DID ANNUAL REPORT 2023_24

Annual Report 2023-2024

GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT VOTE 15

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2024

4. Goods and services

2023/24

2022/23

Note

R’000

R’000

Administrative fees

6

13

Advertising Minor assets

3 851 1 836 6 084 2 365 2 242

3 356

434 103 603

4.1

Bursaries (employees)

Catering

Communication Computer services

1 088

15 140 43 575 109 836 144 373 10 794 46 859 10 912 396 265 298 143 22 448 318 6 471

28 537

4.2

Consultants: Business and advisory services

6 794

Legal services Contractors

62 038

2 432

Agency and support / outsourced services

41 992 38 056 43 882

Audit cost - external

4.3

Fleet services Inventories Consumables

3 325 7 790

4.4 4.5

Operating leases Property payments Travel and subsistence Venues and facilities Training and development Other operating expenditure

470 541 263 011 20 231

4.6 4.7

1 146

1 916

12 629

11 455

124

-

4.8

Total

1 135 417 1 007 597

Goods and services reflect an increase in expenditure due to the payment of accruals carried through from the previous financial year and annual escalation on property leases. • An increase in advertising was due to more recruitment and tender adverts in the current year. • In the current year the Department took a decision to empower, improve the skills and qualification of the employees thereby issuing out 277 bursaries to employees. Most of the bursaries were awarded to employees who do not have any formal qualifications. • A reduction in computer services in the financial year 2023/24 related to less procurement of software used by the engineers and architects for designing and planning. • In the current year the Department provided catering service for 365 EPWP beneficiaries for 60 days during training programme at the college. • Computer services related to payment of Microsoft licence, SITA for back up, disaster recovery and hosting Departmental servers and procurement of software used by property management, engineers and architects for designing and planning. 2022/23 expenditure include accruals for 2021/22 that was settled in 2022/23 • Included in the Consultants is probity audit cost, competence assessment and qualification verification for new employees and feasibility studies on Solar projects. Increase in the cost for consultants in the year 2023/24 was mainly due to feasibility studies that were carried on Solar projects by IRPS. Based on the outcome of the feasibility studies the Department was allocated additional funding of R329 million during budget adjustment period for the implementation of the solar projects in the current year. • Increase in Legal fees is due to court order payment amounting to R77,3 million because of breach of contracts on some of the health institution projects. • An increase in agency and support is because of the training and skills development that was offered to the EPWP beneficiaries and the payment of stipends to EPWP beneficiaries (Health and Vacant land programmes). Each beneficiary was paid a stipend of R 3 500.00 per month • In the year 2022/23 the Department incurred R 27 million on investigation and review on OHS Department of Health projects. The decrease in the audit costs is due to reduced number of investigations conducted in the current financial year. • Increase in fleet service is in line with inflationary adjustment for the year. • Increase in the inventory for the current year is due to protective clothing and uniform bought for the new EPWP beneficiaries that were recruited under Health and Vacant land programmes. • Included in consumables is print cartridge, stationery, cleaning material and building materials. Increase is because of more cleaning materials bought during the year. • Decrease in operating leases is due to some of the lease invoices deferred to the following year due to cash constrains. • An increase in property payments is attributable to annual escalation on security fees and an increase on property maintenance costs. • Less venues were hired due the Department implementing cost containment. • More training was conducted due to more request from branches regarding their job spec training.

191

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT