Corporate & Business Plan

2012/13 Financial Year

Presentation to Portfolio Committee on Communications, March 2012

Introducing the Team

1. Themba Phiri [ Executive Caretaker]2. Sam Vilakazi [ Executive Caretaker]3. Winile Lamani [ Acting Exec: BDS Division]4. Linda Ngcwembe [ Acting CFO ]5. Vusi Zoko [ SM: Legal Services]

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Presentation Overview

State of the Organization since our last appearance to the

Committee

Considerations of the current strategic and business plans

– Previous AG Findings

– Previous comments by PPC

– Comments received during oversight visits

– Minister’s Delivery Agreements

– Alignment with the DoC and other SoE’s plans

Key Projects

Spending plans

What will USAASA do differently [ Short term & Future]

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Governance & Status Quo Since Last Appearance Non Executive Board Members – Released from duty Technical Advisor resigned with effect from: 08 Nov. 2011 Executive Caretakers appointed in November 2011 Forensic Investigations completed in December 2012• Value for money audit is currently being conducted on

Projects that were awarded to various Service Providers• CFO - Disciplinary hearing in progress• Exec: BDS - Disciplinary hearing in progress• Exec: Perf - Disciplinary hearing in progress• SM: SCM - Disciplinary hearing in progress• SM: ICT - Precautionary SuspensionNB. a) Acting appointments on key positions b) There will be huge under spending due to the fact

internal control measures had to be put in place. 4

Considerations of Business Plan

Previous AG Findings•Measurable objectives and indicators

– Received help from DoC and AG to ensure SMART indicators in current business plan

•Strategic planning not held– Strategy session was held which resulted in the current strategic plan

document

•Asset reconciliation not in place– A process of appointing a service provider to fully complete the asset

verification is underway

•Irregular expenditure– Tender Committees ( Specification, Evaluation and Adjudication) have

been appointed to ensure proper SCM processes are followed

•Fruitless & wasteful expenditure [ RE: Capped leave]– Person who authorised no longer with USAASA : Condonement will be

sought5

Previous comments by the Portfolio Committee members

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• Whether USAASA has the necessary skills - Skills Audit is underway

• Why there are more managers than operational personnel The process of USAASA’s repositioning and operational structural

review will address this• Whether USAASA can function in its current state and structure

The last slide deals with repositioning of USAASA• Why is USAASA not working closely with MDDA and deploy computer centres

where there are community radio stations? Repositioning process will clearly indicate the relationship between a

new USAASA and the MDDA• How far is the partnership of USAASA and SAPO regarding delivery of

USAASA projects Partnership has been initiated to first focus on STB subsidies and

further projects will be included in the MoU

Strategic Context

USAASAUSAASA

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Key USAF Projects for 2012/13 …

Minister’s Performance Agreement & Associated delivery agreements

Outcome 4 Outcome 4

Decent employment

through inclusive growth

Output 6 Output 6

Improved support to small business and cooperatives

Job creation initiatives through SMMEs and Entrepreneurship initiatives

Deploy 100 community access centres through an entrepreneurship model

Convert existing ICT centres to e-hubs

Train 200 centre personnel on e-skilling

BudgetUSAASA PlanDoC PlanMinister’s PerformanceOutputs

R12.4M USAF

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Context of Business Plan

Minister’s Performance Agreement & Associated delivery agreements

Outcome 1 Outcome 1

Improved quality of basic education

Output 1Output 1

Improve the quality of teaching & learning

Connect schools to broadband infrastructure

Promote ICTs in teaching & learning through E-skilling

Connect 18 FET Colleges

Connect 200 Schools on internet

BudgetUSAASA PlanDoC Plan

Minister’s PerformanceOutputs

R9 M USAF

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Context of Business Plan…

Minister’s Performance Agreement & Associated delivery agreements

Outcome 6 Outcome 6

An efficient, competitive and

responsive economic

infrastructure network

Output 5Output 5

Information and Communication

Increase Broadband penetration in South Africa

Facilitate DTT infrastructure rollout

2 Underserviced Municipalities connected with Broadband infrastructure through B/B I/G Impl. Comm

Subsidize 469, 387 STB’s

BudgetUSAASA PlanDoC Plan

Minister’s Performance Outputs

R16,885 M USAF

R230 MUSAF

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Context of Business Plan…

Minister’s Performance Agreement & Associated delivery agreements

Outcome 6 Outcome 6

Vibrant,equitable & sustainable rural communities & food security for all

Output 3 Output 3

Rural services & sustainable livelihoods

Finalise the ICT rural development strategy

Monitor and evaluate the implementation of the definitions targets quarterly. Publish progress reports.

