372
REPORT To
MAYCO
I
till OF tAPE TOWN IISIXEKO SASEKAPA STAD HAPSTAD
1.
ITEM NUMBER:
2.
SUBJECT
Me 38/06/09
I
(LSU - 8340)
200912010 SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLANS
(SDBIPs) AND BUSINESS PLANS
2.
ISIHLOKO
UNIKEZELO LWEENKONZO LWANGO-2009/2010 KUNYE NEZICWANGCISO
ZOKUMISELWA KWEBHAJETHI (SDBIPs) NEZICWANGCISO ZOSHISHINO
2.
ONDERWERP
DIENSLEWERINGSEN
BEGROTINGSIMPLEMENTERINGSPLANNE
(SDBIPs) EN SAKEPLANNE VIR 2009/2010
3.
PURPOSE
To submit to the Committee for their consideration and recommendation, the
2009/2010 Directorate SDBIP information pack which contain the:
•
•
Directorate SDBIP
Departmental SDBIPs.
These documents underpin the 2009/2010 Corporate SDBIP that will be
submitted to the Executive Mayor for approval in terms of Section 53(1)(c)(ii) and
69(3)(a) of Act No. 56 of 2003: Local Government: Municipal Finance
Management Act (MFMA).
09_10 DIR_DEPT SDBIP REPORT.doc
[Template updated April2009j
Page 1 of6
373
4.
STRATEGIC INTENT
The SDBIP is a detailed plan for implementing the municipality's service delivery
as outlined in the Integrated Development Plan (IDP) and budget. It includes the
service delivery targets and performance indicators for each quarter which should
be linked to the performance agreements for senior management.
The
performance criteria contained in the SDBIP are designed to achieve Good
Governance and Regulatory Reform, as well as facilitating the accomplishment of
Council's other strategic focus areas i.e.
•
•
•
•
•
•
•
5.
Shared Economic Growth and Development
Sustainable Urban Infrastructure and Services
Energy Efficiency for a Sustainable Future
Public Transport Systems
Integrated Human Settlements
Safety and Security
Health,Social and Community Development
FOR DECISION BY
Audit Committee, Mayco
6.
EXECUTIVE SUMMARY
The 2009/2010 Directorate and Departments SDBIPs contain the objectives,
indicators and quarterly targets by which progress will be measured during the
2009/2010 financial year. These are derived from the Integrated Development
Plan of the City, which serves before Council on 27 May 2009, and are an
elaboration of the Five Year Corporate Scorecard contained in the IDP. The
Departmental Business Plans provides the narrative to understanding the
SDBIPs.
The purpose of this report is to submit the 2009/2010 Directorate's SDBIP
information packs to the Audit Committee for consideration and recommendation
to the Executive Mayor. The Directorate SDBIP information pack is attached as
Annexure A. The electronic versions will be placed on the city website at
www.capetown.gov.za/idp after it has been noted by Council.
09_10 DIR_DEPT SDBIP REPORT.doc
(Template updated April2009j
Page 2 of6
7.
7.
7.
RECOMMENDATIONS
374
7.1.
That the Audit Committee makes recommendation to the Executive Mayor
on the contents of the 2009/2010 Directorate Service Delivery and Budget
Implementation Plans and Business Plans.
7.2.
That the Mayoral Committee approves the 2009/2010 Directorate Service
Delivery and Budget Implementation Plans and Business Plans.
7.3
That Council notes the 2009/2010 Directorate Service Delivery and Budget
Implementation Plans and Business Plans.
ISINDULULO
7.1
Ukuba iKomiti yeMicimbi yeSebe yenze isindululo kuSodolophu
weSigqeba ngokumalunga neziqulatho zoNikezelo IweeNkonzo lowama2009/2010
kunye
neziCwangciso
zokuMiselwa
kweBhajethi
neziCwangciso zoShishino.
7.2
Ukuba
iKomiti
kaSodolophu/yoLawulo
mayiphumeze
uNikezelo
IweeNkonzo IweCandelo 10Lawulo lowama-2009/2010 neziCwangciso
zokuMiselwa kweBhajethi kunye neziCwangciso zoShishino.
