usaasa annual report 2010/2011 presentation to the parliament portfolio committee 1st november 2011

USAASA ANNUAL REPORT 2010/2011 PRESENTATION TO

THE PARLIAMENT PORTFOLIO COMMITTEE

1st November 2011

REVIEW OF ANNUAL REVIEW OF ANNUAL

REPORTREPORT

2010/20112010/2011

USAASA ANNUAL REPORT 2010/11

FOREWORD

•Year under review brought new Board members and new EXCO

•The Agency has seen drastic changes in the financial year in question due to migration in to the new structure.

•Foundational projects remained at the fore as they are critical to future project sustainability.

•Migration to new structure resulted in significant project delays


GENERAL INFORMATION continued…

The Agency’s projects this year were critical foundation projects designed to enhance the efficiency of the Agency in achieving its mandate.

In addition pioneering projects such as the Broadband projects were designed to ensure sustainability of deployed infrastructure and to ensure the mainstreaming of technology for development purposes.


GENERAL INFORMATION continued…

VISION

USAASA is the leading organisation in the promotion of the goals of universal service and access to Information Communication Technology services for socio-economic development.

MISSION

To facilitate the establishment of access to ICT services in partnership with all stakeholders towards achievement of an information society.


GENERAL INFORMATION…

LEGAL AND CONSTITUTIONAL MANDATES

The Universal Service and Access Agency of South Africa (USAASA) is a State Owned Entity established through the Electronic Communications Act, no 36

of 2005.

The Agency’s mandate is to promote the goals of universal access and universal service to ensure that “every man, woman, and child whether living in the remote areas of the Kalahari or in the urban areas of Gauteng can be

able to connect, speak, explore and study using ICT’s.

INTERNATIONAL TRIP 2010/2011

INTERNATIONAL TRIPS continued……

10

Pre-Determined ObjectivesPre-Determined Objectives


KEY PROJECTS

1.Set Top Box (STB) Subsidies as part of Broadcast Digital Migration (BDM) –

2.Increase in Broadband Access

3.Hand Over of existing Community Access Centres and School Cyber labs

4.New Public Access Centres (Rapid Deployment)

5.Development of the Universal Access and Service Strategy

6.Fund Manual Standard Operating Procedures for application of the USAF


PROGRAMME PERFORMANCE USAF

Programme overview voted funds summary

1.STB scheme of Ownership & Support R180 million

2. BDM capacity building R17. 3 Million

3. Increase in Broadband Infrastructure R13.5 million

4. Implementation of Handover Strategy R23, 686, 300 million

5. New Public Access Centres R13, 080 million

6. Development of the Universal Service & Access Strategy R2,7 million

7. Development of Fund Manual R2,1 million


PROGRAMME PERFORMANCE USAF

Budget adjustments

Programme Voted funds Adjusted

1. STB scheme of Ownership & Support (as part of BDM)

R180 m (not received)

n/a

2. BDM capacity building R13.7 m n/a

3. Increase in Broadband Infrastructure

R13.5 m n/a

4. New Public Access Centres R13 (r.o.) R16.6

5. Implementation of Handover Strategy

R23.6 m R18.6

6. Development of the Universal Service & Access Strategy

R2.7 m R3.1

7. Development of Fund Manual R2.1 m n/a

8. Connectivity schools & cyber labs R3.5

Project 1: Set-Top (STB) Subsidies as part of BDM

OUTPUT PERFORMANCE MEASURE/ INDICATOR

TARGET MILESTONE

STB’s subscribed for poor TV-owing households

Percentage of poor TV-owing households subscribed (for purchase of STBs as part of Broadcast Digital Migration

367, 000 subsidised Set Top Boxes distributed

Not Achieved. Project put on hold whilst awaiting for the strategy to be approved.

STB Subsidy – Historical Overview

• BDM Policy specifies the use of the USAF to subsidize needy TV-owning households

• Cabinet approved a subsidy level of R490 or 70% towards the cost of an STB per household for a total of 5m needy TV-owning households

• This tallies to R2.45b in total from the USAF over the dual illumination period. R180m was allocated during 2010/11.

• USAASA allocated R17,2m over two years Capacity Building for BDM. R7,4m was spent during 2010/11 financial year.

16

• Communications Strategy & Plan.

• Means test proposal. Stakeholder Identification & Partnerships.

