DHS Annual Report 2010-2011 B

DEPARTMENT OF HUMAN SETTLEMENTS
Vote 30, Annual Report for the year ended 31 March 2011
RP93/2011 ISBN 978-0-621-40113-4
Compliance with laws and regulations
REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON VOTE NO. 30: NATIONAL DEPARTMENT OF HUMAN SETTLEMENTS
Annual financial statements, performance and annual reports 21. The accounting officer submitted financial statements for auditing that were not prepared in all material aspects in accordance with generally recognised accounting framework prescribed by the National Treasury, as required by sections 40(1)(a) and (b) of the PFMA. The material misstatements identified by the AGSA with regard to the disclosure items were subsequently corrected. Expenditure management 22. The accounting officer did not take effective and/or appropriate steps to prevent irregular expenditure, as per the requirements of section 38(1)(c)(ii) of the PFMA and TR 9.1.1. 23. Payments due to creditors were not always settled within 30 days from receipt of an invoice as per the requirements of section 38(1)(f) of the PFMA and TR 8.2.3. Procurement and contract management 24. Invitations for competitive bidding were not advertised for a minimum period of 21 days as per the requirements of TR 16A6.3(c). 25. The evaluation criteria and system to be used in awarding preference points for the procurement were not specified in the bidding documents, nor did it specify the maximum points to be awarded for Historically Disadvantaged Individual (HDI), as required by section 7 of the Preferential Procurement Policy Framework, 2000 (Act No. 5 of 2000). Transfer of funds and/or conditional grants 26. The accounting officer did not complete and submit to the National Treasury, the compliance certificate as required by section 10(1)(a) of Division of Revenue Act, 2010 (Act No 1 of 2010) (DoRA) by 15 April 2011, in respect of the Rural Household Infrastructure grant. INTERNAL CONTROL 27. In accordance with the PAA and in terms of General Notice 1111 of 2010, issued in Government Gazette 33872 of 15 December 2010, I considered internal control relevant to my audit, but not for the purpose of expressing an opinion on the effectiveness of internal control. The matters reported below 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 28. The accounting officer did not exercise oversight responsibility regarding financial and performance reporting and compliance with laws and regulations and related internal controls. Financial and performance management 29. Management did not prepare regular, accurate and complete financial and performance reports that are supported and evidenced by reliable information. 30. Management did not review and monitor compliance laws and regulations.
Pretoria 31 July 2011
141
142
Appropriation per Programme 2010/11 2009/10 Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 9 191 9 191 (3 815) 43 871 116 335 9 855 81 006 207 196 (16 400) 42 440 1 096 216 204 529 32 636 101 078 9 837 47 460 158 375 40 283 42 559 31 903 221 188 188 577 32 611 10 656 12 567 11 235 15 257 18 33 546 48 821 2 157 94.9% 86.9% 99.8% 58.6% 75.0% 94.4% 48.3% 15 697 8 340 7 357 5 5 100.0% 53.1% 205 486 180 232 25 254 87.7% Variance R000 (994) 5 989 (664) 210 454 - (3 815) (31 680) 5 855 25 825 (266) (17 759) 159 053 140 8 577 167 770 65 499 1 676 67,175 159,024 7 064 3 418 169 506 50 914 197 289 14 708 211 997 47 038 6 642 47 686 165 774 4 000 55 447 225 221 59 965 Final Appropriation R000 Actual Expenditure R000 Expenditure as % of Final Appropriation R000 Final Appropriation R000 Actual Expenditure R000 109 578 135 4 136 113 849 44 651 320 44,971 90,782 7 012 795 98 589 41 046 APPROPRIATION STATEMENT for the year ended 31 March 2011 - (18 025) (1 125)
Appropriation Statement
1. Administration
Current payment
Transfers and subsidies
Payment for capital assets
Payment for financial assets
2. Housing Policy Research and Monitoring
Current payment
3. Housing Planning and Delivery Support
Current payment
4. Housing Development Finance
Current payment
Appropriation per programme 2010/11 2009/10
Transfers and subsidies 101 474 15 649 195 154 397 141 753 1 001 2 355 145 109 87 384 16 091 953 16 291 759 16 091 953 912 684 85 788 1 000 2 263 157 660 16 291 759 16 291 759 - 16 291 759 - (12 551) 637 (545) 1 (638) (12 006) 55 965 317 1 443 57 725 199 806 199 806 25 200 15 674 395 15 624 981 49 414 60.5% 68.3% 38.7% 98.8% 98.8% 120 101 594 62 071 39 523 61.1%
Adjusted Appropriation R000 15 487 756 Shifting of Funds R000 1 005 Variance R000 7 734 1 345 -
Final Actual Appropria- ExpendiVirement tion ture R000 R000 R000 41 600 15 530 361 15 522 627
Expenditure as % of final apFinal propria- Appropriation tion % R000 100.0% 12 981 436
Actual Expenditure R000 12 944 894 358 13 033 695 12 986 298 161 047 1 529 4 083 166 659 124 999 911 744 126 654 13 604 805 13 370 361 13 604 805 13 370 361
5. Strategic Relations and Governance
Current payment
APPROPRIATION STATEMENT for the year ended 31 March 2011
Subtotal
Statutory Appropriation
Current payment
TOTAL
TOTAL (brought forward)
143
144
Appropriation per programme 2010/11 2009/10 Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 Variance R000 Final Appropriation R000 Actual Expenditure R000 Expenditure as % of final appropriation % Final Appropriation R000 Actual Expenditure R000 2 826 1 798 16 296 383 749 13 605 554 APPROPRIATION STATEMENT for the year ended 31 March 2011 1 798 1 463 16 093 751 13 371 824
Reconciliation with Statement of Financial Performance
ADD
Departmental receipts
Direct Exchequer receipts
Aid assistance
Actual amounts per statement of financial performance (total revenue)
ADD
Aid assistance
Direct Exchequer payments
Prior year unauthorised expenditure approved without funding
Actual amounts per statement of financial performance (total expenditure)
Appropriation per economic classification 2010/11 Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 (37 505) (3 250) (34) 751 173 578 23.0% 307 518 222 457 85 061 72.3% 409 499 357 240 095 216 455 23 640 90.2% 185 438 Variance R000 (11 406) (24 204) 300 156 414 254 173 250 289 006 334 972 485 Final Appropriation R000 Actual Expenditure R000 Expenditure as % of Final Approprtion Final Appropriation R000 Actual Expenditure R000 2009/10
Current payments
Compensation of employees
Goods and services
Interest and rent on land
Transfers and subsidies 15 175 563 312 193 1 000 4 006 7 076 11 082 10 917 1 000 684 316 165 41 600 353 793 346 193 7 600 15 175 563 15 175 563 100.0% 97.9% 68.4% 98.5% 12 592 276 12 592 276 389 075 1 000 109 7 709 352 613 745 108 7 210 -
Provinces and municipalities
Departmental agencies and accounts
Universities and technikons
Foreign governments and international organisations
Public corporations and private enterprises
Non-profit institutions
Households
APPROPRIATION STATEMENT for the year ended 31 March 2011
Gifts and donations
Payments for capital assets 153 060 18 831 2 643 16 291 759 144 209 (82) 3 001 (729) 24 880 177 940 21 103 2 705 209 16 291 759 108 559 10 383 370 199 16 091 953 69 381 10 720 2 335 10 199 806 61.0% 49.2% 13.7% 95.2% 98.8% 152 16 390 2 554 246 5 724 626 222 13 604 805 13 370 361
Buildings and other fixed structures
Machinery and equipment
Heritage assets
Specialised military assets
Biological assets
Land and subsoil assets
Software and other intangible assets
Payments for financial assets
145
Total
146
Statutory Appropriation 2010/11 2009/10 Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 Variance R000 Actual Expenditure R000 Final Appropriation R000 Expenditure as % of Final Appropriation Final Appropriation R000 Actual Expenditure R000 APPROPRIATION STATEMENT for the year ended 31 March 2011 -
Direct changes against the National/Provincial Revenue Fund
List all direct charges against the National/Provincial Revenue Fund
President and Deputy President salaries
Member of Executive Committee / parliamentary officer
Judges and magistrates salaries
Sector education and training authorities (SETA)
National Skills Fund
Total
2010/11
2009/10
Programme 1: Administration Detail per sub-programme Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 1 825 1 825 100.0% Variance R000 9 1 729 1 816 Final Appropriation R000 Actual Expenditure R000 Final Appropriation R000
Expenditure as % of Final Appropriation Actual Expenditure R000 1 718 -
1.1 Minister
Current payment
1.2 Deputy Minister 1 496 1 854 1 840 358 14 99.2% 1 275 1 275 -
Current payment
DETAIL PER PROGRAMME 1 ADMINISTRATION for the year ended 31 March 2011
1.3 Management 83 212 2 609 407 5 (745) 17 540 100 007 5 3 016 87 774 5 1 130 12 233 1 886 87.8% 100.0% 37.5% 74 428 135 3 288 54 895 130 2 068 -
Current payment
1.4 Corporate Services 86 244 (616) (8 349) 77 279 65 667 11 612 85.4% 72 071 5 47 614 5
Current payment
147
148
2010/11 2009/10 Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 12 681 7 210 5 471 56.9% Variance R000 582 5 289 12 099 Final Appropriation R000 Actual Expenditure R000 Expenditure as % of final appropriation % Final Appropriation R000 Actual Expenditure R000 2 068 24 521 221 188 188 577 211 997 9 191 32 611 24 521 23 126 1 395 94.3% 85.3% 9 550 167 770 113 849 4 076 DETAIL PER PROGRAMME 1 ADMINISTRATION for the year ended 31 March 2011
Programme 1: Administration Detail per sub-programme
1.5 Office accommodation
Current payment
Total
Appropriation per economic classification 2010/11 2009/10
Programme 1: Administration Per Economic classification Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 (12 437) 21 628 281 62 219 127 126 106 674 20 452 77 998 73 423 4 575 94.1% 83.9% 22.1% Variance R000 (2 684) 1 513 96 93 119 103 985 185 Final Appropriation R000 Actual Expenditure R000 Final Appropriation R000
Expenditure as % of Final Appropriation
Actual Expenditure R000 63 073 95 610 201 55 146 54 166 116
Current payments
Goods and services
Transfers and subsidies 5 5 5 100.0% 109 31 108 27 -
DETAIL PER PROGRAMME 1 ADMINISTRATION for the year ended 31 March 2011
Households
Gifts and donations
Payments for capital assets 12 418 989 13 407 8 169 5 238 60.9% 152 7 580 3 800 -
Heritage assets
149
150
Appropriation per economic classification 2010/11 2009/10 Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 9 191 221 188 188 577 81 73 8 32 611 2 290 171 2 119 7.5% 90.1% 85.3% 81 2 290 211 997 Final Appropriation R000 Actual Expenditure R000 Expenditure as % of final appropriaVariance tion R000 % 846 168 167 770 Final ApActual propriaExpendition ture R000 R000 336 150 113 849 DETAIL PER PROGRAMME 1 ADMINISTRATION for the year ended 31 March 2011
Programme 1: Administration Per Economic classification
Biological assets
Total
2010/11 Expenditure as % of Final Appropriation Final Appropriation R000 2 159 62.2% 55 -
2009/10
Programme 2: Housing Policy, Research and Monitoring Detail per sub-programme Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 45 28 17 2 574 2 366 208 91.9% Variance R000 (29) 29 2 603 16 Final Appropriation R000 Actual Expenditure R000
Actual Expenditure R000 1 657 21 -
2.1 Management
Current payment
2.2 Policy Development 9 903 338 338 190 190 189 113 (190) (315) 9 398 7 459 1 939 1 225 79.4% 99.5% 33.4% 9 636 335 7 237 94 -
Current payment
2.3 Research 15 334 88 50 (50) (3 500) 11 784 138 7 648 37 4 136 101 64.9% 26.8% 10 063 609 5 095 69 -
Current payment
DETAIL PER PROGRAMME 2 HOUSING POLICY, RESEARCH AND MONITORING for the year ended 31 March 2011
2.4 Monitoring and Evaluation 19 198 6 200 47 686 (395) 20 375 (3 815) 18 803 26 575 43 871 14 430 15 351 32 636 4 373 11 224 11 235 76.7% 57.7% 61.0% 74.4% 43 641 677 67 175 30 662 136 44 971
Current payment
151
Total
152
2010/11 2009/10 Expenditure as % of Final Appropriation Final Appropriation R000 22 550 42 893 27.8% 55 Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 (2 492) (1 323) 90 25 65 18 396 11 988 6 408 24 073 19 890 4 183 82.6% 65.2% Variance R000 (598) (106) 40 Actual Expenditure R000 27 163 19 825 50 Final Appropriation R000 Actual Expenditure R000 16 811 27 804 34 216 6 210 204 12 94.4% DETAIL PER PROGRAMME 2 HOUSING POLICY, RESEARCH AND MONITORING for the year ended 31 March 2011 607 454 1 061 529 532 49.9% 1 365 320 -
Programme 2: Housing Policy, Research and Monitoring Economic classification
Current payments
Goods and services
Transfers and subsidies to:
Households
Gifts and donations
Heritage assets
2010/11
2009/10
Programme 2: Housing Policy, Research And Monitoring Economic classification Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 (3 815) 43 871 32 636 11 235 35 35 74.4% Variance R000 310 2 67 175 Actual Expenditure R000 35 47 686 Final Appropriation R000 Final Appropriation R000
Expenditure as % of final appropriation %
