Communications Strategic Review 2005

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The Department of Home Affairs
PRESENTATION TO THE SELECT COMMITTEEON SOCIAL
SERVICES ANNUAL REPORT 2008/0927 OCTOBER 2009
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Structure of the presentation

• Presentation
• Introductory remarks
• Context of the Report 2008/9
• Selected highlights from performance information
• Financial information
• Concluding remarks

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Introductory remarks

• The Department has received a series of
  disclaimers or qualified audits, pointing to
  serious weaknesses in financial management and
  controls. One of the priorities of the turnaround
  programme launched in 2007 has been to address
  these weaknesses.
• The reports of the Audit general and Audit
  Committee acknowledge that progress has been
  made. This is reflected in the audit opinion
  moving from a disclaimer in 2008 to a qualified
  audit in 2009.
• The qualified opinion was based on a number of
  shortcomings that we are taking very seriously.
  We are addressing each of the areas of greatest
  concern departmental revenue, capital assets,
  payables and leases. We are also taking steps to
  improve overall financial management and
  governance.

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The context of the Annual Report 2008/09
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What is the Department reporting against? 1/2

• The Annual Report for April 2008 March 2009
  reports against
• A 3-year Strategic Plan that is organised under
  6 high level integrated strategic objectives in
  support of government priorities
• The annual performance targets (2008-2009) for
  achieving the outcomes specified in the Strategic
  Plan.
• The budget that was allocated and voted for.

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What is the Department reporting against? 2/2

• The Annual Report also reports against the
  audited financial statements of the DHA and GPW,
  including
• The Accounting Officers Report DHA
• The Accounting Officers Report GPW
• The Appropriation Account and related notes

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2008 2009 The Departmental context 1/ 2

• The primary strategic goal of the Department is
  to secure and affirm the identity and status of
  citizens and to manage immigration in the
  interest national security and development
  priorities.
• To achieve this goal we are in the process of
  transforming into a modern, cost-effective and
  efficient organisation. This means having
  officials who are characterised by values of
  public service, honesty and patriotism.
• In June 2007 a programme was launched to
  turnaround the Department. This followed a report
  by the Support Intervention Team that was
  requested by the Minister after an audit
  disclaimer. The report pointed to a wide range of
  deeply rooted problems. These included leadership
  and management, human resources, organisational
  design and information systems.

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2008 2009 The Departmental context 2/2
TRANSFORMATION STRATEGY OUTCOMES AND CHALLENGES
Phase 1 (June December 2007) Define problems, redesign department and service delivery quick wins Baseline studies new service delivery and organisational model quick wins achieved, such as ID process made more efficient skills were transferred by having joint project teams
Phase 2 (Jan 08 March 09) Broad-based implementation of change Implement service delivery and the new organisational model transforming of more processes to improve service delivery address key audit issues Processes and turnaround times were improved Many audit issues and some security risks were addressed. Challenges are slow implementation of the new organizational model ongoing problems of corruption and poor service and outdated systems.
Phase 3 (April 09 March 2010) Extend and sustain change counter corruption strong management values Further process improvements being made service delivery gains are being sustained. Major challenges are to strengthen management, fight corruption, and train staff.
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PROGRAMME PERFORMANCE
Performance per Strategic Objective
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Performance against Strategic Objectives

• Strategic Objective 1 To provide secure,
  efficient and accessible civic and related
  services and products to citizens and legitimate
  residents within specified timeframes
• Improved ID turnaround time from 127 days to an
  average of 40 days through the implementation of
  operations management, process reviews and ID
  Track and Trace (target was 60 days for first
  issues and 56 days for re-issues).
• Improvement in the quality of issuance of
  enabling documents through redesigned processes
  in frontline offices
• Online fingerprint verification was introduced at
  217 offices enabling front office personnel to
  verify the identity of clients on application and
  reduces the need to forward the applications to
  the central ID production facility for manual
  fingerprint verification. This results in the
  on-the- spot issuance of temporary identity
  certificates and emergency and temporary
  passports within a maximum of two working days

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Performance against Strategic Objectives

