1. Portfolio Committee on Telecommunications and Postal Services
Presentation to the
Portfolio Committee on Telecommunications and Postal Services
USAASA and USAF Quarter 1 Performance Reports
23 August 2016
“Universal Access and Service to ICT for All”

2. USAASA Vision, Mission & Strategic Goals
Universal Access and Service to ICT for All
Mission
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
Strategic Goals
Centre of Excellence on Universal Service and Access in South Africa
Positioning the Agency as a focal point for universal service and access to ICT
Vision
Mission
Strategic Goals

3. USAASA Q1 Performance Human Resources Performance Outcomes:
Achieved targets
None
Targets not Achieved
Implement the organisational Work Skills Plan (WSP) to address identified skills gaps. Q1 Progress: WSP submitted to MICTSETA - Training scheduled for July and August 2016
Review and implement Resourcing and Deployment policy
Q1 Progress: Draft Resourcing and Deployment policy developed
Develop and approve an HR Service Level Agreement (SLA)
Q1 Progress: Draft SLA developed
Legends
Achieved
Not Achieved
Information Technology Performance Outcomes:
Achieved targets
Monitor and report on percentage availability of business systems: 99% availability of business systems achieved
Targets not Achieved
ERP system go-live. Q1 Progress: Project halted at the Final Preparation Phase due to delays experienced with the OD project
Capacitation of IT Human Resources through recruitment and Training of SAP Critical skills. Q1 Progress: This is pending the finalisation of the OD project. Internship programme extended for ERP resource
Revise and approve a service Level Agreement (SLA) for IT Services. Q1 Progress: SLA developed in Q1. To be submitted for approval in Q2

4. USAASA Q1 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
Q1 Progress: Terms of reference to invite service providers to conduct impact assessments were developed in Q1. Procurement processes and impact assessments to commence in Q2

5. USAASA Q1 Performance Stakeholder Engagement Performance Outcomes:
Achieved targets
Implementation of the Stakeholder Engagement Strategy to promote awareness about the Agency
Targets not Achieved
Develop an Integrated Communications Policy for approval by the Board
Q1 Progress: Draft Integrated Communications Policy submitted for EXCO inputs. Policy to be submitted for Board approval in Q2
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

6. Summary of USAASA 2016/17 Q1 Performance
USAASA Performance Outcomes:
4 of the 12 planned Q1 targets were achieved, being 33% of the total planned targets
8 of the 12 planned Q1 targets were not achieved, being 67% of the total planned targets

7. USAASA Mitigations: Q1 Performance
Unmet Quarter 1 Targets
Q1 Progress Update
Reasons for Deviations
Action Plans
Implement the organisational Work Skills Plan (WSP) to address identified skills gaps
The WSP was developed and submitted to MICTSETA by 30 April 2016
Services could not be sourced in time due to challenges related to introduction of Centralised Supplier Database
Implementation of training was scheduled to commence in July 2016 and will continue in the 2nd quarter of 2016/17
Review and implement Resourcing and Deployment policy
Draft Resourcing and Deployment policy was developed in Q1
The policy was still in a draft format as the end of the quarter
Draft Resourcing and Deployment policy to be circulated for EXCO and REMCO inputs in Q2 prior to submission for Board approval
Develop and approve an HR Service Level Agreement (SLA)
HR Service Level Agreement was developed in Q1
The SLA was still in a draft format as the end of the quarter
SLA reviews by EXCO and REMCO and approvals are planned for Q2
ERP system go-live
ERP Project was at the Realisation Phase in Q1
The ERP project could not enter final preparation phase due to Organisational Development (OD) project delays
It is estimated that the revised Go-Live date will be during Q4 of 2016/17. This is dependent on finalisation of the OD structure

8. USAASA Mitigations: Q1 Performance
Unmet Quarter 1 Targets
Q1 Progress Update
Reasons for Deviations
Action Plans
Capacitation of IT Human Resources through recruitment and Training of SAP Critical skills
Internship programme extended for 6 months for the resource allocated to the ERP project
Finalisation of the OD structure is required to enable the finalisation of the ERP project
-Capacitation of IT Human Resources through recruitment is to be considered as part of OD processes
Revise and approve a Service Level Agreement (SLA) for IT Services
The SLA for IT services was developed in Q1
No IT Steering committee was held in Q1 (scheduled meeting was postponed)
- Tabling of SLA to IT Steering Committee was scheduled for 05 July and approval is to be finalised in Q2
Impact assessments in three (3) identified USAF subsidised local municipal areas
Terms of reference and a submission for sourcing external resources was prepared and pending approval as at the end of the quarter
ICT impact assessments are new to the Agency and a need to source external expertise was identified due to inadequate internal capacity
- Sourcing of external capacity and project implementation is envisaged to commence in the 2nd quarter of 2016/17
Develop an Integrated Communications Policy for approval by the Board
The draft Integrated Communications Policy was developed and submitted for EXCO inputs in Q1
The Integrated Communications Policy was still in draft format as at 30 June 2016
- The draft policy will be submitted for Board approval in Q2