Actual Expenditure R000 2 44 971
Biological assets
DETAIL PER PROGRAMME 2 HOUSING POLICY, RESEARCH AND MONITORING for the year ended 31 March 2011
Total
153
154
2010/11 Expenditure as % of Final Appropriation Final Appropriation R000 29 094 14.1% 78.9% 15 11 572 191 590 (2 000) 14 380 377 191 27 12 567 79 101 4 872 563 1 813 298 12.9% 70.4% 100.0% 4.6% 87.4% 21.0% 555 6 432 531 17 776 30 460 13 366 829 2009/10 Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 (1 911) (89) (3 825) 16 444 116 7 055 5 563 1 492 227 32 195 5 009 4 638 371 92.6% Variance R000 2 002 (600) (191) 191 (501) Actual Expenditure R000 3 007 227 9 566 205 20 460 590 16 881 377 Final Appropriation R000 Actual Expenditure R000 28 430 74 5 283 79 11 432 24 24 10 895 134 DETAIL PER PROGRAMME 3 HOUSING PLANNING AND DELIVERY SUPPORT for the year ended 31 March 2011
Programme 3: Housing Planning and Delivery Support Detail per sub-programme
3.1 Management
Current payment
3.2 Programme Implementation Support
Current payment
3.3 Rental Housing and Peoples Housing Process
Current payment
3.4 Stakeholder Mobilisation
Current payment
2010/11
2009/10
Programme 3: Housing Planning And Delivery Support Detail per sub-programme Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 (3 973) (27) (2 050) (150) (4 000) (18 025) 225 40 394 78 723 207 196 9 751 98 28 7 919 52 38 211 47 042 158 375 5 135 2 976 2 159 70 1 832 173 2 183 31 681 48 821 650 185 465 9 664 9 646 18 99.8% 28.5% 58.0% 28.6% 81.2% 23.1% 94.6% 59.8% 76.4% 18 167 17 632 535 97.1% Variance R000 (5 710) 5 664 520 (1 419) 45 (301) 300 (24 960) 24 960 26 561 7 034 437 58 251 342 7 544 264 169 506 Actual Expenditure R000 23 877 4 000 130 10 527 80 12 102 75 69 354 53 763 225 221 Final Appropriation R000 Final Appropriation R000
Expenditure as % of final appropriation % Actual Expenditure R000 24 434 6 988 81 3 665 231 6 643 172 98 589
3.5 Capacity Development
Current payment
3.6 Priority Projects
Current payment
3.7 Human Settlement Planning
Current payment
3.8 Sanitation Services
DETAIL PER PROGRAMME 3 HOUSING PLANNING AND DELIVERY SUPPORT for the year ended 31 March 2011
Current payment
Total
155
156
Appropriation per economic classification 2010/11 Expenditure as % of Final Appropriation Final Appropriation R000 34 440 79.4% 18.3% 124 525 40 2009/10 Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 (10 447) (7 312) 164 30 134 54 893 43 602 11 291 61 156 57 326 3 830 93.7% Variance R000 (7 230) (24 736) 164 Actual Expenditure R000 78 833 86 941 Final Appropriation R000 Actual Expenditure R000 28 926 61 796 40 9 855 4 000 5 855 9 837 18 99.8% 7 064 7 012 DETAIL PER PROGRAMME 3 HOUSING PLANNING AND DELIVERY SUPPORT for the year ended 31 March 2011 53 060 2 362 24 880 945 (266) 77 940 3 041 46 945 515 30 995 2 526 60.2% 16.9% 3 041 795 -
Programme 3: Housing Planning and Delivery Support Detail per Economic classification
Current payments
Goods and services
Households
Gifts and donations
Payments for capital assets
Heritage assets
Programme 3: Housing Planning And Delivery Support Detail per Economic classification Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 (18 025) 207 196 158 375 122 120 25 25 2 48 821 98.4% 76.4% Variance R000 122 Actual Expenditure R000 25 225 221 Final Appropriation R000 Final Appropriation R000 376 20 169 506
= Specialised military assets
Actual Expenditure R000 20 98 589
Biological assets
DETAIL PER PROGRAMME 3 HOUSING PLANNING AND DELIVERY SUPPORT for the year ended 31 March 2011
Total
157
158
2010/11 2009/10 Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 (2 400) (9 800) (4 200) 7 556 1 025 15 041 763 559 429 6 438 28 15 041 763 1 005 871 33 981 33 238 743 134 130 1 118 997 10 10 97.8% 86.7% 76.7% 85.2% 2.7% 100.0% 903 607 296 67.2% Variance R000 369 (1 620) 1 005 120 126 2 503 57 34 059 150 085 726 14 352 562 2 934 10 45 401 439 11 630 1 025 15 041 763 Final Appropriation R000 Actual Expenditure R000 Expenditure as % of Final Appropriation Final Appropriation R000 Actual Expenditure R000 2 368 21 29 056 150 005 273 9 622 64 12 442 276 12 442 276 DETAIL PER PROGRAMME 4 HOUSING DEVELOPMENT FINANCE for the year ended 31 March 2011
Programme 4: Housing Development Finance Detail per sub-programme
4.1 Management
Current payment
4.2 Financial and Funds Management
Current payment
4.3 Housing Equity
Current payment
4.4 Human Settlement Development Grant
Current payment
2010/11
2009/10
Programme 4: Housing Development Finance Detail per sub-program Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 25 200 133 800 15 674 395 100 000 61 614 133 800 15 624 981 38 386 49 414 41 600 353 793 346 193 7 600 97.9% 61.6% 100.0% 99.7% Variance R000 389 075 312 193 100 000 133 800 15 649 195 Final Appropriation R000 Actual Expenditure R000
Expenditure as % of final Final appropria- Appropriation tion % R000
Actual Expenditure R000 352 613 -
4.5 Contribution
Current payment
4.6 Rural Households Infrastructure Development
Current payment
4.7 Housing Disater Relief Grant
Current payment
DETAIL PER PROGRAMME 4 HOUSING DEVELOPMENT FINANCE for the year ended 31 March 2011
Total
13 033 695 12 986 298
159
160
Appropriation per economic classification 2010/11 2009/10 Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 (7 659) (8 707) (34) 56 21 35 15 452 13 723 1 729 26 927 26 534 393 98.5% 88.8% 37.5% Variance R00 (410) (760) 40 Final Appropriation R000 Actual Expenditure R000 34 996 24 919 50 26 554 24 313 25 Expenditure as % of Final Appropriation Final Appropriation R000 Actual Expenditure R000 23 263 17 739 25 15 175 563 312 193 1 005 1 005 41 600 353 793 346 193 871 15 175 563 15 175 563 7 600 134 100.0% 97.9% 86.7% 12 592 276 389 075 85 12 592 276 352 613 5 DETAIL PER PROGRAMME 4 HOUSING DEVELOPMENT FINANCE for the year ended 31 March 2011 100 000 1 334 41 100 000 1 375 61 614 338 38 386 1 037 61.6% 24.6% 1 308 319 -
Programme 4: Housing Development Finance Detail per economic classification
Current payments
Goods and services
Households
Gifts and donations
Payments for capital assets
Heritage assets
Programme 4: Housing Development Finance Detail per economic classification Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 219 5 15 674 395 15 624 981 5 49 414 119 100 25 200 54.3% 100.0% 99.7% Variance R00 79 5 Final Appropriation R000 Actual Expenditure R000 140 15 649 195 36 23 13 033 695
Expenditure as % of final Final appropria- Appropriation tion % R000
Actual Expenditure R000 36 22
Biological assets
DETAIL PER PROGRAMME 4 HOUSING DEVELOPMENT FINANCE for the year ended 31 March 2011
Total
12 986 298
161
162
2010/11 2009/10 Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 (990) (10) 40 17 23 42.5% 3 558 1 814 1 744 51.0% Variance R00 450 3 418 109 Actual Expenditure R000 4 098 50 Final Appropriation R000 Expenditure as % of Final Appropriation Final Appropriation R000 Actual Expenditure R000 2 693 55 740 1 017 147 (156) 1 008 1 1 491 (147) (11 845) 43 748 27 577 16 171 1 517 63.0% 48.7% 70 691 1 107 58 467 338 15 210 160 50 (500) 14 710 210 6 993 51 7 717 159 47.5% 24.3% 15 061 363 260 7 586 74 DETAIL PER PROGRAMME 5 STRATEGIC RELATIONS AND GOVERNANCE for the year ended 31 March 2011 41 253 (400) (7 689) 33 164 20 787 12 377 62.7% 46 109 37 956
Programme 5: Strategic Relations and Governance Detail per sub-programme
5.1 Management
Current payment
5.2 Management Information Services
Current payment
5.3 Inter-Governmental and International Relations
Current payment
5.4 Communication
Current payment
2010/11
2009/10
Programme 5: Strategic Relations And Governance Detail per sub-programme Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 (311) 661 244 417 36.9% Variance R00 400 166 635 Actual Expenditure R000 572 Final Appropriation R000 Final Appropriation R000
Actual Expenditure R000 166 193 -
5.5 Housing Institutions 23 163 257 (68) 189 49 (1) (5 931) 17 231 10 141 7 090 140 58.9% 25.9% 14 179 349 8 910 57 -
Current payment
5.6 Strategic Management 8 275 197 14 449 22 724 197 12 692 41 10 032 156 55.9% 20.8% 5 584 826 3 842 38 -
Current payment
DETAIL PER PROGRAMME 5 STRATEGIC RELATIONS AND GOVERNANCE for the year ended 31 March 2011
5.7 Transformation 6 658 10 (40) 40 6 618 50 5 784 19 834 31 87.4% 38.0% 6 005 797 5 545 44
Current payment
163
164
2010/11 2009/10 Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 Variance R00 Actual Expenditure R000 Final Appropriation R000 Expenditure as % of final appropriation % Final Appropriation R000 Actual Expenditure R000 1 000 157 660 145 109 87 384 (12 551) 57 725 1 000 684 316 68.4% 60.2% 1 000 166 659 745 126 654 DETAIL PER PROGRAMME 5 STRATEGIC RELATIONS AND GOVERNANCE for the year ended 31 March 2011
Programme 5: Strategic Relations And Governance Detail per sub-programme
5.8 Contributions
Current payment
Total
Programme 5: Strategic Relations and Governance Detail per economic classification Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 (4 470) 49 941 91 651 160 35 125 46 470 45 181 39 282 10 659 (7 536) 78.7% 50.7% 21.9% Variance R00 (484) (115) (40) Actual Expenditure R000 54 895 99 302 200 38 821 122 158 36 Final Appropriation R000 Final Appropriation R000
Expenditure as % of Final Appropriation
Actual Expenditure R000 32 268 92 668 35
Current payments
Goods and services
Transfers and subsidies 1 000 1 1 000 1 684 316 1 68.4% 1 000 529 745 166 -
Households
DETAIL PER PROGRAMME 5 STRATEGIC RELATIONS AND GOVERNANCE for the year ended 31 March 2011
Gifts and donations
Payments for capital assets 2 110 572 (463) 2 219 832 1 387 37.5% 3 096 490 -
Heritage assets
165
166
Appropriation per economic classification 2010/11 2009/10 Adjusted Appropriation R000 Shifting of Funds R000 Virement R000 (82) 56 57 725 (12 551) 145 109 87 384 1 1 136 80 58.8% 100.0% 60.2% Variance R00 65 1 Actual Expenditure R000 153 157 660 986 33 166 659 Final Appropriation R000 Expenditure as % of final appropriation % Final Appropriation R000 Actual Expenditure R000 254 28 126 654 DETAIL PER PROGRAMME 5 STRATEGIC RELATIONS AND GOVERNANCE for the year ended 31 March 2011
Program 5: Strategic Relations And Governance Detail per economic classification
Biological assets
Total
NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March 2011
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 on 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 R000 221 188 43 871 207 196 15 674 395 145 109 16 291 759 Actual Expenditure R000 188 577 32 636 158 375 15 624 981 87 384 16 091 953 Variance R000 32 611 11 235 48 821 49 414 57 725 199 806 Variance as a % of Final Appropriation R000 14.74% 25.61% 23.56% 0.32% 39.78% 1.23%
Administration Housing Policy, Research and Monitoring Housing Planning and Delivery Support Housing Development Finance Strategic Relations and Governance Total
Administration Underspending is as a result of funds provided for legal advisory services not utilised (either to State Attorney and/or private practices), delay in securing of an additional building, which resulted in the funds provided for leasing, refurbishment of offices, the moving of staff and the acquiring of furniture not being utilised and the non-availability of additional office space resulted in the non-filling of vacancies and costs associated with posts were also not incurred. Housing Policy, Research and Monitoring Savings can be attributed to the cost-cutting measures reducing travel and subsistence and other administration costs. Underspending in the programme can also be attributed to personnel and personnel-related costs owing to vacancies experienced throughout the year as a result of staff turnover. Housing Planning and Delivery Support Underspending in the Programme is as a result of delays in the implementation of the Accelerated Community Infrastructure Programme (ACIP). The implementation in certain municipalities was delayed. Due to compliance issues and procurement processes projects were delayed. Another contributing factor is that the programme expenditure was also affected by cost saving measures introduced which resulted in travel and subsistence expenditure and other administration costs as well as costs associated to the non-filling of vacancies throughout the branch. Housing Development Finance Underspending can be attributed to delays in the implementation of projects on the Rural Household Infrastructure Grant. The procurement processes delayed the finalisation of appointing service providers. By the
167