• Needy Households Identification Plan & Systems Design

• Project Charter & Operational costs @ 20%

• Network Infrastructure review @ 20% project costs

• Documentation review & Technical Review

17

BDM Capacitation

Project 2: Increase in Broadband Infrastructure


TARGET MILESTONE

Deployed Broadband Infrastructure

Number of (declared) underserviced areas covered with broadband

3 (declared) under-serviced areas with broadband infrastructure. In line with target a competitive Bidding Strategy was developed and achieved.

• Msinga Local Municipality. A local operator was appointed to roll out infrastructure.

• Emalahleni & Giyani Local Municipalities placed on hold.

Project 3: Community Access Centres and School Cyber Labs (Handover Project)


TARGET MILESTONE

Fully functional and sustainable access centres

Percentage of Access Centres handed over and fully functional

100% community access centres and school cyber labs handed over and sustainable over a long term

Not Achieved. Implementation of the handover strategy continued; culminating in completion of the training program and signing of MOU for the first batch of handover projects. Other sites to follow.

Project 4: New Public Access Centres


TARGET MILESTONE

Fully functional and sustainable access centres

Percentage of Access Centres handed over and fully functional

100 new access facilities deployed

Not achieved. 23 sites were secured and construction began. Delays due to theft and site identification.

Project 5: Development of the Universal Access and Service Strategy


TARGET MILESTONE

Universal Access and Service Strategy Report

A Universal Service Strategy which encompasses clear indication of access, usage and uptake of ICT appropriate models of access and funding.

Development of the Universal Access and Service Strategy.

Not Achieved. A service provider was contracted to assist the Agency with the development of the strategy and has completed the document. The process of stakeholder consultation and public participation will be undertaken in the next financial year.

Project 6: Fund Manual and Standard Operating Procedures for Application of the USAF


TARGET MILESTONE

Fund Manual and SOP for the USAF

Fund Manual and SOP adopted by the Board and DoC

Clear guidelines for the application of the Fund Manual and SOP for the USAF

Not Achieved. Service provider was contracted to assist the Agency with the development of the strategy and has completed the document. The process of stakeholder consultation and public participation will be undertaken in the next financial year.

