Government Printing Works Budget Allocations 2024-25 Briefing
Presentation to the Portfolio Committee on Home Affairs by the Government Printing Works regarding budget allocations for the 2024-25 financial year, covering various aspects such as revenue, capex budget, cost of employment, approved organizational structure, goods & services, expenditure assumptions, cash flow analysis, strategic risks, and performance targets. The presentation highlights GPW's legislative mandate, contribution to government priorities, organizational structure, core services, critical projects, and annual comparative performance analysis.
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Presentation to the Portfolio Committee on Home Affairs Briefing by the Government Printing Works (GPW) on Budget Allocations for the 2024-25 Financial Year Date: 27th February 2024 Time: 09:00 1
Presentation Overview 12. GPW Budget 2024/25 12.1 Budget 12.2 Revenue 12.3 Revenue Drivers 12.4 Revenue Assumptions 12.5 Capex Budget 2024/25 12.6 Capex Assumptions 12.7 Cost of Employment 13. Approved Organisational Structure 14. Goods & Services 15. Expenditure Assumptions 16. Cash Flow MTEF Period 17. Cash Flow Analysis 18. Audit Matters 19. Strategic Risks 20. Conclusion 1. 2. 3. 4. Purpose Legislative mandate APEX Government Priorities (2019 to 2024) GPW contribution to priorities for the 2020- 2025 MTSF Cycle GPW Priorities for the 2020-2025 MTSF Cycle Strategic outlook GPW Structure Core Services Critical Projects 10. GPW s Annual Comparative Performance Analysis 11. Performance Targets for the Financial Year 11.1 Office of the CEO 11.2 Manufacturing and Engineering 11.3 Operations Management 11.4. Corporate Services 5. 6. 7. 8. 9. 2
1. Purpose To present the Budget Allocations for Government Printing Works for the financial year 2024/25, to the Portfolio Committee on Home Affairs. 3
2. Legislative mandate GPW legislative mandates of the DHA, in particular the civic mandate of the Department, which is grounded on three sets of related principles as stated in Chapter 1, Section 3 of the Constitution as follows: supports the constitutional and GPW is a National Government Component reporting to the Minister of Home Affairs, following Proclamation in the Government Gazette No. 32566, on the 09th October 2009, and as referred to in Section 7(2) and 7(5) read with Schedule 3 Part A of the Public Service Act, Proclamation No.103 of 1994. GPW operates within the Public Service established by section 197(1) of the Constitution of the Republic of South Africa. There is a common South African citizenship. All citizens are: (a) equally entitled to the rights, privileges and benefits of citizenship; and (b) equally subject to the duties and responsibilities of citizenship. Mandate: To deliver security printing and related services to the Government of South Africa 4
3. Apex Government Priorities (2019 to 2024) 1. 2. 6. Building a capable, ethical and developmental State 7. Economic transformation and job creation Social cohesion and safe communities A better Africa and world GPW contributes to these MTSF Priorities 5
4. GPWs contribution to priorities for the 2020-2025 MTSF cycle GPW contributes to the MTSF priorities as follows: MTSF priority Social cohesion and safe communities GPW s contribution Production of national security documents to citizens and legal foreign nationals MTSF commitment 100% Identity documents and passports produced according to client s quality and quantity specifications Recruitment of unemployed youth, women and people with disabilities Refreshment of the South African Passport 2020 series 100 young people taken through Artisan and Graduate programme(s) Economic transformation and job creation A better Africa and world 100% passports produced according to client s quality and quantity specifications Reposition GPW to support a capable, ethical and developmental State, through implementation of the revised Organisational models, policies and procedures. 70% of GPW employees trained in line with priorities identified in the Workplace Skills Plan Building a capable, ethical and developmental State 90% implementation of the approved Internal Audit plan Business Continuity Management Programme fully implemented in line with the Compliance and Risk Implementation Plan by 2025 GPW Security model fully rolled out as per the Security Plan by 2025 6
