programme 2014/ /2014 Name Final Actual (Over)/ Under Final Actual (Over)/ Under Expenditure Expenditure Expenditure Expenditure R 000 R 000 R 000 R 000 R 000 R 000 Office of the MEC Administration Total Department of Co-operative Governance and Traditional Affairs...Annual Report

23 4.2 Programme 2: Local Governance Purpose of the Programme The Programme provides for the implementation of an institutional, administrative, financial and public participation framework. List of the sub-programmes Municipal Administration Municipal Finance Public Participation Capacity Development Municipal Performance Monitoring Reporting and Evaluation Service Delivery Improvement Unit Strategic objectives for the financial year under review Strengthened partnership between provincial, local government, traditional institutions and communities to improve service delivery. To monitor and support municipalities to ensure financially viable and sustainable Municipalities in accordance with applicable Acts. Effective departmental monitoring, evaluation and reporting systems in respect of local government and traditional institutions Strategic objectives, performance indicators, planned targets and actual achievements In order to strengthen partnership between provincial, local government, traditional institutions and communities to improve service delivery, all sector Departments and Traditional Leaders were mobilised to participate in local government processes of Integrated Development planning. Whilst also monitoring and supporting municipalities to improve sound financial management and their Performance management system. Strategic objectives: Programme Name: LOCAL GOVERNANCE Strategic objectives Strengthened partnership between provincial, local government, traditional institutions and communities to improve service delivery. To monitor and support municipalities to ensure financially viable and sustainable Municipalities in accordance with applicable Acts. Effective departmental monitoring, evaluation and reporting systems in respect of local government and traditional institutions 2013/ Reports on the roll out of the approved Generic Municipal By-laws Framework compiled All 21 Municipalities supported with the compilation and implementation of their Audit Action Plans, with special emphasis on the 5 municipalities with 5 disclaimers 4 Reports on progress with Debt Collection compiled 8 Municipalities implemented the revenue enhancement strategies with all municipalities having approved their Draft Budgets and Tariffs 1 Section 47 Report approved 3 District Sessions held to support all 21 Municipalities in the alignment of IDP/ Budget/ SDBIP with OPMS Annual Target 9 Municipalities supported with the approved Generic Municipal By-laws in line with the Framework 21 Municipalities supported to obtain clean audit outcomes 12 Municipalities supported with current debtors more than 50% of own revenue 18 Municipalities supported on the review and implementation on revenue enhancement system 1 Annual Section 47 Provincial Report submitted to Legislature and National Minister Support 21 Municipalities on the development of Organizational Performance Management Systems (OPMS) 18 Municipalities supported with the Approved Generic Municipal By-laws in line with the Framework 21 Municipalities supported to obtain clean audit outcomes Deviation from planned target to for Support with the Approved Generic Municipal By-laws provided to all Local Municipalities. 12 Municipalities with current debtors more than 50% of own revenue supported 18 Municipalities supported on the review and implementation on revenue enhancement system 1 Approved Section 47 Report submitted to National Minister and Legislature 21 Municipalities with Organisational Performance Management System (OPMS) developed Comment on deviations Reasons for deviation Annual Report Department of Co-operative Governance and Traditional Affairs 20

24 Performance indicators Programme: Local Governance Sub-programme: Municipal Administration Performance Indicator Assessment Reports on powers and functions as determined by MDB 2013/ Reports compiled on the review of functions conducted by the MDB Annual Target 4 Assessment reports on powers and functions as determined by MDB 4 Assessment reports on powers and functions as determined by MDB compiled Deviation from planned target to for Comment on deviations Filling of Top Six (6) Municipal Senior Management posts Number of Municipalities assessed on Senior Management Performance Agreement Number of Municipalities compliant with competency criteria as per the MSA Amendment Act Number of Municipal Councils assessed in terms of their performance oversight function Number of functional municipal committees (Oversight and Portfolio Committees) Number of functional TROIKAS in Municipalities 4 Status Quo Reports on the budgeted vacancies in Municipalities compiled 1 Report compiled on signed performance agreements for MMs and other Section 56 & 57 Managers 4 Reports compiled on legislative compliance in all 21 Municipalities 4 Reports on the functionality of Municipal Councils in terms of oversight function (MPACs) 100% (123) of Municipal Senior Management positions filled 21 Municipalities assessed on Senior Management Performance Agreement 21 Municipalities compliant with competency criteria as per the MSA Amendment Act 21 Municipal Councils assessed in terms of their performance oversight function - Municipal Council Committees functional in 21 Municipalities - 21Functional TROI- KAS in Municipalities Not achieved 81% (100 out of 123) Municipal Senior Management positions are filled (22 senior managers posts filled during 2014/15 financial year) 21 Municipalities assessed on the signed Performance Agreement for Senior Managers Not achieved 16 Municipalities compliant with competency criteria as per the MSA Amendment Act 21 Municipal Councils assessed in terms of their performance oversight function Municipal Council Committees functional in 21 Municipalities TROIKAs in 21 Municipalities functional 23 Senior managers positions still vacant due to delays by Municipalities in the recruitment processes 5 Municipalities not complying with MSA Amendment Act (Nkangala, Dr JS Mororka, Lekwa, Msukaligwa and Mbombela) The Department to escalate the progress on the filling of vacant posts to PCF and MUNIMEC for intervention in the 2015/16 financial year The Department to escalate the non-compliance to PCF and MUNIMEC for intervention Number of Municipalities supported to review organogram in line with generic Municipal framework Number of Municipalities supported with the Approved Generic Municipal By-laws in line with the Framework 4 Reports on the roll out of the approved Generic Municipal Organogram Framework compiled 4 Reports on the roll out of the approved Generic Municipal By-laws Framework compiled 9 Municipalities supported to review organogram in line with generic Municipal framework 9 Municipalities supported with the Approved Generic Municipal By-laws in line with the Framework 10 Municipalities supported to review organograms in line with generic Municipal Framework 18 Municipalities supported with the Approved Generic Municipal By-laws in line with the Framework 1 Additional Municipality supported to review organograms in line with generic Municipal Framework All Local Municipalities supported with the approved generic municipal by-laws through a Provincial Summit. Multi support mechanism used to assist 10 Municipalities in the review of their Organogram. Generic municipal by-laws was developed to benefit all local municipalities in the Province Sector Specific Performance Indicator Programme: Local Governance Sub-programme: Municipal Administration Performance Indicator Number of Municipalities supported to reduce incidences / cases of unethical conduct 2013/2014 Annual Target - 21 Municipalities supported to reduce incidences / cases of unethical conduct Deviation from planned target to for 21 Municipalities supported to reduce incidences / cases of unethical conduct by assisting in the development of anti-corruption strategies currently being implemented Comment on deviations 21 Department of Co-operative Governance and Traditional Affairs...Annual Report

25 Programme: Local Governance Sub-programme: Inter Governmental Relations Performance Indicator 2013//2014 Annual Target Deviation from planned target to for Comment on deviations Number of sector departments coordinated on Inter-governmental Relations Framework (IGRF) - All sector departments participating on IDPs All sector departments participating on IDPs Number of Municipalities supported on Inter-governmental Relations Framework (IGRF) Number of Municipalities supported on the readiness of local government elections Number of IGR Forums held 4 Reports on the functionality of Provincial and District IGR structures compiled 4 Reports compiled on the readiness of National and Provincial Elections 18 Municipalities supported on Inter-governmental Relations Framework (IGRF) 18 Municipalities supported on the readiness of local government elections - 3 Technical MUNIMAN forum held 18 Municipalities supported on Inter-governmental Relations Framework (IGRF) 18 Municipalities supported on the readiness of local government elections 3 Technical MUNIMAN Forums conducted - 3 MUNIMEC held 3 MUNIMECs held Programme: Local Governance Sub-programme: Municipal Finance Performance Indicator Number of Municipalities with reviewed and implemented revenue enhancement systems 2013/ Municipalities implemented the revenue enhancement strategies with all municipalities having approved their Draft budgets and tariffs Annual Target 18 Municipalities with reviewed and implemented revenue enhancement systems 18 Municipalities supported on the review and implementation on revenue enhancement system Deviation from planned target to for Comment on deviations Number of Municipalities supported to obtain clean audit outcomes All 21 Municipalities supported with the compilation and implementation of their Audit Action Plans, with special emphasis on the 5 municipalities with disclaimers 21 Municipalities supported to obtain clean audit outcomes 21 Municipalities supported to obtain clean audit outcomes Number of Municipalities supported to improve sound financial management Number of municipal councils that tabled, adopt and approve budgets within specified time-frames Number of municipalities allocating 8% of budget for maintenance as per the O&M plans in IDP Number of Municipalities supported with functional anti-corruption systems - 12 Municipalities supported to improve sound financial management - 21 Municipal councils that tabled, adopt and approve budgets within specified time-frames 4 Reports compiled on spending by Municipalities on repairs and maintenance, OPEX and CAPEX 18 Municipalities allocating 8% of budget for maintenance as per the O&M plans in IDP - 21 Municipalities supported with functional anti-corruption systems 18 Local Municipalities supported to improve sound financial management 21 Municipal councils, tabled, adopted and approved 2014/15 budgets within specified timeframes 18 Municipalities allocating 8% of budget for maintenance as per the O&M plans in IDP 21 Municipalities supported with functional anti-corruption systems 6 Additional local municipalities supported to improve sound financial management All 18 Local Municipalities assessed on financial management and support provided to all. Annual Report Department of Co-operative Governance and Traditional Affairs 22

26 Sector Specific Indicators Programme: Local Governance Sub-programme: Municipal Finance Performance Indicator Number of Municipalities overspending on OPEX 2013// Reports compiled on spending by Municipalities on OPEX Annual Target 18 Municipalities overspending on OPEX Not 2 municipalities overspending on OPEX 16 municipalities are under spending on OPEX Deviation from planned target to for 2 municipalities overspending on OPEX Comment on deviations Provincial Treasury to monitor the spending of OPEX Number of Municipalities underspending on CAPEX Number of Municipalities with current debtors more than 50% of own revenue supported 4 Reports compiled on spending by Municipalities on CAPEX 4 Reports on progress with Debt collection compiled 18 Municipalities underspending on CAPEX 12 Municipalities with current debtors more than 50% of own revenue supported Not 13 Municipalities are underspending on CAPEX 12 Municipalities with current debtors more than 50% of own revenue supported 13 Municipalities are under spending on CAPEX Municipalities accelerate capital spending in line with the approved SDBIP s Programme: Local Governance Sub-programme: Public Participation Performance Indicator Number of community outreach (Izimbizo/ Radio slots) conducted 2013/2014 Annual Target - 9 community outreach (Izimbizo/ Radio slots) conducted 14 Community Outreach (izimbizo / Radio Slots) done Deviation from planned target to for Additional 5 Community Outreaches (izimbizo / Radio slots) Comment on deviations More community outreaches conducted within the same budget Number of Municipalities supported on the functionality of Ward Committees Number of wards supported on service Delivery Improvement Number of Municipalities with ward operational plans developed, implemented and reviewed 4 Provincial Reports on the functionality of Ward Committees compiled 1 Framework for Ward Committees developed and customized in 16 Municipalities (16 Municipalities are implementing the Framework on the funding of Ward Committees 402 Ward Based Profiles compiled 18 Municipalities supported on the functionality of Ward Committees 402 wards supported on service Delivery Improvement 392 Ward operational plans reviewed 10 Ward operational plans developed and implemented 18 Municipalities supported on the functionality of Ward Committees 402 wards supported on service Delivery Improvement 392 Ward operational plans reviewed 10 Ward operational plans developed and implemented Number of Municipalities conducting public awareness on projects and delivery information 4 Reports on Provincial CDW Programme compiled 18 Municipalities conducting public awareness on projects and delivery information 18 Municipalities conducting public awareness on projects and delivery information 23 Department of Co-operative Governance and Traditional Affairs...Annual Report

27 Programme: Local Governance Sub-programme: Capacity Development Performance Indicator Actual Achievement 2013//2014 Annual Target Deviation from planned target to for Comment on deviations Number of training programmes for Municipal officials and councillors 3 Capacity Development Programmes rolled out in Municipalities 2 Training programmes for Municipal officials and councillors 2 Training programmes for Municipal officials and councillors on Supply Chain Management (SCM) and Municipal Public Accounts Committees (MPACs) conducted Number of Municipalities supported with integrated capacity building plans - 6 Municipalities supported with integrated capacity building plans 6 Municipalities supported with development of integrated capacity building plans (Thaba Chweu; Bushbuckridge; Mkhondo; Dr JS Moroka; Msukaligwa and Thembisile Hani) Number of Municipal support plans developed and implemented to improve administrative and management practices - 21 Municipal support plans developed and implemented to improve administrative and management practices Jointly with Provincial Treasury supported 21 Municipalities with the development and implementation of Support Plans to improve administrative and management practices Number of Municipalities supported with WSP s - 21 Municipalities supported with WSP s 21 Municipalities supported with compilation and submission of WSP s to LGSETA Number of Municipalities capacitated on scarce and critical skills - 21 Municipalities capacitated on scarce and critical skills Not Only 3 municipalities capacitated on scarce and critical skills. (Steve Tshwete, Lekwa and emalahleni) Continuation of capacity training on scarce and critical skills in the 29015/16 financial year. Number of Municipalities with recruitment and retention strategy developed and implemented - 21 Municipalities with recruitment and retention strategy developed and implemented 21 Municipalities with developed and implemented recruitment and retention strategy Programme: Local Governance Sub-programme: Municipal Performance Monitoring Reporting and Evaluation Performance Indicator 2013//2014 Annual Target Number of monitoring reports on the implementation of the support plans 4 Reports compiled on interventions at Emalahleni, Thaba Chweu, Bushbuckridge and Msukaligwa Local Municipalities 4 Monitoring Reports on the implementation of the support plans 4 Monitoring Reports on the implementation of the support plans compiled Deviation from planned target to for Comment on deviations Number of Municipalities complying with submission of annual and oversight reports 2 District Performance Review Session conducted (Nkangala and Gert Sibande Districts) 21 Municipalities complying with submission of annual and oversight reports 21 Municipalities complied with the submission of annual and oversight reports Number of Municipalities monitored on legislative compliance 4 Reports compiled on legislative compliance 21 Municipalities monitored on legislative compliance 21 Municipalities monitored on legislative compliance Number of District Municipalities assisted with support plans 3 District Sessions held to support all 21 Municipalities in the alignment of IDP / Budgets / SDBIP 3 District Municipalities assisted with support plans 3 District Municipalities assisted with support plans Annual Report Department of Co-operative Governance and Traditional Affairs 24

28 Programme: Local Governance Sub-programme: Municipal Performance Monitoring Reporting and Evaluation Performance Indicator 2013//2014 Annual Target Number of Municipalities with Organisational Performance Management System (OPMS) developed Number of monitoring and reporting systems established in municipalities 21 Municipalities assessed on the alignment of SDBIP to Performance Agreements for Municipal Managers and Section 57 Managers 21 Municipalities with Organisational Performance Management System (OPMS) developed 1 Training provided 1 System Monitoring and reporting systems established in municipalities 21 Municipalities with Organisational Performance Management System (OPMS) developed 1 Monitoring and reporting system established in municipalities Deviation from planned target to for Comment on deviations Sector Specific Indicators Programme: Local Governance Sub-programme: Municipal Performance Monitoring Reporting and Evaluation Performance Indicator 2013//2014 Annual Target Number of Municipalities with functional Performance Management Systems (PMS) Annual Section 47 Provincial Report submitted to Legislature and National Minister - 21 Municipalities with functional Performance Management System (PMS) 1 Section 47 Report approved Approved Section 47 report submitted to Legislature and National Minister 21 Municipalities with functional Performance Management System (PMS) 1 Approved Section 47 Report submitted to National Minister and Legislature Deviation from planned target to Actual Achievement for Comment on deviations Programme: Local Governance Sub-programme: Service Delivery Improvement Unit (Provincial Priority) Performance Indicator 2013//2014 Annual Target Report on the facilitation of access strategy on service delivery to communities Institutionalization of Batho Pele in 5 Municipalities 4 Reports compiled on the establishment of 2 TSCs (Mashishing and emzinoni) 4 Reports compiled on the coordination of Mobile Unit Outreach Programmes Batho Pele institutionalized in 5 Municipalities (Msukaligwa, Dr JS Moroka, Thembisile Hani, Nkomazi and Emakhazeni) Establishment of 1 TSC 4 District Outreach Programmes facilitated 5 Municipalities institutionalized with Batho Pele 1 TSC established (Adelaide Tambo Thusong Service Centre in Steve Tshwete Local Municipality) 4 Outreach Programmes facilitated in the 3 Districts Deviation from planned target to for Comment on deviations Reasons for deviations 23 Senior managers positions still vacant due to delays by Municipalities in the recruitment processes. Multi support mechanism used to assist 10 Municipalities in the review of their Organogram. 5 Municipalities not complying with MSA Amendment Act (Nkangala, Dr JS Mororka, Lekwa, Msukaligwa and Mbombela). 6 Additional local municipalities supported to improve sound financial management. All 18 Local Municipalities assessed on financial management and support provided to all. 2 municipalities overspending on OPEX 13 Municipalities are under spending on CAPEX. Additional 5 Community Outreaches (izimbizo / Radio slots) Municipalities did not respond on the invitations sent to them for the capacity training on scarce and critical skills. 25 Department of Co-operative Governance and Traditional Affairs...Annual Report

29 Strategy to overcome areas of under performance The Department will escalate the progress on the filling of vacant posts to PCF and MUNIMEC for intervention in the 2015/16 financial year. The Department will escalate the non-compliance to PCF and MUNIMEC for intervention in the 2015/16 financial year. Provincial Treasury to monitor the spending of OPEX Municipalities accelerate capital spending in line with the approved SDBIP s. The Department will escalate the matter to CFO s Forum for intervention. Continuation of capacity training on scarce and critical skills in the 2015/16 financial year. Changes to planned targets There were no changes made on the performance indicators and targets after the tabling and approval of the Annual Performance Plan, however, adjustments to the budget were done. Linking performance with budgets Main appropriation for 2014/15 was increased by 5.4 per cent from R million in 2013/14 to R million. The high spending in municipal finance and Public Participation is as a result of Section 139 municipal intervention and Community development workers who were not properly funded respectively. Sub-programme expenditure Sub- Programme Name 2013/2014 Final Actual Expenditure (Over) / Under Expenditure Final Actual Expenditure (Over)/ Under Expenditure R 000 R 000 R 000 R 000 R 000 R 000 Office Support Municipal Administration Municipal Finance (298) Public Participation (13) Capacity Development Municipal Performance (33) Reporting and Evaluation Total Programme 3: Development and Planning Purpose of the Programme The Programme facilitates and support integrated spatial development planning at provincial level and within Municipalities. List of the sub-programmes Strategy Development, Research, Policy and Planning (IDP Coordination) Spatial Planning Land Use Management Local Economic Development Municipal Infrastructure Disaster Management Strategic objectives for the financial year under review Effective support to local government and Traditional institutions for integrated development plan. To ensure that Municipalities meet the basic service needs of communities. To ensure the effective use of rural and urban land Coordinate the implementation of Disaster Management Act in the province. Strategic objectives, performance indicators, planned targets and actual achievements In order to provide Effective support to local government and Traditional institutions for integrated development plan the Department has facilitated the development of 21 municipal Integrated Development Plans. Monitored and supported municipalities on the registration of MIG funded projects and assisted municipalities in the development of Infrastructure master plans and provided support on the refurbishment of water and sanitation infrastructure in order to ensure that Municipalities meet the basic service needs of communities Annual Report Department of Co-operative Governance and Traditional Affairs 26

