PRESENTATION TO THE SELECT COMMITTEE DEPARTMENT OF TELECOMMUNICATIONS AND POSTAL SERVICES 2014/2015 ANNUAL REPORT 25 November 2015

PRESENTATION TO THE SELECT COMMITTEE

DEPARTMENT OF TELECOMMUNICATIONS AND POSTAL SERVICES

2014/2015 ANNUAL REPORT

25 November 2015

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

During the reporting period, 01 April 2014 to 31 March 2015, the Department underwent the process of the National Macro Organisation of the State.

Subsequent to the May 2014 National Elections, the President pronounced the establishment of the National Department of Telecommunications and Postal Services.

Presidential Proclamations confirmed the transfer of administration, powers and functions entrusted by specific legislation to the Ministry of Telecommunications and Postal Services and the newly formed Ministry of Communications.

The Proclamations resulted in a transfer of relevant projects and associated resources to the Department of Communications. Such projects and resources featured largely around the Broadcasting space.

The process also resulted in the Department inheriting two additional State Owned Companies in the form of Broadband Infraco and SITA.

The Department had to ensure the continuous implementation of its Annual Performance Plan, in alignment with its revised mandate, while still managing this phase of transformation.

BACKGROUNDBACKGROUND

2


During the reporting period, the following significant achievements were noted, amongst others: The Department developed high level implementation plans for the four pillars of

SA Connect. A Broadband Steering Committee as well as the National Broadband Advisory Council was appointed. The Department secured funding allocation of R740 million over the MTEF.

The Department undertook extensive public consultation on the National Integrated ICT Policy Green Paper in all nine Provinces which informed the development of the ICT Policy Review Discussion Paper that highlights a range of policy options and possible policy approaches. The Department went on to develop the National Integrated ICT Policy Recommendations report which will inform the development of the White Paper on National Integrated ICT Policy.

With regards to addressing the cost to communicate, the Department developed a Policy Directive on Price Transparency as well as a Policy Directive on Premium Content, both of which were approved by the Minister and submitted to ICASA for consultation as required by the ECA. Furthermore following a benchmarking study the Department developed a Benchmarking Report on Mobile Data Pricing including relevant recommendations for consideration.

OVERVIEW OF KEY ACHIEVEMENTSOVERVIEW OF KEY ACHIEVEMENTS

3


ICT Policy Review (partially achieved)

Extensive public consultations were held in the form of Public Hearings in all nine Provinces.

A Discussion Paper which was published in November 2014 that presented a range of options and possible policy approaches.

ICT Policy Recommendations Report was developed, through the ICT Policy Review Panel, which will inform the White Paper.

Area of under-achievement:

The Department was unable to develop the Draft White Paper on National Integrated ICT Policy as planned. This was largely due to delays caused by an extension in the deadline as well as high volume of responses received during the public consultation which required additional time to analyse inputs.

Current Status

Additional research with identified areas has been undertaken and concluded. This research also included international benchmarking. The writing of the White paper has commenced and it is envisaged that the Department will table the White Paper for consideration and approval by Cabinet at the end of the year.

Programme 3: ICT Policy, Research and

Capacity Development (1)



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National Address System Policy (partially achieved)

Developed and obtained approval of the concept paper on the National Address System.

A Cabinet Memorandum on the National Address concept paper was developed.


Due to poor participation by key stakeholders, development and gazetting of the NAS Policy could not take place as planned.

Current Status

A draft National Address System Policy was developed and consultations with key stakeholders such as the South African Post Office and the Inter-Departmental Steering Committee was conducted. Furthermore a gap analysis for the addresses in the country was conducted.

Community Broadcasting Growth Strategy (partially achieved)

Developed a draft Community Broadcasting Growth Strategy.

Implemented a Support programme for Community Radio.


Community Broadcasting Growth Strategy was suspended due to the outcomes of the Presidential Proclamation which had an impact on the mandate and functions of the Department, with specific reference to the broadcasting related functions. Such functions were subsequently transferred to the newly established Department of Communications.





5


ICT B-BBEE Council (partially achieved)

Benchmark reports, with recommendations, on Charter Councils and the role of Minister was developed.

Implementation plan on the establishment of the Charter Council including the Terms of references of the Council were developed.

Public nomination process for candidates of the Charter Council was concluded.

Consultation with Department of Communication commenced to conclude shortlisting of candidates for the Council.


The appointment of Council members was delayed as there were lesser nominations received as well as the fact that the Department had to now engage with the newly established DoC due to the reconfiguration process.

Current Status

The nominees to sit on the ICT B-BBEE Council was approved by Cabinet on the 23 rd September 2015 .The Council has had three meeting including a breakaway workshop from 23 - 25 October 2015 to align the BEE ICT Sector Code to the BEE Generic Code. The Council was able to produce the draft aligned BEE ICT Sector Code and submit it to the DTI on 30 October 2015. The Council is currently consulting on the draft-aligned codes with sector stakeholders for inputs and final submission to the DTI by 15 November 2015.





6


National e-Strategy (partially achieved)

Revised the e-Strategy Framework to include stakeholder input received during the reporting period.

Draft National e-Strategy was substantially revised in line with inputs of an Inter-Departmental Working Group established by the Department.


The National e-Strategy was not finalised and gazetted as planned as more research and consultation was needed on the draft e-Strategy. Therefore additional capacity was required in terms of data collection and analysis of data in sectors such as health, education, justice etc.

Current Status:

Tender has been advertised for the service provider to develop the National e-Strategy which is currently under the evaluation process. Furthermore the Limpopo, Northern Cape and North West provinces has been consulted on the development of the National e-Strategy.





7


Cost to Communicate (partially achieved) Policy Directives on Price Transparency and Premium Content : Policy Directives were

developed and approved by the Minister, after which they were submitted to ICASA for consultation as required by the ECA.

Study Report on National Roaming: Terms of Reference were developed and approved by the Tender Committee after which the preferred service provider was appointed.

Benchmarking Study on Mobile Data Pricing: Benchmarking study was conducted and a benchmarking report including recommendations was developed.

Areas of under-achievement:

The 2 Policy Directives could not be finalised due to delays in receiving comment from ICASA. However Policy Directive on Premium Content was transferred to DoC.

Study on national roaming could not be concluded to delays in appointment and vetting of recommended service provider.

Current Status

A draft National Roaming Policy and a Draft Policy Direction on Mobile Data Pricing has been developed.





8


Internet Strategy (fully achieved)

Developed the Internet Strategy which was approved.

The internet strategy is being implemented through the school connectivity project that is being undertaken by the Department as part of SA connect.

Material and Information on SA’s ICT Sector and Military Heritage (fully achieved)

Collated material and information on SA’s ICT sector and digitised the Military Heritage content.

Established a website and a repository as an appropriate platform to access the digitised information.

Management of the project was handed over to the Department of Military Veterans (DMV) as planned so as to allow public access to the Military Veterans Content.





9


ICT Research Programme (partially achieved)

Research programme was developed through consultation with relevant stakeholders.

Commissioned series of comprehensive research studies, which provided baseline information for formulation of policy positions by the ICT Policy Review Panel.

Research related to South Africa’s sliding ICT Rankings was conducted and a dashboard of International ICT Indexes outlining indicators used in computation was compiled.


The research on Content generation hubs was put in abeyance pending the finalisation of the Proclamations on which aspects of broadcasting will be dealt with by the new DOC and the DTPS. Following this Proclamation, this area of work was handed over to the DOC.

Current Status

The Department is in a process of establishing a Research Experts Reference Group to advice the Minister on ICT Research issues.





10


ICT Information Management Repository (partially achieved)

ICT information needs of relevant stakeholders was identified and collated through administered interviews.

The ICT Information Repository Architecture and prototype was designed.

Developed a “desktop tool” and “web-based interactive repository and platform which allows users to browse, view, tabulate and download data sets from a wide variety of census and household survey data.

e-Barometer indicators were published and uploaded on the ICT Information Repository.


The review of ICT related empowerment targets did not take place as planned. However, building on current research done and working with StatsSA, it is envisaged that baseline ICT data on SMME related empowerment targets will be collated.

Current Status

ICT Informations Management Repository was fully developed and available in a form of desktop and web-browser.





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WSIS Country Report (partially achieved)

WSIS Country Report was developed, through consultation with relevant sectors.


WSIS Country Report can only be tabled in the 2015/16 financial year, during the WSIS-2015.

ICT Capacity Development Programme on Information Ethics (fully achieved)

Through the partnership with the African Centre of Excellence for Information Ethics, the Department organised a Government Information Ethics workshop in April 2014 at Carnarvon, Northern Cape Province.

