Finance Annual Report 2007-2008 - Gauteng Online

GAUTENG TREASURY ANNUAL REPORT • Annual Financial Statementsment has pursued its mandate, vision and mission in the Gauteng Province.The total adjusted budget of the department increased from R44,5million in 2006/07 to R119.5 million in 2007/08 as shown in the tablebelow, indicating a higher level of responsibility that the province placedon the department. The department has utilised R111.9 million (93.6%)of this budget, thus effectively acquitting itself of its expected responsibilitiestowards the province and its people.2007/8 2006/7 % ChangeFinal Appropriation R119.5m R44.5m 267%Spending for the year R111.9 R42.1m 265.8%Under-spending R7.6 (6.4%) R2.4 (5.5%) 0.9%Vacancy rate 26 % 48.% (22%)Under spending of R7,634 million is primarily attributed to delayed projectsrelating to asset valuation in the Province. This under spendingtranslates to 6.4% of the Adjusted Budget.2. Services rendered by the department2.1 Under the powers vested in the MEC for Finance and EconomicAffairs as Political Head of Provincial Treasury, he is mainly responsible forthe execution of the functions and powers as prescribed in Chapter 3 ofthe PFMA. However, other legislative provisions in different national andprovincial acts and laws, including the MFMA add further responsibilities.Gauteng Treasury has both an advisory and facilitator role in the GautengProvincial Government that encompasses managing and overseeing theimplementation of Public Private Partnerships in terms of National Treasuryregulations. In addition, it also ensures sound financial managementin both provincial and local spheres of government.2.2 Free ServicesAll services rendered by Gauteng Treasury to other departments aremainly in terms of the PFMA or to municipalities in terms of the MFMAas alluded to in paragraph 2.1 above. No free services were rendered byGauteng Treasury.3. Capacity constraintsIn the 2007/2008 financial year, building capacity within treasury was akey priority. Through recruitment and selection efforts the departmentwas able to reduce the vacancy rate from 48% to 27%. The approvedstaff establishment on 31 March 2008 consisted of 167 posts (excludingthree posts additional to the staff establishment) with 46 vacancies,which is a significant reduction from the 78 vacant posts on 1 April 2007.One of the constraints that hindered the department in reducing thevacancy rate to the 10% target was the lack of available office space tosafely accommodate all employees.Although the department has managed to significantly decrease thevacancy rate during the period under review, it is believed that otherinterventions and programmes will further contribute in ensuring thatGauteng Treasury has sufficient capacity to deliver on its mandate. Onesuch intervention is the development and implementation of a vacancymanagement strategy in the 2008/09 financial year. A revised organisationalstructure is currently being finalised for implementation. The strategyentails a plan for each and every vacancy that exists on the structurein terms of when the department intends filling it and the process involvedin terms of recruitment (e.g. medium of recruitment). The HR unitfurther developed a recruitment framework in the 2007/08 financial yearthat informs the processes and timeframes for recruitment and selectionwhich also includes a service level agreement with business units in termsof deliverables.4. Utilisation of donor fundsGauteng Treasury did not receive any donor funding.5. Organisations to whom transfer payments have been madeTransfers payments were made to the Gauteng Fund Project Office forstarting up the Gauteng Infrastructure Fund and to Nokeng Tsa TaemaneLocal municipality to assist in building institutional capacity in the BudgetOffice of the municipality.6. Corporate governance arrangementsA consolidated risk profile that was completed in January 2008 is cur-45