1. Portfolio Committee on Telecommunications and Postal Services
Presentation to the
Portfolio Committee on Telecommunications and Postal Services
Committee Chairperson - Honourable Ms. Mmamoloko Kubayi
USAASA and USAF Quarter 2 Performance Reports
21 February 2017
“Universal Access and Service to ICT for All”

2. Vision, Mission & Values
To facilitate the rollout of adequate Information and Communication Technology (ICT) infrastructure to enable universal access to under-serviced areas in South Africa.
To facilitate ICT service to under-serviced areas and thereby contributing to the reduction of poverty and unemployment in South Africa.
To promote and pursue the goal of Universal Access and Services and contribute to the sharing and preservation of information in order to build South Africa’s sustainable knowledge society.
Values:
Batho Pele – We believe in providing excellent, efficient and effective service to all customers and stakeholders.
Integrity – We uphold high standards of trust; condemn bribery and corruption; and uphold honesty and respect in all interactions with stakeholders.
Accountability – We foster employee ownership and responsibility in ensuring quality service.
Innovation – We support employee creativity in delivering all our services.
Transparency – We encourage openness in all our activities.
Teamwork – We strive to create a harmonious work environment, where all employees and contributors are respected.
Vision:
“Universal Access and Service to ICT for All”.

3. USAASA & USAF Strategic Objectives 2016/17 – 2020/21
Optimise organisational efficiency by 2021 to support the project delivery of the Universal Service and Access Fund
Optimise organisational efficiency by 2021 to support the project delivery of the Universal Service and Access Fund
Ensure availability of automated and integrated business processes by 2021 to support the project delivery of the Universal Service and Access Fund
Ensure availability of responsive IT systems by 2021 to support the project delivery of the Universal Service and Access Fund
Provide legally sound services to the Agency by 2021 to support the project delivery of the Universal Service and Access Fund
Render an effective financial management function by 2021 to support the project delivery of the Universal Service and Access Fund
Promotion of good governance within the Agency by 2021
USAASA established as a centre of excellence for universal access and universal service market information, knowledge and expertise by 2021
Promotion of good stakeholder relations for purposes of enhancing the USAASA & USAF brands by 2021
USAF
To provide access to ICT services in 6 identified under-serviced areas by 2021 as part of implementing the South Africa Connect digital development strategic pillar to complete the National Health Insurance Districts.
To facilitate the broadband connectivity of educational institutions, primary health care facilities and government institutions by 2021.
To fund digital television access equipment for qualifying TV-owning needy households by 2021.

4. USAASA Q2 Performance Human Resources Performance Outcomes:
Achieved targets
Work Skills Plan implementation
Targets not Achieved
Review Learning & Development policy
Q2 Progress: Learning & Development Policy was presented to EXCO, approved by REMCO and submitted to Board on 26 October 2016
Monitor and report on HR SLA implementation
Q2 Progress: HR SLA was submitted for approval on 26 October Implementation to commence thereafter
Legends
Achieved
Not Achieved
Information Technology Performance Outcomes:
Achieved targets
Monitor and report on percentage availability of business systems
Targets not Achieved
ERP System maintenance and support
Q2 Progress: A new Go-Live date was set for March 2017 to allow for finalisation of outstanding ERP activities
Capacitation of IT Human Resources through recruitment and Training of SAP Critical skills.
Q2 Progress: recruitment of SAP Critical skills to be considered as part of OD processes

5. USAASA Q2 Performance Legal Services Performance Outcomes: Achieved
Promote legal compliance by providing written legal opinions and/or advice within 7 working days and drafting contracts with 21 working days from date of receipt of all relevant information
Targets not Achieved
None
Legends
Achieved
Not Achieved
Research Performance Outcomes:
Achieved targets
None
Targets not Achieved
Impact assessments in three (3) identified USAF subsidised local municipal areas
Q2 Progress: Internal Fieldworkers have been prepared for impact assessment study. Conclusion of the assessments by December 2016

6. USAASA Q2 Performance Stakeholder Engagement Performance Outcomes:
Achieved targets
None
Targets not Achieved
Implementation of the Stakeholder Engagement Strategy and Integrated Communications Policy
Q2 Progress: Integrated Communications Policy was submitted for approval by BARC and Board: 26 October 2016
Corporate Governance Performance Outcomes:
Achieved targets
Monitor and report on organisational compliance with the PFMA and Treasury Regulations Checklist for Public Entities
Targets not Achieved
None
Legends
Achieved
Not Achieved

7. USAASA Mitigations: Q2 Performance
Unmet Quarter 2 Targets
Reasons for deviations
Action Plans
Review Learning & Development policy
Policy was approved by EXCO and REMCO but not submitted for Board approval by end of Q2
Policy submitted to Board for approval on 26 October 2016
Monitor and report on SLA implementation
Draft HR SLA not approved by the end of Q2 and implementation thereof could not commence in the same quarter
HR SLA was submitted for REMCO and Board for approval: 26 October 2016
ERP System maintenance and support of the implemented modules
The ERP system did not go-live as planned on 1st April 2016
A revised project plan was developed to finalise the project by year-end
A new Go-Live date was set for March 2017 to allow for finalisation of outstanding project activities

8. USAASA Mitigations: Q2 Performance
Unmet Quarter 2 Targets
Reasons for deviations
Action Plans
Capacitation of IT human resources through training on SAP Critical skills
Recruitment processes for SAP Technical Resources not initiated in Quarter 2
Capacitation of IT Human Resources is to be considered as part of the OD processes due to be finalised in Q3
Impact assessments in three (3) identified USAF subsidised local municipal areas
Change of strategy: to utilisation of internal resources instead of outsourcing
Fieldwork and data collection will be conducted in all six local municipalities by the end of November. Conclusion of the assessments: December 2016
Implementation of the Stakeholder Engagement Strategy and Integrated Communications Policy
Integrated Communications Policy was not implemented as it had not been submitted for approval by BARC and Board
The Integrated Communications Policy was submitted for BARC and Board approval (26 October 2016) and implementation will commence thereafter

9. Summary of USAASA 2016/17 Q2 Performance
USAASA Performance Outcomes:
4 of the 10 planned Q2 targets were achieved, being 40% of the total planned targets
6 of the 10 planned Q2 targets were not achieved, being 60% of the total planned targets

10. Summary of USAASA 2016/17 Performance by end of Q3
USAASA Q2 Performance Outcomes
4 of the 10 planned Q2 targets were achieved, being 40% of the total planned targets
6 of the 10 planned Q2 targets were not achieved, being 60% of the total planned targets
USAASA Q3 Performance Outcomes
7 of the 10 planned Q3 targets were achieved, being 70% of the total planned targets
3 of the 10 planned Q3 targets were not achieved, being 30% of the total planned targets
USAASA Cumulative Performance Outcomes:
24 of the 32 planned targets were achieved, being 75% of the total planned targets
8 of the 32 planned targets were not achieved, being 25% of the total planned targets

11. USAASA Staff Complement as at the end of Q3 2016/17
USAASA had 56 permanent employees and 4 interns as at the end of the quarter
Appointments
None
Terminations
Two resignations, one at executive management level and one at senior management level
One retirement at skilled level
Consequence Management
Non performance – three written warnings at executive management level
Insubordination – one suspension at senior management level
Breach of internal controls – one suspension/resignation at executive management level and one suspension at qualified professional level

12. AUDITOR GENERAL implementation action plan

13. AUDITOR GENERAL implementation action plan

14. USAASA 2016/17 Quarter 2 Budget Performance - Revenue
Description
Annual Budget Income (R’000)
Budget Q2 Income (R’000) Q2
Income (R‘000)
Revenue
Other Income -Interest, levies & tenders -
3 085
Transfers
USAASA Operations
69 045
17 261
Total revenue
20 346
Description
Annual Budget Income (R’000)
Budget YTD Income (R’000)
YTD
Income (R‘000)
Revenue
Other Income -Interest, levies & tenders -
6 116
Transfers
USAASA Operations
69 045
34 522
Total revenue
40 638

15. USAASA 2016/17 Quarter 2 Budget Performance - Expenditure
Description
Annual Budget (R’000)
Q2 Budget (R’000)
Q2 Actual Spending (R‘000)
Quarter Variances (R‘000)
Quarter % Spent
Expenditure
Compensation of employees
43 713
10 928
10 189
739
93%
Goods and services
24 218
6 054
6 957
-903
115%
Depreciation
698
-698
Other Capex
1 114
279
517
-238
185%
Total
69 045
17 261
18 361
-1 100
106%
USAASA Approved Retention of 2015/16 Unspent funds
Description
Total Budget (R’000)
Q2 Actual Spending (R‘000)
Available Budget
% Spent
BDM Distribution & Logistics
28 240
22%
Enterprise Resource Planning (ERP)
25 063 0%
Total
18%

16. USAASA 2016/17 Quarter 2 - YTD Budget Performance - Expenditure
Description
Annual Budget (R’000)
YTD Budget (R’000)
YTD Actual Spending (R‘000)
Quarter Variances (R‘000)
YTD % Spent
Expenditure
Compensation of employees
43 713
21 856
19 609
2 247
88%
Goods and services
24 218
11 770
11 037
733
94%
Depreciation
1 387
-1 387
Other Capex
1 114
896
656
240
73%
Total
69 045
34 522
32 689
-1 833
95%
USAASA Approved Retention of 2015/16 Unspent funds
Description
Total Budget (R’000)
YTD Actual Spending (R‘000)
Available Budget
% Spent
BDM Distribution & Logistics
28 240
22%
Enterprise Resource Planning (ERP)
25 063 0%
Total
18%

