DEPARTMENT OF DEFENCE FEEDBACK ON PCD REPORT DOD ANNUAL by skt71486

VIEWS: 110 PAGES: 47

									         DEPARTMENT OF DEFENCE
FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT
                 FY2005/06

               (13 March 2007)
      FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06


                            Aim
• To present to the Portfolio Committee on Defence feedback on
  the Annual Report 2005/06 tabled on 12 September 2006




                                                                 2
      FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06


                        Decision
• It is requested that the Portfolio Committee on Defence approves
  the information provided as a subtantative response to the feedback
  report.




                                                                        3
        FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06

                               Defence Administration

• Para 2.2 Approved document on the IFMS system developed in collaboration
  with the National Treasury
• The National Treasury has developed a plan for the implementation of the NT
  IFMS Project.
• The scope of the DOD’s involvement is as follows:
  -     Participate as part of the adjudicating team for the application
  development toolset tender.
  -     Participate in the formalisation of the user requirement statement for the
  asset management solution as the lead department for supply chain
  management
  -     Participate in the finalisation and procurement of the HR application of
  the IFMS solution
  -     Participate in the development of the financial management application
  and the other components of the final integrated IFMS solution
  The above was confirmed during formal discussions and work sessions
  between the DOD, the National Treasury and the SITA.

                                                                                     4
         FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06

Para 2.2 Approved document on the IFMS system developed in collaboration with the
                          National Treasury Cont….


• Cognisance should however be taken of the fact that the National
  Treasury has placed a moratorium on the renewal or enhancement of
  any information system that has a financial implication in government.
• DOD is dependant upon the NT plan and its ability to deliver
  integrated financial management solutions in collaboration with the
  public sector as the user community.
• This dependency is a risk to the DOD as it has a direct effect on the
  ability of the DOD to address either qualification or emphasis of
  matter by the Auditor-General




                                                                                    5
                                  Defence Administration
Para 2.2 The Committee needs a presentation on the status of the White Paper on
   Peace-Keeping Missions and the role that Foreign Affairs are playing in compliling
   this document

• The 2007 Government Programme of Action sets out the objective of updating the White
  Paper on Peace Missions.
• DFA Role:
• The Department of Foreign Affairs is the lead Department, SAPS and the DOD are
  supporting departments. During 2006, the DOD was part of the drafting team and provided
  inputs of the DFA on the White Paper as requested.
• Status:          The Department of Foreign Affairs has subsequently submitted a Cabinet
  Memorandum on the Review of the White Paper on Peace Missions on the IRPS DG’s and
  Cabinet Committees. The White Paper was referred back for further work as directed by the
  Cluster.
• At the IRPS DG Cluster of 06 March 2007, the DG DFA undertook to expedite the
  submission of the Revised White Paper on Peace Missions to Cabinet during March 2007.
• The DOD recommends to the Committee that:
  - A joint sitting of the Committees having a portfolio concerning Foreign Affairs, Defence
  and Safety and Security be held, and
  - the Minister of Foreign Affairs be requested to provide a briefing on the Revised White
  Paper.
                 FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06
                                   Defence Administration
Par 2.2: PCD Recommendation: Planning Enabler Tool (GEJIMA) should be implemented in near
   future
GEJIMA system is being implemented in a phased approach
•    PHASE 1
    •    Capturing of Service/Divisions Level 2 Plans on GEJIMA system – on track
    •    Training of Planners/Reporters to use GEJIMA system - continuous process
    •    Quarterly Reporting – All FY06/07 quarterly reporting was captured on the system
•    PHASE 2 (Phases 2 and 3 - concurrent phases)
         • Improving GEJIMA to accommodate customer requirements to stabilise system – in
             process
         • Realigning GEJIMA system with Structure Management Control System, Financial
              Management System – adjustments once new structural changes are captured
•    PHASE 3
         • Provide integrated DOD planning and controlling solution
               • Study to determine interfacing requirements between other computer programmes and tools
                 used, in addition to GEJIMA such as Activity Based Costing tool
               • Determine final DOD user requirement
               • Decision to be made either to further develop GEJIMA system to integrate all stand-alone
                 programmes/tools or to buy best programme commercially off the shelf and develop to
                 address full DOD requirement                                                               7
               FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06
                          Defence Administration (continued)
Par 2.2: PCD requested feedback on the issue of lack of capacity and loss of skills in Military Legal
Services within 6 months
Resignation of Skilled Members
                        Attrition last 2 years
                 Male               Female           Total
African                  5                 2                 8
White                   12                 18                30
Coloured                 0                 0                 0
Indian                   1                 0                 1
Total                   18                 20                39*      *33 Military Legal Practitioners

