Department of Infrastructure Development Annual Report 2021-2022

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Goods and services reflect an increase in expenditure due to the payment of accruals carried through from the previous financial year. • The increase in advertising and marketing costs relate to procurement of signage for regional offices. There was also an increase in advertisement for recruitment and tenders. • The increase in catering is as a result of increased stakeholder engagements as compared to the previous year. • The increase in Computer services arises from Prior year outstanding Microsoft licenses that were only settled in the 2021-2022 financial year. • The increase from R1 167m to R17 405m on Cons: Business and Advisory was due to the probity Audit fees amounting to R14million and R3million for the use of consultants. Probity auditors advise the HOD in terms of the procurement processes. • There was an increase in legal fees resulting from court orders amounting to R23 million. The court orders were a result of contractual disputes while the Department was still part of DPTRW. • An increase in agency and support is because of the training and skills development conducted by consultants. • The increase of Audit cost is due to the investigations that took place during the financial year under review. • The decrease in fleet services is due to a reduced amount of accrual payments at the beginning of the financial year. • The increase in Inventory was due to high demand of protective clothing. • The decrease in consumables was due to less requirement of detergents as compared to the previous financial year where covid-19 regulations enforced for buildings to be sanitized if there where cases identified. • Arrears on rentals were settled with Bafana Ncube in the current year and there was an annual rental escalation that resulted in an increase in the operating lease expenditure. • Training and Development: the increase was due to training that was conducted for job specifics. • Other operating expenditure includes courier and delivery services, professional bodies fees, settlement cost and storage service costs. • The increase in venues and facilities relates to costs incurred after the relaxation of Covid-19 restrictions on venues and facilities.

4.1

Minor assets

Note

2021/22

2020/21

4

R’000

R’000

Tangible assets

Machinery and equipment

428

207

Total

428

207

4.2

Computer services

Note

2021/22

2020/21

4

R’000

R’000

External computer service providers

22 334

10 381

Total

22 334

10 381

The increase is due to additional billing by Microsoft on emails as well as migration of DID servers to SITA hosting.

4.3

Audit cost – External

Note

2021/22

2020/21

4

R’000

R’000

Regularity audits

8 425

10 104

Investigations

14 505

-

Total

22 930

10 104

Due to the investigations backlog of prior year irregular expenditure, the Department appointed service providers to fast-track the investigation of historical irregular expenditure balances.

207

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT