USAASA & USAF Annual Performance Report Presentation to the Portfolio Committee on Communications 1

USAASA & USAF Annual Performance Report

Presentation to the Portfolio Committee on Communications

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Outline

• The Team• USAF Performance• USAASA Performance• Projects Rolled Over from Prior Year

– Rapid Deployment of Access Centres & Schools– Handover Project– National Strategy on Universal Service & Access

• The Auditor General– USAF– USAASA

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The TeamTHE BOARD•Mrs. Pumla Radebe (Chairperson)•Ms. Seadimo Chaba•Mrs. Zandile Mdhladhla•Mr. Sam Ledwaba•Mr. Kenosi Moroka•Mr. Raj Lalbahadur•Ms. Victoria MacDonald•Board Secretariat

MANAGEMENT•Mr. Zami Nkosi (CEO)•Mr. Zane Mheyamwa (CFO)•Mr. Winile Lamani (Acting Executive: BDS)•Ms. Yvunne Mashilela (Executive: Corporate Services)•Ms. Makhotso Moiloa (Executive: Performance Management)

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USAASA & USAFPerformance Against Targets

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DTT Access Centres Handover/Connectivity Upgrade

BDM Capacity Building

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USAF Projects

Performance Indicator

Annual Target 2012/13

Achievement on Target

Variation Comment

Implementation of the Universal Service & Access Strategy

Phase 1 of the Universal Service & Access Strategy developed and approved

Achieved None Board processed phase 1 plus the access gap maps of phase 2

Stakeholder Facilitation & Management in support of mandate

Improved stakeholder perception. Facilitate USAF project engagements

Achieved None

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USAASA

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Variation Comment

Fund Operating Guidelines

Fund Manual & Standard Operating Procedures (SoP)

Partially Achieved.

Incomplete achievement on target; Standard Operating Procedures required; Gazetting

Manual complete & approved by Board. Consultations to commence in new financial year. The document to be finalised by the end of September 2013

Human Resource Support

Comprehensive organizational development drive

Partially Achieved. Incomplete achievement on target; only the skills audit was performed

OD deferred to align to National Strategy Skills audit complete. Complete review of policies. Executive recruitment complete.

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Variation Comment

Information Technology

Development & implementation of progressive IT Strategy

Achieved None IT strategy developed and tabled to Exco. IT governance framework approved at Board meeting of 28 March 2013. Firewall fully operational. DR backup installed. Improved desktop support via additional lines, updates & regional servicing.

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Variation Comment

Legal Advisory Legal, contract & regulatory advice.

Achieved None Drafted and reviewed SLAs, MOUs, Lease agreements, Letters of demand, addendas and employment contracts; in addition to conclusion of disciplinary processes

Implementation of Corporate Governance Model

Implement integrated corporate governance policies, processes and workflows

Achieved None Governance framework implemented & regularly reviewed to ensure efficiency of Board operations. Company secretary appointed.

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Variation Comment

Internal Audit Review Approved 3 year rolling plan. Develop annual operational plan.

Achieved None All planned audits completed

2013/14 audit plans approved by Audit Committee

Financial Management Meet MTEF submission deadlines USAASA and USAF

Achieved None

Reporting on Estimates of National Expenditure (ENE)

Achieved None

Compliance with all relevant Acts of legislation, PFMA, Treasury regulation, ECA, GRAP, GAAP, PPPFA

Achieved None

Offer financial services to all business units within the Agency

Achieved None

Performance Synopsis

50% achievement on targets [incl. DTT]

8.9% spend on budget [incl. DTT]

66.17% spend on budget [excl. DTT]

85% achievement on targets98.11% spend on budget [excl. depreciation]

Mitigation of Underperformance

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Programme Name: USAASA

Strategic Objectives Performance Indicator

Actual Achievement 2011/2012

Planned Target2012 / 2013


Variation from planned Actual Target 2012/2013

Planned Mitigation of Non-Performance

Ensure efficient and effective management of the Universal Service and Access Fund

Fund Operating Guidelines

Not Achieved. Fund Manual & Standard Operating Procedures (SoP).

Partially Achieved. Incomplete Achievement.

Manual complete & approved by Board. Consultations to commence in new financial year. The document is set to be finalised by the end of September 2013.

Enhance the strategic and operational capacity of USAASA

Human Resource Support

Not Achieved. Comprehensive organizational development drive.

Partially Achieved. Incomplete Achievement.

The OD process was delayed in order to ensure it aligns with the functional requirements of the National Strategy on Universal Service and Access which is the new corporate strategy of the organization.

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Programme Name: USAF







Facilitate interventions in ensuring affordable, equitable access and useage of ICTs

Number of needy households with access to digital television

Not Achieved. 469, 387 needy TV owning households subsidized with STBs

Not Achieved. No Achievement. Performance is DoC dependent. Ensure state of readiness.


BDM Capacity Building

Not Achieved. Capacitation of engineering skill; procurement personnel; financial & transactional systems; data collation & manipulation printing of applications etc.

Partial Achievement. Incomplete Achievement.

Develop project financial requirement. Secure financial requirement other than rollover. Procure of necessary skill. Procure systems integration/alignment.

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Programme Name: USAF








Broadband Infrastructure

Not Achieved. Subsidization of 1 integrated rural broadband site

Not Achieved. No Achievement. 2 Broadband projects funded in 2013/2014 financial year. Plans and essential project structures to be established. Engagements with National Treasury on financing model. Assess and ensure alignment to National Strategy on Universal Service and Access.


New access centres deployed

Not Achieved 120 new access centres deployed

Partially Achieved 104 community and school facilities deployed

Roll project into new fiscal and complete all 120 planned deployments

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Projects Rolled Over from Previous Year

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1. Rapid Deployment of Cyberlabs

Phase 1

E-Institution

Community/Thusong

KZN 21

MP 1 21

EC 1 6

NW 1

TOTAL 51

Phase 2

E-Institution

Community/Thusong

EC 43 3

FS 15 3

LP 2 5

NC 1 1

NW 5 2

WC 2 2

GP 5

TOTAL 8917

Equipment per Centre: Community Centres

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Equipment per Centre: E-Institutions

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2. Handover / Connectivity Upgrade

80 Centres Revived Benefits

• Access to ICT services• Majority employment

opportunities to women• Majority employment full-

time in nature

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Overall Equipment Replaced Nationally

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3. National Strategy on US & A

Situational Analysis

USAASA StrategyUSAF Strategy

International Benchmarking

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ICT Penetration

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Broadcasting Penetration

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Postal Outlay against Population

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• 250 towns requiring points of presence150 municipalities requiring network infrastructure

Year 1 Year 2 Year 3 Year 4 Year 5

Community Broadband 30 40 50 60 70

Universal Mobile 5 5 5 5 5

ICT Training 2 3 4 5 5

ICT Content and Apps 2 3 4 5 5

Community Broadcasting 1 2 2 2 2

Affordable ICTs 1 2 3

Persons with Disabilities 482

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• Sentech: Broadcasting Masterplanning• Broadband Infraco: Broadband Masterplanning

Fund Manual

Goals• To provide a procedures and

guidelines for the USF operations in disbursing grants and subsidies;

• To enable the Agency to comply with good governance, accountability and transparency in administrating the grants or subsidies in the Universal Service and Access Fund;

• To provide efficient and effective means of disbursing grants and subsidies in the Universal Service and Access Fund;

• To be an effective mechanism for auditing the Fund when required.

Characteristics• Be aligned with international

best practice• Be aligned with Schedule 3A of

PFMA• Be aligned with USAASA

Strategy• To be aligned with USAASA

medium and long term project planning

• To have effective project management skills for its operation

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Fund Manual: Effectiveness

• For the manual to be effective, therefore, there needs to be: – A proper strategy, i.e., a roadmap – A proper planning structure that is guided by the strategy, that is one

step ahead (e.g., planning one year in advance as a rule)– The human and other resources necessary

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THE AUDITOR GENERALUSAF

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“except for the possible effects of the matters described in the basis for qualification, the financial statements present fairly in

all material respects…”

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Material Findings

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Material Findings: Qualified OpinionItem Issue Resolution

Project Expenses “Unable to obtain sufficient appropriate audit evidence” for transactions valued at R45, 698m

• Relates to prior years• Process of

condonement underway

Trade & Other Payables “Unable to obtain sufficient appropriate audit evidence” for transactions valued at R11, 593m

• AG visited projects to verify in May 2013

• “Sufficient appropriate evidence” was re-submitted & tested by Internal Audit on 31 July, 2013

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THE AUDITOR GENERALUSAASA

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“the financial statements present fairly, in all material respects, the financial position of the Universal Service & Access

Agency of South Africa”

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Material Findings

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Conclusion

• Remarkable progress was made in a period of six months delivering tangibly on the ground to various Departments of Education

• AG issues/inputs have been taken on-board constructively and many refined as per their requests

• Board turn-around strategy in the form of the National Strategy on Universal Service & Access is complete and in consultative phase

• Work output on National Strategy development now forms a key component of the ICT Policy Review Process

• Majority key vacancies have been filled

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Documents

USAASA & USAF Annual Performance Report Presentation to the Portfolio Committee on Communications 1