5. GPW Priorities for the 2020-2025 Strategic Plan GPW remains committed to deliver based on the following priorities/ strategic pillars: 4. Implement long term vision (Vision 2030), of being a State security printer of choice in the SADC region and other African countries. 1. Reposition the GPW s operations to ensure its stability, sustainability and viability as a critical national security printing organization. 2. Improve customer experience through delivery of timeous, quality and quantity services 5. Recruit, develop and retain GPW s workforce to meet market and client demands. 6. Upgrade facilities to ensure effective management of all operations. 3. Ensure return on investment and sound financial management and sustainability. 7
Key priorities cont.. a. Priority on Gender Based Violence and Fermicide: promotion of economic opportunities for women, youth and People with Disabilities (implementation of specific goals in procurement processes) a. Fight against crime: continue with efforts to tackle crime to give sense of safety to the citizens and attracting investment and economic opportunities. (localisation strategy: polycarbonate plant- investment in research and development) 8
6. Strategic Outlook Vision To be the State s mandated security printer Mission To provide cost effective, reliable and timeous services to all spheres of government in printing To deliver equitable information to the public and To disseminate government information through technology, innovation and service excellence Values Service oriented Productive Ethical and having integrity Caring Security Conscious Outcomes A repositioned GPW to ensure stability, sustainability and viability as a critical national security facility Optimised processes and facilities resulting in increased operational effectiveness and improved customer service Sound people management practices to enable recruitment, development and retention of effective and efficient human capital. 9
7. GPWs Structure GPW s structure consists of the following five (5) branches: Office of the CEO comprises of: Internal Audit Enterprise Risk Management Communications Branch: Manufacturing and Engineering Branch: Operations Management Branch: Financial Services; and Branch: Corporate Services 10
8. Core services GPW focuses its attention on 5 core product families: (with the addition of a general/commercial stationary printing being the sixth product family) Identity Documents Travel Documents Government Gazettes CORE PRODUCT FAMILIES Examination Papers High Security Certificates 11
9. Critical Projects GPW Repositioning: Implementation of the Change Management Strategy and Plan Implementation of the ICT stabilisation plan to enable modernisation and automation of GPW s environment Development of ISO standards for business continuity, quality, information and communication technology, occupational health and safety, environmental, information security and security operations. Resolution of audit findings, strengthen internal controls, and attain financial probity. Expansion of GPW s footprint into SADC region and other African countries 12
9. Critical Projects cont Implementation of the Ministerial Review Panel Report recommendations. Facilitate enactment of the Security Printers Bill Implement plans to fast-track construction of the critical infrastructure projects: the Masterplan printing facility and the new Headquarters building Research and development on the establishment of a polycarbonate assembly plant in GPW; and Implementation of the asset recapitalisation plan and procure state of the art machinery to enhance operations 13
10. GPWs Annual Comparative Performance Analysis ANNUAL COMPARATIVE ANALYSIS ANNUAL PERFORMANCE PLANS GPW OVERALL ANNUAL PERFORMANCE Financial Year No of Branch Targets Achieved Not Achieved Annual % performance 2019/20 23 18 5 78% 2020/21 18 14 4 78% 2021/22 18 13 5 72% 2022/23 18 13 5 72% 2023/24 18 - - -
11. Performance Targets for the Financial Year The GPW s APP 2024/25 has a total of 15 performance targets aligned to the Strategic Plan. The targets are allocated in alignment with the approved structure as follows: Branch Number of Performance Targets 2 1. Office of the CEO 2. 4 Manufacturing and Engineering 3. 2 Operations Management 4. 7 Corporate Services Total 15 16
