1. Annual Report 2016/17 Financial Year
Presentation to the Portfolio Committee by
Ms Thandi Moyo
Acting Chief Executive Officer
05 October 2017
Celebrating 125 years

2. Contents History of the Government Printing Works Legislative Mandate
Contribution to National Outcomes
Strategic Outlook
Summary of Performance (achieved and not achieved targets)
Summary of not achieved targets and causes
Financial performance
Audit opinion
Challenges
Key priorities for 2018/19 APP
Celebrating 125 years

3. Legislative Mandate
On 9 October 2009, GPW became a Government Component* reporting to the Minister of Home Affairs with oversight by the Parliamentary Portfolio Committee
Form
To deliver security printing and related services to the Government of South Africa
Mandate
*A new form of Entity in terms of Schedule 3 of the Public Service Act of 1994 as amended; Section 7(5)(c)
Celebrating 125 years

4. Contribution to national outcomes
Government Printing Works strives to make a significant contribution to the national outcomes of government including the following:
Create a better South Africa and contribute to a better and safer Africa and the world.
An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship.
Decent employment through inclusive economic growth.
A skilled and capable workforce to support an inclusive growth path.
Celebrating 125 years

5. Strategic Outlook Mission Vision Values Reliability Integrity Accuracy
Stakeholder satisfaction
Mission
To provide cost effective, reliable and timeous services in security printing to all spheres of Government
To provide the public with valuable information
To disseminate Government information through technology, innovation and service excellence
Vision
To be the State’s mandated security printer
Celebrating 125 years

6. History of the Government Printing Works
Celebrating 125 years

7. Summary of Performance
Financial Year
Total Targets
Achieved
Not Achieved
% Achieved
2016/17 28 22 6
79%
Branch
Total Targets
Achieved
Not Achieved
% Achieved
Production and Operations 4 3 1
75%
Strategic Management 9 7 2
78%
Financial Services 10
70%
Human Resources 5
100%
TOTAL 28 22 6
79%

8. Reasons for non-achievement
Targets not achieved
Planned Target
Actual Achievement
Reasons for non-achievement
Branch: Production and Operations
3 new equipment items procured according to the recapitalization plan
2 equipment items procured
Tender process for 3rd Kraft Press completed but not awarded due to the bid price exceeding the budget by 200%
Branch: Strategic Management
Implement security risk management according to approved plan
80% implemented
11% of the items was dependent on the completion of the construction of the MasterPlan and GPW Head office
The remaining 9% of the items was in progress at 31 March 2017
90% of annual internal audit plan, as approved by the audit committee implement
71% of the annual audit plan implemented
Audits relating to construction, eGazette and ICT could not be completed due to capacity challenges within the Internal audit Unit
Audit for Business continuity could not be conducted as the plan was not finalized‘
Audit of transport and logistics was in progress

9. Targets not achieved (cont…)
Planned Target
Actual Achievement
Reasons for non-achievement
Branch: Financial Services
Maintain clean audit opinion for 2015/16
Unqualified with emphasis of matter
The GPW incurred R36-million in irregular expenditure relating to the appointment of a construction service provider for Pavilion 3
Conclude SLA’s with 10 additional external customers and 10 supplier
9 SLA’s with external customers
10 SLA’s with suppliers
The GPW only signed up 9 additional customers during the year
Submit all the required and identified documentation for the establishment of a State Owned Company to Parliament for approval
Target partially achieved and to be tabled to Parliament in 2017
The Business Case, Socio-Economic Impact Assessment (SEIA) were approved
Draft SOC Bill approved by the Minister and on route to Cabinet for gazetting for public comment

10. Financial Performance
Statement of Profit or Loss and other comprehensive income
Statement of Financial Position
2016/17 FY
R’000
Revenue
Cost of sales
( )
Gross Profit
Other income
81 846
Operating expenses
( )
Surplus for the year
2016/17 FY
R’000
Non-Current Assets
Current Assets
Total Assets
Net Assets
Non-current Liabilities
Current Liabilities
Total Net Assets and Liabilities

11. Revenue growth (2014/15 to 2016/17) Revenue grew as follows:
11% from 2014/15 to 2015/16 and
21% from 2015/16 to 2016/17

12. Audit Opinion
The GPW received an unqualified audit opinion for the 2016/17 financial year. The matters of emphasis relates to irregular expenditure classified as follows:
Reasons for the irregular expenditure
2016/17
R’000
2015/16
Reasons recorded for not obtaining three quotations is not justifiable
394
1 005
No reasons for recorded for obtaining three quotations
127 -
Deviations from competitive bidding not justifiable to AGSA
12 717
5 464
Request for quotations did not include a specific condition and specify the minimum threshold for local production and content
338
Quotations not evaluated using the prescribed preference points system
911
B-BBEE points awarded without verification of supporting documentation (Accumulation of GVK contract for Pavilion 3 ending 2017)
24 949
TOTAL
32 329
The cumulative amount relating to irregular expenditure is R181,067,000

13. Key challenges in the past 12 months
Leadership, management capacity and skills at SMS level.
Intervention: disciplinary action instituted, mentoring, training and close performance monitoring through regular assessments and through EXCO bi-weekly and MANCO monthly meetings)
2. GPW’s compliance with requirements of National Treasury with regards to Supply Chain Management, Human Resources and Labour Relations. (duration varying from 3-5 years)
Intervention: Compliance register place and monitored monthly and quarterly by CFO and Internal Audit. Regular reports considered at every EXCO and MANCO meetings.
3. Organisational structure (job levels and remuneration levels) not aligned to printing and packaging industry resulting in a lot of unhappiness, low staff morale and conflict and challenges with organized labour
Intervention: Cabinet Memo submitted to Ministry for tabling for approval for a GPW Special Organisational Dispensation by DPSA. GPW have commissioned a service provider to do benchmarking of GPW organizational and remuneration structure which will be implemented as part of the OSD, once approved by Cabinet. (Approval Oct 2017 and implement 1 April 2018)

14. Key priorities for 2018/19 APP
Role players
Project manage the RSA e-passport project for delivery in March 2019 ( )
GPW, DHA, SSA, GCIS, ACSA , DA&C, and others
Curb irregular expenditure and achieve a clean audit (ongoing)
GPW, NT
Implement a new GPW Organisational structure in line with printing and packaging industry (1st draft benchmarking report due at end October)
GPW
Enhance and strengthen security in the production floor (2017/18 and 2018/19)
GPW, SSA
Regulations approved for state security printing and digitization (2017)
DHA, SSA
Ongoing and annual vetting of staff, security personnel and service providers
Operational and secure dispatch centre for security printing  (Visagie street Pavillion 3) (December 2017 – February 2018)

15. Key priorities for 2018/19 APP
Role players
Occupation of GPW Administration block (Head office)
GPW, DPW
Begin construction of GPW masterplan (final completion planned for 2020/2021)
Localisation strategy of the production equipment and consumables
GPW, DTI, DEPT OF SMALL BUSINESS
Marketing plan for implementation of Africa footprint strategy
- Finalise Swaziland
- Follow up on discussions with Mauritius and
finalise the MOU between GPW RSA and GPW
Mauritius
- Pursue additional 1 or 2 more country.
GPW, DIRCO
Automate finance and HR administration processes
GPW

16. Thank You
Celebrating 125 years