The following Impact on Attrition (Causes for Attrition)
• High demand for highly experienced SANDF members by other departments
• Remuneration dispensation for law professionals in the DOD and other State Departments
  differ. They do not follow the same progression principles and/or appointment levels
• A lack of upward mobility once salary level 11 has been reached. New appointees
  require 5-6 years to reach experience level of service rendering
• Members feel insecure and leave the Legal Service Division as “Draft Military Discipline Bill”
  proposes abolishment of certain posts such as review counsel
                                                                                                   8
                FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06

                        Defence Administration (continued)
Causes for lack of capacity
•    No provision made on structure for
     •   Operational Law Support during external deployments (yet 8 – 9 military legal
          practitioners deployed at any given time)
     •   Posts for internal support personnel – Finance, Human Resources, etc
     •   Posts for interpreters- appointed on ad hoc basis sometimes affecting service delivery
•    Unstaffed and unfunded posts due to a lack of funds – approximately 20 vacant posts
•    Due to transformation imperatives junior members with potential and not the ideal level of
     experience will only gain experience over time
Corrective Measures
•    Re-structuring of the DLSD to create additional posts is a priority
•    Amendment of the Personnel Management Code in order to make it flexible and introduce
     incentives to retain skilled staff
•     Ensure that Mobility Exit Mechanism is not afforded to members to the detriment of Division, were it
    is unavoidably succession planning would be utilized to ensure skills are transferred.
•    Funds have been requested through the Departmental Planning and Budgeting Committee to
      fund vacant posts
•    Optimal utilisation of available personnel including Reserve Force members to ensure service        9
      delivery
                                       Force Employment

Par 2.3: PCD supports the rejuvenation strategy to built a young dynamics force and to build the
capacity of junior leaders. The Committee requested a presentation on the plan of action with
regard to build the capacity of the SANDF

Rejuvenation of the SANDF
• Background
  • DOD HR Strategy 2010 requires the rejuvenation of both the Regulars and Reserves
  • The MSDS provides rejuvenation from the bottom-up
  • Two MSDS imperatives:
     •   Rejuvenation
     •   Development opportunities for the youth
  • Rejuvenation results are demonstrated eg annual Ex SEBOKA
  • In terms of the 2007 Programme of Action for 2007, intensification of force rejuvenation lead by the
  DOD is a priority that has been identified within the JCPS Cluster
MSDS Growth Path


                             MSDS Intakes

             5000
             4000
             3000
     Total




             2000
             1000
                0
                     2003   2004     2005     2006   2007

             Total   2177   1967     4319     4733   4518
                                    Intakes
Improved Rank-Age Compliance of Privates



      30000

      20000

      10000

           0
               2001   2002   2003    2004   2005   2006   2007
   Ptes 18-24 1779 1450 2513 3475 6225 8382 12239
   Total Ptes 19480 17626 17059 16503 18236 19660 22705

                        Ptes 18-24    Total Ptes
             FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06

                          Force Employment (continued)
Rejuvenation Sustainability and Personnel Flow
•   Up to now, rejuvenation concentrated on the Regular‟s rejuvenation requirement
     •   6 631 (75,1%) out of 8 463 MSDS members received Regular contracts (Core Service
          System)
     •   Only 1 233 potentially available for Reserves
•   The DOD can sustain annual MSDS intakes of 4 500 (inflows must balance outflows)
•   Insufficient capacity (training, accommodation, instructors, operating budget) limit intake size
•   Larger MSDS outflows to Reserves will enhance capacity for bigger intakes (not over short
    term
Planning Considerations
•   Size of DOD HR composition is a function of force design, force structure, post
          establishment & sustainability
•   Revised force design calls for 85 375 full-time HR
•   Will be staffed by:
     •    70 000 Regulars (uniformed and civilian)
     •   15 375 MSDS
•   MSDS intakes will therefore have to expand to 7 687 per year, of which 4 500 per year is
    currently funded                                                                                   13
         FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06

                    Force Employment (continued)
Planning Considerations (continued)
•   Appointments of MSDS members in the Regulars (Core Service System) should not exceed
    the annual personnel outflows in the Regulars
•   Approx 50% of each MSDS intake should therefore be appointed in the Reserves after
    completing MSDS service
•   As MSDS outflows to the Reserves increase, the size of intakes will progressively increase
Conclusion on Rejuvenation
•   Optimal SANDF rejuvenation throughout all ranks is a continuous endeavour and dependant on:
     •   Changing force design & structure requirements
     •   Natural outflow of members
     •   Training capacity
     •   Career management
     •   Sustainability of new intakes
•   Significant progress has already been made to rejuvenate the junior ranks, especially Privates
•   Rejuvenation will continue at the rate of 4 500 new members per year until the flow of MSDS
    members to the Reserves increase or the Defence Budget can be supplemented for additional
    capacity
                                                                                                     14
                 FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06

