Download
1 / 48
480 likes | 499 Views
2014/15 – 2018/19 Strategic Plan & 2014/15 Annual Performance Plan. Content. Compliance Statement Presentation of Strategic Plan Recommendations. Compliance Statement.
E N D
2014/15 – 2018/19 Strategic Plan & 2014/15 Annual Performance Plan
Content • Compliance Statement • Presentation of Strategic Plan • Recommendations
Compliance Statement • In terms of Section 55 (2) (b) and Section 56 of the Constitution, the National Assembly must provide mechanisms to maintain oversight of any organ of state and may summon/require any institution to report to it. • The IDT, a Schedule 2 Public Entity, under the Separtment of Public Works is thus: • Presenting its 2014/15-2018/19 Strategic Plan and 2014/15 Annual Performance Plan (APP) to enable the Portfolio Committee to exercise oversight and to recommend the same to Parliament • Reporting that the Strategic Plan and APP was: • Lodged with the Executive Authority and National Treasury on 26 February 2014; • Approved by the Minister on 12 March 2014 as evidenced by the Foreword, Official Sign-off and Shareholder Compact • Submitted to Parliament .
Strategic Plan: Table of Contents (1) • Foreword: Executive Authority • Official Sign-off • Statement: Board Chairperson • Part A: • Vision • Mission • Our Approach • Values & Operating Principles • Legislative and other mandates • Legislative mandates • Policy mandates • Situational analysis • Performance Environment • Organisational Environment • Key Issues relevant to the IDT • Description of the Strategic Planning Process
Strategic Plan: Table of Contents (2) • PART B: STRATEGY • Strategic Goals • Strategic Vision Implementation • Key Performance measures & Indicators • Governance Structures • PART C: LINK TO OTHER PLANS • Financial Plan • Risk Management Plan • Fraud Prevention Plan • Materiality and Significance framework • Environmental Plan • Communications Plan • Information Technology Management Plan • Knowledge Management Plan
Strategic Plan: Table of Contents (3) • APPENDICES • 2014/15-2016/17 Budget Framework • 2014/15-2018/19 Corporate Business Plan • 2014/15 Annual Performance Plan • Shareholder Compact • High Level Organogram
Foreword: Executive Authority • Asserts that IDT’s Strategic Plan underscores the importance of infrastructure in fostering shared prosperity by all. • Highlights IDT’s role within the mandate of the Department of Public Works, acknowledging IDT niche in managing the delivery of social infrastructure programmes. • Demonstration of IDT’s value-add to national development effort: agency has delivered programmes worth approximately R20.25 bn over the past 10 years. • Shows the IDT’s alignment to the national priority outcome areas, the National Development Plan and responds to government’s policy towards creating a South Africa that knows no poverty. • Emphasises IDT’s commitment to be a relevant, effective and financial viable development agency that delivers programmes that make meaningful impact on the life of the country’s citizens.
Official Sign-Off • Certifies that the 2014/15- 2018/19 Strategic Plan and 2014/15 Annual Performance Plan • Was developed by management of the IDT and approved by the Board of Trustees under the guidance of the Minister of Public Works; • Is informed and aligned to the mandate and priorities of the Executive Authority, the Department of Public Works. • Takes into account all the relevant policies, legislation and other mandates for which the IDT is responsible; • Takes cognisance of the resources available to the IDT and its operating environment; and • Accurately reflects the strategic outcome oriented goals and objectives which the IDT will endeavour to achieve during the 2014/15 financial year.
Statement: Board Chairperson • Points that the strategic direction adopted in the IDT Strategic Plan is aimed at building an IDT which: • Has the capacity to deliver a distinctive value proposition which measurably advances the national development policy objectives; • Can address the development gap that has continued to undermine government’s development policy objectives; and, • Is financially viable and organizationally sustainable. • Acknowledges role played by the Public Works Minister and the Deputy Minister, the DG and the Senior Management team, the National Treasury, the IDT’s Board of Trustees and Executive Management in finding a solution to IDT’s long-term sustainability. • Recognises that the organisation attained its eleventh (11th) successive unqualified audit report for 2012/13 financial year. • Board remains forward looking and positive that the long-awaited solution to IDT’s continuity is at hand. • The Board of Trustees further commits itself to give management total support in the implementation of the Strategic Plan.
Vision, Mission & Approach • Vision: A leading public sector programme management agency. • Mission: The IDT manages and delivers integrated social infrastructure programmes on behalf of government. • Our Approach: The IDT’s approach to social infrastructure development entails all the necessary measures, facilities and networks required to prepare communities to initiate, receive, own, manage and sustain their own development.
Legislative and other mandates (1) • The 1997 Cabinet mandate is still in place, that is: “The IDT must be transformed into a government development agency that will implement projects which are commissioned by government departments.” • Integrated into the public sector delivery system in 1999 with the promulgation of the PFMA and listed as a Schedule 2 Major Public Entity. • Reports to the Minister of Public Works who is the Executive Authority and the Shareholder Representative. • The IDT seeks to contribute towards the mandate, vision and strategic objectives of the Department of Public Works (DPW), and to advance the: • National Development Plan • National priority outcomes • National Infrastructure Plan • New Economic Growth Path
Legislative and other mandates (2) • Shareholder Compact • Relevant Programmes of DPW • Programme 1: Administration • Programme 2: Immovable Assets Investment Management • Programme 3: Expanded Public Works Programme (EPWP) • Contribution to National Strategic Outcomes • Outcome 1: Improved Quality of Basic Education • Outcome 2: A long and healthy life for all South Africans • Outcome 4: Decent employment through inclusive economic growth • Outcome 5:A skilled and capable workforce to support an inclusive growth path • Outcome 7: Vibrant, Equitable and Sustainable Rural Communities and Food Security for all • Outcome 8: Sustainable human settlements and improved quality of household life • Outcome 10:Environmental assets and natural resources that are well protected and continually enhanced. • Outcome 12: An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship • The IDT’s contribution in these areas directly supports the Department of Public Works in its Medium-Term Strategic Framework (MTSF) priorities in the areas of social infrastructure delivery, job creation, transformation of the construction industry and skills development.
Situational Analysis: Performance Environment • In the last 10 years the IDT delivered programmes worth approximately R20.25 bn. Of which 85-95% was social infrastructure development. In the 2012/13 financial year programs to the value of R5.6bn and in 2013/14 program delivery exceeded R6.3 bn. • The IDT implements programmes directed at community development by integrating social infrastructure outputs with long-term impact and sustainable development goals. • The IDT’s key service offering is social facilitation delivery; the IDT’s approach seeks to facilitate acceptance and ownership of government’s development. Programmes by emdeding participation of communities in im • The IDT is committed to making direct contribution to the achievement of Government’s Strategic Outcome 12 which has been translated by the Department of Public Works to mean “SERVICE DELIVERY QUALITY AND ACCESS TO GOVERNMENT SERVICES”.
Situational Analysis: Key Issues • The environmental scan highlighted the following areas as pertinent to the IDT’s corporate strategy: • Persistent poverty and inequality • Unemployment, especially amongst none graduate out-of-school youth and young adults • Social Infrastructure backlogs despite massive investments by government. • Local government service delivery challenges • Rural-to-urban migration, land reform and post-settlement support • Changes in and perceived conflicts in instruments meant to promote affirmative action towards empowerment of the previously disadvantaged
Strategic Planning Process • Strategic Planning, and performance monitoring and reporting, is an institutionalised business process in the IDT. • It is an iterative annual process • May: The Board is presented with the framework for the strategic planning process for approval • June: Consolidate research • July-August: Develop and present strategy proposals to the Board for approval • June- July: MTEF Submission • August-October: Develop draft Strategic Plan, Unit Business Plans and Sub-Unit Work Plans • August-October: MTEF meetings & presentations • November-December: Draft Strategic Plan, APP & Budget recommended to the Board • January-February: Finalise, approve and submit Unit Business Plans & Budgets; and the Strategic Plan, APP & corporate Budget
Strategic Goals • The Strategic Goals articulates the IDT’s responsibility to promote sustainable development in poor and marginalized areas through delivery of integrated social infrastructure. The institution aims to achieve these Strategic Goals by using resources in a prudent and efficient manner.
Strategic Vision Implementation • IDT is a major public entity and development agency which has to: • Create value in the lives of the people of South Africa. • Ensure that it delivers high quality service and sustainable development in a cost effective way. • Remain relevant in the South African development landscape, • Find innovative and sustainable solutions to the development challenges facing the country as identified in the National Development Plan and other key policy instruments. • The strength of the IDT lies in its ability to deliver quality social infrastructure through its niche in programme management. The results of the scan suggest that the IDT will deliver meaningful value to government through cost-effective delivery of programmes, in such a manner that key development objectives of job creation, shared prosperity and skills development are an integral part of addressing the social infrastructure and social development backlogs. This will be achieved through the continued application of IDT’s integrated service delivery model.
Key Performance Measures & Indicators (1) • Corporate Business Plan and the 2014/15 APP reflected in Appendix 2 and 3. Delivery of these pre-determined targets hinges on a number of assumptions and dependencies: • Value and delivery of Business Portfolio: The IDT is required to generate its own business portfolio. However, the speed at which agreements are concluded as well as the frequency and values of funds transferred is not entirely within the control of the organisation and delays impact on delivery. Associated indicators and targets assume that agreements are concluded before the start of and or early in the financial year and that clients will transfer funds as stipulated in the agreements. • Management Fees: Is negotiated with clients and stipulated in agreements. In order to remain a going concern, the minimum average management fee which the IDT can consider is 7.0% and any amount lower than 7% will jeopardise the organisation’s going concern status. In addition, if clients do not make the funds available for the IDT to deliver, the organisation’s collection of management fees will be compromised.
Key Performance Measures & Indicators (2) • Going concern: It assumes that the operation will be able to continue trading for a minimum of 24-months. Unforeseen cash flow challenges may jeopardise the organisation and thus could have devastating impact on the delivery of approximately R20bn programmes over the planning period. • Certainty of mandate and long-term sustainability: The Shareholder has undertaken to formally consider and provide certainty on the organisation’s mandate and long-term sustainability. The uncertainty, which had prevailed for a number of years, negatively impacts client confidence, organisational culture and staff morale, which in turn is reflected in business generation, productivity and delivery capacity. • Attract and Retain Right Skills: The on-going uncertainly has increased the risk of flight of skills resulting in a high vacancy rate of between 17% in 2013/14. This impacts the organisation’s ability to recruit and retain appropriate skills. Client confidence is enhanced by the organisation’s ability to deploy appropriate competencies to manage programmes.
Governance Structures • Shareholder Compact: Between the Executive Authority and Accounting Authority • Board of trustees and its Committees: • Strategic Planning and Programmes Committee • Human Resources and Corporate ServicesCommittee • Audit and Risk Committee • Finance Committee • Board EXCO (also acts as Remuneration Committee ) • Executive Management: Comprising Executive Heads mostly reporting to the Chief Executive Officer (CEO), providing leadership to • Operations (Ops) • Development Services Unit (DSU) • Corporate Services Unit (CSU) • Financial Services Unit (FSU) • Office of the CEO (OCEO)
Strategic Choices • Having taken note of the realities of IDT’s operating environment, the Board decided that IDT’s 2014/15-2018/19 Corporate Strategy should be guided by the following imperatives: • The current strategy as reviewed in 2013/14 to accentuatefocus on social infrastructure programme delivery, vision, mission, strategic outcomes and strategic objectives are still relevant, and thus the need to retain the same; • The IDT’s commitment to advancing the recommendations and targets of the National Development Plan should be demonstrated in the Strategic Plan; • The organisation should align investment in the following to available human and financial resources, and risk profile: • Portfolio growth • Strengthen programme management to assert the distinctiveness of the IDT’s mandate and approach by:
Strategic Choices • Reviewing the structure to undertake capacity and efficiency adjustments. • Building and retaining high-performing talented fit-for-purpose professionals. • Pursuing process and system efficiency interventions. • Research should be focussed to the niche areas necessary to improve organisational performance and contribute to built environment sector development. • Communication should focus on strategic positioning through inter-alia packaging the success stories and knowledge generated. • Implement targeted cost-containment measures alongside a sustainable increase in management fees.
