Overview of the Audit Report

PRESENTATION TO THE PORTFOLIO COMMITTEE ON THE ANNUAL REPORT OF THE

DEPARTMENT OF WOMEN, CHILDREN & PEOPLE WITH DISABILITIES – 2010/2011

19 OCTOBER 2011

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Overview of the Audit Report

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The Department received in its first audit an Unqualified opinion from the Auditor-General of SA.

There was however certain emphasis of matter and additional matters that the AGSA highlighted.

The department already engaged in action plans with the Senior Managers to ensure that the issues raised will not be repeated in the next financial year’s audit.

Commitment letter sent to the AGSA on 5 October 2011 indicating measures put in place to address the issues on the emphasis of matter and other matters categories.

Emphasis of matter

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Unauthorized and Irregular Expenditure:The department over spent its budget and disclosed this

amount of R3,729 million as un-authorized expenditure. Administration over spent by R8,830 million due to

travel and accommodation expenditure, seconded staff, venues and facilities.

WEGE branch had an over expenditure of R387,000 due to insufficient budget for travel and accommodation to provide for the delegation attending the UN Commission on the Status of Women conference and seconded staff.

The Children’s rights and responsibilities had an over spending of R167,000 due to the travel expenditure incurred by seconded officials who were not provided for.

Emphasis of matter

Rights of People with Disabilities had a saving of R5,656, which resulted in a net over expenditure of R3,729 million.

The amount of R6,629 million was disclosed as irregular expenditure as savings realized under Capital Expenditure were used to defray Current expenditure without first obtaining Treasury approval.

Approval from National Treasury was subsequently obtained.

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Additional mattersPredetermined Objectives

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Usefulness of information:The department had no Strategic Plan and

the information on the predetermined objectives was deficient in that there was no clear and logical links between objectives, indicators and targets.

indicators were not well defined and verifiable, no time bound and measurability.

The department has corrected these in drafting the 2011/12 strategic plan to ensure that the concerns of the AG are addressed.

Compliance with Laws and regulations

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The Strategic Plan as mentioned in the previous slide was not properly done as there was no capacity in the department to form a Management Team to look at the Strategic Plan for the department.

This led to a document that was not compliant to the relevant policies and prescripts.

Budgets & Expenditure Management

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As the department was still within the Presidency during the time of audit, Budget related matters and Expenditure Management were dealt with within the Presidency.

The lack of capacity for the department led to certain problems areas that were identified by the AGSA, such as:Overspending and misallocations of expenditurePayments not made within 30 daysNon-submission of reports to National TreasuryPrevention of Unauthorized & Irregular Expenditure

Since the department started operating independently from the Presidency as from May 2011, capacity has increased on finance support staff, and policies are in place to ensure compliance to regulations.

Audit Committee & Internal Audit

8

During the audit period the department did not have an Audit Committee this is non-compliance to section 77 of the PFMA and Treasury Regulations ( TR) 3.1.

Subsequently the Audit Committee was appointed on 01 October 2011.

The internal audit function was not in place during the audit period as per TR3.2.2.

Subsequently the interviews for the Director: Internal Audit were conducted on 06 October 2011, and the appointment will be finalised soon.

Procurement & Contract Management

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During the audit period the procurement function was not in place in the department which led to non-compliance of bidders regarding the submission of documents together with bid documents.

Support staff have been appointed since June 2011 in Supply Chain Management to solve these matters as well as the Director Supply Chain Management.

SCM policy documents have been finalized and are being implemented.

Human Resource & Compensation Management

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The Human Resource Plan was not submitted during the audit period as per Public Service Regulations (PSR)1/IIIB.2(d) which led to non-compliance.

The Human Resource Plan has been subsequently submitted to DPSA as required by the Public Service Regulations.

During the audit period, the non-submission of Performance Agreements was as a result of internal transitional arrangements.

Performance Agreements for SMS members for 2011/12 have been submitted.

Pay points have been created as per Treasury Regulations 8.3.4.