end of the financial year some of the work was completed, but due to verification processes to be followed, the implementing agents were not able to provide the Department with invoices before the end of the financial year. Another contributing factor is the late approval by National Treasury of R7.6 million virement for Servcon which the Department could not transfer to Servcon. The non-availability of additional office space resulted in the non-filling of vacancies and costs associated with posts could also not be incurred. Strategic Relations and Governance Underspending can mainly be attributed to delays in appointing service providers to maintain and render the necessary support to provinces on the HSS. SITA terminated the agreement with the Department and indicated that they are not willing to renew the contract. The Department had to advertise a bid to appoint a panel of service providers who will render the necessary support to provinces on the HSS. The bid did not yield good results and subsequently the Department approached SITA as an interim arrangement to assist the Department. Another contributing factor is the cost-savings measures that resulted in a reduction in foreign visits and the curtailment of media campaigns. Another contributing factor to the underspending was the delay in finalising the turnaround strategy development for the Department. The delay was caused by the complexity of the human settlement environment and the alignment of the plan to ensure proper service delivery.
4.2 Per economic classification Final Appropriation R000 Actual Expenditure R000 Variance R000 Variance as a % of Final Appropriation R000 9.85% 27.66% 76.96% -
Current payments Compensation of employees Goods and services Interest and rent on land Unauthorised expenditure approved Transfers and subsidies Provinces and municipalities Departmental agencies and accounts Public corporations and private enterprises Foreign governments and international organisations Non-profit institutions Households Gifts and donations Payments for capital assets Buildings and other fixed structures Machinery and equipment Heritage asset Specialised military assets Biological assets Land and subsoil assets Software and other intangible assets Payments for financial assets 177 940 21 103 2 705 209 16 291 759 108 559 10 383 370 199 16 091 953 69 381 10 720 2 335 10 199 806 38.99% 50.80% 0.00% 0.00% 0.00% 0.00% 86.32% 4.78% 1.23% 15 175 563 353 793 1 000 - 11 082 15 175 563 346 193 684 - 10 917 7 600 316 165 0.00% 2.15% 31.60% 0.00% 1.49% 240 095 307 518 751 216 455 222 457 173 23 640 85 061 578 -
168
Total
Current expenditure Underspending is the result of funds provided for legal advisory services not utilised (either to State Attorney and/or private practices), delay in securing an additional building, which resulted in the funds provided for leasing, refurbishment of offices, associated with posts not incurred. Another contributing factor is delays in appointing service providers to maintain and render the necessary support to provinces on the HSS. SITA terminated the agreement with the Department and indicated that they are not willing to renew the contract. The Department had to advertise a bid to appoint a panel of service providers who will render the necessary support to provinces on the HSS. The bid did not yield good results and subsequently the Department approached SITA as an interim arrangement to assist the Department. Another contributing factor is the costsavings measures that resulted in a reduction in foreign visits and curtailment of media campaigns. Another contributing factor to the underspending was the delay in finalising the turnaround strategy development for the Department. Transfers and subsidies Another contributing factor is the late approval by National Treasury of R7.6 million for Servcon which the Department could not transfer to Servcon. On foreign governments & international organisations the underspending is due to the strengthening of the Rand which resulted in the Department paying less for foreign currency than anticipated. Buildings and other fixed structures Underspending is the result of delays in the implementation of the Accelerated Community Infrastructure Programme (ACIP). The implementation in certain municipalities was delayed. Due to compliance issues and procurement processes, projects were delayed. Another contributing factor is delays in the implementation of projects on the Rural Household Infrastructure Grant. The procurement processes delayed the finalisation of appointing service providers. By the end of the financial year some of the work was completed, but due to verification processes to be followed the implementing agents were not able to provide the Department with invoices before the end of the financial year. Machinery and equipment Underspending is as a result of the delay in securing an additional building, which resulted in funds provided for the acquiring of furniture not being utilised. Software & other intangible assets Underspending is the result of a delay in the renewal of Microsoft licences, due to outstanding documents from SITA.
169
STATEMENT OF THE FINANCIAL PERFORMANCE for the year ended 31 March 2011
Note
REVENUE Annual appropriation Departmental revenue Aid assistance TOTAL REVENUE EXPENDITURE Current expenditure Compensation of employees Goods and services Interest and rent on land Aid assistance Total current expenditure Transfers and subsidies Transfers and subsidies Aid assistance Total transfers and subsidies Expenditure for capital assets Tangible capital assets Software and other intangible assets Total expenditure for capital assets Payments for financial assets TOTAL EXPENDITURE SURPLUS/(DEFICIT) FOR THE YEAR Reconciliation of Net Surplus/(Deficit) for the year Voted funds Annual appropriation Departmental revenue and NRF Receipts Aid assistance SURPLUS/(DEFICIT) FOR THE YEAR 15 3 7 9 9 8 3 4 5 6 3 1 2 3
2010/11 R'000
16 291 759 2 826 1 798 16 296 383
2009/10 R'000
13 604 805 749 13 605 554
216 455 222 457 173 1 798 440 883
156 414 254 173 250 410 837
15 533 357 15 533 357
12 952 952 1 463 12 954 415
118 942 370 119 312 199 16 093 751 202 632
5 724 626 6 350 222 13 371 824 233 730
199 806 199 759 2 826 202 632
234 444 234 739 749 (1 463) 233 730
170
STATEMENT OF THE FINANCIAL POSITION for the year ended 31 March 2011
Note
ASSETS Current assets Cash and cash equivalents Pre-payments and advances Receivables Non-current assets Investments TOTAL ASSETS LIABILITIES Current liabilities Voted funds to be surrendered to the Revenue Fund Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund Payables TOTAL LIABILITIES NET ASSETS Note 14 15 16 13 10 11 12
2010/11 R000
200 193 201 710 520 (2 037) 880 604 880 604 1 080 797
2009/10 R000
234 738 229 962 58 4 718 880 604 880 604 1 115 342
200 049 199 805 49 195 200 049 880 748 2010/11 R000
234 526 234 444 31 51 234 526 880 816 2009/10 R000
Represented by: Capitalisation reserve Recoverable revenue TOTAL 880 604 144 880 748 880 604 212 880 816
171
STATEMENT OF CHANGES IN NET ASSETS for the year ended 31 March 2011
Note
Capitalisation reserves Opening balance Closing balance Recoverable revenue Opening balance Transfers: Debts recovered (included in Departmental receipts) Closing balance TOTAL
2010/11 R000
880 604 880 604
2009/10 R000
880 604 880 604
212 (68) -68 144 880 748
281 (69) -69 212 880 816
172
CASH FLOW STATEMENT for the year ended 31 March 2011
Note
CASH FLOWS FROM OPERATING ACTIVITIES Receipts Annual appropriated funds received Departmental revenue received Aid assistance received Net (increase)/decrease in working capital Surrendered to Revenue Fund Current payments Payments for financial assets Transfers and subsidies paid Net cash flow available from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Payments for capital assets Net cash flows from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase/(decrease) in net assets Net cash flows from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 10 9 17 1.1 2 3
2010/11 R000
16 296 382 16 291 758 2 826 1 798 6 437 (237 252) (440 883) (199) (15 533 357) 91 128
2009/10 R000
13 605 554 13 604 805 749 3 316 (8.967) (410 837) (222) (12 954 415) 234 429
(119 312) (119 312)
(6 350) (6 350)
(68) (68) (28 252) 229 962 201 710
(69) (69) 228 010 1 952 229 962
173
ACCOUNTING POLICIES for the year ended 31 March 2011
The Financial Statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. However, where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the Financial Statements and to comply with the statutory requirements of the Public Finance Management Act, Act No 1 of 1999 (as amended by Act No 29 of 1999), and the Treasury Regulations issued in terms of the Act and the Division of Revenue Act, Act No 1 of 2010. 1.1 Basis of preparation The Financial Statements have been prepared on a modified cash basis of accounting, except where stated otherwise. The modified cash basis constitutes the cash basis of accounting supplemented with additional disclosure items. Under the cash basis of accounting transactions and other events are recognised when cash is received or paid. 1.2 Presentation currency All amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the Department. 1.3 Rounding Unless otherwise stated all financial figures have been rounded to the nearest one thousand Rand (R000). 1.4 Comparative figures Prior period comparative information has been presented in the current years financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format of the current years financial statements. 1.5 Comparative figures - Appropriation Statement A comparison between actual amounts and final appropriation per major classification of expenditure is included in the Appropriation Statement. 2.1 Appropriated funds Appropriated funds comprises of departmental allocations as well as direct charges against revenue fund (i.e. statutory appropriation). Appropriated funds are recognised in the financial records on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the financial records on the date the adjustments become effective. Unexpended appropriated funds are surrendered to the National/Provincial Revenue Fund. Any amounts owing to the National/Provincial Revenue Fund at the end of the financial year are recognised as payable in the Statement of Financial Position. Any amount due from the National/Provincial Revenue Fund at the end of the financial year is recognised as a receivable in the Statement of Financial Position. 2.2 Departmental revenue All departmental revenue is recognised in the Statement of Financial Performance when received and is subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise.
1. Presentation of the Financial Statements
2. Revenue
174
Any amount owing to the National/Provincial Revenue Fund is recognised as a payable in the Statement of Financial Position. No accrual is made for amounts receivable from the last receipt date to the end of the reporting period. These amounts are however disclosed in the disclosure note to the annual financial statements. 2.3 Direct Exchequer receipts All direct exchequer receipts are recognised in the Statement of Financial Performance when the cash is received and is subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise. Any amount owing to the National/Provincial Revenue Funds at the end of the financial year is recognised as a payable in the Statement of Financial Position. 2.4 Direct Exchequer payments All direct exchequer payments are recognised in the Statement of Financial Performance when final authorisation for payment is effected on the system (by no later than 31 March of each year). 2.5 Aid assistance Aids assistance is recognised as revenue when received. All in-kind aid assistance is disclosed at fair value on the date of receipt in the annexures to the annual financial statements. The cash payments made during the year relating to aid assistance projects are recognised as expenditure in the Statement of Financial Performance when final authorisation for payments is effected on the system (by no later than 31 March of each year). The value of the assistance expensed prior to the receipt of funds is recognised as a receivable in the Statement of Financial Position. Inappropriately expensed amounts using aid assistance and any unutilised amounts are recognised as payables in the Statement of Financial Position. All CARA funds received must be recorded as revenue when funds are received. The cash payments made during the year relating to CARA earmarked projects are recognised as expenditure in the Statement of Financial Performance when final authorisation for payments effected on the system (by no later then 31 March of each year) Inappropriately expensed amounts using CARA funds are recognised as payables in the Statement of Financial Position. Any unutilised amounts are transferred to retained funds as they are not surrendered to the Revenue Fund.
3. Expenditure
