GSSC Treasury v7.indd - Gauteng Provincial Treasury

Annual Report2009/10Building a results driven environment,seeing the plans through

The 2009/2010 financial year as we all know, was a unique year ina number of respects. Firstly, it was the electoral year during whichour mandate was reviewed and renewed by the electorate. The newgovernment emerging out of this process took a decision to mergethe Gauteng Treasury with the Gauteng Shared Service Centre toform the Department of Finance and embarked on a process toestablish the Gauteng Funding Agency. Further, it was also during theyear under review that our country and the world at large began toemerge out of the global recession.The recession has afforded us the opportunity to review our economicmodel; most importantly it has brought to scrutiny the market as thedominant player in the world economic affairs. In this regard, thereis an emerging consensus around the globe that the market cannotbe the sole player in the economy and most importantly should besubjected to government intervention and supervision. The post-coldwar victors, the liberal ideologues, have championed this view.Francis Fukuyama, who became famous for his thesis that with theAmerican model of liberal democracy and free market-capitalismwe have reached the “End of History”, has also revised his views,commenting that the “American economy has gone off the rails,threatening to drag the rest of the world down with it.“ Worse still,he says the culprit is the American model itself. “Under the mantraof less government, Washington failed to adequately regulate thefinancial sector and allowed it to do tremendous harm to the rest ofsociety”. (The Fall of America, Inc, Newsweek, October 4, 2008).As we move forward with Gauteng Treasury as a division of theGauteng Department of Finance, I invite all our stakeholders fromgovernment departments, municipalities and industry bodies to workclosely with us to improve the lives of our people for the better.There is no doubt that such a mutual relationship would positivelycontribute to the process of thinking about what we can and shoulddo, now and in the future, to avoid obstacles and blockages; and toachieve more than we can currently imagine.I present the 2009/2010 Annual Report of Gauteng Treasury, whichfully details the achievements and challenges that the organisationdealt with during the financial year.Mandla NkomfeMEC: FinanceThe views expressed by Francis Fukuyama and rest of the liberalideoloques give credence to our vision of the Department of Finance;to become an activist, developmental and interventionist department.This we will do to ensure that where the market fails due to its inherentstructural weaknesses, we will perform as the state and ensure thatthe interests of the masses of our people are secured.Treasury Annual Report 2009/1003

Head of Department ReportThe Annual Report for the financial year 2009/2010is the last that we will table as the Gauteng Treasury.The period under review saw the almagamation of theGauteng Treasury, Gauteng Shared Service Centre,Gauteng Fund Project Office and the Gauteng Fundto create the Gauteng Department of Finance. Thismove has as its intention to accelerate service delivery,enhance institutional capacity and create a moreresponsive government.In keeping with the Treasury’s mandate to preparethe provincial budget and exercise control over itsimplementation, the Gauteng Treasury tabled, for thefirst time ever in 2009/10, a prudent, action orientedbudget focused on attaining outcomes. This budget is adeparture from the norm in that it seeks to systematicallyreverse the legacy of planning and functioning in silos.The outcomes approach to budgeting encouragesinterdepartmental cooperation and collaboration in thedelivery of services to citizens.During the 2009/10 financial year, the GautengTreasury continued to play its mandate and role ofpromoting good governance by providing stewardshipon all financial matters in the province. The provincewas plagued by cash flow challenges largely due todecline in the equitable share and diminished collectionrevenues as a result prevalent economic difficulties thathit the entire global economic system.Accordingly the Provincial Government was required totake some bold and decisive action in order to remedythe situation. In conjunction with the Gauteng PlanningCommission, an extensive re-prioritisation process wasundertaken. The principal objective of the exercise wasfirstly; align spending priorities to the outcomes adoptedby the new administration, secondly; to cut costs inareas that were not in line with these outcomes andmore importantly save at least in excess of R2billion.04 Treasury Annual Report 2009/10

Section OneDepartmental overview10 Treasury Annual Report 2009/10

Section OneDepartmental overviewGOOD GOVERNANCE LEGISLATIVERESPONSIBILITIESThe mandate of Gauteng Treasury is to promote good governanceby providing stewardship on all financial matters in the province. Inessence, the role of Gauteng Treasury is to ensure that strategiesare funded through projects and other initiatives and other initiativeswhich are aligned to the provincial priorities and the principles of theBatho Pele. This entails, amongst others, the following:Supporting and demonstrating the alignment to provincial prioritiesMONITORING MECHANISMDepartment Monitor MechanismGauteng TreasuryFinance StandingCommitteeGauteng LegislatureNational TreasuryOversightOversightMonitoring,Evaluation andReportingEffective allocation of resources to areas that support economicdevelopment and job creation, as well as social delivery in theprovince.Create value for money for providing technical assistance and analysisto spending agencies through efficiency studies, cost-benefits analysisand Social Accounting Matrix.By promoting transparency and access to information throughpublications such as the Medium Term Budget Policy Statement, theBudget Statement and budget inserts in the local newspapers duringthe budget speech.As part of the process of formulating our 2009/2014 strategic planin June 2008, we identified our stakeholders under the followingcategories:Auditor GeneralDepartment ofLabourOffice of thePremierPSETA (training anddevelopment)Annual FinancialStatementsReporting(EmploymentEquity)ReportingReporting(Workplace skillsplan)• Employees and potential employees• GPG departments and its public entities• Municipalities in Gauteng• People of Gauteng• Media• Businesses in Gauteng• The Office of the Auditor General• Provincial Legislature: Finance Standing Committee and the PublicAccounts Committee• Provincial Banker• Academic Institutions• Professional Bodies• National Treasury12 Treasury Annual Report 2009/10

01Treasury Annual Report 2009/1013

Section Two02REPORT ONORGANISATIONALSYSTEMS AND RESOURCES

MONATSREVUELokalaugenscheinWein des MonatsSt. Laurent Reserve 2010Weingut Dopler, TattendorfSmooth Restaurant & Bar, Badgasse 4, 2514 TraiskirchenTel. 02252/57 229, www.smooth.cc Open: Mi-Do 18-24 Uhr, Fr-Sa, 18-04 Uhr SZENELOKALTRAISKIRCHEN: Das „Smooth“ beimStrandbad in Traiskirchen ist eines derneuen Szene-Highlights der Region. Diemodern eingerichtete Bar ist nicht nurMeeting Point von CocktailhungrigenGästen, sondern auch eine sehr positiveRestaurant-Überraschung. Neben demgroßzügigen Bar-Bereich mit Rauchertischengibt es auch einen Nichtraucher–Restaurantbereich. Die modernen Möbelermöglichen es, auch auf engemRaum bequem zu speisen. Serviert wurdeeine sehr solide Knoblauchcremesuppemit Schwarzbrotcroutons (3,90 Euro)und frisch zubereitetes, sehr schmackhaftesBeef Tatare (11,70 Euro). AlsHauptgang entschlossen wir uns für einperfekt gebratenes „Smooth Filet“ vomSchneebergrind mit Schoko-Chillisauceund getrüffeltem Kartoffelpüree (23,90Euro). Lediglich die Cherrytomaten unddie Kresse als Garnitur waren fehl amMONATSREVUEPlatz. Das GegrillteWokgemüsemit Sojaund Zitronengrasmit BasmatireisundRiesengarnelen(18,50 Euro) ,war frisch, sehr schmackhaft, aber etwasscharf (Hinweis auf die Schärfe wäre vonVorteil). Als Dessert entschlossen wir unsfür den perfekten ofenfrischen Schokoladekuchenmit Vanilleeis (5,80 Euro) unddas etwas von der dunklen Schokoladedominierte Duett vom Cremigen Joghurt-Topfenmousse und dunklem Schokolademousseauf Beerenspiegel (6,20 Euro).Dazu gab es eine sehr gute Auswahl anoffenen Weiß- und Rotweinen sowie eineumfangreiche Cocktailkarte für danach.Der von Männern dominierte Service istsehr kompetent, freundlich und stets zurRezept-Tipp"Zucchiniroulade mit Lachsforellentatar"Zutaten für 6 PersonenBereiche max. PunkteEssen (30) 22Trinken (15) 13Service (20) 17Ambiente (20) 18Preis/Leistung (15) 13Gesamt (100) 83Vorspeisen von 2,90 Euro bis 12,80 EuroHauptspeisen von 8,90 Euro bis 23,90 EuroDessert von 5,50 Euro bis 6,20 EuroStelle. Im Laufe des Abends gab es kaumleere Plätze im Lokal und dem Restaurant-Publikum folgte nahtlos das CocktailsüchtigeSzene-Publikum, das neben Cocktails(im Schnitt 8,50 Euro) auf Fingerfoodwie Chicken wings mit French Fries &Dips (8,20 Euro) oder andere Snacks zurückgreifenkann. Alles in allem eine sehrpositive Bereicherung der regional etwasbescheidenen Lokalszene. Im „Smooth“gibt es nicht nur gehobene Szene-Stimmungsondern ein wirklich tolles Restaurantmit absolut fairem Preis/Leistungsverhältnis.ZUBEREITUNG:Der Zucchino wird der Länge nach in dünneScheiben geschnitten, in Olivenöl angebratenund mit Salz und Pfeffer gewürzt.Die aufgelöste, warme Gelatine rührt manzum Kräuter-Frischkäse und schmeckt diesenmit Salz und Créme fraiche ab. Dieüberkühten Zucchinischeiben legt manauf eine Klarsichtfolie und streicht die halbeMenge der Frischkäsefülle darauf. Da-Die Top Qualitätdes St. Laurent wirddurch die Symbiosedes besonderenKlimas in Tattendorfmit naturverbundenerWeingartenarbeitundmodernster Kellertechnikgarantiert.Günther Doplergilt vor allem alsBurgunderspezialist.Als einer derPioniere der neuenRotweinszeneist er mit seinemSt. Laurent andie Spitze derÖsterreichischenWinzer aufgestiegen.Diebesten St. Laurent-Trauben wurdenschonend vergoren und 18 Monateim Barriquefass zur Reife gebracht.Die Überraschung beginnt bereitsim Duftspiel, das mit vielschichtigemWeichselaroma anmutet. Anklängevon Schokolade und Mokka. Zeigtam Gaumen eine wunderschöneDefinition. Bleibt stets samtig undweich. Auszeichnungen: St. LaurentReserve 2010: 91 Punkte FalstaffRotwein Guide Österreich 2013Preis ab Hof: Euro 16,80Weingut Dopler Pottendorferstr. 8,2523 Tattendorf Tel: 02253/81266Öffnungszeiten: Mo - Fr 8-18 UhrSamstag 9-17 Uhrwww.tattendorf.at/dopler1 Zucchino, Olivenöl, Salz, PfefferFRISCHKÄSEFÜLLE200 g Kräuter-Frischkäse1 EL Créme fraicheSalz2 Blätter GelatineLiebstöckl200 g Graved LachsBaslamicoreduktionBlattsalatLACHSFORELLENTATAR250 g Lachsforelle1/2 Zwiebel1 KnoblauchzeheOlivenöl, Frischkräuter, Salz Pfeffernach werden die Blätter vom Liebstöckel, der Graved Lachs und die restliche Frischkäsefülleaufgetragen und zu einer Roulade zusammengerollt. Die Zucchinirolulademuss 3 Stunden kalt gestellt werden bevor sie aufgeschnitten und mit Blattsalat undBalsamicoreduktion angerichtet werden kann. Für das Lachsforellentatar werden alleZutaten fein gehackt un mit Salz, Pfeffer und Olivenöl abgeschmeckt. Mit 2 Löffelformt man das Tatar zu Nockerl und richtet es zur Zucchiniroulade an.IMPRESSUM:MONATS REVUEOBJEKTIV - KRITISCH - UNABHÄNGIG Das Magazin von Bürgern für Bürger unserer RegionMONATSREVUE Medien & Event GmbH.A-2483 Ebreichsdorf, Schlossplatz 5Redaktion: Thomas Lenger, 0660/68 33 222 redaktion@monatsrevue.atUnabhängige Monatszeitung für den Bezirk BadenSie möchten in der MONATS REVUE werben?Wir beraten Sie gerne über die Werbemöglichkeiten in der MONATS REVUE! Sie erreichenuns untermarketing@monatsrevue.atwww.monatsrevue.atwww.monatsrevue.at 193

022010 INTERIM MACRO STRUCTUREGauteng Department of Finance MEC:Mr. Mandla NkomfeGauteng Department of Finance HOD:Mr. Stewart LumkaGauteng Fund Project Office:Mr. Oupa SeabiStrategy Management andMonitoring and EvaluationMs. Sizakele MabuzaTreasury Services:Ms NomfundoTshabalalaShared Services:Mr. MolaodiKhutsoaneAudit Services:Ms. Zoliswa NtombelaFinancialGovernanceMs. NcumisaMnyaniSustainableResourceManagementMr Jeff MasheleProvincialAcccountingServicesMs. NtinaThembaProcureto PayMs. NamhlaSiqazaHire toRetireMr. MaliMboyiTechnologySupportServicesMr. LemmyChappieDocumentManagementCentreMs. ZukiswaNcunyanaOffice of the CFOMr. Clifford AppelCorporate ServicesMs. Ziningi MbeluTreasury Annual Report 2009/1019

20 Treasury Annual Report 2009/10

Section Three03REPORT ON THEPERFORMANCE OFPROGRAMMESTreasury Annual Report 2009/1021

Section ThreeReport on the performance of programmesPERFORMANCES PER PROGRAMMES(TREASURY DIVISION)PROGRAMME 1: ADMINISTRATIONPurposeThe purpose of this programme is to provide effective leadership,management and administrative support to the Head of Departmentand the Treasury Programmes. This is done in fulfilment of missionand mandate of the Treasury. The aim is to provide a comprehensiverange of solutions resulting in, among other things, the refinement ofcorporate strategy, structure and systems, in accordance with bestpractice. These include sound financial administration, supply chainmanagement, auxiliary services and corporate services.The Programme’s Key Strategic Objectives:• To be recognised as the centre of excellence for administrativesupport services by providing value adding and innovativepractices and solutions through strategic partnering with businessunits and programmes.• To provide an integrated and comprehensive communicationsolution that promotes and enhances relationships andpartnerships and the brand identity and image of Treasury.• To ensure an integrated corporate service function that providesstrategic and operational support for the department.• To provide oversight and financial and risk management servicesto the department for the achievement of its objectives andthereby enhancing service delivery, compliance to the PFMA andother relevant legislation.• To facilitate, monitor and drive the overall departmental strategyand planning processes to ensure achievement of GT mandateand intended impact to the provincial priorities.• To provide effective strategic and operational support to theMEC.The programme comprises four sub-programmes:• Strategic Management Services / Office of the HOD• Corporate Services• Financial Management / Office of the Chief Financial Officer• Office of the Member of Executive Council (MEC)Strategic Management Services / Office of the HODThe aim of this sub-programme is to drive the departmental strategy,render strategic support and conduct overall planningStrategic Goal and ObjectivesStrategic goal: To render strategic support to the Head of Departmentand all programs, and to drive departmental strategy.The key Strategic Objective of the sub-programme is:• To drive the Treasury strategy, render strategic support andconduct overall planningKey AchievementsStrategic Leadership, Planning and CoordinationThe Directorate appointed supported staff that started in June 2009to assist with coordinating the Service Delivery and Monitoring andEvaluation functions.In July 2009 the Final Draft of the Departmental Strategic Plan(2009-2014) was approved by the Acting Head of Department ofFinance and the MEC: Finance. Thereafter the Annual PerformancePlan 2009/10, Annual Performance Plan 2010/11 & Service DeliveryImprovement Plan were aligned to the new revised Strategic Plan2009-2014 in August 2009. The Final Draft of the DepartmentalStrategic Plan (2009-2014) and Annual Performance Plan 2009/10and were submitted to the Legislature. Prepared the Department’sStrategic Planning Process Overview for the MTEC hearingsMonitoring and Evaluation (M&E)The Directorate developed the Departmental PerformanceManagement Procedural Manual, which guides on managingPerformance Information in the Department.Quarterly Performance Reports were produced on quarterly basisfor tracking the progress the Departments made in line with the APPand Strategic Plan. The Directorate also coordinated and convenedquarterly Monitoring and Evaluation Task Team meetings, wherequarterly reports for all Units are analysed to verify the alignmentof the Actual Performance to the set targets, ensure that necessarysupporting documents and reasons for deviations are provided.Monthly reports on the Provincial Plan of Action, which outlines thekey priorities of the Province are produced and submitted to theOffice of the Premier.Cross Cutting Issues• The Directorate successfully engaged the units on their monthlyand quarterly performance on cross cutting issues and theProvincial Programme of Action on Premier’s Commitments.Consolidated reports were prepared and submitted to theOffice of the Premier.• Presented the GEYODI report 2008/09 and 1st QuarterPerformance Report 2009/10 to the Finance Caucus Subcommitteeand Finance Committee as well as to the GEYODIStanding Committee of the Legislature on 03 & 12 November200922 Treasury Annual Report 2009/10

03• Prepared the MTEF Presentation on Cross Cutting Issues for theDepartment.• Prepared a progress report on Gender and Disability programmesin January 2010 that was submitted to the Legislature andProduced an analysis report on Youth mainstreaming programmessubmitted to Department Of Infrastructure Development(DID) on March 2010Service Delivery Improvement (SDI)• The Directorate successfully launched the Departmental BathoPele/Service Delivery Forum on the 23 September 2009. Termsof Reference on Batho Pele/Service Delivery & Bi-Annual BathoPele Report were produced and submitted to the Office of thePremier. The Department’s Service Charter was also revised.• The Departmental Annual Citizens’ Report was produced anddistributed to 2 Batho Pele/Service Delivery Forum members aswell as the Bi- Annual Batho Pele Report. The Annual Citizen’sReport will for the first time be printed in Braille, to addressissues of access as envisaged by the Batho Pele Principles.• Developed the revised Service Charter for the Department ofFinance and submitted to Communications Unit for printing anddistribution.Corporate ServicesThe aim of this sub-programme is to provide internal strategic support(best practice) services to the Treasury and its related stakeholders –with regard to human resources management and development,communication, legal, security and auxiliary services and informationtechnology - thereby enabling Treasury to achieve its mandate.Strategic goal: To provide integrated strategic services in HumanResources, Information Technology, Communication and AuxiliaryServices to internal and external clients of Gauteng Treasury thoughthe implementation of policies, processes and systems within specifiedtime frames, enabling the units of the department to functionefficiently and deliver quality servicesKey Strategic objectives:To provide an integrated and comprehensive communication solutionthat promotes and enhances relationships and partnerships and thebrand identity and image of Gauteng Treasury.To ensure integrated corporate services function that providesstrategic and operational support for the department.Key AchievementsAt the start of the 2009/2010 financial year, the Chief Directorate:Corporate Services formulated a detailed operational frameworkwhich included a service delivery improvement- and operational/implementation plan as well as a stakeholder engagement plan.The focus for the period under review was to render integratedstrategic services in Human Resources, Information Technology,Communication and Auxiliary Services to internal and externalclients. This was done through innovative policies, processes andsystems, which would enable the units of the department to functionefficiently and deliver quality services. The team undertook to workproactively by providing reliable services that can be measured andevaluated to ensure accountability. In support of the aforementioned,strategic objectives and key outputs were structured under key focusareas as opposed to functional areas.In June 2009, the Premier announced a reconfiguration of theGauteng Provincial Government which entailed the merging ofGauteng Treasury and the Gauteng Shared Services Centre into asingle Department of Finance. Due to the nature of the servicesrendered by the Corporate Services unit, a significant number ofprojects and initiatives that were initially planned for implementation inGauteng Treasury were put on hold pending the formation of a singleCorporate Services for the Department of Finance. The CorporateServices Chief Directorate played an active role in the roll-out ofthe departmental change management process as a result of theconfiguration of the Department of Finance whereby all functionalunits (i.e. HR, Communications, Information Technology and AuxiliaryServices) were involved. Despite the impact of the reconfigurationprocess, the following key projects and initiatives were implementedduring the period under review per strategic focus area:To be recognised as the centre for corporate services support byproviding value adding and innovative practices and solutions:The Chief Directorate: Corporate Services embarked on acomprehensive stakeholder engagement process whereby internalclients were engaged on their expectations as well as sharing initiativesthat the chief directorate planned to roll out. This engagement processculminated in the formulation of a service level agreement betweencorporate services and other units within Gauteng Treasury. Due tothe merger of the GSSC and Gauteng Treasury into the Departmentof Finance, the service level agreement was not fully implemented butwill be used as a basis for corporate services being rendered in theDepartment of Finance.To provide an integrated and comprehensive communicationsolution that promotes and enhances relationships and partnershipsand the brand identity and image of Gauteng Treasury:The Communications unit continued to provide a comprehensivecommunication service to the department by implementingthe communication strategy that was developed in the 2008/09financial year. Amongst others, an in-house graphic design functionwas established whereby all corporate documents (e.g. posters,pamphlets, publications) were designed, thereby ensuring a significantcost saving for the department. Emphasis was placed on building animproved media relations function through issuing press statementsand responding to the media in a timeous manner. A media policy andTreasury Annual Report 2009/1023

Section ThreeReport on the performance of programmesmedia protocol was also developed and implemented. In response tothe need for improving accessibility to information, an intranet facilitywas developed and implemented and the departmental internetwebsite was enhanced. The Unit also published an internal newsletteron a quarterly basis and an internal resource centre was establishedduring the period under review.Various events were facilitated by the Communications Unit whichincluded exhibitions at the Gauteng Legislature during the tabling ofthe provincial budget, World AIDS Day Commemoration, Rand Show2009, GDF staff meetings and other internal events.In response to the need for building partnerships with the emphasison skills and knowledge exchange, the Department successfullyimplemented an exchange programme with the Ontario ProvincialGovernment whereby two Gauteng Treasury employees weredeployed for a period of two months. In addition, the departmententered into a memorandum of understanding with the ServicesSeta.To ensure an integrated corporate service function that providesstrategic and operational support for the Treasury:In previous financial years Gauteng Treasury utilised the informationtechnology infrastructure of the Department of EconomicDevelopment. During the period under review, Treasury migratedto the Gauteng Single Domain, configured its own IT servers, andimplemented backup facilities and shared folders. The first and secondphases of Employee Self Service (ESS) were implemented in thedepartment whereby the leave application process was fully automatedand employees can now also update their own personal informationon the SAP system. An Information Technology Asset ManagementPolicy was developed and implemented, whereby standardisation ofthe management of IT assets was ensured. Gauteng Treasury set itselfthe target of achieving and maintaining a vacancy rate of 10%. Thistarget was, however, not met where the vacancy rate as at 31 March2010 was 17%. The deviation came as a result of the moratorium thatwas placed on the filling of vacancies as from September 2009 due tothe configuration of the Department of Finance.The Department implemented its first Learnership Programme(12 in total) in 2009 and continued with the implementation of itsannual Internship programme (24 in total). An annual WorkplaceSkills Plan was compiled for the 2009/2010 financial year and 23different training and development programmes were implementedincluding, amongst others, the following; Emerging- and AdvancedManagement Development Programmes, EQ Development,Gender Mainstreaming, Financial Fitness, Labour Relations, ProjectManagement, Business Communication, Ethics & Anti-Corruption,Performance Budgeting & Costing, Monitoring and Evaluation andSkills Development Facilitation. The Department spent a total amountof R4, 591,153 on HRD interventions (including learnerships). A totalof 87 bursaries (existing and new) were awarded to employees in theDepartment.In line with the departmental Employee Wellness strategy, thefollowing interventions were implemented: men’s health, women’shealth, gender mainstreaming, awareness campaign on disability,relationship presentation, information sessions on HIV treatment &Prophylaxis. A Departmental HIV/AIDS policy was developed andimplemented and an e-Care facility was launched.Significant progress was made in respect of implementing policies andprocedures in the areas of security- and auxiliary services. A theft andloss procedure was developed, approved and implemented, a Healthand Safety committee was established and a process of implementingsecurity vetting (clearances) for all employees in Treasury was donein conjunction with the National Intelligence Agency (NIA). AnOccupational Health and Safety (OHS) policy was developed andapproved and Fleet Management procedures and a Transport Policywere developed, approved and implemented.A records management policy was developed and a file plan wasapproved by National Archives.To ensure the effective and efficient management of the SubProgramme:The Chief Directorate: Corporate Services developed acomprehensive operational plan for the period under review andregular management meetings took place where progress wasmeasured. The annual budget of the chief directorate was alignedto the strategic objectives as identified in the operational- and annualperformance plan.To ensure a high performance culture that encompasses theTreasury’s values:In line with the Provincial Performance Management and Developmentframework, all employees in Gauteng Treasury had signedperformance agreements; Levels 1 – 12: 92% and Senior Managers:83%. The 8% difference for staff on levels 1-12 and 17% for SMS isdue to the appointment/promotion of staff whereby all new entrantshave to enter into new agreements within a period of 3 months.Financial performance incentives for the 2008/09 financial year wereconsidered and processed within the first quarter of the year underreview. 3 units within Gauteng Treasury attended EQ developmenttraining programmes with positive results and feedback.The main emphasis of the Corporate Services Chief Directorateduring the last 6 months of the period under review was on the changemanagement process and the integration of GSSC and Treasury plans,policies and procedures for the Department of Finance.24 Treasury Annual Report 2009/10

03CFO’s OfficeThe aim of this sub-programme is to provide strategic financial andrisk management services to the Department, (and strategic supportto the HOD in achieving his/her duties), and thereby enhance servicedelivery.Strategic goal: To deliver financial management, supply chain and riskmanagement services for the Treasury.Key Strategic objective:• To provide oversight and financial and risk management servicesto the department for the achievement of its objectives andthereby enhancing service delivery, compliance to the PFMA andother relevant legislation.Key achievementsThe submission of the Annual Financial Statements to the AuditorGeneral before the due date was the main achievement during the 1stquarter. A detailed audit file supporting the disclosures in the financialstatements was also submitted to AG. The Office of the CFO alsoheld bilateral engagements with all subprograms to communicateits services and expectations of the business units. The Barnowl riskmanagement system was installed on all SMS members’ computersto ensure that the risk database is accessible to all SMS members.The risk registers for all the units were updated for 2009/10 year.All the 2008/2009 internal audit findings have been followed up andmost corrective measures have been implemented by management.The unit also implemented control to account for and measure itsperformance on the settlement of supplier accounts.Control Risk Self Assessment workshops, Fraud Risk Workshop wereconducted and a Fraud Prevention Plan developed and implemented.Weekly publications through GT communication to create awarenesson fraud and corruption and to encourage whistle blowing.Continued follow-ups on the implementation and maintenance ofinternal audits performed by Gauteng Audit Services (GAS). Closerworking relationships were established with all Units’ managers andtheir staff through bi-monthly bilateral meetings to discuss all matterspertaining to Financial Management. The success of these meetingswas evident through the following:• Timeous collection of the Annual and Adjustment budgetinformation, consolidation with GSSC and submission to theProvincial Budget Management unit• Successful reprioritisation of budgets to fund all underfundedand emerging priorities due to regular interrogation of budgetsand commitments• Reduced average settlement period for suppliers due to paymentmanagement controls that were implemented• Timeous submission of the In Year Monitoring (IYM) of theDepartment to the Provincial Budget Management unit• All assets purchased are bar-coded and registered on the assetregister complying with the minimum requirements of assetregister as guided by National Treasury. Two asset verificationswere conducted during the year to ensure existence of all assetsin the department• Reduced turnaround times for the creation and payment oforders due to proactive Demand ManagementMEC’s OfficeThe aim of this sub-programme is to provide political, strategic andadministrative support to the MEC, thereby ensuring the MEC is ableto fulfil his role in providing direction, oversight and facilitation to thedepartments.Strategic goal: To provide political, strategic and administrativesupport to the MEC, thereby ensuring the MEC is able to fulfil his rolein providing direction, oversight and facilitation to the department.Key Strategic objective:• To provide effective strategic and operational support to theMEC.Key achievementsThe sub programme has developed and implemented administrativesystems that enabled effective support to the executive authority. Partof such included the information and communication system. Thesystem has been used to generate information to inform the politicalprogramme and day to day activities of the executive authority.The sub- programme has also supported all the oversight platforms(Monitoring and Evaluation sessions) established to help the MEC toengage with the Executive Management in tackling policy questionsand provide political leadership and direction to the Department.These also include the monitoring of the implementation of the fiveyear strategic plan and reconfiguration process of the Department, aswell as the review of the Gauteng Shared Service Centre.The media plan developed and implemented in conjunction with thedepartmental Communication Unit. The main focus of the media planwas on the tabling of the 2009 Budget Speech, 2009 Medium TermBudget Policy Statement and Adjustment Budget, and 2010 BudgetSpeech as well as community outreach programme launched as partof Executive Council izimbizo focusing on alcohol abuse and backto school campaigns. Our media strategy also responded to the keyissues in the public discourse. The strategy and visioning excise of theDepartment was completed under the political stewardship of theMEC in accordance with the timeframe set by the Executive Council.It is in this context that the vision of the Department is activist,interventionist and developmental orientated.Treasury Annual Report 2009/1025

Section ThreeReport on the performance of programmesThe office tracking system on parliamentary matter was developedand implemented as a management tool. The system is used to trackall the parliamentary matters that have bearing on the portfolio of theExecutive Authority. The system was reviewed quarterly to assess itseffectiveness.Following the launch of Presidential Hotline, dedicated capacity wasbuilt in the sub-programme to primarily manage the coordination withrespect to the queries arising out of the hotline. The tracking systemwas developed and implemented to ensure effective coordination andmanagement of the public queries.In conjunction with the Office of the Premier, the Leader ofGovernment Business (LGB) model was developed and implemented.The model reaffirms the role of the LGB in ensuring the strategiccoordination of government business in the Legislature. It also identifieskey elements and system issues to guide the Office of the LGB andEXCO in facilitating and coordinating the legislative programme andmatters that relates to the government business in the Legislature.The key element of the model includes the followings:• Tracking of the legislations• Tracking of the tabling of quarterly and annual reports of thedepartments in the Legislature.• Tracking of the Legislature`s questions and resolutions.• The tabling of departmental budget votes in the LegislatureThe 2010 Legislative programme was developed in conjunctionwith Office of the Premier. The programme outlined the legislationsthat Executive Council intends to table for consideration by theLegislature.PROGRAMME 2: SUSTAINABLE RESOURCEMANAGEMENTPurposeThis programme aims to optimise resource allocation, utilisationand revenue to maximise the net social benefit to the citizens of theGauteng.The Programme consists of five sub-programmes:• Economic Analysis and Fiscal Policy• Budget Management• Public Finance• Public Private Partnership• Local Government Resources Management and IGRStrategic ObjectivesThe key Strategic Objectives of the Programme:• To be known as the producers of cutting edge finance andeconomic solutions.• To ensure credible financial and non-financial reporting.• To facilitate, advice and support the alignment and integration ofplanning and delivery in the province.• To effectively manage the budgeting process for the Province.• To manage and oversee the implementation of strategic financingsolutions.• To institutionalise tools to inform the constraints, growthopportunities and allocation processes.• To ensure the effective and efficient management of theprogramme.• To attract highly skilled and competent people and foster highperformance.Economic Analysis and Fiscal PolicyThe aim of this sub-programme is to maximise current revenuesources and optimise potential new revenue streams; to develop andimplement a provincial comprehensive revenue strategy; to provideadvisory services to relevant stakeholders on fiscal policy matters andthe medium term fiscal framework; and to provide provincial socioeconomicresearch and analysis in order to inform resource allocationand utilisation.Strategic goal: To provide provincial socio-economic research andanalysis in order to inform resource allocation and utilisation.Strategic objectives:• To be known as the producers of cutting edge finance andeconomic solutions.• To ensure credible financial and non-financial reporting.26 Treasury Annual Report 2009/10