BudgetUSAASA PlanDoC PlanMinister’s PerformanceOutputs

R2.85 M USAASA

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Spending Plans on Projects

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Project Q1 Q2 Q3 Q4 Comment

E-connectivity

R3 Million R3 Million R3 Million

USAF Manual R290,000.00 Internal Processes

R2,56 Million

Rapid Deployment

Appoint SP R6,2 Million R6,2 Million Future Planning

STB Subsidies

Pre-applications

Pre-Applications

R110 Million R120 Million

B/Band subsidies

Assessments Appoint SP R16,885 M Project review

USAF: Key Projects and Budget Summary

  2012/13 2013/14 2014/15

Revenue000 000 000

Department of Communication 273 977 289 046 291 988

Total revenue 273 977 289 046 291 988

Expenses

Audit costs 762 717 857

Bank Charges 27 29 31

Project Costs 2 053 2 415 2 555

Projects

Strategy document and USAF Manual 2 850 - -

E-connectivity 9 000 9 310 8 550

Rapid Deployment 12 400 15 000 20 000

STB subsidies 230 000 240 000 240 000

Broadband infrastructure 16 885  21 575  19 995 

Total expenses                 273 977                  289 046                  291 988  13

USAASA: Budget Summary

  2012/13 2013/14 2014/15

Revenue      

Other income - - -

Executive Authority (Type in

Department name e.g. Home Affairs) 59 801 63 090 66 875

Total revenue                  59 801                   63 090                   66 875 

Expenses      

Salary & Wages 30 711 32 554 34 670

Social Contributions (employer

contributions only) 3 412 3 617 3 852

Administrative fees - - -

Advertising 284 350 400

Agency and support / outsourced

services - - -

Assets less than R5 000 100 150 200

Audit costs 760 791 820

Bank Charges 45 50 55

Board Costs 950 1 050 1 100

Bursaries (employees) 150 200 250 14

USAASA Budget…  2012/13 2013/14 2014/15

Expenses contd…

Catering: internal activities 400 420 440

Communication 1 600 1 700 1 800

Computer services - - -

Consultants 1 500 1 575 1 653

Contractors - - -

Entertainment - - -

Inventory 400 500 638

Lease payments 4 902 5 500 6 050

Legal fees 860 500 550

Non life insurance 260 300 350

Printing and Publication 600 650 700

Repairs and maintenance 250 350 370

Research and development 1 400 1 470 1 110

Training and staff development 700 750 800 15

USAASA Budget…

2012/13 2013/14 2014/15

Expenses contd…

Travel and subsistence 4 500 5 550 5 727

Venues and facilities 500 550 600

Other expenditure

Sundries 200 250 300

Organisational Development 450 500 550

Subscriptions 276 290 220

Marketing costs 500 600 670

Employee wellness 360 378 396

Interest 37 45 58

Total expenses                  56 108                   60 640                   64 329 

Capex                    3 693                     2 450                     2 546 

Total Budget                  59 801                   63 090                   66 875 

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High Level MTEF Allocation

R thousand 2012/13 2013/14 2014/15

Universal Service and Access Agency of South Africa 59,801 63,090 66,876

Universal Service Fund (Total Baseline allocation)          273,977           289,046           291,988 

Universal Service Fund (Old Mandate) 43,977 49,046 51,988

Universal Service Fund (STB subsidy) 230,000 240,000 240,000

Total          333,778           352,136           358,864 

Medium Term Expenditure Estimates.

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Social Spin-Offs

•Anticipated 5000 community members trained in ICT•Anticipated 200 jobs (or more) and job opportunities and more created as a result of training•Greater employability of general citizenry

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Repositioning of USAASA

Short Term interventions…

• Pool of mixed skills to exercise necessary fiduciary duties and efficiencies as per Institute of Directors’ guidelines

• Full sector skilled executive management compliment

• Built-in due diligence capacity/mechanisms improved and strengthened across organization [ Tender Committees and necessary delegation ]

• Clear project-aligned shareholder reporting lines

• Frequent Ministerial interaction/ bilaterals

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GOVERNANCE

Short Term interventions

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OPERATIONS

Integration of activities

Medium-Long Term interventions

• Reposition USAASA into a new entity– Process of conducting a review of USAASA to inform its re-positioning

will commence in the beginning of the new financial year.– A process of conducting skills audit has also commenced. – Reports on skills audit and USAASA review will be shared with the

Department and Portfolio Committee once completed.

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THANK YOU !

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