GDF Annual Report - Gauteng Provincial Treasury

SECTION 3: REPORT ON THE PERFORMANCE OF PROGRAMMESOutput/ key deliverablesPerformance IndicatorsAnnualTarget6.2 Sub-programme: Procurement SupportOptimise and support the utilisation ofProcurement processes and systems for Number of sites visited and supported. 930 645GPG users.Number of Procurement Officials trained on the system. 550 848Compliance in respect of requests created on timefor Material and Service Masters.97% 100%6.3 Sub-programme: Vendor Management & DevelopmentEnsure that BEE/SMME enterprisesare afforded procurement businessopportunities and that the GPGCentralised Vendor Database is managedand maintained effectivelyAttainment of GPG Preferential Procurement spendtargets.Actual Performanceagainst Output targetHDI 80% HDI 59,6%Women 30% Women 4,3%PwD 5% PwD 0,0%Youth 10% Youth 1,3%Maintaining a Centralised Vendor Database. 70% 70%6.4 Sub-programme: Accounts PayableAccurate payment of suppliers within SLA % of suppliers paid within SLA 98%Reasons for deviationThe GDF Procure to Pay Business Unit is of the opinionthat the GPG Preferential Procurement spend targetsare not based on any sound research and thereforemay not be practical and achievable. Analysis of theYTD spend for GDF reveals the following:-1. Total spend was R437,5 million and the GDFutilized 270 companies. Of these companies theGDF spent 89,4% of it’s total spend with the Top 20Companies. Preferential Procurement spend achievedwithin the Top 20 companies is relatively low astabulated below:-HDI 59,5% / Women 3.2% / PwD 0.0% / Youth 0.0%2. Further analysis of the total YTD spend reveals thatthe largest portion is in the ICT / Professional Servicescommodity group, which is 97%. Whilst PreferentialProcurement spend in this group is below target at:-HDI 60,2% / Women 4,2% / Youth 1,3% / PwD 0,0%3. Finally, budget restrictions meant that expenditurehad to be curtailed. R437.5 million is only 42% of theAnnual Revised Budget of R1,046.5 million for theGDF (Goods & Services).Gauteng Department of Finance103