                                         Landward Defence

 Par 2.4: PCD throughout supports the allocation of more funds towards:
C Army expressed his appreciation to the PCD for supporting more funds to ensure a viable SA
Army able to execute Government Objectives
Affordability of the SA Army – Reprioritising vs the Operating Budget
• Personnel budget absorbs the bulk of the SA Army’s budget
• Actions implemented by the SA Army
   • SA Army has initiated the works regiment concept which is now being explored by the DOD
   • SA Army is investing limited operating funds available for training mainly on MSDS intakes
     and basically no continuation training for the Regular Force (already trained) is done
   • Members are trained to the level required for Peace Support Operations and funding for
     conventional training is limited to a bare minimum to only retain a small core growth
   • The SA Army is “cannabalising” its Prime Mission Equipment to reduce maintenance costs
   • SA Army actively participated in the DOD Workgroup on the Update of the White Paper on
     Defence 2006
   •DOD approach will be to engage the determinant clusters so as to solicit support for additional funding for
   rejuvenation of the landward Defence Programme with specific emphasis on the replacement of the prime
   mission equipment.                                                                                  15
                  FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06
                                    Landward Defence (continued)


State of Facilities
• SA Army is to a large extent dependent on PWD for maintenance of facilities (major works)
• To address basic Occupational, Health and Safety and MSDS requirements approx RB1,6 is
  needed. SA Army provided from own operating funds RM20,6 for day-to-day maintenance and
  RM24 for larger projects
Prime Mission Equipment
• Limited funds available concentrated on maintenance of operational deployable vehicle and
  weapon systems. Additional RM150 received in FY2006/07 assisted to a large degree
• SA Army invested heavily in acquisition of simulators for driver training and weapon systems
  (Armament Acquisition Projects as well as from operating funds)
• SA Army in continuous liaison with Joint Operations Division to acquire more funds for
  maintenance of prime mission equipment returning form operational deployments
• SA Army participating in DOD process of reprioritisation of the SCAMP and has finalised its
  approach to and plan for the Modernisation of Landward Systems




                                                                                                 16
                FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06
                                 Landward Defence (continued)

Ammunition
• Joint Operations Division will refund the SA Army for the replacement of ammunition used in
  external deployments. RM139 will be provided over a period of time. Approximately RM40 will be
  received in FY2007/08
• Joint Operations will refund any ammunition replacement in future
• In December 2006 the SA Army provided the DOD with a letter from DENEL, stating their readiness
  and ability to produce ammunition to the value of RM300 should the order be placed before
  31 March 2007
Revitalisation of SA Army Technical Support Corps (TSC) Capability
• SA Army allocated RM54 to the revitalisation of the SA Army TSC from the RM150 additional
  allocation for the maintenance of vehicles
• SA Army reestablishing the TSC system in the SA Army and the MOD has approved the transfer of
  the TSC Training Centre and TSC Reserve Units to the SA Army with effect of 1 April 2007
Retention of Skilled Personnel
• The SA Army initiated an incentive to retain scarce skilled personnel. It has been accepted by and
  is presently being implemented within the DOD. However, the SA Army does not have the funds
  to implement the initiative in the SA Army
• The SA Army has substantial increased its funding for advanced and technical training at external
  institutions                                                                                  17
                FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06

                                        Air Defence

Par 2.5: PCD throughout supports the allocation of more funds towards
Retention of Skills and Experiences Shortages
• SA Air Force is establishing a three-pillar approach to resolve retention issue in medium to
  long term
• Pillar 1. Improved recruitment and selection ensuring only candidates seeking a long-term SA Air
  Force career. Will address current phenomenon where members join the Air Force to acquire
  scarce skills and then move to alternative employment at the earliest opportunity
• Pillar 2. Improved career management of members removing obstacle to self-fulfilment. Members
  will work in an enabling environment, conducive to a high level of personal development,
  satisfaction and performance. It will make members less likely to leave the organisation in search
 of alternative employment
• Pillar 3. Remuneration at a level where specialised members are fairly and reasonably
 compensated for their specialised skills, and where the difference between military and
 commercial remuneration is not so disparate that members wish to change careers for financial
 benefit only. Operating budget is being significantly depleted to fund improvements in incentive
 schemes to retain scarce skills. An intervention at the level of National Treasury and the
 Department of Public Service and Administration is required to find a solution


                                                                                                18
                 FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06
                                     Air Defence (continued)
Deteriorating Aircraft Systems which affect Training of Personnel
• Detailed plans addressing critical system integrity issues are being implemented. Some examples
are:
   • A Policy Proposal, for funding an avionics upgrade on the Astra basic training aircraft will be
     presented at the June 2007 Departmental and Budgeting Evaluation Committee
   • A proposed holistic approach to resolve the requirement for air transport affecting both the
     B707 and C130 systems, is due to be presented to the Operations Staff Council in the near
     future
   • The Cessna 185 system, presently not maintaining flying status, will more likely be phased out
     earlier than the planned date of 2009. Alternative solutions to meet operational requirments are
     being considered, such as utilising the Air Force Reserve Squadrons and the C208 (Cessna
     Caravan) fleet to take over the Cessna 185 functions

