director-general: mr. e africa 18 october 2011

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

2

OVERVIEW OF THE PRESENTATIONOrganisational Structure of the Department Restructuring ProcessPerformance of the Department Financial performance 2010/11Disaster InterventionsLGTAS / Outcome 9

3

1

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

5

• 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.

6

• 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

7

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

8

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

9

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

10

11

• 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)

12

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

14

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.

15


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.

16


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.

17

Response to concerns raised by Portfolio Committee on AR FY 2009/2010


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.

18



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



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.

20



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


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

22

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.

23

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%

24

Source: Audited DCoG Annual Report FY 2010/11

25

Progress against programme deliverables

26


27


28


29


30


31


32


33


34


35


36


37


38


39


40


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

41

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

42

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

43

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

44

THANK YOU!

Local Government is Everybody’s Business Be Part of IT!

47

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

48

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.

49

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.

50

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.

51

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

52

53

EVOLUTION CONT…DTA Organisational Structure

54

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…

55

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)

56

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

57

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

58

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

59

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.

61

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.

62

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.

63

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.

64

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;

65

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

66

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

67

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

68

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.

69

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.

70

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

71

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.

72

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

73

For the Portfolio Committee to note:

DTA 2010/2011 performance;The intervention made to address audit outcomes; and Challenges confronting the department.

director-general: mr. e africa 18 october 2011

Documents

sms structure

financial performance

sms posts vacant

annual report ar fy

dcog annual report fy

financial servicesmr

annual targetsinitiatives

financial year