Analysis of Unpaid Invoices Older Than 30 Days in 2019/2020 FY

INVOICES INVOICES OLDER THAN 30 DAYS OLDER THAN 30 DAYS NOT PAID NOT PAID 2019/2020 2019/2020 FY FY 1

NUMBER OF INVOICES OLDER THAN 30 DAYS NUMBER OF INVOICES OLDER THAN 30 DAYS (all Dept. & Entities) FY: 2019/2020 (all Dept. & Entities) FY: 2019/2020 DEPARTMENTS & ENTITIES INVOICES OLDER THAN 30 DAYS COMPLIANCE RATING APR 2019 MAY 201 NO OF INVOICES AMOUNT R 33,298.25 76,708,589.02 NO OF INVOICES AMOUNT R 2 3 290,080.71 76,708,589.02 0% 0% Agriculture & Rural Dev Education 354 268 1512 362,555,490.12 1181 308,563,425.85 0% Health 0 0.00 30 R57,387.42 50% COGTA 4 84,832.68 11 3,061,923.07 0% Human Settlements 0 0.00 57 784,130.49 50% Premier 9 573,521.42 1 511,571.14 0% Public Works & Infrastructure PRT SACR 32 70 9,494,670.90 373,708.37 4 399,285.56 547,403.31 0% 0% 323 2 154,341.50 2 12,056.40 0% Social Dev 0 0 0 0 16 17 0.00 0.00 0.00 0.00 0 0 0 0 17 5532 0.00 0.00 0.00 0.00 100% 100% 100% 100% 0% 0% Treasury DESTEA FSGLT Authority Fleet Man FDC MEDPAS 39,874.35 3,324,643.66 29,222.67 11,339,060.27 2018 453,342,970.27 7429 402,246,748.49 TOTALS LEGEND 100% 4 Dept. & Entities 99%-50% 2 Dept. 49%-5% 0 Dept. & Entity 2 0 % 10 Dept. & Entities

& 2019/2020 FY & 2019/2020 FY NUMBER OF INVOICES OLDER THAN 30 DAYS (all Dept. & Entities) (all Dept. & Entities) MONTHS AMOUNT R 2017/18 2018/19 2019/20 INCREASE or DECREASE 2017/18 2018/19 2019/20 INCREASE or DECREASE 4599 10 056 2018 405,022,574.00 483,774,501.18 453,342,970.27 Decrease APRIL Decrease 215,166,626.63 441,778,575.17 402,246,748.49 Decrease MAY 3856 4839 7429 Increase 237,534,485.21 456,989,343.26 JUNE 4345 7024 5658 350,099,006.45 442,990,005.85 JULY 6372 301,441,666.34 361,211,392.99 AUGUST 4616 4587 484,780,872.34 287,582,986.54 SEPTEMBER 3906 2518 349,453,922.04 359,978,190.23 OCTOBER 3307 3264 434,527,934.58 2565 293,418,617.75 NOVEMBER 3034 386,334,673.57 155,164,836.54 DECEMBER 3496 4310 324,471,115.75 465,040,602.77 JANUARY 1252 5093 412,829,527.10 523, 817, 830. 86 FEBRUARY 2856 4950 511,854,711.59 418, 325, 510.33 MARCH 2144 6133 LEGEND INCREASE 3 DECREASE

VALUES & INVOICES VALUES & INVOICES (Graph depicts performance of departments and (Graph depicts performance of departments and Chart of 30 Day Payment: All Dept & Entities 2018FY entities: 2019 entities: 2019- -20 Financial Year 20 Financial Year 500,000,000.00 Number of Invoices FY - 2019/2020 450,000,000.00 400,000,000.00 MARCH 350,000,000.00 FEBRUARY JANUARY 300,000,000.00 DECEMBER NOVEMBER 250,000,000.00 OCTOBER SEPTEMBER 200,000,000.00 AUGUST JULY 150,000,000.00 JUNE MAY 7429 100,000,000.00 APRIL 2018 50,000,000.00 0 1000 2000 3000 4000 5000 6000 7000 8000 0.00 2019/2020 2019/2020 Values Number of invoices Apr May Jun July Aug Sept Oct Nov Dec Jan Feb Mar 4

