DCOG ANNUAL REPORT FY 2010-2011 PRESENTATION TO THE PORTFOLIO COMMITTEE ON
COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS
Director-General: Mr. E Africa18 October 2011
OVERVIEW OF THE PRESENTATION
1. Organisational Structure of the Department 2. Restructuring Process3. Performance of the Department 4. Financial performance 2010/115. Disaster Interventions6. LGTAS / Outcome 97. Response to concerns raised by the Portfolio
Committee on the Annual Report (AR) FY 2009/20108. Highlights: Annual Report FY 2010/119. Summary of Performance: FY 2010/1110. Programme progress against annual targets11. Initiatives to address Auditor-General’s findings
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OVERVIEW OF THE PRESENTATIONOrganisational Structure of the Department Restructuring ProcessPerformance of the Department Financial performance 2010/11Disaster InterventionsLGTAS / Outcome 9
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MINISTRYCOOPERATIVE GOVERNANCE AND
TRADITIONAL AFFAIRS
DEPARTMENT OF TRADITIONAL AFFAIRSDIRECTOR-GENERAL
DEPARTMENT OF COOPERATIVE GOVERNANCE
DIRECTOR-GENERALMr E Africa
BRANCH: GOVERNANCE AND INTERGOVERNMENTAL
RELATIONS
Mr KT Sigidi
BRANCH: INFRASTUCTURE AND ECONOMIC DEVELOPMENT
Mr R Hansby
BRANCH: PROVINCIAL AND MUNICIPAL GOVERNMENT
SUPPORTActing : Dr KL Sebego
CHIEF DIRECTORATE: LEGISLATIVE REVIEW AND
DRAFTING
Ms V Ndah
BRANCH: NATIONAL DISASTER MANAGEMENT CENTRE
Acting : Ms M Sethusha
BRANCH: POLICY, RESEARCH AND KNOWLEDGE MANAGEMENT
SUPPORT
Mr T Fosi
CHIEF OPERATING OFFICERDr KL Sebego
BRANCH: CORPORATE AND FINANCIAL SERVICES
Mr M Mtythda
INTERNAL AUDIT
CHIEF DIRECTORATE: COMMUNICATION AND
MARKETING
Mr B Rakate
ANTI CORRUPTION INSPECTORATE
RESTRUCTURING PROCESS
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• Dept embarked on a review of the organisational strategy after the
2009 national elections.
• Strategy of the department was aligned to the expanded mandate of
the new Department of Cooperative Governance, including the
institutionalisation of the project management approach and
establishment of provincial offices to enhance service delivery.
• The implementation of the new structure is 90% completed.
• SMS posts were filled through competitive placements and posts
below SMS finalised through matching and placement.
• Placement below SMS is 100% completed.
• Throughout the process no employee lost their jobs or was in danger
of losing their job.
RESTRUCTURING PROCESS cont.
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• POSTS STATISTICS:
• SMS posts filled – 107
• SMS posts vacant – 18
• SMS structure with names (copy attached)
• Nr of staff additional to the establishment:
• SMS: 32 (current process underway to address this situation)
• Level 1-12: 10 (staff appointed on contract for specific projects,
i.e Masibambane & EU projects)
Overview of Achievement FY 2010/11
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47%
21%
Reasons for non-achievement as disclosed in the Annual Report is mainly
due to capacity constraints experienced during this transition period.
All the projects that have been partially and not achieved have been
catered for in the APP 2011/12 and are currently being implemented
Expenditure Trends :2004/05 to 2010/11 R’000
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The bar chart shows expenditure trends over a period of 7 years. The 2010/11 financial year 99.7% of the Total appropriation was spent.
