Contents PART A GENERAL INFORMATION PART D - HUMAN RESOURCES REPORT. 1. Foreword By The MEC Report of The Accounting Officer 5-9

Together, Moving Gauteng City Region Forward Hotline: 08600 11000 www.gautengonline.gov.za

Contents PART A GENERAL INFORMATION 1. Foreword By The MEC 4 2. Report of The Accounting Officer 5-9 3. Strategic Overview 10 4. Legislative and other Mandates 11 PART D - HUMAN RESOURCES REPORT 1. Introduction 39 2. Overview of Human Resources 39 3. Human Resources Oversight Statistics 40-58 5. Organisational Structure of The E-Government 12 PART E - PART B - PERFORMANCE REPORT 1. Overview of Departmental Performance 14-15 2. Strategic Outcome Oriented Goals 15-16 3. Performance Information By Programme 17-29 4. Outlook For The Coming Financial Year (2016/17) 29-30 1. Report of the Auditor General 60 2. Statement 62 3. Notes To The Statement 83 4. Statement of Financial Performance 84 5. Statement of Financial Position 85 PART C - GOVERNANCE 1. Introduction 32 2. The Governance of Risk 32 3. Embedding Risk Management 32 4. Fraud and Corruption 32 5. Portfolio Committees 33-35 6. Statement of Changes In Net Assets 86 7. Cash Flow Statement 87 8. Accounting Policies 88 9. Notes To The Annual Financial Statements 93 10. Annexures To The Annual Financial Statements 123 6. Audit Committee Report 36-37

LIST OF ABBREVIATIONS/ACRONYMS APP BAS BEE CFO DPSA ERM e-gov GBN GCR GCIO GEYODI GPG HOD HRD HRM ICT IYM M&E MEC MTBPS MTEF MTSF MTSF OHS PFMA PMDS POA SAP SLA SMME SMS Annual Performance Plans Basic Accounting System Black Economic Empowerment Chief Financial Officer Department of Public Service and Administration Enterprise Risk Management Gauteng Department of e-government Gauteng Broadband Network Gauteng City Region Gauteng Chief Information Officer Gender Youth and People with Disabilities Gauteng Provincial Government Head of Department Human Resource Development Human Resource Management Information Communication Technology In-year Monitoring Monitoring and Evaluation Member of Executive Committee Medium Term Budget Policy Statement Medium Term Expenditure Framework MTSF Medium Term Strategic Framework MTSF Medium Term Strategic Framework Occupational Health and Safety Public Finance Management Act Performance Management and Development System Programme of Action Report System Application Product Service Level Agreement Small Micro and Medium Enterprises Senior Management Services 2

GENERAL INFORMATION PART A GENERAL INFORMATION 1. Foreword By The MEC 4 2. Report of The Accounting Officer 5-9 3. Strategic Overview 10 4. Legislative and other Mandates 11 5. Organisational Structure of The E-Government 12

1. FOREWORD BY THE MEC In our quest to provide e-services to enhance delivery, we assisted the Gauteng Provincial Treasury to automate supplier self-registration enabling small businesses to work with government more efficiently. The Gauteng Department of Infrastructure Development now enables contractors and infrastructure personnel to interact online. This reduces travel time and ensures important decisions related to building projects are taken timeously. Furthermore, we developed an e-recruitment system to help citizens access government job opportunities online or through the Thusong Centres located in their communities. In the year under review, the Department entered into partnerships with the public and private sectors to increase ICT skills amongst the youth. These partnerships include software development training and mentoring through the Joburg Centre for Software Engineering (JCSE), the Gauteng Innovation Hub s and ekasi Labs in Ga-Rankuwa and Soweto. Ms Barbara Creecy Member of the Executive Council- Finance We are conscious today that advances in technology offer governments across the globe the possibility of re-shaping how we exercise our mandate. Guided by the National Development Plan, the Gauteng Provincial Government has established the Department of e-government to modernize governance and the delivery of services. The Skills for Africa Academy is an internship programme aimed at developing SAP software skills for the private and public sectors. Currently, 60 interns have been trained and the Department of e-government has absorbed 19 of these learners. This programme will continue in the next financial year. I would like to extend my gratitude to our Head of Department, Mr Boy Ngobeni and his team, in driving the initiatives of the Premier s vision in modernising the public service and improving service delivery to the citizens of Gauteng. This contributes to realising Premier David Makhura s vision of modernising the delivery of public services, and enhancing citizen s participation in the decision making processes of the state. As the Gauteng City Region we are committed to better coordinate resources across three spheres of government and leverage private partnerships to improve the speed and quality of public services delivered to citizens by making them available online. Ms Barbara Creecy Member of the Executive Council - Finance To connect citizens to our services, we continue to rollout the Gauteng Broadband Network. During the 2015/16 financial year we made significant strides in connecting all provincial government buildings, including regional satellite offices, Thusong Centres, hospitals, and schools through the roll out of more than 1500 km of fibre cables across the province. In addition, the three metros have rolled out 2252 kms of fibre optics to connect various government entities. 4

GENERAL INFORMATION 2. REPORT OF THE ACCOUNTING OFFICER To realise Gauteng s strategic intent, various initiatives have been implemented to modernise the public service, including consolidating back-end systems and processes to bring about better service delivery. The Department of e-government drives its mandate in modernizing the public service and the economy through Information and Communications Technologies (ICTs). We have continuously engaged partners and stakeholders to share knowledge and experiences in this space. As part of this process we hosted the Gauteng ICT e-government Summit in 2015 to provide a platform to evaluate the progress made by the Gauteng Provincial Government in implementing the Gauteng City Region (GCR) e-government Strategy. The Gauteng Department of e-government has developed a set of strategic objectives to realise a connected government. These strategic objectives are: Mr Boy Ngobeni Accounting Officer 2.1 Overview of the Operations of the Department Policy decisions and strategic issues facing the Department By order of the President of the Republic of South Africa, Mr. Jacob Zuma, and in line with Section (5) (b) of the Public Service Act, 1994, the Department of e-government was proclaimed on 11 August 2015. The Department, during the 2015/16 financial year, was required to review its programmes, plans and budget to ensure alignment with the revised mandate of the newly proclaimed Department of e-government and thus necessitated the revision of the Department s targets in its 2015/16 Annual Performance Plan. During the year under review, the Gauteng Department of e-government made significant strides in creating a connected government which is central to the new Administration s vision of Transformation, Modernization, and Re-industrialization. To build an enabling ICT infrastructure for the GCR connected government. To create the enabling platform and support services to enable GCR entities to design, develop and deliver e-government services. To establish a GCR e-government governance structure to drive priorities, policies, standards and regulations. To promote the usage of e-government services (Citizens, Business and Government Entities). To stimulate the ICT economy through facilitating incubation and innovation as well as encouraging public private partnerships for the development and roll-out of e-government services. Collectively, the strategic objectives support the delivery of a connected government, improve the ease of citizens doing business with government resulting in improved efficiencies and increased collaboration with the private sector. Since we are a new department, we seek to leverage on international experience in the delivery of e-government. In this regard, we aim to model our ICT service delivery in line with countries like Portugal, Spain, Switzerland, Austria and Germany who have successfully travelled this journey. 5

A number of key milestones were achieved in line with the mandate of the Department. The Department has developed and adopted ICT Frameworks and Strategies to facilitate the modernization of the public service. These included a Common Platform concept document; the Business Intelligence Strategy; the Technology Architecture Framework and the Communication and Change Management Framework. The Department successfully developed the GCR ICT Master Systems Plan Framework to improve ICT planning throughout the Gauteng City Region. The implementation of the framework will reduce duplication of business processes, systems and resources and this will allow the GCR to leverage on economies of scale. The Gauteng Government has recognised the fact that ICT has a key role to play in service delivery improvement. In this context it is important to consider the continuity of services when facing many types and severities of service disruptions or disasters. We have therefore established an ICT Continuity Management Framework to minimise business disruptions. We have developed an Applications Strategy to ensure that all applications within GCR can be used for similar business functions and assist with the eradication of duplicate applications. A total of 263 government sites were connected to enable the roll out and implementation of e-government services and to improve the internal operation efficiencies of these sites. The Department migrated 5 GPG departments into the GPG cloud. The departments migrated were the Gauteng Department of Economic Development, the Gauteng Department of Agriculture and Rural Development, the Gauteng Department of Infrastructure Development, the Gauteng Department of Sports, Arts Culture and Recreation and the Gauteng Department of Co-operative Governance and Traditional Affairs. Furthermore, 11 economic zones were connected. We established an e-recruitment system to help citizens access government opportunities. Through the Maponya Mall Professional Job Centre we have created access to available GPG vacancies for up to 9220 job seekers. The Department implemented a functional mobile leave and claims management system for the Gauteng Department of e-government and Gauteng Treasury. The following interfaces were automated to improve turnaround times and operational efficiencies; Payments of over a million Rand now have a direct interface with the provincial banker The Employee Exits were interfaced into the national system to reduce ex-employee overpayments In addition, the Department is collaborating with the Innovation Hub, Harambee and the Sci Bono Discovery Centre to incubate and train youth entrepreneurs in the ICT field. The Department has established the following key strategic partnerships: With Wits University for the development and operationalization of the Design and Validation Centre to realise ICT innovations and efficiencies With SAP South Africa for internship training for unemployed youth in the Province. These initiatives are implemented to address the challenges in promoting township economies and the market failures that undermine the growth of the township economy. In order to enable interdepartmental calling capability within the GBN network at no cost, the Department connected 22 Thusong Centres. Also, 105 digital schools were provided with broadband connectivity that will enable the roll out of the e-learning solution. 6

GENERAL INFORMATION 2.2 Overview of the financial results of the department: 2.2.1 Departmental receipts The Departmental revenue is generated from parking fees, the commission on garnishee orders, gym fees, the sale of tender documents and debtors receipts. Departmental Receipts Estimate Actual Amount Collected 2015/2016 2014/2015 (Over)/Under Collection Estimate Actual Amount Collected (Over)/Under Collection R 000 R 000 R 000 R 000 R 000 R 000 Sale of goods and services other than capital assets 744 572 172 975 850 55 Interest, dividends and rent on land 10 11 (1) 16 15 1 Financial transactions in assets and liabilities 160 1 224 (1064) 150 1 285 (1 135) Total 914 1 807 (893) 961 2 150 (1 189) Reasons for (Over) / under collection The under-collection under the sale of goods and services revenue line item is as a result of the electronic availing of tender documents, which has enabled prospective vendors to download documents as opposed to collecting hard copies. Historically, the Department s revenue generation from this revenue item came about from providing hard copies of the tender documents to prospective suppliers at a fee. Both the transfer of the tender administration functions out of the Department of e-government and the electronic solution have had the net effect of reducing revenue from this line item. The over collection on financial transactions in assets and liabilities is as a result of the recoveries of the prior year debt from current employees, ex-employees and suppliers. 2.2.2 Programme Expenditure Programme Name 2015/2016 2014/2015 Final Actual Expenditure (Over)/ Under Expenditure Final Actual Expenditure (Over)/Under Expenditure R 000 R 000 R 000 R 000 R 000 R 000 Administration 193 023 173 053 19 970 223 806 191 385 32 421 ICT Shared Services Business Process Services Gauteng Audit services 902 955 900 977 1 978 998 382 992 175 6 207 82 825 82 023 802 159 200 155 395 3 805 - - - 56 376 53 198 3 178 Total 1 178 803 1 156 053 22 750 1 437 764 1 392 153 45 611 Reasons for under spending Under-spending was, in the main, a function of certain projects, namely, the refurbishment of 75 Fox Street, the conversion of the canteen into office space and the SAP functional upgrade, that were initiated but not completed by the end of the 2015/16 financial year. COMPENSATION OF EMPLOYEES Under-spending in the compensation of employees resulted from funded vacant posts. 7

GOODS AND SERVICES The Administration programme underspent on goods and services due to the following projects that had not been completed by the end of the financial year: Refurbishment of 75 Fox Street Revamping of the canteen and its conversion into office space The ICT Services programme underspent on goods and services due to the SAP functional upgrade project that was pending completion at the end of the financial year. 2.2.3 Virements and Roll-over Adjusted Actual Spending Virements Final Programme Name R 000 R 000 R 000 R 000 Administration 197 289 173 053 (4 266) 193 023 ICT Shared Services 894 758 900 976 8 197 902 955 Business Process Services 86 756 82 023 (3 931) 82 825 TOTAL 1 178 803 1 156 052-1 178 803 Virements An amount of R8.2 million was shifted from the compensation of employees from the Administration and Business Process Services programmes to cater for the connection of additional sites as part of the Gauteng Broadband Network (GBN) rollout project. Rollover The Department has applied to rollover R17.5 million from the 2015/16 financial year to the 2016/17 financial year for projects that were initiated but had not been completed by the end of the financial year under review. Administration R15.6 million for revamping of Imbumba house ICT Shared services R1.9 million for the SAP functional upgrade 2.2.4 Reasons for unauthorised, fruitless and wasteful expenditure The Department did not incur any unauthorised, fruitless and wasteful expenditure in the 2015/16 financial year. 2.2.5 Future plans of the department The Department plans to implement the organizational structure in line with the new mandate. 2.2.6 Public Private Partnerships The Department did not participate in any PPP activities during the period under review. 8

GENERAL INFORMATION 2.2.7 Discontinued activities / activities to be discontinued N/A 2.2.11 Exemptions and deviations received from the National Treasury There were no exemptions or deviations in the year under review. 2.2.8 New or proposed departmental activities The Department continues to ensure alignment of its strategic plans and APP to the revised mandates. 2.2.9 Supply chain management No proposals for unsolicited bids were implemented by the Department during the period under review. The Department performed an audit of all contracts to ensure that Supply Chain Management processes were followed. Furthermore the SCM systems have been strengthened to avoid occurrence of any event or activities resulting in irregular expenditure due to non-compliance with the legal framework governing supply chain management overall. 2.2.12 Acknowledgement/s or Appreciation I would like to convey my gratitude to MEC Creecy for her guidance, leadership and support throughout the year. My thanks goes to the management team of the Department of e-government for their unqualified support during this period. My appreciation also goes out to the staff members of the Department who have demonstrated their commitment to excellence in the public service. Conclusion The Annual Financial Statements as set out on page 63 to 130 have been approved by the Accounting Officer. 2.2.10 Gifts and Donations received in kind from non-related parties No gifts were received from non-related parties in the 2015/16 financial year. Mr Boy Ngobeni Accounting Officer Department of e-government 9

3. STRATEGIC OVERVIEW 3.1 Vision The Gauteng Department of e-government has set for itself the following vision: A connected Gauteng City Region that leverages technology to provide quality services to citizens. 3.2 Mission In order to achieve its vision, the Department aimed to realise the intent of a connected government through: The provision of relevant technologies, standards and governance; The creation of an environment of collaboration between key stakeholders; Facilitation of the evolution of Gauteng City Regions service delivery. 3.3 Values Excellence: To incrementally, systematically and consistently enhance frontline service delivery. Growth: To constantly innovate and seek new opportunities. Openness: To be customer centric and thrive to improve high levels of service to the public. Value for Money: To provide services at costs affordable to the citizens of Gauteng. 3.4 Strategic Objectives The key strategic objectives of the Department are: To build an enabling ICT infrastructure for the GCR connected government. To create the enabling platform and support services to enable GCR entities to design, develop and deliver e-government services. To establish a GCR e-government governance structure to drive priorities, policies, standards and regulations. To promote the usage of e-government services (Citizens, Business and Government Entities). To stimulate the ICT economy through facilitating incubation and innovation as well as encouraging public private partnerships for the development and roll-out of e-government services. Main Services The main services of the Department were delivered by ensuring that the Department operationalised the provincial GCR e-government Strategy 2015-2020. In order to achieve this, the Department assumed the 5 strategic pillars of the Strategy as its strategic objectives. This was done to ensure a focused approach to service delivery by the Department to the citizens of the province. The five strategic pillars of the GCR e-government Strategy 2015-2020 are the following: Pillar 1: To build an enabling ICT infrastructure for the GCR connected government. Pillar 2: To create the enabling platform and support services to enable GCR entities to design, develop and deliver e-government Services. Pillar 3: To establish a GCR e-government governance structure to drive priorities, policies, standards and regulations. Pillar 4: To promote usage of e-government services (Citizens, Businesses and Government Entities). Pillar 5: To stimulate the ICT economy through facilitating incubation and innovation as well as encouraging public private partnerships for the development and roll-out of e-government services. 10

GENERAL INFORMATION 4. LEGISLATIVE AND OTHER MANDATES The Gauteng Department of e-government derives its mandate from the following Legislation: Legislation The Constitution of the Republic of South Africa (Act 108 of 1996) Public Administrative and Management Act (Act 11 of 2014) Preferential Procurement Policy Framework Act (2000) What it means The Mandate of and environment within which National, Provincial and Local Government Financial Departments and Treasuries operate, is specifi cally described in Chapter 13: General Financial Matters To promote the basic values and principles governing the public administration referred to in section 195(1) of the Constitution and provide for the use of information and communication technologies in the public administration Provides a framework for the implementation of preferential procurement policy. Promotion of Access to Information Act (Act 2 of 2000) Public Finance Management Act, 1999 (Act 1 of 1999) Public Service Act, 1994 (Act 103 of 1994) Gauteng Tender Board Repeal Act, 2002 Occupational Health and Safety Act, 1995 The National Archives Act, 1996 Public Service laws Amendment Act, 1997 Coporate Governance of ICT Policy Framework Government Wide Enterprise Architecture Framework Minimum Information Interoperability Standards Minimum Information Security Standards Promotion of Administrative Justice Act, 2000 Prevention and Combating of Corrupt Activities Act, 2004 Government Employees Pension Law, 1996 and 2004 amendment Electronic Communications Act, 2005 To give effect to the constitutional right of access to any information held by the State and any information that is held by another person and that is required for the exercise or protection of any rights; and to provide for matters connected therewith. Regulates fi nancial management in the Department to ensure that all revenue, expenditure, assets and liabilities of the Department are managed effi ciently and effectively; to provide for the responsibilities of persons entrusted with fi nancial management in the Department and to provide for matters connected therewith. To fulfi l all Department responsibilities with respect to other departments and public entities. Provides for the organisation and administration of the Department and for human resource management which includes the regulation of conditions of employment, terms of offi ce, discipline, retirement and discharge of staff members of the Department and matters connected therewith. Gives effect to new procurement reform initiatives in Gauteng. Provides a framework for the standards and requirements for workplaces, facilities and employee health and safety. Provides for the archiving and storage and accessibility of information, and for the manner in which government bodies store documents, papers and records Regulates the functions and conditions of service of heads of provincial departments and the conditions of service of heads of organisational components; provides for the appointment of persons on the grounds of policy considerations; and makes provisions in connection with ineffi ciency and misconduct Maps out how governance of ICT within government entities is to be applied, structured and implemented Is intended to supersede the prevailing Enterprise Architecture and ICT planning frameworks and methods in use in government The main thrust of the framework is the adoption of the structured approach, and to ensure the enhancement of interoperability across Government Provides security measures against unauthorised access to classifi ed information Gives effect to the right to administrative action that is lawful, reasonable and procedurally fair and to the right to written reasons for administrative action as contemplated in section 33 of the Constitution of the Republic of South Africa. The Prevention and Combating of Corrupt Activities Act makes corruption a crime. It covers anyone working for government (such as Ministers, department staff, and the police) and people outside of government (like someone working for a business). Gives effect to frameworks that governs pension fund contributions, management and pay-outs for employees in South Africa. The National broadband Policy follows government s decision to build an all-inclusive information society 11

5. ORGANISATIONAL STRUCTURE OF THE e-government MEMBER OF THE EXECUTIVE COUNCIL Ms Barbara Creecy HEAD OF DEPARTMENT Mr Boy Ngobeni BRANCH: ICT: SHARED SERVICES CHIEF DIRECTORATE: FINANCIAL MANAGEMNET CHIEF DIRECTORATE: HUMAN RESOURCE SERVICES BRANCH: CORPORATE MANAGEMENT 12

PART B - PERFORMANCE REPORT 1. Overview of Departmental Performance 14-15 2. Strategic Outcome Oriented Goals 15-16 3. Performance Information By Programme 17-29 4. Outlook For The Coming Financial Year (2016/17) 29-30

1. OVERVIEW OF DEPARTMENTAL PERFORMANCE 1.1 Service Delivery Environment In line with the provincial Ten Pillar Transformation, Modernisation and Re-industrialisation (TMR) programme, which highlights the importance of radical transformation of the state and governance and the modernisation of the public service in the Gauteng City Region, the Gauteng Department of e-government aims to create a connected Gauteng City Region that leverages technology to provide quality services to its citizens as a catalyst for sustainable economic growth by promoting effective, efficient and customer centric processes across government. The Department has therefore committed to the continued rollout of the Gauteng Broadband Network (GBN) and the creation of a Common Technological Platform for the delivery of e-services. It is widely accepted that there is a close correlation between infrastructure investment in Information and Communication Technology (ICT) and the modernisation of the economy as well as improved delivery of social services to citizens. Accordingly, an increase in broadband capability is accompanied by an increase in economic growth and job opportunities. The Department is therefore focussed on improving government efficiency and saving costs by connecting citizens to the GBN Network through the Thusong Centres as well as providing connectivity to priority townships and the economic regeneration zones across the province. In order to fulfil this mandate and to support the implementation of the TMR, the Department is actively implementing the GCR e-government Strategy 2015-2020 that is based on five strategic pillars, namely: To build an enabling ICT infrastructure for the GCR connected government. To create the enabling platform and support services to enable GCR entities to design, develop and deliver e-government Services. To establish a GCR e-government governance structure to drive priorities, policies, standards and regulations. To promote usage of e-government services (Citizens, Businesses and Government Entities). To stimulate the ICT economy through facilitating incubation and innovation as well as encouraging public private partnerships for the development and roll-out of e-government services. 1.2 Service Delivery Improvement Plan The table below highlights the service delivery achievements. Main services and standards Main services Beneficiaries Current/actual standard of service Desired standard of service Actual achievement Information Communication Technology (ICT) Shared Services Gauteng City Region (GCR) N/A 8 GBN core Sites built. 8 GBN core Sites built. Batho Pele arrangements with beneficiaries (Consultation access etc.) Current/actual arrangements Desired arrangements Actual achievements Quarterly Service Level Agreement Performance Reporting 4 Service Level Agreement Performance Reporting 4 Service Level Agreement Performance Reports. Service delivery information tool Current/actual information tools Desired information tools Actual achievements Access information documented on the approved Department of e-government Service Charter 2015/16. 1 approved e-gov Service Charter 2015/16 displayed on access points and Intranet 1 approved e-gov Service Charter 2015/16 displayed on access points and Intranet 14