The Information Ethics Conference was facilitated by the African Centre of Excellence for Information Ethics on 2nd to 4th July 2014 at Uganda.

Curriculum & awareness workshop was held in Mpumalanga on 27 November 2014 and the Eastern Cape on 14th November 2014.





12


Gender, Disability, Youth and Children mainstreaming (partially achieved)

Gender and ICT strategy was developed. Aspects of the strategy as it relates to the Gender Audit, Techno Girl Programme and Mobinet were implemented.

The Child Online Protection Programme was implemented in identified schools.

Consultations were held with 5 organisations for the development of the e-Parenting Programme and the e-Parenting Concept was developed.

Reviewed and finalised the concept of Access to Broadcasting for Persons with Disabilities.


Early Child development and technology access programme was delayed since the OECD Centres were not available to host workshops with the Department.

All project activities related to Access to Broadcasting by people with disabilities were suspended due to the outcomes of the Presidential Proclamation. Such functions were taken over by the newly established Department of Communications

Current Status

Hosted the ICT Accessibility round table and developed the ICT Accessibility Programme Concept document.





13


ICT agenda across the three sphere of Government (partially achieved)

Hosted the quarterly SOC Forums. SITA and BB Infraco were also integrated into the structure and are now reporting accordingly

The revised Terms of Reference for the National ICT Forum were consulted with stakeholders.

A webpage was developed in-house alongside the measurement portal. Information on automation of national services as well as on mobile services was collated.


The Intergovernmental Relations Forum and Intergovernmental Relations Technical Forum could not be hosted as planned as hosting of the IRGF meetings depends on the availability of Principals which proved to be a challenge.

Due to the non-hosting of the IGRF and IGRF Technical Committee meetings, information on public and private sector ICT related initiatives could not be presented to relevant stakeholders as planned..

Current Status:

The National ICT Forum was launched in May 2015 consisting of four chambers (Social, Economic, Governance and Security & Disability and ICT Sector) the chambers has already met between August and September 2015 and the work is continuing.





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Digital Readiness Strategy (partially achieved)

Digital readiness implementation plan was developed. Project Management office established to manage implementation of SA Connect.

Study on the rationalisation of relevant ICT SOCs in relation to implementation of digital future strategy was undertaken and a report, including recommendations was developed.

A Market Structure Study was undertaken in terms of Wholesale Open Access Network. Three reports on the framework for Market Structure and Open Access Models including relevant recommendations were developed.

A virtual cybersecurity Hub was established, offering identified services.

A draft Policy Directive on Spectrum for Broadband was developed.

Areas of under-achievement: The Rapid Deployment Policy could not be finalised as planned. The draft Policy Direction on Spectrum for Broadband could not be finalised.

Current Status

Draft Rapid Deployment Policy has been developed and was presented to the Ecomonic Sector Enterprise and Infrastructure development for approval to gazette and will be incorporated into the Integrated ICT Policy. The Department is in the process of revising the Nation Radio Frequency Policy.

Programme 5:

ICT Infrastructure Support (1)

Programme 5:


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Digital development strategy (fully achieved)

Department developed a Digital Development Work Breakdown Structure for 2014/15 Business Case which informed the development of the Digital Development strategy implementation plan.

A Business Case was approved by Minister for Digital Development and was submitted to National Treasury which resulted in the allocation of the following funds for the roll-out of the Digital Development implementation plan:

R200 mil (2015/16) R268 mil (2016/17) R271 mil (2017/18)

Digital future strategy (fully achieved)

Digital Opportunity implementation plan was developed and approved. The Work break down structure and scoping document for the Digital future strategy was also developed

Recommendations on the National Broadband network and the rationalization of State Owned Entities was developed and presented at the Economic Sectors, Employment and Infrastructure Development Cluster where it was supported and thereafter presented to the January 2015 Cabinet Lekgotla.

Programme 5:


Programme 5:


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e-Government (partially achieved)

Identified policy issues arising from the Broadband Connect policy and is in the process of identifying related legislation and regulations.

Department undertook an analysis of the legislations that governs e-Government so that the roles of the Minister of Telecommunications and Postal Services and the Minister of Public Service in respect of e-Government can be clarified.

