Presentation to the Parliamentary Portfolio Committee on International Relations and

Cooperation

Internal AuditRisk Management

Diplomatic Training, Research & Development State Protocol

30 July 2014

Contents1. Internal Audit- Audit Committee- Challenges- Way Forward

2. Risk Management- Introduction (Mandate, Role of Accounting Officer - AO)- Risk Management (RM) Structure- Initiatives to Implement RM- Conclusion

3. Diplomatic Training, Research & Development (DTRD)- High level Priorities- Languages- International School

4. State Protocol- Mandate- Core Business

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MANDATE• PUBLIC FINANCE MANAGEMENT ACT

Sec 38(1)(a)(ii) Accounting Officer to establish a system of internal audit under control and

Guidance of Audit Committee Complying with and regulations & instructions prescribed in terms of section 76

and 77

• PUBLIC FINANCE MANAGEMENT ACTSec 76(4)(e)

The National Treasury may make the regulations or instructions concerning Internal Audit components and their functioning

• Currently the Internal Unit of DIRCO has 8 staff members responsible for conducting audits at Head Office and 125 Missions and the ARF fund.

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INTERNAL AUDIT: OVERVIEW

• Independent Committee comprising of members outside the Department

• Head of Department, DDG’s and Head of Internal Audit are invited, non-voting members (standing invitees)

• Chairperson of the Committee from outside the Public Service

• Main role is the oversight of all activities of the department especially the system of internal controls

• Reinforce and coordinate the work performed by the external and internal auditors

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AUDIT COMMITTEE

4 New members were appointed in December 2013.•Currently comprise 7 members.Human resources ICT fieldAuditing, Accounting and Management Consulting.Foreign DiplomacyLegal

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AUDIT COMMITTEE

• Delays in filling vacant funded posts

• Inadequate human resource capacity

• Staff turnover due to market related rates offered by other institutions

• Incomplete operation plan due to lack of human resources

• Mission audits not conducted regularly

• HR has started with the process and some of the vacant posts have been filled

• Job evaluation has been completed for the post of the ICT auditor as it is a specialised field.

• Internal Audit structure current being reviewed.

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CHALLENGES AND WAY FORWARD

RISK MANAGEMENT

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1. INTRODUCTION-MANDATE1.1 The Department of International Relations and Cooperation

(DIRCO) is committed to a process of risk management that is aligned to the principles of good corporate governance, as supported by the following prescripts:

• Public Finance Management Act (PFMA), Act 1 of 1999 as amended by Act 29 of 1999;

• Treasury Regulations; • National Treasury’s Public Sector Risk Management

Framework of 1 April 2010; as well as• King III Report on Corporate Governance

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1.INTRODUCTION-ROLE OF AO1.2 Risk Management mirrors the whole department with a view

of enforcing risk based planning. The planning involves proactive identification of risks which could hamper department’s performance and to put in place adequate and effective mitigation strategies. This aims to pave a way to a clean audit.

1.3 The role of Accounting Officer in risk management is therefore, but not limited to-:

• setting an appropriate tone by supporting and being seen to be supporting the Institution’s aspirations for effective management of risks;

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1.INTRODUCTION-ROLE OF AO• Foster a culture of good governance and ethical conduct

in the department; and

• Discourage inefficiencies and counter fraud and corruption

• providing assurance to relevant stakeholders that key risks are properly identified, assessed and mitigated.

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2. RISK MANAGEMENT STRUCTURE• The Risk Management Unit is currently situated in the Chief

Directorate: Internal Audit.

• The staff compliment of the Unit is 1 + 3 (borrowed staff)

• The Head of Unit (Chief Risk Officer) also serves as Head of Forensic Auditing

• As part of following and implementing good corporate governance practices, DIRCO appointed Risk Management Committee, with an independent Chairperson and Deputy Chairperson in order to provide oversight on its risk management processes.

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3. INITIATIVES OF DIRCO IN IMPLEMENTING RISK MANAGEMENT

The Department has six high-level objectives and strives to incorporate and embed risk management in its strategic as well as operational planning. The implementation of risk management is thus supported by the following developed documents:•RISK MANAGEMENT POLICY•RISK MANAGEMENT STRATEGY•RISK ASSESSMENT METHODOLOGY•FRAUD AND CORRUPTION POLICY•FRAUD AND CORRUPTION STRATEGY

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3. INITIATIVES TO IMPLEMENT RM-CONTINUES

APPOINTED RISK MANAGEMENT COMMITTEE :•2 Independent people (Chairperson and Deputy Chairperson)

•14 Department’s Senior Managers (representing various branches)

•The Risk Management Committee Charter details its roles and responsibilities

•The Committee meets quarterly as per National Treasury Guidelines and on an ad-hoc basis as needs arise

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CONCLUSIONDIRCO continues to show improvement in its Risk Management Maturity level in these ways:1.Appointment of Risk Management Committee (external and internal members);

2.Incorporation of risk analysis in annual planning;

3.Standing Agenda Item of Risk Management in Departmental Management Forum; and

4.Formal appointment of Risk Owners (DDGs) - Management accountability

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Diplomatic Training, Research and Development (DTRD)

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HIGH LEVEL PRIORITIES• Elevate the position of the Academy as a premier diplomatic and IR

institution / centre of excellence in SA diplomacy, equal only to the best of its counterparts in the world;

