Director-General: Mr. E Africa 18 October 2011

DCoG Annual report FY 2010-2011 presentation to the portfolio committee on cooperative governance and traditional affairs Director-General: Mr. E Africa 18 October 2011

OVERVIEW OF THE PRESENTATION • Organisational Structure of the Department • Restructuring Process • Performance of the Department • Financial performance 2010/11 • Disaster Interventions • LGTAS / Outcome 9 • Response to concerns raised by the Portfolio Committee on the Annual Report (AR) FY 2009/2010 • Highlights: Annual Report FY 2010/11 • Summary of Performance: FY 2010/11 • Programme progress against annual targets • Initiatives to address Auditor-General’s findings

OVERVIEW OF THE PRESENTATION • Organisational Structure of the Department • Restructuring Process • Performance of the Department • Financial performance 2010/11 • Disaster Interventions • LGTAS / Outcome 9

MINISTRY COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS INTERNAL AUDIT DEPARTMENT OF TRADITIONAL AFFAIRS DIRECTOR-GENERAL DEPARTMENT OF COOPERATIVE GOVERNANCE DIRECTOR-GENERAL Mr E Africa ANTI CORRUPTION INSPECTORATE CHIEF OPERATING OFFICER Dr KL Sebego BRANCH: PROVINCIAL AND MUNICIPAL GOVERNMENT SUPPORT Acting : Dr KL Sebego BRANCH: INFRASTUCTURE AND ECONOMIC DEVELOPMENT Mr R Hansby BRANCH: POLICY, RESEARCH AND KNOWLEDGE MANAGEMENT SUPPORT Mr T Fosi CHIEF DIRECTORATE: LEGISLATIVE REVIEW AND DRAFTING Ms V Ndah CHIEF DIRECTORATE: COMMUNICATION AND MARKETING Mr B Rakate BRANCH: GOVERNANCE AND INTERGOVERNMENTAL RELATIONS Mr KT Sigidi BRANCH: NATIONAL DISASTER MANAGEMENT CENTRE Acting : Ms M Sethusha BRANCH: CORPORATE AND FINANCIAL SERVICES Mr M Mtythda

RESTRUCTURING PROCESS • Dept embarked on a review of the organisational strategy after the 2009 national elections. • Strategy of the department was aligned to the expanded mandate of the new Department of Cooperative Governance, including the institutionalisation of the project management approach and establishment of provincial offices to enhance service delivery. • The implementation of the new structure is 90% completed. • SMS posts were filled through competitive placements and posts below SMS finalised through matching and placement. • Placement below SMS is 100% completed. • Throughout the process no employee lost their jobs or was in danger of losing their job.

RESTRUCTURING PROCESS cont. • POSTS STATISTICS: • SMS posts filled – 107 • SMS posts vacant – 18 • SMS structure with names (copy attached) • Nr of staff additional to the establishment: • SMS: 32 (current process underway to address this situation) • Level 1-12: 10 (staff appointed on contract for specific projects, i.eMasibambane & EU projects)

Overview of Achievement FY 2010/11 Reasons for non-achievement as disclosed in the Annual Report is mainly due to capacity constraints experienced during this transition period. All the projects that have been partially and not achieved have been catered for in the APP 2011/12 and are currently being implemented 47% 21%

Expenditure Trends :2004/05 to 2010/11 R’000 • The bar chart shows expenditure trends over a period of 7 years. The 2010/11 financial year 99.7% of the Total appropriation was spent.

Financial performance FY 2010/11 • The post of CFO was only filled in January 2011 and that of the Executive Manager Internal Audit and Risk Management was only filled after March 2011; • A functional Audit Committee is in place and chaired by Ms Nonhlanhla Khumalo; • The findings of the AG was a qualification with reasons of incomplete disclosure of irregular expenditure; and • The Department has adopted a post audit action plan after consultation with Executive Managers, a partnership between NT and DCoG is in place to assist with the post audit action plan

Financial performance FY 2010/11 • Acquisition/logistics asset management (intangible assets), Asset management (tangible assets), Financial accounting services (fast), Internal Audit & Risk Management, Information Communication and Business Technologies, human capital management and Irregular expenditure • We are in a process of appointing financial governance Advisor to assist monitoring of the plan • We also initiated processes of strengthening systems and processes of accountability • During the period under review we have undertaken disciplinary actions on irregular expenditure

National State of Disaster declared on 21 January 2011 in 33 District and Metro municipalities in 8 provinces due to flooding and other related incidents following adverse weather conditions • Initial assessments conducted by Provinces and Municipalities estimated damages amounting to R 12 473 694 314 • Response & rehabilitation needs assessments undertaken by the NATJOC teams with the leadership of NDMC • Independent verification & costing (technical assessments), as required by NT, undertaken by professional services providers-verified infrastructural damages amounting to R3 897 083 291 • Priority Sectors identified by IMC for allocation of R 600mil (ring-fenced) for the disaster: Education (Schools, 30%), Transport (Roads & Bridges, 40%) & Human Settlements (Houses, 30%) • As from 1 April 2011, R1,850 billionnew conditional grants funding for immediate disaster needs for both municipalities & provinces over the MTEF period in DORA. R775 mil for 2011/12. (R305m for provinces &R470m for municipalities)