30 The Department has supported all 21 municipalities to implement Disaster master plans in order to for municipalities to implement Disaster Management Act in the province. Strategic objectives: Programme Name: DEVELOPMENT AND PLANNING Strategic objectives 2013/2014 Annual Target Effective support to local government and traditional institutions for integrated development plan 21 Municipal IDPs adopted and 18 Municipal IDP Process Plans analyzed 2 Reports compiled on Provincial IDP Analysis (Analysis Phase and Strategy Phase) 21 Municipalities with responsive IDPs approved Assessment report on the alignment of SDBIP to approved IDPs, PMS and Budget 21 Municipalities with responsive IDPs approved 2 Assessment reports on the alignment of SDBIP to approved IDPs, PMS and Budget compiled Deviation from planned target to for Comment on deviations 21 Municipalities supported with the implementation of SDFs 21 Municipalities implementing SDF 21 Municipalities implementing SDF s 21 Evaluation Reports on the implementation of planning legislation / policies compiled 18 Municipalities implementing planning legislations / policies 18 Local Municipalities implementing planning legislation / policy (Land Use Management By-laws) 18 Municipal LUMS implementation report compiled 18 Municipalities implementing LUMS 18 Municipalities implementing LUMS To ensure that Municipalities meet the basic service needs of communities jobs maintained through CWP in the 13 identified municipalities throughout the Province work opportunities maintained through CWP jobs maintained through CWP 13 additional jobs maintained Recruitment of new participants on site done in order to meet the CWP Participation target 4 Reports on the municipalities supported with the development of LED Strategies compiled 4 Municipalities with existing LED strategy 4 Municipalities with existing LED strategies (Nkangala District; Steve Tshwete; Lekwa and Govan Mbeki) Title Deeds handed to beneficiaries Not achieved Contracts terminated due to time laps Legal intervention requested and new tenders prepared for advertisement and service providers will be appointed in the 2015/16 financial year surveys services rendered 137 Survey services rendered 7 additional survey services rendered. Coordinate the implementation of Disaster Management Act in the Province 4 Reports on the Fire Services Capacity Assessment in 8 municipalities compiled (Bushbuckridge, Chief Albert Luthuli, Govan Mbeki, Emakhazeni, Nkomazi, Mkhondo, Victor Khanye and Steve Tshwete) 18 Municipalities with fire risks assessments 18 Municipalities with fire risks assessments Reasons for deviation Recruitment of new participants on site done in order to meet the CWP Participation target 3000 Title Deeds not handed over to beneficiaries due to the termination of contracts due to time lapse. 27 Department of Co-operative Governance and Traditional Affairs...Annual Report

31 Performance indicators Programme: Development and Planning Sub-programme: Strategy Development, Research Policy and Planning (IDP Coordination) Performance Indicator 2013/2014 Annual Target Deviation from planned target to for Comment on deviations Number of Municipalities with responsive IDPs approved 21 Municipal IDPs adopted and 18 Municipal IDP Process plans analyzed 21 Municipalities with responsive IDPs approved 21 Municipalities with responsive IDPs approved Assessment report on the alignment of SDBIP to approved IDPs, PMS and Budget 3 Assessment Reports on the implementation of the approved IDPs capital projects compiled (Water, Sanitation, Electricity, Roads, Waste Removal and Integrated Human Settlement of Ehlanzeni, Gert Sibande and Nkangala District) 2 Assessment reports on the alignment of SD- BIP to approved IDPs, PMS and Budget 2 Assessment reports on the alignment of SDBIP to approved IDPs, PMS and Budget compiled Annual IDP performance review 2 Reports compiled on Provincial IDP Analysis (Analysis Phase and Strategy Phase) 1 Annual IDP performance review 1 Annual IDP performance review conducted Programme: Development and Planning Sub-programme: Spatial Planning Performance Indicator 2013/2014 Annual Target Deviation from planned target to for Comment on deviations Number of Municipalities implementing SDF s 21 Municipalities supported with the implementation of SDFs 21 Municipalities implementing SDF s 21 Municipalities implementing SDF s Number of Municipalities supported on GIS spatial referencing - 21 Municipalities supported on GIS spatial referencing 21 Municipalities supported on GIS spatial referencing Number of Municipalities supported with Municipal development proposals - 7 Municipalities supported with Municipal development proposals 7 Municipalities supported with Municipal development proposals (Mkhondo; Pixley Ka Isaka Seme; Bushbuckridge; Thembisile Hani; Dr JS Moroka;Steve Tshwete and Thaba Chweu) Number of Municipalities in compliance with SPLUMA - 18 Municipalities implementing SPLUMA Not achieved 18 Municipalities supported to prepare for SPLUMA implementation SPLUMA did not come into operation on the 1 st September 2014 as anticipated, with the new anticipated date of operation to be the 1 st July Number of Municipalities with rural development chapter in IDP s & SDF s - 18 Municipalities with rural development chapter in IDP s & SDF s 18 Municipalities with rural development chapter in IDP s & SDF s Functional Provincial Spatial Working Group - 4 Functional Provincial Spatial Working Group 4 Functional Provincial Spatial Working Group Number of development applications comply with policy frameworks - 70 Development applications complied with policy frameworks 166 Development applications complied with policy frameworks 83 Additional Development applications More Development applications were received and processed Annual Report Department of Co-operative Governance and Traditional Affairs 28

32 Programme: Development and Planning Sub-programme: Spatial Planning Performance Indicator 2013/2014 Annual Target Deviation from planned target to for Comment on deviations Number of Title Deeds handed to beneficiaries erven at milestone 7,8 Not achieved Contracts terminated due to time laps Legal intervention requested and new tenders prepared for advertisement and service providers will be appointed in the 2015/16 financial year. Number of erven created through town Establishment Projects erven at milestone 3,4 Not achieved Milestone 3 finalized Delay in the finalization of milestone 3 which affected the completion of milestone 4. The remaining phases of the project will be completed in 2015/16 financial year. Number of plans for Agri-villages developed - 7 Plans for Agri-villages developed 9 Plans for Agri-villages developed at villages of Mkhondo Local Municipality (ethandukukhanya; Athalia; Speenkoppies; Riverside; New Plaas; Sluis; Hartebeest Mdukazane; Watersmeet and Glen Eland. 2 additional plans developed 9 applications on the development of plans received. Number of survey services rendered Survey services rendered 137 Survey services rendered 7 Additional survey services rendered More request received Number of Municipalities supported with township establishments - 6 Municipalities supported with township establishments 6 Municipalities supported with township establishments (Thembisile Hani; Dr JS Moroka; Govan Mbeki; emalahleni; Nkomazi and Thaba Chweu) Programme: Development and Planning Sub-programme: Land Use Management Performance Indicator 2013/2014 Annual Target Deviation from planned target to for Comment on deviations Number of land use applications processed 4 Technical Evaluation Reports on Land Development applications compiled 90 Land use applications processed 174 land use applications processed 84 additional applications processed More requests were received Number of Hearings conducted by Mpumalanga Townships Board frameworks - 12 Hearings conducted by Mpumalanga Townships Board frameworks Not achieved 6 Hearings conducted by Mpumalanga Townships Board frameworks 6 Hearings not conducted due to budget reprioritization in the Department Department will budget appropriately in the 2015/16 financial year for the Township Board to sit as per the plan. Number of Municipalities implementing planning legislation / policies - 18 Local Municipalities implementing Land Use Management By-Laws 18 Local Municipalities implementing Land Use Management By-Laws Number of Municipalities implementing LUMS 18 Municipal LUMS implementation reports compiled 18 Municipalities implementing LUMS 18 Municipalities implementing LUMS 29 Department of Co-operative Governance and Traditional Affairs...Annual Report

33 Programme: Development and Planning Sub-programme: Local Economic Development Performance Indicator 2013/2014 Annual Target Deviation from planned target to for Comment on deviations Number of CWP sites with upscaled number of participants of CWP sites with up-scaled number of participants 2000 of CWP sites with up-scaled number of participants Number of CWP sites functionally effective - 14 CWP sites 14 CWP sites functionally active based on the site management monitoring tool Number of LED stakeholder forums functional 4 Monitoring reports on the functionality of LED Forums in Municipalities 21 LED stakeholder forums functional 21 Municipal LED stakeholder forums functional Number of work opportunities maintained through CWP Jobs maintained through CWP in the 13 identified municipalities throughout the Province work opportunities maintained through CWP jobs maintained through CWP 13 Additional jobs maintained Recruitment of new participants on site done in order to meet the CWP Participation target Number of work opportunities created through waste management work opportunities created through waste management 146 jobs created on youth waste management programme project through the use of EPWP incentive grant 46 additional jobs created The additional 46 participants assisted in the achievement of the work days target as per public works incentive grant conditions, and the budget catered for the additional participants Number of work opportunities maintained through waste management work opportunities maintained through waste management (1 st Quarter only) 530 work opportunities maintained through waste management (1 st Quarter only) work opportunities maintained through waste management (2nd Quarter going forward) 100 work opportunities maintained through waste management (2 nd 4 th Quarters) Number of co-operatives established through CWP per site - 1 Co-operatives established in 14 CWP sites 14 Cooperatives established through CWP Sector Specific Indicator Programme: Development and Planning Sub-programme: Local Economic Development Performance Indicator 2013/2014 Annual Target Deviation from planned target to for Comment on deviations Number of Municipalities with existing LED strategies 4 Reports on the municipalities supported with the development of LED strategies compiled 4 Municipalities with existing LED strategies 4 Municipalities with existing LED strategies (Nkangala District; Steve Tshwete; Lekwa and Govan Mbeki) Annual Report Department of Co-operative Governance and Traditional Affairs 30

34 Programme: Development and Planning Sub-programme: Municipal Infrastructure Performance Indicator Number of Municipalities with infrastructure master plans approved Number of Municipalities with 100% registered projects of MIG allocation Number of MIG PMU performance evaluated in Municipalities Number of Municipalities with licensed disposal sites 2013/ Reports on support provided to municipalities on Infrastructure planning compiled Annual Target 8 Municipalities with Infrastructure Master Plans approved - 18 Municipalities with 100% registered projects of MIG allocation 4 Reports on the implementation of MIG Programme compiled 18 MIG PMU performance evaluated in Municipalities - 18 Municipalities with licensed disposal sites 10 Municipalities with Infrastructure Master Plans approved (Pixley Ka Isaka Seme; Mkhondo; Dipaleseng; Lekwa; Dr JS Moroka; Thembisile Hani; emalahleni; Thsbs Chweu; Bushbuckridge and Nkomazi) 18 Municipalities with 100% registered projects of MIG allocation 18 MIG PMU performance evaluated in Municipalities 18 Municipalities with licensed disposal sites Deviation from planned target to for 2 additional municipalities with Infrastructure Master Plans Comment on deviations Late reprioritization of emalahleni and Nkomazi Municipalities for support on the development of Master Plans on Electricity and Roads Number of Municipalities with water services acceleration plans developed and implemented - 18 Municipalities with water services acceleration plans developed and implemented 18 Municipalities with developed and implemented acceleration plans for water services Number of Municipalities with refurbished water and sanitation infrastructure - 18 Municipalities with refurbished water and sanitation infrastructure 18 Municipalities with refurbished water and sanitation infrastructure Sector Specific Indicators Programme: Development and Planning Sub-programme: Municipal Infrastructure Performance Indicator 2013/2014 Annual Target Deviation from planned target to for Comment on deviations Number of households with access to Water (94,5%) households with access to water 100% of households with access to water Not achieved 96% ( out of ) of households with access to water The target for the universal access to was extended to December 2015 as results of delays in appointment of service providers by municipalities Fast track implementation of universal access to water which is extended to December 2015 by Rand Water. Number of households with access to Electricity (89,7%) households with access to electricity 95% of households with access to Electricity Not achieved 92% ( out of ) of households have access to electricity Delays on appointment of service providers in 6 Local Municipalities led to the delays in the project execution. (Bushbuckridge; Thaba Chweu; Nkomazi; Mkhondo; Umjindi; Mbombela) Working with District Municipalities, Eskom and Department of Energy to assist Local Municipalities technically on the implementation of the projects. Number of households with access to Sanitation (95%) households with access to sanitation 100% of households with access to Sanitation Not achieved 93.7% ( out of ) of households have access to sanitation Delays due to change of focus to universal access to water supply and the discontinuation of VIP toilets by the Province Working to explore new sanitation technologies to increase access. Number of households with access to Waste Removal (50%) households with access to refuse removal 70% of households with access to Waste Removal Not achieved 53.8% ( out of of households with access to Waste Removal Non-collection of Waste mostly in rural areas Up-scaling of the Youth Waste Programme and CWP to increase waste collection in rural areas. 31 Department of Co-operative Governance and Traditional Affairs...Annual Report

35 Programme: Development and Planning Sub-programme: Disaster Management Performance Indicator Number of Municipalities implementing Disaster Management plan Number of Municipalities with risk reduction campaigns Number of Municipalities with fire risks assessments Fire service unit established in the department Number of rapid responses rendered in the province 2013/ Reports on the implementation of the Provincial Disaster management Frameworks and Act compiled 12 Risk Reduction Campaigns conducted 4 Reports on the Fire Services Capacity Assessment in 8 Municipalities compiled Annual Target 21 Municipalities implementing disaster management plan 18 Municipalities with risk reduction campaigns 18 Municipalities with fire risks assessments - Fire service unit established in the department 4 Reports on support provided to Disaster Stakeholders compiled 100% rapid responses rendered in the province 21 Municipalities implementing disaster management plan 18 Awareness campaigns conducted in 18 Local Municipalities 18 Municipalities with fire risks assessments Fire service unit established in the department 100% rapid responses rendered in the province (Disaster incidents and rehabilitation and support provided to Provincial major events) Deviation from planned target to for Comment on deviations Reasons for deviations 18 Municipalities supported to prepare for SPLUMA implementation Title Deeds not handed over to beneficiaries due to the termination of contracts due to time lapse. Delays in the finalization of milestones 3 and 4 affected the completion of 2000 ervern township establishment project. 6 Hearings not conducted due to budget reprioritization in the Department More Development applications were received and processed Recruitment of new participants on site done in order to meet the CWP Participation target The additional 46 participants assisted in the achievement of the work days target as per public works incentive grant conditions, and the budget catered for the additional participants The target for the universal access to was extended to December 2015 as results of delays in appointment of service providers by municipalities Delays on appointment of service providers in 6 Local Municipalities led to the delays in the electricity project execution. (Bushbuckridge; Thaba Chweu; Nkomazi; Mkhondo; Umjindi; Mbombela) Delays on households access to sanitation due to change of focus to universal access to water supply and the discontinuation of VIP toilets by the Province. Non-collection of Waste mostly in rural areas Strategy to overcome areas of under performance SPLUMA did not come into operation on the 1 st September 2014 as anticipated, with the new anticipated date of operation to be the 1 st July 2015 Legal intervention requested and new tenders prepared for advertisement and service providers will be appointed in the 2015/16 financial year The remaining phases of the 2000 erven township establishment project will be completed in 2015/16 financial year. Department will budget appropriately in the 2015/16 financial year for the Township Board to sit as per the plan. The Department to continue to fast track implementation of universal access to water which is extended to December 2015 by Rand Water. Working with District Municipalities, Eskom and Department of Energy to assist Local Municipalities technically on the implementation of the projects. Working to explore new sanitation technologies to increase access Upscaling of the Youth Waste Programme and CWP to increase waste collection in rural areas Changes to planned targets There were no changes made on the performance indicators and targets after the tabling and approval of the Annual Performance Plan, however, adjustments to the budget were done. Annual Report Department of Co-operative Governance and Traditional Affairs 32

36 Linking performance with budgets Main appropriation for this programme has increased by 30.9 per cent from R million in 2013/14 to R million in 2014/15 financial years. The increase was due to a once off allocation for Disaster Relief Material and the capital allocation for the completion of Water reservoir projects as well as the construction of Offices for Traditional councils. The Under spending on Municipal infrastructure is attributable to late commencement of construction of offices and retention fees for the Water reservoirs. A roll over will be requested in this regard. Sub-programme expenditure Sub- Programme Name 2013/2014 Final Actual Expenditure (Over) / Under Expenditure Final Actual Expenditure (Over) / Under Expenditure R 000 R 000 R 000 R 000 R 000 R 000 Office Support Strategy Development, Research and Policy (IDP) Spatial Planning Land Use Management Local Economic Development Municipal Infrastructure Disaster Management (248) Total Programme 4: Traditional Institution Management Purpose of the Programme The Programme support, strengthen and capacitate the developmental capacity and capability of Traditional Councils to accelerate rural development. List of the sub-programmes Traditional Institutional Administration Traditional Resource Administration Rural Development Facilitation Traditional Land Administration Strategic objectives for the financial year under review Effective administration and functioning of Traditional Leadership institutions. To strengthen the institutions of Traditional Leadership to fulfil their mandate. Strategic objectives, performance indicators, planned targets and actual achievements To ensure effective administration and functioning of Traditional Leadership institutions, the Department supported Traditional Councils financially in order to strengthen them to fulfil their mandate. Strategic objectives: Programme Name: TRADITIONAL INSTITUTION MANAGEMENT Strategic objectives 2013/2014 Annual Target Effective administration and functioning of Traditional Leadership Institutions To strengthen the institutions of Traditional Leadership to fulfil their mandate 4 Traditional Council Offices supported with infrastructure development (ebutsini, Mpisikazi, Lomshiyo and Mnisi) 4 Traditional Council Offices constructed - 2 Kings Royal Palaces refurbished 61 Traditional Disputes and Claims cases finalized 21 Traditional Land Cases resolved 1 Generic guideline on the development of Traditional Council policies developed 45 Traditional Disputes and Claims cases finalized 12 Traditional Land Cases resolved 1 Tool of trade provided to Traditional Councils Not achieved 2 Kings Royal Palaces refurbished 46 Traditional disputes and claims cases finalised 17 Traditional land cases resolved Not achieved Deviation from planned target to Actual Achievement for Delays on the appointment of service providers for the construction of 4 Traditional Councils 1 additional dispute and claim case 5 additional land cases resolved Reprioritization of Departments Budget Comment on deviations Construction of 4 Traditional Council Offices will be completed in the 2015/16 financial year. 2 applications from Mogane NS and Kgarudi Tribal claiming over the same land issue More land cases received and resolved Tool of trade will be provided in the 2015/15 financial year 33 Department of Co-operative Governance and Traditional Affairs...Annual Report

37 Reasons for deviations Delays on the appointment of service providers for the construction of 4 Traditional Councils Reprioritization of Departments Budget compromised the provision of 1 Tool of trade to Traditional Councils. An additional dispute and claim case was due to 2 applications from Mogane NS and Kgarudi Tribal claiming over the same land issue More land cases received and resolved Performance indicators Programme: Traditional Institution Management Sub-programme: Traditional Institutional Administration Performance Indicator 2013/2014 Annual Target Number of Traditional Councils with functional administration Number of Kings Council with functional administration Number of Traditional Leadership claims and successions investigated 58 Traditional Councils functional 58 Traditional Councils functional - 2 Kings Council 4 Report on successions on Traditional Leadership compiled 100% claims and successions investigated 58 Traditional Councils with functional administrations 2 Kings Councils with functional administrations 100% claims and successions investigated (Giba and Mokangwe) Deviation from planned target to for Comment on deviations Programme: Traditional Institution Management Sub-programme: Traditional Resource Administration Performance Indicator 2013/2014 Annual Target Number of tools of trade provided to Traditional Councils Number of Capacity building programmes implemented for Traditional Councils 1 Generic guideline on the development of traditional Council Policies developed 3 Training Programmes on Conflict Management, Records Management and Human Trafficking conducted for Traditional Leaders in the 3 Districts 1 Tool of trade provided to Traditional Councils 3 Training programmes implemented for Traditional Councils (Financial Operating and Control System; Traditional Protocol and Etiquettes; Land Use Management) Not achieved 3 Training programmes implemented for Traditional Councils in the 3 Districts (Financial Management and Control System; Leadership Protocol and Etiquettes; Land Use Management) Deviation from planned target to for Reprioritization of Departments Budget Comment on deviations Tool of trade will be provided in the 2015/16 financial year Programme: Traditional Institution Management Sub-programme: Rural Development Facilitation Performance Indicator 2013/2014 Annual Target Number of Traditional Councils participating in IDPs 4 Reports on Traditional Leaders participating in municipal councils compiled 60 TCs participating in IDPs 60 TCs participating in IDPs Deviation from planned target to for Comment on deviations Number of Traditional Councils reconstituted Number of District Traditional Leaders participating in Municipal Council s Number of Traditional Councils offices constructed Number of Kings Royal Palace refurbished - 40 Traditional Councils reconstituted 4 Reports on Traditional Leaders participating in municipal councils compiled 4 Traditional Council Offices supported for infrastructure development (ebutsini, Mpisikazi, Lomshiyo and Mnisi) All 3 District Traditional Leaders participating in Municipal Councils 4 Traditional Council Offices constructed - 2 Kings Royal Palaces Not achieved Traditional Councils not yet reconstituted All 3 District Traditional Leaders participating in Municipal Councils Not achieved Not achieved Draft Regulations for the reconstitution of Traditional Councils not finalized and the formula for the election of 40 and 60 percentages not yet consulted and the President of the Republic has not yet proclaimed. Delays on the appointment of service providers for the construction of 4 Traditional Councils Budget constraints on the refurbishement of 2 Kings Palaces Reconstitution of all Traditional Councils will be finalized in the 2015/16 financial year Construction of 4 Traditional Council Offices will be completed in the 2015/16 financial year. The Department will continuously support the KIngs Annual Report Department of Co-operative Governance and Traditional Affairs 34

38 Programme: Traditional Institution Management Sub-programme: Traditional Land Administration Performance Indicator 2013/2014 Annual Target Deviation from planned target to for Comment on deviations Number of Traditional disputes and claims cases finalised 61 Traditional Disputes and Claims cases finalized 45 Traditional disputes and claims cases finalised 46 Traditional disputes and claims cases finalised 1 Additional dispute and claim case finalized 2 Applications from Mogane NS and Kgarudi Tribal claiming over the same land issue Number of Traditional land cases resolved 21 Traditional Land Cases resolved 12 Traditional land cases resolved 17 Traditional land cases resolved 5 additional land cases resolved More land cases received and resolved Reasons for deviations Reprioritization of Departments Budget compromised the provision of 1 Tool of trade to Traditional Councils. Draft Regulations for the reconstitution of Traditional Councils not finalized and the formula for the election of 40 and 60 percentages not yet consulted and the President of the Republic has not yet proclaimed. Delays on the appointment of service providers for the construction of 4 Traditional Councils An additional dispute and claim case finalized due to 2 applications received from Mogane NS and Kgarudi Tribal claiming over the same land issue More land cases received and resolved Budget contraints on the refurbishment of 2 Kings Palaces. Strategy to overcome areas of under performance Tool of trade for Traditional Councils will be provided in the 2015/16 financial year. Reconstitution of all Traditional Councils will be finalized in the 2015/16 financial year. Construction of 4 Traditional Council Offices will be completed in the 2015/16 financial year. The Department will continuously support the KIngs. Changes to planned targets There were no changes made on the performance indicators and targets after the tabling and approval of the Annual Performance Plan, however, adjustments to the budget were done. Linking performance with budgets Main appropriation for the programme has increased marginally in 2014/15 financial year. The programme under spent marginally due to non-requisition of transfers by traditional councils. Sub-programme expenditure Sub- Programme Name 2013/2014 Final Actual (Over) / Under Expenditure Final Actual Expenditure Expenditure (Over) / Under Expenditure R 000 R 000 R 000 R 000 R 000 R 000 Administration Traditional Institution Administration Traditional Resource Administration Rural Development Facilitation Traditional Land Administration Total Department of Co-operative Governance and Traditional Affairs...Annual Report

39 4.5. Programme 5: House of Traditional Leaders Purpose of the Programme The Mpumalanga House of Traditional Leaders (MPHTL) is in essence a statutory body established to advice the Provincial and Local Spheres of Government on any piece of legislations that has a bearing of Traditional Councils, customary law, Traditions and customs as they relate to Traditional Communities in South Africa. List of the sub-programmes Administration of the House of Traditional Leaders Committees and Local Houses Strategic objective for the financial year under review To exercise oversight and participate in the promulgation of legislations by the Provincial Legislature. Strategic objectives, performance indicators, planned targets and actual achievements The House of Traditional Leaders has played an oversight role on overseeing the functionality of committees and local houses. Traditional Leaders Indaba and the opening of the House of Traditional Leaders were convened during the period under review. Strategic objectives: Programme Name: HOUSE OF TRADITIONAL LEADERS Strategic objectives 2013/2014 Annual Target To exercise oversight and participate in the promulgation of legislations by the Provincial legislature 3 Oversight Reports on the visit to the 3 Local Houses convened 3 Reports on functionality of the 3 Local Houses compiled (Ehlanzeni; Nkangala and Gert Sibande) 38 Reports on Committees of HTL compiled (Justice and Land Affairs 8; Social Development 8; Target Groups 6; Traditional Leadership Claims and Disputes 8 and Traditions Culture and Customs 8) 8 Sittings of the HTL convened Support to the Mpumalanga Provincial House of Traditional Leaders Number of reports on the functionality of Local House Number of reports on the functionality of the Provincial Committees Special sittings of HTL - Research report on Genealogy 2 Workshops on legislations conducted for Traditional Leaders (Traditional Affairs Act and Spatial Planning & Land Use Management Act) Monitoring reports on compliance with HTL legislations - 5 Provincial House Committees functional Support to the Mpumalanga Provincial House of Traditional Leaders provided 3 reports on the functionality of the Local Houses compiled 5 reports on functionality of the Provincial Committees compiled 3 Special sittings of HTL convened 6 Approved Research Reports on Genealogy compiled 4 Monitoring reports on compliance with HTL Legislations compiled 5 reports on functionality of the Provincial Committees compiled Deviation from planned target to Actual Achievement for Comment on deviations Reasons for deviations Annual Report Department of Co-operative Governance and Traditional Affairs 36

40 Performance indicators Programme: House of Traditional Leaders Sub-programme: Administration of the House of Traditional Leaders Sub-sub programme: Office of the Chairperson Performance Indicator 2013/2014 Annual Target Number of reports on the functionality of the Local House Number of reports for Chairpersons Committee Traditional Leaders Indaba Number of reports for Chairpersons forum Reports on the Executive Committee meetings 3 Reports on oversight visits to Local Houses compiled 4 Oversight Reports on Chairperson s Committee Meeting held 1 Traditional Leaders Indaba convened 2 Reports on the sitting of the Provincial Chairperson s Forum compiled 24 Reports of the Executive Committee Meetings compiled 3 Reports on the functionality of the Local Houses 4 Reports for Chairpersons Committee 1 Traditional Leaders Indaba 3 reports for Chairpersons forum 12 Reports on the Executive Committee meetings 3 Reports on the functionality of the Local Houses compiled 4 Reports for Chairpersons Committee compiled 1 Traditional Leaders Indaba convened 3 reports for Chairpersons forum compiled 12 Reports on the Executive Committee meetings compiled Deviation from planned target to for Comment on deviations Programme: House of Traditional Leaders Sub-programme: Administration of the House of Traditional Leaders Sub-sub programme: Office of the Secretary Performance Indicator 2013/2014 Annual Target Annual Opening of the House of Traditional Leaders 1 Annual Opening of the House of Traditional leaders convened 2 Secretary s Forum sittings held 1 Annual Opening of the House of Traditional Leaders 1 Annual Opening of the House of Traditional Leaders convened Number of reports for Secretaries forum 4 reports for Secretaries forum 4 reports for Secretaries forum compiled Sittings of HTL - 4 Sittings of HTL 4 Sittings of HTL convened Special sittings of HTL - 3 Special sittings of HTL Number of reports on functionality of the Provincial committees Monitor provision and utilisation of tools of trade for Executive of HTL - 5 Reports on functionality of the Provincial Committees - 4 Monitoring reports on the provision and utilisation of tools of trade for Executive of HTL 3 Special sittings of HTL convened 5 Reports on functionality of the Provincial Committees compiled 4 Monitoring reports on the provision and utilisation of tools of trade for Executive of HTL compiled Deviation from planned target to for Comment on deviations Programme: House of Traditional Leaders Sub-programme: Administration of the House of Traditional Leaders Sub-sub programme: Research Policy Development and Planning Performance Indicator 2013/2014 Annual Target Research report on Genealogy Research services rendered for the HTL Analysis report for HTL committees and local Houses - 6 Approved Research Reports on Genealogy 10 Reports on research services rendered to Committees of HTL compiled 2 Reports on Research services rendered for the HTL - 4 Analysis reports for HTL Committees and Local Houses 6 Approved Research Reports on Genealogy compiled 2 Reports on Research services rendered for the HTL compiled 4 Analysis reports for HTL Committees and Local Houses compiled Deviation from planned target to for Comment on deviations 37 Department of Co-operative Governance and Traditional Affairs...Annual Report

41 Programme: House of Traditional Leaders Sub-programme: Administration of the House of Traditional Leaders Sub-sub programme: Legal Services Performance Indicator 2013/2014 Annual Target Legal services rendered to committees of HTL Monitoring reports on compliance with HTL Legislations 4 Reports on legal services rendered compiled 1 Bill on National Traditional Affairs submitted 4 Legal services rendered to committees of HTL 4 Monitoring reports on compliance with HTL Legislations 4 Legal services rendered to committees of HTL compiled 4 Monitoring reports on compliance with HTL Legislations compiled Deviation from planned target to for Comment on deviations Programme: House of Traditional Leaders Sub-programme: Committees and Local Houses Sub-sub programme: Committees Performance Indicator 2013/2014 Annual Target Deviation from planned target to for Comment on deviations Number of Provincial House Committees functional Report on Functionality of 5 Provincial House Committees compiled 5 Provincial House Committees functional 5 Provincial House Committees functional Programme: House of Traditional Leaders Sub-programme: Committees and Local Houses Sub-sub programme: Local Houses Performance Indicator 2013/2014 Annual Target Deviation from planned target to for Comment on deviations Number of functional Local Houses (Ehlanzeni, Nkangala and Gert Sibande) - 3 functional Local Houses (Ehlanzeni, Nkangala and Gert Sibande) 3 Local Houses functional (Ehlanzeni, Nkangala and Gert Sibande) Reasons for deviations Strategy to overcome areas of under performance Changes to planned targets There were no changes made on the performance indicators and targets after the tabling and approval of the Annual Performance Plan, however, adjustments to the budget were done. Linking performance with budgets Main appropriation for the programme has increased by 2.9 per cent from R million to R million in 2013/14 and 2014/15 financial years respectively. The high spending is attributed to sitting allowances for the committees. Sub-programme expenditure Sub- Programme Name Administration of HTL Committees and Local Houses of Traditional Leaders Final 2013/2014 Actual Expenditure (Over)/ Under Expenditure Final Actual Expenditure (Over)/ Under Expenditure R 000 R 000 R 000 R 000 R 000 R (314) Total Annual Report Department of Co-operative Governance and Traditional Affairs 38

42 5. TRANSFER PAYMENTS 5.1 Transfer payments to public entities The Department does not transfer payments to Public Entities 5.2 Transfer payments to all organisations other than public entities The table below reflects the transfer payments which were budgeted for in the period 1 April 2014 Name of transferee Type of organisation Purporse for which the funds were used Did the dept. comply with 38 (1) (j) of the PFMA Amount transferred (R 000) Amount spent by the entity (R 000) Amashane TC Cultural Ceremony Yes N/A Administration Yes N/A Bakgatla Ba Maloka TC Cultural Ceremony Yes N/A Administration Yes N/A Bakgatla Ba Mmakau TC Cultural Ceremony Yes N/A Administration Yes N/A Bakgatla Ba Mocha TC Cultural Ceremony Yes N/A Administration Yes N/A Bakgatla Ba Seabe TC Cultural Ceremony Yes N/A Administration Yes N/A Bakgatla Ba Lefifi TC Cultural Ceremony Yes N/A Administration Yes N/A Duma TC Cultural Ceremony Yes N/A Administration Yes N/A Ebutsini TC Cultural Ceremony Yes N/A Administration Yes N/A Embhuleni TC Cultural Ceremony Yes N/A Administration Yes N/A Emfumbeni TC Cultural Ceremony Yes N/A Administration Yes N/A Emjindini TC Cultural Ceremony Yes N/A Administration Yes N/A Enikakuyengwa TC Cultural Ceremony Yes N/A Administration Yes N/A Enkhaba TC Cultural Ceremony Yes N/A Administration Yes N/A Gutshwa TC Cultural Ceremony Yes N/A Administration Yes N/A Hoxane TC Cultural Ceremony Yes N/A Administration Yes N/A Hhoyi TC Cultural Ceremony Yes N/A Administration Yes N/A Jongilanga TC Cultural Ceremony Yes N/A Administration Yes N/A Kgarudi TC Cultural Ceremony Yes N/A Administration Yes N/A Lekgoetla TC Cultural Ceremony Yes N/A Administration Yes N/A Lomshiyo TC Cultural Ceremony Yes N/A Administration Yes N/A Lugedlane TC Cultural Ceremony Yes N/A Administration Yes N/A Madabukela TC Cultural Ceremony Yes N/A Administration Yes N/A Mahlaphahlapha TC Cultural Ceremony Yes N/A Administration Yes N/A Reasons forr funds unspent by the entity 39 Department of Co-operative Governance and Traditional Affairs...Annual Report

43 Name of transferee Type of organisation Purporse for which the funds were used Did the dept. comply with 38 (1) (j) of the PFMA Amount transferred (R 000) Amount spent by the entity (R 000) Mahlobo TC Cultural Ceremony Yes N/A Administration Yes N/A Manala Makerane TC Cultural Ceremony Yes N/A Administration Yes N/A Malele TC Cultural Ceremony Yes N/A Administration Yes N/A Manala Mbongo TC Cultural Ceremony Yes N/A Administration Yes N/A Manala Mgibe TC Cultural Ceremony Yes N/A Administration Yes N/A Mandlamakhulu TC Cultural Ceremony Yes N/A Administration Yes N/A Mandlangampisi TC Cultural Ceremony Yes N/A Administration Yes N/A Mantsholo TC Cultural Ceremony Yes N/A Administration Yes N/A Mashilane TC Cultural Ceremony Yes N/A Administration Yes N/A Masoyi TC Cultural Ceremony Yes N/A Administration Yes N/A Mathibela TC Cultural Ceremony Yes N/A Administration Yes N/A Matsamo TC Cultural Ceremony Yes N/A Administration Yes N/A Mawewe TC Cultural Ceremony Yes N/A Administration Yes N/A Mbuyane TC Cultural Ceremony Yes N/A Administration Yes N/A Mdluli TC Cultural Ceremony Yes N/A Administration Yes N/A Mhlaba TC Cultural Ceremony Yes N/A Administration Yes N/A Mlambo TC Cultural Ceremony Yes N/A Administration Yes N/A Mnisi TC Cultural Ceremony Yes N/A Administration Yes N/A Mogane TC Cultural Ceremony Yes N/A Administration Yes N/A Mohlala TC Cultural Ceremony Yes N/A Administration Yes N/A Moletele TC Cultural Ceremony Yes N/A Administration Yes N/A Moreipuso TC Cultural Ceremony Yes N/A Administration Yes N/A Mpakeni TC Cultural Ceremony Yes N/A Administration Yes N/A Mpisikazi TC Cultural Ceremony Yes N/A Administration Yes N/A Msogwaba TC Cultural Ceremony Yes N/A Administration Yes N/A Ndlela TC Cultural Ceremony Yes N/A Administration Yes N/A Reasons forr funds unspent by the entity Annual Report Department of Co-operative Governance and Traditional Affairs 40

44 Name of transferee Type of organisation Purporse for which the funds were used Did the dept. comply with 38 (1) (j) of the PFMA Amount transferred (R 000) Amount spent by the entity (R 000) Ndzundza Fene TC Cultural Ceremony Yes N/A Administration Yes N/A Ndzundza Mabhoko TC Cultural Ceremony Yes N/A Administration Yes N/A Ndzundza Mabusa TC Cultural Ceremony Yes N/A Administration Yes N/A Ndzundza Pungusha TC Cultural Ceremony Yes N/A Administration Yes N/A Ndzundza Somphalala TC Cultural Ceremony Yes N/A Administration Yes N/A Nkambeni TC Cultural Ceremony Yes N/A Administration Yes N/A Ogenyaneni TC Cultural Ceremony Yes N/A Administration Yes N/A Sethlare TC Cultural Ceremony Yes N/A Administration Yes N/A Siboshwa TC Cultural Ceremony Yes N/A Administration Yes N/A Somcuba TC Cultural Ceremony Yes N/A Administration Yes N/A Reasons forr funds unspent by the entity Name of transferee Type of organisation Purpose for which the funds were to be used Did the dept. comply with 38 (1) (j) of the PFMA Amount transferred (R 000) Amount spent by the entity (R 000) Thabakgolo TC Cultural ceremony Yes N/A Administration Yes N/A Siboshwa TC Cultural ceremony Yes N/A Administration Yes N/A Total Transfers Reasons why funds were not transferred The table below reflects the transfer payments which were budgeted for in the period 1 April 2014 to 31 March 2015, but no transfer payments were made. Name of transferee Type of organisation Purpose for which the funds were to be used Amount budgeted for (R 000) Amount transferred (R 000) Reasons why funds were not transferred Bakgatla Ba Seabe Traditional Council Cultural ceremony 60 - Funds not requested Ndlela Traditional Council Cultural ceremony 60 - Funds not requested Siboshwa Traditional Council Cultural ceremony 60 - Funds not requested TOTAL Funds not requested Transfer payments to Municipalities Name of transferee Type of organisation Purpose for which the funds were used Did the dept. comply with 38 of the PFMA Amount transferred (R 000) Amount spent by the entity (R 000) Reasons for funds unspent by the entity Gert Sibande District Municipality Municipality Water and Sanitation Intervention at Lekwa Municipality Yes 10,000 10,000 N/A Water and Sanitation Intervention at Dipaleseng Municipality Yes 1,000 1,000 N/A TOTAL 11,000 11, Department of Co-operative Governance and Traditional Affairs...Annual Report

45 6. CONDITIONAL GRANTS 6.1. Conditional grants and earmarked funds paid The Department had no conditional grants and earmarked funds paid for the year under review Conditional grants and earmarked funds received The department received conditional grant for the implementation of the youth waste management project through Expanded Public Works programme (EPWP) amounting to R2 million. The full grant of R2 million spent in the year under consideration. The funds were received through provincial treasury. In terms of the condition of the grant, the department was creating 100 full time equivalent jobs, however the department over performed in that 146full time equivalent jobs were create. The table below details the conditional grants and ear marked funds received during for the period 1 April 2014 to 31 March 2015 Conditional Grant: EPWP Integrated Grant for Provinces Department who transferred the grant Purpose of the grant Expected outputs of the grant Actual outputs achieved National Department of Public Works Expanded Public Works Programme (EPWP) 100 Jobs to be created 146 Jobs created Amount per amended DORA R2 million Amount received (R 000) Reasons if amount as per DORA was not received Amount spent by the department (R 000) Reasons for the funds unspent by the entity Reasons for deviations on performance Measures taken to improve performance Monitoring mechanism by the receiving department R2 million R2 million Not applicable Not applicable Not applicable Monthly Reports 7. DONOR FUNDS 7.1. Donor Funds Received The Department did not receive donor funds for the year under review. 8. CAPITAL INVESTMENT 8.1. Capital investment, maintenance and asset management plan The Department has no infrastructure projects or programme other than the installation of the 10 Steel Reservoirs in Nkomazi, Mbombela and Bushbuckridge Local Municipalities and the construction of 4 Traditional Council Offices. It is expected that all these projects will be finalised in the 15/16 financial year Maintenance was performed on the Disaster Management Centre as the previously water pipeline providing supply to both the Provincial Archives Building and The Disaster management Centre, was rerouted to improve the water supply and prevent bursts and leakages. There are no plans to close down or down grade any current facilities, all office facilities are utilised and maintained through the provision of the Department of Public Works, Roads and Transport. The Department s asset register is kept up to date through having a dedicated asset management section. Officials perform a monthly reconciliation between the transactions on the financial systems as well as a quarterly physical asset verification to ensure that the register reconciles with physical assets in existence. During the year, the value of the asset registers (minor and major assets) has been reduced by R0.105 million Due to thefts and losses and by R2.265 million Due to disposals Infrastructure projects 2013/2014 Final R 000 Actual Expenditure R 000 (Over)/Under Expenditure R 000 Final R 000 Actual Expenditure R 000 (Over)/Under Expenditure R 000 New and replacement assets Existing infrastructure assets Upgrades and additions Maintenance and repairs - Rerouting of water pipeline Disaster Management centre Total Annual Report Department of Co-operative Governance and Traditional Affairs 42

46 PART C: GOVERNANCE ANNUAL REPORT Department of Co-operative Governance and Traditional Affairs...Annual Report

47 1. INTRODUCTION The Department has committed to the maintenance of the highest possible standards of good governance as this is fundamental to the management of public resources. In order to achieve good governance the department has established the following governance structures for effective, efficient and economical utilization of state resources. 2. RISK MANAGEMENT The Department has established risk management unit that is headed by Deputy Director and the unit has achieved the following: Put up risk management structures and process (risk management committee in compliance with risk management framework), Risk identification within the department has been undertaken both Strategic and Operational risks Risk mitigation plans have been developed and adopted by management to address key risks and monitoring the implementation of the risk migration plan is conducted quarterly The Department has developed and approved the following policies and strategies to ensure the effective management of risks o o o o o o Risk Management Policy Risk Management Strategy Fraud Prevention Plan Whistle Blowing policy Risk Management Charter Risk Management Plan Internal processes are established to sensitize all employees of the relevance of risk management to the achievements of their performance. 3. FRAUD AND CORRUPTION The department s fraud prevention plan is in place Fraud awareness sessions are held and fraud pledges are signed by officials Fraud Awareness Workshops conducted. Fraud and corruption is reported through the National Hot line and cases reported are directed back to the Department and Internally fraud and corruption is reported through Presidential Line which is managed by Communication Section and referred to the relevant section for remedial actions Up to date there are no cases reported 4. MINIMISING CONFLICT OF INTEREST The department implemented several strategies in order to minimise conflict of interest by employees and this include amongst other: All members of SMS are required to complete financial disclosure forms as prescribed by DPSA at the beginning of each financial year. The Department has ensured that internal controls are strengthened to minimise conflict of interest in our Supply Chain. Service providers are required to complete the necessary forms to disclose their interests in terms of employment or relationships with officials employed by the state. They are further also required to disclose as relationships with other businesses. The SCM processes further provide for the segregation of duties which also assists as a control measure to prevent and detect and conflicts of interest. The Departmental database format makes provision for PERSAL verification in order to detect and prevent any business with state officials. All SCM role players are required to declare their interests annually and all SCM role players appointed on any of the three bid committees are required to declare their interests at each sitting of the committee. Bid Committee members are all required to declare their interest and to sign oath of secrecy 5. CODE OF CONDUCT All staff members in the department are required to sign a code of conduct upon appointment. Workshops are conducted as part of induction programme to all our employees. Any breach of code of conduct is dealt with through disciplinary processes. For the year under review we did not have breach of code of conduct that was reported. 6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES The department has complied with all safety standards in line with occupational health and safety act with the assistance of the department of Public Works Roads and Transport as the custodian of all our Government buildings Annual Report Department of Co-operative Governance and Traditional Affairs 44

48 7. PORTFOLIO COMMITTEES The department report to the portfolio committee on Co-operative Governance and Human Settlements. This is a political structure formed by the legislature to perform an oversight function to the department. The committee review the department s Strategic plan, Annual Performance plans and budgets annually before they get approved for implementation. Once approved, the implementation of the plans and budget are monitored on a quarterly basis and this is achieved through analysis of our implementation progress reports. The department is regularly required to submit responses to questions raised on the plans and progress reports. This include progress on implementation of recommendations 8. SCOPA RESOLUTIONS SCOPA meeting was held on the 12 of February 2015 RESOLUTION NUMBER 4 of 2005 Audit Action Plan for 2013/14 Financial Year 4 of 2005 Payment of invoices within 30 days 4 of 2005 Internal Audit SUBJECT DETAILS PROGRESS RESOLVED (YES/NO) 3.1.1(i) The Executive Authority must ensure that the Accounting Officer fill all vacant funded positions on time (ii) The Accounting Officer must ensure that management exercise oversight responsibility regarding financial, performance reporting and related internal controls (i) The Accounting Officer must take disciplinary action against the officials who failed to ensure that monies owed by the department are settled within 30 days as required by section 38(1) (f) of the PMFA and Treasury Regulations (i) The Accounting Officer must submit to the Committee signed copies of the Audit Action Plan for 2013/ (ii) The Accounting Officer must ensure that recommendations of the internal audit unit are implemented by all officials and disciplinary action be taken against those who fail to comply. 4 of 2005 Accruals 3.4.1(i) The Accounting Officer must develop a plan that will ensure that the department maintains the clean audit. The Executive Authority has directed the Accounting Officer to fill all funded vacant posts within three (3) months after the posts have became vacant. The Department has established an Annual Report Committee which reviews the Annual Financial Statements and Performance Report prior to submission to Treasury and Auditor General. The Department further conducts quarter performance reviews (financial and non financial) as part of oversight responsibility on the reported information. The Internal Audit Unit and the Office of the Accountant General is also requested to perform a high level review of the Annual Reports prior to submission to Auditor General and Treasury. Letters of intend to institute disciplinary actions on officials who failed to ensure that monies owed by the Department are settled within 30 days have been issued to the affected officials. The signed copy of the 2013 Audit Action Plan has been submitted to the Committee. The Accounting Officer is evaluating and implementing the Internal Audit unit s recommendations and follow up audits are being conducted by the unit to monitor progress on the implementation of their recommendations. All responsibility managers have been directed to take the Internal Audit Unit s function serious and implement its recommendations accordingly. Disciplinary actions will be taken by the Accounting Officer on officials who fail to comply with such recommendations. Despite the clean audit obtained by the Department in 2013/14 financial year, an Audit Action Plan has been developed to deal with housekeeping matters with an objective of maintaining the clean audit. The Department monitors the implementation of the Audit Action Plan on monthly basis. The Department has also established a functional Compliance Unit which complements the work of the shared Internal Audit to monitor compliance with internal policies and with Laws and Regulations. NO NO NO NO (ii) The Accounting Officer must monitor progress made by municipalities in order to achieve clean audits. The Accounting Officer working together with the Department of Finance is monitoring and providing support to ensure that all municipalities develop and implement Audit Action Plans (External and Internal) to address issues raised both the Office of the Auditor General and Internal audit units with the objective of obtaining a clean audit and improve service delivery within their areas of jurisdiction. The Department together with the Department of Finance continues to support all the municipalities with the implementation of the approved Integrated Municipal Support Plan to ensure improved financial management and service delivery. 45 Department of Co-operative Governance and Traditional Affairs...Annual Report

49 RESOLUTION NUMBER SUBJECT DETAILS PROGRESS RESOLVED (YES/NO) 4 of (i) The Accounting Officer must put plans to minimize the accruals. The Department has established and implemented a cut-off date for submission of invoices and is meeting with all contracted / standing suppliers on regular basis. NO 4 of 2005 Fruitless and Wasteful Expenditure (i) The Accounting Officer must provide proof that the irregular expenditure was reported to the Provincial Treasury and Auditor General as required by Section 38(1)(g) of the PFMA. Regular follow ups are being made with service providers to submit their invoices within 30 days after a service/good has been rendered /delivered. The Department did not report the fruitless and wasteful expenditure as it was discovered during the audit process, however the Department effected adjustments on the Annual Financial Statements which were subsequently submitted to the Office of the Auditor General and Provincial Treasury in accordance to section 40 of the Public Finance Management Act(PFMA). NO (ii) The Accounting Officer must develop effective internal control systems and tools to timeously detect and prevent fruitless wasteful, irregular and fruitless expenditure as required by Section 51(1) (b) (ii) of the PFMA. The Department has developed a checklist and fully implements SBD forms which are used by Supply Chain Management Unit and Expenditure section to prevent unauthorized, Irregular and Fruitless and Wasteful expenditure. The Department has further developed a template for reporting of Unauthorised, Irregular, Fruitless and Wasteful Expenditure on discovery by all officials within the Department (iii) The Accounting Officer must develop effective measure and systems to prevent fruitless and wasteful expenditure and irregular expenditure from occurring in the Department (iv) The Accounting Officer must recover the fruitless and wasteful expenditure relating to officials with NO shows hotels. The Department has developed a checklist and fully implements SBD forms which are used by Supply Chain Management Unit and Expenditure section to prevent unauthorized, Irregular and Fruitless and Wasteful expenditure. The Department has further developed a template for reporting of Unauthorised, Irregular, Fruitless and Wasteful Expenditure on discovery by all officials within the Department. The Department has created debts and is currently deducting all NO show fees from the affected officials. 4 of 2005 Irregular Expenditure (i) The Accounting officer must provide the Committee with proof that disciplinary actions was taken against the official and that money was recovered as required by section 38(1) (c) of the PFMA (ii) Accounting Officer must proof that the irregular expenditure amounting to R was timely reported to Treasury. The Accounting Officer did take disciplinary actions against the officials and she was demoted for this conduct and subsequently dismissed for other conducts within the Department. Further investigations revealed that there was value for money received by the Department despite the contravention of procurement processes. The Irregular expenditure of R 836, was never recovered by the Department however condonement was granted by the Provincial Treasury. NO 4 of 2005 Investigations 4 of 2005 Audit Committee 3.7.1(iii) The Accounting Officer must develop effective measures and systems timely recover monies due to the department as required by Section 38(1) (c) of the PFMA (i) The Accounting Officer must make a follow up on the matter with the office of the president on providing the progress report on the outcome of investigations to the Committee not later than the 29 May (ii) The Accounting Officer must provide to the Committee on progress made in implementing the SIU report (i).the Accounting Officer must ensure that the department implements recommendations of the internal Audit Committee (ii) The Accounting Officer must ensure that there is an official (secretariat) responsible for providing support and keeping of documents for the Audit Committee. All monies due to the Department are timeously captured on the financial system (BAS) as debts and respective debtors sign the acknowledgement of debt forms in accordance to the Departmental Policy. Debtors older than 90 days are handed over Legal Section to issue letters of demand and institute legal actions to recover such debts / monies. The Department has issues a follow up letter to the Presidency Office on the progress of the Water for All Flagship projects and is still awaiting for a response thereof Progress report on the implementation of the SIU report/ recommendations will be provided to the Committee upon receipt of such report from the Presidency s Office. The Accounting Officer is evaluating and implementing the Audit Committee s recommendations and follow up audits are being conducted by the unit to monitor progress on the implementation of the Committee s recommendations. The Department will also provides progress report on the Audit Committee s resolutions on quarterly basis during the sittings Disciplinary actions will be taken by the Accounting Officer on officials who fail to comply with such recommendations. The Department has assigned a dedicated official within Compliance Unit at Deputy Director level to deal with providing support and keeping of documents for the Audit Committee. NO NO Annual Report Department of Co-operative Governance and Traditional Affairs 46

50 9. PRIOR MODIFICATIONS TO AUDIT REPORTS The department had no prior modification to audit reports. 10. INTERNAL CONTROL UNIT Internal controls are any actions taken by management, the executive authority and other parties to enhance risk management and increase the likelihood that established objectives and goals will be achieved. Management achieves this control by implementing an internal control system encompassing all the policies and procedures adopted by management to assist the department in achieving its objectives. The Department has established a Compliance Management Unit that is headed by a Deputy Director. The unit is responsible for reviewing the Department s level of compliance to laws and regulations as well as internal controls and policies. We have since developed and implemented a compliance monitoring tool to ensure that the department identify and manage compliance to laws and regulations that affects its operations. 11. INTERNAL AUDIT AND AUDIT COMMITTEES The Department utilizes the services of the Internal Audit function under the control and direction of a shared Audit Committee located at the Office of the Premier. The shared Internal Audit function operated within an approved Internal Audit Charter and in accordance with the requirements of the PFMA, it s Treasury Regulations and the Standards set for the Professional Practice of Internal Auditors by the Institute of Internal Auditors. The shared Internal Audit function is an independent, objective assurance and consulting activity which adds value and improves the operations of the Department. It assists the Department in accomplishing its objectives through providing an independent objective assurance to Management regarding the adequacy and effectiveness of risk management, control and governance processes. The Internal Audit Function has been functioning effectively during the year under review. The Shared Internal Audit function has officials dedicated to the Department of Co-Operative Governance and Traditional Affairs. The Internal Audit function, during the year under review had developed a three-year strategic plan and annual operation plan based on the results of the risk assessment. These plans were recommended by the Head of the Department and approved by the Audit Committee. The Internal Audit function reports the progress on the audits performed and progress on the approved internal audit plans to Management and to the Audit Committee on a quarterly basis. Management ensures that comments are provided to all the findings raised by internal audit, and action plans to address those findings are implemented. The following audit assignments were conducted and completed by the shared Internal Audit function as per the approved internal audit plan for the year under review: Thusong Services Centres. Municipal Finance. Review of Interim Financial Statements. Demand and Acquisition. Payment to Creditors. Development and Planning. Second Quarter Performance Information. Management Performance Assessment Tool. Human Resources Management Information Technology General and Application Controls. Information Technology Governance Review. Follow-up Internal Audit and External Auditors Reported Audit Findings. The shared Audit Committee comprises of external non official members and operates within an approved Audit Committee Charter, which is reviewed annually, and in accordance with the requirements set by the PFMA and Treasury Regulations. The role of the shared Audit Committee is to assist the Accounting Officer and Management of the department discharge their duties regarding risk management; financial information; internal controls and governance processes. In this regard, the shared Audit Committee independently oversees the operations and the activities of that department. The shared Audit Committee has direct and unobstructed lines of communication to the Accounting Officer, Senior Management, the relevant Treasury, shared Internal Audit and External Audit. Attendance of audit committee meetings by audit committee members In accordance with section 77(b) of the PFMA, an Audit Committee must meet at least twice a year. During the financial year under review, the shared Audit Committee met six (6) times. In these meetings, the Accounting Officer and executive management were always represented. The Auditor-General is always invited to attend, thus ensuring that such meetings are as effective and transparent as possible. The audit committee meetings held were attended as follows: 47 Department of Co-operative Governance and Traditional Affairs...Annual Report

51 Name Qualifications Internal or External Date appointed Date Resigned No of meetings attended Ms. G Deiner B.A. Degree Chairperson HDip in Education BCompt Proffessional Accountant (SA) Ms. T. Njozela MBA BCompt Hon BCom Mr. X. Khumalo CA(SA) BCom Hon (Accounting) BCom Adv G Khoza HDip in Tax Law LLB BProc External 01 Jun 2009 N/A 7 External 01 Oct 2012 N/A 7 External 01 Oct 2012 N/A 5 External 01 Mar 2014 N/A 7 The members of the shared Audit Committee continued to meet with the Accounting Officer, Senior Management of the Department, the shared Internal Audit and External Audit collectively and individually (as and when the need arose) to address matters related to risk management, control and governance processes as well as challenges facing the Department. All the members of the shared Audit Committee are independent, non-official members and have been appointed from outside the public service. 12. AUDIT COMMITTEE REPORT We are pleased to present our report for the financial year ended 31 March 2015 Audit Committee Responsibility The Audit Committee reports that it has complied with its responsibilities arising from Section 38(1)(a)(ii) and 77 of the PFMA and Treasury Regulation 3.1. 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. Independence of the Audit Committee The Audit Committee is independent of Management in the execution of its duties. All the members of the Audit Committee have been appointed from outside the public service pursuant to section 77 of the PFMA. The qualifications of the members and details of their attendance at meetings is included in Governance Section of the Annual Report above. The members remain committed to providing oversight and advice of a high standard. The Effectiveness of Internal Control In line with the provisions of the PFMA and King Report on Corporate Governance, Internal Audit provided the Audit Committee and Management with assurance whether the system of internal controls is adequate and effective. Our review of the findings of the Internal Audit work, which was based on the risk assessments conducted in the department revealed certain weaknesses, which were then raised with the Department. The following internal audit work was completed during the year under review: Thusong Service Centres Municipal Finance Review of Interim Financial Statements Demand and Acquisition Payment to Creditors Development and Planning Quarterly Performance Information Management Performance Assessment Tool Human Resources Information Technology General & Application Controls Information Technology Governance Review Follow-up on Internal Audit s and External Auditor s Reported Audit Findings The following were areas of concern emanating from the work of internal audit: The Department must attend and formulate a Service Level Agreement and Memorandum of Understanding with the Municipalities Delays in completion of projects Some compliance issues which required attention were identified during review of: - Payment to Creditors - Human Resources (Payment of leave gratuity) Delay in implementation of agreed management corrective action plans to address identified control weaknesses Review of the implementation of the Corporate Governance Information and Communication Technology Policy Framework (CGICT) indicated areas where ongoing assessment would be required Annual Report Department of Co-operative Governance and Traditional Affairs 48

52 In-Year Management and Quarterly Reports The Department reported monthly and quarterly to the Treasury as is required by the PFMA. We are satisfied with the content and quality of the reports prepared and issued by the Accounting Officer of the Department during the year under review. Evaluation of Financial Statements The Audit Committee has reviewed and evaluated the Annual Financial Statements prepared by the Department for the year ended 31 March 2015 and, based on the information provided to the Audit Committee, concurs and accepts the Auditor-General s conclusion on the Annual Financial Statements and is of the opinion that the audited Annual Financial Statements be accepted and read together with the report of the Auditor-General South Africa. Internal Audit Internal Audit provided numerous reports highlighting the findings which emanated from the audits undertaken as guided by the pre-approved risk based audit plan. The Audit Committee is satisfied that the internal audit activity is operating effectively in the fulfilment of its mandate and that it has addressed the risks pertinent to the Department in its audits. Risk Management The Audit Committee is responsible for the oversight of risk management. The Risk Management Committee reports to the Audit Committee on a quarterly basis on the Department s management of risk. The Audit Committee has reviewed the risk registers and is reasonably satisfied with the reports from the Risk Management Committee. Auditor-General s Report The Audit Committee has met with the Auditor-General South Africa to ensure that there are no unresolved issues. Also the Audit Committee reviewed the Department s implementation plan for audit issues raised in the Auditor-General s Management Report in the previous year and we are satisfied that the matters have been adequately resolved. The Audit Committee concurs and accepts the conclusion of the Auditor-General South Africa as contained in the Auditor-General s Report. Conclusion The Audit Committee wishes to congratulate the Department for achieving a clean audit opinion for the second consecutive financial year. The Audit Committee encourages Management to work tirelessly towards maintaining this commendable result in 2015/16. The Audit Committee wishes to thank the Member of the Executive Council, Head of Department and staff for their continued commitment to good governance within the Department as well as cooperation in assisting the Committee to discharge its responsibilities. Further appreciation is extended to the Chief Financial Officer and the finance team for their efforts regarding the financial statements and to the teams from Internal Audit and the Auditor-General South Africa for the value they continue to add to the Department. On a personal note, I wish to extend my appreciation to my colleagues in the Audit Committee for their invaluable advice and commitment during the year. I MS GAYLENE DEINER CHAIRPERSON OF THE SHARED AUDIT COMMITTEE OFFICE OF THE PREMIER DATE: 31 July Department of Co-operative Governance and Traditional Affairs...Annual Report

53 PART D: HUMAN RESOURCE MANAGEMENT ANNUAL REPORT Annual Report Department of Co-operative Governance and Traditional Affairs 50

54 1. LEGAL FRAMEWORK THAT GOVERN HR MANAMENT Public Services Regulations, 2001 as amended (Chapter 1 Part III J.3 and J.4 Public Service Act, 1994 Constitution of RSA, 1996 White Paper on Human Resource Public Finance Management Act, NO 1, 1999 Treasury Regulation Transformation in the Public Service 1995 South African Qualifications Authority act,1995 Internship/Learnership Framework for the Public Service, 2002 Employment Equity Act 55 of 1998 Labour Relations act, 66 of 1995 Occupational Health and Safety Act, 85 0f 1993 Skills Development Act,97 0f 1998 Basic Condition of Employment Act 75 of 1997 Skills Development levies Act 9 of 1999 The Scarce Skills Strategy for the Public Services 2002 The Scarce Skills Policy Framework for the public service INTRODUCTION o The value of human capital in the Department The Department has staff complement of 883 employees who are based at head office an in the three districts of the province. Human Capital is seen as the stock of competencies, knowledge, social and personality attributes, including creativity, embodied in the ability to perform work and improve service delivery. The Department has maximised, recognised and utilised the value of its human capital in order to deliver on its mandate. Correct utilization of employees skills, knowledge and abilities was strengthened. Employees who are fit for purpose were recruited and placed where they will be most effective and productive. The department strives to maintain the loyalty of employees and motivate them to use their talents. o Overview of HR matters in the department The current structure seeks to position CoGTA as a strategic centre for coordination and support to municipalities through skilled and competent workforce. A technical unit was established and staffed with technically competent staff in the fields of spatial planning and infrastructure. The Land Use component was transferred to this department from DARDLEA following an Executive Council Resolution. It is our understanding that for municipalities to perform, we need to ensure that the employ possess the necessary expertise and capabilities. In keeping to our goal we have developed and implemented a training programme which has courses accredited by SAQA. In our quest to improve the scarce skills base in the labour market, we have given bursaries to internal staff as well as matriculants who registered for technical qualifications in universities within the country. We know that our ability to attract and retain scarce talent is based on providing a safe and stimulating work environment that reflects the diversity of the communities in which we operate and in which the rights of employees are respected. We acknowledge that diversity is key to our growth and success. As such a staff retention policy has been reviewed that seeks to ensure the retention of scarcely skilled and talented staff. At CoGTA diversity signifies all aspects of peoples differences and similarities, including race, gender, disability, religion, culture, sexual orientation, naturality, thinking and skills. Embracing a culture of inclusion is critical to ensure that our diverse talent is managed and nurtured to drive successful organisational outcomes. We are in the process of sharpening our focus on empowering women and improving the representation of women at all levels. We are also committed to providing processes that are inclusive of people with disabilities. Currently in terms of representation we are at 40.6% of women in senior management positions and 1.4 % of people with disabilities. o Set HR priorities for the year under review and the impact of these priorities During the year under review HR focus on the following focus areas: Effective Implementation Human Resource Administration Effective Implementation of PMDS, HR Plan, EE Plan and HR Policies. Facilitate Human Resource Development Improve Records Management. 51 Department of Co-operative Governance and Traditional Affairs...Annual Report

55 We have achieved significant progress with regards to our administration practices and developed action plans to address the findings of the Auditors General. We managed to inculcate a culture of performance where there is an understanding that performance incentive is not an entitlement but one should demonstrate the impact or change within the department as a result of their superior performance. To us a high performance culture is essential in order to keep team spirit and boost morale. We conducted organisational wide workshops on all our Human Resource Policies to ensure proper implementation. We applied a holistic approach to employee health and well-being that encompass a broad spectrum of programmes and campaigns to create awareness on health and wellness matters. We have implemented health and awareness programme which increased awareness on Health and Wellbeing of employees. The department fully complied with the workforce planning framework and this was revealed through the provincial assessment of HR Plans as per the DPSA guidelines. Through the bursaries for external learners, the department seek to have a pool of ready qualified prospective employees who are given an opportunity to serve as intern for 12 months period after completion of their studies. o Policy development In the financial year under review 4 HR Policies were reviewed viz, Recruitment Policy, Special Leave Policy, Staff Retention Policy and Incentives Policy. o Highlight achievement We recruited employees in line with the current structure to fill strategic positions. The department has seen notable progress with regards to filling of posts at all levels in particular in the technical units. Performance management has been institutionalised and a performance culture is created. There has been improvement with regards to compliance matters and the turnaround time has improved. o Challenges faced by the department: It is safe to admit that reaching the planned target of 50% of woman in senior management positions and 2% of people with disabilities has been a challenge. The department has put strategies in place to ensure that this goal is achieved however there has been minimal progress. Although office space is still a challenge, the filing cabinets were installed to ensure safe keeping the records of the department. o Future HR Plan goal: The department has set the following HR Goals for the next five years as per its Human Resource Plan: Increase the efficiency of HR Administration Practices. Improved compliance to legislation Training critical mass of woman in middle management position of leadership development to position them for career Developing technical competency in line with job function of our employees. Improving records management in the Department 3. HUMAN RESOURCE OVERSIGHT EXPENDITURE 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 2014 and 31 March 2015 Programme Total expenditure (R 000) Personnel expenditure (R 000) Training expenditure (R 000) Professional and special services expenditure (R 000) Personnel expenditure as a % of total expenditure Average personnel cost per employee (R 000) Administration Local Governance Development and Planning Traditional Institutional Management The house of Traditional Leaders Total Annual Report Department of Co-operative Governance and Traditional Affairs 52

56 Table Personnel costs by salary band for the period 1 April 2014 and 31 March 2015 Salary band Personnel expenditure (R 000) % of total personnel cost No. of employees Average personnel cost per employee (R 000) Lower skilled (Levels 1-2) Skilled (level 3-5) Highly skilled production (levels 6-8) Highly skilled supervision (levels 9-12) Senior and Top management (levels 13-16) Other Total Table Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the period 1 April 2014 and 31 March 2015 Programme Salaries Overtime Home Owners Allowance Medical Aid Amount (R 000) Salaries as a % of personnel costs Amount (R 000) Overtime as a % of personnel costs Amount (R 000) HOA as a % of personnel costs Amount (R 000) Medical aid as a % of personnel costs Administration Local Governance Development and Planning Traditional Institutional Management The House of Traditional Leaders Total Table Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the period 1 April 2014 and 31 March 2015 Salary band Salaries Overtime Home Owners Allowance Medical Aid Amount (R 000) Salaries as a % of personnel costs Amount (R 000) Overtime as a % of personnel costs Amount (R 000) HOA as a % of personnel costs Amount (R 000) Medical aid as a % of personnel costs Skilled (level 1-2) Skilled (level 3-5) Highly skilled production (levels 6-8) Highly skilled supervision (levels 9-12 Senior management (level 13-16) Other TOTAL Employment and Vacancies The tables in this section summarise the position with regard to employment and vacancies. The following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment. This information is presented in terms of three key variables: programme salary band Critical occupations (see definition in notes below). Departments have identified critical occupations that need to be monitored. In terms of current regulations, it is possible to create a post on the establishment that can be occupied by more than one employee. Therefore, the vacancy rate reflects the percentage of posts that are not filled. 53 Department of Co-operative Governance and Traditional Affairs...Annual Report

57 Table Employment and vacancies by programmes on 31 March 2015 Programme Number of posts on approved establishment Number of posts filled Vacancy Rate Number of employees additional to the establishment 1 Administration Development & Planning Local Government House of Traditional Leaders Traditional Institution Management Total Table Employment and vacancies by salary band as on 31 March 2015 Salary band Number of posts on approved establishment Number of posts filled Vacancy Rate Number of employees additional to the establishment Lower skilled (Levels 1-2), Permanent % 0 Skilled (Levels 3-5), Permanent % 0 Highly skilled production (Levels 6-8), Permanent % 0 Highly skilled supervision (Levels 9-12), Permanent % 0 Senior management (Levels 13-16), Permanent % 0 Contract (Levels 1-2), Permanent 3 3 0% 0 Contract (Levels 3-5), Permanent 6 6 0% Contract (Levels 6-8), Permanent 3 3 0% 0 Contract (Levels 9-12), Permanent 6 6 0% 0 Contract (Levels 13-16), Permanent 7 7 0% 0 TOTAL % 0 Table Employment and vacancies by critical occupations as on 31 March 2015 Critical occupation Number of posts on approved establishment Number of posts filled Vacancy Rate Number of employees additional to the establishment Administrative related, Permanent % 0 Agriculture related, Permanent 4 4 0% 0 Architects town and traffic planners, Permanent 9 9 0% 0 Cartographic surveying and related technicians, Permanent 3 3 0% 0 Cleaners in offices workshops hospitals etc., Permanent % 0 Client inform clerks(switch receipt inform clerks), Permanent 0 0 0% 0 Communication and information related, Permanent % 0 Economists, Permanent 0 0 0% 0 Engineering sciences related, Permanent % 0 Engineers and related professionals, Permanent 3 3 0% 0 Finance and economics related, Permanent % 0 Financial and related professionals, Permanent % 0 Financial clerks and credit controllers, Permanent 9 9 0% 0 General legal administration & rel. professionals, Permanent 3 3 0% 0 Head of department/chief executive officer, Permanent 3 3 0% 0 Human resources & organised develop & relate prof, Permanent 3 3 0% 0 Human resources clerks, Permanent 2 2 0% 0 Human resources related, Permanent 8 8 0% 0 Information technology related, Permanent % 0 Legal related, Permanent 0% 0 Library mail and related clerks, Permanent 4 4 0% 0 Annual Report Department of Co-operative Governance and Traditional Affairs 54

58 Critical occupation Number of posts on approved establishment Number of posts filled Vacancy Rate Number of employees additional to the establishment Messengers porters and deliverers, Permanent 6 6 0% 0 Motor vehicle drivers, Permanent 1 1 0% 0 Other administrat & related clerks and organisers, Permanent % 0 Other administrative policy and related officers, Permanent % 0 Other occupations, Permanent % 0 Secretaries & other keyboard operating clerks, Permanent % 0 Security guards, Permanent 1 1 0% 0 Senior managers, Permanent % 0 Youth workers, Permanent 0 0 0% 0 TOTAL % Filling of SMS Posts The tables in this section provide information on employment and vacancies as it relates to members of the Senior Management Service by salary level. It also provides information on advertising and filling of SMS posts, reasons for not complying with prescribed timeframes and disciplinary steps taken. Table 3.3.1SMS post information as on 31 March 2015 SMS Level Total number of funded SMS posts Total number of SMS posts filled Salary Level 16 (MEC/ DG) Salary Level 15 (HOD) % of SMS posts filled Total number of SMS posts vacant % of SMS posts vacant % 0 0% % 0 0% Salary Level % 2 29% Salary Level % 5 23% Total % 7 22% Table SMS post information as on 31 March 2015 SMS Level Total number of funded SMS posts Total number of SMS posts filled Salary Level 16 (MEC/ DG) Salary Level 15 (HOD) % of SMS posts filled Total number of SMS posts vacant % of SMS posts vacant 2 2 0% 0 0% % 0 100% Salary Level % 2 29% Salary Level % 5 23% Total % 7 22% Table Advertising and filling of SMS posts for the period 1 April 2014 and 31 March 2015 SMS Level Advertising Filling of posts Number of vacancies per level advertised in 6 months of becoming vacant Number of vacancies per level filled in 6 months of becoming vacant Number of vacancies per level not filled in 6 months but filled in 12 months Salary Level 16 (MEC/ DG) Salary Level 15 (HOD) Salary Level Salary Level Total 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 2014 and 31 March 2015 Reasons for vacancies not advertised within six months The department has complied with the advertising of SMS posts within the stipulated period stated above Reasons for vacancies not filled within twelve months The Department is currently restructuring with the purpose of becoming lean 55 Department of Co-operative Governance and Traditional Affairs...Annual Report

59 Table Disciplinary steps taken for not complying with the prescribed timeframes for filling SMS posts within 12 months for the period 1 April 2014 and 31 March 2015 Reasons for vacancies not advertised within six months The Department has complied with the above Reasons for vacancies not filled within six months Posts were filled within 6 months 3.4. Job Evaluation Within a nationally determined framework, executing authorities may evaluate or re-evaluate any job in his or her organisation. In terms of the Regulations all vacancies on salary levels 9 and higher must be evaluated before they are filled. The following table summarises the number of jobs that were evaluated during the year under review. The table also provides statistics on the number of posts that were upgraded or downgraded. Table Job Evaluation by Salary band for the period 1 April 2014 and 31 March 2015 Salary band Number of posts on Number of % of posts Posts Upgraded approved establishmenated salary bands Jobs Evalu- evaluated by Number % of posts evaluated Posts downgraded Number % of posts evaluated Lower Skilled (Levels1-2) 8 0 0% 0 0% 0 0% Skilled (Levels 3-5) % 0 0% 0 0% Highly skilled production % 0 0% 0 0% (Levels 6-8) Highly skilled supervision % % 0 0% (Levels 9-12) Senior Management Service % 0 0% 0 0% Band A Senior Management Service Band B 6 0 0% 0 0% 0 0% Senior Management Service 1 0 0% 0 0% 0 0% Band C Senior Management Service 2 0 0% 0 0% 0 0% Band D Total % % 0 0% The following table provides a summary of the number of employees whose positions were upgraded due to their post being upgraded. The number of employees might differ from the number of posts upgraded since not all employees are automatically absorbed into the new posts and some of the posts upgraded could also be vacant. Table Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2014 and 31 March 2015 Gender African Asian Coloured White Total Female Male Total Employees with a disability 0 The following table summarises the number of cases where remuneration bands exceeded the grade determined by job evaluation. Reasons for the deviation are provided in each case. Table 3.4.3Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2014 and 31 March 2015 Occupation Number of employees Job evaluation level Remuneration level Reason for deviation Total number of employees whose salaries exceeded the level determined by job evaluation 0 Percentage of total employed 0 The following table summarises the beneficiaries of the above in terms of race, gender, and disability. Annual Report Department of Co-operative Governance and Traditional Affairs 56

60 Table3.4.4 Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2014 and 31 March 2015 Total number of Employees whose salaries exceeded the grades determine by job evaluation 3.5. 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 (see definition in notes below). Table Annual turnover rates by salary band for the period 1 April 2014 and 31 March 2015 Salary band Number of employees at beginning of period-1 April 2014 Appointments and transfers into the department Terminations and transfers out of the department Turnover rate Skilled (Levels 3-5), Permanent Highly skilled production (Levels 6-8), Permanent Highly skilled supervision (Levels 9-12), Permanent Senior Management Service Band A, Permanent Senior Management Service Band B, Permanent Senior Management Service Band C, Permanent Senior Management Service Band D, Permanent Contract (Levels 1-2), Permanent Contract (Levels 3-5), Permanent Contract (Levels 6-8), Permanent Contract (Levels 9-12), Permanent Contract (Band A), Permanent TOTAL Table Annual turnover rates by critical occupation for the period 1 April 2014 and 31 March 2015 Critical occupation Number of employees at beginning of period-april 2014 Appointments and transfers into the department Terminations and transfers out of the department Turnover rate Administrative related, Permanent Architects town and traffic planners, Permanent Cleaners in offices workshops hospitals etc., Permanent Client inform clerks(switchb recept inform clerks), Permanent Communication and information related, Permanent Economists, Permanent Engineering sciences related, Permanent Engineers and related professionals, Permanent Finance and economics related, Permanent Financial and related professionals, Permanent Financial clerks and credit controllers, Permanent General legal administration & rel. professionals, Permanent Head of department/chief executive officer, Permanent Human resources & organisat developm & relate prof, Permanent Human resources clerks, Permanent Human resources related, Permanent Information technology related, Permanent Legal related, Permanent Library mail and related clerks, Permanent Messengers porters and deliverers, Permanent Motor vehicle drivers, Permanent Other administrat & related clerks and organisers, Permanent Other administrative policy and related officers, Permanent Other occupations, Permanent Secretaries & other keyboard operating clerks, Permanent Security guards, Permanent Senior managers, Permanent Youth workers, Permanent TOTAL Department of Co-operative Governance and Traditional Affairs...Annual Report

61 The table below identifies the major reasons why staff left the department. Table Reasons why staff left the department for the period 1 April 2014 and 31 March 2015 Termination Type Number % of Total Resignations Death 5 10 Resignation Expiry of contract 5 10 Dismissal misconduct 2 4 Retirement (Early retirement) 3 6 Transfer to other Public Service Departments 2 4 Total Total number of employees who left as a % of total employment 5.7 Table Promotions by critical occupation for the period 1 April 2014 and 31 March 2015 Occupation Employees 1 April 2014 Promotions to another salary level Salary level promotions as a % of employees by occupation Progressions to another notch within a salary level Notch progression as a % of employees by occupation Administrative related Architects town and traffic planners Cleaners in offices workshops hospitals etc. Client inform clerks(switch receipt inform clerks) Communication and information related Economists Engineering sciences related Finance and economics related Financial and related professionals Financial clerks and credit controllers General legal administration & rel professionals Head of department/chief executive officer Human resources & organisation development & relate prof Human resources clerks Human resources related Information technology related Legal related Library mail and related clerks Messengers porters and deliverers Motor vehicle drivers Other administrat & related clerks and organisers Other administrative policy and related officers Other occupations Secretaries & other keyboard operating clerks Security guards Senior managers Youth workers TOTAL Annual Report Department of Co-operative Governance and Traditional Affairs 58

62 Table Promotions by salary band for the period 1 April 2014 and 31 March 2015 Salary Band Employees 1 April 2014 Promotions to another salary level Salary bands promotions as a % of employees by salary level Progressions to another notch within a salary level Notch progression as a % of employees by salary bands Lower skilled ( Levels 1-2) Skilled (Levels3-5) Highly skilled production (Levels 6-8) Highly skilled supervision (Levels 9-12) Senior Management (Level 13-16) Contract (Levels 1-2), Permanent Contract (Levels 3-5), Permanent Contract (Levels 6-8), Permanent Contract (Levels 9-12), 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 2015 Occupational Categories Male African Male, Coloured Male Indian Male White Female African Female,Coloured Female, Indian Female, White Total Legislators, senior officials and managers, Permanent Professionals, Permanent Technicians and associate professionals, Permanent Clerks, Permanent Plant and machine operators and assemblers, Permanent Elementary occupations, Permanent Other, Permanent TOTAL Employees with disabilities Table Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2015 Occupational Bands Male African Male Coloured Male Indian Male, White Female, African Female, Coloured Female, Indian Female, White Total Top Management, Permanent Senior Management, Permanent Professionally qualified and experienced specialists and mid-management, Permanent Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent Semi-skilled and discretionary decision making, Permanent Unskilled and defined decision making, Permanent Contract (Senior Management), Permanent Contract (Professionally qualified), Permanent Contract (Skilled technical), Permanent Contract (Semi-skilled), Permanent Contract (Unskilled), Permanent TOTAL Department of Co-operative Governance and Traditional Affairs...Annual Report

63 Table Recruitment for the period 1 April 2014 and 31 March 2015 Occupational band Male Female Total African Coloured Indian White African Coloured Indian White Top Management Senior Management Professionally qualified and experienced specialists and mid-management Skilled technical and academically qualified workers, junior management, super- visors, foreman and superintendents Semi-skilled and discretionary decision making Unskilled and defined decision making Total Employees with disabilities Table Promotions for the period 1 April 2014 and 31 March 2015 Occupational band Male Female Total African Coloured Indian White African Coloured Indian White 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 Table Terminations for the period 1 April 2014 and 31 March 2015 Occupational band Male Female Total African Coloured Indian White African Coloured Indian White 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 Table Disciplinary action for the period 1 April 2014 and 31 March 2015 Disciplinary action Male Female Total African Coloured Indian White African Coloured Indian White Poor performance In-subordination Absenteeism Misuse of state property Violation of Section 30 of PSA Total Annual Report Department of Co-operative Governance and Traditional Affairs 60

64 Table Skills development for the period 1 April 2014 and 31 March 2015 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 Signing of Performance Agreements by SMS Members All members of the SMS must conclude and sign performance agreements within specific timeframes. Information regarding the signing of performance agreements by SMS members, the reasons for not complying within the prescribed timeframes and disciplinary steps taken is presented here. Table 3.7.1Signing of Performance Agreements by SMS members as on 31 March 2015 SMS Level Total number of funded SMS posts Total number of SMS members Total number of signed performance agreements Signed performance agreements as % of total number of SMS members Director-General/ Head of Department Salary Level Salary Level Salary Level Salary Level Total Table Reasons for not having concluded Performance agreements for all SMS members as on 31 March 2015 Reasons Table Disciplinary steps taken against SMS members for not having concluded Performance agreements as on 31 March 2015 Reasons 3.8 Performance Rewards To encourage good performance, the department has granted the following performance rewards during the year under review. The information is presented in terms of race, gender, disability, salary bands and critical occupations (see definition in notes below). Table Performance Rewards by race, gender and disability for the period 1 April 2014 and 31 March 2015 Demographics Number of Beneficiaries Total Employment Percentage of Total Employment Cost (R 000) Average Cost per Beneficiary (R) African, Female African, Male Asian, Male Coloured, Male Total Blacks, Female Total Blacks, Male White, Female White, Male Employees with a disability TOTAL Department of Co-operative Governance and Traditional Affairs...Annual Report