SA Air Force Force Preparation and Force Employment Funded at Cost of Longer Term Need
• A number of initiatives are in progress to improving resource balancing in the SA Air Force
    • An example is the present approach of meeting basic helicopter flying training requirement
      through outsourcing the training at a greatly reduced cost and with excellent results
    • A study has been completed to present the first phase of basic flying training at a low-cost,
      side-by-side, basic flying training. This will relieve the pressure on the Astra fleet, allowing the
      SA Air Force to address some of the longer-term system integrity requirements.
• Initiatives are underway to reduce the footprint and cost drivers of the Air Force by amalgamating,
  relocating or rightsizing of units and functions. Eg the possible move of the Air Force Gymnasium
  from it’s present dolomite infested location to the Boston facility at Hoedspruit (presently
  partially utilised by the SA Police Service)                                                        19
                                            Maritime Defence


Par 2.6: PCD supports the integration of the Strategic Defence Packages (SDPs) and the allocation of more
funds to retain the technical skills and expertise of personnel in the SA Navy
Integration of SDPs
• SA Navy welcomes support in ensuring the SDPs receive appropriate attention to be fully
  integrated in the Navy
• SAS AMATOLA and SAS „MANTHATISI commissioned into the SAN during FY05/06
• Additional funds (RM26) received during this period for integration, utilised for test equipment,
  spares, quayside pontoons and certain contractual obligations
• SA Navy still learning with regards to SDPs and all aspects of the integration
• Main cost driver is support contracts and spares for these vessels
Retention of Technical Skills and Expertise of Personnel
• SA Navy did not receive sufficient funds for retention of expertise.
• In FY2000 introduced incentive schemes for retention of combat officers and technical personnel
• From 2000 to end FY2005/06 contracts awarded to combat officers and 623 technical personnel. This effort
will be continued in the future
• SA Navy cannot meet remuneration paid by private sector – always loss of skilled personnel
• SA Navy decided that 40% of its allocation to operating the SA Navy and 60% to personnel costs –
  ratio will ensure keeping ships at sea
• DOD Instruction 66/67 – “remunerative and compensatory allowances” for scarce musterings will
  assist in retaining personnel
                FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06

                                       Military Health Services


Par 2.7: PCD throughout supports the allocation of more funds towards
Rejuvenation of the Health Care Professionals on All Levels
•    The community service system provides SAMHS with healthy flow of young (new)
    health
     professionals
•    Support of PCD requested in improving remuneration of all health professionals in the
    military to
      be able to retain best candidates for the DOD as SAMHS cannot compete with private
    sector
      remuneration for health professionals
•    The MOD made a principle decision:
     •   Health professionals in uniform shall receive an allowance for being deployable
     •   To add an incentive that is not available to the public health sector
•    Final decision pending and funding of allowance needs to be sourced with support of
    PCD


                                                                                             21
               FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06
             Funding for Health Equipment (Static and Mobile
Funding for Health Equipment (Static and Mobile)
• SAMHS Logistic Master Plan informs funding and equipment for static infrastructure.
  Acquisition
   through structured replacement cycle allowing for reprioritisation
• However, the SAMHS does not sufficient funding for health equipment renewal to a
  world class standard
•    SAMHS has limited capabilities with regard to mobile hospitals with only one
    functional. There is a critical need for additional field hospitals to meet employment
    requirements
• Funding implications occur where health equipment require specialised localities (x-
  ray rooms) or structural changes to accommodate new generation health equipment.
  Additional funding
  required for facilities although health equipment remain interdependent
• DOD will engage the determinant clusters so as to mobilise support for additional
    funding for rejuvenation of the Millitary Health Support Programme with specific
    emphasis on the replacement of the prime mission equipment and infrastructure.
                                                                                         22
                                         Defence Intelligence