11.1 Office of the CEO Audited Performance 2020/21 Audited Performance 2021/22 Audited Performance 2022/23 NO. Outcome Outputs Output Indicators Estimated Performance 2023/24 Medium Term Targets 2024/25 2025/26 2026/27 Internal Audit 1. Independent and objective assurance and consulting services provided 94% of approved annual Internal Audit plan implemented 90% of approved annual internal audit plan implemented 100% of the annual internal audit plan implemented 100% of the approved annual internal audit plan implemented 100% of the approved annual internal audit plan implemented 100% of the approved annual internal audit plan implemented Annual Internal Audit plan implemented Percentage implementatio n of the Annual Internal audit plan 94% of approved annual Internal Audit plan implemented Quarterly Target Information for 2024/25 Output Indicator: Percentage implementation of the annual internal audit plan Annual Target: 100% of the approved annual internal audit plan implemented Reporting Period: Quarterly Quarter 1 Target: 20% of the approved annual internal audit plan implemented Quarter 2 Target: 30% of the approved annual internal audit plan implemented Quarter 3 Target: 30% of the approved annual internal audit plan implemented Quarter 4 Target: 20% of approved annual internal audit plan implemented 18
Office of the CEO, cont.. Audited Performance 2020/21 Audited Performance 2021/22 Audited Performance 2022/23 NO. Medium Term Targets Outcome Outputs Output Indicators Estimated Performance 2023/24 2024/25 2025/26 2026/27 Enterprise Risk Management 2. Business Continuity Management programme implemented 100% of Business Continuity Management activities implemented 100% of the Business Continuity Management Plan implemented 100% of the Business Continuity Management Plan implemented 100% of the Business Continuity Management Plan implemented Resilient, agile and sustainable business in the event of disaster Business Continuity Management implemented Percentage implementati on of the Business Continuity Management activities 100% of the Business Continuity Management activities implemented 100% of Business Continuity Management programme implemented Quarterly Target Information for 2024/25 Output Indicator: Percentage implementation of the Business Continuity Management activities Annual Target: 100% of the Business Continuity Management plan implemented Reporting Period: Quarterly Quarter 1 Target: 100% of the Business Continuity Management Plan implemented Quarter 2 Target: 100% of the Business Continuity Management Plan implemented Quarter 3 Target: 100% of the Business Continuity Management Plan implemented Quarter 4 Target: 100% of the Business Continuity Management Plan implemented 19
Branch: Manufacturing And Engineering
11.2 Branch: Manufacturing and Engineering NO Outputs Output Indicators Audited Audited Performance 2021/22 Medium Term Targets Audited Performance 2022/23 Estimated Performance 2023/24 Outcome Performance 2020/21 2024/25 2025/26 2026/27 1. Security printed materials produced Identity Documents/ cards that conform to client specifications produced Percentage of Identity Documents/ cards produced that conform to client specifications 100% of 1 267 244 Identity Documents/ cards produced that conform to client specifications 100% of 2 334 522 Identity Documents/ cards produced that conform to client specifications 100% of 2 576 709 Identity Documents/ cards produced that conform to client specifications 100% of Identity Documents/ cards produced that conform to client specifications 100% of Identity Documents/ cards produced that conform to client specifications 100% of Identity Documents/ cards produced that conform to client specifications 100% of Identity Documents/ cards produced that conform to client specifications Quarterly Target Information for 2024/25 Output Indicator: Percentage of Identity Documents/ cards produced that conform to client specifications Annual Target: 100% of Identity Documents/ cards produced that conform to the client specifications Reporting Period: Quarterly Quarter 1 Target: 100% of Identity Documents/ cards produced that conform to client specifications Quarter 2 Target: 100% of Identity Documents/ cards produced that conform to client specifications Quarter 3 Target: 100% of Identity Documents/ cards produced that conform to client specifications Quarter 4 Target: 100% of Identity Documents/ cards delivered that conform to client specifications 21
Branch: Manufacturing and Engineering, cont.. Audited Performance 2020/21 Audited Performance 2021/22 NO. Medium Term Targets Outcome Outputs Output Indicators Audited Performance 2022/23 Estimated Performance 2023/24 2024/25 2025/26 2026/27 2. Security printed materials produced Travel documents that conform to client specifications produced Percentage of Travel documents delivered that conform to client specifications 100% of 204 452 Travel documents delivered that conform to client specifications 100% of 533 098 Travel documents delivered that conform to client specifications 100% of 895 252 Travel documents delivered that conform to client specifications 100% of Travel documents produced that