Department - National Treasury

1 Department :REPUBLIC OF SOUTH AFRICAD epartment:REPUBLIC OF SOUTH AFRICAN ational Treasury , Private Bag X115, Pretoria, 0001, South AfricaTel: +27 12 315 5526 Fax: +27 12 315 5126 Editorial, coordination, design and layout: NT CommunicationsPrinting and binding:FormeSeTISBN: 978-0-621-41937-5RP: 177/2013 This report is also available on P Gordhan Minister of FinanceI have the honour of submitting the Annual report of the National Treasury for the period 1 April 2012 to 31 march Fuzile Director-GeneralDepartment:REPUBLIC OF SOUTH AFRICA mission Statement ..1organogram ..2 Legislative mandate ..4 Legislation enacted ..6 The ministry ..8 Public entities reporting to the minister ..10minister s Statement onPolicy and Commitment ..19 Deputy minister s 22 Accounting officer s overview.

2 25 Programme 1: Administration ..28 Programme 2: Economic Policy, Tax, Financial Regulation and Research ..36 Programme 3: Public Finance and Budget Management ..43 Programme 4: Asset and Liability 72 Programme 5: Financial Accounting and Reporting ..86 Programme 6: InternationalFinancial 102 Programme 7: Civil and Military Pensions, Contributions to Funds andother Benefits ..109 Programme 8: Technical and Management Support and Development Finance ..113 Annual Financial Statements ..122 Annual Financial Statements of the Project Development Facility (PDF) ..250 Annual Financial Statements of the Technical Assistance Unit (TAU) ..278 Human resources management ..297 Annexures ..328 ContentsMission stateMentorganograMNational Treasury | Annual report | 2012/131 MISSIoN STaTEMENTV isionThe National Treasury is the custodian of the nation s financial resources.

3 We hold ourselves accountable to the nation to discharge our responsibilities professionally and with humility, with the aim of promoting growth and prosperity for aspire to excellence in the quality of our analysis and advice and in the execution of our financial management responsibilities. We aim to realise the full potential of South Africa s economy and people and to mobilise the resources of the state, business enterprises and the wider community in a partnership of trust and mutual anD oBJeCtiVesThe National Treasury aims to promote economic development, good governance, social progress and rising living standards through accountable, economic, efficient, equitable and sustainable management of South Africa s public endeavour to advance economic growth, broad-based empowerment, progressive realisation of humanrights and the elimination of poverty.

4 We are responsible for preparing a sound and sustainable National Budgetand an equitable division of resources among the three spheres of strive to raise fiscal resources equitably and efficiently and to manage the government s financial assets andliabilities soundly. We promote transparency and effective financial custodian of the nation s financial resources, the National Treasury acknowledges the authority of Parliament through whom we are accountable to the nation. We value teamwork, sound planning and enthusiasm and strive continually to improve the quality, accuracy and reliability of our service people are our most valued assets. We seek to be an employer of choice, we invest in the educationand training of our staff, we cultivate a learning and consultative environment, we make use of the best available technological support and we aim to mobilise the full potential of our our dealings with the public and with our colleagues, we act transparently and with integrity, showing respectand demonstrating fairness and achieving these things.

5 We will honour the faith that the South African public has placed in Treasury | Annual report | 2012/132oRGaNoGRaMPravin GordhanMinister of FinanceNhlanhla NeneDeputy Minister of FinanceLungisa FuzileDirector-General M edia Liaison & Communications Legal Services Legislation Internal Audit Function Chief Risk Officer162345 National Treasury | Annual report | 2012/133 Stadi MngomezuluHead Corporate ServicesMmakgoshi Phetla-LekhetheHead International & Regional Economic Policy S trategic Projects & Support Human Resources Management Chief Financial Officer Information & Communications Technology African Economic Integration International Finance & Development Protection Services E conomic Services Administrative Services Education & Related Departments & Labour Health & Social Development Technical Assistance Unit Urban Development & Infrastructure National Capital Projects Project Management Capacity Building MFMA Implementation Accounting Support & Integration Internal Audit Support Risk Management Technical Support Services Governance Monitoring & Compliance Specialised Audit Services Regulatory Impact Assessment Modelling & Forecasting Microeconomic policy Macroeconomic policy Financial Sector Development Financial Services Financial Stability Economic Tax Analysis Legal Tax Design Local Government

