PRESENTATION TO PORTFOLIO COMMITTEE ANNUAL REPORT 2008/09 20 OCTOBER 2009

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PRESENTATION TO

PORTFOLIO COMMITTEE

ANNUAL REPORT 2008/09

20 OCTOBER 2009

The Department of Home AffairsThe Department of Home Affairs

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Presentation

• Introductory remarks

• Context of the Report: 2008/9

• Selected highlights from performance information

• Financial information

• Concluding remarks

Structure of the presentation

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The Department has received a series of disclaimers or qualified audits, pointing to serious weaknesses in financial management and controls. One of the priorities of the turnaround programme launched in 2007 has been to address these weaknesses.

The reports of the Audit general and Audit Committee acknowledge that progress has been made. This is reflected in the audit opinion moving from a disclaimer in 2008 to a qualified audit in 2009.

The qualified opinion was based on a number of shortcomings that we are taking very seriously. We are addressing each of the areas of greatest concern: departmental revenue, capital assets, payables and leases. We are also taking steps to improve overall financial management and governance.

Introductory remarks

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The context of the Annual Report: 2008/09

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What is the Department reporting against? 1/2

The Annual Report for April 2008 – March 2009 reports against:

A 3-year Strategic Plan that is organised under 6 high level integrated strategic objectives in support of government priorities

The annual performance targets (2008-2009) for achieving the outcomes specified in the Strategic Plan.

The budget that was allocated and voted for.

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What is the Department reporting against? 2/2

The Annual Report also reports against the audited financial statements of the DHA and GPW, including:

The Accounting Officer’s Report – DHA

The Accounting Officer’s Report – GPW

The Appropriation Account and related notes

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2008 – 2009: The Departmental context 1/ 2

The primary strategic goal of the Department is to secure and affirm the identity and status of citizens; and to manage immigration in the interest national security and development priorities.

To achieve this goal we are in the process of transforming into a modern, cost-effective and efficient organisation. This means having officials who are characterised by values of public service, honesty and patriotism.

In June 2007 a programme was launched to turnaround the Department. This followed a report by the Support Intervention Team that was requested by the Minister after an audit disclaimer. The report pointed to a wide range of deeply rooted problems. These included leadership and management, human resources, organisational design and information systems.

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2008 – 2009: The Departmental context 2/2

TRANSFORMATION STRATEGY OUTCOMES AND CHALLENGES

Phase 1 (June – December 2007)

Define problems, redesign department and service delivery quick wins

Baseline studies; new service delivery and organisational model; quick wins achieved, such as ID process made more efficient; skills were transferred by having joint project teams

Phase 2: (Jan 08 – March 09)

Broad-based implementation of change; Implement service delivery and the new organisational model; transforming of more processes to improve service delivery; address key audit issues

Processes and turnaround times were improved; Many audit issues and some security risks were addressed. Challenges are slow implementation of the new organizational model; ongoing problems of corruption and poor service; and outdated systems.

Phase 3: (April 09 – March 2010)

Extend and sustain change; counter corruption; strong management values

Further process improvements being made; service delivery gains are being sustained. Major challenges are to strengthen management, fight corruption, and train staff.

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Performance per Strategic Objective

PROGRAMME PERFORMANCE

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Performance against Strategic Objectives

Strategic Objective 1: To provide secure, efficient and accessible civic and related

services and products to citizens and legitimate residents within specified timeframes

Improved ID turnaround time from 127 days to an average of 40 days through the

implementation of operations management, process reviews and ID Track and Trace (target

was 60 days for first issues and 56 days for re-issues).

Improvement in the quality of issuance of enabling documents through redesigned processes

in frontline offices

Online fingerprint verification was introduced at 217 offices enabling front office personnel to

verify the identity of clients on application and reduces the need to forward the applications to

the central ID production facility for manual fingerprint verification. This results in the on-the-

spot issuance of temporary identity certificates and emergency and temporary passports within

a maximum of two working days

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New late registration of birth process implemented that is detached from the ID issuing process

and requires:

Supporting documents submitted in support of applications are thoroughly screened at

provincial level

All applicants and informants are interviewed by a regional screening committee

The ten fingerprints of applicants are searched against records on AFIS (automated

fingerprint identification system) to determine if previous records exist

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National Population Register (NPR) clean up continued with 12077 cases resolved

of multiple persons sharing same ID and 5682 of one person with multiple IDs

Implemented SMS functionality for birth, marriage and death unabridged certificate system to inform applicants of collection information

Track and trace functionality for Late Registration of Births implemented

Large scale programme of providing IDs to 16year-olds undertaken in co-operation

with the Department of Education

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Strategic Objective 1: To provide secure, efficient and accessible civic and related services and products to citizens and legitimate residents within specified timeframes

Support rendered for elections: verifying identity and issuing documents

Access improved through opening of 45 additional service delivery points

and the improvement in the functionality of mobile units

Capacity of Client Service Centre was expanded to deal with 1 163 832

contacts made. 96.25% of calls are answered within 20 seconds (target

was 80%).

