Addressing Audit Concerns: 2012/2013 Report Analysis

1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON COMMUNICATIONSACTION PLANS TO ADDRESS ISSUES RAISED BY THE AUDITOR-GENERAL IN THE ANNUAL 2012/2013 REPORT 17 October 2013 A global leader in the development and use of Information and Communication Technologies for socio-economic development

2. INTRODUCTION (1) • In the annual report for 2012/2013, the Auditor-General has raised the following matters: • Achievements of planned targets • Expenditure management • Human resources management and compensation • Leadership • Financial performance management A global leader in the development and use of Information and Communication Technologies for socio-economic development

3. Challenges faced in 2012/2013 • In the 2012/13 financial year, the Department committed to achieve a total of 39 targets across its 6 Programmes and only 21 (54%) of these were achieved and 18 (46%) were not achieved. • The level of non-achievement can be attributed to various project specific challenges as well as cross-cutting challenges that were experienced by the Department during the reporting period, some of which are listed below: • HR capacity constraints in certain key areas affecting our skills base to deliver on specific areas, e.g. DTT, broadband, spectrum, policy and SOC Oversight. • Inadequate leadership oversight due to the absence of the Director General and this created instability and uncertainty. • Non-functional internal audit to assist in detecting areas of concerns and this led to the non-reliance by AG on Internal Audit Reports. A global leader in the development and use of Information and Communication Technologies for socio-economic development

4. Challenges faced in 2012/2013 • Finalisation of the migration process had a further negative impact on recruitment, specifically at SMS level. • With regards to the ICT Policy review, delays were as a result of a change in the ICT Policy review process which was revised in line with international best practices during the period under review. • In terms of implementing the legislative programme, significant delays were due to lengthy periods of public consultation on respective Bills. • Delays related to the BDM project were largely related to the court proceedings regarding the management of the STB control mechanism. A global leader in the development and use of Information and Communication Technologies for socio-economic development

5. Corrective Measures • The following measures have been put in place to improve the • performance of the Department: • All key and critical projects have been projectized and are monitored on a monthly basis by various governance structures in the Department. • All managers are required to provide evidence on all completed projects for verification by internal audit. • Projects have been aligned to budgets to ensure expenditure is tracked on a monthly basis. • Migration of staff to the new structure has commenced and will be finalized by 1st November 2013. • 38 critical and funded vacancies have been identified and will advertised by 1st November 2013. Priority will be given to Policy, broadband and SOE oversight. A global leader in the development and use of Information and Communication Technologies for socio-economic development

6. Corrective Measures • The Department is currently reviewing all its policies to ensure that they are in line with legislative prescripts, National Treasury and Public Service Regulations. • Compliance and Governance Unit has been established on a pilot basis to ensure that sufficient level of assurance is provided on all processes of the Department. • Management has put in place stringent measures to ensure that there are consequences on all instances of non-compliance. • Workshops are regularly conducted to raise awareness amongst staff on the importance of complying with the applicable laws and regulations. A global leader in the development and use of Information and Communication Technologies for socio-economic development

7. Corrective Measures • The Department has engaged National Treasury Technical Assistance Unit (TAU) to ensure that the targets set by the Department are SMART. • DPSA has further designated an official at a DDG level to assist the Department to expedite all outstanding Human Resources issues pending the appointment of the Head of Human Resources, i.e. migration of employees and filling in of vacancies. • Internal Audit unit will be capacitated by appointing the Chief Director and Director responsible for Internal Audit. A global leader in the development and use of Information and Communication Technologies for socio-economic development

8. Anticipated Outcome • The proposed measures are anticipated to deliver the • following results by 31st March 2014. • All funded vacancies filled with competent and skilled personnel • Attainment of targets in line with the APP (Possible delays may arise in complex projects such as BDM due to funding and other technical matters) • Expenditure on projects aligned with the allocated budgets • Full compliance attained through constant monitoring and compliance checks by both Internal Audit and Governance Units • Quick turnaround times on decision- making to fast track implementation • Updated and responsive organizational policies to the operational requirements of the Department. • Fully functional and capacitated internal audit. A global leader in the development and use of Information and Communication Technologies for socio-economic development

9. Achievement of targets A global leader in the development and use of Information and Communication Technologies for socio-economic development

10. Achievement of targets A global leader in the development and use of Information and Communication Technologies for socio-economic development

11. Achievement of targets A global leader in the development and use of Information and Communication Technologies for socio-economic development

12. Expenditure Management A global leader in the development and use of Information and Communication Technologies for socio-economic development

13. Expenditure Management A global leader in the development and use of Information and Communication Technologies for socio-economic development

14. Human Resources Management A global leader in the development and use of Information and Communication Technologies for socio-economic development

15. Human Resources Management A global leader in the development and use of Information and Communication Technologies for socio-economic development

16. Information Technology A global leader in the development and use of Information and Communication Technologies for socio-economic development

17. Supply Chain Management (SCM) A global leader in the development and use of Information and Communication Technologies for socio-economic development

18. Leadership A global leader in the development and use of Information and Communication Technologies for socio-economic development

19. Financial Performance Management A global leader in the development and use of Information and Communication Technologies for socio-economic development

20. THANK YOU A global leader in the development and use of Information and Communication Technologies for socio-economic development