GDID ANNUAL REPORT 2024/25

GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT VOTE 15

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2025

• The Department is leveraging the use of external consultant due to limited internal capacity for specialised functions in infrastructure projects, in addition it appoints probity auditors as part of its internal control framework. This intervention serves to strengthen procurement processes. A decrease in consultants expenditure is due to less feasibility studies performed in the current year due to Solar projects being completed in the year 2023/24. • Legal fees are mainly court order payment because of breach of contracts on some of the Department of health institution projects. • Contractors related to expenditure on employee wellness. • Included in agency and support is training and skills development offered to the EPWP beneficiaries and the payment of stipends to the two EPWP programmes namely Health and Vacant land. Decrease is due to budget constraints on Department which resulted in less training offered in the current year compared to prior financial year. • Due to prior year accruals paid with the current year’s budget (2024/25) the Department incurred R 15.9 million on regularity audits compared to R10,7 million incurred in the previous financial year. • Increase in fleet service is consist with inflationary adjustment for the year. • Increase in the inventory for the current year is due to protective clothing and uniform bought for technical staff in line with the job requirements. • Included in consumables are printer cartridges, stationery, cleaning material and building materials. Decrease is because of less stationery, printing and office supplies bought during the year due to remote working or implementation of business continuity plan. • Increase in operating leases is due to accruals from previous financial year settled in the current financial year and signing of new lease agreement. • An increase in property payments is attributable to annual escalation on security fees, increase in abandoned site contributed to increase in demand for security services. Poor condition and deterioration of state property has resulted in increase on property maintenance costs. • Decrease in travelling and subsistence is due to less travel by the health branch technical staff since Department of Health has taken some of the functions. • Included in venue and hire is EXPO conducted by the Department for Gauteng youth. In addition, venues were hired for strategic planning purposes. • Due to budget constrains within the Department, management took a decision to trade off training allocation hence less budget was allocated and spent. Training budget has increased in the next financial year to ensure employee training resumes in the years going forward. • Other operating expenditure related to relocation of staff to new offices and courier services.

4.1. Minor assets

2024/25

2023/24

PART

Note

R’000

R’000

Tangible capital assets

186 186

1,836 1,836

Machinery and equipment

Total

186

1,836

4

173

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT