1. A/DG: Major-General (Ret). L. Z. Make 15 October 2015
PRESENTATION TO PCD&MV DEPARTMENT OF MILITARY VETERANS ANNUAL REPORT FOR 2014/15
A/DG: Major-General (Ret). L. Z. Make
15 October 2015
Together We Move South Africa Forward

2. Presentation outline Aim of the presentation General Information
The Mandate of the Department
DMV Overall Performance Overview for 2014/15FY
Performance per Programme
DMV`s Overall Significant Achievements for 2014/15FY
Performance against Selected Indicators
DMV`s Contribution to the Executive Authority’s (EAs)Priorities
Human Resource Management
Financial Information : Appropriation Statement
AGSA Audit Findings
Mitigation Strategy of AGSA Audit Findings
Decision required
Conclusion

3. Aim of the presentation
To table the Department of Military Veterans Annual performance Report for the period ending 31 March 2015.

4. General Information Vision Mission Values
"A dignified, unified, empowered and self-sufficient military veterans’ community”
Mission
“To facilitate delivery and co-ordinate all activities that recognize and entrench the restoration of dignity and appreciation of the contribution of Military Veterans to our freedom and Nation Building”.
Values
Service Charter that Underpins the Delivery of Services to Military Veterans
We, as Department, pledge to:
Manage and administer the affairs of Military Veterans with dignity and compassion and to ensure that the unique needs of all Military Veterans are provided for.
This will be achieved through overall coordination and facilitation of the activities of Government and that of the private sector to ensure the provision of coherent assistance to all Military Veterans.

5. The Mandate of the Department
Legislative mandate derived from the Military Veterans Act 18 of 2011: To provide national policy and standards on socio-economic support to military veterans and their dependants, including benefits and entitlements to help realise a dignified, unified, empowered and self-sufficient community of military veterans

6. DMV`s OVERALL PERFORMANCE OVERVIEW
FOR 2014/15FY

7. DMV`s Overall Performance Overview
The Department committed itself to achieve 25 targeted performance indicators during the 2014/15 Financial Year (FY).
Of the 25 targeted performance indicators, 17 targets were achieved which constitutes 68 % of the overall achievement for the 2014/15FY.
Departmental Performance = No. of targets achieved x 100
Total no of targets set
= 17 x 100 25
= 68%
The department achieved 68% on the overall performance for the 2014/15FY.
Planned targets
Targets achieved
Targets not achieved
25 of 25 APP targets 17 08

8. PERFORMANCE PER PROGRAMME
Programme 1: Administration
Programme 2: SES
Programme 3: ESM

9. Programme 1: Administration
The programme had 14 performance targets indicators planned for implementation during the 2014/15FY.
A total of 11 planned targets were achieved, which constitutes 79% achievement of the targeted performance compared to the performance commitments set for the 2014/15FY.
Departmental Performance = No. of targets achieved x 100
Total no of targets set
= 11 x 100 14
= 79%
The department achieved 79% performance on Administration programme for the 2014/15FY.
Planned targets
Targets achieved
Targets not achieved
14 APP targets 11 03

10. Programme 2: SES
The programme had 5 performance targets indicators planned for implementation during the 2014/15FY.
A total of three (3) planned targets were achieved, which constitute 60% achievement of the targeted performance compared to the performance commitments set for the 2014/15FY.
Departmental Performance = No. of targets achieved x 100
Total no of targets set
= 3 x 100 5
=60%
The department achieved 60% performance on SES programme for the 2014/15FY.
Planned targets
Targets achieved
Targets not achieved
05 APP targets 03 02

11. Departmental Performance = No. of targets achieved x 100
Programme 3: ESM
The programme had six (6) performance targets planned for implementation during 2014/15FY.
A total of three (03) planned targets were achieved, which constitutes 50% achievement of the targeted performance compared to the performance commitments set for the 2014/15FY.
Departmental Performance = No. of targets achieved x 100
Total no of targets set
= 3 x 100 6
= 50%
The department achieved 50% performance on ESM programme for the 2014/15FY.
Planned targets
Targets achieved
Targets not achieved
06 APP targets 03

