DID ANNUAL REPORT 2022 23

Annual Report 2022-2023

4. REPORT OF THE ACCOUNTING OFFICER 4.1 Overview of the Operations of the Department

As Accounting Officer, I am pleased to present our Annual Report and Accounts, which provide a fair and robust performance overview of the 2022/23 reporting period. The Department is required to compile an annual performance report as per section 40(3) (a) of the Public Finance Management Act (PFMA), in accordance with the Performance Management and Reporting Framework. The 2022/23 financial year marks the mid-term in the implementation of the five-year Strategic Plan within the sixth administration of the political term of office. The Department has made some progress in certain areas; this was made possible mainly by the opportunity to re prioritise and carefully chart our journey to recovery. Amidst existing challenges, the Department will continue in its efforts in implementing its strategic priorities such that these outcomes are attained, mindful of the Strategic Plan 2020/21 – 2024/25 as the main driver of our implementation as a department. This annual report reflects on the performance of the Department, thus highlighting the achievements and the challenges faced by the Department during the implementation of our mandate. The Department continues to be at the forefront in responding to the needs of client departments, such as office accommodation through lease management, disposal of non-strategic assets, implementation of infrastructure projects, infrastructure maintenance, and job creation. The Department has also experienced numerous setbacks in terms of achieving its set targets on procurement spent on designated groups. Supply Chain Management performance on the percentage of budget spent on township enterprises against identified commodities currently stands at 29,70%, which is above the 7,19% of the previous financial year. The pricing structure and the unwillingness of contractors to sub-contract to designated groups continues to affect our performance in this area. With regard to the pricing structure, bids that are too Overview of the Results and Challenges for the Department

high or too low or are submitted with incomplete tender documentation results in disqualification of suppliers.

Property Management

The Department also serves as a custodian of all Gauteng Provincial Government immovable assets. It is, therefore, important to ensure that all immovable assets in the asset register are complete, accurate, and disclosed with the correct values. The immovable asset register provides the baselines for property portfolio analysis and enables strategic property development. To date, the Department managed to verify over 8 000 assets in the Immovable Asset Register (IAR) and released properties for socio economic infrastructure development. In addition, property management provides facilities to user departments and utilisation inspections conducted for office accommodation. This will result in improved efficiency and revenue collection, as well as improved management of the provincial property portfolio.

12

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT