GDF Annual Report - Gauteng Provincial Treasury

SECTION 4: ANNUAL FINANCIAL STATEMENTSAdministrationThe total amount of R25, 6 million under-spent in theAdministration programme relates to:• R24,1 million is the outstanding amount of the totalbudget amounting to R71,1 million allocated toconsulting services under Administration; followingupon a departmental decision to cut back on theuse of consultants and to utilise own resources,resulting in the under-spend on this item.• An amount of R1, 5 million had been allocatedto Forensic Audit for the IT2 Analyst Notebooksolution which, due to budget priorities was notcarried out.Sustainable Resource ManagementThe Sustainable Resource Management programmeunder-spent on the compensation of employees tothe amount of R1, 7 million: a total of 77 posts werebudgeted for; however, 13 posts were vacant at yearend,comprising Chief Director, Director, DeputyDirector and Assistant Director posts. Under-spendingon goods and services amounts to R2, 2 million ofwhich R1, 7 million had been allocated to the gamblingtax project that had not been completed at yearend;R395 thousand had been allocated to the printingof 2011/12 budget books but the invoice had notbeen received at year-end; and the R106 thousandhad been allocated to consultants: legal costs underPublic Private Partnership, which had not beenutilised.Financial GovernanceFinancial Governance programme under-spent oncompensation of employees to the amount of R971thousand: a total of 84 posts were budgeted for:however, 13 posts were vacant at year-end, comprisingof DDG, Director, Assistant Director, Senior and JuniorAudit posts. Under-spent on goods and servicesamounts to R3 million: of which, R2 million is theoutstanding amount of the total budget amounting toR6, 9 million that had been allocated for the StandardProcedure Manuals; R1, 1 million had been allocated forthe Financial Governance for the training of municipalofficials, and the concomitant expenditure arising fromthe support the programme provides to municipalities,such as travel and subsistence and booking of venuesand facilities.Technological Support ServicesUnauthorised expenditure of R3, 1 million arose as aresult of overspending for GPG contact centre undercurrent payments (goods and services).Payment for capital assetsA request for the rollover of the amount under-spentunder payments for capital assets amounting toR28, 6 million has been submitted to Treasury forconsideration. The procurement process to secureservers and computers had begun but could not becompleted in time by year-end, hence the request forthe rollover of funds.168168Annual Report 2010 / 2011