The Department continuously monitors the development of the e-Government Platform, to this end, SITA has reported that the first phase of the e-Services platform has been completed.

Areas of under-achievement: The revision of legislative and regulatory matters was not finalised. Business Case for e-Government funding was not developed as planned.

Current Status In support of the stakeholder commitments, SITA has developed the e-services Platform

and six e-services to demonstrate platform capability Work on e-Cabinet is underway in line with the SITA project plans DTPS in collaboration with the DPSA and SITA are currently working on identifying and e-

enabling 5 prioritized e-services in line with MTSF 12.4.6

Programme 5:


Programme 5:


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ICT industry development and SMME growth (partially achieved)

In order to gather baseline information with regards to the SMME environment, a Request for Information (RFI) was Gazetted with a closing date on the 29 August 2014. A total of 92 submissions were received and analysed.

A Workshop was held with relevant stakeholders to further collect information from the sector which resulted in a draft baseline report on the state of the SMME development.

Areas of under-achievement: The two baseline reports on state of SMME development could not be finalised as

planned.

Current Status The Baseline Report is still being finalized and updated concurrently with the ICT SMME

Support Programme which will be published for public comments. International Benchmarks with comparator countries has been completed.

Programme 4: ICT ENTERPRISE DEVELOPMENT AND SOE

OVERSIGHT (1)


OVERSIGHT (1)

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Oversight to SOC’s and ICASA (partially achieved) Ensured alignment and integrated planning between the Department and its SOCs/Entities

as well as ICASA. Tabling of the final Corporate and strategic plans of SOCs were facilitated and SoCs

quarterly reports were analysed to determine the actual performance against targets. Annual General Meetings of SENTECH, SITA, USAASA, NEMISA, TELKOM and

VODACOM were facilitated within six months after the end of the 2013/14 financial year. Annual reports of SENTECH, SITA, USAASA, USAF, and NEMISA were tabled on 30

September 2014.Areas of under-achievement: The SAPO Shareholder compact could not be finalised as planned. Although all necessary processes were undertaken towards facilitating bilateral meetings

with Minister during the week of 2 to 6 March 2015, the bilateral meetings with the SOCs to discuss the Corporate and Strategic Plans did not take place as planned.

Current StatusAnnual General Meetings of SENTECH, SITA, USAASA, NEMISA were facilitated in August 2015.

Minister also participated in TELKOM and VODACOM AGMs.

Furthermore, tabling of Annual Reports of the SOC were facilitated.


OVERSIGHT (2)


OVERSIGHT (2)

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Corporatisation of the Postbank (partially achieved) Names of designated Postbank Board members were resubmitted to the SARB. An audit of the assets of the Postbank was conducted and a report was prepared in this

regard. Additional names of persons to be considered for appointment to the Postbank Board

were submitted. Areas of under-achievement: The process of registering the Postbank as a Company could not be finalised. Due to

delays in obtaining authorization from SARB to establish the Bank posed a challenge. The finalisation of all Board appointment was not concluded due to finalisation of vetting

for fit and proper person by SARB.

Current StatusThe external auditors finalised the fit and proper assessment of the shortlisted Board candidates.

Furthermore with regard to registration of Postbank, Minister of Finance has been requested to exempt Postbank from complying with the Banks Act requirements of public company as SAPO is a State-Owned Entity.


OVERSIGHT (3)


OVERSIGHT (3)

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Africa ICT Infrastructure Programmes (fully achieved) Advancing Broadband in SADC: With regard to aligning the RSA Broadband plan to the SADC ICT Infrastructure Master

Plan (SADC Regional Integrated Broadband Infrastructure Network), the Department facilitated and promoted the roll-out of the 4 Implementation Plans in line with the SADC Regional Broadband plan, namely Digital Development Implementation Plan; Digital Readiness Implementation Plan; Digital Future Implementation. Plan; and Digital Opportunities Implementation. Plan.

Advancing PIDA In advancing the AU PIDA, the Department advanced 3 programmes, namely Radio

Frequency Spectrum and DTT; Regional Internet Exchange Points and Cybersecurity. These programmes are aimed at providing secure, reliable and efficient infrastructure network in the continent.

Advancing DTT programme To support the DTT roll-out, South Africa supported the development of a SADC TV

Bouquet, to be on open, free network for region. This will contribute to regional integration, social cohesion, promote indigenous language and culture. This project is to be supported by a SADC TV Bouquet Content Aggregator, at which Sentech will participate in the Pilot phase.

