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Progress on the Turn Around Process 5 June 2013

Discover the progress made in implementing the turn around strategy, including filling vacant posts, updating policies, financial management improvements, SCM turnaround, HR turnaround, and property turnaround.

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Progress on the Turn Around Process 5 June 2013

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  1. Progress on the Turn Around Process5 June 2013

  2. Strategy • Turn Around Strategy developed and approved by Council • All approved vacant post were filled • Updated all old policies and developed new ones • Got approval from the Minister for the relocation of the Head Office to Tshwane • Got approval from MINMEC for the transfer if movable assets to Provinces • Recruited Expert teams to assist cleaning the mess and building capacity of staff • Finance: Altimax • Property: Grant Thornton • Organisational Development: TseboLwazi • Forensic Audit: Uback, they will start in June

  3. Finance turnaround Improved Financial Management • Most of the prior year misstatements which led to the disclaimer reports have been corrected. • The filing system has been improved to enable improved safeguarding of documents and provision of audit trail • Internal controls have been enhanced to enable improved financial management. These control include monthly reconciliations of accounts and Expenditure management. • The financial statements have also been prepared and submitted to the AG and NT by the 31st May. • Project bank accounts have analyzed and reconciled with the bank accounts and liability accounts. The revenue arising from those accounts has also been properly classified according to the relevant GRAP standards. Some of the bank liability accounts have been derecognised. A Public call will be made for the Trust accounts that have been inactive for a long time. • The CFO is currently drafting the Investment Policy which guide the investment opportunities that can be leveraged from the Trust and Donor Funds.

  4. SCM Turnaround • Asset Verifications • Performed a physical verification of all of the entity’s assets. This included all locations in the different provinces. • Identified obsolete assets or assets not in use and wrote them off. • Identified assets that were not on the register and brought them onto the asset register and the trial balance. • Reassessed the useful life of assets written down to R0 which were still in use and prepared a prior period error. • Reassessed the residual and useful lives of all other assets and recorded a change in estimate. • Verified 2011/2012 and 2012/2013 additions per the register to supporting invoices. • Scrutinized expense accounts and identified any additional assets that were not capitalized. • Corrected the depreciation and balance the Asset Register to GL

  5. SCM Turnaround cont. • Irregular and Fruitless Expenditure • The SCM unit was capacitated by contract workers while the organizational design project is in progress. • Irregular and Fruitless expenditure was investigated retrospectively from 2009/10 financial year. This was done through a vigorous review of all the payment batches and all payment . • The prior balances were adjusted to reflect the new cases discovered. • Some of the cases were condoned by Council after thorough analysis of the incidences. • We are currently addressing some of the cases with the responsible managers. It should however, be noted some of the transactions were concluded in the prior years and the responsible managers have left the organization. • We have developed registers for all deviations and report those above R1million to National Treasury and Auditor General. • Contract Management • We have developed a register of all long term contracts. The register is monitored by the SCM manager to monitor contracts that are about to expire. • We are currently correcting all the old contracts that did not have signed agreements. Some of the contracts cannot be immediately terminated as the services are ongoing.

  6. HR Turnaround • Assessed all Personnel files and ensured that all documentations are in the files. This also included developing checklists for each file • To follow up with few where information is still missing • Leave Provisioning:- • All leave have been reconciled and the VIP and ESS system have been upgraded and the data is now reconciled • Filling of vacant Posts: • All approved posts have been filled and also contract workers have been recruited in areas of great need

  7. Property Turnaround • Busy assessing the leases and contracts of all 36 properties • Developing a property strategy that will inform us with regards to the economic values of all these properties • Ensuring that all the tenants pay rentals as per contracts • Issued summons for those still owing SAHRA

  8. Status of our leases

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