DCOG ANNUAL REPORT FY 2010-2011
PRESENTATION TO THE PORTFOLIO COMMITTEE ON
COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS
Director-General: Mr. E Africa
18 October 2011
OVERVIEW OF THE PRESENTATION
Organisational Structure of the Department
Restructuring Process
Performance of the Department
Financial performance 2010/11
Disaster Interventions
LGTAS / Outcome 9
Response to concerns raised by the Portfolio
Committee on the Annual Report (AR) FY 2009/2010
8. Highlights: Annual Report FY 2010/11
9. Summary of Performance: FY 2010/11
10. Programme progress against annual targets
11. Initiatives to address Auditor-General’s findings
1.
2.
3.
4.
5.
6.
7.
2
OVERVIEW OF THE PRESENTATION
 Organisational Structure of the Department
 Restructuring Process
 Performance of the Department
 Financial performance 2010/11
 Disaster Interventions
 LGTAS / Outcome 9
3
MINISTRY
COOPERATIVE GOVERNANCE AND
TRADITIONAL AFFAIRS
INTERNAL AUDIT
DEPARTMENT OF COOPERATIVE
GOVERNANCE
DIRECTOR-GENERAL
Mr E Africa
DEPARTMENT OF
TRADITIONAL AFFAIRS
DIRECTOR-GENERAL
ANTI CORRUPTION
INSPECTORATE
CHIEF OPERATING OFFICER
Dr KL Sebego
BRANCH: PROVINCIAL AND
MUNICIPAL GOVERNMENT
SUPPORT
BRANCH: INFRASTUCTURE
AND ECONOMIC
DEVELOPMENT
BRANCH: POLICY, RESEARCH
AND KNOWLEDGE
MANAGEMENT SUPPORT
CHIEF DIRECTORATE:
LEGISLATIVE REVIEW AND
DRAFTING
Acting : Dr KL Sebego
Mr R Hansby
Mr T Fosi
Ms V Ndah
BRANCH: GOVERNANCE AND
INTERGOVERNMENTAL
RELATIONS
Mr KT Sigidi
1
BRANCH: NATIONAL DISASTER
MANAGEMENT CENTRE
Acting : Ms M
Sethusha
BRANCH: CORPORATE
AND FINANCIAL
SERVICES
Mr M Mtythda
CHIEF DIRECTORATE:
COMMUNICATION AND
MARKETING
Mr B Rakate
RESTRUCTURING PROCESS
• 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.
5
RESTRUCTURING PROCESS cont.
• 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)
6
Overview of Achievement FY 2010/11
Achieved, 56
Not Achieved,
38
Partially
Achieved, 25
32%
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
7
catered for in the APP 2011/12 and are currently being implemented
Expenditure Trends :2004/05 to 2010/11
R’000
50000000
44,456,410
45000000
40000000
35,348,095 36,016,101
35000000
30,029,716
30000000
24,573,267
25000000
20000000
15000000
15,957,562
13121077
10000000
5000000
0
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
 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.
8
Financial performance FY 2010/11
 The 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
Disaster Intervention
•
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)
11
Disaster Intervention
Process
When
By Who
Outcome
Declaration of National State of
Disaster (flooding & related
events Dec 2010 and Jan 2011)
21 January
2011
Minister: COGTA
8 Provinces
33 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- multidisciplinary 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
Response to concerns raised by the Portfolio Committee on the
CoGTA Annual Report FY 2009/2010
Concerns
Interventions by DCoG
Lack of progress on fire services
improvement, including the fact that
legislation was not yet presented and
no Board was in place. Deteriorating
infrastructure, management of stations
and lack of service in rural and
township areas
Legislation & Board
Consultation 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
Response to concerns raised by the Portfolio Committee on the
CoGTA Annual Report FY 2009/2010
Concerns
Interventions by DCoG
What 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
Concerns
Interventions by DCoG
How and by whom will cross-cutting issues
such as water and sanitation be addressed?
DCoG as a coordinating department relies on other lead sector
departments. The implementation forum on outcome 9 is a
platform for discussing strategies on cross cutting issues. Also a
joint Basic Service Task Team has been established with Human
Settlements
How will Operation Clean Audit succeed
when some incompetent or dishonest
municipal officials simply move from one
municipality to another
The enactment of the Municipal Systems Amendment require
appointment of skilled personnel and allows the Minister to
intervene where this is not complied with.
If the movement is due to corrupt practices the Act prohibits the
appointment of these officials for a period of 10 years.
Report back on the proposed amendments
to the Municipal Systems Amendment Bill
The Bill was amended and approved by Parliament before
March 2011. The draft regulations have been developed and are
currently under consultation.
