ATC161027: Budgetary Review and Recommendation Report of the Portfolio Committee on Labour, dated 27 October 2016

Employment and Labour

Budgetary Review and Recommendation Report of the Portfolio Committee on Labour, dated 27 October 2016

 

The Portfolio Committee on Labour, having considered the performance and submission to National Treasury for the medium term period of the Department of Labour, reports as follows:

 

1. Introduction

 

1. Mandate of Committee

 

As part of fiscal accountability, government departments have to table their annual reports before Parliament to account for fiscal expenditure and service delivery performance. The accountability of public officials, the transparency of public decision-making, access to information, and the implementation of enforceable ethical standards and codes all have significant impacts on democratic institutions and poverty reduction strategies. Accountabilityis the pillar of democracy and good governance that compels the state, the private sector, and civil society to focus on results, seek clear objectives, develop effective strategies, and monitor and report on performance. It implies holding individuals and organisations responsible for performance measured as objectively as possible.

 

In view of the above, all parliamentary committees have a mandate to legislate, conduct oversight over the executive and facilitate public participation.

As such, the mandate of the Portfolio Committee on Labour (the Committee) is governed by the strategy of Parliament and the Constitution. The Committee is charged with the responsibility of holding the Executive and related entities accountable through oversight of objectives of its programmes; scrutinising its budget and expenditure; and recommending through Parliament what actions the Department should take in order to attain its strategic goals and contribute to service delivery.

The National Assembly, through its committees, is required by Section 5 of the Money Bills Amendment Procedure and Related Matters Act, No 9 of 2009 (the Act) to annually assess the performance of each national department. These Committees must annually submit Budgetary Review and Recommendation Reports (BRRR) for tabling in the National Assembly. These reports should be submitted to the Minister of Finance and the relevant Ministers.

 

1. Description of core functions of the Department of Labour

 

The core function of the Department of Labour (Department) is to regulate the labour market through policies and programmes developed in consultation with social partners, which are aimed at:

• Improved economic efficiency and productivity;
• Creation of decent employment;
• Promoting labour standards and fundamental rights at work;
• Providing adequate social safety nets to protect vulnerable workers;
• Sound labour relations;
• Eliminating inequality and discrimination in the workplace;
• Enhancing occupational health and safety awareness and compliance in the workplace; and
• Giving value to social dialogue in the formulation of sound and responsive legislation and policies to attain labour market flexibility for competitiveness of enterprises which is balanced with the promotion of decent employment.

 

1. Purpose of the BRR Report

 

The Money Bills Amendment Procedure and Related Matters Act sets out the process that allows Parliament to make recommendations to the Minister of Finance to amend the budget of a national department. In October of each year, portfolio committees must compile BRRR that assess service delivery performance given available resources; evaluate the effective and efficient use and forward allocation of resources; and may make recommendations of forward use of resources. The BRRR are also source documents for the Standing/ Select Committees on Appropriations/ Finance when they make recommendations to the Houses of Parliament on the Medium-Term Budget Policy Statement (MTBPS). The comprehensive review and analysis of the previous financial year’s performance, as well as performance to date, form part of this process.

 

1. Method

 

The Committee in reviewing the work of the Department for the 2015/16 financial year placed emphasis on the following aspects:

• An overview and analysis of the Department’s strategic priorities and measurable objectives;
• An overview of the overall performance of voted funds: Vote 28;
• Consideration of the Auditor-General’s findings in relation to the Department; and
• BRRR recommendations of the previous financial year and whether they were acted upon by the Department.

 

The source documents used by the Committee in compiling the report include the 2015 - 2020 Strategic Plan of the Department, Annual Report, Financial Statements, 2016 Estimates of National Expenditure (ENE), briefings by the Department and its entities during the course of the year, as well as the State of the Nation Address. The Committee also used the Constitution as its basis.

The Committee held meetings with the Department and its entities to receive presentations on their performance against their annual performance plans. It also invited the Auditor General to brief it on its assessment of performance of the Department and its entities.

1. Outline of the contents of the Report.

 

The contents of the Report are as follows:

• Overview of the key relevant policy focus areas;
• Summary of previous key financial and performance recommendations of the Committee;
• Overview and assessment of financial performance;
• Overview and assessment of service delivery performance for 2015/16;
• Service delivery performance for the first quarter of 2016/17;
• Committee observations;
• Recommendations; and
• Appreciation.

 

The sections below expatiate on the contents outlined above.

 

1. Overview of the key relevant policy focus areas

 

In his addresses to the Nation, the President has identified the National Development Plan (NDP) as a blueprint of government strategy towards job creation and improved service delivery.

The economy and employment related priorities of the NDP, include increasing employment through economic growth; reduction of inequality; improvement of skills development and education.

Included in the relevant focus area for the Committee is the reduction of income inequality, which involves an investigation into the national minimum wage. The Committee completed this process through workshops on national minimum wage, which involved experts in this area as well as public hearings held on a national scale to ascertain the views of the public on this subject matter.

Improvement of Unemployment Insurance Fund (UIF) benefits to better the lives of beneficiaries, especially women, is another key focus area relevant to labour. The Unemployment Insurance Amendment Bill was tabled before Parliament and referred to the Portfolio Committee on Labour for processing. The Committee has processed the Bill and it has been referred to the National Council of Provinces.

 

1. Summary of previous key financial and performance recommendations of Committee

 

1. 2015/ 16 BRRR recommendations

 

In the BRRR of the previous financial year, after considering the presentation of the Department and its entities on their annual reports, input from the Auditor General as well as the presentation from the staff of the Appropriations Committee, the Committee recommended that the Minister of Labour takes steps to ensure that:

 

• The Department reports quarterly to the Committee to ensure that the quarterly expenditure improves.

 

• The vacant funded posts, especially the inspector, employment services and client services officer posts, are filled with suitably qualified personnel.

 

• The Department set its performance targets in line with its human and financial resources.

 

• The newly adopted legends be reviewed to accurately reflect the performance of the Department.

 

• The Department urgently address issues raised by the Auditor General, especially under emphasis of matter and predetermined objectives and report back to the Committee before the end of the financial year.

 

• The Department urgently addresses leadership as well as financial and performance management issues in the Compensation Fund and Supported Employment Enterprises and provide quarterly progress report to the Committee.

 

• The Department of Labour and its entities develop procedures so that there are measures implemented for all poor performing individuals and that all transgressions are speedily investigated and resolved and all guilty parties are held accountable for their actions.

