1. Council for Geoscience Briefing of the PC on Mineral Resources:
Annual Report for 2011/12

2. Presentation Structure
Corporate performance
Historic Performance
Balanced Scorecard
Audited financial statements & multi year budgets
PFMA audit outcomes
Transformation trends
Geoscience mapping programs
Key geoscience projects

3. CORPORATE PERFORMANCE

4. Historic Statutory and Commercial Performance

5. Balanced Scorecard (2011/2012)
BSC Perspective: Market (Stakeholder/Customer) Focus
Measure
Baseline
2010/11
Target
2011/12
Performance
ATP performance index
97,87%
85%
95,4%
Customer satisfaction level
89,12%
80%
88,87%
# of Maps and Publications published focusing on exploration investment -- 5 2
# of Maps and Publications published focusing on other thrusts 42 20 14

6. Balanced Scorecard (2011/2012)
BSC Perspective: Market (Stakeholder/Customer) Focus
Measure
Baseline
2010/11
Target
2011/12
Performance
# of Rural Development Projects in progress 33 25 27
# of Regional and African Development Projects in progress 29 22 23
# of Environment-related Projects in progress -- 5 6

7. Balanced Scorecard (2011/2012)
BSC Perspective: Effective Systems (Organizational)
Measure
Baseline
2010/11
Target
2011/12
Performance
% ISO implementation in accordance with reference report
85%
90%
% Completion of Mine Seismic Network Integration (Klerksdorp area) --
100%
94%
Implement Geoscience Amendment Act
n.a.
Preferential (BEE/HDI) procurement as % of total procurement
26,82%
45%
31,54%
# of audit qualifications

8. Balanced Scorecard (2011/2012)
BSC Perspective: Economic (Financial) Growth
Measure
Baseline
2010/11
Target
2011/12
Performance
Total Revenue
R211m
R206,1m
R241,4m
Grant
R136,5m
R137,5m
R144,7m
Contract Revenue
R61,8m
R66m
R79,3m
Sundry Income
R12,7m
R2,6m
R17,3m
Commercial Surplus
R15,3m
R0m
R26,6m
Ratio of Contract Revenue to total Revenue
29,3%
32%
32,8%

9. Balanced Scorecard (2011/2012)
BSC Perspective: Economic (Financial) Growth
Measure
Baseline
2010/11
Target
2011/12
Performance
Ratio of External Revenue to Total Revenue
35,3%
33,3%
40%
Number of large tenders submitted and proposals submitted (>R1m) 29 44 21
Ratio of overhead costs to total cost (%)
69,8%
55%
67,2%
Ratio of personnel costs to total costs
62,8%
65%
59,7%

10. Balanced Scorecard (2011/2012)
BSC Perspective: World Class People (Learning and Growth)
Measure
Baseline
2010/11
Target
2011/12
Performance
Staff turnover
-11,6%
-7%
-2%
# of staff and students enrolled for MSc and PhD degrees 37 28 41
# of Engineering Geologists undergoing training -- 4 6
Proportion of Scientists to Total Staff
40,07%
43%
38,87%
% of scientific staff with PhD and MSc degrees
56,1%
55%
53,85%

11. Balanced Scorecard (2011/2012)
BSC Perspective: World Class People (Learning and Growth)
Measure
Baseline
2010/11
Target
2011/12
Performance
% satisfied protégées
50,4%
60%
91,3%
# of papers and articles published
121 35 81
# of Projects with Intellectual Property Value -- 1
# of projects with external collaborators 77 55 45

12. Balanced Scorecard (2011/2012)
BSC Perspective: World Class People (Learning and Growth)
Measure
Baseline
2010/11
Target
2011/12
Performance
# of strategic science partnerships 30 14 27
% satisfied staff
61,8%
65%
71%
EE Statistics (Consolidated) (W:B)
39:61
38:62
36:64
EE Statistics
(Gender) (M:F)
60:40
54:46

13. Audited Financials 2011/12 & Multi-year Budget for the Period 2012/13 to 2014/15
INCOME (RANDS)
2011/12
x 1000
Audited Actuals
2012/13
2013/14
2014/15
Government grant
Sales and contracts
66 000
79 365
72 600
79 860
87 846
Withdrawal from Reserves
10 000
19 000
20 000
Sundry income
2 625
14 673
2 756
2 894
3 039
TOTAL INCOME
EXPENDITURE
Personnel costs
Bursaries
1 200
580
1 900
2 090
2 300
Commercial project costs
29 700
32 640
32 670
35 937
39 531
Overheads and operating costs
59 318
44 121
SUBTOTAL
CAPITAL EXPENDITURE
Equipment
1 500
* 9 776
11 000
20 500
22 000
Land and buildings --
25 000
21 000
40 500
47 000
TOTAL EXPENDITURE
Surplus (Loss)
26 552
* Balance Sheet