3.1 Compensation of employees 3.1.1 Salaries and wages Salaries and wages are expensed in the Statement of Financial Performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). Other employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements at its face value and are not recognised in the Statement of Financial Performance or position.
175
Employee costs are capitalised to the cost of a capital project when an employee spends more than 50 percent of his/her time on the project. These payments form part of expenditure for capital assets in the Statement of Financial Performance. 3.1.2 Social contributions Employer contributions to post employment benefit plans in respect of current employees are expensed in the Statement of Financial Performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). No provision is made for retirement benefits in the financial statements of the department. Any potential liabilities are disclosed in the financial statements of the National Revenue Fund and not in the financial statements of the employer department. Employer contributions made by the Department for certain of its ex-employees (such as medical benefits) are classified as transfers to households in the Statement of Financial Performance. 3.2 Goods and services Payments made during the year for goods and/or services are recognised as an expense in the Statement of Financial Performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). The expense is classified as capital if the goods and/or services were acquired for a capital project or if the total purchase price exceeds the capitalisation threshold (currently R5 000). All other expenditures are classified as current. Rental paid for the use of buildings or other fixed structures is classified as goods and services and not as rent on land. 3.3 Interest and rent on land Interest and rental payments are recognised as an expense in the Statement of Financial Performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). This item excludes rental for the use of buildings or other fixed structures. If it is not possible to distinguish between payment for the use of land and the fixed structures on it, the whole amount should be recorded under goods and services. 3.4 Payments for financial assets Debts are written off when identified as irrecoverable. Debts written off are limited to the amount of savings and/or underspending of appropriated funds. The write-off occurs at year-end or when funds are available. No provision is made for irrecoverable amounts but an estimate is included in the disclosure notes to the financial statements amounts. All other losses are recognised when authorisation has been granted for the recognition thereof. 3.5 Transfers and subsidies Transfers and subsidies are recognised as an expense when the final authorisation for payment is effected on the system (by no later than 31 March of each year). 3.6 Unauthorised expenditure When confirmed unauthorised expenditure is recognised as an asset in the Statement of Financial Position until such time as the expenditure is either approved by the relevant authority, recovered from the responsible person or written off as irrecoverable in the Statement of Financial Performance.
176
Unauthorised expenditure approved with funding is derecognised from the Statement of Financial Position when the unauthorised expenditure is approved and the related funds are received. Where the amount is approved without funding it is recognised as expenditure in the Statement of Financial Performance on the date of approval. 3.7 Fruitless and wasteful expenditure Fruitless and wasteful expenditure is recognised as expenditure in the Statement of Financial Performance according to the nature of the payment and not as a separate line item on the face of the statement. If the expenditure is recoverable it is treated as an asset until it is recovered from the responsible person or written off as irrecoverable in the Statement of Financial Performance. 3.8 Irregular expenditure Irregular expenditure is recognised as expenditure in the Statement of Financial Performance. If the expenditure is not condoned by the relevant authority it is treated as an asset until it is recovered or written off as irrecoverable.
4. Assets
4.1 Cash and cash equivalents Cash and cash equivalents are carried in the Statement of Financial Position at cost. Bank overdrafts are shown separately on the face of the Statement of Financial Position. For the purposes of the Cash Flow Statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term, highly liquid investments and bank overdrafts. 4.2 Other financial assets Other financial assets are carried in the Statement of Financial Position at cost. 4.3 Prepayments and advances Amounts prepaid or advanced are recognised in the Statement of Financial Position when the payments are made and are derecognised as and when the goods/services are received or the funds are utilised. Prepayments and advances outstanding at the end of the year are carried in the Statement of Financial Position at cost. 4.4 Receivables Receivables included in the Statement of Financial Position arise from cash payments made that are recoverable from another party (including departmental employees) and are derecognised upon recovery or write-off. Receivables outstanding at year-end are carried in the Statement of Financial Position at cost plus any accrued interest. Amounts that are potentials irrecoverable are included in the disclosure notes. 4.5 Investments Capitalised investments are shown at cost in the Statement of Financial Position. Investments are tested for an impairment loss whenever events or changes in circumstances indicate that the investment may be impaired. Any impairment loss is included in the disclosure notes.
177
4.6 Loans Loans are recognised in the Statement of Financial Position when the cash is paid to the beneficiary. Loans that are outstanding at year-end are carried in the Statement of Financial Position at cost plus accrued interest. Amounts that are potentially irrecoverable are included in the disclosure notes. 4.7 Inventory Inventories that qualify for recognition must be initially reflected at cost. Where inventories are acquired at no cost, or for nominal consideration, their cost shall be their fair value at the date of acquisition. All inventory items at year-end are reflected using the weighted average cost or FIFO cost formula. 4.8 Capital assets 4.8.1 Movable assets Initial recognition A capital asset is recorded in the asset register 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, the movable capital asset is stated at fair value. Where fair value cannot be determined, the capital asset is included in the asset register at R1. All assets acquired prior to 1 April 2002 are included in the register as at R1. Subsequent recognition Subsequent expenditure of a capital nature is recorded in the Statement of Financial Performance as expenditure for capital assets and is capitalised in the asset register of the department on completion of the project. Repairs and maintenance is expensed as current goods and services in the Statement of Financial Performance. 4.8.2 Immovable assets Initial recognition A 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, the immovable capital asset is stated at R1 unless the fair value for the asset has been reliably estimated. Subsequent recognition Work-in-progress of a capital nature is recorded in the Statement of Financial Performance as expenditure for capital assets. On completion, the total cost of the project is included in the asset register of the department that is accountable for the asset. Repairs and maintenance is expensed as current goods and services in the Statement of Financial Performance.
5. Liabilities
5.1 Payables Recognised payables mainly comprise of amounts owing to other governmental entities. These payables are carried at cost in the Statement of Financial Position.
178
5.2 Contingent liabilities Contingent liabilities are included in the disclosure notes to the Financial Statements when it is possible that economic benefits will flow from the Department, or when an outflow of economic benefits or service potential is probable but cannot be measured reliably. 5.3 Contingent assets Contingent assets are included in the disclosure notes to the Financial Statements when it is probable that an inflow of economic benefits will flow to the entity. 5.4 Commitments Commitments are not recognised in the Statement of Financial Position as a liability or as expenditure in the Statement of Financial Performance but are included in the disclosure notes. 5.5 Accruals Accruals are not recognised in the Statement of Financial Position as a liability or as expenditure in the Statement of Financial Performance but are included in the disclosure notes. 5.6 Employee benefits Short-term employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the Financial Statements. These amounts are not recognised in the Statement of Financial Performance or the Statement of Financial Position. 5.7 Lease commitments Finance lease Finance leases are not recognised as assets and liabilities in the Statement of Financial Position. Finance lease payments are recognised as an expense in the Statement of Financial Performance and are apportioned between the capital and interest portions. The finance lease liability is disclosed in the disclosure notes to the Financial Statements. Operating lease Operating lease payments are recognised as an expense in the Statement of Financial Performance. The operating lease commitments are disclosed in the discloser notes to the Financial Statement. 5.8 Impairment and other provisions The Department tests for impairment where there is an indication that a receivable, loan or investment may be impaired. An assessment of whether there is an indication of possible impairment is done at each reporting date. An estimate is made for doubtful loans and receivables based on a review of all outstanding amounts at year-end. Impairments on investments are calculated as being the difference between the carrying amount and the present value of the expected future cash flows/service potential flowing from the instrument. Provisions are disclosed when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the obligation can be made.
6. Receivables for Departmental revenue
Receivables for Departmental revenue are disclosed in the disclosure notes to the annual Financial Statements.
179
7.1 Capitalisation reserve The capitalisation reserve comprises of financial assets and/or liabilities originating in a prior reporting period but which are recognised in the Statement of Financial Position for the first time in the current reporting period. Amounts are recognised in the capitalisation reserves when identified in the current period and are transferred to the National/Provincial Revenue Fund when the underlining asset is disposed and the related funds are received. 7.2 Recoverable revenue Amounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the Statement of Financial Performance when written off.
7. Net assets
8. Related party transactions
Specific information with regards to related party transactions is included in the disclosure notes.
Compensation paid to key management personnel including their family members where relevant, is included in the disclosure notes.
9. Key management personnel
10. Public-private partnerships
A description of the PPP arrangement, the contract fees and current and capital expenditure relating to the PPP arrangement is included in the disclosure notes.
180
NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2011
1.1 Annual Appropriation Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted Funds) and provincial departments:
2010/11 Final Appropriation R000 Administration Housing Policy, Research and Monitoring Housing Planning and Delivery Support Housing Development Finance Strategic Relations and Governance 221 188 43 871 207 196 15 674 395 145 109 Actual Funds received R000 211 997 47 686 225 221 15 649 194 157 660 Funds not requested/ not received R000 9 191 (3 815) (18 025) 25 201 (12 551) 2009/10 Appropriation received R000 167 770 67 175 169 506 13 033 695 166 659
1. Annual Appropriation
1 13 604 805 16 291 759 16 291 758 Total The drawings for December 2010 were approved on 3 December 2010 and the funds were already received by the Department.
2. Departmental revenue
Note Tax revenue Sales of goods and services other than capital assets Interest, dividends and rent on land Transactions in financial assets and liabilities Departmental revenue collected 2.1 2.2 2.3 2010/11 R000 123 23 2 680 2 826 2009/10 R000 91 46 612 749
2.1 Sales of goods and services other than capital assets

