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Department of Defence 1 st Quarterly Financial and Non-Financial Performance Report FY2015/16

Department of Defence 1 st Quarterly Financial and Non-Financial Performance Report FY2015/16. Presentation to the PCD&MV 26 August 2015. AIM.

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Department of Defence 1 st Quarterly Financial and Non-Financial Performance Report FY2015/16

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  1. Department of Defence1st Quarterly Financial and Non-Financial Performance ReportFY2015/16 Presentation to the PCD&MV 26 August 2015

  2. AIM To present the Department of Defence (DOD)1st Quarterly Financial and Non-Financial Performance Report for FY2015/16 to the Portfolio Committee of Defence and Military Veterans (PCD&MV). RESTRICTED

  3. SCOPE • Legislative Requirements • Part 1: Non-Financial Performance Information (Incl Significant Achievements) • Part 2: Financial Performance Information RESTRICTED

  4. LEGISLATIVE REQUIREMENTS • In terms of Section 38(1) (a) (i) and (ii), of the Public Finance Management Act (PFMA), Act 1 of 1999 as amended, the “Accounting Officer for a department must ensure that the department has and maintains effective, efficient and transparent systems of financial and risk management and internal control; and a system of internal audit under the control and direction of an audit committee”. • The Treasury Regulations, par 5.3.1 states that, “the accounting officer of an institution must establish procedures for quarterly reporting to the executive authority to facilitate effective performance monitoring, evaluation and corrective action”. • The Framework for Strategic Plans and Annual Performance Plans, states that the quarterly report “provides the Accounting Officer with an opportunity to indicate measures that will be taken to ensure that implementation of the Annual Performance Plan remains on track” and that quarterly reports must be submitted to the National Treasury and the Auditor-General for auditing purposes. RESTRICTED

  5. Part 1: Non-Financial Performance Information RESTRICTED

  6. SUMMARY OF QUARTERLY PERFORMANCE TARGETS Red High risk / certainty (major action is required) Amber Moderate risk (remedial/corrective action required) Green Low risk / on course (No major action is required) 6 RESTRICTED

  7. SUMMARY OF QUARTERLY PERFORMANCE TARGETS The following Administration Sub-Programmes are reported-on under the Defence Secretariat: • Departmental Direction • Government Information Technology Officer (GITO) • Policy and Planning • Financial Services • Human Resource Support Services (Shared Staff) • Legal Services (Shared Staff) • Inspection Services (Internal Audit) • Acquisition Services (Defence Matériel) • Communication Services (Head of Communications) • Defence International Affairs 7 RESTRICTED

  8. SUMMARY OF QUARTERLY PERFORMANCE TARGETS The following Programmesare reported-on under the SANDF: Administration (exclDef Sec sub-programmes) Force Employment Landward Defence Air Defence Maritime Defence Military Health Support Defence Intelligence General Support 8 RESTRICTED

  9. SUMMARY OF QUARTERLY PERFORMANCE TARGETS Defence Secretariat RESTRICTED 9

  10. SUMMARY OF QUARTERLY PERFORMANCE TARGETS RESTRICTED 10

  11. SUMMARY OF QUARTERLY PERFORMANCE TARGETS RESTRICTED

  12. SUMMARY OF QUARTERLY PERFORMANCE TARGETS RESTRICTED

  13. SUMMARY OF QUARTERLY PERFORMANCE TARGETS RESTRICTED

  14. SUMMARY OF QUARTERLY PERFORMANCE TARGETS Serial 10. Lack of evidence to indicate that risk management forms part of all management meetings and is included in management’s performance agreements – DOD to establish risk tolerance parameters. Serial 11. Action plans are in place where partial / non-compliance results were received in order to improve on results for MPAT 1.5. RESTRICTED

  15. SUMMARY OF QUARTERLY PERFORMANCE TARGETS RESTRICTED

  16. SUMMARY OF QUARTERLY PERFORMANCE TARGETS Serial 14. This indicates the percentage of invoices paid in time, as prescribed by the PFMA and Treasury Regulations. Legitimate invoices exclude the following: Where discrepancies exist between delivery notes and invoices; Logistical Receipt Vouchers are not timely generated; and Suppliers not registering on the DOD Database or not making their banking information visible. DOD uses several parallel logistic information systems which do not integrate with FMS making it difficult to track invoices from receipt to payment. RESTRICTED

  17. SUMMARY OF QUARTERLY PERFORMANCE TARGETS Serial 16. The Human Resource Development Strategy (HRD) is being revised to ensure alignment to the Defence Review. Process: 1). DOD HRD Strategy Framework 2). DOD HRD Strategy 3). DOD HRD Strategy Implementation Plan. Serial 17. Policy on National Youth Service was discontinued as per C SANDF Instruction - SANDF/C/302/2 dd 02 Dec 13. Sec Def instructed that roles and responsibilities be attended to between departments ito MoU – DOD to report on progress made during the next quarter. RESTRICTED

  18. SUMMARY OF QUARTERLY PERFORMANCE TARGETS Serial 18 & 19. Stated in APP as 294 SMS members. Quarter 1 = 299 SMS members. Serial 19. The coordination process by Services and Divisions delays the timely submission of Performance Agreements. RESTRICTED

  19. SUMMARY OF QUARTERLY PERFORMANCE TARGETS Serial 21. The complexity of some cases required more time for finalisation. RESTRICTED

  20. SUMMARY OF QUARTERLY PERFORMANCE TARGETS RESTRICTED

  21. SUMMARY OF QUARTERLY PERFORMANCE TARGETS Serial 26. 3 x cases finalised during the quarter (2 x settled in favour and 1 x win) out of 19 x cases received (16 x cases are still ongoing). RESTRICTED

  22. SUMMARY OF QUARTERLY PERFORMANCE TARGETS RESTRICTED

  23. SUMMARY OF QUARTERLY PERFORMANCE TARGETS Serial 28. Defence Intangible Capital Assets Management Policy was promulgated on 31 July 2014 – currently being reviewed to align with National Policy. RESTRICTED

  24. SUMMARY OF QUARTERLY PERFORMANCE TARGETS RESTRICTED

  25. SUMMARY OF QUARTERLY PERFORMANCE TARGETS RESTRICTED

  26. SUMMARY OF QUARTERLY PERFORMANCE TARGETS Serial 33. The policy “South Africa’s Policy of Defence External Relations”, which was promulgated on 12 September 2001, is under review. The policy will be renamed as the “DOD International Affairs Policy” and not the “Defence Foreign Relations Policy” as reflected above. RESTRICTED

  27. SUMMARY OF QUARTERLY PERFORMANCE TARGETS RESTRICTED

  28. SUMMARY OF QUARTERLY PERFORMANCE TARGETS SANDF RESTRICTED 28

  29. SUMMARY OF QUARTERLY PERFORMANCE TARGETS Serial 3. Percentage compliance with SANDF Battle fitness could not be finalised due to the long process of verifying and consolidating results received from Services. The verification of the percentage compliance with SANDF Battle fitness will be confirmed during the second quarter as part of the validation of the actual output for quarter 1. RESTRICTED 29

  30. SUMMARY OF QUARTERLY PERFORMANCE TARGETS 30 RESTRICTED

  31. SUMMARY OF QUARTERLY PERFORMANCE TARGETS Serial 7. Invoices for June 2015 are received in July 2015 and is therefore not paid in the first quarter. 31 RESTRICTED

  32. SUMMARY OF QUARTERLY PERFORMANCE TARGETS 32 RESTRICTED

  33. SUMMARY OF QUARTERLY PERFORMANCE TARGETS Serial 14. This exercise was cancelled due to delays on scientific research by Protechnik Laboratories and the subsequent unavailability of equipment and research work for field evaluations. This activity will be rescheduled for later in the fin year. 33 RESTRICTED

  34. SUMMARY OF QUARTERLY PERFORMANCE TARGETS Serial 18. Further 144 members that were trained to be validated and verified before it can be reported on. 34 RESTRICTED

  35. SUMMARY OF QUARTERLY PERFORMANCE TARGETS Serial 19. The target is further demand driven. The refurbishment of 1 and 2 Military Hospitals has impacted on health care service delivery as some specialist services had to be outsourced. The shortage of some specialist health care services, ie gynaecology and obstetrics. The structure of the SAMHS is not aligned with the dual demands for health services and simultaneously providing health care to internal and external missions. The SAMHS relies in many instances on the services of community service health care practitioners. Serial 20. The slow delivery of pharmaceuticals and medical consumables by the respective suppliers is a national challenge. In many instances not all pharmaceuticals are available. The lead time for suppliers to deliver has increased from six weeks to three months. The SAMHS Procurement Unit had to wait for the proprietary contracts to be finalised. The funds for pharmaceuticals and medical consumables will not be sufficient for the remainder of the financial year. Serial 21. Several courses that would have taken place at the Military Health Training Formation, School for Military Training, had to be rescheduled. 35 RESTRICTED

  36. SUMMARY OF QUARTERLY PERFORMANCE TARGETS 36 RESTRICTED

  37. SUMMARY OF QUARTERLY PERFORMANCE TARGETS Serial 25. The National Codification Bureau is not structured, therefore not staffed to handle the total amount of codification requests. Approval has been given by C Log to continue with the NCB structure development. 37 RESTRICTED

  38. SUMMARY OF QUARTERLY PERFORMANCE TARGETS 38 RESTRICTED

  39. SUMMARY OF QUARTERLY PERFORMANCE TARGETS Overall Progress Total: 75% achieved for 1st quarter RESTRICTED 39

  40. SIGNIFICANT ACHIEVEMENTS During the period under review, the Secretary for Defence (Accounting Officer): Provided strategic direction to the DOD through various governance activities and interventions. These included timeous decision-making on strategic matters, effective management and processing of documents, attendance of Director-Generals meetings and chairing of DOD command bodies meetings. Ensured that the DOD maintains and implements all the Minister, Cabinet, Parliamentary and Cluster decisions, applicable to the DOD for accountability purposes. 40 RESTRICTED

  41. SIGNIFICANT ACHIEVEMENTS During the period under review, the Chief of the SANDF: Ensured the preparation and employment of forces in in pursuance of set missions. The SANDF continued to play a pivotal role in pursuance of Government's support for peace, security and stability in the region and the continent. 41 RESTRICTED

  42. SIGNIFICANT ACHIEVEMENTS (Policy and Planning) • Presentation of the DOD Planning Instruments for 2015 (DOD Strategic Plan (SP) 2015 – 2020 and DOD Annual Performance Plan (APP) for 2015) to the Portfolio Committee on Defence and Military Veterans (PCD&MV) during April and May 2015. • The Draft DOD Annual Report (Performance Information) for FY2014/15 was compiled and presented to the Audit Committee on 26 May 2015. The signed- off report was submitted to Auditor-General South Africa (AGSA) on 28 May 2015. • The DOD 4th Quarterly Performance Report was compiled, approved and submitted to the Executive Authority, National Treasury, Department Planning, Monitoring and Evaluation (DPME) in the Presidency and AGSA on 29 May 2015. The report was also presented to the Portfolio Committee on Defence and Military Veterans (PCD&MV) on 27 May 2015. RESTRICTED

  43. SIGNIFICANT ACHIEVEMENTS (Financial Services) All legislative reports were submitted in time, which included the Early-warning Reports, Unaudited Annual Financial Statements for both the General Defence Account and the Special Defence Account and Legislative Compliance Certificates. 43 RESTRICTED

  44. SIGNIFICANT ACHIEVEMENTS (Legal Services) Extensive legal negotiation support was provided iro cooperation with international, regional and sub-regional organisations (e.g. the United Nations (UN), the African Union (AU) and the Southern African Development Community (SADC), as well as foreign armed forces e.g. Ex IBSAMAR (India and Brazil) and Ex ATLASUR (Brazil and India). Shared Staff RESTRICTED

  45. SIGNIFICANT ACHIEVEMENTS (Acquisition Services) The first of two harbour tug boatsfor the SA Navy was completed and delivered to Simon’s Town during the first week of July 2015. Construction of the second tug boat is progressing very well with delivery expected early in 2016. RESTRICTED

  46. SIGNIFICANT ACHIEVEMENTS (International Affairs) The Defence International Affairs Division has managed to render policy advice to the DOD where applicable and was instrumental in convening bilateral staff talks and participated in multilateral defence and security fora, as well as negotiated bilateral defence co-operation agreements with other states. RESTRICTED

  47. SIGNIFICANT ACHIEVEMENTS (Human Resources) • National Youth Service (NYS). • The DOD support to the Department of Rural Development and Land Reform (DRDLR) was successfully coordinated during the first NYS Intake (1/2015). • A total of 574 youth participants completed the Youth Leadership Development Programme (YLDP) at 3 SAI Bn on 12 Jun 15. Shared Staff RESTRICTED

  48. SIGNIFICANT ACHIEVEMENTS (Force Employment) • Successes 1st Quarter • Weapons Recovered - 22 • Illegal Foreigners Apprehended - 2 755 • Criminals Arrested - 199 • Stolen Vehicles Recovered - 25 • Dagga Confiscated - 2 375Kg • Live-stock Recovered - 45 • Copper Confiscated - 30Kg • Contraband Goods Confiscated - R13 985 430 • Drugs confiscated • Mandrax - 259 • Ecstacy - 776 • Tik - 48 RESTRICTED

  49. SIGNIFICANT ACHIEVEMENTS (Landward Defence) Rural Development Pilot Project. The SA Army was invited by the Member of the Executive Council for Rural, Environmental and Agricultural Development of the North West Province to attend her Departmental Budget Policy Speech at the North West Legislature in Mmabatho on 12 May 15. The partnership with the SA Army concerning the Rural Development Pilot Project in the North West Province was announced in her speech and this will be addressed by drafting a Memorandum of Understanding between the SANDF and the Provincial Government of the North West Province. RESTRICTED

  50. SIGNIFICANT ACHIEVEMENTS (Landward Defence) Op THUSANO. A contract to provide professional and technical services by the Cuban Defence Force to the SANDF was signed by C SANDF. The scope of the service included training of technicians in the disciplines of transport techniques, technical assistance with the organisation of the system of technical security, technical assistance with the deactivation of war material, technical assistance with the preservation of war material and repair and maintenance services of transport technology. Significant successes were clearly evident in the 651 various Samil type, Casspir, Mamba and Mfezi vehicles prepared for preservation and 124 similar type vehicles that were maintained and repaired during the 1st quarter of FY15/16. To date 9 267 labour hours have been spent on M&R for Op THUSANO which resulted in a cost saving of Rm3.9 RESTRICTED

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