“We spent 98% of our adjusted budget appropriation amounting to R1, 515-billion, and appointed FNB as the new provincial banker. Furthermore, we assisted the Department of Health and Social Department to implement a turnaround strategy and improve revenue collection; payment to suppliers in particular small and medium sized companies was also improved during the period under review,” said Gauteng Finance MEC Mandla Nkomfe.
MEC Nkomfe was tabling the 2010/ 2011 Annual Report of GDF at the Gauteng Provincial Legislature today.
He said GDF was committed to restoring the fiscal wellbeing of the provincial government. In the period under review, the department introduced measures to instill and engender the stringent culture of financial control and management. These were:
- ring-fencing conditional grants and infrastructure funds to ensure that suppliers are paid on time
- ensuring that the age analysis of accruals is less than 30 days in a given month
- ensure that departments operate within the agreed cash forecasts and/or allocations
- reduce substantially the unauthorised expenditure
- decrease inflow of ex-employee debts
- reduce reliance on overdraft for funding purposes
- ensure that the employees in the system are validated.
The department also contributed to the creation of decent work, building a growing inclusive economy, and sustainable livelihoods.
In response to the high volumes of job applications that the department receives, the Professional Job Centre at Thusong Centre, in Maponya Mall, Soweto was established. This facility brings government recruitment closer to where people are, in a retail complex frequented by hundreds on a monthly basis. As a result, people can now apply for government jobs from anywhere in the country if they have connection to the Internet, thereby increasing the pool of individuals from which we can select the best people to fill vacant positions in Gauteng Provincial Government (GPG).
It continued to use procurement spend as a strategic tool to facilitate Broad Based Black Economic Empowerment (BBBEE), develop small and medium sized companies and facilitate the creation of job opportunities.
In this regard, 2% of all agricultural products consumed in provincial hospitals and other GPG facilities were sourced directly from emerging farmers. This initiative contributed to the creation of decent work, building inclusive economic growth, and sustainable livelihoods.
Also, in line with government’s commitment to creating employment opportunities, 74,1% of maintenance contracts for medical equipment were awarded to BBBEE suppliers who are Original Equipment Manufacturer accredited agents.
“We are committed to developing small and medium sized companies. We fully understand the important role that this sector play in rejuvenating local economies, encouraging innovation and development of new products; and of course creating job opportunities for millions of our people. As such, in the year under review, we prioritised payment of invoices from small and medium sized companies for services rendered to the provincial government,” MEC Nkomfe said.
Towards Operation Clean Audit:
The GPG is on track to achieve the target of clean audits by 2014 in line with operation “Clean Audit”. The 2011 GPG audit outcomes report show that out of 12 government departments in the province, a total of nine including GDF received unqualified audit reports in the year 2010/2011.
Two departments, Office of the Premier and the Gauteng Provincial Legislature, achieved clean audit reports (financially unqualified with no other matters). Only the Department of Health and Social Development received a qualified report in the year under review. GDF is working closely with the department of Health and Social Department to improve the audit outcome.
“Although the trend is towards improvement, we urge departments to comply with regulations, address the skills related challenge, develop or enhance policies or procedures that will improve the internal control environment,” MEC Nkomfe added.
GDF is also implementing a number of key interventions to assist departments to improve financial management. These include training and development of staff in the Offices of Chief Financial Officers, auditing interim financial statements, provide feedback on monthly reports by departments, clearing of confirmed interdepartmental balances and process review and re-engineering.
Enquiries:
John Sukazi
Tel: (012) 355-2161
Cell: 0837724885
Email: gdfmedia@gauteng.gov.za