conform to client specifications 100% of Travel documents produced that conform to client specifications 100% of Travel documents produced that conform to client specifications 100% of Travel documents produced that conform to client specifications Quarterly Target Information for 2024/25 Output Indicator: Percentage of travel documents produced that conform to client specifications Annual Target: 100% of Travel documents produced that conform to client specifications Reporting Period: Quarterly Quarter 1 Target: 100% of Travel Documents produced that conform to client specifications Quarter 2 Target: 100% of Travel Documents produced that conform to client specifications Quarter 3 Target: 100% of Travel Documents produced that conform to client specifications Quarter 4 Target: 100% of Travel Documents produced that conform to client specifications 22
Branch: Manufacturing and Engineering, cont.. Audited Performance 2020/21 Audited Performance 2021/22 NO . Outcome Outputs Output Indicators Audited Performance 2022/23 Estimated Performance 2023/24 Medium Term Targets 2024/25 2025/26 2026/27 3. Security printed materials produced Examination papers that conform to client specifications produced Percentage of examinations papers produced that conform to client specifications 100% of 15 005 351 examination papers delivered that conform to client specifications 100% of 17 150 015 examination papers delivered that conform to the client specifications 100% of 19 261 371 examination papers delivered that conform to the client specifications 100% of examination papers produced that conform to the client specifications 100% of examination papers produced that conform to client specifications 100% of examination papers produced that conform to client specifications 100% of examination papers produced that conform to client specifications Quarterly Target Information for 2024/25 Output Indicator: Percentage of examinations papers produced that conform to client specifications Annual Target: 100% of examination papers produced that conform to the client specifications Reporting Period: Quarterly Quarter 1 Target: 100% of examination papers produced that conform to client specifications Quarter 2 Target: 100% of examination papers produced that conform to client specifications Quarter 3 Target: 100% of examination papers produced that conform to client specifications Quarter 4 Target: 100% of examination papers produced that conform to client specifications 23
Branch: Manufacturing and Engineering Audited Performance 2020/21 Audited Performance 2021/22 NO. Outcome Outputs Output Indicators Audited Performance 2022/23 Estimated Performance 2023/24 Medium Term Targets 2024/25 2025/26 2026/27 4. Security printed materials produced High Security Certificates that conform to client specifications produced Percentage of High Security Certificates produced that conform to client specifications 99% of 6 498 103 High Security Certificates delivered that conform to client specifications 99% of 11 881 934 High Security Certificates delivered that conform to client specifications 99% of 12 705 425 High Security Certificates delivered that conform to client specifications 99% of High Security Certificates produced that conform to client specifications 99% of High Security Certificates produced that conform to client specifications 99% of High Security Certificates produced that conform to client specifications 99% of High Security Certificates produced that conform to client specifications Quarterly Target Information for 2024/25 Output Indicator: Percentage of High Security Certificates produced that conform to client specifications Annual Target: 99% of High Security Certificates produced that conform to client specifications Reporting Period: Quarterly Quarter 1 Target: 99% of High Security Certificates produced that conform to client specifications Quarter 2 Target: 99% of High Security Certificates produced that conform to client specifications Quarter 3 Target: 99% of High Security Certificates produced that conform to client specifications Quarter 4 Target: 99% of High Security Certificates produced that conform to client specifications 24
Branch: Operations Management