PERFORMANCE REPORT Complaints mechanism The Gauteng Department of e-government uses the GPG centralized complaint management systems i.e. the SAP CRM System. Current/actual complaints mechanism Desired complaints mechanism Actual achievements SAP CRM System SAP CRM System Resolved 88% of complaints 1.3 Organisational Environment The key objectives of the Department are based on the provincial GCR e-government Strategy 2015-2020. The key pillars of the strategy are the same as the strategic goals of the Department in order to ensure a focused approach to service delivery by the Department to the citizens of the province. In order to realise the delivery of the strategy, the Department has undertaken a consultative process to align its activities, strategic outputs and outcomes to the provincial Ten Pillar programme of Transformation, Modernisation and Re-industrialisation (TMR) and to ensure that the requisite institutional capacity is in place for the Department to deliver on its mandate. 2. STRATEGIC OUTCOME ORIENTED GOALS The Department, in line with the Medium Term Expenditure Framework, supports the Outcomes approach adopted by government. The outcomes for 2014 to 2019 are published as annexures to the Medium Term Strategic Framework and are an expression of government s Programme of Action. The Gauteng Department of e-government contributes directly to Outcome 12 i.e. An Efficient, Effective and Development Oriented Public Service and an Empowered, Fair and Inclusive Citizenship. In addition, the Department also supports each of the other outcomes through the implementation of its goals and objectives. With regard to the required institutional capacity, the Department was officially proclaimed by the President, Mr. Jacob Zuma, in August 2015 and the process of determining the organisational structure to support the mandate of the Department, was undertaken. The process for the finalisation of the structure is underway. The contents of this Annual Report, 2015/16, is based on the work done to realize the mandate of the Department as articulated by its strategic objectives, pillars and values. 15

Please see the table below for the alignment: No. MTSF Outcomes Impact e-gov. Contribution 1. Quality basic education Social inclusion Invest in Gauteng Broadband 2. A long and healthy life for all and cohesion 3. All people in South Africa are and feel safe 7. Vibrant, equitable, sustainable rural communities contributing to food security for all 4. Decent employment through inclusive growth Equitable growth Facilitate an ICT economy 5. Skilled and capable workforce to support an inclusive growth path that leverages off broadband 6. An efficient, competitive and responsive economic infrastructure network 11. Creating a better South Africa and contributing to a better and safer Africa in a better world 8. Sustainable human settlements and improved quality of Sustainable Digitisation of back office 10. household life Protect and enhance our environmental assets and natural resources development and infrastructure 9. Responsive, accountable, effective and efficient local government system 12. An efficient, effective and development oriented public service Good governance Create regulatory and enabling environment and systems for sound corporate governance of ICT in GPG 13. Social Protection 16

PERFORMANCE REPORT 3. PERFORMANCE INFORMATION BY PROGRAMME 1. PROGRAMME 1 ADMINISTRATION Sub - Programme 1: Office of the HOD Purpose: To improve internal efficiencies in order to realize better front-line service delivery Strategic Objective: To provide strategic leadership support to the Department Strategic objectives, performance indicators, planned targets and actual achievements Sub-Programme Name: Office of the HOD Strategic objectives Actual Achievement 2014/2015 Planned Target 2015/2016 Actual Achievement 2015/2016 Deviation from planned target to Actual Achievement for 2015/2016 Comment on deviations To provide strategic leadership support to the department Submitted 12 Programme of Action Reports to the Office of the Premier within agreed time frames 12 Programme of Action Reports submitted to the Office of the Premier within agreed time frames Submitted 12 Programme of Action Reports to the Office of the Premier within agreed time frames Targets Achieved 4 GEYODI reports submitted to Office of the Premier 4 GEYODI reports submitted to the Office of the Premier Submitted 4 GEYODI reports to Office of the Premier Targets Achieved Resolved 38 (100%) of Legislature matters within agreed time frames 100% Legislature matters resolved/ managed Resolved 100% of Legislature matters within agreed time frames Targets Achieved Reasons for deviations 17

Performance indicators Sub-Programme Name: Office of the HOD Performance Indicator Actual Achievement 2014/2015 Planned Target 2015/2016 Actual Achievement 2015/2016 Deviation from planned target to Actual Achievement for 2015/2016 Comment on deviations Number of Program of Action Reports submitted to the Office of the Premier Submitted 12 Programme of Action Reports to the Office of the Premier within agreed time frames 12 Programme of Action Reports to be submitted to the Office of the Premier Submitted 12 Programme of Action Reports to the Office of the Premier within agreed time frames Targets Achieved Number of GEYODI reports submitted to Office of the Premier 4 GEYODI reports submitted to Office of the Premier 4 GEYODI reports to be submitted to the Office of the Premier Submitted 4 GEYODI reports to Office of the Premier Targets Achieved % of Legislature matters resolved within agreed time frames Resolved 38 (100%) of Legislature matters within agreed time frames 100% of Legislature matters resolved/ managed Resolved 100% of Legislature matters within agreed time frames Targets Achieved Reasons for deviations: Strategy to overcome areas of under performance: Changes to planned targets: Sub - Programme 2: Risk Management Purpose: To improve internal efficiencies in order to realize better front-line service delivery Strategic objective: To provide strategic leadership support to the Department Strategic objectives, performance indicators, planned targets and actual achievements Sub- Programme Name: Risk Management Strategic objective Actual Achievement 2014/2015 Planned Target 2015/2016 Actual Achievement 2015/2016 Deviation from planned target to Actual Achievement for 2015/2016 Comment on deviations To provide strategic leadership support to the department The Risk Management policy and Framework was reviewed and approved by 31 March 2015 Reviewed and approved E-Government Risk Management Strategy by 30 June 2015 The e-government Risk Management Strategy was reviewed and approved Target Achieved 18

PERFORMANCE REPORT Performance indicators Sub- Programme Name: Risk Management Performance Indicator Actual Achievement 2014/2015 Planned Target 2015/2016 Actual Achievement 2015/2016 Deviation from planned target to Actual Achievement for 2015/2016 Comment on deviations Reviewed and approved e-government Risk Management Framework by 30 June 2015 The Risk Management Framework was reviewed and approved by 31 March 2015 Reviewed and approved e-government Risk Management Strategy by 30 June 2015 The e-government Risk Management Strategy was reviewed and approved Target Achieved Reasons for deviation: Strategy to overcome areas of under performance: Changes to planned targets: Sub - Programme 3: Office of the CFO Purpose: To improve internal efficiencies in order to realize better front-line service delivery Strategic objectives: To provide strategic leadership support to the Department Strategic objectives, performance indicators, planned targets and actual achievements Sub- Programme Name: Office of the CFO Strategic objective Actual Achievement 2014/2015 Planned Target 2015/2016 Actual Achievement 2015/2016 Deviation from planned target to Actual Achievement for 2015/2016 Comment on deviations To provide strategic leadership support to the department 98% of suppliers were paid within 30 working days from receipt of invoices 100% of suppliers paid within 30 days of receipt of invoice Paid 96% of suppliers within 30 working days from receipt of invoices 4% below target There was a scheduled system shutdown during the December vacation period which resulted in delayed payments. The Department has implemented a system aimed at ensuring strict adherence to supply chain processes 19

Performance indicators Sub-programme: Office of the CFO Performance Indicator Actual Achievement 2014/2015 Planned Target 2015/2016 Actual Achievement 2015/2016 Deviation from planned target to Actual Achievement for 2015/2016 Comment on deviations % of suppliers paid within 30 working days of receipt of invoices 98% of suppliers were paid within 30 working days from receipt of invoices 100% of suppliers paid within 30 working days from receipt of invoices Paid 96% of suppliers within 30 working days from receipt of invoices 4% below target There was a scheduled system shutdown during the December vacation period which resulted in delayed payments. The department has implemented a system aimed at ensuring strict adherence to supply chain processes. Reasons for deviations There was a scheduled system shutdown during the December vacation period which resulted in delayed payments. Strategy to overcome areas of under performance The Department has implemented a system aimed at ensuring strict adherence to supply chain processes and compliance to submissions of invoices in order to prevent delayed payments. Changes to planned targets Sub - Programme 4: Corporate Management Purpose: To improve internal efficiencies in order to realize better front-line service delivery Strategic Objective: To provide strategic leadership support to the Department Strategic objectives, performance indicators, planned targets and actual achievements Sub -Programme: Corporate Management Strategic objectives Actual Achievement 2014/2015 Planned Target 2015/2016 Actual Achievement 2015/2016 Deviation from planned target to Actual Achievement for 2015/2016 Comment on deviations To provide strategic leadership support to the department Reviewed and approved Human Resource Plan submitted to DPSA by 30 June 2014 Reviewed and approved Human Resource Plan submitted to DPSA by 30 June 2015 Reviewed and approved Human Resource Plan submitted to DPSA by 30 June 2015 Target Achieved Vetted 100% of (2) SMS and SCM staff security 100% of SMS and SCM staff security to be vetted Vetted 100% of SMS and SCM staff security Target Achieved Handled 0 litigation matters within stipulated court time frames 100% of litigation matters handled within stipulated court time frames No litigation matters received during the Financial Year Approved and published Annual Report by 31 August 2014 Achieved 96% Compliance to the e-government s Batho Pele Service Standards Approved and published Annual Report by 31 August 2015 96% compliance to the e-government Service Standards The Annual Report was approved and published by 31 August 2015 Achieved 96% compliance to the e-government Service Standards Target Achieved Target Achieved The business case was developed for automation of performance information Automated performance information system deployed The Automated performance information system was deployed Target Achieved Reasons for deviations 20

PERFORMANCE REPORT Performance indicators Sub-programme: Corporate Management Performance Indicator Actual Achievement 2014/2015 Planned Target2015/2016 Actual Achievement 2015/2016 Deviation from planned target to Actual Achievement for 2015/2016 Comment on deviations Reviewed and submitted the Human Resource Plan to DPSA by 30 June 2015 Reviewed and submitted Human Resource Plan to DPSA by 30 June 2014 Reviewed and submitted Human Resource Plan submitted to DPSA by 30 June 2015 Approved and submitted Human Resource Plan to DPSA by 03 June 2015 Target Achieved % of SMS and SCM staff security vetted Vetted 100% of (2) SMS and SCM staff security 100% of SMS and SCM staff security vetted Vetted 100% of SMS and SCM staff security Target Achieved Approved and published Annual Report by 31 August 2014 The Annual Report was Approved and published on 31 August 2014 Approved and published Annual Report by 31 August 2015 The Annual Report was approved and published by 31 August 2015 Target Achieved % compliance to the e-government Service Standards Achieved 96% Compliance to the e-government s Batho Pele Service Standards 96% compliance to the e-government Service Standards Achieved 96% compliance to the e-government Service Standards Target Achieved Automated performance information system deployed The business case was developed for automation of performance information Automated performance information system deployed The Automated performance information system was deployed Target Achieved % of litigation matters handled within stipulated court time frames Handled 0 litigation matters within stipulated court time frame 100% of litigation matters handled within stipulated court time frames No litigation matters received during the Financial Year Reasons for deviations Strategy to overcome areas of under performance Changes to planned targets 21

Linking performance with budgets PR1: ADMINISTRATION Final Actual Expenditure (Over)/ Under Expenditure 2015/2016 2014/2015 % Budget Spent Final Actual Expenditure (Over)/Under Expenditure % Budget Spent R 000 R 000 R 000 % R 000 R 000 R 000 % COMPENSATION OF EMPLOYEES 97 498 96 152 1 346 99% 135 990 134 492 1 498 99% GOODS AND SERVICES 70 203 51 579 18 624 73% 83 455 52 548 30 907 63% TRANSFERS AND SUBSIDIES 23 152 23 152 0 100% 1 789 1 782 7 100% PAYMENTS FOR CAPITAL ASSETS 2 113 2 113 0 100% 2 493 2 484 9 100% PAYMENTS FOR FINANCIAL ASSETS 57 57 0 100% 79 79 0 100% TOTAL 193 023 173 053 19 970 90% 223 806 191 385 32 421 86% 2. PROGRAMME 2 ICT SHARED SERVICES Purpose: To roll out a GPG broadband network for the promotion of service delivery efficiencies and connectivity of provincial government offices, facilities and community centres ensuring co-ordination regulation and compliance of all ICT related activity and investment in GCR Strategic objective: To strategically invest in broadband to promote internal efficiencies and improved government and community connectivity To reengineer and transform back office processes to realize efficiencies and improve front line service delivery To create an enabling environment and systems for sound corporate governance of ICT in GCR To promote usage of e-government services Strategic objectives, performance indicators, planned targets, and actual achievement Programme Name: ICT Shared Services Strategic objectives To strategically invest in broadband to promote internal efficiencies and improved government and community connectivity Actual Achievement 2014/2015 6 GBN Core sites were built Connected 137 Access sites Planned Target 2015/2016 Actual Achievement 2015/2016 2 GBN Core sits built 2 GBN Core sites were built 263 access sites connected with high speed connectivity Connected 263 access sites with high speed connectivity Deviation from planned target to Actual Achievement for 2015/2016 Comment on deviations Target Achieved Target Achieved - 24 Thusong Centres connect Connected 22 Thusong Centres 2 Thusong Centres below Target Due to access challenges at the centres the Department reprioritised and connected 22 out of 24 sites. The outstanding sites will be connected in the new financial year. 22

PERFORMANCE REPORT Programme Name: ICT Shared Services Strategic objectives To strategically invest in broadband to promote internal efficiencies and improved government and community connectivity Actual Achievement 2014/2015 Planned Target 2015/2016 Actual Achievement 2015/2016-7 Economic Zones connected Connected 11 Economic Zones connected 7 pilot digital schools to GBN fibre connectivity 100 digital schools connected - Convergence of voice and data onto the GBN network Connected 105 digital schools Converged voice and data onto the GBN network Deviation from planned target to Actual Achievement for 2015/2016 4 Economic Development Zones above target 5 Digital Schools above target Comment on deviations This target is a flagship project and it was overachieved because the Department reprioritised its budget to connect more sites. There were additional requests to include certain schools that were earmarked for the launch of connected classrooms. Target Achieved Migrated 4 GPG departments into GPG cloud Gauteng Department of e-government and Provincial Treasury mobile leave management piloted 5 GPG departments migrated into GPG cloud Functional mobile leave, claims and payslip management for e-government and Provincial Treasury implemented Migrated 5 GPG departments into GPG cloud Implemented functional mobile leave, claims and payslip management for Gauteng Department of e-government and Provincial Treasury none Target Achieved Target Achieved - Common platform concept document adopted - Adopt a business intelligence strategy Adopted Common platform concept document Adopted a business intelligence strategy Target Achieved Target Achieved Adopted ICT policies Adopted Technology Architecture for GPG Departments Adopted Technology Architecture for GPG Departments Target Achieved - Adopted ICT standards for GPG Departments Adopted ICT standards for GPG Departments Target Achieved DAV centre redesigned DAV centre implemented Implemented DAV centre Target Achieved - e-government Change Management Framework adopted Adopted e-government Change Management Framework Target Achieved - e-government incentive programmes adopted Adopted e-government incentive programmes Target Achieved - Public awareness and communication strategy adopted Adopted Public awareness and communication strategy Target Achieved - Omni-channel strategy adopted Adopted Omni-channel strategy Target Achieved - 2 Partnerships established with ICT industry Established 2 Partnerships with ICT industry (SAP and Wits) Target Achieved Reasons for Deviations Due to access challenges the Department reprioritised and connected 22 out of 24 sites. Outstanding sites will be connected in the 2016/17 financial year. The Economic Zones target is a flagship project. It was overachieved because the Department reprioritized its budget to connect more sites. The 105 digital schools connected target was revised due to additional request to include certain schools that were earmarked for the launch of connected classrooms project. 23

Performance indicators Programme Name: ICT Shared Services Performance Indicator Actual Achievement 2014/2015 Planned Target 2015/2016 Actual Achievement 2015/2016 Deviation from planned target to Actual Achievement for 2015/2016 Comment on deviations Number of Core GBN sites built 6 Core sites built 2 GBN Core sites were built 2 GBN Core sites were built Target Achieved Number of Access sites connected with high speed connectivity Number of Thusong Centres connected 137 Access sites connected Connected 263 access sites with high speed connectivity - 24 Thusong Centres connected Connected 263 access sites with high speed connectivity Connected 22 Thusong Centres Target Achieved 2 Thusong Centres below Target Due to access challenges the Department reprioritised and connected 22 out of 24 sites. Outstanding sites will be connected in the 2016/17 financial year. Number of Economic Development Zones connected Number of digital schools connected Convergence of voice and data onto the GBN network Number of GPG departments migrated into GPG cloud Functional mobile leave, claims and payslip management for the Department of e-government and Provincial Treasury implemented Common platform concept document adopted Migrated 7 Pilot Digital schools to GBN fiber connectivity 7 Economic Development zones connected 100 digital schools connected - Convergence of voice and data onto the GBN network Migrated 4 GPG departments into GPG cloud The Department of e-government and Provincial Treasury mobile leave management piloted 5 GPG departments migrated into GPG cloud Functional mobile leave, claims and payslip management for the Department of e-government and Provincial Treasury implemented - Common platform concept document adopted Connected 11 Economic Development zones Connected 105 digital schools Converged voice and data onto the GBN network Migrated 5 GPG departments into GPG cloud Implemented functional mobile leave, claims and payslip management for the Department of e-government and Provincial Treasury Adopted Common platform concept document 4 Economic Development Zones above Target This target is a flagship project. It was overachieved because the Department reprioritised its budget to connect more sites. 5 Digital Schools Above Target There were additional requests to include certain schools that were earmarked for the launch of the connected classrooms project. Target Achieved Target Achieved Target Achieved Target Achieved 24

PERFORMANCE REPORT Performance indicators Programme Name: ICT Shared Services Performance Indicator Adopt a business intelligence strategy Actual Achievement 2014/2015 Planned Target 2015/2016 - Adopt a business intelligence strategy Actual Achievement 2015/2016 Adopted a business intelligence strategy Deviation from planned target to Actual Achievement for 2015/2016 Comment on deviations Target Achieved Adopted technology architecture for GPG departments Adopted ICT policies Adopted technology architecture for GPG departments Adopted Technology Architecture for GPG Departments Target Achieved Adopted ICT standards for GPG departments - Adopted ICT standards for GPG departments DAV centre implemented DAV centre redesigned DAV centre implemented Adopted ICT standards for GPG Departments Target Achieved Implemented DAV centre Target Achieved E-Government change management framework adopted - E-Government change management framework adopted Adopted E-Government change management framework Target Achieved E-Government incentive programs adopted - E-Government incentive programs adopted Adopted E-Government incentive programs Target Achieved Public awareness and communication strategy adopted - Public awareness and communication strategy adopted Adopted Public awareness and communication strategy Target Achieved Omni-channel strategy adopted - Omni-channel strategy adopted Adopted Omni-channel strategy Target Achieved 2 Partnerships established with ICT industry - 2 Partnerships established with ICT industry Established 2 Partnerships with ICT industry (SAP and Wits) Target Achieved Reasons for Deviations Due to access challenges the Department reprioritised and connected 22 out of 24 sites. Outstanding sites will be connected in the 2016/17 financial year. The Economic Zones target is a flagship project. It was overachieved because the Department reprioritized its budget to connect more sites. The 105 digital schools connected target was due to additional request to include certain schools that were earmarked for the launch of connected classrooms project. 25

Changes to planned targets Performance Indicator Annual Target Reason for changes Number of GDE schools migrated onto GBN network Number of Top priority townships connected 150 GDE schools migrated onto GBN network 20 Top priority townships connected This target was reduced from 150 to 100 as the Department reprioritized to connect other sites. The target was revised in the APP. This target was dropped on the basis that the sites that were identified in the top 20 priority townships are in fact access sites which are accounted for under the access sites target. The target was revised in the APP. % established connectivity in the GCR 60% established connectivity in the GCR The Department repriotised and brought in more Economic Development sites, Agencies and Libraries. The target was revised in the APP. Standard Operating procedures approved Number of users using OSS functionality Implemented a change and request manager Number of technologies offered Standard Operating procedures approved 1000 users using OSS functionality Implemented a change and request manager 2 technologies offered This target was replaced with Adopted ICT standards for GPG departments. The target was revised in the APP. An innovation environment is required for quality testing of the OSS functionality before product usage in the live environment. The target was revised in the APP. This is a specialized product which requires expert skills for implementation and support. The target was revised in the APP. This target was replaced by the introduction of the Common Technology Platform for the GCR.The target was revised in the APP. Linking Performance with Budgets PR2: ICT SHARED SERVICES COMPENSATION OF EMPLOYEES Final Actual Expenditure (Over)/Under Expenditure 2015/2016 2014/2015 % Budget Spent Final Actual Expenditure (Over)/Under Expenditure % Budget Spent R 000 R 000 R 000 % R 000 R 000 R 000 % 94 408 94 406 2 100% 93 808 87 601 6 207 93% GOODS AND SERVICES 457 774 455 798 1 976 100% 461 612 461 612 0 100% TRANSFERS AND SUBSIDIES 145 145 0 100% 207 207 0 100% PAYMENTS FOR CAPITAL ASSETS PAYMENTS FOR FINANCIAL ASSETS 350 344 350 344 0 100% 442 755 442 755 0 100% 284 284 0 100% 0 0 0 0% 26

PERFORMANCE REPORT 3. PROGRAMME 3 HUMAN RESOURCES SERVICES Purpose: To improve internal efficiencies in order to realize better front-line service delivery Strategic Objective: To reengineer and transform back office processes to realize efficiencies and improve front line service delivery Strategic objectives, performance indicators, planned targets and actual achievements Sub- Programme Name: Human Resources Services Strategic objective To reengineer and transform back office processes to realize efficiencies and improve front line service delivery Actual Achievement 2014/2015 Rolled out Automated E-PMDS to 3 GPG departments that are SAP ESS enabled Planned Target 2015/2016 Rollout of Automated E-PMDS to 3 GPG departments that are SAP ESS enabled Actual Achievement 2015/2016 Rolled out Automated E-PMDS to 3 GPG departments that are SAP ESS enabled Deviation from planned target to Actual Achievement for 2015/2016 Comment on deviations Target Achieved - Roll out of ATS in 2 departments that are SAP ESS enabled ATS has been rolled out to 2 departments that are SAP ESS enabled Target Achieved Issued 1 Annual Report issued on GPG EHWP trend analysis 1 Annual Report issued on GPG EHWP trend analysis Issued 1 Annual Report on GPG EHWP trend analysis Target Achieved 9554 people accessed the Maponya Mall Thusong service centre 49% reduction of the GPG s recoverable debtors book by 31 March 2016 6 Provincial EHWP interventions conducted 5 GPG EHWP monitoring and evaluation fora convened 9000 People accessing Maponya Mall Thusong Service Centre 20% reduction of the GPG s recoverable debtors book by 31 March 2016 9 Provincial EHWP interventions conducted 5 GPG EHWP monitoring and evaluation fora convened 9220 People Accessed Maponya Mall Thusong Service Centre Achieved 43.99% reduction of the GPG s recoverable debtors book by 31 March 2016 3 Provincial EHWP interventions above target 220 Additional People Accessed Maponya Mall Thusong Service Centre The three additional EHWP interventions was due to an increase in the client departments requests. Target Achieved The 220 additional people accessing the Maponya Mall Thusong Service Centre was due to increased interest in the jobs advertised. 23.99% Above Target The 23.99% reduction in the GPG debtors book was due to an improvement in the debt collection processess. Reasons for deviations The three additional EHWP interventions was due to an increase in the client departments requests. The 220 additional people accessing the Maponya Mall Thusong Service Centre was due to increased interest in the jobs advertised. The 23.99% reduction in the GPG debtors book was due to an improvement in the debt collection processess. 27

Performance Indicators Programme Name: Human Resources Services Performance Indicator Actual Achievement 2014/2015 Planned Target 2015/2016 Actual Achievement 2015/2016 Deviation from planned target to Actual Achievement for 2015/2016 Comment on deviations Rollout of Automated E-PMDS to 3 GPG departments that are SAP ESS enabled Rolled out Automated E-PMDS to 3 GPG departments that are SAP ESS enabled Rollout of Automated E-PMDS to 3 GPG departments that are SAP ESS enabled Rolled out Automated E-PMDS to 3 GPG departments that are SAP ESS enabled Target Achieved Number of GPG departments with SAP ESS to go live on automated termination services (HR21 and HR24) - Roll out of ATS in 2 departments that are SAP ESS enabled ATS has been rolled out to 2 departments that are SAP ESS enabled Target Achieved Number of Annual Report issued on GPG EHWP trend analysis Issued 1 Annual Report issued on GPG EHWP trend analysis 1 Annual Report issued on GPG EHWP trend analysis Issued 1 Annual Report issued on GPG EHWP trend analysis Target Achieved Number of Provincial EHWP interventions conducted - 6 Provincial EHWP interventions conducted Conducted 9 Provincial EHWP interventions 3 Provincial EHWP interventions above target The three additional EHWP interventions was due to an increase in the client departments requests. Number of GPG EHWP monitoring and evaluation fora convened - 5 GPG EHWP monitoring and evaluation fora convened Convened 5 GPG EHWP monitoring and evaluation fora Target Achieved Number of People accessing Maponya Mall Thusong Service Centre 9554 people accessed the Maponya Mall Thusong service centre 9000 People Accessing Maponya Mall Thusong Service Centre 9220 Additional People Accessed Maponya Mall Thusong Service Centre 220 Additional People Accessed Maponya Mall Thusong Service Centre The 220 additional people accessing the Maponya Mall Thusong Service Centre was due to increased interest in the jobs advertised. Number of GPG Mobile recruitment campaigns conducted 14 GPG Mobile recruitment campaigns conducted 12 GPG Mobile recruitment campaigns conducted 12 GPG Mobile recruitment campaigns conducted Target Achieved % reduction of the GPG s recoverable debtors book by 31 March 2016 49% reduction of the GPG s recoverable debtors book by 31 March 2016 20% reduction of the GPG s recoverable debtors book by 31 March 2016 Achieved 43.99% reduction of the GPG s recoverable debtors book by 31 March 2016 23.99% Above Target The 23.99% reduction in the GPG debtors book was due to an improvement in the debt collection processess. Reasons for deviations The three additional EHWP interventions was due to an increase in the client departments requests. The 220 additional people accessing the Maponya Mall Thusong Service Centre was due to increased interest in the jobs advertised. The 23.99% reduction in the GPG debtors book was due to an improvement in the debt collection processess. Strategy to overcome areas of under performance 28

PERFORMANCE REPORT Changes to planned targets Performance Indicator Annual Target Reason for changes Number of GPG of GPG Departments with SAP ESS to go live on automated PMDS Number of GPG EHWP monitoring and evaluation fora convened Rollout of Automated E-PMDS to 6 GPG Departments that are SAP ESS enabled 8 GPG EHWP monitoring and evaluation fora convened Target reduced from 6 to 3 because some departments wanted the system configured in a particular way that addressed their needs. The target has been revised in the APP. Target reduced from 8 to 5 due to the integration of some fora with others. The target has been revised in the APP. Linking Performance with Budgets 2015/2016 2014/2015 PR3: BUSINESS PROCESS SERVICES Final Actual Expenditure (Over)/Under % Budget Expenditure Spent Final Actual Expenditure (Over)/Under Expenditure % Budget Spent R 000 R 000 R 000 % R 000 R 000 R 000 % COMPENSATION OF EMPLOYEES 81 272 81 272 0 100% 155 906 153 910 1 996 99% GOODS AND SERVICES 1 352 550 802 41% 3 020 1 281 1 739 42% TRANSFERS AND SUBSIDIES 201 201 0 100% 57 57 0 100% PAYMENTS FOR CAPITAL ASSETS 0 0 0 0% 87 17 70 20% PAYMENTS FOR FINANCIAL ASSETS 0 0 0 0% 130 130 0 100% 4. OUTLOOK FOR THE COMING FINANCIAL YEAR (2016/17) During the 2016/17 financial year, the Department will connect a further 300 sites across the province, including 13 Government to Citizen sites, 4 Government to Business sites and 283 Government to Government sites. Provincial government is not alone in rolling out broadband access in the city region. The City of Johannesburg has rolled-out 1 150 km of fibre optic network providing connectivity to 10 core sites and is providing commercial broadband connectivity to the private sector and other municipal entities. The Ekurhuleni Metropolitan Municipality has rolled-out 602 km of fibre, connecting 27 core sites, and the city has planned to complete its target of rolling out 1400 km of fibre to connect 670 municipal buildings by June 2017. The City of Tshwane has rolled out 500 km of fibre connecting over 350 municipal buildings, over 400 electricity substations and 250 CCTV Cameras. To ensure that ordinary citizens, who cannot afford private connectivity, have access to the internet, the three metropolitan councils have collectively connected 2100 public WiFi connectivity hotspots. This significant work by municipalities offers new opportunities for ICT co-operation in the City Region to facilitate faster coverage, avoid duplication and use provincial resources to support the West Rand and Sedibeng districts; where municipal resource constraints prevent significant connectivity programmes. In the Gauteng City Region (GCR), we are maintaining a collaborative approach with the Metros and the districts. Our primary focus will be on districts and especially areas that are not currently covered by Metros. To save citizens costs and time we aim to create an enabling platform that would support GCR entities to more effectively deliver e-services. To achieve this, we aim to: Implement a Common Platform technology that can be used by citizens to access government e-services. To improve spatial planning in the province we, together with the Gauteng Planning Division, by implementing the GCR wide GIS solution that will be used by all entities in the region. 29

PERFORMANCE REPORT Establish a baseline of common e-government services that will be accessed on the regional GCR Common Platform. This will be done in conjunction with SITA and municipalities. Establish a virtual e-government Centre of Excellence to provide support to GCR entities in the implementation of e-government initiatives, including support and maintenance of the Common Platform. This will involve the collaboration on ICT expertise within the GCR entities. To sponsor and drive the implementation of the GCR e-government programme, we aim to implement a governance model including polices, regulations, standards and guidelines. This will be achieved through defining the key performance indicators to monitor and evaluate the success of the e-government programme as well as ensuring that the GCR entities comply with the policies, regulations, standards and guidelines for e-government. The key initiatives to establish the e-governance frameworks in the GCR are: To research and develop new and existing regulations to remediate the regulatory framework to enable the GCR e-government vision. To develop the GCR e-government architecture, standards, processes and security frameworks. To develop and rollout e-government Performance Monitoring and Evaluation strategy. In order to reach the next level of maturity (Connected Presence), we need to promote the usage of e-government services amongst citizens, businesses and government entities through the implementation of the following initiatives: Implement a multi-channel CRM strategy to appropriately engage all stakeholders that will be involved in the e-government programme. Implement a change management programme including a skills upliftment capability to drive buy-in and adoption of e-government services amongst GCR entities. Create public awareness and develop a Communication Strategy to address the uptake of e-government services by citizens and business. Develop incentives for citizens, businesses and government entities to participate in the e-government programme. The Department further aims to stimulate the ICT economy by encouraging public private partnerships for the development and roll-out of e-government services. The Department has plans to deliver the following: Conclude strategic private sector partnerships. Implement the e-government Township Economy Framework, and Implement the GCR e-government Entrepreneurship Framework. These ICT governance frameworks will be implemented during the 2016/17 financial year. 30

PART C - GOVERNANCE 1. Introduction 32 2. The Governance of Risk 32 3. Embedding Risk Management 32 4. Fraud and Corruption 32 5. Portfolio Committees 33-35 6. Audit Committee Report 36-37

1. INTRODUCTION The Department views Enterprise Risk Management (ERM) as an imperative for the successful delivery on its mandate. The Department believes that identifying, understanding and managing risks in an enterprise-wide context will ensure accountability and sustainability, and that ERM will compel the Department to address negative events in a proactive and timely manner, whilst exploiting the possible opportunities posed by certain future uncertainties. 2. THE GOVERNANCE OF RISK The Accounting Officer of the Department is accountable for the process of risk management within the Department while the Senior Management is responsible for the management of significant risks facing the Department in the delivery of its mandate. The Audit Committee of the Department has the overall oversight for risk management. The Department has a Risk Management Committee (RMC) comprising of an external member serving as the independent chairperson, with all Deputy Director-Generals and Chief Directors of the Department as members. The Gauteng Audit Services and the Audit Committee provide independent assurance of the Department s ERM processes, and advice on risk management controls and risk mitigation effectiveness. The Department has appointed a Chief Risk Officer and has in place effective management systems (framework, policy, strategy and annual implementation plan) for ERM. 3. EMBEDDING RISK MANAGEMENT Top departmental and operational risk profiles per programme were finalised for the period under review and risk mitigation was monitored quarterly by the RMC. There are various processes to ensure the commitment of the entire Department (e.g. awareness sessions and regular risk assessments and subsequent follow-up), as well as the definition of clear risk management roles and responsibilities. To ensure the quality, integrity and reliability of the Department s ERM processes and responses, the RMC has played an integral part in ensuring that the Department maintains and enhances the maturity level of risk management. The Department has noted that the improvement in the management of risks has translated into improvement in performance. 4. FRAUD AND CORRUPTION The Department has put in place a fraud prevention plan which includes a whistle-blowing policy. In the period under review, the fraud risk profile was finalised. This formed the basis for the formulation of the annual fraud prevention plan. Implementation was monitored quarterly and reports thereto submitted to the Audit Committee by the Forensics unit of the Gauteng Provincial Government. The Department promotes awareness of fraud and corruption on an ongoing basis, in order to heighten staff awareness on matters relating to fraud, corruption and ethical conduct. 32

GOVERNANCE 5. PORTFOLIO COMMITTEES Matters Raised by Portfolio Committee No. Questions Responses Resolved(Yes/No) 1. Second quarter report for 2015 / 16 financial year. The Department of e-government should revise the target to connect economic zones as it impacts negatively on performance. A report on the impact of not attaining the target should be submitted The Department acknowledges difficulties in providing broadband connectivity to economic zones. This is primarily due to issues of ownership and accountability within these economic zones. The Department is in the process of amending the annual performance plan to ensure that resources are effectively redistributed to other areas that have a similar mandate of enabling economic development. The resources have been redirected to areas that the province has direct control over. These include schools, health facilities and other government entities. The department in partnership with the Gauteng Innovation Hub has identified ekasie labs to be connected instead. The mandate of the ekasie labs is similar to that of the economic zones, therefore reducing the impact. Yes 2. Third quarter report for 2015 / 16 financial year. Resolution: The Department should strive to finalise engagement with Municipalities on gaining access to identified Thusong Sites. A progress report on the engagements should be submitted. The Department, through its engagement with municipalities is progressing well with connecting Thusong Centres. Yes 3. All targets under sub-programme 1, 3, and 5 have all been achieved without expending 100% of allocated funds. How did the Department manage to reach all its targets without utilising its total allocation? Achievements of targets for this sub programme are attributable to the following: o Streamlined processes within the department; o Improved co-operation from the clients in the achievement of objectives Yes 4. Under sub programme 1 (Office of the HoD) one of the deliverables is the submission of GEYODI reports to the Office of the Premier. It is commendable that this target was achieved, however, what impact does the generating and submission of these reports have within GPG departments? Are there any major issues that emanate from these reports? Furthermore, how does this report impact on the groups considered i.e. Youth, People with Disabilities? The GEYODI Reports have yielded the desired impact for the department, namely: a. The report has raised the level of consciousness within the department on the desired preferential targets and has accordingly influenced the department s recruitment plans and supply chain processes; b. One of the issues encountered by the department was its inability to achieve its targets in relation to People with Disabilities for procurement and recruitment. The department has since put in place an accelerated plan to ensure that the set targets for recruiting employees with disabilities and procurement from businesses inclusive of disabilities are achieved. Yes 5. Under sub programme 5, the Department indicated that the Evaluation study which was to be approved and published by 30 October 2014 was not aligned to the new Strategic Plan for the department. Further clarity is sought in this regard. It would appear that this study would have been instrumental in assisting the Department with ensuring that funds are channelled to relevant programmes and projects as well as ensuring optimal performance and efficient use of resources. The new department of e-government was gazetted effective 01 October 2015 and a new HOD appointed on 01 October 2015. The newly formed department will formerly operate a new budget with effect from 01 April 2016. The newly formed department of e-government has identified the evaluation of the e-recruitment model in the current financial year. Yes 6. It is commendable that all targets were achieved and the Department is further applauded for the reported overachievements. However, this gives rise to the following question: What are the outcomes in relation to the following: Considering that the targets for sub programme 1 and 2 were achieved, what impact did this have on the status of compliance, efficiency and effectiveness across GPG departments? Are there areas where the need arose to make recommendations for the improvement of processes within GPG departments? Sub-programme 1 The department submitted the required reports within the agreed prescribed time-frames in relation to the Management Performance Assessment Tool (MPAT) on compliance. The department achieved an overall performance compliance rating of 72% which placed the department in second position in the Province. Yes 33

Matters Raised by Portfolio Committee No. Questions Responses Resolved(Yes/No) 7. It is commendable that all targets were achieved and the Department is further applauded for the reported overachievements. However, this gives rise to the following question: What are the outcomes in relation to the following: Has the Department identified any IT risks within GPG departments? If so, what remedial actions were taken and what was the impact thereof? Based on the identified IT risks, the following remedial actions were put in place: As part of the risk identification exercise, for each risk identified, relevant mitigating controls were identified by management and responsibility allocated to senior officials for corrective action within specific timelines. The Computer Audit unit then scheduled various computer audits to be done during 2015/16 which will focus on the identified high risk areas to check whether the mitigating controls put in place are operating in an efficient and effective manner. In addition, the Internal Risk Management unit monitors implementation of the mitigating factors in every quarter and reports progress to the Risk Management Committee and Audit Committee. Yes The impact thereof has been the significant improvement in IT controls specifically around IT Governance and general IT controls. 8. It is commendable that all targets were achieved and the Department is further applauded for the reported overachievements. However, this gives rise to the following question: What are the outcomes in relation to the following: Considering that the targets for sub programme 1 and 2 were achieved, what impact did this have on the status of compliance, efficiency and effectiveness across GPG departments? Are there areas where the need arose to make recommendations for the improvement of processes within GPG departments? Sub-programme 1 The department submitted the required reports within the agreed prescribed time-frames in relation to the Management Performance Assessment Tool (MPAT) on compliance. The department achieved an overall performance compliance rating of 72% which placed the department in second position in the Province. Yes 9. It is commendable that all targets were achieved and the Department is further applauded for the reported overachievements. However, this gives rise to the following question: What are the outcomes in relation to the following: Has the Department identified any IT risks within GPG departments? If so, what remedial actions were taken and what was the impact thereof? Based on the identified IT risks, the following remedial actions were put in place: As part of the risk identification exercise, for each risk identified, relevant mitigating controls were identified by management and responsibility allocated to senior officials for corrective action within specific timelines. The Computer Audit unit then scheduled various computer audits to be done during 2015/16 which will focus on the identified high risk areas to check whether the mitigating controls put in place are operating in an efficient and effective manner. In addition, the Internal Risk Management unit monitors implementation of the mitigating factors in every quarter and reports progress to the Risk Management Committee and Audit Committee. Yes The impact thereof has been the significant improvement in IT controls specifically around IT Governance and general IT controls. 10. The Department reported in quarter two that the target on providing 1 Economic zone with high speed broadband connectivity will be revised in quarter 3 in the revised APP for 2014/15. However, in the third and fourth quarter, this target was not reported on. The target was also not reported on in the Annual Report. What is the status on this target and why has it not been reported on? The department s APP was revised in line with the revised strategy of the department and the establishment of the new department of e-government. As a result the economic zones are planned to be implemented in 2015/16. The department has connected the following areas: City Deep, Gauteng Growth and Development Agency, Gauteng Tourism Authority, and Gauteng Enterprise Propeller. Yes 34

GOVERNANCE Matters Raised by Portfolio Committee No. Questions Responses Resolved(Yes/No) 11. Under its achievements for the 2014/15 financial year, the Department states that it capacitated and developed middle managers and junior managers. To what extent does this address issues of gender, youth and people with disabilities? Furthermore, does this reflect the demographics of the Province? The training provided for the period 1 April 2014 31 March 2015 achieved: 50% of women in middle and junior management were trained; 95% of youth in middle and junior management were trained. 0.32% of People with Disabilities in middle and junior management have been trained Yes 12. According to the Department during the functional upgrade of SAP it transpired that the vendor rotation would be a component of the upgrade, which resulted in the budget allocated for the VRS not being used. Has the budget been expended and what impact did this have on the level of expenditure under programme 4 at the end of the financial year? Business Process Services (programme 4) utilised 97 percent of its final appropriation as at 31 st March 2015. The unspent budget, amounting to a total of R3.8 million, formed part of the unspent funds that were surrendered to the Provincial Revenue Fund, as required by law. Yes 35

6. AUDIT COMMITTEE REPORT We are pleased to present our report for the financial year ended 31 March 2016. Audit Committee and attendance The Audit Committee consists of the external Members listed hereunder and is required to meet a minimum of at least two times per annum as per the provisions of the Public Finance Management Act, 1999 (Act Number 1 of 1999) (PFMA). In terms of the approved Terms of Reference (GPG Audit Committee Charter), five meetings were held during the current year, i.e. three meetings to consider the Quarterly Performance Reporting (financial and non-financial) and two meetings to review and discuss the Annual Financial Statements and the Auditor-General of South Africa s (AGSA) Audit and Management Reports. Non-Executive members Name of member Number of meetings attended Mr. Japie du Plessis (Chairperson) 05 Ms. Tshidi Molala 04 Ms. Janice Meissner 04 Mr. Siphile Buthelezi 01 (Resigned 27 October 2015) Executive members In terms of the GPG Audit Committee Charter, officials listed hereunder are obliged to attend meetings of the Audit Committee: Compulsory attendees Number of meetings attended Mr. Oupa Seabi (Acting 01 Accounting Officer) Mr. Boy Ngobeni (Accounting 04 Officer) Mr. Ntlhane Bopape (Chief 05 Financial Officer) Therefore, the Audit Committee is satisfied that the Department adhered to the provisions of the GPG Audit Committee Charter. The Members of the Audit Committee met with the Senior Management of the Department, Internal Audit and the AGSA, individually and collectively to address risks and challenges facing the Department. A number of in-committee meetings were held to address control weaknesses and deviations within the Department. Audit Committee responsibility The Audit Committee reports that it has complied with its responsibilities arising from section 38(1)(a) of the PFMA and Treasury Regulation 3.1.13. 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. The effectiveness of internal control and Information and Communication Technology (ICT) Governance The Audit Committee has observed that the overall control environment of the Department has continued to improve during the year under review. Some deficiencies in the system of internal control and deviations were reported in the Internal and AGSA Reports. The overall opinion of Internal Audit on the internal control design at the Department is partially adequate and effective. The Audit Committee also reviewed the progress with respect to the ICT Governance in line with the ICT Framework issued by the Department of Public Services and Administration. Although there was some progress on the ICT internal control, the Audit Committee report its dissatisfaction with the progress made on the formal control over the IT systems as mentioned in the Management Report of the AGSA. This continued to be a high risk for the Department. The Department did implement the recommendations made by the Audit Committee. Ms. Sempotseng Mmope (Chief Risk Officer) 05 The Audit Committee noted that the Accounting Officer attended all five scheduled Audit Committee meetings. 36

