USAASA ANNUAL REPORT 2010/2011
PRESENTATION TO
THE PARLIAMENT PORTFOLIO
COMMITTEE
1st November 2011
REVIEW OF ANNUAL REPORT
2010/2011
USAASA ANNUAL REPORT 2010/11
FOREWORD
• Year under review brought new Board members and new EXCO
• The Agency has seen drastic changes in the financial year in question due to migration in
to the new structure.
• Foundational projects remained at the fore as they are critical to future project
sustainability.
• Migration to new structure resulted in significant project delays
USAASA ANNUAL REPORT 2010/2011
5
USAASA ANNUAL REPORT 2010/2011
GENERAL INFORMATION continued…
The Agency’s projects this year were critical foundation projects designed to enhance
the efficiency of the Agency in achieving its mandate.
In addition pioneering projects such as the Broadband projects were designed to ensure
sustainability of deployed infrastructure and to ensure the mainstreaming of technology
for development purposes.
USAASA ANNUAL REPORT 2010/2011
GENERAL INFORMATION continued…
VISION
USAASA is the leading organisation in the promotion of the goals of universal service
and access to Information Communication Technology services for socio-economic
development.
MISSION
To facilitate the establishment of access to ICT services in partnership with all
stakeholders towards achievement of an information society.
USAASA ANNUAL REPORT 2010/2011
GENERAL INFORMATION…
LEGAL AND CONSTITUTIONAL MANDATES
The Universal Service and Access Agency of South Africa (USAASA) is a State Owned Entity
established through the Electronic Communications Act, no 36 of 2005.
The Agency’s mandate is to promote the goals of universal access and universal service to
ensure that “every man, woman, and child whether living in the remote areas of the Kalahari
or in the urban areas of Gauteng can be able to connect, speak, explore and study using
ICT’s.
INTERNATIONAL TRIP 2010/2011
INTERNATIONAL TRIPS continued……
10
Pre-Determined Objectives
USAASA ANNUAL REPORT 2010/11
KEY PROJECTS
1. Set Top Box (STB) Subsidies as part of Broadcast Digital Migration (BDM) –
2. Increase in Broadband Access
3. Hand Over of existing Community Access Centres and School Cyber labs
4. New Public Access Centres (Rapid Deployment)
5. Development of the Universal Access and Service Strategy
6. Fund Manual Standard Operating Procedures for application of the USAF
USAASA ANNUAL REPORT 2010/2011
PROGRAMME PERFORMANCE
USAF
Programme overview
voted funds summary
1. STB scheme of Ownership & Support
R180 million
2. BDM capacity building
R17. 3 Million
3. Increase in Broadband Infrastructure
R13.5 million
4. Implementation of Handover Strategy
R23, 686, 300 million
5. New Public Access Centres
R13, 080 million
6. Development of the Universal Service & Access Strategy
R2,7 million
7. Development of Fund Manual
R2,1 million
USAASA ANNUAL REPORT 2010/2011
PROGRAMME PERFORMANCE
USAF
Budget adjustments
Programme
Voted funds
Adjusted
1. STB scheme of Ownership & Support (as
part of BDM)
R180 m
n/a
2. BDM capacity building
R13.7 m
n/a
3. Increase in Broadband Infrastructure
R13.5 m
n/a
4. New Public Access Centres
R13 (r.o.)
R16.6
5. Implementation of Handover Strategy
R23.6 m
R18.6
6. Development of the Universal Service &
Access Strategy
R2.7 m
R3.1
7. Development of Fund Manual
R2.1 m
n/a
8. Connectivity schools & cyber labs
(not received)
R3.5
Project 1: Set-Top (STB) Subsidies as part of BDM
OUTPUT
PERFORMANCE
MEASURE/
INDICATOR
TARGET
STB’s subscribed for Percentage of poor
367, 000
poor TV-owing
TV-owing
subsidised Set Top
households
households
Boxes distributed
subscribed (for
purchase of STBs as
part of Broadcast
Digital Migration
MILESTONE
Not Achieved.
Project put on hold
whilst awaiting for
the strategy to be
approved.
STB Subsidy – Historical Overview
•
BDM Policy specifies the use of the USAF to subsidize needy TV-owning
households
•
Cabinet approved a subsidy level of R490 or 70% towards the cost of an
STB per household for a total of 5m needy TV-owning households
•
This tallies to R2.45b in total from the USAF over the dual illumination
period. R180m was allocated during 2010/11.
•
USAASA allocated R17,2m over two years Capacity Building for BDM.
R7,4m was spent during 2010/11 financial year.
16
BDM Capacitation
• Communications Strategy & Plan.
• Means test proposal. Stakeholder Identification & Partnerships.
• Needy Households Identification Plan & Systems Design
• Project Charter & Operational costs @ 20%
• Network Infrastructure review @ 20% project costs
• Documentation review & Technical Review
17
Project 2: Increase in Broadband Infrastructure
OUTPUT
PERFORMANCE
MEASURE/
INDICATOR
TARGET
MILESTONE
Deployed
Broadband
Infrastructure
Number of
(declared)
underserviced
areas covered with
broadband
3 (declared) underserviced areas with
broadband
infrastructure.
In line with target a
competitive Bidding
Strategy was
developed and
achieved.
• Msinga Local
Municipality. A
local operator
was appointed to
roll out
infrastructure.
• Emalahleni &
Giyani Local
Municipalities
placed on hold.
Project 3: Community Access Centres and School Cyber Labs (Handover Project)
OUTPUT
PERFORMANCE
MEASURE/
INDICATOR
TARGET
MILESTONE
Fully functional and
sustainable access
centres
Percentage of
Access Centres
handed over and
fully functional
100% community
access centres and
school cyber labs
handed over and
sustainable over a
long term
Not Achieved.
Implementation of
the handover
strategy continued;
culminating in
completion of the
training program
and signing of MOU
for the first batch of
handover projects.
Other sites to follow.
Project 4: New Public Access Centres
OUTPUT
PERFORMANCE
MEASURE/
INDICATOR
TARGET
MILESTONE
Fully functional and
sustainable access
centres
Percentage of
Access Centres
handed over and
fully functional
100 new access
facilities deployed
Not achieved. 23
sites were secured
and construction
began. Delays due
to theft and site
identification.
Project 5: Development of the Universal Access and Service Strategy
OUTPUT
PERFORMANCE
MEASURE/
INDICATOR
TARGET
MILESTONE
Universal Access
and Service
Strategy Report
A Universal Service
Strategy which
encompasses clear
indication of access,
usage and uptake of
ICT appropriate
models of access
and funding.
Development of
the Universal
Access and
Service Strategy.
Not Achieved. A service
provider was contracted to
assist the Agency with the
development of the
strategy and has
completed the document.
The process of stakeholder
consultation and public
participation will be
undertaken in the next
financial year.
Project 6: Fund Manual and Standard Operating Procedures for Application of the USAF
OUTPUT
PERFORMANCE
MEASURE/
INDICATOR
TARGET
MILESTONE
Fund Manual and
SOP for the USAF
Fund Manual and
SOP adopted by
the Board and
DoC
Clear guidelines
for the
application of the
Fund Manual and
SOP for the USAF
Not Achieved. Service
provider was contracted to
assist the Agency with the
development of the strategy
and has completed the
document. The process of
stakeholder consultation and
public participation will be
undertaken in the next
financial year.
Project 7: Monitor and Evaluate Effective use and Social Appropriation ICTs
OUTPUT
PERFORMANCE
MEASURE/
INDICATOR
TARGET
MILESTONE
Development of
measureable ICT
access and impact
indicators
ICT Access and
impact indicators
report
Finalisation and
adoption of a list of
universal access
and impact
indicators
Not Achieved.