Par 2.8: The lack of Personnel and also the location of the Defence Intelligence Headquarters need urgent
attention. The Committee requires a briefing within 2 months on whether the Intelligence Headquarters has
moved
Lack of Personnel
• Challenge. Continued loss of experienced personnel to other Departments
• Measures Taken
   • Recruitment of members from MSDS (at the end of their MSDS period) during FY06/07. Twelve SA Navy
   members and applications for security clearances put in process. Appointment only after positive outcome of
   security clearance.
   • Recruitment of graduate MSDS members during FY2007/08
   • Recruitment of under-graduates from South African Universities during the FY2008/09
Location of Defence Intelligence Headquarters
• Relocation of Defence Intelligence Headquarters was handed to National Department of Public
  Works (NDPW) under the RE-KGABISA project for option analysis
• This avenue exceded the agreed deadline and project was subsequently handed to NDPW to
  manage the option analysis through its in-house capabilities. Result is expected to be completed
  by 15 April 2007.
• Defence Intelligence confirmed preferred option is SA Defence Intelligence College (RADCLIF)
• Date for briefing to be determined (June/July 2007)
                                         Joint Support
Joint Support Office
Par 2.9.1: The Committee need a briefing from the Department with regard to Information and Communication
Technology (ICT) obsolescence to which extend this is a challenge to replace this equipment
Information and Communication Technology (ICT) obsolescence
• Oct 06 DOD promulgated Information Strategy (embracing mainly information superiority and
  security), a DOD Enterprise Information Systems (DEIS) framework
• DEIS Master Plan to be approved in March 2007, thereafter projects will focus on procuring
  effective, optimised, integrated, secured solutions
• On obtaining funding for implementation of DEIS Master Plan the challenge to replace
  obsolescent equipment will be addressed
DOD Logistic Agency
Par 2.9.1: The Committee also need an update on the Wahlmanstahl land claims
Update on Wahlmanstahl land claims
• DOD and the claimants agreed on the area to be restored
• Agreement by the DOD was communicated to the land claims commission (Gauteng and NW
  Province)
• Land Claims Commission now in the process to finalise administration process in order to
  transfer the land to the claimants
                  FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06

                                         Joint Support (continued)

DOD Logistic Agency (continued)
Par 2.9.2: The Committee required feedback within 3 months with regard to the Asset Management
    system which is not fully compliant with General Recognised Accounting Practice (GRAP)
Accrual Accounting
•    Senior Asset Management team established and policy being finalised
•    Discussions with National Treasury (NT) IFMS programme to ensure that DOD and NT
     technical and software requirements are the same
•    DOD to apply to NT (clearing house) for any further enhancements to present systems
•    Will only be able to account according to GRAP with combined implementation of IFMS and
     enhanced DOD systems
•    Implementation scheduled from 2008 to 2012
Par 2.9.2: The Committee recommends an oversight visit to investigate the following two issues:
DOD Air Supply Unit – Deteriorating Facilities and Lack of Equipment
•    Vacant facilities identified in Thaba Tshwane to relocate DOD Air Supply Unit
•    Cost analyses has been done by NDPW for repair of the vacant facilities
•    Approximately RM5 is required
•    On securing funding DFSM/Army Office, NDPW can start repair, followed by relocation of unit
                                                                                                   25
•    Date for oversight visit to be determined
                              Joint Support (continued)
DOD Logistic Agency (continued)
DOD Restructuring Process Materiel/Logistics

• Out of several alternatives developed, the following was approved
• Chief of Acquisition is to transform into Chief of Matériel responsible for
   • Departmental governance, risk and compliance management authority for matériel
   • Capacitating Secretary for Defence's statutory functions
   • Continuing to manage acquisition
• Chief of Logistics is to transform into Chief of Staff Logistics
   • Departmental functional authority for logistics (including delegated procurement)
   • Capacitating C SANDF‟s statutory functions
• Progress in finalising implementation arrangements for Option 2A has been slow
•A Request For Information (RFI) to test the market developed
   • Objective - to seek information from potential service providers able to assist DOD
     in development, implementation and validation of integrated and synergistic Asset
     and Supply Chain Management continuous improvement programme
   • RFI will be issued as soon as possible
                             Joint Support (continued)

Human Resources Support Centre
Par 2.9.3: The Committee needs to know who qualifies for the Non-Statutory Force Pension. How
many outstanding applications are there and what are the criteria for applying. It is stated that 11
558 applications were forwarded to the GEPF and that 500 names were verified for the
administration of the Military Veterans. The Committee will liaise with the Department in this
regard. The committee further recommends that these options should be advertised and that more
imbizos should be held so that more beneficiaries are reached.
Non Statutory Force (NSF) Pensions Dispensation (Report and presentation available)
• Who qualifies. Former MK/APLA member who entered into employment agreement
  with DOD or any State department either as a Public Service Act Personnel (PSAP)
  member or as a Defence Act (uniform) personnel member through integration or
  normal personnel acquisition process
• Criteria for Applying
   • Non-statutory Force service
   • The period between the date on which the NSF members joined their respective
     former forces and the date of their taking up employment with DOD
   • If joined former NSF before age 16, the service will start from age 16
                                Joint Support (continued)
NSF Pensions Dispensation (Continued)
• Outstanding Applications
  • Numbers Integrated


               Serving Members    12 091
               Exited Members     9 280
               TOTAL              21 371


