Strategic Plan and Annual Performance Plan

Parliamentary Portfolio Committee on Telecommunications and Postal Services

21 April 2015

Contents

2

Overview

3

SITA has developed a transformation strategy to make the agency work.

The SITA Annual Performance Plan (APP) is aligned to SITA’s 2014-2019 strategic plan.

Accountability and good governance are at the core of SITA’s operations.

Restoring our customers confidence in the agency is one of our key strategic drivers, under the general banner of customer centricity.

SITA continues to strive to improve services delivered to customers so that the depth and breadth of operational grows and ultimately value for government and citizens is enhanced.

Transformation and modernisation of our procurement processes is vital.

Numerous critical flagship projects such as e-Government and e-Cabinet are gaining traction

SITA’s bandwidth has been upgraded by 43 percent resulting in significant cost saving to customers

SITA’S core network infrastructure is being upgraded and refreshed to deliver further benefits to customers and enable e-Government roll out

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Strategic Priorities

▪ Integrate and automate finance and procurement process

▪ Develop transparency on costs of services provided

▪ Develop and implement customer engagement model, implement measures to reach desired state

▪ Procure goods and services at a lower cost than any single department could on their own, within similar time frames

▪ Deliver to customers through an efficient and service-oriented procurement process

▪ Leverage economies of scale to provide core IT services (e.g. infrastructure & security) at market-competitive rates and productivity levels

▪ Provide advisory services and architecture standards and ICT governance as well as transversal capabilities

▪ Act as a thought-leader to customers to proactively identify and deliver on technology needs

Value-added procurement

A

Core IT services

B

Electronic Government

▪ Be the driving force behind the continued digitization of public sector resources in South Africa

▪ Set and drive the e-Government agenda for the country and drive the modernization of the public sector

▪ Build a customer centric organisation, with motivated employees, an open and trusting culture that fully utilises employee capabilities

Building a healthy

organisation

C

Business Enablers

D

Cybersecurity▪ Build an effective and robust information Security environment within the

organization

▪ Act as a leading Agency in defending South African Government information Assets (Securing South African Cyber Space)

Strategic Objectives, Indicators and Annual Targets

5

Strategic Objectives Performance Indicators Annual Targets

Review and improve SCM turnaround times performance

% of tender awards completed within the targeted turnaround time

85% of tender awards completed within the targeted turnaround time

% of tender contracting completed within the targeted turnaround time of 30 Days

80%of tender contracting completed within the targeted turnaround time of 30 Days

% of tenders published completed successfully/awarded

75%of tender published completed successfully/awarded

Drive economies of scale in the acquisition of large ICT goods and services

% savings on acquisition of ICT goods and services with major OEM’s

12% savings on acquisition of ICT goods and services with major OEM’s

Drive transformation agenda

% of ICT acquisition spend through SMME entities

7% of ICT acquisition spend through SMME entities

% of ICT acquisitions spend through BBBEE L1-4 compliant entities

30% of acquisitions spend through BBBEE Level 1-4 compliant entities.

Programme 1: Procurement

Strategic Objectives, Indicators and Annual Targets

6

Programme 2: Service Delivery

Strategic Objectives Performance Indicators Annual Targets

Enhance efficiency of Government business processes

% implementation of e-Government 15 e-Services implemented for 2015/16

% implementation of e-Cabinet lead site implementation

50% of National Government departments trained on e-Cabinet

Approval of the award recommendation for the new IFMS project

Finalised Solution architecture Configuration completed for testing

% implementation of Infrastructure upgrades and modernisation plan

90% of milestones completed as per plan •Interim disaster recovery data centre established

•Primary data centre facility stabilisation

% implementation of Process Automation and Integration

90% of milestones completed as per plan•contract & bid management•Item master•Budgeting•I recruitment•Learner management•Project management & governance , risk & compliance

% level of performance against the SLA metrics contracted

95% performance against contracted SLA metrics

Ensure a secure and dependable set of e-government services and supporting structure

Number of data loss in the e-government services

• E-government security architecture• E-authentication services• Digital signatures (public key infrastructure)

Build an effective and robust information Security environment within SITA

% of ICT controls implemented according to plan

>90% of security (ICT controls) plan implemented •Vulnerability management solution•Security operations centre•NKP complaince•Physical access control system replaced•SITA employees vetted

Strategic Objectives, Indicators and Annual Targets

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Programme 3: Financial Sustainability

Strategic Objectives Performance Indicators Annual Targets

Achieve Revenue Growth % increase in revenue (year on year)

R5 390m (8% of Forecast revenue for 2014/15 of R4 692m)

Achieve Sound Financial Management

% Profitability 3% Surplus after taxLiquidity Ratio 1.2:1% Expenditure against approved Capex budget

90% of approved 2015/16 Capex

Programme 4: Organisation

Strategic Objectives Performance Indicators Annual Targets

Build a performing organisation

% Improvement on High Performing Organisation (HPO) baseline

10% Improvement on HPO baseline (All Dimension)

Programme 5: Governance & Administration

Strategic Objectives Performance Indicators Annual Targets

Establish effective governance practice

Compliance with Internal Control Framework

All 2014/15 MLPs resolved

Statement of Financial Performance

8

Statement of Financial Position

9

Cash Flow Statement

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CASH FLOW STATEMENT FOR THE YEAR

BUDGET 2015/16 BUDGET 2016/17 BUDGET 2017/18 BUDGET 2018/19 BUDGET 2019/20

Cash flows from operating activities 799 980 282 958 672 911 693 710 802 608 797 807 428 447 000

Cash flows from investing activities (1 151 000 000) (600 000 000) (600 000 000) (500 000 000) (400 000 000)

Cash flows from financing activities - - - - -

Increase/(decrease) in cash and cash equivalents (351 019 718) 358 672 911 93 710 802 108 797 807 28 447 000 Cash and cash equivalents at beginning of year 421 283 818 70 264 100 428 937 011 522 647 813 631 445 620 Cash and cash equivalents at end of year 70 264 100 428 937 011 522 647 813 631 445 620 659 892 620

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Conclusion