GOVERNANCE Internal Audit Internal Audit was effective during the financial year. The Audit Committee is satisfied that the Internal Audit Plan represents a clear alignment with the key risks, has adequate information systems coverage, and a good balance across the different categories of audits, i.e. risk-based, mandatory, performance, computer and follow-up audits. The Audit Committee has noted considerable improvement in the communication between the Executive Management, the AGSA and the Internal Audit Function, which has strengthened the Corporate Governance initiatives within the Department. Risk Management Progress on the departmental risk management was reported to the Audit Committee on a quarterly basis. The Audit Committee is satisfied that the actual management of risk is receiving attention, and that its implementation can only improve with continued support from Senior Management. Management should take full responsibility for the entire Enterprise Risk Management process and continue to support the Chief Risk Officer to even further enhance the performance of the Department. Forensic Investigations Reviewed the Department s compliance with legal and regulatory provisions; and Reviewed significant adjustments resulting from the audit. The Audit Committee concurs with and accepts the AGSA s conclusions on the Annual Financial Statements and is of the opinion that the audited Annual Financial Statements be accepted and read together with the report of the AGSA. One-on-One meetings with the Accounting Officer The Audit Committee has met with the Accounting Officer for the Department to address unresolved issues. One-on-One meetings with the Executive Authority The Audit Committee has met with the Executive Authority for the Department to appraised the MEC on the performance of the Department. Auditor-General of South Africa The Audit Committee has met with the AGSA to ensure that there are no unresolved issues. No forensic investigations were requested for the Department during the financial year under review.the quality of quarterly reports submitted in terms of the PFMA and the Division of Revenue Act The Audit Committee is satisfied with the content and quality of financial and non-financial quarterly reports prepared and submitted by the Accounting Officer of the Department during the year under review and confirms that the reports were in compliance with the statutory reporting framework. Mr. Japie du Plessis Chairperson of the Audit Committee Date: 31 July 2016 Evaluation of the Annual Financial Statements The Audit Committee has: Reviewed and discussed the audited Annual Financial Statements to be included in the Annual Report with the AGSA and the Accounting Officer; Reviewed the Audit Report of the AGSA; Reviewed the AGSA s Management Report and Management s response thereto; 37

PART D - HUMAN RESOURCES REPORT 1. Introduction 39 2. Overview of Human Resources 39 3. Human Resources Oversight Statistics 40-58

HUMAN RESOURCES REPORT 1.INTRODUCTION The purpose of Human Resource Management is to render human resource management services within the Department. The Human Resource Management directorate comprises of four key capabilities: Human resource planning and organizational development Human resource administration Performance management and development Employee relations and wellness The directorate is entrusted with the responsibility of fulfilling the following functions: Manage and facilitate human resource planning and organizational development. Manage coordination and facilitation performance management and development programmes. Provide human resource administration to the Department. Provide recruitment services to the Department Provide employee health, wellness and relations programmes within the Department. 2.OVERVIEW OF HUMAN RESOURCES The functions of human resources are in line with the outputs of Outcome 8A An efficient, effective and development oriented public service. During the year under review and post migration of functions to Gauteng Provincial Treasury and Office of the Premier, the Department embarked on the restructuring process to align to its new mandate. The proposed organisational structure will be phased in over the Medium Term Expenditure Framework (MTEF) upon consultation with and approval by the Minister of Public Service and Administration (MPSA). The job evaluation process for newly created posts was being finalised. On approval of the structure the process of matching and placing of staff and identification of critical constrained areas will also be concluded. The focus for the 2015/16 financial year was to improve service delivery to our clients as well as the management and staff of the Department. The Department also focused on the modernisation of the public service using ICT tools to raise standards of living and enlarge opportunities for the people of Gauteng by training its staff members. There have been marked increases in the participation of staff in various Internal HR committees i.e. the Occupational Health and Safety Representatives Committee; the Skills Development Committee; as well as the Wellness Days for health screening, including testing for HIV and donating blood. The efforts to improve service delivery will continue in the new financial year and beyond. The following notable successes were also realized in the year under review: Positions vacant for longer than six months were abolished on PERSAL. Vacancy rate was reduced from 26% to 8%. Key positions were identified and recruitment processes were implemented which resulted in the successful filling of 68 positions. The Identity Verification Solution was conducted and completed for all the employees within the Department Capacitating and developing middle managers and junior managers. Improve compliance with the Code of Conduct of the Public Service. Strengthening the use of e-pmds in the Department. 39

3. HUMAN RESOURCES OVERSIGHT STATISTICS 3.1 Personnel Related Expenditure The following tables summarise the final audited personnel related expenditure by programme and by salary bands. In particular, it provides an indication of the amount spent on personnel costs in terms of each of the programmes or salary bands within the Department. Table 3.1.1 Personnel expenditure by programme for the period 1 April 2015 and 31 March 2016 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 173 052 96 153 2 671 2 606 56 135 Business process services 82 023 81 272 0 0 99 114 ICT shared services 900 976 94 405 21 6 327 10 133 Total 1 156 052 271 830 2 692 8 933 24 383 Table 3.1.2 Personnel costs by salary band for the period 1 April 2015 and 31 March 2016 Salary band Personnel expenditure (R 000) % of total personnel cost No. of employees Average personnel cost per employee (R 000) Skilled (Levels 3-5) 13 813 5 81 170 531 Highly skilled production (Levels 6-8) 101 382 36.8 345 292 167 Highly skilled supervision (Levels 9-12) 105 609 38.4 182 580 269 Senior management (Levels 13-16) 10 794 3.9 11 981 273 Contract (Levels 1-2) 351 0.1 20 9 486 Contract (Levels 6-8) 193 0.1 1 193 000 Contract (Levels 9-12) 3 915 1.4 5 783 000 Contract (Levels 13-16) 25 190 9.2 24 1 049 583 Periodical Remuneration 9 533 3.5 4 1 906 600 Abnormal Appointment 1 050 0.4 37 27 632 Total 271 830 98.7 710 371 860 40

HUMAN RESOURCES REPORT Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the period 1 April 2015 and 31 March 2016 Programme Amount (R 000) Salaries Salaries as a % of personnel costs Amount (R 000) Overtime Overtime as a % of personnel costs Home Owners Allowance Amount (R 000) HOA as a % of personnel costs Amount (R 000) Medical Aid Medical aid as a % of personnel costs Administration 82 803 90.8 717 0.8 2 708 3 4 995 5.5 Business process services 69 084 92.4 825 1 2 733 3.7 2 118 2.8 ICT shared services 84 495 95.3 52 0.1 1 380 1.6 2 693 3 Total 236 382 92.8 1 594 0.6 6 821 2.7 9 806 3.7 Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the period 1 April 2015 and 31 March 2016 Salary band Amount (R 000 Salaries Salaries as a % of personnel costs Amount (R 000) Overtime Overtime as a % of personnel costs Amount (R 000) Home Owners Allowance HOA as a % of personnel costs Amount (R 000) Medical Aid Medical aid as a % of personnel costs Skilled (Levels 3-5) 13 813 86 106 0.7 923 5.7 1 218 7.6 Highly skilled production 82 227 88.6 1 131 1.2 4 038 4.4 5 374 5.8 (Levels 6-8) Highly skilled supervision (Levels 9-12) 89 316 95 357 0.4 1 490 1.6 2 830 3 Senior management (Levels 13-16) 10 794 97.8 0 0 69 0.6 169 1.5 Contract (Levels 1-2) 351 100 0 0 0 0 0 0 Contract (Levels 6-8) 193 100 0 0 0 0 0 0 Contract (Levels 9-12) 3 915 95 0 0 200 4.9 6 0.1 Contract (Levels 13-16) 25 190 98.8 0 0 101 0.4 209 0.8 Periodical Remuneration 9 533 100 0 0 0 0 0 0 Abnormal Appointment 1 050 100 0 0 0 0 0 0 Total 236 382 92.8 1 594 0.6 6 821 2.7 9 806 3.7 3.2 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. Table 3.2.1 Employment and vacancies by programme as on 31 March 2016 Number of posts on approved Number of employees additional to the Programme Number of posts filled Vacancy Rate establishment establishment Administration 330 297 10% 37 252 237 6% 0 Business Process Services ICT Shared Services 171 154 10% 0 Total 753* 688 8.6 37 *Amount includes positions additional to staff establishment 41

Table 3.2.2 Employment and vacancies by salary band as on 31 March 2016 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 5 0 100 0 Skilled (Levels 3-5), Permanent 91 81 11 0 Highly skilled production (Levels 6-8), Permanent 360 350 2.8 0 Highly skilled supervision (Levels 9-12), Permanent 209 184 12 0 Senior management (Levels 13-16), Permanent/Contract 45 30 33.3 0 Contract (Levels 1-2), Permanent 37 37 0 37 Contract (Levels 6-8), Permanent 1 1 0 0 Contract (Levels 9-12), Permanent 5 5 0 0 Total 753 688 8.6 37 Table 3.2.3 Employment and vacancies by critical occupations as on 31 March 2016 Critical occupation Number of posts on approved establishment Number of posts filled Vacancy Rate Number of employees additional to the establishment Administrative related, Permanent 34 30 11.8 0 All artisans in the building metal machinery etc., Permanent 5 4 20 0 Cashiers tellers and related clerks, Permanent 2 1 50 0 Client inform clerks(switchboard reception inform clerks), Permanent 10 10 0 0 Communication and information related, Permanent 1 1 0 0 Computer programmers, Permanent 10 10 0 0 Computer system designers and analysts, Permanent Finance and economics related, Permanent Financial and related professionals, Permanent Financial clerks and credit controllers, Permanent Food services aids and waiters, Permanent Head of department/chief executive officer, Permanent Human resources & organisational development & related professionals, Permanent Human resources clerks, Permanent Human resources related, Permanent Information technology related, Permanent Language practitioners interpreters & other communication, Permanent Legal related, Permanent Library mail and related clerks, Permanent Logistical support personnel, Permanent Material-recording and transport clerks, Permanent Messengers porters and deliverers, Permanent Other administration & related clerks and organisers, Permanent Other information technology personnel. Permanent Other occupations, Permanent Risk management and security services, Permanent Secretaries & other keyboard operating clerks, Permanent Security officers, Permanent Senior managers, Permanent Total 60 56 6.7 0 42 37 11.9 0 10 9 10 0 99 95 4 0 3 3 0 0 1 1 0 0 81 78 3.7 0 107 97 9.3 37 31 29 3.7 0 15 14 6.7 0 7 7 0 0 3 1 66.7 0 42 39 7.1 0 15 15 0 0 6 6 0 0 4 4 0 0 2 2 0 0 43 41 4.7 0 2 2 0 0 4 3 25 0 16 16 0 0 54 48 11.1 0 44 29 34.1 0 753 688 8.6 37 42

HUMAN RESOURCES REPORT 3.3 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 the filling of SMS posts, reasons for not complying with prescribed timeframes and disciplinary steps taken. Table 3.3.1 SMS post information as on 31 March 2016 SMS Level Total number of funded SMS posts Total number of SMS posts filled % of SMS posts filled Total number of SMS posts vacant % of SMS posts vacant Director-General 0 0 0% 0 0% Salary Level 16 /Head of Department 1 1 100% 0 0% Salary Level 15 2 1 50% 1 50% Salary Level 14 7 5 71% 2 29% Salary Level 13 35 23 66% 12 34% Total 45 30 67% 15 33% Table 3.3.2 SMS post information as on 30 September 2015 SMS Level Total number of funded SMS posts Total number of SMS posts filled % of SMS posts filled Total number of SMS posts vacant % of SMS posts vacant Director-General 0 0 0% 0 0% Salary Level 16 /Head of Department 1 0 0% 1 100% Salary Level 15 2 2 100% 0 0% Salary Level 14 7 5 71% 2 29% Salary Level 13 35 20 57% 15 43% Total 45 27 60% 18 40% Table 3.3.3 Advertising and filling of SMS posts for the period 1 April 2015 and 31 March 2016 SMS Level Advertising Number of vacancies per level advertised in 6 months of becoming vacant Number of vacancies per level filled in 6 months of becoming vacant Filling of Posts Number of vacancies per level not filled in 6 months but filled in 12 months Director-General 0 0 0 Salary Level 16 /Head of Department 1 1 0 Salary Level 15 0 0 0 Salary Level 14 0 0 4 Salary Level 13 0 0 5 Total 1 1 9 Table 3.3.4 Reasons for not having complied with the filling of funded vacant SMS - Advertised within 6 months and filled within 12 months after becoming vacant for the period 1 April 2015 and 31 March 2016 Reasons for vacancies not advertised within six months Review of the organisational structure Reasons for vacancies not filled within six months Review of the organisational structure Table 3.3.5 Disciplinary steps taken for not complying with the prescribed timeframes for filling SMS posts within 12 months for the period 1 April 2015 and 31 March 2016 Reasons for vacancies not advertised within six months Review of the organisational structure Reasons for vacancies not filled within six months Review of the organisational structure 43

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 3.4.1 Job Evaluation by Salary band for the period 1 April 2015 and 31 March 2016 Salary band % of posts evaluated by salary Posts Upgraded Posts downgraded Number of posts on Number of Jobs approved establishment Evaluated % of posts bands Number evaluated Number % of posts evaluated Lower Skilled (Levels1-2) 5 0 0% 0 0% 0 0% Skilled (Levels 3-5) 91 1 1% 0 0% 0 0% Contract (level 1-2) 37 0 0% 0 0% 0 0% Highly skilled production (Levels 6-8) 363 0 0% 0 0% 0 0% Highly skilled supervision (Levels 9-12) 212 15 7% 0 0% 0 0% Senior Management Service Band A 35 0 0% 0 0% 0 0% Senior Management Service Band B 7 0 0% 0 0% 0 0% Senior Management Service Band C 2 0 0% 0 0% 0 0% Senior Management Service Band D 1 0 0% 0 0% 0 0% Total* 753 16 2% 0 0% 0 0% *The bulk of the positions evaluated by the department during 2015/16 financial year are on the proposed structure. Table 3.4.2 Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2015 and 31 March 2016 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. Gender African Asian Coloured White Total Female 52 1 8 4 65 Male 51 1 3 1 56 Total 103 2 11 5 121 Employees with a disability 6 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 3.4.3 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2015 and 31 March 2016 Occupation Number of employees Job evaluation level Remuneration level Reason for deviation Security Officers/Receptionists 46 3 4 Shift Leaders 1 4 5 Practitioner: Debt Management 36 6 7 *PSR,2001 V.C.5 to C.7 Practitioner : Payroll 38 6 7 Total number of employees whose salaries exceeded the level determined by job evaluation 121 Percentage of total employed 16% *Apply the principles of equal pay for work of equal value and other labour standards 44

HUMAN RESOURCES REPORT The following table summarises the beneficiaries of the above in terms of race, gender, and disability. Table 3.4.4 Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2015 and 31 March 2016 Gender African Asian Coloured White Total Female 52 1 8 4 65 Male 51 1 3 1 56 Total 103 2 11 5 121 Employees with a disability 4 1 0 1 6 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. Table 3.5.1 Annual turnover rates by salary band for the period 1 April 2015 and 31 March 2016 Salary band Number of employees at beginning of period (1 April 2015) Appointments and transfers into the department Terminations and transfers out of the department Turnover rate Skilled (Levels 3-5), Permanent 71 12 1 1.4 Highly skilled production (Levels 6-8), Permanent 341 12 7 2.1 Highly skilled supervision (Levels 9-12), Permanent 188 2 6 3.2 Senior Management Service Band A, Permanent 9 0 1 11.1 Senior Management Service Band B, Permanent 1 0 0 0 Contract (Levels 1-2), Permanent 0 37 0 0 Contract (Levels 6-8), Permanent 1 1 0 0 Contract (Levels 9-12), Permanent 8 0 1 12.5 Contract (Band A), Permanent 21 1 8 38.1 Contract (Band B), Permanent 6 2 4 66.7 Contract (Band C), Permanent 5 0 3 60 Contract (Band D), Permanent 1 1 1 100 Total 652 68 32 4.9 Table 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2015 and 31 March 2016 Critical occupation Number of employees at beginning of period-april 2015 Appointments and transfers into the department Terminations and transfers out of the department Turnover rate Administrative related, Permanent 31 0 1 3.2 Advocates, Permanent 1 0 0 0 All artisans in the building metal machinery etc., Permanent 5 0 1 20 Cashiers tellers and related clerks, Permanent 1 0 0 0 Client inform clerks(switchboard reception inform clerks), Permanent 10 1 0 0 Communication and information related, Permanent 1 0 0 0 Computer programmers., Permanent 10 0 0 0 Computer system designers and analysts., Permanent 57 0 1 1.8 Finance and economics related, Permanent 37 0 1 2.7 Financial and related professionals, Permanent 9 0 0 0 Financial clerks and credit controllers, Permanent 95 1 2 2.1 45

Critical occupation Number of employees at beginning of period-april 2015 Appointments and transfers into the department Terminations and transfers out of the department Turnover rate Food services aids and waiters, Permanent 2 0 0 0 Head of department/chief executive officer, Permanent 1 1 1 100 Human resources & organisational development & relate prof, Permanent 79 3 3 3.8 Human resources clerks, Permanent 58 39 1 1.7 Human resources related, Permanent 34 0 1 2.9 Information technology related, Permanent 15 0 1 6.7 Language practitioners interpreters & other communication, Permanent 6 0 0 0 Legal related, Permanent 0 1 0 0 Library mail and related clerks, Permanent 42 0 2 4.8 Logistical support personnel, Permanent 14 1 0 0 Material-recording and transport clerks, Permanent 6 0 0 0 Messengers porters and deliverers, Permanent 4 0 0 0 Other administrative policy and related officers, Permanent 1 0 0 0 Other information technology personnel., Permanent 38 6 1 2.6 Other occupations, Permanent 2 0 0 0 Risk management and security services, Permanent 4 0 0 0 Secretaries & other keyboard operating clerks, Permanent 17 1 0 0 Security officers, Permanent 40 11 1 2.5 Senior managers, Permanent 32 3 15 46.9 TOTAL 652 68 32 4.9 The table below identifies the major reasons why staff left the department. Table 3.5.3 Reasons why staff left the department for the period 1 April 2015 and 31 March 2016 Termination Type Number % of Total Resignations Death 2 6.3 Resignation 10 31.3 Expiry of contract 2 6.3 Dismissal operational changes 0 0 Dismissal misconduct 1 3.1 Dismissal inefficiency 0 0 Discharged due to ill-health 1 3.1 Retirement 2 6.3 Transfer to other Public Service Departments 14 43.8 Other 0 0 Total 32 100 Total number of employees who left as a % of total employment 4.9% 46

HUMAN RESOURCES REPORT Table 3.5.4 Promotions by critical occupation for the period 1 April 2015 and 31 March 2016 Occupation Employees (1 April 2015) 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 31 1 3.2 25 80.6 Advocates 1 1 100 1 100 All artisans in the building metal machinery etc. 5 0 0 4 80 Cashiers tellers and related clerks 1 0 0 2 200 Client inform clerks(switchboard reception inform clerks) 10 0 0 12 120 Communication and information related 1 0 0 1 100 Computer programmers. 10 0 0 6 60 Computer system designers and analysts. 57 2 3.5 45 78.9 Finance and economics related 37 0 0 30 81.1 Financial and related professionals 9 0 0 9 100 Financial clerks and credit controllers 95 4 4.2 96 101.1 Food services aids and waiters 2 0 0 2 100 Head of department/chief executive officer 1 0 0 0 0 Human resources & organisational development & relate professionals 79 6 7.6 67 84.8 Human resources clerks 58 4 6.9 50 86.2 Human resources related 34 0 0 33 97.1 Information technology related 15 0 0 13 86.7 Language practitioners interpreters & other communication 6 0 0 6 100 Legal related 0 1 0 0 0 Library mail and related clerks 42 2 4.8 40 95.2 Logistical support personnel 14 0 0 17 121.4 Material-recording and transport clerks 6 0 0 10 166.7 Messengers porters and deliverers 4 0 0 8 200 Other administration & related clerks and organisers 0 1 0 0 0 Other administrative policy and related officers 1 0 0 0 0 Other information technology personnel. 38 0 0 33 86.8 Other occupations 2 0 0 1 50 Risk management and security services 4 0 0 4 100 Secretaries & other keyboard operating clerks 17 0 0 14 82.4 Security officers 40 0 0 73 182.5 Senior managers 32 3 9.4 21 65.6 TOTAL 652 25 3.8 623 95.6 Table 3.5.5 Promotions by salary band for the period 1 April 2015 and 31 March 2016 Salary Band Employees 1 April 2015 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 Skilled (Levels 3-5), Permanent 71 0 0 129 181.7 Highly skilled production (Levels 6-8), Permanent 341 13 3.8 308 90.3 Highly skilled supervision (Levels 9-12), Permanent 188 7 3.7 156 83 Senior management (Levels 13-16), Permanent 10 3 30 7 70 Contract (Levels 6-8), Permanent 1 0 0 0 0 Contract (Levels 9-12), Permanent 8 0 0 3 37.5 Contract (Levels 13-16), Permanent 33 2 6.1 20 60.6 Total 652 25 3.8 623 95.6 47