  •Exited Members

              Exit Type          Qualifying     Payments by   Outstanding
                                 members           GEPF        Payments
      Retired                       742             230          512

      Deceased                     2 763            380          2383
      Package                       409              82          327
      Resign / Discharge           5 366            810          4 556
      Total                        9 280            1 502        7 778
                   FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06

                                          Joint Support (continued)
NSF Pensions Dispensation (Continued)
•   Outstanding Applications
    •    Challenges
          •   Members without valid addresses
               •   Living members – 569
               •   Deceased members – 318
               •   Liaison took place with home affairs – very little results
          •   Letters sent to units - 62 members responded
          •   NSF joining dates disputes – 2 640, resolved – 601
          •   Project not funded for FY2007/08 and indicated as a financial risk
    •    MOD requested for political intervention
•   PCD Recommendations
    •    Placing of Adverts. No funds were available in FY06/07 to place adverts
    •    Holding Imbizos. Road shows conducted from November 06 – Feb 07 distributing NSF
            pension quotations for serving members. Conducted 3 briefings on NSF pension benefits
        and solicit assistance in tracing outstanding beneficiaries. Traced 62 beneficiaries with assistance of
        Military Veterans Associations. Imbizos with Military Veterans Associations planned for
          FY07/08
    •    Meeting with MKVA. Meeting on 11 Oct 06 with representatives from MKVA requesting                   29
         assistance in tracing beneficiaries. (List provided) To date no feedback received.
              FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06


                               Acquisition Plan
Par 2.10 The Committee needs a briefing on the acquisition plan of the Department on the
   successful identification of the preferred bidder and approvals as well as initiation of
   negotiations with regards to the supplier of the Tactical Intelligence Systems
• A multi-source tender process is utilised for the selection of the bidder.
• AASB approval obtained in February 2007 wherein the preferred bidder is
  Denel Optronics as a main contractor and Aerosud as the mechanical
  subcontractor.
• Integration of sensors into Cessna caravan will occur in the second quarter of
  2007.
• Development of data link by the end of 2007.
• Delivery of 3 additional sensors early 2008.


                                                                                              30
                               Report of the Auditor General
Qualification: Corrective Measures
Par 3.4. There should be an improvement on
Housing Loans and Guarantees ( Redemption of State Guarantees and Management of Credits on
the Guarantee Account (130401)
• Processes to redeem guarantees issued before 1 January 2001
  • Obtain PERSOL reports and audit all files
  • Letters to financial institutions with follow ups
  • Rectify PERSOL data
  • Note registers and compile statistics
  • Letter to member at unit
• Submissions to Directorate Financial Support Service (DFSS)
  • Audit files with credit on account – Ledger 13401
  • Letters to financial institutions with follow ups
  • Prepare submissions
  • Payment by Directorate Personnel Payments final pay section or DFSS
• Progress made
  • Redeeming of guarantees – total of 2406 cases with 6 sections already audited
  • Reduced credits on Ledger 130401 – total of 681 cases outstanding. RM5 055 795 credit
    reduced to RM2 699 264 by 2 February 2007
  • Work through all files by 15 June 07
                          Report of the Auditor General (continued)
Rank Review Audit
• June 2004 AG reported shortcomings of 384 NSF members
• Phased action plan implemented
   • Phase 1 - Determine correct name list of all members - completed
   • Phase 2 - Centralise rank review files and ensure all documentation are filed - to be
     completed by 30 April 2007
   • Phase 3 - Avail all files with updated name list to AG
   • Phase 4 - Determine whether all approved reviews have been implemented
   • Phase 5 - Integrate rank review files with members‟ master files
• During Phase 1 and 2 it was found that
    • Final list comprised of 383 names and not 384 as referred to
    • Of 383 some 338 members benefited from the rank review and were re-ranked
    • Total of 28 members‟ services terminated prior to 1 April 2003. They did not benefit
    • Total of 11 members promoted to higher ranks prior to and some subsequent to 1 April 2003
    • Total of 15 members initially recommended for certain appointments/promotions were
      changed at very late stage eg recommended for officer appointment – refused – promoted to
      WO1 rank
    • Re ranking promotions and appointments done wef 1 April 2003. Members‟ services terminated prior to 1
    April 2003 and/or promoted prior/subsequent to 1 Apr 2003 no longer form part of audit
• Challenge
    • Biggest challenge at present is to rebuild a set of files that can be audited
    • Task to be completed by end of April 2007
                   FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06

                                 Report of the Auditor General (continued)

