Independent Communications Authority of South Africa

1 Overview of the Chairperson of ICASA 2

2 ChiefExecutiveOfficer’sReport 6

3 Operational Divisions 10

3.1 Licensing and Compliance Division 11

3.2 Markets and Competition Division 15

3.3 Engineering and Technology Division 23

3.4 Consumer Affairs Division 27

3.5 Legal Division 32

3.6 Support Services 38

4 PerformanceReports 44

5 Annual Financial Statements 108

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It is apleasure to report thatduring the2009/10 financial

year, ICASA was able to substantially fulfil its mandate in

many respects, as is evidenced in the divisional reports, and

was able to overcome the many challenges confronting it as

an organisation.

It is my task as Chairperson to review some of the

highlights.

The digital terrestrial television (DTT) regulations are in place

for the dual illumination and the migration of incumbent

broadcasters to the digital platform. It is hoped that the

analogue to digital converter set-top-boxes (STBs) will be

available to make the analogue switch-off process seamless.

The paid TV licensee named On-digital Media (ODM) and

branded as TopTV has launched their services. Needless to

say the consumer is spoilt for choice.

The licensing of INFRACO, the state-owned enterprise

(SOE), was a timely strategic intervention to lower the cost of

electroniccommunicationservices.INFRACOwillhopefully

provide competitive wholesale network services to other

electronic communication service licensees that will not be

in a position to rollout the costly network infrastructure. The

rolloutoffibreforbackhaulandaccessservicesiswhatthe

New Generation Network is all about and augurs well for

converged multimedia broadband services, the so-called

triple play services.

The Authority is mandated to promote and protect consumer

interests. Detailed reports pertaining to consumer protection

are compiled under the Engineering and Technology,

Licensing and Compliance and Consumer Divisions. These

reports profile various activities such as enforcement,

monitoring, compliance, education and awareness. Matters

that are for adjudication are referred to the Complaints and

Compliance Committee (CCC).

A new radio spectrum fees framework, which takes into

account the economic value of the spectrum framework,

is being developed, and will be published in the new

financial year.The framework ispremisedon theprinciple

that not all spectrum is equally valuable. It is also based on

the recognition that spectrum is a scarce resource that

should be efficiently and effectively managed. Spectrum

pricing should take into account particular usage, such

as exclusivity, shared use, re-use, rural, urban, dense or

national coverage.

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Within this context, regulations were developed for the

licensing of scarce or high frequency bands for example, the

2.6GHzand3.5GHzbands. Inorder toobviate litigation,

ICASA is committed to using objective criteria that would

be applied for the awarding or allocation of the remaining

frequencies in these bands. This will of necessity take into

accounttheneedtoachievethecountry’ssocio-economic

objectives as enunciated in the Objects of the Electronic

Communications Act (ECA). These regulations will be in

placeduringthefirstquarterofthenextfinancialyear.

ItiscommonknowledgethattheRegulatoractsasaproxyfor

competition and this is done via ex-ante regulations. ICASA is

in the process of promulgating regulations on call termination

rates. This will be dealt with through the mandatory process

asrequiredbychapter10oftheECA.Thefinalregulations

willbeinplaceinthenextfinancialyear.

As far as litigation is concerned, we have won some and lost

some; this is the nature of regulation and should not be of

graveconcern.Regulatorsmustremaintruetothedictates

of their mandates.

Seventeen regulatory projects were undertaken and

completed in the period under review. These span the

whole regulatory spectrum, from competition issues to

consumer affairs, interconnection, licensing, universal

service obligations, spectrum management, broadcasting

and postal matters, as well as monitoring, enforcement and

compliance.Inthefinalanalysis,theAuthorityhasdonewhat

itcould,giventhehumanandfinancialresourceconstraints,

and oftentimes a challenging environment within which it

operates. It is our fervent hope that with the progress of

time, our best will be bettered.

Since I have come to the end of my term as Chairperson

of ICASA, I would like to thank all employees, from staff

memberstoCouncillors,fortheirunqualifiedsupportduring

my tenure. I truly appreciate the friendship that we have

built over the years and the faith that you have invested in

me. Sometimes as the family that we were, we naturally

quarrelled, differed, argued and debated on issues for which

allofuscouldnotbeguaranteedcertainty.However,thiswas

all done with respect and camaraderie in the achievement of

this game of robust outcomes. I thank you for the memories

and wish you well.

To all ICASA stakeholders, I would like to acknowledge

your multi-faceted contribution to the sector. The value

that you have added to the sector is priceless in the sense

that youmade a significant contribution to the growth of

thecountry’sGDPandsocio-economicdevelopment.The

overall success of the sector has served as a beacon in the

African ICT landscape.

To the Minister of Communications and the Parliamentary

Portfolio Committee on Communications (PPCC), I express

my greatest appreciation for the support and for urging us

to give always of our best. The constructive criticism was

helped and led to the creation of a strong spirit of vision,

creativity and focus. That you pronounced on the need

for us to act objectively, transparently, non-discriminately

and proportionately was the safest guarantee to our

independence not being challenged.

Inthefinalanalysis,thegoodthatwasachievedduringmy

tenureofofficeat ICASA,wasdone in the interestsofour

country so that we build an information society and remove

the digital divide. We all did it together.

Yours truly,

PARIS MASHILE

FORMER CHAIRPERSON OF ICASA

OVERVIEW OF THE CHAIRPERSON OF THE BOARD OF ICASA

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Section

· Paris Mashile, Chairperson ( 01/07/2005 – 30/06/2010)

· Mthobeli Zokwe (01/07/2005 – 30/06/2009)

· Brenda Ntombela (01/10/2006 – 30/09/2010)

· Robert Nkuna (01/10/2006 – 30/09/2010)

· Professor Jacobus van Rooyen SC (01/10/2006 – 30/09/2010)

· Dr Marcia Socikwa (01/04/2007 – 30/03/2011)

· Thabo Makhakhe (01/07/2008 – 30/06/2012)

· Fungai Sibanda (01/07/2008 – 30/06/2012)

· Nomvuyiso Batyi (01/07/2008 – 30/06/2012)

· Dr Stephen Mncube, Chairperson (01/07/2010 – 30/06/2015)

COUNCIL

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In our Annual Report of the previous year we committed

ourselves to “grapple with the dynamics of introducing a new

working model to the institution” and ensure that “ICASA

works to a single integrated Business Plan that unites and

drivesmanagementandCouncil’sefforts......”

