Briefing to the Portfolio Committee on Home Affairs 19 February 2008

Contents Annual Report 2006 / 2007 Financial Management Preparations for the 2009 Elections

Annual Report 2006 / 07: Strategic Objectives Entrenching the Commission as a focal point for the delivery of free and fair elections in the most efficient and cost-effective manner Maintaining an optimal network of voting districts and voting stations for the by-elections to ensure reasonable access by voters and to maintain an accurate and up-to-date national common voters’ roll Informing voters on electoral processes with a view to ensuring maximum participation (turnout) and the lowest possible number of spoilt ballot papers Ensuring the effective participation of political parties and independent ward candidates in electoral processes

Strategic Objectives (cont.) Maintaining and consolidating organisational systems and infrastructure in respect of voting facilities and agencies for by-elections Ensuring that the necessary resources (financial and human resources, information technology, corporate services, legal support, security, and internal and external communication) are maintained in order to ensure the effective functioning of the Commission Offering the highest possible standard of training to officials to facilitate a fluent and effective voting process and the accurate recording of the results of elections

Strategic Objective 1: Entrenching the Commission as a focal point for the delivery of free and fair elections in the most efficient and cost-effective manner

Strategic Objective 1: Review of the organisation commenced and proposals for a new organisational structure were considered International Conference on Sustaining Africa’s Democratic Momentum hosted with the AU and International IDEA in March 2007 Assistance given with elections to various institutions, including 27 000 schools for the election of parent component of SGBs Technical assistance provided with elections in the DRC and the Comoros Discussions commenced with DFA to draft an MOU to support international work

Strategic Objective 2: Maintaining an optimal network of voting districts and voting stations for the by-elections to ensure reasonable access by voters and to maintain an accurate and up-to-date national common voters’ roll

Strategic Objective 2 Voters’ roll decreased by 419 913 during the period under review due to deaths, etc. Continuous registration led to 19 199 new registrations More structured relationships established with municipal development planning units to manage national network of voting stations better More than 2.5 million addresses were captured in the year under review

Strategic Objective 3: Informing voters on electoral processes with a view to ensuring maximum participation (turnout) and the lowest possible number of spoilt ballot papers

Strategic Objective 3: 61 by-elections were held to fill vacancies on municipal councils 210 candidates participated in by-elections Voter turn-out for by-elections averaged 31.06% Spoilt ballot papers for the by-elections were 1.55% National EDDE workshop held Collaboration with Chapter 9 and other institutions with work on the youth and women sectors 550 schools involved in Schools Project

Strategic Objective 4: Ensuring the effective participation of political parties and independent ward candidates in electoral processes

Strategic Objective 4: 168 parties were registered by the end of the last financial year (93 at national and 75 at local level) – 9 more than in previous year PLC meetings were held at local level in preparation for by-elections R79 million was allocated to represented political parties

Strategic Objective 5: Maintaining and consolidating organisational systems and infrastructure in respect of voting facilities and agencies for by-elections

Strategic Objective 5: Surveys conducted to improve the quality of the voting stations database Standardised lease agreements were entered into with all landlords to secure the ongoing use of voting stations Electoral materials stock was replenished on time and within budget Logistics information system was used to plan the procurement of electoral materials for by-elections Models for the local delivery structure of the Commission were discussed

Strategic Objective 6: Ensuring that the necessary resources (financial and human resources, information technology, corporate services, legal support, security, and internal and external communication) are maintained in order to ensure the effective functioning of the Commission

Strategic Objective 6: Statutory monthly reports were submitted to the National Treasury on the 15th of each month Recommendations by internal and external auditors were implemented Unqualified audit report received from the Auditor-General Financial control systems functioned effectively Staff turnover remained minimal Vacancies in the process of being filled on completion of Organisation Review process Staff wellness programme received further attention Stable and consistent IT infrastructure maintained at national office, nine provincial offices and more than 300 municipal offices

Strategic Objective 7: Offering the highest possible standard of training to officials to facilitate a fluent and effective voting process and the accurate recording of the results of elections

Strategic Objective 7: Work continued to develop the Centre for Elections Learning and on the success of the training model adopted for the 2006 municipal elections Performance driven training via the Centre for Elections Learning Technology used for mass learning (e-learning)

Overview of Financial Management 2006/2007 ELECTORAL COMMISSION Overview of Financial Management 2006/2007

Finance Continue to ensure that the financial management system promote the objectives of the PFMA and Treasury Regulations Continue to improve financial management systems to ensure that they are integrated, fast and user friendly. Strive to obtain an unqualified report from the Auditor General.

Operating and maintaining sound financial management systems, including internal controls Financial control systems functioned effectively Commission has a Finance Committee in place which performs an oversight role Recommendations by internal and external audits were implemented Statutory monthly reports were submitted to National Treasury on or before the 15th of each month

Operating and maintaining sound financial management systems, including internal controls Effective implementation and management of electronic procurement system Stringent audits of companies considered for contracts Implementation of National Treasury reporting requirements Implementation of contract management system Implementation of asset management system Skills development for supply chain management functions

To operate and maintain sound financial management systems, including internal controls Contributions to Black Economic Empowerment and Small Business 197 contracts awarded of which 138 (+/- R9,095 million) went to BEE companies 95% of bids awarded via eProcurement auctions went to BEE companies 3,05% of contracts were awarded to non-SMMEs

Audit Report The Electoral Commission has been getting unqualified audit reports since its inception. The Electoral Commission also received an unqualified audit report for the 2007 financial year.

