ATC151028: Budgetary Review and Recommendation Report of the Portfolio Committee on Women in the Presidency, dated 28 October 2015

Women, Youth and Persons with Disabilities

BUDGETARY REVIEW AND RECOMMENDATION REPORT OF THE PORTFOLIO COMMITTEE ON WOMEN IN THE PRESIDENCY, DATED 28 OCTOBER 2015.      
 

The Portfolio Committee on Women in the Presidency, having considered the performance and submission to National Treasury for the medium term period of the Department of Women in the Presidency and the Commission for Gender Equality, reports as follows:

 

  1. Introduction

 

  1. Mandate of Committee

 

The mandate of the Portfolio Committee on Women is to legislate, conduct oversight of the Executive, promote public participation, facilitate international agreements and review matters of public interest in relation to the Department of Women in the Presidency.

 

  1. Description of core functions of the Department and the Commission for Gender Equality

 

The mandate of the Department of Women, Children and People with Disabilities is to promote, facilitate, coordinate and monitor the realisation of the rights of women, children and people with disabilities. The Department’s strategic objectives included the following:

 

  • To contribute to the socio-economic and political empowerment of women, children and people with disabilities;
  • To improve universal access to development opportunities for women, children and people with disabilities;
  • To promote a society free of violence and abuse against women, children and people with disabilities;
  • To provide effective and efficient good governance for the realisation of the Department’s mandate.

 

Following the change in the mandate of the Department in May 2014, the Department of Women in the Presidency indicated that the new mandate was to to lead, coordinate and oversee the transformation agenda on women’s socio-economic empowerment, rights and equality.

 

1.3 Commission for Gender Equality

 

The Commission for Gender Equality (CGE) was established in 1996 according to the Commission for Gender Equality Act 39 (1996) to promote gender equality. In its efforts to monitor, lobby, educate citizens and encourage the equitable development of women and men, the CGE is compelled to undertake the following:

 

  • To monitor and evaluate policies and practices of organs of State at any level, statutory bodies or functionaries, public bodies and authorities, and private businesses, enterprises and institutions;
  • To cultivate an understanding of gender equality and the role and activities of the Commission through developing, conducting and managing information and education programmes;
  • To evaluate whether Acts of Parliament (existing or proposed), systems of personal and family law or custom, systems of indigenous law, custom or practices or any other law, will affect the status of women, and to make recommendations to Parliament in this regard;
  • To recommend to the National and Provincial Legislatures, any new legislation that would promote gender equality;
  • To investigate on its own initiative or due to a complaint, any gender-related issue;
  • To maintain close relations with institutions that undertake similar work, and to facilitate cooperation in handling complaints;
  • To interact with civil society to further the work of the Commission;
  • To monitor compliance to international conventions, covenants and charters related to gender issues, and to submit reports to Parliament in this regard;
  • To conduct research on gender-related issues; and
  • To consider recommendations, suggestions and requests made with regards to gender equality as received from any source.

 

Based on its Constitutional mandate, the CGE’s vision is to strive for “a society free from all forms of gender oppression and inequality”, while its mission includes to “advance, promote, protect, monitor and evaluate gender equality through undertaking research, public education, policy development, legislative initiatives, effective monitoring and litigation”. Its values remain independence; professionalism; accountability; ethical behaviour; and teamwork.

 

The Commission’s Strategic Framework translates its Constitutional mandate into four strategic objectives, which are:

 

  • Strategic Objective 1: To ensure the creation and implementation of an enabling legislative framework that promotes the attainment of gender equality.
  • Strategic Objective 2: To protect and promote gender equality by engaging with relevant stakeholders to educate and raise awareness on issues of gender equality, challenge patriarchal perceptions and stereotypes and take actions against infringements of gender rights through the implementation of appropriate redress.
  • Strategic Objective 3: To monitor State compliance with regional and international conventions, covenants and charters which have been acceded to or ratified by the Republic, relating to the objects of the Commission.
  • Strategic Objective 4: To build an effective, efficient and sustainable institution that will fulfil its constitutional mandate on gender equality.

 

  1. Purpose of the BRR Report

 

The Money Bills Procedures and Related Matters Amendment Act (No. 9 of 2009) sets out the process that allows Parliament to make recommendations to the Minister of Finance to amend the budget of a national department. Section 5 (1) of the Money Bills Amendment Procedure and Related Matters Act, (No. 9 of 2009) requires that the National Assembly, through its Committee, must annually assess the performance of each national department. Section 5 (2) makes provision for the annual submission of the budgetary review and recommendations report (BRRR) for tabling in the National Assembly for each department. It is expected of the BRRR to report on the following:

 

  • Assessment of the department’s service delivery performance given the available resources;
  • Assessments on the effectiveness and efficiency of the department’s use and forward allocation of available resources; and
  • May include recommendations on the forward use of resources.

 

In order to enable the Committee to take informed decisions on the performance of the Department of Women in the Presidency for the financial year 2014/2015, the Committee consulted the following reports and documents: Section 32‘s reports of National Treasury, the Department of Women Annual report 2014/2015, Reports of the Auditor-General of South Africa (AGSA), MPAT Results of 2014, the 2014 State of the Nation’s Address and oversight reports on the Department and the Commission for Gender Equality (CGE). The Committee also engaged with the Financial Fiscal Commission on the performance of the Department and the Commission for Gender Equality for the year under review. All this information assisted the Committee in providing a holistic assessment of the Department and CGE’s performance for 2014/15.

 

  1. Method

 

In complying with Section 5 (2) of the Money Bills Amendment Procedure and Related Matters Act, Act No 9 of 2009, the Portfolio Committee on Women held a meeting on the 2014/2015 Annual Report of the Department of Women on 14 October 2015. The Office of the Auditor-General was also invited to give input during the budget review and recommendation report process on 14 October 2014. The Committee was also briefed and deliberated on the quarterly reports for 2014/2015 and the first quarter report for 2015/2016. As such, this report therefore includes key issues that were identified by the Committee.

 

  1. Outline of the Contents of the Report

 

This report provides an analysis of the financial and programmatic performance of the Department of Women. The analysis takes cognisance of what Government’s key priorities are and how these affect women in the country in order to determine what progress has been made as well as identify the gaps and challenges that have to be addressed.

 

  1. Overview of the key relevant policy focus areas

 

2.1 Implications of the July 2014 State of the Nation Address

 

President Jacob Zuma in his July 2014 State of the Nation Address (SONA) indicated that the advances that have been made in promoting women’s empowerment and development would be taken forward through the establishment of the new Department: “The Minister in the Presidency responsible for Women’s development, Ms Susan Shabangu, will work with other Government departments, agencies, the private sector and non-governmental organisations, to promote women’s socio-economic empowerment, development and human rights.”

 

In terms of incorporating the above priorities into the work of the Department, it has through its redesign process, developed a programme focused on Social, Political and Economic Participation and Empowerment of Women which is envisaged to promote the accessibility of economic opportunities for women, as well as undertake oversight of the implementation of policies and programmes for women’s empowerment and economic participation. The Department has committed itself to ensure in the next 5 years that women’s socio-economic empowerment and rights are mainstreamed across all sectors of society through its identified strategic objectives

 

2.2 Budget Review, MTBPS

 

The Department of Women came into existence in July 2014. Prior to the establishment an amount of R218.5 million was allocated to the Department for Women, Children and People with Disabilities. Following the establishment of the new Department and the transfer of functions related to children and people with disabilities to the Department of Social Development, the budget decreased to R185.5 million as R33 million was transferred to the Department of Social Development. This left the new Department with an appropriation of R185 million.

 

As such, given the changes in the mandate, structure and resource allocation a year-on-year analysis of funds appropriated is not feasible as the programmes and staff compliment changed. Hence, comparing the budget of the Department of Women to the Department of Women, Children and People with Disabilities would not be entirely relevant given the differing mandates, programmes and resource allocations.

 

Notwithstanding that, it must be noted, however, that R67 million of the R185 million constitutes the transfer payment to the CGE, as such the Department of Women was left with an operating budget of R118.5 million.

 

2.3 Outcome-based approach - Delivery agreement targets for 2014/2015

 

According to the Department of Performance Monitoring and Evaluation, self-assessment score-card per national department and the results of the Management Performance Assessment Tools (MPAT) for the Department of Women revealed the following as of 30 September 2014:

 

  • The Department regressed in its overall performance and was ranked last as compared to all other departments.
  • The Department scored the highest, 4 and 3 respectively, in the following areas: Strategic planning, Annual Performance Plan, Management Structure (decreased from a score of 4 in 2013 to 3 in 2014), Audit Committee, Risk management (improved from a score of 1 in 2013 to 3 in 2014), Organisational Development, Recruitment, Employee Wellness, Demand, Acquisition and Disposal Management, Cash flow and Delegation PFMA.
  • Critical areas of weakness: The Department of Women scored poorly in Monitoring and Evaluation, Service Delivery Improvement, Professional Ethics, Fraud prevention, Internal Audit, PAIA, Human Resource Planning, Human Resource Development Plan, Diversity, Delegation PSA, Performance Management Systems (1-12 Performance management systems, SMS, HOD), Disciplinary cases, Logistics management, Payment of suppliers, Unauthorised expenditure and payroll certification.
  • In addition, over and above the low scores of either 1 or 2, the Department also regressed in the Audit Committee areas from a score of 4 in 2013 to a score of 3 in 2014.