Financial performance FY 2010/11The post of CFO was only filled in January 2011 and
that of the Executive Manager Internal Audit and Risk Management was only filled after March 2011;
A functional Audit Committee is in place and chaired by Ms Nonhlanhla Khumalo;
The findings of the AG was a qualification with reasons of incomplete disclosure of irregular expenditure; and
The Department has adopted a post audit action plan after consultation with Executive Managers, a partnership between NT and DCoG is in place to assist with the post audit action plan
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Financial performance FY 2010/11 Acquisition/logistics asset management (intangible assets),
Asset management (tangible assets), Financial accounting services (fast), Internal Audit & Risk Management, Information Communication and Business Technologies, human capital management and Irregular expenditure
We are in a process of appointing financial governance Advisor to assist monitoring of the plan
We also initiated processes of strengthening systems and processes of accountability During the period under review we have undertaken disciplinary
actions on irregular expenditure
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• National State of Disaster declared on 21 January 2011 in 33 District and Metro
municipalities in 8 provinces due to flooding and other related incidents following adverse
weather conditions
• Initial assessments conducted by Provinces and Municipalities estimated damages
amounting to R 12 473 694 314
• Response & rehabilitation needs assessments undertaken by the NATJOC teams with the
leadership of NDMC
• Independent verification & costing (technical assessments), as required by NT, undertaken
by professional services providers -verified infrastructural damages amounting to R3 897
083 291
• Priority Sectors identified by IMC for allocation of R 600mil (ring-fenced) for the disaster:
Education (Schools, 30%), Transport (Roads & Bridges, 40%) & Human Settlements
(Houses, 30%)
• As from 1 April 2011, R1,850 billion new conditional grants funding for immediate disaster
needs for both municipalities & provinces over the MTEF period in DORA. R775 mil for
2011/12. (R305m for provinces &R470m for municipalities)
Disaster Intervention Process When By Who OutcomeDeclaration of National State of Disaster (flooding & related events Dec 2010 and Jan 2011)
21 January 2011
Minister: COGTA 8 Provinces33 Municipalities affected
Initial assessments Jan , Feb 2011
Affected Municipalities, Provinces, Sectors
Estimated damages: R 12 473 694 314
Identification of priority sectors for allocation of R600 million
March 2011
IMC Schools (30%)Roads & Bridges (40%)Houses (30%)
Response and rehabilitation needs assessments
February 2011
NATJOC teams with leadership of NDMC
Extent & nature of damages & priority needs to address
Independent verification and costing technical assessments
April – July 2011
Professional Service Providers
Verified infrastructure. damages :R3 853 029 791
Formal Request for funding for the repair of flood damaged infrastructure in 8 provinces
Aug, Sept DCoG (NDMC), NT
R600mil immediate release to sector departments R 3 253 029 791 adjust. budget & MTEF period
New Conditional Grant Funding for immediate disaster needs
1 April 11 (MTEF period)
DORA to DCoG R775 mil in 2011/12 for immediate disaster needs Municipalities (R470m) & Provinces (R305m)
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Lessons from disaster Pointed to key weaknesses & capacity challenges in the implementation of the Disaster
Management Act and Framework across the spheres & sectors of government
Challenges to address include credibility of information, quality & timeliness of reports,
lack of dedicated capacity for DRM in municipalities & sector dept’s, funding
mechanisms provided for in DM Act and Public Finance Management Act not
implemented by organs of state
Commitment of sector departments in disaster risk management processes are vital-
multi-disciplinary Technical Task Team of the National Disaster Management Advisory
Forum in the process of streamlining response actions to ensure rapid and more
effective response
Acknowledge the need and importance to invest in disaster risk reduction (DRR)
Need to streamline processes. It should however be noted that the verification &
assessment process conducted over the past few months to meet the requirements to
submit a request for funding, was done in the shortest period of time since the
promulgation of the Disaster Management Act, 2002 also taking into consideration that
the disaster covered 8 of 9 Provinces. 13
LGTAS/OUTCOME 9• The Delivery Agreement was finalised this year• Politicians and MEC signed performance agreements• The department’s Annual Performance Plan aligned to LGTAS/Outcome 9• Implementation Forum and Technical Implementation Forum established• Significant progress was made in the following areas:
- CWP- Noted a fluctuation in vacancies (MM positions etc)- Access to basic services- Finalised the MSA by March 2011- Significantly improved relationship with NT on key interventions
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Response to concerns raised by the Portfolio Committee on the CoGTA Annual Report FY
2009/2010
Concerns Interventions by DCoG
What is the department doing to ensure that emergency procedures are initiated to allow for immediate release and use of Disaster relief funds?
• A new conditional grant (Provincial & Municipal) amounting to
R775 mil for 2011/12 , was created on the Cooperative
Governance and Traditional Affairs vote to enable immediate
short term humanitarian relief after a disaster is declared.
•The NDMC is currently revisiting the framework of the grant in
order to be more efficient in response.