Note Sales of goods and services produced by the Department Sales by market establishment Other sales Sales of scrap, waste and other used current goods Total 2010/11 R000 121 35 86 2 123 2009/10 R000 90 31 59 1 91
2.2 Interest, dividends and rent on land

Note Interest Total 2010/11 R000 23 23 2009/10 R000 46 46
181
2.3 Transactions in financial assets and liabilities

Note Receivables Other receipts including Recoverable Revenue Total 2010/11 R000 128 2 552 2 680 2009/10 R000 132 480 612
3. Aid assistance
3.1 Aid assistance received in cash from RDP

Note Foreign Opening Balance Revenue Expenditure Current Transfers Closing Balance 1 798 (1 798) (1 798) 1 463 (1 463) 1 463 2010/11 R000 2009/10 R000
3.2 Total assistance

2010/11 R000 Opening Balance Revenue Expenditure Current Transfers Closing Balance 1 798 (1 798) (1 798) 2009/10 R000 1 463 (1 463) (1 463) -
4. Compensation of employee
4.1 Salaries and wages
Note Basic salary Performance award Service Based Compensative/circumstantial Other non-pensionable allowances Total 2010/11 R000 147 186 3 538 370 4 416 36 688 192 198 2009/10 R000 104 120 3 425 906 3 558 27 703 139 712
182
4.2 Social contributions

Note Employer contributions Pension Medical Bargaining council Total Total compensation of employees Average number of employees 17 320 6 904 33 24 257 216 455 696 12 188 4 500 14 16 702 156 414 552 2010/11 R000 2009/10 R000
5. Goods and services

Note Administrative fees Advertising Assets less then R5 000 Bursaries (employees) Catering Communication Computer services Consultants, contractors and agency/outsourced services Entertainment Audit cost external Inventory Operating leases Owned and leasehold property expenditure Travel and subsistence Venues and facilities Training and staff development Other operating expenditure Total 5.8 5.6 5.7 5.4 5.5 5.2 5.3 5.1 2010/11 R000 156 5 295 1 753 1 144 1 359 7 323 28 177 82 161 121 6 542 5 215 18 658 6 189 41 590 10 811 3 025 2 938 222 457 2009/10 R000 77 24 346 1 466 789 3 844 6 762 57 763 79 367 225 5 184 8 155 1 431 4 790 43 858 10 374 2 301 3 441 254 173
183
5.1 Assets less than R5 000

Note 5 Tangible assets Machinery and equipment Intangible assets Total 2010/11 R000 1 744 1 744 9 1 753 2009/10 R000 1 466 1 466 1 466
5.2 Computer services

Note 5 SITA computer services External computer service providers Total 2010/11 R000 24 140 4 037 28 177 2009/10 R000 53 623 4 140 57 763
5.3 Consultants, contractors and agency/outsourced services

Note 5 Business and advisory services Legal costs Contractors Agency and support/outsourced services Total 2010/11 R000 75 042 988 2 353 3 778 82 161 2009/10 R000 46 971 2 081 1 715 28 600 79 367
5.4 Audit cost external

Note 5 Regularity audits Performance audits Total 2010/11 R000 6 541 1 6 542 2009/10 R000 5 184 5 184
5.5 Inventory
Note 5 Learning and teaching support material Food and food supplies Fuel, oil and gas Other consumable materials Maintenance material Stationery and printing Total 2010/11 R000 14 392 621 35 4 153 5 215 2009/10 R000 4 9 312 758 20 7 052 8 155
184
5.6 Property payments

Note 5 Municipal services Other Total 2010/11 R000 5 240 949 6 189 2009/10 R000 4 076 714 4 790
5.7 Travel and subsistence

Note 5 Local Foreign Total 2010/11 R000 40 158 1 432 41 590 2009/10 R000 42 047 1 811 43 858
5.8 Other operating expenditure

Note 5 Professional bodies membership and subscription fees Resettlement costs Other Total 2010/11 R000 136 986 1 816 2 938 2009/10 R000 164 1 294 1 983 3 441
6. Interest and rent on land

Note Interest paid Total 2010/11 R000 173 173 2009/10 R000 250 250
7. Payments for financial assets

Note 7.1 Debts written off Total 2010/11 R000 199 199 2009/10 R000 222 222
7.1 Debts written off

Note 7 Nature of debts written off No-shows Bad debts Damage vehicles Admin traffic fines Total 5 6 186 2 199 11 35 176 222 2010/11 R000 2009/10 R000
185
8. Transfers and subsidies

Note Provinces and municipalities Departmental agencies and accounts Foreign governments and international organisations Public corporations and private enterprises Households Gifts, donations and sponsorships made Total Unspent funds transferred to the above beneficiaries 32 Annex 1A Annex 1C Annex 1B Annex 1D Annex 1E 2010/11 R000 15 175 563 346 192 684 10 888 30 15 533 357 2009/10 R000 12 592 276 352 613 745 108 6 986 224 12 952 952
9. Expenditure for capital assets

Note Tangible assets Buildings and other fixed structures Machinery and equipment Software and other intangible assets Computer software Total 30 31 29 2010/11 R000 118 942 108 558 10 384 370 370 119 312 2009/10 R000 5 724 5 724 626 626 6 350
9.1 Analysis of funds utilised to acquire capital assets 2010/11

Voted funds R000 Tangible assets Buildings and other fixed structures Machinery and equipment Software and other intangible assets Computer software Total 118 942 108 558 10 384 370 370 119 312 Aid assistance R000 Total R000 118 942 108 558 10 384 370 370 119 312
186
9.2 Analysis of funds utilised to acquire capital assets 2009/10

Voted funds R000 Tangible assets Machinery and equipment Software and other intangible assets Computer software Total 5 724 5 724 626 626 6 350 Aid assistance R000 Total R000 5 724 5 724 626 626 6 350
10. Cash and cash equivalents

Note Consolidated Paymaster General Account Disbursements Cash on hand Total 2010/11 R000 238 514 (36 849) 45 201 710 2009/10 R000 240 442 (10 505) 25 229 962
11. Pre-payments and advances

Note Travel and subsistence Advances paid to other entities Total 520 520 2010/11 R000 2009/10 R000 58 58
12. Receivables
2010/11 Note Claims recoverable Recoverable expenditure Staff debt Other debtors Total 12.1 Annex 3 12.2 12.3 12.4 Less than one year R000 6 (4 113) 153 237 (3 717) One to three years R000 1 351 38 9 227 1 625 Older than three years R000 2 53 55 2009/10 Total R000 1 359 (4 022) 161 465 (2 037) Total R000 3 753 102 290 573 4 718
12.1 Claims recoverable

Note 12 National Departments Total 2010/11 R000 1 359 1 359 2009/10 R000 3 753 3 753
187
12.2 Recoverable expenditure (disallowance accounts)

Note 12 Disallowance Miscellaneous (SIU Debtors) Damages Total 2010/11 R000 (4 416) 394 (4 022) 2009/10 R000 (265) 367 102
12.3 Staff debt

Note 12 Telephone & cellphone Study Vehicle Tax No show Housing guarantee Resettlement Salaries Total 2010/11 R000 9 55 2 1 9 85 161 2009/10 R000 13 82 55 8 11 5 116 290
12.4 Other debtors

Note 12 (Group major categories, but list material items) Suppliers VAT vendors (In process for recovery or final demand by Legal Services) Total 2010/11 R000 227 238 465 2009/10 R000 573 573
13. Investments
Note Non-current Shares and other equity NHFC Servcon Total non-current 880 000 604 880 604 2010/11 R000 Analysis of non-current investments Opening balance Closing balance 880 604 880 604 880 604 880 604 880 000 604 880 604 2010/11 R000 2010/11 R000 2009/10 R000
188
14. Voted funds to be surrendered to the Revenue Fund

Note Opening balance Transfer from Statement of Financial Performance Voted funds not requested/not received Paid during the year Closing balance 1.1 2010/11 R000 234 444 199 806 (1) (234 444) 199 805 2009/10 R000 8 215 234 444 (8 215) 234 444
15. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund
Note Opening balance Transfer from Statement of Financial Performance Paid during the year Closing balance An amount of R2 000 000 was received from GCIS on behalf of Sanitation and paid over. 2010/11 R000 31 2 826 (2 808) 49 2009/10 R000 34 749 (752) 31
16. Payables current

Note Clearing accounts Total 16.1 2010/11 Total 195 195 2009/10 R000 51 51
16.1 Clearing accounts

Note 16 Salary Income Tax: CL Pension Fund Medical Aid Total 2010/11 R000 189 5 1 195 2009/10 R000 42 8 1 51
189
17. Net cash flow available from operating activities

Note Net surplus/(deficit) as per Statement of Financial Performance Add back non-cash/cash movements not deemed operating activities (Increase)/decrease in receivables current (Increase)/decrease in prepayments and advances Increase/(decrease) in payables current Expenditure on capital assets Surrenders to Revenue Fund Voted funds not requested/not received Net cash flow generated by operating activities 2010/11 R000 202 632 (111 504) 6 755 (462) 144 119 312 (237 252) (1) 91 128 2009/10 R000 233 730 699 3 300 26 (10) 6 350 (8 967) 234 429
18. Reconciliation of cash and cash equivalents for cash flow purposes
Note Consolidated Paymaster General account Disbursements Cash on hand Total 2010/11 R000 238 514 (36 849) 45 201 710 2009/10 R000 240 442 (10 505) 25 229 962
190
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2011
These amounts are not recognised in the Annual Financial Statements and are disclosed to enhance the usefulness of the Annual Financial Statements.
19. Contingent liabilities and contingent assets

19.1 Contingent liabilities
Note Liable to Motor vehicle guarantees Housing loan guarantees Claims against the department Other departments (inter-departmental unconfirmed balances) Total Nature Employees Employees Annex 2A Annex 2A Annex 2B Annex 4 102 4 920 78 5 100 36 398 72 438 22 72 894 2010/11 R000 2009/10 R000
20. Commitments
Note Current expenditure Approved and contracted Approved but not yet contracted Capital expenditure Approved and contracted Approved but not yet contracted Total commitments Indicate whether a commitment is for longer than a year 1 year R67 295 2-3 years R125 3 years R1 731 3 years and above R336 2010/11 R000 80 909 69 386 11 523 2 527 2 505 22 83 436 2009/10 R000 68 039 67 926 113 6 019 6 019 74 058
21. Accruals
2010/11 R000 Listed by economic classification 30 Days Goods and services Interest and rent on land Capital assets Other Total 856 8 864 7 203 30+ Days 7 203 Total 8 059 8 8 067 Total 13 635 374 14 009 2009/10 R000
191
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2011 Note Listed by programme level Administration Housing, Policy, Research and Monitoring Housing, Planning and Delivery Support Housing Development Finance Strategic Relations and Governance Total Confirmed balances with other departments Confirmed balances with other government entities Total Annex 5 Annex 5 4 914 174 760 1 095 1 124 8 067 1 147 4 558 5 705 5 657 61 2 991 178 5 122 14 009 1 1 2010/11 R000 2009/10 R000
22. Employee benefits