7.3
Ukuba iBhunga maliqaphele uNikezelo IweeNkonzo IweCandelo 10Lawulo
lowama-2009/2010 neziCwangciso zokuMiselwa kweBhajethi kunye
neziCwangciso zoShishino.
AANBEVELING
7.1
Oat die ouditkomitee aanbevelings by die uitvoerende burgemeester maak
en
oor
die
inhoud
van
die
diensleweringsbegrotingsimplementeringsplanne en sakeplanne van direktorate vir
2009/2010.
7.2
Oat
die
burgemeesterskomitee
en
die
diensleweringsbegrotingsimplementeringsplanne en sakeplanne van direktorate vir
2009/2010 goedkeur.
7.3
Oat die
raad
kennis
neem
van
die
dienslewerings- en
begrotingsimplementeringsplanne en sakeplanne van direktorate vir
2009/2010.
09_10 DIR_DEPT SDBIP REPORT.doc
[Template updated April 2009)
Page 3 of6
375
8.
DISCUSSION/CONTENTS
8.1.
Constitutional and Policy Implications
The process is driven by legislation.
8.2.
Environmental implications
Does your report result in any of the following:
No
[gI
Yes
(if yes, please complete the section below by clicking on the relevant tick boxes)
Loss of or negative impact on natural space
and/or natural vegetation, rivers, vleis or
wetlands?
An increase in waste production or
concentration, pollution or water usage?
D
Loss of or negative impact on the city's
heritage, cultural and scenic resources?
D
D
Development or any construction within
500m of the coastline?
D
Does your activity comply with the National Environmental Management Act (NEMA)?
(mark by clicking on the tick box)
Yes
D
No
D
Does your report complement and support the City's approved IMEP strategies?
(if yes, please select from list below by clicking on the relevant tick box)
Biodiversity Strategy and
Biodiversity Network
Environmental Education
and Training Strategy
Integrated Waste
Management Strategy
D
D
D
Coastal Zone
Management Strategy
Heritage Management
Strategy
Invasive Species Strategy
D
D
Energy and Climate
Change Strategy
Air Quality
Management Plan
D
D
D
Do the activities/actions arising from your report:
(if yes, please select from list below by clicking on the relevant tick box)
Enhance Cape Town's unique environmental
assets?
8.3.
D
Negatively impact on Cape Town's
unique environmental assets?
D
Legal Implications
The process of preparing a Service Delivery and Budget implementation
plans must inter alia, comply with:
Section 53 (1 ) (c)(ii) and 69(3)(a) of Act No. 53 of 2003: Local Government:
Municipal Finance Management Act.
09_10 DIR_DEPT SDBIP REPORT.doc
[Template updated April 2009)
Page 4 of 6
8.4.
Staff Implications
376
Does your report impact on staff resources or result in any additional staffing resources
being required?
8.5.
No
[8J
Yes
0
Risk Implications
Does this report and/or its recommendations expose the City to any risk?
(Le. does it have any adverse influence on service delivery?)
No
[8J
Yes
8.S.
0
Other Services Consulted
All relevant Directorates
09_10 DIR_DEPT SDBIP REPORT.doc
[Template updated April2009j
Page 5 of6
377
ANNEXURES
Annexure A:
Directorate and Department Service Delivery and Budget Implementation
Plans and Departmental Business Plans
FOR FURTHER DETAILS CONTACT:
NAME
CONTACT NUMBERS
E-MAIL ADDRESS
DIRECTORA TE
FILE REF No
SIGNATURE: DIRECTOR
I
Riaan Vosloo
0214003879
Riaan. vosloo@capetown.gov.za
Internal Audit
0'
o
LEGAL COMPLIANCE
REPORT COMPLIANT WITH THE PROVISIONS OF
COUNCIL'S DELEGATIONS, POLICIES, By-LAWS
AND ALL LEGISLATION RELATING TO THE MATTER
UNDER CONSIDERATION.
NON-COMPLIANT
(Author to obtain signature before submission to
Executive Support)
COMMENT:
DATE
Comment:
CHIE.F f+v.crr~~
EXECtl
[Compulso to Insert name]
(Author to obtain signature before submission to
Executive Support)
DATE
0'3
~-=+=~~~----------~
,",OT'",rc>
09_10 DIR_DEPT SDBIP REPORT.doc
[Template updated April2009j
submission to Executive Support)
Page 6 of6
('II GF UPE lGlIN
ISlm~ 5~SHm
mD UHmi
DIRECTORATE BUSINESS PLAN
2009/2010
DIRECTORATE
: INTERNAL AUDIT
CHIEF AUDIT EXECUTIVE: ZULPHA ABRAMS
Contact Person
: Riaan Vosloo
Page 1 of 8, Business Plan dept 0910 doc. doc
~
00
1.
EXECUTIVE SUMMARY
The Directorate: Internal Audit's mission is to provide independent, objective assurance and consulting services designed
to add value and improve the organisation's operations. It helps the organisation accomplish its objectives by bringing
about a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and
governance processes.
2
PURPOSE AND OBJECTIVES
The Directorate: Internal Audit's vision is to be recognised by the City and the audit industry as a unit adding value and
contributing to the achievement of the City's goals. To assist the City to become known for its effective and equitable
service delivery and to distinguish itself as a well governed and efficiently run administration.
3.
LEGISLATIVE IMPERATIVES
In terms of the Municipal Finance Management Act No 56 of 2003 (UMFMA") as amended, the City Manager must ensurethat the CoCT has and maintains inter alia effective, efficient and transparent systems of financial and risk management
and internal controls.
-....l
Section 165 of the MFMA prescribes that an internal audit unit must:
t:.c
(a)
prepare a risk-based audit plan and an internal audit program for each financial year;
(b)
advise the accounting officer and report to the audit committee on the implementation of the internal audit plan
and matters relating to(i)
internal audit;
(ii)
internal controls;
(iii)
accounting procedures and practices;
(iv)
risk and risk management;
W
Page 2 of 8. Business Plan dept 0910 doc.doc
(v)
(c)
performance management;
(vi)
loss control; and
(vii)
compliance with the MFMA, the Annual Division of Revenue Act and any other applicable legislation; and
perform such duties as may be assigned to it by the accounting officer.
S62(1)(c)(ii) of the MFMA also states that the accounting officer of a municipality must ensure that the municipality has and
maintains effective, efficient and transparent systems of internal audit operating in accordance with any prescribed norms
and standards.
The Directorate: Internal Audit operates in terms of and is governed by the International Standards of the Institute of
Intemal Auditors (IIA). an international professional body.
4.
Partners and Stakeholders in the Strategy Plan (key stakeholders of the plan)
Partnersl Stakeholders
City Manager and all
Executive Directors
Roles and Responsibilities
~
t:X')
•
acknowledges responsibility for the implementation of corrective
action; or
•
is of the opinion that the effects of the findings from the audits are
immaterial or the risk is too low to warrant implementation of the
recommendation and that management accepts responsibility to take
no action; or
resolution on the decision of residual risk acceptance if level of risk deemed
unacceptable to the organization by the Chief Audit Executive.
Audit Committee
An independent oversight body which must advise the City of Cape Town, its
political office bearers, the Chief Finance Officer and management staff of the
Page 3 of 8. Business Plan dept 0910 doc.doc
~
[SCOPA
Council on matters relating to internal financial control and internal audits, risk
management, accounting policies, the adequacy, reliability and accuracy of
financial reporting and information, performance management, effective
governance, compliance with relevant legislation, performance evaluation and
any other issues referred to it by Council from time to time within the ambit of
their Terms of Reference.
Committee established in terms of S79 of the Municipal Structures Act 117 of
1998. SCOPA is the mechanism through which Council exercises oversight over
the expenditure of public funds within the ambit of their Terms of Reference.
------
Risk Management
Risk Management relates to how an organisation identifies analyses and
responds to those risks that could potentially impact its ability to realise its
objectives. The City's Risk Management function assists Council and
management in developing systems to identify, assess, mitigate and report
material risks.
Forensics
Responsible for fraud prevention and investigations.
AG
Provides an audit opinion on the fair presentation of the annual financial
statements of the City and the consolidated annual financial statements. Coordination of audit work would facilitate efficient service delivery.
Mayco and Council
Mayco risk identification and decisions are considered in determining the scope
of the audit plan. Mayco and Council note significant issues raised by Internal
audit and the impact on the organisation.
~
(.)0
.....
Page 4 of 8. Business Plan dept 0910 doc.doc
5.
RESOURCES (Financial and Staff)
The budget and resources for the directorate for 09/10(08/09) is as follows:
,-~ ~
~
~
----~
-------
~
Capital budget
09110
08109
%CIhange
425,727
198,415
11 4%
31,760,716.14
28,432,143
11 .7%
57
52
9. 6%
----
Operating budget
I---~
~
Posts as per approved organogram at 1
July
------
,
6.
Current vacancies (May 09)
2
------
9
BACKLOGS AND RESOURCE CONSTRAINTS (if applicable)
Critical success factors
•
•
•
•
•
c:,...:)
Efficiency of the Corporate HR Recruitment and Selection process in the filling of critical vacancies;
A policy developed and implemented around continuity and succession planning;
Successful establishment and use of the Enterprise Risk Function at the City;
Attraction and retention of professionally qualified internal auditors
Implementation of corrective action by relevant Directorates.
00
~
Key challenges
•
•
•
•
•
Remain relevant in changing circumstances
Up-skill staff
Awareness and importance of job descriptions
Performance assessments of staff
Implementation and enforcement of audit methodology
Page 5 of 8~ Business Plan dept 0910 doc. doc
•
•
•
•
•
•
•
•
•
Additional staff capacity to enhance service delivery
Improve staff morale
Create Personal development Plans for staff
Development and retention of specialised knowledge
Co-ordination of cross functional audit approach
Change management
Integrated assurance with other service providers
Stakeholder relationships
Timeliness of audit deliverables
Developing and retaining staff
•
Providing challenging, varied assignments
•
Ensuring quality supervision and communication
•
Ensuring staff participates in projects from start to finish, to learn all phases of the audit process
•
Providing opportunities to lead (in-charge) projects
•
Rotation through various audit teams and/or audits of various business units
•
Providing continuous professional development opportunities
~
00
('J.;;I
7.
ASSUMPTIONS AND RISKS
A risk workshop was held in April 2009 with the Internal Audit Management Team. The workshop was facilitated by the risk
section at the City.
The existing inherent risk register drafted in March 2008 was revisited by plotting both current controls and actions to
improve with related target dates and actions owners.
Page 6 of 8. Business Plan dept 0910 doc.doc
Priority 1 Inherent risks identified as per Directorate: Internal Audit Risk Register
•
•
•
•
•
•
•
8.
Resource 1 Skills capacity constraints
Lack of co-ordinated assurance effort
Inadequate Performance Management monitoring
IT Down-time Dependence on IT for audit process
Ineffective Risk Management structures in the City
Lack of achievement of the internal audit plan expectations
Limitation on access to information, premises and staff
STRATEGIC ALIGNMENT TO THE IDP
Strategic Focus Area 8: Good governance and regulatory reform refers.
Internal Audit will assist management by providing independent reviews on the governance, control and risk environment and
help determine compliance to legislation.
A corporate scorecard indicator
c,....:)
00
Indicator - 8B.7 Percentage audit findings resolved as per follow up audits
~
A corporate scorecard indicator was introduced to the corporate scorecard in the 2007/2008 financial year.
This indicator measures implementation of controls to address the audit findings and resulting risk areas once follow up
audits are performed. These are control issues that require monitoring and implementation across the City. This indicator
therefore provides evidence of improvement in the control environment.