In this regard we have made considerable progress. After

two years of heated debate on the subject, Council and the

Executive Committee (EXCO) eventually agreed to a work

modelthatmapsoutfivekeyprocesses:

• strategicplanning;

• supplychain;

• performancemanagement;

• planningandbudget;and

• projectmanagement.

Parallel to the above, ICASA developed a macro level matrix

that sets out accountability in respect of each of these

ICASA business processes. The establishment of a joint

Council/EXCOProjectManagementOffice (PMO) is being

implemented so that throughout the organisation, work

plans are aligned to calendar activities as well as to individual

outputs.

In undertaking this initiative, the intention was to bring about

integration and correlation between the work calendar of

the institution, its activities as set out in the Business Plan

and the individual commitments of our personnel. It is

also to ensure individual accountability for these activities

in the performance contracts which are mandatory for all

staff at ICASA. It is our intention to re-formulate the existing

performance contract template so that stated accountabilities

are clearly understood and that all activities correlate in a

structured manner to stated Business Plan objectives.

In the interest of bringing about accountability and

transparency both in individual processes and within

divisions, a performance management system has been

implemented to monitor and evaluate performance. In

undertaking all these initiatives it is hoped that the pervading

problem that ICASA has up to now encountered, in

determining the respective accountabilities of both Council

and management, will henceforth be clearly demarcated.

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A major step that has been undertaken during the year

underreview,wastheestablishmentoftheHumanResource

andRemunerationCommittee;thisisaCouncilcommittee

constituted by external experts, whose task has been to

review, provide advice and give guidance on redefining

ICASA workplace practices.

In this regard I would also like to thank the Information and

Technology ReviewCommittee, the Audit Committee and

the Complaints and Compliance Committee for the sterling

work that they have done in assisting ICASA to address the

demands of a new age.

In thepreviousfinancialyear, theorganisation receivedan

unqualified report on the main account, and a qualified

reportonthenationalRevenueFundaccount.TheNRFwas

qualifiedbecausethemanualtransactionthatdidnothave

detailed support were passed in order to reconcile the cash

basis information which was on spectrum system to accrual

basis.TheAuthorityhastransferredthespectrumfinancial

information which was on spectrum system to JD Edwards

financialsystemsothatitcanreportonaccrualbasis.

Through the hard work, dedication and commitment of all

involved, this matter has now been resolved and the integrity

of all ICASAfinancial transactionshasbeenmaintained in

the financial accounting system. I expressmygratitude to

all those who provided assistance in the resolution of this

problem.

During our appearance before the Standing Committee on

Public Accounts on 11 May 2010, the Committee highlighted

the need for ICASA to ensure that applicable processes,

particularly in respect of the use and disbursement of public

funds, were upheld. It is our intention to ensure that this

becomesthebasisuponwhichallICASAfinancialprocesses

are undertaken.

I would like to thank all our stakeholders, in particular the

Department of Communications, National Treasury and the

Auditor-General, for their continued interest and guidance.

An organisation is only as strong and as powerful as its

human resource capital. In this vein, I would like to thank

everyone at ICASA for their loyalty and support to the ideals

of the organisation. It is deeply treasured.

KARABO MOTLANA

CHIEF EXECUTIVE OFFICER

CHIEF EXECUTIVE OFFICER’S REPORT

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Section 2

OPERATIONAL DIVISIONS

The ICASA organisational structure comprises the following divisions whose

reportsarecoveredinthebodyoftheAnnualReport:

RegulatoryActivities

• LicensingandComplianceDivision

• MarketsandCompetitionDivision

• EngineeringandTechnologyDivision

• ConsumerAffairsDivision

• LegalDivision

Support Services

• HumanResourcesDivision

• RegionsDivision

• CommunicationandInternationalRelationsDivision

• AdministrationDivision

• InformationTechnology

LICENSING AND COMPLIANCE DIVISION

The Licensing and Compliance Division (LCD) provides

human resources support to Council and its Committees

in –

• Issuing and/or authorising broadcasting, electronic

communications services, communications network

services and postal services licences, as well as

licence exemptions.

• Monitoringandensuringcompliancebylicenseesand

exempted services according to the relevant terms

and conditions.

LCD is made up of the Licensing and the Compliance

Departments.

3.1.1 LICENSING

The Licensing Department processes new applications,

amendments, transfers and renewal of licences in respect of

broadcasting, electronic communications network services

(ECNS), electronic communication services (ECS) and postal

services. During the period under review, the Licensing

Department was involved in delivering the

followingprojects:

Licensing of Digital Terrestrial Television (DTT)

The introduction of digital technology to replace the

old analogue technology in communications requires a

seamless process that is guided by international convention.

The implementation and coordination of this transition takes

place in individual countries.

The Republic of South Africa is obliged, in the context of

the global transition from analogue television broadcasting

to digital broadcasting, to effect the migration of existing

terrestrial television services from analogue to digital

broadcasting modes. Consistent with the International

Telecommunications Union (ITU) Treaty, the Geneva 2006

Regional Radiocommunication Conference, the Minister

of Communications issued a Digital Migration Policy which

provides for the establishment of two national frequency

networks designated for the provision of the DTT.

In November 2009, the Authority published the Terrestrial

Broadcasting Frequency Plan, followed by the DTT

Regulations inFebruary2010.TheDTTregulationsrequire

that the licences of the current television broadcasters be

amended to reflect theprovisionofmulti-channelservices

in the DTT platform. The Authority is waiting for the SABC,

M-Net, e-TV and Trinity Broadcasting Network to submit

amendment applications as per the DTT regulations. This

projectwillbefinalisedinthenewfinancialyear.