Note Leave entitlement Service bonus (Thirteenth cheque) Performance awards Capped leave commitments Total 2009/10 Staff Receivables R775 2010/11 Staff Receivables R1 121 2010/11 R000 4 815 5 386 4 335 6 900 21 436 2009/10 R000 4 059 4 115 6 951 15 125
23. Lease commitments
23.1 Operating leases expenditure

Specialised military equipment R000 2010/11 Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years Total lease commitments 2009/10 Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years Total lease commitments 18 658 82 255 163 206 264 119 18 658 82 255 163 206 264 119 22 070 107 404 105 380 234 854 22 070 107 404 105 380 234 854 Buildings and other fixed structures R000 Machinery and equipment R000
Land R000
Total R000
192
23.2 Finance leases expenditure**

Specialised military equipment R000 2010/11 Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years Total lease commitments LESS: Finance costs Total present value of lease liabilities Buildings and other fixed structures R000 857 78 935 46 889 857 78 935 46 889 Buildings and other fixed structures R000 Machinery and equipment R000
Land R000
Total R000
Specialised military equipment R000 2009/10 Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years Total lease commitments LESS: Finance costs Total present value of lease liabilities -
Land R000 -
Machinery and equipment R000 1 879 611 2 490 181 2 309
Total R000 1 879 611 2 490 181 2 309
* * This note excludes leases relating to public private partnership as they are separately disclosed to note no 39.
24. Irregular expenditure
24.1 Reconciliation of irregular expenditure

Note Opening balance Add: Irregular expenditure relating to prior year Add: Irregular expenditure relating to current year Irregular expenditure awaiting condonation Analysis of awaiting condonation per age classification Current year Prior years Total 109 109 920 1 739 2 659 2010/11 R000 2 659 526 12 100 15 285 2009/10 R000 1 739 920 2 659
193
24.2 Details of irregular expenditure current year

Incident Acting Allowance Appointments Exco 60 Advertised period Kaleo Consulting Exco 57 Quotations Bay Technologies, Maphalang Exco 50 Stipulations Practice note 8 of 2007/08 Total Disciplinary steps taken/criminal proceedings Requested for condonation 2010/11 R000 109 152 1 819 223 9 797 12 100
25. Fruitless and wasteful expenditure
25.1 Reconciliation of fruitless and wasteful expenditure

Note Opening balance Fruitless and wasteful expenditure relating to current year Fruitless and wasteful expenditure awaiting condonement 2010/11 R000 3 3 2009/10 R000 3 3
26. Related party transactions
List related party relationships South African Housing Fund Servcon Social Housing Foundation National Urban Reconstruction and Housing Agency National Home Builders Registration Council National Housing Finance Corporation Thubelisha Homes Housing Development Agency Social Housing Regulatory Authority
27. Key management personnel

No of Individuals Political office bearers (provide detail below) Officials: Level 15 to 16 Level 14 (incl CFO if at a lower level) Total 2010/11 R000 3 277 8 223 20 110 31 610 2009/10 R000 2 956 10 715 18 535 3 206
194
28. Impairment and other provisions

Note Provisions Staff debtors Total Other provisions Vat vendors (In process for recovery or final demand by Legal Services) Total Total 73 73 173 269 100 100 269 269 2010/11 R000 2009/10 R000
29. Movable Tangible Capital Assets
Movement in movable tangible capital assets per Asset Register for the year ended 31 March 2011 Curr Year Adjustments to prior year balances R000 (1 531) (182) (1 236) (113) (1 531)
Opening balance R000 Machinery and Equipment Transport assets Computer equipment Furniture and office equipment Other machinery and equipment Total Movable tangible capital assets 41 564 1 193 16 781 14 030 9 560 41 564
Additions R000 9 056 489 6 993 886 688 9 056
Disposals R000 833 619 54 160 833
Closing Balance R000 48 256 1 682 22 973 13 626 9 975 48 256
29.1 Additions
Additions to movable tangible capital assets per asset register for the year ended 31 March 2011 Capital work in progress current costs and finance lease payments R000 (1 328) (1 328) (1 328) Received current, not paid (Paid current year, received prior year) R000 -
Cash R000 Machinery and equipment Transport assets Computer equipment Furniture and office equipment Other machinery and equipment Total Additions to movable tangible capital assets 10 384 489 6 993 2 214 688 10 384
Non-cash R000
Total R000 9 056 489 6 993 886 688 9 056
195
29.2 Disposals
Disposal of movable tangible capital assets per asset register for the year ended 31 March 2011 Sold for cash R000 Machinery and equipment Computer equipment Furniture and office equipment Other machinery and equipment Total Disposal of movable tangible capital assets 62 62 62 Transfer out or destroyed or scrapped R000 771 619 54 98 771 Total disposals R000 833 619 54 160 833 Cash received actual R000
29.3 Movement for 2009/10
Movement in movable tangible capital assets per asset register for the year ended 31 March 2011 Opening balance R000 Machinery and Equipment Transport assets Computer equipment Furniture and office equipment Other machinery and equipment Total Movable tangible capital assets 38 697 1 221 15 929 12 790 8 757 38 697 Additions R000 5 724 574 2 425 1 678 1 047 5 724 Disposals R000 2 857 602 1 573 438 244 2 857 Closing balance R000 41 564 1 193 16 781 14 030 9 560 41 564
29.4 Minor assets
Movement in minor assets of the department as at 31 March 2011 Specialised military assets R000 Opening balance Additions Disposals Total Minor assets Number of R1 minor assets Number of minor assets at cost Total Number of minor assets Intangible assets R000 1 069 28 1 097 5 1 026 1 031 Heritage assets R000 Machinery and equipment R000 10 240 1 652 316 11 576 65 7 334 7 399 Biological assets R000 -
Total R000 11 309 1 680 316 12 673 70 8 360 8 430
196
Minor assets of the department as at 31 March 2011 Specialised military assets R000 Minor assets Total Number of R1 minor assets Number of minor assets at cost Total Number of minor assets Intangible assets R000 1 069 1 069 1 017 1 017 Heritage assets R000 Machinery and equipment R000 10 240 10 240 89 6 790 6 879 Biological assets R000 -
Total R000 11 309 11 309 89 7 807 7 896
30. Intangible capital assets
Movement in intangible capital assets per asset register for the year ended 31 March 2011 Current Year Adjustments to prior year balances R000 94 94
Opening balance R000 Computer software Total Intangible capital assets 3 202 3 202
Additions R000 370 370
Disposals R000 -
Closing Balance R000 3 666 3 666
30.1 Additions
Additions to intangible capital assets per asset register for the year ended 31 March 2011 Development work in progress current costs R000 Received current year, not paid (Paid current year, received prior year) R000 -
Cash R000 Computer Software Total Additions to intangible capital assets 370 370
Non-cash R000 -
Total R000 370 370
30.2 Movement for 2009/10
Movement in intangible capital assets per asset register for the year ended 31 March 2011 Opening balance R000 Computer Software Total Intangible capital assets 2 576 2 576 Additions R000 626 626 Disposals R000 Closing balance R000 3 202 3 202
197
31.1 Additions
31. Immovable tangible capital assets
Additions to immovable tangible capital assets per asset register for the year ended 31 March 2011 Capital work in progress current costs and finance lease payments R000 (108 558) (108 558) (108 558) Received current year, not paid (Paid current year, received prior year) R000
Cash R000 Building and other fixed structures Other fixed structures Total Additions to immovable tangible capital assets 108 558 108 558 108 558
Non-cash R000
Total R000 -
32. Transfer of functions
Assets from the Department of Water Affairs (DWA) with the amount of R1 188 603.47 were declined due to the fact that the Department transferring the assets (DWA) to National Department of Human Settlements failed to submit supporting documents. Assets transferred to Defence with the amount of R476 953.61 were not acknowledged pending the signature of the Accounting Officer at Defence, Section 42 paragraph 2. These assets still appearing on the Asset Register of the Department. They were not removed from Asset Register waiting for the DG at Defence to sign.
198
33. Statement of Conditional Grants paid to the provinces