14. Analysis of Government Grant Allocation for 2011/12 to 2014/15
ITEM
2011/12 R
2012/13
2013/14
2014/15
Baseline allocation
137.5m
142.8m
150.9m
161.7m
Water Ingress Project
16.8m
18.4m
19.8m
21m
Total Government Grant as at January 2012 (Before Additional Funding)
154.4m
161.2m
170.7m
181.7m
Derelict and Ownerless Mines Project
20m
Additional Funding (MTEF proposals)
- Stimulation of investment in the Mineral Sector -
30m
50m
65m
- Building & infrastructure (AC)
10m
25m
Total Government Grant
221.2m
260.7m
291.7m

15. PFMA AUDIT OUTCOMES FOR 2011/12

16. AUDIT FINDINGS STATUS REPORT 2011/12
A. MATTERS AFFECTING THE AUDITORS’ REPORT
Key Focus Area
Audit Finding
Management Comment
Current Status
Supply Chain Management
R (100%) of irregular expenditure incurred in the current year was as a result of contravention of SCM legislation.
Suppliers were not afforded an opportunity to submit quotations.
Suppliers did not declare if any of their members are employed by the state.
Suppliers did not submit SBD 9 declaration forms.
The omission occurred in 2010/11 when a quotation was accepted without tax clearance certificate. A check list is in place to ensure that this omission does not recur. A letter requesting condonation for this transaction has been sent to treasury.
This as a result of decentralized sourcing of suppliers when business units sought quotations from the same suppliers.
The CGS has adopted a position that business unit s will no longer no longer source quotations rather the Procurement unit will source, thus creating an environment whereby rotation of suppliers will be made possible.
3&4. A procurement checklist control that requires a second signature from the procurement manager has been introduced. This check list includes declaration and SBD9 form checks. Capacity has also been beefed up for documents to be given the required attention.
Resolved

17. Key Focus Area
Audit Finding
Management Comment
Current Status
Predetermined Objectives
1. Although no material findings concerning the usefulness and reliability of the performance information were identified in the GCS performance report, attention was drawn to the level of non-achievement of the planned targets:
Of the total number of planned targets, only 24 were achieved during the year under review. This represents 32%(>20%) of total planned targets that were not achieved during the year under review. This was as a result of the institution not considering relevant systems and evidential requirements during the annual strategic planning process.
The CGS set itself high standards in order to drive performance in the organisation. Improving our financial position, serving our stakeholders, developing and implementing effective systems, building skills levels and strengthening our science research are of paramount importance.
The CGS has taken notice of the audit finding though and has set more achievable performance targets.
Resolved

18. Key Focus Area
Audit Finding
Management Comment
Current Status
Annual Financial Statement
The financial statements submitted for auditing were not prepared in some material respects in accordance with the requirements of section 55(1) of the PFMA. Material misstatements of irregular expenditure, capital and current assets identified by the auditors were subsequently corrected, resulting in the financial statements receiving an unqualified audit opinion
The CGS accepts that the financials were lacking in some material respects. These resulted from the following extraordinary transactions that CGS viewed differently from the auditors:
Impairment of Intangible Assets
a. ERP software Licences – R2,964, (Expired)
Irrecoverable Accounts Receivables
b. University of Western Cape – R61, (Allocation Error)
c. Lekgotla Africa – R320, (Dispute)
Mine Health and Safety Council – R548, (Duplicate Invoice)
The above transaction types are being closely monitored to prevent recurrence.
Resolved

19. TRANSFORMATION TRENDS

20. Overall Demographic Profile by Race
Staff Profile as at 30 September 2012

21. Comparative Figures Staff Profile by Race
Period – 2004 to 2012

22. Comparative Figures Staff Profile by Gender
Period – 2004 to 2012

23. Comparative Figures, Professional Job Category by Race
Period – 2004 to 2012: Professionals only

24. Bursary Intake Analysis
Number of Bursars to 2012

25. Demographic Composition of Bursars by Race
Period /2012 Financial Year

26. Demographic Composition of Bursars by Gender
Period to 2012

27. National Geoscience Mapping Programmes
Geological Mapping
Geotechnical Mapping
Geophysical Mapping
Geochemical Mapping
Metallogenic Mapping

28. 1:250 000-scale Geological Mapping

29. 1:50 000-scale Geological Mapping

30. 1:50 000-scale Geotechnical Mapping

31. High-density Airborne Geophysical Mapping