03• To facilitate, advice and support the alignment and integration ofplanning and delivery in the province.• To effectively manage the budgeting process for the Province.• To manage and oversee the implementation of strategic financingsolutions.• To institutionalise tools to inform the constraints, growth andallocation processesKey AchievementsThe Unit in collaboration with Public Private Partnership Unitprepared a detailed report about the alternative sources of provincialrevenue. Detailed monthly own revenue reports were also preparedto inform the Provincial Executive about own revenue collection. Aspart of MEC for health turnaround strategy, the Unit prepared aresearch report with clear recommendations on improving revenuemanagement processes in Health. Furthermore, funding was madeavailable for the implementation of an electronic data interfaceto assist the Department of Health in submitting electronic bills toMedical Aids.The Unit played a leading role in the explaining the financial obligationsand implications of the reincorporation of Merafong back into GautengProvince to all GPG departments. Annual projects like the ProvincialEconomic Review and Outlook (PERO) and the Socio-EconomicReview and Outlook (SERO) were published as per set targets.The objective of these publications is to provide a well researchedreview and outlook of the provincial economy for policy decisionsto have a point of reference. In addition, the Medium Term BudgetPolicy Statement (MTBPS) which outlines priorities of the provincialgovernment over the next three years was tabled at the ProvincialLegislature. The unit also managed to compile an impact study reporton the impact of 2010 World Cup on the economy of the provinceusing the Provincial Computable General Equilibrium (CGE) model.Budget ManagementThe aim of this sub-programme is to allocate resources in an optimaland transparent manner which is aligned to national and provincialpriorities and addresses equity, need and spatial development; and toimplement budget reforms which enhance budgeting processes in theprovince and enshrine the stochastic nature of budgeting.Strategic goal: To optimally allocate resources in a transparent manneraligned with provincial priorities.Strategic objectives:• To be known as the producers of cutting edge finance andeconomic solutions.• To ensure credible financial and non-financial reporting.• To facilitate, advice and support the alignment and integration ofplanning and delivery in the province.• To effectively manage the budgeting process for the Province.• To manage and oversee the implementation of strategic financingsolutions.• To institutionalise tools to inform the constraints, growthopportunities and allocation processes.Key achievementsEconomic and political major changes in 2009/10 impacted on thefunction of allocating the limited provincial resources to meet theservice delivery. The Department prepared a provincial budget fortabling in the Gauteng Provincial Legislature in June 2009. This budgetreflects reconfiguration of provincial departments to effectivelydeliver services in a more efficient and diligent manner to the peopleof the Gauteng based on 2009 Medium-Term Strategic Framework.The Department prepared the 2009/10 Provincial Adjustment Budgetfor tabling in the Gauteng Provincial Legislature in November 2009and March 2010. The main feature of the November 2009 budget isthe Provincial process of budget reprioritisation to fund the spendingrequirements of the new government to drive the programmes andprojects that would effect to the new mandate. The departmentconvened meetings of the provincial committees (namely: the MediumTerm Expenditure Committee and the Premier Budget Committee)to discuss resource allocation and reallocation through this budget.A further reprioritisation of provincial budget to fund unforeseeableand unavoidable expenditure incurred in 2009/10 resulted in thetabling of the March 2010 Provincial Adjustment BudgetThe main output of the 2010/11 provincial budget process is the 2010MTEF provincial budget that the department prepared for tabling inMarch 2010. This budget facilitated further implementation of thenew provincial government’s mandate.The development of the provincial budget database and datawarehouse system continued in 2009/10 to ensure the availabilityof high-level budget data integrity. Progress regarding the databaseincludes technical development, user testing, piloting and uploading ofinformation. Progress regarding the warehouse relates to the captureof historical data up to 2008/09 financial year.The planning, budgeting and reporting reforms implemented during thefinancial year relate to the introduction of the 2010 MTEF frameworkfor strategic and annual performance plans to provincial departmentsin May 2009, introduction of the Estimates of Provincial Expenditurethat replaces the Provincial Budget Statements and improvements inthe 2009/10 Quarterly Performance Reporting Model.The new framework for strategic and Annual Performance Plans(APP) provides new format of these plans and requires submissionof these plans approximately a month prior to the submission ofbudgets with effect from 2010/11 financial year. The Estimates ofTreasury Annual Report 2009/1027

Section ThreeReport on the performance of programmesProvincial Expenditure is a redesigned provincial budget documentin line with the national budget documents. Enhanced automation inthe Quarterly Performance Reporting model in 2009/10 improvesits security and therefore ensures data integrity by prohibiting datachanges after a predefined reporting period.In implementing budgetary reforms, the department discussed keyissues and trained provincial departments on technical issues relatingto the 2010 MTEF budget preparation in the Budget Forum heldduring the financial year.Public FinanceThe aim of this sub-programme is to provide strategic support todepartments and agencies to effectively utilise public resources; toconduct sector level policy analysis in order to maximise efficiency gainsand value for money; and to monitor and evaluate the performanceoutcomes of spending agencies.Strategic goal: To ensure effective utilisation of provincial resourcesthrough monitoring and evaluation of departmental budgets andservice delivery.Strategic objectives:• To ensure credible financial and non-financial reporting.• To facilitate, advice and support the alignment and integration ofplanning and delivery in the province.• To effectively manage the budgeting process for the Province.• To manage and oversee the implementation of strategic financingsolutions.• To institutionalise tools to inform the constraints, growthopportunities and allocation processes.Key achievementsAs part of its role of oversight, guidance and input into provincialbudgetary planning, development, implementation and analysis, PublicFinance began by compiling a circular, approved by Executive Council(EXCO) on cost containment measures to be adopted by GPGdepartments in the 2009/10 financial year. Closely linked to this wasa review of ineffective programmes that was prepared for discussionat the Budget Lekgotla, entailing a high-level discussion of the possiblere-direction of resources to priority areas. In addition to this, followingthe submission of terms of reference to the MECs of Health and SocialDevelopment and Finance, a team from the unit was deployed to theGauteng Department of Health and Social Development to assist inthe undertaking of a reprioritisation and cost-cutting exercise aimedat alleviating the budgetary pressures facing the department.In terms of Budget Implementation and quarterly assessment reports,the unit prepared the 2008/09 financial year preliminary outcomereport and Cabinet Memo to EXCO. Detailed expenditure reportswere completed for the fourth quarter of the 2009/09 financial year,as well as for the first and second quarters of the 2009/10 financialyear. In addition to this, monthly expenditure reports for July andAugust 2009 that were consolidated into Cabinet Memos for EXCO.Furthermore, a structured and detailed mid-year expenditure reviewwas conducted of budgets and expenditure with a view to ensuringthat Departments remained within their allocated budgets andthe ensuing report on this exercise was accompanied by a CabinetMemorandum to EXCO.For the MTEF and Adjustment Budget Analysis, the MediumTerm Expenditure Committee Hearings for the 2010 MTEF wereconducted and reports subsequently submitted to the Premier BudgetCommittee. The unit also analysed and responded to all requests forroll-over of funds from the 2008/09 financial year, which were partof the Adjustment Budget tabled in November 2009. A chapter onexpenditure was also prepared for the 2009 Medium-Term BudgetPolicy Statement. Public Finance was also instrumental in monitoringthe implementation of Conditional Grants, which entailed the sign-offof 2009/10 business plans and assessment of 2008/09 performancereports as required by the Division of Revenue Act (DoRA) andsubsequent submission to National Treasury. A report was preparedon the Devolution of Property Rates Conditional Grant to determinethe additional financial resources required for the 2009/10 financialyear and beyond.Monitoring and facilitation of the Implementation of the InfrastructureDelivery Improvement Programme (IDIP) model continued to be amajor focus for the unit. Planning Infrastructure Delivery ReportingModel (IRM) for all infrastructure delivery departments were assessedand submitted to National Treasury, as were the infrastructure plansfor the 2009/10 financial year. This was followed by detailed reviews ofinfrastructure delivery in the province for each infrastructure portfolioand the alignment of the planning IRM to the Budget Statement 3.The unit also provided training to Departments to aid in theimprovement of credibility of the IRM, with specific focus on the useof Pivot Analysis Tool and Trend Analysis Tool (TAT). With a viewto utilising scarce resources prudently, the unit embarked on andcompleted the development of a unit costing model for buildingschools, and also developed, in consultation with the Departmentsof Infrastructure Development and Health and Social Development,terms of reference for the audit/assessment of legal, technical andfinancial affairs of the Zola/Jabulani Hospital project being constructedunder the auspices of the Hospital Revitalisation Conditional Grant. Inthe 2009/10 financial year, two structures were launched with a viewto effectively managing infrastructure delivery in the province.The Executive Infrastructure Management Committee (EIMC), madeup of MECS of infrastructure delivery departments and GDF and thehead of the Planning Commission, together with heads of respective28 Treasury Annual Report 2009/10

03Departments held its inaugural meeting, followed by that of theProvincial Infrastructure Management Committee (PIMC), made upof heads of Department and senior management directly involved ininfrastructure delivery. Site visits were also conducted for number ofprojects that under construction.Research activities carried out in the 2009/10 financial year focusedon highlighting the link between urban poverty and public/physicalinfrastructure, the determinants of this poverty and the impact oneach other. Sector advice to Departments was dispensed on anon-going basis through a plethora of memos and reports. PublicFinance played a key role in assisting Gauteng Department of SocialDevelopment prepare for the implementation of Occupation SpecificDispensation (OSD) for doctors, dentists, pharmacists and EmergencyMedical Services (EMS) personnel.It’s worth mentioning that Public Finance obtained a clean auditreport during the internal audit that was conducted by Gauteng AuditServices.Public Private Partnerships (PPPs)The aim of this sub-programme is to facilitate, manage and overseesuccessful PPP initiatives that will contribute to economic growthand development, create employment opportunities and promoteenabling environment for infrastructure improvement.Strategic goal: To facilitate, manage and oversee the successful PPPinitiatives that will contribute to economic growth and development,create employment opportunities and promote enabling environmentfor infrastructure improvement.Strategic objectives:• To ensure credible financial and non-financial reporting.• To facilitate, advice and support the alignment and integration ofplanning and delivery in the province.• To manage and oversee the implementation of strategic financingsolutions.• To institutionalise tools to inform the constraints, growthopportunities and allocation processes.Performance of the unit is measured against the following:• Ensure compliance to regulatory framework in accordance withPPP regulations(provincial and municipal)• Provide guidance to infrastructure initiatives finding the besttechnical, financial and legal option to procure a project;• Ensure a diversified portfolio of PPPs aimed at equitable spreadof initiatives.• Provide an oversight to implementation of strategic financingsolutions to support the province’s economic growth, jobopportunities and infrastructure delivery.Key Achievements:The oversight and regulatory role the unit plays is derived fromTreasury Regulation 16 to the PFMA, 1999 as amended and MunicipalPPP Regulations, 2008, in accordance with MFMA, 2003 and MSA.Additional achievements worth-noting are as follows:• Provided support to Gauteng Department of Health and SocialDevelopment (GDH&SD) in conceptualising a new health PPPdelivery model. This resulted in Dr George Mukhari hospital beingregistered as a PPP project in addition to Chris Hani Bara PPP,whose feasibility study is being revised for a Treasury Approvalprocess. The implementation agreement to expedite delivery onthe new health PPP model is being finalised. Signatories to theimplementation agreement include GDH&SD, National Treasuryand Development Bank of Southern Africa (DBSA).• Presentation of Alternative Financing Options for Infrastructurepaper at Budget Lekgotla held in July 2009. The paper examinedvarious options as well as their risk profile as well as relevance toprojects in various sectors.• A municipal PPP conference was held in February 2010, whereinGauteng municipalities and private sector (incl. commercial banks,law and accounting firms) were in attendance. The purpose ofthe conference was to encourage municipalities to explore PPPsas alternative service delivery approach in waste, water andsanitation as priority sectors.• Newly registered projects with National Treasury; includeInnovation Hub and Automotive Supplier Park, all from BlueIQ. The purpose of the projects is mainly to resolve capacitychallenges, resulting in growth prospects potentially enhancinginvestment to the province in these sectors.The main impediments impacting on achievements of some outputsare as below:• Indecisiveness by procuring institutions (departments includingentities and municipalities).This in turn delays progress on project cycle.• Lack of support at political level, resulting in fewer projects beingexplored as PPPs.• Reluctance by potential clients to explore PPPs, citing reasonsthat PPP planning process take long to implement, resulting infewer projects being explored as PPPs.• Poor communication between provincial and nationaldepartments, leading to progress delays in project phases.• Lack of sufficient planning for projects, resulting in cost and timeoverruns.• Constant change in management structures, this ultimatelyresults in fewer projects being followed through.• Lack of resources, staff and required experience and skills to runprojects within departments exploring PPPs.Treasury Annual Report 2009/1029

Section ThreeReport on the performance of programmesKey Strategic Interventions put in place:• Support clients to run PPP processes in parallel• Select pilot projects to show case value add PPPs can bring;• Engage departments during MTEC Hearing sessions to explorePPPs as alternative service delivery approach;• Encourage solid waste, Water and Sanitation projects in amunicipal arena;• Encourage participation from head/national office in steeringcommittee meetings;• Regulate inception through Feasibility Study for projects beingexplored as PPPs;• Support capacity through collaboration with DBSA in the formof resources and project management expertise.LGRM & IGRThe aim of this sub-programme is to ensure implementation andcompliance to the MFMA in all Gauteng municipalities.Strategic goal: To ensure implementation and compliance to theMFMA in all Gauteng municipalities.Strategic objectives:• To be known as the producers of cutting edge finance andeconomic solutions.• To ensure credible financial and non-financial reporting.• To facilitate, advice and support the alignment and integration ofplanning and delivery in the province.• To effectively manage the budgeting process for the Province.• To manage and oversee the implementation of strategic financingsolutions.• To institutionalise tools to inform the constraints, growthopportunities and allocation processes.Key AchievementsThe Local Government Resource Management & IGR (LGRM & IGR)unit achieved the following milestones in the 2009/10 financial year:-• As part of an ongoing effort to make local governmentwork better, the LGRM & IGR unit will continue oversee theimplementation and compliance with the Municipal FinanceManagement Act (MFMA) in the municipalities across Gauteng• We have provided support to municipalities in an effort to assistthem to comply with the requirements of the new BudgetFormats and Reporting Regulations• We have recently developed a tariff determination model thatwill aid municipalities in developing tariff structures that are costreflective• As part of an initiative aimed at assisting municipalities to deal withoutstanding debtors, we have established a Debt ManagementCommittee, comprising largely of representatives from theprovincial sector departments and municipalities, to resolveoutstanding government debt owed by provincial departmentsto municipalities. This initiative has already yielded some resultsas some municipalities have already received substantial sums ofmoney as part of settling the outstanding government debt.• The Municipal Support Plan – this initiative is managed jointlywith the Department of Local Government and Housing. Itspurpose is to provide support to municipalities on issues offinancial management, governance and administration. As partof the support to municipalities for the 2009/10 financial year,the unit primarily focused on the following:• Deployment of Senior Engineers – for acceleration ofinfrastructure spending and development;• Deployment of Suitably Qualified Accountants (SQA’s)– who assisted with financial management issues andcapacity building; and• Revenue Enhancement –which assisted municipalitieswith data cleansing towards systematic data integrity,billing improvement and ultimately optimising on theirreturn on outstanding debtors• The support plan is currently under review by all stakeholders todetermine its successes, lessons learnt to date as well as ways ofenhancing the programme for the benefit of the municipalitiesand the province alike.• The Municipal Fora – through this ongoing initiative, the unitseeks to drive improvement in terms of financial managementrelated processes. These fora are aimed at driving MFMA relatedreforms throughout municipalities in Gauteng and ensuring thatuniform standards are applied in terms of municipal finance.These fora include the following:• Municipal District CFO Forums;• Municipal Financial Management Interns Forum;• Municipal Budget Bilateral; and• MEC Indaba (MEC & Municipal MMC responsible forFinancial matters)• The unit has been actively involved in monitoring theimplementation of municipal interventions particularly themunicipal financial recovery plan in Nokeng Tsa Taemane LocalMunicipality30 Treasury Annual Report 2009/10

03PROGRAMME 3: FINANCIAL GOVERNANCEPurpose of the ProgrammeThe programme aims to create an enabling environment that willensure sound financial management leadership in the Province,through the implementation of best accounting practices, supplychain management, enterprise wide risk management, cash flowmanagement and financial management systems.Financial Governance Key Strategic Objectives:• To be a credible partner in Financial Management practices andsystems.• To ensure accounting best practices within the Province.• To ensure the implementation of enterprise wide riskmanagement within the Province.• To ensure optimised cash management and enhanced financialmanagement systems for the Province.• To enhance compliance to relevant legislation and regulations.• To ensure the effective and efficient management of the FinancialGovernance programme.• To attract highly skilled and competent people and foster highperformance.The Programme consists of three sub-programmes:• Accounting Services• Asset and Liabilities Management• Risk ManagementAccounting ServicesThe aim of this sub-programme is to provide strategic leadership,guidance and support to all GPG departments and municipalities inthe implementation of financial accounting and reporting practices aswell as supply chain management.Strategic goal: to provide strategic leadership, guidance and supportto all GPG departments and municipalities in the implementation offinancial accounting and reporting practices as well as supply-chainmanagement.Strategic objectives:• To be a credible partner in Financial Management practices andsystems.• To ensure accounting best practices within the Province.• To ensure optimised cash management and enhanced financialmanagement systems for the Province.• To enhance compliance to relevant legislation and regulationsKey AchievementsThe Accounting Services unit finalised and printed the consolidatedfinancial statements from 2004 to 2009 in the current financial year.The provincial revenue fund received an unqualified audit opinionfor 2008/09 financial year .The unit provided training on accounting(GRAP standards to municipalities and entities).It also completeda Financial Management Capability Maturity model that asses thefinancial management capability of GPG departments and the resultwill be used as a basis for assistance and technical guidance that will beprovided in the next financial year.The Asset Management Unit continued to provide technical supporton asset management in the province and has also published an assetmanagement procedure manual for GPG departments and entities.The Unit also provided a draft asset management plan for theDepartment of health to address recurring audit queries. Conductedsurvey on the status of asset management at municipalities and thiswill be used to draft and intervention plan in the New Year. TheSupply Chain Management unit provided training to municipalities andassisted in rolling out the electronic reporting to National Treasury oncontracts entered into by Municipalities.The Municipal Financial Accounting Unit acquired the Case-waresoftware (a reporting tool) which assisted Municipalities in preparationof credible and reliable Annual Financial Statements. The Unit alsoprovided quality review on the AFS to ensure compliance to GRAP.The Unit worked extensively with Kungwini Municipality and secondedan official to act in the capacity of a CFO for the municipality. The Unithas completed the assessment on the effectiveness of internal auditand audit committees at local government in the current financial year.The audit opinions for municipalities have improved and this can beattributed to the support the unit provided throughout the year.Asset and Liabilities ManagementThe aim of this sub-programme is to ensure sound cash managementand the implementation of financial management systems for theProvince.Strategic goal: to ensure sound cash management and theimplementation of financial management systems for the Province.Strategic objectives:• To ensure accounting best practices within the Province.• To ensure optimised cash management and enhanced financialmanagement systems for the• Province.• To enhance compliance to relevant legislation and regulations.Key achievementsAssets and liabilities in its quest to optimise liquidity for the provincetransferred all the voted funds to department according to budget. Allover one million payments were processed on time. Liquidity planningwas done in such a way that the minimum overdraft was used at anyTreasury Annual Report 2009/1031

Section ThreeReport on the performance of programmesgiven point in time to cut down on interest costs. A total of R54.06million, interest revenue was generated from investments.Treasury assisted departments in strengthening cash flow managementin departments. Expenditure has been closely monitored to avoidan overrun of expenditure against revenue thereby creating a cashshortage in GPG. Rolling cash flow projections are used to determinesufficiency of cash resources against expenditure and for planningpurposes. Treasury continued to apply the monthly cash allocations todepartments to align expenditure to available cash.Created databases of all merged departments as promulgated witheffect from 01/04/2010. Created database are:-• Gauteng Department of Finance• Gauteng Department of Local Govt and Housing• Gauteng Department of Health and Social DevelopmentThe Sub-programme assisted Health to incorporate Charlotte Maxekeinto the Main Account. Transfer of personnel to the new databaseseffected for all merged departments to be effective as of 01 April2010. SCOA Training has been conducted in 2009/10.Risk ManagementThe aim of this sub-programme is to ensure the implementationof enterprise wide risk management within the Province, as well asensuring compliance to the PFMA.Strategic Goal: to ensure the implementation of enterprise wide riskmanagement within the Province, as well as ensuring compliance tothe PFMA.The Gauteng Provincial Government (GPG) Audit Committee Charterand Audit Policy were approved by the Head: Treasury Division andthe Executive Authority: Finance. Schedule of Audit CommitteeMeetings for 2009/10 was prepared and approved by the Acting Head:Treasury Cluster Audit Committee and Provincial Audit Committeemeetings were held successfully with meetings achieving the desiredoutcomes. Value-adding of the Audit Committee was enhanced withthe appointment of skilled and highly qualified members to serve onthe GPG Audit Committee. Audit Committee member’s Training andInduction sessions were conducted successfully.Improvement in compliance with the Public Finance Management Act(PFMA) was recorded. Guidelines on the approval of cheques weredeveloped. Cheque approvals were decreased due to strict measuresin place. GPG CFOs qualifications survey was conducted successfully.GPG Public Entities’ database developed.Despite the achievements in the units, we experienced the followingchallenges:• Unfunded or non-existing Chief Risk Officer positions atmunicipalities pose a serious challenge to the implementation ofEnterprise Risk Management.• Lack of buy-in by senior management remains a challenge.• GSSC issuing cheques without Treasury’s approval• Public entities contravening Section 67 of the PFMA.• Non-co-operation from Departments• Non-filling of vacancies within the Cluster Audit CommitteeStrategic objectives:• To ensure accounting best practices within the Province.• To ensure the implementation of enterprise wide riskmanagement within the Province.• To enhance compliance to relevant legislation and regulationsKey AchievementsThe annual Enterprise Risk Management (ERM) process review wasconducted in quarter one. Follow up on implementation of remedialaction were done on a quarterly basis. Phase one of the developmentof Standard Procedure Manuals for provincial departments wascompleted in quarter four. Risk Management Forums were successfullyconducted through the year, building ERM capacity at departmentallevel. We facilitated the registration of Chief Risk Officers on the RiskManagement E-learning tool. Two municipalities are having approvedEnterprise Risk Management Frameworks and seven municipalities’are in draft format.32 Treasury Annual Report 2009/10

03PROGRAMME 1: ADMINISTRATIONSub-ProgrammeStrategicManagementServiceStrategicObjectiveTo drive theTreasury strategy,render strategicsupport andconduct overallplanningMeasurableObjectiveReview of theDepartment’s SDIPsand development ofthe Quarterly SDIPReview ReportsPerformanceMeasure/IndicatorQuarterly Reportson Service DeliveryAnnual Target2009/10Department’s 3 YearService DeliveryImprovement Plansconsolidated4 Quarterly ServiceDelivery ReportsActual AchievementAgainst TargetThe Department’s 3 YearService Delivery ImprovementPlan was consolidated duringthe 2nd quarter and submittedto the Office of the Premier4 service delivery reports wereproduced and submitted to theOffice of the PremierReasons forDeviations/VariationImproved Planningand Coordinationof managementprocessesNumber ofMonitoring &Evaluation (M&E)Task Team meetingsheld4 M&E Task Teammeetings held4 quarterly M&E Task Teammeetings were held to analyseand improve on the quarterlyperformance reportsDepartmentalQuarterlyPerformance reportDepartmentalquarterlyPerformancereports4 QuarterlyPerformancereports4 quarterly performance reportproduced and submitted toBudget Management Unit forsubmission to National TreasuryAnnual PerformancePlans producedRevised AnnualPerformance Plans2 revised APP 1 revised APP produced on the21 August 2009 and submittedto legislatureTabling ofconsolidated AnnualPerformance Plansof Gauteng TreasuryConsolidatedAnnual PerformancePlans of GautengTreasuryConsolidatedAnnual PerformancePlans of GautengTreasury - Annuallyin MarchA Departmental AnnualPerformance Plan 2010/11 wasconsolidated and submitted toBudget Management Unit forsubmission to National TreasuryAnnual reporttimeously finalisedaccording to PFMAprescriptsAnnual Reporttabled to theLegislatureDraft AnnualReport consolidated& submitted to theAG in MayDraft Annual Report submittedto the Auditor General at theend of May 2009Annual Reporttabled to theLegislature -Annually in AugAnnual Report tabled to theLegislature in Aug 2009Quarterlymonitoring andevaluation reportsproducedDepartmentalQuarterlyprogress reporton the Premier’sCommitments4 Progress reportson Premier’sCommitmentsto be producedand submitted toPremier’s office2 quarterly and 6 monthlyreports on Premier’sCommitments were producedand submitted to the Office ofthe Premier2 Progress report on theimplementation of theProvincial 100 Days Calendarwas prepared and submitted tothe Premier’s OfficeThe Office ofthe Premierrequested thatsubmission bemade on monthlybasis fromSeptember totrack progress onmonthly basisDepartment’sReports on crosscutting issues4 Reports oncross cutting issuesproduced for thePremier’s Office and2 reports submittedto the Legislature2 reports produced andsubmitted to the Legislature onCross Cutting Issues, 1 reportproduced and submitted toDepartment of InfrastructureDevelopmentReporting lineschanged due tonew Provincialleadership andprioritiesTreasury Annual Report 2009/1033

Section ThreeReport on the performance of programmesSub-ProgrammeStrategicObjectiveMeasurableObjectiveIntegrate genderinto strategic plansand MTEF andadequate resourcesto drive the GenderAgendaPerformanceMeasure/IndicatorGender Policyreview documentand mainstreamingPlanAnnual Target2009/10Adoption of thegender policyand phasedimplementation ofthe mainstreamingplanActual AchievementAgainst TargetThe Departmental GenderMainstreaming Report wasproduced and adoptedReasons forDeviations/VariationGender Focal Pointin place in HOD’sOfficeComplianceto legislativerequirementsthrough accessibilityto information.Number of BathoPele Forums2 Batho Pele Forum 2 Batho Pele Forumcoordinated on 23 September2009 and 25 March 2010,and the second forum wascoordinated in integration withGSSC and GFReconfigurationBi- Annual BathoPele progressreports2 Bi- Annual BathoPele progressreports.2 Bi-annual reports producedand submitted to the Office ofthe PremierAnnual Citizen’sReportAnnual Citizen’sReportAnnually in AugThe Annual Citizen’s reportwas produced in August, and10 Braille copies were alsoprinted outCorporateServicesTo provide anintegrated andcomprehensivecommunicationsolution thatpromotesand enhancesrelationships andpartnerships andthe brand identityand image ofGauteng TreasuryA credible andvisible treasury, witha reputable andrecognisable brandAnnual stakeholdermanagementplan for GautengTreasury developed,approved andimplementedBaseline study oncurrent stakeholderperceptions of GTconductedAnnual StakeholderManagementplan developedand approved- Introduce astructured approachto stakeholdermanagement(including socialresponsibilityprogrammes)Stakeholder engagement tookplace with all units in GT and aconsolidated report on findingsand recommendations wascompiled and approved.Calendar of Managementand Unit meetings has beencompiledRoll outcommunicationstrategy in termsof the implementationplan forinternal and externalenvironmentYear-on yearincrease in thebrand perceptionof GTEnhance themarketing andbranding of GTDefine BaselineYear-on yearincrease in thebrand perceptionof GTContinued with marketing andbranding of Gauteng Treasuryin the first 6 months of thefinancial yearWorked closely with GSSCCommunications Unit todevelop an interim corporateidentity for GDF. This wascarried through on variousmarketing collaterals i.e. emailsignature, GDF Memo template,PowerPoint Presentation, Faxtemplate, Route Form, etcDue to thereconfigurationprocess(formationof the GDF)Gauteng Treasurybranding was nolonger relevantand efforts weredirected towardsbranding theGDF34 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveMeasurableObjectivePerformanceMeasure/IndicatorEvidence ofpartnering initiativeswith emphasis onskills and knowledgeexchangeAnnual Target2009/10Evidence ofpartnering initiativeswith emphasis onskills and knowledgeexchangeActual AchievementAgainst TargetExchange Programme withOntario Provincial Governmentstarted in April 2009 and endedin June 2009 (two Treasuryemployees seconded toCanada)Memorandum of understandingwas entered into betweenGauteng Treasury and ServicesSETA on implementation oflearnershipsMedia policy for GautengTreasury developed andapproved and a media plan wasdevelopedMedia alerts, press statementsand speeches prepared andsubmitted to the media (e.g.2009 PERO, MEC’s 100 daysin office, Budget Vote 14, GPGexpenditure and municipal ratesMedia plan and database forGDF developedPrepared press releasesand media alerts for the ff:2010/2011 Provincial Budget,Outcomes of Municipal AuditReports, 2009/10 MunicipalFinancial Performance, SEROand PPP ConferenceAdvertising of the tabling of2010 provincial budget in thelocal newspapers. Placed Livereadson local radio stations:Kaya FM, 702 talk-radio station,and community radio stations.Ensured maximum coverage ofthe 2010/11 Provincial BudgetPrepared and disseminated dailymedia monitoring reportsMemo requesting approvalto appoint the identified staffmembers as members of thecommittee was done andcommittee members wereidentified, terms of referencedrafted – not approved due tomerger of GT and GSSCReasons forDeviations/VariationEnhanced strategicrelationship withmediaMedia plandeveloped,approved andimplementedReview and enhancethe media planFocus for thefirst 6 monthswas on GautengTreasury but thelast 6 monthswas on GDFwhere Treasuryand GSSCCommunicationUnits workedtogetherRecognised associally responsiblepublic sectordepartment in theminds of GautengcitizensSocial responsibilityframeworkimplementedEvidence ofannual review andenhancement ofsocial responsibilityframeworkSocial responsibilityframeworkimplementedDue to thereconfigurationprocess, theimplementationof a socialresponsibilityframework forGauteng Treasurywas placed onholdTreasury Annual Report 2009/1035

Section ThreeReport on the performance of programmesSub-ProgrammeStrategicObjectiveMeasurableObjectiveComplianceto legislativerequirementsthrough accessibilityto informationPerformanceMeasure/IndicatorPrescribed legislativedocumentspublished e.g.Annual report,MTBPS, SERO,PERO, etcAnnual Target2009/10Prescribed legislativedocumentspublished e.g.Annual report,MTBPS, SERO,PERO, etcActual AchievementAgainst TargetAnnual Report for 08/09published and distributed to theLegislature and the Auditor-General. Designed and printedthe Annual Citizen Report.Design and Printed the 2006/7GPG Consolidated FinancialInformation. Uploaded BudgetInformation and SERO on thewebsite and intranetResource Centre wasestablished: Business case wasdeveloped and approved,resource centre officerwas appointed and materialpurchasedParticipated in Library weekwith an exhibitionA trial exercise to establish thelevel and frequency of EBSCOHost usage was undertaken.The purpose is to establish theusage of the research databasefor academic and professionalresearchMaster Systems Plan (MSP) notfinalisedReasons forDeviations/VariationWell resourcedinformation centreIn compliance withthe Promotionof Access toInformation Act, aresource centre willestablishedEvidence ofannual review andenhancement ofResource CentreBusiness case for theestablishment of aResource Centredeveloped andapprovedBegin withimplementationMaster systems plandeveloped for GTaligned provincialIMSP and thestrategy of GTMaster systems plandeveloped approvedand implementedEvidence ofannual review,enhancement andimplementationIT strategy approvedand implementedMaster systems plandeveloped approvedand implementedThedepartmentalMSP wasincluded as partof the provincialIntegrated MSPthat has not beencompletedTo ensure anintegratedcorporateservices functionthat providesstrategic andoperationalsupport for theTreasuryInstitutionalised ITstrategy for GTEvidence ofannual review,enhancement andimplementationIT strategy approvedand implementedIT Strategy was not finalisedbut parts of the strategy werecompleted, namely:• 100% completion ofmigration of users to GautengSingle Domain• Servers configured and fullyfunctional• 100% of users Synchronizingthe ‘My Documents’ folder onthe server and the data beingbacked upThe finalisationof the GautengTreasury ITstrategy wouldhave resulted ina futile exercisedue to thereconfigurationprocess. A GDFIT strategy willbe developed inthe new financialyear• Shared folders created forUnits and the data beingbacked up• Daily, Weekly and MonthlyBack up done on the serversGT Helpdesk introduced andoperational and Helpdesk calllogging procedure approved36 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveMeasurableObjectiveInstitutionalised ITstrategy for GTEnsurestandardisationof applicationsto support GTobjectivesPerformanceMeasure/IndicatorIT asset strategyimplementedEvidence ofannual review,enhancement andimplementationAnnual Target2009/10IT asset strategyimplementedReview, enhance ITasset strategyActual AchievementAgainst TargetThe IT asset strategy was notfinalised with parts of thestrategy completed; i.e Laptop,Desktop and Peripherals policywas developed, approved andimplementedReasons forDeviations/VariationThereconfigurationof the GDFand mergingof Treasuryand GSSCrendered furtherdevelopmentwork on theAsset StrategyredundantInstitutionalisationof the IT SteeringCommitteeEvidence ofannual review andenhancement ofthe IT SteeringCommitteeInstitutionalisationof the IT SteeringCommitteeReview and enhancethe IT SteeringCommitteeIT steering Committee wasnot established. Terms ofreference for the formation ofthe Steering Committee were,however, developedThereconfigurationof the GDFand merging ofTreasury andGSSC renderedthis processesredundant sinceGDF must haveone SteeringCommittee afterthe configurationis completed.The TreasuryIT unit activelyparticipated inthe IT workstreamas partof the changemanagementprocessOptimisation of GTbusiness processesStatus in theimplementationof the businessmapping processand automationEvidence ofannual review,enhancement andimplementationConcept documentfor optimisation ofbusiness processapprovedImplement thebusiness mappingprocess andautomation in aphased approachNot Finalised. Parts ofoptimisation of businessprocesses were implemented(i.e. Employee Self Servicephases one and two)Not all aspectswere addressedas planneddue to thereconfigurationof the GDF.Further roll-outwill be done inthe new financialyearFully capacitatedstructure with therequisite skills, ableto support the GTmandateCapacitation ofthe structure withTreasury skills90% posts filled(10% Vacancy Rate)Continuouscapacitation of thestructure throughattraction andretention of keyGauteng Treasuryskills90% posts filledWorkplace Skills Planwas compiled. Businessadministration learnershipsfor 18:1 (internal employees)implemented.Internship programme for09/10 implementedBursaries for the 2010 academicyear were considered andapprovedReason fordeviation of7% is due toa moratoriumthat was acedon the fillingof positions inGauteng Treasurydue to thereconfigurationprocess.83% posts filled with a 17%vacancy rateTreasury Annual Report 2009/1037

Section ThreeReport on the performance of programmesSub-ProgrammeStrategicObjectiveMeasurableObjectiveHR strategy alignedto the GT strategy,mandate and labourlegislationPerformanceMeasure/IndicatorApproved strategyreviewed andenhanced in linewith new 5 yearstrategic planRevised strategyimplementedEvidence ofannual review,enhancement andimplementationAnnual Target2009/10Review approvedstrategy andenhance in line withnew 5 year tacticalplanImplement therevised strategyActual AchievementAgainst TargetThe Gauteng Treasury HRstrategy was approved andrelevant until 31 March 2010.An implementation plan wascompiled and submitted toDPSAReasons forDeviations/VariationThe HR strategywas not revieweddue to thereconfigurationprocess andsubsequentmerging ofthe GSSCand GautengTreasury into onedepartment. TheGDF HR plan isbeing developedThe configurationof the GDF(merging ofTreasury andGSSC) renderedthis projectredundant since anew set of valueswas determinedEmbedded GTculture and valuesStrategy toembed the valuesand culture ofGT developed,approved andimplementedEvidence of annualprogrammedeveloped tore-enforce the GTvaluesIntegrated employeehealth andwellness strategyimplementedEvidence ofannual review,enhancement andimplementation ofstrategyDevelop, approveand implement astrategy to embedthe values andculture of GTProject started but notcompleted. During the secondquarter, a value survey wasconducted and a value strategyreport was submittedIntegrated EmployeeHealth and WellnessstrategyIntegrated employeehealth andwellness strategyimplementedThe following elements ofthe EWP strategy wereimplemented: men’s health,women’s health, gendermainstreaming, awarenesscampaign on disability,relationship presentations,information sessions on HIVtreatment & Prophylaxis,Condoms and femidomsdistributed on a monthly basis,walk for Breast Cancer incommemoration of CancerAwareness month, ICASEWP awareness, counsellingsessions and formal referralconducted on a monthly basis,implementation of activitiesrelating to 16 days of activismof no violence against womenand children & commemorationof World Aids Day, includingVCT, Wellness Indaba, HealthScreening, informationbrochures/pamphlets on HIV& AIDS, Financial Fitness andmanaging disclosureOutreach programme aboutsexual health at Ikusasa HighSchoolHIV and AIDS policy approvede-Care launched38 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveMeasurableObjectiveIntegrated Securitystrategy that ensuresa holistic approachto managing securityrisksPerformanceMeasure/IndicatorIntegrated securitystrategy approvedand implementedEvidence ofannual review,enhancement andimplementationAnnual Target2009/10Integrated securitystrategy approvedand implementedActual AchievementAgainst TargetTheft and loss proceduresapprovedHealth and Safety committeeestablished and OHS PolicyapprovedSecurity Clearance processfor all employees in GautengTreasury in conjunction withNIAReasons forDeviations/VariationAccess card procedureapproved and implementedSecurity procedures developedFirst Aid and fire fightingtraining implementedFacilitiesmanagementstrategy to ensureoptimum utilisationof limited physicalspaceFacilitiesmanagementdeveloped,approved andimplementedEvidence ofannual review,enhancement andimplementationFacilitiesmanagementstrategy developed,approved andimplementedTransport Policy approvedFleet Management proceduresdeveloped and implementedThe configurationof the GDF(merging ofTreasury andGSSC) renderedthe finalisationof a GautengTreasury facilitymanagementstrategyredundantDocumentmanagementstrategy aligned tomarket best practiceDocumentmanagementstrategy and policiesimplementedEvidence ofannual review,enhancement andimplementationDocumentmanagementstrategy and policiesimplementedDocument managementstrategy and policy developedand approvedFiling plan was developed andapproved by National ArchivesFullimplementationwill be doneas part of thebroader GDFdocumentmanagementsystemEvidencedenhancement in theperformance of staffEvidencedenhancement in theperformance of staffAll staff have signedPerformanceagreements,aligned to theAdministrationstrategyImplementationof enhancedPerformanceManagementprocess andpracticesPerformance agreements signedby all staffLevels 1 – 12: 92% signedperformance contractsSMS: 83% signed performancecontractsThe 8%difference forstaff on levels1-12 and 17%for SMS is due tothe appointment/promotion ofstaffTreasury Annual Report 2009/1039

Section ThreeReport on the performance of programmesSub-ProgrammeCFO’s OfficeStrategicObjectiveTo provideoversight andfinancial and riskmanagementservices to thedepartment forthe achievementof its objectivesand therebyenhancingservice delivery,compliance tothe PFMA andother relevantlegislationMeasurableObjectiveA Financial andRisk Managementpolicy framework,regulations andproceduralframework in placefor TreasuryWell managedfinancial and riskmanagementservices for thedepartmentPerformanceMeasure/IndicatorImplementationof findings andrecommendationsfrom an audit of thepolicy framework,legislation, prescriptsand regulationsDegree ofenhancement ininternal controlsEvidence, throughreporting, ofwell managedFinancial and RiskManagementservices for thedepartmentAnnual Target2009/10An enhancedpolicy framework,prescripts,regulations andproceduresImproved internalcontrolsAccurate financialtransaction supportfor department,internal controls,recording processes,reconciliations,misallocation,funds requests andsurrendersActual AchievementAgainst TargetReviewed all existing policies,no gaps identified. Additionally,modified some policies aspart of merger preparationactivities and submitted themas proposals for the newdepartment47 GAS audit findings raised;39 fully implemented and 8partially implementedAd hoc Risk ManagementTesting conductedMeasures were implemented tomanage and report on internalcontrols, recording processes,reconciliations, misallocation,funds requests and surrenders.Progress has been reported ona monthly basis internally andexternally on a quarterly basisas part of the QPRsReasons forDeviations/VariationAudit support andsundries paymentsDemand plansaligned with budget,priorities and APP`s2009/10 Demand plans werealigned with budget, prioritiesand APP`s. During the financialyear, bilateral with all Units wereheld and aligned demand plansas per new prioritiesAll 2009/10 procurement ofGoods and Services were asper demand plansCreated 2010/2011 Demandplans for Programme 2 and 3subjected to be revised sinceGT merged with GSSCThe acquisition plans arefinalised and reviewedThe demand planfor programme 1was not finaliseddue to themergerAcquisition plansaligned with demandplansEffective paymentsmanagementprocessimplementedPayments management controlspreadsheet implemented as atool to measure and monitorperformance on supplierpayments. As a result, morethan 98% of our paymentswere made within 30 daysA register is kept for allcontracts and monitored onregular basis. Target groups(GEYODI) list of companieswas complied and utilisedro achieve and improveon Provincial PreferentialProcurement targets on BEEcompaniesSound vendorand contractmanagementprocesses40 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveMeasurableObjectivePerformanceMeasure/IndicatorAnnual Target2009/10Annual assetmanagement plandevelopment andimplementationUpdated andaccurate assetregister maintainedreflecting themanagement and lifecycle of departmentassetsActual AchievementAgainst TargetReasons forDeviations/VariationThe asset management plan isdeveloped and implemented byprocuring assets according tothe planAll assets purchased are barcodedand registered on theasset register, complying withthe minimum requirementsof asset register as guided byNational Treasury. Two Assetverifications were performedduring the year to ensureexistence of all assets in theDepartment. All officials tookresponsibility of their assetsby signing the inventory lists.Information Technology (IT)equipment which reachedthe end of the life-span werereplaced accordingly. Allmovements of assets weremonitored using the movementforms in place.Sound inventory andstores managementprocessesThe Unit Improved inventorymanagement due to centralisedstores. Regularly updating theinventory register by recordingall the receipts and stock issued.Two Independent stock countswere performed by the 30 thSeptember 2009 and 31 stMarch 2010 respectively.All asset monthly reconciliationsfor the year between Assetregister and BAS/SAP wereperformedAccess and training onVulindlela was granted to allBusiness Unit Heads. Thisenables them to access financialperformance for their units.BAS access and training wasprovided to office managers forpayment query resolutionAll expenditure for theDepartment has been withinbudget and within cashallocations throughout the yearAll expectations for mainbudget, adjustment budget andsecond adjustment budget weremet. All Units were sufficientlycatered for in terms of financingannual performance planrequirementsSound financialsystem developedand implementedEffectiveexpenditure controlsupportEffective budgetarysupportTreasury Annual Report 2009/1041

Section ThreeReport on the performance of programmesSub-ProgrammeStrategicObjectiveMeasurableObjectivePerformanceMeasure/IndicatorAnnual Target2009/10Implement andenhance the riskframe workStatus inimplementation offraud preventionsystemDeveloped andimplementedBusiness ContinuityPlanActual AchievementAgainst TargetNoneFraud Risk WorkshopconductedFraud Prevention Plandeveloped and implementedFraud Awareness Sessionsconducted,Weekly publications throughGT communication to createawareness on fraud andcorruption and to encouragewhistle blowingBusiness Continuity Plans havebeen updated and testedUnits requiring training oninternal finance processeswere identified and providedwith training. This activity wasreported on in the internalmonthly reports.Training provided to theprocess owners on the use ofthe Barnowl Risk ManagementSystem.Monthly technical reportson actuals generated wereprepared and discussed withBusiness Units throughoutthe year. The outcome wasthe ability to fund all prioritieswithin the Department and thatof Business Unit leaders that arefully aware of the expenditurethat is going through theirbudgets.Risk Profile of each Directoratediscussed with directoratemanagement and staff duringOoFCO bilateral sessions. RiskManagement processes areunderstood by all Departmentalstaff not Senior Managementonly.Monthly expendituresummaries have been preparedthroughout the yearReasons forDeviations/VariationRevision ofEnterprise RiskManagementFramework byNational Treasury(in order toalign it to KingIII and relevantlegislation).Framework wasrolled out at theend of the fourthquarter of thefinancial yearSpecialised trainingrendered to allunits where thereis a need for betterfinancial and riskmanagementincluding supplychain managementReport onspecialised trainingrendered to allunits where thereis a need for betterfinancial and riskmanagementReport onspecialised trainingrendered to allunits where thereis a need for betterfinancial and riskmanagementCredibleFinancial and RiskManagementdata, that enablesinformed decisionmakingMonthly technicalreports on actualsgenerated byOoCFOBi Monthlyinterrogation sessionby the OoCFO withunitsMonthly technicalreports on actualsgenerated byOoCFO forProgrammeManagersBi Monthlyinterrogation sessionby the OoCFO withunits held to unpackthe technical reports(e.g. bilateral)Monthly executivereport for HODenabling strategicdecision makingand reportingon the financialperformance oftreasuryMonthly executivereport for HODon aligned coreperformanceandstrategic issues of allOoCFO functions,enabling strategicdecision makingand reportingon the financialperformance ofTreasury42 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveMeasurableObjectivePerformanceMeasure/IndicatorAnnual Target2009/10Actual AchievementAgainst TargetReasons forDeviations/VariationQuarterlyperformance reportsubmittedQuarterly reporton risk profile ofdepartmentControl Risk Self AssessmentWorkshops conducted for allDirectorates.Risk Registers developed andmonitored.Risk profile of the departmentpresented at the RiskManagement Committee andthe Audit CommitteeAudited AnnualFinancial statementssubmitted by duedate AugustAudited AnnualFinancial statementssubmitted by duedate in AugustThe Unit audited the AnnualFinancial statements submittedduring the second quarterQuarterly reporton monitoring ofvalue for money inaccordance withspecified outcomesMonitor valuefor money inaccordance withspecified outcomesThe Unit continually monitoredvalue for money throughoutthe procurement processes.This was done by thoroughlyscrutinising all quotationssubmitted to procurement andby checking the quality of goodsdelivered to the DepartmentEffective compliancethrough an optimallyfunctioningmonitoring andevaluation andreporting systemQuarterly analysisreport on qualityof the treasuryprogrammequarterly reportsEnhance theimplementationof a monitoringframework for nonfinancialreportingby TreasuryprogrammesActivity shifted to the Strategicmanagement Services(HOD’s office): Monitoringand evaluation within theDepartmentQuarterly analysisreport on qualityof the treasuryprogrammequarterly reportsAttend relevant foraand conduct visits/fact finding missionson financial and riskmanagement toimprove, learn andshare experiences–report on each visitAttend relevant foraand conduct visits/fact finding missionson financial and riskmanagement toimprove, learn andshare experiences–report on each visitFora for assets, budget andprovincial treasuries wereattended Risk ManagementForum attendedProvincial anti-corruptionForum attendedVisits for learningand sharing werenot conductedas there wasa moratoriumon avoidabletravellingImplementedService Levelagreements for allsub-programmesuppliersDevelop andimplementSLA templatesfor all OoCFOsuppliers(GSSC,Other suppliers)Service Level Agreementbetween GSSC and thedepartment developed.Service Standard Frameworkfor OoCFO developed.MEC’s OfficeTo provideeffective strategicand operationalsupport to theMECEnhancedinformation andcommunicationsystemEvidence ofenhancedinformation andcommunicationsystemDevelopedinformation andcommunicationsystemInformation and communicationsystem developed andimplemented( e-mail system, outlookcalendar, manual unit calendar,manual and electronic filingsystem )Treasury Annual Report 2009/1043

Section ThreeReport on the performance of programmesSub-ProgrammeStrategicObjectiveMeasurableObjectiveThe informationgenerated from theinformation systeminforming thepolitical programmeand day to dayactivities of theMEC’s officePerformanceMeasure/IndicatorEvidence thatthe informationgenerated from theinformation systemis informing thepolitical programmeand day to dayactivities of theMEC’s officeQuarterly reportreflecting anstakeholderrelationshipenhancementstrategyAnnual Target2009/10The informationgenerated from theinformation systeminforming thepolitical programmeand day to dayactivities of theMEC’s officeActual AchievementAgainst TargetMEC`s weekly diary orpolitical programme ( Outlookcalendar)Reasons forDeviations/VariationRobustengagements withstakeholdersQuarterly reportreflecting anstakeholderrelationshipenhancementstrategyDocumentation produced forstakeholder engagementsGiven thenature of someof stakeholderengagements, thequarterly reportscould not beproducedOutreachprogramme werenot done onquarterly basisQuarterly reportsreflecting aneffective communityoutreachprogrammeQuarterly reportsreflecting aneffective communityoutreachprogrammeReports on activity orevent based outreachprogramme were produced,e.g. Festive season campaignfocusing on alcohol abuseon 08th December 2009,MEC undertook outreachprogramme to EnnerdaleStation to engage with thecommunity with regards toAlcohol abuse,this included a door to doorto shebeens within Ennerdalas well another programme toSoshanguve and Hammarskraalas part of the Executive Councilback to school campaign inJanuary 2010.Event based media plandeveloped and implemented,e.g. 2009 Budget Speech,Medium Term Budget PolicyStatement and AdjustmentBudget, and 2010 BudgetSpeechTabling of the 2009 Budget,2009 Medium Term BudgetPolicy Statement, 2009Adjustment Budget and 2010BudgetDeveloped andimplementedmedia plan (weeklyCommunicationStrategy )WeeklyCommunicationStrategyDeveloped andimplementedmedia plan (weeklyCommunicationStrategy )Achievements ofthe political officebearer are widelycommunicated -speech writingAchievements ofthe political officebearer are widelycommunicated -speech writingKey projectsrequiring profilingidentifiedStrategies developedand implementedto profile theachievements ofthe political officebearerDeveloped andimplemented M & EsystemM & E systeminstitutionalised andinforming policymanagementM & E systeminstitutionalised andinforming policymanagementCompleted study on the M &E system and recommendationwere not fully implemented.Temporarily the trackingframework document wasdevelop and implementedpending the finalisation of thereconfiguration (and merge ofGauteng Treasury and GautengShared Service Centre)Deviation fromthe idea of M& E system waseffected bythe process ofreconfigurationof GautengGovernmentDepartments44 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveMeasurableObjectiveEffective oversightof the delivery ofpolitical mandatePerformanceMeasure/IndicatorEffective oversightof the delivery ofpolitical mandateAnnual Target2009/10Developed andimplementedoversightframeworkAchievement ofmilestones detailedin the frameworkActual AchievementAgainst TargetWeekly one on ones meetingbetween the MEC and ActingHead of Department andDivisional Heads were held aspart of the oversight platformReasons forDeviations/VariationSpecial projects/programmesimplementedsuccessfully in termsof agreed projecttimelinesQuarterly reporton special projects/programmesimplementedsuccessfully in termsof agreed projecttimelinesQuarterly reporton special projects/programmesimplementedsuccessfully in termsof agreed projecttimelinesMEC has been overseeingthe process of the reviewof the GSSC, and ChangeManagement Processes on themerging of the Treasury GSSCand Gauteng FundDay to daymanagement ofthe parliamentarybusinessDay to daymanagement ofthe parliamentarybusinessDay to daymanagement ofthe parliamentarybusinessAll parliamentary mattersmanaged as per developedoffice tracking system and rulesof the Legislature.An institutionalisedoffice trackingsystem aroundparliamentarymattersAn institutionalisedoffice trackingsystem aroundparliamentarymattersA developedoffice trackingsystem aroundparliamentarymattersTracking system onparliamentary matterdeveloped and implemented asa management tool.Oversight ofdepartments interms of:Oversight ofdepartments interms of:Oversight ofdepartments interms of:2010 Legislative programmewas developed in conjunctionwith Office of the Premier.Legislation (includingsubordinatelegislation).Legislation (includingsubordinatelegislation).Legislation (includingsubordinatelegislation).Tracking of Annual Reportsof the Department will becompleted by September 2010.Submission of theAnnual ReportsQuarterly reportingSubmission of theAnnual ReportsQuarterly reportingSubmission of theAnnual ReportsQuarterly reportingThe submissions of thedepartmental 1st, 2nd, 3rdand 4th quarter reports in theLegislature were tracked.Enhanced links withLEGISCO processEnhanced links withLEGISCO processEnhanced links withLEGISCO processThe Leader of GovernmentBusiness system was developedand implemented as partof enhanced linked withGovernance and LegislationSubcommittee and ExecutiveCouncil SystemEnhanced linkswith the LegislatureprocessEnhanced linkswith the LegislatureprocessEnhanced linkswith the LegislatureprocessAchieved through ourparticipation in the LegislatureOffice Bearers andProgramming Meetings as wellas continues engagement withthe Legislature Proceeding Unit.Enhanced workingwith PLO`sEnhanced workingwith PLO`sEnhanced workingwith PLO`s2010 Legislative Programmedeveloped in conjunction withthe Premier`s OfficeLegislatureProceedingunit and PrivateOffice ofthe Premierenhancedworking with theParliamentaryLiaison Officers(PLO`s)Treasury Annual Report 2009/1045

Section ThreeReport on the performance of programmesSub-ProgrammeStrategicObjectiveMeasurableObjectiveProcesses andsystems of theMEC's Officedocumented andinstitutionalisedPerformanceMeasure/IndicatorProcesses andsystems of theMEC's Officedocumented andinstitutionalisedAnnual Target2009/10All processes andsystems of theMEC's OfficedocumentedActual AchievementAgainst TargetAll processes and system ofthe office of the MEC aredocument in term of units e.g.administrative, parliamentary,government business, policymonitoring and evaluation,communication and publicqueries.Reasons forDeviations/VariationEffectivemanagement of theMEC's diaryEffectivemanagement of theMEC's diaryEffectivemanagement of theMEC's diaryWeekly MEC`s diary waseffectively managedPROGRAMME 2: Sustainable Resource ManagementSub-ProgrammeEconomicAnalysis andFiscal PolicyStrategicObjectiveTo be knownas a producerof cuttingedge financeand economicsolutions.MeasurableObjectiveCredible and reliablesource of financialand economicinformation (PERO/SERO)PerformanceMeasure/IndicatorNumber ofdistricts with cleansecondary dataAnnual Target2009/10PERO & SEROpublicationActual AchievementAgainst TargetPERO and SERO publishedtimeouslyReasons forDeviations/VariationTo ensurecredible financialand non-financialreportingTimeous,qualitative andaccurate legislatedsubmissions (IYMown revenueanalysis)Regular, crediblereporting fromDepartments andfrom GautengTreasury to NationalTreasuryQuarterly timeous,qualitative andaccurate legislatedsubmissions (IYMown revenueanalysis)Monthly and quarterly updatedinformation provided by Subprogrammeto the DDG’s officefor consolidation.Well functioningfinancialmanagement indepartments andmunicipalitiesQuarterly reportson training andsupport providedQuarterly reportson training andsupport providedQuarterly reports on trainingand support provided were notachieved.No training wasprovided tomunicipalitiesdue to lack of adatabase. Thisis a secondaryresponsibility forthe Unit whoseachievementdepended ondata from LocalGovernmentUnit.Provide inputs tothe pre - benchmarkpresentation to PFEvidence ofinputs to thepre - benchmarkpresentation to PFProvide inputs tothe pre - benchmarkpresentation to PFProvided inputs to the pre -benchmark presentation toPublic Finance.46 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveTo facilitate,advise andsupport thealignment andintegration ofplanning anddelivery in theProvinceMeasurableObjectiveEnsure effectivefunctioning ofrelevant foraPerformanceMeasure/Indicator4 revenue forumsannually2 small-revenuegeneratingdepartment forumsannuallyAccurate minutes ofmeetings reflectingresolutions takenand target dates forimplementationAnnual Target2009/104 revenue forumsannually2 small-revenuegeneratingdepartment forumsannuallyAccurate minutes ofmeetings reflectingresolutions takenand target dates forimplementationActual AchievementAgainst TargetEnsured effective functioningof relevant fora. 4 mainrevenue forums were held and2 small revenue generatingdepartments’ forums werealso held.Reasons forDeviations/VariationTo effectivelymanage thebudgetingprocess for theProvinceProduce revenueanalysis reportProduce socioeconomicanalysisreportProduce theperformance of theProvincial economyreportRevenue analysisreport producedSocio-economicanalysis reportproducedPerformance of theProvincial economyreport producedProduce revenueanalysis reportProduce socioeconomicanalysisreportProduce theperformance of theProvincial economyreport4 comprehensive revenuereports were produced. Socio-Economic analysis submittedto Budget Managementfor inclusion in the BudgetStatement 1The analysis wasnot includedin the BudgetStatementpublication dueto formattingproblems.To manage andoversee theimplementationof strategicfinancingsolutionsAnnual researchreport onalternative sourcesof revenueResearch report onalternative sourcesof revenueCompleted initialresearch onalternative revenuegenerating sourcesin the provinceResearch report on alternativesources of revenue wasprepared and presented at theBudget Lekgotla.To institutionalisetools to informthe constraints,growthopportunitiesand allocationprocessesAnnual ProvincialEconomic ReviewcompletedAnnual ProvincialEconomic ReviewcompletedAnnual ProvincialEconomic ReviewpublishedAnnual PERO publishedA reservoirof economicinformationMonthly Newsletter& QuarterlyBulletinsWeekly Newsletter& QuarterlyBulletins2 Workshopsand other adhocrequests4 Quarterly Bulletinssuccessfully published45 Weekly newsletter posted2 Workshops (PERO & SERO)successfully hostedAnnual MediumTerm BudgetPolicy StatementcompletedAnnual MediumTerm BudgetPolicy StatementcompletedAnnual MediumTerm BudgetPolicy StatementcompletedThe 2009 MTBPS waspublished and tabled at theProvincial Legislature.EconometricModelling & ImpactAnalysis Reportsusing CGE, SAMNumber ofsimulation reportscompleted2 simulation reportscompletedSocial AccountingMatrix will be usedas one of the toolsfor impact studiestogether with CGEmodel1 simulation report completedusing the provincial CGE modelTreasury Annual Report 2009/1047

Section ThreeReport on the performance of programmesSub-ProgrammeStrategicObjectiveMeasurableObjectiveAnnual SocialEconomic Reviewand OutlookcompletedPerformanceMeasure/IndicatorAnnual SocialEconomic Reviewand OutlookcompletedAnnual Target2009/10Annual SocialEconomic Reviewand OutlookcompletedActual AchievementAgainst TargetAnnual Socio-Economic Reviewand Outlook (SERO) werepublishedReasons forDeviations/VariationCredible revenueprojectionsCredible revenueprojectionssubmittedAnnual assessmentreport on crediblerevenue projectionsCredible revenueprojectionssubmittedAnnual assessmentreport on crediblerevenue projectionsCredible revenue projectionssubmitted for the 2010/11estimates of expenditure.No report oncredible revenueprojectionswas finaliseddue to delays inimplementingthe revenueprojectionsmodel. NationalTreasury hadcapacity problemsand deferredimplementationto 2010/11Tariffs reviewed asper legislationReview tariffs as perlegislation2 tariffs reviewrequests approved2 tariff reviews for Departmentof Transport completed.Debt managementreport developedDebt managementreport developedDebt managementreport developedDebt management reportdevelopedUndertake nationalgovt and FFCengagements onequitable allocationof the equitableshareContribution to theDORA and the FFCreviewsUndertake nationalgovt and FFCengagements onequitable allocationof the equitableshareContributions in the form ofdetailed comments were madewith regards to the Divisionof revenue Bill/Act and theProvincial Equitable Share toNational Treasury and theFinancial and Fiscal CommissionrespectivelyBudgetManagementUnitTo be knownas a producerof cuttingedge financeand economicsolutions.Credible budgetdata availableEvidence of accurateprovincial budgetdata baseQuarterly reporton monitoringand evaluation offunctionality andeffectiveness of thesystemAccurate provincialbudget DatabaseestablishedProvincial Budget Databasedevelopment, user testing,piloting and informationuploadingLess effectivedirect linkbetween theDatabase andBasic AccountingSystemTimeous andaccurate informationavailable from SRMMonthly, quarterlyupdated informationavailable from SubprogrammeMonthly, quarterlyupdated informationavailable from SubprogrammeSubmission of monthly andquarterly reports as perlegislation48 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveTo ensurecredible financialand non-financialreportingMeasurableObjectiveEnhancedsound financialmanagement bycomplying with thePFMAPerformanceMeasure/IndicatorTimeous,qualitative andaccurate legislatedsubmissions (S32 ofPFMA, QPR, APP,In- Year Monitoring,Main and adjustmentbudget, ProvincialGazette in terms ofDoRA, reporting onprovincial gazette)from departmentsand to NT (monthly,quarterly andannual)Annual Target2009/10Timeous,qualitative andaccurate legislatedsubmissions (S32 ofPFMA, QPR, APP,In- Year Monitoring,Main and adjustmentbudget, ProvincialGazette in terms ofDoRA, reporting onprovincial gazette)from departmentsand to NT (monthly,quarterly andannual)Actual AchievementAgainst TargetTimeous submission of thefollowing provincial reports asper reporting requirements:- 4 PFMA Section 32 QuarterlyReports to National Treasuryduring 2009/10- 12 Monthly In-YearMonitoring Report toNational Treasury- Pre-Audit and Post Audit2008/09 In-Year MonitoringReports to National Treasury- 2 Quarterly Financial Reportsto Gauteng ProvincialLegislature- 2008/09 Validated AnnualOutput Performance Reportsto National Treasury- 4 Quarterly PerformanceReports to National Treasury- Provincial Gazette in terms of2009 Division of Revenue Act(DoRA) that reflects fundstransfer to schools and Healthinstitutions.Budget-related support andadvice provided to departmentsthrough meetings , emails andtelephoneReasons forDeviations/VariationWell functioningfinancialmanagement indepartments andmunicipalitiesProvided relevantBM reports tosupport PFQuarterly reportson training andsupport providedQuarterly reportson training andsupport providedTimeous andaccurate IYM andQPRTimeous andaccurate IYM andQPRSecond and third quarterLegislature financial reportssubmitted to Public Financeunit as input to the ProvincialQuarterly Reports to theGauteng Provincial LegislatureTabling of reconfigured 2009/10main budget based on thesplit of the Department ofPublic Transport, Roads andWorks into the Department ofRoads and Transport and theDepartment of InfrastructureDevelopment on 23 June 2009Presentation of outcomes ofthe MTEC meetings to the PBCfor decision making regardingprovincial resource allocation inOctober 2009Tabling of the 2009/10Adjustment Budget on 17November 2009Tabling of 2009/10 AdjustmentBudget and 2010 MTEF Budgeton 2 March 2010Allocative efficiencyand the credibilityof annual budgetsenhancedMTEF andadjustment budgetthat is informedby governmentprioritiesMTEC reportproducedTabling of an MTEFand adjustmentbudget that isinformed bygovernmentprioritiesProduce the MTECreport to informExecutive decisionmakingAdoption of newstrategies of theGPG RenewalProgrammechanged thestrategy ofprovincial budgetcommittees(includingnon-productionMTEC report toinform Executivedecision makingwithin the unit)Treasury Annual Report 2009/1049

Section ThreeReport on the performance of programmesSub-ProgrammeStrategicObjectiveMeasurableObjectiveProvide thebenchmark databaseto NT and PF tosupport analysisof the budgetbenchmarkPerformanceMeasure/IndicatorEvidence ofinputs to thepre and finalisedpresentation to PFEvidence ofbenchmark databaseprovided to NTand PFAnnual Target2009/10Provide inputs tothe pre and finalisedpresentation to PFProvide thebenchmark databaseto NT and PFActual AchievementAgainst TargetSubmission of unit’s inputto department’s benchmarkconsolidated presentationSubmission of the benchmarkdatabase to National Treasuryand Public Finance unitParticipation in thedepartment’s preparatorysession and in the NationalTreasury benchmark session inJanuary 2010Adoption of new approach inexisting forums based on thenew GPG Renewal Programmethat promotes activism anddevelopmental stateImplementation of adoptedreforms in provincial documentsand relevant official submissionsto the ExecutiveReasons forDeviations/VariationTo facilitate,advise andsupport thealignment andintegration ofplanning anddelivery in theProvinceTo communicatethe budgetrelated matters tostakeholdersEffective functioningof relevant forumsAccurate minutes ofmeetings reflectingresolutions takenand target dates forimplementationEnsure effectivefunctioning ofrelevant forums byreviewing existingforums and identifyopportunities forenhancement atProvincial level e.g.Budget Makgotlaand Budget ForumAccurate minutes ofmeetings reflectingresolutions takenand target dates forimplementationTo ensure historicalaccurate , credibleand timeous budgetdata through thedata warehouseContent analysisof the budgetstatement 2 & 3 forthe main budgetconductedMonitor theDepartment’s APPtargets to ensurethat they are linkedto the allocationsand strategicobjectivesProvide relevantsupport to enhancePPP decisionmaking (e.g.budget statement3, determine theresource availabilityto fund PPPprojects)Adopted reformswere effectedin the formatsof provincialdocuments,without beingspecificallyrecorded inmeetings minutesTo ensure historicalaccurate, credibleand timeous budgetdata through thedata warehouseEnsure a crediblemain budgetAccurate, credibleand timeous budgetdata availableCapture of historical dataup to 2008/09 in the DataWarehouse SystemTo effectivelymanage thebudgetingprocess for theProvinceContent analysisof the budgetstatement 2 & 3 forthe main budgetconductedMonitor theDepartment’s APPtargets to ensurethat they are linkedto the allocationsand strategicobjectivesSubmission ofdepartments’ draftBudget Statement3’s to Public Financeunit for assessmentand finalisation.Provision/confirmation ofinformation relatingto infrastructureallocations to PublicFinance unitThe 2010 MTEF budgetcontent analysis took place priorto the printing of the budget fortabling in March 2010Monitored finalisation of the2010 MTEF budget to ensurethat they contain prescribedperformance targets set forprovincial departmentsTo manage andoversee theimplementationof strategicfinancingsolutionsProvide relevantsupport to enhancePPP decision makingSubmission of departments’draft Budget Statement 3’sto Public Finance unit forassessment and finalisation.Provision/ confirmationof information relating toinfrastructure allocations toPublic Finance unit50 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveTo institutionalisetools to informthe constraints,growthopportunitiesand allocationprocessesMeasurableObjectiveTo provide relevantBM input toMTBPS e.g. BudgetallocationMedium to longterm forecastingPerformanceMeasure/IndicatorEvidence of relevantBM input toMTBPS e.g. BudgetallocationPopulate andimplementMTEF modellingand forecastingframeworkAnnual Target2009/10To provide relevantBM input toMTBPS e.g. BudgetallocationPopulate andimplementMTEF modellingand forecastingframeworkActual AchievementAgainst TargetProvision of departments’updated revenue MTEF budgetas an input to MTBPSFinalisation of terms ofreference for the systemdevelopmentReasons forDeviations/VariationDuring thesecond quarter,the developmentof the systemwas deferreduntil the processof streamliningelectronicsystemsdevelopment isfinalisedPublic FinanceUnitTo ensurecredible financialand non-financialreportingCompliance to theDivision of RevenueAct and the PFMANumber of sectoralreports completedand presented todepartments andone consolidatedreport to legislature15 sectoral reportscompleted andpresented todepartments andone consolidatedreport to legislature15 individual sectoral reportscompleted. GPG wide reportsprepared and presentedto departments and oneconsolidated report toLegislature and EXCOHowever,no invitationreceived fromNCOP.Infrastructure andconditional grantsreports submittedto National Councilof Provinces(NCOP)Submitted Cabinetmemorandum toExecutive CouncilInfrastructureReporting Modelsubmitted toNational TreasuryInfrastructure andconditional grantsreports submittedto National Councilof Provinces(NCOP)Submitted Cabinetmemorandum toExecutive CouncilInfrastructureReporting Modelsubmitted toNational TreasuryPrepared expenditure reportsfor conditional grants. 2010/11conditional grant business plansappraised and forwarded toNational Treasury.Four quarterly expenditurereports submitted to EXCOand received feedbackInfrastructure Reporting Modelsubmitted to National Treasuryand received all infrastructureinstalments from NationalTreasuryReport on theperformance ofconditional grants incompliance to theconditional grantframeworkReport on theperformance ofconditional grants incompliance to theconditional grantframeworkPrepared expenditure reportsfor conditional grants andsubmitted to National Treasury.Well functioningfinancialmanagement indepartments andmunicipalitiesQuarterly reportson training andsupport providedQuarterly reportson training andsupport providedThe unit also provided trainingto departments to aid in theimprovement of credibility ofthe IRM, with specific focus onthe use of Pivot Analysis Tooland Trend Analysis Tool (TAT)The unit continued to providementoring sessions to relevantsector counterparts in allrelevant departments on IRMand other financial managementissuesMonitoring ofprogress oninfrastructureprovision to ensureenhanced Value formoneyQuarterlyreports on theinfrastructure sitevisits submitted toSenior Management4 quarterly reportson infrastructuresite visits submittedto SeniorManagementConducted infrastructure sitevisits for all sector departmentsand National TreasuryTreasury Annual Report 2009/1051

Section ThreeReport on the performance of programmesSub-ProgrammeStrategicObjectiveMeasurableObjectiveNational andprovincial prioritiesare optimally fundedPerformanceMeasure/IndicatorBudget report toMTECBudget benchmarkreportAnalysis benchmarktool enhancedReport on GPGstaff expenditureAnnual Target2009/10Produce the budgetreport to MTECProduce budgetbenchmark reportReview andenhance the analysisbenchmark toolProduce reporton GPG staffexpenditureActual AchievementAgainst TargetPrepared the presentation forthe 2010 Budget BenchmarkExercise at National TreasuryBenchmark exercise documentsprepared and presented atNational Treasury in January2010.Reasons forDeviations/VariationCredible inputsfor the adjustmentbudget processto ensure annualupdating of the fiscalpolicy frameworkAdjustment bookproducedIdentifyopportunities forenhancements toadjustment book(or prepare relevantchapter for MTBPSon expenditure andsubmit to FPEA)Adjustment bookproducedSubmitrecommendationsi.r.o adjustmentbudget on roll over’s,additional fundingfor unforeseenand unavoidableexpenditureInputs relating to adjustmentbudget where given to BudgetManagement unit and preparedexpenditure chapter for theMedium Term Budget PolicyStatementContent analysisof the adjustmentestimate chaptersContent analysisof the adjustmentestimate chaptersPrevent/ Avoidunauthorisedexpenditure byDepartmentsTo facilitate,advise andsupport thealignment andintegration ofplanning anddelivery in theProvinceAccelerated deliveryof infrastructureMonitor andco-ordinateinfrastructuredeliveryInfrastructureplans producedand coordinatedappropriatelyEvidence ofeffective functioningof relevant forumse.g. PPMC &PTC including allinfrastructuredepartmentsAccurate minutes ofmeetings reflectingresolutions takenand target dates forimplementationEnsureinfrastructureplans are producedand coordinatedappropriatelyEvidence ofeffective functioningof relevant forumse.g. PPMC &PTC including allinfrastructuredepartmentsAccurate minutes ofmeetings reflectingresolutions takenand target dates forimplementationFinalised infrastructure plans forall departmentsThe Executive InfrastructureManagement Committee(EIMC), made up of MECSof infrastructure deliverydepartments and GDF andthe head of the PlanningCommission, togetherwith heads of respectivedepartments held its inauguralmeeting, followed by that ofthe Provincial InfrastructureManagement Committee(PIMC), made up of headsof department and seniormanagement directly involvedin infrastructure delivery wereestablished.Minutes of all the infrastructuremanagement structurespresented and adopted52 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveTo effectivelymanage thebudgetingprocess for theProvinceMeasurableObjectiveEnsure a crediblemain budgetPerformanceMeasure/IndicatorContent analysisof the budgetstatement 2 & 3 forthe main budgetconductedMonitor theDepartment’s APPtargets to ensurethat they are linkedto the allocationsand strategicobjectivesAnnual Target2009/10Content analysisof the budgetstatement 2 & 3 forthe main budgetconductedMonitor theDepartment’s APPtargets to ensurethat they are linkedto the allocationsand strategicobjectivesActual AchievementAgainst TargetFinalised the 2010/11 forestimates of capital expenditureAlignment of budgets, targetsand priorities undertaken aspart of the Benchmark ExerciseReasons forDeviations/VariationEffective andefficient use ofresourcesFramework on costcutting and effectiveuse of resourcescompleteAnnual reporton cost cuttingoutcomesFramework on costcutting and effectiveuse of resourcesAnnual reporton cost cuttingoutcomesCost containment measuresframework finalised andpresented to HOD Forum andEXCOQuarterly reporton monitoringand complianceof reprioritisationon the budgetadjustment processConduct a reviewof expenditureand existingcommitments andcontracts in line withreprioritisation ofprogrammes (Aug09)Ensure thereprioritisation ofallocations in linewith priorities andimpact (BudgetLekgotla, July 09)A structured and detailedmid-year expenditure reviewwas conducted of budgets andexpenditure and presented areport to EXCOReview of ineffectiveprogrammes that was preparedfor discussion at the BudgetLekgotla, entailing a high-leveldiscussion of the possiblere-direction of resources topriority areasTo manage andoversee theimplementationof strategicfinancingsolutionsInform governmentpolicy and resourceallocationResearch reports onalternative sourcesof revenueProduce aresearch report onalternative fundingfor infrastructureProduce aresearch reporton alternativefunding for socialinfrastructureReport on alternative fundingsources was completed by FiscalPolicy during the first quarter ofthe 2009/10 financial yearPreliminary research report hasbeen completed excluding theinternational experienceThe Unit couldn’tproduce thereport to avoidduplicationProduce a researchreport on the Nettbenefits of hostingmajor sports eventsTo institutionalisetools to informthe constraints,growthopportunitiesand allocationprocessesRelevant PF inputsprovided toMTEF forecastingframeworkEvidence of relevantPF inputs providedto MTEF forecastingframeworkRelevant PF inputsprovided toMTEF forecastingframeworkNot doneNo inputsrequested for theMTEF modelTreasury Annual Report 2009/1053

Section ThreeReport on the performance of programmesSub-ProgrammePublic PrivatePartnershipsStrategicObjectiveTo ensurecredible financialand non financialreportingMeasurableObjectiveComplianceto legislativerequirements forPPPPerformanceMeasure/IndicatorComplianceto legislativerequirements forPPPAnnual Target2009/10Complianceto legislativerequirements forPPPActual AchievementAgainst TargetThe unit played an active roleby way of participation in thesteering committee meetingsand reported on the adherenceto the legislative frameworkpertaining to registered PPPprojects.Some examples of successfulremediation to ensurecompliance to the regulatoryframework was find in thefollowing projects:Finalising and regulating theRoodeplaat Dam TourismHub and Magalies & LanseriaOrientation Centres atFeasibility Study stage in linewith Treasury Regulation 16,confirming the affordability ofthe project.CoJ Altenative WasteTreatment Project: the feasibilityreport has been completedand the city has appointednew Transaction Advisors forthe Procurement phase of theproject to ensure compliancethe regulatory frameworksupported by credibleinformationCoT HQ accommodation:the project is at procurementstage. RFP responsesevaluated and waiting approvalfor appointment of thepreferred bidder. Processesare complimented by the setregulatory frameworkProvided input and commentson Plato Project in line with TR16 to the PFMA in order toensure compliance with PFMAand procurement regulations.Provided input on financial refinancingsolutions of Maropengto ensure the continuation andsustainability of the project.Aspects of risk managementand transfer were alsoregulated.Reasons forDeviations/VariationSignificant input was givenon Social projects such asthe Schools and Chris HaniBaragwaneth Hospital (CHBH)specifically to the needs, scopingand affordability of the project,specifically in line with therelevant regulatory framework54 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveMeasurableObjectiveWell functioningfinancialmanagement indepartments andmunicipalitiesPerformanceMeasure/IndicatorQuarterly reportson training andsupport providedAnnual Target2009/10Quarterly reportson training andsupport providedActual AchievementAgainst TargetA Municipal PPP conferencewas held on the 18/02/2010with presenters from SAICE;CSIR; SAICA; CoJ and NT toshare experience in respectivefields aimed at enhancingproject conception andinfrastructure implementation.A collaborative approach withPublic Finance – concluding adue diligence on GT-Fleet, and aproposal for alternative fundingas well as procurement solutionwere identifiedOptions on the fundingand structure for theNelson Mandela Children’sHospital were completed forimplementation.Proposals for funding on anew build for the GautengCity Region Academy werepresented in documentformat. The project is currentlyidentified and registered asa possible PPP initiative forEducation.Completed a need as well asfunding option and bundlingapproach for the mostimportant schools in Educationwere identified.Collaborative engagementsbetween the PPP Unit andGFPO exploring fundingoptions and project appraisalsupport initiatives.Significant input was made tothe MTEC hearings to supportInfrastructure developmentReasons forDeviations/VariationStrategic inputprovided to MTECand Socio economicreportDocumentedrecommendationsfor alternativefinancing solutionsto budget requestsEngagement withIGR and PF andFPEA to determinePPP role and inputrequiredRecommendationsfor alternativefinancing solutionsto budget requestsTreasury Annual Report 2009/1055

Section ThreeReport on the performance of programmesSub-ProgrammeStrategicObjectiveTo facilitate,advise andsupport thealignment andintegration ofplanning anddelivery in theProvinceMeasurableObjectiveGuidance providedto infrastructureinitiatives findingthe best technical,financial and legaloption to procure aprojectPerformanceMeasure/IndicatorQuarterly reportreflecting guidanceprovided toinfrastructureinitiatives findingthe best technical,financial and legaloption to procure aprojectAnnual Target2009/10Quarterly reportreflecting guidanceprovided toinfrastructureinitiatives findingthe best technical,financial and legaloption to procure aprojectActual AchievementAgainst TargetProposals and guidance tothe Ekurhuleni MM to discussthe possibility of having a PPPproject in water demandmanagement and its funding.Input on various Projectinitiatives to find the bestfunding and procurementsolution – recommendation onfinancial and technical solutionfor Folateng Hospital, specificallypertaining to the possibilities ofprivate patient revenue weredocumentedDiscussions on Roads projectfor Transport as well as inputto a presentation proposalto senior management werecompleted.Input on funding, structureand procurement solutionfor Nelson Mandela Hospital,Options Analysis andrecommendation followingcompletion of feasibility study.Deliberations on the needs andconducted a report on the bestbatching and funding analysis for30 schools in the Departmentof Education.An arrangement to improvethe scope, funding and credibleinformation was taken on theCHB hospital.Participated at the GautengMunicipal CFO’s Forum.Participated at the IDPTechnical Steering Committeemeeting. Convened a discussionwith DLGH MIG unit to discussthe status of Sedibeng RegionalSanitation Scheme as a potentialPPP project.Reasons forDeviations/VariationLocal Governmentawareness of PPPopportunitiesParticipation inquarterly CFOF's- to provideguidance on PPPopportunitiesParticipation inquarterly CFOF's- to provideguidance on PPPopportunitiesThe unit participated in theMFMA Section 72 Engagementsin collaboration with LGRMUnit, at Mogale City LM,Emfuleni LM and MerafongCity LM.56 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveTo manage andoversee theimplementationof strategicfinancingsolutionsMeasurableObjectiveDiversified portfolioof PPP's to ensurean equitable spreadof initiativesPerformanceMeasure/IndicatorYear -on yearincrease indiversification anddeal flowAnnual Target2009/10Baseline establishedDiversified portfolioof PPP’s (Increasedeal flow of PPP’sfor projects)Increase deal flowOne new municipalPPP projectedinitiated, registered,appraised andregulated interms of TreasuryRegulations.Actual AchievementAgainst TargetNew provincial projectsregistration applications withNational Treasury (GreenBuilding at Innovation Hub PPPand Automotive Supplier Parkat Rosslyn)Registered and re-confirmedcontinuation of PPP SchoolsProjectReasons forDeviations/VariationProvide reportson PPP revenueinitiatives to supportthe research onalternative sourcesof revenueAnnual reporton PPP revenueinitiativesAnnual reporton PPP revenueinitiativesPaper on Alternative FinancingMechanisms to financeinfrastructure was drafted incollaboration with FPEA. Thepaper was presented at budgetLekgotla in July 2009.To institutionalisetools to informthe constraints,growthopportunitiesand allocationprocessesProvide PPP relatedinputs to supportthe publication ofMTBPSEvidence of inputprovidedProvide PPP relatedinputs to MTBPSNot achievedChallenges:MTBPSframeworkrequired projectsalready underconstruction assuch not coveredas currentprojects have notreached the stageyet.Provide informationon PPP feasibilitystudy EconometricModelling & ImpactAnalysis ReportsEvidence ofprovision ofinformation onPPP feasibilitystudy EconometricModelling & ImpactAnalysis ReportsProvide informationon PPP feasibilitystudy EconometricModelling & ImpactAnalysis ReportsNot achievedChallenges:Econometricmodelling (CGEmodelling) stillneed morerefinement inorder to carryout impactanalysis on suchreports.Provide informationfor financialcommitments onPPP projects toenhance MTEFmodel with relevantPPP informationProvide informationfor financialcommitments onPPP projectsProvide informationfor financialcommitments onPPP projects toenhance MTEFmodel with relevantPPP informationNo new commitments otherthan the CHBH PPP alreadycaptured on the MTEFallocations, expected to remainin force more so that theproject is approved to proceedunder a new model.Treasury Annual Report 2009/1057

Section ThreeReport on the performance of programmesSub-ProgrammeLocalGovernmentResourceManagementand IGRStrategicObjectiveTo be knownas a producerof cuttingedge financeand economicsolutions.MeasurableObjectiveA Gauteng LocalGovernmentConsolidatedbudget and financialperformancedatabase (Section71)Regular, crediblereporting fromMunicipalities toGauteng Treasuryand from GT toNational TreasuryPerformanceMeasure/IndicatorEvidence of accurateprovincial budgetdatabaseAnnual Target2009/10Framework forGauteng LGFinance DatabaseestablishedActual AchievementAgainst TargetFramework established and 4quarterly reports on municipalfinancial performance (MFMASection 71) publishedReasons forDeviations/VariationTo ensurecredible financialand non-financialreportingTimeous,qualitative andaccurate legislatedsubmissionscompletedTimeous,qualitative andaccurate legislatedsubmissions (S8submission ofprimary bankaccounts, S11withdrawalstatements, monthlybudget statement,draft and finalbudget, municipaladjustment budget,MFMA nonfinancialreturns,MFMA-competencyframeworkreturn, Mid yearreview ,Municipalconsolidated report)from municipalitiesto NT (monthly,quarterly andannual)Quarterly reportson training andsupport providedAll monthly, quarterly andannually legislated reports/returns (e.g. municipal primarybank account details, quarterlywithdrawal statements, monthlybudget statements etc) weretimeously prepared andsubmitted to National TreasuryWell functioningfinancialmanagement indepartments andmunicipalitiesQuarterly reportson training andsupport providedReports on the training andsupport provided through theCFO’s Forums as well as othertraining workshops produced.Some of the issues discussedin these workshops includedthe New Budget Formatsand Reporting Regulations,Reporting requirementsproposed changes in terms ofSection 71 of the MFMA as wellas DORA)The CFO Forumin one of thedistricts is notas functional aswe would likeit to be. Notrelevant targetedofficials arealways availableto attend thiscapacity buildinginitiatives.Assess municipalbudgets in line withthe MFMA andrelated regulations.Annually assessmunicipal SDBIP's.Close off report onmunicipal budgetsreflecting spendagainst budgetsubmitted to DDGTesting of budgetin respect of theFunding ComplianceModelClose off reporton municipalbudgets reflectingthat municipalitiesspend against theirprioritiesTesting of the budget in respectof the Funding Compliancedone for the 5 out of the14 municipalities that had toprepare their 2009/10 budgetsusing the new formats. The restof the other municipalities areonly expected to implementthe new formats effective from1 July 2010.58 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveTo facilitate,advise andsupport thealignment andintegration ofplanning anddelivery in theProvinceMeasurableObjectiveFacilitate themunicipal buildenvironment interms of resourceallocation andinter/intra districtalignment.PerformanceMeasure/IndicatorQuarterlyperformance reporton the Municipalbuild environmentproducedAnnual Target2009/10Bi-AnnualPerformanceReport' on theMunicipal buildenvironmentproducedActual AchievementAgainst Target1 Final Draft Report on theMunicipal Built EnvironmentproducedReasons forDeviations/VariationAvailability ofdata still remainsa huge challengeInstitutionalisedmunicipal forums inthe context of theIGR frameworkInstitutionalisedmunicipal forums inthe context of theIGR frameworkAccurate minutes ofmeetings reflectingresolutions takenand target dates forimplementationEnsure effectivefunctioning ofrelevant forumsAccurate minutes ofmeetings reflectingresolutions takenand target dates forimplementation2 out of 3 District CFO Forumsare functioning very effectively.Minutes of the abovementioned forums/meetingswith clear target dates forimplementation are keptThe MetswedingDistrict CFOForum is notfunctioning aseffectively as wewould like haveit function. Weare constantlyengaging theleadership in theregion to addressthis matterExorbitantamountsassociatedwith theimplementationof the projectremains achallengeEnsure themanagement andcustomisation ofLGRM & IGR toolsEvidence ofimplementation ofmunicipal portalConduct needsanalysis on MunicipalPortalDevelop TOR forMunicipal PortalNeed analysis conductedand the project currentlybeing piloted in 4 selectedmunicipalitiesTerms of reference for theproject finalisedTo effectivelymanage thebudgetingprocess for theProvinceTabling of crediblemunicipal main andadjustments budgetAdjustment budgettabledDraft budget fornext year tabledAnnual report onthe taxes and tariffson how they havebeen modelledand the underlyingassumptions for thenext financial yearEnsure the tablingof adjustments andmain budget forlocal governmentEnsure municipaltaxes and tariffsis appropriatelycosted based on themunicipal tariff andtax modelAll 14 municipalities timeouslytabled their adjustments andmain budgetsThe tariff model tool developedand successfully installed on thesystems of the relevant officials.Training on how to operate themodel scheduled for the firstquarter of the new financialyearHand overprocesses ofthe tool by theservice providerdelayed thetraining andtherefore theimplementationof the modelThe researchhad to be donein collaborationwith the DLGHand thereforeits successdepended to agreat deal onthe cooperationof the 2departmentsTo manage andoversee theimplementationof strategicfinancingsolutionsBroadened revenuebase and diversifiedrevenue sourcesEvidence ofresearch onalternative revenuegenerating sourcesin the municipalitiescompletedInitial research onborrowing as analternate fundingsolution completedCompleted initialresearch onalternative revenuegenerating sourcesin the municipalitiesCompleted initialresearch onborrowing as analternate fundingsolutionFinal draft research paperon the alternative revenuegenerating sources completedTreasury Annual Report 2009/1059

Section ThreeReport on the performance of programmesSub-ProgrammeStrategicObjectiveTo institutionalisetools to informthe constraints,growthopportunitiesand allocationprocessesMeasurableObjectiveGauteng LocalGovernmentFinance ReviewPublishedPerformanceMeasure/IndicatorGauteng LocalGovernmentFinance ReviewPublishedAnnual Target2009/10Gauteng LocalGovernmentFinance ReviewPublishedActual AchievementAgainst TargetFinal draft document (GautengLocal Government FinanceReview) produced.Reasons forDeviations/VariationThe success interms of thepublication ofthis documentdepended to agreat deal onthe cooperationof other unitswith GDOF asthey were alsoexpected toprovide inputs.Unfortunately,not all the unitsprovided inputsand even thosethat did provideinputs did sovery late in theprocessQuarterly Reporton conditionalgrants performanceQuarterly Reporton conditionalgrants performanceBi-Annual Report onconditional grantstabled2 reports on the conditionalgrants to municipalitiesproduced and tabled.PROGRAMME 3: Financial GovernanceSub-ProgrammeProgrammeSupportStrategicObjectiveTo render anefficient andco-ordinatedmanagementservice to theprogrammeMeasurableObjectiveA credible andvisible unit withinthe GautengTreasuryPerformanceMeasure/IndicatorQuarterly FinancialGovernancestakeholder survey.Quarterly ServicePerformanceReportAnnual Target2009/10Quarterly FinancialGovernancestakeholder survey.Quarterly ServicePerformanceReportActual AchievementAgainst TargetNoneReasons forDeviations/VariationThere were ChiefDirector actingon the capacity ofDDG for a shortperiodAn implementedpolicy frameworkto guide strategicpartnering initiativesStatus inimplementation ofpolicy frameworkDeveloped policyframework for FGto guide strategicpartnering initiativesNoneThere were ChiefDirector actingon the capacity ofDDG for a shortperiodQuality and timeoussubmissions andreporting by unitto HOD, NationalTreasury andSCOPA / LegislatureQualitative andtimeous submissionsto National Treasuryincluding monthlyand year endclosuresQualitative andtimeous submissionsto National Treasuryincluding monthlyand year endclosuresQuarterly SCOPA reportssend to HOD for review andapproval. SCM contracts aboveR100k reported to NationalTreasury.Documentedunit processes,procedures andsystemsDocumentedunit processes,procedures andsystemsDocumented unitprocesses andsystemsNot implemented despite beingapproved in 2008/0960 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveMeasurableObjectiveAligned subprogrammeplanning, budgeting,performance (M&E)and reportingprocessesPerformanceMeasure/IndicatorAligned subprogrammeplanning, budgeting,performance (M&E)and reportingprocessesAnnual Target2009/10Aligned subprogrammeplanning, budgeting,performance (M&E)and reportingprocessesActual AchievementAgainst Target2009/10 budget aligned to APPand APP aligned to outputs inthe annual reportReasons forDeviations/VariationModern budgetingand controltechniqueseffectivelyimplemented in unitModern budgetingand controltechniqueseffectivelyimplemented in unitModern budgetingand controltechniqueseffectivelyimplemented in unitEvidence, throughreporting, ofspecific policy,process and systemenhancementEvidence, throughreporting, ofspecific policy,process and systemenhancementReview FG policy,processes andsystems and identifyareas requiringenhancement andimplement changesFG policies developed andreviewed and implemented.Treasury complianceand governanceenhancedStatus in thedevelopment andimplementation ofa comprehensiveRisk ManagementStrategy forTreasuryAnnual updatingof Treasury riskmanagementstrategy alignedto those of theProvinceGDF risk developedImplementedService LevelAgreements forall programmesuppliersImplementedService LevelAgreements forall programmesuppliersDevelop SLAtemplates forall programmesuppliers andinternal businessunitsSLA for cash management,systems developed and signedby DepartmentsImplementation, monitored ondaily basis.Monitorimplementation ofSLA’sAccountingServicesTo be a crediblepartner inFinancialManagementpractices andsystemsEnhancedrelationships withpriority stakeholderse.g. SCOPA, AG,GPG BankerEvidence ofenhancedrelationships withpriority stakeholdersDevelopment andimplementationof a stakeholderrelationship calendarfor the unitSCOPA hearings were attendedby FG representatives.The GPG departments wereinvited to the workshop forInterim Financial Statementsduring October in order toassist them for submission.Fully functional andeffective FG forumsQuarterly FGForumsQuarterly FGForumsCFO Forum held in thesequarter on the 9th March 2010Accurate minutes ofmeetings reflectingresolutions takenand target dates forimplementationAccurate minutes ofmeetings reflectingresolutions takenand target dates forimplementationTimeous andaccurate informationavailable from FGTimeous andaccurate informationavailable from FGMonthly andQuarterly updatedinformation availablefrom the UnitQPR & SCOPA reportsTreasury Annual Report 2009/1061

Section ThreeReport on the performance of programmesSub-ProgrammeStrategicObjectiveTo ensureaccounting bestpractices withinthe ProvinceMeasurableObjectiveSupport forenhancedaccounting practicesin municipalitiesPerformanceMeasure/IndicatorNo auditqualifications fornon-compliancewith GRAPstandardsAnnual Target2009/10No auditqualifications fornon-compliancewith GRAPstandardsActual AchievementAgainst TargetThere has been improvementin municipal audit outcomesfor 08/09 financial year. Noneof Gauteng Municipalities gotqualified due to non-complianceto GRAP standards.Assessments were done onMunicipalities’ annual financialstatement and feedbackprovided to municipalleadership. The unit continuedto assist municipalities inaddressing prior year auditfindings. The unit deployed adirector to act as a CFO forKungwini Municipality.Consolidated GPG financialstatements were submitted tothe AG and audited successfully.The consolidated financialstatements were not tabledwithin 6 months as per thePFMAReasons forDeviations/VariationAvailabilityof realisticimplementationplans to addressaudit findingsMonitor and assessmunicipal financialstatementsRealisticimplementationplans to addressaudit findingsSupport forenhancedaccounting practicesin departmentsConsolidated GPGfinancial statementstabled within 6months of year endConsolidated GPGfinancial statementstabled within 6months of year endThe unit hadto wait for theaudited financialsfor departmentsand entities to doconsolidation andthis delayed theprocess.Consolidated reporton audit findings ofAuditor General fordepartments andentitiesBi-annual gapanalysis on FMCMand findingsimplementedConsolidated reporton audit findings ofAG for departmentsand entitiesThe consolidated report wascompleted and discussedpresented to management.Finance functioneffectivenessgap analysis atdepartmentsconductedand findingsimplementedDevelopment andimplementation ofa tool for analysisand interpretationof annual financialstatementsDevelop andimplement a toolfor monitoring theimplementation ofGRAP by entitiesThe FMCM was completedin December 2009. A followup analysis will be conductedin May/June 2010 andfeedback will be provided todepartments.There weredelays incompletion ofthe FMCM dueto departmentsfailing to meetthe set deadlines.Status inimplementation ofa tool for analysisand interpretationof annual financialstatementsStatus inimplementation of atool for monitoringthe implementationof GRAP by entitiesThe tool was developed andpiloted on 3 big departments.Analysis of AG findingshave be done on all entitiesduring the year in order toidentify weaknesses relatingto accounting standards andsupport for implementation willbe prioritised to those entities.A GRAP compliance checklisthas been developed to assessthe entities’ implementation ofGRAP.Conducted AM postimplementation review withNT and presented summary offindings to the CFO Forum.Enhanced AssetManagementsystems andprocesses within theprovinceEnhancedroadmap for AssetManagement indepartments alignedto National TreasuryframeworkMonitor andenhance theroadmap for assetmanagement indepartments alignedto NT framework62 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveMeasurableObjectivePerformanceMeasure/IndicatorEnhancedroadmap for AssetManagement inmunicipalities alignedto National TreasuryframeworkAnnual Target2009/10Develop andimplement aroadmap for AssetManagement inmunicipalities alignedto National TreasuryframeworkActual AchievementAgainst TargetThe unit developed andsent out a questionnaire tomunicipalities to assess theirasset management functions.The responses to questionnairewere analysed and the unitvisited municipalities to givefeedback and establish AMplansThe unit submitted reports onprocurement over R100 000 toNational Treasury.Reasons forDeviations/VariationUniform andbest supply chainmanagementpractices in theprovinceConsolidatedquarterlyPreferentialProcurement reportto departmentsDeveloped andimplementedSupply ChainManagement policyper department.ConsolidatedquarterlyPreferentialProcurement reportto departmentsDeveloped andimplemented SupplyChain ManagementimplementationStrategy permunicipalityConsolidatedquarterly SupplyChain Managementimplementationreport tomunicipalitiesConsolidatedmonthly reportfor provincialtreasury thatenhances financialmanagementQuarterly analysisand feedback todepartments andlegislatureEnsure that andMunicipal internalaudit and auditcommittees areused effectively andefficientlyConsolidatedquarterly SupplyChain Managementimplementationreport tomunicipalitiesA draft SCM policy has beendeveloped. The unit providedsupport to municipalities onthe interpretations of legislativeprescripts and the electronicreporting to National Treasury.Credible andtimeous reportingto FinancialGovernance byDepartments andMunicipalitiesConsolidatedmonthly reportfor provincialtreasury thatenhances financialmanagementQuarterly analysisand feedback todepartments andlegislatureQuarterly reportsubmitted onthe evaluation ofMunicipal InternalAudit and AuditCommittees incompliance withInternal auditframework andoutcomes ofAuditor GeneralreportsMonthly reports for AMreceived from departmentsare analysed for accuracyand feedback is given todepartments to correct errorswhen found.To ensureoptimised cashmanagementand enhancedfinancialmanagementsystems for theProvinceInternal auditimplementedin all provincialmunicipalitiesDeployment of the interns toRandfontein and Mogale Cityto assist these municipalitiescarry out their plans as theyappeared to be behind (Thiswas determined throughengagement with thesemunicipalities.Treasury Annual Report 2009/1063

Section ThreeReport on the performance of programmesSub-ProgrammeStrategicObjectiveMeasurableObjectivePerformanceMeasure/IndicatorAnnual Target2009/10Actual AchievementAgainst TargetReasons forDeviations/VariationAttended and contributed tothe audit committee meeting ofRandfontein Local Municipality;Lesedi Local Municipality andCity of Johannesburg.To enhancecomplianceto relevantlegislation andregulationsPrudent financialmanagement andgovernance withinGPGResearch andimplement bestpractice approachesto financialmanagement andgovernanceSupport RiskManagement asrequiredReports reflectingevidence ofbest practicesapproachesto financialmanagementimplementedSupport RiskManagement withimplementation ofamended PFMADevelop andimplement anannual programmefor research intodevelopment andimplementation ofnew approacheson financialmanagement andgovernanceOngoing provision of technicalassistance to departmentsand public, trading entities onaccounting treatment concerns.No research was done. Thedepartment went on a benchmarkingexercise to KZN toassess the effectiveness of theirSCM unit and the formation ofthe Bid Adjudication Tribunal.Assets andLiabilitiesManagementTo be a crediblepartner inFinancialManagementpractices andsystemsEnhancedrelationships withpriority stakeholderse.g. SCOPA, AG,GPG BankerFully functional andeffective FG forumsEvidence ofenhancedrelationships withpriority stakeholdersQuarterly FGForumsDevelopment andimplementationof a stakeholderrelationship calendarfor the unitQuarterly FGForumsMonthly Operational Minuteswith GPG banker took place asplanned.Cash Management forum forthe year tookTimeous andaccurate informationavailable from FGAccurate minutes ofmeetings reflectingresolutions takenand target dates forimplementationAccurate minutes ofmeetings reflectingresolutions takenand target dates forimplementationTimeous andaccurate informationavailable from FGMonthly andQuarterly updatedinformationavailable from theUnitMonthly and quarterly cashflow reports to the MEC/EXCO producedTimeous, qualitativeand accuratesubmissions receivedfrom departments(monthly, quarterlyand annual)Ensure timeous,qualitative andaccurate submissionsreceived fromdepartments(monthly, quarterlyand annual)No actual performance on thismatter.This performancedoes not relateto assets andliabilities64 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveMeasurableObjectivePerformanceMeasure/IndicatorAnnual Target2009/10Actual AchievementAgainst TargetReasons forDeviations/VariationTo ensureoptimised cashmanagementand enhancedfinancialmanagementsystems for theProvinceOptimised fundingfor provincialprioritiesMonthlyreconciliationsSet and achievedquarterly targets forminimum balanceA monthly executivesummary reportto DDG onperformance ofthe departmentregarding liquidityposition of provinceSet and achievequarterly targetsfor minimum andmaximum bankbalances andinterest receivedA monthly executivesummary reportto DDG onperformance ofthe departmentregarding liquidityposition of provinceInterest earned/collectedamounts to amounts toR54,06mio for 2009/10 financialyearBank balances, inclusive ofequitable shares, conditionalgrants, investments and revenuesurrendered reported on.Minimum and maximum bankbalances achieved. The range isR50 to R 100 millionAverage of R 84 million wasmaintained for 2009/10Revenue Budgetof R32millionwas exceededby 69%. This isdue to favourablemarket rates andthe Gautrain loanmoney that wasinvested in orderto generateinterest. Theloan was onlyrequested in themonth of March.Quarterly executivesummary reportto DDG onperformance ofthe departmentregarding liquidityposition of province(including specificreference toGautrain)A quarterlyexecutive summaryreport to DDGon performanceof the departmentregarding liquidityposition of province(including specificreference toGautrain)Monthly cash flow reports tothe EXCO produced for 2010Transactions for Gautrain wentthrough efficiently.NoneAnnually updatedand relevantinvestment policyfor provinceimplementedAnnually updatedand relevantinvestment policyfor provinceimplementedAnnual investment policy hasbeen reviewed and revised.Fully implementedand prudentFinancialManagementsystemsIntegrated FinancialManagement systemimplementedQuarterly reporton implementedmodulesAnnual reporton deviationsidentified throughthe monitoring ofprovincial financialsystems supportRevised userrequirements forprovincial needsImplementation ofbusiness processesIdentified modulesof financial Systemsestablished and fullyfunctioningQuarterly reporton implementedmodulesMigration first phase completed- Collection of user FICA docs& filling in registration form byTreasury.Systems Procedural Manual& registration templatedeveloped.Created databases of allmerged departments aspromulgated with effect from01/04/2010. Created databaseare:-• Gauteng Department ofFinance• Gauteng Department of LocalGovt and Housing• Gauteng Departmentof Health and SocialDevelopmentAssisted Health to incorporateCharlotte Maxeke into the MainAccountTransfer of personnel to thenew databases effected for allmerged departments to beeffective as of 01 April 2010Treasury Annual Report 2009/1065

Section ThreeReport on the performance of programmesSub-ProgrammeStrategicObjectiveMeasurableObjectivePerformanceMeasure/IndicatorAnnual Target2009/10Actual AchievementAgainst TargetReasons forDeviations/VariationBanking Services:Liaising with the Banking& investment unit for thename changes of the mergingDepartments.Provincial FinancialSystems TrainingFrameworkdeveloped andimplementedSCOA Training has beenconducted in 2009/10.Officials from Department ofHousing trained on SAP: AssetManagementPersal And Bas TrainingConductedTraineessometime do notattend the full 3day course andthere are financialimplicationsinvolvedReport ondeviations identifiedthrough themonitoring ofprovincial financialsystems supportSite visits to various SectorDepartments conducted toassist with the clearance ofmisallocated transactions.Monthly misallocation reportssent to the Chief FinancialOfficers of the respectiveDepartments.Lack of recordkeeping;Departmentsdon’t reporttimeously in theclearance of themisallocationsProvided assistance andconsultation to the financialsystem user as requested onAnnually updatedand relevantfinancial systemspolicy implementedMOU’s signed withdepartmentsAnnually updated and relevantfinancial systems policyimplementedMOU’s signed withdepartmentsPolicies ofSystems aredeveloped byNational Treasuryas custodiansof systems, asProvinces wedevelop PracticeNotes to align tothe developedpolicies. Nonew policiesdeveloped.Prudent cashflow managementprocessesand systemsinstitutionalisedCash Managementsystem implementedQuarterlyreports reflectingdepartmentsadhering to variancetargetsImplementationproject plan for cashmanagement systemapprovedFully implementedCash ManagementsystemProject temporarily suspended.Lack of properlyskilled cashmanagementpersonnel atGSSCAnnually updatedand relevant cashmanagement policyimplementedAnnually updatedand relevant cashmanagement policyimplementedCash Management Policydeveloped and reviewedSLA developed and reviewedNoneSLA’s signed withdepartmentsSLA’s signed withdepartments66 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveTo enhancecomplianceto relevantlegislation andregulationsMeasurableObjectiveUnqualified auditopinion for PRFfinancial statementsPerformanceMeasure/IndicatorUnqualified auditopinion for PRFfinancial statementsAnnual Target2009/10Unqualified auditopinion for PRFfinancial statementsActual AchievementAgainst TargetOfficials in the PRF unithave been appointed andreconciliation is currentlyin progress. The PRF unit iscapacitated as a result of thetransfer on the function fromAccounting Services to Assets& Liabilities.Reasons forDeviations/VariationResearch andimplement bestpractice approachesto financialmanagement andgovernanceReports reflectingevidence ofbest practicesapproachesto financialmanagementimplementedDevelop andimplement anannual programmefor research intodevelopment andimplementation ofnew approacheson financialmanagement andgovernancePlanned trip to Tanzania forESAAG was not approvedby HOD due to cost cutting.This type of forum enablesus to benchmark and learnfinancial management bestpractices across countries andinternational practicesCost cutting alimitationRiskManagementTo be a crediblepartner inFinancialManagementpractices andsystemsEnhancedrelationships withpriority stakeholderse.g. SCOPA, AG,GPG BankerEvidence ofenhancedrelationships withpriority stakeholdersDevelopment andimplementationof a stakeholderrelationship calendarfor the unitOngoing engagements areheld with Municipalities,Departments as well asNational Treasury. RelationshipManagement Meetings havebeen initiated with internalstakeholders.Fully functional andeffective FG forumsTimeous andaccurate informationavailable from FGQuarterly FGForumsAccurate minutes ofmeetings reflectingresolutions takenand target dates forimplementationQuarterly FGForumsAccurate minutes ofmeetings reflectingresolutions takenand target dates forimplementationOne Provincial RiskManagement Forum was heldduring the quarter.Timeous andaccurate informationavailable from FGMonthly andQuarterly updatedinformation availablefrom the UnitMonthly and Quarterly reportssubmitted on a timeous basis.To ensure theimplementationof enterprisewide riskmanagementwithin theProvinceEnsure alignmentof Provincial RiskManagement tothe National RiskManagementframeworkRisk ManagementStrategy effectivelyimplementedLevel of alignmentof Provincial RiskManagement tothe National RiskManagementFrameworkUpdated riskmanagementstrategy toinclude findingsof benchmarkingexerciseReviewed the InternationalStandards ISO 31000 againstthe draft National TreasuryFramework. ProvincialFramework not yet aligned toNational Treasury Framework.National Treasuryonly finalised thePublic SectorRisk ManagementFrameworkduring March2010.Treasury Annual Report 2009/1067

Section ThreeReport on the performance of programmesSub-ProgrammeStrategicObjectiveMeasurableObjectivePerformanceMeasure/IndicatorStatus inimplementation ofrisk managementstrategy formunicipalitiesAnnual Target2009/10Approved MunicipalRisk StrategyActual AchievementAgainst TargetTwo municipalities are havingapproved risk managementstrategies and sevenmunicipalities’ are in draftformat. Three municipalities arenot having frameworks as yet.Reasons forDeviations/VariationThe nonexistenceofChief RiskOfficer positionsat most of themunicipalitiesposes achallenge to theimplementationof EnterpriseRisk Management(ERM).In somemunicipalitiesInternal Audit isresponsible forERM which bringsabout conflict ofinterest as theywould need toaudit the ERMprocess.Not alldepartmentswere using theBarnOwl riskmanagementsoftware, whichmade thereporting andreview processtedious as somedepartmentswere reportingon Excel andothers onBarnOwl.Meanwhile thosereporting onExcel neededto capture theirinformation onBarnOwl. Thenewly developedtemplate willensure that alldepartmentsreport on thesame formatwhich will makeit easier for us toreview.Review andevaluation ofquarterly riskreports andcompare riskreports against riskregister and otherinformation receivedfrom budget unitReview andevaluation ofquarterly riskreportsReview andevaluation ofquarterly riskreports andcompare riskreports against riskregister and otherinformation receivedfrom budget unitFollow ups were made inrespect of the annual EnterpriseRisk Management processreview. Quarterly risk reportingtemplate developed on theBarnOwl Risk ManagementSoftware which will be used forreporting purposes.68 Treasury Annual Report 2009/10

03Sub-ProgrammeStrategicObjectiveMeasurableObjectivePerformanceMeasure/IndicatorAnnual Target2009/10Actual AchievementAgainst TargetReasons forDeviations/VariationERM process reviewreport published forDepartmentsERM process reviewreport published forDepartmentsERM process reviewreport published forDepartmentsERM process review wasconducted in quarter 1.An implementedtechnical assistanceand training calendarfor the year forCRO'sAn implementedtechnical assistanceand training calendarfor the year forCRO'sAn implementedtechnical assistanceand training calendarfor the year forCRO'sCalendar is not implemented.Technical assistance and trainingwere provided through variousengagements and meetings.Insufficient buy-inand commitmentfrom SeniorManagement.Most trainingtook place onlevels otherthan SeniorManagement.Risk Managementimplementedin all provincialdepartmentsQuarterly reportsubmitted onthe evaluationof ProvincialDepartment InternalAudit and AuditCommittees andAuditor Generalin compliance withcharterQuarterly reportsubmitted onthe evaluationof ProvincialDepartment InternalAudit and AuditCommittees andAuditor Generalin compliance withcharterThe evaluation of the ProvincialDepartments’ Internal Auditand Auditor General is not thefunction of Risk Management.This is not theresponsibility ofthe unit.To enhancecomplianceto relevantlegislation andregulationsPrudent financialmanagement andgovernance withinGPGYear-on-yearreduction of thenumber of noncomplianceBi-annual workshopwith provincialAG and OAG tounderstand theauditsEnsure that financialmanagementnormative measuresare adhered to interms of the PFMAand best practicesin Departments andPublic EntitiesBi-annual workshopwith provincialAG and OAG tounderstand theauditsGuidelines on cheque approvalsdeveloped which will helpwith ensuring that financialnormative measures areadhered to.Adherence to these measures isbeing enforced on a continuousbasis.Capacitated CFOstructures withinGPGSupport theimplementation ofnational financialmanagementcapacity planSupport theimplementation ofnational financialmanagementcapacity planStandardised structure forCFO’s office together with jobdescriptions compiled.Awaiting HOD’sapproval.Research andimplement bestpractice approachesto financialmanagement andgovernanceReports reflectingevidence ofbest practicesapproachesto financialmanagementimplementedDevelop andimplement anannual programmefor research intodevelopment andimplementation ofnew approacheson financialmanagement andgovernanceGauteng Provincial Governmenthas enhanced through bestpractices and research. This willhappen continuously.Treasury Annual Report 2009/1069

70 Treasury Annual Report 2009/10

Section Four04ANNUAL FINANCIALSTATEMENTS71 Annual Financial Statements72 Report of the Auditor-General74 Report of the Audit Committee76 Report of the Accounting Officer80 Appropriation Statement81 Detail per Programme85 Notes to the Appropriation Statement86 Statement of Financial Performance87 Statement of Financial Position88 Cash Flow Statement89 Financial Statements92 Notes to the Annual Financial Statements100 Disclosure Notes to the Annual Financial Statements104 Annexures to the Annual Financial StatementsTreasury Annual Report 2009/1071

Report of the Auditor-Generalfor the year ended 31 March 2010REPORT OF THE AUDITOR-GENERAL TOTHE GAUTENG PROVINCIAL LEGISLATUREON THE FINANCIAL STATEMENTS OFVOTE No. 14: DEPARTMENT OF FINANCE(TREASURY DIVISION) FOR THE YEARENDED 31 MARCH 2010REPORT ON THE FINANCIALSTATEMENTSIntroductionI have audited the accompanying financial statements of theDepartment of Finance (Treasury Division), which comprise theappropriation statement, the statement of financial position as at31 March 2010, and the statement of financial performance and cashflow statement for the year then ended, and a summary of significantaccounting policies and other explanatory information as set out onpage 89 to 106.Accounting Officer’s responsibility for the financialstatementsThe accounting officer is responsible for the preparation and fairpresentation of these financial statements in accordance withthe modified cash basis of accounting determined by the NationalTreasury, as set out in accounting policy note 1.1 and in the mannerrequired by the Public Finance Management Act, 1999 (Act No. 1of 1999)(PFMA). This responsibility includes: designing, implementingand maintaining internal control relevant to the preparation andfair presentation of financial statements that are free from materialmisstatement, whether due to fraud or error; selecting and applyingappropriate accounting policies; and making accounting estimates thatare reasonable in the circumstances.Auditor-General’s responsibilityAs required by section 188 of the Constitution of South Africa andsection 4 of the Public Audit Act of South Africa, 2004 (Act No. 25of 2004)(PAA), my responsibility is to express an opinion on thesefinancial statements based on my audit.I conducted my audit in accordance with International Standardson Auditing and General Notice 1570 of 2009 issued in GovernmentGazette 32758 of 27 November 2009. Those standards require that Icomply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether the financial statementsare free from material misstatement.An audit involves performing procedures to obtain audit evidenceabout the amounts and disclosures in the financial statements. Theprocedures selected depend on the auditor’s judgement, includingthe assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to theentity’s preparation and fair presentation of the financial statementsin order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion onthe effectiveness of the entity’s internal control. An audit also includesevaluating the appropriateness of accounting policies used and thereasonableness of accounting estimates made by management, as wellas evaluating the overall presentation of the financial statements.I believe that the audit evidence I have obtained is sufficient andappropriate to provide a basis for my audit opinion.OpinionIn my opinion, the financial statements present fairly, in all materialrespects, the financial position of the Department of Finance(Treasury Division) as at 31 March 2010, and its financial performanceand its cash flows for the year then ended are prepared, in all materialrespects, in accordance with the modified cash basis of accountingas determined by National Treasury, as set out in accounting policynote 1.1 to the financial statements and in the manner required bythe PFMA.Emphasis of matterI draw attention to the matter below. My opinion is not modified inrespect of the matter:Basis of accountingThe department’s policy is to prepare financial statements on themodified cash basis of accounting, described in accounting policynote 1.1.Additional mattersI draw attention to the matter below. My opinion is not modified inrespect of the matter:Unaudited supplementary schedulesThe supplementary information set out on pages 104 to 106 does notform part of the financial statements and is presented as additionalinformation. I have not audited these schedules and accordingly I donot express an opinion thereon.REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTSIn terms of the PAA of South Africa and General notice 1570 of2009, issued in Government Gazette No. 32758 of 27 November2009 I include below my findings on the report on predetermined72 Treasury Annual Report 2009/10

04objectives, compliance with the PFMA and fi nancial management(internal control).FindingsPredetermined objectivesNo matters to report.Compliance with laws and regulationsNo matters to report.INTERNAL CONTROLI considered internal control relevant to my audit of the fi nancialstatements and the report on predetermined objectives andcompliance with the PFMA enabling legislation, but not for thepurposes of expressing an opinion on the effectiveness of internalcontrol. The matters reported below are limited to the defi cienciesidentifi ed during the audit.No matters to report.Johannesburg26 July 2010Treasury Annual Report 2009/1073

Report of the Audit Committeefor the year ended 31 March 2010REPORT OF THE AUDIT COMMITTEE FOR THE REPORTING PERIOD ENDED31 MARCH 2010The audit committee has pleasure in submitting herewith the overview report of the committee for the reporting period ended 31 March2010.ATTENDANCE BY MEMBERS OF THE COMMITTEE:Number of Meetings AttendedName of MemberDesignation26/01/10 16/02/10 20/04/10 21/05/10 26/07/10Piet Fourie Chairperson Yes Yes Yes Yes YesCleopas Sanagura External Member Yes No Yes Yes YesMaureen Manyama-Matome External Member No ResignedNomfundo TshabalalaActing Accounting Officer(Divisional Head)YesYesYesYesYesYesN/AYesN/AYesStewart Lumka Accounting Officer No No No Yes YesZiphorah Mamabolo Acting Chief Financial Officer Yes Yes N/A N/A N/AClifford Appel Chief Financial Officer No No Yes Yes YesAUDIT COMMITTEE CHARTERAll meetings of the Audit committee were held in accordance withthe requirements of the Charter of the Audit committee. Duringthe year under review the Charter was reviewed and adapted to beeffective for the 2010/2011 reporting period.THE ACCOUTING OFFICERThe committee noted from the various quarterly reports as tabled bythe Accounting Officer that the formal process to authorise prior yearunauthorised expenditure is still ongoing. The process involves all keydecision makers within the Gauteng Legislative. The committee alsonoted that the Department of Finance is engaged in a tender processto appoint an appropriate service provider to investigate within theGauteng province possible duplicate payments as reported by theinternal audit function. Except for the above no material issues werereported to the Audit committee by the Accounting officer.Comprehensive progress reports on the implementation of auditfindings as reported by the Auditor-General and the internal auditfunction has been noted by the committee.The Accounting Officer briefed the committee on the status ofthe Risk management function within the division and on the drivewithin Gauteng Province to formalise the various risk managementfunctions.One-on-one discussions with the Accounting Officer did not revealany matters of concern.74 Treasury Annual Report 2009/10

04THE INTERNAL AUDIT FUNCTIONFrom the various reports issued by the internal audit function thecommittee noted that no material break down in key internalfinancial controls has been reported. The committee also noted thatthe internal audit function in all material respects has completed allplanned audits in accordance with the approved audit plan for the2009/2010 reporting period.The committee also approved the internal audit plans for the2010/2011 reporting period. The committee was also given theassurance that every effort will be made by the Chief Audit Executiveto have all the resources available to properly execute the audit plan.The committee was also given the assurance by the Chief AuditExecutive that no Ad Hoc special investigations will be undertakenby the internal audit function without the prior approval of the Auditcommittee.One-on- one-discussions with the head of the unit did not reveal anyother matters of concern.THE AUDITOR-GENERALThe committee noted the Letter of engagement and the Auditstrategy memorandum for the 2009/2010 reporting periodOne-on-one –discussions with the representatives of the Auditor-General did not reveal any matters of concern.APPRECIATIONIn conclusion the committee expresses its appreciation towards theAccounting Officer and all other role players for the constructivemeetings the Audit committee had.One-on-one discussions with the Chief Audit Executive did not revealany matters of concern.THE FORENSIC UNITThe committee expressed its concern on the absence of managementcomments and management actions on reports issued by the forensicunit. The committee also concluded that the turnaround time onforensic investigations is too long.CHAIRPERSON OF THE AUDIT COMMITTEETreasury Annual Report 2009/1075

Report of the Accounting Officerfor the year ended 31 March 20101 General review of the state of financial affairsThe 2009/10 year in Gauteng has been characterised by anintense and honest introspection and strategic realignment, as hasbeen the case throughout the province. Our department was alsothrust to the centre of this change and willingly, we embracedthe change with vigour as it provided yet another opportunityfor the department to live out its vision. The revised vision ofthe department states: “… be an activist, developmental andinterventionist department; providing strategic and operationalsupport to the Province…” Immediately the department wascalled upon to live this vision and lead the province through thefinancial challenges, by managing provincial cash-flow and instillingfiscal discipline on the spending by provincial departments. Out ofan appropriated budget of R177m an amount of R174.3m wasspent during this period of reporting.The department was met with serious challenges in revenuegeneration. As a result, the revenue collection for the year had tobe revised down from R128million to R54 million, mainly due tothe depletion of the provincial reserves. In the past, we have beenable to generate significant interest revenue from investing excessfunds in the short term market which resulted positive provincialtreasury balances. In this financial year, cash flow managementby the department (Provincial Treasury) has been tighter andstricter, while the spending by provincial departments was at anaccelerated pace, which strangled the availability of resources forinvestment. The situation has been showing some improvementin the final quarter of the financial year as monthly collectionswere better than forecasts.As activists we were required to deploy resources at theDepartment of Health in order to provide support, as therewere huge challenges in the finances of the Department ofHealth. This took the form of sending a team of sector specialiststo assist in the office of the chief financial officer’s office. Treasuryworked very closely with Health to ensure that cash managementissues are dealt with to minimise the non payment of serviceproviders. This was to ensure that the citizens of the provincedo not get impacted negatively by the challenges experienced bythe Health. Similar operational support was provided to NokengTsa Taemane to ensure that the financial challenges faced by themunicipality are addressed. Working together with Departmentof Local Government and National Treasury a Recovery Plan wasdeveloped and the implementation has commenced.On staff development, bursaries and the competency frameworkthe department spent R2.4 million, R1.3 million and R747 000respectively. This represents investment in human capital of atleast 5% of the payroll bill of the department, clearly indicatingthe extent to which the department appreciates its humanresources.1.1 Major Projects UndertakenThere were major projects that were undertaken in the 2009/10financial year, in line with Gauteng Treasury’s stated objectiveof strengthening financial management capacity to achieveoperational efficiency and that of providing technical assistanceto departments. Some of these projects take further the goal ofmaking Gauteng, a province that promotes good governance andensuring sound financial management.These include:• Employee Self Service (ESS) – Electronic leave applicationsystem was rolled out to all the GPG Departments in themiddle of the year. This took away the paperwork withoutlosing the control objectives and the audit trail for leavemanagement. Treasury was one of the departments wherethis system was implemented.• SAP Asset Management module implemented in 2008/09was rolled out to the remaining departments in the 2009/10financial year. This ensures that the whole province advancestogether in the progress on managing its physical assets, whichis very important in view of the fact that this represents asignificant cumulative investment to support service deliveryin the province.• The Business Continuity Plan (BCP) was updated and testedfor the department. Smart organisations always ensure thatin the unlikely and unfortunate event of an adverse incidenthappening, they are able to recover quickly and continueproving the important services required of them.• Phase 2 of the HR Competency Framework project wasfinalised in the 2009/10 financial year. This was a continuationof initiative that was started in the previous financial year, andrepresents a continued re-investment in the delivery capacityof the department and on its valued precious resource, itspeople.• Development of the Standard Procedure Manuals – phase 1was completed for this project. The project sought to captureand cystalise the institutional knowledge that is embodiedin the delivery systems and processes in the province, forit to be available for resolving future challenges. This phaseof the project involved formulating an understanding ofkey processes within the Gauteng Provincial GovernmentDepartments and Status quo report, consensus on standardprocedure manuals to be developed.• Business model due diligence for Gauteng Fund ProjectOffice was conducted. As the custodians of and leaders infinancial management, the department was undertaking an76 Treasury Annual Report 2009/10

04introspection process with regard to the business model ofthe entity under the department.• Training and awareness sessions conducted by RiskManagement with some municipalities. This was part ofthe process for laying the foundation for implementing riskmanagement at municipalities.• Risk Management conducted an Internal EnvironmentSurvey at Nokeng Tsa Taemane. This municipality hadreceived a number of interventions as part of our mandatedsupport. This assessment was geared at ensuring that weobtain an objective measure of the as is situation in order toinform the future support services for the municipality.1.2 Spending trendsGauteng Treasury’s effective utilisation of its allocated budget andachievements are an indication that the department has pursued itsmandate, vision and mission in the Gauteng Province. The adjustedbudget of the department increased from R191 million in 2008/9to R192 million in 2009/10 as shown in the table below. However,following the reconfiguration and reprioritisation exercises, thedepartment adjusted its own budget down to R177 million.This reprioritisation has gone a long way toward funding othercritical service delivery pressures in the province. Departmentthat benefited from this reprioritisation include, Department ofHealth, for assistance with medical waste management; GautengShared Services (GSSC) for IT and Telephone related costs and forfinancial assistance to the Nokeng tsa Taemane municipality. Thisclearly indicates that the department is serious about providingleadership in the province on stretching each rand to bring servicedelivery to the people of Gauteng.The department has utilised R174.3 million (98.3%) of this budget,thus effectively carrying out its expected responsibilities towardsthe province and its people.2009/10 2008/9 % ChangeFinal Appropriation R177m R191m (7%)Spending for the year R174.3m R188.2m (7%)Under-spending R2.97m (1.7%) R2.79m (1.5%) (0.2%)Vacancy rate 19.4 % 15.7 % 3.7%The under spending of R2.97 million (1.7%) is primarily attributedto the following:• Compensation of employees due to vacant positions such asCIO, Director Legal Services and various other positions inHR that were not filled (R2 million). A moratorium was placedon filling vacant positions because of the reconfiguration.• The department had budgeted for the purchase of newfurniture for the new building that we were supposed tomove to (R274 thousand). As a result of the merger the planswere abandoned and part of the Treasury Division moved tothe GSSC Building.• In goods and services, a budget was set aside for thedevelopment of the Financing Modelling system for thebudget management unit and that did not happen (R694thousand). The department deferred the development of theLong-Term Financing model until the process of streamliningelectronic systems development in the province is finalised.1.3 Service rendered by the departmentThe MEC for Finance is the Political Head of Provincial Treasuryand is primarily responsible for the execution of the functions andpowers as prescribed in Chapter 3 of the PFMA.Gauteng Treasury provides various financial management functionsto both provincial departments and delegated municipalities asstipulated in the Public Finance Management Act (PFMA) and theMunicipal Finance Management Act (MFMA).The Department has both an advisory and a regulatory rolein the Gauteng Provincial Government. This includes amongstothers economic analysis, budget management, public finance,norms and standards, asset management, risk management,general accounting requirements and public private partnershiptransaction advice on technical, financial and legal aspects atprovincial and local levels.3 Capacity constraintsThe staff establishment on 31 March 2010 consisted of 299positions of which 241 were filled. Although the Department’svacancy rate has slightly increased from 15.7% to 19.4% due tothe reconfiguration of the Department of Finance, there wasno negative impact on service delivery as the Department wasable to put interventions in place to achieve its strategic mandate.Some of the projects in specifically the Corporate Services unitthat were planned for the financial year under review were placedon hold to avoid duplication.A moratorium was placed on the filling of support functionandsenior management positions as a result of the merger ofTreasury and the Shared Services into the Department of Finance.This decision was taken in the interest of minimising cases whereduplications occur in the matching and placement of staff in theDepartment of Finance. Examples of positions that were notfilled are the Director: Legal Services, Chief Information Officer,Director: Security and Auxiliary ServicesTreasury Annual Report 2009/1077

Report of the Accounting Officerfor the year ended 31 March 20104 Utilisation of donor fundsGauteng Treasury did not receive any donor funding.5 Trading entities and public entitiesThe Gauteng Fund Project Office is an entity operating underthe department. It has been operating out of a mandate given bythe GPG Executive Council to seek alternative sources of fundingfor key strategic infrastructure projects for the province. The keyobjectives of the project office are:• Increase the GPG’s financial capacity to fund key strategicprojects of the province,• Leverage domestic financial markets and expertise toaccelerate delivery of key infrastructure and services,• Pursue partnering with the private sector on the delivery ofthe identified infrastructure projects.The GFPO is in process of merging with Gauteng PartnershipFund to constitute a Gauteng Funding Agency as pronounced bythe Premier.6 Organisations to whom transfer payments havebeen madeTransfer payments were made to the Gauteng Fund ProjectOffice – R40 million for their operational costs. The amounts ofthe transfers and comparative information are disclosed in theannexure to the financial statements.7 Corporate governance arrangementsThe department has a functional and effective Risk ManagementCommittee which is chaired by the HOD; all executive managersare members thereof as well as the Chief Risk Officer. The riskprofile of the department is monitored on a quarterly basisduring the Risk Management Committee meetings. The riskprofile per Chief Directorate was completed in the beginningof the 2009/2010 financial year. Regular monitoring on theimplementation of action plans is conducted to ensure thestrengthening of internal controls.A Fraud Prevention Plan compiled for the department in June 2007has been revised for the 2009/2010 financial year. Departmentalstaff was taken through fraud awareness sessions throughout theyear in order to educate, manage, identify and report incidencesof fraud and corruption.A three year Internal Audit Plan was developed with the assistanceof Gauteng Audit Services to ensure compliance with the InternalAudit Charter for the province. These plans were approved bythe Cluster Audit Committee which in turn exercises oversighton the implementation of the plans.The Business Continuity Plan was updated and tested during theyear to test and ensure that the department is able to respondappropriately to business disruptions that might occur.The Department complied with section 38 (1) (a) (ii) of thePFMA as performance and internal controls were reported toand reviewed by the Audit Committee quarterly.8 Discontinued department activitiesThere are no discontinued departmental activities for theyear under review. During the year under review there was apromulgation of the Department of Finance, which constitutedthe Treasury Services Division and the Shared Services Division.9 New departmental activitiesThere are no new departmental activities for the year underreview.10 Asset managementThe budget was centralised for asset management and theasset management plan developed which is aligned to AnnualPerformance Plan to ensure good asset management practice.Stores for Inventory were centralised this resulted in improvedInventory management.Assets are classified and categorised correctly as per the minimumrequirement of asset register as issued by National Treasury on theAsset Management Framework. Validation of the completenessof asset register was performed through physical identificationand spot checks. Section 45(e) of PFMA was implementedwhereby officials signed inventory lists for the assets in their areaof responsibility.The merger between GSSC and Treasury required that the twodepartments merge their asset registers and transfer them tothe Gauteng Department of Finance. The asset managementpolicies of the respective departments have been reviewed andare being consolidated for adoption by the merged department.Further responsibility for asset and inventory management will fallunder the new department, including achieving efficiencies in theutilisation of the departmental assets and inventories.11 InventoriesThe department had an inventories balance of R800 000 at yearend consisting of stationery items.78 Treasury Annual Report 2009/10

0412 Performance InformationStaff performanceThe Performance Management and Development System(PMDS) in respect of individual staff performance was successfullyimplemented during the period of review, with quarterly reviewsand bi-annual reviews being conducted for all employees. TheInternal HR Unit provided ongoing support to managers andemployees in the application of the performance managementand development system. This is done to ensure standardisationof interpretation and application across all units. Emphasis wasalso placed on ensuring that individual performance agreementswere aligned to operational and strategic plans.Staff assessments for the 2009/2010 financial year are inthe process of being concluded and it is the expected that allassessments and rewards will be finalised by July 2010.Departmental PerformanceQuarterly review meetings with senior management were held todiscuss departmental performance as part of the monitoring andevaluation process. This took the form of formally interrogatingthe reporting against the non financial performance targets bybusiness units. Communication with various stakeholders wasconducted through various Fora (e.g. Asset Management, AFS,MTEC hearings, Risk Management, etc.) to ensure the following,• Improve stakeholder service delivery• Strengthen the oversight role of the department, and• To accomplish the rest of the mandate of the department13 Events after the reporting dateWith effect from the 1st April 2010, the Department of GautengTreasury will be merged with the Gauteng Shared Services Centreto one department called Department of Finance.Most of the functions of the department are housed at ImbumbaHouse, 75 Fox Street, Johannesburg, including the offices of theMEC, HOD and the office of the CFO. It is anticipated that someof the physical movable assets of the department will not berequired as a result of the merger. The department is currentlyconsidering a proposal to assist another department that requiresthese assets following its own reconfiguration activities.14 SCOPA ResolutionsAll resolutions received from the Standing Committee on PublicAccounts (SCOPA) were resolved to the satisfaction of thecommittee.ApprovalThe Annual Financial Statements set out on pages 13 to 47 havebeen approved by the Accounting Officer.Nomfundo TshabalalaGauteng Treasury Accounting OfficerDATE: 31 May 2010Treasury Annual Report 2009/1079

Financial Statementsfor the year ended 31 March 2010APPROPRIATION STATEMENTfor the year ended 31 March 2010APPROPRIATIONSTATEMENTAdjustedAppropriationAppropriation per programme2009/10 2008/09Expenditureas % of finalappropriationShifting ofFinal ActualFinal ActualFunds Virement Appropriation Expenditure VarianceAppropriation ExpenditureR’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’0001. AdministrationCurrent payments 48,957 - (1,186) 47,771 47,770 1 100.0% 34,809 34,564Payment for capitalassets1,213 - - 1,213 939 274 77.4% 6,651 6,6512. Sustainable ResourceManagementCurrent payments 45,962 - (2,119) 43,843 41,146 2,697 93.8% 45,436 42,891Transfers and subsidies 40,000 - - 40,000 40,000 - 100.0% 61,551 61,5513. Financial GovernanceCurrent payments 41,165 - 3,305 44,470 44,470 - 100.0% 42,582 42,582TOTAL 177,297 - - 177,297 174,325 2,972 98.3% 191,029 188,239Reconciliation with statement of financial performanceFinalAppropriationActualExpenditure2009/10 2008/09FinalAppropriationActualExpenditureADDDepartmental receipts 54,367 128,880Actual amounts per statement of financial performance (totalrevenue)231,664 319,909Actual amounts per statement of financial performance (totalexpenditure)174,325 188,23980 Treasury Annual Report 2009/10