 

The MPAT findings also revealed the following with respect to the performance of the Department of Women:

 

  • No evidence was provided for several areas assessed;
  • Only 35 SMS financial disclosures were submitted by the due date;
  • Only the approved M&E framework was provided;
  • No feedback provided to the Public Service Commission on the 1 case reported to the Department via the hotline,
  • The Human Resource Development Implementation Plan and Monitoring Tool was submitted after the due date to the Department of Public Service and Administration (DPSA). In addition, key evidence was not provided.
  • In terms of disciplinary cases, the DPSA secondary data indicates non-compliance to timeframes.
  • In terms of payment of suppliers, exception reports were submitted after the 15th of each month.
  • The department only provided the approved Organisational Development (OD) structure as evidence.
  • Only the Performance Assessment (PA) for the Director General (DG) was provided.
  • Incorrect evidence provided such as Human Resource (HR) planning implementation report for 2012/13 submitted instead of the report for 2013/14.

 

  1.  Overview of Revised Strategic Plan and Annual Performance Plans

 

Once the Department was promulgated, a revised Strategic Plan and Annual Performance Plan was developed. “The Department undertook its first strategic planning session in August 2014 as the Department of Women to develop the five year strategic plan 2015 – 2020. This entailed the following activities and processes:

 

  • Provide strategic direction on the mandate of the department;
  • Review of the strategic goals and objectives in line with this new mandate;
  • Reconcile the current plans of the department with the new mandate.”

 

As per the Department’s revised plan for the next 5 years, the “priority of the Ministry and the Department will be to ensure that women’s socio-economic empowerment and women’s rights are considered across all sectors of society through:

 

  • Monitoring the extent to which social and economic circumstances of women are significantly improved
  • Promoting, advocating for and monitoring women’s empowerment and gender equality.
  • Promoting the understanding of differential circumstances of women and men in society and the impact of seemingly neutral decisions, plans, laws, policies and practices on either gender through capacity building on gender mainstreaming and responsive gender budgeting.
  • Facilitate and monitoring capacity building and skills development for women to participate meaningfully in all areas of the economy and the workplace.”

 

  1.  Overview of key developments in the organisational and service delivery environments of Department for 2014/15 MTEF cycle

 

In its presentation on the strategic plan, the Department identified the following strategic outcomes for the 2014/15 financial year:

 

2.5.1. Strategic Priorities - Overview 2014/15

 

Following the change in mandate and focus of the Department in May 2014, the Department of Women in the Presidency identified and prioritised the following strategic objectives to achieve its mandate:

 

Programme 1: Administration

  • Strategic Outcome Oriented Goal 1: Good governance and administration
  • This programme aims to provide leadership, management and administrative support to the Department through continuous refinement of the organisational strategy.

 

Programme 2: Social, political and economic participation and empowerment

  • Strategic Outcome Oriented Goal 2: Enabling environment for women’s socio economic transformation and participation
  • This programme aims to enhance sector policy and programmes through identification of policy gaps, development of intervention plans and institutionalisation of implementation protocols/arrangements.

 

Programme 3: Policy Development, Research and Knowledge Management

  • Strategic Outcome Oriented Goal 3: Evidence-based interventions to improve socio-economic status, empowerment and the rights of women.
  • This programme aims to enhance the socio-economic empowerment and rights of women through effective management of research, policy coordination, information and knowledge.

 

Programme 4: Monitoring, Evaluation and Outreach

  • Strategic Outcome Oriented Goal 4: Monitor and Evaluate the improvement in the status of women socio economic transformation and participation and reaching out to role-players
  • This programme aims to monitor the implementation and evaluate the impact of women participation and empowerment programmes and manage outreach initiatives.

 

2.5.2 Medium-Term Strategic Framework (MTSF)

 

The Department notes that its work is directly linked to Outcome 14 of the Medium-Term Strategic Framework, i.e. the attainment of a diverse, socially cohesive society with a common national identify and highlights that its budget allocation will be strategically positioned so as to enable the Department to continue to fight against structural gender imbalances and patriarchy in all its forms and manifestations. However, given its change in mandate, and focus on socio-economic empowerment, it should also consider aligning itself to the strategic priority on radical economic transformation by focusing on expanded opportunities for historically excluded and vulnerable groups, small businesses and cooperatives.

 

 

 

  1. Summary of previous key financial and performance recommendations of Committee

 

  1.  2014 BRRR recommendations

 

Herewith a summary of the key financial and non-financial performance recommendations made by the Committee in the 2014 BRR report progress made in this regard, tabulated below. The Minister of Finance did not respond to any of the recommendations made by the Committee as noted in the 2014 BRRR.

 

Table 1: Reflecting back on BRRR 2014

 

2014 Recommendation

Outcomes, Progress & Challenges

Transitional Matters

  • The Department should provide a progress report on all transitional matters related to Programme 3 and 4 insofar as financial, human resource, operational and programme issues are concerned.
  • The Department should provide a status report on all changes implemented as result of the transfer of functions of Programme 3 and 4 to the Department of Social Development.

 

  • The Committee was briefed on the NMOS process.
  • The Department indicated that the transitional process had a direct impact on its performance and ability to achieve targets or not.

Audit Action Plan

  • The Department should develop action plans that relate the recommendations made by the AGSA. These action plans should address the root cause of the problems. All action plans should be submitted to the Committee with the 2nd Quarterly Report for 2014/2015.
  • The Department should monitor and evaluate the implementation of action plans. As such, progress reports in this regard should be submitted to the Committee on a monthly and quarterly basis.

 

  • Progress reports were not submitted to the Committee but reference was made to implementation in the quarterly report briefings.

Financial performance

  • In-Year Monitoring Reports: The Department is requested to submit quarterly reports to the Committee in line with National Treasury Regulations.
  • Turn-Around Strategy: All outstanding matters related to the Turn-Around Strategy should be reported on to the Committee with the 2nd Quarterly Report for 2014/2015.
  • Daily and Monthly Reporting: The Department should implement and adhere to stringent daily and monthly financial controls and report challenges to the internal audit in this regard all of which must be presented to the Committee in the quarterly reports.
  • Risk Management: The Department should provide the Committee with a detailed report on the implementation of risk management controls which should include the staffing structure, risk management systems, challenges identified and remedial action.
  • Spending Trends: The Department should monitor spending patterns and ensure that this is keeping with what has been outlined in the respective Strategic Plans and Annual Performance Plans. To this end, the Department is requested to provide the Committee with detailed financial reports for activities on a quarterly basis. These financial reports should clearly indicate the purpose of the activity as it relates to the objectives outlined in the APP and the expenditure incurred. In instances, where the Department incurs expenditure for events nationally and internationally, the size of the delegation should be included and details pertaining to Travel and subsistence.

 

  • In-Year Monitoring Reports were submitted for all 4 quarters.
  • Monthly reports were not submitted to the Committee.
  • Risk management was referred to in briefings but a report was not presented. The Department scored 3 in the 2014 MPAT and this was significant improvement from a score of 1 in the previous year, 2013 MPAT results.
  • Spending trends were provided on a quarterly basis but details of the costs incurred for international trips, campaigns, events were not provided.

Human Resource

  • Vacancies: All key funded vacancies should be filled within the specified time allocation, in instances where this is not complied with the Department should clearly identify within the quarterly reports to the Committee reasons for failure to comply and remedial action taken to mitigate.
  • Skills Audit: The Department should provide the outcome of skills audit, an action plan of what is required to address the skills deficit and the impact on the proposed new structure for the Department. This must be submitted as part of the Department’s Annual Performance Plan and revised Strategic Plan to National Treasury for the coming financial year.
  • Organogram/Revised HR structure: In terms of the revised human resource structure that would be submitted to the Minister of Public Service and Administration, the Department must address the inequity between support and core staff ratio.
  • Resignations/Dismissals/Termination of contracts: The Department to provide a written report on the reasons for dismissal of staff, resignations, termination of contracts and its subsequent impact on service delivery.

 

  • A moratorium was placed on the filling of vacancies.
  • The Department informed the Committee that the skills audit of the former Department of Women, Children and People with Disabilities was no longer relevant and that a new audit was underway during the year under review.
  • A revised organogram was submitted to the Committee.
  • The Department made reference to resignations and dismissals during the quarterly briefings but did not provide any specifics in this regard. Information was also provided in the 2014/15 Annual Report.

Governance

  • The Committee reiterated the importance of compliance with the Public Finance Management Act and National Treasury Regulations by the Department and that failure of officials in this regard must be dealt with expeditiously. To this end, the Department to report on how it deals with transgressors and what remedial action is taken. This should be presented in the quarterly reports.