11.3 Branch: Operations Management Audited Performance 2020/21 Audited Performance 2021/22 NO Outcome Outputs Output Indicators Audited Performance 2022/23 Estimated Performance 2023/24 Medium Term Targets 2024/25 2025/26 2026/27 1. Government Gazettes that conform to client specifications published Percentage of Government Gazettes published that conform to client specification s 100% of 2078 Government Gazettes published that conform to client specifications 100% 2130 of Government Gazettes published that conform to client specifications 100% of 2762 Government Gazettes published that conform to client specifications 100% of Government Gazettes published that conform to client specifications 100% of Government Gazettes published that conform to client specifications 100% of Government Gazettes published that conform to client specifications 100% of Government Gazettes published that conform to client specifications Government information coordinated and distributed Quarterly Target Information for 2024/25 Output Indicator: Percentage of Government Gazettes published that conform to client specifications Annual Target: 100% of Government Gazettes published that conform to client specifications Reporting Period: Quarterly Quarter 1 Target: 100% of Government Gazettes published that conform the client specifications Quarter 2 Target: 100% of Government Gazettes published that conform the client specifications Quarter 3 Target: 100% of Government Gazettes published that conform the client specifications Quarter 4 Target: 100% of Government Gazettes published that conform the client specifications 26
Branch: Operations Management, cont.. Audited Performance 2020/21 Audited Performance 2021/22 Audited Performance 2022/23 NO. Outcome Outputs Output Indicators Estimated Performance 2023/24 Medium Term Targets 2024/25 2025/26 2026/27 Integrated Marketing and Communication Strategy and Plan implemented 6 countries in the SADC region engaged 11 SADC countries engaged Follow up engagements conducted with 8 potential customers in the SADC region N/A Follow up engagements conducted with 8 potential customers in the SADC region Follow up engagements conducted with 8 potential customers in the SADC region Follow up engagements conducted with 8 potential customers in the SADC region 2. SADC countries informed of GPW product and service offerings Number of follow up engagements conducted with potential customers in the SADC region Quarterly Target Information for 2024/2025 Outcome Indicator: Number of follow up engagements conducted with potential customers in the SADC region Annual Target: Follow up engagements conducted with 8 potential customers in the SADC region Reporting Period: Quarterly Quarter 1 Target: 2 Countries in the SADC region engaged Quarter 2 Target: 2 Countries in the SADC region engaged Quarter 3 Target: 2 Countries in the SADC region engaged Quarter 4 Target: 2 Countries in the SADC region engaged 27
Branch: Corporate Services
11.4 Branch: Corporate Services NO Outcome Audited Performance 2020/21 Audited Performance 2021/22 Audited Performance 2022/23 Outputs Output Indicators Estimated Performance 2023/24 Medium Term Targets 2024/25 2025/26 2026/27 Human Resources Young people and women equipped with Artisan and other professional skills Young people recruited for artisan and graduate skills development programmes Number of unemployed young people recruited for skills development programmes 31 unemployed young people and women recruited for Artisan and Graduate skills development programmes 23 unemployed young people and women recruited for Artisan and Graduate skills development programmes 21 unemployed young people and women recruited for Artisan and Graduate skills development programmes 20 unemployed young people recruited for Artisan and Graduate skills development programmes 20 unemployed young people recruited for skills development programmes 20 unemployed young people recruited for skills development programmes 20 unemployed young people recruited for skills development programmes 1. Quarterly Target Information for 2024/25 Output Indicator: Number of young people and women placed in the youth development programme Annual Target: 20 unemployed young people recruited for skills development programmes Reporting Period: Quarterly Quarter 1 Target: Skills and areas of placement identified and a plan developed Quarter 2 Target: Skills development programme for young people submitted for approval and intake advertised Quarter 3 Target: Skills development programme for young people shortlisting completed Quarter 4 Target: Interviews completed and offer letters issued to young people who are successful 29