Report on ICT
access and impact
indicators
USAASA ANNUAL REPORT 2010/11
HUMAN RESOURCES
USAASA ANNUAL REPORT 2010/11
Post
Leve
ls
Car
Allowanc
e
Medic
al Aid
Subsid
y
Provident
Fund
Employer
Contribution
Per Annum
13th
Chequ
e
Housin
g Per
Annum
0
0
0
1497.36
0
0
Surname
Name
Designation
Date of
Appointment
Moleele
Phineas
Chief Executive Officer
01/10/2007
15
Package
/ Gross
102513
3
Mollo
Molefi
Executive Manager: BDS
01/09/2010
14
830504
0
0
0
1497.36
0
0
Mngadi
Thandeka
Executive Manager: Performance
16/07/2010
14
830504
0
0
0
1497.36
0
0
Hlubi
Andrew
Chief Financial Officer
03/06/2010
14
830504
0
0
0
1497.36
0
0
Moiloa
Makhotso
Senior Manager: Stakeholder
07/09/2009
13
795204
0
0
0
1497.36
0
0
Lamani
Winile
National Programme: Manager
26/10/2006
13
819240
0
0
0
1497.36
0
0
Scheepers
Sharonne
Senior Manager: Administration
21/04/2008
13
727248
0
0
0
1497.36
0
0
Mngqibisa
Sipho
Programme: Manager MP
21/04/2008
13
705912
60000
0
0
1497.36
0
0
Nivi
Trevor
Senior Manager: Research
16/02/2005
13
727248
0
0
0
1497.36
0
0
Makenete
Thabo
Manager: Broadcasting
07/05/2007
13
705912
0
0
0
1497.36
0
0
Mashiane
Jimmy
Chief Internal Audit
01/05/2009
13
727248
0
0
0
1497.36
0
0
Grobler
Sare
Board Secretariat
01/04/2007
13
727248
0
0
0
1497.36
0
0
Manamela
Joshua
Programme: Manager NW
01/06/2000
13
705912
60000
0
0
1497.36
0
0
Fenyani
Mantjie
IT Manager
01/06/2008
13
695475
0
0
0
1497.36
0
0
Ngcwembe
Linda
Senior Manager: Finance
01/11/2007
13
727248
0
0
0
1497.36
0
0
Mathinjwa
Aubrey
Manager Infrastructure
01/03/1997
12
567957
0
0
0
1497.36
0
0
Dlamini
Phumi
Senior Admin Officer
21/05/2007
11
438285
0
0
0
1497.36
0
0
Mahlangu
Khosi
District Manager: GP
17/07/2003
11
465180
60000
0
0
1497.36
0
0
UIF
USAASA ANNUAL REPORT 2010/11
Samons
Mongene
Manager: Research
02/02/2001
11
465180
0
0
0
1497.36
0
0
Abrahams
Thato
Communications Officer
06/12/2010
11
406839
0
0
0
1497.36
0
0
Sephiri
Mokgobo
Manager: Accountant
01/01/2011
12
482160
0
0
0
1497.36
0
0
Matsepe
Thato
Senior Manager IT
13/12/2010
13
705912
0
0
0
1497.36
0
0
Mbatha
Archie
Senior Manager SCM
13/12/2010
13
705912
0
0
0
1497.36
0
0
Nzuza
Sandile
District Manager: KZN
01/06/2003
11
438285
60000
0
0
1497.36
0
0
Zoko
Vusi
Manager Legal Services
01/04/2009
12
504180
0
0
0
1497.36
0
0
Xamesi
Jeanette
District Manager: EC
01/03/1997
10
304311
60000
2535
9
9600
1497.36
12168
38038.875
Sithole
Mandla
Programme Manager: KZN
03/03/1997
11
465180
60000
0
0
1497.36
0
0
Mafole
Pontsho
Programme Manager: FS
01/07/1999
11
458304
60000
0
0
1497.36
0
0
Tilimeni
Mawethu
Programme Manager: EC
01/04/1999
11
472155
60000
0
0
1497.36
0
0
Marima
Lesiba
Programme Manager: LP
01/01/2008
11
412941
60000
0
0
1497.36
0
0
Ramahlape
Daniel
Programme Manager: WC
01/05/2006
11
425427
60000
0
0
1497.36
0
0