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Strategic Objective 2: To manage migration effectively by enabling the movement of skilled workers into the country and efficiently and securely facilitating the entry, stay and exit of visitors.

35 Large Accounts maintained and 17 additional accounts serviced (target was 50)

Sustained adherence to turnaround times for temporary (business permits, visas,

etc) and permanent residence permits

Travellers cleared within 1.5 to 2 minutes at ORTIA, CTIA and Durban International Airport

2393 quota permits were issued to foreigners with scarce and critical skills (target was 2000)

Law Enforcement Strategy adopted by ExCo – provides a foundation for the implementation of a uniform and standardised policy to enforce the Immigration Act

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Performance against Strategic Objectives Strategic Objective 2: To manage migration effectively by enabling the

Movement of skilled workers into the country and efficiently and securely facilitating the entry, stay and exit of visitors.

National Immigration Information System (NIIS) was put in place to link reception centres and to enable the efficient processing of asylum seekers

Roll out of Inspectorate standardised processes and training delivered to all Inspectorate staff

New middle management cadre of 30 deputy directors for Inspectorate was appointed in February 2009

Finalised the appointment of a centrally based Analysis Unit compromising of eight officials and implementation of integrated management reporting

Special projects implemented addressing xenophobic incidents and management of displaced persons

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Strategic Objective 3: To determine the status of asylum seekers and manage refugee affairs in accordance with international treaties and the bill of rights as enshrined in the constitution

Single day processing capability instituted at each of the six national Refugee

Reception Offices for the issuance of section 22 and section 24 permits

Refugee status determination and granting of asylum finalised within 6 months (on average), a total of 3,746 Refugee Status were granted within the required period

Refugee Travel documents issued within 10 days (on average), a total of 482 Refugee Travel Documents issued within the targeted period

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Strategic Objective 4: To foster domestic, regional and international co-operation towards

improved economic growth and development, including events with strategic importance

to the country, such as the FIFA world cup.

Foundation laid for Confederations and FIFA Soccer World Cup through sign off of user requirements and conceptual design to ensure organisational readiness

Memorandum of Understanding (MoUs) with China (visa agreements for diplomatic passport holders), Nigeria (visa agreement for diplomatic and official passport holders), Lesotho (Agreement on cross-border movement) and Zimbabwe (co-operation agreement) developed

MoU with Lesotho was signed but framework for implementation to be developed. MoU with Zimbabwe was signed on 4 May 2009

Various awareness campaigns and community outreach initiatives successfully conducted, e.g. World Cup 2010, South African Passport ushered in successfully, Check your status campaign and ID collection.


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Strategic Objective 5: To deliver the department’s mandate effectively by implementing a new organisational model that is characterised by caring officials who serve with professionalism and by effective governance and operational control

DHA organisational structure finalised, adopted and implementation commenced through advertisement of 641 positions of which 528 were filled

10 574 employees underwent key training interventions of which 277 related to Immigration Officers undergoing the 2010 Immigration training in preparation for the Confederation Cup, World Cup and beyond – detailed breakdown in next slide

SANAI Formative Training Programme was successfully completed that will lead to the professionalisation of the immigration cadre and improved immigration service

65% achievement rate for finalised misconduct cases (target was 40%), 80% success rate in disputes in favour of DHA (target was 60%), 54,76% grievances reduction achieved against a targeted 40%


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PROGRAMME PERFORMANCE FOR 2008/09 (1 Apr 08 to 31 Mar 09)

Name of Training Course Number of employees attended

Civic Services

Immigration Services

Computer training

Batho Pele Revitalization

Change Resilience

Management of Absenteeism

Customer Care

Budget training

Fleet Management

Mentorship

2395

949

557

2 790

2 252

349

262

396

470

154

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Strategic Objective 5: To deliver the department’s mandate effectively by implementing a

new organisational model that is characterised by caring officials who serve with

professionalism and by effective governance and operational control

Learning Centre Operating Model has been redefined, the costing model completed and the processes and activities mapped out. The establishment of the DHA Learning Centre will ensure mainstreaming of training interventions and provision of accredited Home Affairs qualifications

