DEFENCE%20SECRETARIAT%20Briefing%20to%20the%20Portfolio%20Committee%20on%20Defence

1
DEFENCE SECRETARIATBriefing to the Portfolio
Committee on Defence

• First Status Report FY05/06
• 23 AUGUST 2005

2
Aim

• To Brief Members Of The Portfolio Committee On
  Defence On The Status of The Defence Secretariat

3
Scope

• 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

4
SecDef 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.

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SecDef 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.

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SecDef 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.

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SecDef 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.

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Defence 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
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Strategic 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

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Defence Secretariat HR Status FY05/06
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Defence Secretariat HR Status FY05/06
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Defence Secretariat HR Status FY05/06
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Defence Secretariat HR Status FY05/06
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Defence Secretariat HR Status FY05/06
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Defence Secretariat HR Status FY05/06
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Defence Secretariat HR Status FY05/06
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Policy 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

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Organisational 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.
19
Core 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.

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Core 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.

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Core 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.

22
Strategic 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.

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CPP 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)

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CPP 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).

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CPP 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

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CPP 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).

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CPP 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.

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CPP 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.

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CPP Challenges (3)
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Risks

• 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.

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CPP Projects

• Project LOQUACIOUS
• Project Balanced Score Card (BSC)
• Project Departmental Organisational Structuring
  System (DOSS)
• Project NTUTHWANE

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Acquisition 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

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Organisational Structures
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Core 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

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HighlightsCD 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.

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HighlightsCD 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).

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HighlightsCD 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.

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HighlightsCD 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.

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HighlightsCD 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

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Financial Management Division

• (FMD)

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Strategic 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

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Finance Division
Chief Financial Officer
Office Manager
Secretary
Chief Director Budget Management
Chief Director Financial Services
Chief Director Accounting
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Strategy

• To translate Defence from a cashbased to an
  accrual-based financially managed institution
  (Possible risk in itself.)

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Highlights 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.

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Highlights 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 

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Highlights 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.

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Challenge 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.

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New 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.

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Defence 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

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Defence Inspectorate Organisational Structure
IG DOD
Office of the IG DOD
Directorate Performance Audit
Directorate Anti-Fraud
Sub-Directorate Resource Management
Directorate Regulatory Audit
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Highlights

• 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

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Highlights (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.

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Highlights (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.

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Highlights (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.

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Highlights (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.

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Divisional 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

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Divisional 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
•  

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Equal 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. 

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EOCD Organisational Structure
Chief Director EO
Support Elements
Directorate Policy Plans
Directorate Evaluation, Development Research
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Highlights

• 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.

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Highlights (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.

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Highlights (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.

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Highlights (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.

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EOCD 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.

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EOCD 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.

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Government 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.

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GITO 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
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Highlights

• 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.

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Challenge

• 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.

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Challenge (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.
•  

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Challenge (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.

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Challenges (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.

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Challenge (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. 

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DISCUSSION
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Adverse 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.
76
Adverse 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.
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Adverse 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.