12. DMV`s OVERALL SIGNIFICANT ACHIEVEMENT FOR 2014/15FY

13. DMV`s Significant Achievements
The following are key service delivery strategic issues achieved during the 2014/15FY:
693 MVs have since been enabled to access Social Relief of Distress (SRD) through the Department of Social Development’s SASSA programme;
6 795 MVs have been provided with access to healthcare;
1 803 MVs were provided with healthcare cards;
645 MVs and their dependants were provided with bursaries;
Nine (9) houses belonging to MVs were rescued from repossession by the Banks in line with the provisions of the Regulations;
2 450 MVs accessed training and skills;
97 cooperatives for MVs were registered;
1 700 military veterans accessed job opportunities;
A total of R31.9 million was transferred by DMV to DHS as Top-Up Funds for construction of houses;
During the period under review two (2) MVs memorial plaques were unveiled;
107 private sector companies entered into partnership with the DMV;
Military Veterans were listed on the National Military Veterans Database of which personal files were updated;
1 343 MVs accessed Counselling Services; and
160 burial support were provided to deserving MVs.

14. PERFORMANCE AGAINST SELECTED INDICATORS

15. DMV PERFORMANCE AGAINST SELECTED PERFORMANCE INDICATORS AND TARGETS
Actual
Achievement
2013/2014
Planned
Target
2014/2015
Deviation from
planned target to Actual Achievement
for 2014/2015
Comment on deviations
PPI:201: Total number of deserving military veterans with access to healthcare services per year
4 719
7 000
6 795
205
The department will in the next financial year promote a culture of annual medical check-ups in the MVs` sector.
PPI:203: Number of deserving military veterans with decent housing per year 2
1 000
A list of approved beneficiaries has been approved to pave way for houses to be built.
The department depends on DHs for the building of houses.
Nine (9) houses belonging to MVs were rescued from repossession by the Banks in line with the provisions of the MVB Regulations.
A total of R31.9 million as Top-Up Funds for housing was transferred to Provincial DHS for the construction houses for MVs.
PPI:302: Number of deserving military veterans to access training and skills development per year
1 270
2 500
2 450 50
Requests for additional contractors and staffing of provincial offices has been
submitted.
PPI:304: Number of military veterans’ memorial sites erected per year
N/A
Plan to request a business breakfast meeting with private business to discuss job opportunities for MVs.
PPI:306: Total number of private sector companies and organs of state in partnership with the Department of Military Veterans 10
107
+97

16. DMV`s CONTRIBUTION TO THE EXECUTIVE AUTHORITY’s (EAs) PRIORITIES

17. DMV CONTRIBUTION TO THE EXECUTIVE AUTHORITY’S PRIORITIES (1)
EA Priorities
Progress as at 31 March 2015
Priority 1: Ensuring a fully functional Department of Military Veterans with an independent vote, systems and processes
The DMV continues to grow in the mandate of military veterans’ affairs, and become fully-fledged department with a staff complement of one hundred and thirty one (131) by 31 March 2015, that is located at National and Provincial levels, its own transversal and accounting systems and office accommodation. The recorded achievement is aligned to Outcome 12
Priority 2: Provision of immediate Social Relief of Distress (SRD) to the most vulnerable of the Military Veterans.
On the issue of the SRD, the DMV collaborated with SASSA in the provision of this Benefit to MVs who are eligible for such support. The DMV provided 693 MVs during the 2014/15FY through the DSD’s SASSA programme. The recorded achievement is aligned to Outcome 7.

18. DMV CONTRIBUTION TO THE EXECUTIVE AUTHORITY’S PRIORITIES (2)
EA Priorities
Progress as at 31 March 2015
Priority 3: Provision, subject to availability of resources, comprehensive support services to military
veterans and where applicable, to their dependants, but not limited to:
Access to health support
6 795 MVs were provided with healthcare services;
1 803 MVs were provided with healthcare cards addition;
1 343 MVs accessed counselling services;
Honouring and memorialising Military Veterans
The DMV was the frontrunner for the 50th commemoration of the execution of the first Mkhonto we Sizwe cadres and also participated in the annual commemorations for fallen soldiers during WW 1 and Wreath Laying Ceremonies at various sites across the country.
Education, training and skills development
645 bursaries were provided for MVs;
2 450 MVs trained and skilled in solar geyser, sewing, welding, driving, construction and maintenance, business skills variety of short courses, were workshopped by ARC and were later on provided with fixed term contracts.
Facilitation of employment placement
1 700 MVs accessed job opportunities on security, ARC contract workers, construction and maintenance, appointed at the DMV Head Office, Permanently appointed by the Mogale City Municipality and also SANMVA.
Facilitation of or advice on business opportunities
97 co-operatives were registered.
Housing
R31.9 million transferred to the DHS as Top-Up Funding for the constructions of houses for MVs and 9 houses belonging to MVs were rescued from repossession.
Burial Support
160 burial support were provided to deserving MVs.
Pension
A draft pension framework has been finalized.

