2ND QUARTER PERFORMANCE REPORT GAUTENG DEPARTMENT OF e-GOVERNMENT 2016/2017

TABLE OF CONTENTS FINANCIAL PERFORMANCE REPORT 1.1 Expenditure Analysis 1.2 Summary of Financial performance NON-FINANCIAL PERFORMANCE REPORT 2.1 Overview of Non-Financial Performance QUESTIONS AND ANSWERS

OVERVIEW OF FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE REPORT

EXPENDITURE ANALYSIS 56 440 36 864 19 576 65% 225 760 76 467 149 293 PROGRAMMES QUARTER 2 TOTAL APPROPRIATION 2016-17 Straight line Projections R’000 Actual Expenditure Variance % Spent (Straight line) Appropriation YTD Expenditure Administration 56 440 36 864 19 576 65% 225 760 76 467 149 293 34% Policy Planning, Strategy Development and Support Services 103 405 62 100 41 305 60% 413 618 184 657 228 961 45% Solutions, Systems& Operations 138 055 86 712 51 343 63% 552 220 228 750 323 470 41% Regulations, Compliance & Public Relations 6 134 805 5 329 13% 24 534 6 503 18 031 27% TOTAL 304 033 186 481 117 552 61% 1 216 132 496 377 719 755 ECONOMIC CLASSIFICATION Current Payments 297 827 169 338 128 489 57% 1 191 308 478 737 712 571 40% Compensation of employees 125 998 76 888 49 110 503 991 155 458 348 533 31% Goods and services 171 829 92 450 79 379 54% 687 317 323 279 364 038 47% Transfers 137 85 52 62% 550 190 360 35% Capital payments 6 069 17 058 -10 989 281% 24 274 17 450 6 824 72%

BRIEF SUMMARY OF OVER/UNDER EXPENDITURE Reasons for Deviations   Compensation of Employees Delays in approval of the new e-Government structure have resulted in a variance in Compensation of Employees. The department is constantly engaged in discussion with DPSA to finalize the approval. Compensation of Employees budget was prepared with the anticipation that the e-Gov structure would be approved timeously, The department has since obtained Treasury approval to shift the savings from Compensation of Employees budget to Goods and Services as part of 2016/17 budget adjustment. Goods and services Certain services rendered in September were invoiced in October, hence the under spending at the end of Q2. Capital payments The spend on capital payment is mainly due to acquisitions of capital assets for related to the continued rollout the GBN connectivity project.

2. NON-FINANCIAL PERFORMANCE OVERVIEW OF NON-FINANCIAL PERFORMANCE 2. NON-FINANCIAL PERFORMANCE

PROGRAMME 1 ADMINISTRATION

Outputs / key deliverables Actual performance against targets ADMINISTRATION Outputs / key deliverables Quarterly Target Actual performance against targets Challenges Remedial Actions Produce accountability reports 15 accountability reports produced Produced 15  accountability reports None Target Achieved Payment of suppliers within 30 working days of receipt of invoices 100% of suppliers paid within 30 days from receipt of invoice   Paid 99% of suppliers within 30 days from receipt of invoice There were two invoices that were not paid within 30 days of receipt of invoice:1 One supplier had an expired Tax Clearance 2.System could not pick up the vendor on the payment proposal because of the name change The system generated (automated) message gets sent to the suppliers a month and a week before their tax clearance certificate expires. The system was mapped from the old system to the national treasury database. Procurement spend of RFQs below R500 000 on township economy 30% procurement spend of RFQs below R500 000 on township economy 31% procurement spend of RFQs below R500 000 on township economy SMS and SCM staff security vetted 100% of SMS and SCM staff security vetted Vetted 100% of SMS and SCM staff security

Outputs / key deliverables Actual performance against ADMINISTRATION Outputs / key deliverables Quarterly Target Actual performance against targets Challenges Remedial Actions Compliance to GDF Service Standards 96% Compliance to GDF Service Standards 99% Compliance to GDF Service Standards None Target Achieved Accreditations of township based youth entrepreneurs facilitated 100 accreditations of township based youth entrepreneurs facilitated 100 accreditations of township based youth entrepreneurs facilitated Training and job opportunities facilitated for unemployed ICT youth 200 Training and job opportunities facilitated for unemployed ICT youth 206 Training and job opportunities facilitated for unemployed ICT youth

Outputs / key deliverables Actual performance against ADMINISTRATION Outputs / key deliverables Quarterly Target Actual performance against targets Challenges Remedial Actions Evaluation study published on the Employee Self Service application Evaluation study published on the Employee Self Service application by 31 July 2016 Approved Evaluation study published on the Employee Self Service application by 31 July 2016 None Target Achieved Approved and published Annual Report Annual Report was approved and published

POLICY PLANNING, STRATEGY DEVELOPMENT AND SUPPORT SERVICES PROGRAMME 2 POLICY PLANNING, STRATEGY DEVELOPMENT AND SUPPORT SERVICES

POLICY PLANNING, STRATEGY DEVELOPMENT AND SUPPORT SERVICES Outputs / key deliverables Quarterly Target Actual performance against targets Challenges Remedial Actions Approved GCR e-Government Governance Framework GCR e-Government Governance Framework approved Approved GCR e-Government Governance Framework None Target Achieved GCR e-Government Community of Practice 1 GCR e-Government Communities of Practice established Established 1 GCR e-Government Communities of Practice GCR e-Government Forum’s ToRs finalised GCR e-Government Forum’s ToRs finalised 2 GCR e-Government Forum’s ToRs signed off Approved GCR e-Government Information Security Framework GCR e-Government Information Security Framework approved

SOLUTIONS,SYSTEMS AND OPERATIONS PROGRAMME 3 SOLUTIONS,SYSTEMS AND OPERATIONS

SOLUTIONS,SYSTEMS AND OPERATIONS Outputs / key deliverables Quarterly Target Actual performance against targets Challenges Remedial Actions G2C sites connected(Thusong Centres & Libraries) 6 G2C sites connected Connected 6 G2C sites None Target Achieved G2B sites connected(Economic zones, ikasi Labs, mLabs ) 2 G2B sites connected Connected 2 G2B site G2G sites connected (Departments and Agencies) 160 G2G sites connected Connected 160 G2G sites % Network Availability of Broadband Access and Access points 98% Network Availability of Broadband Access and Access points 99.98% Network Availability of Broadband Access and Access points Entities assessed for cloud readiness 4 Entities assessed for cloud readiness 3 Entities assessed for cloud readiness The Department is required to procure ICT infrastructure through SITA as per legislation. The Department has engaged and obtained a commitment from SITA to manage the GPG private cloud on behalf of the provincial government. The Department is reluctant to migrate other entities onto the cloud whilst we are still in the process of finalising the new terms and conditions with SITA.

SOLUTIONS,SYSTEMS AND OPERATIONS Outputs / key deliverables Quarterly Target Actual performance against targets Challenges Remedial Actions Entities connected to private cloud 3 entity connected to private cloud 0 entities migrated to the GPG private cloud The Department is required to procure ICT infrastructure through SITA as per legislation. The Department has engaged and obtained a commitment from SITA to manage the GPG private cloud on behalf of the provincial government. The Department is reluctant to migrate other entities onto the cloud whilst we are still in the process of finalising the new terms and conditions with SITA. Implemented Common Technology Platform Detailed Solution Architecture Designed The detailed solution Architecture specifications (website) of the common platform has been completed The process of designing the solution took longer than anticipated The tender will be awarded during the month of October. The Detailed Solution Architecture will be completed before the end of the financial year. %Projects completed on budget 90% projects completed on budget None Target Achieved

REGULATIONS AND COMPLIANCE ICT SHARED SERVICES PROGRAMME 4 REGULATIONS AND COMPLIANCE

REGULATIONS AND COMPLIANCE Outputs / key deliverables Quarterly Target Actual performance against targets Challenges Remedial Actions % of Change & transformation Management activities completed per plan 50% of Change & transformation Management activities completed per plan 62.5% of Change & transformation Management activities completed per plan None Target Achieved Number of Registered users (citizens) 400 Registered users Registered users 71,906 Number of Registered users (business) 2 Registered users Registered users 4,714   Number of Registered users (employees) 200 Registered users Registered users 3,218 Number of Registered users (government) 1 Registered user Registered user 2

ICT SHARED SERVICES REGULATIONS AND COMPLIANCE Outputs / key deliverables Quarterly Target Actual performance against targets Challenges Remedial Actions Strategic partnership concluded 1 Strategic partnership concluded 1 Strategic partnership concluded with innovation hub None Target Achieved Compliance to e-Government Township Economy Framework Achieved Compliance to e-Government Township Economy Framework Achieved Number of entrepreneurship workshops completed 6 entrepreneurship workshops completed Completed 6 entrepreneurship workshops Innovation and Incubation Collaboration Framework approved Approved Innovation and Incubation Collaboration Framework