Project 7: Monitor and Evaluate Effective use and Social Appropriation ICTs


TARGET MILESTONE

Development of measureable ICT access and impact indicators

ICT Access and impact indicators report

Finalisation and adoption of a list of universal access and impact indicators

Not Achieved. Report on ICT access and impact indicators


HUMAN RESOURCES


Surname Name Designation

Date of Appointment

Post Levels

Package/ Gross

Car Allowance

13th Cheque

Housing Per Annum UIF

Medical Aid

Subsidy

Provident Fund

Employer Contribution Per Annum

Moleele Phineas Chief Executive Officer01/10/2007 15

1025133 0 0 0

1497.36 0 0

Mollo Molefi Executive Manager: BDS01/09/2010 14 830504 0 0 0

1497.36 0 0

Mngadi ThandekaExecutive Manager: Performance

16/07/2010 14 830504 0 0 0

1497.36 0 0

Hlubi Andrew Chief Financial Officer03/06/2010 14 830504 0 0 0

1497.36 0 0

Moiloa Makhotso Senior Manager: Stakeholder07/09/2009 13 795204 0 0 0

1497.36 0 0

Lamani Winile National Programme: Manager

26/10/2006 13 819240 0 0 0

1497.36 0 0

Scheepers Sharonne Senior Manager: Administration

21/04/2008 13 727248 0 0 0

1497.36 0 0

Mngqibisa Sipho Programme: Manager MP

21/04/2008 13 705912 60000 0 0

1497.36 0 0

Nivi Trevor Senior Manager: Research16/02/2005 13 727248 0 0 0

1497.36 0 0

Makenete Thabo Manager: Broadcasting

07/05/2007 13 705912 0 0 0

1497.36 0 0

Mashiane Jimmy Chief Internal Audit

01/05/2009 13 727248 0 0 0

1497.36 0 0

Grobler Sare Board Secretariat01/04/2007 13 727248 0 0 0

1497.36 0 0

Manamela Joshua Programme: Manager NW

01/06/2000 13 705912 60000 0 0

1497.36 0 0

Fenyani Mantjie IT Manager01/06/2008 13 695475 0 0 0

1497.36 0 0

Ngcwembe Linda Senior Manager: Finance

01/11/2007 13 727248 0 0 0

1497.36 0 0

Mathinjwa Aubrey Manager Infrastructure

01/03/1997 12 567957 0 0 0

1497.36 0 0

Dlamini Phumi Senior Admin Officer21/05/2007 11 438285 0 0 0

1497.36 0 0

Mahlangu Khosi District Manager: GP

17/07/2003 11 465180 60000 0 0

1497.36 0 0


Samons Mongene Manager: Research 02/02/2001 11 465180 0 0 01497.3

6 0 0Abrahams Thato Communications Officer 06/12/2010 11 406839 0 0 0

1497.36 0 0

Sephiri Mokgobo Manager: Accountant 01/01/2011 12 482160 0 0 01497.3

6 0 0

Matsepe Thato Senior Manager IT 13/12/2010 13 705912 0 0 01497.3

6 0 0

Mbatha Archie Senior Manager SCM 13/12/2010 13 705912 0 0 01497.3

6 0 0

Nzuza Sandile District Manager: KZN 01/06/2003 11 438285 60000 0 01497.3

6 0 0

Zoko Vusi Manager Legal Services 01/04/2009 12 504180 0 0 01497.3

6 0 0

Xamesi Jeanette District Manager: EC 01/03/1997 10 304311 600002535

9 96001497.3

61216

8 38038.875

Sithole Mandla Programme Manager: KZN 03/03/1997 11 465180 60000 0 01497.3

6 0 0

Mafole Pontsho Programme Manager: FS 01/07/1999 11 458304 60000 0 01497.3

6 0 0

Tilimeni Mawethu Programme Manager: EC 01/04/1999 11 472155 60000 0 01497.3

6 0 0

Marima Lesiba Programme Manager: LP 01/01/2008 11 412941 60000 0 01497.3

6 0 0Ramahlape Daniel Programme Manager: WC 01/05/2006 11 425427 60000 0 0

1497.36 0 0

Mlangeni Magugu Departmental Administrator 01/06/2003 9 222978 0

18582 9600

1497.36

12168 27872.25

Moremi Silas Chief Admin: Officer Finance 01/09/2000 9 240207 02001

7 96001497.3

61216

8 30025.875

Maluleka Thilly HR: Practitioner 01/06/2003 9 219681 01830

7 96001497.3

61216

8 27460.125

Ceda Karabo Communications Officer 01/06/2003 9 236658 01972

2 96001497.3

61216

8 29582.25


Mashaba Evelyn Departmental Administrator03/03/1997 9 243810 0

20318 9600

1497.36

12168 30476.25

Mapela Esme SCM Admin01/08/1998 10 299814 0

24985 9600

1497.36

12168 37476.75

Manyama Moyahabo Finance Administrator

16/03/2009 9 210084 0

17507 9600

1497.36

12168 26260.5

Mokone Paul OHS Administrator10/09/2007 8 182073 0

15173 9600

1476.96

8240.04

22759.125

Rangateng David HR: Practitioner

01/05/2002 9 219681 0

18307 9600

1497.36

12168

27460.125

Motlhabi Tshepiso HR: Practitioner01/09/2007 9 219681 0

18307 9600

1497.36

12168

27460.125

Maselela Maria Front Desk Coordinator01/06/2008 8 179382

14949 9600

1370.52

12168 22422.75

Makhafola Khumo Legal Administrator