Internal Control

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Leadership:- The DWCPD did not have sufficient monitoring controls to ensure

proper implementation of the overall process of planning, budgeting, implementation and reporting on performance against predetermined objectives, as well as to ensure compliance with all applicable laws and regulations.

- The DWCPD also did not have sufficient monitoring controls to ensure that funds were utilised in accordance with the approved budget and for the purposes for which they were intended.

This matter has been addressed by the appointment of staff on management level to ensure compliance with applicable laws and to ensure monitoring controls are in place for sound financial management.

Governance:

- Risk Assessment was not done – The Risk Assessment will be done as soon as the Internal Audit component is up and running in consultation with all the relevant business units.

EXPENDITURE ANALYSIS FOR FINANCIAL YEAR

2010/2011

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Index of content

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Overall expenditure analysis for the financial year 2010/2011

Expenditure per program per economical classification

Detail breakdown on travelling expenditure:International travel

Detail breakdown on advertisement cost in terms of recruitment

Detail breakdown on post establishment

Overall expenditure analysis: Fin Year 2010/2011

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Economic Classification

Final appropriation R’000

Expenditure

R’000

Variance

R’000

Comments

Compensation 18 146 22 744 (4 598) Ministry Staff, Full time appointments, i.e. Director-General & support staff, overtime worked by the Presidency staff assisting DWCPD.

Goods and services

29 512 34 966 (5 454) Subsistence & Travel, Accommodation, Venues /Facilities (Women's Conference)

Transfers and subsidies

51 949 51 968 (19) Leave pay for official whose contract expired and the pay of car license.

Capital 6 583 241 6 342 Dept relocated in 2011/12, hence the saving.

Total 106 190 109 919 (3 729)


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Programme Final appropriation R’000

Expenditure

R’000

Variance

R’000

Comments

Administration

28 627 37 457 (8 830) Travel, accommodation incl. seconded officials, venues and facilities

WEGE 60 429 60 816 (387) Women’s Day celebrations , UN CSW conference insufficient budget

CRR 8 568 8 735 (167) Seconded officials travel/subsistence

RPD 8 566 2 910 5 656 Saving due to unfilled posts

Total 106 190 109 919 (3 729)

Administration expenditure analysis: Fin Year 2010/2011

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Goods & Services


Expenditure

R’000

Variance

R’000

Comments

Compensation

7,979 16,767 (8,788) Ministry Staff, Full time employment of DG & support staff, overtime work by support staff in the Presidency.

Goods and services

15,364 20,468 (5,104) Travel and subsistence, air and road, seconded officials

Transfers 0 21 (21) Leave pay for contract employee and license fees

Capital 5,284 202 5 082 Dept relocated in 11/12 .

Total 28,627 37,457 (8,830)

Goods & Services expenditure analysis: Fin Year 2010/2011

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Programme 1: Administration – R5 104 over spending.

The main cost items in terms of the over spending are travel & subsistence, accommodation and air and road transport for seconded officials, who had not been provided for in the budget.

Venues and Facilities ( National Women’s Month)

Some of the expenditure for local and foreign travel will be recovered from the Presidency in 2011/12.

WEGE expenditure analysis: Fin Year 2010/2011

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Goods & Services


Expenditure

R’000

Variance

R’000

Comments

Compensation

3,338 (425) 3,763 saving

Goods and services

4, 709 9 294 (4, 585) *2010 Women’s Day celebrations and 16 Days of Activism Campaign, *Domestic & foreign trips, *Promotional materials

Transfers 51, 949 51,947 2 Not all the transfer budget was transferred.

Capital 433 0 433 Relocation- 11/12.

Total 60,429 60,816 (387)

WEGE expenditure analysis: Fin Year 2010/2011

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Programme 2: WEGE – R4 585million over spending under goods and services.The main cost under this programme that led to

the over spending was the 2010 National Women’s Day and 16 Days of Activism Campaign

Road, air travel and accommodation both locally and internationally.

Promotional materials including transfer of funds to GCIS for the Women’s Month Campaign

Women’s Day celebrations held in the Eastern Cape.