• Adapt to the ever changing world of Diplomacy

• Have a THEMATIC approach to programming around SA foreign policy priorities such as;

• BRICS;• PCRD (Conflict Resolution, Mediation, Constitution Building,

Reconstructions and Development;• Economic Intelligence / Economic Diplomacy• Terrorism and Counter Terrorism Courses• Future of Conflict and Interventions

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HIGH LEVEL PRIORITIES• ECONOMIC DIPLOMACY:

– Fully integrated to the core function of diplomats and diplomatic training

– Advance training by rolling-out and improving the Toolkit into a Practical How To Manual, on the intranet, revised regularly;

• CADET TRAINING: start January 2015: to be named, JOHNNY MAKHATINI DIPLOMATIC CORPS;

• Bring Cadets (previous and the next) to a higher level of foreign language proficiency and include Interpreting and Translation Skills particularly in the year of probation;

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HIGH LEVEL PRIORITIES• Create a platform that contributes to foreign policy debate and

production of knowledge and foreign service intellectuals;• Provide additional Diplomatic Skills, mainly around;

(a)Knowledge Skills and (b) Specialist Training; Writing of;UN Resolutions, Multilateral Statements, Political Reports

– Cyber Security / E-Diplomacy / E-learning– Environmental & Multilateral Diplomacy (Understanding Tracks

Negotiations), Energy, Water Security, etc– Strategic Options and Futures Analysis– Advanced Foreign and Complex Language Skills– Mediation Toolkit– Regional Integration / Global Governance

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LANGUAGES• MISSION SUPPORT INTRODUCED IN 2012;

(Mission now receive language training from the Academy’s budget);

• PRODUCE A SCARCE SKILLS POLICY DRAFT FOR DIRCO

• INTERPRETATION AND TRANSLATIONS SERVICES VERY CHALLENGING: security clearances, lack of interest by the general popultion of South Africans in Foreign and Complex languages (Mandarin etc);

• Allow for a bursary to non-DIRCO officials in foreign languages to build a pool of expertise we could draw from

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INTERNATIONAL SCHOOLCONTRIBUTE TO SA’S DOMESTIC AND HIGH LEVEL FOREIGN

POLICY PRIORITIES.• Budget regularised: R7.6 million / p.a• THEMATIC ISSUES FOR THE NEXT FIVE YEARS:

Build on the PCRD Continuum

• Mediation• Election Monitoring• Development (with a role of SADPA)

Economic Diplomacy for African States Economic Diplomacy for Region Policy Environment for;

– Infrastructure Development in Africa– Business in Africa: SA Corporate Insights

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INTERNATIONAL SCHOOL• Workshops Planned on:

– Mediation / Election Monitoring / Development• Country assistance Programme: Diplomatic Training for

countries emerging from conflict (S. Sudan, Somali, etc) and Africa Diplomats based in Pretoria

• International Partnerships: (CLINGENDAE, DIPLO-FOUNDATION, UNCTAD, etc.) utilised to build specialised knowledge and skills base on issues not readily available in SA, such as;– Water Diplomacy, Economic Diplomacy, Development, Green /

Blue Economy, e-Diplomacy / Public Diplomacy, new media (Twitter, Facebook), Develop partnership for developmental issues.

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STATE PROTOCOL

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THE MANDATE OF THE BRANCH STATE PROTOCOL

The Branch State Protocol is committed to service excellence by applying Protocol expertise through consistent systematic practices in support of the implementation of the strategic objectives of Government and DIRCO.

CORE BUSINESS OF THE BRANCH STATE PROTOCOL

State and Official visits - Coordinate and manage outgoing and incoming international visits for SA President and Deputy President ; former and current Heads of State/Government ; Foreign Ministers and Deputy Ministers (Foreign Affairs portfolio only) and Special Envoys

International Conferences -Coordination and facilitation of international conferences and summits for invited Heads of State and Government, foreign Ministers and foreign Eminent Persons, e.g. Former Heads of State and Government and advisory services to national departments, NGOs and International Organisations accredited to the Republic of South Africa.

Intergovernmental and Provincial Protocol (DIPP)- Coordinate and manage Provincial and Local Government international visits and act as a liaison between DIRCO and other spheres of government on Protocol and related matters

CORE BUSINESS OF THE BRANCH STATE PROTOCOL (cont)

State Protocol Lounges- Facilitate the movement of specified local and foreign dignitaries as per policy guidelines for arrivals and departures through three lounges (ORTIA, KSIA, CTIA)

Protocol Ceremonial and Guesthouses- Coordinate State and Official Events, Management of Diplomatic Communication, National Symbols and three State/Diplomatic Guesthouses including State Banquets; Signing Ceremonies; Credential Ceremonies; farewell functions of foreign High Commissioners/Ambassadors; Multilateral Events (Conferences and Summits);Special Events e.g. Opening of Parliament and State and Official Funerals

CORE BUSINESS OF THE BRANCH STATE PROTOCOL (cont)

Diplomatic Immunities and Privileges - Provide exceptional services in the management of Diplomatic Immunities and Privileges and oversee the process of :

• Diplomatic Accreditation; • Diplomatic Privileges;• Appointment of Foreign and South African Heads of Diplomatic and

Consular Missions;• Diplomatic Security;• Diplomatic Immunity Disputes;• Temporary Residence Permits;• South African Diplomatic Passports and Visas for South African diplomatic

and official passport holders

THANK YOU

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