Operating and maintaining sound financial management systems, including internal controls Internal Audit Review statutory reports to National Treasury Review and report on control and authorisation processes for procurement Conduct audits in selected MEO offices and all provincial offices Review HR records Monitor asset verification

Accounting Policy The Annual financial statements have been prepared in accordance with Statements of Generally Accepted Accounting Practice (GAAP) with the prescribed Standards of GRAP which replace the equivalent Standards of GAAP. Recognition and measurement principles in GAAP and GRAP do not result in material differences, it is only the terminology that changed. Financial statements have been prepared on the historical cost basis.

Funds received and spent The Commission received R350 million from The Department of Home Affairs; The Commission received an amount of R138,103 million from The Department of Foreign Affairs for the DRC project, from which we spent R127,432 million, which is included in our income and the remaining R10,671 million is disclosed as a liability. Sundry income of R18,141 million, consisting largely of interest earned was generated bringing the total income to R495,573 million; All the funds had been accounted for and disclosed in the financial statements; The Commission received an unqualified audit report from the Auditor General for the last financial year.

EXPENDITURE: Standard Items Actual Expenditure vs Budget Summary : Economic Classification Report for the year ended 31 March 2007 EXPENDITURE: Standard Items Budget (Including Adjustments Estimate) Total Expenditure 2006/2007 Variance – Saving / (over-expenditure) Variance - % Personnel Expenditure R’000 160,811 R’000 139,656 R’000 21,155 13% Administrative Expenditure 100,471 92,202 8,269 8% Stock 75,368 72,118 3,250 4% Equipment 6,787 6,540 247 Land & Buildings 17,386 15,750 1,636 9% Professional & Special Services 113,310 109,148 4,162 Miscellaneous Expenses 4 0% Depreciation 21,616 Deficit on Disposal of Assets 235 (235) TOTAL EXPENDITURE 495,753 457,269 38,484

Detailed Income and Expenditure Statement for the year ended 31 March 2007 2007 R 2006 INCOME 495 573 286 967 571 216 Parliamentary allocation 350 000 000 944 258 000 Government allocation (DRC) 127 432 061 2 731 204 Political party registration fees 4 700 19 300 Interest received 15 255 057 18 516 664 Sponsorship income - 700 000 Other income 2 881 468 1 346 048

Detailed Income and Expenditure Statement for the year ended 31 March 2007 2007 R 2006 EXPENDITURE Personnel expenditure 139 655 849 237 829 571 Salaries 133 615 693 226 330 930 Remunerative allowances 257 827 641 036 Gratuities 1 256 875 4 817 416 Employer’s contributions 4 520 437 5 985 316 Relocation costs 5 017 54 873

EXPENDITURE (continued) Administrative expenditure 2007 R 2006 EXPENDITURE (continued) Administrative expenditure 92 201 846 255 074 080 Subsistence expenditure 2 931 966 132 649 078 Transport expenditure 9 435 361 47 651 742 Air Transport 5 093 113 4 691 862 Communication expenditure 9 754 484 20 163 766 Study expenditure 161 236 64 028 Regional council levy 150 495 1 371 253 Advertisements 946 602 2 241 502 Catering expenditure – workshops, training and other 1 151 801 11 446 101 Membership & registration 1 445 897 1 031 647 Insurance 549 232 938 158 Conferences and workshops 9 959 195 30 780 460 Relocation costs 3 081 - Administrative expenses – (DRC) 50 619 383 2 044 483

2007 R 2006 EXPENDITURE (continued) Printing (Stock) 72 118 371 77 935 724 Purchase of equipment and software 6 014 668 8 617 922 Rented equipment 525 621 2 836 175 Rental - Land and buildings 15 750 425 46 618 841 Professional & other services 109 147 942 273 640 718 Miscellaneous expenditure 3 530 29 670 Depreciation 21 615 953 23 829 810 Deficit on disposal/scrapping of assets 234 624 35 916 Interest paid - 38 082  Total expenditure 457 268 828 926 486 509  Surplus for the year 38 304 458 41 084 707 

Preparations for 2009 Elections

Institutional preparations Review and re-organization of Electoral Commission now complete 90% of vacancies at national & provincial levels to be filled by end-April 2008. Balance to be filled by end-June 2008 Local delivery agents at municipal level finalised Consultations with SALGA complete Consultations underway with municipal councils on appointment of MEOs. Appointments of MEO scheduled for completion at the end of April 2008

Operational preparations Replacement of technology (PBSUs) used to register voters; currently adjudicating of the tender responses – to be completed by end-March 2008 Information technology upgrades aimed at improving IT support: Migration from Visual Basic to dot.NET by end September 2008 Implementation of SAP by 1 April 2008 Review and update of voting district boundaries and voting station network vis-à-vis changes in population settlement patterns; to be completed by end-May 2008 Target of 22 million registered voters for 2009 Elections. There are 20,3 million registered voters on the voters’ roll currently Voter registration gap mainly among the youth (18–35 years) – schools & tertiary education institutions to be targeted

Operational preparations…cont Continuous voter registration at local offices of Commission until the certification of the voters’ roll Special targeted registration initiatives Two voter registration weekends planned – all 20,000 voting stations opened: 8 & 9 November 2008 7 & 8 February 2009 60,000 registration officials to be recruited per registration weekend PLCs to be consulted on choice of registration officials by end-Sept 2008, before concluding contracts with registration staff Training of officials to start in early October 2008

Operational preparations…cont Training of Party Agents, Registration and Voting Officials, Security Personnel and MEO staff has been prioritised and scheduled for completion by early November 2008 Enhanced transparency of voting and results process through: scanning of results slips improve political party access to results information for analysis Improve efficiency and transparency of resolution of election complaints

Operational preparations…cont Outreach programmes to commence in earnest, in April 2008 Voter education and communication campaigns for registration to be intensified from September 2008 Official launch of 2009 Elections in September 2008 Communication campaigns to be supported by: public contact centre toll-free telephone number Web site Mobile telephone text (SMS) facility Bank ATMs

Thank you