Annual Report 2011/2012
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67
REPORT OF THE AUDITOR-GENERAL TO NORTH WEST PROVINCIAL LEGISLATURE ON VOTE NO. 6: DEPARTMENT OF ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION AND TOURISM
REPORT ON THE FINANCIAL STATEMENTS
Introduction
1. I have audited the financial statements of the Department of Economic Development,
Environment, Conservation and Tourism set out on pages 72 to 112, which comprise the
appropriation statement, the statement of financial position as at 31 March 2012, the statement of financial performance, statement of changes in net assets and the cash flow statement for the year then ended, the notes, comprising a summary of significant accounting policies and other explanatory information.
Accounting officer’s responsibility for the financial statements
2. The accounting officer is responsible for the preparation and fair presentation of these financial statements in accordance with the departmental financial reporting framework prescribed by the National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and the Division of Revenue Act of South Africa, 2011 (Act No. 6 of 2011) (DoRA), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor-General’s responsibility
3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the General Notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
68
Opinion
6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Department of Economic Development, Environment, Conservation and Tourism as at 31 March 2012, and its financial performance and cash flows for the year then ended in accordance with the departmental financial reporting framework prescribed by the National Treasury and the requirements of the PFMA and the DoRA.
Emphasis of matters
7. I draw attention to the matters below. My opinion is not modified in respect of these matters.
Irregular and fruitless and wasteful expenditure
8. As disclosed in note 24 to the financial statements, irregular expenditure of R2 223 000 was
incurred in the current year and irregular expenditure from prior years of R13 086 000 is still awaiting condonation.
9. As disclosed in note 25 to the financial statements, fruitless and wasteful expenditure of
R103 000 for the current year and R76 000 from prior years had not yet been resolved.
Material underspending of the budget
10. As disclosed in the appropriation statement, the department has materially underspent the budget on programmes 1, 2, 4, 5 and 6 by R70 642 000. Consequently, the department has not achieved the objectives of these programmes. The underspending of the budget resulted from an amount of R50 million included in the budget for goods and services for the Provincial Growth Fund, which could not be spend following a directive by Provincial Treasury as well as the result of vacancies in these units.
Additional matters
11. I draw attention to the matters below. My opinion is not modified in respect of these matters.
Unaudited supplementary schedules
12. The supplementary information set out on pages 111 to 112 does not form part of the
financial statements and is presented as additional information. I have not audited these annexures and, accordingly, I do not express an opinion thereon.
Financial reporting framework
13. The financial reporting framework prescribed by the National Treasury and applied by the department is a compliance framework. The wording of my opinion on a compliance framework should reflect that the financial statements have been prepared in accordance with this framework and not that they “present fairly”. Section 20(2)(a) of the PAA, however, requires me to express an opinion on the fair presentation of the financial statements. The wording of my opinion therefore reflects this requirement.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
14. In accordance with the PAA and the General Notice issued in terms thereof, I report the following findings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.
69
Predetermined objectives
15. I performed procedures to obtain evidence about the usefulness and reliability of the
information in the annual performance report as set out on pages 14 to 51 of the annual
report.
16. The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury annual reporting principles and whether the reported performance is consistent with the planned objectives. The usefulness of information further relates to whether indicators and targets are measurable (i.e. well defined, verifiable, specific, measurable and time bound) and relevant as required by the National Treasury Framework for managing programme performance information.
17. The reliability of the information in respect of the selected programmes/ objectives is assessed to determine whether it adequately reflects the facts (i.e. whether it is valid, accurate and complete).
18. There were no material findings on the annual performance report concerning the usefulness and reliability of the information.
Additional matters
19. Although no material findings concerning the usefulness and reliability of the performance information were identified in the annual performance report, I draw attention to the following matters below.
Achievement of planned targets
20. Of the total number of planned targets, only 161 were achieved during the year under review. This represents 43% of total planned targets that were not achieved during the year under review. This was mainly due to the fact that indicators and targets were not suitably developed during the strategic planning process
Material adjustments to the annual performance report
21. Material misstatements (39%) in the annual performance report were identified during the audit, all of which were corrected by management.
Compliance with laws and regulations
22. I performed procedures to obtain evidence that the department has complied with applicable laws and regulations regarding financial matters, financial management and other related matters. My findings on material non-compliance with specific matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA are as follows:
Expenditure management
23. The accounting officer did not take effective steps to prevent irregular and fruitless and wasteful expenditure, as required by section 38(1)(c)(ii) of the PFMA and Treasury Regulation 9.1.1.
24. Money owed by the department were not settled within 30 days, as required by section 38(1)(f) of the PFMA and Treasury Regulation 8.2.3.
70
Human resource management and compensation
25. Employees were appointed without following a proper process to verify the claims stated in their applications in contravention of Public Service Regulation 1/VII/D.8.
26. Employees acted in higher vacant posts for more than 12 months in contravention of Public Service Regulation 1/VII/B.5.3.
27. The human resource plan did not include an assessment of the human resources necessary to perform the department’s functions and/ or a gap analysis between the human resources required and the existing human resources with plans to address the identified gaps and/ or a budget analysis that ensures that the plan can be executed within the available budgeted funds as required by Public Service Regulation 1/III/D1.
Procurement and contract management
28. Goods and services with a transaction value below R500 000 were procured without
obtaining the required price quotations, as required by Treasury Regulation 16A.6.1
Internal control
29. I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with laws and regulations. The matters reported below under the fundamentals of internal control are limited to the significant deficiencies that resulted in the findings on the annual performance report and the findings on compliance with laws and regulations included in this report.
Leadership
30. There was a lack of appropriate oversight to ensure that matters relating to financial reporting and compliance with laws and regulations previously reported, were addressed.
Financial and performance management
31. Management did not implement controls to ensure that information in the report on predetermined objectives was reliable before submission for audit purposes.
Governance
32. Management did not implement appropriate risk management activities to consider IT risks as the Departmental risk framework has not been aligned with the ICT Directorate key objectives and function.