04/08/2008 8 179382 0

14949 9600

1497.36

12168 22422.75

Sekome Roneah Registry Officer02/03/2009 8 176733 0

14728 9600

1248.84

12168

22091.625

Mosioa Caroline Cleaner01/10/2010 2 55830 0

4652.5 9600 654.36

12168 6978.75

Mbele Grace Cleaner01/10/2010 2 55830 0

4652.5 9600 654.36

12168 6978.75


Kgomo Japhter IT End User 01/12/2010 9 206982 01724

9 96001497.3

61216

8 25872.75

Mahloane Mando PA to CFO 06/12/2010 9 206982 0

17249 9600

1497.36

12168 25872.75

Mohlapo Mary-Ann PA to BDS 06/12/2010 9 206982 01724

9 96001497.3

61216

8 25872.75

MsibiNomthandazo PA to CS 01/01/2011 9 206982 0

17249 9600

1497.36

12168 25872.75

Dlamini Gontse Board Administrator 01/01/2011 9 206982 01724

9 96001497.3

61216

8 25872.75

MbangiMzuqhamile Internal Auditor 01/12/2010 10 258342 0

21529 9600

1497.36

12168 32292.75

Bokaba Tshepiso PA to CEO 01/01/2011 10 258342 02152

9 96001497.3

61216

8 32292.75

Ramosebudi Hilda Internal Auditor 01/01/2011 10 258342 0

21529 9600

1497.36

12168 32292.75

MatlanaNozibonelo Provincial Administrator: FS 01/03/2011 9 206982 0

17249 9600

1497.36

12168 25872.75

August Anathi Provincial Administrator: WC 01/03/2011 9 206982 01724

9 96001497.3

61216

8 25872.75

Masuku Refiloe Provincial Administrator: LP 01/03/2011 9 206982 01724

9 96001497.3

61216

8 25872.75

246714

54 6000004730

852592

0083267.

763246

08709627.1

3

HR continued…

Vacancies:

Executive Manager: Corporate Services

Provincial Programmes Manager: Northern Cape

Resignations & Promotions

Executive Manager: Corporate Services

Provincial Programmes Manager: Northern Cape

Performance Reward

6% levels 13-upwards

8% levels 1-1229

HUMAN RESOURCE MANAGEMENT

POSITION USAASA USAASA LEVELS

DPSA DPSA LEVELS

Number GENDER M F

RACE

CEO 15 DEPUTY DIRECTOR GENERAL

15 1 1 1 AM

EXECUTIVE MANAGERS 14 CHIEF DIRECTOR 14 3 2 1 2 AM1 AF

SENIOR MANAGERS 13 DIRECTOR 13 12 8 4 8 AM2 AF1CF1WF

MANAGERS 12 DEPUTY DIRECTOR 12 5 4 1 04 A M01 WF

ADMINISTRATION MANAGER/ PROVINCIAL PROGRAMME MANAGERS/ LEGAL OFFICER/ RESEARCH MANAGER/COMMUNICATIONS OFFICERS/ INTERNAL AUDIT/ DISTRICT MANAGERS/ SCM OFFICERS

10 - 11 ASSISTANT MANAGER

10 - 11 23 11 12 11 AM11 AF01 WF

ADMINISTRATORS/ FINANCE OFFICERS/ HR OFFICERS/ RECEPTIONIST/ PROVINCIAL ADMINISTRATORS

8 - 9 CLERKS/ ADMINISTRATORS/ OFFICERS/ SECRETARIES

6 - 9 18 4 14 04 AM14 AF

HYGIENE SPECIALISTS 2 -5 CLEANERS & CASUALS

1 - 5 2 0 2 2 AF

TOTAL 64 30 34 64

POST LEVELS & GENDER STATISTICSRace: AM = AFRICAN MALE, AF = AFRICAN FEMALE, CF = COLOURED FEMALE & WF = WHITE FEMALE


EMPLOYEE WELLNESS PROGRAMMES

•The Agency has deployed an employee assistance platform that enables each USAASA employee access to a variety of discounted services from travel to children’s homework assistance to medical and psychological services.

•In addition to the basic platform, the Agency has included telephonic and face-to-face consultations with therapists with the option of assistance outside of medical insurance limits.

•Monthly workshops on personal health, personal financial management, competitions and emergency road assistance.


FINANCIALS

32

USAASA ANNUAL REPORT 2010/11REPORTS TO THE FINANCIAL STATEMENTS

REPORT OFTHE AUDIT COMMITTEE

EFFECTIVENESS OF INTERNAL CONTROL

•The internal systems were tested and found to be ineffective, including deficiencies in the supply chain management process, information technology and human resources, risk and prevention plan and compliance with approved delegation of authority. However, corrective action is being taken.

RISK MANAGEMENT

•A risk management strategy has been formulated and adopted. However the Operational Risk Management Committee is not functional due to key role players and lack of adequate handover plans that were developed by management were not fully implemented.

USAASA ANNUAL REPORT 2010/11REPORTS TO THE FINANCIAL STATEMENTS

REPORT OF THE AUDIT COMMITTEE

GOVERNANCE

•Majority of governance processes were found to be adequate and partially effective. Management and the Board have put mechanisms to ensure adequacy and effectiveness of governance practices.