•The NDMC is currently developing a mechanism for effective
funding of the reconstruction infrastructural damage.
•Emergency procedures to ensure immediate release funds
are being developed.
•The Financial and Fiscal Commission is undertaking research
to recommend more effective disaster funding models.
•The review of the Disaster Management Act (Act 57 of 2002)
also includes reviewing the section on funding.
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Response to concerns raised by the Portfolio Committee on the CoGTA Annual Report FY
2009/2010 Concerns Interventions by DCoG
Lack of progress on fire services improvement, including the fact that legislation was not yet presented and no Board was in place. Deteriorating infrastructure, management of stations and lack of service in rural and township areas
Legislation & BoardConsultation sessions with provinces & municipalities on the scope of fire services legislation has commenced in August 2011.The principle of appointing ex officio members of the Fire Brigade Board (FBB) based on their portfolio has been implemented to limit disruptions due to changes in portfolios.
Deteriorating infrastructure, management of stations & lack of service: Maintaining and provision of infrastructure, management of stations and provision of Fire Fighting services is the responsibility of municipalities who are required to make provision in their annual budgets.The Dept provides ongoing support to municipalities in fulfilling their mandate including discussions with DAFF (responsible for Fire Protection Associations & Working on Fire Project) to support service in rural area.The Department procured Urban Search and Rescue (USAR) equipment ( R16m) for the World Cup which has now been placed at Gauteng and Western Cape provinces respectively. This will assist in building the capacity of municipalities to deal with major USAR operations.
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Response to concerns raised by the Portfolio Committee on the CoGTA Annual Report FY
2009/2010
Concerns Interventions by DCoGWhat is the departmental intervention to ensure that Municipal Infrastructure Grant funding was being effectively utilised?
MIG performance is in two areas: Financial performance and Non Financial performance. DCoG has included in the DORA, sector specific responsibilities in supporting implementation of MIG projects. There are currently regular meetings and targeted visits to provinces and municipalities to discuss MIG performance issues such as underspending, appraisals & site visits.
A partnership has been entered into with the SIU to assess MIG expenditure, systems and controls.The project is being carried out in two phases. The first phase constitutes a high-level risk assessment of the MIG macro (national department) environment in order to profile risks and constraints which affect the efficiency and performance of the MIG programme. The second phase consists of the risk assessment to identify whether or not MIG funding is appropriately utilized by municipalities. This will involve carrying out quality of spending and performance reviews at a municipal project level.
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Response to concerns raised by Portfolio Committee on AR FY 2009/2010
Concerns Interventions by DCoG
How and by whom will cross-cutting issues such as water and sanitation be addressed?
DCoG as a coordinating department relies on other lead sector departments. The implementation forum on outcome 9 is a platform for discussing strategies on cross cutting issues. Also a joint Basic Service Task Team has been established with Human Settlements
How will Operation Clean Audit succeed when some incompetent or dishonest municipal officials simply move from one municipality to another
The enactment of the Municipal Systems Amendment require appointment of skilled personnel and allows the Minister to intervene where this is not complied with. If the movement is due to corrupt practices the Act prohibits the appointment of these officials for a period of 10 years.
Report back on the proposed amendments to the Municipal Systems Amendment Bill
The Bill was amended and approved by Parliament before March 2011. The draft regulations have been developed and are currently under consultation.
How is the department going to deal with R49 million spending on travel and subsistence attributed to the turn-around strategy?
The assessment of the State of local Government was a very important exercise that provided the department with opportunities for improved service delivery. The department is now providing support through differentiation based on the available data that was collected during the assessments. The total travel and subsistence for the 2010/11 has declined significantly to R 38 million.
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Response to concerns raised by Portfolio Committee on AR FY 2009/2010
Concerns Interventions by DCoG
What is CoGTA doing on the capacity of the provinces? Is the support and monitoring that was required of them under the Constitution taking place, and what progress is being made on municipal internal capacity?
The department has a Provincial and Municipal Support Branch which was established from the premise that National department must exercise its mandate of capacitating Provinces to provide appropriate support to Municipalities. In this branch there is a full Chief Directorate focussing on provincial support.
The draft bill on Monitoring, Support and Interventions regarding provinces has been developed.