REASONS PROVIDED REASONS PROVIDED NAME OF DEPARTMENT APP 2019 MAY 2019 REASONS REASONS Agriculture and Rural Development 1. The payment cannot be finalised due to error" 2. No banking details record exist for supplier liable store combination. 3. The department have engaged has engaged the Provincial Treasury to assist and the problem will be addressed. Education 1. Cash flow challenges. Health 1. Information Technology-An amount of R 2 833,890.01- FSDOH A letter was send to Microsoft because they did not meet their obligations. The process was stopped by the Department. 2. Medpas claims to the value of R 116,373,971.93 will be disbursed in the first week of May 2019 due run schedule. 3. Government Garage invoices to the value of R 36,122,292.11 are not paid. The invoices need to be corrected. 4. Standard Bank: an invoice to the value of R 1,069,002.50 will be in the first week of May due run schedule. 5. Other invoices (Auditor General, Vodacom, Batsumi, Transnet and others) are captured on the system and will be disbursed in May due run schedule. 1 There is insufficient funds. The relevant section is in the process of shifting funds. 1. Cash Flow Challenges. 1. Information Technology - An amount of R2, 833,890.01 - FSDOH a letter was sent to Microsoft because they did not meet their obligations. The process was stopped by the Department of Health. The Department is waiting for he credit note from SITA for the invoice to the value of R361,247.69. 2. Medpas - claims to the value of R77, 287,013.62 will be disbursed in the week of June 2019 due to run schedule. 3. Government Garage - There is a dispute between the Department and Government Garage with regards to the invoices to the value of R40, 328,682.00 4. Other various invoices (Vodacom, Telkom and others) have not been paid due to submission that has not been approved, expired tax clearance certificate and others are captured on the system and will be disbursed in June due to run schedule. Cooperative Governance and Traditional Affairs Human Settlements N/A 1. Invoices returned to the supplier for rectifications without updating LOGIS 1. There was a query on the claims. Beneficiaries were not linked to the correct project. Query was resolved and beneficiaries paid on 2019/06/04. 1.The amount of R1 010.00 - Claim had a query which was resolved, the claim will be paid in the next run, and R6,576.82 Claim awaiting reconciliation. 2. The amount of R21, 417.33,R54,078.53 and R1,750.00 - The claims relate to Demolition projects. The demolition funds were surrender as per EXCO decision. 36

REASONS PROVIDED REASONS PROVIDED NAME OF DEPARTMENT APP 2019 MAY 2019 REASONS REASONS Premier N/A 1. There was a system error and the order had to be cancelled and started fresh so that the payment can be finalized. The process was overseen by the departmental system controller and is busy with the process of finalising the order as we are experiencing some issues from our side. N/A Public Works 1. These invoices were delayed in terms of payment and the Department is in the process of investigation to establish the cause of the delay interms of payments. Action taken: Disciplinary letters will be issued once invoices have been processed and the Department concluded on the investigation. 1. Inadequate cash flow in the department Police, Roads and Transport 1.System error 2.Tax clearance certificate for Ashwood has expired 3. The service provider have to change invoice in accordance to the initial order 1. System error could not be cancelled on LOGIS and the matter was reported to Treasury Sports, Arts, Culture and Recreation 1. Invoices are from the previous financial year and could not be paid due to the fact that the supplier was deactivated on CSD 2. System error could not be cancelled on Logis. The matter was reported to Treasury. Response: Provincial Treasury confirmed that no system error was reported and the Department will be requested to submit proof. 1. Payment was unable to be final authorised due to insufficient funds N/A Social Development Payment was unable to be final authorised due to sufficient funds. Provincial Treasury N/A Provincial Treasury 36

REASONS PROVIDED REASONS PROVIDED NAME OF ENTITY APP 2019 MAY 2019 REASONS REASONS Economic Development, Tourism and Environmental Affairs N/A N/A Free State Gambling Liquor and Tourism Authority N/A N/A Fleet Management N/A N/A Free State Development Corporation N/A Non-Compliant Tax Status MEDPAS Due to unavailability of funds 1. Backlog due to high volume of transactions on the distribution that has to be reconcile to ensure that the invoice amount agrees with the dispatched vouchers and log sheets. Provincial Treasury 36

Registration of grievances related to none or late Payment of Invoices since 1 April 2019 8

GRIEVANCE RECEIVED FOR THE 2019/2020 FY GRIEVANCE RECEIVED FOR THE 2019/2020 FY GRIEVANCE NO. COMPANY NAME DEPARTMENT / ENTITY AMOUNT PROGRESS/ STATUS 01/2019 Education R83 777.88 Resolved NIFTY TRADING AND CONSULTANCY RIZE-UP COMMUNICATION AND CONSTRUCTION Education Resolved 02/2019 R 71 500,00 03/2019 Health R318 510.00 Resolved K KANENE PROJECTS (PTY) LTD 04/2019 Education Department Cancelled Order Resolved PSYDO (PTY) LTD 05/2019 Education R6750.00 Resolved BOYILANE SECURITY R6 345 956.26 06/2019 CV Projects SA Ltd Health Not resolved (letter send on 3/6/2019) R1 485 000 07/2016 General Energy System (Pty) Ltf Health Received (14/6/2019) Provincial Treasury 37