 

• The Department tightens financial controls to prevent mismanagement of funds and to introduce tougher measures to deal with financial mismanagement by officials.

 

• Slow response in addressing root causes of poor audit outcomes by management is addressed in the performance contracts between the entity and the employees. The employees are held accountable to their performance contracts.

 

• Management attend training to better equip themselves in understanding the relevant accounting standards that affect the entity.

 

• The Department of Labour should simplify the procedures for accessing the Training Layoff Funds.

 

• The Department urgently resolves the discrepancy with National Treasury and organisations representing the disabled so that people with disabilities receive benefits due to them.

 

• The National Treasury return, in the current financial year, part of the R64 million that was taken away for appointment of inspectors and had already been agreed that it would be returned in 2016/17; so as to allay the plight of vulnerable workers by appointing more labour inspectors.

 

• National Treasury compels government departments to procure a certain percentage of goods from the Supported Employment Enterprises.

 

• The CCMA allocation is increased to employ more commissioners so as to assist in dealing with strikes thus mitigating against job losses.

 

• The Department improves the speed of approving or declining individual or corporate visas.

 

 

Response of the Department:

The Department responded to the above Committee recommendations as follows:

1. The request for quarterly reports to the Committee is noted. In this respect, the Department will ensure that Interim Financial Statements are provided to the Committee on a quarterly basis, as is currently provided to the National Treasury.

 

1. The Department has compiled a project plan to ensure that all funded vacancies are filled by 1 December 2016. The Department has embarked upon a process of ensuring that the necessary attention is given to the filling of posts that have been identified as priorities. In this respect, Inspector, Career Counsellor and Client Service Officers are included.  A strategic decision has also been taken to allow for the specialisation of Client Service Office positions. This is aimed at addressing the shortage of Client Service Officers to address the large volume of demand for services relating to the Unemployment Insurance Fund. Recruitment process to fill vacant and funded Employment Services Practitioner and Career Counsellors posts commenced in July 2016.  The recently amended job profiles assist in ensuring that adverts for inspectors’ posts are able to attract suitably qualified inspectors. The process is further strengthened by ensuring that ably qualified candidates are shortlisted and taken through the recruitment and selection process.

 

1. The Department has, in its review of the Strategic Plan and Annual Performance Plan for 2017/18, revised targets to be in line with the Financial and Human resources that will be available for that particular financial year. The department had a Strategic Workshop session to review the current targets and aligned them with budget and capacity without ignoring the impact of departmental work to society. Implementation of reviewed targets is expected during Semester 2. The Branch PES targets for 2016/17 were reviewed and adjusted accordingly to align with the revised budget and the reduced staff compliment. The planning process took into consideration available resources. The Branch IES went through a painstaking target setting process particularly with regards to 2017/2018 financial year.

 

1. The legends are used as prescribed by the AG. The Department has, however, included the “partially achieved” legend to reflect on work in progress.

 

1. The Department has ensured that the accounting treatment of the Financial Lease for mobile devices is correctly reflected for the 2016/17 financial year. The budgetary allocation for the financial lease has also been reclassified in the 2016 Adjusted Estimates of National Expenditure (AENE) chapter, currently submitted for approval. Action plans has been put in place to address findings and these will be monitored regularly and reported on during DOL Exco meeting.

 

1. The Department has appointed a CFO as from the 01st December 2015. Two Directors were transferred from Compensation Fund to Supported Employment Enterprises (SEE) to assist in HR and Risk Management issues. The Fund has developed an Action Plan that is aimed at addressing financial management, service delivery and people management aspects of the Fund. The Action Plan was presented to the Portfolio Committee and Standing Committee on Public Accounts and progress report is prepared quarterly and submitted to the Minister and to the parliamentary committees.

 

1. Consequential management has been implemented in the Department. The process has started to investigate the transgressions picked up by Auditor General and other related matters with an intention to improve processes and also take corrective steps where necessary.

 

1. Action plans have been put in place to close gaps raised during audits with an intention to improve processes and tighten controls. Internal Audit will also be involved to check on whether the root cause has been addressed by the controls put in place. The Department ensures that sound financial management takes place through a set of core management criteria that form part of individual performance management contracts. Where financial prescripts are transgressed, the Department invokes policies that regulate this behaviour. In terms of the Fund, a Financial Misconduct Committee has been appointed chaired by an independent person. They investigate all cases of financial misconduct and make recommendations to management on appropriate actions to be taken.

 

1. The Department is busy reviewing the Semester Work plan to accommodate inputs from different sources including the portfolio committee; the Auditor General and the National Review Board. The employees are held accountable to their performance contracts.

 

1. The Department exposes staff to various training opportunities in line with their personnel development plans and business needs. This is done as extensively as possible within the available resources.

 

1. The process has started to integrate work done by Labour Activation Programme and Public Employment Services (PES) which includes review the Training Layoff Schemes to make it more effective and efficient. The DG has approved new Terms of Reference for Training Layoff Scheme during August 2016 and also appointed a new Project Adjudication Committee (PAC) chaired by DDG: PES. The PAC was also tasked to make recommendations on proposed adjustments to the scheme approved in 2008 by end of November 2016.

 

1. National Treasury approved the extension of allocations to existing 3 National Disability Councils and 6 Workshops for the Deaf and Blind to end of March 2018.The Director-General concluded 3 year agreements with all Councils and Workshops. Transfers are being effected on a monthly basis based on monitoring reports. A new People with Disability subsidy policy to come into operation as from 01st April 2018 is being finalized with Treasury, Department of Social Development and Disability organisations involvement.

 

1. Despite supporting the recommendation of the Committee, the adjustment of the Department’s allocation is beyond the control of the Department. The Committee’s recommendation will be shared with the relevant officials at the National Treasury. As soon as the money is availed, it will be utilised accordingly.
    
2. The Committee’s recommendation will be shared with the Chief Procurement Officer at the National Treasury, for the possible issue of an Instruction/Practice Note in this regard. National Treasury increased subsidy allocation to SEE. National Treasury approved that SEE be paid 50% upfront deposit by Departments. Department of Labour conducted open day sessions to advertise its services and products to other government departments. The IES branch has recently procured furniture from SEE.