19. DMV CONTRIBUTION TO THE EXECUTIVE AUTHORITY’S PRIORITIES (3)
EA Priorities
Progress as at 31 March 2015
Priority 4: Promotion of empowerment programmes for and of Military Veterans
78 new service providers providing skills programmes for MVs were secured and 24 new MVs were registered as service providers on the DMV SCM database.
Priority 5:Promotion of heritage of Military Veterans and memorialising and honouring Military Veterans
As part of memorialisation and honouring, the department participated in the following events:
50th commemoration of the execution of the first Mkonto we Sizwe cadres, namely Mini, Khayingo and Mkaba;
25th commemoration of the Anniversary of the slaying of Cde Anton Fransch in a battle with apartheid police in Athlone in 1989;
The annual commemorations for fallen soldiers of World War 1 and Wreath Laying Ceremonies at various sites across the country; and
1st anniversary of the passing away of the Dr. Nelson Mandela.
Priority 6 : Promote empowerment programmes for and of Military Veterans:
604 MVs were trained in sewing, welding, driving and the solar geyser training project and 47 MVs attended training courses organized by the DTI.
162 MVs’ have provided evidence of registration of co-operatives and a draft plan was developed for visiting the provinces. This was done in order to provide training for MVs who have shown interest in registering their cooperatives.
A list of 850 MVs and their dependants was made available to the service provider to conduct shortlisting and submit project plan for their training in various skills programmes.
Priority 7: Maintenance of a credible and secure
national Military Veterans database
To date personal files for MVs were updated out of records. The process to verify the bona fides of MVs who neither demobilised nor integrated in 1994 to facilitate inclusion of their names in the database is in progress. The verification process is ongoing.
Priority 8: Implementation of a high impact communication and marketing strategy and plan
In embracing the social media strategy, an integrated communication strategy and plan was rolled out during the 2014/15FY. Through the newly established website, social platforms such as YouTube, Facebook, and Twitter, the Honour Magazine; Utilisation of mainstream media such as adverts and editorial platforms on the SABC TV and radio stations; community based media; use of national and regional print media; steady yet significant progress has been achieved.

20. HUMAN RESOURCE MANAGEMENT

21. Employment and Vacancies by programme as at 31 March 2015.
Number of posts on approved
establishment
Number of posts filled
Vacancy Rate
Number of employees
additional to the
1: Administration
103 79
23% 39
2: Socio-Economic Support (SES) 20 0% 19
3: Empowerment and Stakeholder Management (ESM) 46 32
30% 3
Total
169
131
22% 61

22. Employment Equity as at 31 March 2015.
Occupational category
Male
Female
Total
African
Coloured
Indian
White
Legislators, senior officials
and managers 38 3 1 22 2 67
Professionals 15 16 33
Technicians and associate
professionals
Clerks 13 31
Service and sales workers
Skilled agriculture and
fishery workers
Craft and related trades
workers
Plant and machine
operators and assemblers
Elementary occupations 69 4 51
131
Employees with
disabilities

23. FINANCIAL INFORMATION: APPROPRIATION
STATEMENT

24. Appropriation statement
Programme Name
2014/2015
2013/2014
Final Appropriation
Actual
Expenditure
(Over)/ Under Expenditure
Expenditure As % Of Final Appropriation
(Over)/Under Expenditure
R’000 %
Programme 1: Administration
15 543
90.2%
77 768
75 004
Programme 2: Socio-Economic Support (SES)
10 380
96.1%
58 384
63 817
Programme 3: Empowerment and Stakeholder Management (ESM)
79 973
63 956
16 017
80.0%
76 458
29 781
46 677
Total
41 940
91.7%

25. Appropriation statement
Economic classification
2014/2015
2013/2014
Final Appropriation
Actual
Expenditure
(Over)/ Under Expenditure
Expenditure As % Of Final Appropriation
(Over)/Under Expenditure
R’000 %
Compensation of Employees
90 575
83 588
6 987
92.3%
80 603
45 000
35 603
Goods and Services
51.8%
Transfers and Subsidies
( )
212%
Payment of Capital ASSETS
11 350
4 898
6 452
43.2%
10 000
2 917
7 083
Total
41 940
91.7%