9. USAASA 2016/17 Quarter 1 Budget Performance - Revenue
Description
Budget Income (R’000)
Budget YTD Income (R’000)
Income (R‘000)
Revenue
Other Income -Interest, levies & tenders -
3 066
Transfers
USAASA Operations
69 045
17 261
Total revenue
20 327

10. USAASA 2016/17 Quarter 1 Budget Performance - Expenditure
Description
Annual Budget (R’000)
Q1 Budget (R’000)
Actual Spending (R‘000)
Quarter Variances
(R‘000)
Quarter % Spent
Expenditure
Compensation of employees
43 713
10 928
9 420
1 508
86%
Goods and services
24 218
5 716
4 080
1 636
71.4%
Depreciation -
689
-689
Capex
1 114
617
139
478
22.5%
Total
69 045
17 261
14 328
2 933
83%

11. USAASA 2016/17 Quarter 1 Budget Performance - Expenditure

12. USAF Quarter 1 Performance Report 2016/2017

13. USAF Q1 Performance Targets not Achieved
50% Backhaul developed / upgraded for Mhlontlo and King Sabata Dalindyebo local municipalities
Q1 Progress: Backhaul is developed by licensed operator which was yet to be appointed as at 30 June 2016
Broadband network connectivity maintained in 127 schools, 93 clinics and 38 traditional ICT centres
Q1 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
Q1 Progress: out of the targeted 14, 615 STBs and antennae were installed in Quarter 1
USAF Performance Outcomes:
Achieved targets
None
Targets not Achieved
Environmental rights application completed for Mhlontlo and King Sabata Dalindyebo local municipalities in the OR Tambo District
Q1 Progress: Procurement processes for the appointment of a licensed operator were initiated but not finalised in Q1
Legends
Achieved
Not Achieved 13

14. Summary of USAF 2016/2017 Q1 Performance
USAF Operations Performance Outcomes:
0 of the 4 planned Q1 targets were achieved, being 0% of the total planned targets
4 of the 4 planned Q1 targets were not achieved, being 100% of the total planned targets

15. USAF Mitigations: Q1 Performance
Unmet Quarter 1 Targets
Q1 Progress Update
Reasons for Deviations
Action Plans
Environmental rights application completed for the Mhlontlo and King Sabata Dalindyebo local municipalities in OR Tambo District
The Agency has enlisted the services of BBI and Sentech to fast track implementation e.g. Sentech sites will be used; BBI will prepare its PoPs in the areas for use
This should drastically reduce the need for EIA application
Appointment of licensed operator was not finalised by 30 June 2016
- Appointment of licensed operator is envisaged to be finalised in Quarter 2 
50% Backhaul developed / upgraded for Mhlontlo and King Sabata Dalindyebo local municipalities
Backhaul is developed by a licensed operator which was yet to be appointed at the end of the quarter

16. USAF Mitigations: Q1 Performance
Unmet Quarter 1 Targets
Q1 Progress Update
Reasons for Deviations
Action Plans
Broadband network connectivity maintained in 127 schools, 93 clinics and 38 traditional ICT centres
Usage at 98 of the 258 connected sites was monitored in Q1
160 sites do not have remote monitoring access facility and the service providers concerned have been engaged by the Agency
- Monitoring and Evaluation proposal from CSIR has been resuscitated and will be tabled before the Bid Adjudication Committee for consideration
Set-Top Boxes & antennas procured and installed for qualifying needy TV-owning households
The focus has been in the SKA area
A total of registrations have taken place in the SKA. To date installations have been allocated to the installers with completed in Q1
Communication on the project is the responsibility of the Department of Communications (DoC)
- The DoC has put in place a door-to-door registration campaign to speed up registrations. Funding for such has been factored into the 2017/18 databases of the DoC

17. USAF 2016/17 Quarter 1 Budget Performance – Revenue
Description
Annual Budget Income (R’000)
Quarter 1 Budget Income (R’000)
Income (R‘000)
Quarter 1 Variances (R‘000)
Revenue
Other Income (Interest) -
26 592
Transfers
644 540
Total revenue

18. USAF 2016/17 Quarter 1 Budget Performance - Expenditure
Description
Annual
Budget
Quarter 1 Budget (R’000)
Actual Q1 Spending (R‘000)
Quarter 1 Variances
(R‘000)
Quarter 1 % Spent
Broadband Infrastructure
32 634
6 400
6 400 0%
STB Subsidies for BDM
589 384
147 346
127%
Rapid Deployment & Connectivity
18 776
4 694 
2 663
2 031
56.7%
Bank Charges & Audit Fees
996
249
296
-47
119%
Project Costs
2 750
688
236
452
34.3%
Total
30 953

19. USAF 2016/17 Quarter 1 Budget Performance - Expenditure

20. USAASA Focus Areas for Quarter 2 of 2016/17
USAASA focus areas for Quarter 2 are to include the following:
Tracking the implementation of action plans to ensure all delayed Quarter 1 targets are met in Quarter 2
Development and implementation of action plans to address 2015/16 Auditor General findings
Review compliance of current targets to the SMART principle (Specific, Measurable, Attainable, Relevant and Timely) and follow due process to amend
Implementation of stringent strategies to improve organisational performance

21. THANK YOU 