 

1. The Department together with the CCMA has submitted a funding request to Treasury to increase the capacity of the CCMA but also to deal with the regularisation of the interpreters. In this current economic climate this request has not been favourably met although Treasury has indicated that they would consider the regularisation of the interpreters since it is a result of a court order.  The final word on this matter will be seen in the adjusted budget for the Department.

 

1. Only complete applications as per check-list are accepted as from 01st April 2016. Inspection and alternative local skills search timeframes have been adjusted to not more than 20 working days at Labour Centre levels, 5 working days Provincial Office verification and 5 working days Head Office adjudication and recommendation to Department of Home Affairs. The rate of responding to requests for inspections for this purpose has increased dramatically. We are now able to inspect over 80 per cent of such requests. In the past we were able to inspect just over 40 per cent on average.

 

1. 2016/17 Committee Budget Report

 

After receiving the presentation of the Department of Labour and its entities, the Committee recommended that the Minister of Labour gives consideration to:

• Capacitating the Labour Centres so as to improve service delivery to the clients of the DoL in line with the decentralisation of services.
• Devising a plan to improve the processing of work VISA applications so as to facilitate the acquisition of scarce skills.
• Facilitating the speedy transfer of funds to the organisations for people with disabilities such as the South African Society for the Blind.
• Increasing the capacity of the IES so as to strengthen the decent work agenda programme in South Africa.

• Briefing the PC on Labour on progress with regard to the implementation of the Action Plan of the Compensation Fund by November 2016.
• Reporting back to the Committee on progress regarding appointment of special officers to attend to UIF claimants rather than using Client Services Officers (CSOs).
• Reporting back to the Committee on progress regarding the conclusion of the Memorandum of Understanding with the Department of Small Business on how UIF can assist in the training of small businesses.
• Reporting back on progress regarding the stabilising of the IT systems at labour centres.
• Briefing the Committee with regard to the developments on the establishment of forensic services within the CCMA internal audit.
• Briefing the Committee regarding the outcome of the pilot study on Workplace Mediation Model conducted by the CCMA within the fruit sector in the Western Cape.
• Insourcing auxiliary services that are of a permanent nature such as cleaning services.
• Ensuring that Productivity SA is appropriately capitalised to be able to extend its services to areas where they are currently not operating and to ensure the entity is rendered more visible.

1. Overview and assessment of financial performance

 

1. Overview of Vote allocation and spending (2012/13 to 2017/18)

 

Table 1

Programme R million	2012/13	2013/14	2014/15	2015/16			2016/17	2017/18
	Audited	Audited	Audited	Main Appropriation	Final Appropriation	Actual Expenditure	Main	Estimates
Administration	687.7	795.9	676.0	815 111	814 047	745 637	852.9	895.0
Inspection and Enforcement Services	395.6	412.2	430.9	471 830	472 894	472 894	519.5	529.8
Public Employment Services	331.7	413.5	465.3	497 297	497 297	485 099	510.3	571.9
Labour Policy and Industrial Relation	619.7	749.9	847.8	919 996	919 996	908 365	965.2	1 035.3
Total	2 034.6	2 371.4	2 419.9	2 704 234	2 704 234	2 611 995	2 847.9	3 032.0

Source: National Treasury (2016), Estimates of National Expenditure and Department of Labour (2016), Annual Report

 

The actual expenditure in the 2014/15 financial year was R2.419 billion. The main appropriation for 2015/16 was R2 704 billion. This translates to an increase of R284 million or 1.17 per cent from the actual expenditure of 2014/15 financial year. The total revenue becomes R2 714 billion when the Departmental receipts of R10 056 million is added.

 

1. Financial performance 2015/16

 

The final appropriation for the Department was R2 704 billion in 2015/16 financial year. In terms of economic classification, current payments received R1 606 billion, which was the largest allocation. It was followed by transfers and subsidies, which received R1 014 billion. Payments for capital assets and payments for financial assets received R83 212 million and R460 000 respectively. The larger portion of the appropriation for current payments was for compensation of employees at R1 039 billion or 65 per cent. Goods and services received R566 917 million or 35 per cent of the appropriation for current of payments.

 

The actual expenditure for current payments was R1 533 billion or 95.4 per cent of the appropriation. Compensation of employees spent R1 025 billion or 98.7 per cent of its budget. Goods and services spent R507 401 million or 89.5 per cent of its budget. The total appropriation for transfers and subsidies was spent. Capital of payments spent 81.8 per cent of its budget. The whole budget appropriated for payments of financial assets was spent.

 

Programme 1: Administration

The programme consists of the Ministry, Management, Corporate Services, Office of the Chief Financial Officer and Office Administration sub-programmes. The Ministry provides political oversight to ensure that the Department’s mandate is achieved. Management consists of the Office of the Director-General and the Office of the Chief Operations Officer. The Office of the Director-General provides administrative oversight for effective implementation of the Department’s mandate and overall accounting oversight. The Office of the Chief Operations Officer manages and directs medium-term strategic planning processes, performance information reporting, monitoring and evaluation of performance against plans and the service delivery improvement plan. Corporate Services consists of Human Resource Management, Internal Audit, Risk Management, Security Services, Communication, Legal Services and the Office of the Chief Information Officer. The Office of the Chief Financial Officer renders effective and efficient financial management and administrative support for the Department.

 

The Administration programme was allocated R814 million or 30 per cent of the departmental budget. This is the second largest allocation of the departmental budget after Labour Policy and Industrial Relations sub-programme. It spent R745.6 million or 91.6 per cent of the allocation. The largest allocation of the programme went to Management sub-programme. It received R402 million or 49 per cent of the programme budget. The sub-programme spent R375 million or 93.3 per cent of the allocation. It was followed by the Office Accommodation sub-programme. The sub-programme spent R161 million of the R175 million that was allocated. This translates to 91.6 per cent of the sub-programme appropriation spent.

 

In terms of economic classification, R760.7 million or 93.4 per cent of the programme budget was allocated to Current Payments. Of this amount, R707.3 million or 93 per cent was spent. The total of R325.9 million of the allocated R331.2 million was spent on the Compensation of Employees. This translates to 98.4 per cent of the allocated budget for Compensation of Employees spent.

