Department of Women in the Presidency Quarter 2 performance

Meeting report

A Committee Staff Member gave a summary of the Department’s 2nd quarter report. She indicated that the Department received R206.2 million for the 2017/18 financial year, of which R78.3 million constituted transfer payments to the Commission for Gender Equity (CGE). This left the Department with an operating budget of R127.8 million. She further highlighted that the Department has as at 30 September 2017 spent 47% of its budget. She advised the Committee to consider that the Department has not overspent in the 2nd quarter; in fact it has spent less than anticipated. The Department has under spent by R4.6 million in Programme 1 and by R4.9 million in Programme 2. Midway throughout the financial year the Department has only spent 26% of Programme 2’s budget. This was concerning given that Programme 2 was responsible for the facilitation and promotion of socio-economic empowerment and gender equality. The Department was awaiting reasons for its spending deviations and has reported 15 instances of irregular expenditure amounting to R2.2 million. This was a substantial increase from two instances in the 1st quarter, which amounted to R432 000. She advised that the Committee asked for further clarity on this matter.

The Department has indicated that as a means of mitigating poor performance, programme managers have been served with consequence management letters for the 2nd quarter. Out of the 27 targets planned, only 41% were achieved, while 59% were not achieved. Some of the key targets that were not met related to the Auditor-General’s audit findings for 2016/17 – various divisions are still in progress with implementation for the corrective measures. Only 99% of invoices were paid on time; this is an improvement from the 1st quarter where only 63% of invoices were paid within the 30 days. The report on economic empowerment of women in the nine-point plan was still outstanding from the 1st quarter. The analysis report on preliminary findings of National Dialogues on Violence against Women and Children has not been submitted by the Department.

In terms of the Budgetary Review and Recommendations Report (BRRR) 2017 tracking framework, the Committee should consider and ask what contingency plans the Department has in place to deal with the unmet targets before the end of the 2017/18 financial year, and of the 80% targets which were achieved in the 2nd quarter and 3rd quarter, which were outstanding in the 1st quarter; how many did it actually amount to if only 19 were unmet. Also, whilst the Department indicated what it intended addressing and the links to the various Medium Term Strategic Framework (MTSF) outcomes, it was unclear 6 months into 2017/18 how exactly it was firstly addressing the financial and economic exclusions of women, gender mainstreaming and violence against women and children.

The Department had submitted an erratum to the 2017/18 Annual Performance Plan, dated 7 February 2018 to the Clerk of Papers. The erratum indicated that the mid-term target for 2017/18 in terms of the policy framework on provision of sanitary dignity to indigent girls and women developed and implementation initiated has been replaced with a Draft Framework for Sanitary Dignity. The reason cited for the change was that the target needed to be revised “in order to align with the new Cabinet decision imperatives”. She advised that the Committee asks what exactly the new Cabinet decision imperatives are that resulted in an erratum to the APP target on the policy framework, which stakeholder had the Department consulted with relating to the draft policy framework and what was the nature of the research the Department intend undertaking, given the resources constraints the Department was facing.

Ms Neliswa Nobatana, Committee Secretary, explained the process of submitting an erratum saying an erratum to the APP must be tabled in the National Assembly for approval if the correction was made to the actual performance of the Department. However, an erratum can also be sent to the Committee if it contained revisions of the actual report, or if there are actual financial corrections that were made in the report.

The Committee Staff Member continued highlighting other key issues indicating that the Management Performance Assessment Tool (MPAT) report was developed but it was still unclear what key areas MPAT will focus on. The Department merely indicated that the internal audit projects were not achieved due to the delays in the process collating the information required, and the reasons for the deviation for the audit findings not being achieved did not suffice in their report.

Discussion

Ms P Bhengu (ANC) asked what the overall performance of the Department was for the 2nd quarter

The Committee Staff Member replied that the Department achieved only 26% of their planned targets and the budget was not being spent on the Department’s core activities. The Department may not reach its targets with the remaining budget. Overall, the Department has not improved and there are major concerns whether it would improve in the 3rd quarter.

Ms Bhengu asked if the position of the Chief Financial Officer has been filled.

The Committee Staff Member said the Committee should pose the question to the Department.

Ms T Stander (DA) requested that the Department only present the targets that were not achieved because the meeting started late and members of the DA had another meeting to attend to.

Briefing by the Department of Women in the Presidency

Ms Val Mathobela, Chief Director, Department of Women, said out of the 27 planned targets, 11 were achieved and 16 were not achieved. The 2nd quarter’s performance was the same as the 1st quarter despite there being more targets in the 1st quarter. Thus, programme managers have been served with consequence management letters in the 2nd quarter in order to improve the performance in the 3rd quarter. Strategic management convened programmes during the compilation of the first draft of the APP 2017/18 to ensure the SMART principle and alignment for the achievements of the target, which was followed by the departmental strategic planning session in November 2017. Further, 80% of the targets that were not achieved in the 1st quarter were achieved in the 2nd quarter and the 3rd quarter.

Programme one

Out of the 13 planned targets, the Department only achieved 7 targets and 6 targets were not achieved. The Department did not meet its 50% target of its internal audit projects due to delays in the process of collating information required for the audit process. There are two outstanding internal projects that were due to be finalised in the 2nd quarter. Only 43% of the planned target of 95% of internal audit recommendations made in the previous quarter has been implemented. The reason for the deviation was that some of the divisions responsible for the implementation are still in the process of implementing the corrective measures. A follow-up audit will be performed monthly to ensure that management did not forget to resolve the audit findings. The target for the payment of invoices within 30 days was not achieved. From August 2017 only 3 out of 338 invoices were not paid on time due to incomplete supporting documents and late submissions of supporting documents. The Department did not maintain a less than 2% underspending against the spending plan as targeted.

Programme two

Out of the 6 planned targets the Department achieved only 17% of these targets. Also, out of the total budget of R16.520 million the programme spent only R4.268 million of its budget. Therefore, programme 2 has spent only 26% of its budget as at 30 September 2017. The progress report on the analysis of empowerment of women in the Nine Point Plan has not been submitted. The report was in the process of being approved. The Draft Women’s Financial Inclusion Framework was also not submitted, because the Department was awaiting its approval. The Gender Responsive Budgeting Framework was meant to be finalised during the 2nd quarter, however this target was not achieved. The Department said it deemed it relevant to firstly develop a business case in order to inform the development of such a framework.

Programme three

Out of the 8 targets planned 37.5% (3) were achieved and 62.5% (5) of the targets were not achieved. During the 2nd quarter the Department had not submitted any reports on the progress made on women’s empowerment in economic development. The Department indicated that the research was being outsourced – the service provider was appointed with effect 1 August 2017. The Draft report on gender communication and information resource was drafted late because the director responsible was only recently appointed. The Nine Point Plan reports were not submitted on time because the disaggregated data was not readily available and so the report was only completed in late September. The draft report will be finalised in the 3rd quarter. The Department is yet to develop a project plan for the monitoring reports on Outcomes 14. The project plan will be used to align work and focus areas as per the Departmental meeting.

Financial Performance

Ms Desree Legwale, Chief Financial Officer: Department of Women, said the Department’s actual expenditure as at 30 September 2017 is R96 532 million, which is 47% of the total budget. The total budget spent on the sub-programmes under Programme 1 is R40 007 million, which is 48% of the programme’s budget. Under Programme 2 the sub-programme spent a budget of R43 403 million, which is 46% of the programme’s budget. And Programme 3 sub-programme spent R13 123 million for the 2nd quarter.

The adjusted budget for the compensation of employees is R71.7 million, with an actual expenditure of R36 million. The overspending of R89 000 is due to contracts within the Department – the contracts ended in December 2017 and they were not renewed. The adjusted budget for transfers and subsidies is R78.4 million, with an actual expenditure of R39.4 million. The adjusted budget for goods and services is R52.2 million, with an actual expenditure of R19.9 million. The underspending of R4.4 million is due to an invoice for office accommodation amounting to R911 thousand for the month of September 2017. The Sanitary Dignity Indaba, Gender Responsive Budgeting Symposium and consultations initially planned for the 1st quarter will take place in the 3rd quarter. In terms of the capital expenditure, the adjusted is R3.8 million, with an actual expenditure of R1.1 million. The underspending of R2.1 million is due to a motor vehicle that was meant to be purchased, and there were delays relating to backup management software.

The funds for the Director position, that is additional to the establishment for Research Policy Impact, will be moved from Programme 1 to Programme 3 by means of virement at year end to cater for the excess expenditure. The invoice for the previous financial year for PRASA was paid in the current financial year due to continuous rejection of the banking details upon verification.

The Department collected revenue amounting to R15 000 as at 30 September 2017. The revenue was generated from insurance and garnishee collections on behalf of third parties and the sale of waste paper. There are reported to be 15 irregular expenditures amounting to R2.2 million as at 30 September 2017.

Discussion

Ms M Khawula (EFF) said the Department has not made any improvements from their 1st quarter in terms of developing women. The Department has spent millions on projects and programmes, but the empowerment of women and protection of children has not improved. The sanitary towels must be made available to the young girls and women living in the rural areas, and the babies must be provided with free nappies. Also, the percentage of women who are raped daily has increased, and so has the number of young girls that are being trafficked and sold as sex slaves. The Commission for Gender Equality (CGE) did a lot more for women and young girls than the Department and therefore the Department’s budget should be allocated to the CGE.

