Title: DEFENCE%20SECRETARIAT%20Briefing%20to%20the%20Portfolio%20Committee%20on%20Defence
1DEFENCE SECRETARIATBriefing to the Portfolio
Committee on Defence
- First Status Report FY05/06
- 23 AUGUST 2005
2Aim
- To Brief Members Of The Portfolio Committee On
Defence On The Status of The Defence Secretariat
3Scope
- Background
- Secretary for Defence Performance Agreement
- Organisational Structure
- Strategic Profile
- Overview of the Human Resource Picture
- Events and matters impacting on the Defence
Secretariat - Divisional Overviews
4SecDef Performance Agreement
- Specific Outputs Related To The Mod Outcomes
(In conjunction with the C SANDF)1. Defence
Against Aggression. Successful defence of South
Africas sovereignty and territorial integrity
against potential external military aggression or
threat.2. Promoting Peace and
Security.External deployment of forces that
enhances regional stability.3. Support to the
People.Support to other Departments when
requested, thereby contributing to the protection
and well-being of the countrys people and
resources.
5SecDef Performance Agreement (2)
- Priorities Identified By The Mod For Fy 05/061.
To provide support for Government diplomatic
drive/initiatives in Africa.2. To promote
regional security in the form of peace missions,
including post-conflict reconstruction.3. To
restore and maintain the conventional defence
capabilities of the SANDF.4. To systematically
reduce the SANDFs routine internal deployment to
zero by 1 Apr 2009.5. Address all critical
challenges to the implementation of Human
Resource (HR) Strategy 2010 as a matter of
priority.
6SecDef Performance Agreement (3a)
- Departmental Key Result Areas
- 1. Fulfill the defence commitments as ordered
by Government.2. Provide contingency-ready and
cost effective defence capabilities as specified
by approved policy.3. Administer the DOD within
the prescripts of the law and Government
policy.4. Assure sustainability, constantly
improving output quality and reducing the cost of
the DOD processes and the accounting thereof.
7SecDef Performance Agreement (3b)
- Departmental Key Result Areas5. Assure the
continued quality improvement of people,
equipment and facilities in the DOD.6. Assure
quality command and management information in the
DOD.7. Ensure that the Batho Pele principles
are institutionalised in the DOD.
8Defence Secretariat Organisational Structure
Secretary for Defence
Office of the SecDef incl Director Research
Analysis
Policy Planning Division
Acquisition Procurement Division
Defence Inspectorate
Finance Management Division
Government Information Technology Officer
(GITO)
Equal Opportunities Chief Directorate
Chief Directorate HR Policy Planning
9Strategic Profile
- Mission
- To effect civil control, the Secretary for
Defence provides specified managerial,
administrative and advisory services to the
Department of Defence, through the Defence
Secretariat - Vision
- Excellence in Defence Management and
Administration
10Defence Secretariat HR Status FY05/06
11Defence Secretariat HR Status FY05/06
12Defence Secretariat HR Status FY05/06
13Defence Secretariat HR Status FY05/06
14Defence Secretariat HR Status FY05/06
15Defence Secretariat HR Status FY05/06
16Defence Secretariat HR Status FY05/06
17Policy Planning Division
- Vision
- Excellence in defence policy and planning
- Mission
- To provide defence policy, strategy, plans and
instructions for the DOD that are fully aligned
with government policy and defence needs of South
Africa. This is achieved by means of a fully
representative team of appropriately skilled
people and technology
18Organisational Structure
Note DIMS moved back under command of CPP during
2005. Final guidelines will influence above
structure, ito HR Pol Plan, Int Pol and RA.
Total restructuring will follow. D Strat
envisaged.
19Core Objectives
- Divisional Direction. To provide strategic
direction to the Policy and Planning Division. - Strategic Management. To provide strategic
management services to the Head of Department
(HOD) through professional staff work in order to
enhance the effectiveness, efficiency, economy
and image of the DOD. - Defence Policy. To formulate and manage defence
policy in alignment with government policy.
20Core Objectives (2)
- HR Policy and Plan. To provide an accountable,
effective, efficient and economical DOD Human
Resource Policy and Planning service to meet
organisational and individual needs.
21Core Objectives
- Conventional Arms Control. To administer the
regulation and control over the manufacture and
transfer of conventional armaments in accordance
with the provisions of the Conventional Arms
Control Act as determined by the National
Conventional Arms Control Committee. - Legal Advice and Support. To provide efficient,
professional legal advice and support to the
Ministry and DOD. - Support Section. To provide administrative,
personnel management and logistical support to
Policy and Planning Division.