 

Programme 2: Inspection and Enforcement Services

The programme consists of Management and Support Services; Occupational Health and Safety; Registration; Compliance, Monitoring and Enforcement; Training of Staff; and Statutory and Advocacy Services sub-programmes. Management and Support Services provides corporate support to the line function sub-programmes within the Inspection and Enforcement Services programme. Occupational Health and Safety promotes health and safety in the workplace by regulating dangerous activities and the use of plant and machinery. Registration registers incidents relating to labour relations and occupational health and safety matters, as reported by members of the public and communicates these to the relevant structures within the Compliance, Monitoring and Enforcement sub-programme for investigation. Compliance, Monitoring and Enforcement ensures that employers and employees comply with labour legislation through regular inspections and following up on reported incidents. As the name suggests, Training of staff is responsible for staff training within the programme. Statutory and Advocacy gives effect to the legislative enforcement requirement and educate stakeholders on labour legislation.

 

The Inspection and Enforcement Services sub-programme was allocated R472.8 million or 17.5 per cent of the departmental budget. It receives the least allocation of the departmental budget. The largest share of the programme budget is allocated to Compliance, Monitoring and Enforcement. This sub-programme received R373.0 million or 78.8 per cent of the programme budget. This is the only departmental programme that spent 100 per cent of its budget.

 

In terms of Economic Classification, R439.7 million or 93.0 per cent of the programme budget was spent on Current Payments. Of this amount, R375.8 million or 85.4 per cent of Current Payments budget was spent on Compensation of Employees.

 

Programme 3: Public Employment Services

The programme consists of Management and Support Services, Employer Services, Work-Seeker Services, Designated Groups Special Services, Supported Employment Enterprises, Productivity South Africa, Unemployment Insurance Fund, Compensation Fund and Training of Staff. Management and Support Services provides corporate support to line function sub-programmes. Employer Services facilitates registration of vacancies and disseminate scarce skills information, issues immigrant corporate and work permits, records migrant skilled South Africans, oversees placements, responds to companies in distress, provides social plan and regulates private employment agencies. Work-Seeker Services registers work-seekers, retrenched workers, work vacancies, training and income generating opportunities on the employment services system and facilitate access to employment and income generating opportunities for the unemployed and under-employed. Designated Group Special Services facilitates the transfer of subsidies to national councils to promote the employment of people with disabilities, youth and women, in collaboration with Supported Employment Enterprises and other relevant bodies.

 

The programme has oversight over the Productivity South Africa, Unemployment Insurance Fund, Compensation Fund and Supported Employment Enterprises.

 

This programme was appropriated R497.2 million or 18.3 per cent of the departmental budget. It spent R485.0 million or 97.5 per cent of the allocation. The Supported Employment Enterprises received R140.7 million or 28.2 per cent of the programme budget. Productivity South Africa and Compensation Fund received R45.5 million and R18.0 million respectively. The Unemployment Insurance Fund finance its operations from self-generated funds. Employer Services sub-programme spent R120.0 million or 98.0 per cent of the allocated R122.5 million. The Work Seeker Services sub-programme spent R116.0 million or 97.1 per cent of the R119.4 million allocated.

 

In terms of Economic Classification, R285.8 million or 57.4 per cent of the programme budget was appropriated for Current Payments. Of this amount R277.5 million or 97.1 per cent was spent. The total of R251.8 million or 88.0 per cent of Current Payments budget was allocated to Compensation of Employees. The actual expenditure on Compensation of Employees amounted to R245.7 million or 97.6 per cent. Transfers and Subsidies received R211.1 million or 42.4 of the budget in terms of Economic Classification. It spent R207.3 million or 98.2 per cent of the allocation.

 

Programme 4: Labour Policy and Industrial Relations

This programme is composed of ten sub programmes, which are Management and Support Services; Strengthen Civil Society; Collective Bargaining; Employment Equity; Employment Standards; Commission for Conciliation, Mediation and Arbitration; Research, Policy and Planning; Labour Market Information and Statistics; International Labour Matters; and National Economic Development and Labour Council.

 

This programme received the largest portion of the departmental budget. It was allocated R919.9 million or 34.0 per cent of the budget of the Department. It spent R908.3 million or 98.7 per cent of the programme allocation. The CCMA received the largest share of the allocation. It received R731.7 million or 79.5 per cent of the programme budget. The NEDLAC received R29.0 million and spent R28.7 million or 99.3 per cent of the allocated budget. Labour Market and Information Statistics sub-programme received R38.7 million and spent R35.8 million or 92.5 per cent of the allocation. International Labour Matters sub-programme received R37.0 million and spent R36.4 million or 98.4 per cent of the allocated budget.

 

In terms of Economic Classification, Transfers and Subsidies received the largest share. The allocation for Transfers and Subsidies amounted to R799.5 million or 86.9 per cent of the programme budget. This was followed by Current Payments, which was allocated R119.9 million and spent R108.3 million or 90.3 per cent of the allocation. The larger portion of Current Payments budget went to Compensation of Employees. Compensation of Employees received R80.5 million and spent R78.0 million or 97.0 per cent of the budget.

 

Report of the Auditor-General

 

The Department received an unqualified audit opinion for the 2015/16 financial year.

 

AGSA reported on the usefulness and reliability of the reported performance information of Programmes 2, 3 and 4 as follows:

 

Programme 2: Inspection and Enforcement Services

• AGSA reported that it was unable to obtain sufficient appropriate audit evidence to support the reasons provided for the variance between planned targets and actual achievements.
• A total of 44 per cent of significantly important targets were reported to be not specific as required by the Framework for Managing Programme Performance Information (FMPPI). This is an increase of eight per cent from the 36 per cent of significantly important targets that were found to be not specific in 2014/15 financial year.
• AGSA reported that a total of 44 per cent of the significantly important targets were not measurable as required by the FMPPI. This is an improvement from the 57 per cent of the targets that were reportedly not measurable in the previous financial year.
• AGSA reported that a total of 44 per cent of significantly important indicators were not well defined as required by the FMPPI. This is more than double the number (21 per cent) of the significantly important indicators that were reported to be not well defined in 2014/15 financial year.
• A total of 38 per cent of the significantly important indicators were reported to be not verifiable in accordance with the FMPPI. This is an improvement from the 50 per cent of the significantly important indicators that were reported to be not verifiable in 2014/15 financial year.
• The deviations were reported to be as a result of management not adhering to the requirements of the FMPPI due to a lack of proper systems and processes and inadequate technical indicator descriptions.
• There was no reported adverse finding with regard to time boundedness of the targets. This is an improvement from the 21 per cent of the targets that were not time bound in the previous financial year.
• AGSA reported that the Department could not provide sufficient appropriate evidence in support of the reported performance information.

 

Programme 3: Public Employment Services

• AGSA found that the reported achievements against planned targets of 22 per cent indicators were not reliable when compared to the evidence provided as required by the FMPPI.

 

Programme 4: Labour Policy and Industrial Relations

• AGSA was reportedly unable to obtain sufficient appropriate audit evidence to support the reasons provided for the variance between planned targets and actual achievements.
• A total of 23 per cent of the objectives, indicators and targets were found to be inconsistent with those in the approved annual performance plan.

• AGSA reported that a total of 23 per cent of the targets were not specific in clearly identifying the nature and required level of performance as required by the FMPPI. This is an improvement from the 47 per cent of significantly important targets that were reportedly not specific in the previous financial year.
• A total of 31 per cent of significantly important targets were reported to be not measurable as required by the FMPPI. This is an improvement from the 47 per cent of significantly important targets that were reported to be not measurable in the previous financial year.
• A total of 29 per cent of the indicators were found to be not well defined by having clear definitions so that data can be collected consistently and is easy to understand and use as required by the FMPPI. This is an improvement from the 43 per cent of significantly important indicators that were reported to be not well defined in the previous financial year.

• AGSA found that a total of 29 per cent of the processes and systems that produced the indicators were not verifiable. The previous year report also found 29 per cent of the significantly important indicators to be not verifiable.

• AGSA found that the reported achievements against planned targets of 15 per cent of the indicators were not reliable when compared to the evidence provided.

 

On expenditure management, AGSA reported that the Accounting Officer did not take effective and appropriate steps to prevent irregular and fruitless and wasteful expenditure as required by section 38(1)(c) (ii) of the PFMA.

 

AGSA found that the Department did not hold personnel accountable for shortcomings identified during the internal and external audit processes.

 

Irregular expenditure

The irregular expenditure of the Department for the year under review was reported to be R25.3 million. This is an increase of R17.1 million from R8.1 million reported in the previous financial year.

 

The irregular expenditure of entities for the year under review was reported as follows:

 

	Irregular expenditure
	R6 596 million	R414 099 million
	R1 041 million	R2 815 million
	R43 895 million	R20 710 million
	R4 007 million	R4 255 million
	R2 782 million	R4 283 million
	R58 321 million	R446 072 million

 

The irregular expenditure of entities decreased from R446 million in 2014/15 financial year to R58 million in 2015/16 financial year.

 

 

Fruitless and wasteful expenditure

The fruitless and wasteful expenditure for the year under review was reported to be R34 000. This reflects a decrease of R27 000 from the R61 000 reported in the previous financial year.

 

Statement of Financial Performance for the year ended 31 March 2016

The total revenue of the Department was R2.714 billion in 2015/16 financial year, translating to R156.8 million or 6.1 per cent increase from R2.557 billion allocation in 2014/15 financial year. A total of R2.704 billion was the appropriation from National Treasury comprising 99.63 per cent of the total revenue. This constitutes an increase of R157.9 million or 1.0 per cent from the allocation of 2014/15 financial year. The departmental revenue was R10.056 million comprising 0.37 per cent of the total revenue for 2015/16 financial year. The departmental revenue decreased by R1.09 million or 9.85 per cent from the R11.155 million in 2014/15 financial year.

 

The total expenditure of the Department amounted to R2.611 billion. This reflects an increase of R195.0 million or 8.07 per cent from the R2.416 million spent in 2014/15 financial year. The larger portion of expenditure was on total current assets at 58.69 per cent of total expenditure. It amounted to R1.533 billion, which is an increase of R75.04 million or 5.15 per cent from R1. 457 billion in 2014/15 financial year. Compensation of employees was R1.025 billion or 66.90 per cent of the total current expenditure. The remainder was comprised of expenditure on Goods and Services at R507.4 million or 33.10 per cent of total current expenditure. Expenditure on Goods and Services increased by R47.1 million or 10.25 per cent from R460.2 million in 2014/15 to R507.4 million in 2015/16 financial year. Expenditure items under Goods and Services include expenditure on consultants at R7.178 million, expenditure on outsourced services at R3.111 million and expenditure on travel and subsistence at R78. 097 million in the 2015/16 financial year. The expenditure on travel and subsistence is the second largest expenditure item under Goods and services after operating leases, which was R139.4 million in the 2015/16 financial year. The expenditure on travel and subsistence increased by R5 062 million or 6.93 per cent.

 

The second largest portion of expenditure was Transfers and subsidies at R1.010 billion or 38.68 per cent of the total expenditure. This reflects an increase of R85.8 million or 9.28 per cent from the R924.6 million spent in 2014/15 financial year.

 

The expenditure on Capital assets amounted to R68.101 million or 2.66 per cent of the total expenditure. This reflects an increase of R31.3 million or 86.78 per cent from the R36.4 million spent in 2014/15 financial year.

 

Payment on financial assets decreased by R435 000 or 48.6 per cent to R460 000 from R895 000 spent in 2014/14 financial year.

 

The Department registered a surplus of R102.2 million, which is a decrease from the R137.5 million in 2014/15 financial year.

 

Statement of financial position as at 31 March 2016

The total assets of the Department amounted to R106.6 million in 2015/16 financial year, which is a decrease of R73.050 million or 40.64 per cent from the R179.7 million assets in 2014/15. The current assets constituted R84.403 million or 79.11 per cent of the total assets. However, current assets decreased by R63.33 million or 42.87 per cent from R147.7 million in 2014/15 financial year. Receivables constituted the larger portion of current assets at R61.9 million or 73.37 per cent of the current assets. However, receivables decreased by R20.6 million or 25.02 per cent in 2015/16 from the R82.5 million in 2014/15 financial year. Items under receivables include Claims recoverable at R71.6 million, Staff debt at R7.9 million and Recoverable expenditure at R4.5 million as at 31 March 2015/16. Prepayment and advances registered a decrease of R6.8 million or 34.86 per cent from R19.527 million in 2014/15 to R12.720 million in 2015/16 financial year. Cash and cash equivalents registered the largest decrease of R35.85 million or 78.61 per cent from R45.613 million in 2014/15 to R9.755 million in 2015/16 financial year.

 

The non-current assets registered a decrease of R9.717 million or 30.36 per cent from R32. 003 million in 2014/15 to R22.286 million in 2015/16 financial year.

 

The Total liabilities amounted to R101.308 million, which is a decrease of R72.875 million or 41.84 per cent from the R174.183 million reflected in 2014/15 financial year. The largest portion of current liabilities was the Voted funds that were to be surrendered to the Revenue Fund. This item was R92.239 million or 91.05 per cent of the current liabilities. However, this item decreased by R34.117 million or 27 per cent from R126.356 million reported in the 2014/15 financial year. There were no Non-current liabilities reported as at 31 March 2016.

 

The Department registered the Net-assets of R5.381 million, which is a decrease of R38 000 or 0.70 per cent from the R5.419 registered in 2014/15 financial year.

 

1. Financial performance for the first quarter of 2016/17 financial year

The Department received an appropriation of R2.8 billion in 2016/17 financial year. By the end of June 2016, it had spent R769.9 million or 26.9 per cent of the total budget for the financial year. The Department had projected to spend R888.4 million or 31.2 per cent of the total budget. Slow spending was reported to be mainly on compensation of employees due to vacant posts, goods and services due to delayed ordering of computers from SITA and reduced transfers to the Compensation Fund.

 

In terms of Economic Classification, the Department spent R343.6 million or 20 per cent of the R1.7 billion allocated for current payments by the end of June 2016. It had projected spending R415.3 million. The bulk of Current payments was spent on Compensation of Employees, which amounted to R259.1 million or 22.9 per cent of the allocated R1.132 billion. The Department had projected spending R280.1million of the budget by the end of June 2016.

 

By the end of June 2016, the Department had spent R416.0 million or 39.1 per cent of the R1.064 billion allocated for Transfers and Subsidies. It had projected to spend R470.9 million. The Department spent R6.3 million or 9.1 per cent of the R68.4 million allocated for Payments of Capital Assets.

 

Expenditure per programme

 

•  

Operational expenditure in this programme is driven by Compensation of Employees which contributes 55.9 per cent of the programme’s operational cost as it provides provincial office staff. Goods and Services constitutes the remaining 44.1 per cent and includes allocations for accommodation leases, cleaning services, municipal services (water, electricity etc.) and audit costs. Variances higher than the projected expenditure on Legal Services is reported to be due to payment only being made upon finalisation of litigation cases that took place in the previous years, but finalised and paid for in the first quarter of 2016/17. The Department pays these claims as and when they are finalised. Slow spending on computer services under the Administration programme is reported to be due to delays in placing and receiving orders from SITA.

 

Inspection and Enforcement Services

This programme spent more than the projected expenditure on Compensation of Employees due to salary and medical aid adjustments in compliance with Public Service Co-ordinating Bargaining Council (PSCBC) Resolution 8 of 2015. Expenditure on goods and services i.e. travel and subsistence and fleet services is low when compared to the drawings reportedly due to vacant labour inspector posts.

 

Public Employment Services

The spending of this programme is in line with the drawings. However, the Department spent less than projected on transfers to the Compensation Fund for civil servants injury on duty claims which are based on invoices received by the Department.

 

Labour Policy and Industrial Relations

The programme spent more than projected mainly in the International Labour Matters sub-programme due to late foreign payments as a result of delays by DIRCO in providing payment invoices and the volatile rand. In addition, variance is also attributed to the appointment of a new Labour Attaché; and the resettlement costs for the previous Attaché (e.g. shipment and storage of Assets and property leases). The costs associated with the new Attaché are higher due to the Attaché having a family including children. The schooling costs and higher leasing costs contributed to a negative variance on operating leases and operating payments.

 

First quarter expenditure of 2016/17 financial year by the entities of the Department

 

Compensation Fund (CF)

The CF was allocated R19.0 million for administration of civil servants’ claims in the 2016/17 financial year. It spent R2.6 million or 13.4 per cent of the allocated budget against a projection of R4.2 million resulting in a variance of R1.6 million or 38.5 per cent of projected expenditure by June 2016.

 

Productivity South Africa (PSA)

The Productivity South Africa (PSA) was allocated R47.9 million for its operations in the 2016 financial year. By the end of June 2017, PSA had spent R16.0 million or 33.3 per cent of its total budget in line with the projected expenditure.

 

The Unemployment Insurance Fund (UIF)

The UIF is self-sufficient and therefore does not receive budget transfers for its operations.

 

Commission for Conciliation, Mediation and Arbitration (CCMA)

The CCMA was allocated R770 million for its operations in the 2016/17 financial year. By the end of June 2016, it had spent R339.3 million or 44.0 per cent of the total budget for its operations. This is in line with the projected expenditure.

 

National Economic Development and Labour Council (NEDLAC)

NEDLAC was allocated R30.3 million for its operations in the 2016/17 financial year. By the end of June 2016, it had spent R15.2 million or 50.0 per cent of its budget for operations.  This is in line with the projected expenditure.

 

1. Overview and assessment of service delivery performance for 2015/16

 

The performance of the Department was divided into three performance categories, namely:

• Performance on Estimates of National Expenditure (ENE) performance indicators.
• Performance per strategic goals.
• Performance per programme.

 

1. Performance on ENE performance indicator

 

The performance on ENE performance indicators was reported as follows:

 

Table 2

ENE PERFORMANCE INDICATORS	OVERALL ACHIEVEMENTS
Number of workplaces inspected and reviewed per year to determine compliance with various labour legislation.	186 871
Number of complaints resolved within 14 days at registration services per year.	-
Number of work-seekers registered on the Employment Services of South Africa (ESSA) system per year.	634 503
Number of work-seekers registered on the system provided with employment counselling per year.	208 989
Number of work-seekers placed in registered employment opportunities per year	10 927
Number of pay scales assessed per year to reduce gaps in minimum wage determinations.	4

Source: Department of Labour (2016), Annual Report 2015/16

 

Table 2 reflects that only 10 927 work-seekers or 1.72 per cent were place in registered employment opportunities as at 30 March 2016 out of 634 503 work-seekers registered on ESSA. It is not clear why there is no record of the number of complaints resolved within 14 days at registration services per year.

 

1. Performance per strategic goal

 

The performance per strategic goal was reported as follows:

 

Table 3

STRATEGIC GOALS	ACTUAL OUTPUT VALIDATED
	Performance indicators	Achieved		Not Achieved		Overall Achievement
Promote occupational health services	This strategic goal was covered in terms of indicators that are applicable in strengthening occupational safety protection.
Contribute to decent employment creation	9		4		5		44%
Protect vulnerable workers	7		3		4		43%
Strengthen multilateral and bilateral relations	1		1		0		100%
Strengthen occupational safety protection	6		4		2		67%
Promote sound labour relations	2		0		2		0%
Monitor the impact of legislation	1		0		1		0%
Strengthen the institutional capacity of the Department	18		8		10		44%
Development of the occupational health and safety policies	This strategic goal is covered in terms of indicators that are applicable in strengthening occupational safety protection.
Promote equity in the labour market	6		5		1		83%
Total	50		25		25
Overall performance			50%		50%

Source: Department of Labour (2016), Annual Report 2015/16

 

Table 3 reflects that the Department did not achieve half of its goals translating to 50 per cent overall performance. It achieved 44 and 43 per cent in contribution to decent employment and protection of vulnerable workers, respectively. It must be noted that these are the main reasons for the existence of the Department of Labour. In the 2014/15 financial year, the Department achieved 44 and 17 percent in the contribution to decent employment creation and protection of vulnerable workers, respectively.

 

1. Performance per programme

 

The performance per programme was reported as follows:

 

Table 4

PROGRAMME	Planned indicators	Achieved	Not achieved	Overall achievement
Administration	18	8	10	44%
IES	16	10	6	63%
PES	9	4	5	44%
LP & IR	7	3	4	43%
Overall performance	50	25	25
Performance %		50%	50%

Source: Department of Labour (2016), Annual Report 2015/16

 

Programme 1: Administration

 

Table 4 reflects that the Administration programme achieved 44 per cent of its planned targets. Some of the targets that were not met include:

 

• Instead of 55 per cent of total Department’s M-PAT standards per KPI to be at level 3 and 4 by 31 March 2016, only 37 percent were at level 3 and 4.
• Instead of 4 monitoring reports on SDIP produced within 30 days after end of the financial year, the SDIP quarter 4 was approved on 16 May 2016.
• Instead of 95 per cent of cases received or detected finalised per year within 90 working days, only 42 per cent were finalised within 90 working days.
• Communication strategy and annual action plan were not approved as planned.
• The integrated human resource strategy was not implemented by 31 March 2016 as planned.
• Instead of the reduction of the vacancy rate to eight per cent, it was at 12.4 per cent by 30 March 2016.
• The target of resolving all disciplinary cases in 90 working days was not achieved. Only 76 per cent of misconduct cases were resolved in 90 working days.
• All the ICT related targets were not achieved.
• Only 99 .54 per cent of compliant invoices were paid within 30 days of receipt against a target of 100 per cent.

 

Programme 2: Inspection and Enforcement

 

The Inspection and Enforcement Services (IES) achieved 63 per cent of its set targets.

 

Among the targets that were not achieve are:

• Only 86 per cent non-compliant employers of those reviewed were issued with recommendations within 90 days of the review.
• Only 97 instead of 100 per cent of non-complying workplaces were dealt with. A total of 29 015 notices were issued and 217 cases were referred to court.
• The target on advocacy and educational sessions conducted per year in identified sectors was not met.
• Only 63 instead of 90 per cent requested investigations were conducted within five working days.
• Instead of 100 per cent of non-complying workplaces inspected per year dealt with in terms of the OHS legislation, only 99.7 per cent were dealt with.
• Only 72 per cent of applications for registration of entities were processed within four weeks against a target of 100 per cent.

 

Programme 3: Public Employment Services

Table 4 reflects that Public Employment Services (PES) achieved 44 per cent of its targets.

 

The targets that were not achieved include:

• The programme did not meet the target of the Minister publishing three final regulations in the Government Gazette in terms of the Employment Services Act by 30 March 2016. The three final regulations were not yet published when the annual report was tabled. The reason for the deviation was reported to be delays in the establishment of the Employment Services Board.
• The PES managed to provide 208 861 work-seekers with employment counselling against a target of 250 000. The under-achievement was reported to be due to insufficient staff resources and IT system challenges.
• Only 10 927 work-seekers were placed in registered employment opportunities against a target of 25 000.
• Only 281 applications by Private Employment Agencies and Temporary Employment Services were processed and finalised within 60 days. A total of 116 were processed beyond the 60 days. This was against a target of processing and finalising all applications within 60 days. The deviation was reported to be due to staff capacity challenges and irregular adjudication meetings of applications.
• A total of 34 corporate applications were processed within 30 days and 57 beyond 30 days. This was against a target of processing all complete applications for foreign nationals corporate and individual work visa within 30 days. Of the individual applications, 314 were finalised within 30 days and 1 252 were finalised beyond 30 days. In both cases the deviation was reported to be due to changes introduced in the immigration Regulations that became effective from 26 May 2014 and insufficient staff to deal with increased volumes of applications as well as IT system challenges.

 

Programme 4: Labour Policy and Industrial Relations

Table 4 reflects that programme four achieved 43 per cent of its target by the end of March 2016.

 

Some of the targets that were not met include:

• Application for variation on the Basic Conditions of Employment Act (BCEA) processed within 60 days by March 2016. Instead, 75 per cent applications were processed and variation granted within 60 days.
• Extending 18 collective agreements to non-parties within 60 days of receipt. Of the 32 collective agreements extended to non-parties for the reporting period, only one was extended within 60 days of receipt.
• Processing all competent and completed labour organisation applications within 90 days of receipt. Only 97 per cent of labour organisation applications processed within 90 days of receipt.

 

1. SERVICE DELIVERY PERFORMANCE FOR 2016/17 FIRST QUARTER

 

This section is based on the presentation by the Department to the Committee on its first quarter performance.

 

In terms of strategic objectives, the Department reported that it has achieved 21 out of 34 indicators (with targets reporting in quarter one) as at end of June 2016, translating to 62 per cent achievement.

 

The overall performance on its strategic objectives was as follows:

 

1. Performance per strategic objective

 

The performance per strategic objective for the first quarter of 2016/17 was reported as follows:

 

Table 5

Strategic Objectives	Annual Planned Indicators	Indicators reporting in Q1	Achieved	Partially Achieved	Not Achieved	Overall Achieve-ment
Contribute to employment creation	8	8	5	0	3	63%
Promote equity in the labour market	5	5	3	1	1	60%
Protecting vulnerable workers	6	6	3	1	2	50%
Strengthen multilateral and bilateral relations	1
Strengthen occupational safety protection	6	6	4	2	0	67%
Promoting sound labour relations	2	2	0	1	1	0%
Monitoring the impact of legislation	2	2	2		0	100%
Strengthening the institutional capacity of DoL	5	5	4	1	01	80%
Total number of indicators	35	34	21	6	7	62%
Overall performance			62%	18%	21%

Source: Department of Labour (2016): Presentation to the Portfolio Committee on Labour, 10 September.

