GPW_AR_2013_Final_v10.pdf

ACCOUNTING OFFICER’S REPORT

Introduction The GPW has reached its landmark 125th birthday this year. Since conversion to a government component in October 2009, it has begun to operate more fully on sound business principles, achieving the objective of full pro ½ tability within a three-year cycle starting on April 2010.The GPW now generates suf ½ cient revenue from services rendered to defray its operational expenditure, and in future will no longer require transfers from National Treasury.The total revenue of GPW is now almost R 1 billion (R 929 million), a 91 percent increase from the R 487 million total revenue of 2009. Operating surplus reached approximately R 110 million (12 percent of revenue), a seven fold increase since the R 15 million surplus of 2009.The annual surplus is ploughed back into funds for asset recapitalisation and renovation of the Visagie Street site. This transition to a government component has entailed radical transformation in terms of : The business processes of GPW; An extensive asset recapitalisation programme to replace outdated equipment; Renovation of premises for GPW at Visagie Street; and Implementation of a new GPW establishment and migration of existing employees to the new model. Mandate and core business The GPW has attained its goal of becoming the “security printer of choice” of government, with more and more departments committing their security printing needs to the GPW, as well as some general printing. A notable win has been the granting of a large contract from the Department of Basic Education in 2012. As a government component, GPW remains within the mandate and full control of the state – its only shareholder. Its core business is the rendering of security printing and related services to government departments, provincial institutions and local authorities, which entails the following: Compiling, editing, printing and distributing of ½ cial Gazettes; The procurement and stocking of departmental forms and face value documents; The production of high security documents and also general printing; and The procurement and distribution of standard stationary items. Transformation The GPW is well on the path to becoming a modern printing company run on solid principles, with an emphasis on security printing. This has entailed the use of a number of technologies in order to harness the internet, as well as information and communication, both in its products and its business processes. In terms of transforming the GPW’s business processes, the organisation’s ERP system was launched on 1 October 2012. This system integrates the functions of ½ nance and production branches using an IT backbone. The ½ nance solution implemented is Microsoft Dynamics A < ; and the production solution Hi ¾ ex; with Biztalk used to integrate both solutions. The ERP solution includes features such as an activity based costing system, which will enable the GPW to dramatically improve the ef ½ ciency of reporting and management in the organisation. Despite its challenges, the transformation is proceeding well and, by 2014, should result in a modern “print and media” company; able to fully satisfy the security printing and related services needs of both the government and the South African people.

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GPW ANNUAL REPORT 2012 | 2013