04DETAIL PER PROGRAMMEfor the year ended 31 March 2010AdjustedAppropriationShifting ofFundsAppropriation per economic classificationVirement2009/10 2008/09FinalAppropriationActualExpenditureVarianceExpenditureas % of finalappropriationFinalAppropriationActualExpenditureR’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000Current paymentsCompensation ofemployees92,595 (1,766) (1,889) 88,940 86,932 2,008 97.7% 59,287 59,286Goods and services 43,489 1,755 1,889 47,133 46,443 690 98.5% 63,540 60,751Interest and rent on landFinancial transactions inassets and liabilities- 11 - 11 11 - 100.0% - -Transfers and subsidiesProvinces andmunicipalities1,551 1,551Departmental agenciesand accounts40,000 - - 40,000 40,000 - 100.0% 60,000 60,000Payments for capitalassetsMachinery andequipment1,213 - - 1,213 939 274 77.4% 6,651 6,651Total 177,297 - - 177,297 174,325 2,972 98.3% 191,029 188,239Programme 1 –AdministrationAdjustedAppropriationStatutory Appropriation per economic classification2009/10 2008/09Shifting ofFundsVirementFinalAppropriationActualExpenditureVarianceExpenditureas % of finalappropriationFinalAppropriationActualExpenditurePer Economicclassification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000Current paymentsCompensation ofemployees28,801 (723) (1,191) 26,887 26,886 1 100.0% 13,114 13,113Goods and services 20,156 712 5 20,873 20,873 - 100.0% 21,695 21,451Interest and rent on landFinancial transactions inassets and liabilities- 11 - 11 11 - 100.0% - -Payments for capitalassetsMachinery andequipment1,213 - - 1,213 939 274 77.4% 6,651 6,651Total 50,170 - (1,186) 48,984 48,709 275 99.4% 41,460 41,215Treasury Annual Report 2009/1081

Financial Statementsfor the year ended 31 March 2010DETAIL PER PROGRAMMEfor the year ended 31 March 2010AdministrationAdjustedAppropriationShifting ofFundsAppropriation per economic classificationVirement2009/10 2008/09FinalAppropriationActualExpenditureVarianceExpenditureas % of finalappropriationFinalAppropriationActualExpenditureDetail persub-programme R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’0001.1 Office of the MECCurrent payments 4,477 (262) (852) 3,363 3,363 - 100.0% - -1.2 Management ServicesCurrent payments 4,632 (939) (111) 3,582 3,582 - 100.0% 3,307 3,3061.3 Office of the CFOCurrent payments 18,622 (1,933) (168) 16,521 16,520 1 100.0% 12,182 12,182Payment for capitalassets1,213 - - 1,213 939 274 77.4% 6,651 6,6511.4 Corporate ServicesCurrent payments 21,226 3,134 (55) 24,305 24,305 - 100.0% 19,320 19,076Total 50,170 - (1,186) 48,984 48,709 275 99.4% 41,460 41,215Programme 2 –Sustainable ResourceManagementAdjustedAppropriationShifting ofFundsVirement2009/10 2008/09FinalAppropriationActualExpenditureVarianceExpenditureas % of finalappropriationFinalAppropriationActualExpenditurePer Economicclassification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000Current paymentsCompensation ofemployees39,755 (668) (698) 38,389 36,382 2,007 94.8% 28,394 28,394Goods and services 6,207 668 (1,421) 5,454 4,764 690 87.3% 17,042 14,497Transfers and subsidiesto:Provinces andmunicipalities1,551 1,551Departmental agenciesand accounts40,000 - - 40,000 40,000 - 100.0% 60,000 60,000Total 85,962 - (2,119) 83,843 81,146 2,697 96.8% 106,987 104,44282 Treasury Annual Report 2009/10

04DETAIL PER PROGRAMMEfor the year ended 31 March 2010Sustainable ResourceManagementAdjustedAppropriationShifting ofFundsVirement2009/10 2008/09FinalAppropriationActualExpenditureVarianceExpenditureas % of finalappropriationFinalAppropriationActualExpenditureDetail per subprogrammeR’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’0002.1 Programme SupportCurrent payments 1,981 - (269) 1,712 1,712 - 100.0% 1,614 1,6142.2 Budget ManagementCurrent payments 9,659 - (5) 9,654 8,739 915 90.5% 8,541 8,5412.3 Fiscal Policy andEconomic AnalysisCurrent payments 8,464 - (698) 7,766 6,718 1,048 86.5% 8,466 7,2372.4 Public FinanceCurrent payments 10,602 - (511) 10,091 9,640 451 95.5% 9,816 9,3212.5 Public PrivatePartnershipCurrent payments 4,428 - (467) 3,961 3,912 49 98.8% 3,801 3,6972.6 Local GovernmentResourceManagement andIGRCurrent payments 10,828 - (169) 10,659 10,425 234 97.8% 13,198 12,481Transfers andsubsidies1,551 1,5512.7 Gauteng FundTransfers andsubsidies40,000 - - 40,000 40,000 - 100.0% 60,000 60,000Total 85,962 - (2,119) 83,843 81,146 2,697 96.8% 106,987 104,442Treasury Annual Report 2009/1083

Financial Statementsfor the year ended 31 March 2010DETAIL PER PROGRAMMEfor the year ended 31 March 2010Programme 3 – FinancialGovernanceAdjustedAppropriationShifting ofFundsVirement2009/10 2008/09FinalAppropriationActualExpenditureVarianceExpenditureas % of finalappropriationFinalAppropriationActualExpenditurePer Economicclassification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000Current paymentsCompensation ofemployees24,039 (375) - 23,664 23,664 - 100.0% 17,779 17,779Goods and services 17,126 375 3,305 20,806 20,806 - 100.0% 24,803 24,803Total 41,165 - 3,305 44,470 44,470 - 100.0% 42,582 42,582Financial GovernanceAdjustedAppropriationShifting ofFundsVirement2009/10 2008/09FinalAppropriationActualExpenditureVarianceExpenditureas % of finalappropriationFinalAppropriationActualExpenditureDetail persub-programme R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’0003.1 Programme SupportCurrent payments 928 (117) - 811 811 - 100.0% 2,636 2,6363.2 Assets and LiabilitiesManagementCurrent payments 19,465 1,931 3,305 24,701 24,701 - 100.0% 10,184 10,1873.3 Accounting ServicesCurrent payments 10,974 34 - 11,008 11,008 - 100.0% 24,460 24,4603.4 Risk ManagementCurrent payments 9,798 (1,848) - 7,950 7,950 - 100.0% 5,302 5,299Total 41,165 - 3,305 44,470 44,470 - 100.0% 42,582 42,58284 Treasury Annual Report 2009/10

04NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 20101. Detail of transfers and subsidies as per Appropriation Act (after Virement):Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-H) to the AnnualFinancial Statements.2. Detail on financial transactions in assets and liabilitiesDetail of these transactions per programme can be viewed in the note on Financial transactions in assets and liabilities to the Annual FinancialStatements.3. Explanations of material variances from Amounts Voted (after Virement):3.1 Per ProgrammeFinalAppropriationActualExpenditureVarianceR’000 R’000 R’000Variance asa % of FinalAppropriationAdministration 48,984 48,709 275 0.6%Sustainable Resource Management 83,843 81,146 2,697 3.2%Financial Governance 44,470 44,470 - 0%3.2 Per Economic classificationFinalAppropriationActualExpenditureVarianceVariance asa % of FinalAppropriationR’000 R’000 R’000 R’000Current payments:Compensation of employees 88,941 86,932 2,009 2.3%Goods and services 47,132 46,443 689 1.5%Financial transactions in assets and liabilities 11 11 - 0%Transfers and subsidies:Departmental agencies and accounts 40,000 40,000 - 0%Payments for capital assets:Machinery and equipment 1,213 939 274 22,6%Explanation of variances:a) The moratorium that was placed on filling vacant posts in light of the merger affected compensation budget negatively. The savings weredriven by the provision for the appointment of senior posts such as the HOD, the DDG for Financial Governance and some chief directorand director posts that could not be filled.b) In goods and services, a budget was set aside for the development of the Financing Modelling system for the budget management unit andthat did not happen (R689 thousand). The Department deferred the development of the Long-Term Financing model until it finalises theprocess of streamlining electronic systems development.c) Payment for capital assets – the department made provision for capital requirements following the announcement to merge the twodepartments. The actual move only happened in the new financial year.Treasury Annual Report 2009/1085

Financial Statementsfor the year ended 31 March 2010STATEMENT OF FINANCIAL PERFORMANCEfor the year ended 31 March 20102009/10 2008/09PERFORMANCENoteR’000 R’000REVENUEAnnual appropriation 1 177,297 191,029Departmental revenue 2 54,367 128,880TOTAL REVENUE 231,664 319,909EXPENDITURECurrent expenditureCompensation of employees 3 86,932 59,286Goods and services 4 46,443 60,751Financial transactions in assets and liabilities 5 11Unauthorised expenditure approved without funding - -Total current expenditure 133,386 120,037Transfers and subsidiesTransfers and subsidies 6 40,000 61,551Unauthorised expenditure approved without funding - -Total Expenditure for Transfers and subsidies 40,000 61,551Expenditure for capital assets 7Tangible capital assets 791 6,651Software and other intangible assets 148 -Unauthorised expenditure approved without funding - -Total expenditure for capital assets 939 6,651TOTAL EXPENDITURE 174,325 188,239SURPLUS/(DEFICIT) FOR THE YEAR 57,339 131,670Reconciliation of Net Surplus/(Deficit) for the yearVoted funds 2,972 2,790Annual appropriation 2,972 2,790Departmental revenue 2 54,367 128,880Direct Exchequer receipts/paymentsSURPLUS/(DEFICIT) FOR THE YEAR 57,339 131,67086 Treasury Annual Report 2009/10

04STATEMENT OF FINANCIAL POSITIONas at 31 March 2010POSITIONASSETSNote2009/10 2008/09R’000 R’000Current assets 3,728 5,037Unauthorised expenditure - -Fruitless and wasteful expenditure - -Cash and cash equivalents 8 3,651 2,400Receivables 9 77 2,637TOTAL ASSETS 3,728 5,037LIABILITIESCurrent liabilities 3,728 5,037Voted funds to be surrendered to the Revenue Fund 10 2,972 2,790Departmental revenue to be surrendered to the Revenue Fund 11 306 1,430Bank overdraft - -Payables 12 450 817TOTAL LIABILITIES 3,728 5,037NET ASSETS - -Treasury Annual Report 2009/1087

Financial Statementsfor the year ended 31 March 2010CASH FLOW STATEMENTfor the year ended 31 March 20102009/10 2008/09CASH FLOWNoteR’000 R’000CASH FLOWS FROM OPERATING ACTIVITIESReceipts 231,664 319,909Annual appropriated funds received 1 177,297 191,029Departmental revenue received 2 54,367 128,880Net (increase)/decrease in working capital 2,193 1,730Surrendered to Revenue Fund (58,281) (138,859)Current payments (133,386) (120,037)Transfers and subsidies paid (40,000) (61,551)Net cash flow available from operating activities 13 2,190 1,192CASH FLOWS FROM INVESTING ACTIVITIESPayments for capital assets 7 (939) (6,651)Net cash flows from investing activities (939) (6,651)CASH FLOWS FROM FINANCING ACTIVITIESDistribution/dividend receivedIncrease/(decrease) in net assetsIncrease/(decrease) in non-current payablesNet cash flows from financing activities - -Net increase/(decrease) in cash and cash equivalents 1,251 (5,459)Cash and cash equivalents at beginning of period 2,400 7,859Cash and cash equivalents at end of period 14 3,651 2,40088 Treasury Annual Report 2009/10

04Financial Statementsfor the year ended 31 March 2010The Financial Statements have been prepared in accordance with thefollowing policies, which have been applied consistently in all materialaspects, unless otherwise indicated. However, where appropriate andmeaningful, additional information has been disclosed to enhancethe usefulness of the Financial Statements and to comply with thestatutory requirements of the Public Finance Management Act,Act 1 of 1999 (as amended by Act 29 of 1999), and the TreasuryRegulations issued in terms of the Act and the Division of RevenueAct, Act 2 of 2006.1. Presentation of the Financial Statements1.1 Basis of preparationThe Financial Statements have been prepared on a modifiedcash basis of accounting, except where stated otherwise. Themodified cash basis constitutes the cash basis of accountingsupplemented with additional disclosure items. Under the cashbasis of accounting transactions and other events are recognisedwhen cash is received or paid.1.2 Presentation currencyAll amounts have been presented in the currency of the SouthAfrican Rand (R) which is also the functional currency of thedepartment.1.3 RoundingUnless otherwise stated all financial figures have been rounded tothe nearest one thousand Rand (R’000).1.4 Comparative figuresPrior period comparative information has been presented inthe current year’s financial statements. Where necessary figuresincluded in the prior period financial statements have beenreclassified to ensure that the format in which the informationis presented is consistent with the format of the current year’sfinancial statements.1.5 Comparative figures - Appropriation StatementA comparison between actual amounts and final appropriation permajor classification of expenditure is included in the AppropriationStatement.2. Revenue2.1 Appropriated fundsAppropriated funds comprises of departmental allocationsas well as direct charges against revenue fund (i.e. statutoryappropriation).Appropriated funds are recognised in the financial records on thedate the appropriation becomes effective. Adjustments made interms of the adjustments budget process are recognised in thefinancial records on the date the adjustments become effective.The total appropriated funds received during the year arepresented in the statement of financial performance.Unexpended appropriated funds are surrendered to theNational/Provincial Revenue Fund. Any amounts owing to theNational/Provincial Revenue Fund at the end of the financial yearare recognised as payable in the statement of financial position.2.2 Departmental revenueAll departmental revenue is recognised in the statement offinancial performance when received and is subsequently paid intothe National/Provincial Revenue Fund, unless stated otherwise.Any amount owing to the National/Provincial Revenue Fund isrecognised as a payable in the statement of financial position.No accrual is made for the amount receivable from the lastreceipt date to the end of the reporting period. These amountsare however disclosed in the disclosure note to the annual financialstatements.3. Expenditure3.1 Compensation of employees3.1.1 Short-term employee benefitsThe cost of short-term employee benefits are expensedin the statement of financial performance when financialauthorisation for payment is effected on the system (byno later than 31 March each year)Short-tem employee benefits that give rise to a presentlegal or constructive obligation are disclosed in thedisclosure notes to the financial statements. Theseamounts must not be recognised in the statement offinancial performance or position.3.1.2 Post retirement benefitsEmployer contribution (i.e. social contributions) isexpensed in the statement of financial performancewhen the final authorisation for payment is effected onthe system (by no later than 31 March each year).No provision is made for retirement benefits in thefinancial statements of the department. Any potentialliabilities are disclosed in the financial statements ofTreasury Annual Report 2009/1089

Financial Statementsfor the year ended 31 March 2010the National Revenue Funds and not in the financialstatements of the employer department.Social contribution (such as medical benefits) made by thedepartment for certain of its ex-employees are classifiedas transfers to households in the statement of financialperformance.3.1.3 Termination benefitsTermination benefits such as severance packages arerecognised as an expense in the statement of financialperformance as a transfer (to households) when the finalauthorisation for payment is effected on the system (byno later than 31 March of each year).3.1.4 Other long-term employee benefitsOther long-term employee benefits (such as cappedleave) are recognised as an expense in the statement offinancial performance as a transfer (to households) whenthe final authorisation for payment is effected on thesystem (by no later than 31 March of each year).Long-term employee benefits that give rise to a presentlegal or constructive obligation are disclosed in thedisclosure notes to the financial statements.3.2 Goods and servicesPayments made for goods and/or services are recognised as anexpense in the statement of financial performance when the finalauthorisation for payment is effected on the system (by no laterthan 31 March of each year).The expense is classified as capital if the goods and/or serviceswere acquired for a capital project or if the total purchase priceexceeds the capitalisation threshold (currently R5, 000). All otherexpenditures are classified as current.3.3 Financial transactions in assets and liabilitiesDebts are written off when identified as irrecoverable. Debtswritten-off are limited to the amount of savings and/orunderspending of appropriated funds. The write off occurs atyear-end or when funds are available. No provision is made forirrecoverable amounts but an estimate is included in the disclosurenotes to the financial statements amounts.All other losses are recognised when authorisation has beengranted for the recognition thereof.3.4 Transfers and subsidiesTransfers and subsidies are recognised as an expense when thefinal authorisation for payment is effected on the system (by nolater than 31 March of each year).3.5 Unauthorised expenditureWhen confirmed unauthorised expenditure is recognised as anasset in the statement of financial position until such time as theexpenditure is either approved by the relevant authority, recoveredfrom the responsible person or written off as irrecoverable in thestatement of financial performance.Unauthorised expenditure approved with funding is derecognisedfrom the statement of financial position when the unauthorisedexpenditure is approved and the related funds are received.Where the amount is approved without funding it is recognisedas expenditure in the statement of financial performance on thedate of approval.3.6 Fruitless and wasteful expenditureFruitless and wasteful expenditure is recognised as expenditurein the statement of financial performance according to the natureof the payment and not as a separate line item on the face of thestatement. If the expenditure is recoverable it is treated as anasset until it is recovered from the responsible person or writtenoff as irrecoverable in the statement of financial performance.3.7 Irregular expenditureIrregular expenditure is recognised as expenditure in the statementof financial performance. If the expenditure is not condoned bythe relevant authority it is treated as an asset until it is recoveredor written off as irrecoverable.4. Assets4.1 Cash and cash equivalentsCash and cash equivalents are carried in the statement of financialposition at cost.Bank overdrafts are shown separately on the face of the statementof financial position.For the purposes of the cash flow statement, cash and cashequivalents comprise cash on hand, deposits held, other shorttermhighly liquid investments and bank overdrafts.4.2 Prepayments and advancesAmounts prepaid or advanced are recognised in the statementof financial position when the payments are made and where thegoods and services have not been received by year end.Prepayments and advances outstanding at the end of the year arecarried in the statement of financial position at cost.4.3 ReceivablesReceivables included in the statement of financial position arise90 Treasury Annual Report 2009/10

04from cash payments made that are recoverable from anotherparty or from the sale of goods/rendering of services.Receivables outstanding at year-end are carried in the statementof financial position at cost plus any accrued interest. Amountsthat are potentials irrecoverable are included in the disclosurenotes.4.4 InventoryInventories that qualify for recognition must be initially reflectedat cost. Where inventories are acquired at no cost, or for nominalconsideration, their cost shall be their fair value at the date ofacquisition.All inventory items at year-end are reflected using the weightedaverage cost or FIFO cost formula.4.5 Capital assets4.5.1 Movable assets5. LiabilitiesInitial recognitionA capital asset is recorded on receipt of the item at cost.Cost of an asset is defined as the total cost of acquisition.Where the cost cannot be determined accurately, themovable capital asset is stated at fair value. Where fairvalue cannot be determined, the capital asset is includedin the asset register at R1.All assets acquired prior to 1 April 2002 are included inthe register R1.Subsequent recognitionSubsequent expenditure of a capital nature is recorded inthe statement of financial performance as “expenditurefor capital asset” and is capitalised in the asset register ofthe department on completion of the project.Repairs and maintenance is expensed as current “goodsand services” in the statement of financial performance.5.1 PayablesRecognised payables mainly comprise of amounts owing to othergovernmental entities. These payables are carried at cost in thestatement of financial position.5.2 CommitmentsCommitments are not recognised in the statement of financialposition as a liability or as expenditure in the statement of financialperformance but are included in the disclosure notes.5.3 AccrualsAccruals are not recognised in the statement of financial positionas a liability or as expenditure in the statement of financialperformance but are included in the disclosure notes.5.4 Employee benefitsShort-term employee benefits that give rise to a present legal orconstructive obligation are disclosed in the disclosure notes tothe financial statements. These amounts are not recognised in thestatement of financial performance or the statement of financialposition.5.5 Lease commitmentsFinance leaseFinance leases are not recognised as assets and liabilities in thestatement of financial position. Finance lease payments arerecognised as an expense in the statement of financial performanceand are apportioned between the capital and interest portions.The finance lease liability is disclosed in the disclosure notes to thefinancial statements.Operating leaseOperating lease payments are recognised as an expense inthe statement of financial performance. The operating leasecommitments are disclosed in the discloser notes to the financialstatement.6. Receivables for departmental revenueReceivables for departmental revenue are disclosed in thedisclosure notes to the annual financial statements.7. Net Assets7.1 Recoverable revenueAmounts are recognised as recoverable revenue when a paymentmade in a previous financial year becomes recoverable from adebtor in the current financial year. Amounts are either transferredto the National/Provincial Revenue Fund when recovered or aretransferred to the statement of financial performance whenwritten-off.8. Related party transactionsSpecific information with regards to related party transactions isincluded in the disclosure notes.9. Key management personnelCompensation paid to key management personnel including theirfamily members where relevant, is included in the disclosurenotes.Treasury Annual Report 2009/1091

Financial Statementsfor the year ended 31 March 2010NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20101. Annual Appropriation1.1 Annual AppropriationIncluded are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments(Voted funds) and Provincial Departments:FinalAppropriationActual FundsReceivedFunds notrequested/not receivedAppropriationreceived2008/09R’000 R’000 R’000 R’000Administration 48,984 48,984 41,460Sustainable Resource Management 83,843 83,843 106,987Financial Governance 44,470 44,470 42,582Total 177,297 177,297 191,0292. Departmental revenue2009/10 2008/09NoteR’000 R’000Tax revenueSales of goods and services other than capital assets 2.1 202 124Interest, dividends and rent on land 2.2 54,165 128,760Financial transactions in assets and liabilities 2.3 (4)Total revenue collected 54,367 128,880Less: Own revenue included in appropriation 11 - -Departmental revenue collected 54,367 128,8802.1 Sales of goods and services other than capital assets2009/10 2008/09NoteR’000 R’000Sales of goods and services produced by the department 2 202 124Other sales 202 124Sales of scrap, waste and other used current goodsTotal 202 1242.2 Interest, dividends and rent on land2009/10 2008/09NoteR’000 R’000Interest 2 54,165 128,760Total 54,165 128,76092 Treasury Annual Report 2009/10

042.3 Financial transactions in assets and liabilities2009/10 2008/09NoteR’000 R’000Stale cheques written back 2 - (4)Total - (4)3. Compensation of employees3.1 Salaries and Wages2009/10 2008/09R’000 R’000Basic salary 59,484 39,749Performance award 832 580Service Based 3,959 2,299Compensative/circumstantial 2,123 1,376Periodic payments 112 51Other non-pensionable allowances 10,659 8,826Total 77,169 52,8813.2 Social contributions2009/10 2008/09R’000 R’000Employer contributionsPension 7,646 5,091Medical 2,110 1,280Bargaining council 7 34Total 9,763 6,405Total compensation of employees 86,932 59,286Average number of employees 225 187Treasury Annual Report 2009/1093

Financial Statementsfor the year ended 31 March 20104. Goods and services2009/10 2008/09NoteR’000 R’000Administrative fees 1,879 1,797Advertising 1,228 2,530Assets less then R5,000 4.1 129 646Bursaries (employees) 1,307 644Catering 431 455Communication 2,449 13,476Computer services 4.2 18,877 494Consultants, contractors and agency/outsourced services 4.3 5,330 21,456Entertainment 56 380Audit cost – external 4.4 2,068 2,033Government motor transport 14Inventory 4.5 3,176 3,999Operating leases 2,126 1,162Travel and subsistence 4.6 1,713 5,582Venues and facilities 1,735 3,316Training and staff development 3,177 1,905Other operating expenditure 4.7 748 876Total 46,443 60,7514.1 Assets less than R5,0002009/10 2008/09NoteR’000 R’000Tangible assets 4Machinery and equipment 120 646Intangible assets 9Total 129 6464.2 Computer services2009/10 2008/09NoteR’000 R’000External computer service providers 4 18,877 494Total 18,877 49494 Treasury Annual Report 2009/10

044.3 Consultants, contractors and agency/outsourced services2009/10 2008/09NoteR’000 R’000Business and advisory services 4 3,720 16,891Legal costs 59 89Contractors 648 -Agency and support/outsourced services 903 4,476Total 5,330 21,4564.4 Audit cost – External2009/10 2008/09Note R’000 R’000Regularity audits 4 2,068 2,033Total 2,068 2,0334.5 Inventory2009/10 2008/09NoteR’000 R’000Food and food supplies 172 136Other consumable materials 47 72Maintenance material 42 191Stationery and printing 2,911 3,600Medical supplies 4 -Total 3,176 3,9994.6 Travel and subsistence2009/10 2008/09NoteR’000 R’000Local 1,528 4,620Foreign 185 962Total 1,713 5,5824.7 Other operating expenditure2009/10 2008/09R’000 R’000Professional bodies, membership and subscription fees 92 5Resettlement costs 346 650Storage Files 4 -Honoraria for Voluntary Workers 306 -Other - 221Total 748 876Treasury Annual Report 2009/1095

Financial Statementsfor the year ended 31 March 20105. Financial transactions in assets and liabilitiesNote 2009/10 2008/09R’000 R’000Debts written off 5.1 11 -Total 11 -5.1 Debts written off2009/10 2008/09NoteR’000 R’000Nature of debts written off 5Bad debts written off 11 -Total 11 -6. Transfers and subsidies2009/10 2008/09NoteR’000 R’000Provinces and municipalities Annex 1A - 1,551Departmental agencies and accounts Annex 1C 40,000 60,000Total 40,000 61,551Unspent funds transferred to the above beneficiaries - -7. Expenditure for capital assets2009/10 2008/09NoteR’000 R’000Tangible assetsMachinery and equipment 7.1 791 6,651Software and other intangible assetsComputer software 7.2 148 -Total 939 6,6517.1 Analysis of funds utilised to acquire capital assets – 2009/10Voted funds Aid assistance TotalR’000 R’000 R’000Tangible assets 791 - 791Machinery and equipment 791 - 791Software and other intangible assets 148 - 148Computer software 148 - 148Total 939 - 93996 Treasury Annual Report 2009/10

047.2 Analysis of funds utilised to acquire capital assets – 2008/09Voted funds Aid assistance TotalR’000 R’000 R’000Tangible assets 6,616 - 6,616Machinery and equipment 6,616 6,616Software and other intangible assets 35 - 35Computer software 35 - 35Total 6,651 - 6,6518. Cash and cash equivalents2009/10 2008/09NoteR’000 R’000Consolidated Paymaster General Account 3,651 2,400Total 3,651 2,4009. Receivables2009/2010 2008/09Less than oneyear Total TotalNote R’000 R’000 R’000Claims recoverable 9.1, Annex 4 2,402Recoverable expenditure 9.2 10Staff debt 9.3 77 77 225Total 77 77 2,6379.1 Claims recoverable2009/10 2008/09NoteR’000 R’000Provincial departments 9 - 2,402Total - 2,4029.2 Recoverable expenditure (disallowance accounts)2009/10 2008/09NoteR’000 R’000Salary: Disallowance - 10Total - 10Treasury Annual Report 2009/1097

Financial Statementsfor the year ended 31 March 20109.3 Staff debt2009/10 2008/09NoteR’000 R’000Salary tax Debt 9 5T&S Advance - 156Salary Recoverable 26 6Debt Acc 42 58Total 77 22510. Voted funds to be surrendered to the Revenue Fund2009/10 2008/09NoteR’000 R’000Opening balance 2,790 7,634Transfer from statement of financial performance 2,972 2,790Paid during the year (2,790) (7,634)Closing balance 2,972 2,79011. Departmental revenue to be surrendered to the Revenue Fund2009/10 2008/09NoteR’000 R’000Opening balance 1,430 3,775Transfer from Statement of Financial Performance 54,367 128,880Paid during the year (55,491) (131,225)Closing balance 306 1,43012. Payables – current2009/10 2008/09NoteR’000 R’000Amounts owing to other entities Annex 5 197 764Clearing accounts 12.1 159 35Other payables 12.2 94 18Total 450 81712.1 Clearing accounts2009/10 2008/09NoteR’000 R’000Salary: Income tax 12 33 30Salary: Pension Fund 1 1Salary: ACB Recalls - 4Salary: Persal EBT Control: Dom 125 -Total 159 3598 Treasury Annual Report 2009/10

0412.2 Other payables2009/10 2008/09NoteR’000 R’000Debt Receivable Income 12 26 17Debt Receivable Interest 1 1Outstanding Payments (invoices under 30days) 67 -Total 94 1813. Net cash flow available from operating activities2009/10 2008/09NoteR’000 R’000Net surplus/(deficit) as per Statement of Financial Performance 57,339 131,670Add back non cash/cash movements not deemed operating activities (55,149) (130,478)(Increase)/decrease in receivables – current 2,560 920Increase/(decrease) in payables – current (367) 810Expenditure on capital assets 939 6,651Surrenders to Revenue Fund (58,281) (138,859)Net cash flow generated by operating activities 2,190 1,19214. Reconciliation of cash and cash equivalents for cash flow purposes2009/10 2008/09NoteR’000 R’000Consolidated Paymaster General account 3,651 2,400Total 3,651 2,400Treasury Annual Report 2009/1099

Financial Statementsfor the year ended 31 March 2010DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2010These amounts are not recognised in the Annual Financial Statements and are disclosed to enhance the usefulness of the Annual FinancialStatements.1. Contingent liabilities and contingent assets1.1 Contingent liabilitiesLiable toNatureNote2009/10 2008/09R’000 R’000Housing loan guarantees Employees Annex 3A 175 52Total 175 522. Commitments2009/10 2008/09NoteR’000 R’000Current expenditureApproved and contracted 7,222 6,087Approved but not yet contracted 7,026 6,998Total Commitments 14,248 13,0853. Accruals2009/10 2008/09R’000 R’000Listed by economic classification 30 Days 30+ Days Total TotalGoods and services 410 410 521OtherTotal 410 410 5212009/10 2008/09NoteR’000 R’000Listed by sub programme levelProgramme 1: Office of the CFO 267 521Programme 1: Corporate Services 143Total 410 5212009/10 2008/09NoteR’000 R’000Interdepartmental BalancesConfirmed balances with other departments Annex 5 306 120Confirmed balances with other government entities Annex 5 479 644Total 785 764100 Treasury Annual Report 2009/10

044. Employee benefits2009/10 2008/09NoteR’000 R’000Leave entitlement 2,822 2,406Service bonus (Thirteenth cheque) 2,300 1,703Performance awards 857 941Capped leave commitments 731 886Total 6,710 5,9365. Lease commitments5.1 Operating leases expenditure2009/10 LandBuildings andother fixedstructuresMachinery andequipmentNot later than 1 year - 769 517 1,286Later than 1 year and not later than 5 years - - 275 275Total lease commitments - 769 792 1,561Total2008/09 LandBuildings andother fixedstructuresMachinery andequipmentNot later than 1 year - 769 821 1,590Later than 1 year and not later than 5 years - 709 - 709Total lease commitments - 1,478 821 2,299Total6. Key management personnelNo. ofIndividualsPolitical office bearers (MEC only) 1 1,209Officials:2009/10 2008/09R’000 R’000Level 15 to 16 2 2,306 2,796Level 14 (incl. CFO if at a lower level) 12 9,192 6,394Total 12,707 9,190Treasury Annual Report 2009/10101

Financial Statementsfor the year ended 31 March 20107. Movable Tangible Capital AssetsMovement in movable tangible capital assets per asset register for the year ended 31 March 2010OpeningbalanceCurr YearAdjust-mentsto prior yearbalances Additions Disposals Closing BalanceR’000 R’000 R’000 R’000 R’000Machinery and equipment 14,568 877 15,445Transport assets 521 35 556Computer equipment 6,779 794 7,573Furniture and office equipment 6,785 5 6,790Other machinery and equipment 483 43 526Total movable tangible capital assets 14,568 877 15,4457.1 AdditionsAdditions to movable tangible capital assets per asset register for the year ended 31 March 2010CashNon-cashCapital Workin ProgressReceivedcurrent, notpaidTotalR’000 R’000 R’000 R’000 R’000Machinery and equipment 791 86 877Transport assets 35 35Computer equipment 708 86 794Furniture and office equipment 5 5Other machinery and equipment 43 43Total additions to movable tangible capital assets 791 86 8777.2 Movement for 2008/09Movement in movable tangible capital assets per asset register for the year ended 31 March 2009Opening balance Additions Disposals Closing balanceR’000 R’000 R’000 R’000Machinery and equipment 7,952 6,616 - 14,568Transport assets - 521 - 521Computer equipment 3,048 3,731 - 6,779Furniture and office equipment 4,570 2,215 - 6,785Other machinery and equipment 334 149 - 483Total movable tangible assets 7,952 6,616 - 14,568102 Treasury Annual Report 2009/10