22Strategic Objectives
- CPPs Contribution to the Attainment of DOD
Strategic Objectives During FY 2005/06 to
FY2007/08. - Execution of Defence Commitments as ordered.
- The administration of the DOD within the
prescripts of the law and government policy. - Assurance of sustainability, continuous
improvement of output quality and reduction of
cost of DOD processes as well as the accounting
thereof. - The assurance of the continuous quality
improvement of people in the DOD.
23CPP Highlights
- Compilation, printing and approval of DOD
Strategic Business Plan for FY 2005/06 by
Parliament. - Compilation of Annual Reports FY 2004/05 for Pol
Plan, DefSec DOD. - Good progress on the Defence Update 2005 (White
Paper, Defence Review). - Projects NTUTHWANE and LOQUACIOUS were
approved by the PDSC and are progressing well
(Details provided later)
24CPP Highlights (2)
- The Certain Conventional Weapons Bill was
complete and submitted to Cabinet for approval. - Completed the drafting of the implementation
Instruction on the Prohibition of Anti-Personnel
Mines Prohibition Act. - DOD inputs to DFA wrt Arms Control Treaties and
Conventions. - Defence co-operation agreements with Governments
of Mali Tunisia (signed during May 05).
25CPP Highlights (3)
- Completion and admission on time of the
prescribed Annual Report to the United Nations
Arms Register. - Participated in the workshop on the UN Arms
Register held in Kenya to assist the UN in
introducing the Arms Register to other African
Countries. - Number of permits issued during first quarter
totaled 1293 compared to 1134 during previous
quarter
26CPP Highlights (4)
- Approval (5 May 2005) for unilateral
implementation of Mobility Exit Mechanism (MEM). - Mandating Committee Work Group on issues in the
Military Bargaining Council (MBC) has been
established. - New performance appraisal system for DOD
implemented. - First group of 105 military veterans reported as
CAT for Military Veterans Skills project funded
by National Skills Fund. - Annual Report for CEEAB presented to Min Def and
Portfolio Committee on Defence (PCD).
27CPP Challenges
- Additional workload associated with Instr 13/04
14/05, (Organisational Restructuring) especially
in the DIMS environment. - Multiple ad hoc tasks impact negatively on
achieving core objectives. - Insufficient policy advisor capacity to deal with
226 policy documents awaiting advisory services.
28CPP Challenges (2)
- Shortage of staff due to unfunded posts.
- Reconciling legal advice with consequences of
specific administrative actions in the DOD. - Input delays due to vetting process handled by
NIA. NCACC Chairperson to be requested to discuss
the matter with the Minister of Intelligence. - Inability of unions (esp NEHAWU) to co-operate in
PSAP Bargaining Council until issue of ARMSCOR
takeover of Naval Dockyard has been finalised.
29CPP Challenges (3)
30Risks
- Capacity (staffing) constraints and the need to
identify people with relevant skills. - Financial constraints wrt foreign obligations,
visits, and secondments. - Funds not available to staff critical vacancies
and staff turnover.
31CPP Projects
- Project LOQUACIOUS
- Project Balanced Score Card (BSC)
- Project Departmental Organisational Structuring
System (DOSS) - Project NTUTHWANE
32Acquisition Procurement Division
- Vision
- The Acquisition and Procurement Division (DAPD)
satisfies the Department of Defence materiel
requirements every time, on time - Mission
- DAPD is to direct and manage the acquisition and
procurement of the Department of Defence
specified operational and technological
requirements and services in a fair, timely,
innovative and cost effective manner, according
to approved policies in order to provide
appropriate, operationally effective materiel and
services, by means of a representative, motivated
and competent work force and to support
Departmental and Government initiatives
33Organisational Structures
34Core Objectives
- To satisfy armaments requirements of the Services
and Divisions according to force design and force
capability master plan in order for the DOD to
adequately respond to contingencies that may
arise - To pursue appropriate technologies
- To dispose and procure required equipment and
stocks - To ensure an efficient effective and economical
DAPD staffed structure within the constraints of
budget and available resources - To manage the Division in a cost effective manner
35HighlightsCD Acquisition
- Common Weapon System
- The POs presented their yearly business plans
and most have been approved. Some minor changes
still need to be completed and additional
guidelines for control were provided. Project
RADIATE.
36HighlightsCD Acquisition (2)
- Directorate Technology Development. The financial
management of technology development reflected a
good performance for the 2004/05 financial year
achieving 100 commitment and 91 cash flow of a
total of RM 303,6 budget allocation. The 2005/06
financial year started with a 63 commitment of
the RM 269,0 budget allocation (white book).