Rustenburg
31 July 2012
71
Vote 6- NW: ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION & TOURISM
Appropriation Statement
for the year ended 31 March 2012
Appropriation per programme
2011/12 2010/11
Adjusted
Appropriation
Shifting
of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure
as % of final
appropriation
Final
Appropriation
Actual
Expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
1. ADMINISTRATION
Current payment 107,202 - - 107,202 49,980 57,222 46.6% 45,226 42,321
Transfers & subsidies 1,055 - - 1,055 1,053 2 99.8% 203 167
Payment for capital assets 1,000 - - 1,000 729 271 72.9% 1,901 1,485
109,257 - - 109,257 51,762 57,495 47.4% 47,330 43,973
2. INTEGRATED ECONOMIC
DEVELOPMENT SERVICES
Current payment 14,584 - - 14,584 13,280 1,304 91.1% 13,962 10,170
Transfers & subsidies 21,500 - - 21,500 20,573 927 95.7% 20,000 16,508
36,084 - - 36,084 33,853 2,231 93.8% 33,962 26,678
3. TRADE & INDUSTRY
PROMOTION
Current payment 7,919 - - 7,919 6,695 1,224 84.5% 12,973 10,687
Transfers & subsidies 185,731 - - 185,731 184,281 1,450 99.2% 208,895 200,348
193,650 - - 193,650 190,976 2,674 98.6% 221,868 211,035
4. BUSINESS REGULATION &
GOVERNANCE
Current payment 16,427 - - 16,427 14,181 2,246 86.3% 13,588 13,190
Transfers & subsidies 28,505 - - 28,505 28,504 1 100.0% 20,277 20,277
Payment for capital assets - - - - - - 30 29
Payment for financial assets - - - - 7 -7 - -
44,932 - - 44,932 42,692 2,240 95.0% 33,895 33,496
5. ECONOMIC PLANNING
Current payment 4,776 - - 4,776 3,813 963 79.8% 5,135 4,694
4,776 - - 4,776 3,813 963 79.8% 5,135 4,694
6. ENVIRONMENTAL SERVICES
Current payment 69,138 - - 69,138 61,451 7,687 88.9% 65,592 61,306
Transfers and subsidies - - - - - - -50 26
Payment for capital assets 205 - - 205 179 26 87.3% 971 775
Payment for financial assets - - - - - - - 85
69,343 - - 69,343 61,630 7,713 88.9% 66,513 62,192
Subtotal 458,042 - - 458,042 384,726 73,316 84.0% 408,703 382,068
Statutory Appropriation
TOTAL 458,042 - - 458,042 384,726 73,316 84.0% 408,703 382,068
Reconciliation with Statement of Financial Performance
Add:
Departmental receipts 6,320 4,559
Actual amounts per Statement of Financial Performance (Total Revenue) 464,362 413,262
Add: -
Prior year unauthorised expenditure approved without funding
Actual amounts per Statement of Financial Performance Expenditure 384,726 382,068
72
Vote 6- NW: ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION & TOURISM
Appropriation per Economic classification
2011/12 2010/11
Adjusted
Appropriation
Shifting
of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure as
% of final
appropriation
Final
Appropriation
Actual
Expenditure
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments
Compensation of employees 115,107 - - 115,107 105,249 9,858 91.4% 101,721 99,609
Goods and services 104,789 -14 - 104,775 44,025 60,750 42.0% 54,675 42,397
Interest and rent on land 150 14 - 164 126 38 76.8% 30 44
Transfers & subsidies
Provinces & municipalities - - - - - - - 2
Departmental agencies &
accounts
197,015 9,519 - 206,534 205,603 931 99.5% 249,375 237,301
Public Corporations & Private 39,776 -9,670 30,106 28,652 1,454 95.2%
Households - 151 - 151 151 - 100.0% - 24
Gifts and donations 5 -5
Payment for capital assets
Machinery & equipment 1,205 -80 - 1,125 908 217 80.7% 2,836 2,541
Software & other intangible
assets
- 80 - 80 - 80 0.0% 66 65
Payment for financial assets - - - - 7 -7 - 85
Total 458,042 - - 458,042 384,726 73,316 84.0% 408,703 382,068
73
Vote 6- NW: ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION & TOURISM
Detail per programme 1 - ADMINISTRATION
For the year ended 31 March 2012
2011/12 2010/11
Adjusted
Appropriation
Shifting
of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure as
% of final
appropriation
Final
Appropriation
Actual
Expenditure
Details per Sub-Programme
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
1.1 OFFICE OF THE MEC
Current payment 5,732 -273 5,459 4,911 548 90.0% 5,413 5,050
Transfers and subsidies - - 50 34
Payment for capital assets - - -20
1.2 OFFICE OF THE HOD -
Current payment 55,833 -707 55,126 2,409 52,717 4.4% 3,843 2,786
Transfers and subsidies 1,000 1,000 1,000 - 100.0% 100 99
1.3 FINANCIAL MANAGEMENT -
Current payment 10,721 -155 10,566 9,404 1,162 89.0% 8,906 8,472
Payment for capital assets 600 20 620 583 37 94.0% 551 567
1.4 CORPORATE SERVICES -
Current payment 34,916 1,135 36,051 33,256 2,795 92.2% 27,064 26,013
Transfers and subsidies 55 55 53 2 96.4% 53 34
Payment for capital assets 400 -20 380 146 234 38.4% 1,350 938
Total 109,257 - - 109,257 51,762 57,495 47.4% 47,330 43,973
2011/12 2010/11
Adjusted
Appropriation
Shifting
of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure as
% of final
appropriation
Final
Appropriation
Actual
Expenditure
Programme 1 Per Economic
classification
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments
Compensation of employees 30,251 30,251 26,491 3,760 87.6% 22,491 21,833
Goods and services 76,861 76,861 23,380 53,481 30.4% 22,707 20,135
Interest and rent on land 90 90 109 -19 121.1% 28 35
-
Transfers & subsidies -
Departmental agencies &
accounts
1,055 1,055 1,053 2 99.8% 203 168
-
Payment for capital assets -
Machinery & equipment 1,000 (80) 920 729 191 79.2% 1,835 1,737
Software & other intangible
assets
80 80 80 0.0% 66 65
-
-
Total 109,257 - - 109,257 51,762 57,495 47.4% 47,330 43,973
74
Vote 6- NW: ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION & TOURISM
Detail per programme 2 - INTEGRATED ECONOMIC DEVELOPMENT SERVICES
For the year ended 31 March 2012
2011/12 2010/11
Adjusted
Appropriation
Shifting
of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure as
% of final
appropriation
Final
Appropriation
Actual
Expenditure
Details per Sub-Programme
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
2.1 ENTERPRISE DEVELOPMENT
Current payment 4,872 4,356 9,228 8,959 269 97.1% 7,393 6,403
Transfers and subsidies 20,000 20,000 19,073 927 95.4% 5,000 1,508
2.2 REGIONAL AND LOCAL
ECONOMIC DEVELOPMENT
Current payment 3,321 428 3,749 2,789 960 74.4% 2,813 2,681
2.3 ECONOMIC EMPOWERMENT -
Current payment 6,391 -4,784 1,607 1,532 75 95.3% 3,756 1,086
Transfers and subsidies 1,500 1,500 1,500 - 100.0% 15,000 15,000
Total 36,084 - - 36,084 33,853 2,231 93.8% 33,962 26,678
2011/12 2010/11
Adjusted
Appropriation
Shifting
of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure as
% of final
appropriation
Final
Appropriation
Actual
Expenditure
Programme 2 Per Economic
classification
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments
Compensation of employees 10,694 10,694 9,611 1,083 89.9% 8,725 8,605
Goods and services 3,890 3,890 3,669 221 94.3% 5,237 1,565
Transfers & subsidies
Departmental agencies &
accounts 21,500 (151) 21,349 20,422 927 95.7% 20,000 16,508
Households 151 151 151 - 100.0%
Total 36,084 - - 36,084 33,853 2,231 93.8% 33,962 26,678
75
Vote 6- NW: ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION & TOURISM