 

  • The Department made reference to issues but did not provide much detail in this regard i.t.o. transgressors.
  • The Department will keep the Committee abreast with regards to the forensic investigation underway and submit a report once the process has been completed.
  • The Department to provide the Committee with more information on the outstanding hot-line complaint levelled against it.

Infrastructure

  • The Department should provide a status report on its infrastructure and progress insofar as addressing previous challenges are concerned as identified by the Committee in the 4th Parliament.

 

  • Improvements were noted on the oversight visit taken by the Committee during February 2015. The following observations were made:
  1. The general conditions of the offices of the Department had improved and were conducive to enable staff to perform their duties.
  2. The Committee was shown an improved record keeping system.

SMART principle

  • The Committee should interrogate the targets/objectives of the Department and CGE to ensure that these targets are SMART and achievable.

 

  • The Committee raised concerns at the APP and Strategic Planning briefings that objectives were not SMART.

Collaboration

  • The Department should ensure improved collaboration between Programme 1 and 2 as well as with the CGE and all other relevant organs of State as well as civil society.

 

 

  • Given the changes in the structure of the new Department, this recommendation i.t.o. collaboration between programmes of the Department was irrelevant given change in mandate of the Department.
  • The Committee continued to raise the importance of strengthening collaboration with all relevant stakeholders and requested for MOUs that were established.
  • Based on the Committee’s engagement with certain Departments, 2 Premiers offices and the CGE there appears to be very little or no collaboration with the Department of Women.
  • The Department did however indicate to the Committee at the time of the 2014/15 Annual Report deliberations that it had developed a specific relationship with the Free State Premier’s Office and the Limpopo Provincial Department of Social Development based on events that were undertaken in partnership with the stakeholder.

Monitoring and evaluation

  • The Department should provide an annual update on progress of gender equality in South Africa in relation to targets identified within the APP and Strategic Plan.

 

  • To date the Committee has not been presented with any framework or indicators used by which to evaluate the performance of other Departments from a gender perspective.
  • The Committee requested more information on the M&E framework.

Events/Campaigns/Conferences

  • The Department should inform the Committee of all initiatives it intends undertaking in order for Portfolio Committee Members to attend where possible.
  • The Department should provide the Committee with reports of all initiatives undertaken by outlining the cost incurred (as per the recommendation on spending trends), the purpose of initiatives and its relation to the APP, the outcomes of the initiative, number of intended beneficiaries and an action plan as to how resolutions/outcomes will be implemented.

 

  • The Committee continued to request information. Invitations were not always sent or either were sent late.
  • The Department does spend on events and as such it would be important to ascertain what the value add is – number of targeted beneficiaries vs number actual attendees, cost incurred, outcomes and impact.
  • The Committee reiterated the importance of sustainability and linking to programmes with impact in the long term.
  • The Committee deemed it necessary that follow-up is done by the Department to assess whether there has been any impact on the women the Department engaged with.

Implementation of policies

  • The Department should brief the Committee on a quarterly basis on the progress of implementation of policies developed.

 

  • Information not provided – only reference made to the Department’s intention to identify gaps in policies.
  • The National Gender Policy Framework (NGPF) is the overarching framework to guide gender mainstreaming in the country. In the former Department, it was indicated that this policy was being reviewed but the outcome of which was never shared with the Committee.
  • It would be important to ascertain from the Department if it had developed any new policies for the year under review. Moreover, what the status of the NGPF is and the extent to which the NDP is being implemented from a gender perspective.

Treaty compliance framework and timeframes

  • The Departments should improve on the compilation and quality of country reports by ensuring that all stakeholders are aware of the information required.
  • The Department should ensure that country reports are submitted within the specified timeframes as required by the relevant reporting bodies.
  • The Department should report back to Parliament on feedback received on country reports and action plans developed in this regard.

 

  • The Department has consistently reported on process matters related to country reports and late submission.
  • This has been an ongoing challenge despite numerous attempts from the Committee to obtain even draft country reports.
  • The Department has submitted country reports on the SADC Protocol on Gender and Development and Beijing+20 to the Committee.

National Council on Gender-Based Violence

  • The Department should provide a status report on the Council location, financial and programme performance at the 2nd Quarter Report briefing.

 

  • Initially the Department indicated that it would assess the relevance of the NCGBV i.r.t. existing structures. Subsequently, the Committee was informed that the structure would no longer be revived and that CEO had resigned in 2014.

 

Legislative and Policy Reform

  • Women and Gender Equality Bill (WEGE): The Department to provide the Committee with plan for dealing with Bill in the current financial year.
  • National Policy on Women Empowerment and Gender Equality: The Department to finalise this draft policy and cost it and brief the Committee accordingly.
  • National Gender Policy Framework: The Department to provide a report on the status of this policy and the intersection with the draft National Policy on Women Empowerment and Gender Equality.

 

  • WEGE bill no longer applicable as the department would focus on identifying gaps in policy and laws.
  • Given the Department’s change in mandate it has resolved to focus on a gap analysis of legislation and policy relating to women’s socio-economic empowerment.

 

 

  1. Overview and assessment of financial performance

 

This section provides an overview and assessment of reported financial performance for 2013/2014 to 2014/2015; overview of finances for 2014/2015 as well as projected financial needs or areas needing improvement in terms of spending for the 2015/16 MTEF.

 

  1.  Overview of Vote allocation and spending

 

Given the NMOS process and the establishment of the new Department of Women in the Presidency, the table below reflects what was initially appropriated to the former Department of Women Children and People with Disabilities in 2013/14. Noting that the Programme: Social, Political Economic Participation & Empowerment was previously known as the Women’s Empowerment and Gender Equality Programme. The 2014/15 final appropriation and expenditure for the Department of Women in the Presidency includes two new programmes namely Research, Policy Coordination & Knowledge Management (RPCKM) and Monitoring, Evaluation & Outreach (MEO). As the Children’s Rights & Responsibilities (CRR) and the Rights of People with Disabilities (RPD) Programmes were transferred to the Department of Social Development, no financials are reflected within the Department of Women for these two programmes.

 

 

Table 2: Financial Performance per Programme (2014/15 and 2013/14)

 

  1.  
  1.  
  •  

Final Budget

Actual Expenditure

  •  

% Spent

Final Budget

Actual Expenditure

(Over)/ Under spent

% Spent

 

(R’000)

(R’000)

(R’000)

%

(R’000)

(R’000)

(R’000)

%

Administration

79 443

77 580

1 863

97.7

89 970

82 599

7 371

91.7

Social, Political Economic Participation & Empowerment (SPEPE)

85 546

85 264

282

99.7

85 285

84472

813

99.0

Research, Policy Coordination & Knowledge Management (RPCKM)

8002

7 686

316

96.1

-

-

-

-

Monitoring, Evaluation & Outreach (MEO)

11 773

11 008

765

93.5

-

-

-

-

Children’s Rights &  Responsibilities (CRR)

-

-

-

-

9 363

9 230

133

98.6

Rights of People with Disabilities (RPD)

-

-

-

-

13 694

11 148

2 546

81.4

Total

184 764

181 538

3 226

98.3

198 312

187 449

10 863

94.5

 

The Department of Women received a final appropriation of R184 764 million for the 2014/15 financial year. This included the transfer amount of R 67 million for the Commission for Gender Equality (CGE), leaving the Department with an operating budget of R118 million. The Department reports under-expenditure to the amount of R3.2 million.

 

  1.  Financial Performance 2014/15

 

  1. Quarterly spending trends, Adjustments for 2014/15, Post adjustment virement, Final total and programme expenditure

 

The table below depicts the spending trends for the Department per programme.

 

 

Table 3: Spending trends per programme

 

Programme

Final Appropriation

Actual Expenditure

Variance

 

R’000

R’000

R’000

1: Admin.

79 443

77 580

1 863

2 SPEPE

85 546

85 264

282

3: RPCKM

8 002

7 686

316

4: MEO

11 773

11 008

765

Total

184 764

181 538

3 226

 

The Department indicates in its 2014/2015 Annual Report, that as at 31 March 2015, it had spent 98.3% of its budget (i.e.R181 538). This percentage includes the budget of the CGE.

 

The Department reports no over-expenditure and indicates a surplus/ saving of R3.2 million for the financial year. Hence none of the programmes had an over-expenditure for the year under review. The Department ascribes the under-expenditure primarily due to vacant posts.The key cost drivers are compensation of employees and goods and services.

 

Virements were made within the Administration programme from savings on compensation of employees to spending on goods and services (R351 000). Funds were also shifted to accommodate amongst others, spending on compensation of employees in Programme 2 (R1.7 million) and Programme 3 (R1.3 million). Within Programme 4 funds amounting to R681 440 were also shifted from the allocation for compensation of employees to offset spending pressures for goods and services (R400 000) and transfers and subsidies (R84 000). A total of R197 440 was used to cover budget shortfalls for compensation of employees in Programme 3.

 

4.2.2 Donor funding

 

In addition to the allocated appropriation, the Department also received aid assistance from both UNICEF and National Treasury to the combined total of just over R7 million. UNICEF provided funds for the establishment and/or administration of the National Council on Gender-based Violence, whilst Treasury allocated funds through the General Budget Support Programme 4 for Projects on the Gender-based Violence Charter. Less than 50% of the aid assistance was utilised – reasons for this are not clearly defined in the Annual Report.

 

  1. Programme 1: Administration

 

The purpose of this programme is to provide effective leadership, management and administrative support services to the department.

 

The Department aims to achieve these objectives through sub-programmes namely;

 

  • Departmental Management
  • Financial Management
  • Corporate Services (consisting of Human Resource Management, Strategic Management, Risk Management, Communication and Legal Services).

 

Administration financial information

 

Table 4: Programme 1 allocation and expenditure

 

Sub-programme name

Final Appropriation

Actual Expenditure

(Over)/ under expenditure

 

R’000

R’000

R’000

Ministry

23 802

23 762 40

40

Departmental

Management

7 827

7 826

1

Corporate Services

24 708

23 024

1 684

Financial

Management

14 031

13 916

115

Office

Accommodation

9 075

9 052

23

Total

79 443

77 580

1 863

 

This programme spent 97% of its budget of R79 million. The main cost drivers for this programme is CoE (R 40 969 million, actual expenditure) and Goods and Services (R 31 700 million). An under-expenditure of R1.863 million was incurred.

 

  1. Programme 2: Social and Economic Participation and Empowerment

 

The purpose of this programme is to provide oversight on the implementation of policies for women empowerment and the elimination of all forms of discrimination of women towards gender equality. The programme aims to support and enhance women participation and empowerment through 5 programmes targeting: Economic Transformation and Participation, Justice and Public Order, Social and related functions, Governance and Administration and Commission for Gender Equality. The Programme will endeavour to create and advocate for opportunities (new and sustaining existing ones) for women within these sectors to advance women’s development and ownership. The functions include facilitating and influencing access by women to:

 

  • Economic opportunities that exist within the national and local economy and its sub-sectors and to as well as promoting and protecting the rights of women in these related areas.
  • Opportunities that exist within the social, justice and governance sub-sectors as well as promoting and protecting the rights of women in these related areas. This will promote the full participation of women in decision-making so that women’s social and basic needs move from the margins to the centre of development planning and resource allocation

 

The Department aims to achieve these objectives through sub-programmes namely;

  • Management: Social, Political and Economic Participation and Empowerment
  • Social and Related Functions
  • Justice and Public Order
  • Governance and Administration
  • Economic Empowerment

 

 

 

Financial information

 

This programme was allocated R83.787 million, however R67.235 million of this amount constitutes the transfer payment to the Commission for Gender Equality, leaving the programme with an operating budget of approximately R16.552 million.

 

Table 5: Programme 2 allocation and expenditure

 

Sub-programme name

Final Appropriation

Actual Expenditure

(Over)/ under expenditure

 

R’000

R’000

R’000

Management:

Social, Political

and Economic

Participation and

Empowerment

10 442

10 227

215

Social and Related

Functions

7 864

7 802

62

Justice and Public

Order

1

-

1

Governance and

Administration

2

-

2

Economic

Empowerment

2

-

2

CGE

67 235

67 235

-

Total

85 546

85 264

282 000

 

This programme spent 99.7% of its budget of R16.552 million. The main cost drivers for this programme is CoE (R 5.870 million, actual expenditure) and Goods and Services (R 12.073 million). An under-expenditure of R282 000 was incurred.

 

4.2.5 Programme 3: Research, Policy Coordination and Knowledge Management

 

The purpose of the programme is to conduct research, policy reviews, and knowledge management on women’s socio-economic empowerment and rights towards gender equality.

 

  • Manage the implementation of research for the review of progress, identification of gaps and to inform decision-making
  • Analyse, coordinate and support policy development
  • Manage knowledge and information in support of learning, planning and decision – making

 

This Programme aimed to generate policy information and manage knowledge required by all sectors and core programmes of the Department of Women. This entailed undertaking research across the different sectors to determine baselines, analyse gaps identify challenges and make recommendations.

 

The Department has identified the sub-programmes, namely;

  • Research, Policy Coordination and Knowledge Management
  • Research and Policy Development

 

 

Financial information 2014/2015

 

The following is a table taken from the Department’s Annual Report in relation to the Programme’s financial situation:

 

Table 6: Programme 3 allocation and expenditure

 

Sub-programme name

Final Appropriation

Actual Expenditure

(Over)/ under expenditure

 

R’000

R’000

R’000

Management:

Research, Policy

Coordination

and Knowledge

Management

1

-

1

Research

Management

3 982

3 943

39

Policy Analysis and

Coordination

4 017

3 743

274

Information

and Knowledge

Management

2

-

2

Total

8 002

7 686

316

 

This programme spent 96.1% of its budget of R8.002 million. The main cost drivers for this programme is Cost of Employment (CoE) (R 6.750 million, actual expenditure) and Goods and Services (R 880 000). An under-expenditure of R 316 000 was incurred.

 

  1. Programme 4: Monitoring, Evaluation and Outreach

 

The purpose of the programme is to monitor and evaluate progress on the implementation of women empowerment policies, programmes and efforts and reach out to stakeholders and communities for women empowerment and rights. The effort of the programme is directed at evaluating the impact of implementing women’s empowerment hence effectively monitoring and evaluating guided by national, regional and international indicators. These functions include:

 

  • Measuring the success and impact of the programmes that seek to implement women’s empowerment and gender equality principles;
  • Measuring the effectiveness and impact of policy and assessing whether, in the long-term, there has been positive impact for women in particular and for the whole society in general.

 

The Department of Women will play an oversight and coordination role through monitoring and evaluation to ensure accountability on part of government and the private sector. The Department will work closely with the Department of Planning, Monitoring and Evaluation to align our monitoring and evaluation mechanisms to ensure harmonisation of our systems.

 

The programme has the following sub-programmes:

 

  • Management: Monitoring, Evaluation and Outreach
  • Monitoring and Evaluation
  • Stakeholder Coordination
  • Communication and Outreach Initiatives

 

Financial information

 

The following is a table taken from the Department’s Annual Report in relation to the Programme’s financial situation:

 

Table 7: Programme 4 allocation and expenditure

 

Sub-programme name

Final Appropriation

Actual Expenditure

(Over)/ under expenditure

 

R’000

R’000

R’000

Management:

Monitoring,

Evaluation and

Outreach

2

-

2

Monitoring and

Evaluation

4 359

3 682

677

Stakeholder

Coordination

2

-

2

Outreach Initiatives

7 410

7 326

84

Total

11 773

11 008

765

 

This programme spent 93.5% of its budget of R11.7 million. The main cost drivers for this programme is CoE (R 7.095 million, actual expenditure) and Goods and Services (R 3.374million). An under-expenditure of R 765 00 was incurred.

 

 

  1. Director General’s report on funding situation and Auditor General of South Africa (AGSA) report

 

The findings of the Auditor General of South Africa (AGSA) for the Department of Women were as follows: The Department received an unqualified audit opinion from the AGSA, with findings on predetermined objectives and compliance. Herewith the key concerns as highlighted by the AGSA.

 

  • Performance information: 33% of the targets for programme 2 were not specific, i.e. they did not clearly identify the nature and required level of performance as required by the Framework for Managing Programme Performance Information. The AGSA in full identifies inadequate review of performance targets by management as the cause of this concern and recommends that management must ensure that planned targets and indicators are SMART.
  • Financial statements: The financial statements prepared for auditing were not prepared in accordance with the prescribed framework as required by the PFMA. However, misstatements identified by the AGSA in the submitted financial statements were subsequently corrected.
  • Annual reporting: Although a transfer of functions and a revision of mandate and strategic objectives occurred during the financial year resulting in the Department having 2 approved APPs, there is no reporting on the performance results of objectives and targets as set out in the first approved APP.
  • Internal audit function: The AGSA highlights that there was non-compliance with Treasury regulations on a number of matters. Performance reports were not submitted to the audit committee on a quarterly basis, there was no assessment of operational procedure over transfers made, there was no evaluation of the effectiveness and efficiency of controls and there was no evaluation of the compliance with laws and regulations. These matters occurred primarily due to an inadequately resourced and functioning internal audit unit.
  • Human resource management: Senior managers did not sign performance contracts for the year under review and a number of employees were appointed without following a proper verification of the claims made in their application. This is in contravention of Public Service Regulation I/VII/D.8.7
  • Leadership and governance: The AGSA highlights that the Accounting Officer and senior management did not exercise adequate oversight responsibility regarding performance reporting. In addition, non-compliance with laws and regulations could have been prevented had compliance been properly monitored by senior management.

 

The AGSA had recommended the following:

 

  • Management should enhance the review process to ensure that planned targets and indicators are SMART.
  • Oversight responsibility over performance reporting should be strengthened.
  • Vacancies in key positions, such as director: internal audit should be filled. In the interim period an employee should act in that position or an alternative arrangement should be made to ensure business continuity.
  • Oversight by the Accounting officer and senior management over compliance with legislation should be enhanced. Actions should be taken against transgressors.
  • Management should ensure that formal Service Level Agreements (SLAs) are entered into with service providers contracted by the department.
  • Tools for the monitoring of the administrators activities should be investigated and the security policy should be amended.
  • Management must ensure that all officials involved in procurement have an understanding of SCM legislation and requirements.
  • Staff should be held accountable for repeat non-compliance.
  • Management should ensure that proper controls and processes are applied to ensure that all rules and regulations are adhered to.
  • Fruitless and wasteful transactions should be investigated by management and if applicable management should recover losses incurred.

 

The Director-General indicates that the reconfiguration process and the resignations of key personnel during the year under review had directly affected the Department’s performance as only 8 of the planned 22 targets were achieved.

 

The AGSA findings for the CGE were as follows:

 

  • The CGE received an unqualified audit opinion with findings on Compliance with laws and regulations.
  • An emphasis of matter was raised hence restatement of corresponding figures. The corresponding figures for 31 March 2014 have been restated as a result of an error discovered during 31 March 2015 for the year ended, 31 March 2014.
  • The CGE was rated good for the following focus areas; quality of submitted financial statements, quality of submitted performance reports and financial health but progress was stagnant or limited.
  • The focus area, compliance with legislation was rated as concerning.
  • The AGSA indicated that the following focus areas namely human resources management and information technology were not only concerning but that the CGE had also regressed.

 

The AGSA had recommended the following:

 

  • Monitoring controls over compliance with laws and regulations and the implementation of an action plan for the CGE should be enhanced.
  • Management should ensure that there are proper controls over the processing of transactions in the Pastel system by ensuring that only finance personnel have access to post manual journals to the financial accounts.
  • The IT Manager should ensure that the backup logs and reports are periodically monitored and follow ups are performed to address root causes where backups were unsuccessful.
  • The Disaster Recovery Plan (DRP) should be reviewed and updated to include the time frames for recovery and backup recovery tests.  Once done, the DRP should be approved and periodically tested.
  • Management must ensure that all officials involved in procurement have an understanding of SCM legislation and requirements.
  • Staff should be held accountable for repeat non-compliance.
  • Management should implement controls to ensure that interest and penalties are avoided.
  • Fruitless and wasteful transactions should be investigated by management and if applicable management should recover losses incurred.

 

  1. Department’s Financial performance for 2015/16

 

4.4.1 Overall Financial Performance

 

  • The Department received an allocation of R187 002 million for financial year 2015/16, however R67.7 million (36.2%) is the transfer payment to the Commission for Gender Equality leaving the Department with approximately R119 million to execute its mandate for 2015/16.
  • For the first quarter of 2015/16, the Department spent R26.2 million of its operational budget of R119.3 million, amounting to 21.9% of its overall operational budget. The Department indicates that it spent R43.1 million of its budget, which amounts to 23% of its overall budget (R187m).
  • National Treasury in its expenditure report for the Department indicates that expenditure is greatest under the Administration programme at R20.1 million, followed by R4.2 million in the Monitoring and Evaluation Programme.

 

In terms of budgetary allocations for the 2015/16 period, the Department’s allocation and programme budgets are as follows:

 

  • CoE 60.9%
  • Goods and services 38.6%
  • Payments to capital expenditure 0.6%

 

Table 8: Overview of budgetary allocations 2015/2016 – 2017/18

 

Programme

2015/16

2016/17

2017/18

Administration

80 451

86 224

91 119

Social, Political and Econ. Participation

87 230

89 735

99175

Research, Policy and Knowledge Man.

6 170

6 408

7 006

Monitoring, Evaluation and Outreach

13 151

13 891

14 604

TOTAL

187 002

196 258

211 904

 

  • Goods and services appears to be the highest cost driver overall.
  • Only programme 1 has managed to achieve most of its targets
  • Most targets were not achieved.

 

 

Table 9: Department’s Financial Performance for 1st Quarter of 2015/16

 

Programme

 Appropriation

Projected Expenditure at 30 June 2015

Actual Expenditure          30 June 2015

Variance                  Actual vs. Projected

% Spent

 

R`000

R`000

R`000

R`000

%

Administration

80 51

19 00

20 066

- 566

24.9

Social, Political & Econ.  Participation & Empowerment

87 30

19 805

18 705

1 100

21.4

Research, Policy Coordination & Knowledge Management

6 170

1 611

37

1 574

0.6

Monitoring, Evaluation & Outreach

13 151

3 421

4 285

-864

32.6

Total

187 002

44 337

43 093

1 244

23.0

 

General Performance Commentary: 2015/2016

 

  • The Department did not achieve 19/30 targets in the 1st Quarter of 2015/16.

 

 

4.4.2 Financial Performance of Programmes

 

Table 10: The financial performance for Programme 1: Administration

Allocation

Cost Drivers

Quarter 1 Targets

R 19.5 million

(actual expenditure: R20 066 million, over expenditure of

R566 000)

Compensation of employees & goods and services

 

7/8 targets met (87.5%)

 

  • This programme almost achieved all of its targets within the 1st quarter of 2015/16.
  • Out of the total planned budget projection of R 19.500 million for the year 2015 /16, the actual expenditure was R 20.066 million, with an over-expenditure of (R 566 thousand). Therefore, Programme 1 has spent 24.9% of its budget as of 30 June 2015.

 

Table 11: The financial performance for Programme 2  

Allocation

Cost Drivers

Quarter 1 Targets

R 19.805 million

(actual expenditure: R18.705 million – under expenditure of R 1.100)

Compensation of employees & goods and services

 

 1/5 targets met (20%)

 

  • Only 1 out of 5 targets were achieved in this programme.
  • Out of the total planned budget projections of R 19.805 million for the year 2015 /16, the actual expenditure was R 18.705 million with an under-expenditure of R 1.100 million. Therefore, Programme 2 has spent 21.4% of its budget as of 30 June 2015.

 

Table 12: The financial performance for Programme 3

Allocation

Cost Drivers

Quarter 1 Targets

R 1.611 million

(actual expenditure of R37 000 & under-expenditure of R1.574 million)

Compensation of employees & goods and services

 

0/7 targets met (0%)

 

  • No targets were achieved in this programme in the 1st quarter of 2015/16.
  • Out of the total planned budget projections of R 1.611 million, the actual expenditure was R 37 thousand, with an under-expenditure of R 1.574 million. Therefore, Programme 3 has spent 0.6. % of its budget as of 30 June 2015.

 

Table 13: The financial performance for Programme 4  

Allocation

Cost Drivers

Quarter 1 Targets

R 3.421 million

(actual expenditure of R4.285 million and over-expenditure of R864 000)

Compensation of employees & goods and services

 

3/9 targets met (33%)

 

  • Out of 9 targets planned for the first quarter of the 2015/16 financial year, Programme 4: ME&O achieved 3 targets (33%), partially achieved 4 targets (45%) and 2 targets (22%) were not achieved.
  • Out of the total planned budget projections of R 3.421 million, the actual expenditure was R 4.285 million, with an over-expenditure (R 864 000). Therefore, Programme 4 has spent 32.6% of its budget as of 30 June 2015.

 

  1. 2015/16 MTEF financial allocations

 

The Department indicated that it requires adequate funding in order to function optimally and that the current resource allocation was insufficient.

 

  1. Concluding comments on financial performance

 

The Committee concurs with the findings of the AGSA and the Financial Fiscal Commission made the relevant recommendations in this regard. Notwithstanding, the under-expenditure incurred by the Department that Committee is aware that in order to address gender equality through gender mainstreaming and gender-responsive budgeting, adequate resources are required. The fact that the Department of Women received the smallest allocation in order to address the gender equality is concerning and requires review in terms of the funding model.

 

 

  1. Overview and assessment of service delivery performance

 

  1.  Service delivery performance for 2014/15

 

Table 14: Overall Performance

 

 

Programmes

Programmes Name

Targets Achieved

Targets Not Achieved

Total targets

% of targets Achieved

% of targets not achieved

Total targets %

Programme 1

Administration

7

4

11

68

32

100%

Programme 2

SPEP

0

3

3

16

84

100%

Programme 3

RPKM

0

1

1

7

93

100%

Programme 4

MEO

1

6

7

9

91

100%

Grand Total

 

8

14

22

36

64

100%

 

  • As per the 2014/15 Revised Annual Performance Plan, the Department achieved 8 (36%) out of 22 planned annual targets and 14 (64%) were not achieved and spent 98.3% of its budget for the year under review.

