17 October 2012 Joint presentation between National Treasury and DWCPD PRESENTATION TO THE STANDING...

17 October 2012Joint presentation between

National Treasury and DWCPD

PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATIONS

04/21/231

STRUCTURE

2

Areas of concern ( identified by both departments)

Agreed interventions

Progress to date

What remains to be done ( including timelines)

04/21/23

AREAS OF CONCERN

3

Non-prioritisation of the budget towards filling key positions Failure to spend within the allocated budget Unauthorised expenditure (3.7 mil & 22 mil) Failure to comply with the PFMA and other prescripts Unclear Mandate (perceived duplication) Top heavy structure Failure to meet targets (deliver on the mandate) Weak financial management / lack of skills in critical areas. Lack of establishment and expansion plans Unstable DG position Unstable CFO position

04/21/23

AGREED INTERVENTIONS

4

The Department will spend within the allocated budget

Baseline assessment to be conducted so that we prioritise within

the priorities ( fiscal limitations)

Training / Workshops on financial management

Treasury, through the office of the Accountant General; to

provide technical support to the department, including

seconding a CFO.

Minister of Women, Children and People with Disabilities meet

with the Minister of Finance

04/21/23

AGREED INTERVENTIONS

5

A turn-around strategy and plan be developed and implemented

Recruit a suitably qualified CFO

Appoint people in the critical areas of Finance, Risk, Audit and

Asset Management

Develop establishment & expansion plans

Appoint an appropriately qualified DG

Appoint an appropriately qualified CFO

04/21/23

PROGRESS TO DATE

6

Austerity measures have been implemented to ensure

expenditure within the budget

12 million rand has been added to the departments

compensation budget through the AENE

A support team from STATS SA has been enlisted on an adhoc

basis

A CFO has been seconded from Treasury

A risk management support has been provided by Treasury thus

leading to compilation of a risk register

A draft turn-around strategy has been developed

TAU considering developing establishment and expansion plans

04/21/23

PROGRESS TO DATE

704/21/23

Priority Turn-Around Focal Area

Corrective Action Status Budget

1. Financial Management • Up-to-date budget vs expenditure information to the responsibility managers

• Cash flow reports (available budget, monthly expenditure) are been sent out to the responsibility managers on a bi-monthly basis and monthly to NT as per the requirement.

• Financial implications covered with existing budget.

PROGRESS TO DATE

804/21/23

Priority Turn-Around Focal Area

Corrective Action Status Budget

.Financial Management, cont..

• Bank reconciliations done on a daily basis.

• Daily clearance of exceptions on the bank account is performed, reviewed, signed-off and filed for audit purposes.

• Monthly reconciliations on cash & cash equivalents are done, reviewed and submitted to NT.

• Financial implications covered with existing budget.

• Segregation of duties in respect of SCM

• Finalisation of Logis administrator position to be filled at level 5 by November 2012.

• R178 000 (will be covered with additional funds received.)

• Complete and accurate asset register implemented on LOGIS or similar system

• The recruitment of staff member is in process and will be finalised by December 2012. The register is been updated by Facilities Management as part of the control of movement of assets.

• R465 000 (Will be covered with additional funds received.)

PROGRESS TO DATE

904/21/23

Priority Turn-Around Focal Area

Corrective Action Status Budget/ expenditure

.3Overspending • Formal training workshops on financial management

• 16 official received training on SCM in October 2012.

• R200 000

WHAT REMAINS TO BE DONE

10

Finalise the turnaround strategy and draft a plan for implementation.

Review and finalise Financial and Supply Chain Management delegations by November 2012

Establish Financial procedures manual for financial management by December 2012

Review existing and establish new policies for financial management by December 2012

Finalise recruitment of additional HR, Finance and SCM staff by March 2013

Review and update register and incorporate into LOGIS by December 2012

Training staff of LOGIS functions by December 2012

Training staff on suspense accounts management by March 2013

Training senior end users on SCM by March 2013

Implement findings of the Fluxmans Report

Appointing a DG asap

Appointing a CFO asap

Develop establishment and expansion plan by 30/12/12

SCOPA decision on R3.7 and R22 million over-expenditure

04/21/23