Detail per programme 3 - TRADE AND INDUSTRY PROMOTION
For the year ended 31 March 2012
2011/12 2010/11
Adjusted
Appropriation
Shifting
of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure as
% of final
appropriation
Final
Appropriation
Actual
Expenditure
Details per Sub-Programme
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
3.1 TRADE & INVESTMENT
POMOTION
Current payment 823 823 545 278 66.2% 4,555 4,327
Transfers and subsidies 24,627 24,627 24,631 -4 100.0% 27,402 22,402
3.2 SECTOR DEVELOPMENT
Current payment 6,454 14 6,468 6,013 455 93.0% 7,040 6,242
Transfers and subsidies 126,328 9,670 135,998 135,998 - 100.0% 134,624 134,624
3.3 STRATEGIC INITIATIVES -
Current payment 642 -14 628 137 491 21.8% 1,378 118
Transfers and subsidies 34,776 -9,670 25,106 23,652 1,454 94.2% 46,869 43,322
Total 193,650 - - 193,650 190,976 2,674 98.6% 221,868 211,035
2011/12 2010/11
Adjusted
Appropriation
Shifting
of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure as
% of final
appropriation
Final
Appropriation
Actual
Expenditure
Programme 3 Per Economic
classification
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments
Compensation of employees 7,026 7,026 6,154 872 87.6% 6,181 6,081
Goods and services 893 (14) 879 528 351 60.1% 6,792 4,606
Interest and rent on land 14 14 13 1 92.9%
Transfers & subsidies
Departmental agencies &
accounts 145,955 9,670 155,625 155,624 1 100.0% 208,895 200,348
Public Corporations and
Private enterprises 39,776 (9,670) 30,106 28,652 1,454 95.2%
Gifts and donations - 5 -5
Total 193,650 - - 193,650 190,976 2,674 98.6% 221,868 211,035
76
Vote 6- NW: ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION & TOURISM
Detail per programme 4 - BUSINESS REGULATION AND GOVERNANCE
For the year ended 31 March 2012
2011/12 2010/11
Adjusted
Appropriation
Shifting
of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure as
% of final
appropriation
Final
Appropriation
Actual
Expenditure
Details per Sub-Programme
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
4.1 REGULATION SERVICES
Current payment 3,004 90 3,094 2,463 631 79.6% 3,827 1,443
4.2 CONSUMER PROTECTION
Current payment 7,329 7,329 6,780 549 92.5% 5,430 5,180
Payment for capital assets - - - 30 29
Payment for financial assets - 7 -7 0.0%
4.3 LIQOUR REGULATION
Current payment 6,063 -116 5,947 4,882 1,065 82.1% 4,331 6,567
4.4 GAMBLING AND BETTING
Current payment 31 26 57 56 1 98.2% 20,277 20,277
Transfers and subsidies 28,505 28,505 28,504 1 100.0%
Total 44,932 - - 44,932 42,692 2,240 95.0% 33,895 33,496
2011/12 2010/11
Adjusted
Appropriation
Shifting
of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure as
% of final
appropriation
Final
Appropriation
Actual
Expenditure
Programme 4 Per Economic
classification
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments
Compensation of employees 13,579 13,579 12,002 1,577 88.4% 12,064 12,046
Goods and services 2,848 2,848 2,179 669 76.5% 1,522 1,144
Interest and rent on land - - 2
- -
Transfers & subsidies
Departmental agencies &
accounts 28,505 28,505 28,504 1 100.0% 20,277 20,277
Payment for capital assets
Machinery & equipment - - 30 29
Payment for financial assets - 7 -7
Total 44,932 - - 44,932 42,692 2,240 95.0% 33,895 33,496
77
Vote 6- NW: ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION & TOURISM
Detail per programme 5 - ECONOMIC PLANNING
For the year ended 31 March 2012
2011/12 2010/11
Adjusted
Appropriation
Shifting
of
Funds
Virement Final
Appropriation
Actual
Expenditure Variance
Expenditure
as % of final
appropriation
Final
Appropriation
Actual
Expenditure Details per Sub-Programme
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
5.1 POLICY AND PLANNING
Current payment 1,554 1,554 1,201 353 77.3% 2,016 1,842
5.2 RESEARCH & DEVELOPMENT
Current payment 1,440 25 1,465 1,360 105 92.8% 1,827 1,667
5.3 KNOWLEDGE MANAGEMENT
Current payment 617 -25 592 104 488 17.6% 1,292 1,185
5.4 MONITORING & EVALUATION
Current payment 1,165 1,165 1,148 17 98.5%
Total 4,776 - - 4,776 3,813 963 79.8% 5,135 4,694
2011/12 2010/11
Adjusted
Appropriation
Shifting
of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure as
% of final
appropriation
Final
Appropriation
Actual
Expenditure
Programme 5 Per Economic
classification
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments
Compensation of employees 4,037 4,037 3,226 811 79.9% 4,103 4,087
Goods and services 739 739 587 152 79.4% 1,032 607
Total 4,776 - - 4,776 3,813 963 79.8% 5,135 4,694
78
Vote 6- NW: ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION & TOURISM
Detail per programme 6 - ENVIRONMENTAL SERVICES
For the year ended 31 March 2012
2011/12 2010/11
Adjusted
Appropriation
Shifting
of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure as
% of final
appropriation
Final
Appropriation
Actual
Expenditure
Details per Sub-Programme
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
6.1 ENVIRONMENT MANAGEMENT
SUS DEV POLICY
Current payment 8,952 -1,469 7,483 5,894 1,589 78.8% 15,072 17,781
Transfers and subsidies - - 0.0% 26
Payment for capital assets - - 0.0% 201 90
Payment for financial assets - - 0.0% 85
6.2 PLANNING, IMPACT,
POLLUTION & WASTE
MANAGEMENT
Current payment 31,592 -12,058 19,534 16,123 3,411 82.5% 30,666 15,634
Transfers and subsidies -50
Payment for capital assets 128 128 127 1 99.2% 350 341
6.3 ECOSYSTEM, BIODIVERSTIY &
NATURAL HERBS
Current payment 11,534 9,865 21,399 20,123 1,276 94.0% 11,497 21,011
Payment for capital assets 205 -128 77 52 25 67.5% 380 344
6.4 ENVIRONMENTAL
MANAGEMENT SUSTAIN
RESOURCE
Current payment 17,060 3,662 20,722 19,311 1,411 93.2% 8,357 6,880
Payment for capital assets 40
Total 69,343 - - 69,343 61,630 7,713 88.9% 66,513 62,192
2011/12 2010/11
Adjusted
Appropriation
Shifting
of
Funds
Virement Final
Appropriation
Actual
Expenditure
Variance Expenditure as
% of final
appropriation
Final
Appropriation
Actual
Expenditure
Programme 6 Per Economic
classification
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments
Compensation of employees 49,520 49,520 47,765 1,755 96.5% 48,157 46,957
Goods and services 19,558 19,558 13,682 5,876 70.0% 17,385 14,340
Interest and rent on land 60 60 4 56 6.7% - 9
Transfers & subsidies
Provinces & municipalities - - 0.0% - 2
Departmental agencies &
accounts
Households - - 0.0% 24
Payment for capital assets
Buildings & other fixed
structures - - 0.0%
Machinery & equipment 205 205 179 26 87.3% 971 775
Payment for financial assets - - 0.0% - 85
Total 69,343 - - 69,343 61,630 7,713 88.9% 66,513 62,192
79
80
Vote 6- NW: ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION & TOURISM
Notes to the Appropriation Statement
For the year ended 31 March 2012
1. 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
Annual Financial Statements.
2. Detail of specifically and exclusively appropriated amounts voted (after Virement):
Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.