The Provincial Support Unit is undertaking consultations with provinces as to how best the support can be provided. The specific provincial sensitivities in this regard are being taken into account.
How will CoGTA help unlock unspent funds in municipalities and address the substantial debt owed to some municipalities by other government departments, particularly Department of Public Works
DCoG in collaboration with PME and Public works have established a task team that has finalized the aggregation of debt by government per province. The team has started with eThekwini, King Sabata Dalindyebo and Port St Johns municipalities as pilots for direct support in resolving the government debt related issues. 19
Response to concerns raised by Portfolio Committee on AR FY 2009/2010
Concerns Interventions by DCoG
How far has CoGTA gone in implementing the findings and recommendations from the AG?
The department developed and implemented a post audit action plan on the issues raised by the AG. Progress on the implementation of the plan was monitored throughout the financial year using the various governance structures within the department.
When will LGTAS likely to show a real difference ?
The ultimate aim is that LGTAS as a strategy becomes part of the sustained agenda of the department to achieve outcome 9 Vision of an integrated, responsive and highly effective local government system. The examples of the successes of LGTAS include:• Improvement in the access to basic services.•Job opportunities created through CWP (89 689 job opportunities created)• Operation Clean Audit yielded an improvement from 113 unqualified audit opinions in 2008/09 to 120 in 2009/10 as well as an improvement from 4 to 7 clean audits in these financial years.
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Response to concerns raised by Portfolio Committee on AR FY 2009/2010
Concerns Interventions by DCoG
What is progress on building internal capacity to run community work programme
The department has assigned an Executive Manager responsible for CWP, the tender for implementing agents who are intended to augment the programme management for CWP is also currently under adjudication.
National Treasury had suggested that too many reporting responsibilities were being put on municipalities, which took officials away from doing the work on providing services
Annual Performance Plan FY 2011/12 project on streamlining reporting requirements is aimed at reducing the burden of reporting. Joint work is being done with NT and the Presidency on the refinement of indicators, the budget programme structure and the Annual Report template of Municipalities with a view of producing fewer reports providing progress against selected key indicators.
Concerns were raised on the R37 million spending on consultants 21
Progress: concerns raised by Portfolio Committee on AR FY 2009/2010
Concerns Interventions by DCoG
Is Sanitation a responsibility of CoGTA or Water Affairs?
Sanitation has been officially transferred to the Department of Human Settlements (DHS). However, that does not take away DCoG still has a responsibility to coordinate support to provinces and municipalities
What is the department’s initiatives to finalise the transformation process and improve staff morale?
The departmental restructuring process is substantially complete and a change Management programme is currently being developed.
CoGTA must cooperate with the Presidency in its efforts to promote evidence-based evaluations that could produce concrete evidence and show the impact.
The department is working closely with the Presidency
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Highlights of the FY 2010/111. The signing of delivery agreements between the Minister and the MECs
as well as Mayors in September 2010;
2. 89 689 job opportunities were created through the community work programme against a target of 87 000 opportunities;
3. Progress has been made to enhance the department’s coordination role across the three spheres e.g. through the Legislative Committee were the department is coordinating the identification of all legislation that weakens government’s efforts in service delivery;
4. The Municipal Systems Amendment Act was finalised;
5. We worked closely with stakeholders in preparing for elections;
6. Milestone on the finalisation of the recruitment and placement process;
7. Disciplinary Regulations and Procedures for S57 Managers Promulgated in February 2011; and
8. Disaster Management Centres across the spheres of government were activated to coordinate the multi-sector response to the National State of Disaster declared on 21 January 2011 in 8 provinces.