Relationships between Organised Labour and the Department strengthened. Agreements on Turnaround were concluded between Unions and the Department

Departmental Bargaining Council, 9 Provincial Consultative Forums and Turnaround Consultation Forum structures established and functional. This will lead to improved stakeholder relations resulting from functional ER structures which enhances labour stability and enable business of DHA to continue un-interrupted

Guidelines on implementation of all priority policies have been developed that will ensure improved governance and compliance


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Strategic Objective 6: To create an enabling environment by putting in place

support services that are effective, efficient, integrated and that prevent corruption

Information Services

Improved IT security through: E-directory stabilization that will minimize unauthorized access to DHA systems Stabilisation of Biometric Access Control Management (BACM) system Deployment of anti-virus servers for HANIS and Waltloo and anti-virus on PC level Repair and installation of 33 firewalls across the country leading to improved secured and

protected systems and infrastructure

National Immigration Information System (NIIS) implemented at 6 refugee sites that will result in fraud minimisation

Online Verification System rolled out to 217 DHA offices to ensure faster, reliable and more effective customer services


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Information Services

11 sites added to Virtual Private Network (VPN) resulting in faster, stable, reliable and managed network customized to the Department’s specific requirements

45 Regional IT managers and Interns appointed and inducted

Death Status Queries system implemented. Over 40,000 queries received in 2 months since inception for dead/alive status via SMS) leading to a reduction in corruption and enhanced communication with clients

Expenditure for Who Am I Online was for the planning, procurement of infrastructure and implementation of back end systems which were used for testing of systems to be implemented in the live environment


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Strategic Objective 6: To create an enabling environment by putting in place support

services that are effective, efficient, integrated and that prevent corruption.

Finance

Disposal and Expenditure Review Committees established and functional

33 Offices refurbished

Targeted staff (1105) trained at Head Office and in Provinces

Established revenue support team to address non-compliance

96,90% of allocated budget spent (2008/09)

Asset Register compiled

Pilot of integrated receipt engine (IRE) for improvement of financial management conducted in two offices


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Strategic Objective 6: To create an enabling environment by putting in place support

services that are effective, efficient, integrated and that prevent corruption

Internal Audit

55 out of planned 60 audits conducted. Reasons for non achievement of target are moratorium on foreign travelling and audits conducted by Auditor-General themselves

Key issues identified are: ineffective controls over safeguarding of cash and assets, inadequate capacity in offices and training on basic internal controls, management oversight and inadequate document management (audit trails). Concerted efforts are underway to rectify these issues

Annual Internal Audit plan, Audit Committee Charter and Internal Audit Charter approved by Audit Committee

Compliance with Treasury Regulations in terms of number of Audit Committee meetings for the year was achieved


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Strategic Objective 6: To create an enabling environment by putting in place support services that are effective, efficient, integrated and that prevent corruption

Internal Audit

Internal Audit function strengthened through:

Audit Services structure revised and approved

Capacity enhanced through appointment of 20 interns

Agreed Management Action and Risk Acceptance Policies approved by EXCO and Audit Committee

Branch Risk Representatives were appointed. On the job training on risk management was provided to risk representatives

Comprehensive Internal Audit procedure manual approved

Evaluation of performance evidence to strengthen internal systems and controls

Risk Register 2008/2009 was updated


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Counter Corruption and Security Services

Capacity enhanced through appointment of key staff (e.g. 4 Vetting Officers, 3 Prevention Officers, 15 Control Security Officers, 4 Investigating Officers, 1 Analyst and

3 Senior Security Administrative Officers appointed)

62 Offices evaluated with regard to corruption related risks (target was 60) – focus is on preventative measures for key business processes

Pre-employment screenings for all requests finalised and 13 targeted service providers screened to enhance the integrity of DHA employees and service providers

80 offices monitored for compliance with Minimum Information Security Standards (MISS) to ensure that key controls are in place


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Concluding Remarks

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Conclusion - Progress and Challenges 1 / 3

The Annual Report reveals that we have made significant improvements in the way we deliver services. Steps have also been taken to improve quality and security, although these need to be far more comprehensive.

A 2009 survey by GCIS indicates that the poor and marginalised in particular appreciate advances such as faster turnaround times, better information via our Client Service Centre and SMS notification.

These advances are being maintained by a number of hard working officials, in spite of inadequate infrastructure and out of date systems – problems that require time and substantial resources to address.

Progress

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CHALLENGES

Serious gaps in management, supervision and governance.

We acknowledge that a minority of officials, working with syndicates, continue to undermine our gains through corruption.

A generally poor culture of service delivery.

Low level of many officials in terms of qualifications and skills.

Out of date systems and enabling technology.

A legacy of poor infrastructure and a lack of a conducive environment for staff and citizens.


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Our organisational strategy going forward has four main thrusts:

Putting in place strong management, leadership and governance to drive new values at every level of the organisation.

Intensive development of our staff through substantial training programmes that enable them to deliver on their mandates.

Continue improving our processes and systems, with a strong focus on security.

Taking robust measures to fight corruption in partnership with the public, other departments and other key stakeholders.

The above measures will succeed if the mass of South Africans value and protect their citizenship and identity.


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Questions and Comments

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FINANCIAL INFORMATION

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1. Expenditure for 2008/09 financial year

2. Audit report3. Challenges4. Way forward

TABLE OF CONTENTS

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SUMMARY OF EXPENDITURE FOR 2008/09 PER PROGRAMME

PROGRAMMES

FINAL APPRO-

PRIATION

EXPENDI-TURE AS AT

31 MARCH 2009

UNDER/ (OVER-

SPENDING)

% OF BUDGET SPENT

R’000 R’000 R’000

1. Administration 1 365 380 1 365 360 20 100,0

2. Services to Citizen 1 258 111 1 143 893 114 218 90,9

3. Immigration Services 982 780 946 970 35 810 96,4

4. Transfers to Agencies 1 210 337 1 210 337 – 100,0

TOTAL 4 816 608 4 666 560 150 048 96,9

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SUMMARY OF EXPENDITURE FOR 2008/09 PER ECONOMIC CLASSIFICATION

SCOA CLASSIFICATION

FINAL APPRO-

PRIATION

EXPENDI-TURE AS AT 31

MARCH 2009

UNDER/ (OVER-

SPENDING)

% OF BUDGET SPENT

R’000 R’000 R’000

Compensation of employees 1 327 951 1 296 049 31 902 97,6

Goods and services 1 934 772 1 843 226 91 546 95,3

Financial transaction in assets and liabilities

– 517 (517) –

Transfers and subsidies 1 222 026 1 221 808 218 100,0

Payment of capital assets 331 859 304 960 26 899 91,9

TOTAL 4 816 608 4 666 560 150 048 96,9

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Detail of Over/Underspending

SCOA CLASSIFICATION

UNDER/ (OVER-

SPENDING)

R’000

REASONS FOR (OVER)/UNDERSPENDING

Compensation of Employees

31 902 The Department was involved in a restructuring process at SMS level, which necessitated the migration of officials to the new organizational structure. Hence a decision was taken to put hold on the filling of SMS positions. The process of migration of SMS members was completed in March 2009.

Goods and Services 91 546 Under-spending mainly due to :• the Advance Passenger Processing (APP) on which the custom design study was only signed off in April 2009.• Furthermore, the erroneous allocation of capital expenditure to Goods and Services.

Financial transaction in Assets and Liabilities

(517) This relates to Debts written off mainly comprising of ex-employees, salary related debts, FMS subsistence and travel, Dishonoured cheques, and Financial Assistance.

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Detail of Over/Underspending

SCOA CLASSIFICATION

UNDER/ (OVER-

SPENDING)

R’000

REASONS FOR (OVER)/UNDERSPENDING

Transfers and subsidies 218 Under-spending mainly due to the delay in finalisation of payment of employee benefits on retirement.

Payment of Capital Assets

26 899 Savings can be attributable to the delay in the implementation of the Smart ID Card project. By year-end the process was at a tender stage with SITA.

Furthermore, savings are due to delay in the pilot project for the Advance Passenger Processing (APP) System which resulted in the conclusion of the contract by 14th February 2009. The Custom Design was completed and sign-off by end of April 2009.

In addition the over expenditure on software and other intangible assets is due to the implementation of Who Am I Online Project.

TOTAL 150 048

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Roll Overs

PROJECTS

UNDER/ (OVER-

SPENDING)

R’000NATURE OF THE PROJECT

Advance Passenger Processing Project

39 642 The advanced passenger information and profiling systems allow airlines to send information on passengers to immigration officers. These systems were piloted during the 2009 FIFA Confederations Cup and will be utilised during the 2010 FIFA World Cup.