3. Detail on payments for financial assets
Detail of these transactions per programme can be viewed in the note to Payments for financial assets to the Annual Financial
Statements.
4. Explanations of material variances from Amounts Voted (after virement):
4.1 Per programme: Final
Appropriation
Actual
Expenditure
Variance Variance as
a % of Final
Approp.
R’000 R’000 R’000 %
Administration 109,257 51,762 57,495 53%
Included in Goods and services budget is R50m allocated for provincial growth fund, which has not been used pending
instruction from Provincial treasury. R0.400m was allocated for overseas travelling which was not undertaken. Non-fiiling of
vacant positions has resulted in an underspending of R3.760m on compensation of employees
Intergrated Economic Development Services 36,084 33,853 2,231 6%
Non filling of budgeted vacant positions and non-payment of performance bonus resulted in the underspending of R1.083m.
R0.927m savings on transfer payments is as a result of using less than what was budgeted for on feasiblity studies
conducted on identified projects.
Trade and Industry Promotion 193,650 190,976 2,674 1%
R0.500m allocated for Bio-diesel project under tranfer payments could not be transferred as the projects has been kept on
hold pending outcome of feasiblity studies.Non filling of budgeted vacant positions has resulted in an underspending of
R0.876m
Business Regulation and Governance 44,932 42,692 2,240 5%
Non filling of budgeted vacant positions as well as non-payment of performance bonus has resulted in an under-spending of
R1.544m on compensation of employees. This had also resulted in undespening on goods and services related to the
budgeted vacant positions
Economic Planning 4,776 3,813 963 20%
Non-filling of budgeted vacant positions as well as non-payment of performance bonus which was provided for has resulted
in an underspending of R0.811m on compensation of employees.
Environmental Services 69,343 61,630 7,713 11%
Delays in filling of vacated senior positions has resulted in under-spending of R1,7m on compensations of employees.
R2.8m allocated for projects could not be used due to evaluation process which could not be finalised before year end.
81
Vote 6- NW: ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION & TOURISM
Notes to the Appropriation Statement
For the year ended 31 March 2012
Final
Appropriation
Actual
Expenditure
Variance Variance as
a %
of Final
Approp.
4.2 Per economic classification: R’000 R’000 R’000 %
Current expenditure
Compensation of employees 115,107 105,249 9,858 8.6%
Goods and services 104,775 44,580 60,195 57.5%
Interest and rent on land 164 126 38 23.2%
Transfers and subsidies
Departmental agencies and accounts 206,534 205,603 931 0.5%
Public corporations and private enterprises 30,106 28,652 1,454 4.8%
Households 151 151 - 0.0%
Donations - 5 5 0.0%
Payments for capital assets
Machinery and equipment 1,125 908 217 19.3%
Software and other intangible assets 80 - 80 100%
Payments for financial assets 7 -7
Explanation of variance: Compensation of employees: Non-filling of vacated positions,
non-payment of performance bonuses. During the adjustment budget an amount of R3m
was transferred from within the allocated budget to cater for increase in administration
services brought about by the re-configuration of the department. These positions were
not filled during the year.
Goods and services: Included in goods and services is R50m allocated for provincial
growth fund. This amount was not used during the year pending the environmental
services:on Alien Plant removal and Development of Intergrated Waste Management
Plan. The evaluation process could not be finalised before end of year
Transfer Payments: An amount of R0.927m was saved on feasibility studies conducted
on identified projects. R0.500m for Bio-diesel project could not be transferred pending
the outcome of the feasibility study.
Payment on capital Assets: Appointment of service provider for the furnishing of the
MEC's boardroom and Auditorium could not be finalised before the end of the year.
Vote 6- NW: ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION & TOURISM
Statement of Financial Performance
For the year ended 31 March 2012
2011/12 2010/11
Note R'000 R'000
REVENUE
Annual appropriation 1 458,042 408,703
Departmental revenue 2 6,320 4,559
TOTAL REVENUE 464,362 413,262
EXPENDITURE
Current expenditure
Compensation of employees 3 105,249 99,609
Goods and services 4 44,025 42,397
Interest and rent on land 5 126 44
Total current expenditure 149,400 142,050
Transfers and subsidies
Transfers and subsidies 7 234,411 237,327
Total transfers and subsidies 234,411 237,327
Expenditure for capital assets
Tangible capital assets 8 908 2,541
Software and other intangible assets 8 - 65
Total expenditure for capital assets 908 2,606
Payments for financial assets 6 7 85
TOTAL EXPENDITURE 384,726 382,068
SURPLUS/(DEFICIT) FOR THE YEAR 79,636 31,194
Reconciliation of Net Surplus/(Deficit) for the year
Voted Funds 73,316 26,635
Annual appropriation 73,316 26,635
Departmental revenue and NRF Receipts 2 6,320 4,559
SURPLUS/(DEFICIT) FOR THE YEAR 79,636 31,194
82
Vote 6- NW: ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION & TOURISM
Statement of Financial Position
For the year ended 31 March 2012
2011/12 2010/11
Note R’000 R’000
ASSETS
Current Assets 8,943 4,907
Unauthorised expenditure 9 - 440
Cash and cash equivalents 10 8,611 4,393
Prepayments and advances 11 146 -
Receivables 12 186 74
TOTAL ASSETS 8,943 4,907
LIABILITIES
Current Liabilities 8,910 4,907
Voted funds to be surrendered to the Revenue Fund 13 8,906 4,281
Departmental revenue and NRF Receipts to be surrendered to the
Revenue Fund 14 - 126
Payables 15 4 500
TOTAL LIABILITIES 8,910 4,907
NET ASSETS 33 -
Represented by:
Recoverable revenue 33 -
TOTAL 33 -
83
Vote 6- NW: ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION & TOURISM
Statement of Changes in Net Assets
For the year ended 31 March 2012
2011/12 2010/11
Note R’000 R’000
Recoverable revenue
Opening balance - -
33 -
Debts raised 33
Closing balance 33 -
TOTAL 33 -
84
Vote 6- NW: ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION & TOURISM
Cash Flow Statement
For the year ended 31 March 2012
2011/12 2010/11
Note R’000 R’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts 484,401 459,766
Annual appropriated funds received 1.1 393,632 385,863
Departmental revenue received 2 90,769 73,903
Net (increase)/ decrease in working capital (314) 471
Surrendered to Revenue Fund (95,176) (80,420)
Current payments (149,400) (142,135)
Payments for financial assets (7) -
Transfers and subsidies paid (234,411) (237,327)
Net cash flow available from operating activities 16 5,093 355
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for capital assets 8 (908) (2,606)
Net cash flows from investing activities (908) (2,606)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase/ (decrease) in net assets 33 -
Net cash flows from financing activities 33 -
Net increase/ (decrease) in cash and cash equivalents 4,218 (2,251)
Cash and cash equivalents at beginning of period 4,393 6,644
Cash and cash equivalents at end of period 17 8,611 4,393
85
Vote 6- NW: ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION & TOURISM
Accounting Policies
For the year ended 31 March 2012
86
87
88
y
89
90
91
92
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Notes to the Annual Financial Statements
For the year ended 31 March 2012
1. Annual Appropriation
