GDF Annual Report - Gauteng Provincial Treasury

SECTION 4: ANNUAL REPORT OF FINANCIAL THE ACCOUNTING STATEMENTS OFFICER7. Corporate governancearrangements7.1 The department has a functional and effective RiskManagement Committee which is chaired by theHOD. All executive managers are members thereofincluding the Chief Risk Officer. The departmentalrisk profile is monitored on a quarterly basis, andis reported to the Risk Management Committeeregularly. Additionally, a risk profile and analysis ofeach Chief Directorate was completed during the2009/10 financial year. Regular monitoring andimplementation of action plans is conducted tostrengthen internal controls.7.2 The department’s Fraud Prevention Plan wasrevised for the 2010/11 financial year. Therefore,departmental officials underwent fraud awarenesstraining throughout the year in order to educate,manage, identify and report incidents of fraud andcorruption.7.3 An Internal Audit Plan was developed with theassistance of the Gauteng Audit Services to ensurecompliance with the Internal Audit Charter. Theirplans were approved by the Audit Committee whichexercises oversight on the implementation thereof.7.4 The Department complied with section 38 (1)(a) (ii) of the PFMA as performance and internalcontrols were reported to and reviewed by theAudit Committee quarterly.8. Discontinued departmentactivitiesThere were no discontinued departmental activitiesduring the year under review.9. New departmental activitiesWith effect from February 2011, the departmentmanages the Premier’s Hotline (through the contactcentre).This service ensured a formal process andsystem through which Gauteng citizens could interactwith the provincial government, receive information,lodge complaints, and resolve issues relating to nondeliveryof public services.10. Asset managementA departmental asset management plan wasdeveloped and aligned to our Annual PerformancePlan for sound asset management practice. Storesof inventory were centralised, resulting in improvedInventory management. Since then, our assets wereclassified and categorized correctly according to theminimum requirements of asset registers as issuedby National Treasury on the Asset ManagementFramework. Validation of the completeness of the assetregister was performed through an annual verification.Section 45(e) of PFMA was also implemented, whereofficials signed inventory lists for assets in their areasof responsibility.11. InventoriesThe value of inventories on hand at 31 March 2011amounted to R2, 2m, which were valued on the first-infirst-out basis of valuation. The inventories comprisedmainly of:• Stationery and printing consumables• Domestic consumables12. Performance Information12.1 The impact of the reconfiguration processThe reconfiguration process required that thedepartment redefine its role in line with its provincialmandate, its strategic role as contained in the PFMA,and the provincial outcomes. As a result, some of oursub-programmes’ actual performance appeared atvariance with the indicators that were initially approved.12.2 The department achieved the followingmilestones during the 2010/11 financial year:• The organisational structure was approved by theMEC and HOD, which information was used tosuccessfully consult with recognised trade unionsin the DCMPT on the entire reconfiguration process• We had spent 98% of our adjusted budgetappropriation (R1, 515bn) at financial year-end.• As part of the MEC for Health’s turnaroundstrategy, we prepared a research report with142142Annual Report 2010 / 2011