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Achievement Status: Summary FY 2010/11
Portfolio Achieved
Partially achieved
Not Achieved TOTAL
Provincial and Municipal Government Support 25 - 24 49Infrastructure and Economic Development 5 7 8 20
Governance and IGR 7 8 4 19Policy Research and Knowledge Management 5 3 1 9
Administration 10 3 13National Disaster Management Centre 4 4 1 9
TOTAL 56 25 38 119
% 47% 21% 32%
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Source: Audited DCoG Annual Report FY 2010/11
Response to AG report 2010/11AG FINDINGS RESPONSE
Management did not prepare regular, accurate and complete financial and performance reports that are supported and evidenced by reliable information.For the selected programmes the validity of 28% of the reported targets could not be established as sufficient appropriate audit evidence could not be provided
The 2011/12 Annual Performance plan caters for supporting documentation that will be provided by the end of the FY as evidence of achievement
Maintain an effective, efficient and transparent system of internal control regarding performance management, which described and represented how the institution’s processes of performance planning, monitoring, measurement, review and reporting was conducted, organised and managed
Initiatives introduced include the implementation of a project management approach, regular performance review (monthly at branch and organisational and follow-through on projects that have been partially and not achieved. One-on-One between the DG and DDGs, reintroduction of the executive management committee
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Response to AG report 2010/11
AG FINDINGS RESPONSE
The accounting officer did not take effective and/or appropriate steps to prevent irregular expenditureGoods and services with a transaction value of between R10 000 and R500 000 were procured without inviting at least three written price quotations from prospective suppliers
The revised Supply Chain Management policy is being popularised across all branches. Actions have been taken against officials who do not adhere to these regulations, mainly on abstaining three quotations and paying creditors within 30 days from receipt of an invoice
All payments due to creditors were not settled within 30 days from receipt of an invoice
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Response to AG report 2010/11
AG FINDINGS RESPONSE
The accounting officer did not ensure that there is an adequately resourced and functioning internal audit unit that identifies internal control deficiencies and recommends corrective action effectively
All posts of the internal audit unit has been filled including that of the Executive Manager
The strategic plan of the department did not include measurable objectives, expected outcomes, programme outputs, indicators (measures) and targets for all of the entity’s programmes
The 2011/12 Annual Performance plan adheres to the ‘Smart’ criteria and includes all the requirements as set in the NT regulations and the framework for Strategic planning and annual performance plan
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Conclusion1. Major reasons for underperformance in the past
financial year was to do with the deep restructuring process which has now been finalised;
2. In addition to the responses to the AG findings Management has developed action plans to address all issues raised by the AG in order to improve on the performance of the department, the action plans were recently shared with executive Managers at the Departmental Executive Management Committee, Each affected party has been tasked to implement remedial actions outlined in the action plan; and
3. The Committee will be given regular updates on progress against issues raised by the AG going forward
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PRESENTATION OUTLINE
Purpose of the PresentationMission, Vision and Strategic ObjectivesEvolution of the DepartmentDTA performance information:non financial; and Financial informationFindings by Auditor General DTA Post Audit Action PlanChallengesRecommendations
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PURPOSE OF THE PRESENTATION
To present the DTA Annual Performance for the 2010-2011 financial year in line with Section 40 (1) (e) of the PFMA.
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VISION AND MISSION STATEMENT
Vision: A transformed, coherent and cohesive institution of traditional leadership which plays a central role intraditional affairs and governance and contributesto rural development.
Mission: To provide coordinated support to the institutionof traditional leadership within the system of cooperative governance by:
1. Developing appropriate policies and systems;2. Establishing structures to enable communities to participate in governance and development processes; and3. Promoting social cohesion and preservation of
customary law and tradition.
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Strategic Objective One:
To build organizational capacity of the Department of Traditional Affairs and strengthen the capability to deliver on its mandate;
Strategic Objective Two:
To develop, review, monitor and implement legislation policies relevant to traditional leadership nationally; and To coordinate and monitor the review and implementation of legislation and policies relevant to traditional affairs by national and provincial government departments.