• Strategic Objective 1 To provide secure,
  efficient and accessible civic and related
  services and products to citizens and legitimate
  residents within specified timeframes
• New late registration of birth process
  implemented that is detached from the ID issuing
  process and requires
• Supporting documents submitted in support of
  applications are thoroughly screened at
  provincial level
• All applicants and informants are interviewed by
  a regional screening committee
• The ten fingerprints of applicants are searched
  against records on AFIS (automated fingerprint
  identification system) to determine if previous
  records exist

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Performance against Strategic Objectives

• Strategic Objective 1 To provide secure,
  efficient and accessible civic and related
  services and products to citizens and legitimate
  residents within specified timeframes
• National Population Register (NPR) clean up
  continued with 12077 cases resolved of multiple
  persons sharing same ID and 5682 of one person
  with multiple IDs
• Implemented SMS functionality for birth, marriage
  and death unabridged certificate system to inform
  applicants of collection information
• Track and trace functionality for Late
  Registration of Births implemented
• Large scale programme of providing IDs to
  16year-olds undertaken in co-operation with the
  Department of Education

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Performance against Strategic Objectives

• Strategic Objective 1 To provide secure,
  efficient and accessible civic and related
  services and products to citizens and legitimate
  residents within specified timeframes
• Support rendered for elections verifying
  identity and issuing documents
• Access improved through opening of 45 additional
  service delivery points and the improvement in
  the functionality of mobile units
• Capacity of Client Service Centre was expanded to
  deal with 1 163 832 contacts made. 96.25 of
  calls are answered within 20 seconds (target was
  80).

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Performance against Strategic Objectives

• Strategic Objective 2 To manage migration
  effectively by enabling the movement of skilled
  workers into the country and efficiently and
  securely facilitating the entry, stay and exit of
  visitors.
• 35 Large Accounts maintained and 17 additional
  accounts serviced (target was 50)
• Sustained adherence to turnaround times for
  temporary (business permits, visas, etc) and
  permanent residence permits
• Travellers cleared within 1.5 to 2 minutes at
  ORTIA, CTIA and Durban International Airport
• 2393 quota permits were issued to foreigners with
  scarce and critical skills (target was 2000)
• Law Enforcement Strategy adopted by ExCo
  provides a foundation for the implementation of a
  uniform and standardised policy to enforce the
  Immigration Act

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Performance against Strategic Objectives

• Strategic Objective 2 To manage migration
  effectively by enabling the Movement of skilled
  workers into the country and efficiently and
  securely facilitating the entry, stay and exit
  of visitors.
• National Immigration Information System (NIIS)
  was put in place to link reception centres and
  to enable the efficient processing of asylum
  seekers
• Roll out of Inspectorate standardised processes
  and training delivered to all Inspectorate staff
• New middle management cadre of 30 deputy
  directors for Inspectorate was appointed in
  February 2009
• Finalised the appointment of a centrally based
  Analysis Unit compromising of eight officials
  and implementation of integrated management
  reporting
• Special projects implemented addressing
  xenophobic incidents and management of displaced
  persons

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Performance against Strategic Objectives

• Strategic Objective 3 To determine the status of
  asylum seekers and manage refugee affairs in
  accordance with international treaties and the
  bill of rights as enshrined in the constitution
• Single day processing capability instituted at
  each of the six national Refugee Reception
  Offices for the issuance of section 22 and
  section 24 permits
• Refugee status determination and granting of
  asylum finalised within 6 months (on average), a
  total of 3,746 Refugee Status were granted within
  the required period
• Refugee Travel documents issued within 10 days
  (on average), a total of 482 Refugee Travel
  Documents issued within the targeted period

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Performance against Strategic Objectives

• Strategic Objective 4 To foster domestic,
  regional and international co-operation towards
  improved economic growth and development,
  including events with strategic importance to the
  country, such as the FIFA world cup.
• Foundation laid for Confederations and FIFA
  Soccer World Cup through sign off of user
  requirements and conceptual design to ensure
  organisational readiness
• Memorandum of Understanding (MoUs) with China
  (visa agreements for diplomatic passport
  holders), Nigeria (visa agreement for diplomatic
  and official passport holders), Lesotho
  (Agreement on cross-border movement) and Zimbabwe
  (co-operation agreement) developed
• MoU with Lesotho was signed but framework for
  implementation to be developed. MoU with Zimbabwe
  was signed on 4 May 2009
• Various awareness campaigns and community
  outreach initiatives successfully conducted, e.g.
  World Cup 2010, South African Passport ushered in
  successfully, Check your status campaign and ID
  collection.

