COGTA ANNUAL REPORT 2020

Emfuleni with sewer issues. The funds were meant to be paid directly to ERWAT to effect repairs on the said sewer; however, due to several technicalities, Ekurhuleni Metropolitan Municipality, who is the only shareholder, refused to accept the funding resulting in no expenditure. In agreement with the Provincial Treasury, the funds will be re-allocated to the Department during the following reporting period. Programme 4: Traditional Institutional Management The programme was allocated the least budget during the reporting period. The allocation for this programme amounted to R17 896 000 , of which R14 792 000 was spent, which represented an average of 83% of the total allocation. The total amount of under expenditure relates to the funds transferable to Tradition Councils, which could not be transferred owing to outstanding financial reports from the respective councils. Rollovers The Department did not request any rollovers during the reporting period. Unauthorised Expenditure The Department did not incur any unauthorised expenditure during the reporting period. Fruitless and Wasteful Expenditure The Department did not incur any fruitless and wasteful expenditure during the period under review. Improving governance Nine municipalities will be supported with ABCD and public participation initiatives. This will entail building capabilities, capacity and understanding of municipal Office of the Speaker officials through introducing newmethods for Public Participation, through the use of ICT and applying asset approach to development to provide content to Public Participation. Advisory support will be provided to themunicipalities to develop and implement audit response action plans based on findings raised by the Auditor-General of South Africa (AGSA). The implementation of the Future plans of the department Transformation of the state and governance

Programme 1: Administration The programme was allocated a total budget of R143 956 000 , of which R127 934 000 was spent. This represents an average of 89% of the total budget allocated. The remaining 11% or R16 022 000 could not be spent primarily because of the following reasons: The Department was allocated the former Office of the Premier building for office accommodation. The said building was availed for occupation on or before the end of July 2019. However, due to compliance issues, the Department could not occupy; as a result, R4 500 000 could not be spent on office partitioning, and about R500 000 budgeted for cleaning and maintenance could not be spent as planned. Moreover, legal costs were estimated based on previous and periodic events, which mostly did not materialize. The result was that an amount of R1 000 000 was saved on legal expenses. The Department did not pay any bonuses, progression increases, or similar benefits to senior managers; this and few vacancies resulted in under expenditure of R7 000 000 . These significant savings and other minor savings like traveling, stationery, bursaries, and accommodation resulted in a total savings of R16 000 000 reflected above. This under- expenditure did not affect the performance of the programme materially. Programme 2: Local Governance The programme spent an amount of R232 077 000 out of the allocated budget of R236 228 000 . The under-expenditure represents an average of 2% or R4 151 000 in nominal terms. The under expenditure of 2% or R4 000 000 relates to mainly savings made from budgeted data and cellphone costs budgeted for Community Development Workers (CDW). Due to attrition mostly from death, a number of CDW currently employed is 350 compared to the required number of 570 . Put otherwise, a 39% vacancy rate for CDW resulted in savings of R4 000 000 on cellphone and data contracts. Programme 3: Development and Planning The programme was allocated a total budget of R164 202 000 during the reporting period, of which R120 978 000 was spent. This is 74% of the total budget allocated. The highest contributor to under expenditure in this programme was R20 000 000 budgeted to support

G A U T E N G P R O V I N C I A L G O V E R N M E N T I C O- O P E R A T I V E G O V E R N A N C E A N D T R A D I T I O N A L A F F A I R S ANNUAL REPORT 2019/20 12