Financial Challenges and Risks • The greatest challenge that faces the IDT is the uncertainty surrounding the financial sustainability of the organisation. • Treasury has allocated R50m per year for the 2013/14 to 2015/16 financial years. The funds have been allocated on condition that “the Independent Development Trust will develop and submit a restructuring plan to the National Treasury…”. • The Business Case (the plan referred to by Treasury) is being prepared in conjunction with the Department of Public Works. The plan will address, inter alia, the issues of: • The structure, form and resourcing required for the organisation in order for it to become self-sustainable over the MTEF period; • The clearly identified target market for the organisation; • The management fees structure required to provide for the funding of the organisation.
Financial Challenges and Risks • It is crucial that the Shareholder addresses the financial sustainability challenge that has faced the IDT to ensure that it continues to play a meaningful role in the delivery of infrastructure and general national development. • The value of programme implementation agency agreements (PIA) or memoranda of agreements (MOA) signed for future implementation is currently in excess of R 20 billion. These programmes are to be implemented over the next three years. This would represent a significant risk to the relevant departments and service delivery to communities should the IDT not be able to implement their programmes.
Integrated Development Approach IDT leverages social infrastructure delivery so that development results stretch beyond mere provision of facilities. IDT’s programmes ensure integrated development and empowerment of communities. Community Development (Social & Cultural capital) Enterprise Development Basic/Core Services (Economic & Financial capital) Building vibrant communities (Human capital e.g. health, education) Institutional Capacity Infrastructure Support (Institutional & Political capital) (Physical & environmental capital)
Budget 2014/15 & Forecast • 2014/15 – 2016/17 Budget • The Business Plan for the financial years 2014/15 to 2016/17 shows steady growth in its programme delivery as opposed to the quantum growth rate of the past 3 years. • Between the 2010/11 and 2012/13 programme delivery grew from R 2.2 billion to R 5.6 billion • Growth is predicted to reach R 7 billion to R 8 bn. over the next three years . • Increase in level of management fees to ensure longer-term financial viability. However this action has met resistance from a number of client departments, hence the Practice Note requested from National Treasury is necessary. • Late transfer of programme funds – from which management fees are drawn - exacerbate the financial situation of the IDT. • Cost containment strategy implemented to closely monitor and contain costs.
Income • The IDT has two sources of income: • Management fees: • Management fees charged to client departments constitutes the major source of its income. The level of fees budgeted/projected at 4% during the 2013/14 financial year and management has implemented a process to increase the average level of fees to 6.3% over the budget year. The level of fees will be further increased over the outer years. • Investment income: • Earned from the investment fund. • The Fund has declined over years as it has been used to fund the IDT’s operational costs; and, • The reduction in the level of interest rates together with the decrease in the capital invested has resulted in the investment income being reduced significantly over the past few years.
Risk Management and Fraud Prevention Plans • Risk Management Plan • Audit and Risk Committee (ARC): Overall responsibility to ensure that the organisation has identified the key risks and that a strategy to manage those risks is implemented. • Risk Management Committee: Chaired by the CEO and reports to the ARC. Responsible for reviewing the Risk Management Strategy • Compliance and Risk Office responsible for constant monitoring and reporting, as well as testing compliance with legislation • Fraud Prevention Plan • Due to the nature of the IDT’s business, where volumes and financial value of projects continue to rise, fraud risk is considered to be very critical and as such it has been elevated to be part of the IDT’s strategic risks. • The Plan comprises a fraud prevention strategy and policy, which is reviewed annually to incorporate emerging best practice and trend analysis such as profiling, for identifying areas where fraud and corruption are most likely to occur, and effecting appropriate control measures • IDT operates an externally managed hotline for the reporting of fraud and corruption, and also makes use of forensic expertise for the investigation of reported cases when such intervention is required, in addition to its Internal Audit services.