 

Figure 1 below highlights the performance per programme. From the diagram it is clear that:

 

 

Figure 1: Performance Information

 

 

 

 

 

 

5.1.1. Programme 1

  • “The majority of targets met were in Programme 1: Administration, where 7 from 11 targets were met.”
  • For the year under review the Department produced 19 reports in relation to targets met for this programme which is commendable.
  • Unmet targets: Unmet targets relate to the issuing of internal audit reports, conducting a departmental-wide risk assessment and producing a number of reports on fraud prevention.
  • Human Resources: The Department indicates in its Annual Report as at 31 March 2015 it had a funded establishment of 113 funded posts of which 96 were filled and 17 were vacant. Only 25% (30) of the funded posts are located in the core programmes namely 2, 3 and 4. 8 incidents of misconduct were reported comprising 6 incidents of financial mismanagement, 1 of dereliction of duty and gross misconduct, and 1 case of negligence and dishonesty whilst 3 staff members were suspended. The total CoE amounted to R52.9 million for the year under review. A total of 4 staff members received performance rewards, amounting to R89 000.”
  • Internal audit: The Internal audit committee compiled 3/4 audit reports due to capacity constraints.
  • Risk assessment: The Department notes that 12/16 business units had not updated their risk registers by the end of the 2014/15 financial year as the focus was on the 16 Days of Activism. In addition, the Department indicated that the risk registers would be completed by the 1st quarter of 2015/16.
  • Fraud Prevention: The Department indicates that the fraud prevention report could not be produced and that no fraud mitigation plans were implemented due to capacity constraints but that a consolidated plan would be produced in the 1st quarter of 2015/16.

 

5.1.2 Programme 2

  • The Department indicated that the reports pertaining to Gender Responsive Budgeting consultations, recruitment and placement of young women in STEM and a report on Gender Focal Points were in draft form and not completed by the end of the 2014/15 financial year. In addition, the Department noted that these reports would be finalised in the 1st quarter of 2015/16.

 

5.1.3 Programme 3

  • “Insofar as the non-achievement of targets in Programme 3 (Policy Development, Research and Knowledge Management) is concerned, the Department indicates that a preliminary concept document for the report on the status of women’s socio-economic empowerment was developed but not finalised. In addition, inadequate capacity for research within the Department resulted in external expertise being used.”

 

5.1.4 Programme 4

  • “In Programme 4 the only target achieved relates to 2 outreach campaigns that were conducted.”
  • This programme did not achieve 6/7 targets for 2014/15. The Department stated that all of the outstanding reports would be completed in the 1st quarter of 2015/16. Herewith the outstanding number of reports that reside within this programme:

 

  1. Document – set of norms and standards with indicators and targets developed
  2. 4 country reports
  3. 2 reports on multi-lateral engagements
  4. Stakeholder consultation reports (United Nations Commission on the Status of Women)
  5. Gender-based violence Communication Strategy
  6. 2 Corporate documents

 

  • Hence for this programme, there were 11 reports outstanding which would have been considered in the 1st quarter of 2015/16
  • The Department has subsequently submitted the following reports to the Committee which included the following:

 

  1. Solemn declaration for Gender Equality in Africa
  2. Beijng +20 report
  3. SADC Protocol for Gender Equality in Africa
  4. Report of the Campaigns Conducted to Eliminate Violence Against Women - #365 Days of Activism
  5. Imbizo notes: North West Province: Makau Village
  6. Report of the 2014 Women's Month Celebration: August 2014.
  7. Imbizo report: Mpumalanga Province: Nkangala District, Victor Khanye Municipality
  8. Status of Women in the South African Economy

 

 

  1.  Concluding comments on service delivery performance

 

The Department has a very important role to play in the advancement of women’s socio-economic empowerment in the country. However, the performance of the Department has been affected by the restructuring process and vacancy rate. It is envisaged that these challenges are in the process of being addressed. Notwithstanding this, the outcome of the Department’s programmes must have an impact and bring about a difference to women in South Africa. In order to give effect to the Department’s mandate, it is imperative that the Department collaborates with key stakeholders. As such, greater awareness of the Department’s role, mandate and programmes is required. Effective monitoring and evaluation of laws, policies and government priorities is dependent on disaggregated data. The monitoring and evaluation framework in conjunction with the indicators must be prioritised, finalised and implemented.

 

Of concern is the impact of the unmet targets from 2014/15 which totals 14 and the impact on the financial and programmatic performance of 2015/16. The performance of the Department within the 1st quarter of 2015/16 was not optimal as it was only able to achieve 11/30 targets. Hence there 19 targets which was rolled over to the 2nd quarter. The pressure on the Department to thus deliver in the 3rd and 4th quarter of 2015/16 would be increased given the number of outstanding targets from previous quarters which also have to be met.
 

  1. Finance and Service delivery performance assessment

 

This section provides a synopsis of the service delivery performance against spending patterns for 2014/15 and 2015/16.

 

  •  As noted previously, the Department spent 98% of its budget in 2014/15 and achieved 36% of its targets. In the 1st quarter of 2015/16, the Department spent   21.9% of its operational budget and achieved 37% of its targets.

 

6.1 Department of Women Financial Performance

 

  1. Irregular Expenditure

 

For the year under review, the Department incurred irregular expenditure to the amount of R2.9 million. This was primarily as a result of:

 

  • Non-compliance with Supply Chain Management processes (R1.5 million)
  • Travel Agency Fees (R 873 000)
  • Human Resource Management related (R 502 000)

 

The Auditor-General of South Africa (AGSA) notes that the irregular expenditure was due to inadequate review of compliance with the Preferential Procurement Policy Framework Act and regulations and recommends that management of the Department must ensure that all officials involved in procurement have an understanding of supply chain management legislation and requirements. The Department has also identified measures and proceedings that have been implemented to address the irregular expenditure. This includes an investigation into the non-compliance and a request for condonement6 for the travel agency fees submitted to National Treasury. The irregular expenditure related to human resource management is currently in the process of condonement.

 

 

  1. Fruitless and wasteful expenditure

 

The Department incurred fruitless and wasteful expenditure amounting to R303 000 for the period under review. This was as a result of non-compliance with regulations. The Department attributes this expenditure to sheriff fees on a court order. The Auditor-General further notes that this could have been prevented if there was proper monitoring by senior management.

 

(c) Main cost drivers

 

The main cost drivers for the Department during the year under review and in the 1st quarter of 2015/16 was Compensation of Employees and Goods and Services.

 

 6.2 CGE Financial Performance

 

For the 2014/15 period, the Commission for Gender Equality received a budgetary allocation of R67 235 million. This is a 6.6% increase from the previous financial year. Twenty-nine percent of the budget was allocated to expenditure on goods and services, and the remaining 71% is spent on employee costs (CoE - salaries).

 

The CGE highlights that for the period under review, the initial allocation was supplemented by various sources. The CGE had a reasonable amount of surplus funds from previous financial years and was granted approval by National Treasury to use these funds to defray shortfalls. This amounted to R4.8 million.

 

In addition it also received donor funds to the value of R1.8 million. Donations of R1.2 were received for activities relating to the Gender Summit held in April 2014, whilst R600 000 was received towards activities for the 16 days of activism period.

 

  • Overall revenue therefore amounted to R74.7 million.
  • Overall expenditure amounted to R73.7 million – possible over-expenditure was off-set by the use of surplus funds and donations (this amounted to R968 067 as of 31 March 2015).
  • In terms of irregular expenditure, R1.041 million was incurred for the 2014/15 financial year, however R32.733 million irregular expenditure from previous financial years (2008-2011) has not yet been regularised/condoned by National Treasury, bringing the Commission’s total irregular expenditure to R33.765 million.
  • Fruitless and wasteful expenditure was incurred as a results of interest and penalties paid and amounted to R134 654.

 

 

  1. COMMITTEE’S OBSERVATIONS AND RESPONSE BY DEPARTMENT AND CGE

 

  1.  General

 

  • The Committee noted that the Annual Reports of the Department and the Commission for Gender Equality were submitted on time.
  • The Committee concurred with all of the findings and recommendations of the AGSA and acknowledged those of the DPME and FFC.
  • The Committee observed that only 36% the Department’s targets were met and 64% were not met and raised this as a concern.
  • The Committee noted that the restructuring process had an impact on the Department’s performance outcomes.
  • The Committee observed that the Department was responding to the AGSA findings rather than presenting the annual report for 2014/15 and raised this as a concern.
  • The Committee also noted that the Department has been ranked at the bottom of the MPAT results as compared to other Departments and raised this as a concern.

 

Observations with respect to the Department of Women in the Presidency

The Committee was concerned about the lack of awareness of the Department’s mandate within Government and civil society at large.

