Predetermined Objectives – 2013/14 SABC Predetermined Objectives – 2013/14 April 2013 Portfolio committee

Reputation promise/mission The Auditor-General of South Africa has a constitutional mandate and, as the Supreme Audit Institution (SAI) of South Africa, it exists to strengthen our country’s democracy by enabling oversight, accountability and governance in the public sector through auditing, thereby building public confidence.

OVERVIEW The final draft of the 2013-2016 Corporate Plan was reviewed for The South African Broadcasting Corporation (SABC). All indicators and targets contained in the Corporate plan were reviewed Our focus was to assess the usefulness of the information contained in the plan in terms of the: measurability and relevance of indicators (well-defined, verifiable, relevant) measurability of targets (specific, measurable, time-bound, relevant) Findings and discussions Conclusion in management report

Findings – Measurability of Indicators WELL- DEFINED Definition: The indicator needs to have a clear, unambiguous definition so that data will be collected consistently and be easy to understand and use. Error rate: 84% of indicators were not well-defined (Goal 1,2,3,4,6&7). Example 1: Strategic goal 1 - putting broadcasting at the forefront (audience attraction and retention) Strategic Objectives Motivate and drive key policy reviews that affect the SABC's ability to compete within the changing broadcasting landscape. Indicators An ICT Policy that enables the SABC to compete Target Drive amendments to Must Carry regulations, DTT channel licensing and SABC Funding Model. Comments Not able to assess amongst others: * the processes followed to collect information; * supporting documentation used; * method of calculation, etc The indicator is therefore not well-defined and not verifiable (no process stated) Example 2: Strategic goal 3 - An easily understood operating model supported by appropriate OD An efficient organisation that is able supported by adequate skills to effectively implement DTT Operations. Indicator Develop staff and content supplier DTT skills Implement appropriate training programmes Technical indicator description not compiled. Not able to assess amongst others: * the processes followed to collect information; * supporting documentation used; * method of calculation, etc The indicator is therefore not well-defined and not verifiable (no process stated)

Findings – Measurability of Indicators (continued) VERIFIABLE Definition It must be possible to validate the processes and systems that produce the indicator. Error rate: 84% of indicators were not verifiable (Goal 1,2,3,4,6&7). Example: Same as for well-defined.

Findings – Measurability of Targets SPECIFIC Definition: The nature and the required level of performance can be clearly identified. Error rate: 76% of targets were not specific (Goal 1,2,3,4,6&7). Example 1: Strategic goal 6 - Building a digital SABC ( Enhance public service) Strategic Objectives Universal access - increase roll out of service delivery through cost effective modern digital technologies (funding dependent) Indicators Enable access to broadband connectivity and appropriate content through the Set Top Box as part of e-learning via internet access and interactive educational content. Target Develop multi-play out capability to suit varied access formats Comments The required level of performance is not stated. The nature of what needs to be done is also not clear.

Findings – Measurability of targets (continued) MEASURABLE Definition: The required performance can be measured. Error rate: 76% of targets were not measurable (Goal 1,2,3,4,6&7). Example 1: Strategic goal 6 - Building a digital SABC ( Enhance public service) Strategic Objectives Universal access - increase roll out of service delivery through cost effective modern digital technologies (funding dependent) Indicators Enable access to broadband connectivity and appropriate content through the Set Top Box as part of e-learning via internet access and interactive educational content. Target Develop multi-play out capability to suit varied access formats Comments The required level of performance is not stated. The nature of what needs to be done is also not clear. Measurability - As the required level of performance is not stated (refer to constraints on specific criteria) the target performance cannot be measured in assessing whether it has been achieved / not achieved.

Findings – Measurability of targets (continued) TIME BOUND Definition: The time period or deadline for delivery is specified. Error rate: 14% of targets were not time bound (Goal 4,6&7) Example: Strategic goal 4 - Economical, Efficient and Effective (Cost Management) Strategic Objectives Reduce organisational costs Indicators Head count management Target Instil a performance management culture across all levels within the organization Comments No quarterly breakdown provided for milestones to be reached per quarter to ensure that target is achieved at the end of the reporting period.

Findings – Relevance RELEVANCE Definition: Indicators : The indicator must relate logically and directly to an aspect of the institution’s mandate and the realization of strategic goals and objectives. Targets: The required performance is linked to the achievement of a goal. Error rate: 3% of indicators and related targets were not relevant (Goal 6) Example 1: Strategic Goal 6 Building a digital SABC (Enhanced public service) Strategic Objective Universal Access: Increase rollout of service delivery through cost effective modern digital technologies (funding dependent) Indicator Enable access to broadband connectivity and appropriate content through the Set Top Box as part of e-learning via internet access and interactive educational content Target Develop multi-play out capability to suit varied access formats. Collaborate with content suppliers in appropriate content development.

TECHNICAL INDICATOR DESCRIPTIONS The Framework for Managing Programme Performance Information (FMPPI) chapter 5 paragraph 5.2 requires that the accounting officer ensures the existence of the documentation addressing the following: Definitions and technical standards of all the information collected by the institution; Processes for identifying, collecting, collating, verifying and storing information. Technical indicator description published – not required

CONCLUSION The errors identified relating to the 2013/14 plan: Targets not specific: above the threshold for qualification; Targets not measurable: above the threshold for qualification; Targets not time bound: below the threshold for qualification; Indicators not well-defined: above the threshold for qualification; Indicators not verifiable: above the threshold for qualification; Indicators and related targets not relevant: below the threshold for qualification. Thresholds on errors identified: 0% to 19%  No opinion 20% to 50%  Qualified Above 50%  Adverse or disclaimer

RECOMMENDATION Leadership required to guide and direct the development and implementation of proper performance planning and management practices Clearly defined roles and responsibilities linked to corporate plan and individual performance contracts. Training and consultation with National Treasury to enable application of the principles in the FMPPI Develop and implement standard operating procedures (establish policies and procedures). Improve record keeping A forum should be established for the portfolio to share insights and have a consistent approach. Continue to involve the AGSA in the planning process (management started very late with the process and involved the AGSA late in the process). Leadership required to guide and direct the development and implementation of proper performance planning and management practices to provide for the development of a corporate plan in line with the FMPPI (communication gap between Group executives, Strategic support and the board)

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