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3.1

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Licensing of Additional Commercial Sound

Broadcasting Services

In terms of the Review of Ownership and Control of

Broadcasting Services and Existing Commercial Sound

Broadcasting Licences Position Paper of January 2004

(“the Position Paper”), the Authority made a commitment

to grant at least three new commercial licences in primary

markets.ThePositionPaperdefinedtheprimarymarketsas

the geographical markets of Gauteng and the metropolitan

areas of and around Cape Town and Durban.

TheAuthorityhasreceived41applicationsinresponsetothe

Invitation to Apply (ITA) for commercial sound broadcasting

service licences. The Authority has granted requests for

confidentiality and condonations to the applicants. The

closing date for submission of applications was later extended

to 30 November 2009. The Authority intends to license new

commercialradiobroadcastsinthenewfinancialyear.

Licensing of Radio Frequency Spectrum for

Provision of Mobile Television

The Digital Migration Policy, as issued by the Minister of

Communications, also provides for the licensing of Radio

Frequency Spectrum for the provision of mobile television.

The Authority has considered submissions from

stakeholders, and approved final regulations on mobile

televisions, reasons document and the Invitation to Apply

(ITA).Theprojectwillbefinalisedinthenewyear.

Licensing of I-ECNS for Self Provision by

Broadcasters

The Ministerial Policy directive requires the Authority to

consider Individual Electronic Communications Network

Service (I-ECN) licence applications for self provision by

broadcasters. The Authority received five applications in

response to the ITA that was published. The Authority has

granted and issued three I-ECNS licences to successful

applicants, namely On-Digital Media, Walking on Water

Television and e-TV.

The Authority has decided not to grant two individual ECNS

licence applications until such applicants have complied

withshareholdingandHDIrequirements.

Licensing of I-ECNS and I-ECS for INFRACO

Broadband

The Ministerial Policy directive requires the Authority to

consider Individual Electronic Communications Service

(I-ECS) and I-ECNS licence applications by INFRACO

Broadband. The Authority received applications from

INFRACO Broadband in response to the ITA. Applications

were published for public comment. The Authority considered

submissions from stakeholders and held public hearings.

The Authority has granted and issued an I-ECNS licence to

INFRACO Broadband, but turned down its application for an

I-ECS licence.

Review of the Standard Terms and Conditions

Regulations; and Process and Procedure

Regulations

The Authority published the draft, revised Standard Terms

and Conditions Regulations and Procedure Regulations

for public comment in July 2009 and has considered

submissions from stakeholders, and decided not to hold

public hearings. The Authority has approved the revised

Regulations.

Registration of Class Licences and Courier Services

During the year under review, the Authority granted and

issuedthefollowingregistrations:

LICENSING AND COMPLIANCE DIVISION

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Section

Class Licence/ Registration

Certificate

Total Issued

ECS 58

ECNS 55

Community Sound Broadcasting 27 (1 refused)

Community Television Broadcasting 2

Low Power Broadcasting 1

Unreserved Postal Services 21164

Amendments and Transfers of Individual

Broadcasting Service, ECNS and ECS Licences

During the year under review, the Authority granted the

followingamendments,transfersandnotifications:

• SevenIndividualECNSandECSweretransferred.

• OneIndividualECNS/ECSwasamended.

• One Individual Broadcasting Service was amended

and eight were refused.

• Twonotificationsof IndividualBroadcastingServices

were received.

• A total of 19 licence amendments, transfers and

notificationsweregranted.

3.1.2 COMPLIANCE DEPARTMENT

The Compliance Department is responsible for monitoring

and ensuring compliance with legislation and regulations

by all licensees. The categories of licences are Class and

Individual ECNS and ECS, Class and Individual Broadcasting

Services, Reserved and Unreserved Postal Services

(including exempt players). Licensees must comply with all

aspects of the Electronic Communications Act and Postal

Services Act, terms and conditions of their licence, as well

as relevant regulations and other legislation.

Broadcasting Licence Compliance

Forthe2009/10financialyear,theAuthoritycompiledseven

reports on broadcasting licensees’ compliance with the

ECA and the licence terms and conditions. In addition the

Departmentconducted86monitoringvisitswiththeaimof

assisting licensees to comply with the terms and conditions

of their licences. Monitoring reports were compiled on the

visits conducted.

Complaints

For the 2009/10 financial year, theAuthority received and

processed46broadcastingrelatedcomplaintsandtheycan

becategorisedasfollows:

Technical 6

Mismanagement 12

Advertising 3

Programming 17

Elections 2

Other 6Total 46

Ofthe46complaints:

• 26wereresolvedbytheDepartment,

• TwowerereferredtotheComplaintsandCompliance

Committtee1, and

• 18werereferredtootherjurisdictions.

Postal Compliance

South African Post Office (SAPO) Compliance

For the 2009/10 financial year, the Authority compiled a

compliancereportontheSouthAfricanPostOffice(SAPO).

TheComplianceunitconducted48monitoringvisitswiththe

aim of assisting the licensees in complying with the terms

3.1

Notes: 1 - CCC is a Standing Committee of the Authority that is mandated by the ICASA Act to adjudicate complaints.

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LICENSING AND COMPLIANCE DIVISION

and conditions of their licence. After each visit, a post visit

report was compiled.

Unreserved Postal Services (Courier Companies)

During the year under review, the Authority registered 65

unreserved postal services to provide courier services.

Acting in accordance with section 22 of the Postal Services

Amendment Act, the Authority conducted a compliance audit

ofallregisteredunreservedpostalservices.Ofthe65letters

sent,onlynineresponseswerereceived,while48didnot

respond, and seven could not be contacted due to changes

of contact details, and one requested an extension.