Who Am I Online 110 406 This project is an Information Technology driven initiative to address the replacement of most of the existing technology infrastructure currently deployed in DHA. The end result which DHA is striving to achieve an integrated online system to improve turnaround times and thereby improve service delivery.

TOTAL 150 048

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AUDIT REPORT

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Capital AssetsDescription Action Plan Time Frame Stakeholders

Completeness and accuracy of the fixed asset register that includes assets not included in the asset register, asset included in the asset register but not verifiable and unsubstantiated fair value adjustment

• Development and implementation of asset management system• Verification of assets and updating of the asset register including bar-coding, disposal of assets and reconciliations.• Review of the asset management policy.• Consult Auditor-General on the fair values of assets.

• End November 2009

• End March 2010


• End October 2009

• DHA

• DHA

• DHA

• Auditor-General

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LeasesDescription Action Plan Time Frame Stakeholders

Contravention of Treasury Regulations in terms of entering into a Finance Lease in respect of a Software for Who Am I Online

• Reclassify the WAIO software lease to a finance lease as condoned by National Treasury.•To re-negotiate the contract with the service provider to ensure that assets will be transferred to the Department at the end of the lease period.


• End March 2010

• DHA

• DHA

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PayablesDescription Action Plan Time Frame Stakeholders

Clearance of repatriation deposit suspense account and immigration control account due to non availability of supporting documents

• To approach National -Treasury

– For the write-off of the repatriation refunds suspense accounts (R11.7million)– To transfer the deposit to the Immigration control account (R12.6 million)

• Conclude memorandum of understanding between the Department of Home Affairs and Department of International Relations and Co-Operation



• National Treasury

• DHA

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Departmental RevenueDescription Action Plan Time Frame Stakeholders

Inability to substantiate the accuracy of amounts and completeness of transactions recorded for revenue collected from enabling supporting documents processed due to lack of audit trails of application forms processed

• Implementation of an Integrated Receipting Engine system.

– The roll out approach is to target the top 100 offices that account for 80 % of local revenue. – Establish a revenue support system to ensure compliance within the 20% remaining offices on the manual system of collecting revenue.

• End January 2010

• End March 2010

• DHA

• DHA & Financial Institutions

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Departmental RevenueDescription Action Plan Time Frame Stakeholders

Lack of integrated accounting system for processing immigration fines and penalties in terms of Section 50 of the Immigration Act, to facilitate the occurrence, completeness and accuracy of income from immigration fines and penalties

• To clean-up the long outstanding transactions on Penalty Case System (PCS).•Integration of PCS with BAS to ensure compliance with revenue management processes and immigration regulations• To propose Legislative reform with regard to penalties in respect of individuals, Transport operators and ships (Immigration regulations) to align with the PFMA and Treasury Regulations

• End March 2010

•End March 2010

•End March 2010

• DHA

•DHA

•DHA and National Treasury

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Irregular ExpenditureDescription Action Plan Time Frame Stakeholders

• Non-compliance with procurement processes with regard to the acquiring of Who Am I Online • Participated in the Transversal Contract without prior written approval from National Treasury (Deportation transport contract)

• Finalise the investigations on the procurement of Who AM I Online System

• Obtain condonement of irregular expenditure from National Treasury

• End March 2010


• DHA, SITA and Department of Public Service and Administration

• DHA and National Treasury

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Internal Control DeficienciesDescription Action Plan Time Frame Stakeholders

Non-compliance with PFMA, Treasury Regulations, Public Service Act and Public Service Regulations

• The Department has established a project to deal with all finance and supply chain management processes in an attempt to resolve all deficiencies and weaknesses identified by the Auditor-General by strengthening the following governance structures :

– Bid Adjudication Committee– Lost Control Committee– Expenditure Control Committee– Budget Management Committee

• End November 2009 • DHA

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Challenges

• Organizational Structure (Relationship between Head Office and the Provinces)

• Capacity within the organization

• Training

• Centralization of certain processes

• Integration of business processes

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Way Forward

• Design and implement business processes

• To decentralise certain finance and supply chain management functions

• To review the structure to support finance can supply chain management processes

• To strengthen the governance structures to ensure compliance to PFMA, Treasury Regulations and Public Service Regulations

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Siyabonga

Dankie

Thank You

Realeboga

PRESENTATION TO PORTFOLIO COMMITTEE ANNUAL REPORT 2008/09 20 OCTOBER 2009

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Transcript of PRESENTATION TO PORTFOLIO COMMITTEE ANNUAL REPORT 2008/09 20 OCTOBER 2009