Programme 2: ICT INTERNATIONAL AFFAIRS (1)Programme 2: ICT INTERNATIONAL AFFAIRS (1)

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Strategic multi-lateral partnerships (partially achieved) Developed a report to influence the outcomes of Postal Strategy Conference and various positions

were developed that will pave the way for the adoption of a new World Postal Strategy. Contributed towards the Dubai Action Plan through engaging on African positions for WTDC within

the Africa group and through National preparatory meetings. The Department prepared a report on the WTDC outcomes and activities of the ITU-D sector to facilitate national implementation.

With regard to Preparations and Planning for World Radio communication Conference 2015, the Department attended SADC, African and Multilateral meetings to develop and advance positions with regard to the use of spectrum for mobile broadband.

Areas of under-achievement: The Outcomes report on the High Level Postal Strategy Conference could not be developed as

planned due to a postponement which was out of the control of the Department.

Current Status

Africa through DTPS as the Chair of the Committee 3 of Strategy group developed the structure and content of the draft future Istanbul Postal Strategy under the auspice of Universal Postal Union.

The DTPS has engaged Brazil, Canada, Kenya, India, Sweden for the study tour with regard to the reviewing policies that governing the postal sector, including the regulation of Extra-Territorial Offices of Exchange (ETOEs), which has been a matter of intense debate within the UPU over the years. Only India and Kenya responded on undertaking the study tour, the DTPS has then considered to extend the scope with these two countries. The Department has already commenced engaging Brazil, Canada and Sweden.

Programme 2: ICT INTERNATIONAL AFFAIRSProgramme 2: ICT INTERNATIONAL AFFAIRS

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Bilateral Programmes with countries of the North and South (partially achieved) Developed RSA position paper on strategic ICT projects within BRICS for the 6th BRICS

Summit where it was subsequently adopted and included in the Fortaleza Declaration. Participated at the 8th Policy Consultative Conference between South Africa and South

Korea in Seoul where it succeeded in placing key proposals on cooperation in the fields of ICT to Korean counterparts for their consideration.

With regard to negotiating two Bilateral Agreements/MOUs with countries of the South, Bilateral consultations were held with Mexico at DIRCO in August 2014.

Furthermore, the department also participated in the BRICS interdepartmental meeting and developed a position paper on e-Commerce in support of the BRICS Cybersecurity Programme.

Areas of under-achievement: The Programmes of Action on Bilateral Agreements/MOUs with identified countries could

not be finalised as planned.Current StatusProgrammes of Action has been signed with China regarding the implementation of agreed areas under ICTs and the working group comprising of officials from both sides is to be finalised to commence with planning phase.

Furthermore negotiations to formalise bilateral relations with India has been concluded, the department is finalising arrangements for signing of the documents by both Ministers.


23


ICT Trade and Investment opportunities (partially achieved) A Workshop was conducted with industry to highlight the investment opportunities and

possible trade negotiations programme. This was jointly held with the National preparatory workshop for ITU Plenipotentiary Conference to cut cost.

Draft ICT Donor Coordination Guidelines were developed and will be finalised after consultations with the relevant stakeholders

Areas of under-achievement: The donor coordination guidelines could not be finalised and approved as planned as it was

identified that to be effective, the donor coordination guidelines need to be informed by the ICT policy review process as well as new developments in terms of receiving donor funding as a Country

Current StatusSouth Africa is no longer a recipient of donor funding due to withdrawal of donor funding by several countries including the British DFI, Danish DANIDA and the Swedish –SIDA

South Africa is now providing international development assistant to other countries in the Region. e.g. ICASA is providing Regulatory Capacity building to other regulators.

MDGs expired and will be replace by Sustainable Development Goals (SDG) and this has a new financing framework.


24


BDM Public Awareness programmes (Not achieved)

The Department was unable to implement the BDM Public Awareness campaigns in any of the Provinces as planned.

Areas of under-achievement: The Implementation of the BDM Public Awareness programmes largely impacted by

delays in the broader BDM programme as well as the finalisation of the BDM Policy which was impacted by the reconfiguration of the Department.