9600
1497.36
12168
27872.25
Mlangeni
Magugu
Departmental Administrator
01/06/2003
9
222978
0
1858
2
Moremi
Silas
Chief Admin: Officer Finance
01/09/2000
9
240207
0
2001
7
9600
1497.36
12168
30025.875
Maluleka
Thilly
HR: Practitioner
01/06/2003
9
219681
0
1830
7
9600
1497.36
12168
27460.125
Ceda
Karabo
Communications Officer
01/06/2003
9
236658
0
1972
2
9600
1497.36
12168
29582.25
USAASA ANNUAL REPORT 2010/11
Mashaba
Evelyn
Departmental Administrator
03/03/1997
9
243810
0
2031
8
9600
1497.36
12168
30476.25
Mapela
Esme
SCM Admin
01/08/1998
10
299814
0
2498
5
9600
1497.36
12168
37476.75
Manyama
Moyahabo
Finance Administrator
16/03/2009
9
210084
0
1750
7
9600
1497.36
12168
26260.5
Mokone
Paul
OHS Administrator
10/09/2007
8
182073
0
1517
3
9600
1476.96
8240.
04
22759.125
Rangateng
David
HR: Practitioner
01/05/2002
9
219681
0
1830
7
9600
1497.36
12168
27460.125
Motlhabi
Tshepiso
HR: Practitioner
01/09/2007
9
219681
0
1830
7
9600
1497.36
12168
27460.125
Maselela
Maria
Front Desk Coordinator
01/06/2008
8
179382
1494
9
9600
1370.52
12168
22422.75
Makhafola
Khumo
Legal Administrator
04/08/2008
8
179382
0
1494
9
9600
1497.36
12168
22422.75
Sekome
Roneah
Registry Officer
02/03/2009
8
176733
0
1472
8
9600
1248.84
12168
22091.625
Mosioa
Caroline
Cleaner
01/10/2010
2
55830
0
4652.
5
9600
654.36
12168
6978.75
Mbele
Grace
Cleaner
01/10/2010
2
55830
0
4652.
5
9600
654.36
12168
6978.75
USAASA ANNUAL REPORT 2010/11
Kgomo
Japhter
IT End User
01/12/2010
9
206982
0
1724
9
9600
1497.36
12168
25872.75
9600
1497.36
12168
25872.75
Mahloane
Mando
PA to CFO
06/12/2010
9
206982
0
1724
9
Mohlapo
Mary-Ann
PA to BDS
06/12/2010
9
206982
0
1724
9
9600
1497.36
12168
25872.75
Msibi
Nomthandazo
PA to CS
01/01/2011
9
206982
0
1724
9
9600
1497.36
12168
25872.75
0
1724
9
9600
1497.36
12168
25872.75
9600
1497.36
12168
32292.75
Dlamini
Gontse
Board Administrator
01/01/2011
9
206982
Mbangi
Mzuqhamile
Internal Auditor
01/12/2010
10
258342
0
2152
9
Bokaba
Tshepiso
PA to CEO
01/01/2011
10
258342
0
2152
9
9600
1497.36
12168
32292.75
Ramosebud
i
Hilda
Internal Auditor
01/01/2011
10
258342
0
2152
9
9600
1497.36
12168
32292.75
9600
1497.36
12168
25872.75
Matlana
Nozibonelo
Provincial Administrator: FS
01/03/2011
9
206982
0
1724
9
August
Anathi
Provincial Administrator: WC
01/03/2011
9
206982
0
1724
9
9600
1497.36
12168
25872.75
Masuku
Refiloe
Provincial Administrator: LP
01/03/2011
9
206982
0
1724
9
9600
1497.36
12168
25872.75
246714
54
600000
4730
85
25920
0
83267.7
6
32460
8
709627.13
HR continued…
Vacancies:
Executive Manager: Corporate Services
Provincial Programmes Manager: Northern Cape
Resignations & Promotions
Executive Manager: Corporate Services
Provincial Programmes Manager: Northern Cape
Performance Reward
6% levels 13-upwards
8% levels 1-12
29
HUMAN RESOURCE MANAGEMENT