STATUS OF THE STATUS OF THE OFFICE AUTOMATION SOLUTIONS OFFICE AUTOMATION SOLUTIONS 10

OFFICE AUTOMATION SOLUTIONS OFFICE AUTOMATION SOLUTIONS Contract is effective as from 1 June 2019 (36 months period with option to extend for 24months) SLA to be finalized by State Law Advisor expecting 20 June 2019 Finale price was finalized and will be in addition to SLA 7 Service Providers appointed as per the respective departments and per items: No. Department Service Provider Items Readiness Alenti 220 (PTY) Ltd All Products: - Digital Duplicators - Shredders - Facsimile Machines - Multifunction Printers, Monochrome - Multifunction Printers, Color - Plotters All Products: - Digital Duplicators - Shredders - Facsimile Machines - Multifunction Printers, Monochrome - Multifunction Printers, Color - Plotters All Products: - Digital Duplicators - Shredders - Facsimile Machines - Multifunction Printers, Monochrome - Multifunction Printers, Color - Plotters 1 Provincial Treasury Week of 18-28 Jun 2019 Gerox Trading 2 Office of the Premier Started Jun 2019 Gerox Trading 3 Cooperative Governance and Traditional Affairs Week of 18-28 Jun 2019 11

OFFICE AUTOMATION SOLUTIONS OFFICE AUTOMATION SOLUTIONS No. Department Service Provider Items Readiness Olivestments Josevio Tol Distributors All Products: - Digital Duplicators - Shredders - Facsimile Machines - Multifunction Printers, Monochrome - Multifunction Printers, Color - Plotters All Products: - Digital Duplicators - Shredders - Facsimile Machines - Multifunction Printers, Monochrome - Multifunction Printers, Color - Plotters Products: - Shredders - Facsimile Machines - Multifunctional Printers, Monochrome - Multifunctional Printers, Color Products: - Digital Duplicators - Plotters Products: - Shredders - Facsimile Machines - Multifunctional Printers, Monochrome - Multifunctional Printers, Color Products: - Digital Duplicators - Plotters 4 Human Settlement Week of 18-28 Jun 2019 BHR Business Systems (PTY) Ltd T/A Konica Minolta 5 Health Current Service Provider will continue with current leases of old contract until machines will expired Lesedi ICT (PTY) Ltd 6 Sport, Art, Culture and Recreation Week of 18-28 Jun 2019 BHR Business Systems (PTY) Ltd T/A Konica Minolta Lesedi ICT (PTY) Ltd 7 Social Development Started with deploying BHR Business Systems (PTY) Ltd T/A Konica Minolta 12

OFFICE AUTOMATION SOLUTIONS OFFICE AUTOMATION SOLUTIONS No. Department Service Provider Items Readiness Alenti 220 (PTY) Ltd All Products: - Digital Duplicators - Shredders - Facsimile Machines - Multifunction Printers, Monochrome - Multifunction Printers, Color - Plotters All Products: - Digital Duplicators - Shredders - Facsimile Machines - Multifunction Printers, Monochrome - Multifunction Printers, Color - Plotters Products: - Facsimile Machines - Multifunction Printers, Monochrome - Multifunction Printers, Color Products: - Digital Duplicators - Shredders - Plotters Products: - Facsimile Machines - Multifunction Printers, Monochrome - Multifunction Printers, Color Products: - Digital Duplicators - Shredders - Plotters Products: - Digital Duplicators - Multifunction Printers, Monochrome - Multifunction Printers, Color 8 Agriculture and Rural Development Week of 18-28 Jun 2019 Olivestments Josevio Tol Distributors 9 Police, Roads and Transport Week of 18-28 Jun 2019 Kruger Mangaung 10 Public Works and Infrastructure Week of 18-28 Jun 2019 Gerox Trading cc Kruger Mangaung 11 Economic and Small Business Development, Tourism and Environmental Affairs Week of 18-28 Jun 2019 Gerox Trading cc Lerostyle (PTY) Ltd 12 Education Week of 18-28 Jun 2019 13

RT15 CONTRACT CHALLENGES RT15 CONTRACT CHALLENGES 14

CHALLENGES ON RT CONTRACT (VODACOM) CHALLENGES ON RT CONTRACT (VODACOM) Increase of limits received Departments to work with their Spend Manager in terms of increasing limits Deviations to be submitted in terms of increasing limits Look at increasing to highger level than to increase to unlimited affecting lower level users Departments not having cell phone policies in place (NT has provided a framework Some departments are not paying full invoiced amount- according to deaprtments they are collect money from internal divisions and then only pay Vodacom The above is causing delays on orders dues to accounts being In arrears. COGTA- issues raised on content services Education still did not set limits for users and this create high spend in terms of cell phone account 36

FEEDBACK ON MONTH TO MONTH FEEDBACK ON MONTH TO MONTH 16

MONTH TO MONTH EXTENSIONS MONTH TO MONTH EXTENSIONS AGSA FINDINGS 2017/2018 CONTRACTS EXTENDED ON MONTH TO MONTH MAY 2019 REASONS STATUS Contravention of Section 217 Deviations 1. Catering 2. Event Management 3. Public Information Platform (only affecting PT) 1. Travel Management 2. Transportation & Shuttle 3. Labour Saving Devices 1. Contracts as irregular expenditure to be reported 2. PT requested opinion from NT (OCPO) awaiting for NT s assessment 36

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