1.1 Annual Appropriation
Final
Appropriation
Actual Funds
Received
Funds not requested/
not received
Appropriation
Received
2010/11
Programmes R'000 R'000 R'000 R'000
Admnistration 109,257 58,745 50,512 44,495
Intergrated Economic Development Services 36,084 34,124 1,960 33,893
Trade and Industry Promotion 193,650 191,300 2,350 213,539
Business Regulation and Governance 44,932 42,964 1,968 26,994
Economic Planning 4,776 3,931 845 4,750
Enviromental Services 69,343 62,568 6,775 62,192
Total 458,042 393,632 64,410 385,863
2 Departmental revenue Note
2011/12
R'000
2010/11
R'000
Tax revenue 86,962 72,795
Sales of goods and services other than capital assets 2.1 3,242 83
Transactions in financial assets and liabilities 2.2 15 1,025
Fines, penalties and forfeits 2.3 550 -
Total revenue collected 90,769 73,903
Less: Departmental revenue budgeted * 14 84,449 69,344
Total 6,320 4,559
2.1 Sales of goods and services other than capital assets
Sales of goods and services produced by the department
Administrative fees 3,153 24
Other Sales 89 59
Total 3,242 83
2.2 Transactions in financial assets and liabilities
Other Receipts including Recoverable Revenue 15 1,025
Total 15 1,025
2.3 Fines, penalties and forfeits
Fines 550 -
550 -
93
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Notes to the Annual Financial Statements
For the year ended 31 March 2012
3 Compensation of employees Notes 2010/11
2011/12
R'000 R'000
3.1 Salaries and wages
Basic salary 73,104 68,511
Performance award 730 289
Service Based 115 86
Compensative/circumstantial 1,343 997
Other non-pensionable allowances 15,418 16,220
Total 90,710 86,103
3.2 Social contributions
Employer contributions
Pension 9,386 8,874
Medical 5,134 4,614
Bargaining council 19 18
Total 14,539 13,506
Total compensation of employees 105,249 99,609
Average number of employees 360 181
4 Goods and services
Advertising 500 515
Assets less then R5,000 4.1 153 506
Catering 1,815 1,427
Communication 2,191 2,421
Computer Services 4.2 374 323
Consultants, contractors and agency/outsourced services 4.3 6,758 6,043
Entertainment - 33
Audit cost – external 4.4 2,006 1,643
Government motor transport 3,399 1,514
Inventory 4.5 2,463 2,876
Operating leases 10,379 9,657
Property Payments 4.6 1,890 2,699
Transport provided as part of the departmental activities 231 11
Travel and subsistence 4.7 10,302 10,959
Venues and facilities 771 383
Training and staff development 519 941
Other operating expenditure 4.8 274 446
Total 44,025 42,397
94
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Notes to the Annual Financial Statements
For the year ended 31 March 2012
Notes
2011/12
R'000
2010/11
R'000
4.1 Assets less than R5,000
Tangible assets 153 506
Machinery and equipment 153 506
Intangible assets - -
Total 153 506
4.2 Computer Services
SITA computer services 101 97
External computer service providers 273 226
374 323
4.3 Consultants,Contractors and agency/outsourced services
Legal costs 210 42
Contractors 293
Agency and support/outsourced services 6,255 6,001
Total 6,758 6,043
4.4 External audit fees
Regulatory audits 2,006 1,643
Total 2,006 1,643
4.5 Inventory
Learning and teaching support material 10 3
Food and food supplies 80 81
Other consumable materials 328 489
Maintenance material 31 92
Stationery and printing 2,014 2,211
Total 2,463 2,876
4.6 Property Payments
Municipality services 194 47
Property maintenance and repairs 1,689 2,652
Other 7 -
Total 1,890 2,699
4.7 Travel and subsistence
Employee costs
Local 10,211 10,545
Foreign 91 414
Total 10,302 10,959
4.8 Other operating expenditure
Resettlement costs 77 88
Other 197 358
274 446
95
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Notes to the Annual Financial Statements
For the year ended 31 March 2012
Notes
2011/12
R’000
2010/11
R’000
5. Interest and rent on land
Interest expense 126 44
Total interest and rent on land 126 44
6 Payments for financial assets
Debts written off 6.1 7 85
7 85
6.1 Debts written off
Nature of debts written off
Staff debt written off 7 85
Total debt written off 7 85
7 Transfers and subsidies
Public corporations and private enterprises ANNEXURE
1A 232,755 230,039
Non-profit institutions ANNEXURE
1B 1,500 7,288
Households ANNEXURE
1C 151 -
Gifts and donations ANNEXURE
1D 5
Total 234,411 237,327
8. Expenditure on capital assets
Machinery and equipment 28 908 2,541
Total 908 2,541
Software and other intangible assets - 65
Total 65
8.1 Analysis of funds utilised to acquire capital assets - 2011/12
Voted Funds
R'000
Aid assistance
R'000
TOTAL
R'000
Tangible assets 908 - 908
Machinery and equipment 908 908
Total 908 - 908
96
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Notes to the Annual Financial Statements
For the year ended 31 March 2012
8.2 Analysis of funds utilised to acquire capital assets – 2010/11
Voted Funds
R’000
Aid assistance
R’000
TOTAL
R’000
Tangible assets 2,541 2,541
Machinery and equipment 2,541 2,541
Software and other intangible assets 65 65
Computer software 65 65
Total 2,606 2,606
9 Unauthorised expenditure Notes
2011/12
R’000
2010/11
R’000
9.1 Reconciliation of unauthorised expenditure
Opening balance 440 440
Less: Amount approved by Legislature with Funding (440) -
Unauthorised expenditure awaiting authorisation - 440
9.2 Analysis of unauthorised expenditure awaiting authorisation
per economic classification
Current - 440
Total - 440
9.3 Analysis of unathorised expenditure awaiting authorization per type
Unauthorised expenditure incurred not in accordance with the purpose
of the vote or main division - 440
Total - 440
10 Cash and cash equivalents
Consolidated Paymaster General Account 8,611 4,393
Total 8,611 4,393
11 Prepayments and Advances
Travel and subsistence 146 -
146 -
97
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Notes to the Annual Financial Statements
For the year ended 31 March 2012
12 Receivables
2011/12 2010/11
Less than one year
One to three years
Older than three years Total Total
R’000 R’000 R’000 R’000 R’000
Claims recoverable 12.1 26 26 5
Recoverable expenditure 12.2 9 9 6
Staff debtors 12.3 147 147 63
Other debtors 12.4 4 4 -
Total 186 - - 186 74
2011/12
R’000
2010/11
R’000
12.1 Claims recoverable
Provincial departments 26 5
Total 26 5
12.2 Recoverable Expenditure
Disallowance expenditure 9 -
Salary reversal - 6
Total 9 6
12.3 Staff debtors
GG Accidents 25 -
Tax Debt 25 4
Telephone Debt 40 40
Salary overpayment 46 8
Debt out of service 11 11
Total 147 63
12.4 Other debtors
Salary income tax 4 -
4 -
13 Voted funds to be surrendered to the Revenue Fund
Opening balance 4,281 7,129
Transfer from Statement of Financial Performance 73,316 26,635
Voted funds not requested (64,410) (22,840)
Paid during the year (4,281) (6,643)
Closing balance 8,906 4,281
98
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Notes to the Annual Financial Statements
For the year ended 31 March 2012
Notes
2011/12
R’000
2010/11
R’000
14 Departmental revenue to be surrendered to the Revenue Fund
Opening balance 126 -
Transfer from Statement of Financial Performance 6,320 4,559
Own revenue included in appropriation 2 84,449 69,344
Paid during the year (90,895) (73,777)
Closing Balance - 126
15 Payables - current
Clearing accounts 15.1 1 4
Other payables 15.2 3 496
Total 4 500
15.1 Clearing accounts
Salary income tax 1 4
Total 1 4
15.2 Other payables
Tshwarelo enterprise EBT Rejection 3 -
Outstanding Persal cheque - 132
Outstanding Payment Suppliers - 357
Outstanding salaries - 7
Total 3 496
16 Net cash flow available from operating activities