 

  1.  Policy imperatives

 

  • The Committee was concerned that the Department’s Annual Report of 2014/15 did not give a clear indication based on the Department’s achievements whether the National Development Plan (NDP) priorities were addressed. Hence, the Committee was unclear as to whether the work undertaken by the Department during 2014/15 enabled progress towards achieving the NDP priorities.
  • The Committee questioned how the Department reconciles the National Gender Policy Framework (NGPF) with the NDP given that the latter was developed more recently. As such, whether there were plans underway to address gaps in the NGPF.
  • The Committee enquired as to whether the Department monitors the progress and implementation of the National Gender Policy Framework by Government Department.
  • The Committee questioned whether the Department was building on policies that was developed by the former Department of Women, Children and People with Disabilities e.g. the Integrated and Monitoring and Evaluation Strategy, Mainstreaming Framework, Advocacy Strategy and Institutional Support and Capacity Development Framework.
  • The Committee questioned how the Department takes into consideration the work done by other Departments e.g. in terms of legislative review from a gender perspective by the Department of Justice and Constitutional Development.
  • The Committee noted that the overall shift in mandate has resulted in functions/targets such as those relating to violence against women (e.g. the coordination of a prevention campaign against gender-based violence and the development of a National Strategic Plan to end Gender-based Violence) not being taken forward. However, during the year under review, the Department received additional funding from National Treasury and a donor (UNICEF) for gender-based violence initiatives.

 

  1.  Governance and operational issues

 

  • AGSA findings: The Committee noted with concern the AGSA emphasis of repeat findings for the Department.
  • DPME findings: The Committee was concerned about the areas in which the Department scored very low within the MPAT for 2014.
  • Compliance: The Committee noted with concern the irregular expenditure incurred by the Department and questioned whether disciplinary measures were taken against the transgressor.
  • Forensic investigation: The Committee noted with concern the investigation referred to by the AGSA and requested more information in this regard.
  • Internal Audit: The Committee observed that 1 member of the Audit Committee attended 4/7 meetings and requested the reasons for such poor attendance.

 

7.4 Human Resources

 

  • Top-heavy structure: The Committee was concerned about the top heavy structure of the Department yet the performance outcomes were not at the desired levels. This brought into question the ability/competency of existing staff to deliver on the objectives
  • Vacancies: The Committee was concerned that the key finance vacancies (e.g. internal audit) were not filled for during the year under review and questioned why these were not prioritised by management.
  • Skills audit: The Committee was concerned that the skills audit report was not finalised during the year under review and that this had had an impact on performance delivery as noted by the Department. The Committee acknowledges that the audit was subsequently finalised in 2015/16 and awaits the outcome and report.
  • Compliance with appointment procedures:  The Committee noted with the concern the AGSA’s finding that performance contracts were not signed by 8 senior officials and that proper vetting procedures were not adhered to for the appointment of staff.
  • Structure of Department: The Committee was still concerned about the top-heavy structure of the Department in the Administration programme with the core programmes functioning on far less staff.
  • Resignations/termination of contracts: The Committee noted with concern the number of resignations and queried whether the Department had a retention strategy in place.
  • Performance Bonus: The Committee was concerned that performance bonuses were issued to 4 officials in light of the overall poor performance of the Department and the fiscal constraints.

 

 

7.5 Service delivery performance

 

  • Unmet Targets: The Committee was concerned about the large number of unmet targets and the impact this would have on the 2015/2016 financial year.
  • Performance outcomes: The Committee was concerned that the Department’s presentation of work undertaken did not fully respond to the socio-economic challenges faced by women in the country. The Committee urged the Department to ensure that there was strategic alignment to the NDP and MTSF outcomes.
  • Impact of events/campaigns: The Committee indicated that the presentation on the Annual Report did not provide sufficient information to assess the effectiveness and efficiency of the two campaigns implemented during 2014/15. The Committee questioned the impact of the campaigns undertaken by the Department and whether any follow up was conducted after every event. The Committee observed supporting evidence about the two campaigns was not provided to the Committee at the time of the presentation on the Annual Report.
  • Outstanding country report: The Committee noted with concern that the Department has not submitted the CEDAW country report on time nor was it presented to the Committee. The Committee acknowledges receipt of the following reports namely; Solemn declaration for Gender Equality in Africa, Beijing +20 report and the SADC Protocol for Gender Equality in Africa and awaits a briefing in this regard.
    1.  Financial performance including donor funding

 

The Committee welcomed the unqualified audit opinion issued by the Auditor General for the Department’s 2014/2015 Annual Report but remained concerned about the emphasis of matter.

 

  • The Committee welcomed the fact that the Department did not overspend in its overall budget. The Committee noted with concern the under-expenditure in light of all targets not being met for the respective programmes.
  • The Committee noted that the Department received funding from National Treasury and a donor for gender-based violence initiatives but was unclear what the money was spent on and what the impact and outcome of the initiatives were as very little detail was provided in this regard. 
  • The Committee noted with concern the irregular expenditure incurred.

 

  1.  CGE Matters

 

Notwithstanding, the fact that the CGE is a Chapter 9 Institution, only accounts to Parliament vis-a-vis the Portfolio Committee on Women in the Presidency) and that the Department merely transfers its funds, the Committee deemed it important to note the following observations:

 

  1. General

 

  • The Committee commended the Commission on the improvements and receiving an unqualified audit opinion however, it still needs to see the CGE obtain a clean audit.
  • The Committee is aware of the processes underway regarding the review of Chapter 9 institutions and the Kader Asmal Report.
  • The Committee concurs with the findings and recommendations of the FFC regarding the funding model of the CGE which needs to be re-examined.

 

  1. Governance

 

  • The Committee was concerned about the repeat findings and recommendations made by the AGSA as per previous financial. This was with specific reference to non-compliance of the PFMA and National Treasury Regulations.
  • The Committee was concerned about the excessive leave which were not in accordance with the CGE policies.

 

  1. Finance

 

  • The Committee observed the increase in the number of performance bonuses paid to employees.
  • The Committee observed that the activity of more than R500 000 did not follow the proper SCM processes and raised this as a concern.
  • The Committee enquired as to how the Commission controlled the use of vehicles within Provinces by provincial staff and whether there were offices in rural areas.

 

  1. Programme

 

  • The Committee observed that 5 legal clinics were conducted in the Western Cape Province and requested the reasons for this. The Committee also enquired whether the legal clinics were evaluated in terms of impact.

 

  1.  Responses
    1. Response by the Department of Women in the Presidency

 

The Annual Report for 2014/15 was based on enormous changes within the Department and challenges. This was attributed to the structural changes due to the new mandate and transfer of functions and resources to the Department of Social Development.

 

In terms of the distribution of personnel and the differences between the Administration (Programme 1) and the core Programmes (2-4), the Department reiterated that it is not an implementing conventional service delivery department. As such, the Department requires highly skilled staff that are properly equipped and have an understanding of gender mainstreaming, gender responsive planning, gender responsive budgeting, indicators and are able to engage with various Departments, entities, other stakeholders on these issues. Hence the Department’s budget is earmarked more towards personnel (Cost of Employment) and less towards goods and services etc.

 

The Department recognises the challenges it faces in terms of human resources and indicated that it went under a rigorous review of its Strategic Plan and Annual Performance Plan by determining what was required to give effects to its mandate and deliver on the targets. To this end, the Department had proposed a structure which was subsequently adjusted given the fiscal constraints within Government. Herewith additional responses provided by the Department:

 

  • Audit findings: The Department indicated that it developed action plans to deal with the AGSA’s findings.
  • 64% targets not achieved but budget spent: The Department indicated that programmes are dependent on human resources to implement and it was not a service delivery department. The vacancies that existed within the Department was attributed to the inability to deliver of targets.
  • Late submission of country reports: The Department concurred with the Committee on the late submissions of reports and indicated it would improve on this target in the future.
  • Internal audit: The Department indicated that it has filled the post of Director: Internal Audit and that post could not be affected by a moratorium that was placed in terms of filling of vacancies. Management has committed to meet with the Internal Audit Committee to interact with their reports.
  • Irregular expenditure: The Department indicated that this is being investigated.
  • Impact assessment of performance and training programme: The Department indicated that this has not been managed well in the Department and it would rectify the matter in future. The Human Resource teams were in the process of developing training based on the skills audit and performance development plans.
  • Top heavy structure: The Department indicated that this will be rectified through the restructuring process.
  • Alignment with NDP: The Department indicated that the strategic plan is aligned to the NDP and that the revised Strategic Plan and the next Annual Performance Plan would be much more detailed and linked to MTSF outcomes.
  • Partnership with other Department on reviewing on legislation: The Department indicated that partnership with the Department of Justice and Constitutional Development is important when reviewing legislation but it was unaware of the two policies and laws that were reviewed during 2014/15.
  • Forensic investigation: The Department committed to send the report to the Committee once the investigation was finalised.
  • Outstanding hotline complaint: The Department committed to establish more information about the complaint and report back to the Committee accordingly.
  • Fruitless expenditure: The Department indicated that this was caused by the reprinting of the 2011/122 APP due to a dispute between the Department and the supplier.
  • Funding by National Treasury (NT) & UNICEF:  NT allocated R6.8 million for 3 years for the programme based on assisting in the reduction of gender-based violence. The Department spent R2.5 million and engage with NT to check if it can utilise the rest of the allocation (R3.8 million) which was not spent. The UNICEF funding was for the establishment of the National Council on Gender Based Violence.
  • Payment of performance award: This as payment for 2013/14 financial year for 3 non-senior management staff members.