How is the department going to deal with
R49 million spending on travel and
subsistence attributed to the turn-around
strategy?
The assessment of the State of local Government was a very
important exercise that provided the department with
opportunities for improved service delivery.
The department is now providing support through differentiation
based on the available data that was collected during the
assessments.
The total travel and subsistence for the 2010/11 has declined
significantly to R 38 million.
18
Response to concerns raised by Portfolio Committee on AR FY
2009/2010
Concerns
Interventions by DCoG
What is CoGTA doing on the
capacity of the provinces? Is the
support and monitoring that was
required of them under the
Constitution taking place, and what
progress is being made on
municipal internal capacity?
The department has a Provincial and Municipal Support
Branch which was established from the premise that
National department must exercise its mandate of
capacitating Provinces to provide appropriate support to
Municipalities. In this branch there is a full Chief
Directorate focussing on provincial support.
The draft bill on Monitoring, Support and Interventions
regarding provinces has been developed.
The Provincial Support Unit is undertaking consultations
with provinces as to how best the support can be
provided. The specific provincial sensitivities in this regard
are being taken into account.
How will CoGTA help unlock
unspent funds in municipalities and
address the substantial debt owed
to some municipalities by other
government departments,
particularly Department of Public
Works
DCoG in collaboration with PME and Public works have
established a task team that has finalized the aggregation
of debt by government per province.
The team has started with eThekwini, King Sabata
Dalindyebo and Port St Johns municipalities as pilots for
direct support in resolving the government debt related
19
issues.
Response to concerns raised by Portfolio Committee on AR FY
2009/2010
Concerns
Interventions by DCoG
How far has CoGTA gone in
implementing the findings and
recommendations from the AG?
The department developed and implemented a post audit
action plan on the issues raised by the AG. Progress on
the implementation of the plan was monitored throughout
the financial year using the various governance structures
within the department.
When will LGTAS likely to show a
real difference ?
The ultimate aim is that LGTAS as a strategy becomes
part of the sustained agenda of the department to achieve
outcome 9 Vision of an integrated, responsive and highly
effective local government system.
The examples of the successes of LGTAS include:
• Improvement in the access to basic services.
•Job opportunities created through CWP (89 689 job
opportunities created)
• Operation Clean Audit yielded an improvement from 113
unqualified audit opinions in 2008/09 to 120 in 2009/10 as
well as an improvement from 4 to 7 clean audits in these
financial years.
20
Response to concerns raised by Portfolio Committee on AR FY
2009/2010
Concerns
Interventions by DCoG
What is progress on building internal
capacity to run community work
programme
The department has assigned an
Executive Manager responsible for CWP,
the tender for implementing agents who
are intended to augment the programme
management for CWP is also currently
under adjudication.
National Treasury had suggested that too Annual Performance Plan FY 2011/12
many reporting responsibilities were being project on streamlining reporting
put on municipalities, which took officials
requirements is aimed at reducing the
away from doing the work on providing
burden of reporting.
services
Joint work is being done with NT and the
Presidency on the refinement of indicators,
the budget programme structure and the
Annual Report template of Municipalities
with a view of producing fewer reports
providing progress against selected key
indicators.
Concerns were raised on the R37 million
spending on consultants
21
Progress: concerns raised by Portfolio Committee on AR FY
2009/2010
Concerns
Interventions by DCoG
Is Sanitation a responsibility of CoGTA
or Water Affairs?
Sanitation has been officially transferred to
the Department of Human Settlements
(DHS). However, that does not take away
DCoG still has a responsibility to coordinate
support to provinces and municipalities
What is the department’s initiatives to
finalise the transformation process and
improve staff morale?
The departmental restructuring process is
substantially complete and a change
Management programme is currently being
developed.
CoGTA must cooperate with the
Presidency in its efforts to promote
evidence-based evaluations that could
produce concrete evidence and show
the impact.
The department is working closely with the
Presidency
22
Highlights of the FY 2010/11
1.
2.
3.
4.
5.
6.
7.
8.