Branch: Corporate Services, cont.. Audited Performance 2020/21 Audited Performance 2021/22 NO. Outcome Outputs Output Indicators Audited Performance 2022/23 Estimated Performance 2023/24 Medium Term Targets 2024/25 2025/26 2026/27 2 Capacity of workforce developed to support service delivery Workforce trained as per the WSP identified priorities Percentage of total workforce trained as per critical WSP identified priorities 46.5% of workforce trained as per WSP identified priorities 88.9% of total workforce trained as per the WSP identified priorities 74% of total workforce trained as per critical WSP identified priorities 70% of total workforce trained as per critical WSP identified priorities 70% of total workforce trained as per critical WSP identified priorities 70% of total workforce trained as per critical WSP identified priorities 70% of total workforce trained as per critical WSP identified priorities Quarterly Target Information for 2024/25 Output Indicator: Percentage of total workforce trained as per critical WSP identified priorities Annual Target: 70% of total workforce trained as per critical WSP identified priorities Reporting Period: Quarterly Quarter 1 Target: 10% of total workforce trained Quarter 2 Target: 25% of total workforce trained as per the WSP identified priorities Quarter 3 Target: 25% of total workforce trained as per the WSP identified priorities Quarter 4 Target: 10% of total workforce trained as per the WSP identified priorities 30
Corporate Services, cont.. Audited Performance 2020/21 Audited Performance 2021/22 NO . Outcome Outputs Output Indicators Audited Performance 2022/23 Estimated Performance 2023/24 Medium Term Targets 2024/25 2025/26 2026/27 N/A N/A N/A Key initiatives and performance areas in line with the change Management Strategy and implementation plan outlined Change management roadmap to guide Implementation of change initiatives Percentage implementation of Change Management Plan Change Management Strategy and Implementati on Plan developed 60% implementation of Change Management Plan 80% implementation of Change Management Plan 100% implementati on of Change Management Plan 3. Quarterly Target Information for 2024/25 Output Indicator: Percentage implementation of Change Management Plan Annual Target: 60% implementation of Change Management Plan Reporting Period: Quarterly Quarter 1 Target: 10%Change Management Strategy and plan implemented in line with the approved quarterly deliverables Quarter 2 Target: 20% Change Management Strategy and plan implemented in line with the approved quarterly deliverables Quarter 3 Target: 20%Change Management Strategy and plan implemented in line with the approved quarterly deliverables Quarter 4 Target: 10%Change Management Strategy and plan implemented in line with the approved quarterly deliverables 31
Corporate Services, cont.. NO Outcome Audited Performance 2020/21 Audited Performance 2021/22 Outputs Output Indicators Audited Performance 2022/23 Estimated Performance 2023/24 Medium Term Targets 2024/25 2025/26 2026/27 GPW positioned to contribute positively to a capable and development al state GPW Gender- based Violence and Femicide Plan implemented Percentage of GPW Gender based Violence and Femicide Plan implemented N/A N/A N/A N/A 60% of GPW Gender based Violence and Femicide Plan implemented 70% of GPW Gender based Violence and Femicide Plan implemented 80% of GPW Gender based Violence and Femicide Plan implemented 5. Quarterly Target Information for 2024/25 Output Indicator: Percentage of GPW Gender based Violence and Femicide Plan implemented Annual Target:60% of GPW Gender based Violence and Femicide Plan implemented Reporting Period: Quarterly Quarter 1 Target: GPW Gender based Violence and Femicide Plan developed and submitted for approval by the CEO Quarter 2 Target: 20% GPW Gender based Violence and Femicide Plan implemented Quarter 3 Target: 20% GPW Gender-based Violence and Femicide Plan implemented Quarter 3 Target: 20% GPW Gender-based Violence and Femicide Plan implemented 32
Branch: Corporate Services, cont.. NO. Outcome Outputs Output Indicators Audited Performance 2021/22 Audited Performance 2022/23 Medium Term Targets Audited Performance 2020/21 Estimated Performance 2023/24 2024/25 2025/26 2026/27 Information Communication Technology (ICT) 6. Secured and resilient GPW Information System and Digital Services Ecosystem Platform Ecosystem Platform in line with Disaster Management Act and good governance N/A N/A N/A 60% of the required capability for the GPW Information Systems and Digital Services Ecosystem Platform in line with Disaster Management Act and good governance Full capability implemented for the GPW Information Systems and Digital Services Percentage of the required GPW Information Systems and Digital Services Ecosystem Platform in line with the Disaster Management Act and good governance achieved 15% of the required GPW Information Systems and Digital Services Ecosystem Platform in