3.6 Employment Equity The tables in this section are based on the formats prescribed by the Employment Equity Act, 55 of 1998 Table 3.6.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March 2016 Occupational category Male Female Total African Coloured Indian White African Coloured Indian White Legislators, senior officials and managers 9 0 4 3 8 1 1 1 27 Professionals 91 11 8 13 139 7 5 12 286 Technicians and associate professionals 16 1 1 1 20 1 2 3 45 Clerks 82 8 1 2 141 22 3 7 266 Service and sales workers 34 0 1 0 16 0 0 0 51 Craft and related trades workers 4 0 0 0 0 0 0 0 4 Elementary occupations 4 0 0 0 4 0 0 1 9 Total 240 20 15 19 328 31 11 24 688 Employees with disabilities 9 0 1 0 16 0 0 2 28 Table 3.6.2 Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2016 Occupational band Male Female Total African Coloured Indian White African Coloured Indian White Senior Management, Permanent 3 1 2 4 0 1 0 0 11 Professionally qualified and experienced specialists and mid-management, Permanent 62 8 7 11 72 4 5 13 182 Skilled technical and academically qualified workers, junior management, supervisors, 107 11 3 3 183 25 5 10 347 foremen, Permanent Semi-skilled and discretionary decision making, Permanent 44 0 0 0 37 0 0 0 81 Contract (Top Management), Permanent 1 0 0 0 0 1 0 0 2 Contract (Senior Management), Permanent 6 0 3 1 10 0 1 1 22 Contract (Professionally qualified), Permanent 3 0 0 0 2 0 0 0 5 Contract (Skilled technical), Permanent 1 0 0 0 0 0 0 0 1 Contract (Unskilled), Permanent 13 0 0 0 24 0 0 0 37 Total 240 20 15 19 328 31 11 24 688 Table 3.6.3 Recruitment for the period 1 April 2015 to 31 March 2016 Occupational band Male African Female Indian White African Coloured Coloured Professionally qualified and experienced specialists and mid-management, Permanent 1 0 0 0 1 0 0 0 2 Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 6 0 0 0 6 0 0 0 12 Semi-skilled and discretionary decision making, Permanent 8 0 0 0 4 0 0 0 12 Contract (Top Management), Permanent 1 0 0 0 0 0 0 0 1 Contract (Senior Management), Permanent 2 0 0 0 1 0 0 0 3 Contract (Skilled technical), Permanent 1 0 0 0 0 0 0 0 1 Contract (Unskilled), Permanent 13 0 0 0 24 0 0 0 37 Total 32 0 0 0 36 0 0 0 68 Employees with disabilities 0 0 0 0 0 0 0 0 0 Indian White Total 48

HUMAN RESOURCES REPORT Table 3.6.4 Promotions for the period 1 April 2015 to 31 March 2016 Occupational band Male African Female Indian White African Senior Management, Permanent 1 0 1 3 4 1 0 0 10 Professionally qualified and experienced specialists and 58 7 8 7 64 4 5 10 163 mid-management, Permanent Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 96 11 2 3 170 25 4 10 321 Semi-skilled and discretionary decision making, Permanent 67 0 0 0 62 0 0 0 129 Contract (Top Management), Permanent 0 0 0 0 1 1 0 0 2 Contract (Senior Management), Permanent 7 0 2 3 6 0 1 1 20 Contract (Professionally qualified), Permanent 2 0 0 0 1 0 0 0 3 Total 231 18 13 16 308 31 10 21 648 Employees with disabilities 9 0 1 0 18 0 0 1 29 Indian White Total Table 3.6.5 Terminations for the period 1 April 2015 to 31 March 2016 Occupational band Male African Female Indian White African Coloured Coloured Coloured Coloured Senior Management, Permanent 0 0 0 0 1 0 0 0 1 Professionally qualified and experienced specialists and mid-management, Permanent 3 1 0 0 2 0 0 0 6 Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 4 0 0 0 2 0 1 0 7 Semi-skilled and discretionary decision making, Permanent 0 0 0 0 1 0 0 0 1 Contract (Top Management), Permanent 3 0 0 0 1 0 0 0 4 Contract (Senior Management), Permanent 5 0 1 1 5 0 0 0 12 Contract (Professionally qualified), Permanent 0 0 0 1 0 0 0 0 1 Total 15 1 1 2 12 0 1 0 32 Employees with Disabilities 0 0 0 0 0 0 0 0 0 Indian White Total Table 3.6.6 Disciplinary action for the period 1 April 2015 to 31 March 2016 Disciplinary action Male Female Total African Coloured Indian White African Coloured Indian White Final Written Warning & 1 month suspension without pay 1 0 0 0 0 0 0 0 1 Dismissal 1 0 0 0 0 0 0 0 1 Total 2 0 0 0 0 0 0 0 2 49

Table 3.6.7 Skills development for the period 1 April 2015 to 31 March 2016 Occupational category Male Female Total African Coloured Indian White African C o - loured Indian White Legislators, senior officials and managers 2 0 0 0 0 1 0 0 3 Professionals 20 2 1 2 43 0 1 0 69 Technicians and associate professionals 2 0 0 0 7 0 0 0 9 Clerks 5 6 0 1 7 4 0 0 23 Service and sales workers 33 0 0 0 18 0 0 0 51 Skilled agriculture and fishery workers 0 0 0 0 0 0 0 0 0 Craft and related trades workers 0 0 0 0 0 0 0 0 0 Plant and machine operators and assemblers 0 0 0 0 0 0 0 0 0 Elementary occupations 0 0 0 0 0 0 0 0 0 Total 62 8 1 3 75 5 1 0 155 Employees with disabilities 2 0 0 0 3 0 0 0 5 3.7 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 3.7.1 Signing of Performance Agreements by SMS members as on 31 May 2015 SMS Level Total number of funded Total number of SMS Total number of signed SMS posts members performance agreements Signed performance agreements as % of total number of SMS members Director-General 0 0 0 0% Salary Level 16/ Head of Department 1 0 0 0% Salary Level 15 2 2 2 100% Salary Level 14 7 5 5 100% Salary Level 13 35 18 18 100% Total 45 25 25 100% Table 3.7.2 Reasons for not having concluded Performance agreements for all SMS members as on 31 March 2016 Reasons Table 3.7.3 Disciplinary steps taken against SMS members for not having concluded Performance agreements as on 31 March 2016 Reasons 50

HUMAN RESOURCES REPORT 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. Table 3.8.1 Performance Rewards by race, gender and disability for the period 1 April 2015 to 31 March 2016 Race and Gender Beneficiary Profile Cost Number of beneficiaries Number of employees % of total within group Cost (R 000) Average cost per employee African Male 108 231 46.8 1 407 13 025 Female 162 312 51.9 2 153 13 290 Asian Male 10 14 71.4 210 20 969 Female 8 11 72.7 145 18 071 Coloured Male 12 20 60 190 15 869 Female 14 31 45.2 188 13 448 White Male 12 19 63.2 320 26 665 Female 14 22 63.6 242 17 295 Total 352 688 51.2 4 994 14 187 Table 3.8.2 Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2015 to 31 March 2016 Beneficiary Profile Cost Salary band Number of beneficiaries Number of employees % of total within salary bands Total Cost (R 000) Average cost per employee Total cost as a % of the total personnel expenditure Skilled (Levels 3-5) 52 81 64.2 382 7 346 0.15 Highly skilled production (Levels 6-8) 175 347 50.4 2 172 12 411 0.85 Highly skilled supervision (Levels 9-12) 108 182 59.3 1 862 17 241 0.73 Contract (Levels 1-2) 0 37 0 0 0 0 Contract (Levels 6-8) 0 1 0 0 0 0 Contract (Levels 9-12) 2 5 40 38 19 000 0.01 Periodical Remuneration 0 5 0 0 0 0 Abnormal Appointment 0 38 0 0 0 0 Total 337 696 48.4 4454 13217 1.74 Table 3.8.3 Performance Rewards by critical occupation for the period 1 April 2015 to 31 March 2016 Beneficiary Profile Cost Critical occupation Number of beneficiaries Number of employees % of total within occupation Total Cost (R 000) Average cost per employee Administrative related 21 30 70 386 18 381 All artisans in the building metal machinery etc. 2 4 50 22 11 000 Cashiers tellers and related clerks 0 1 0 0 0 Client inform clerks(switchboard receptionist inform clerks) 5 10 50 46 9 200 Communication and information related 1 1 100 27 27 000 Computer programmers. 2 10 20 34 17 000 Computer system designers and analysts. 29 56 51.8 490 16 897 51

Beneficiary Profile Cost Critical occupation Number of beneficiaries Number of employees % of total within occupation Total Cost (R 000) Average cost per employee Finance and economics related 24 37 64.9 396 16 500 Financial and related professionals 8 9 88.9 141 17 625 Financial clerks and credit controllers 53 95 55.8 611 11 528 Food services aids and waiters 1 3 33.3 9 9 000 Head of department/chief executive offi cer 0 2 0 0 0 Human resources & organisational development & relate professional 33 77 42.9 457 13 848 Human resources clerks 24 97 24.7 289 12 042 Human resources related 20 33 60.6 290 14 500 Information technology related 9 14 64.3 171 19 000 Language practitioners interpreters & other communication 0 7 0 0 0 Legal related 0 1 0 0 0 Library mail and related clerks 14 39 35.9 161 11 500 Logistical support personnel 12 15 80 149 12 417 Material-recording and transport clerks 5 6 83.3 47 9 400 Messengers porters and deliverers 3 4 75 23 7 667 Other administration & related clerks and organisers 1 2 50 9 9 000 Other information technology personnel. 20 41 48.8 351 17 550 Other occupations 1 2 50 19 19 000 Risk management and security services 3 3 100 37 12 333 Secretaries & other keyboard operating clerks 12 16 75 149 12 417 Security offi cers 37 48 77.1 262 7 081 Senior managers 12 25 48 419 34 917 Total 352 688 51.2 4995 14190 Table 3.8.4 Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2015 to 31 March 2016 Salary band Beneficiary Profile Number of beneficiaries Number of employees % of total within salary bands Cost Total Cost (R 000) Average cost per employee Total cost as a % of the total personnel expenditure Band A 14 26 53.8 496 35 429 0.19 Band B 1 7 14.3 44 44 000 0.01 Band C 0 1 0 0 0 0 Band D 0 1 0 0 0 0 Total 15 35 42.9 540 36000 0.21 *Data on paragraph 3.8 represents the 2014/15 financial year, PMDS outcomes. (Reporting on this area is retrospective). 3.9 Foreign Workers The tables below summarise the employment of foreign nationals in the Department in terms of salary band and major occupation. Table 3.9.1 Foreign workers by salary band for the period 1 April 2015 and 31 March 2016 Salary Band 01 April 2015 31 March 2016 Change Number % of total Number % of total Number % Change Highly skilled supervision (Lev. 9-12) 1 100 0 0-1 100 Total 1 100 0 0-1 100 52

HUMAN RESOURCES REPORT Table 3.9.2 Foreign workers by major occupation for the period 1 April 2015 and 31 March 2016 Major Occupation 01 April 2015 31 March 2016 Change Number % of total Number % of total Number % Change Administrative office workers 1 100 0 0-1 100 Total 1 100 0 0-1 100 3.10 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 3.10.1 Sick leave for the period 1 January 2015 to 31 December 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) 346 85.5 55 7.6 6 209 Highly skilled production (Levels 6-8) 2617 73.9 392 54.5 7 2 798 Highly skilled supervision (Levels 9-12) 1160 73.3 230 32 5 2 315 Senior management (Levels 13-16) 79 83.5 12 1.7 7 261 Contract (Levels 9-12) 17 52.9 3 0.4 6 54 Contract (Levels 13-16) 151 70.9 27 3.8 6 568 Total 4370 74.7 719 100 6 6205 Table 3.10.2 Disability leave (temporary and permanent) for the period 1 January 2015 to 31 December 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) 155 99.4 5 20 31 107 Highly skilled production (Levels 6-8) 115 100 11 44 10 120 Highly skilled supervision (Levels 9-12) 41 82.9 8 32 5 81 Senior management (Levels 13-16) 7 100 1 4 7 22 Total 318 97.5 25 100 13 330 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 3.10.3 Annual Leave for the period 1 January 2015 to 31 December 2015 Salary band Total days taken Average per employee Number of Employees using annual leave Skilled (Levels 3-5) 1457.92 19 75 Highly skilled production (Levels 6-8) 10970.92 19 574 Highly skilled supervision (Levels 9-12) 6711 18 363 Senior management (Levels 13-16) 358 20 18 Contract (Levels 6-8) 20 10 2 Contract (Levels 9-12) 102 20 5 Contract (Levels 13-16) 845 18 46 Total 20464.84 19 1083 53

Table 3.10.4 Capped leave for the period 1 January 2015 to 31 December 2015 Salary band Total days of capped leave taken Number of Employees using capped leave Average number of days taken per employee Average capped leave per employee as at 31 December 2015 Lower skilled (Levels 1-2) - - - - Skilled Levels 3-5) - - - - Highly skilled production (Levels 6-8) 28 5 6 23 Highly skilled supervision(levels 9-12) 2 2 1 36 Senior management (Levels 13-16) - - - - Total 30 7 4 29 The following table summarise payments made to employees as a result of leave that was not taken. Table 3.10.5 Leave payouts for the period 1 April 2015 and 31 March 2016 Reason Total amount (R 000) Number of employees Average per employee (R 000) Leave payout for 2015/16 due to non-utilisation of leave for the previous cycle - - - Capped leave payouts on termination of service for 2015/16 632 19 33263 Current leave payout on termination of service for 2015/16 310 11 28182 Total 942 30 31400 3.11 HIV/AIDS & Health Promotion Programmes Table 3.11.1 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) Employees who are at risk of contracting HIV and related illnesses in the Department are: Employees who have are misinformed about how HIV is transmitted Employees who have multiple partners and who are not using protection Employees who have no access to femidoms and condoms Individuals that show dependency on substance abuse Key steps taken to reduce the risk During the year under review, the programme intensified robust HIV counselling, testing and awareness, spiritual wellness and financial literacy programmes in an effort towards disease management and reduction of preventable deaths. Creating awareness by educating staff through training interventions. Prevent new infections through condom distribution and organising wellness days where voluntary testing takes place. Provide support to the infected and affected by offerring counselling services through the appointed service provider, Careways. 54

HUMAN RESOURCES REPORT Table 3.11.2 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 x Mr. Sibusiso Nhlapo - Acting Director: Human Resource Management. 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 specific staff members to promote the health and well-being of your employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose. x Labour Relations & Employee Health & Wellness Programme (LR & EHWP) 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. x x x x x x The department has a comprehensive Health and Wellness programme for all employees. Key elements are: Wellness management, Occupational Health and Safety and Disease Management. Departmental Transformation Committee. Benjamin Ngidi (Chairperson) Sibusiso Nhlapo Bibi Matentshi Bongani Nyameko Wanda Pendu Dhovani Ramunenyiwa Ayanda Shangase Ntlhane Bopape Amukelani Mboweni Menze Menyezwa Sithembiso Ndlovu Phillip Maibi Leon Steyn HIV/AIDS & TB Management Policy Health & Productivity Management Policy Occupational Health & Safety Policy SHERQ Policy Wellness Management Policy Succession Planning Framework Recruitment Policy Awareness campaigns on protection of HIV employees against discrimination were held during the year under review Wellness week campaigns are held on a quarterly basis whereby Voluntary Testing is encouraged Each Wellness Pillar has a monitoring and evaluation tool that guides the implementation process. The Monitoring tools are in line with the ISO standards 3.12 Labour Relations Table 3.12.1 Collective agreements for the period 1 April 2015 and 31 March 2016 Total Number of Collective Agreements The following table summarises the outcome of disciplinary hearings conducted within the department for the year under review. Table 3.12.2 Misconduct and disciplinary hearings finalised for the period 1 April 2015 and 31 March 2016 Outcomes of Disciplinary Hearings Number % of total Final written warning & Suspended without pay 1 33.33% Dismissal 1 33.33% Dismissal and the appeal was successful 1 33.33% Total 3 100% 55

Table 3.12.3 Types of misconduct addressed at disciplinary hearings for the period 1 April 2015 and 31 March 2016 Type of Misconduct Number % of total Conducting remunerative work outside Public Service 1 33.33% Financial Misconduct 1 33.33% Improper Conduct and using the abusive language at the workplace 1 33.33% Total 3 100% Table 3.12.4 Grievances logged for the period 1 April 2015 and 31 March 2016 Grievances Number % of Total Number of grievances resolved 22 100% Number of grievances not resolved 0 0% Total number of grievances lodged 22 100% Table 3.12.5 Disputes logged with Councils for the period 1 April 2015 and 31 March 2016 Disputes Number % of Total Number of disputes upheld 0 0% Number of disputes dismissed 0 0% Total number of disputes lodged 0 Table 3.12.6 Strike actions for the period 1 April 2015 and 31 March 2016 Total number of persons working days lost 0 Total costs working days lost 0 Amount recovered as a result of no work no pay (R 000) 0 3.13 Skills Development This section highlights the efforts of the department with regard to skills development. Table 3.13.1 Training needs identified for the period 1 April 2015 and 31 March 2016 Occupational category Gender Number of employees as at 1 April 2015 Training needs identified at start of the reporting period Learnerships Skills Programmes & other short courses Other forms of training Legislators, senior officials and managers Female 14 0 13 0 13 Male 16 0 13 0 13 Professionals Female 163 0 70 0 70 Male 122 0 70 0 70 Technicians and associate professionals Female 26 0 10 0 10 Male 20 0 0 0 0 Clerks Female 146 0 70 0 70 Male 81 0 30 0 30 Service and sales workers Female 26 0 10 0 10 Male 20 0 10 0 10 Skilled agriculture and fishery workers Female 0 0 0 0 0 Male 0 0 0 0 0 Craft and related trades workers Female 0 0 0 0 0 Male 4 0 4 0 4 Plant and machine operators and assemblers Female 0 0 0 0 0 Male 0 0 0 0 0 Elementary occupations Female 20 0 0 0 0 Male 37 0 0 0 0 Sub Total Female 395 0 173 0 173 Male 300 0 127 0 127 Total 695 0 300 0 300 Total 56

HUMAN RESOURCES REPORT Table 3.13.2 Training provided for the period 1 April 2015 and 31 March 2016 Occupational category Gender Number of employees as at 1 April 2015 Training provided within the reporting period Learnerships Skills Programmes & other short courses Other forms of training Legislators, senior officials and managers Female 14 0 0 1 1 Male 16 0 0 2 2 Professionals Female 163 0 23 25 48 Male 122 0 7 14 21 Technicians and associate professionals Female 26 0 3 4 7 Male 20 0 1 1 2 Clerks Female 146 4 1 10 15 Male 81 1 1 6 8 Service and sales workers Female 26 0 18 1 19 Male 20 0 32 0 32 Skilled agriculture and fishery workers Female 0 0 0 0 0 Male 0 0 0 0 0 Craft and related trades workers Female 0 0 0 0 0 Male 4 0 0 0 0 Plant and machine operators and assemblers Female 0 0 0 0 0 Male 0 0 0 0 0 Elementary occupations Female 20 0 0 0 0 Male 37 0 0 0 0 Sub Total Female 395 4 45 41 90 Male 300 1 41 23 65 Total 695 5 86 64 155 Total 3.14 Injury on duty The following tables provide basic information on injury on duty. Table 3.14.1 Injury on duty for the period 1 April 2015 and 31 March 2016 Nature of injury on duty Number % of total Required basic medical attention only 4 100 Temporary Total Disablement 0 0 Permanent Disablement 0 0 Fatal 0 0 Total 4 57

HUMAN RESOURCES REPORT 3.15. Utilisation of Consultants The following tables relates information on the utilisation of consultants in the department. In terms of the Public Service Regulations consultant means a natural or juristic person or a partnership who or which provides in terms of a specific contract on an ad hoc basis any of the following professional services to a department against remuneration received from any source: (a) The rendering of expert advice; (b) The drafting of proposals for the execution of specific tasks; and (c) The execution of a specific task which is of a technical or intellectual nature, but excludes an employee of a department. Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2015 and 31 March 2016 Project Title Total number of consultants that Duration (Work Days) Contract value in (work days) worked on project Rand Professional Services 67 364 7 467 687,73 Total 67 364 7 467 687,73 Table 3.15.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2015 and 31 March 2016 Project Title Percentage ownership by HDI Percentage management by Number of consultants from groups HDI groups HDI groups that work on the project Professional Services 71% 75% 64 58

PART E - 1. Report of the Auditor General 60 2. Statement 62 3. Notes To The Statement 83 4. Statement of Financial Performance 84 5. Statement of Financial Position 85 6. Statement of Changes In Net Assets 86 7. Cash Flow Statement 87 8. Accounting Policies 88 9. Notes To The Annual Financial Statements 93 10. Annexures To The Annual Financial Statements 123

1. REPORT OF THE AUDITOR-GENERAL TO GAUTENG PROVINCIAL LEGISLATURE ON VOTE NO. 13: GAUTENG DEPARTMENT OF e-government Report on the financial statements Introduction 1. I have audited the financial statements of the Gauteng Department of e-government set out on pages 62 to 129, which comprise the appropriation statement, the statement of financial position as at 31 March 2016, the statement of financial performance, statement of changes in net assets, and cash flow statement 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 of these financial statements in accordance with the Modified Cash Standards prescribed by the National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and Division of Revenue Act of South Africa (Act No. 1 of 2010) (DoRA) 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 the International Standards on Auditing. Those standards require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the department s preparation 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 department s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion 6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Gauteng Department of e-government as at 31 March 2016 and its financial performance and cash flows for the year then ended in accordance with the Modified Cash Standards and the requirements of PFMA. 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 objectives presented in the annual performance report, compliance with legislation and internal control. The objective of my tests was to identify reportable findings as described under each subheading but not to gather evidence to express assurance on these matters. Accordingly, I do not express an opinion or conclusion on these matters. Predetermined objectives 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 2016: Programme 2: Information communication technology shared services on pages 22 to 26. Programme 3: Business process services on pages 27 to 29. 9. 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 (FMPPI). 60