3.2.3 Electronic Communications Service/Electronic

Communications Network Service Licence

Compliance

Monitoring of ECN and ECNS Licensing

In January 2009, the Authority finalised the licence

conversion process by issuing converted licences to

licensees who complied with the applicable requirements.

Thus, the anniversary date for the new EC Act compliant

licences coinciding with the revised regulatory framework

was16January2010.

The Authority conducted an audit of Individual and Class

ECS/ECNS licences to update its licensee database and

monitor compliance with the requirement for all licensees

to commence providing services within the timeframes

set by the Standard Terms and Conditions Regulations

(12 months for Individual ECNS and six months for both

Class and Individual ECS, as well as Individual ECS from

the date of issue of the licence). The Authority approved the

Compliance report. The audit process will be completed in

thenewfinancialyear.

Compliance Manual

The Authority published the Draft Compliance Procedure

Manual Regulations for comment. The project will be

completedinthenewfinancialyear.

Review of Universal Service and Access Obligations

(USAOs)

In November 2009, the Authority appointed BMI-

TechKnowledge to conduct a review of the existing

Universal Service and Access Obligations (USAO) regulatory

framework. The review included conducting research on

the existing USAO regulatory framework and compliance

with it, as well as a benchmarking exercise to establish

international best practice. A report was submitted for

Council’s consideration in April 2010. The project will

result in the development of a revised Universal Service

and Access Obligations framework with regulations that

prescribe numerous licensees on which the Authority can

impose the obligations. The project continues into the new

financialyear

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SectionMARKETS AND COMPETITION DIVISION

The Markets and Competition Division is responsible

for processing interconnection and facilities leasing

agreements, tariff filings and numbering applications. In

order to assist the Authority to achieve its overall strategic

objectives, the Division provides support to Council

Committees for the purposes of developing regulations and

also conducts policy research as per the Business Plan.

The following key strategic objectives guide the operations

oftheDivision:

• Promotingsustainable,stable,dynamicandinnovative

competition in the electronic communications,

broadcasting and postal sectors to deliver high-quality

services at competitive prices.

• Reducing the cost of doing business in South

Africa by encouraging effective competition through

increased access to infrastructure, diversity of service,

competitive prices and greater choice for consumers.

• Ensuring competitive, fair, open, transparent and

non-discriminatory pricing for broadcasting services

(codes of practice/guidelines on the commissioning of

independently produced South African programming

and sports broadcasting rights).

• Promoting access to basic services at affordable

prices.

• Ensuring fair, transparent and non-discriminatory

allocations of numbers to licensees (competition) and

providesufficientnumberingcapacityforexistingand

future numbering demands.

The Markets and Competition Division compromises four

departments:

• MarketsandCompetitionAnalysis

• Numbering,EconomicandFinancialAnalysis

• PolicyDevelopmentandResearch

• PostalPolicyResearchandDevelopment

3.2.1 MARKETS AND COMPETITION ANALYSIS

DEPARTMENT

The Markets and Competition Analysis Department reviewed

the need for regulatory action to promote competition in the

ICTsectorinSouthAfricaduringthe2009/10fiscalyear.As

aresult,itachievedthefollowing:

• Guidelinessettingouttheprocessesandprocedures

that the Authority would adopt for conducting market

reviews under Chapter 10 of the ECA.

• Adiscussiondocumentonidentifiedrelevantmarkets

(the call termination market).

• Preparatory work into competition matters in the

broadcasting segment of electronic communications.

Guidelines, Processes and Procedures for Chapter 10

of the ECA:

Chapter 10 of the ECA gives the Authority powers to

introduce a range of pro-competitive measures, including

price controls where this is deemed to be necessary. To

introduce such measures, the Authority is required to follow

anevidence-basedapproachofdefiningamarket,evaluating

the effectiveness of competition and designing appropriate

pro-competitive remedies.

The Authority initiated the process of developing these

guidelines in 2008 with the release of draft regulations

for public comment. In taking the views expressed by

stakeholders into consideration, the Authority chose to

develop a guideline which would outline the process to be

followed per market review. The following are the processes

outlined:

• Publicconsultationprocesspermarketreview.

• The factors to be considered when defining and

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MARKETS AND COMPETITION DIVISION

evaluating the effectiveness of competition in a

particular market.

• Thepossiblepro-competitive remedies theAuthority

may impose.

The guideline was released on 8 March 2010. The guideline

provides clarity to all stakeholders on the approach the

Authority will follow when evaluating the effectiveness of

competition in the ICT sector.

Framework for competition in the broadcasting

sector

The objective of this project was to identify conceptual areas

where there may be a lack of effective competition in the

value chain of providing broadcasting services.

The Authority completed this project and intends to use

the outcomes to support a public engagement process on

competition matters in the provision of broadcasting services

inthe2010/11fiscalyear.

Coherent and Modular Framework for Wholesale

Regulation Applicable to I-ECNS and ECS Licensees

The ECA requires the Authority to develop a number of

regulations governing the wholesale segment of the electronic

communications sector. This includes the interconnection

and facilities leasing regulations required under chapter

7 and 8 respectively, as well as matters relating to carrier

selection and numbering.

The Authority developed a report that drew the linkages

between these various sets of regulations to ensure a

coherent approach to regulation of the wholesale segment of

theICTsector.ThisreportsupportstheAuthority’songoing

planningintothenewfinancialyear.

Facilitating Interconnection and the Leasing of

Electronic Facilities

The ECA mandates all licensees to offer interconnection

services and all individual electronic communications

network service licensees are required to lease electronic

communications facilities on request as per chapter 7 and

8 respectively. In addition, all interconnection and facilities

leasing agreements are to be submitted to the Authority for

review.

ThisprojectrequirestheAuthoritytoimplementthefollowing:

• Framework Interconnection and Facilities Leasing

Regulations

• Databasemanagementsystemforallagreements

• Effectiveassessmentof interconnectionand facilities

leasing agreements.