Capturing of Leave (Management of Leave Administration)
•   Deficiencies
    •    Leave applications not captured electrically
    •    Attendance registers not completed or reconciled with leave records
    •    Supporting documents not attached to sick leave applications
    •    Leave registers not utilised as prescribed
    •    Leave application forms not filed on leave files
•   Corrective Measures
    •    In-post training to leave clerks on unit level – Mar to August 2006
    •    Leave manuals, electronic input documents and training slide show placed on DOD Intranet for
         easy access to all levels
    •    Instruction dated 26 September 2006 disseminated to Services and Divisions to take corrective actions
        and institute corrective measures
    •    Disseminated DOD Instruction on Management of Work Attendance (Co-signed by Secretary for
         Defence and C SANDF) to Services and Divisions in January 2007
•   Further Actions Planned
    •    Continued lectures to learners on Joint Senior Command and Staff Programme
    •    Continued presentations to units on work attendance and leave administration
                                                                                                           33
    •    Staff visits to inspect units with negative audit reports
                        Report of the Auditor General (continued)
Qualification: Corrective Measures
Par 3.4. The Committee needs a briefing in correlation to the 60 month time frame needed for the
Personnel expenditure. Unrealistic establishment referred to on page 60 in the Annual Report
presentation. The PCD does not accept such a long time frame as a remedial measure
Unrealistic Post Establishment
• The time frame of 60 months as indicated in the Annual Report presentation to address
  the “unrealistic establishment” is not correct
• Remedial actions have been instituted in order to address the issue as a matter of great
  urgency
• This matter emanates from the Auditor General Report on the FY 2005/2006 Annual
  Report (See Reference Statement)
• Reference Statement
   The Auditor General Report on the FY2005/2006 Annual Report states that there has been an
   increase in the number of approved posts from 95,088 in 2005 to 102 048 in the reporting year, of
   which 77,858 posts were filled. Based on these approved posts, the achievement of the 2010 goal
   of 70,000 approved posts does not appear to be realistic. (FY04/05 – 05/06 Audit Findings)
                        Report of the Auditor General (continued)

Current DOD Challenges
• Reduce SMCS posts to Defence Review Update 2006 figures
  • SMCS total                               103,552
  • DR Update                                 85,375
  • Administrative student posts               9,925
  • Reduce SMCS by                            8,252


• New SMS Total
  • DR 2006 total                   85,375
  • Administrative student posts     9,925
  • Total                                    95,300


  • Funding available                        78,648
  • Funding shortfall                         6,727
                FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06

                          Report of the Auditor General (continued)
Remedial Action
•  Delete all duplicate structures (staffing purposes) +/- 200 – 30 March 2007
•  Delete posts on closing down units = 2000 (All Services & Divisions) – 31 May 2007,
    continuous thereafter
•  Delete Transformation and Restructuring Programme (TRP) posts not required +/- 2000
    (SA Army) – 30 March 2007
•  Delete posts not filled for last 5 years, excluding designated scarce skills musterings –
    30 March 2007
•  Issue DOD Plan Instruction by 31 March 07 to reduce 8,252 redundant posts on the
    SMCS as follows :
   • Apply DR06 post establishment baseline targets for each Service and Division as per
       parameters of the Force Design Model – 15 March 07
   • Analyse rank /salary ratios and rank/age targets within each Service /Division with
         the aim to curb rank inflation – 15 Aug 07
•   Ongoing review of organisational design of Services and Divisions to verify the most
     relevant and affordable structures
•   Ongoing execution of the management of DAP and PSAP on the SMCS ito CHR
     Instruction No 06/2006 dated 30 June 2006 -Services/Divisions at monthly HR Board

•    Actively identify posts not being utilised - DIMS through monthly Structure Control       36
     Board (SCB).
                         Report of the Auditor –General
There should be an improvement on the following issues:
Qualification : Corrective Measures – Travel and Subsistence
Travel and Subsistence Action Plan
Reasons
     No interface between the FMS and PERSOL system – reliant on a manually driven
    process.
Measures and Completion Dates
    5 members already appointed, 2 more to be appointed before June 2007.
    System Interface between FMS and PERSOL to be completed in 2007/2008.
    The CMIS Division is currently in the process of amending the expenditure control
     systems which will commence with the Personnel Payments system.
    Financial year balances on main ledger account to be reconciled by 31 Mar 08.
                  Report of the Auditor-General
Departmental Revenue Action Plan
There should be an improvement on the following issues:
Qualification : Corrective Measures – Departmental Revenue
            FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06


                                 Revenue
Revenue                         Management
 Policy



             Revenue                                Capturing on PERSOL –
             Budget                                  Force number related


                                 Revenue             Capturing on
Tariffs &                        Collection          CRV system
  tariff
structure
                                Accounting            Capturing on medical
                                                        Debtors System
 NT Approval
 & distribution                 Dep into NRF           Reporting in Annual
                                                       Financial Statements
                                                                          39
     FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06


REVENUE MANAGEMENT

FMS Enhancements
 –   Technical Investigation completed by 25 Oct 06.
 –   Documentation and cost estimate submitted.
 –   Client Approval - Done.
 –   CMIS Ratification - Done.
 –   Programming completed 23 Feb 07 (Done).
 –   Testing 26 Feb 07 to 9 Mar 07 (In process).
 –   Implementation during Apr 07 (On schedule).