65 Table Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2014 and 31 March 2015 Salary Band Number of Beneficiaries Total Employment Percentage of Total Employment Cost (R 000) Average Cost per Beneficiary (R) Skilled (Levels 3-5) Highly skilled production (Levels 6-8) Highly skilled supervision (Levels 9-12) Contract (Levels 1-2) Contract (Levels 3-5) Contract (Levels 6-8) Contract (Levels 9-12) TOTAL Table Performance Rewards by critical occupation for the period 1 April 2014 and 31 March 2015 Critical Occupations Number of Beneficiaries Total Employment Percentage of Total Employment Cost (R 000) Average Cost per Beneficiary (R) Administrative related Agriculture related Architects town and traffic planners Cartographic surveying and related technicians Cleaners in offices workshops hospitals etc Communication and information related Engineering sciences related Engineers and related professionals Finance and economics related Financial and related professionals Financial clerks and credit controllers General legal administration & rel. professionals Head of department/chief executive officer Human resources & organisat developm & relate prof Human resources clerks Human resources related Information technology related Library mail and related clerks Messengers porters and deliverers Motor vehicle drivers Other administrat & related clerks and organisers Other administrative policy and related officers Other occupations Quantity surveyors & rela prof not class elsewhere Rank: Unknown Secretaries & other keyboard operating clerks Senior managers TOTAL Table Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2014 and 31 March 2015 SMS Band Number of Beneficiaries Total Employment Percentage of Total Employment Cost (R 000) Average Cost per Beneficiary (R) % of SMS Wage Bill Personnel Cost SMS (R 000) Band A Band B Band C Band D TOTAL Foreign Workers The tables below summarise the employment of foreign nationals in the department in terms of salary band and major occupation. Annual Report Department of Co-operative Governance and Traditional Affairs 62

66 Table Foreign workers by salary band for the period 1 April 2014 and 31 March 2015 Salary band 01 April March 2015 Change Number % of total Number % of total Number % Change Contract (level 9-12) % Table Foreign workers by major occupation for the period 1 April 2014 and 31 March 2015 Major occupation 01 April March 2015 Change Number % of total Number % of total Number % Change Professionals and managers Leave utilisation The Public Service Commission identified the need for careful monitoring of sick leave within the public service. The following tables provide an indication of the use of sick leave and disability leave. In both cases, the estimated cost of the leave is also provided. Table Sick leave for the period 1 April 2014 and 31 March 2015 Salary band Total days % Days with Medical certification Number of Employees using sick leave % of total employees using sick leave Average days per employee Estimated Cost (R 000) Skilled (levels 3-5) % % Highly skilled production % % (levels 6-8) Highly skilled supervision % % (levels 9-12) Top and Senior management % 7 2.7% (levels 13-16) Contract (Levels 1-2) % 1 0.4% 9 3 Contract (Levels 3-5) 3 100% 1 0.4% 3 2 Contract (Level 9-12) 5 100% 1 0.4% 5 1 Contract (Levels 13-16) 2 100% 1 0.4% 2 6 Total % % Table Disability leave (temporary and permanent) for the period 1 April 2014 and 31 March 2015 Salary band Total days % Days with Medical certification Number of Employees using disability leave % of total employees using disability leave Average days per employee Estimated Cost (R 000) Skilled (Levels 3-5) 2 100% 1 20% 2 1 Highly skilled production % 3 60% (Levels 6-8) Highly skilled supervision 0 0% 0 0% 0 0 (Levels 9-12) Senior management (Levels % 1 20% ) Total % 5 100% The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service. Table Annual Leave for the period 1 April 2014 and 31 March 2015 Salary band Total days taken Number of Employees using annual leave Average per employee Skilled (Levels 3-5) Highly skilled production (Levels 6-8) Highly skilled supervision(levels 9-12) Senior management (Levels 13-16) Contract (Levels 1-2) Contract (Levels 3-5) Contract (Levels 6-8) Contract (Levels 9-12) Contract (Levels 13-16) Total Table Capped leave for the period 1 April 2014 and 31 March 2015 Salary band Total days of capped leave taken Number of Employees using capped leave Average number of days taken per employee Highly skilled supervision(levels 9-12) Average capped leave per employee as on 31 March Department of Co-operative Governance and Traditional Affairs...Annual Report

67 The following table summarise payments made to employees as a result of leave that was not taken. Table Leave payouts for the period 1 April 2014 and 31 March 2015 Reason Total amount (R 000) Number of employees Average per employee (R 000) Leave payout for 2014/15 due to non-utilisation of leave for the previous cycle Capped leave payouts on termination of service for 2014/ Current leave payout on termination of service for 2014/ 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 contracting HIV & related diseases (if any) Key steps taken to reduce the risk 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 to implement No the provisions contained 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 designated Yes Manager specific staff members to promote the health and well-being of your Assistant Manager employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose. Administration officer Not enough budget 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) as contemplated in Part VI E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent. 5. Has the department reviewed its employment policies and practices to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so reviewed. 6. Has the department introduced measures to protect HIV-positive employees or 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 undergo Voluntary Counselling and Testing? If so, list the results that you have you achieved. 8. Has the department developed measures/indicators to monitor & evaluate the impact of its health promotion programme? If so, list these measures/indicators. Yes Yes. Yes Yes Yes Yes HIV and AIDS awareness programmes Educational and Prevention Programmes( Condom distribution) Positive living by Cogta trained champions Support groups and Referral systems HIV Counselling and Testing by GEMS Committee members: Mr IP Chiloane: Employee Health &Wellness Ms NL Malupe: Special Programmes/ EHW Mr B.Simelane: Supply Chain Management Ms N Ndubazi: Legal Services Ms N. Mnisi:MIG Ms A Ngomane: TSC Centres Mr W.Themba; HR Services Mr M. Mbethe: Salaries Mr S Singwane MIG Mr W Themba : Nehawu Ms E Maluleka: Rural Developmen tms Phumzile Nyoni Municipal Administration Ms L Shongwe : LED Ms L Msibi: Communications Mr K Manzini: Public Participation Ms KM Letele: Employee Health and Wellness Ms Smangele Ntuli House of Traditional HIV and AIDS policy Confidential Counselling Confidential referral to relevant doctor Support group for both the infected and affected members to the Provincial clinic GEMS are conducting the tests. The results are available in the wellness office. The statistics cannot be revealed for confidentiality purposes.. A questionnaire on impact assessment is being administered during the last quarter of the year in the Department. After that a report on the findings is being complied and It assist in the planning of the programmes that need to be implemented in the next financial year. Annual Report Department of Co-operative Governance and Traditional Affairs 64

68 3.12 Labour Relations Table Collective agreements for the period 1 April 2014 and 31 March 2015 Total number of Collective agreements The following table summarises the outcome of disciplinary hearings conducted within the department for the year under review. Table Misconduct and disciplinary hearings finalised for the period 1 April 2014 and 31 March 2015 Outcomes of disciplinary hearings Number % of total Final written warning (One month salary suspension) Demotion Dismissal 2 25 Case withdrawn 2 25 Total Table Types of misconduct addressed at disciplinary hearings for the period 1 April 2014 and 31 March 2015 Type of misconduct Number % of total Poor performance In-subordination 2 25 Absenteeism 2 25 Misuse of state property Total Table Grievances logged for the period 1 April 2014 and 31 March 2015 Grievances Number % of Total Number of grievances resolved Number of grievances not resolved Total number of grievances lodged Table Disputes logged with Councils for the period 1 April 2014 and 31 March 2015 Disputes Number % of Total Number of disputes upheld 2 67 Number of disputes dismissed 1 33 Total number of disputes lodged Table Strike actions for the period 1 April 2014 and 31 March 2015 There were no strike actions during the period under review. Table Precautionary suspensions for the period 1 April 2014 and 31 March 2015 Number of people suspended 1 Number of people who s suspension exceeded 30 days 1 Average number of days suspended 80 Cost of suspension(r 000) Skills development This section highlights the efforts of the department with regard to skills development. 65 Department of Co-operative Governance and Traditional Affairs...Annual Report

69 Table Training needs identified for the period 1 April 2014 and 31 March 2015 Occupational category Gender Number of employees Training needs identified at start of the reporting period as at 1 Learnerships Skills Programmes & Other forms April 2014 other short courses of training Total Legislators, senior officials Female and managers Male Professionals Female Male Technicians and associate Female professionals Male Clerks Female Male Service and sales workers Female Male Skilled agriculture and fishery Female workers Male Craft and related trades Female workers Male Plant and machine operators Female and assemblers Male Elementary occupations Female Male Sub Total Female Male Total Table Training provided for the period 1 April 2014 to 31 March 2015 Occupational category Gender Number of employees Training provided within the reporting period as at 1 April 2014 Learnerships Skills Programmes & other short courses Other forms of training Legislators, senior officials and managers Female Male Professionals Female Male Technicians and associate professionals Female Male Clerks Female Male Service and sales workers Female Male Skilled agriculture and fishery workers Female Male Craft and related trades workers Female Male Plant and machine operators and Female assemblers Male Elementary occupations Female Male Sub Total Female Male Total Total 3.14 Injury on duty The following tables provide basic information on injury on duty. Table Injury on duty for the period 1 April 2014 and 31 March 2015 There was no injury on duty reported during the period under review Utilisation of Consultants There were no consultants appointed during the period under review Severance Packages There were no Severance Packages paid during the period under review. Annual Report Department of Co-operative Governance and Traditional Affairs 66

70 PART E: FINANCIAL INFORMATION ANNUAL REPORT Department of Co-operative Governance and Traditional Affairs...Annual Report

71 ANNUAL REPORT REPORT OF THE AUDITOR GENERAL Annual Report Department of Co-operative Governance and Traditional Affairs 68

72 Report of the auditor-general to the Mpumalanga Provincial Legislature on vote no. 4: Department of Co-operative Governance and Traditional Affairs Report on the financial statements Introduction 1. I have audited the financial statements of the Department of Co-operative Governance and Traditional Affairs set out on pages 71 to 113 which comprise the appropriation statement, the statement of financial position as at 31 March 2015, the statement of financial performance, statement of changes in net assets and cash flow statement 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 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, 2014 (Act No. 10 of 2014) (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. 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 Co-operative Governance and Traditional Affairs as at 31 March 2015 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. Report on other legal and regulatory requirements 7. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) 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, non-compliance with legislation as well as 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 8. 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 2015: Programme 2: local governance, on pages 20 to 26 Programme 3: development and planning, on pages 26 to 33 Programme 4: traditional institution management, on pages 33 to I evaluated the reported performance information against the overall criteria of usefulness and reliability. 10. 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. 11. I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete. 12. I did not identify any material findings on the usefulness and reliability of the reported performance information for the following programmes: Programme 2: local governance Programme 3: development and planning Programme 4: traditional institution management Additional matter 13. Although I raised no material findings on the usefulness and reliability of the reported performance information for the selected programmes, I draw attention to the following matter: 69 Department of Co-operative Governance and Traditional Affairs...Annual Report

73 Achievement of planned targets 14. Refer to the annual performance report on pages 17 to 38 for information on the achievement of the planned targets for the year. Compliance with legislation 15. I performed procedures to obtain evidence that the department had complied with applicable legislation regarding financial matters, financial management and other related matters. I did not identify any instances of material non-compliance with specific matters in key legislation, as set out in the general notice issued in terms of the PAA. Internal control 16. I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with legislation. I did not identify any significant deficiencies in internal control. Other reports Investigations 17. An investigation is being conducted by the Special Investigations Unit into alleged irregularities within the department in respect of the water for all flagship project. The investigation was still ongoing at the reporting date. 18. Forty-eight investigations (nine of which were initiated in the current financial year) are being conducted by the Office of the Premier s Integrity Monitoring Unit into alleged supply chain management contraventions, unethical behaviour and financial misconduct by departmental employees. The proceedings are currently in progress. Mbombela 31 July 2015 Annual Report Department of Co-operative Governance and Traditional Affairs 70

74 ANNUAL FINANCIAL STATEMENTS FOR DEPARTMENT OF CO-OPERATIVE GOVERNANCE & TRADITIONAL AFFAIRS For the year ended 31 March 2015 ANNUAL REPORT Department of Co-operative Governance and Traditional Affairs...Annual Report

75 Table of Contents Page No. Statement 73 Notes to the Statement 88 Statement of Financial Performance 89 Statement of Financial Position 90 Statement of Changes in Net Assets 91 Cash Flow Statement 92 Notes to the Annual Financial Statements (including Accounting policies) 93 Annexures 113 Annual Report Department of Co-operative Governance and Traditional Affairs 72

76 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 APPROPRIATION STATEMENT for the year ended 31 March 2015 Adjusted Shifting of Funds Virement per programme 2014/ /14 Final Actual Expenditure Variance Expenditure as % of final appropriation Final Actual Expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Programme 1. Administration (2 985) % % Local Governance 3. Development and (7 318) % Planning 4. Traditional Institutional (1 392) % Management 5. The House of % traditional Leaders Subtotal % Statutory % Members remuneration % TOTAL % / /14 Final Actual Final Actual Expenditure Expenditure TOTAL (brought forward) Reconciliation with statement of financial performance ADD Departmental receipts NRF Receipts Aid assistance Actual amounts per statement of financial performance (total revenue) ADD Aid assistance Prior year unauthorised expenditure approved without funding Actual amounts per statement of financial performance (total expenditure) Department of Co-operative Governance and Traditional Affairs...Annual Report

77 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 APPROPRIATION STATEMENT for the year ended 31 March 2015 per economic classification Adjusted Shifting of Funds 2014/ /14 Virement Final Variance Actual Expenditure Expenditure as % of final appropriation Final Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Economic classification Current payments (691) 100.2% Compensation of employees (367) ( 1 380) % Salaries and wages (450) (2 962) (8) 100.0% Social contributions % Goods and services (715) 100.9% Administrative fees 959 (105) % Advertising (390) (1) 100.1% Minor assets (321) % Audit costs: External (97) % Catering: Departmental (231) (319) 118.0% activities Communication (120) % Computer services (218) % Consultants: Business (1 422) 115.8% and advisory services Infrastructure and planning % - - services Legal services % Contractors (513) % Fleet services Inventory: Clothing material (129) % 96.2% and supplies Inventory: Materials and % supplies Inventory: Other supplies (5 157) % - - Consumable supplies (193) % Consumable: Stationery, printing and office supplies (86) % Operating leases (2 610) % Property payments (580) (249) 106.8% Travel and subsistence (103) 100.6% Training and development (201) % Operating payments (264) % Venues and facilities (568) (166) % Interest and rent on land 17 Interest 17 Transfers and subsidies (8) % Provinces and municipalities (10) % Provinces 50 (10) % Annual Report Department of Co-operative Governance and Traditional Affairs 74

78 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 APPROPRIATION STATEMENT for the year ended 31 March 2015 Aporopriation per economic classification Adjusted Shifting of Funds Virement 2014/15 Final Actual Expenditure Variance Expenditure as % of final appropriation Final Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Provincial agencies and 50 (10) % funds Municipalities % - - Municipal agencies and funds % Departmental agencies and accounts Departmental agencies and accounts % % - - Non-profit institutions (202) % Households % Social benefits % Payments for capital assets Buildings and other fixed structures ,9% (485) (368) % Other fixed structures (485) (368) % % Transport equipment % Other machinery and equipment % Intangible assets % Payments for financial assets Total % Statutory per economic classification 2014/ /14 Adjusted Shifting of Funds Virement Final Actual Expenditure Variance Expenditure as % of final appropriation Final Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R % Economic classification Current payments Compensation of employees Machinery and equipment Total % Department of Co-operative Governance and Traditional Affairs...Annual Report

79 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 APPROPRIATION STATEMENT for the year ended 31 March 2015 Programme 1: ADMINISTRATION Adjusted Shifting of Funds 2014/ /14 Virement Final Actual Variance Expenditure Expenditure as % of final appropriation Final Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Sub programme 1. Office of the MEC % Corporate Services (3 312) % Total for sub programmes (2 985) % 102, Economic classification Current payments (3 555) % Compensation of employees (1 701) (1) 100.0% Salaries and wages (2 931) (22) 100.0% Social contributions % Goods and services (1 854) % Administrative fees % Advertising (356) % Minor assets (321) % Audit costs: External % Catering: Departmental (136) % activities Communication % Computer services (114) % Consultants: Business (36) % and advisory services Legal services % Contractors (509) % Fleet services % Inventory: Clothing (84) % - - material and supplies Consumable supplies % Consumable: Stationery, printing and office supplies (86) % Operating leases (2 610) % Property payments (691) % Transport provided: Departmental activity Travel and subsistence (29) 100.6% Training and development (201) % Operating payments (124) % Venues and facilities (137) % Interest and rent on land 17 Interest 17 Transfers and subsidies % Provinces and municipalities 50 (10) % Provinces 50 (10) % Provincial agencies and 50 (10) % funds Departmental agencies % - - and accounts Departmental agencies % Annual Report Department of Co-operative Governance and Traditional Affairs 76

80 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 APPROPRIATION STATEMENT for the year ended 31 March 2015 Programme1: ADMINISTRATION Adjusted Shifting of Funds Virement Final Actual Expenditure Variance Expenditure as % of final appropriation Final Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Households % Social benefits % Payments for capital % assets Machinery and equipment % Transport equipment % Other machinery and % equipment Intangible assets % Total (2 985) % OFFICE OF THE MEC Adjusted Shifting of Funds 2014/ /14 Virement Final Actual Variance Expenditure Final Actual Expenditure as % of final expenditure appropriation Economic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments % Compensation of employees (202) % Goods and services % Interest and rent on land Total % CORPORATE SERVICES Adjusted Shifting of Funds 2014/ /14 Virement Final Actual Variance Expenditure Final Actual Appropriatioture Expendi- as % of final expenditure appropriation Economic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments (3 882) % Compensation of (1 499) (3) 100.0% employees Goods and services (2 383) % Interest and rent on land - 17 Transfers and subsidies % Provinces and municipalities 50 (10) % Departmental agencies % - - and accounts Households % Payments for capital % assets Machinery and equipment % Intangible assets % Total (3 312) % Department of Co-operative Governance and Traditional Affairs...Annual Report

81 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 APPROPRIATION STATEMENT for the year ended 31 March 2015 Programme 2: LOCAL GOVERNANCE Adjusted Shifting of Funds 2014/ /14 Virement Final Actual Variance Final Expenditure Expenditure as % of final appropriation Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Sub programme 1. Office Support (131) % Municipal Administration % Municipal Finance (4 214) (298) 102.2% Public Participation (13) 100.0% Capacity Development (57) % Municipal Performance Monitoring and Evaluation Total for sub programmes (46) (33) 100.9% % Economic classification Current payments % Compensation of (367) % employees Salaries and wages (450) (8) 100.0% Social contributions % Goods and services % Administrative fees 246 (105) % Advertising % Audit costs: External 950 (97) % Catering: Departmental activities % Communication 557 (120) % Computer services Consultants: Business (137) 101.7% and advisory services Contractors Travel and subsistence % Training and development Operating payments % Venues and facilities 730 (568) % Total % Annual Report Department of Co-operative Governance and Traditional Affairs 78