The signing of delivery agreements between the Minister and the MECs
as well as Mayors in September 2010;
89 689 job opportunities were created through the community work
programme against a target of 87 000 opportunities;
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;
The Municipal Systems Amendment Act was finalised;
We worked closely with stakeholders in preparing for elections;
Milestone on the finalisation of the recruitment and placement process;
Disciplinary Regulations and Procedures for S57 Managers Promulgated
in February 2011; and
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
Provincial and Municipal
Government Support
Infrastructure and
Economic Development
Partially
Not
Achieved achieved Achieved
TOTAL
25
-
24
49
5
7
8
20
7
8
4
19
5
3
1
9
Administration
National Disaster
Management Centre
10
3
4
4
1
9
TOTAL
56
25
38
119
47%
21%
32%
Governance and IGR
Policy Research and
Knowledge Management
%
13
Source: Audited DCoG Annual Report FY 2010/11
24
Progress against programme deliverables
Annual
Legislation
programme was
submitted to
Parliament and
the Office of the
Leader of
Government
Business
Communication
support was
provided to key
programmes in
the department
e.g. CWP
provincial
workshops
Draft Human
Capital
Management
strategy has
been developed
ADMINISTRATION
The
Government
Programme of
Action (POA)
submitted on
time and
progress report
on outcome 9
submitted on
time
Annual Report
2009/2010 was
submitted to
parliament.
Quarterly reports
were developed
but approved later
than the due date
25
Progress against programme deliverables
The CD was
appointed
however the
Knowledge
sharing
Programme was
not
institutionalised
as planned
ICT for Knowledge
Management
Framework
Developed
Policy, Research
and Knowledge
Management
Policy support:
Assessment
conducted for
Transport Roads,
Electricity and
Water Sector
A draft Knowledge
Management
Strategy
developed
MR&E
framework
with
community
oversight
developed and
approved by
MinMeC
26
Progress against programme deliverables
Draft discussion
document
produced on
current model of
decentralisation
with proposals
for areas of
reform
Service Level
Agreement (SLA)
between the
DCoG and the
Special
investigation Unit
(SIU) signed to
Improve
management of
MIG
Governance and
Intergovernmental
Relations
Bill on National
Monitoring,
Support and
Intervention in
Provinces and
Provincial
intervention in
local Government
developed
Draft Green
Paper on
Cooperative
Governance
developed
MPRA
amendments Bill
was not submitted
to Parliament
because a
decision was
taken to present it
after the Local
Government
Elections
27
Progress against programme deliverables
District –wide interGovernmental Fiscal
Relations forums
were established in
the Eastern Cape and
the Western Cape
provinces
263 internal audit
units and 268 audit
committees
established; 103
Municipal Public
Accounts
Committees (MPACs)
also established
Governance and
Intergovernmental
Relations
Draft report with
proposals on the
review of the LGES
formula was
developed by 30 June
2010
234 municipalities
supported financially
through the MSIG to
prepare and submit
Annual Financial
Statements
Draft Grant
Coordination
Framework
developed
28
Progress against programme deliverables
Elected and
Appointed officials
were not empowered
to promote an ethical
culture because
PALAMA had to
evaluate the
accredited course
265 municipalities
are implementing
fraud prevention
plans and anticorruption
strategies
Governance and
Intergovernmental
Relations
Municipalities
audits
Improvements from
113 unqualified audit
opinions in 2008/09
to 120 in 2009/10 as
well as an
improvement from 4
to 7 clean audits
NT supported to
review the SCM
regulations and
this was
presented during
the budget
speech
29
Progress against programme deliverables
MIG:
1.6 million households
have access to water;
936 379 to sanitation
and 1 771 237 roads
554 977 community
lighting
CWP
89 689 work
opportunities created
by March 2011 The
programme was
implemented in 9
provinces, 45
Municipalities and in
417 wards
Infrastructure and
Economic
Development
A Final draft Report on
Municipal
Infrastructure Audit –
Water Sanitation and
Bulk Infrastructure has
been developed
Refuse and Waste
Management
coordination structure
established 1 National
and 9 provincial action
plans developed and
completed
MoUs for LED
signed with
Midvaal, Merafong
Emfuleni, Lesedi,
and Randfontein
municipalities
30
Progress against programme deliverables
Seven (7) out of
10 identified
municipalities
have been
supported
MSPs
implementation
Standard National
Indigent Register
for FBS
programme was
not developed
Infrastructure
and Economic
Development
83%
households
energised
against 85%
94%
households
access to water
supply
Statistics on
Free Basic
Electricity could
not be verified ,
work is being
done with
STATSSA
MIG Policy
recommendations
were not adopted
MIG policy reivew
was not approved
by cabinet due to
NT conditional
Grant review
process
31
Progress against programme deliverables
All preparatory
work on MISA
(SPV) completed
well on time,
however the
establishment has
been delayed by
prolonged
consultations and
approval process
Ward based
cooperatives
were not
established.
