Portfolio Committee on Communications Presentation on the Annual Reports 2015/16 of the Department of Communications and its Entities 11 October 2016

This Presentation Fact Sheet Approach to Accountability Annual Reports Financial Information Department GCIS

Fact Sheet The EA approves the strategy and this is tabled in the Legislature; Leadership positions are expected to perform their duties in the best interest of the Department; The Public Finance Management Act (Act No 1 of 1999 as amended by Act 29 of 1999) stresses the need for accounting officers (and those to whom managerial responsibilities have been delegated) to regularly monitor and report on the performance of their Departments against (the agreed budget for the year); This is not a mechanistic requirement to ‘tick boxes’, but one element in a process designed to improve the use of limited financial resources in the delivery of services to communities; and Reports must focus attention on performance against budget and against service delivery plans, and will alert EA where remedial action is required.

EA must ensure that PA’s are consistent with the operational plan! In-Year Management, Monitoring and Reporting EA must ensure that PA’s are consistent with the operational plan!

Role of Accountability Accountability is about the assessing of both financial and non-financial information; and It is the accountability for outputs and performance: Resources allocated – how much actually consumed? Was there overspending or underspending? What was achieved in relation to the mandate of the Department?

Accountability Cycle for Performance Information

Role-Players in Accountability Cycle Executive Authority Accounting Officer National Treasury Accounting Standards Board PCC Standing Committee on Finance Auditor-General

Accountability Instruments Statutory Documents Strategic Plans and APP’s Estimates of National Expenditure Section 32 In-Year Monitoring Reports (Formats) Annual Reports Audit Report (External Auditor) General Report of the AG on Audit Outcomes

Accountability Instruments Guides Regulations for Preparing Strategic Plans Guide for the Preparations of AR and AFS Guide to understand oversight Reports of the Department Framework for Managing Programme Performance

Functions and Powers of NT

NT Support to Stakeholders

Annual Report

Purpose of the Annual Reports The Annual Report is an important tool in the accountability loop and is thus primarily for accountability purposes; It should describe actual results and compare them with planned results, explaining any significant variances; It should include information about factors critical to understanding performance, including identifying significant risks, capacity considerations, and other factors that have an impact on performance and results; and Link financial and non-financial information to show how resources and strategies influence results.

Contents of Annual Reports

Contents of Annual Reports

Matters for PCC to Consider Does the report include all relevant content? Is the information communicated simply and clearly? Is there sufficient information provided by the Department or entities reporting to it on complex matters? Is the report original, (cut & paste)? Is each measurable objective specified in the PAP reported on in the report? Is the service delivery information consistent with the mandate of the Department? Does management demonstrate a commitment to address concerns raised by the oversight bodies (i.e. PCC, SCOPA, Audit Committees & AGSA)? and Does the Department or entities reporting to it have sufficient resources (HR) to achieve objectives, if not what plans are there to address shortcomings?

The Importance of Governance It is a reflection on the Department and or its entities to commit to maintain the highest standards of governance (fundamental prescripts for management of public funds); and The public must be assured that the Department has ‘good-governance’ structures in place to effectively, efficiently and economically utilize state resources for the benefit of the public

Governance Information

Governance Information

Role of Risk Management (RM) Responsibility for RM has been established in the PFMA RM framework has been established by NT Prudent for RM to achieve objectives The RM Committee roles and responsibility is established in RM framework Management responsibilities for risk ownership and management Risks must be assessed on a regular basis Risk management plans must be regularly assessed IA to assess the key risk facing the Department Responsibility of IA and AG to provide independent assurance on the effectiveness of RM processes Annual Report to disclose on RM arrangements

Role of Internal Audit (IA) The Executive should ensure that the Department has an effective and independent Audit Committee Audit Committee members should be suitably skilled and experienced independent non- executive directors The Audit Committee should be chaired by an independent non-executive director The Audit Committee should oversee integrated reporting The Audit Committee should ensure that a combined assurance model is applied to provide a coordinated approach to all assurance activities

Audit Committee Reports Membership and attendance to committee meetings The effectiveness of internal control systems The effectiveness of the internal audit function The risk areas pf the Department and its entity’s operations to be covered in the scope of internal and external audits Significant accounting and auditing concerns and follow-up recommendations made by interal and external audits; and The Department and its entity’s compliance with legal and regulatory provisions

Final Appropriation Vs Actual Expenditure DoC 2015/16 Final Appropriation Vs Actual Expenditure

Quarterly Expenditure Trends DoC 2015/16 Financial Year Quarterly Expenditure Trends

Appropriation Vs Expenditure Trends Per Programme DoC 2015/16 Financial Year Appropriation Vs Expenditure Trends Per Programme

Appropriation Vs Expenditure Trends Per Programme DoC 2015/16 Financial Year Appropriation Vs Expenditure Trends Per Programme

Appropriation Vs Expenditure Trends Per Programme DoC 2015/16 Financial Year Appropriation Vs Expenditure Trends Per Programme

Appropriation Vs Expenditure Trends Per Programme DoC 2015/16 Financial Year Appropriation Vs Expenditure Trends Per Programme

Variance in Expenditure Trends (R’000) DoC 2015/16 Financial Year Variance in Expenditure Trends (R’000)

Over/Under Expenditure Trends (R’000) GCIS 2015/16 Financial Year Over/Under Expenditure Trends (R’000)

Variance in Expenditure Trends (R’000) DoC 2015/16 Financial Year Variance in Expenditure Trends (R’000)

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