11. I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete. 12. I did not raise any material findings relating to the usefulness and reliability of the reported performance information for the selected programmes. Additional matter 13. Although I identified no material findings on the usefulness and reliability of the reported performance information for the selected programmes, I draw attention to the following matter: Achievement of planned targets Internal control 17. I considered internal control relevant to my audit of the financial statements, the performance report and compliance with legislation. 18. I did not identify any significant deficiencies in internal control Investigations 19. The department initiated investigations into allegations of fraud, supply chain and financial misconduct. All investigations have been completed and reports issued at the time of this report. 14. Refer to the annual performance report on pages 14 to 29 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. Johannesburg 31 July 2016 16. I did not identify any instances of material non-compliance with selected specific requirements of applicable legislation, as set out in the general notice issued in terms of the PAA. 61

APPROPRIATION STATEMENT for the year ended 31 March 2016 Per Programme Programme Adjusted Shifting of Funds 2015/16 2014/15 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 1. Administration 197 289 - (4 266) 193 023 173 053 19 970 89.7 223 806 191 385 2. ICT Shared Services 894 758-8 197 902 955 900 977 1 978 99.8 998 382 992 175 3. Business Process Services 86 756 - (3 931) 82 825 82 023 802 99.0 159 200 155 395 4. Gauteng Audit Services - - - - - - - 56 376 53 198 Total 1 178 803 - - 1 178 803 1 156 053 22 750 98.1 1 437 764 1 392 153 Reconciliation with statement of financial performance Departmental receipts 1 807 2 150 Actual amounts per statement of financial performance (total revenue) 1 180 610 1 439 914 Actual amounts per statement of financial performance (total expenditure) 1 156 053 1 392 153 62

APPROPRIATION STATEMENT for the year ended 31 March 2016 per economic classification Adjusted Shifting of Funds Virement 2015/16 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 Economic classification Current 1 022 905 (212 201) (8 197) 802 507 779 757 22 750 97.2 990 120 944 595 payments Compensation 301 464 (20 089) (8 197) 273 178 271 830 1 348 99.5 439 048 426 997 of employees Salaries and 263 666 (18 619) (7 521) 237 526 236 382 1 144 99.5 379 844 372 304 wages Social 37 798 (1 470) (676) 35 652 35 448 204 99.4 59 204 54 693 contributions Goods and 721 441 (192 112) - 529 329 507 927 21 402 96.0 551 072 517 598 services Administrative 1 656 (87) - 1 569 1 421 148 90.6 623 492 fees Advertising 1 795 (890) - 905 856 49 94.6 921 921 Minor assets 1 769 (1 392) - 377 377-100.0 1 834 1 816 Audit costs: 5 753 (2 080) - 3 673 3 673-100.0 5 536 5 536 External Bursaries: 881 173-1 054 1 054-100.0 1 733 1 733 Employees Catering: 109 10-119 98 21 82.4 81 52 Departmental activities Communication 7 846 (3 233) - 4 613 4 613-100.0 7 177 7 177 Computer 579 711 (156 513) - 423 198 420 927 2 271 99.5 420 509 420 459 services Consultants: 8 601 (1 113) - 7 488 7 468 20 99.7 12 906 10 782 Business and advisory services Legal services 2 779 (223) - 2 556 1 464 1 092 57.3 3 519 1 381 Contractors 16 615 (12 013) - 4 602 4 506 96 97.9 12 346 7 996 Fleet services 605 (208) - 397 397-100.0 428 428 Consumable supplies 757 523-1 280 986 294 77.0 138 127 63

APPROPRIATION STATEMENT for the year ended 31 March 2016 per economic classification Consumable: Stationery, printing and office supplies Adjusted Shifting of Funds Virement 2015/16 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 000 637 1 160-1 797 1 749 48 97.3 1 680 1 680 Operating leases 39 787 (10 674) - 29 113 28 007 1 106 96.2 29 399 28 841 Property 43 049 (8 396) - 34 653 19 015 15 638 54.9 43 254 19 979 payments Travel and 1 776 (798) - 978 968 10 99.0 1 659 1 656 subsistence Training and 1 557 159-1 716 1 637 79 95.4 3 213 3 154 development Operating 2 830 291-3 121 2 733 388 87.6 2 565 2 285 payments Venues and 2 890 3 188-6 078 5 973 105 98.3 1 551 1 103 facilities Rental and hiring 38 4-42 5 37 11.9 - - Transfers and 525 22 973-23 498 23 498-100.0 2 089 2 082 subsidies Departmental - - - - - - - 1 589 1 589 agencies and accounts Departmental - - - - - - - 1 589 1 589 agencies and accounts Higher education - 22 800-22 800 22 800-100.0 - - institutions Households 525 173-698 698-100.0 500 493 Social benefits 525 173-698 698-100.0 500 493 Payments for capital assets 155 373 188 887 8 197 352 457 352 457-100.0 445 346 445 267 64

APPROPRIATION STATEMENT for the year ended 31 March 2016 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 Machinery and 47 869 194 365 8 197 250 431 250 431-100.0 320 893 320 893 equipment Transport - 855-855 855-100.0 1 587 1 587 equipment Other machinery 47 869 193 510 8 197 249 576 249 576-100.0 319 306 319 306 and equipment Intangible assets 107 504 (5 478) - 102 026 102 026-100.0 124 453 124 374 - - - - - - - Payments for - 341-341 341-100.0 209 209 financial assets TOTAL 1 178 803 - - 1 178 803 1 156 053 22 750 98.1 1 437 764 1 392 153 65

APPROPRIATION STATEMENT for the year ended 31 March 2016 Programme 1: ADMINISTRATION Sub programme Adjusted Shifting of Funds Virement Final Actual Variance Expenditure as % of final 2015/16 2014/15 Final Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 1. OFFICE OF THE HOD 7 308 (15) (554) 6 739 6 518 221 96.7 5 685 5 074 2. RISK MANAGEMENT 3 156 - (275) 2 881 2 787 94 96.7 2 789 2 750 3. OFFICE OF THE CFO 47 154 13 851-61 005 60 997 8 100.0 35 892 31 829 4. CORPORATE SERVICES 139 671 (13 836) (3 437) 122 398 102 751 19 647 83.9 164 574 136 884 5. FORENSIC SERVICES - - - - - - - 14 866 14 848 Total for sub programmes 197 289 - (4 266) 193 023 173 053 19 970 89.7 223 806 191 385 conomic classification Current payments 196 682 (24 715) (4 266) 167 701 147 731 19 970 88.1 219 445 187 040 Compensation of employees 102 037 (273) (4 266) 97 498 96 152 1 346 98.6 135 990 134 492 Salaries and wages 88 484 (273) (4 266) 83 945 82 802 1 143 98.6 117 160 115 744 Social contributions 13 553 - - 13 553 13 350 203 98.5 18 830 18 748 Goods and services 94 645 (24 442) - 70 203 51 579 18 625 73.5 83 455 52 548 Administrative fees 1 490 (87) - 1 403 1 403-100.0 456 456 Advertising 1 770 (883) - 887 856 31 96.5 635 635 Minor assets 1 524 (1 385) - 139 139-100.0 259 241 Audit costs: External 5 753 (2 080) - 3 673 3 673-100.0 5 536 5 536 Bursaries: Employees 881 173-1 054 1 054-100.0 1 733 1 733 Catering: Departmental activities 88 10-98 78 20 79.6 73 46 Communication 1 050 37-1 087 1 087-100.0 1 846 1 846 Computer services 415 (274) - 141 140 1 99.3 128 128 Consultants: Business and advisory 2 101 (940) - 1 161 1 141 20 98.3 1 943 1 943 services Legal services 2 779 (223) - 2 556 1 464 1 092 57.3 3 519 1 381 Contractors 14 991 (13 271) - 1 720 1 671 49 97.2 5 577 1 338 Fleet services 605 (208) - 397 397-100.0 428 428 66

APPROPRIATION STATEMENT for the year ended 31 March 2016 Programme 1: ADMINISTRATION Adjusted Shifting of Funds Virement Final Actual Variance Expenditure as % of final 2015/16 2014/15 Final Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Consumable supplies 757 (160) - 597 303 294 50.8 107 96 Consumable: Stationery, printing 637 1 153-1 790 1 742 48 97.3 1 602 1 602 and office supplies Operating leases 9 533 (1 726) - 7 807 6 701 1 106 85.8 8 055 7 520 Property payments 42 165 (7 878) - 34 287 18 687 15 600 54.5 43 018 19 743 Travel and subsistence 1 299 (378) - 921 911 10 98.9 1 659 1 656 Training and development 1 539 156-1 695 1 617 78 95.4 3 213 3 154 Operating payments 2 625 334-2 959 2 699 260 91.2 2 179 1 963 Venues and facilities 2 643 3 184-5 827 5 812 15 99.7 1 489 1 103 Rental and hiring - 4-4 4-100.0 - - Transfers and subsidies 362 22 790-23 152 23 152-100.0 1 789 1 782 Departmental agencies and accounts - - - - - - - 1 589 1 589 Departmental agencies - - - - - - - 1 589 1 589 Higher education institutions - 22 800-22 800 22 800-100.0 - - Households 362 (10) - 352 352-100.0 200 193 Social benefits 362 (10) - 352 352-100.0 200 193 Payments for capital assets 245 1 868-2 113 2 113-100.0 2 493 2 484 Machinery and equipment 245 1 855-2 100 2 100-100.0 2 484 2 484 Transport equipment - 855-855 855-100.0 1 587 1 587 Other machinery and equipment 245 1 000-1 245 1 245-100.0 897 897 Intangible assets - 13-13 13-100.0 9 - Payments for financial assets - 57-57 57-100.0 79 79 Total 197 289 - ( 4 266) 193 023 173 053 19 970 89.7 223 806 191 385 67

APPROPRIATION STATEMENT for the year ended 31 March 2016 1.1 OFF C OF TH HOD 2015/16 2014/15 conomic classification Adjusted Shifting of Funds Virement Final Actual Variance Expenditure as of final Final Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments 7 136 - (554) 6 582 6 361 221 96.6 5 604 4 993 Compensation of employees 6 249 - (554) 5 695 5 694 1 100.0 4 405 4 405 Goods and services 887 - - 887 667 220 75.2 1 199 588 Transfers and subsidies 134 - - 134 134-100 - - Households 134 - - 134 134-100 - - Payments for capital assets 38 (15) - 23 23-100.0 81 81 Machinery and equipment 38 (15) - 23 23-100.0 81 81 Total 7 308 (15) (554) 6 739 6 518 221 96.7 5 685 5 074 1.2 R S MANAG M NT 2015/16 2014/15 Adjusted Shifting of Funds Virement Final Actual Expenditure Variance Expenditure as of final appropriation Final Actual expenditure conomic classification R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 Current payments 3 152 (11) (275) 2 866 2 772 94 96.7 2 789 2 750 Compensation of employees 3 088 (11) (275) 2 802 2 712 90 96.8 2 704 2 703 Goods and services 64 - - 64 60 4 93.8 85 47 Transfers and subsidies 4 - - 4 4-100.0 - - Households 4 - - 4 4-100.0 - - Payments for financial assets - 11-11 11-100.0 - - Total 3 156 - (275) 2 881 2 787 94 96.7 2 789 2 750 68

APPROPRIATION STATEMENT for the year ended 31 March 2016 1.3 OFF C OF TH CFO Adjusted Shifting of Funds Virement Final Actual Expenditure Variance 2015/16 2014/15 Expenditure as of final appropriation Final Actual expenditure conomic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments 47 097 (9 834) - 37 263 37 254 9 100.0 35 723 31 660 Compensation of employees 19 917 738-20 655 20 655-100.0 17 270 17 270 Goods and services 27 180 (10 572) - 16 608 16 599 9 99.9 18 453 14 390 Transfers and subsidies - 22 838-22 838 22 839 (1) 100.0 59 59 Higher education institutions 22 800 22 800 22 800-100.0 - - Households - 38-38 39 (1) 102.6 59 59 Payments for capital assets 57 801-858 858-100.0 110 110 Machinery and equipment 57 788-845 845-100.0 110 110 Intangible assets 13-13 13-100.0 Payments for financial - 46-46 46-100.0 - - assets Total 47 154 13 851-61 005 60 997 8 100.0 35 892 31 829 69

APPROPRIATION STATEMENT for the year ended 31 March 2016 1.4 CORPORAT S RV C S Adjusted Shifting of Funds Virement Final Actual Expenditure Variance 2015/16 2014/15 Expenditure as of final appropriation Final Actual expenditure conomic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments 139 297 (14 870) (3 437) 120 990 101 344 19 646 83.8 160 472 132 789 Compensation of employees 72 783 (1 000) (3 437) 68 346 67 091 1 255 98.2 96 789 95 292 Goods and services 66 514 (13 870) - 52 644 34 253 18 391 65.1 63 683 37 497 Transfers and subsidies 224 (48) - 176 175 1 99.4 1 730 1 723 Provinces and municipalities Departmental agencies and accounts - - - - - - - 1 589 1 589 Households 224 (48) - 176 175 1 99.4 141 134 Payments for capital assets 150 1 082-1 232 1 232-100.0 2 293 2 293 Machinery and equipment 150 1 082-1 232 1 232-100.0 2 293 2 293 Payments for financial assets - - - - - - - 79 79 Total 139 671 (13 836) (3 437) 122 398 102 751 19 647 83.9 164 574 136 884 70

APPROPRIATION STATEMENT for the year ended 31 March 2016 1.5 FOR NS C S RV C S Adjusted Shifting of Funds Virement Final Actual Expenditure Variance 2015/16 2014/15 Expenditure as of final appropriation Final Actual expenditure conomic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments - - - - - - - 14 857 14 848 Compensation of - - - - - - - 14 822 14 822 employees Goods and services - - - - - - - 35 26 Payments for capital - - - - - - - 9 - assets Intangible assets - - - - - - - 9 - Total - - - - - - - 14 866 14 848 Programme 2: CT SHAR D S RV C S Adjusted Shifting of Funds Virement Final Actual Expenditure Variance 2015/16 2014/15 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. ICT PROGRAMME SUPPORT 2 092 69-2 161 2 161-100.0 1 803 1 607 2. APPLICATIONS 568 099 103 525 8 197 679 821 677 843 1 978 99.7 743 324 741 848 3. ICT INFRASTRUCTURE 298 968 (91 876) - 207 092 207 092-100.0 234 371 229 939 4. BUSINESS ALIGNMENT 25 599 (11 718) - 13 881 13 881-100.0 18 884 18 781 Total for sub programmes 894 758-8 197 902 955 900 977 1 978 99.8 998 382 992 175 conomic classification Current payments 739 503 (187 321) - 552 182 550 204 1 978 99.6 555 420 549 213 Compensation of employees 114 059 (19 651) - 94 408 94 406 2 100.0 93 808 87 601 71

APPROPRIATION STATEMENT for the year ended 31 March 2016 Programme 2: CT SHAR D S RV C S Adjusted Shifting of Funds Virement Final Actual Expenditure Variance 2015/16 2014/15 Expenditure as of final appropriation Final Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Salaries and wages 102 702 (18 205) - 84 497 84 496 1 100.0 82 912 78 694 Social contributions 11 357 (1 446) - 9 911 9 910 1 100.0 10 896 8 907 Goods and services 625 444 (167 670) - 457 774 455 798 1 976 99.6 461 612 461 412 Minor assets 245 (7) - 238 238-100.0 1 575 1 575 Communication 6 796 (3 270) - 3 526 3 526-100.0 5 331 5 331 Computer services 578 848 (156 239) - 422 609 420 633 1 976 99.5 419 942 419 942 Consultants: Business and 6 500 (173) - 6 327 6 327-100.0 6 526 6 526 advisory services Contractors 1 493 1 260-2 753 2 753-100.0 6 657 6 657 Consumable supplies - 681-681 681-100.0 31 31 Consumable: Stationery, - - - - - - - 78 78 printing and office supplies Operating leases 30 124 (8 948) - 21 176 21 177 (1) 100.0 21 233 21 233 Property payments 798 (518) - 280 280-100.0 168 168 Travel and subsistence 477 (420) - 57 57-100.0) - - Training and development 18 3-21 20 1 95.2 - - 72

APPROPRIATION STATEMENT for the year ended 31 March 2016 Programme 2: CT SHAR D S RV C S Adjusted Shifting of Funds 2015/16 2014/15 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 Operating payments 75 (43) - 32 32-100.0 71 71 Venues and facilities 70 4-74 74-100.0 - - Transfers and subsidies 127 18-145 145-100.0 207 207 Households 127 18-145 145-100.0 207 207 Social benefits 127 18-145 145-100.0 207 207 Payments for capital assets 155 128 187 019 8 197 350 344 350 344-100.0 442 755 442 755 Machinery and equipment 47 624 192 510 8 197 248 331 248 331-100.0 318 398 318 398 Other machinery and 47 624 192 510 8 197 248 331 248 331-100.0 318 398 318 398 equipment Intangible assets 107 504 (5 491) - 102 013 102 013-100.0 124 357 124 357 Payments for financial assets - 284-284 284-100.0 - - Total 894 758-8 197 902 955 900 977 1 978 99.8 998 382 992 175 2.1 CT PROGRAMM SUPPORT Adjusted Shifting of Funds Virement Final Actual Expenditure Variance 2015/16 2014/15 Expenditure as of final appropriation Final Actual expenditure conomic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments 2 092 51-2 143 2 143-100.0 1 803 1 607 Compensation of employees 2 092 51-2 143 2 143-100.0 1 803 1 607 Transfers and subsidies - 18-18 18-100.0 - - Households - 18-18 18-100.0 - - Total 2 092 69-2 161 2 161-100.0 1 803 1 607 73

APPROPRIATION STATEMENT for the year ended 31 March 2016 2.2 APP CAT ONS Adjusted Shifting of Funds Virement Final Actual Expenditure Variance 2015/16 2014/15 Expenditure as of final appropriation Final Actual expenditure conomic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments 440 571 (98 070) - 342 501 340 523 1 978 99.4 318 348 316 872 Compensation of employees 43 727 (3 723) - 40 004 40 002 2 100.0 37 490 36 014 Goods and services 396 844 (94 347) - 302 497 300 521 1 976 99.3 280 858 280 858 Transfers and subsidies 28 - - 28 28-100.0 40 40 Households 28 - - 28 28-100.0 40 40 Payments for capital assets 127 500 201 312 8 197 337 009 337 009-100.0 424 936 424 936 Buildings and other fixed structures Machinery and equipment 27 500 201 312 8 197 237 009 237 009-100.0 300 908 300 908 Intangible assets 100 000 - - 100 000 100 000-100.0 124 028 124 028 Payments for financial assets 283-283 283-100.0 - - Total 568 099 103 525 8 197 679 821 677 843 1 978 99.7 743 324 741 848 74

APPROPRIATION STATEMENT for the year ended 31 March 2016 2.3 CT NFRASTRUCTUR Adjusted Shifting of Funds Virement Final Actual Expenditure Variance 2015/16 2014/15 Expenditure as of final appropriation Final Actual expenditure conomic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments 271 241 (77 584) - 193 657 193 657-100.0 216 774 212 342 Compensation of employees 48 081 (9 482) - 38 599 38 599-100.0 41 780 37 348 Goods and services 223 160 (68 102) - 155 058 155 058-100.0 174 994 174 994 Transfers and subsidies 99 - - 99 99-100.0 107 107 Households 99 - - 99 99-100.0 107 107 Payments for capital assets 27 628 (14 293) - 13 335 13 335-100.0 17 490 17 490 Machinery and equipment 20 124 (8 802) - 11 322 11 322-100.0 17 490 17 490 Intangible assets 7 504 (5 491) - 2 013 2 013-100.0 - - Payments for financial assets 1-1 1-100.0 - - Total 298 968 (91 876) - 207 092 207 092-100.0 234 371 229 939 2.4 BUS N SS A GNM NT Adjusted Shifting of Funds 2015/16 2014/15 Virement Final Actual Expenditure Variance Expenditure as of final appropriation Final Actual expenditure conomic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments 25 599 (11 718) - 13 881 13 881-100.0 18 495 18 392 Compensation of employees 20 159 (6 497) - 13 662 13 662-100.0 12 735 12 632 Goods and services 5 440 (5 221) - 219 219-100.0 5 760 5 760 Transfers and subsidies - - - - - - - 60 60 Households - - - - - - - 60 60 Payments for capital assets - - - - - - - 329 329 Intangible assets - - - - - - - 329 329 Total 25 599 (11 718) - 13 881 13 881-100.0 18 884 18 781 75

APPROPRIATION STATEMENT for the year ended 31 March 2016 Programme 3: BUS N SS PROC SS S RV C S Adjusted Shifting of Funds 2015/16 2014/15 Virement Final Actual Expenditure Variance Expenditure as of final Final Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Sub programme 1. HUMAN RESOURCES 86 756 - (3 931) 82 825 82 023 802 99.0 101 385 99 354 2. PROCUREMENT SERVICES - - - - - - - 57 815 56 041 Total for sub programmes 86 756 - (3 931) 82 825 82 023 802 99.0 159 200 155 395 conomic classification Current payments 86 720 (165) (3 931) 82 624 81 822 802 99.0 158 926 155 191 Compensation of employees 85 368 (165) (3 931) 81 272 81 272-100.0 155 906 153 910 Salaries and wages 72 480 (141) (3 255) 69 084 69 084-100.0 132 777 132 589 Social contributions 12 888 (24) (676) 12 188 12 188-100.0 23 129 21 321 Goods and services 1 352 - - 1 352 550 802 40.7 3 020 1 281 Administrative fees 166 - - 166 18 148 10.8 166 35 Advertising 25 (7) - 18-18 - 286 286 Catering: Departmental activities 21 - - 21 20 1 95.2 8 6 Computer services 448 - - 448 154 294 34.4 439 389 Contractors 131 (2) - 129 82 47 63.6 112 1 Consultant: Business and advisory 1 636 277 services Consumable supplies - 2-2 2-100.0 - - Consumable: Stationery, printing and - 7-7 7-100.0 - - office supplies Operating leases 130 - - 130 129 1 99.2 111 88 Property payments 86 - - 86 48 38 55.8 68 68 Operating payments 130 - - 130 2 128 1.5 132 131 Venues and facilities 177 - - 177 87 90 49.2 62 - Rental and hiring 38 - - 38 1 37 2.6 - - 76