82 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 APPROPRIATION STATEMENT for the year ended 31 March OFFICE SUPPORT Adjusted Shifting of Funds 2014/ /14 Virement Final Actual Variance Expenditure Final Actual Expenditure as % of final expenditure appropriation Economic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments (131) % Goods and services (172) % Interest and rent on land % Total (131) % MUNICIPAL ADMINISTRATION Adjusted Shifting of Funds 2014/ /14 Virement Final Actual Variance Expenditure Final Actual Appropriatioture Expendi- as % of final expenditure appropriation Economic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments % Compensation of % employees Goods and % services Total % MUNICIPAL FINANCE Adjusted Shifting of Funds Virement 2014/ /14 Final Actual Variance Expenditure Final Actual Appropriatioture Expendi- as % of final expenditure appropriation Economic R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 classification Current payments (4 214) (298) 102.2% Compensation (4 290) % of employees Goods and (304) 103.2% services Total (4 214) (298) 102.2% PUBLIC PARTICIPATION Economic classification Current payments Compensation of employees Goods and services Adjusted Shifting of Funds 2014/ /14 Virement Final Variance Actual Expenditure Expenditure as % of final appropriation Final Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R (13) 100.0% (12) 100.0% (1) 100.0% Total (13) 100.0% Department of Co-operative Governance and Traditional Affairs...Annual Report

83 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 APPROPRIATION STATEMENT for the year ended 31 March CAPACITY DEVELOPMENT Adjusted Shifting of Funds 2014/ /14 Virement Final Actual Variance Expenditure Final Actual Expenditure as % of final expenditure appropriation Economic classification Current payments Compensation of employees Goods and services R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R (57) % % (102) % Total (57) % MUNICIPAL PERFORMANCE MONITORING AND EVALUATION 2014/ /14 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriatiotioture Funds Appropria- Expendi- as % of final Appropria- expenditure appropriation tion Economic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments (46) (33) 100.9% Compensation of (13) 100.4% employees Goods and services 700 (158) (20) 103.7% Total (46) (33) 100.9% Programme 3: DEVELOPMENT AND PLANNING Adjusted Shifting of Funds 2014/ /14 Virement Final Actual Variance Expenditure Final Actual Appropriatioture Expendi- as % of final Appropria- expenditure appropriation tion R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Sub programme 1. Office Support (76) % Spatial Planning (518) % Land Use Management (131) % Integrated Development (793) % and Plan (IDP) 5. Local Economic (373) % Development and Plan (LED) 6. Municipal Infrastructure (539) (262) % Disaster Management (5 165) (248) 101.2% Total for sub programmes (7 318) % Economic classification Current payments (6 950) (957) 101.6% Annual Report Department of Co-operative Governance and Traditional Affairs 80

84 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 APPROPRIATION STATEMENT for the year ended 31 March 2015 Programme 3: DEVELOPMENT AND PLANNING Compensation of employees Adjusted Shifting of Funds 2013/14 Virement Final Actual Variance Expenditure Final Actual Appropriatioture Expendi- as % of final Appropria- expenditure appropriation tion R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R (1 528) % Salaries and wages (1 490) % Social contributions (38) (3) 100.1% Goods and services (5 422) (957) 104.8% Administrative fees (56) % Advertising (34) % Catering: Departmental (95) (4) 101.5% activities Communication (30) (1) 100.4% Computer services (104) % Consultants: Business (190) (977) % and advisory services Infrastructure and % - - planning services Contractors (271) Inventory: Clothing 45 - (45) material and supplies Inventory: Materials % and supplies Inventory: Other (5 157) % - - supplies Consumable supplies (216) % Property payments (269) 342.3% - - Travel and subsistence (38) % Training and development Operating payments (140) % Venues and facilities (29) % Transfers and subsidies Provinces and municipalities % % - - Municipalities % - - Municipal agencies and funds Payments for capital assets Buildings and other fixed structures % (368) % (485) (368) % Other fixed structures (485) (368) % Machinery and equipment Other machinery and equipment % % - - Intangible assets % Total (7 318) % Department of Co-operative Governance and Traditional Affairs...Annual Report

85 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 APPROPRIATION STATEMENT for the year ended 31 March OFFICE SUPPORT Economic classification Current payments Compensation of employees Goods and services Adjusted Shifting of Funds 2014/ /14 Virement Final Actual Variance Expenditure Expenditure as % of final appropriation Final Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R (76) % (107) % % Total (76) % SPATIAL PLANNING Adjusted Shifting of Funds 2014/ /14 Virement Final Actual Variance Final Expenditure Expenditure as % of final appropriation Actual expenditure Economic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments (518) % Compensation of (551) % employees Goods and services % Total (518) % LAND USE MANAGEMENT 2014/ /14 Adjusted Shifting of Funds Virement Final Actual Expenditure Variance Expenditure as % of final appropriation Final Actual expenditure Economic classification Current payments Compensation of employees Goods and services R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R (131) % (13) % (118) % Payments for capital assets Intangible assets % % 200 Total (131) `% Annual Report Department of Co-operative Governance and Traditional Affairs 82

86 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 APPROPRIATION STATEMENT for the year ended 31 March INTEGRATED DEVELOPMENT AND PLANNING Adjusted Shifting of Funds 2014/ /14 Virement Final Actual Variance Expenditure Expenditure as % of final appropriation Final Actual expenditure Economic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments (793) % Compensation of (617) % employees Goods and services (176) % Payments for financial assets Total (793) % LOCAL ECONOMIC DEVELOPMENT (LED) 2014/ /14 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Funds Expenditure as % of final appropriation expenditure Economic R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 classification Current payments (373) % Compensation (322) (5) 100.1% of employees Goods and (51) % services Total (373) % MUNICIPAL INFRASTRUCTURE Adjusted Shifting of Funds 2014/ /14 Virement Final Actual Variance Expenditure Final Actual Appropriatioture Expendi- as % of final Appropria- expenditure appropriation tion Economic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments (1 005) 125.0% Compensation of employees % Goods and services (123) (1 005) 295.5% Transfers and subsidies % - - Provinces and municipalities % - - Payments for capital (539) (368) % assets Buildings and other fixed (539) (368) % structures Total (539) (262) % Department of Co-operative Governance and Traditional Affairs...Annual Report

87 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 APPROPRIATION STATEMENT for the year ended 31 March DISASTER MANAGEMENT Adjusted Shifting of Funds Virement 2014/ /14 Final Variance Actual Expenditure Expenditure as % of final appropriation Final Actual expenditure Economic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments (5 165) (265) 101.3% Compensation of employees (147) % Programme 4: TRADITIONAL INSTITUTIONAL MANAGEMENT 2014/ /14 Adjusted Goods and services (5 018) (266) 101.8% Payments for % capital assets Buildings and other % fixed structures Machinery and % - - equipment Total (5 165) (248) 101.2% Shifting of Funds Virement Final Actual Expenditure Variance Expenditure as % of final appropriation Final Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Sub programme 1. Office Support % Traditional Institution (4 365) (109) 100.6% Administration 3. Traditional Resource % Administration 4. Rural Development (1 541) % Facilitation 5. Traditional Land Administration (242) % Total for sub programmes (1 392) % Economic classification Current payments (1 190) % Compensation of employees (1 457) % Salaries and wages (1 489) % Social contributions % Goods and services % Administrative fees % Advertising (83) 0.0% - - Catering: Departmental % activities Communication % Computer services Contractors (75) 128.1% Travel and subsistence (318) 110.7% Training and development Operating payments % Venues and facilities % Transfers and subsidies (202) % Non-profit institutions (202) % Total (1 392) % Annual Report Department of Co-operative Governance and Traditional Affairs 84

88 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 APPROPRIATION STATEMENT for the year ended 31 March OFFICE SUPPORT Adjusted Shifting of Funds 2014/ /14 Virement Final Actual Variance Final Appropriatioture Expendi- Expenditure as % of final appropriation Actual expenditure Economic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments % Compensation of % employees Goods and services % Total % TRADITIONAL INSTITUTIONAL ADMINISTRATION 2014/ /14 Adjusted Shifting of Virement Final Actual Variance Final Funds Expenditure Expenditure as % of final appropriation Actual expenditure Economic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments (4 365) (109) 100.6% Compensation of employees (4 632) % Goods and services (110) 104.6%% Total (4 365) (109) 100.6% TRADITIONAL RESOURCE ADMINISTRATION Adjusted Shifting of Funds 2014/ /14 Virement Final Actual Variance Expenditure Final Actual Appropriatioture Expendi- as % of final Appropria- expenditure appropriation tion Economic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments % Compensation of employees % Goods and services (4) 100.7% Transfers and subsidies (202) % Non-profit institutions (202) % Total % RURAL DEVELOPMENT FACILITATION Adjusted Shifting of Funds 2014/ /14 Virement Final Actual Variance Expenditure Final Actual Appropriatioture Expendi- as % of final Appropri- expenditure appropriation ation Economic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments (1 541) % Compensation of employees (1 541) % Goods and services % Total (1 541) % Department of Co-operative Governance and Traditional Affairs...Annual Report

89 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 APPROPRIATION STATEMENT for the year ended 31 March TRADITIONAL LAND ADMINISTRATION Shifting of Funds Adjusted Virement 2014/ /14 Final Actual Expenditure Variance Expenditure as % of final appropriation Final Actual expenditure Economic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments (242) % Compensation of (242) % employees Goods and services % Total (242) % Programme 5: THE HOUSE OF TRADITIONAL LEADERS 2014/ /14 Adjusted Shifting of Funds Virement Final Actual Expenditure Variance Final Sub programme 1. Admin House of Traditional Leaders 2. Committees and Local Houses Total for sub programmes Expenditure as % of final appropriation Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R (857) % (314) 103.8% % Economic classification Current payments % Compensation of employees % Salaries and wages (103) (2) 100.0% Social contributions % Goods and services % Administrative fees % Advertising % Catering: Departmental (370) 208.8% activities Communication % Consultants: Business and (321) 207.0% - - advisory services Contractors % Travel and subsistence % Operating payments % Venues and facilities % Total % Annual Report Department of Co-operative Governance and Traditional Affairs 86

90 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 APPROPRIATION STATEMENT for the year ended 31 March ADMIN HOUSE OF TRADITIONAL LEADERS Adjusted Shifting of Funds Virement 2014/ /14 Final Actual Expenditure Variance Expenditure as % of final appropriation Final Actual expenditure Economic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments (857) % Compensation of (857) % employees Goods and services % Total (857) % COMMITTES AND LOCAL HOUSES Adjusted Shifting of Funds 2014/ /14 Virement Final Actual Variance Final Appropriatioture Expendi- Expenditure as % of final appropriation Actual expenditure Economic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments (314) 103.8% Compensation of % employees Goods and services (315) 110.1% Total (314) 103.8% Department of Co-operative Governance and Traditional Affairs...Annual Report

91 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March Detail of transfers and subsidies as per Act (after Virement): Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-C) 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 ) to the Annual Financial Statements. 3. Detail on payments for financial assets Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual Financial Statements. 4. Explanations of material variances from Amounts Voted (after Virement): 4.1 Per programme Final Actual Expenditure Variance R 000 Variance as a % of Final Programme 1 Administration % Immaterial variance Programme 2 : Local Governance % Immaterial variance Programme 3 : Development and Planning % Under spending is to due unpaid retention fees for Water Reservoir project and construction of Traditional Council offices projects which were still in progress at financial year end. The Department has submitted a roll over request for unspent funds to pay the committed outstanding retention fees and for completion of the Traditional Council offices to the Provincial Treasury. Programme 4 :Traditional Institutional Management Immaterial variance Programme 5: The House of Traditional Leaders % % Immaterial variance TOTAL % 4. Explanations of material variances from Amounts Voted (after Virement): 4.2 Per economic classification Final Actual Expenditure Variance Variance as a % of Final R 000 R 000 R 000 R 000 Current payments (691) (0.2) Compensation of employees % Goods and services (715) (1%) Transfers and subsidies % Provinces and municipalities % Departmental agencies and accounts % Non-profit institutions % Households % Payments for capital assets % Buildings and other fixed structures % Machinery and equipment % Intangible assets and software % Total % 4.3 Per conditional grant Final. Actual Expenditure Variance R 000 R 000 R 000 R 000 Variance as a % of Final EPWP % Annual Report Department of Co-operative Governance and Traditional Affairs 88

92 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 STATEMENT OF FINANCIAL PERFORMACE for the year ended 31 March 2015 Note 2014/ /14 R 000 R 000 REVENUE Annual appropriation Statutory appropriation Departmental revenue TOTAL REVENUE EXPENDITURE Current expenditure Compensation of employees Goods and services Interest and rent on land 6-17 Total current expenditure Transfers and subsidies Transfers and subsidies Total transfers and subsidies Expenditure for capital assets Tangible assets Intangible assets Total expenditure for capital assets Payments for financial assets TOTAL EXPENDITURE SURPLUS/(DEFICIT) FOR THE YEAR Reconciliation of Net Surplus/(Deficit) for the year Voted funds Annual appropriation Conditional grants - - Departmental revenue and NRF Receipts SURPLUS/(DEFICIT) FOR THE YEAR Department of Co-operative Governance and Traditional Affairs...Annual Report

93 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 STATEMENT OF FINANCIAL POSITION for the year ended 31 March 2015 ASSETS Note 2014/ /14 R 000 R 000 Current assets Unauthorised expenditure Cash and cash equivalents Receivables Non-current assets Receivables TOTAL ASSETS LIABILITIES Current liabilities Voted funds to be surrendered to the Revenue Fund Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund Payables TOTAL LIABILITIES NET ASSETS - - Note 2014/ /14 R 000 R 000 Represented by: Recoverable revenue - - TOTAL - - Annual Report Department of Co-operative Governance and Traditional Affairs 90

94 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 STATEMENT OF CHANGES IN NET ASSETS for the year ended 31 March 2015 Note 2014/ /14 R 000 R 000 Recoverable revenue - Opening balance 6 - Transfers: Debts recovered (included in departmental receipts) (6) - Debts raised - 6 Closing balance Department of Co-operative Governance and Traditional Affairs...Annual Report

95 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 CASH FLOW STATEMENT for the year ended 31 March 2015 CASH FLOWS FROM OPERATING ACTIVITIES Note 2014/ /14 R 000 R 000 Receipts Annual appropriated funds received Statutory appropriated funds received Departmental revenue received 3.1& Interest received Net (increase)/decrease in working capital (794) (15 299) Surrendered to Revenue Fund (30 943) (19 092) Surrendered to RDP Fund/Donor - - Current payments ( ) ( ) Interest paid 6-17 Payments for financial assets - (175) Transfers and subsidies paid (22 815) (13 469) Net cash flow available from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Payments for capital assets 9 (32 343) (23 088) Proceeds from sale of capital assets Net cash flows from investing activities (32 320) (22 701) CASH FLOWS FROM FINANCING ACTIVITIES Increase/(decrease) in net assets - (6) Net cash flows from financing activities - (6) Net increase/(decrease) in cash and cash equivalents (26 230) (5 967) Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Annual Report Department of Co-operative Governance and Traditional Affairs 92

96 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2015 Summary of significant accounting policies The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. The historical cost convention has been used, except where otherwise indicated. 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 (PFMA), 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. 3 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 financial figures have been rounded to the nearest one thousand Rand (R 000). 5 Foreign currency translation Cash flows arising from foreign currency transactions are translated into South African Rands using the exchange rates prevailing at the date of payment / receipt. 6 Comparative information 6.1 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. 6.2 Current year comparison with budget A comparison between the approved, final budget and actual amounts for each programme and economic classification is included in the appropriation statement. 7 Revenue 7.1 Appropriated funds Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation). Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the statement of financial performance on the date the adjustments become effective. The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognised as a payable / receivable in the statement of financial position. 7.2 Departmental revenue Departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the relevant revenue fund, unless stated otherwise. Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the statement of financial position. 7.3 Accrued departmental revenue Accruals in respect of departmental revenue (excluding tax 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 receivable. Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents. 8 Expenditure 8.1 Compensation of employees Salaries and wages Salaries and wages are recognised in the statement of financial performance on the date of payment. 93 Department of Co-operative Governance and Traditional Affairs...Annual Report

97 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March Social contributions Social contributions made by the department in respect of current employees are recognised in the statement of financial performance on the date of payment. Social contributions made by the department in respect of ex-employees are classified as transfers to households in the statement of financial performance on the date of payment. 8.2 Other expenditure Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of financial performance on the date of payment. The expense is classified as a capital expense if the total consideration paid is more than the capitalisation threshold. 8.3 Accrued expenditure payable Accrued expenditure payable is recorded in the notes to the financial statements when the goods are received or, in the case of services, when they are rendered to the department. Accrued expenditure payable is measured at cost. 8.4 Leases Operating leases 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 notes to the financial statements Finance leases 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 the 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. 9 Aid Assistance 9.1 Aid assistance received Aid assistance received in cash is recognised 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 unutilised funds from aid assistance that are required to be refunded to the donor are recognised as a payable in the statement of financial position. 9.2 Aid assistance paid Aid assistance paid is recognised in the statement of financial performance on the date of payment. Aid assistance payments made prior to the receipt of funds are recognised as a receivable in the statement of financial position. 10 Cash and cash equivalents Cash and cash equivalents are stated at 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. 11 Prepayments and advances Prepayments and advances are recognised in the statement of financial position when the department receives or disburses the cash. Prepayments and advances are initially and subsequently measured at cost. 12 Loans and receivables Loans and receivables are recognised in the statement of financial position at cost plus accrued interest, where interest is charged, less amounts already settled or written-off. 13 Investments Investments are recognised in the statement of financial position at cost. 14 Impairment of financial assets Where there is an indication of impairment of a 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 expected to be received from that asset, is recorded in the notes to the financial statements. 15 Payables Loans and payables are recognised in the statement of financial position at cost. 16 Capital Assets Annual Report Department of Co-operative Governance and Traditional Affairs 94

98 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March Immovable capital assets Immovable capital assets are initially recorded in the notes 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 determined 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) may be recorded at R1. Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment. Subsequent expenditure that is of a 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 in which case the completed project costs are transferred to that department Movable capital assets Movable capital assets are initially recorded in the notes 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 accurately, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable 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. Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment. Biological assets are subsequently carried at fair value. Subsequent expenditure that is of a 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 costs are transferred to that department 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. Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment. Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the intangible asset is recorded by another department/entity in which case the completed project costs are transferred to that department. 17 Provisions and Contingents 17.1 Provisions Provisions 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 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 17.3 Contingent assets Contingent assets are recorded in the notes to the financial statements when a 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 17.4 Commitments Commitments are recorded at cost in the notes to the 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 95 Department of Co-operative Governance and Traditional Affairs...Annual Report

99 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March Unauthorised expenditure Unauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either: approved by Parliament or the Provincial Legislature with funding and the 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. Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure. 19 Fruitless and wasteful expenditure Fruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred. 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 are de-recognised when settled or subsequently written-off as irrecoverable. 20 Irregular expenditure Irregular expenditure is recorded in the notes 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-recognised when settled or subsequently written-off as irrecoverable. 21 Changes in accounting policies, accounting estimates and errors Changes in accounting policies that are effected by management have been applied retrospectively 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 change in policy. In such instances the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable. Changes in accounting estimates are applied prospectively in accordance with MCS requirements. 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. In such cases the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable. 22 Events after the reporting date Events after the reporting date that are classified as adjusting events have been accounted for in the financial statements. The events after the reporting date that are classified as non-adjusting events after the reporting date have been disclosed in the notes to the financial statements. 23 Agent-Principal arrangements There were no Agent-Principal arrangements during the period under review 24 Departures from the MCS requirements There were no departures from the MCS requirements during the period under review. 25 Capitalisation reserve The capitalisation reserve comprises of financial assets and/or liabilities originating in a prior reporting period but which are recognised in the statement of financial position for the first time in the current reporting period. Amounts are recognised in the capitalisation reserves when identified in the current period and are transferred to the National/Provincial Revenue Fund when the underlying asset is disposed and the related funds are received 26 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. 27 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. 28 Inventories (Effective from 1 April 2016) 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. Annual Report Department of Co-operative Governance and Traditional Affairs 96

100 1. Annual (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March Annual Included are funds appropriated in terms of the Act (and the Adjustments Act) for National Departments (Voted funds) and Provincial Departments: Final 2014/ /14 Actual Funds Funds not Received requested/ not received received R 000 R 000 R 000 R 000 Administration Local Governance Development and Planning Traditional Institutional Management House of Traditional Leaders Total Conditional grants Note 2014/ /14 R 000 R 000 Total grants received Provincial grants included in total grants received Statutory 2014/ /14 R 000 R 000 Statutory Actual Statutory received Department of Co-operative Governance and Traditional Affairs...Annual Report