GRANT ALLOCATION TRANSFER SPENT 2009/10
Name of Province/Grant 130 000 174 000 (343 000) 343 000 3 886 831 2 634 109 1 364 750 975 863 447 260 1 188 770 1 868 843 133 800 15 175 563 1 037 691 1 868 843 133 800 15 175 563 133 800 1 868 843 358 000 15 518 563 (100 000) 1 188 770 1 188 770 174 000 447 260 447 260 975 863 975 863 130 000 1 364 750 1 364 750 2 714 109 2 634 109 (80 000) 115 000 3 886 831 3 886 831 1 300 691 1 037 691 (263 000) 39 000 1 637 646 1 637 646 39 000 1 637 646 1 503 816 1 037 685 3 855 064 2 711 234 1 264 584 1 011 033 472 944 1 040 163 1 940 037 133 800 14 970 360
Division of Revenue Act R000 Roll-overs R000 Adjustments R000 Total Available R000 Actual Transfer R000 Funds Withheld R000
Re-allocations by National Treasury or National Department R000 Amount received by department R000 Amount spent by department R000 % of available funds spent by department R000 92% 100% 99% 103% 93% 104% 106% 87% 104% 100%
Division of Revenue Act R000 1 313 378 962 759 3 187 086 2 180 448 996 667 795 447 325 011 1 100 055 1 581 425 150 000 12 592 276
Eastern Cape
1 598 646
Free State
1 300 691
Gauteng
3 771 831
KwaZulu-Natal
2 714 109
Limpopo
1 234 750
Mpumalanga
975 863
Northern Cape
273 260
North West
1 288 770
Western Cape
1 868 843
KwaZulu-Natal Disaster Relief
133 800
Total
15 160 563
13(1)(a) The whole total amount of R15 026 763 000 allocated to the province and an additional 15 million allocated to Gauteng Province for Sweetwaters project from the department budget savings were transferred into the primary bank account of the provincial department.(b)The withholding in terms of Section 16 & 17 of the Division of Revenue Act, R263 million & R80 million were withheld from Free state and KwaZulu-Natal during the year. (c)The withheld funds were re-allocated R39 million to Eastern Cape, R130 million to Limpopo & R174 million to Northern Cape. (d)All funds were transferred into the primary bank account of the provincial department.(e) The grant was not utilised for other administrative purpose except in terms of operational Capital Budget (OPSCAP) programme, which allows the provinces to utilise a certain percentage maximum of 5 percent of the voted allocation (grant) to support the approved national and provincial housing programmes and priorities.
199
200
Transfer Allocation % of Available funds Transferred 100% 100% 186 771 49 500 34 000 353 793 346 192 100% 100% 82% Transfer 2009/10 Adjusted Appropriation R000 Roll-overs R000 34 999 34 999 41 600 41 600 49 500 41 600 186 771 1 6 621 6 621 69 300 69 300 6 621 1 151 772 49 500 277 194 Adjustments R000 Total Available R000 Actual Transfer R000 69 300 Appropriation Act R000 62 650 3 500 262 960 23 503 352 613 ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2011
ANNEXURE 1A Statement of Transfers to Departmental Agencies and Accounts
Departmen/ Agency/ Account
Housing Development Agency
NURCHA
Social Housing Foundation
Thubelisha
National Housing Finance Cooperation
Social Housing Regulatory Authority
Rural Housing Loan Fund
Servcon
Total
ANNEXURE 1B Statement of Transfers/Subsidies to Public Corporations and Private Enterprises Transfer Allocation % of Available funds Transferred Capital R000 Current R000 Expenditure 2009/10
Name of Public Corporation/Private Enterprise
Adjusted Appropriation Act R000 Roll-overs R000 Adjustments R000 Total Available R000 Actual Transfer R000
Appro-priation Act R000
Public Corporations
Transfers 108
AIG
Subsidies 108
TOTAL
ANNEXURE 1C Statement of Transfers to Foreign Government and International Organisations Transfer Allocation Expenditure % of Available funds Transferred Adjustments R000 Total Available R000 500 500 1 000 Actual Transfer R000 326 358 684 2009/10
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2011
Foreign Government/ International Organisation 500 500
Adjusted Appropriation Act R000 Roll-overs R000
Appropriation Act R000 65% 72% 357 388 745
Transfers
UN Habitat
Cities Alliance
Total 1 000
201
ANNEXURE 1D Statement of Transfers to Households Transfer Allocation Adjusted Appropriation Act R000 4 006 1 005 Expenditure % of Available funds Transferred 2009/10 Appropriation Act R000 6 986 6 986
Households Transfers Bursaries Leave gratuity
Rollovers R000 -
Adjustments R000 7 076 257
Total Available R000 11 082 1 262 12 344
Actual Transfer R000 9 636 1 252 10 888
87% 99% -
5 011 7 333 Total
ANNEXURE 1E Statement of gifts, donations and sponsorships made; and remmissions, refunds and payments made as an act of grace Nature of gift, donation or sponsorship (Group major categories but list material items including name of organisation) Paid in cash Total of various gifts bought by Minister R M Mathebula retirement Angolan Ambassador and wife Ministers farewell gift T M Sharp retirement P F van der Walt retirement Hillview Project sponsorship K Savage Retirement Fezikile Secondary School Oudsthoom Farewell gift for Mrs M Kemp Funeral contribution for Mr S S Mosehla (scholarship beneficiary) Farewell gift for Mrs N S S Mahura Farewell gift for Mrs M Papenfuss Farewell gift for Mrs Koekemoer TOTAL 5 10 5 5 5 30 224 5 5 7 166 5 5 24 5 2 2010/11 R000 2009/10 R000
202
ANNEXURE 2A Statement of Financial Guarantees issued as at 31 March 2011 Local Guarantees repayments/ cancelled/ reduced/ released during the year R000 RealGuarised anteed losses internot est for recovClosing year erable balended i.e. ance 31 31 claims March March paid 2011 2011 out R000 R000 R000
Guarantor institution
Guarantee in respect of Motor vehicles
Original guaranteed capital amount R000
Opening balance 1 April 2010 R000
Guarantees drawdowns during the year R000
Revaluations R000
Standard Bank Subtotal Housing Standard Bank FirstRand Bank ABSA FNB Old Bank Mpumalanga Subtotal TOTAL
4 4 69 48 193 38 17 16 381 385
4 4 69 48 193 38 17 16 381 385
4 48 193 38 279 283
0 0 69 17 16 102 102
ANNEXURE 2B Statement of Contingent Liabilities as at 31 March 2011 Liabilities paid/ cancelled/ reduced during the year R000 1 330 70 200 Liabilities recoverable (Provide details hereunder R000) -
Nature of liability Claims against the department Opening balance Verern Builders CC/Thubelisha Homes Ibuyile Development Consortium/Government of RSA Eric Sefu/Minister of Housing Trutees of Giancarlo Vessio Family Trust vs Minister of Human Settlements Residents of Ekurhuleni/Minister of Human Settlements and others Juta/Minister of Housing Kriegler/Minister of Housing Andre Grobler/Minister of Housing
Opening Balance 1 April 2010 R000 72 438
Liabilities incurred during the year R000 30 300 50 50 50 68
Closing Balance 31 March 2011 R000 72 438 (1 330) (70 200) 30 300 50 50 50 68
203
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2011 Liabilities recoverable (Provide details hereunder R000) -
Nature of Liability Kabonga Longo/KZN Tribuna Tshwane Residents/Minister of Human Settlements Residents of Joe Slovo/Minister of Human Settlements Madibeng Municipality Cassiem Alexander & Another/Minister of Human Settlements & others Ntombentsha Beja & others /Minister of Human Settlements Musa Busisiwe Mdladla/Minister of Housing & Others Madonsela & Another/Minister of Housing & Another Thembisa Beauty None/Minister of Housing & Another Mmankwe Sina Moobi/Minister of Housing & Another Thulisile Immaculate Ntsele/Minister of Housing & Another Matikazi Nyathi/Minister of Housing & Another Thelma Thembisa Sibutha/Minister of Housing & Another Victerss Sibutha/Minister of Housing & Another Bonisiwe Elizabeth Sithole / Minister of Housing & Another Phillip Sello Mazibuko/Minister of Housing & Another Hozabalise Selina Mbane/Minister of Housing & Another Ernet Ntombikanya Mchako/Minister of Housing & Another Tshepo Mathews Methola/Minister of Housing & Another Bjang Peit Malahlela/Minister of Housing & Another Keketso Adelina Molingoane/Minister of Housing & Another Ntombisa Ester Ndaba/Minister of Housing & Another Rosina Papo/Minister of Housing & Another Virginia Sebola/Minister of Housing & Another Barone Grand Sedibe/Minister of Housing Lindiwe Sesing/Minister of Housing & Another Elias Lungile Thambe/Minister of Housing & Another Busisiwe Tshabangu/Minister of Housing & Another Nelesco/Gwebu and Nelesco/Nhlapo Mpange Zithulele/Minister of Human Settlements Busisiwe Tshabangu/Minister of Housing & Another Eagle Valley v Illegal Occupants
Opening Balance 1 April 2010 R000
Liabilities incurred during the year R000 60 50 200 50 100 1 000 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 400 160 20 300 615
Liabilities paid/ cancelled/ reduced during the year R000 56 315 71 901
Closing Balance 31 March 2011 R000 60 50 200 50 100 1 000 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 400 104 20 300 300 4 920
204
City of Johannesburg v Blue Moonlight TOTAL 72 438
4 383
ANNEXURE 3 CLAIMS RECOVERABLE Confirmed balance outstanding 31/03/2011 R000 31/03/2010 R000 22 1 23 Unconfirmed balance outstanding 31/03/2011 R000 500 22 19 1 1 1 328 1 5 1 877 31/03/2010 R000 16 31 6 35 1 1 19 2 151 2 14 66 21 1 362 1 5 3 731 Total 31/03/2011 R000 500 22 19 1 1 1 328 1 5 1 877 31/03/2010 R000 16 31 6 22 35 1 1 19 2 151 2 1 14 66 21 1 362 1 5 3 754
Government Entity Department SARS GCIS Department of Home Affairs Gauteng Community Safety International Relations and Cooperation (Foreign Affairs) Staistics South Africa (Stats SA) Unemployment Insurance Fund Department of Safety and Security Department of Defence and Military Veterans Department of Correctional Services Department of Education KZN Department of Justice Department of Labour Department of Public Works Department of Water Affairs Gauteng Housing Limpopo Provincial Government Department of Health Subtotal Other Government Entities National Home Builders Registration Council National Housing Finance Corporation South African Social Security Agency Subtotal TOTAL
23
1 1 1 878
32 5 1 38 3 769
1 1 1 878
32 5 1 38 3 792
205
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2011 ANNEXURE 4 Inter-Government Payables Confirmed balance outstanding 31/03/2011 R000 31/03/2010 R000 Unconfirmed balance outstanding Total
Government Entity Departments Current Department of Arts, Culture & Tourism, KZN Western Cape LG & Housing Department of Justice and Constitutional Development Mpumalanga Provincial Government Presidency Water Affairs Health and Social Development South African Police Service Total Other Government Entities Current Government Printing Works PALAMA Special Investigations Unit Total ANNEXURE 5 Inventory Inventory Opening balance Add/(Less): Adjustments to prior year balance Add: Additions/Purchases - Cash Add: Additions - Non-cash (Less): Disposals (Less): Issues Add/(Less): Adjustments Add/(Less): Weighted Average price range Closing balance
31/03/2011 31/03/2010 31/03/2011 31/03/2010 R000 R000 R000 R000
714 14 67 318 32 2 1 147
1 1
22 -
714 14 67 394 32 2 1 223
1 22 23
76 76
22
66 57 4 435 4 548
2 2
68 57 4 435 4 560
Note
Quantity 7 517 53 160 (83) (30 689) 29 905
2010/11 R000 41 294 (169) (4) 8 170
Quantity 18 785 27 897 1 337 (2 627) (37 049) (826) 7 517
2009/10 R000 57 114 5 (2) (126) (7) 41
206
207
SA HOUSING FUND MANAGEMENT REPORT for the year ended 31 March 2011
1. General review of the state of financial affairs
The change in focus in housing delivery to quality housing and a shift to alternative forms of housing tenure have formed the background against which sustainable housing delivery was achieved. As reported in 2003/2004, changes in the financial management legislative environment precipitated a need to review the funds-flow mechanisms to provinces. In this regard, MinMEC approved that the process for the disestablishment of the fund be commenced with and draft legislation is in the process of being approved to give effect to that decision. A draft Bill has been submitted to the Minister for consideration. The delisting of the South African Housing Fund was approved with effect from 18 November 2003.
In terms of Section 11(5)(a) of the Housing Act (Act No 107 of 1997) the Director-General: Housing is the Accounting Officer of the South African Housing Fund. No emoluments were paid to the accounting authority from the funds of the South African Housing Fund since the Accounting Officer is being remunerated by the Department of Housing.
2. Accounting Authoritys emoluments
3. Auditors
In terms of Section 188 of the Constitution of the Republic of South Africa, 1996 (Act No 108 of 1998) read with Sections 4 and 20 of the Public Audit Act, 2004 (Act No 25 of 2004) and Section 11(8) of the Housing Act, 1997 (Act No 107 of 1997) the Auditor-General has the responsibility to audit the books and statements of account and balance sheet of the South African Housing Fund. The Office of the Auditor-General will continue to perform the statutory audit of the South African Housing Fund.
4. Approval of Financial Statements
The Financial Statements set out on pages 210 to 213 for the South African Housing Fund were approved by the Accounting Officer.
N L Mbengo ACTING CHIEF FINANCIAL OFFICER 31 May 2011
T W Zulu DIRECTOR-GENERAL 31 May 2011
208
REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE SOUTH AFRICAN HOUSING FUND
REPORT ON THE FINANCIAL STATEMENTS Introduction 1. I have audited the accompanying financial statements of the South African Housing Fund, which comprise of the balance sheet as at 31 March 2011 and cash flow statement for the year then ended, a summary of significant accounting policies and other explanatory information as set out on pages 211 to 214. Accounting officers responsibility for the financial statements 2. The accounting officer is responsible for the preparation of these financial statements in accordance with the liquidity basis of accounting as set out in note 1 to the financial statements and for such internal control as management determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor-Generals responsibility 3. As required by section 188 of the Constitution of the Republic of South Africa, 1996 (Act No 108 of 1996) and section 4 of the Public Audit Act of South Africa, 2004 (Act No 25 of 2004) (PAA), my re sponsibility is to express an opinion on these financial statements based on my audit. 4. I conducted my audit in accordance with International Standards on Auditing and General Notice 1111 of 2010 issued in Government Gazette 33872 of 15 December 2010. 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. 5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors 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 entitys preparation 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 entitys 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. 6. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion 7. In my opinion, the financial statements present fairly, in all material respects, the financial position of the South African Housing Fund as at 31 March 2011, and its and cash flows for the year then ended in accordance with the liquidation basis, as set out in note 1 to the financial statements and the requirements of the General Notice 1111 of 2010 issued in Government Gazette 33872 of 15 December 2010. Emphasis of matters 8. I draw attention to the matters below. My opinion is not modified in respect of these matters: Basis of Accounting 9. The South African Housing Funds Policy is to prepare financial statements on the liquidity basis as set out in note 1 to the financial statements. Disestablishment of the SA Housing Fund 10. As disclosed in note 4 to the financial statements, the disestablishment of the South African Housing Fund was approved by the minister and Members of the Executive Council on 15 August 2003. The department is considering repealing the Housing Act and developing a new Human Settlements Act in light of the Departments new mandate, to make provision for the disestablishment of the South African Housing Fund.
209
REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE SOUTH AFRICAN HOUSING FUND
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 11. In accordance with the PAA and in terms of General Notice 1111 of 2010, issued in Government Ga zette 33872 of 15 December 2010, I include below my findings on the annual performance report as set out on pages 211 to 214 and material non-compliance with laws and regulations applicable to the department. Predetermined objectives 12. There are no material findings on the annual performance report. Compliance with laws and regulations 13. There are no findings concerning material non-compliance with laws and regulations applicable to the entity. INTERNAL CONTROL 14. In accordance with the PAA and in terms of General Notice 1111 of 2010, issued in Government Gazette 33872 of 15 December 2010, I considered internal control relevant to my audit, but not for the purpose of expressing an opinion on the effectiveness of internal control. There are no significant deficiencies in the internal control that resulted in a qualification of the auditors opinion on the financial statements and/or findings on predetermined objectives and/or material non-compliance with laws and regulations.
Pretoria 31 July 2011
210
SA HOUSING FUND STATEMENT OF FINANCIAL POSITION as at 31 March 2011 Notes Assets Current Assets Trade and other receivables Cash and Cash Equivalents Total Assets 1 4 32 585 32 585 32 585 32 585 32 585 32 585 31 March 2011 R000 31 March 2010 R000
Equity and Liabilities Capital and Reserves Treasury Reserves Non Distributable Reserves Accumulated profits/(Losses) Current Liabilities Trade and other payables Total Equity and Liabilities 2 31 958 31 958 627 627 32 585 31 958 31 958 627 627 32 585
211
SA HOUSING FUND CASH FLOW STATEMENT for the year ended 31 March 2011 Notes Cash flows from finance activities (Increase)/Decrease in financial instruments Net cash inflow/(outflow) from investing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 4 32 585 32 585 32 585 32 585 31 March 2011 R000 31 March 2010 R000
212
SA HOUSING FUND SUMMARY OF ACCOUNTING POLICIES for the year ended 31 March 2011
The principle accounting policies adopted in the preparation of these financial statements are set out below. The financial statements are prepared on the liquidation basis as set out below. Since the entity no longer conduct its function in terms of the National Housing Act and is awaiting to be disestablished and the Housing Act to be amended. 1.1 Financial Instruments Financial instruments carried on the balance sheet include cash and bank balances, receivables and creditors. Measurement Financial instruments are initially measured at cost. Subsequent to initial recognition these instruments are measured as set out below. Trade and other receivables Trade and other receivables are stated at cost less provision for doubtful debts. Cash and cash equivalents Cash and cash equivalents are measured at cost. Financial liabilities Financial liabilities are recognised at cost. 1.2 Administration Costs All administration costs are borne by Department of Human Settlements.
1. Basis of Preparation
213
SA HOUSING FUND NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2011
1. Trade and other Receivables