POST LEVELS & GENDER STATISTICS
Race: AM = AFRICAN MALE, AF = AFRICAN FEMALE, CF = COLOURED FEMALE & WF = WHITE FEMALE
POSITION USAASA
USAASA
DPSA
DPSA
Number
LEVELS
LEVELS
CEO
15
EXECUTIVE MANAGERS
M
GENDER
F
RACE
15
1
1
14
DEPUTY
DIRECTOR
GENERAL
CHIEF DIRECTOR
14
3
2
1
SENIOR MANAGERS
13
DIRECTOR
13
12
8
4
MANAGERS
12
DEPUTY DIRECTOR
12
5
4
1
ADMINISTRATION MANAGER/ PROVINCIAL
PROGRAMME
MANAGERS/
LEGAL
OFFICER/
RESEARCH
MANAGER/COMMUNICATIONS OFFICERS/
INTERNAL AUDIT/ DISTRICT MANAGERS/
SCM OFFICERS
10 - 11
ASSISTANT MANAGER
10 - 11
23
11
12
ADMINISTRATORS/ FINANCE OFFICERS/
HR
OFFICERS/
RECEPTIONIST/
PROVINCIAL ADMINISTRATORS
8-9
6-9
18
4
14
04 AM
14 AF
HYGIENE SPECIALISTS
2 -5
CLERKS/
ADMINISTRATORS/
OFFICERS/
SECRETARIES
CLEANERS & CASUALS
1-5
2
0
2
2 AF
64
30
34
64
TOTAL
1 AM
2 AM
1 AF
8 AM
2 AF
1CF
1WF
04 A M
01 WF
11 AM
11 AF
01 WF
USAASA ANNUAL REPORT 2010/11
EMPLOYEE WELLNESS PROGRAMMES
• The Agency has deployed an employee assistance platform that enables each USAASA
employee access to a variety of discounted services from travel to children’s homework
assistance to medical and psychological services.
• In addition to the basic platform, the Agency has included telephonic and face-to-face
consultations with therapists with the option of assistance outside of medical insurance
limits.
• Monthly workshops on personal health, personal financial management, competitions and
emergency road assistance.
USAASA ANNUAL REPORT 2010/11
FINANCIALS
32
USAASA ANNUAL REPORT 2010/11
REPORTS TO THE FINANCIAL STATEMENTS
REPORT OFTHE AUDIT COMMITTEE
EFFECTIVENESS OF INTERNAL CONTROL
• The internal systems were tested and found to be ineffective, including deficiencies in the supply
chain management process, information technology and human resources, risk and prevention
plan and compliance with approved delegation of authority. However, corrective action is being
taken.
RISK MANAGEMENT
• A risk management strategy has been formulated and adopted. However the Operational Risk
Management Committee is not functional due to key role players and lack of adequate handover
plans that were developed by management were not fully implemented.
USAASA ANNUAL REPORT 2010/11
REPORTS TO THE FINANCIAL STATEMENTS
REPORT OF THE AUDIT COMMITTEE
GOVERNANCE
• Majority of governance processes were found to be adequate and partially effective. Management
and the Board have put mechanisms to ensure adequacy and effectiveness of governance
practices.
EVALUATION OF FINANCIAL STATEMENTS
• Financial statement of USAASA & USAF were found to comply with all applicable accounting
practises
• The committee confirms that the adoption of the going concern assumption in preparation of the
Annual Financial Statements for USAASA & USAF were appropriate.