APPROPRIATION STATEMENT for the year ended 31 March 2016 Programme 3: BUS N SS PROC SS S RV C S Adjusted Shifting of Funds 2015/16 2014/15 Virement Final Actual Expenditure Variance Expenditure as of final Final Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Transfers and subsidies 39 165-201 201-100.0 57 57 Households 36 165-201 201-100.0 57 57 Social benefits 36 165-201 201-100.0 57 57 Payments for capital assets - - - - - - - 87 17 Intangible assets - - - - - - - 87 17 Payments for financial assets - - - - - - - 130 130 Total 86 756 - (3 931) 82 825 82 023 802 99.0 159 200 155 395 3.1 HUMAN R SOURC S Adjusted Shifting of Funds 2015/16 2014/15 Virement Final Actual Expenditure Variance Expenditure as of final Final Actual expenditure conomic classification R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments 86 720 (165) (3 931) 82 624 81 822 802 99.0 101 253 99 291 Compensation of employees 85 368 (165) (3 931) 81 272 81 272-100.0 100 178 98 595 Goods and services 1 352 - - 1 352 550 802 40.7 1 075 696 Transfers and subsidies 36 165-201 201-100.0 49 49 Households 36 165-201 201-100.0 49 49 Payments for capital assets - - - - - - - 69 - Intangible assets - - - - - - - 69 - Payments for financial assets - - - - - - - 14 14 Total 86 756 - (3 931) 82 825 82 023 802 99.0 101 385 99 354 77

APPROPRIATION STATEMENT for the year ended 31 March 2016 3.2 PROCUREMENT SERVICES 2015/16 2014/15 Adj usted Shifting of Funds Virement Final Actual Expenditure Variance Expenditure as o final Final Actual expenditure appropriation cono ic classifica ion R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments - - - - - - - 57 673 55 900 Compensation of employe es - - - - - - - 55 728 55 315 Goods and services - - - - - - - 1 945 585 Transfers and subsidies - - - - - - - 8 8 Households - - - - - - - 8 8 Payments for capital assets - - - - - - - 18 17 Intangib le assets - - - - - - - 18 17 Pay en s or financial asse s - - - - - - - 116 116 Total - - - - - - - 57 815 56 041 78

APPROPRIATION STATEMENT for the year ended 31 March 2016 Programme 4: GAUTENG AUDIT SERVICES Sub programme Adj usted Shifting of Funds 2015/16 2014/15 Virement Final Actual Expenditure Variance Expenditure as o final appropriation Final Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 1. GAS PROGRAMME SUPPORT - - - - - - - 4 595 3 766 2. 2 SUP - - - - - - - 14 430 14 196 3. 5 SUP - - - - - - - 17 904 17 824 4. PERFORMANCE AND COM- - - - - - - - 13 912 12 913 PUTER AUDIT SERVICES 5. AUDIT CENTRE OF EX CEL- LENCE - - - - - - - 5 535 4 499 Total for sub programmes - - - - - - - 56 376 53 198 cono ic classifica ion Current payments - - - - - - - 56 329 53 151 Compensation of employe es - - - - - - - 53 344 50 994 Salaries and wages - - - - - - - 46 995 45 277 Social contrib utions - - - - - - - 6 349 5 717 Goods and services - - - - - - - 2 985 2 157 Administrative fees - - - - - - - 1 1 Consultants: Business and - - - - - - - 2 801 2 036 advisory services Paym ent Operating - - - - - - - 183 120 Transfers and subsidies - - - - - - - 36 36 Households - - - - - - - 36 36 Social benefits - - - - - - - 36 36 79

APPROPRIATION STATEMENT for the year ended 31 March 2016 Programme 4: GAUTENG AUDIT SERVICES Adj usted Shifting of Funds 2015/16 2014/15 Virement Final Actual Expenditure Variance Expenditure as o final appropriation Final Actual expenditure R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Payments for capital assets - - - - - - - 11 11 Machinery and eq uipment - - - - - - - 11 11 Other machinery and eq uipment - - - - - - - 11 11 Total - - - - - - - 56 376 53 198 4.1 GAS PROGRAMME SUPPORT 2015/16 2014/15 Adj usted Shifting of Virement Final Actual Variance Expenditure Final Actual Funds Expenditure as o final appropriation expenditure cono ic classifica ion R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 Current payments - - - - - - - 4 584 3 755 Compensation of employe es - - - - - - - 1 600 1 599 Goods and services - - - - - - - 2 984 2 156 Payments for capital assets - - - - - - - 11 11 Machinery and eq uipment - - - - - - - 11 11 Total - - - - - - - 4 595 3 766 80

APPROPRIATION STATEMENT for the year ended 31 March 2016 4.2 2 SUP 2015/16 2014/15 Adj usted Shifting of Funds Virement Final Actual Expenditure Variance Expenditure as o final Final Actual expenditure appropriation cono ic classifica ion R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments - - - - - - - 14 430 14 196 Compensation of employe es - - - - - - - 14 430 14 196 Total - - - - - - - 14 430 14 196 4.3 5 SUP 2015/16 2014/15 Adj usted Shifting of Virement Final Actual Variance Expenditure Final Actual Funds Expenditure as o final appropriation expenditure cono ic classifica ion R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 Current payments - - - - - - - 17 896 17 816 Compensation of employe es - - - - - - - 17 896 17 816 Transfers and subsidies - - - - - - - 8 8 Households - - - - - - - 8 8 Total - - - - - - - 17 904 17 824 81

APPROPRIATION STATEMENT for the year ended 31 March 2016 4.4 PERFORMANCE AND COMPUTER AUDIT SERVICES Adj usted Shifting of Funds 2015/16 2014/15 Virement Final Actual Variance Expenditure Final Expenditure as o final appropriation cono ic classifica ion R 000 R 000 R 000 R 000 R 000 R 000 % R 000 R 000 Current payments - - - - - - - 13 885 12 886 Compensation of employe es - - - - - - - 13 885 12 886 Actual expenditure Transfers and subsidies - - - - - - - 27 27 Households - - - - - - - 27 27 Total - - - - - - - 13 912 12 913 4.5 AUDIT CENTRE OF EX CELLENCE 2015/16 2014/15 Adj usted Shifting of Virement Final Actual Variance Expenditure Final Actual Funds Expenditure as o final appropriation expenditure cono ic classifica ion R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 Current payments - - - - - - - 5 534 4 498 Compensation of employe es - - - - - - - 5 533 4 497 Goods and services - - - - - - - 1 1 Transfers and subsidies - - - - - - - 1 1 Households - - - - - - - 1 1 Total - - - - - - - 5 535 4 499 82

NOT S TO TH APPROPR AT ON STAT M NT for the year ended 31 March 2016 1. 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 1C and 1G 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. xplanations of material variances from Amounts Voted (after Virement): 4.1 Per programme Final Actual Expenditure Variance R 000 Variance as a % of Final Administration 193 023 173 053 19 970 10 ICT Shared Services 902 955 900 977 1 978 0 Business Process Services 82 825 82 023 802 1 Total 1 178 803 1 156 053 22 750 2 er economic classification Final Actual Expenditure Variance Variance as a % of Final R 000 R 000 R 000 % Current payments - - - - Compensation of employees 273 178 271 830 1 348 - Goods and services 529 329 507 927 21 402 4 Transfers and subsidies Higher education institutions 22 800 22 800 - - Households 698 698 - - Payments for capital assets Machinery and equipment 250 431 250 431 - - Intangible assets 102 026 102 026 - - Payments for financial assets 341 341 - - Explanation of variance: The department is in process of applying for a rollover of funds to cater for project commenced and not yet completed by the end of 2015/16 financial year 83

STATEMENT OF FINANCIAL PERFORMANCE for the year ended 31 March 2016 Note 2015/16 2014/15 R 000 R 000 R V NU Annual appropriation 1 1 178 803 1 437 764 Departmental revenue 2 1 807 2 150 TOTA R V NU 1 180 610 1 439 914 P ND TUR Current expenditure Compensation of employees 3 271 830 426 997 Goods and services 4 507 926 517 598 Total current expenditure 779 756 944 595 Transfers and subsidies Transfers and subsidies 6 23 499 2 082 Total transfers and subsidies 23 499 2 082 Expenditure for capital assets Tangible assets 7 250 431 320 893 Intangible assets 7 102 026 124 374 Total expenditure for capital assets 352 457 445 267 Payments for financial assets 5 341 209 TOTA P ND TUR 1 156 053 1 392 153 SURP US FOR TH AR 24 557 47 761 Reconciliation of Net Surplus for the year Voted funds 22 750 45 611 Annual appropriation 22 750 45 611 Departmental revenue 12 1 807 2 150 SURP US FOR TH AR 24 557 47 761 84

STATEMENT OF FINANCIAL POSITION for the year ended 31 March 2016 ASSETS Note 2015/16 2014/15 R 000 R 000 Current assets 29 548 53 346 Cash and cash equivalents 8 28 770 51 540 Prepayments and advances 9 50 50 Receivables 10 728 1 756 TOTAL ASSETS 29 548 53 346 AB T S Current liabilities 29 297 53 073 Voted funds to be surrendered to the Revenue Fund 11 22 750 45 611 Departmental revenue to be surrendered to the Revenue Fund 12 227 846 Payables 13 6 320 6 616 TOTA AB T S 29 297 53 073 NET ASSETS 251 273 Represented by: Recoverable revenue 251 273 TOTAL 251 273 85

STAT M NT OF CHANG S N N T ASS TS for the year ended 31 March 2016 Note 2015/16 2014/15 R 000 R 000 Recoverable revenue Opening Balance 273 261 Transfers: (22) 12 Irrecoverab le amounts written off 5.1 (291) (81) Deb ts recovered (included in departmental receipts) (344) (433) Deb ts raised 613 526 TOTAL 251 273 86

CASH F O STAT M NT for the year ended 31 March 2016 Note 2015/16 2014/15 CASH F O S FROM OP RAT NG ACT V T S R 000 R 000 Receipts 1 180 610 1 439 914 Annual appropriated funds received 1.1 1 178 803 1 437 764 Departmental revenue received 2.1 & 2.3 1 796 2 135 Interest received 2.2 11 15 Net (increase)/decrease in working capital 732 1 462 Surrendered to Revenue Fund (48 037) (104 035) Current payments (779 756) (944 595) Payments for financial assets (341) (209) Transfers and subsidies paid (23 499) (2 082) Net cash ow available from operating activities 14 329 709 390 455 CASH F O S FROM NV ST NG ACT V T S Payments for capital assets 7 (352 457) (445 267) Net cash ows from investing activities (352 457) (445 267) CASH F O S FROM F NANC NG ACT V T S Increase/(decrease) in net assets (22) - Net cash ows from financing activities (22) - Decrease in cash and cash equivalents (22 770) (54 812) Cash and cash equivalents at beginning of period 51 540 106 352 Cash and cash equivalents at end of period 8 28 770 51 540 87

ACCOUNT NG PO C S for the year ended 31 March 2016 ACCOUNT NG PO C S for the year ended 31 March 2016 ummar of significant accounting policies he financial statements have been prepared in accordance ith the follo ing policies, hich have been applied consistentl in all material aspects, unless other ise indicated anagement has concluded that the financial statements present fairl the department s primar and secondar information he historical cost convention has been used, e cept here other ise indicated anagement has used assessments and estimates in preparing the annual financial statements hese are based on the best information available at the time of preparation here appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the financial statements and to compl ith the statutor re uirements of the ublic inance anagement Act A, Act of as amended b Act of, and the reasur Regulations issued in terms of the A and the annual ivision 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 spot 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. 88

ACCOUNT NG PO C S for the year ended 31 March 2016 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 ith the transaction ill o to the department and the amount of revenue can be measured reliabl he 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 8.1.1 Salaries and wages Salaries and wages are recognised in the statement of financial performance on the date of payment. 8.1.2 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 or in the case of transfers and subsidies when they are due and payable. Accrued expenditure payable is measured at cost. 8.4 Leases 8.4.1 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. 8.4.2 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 pa ments made, including an pa ments made to ac uire o nership at the end of the lease term, e cluding interest 89

ACCOUNT NG PO C S for the year ended 31 March 2016 9 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 as a current liability. 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. 10 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. Indicate when prepayments are expensed and under what circumstances. 11 Financial assets 11.1 Financial assets (not covered elsewhere) A financial asset is recognised initially at its cost plus transaction costs that are directly attributable to the acquisition or issue of the financial. At the reporting date, a department shall measure its financial assets at cost, less amounts already settled or written-off, except for recognised loans and receivables, which are measured at cost plus accrued interest, where interest is charged, less amounts already settled or written-off. 11.2 mpairment 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. 12 Payables Loans and payables are recognised in the statement of financial position at cost. 13 Capital Assets 13.1 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 reliably, 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. 90

ACCOUNT NG PO C S for the year ended 31 March 2016 13.2 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 reliably, 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. 13.3 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 reliably, 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. 14 Provisions and Contingents 14.1 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. 14.2 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. 14.3 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. 14.4 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. 91

ACCOUNT NG PO C S for the year ended 31 March 2016 15 Unauthorised expenditure Unauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either: approved b arliament or the rovincial egislature ith funding and the related funds are received or approved b arliament or the rovincial egislature ithout funding and is ritten off against the appropriation in the statement of financial performance or transferred to receivables for recover nauthorised e penditure is measured at the amount of the confirmed unauthorised e penditure 16 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. 17 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 therefor 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. 18 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 periodspecific 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. 19 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. 20 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. 21 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 within the Minister s portfolio are recorded in the notes to the financial statements when the transaction is not at arm s length. Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the department. The number of individuals and their full compensation is recorded in the notes to the financial statements. 92

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 1. Annual 1.1 Annual Included are funds appropriated in terms of the Act (and the Adjustments Act) for Provincial Departments: 2015/16 2014/15 Final Actual Funds Received Funds not req uested/not received Final received R 000 R 000 R 000 R 000 R 000 Administration 193 023 193 023-223 806 223 806 ICT Shared Services 902 955 902 955-998 382 998 382 Business Process Services 82 825 82 825-159 200 159 200 Gauteng Audit Services - - - 56 376 56 376 Total 1 178 803 1 178 803-1 437 764 1 437 764 Note 2015/16 2014/15 R 000 R 000 2. Departmental revenue Sales of goods and services other than capital assets 2.1 572 850 Interest, dividends and rent on land 2.2 11 15 Transactions in financial assets and liabilities 2.3 1 224 1 285 Departmental revenue collected 1 807 2 150 93

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 N o t e 2015/16 2014/15 R 000 R 000 2.1 Sales of goods and services other than capital assets b y b y Sales of goods and services produced the department 572 843 Sales market estab lishment 572 843 Sales of scrap, waste and other used current goods - 7 Total 572 850 2.2 Interest, dividends and rent on land Interest 11 15 Total 11 15 2.3 Transactions in financial assets and liabilities Other Receipts including Recoverab le Revenue 1 224 1 285 Total 1 224 1 285 3. Compensation of employees 3.1 Salaries and Wages Basic 179 617 296 013 Performance award 5 006 6 132 Service Based 253 235 Compensative/circumstantial 4 745 3 358 Periodic payments 9 524 7 837 Other non-pensionable allowances 37 238 58 729 Total 236 383 372 304 94

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 N o t e 2015/16 2014/15 R 000 R 000 3.2 Social contributions Employer contributions Pension 22 901 38 364 Medical 12 499 16 258 UIF 2 - Bargaining council 45 71 Total 35 447 54 693 Total compensation of employees 271 830 426 997 Average numb er of employe es 672 1 109 95

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 N o t e 2015/16 2014/15 R 000 R 000 4. Goods and services Administrative fees 1 421 493 Advertising 857 920 Minor assets 4.1 377 1 817 Bursaries (employees) 1 054 1 733 Catering 98 52 Communication 4 614 7 176 Computer services 4.2 420 927 420 461 Consultants: Business and advisory services 7 467 10 783 Legal services 1 464 1 380 Contractors 4 506 7 996 Audit cost external 4.3 3 673 5 537 Fleet services 398 428 Consumables 4.4 2 733 1 803 Operating leases 28 006 28 843 Property payments 4.5 19 015 19 978 Rental and hiring 5 - Travel and subsistence 4.6 967 1 655 Venues and facilities 5 973 1 103 Training and development 1 637 3 155 Other operating expenditure 4.7 2 734 2 285 Total 507 926 517 598 96

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 Note 2015/16 2014/15 R 000 R 000 4.1 Minor Assets Tangible assets 377 1 808 Machinery and equipment 377 1 808 Intangible assets - 9 Software - 9 Total 377 1 817 4.2 Computer Services SITA computer services 28 624 30 150 External computer service providers 392 303 390 311 Total 420 927 420 461 97

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 N o t e 2015/16 2014/15 R 000 R 000 4.3 Audit cost External Regularity audits 2 499 1 446 Performance audits 273 1 818 Computer audits 901 2 273 Total 3 673 5 537 4.4 Consumables Consumable supplies 985 125 Uniform and clothing 62 - Household supplies 136 11 Building material and supplies 84 25 Communication accessories 2 - IT consumables 701 63 Other consumables - 26 Stationery, printing and office supplies 1 748 1 678 Total 2 733 1 803 98

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 N o t e 2015/16 2014/15 R 000 R 000 4.5 Property payments Municipal services 13 791 17 979 Property management fees 20 - Property maintenance and repairs 4 390 1 510 Other 814 489 Total 19 015 19 978 4.6 Travel and subsistence Local 536 342 Foreign 431 1 313 Total 967 1 655 4.7 Other operating expenditure Professional bodies, membership and subscription fees 46 151 Other* 2 688 2 134 Total 2 734 2 285 *Other includes expenditure on courier and delivery services, printing, publication and storage files. 99

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 N o t e 2015/16 2014/15 R 000 R 000 5. Payments for financial assets Debts written off 5.1 341 209 Total 341 209 5.1 Debts written off Nature of debts written off Irrecoverable debts 291 81 Bad debt written off 50 128 otal debt ritten off 341 6. Transfers and subsidies Departmental agencies and accounts Annex 1B - 1 589 Higher education institutions Annex 1C 22 800 - Households Annex 1G 699 493 Total 23 499 2 082 7. Expenditure for capital assets angible assets Machinery and equipment 27 250 431 320 893 ntangible assets 124 374 Software 28 102 026 124 374 Total 352 457 445 267 100

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 7.1 Analysis of funds utilised to acquire capital assets 2015/16 Voted funds Aid assistance Total R 000 R 000 R 000 Tangible assets 250 431-250 431 Machinery and equipment 250 431-250 431 Intangible assets 102 026-102 026 Software 102 026-102 026 Total 352 457-352 457 7.2 Analysis of funds utilised to acquire capital assets 2014/15 Voted funds Aid assistance Total R 000 R 000 R 000 angible assets - Machinery and equipment 320 893-320 893 ntangible assets - 124 374 Software 124 374-124 374 Total 445 267-445 267 101

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 Note 2015/16 2014/15 R 000 R 000 7.3 Finance lease expenditure included in Expenditure for capital assets Tangible assets Machinery and equipment 855 1 587 Total 855 1 587 8. Cash and cash equivalents Consolidated Paymaster General Account 29 324 51 515 Disbursements* (579) - Cash on hand 25 25 Total 28 770 51 540 *Payments for expenditure incurred, but not yet cleared from the bank account at year end 9. Prepayments and advances Prepayments (Not expensed) 9.1 50 50 Total 50 50 9.1 Prepayments (Not expensed) Goods and services 50 50 Total 50 50 102

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 10. Receivables 2015/16 2014/15 Current Non-current Total Current Non-current Total R 000 R 000 R 000 R 000 R 000 R 000 Note Claims recoverable 10,1 330-330 1 232-1 232 Staff debt 10.2 397-397 499-499 Other debtors 10.3 1-1 25-25 Total 728-728 1 756-1 756 10.1 Claims recoverable 10 and Annex 4 Note 2015/16 2014/15 R 000 R 000 National departments - 61 Provincial departments 330 1 145 Public entities - 26 Total 330 1 232 10.2 Staff debt Bursary and salary related 397 499 Total 397 499 *Staff debts schedule includes the negative balance of R59 203.02, which will be cleared in 2016/17 financial year. 103

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 10.3 Other debtors N o t e 2015/16 2014/15 R 000 R 000 Various clearing accounts 1 25 Total 1 25 11. Voted funds to be surrendered to the Revenue Fund Opening balance 45 611 102 383 Transfer from statement of financial performance 22 750 45 611 Paid during the year (45 611) (102 383) Closing balance 22 750 45 611 12. Departmental revenue to be surrendered to the Revenue Fund Opening balance 846 348 Transfer from Statement of Financial Performance 1 807 2 150 Paid during the year (2 426) (1 652) Closing balance 227 846 13. Payables current Advances received 13.1 6 152 6 429 Clearing accounts 13.2 168 187 Total 6 320 6 616 13.1 Advances received Provincial departments Annex 8B 6 152 6 429 Total 6 152 6 429 104

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 13.2 Clearing accounts N o t e 2015/16 2014/15 R 000 R 000 escription Salary related 168 187 Total 168 187 Prior year other payables have been reallocated to recoverable revenue in the statement of changes in net assets as required in the standard chart of accounts. 14. Net cash ow available from operating activities Net surplus/(deficit) as per Statement of Financial Performance 24 557 47 761 Add back non cash/cash movements not deemed operating activities 305 152 342 694 (Increase)/decrease in receivables current 1 028 4 757 (Increase)/decrease in prepayments and advances - 91 Increase/(decrease) in payables current (296) (3 386) Expenditure on capital assets 352 457 445 267 Surrenders to Revenue Fund (48 037) (104 035) Net cash ow generated by operating activities 329 709 390 455 15. Reconciliation of cash and cash equivalents for cash ow purposes Consolidated Paymaster General account 29 324 51 515 Disbursements (579) - Cash on hand 25 25 Total 28 770 51 540 105