047.3 Minor assetsMinor assets of the department as at 31 March 2010IntangibleassetsHeritage assetsMachinery andequipmentBiologicalassetsTotalR’000 R’000 R’000 R’000 R’000Minor assets 9 - 121 - 130Total 9 - 121 - 130IntangibleassetsHeritage assetsMachinery andequipmentBiologicalassetsNumber of R1 minor assets 2 59 - 61Total number of minor assets 2 - 59 - 61TotalMinor assets of the department as at 31 March 2009IntangibleassetsHeritage assetsMachinery andequipmentBiologicalassetsTotalR’000 R’000 R’000 R’000 R’000Minor assets - - 2,470 - 2,470Total - - 2,470 - 2,4708. Intangible Capital AssetsMovement in intangible capital assets per asset register for the year ended 31 March 2010OpeningbalanceCurrent YearAdjust-mentsto prior yearbalances Additions Disposals Closing BalanceR’000 R’000 R’000 R’000 R’000Computer software 35 148 183Total intangible capital assets 35 148 1838.1 AdditionsAdditions to intangible capital assets per asset register for the year ended 31 March 2010CashNon-Cash(Developmentwork inprogress –current costs)Receivedcurrent year,not paidTotalR’000 R’000 R’000 R’000 R’000Computer software 148 148Total additions to intangible capital assets 148 1488.2 Movement for 2008/09Movement in intangible capital assets per asset register for the year ended 31 March 2009Opening balance Additions Disposals Closing balanceR’000 R’000 R’000 R’000Computer software 35 35Total intangible capital assets 35 35Treasury Annual Report 2009/10103

Financial Statementsfor the year ended 31 March 2010ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2010ANNEXURE 1AStatement of conditional grants and transfers to municipalitiesName ofmunicipalityNokeng tsa TaemaneKungwiniMetswedingEmfuleniMidvaalLesediSedibengMogale CityRandfonteinWestonariaWest RandGrant allocation Transfer Spent 2008/09% ofAvailablefundsTransferredAmountreceivedbymunicipalityAmountspent bymunicipality% ofavailablefundsspent bymunicipalityAmountRollOvers AdjustmentsTotalAvailableActualTransferTotalAvailableR’000 R’000 R’000 R’000 R’000 % R’000 R’000 % R’0001411411411411411411411411411411411,551ANNEXURE 1CStatement of transfers to departmental agencies and accountsDepartment/ Agency/ AccountAdjustedAppropriationTransfer allocation Transfer 2008/09RollOversAdjustmentsTotalAvailableActualTransfer% ofAvailablefunds AppropriationTransferred ActR’000 R’000 R’000 R’000 R’000 % R’000Gauteng Fund Project Office 40,000 40,000 40,000 100% 60,00040,000 40,000 40,000 100% 60,000ANNEXURE 1KStatement of gifts, donations and sponsorships made and remmissions, refunds and payments made as an act of grace2009/10 2008/09Nature of gift, donation or sponsorshipR’000 R’000Paid in cashUniversity of Johannesburg - 100Total - 100104 Treasury Annual Report 2009/10

04ANNEXURE 3AStatement of financial guarantees issued as at 31 march 2010 – localGuarantorGuarantee inOriginalguaranteedcapitalamountOpeningbalance1 April 2009Guaranteesdraw downsduring theyearGuaranteesrepayments/cancelled/reduced/releasedduring theyear RevalutionsClosingbalance31 March2010Guaranteedinterest foryear ended31 March2010Realisedlosses notrecoverablei.e. claimspaid outinstitutionrespect of Housing R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Standard Pietersen S 34 34 34Nedbank Mohosho L 18 18 18ABSA Mosimane K 82 82 82ABSA Dhlamini Q 75 75 75Total 209 52 157 34 175ANNEXURE 4Claims recoverableGovernment EntityConfirmed balanceoutstandingUnconfirmedbalance outstandingTotal31/03/2010 31/03/2009 31/03/2010 31/03/2009 31/03/2010 31/03/2009R’000 R’000 R’000 R’000 R’000 R’000Gauteng Fund Project Office 549 549Executive Fire Management 26 26GSSC 13 13Department of Economic Development 2,402 2,402Total 562 2,402 26 588 2,402Treasury Annual Report 2009/10105

Financial Statementsfor the year ended 31 March 2010ANNEXURE 5Inter-government payablesGovernment EntityConfirmed balanceoutstandingUnconfirmedbalance outstandingTotal31/03/2010 31/03/2009 31/03/2010 31/03/2009 31/03/2010 31/03/2009R’000 R’000 R’000 R’000 R’000 R’000DepartmentsGSSC 5 77 5 77KZN Treasury 43 43Economic D 301 301Other government entitiesPALAMA 280 226 280 226SAPS 1 1Kopanong Precinct 123 266 123 266G Fleet 75 152 75 152Sub-Total 785 764 785 764Receivables (Annexure 4) (562) (2,402) (26) (588) (2,402)Total 223 (1,638) (26) 197 (1,638)ANNEXURE 6InventoryNote Quantity 2009/10R’000InventoryOpening balance 475Add/(Less): Adjustments to prior year balanceAdd: Additions/Purchases – Cash 727Add: Additions - Non-cash(Less): Disposals(Less): IssuesAdd/(Less): Adjustments (402)Closing balance - 800106 Treasury Annual Report 2009/10

04Treasury Annual Report 2009/10107

108 Treasury Annual Report 2009/10

Section Five05OVERSIGHT REPORTTreasury Annual Report 2009/10109

Section FiveOversight report1. Service deliveryAll departments are required to develop a Service Delivery Improvement (SDI) Plan. The following tables reflect the components of the SDIplan as well as progress made in the implementation of the plans.KEYSERVICEAllocatingresourcesin line withprovincialgovernmentpriorities and5 year plansSERVICEBENEFICIARYGPGdepartmentsand agenciesCURRENT STANDARDQuantity Tableadjustmentsbudget inNovemberand mainbudget inFebruaryApproximatecirculation of1000 copies)QualityConsultationReactiveprocess whichis driven byTreasury’sannualconsultationswithdepartmentalbudgetsubmissionsQuantityQualityConsultationDESIRED STANDARD09/10 10/11 11/12Table adjustmentsbudget inNovember andmain budgetin February(Approximatecirculation of 1000copies)Reactive processwhich is driven byTreasury’s annualconsultations withdepartmentalbudget submissionsStrict adherence toprescribed budgetprocesses andNational TreasurydeadlinesUse budgetbilaterals andforums to informthe developmentof departmentalbudgets andalignment tonational andprovincial prioritiesProactiveconsultationprocess, whichincludes: monthlymeetings bypublic financespecialists to helpdepartmentsstrengthen budgetbids and the qualityof budgetarysubmissions.Strict adherence toprescribed budgetprocesses andNational TreasurydeadlinesUse budgetbilaterals andforums to informthe developmentof departmentalbudgets andalignment tonational andprovincial prioritiesProactiveconsultationprocess, whichincludes: monthlymeetings bypublic financespecialists to helpdepartmentsstrengthen budgetbids and the qualityof budgetarysubmissions.AccessCourtesyDepartments/clients haveaccess viae-mail,telephoneand one-ononemeetingsorconsultationsClientsare alwaystreated withconsiderationand respectAccessCourtesyDepartments/clients haveaccess via e-mail,telephone andone-on-onemeetings orconsultationsClients are alwaystreated withconsideration andrespectConduct an annualevaluation todetermine whethersector support iseffectiveIncrease accessvia Treasury’s newwebsite, additionalto access viae-mail, telephoneand one-on-onemeetings orconsultationsClients are alwaystreated withconsideration andrespectConduct an annualevaluation todetermine whethersector support iseffectiveIncrease accessvia Treasury’s newwebsite, additionalto access viae-mail, telephoneand one-on-onemeetings orconsultationsClients are alwaystreated withconsideration andrespect110 Treasury Annual Report 2009/10

05KEYSERVICESERVICEBENEFICIARYCURRENT STANDARDOpen &TransparencyInformationRedressValue forMoneyTimeClearguidelines areprovided todepartments(reportingtemplates,preparationannualfinancialstatements)Departmentsfurtherknow who isresponsiblefor servicedelivery inthe differentdepartmentsFinally,employeesare heldaccountablethroughquarterlyand annualreports andperformancereviewsRequests foreconomicand financialinformationarerespondedto within 2weeksAd hoc.Whenrequired thedepartmentengagesappropriaterepresentationAdvisedepartments’on fruitlessand wastefulexpenditure31 March2010Open &TransparencyInformationRedressValue forMoneyDESIRED STANDARD09/10 10/11 11/12Clear guidelinesare provided todepartments(reportingtemplates,preparation annualfinancial statementsDepartmentsfurther know whois responsible forservice deliveryin the differentdepartmentsFinally, employeesare heldaccountablethrough quarterlyand annual reportsand performancereviewsRequests foreconomicand financialinformation areresponded towithin 2 weeksAd hoc. Whenrequired thedepartmentengagesappropriaterepresentationAdvisedepartments’on fruitlessand wastefulexpenditureClear guidelinesare provided todepartments(reportingtemplates,preparationannual financialstatements)Departmentsfurther know whois responsible forservice deliveryin the differentdepartmentsFinally, employeesare heldaccountablethrough quarterlyand annual reportsand performancereviewsRequests foreconomicand financialinformation areresponded towithin 1 weekAd hoc. Whenrequired thedepartmentengagesappropriaterepresentationConduct annualefficiency gainsanalysisClear guidelinesare provided todepartments(reportingtemplates,preparationannual financialstatements)Departmentsfurther know whois responsible forservice deliveryin the differentdepartmentsFinally, employeesare heldaccountablethrough quarterlyand annual reportsand performancereviewsRequests foreconomicand financialinformation areresponded towithin 1 weekAd hoc. Whenrequired thedepartmentengagesappropriaterepresentationConduct annualefficiency gainsanalysisTime 31 March 2010 31 March 2011 31 March 2012Cost R 9 621 Cost R 9 621 R 10 278 R 10 761Human 15 Human 20 20 20ResourcesResourcesTreasury Annual Report 2009/10111

Section FiveOversight reportKEYSERVICEFacilitate bestaccounting,risk , assetand cashmanagementpracticesSERVICEBENEFICIARYGautengprovincialdepartmentsand provincialpublic entitiesCURRENT STANDARDQuantity All requestsfor assistanceattended towithin 48hoursQualityConsultation Proactiveprocessthroughtelephone,e-mail,personalvisits andworkshopsAccess Deparments/clients haveaccess viae-mail,telephoneand one-ononemeetingsorconsultationsCourtesy Clientsare alwaystreated withconsiderationand respectOpen &TransparencyInformationClearguidelines areprovided todepartmentsand entitiesDepartmentsfurtherknow who isresponsiblefor servicedeliveryFinally,employeesare heldaccountablethroughquarterlyand annualreports andperformancereviewsRequests forinformationarerespondedto within 1weekQuantityQualityConsultationAccessCourtesyOpen &TransparencyInformationDESIRED STANDARD09/10 10/11 11/12All requests forassistance attendedto within 48 hoursProactiveprocess throughtelephone, e-mail,personal visits andworkshopsDepartments/clients haveaccess via e-mail,telephone andone-on-onemeetings orconsultationsClients are alwaystreated withconsideration andrespectClear guidelinesare provided todepartments andentitiesDepartmentsfurther know whois responsible forservice deliveryFinally, employeesare heldaccountablethrough quarterlyand annual reportsand performancereviewsRequests forinformation areresponded towithin 1 weekAll requests forassistance attendedto within 48 hoursProactive processthrough telephone,e-mail, personalvisits, workshopsand road showsDepartments/clients haveaccess via e-mail,telephone andone-on-onemeetings orconsultationsClients are alwaystreated withconsideration andrespectClear guidelinesare provided todepartments andentitiesDepartmentsfurther know whois responsible forservice deliveryFinally, employeesare heldaccountablethrough quarterlyand annual reportsand performancereviewsRequests forinformation areresponded towithin 5 daysAll requests forassistance attendedto within 48 hoursProactive processthrough telephone,e-mail, personalvisits, workshopsand road showsDepartments/clients haveaccess via e-mail,telephone andone-on-onemeetings orconsultationsClients are alwaystreated withconsideration andrespectClear guidelinesare provided todepartments andentities.Departmentsfurther know whois responsible forservice deliveryFinally, employeesare heldaccountablethrough quarterlyand annual reportsand performancereviewsRequests forinformation areresponded towithin 5 days112 Treasury Annual Report 2009/10

05KEYSERVICESERVICEBENEFICIARYCURRENT STANDARDRedress Explainreason fordelays uponrequestValue forMoneyTimeAdvise ona daily basiswhen requestfor cashallocation arenot accordingto projections31 March2010RedressValue forMoneyDESIRED STANDARD09/10 10/11 11/12Explain reasonfor delays uponrequestAdvise on a dailybasis when requestfor cash allocationare not accordingto projectionsExplain reason fordelays as it occursAdvise on a dailybasis when requestfor cash allocationare not accordingto projectionsExplain reason fordelays as it occursAdvise on a dailybasis when requestfor cash allocationare not accordingto projectionsTime 31 March 2010 31 March 2011 31 March 2012Cost R 36 036 Cost R 36 036 R38133 R39 925Human 58 Human 58 58 58ResourcesResourcesKEYSERVICEProvideguidance andlead theimplementationoffinancialmanagementreforms forbothprovincial andlocalgovernmentSERVICEBENEFICIARYGPGdepartments,publicentities andmunicipalitiesCURRENT STANDARDQuantity Monthly,quarterly andas requiredQualityConsultation As dictatedby thesituationAccessE-mail,telephone &walk inQuantityQualityConsultationAccessDESIRED STANDARD09/10 10/11 11/12Monthly, quarterlyand as requiredAs dictated by thesituationE-mail, telephone &walk in12 monthly and 4quarterly reportsEfficient use of theCFO forum as wellas direct and proactiveconsultationthrough e-mail,personal visits,workshops androad showsDepartments/clients haveaccess via e-mail,telephone and oneon-onemeetings/consultationsCourtesy As required Courtesy As required Clients are alwaystreated withconsideration andrespect.12 monthly and 4quarterly reportsEfficient use of theCFO forum as wellas direct and proactiveconsultationthrough e-mail,personal visits,workshops androad showsDepartments/clients haveaccess via e-mail,telephone and oneon-onemeetings/consultationsClients are alwaystreated withconsideration andrespect.Treasury Annual Report 2009/10113

Section FiveOversight reportKEYSERVICESERVICEBENEFICIARYCURRENT STANDARDOpen &TransparencyDetailedinformationis being madeavailable onrequest andperiodicallyOpen &TransparencyDESIRED STANDARD09/10 10/11 11/12Detailedinformation is beingmade availableon request andperiodicallyClear guidelinesare provided todepartments andentities.Departmentsfurther know whois responsible forservice deliveryFinally, employeesare heldaccountablethrough quarterlyand annual reportsand performancereviewsInformation As required Information As required Via the formalreportingmechanism as wellthe website andother TreasurybulletinsRequests forinformation areresponded towithin 5 workingdaysRedressValue forMoneyAs requiredand ifpermissibleWithinbudgetRedressValue forMoneyAs required and ifpermissibleWithin budgetExplain reason fordelays as it occurs.Within budget andmaximum valueand efficiency to beachievedClear guidelinesare provided todepartments andentities.Departmentsfurther know whois responsible forservice deliveryFinally, employeesare heldaccountablethrough quarterlyand annual reportsand performancereviewsVia the formalreportingmechanism as wellthe website andother TreasurybulletinsRequests forinformation areresponded towithin 5 workingdaysExplain reason fordelays as it occursWithin budget andmaximum valueand efficiency to beachievedTime 31 March Time 31 March 2010 31 March 2011 31 March 20122010Cost R 14 018 Cost R 14 018 R 14 745 R 15 438HumanResources28 HumanResources28 28 28114 Treasury Annual Report 2009/10

052. ExpenditureDepartments budget in terms of clearly defined programmes. The following tables summarise final audited expenditure by programme and bysalary bands. In particular, it provides an indication of the amount spent on personnel costs in terms of each of the programmes or salary bandswithin the department.2.1 Personnel costs by programme, 2009/2010ProgrammeTotal Expenditure(R’000)PersonnelExpenditure(R’000)TrainingExpenditure(R’000)Personnel cost asa percent of totalexpenditureAverage personnelcost per employee(R’000)Administration 48,705 26,886 0 55.2 16Sustainable Resource Management 81,145 36,381 0 44.80 22Financial governance 44,470 23,664 0 53.20 142.2 Personnel costs by salary bands, 2009/2010Salary bandsPersonnelExpenditure(R’000)% of totalpersonnel costAverage personnelcost per employee(R’000)Lower skilled (levels 1-2) 275 0.3 68,750Skilled (levels 3-5) 1,189 1.2 99,083Highly Skilled (level 6-8) 10,349 10.7 178,431Highly Skilled (level 9-12) 46,186 47.7 366,556Senior Management(level 13-16) 27,045 27.9 711,711Contract ( Level 1-2 ) 929 1 48,895Contract ( Level 3-5 ) 127 0.1 127,000Contract ( Level 6-8 ) 632 0.7 210,667Contract ( Level 9-12 ) 3,346 3.5 334,600Contract ( Level 13-16 ) 5,207 5.4 743,857Periodic Payments 476 0.5 16,414Abnormal Appointments 133 0.1 19,000The following tables provide a summary per programme and salary bands of expenditure incurred as a result of salaries, overtime, home ownersallowance and medical assistance. In each case, the table provides an indication of the percentage of the personnel budget that was used forthese items.2.3 Salaries, Overtime, Home Owners Allowance and Medical Assistance by programme, 2009/2010ProgrammeAmount(R’000)Salaries Overtime Home Owners Allowance Medical AssistanceSalariesas a % ofpersonnelcostAmount(R’000)Overtimeas a % ofpersonnelcostAmount(R’000)HOA as a %of personnelcostAmount(R’000)MedicalAssistanceas a % ofpersonnelcostAdministration 18,351 21 1 0.002 510 0.6 745 0.86Sustainable ResourceManagement25,005 29 63 0.072 463 0.5 924 1.1Financial Governance 16,128 19 345 0.4 441 0.5Treasury Annual Report 2009/10115

Section FiveOversight report2.4 Salaries, Overtime, Home Owners Allowance and Medical Assistance by salary bands, 2009/2010Salary BandsAmount(R’000)SalariesSalariesas a % ofpersonnelcostAmount(R’000)OvertimeOvertimeas a % ofpersonnelcostHome OwnersAllowanceAmount(R’000)HOA asa % ofpersonnelcostMedical AssistanceAmount(R’000)MedicalAssistanceas a % ofpersonnelcostLower skilled (Level 1-2) 203 73.80 0 0 16 5.8 21 7.6Skilled (Level 3-5) 848 71.3 0 0 64 5.4 73 6.1Highly Skilled production(Level 6-8)Highly Skilled supervision(Level 9-12)Senior Management(Level 13-16)7,743 74.80 0 0 225 2.2 593 5.737,168 79.50 63 0.1 351 0.8 1059 2.322,713 83.10 0 0 481 1.8 349 1.3Contract (Level 1-2) 905 97 0 0 2 0.2 14 1.5Contract (Level 3-5) 78 60 0 0 0 0 0 0Contract (level 6-8) 628 99.4 0 0 0 0 0 0Contract (level 9-12) 3,240 96.4 0 0 12 0.4 10 0.3Contract (Level 13-16) 4,660 89 0 0 206 3.9 0 0Periodical Remuneration 16 3.4 0 0 0 0 0 0Abnormal Appointment 104 78.2 0 0 0 0 0 0Salary BandsAmount(R’000)SalariesSalariesas a % ofpersonnelcostAmount(R’000)OvertimeOvertimeas a % ofpersonnelcostHome OwnersAllowanceAmount(R’000)HOA asa % ofpersonnelcostMedical AssistanceAmount(R’000)MedicalAssistanceas a % ofpersonnelcostLower skilled (Level 1-2) 203 73.80 0 0 16 5.8 21 7.6Skilled ( Level 3-5 ) 848 71.3 0 0 64 5.4 73 6.1Highly Skilled production(Level 6-8)Highly Skilled supervision Level(9-12)Senior Management(Level 13-16)7,743 74.80 0 0 225 2.2 593 5.737,168 79.50 63 0.1 351 0.8 1059 2.322,713 83.10 0 0 481 1.8 349 1.3Contract (Level 1-2) 905 97 0 0 2 0.2 14 1.5Contract (Level 3-5) 78 60 0 0 0 0 0 0Contract (level 6-8) 628 99.4 0 0 0 0 0 0Contract (level 9-12) 3,240 96.4 0 0 12 0.4 10 0.3Contract (level 13-16) 4,660 89 0 0 206 3.9 0 0Periodical Remuneration 16 3.4 0 0 0 0 0 0Abnormal Appointment 104 78.2 0 0 0 0 0 0116 Treasury Annual Report 2009/10

053. Employment and VacanciesThe following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there areany staff that are additional to the establishment. This information is presented in terms of three key variables: - programme, salary band andcritical occupations. The vacancy rate reflects the percentage of posts that are not filled.3.1 Employment and vacancies by programme, 31 March 2010ProgrammeNumber of postsNumber ofposts filledVacancy RateNumber of postsfilled additional tothe establishmentGauteng Treasury 260 215 17.32 1Project Office 83 63 24.1 36Total 343 278 19 373.2 Employment and vacancies by salary bands, 31 March 2010Salary bandNumber of postsNumber of postsfilledVacancy RateNumber of postsfilled additional tothe establishmentLower Skilled (levels 1 - 2), Permanent 11 4 63.6 0Skilled (levels 3 – 5), Permanent 15 12 20 0Highly Skilled Production (Levels 6 – 8), Permanent 73 58 20.5 0Highly Skilled Supervision (Levels 9 – 12), Permanent 161 126 21.7 2Snr Management (Levels 13 – 16), Permanent 43 38 11.6 3Contract (Levels 1 – 2), Permanent 19 19 0 18Contract (Levels 3 – 5), Permanent 1 1 0 0Contract (Levels 6 - 8), Permanent 3 3 0 3Contract (Levels 9 - 12), Permanent 10 10 0 8Contract (Levels 13 - 16), Permanent 7 7 0 3Total 343 278 19 37Treasury Annual Report 2009/10117

Section FiveOversight report3.3 Employment and vacancies by critical occupation, 31 March 2010Critical occupationsNumber of postsNumber ofposts filledVacancy RateNumber of postsfilled additional tothe establishmentAdministrative Related, Permanent 20 18 10 3Communication & Information Related, Permanent 6 5 16.7 0Computer Systems Designers and analysts, Permanent 1 0 100 0Economists, Permanent 8 8 0 0Finance & Economics Related, Permanent 57 45 21.1 1Financial & Related Professionals, Permanent 78 69 11.5 6Food Service Aids & Waiters, Permanent 6 6 0 1Head of Department/chief executive officers, Permanent 3 3 0 1Housekeepers Laundry and related workers, Permanent 2 2 0 0Human Resources & Organisation Development &Related, Permanent15 11 26.7 0Human Resource Clerks, Permanent 36 25 30.6 20Human Resources Related, Permanent 3 2 33.3 0Information Technology Related, Permanent 1 1 0 0Library Mail & Related Clerks, Permanent 5 3 40 0Messengers, Porters & Deliverers, Permanent 6 6 0 1Other information technology personnel, Permanent 6 4 33.3 0Other Occupations, Permanent 1 1 0 0Secretaries & Other Keyboard Operating Clerks,Permanent37 29 21.6 1Senior Managers, Permanent 52 40 23.1 3Total 343 278 19 37The information in each case reflects the situation as at 31 March 2009. For an indication of changes in staffing patterns over the year underreview, please refer to section 5 of this report.4. Job EvaluationThe Public Service Regulations, 1999 introduced job evaluation as a way of ensuring that work of equal value is remunerated equally. Withina nationally determined framework, executing authorities may evaluate or re-evaluate any job in his or her organisation. In terms of theRegulations all vacancies on salary levels 9 and higher must be evaluated before they are filled. This was complemented by a decision by theMinister for the Public Service and Administration that all SMS jobs must be evaluated before 31 December 2002.The following table summarises the number of jobs that were evaluated during the year under review. The table also provides statistics on thenumber of posts that were upgraded or downgraded.118 Treasury Annual Report 2009/10

054.1 Job Evaluation, 2009/2010Salary bandNumber ofpostsNumberof JobsEvaluated% of postsevaluatedby salarybands Posts Upgraded Posts downgradedNumber% of postsevaluatedNumber% of postsevaluatedLower Skilled (Level 1 – 2) 11 0 0 0 0 0 0Contract (Levels 1 – 2) 19 0 0 0 0 0 0Contract (Levels 3 – 5) 1 0 0 0 0 0 0Contract (Levels 6 – 8) 3 0 0 0 0 0 0Contract (Levels 9 – 12) 10 0 0 0 0 0 0Contract (Band A) 3 0 0 0 0 0 0Contract (Band B) 2 0 0 0 0 0 0Contract (Band C) 2 0 0 0 0 0 0Skilled (Levels 3 – 5) 15 0 0 0 0 0 0Highly Skilled Production (Levels 6 – 8) 73 1 1.4 0 0 0 0Highly Skilled Supervision (Levels 9 – 12) 161 7 4.3 0 0 1 14.3Senior Management Service Band A 26 0 0 0 0 0 0Senior Management Service Band B 12 0 0 0 0 0 0Senior Management Service Band C 2 0 0 0 0 0 0Senior Management Service Band D 3 0 0 0 0 0 0Total 343 8 2.3 0 0 1 12.5The following table provides a summary of the number of employees whose salary positions were upgraded due to their posts being upgraded.The number of employees might differ from the number of posts upgraded since not all employees are automatically absorbed into the newposts and some of the posts upgraded could also be vacant.4.2 Profile of employees whose salary positions were upgraded due to their posts being upgraded, 2009/2010Beneficiaries African Asian Coloured White TotalNA NA NA NA NA NAThe following table summarises the number of cases where remuneration levels exceeded the grade determined by job evaluation. Reasonsfor the deviation are provided in each case.Total Number of Employees whose salaries exceeded the grades determined by job evaluation in 2009/2010NA NA NA NA NA NANoneTreasury Annual Report 2009/10119

Section FiveOversight report5. Employment ChangesThis 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 ofturnover rates by salary band and by critical occupations.5.1 Annual turnover rates by salary band for the period 2009/2010Salary BandNumber ofemployees perband as on1 April 2009Appointments andtransfers into thedepartmentTerminations andtransfers out ofthe departmentTurnover rateLower Skilled (Level 1 – 2), Permanent 3 3 0 0Skilled (Level 3 – 5), Permanent 10 1 0 0Highly Skilled Production (Level 6 – 8), Permanent 42 5 0 0Highly Skilled Supervision (Level 9 – 12), Permanent 111 11 6 5.4Senior Management Band A, Permanent 24 0 1 4.2Senior Management Band B, Permanent 12 0 0 0Senior Management Band C, Permanent 1 0 0 0Senior Management Band D, Permanent 17 0 0 0Contract (Level 1 – 2), Permanent 2 26 17 850Contract (Level 3 – 5), Permanent 1 2 1 100Contract (Level 6 – 8), Permanent 4 6 3 75Contract (Level 9 – 12), Permanent 9 9 3 33.3Contract (Band A), Permanent 3 3 2 66.7Contract (Band B), Permanent 0 2 0 0Contract (Band C), Permanent 1 2 0 0Contract (Band D), Permanent 2 3 3 150Total 242 37 36 14.9120 Treasury Annual Report 2009/10

055.2 Annual turnover rates by critical occupation for the period 2009/2010OccupationNumber ofemployees peroccupation as on1 April 2009Appointments andtransfers into thedepartmentTerminations andtransfers out ofthe departmentTurnover rateAdministrative Related, Permanent 9 4 0 0Client Information Clerks (Switchboard ReceptionInformation Clerks)1 0 0 0Communication & Information Related 1 1 0 0Economists, Permanent 12 0 0 0Finance & Economics Related, Permanent 73 5 5 6.8Finance & Related Professionals, Permanent 34 7 3 8.8Financial Clerks & Credit Controllers, Permanent 3 0 0 0Food Service Aids & Waiters, Permanent 5 6 1 20Head of Department/Chief Executive Officer, Permanent 4 3 4 100Human Resources & Organisation Development &Related, Permanent19 2 2 10.5Human Resources Clerks, Permanent 20 27 18 90Human Resources Related, Permanent 8 1 0 0Language Practitioners Interpreters & Othercommunication, Permanent2 0 0 0Library Mail & Related Clerks, Permanent 4 1 0 0Messengers, Porters & Deliverers, Permanent 5 4 0 0Other Information Technology Personnel 2 2 0 0Other occupations, Permanent 3 0 0 0Secretaries & Other Keyboard Operating Clerks,Permanent18 3 1 5.6Senior Managers, Permanent 19 7 2 10.5Total 242 73 36 14.95.3 Reasons why staff are leaving the departmentTermination Type Number % of totalDeath, Permanent 1 2.8%Resignation, Permanent 17 47.2%Contract Expiry 18 50%Total 36 100%Resignations as % of employment 14.9%Treasury Annual Report 2009/10121

Section FiveOversight report5.4 Promotions by critical occupationOccupationEmployees as at1 April 2009Promotionsto anothersalary levelSalary levelpromotions as a %of employees byoccupationProgressions toanother notchwithin a salarylevelNotchprogressions as a% of employees byoccupationAdministrative Related, Permanent 9 5 55.6 1 11.1Client Information Clerks(Switchboard Reception1 0 0 1 100Information Clerks)Communication & InformationRelated1 0 0 1 100Economists, Permanent 12 1 8.3 5 41.7Finance & Economics Related,Permanent73 7 9.6 33 45.2Finance & Related Professionals,Permanent34 9 26.5 15 44.1Financial Clerks & CreditControllers, Permanent3 0 0 1 33.3Food Service Aids & Waiters,Permanent5 0 0 1 20Head of Department/ChiefExecutive Officer, Permanent4 0 0 0 0Human Resources & OrganisationDevelopment & Related,19 5 26.3 2 10.5PermanentHuman Resources Clerks,Permanent20 2 10 1 5Human Resources Related,Permanent8 1 12.5 3 37.5Language Practitioners Interpreters& Other communication,2 0 0 1 50PermanentLibrary Mail & Related Clerks,Permanent4 0 0 0 0Messengers, Porters & Deliverers,Permanent5 0 0 1 20Other administrative policy andrelated officers, Permanent0 1 0 0 0Other Information TechnologyPersonnel2 0 0 0 0Other occupations, Permanent 3 0 0 0 0Secretaries & Other KeyboardOperating Clerks, Permanent18 7 38.9 5 27.8Security Officers 0 1 0 0 0Senior Managers, Permanent 19 3 15.8 10 52.6Total 242 42 17.4 81 33.5122 Treasury Annual Report 2009/10

055.5 Promotions by salary bandSalary BandEmployees 1 April2009Promotions toanother salarylevelSalary bandspromotions as a %of employees bysalary levelProgressions toanother notchwithin a salarylevelNotchprogressions as a% of employees bysalary bandLower Skilled (Level 1 – 2),Permanent3 0 0 1 33.3Skilled (Level 3 – 5), Permanent 10 2 20 3 30Highly Skilled Production (Level 6 –8), Permanent42 16 38.1 13 31Highly Skilled Supervision (Level9 – 12), Permanent111 19 17.1 45 40.5Senior Management (Level2 13-16), Permanent37 3 8.1 19 51.4Other, Permanent 17 0 0 0 0Contract (Level 1 – 2), Permanent 2 1 50 0 0Contract (Level 3 – 5), Permanent 1 0 0 0 0Contract (Level 6 – 8), Permanent 4 0 0 0 0Contract (Level 9 – 12), Permanent 9 1 11.1 0 0Contract (Level 13 - 16),Permanent6 0 0 0 0Total 242 42 17.4 81 33.5Treasury Annual Report 2009/10123

Section FiveOversight report5.6 Filling of SMS posts5.6.1 SMS posts information as on 30 September 2009SMS levelTotal Number ofFunded SMS Postsper LevelTotal Number ofSMS posts Filledper Level% of SMS PostsFilled per LevelTotal Number ofSMS posts Vacantper Level% of SMS PostsVacant per LevelDirector General/ Head ofDepartment1 1 100% 0 0%Salary Level 16 (but not HOD) 1 1 100% 0 0%Salary Level 15 6 2 33.33% 4 66.66%Salary Level 14 14 13 92.8% 1 7.14%Salary Level 13 37 22 59% 15 40%Total 59 39 60.2% 20 33.89%5.6.2 SMS posts information as on 31 March 2010SMS levelTotal Number ofFunded SMS Postsper LevelTotal Number ofSMS posts Filledper Level% of SMS PostsFilled per LevelTotal Number ofSMS posts Vacantper Level% of SMS PostsVacant per LevelDirector General/ Head ofDepartment1 1 100% 0 0%Salary Level 16 (but not HOD) 1 1 100% 0 0%Salary Level 15 6 5 83.33% 1 16.66%Salary Level 14 14 13 92.85% 1 7.14%Salary Level 13 37 26 70.2% 11 29.7%Total 59 46 77.96% 13 22.03%5.6.3 Reasons for not having complied with the filling of funded vacant SMS posts – Advertised within 6 months and filled within 12months after becoming vacantAll vacant positions have been advertised.6. Employment EquityThe tables in this section are based on the formats prescribed by the Employment Equity Act, 55 of 1998.6.1 (a) Total number of employees (including employees with disabilities) in each of the following occupational categories as on31 March 2010Occupational categoriesMaleFemaleAfrican Coloured Indian White African Coloured Indian WhiteLegislators, Snr Officials &Managers, Permanent16 1 0 1 5 0 1 1 25Professionals, Permanent 56 7 3 5 78 9 2 6 166Technicians and associatedprofessionals, Permanent4 1 1 1 10 1 0 1 19Clerks, Permanent 15 2 1 1 24 2 1 3 49Service and Sales Workers,Permanent2 2Elementary Occupations 8 1 0 0 8 17Total 99 12 5 8 127 12 4 11 278Total124 Treasury Annual Report 2009/10