USAASA ANNUAL REPORT 2010/11
REPORT ON THE FINANCIAL STATEMENTS
The financial statements present fairly, in all material respects, the financial position of the
Universal Service and Access Agency of South Africa as at 31 March 2011, and its
financial performance and cash flows for the year ended in accordance to GRAP & PFMA.
USAASA ANNUAL REPORT 2010/11
REPORT ON THE OTHER LEGAL REGULATORY REQUIREMENTS
Predetermined Objectives
•
Targets were not specific in clearly identifying the nature and required level of performance
•
Targets were not measurable in identifying the required performance
Planned
•
71% of the planned and reported indicators/measures were no clear, with an unambiguous definition to allow
for data to be collected consistently.
Expenditure Management
•
Did not take effective and appropriate steps to prevent irregular expenditure as per the requirement of the
PFMA
Annual Financial Statements, Performance and Annual Reports
•
Did not submit financial statements for auditing within two months after the end of the financial year as per the
requirement of the PFMA
•
Submitted financial statements for auditing that were not prepared in all material aspects in accordance with
generally accepted accounting practices as required by the PFMA, with regards to plant, equipment and world
cup disclosures which were subsequently corrected.
USAASA ANNUAL REPORT 2010/11
REPORT ON THE OTHER LEGAL REGULATORY REQUIREMENTS continued…
STRATEGIC PLANNING & PERFORMANCE MANAGEMENT
•
Did not ensure that the public entity has and maintained an effective, efficient and transparent system of
internal control regarding performance, which described and represented how the entity processes
performance planning, monitoring, measurement, review and reporting were conducted, organised and
managed as required by the PFMA.
ASSET MANAGEMENT
•
Did not perform and keep records of an asset reconciliation and creditors reconciliations as per the PFMA
USAASA ANNUAL REPORT 2010/11
REPORT ON THE OTHER LEGAL REGULATORY REQUIREMENTS continued…
INTERNAL CONTROL
•
LEADERSHIP – Did not ensure that performance management systems and processes are in place before
and during the strategic planning session to ensure that targets are measurable, time bound, specific,
accurate and realistic.
•
FINANCIAL & PERFORMANCE MANAGEMENT – The Agency used a service provider to manage the fixed
asset register and bar-coding however, it failed to deliver on time and as a result the AFS were delivered late
for audit purposes.
•
GOVERNANCE – There are no business continuity plan, disaster recovery plan and fraud prevention plan
USAASA ANNUAL REPORT 2010/11
FORMAT OF THE AUDIT REPORT continued….
AUDIT OPINION - USAASA
• The financial statements fairly present fairly, in all material respects, the financial
position of the Universal Service and Access Agency of South Africa as at 31 March
2011, and its financial performance ans cash flows for the year then ended in
accordance with SA Standards of GRAP and in the manner required by the PFMA
EMPHASIS OF MATTER - USAASA
• Irregular expenditure : to the amount of R490,000 as a result of splitting of tender
• Material under spending of the budget
• Fruitless and wasteful expenditure : to the amount of R66, 000 as result of capped
leave being taken over by the Agency
USAASA ANNUAL REPORT 2010/11
FORMAT OF THE AUDIT REPORT continued….
AUDIT OPINION – USAF
The financial statements fairly present fairly, in all material respects, the financial
position of the Universal Service and Access Agency of South Africa as at 31 March
2011, and its financial performance and cash flows for the year then ended in
accordance with SA Standards of GRAP and in the manner required by the PFMA
EMPHASIS OF MATTER - USAF
Attention is drawn to the material under-spending of the USAF in relation to the
R180million that was never transferred to the Agency by the Shareholder in respect of
the Broadcasting Digital Migration.
ANNUAL FINANCIAL STATEMENTS - USAASA
41
Notes to the Annual Financial Statements
Note pages 18 to 32 of the audited financial statements document.
ANNUAL FINANCIAL STATEMENTS - USAF
45
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
Note pages 14 to 21 of Audited Financial Statements
Annual Report 2010.2011\write ups\sare\USAF Annual Financial Statements-GRAP
2011.pdf
QUESTIONS?