 

Table 5 reflects an overall achievement of 62 per cent in performance per strategic objective. This is an improvement from the 47 per cent achieved in the first quarter of 2015/16 financial year. Improvement in performance was recorded in the following strategic objectives:

• Contribute to employment creation improved from 44 per cent in the first quarter of 2015/16 to 63 per cent in the first quarter of 2016/17.
• Promote equity in the labour market improved from 50 per cent in 2015/16 to 60 per cent in 2016/17.
• Strengthen occupational safety protection improved from 60 per cent in 2015/16 to 67 per cent in 2016/17.
• Strengthen the institutional capacity of the Department improved from 35 per cent in 2015/16 to 80 per cent in 2016/17.

 

The following strategic objectives recorded worse performance in the first quarter of 2016/17 compared to the first quarter of 2015/16:

• Protecting vulnerable workers achieved 57 per cent in the first quarter of 2015/16 and 50 per cent in the first quarter of 2016/17.
• Promoting sound labour relations achieved 50 per cent in 2015/16 and 0 per cent in 2016/17.

 

The Department reported its performance per programme for the first quarter of 2016/17 as follows:

 

1. Performance per programme

 

Table 6

Branch	Annual planned indicators	Indicators with target reporting in Q1	Achieved	Partially Achieved	Not achieved	Overall achieve-ment
Administration	5	5	4	1	0	80%
Inspection and Enforcement Services	15	15	9	4	2	60%
Public Employment Services	8	8	5	0	3	63%
Labour Policy and Industrial Relations	7	6	3	1	2	50%
Total number of indicators	35	34	21	6	7	62%

Source: Department of Labour (2016) Presentation to the Portfolio Committee on Labour, 10 September.

 

The Department reported its overall performance during the first quarter of 2016/17 to be 62 per cent. The following programmes recorded improvements in the first quarter of 2016/17 compared to the first quarter of 2015/16:

• The Administration programme improved from 35 percent in 2015/16 to 80 per cent in 2016/17. However, it is worth noting that the planned indicators were reduced from 18 in 2015/16 to 5 in 2016/17.
• Inspection and enforcement services improved from 47 per cent in 2015/16 to 60 per cent in 2016/17.
• Public employment services improved from 44 per cent in 2015/16 to 63 per cent in 2016/17.

 

The Labour Policy and Industrial Relations programme’s performance went down in the first quarter of 2016/17 than in the first quarter of 2015/16. In 2015/16 it achieved 83 per cent and in 2016/17 it achieved 50 per cent.

 

1. Other service delivery performance findings

 

Some of the service delivery challenges identified by committee members during oversight visits include:

 

• Shortage of staff, especially labour inspectors in Labour Centres.
• Shortage of tools of trade for labour inspectors, which makes it difficult for them to execute their duties.

 

1. Concluding comments on service delivery performance

 

There is a lot of room for improvement in terms of service delivery. The Committee members identified constraints in terms of staffing and tools of trade at service delivery points during oversight visits.

 

1. COMMITTEE Observations

 

1. Technical issues

 

The Department and all entities tabled their reports as per requirements. There were no technical errors identified in the reports. The information in the reports was found to be of required quality and there were no complaints of inaccessibility of any kind.

 

1. Governance and operational issues

 

The Committee has noted the measures taken to enhance the performance of the Department in terms of governance and operational issues. These include the appointment of suitably qualified personnel in strategic positions, e.g. the appointment of the new Commissioner of the Compensation Fund. 

 

1. Service delivery performance

 

The Committee has noted the improvement in the overall achievement from 47 to 62 per cent.

 

1. Financial performance including funding proposals

 

The Committee commends the Department for once again receiving an unqualified audit opinion. However, the Committee would like to encourage the Department to address the issues raised by the AGSA under matters of emphasis.

 

1. Recommendations

 

After considering the presentation of the Department on its annual report and the input from the Auditor General, the Committee recommends that the Minister of Labour takes steps to ensure that:

 

• The performance information provided to the Portfolio Committee on Labour on a quarterly basis has been verified by Internal Audit and Audit Committee for credibility and completeness.
• In setting performance targets in Annual Performance Plans, the Department and its entities incorporate assessment of impact of its activities.
• The Department urgently addresses issues raised by the Auditor General and report back to the Committee on the action plans to address the issues.
• The Department and its entities implement effective human resource management processes to ensure that key management vacancies are filled with appropriately skilled and qualified personnel. This will enable the Department and its entities to develop a strong and effective control environment and workforce.
• All transgressions are speedily investigated and resolved and all guilty parties are held accountable for their actions.
• The Department of Labour brief the Committee on progress regarding proposed adjustments to the Training Layoff Scheme before the end of the 2016/17 financial year.
• The Compensation Fund (CF) continues to report quarterly on implementation of its Action Plan to the Portfolio Committee on Labour. The information reported in this regard should be verified by internal audit and presented to audit committee before submission to Parliament. The Action Plan should focus on, amongst others, the following:
  • Implementation of corrective action from investigation reports.
  • Strengthening internal controls to prevent fraud, corruption and error in the environment.
  • Supply Chain Management processes that will ensure economic, effective and efficient procurement and use of resources.
  • Stabilise IT systems within the CF environment to ensure optimal understanding and use of such systems (by employees) before changing them.
• In their next engagement with the Committee, the Department must provide a progress report on the targets that were not met with regards to:
  • The number of complaints resolved within 14 days at the registration services of the ESSA.
  • ICT systems that impact negatively on service delivery that have consequences for workers.
  • Registration of new entities by the Inspection and Enforcement Services.
  • Registration of private employment agencies and Temporary Employment Services which has consequences for workers.
  • Promotion of sound labour relations as per the strategic goal.

 

• Legal requirements are met when concluding employment contracts to curb incidents like the irregular employment contract of the chairman of the CCMA governing body, which needs to be rectified.
• The Department regularly provides feedback on cases referred to the South African Police Service (SAPS).

 

1. Appreciation

 

The Committee appreciates the cooperation it received from the Department and its entities. The Committee also acknowledges the assistance of the Auditor-General and National Treasury in providing information necessary for compiling this report.

 

 

Report to be considered.