1. PRESENTATION TO SELECT COMMITTEE ON ECONOMIC DEVELOPMENT OF DMR 2011 / 12 ANNUAL REPORT
28 NOVEMBER 2012

2. Presentation Outline 1. Financial performance
- Annual Financial Statements
2. Auditor General’s Report
- 2011/12 Audit Findings

3. APPROPRIATION STATEMENT FOR 2011/2012
PROGRAMME
2011/12
Final Budget
R'000
Actual
Variance
2010/11
R’000
1. ADMIN
265,940
257,600
8,340
226,727
2. MHS
141,419
141,252
167
137,092
3. MR
184,396
188,608
4. MPP
447,210
446,187
1,023
442,270
Total
1,038,965
1,029,435
9,530
994,697

4. TREND ON UTILISATION OF FUNDS
 Economic
Classification
2011/12
R’000
2010/11
2009/10
Compensation of Employees
364,562
326,457
403,323
Goods and Services
222,639
200,013
263,475
Payment for Capex
18,558
28,347
48,690
Transfer and subsidy
420,837
438,120
3,828,303
Payments for financial assets
209 50
925
Interest and rent on land
2,630
1,710
Unspent
9,530
1,145
137,288
TOTAL (BUDGET)
1,038,965
995,842
4,682,004
% Under Spending
0.92%
0.11%
2.90%

5. Analysis of Unspent Funds
Under spending has been consistently below 3% for the last three years
For the year under review, the unspent funds of 0.92% is as indicated on slide 6

6. Analysis of major variance in Statement of Financial Performance (Actual expenditure)
Items
2011/12
2010/11
Variance
% variance
R’000 %
Compensation of employees
Basic salary
248,912
217,268
31,644
14.56
Periodic payments 39
187
(148)
(79.14)
Pension
32,936
28,875
4,061
14.06
Goods and services
Advertising
1,387
1,661
(274)
(16.50)
Communication
14,408
11,181
3,227
28.86

7. Analysis of major variance in Statement of Financial Performance (Actual expenditure)…cont
Items
2011/12
2010/11
Variance
% variance
R’000 %
Audit Cost
4,838
3,740
1,098
29.35
Operating leases
82,271
64,147
18,124
28.25
Transactions in financial assets and liabilities
209 50
159
318
Tangible capital assets
Buildings and other fixed structures
864
17,059
(16,195)
(94.93)
Machinery and equipment
17,064
10,148
6,916
68.15
Software and other intangible assets
630
1,140
(510)
(44.74)

8. Analysis of variances: Statement of Financial Position
Items
2011/12
2010/11
Variance
%variance
R’000 %
Current Assets
Cash and cash equivalents
9,383
37,493
(28,110)
(74.97)
Prepayments and Advances 89 40 49
122.5
Receivables
18,984
20,663
(1,679)
(8.13)
Current Liabilities
Voted Funds to be surrendered
9,530
1,145
8,385
732.3
Revenue to be surrendered
3,097
44,180
(41,083)
(92.9)

9. Analysis of variances: Statement of Financial Position
Item
2011/12
2010/11
Variance
%variance
R’000 %
Net Assets
Recoverable Revenue
2,129
1,052
1,077
102.4

10. Transfers and Subsidies to associated institutions
Recipient
2011/12
Purpose of transfer payment
Actual transfer
R'000
Council for Geoscience
154,405
Core funding in terms of establishing act and research to prevent ingress of water into underground holdings.
Council for Mineral Technology Research
196,956
R166.9 million -Core funding in terms of establishing act and R30 million - Mine Rehabilitation projects
South African Diamond and Precious Metals Regulator
39,374
Core funding in terms of establishing act
Mine Health and Safety Council
5,288

11. Auditor General’s Report
The Department obtained unqualified audit report for 2011/12
Department’s goal is a “clean report” and will continue putting process and procedures in place to ensure the achievement of this goal by 2014

12. Auditor General’s Report (2011/2012)
Emphasis of Matter No
AG finding
Action Plan 1.
The corresponding figures for 31 March 2011 have been restated as a result of an error discovered during the audit of 31 March 2012 financial statements of the Department.
Review, monitor and enhance the newly implemented
revenue system and the calculation of environmental liability.

13. Auditor General’s Report (2011/2012)…cont
Compliance with laws and regulations No
AG finding
Action Plan 1.
The financial statements submitted for auditing were not prepared in all material respects in accordance with the requirements of section 40(1) of the PFMA. Material misstatements of disclosure items identified by the auditors were subsequently corrected.
Manual and electronic systems in place to ensure proper reconciliation 2.
Money owing by the department was not always paid within 30 days of receiving an invoice or statement, as required by section 38(1)(f) of the PFMA and TR
Monitoring system in place and reported on a monthly basis.
To date 96% paid within 30 days. 3.
Revenue Management
Review, monitor and enhance the newly implemented
the revenue system

14. THANK YOU