CRR expenditure analysis: Fin Year 2010/2011

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Goods & Services


Expenditure

R’000

Variance

R’000

Comments

Compensation

3, 415 5, 229 (1,814) Insufficient allocation

Goods and services

4,720 3, 506 1, 214

Transfers 0 0 0

Capital 433 0 433 Relocation to new building in 11/12

Total 8,568 8,735 (167)

RPD analysis: Fin Year 2010/2011

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Capital Expenditure


Expenditure

R’000

Variance

R’000

Comments

Compensation

3, 414 1, 173 2,241 Saving due to unfilled funded posts

Goods and services

4, 719 1,698 3,021 Concomitant costs not incurred due to vacant posts

Transfer 0 0 0

Capital 433 39 394 Low spend due to postponed relocation

Total 8,566 2, 910 5, 656

Main costs under Travel and subsistence and accommodation

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Local Travel is R11, 812 and Foreign Travel is R4,218 and the main costs are as follows:Some of the expenditure under local and foreign

travel will be recovered from the Presidency before the end of 2011/12 financial year.

DWCPD travel involved rented vehicles by staff on official trips, travel expenditure for the planning meetings, attendance of UN and other international bodies meetings, point to point transport for officials with disabilities.

Accommodation for official trips

Main costs under advertising

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An amount of R7,004 million was spent on the advertisement of recruitment and marketing activities as follows: payments amounting to R554 224 for the first initial

advertisement of vacancies in DWCPD. The structure was then amended by cabinet.

The new advertisement amounting to R144 386 was placed in the newspaper for all the senior management posts (23 Posts).

An additional advertisement was placed amounting to R48 236 to extend the application submission date from 07 to 21 January 2011.

Development of a comprehensive and integrated communication strategy for the department R403,000.

Promotional material amounting to R809,789 for the Women’s day celebration in Eastern Cape.

Funds transferred to GCIS for the Women’s day campaign R1,617,646

Main costs under advertising cont. An amount of R1 610 820 was spent

on Child Protection campaign.An amount of R391,200 was spent on

other promotional materials for commemoration of the Day of the African Child.

Promotional material for the event of 16 July 2010 and other promotional material amounting to R250,000.

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Main costs under Venues and facilities

The total amount on Venues and Facilities is R4, 487 million and one of the main activities paid for by the department was the 2010 Women’s conference that was postponed to 2011/12

DWCPD paying tribute to women with disabilities who contributed in various sectors of society.

National Machinery meetings for the three sectors

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PROGRAMME PERFORMANCE

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PROGRAMME 2: WOMEN`S EMPOWERMENT AND GENDER EQUALITY (WEGE)Purpose: To provide strategic leadership, guidance and

programmatic measures on the promotion of women`s

rights

Objective 1: To monitor and evaluate delivery of government on national,

regional and international mandates for women`s

empowerment and gender equality.

Objective 2: To plan, coordinate and advocate for programmes on women`s

empowerment and gender equality.

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Strategic Objective

Measure/Indicator

Actual Performance against Target

Reason for Variance

Target Actual

1. Monitor and evaluate delivery of government on national, regional and international mandates for women`s empowerment and gender equality

• Compliance with international, regional and national commitments enhanced

• Report on progress made on the Convention on the Elimination of all Discrimination Against Women (CEDAW)

•Coordinate South Africa's presentation to the CEDAW Committee

• Responses to CEDAW Committee questions coordinated and compiled•Correspondence with Departments completed •Task team meeting towards final preparations held on 14 January 2011•Responses compiled and consolidated•Report presented to the CEDAW Committee in January 2011

Target achieved

•Preparation and coordination of participation in the United Nations Commission on the Status of Women (UNCSW)

•Coordinate South Africa`s participation at the 55th Session of the United Nations Commission on the Status of Women

• Coordination for UNCSW participation•Held meetings on 14 January, 4 and 14 February 2011•Task Team established and three (3) meetings held

Target achieved 04/20/2329

Strategic Objective

Measure/Indicator

Reason for Variance

Target Actual

1. Monitor and evaluate delivery of government on national, regional and international mandates for women`s empowerment and gender equality

Compliance with international, regional and national commitments enhanced

• SADC Protocol Ratified• SADC Protocol ratification process initiated• Ensured that South Africa participated, ratified, domesticated and popularised, launched, commemorated and commissioned study on SADC, AU, UN and CEDAW activities

• Letter to speaker drafted and submitted in March 2011• Communication with National Parliament undertaken

SADC Protocol on Gender and Development Ratified on 24 August 2011

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Strategic Objective

Measure/Indicator

Reason for Variance

Target Actual

2. To plan, coordinate and advocate for programmes on women`s empowerment and gender equality

• Draft concept document on the proposed Advisory Council on Violence Against Women and Girls

• Establish Women`s Empowerment fund

• Coordinating the Sanitary Dignity Campaign mainstreaming, violence against women and economic empowerment for women

• Draft document consulted with stakeholders• one project per province piloted• 9000 women and girls receiving sanitary dignity packs• Collaborate with UN partners• Consult widely through hosting a National Women`s Conference• Draft National Strategy and implementation plan with an M&E framework reviewed• Draft implementation plan with budget• Coordinate review of 365 Days Plan of Action document• Concept document developed and consulted upon

•Draft National Strategy and implementation Plan • Draft NSIP developed and costed• Consultation meeting held on 24 March 2011 and document on areas for review done in collaboration with NPA, concept consulted upon• Concept developed• Concept document, MoU with DoH signed• ToRs developed and a call for proposals to be issued in March• Concept document developed and consulted on programme developed

Target achieved

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Strategic Objective

Measure/Indicator

Reason for Variance

Target Actual

2. To plan, coordinate and advocate for programmes on women`s empowerment and gender equality

• Women`s economic empowerment facilitated and empowered through anti-poverty programmes and programmes addressing woman`s access to SMME and into formal sector economy

•Concept document developed and one consultation meeting held• WICBT project proposal finalised and research to be commissioned• Annual work plan developed• Develop a concept document with programme• Coordinate participation of delegates in conference

•Consultation with all provinces, date being negotiation with provincial coordinators

Target achieved

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WEGE ACHIEVEMENTS Developed and consulted on a draft National Strategy and

Implementation Plan for Women`s Empowerment and Gender Equality Developed the draft concept document on the proposed National

Council for Gender Based Violence including a reviewed 365 days National action Plan for ending violence against women and girls

Compiled a draft strategy on rural women`s development and initiated the process of engendering the New Growth Path and the job`s fund

Coordinated National task team on women in informal cross border trade. A proposed plan of action has been drafted

Developed a draft concept document on Sanitary Dignity Campaign Developed a draft concept document on the decent work for domestic

workers Developed a draft concept document for the National Techno girl

Launch Developed a draft concept document on the SADC Ministerial meeting

on climate change.

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PROGRAMME 3: CHILDREN`S RIGHTS AND RESPONSIBILITIES (CR)Purpose: To promote, protect and advance the rights

and dignity of all children to enable them to develop to

their full potential in aninclusive and equitable society

Objective 1: Promote human dignity and advance child survival, protection

and development

Objective 2: To coordinate, monitor, evaluate and advocate on children

rights delivery

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Strategic Objective

Measure/Indicator


Reason for VarianceTarget Actual

1. Promote human dignity and advance child survival, protection and development

• Child Friendly Communities in 36 Municipalities

• Development and roll out of the Child Friendly Cities Model

• Sessions conducted with Tshwane Metro, UNICEF for the piloting of the model• Agreement reached on the piloting of the Child Friendly Cities Model• Draft Child Friendly Cities model developed• Submitted Concept Document of the Model for approval

The pilot and roll out was delayed due to prolonged negotiations with UNICEF and City of Tshwane

• Comprehensive Child Protection Strategy available

• Comprehensive Plan of Action for Children`s Rights and responsibilities for 2010 FIFA Soccer world Cup and beyond implemented

• Rapid surveys on Children`s Rights and Responsibilities gaps in sister Departments and development of a tool to audit the needs such as children`s rights focal points