17. USAASA 2016/17 Quarter 2 Budget Performance - Expenditure

18. USAF Q2 Performance Report 2016-2017

19. USAF Q2 Performance Targets not Achieved
100% base stations upgraded for Mhlontlo and King Sabata Dalindyebo local municipalities
Q2 Progress: Base station upgrades were not completed
Broadband network connectivity maintained in 127 schools, 93 clinics and 38 traditional ICT centres
Q2 Progress: Usage to 98 sites out of 258 sites were monitored. 160 sites do not have a remote monitoring access facility and concerned service providers are working on providing it
Set-Top Boxes (STB’s) & antennas procured and installed for qualifying needy TV-owning households. SKA was area prioritised.
Q2 Progress: set top boxes & antennas installed for qualifying needy TV-owning households
USAF Performance Outcomes:
Achieved targets
None
Targets not Achieved
Backhaul upgrades completed for Mhlontlo and King Sabata Dalindyebo local municipalities in the OR Tambo District
Q2 Progress: Backhaul upgrades not completed due to delays in obtaining Confirmation letters and Environmental rights applications
Legends
Achieved
Not Achieved

20. USAF Mitigations: Q2 Performance
Unmet Quarter 2 Targets
Reasons for deviations
Action Plans
Backhaul upgrades completed for Mhlontlo and King Sabata Dalindyebo local municipalities in the OR Tambo District
Backhaul upgrades not completed due to delays in obtaining Confirmation letters and Environmental rights applications
Backhaul upgrades to be completed in Quarter 3
Project to be fast tracked to meet the end of financial year completion
100% base stations upgraded for Mhlontlo and King Sabata Dalindyebo local municipalities
Project experienced delays in the awarding of the bid to a licensed operator thus necessitating the procurement process to be concluded in Quarter 3
Procurement process to be concluded in Quarter 3
Base station upgrades to be completed in Quarter 3

21. USAF Mitigations: Q2 Performance
Unmet Quarter 2 Targets
Reasons for deviations
Action Plans
Broadband network connectivity maintained in 127 schools, 93 clinics and 38 traditional ICT centres
160 of the 258 connected sites do not have remote monitoring access facility
- Service providers concerned have been engaged by the Agency with a view to secure remote monitoring access facility by the 3rd quarter
Set-Top Boxes & antennas procured and installed for qualifying needy TV-owning households
The focus has been in the SKA area
9 501 set top boxes & antennas installed for qualifying needy TV-owning households during the quarter
Continued engagements with Department of Communications (DOC). The project is dependent on increased marketing awareness campaigns by the DOC

22. Summary of USAF 2016/2017 Q2 Performance
USAF Operations Performance Outcomes:
0 of the 4 planned Q2 targets were not achieved.
4 of the 4 planned Q2 targets were not achieved.

23. Summary of USAF 2016/2017 Performance by end of Q3
USAF Operations Q3 Performance Outcomes:
0 of the 3 planned Q3 targets were not achieved
3 of the 3 planned Q3 targets were not achieved.
USAF Operations Q3 Performance Outcomes:
0 of the 4 planned Q2 targets were not achieved.
4 of the 4 planned Q2 targets were not achieved.
USAF Operations Cumulative Performance Outcomes:
3 of the 14 planned targets were achieved, being 21% of the total planned targets. 3 targets of the 1st Quarter were achieved in 3rd Quarter.
11 of the 14 planned targets were not achieved, being 79% of the total planned targets

24. USAF 2016/17 Quarter 2 Budget Performance – Revenue
Description
Annual Budget Income (R’000)
Quarter 2 Budget Income (R’000)
Income (R‘000)
Revenue
Other Income (Interest) -
25 656
Transfers
Total revenue
Description
Annual Budget Income (R’000)
YTD Budget Income (R’000)
YTD Income (R‘000)
Revenue
Other Income (Interest) -
52 248
Transfers
Total revenue

25. USAF 2016/17 Quarter 2 Budget Performance - Expenditure
Description
Annual Budget
Quarter 2 Budget (R’000)
Actual Q2 Spending (R‘000)
Quarter 2 Variances (R‘000)
Quarter % Spent
Broadband Infrastructure
32 634
9 600 - 0%
STB Subsidies for BDM
172%
Rapid Deployment & Connectivity
18 776
4 694
2 804
1 890
60%
Bank Charges & Audit Fees
996
249
907
-658
364%
Project Costs
2 750
688
1 207
-519
175%
Total
159%

26. USAF 2016/17 Quarter 2 YTD Budget Performance - Expenditure
Description
Annual Budget
Quarter YTD Budget (R’000)
Actual YTD Spending (R‘000)
Quarter YTD Variances (R‘000)
Quarter YTD % Spent
Broadband Infrastructure
32 634
16 000 - 0%
STB Subsidies for BDM
151%
Rapid Deployment & Connectivity
18 776
9 388
5 391
3 997
57%
Bank Charges & Audit Fees
996
498
1 203
-705
242%
Project Costs
2 750
1 376
1 443
-67
105%
Total
141%

27. USAF 2016/17 Quarter 2 Budget Performance - Expenditure

28. THANK YOU 