Materiality and Significance Framework • For purposes of material [sections 50(1), 55(2) and 66(1) of the PFMA] and significant [section 54(2) of the Act], the Accounting Authority must develop and agree a framework of acceptable levels of materiality and significance with the relevant Executive Authority in consultation with the Auditor General. • After consultation with the AG, the Materiality and Significance Framework was approved to the Accounting Authority. • Materiality and Significance Framework Slides.pptx
Environmental and Communication Plans • Environmental Plan • Environmental management is a cross-cutting issue, with internal and external focus • Internal perspective: Concerned with the extent to which the organisation behaves in an environmentally friendly manner, e.g. light bulbs used, sorting of waste, paper recycling and energy savings, etc. • External perspective: Concerned with the extent to which programme management and project implementation are environmentally friendly. Includes building processes, practices and materials used in the construction as well as promoting environmental awareness in the communities we operate in. • Communications Plan • To ensure constant and consistent engagement with the IDT stakeholders and staff . • Aims to integrate all branding and marketing related functions such as Stakeholder Engagement, Client Relations, Public Relations, and Corporate Communications in support of the overall sustainability of the IDT.
IT Management Plan and Corporate Knowledge Strategy • IT Management Framework (ITM) • IT Plan focuses on migrating the IDT to Cloud computing which will create a more secure, reliable, portable and scalable IT architecture. • The objectives of the ITM Framework are as follows: • Provide the IDT with an adequate Information Management & Technology Platform; • Increase the efficiency, seamlessness and integration of internal processes (e.g. HR; Finance; Performance Information Management; Knowledge management; and, monitoring and evaluation); • Provide an effective, efficient and reliable internal and external electronic communications, through the use of the IDT’s network infrastructure; • Provide support to address all client needs to ensure client satisfaction. • Knowledge Management Plan • Corporate Knowledge Management Strategy (CKS): Promote knowledge-driven development practice and innovation; maximize the impact of development interventions in support of the national strategic priorities and the realization of the organisation’s corporate goals. • Through the CKS, the IDT is building systems to promote a vibrant culture of documenting, sharing, learning and mainstreaming of knowledge-driven development practice and innovation to support operations.
Human Resources Strategy • The HR Strategy aims to facilitate effective resourcing of the organisation through efficient people planning, people management and people development strategies; and, to ensure that the IDT can at all times attract, retain and develop the best available skills such that it is able to deliver on its mandate. • Current establishment at 441; staff occupancy at 83% (17% vacancy level). Refer to High Level Organogram. • The IDT plans to embark on a refocus and streamlining process to address its financial solvency challenge but most importantly to improve the service offering of the organization and safeguarding performance on obligations to clients. This process includes a structure review aimed at achieving among other, the following goals: • To increase the built environment technical capacity in order to strengthen social infrastructure programme management while reducing the social and community development staff contingent as part of de-investment in functional areas not aligned with the new mandate • To bring about a healthy balance in the ratio of core and support staff through increasing the total direct programme staff while reducing staff in administration, corporate services and governance positions • To increase capacity at regional level and reduce staff at head office, thus address the top heavy concern visible in the existing structure
2014/15 APP OVERVIEW • APP confirms IDT’s • Alignment to the DPW’s mandate and Strategic thrust. • Focus on making meaningful impact through social infrastructure programme delivery on behalf of government. • Focus on addressing key development challenges: • Crumbling social infrastructure • Poverty, unemployment and inequality • APP contains 21 Targets: • 11 communicating IDT’s relevance to the national development effort • 12 confirming IDT’s resolve to be an effective, efficient, compliant and viable programme implementing entity
Recommendations • That the Portfolio Committee on Public Works • Recommends to Parliament the IDT’s • 2014/15-2018/19 Strategic Plan, • 2014/15 – 2016/17 Budget, and • 2014/15 Annual Performance Plan; and • Sustains its support for the long-term sustainability of the IDT such that the organisation can maintain and accelerate its distinctive role in delivering social infrastructure in the most marginalised communities on behalf of government.