37HighlightsCD Acquisition (3)
- Directorate Naval Acquisition. Project WILLS.
S102, the second Type 209 Submarine for the SA
Navy was named and launched on 04 May 2005 in
Emden. Project SITRON, the successful firing of
the exocet anti-ship missile on 22 apr 05 was
historic in as much as the target, the
decommissioned Strike Craft SAS Shaka, was the
smallest target ever engaged by an exocet
missile.
38HighlightsCD Acquisition (4)
- Directorate of Army Acquisition. Project Vistula
evaluation of supply support platforms is
progressing according to plan. project Hoefyster
completed the evaluation of the Denel proposal
for a new generation Infantry Combat Vehicle, and
Project Warrior is currently completing its
project study report.
39HighlightsCD Acquisition (5)
- Directorate SAAF acquisition
- The following highlights occurred during this
period - DAFA involvement in the successful contract
negotiations for project CONTINENT. - The successful closure of the project WINCHESTER
project office in Borough (UK) and the relocation
of the project team in SA. - The re-location of the DOD team members on
Project FLANGE. The secondment of the Project
Officer of FLANGE to Armscor expires 30 June 05. - The approval of the project UKHOZI Tranche 3
decision by the Minister of Defence
40Financial Management Division
41Strategic Business Plan
- Vision
- The FMD is the source of FM excellence in the
DOD - MissionTo provide a cost-effective FM service to
the Minister of Defence, Secretary for Defence
and CSANDF within the evolving regulatory
framework bmo a professional, representative
civilian FM Corps and appropriate FM system
42Finance Division
Chief Financial Officer
Office Manager
Secretary
Chief Director Budget Management
Chief Director Financial Services
Chief Director Accounting
43Strategy
- To translate Defence from a cashbased to an
accrual-based financially managed institution
(Possible risk in itself.)
44Highlights for the Period
- The DOD submitted its financial statements for
the General Defence Account (GDA) and the Special
Defence Account (SDA) on 31 May 2005 to the
National Treasury (NT) and the Auditor-General
(A-G) in the format as required, including the
financial statements of the public entities under
the control of the DOD being Armscor and the
Castle Control Board. - The audit on the SDA has been completed and had
no qualifications.
45Highlights for the Period (2)
- The debtor administration system has successfully
been implemented during the reporting period and
the necessary training has been completed. The
implementation of this system will greatly
contribute to the management of departmental
debt. - Discussions are in process with SITA regarding
the enhancement of the FMS and PERSOL in order to
pay ST advances into bank accounts of DOD
members/officials. - The SDA budget was submitted and approved by the
Ministers of Defence and Finance on 25 April 2005
46Highlights for the Period (3)
- SCOPA. Replies on SCOPA Resolutions submitted to
SCOPA on 1 June 2005. Letter on SCOPA commitments
(signed by Sec Def) was sent to relevant members
for answers to be submitted by 15 July 2005
feedback to be given during 2nd quarter.
47Challenge for the FMD
- Delayed advertisement of vacant posts is
seriously hampering the achievement of equity
targets as per Equity Plan as well as staffing
targets as per Personnel Plan.
48New Emerging Risks
- Guidelines regarding the restructuring of the FMD
are awaited currently it is business as usual.
- The uncertainty regarding the restructuring is
adversely affecting the morale of staff it would
favour the DOD to have restructuring of the FMD
resolved as soon as possible. - Amendments to VAT legislation have a RM44,0
impact on the budget allocation to Armscor
starting from the FY 2005/06. - Funding of Rm788.064 for the A400M still to be
addressed during the current FY.
49Defence Inspectorate
- Vision
- The Defence Inspectorate is unrivalled world
leader in defence internal audits, inspections
and forensic investigations - Mission
- To provide independent and objective assurance
and consulting service through the provision of
quality internal audit, inspections and forensic
investigations in order to add value and improve
DOD operations
50Defence Inspectorate Organisational Structure
IG DOD
Office of the IG DOD
Directorate Performance Audit
Directorate Anti-Fraud
Sub-Directorate Resource Management
Directorate Regulatory Audit
51Highlights
- The newly appointed Inspector General (IG) DOD
and Chief Audit Executive for the Department of
Defence assumed duty on 1 Apr 05. - The Department of Defence Audit Committee was
re-established with two new members. The Audit
Committee now comprises of Dr D. Konar
Chairperson, Mr D.S. Molapo, Mr K.A. Ross, Ms J.