Furthermore, all project activities related to the BDM Public Awareness programmes were suspended due to the outcomes of the Presidential Proclamation which had an impact on the mandate and functions of the Department, with specific reference to the broadcasting related functions. Such functions were taken over by the Department of Communications

Programme 1: ADMINISTRATIONProgramme 1: ADMINISTRATION

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Internal Control framework (partially achieved)

The Internal Control Framework was developed, and implementation commenced during the period under review.

Furthermore, its implementation was monitored and evaluated.

Areas of under-achievement: Not all elements of the Internal Control Framework were fully implemented

Current StatusThe current Internal Control Framework was revised and approved in line with Audit findings raised by the Auditor-General.

Programme 1: ADMINISTRATIONProgramme 1: ADMINISTRATION

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FINANCIAL PERFORMANCE

FOR THE 2014/15 FINANCIAL YEAR

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• Content – First level• Second level

• Third level

STATEMENT OF FINANCIAL PERFORMANCE (1)STATEMENT OF FINANCIAL PERFORMANCE (1)

2014/15 2013/14

REVENUE R’000 R’000

Annual appropriation 2 236 657 2 372 117

Departmental revenue 1 672 004 1 711 942

Direct Exchequer receipts - -

Aid assistance - -

TOTAL REVENUE 3 908 661 4 084 059

Current expenditure

Compensation of employees 183 930 169 682

Goods and Services – operational exp. 234 385 597 884

Interest and rent on land - 6

Total current expenditure 418 315 767 572

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• Third level

2014/15 2013/14

R’000 R’000

Transfers and subsidies * 1 752 580 1 591 933

Expenditure for capital assets

Tangible capital assets 10 213 2 654

Software & other intangible assets 205 72

Total expenditure for capital assets 10 418 2 726

Financial transactions in assets & liabilities

363 555

TOTAL EXPENDITURE 2 362 786 2 362 786


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• Third level

2014/15 2013/14

R’000 R’000

Voted funds surrendered 54 981 14 072

Departmental revenue 1 672 004 1 711 942

Direct Exchequer receipts - -

Transferred to National Treasury

1 726 985 1 726 014


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• Third level

APPROPRIATION STATEMENT APPROPRIATION STATEMENT

2014/15 2013/14

Programme

Final Appro-priation

Actual Expen-diture Variance

Expendi-ture as % of final

appro-priation


Actual Expen-diture

1. Administration 237 525 226 641 10 884 95.4% 212 084 210 443

2. ICT International Affairs and Trade

45 667 45 431 236 99.5% 36 664 41 405

3. ICT Policy Development

111 347 78 183 33 164 70.2% 88 965 88 794

4. CT Enterprise Development

786 602 785 781 821 99.9% 759 009 746 749

5. ICT Infrastructure Development

1 055 516 1 045 640 9 876 99.1% 1 275 395 1 275 395

TOTAL 2 236 657

2 181 676 54 981 97.5% 2 372 117 2 362 786

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• Third level

SUMMARY OF ECONOMIC CLASSIFICATIONSUMMARY OF ECONOMIC CLASSIFICATION

2014/15 2013/14

Economic Classifi-cation

Final Appropria

-tion

Actual Expen-diture

VarianceVariance

as% against

final allocation


Actual Expenditure

Current payments

463 686 418 315 45 371 (9.8)% 757 983 767 572

Transfers and subsidies

1 762 189 1 752 580 9 609 0.5% 1 608 417 1 591 933

Payments for capital assets

10 419 10 418 1 0% 5 162 2 726

Payment for Financial assets

363 363 - 0% 555 555

TOTAL 2 236 657 2 181 676 54 981 2,5% 2 372 117 2 362 78632



• Third level

DETAILS OF TRANSFER PAYMENTS (1)DETAILS OF TRANSFER PAYMENTS (1)