line with the Disaster Management Act and good governance achieved 15% of the required GPW Information Systems and Digital Services Ecosystem Platform in line with the Disaster Management Act and good governance achieved 15% of the required GPW Information Systems and Digital Services Ecosystem Platform in line with the Disaster Management Act and good governance achieved Annual Target Information for 2024/25 Output Indicator: Percentage of the required capability for the GPW Information Systems and Digital Services Ecosystem Platform in line with the Disaster Management Act and good governance achieved. Annual Target :15% of the required GPW Information Systems and Digital Services Ecosystem Platform in line with the Disaster Management Act and good governance achieved Reporting Period: Quarterly Quarter 1 Target: Implementation report on the previous financial year produced and submitted to the CEO Quarter 2 Target: 5% of the required capability for the GPW Information system and Digital services Ecosystem Platform in line with Disaster Management Act and good governance achieved Quarter 3 Target: 5% of the required capability for the GPW Information system and Digital services Ecosystem Platform in line with Disaster Management Act and good governance achieved Quarter 4 Target: 5% of the required capability for the GPW Information system and Digital services Ecosystem Platform in line with Disaster Management Act and good governance achieved 33
Branch: Corporate Services, cont.. Audited Performance 2020/21 Audited Performance 2021/22 Audited Performance 2022/23 NO. Outcome Outputs Output Indicators Estimated Performance 2023/24 Medium Term Targets 2024/25 2025/26 2026/27 Security Services 7. Secured GPW Assets, people and information Outputs/key performance areas of the approved security management plan implemented Percentage implementation of the approved GPW security management plan Reviewed GPW security model implemented 100% of approved GPW security model not implemented 50% implementation of the approved security management plan 100% implementation of the approved security management plan 100% implementation of the approved security management plan 100% implementation of the approved security management plan 100% implementation of the approved security management plan Quarterly Target Information for 2024/25 Output Indicator: Percentage implementation of the approved GPW security management plan Annual Target: 100% implementation of the approved security management plan Reporting Period: Quarterly Quarter 1 Target: 100% implementation of the approved security management plan Quarter 2 Target: 100% implementation of the approved security management plan Quarter 3 Target: 100% implementation of the approved security management plan Quarter 4 Target: 100% implementation of the approved security management plan 34
Branch: Corporate Services, cont.. Audited Performance 2020/21 Audited Performance 2021/22 NO. Outcome Outputs Output Indicators Audited Performance 2022/23 Estimated Performance 2023/24 Medium Term Targets 2025/26 2026/27 2024/25 Facilities Management Functional and secure facilities GPW Headquarters building refurbished Percentage completion of GPW s Headquarters building Not achieved. GPW Headquarters building not completed N/A N/A 90% refurbishment of the GPW Headquarters building completed 90% of the GPW Headquarters refurbished Final Account and Close-out of Project (Defects Liability Period) 7. N/A Quarterly Target Information for 2024/25 Output Indicator: Percentage completion of GPW s Headquarters building Annual Target: 90% completion of the GPW s Headquarters building Reporting Period: Quarterly Quarter 1 Target: Project Execution Plan(PEP) developed and submitted for approval Quarter 2 Target: 25% progress completed against the Project Execution Plan Quarter 3 Target: 60% progress completed against the Project Execution Plan Quarter 4 Target: 90% completion of the Headquarters building (Practical Completion Certificate issued) 35
12. GPW Budget 2024/25 NEW ENE PERIOD Description 2024-25 2025-26 2026-27 TOTAL SALES COST OF SALES Employee Benefits Administrative Expenditure Production and Stores Equipment Professional Services Depreciation and Provisions Sundry Expenditure GROSS PROFIT GP % OTHER INCOME SUPPORT EXPENDITURE Employee Benefits Administrative Expenditure Production and Stores Equipment Professional Services Depreciation and Provisions Sundry Expenditure NET SURPLUS/(LOSS) % 1 994 526 1 233 194 184 136 5 190 741 997 1 095 220 172 79 377 1 227 761 332 38,17% 3 396 724 837 255 424 168 734 3 850 5 916 232 196 46 365 12 352 39 891 2,00% 2 104 225 1 249 636 228 632 6 033 777 942 1 204 134 527 95 265 6 033 854 589 40,61% 3 623 816 128 291 598 198 646 4 235 6 685 237 723 67 712 9 529 42 084 2,00% 2 333 014 1 333 500 260 513 6 857 822 168 1 324 121 697 119 527 1 412 999 514 42,84% 3 867 933 390 321 553 222 757 4 659 7 198 277 413 83 924 15 887 69 990 3,00% 37