101 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE ANNUAL FINNCIAL STATEMENTS for the year ended 31 March Departmental revenue Note 2014/ /14 R 000 R 000 Sales of goods and services other than capital assets Interest, dividends and rent on land Sales of capital assets Transactions in financial assets and liabilities Transfer received Total revenue collected Less: Own revenue included in appropriation - Departmental revenue collected Sales of goods and services other than capital assets Sales of goods and services produced by the department Note 2014/ /14 3 R 000 R Sales by market establishment Sales of scrap, waste and other used current - 6 goods Total Interest, dividends and rent on land Note 2014/ /14 3 R 000 R 000 Interest Sale of capital assets Note 2014/ /14 3 R 000 R 000 Tangible assets Machinery and equipment Total Transactions in financial assets and liabilities Note 2014/ /14 3 R 000 R 000 Receivables Stale cheques written back 5 11 Other Receipts including Recoverable Revenue Total Annual Report Department of Co-operative Governance and Traditional Affairs 98

102 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March Compensation of employees 4.1 Salaries and Wages Note 2014/ /14 R 000 R 000 Basic salary Performance award Service Based Compensative/circumstantial Periodic payments Other non-pensionable allowances Total Social contributions Note 2014/ /14 R 000 R 000 Employer contributions Pension Medical Bargaining council Total Total compensation of employees Average number of employees Goods and services Note 2014/ /14 R 000 R 000 Administrative fees Advertising Minor assets Catering Communication Computer services Consultants: Business and advisory services Infrastructure and planning services Legal services Contractors Agency and support / outsourced services Audit cost external Fleet services Inventory Consumables Operating leases Property payments Travel and subsistence Venues and facilities Training and development Other operating expenditure Total Department of Co-operative Governance and Traditional Affairs...Annual Report

103 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March Minor assets Note 2014/ /14 5 R 000 R 000 Tangible assets Machinery and equipment Intangible assets 2 5 Software Total Computer service Note 2014/ /14 5 R 000 R 000 SITA computer services External computer service providers Total Audit cost External Note 2014/ /14 5 R 000 R 000 Regularity audits Performance audits - - Investigations Total Inventory Note 2014/ /14 5 R 000 R 000 Clothing material and accessories 25 - Materials and supplies Total Consumables Note 2014/ /14 5 R 000 R 000 Consumable supplies Uniform and clothing Household supplies Building material and supplies - 7 IT consumables Other consumables 83 - Stationery, printing and office supplies Total Annual Report Department of Co-operative Governance and Traditional Affairs 100

104 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March Property payments Note 2014/ /14 5 R 000 R 000 Municipal services Total Travel and subsistence Note 2014/ /14 5 R 000 R 000 Local Foreign - - Total Other operating expenditure Note 2014/ /14 5 R 000 R 000 Resettlement costs Other Total Interest and rent on land Note 2014/ /14 R 000 R 000 Interest paid Payments for financial assets Note 2014/ /14 R 000 R 000 Debts written off Debts written off Nature of debts written off Note 2014/ /14 7 R 000 R 000 Irrecoverable debtors Department of Co-operative Governance and Traditional Affairs...Annual Report

105 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March Transfers and subsidies 2014/ /14 R 000 R 000 Note Provinces and municipalities Departmental agencies and accounts Annex 1A 3 - Non-profit institutions Annex 1B Households Annex 1C Total Expenditure for capital assets Note 2014/ /14 R 000 R 000 Tangible assets Buildings and other fixed structures Ann Machinery and equipment Intangible assets Software Total Analysis of funds utilised to acquire capital assets 2014/15 Voted funds Total R 000 R 000 Tangible assets Buildings and other fixed structures Machinery and equipment Intangible assets Software Total Analysis of funds utilised to acquire capital assets 2013/14 Voted funds Total R 000 R 000 Tangible assets Buildings and other fixed structures Machinery and equipment Intangible assets Software Total Annual Report Department of Co-operative Governance and Traditional Affairs 102

106 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March Unauthorised expenditure 10.1 Reconciliation of unauthorised expenditure Note 2014/ /14 R 000 R 000 Opening balance Prior period error - - As restated - - Unauthorised expenditure discovered in current year (as restated) - - Less: Amounts approved by Parliament/Legislature with funding - - Less: Amounts transferred to receivables for recovery - - Unauthorised expenditure awaiting authorisation / written off Analysis of unauthorised expenditure awaiting authorisation per economic classification 2014/ /14 R 000 R 000 Capital Analysis of unauthorised expenditure awaiting authorisation per type 2014/ /14 R 000 R 000 Unauthorised expenditure relating to overspending of the vote or a main division within a vote Cash and cash equivalents Note 2014/ /14 R 000 R 000 Consolidated Paymaster General Account Receivables Note Less than one year 2014/ /14 R 000 R 000 R 000 R 000 R 000 One to three years Older than three years Total Total Staff debt Fruitless & Wasteful expenditure Other debtors Total Department of Co-operative Governance and Traditional Affairs...Annual Report

107 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March Staff debt Note 2014/ /14 12 R 000 R 000 Staff debtors Other debtors Note 2014/ /14 12 R 000 R 000 Ex- Employee Suppliers Other 5 3 Total Fruitless and wasteful expenditure Note 2014/ /14 12 R 000 R 000 Transfers from note 24 Fruitless and Wasteful Expenditure Voted funds to be surrendered to the Revenue Fund Note 2014/ /14 R 000 R 000 Opening balance Prior period error - - As restated Transfer from statement of financial performance (as restated) Paid during the year (29 154) (17 343) Closing balance Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund Note 2014/ /14 R 000 R 000 Opening balance Prior period error - - As restated Transfer from Statement of Financial Performance (as restated) Paid during the year (1 789) (1 749) Closing balance Annual Report Department of Co-operative Governance and Traditional Affairs 104

108 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March Payables current Note 2014/ /14 R 000 R 000 Clearing accounts Clearing Accounts Note 2014/ /14 15 R 000 R 000 Description Sal: ACB Recall Sal: Income Tax Disallowance Miscellaneous 3 - Sal: Pension 1 - Total Net cash flow available from operating activities Note 2014/ /14 R 000 R 000 Net surplus/(deficit) as per Statement of Financial Performance Add back non cash/cash movements not deemed operating 583 (11 690) activities (Increase)/decrease in receivables current (238) 794 Increase/(decrease) in payables current (556) (16 093) Proceeds from sale of capital assets (23) (387) Expenditure on capital assets Surrenders to Revenue Fund (30 943) (19 092) Net cash flow generated by operating activities Reconciliation of cash and cash equivalents for cash flow purposes Note 2014/ /14 R 000 R 000 Consolidated Paymaster General account Contingent liabilities and contingent assets 18.1 Contingent liabilities Note 2014/ /14 Nature R 000 R 000 Housing loan guarantees Employees Annex 2A Claims against the department Annex 2B Intergovernmental payables (unconfirmed balances) Annex Total Department of Co-operative Governance and Traditional Affairs...Annual Report

109 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March Commitments Note 2014/ /14 R 000 R 000 Current expenditure Approved and contracted Capital expenditure Approved and contracted Total Commitments Accruals and payables not recognised Listed by economic classification 2014/ /14 R 000 R Days 30+ Days Total Total Goods and services Listed by programme level Administration Note 2014/ /14 R 000 R Local Governance Development and Planning Traditional Institutional Management The House of Traditional Leaders Total Note 2014/ /14 R 000 R 000 Confirmed balances with other departments Annex Employee benefits Note 2014/ /14 R 000 R 000 Leave entitlement Service bonus (Thirteenth cheque) Performance awards Capped leave commitments Other ( Long-term service Award ) Total Annual Report Department of Co-operative Governance and Traditional Affairs 106

110 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) 22. Lease commitments 22.1 Operating leases expenditure VOTE 04 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March /15 Specialised military equipment Land Buildings and other fixed structures Machinery and equipment Total R 000 Not later than 1 year Later than 1 year and not later than 5 years Total lease commitments /14 Specialised military equipment Land Buildings and other fixed structures Machinery and equipment Total R 000 Not later than 1 year Later than 1 year and not later than 5 years Total lease commitments Irregular expenditure 23.1 Reconciliation of irregular expenditure Note 2014/ /14 R 000 R 000 Opening balance Prior period error - - As restated Less: Prior year amounts condoned - (836) Closing balance Analysis of awaiting condonation per age classification Prior years Total Fruitless and wasteful expenditure 24.1 Reconciliation of fruitless and wasteful expenditure Note 2014/ /14 R 000 R 000 Opening balance Prior period error - - As restated Fruitless and wasteful expenditure relating to current year Less: Amounts resolved (23) (87) Less: Amounts transferred to receivables for recovery 12.3 (4) - Fruitless and wasteful expenditure awaiting resolution Department of Co-operative Governance and Traditional Affairs...Annual Report

111 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March Analysis of awaiting resolution per economic classification 2014/ /14 R 000 R 000 Current Analysis of Current year s fruitless and wasteful expenditure Incident Disciplinary steps taken/criminal proceedings 2014/15 Accommodation R will be recovered in instalments with effect from 01/04/2015 recorded in the debt book. R Related party transactions During the year the department receives services from the Department of Public Works, Roads and Transport that are related to the department. The department occupies a Government building in the province provided by the department of Public Works, Roads and Transport free of charge. The department also receives IT services from the Department of Finance free of charge. The department also received shared services for Internal Audit and Audit Committee from the Office of the Premier free of charge. 26. Key management personnel No. of Individuals 2014/ /14 R 000 R 000 Political office bearers Level 15 to Level 14 (incl. CFO if at a lower level) Total Movable Tangible Capital Assets MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015 Opening balance Additions Disposals Closing Balance R 000 R 000 R 000 R 000 MACHINERY AND EQUIPMENT Transport assets Computer equipment Furniture and office equipment Other machinery and equipment TOTAL MOVABLE TANGIBLE CAPITAL ASSETS Annual Report Department of Co-operative Governance and Traditional Affairs 108

112 27.1 Additions (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2015 Cash Non-cash Received current, not paid Total (Paid current year, received prior year) R 000 R 000 R 000 R 000 MACHINERY AND EQUIPMENT (55) Transport assets Computer equipment (55) 994 Furniture and office equipment Other machinery and equipment TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS (55) Disposals DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015 Sold for cash Transfer out or destroyed or scrapped Total disposals Cash Received Actual R 000 R 000 R 000 R 000 MACHINERY AND EQUIPMENT Transport assets Computer equipment Furniture and office equipment Other machinery and equipment TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS Movement for 2013/14 MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014 Opening Prior period Additions Disposals Closing Balance balance error R 000 R 000 R 000 R 000 R 000 MACHINERY AND EQUIPMENT (1 565) Transport assets Computer equipment Furniture and office equipment Other machinery and equipment (2 221) TOTAL MOVABLE TANGIBLE CAPITAL ASSETS (1 565) Department of Co-operative Governance and Traditional Affairs...Annual Report

113 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March Prior period error 2013/14 R 000 Nature of prior period error (1 565) Tents,Flags and Accessories (Reclassified as Consumable) (2 221) Motor vehicle 656 Total (1 565) 28.1 Minor assets MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015 Intangible assets Machinery and Total equipment R 000 R 000 R 000 Opening balance Additions Disposals - (556) (556) TOTAL MINOR ASSETS Intangible assets Machinery and equipment Total Number of R1 minor assets Number of minor assets at cost TOTAL NUMBER OF MINOR ASSETS Minor assets MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014 Machinery and Intangible assets Heritage assets equipment Total R 000 R 000 R 000 R 000 Opening balance Prior period error - (33) 7 (26) Additions Disposals TOTAL MINOR ASSETS Machinery and Intangible assets Heritage assets equipment Total Number of minor assets at cost TOTAL NUMBER OF MINOR ASSETS Annual Report Department of Co-operative Governance and Traditional Affairs 110

114 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES 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 2015 Opening balance Additions Disposals Closing Balance R 000 R 000 R 000 R 000 SOFTWARE TOTAL INTANGIBLE CAPITAL ASSETS Additions Cash Total R 000 R 000 SOFTWARE TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS Movement for 2013/14 Opening balance Additions Closing Balance R 000 R 000 R 000 SOFTWARE TOTAL INTANGIBLE CAPITAL ASSETS ADDITIONS ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015 Cash Non-cash (Capital work-inprogress current costs and finance lease payments) Received current, not paid (Paid current year, received prior year Total R 000 R 000 R 000 R 000 R 000 BUILDINGS AND OTHER FIXED STRUCTURES (28 690) - - Other fixed structures (28 690) - - TOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS (28 690) Department of Co-operative Governance and Traditional Affairs...Annual Report

115 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2015 MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2014 Opening balance Prior period error Current Year Capital WIP Completed Assets Closing balance R 000 R 000 R 000 R 000 R 000 BUILDINGS AND OTHER FIXED STRUCTURES Other fixed structures TOTAL STATEMENT OF CONDITIONAL GRANTS RECEIVED GRANT ALLOCATION SPENT 2014/15 NAME OF DEPART- MENT Division of Revenue Act/ Provincial Grants Roll Overs DORA Adjustments Other Adjustments Total Available Amount received by department Amount spent by department Under / (Overspending) % of available funds spent by department Division of Revenue Act Amount spent by department R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 EPWP % % STATEMENT OF CONDITIONAL /UNCONDITIONAL GRANTS PAID TO MUNICIPALITIES NAME OF MUNICIPAL- ITY Division of Revenue Act GRANT ALLOCATION Roll Overs Adjustments Total Available Actual Transfer TRANSFER Funds Withheld Re-allocations by National Treasury or National Department R 000 R 000 R 000 R 000 R 000 R 000 R 000 Gert Sibande Vehicle licenses Annual Report Department of Co-operative Governance and Traditional Affairs 112

116 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 NOTES/ UNAUDITED ANNEXTURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March TRANSFER OF FUNCTIONS The Mpumalanga Department of COGTA received Land Use Management function from the MP DARLA at the beginning of the year () financial year. The Accounting Officer of MP COGTA did received Assets including Personnel and Other commitments related to the function received. Disclosure Notes Note Bal per dept 2014/15AFS before transfer Functions per dept Functions per dept Functions per dept 2014/15Bal after transfer (transferred) / received (transferred) / received (transferred) / received 2014/ / / / /15 R 000 R 000 R 000 R 000 R 000 Movable tangible capital assets Movable tangible Minor assets The two Accounting Officers have signed the inventory off all transferred assets as per section 42 of the PFMA ANNEXURE 1A STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS DEPARTMENT/ AGENCY/ AC- COUNT Total Available TRANSFER ALLOCATION TRANSFER 2013/14 Adjusted Roll Adjustments Actual Appro-priation Overs Transfer Act % of Available funds Transferred R 000 R 000 R 000 R 000 R 000 % R 000 SABC % % - ANNEXURE 1B STATEMENT OF TRANSFERS TO NON-PROFIT INSTITUTIONS NON-PROFIT INSTITUTIONS Adjusted Act TRANSFER ALLOCATION EXPENDITURE 2013/14 Roll overs Adjustments Total Available Actual Transfer % of Available funds transferred Act R 000 R 000 R 000 R 000 R 000 % R 000 Injury on Duty Traditional Institution Management % Total % Department of Co-operative Governance and Traditional Affairs...Annual Report

117 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 UNAUDITED ANNEXTURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2015 ANNEXURE 1C STATEMENT OF TRANSFERS TO HOUSEHOLDS HOUSEHOLDS Adjusted Act TRANSFER ALLOCATION EXPENDITURE 2013/14 Roll Adjustments Total Actual % of Overs Available Transfer Available Act funds Transferred R 000 R 000 R 000 R 000 R 000 % R 000 Transfers Injury on Duty % Leave Gratuity % 793 Total % 793 ANNEXURE 1D STATEMENT OF ACTUAL MONTHLY EXPENDITURE PER GRANT Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Total Grant Type R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 Other (EPWP ) ANNEXURE 2A STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2014 LOCAL Guarantor institution First National Bank Guarantee in respect of Original guaranteed capital amount Opening balance 1 April 2014 Guarantees draw downs during the year Guarantees repayments/ cancelled/ reduced/ released during the year Revaluations Closing balance 31 March 2015 Guaranteed interest for year ended 31 March 2015 Realised losses not recoverable i.e. claims paid out R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 Housing Standard Bank TOTAL Annual Report Department of Co-operative Governance and Traditional Affairs 114

118 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 UNAUDITED ANNEXTURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2015 ANNEXURE 2B STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2015 Nature of Liability Opening Balance 1 April 2014 Liabilities incurred during the year Liabilities paid/ cancelled/reduced during the year Liabilities recoverable (Provide details hereunder) Closing Balance 31 March 2015 R 000 R 000 R 000 R 000 R 000 Claims against the department African Gaza Church Stesashan Sphephelo vs MEC and HOD SN Thwala(NNO)&3 Others vs MEC and Mbombela Municipality TOTAL ANNEXURE 3 CLAIMES RECOVERABLE Government Entity Department Confirmed balance outstanding Unconfirmed balance outstanding Total Cash in transit at year end 2014/15 31/03/ /03/ /03/ /03/ /03/ /03/2014 Receipt date Amount up to six (6) working days after year end R 000 R 000 R 000 R 000 R 000 R 000 R 000 MP Human of Settlement Limpopo Department of Health National Rural Development and Land Reform TOTAL Department of Co-operative Governance and Traditional Affairs...Annual Report

119 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 UNAUDITED ANNEXTURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2015 ANNEXURE 4 INTER-GOVERNMENT PAYABLES GOVERNMENT ENTITY DEPARTMENTS Current MP:Department of Public Works MP:Department of Human Settlement Confirmed balance outstanding Unconfirmed balance outstanding TOTAL Cash in transit at year end 2014/15 31/03/ /03/ /03/ /03/ /03/ /03/2014 Payment date up to six (6) working days before year end Amount R 000 R 000 R 000 R 000 R 000 R 000 R Department of Co-Operative Governance and Traditional Affairs Total OTHER GOVERNMENT ENTITY Current Rand Water Displeasing Municipality Traditional Leaders Subtotal Total ANNEXURE 5 INVENTORIES Inventory Note Quantity 2014/15 Quantity 2013/14 R 000 R 000 Opening balance Add/(Less): Adjustments to prior year balance Add: Additions/Purchases Cash Add: Additions - Non-cash (Less): Disposals - - (355) (234) (Less): Issues (2 172) (107) (58 240) (576) Add/(Less): Adjustments (409) (1) - 3 Closing balance Annual Report Department of Co-operative Governance and Traditional Affairs 116

120 (MP: CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS) VOTE 04 UNAUDITED ANNEXTURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2015 ANNEXURE 6 MOVEMENT IN CAPITAL WORK IN PROGRESS MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2015 Opening balance Current Year Capital WIP Completed Assets Closing balance R 000 R 000 R 000 R 000 BUILDINGS AND OTHER FIXED STRUCTURES Dwellings Non-residential buildings Other fixed structures TOTAL MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2014 HERITAGE ASSETS BUILDINGS AND OTHER FIXED STRUCTURES Opening balance Prior period error Current Year Capital WIP Completed Assets Closing balance R 000 R 000 R 000 R 000 R Dwellings Non-residential buildings Other fixed structures TOTAL Department of Co-operative Governance and Traditional Affairs...Annual Report

121 ANNUAL REPORT Annual Report Department of Co-operative Governance and Traditional Affairs Department of Co-operative Governance and Traditional Affairs

122 Designed by Communications: Production and Publications HEAD OFFICE Building No.6 & 7 Riverside Government Complex Mbombela 1200 POSTAL ADDRESS Private Bag X Mbombela 1200 CONTACT NUMBER Tel: (013) Fax: (013) /2 WEBSITE DISASTER TOLL FREE PR249/2015 ISBN: Department of Co-operative Governance and Traditional Affairs...Annual Report