Download
1 / 10
100 likes | 110 Views
DEPARTMENT OF PUBLIC WORKS 4 th Quarter Performance of 2015/16 and 1 st Quarter Performance of 2016/17 for the Department of Public Works Standing Committee on Appropriation Parliament, Cape Town 15 th September 2016. Office of the Director-General. Content.
E N D
DEPARTMENT OF PUBLIC WORKS 4th Quarter Performance of 2015/16 and 1st Quarter Performance of 2016/17 for the Department of Public Works Standing Committee on Appropriation Parliament, Cape Town 15th September 2016 Office of the Director-General
Areas of under expenditure Summary Expenditure per Economic Classification – as at 31st March 2016 (2015/16) • The Department spent 99% of the total allocation for 2015/16 and the unspent of 1% relates to: • Compensation of employees under spent (4%) due to vacant positions filled in the latter part of the financial year. The under spending relate to EPWP. • Goods and services under spent (2%) due to late receipt of invoices and therefore reported as accruals in the financial statements. • Machinery and equipment under spent (16%) and the under spent amount is linked to vacancies
Summary Expenditure per Economic Classification - 30 June 2016 • Compensation of employees expenditure of 25% is in line with the guidelines for the first quarter. • Goods and services expenditure of 16% is within the spending trend for the first quarter. Not under and over spending projected • Transfer and subsidies expenditure of 28% is in line with drawings, and funds will be fully spent at the end of the financial year. • Machinery and equipment spending of 16% is within the guidelines for the first quarter.
DPW– 2015/16 and 2016/16 Q1 % Achievement per Programme Of the 38 targets for the Quarter,21 were achieved (55%) Of the 22 targets for the Quarter,17 were achieved (77%)
CHALLENGES OF THE IDT • Vulnerable funding model opening the organisation to the threat of solvency i.e. model highly dependent on business portfolio size, payments by clients, and management fee rates. • Prolonged transformation process impacting adversely on staff morale, staff turnover, strategic and operations planning, and organisational performance. • Funding from National Treasury was obtained at a level of R50 million for the last three years ending 31 March 2016. The support helped to bridge the transition to self-funding. Considering the vulnerable state of the IDT finances, the continuation of the support for a further two years will strengthen the organisation. • Action has been and continue to be taken against responsible officials for transgressions and dereliction of duty. These include action against the former CFO and Acting Executive responsible for Strategy and Corporate Performance both of whom had their services terminated. After 11 consecutive unqualified audit opinions, spanning 2002/03 to 2012/13, the IDT received a qualified audit opinion for the 2013/14 financial year followed by a disclaimed opinion in 2014/15 and another disclaimer in 2015/16. Basis of the disclaimer • Presentation of material balances of Programme spend and of Programme reserves and liabilities for audit purposes without accurate and complete underlying accounting records. • Inadequacy of reconciliations performed on the underlying accounts relating to Management fees, Trade receivables, Impairment of Trade receivables and Provision for doubtful debts. • The impact of take-on balances in the project accounting system emanating from the migration process that took place in 2013/14.