12.1 Budget Expenditure is projected to increase at an average annual rate of 15 per cent, from R1.5 billion in 2023/24 to R2.3 billion in 2026/27. The entity is set to generate 99.8 per cent (R6.4 billion) of its revenue over the medium term through its business operations; Revenue is expected to increase at an average annual rate of 12.2 per cent, from R1.7 billion in 2023/24 to R2.3 billion in 2026/27; The current discount arrangement between GPW and DHA is not sustainable, therefore tariff increases will be implemented from 1 April 2024; Risks: If the discounts are not addressed, the revenue numbers will have to be reduced; Should National Treasury continue to reject GPW s requests to retain its surplus in order to fund its commitments, this will result in negative cash flows over MTEF. 38
12.2 Revenue A4 ContractPrintCredentialCar General printing Passports IDs XEROGRAPHIC BOND Advertising Exams ds Quantity 2024/2025 484,150,896 2025/2026 510,779,195 2026/2027 538,872,051 1,000,000 2,500,000 292,525,125 308,614,007 325,587,777 1,000,000 380,600,000 401,533,000 423,617,315 168,129,629 177,376,759 187,132,480 170,000,000 179,350,000 189,214,250 134,374,007 141,764,577 149,561,629 12,936,001 13,647,481 14,398,093 351,810,023 371,159,574 391,573,351 Quantity 2024/2025 2025/2026 2026/2027 40
12.4 Revenue Assumptions Passports cost reverts back to the price before the discount structure selling price at 1 April 2024: R450-38 which was the same as in 2020/21 GPW has therefore absorbed significant costs on behalf of DHA; ID s cost reverts back to the price before the discount structure selling price at 1 April 2024: R110-91 which was the same as in 2020/21 GPW has therefore absorbed significant costs on behalf of DHA; A4 Xerographic bond an escalation of 5,5% on the current selling price margins standardized at 23% - supplier input cost has increased significantly; Advertising the automation of the new eGazette system will contribute to healthy revenue figures; Examinations, Credential cards and general printing as variable revenue, a 5,5% increase was introduced on existing prices. 42
12.5 CAPEX Budget 2024/25 CAPITAL EXPENDITURE 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2024/2025 275,000 160,000 75,000 97,667 10,000 20,515 213,200 2025/2026 525,000 100,000 80,000 102,667 5,000 5,000 70,000 2026/2027 585,000 105,000 80,000 97,667 5,000 2,000 200,000 TOTAL 1,385,000 365,000 235,000 298,001 20,000 27,515 483,200 M&E O.Man IT Computer Software Furniture Equipment Lease Improvements M&E O.Man IT Computer Software Furniture Equipment Lease Improvements 44
12.6 Capex Assumptions A new Enterprise Resource Planning (ERP) system will be procured in the new MTEF period at a cost of R100 million over the MTEF; The re-automation of the e-Gazette system will contribute to a healthy financial state over the MTEF cycle; The ICT environment will continue to be enhanced in order to support the overall needs of the organisation. This will include technological refresh, infrastructure replacement and systems upgrade, and priority has been given to the implementation of the Procurement Plan; GPW will continue to focus on the refurbishment of the new headquarters building in the 2024/25 financial year, at an estimated cost of R200 million, and will continue to utilise services of the DBSA as an Implementing Agent; The procurement process for the machinery to print State security documents is on track. The procurement process started in the 2023/24 financial year, and will continue into the 2024/25 financial year. These are capital commitments that GPW will execute through the revenue it generates though the sale of its products to customers. 45
Cost of Employment
12.7 Cost of Employment COE % 4% 26% OCEO MANUFACTURING & ENGINEERING FINANCIAL SERVICES OPERATIONS MANAGEMENT CORPORATE SERVICES 34% 23% 13% 47
Approved Organisational Structure
13. Approved Organizational Structure The reviewed organisational structure has been approved and commenced with implementation in the 2022-23 financial period and has been phased in over a period of 6 years, with the remaining plan rolling over into the next ENE period. YEAR STAFF COMPLIMENT COST OF EMPLOYMENT 000 2024/25 958 R 440 000 2025/26 1077 R 520 695 2026/27 1160 R 582 559 49
Goods & Services