Framework for Interconnection and Facilities Leasing

Regulations

The Framework Interconnection and Facilities Leasing

Regulations are a requirement under Chapter 7 and 8 of

the ECA respectively, with the objective of upholding the

obligation to offer interconnection and lease electronic

communications facilities. These regulations govern the

maximum time itmay take for agreements to be finalised

between parties, the minimum terms and conditions, allow

for effective dispute resolution and, importantly, ensure

transparency and non-discrimination between parties.

The Authority released draft interconnection and facilities

leasing regulations for public comment in July 2009 and later

December 2009 respectively.

Final Interconnection Regulations were released at the

beginning of the new financial year togetherwith the final

FacilitiesLeasingRegulations.

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Section 3.2

Database Management System for All Agreements

All interconnection and facilities leasing agreements are

filedwith theAuthority andare tobemadeavailable. The

implementation of the database management system

is dependent on the finalisation of the Facilities Leasing

Regulationsandwillbecompletedinthenewfinancialyear.

Effective Assessment of Interconnection and

Facilities Leasing Agreements

The Authority is required to review all interconnection and

facilities leasing agreements to ensure that these are fair and

non-discriminatory. During the2009/10 financial year, the

Authority received 41 interconnection agreements and 66

facilities leasing agreements.

Essential Facilities Framework

The Authority reviewed the legislative mandate around

essential facilities and determined that all licensees have

the right to request access to electronic communications

facilities under chapter 8 of the ECA. Access to such facilities

is therefore catered for in the electronic communications

FacilitiesLeasingRegulations.

In terms of the legislative mandate, “favourable terms”

means that access to any electronic communications facility

must be non-discriminatory as among comparable types of

facilities by a licensee providing facilities to itself and to other

licensees seeking access. Any further regulatory action may

only take place through conducting a market review under

chapter 10 of the ECA

Regulations to Support Local Loop Unbundling

Local loop unbundling is a specialised form of leasing of

electronic communications facilities and therefore requires the

completionoftheFacilitiesLeasingFrameworkRegulations.

Thisprojecthasbeenpostponedtothe2010/11fiscalyear.

3.2.2 NUMBERING, ECONOMIC AND FINANCIAL

ANALYSIS DEPARTMENT

InlinewiththeMarketsandCompetitionDivision’sstrategic

objectives, the Numbering, Economic and Financial Analysis

Department processed various tariff applications and

conductedseveralreviews:

The following categories of tariff applications were

processedduringtheyearunderreview:

Telkom’s 2009/10 Tariff Regime

Telkom filed for an average tariff increase of 1.7% in the

regulated basket of services for the price control year

1 August 2010 to 31 July 2011 in terms of Price Cap

Regulations, Government Gazette Number 27772 Notice

R.675of2005(“theRegulations”).

The aforementioned average tariff increase of 1.7% in the

regulated basket of services was approved by the Authority

intermsofSection6(5)oftheRegulations,whichstate:

“The Authority may disapprove the proposed rates only if-

a) the calculations contain mathematical errors; or

b) the terms and conditions contained therein are in

conflictwithapplicablelaws,policydirections,andthe

RateRegime,inamaterialrespect”.

SAPO’s 2010/11 Tariff Regime

TheSouthAfricanPostOffice(SAPO)isrequiredtofileannual

tariff adjustments with the Authority in accordance with its

licence terms and conditions, giving it exclusive rights over

the provision of the reserved postal services.

SAPO filed for a general increase of 6.7% in reserved

postal services tariffs for the financial year from 1 April

2010 to 31 March 2011. The Authority approved the

proposed increase as it was in line with the Consumer

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MARKETS AND COMPETITION DIVISION

Price Index for the fiscal year. The approved tariffs were

gazettedbytheAuthorityon31January2010.

General Tariff Notifications for Electronic

Communications Services

All licensees are required to notify the Authority of

adjustments in tariffs for retail services or for the introduction

of new services or amendments in business rules for existing

services. This requirement is in terms of the Standard Terms

and Conditions Regulations (Government Gazette no.

30530NoticeR.1138of2007).TheRegulationsstatethat“a

licencee may not provide any services for a charge, fees or

other compensation, unless the price(s) for the services and

other terms and conditions of the provision for such services

have been filed with the Authority at least seven days prior

to the provision of the said services; in making such filing, a

licencee must utilize a format approved by the Authority”.

TheAuthorityreceived72tariffnotificationsduringtheperiod

under review.

Economic Regulatory Framework Review

Duringthe2009/10financialyear,theDepartmentundertook

thefollowingprojects:

Fixed Line And Mobile Operators Regulatory Financial

Reporting Requirements

Acomprehensiveanalysisofeconomicregulatoryfinancial

reportsfiledbyMTN,TelkomandVodacomfor2005to2008

was completed in the year under review. The purpose of the

reviewwastoensurecompliancewiththeregulatoryfinancial

reporting framework as set out in the Chart of Accounts and

Cost Allocation Manual (COA/CAM) regulations. The results

of theAnalysisofRegulatoryFinancialReportswereused

as input into the Mobile and Fixed Call Termination Market

Review.

Accounting Separation for the Reserved Postal

Services

SAPO has exclusive rights over the provision of reserved

postal services in terms of the licence issued under the

Postal Services Act of 1998. The Act requires SAPO to

keep separate accounts for reserved and unreserved postal

operations in line with its licence terms and conditions. The

objective is to ensure that there is no cross-subsidisation

from a reserved postal area to an unreserved postal area

and any other unregulated services.

During the period under review, the Authority developed

draft accounting separation regulations pertaining to the

reservedpostalservices.TheAuthorityenvisagesfinalising

theseregulationsinthenextfinancialyear.

Price Control Framework for Reserved Postal

Services

The Postal Services Act as amended requires the Authority

to prescribe the manner for determining the reserved postal

fees and charges. The Authority has reviewed the framework

for pricing and tariffs setting during the 2009/10 financial

year. As a result the Authority has developed draft price

cap regulations for reserved postal services and envisages

finalisingtheseregulationsinthenextfinancialyear.