Net surplus/(deficit) as per Statement of Financial Performance 79,636 26,873
Add back non cash/cash movements not deemed operating activities (74,543) (26,518)
(Increase)/decrease in receivables – current (112) (29)
(Increase)/decrease in prepayments and advances (146) -
(Increase)/decrease in other current assets 440 -
Increase/(decrease) in payables – current (496) 500
Expenditure on capital assets 908 2,606
Surrenders to revenue fund (95,176) (80,420)
Voted funds not requested/received (64,410) (18,519)
Own revenue included in appropriation 84,449 69,344
5,093 355 Net cash flow generated by operating activities
99
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Notes to the Annual Financial Statements
For the year ended 31 March 2012
17 Reconciliation of cash and cash equivalents for cash flow purposes
Consolidated Paymaster General Account 8,611 4,393
Total 8,611 4,393
100
101
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Disclosure Notes to the Annual Financial Statements
For the year ended 31 March 2012
Note
2011/12
R'000
2010/11
R'000
18 Contingent liabilities
Liable to Nature
Housing loan guarantees Employees ANNEXURE
2A 123 104
Claims against the Department ANNEXURE
3A 562 580
Total 685 684
19 Commitments
Current expenditure 6,024 8,549
Approved and contracted 6,024 8,549
Capital Expenditure 1,234 1,234
Approved and contracted 1,234 1,234
Total Commitments 7,258 9,783
20 Accruals
30 Days 30+ Days Total Total
Listed by economic classification
Goods and services 1,149 1,149 2,251
Capital assets 8
Total 1,149 1,149 2,259
Listed by programme level
Administration 514 1095
Intergrated Economic Development Service 83 10
Trade and Industry Promotion 75 522
Business Regulation and Governance 40 254
Economic Planning 16 103
Environmental Services 421 275
Total 1,149 2,259
Confirmed Balances with departments - 365
Total - 365
21 Employee benefit provisions
Leave entitlement 5,176 4,015
Thirteenth cheque 3,155 2,991
Performance awards 1,830 1,817
Capped leave commitments 6,856 4,032
Total 17,017 12,855
102
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Disclosure Notes to the Annual Financial Statements
For the year ended 31 March 2012
22 Lease Commitments
22.1 Operating Lease expenditure
Land
Buildings & other
fixed structures
Machinery and
equipment Total
R'000 R'000 R'000 R'000
2011/12
Not later than 1 year 5,734 5,734
Later than 1 year and not later than 5 years 312 312
Total lease Commitments - 6,046 - 6,046
2010/11
Not later than 1 year 9,462 172 9,634
Later than 1 year and not later than 5 years 5,539 133 5,672
Total lease Commitments - 15,001 305 15,306
22.2 Finance Lease Expenditure
Land
Buildings & other
fixed structures
Machinery and
equipment Total
R'000 R'000 R'000 R'000
2011/12
Not later than 1 year 467 467
Later than 1 year and not later than 5 years 408 408
Later than five years - -
Total lease commitments 875 875
LESS: finance costs 89 89
Total present value of lease liabilities 786 786
2010/11
Not later than 1 year 304 304
Later than 1 year and not later than 5 years 81 81
Later than five years - -
Total lease commitments 385 385
LESS: finance costs 27 27
Total present value of lease liabilities 358 358
103
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Disclosure Notes to the Annual Financial Statements
For the year ended 31 March 2012
Note
2011/12
R'000
2010/11
R'000
23 Receivables for departmental revenue
Tax revenue 7,096 6,239
Other 226 226
Total 7,322 6,465
Analysis of receivables for departmental revenue
Opening balance 6,465
Less: Amounts received 6,239
Add: Amounts recognised 7,096 6,465
Closing balance 7,322 6,465
24 Irregular expenditure
24.1 Reconciliation of irregular expenditure
Opening balance 14,592 14,378
Add: Irregular expenditure - relating to current year 2,223 3,104
Less: Amounts condoned (1,938) (2,890)
Irregular expenditure awaiting condonation 14,877 14,592
Analysis of awaiting condonation per age classification
Current year 1,791 1,185
Prior years 13,086 13,407
Total 14,877 14,592
24.2 Details of irregular expenditure - current year
Incident Disciplinary steps taken/criminal proceedings `2011/12
Payment for accommodation above threshold made without DBAC approval None 108
Payment made with expired contract None 117
Payment made for price adjustment made without DBAC approval None 8
Payment made for grocery for the needy without DBAC approval None 74
Accommodation payment made without DBAC approval None 164
Payment for advert above threshold without DBAC approval None 89
Payment of acting allowance for more than 12 months None 122
Payment for printing of annual report above threshold not approved by DBAC None 101
Payments made on appointments made without adverts None 433
Payment on leased machines (RT contracts) None 567
Payment made with one quotation None 5
Payment made without tax clearance certificate: OFUSS projects None 44
Payments made without 3 quotations None 391
2,223
104
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Disclosure Notes to the Annual Financial Statements
For the year ended 31 March 2012
2011/12
R’000
24.3 Details of irregular expenditure condoned
Incident Condoned by (condoning authority)
Accommodation payment above threshold DBAC (190)
Payment made with expired contract DBAC (55)
Payment for printing of annual report DBAC (101)
Payment made for advert DBAC (78)
Price adjustment on security contract DBAC (8)
Overspending on Mega Expo DBAC (934)
Price adjustment on security contract (2011) DBAC (97)
Payment for outside broadcast (2011) DBAC (75)
Payment for MEC's furniture DBAC (21)
Payment speech for catering DBAC (112)
Payment above threshold SHANGAI DBAC (267)
(1,938)
2011/12 2010/11
25 Fruitless and wasteful expenditure R’000 R’000
25.1 Reconciliation of fruitless and wasteful expenditure
Opening balance 76 -
Fruitless and wasteful expenditure – relating to current year 103 205
Less: Amounts condoned - (129)
Fruitless and wasteful expenditure awaiting condonement 179 76
25.2 Analysis of awaiting condonement per economic classification
Current 179 76
Total 179 76
25.3 Analysis of Current Year's Fruitless and wasteful expenditure
2011/12
Incident Disciplinary Steps taken/Criminal proceedings R’000
Interest paid on overdue accounts 38
Penalty charged on non-submission of logsheet on due dates 10
Re-advertising costs: Errata 10
Penalty for not meeting contractual obligations 45
103
105
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Disclosure Notes to the Annual Financial Statements
For the year ended 31 March 2012
2011/12 2010/11
R’000 R’000
26 Related party transactions
Payment made
Goods and services 1,000 99
Total 1,000 99
The Following companies are Public Entities of the Department: Mafikeng Industrial Development Zone, North West Development Corporation, Invest North West, North West Parks and Tourism Board and Gambling Board. Annexure 1A entails all payments made to these entities. The above disclosed amount relates to the amount paid by the department for forensic investigation conducted at Parks Board
27 Key management personnel
No. of
Individuals
Political office bearers:
Member of Executive Council 1 1,566 1,468
Officials:
Level 15 to 16 1 - 1,523
Level 14 (incl CFO if at a lower level) 8 5,419 4,523
Total 6,985 7,514
Salary in relation to the Head of Department has not been included in above calculation. The incumbent has been seconded to the office of the Premier as Acting Director General and the department has been reimbursed for his services.
