17 October 2012 Joint presentation between National Treasury and DWCPD PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATIONS 11/3/2015 1

STRUCTURE 2  Areas of concern ( identified by both departments)  Agreed interventions  Progress to date  What remains to be done ( including timelines) 11/3/2015

AREAS OF CONCERN 3  Non-prioritisation of the budget towards filling key positions  Failure to spend within the allocated budget  Unauthorised expenditure (3.7 mil & 22 mil)  Failure to comply with the PFMA and other prescripts  Unclear Mandate (perceived duplication)  Top heavy structure  Failure to meet targets (deliver on the mandate)  Weak financial management / lack of skills in critical areas.  Lack of establishment and expansion plans  Unstable DG position  Unstable CFO position 11/3/2015

AGREED INTERVENTIONS 4  The Department will spend within the allocated budget  Baseline assessment to be conducted so that we prioritise within the priorities ( fiscal limitations)  Training / Workshops on financial management  Treasury, through the office of the Accountant General; to provide technical support to the department, including seconding a CFO.  Minister of Women, Children and People with Disabilities meet with the Minister of Finance 11/3/2015

AGREED INTERVENTIONS 5  A turn-around strategy and plan be developed and implemented  Recruit a suitably qualified CFO  Appoint people in the critical areas of Finance, Risk, Audit and Asset Management  Develop establishment & expansion plans  Appoint an appropriately qualified DG  Appoint an appropriately qualified CFO 11/3/2015

PROGRESS TO DATE 6  Austerity measures have been implemented to ensure expenditure within the budget  12 million rand has been added to the departments compensation budget through the AENE  A support team from STATS SA has been enlisted on an adhoc basis  A CFO has been seconded from Treasury  A risk management support has been provided by Treasury thus leading to compilation of a risk register  A draft turn-around strategy has been developed  TAU considering developing establishment and expansion plans 11/3/2015

PROGRESS TO DATE 711/3/2015 Priority Turn-Around Focal Area Corrective ActionStatusBudget 1. Financial Management Up-to-date budget vs expenditure information to the responsibility managers Cash flow reports (available budget, monthly expenditure) are been sent out to the responsibility managers on a bi-monthly basis and monthly to NT as per the requirement. Financial implications covered with existing budget.

PROGRESS TO DATE 811/3/2015 Priority Turn-Around Focal Area Corrective ActionStatusBudget.Financial Management, cont.. Bank reconciliations done on a daily basis. Daily clearance of exceptions on the bank account is performed, reviewed, signed-off and filed for audit purposes. Monthly reconciliations on cash & cash equivalents are done, reviewed and submitted to NT. Financial implications covered with existing budget. Segregation of duties in respect of SCM Finalisation of Logis administrator position to be filled at level 5 by November R (will be covered with additional funds received.) Complete and accurate asset register implemented on LOGIS or similar system The recruitment of staff member is in process and will be finalised by December The register is been updated by Facilities Management as part of the control of movement of assets. R (Will be covered with additional funds received.)

PROGRESS TO DATE 911/3/2015 Priority Turn-Around Focal Area Corrective ActionStatusBudget/ expenditure.3Overspending Formal training workshops on financial management 16 official received training on SCM in October R

WHAT REMAINS TO BE DONE 10  Finalise the turnaround strategy and draft a plan for implementation.  Review and finalise Financial and Supply Chain Management delegations by November 2012  Establish Financial procedures manual for financial management by December 2012  Review existing and establish new policies for financial management by December 2012  Finalise recruitment of additional HR, Finance and SCM staff by March 2013  Review and update register and incorporate into LOGIS by December 2012  Training staff of LOGIS functions by December 2012  Training staff on suspense accounts management by March 2013  Training senior end users on SCM by March 2013  Implement findings of the Fluxmans Report  Appointing a DG asap  Appointing a CFO asap  Develop establishment and expansion plan by 30/12/12  SCOPA decision on R3.7 and R22 million over-expenditure 11/3/2015