Internal Audit will be responsible for the monitoring and reporting of the number of recurring findings to ensure that risk areas
identified in audit reports are adequately addressed and mitigated by management. .
Page 7 of 8. Business Plan dept 0910 doc. doc
9.
OBJECTIVES AND INDICATORS OF THE STRATEGY I OPERATIONAL PLAN
Refer to attached 2009/2010 Directorate Internal Audit scorecard. (Appendix 1)
10.
AUTHORISATION
The undersigned do hereby indicate their agreement with the contents of this document and the outcomes.
Name
Date
~~____~I~r ~~
:27!c&jOj
Chief Audit Executive
Senior Audit Manager
C -he..111t! t;siuvr s.
Senior Audit Manager
Iv_'~
1~/v'..T~ iN~
J.-1/or/01
---------t-I
Senior Audit Manager
Rp····1?rlWn-t/)t/l-
~---------II--=------
Senior Audit Manager
Senior Audit Manager
11.
w
-~
K·~
00
(,J"~
I~--
R.'jof-T W}
APPENDICES:
Appendix 1: Scorecard 09/10
Page 8 of 8. Business Plan dept 0910 doc.doc
A
I
B
C
I
I
D
E
F
I
G
J
H
I
I
J
K
I
L
M
I
2009/2010 DIRECTORATE INTERNAL AUDIT SDBIP
1
-----
-.
I
.!!!.
ALIGNMENT TO lOP
....
2
TARGETS
c:
Indicator
(To Include unit of measure)
a.
c
Objective
CD
SFA&
Corporate
Directorate
Scorecard
Objective No. Indicator No.
:i5
iii
c;
Baseline
08/09
ITarget In bracketa)
Annual Target
2009/2010
General
Comments
Frequency
..
l
0
30 Sept 2009
31 Dec 2009
31 Man:ll2010
30 June 2010
a.
3
To prepare and execute a risk
based operational audit plan
A prepared, submitted and
approved risk based audit plan
Approved 09110 Audit
Plan by 30106/09
annually
90% completion of
audit plan (10%
shorHall attributed to
ad-hoc assignments,
changing
circumstances and
changes in risk
rofilesl
quarterly
10%
30%
60%
90%
quarterly
70%
70%
70%
10%
Approved audit plan
4
To prepare and execute a risk
based operational audit plan
% projects completed as per
audit plan
Monitoring of audit reports and
quality control
% agreement with audit findings
by management
Monitoring of audit reports and
quality control
Evidence of 100% review for all
audit projects completed on
TeamMate
Monitoring of audit reports and
quality control
Achievement of "generally
conformed" rating as per Internal
Quality reviews
5
70%
New
.
6
1;.1...;1
100%
quarterly
100%
100%
100%
100%
quarterly
100%
100%
100%
100%
00
O":.l
1
New
8
88.3
95%
quarterly
15%
25%
65%
95%
9
Management of key financial and
governance areas such as
income control, cash flow,
Percentage of Internal Audit
Capital budget spent
indigent support. alternative
income opportunities, assets and
risk management
8804
95%
quarterly
24%
50%
14%
95%
10
Management of key financial and
governance areas such as
income control, cash flow,
Percentage of Internal Audit
indigent support, alternative
Operating budget spent.
income opportunities,assets and
risk management
..
Page 1
SDBIP 09 10 Dir Template.xls
A
.
B
C
D
E
F
..
Objective
(To Include unit of me.sunI)
08109
(Target In brackets)
c
:;;
Vi
SFA&
Corporate
Dlnlctorate
Scorecard
Objective No. Indlcalor No.
G
" ..nua
argel
2009/2010
H
I
-~
K
L
31 March 2010
30 June 2010
Fnlquency
c:
30 Sept 2009
&.
31 Dec 2009
M
\:jenera
Comments
i
3
Management of key financial and
governance areas such as
Monitoring of resolutions of audit
income control, cash flow,
findings as per follow-up audits
indigent support, alternative
performed.
income opportunltles,assets and
risk management
8B.7
11
Achieved
quarterly
I
------
Stakeholder satisfaction
12
-----
1--....