                                                           40
       FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06



REVENUE ACTION PLAN
• Formalise responsibilities – 30 Nov 06 – DODW impact.
• Amend FMS to enable capturing of revenue budget – 31 Dec 06
  – Completed.
• Enhanced Cash Receipt Voucher Systems – 31 Mar 07 – In
  process.
• Improved budget rules – 31 Jan 07 – Done (Continuous).
• Staffing of vacant AD Revenue Budget post – 31 Jan 07 – In
  process.
• Approved DOD Tariff Structure and Tariffs for 07/08 – 31 Jan 07.
• Distribution of approve tariffs – 15 Feb 07.
• Amended PERSOL System to allocate salary deductions to
  specific series – 31 Mar 07 – In process.
                                                                41
        FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06



REVENUE ACTION PLAN (CONT)
•   Update mainframe systems with new tariffs – 31 Mar 07.
•   Item 90 SCOA compliant – 100%.
•   Approved Tariff Management DODI – 30 Apr 07.
•   Approved Revenue Management DODI and JDP – 30 Apr 07.
•   Request revised tariff structure and tariffs for 08/09 – 1 Sep 07.
•   Submit revised tariff structure and tariffs to NT for approval – 7
    Dec 07.
•   Distribute approved tariff structure and tariffs within DOD – 15
    Feb 07.
•   Call for inputs to revise and update existing Revenue and Tariff
    Management DODIs and JDPs – 22 Feb 08.
•   Ensure Item 90 remains SCOA compliant 31 Mar 08.
•   Update mainframe systems with approved tariffs – 31 Mar 08.
                                                                     42
          FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06

               Report of the Auditor-General
    Approved Deviation – Software and other intangible assets
                movement schedule Action Plan
• Armscor has developed a draft IP Management Practice Note to
  implement DOD IP Management Policy.
• This team is also responsible for the establishment of an
  electronic IP Database.
• Armscor is responsible for the maintenance of the database
  whilst an oversight function within the DOD will monitor the
  accuracy and completeness of the database.
• The envisaged target date for implementation of a manual IP
  database is 1 April 2007 whilst the envisaged target date for
                                                                  43
  implementation of an electronic IP database is 1 April 2008.
            FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06

                        Report to the Auditor -General



Par 3.4. The Committee needs a briefing in correlation with regard to the 60 month
   time frame needed for the Information systems audit referred to on page 60 in the
   Annual Report presentation.
•    The presentation made on the 12 September 2006 Audit referred to the IFMS
    implementation timeframes. These timeframes are from the National Treasury’s IFMS
    implementation plan. The IFMS implementation is a multidsciplinary project chaired by
    the National Treasury where all departments are represented.




                                                                                        44
           FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06



                              Emphasis of Matter Items 05/06



   Par 3.5 The Committee agrees that improvement is needed for physical
                                  Asset
                    Action Plan: For Physical Asset Movement
With full cognisance of the NT moratorium on Information Systems with a financial implication the following can
be presented:
• A bridging tool between SCOA & NATO categories was developed in consultation with National
   Treasury. Found to be successful for budgeting for groups of items but not for the detail
   required when reporting.
• The DOD and National Treasury are drawing up an Asset Management Plan which will address
   this anomaly within the next three years.
• The DOD will approach the IFMS Clearinghouse of the GITO council, to carry out this
   enhancement to solve this matter for the 2007/2008 financial year.
• The Assets Register accounted for most assets in terms of asset description and quantities and
    not monetary value. (Total Asset Value in Monetary Value is impossible at this stage).
• Reporting requirement in terms of SCOA are different from the DOD codification and
    accounting categories based on NATO prescripts.




                                                                                                                  45
            FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06



                               Emphasis of Matter Items 05/06

    Par 3.5 The Committee agrees that improvement is needed for Software
                         and other intangible assets

      Action Plan for management of software and other tangibles
• Armscor has developed a draft IP Management Practice Note to implement DOD IP
    Management Policy.
•   This team is also responsible for the establishment of an electronic IP Database.
•   Armscor is responsible for the maintenance of the database whilst an oversight function
    within the DOD will monitor the accuracy and completeness of the database.
•   The envisaged target date for implementation of a manual IP database is 1 April 2007 whilst
    the envisaged target date for implementation of an electronic IP database is 1 April 2008.




                                                                                                  46
    FEEDBACK ON PCD REPORT: DOD ANNUAL REPORT FY2005/06


                   Conclusion

• QUESTIONS AND DISCUSSION




                                                          47

								
To top