Telkom Price Control Regulations and COA/CAM

Regulations

TheDepartmentconductedapreliminaryreviewofTelkom’s

Price Control Regulations and COA/CAM Regulations

owing to change in the legislative framework. The Authority

envisagesfinalisingthisreviewandpublishingtheoutcome

in the next financial year (2010/11), after submitting is

recommendations report to Council.

19

Section 3.2

Numbering Administration

The ECA requires the Authority to provide a framework to

ensure effective management of numbering resources. The

following numbering projects and activities were undertaken

duringtheyearunderreview:

Numbering Allocations

The Numbering Plan regulations provide a framework for

numbering allocations, as well as the use and management

of the assignment of numbers. The Authority utilises this

framework when processing, numbering applications

received from licensed operators. In the period under review

335 numbering applications were processed. The number

allocationsmadewereinrespectof:

• Geographicnumbers,e.g.011,012,015,021;

• Non-geographicnumbers,e.g.087,086,080,085,

088;

• Mobilenetworkcodes;

• Numberportabilityroutingcodes;and

• Nationalandinternationalsignallingpoints.

Review of Regulations and Implementation

Numbering Plan Regulations

Draft regulations have been developed with the objective

of reviewing and aligning the existing numbering plan

with the ECA requirements, and ensuring effective

allocation and usage of numbers. These regulations are

expectedtobefinalisedinthenextfinancialyear.

Carrier Pre-Selection Regulations

The Authority is required to develop a carrier pre-selection

framework in terms of which eligible subscribers to an

electronic communications service licencee can access the

electronic communications services of another licencee.

The objective is to increase customer choice in terms

of taking advantage of lower prices and better quality of

service offered. The Authority consulted with the industry

on the final draft regulations for carrier pre-selection. The

nextstep is tocomeupwith theAuthority’s legalposition

onthefinaldraftregulationsbeforetheAuthoritycanmake

a determination on the publication of the regulations. This

processisexpectedtobefinalisedinthenextfinancialyear.

Number Audit

TheNumberAuditrequirementandAuditTermsaredefined

inlinewiththeNumberingPlanRegulations.Theaimofthe

Audit process is to audit the existing usage of the numbering

spectrum allocated under these regulations and the ECA,

andtoensureefficientutilisationofnumbers.Apreliminary

audit was conducted in the 2009/10 financial year as a

baseline for the comprehensive audit that is envisaged to be

undertakeninthenextfinancialyear.

Implementation of Geographic Number Portability

The objective of number portability is to promote consumer

choice, giving subscribers the freedom to choose a network

operator whilst retaining their telephone number. During the

reporting period, the Authority facilitated the implementation

of geographic number portability. It was done in two phases

inlinewiththeexistingNumberPortabilityRegulations.

Inthefirstphase,whichwasmainlyintendedforcorporate

users, the portability of blocks of numbers (blocks of 1000

and 10 000) was implemented. The implementation of the

second phase which involves the portability of individual

geographic numbers, will be effected in the new financial

year.

20

MARKETS AND COMPETITION DIVISION

3.2.3 POSTAL POLICY AND RESEARCH

DEPARTMENT

The following projects were undertaken by the Postal Policy

ResearchandDevelopmentDepartmentduringthe2009/10

financialyear:

Unreserved Postal Services Regulations

As part of the strategic goal of promoting competition in

the ICT sector, the Authority reviewed the regulations for

unreserved postal services. The initial regulations were

promulgated in 2005. In 2009/10, the Authority reviewed

the regulations to align them with the latest developments in

the sector. The new regulations will come into effect in July

2011.

Regulatory Framework for Extra-Territorial Offices of

Exchange (ETOES)

TheAuthorityconductedinternalresearchontheRegulatory

Framework for ETOES and Infrastructure sharing. The

purpose of the research was to conduct a benchmark study

on how ETOES and Infrastructure sharing are dealt with in

other countries. These reports were completed and will be

used to make recommendations for consideration by the

Authority. ETOES are offices of exchange established by

postal administrators in other countries. They are involved

with handling of outbound international mail and their activities

include receiving, sorting and dispatching of international

mail. Currently, the legislative framework is silent on how

South Africa should deal with ETOES.

The purpose of infrastructure sharing is to ensure universal

service and access by meeting quality of service requirements

and also serves as a means of revenue sustainability for

postal operators, whereby the operator can lease some

of their infrastructure to other operators. Furthermore,

infrastructure sharing encourages innovation in the sector.

According to the SADC Protocol on Transport,

Communications and Meteorology, SADC Ministers have

resolved that member countries should investigate the

possibility of sharing their infrastructure in order to achieve

universal access.

3.2.4 BROADCASTING POLICY DEVELOPMENT AND

RESEARCH DEPARTMENT

InlinewiththeAuthority’sstrategicobjectives,thefollowing

projectswereundertakeninthe2009/10financialyear:

Regulatory Approach to the Digital Dividend

The Digital Dividend is the spectrum that will be vacated by

the migration of incumbent analogue broadcasting services

to digital technology. This is consistent with the decisions of

theITU’sRegionalRadioConference2006,whichrequires

all countries in its Region 1 to conclude the migration

process by mid-June 2015. The objective of the project is to

set out a comprehensive methodology which will ensure that

the dividend is allocated in a manner that meets the national

social and economic goals of the country. The framework

will inform the current approaches to frequency planning

and other regulatory interventions. To date a discussion

document has been approved by Council and will be

presented to the Department of Communications before

publication for comment. The project will be completed in

thenextfinancialyear.

Regulation of Internet Protocol Television and Video-

on-Demand (IPTV/VOD)

IPTV has elements of both broadcasting and

telecommunications, and these two sectors are regulated

differently. In an effort to address the regulatory challenges

posed by these new services, the Authority has conducted

an Inquiry into the regulation of IPTV, with particular

emphasis on non-linear services or Video-on-Demand. To

date, a discussion document has been published where

21

Section 3.2

various stakeholders made written submissions. The project

willcontinueintothenextfinancialyear.