106
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Disclosure Notes to the Annual Financial Statements
For the year ended 31 March 2012
28 Movable Tangible Capital Assets
MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012
Opening balance
Current year adjustments to prior year
balances Additions Disposals Closing balance
R'000 R'000 R'000 R'000 R'000
MACHINERY AND EQUIPMENT 11,482 - 908 462 11,928
Transport assets 1,302 1,302
Computer equipment 4,432 284 - 4,716
Furniture and office equipment 3,742 624 462 3,904
Other machinery and equipment 2,006 - 2,006
TOTAL MOVABLE TANGIBLE CAPITAL
ASSETS 11,482 - 908 462 11,928
Additions
28.1 ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012
Cash Non-cash
(Capital work-in-
progress current
costs and finance
lease payments)
Received current, not paid
(Paid current
year, received
prior year Total
R'000 R'000 R'000 R'000 R'000
MACHINERY AND EQUIPMENT 908 - - - 908
Transport assets - -
Computer equipment 284 284
Furniture and office equipment 624 624
Other machinery and equipment - -
TOTAL ADDITIONS TO MOVABLE
TANGIBLE CAPITAL ASSETS 908 - - - 908
Disposals 28.2 DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH
2012
MACHINERY AND EQUIPMENT Sold for cash
Transfer out or
destroyed or
scrapped Total
disposals
Cash received
Actual
R'000 R'000 R'000 R'000
Computer equipment - - - -
Furniture and office equipment - 462 462 -
TOTAL DISPOSAL OF MOVABLE
TANGIBLE CAPITAL ASSETS 462 462 -
107
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Disclosure Notes to the Annual Financial Statements
For the year ended 31 March 2012
Movement for 2010/11
28.3 MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011
Opening balance
Current year
adjustments to prior year
balances Additions Disposals Closing balance
R'000 R'000 R'000 R'000 R'000
MACHINERY AND EQUIPMENT 3,297 8,890 705 11,482
Transport assets - 1,987 685 1,302
Computer equipment 1,312 3,140 20 4,432
Furniture and office equipment 1,322 2,420 3,742
Other Office Equipment 663 1,343 2,006
TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 3,297 8,890 705 11,482
Minor assets
28.4 MOVEMENT IN MINOR ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012
Intangible
assets Heritage
assets
Machinery and
equipment Biological
assets Total
R'000 R'000 R'000 R'000 R'000
Opening balance 13,062 13,062
Current year adjustments to prior year balances
Additions 153 153
Disposals 7 7
TOTAL MINOR ASSETS 13,208 13,208
Intangible
assets Heritage
assets
Machinery and
equipment Biological
assets Total
Number of R1 minor assets - -
Number of minor assets at cost 6,990 6,990
TOTAL NUMBER OF MINOR ASSETS - - 6,990 - 6,990
MOVEMENT IN MINOR ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011
Intangible
assets Heritage
assets
Machinery &
equipment Biological
assets Total
R'000 R'000 R'000 R'000 R'000
Opening balance 6,999 6,999
Current year adjustments to prior year balances 4 4
Additions 6,064 6,064
Disposals 5 5
TOTAL MINOR ASSETS 13,062 13,062
Intangible
assets Heritage
assets
Machinery and
equipment Biological
assets Total
Number of minor assets 6,941 6,941
TOTAL - - 6,941 - 6,941
108
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Disclosure Notes to the Annual Financial Statements
For the year ended 31 March 2012
Movable assets written off
28.5 MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2012
Intangible
assets Heritage
assets
Machinery and
equipment Biological
assets Total
Assets written off 79 79
TOTAL MOVABLE ASSETS WRITTEN OFF - - 79 - 79
MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2011
Intangible
assets Heritage
assets
Machinery and
equipment Biological
assets Total
Assets written off 5 5
TOTAL MOVABLE ASSETS WRITTEN OFF - - 5 - 5
29 Intangible Capital Assets
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012
Opening balance
Current year adjustments to prior year
balances Additions Disposals Closing balance
R'000 R'000 R'000 R'000 R'000
Computer software 65 65
TOTAL INTANGIBLE CAPITAL ASSETS 65 - - - 65
Movement for 2010/11
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011
Opening balance Additions Disposals
Closing balance
R'000 R'000
Computer software 65 65
TOTAL INTANGIBLE CAPITAL ASSETS - 65 - 65
109
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Disclosure Notes to the Annual Financial Statements
For the year ended 31 March 2012
30 TRANSFER OF FUNCTIONS
During 2010/11 Financial year a decision was taken to re-configure the department of Economic Development and Tourism by transferring Environmental Services programme from DARD. The incorporation of this programme has necessitated the review of the organizational structure
30.1 Statement of Financial Position
Bal per dept
2010/11 AFS before
transfer
Functions per dept
(transferred) / received
Functions per dept
(transferred) / received
Functions per dept
(transferred) / received
2010/11 Bal after transfer
2010/11 2010/11 2010/11 2010/11 2010/11
R'000 R'000 R'000 R'000 R'000
ASSETS
Current Assets 4,907 - - - 4,907
Unauthorised expenditure 440 440
Fruitless & wasteful expenditure -
Cash and cash equivalents 4,393 4,393
Other financial assets -
Prepayments and advances -
Receivables 74 74
Loans -
Aid assistance receivable -
Non-Current Assets - - - - -
Investments -
Loans -
Other financial assets -
TOTAL ASSETS 4,907 - - - 4,907
LIABILITIES
Current Liabilities 4,907 - - - 4,907
Voted funds to be surrendered to the Revenue Fund 4,281 4,281
Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund 126 126
Direct Exchequer Receipts to be surrendered to the Revenue Fund -
Bank overdraft -
Payables 500 500
Aid assistance repayable -
Aid assistance unutilised -
Non-Current Liabilities - - - - -
Payables -
TOTAL LIABILITIES 4,907 - - - 4,907
NET ASSETS - - - - -
110
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Disclosure Notes to the Annual Financial Statements
For the year ended 31 March 2012
30.2 Disclosure Notes
Bal per dept
2010/11 AFS
before transfer
Functions per dept
(transferred) / received
Functions per dept
(transferred) / received
Functions per dept
(transferred) / received
2010/11 Bal
after transfer
2010/11 2010/11 2010/11 2010/11 2010/11
R'000 R'000 R'000 R'000 R'000
Contingent liabilities 220 464 684
Contingent assets -
Commitments 9,783 9,783
Accruals 1,984 275 2,259
Employee benefits 8,254 4,601 12,855