Adjusted Appropriation Act

R’000

Actual Transfer

R’000

Variance

USAASA 65 376 65 376 -

USAF 49 988 49 988 -

USAF – Set Top Box Subsidy 791 000 791 000 -

ICASA 376 221 376 221 -

NEMISA 37 859 37 859 -

Sentech – Digitisation 138 805 138 805 -

SABC: Public Broadcaster 97 199 97 199 -

SABC- Channel Africa 47 413 47 413 -

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• Third level

Adjusted Appropriation

Act R’000

Actual Transfer

R’000

Variance

SABC: Digital Migration Project 62 000 62 000 -

SABC: Programme Production 11 183 11 183 -

SABC: Community Radio Stations 9 373 -

Sector Education and Training Authority: ISETT-SETA

1 199 1 199 -

SA Post Office Ltd 50 000 50 000 -

International Telecommunications Union

16 204 16 204 -


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• Third level

Adjusted Appropriation

Act R’000

Actual Transfer

R’000

Variance

Universal Postal Union 5 315 5 315 -

African Telecommunication Union 927 927 -

Pan African Postal Union 862 862 -

Commonwealth Telecommunication Organisation

418 418 -

Organisation for Economic and Cultural Development

234 - 234


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RESPONSE TO AUDITOR GENERAL’S FINDINGS

FOR THE

2014/15 FINANCIAL YEAR

36

AUDITOR-GENERAL’S FINDINGS for 2014/15 (1)


37

In the Management Report for 2014/2015, the Auditor-General has raised the following repeat findings which demonstrates a trend of non-compliance and non-improvement:


Finding Number of times reported in previous 3 years

Action Plan

Payment to suppliers not made within 30 days

3 • Invoice tracking certificate introduced to identify bottlenecks in the payment of suppliers.

• A draft procedure manual on payment within 30 days developed for approval at the next OPSCOM meeting prior to implementation.

• An electronic invoice tracking system in the process of being developed.

Lack of Business Continuity Plan

3 • A draft Business Continuity Plan has been developed.• Finalisation is dependant on the outcome of the

department’s service delivery model which is currently being developed.

• The Department is also undertaking a Systems Architecture and Business Impact Analysis to further inform the finalisation of the Business Continuity Plan.



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Finding Number of times reported in previous

3 years

Action Plan

Poor internal controls regarding Inventory Management

2 A draft Procedure Manual on inventory and consumables verification and management has been developed and will be presented at the next OPSCOM meeting for approval and subsequent implementation.

Vacant funded posts not filled within 12 months/Vacant funded posts not advertised within 6 months

3 Filling of vacant positions are reliant on funding and measures have been put in place to fill funded vacancies within the prescribed timeframe through the prioritisation of critical vacancies in line with available funding. Vacant positions has been since costed and advertised.

Performance Agreements not concluded and submitted within the required timeframe

3 Consequence management measures have been put in place with regards to performance agreements not being concluded and submitted within required timeframe



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Finding Number of times reported

in previous 3 years

Action Plan

Lack of adequate asset management processes

2 A draft Procedure Manual on Asset Management has been developed and will be presented at the next OPSCOM meeting for approval and subsequent implementation.

Information Technology Governance (IT Vacancies)

2 The HR Unit together with the IT Unit is currently exploring alternative solutions to fill key IT vacancies as a matter of urgency.

Information Technology Service Continuity

2 • A Disaster Recovery Site has been established at both SITA and DTPS

• SITA was appointed to upgrade the IT infrastructure and are in the process of finalizing the implementation.

• The Disaster Recovery System was developed and tested in September and October 2015. The process is expected to be concluded in December 2015.

Resolved Audit Findings (2013/14) Resolved Audit Findings (2013/14)

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Findings Status

HR Management

• Adequate controls were put in place and as such only two performance agreements were not signed and proper disciplinary measures were meted out.

• The migration process was finalized and currently there is a process to fill vacant funded positions.

• Leave policy was developed and approved by the DG on the 31st of March 2014.

• Relevant HR Policies due to be reviewed were reviewed and extension were granted for those policies where the timeframe lapsed.

Supply Chain Management

• A checklist is in used to monitor the management of contracts. • DBAC members were inducted and disciplinary action taken against

members that transgressed the DBAC’s terms of reference. • Furthermore a contract roster has been implemented to track the expiry

dates for competitive bids, a Bid Register as well as a Deviation Register have been developed and implemented.

Payment of suppliers in 30 days (Partially Resolved)

• Receipt of invoices is now centralized and a template to track and monitor the payment of invoices is in place.

• The amount of invoices not paid within the 30 days has significantly gone down, invoices not paid are exceptions to the rule (for example suppliers who do not provide requested information in time)


THANK YOU

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Documents

PRESENTATION TO THE SELECT COMMITTEE DEPARTMENT OF TELECOMMUNICATIONS AND POSTAL SERVICES 2014/2015 ANNUAL REPORT 25 November 2015