Concept
document was
developed
Infrastructure and
Economic
Development
MIG was
allocated to
identified urban
nodes however
spending is
slower than
anticipated
corrective actions
in place
Small town
regeneration
Supported
establishment of 1
corridor and
establishment of a
concept paper and
national strategy
on economic
regeneration for
towns
32
Progress against programme deliverables
Initial worn on
Councillor
Remuneration
Framework was
done and will be
completed in the
next financial year
Regulations on the
Participation of
Municipal officials
in elections
gazetted
Provincial and
Municipal
Government
Support
Amendments on
Municipal Systems
Act, 32 of 2000
were approved by
Parliament
Assessment
report on
legislation
impacting on
service delivery
developed
Spatial policy
inputs on urban
development will
be provided to the
NPC once the
strategy is
approved
33
Progress against programme deliverables
DRDLR is
responsible for the
Land Use
Legislative reforms
on Land-use
planning and
management
LGTAS Stakeholder
Strategy developed
to ensure for
managing and
monitoring
stakeholder
engagements and
Partnerships
Work as not
completed on draft
framework on
differentiated
approach to IDP
Provincial and
Municipal
Government
Support
LGTAS Knowledge
Management
Protocol was
developed and
adopted
LGTAS Report
based on municipal
and
provincial progress
reports were
presented
to MinMec and
Implementation
Forums
Delivery Agreement
on Outcome 9 was
signed by the
Minister, and MECs
on 30 September
2010
34
Progress against programme deliverables
Signed PAs
on Section 56
Managers
have
increased
from 76% to
86%
Desk top
research
Conducted on
the
performance
management
framework for
councillors
Provinces
supported to fill
vacancies but the
vacancy rate for
MMs has
increased from
13% to 18% and
for Section 56
managers 14% to
25%
Provincial and
Municipal
Government
Support
Provinces
supported to
assist
municipalities
with the
implementation
of PMS
Signed
performance
agreements for
Municipal
managers has
increased from
79% to 88%
35
Progress against programme deliverables
The State of Local
Government report
was not developed
The Siyenza Manje
Infrastructure
component has
been transferred to
DCoG
Provincial and
Municipal
Government
Support
Framework to
professionalise
LG was not
developed
Disciplinary
Regulations and
Procedures for
S57 Managers
Promulgated in
February 2011
Recruitment and
Retention Strategy
for specific
occupations and
professions in local
Government was
not developed,
tender advertised
36
Officials in
Limpopo
Province were
trained on the
new PMS
developed with
the DBSA;
Support was
provided to Host
Cities on 2010
FIFA World Cup
IGR forum. A
comprehensive
closeout report
was approved by
the Minister in
October 2010
The Bill
to strengthen
the Minister’s
powers to
regulate HR
systems and
procedures was
introduced to
Parliament
Provincial and
Municipal
Government
Support
Support the
development of
a report by
SRSA was
depended on
the SRSA
requests
All provinces
supported to
increase the
number of signed
PA of Municipal
managers .
Dedicated support
given to Chris Hani
and eMalahleni
municipalities
37
Progress against programme deliverables
A draft National
Revenue
Enhancement
Programme Plan
has been developed
Framework on the
reduction of red
tape was not
developed
National
Programme for
Clean Cities and
Clean Towns has
been Developed
implementation will
take place after the
pilot in the Eastern
Cape Province
Provincial and
Municipal
Government
Support
Policy proposals
for the revival of
LOGOLA was not
finalised,
conceptual work
is ongoing
Capacity Building
Plan for Local
Government
developed; and a
National Municipal
Capacity
Coordinating and
Monitoring
Committee
established
38
Progress against programme deliverables
Youth Managers
in 3 selected
provinces were
not trained to
mainstream
Youth
Development
MoU with Brazil –
August 2010.
India, Brazil and
South Africa
intergovernmental
Working group
established
Provincial and
Municipal
Support
46 municipalities
in FS,
Mpumalanga and
EC trained and
supported to
implement the
HIV and AIDS
Framework
SADC Local
Government
Forum has been
resuscitated
39
Progress against programme deliverables
A Disaster
Management 2010
FWC Master Plan
was developed and
approved by the
2010 FWC InterMinisterial
Committee (IMC).
Disaster
Management Centres
have been developed
in 19 District
Municipalities
5 Metros and 6
Provinces
National
Disaster
Management
Centre
Amended
Legislation on Fire
services was not
submitted to
Cabinet
Disaster Risk
Management
education training
Framework was not
completed
40
Response to AG report 2010/11
AG 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 expenditure
Goods 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
Conclusion
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
44
forward
1.
THANK YOU!
Local Government is Everybody’s
Business Be Part of IT!