Ownership and Control Project

Policy and regulation on ownership and control of

communications services and networks is necessary to curb

the threat of monopoly and concentration. It is in this light that

the Authority is reviewing ownership and control regulations.

In accordance with the ECA, a discussion document

was published for public comment where a number of

submissions were received from various stakeholders. This

projectwillbecompletedinthenewfinancialyear.

Regulatory Impact Assessment

To ensure an improved and more consistent regulatory

environment in the electronic communications sector,

ICASA has embarked on a process of developing a

RegulatoryImpactAssessment(RIA)framework.Aconcept

document was developed and workshops were convened

in order to outline the approach to be undertaken by ICASA

in implementingRIA in its regulation-makingprocess.This

approach will ensure that the organisation minimises risk and

uses resources efficiently and effectively. The project has

been completed. RIAwill create regulatory certainty once

implemented as it will assist ICASA in preparing high-quality

regulationsandinformthepublicofICASA’sintentions.RIA

will make it easier to assess the impact of the regulations

in the sector and to ensure responsible and accountable

regulation.

Review of Regulations on Advertising, Infomercials

and Programme Sponsorship

The objective of this project was to review the 1999

Regulations on Advertising, Infomercials and Programme

Sponsorship in line with Section 4 readwith Section 95

of the ECA. Subsequent to consultation with stakeholders

the Authority decided not to amend/repeal the current

regulations until the ECA has been amended to achieve clarity

andcertaintyonlegislation.TheAuthority’sfinaldocument

on the hearings, Position on Advertising, Infomercials and

Sponsorship and Findings, was published in December

2009. The regulations are used to give meaning to the

licence conditions of Broadcasting Service Licensees and

focus on the duration of advertising, thereby distinguishing

advertisements from other broadcasting material such as

infomercials and sponsorship messages.

Codes of Practice/Guidelines on Commissioning of

Independently Produced South African Programming

The Codes of Practice seek to regulate the commissioning

of independently produced South African programming as

requiredbySection61(1)of theECA. Thepurposeof this

project was to ensure that the Authority develops guidelines

or a Code of Practice for dealings between broadcasters

and independent producers in accordance with the ECA.

The Authority published the final regulations and findings

document on the Commissioning of Independently

Produced South African Programming in December 2009.

Subsequently, workshops were convened in Gauteng and

Cape Town on the published regulations. The project was

handed over to the Authority’s Licensing Department to

monitor compliance by the Broadcasting Service Licensees

withtheRegulations.

Review of Sports Broadcasting Rights Regulations

The objective of this project was to review the Sports

BroadcastingRightsRegulationsof2003inordertoalignthem

to the ECA and to develop a dispute resolution mechanism.

InMarch2010,thefinalsportbroadcastingrightsregulations

and reasons document were published. The project has been

completedandtheAuthority’sMonitoringandCompliance

Departmentwillmonitorbroadcasters’compliancewiththe

regulations.

22

MARKETS AND COMPETITION DIVISION

Digital Terrestrial Television Broadcasting

Regulations

The purpose of this project is to develop a regulatory

framework for the migration of terrestrial broadcasting

television from analogue transmission to digital transmission.

ThefinalDigitalMigrationRegulationsandreasonsdocument

was published in February 2010. The project has been

completed and the Authority’s Licensing Department will

implement the regulations and start licensing broadcasters

in line with them.

23

SectionENGINEERING AND TECHNOLOGY

DIVISION

The Engineering and Technology Division (ETD) comprises

the Frequency Spectrum and Spectrum Monitoring and

Control departments. The responsibilities of the Division

include:

- Support in the granting of frequency and station

licences,certificatesandauthorisations;

- Management and planning of access to the radio

frequency spectrum;

- Preparation of the national radio frequency plan;

- Investigation of radio communications interference;

- Assessment, adoption and management of technical

standards relating to customer equipment and other

devices, and

- Providing relevant technical support to stakeholders.

The main highlight for the Division in the year under

review was preparations for the 2010 FIFA World Cup in

South Africa. The Division was the main champion for the

preparations, ranging from providing timely information for

international broadcasters and other potential spectrum

users, building capacity for authorisation and monitoring

during the tournament, to assisting with the national disaster

recovery plan.

In the year under review the Division initiated a research

collaboration programme with two institutes of higher

learning. The long-term vision is to work with both industry

and academia. The current focus of research would be

around sharing studies for broadcasting, International

Mobile Telecommunications (IMT)-2000 systems and IMT-

Advanced. There is also a focus on radio frequency spectrum

measurements to characterise the environment for possible

utilisation of opportunistic spectrum-sharing techniques

such as cognitive radio.

TheDivisionparticipatedinseveralITU-Rstudygroups.The

research collaboration programme will be a major driver of

participation in the future.

3.3.1 FREqUENCY SPECTRUM DEPARTMENT

The Frequency Spectrum Department consists of the

followingunits:

• SpectrumManagement,

• RadiocommunicationsFrequencyLicences,

• EquipmentTypeApprovaland

• BroadcastingSpectrum

Spectrum Management

Enabling legislation mandates the ICASA to allocate and

manage the frequency spectrum efficiently in accordance

with the ITU’s allocations. The Spectrum Management

unit is responsible for conducting technical analysis and

assigningspectrumefficiently.Toensureefficientutilisation,

a number of interventions have been required in the form

of regulations. The unit has championed several projects

aimed at achieving this.

Radio spectrum licence fees

The ECA mandates ICASA to make regulations with respect

to spectrum licence fees. The spectrum fees charged for

various radio services are a crucial part of the spectrum

management process. All fees collected by the Authority are

passed over to the National Treasury.

The current fee charges have been in place for the past

10 years, and are being reviewed. The current spectrum

charging policies and licensing mechanisms do not promote

the efficient use of the spectrum, but rather encourage

stockpiling of spectrum and are based on outdated price

setting mechanisms.