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Strategic Objective 3:
To build capacity and capability of the institution to play a meaningful role in service delivery, development and the preservation of customary and tradition
Strategic Objective 4:
To support the National house of Traditional Leaders, the CRL Rights Commission, Commission on Traditional Leadership Disputes and Claims
Program 5:Chief Directorate of Traditional Leadership
Department of Traditional Affairs
Management &
AdministrationManagement &
Administration
Research, Policy &
LegislationResearch, Policy &
Legislation
Institutional Support
& CoordinationInstitutional Support
& CoordinationBra
nche
s/ P
rogr
amm
es
Strategically locating the twoKey Ministries within the
Presidency: Planning Commission to focus on long range planning for
South Africa & Performance, MonitoringAnd Evaluation to ensure seamless
Accountability across departments & spheres
(Horizontally and Vertically)
Strategically locating the twoKey Ministries within the
Presidency: Planning Commission to focus on long range planning for
South Africa & Performance, MonitoringAnd Evaluation to ensure seamless
Accountability across departments & spheres
(Horizontally and Vertically)
The President when opening the House of Traditional Leaders
In February 2010, stated that the“Ministry of Provincial and Local Government was replaced by the Ministry of Cooperative
Governance and Traditional Affairs – to emphasise the need for better coordination and coherence
between the spheres of government”
The President when opening the House of Traditional Leaders
In February 2010, stated that the“Ministry of Provincial and Local Government was replaced by the Ministry of Cooperative
Governance and Traditional Affairs – to emphasise the need for better coordination and coherence
between the spheres of government”
Reconfiguration of departments in Line with the Manifesto priorities
2009-2014
The Department of TraditionalAffairs as stand alone, emerged From this strategic repositioning
process
then
and
and
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DTA ORGANISATIONAL STRUCTURE
During the year under review a total of 90 post were funded and approved, however only 58 posts
were filled; and DTA is in the process of filling all vacant funded posts The approved posts do not cater for the CRL Rights
Commission as it receives transfers from the DTA; and DTA is in the process of reviewing the current organisational structure to align it with the strategic direction of the department.
EVOLUTION CONT…
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EVOLUTION CONT…
Chief Directorate: Traditional Leadership and Institutions’ business plan was incorporated into the Department’s business plan and the latter became program 5 within COGTA Strategic Plan;
The appointment of DTA Executive Leadership in September 2010 culminated into:• the review of DTA 2010/2011 business plan to ensure the
alignment of the new and expanded mandate and strategic shift of the DTA to the Business Plan projects, and to confirm the sufficiency of allocated financial and human resources.
• Appointment of sms members and confirming and placement of staff from the chief directorate (DCOG)
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EVOLUTION CONT…
The review of the business plan led to:• Some projects being deferred to 2011/2014
strategic plan; • Reprioritization of strategic projects and
identification of DTA priorities for 2010/2011
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DEFERRED PROJECTS
Programme 1: Administration
Programme 2: Research ,Policy & Legislation
Programme 3:Institutional Support& Coordination
Development of Human Resources Management and development strategies and policies
Regulations of roles and functions of kings and queens
Database on skills audit of kings/queens/principal and senior traditional leaders and capacity building needs
Development of Change management strategy
Provision of interim arrangement for the participation of the Khoi-San leadership in all houses of traditional leaders
Capacity building on legislation impacting on traditional leaders
ICT governance framework Facilitating the amendment of Recognition of Customary Marriages Act
Information sessions on the uniform norms and standards impacting on the operations of traditional leadership
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DEFERRED PROJECTS CONT…
Programme 1: Administration
Programme 2: Research ,Policy & Legislation
Programme 3:Institutional Support& Coordination
Promotion of the role and place of traditional affairs, the institution of traditional leadership and the Khoi-San leadership in the governance system as well as that of the Department of Traditional Affairs in the political economy
Handbook on norms and standards relating to remunerative and other benefits and tools of trade of traditional leadership and traditional councils
Public education programme on initiation and ukuthwala, ukungenwa, traditional healing and related customary and cultural practices
Development of supply chain management policies and procedures
Framework/Guidelines/Regulations allocation of roles and delegations of functions to traditional leaders and traditional councils by organs of state
Provision of support to associated institutions
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DTA 2010/11 PRIORITIES
Assessment of the state of governance within the area of traditional affairs;
Policy and legislative review e.g. NTAB;Development of governance systems and
structures; and Recruitment of personnel.
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Although the Departmental performance is fairly satisfactory, the non achievement on some of the planned targets is attributed to:
• Inadequate human resource capacity; and
• Inadequate funding for the Department to carry out its mandate, including among others consultation on the NTAB.
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SO 1:To build and strengthen the Department of Traditional Affairs’ organizational capacity and capability to deliver on its mandate;
Appointment of the Executive Leadership in September 2010;All staff in the DTA were relocated to new offices by March 2011;Organisational Structure was developed, approved and implemented;The revised DTA Business Plan was developed and approved by the Minister 10 February 2011;; DTA performance reports are submitted to the Minister;and DTA logo was developed and approved by Minister by August 2010.