Ms Stander said the Department has not achieved its targets since it has been established. There are a number of cases relating to irregular expenditure which the Department has not yet reported. She asked the Department to provide the Committee with a detailed report on whether the individuals involved in the irregular expenditure activities have been charged, or were they fired and what the status was of each case. The Department was operating like an employment agency where the employees take home money, but do not perform their duties. She also asked that a detailed report be submitted containing the role and responsibilities of each of the members of the executive team. She corrected the Department saying that the change of a target in an APP should not be added to the erratum, but a revised target. Also, the Department has ignored the Committee’s recommendations – the Committee suggested that the Department signed a performance management contract with each employee, but it has failed to do so.

Ms Bhengu asked for clarity on of the 80% targets, which the Department noted were achieved in the 2nd and 3rd quarters from the 1st quarter. How many did the targets amount to if 19 targets were not achieved? She also asked about the delays of the report for the national dialogues that took place in Mpumalanga.

Ms Khawula asked why the Department needed to purchase a vehicle and what will the vehicle be used for.

Ms Welhemina Tshabalala, Deputy Director-General, Department of Women, replied that the Committee should be mindful that the Department did not implement. Cabinet had given the Department instructions to hold dialogues in the three poorest provinces; Eastern Cape, KwaZulu-Natal and Mpumalanga. The Department has gone beyond providing the sanitary towels, but it has also started producing the sanitary towels, and the women in these poor areas are a part of the production chain. The gender-based violence programmes has an awareness approach, where the relevant key stakeholders will be consulted, as well as the women who are also involved in drafting the report. She promised the Committee that the reports on all the dialogues and programmes will be submitted during the 3rd quarter.

Dr Clarence Tshitereke, Acting Director-General, Department of Women, asked if the Department can present its reports on the national dialogue and Sanitary Dignity Policy at the next meeting Committee meeting.

Ms Annette Griessel, Deputy Director-General, Department of Women, responded by saying under Programme 3 the Department wanted to create a position for a director who will be responsible for developing a comprehensive programme to tackle issues affecting young women. She added that the role of the Department was to coordinate work being done by other departments to ensure the advancement of women and children. Other positions that will be created under Programme 3 are Director and Deputy Director of Evaluation. These two positions will be tasked with evaluating the programmes aimed at empowering women and children.

Ms Mathobela responded to the questions on the erratum of the APP. She said the Department tabled their APP in March 2017 so that it would be able to implement their plans at the beginning of April. At the same time the Draft Sanitary Dignity Policy Framework was also tabled to Cabinet with the intention that it would be moved to the 3rd quarter as planned. However, the Cabinet Committee indicated that further work needed to be done on the Draft Framework. National Treasury’s framework for strategic planning indicated that should there be a strategic change in the APP; the Department must inform Parliament that it has issued an erratum. An erratum is not only used for correcting an error, it is also used to communicate a change in strategic direction.

Mr Mbazima Shiviti, Chief Director, Department of Women, said the motor vehicle was purchased for the Department to assist with the transportation of equipment that was used for the dialogues.

Ms Bhengu asked how the Department was going to provide strategic direction and frameworks to other departments when it has failed to develop the Gender Responsive Budgeting and Women’s Financial Inclusions Frameworks. 

Ms Khawula said the Department was paying a lot of money for renting office space. She suggested that the Department used the amount to purchase or build their own building.

Dr Tshitereke responded by saying the contract was entered into by the Department of Public Works on behalf of the Department. The contract was for nine years and 11 months; meaning that it will only expire in September 2020.

Ms Bhengu said she was concerned because the Department’s five-year term will end in 2019, yet they have not implemented any of their promised policies and frameworks.

Ms Khawula said the Department should ask the Department of Agriculture, Forestry and Fisheries (DAFF) to assist with programmes that would help empower women in the agriculture sector.

Ms Bhengu reminded the Committee that the Department did not implement, but monitored other departments to prioritise the advancement of women and children. She asked that the Department provided the Committee with a list of the achievements for each department they are monitoring.

Mr Tshitereke said the Department will provide the Committee with a summary of the performances from each department.

The Chairperson asked if the Department had any consultants.

Mr Tshitereke responded by saying the Department did not have any consultants, however there are researchers who are employed on short contracts in Mpumalanga, Eastern Cape and KwaZulu-Natal. He added that they are also working with the University of Cape Town (UCT) to conduct research on how women are benefitting or have benefitted from the incentives offered by the Department of Trade and Industry. He said they chose UCT because they have the technical competence to analyse the data and for the findings to be objective.

The Chairperson said she was not satisfied with the reasons given for why the Department chose UCT, while there are other universities that are capable of conducting the research as well.

Adoption of minutes

Minutes dated 4 November and 7 November 2017 were adopted without amendments.

The meeting was adjourned.