26. AGSA AUDIT FINDINGS FOR PERIOD
ENDING 31 MARCH 2015

27. AGSA Audit Findings
During the 2014/15FY the department received a qualified audit opinion as expressed by the Auditor – General of South Africa (AGSA)which shows an improvement as compared to the previous financial year. This is a clear shift from a Disclaimer during the 2013/14FY to a Qualification audit opinion

28. AGSA Audit Findings
During the 2014/15FY the AGSA highlighted the following key aspects for considerations:
AFS
Movable tangible capital assets
Transfer payments
Predetermined objectives
Measurability of indicators
Reliability of reported performance information
Compliance
Annual Financial Statements, performance and annual reports
Budgets
Expenditure management
Asset management
Procurement and contract management
HR Management
Internal audit
Consequence management
Internal control
Leadership
Financial and performance management
Governance

29. Together We Move South Africa Forward
Repeat Audit Findings
Repeat findings
Auditable area
2013/14
2014/15
AOPI 
Goods &services HR
Cash & Cash equivalents
Procurement & contracts
Accruals
Irregular Expenditure, FWE
Capital and Minor Assets
Scope limitation
Opening balances
Misclassifications
Policy register
Basis for AFS
Internal Control Deficiency
Related Party transactions IA
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30. Together We Move South Africa Forward
Mitigation strategies to resolve audit outcome
Internal Control
Audit Outcome
Status - Mitigation Strategies
Capital and minor assets
Assets procured not traced to the asset register – limitation of assets
Asset management team appointed to develop a comprehensive asset register.
(Operation excellence – OCA)
SCM – Procurement process
Inadequate procurement process (non-compliance, irregular expenditure)
LOGIS system not in use.
GS: Limitation of scope-filing system
Commitments & Accruals.
SCM policy (draft)
Procurement plan – not submitted
1)Procurement of an electronic procurement management system, E-procurement system
2) Training of SCM officials
3) Procurement plan submission 2015/16FY
4) Operation excellence – OCA
5) Accrual listing developed.
6) Review SCM and Finance delegations.
Transfer Payment
Non-compliance, overstatement, incorrect classification
Regular monitoring– assurance certificates, quarterly reports requested monthly.
Payments not settled within 30days
Payments not settled within 30 days
Appointment of a service providers to set up and improve internal control systems (Operation excellence - OCA)
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31. Together We Move South Africa Forward
Mitigation strategies to resolve audit outcome
Internal Control
Audit Outcome
Status - Mitigation Strategies
Finance
Misclassifications
Underspending of funds
Absence of approved policies and procedure manuals
Implementation of polices and SOP
Misclassifications are reassessed and journalized for corrections. Continuous spot checks are done.
SOP for journals developed. Prior year errors corrected in AFS.
AOPI
Relevance and reliability.
No authorisation letters.
No reconciliations performed (service registers/healthcare registers).
Inadequate evidence for reported performance information.
Limitation of scope for PPI.
Inaccuracies in the reported information.
Invalid reported targets.
Absence of SOP
1) Transfers to DHS and NSFAS -engagements are underway with NT, and NSFAS to obtain the required written assurance/compliance certificates. Ongoing meetings with NSFAS.
2) Filing cabinets were installed.
3) List of MVs who accessed healthcare is available.
4)Reconciliations is performed regularly.
5)An automated system to be introduced.
Together We Move South Africa Forward

32. Together We Move South Africa Forward
Mitigation strategies to resolve audit outcome
Internal Control
Audit Outcome
Status - Mitigation Strategies
AOPI
PPI-306, 302, 303: Database provided not agreeing with reported targets.
Differences in reported information-level of credibility of database.
Delay in submission of Quarterly Performance reports to NT,DPME.
Coordinators not appointed.
1) The indicator will be reviewed to ensure that it meets the SMART principle.
2) Indicator was removed as reflected in the 2015/16FY APP.
3) Draft policy document will be approved in Q2 2015/16FY.
4) Delay in submission of QR reports addressed.
Together We Move South Africa Forward

33. Conclusion
This performance report shows how the department has delivered 68% on its planned targets during the 2014/15FY.

34. Together We Move South Africa Forward
Thank you
Together We Move South Africa Forward