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 16.Contingent liabilities and contingent assets 16.1 Contingent liabilities Liable to Nature Claims against the department Intergovernmental payables (unconfirmed balances) N o t e 2015/16 2014/15 R 000 R 000 Annex 3B 30 851 30 851 Annex 5-15 Total 30 851 30 866 16.2 Contingent assets Nature of contingent asset Civil recovery for supplier account overpayment 605 605 Criminal case under investigation 42 944 - Total 43 549 605 17. Commitments Current expenditure Approved and contracted 1 101 966 1 019 810 Approved but not yet contracted - 7 488 Sub Total 1 101 966 1 027 298 Capital expenditure Approved and contracted - 10 000 Total Commitments 1 101 966 1 037 298 Age Analysis: Not later than 1 year 527 866 Later than 1 and not later than 3 years 574 100 Total 1 101 966 106

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 Note 2015/16 2014/15 R 000 R 000 18. Accruals and payables not recognised 18. 1 Accruals isted by economic classification a s a s Total Total R 000 R 000 R 000 R 000 Goods and services 18 928-18 928 15 730 Total 18 928-18 928 15 730 Listed by programme level Administration 5 785 3 644 Information and communication technology 13 143 12 018 Business Process Services - 68 Total 18 928 15 730 18.2 Payables not recognised isted by economic classification 30 Days 30+ Days Total Total R 000 R 000 R 000 R 000 Goods and services 1 636-1 636 - Total 1 636-1 636 - Listed by programme level Administration 936 - ICT Shared Services 700 - Total 1 636 - ncluded in the above totals are the following: Confirmed balances with other departments Annex 5 74 400 Confirmed balances with other government entities Annex 5 523 341 Total 597 741 107

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 Note 2015/16 2014/15 R 000 R 000 19. Employee benefits Leave entitlement* 7 290 10 647 Service bonus (Thirteenth cheque) 7 258 11 114 Performance awards 7 560 5 153 Capped leave commitments 4 832 9 503 Other** 241 101 Total 27 181 36 518 *Included in leave entitlement is a negative leave balance of R594 171.62 which is as a results of resolution 7 of 2000, which allows employees to accrue leave days on the 1st of January irrespective of employment date **Other employee s benefits consist of long service awards amount payable to eligible employees in the ensuing financial year. 20. Lease commitments 20.1 Operating leases expenditure 2015/16 Specialised military equipment Land Buildings and other fixed Machinery and equipment Total structures R 000 R 000 R 000 R 000 R 000 Not later than 1 year - - 33 664 790 34 454 Later than 1 year and not later than 5 years Total lease commitments - - 68 602 1 000 69 602 - - 102 266 1 790 104 056 2014/15 Specialised military equipment Land Buildings and other Machinery and equipment Total fixed structures R 000 R 000 R 000 R 000 R 000 Not later than 1 year - - 5 451 6 7 3 6 124 Later than 1 year and not later than 5 years - - 2 2 8 1 5-22 815 Later than five years - - 601-601 Total lease commitments - - 28 867 673 29 540 108

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 20.2 Finance leases expenditure** 2015/16 Specialised military equipment Land Buildings and other fixed structures Machinery and equipment Total R 000 R 000 R 000 R 000 R 000 Not later than 1 year - - - 542 542 Total lease commitments - - - 542 542 2014/15 Specialised military equipment Land Buildings and other fixed structures Machinery and equipment Total R 000 R 000 R 000 R 000 R 000 Not later than 1 year - - - 1 898 1 898 Later than 1 year and not later than 5 years - - - 1 087 1 087 Total lease commitments - - - 2 985 2 985 ** finance lease is in respect of leased vehicles from gfleet Management, the vehicles remains with the Department until is returned to Gfleet. 109

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 Note 2015/16 2014/15 R 000 R 000 21. Accrued departmental revenue Sales of goods and services other than capital assets 21 28 Total 21 28 21.1 Analysis of accrued departmental revenue Opening balance 28 38 Less: amounts received (28) (38) Add: amounts recognised 21 28 Closing balance 21 28 22. Irregular expenditure 22.1 Reconciliation of irregular expenditure Opening balance 60 237 12 238 Add: Irregular expenditure relating to prior year 46 754 - Add: Irregular expenditure relating to current year 39 721 49 037 Less: Prior year amounts condoned (60 182) (1 038) Less: Current year amounts condoned (46 754) - Closing balance 39 776 60 237 Analysis of awaiting condonation per age classification Current year 39 721 49 037 Prior years 55 11 200 Total 39 776 60 237 In addition to the disclosed expenditure, the department identified irregularities in procuring other services, which will be recorded in the subsequent financial years when expenditure is incurred. 110

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 Note 2015/16 2014/15 R 000 R 000 22.2 Details of irregular expenditure current year Incident Disciplinary steps taken/criminal proceedings Extension of contract previously confirmed as irregular expenditure Investigation underway 11 145 Non-compliance to Procurement processes Investigation underway 28 576 Total 39 721 22.3 Details of irregular expenditure condoned Incident ondoned b Non-compliance to procurement processes National Treasury 106 936 Total 106 936 23. Fruitless and wasteful expenditure 23.1 Reconciliation of fruitless and wasteful expenditure Opening balance 5 - Fruitless and wasteful expenditure relating to current year - 163 Less: Amounts resolved - (158) Closing balance 5 5 23.2 Analysis of awaiting resolution per economic classification Current 5 5 Total 5 5 23.3 Prior period error Nature of prior period error Relating to 2014/15 (158) Fruitless and wasteful (158) Total prior period errors 111

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 Note 2015/16 2014/15 R 000 R 000 24. Related party transactions Gauteng Department of e-government is related to all Gauteng provincial government departments and entities by virtue of being under the control of Gauteng Premier and Gauteng Legislature. 25. Key management personnel No. of ndividuals fficials Level 15 to 16 5 4 020 12 271 Level 14 13 8 213 8 734 Total 12 233 21 005 26. Provisions Bad Debts 403 349 Total 403 349 26.1 Reconciliation of movement in provisions 2015/16 Bad Debts Provision 2 Provision 3 Total provisions R 000 R 000 R 000 R 000 Opening balance 349 - - 349 Increase in provision 54 - - 54 Closing balance 403 - - 403 112

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 Reconciliation of movement in provisions 2014/15 Bad Debts Provision 2 Provision 3 Total provisions R 000 R 000 R 000 R 000 Opening balance - - - - Increase in provision 558 - - 558 Settlement of provision (209) - - (209) Closing balance 349 - - 349 27. Movable Tangible Capital Assets MOV M NT N MOVAB TANG B CAP TA ASS TS P R ASS T R G ST R FOR TH AR ND D 31 MARCH 2016 Opening balance Value adjustments Additions Disposals Closing Balance R 000 R 000 R 000 R 000 R 000 MACH N R AND U PM NT 138 482-12 566 13 015 138 033 Transport assets - - - - - Computer equipment 112 890-2 785 5 971 109 704 Furniture and office equipment 22 271-8 378 6 774 23 875 Other machinery and equipment 3 321-1 403 270 4 454 TOTA MOVAB TANG B CAP TA ASS TS 138 482-12 566 13 015 138 033 113

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 Movable Tangible Capital Assets under investigation Number Value R 000 Included in the above total of the movable tangible capital assets per the asset register are assets that are under investigation: Machinery and equipment 12 175 Investigation report detailing the circumstances under which the assets are either missing or damaged is yet to be finalised by the Security Services unit within the department. 27.1 Additions Cash* Non-cash** (Capital ork in Progress current costs and finance lease payments) Received current, not paid (Paid current year, received prior year) R 000 R 000 R 000 R 000 R 000 MACH N R AND U PM NT 250 430 - (237 864) - 12 566 Transport assets 855 - (855) - - Computer equipment 239 794 - (237 009) - 2 785 Furniture and office equipment 8 378 - - - 8 378 Other machinery and equipment 1 403 - - - 1 403 Total TOTA ADD T ONS TO MOVAB TANG B CAPITALASSETS 250 430 - (237 864) - 12 566 114

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 27.2 Disposals D SPOSA S OF MOVAB TANG B CAP TA ASS TS P R ASS T R G ST R FOR TH AR ND D 31 MARCH 2016 Sold for cash Non-cash disposal Total disposals Cash Received Actual R 000 R 000 R 000 R 000 MACH N R AND U PM NT 13 015 13 015 - Transport assets - - - - Computer equipment - 5 971 5 971 - Furniture and office equipment - 6 774 6 774 - Other machinery and equipment - 270 270 - TOTA D SPOSA OF MOVAB TANG B CAP TA ASS TS - 13 015 13 015-27. 3 Movement for 2014/15 MOV M NT N TANG B CAP TA ASS TS P R ASS T R G ST R FOR TH AR ND D 31 MARCH 2015 Opening balance Prior period error Additions Disposals Closing Balance R 000 R 000 R 000 R 000 R 000 MACH N R AND U PM NT 90 028 2 291 50 328 4 165 138 482 Transport assets Computer equipment 65 034 1 608 49 368 3 120 112 890 Furniture and office equipment 22 169 624 486 1 008 22 271 Other machinery and equipment 2 825 59 474 37 3 321 TOTA MOVAB TANG B CAP TA ASS TS 90 028 2 291 50 328 4 165 138 482 115

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 27.3.1 Prior period error Note 2014/15 27.3 R 000 Nature of prior period error Relating to 2014/15 affecting the opening balance] 2 291 2 291 Total prior period errors `2 291 27.4 Minor assets MOV M NT N M NOR ASS TS P R TH ASS T R G ST R FOR TH AR ND D AS AT 31 MARCH 2016 Specialised military assets Intangible assets Heritage assets Machinery and equipment Biological assets Total R 000 R 000 R 000 R 000 R 000 R 000 Opening balance - 48-19 391-19 439 Value adjustments - - - - - - Additions - - - 376-376 Disposals - - - 3 070-3 070 TOTAL MINOR ASSETS - 48-16 697-16 745 Specialised military assets Intangible assets Heritage assets Machinery and equipment Biological assets Total umber of R minor assets - - - - - - Number of minor assets at cost - 14-10 129-10 143 TOTA NUMB R OF M NOR ASS TS 14 10 129 10 143 116

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 Minor Capital Assets under investigation Number Value R 000 Included in the above total of the minor capital assets per the asset register are assets that are under investigation: Machinery and equipment 8 7 MOV M NT N M NOR ASS TS P R TH ASS T R G ST R FOR TH AR ND D AS AT 31 MARCH 2015 Specialised military assets Intangible assets Heritage assets Machinery and equipment Biological assets Total R 000 R 000 R 000 R 000 R 000 R 000 Opening balance - 39-18 161-18 200 Prior period error - - - 968-968 Additions - 9-1 808-1 817 Disposals - - - 1 546-1 546 TOTAL MINOR ASSETS - 48-19 391-19 439 Specialised military assets Intangible assets Heritage assets Machinery and equipment Biological assets Total Number of minor assets at cost - 14-11 284-11 298 TOTA NUMB R OF M NOR ASS TS - 14 11 284 11 298 27.4.1 Prior period error Note 2014/15 27.4 R 000 Nature of prior period error Relating to 2014/15 affecting the opening balance 968 968 Total prior period errors 968 117

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 27.5 S42 Movable Capital Assets MAJOR ASS TS SUBJ CT D TO TRANSF R N T RMS OF S42 OF TH PFMA - 31 MARCH 31 MARCH 2016 Specialised military assets Intangible assets Heritage assets Machinery and equipment Biological assets Total No. of Assets - 6-740 - 746 Value of the assets (R 000) - 112-13 015-13 127 M NOR ASS TS SUBJ CT D TO TRANSF R N T RMS OF S42 OF TH PFMA - 31 MARCH 2016 Specialised military assets Intangible assets Heritage assets Machinery and equipment Biological assets Total No. of Assets - - - 972-972 Value of the assets (R 000) - - - 3 070-3 070 28. ntangible Capital Assets MOV M NT N NTANG B CAP TA ASS TS P R ASS T R G ST R FOR TH AR ND D 31 MARCH 2016 Opening balance Value adjustments Additions Disposals Closing Balance R 000 R 000 R 000 R 000 R 000 SOFTWARE 232 572-102 026 112 334 486 TOTA NTANG B CAP TA ASS TS 232 572-102 026 112 334 486 118

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 28.1 Additions ADD T ONS TO NTANG B CAP TA ASS TS P R ASS T R G ST R FOR TH AR ND D 31 MARCH 2016 Cash Non-Cash (Develop-ment work in progress current costs) Received current year, not paid (Paid current year, received prior year) R 000 R 000 R 000 R 000 R 000 Total SOFTWARE 102 026 - - - 102 026 TOTA ADD T ONS TO NTANG B CAP TA ASS TS 102 026 - - - 102 026 28.2 Disposals D SPOSA S OF NTANG B CAP TA ASS TS P R ASS T R G ST R FOR TH AR ND D 31 MARCH 2016 Sold for cash Non-cash disposal Total disposals Cash Received Actual R 000 R 000 R 000 R 000 SOFTWARE - 112 112 - TOTA D SPOSA S OF NTANG B CAP TA ASS TS - 112 112-28.3 Movement for 2014/15 MOV M NT N NTANG B CAP TA ASS TS P R ASS T R G ST R FOR TH AR ND D 31 MARCH 2015 Opening balance Prior period error Additions Disposals Closing Balance R 000 R 000 R 000 R 000 R 000 SOFTWARE 232 225-347 - 232 572 TOTA NTANG B CAP TA ASS TS 232 225-347 - 232 572 119

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 29. Prior period errors 29.1 Correction of prior period errors 2014/15 R 000 Assets Recoverable Revenue: Debts receivable income 266 Debts receivable interest 7 Net effect 273 Prior year payables recoverable income and interest moved from statement of financial position to Statement of changes in net assets. iabilities Other payables: Debts receivable income Debts receivable interest Net effect 2014/15 R 000 (266) (7) (273) 120

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 30. Transfer of functions 30.1 Statement of Financial Position Bal per dept 2014/15 AFS before transfer Functions Health (transferred) / received Functions Treasury (transferred) / received Functions Premier (transferred) / received 2015/16 Bal after transfer 2014/15 2015/16 2015/16 2015/16 2015/16 R 000 R 000 R 000 R 000 R 000 ASSETS 53 346 - (82) - 53 264 Current Assets Cash and cash equivalents 51 540 - - - 51 540 Prepayments and advances 50 - - - 50 Receivables 1 756 - (82) - 1 674 TOTAL ASSETS 53 346 (82) 53 264 AB T S Current Liabilities 53 073 53 073 Voted funds to be surrendered to the Revenue Fund 45 611 - - - 45 611 Departmental revenue and NRF Receipts to be surrendered to the 846 - - - 846 Revenue Fund Payables 6 616 - - - 6 616 TOTA AB T S 53 073 - - - 53 073 NET ASSETS 273 - (82) - 191 121

NOT S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 30.2 Notes Bal per dept AFS before transfer Health Treasury Premier Bal after transfer 2014/15 2015/16 2015/16 2015/16 2015/16 R 000 R 000 R 000 R 000 R 000 Contingent liabilities 30 866 - - - 30 866 Contingent assets 605 - - - 605 Commitments 1 037 298 - - - 1 037 298 Accruals 15 730 - - - 15 730 Employee benefits 36 518 - - - 36 518 Lease commitments Operating lease 29 540 - - - 29 540 Lease commitments Finance lease 2 985 - (961) (551) 1 473 Accrued departmental revenue 28 - - - 28 Irregular expenditure 60 237 - - - 60 237 Fruitless and wasteful expenditure 5 - - - 5 Provisions 349 - - 349 Movable tangible capital assets 136 191 (221) (8 478) (5 266) 122 226 Intangible capital assets 232 572 - (79) (33) 232 460 122

UNAUD T D ANN UR S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 ANN UR 1B STAT M NT OF TRANSF RS TO D PARTM NTA AG NC S AND ACCOUNTS D PARTM NT/ AG NC / ACCOUNT TRANSFER ALLOCATION TRANSFER 2014/15 Adjusted Appro-priation Roll Overs Adjust-ments Total Available Actual Transfer % of Available fundstransferred Appro-priation Act R 000 R 000 R 000 R 000 R 000 % R 000 Skills Development Levy - - - - - - 1 589 Total - - - - - - 1 589 ANN UR 1C STAT M NT OF TRANSF RS TO H GH R DUCAT ON NST TUT ONS NAM OF H GH R DUCAT ON NST TUT ON Adjusted TRANSFER ALLOCATION TRANSFER 2014/15 Roll Overs Total Available Actual Transfer Amount not transferred % of Available funds Transferred R 000 R 000 R 000 R 000 R 000 R 000 % R 000 University of the Witwatersrand - - 22 800 22 800 22 800-0 - TOTAL - - 22 800 22 800 22 800-0 - Adjustments Act 123

UNAUD T D ANN UR S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 ANN UR 1G STAT M NT OF TRANSF RS TO HOUS HO DS HOUS HO DS Transfers TRANSFER ALLOCATION P ND TUR 2014/15 Adjusted % of Available Actual funds Appro-priation Appro-priation Act Roll Overs Adjust-ments Total Available Transfer Transferred Act R 000 R 000 R 000 R 000 R 000 % R 000 Injury on duty 28 - - 28 28 100 47 Leave gratuity 498-173 671 671 100 446 TOTAL 526-173 699 699-493 ANN UR 1H STAT M NT OF G FTS, DONAT ONS AND SPONSORSH PS R C V D A R A A A R, A R R 2015/16 2014/15 R 000 R 000 Received in ind Huawei Huawei 2x Ascend P7 smart phone - 13 TOTAL - 13 124

UNAUD T D ANN UR S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 ANN UR 3B STAT M NT OF CONT NG NT AB T S AS AT 31 MARCH 2016 Nature of Liability Opening Balance Liabilities incurred Liabilities paid/cancelled/ Liabilities recoverable Closing Balance 1 April 2015 during the year reduced during the year (Provide details 31 March 2016 hereunder) R 000 R 000 R 000 R 000 R 000 Civil action against the department for loss of profit 22 012 - - - 22 012 Civil claim for malicious prosecution & defamation against the state 7 323 - - - 7 323 Civil claim for goods sold and delivered for various departments 1 516 - - - 1 516 TOTAL 30 851 - - - 30 851 125

UNAUD T D ANN UR S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 ANN UR 4 C A MS R COV RAB Confirmed balance Unconfirmed balance Cash in transit at year end 2015/16 * outstanding outstanding Total Government Entity Receipt date up to six (6) 31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015 working days after year end Amount R 000 R 000 R 000 R 000 R 000 R 000 R 000 National Departments: Transport - 24 - - - 24 - - Rural Development - - - 37-37 - - Gauteng Provincial Departments: Health - 721 - - - 721 - - Treasury 56 424 - - 56 424 - - Education 6 - - - 6 - - - Office of the Premier 268 - - - 268 - - - Sub Total 330 1 169-37 330 1 206 - Other Government Entities GP: G Fleet 26 26 Sub Total - 26 - - - 26 - - TOTAL 330 1 195-37 330 1 232 - - 126

UNAUD T D ANN UR S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 ANN UR 5 NT R-GOV RNM NT PA AB S Confirmed balance outstanding Unconfirmed balance outstanding TOTAL Cash in transit at year end 2015/16 * GOV RNM NT NT T 31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015 Payment date up to six (6) working Amount days before year end R 000 R 000 R 000 R 000 R 000 R 000 R 000 DEPARTMENTS s Current National Departments: Justice - 101 - - - 101 - DPSA 74 31 - - 74 31 - Labour - - - 15-15 - Gauteng Provincial Departments: Economic Development - 106 - - - 106 - Government Printing Works - 46 - - - 46 - Treasury - 116 - - - 116 - Subtotal 74 400 - - - 400 - TOTAL R R Current Gauteng Infrastructure fund Agency 334 144 - - 334 144 - G Fleet 115 197 - - 115 197 - Subtotal 523 341 - - 449 341 - TOTAL 523 741 - - 449 741-127

UNAUD T D ANN UR S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 ANN UR 7 MOV M NT N CAP TA OR N PROGR SS MOV M NT N CAP TA OR N PROGR SS FOR TH AR ND D 31 MARCH 2016 Opening balance Current ear Capital P Completed Assets Closing balance R 000 R 000 R 000 R 000 MACH N R AND U PM NT 269 263 237 864 (270 565) 236 562 Transport assets 1 587 855 (1 587) 855 Computer equipment 266 630 237 009 (267 932) 235 707 Furniture and office equipment 1 046 - (1 046) - SOFT AR Software 125 329 - (125 329) - TOTAL 394 592 237 864 (395 894) 236 562 128

UNAUD T D ANN UR S TO TH ANNUA F NANC A STAT M NTS for the year ended 31 March 2016 ANN UR 8B NT R- NT T ADVANC S R C V D (note 13) Confirmed balance outstanding Unconfirmed balance outstanding TOTAL NT T 31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015 R 000 R 000 R 000 R 000 R 000 R 000 NATIONAL DEPARTMENTS Current Office of the Premier Hotline - 5 528 - - - 5 528 Microsoft License Office of the Premier - 901 - - - 901 Social Development 4 840 - - - 4 840 - Treasury 1 312 - - - 1 312 - TOTAL 6 152 6 429 - - 6 152 6 429 Current 6 152 6 429 - - 6 152 6 429 129

Imbumba House, 75 Fox Street, Johannesburg, South Africa, 2001 Tel. No: +2711 689 6000 Fax: +2711 355 2112 Private Bag X 112, Marshalltown, South Africa, 2107 Website: www.egov.gpg.gov.za or www.gautengonline.gov.za E-mail: egovcommunications@gauteng.gov.za PR215/2016 ISBN: 978-0-621-44707-1