6 Budget Analysis Intergovernmental Policy & Planning Provincial & Local Government Infrastructure Provincial Budget Analysis Sectoral Oversight Liability Management Financial Operations Strategy & Risk Management Governance & Financial Analysis Contract Management Norms & Standards Supply Chain Policy Financial Systems Expenditure Planning Public Finance Statistics International Development Coordination Fiscal Policy Public Private Partnership Unit Public Entities Governance Unit Neighbourhood Development Unit Public Sector RemunerationIsmail MomoniatHead Tax & FinancialSector PolicyThuto ShomangHead Asset & Liability ManagementAndrew DonaldsonHead Public Finance Matthew SimmondsHead Budget Office Fundi TshazibanaHead Economic Policy Goolam AboobakerDeputy Director-General Office of the Director-General Coen KrugerHead Specialist Functions Freeman NomvaloHead Office of the Accountant-General Kenneth Brown Head Intergovernmental Relations 1627384951078910(Up to March 2013)LegisLatiVe ManDateLegisLation enaCteDNational Treasury | Annual report | 2012/135 LEGISLaTIvE MaNDaTEThe National Treasury s mandate is to promote the National government s fiscal policy; coordinate macroeconomic policy and intergovernmental financial and fiscal relations; manage the preparation of the budget.

7 And ensure that revenue and expenditure, assets and liabilities, public entities and constitutional institutions are managed in a transparent and effective serViCes As the political principal of the Department , the minister of Finance regards collaboration with Parliament as vital. Consequently, during the period under review the National Treasury continued its interactions with parliamentary committees and particularly with the Standing Committee on Finance; the Standing Committee on Appropriations; the Select Committee on Finance; and the Select Committee on Appropriations. other committees with which the Department worked closely were the Standing Committee on Public Accounts and all other relevant portfolio committees in Parliamentary Service office (PSo) is at the core of maintaining this relationship.

8 The office is also the vehicle through which financial policies and pieces of legislation are presented to Parliament for consideration and approval. During the period under review, the PSo coordinated work processes between policy makers and public representatives, with information continuing to flow from the ministry through Cabinet to Parliament and vice clients of the PSo include but are not limited to: Members of Parliament Parliamentary committees Parliamentary administrative staff Civil society institutions, and Members of the public. The PSo also maintains collegial and cooperative relationships, on behalf of the ministry, with political structures and with the offices of the Presiding officers, the Secretary to Parliament and the Leader of Government Business.

9 National Treasury | Annual report | 2012/136 LEGISLaTIoN ENacTED1. Division of Revenue act, 2012 (act No. 5 of 2012) Bill enacted: Division of Revenue Bill [B 4 2012] English text signed by the President. Assented to 15 may 2012 Published in Government Gazette No. 35361, dated 17 may 20122. appropriation act, 2012 (act No. 7 of 2012) Bill enacted: Appropriation Bill [B 3 2012] English text signed by the President. Assented to 11 July 2012 Published in Government Gazette No. 35512, dated 12 July 20123. Rates and Monetary amounts and amendment of Revenue Laws act, 2012 (act No. 13 of 2012) Bill enacted: Rates and Monetary Amounts and Amendment of Revenue Laws Bill [B10 2012] English text signed by the President.

10 Assented to 5 october 2012 Published in Government Gazette No. 35775, dated 9 october 20124. adjustments appropriation act, 2012 (act No. 17 of 2012) Bill enacted: Adjustments Appropriation Bill [B32 2012] English text signed by the President. Assented to 10 December 2012 Published in Government Gazette No. 35993, dated 11 December 20125. Division of Revenue amendment act, 2012 (act No. 18 of 2012) Bill enacted: Division of Revenue Amendment Bill [B 33 2012] English text signed by the President. Assented to 10 December 2012 Published in Government Gazette No. 35994, dated 11 December 20126. Financial Markets act, 2012 (act No. 19 of 2012) Bill enacted: Financial Markets Bill [B12B 2012] English text signed by the President.