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SO 2:To develop, review, monitor and implement legislation and policies relevant to traditional leadership nationally
Guidelines to determine the number of members of a Traditional council were gazetted;Handbook on the tools of trade for Traditional Leaders was drafted and presented to committee of the National House of Traditional Leaders in July 2010. The initial consultation on the National Traditional Affairs Bill was done with selected stakeholders; andElectronic information system was updated in respect of senior traditional leaders and communities during the period under review.
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SO 3: To build capacity and capability of the institution to play a meaningful role in service delivery, development and the preservation of customary law and tradition
Assessment workshops were held with six (6) of the eight Provinces : NC, MP, FS, EC, GP and Limpopo
800 Senior traditional leaders trained on legislation;
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SO 4: To support the NHTL, CRL Rights Commission and CTLDC to carry out their mandates
Secretaries of the CTLDC and the NHTL were appointed in January 2011 Gazette issued for the establishment of the CTLDC,
and CTLDC was established
Five commissioners were appointed
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Final Appropriation
Actual Expenditure Variance
% Spent
Final Appropriation
Actual Expenditure
R'000 R'000 R'000 R'000 R'000Prog. 1: Administration 12 523 12 523 - 100% - - Prog. 1: Research, Policy and Legislation for TA 6 566 6 566 - 100% 7 914 7 914 Prog. 3: Institutional Support and Coordination 3 841 295 3 546 8% - - * National House of Traditional Leaders 19 046 15 754 3 292 83% 13 755 13 755 * CRL Rights Commission 24 401 24 401 - 100% 20 250 20 250 * Commission on Disputes and Claims 7 700 2 278 5 422 30% 12 604 12 604 TOTAL 74 077 61 817 12 260 83% 54 523 54 523
2010/11 2009/10
Programmes
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Final Appropriation
Actual Expenditure Variance
% Spent
Final Appropriation
Actual Expenditure
R'000 R'000 R'000 R'000 R'000Compensation of Employees 28 693 17 267 11 426 60% 11 811 11 811 Goods and Services 20 237 19 403 834 96% 20 724 20 724 Transfer Payments 24 401 24 401 - 100% 21 970 21 970 Payment for Capital Assets 746 746 - 100% 18 18 TOTAL 74 077 61 817 12 260 83% 54 523 54 523
Description
2010/11 2009/10
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During the year under the overall Department Expenditure amounted to R61,8 million which translates to 83% of the total appropriated budget of R74 million. The under spending is mainly due to the fact that the Department became operational only in January 2011 when the SMS staff members assumed duty. Strategic projects such as “Assessment of State of Governance in the Provinces” which Programme 3 is responsible for, was implemented towards the end of the financial year.
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The under expenditure on Compensation of Employees is attributed to slow recruitment process which resulted in the appointment of SMS staff in January 2011.
Assessment on state of governance project for KZN and NW were deferred to 2011/12 and this resulted in savings on Goods and Services.
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FINDINGS BY THE AUDITOR GENERAL Irregular expenditure occurred as Goods and Services
were procured without three quotations; The 2010/2011 strategic plan not approved by the
relevant executive authority; The medium term strategic framework for 2009/2014 did
not meet the criteria as prescribed by treasury regulations e.g. measurable objectives;
Failed to submit quarterly reports to the executive authority and did not track progress against outputs; and
No standard policies/procedures on how to collect, record, process and report on performance information.
DTA has developed an action plan as a commitment to address issues raised by the AG
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POST AUDIT ACTION PLANAppointed a Senior Manager: Demand Management to
monitor compliance with SCM policies;Staff will be trained on supply chain management policies
to avoid irregular expenditure and;The 2011/12 Annual Performance Plan has been tabled for
approval in Parliament;Developed guidelines to ensure proper planning and
reporting as per the framework of National Treasury;DTA has developed Planning and Reporting Guidelines
which will assist on how to collect, record, process and report on performance information.
Introduced a quarterly review system to track progress on the implementation of the annual performance plan.
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Inadequate human resource capacity led to some of the projects not being achieved;
Slow recruitment processes led to critical posts being filled late in the FY and negatively
affected performance of the departmentDepartment still at the establishment phase and therefore not all the systems established due to
inadequate human resource capacity and financial constraintsLengthy and costly NTAB consultation processes which delayed tabling of the Bill in Parliament
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For the Portfolio Committee to note:
DTA 2010/2011 performance;The intervention made to address audit outcomes; and Challenges confronting the department.