>60% customer satisfaction
rating for completed projects
60%
quarterly
._.
60%
60%
60%
60%
I
._.
Stakeholder satisfaction
>60% Audit Committee rating for
overall service delivery
New
60%
annually
60%
Stakeholder satisfaction
>60% SCOPA rating for overall
service delivery
New
60%
annually
60%
13
14
Ensure performance of all
Internal Audit staff, managed in
accordance with agreed policy
and procedures
..
Productivity % achieved as per
the approved time keeping
system
60%
quartel1y
60%
60%
60%
60%
.15
....
Ensure performance of all
Internal Audit staff, managed in
accordance with agreed policy
and procedu res
Evidence of review of
performance on projects
performed per staff member
100%
quartel1y
100%
100%
100%
C'"
~
00
... -.l
----
100%
16
------
Ensuring enhanced service
% budget spent on
delivery with efficient institutional
implementation of WSP
arrangements
6A4
17
-
...
6B.l0
18
90%
quartel1y
10%
30%
60%
90%
_ ..
----
Management of key financial and
governance areas such as
Income control, cash flow,
Percentage annual assets
Indigent support, alternative
verification process completed
income opportunities, assets and
risk management
100%
Page 2
annually
0%
0%
0%
..~--
100% completed
by 30 June
SDBIP 0910 DirTemplale.xls
A
B
C
D
E
F
..
Objective
(To include unit of measure)
08/09
<II
c
Corporata
Directorate
Scorecard
Objective No, Indicator No.
200912010
(Targetln brackels)
:;;
sFA&
G
.....nua arge[
I
J
K
L
30 Sept 2009
31 Dec 2009
31 March 2010
30 June 2010
H
Frequency
'iii
c
.
ag.
M
",enera
Commenls
II:
3
Ensuring enhanced service
% improvement in the positive
delivery with efficient institutional employee climate as per annual
arrangements
Culture Climate Survey
8A.5
19
-
31 % Corporataly
annually
NIA
NIA
NIA
31 % Corporately
85%
quarteny
85%
85%
85%
85%
..... __ .
Ensuring enhanced service
Percentage of capital projects
delivery with efficient institutional meeting original planned
arrangements
milestones
SA.S
.20
% improvement in the time taken
Ensuring enhanced service
Baseline to be
to close notifications ito the
determined on
delivery with efficient institutional
Corporate Works Management
arrangements
30.06.09
process
8A.?
21
12 % reduction in time
taken to close
notifications
(measured against the
baseline)
quarteny
-
. _. . . .
----
8A.3
Ensuring enhanced service
Staff availability as measure by %
delivery with efficient institutional
absenteeism
arrangements
8A.2
Ensuring enhanced service
Retention of Skills as measured
delivery with efficient institutional
by staff turnover.
arrangements
New
S 4% average for the
period 1 July 2009 to
30 June 2010
3% reduction
in time taken
to close
notifications
(measured
against the
baseline)
._.
6% reduction
in time taken
to close
notifications
(measured
against the
baseline)
9% reduction
in time taken
to close
notifications
(measured
against the
baseline)
12 % neduction in
time taken to close
notifications
(measuned against
the baseline}
. -
annually
NIA
NIA
quarteny
5 to 8% overall
turnover I 8 to
12% wilhin
skilled
categories
NIA
S 4% average for
the period 1 July
2009 to 30 June
2010
22
rE28
within skilled
categories
'II
23
~
~
26
r-
New
5 to 8% overall
turnover I 8 to 12%
Approv." by Executive Director:
Approved by Mayco Member:
_
lA~tti
If
Date:
5 10 8% overall 5 to 8% overall
5 to 8% overall
turnover I 8 to turnover I 8 to
turnover I 8 to
12% Within
12% within
12% within skilled
skilled
categories
skilled
categories
<:..<.,:)
00
00
categories
:P(k~/07
Dale:
--_
..
..
Page 3
-_
..
SDBIP 0910 Dir Template.xls