Jolie, Mr G.R. WiHhöft and Ms J. Kumbirai
52Highlights (3)
- The Defence Inspectorate assists the DOD in
accomplishing its objectives by bringing a
systematic, disciplined approach to evaluate and
improve the effectiveness of risk management,
control and governance processes. Their clients
include, inter alia, the Secretary for Defence,
Chief of the SANDF, Chiefs of Service, Heads of
Divisions as well as the Audit Committee who are
served by the provision of timely internal audit
reports of superior quality to enable corporate
decisions-making and to promote the achievement
of Departmental objectives.
53Highlights (4)
- DPA planned to cover 6 of the 25 identified risks
during the First Quarter of FY05/06. Of the
aforementioned the Directorate Performance Audit
(DPA) has audited and reported on 3 risks, this
represent 50 of the planned output, however,
during the said period a total of 19 risks were
selected of which 16 are currently in the process
of being investigated. The number of attitude
and opinion surveys planned for during the First
Quarter of FY05/06 was 19. The Centre for Effect
Analysis has completed 12, this represents 63 of
the planned output. The Centre for Effect
Analysis took on a total of 21 surveys of which 9
are currently still in process.
54Highlights (5)
- Directorate Regulatory Audit has planned 26
audits for the first quarter of which 27 audits
are in process and 13 have been completed. The
targets have been affected by the implementation
of COSO. Auditors are currently familiarising
themselves and normality will prevail as all of
them have submitted their first audits.
Preparations for external audits took longer than
it was planned for. This created a backlog in
planned audits.
55Highlights (6)
- The forensic investigation section is currently
involved in the fraud and corruption
investigation, which includes providing
assistance as regards the process of recourse and
monitoring of cases. The status is as follows - 53 cases were under investigation.
- 7 cases are being monitored.
- 28 cases were completed.
- 18 cases were referred to Military Police Agency
(MPA) and the National Prosecuting Agency.
56Divisional Risks
- The MOD GSBs inadequate procedures and
processes with respect to procurement and
maintenance of equipment that hinder the
achievement of the Defence Inspectorates
objectives
57Divisional Projects
- To implement the COSO framework for internal
audit reporting enhancing improved communication
with the Defence Inspectorates clients. - Implementing the TeamMate suite for electronic
working papers in order to improve the Defence
Inspectorates reports and analysis of findings - Guiding research and development regarding the
Effectiveness Model in order to provide valid
quantitative assessments of combat readiness -
58Equal Opportunities Chief Directorate
- Vision
- Our diverse and dynamic team is committed to
professional and credible Equal Opportunities
services based on human dignity and respect. - Mission
- To facilitate professional, credible and
efficient human resource intervention in the DOD
in order to meet the Equal Opportunities needs of
the organisation and individuals.
59EOCD Organisational Structure
Chief Director EO
Support Elements
Directorate Policy Plans
Directorate Evaluation, Development Research
60Highlights
- The Integrated Gender Mainstreaming Strategy. The
said strategy was presented to both the Secretary
for Defence and the Chief of the South African
National Defence Force. They were convinced of
the importance of the project and expressed their
support for the initiative. The strategy will
now be presented to the Plenary Defence Staff
Council (PDSC) in order to sensitise and inform
them on the matter.
61Highlights (2)
-
- Revision of the DOD Disability Policy The review
and renaming of the existing DOD Policy
Guidelines on the Prevention and Elimination of
Unfair Discrimination towards People with
Disabilities has been finalised. The said policy
will now be known as the DOD Disability Equity
Policy and will be presented to the Human
Resource Staff Council (HRSC) and PDSC in the
second quarter for approval.
62Highlights (3)
- The DOD Fast Tracking Assessment Board (FTAB)
The FTAB gave feedback to Services/Divisions on
the status of the Fast Tracking Implementation
Instruction and requested them to utilise the
instruction as a tool towards reaching their
transformation objectives.
63Highlights (3)
- EO and AA Awareness Seminars Participants on the
EO and AA Awareness Seminars responded positively
regarding the need to change their perceptions,
stereotypes and attitudes on equity matters.
Although discrimination, racism and affirmative
action are in general very emotional issues,
participants displayed a willingness to discuss
these issues openly and with the necessary
sensitivity.
64EOCD Risks
- The removal of Multi Skilled Functionaries
(MSFs) on level 4 who served as a force
multiplier for the EOCD has serious consequences
for the DOD. With a lack of dedicated EO
Advisors, no personnel are available to execute
EO functions such as the monitoring and
evaluation of EO activities, EO sensitisation of
DOD personnel and the implementation of the EO
and AA Policy on levels 3 and 4.