• Developed Draft plan of Action Paper in consultation with UNICEF• Convened consultation sessions with Departments and Provinces• Implement the Plan of Action for 2010 FIFA World Cup and beyond

• Facilitated the implementation in various Provinces• Equity Measures developed in key Departments• Preparation for Convening the National Advisory session for identification of gaps

Target achieved

The Advisory council session was postponed due to other priorities such as the International Conference on Orphans and Vulnerable Children

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Strategic Objective

Measure/Indicator



2. To coordinate, monitor, evaluate and advocate on children`s rights delivery

• National, regional and international reports compiled and submitted as per schedule

• The final refinement of the AU and the UN reports

• Engaged in the final refinement of the UN report• Reports submitted to the DG clusters for further inputs as provided by the various stakeholders

Verification and validation of data delayed the finalisation of the reports

•Children`s Rights focal points established

• Increased child participation

• Commemorated the Day of the African Child and celebrated the International Children`s Day• Celebrated the National Children Day in partnership the North West Province in Rustenburg where the Sanitary Dignity Campaign was launched by the Minister

Only children from seven Provinces participated in the National Children`s Day in the North West

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Strategic Objective

Measure/Indicator



2. To coordinate, monitor, evaluate and advocate on children`s rights delivery

• Advocacy for children`s rights focal points

• Identification of key departments without Children's Rights focal points • Consultations held with the identified department to confirm the need

Limited capacity led to the delays in the driving of consultation processes

• Sanitary Dignity for indigent women and girls promoted

• Developed concept document leading to the launch of the Sanitary Dignity Campaign• Collaborated with key strategic partners• Identified further relevant and prospective stakeholders in the distribution of the sanitary dignity packs to girl children

Limited capacity and financial resources for the newly established department contributed to the rolling out of the campaign

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CR ACHIEVEMENTS The Plan of Action for 2010 FIFA World Cup was

implemented The Draft Plan of Action for the Child Friendly

Cities/Communities Model, Concept Paper was developed in consultation with UNICEF

Engaged different stakeholders in the final refinement of the third United Nations (UN) report

The UN report was presented to the DG clusters for further inputs and refinement

Commemorated the day of the African Child on 1 June 2010 and celebrated the International Children`s Day

Celebrated the National Children`s Day on November 2010 in partnership with NW Province

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PROGRAMME 4: RIGHTS OF PEOPLE WITH DISABILITIESPurpose: To ensure equalisation of opportunities for all people with

DisabilitiesObjective 1: To protect and promote human dignity and

equality of persons with disabilities

Objective 2: To create an enabling environment for empowerment,

advancement and socio-economic development of personswith disabilities

Objective 3: To prevent and eliminate all forms of unfair discrimination

against persons with disabilities

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Strategic Objective

Measure/Indicator

Actual Performance against Target Reason for Variance

Target Actual

1. To protect and promote human dignity and equality of persons with disabilities

• Draft National Disability Policy developed and implemented

• National Disability Policy to be popularised and implemented in 9 Provinces

• Disabled People`s Organisations (DPOs) and government departments oriented on the policy

• Stakeholders oriented

• Consulted the Draft National Disability Policy and oriented stakeholders

• Developed Programme of action and oriented stakeholders

Delayed input from disability sector impacted on implementation of the Policy in the Provinces

• The UNCRPD and implemented in 9 provinces

• Conducted consultative sessions on the draft first country report on the Convention on the Rights of Persons with Disabilities

• Refined the first Country Report on the Convention on the Rights of Persons with disabilities and presented to NEDLAC constituencies

Delayed input from disability sector impacted on submission to Cabinet and deposit to UN Headquarters

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Strategic Objective

Measure/Indicator



• Responsive intervention to institutions for people with disabilities provided

• Poor households targeted for social assistance

• Facilitated support programme to residential facility on human rights related issues• Collaborated with Presidency and Social Development on the implementation of the Anti-Poverty campaign for people with disabilities in Provinces

Target achieved

2. To create enabling environment for empowerment, advancement and socio-economic development of persons with disabilities