Lease commitments - operating lease 15,306 15,306
Lease commitments - finance lease 358 358
Lease commitments - operating lease revenue -
Receivables for departmental revenue 6,465 6,465
Irregular expenditure 14,592 14,592
Fruitless & wasteful expenditure 76 76
Impairment & other provisions -
Movable tangible capital assets 4,037 7,445 11,482
Immovable tangible capital assets -
Intangible capital assets -
All assets transferred from Department of Agriculture and Rural Development were verified and signed for by both Head of Departments
111
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Annexures to the Annual Financial Statements
For the year ended 31 March 2012
ANNEXURE 1A
STATEMENT OF TRANSFERS/SUBSIDIES TO PUBLIC CORPORATIONS AND PRIVATE ENTERPRISES
TRANSFER ALLOCATION EXPENDITURE 2010/11
NAME OF PUBLIC CORPORATION/PRIVATE ENTERPRISE
Adjusted appropriation
Act Roll
Overs Adjustments
Total Available
Actual Transfer
% of Available
funds transferred Capital Current
Appro-priation
Act
Public Corporations R'000 R'000 R'000 R'000 R'000 % R'000 R'000 R'000
Transfers
North West Parks & Tourism
- Operations 127,328 127,328 127,328 100% 127,328 126,724
- Infrastructure 9,670 9,670 9,670 100% 9,670 8,000
Invest North West 19,627 19,627 19,627 100% 19,627 17,402
Gambling Board 28,505 28,505 28,504 100% - 28,504 20,277
MIDZ (operations) 10,078 10,078 10,078 100% 10,078 8,969
MIDZ (Infrastructure) 2,691 2,691 2,691 100% 2,691 18,300
NWDC (Project) 36,686 34,804 5,000 29,805 40,600
Theta 55 53 52 50
Donations 50
TOTAL 234,640 - - 197,899 232,755 17,361 215,394 240,372
ANNEXURE 1B
STATEMENT OF TRANSFERS TO NON-PROFIT INSTITUTIONS
TRANSFER ALLOCATION EXPENDITURE 2010/11
NON-PROFIT INSTITUTIONS
Adjusted appropriation
Act Roll Overs Adjustments Total
Available Actual
Transfer
% of Available
funds transferred
Appro-priation Act
R'000 R'000 R'000 R'000 R'000 % R'000
Transfers
Madikwe Sisal 1,000 1,000 1,000 100% 2,000
Wild Silk 500 500 500 100% 6,000
Bio-diesel 500 500 - 0% 1,000
Total 2,000 - - 2,000 1,500 9,000
ANNEXURE 1C
STATEMENT OF TRANSFERS TO HOUSEHOLDS
TRANSFER ALLOCATION EXPENDITURE 2010/11
HOUSEHOLDS
Adjusted appropriation
Act Roll Overs Adjustments Total
Available Actual
Transfer
% of Available
funds transferred
Appro-priation Act
R'000 R'000 R'000 R'000 R'000 % R'000
Transfers
Leave Gratuity 151 151 151 100%
Total 151 - - 151 151 -
ANNEXURE 1D
STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE AND REMISSIONS, REFUNDS AND PAYMENTS MADE AS AN ACT OF GRACE
NATURE OF GIFT, DONATION OR SPONSORSHIP 2011/12 2010/11
R'000 R'000
Paid in cash
Sponsorship for 2010 Tourism award winner university of North West 5
Subtotal 5 -
Vote O6: NW: Economic Development, Environment, Conservation and Tourism
Annexures to the Annual Financial Statements
For the year ended 31 March 2012
ANNEXURE 2A
STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2012 - LOCAL
GUARANTOR INSTITUTION
Stannic
Gurarantee in respect
of Housing
original guaranteed
capital
amount
Opening balance 1 April
2011
Guarantees draw
downs during the
year
Guaranteed repayments/ cancelled/ reduced/ released
during the
year Revaluations
Closing balance
31 March
2012
Guaranteed interest for year ended 31 March
2011
Realised losses not
recoverable i.e. claims
paid out
R'000 R'000 R'000 R'000 R'000 R'000 R'000
ABSA 758 64 24 40
Nedbank 200 40 40
Standard Bank 98 19 19
First Rand Bank 129 24 24
- -
-
-
Total 1,185 104 43 24 - 123 - -
ANNEXURE 3A
STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2012
Nature of liability
Opening balance
1 April 2011 Liabilities incurred
during the year
Liabilities paid/ cancelled/
reduced during the year
Liabilites recoverable
(Provide details hereunder)
Closing balance
31 March 2012
R'000 R'000 R'000 R'000 R'000
Claims against the department
Appeal Pick and pay 100 100 -
Payments of logsheets under dispute 80 82 162
Van Rensberg 400 400
-
Total 580 82 100 - 562
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
d
136
137
138
139
5. OTHER INFORMATION
ACRONYMS
AEL - Atmospheric Emission License
BAS - Basic Account System
BCA - Biodiversity Conservation Area
DPSA - Department of Public Service Administration
COP17 - Conference of Parties no. 17
CSIR - Council for Scientific and Industrial Research
DCA - Damage Causing Animal
DEDECT - Department of Economic Development, Environment, Conservation and
Tourism
DTI - Department of Trade and Industry
EIA - Environmental Impact Assessment
EE Centres - Environmental Educational Centres
EIP - Environmental Implementation Plan
EMF - Environmental Management Framework
LED - Local Economic Development
HOD - Head of Department
IDP - Integrated Development Plan
IHI _ Index of Habitat Integrity
INW - Invest North West
MEC - Member of Executive Council
MINMEC - Ministers and Member of Executive Council
MOA’s - Memorandum of Agreements
MIDZ - Mafikeng Industrial Development Zone
NEMBA - National Environmental Management Biodiversity Act
NEMPAA - National Environmental Management Protected Areas Act
NWDC - North West Development Corporation
NWGB - North West Gambling Board
NWP&TB - North West Parks and Tourism Board
140
OHS - Occupational Health Safety
PGDS - Provincial Growth Development and Strategy
PFMA - Public Finance Management Act
PPP - Public Private Partnership
QPR - Quarterly Performance Report
SMs - Senior Management Services
SDI - Spatial Development Initiatives
SCOPA - Standing Committee on Public Accounts
SABS - South African Bureau of Standards
SMMEs - Small Medium Micro Enterprises
SOE - State-Owned Enterprises
SAQA - South African Qualification Authority
S24G - Section 24G
UNESCO - United Nation Education Scientific and Cultural Organization
WIS - Waste Information System
141
LIST OF CONTACT DETAILS
NAME AND SURNAME CONTACT
1.Mr Motsepe Moiloanyane 018 3877 850
2. Ms Constance Molosiwa 018 3877 743
3. Mr K. Sehularo 018 3877720
4. Mr. David Asuamah 018 3877 782
5. Ms Lorato Gasealahwe 018 3877 787
142
Development House (NWDC Building)
1st Floor
Corner Provident Str. & University Drive
Mmabatho, 2735
Tel: (018) 387 7771
Fax: (018) 384 4788 / 387 7901
Pr 272/2012
ISBN: 978-0-621-41125-6
Pri
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(01
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(D04
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