31 March 2011 R000 Debtors Less: Provision for bad debt 421 (421) 31 March 2010 R000 421 (421) -
2. Trade and other Payables

31 March 2011 R000 Post office account 627 627 31 March 2010 R000 627 627
3. Disestablishment of the S A Housing Fund
At the meeting of the MinMEC Committee of 15 August 2003, MinMEC approved the disestablishment of the South African Housing Fund and the Provincial Housing Development funds established in terms of various provincial Housing Acts. A draft Bill has been submitted to the Office of the State Law Adviser and to the National Treasury for consideration and input. The department is also considering repealing the Housing Act and developing a new Human Settlements Act in light of the departments new mandate. The delisting of the South African Housing Fund was approved with effect from 18 November 2003.
4. Cash and cash equivalents

31 March 2011 R000 Cash on hand Cash with CPD 25 229 7 356 32 585 31 March 2010 R000 25 229 7 356 32 585
214
4
215
HUMAN RESOURCE MANAGEMENT

TABLE 1.1 - Main service for service delivery improvement and standards
Main services None None None Actual customers Potential customers Standard of service Actual achievement against standards
TABLE 1.2 - Consultation arrangements for customers

Type of arrangement None None None Actual customers Potential customers Actual achievement
TABLE 1.3 - Service delivery access strategy

Access strategy None None None Actual achievements
TABLE 1.4 - Service information tool

Type of information tool None None None Actual achievements
TABLE 1.5 Complaints mechanism

Complaints mechanism None None None Actual achievements
216
TABLE 2.1 Personnel costs by Programme

Compensation of Employees Expenditure (R000) 73 423 0 26 534 57 326 19 890 0 39 282 0 216 455 Professional and Special Services (R000) 0 0 0 0 0 0 0 0 0 Compensation of Employees as percentage(%) of Total Expenditure 38.9 0 0.2 36.6 60.9 0 45 0 1.3 Average Compensation of Employees Cost per Employee (R000) 106 0 38 82 29 0 56 0 311
Programme
Total Voted Expenditure (R000) 188 598 0 15 626 545 156 830 32 642 0 87 386 0 16 092 000
Training Expenditure (R000) 0 0 0 0 0 0 0 0 0
Employment 696 696 696 696 696 696 696 696 696
DHS: Administration DHS: Housing delivery support DHS: Housing development finance DHS: Housing plan & delivery supp DHS: Housing pol research & monitor DHS: Housing policy research & plan DHS: Strat relation and govern DWA: Administration Total as on Financial Systems (BAS)
TABLE 2.2 Personnel costs by salary band

Salary bands Percentage of total personnel cost for Department 1.2 4.1 18.3 39.7 24.7 0.4 0.2 2.1 3.1 3.9 0 97.5 Average compensation cost per employee (R) 97 556 133 090 217 378 377 377 753 139 19 714 18 263 208 636 323 714 860 100 3 850 299451 Total personnel cost for Department including goods and transfers (R000) 219 831 219 831 219 831 219 831 219 831 219 831 219 831 219 831 219 831 219 831 219 831 219831
Compensation of employee cost (R000) 2 634 8 917 40 215 87 174 54 226 828 347 4 590 6 798 8 601 77 214407
Number of employees 27 67 185 231 72 42 19 22 21 10 20 716
Lower skilled (Levels 1-2) Skilled (Levels 3-5) Highly skilled production (Levels 6-8) Highly skilled supervision (Levels 9-12) Senior management (Levels 13-16) Contract (Levels 1-2) Contract (Levels 3-5) Contract (Levels 6-8) Contract (Levels 9-12) Contract (Levels 13-16) Abnormal Appointment TOTAL
217
TABLE 2.3 Salaries, overtime, home-owners allowance and medical assistance by programme
Programme Prog 1: Administration Prog 2: Housing Policy Research & Monitoring Prog 3: Housing Planning and Delivery Support Prog 4: Housing Development Finance Prog 5: Strategic Relations and Governance Prog 1: Administration31000000 TOTAL Salaries (R000) 58940 14217 41316 19584 33170 11 167238 Salaries as % of personnel cost 78.4 76.3 72.9 72.5 78.3 100 76.1 Overtime (R000) 577 38 151 537 18 0 1321 Overtime as % of personnel cost 0.8 0.2 0.3 2 0 0 0.6 HOA (R000) 2113 366 1363 659 833 0 5334 HOA as % of personnel cost 2.8 2 2.4 2.4 2 0 2.4 Medical ass (R000) 2586 497 1535 970 1280 0 6868
TABLE 2.4 Salaries, overtime, home-owners allowance and medical assistance by salary
Salaries (R000) 1739 5963 28726 66546 44044 822 327 4486 6330 8178 77 167238 Salaries as % of personnel cost 66 65.8 70.2 73.5 79.6 97.3 94.2 97.5 91.9 94.4 96.3 76.1 Overtime (R000) 17 333 546 355 0 7 9 52 4 0 0 1323 Overtime as % of personnel cost 0.6 3.7 1.3 0.4 0 0.8 2.6 1.1 0.1 0 0 0.6 HOA (R000) 200 463 1252 1519 1860 0 0 0 0 40 0 5334 HOA as % of personnel cost 7.6 5.1 3.1 1.7 3.4 0 0 0 0 0.5 0 2.4 Medical ass. (R000) 239 720 2567 2557 743 0 0 0 27 15 0 6868
Salary bands Lower skilled (Levels 1-2) Skilled (Levels 3-5) Highly skilled production (Levels 6-8) Highly skilled supervision (Levels 9-12) Senior management (Levels 13-16) Contract (Levels 1-2) Contract (Levels 3-5) Contract (Levels 6-8) Contract (Levels 9-12) Contract (Levels 13-16) Abnormal appointment TOTAL
218

DHS Annual Report 2010-2011 B

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

DHS Annual Report 2010-2011 B

Uploaded by

Copyright:

Available Formats

DEPARTMENT OF HUMAN SETTLEMENTS

RP93/2011 ISBN 978-0-621-40113-4

Compliance with laws and regulations

Pretoria 31 July 2011

Transfers and subsidies

Payment for capital assets

Payment for financial assets

2. Housing Policy Research and Monitoring

Transfers and subsidies

Payment for capital assets

Payment for financial assets

3. Housing Planning and Delivery Support

Transfers and subsidies

Payment for capital assets

Payment for financial assets

4. Housing Development Finance

Appropriation per programme 2010/11 2009/10

Payment for capital assets

Payment for financial assets

5. Strategic Relations and Governance

Transfers and subsidies

Payment for capital assets

APPROPRIATION STATEMENT for the year ended 31 March 2011

Payment for financial assets

Transfers and subsidies

Payment for capital assets

Payment for financial assets

TOTAL (brought forward)

Reconciliation with Statement of Financial Performance

Direct Exchequer receipts

Actual amounts per statement of financial performance (total revenue)

Direct Exchequer payments

Prior year unauthorised expenditure approved without funding

Actual amounts per statement of financial performance (total expenditure)

Goods and services

Interest and rent on land

Provinces and municipalities

Departmental agencies and accounts

Universities and technikons

Foreign governments and international organisations

Public corporations and private enterprises

APPROPRIATION STATEMENT for the year ended 31 March 2011

Gifts and donations

Buildings and other fixed structures

Machinery and equipment

Specialised military assets

Land and subsoil assets

Software and other intangible assets

Payments for financial assets

Direct changes against the National/Provincial Revenue Fund

List all direct charges against the National/Provincial Revenue Fund

President and Deputy President salaries

Member of Executive Committee / parliamentary officer

Judges and magistrates salaries

Sector education and training authorities (SETA)

National Skills Fund

Expenditure as % of Final Appropriation Actual Expenditure R000 1 718 -

Transfers and subsidies

Payment for capital assets

Payment for financial assets

Transfers and subsidies

Payment for capital assets

Payment for financial assets