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Performance against Strategic Objectives

• Strategic Objective 5 To deliver the
  departments mandate effectively by implementing
  a new organisational model that is characterised
  by caring officials who serve with
  professionalism and by effective governance and
  operational control
• DHA organisational structure finalised, adopted
  and implementation commenced through
  advertisement of 641 positions of which 528 were
  filled
• 10 574 employees underwent key training
  interventions of which 277 related to
  Immigration Officers undergoing the 2010
  Immigration training in preparation for the
  Confederation Cup, World Cup and beyond
  detailed breakdown in next slide
• SANAI Formative Training Programme was
  successfully completed that will lead to the
  professionalisation of the immigration cadre and
  improved immigration service
• 65 achievement rate for finalised misconduct
  cases (target was 40), 80 success rate in
  disputes in favour of DHA (target was 60),
  54,76 grievances reduction achieved against a
  targeted 40

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PROGRAMME PERFORMANCE FOR 2008/09 (1 Apr 08 to
31 Mar 09)
Name of Training Course Number of employees attended
Civic Services Immigration Services Computer training Batho Pele Revitalization Change Resilience Management of Absenteeism Customer Care Budget training Fleet Management Mentorship 2395 949 557 2 790 2 252 349 262 396 470 154

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Performance against Strategic Objectives

• Strategic Objective 5 To deliver the
  departments mandate effectively by implementing
  a new organisational model that is characterised
  by caring officials who serve with
  professionalism and by effective governance and
  operational control
• Learning Centre Operating Model has been
  redefined, the costing model completed and the
  processes and activities mapped out. The
  establishment of the DHA Learning Centre will
  ensure mainstreaming of training interventions
  and provision of accredited Home Affairs
  qualifications
• Relationships between Organised Labour and the
  Department strengthened. Agreements on Turnaround
  were concluded between Unions and the Department
• Departmental Bargaining Council, 9 Provincial
  Consultative Forums and Turnaround Consultation
  Forum structures established and functional. This
  will lead to improved stakeholder relations
  resulting from functional ER structures which
  enhances labour stability and enable business of
  DHA to continue un-interrupted
• Guidelines on implementation of all priority
  policies have been developed that will ensure
  improved governance and compliance

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Performance against Strategic Objectives

• Strategic Objective 6 To create an enabling
  environment by putting in place support services
  that are effective, efficient, integrated and
  that prevent corruption
• Information Services
• Improved IT security through
• E-directory stabilization that will minimize
  unauthorized access to DHA systems
• Stabilisation of Biometric Access Control
  Management (BACM) system
• Deployment of anti-virus servers for HANIS and
  Waltloo and anti-virus on PC level
• Repair and installation of 33 firewalls across
  the country leading to improved secured and
  protected systems and infrastructure
• National Immigration Information System (NIIS)
  implemented at 6 refugee sites that will result
  in fraud minimisation
• Online Verification System rolled out to 217 DHA
  offices to ensure faster, reliable and more
  effective customer services

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Performance against Strategic Objectives

• Strategic Objective 6 To create an enabling
  environment by putting in place support services
  that are effective, efficient, integrated and
  that prevent corruption
• Information Services
• 11 sites added to Virtual Private Network (VPN)
  resulting in faster, stable, reliable and
  managed network customized to the Departments
  specific requirements
• 45 Regional IT managers and Interns appointed and
  inducted
• Death Status Queries system implemented. Over
  40,000 queries received in 2 months since
  inception for dead/alive status via SMS) leading
  to a reduction in corruption and enhanced
  communication with clients
• Expenditure for Who Am I Online was for the
  planning, procurement of infrastructure and
  implementation of back end systems which were
  used for testing of systems to be implemented in
  the live environment