ICT SHARED SERVICES REGULATIONS AND COMPLIANCE Outputs / key deliverables Quarterly Target Actual performance against targets Challenges Remedial Actions Identified entrepreneurs successfully incorporated into the e-Government service delivery programmes 1 Identified entrepreneurs successfully incorporated into the e-Government service delivery programmes None Target Achieved Partnership Agreements 1 Partnership Agreements 1 Partnership Agreement concluded

ICT SHARED SERVICES HUMAN RESOURCE SERVICES HEAD COUNT Programmes Post Establishment Filled Positions Vacancies % Vacancies Administration 288 268 20 6.9% ICT Shared Services 171 156 15 8.77% Human Resource Services 252 248 4 1.58% TOTAL 711 672 39 5.4% NB: The vacancy rate reported is based on the old GDF structure. The department is in the process of consultation with DPSA on the new e-Gov structure.

Responses to Questions No. Question Response   With regards to the Compensation of Employees, the report indicated that the underspending was attributed to the delay in approval of the e-Government structure. Furthermore, it was reported that the Department is constantly engaged with DPSA to finalise the approval of the structure. What is the recent outcome of the meeting between the Department and DPSA? The Department met with the DPSA to finalise the business case and the Service Delivery Model for the proposed structure. The Department aims to have the structure approved for implementation in the 2017/18 financial year.

Responses to Questions No. Question Response 2. Due to the delayed approval of the structure, the report indicated that there will be shifting of funds from Compensation of Employees to the Goods and Services account. How much will be shifted and for what purposes under the Goods and Services account? A total amount of R171 million was shifted from Compensation of Employees to Goods and Services. The following projects received additional funding: GBN; for the rollout of additional sites in targeted areas = R89 million The DAV Centre; to consolidate the role of the DAV centre in the province through the facilitation of incubation programmes and the testing of provincial e-services = R22,8 million To conduct the approved audit of ICT functions in the province = R4 million To procure 2 mobile ICT busses to support all provincial campaigns that require ICT services = R6 million To procure additional applications, enhanced security and ICT infrastructure for the province = R50 million.

Responses to Questions No. Question Response 3.  The second quarter report indicated that the Department has connected 6 G2C sites, 2 G2B sites and 160 G2G sites. With regards to Thusong Centres and Economic Development Zones, the Committee noted that some of the challenges identified were poor state of the infrastructure and delayed provision of computers. What is the status quo in pursued of the municipalities to refurbish the identified infrastructure? During the rollout of the GBN Network, the Department has identified sites where municipalities have not provided the necessary infrastructure for citizens to access eGovernment services and applications through the GBN network. To address this, the Department has identified two sites in the West Rand District that it will refurbish to be the standard model for all Thusong Centres in the province. The Department will then engage municipalities to collaborate with the province in implementing the refurbishments required in all remaining Thusong Centres. 4.  How many sites are functional / operational and when will others start operating in order to realize value for money?   There is currently one site that is operational, namely, the Maponya Mall site. The Department is engaging with municipalities to provide all sites with the required infrastructure. The Department of e-Government has identified two sites in the West Rand that will be upgraded to be model sites for the province.

Responses to Questions No. Question Response 5.  With regard to entities that were not connected due to Telkom services termination and subsequent attainment of the commitment from SITA to ensure the management of the private cloud on behalf of provincial departments. How far is the Department with regard to finalizing the Terms and Conditions with SITA to avoid further delays? The Department of e-Government is required to procure ICT infrastructure through SITA as per legislation. The Department has engaged and obtained a commitment from SITA to manage the GPG private cloud on behalf of the provincial government. The Department has agreed to cede the contract to SITA and the process regarding the migration of the remaining departments will commence in November 2016. 6.  Can the Department explain the reasons for below 75% spending under all Programmes in the second quarter and also measures taken to ensure that the spending levels are maximised in the second half of the financial year? The Department is required to spend 50% of its budget by the end of the Second Quarter of the financial year. The expenditure was at 41%. The underspending was primarily as a result of 31% expenditure under Compensation of Employees. This is due to the Department awaiting approval of the proposed organisational structure. Budgets are continuously reviewed and re-prioritization of funds from slow spending areas to high performing projects is implemented.

Responses to Questions No. Question Response 7.  With regards to e-Government regulations and compliance programme, the Committee noted that the Department spent only 13% of what was allocated for the second quarter. Can the Department please explain reasons for this under-spending? The budget under the Regulations and Compliance programme relates to the Audit of ICT Functions across all provincial government departments. The audit will be conducted in the Fourth Quarter of the financial year. Also, the Department will be procure 2 mobile ICT busses to support all provincial campaigns that require ICT services, under this programme.

3. QUESTIONS AND ANSWERS THANK YOU