PC Briefing note Transport Portfolio 14 October 2014

1. PC Briefing note Transport Portfolio 14 October 2014

2. Reputation promise/mission The Auditor-General of South Africa has a constitutional mandate and, as the Supreme Audit Institution (SAI) of South Africa, exists to strengthen our country’s democracy by enabling oversight, accountability and governance in the public sector through auditing, thereby building public confidence.

3. Overall regression in audit outcomes Audit outcomes 2013-14: Transport Portfolio Outcomes per audit area Financial statements Compliance with legislation Performance reports

4. Audit outcomes 2013-14: Transport Portfolio Senior management First level Assurance levels Accounting officer/authority Executive authority Second level Internal audit unit Audit committee Third level Portfolio committee

5. Key controls Audit areas Audit outcomes 2013-14: Transport Portfolio Financial statements Performance reports Compliance with legislation

6. Audit outcomes 2013-14: Transport Portfolio Risk areas Quality of submitted financial statements Quality of submitted performance reports Supply chain management Human resource management Information technology Financial health

7. Audit outcomes 2013-14: Transport Portfolio Most common root causes Key officials lack appropriate competencies A root cause at auditees 6 Slow response by management A root cause at auditees 6 Instability or vacancies in key position A root cause at auditees 4 Improved Unchanged Regressed

8. Audit outcomes 2013-14: Transport Portfolio Status of key commitments by minister (1) Review governance structures and strengthening oversight at Public Entities. (2) To meet regularly with the chairpersons of the boards and audit committees of public entities. (1) Implementation of the action plan to address the prior year audit findings; (2) Managing the take over of major IT related contracts; (3) Management of vacancies; (4) Contract management over all entities in the portfolio; and (5) Enhance performance and consequence management In progress Implemented

9. Oversight model OVERSIGHT: Parliament, provincial legislature or municipal council • Identify desired impacts Assess and adjust Specify performance indicators Monitor and take Set targets corrective action and allocate resources Policy development Strategic Planning Operational planning and budgeting Accountability INSTITUTION National department Provincial department Municipality Public entity Municipal entity End-year reporting Implementation and in-year reporting

10. How does clean administration improve service delivery Creating a better and dignified life for the citizens of South Africa through timely effective, efficient and economical SERVICE DELIVERY

11. Considerations for Portfolio Committees when dealing with performance monitoring • Is the Strategic Plans and Annual Performance Plans for entities aligned to the National Development Plan • Does the entity have adequate resources (human and financial) available to achieve predetermined objectives • Are the targets realistic (can it be done) • How are the entities ensuring that Strategic Plans and Annual Performance Plans will be achieved (performance contracts, quarterly monitoring, etc.) • The Portfolio committee should review the quarterly progress of entities with regard to predetermined objectives and contributions to NDP • The Portfolio committee should review annual achievement of predetermined objectives by entities (Annual Reports)

12. Commitments required from Portfolio Committee • Monitor vacancy management in Portfolio to ensure all key posts ate filled with appropriately skilled and competent people in a timely manner • Monitor implementation of action plans to improve audit outcomes regularly • Monitor process to transfer e-Natis system from the service provider • Request regular feedback from the Department on key issues impacting entities in the Portfolio as identified through the oversight process.

13. Questions