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Performance against Strategic Objectives

• Strategic Objective 6 To create an enabling
  environment by putting in place support services
  that are effective, efficient, integrated and
  that prevent corruption.
• Finance
• Disposal and Expenditure Review Committees
  established and functional
• 33 Offices refurbished
• Targeted staff (1105) trained at Head Office and
  in Provinces
• Established revenue support team to address
  non-compliance
• 96,90 of allocated budget spent (2008/09)
• Asset Register compiled
• Pilot of integrated receipt engine (IRE) for
  improvement of financial management conducted in
  two offices

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Performance against Strategic Objectives

• Strategic Objective 6 To create an enabling
  environment by putting in place support services
  that are effective, efficient, integrated and
  that prevent corruption
• Internal Audit
• 55 out of planned 60 audits conducted. Reasons
  for non achievement of target are moratorium on
  foreign travelling and audits conducted by
  Auditor-General themselves
• Key issues identified are ineffective controls
  over safeguarding of cash and assets, inadequate
  capacity in offices and training on basic
  internal controls, management oversight and
  inadequate document management (audit trails).
  Concerted efforts are underway to rectify these
  issues
• Annual Internal Audit plan, Audit Committee
  Charter and Internal Audit Charter approved by
  Audit Committee
• Compliance with Treasury Regulations in terms of
  number of Audit Committee meetings for the year
  was achieved

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Performance against Strategic Objectives

• Strategic Objective 6 To create an enabling
  environment by putting in place support services
  that are effective, efficient, integrated and
  that prevent corruption
• Internal Audit
• Internal Audit function strengthened through
• Audit Services structure revised and approved
• Capacity enhanced through appointment of 20
  interns
• Agreed Management Action and Risk Acceptance
  Policies approved by EXCO and Audit Committee
• Branch Risk Representatives were appointed. On
  the job training on risk management was
  provided to risk representatives
• Comprehensive Internal Audit procedure manual
  approved
• Evaluation of performance evidence to strengthen
  internal systems and controls
• Risk Register 2008/2009 was updated

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Performance against Strategic Objectives

• Strategic Objective 6 To create an enabling
  environment by putting in place support services
  that are effective, efficient, integrated and
  that prevent corruption
• Counter Corruption and Security Services
• Capacity enhanced through appointment of key
  staff (e.g. 4 Vetting Officers, 3 Prevention
  Officers, 15 Control Security Officers, 4
  Investigating Officers, 1 Analyst and 3 Senior
  Security Administrative Officers appointed)
• 62 Offices evaluated with regard to corruption
  related risks (target was 60) focus is on
  preventative measures for key business processes
• Pre-employment screenings for all requests
  finalised and 13 targeted service providers
  screened to enhance the integrity of DHA
  employees and service providers
• 80 offices monitored for compliance with Minimum
  Information Security Standards (MISS) to ensure
  that key controls are in place

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FINANCIAL INFORMATION
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TABLE OF CONTENTS

