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

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

3. 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.

4. 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!

5. 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?

6. Accountability Cycle for Performance Information

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

8. 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

9. 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

10. Functions and Powers of NT

11. NT Support to Stakeholders

12. Annual Report

13. 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.

14. Contents of Annual Reports

15. Contents of Annual Reports

16. 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?

17. 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

18. Governance Information

19. Governance Information

20. 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

21. 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

22. 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

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

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

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

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

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

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

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

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

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

32. end