• An enabling environment for empowerment and advancement of people with disabilities created

• Increased employment equity target

• Research conducted on reasons for failure of Public Service meeting minimum 2% employment equity target

Inadequate capacity and Financial resources in the unit to drive implementation

• Oversee the implementation, monitoring and evaluation of the antipoverty strategy

• Skills development and poverty indicators published

•Numbers of anti-poverty projects accessed by persons with disabilities

Target achieved

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Strategic Objective

Measure/Indicator


Reason for Variance

Target Actual

• Anti-poverty disability specific indicators in placeNumbers of anti-poverty projects accessed by persons with disabilities

• Implement, monitor and evaluate the anti-poverty strategy using disability specific indicators

• Skills development and poverty indicators developed

Target achieved

3. To prevent and eliminate all forms of unfair discrimination against persons with disabilities

• An enabling environment for empowerment and advancement of people with disabilities created

• MOU and partnership with DTI on Economic empowerment

• Developed a draft concept paper on economic empowerment in consultation with DTI

Inadequate capacity and Financial resources in the unit to drive implementation04/20/2342

Strategic Objective

Measure/Indicator




• Conference resolutions implemented

• Participated in the Cerebral Palsy Conference

Target achieved

• Collated reports and inputs

• Facilitated the Inter-Provincial Forum meeting to evaluate provincial reports and provide inputs into the Country Report and Draft Policy

Target achieved

• Three development indicators

• Developed and published disability specific indicators on health, education, social and security

Target achieved 04/20/2343

Strategic Objective

Measure/Indicator

Actual Performance against Target Reason for Variance

Target Actual


• Implementing the establishment framework for promoting, protecting and monitoring the implementation of the UN Convention on the Rights of Persons with Disabilities

• Launched disability awareness month

• Participated in the International Day of Persons with Disabilities in collaboration with Office of Premier in Gauteng

Target achieved

• Implementing the establishment framework for promoting, protecting and monitoring the implementation of the UN Convention on the Right of Persons with disabilities

• Presented First Draft of UN Convention Country Report to five clusters

Target achieved

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Strategic Objective

Measure/Indicator


Reason for Variance

Target Actual


• Advocacy campaign conducted in 9 provinces

• Worked with African Sinakho “I can” project towards finalization of a MOU for awareness raising through community theatre

Inadequate financial resources to drive the campaign

• Department of Rural Development and Land Reform supported

• Supported the Department of Rural Development and Land Reform in establishment of a Disability Forum

Target achieved

• Made inputs into Framework for Rehabilitation, Re-integration and Return to work

• Worked in collaboration with Department of Labour to develop an Integrated Comprehensive Policy Framework for Rehabilitation, Re-integration and Return to Work

Target achieved

04/20/2345

Strategic Objective

Measure/Indicator


Reason for Variance

Target Actual


• Parents, children and professionals

• Participated and delivered a keynote address in the Inclusion Africa international Conference held in Gauteng province

Target achieved

• Timeous response to public queries

• Responded to queries from Presidential Hotline and from the public relating to social grants, employment, education and health

Target achieved

04/20/2346

Strategic Objective

Measure/Indicator




• African Protocol on Disability Drafted

• African Protocol on Disability completed by December 2011

• Participated in discussions with the Africa Decade Programme and made inputs into the Draft African Protocol on Disability

Target achieved

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PROGRAMME 4 ACHEIVEMENTS Consulted the Draft National Disability Policy and orientated

stakeholders Provided assistance to rape victims at Philadelphia Secondary School Provided support to the raped child with intellectual disability in

Phelang Special School Developed special schools audit questionnaire Developed draft concept paper empowerment of people with

disabilities and consulted with financial institutions Developed annual indicators for skills development and poverty

alleviation Presented statements at the 3rd conference of States Parties to the

UN Convention on the Rights of Persons with Disabilities held in New York-UN Headquarters in 2010

Supported the Department of Rural Development and Land Reform in establishment of a Disability Forum

Participated in Cerebral Palsy Conference

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END THANK YOU

04/20/2349

Documents

Overview of the Audit Report