• Expenditure for 2008/09 financial year
• 2. Audit report
• 3. Way forward

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SUMMARY OF EXPENDITURE FOR 2008/09 PER PROGRAMME
PROGRAMMES FINAL APPRO-PRIATION EXPENDI-TURE AS AT 31 MARCH 2009 UNDER/ (OVER-SPENDING) OF BUDGET SPENT
PROGRAMMES R000 R000 R000
Administration 1 365 380 1 365 360 20 99,9
2. Services to Citizen 1 258 111 1 143 893 114 218 90,9
3. Immigration Services 982 780 946 970 35 810 96,4
4. Transfers to Agencies 1 210 337 1 210 337 100,0
TOTAL 4 816 608 4 666 560 150 048 96,9
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SUMMARY OF EXPENDITURE FOR 2008/09 PER ECONOMIC
CLASSIFICATION
SCOA CLASSIFICATION FINAL APPRO-PRIATION EXPENDI-TURE AS AT 31 MARCH 2009 UNDER/ (OVER-SPENDING) OF BUDGET SPENT
SCOA CLASSIFICATION R000 R000 R000
Compensation of employees 1 327 951 1 296 049 31 902 97,6
Goods and services 1 934 772 1 843 226 91 546 95,3
Financial transaction in assets and liabilities 517 (517)
Transfers and subsidies 1 222 026 1 221 808 218 99,9
Payment of capital assets 331 859 304 960 26 899 91,9
TOTAL 4 816 608 4 666 560 150 048 96,9
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Detail of Over/Underspending
SCOA CLASSIFICATION UNDER/ (OVER-SPENDING) R000 REASONS FOR (OVER)/UNDERSPENDING
Compensation of Employees 31 902 The Department was involved in a restructuring process at SMS level, which necessitated the migration of officials to the new organizational structure. Hence a decision was taken to put on hold the filling of SMS positions. The process of migration of SMS members was completed in March 2009.
Goods and Services 91 546 Under-spending is mainly due to the Advance Passenger Processing (APP) on which the custom design study was only signed off in April 2009. The implementation of the project depended on approval of specification by FIFA and Airlines, which caused a delay
Financial transaction in Assets and Liabilities (517) This relates to Debts written off mainly comprising of ex-employees, Dishonoured cheques, and Financial Assistance.
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Detail of Over/Underspending
SCOA CLASSIFICATION UNDER/ (OVER-SPENDING) R000 REASONS FOR (OVER)/UNDERSPENDING
Transfers and subsidies 218 Under-spending is mainly due to the delay in finalisation of payment of employee benefits on retirement.
Payment of Capital Assets 26 899 Under-expenditure can be attributable to the delay in the implementation of the Smart ID Card project. By year-end the SITA was at adjudication stage of the tender process. Furthermore, under-expenditure is due to delay in the pilot project for the Advance Passenger Processing (APP) System which resulted in the conclusion of the contract by 14th February 2009. The Custom Design was completed and sign-off by end of April 2009. In addition the over expenditure on software and other intangible assets is due to the implementation of Who Am I Online Project.
TOTAL 150 048
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Roll Overs
PROJECTS UNDER/ (OVER-SPENDING) R000 NATURE OF THE PROJECT
Advance Passenger Processing Project 39 642 The advanced passenger information and profiling systems allow airlines to send information on passengers to immigration officers. The system will be utilised during the 2010 FIFA World Cup.
Who Am I Online 110 406 This project is an Information Technology driven initiative to address the replacement of most of the existing technology infrastructure currently deployed in DHA. The end result which DHA is striving to achieve an integrated online system to improve turnaround times and thereby improve service delivery.
TOTAL 150 048
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Departmental Revenue
Description Action Plan Time Frame Stakeholders
Inability to substantiate the accuracy of amounts and completeness of transactions recorded for revenue collected from enabling supporting documents processed due to lack of audit trails of application forms processed Implementation of an Integrated Receipting Engine system. The roll out approach targeted the top 100 offices that account for 80 of local revenue. Establish a revenue support system to ensure compliance within the 20 remaining offices on the manual system of collecting revenue. End January 2010 End March 2010 DHA DHA Financial Institutions
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Departmental Revenue
Description Action Plan Time Frame Stakeholders
Lack of integrated accounting system for processing immigration fines and penalties in terms of Section 50 of the Immigration Act, to facilitate the occurrence, completeness and accuracy of income from immigration fines and penalties To clean-up the long outstanding transactions on PCS The integration of Penalty Case System (PCS) with BAS to ensure compliance with revenue management processes and immigration regulations To propose Legislative reforms with regard to penalties in respect of individuals, Transport operators and ships (Immigration regulations) to align with the PFMA and Treasury Regulations End March 2010 End March 2010 End March 2010 DHA DHA DHA and National Treasury
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Capital Assets
Description Action Plan Time Frame Stakeholders
Completeness and accuracy of the fixed asset register that includes assets not included in the asset register, asset included in the asset register but not verifiable and unsubstantiated fair value adjustment Development and implementation of asset management system Verification of assets and updating of the asset register including bar-coding, disposal of assets and reconciliations. Review of the asset management policy. Consult Auditor-General on the fair values of assets. End November 2009 End March 2010 End November 2009 End October 2009 DHA DHA DHA Auditor-General
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Payables
Description Action Plan Time Frame Stakeholders
Clearance of repatriation deposit suspense account and immigration control account due to non availability of supporting documents To approach National -Treasury For the write-off of the repatriation refunds suspense accounts (R11.7million) To transfer the deposit to the Immigration control account (R12.6 million) Conclude memorandum of understanding between the Department of Home Affairs and Department of International Relations and Co-Operation End October 2009 End November 2009 National Treasury DHA
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Leases
Description Action Plan Time Frame Stakeholders
Contravention of Treasury Regulations in terms of entering into a Finance Lease in respect of a Software for Who Am I Online Reclassify the WAIO software lease to a finance lease as condoned by National Treasury. To re-negotiate the contract with the service provider to ensure that assets will be transferred to the Department at the end of the lease period. End October 2009 End March 2010 DHA DHA
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Irregular Expenditure
Description Action Plan Time Frame Stakeholders
Non-compliance with procurement processes with regard to the acquiring of Who Am I Online Participated in the Transversal Contract without prior written approval from National Treasury (Deportation transport contract) To obtain condonation of the procurement process followed by SITA for the Who AM I Online System from Minister of Public Service and Administration. Obtain condonment of irregular expenditure from National Treasury End March 2010 End November 2009 DHA, SITA and Department of Public Service and Administration DHA and National Treasury
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Other Matters
Description Action Plan Time Frame Stakeholders
Non-compliance with PFMA, Treasury Regulations, Public Service Act and Public Service Regulations The Department has established a project to deal with all finance and compliance issues in an attempt to resolve all deficiencies and weaknesses identified by the Auditor-General by strengthening the following governance structures Bid Adjudication Committee Loss Control Committee Expenditure Control Committee Budget Management Committee End November 2009 DHA
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Way Forward