 

  1. Response by the Commission for Gender Equality

 

  • R500 000 spent by CGE: This was due to the Gender Summit where some funding came from private funding.
  • Western Cape Province: The Department indicated that the limited number of legal clinics were due to the resignation of a Legal Officer in the Western Cape Province and the position was filled in the current financial year. The CGE has committed to increase the number of legal clinics held in this province.
  • ICT: The unresolved matters will be finalised by the end of November 2015.
  • Control of vehicle: The Commission indicated that these are controlled by the CGE Provincial Coordinators. Provincial Coordinators are expected to allocate vehicle based on work allocation which is dependent on planning.
  • Location of offices: The Commission indicated that the majority of offices are urban based but its reach was rural. In addition, given the Commission’s strong partnerships and collaborations, the strategic partners have complaint forms of the CGE to document cases and then refer these to the CGE. This system of referral has enabled the CGE to extend its reach to areas across provinces despite
  • Impact of events: The Commission is working with DPME on developing a monitoring and evaluation tool to assist in evaluating the impact of legal clinics and initiatives undertaken by the CGE.
  • Outreach programmes: The Commission has relationships with non-governmental organisations, other Chapter 9 institutions, Government Departments, Provincial Department, SALGA and Traditional Leaders which enables it to collaborate and participate in events arranged by their partners. In so doing, the CGE outreach is expanded. Furthermore, the legal clinics, other initiatives undertaken with strategic partners yields significant benefits as these in and by itself generates more partnerships.

 

 

  1. Recommendations

 

The Minister of Women in the Presidency should ensure that the following recommendations are implemented.

 

8.1 Audit Action Plan

 

  • The Department should develop action plans that give effect to the recommendations made by the AGSA. These action plans should address the root cause of the problems, clearly articulate specific actions with key persons responsible at a senior management level and specify time frames. All action plans should be submitted to the Committee with the 2nd Quarterly Report for 2015/2016.
  • The Department should monitor and evaluate the implementation of action plans and progress reports should be submitted to the Committee with every quarterly report.

 

8.2 Financial performance

 

  • In-Year Monitoring Reports: The Department is requested to submit quarterly reports to the Committee in line with National Treasury Regulations.
  • Risk Management: The Department should provide the Committee with a detailed report on the implementation of risk management controls it which should include the staffing structure, risk management systems, challenges identified and remedial action.
  • Spending Trends: The Department should monitor spending patterns and ensure that this is keeping with what has been outlined in the respective Strategic Plans and Annual Performance Plans. To this end, the Department is requested to provide the Committee with detailed financial reports for activities on a quarterly basis. These financial reports should clearly indicate the purpose of the activity as it relates to the objectives outlined in the APP and the expenditure incurred. In instances, where the Department incurs expenditure for events nationally and internationally, the size of the delegation should be included and details pertaining to Travel and subsistence.

 

8.3 Human Resource

 

  • Vacancies: All key funded vacancies should be filled within the specified time allocation, in instances where this is not complied with the Department should clearly identify within the quarterly reports to the Committee reasons for failure to comply and remedial action taken to mitigate.
  • Skills Audit: The Department should provide the outcome of skills audit, an action plan of what is required to address the skills deficit and the impact on the proposed new structure for the Department. This must be submitted as part of the Department’s Annual Performance Plan and revised Strategic Plan to National Treasury for the coming financial year.
  • Resignations/Dismissals/Termination of contracts: The Department should provide a written report on the reasons for dismissal of staff, resignations, termination of contracts and its subsequent impact on service delivery. A contingency plan should also be developed to focus on staff retention.

 

 8.4 Governance

  • The Committee reiterated the importance of compliance with the Public Finance Management Act and National Treasury Regulations by the Department and that failure of officials in this regard must be dealt with expeditiously. To this end, the Department to report on how it deals with transgressors and what remedial action is taken. This should be presented in the quarterly reports.
  • Report on the forensic investigation referred to by the AGSA to be submitted to the Committee on completion.

 

  1.  Performance related recommendations

 

8.5.1 SMART principle

  • The Department should ensure that the targets/objectives are SMART and appropriately costed.

 

8.5.2 Collaboration

  • The Department should ensure improved collaboration with the CGE and all other relevant organs of State as well as civil society.
  • Partnerships should not only be events driven and related but should also focus on monitoring and evaluation of programmes of gender mainstreaming, gender responsive budgeting and the effectiveness of gender focal points.
  • In addition the Department must establish and implement mechanisms to work with relevant organs of State in Provinces.

 

 

 

8.5.3 Monitoring and evaluation

  • The Department should provide an annual update on progress of gender equality in South Africa in relation to targets identified within the APP and Strategic Plan.

 

8.5.4 Events/Campaigns/Conferences

  • The Department should inform the Committee of all initiatives it intends undertaking in order for Portfolio Committee Members to attend where possible.
  • The Department should provide the Committee with reports of all initiatives undertaken by outlining the cost incurred (as per the recommendation on spending trends), the purpose of initiatives and its relation to the APP, the outcomes of the initiative, number of intended beneficiaries and an action plan as to how resolutions/outcomes will be implemented.

8.5.5 Gender-responsive budgeting

  • The Department should brief the Committee on a quarterly basis on the progress of developing and implementing a gender-responsive budgeting framework.
  • The Department should brief the Committee on what progress has been made by municipalities to implement gender-responsive budgeting within the specific pilot sites that were identified. A list of the respective municipalities should be provided along with a progress report.

 

8.5.6 Gender Focal Points

  • The Department should continue to work towards ensuring that gender focal points are appointed at decision-making levels within departments.
  • The Department should brief the Committee on a regular basis on its work and relationship with Gender Focal Points within departments.

 

8.5.7 Treaty compliance framework and timeframes

  • The Department should ensure that country reports are submitted within the specified timeframes as required by the relevant reporting bodies.
  • The Department should table and present all outstanding country reports to the Committee.
  • The Department should report back to Parliament on feedback received on country reports and action plans developed in this regard.

 

8.6 Legislative and Policy Reform

 

  • The Department should brief the Committee on gaps identified within policies and laws on a regular basis.
  • The Department should collaborate and partner with relevant Government Departments and entities reviewing laws and policies from a gendered perspective.

 

  1.  CGE

The CGE should ensure that the following recommendations are implemented.

 

  1. Finance

 

  • Action plans: The CGE should develop action plans that relate to the recommendations made by the AGSA. These action plans should address the root cause of the problems. All action plans must be submitted to the Committee with the 2nd Quarterly Report for 2015/2016.
  • The CGE should ensure that the R33 million is condoned by National Treasury.

 

 

  1. Governance

 

  • The CGE should implement better control measures to mitigate non-compliance with legislation and treasury regulations.
  • The CGE should inform the Committee what actions taken to deal with transgressors of policies and laws and overall poor performance delivery. This should be reported back to the Committee within quarterly reports.

 

  1. Programme and performance

 

  • The CGE should monitor and evaluate the impact and outcome of the initiatives it implements.
  • The CGE should provide the Committee with an account of the performance of Commissioners on a quarterly basis and this should also be reflected in the following annual report.

 

  1.  National Treasury

 

  • The CGE’s current funding model should be reviewed with the intent of ensuring that the Commission is adequately funded in order to deliver on its mandate particularly within the provinces. Specific emphasis should be placed on the funding of legal clinics, public education and information, communication and legal support

 

  1. Summary of reporting requests

 

Table 15: Reporting requests

 

Reporting matter

Action required

Timeframe

Dept.

CGE

Quarterly reports

Written report

Briefing

Briefing at end of every quarter

þ

þ

Audit outcomes -

Details of audit action plan

Written report of audit action plan

Briefing

At briefing of 2nd  quarterly report

þ

þ

Progress report on audit action plan

Briefing

At briefing of 3rd and 4th  quarterly report

þ

þ

Forensic investigation

Written report

Briefing

On completion of the investigation

þ

 

Skills audit

Written report

Briefing

At briefing of 2nd  quarterly report

þ

 

HR: vacancies, dismissals, termination of contracts

Written report

Briefing

At briefing of 2nd quarterly report

þ

 

Gender-responsive budgeting

Written report (progress report)

Briefing

At every quarterly report briefing

þ

 

Written report on pilot sites

Briefing

At briefing of 2nd quarterly report

þ

 

Outstanding country reports

Written report

Briefing

Before the end of the 2015/16 financial year end

þ

 

Impact reports of initiatives (campaigns, events, workshops, conferences etc.)

Written report

 

30 days after an event has taken place

þ

þ

Commissioner’s performance per quarter

Written report

Briefing

At every quarterly report briefing

 

þ

 

 

  1.  Appreciation

 

The Committee having engaged with the Department, the Commission for Gender Equality, the Auditor-General of South Africa, the Department of Planning, Monitoring and Evaluation and the Financial Fiscal Commission on the performance of these organs of State for 2014/2015, the Committee appreciates the inputs received and hereby submits this report.

 

Report to be considered.

                                                                                               

 

                                                                                               

 

 

 

Documents

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