056.1 (b) Total number of employees with disabilities in each of the following occupational categories as on 31 March 2010Occupational categoriesMaleFemaleAfrican Coloured Indian White African Coloured Indian WhiteProfessionals 1 0 0 0 0 0 0 0 1Clerks 0 0 0 0 2 0 0 0 2Total 1 0 0 0 2 0 0 0 36.2 (a) Total number of employees (including employees with disabilities) in each of the following occupational bands as on31 March 2010Occupational Bands Male FemaleAfrican Coloured Indian White African Coloured Indian WhiteTop Management, Permanent 3 1 4Snr Management, Permanent 14 4 1 1 12 2 34Professionally qualified andexperienced specialists, Permanent45 4 3 5 61 6 2 4 130Skilled Technical & AcademicallyQualified workers, Permanent20 2 1 0 30 4 1 3 61Semi-Skilled & DiscretionaryDecision-making, Permanent9 4 1 14Contract (Top Management)Permanent1 1 2Contract (Senior Management)Permanent3 1 1 2 5Contract (Professionally Qualified)Permanent2 1 6 1 1 11Contract (Skilled technical)Permanent1 1 2Contract (Semi-skilled) Permanent 1 1Contract (Unskilled) Permanent 1 1 7 1 10Total 99 12 5 8 127 12 4 11 2786.2 (b) Total number of employees (including employees with disabilities) in each of the following occupational bands as on31 March 2010Occupational BandsMaleFemaleAfrican Coloured Indian White African Coloured Indian WhiteSkilled Technical 1 0 0 0 1 0 0 0 2Semi-Skilled 0 0 0 0 1 0 0 0 1Total 1 0 0 0 2 0 0 0 3TotalTotalTotalTreasury Annual Report 2009/10125

Section FiveOversight report6.3 Recruitment for the period 2009/2010Occupational BandsMaleFemaleAfrican Coloured Indian White African Coloured Indian WhiteProfessionally qualified andexperienced specialists, Permanent2 1 1 5 1 1 11Skilled Technical & AcademicallyQualified workers, Permanent3 0 2 5Semi-Skilled & DiscretionaryDecision-making, Permanent1 0 0 1Unskilled and defined decisionmaking, Permanent0 0 3 3Contract (Top Management)Permanent1 1 1 2 5Contract (Senior Management)Permanent3 0 1 1 5Contract (Professionally Qualified)Permanent3 0 5 1 9Contract (Skilled technical)Permanent0 1 5 6Contract (Semi-skilled) Permanent 1 0 1 2Contract (Unskilled) Permanent 6 0 1 18 1 26Total 20 3 1 1 41 3 1 3 736.4 Promotions for the period 2009/2010Occupational BandsMaleFemaleAfrican Coloured Indian White African Coloured Indian WhiteTop Management, permanent 1 0 0 0 0 0 0 0 1Snr Management, Permanent 8 2 2 0 0 0 0 2 21Professionally qualified andexperienced specialists, Permanent21 1 2 2 4 4 1 1 64Skilled Technical & AcademicallyQualified workers, Permanent8 1 0 0 3 3 0 2 29Semi-Skilled & DiscretionaryDecision-making, Permanent2 0 0 0 1 1 0 0 5Unskilled and defined decisionmaking, Permanent0 0 0 0 0 0 0 0 1Contract (Professionally Qualified)Permanent1 0 0 0 0 0 0 0 1Contract (Unskilled) Permanent 0 0 0 0 0 0 0 0 1Total 41 4 4 2 8 8 1 5 123TotalTotal126 Treasury Annual Report 2009/10

056.5 Terminations for the period 2009/2010Occupational BandsMaleFemaleAfrican Coloured Indian White African Coloured Indian WhiteSnr Management, Permanent 0 0 1 1Professionally qualified andexperienced specialists, Permanent4 1 1 6Contract (Top Management)Permanent0 1 2 3Contract (Senior Management)Permanent2 0 2Contract (Professionally Qualified)Permanent1 1 1 3Contract (Skilled technical)Permanent0 3 3Contract (Semi-skilled) Permanent 0 1 1Contract (Unskilled) Permanent 5 12 17Total 12 19 2 3 366.6 Disciplinary action for the period 2009/2010MaleFemaleAfrican Coloured Indian White African Coloured Indian WhiteWritten Warning 4 5 9Final Written Warning 1 2 36.7 Skills development for the period 2009/2010Occupational categoriesMaleFemaleAfrican Coloured Indian White African Coloured Indian WhiteLegislators, Snr Officials &Managers, Permanent26 2 1 1 35 2 4 3 74Professionally qualified andexperienced specialists, Permanent13 1 1 4 23 2 45Clerks 24 2 1 38 7 1 2 75Elementary Occupations 5 2 5Total 68 5 6 5 96 11 5 5 201TotalTotalTotalTreasury Annual Report 2009/10127

Section FiveOversight report7. Performance RewardsTo encourage good performance, the department has granted the following performance rewards during the year under review. The informationis presented in terms of race, gender, and disability, salary bands and critical occupations.7.1 Performance Rewards by race and gender, 2009/2010Number ofbeneficiariesBeneficiary ProfileTotal numberof employees ingroup% of totalwithin groupCost (R’000)CostAverage cost peremployee (R’000)Total African 46 222 30.72 535 11,579Male 20 94 19.8 311 11,963Female 26 131 21.3 224 11,195Total Asian 3 11 27.27 83 27,483Male 3 5 60 83 27,483Female 0 6 0 0 0Total Coloured 5 24 20.83 126 22,496Male 3 12 25 109 36,271Female 2 12 16.7 17 8,721Total White 4 18 22.22 113 28,273Male 0 7 0 0 0Female 4 11 36.4 113 28,273Total 58 275 21.09 857 22,4577.2 (a) Signing of Performance Agreements by SMS members as on 30 September 2009Total Number ofFunded SMS Postsper LevelTotal Number ofSMS Members PerLevelTotal Numberof SignedPerformanceAgreements perLevelSignedPerformanceAgreements as %of Total Numberof SMS Membersper LevelDirector General/ Head of Department 1 1 0 0Salary Level 16 (but not HOD) 1 1 0 0Salary Level 15 2 2 2 100Salary Level 14 14 14 12 86Salary Level 13 27 27 18 67Total 45 45 32 84128 Treasury Annual Report 2009/10

057.2 (b) Reasons for not having concluded Performance Agreements for all SMS members as on 30 September 2009Performance agreements were submitted but were referred back during quality assurance processes as it was not aligned to the strategic plan ofthe department.7.2 (c) Disciplinary steps taken against SMS members for not having concluded performance agreements as on 30 September 2009Not applicable7.3 (a) Performance Rewards by salary bands for personnel below Senior Management Service, 2009/2010Salary BandsNumber ofbeneficiariesBeneficiary ProfileNumber ofemployee% of total withinsalary bandsTotal Cost (R’000)CostAverage cost peremployee (R’000)Lower skilled (Levels 1 – 2) 0 4 0 0 0Skilled (Levels 3 – 5) 4 12 33.3 17 4,250Highly skilled production (Levels6 – 8)12 58 20.7 90 7,500Highly skilled supervision (Levels9 – 12)33 126 26.2 373 11,303Contract (Levels 1-2) 0 19 0 0 0Contract (Levels 3 – 5) 0 1 0 0 0Contract (Levels 6 – 8) 0 3 0 0 0Contract (Levels 9 – 12) 0 10 0 0 0Periodical Remuneration 0 29 0 0 0Abnormal Appointment 0 7 0 0 0Total 49 269 18.2 480 9,796Treasury Annual Report 2009/10129

Section FiveOversight report7.3 (b) Performance Rewards by salary bands for personnel below Senior Management Service, 2009/2010Salary BandsNumber ofbeneficiariesBeneficiary ProfileNumber ofemployee% of total withinsalary bandsTotal Cost (R’000)CostAverage cost peremployee (R’000)Administrative Related, Permanent 2 16 12.5 23 11,500Client Information Clerks(Switchboard Reception1 1 100 7 7,000Information Clerks)Communication & InformationRelated2 3 66.7 21 10,500Economists, Permanent 0 11 0 0 0Finance & Economics Related,Permanent22 76 28.9 393 17,864Finance & Related Professionals,Permanent10 44 22.7 94 9,400Financial Clerks & CreditControllers, Permanent0 2 0 0 0Food Service Aids & Waiters,Permanent0 6 0 0 0Human Resources & OrganisationDevelopment & Related,4 18 22.2 56 14,000PermanentHuman Resources Clerks,Permanent1 25 4 11 11,000Human Resources Related,Permanent4 8 50 91 22,750Information technology related,Permanent1 1 100 14 14,000Language Practitioners Interpreters& Other communication,1 2 50 9 9,000PermanentLibrary Mail & Related Clerks,Permanent0 4 0 0 0Material-recording and transportclerks, Permanent1 1 100 5 5,000Messengers, Porters & Deliverers,Permanent1 7 14,3 5 5,000Other administrative policy andrelated officers, Permanent0 1 0 0 0Other Information TechnologyPersonnel0 2 0 0 0Other occupations, Permanent 0 3 0 0 0Secretaries & Other KeyboardOperating Clerks, Permanent4 24 16.7 22 5,500Security Officers 0 1 0 0 0Total 54 256 21.09 751 13907130 Treasury Annual Report 2009/10

057.4 Performance related rewards (cash bonus), by salary band, for Senior Management ServiceSalary BandNumber ofbeneficiariesBeneficiary ProfileNumber ofemployees% of total withinbandTotal Cost(R’000)Average cost peremployee (R ‘000)Band A 7 26 26.9 16,810 3,900Band B 2 13 15.4 9,606 5,200Band C 0 3 0 0 0Band D 0 3 0 0 0Total 9 45 20 26,416 4,188.908. Foreign WorkersThe tables below summarise the employment of foreign nationals in the department in terms of salary bands and by major occupation. Thetables also summarise changes in the total number of foreign workers in each salary band and by each major occupation.8.1 Foreign Workers, 2009/2010, by salary bandSalary Band1 April 2009 31 March 2010Number % of total Number % of totalChangeHighly Skilled Production (Levels6 – 8)0 0 1 12.5% +1Highly Skilled Supervision (Level9 – 12)1 25% 1 12.5% 0Snr Management (Level 13 – 16) 2 50% 2 25% 0Contract (Levels 9 – 12) 1 12.5% +1Contract (Levels 13 – 16) 1 25% 1 12.5%Periodical Renumeration 2 25% +2Total 4 8 +48.2 Foreign Workers, 2009/2010, by major occupationMajor Occupation1 April 2009 31 March 2010Number % of total Number % of totalChangeAdministrative Office Workers 2 25% +2Professionals and Managers 1 25% 3 37.5% +2Senior Management 1 25% 1 12.5%Top Management 2 50% 2 25%Total 4 100% 8 100% +4Treasury Annual Report 2009/10131

Section FiveOversight report9. Leave utilisation for the period 1 January 2009 until 31 December 2010The Public Service Commission identified the need for careful monitoring of sick leave within the public service. The following tables provide anindication of the use of sick leave and disability leave. In both cases, the estimated cost of the leave is also provided.9.1 Sick leaveSalary BandTotal days% days withmedicalcertificationNumber ofEmployees usingsick leave% of totalemployees usingsick leaveAverage days peremployeeLower Skilled (Levels 1 – 2) 3 100 2 1 2Skilled (Levels 3 – 5) 21 66.7 9 4.5 2Highly Skilled Production (Levels6 – 8)234 77.4 41 20.6 6Highly Skilled Supervision (Levels9 – 12)568 66.2 105 52.8 5Senior Management (Levels 13 –16)130 57.7 24 12.1 5Contract (Levels 1 – 2) 23 60.9 8 4 3Contract (Levels 6 – 8) 7 57.1 3 1.5 2Contract (Levels 9 – 12) 12 66.7 5 2.5 2Contract (Levels 13 – 16) 4 50 2 1 2Total 1002 67.6 199 100 59.2 Disability leave (temporary and permanent), 2009/2010Salary BandHighly Skilled Supervision(Level 9 - 12)Total days taken% days withmedicalcertificationNumber ofEmployees usingdisability leave% of totalemployees usingdisability leaveAverage daysper employeeEstimated Cost(R’000)3 NA 1 100 3 4Table 9.3 summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 requiresmanagement of annual leave to prevent high levels of accrued leave being paid at the time of termination of service.9.3 Annual Leave from 1 Jan 2009 to 31 Dec 2009Salary BandsTotal days takenAverage Days perEmployeeNumber ofEmployeesLower Skilled (Levels 1 – 2) 39 8 5Skilled (Levels 3 – 5) 191 16 12Highly Skilled Production (Levels 6 – 8) 993 17 60Highly Skilled Supervision (Levels 9 – 12) 2413 19 129Senior Management (Levels 13 – 16) 814 20 41Contract (Levels 1 – 2) 160 7 22Contract (Levels 3 – 5) 8 8 1Contract (Levels 6 – 8) 55 9 6Contract (Levels 9 – 12) 110 10 11Contract (Levels 13 – 16) 50.92 6 8Total 4833.92 16 295132 Treasury Annual Report 2009/10

059.4 Capped leave for Jan 2009 – Dec 2009Salary BandsTotal days ofcapped leavetakenAverage numberof days takenper employeeAverage cappedleave peremployee as at31 December2009Number ofemployees whotook cappedleaveTotal numberof capped leaveavailable at 31December 2009Number ofemployees as at31 December2009 (all levels)Senior Management(Level 13 – 16)3 3 53 1 1002 19Total 3 3 53 1 1002 199.5 Leave payouts for the periodThe following table summarises payments made to employees as a result of leave that was not taken.REASONTotal Amount(R’000)Number ofEmployeesAverage paymentper employeeCapped leave payout on termination of service 118 9 13,111Current leave payout on termination of service 89 7 12,714Total 207 16 12,93810. HIV/AIDS & Health Promotion Programmes10.1 Steps taken to reduce the risk of occupational exposureUnits/categories of employees identified to be at high risk of contracting HIV& related diseases (if any)NAKey steps taken to reduce the risk10.2 Details of Health Promotion and HIV/AIDS Programmes for the period 2008/2009Question Yes No Details, if yes1. Has the department designated a member of the SMS to implement xMs. S. Fouriethe provisions contained in Part VI E of Chapter 1 of the Public ServiceRegulations, 2001? If so, provide her/his name and position.2. Does the department have a dedicated unit or has it designatedspecific staff members to promote the health and well being of youremployees? If so, indicate the number of employees who are involved inthis task and the annual budget that is available for this purpose.xSufficient funds were provided internally bythe Department and no funds were receivedfrom the Multi-Sectoral Aids Unit in theDepartment of Health. The unit consists of2 full-time employees, and 1 employee oncontract.3. Has the department introduced an Employee Assistance or HealthPromotion Programme for your employees? If so, indicate the keyelements/services of this Programme.4. Has the department established (a) committee(s) as contemplated inPart VI E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? Ifso, please provide the names of the members of the committee and thestakeholder(s) that they represent.5. Has the department reviewed its employment policies and practices toensure that these do not unfairly discriminate against employees on thebasis of their HIV status? If so, list the employment policies/practices soreviewed.xxx24-hour telephone counselling; face-to-facecounselling; life management programmes;management of chronic disease programme;education and awareness campaigns on HIV/Aids, Tuberculosis, Wellness Clinics, VCT etc.S Fourie (Chairperson)I IkanengL MbangaM NqaiK AdonisS KolaM MabenaE PhokoaneAll departmental policies are nondiscriminatoryand reviewed on an annualbasis. The Department had an EWP strategy,HIV & Aids and other chronic diseases policy,annual HIV & Aids implementation planaligned to the National Strategic Plan (NSP).Treasury Annual Report 2009/10133

Section FiveOversight reportQuestion Yes No Details, if yes6. Has the department introduced measures to protect HIV-positiveemployees or those perceived to be HIV-positive from discrimination? Ifso, list the key elements of these measures.xAll departmental policies are nondiscriminatory.HIV & Aids and otherchronic diseases policy was approved andimplemented.HIV & Aids peer educators were appointedand trained on HIV & Aids, ManagingDisclosure, Basic Counselling Skills, TB andawareness and education programmes werealso implemented.Managers attended training in order to equipthem to manage disclosure in the workplace.All employees were trained on HIV & Aidstreatment and prophylaxis.7. Does the department encourage its employees to undergo VoluntaryCounselling 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 thesemeasures/indicators.11. Labour RelationsThe following collective agreements were entered into with trade unions within the department.11.1 Collective agreements, 2008/2009x 3 VCT sessions were conducted in July 2009,August 2009 and December 2009. 60% ofemployees participated. This is a significantimprovement from the 9% of the previousfinancial year.xAll participants are required to completereview forms of all activities undertaken.The department further submit quarterlyand annual monitoring and evaluation reportsto the Gauteng Department of Health.Total collective agreementsNoneThe following table summarises the outcome of disciplinary hearings conducted within the department for the year under review.11.2 Misconduct and disciplinary hearings finalised, 2009/2010Outcomes of disciplinary hearings Number % of totalCorrectional counselling 0 0Verbal warning 0 0Written warning 0 0Final written warning 0 0Suspended without pay 0 0Fine 0 0Demotion 0 0Dismissal 0 0Not guilty 0 0Case withdrawn 0 0Total 0 0134 Treasury Annual Report 2009/10

0511.4 Grievances lodged for the period 2009/2010Number% of TotalNumber of grievances resolved 8 88.88Number of grievances not resolved 1 11.11Total number of grievances lodged 911.5 Disputes lodged with Councils for the period 2009/2010NumberNumber of disputes upheld 1Number of disputes dismissed 0Number of disputes not yet resolved 0Total number of disputes lodged 111.6 Strike actions for the period 2009/2010Total number of person working days lost 0Total cost (R’000) of working days lost 0Amount (R’000) recovered as a result of no work no pay 011.7 Precautionary suspensions for the period 2009/2010Number of people suspended 0Number of people whose suspension exceeded 30 days 0Average number of days suspended 0Cost (R’000) of suspensions 012. Skills developmentThis section highlights the efforts of the department with regard to skills development.12.1 Training needs identified 2008/2009Training needs identified at start of reporting periodSkillsOccupational Categories GenderNumber ofemployees asat 1 Apr 2009Internships /LearnershipsProgrammes& other shortcoursesOther formsof trainingTotalLegislators, senior officials and Female 7 0 19 19managersMale 18 0 19 19Professionals Female 85 22 47 69Male 68 14 32 46Clerks Female 30 6 26 32Male 19 4 16 20Elementary Female 8 0 3 3Male 7 3 3 3Total 242 49 165 214Treasury Annual Report 2009/10135

Section FiveOversight report12.2 Training provided 2009/2010Training provided within the reporting periodSkillsOccupational CategoriesGenderNumber ofemployees asat 1 Apr 2008Internships /LearnershipsProgrammes& other shortcoursesOther forms oftrainingTotalLegislators, senior officials andFemale 7 0 44 44managersMale 18 0 29 29Professionals Female 85 15 30 30Male 68 9 17 17Clerks Female 30 4 51 71Male 19 3 28 39Elementary Female 8 0 2 2 4Male 7 5 5 10Total 242 36 206 2 24413. Injury on dutyThe following tables provide basic information on injury on duty.13.1 Injury on duty, 2009/2010Nature of injury on duty Number % of totalRequired basic medical attention only 2 100Temporary Total Disablement 0 0Permanent Disablement 0 0Fatal 0 0Total 2 100136 Treasury Annual Report 2009/10

05Treasury Annual Report 2009/10137

138 Treasury Annual Report 2009/10

Section Six06OUTLOOK FOR THE2010/11 FINANCIALYEARTreasury Annual Report 2009/10139

Outlook for the 2010/11financial yearSustainable Resource ManagementBudget ManagementIn order to facilitate and support the alignment and integration ofplanning and delivery, the Department will ensure availability ofreal time budget information through the implementation of datawarehouse system that will electronically manage accurate, credibleand timeous historical budget data. It is planned that the system willbe reviewed and enhanced based on the feedback received duringits implementation. Implementation of the budget database systemduring the financial year will facilitate the electronic compilation ofthe provincial main and adjustment budgets and hence improve thebudget data quality.The Department will contribute to the development of tools that willinform the constraints, growth opportunities and allocation process.One key area of service delivery relates to the tabling the main andadjustments budgets that support government priorities. To achievethis, the Department will ,firstly, review and enhance the provincialbudget process to improve efficiency; secondly, develop and distributeTreasury guidelines for the compilation of departmental budgets;and thirdly, host and facilitate the provincial bilateral engagementsbetween Gauteng Treasury and departments (such as the MediumTerm Expenditure Committee sessions, Budget Lekgotla and BudgetForums). Budget Management will also participate in the nationalTreasury’s processes such as chief financial officers’ fora, nationalbenchmarks exercises and task teams designed to attend to specialfunctions of national and provincial interest.A review of the budget process will take place to increase transparencyin resource allocation through exploring various ways of improving thestakeholder participation in the provincial budget process (includingthe public and the provincial legislature). The aim of improvementsin the provincial budget process is enhancing allocative efficiency andminimizing the negative implication of the economic downturn onservice delivery.Public FinanceIn the 2010/11 financial year, the unit will continue to focus on financialreporting, with the focus broadening to encompass priorities that areboth agreed upon by the sector at national level, and those identifiedby the province. This will necessitate closer collaboration with otherunits within the Treasury Branch of the Department and incorporationof their inputs. The basis of reports produced by the unit shall alsoshift from desk-top analysis to factual information obtained fromfirst-hand insight into departmental operations gained by spendingtime within departments. These reports shall also provide the basisfor meaningful engagement with National Treasury and ProvincialDepartments at various forums.With infrastructure delivery providing most of the impetus ofeconomic recovery in South Africa, the 2010/11 financial year willsee a renewed drive to improve infrastructure delivery in Gauteng,particularly with the existence of oversight by the executive by wayof the Executive Infrastructure Management Committee (EIMC) andthe Provincial Infrastructure Management Committee (PIMC) thatwere formally launched in November 2009 to monitor and evaluatekey projects. This will entail not only the monitoring and evaluation ofinfrastructure assets and maintaining of an infrastructure database thatis linked to projects. There will be increased emphasis on conductingsite visits and compilation of technical reports thereafter, as a means ofproviding management with advise on spending and service delivery,and on improving overall infrastructure delivery in Gauteng.Public Finance will also intensify the monitoring of Conditional Grantexpenditure and outcomes, in line with the grant frameworks as setout in the 2010 Division of Revenue Act (DoRA). Interaction withrespective grant managers will be based on ascertaining adherenceto the grant frameworks, attainment intended outcomes, value formoney and ultimately the impact on the population of the province.It is anticipated that in the 201 0/11 financial year, Public Finance willcompile a report for the Medium-Term Expenditure Committee(MTEC) hearings, with specific focus on policy issues and linkingstrategy to projects, analysis of implementation of national andprovincial priorities, review of major programmes funded in the past,in addition to analysing requests for additional funding.In the 2011/11 financial year, Public Finance Unit shall also focus onthe publication of research on topical and pertinent issues, such asanalysing the direction of key GPG projects. Research will mostly bequalitative, focusing on the direct and indirect socio-economic contextand objectives of the investments undertaken, and what the probableimpact would be on society’s welfare.Fiscal Policy and EconomicAnalysisFiscal PolicyThe Fiscal Policy Unit will continue to deal proactively with ownrevenue related matters by assisting departments to optimize revenuecollection. The Unit will consolidate its past achievements by ensuringthat it keeps abreast of all revenue related issues. Local partners willbe consulted, and the Unit will take part in discussions with nationaland provincial stakeholders. Key outputs such as the Medium TermBudget Policy Statement and own revenue reports will be constantlyimproved to ensure that they remain up to date and relevant.140 Treasury Annual Report 2009/10

06Economic AnalysisThe annual PERO and SERO will be published in order to provide awell-researched review and outlook of the provincial economy andthus inform policy decisions. The unit will apply the provincial SocialAccounting Matrix (SAM) and Computable General Equilibrium(CGM) models were developed, on different projects, and willpublish simulation reports. The unit will continue to publish QuarterlyBulletins on topical issues, and the Weekly Economic Newsletterswhich aim to inform public on key economic events of the precedingweek. To get feedback from stakeholders and to improve the qualityof future publications, the unit plans to hold two workshops after therelease of the annual publications.Public Private PartnershipsThe unit will continue to municipalities in the form of one-on-oneengagements, post Municipal PPP conference held recently, in aneffort to explore and increase PPP initiatives as there is currently lessappetite in the sector as compared to departments within GPG.A Health PPP program driven by National Treasury, the DBSA, ata national level, in collaboration with Health (provincial & national)and PPP unit within Treasury Division of Department of Finance,focusing on CHBH Health Village PPP and later George Mkhari aspriority projects by the province, will receive hands-on support in theform of technical and co-funding arrangements. The rationale for thisarrangement is to try and expedite health service delivery projectsin an effort to ensure that both national and provincial priorities areachieved.Financial Governance (FG)Assets and LiabilitiesTreasury will focus on strengthening departments’ cash flow forecastingand expenditure management to ensure that monthly expenditureis aligned to revenue. The system of monthly cash allocation todepartments will become a permanent feature of managing cash inGPG. Expenditure will be closely monitored to avoid overruns ofexpenditure against revenue, which create a cash shortage for GPG.Rolling cash flow projections will be prepared to determine sufficiencyof cash resources against expenditure, and for planning purposes.Training on cash flow forecasting, managing the value chain in supplierpayments, funds requisitions and petty cash will be provided to cashmanagers in GPG’s departments.The Financial Systems Directorate will implement and roll outthe Integrated Financial Management System (IFMS) and financialmanagement solutions throughout the province. Training will beprovided to the user departments to ensure effective and efficient useof the systems, and skills transfer to achieve departmental objectives.A Cash Management System will be implemented. This is an in-houseproject designed to assist with making cash flow projections and toimprove the efficiency of departmental performance. To optimiseown revenue, the department will continue to invest surplus funds ina prudent manner at an acceptable level of risk.Local Government ResourceManagement & IntergovernmentalRelationsThe unit will publish the first Gauteng Local Government FinanceReview reflecting the overall performance of municipalities andsimultaneously present the key focus priorities for all municipalities.Through our partnership with DBSA, under Siyenza ManjeProgramme, and the Department of Local Government & Housingwe will continue with our collective programme of support to allmunicipalities in the Province. In the forthcoming financial year we willcommence to look at how Municipal Tariffs and Taxes are formulatedfrom a costing model perspective. The unit will endeavour to continueour Intergovernmental engagement with municipalities throughthe Gauteng Municipal CFO Forums and support the Office of theMEC for Finance in Municipal Fiscal deliberations with the MayoralCommittees for Finance through the Municipal Finance Indaba. TheUnit will commence with a focus on the Gauteng Municipal BuildEnvironment in an effort to ensure that infrastructure at a local level isproperly financed, maintained and used effectively towards enhancingService Delivery.Treasury Annual Report 2009/10141

Outlook for the 2010/11financial yearAccounting ServicesThis unit will continue to provide training and support on financialaccounting, supply chain and asset management to provincialdepartments, entities and delegated municipalities. The unit willengage the various stakeholders through active participation in variousforums and will submit quarterly oversight reports to SCOPA.The municipal accounting unit will continue support and monitor theimplementation of the new accounting standards, through training,workshops and hands-on assistance. The unit will also strengthenits own capacity to assist municipalities with the implementation ofeffective Internal Audit and Audit Committee structures. The unitwill participate in Operation Clean Audit to ensure that all Gautengmunicipalities achieve clean audits by 2014. In consultation with theNational Treasury, the unit will roll out the Financial Maturity CapabilityModel to municipalities, to assess their level of maturity in financialmanagement and governance.The asset management unit will continue to work with the provincialDepartment of Public Works to monitor the implementation ofGovernment Immovable Asset Management Act (GIAMA).The unitwill also monitor progress made by municipalities in unbundling theirinfrastructure assets in line with PPE standards. The unit will reviewits Supply Chain Management structure to ensure that it can supportprovincial government departments and entities, and municipalities.A thorough review of SCM practices within the province will becarried out, to ensure that practices are in line with the NationalFramework.Risk ManagementIn implementing the financial management reforms in GPGdepartments and public entities, the PFMR Directorate will workwith National Treasury to roll out the Financial Management CapacityBuilding project to enhance financial management capacity across theprovince. Personnel will be dedicated to public entities to assist withthe creating and listing them, as well as ensuring that the normativemeasures of the PFMA are adhered to. The unit will also start a projectto ensure the effective and efficient running of Audit Committees inlocal government and that these committees and internal audit areused effectively as risk management tools.The Enterprise Risk Management (ERM) unit will roll out the riskmanagement reform to the other delegated municipalities which havenot made significant progress due to lack of capacity. There will also becollaboration with the metropolitan municipalities to establish a RiskManagement Forum for them. This will create a platform of sharingideas and learning for all Risk Officers in local government. The unitwill also continue strengthening the capacity of departments’ ChiefRisk Officers by ensuring that they are kept abreast of best practicesand the latest developments in risk management.142 Treasury Annual Report 2009/10

Acronyms and AbbreviationsACAFSAGAOAMRBASBBEBERCAsCIOCGECFOCoJCHBHDACDEDDoHDBSADPSADPTRWDORAEAEAPEEERMEXCOFIFAFFCFGFMSGAAPGAMAPGASGCRGDSGIAMAGPGGIAMAGTGSSCGYCGRAPAudit CommitteeAnnual Financial StatementsAuditor GeneralAccounting OfficerAsset Management ReformsBasic Accounting SystemBlack Economic EmpowermentBureau for Economic ResearchChartered AccountantsChief Information OfficerComputable General EquilibriumChief Financial OfficerCity of JohannesburgChris Hani Baragwanath HospitalDepartmental AcquisitionDepartment of Economic DevelopmentDepartment of HealthDevelopment Bank of Southern AfricaDepartment of Public Service and AdministrationDepartment of Public Transport. Roads and WorksDivision of Revenue ActEconomic AnalysisEmployee Assistance ProgrammeEmployee EquityEnterprise Risk ManagementExecutive CommitteeFederation International Football AssociationFinancial Fiscal CommissionFinancial GovernanceFinancial Management SystemGenerally Accepted Accounting PracticeGenerally Accepted Municipal Accounting PracticeGauteng Audit ServicesGlobal City RegionGlobal and Development StrategyGovernment Immovable’Asset Management ActGauteng Provincial GovernmentGovernment Immovable Asset Management ActGauteng TreasuryGauteng Shared Service CentreGauteng Youth CommissionGenerally Recognised Accounting PracticesHOAHODHDlsHRHRDIAIFMSIDIPlOPIPIPIPMPIRMIYMJBCCMECMFMAMSAMTBPSMTECMTEFNCOPOSDPMPBCPEROPERSALPFMAPPPPTPTCSAMSAPSCOFSCMSCOPASDBIPSDISERSLASMSSRMTCFHome Owners AllowanceHead of DepartmentHistorically Disadvantaged IndividualsHuman ResourcesHuman Resources DevelopmentInternal AuditIntegrated Financial Management SystemsInfrastructure Delivery Improvement ProgrammeIntegrated Development PlanningInfrastructure project implementation plansInfrastructure project management plansInfrastructure Reporting ModelIn-Year MonitoringJoint Building Contracts CommitteeMember of Executive CouncilMunicipal Finance Management ActMunicipal Systems ActMedium Term Budget Policy StatementsMedium Term Expenditure CommitteeMedium Term Expenditure FrameworllNational Council of ProvincesOccupation Specific DispensationPublic Audit ActPremier Budget CommitteeProvincial Economic Review and OutlookPersonnel and Salary SystemPublic Finance Management ActPublic Private PartnershipProvincial TreasuryProvincial Treasury CommitteeSocial Accounting MatrixSystems, Applications, and ProductsStanding Committee on FinanceSupply Chain ManagementStanding Committee on Public AccountsService Delivery Budget Implementation PlanService Delivery ImprovementSocial Economic ReviewService level AgreementSenior Management ServicesSustainable Resource ManagementTechnical Committee on FinanceTreasury Annual Report 2009/10143

Imbumba House, 75 Fox Street, Johannesburg, South Africa, 2001Private Bag x112, Marshalltown, South Africa, 2107Contact Centre: 0860 GAUTENG (428 8364)Tel: +27 (0) 689 6000 Fax: +27 (0) 11 355 2112email: gssccommunications@gauteng.gov.zawww.gautengonline.bog.za