• Design and implement business processes to
  support service delivery.
• To decentralise certain finance and supply chain
  management functions
• To review the structure to support finance and
  supply chain management processes
• To strengthen the governance structures to
  ensure compliance to PFMA, Treasury Regulations
  and Public Service Regulations

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Concluding Remarks
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Conclusion - Progress and Challenges 1 / 3

Assessing Progress
The Annual Report reveals that we have made
significant improvements in the way we deliver
services. Steps have also been taken to improve
quality and security, although these need to be
more comprehensive. A 2009 survey by GCIS
indicates that the poor and marginalised in
particular appreciate advances such as faster
turnaround times, better information via our
Client Service Centre and SMS notification.
These advances are being maintained by a number
of hard working officials, in spite of staffing
gaps, inadequate infrastructure and out of date
systems legacy problems that require time and
substantial resources to address.
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Conclusion - Progress and Challenges 2 / 3

• Defining the challenges that must be addressed
• We need to secure our identity in the interests
  of security, development and democratic nation
  building.
• Urgently address serious gaps in management and
  governance.
• Deal with the minority of officials, working
  with syndicates, continue to undermine
  transformation through corruption.
• Address a poor culture of service delivery and
  weak or wrong values.
• Address the low level of many officials in terms
  of qualifications and skills.
• Replace out of date systems and put in place
  enabling technology.
• Begin to deal with a legacy of poor
  infrastructure and a lack of a proper
  environment for staff and for the citizens they
  interact with.

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Conclusion - Progress and Challenges 3 / 3

• Priorities for the Department going forward
• Put in place management, leadership and
  governance that can drive new values at every
  level, take operational control and sustain the
  turnaround.
• Intensive development of our staff through
  substantial training programmes that enable them
  to deliver on their mandates, guided by correct
  values.
• Continue improving our processes and systems,
  supported by modern technology, with the main
  focus on securing identity while ensuring access
  and efficient service.
• Fight corruption in partnership with the public,
  government and key stakeholders.
• Ensure that every South African has their birth
  registered has received a first issue of an ID
  and values and protects their identity and
  citizenship.
• Build a national consensus around managing
  migration in the interest of national security
  and development priorities and provide policy
  direction and mechanisms for enabling this.

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Questions and Comments
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• Siyabonga
• Dankie
• Thank You
• Realeboga