65EOCD Risks (2)
- Divisional and Service Chief limitations wrt
reaching and maintaining of equity. - The perception in the DOD that the EOCD is the
executing authority of the DOD EO and AA Policy.
66Government Information Technology Officer (GITO)
- Vision
- To ensure that defence information and ICT is
managed in a structured, yet clearly defined
manner in accordance with strategic defence
requirements as per an approved plan and robust
control mechanisms. - Mission
- That the office of the Defence GITO will serve
as the benchmark for all SA Government
departments in its ability to realise defence
objectives in support of national commitments and
initiatives.
67GITO Organisational Structure
GITO
Secretary
PA / PSO
DEISA
Secretary
D/Dir ICS
D/Dir ICS Pol
A/Dir ICT Supt
A/Dir ICS SD
A/Dir Info/KM
A/Dir Pol Cntrl
Vacant Posts
Filled Posts
68Highlights
- FY 04/05
- The GITO function only established 1 Jan 05.
- No highlights for this period.
- FY 05/06
- Approval of the GITO structure.
- Approval of the Defence Enterprise Information
System (DEIS) Framework.
69Challenge
- Review and refinement of the DOD Info Strat. The
DOD Info Strat is to be aligned with the DOD
Strategy which must still be developed during FY
05/06 (refer to Accounting Officers Planning and
Budgeting Guidelines) If not aligned the required
strategic direction will not be provided for DOD
Information Resources. This will negate the CMIS
Divs ability to support and enable
transformation objectives.
70Challenge (2)
- Participation in Process. The weak or
non-participation of stakeholders and
role-players in the design and execution of the
CMIS Policy Development and Maintenance process.
This could either be due to the lack of interest
or due to that, the Service and Divisional
Chiefs, to support this project, task no internal
responsible entity. -
71Challenge (3)
- Responsibility. The practical influence (either
positive or negative) of the continuous change
or re-design of the current structures in the
SANDF. The responsibility about who is the
driver or manager for Policy Development within
the particular structure (Service/Division) is
shift around and no perpetual participation could
be obtained. These abovementioned functions
seemed to be over and above tasks and not
attended to as a priority objective or outcome of
their core function.
72Challenges (4)
- Functional Knowledge. The functional knowledge
of policy development in the DOD and the
difficult terminology in the Information and
Communication Technology (ICT) field hamper the
positive inputs and actions by other stakeholders
and role-players.
73Challenge (5)
-
- Non-compliance. The non-compliance to the
identified CMIS regulatory framework and
prescribed DOD Policy Development Process and
Procedures. The execution of the processes as
laid down in the DODI and JDP on the development,
promulgation and maintenance of policy must be
followed as prescribed. No short cut will be
allowed to compile and review CMIS policy and
directives.
74DISCUSSION
75Adverse Audit Findings
GDA 01/02 02/03 03/04 04/05
Departmental Revenue EOM EOM Q Q
Summary of Findings
Completeness of revenue could not be confirmed due to Insufficient independent management reconciliation / reviews Non-compliance with policies procedures
Action Plans
Revenue Management Forum under control of Director Budgeting established on 1 Feb 05. DOD busy benchmarking with National Treasury and other government departments on tariff management. Level 4 commanders are continuously trained to comply with the Revenue Management DODI by FMD (CD Acc). DOD is budgeting for revenue other than the Vote, focusing on disposal of equipment. Improvement objective for 1 Apr 06 is to include all other income, e.g. flights against repayment.
76Adverse Audit Findings .
GDA 01/02 02/03 03/04 04/05
Receivables - - - Q
Summary of Findings
Validity and accuracy of amount could not be confirmed. Original amounts of debtors were amended when new FMS Debtors Sub-System was implemented. Weaknesses in internal controls over management of receivables.
Action Plans
Department in the process of addressing the system error and the adjustments will be followed up in the next audit cycle.
77Adverse Audit Findings .
GDA 01/02 02/03 03/04 04/05
Irregularities and Losses - - Q Q
Summary of Findings
Inconsistent application of policies and procedures resulting in Internal control weaknesses and Inability to verify completeness accuracy of the amount disclosed
Action Plans
DOD Instruction is in the process of being reviewed to enhance accountability. Monthly forum has been established for cash losses w.e.f. 1 Jan 05. A computerized loss control process being investigated to ensure complete reporting. Staff visits are conducted by FMD and C Log to ensure that losses are properly administrated.