EVALUATION OF FINANCIAL STATEMENTS

•Financial statement of USAASA & USAF were found to comply with all applicable accounting practises

•The committee confirms that the adoption of the going concern assumption in preparation of the Annual Financial Statements for USAASA & USAF were appropriate.


REPORT ON THE FINANCIAL STATEMENTS

The financial statements present fairly, in all material respects, the financial position of the Universal Service and Access Agency of South Africa as at 31 March 2011, and its financial performance and cash flows for the year ended in accordance to GRAP & PFMA.

USAASA ANNUAL REPORT 2010/11REPORT ON THE OTHER LEGAL REGULATORY REQUIREMENTS

Predetermined Objectives•Targets were not specific in clearly identifying the nature and required level of performance

•Targets were not measurable in identifying the required performance

Planned•71% of the planned and reported indicators/measures were no clear, with an unambiguous definition to allow for data to be collected consistently.

Expenditure Management•Did not take effective and appropriate steps to prevent irregular expenditure as per the requirement of the PFMA

Annual Financial Statements, Performance and Annual Reports•Did not submit financial statements for auditing within two months after the end of the financial year as per the requirement of the PFMA

•Submitted financial statements for auditing that were not prepared in all material aspects in accordance with generally accepted accounting practices as required by the PFMA, with regards to plant, equipment and world cup disclosures which were subsequently corrected.


REPORT ON THE OTHER LEGAL REGULATORY REQUIREMENTS continued…

STRATEGIC PLANNING & PERFORMANCE MANAGEMENT•Did not ensure that the public entity has and maintained an effective, efficient and transparent system of internal control regarding performance, which described and represented how the entity processes performance planning, monitoring, measurement, review and reporting were conducted, organised and managed as required by the PFMA.

ASSET MANAGEMENT•Did not perform and keep records of an asset reconciliation and creditors reconciliations as per the PFMA


REPORT ON THE OTHER LEGAL REGULATORY REQUIREMENTS continued…

INTERNAL CONTROL•LEADERSHIP – Did not ensure that performance management systems and processes are in place before and during the strategic planning session to ensure that targets are measurable, time bound, specific, accurate and realistic.

•FINANCIAL & PERFORMANCE MANAGEMENT – The Agency used a service provider to manage the fixed asset register and bar-coding however, it failed to deliver on time and as a result the AFS were delivered late for audit purposes.

•GOVERNANCE – There are no business continuity plan, disaster recovery plan and fraud prevention plan


FORMAT OF THE AUDIT REPORT continued….

AUDIT OPINION - USAASA

•The financial statements fairly present fairly, in all material respects, the financial position of the Universal Service and Access Agency of South Africa as at 31 March 2011, and its financial performance ans cash flows for the year then ended in accordance with SA Standards of GRAP and in the manner required by the PFMA

EMPHASIS OF MATTER - USAASA

•Irregular expenditure : to the amount of R490,000 as a result of splitting of tender

•Material under spending of the budget

•Fruitless and wasteful expenditure : to the amount of R66, 000 as result of capped leave being taken over by the Agency


FORMAT OF THE AUDIT REPORT continued….

AUDIT OPINION – USAF

The financial statements fairly present fairly, in all material respects, the financial position of the Universal Service and Access Agency of South Africa as at 31 March 2011, and its financial performance and cash flows for the year then ended in accordance with SA Standards of GRAP and in the manner required by the PFMA

EMPHASIS OF MATTER - USAF

Attention is drawn to the material under-spending of the USAF in relation to the R180million that was never transferred to the Agency by the Shareholder in respect of the Broadcasting Digital Migration.

ANNUAL FINANCIAL STATEMENTS - USAASAANNUAL FINANCIAL STATEMENTS - USAASA

41

Notes to the Annual Financial Statements

Note pages 18 to 32 of the audited financial statements document.

45

ANNUAL FINANCIAL STATEMENTS - USAFANNUAL FINANCIAL STATEMENTS - USAF

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Note pages 14 to 21 of Audited Financial Statements

Annual Report 2010.2011\write ups\sare\USAF Annual Financial Statements-GRAP 2011.pdf

QUESTIONS?

usaasa annual report 2010/2011 presentation to the parliament portfolio committee 1st november 2011

Documents

usafusaasa annual report

millionusaasa annual

goals of universal access

establishment of access

goals of universal service

new public access centresr13

new structure

broadband projects