Disaster Intervention

Lessons from disaster • Pointed to key weaknesses & capacity challenges in the implementation of the Disaster Management Act and Framework across the spheres & sectors of government • Challenges to address include credibility of information, quality & timeliness of reports, lack of dedicated capacity for DRM in municipalities & sector dept’s, funding mechanisms provided for in DM Act and Public Finance Management Act not implemented by organs of state • Commitment of sector departments in disaster risk management processes are vital- multi-disciplinary Technical Task Team of the National Disaster Management Advisory Forum in the process of streamlining response actions to ensure rapid and more effective response • Acknowledge the need and importance to invest in disaster risk reduction (DRR) • Need to streamline processes. It should however be noted that the verification & assessment process conducted over the past few months to meet the requirements to submit a request for funding, was done in the shortest period of time since the promulgation of the Disaster Management Act, 2002 also taking into consideration that the disaster covered 8 of 9 Provinces.

LGTAS/OUTCOME 9 • The Delivery Agreement was finalised this year • Politicians and MEC signed performance agreements • The department’s Annual Performance Plan aligned to LGTAS/Outcome 9 • Implementation Forum and Technical Implementation Forum established • Significant progress was made in the following areas: • - CWP • - Noted a fluctuation in vacancies (MM positions etc) • - Access to basic services • - Finalised the MSA by March 2011 • - Significantly improved relationship with NT on key interventions

Response to concerns raised by the Portfolio Committee on the CoGTA Annual Report FY 2009/2010

Response to concerns raised by Portfolio Committee on AR FY 2009/2010

Progress: concerns raised by Portfolio Committee on AR FY 2009/2010

Highlights of the FY 2010/11 • The signing of delivery agreements between the Minister and the MECs as well as Mayors in September 2010; • 89 689 job opportunities were created through the community work programme against a target of 87 000 opportunities; • Progress has been made to enhance the department’s coordination role across the three spheres e.g. through the Legislative Committee were the department is coordinating the identification of all legislation that weakens government’s efforts in service delivery; • The Municipal Systems Amendment Act was finalised; • We worked closely with stakeholders in preparing for elections; • Milestone on the finalisation of the recruitment and placement process; • Disciplinary Regulations and Procedures for S57 Managers Promulgated in February 2011; and • Disaster Management Centres across the spheres of government were activated to coordinate the multi-sector response to the National State of Disaster declared on 21 January 2011 in 8 provinces.

Achievement Status: Summary FY 2010/11 Source: Audited DCoG Annual Report FY 2010/11

Progress against programme deliverables

Progress against programme deliverables Officials in Limpopo Province were trained on the new PMS developed with the DBSA;

Progress against programme deliverables

Response to AG report 2010/11

Conclusion • Major reasons for underperformance in the past financial year was to do with the deep restructuring process which has now been finalised; • In addition to the responses to the AG findings Management has developed action plans to address all issues raised by the AG in order to improve on the performance of the department, the action plans were recently shared with executive Managers at the Departmental Executive Management Committee, Each affected party has been tasked to implement remedial actions outlined in the action plan; and • The Committee will be given regular updates on progress against issues raised by the AG going forward

THANK YOU! Local Government is Everybody’s Business Be Part of IT!

PRESENTATION TO THE PORTFOLIO COMMITTEE ON THE 2010/2011 ANNUAL REPORT FOR THE DEPARTMENT OF TRADITIONAL AFFAIRS • PROF MC NWAILA • DIRECTOR GENERAL • 18 October 2011

PRESENTATION OUTLINE • Purpose of the Presentation • Mission, Vision and Strategic Objectives • Evolution of the Department • DTA performance information: • non financial; and • Financial information • Findings by Auditor General • DTA Post Audit Action Plan • Challenges • Recommendations

PURPOSE OF THE PRESENTATION • To present the DTA Annual Performance for the 2010-2011 financial year in line with Section 40 (1) (e) of the PFMA.

VISION AND MISSION STATEMENT • Vision: A transformed, coherent and cohesive institution of traditional leadership which plays a central role in • traditional affairs and governance and contributes • to rural development. • Mission: To provide coordinated support to the institution • of traditional leadership within the system of cooperative governance by: • 1. Developing appropriate policies and systems; • 2. Establishing structures to enable communities to participate in governance and development processes; and • 3. Promoting social cohesion and preservation of customary law and tradition.

DTA STRATEGIC OBJECTIVES • Strategic Objective One: • To build organizational capacity of the Department of Traditional Affairs and strengthen the capability to deliver on its mandate; • Strategic Objective Two: • To develop, review, monitor and implement legislation policies relevant to traditional leadership nationally; and • To coordinate and monitor the review and implementation of legislation and policies relevant to traditional affairs by national and provincial government departments.

Director-General: Mr. E Africa 18 October 2011