PRESENTATION TO THE PORTFOLIO
COMMITTEE ON THE 2010/2011 ANNUAL
REPORT FOR THE DEPARTMENT OF
TRADITIONAL AFFAIRS
PROF MC NWAILA
DIRECTOR GENERAL
18 October 2011
46
PRESENTATION OUTLINE
Purpose of the Presentation
Mission, Vision and Strategic Objectives
Evolution of the Department
DTA performance information:
non financial; and
Financial information
Findings by Auditor General
DTA Post Audit Action Plan
Challenges
Recommendations
47
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.
48
VISION AND MISSION STATEMENT
Vision: A transformed, coherent and cohesive institution of
traditional leadership which plays a central role in
traditional affairs and governance and contributes
to rural development.
Mission: To provide coordinated support to the institution
of 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; and
3. Promoting social cohesion and preservation of
customary law and tradition.
49
DTA STRATEGIC OBJECTIVES
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.
50
DTA STRATEGIC OBJECTIVES CONT...
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
51
Evolution of DTA
Program 5:
Chief Directorate of
Traditional Leadership
Strategically locating the two
then
and
Department of
Traditional Affairs
Key Ministries within the
Presidency: Planning Commission
to focus on long range planning for
South Africa & Performance, Monitoring
And Evaluation to ensure seamless
Accountability across departments & spheres
(Horizontally and Vertically)
Reconfiguration of departments in
Line with the Manifesto priorities
2009-2014
and
The Department of Traditional
Affairs as stand alone, emerged
From this strategic repositioning
process
52
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”
EVOLUTION CONT…
DTA Organisational Structure
53
EVOLUTION CONT…
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.
54
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)
55
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
56
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
57
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/Regul Provision of support to
ations allocation of roles and associated institutions
delegations of functions to
traditional leaders and
traditional councils by
organs of state
58
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.
59
DTA PERFORMANCE
Total number of planned Targets = 47
Achieved
Not Achieved
= 12
(26%)
Partially
Achieved
= 18
(38%)
60
Achieved
= 17
(36%)
Partially
Achieved
Not Achieved
DTA PERFORMANCE FOR 2010/11 CONT...
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.
61
DTA PERFORMANCE CONT...
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.
62
DTA PERFORMANCE CONT...
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; and
Electronic information system was updated in respect of
senior traditional leaders and communities during the
period under review.
63
DTA PERFORMANCE CONT...
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;
64
DTA PERFORMANCE CONT...
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
and CTLDC was established
 Five commissioners were appointed
65
CTLDC,
2010/11 FINANCIAL PERFORMANCE
2010/11
Programmes
Prog. 1: Administration
Prog. 1: Research, Policy and Legislation for TA
Prog. 3: Institutional Support and Coordination
* National House of Traditional Leaders
* CRL Rights Commission
* Commission on Disputes and Claims
TOTAL
66
Final
Actual
Appropriation Expenditure
R'000
R'000
12 523
12 523
6 566
6 566
3 841
295
19 046
15 754
24 401
24 401
7 700
2 278
74 077
2009/10
% Final
Actual
Variance Spent Appropriation Expenditure
R'000
R'000
R'000
- 100%
- 100%
7 914
7 914
3 546 8%
3 292 83%
13 755 13 755
- 100%
20 250 20 250
5 422 30%
12 604 12 604
61 817 12 260 83%
54 523
54 523
2010/11 FINANCIAL PERFORMANCE CONT..
2010/11
Description
Compensation of Employees
Goods and Services
Transfer Payments
Payment for Capital Assets
TOTAL
67
2009/10
Final
Actual
% Final
Actual
Appropriation Expenditure Variance Spent Appropriation Expenditure
R'000
R'000 R'000
R'000
R'000
28 693 17 267 11 426 60% 11 811 11 811
20 237 19 403 834 96% 20 724 20 724
24 401 24 401 - 100% 21 970 21 970
746
746 - 100%
18
18
74 077 61 817 12 260 83%
54 523 54 523
FINANCIAL PERFORMANCE NARRATIVE

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.
68
FINANCIAL PERFORMANCE NARRATIVE CONT..

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.
69
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
70
POST AUDIT ACTION PLAN
Appointed 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.
71
CHALLENGES
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
department
Department still at the establishment phase and
therefore not all the systems
established
due to
inadequate human
resource capacity
and financial
constraints
Lengthy and costly NTAB consultation processes
which delayed tabling of the Bill in Parliament
72
RECOMMENDATIONS
For the Portfolio Committee to note:
DTA 2010/2011 performance;
The intervention made to address audit
outcomes; and
Challenges confronting the department.
73
THANK YOU
74