ICASA commissioned a scientific study to determine the

new radio spectrum fees framework, which takes into

consideration the economic value of the spectrum. The

Authority undertook a public consultation process wherein

draft regulations (Government gazette No 32029 of 16

3.3

24

ENGINEERING AND TECHNOLOGY DIVISION

March 2009) were published and public hearings held in

September2009.Thefinalregulationswillbepublishedby

theendofthefirstquarterofthe2010/11financialyear.

The new fees framework takes into account factors such as

geographic location, congestion, frequency location in the

spectrumandsharingtoincentiviseefficientuseofspectrum

and to penalise wastage.

Review of national radio frequency plan

Enabling legislation and international convention require the

Authority to review the national radio frequency plan from

time to time. The plan under review will take into account

regional harmonisation in line with SADC guidelines and the

resultsofthe2007WorldRadiocommunicationsConference

(WRC–07).

The national radio frequency plan would also have to

take into account annotations contained in theWRC final

radio regulations, which address international mobile

telecommunications (IMT) identified spectrum and have a

bearing on digital broadcasting migration.

The review did not deal with frequency migration strategy,

whichwillbeaddressedasaseparateprocess infinancial

years 2010/11 and 2011/12.

The Authority conducted public hearings on the national

radio frequency plan and submitted it to the Minister of

Communications as per the requirement of the ECA. It is

anticipated that the final national radio frequency planwill

bepublishedbytheendof thefirstquarterof the2010/11

financialyear.

Licensing of 2.6GHz and 3.5GHz

The Authority identified the remaining radio frequency

spectrum in the 3400 to 3600MHz (3.5GHz) and 2500 to

2690MHz (2.6GHz) bands as high-demand bands which

must be licensed through a competitive licensing process.

In the 2.6GHz band, the available spectrum is 125MHz,

followingtheassignmentsof50MHzand15MHztoSentech

andWBSrespectively.Inthe3.5GHzband,thereare28MHz

available, after Telkom and Neotel were assigned 56MHz

respectively.

The required industry consultations were completed and a

decision to licence 2.6GHz and 3.5GHz using an auction

process was communicated to the industry. The draft

regulationswerepublished(GovernmentGazetteNo32437

of 22 July 2009) and public hearings were held in October

2009. The invitation to apply for these frequencies will be

published by the end of the first quarter of the 2010/11

financialyear.

For future licensing of 2.6GHz, ICASA has opted for a

hybrid of option 1 and option 3 of ITU (ITU-R M. 1036-

3), following some European countries such as Norway

and the Netherlands. This will allow a technology-neutral

approachandenablemarketdemandtodeterminethefinal

configuration.Partiesinvolvedwillbeobligedtonegotiatein

order to mitigate interference problems.

Spectrum licensing regime and spectrum assignment

coordination procedures

This project was started to create certainty in the industry

about processes and procedures to be followed on assigning

and coordinating the national radio frequency spectrum.

The project considers international benchmarking on “best”

practices for licensing regimes and a comparative analysis is

undertaken on different spectrum assignment coordination

procedures. The project will be finalised in the 2010/11

financialyear.

Review of Radio Regulations

In conjunction with the aforementioned project, the review

of the radio regulations project sought to align all radio

25

Section 3.3

frequency related regulations to the current dispensation

and trends.

Radiocommunications Frequency Licensing unit

The Radiocommunication Frequency Licensing unit deals

with administration and issues various classes of radio

frequency licences. The unit issued the following licences

in 2009/10.

• Atotalnumberof47878applicationswerereceived,of

which75%wererenewals,16%werenewapplications

and4%werecancellations.

• 5%of receivedapplicationswerestillpendingat the

endofthe2009/10financialperiodandwerebrought

forwardtothe2010/11financialyear.

Of the 47 878 applications received 59% were for land

mobile and ski boats. Aeronautical, amateur and maritime

accountedfor40%.

Aeronautical 8286 1816 454 542

Amateur 3482 362 70 143

Fixed 80 30 20 36

Land Mobile including Ski Boats 23878 1458 488 673

Maritime 3940 652 194 86

Radio Dealer 318 630 101 23

Satellite 78 14 18 6

RenewalsNew App-lications

Cancel-lations Pending

Figure 1: Comparison of categories of radio frequency licences

Equipment Type Approval unit

The Equipment Type Approval unit deals with the

authorisation of products that meet minimum regulatory,

technical and safety requirements. The unit approves

radio frequency equipment, licences telecommunication

line terminal equipment (TLTE), switching systems (SWS)

and telephone line maintenance organisations (LMO), and

registers equipment suppliers.

The unit is also involved with standardisation. In the year

2009/10 it published anofficial list of approved standards

as a regulation. It started reviewing equipment type approval

processes in order to streamline the processes in line with

“best” practice and international trends.

The Equipment Type Approval unit has received 4 096

applications,ofwhich86%wereforRFequipment.98%of

the applications were new, leaving very few renewals and

unattended applications.

26

Broadcasting Spectrum

TheBroadcastingSpectrumUnitreceivedandanalysed194

technical requests for broadcasting frequency spectrum

licences. The terrestrial broadcasting frequency plan, which

incorporates a new plan for Digital Terrestrial Television (DTT)

and Digital mobile services, was published during the year

under review.

SPECTRUM MONITORING AND CONTROL

Spectrum Monitoring and Control (SM&C) is tasked with

identifying means and developing capability for radio

frequency spectrum monitoring and interference control.

It analyses data for frequency use and occupancy and for

the likelihood of interference and informs the authorisation,

compliance and enforcement and interference resolution

functions. The Department obtains measurements for quality

of service (QoS) to support consumer affairs programmes.

In the year under review the Department embarked on the

followingactivities:

• QualityofService (QoS)Monitoring: In 2009/10,

QoS monitoring was conducted on all three GSM

networks in the northern suburbs of Johannesburg.

Over 1000 calls were made during the measurement

procedure.

• Spectrum Audit: 450 to 470MHz and 790 to 862

MHzbandsmonitored in themetropolitanareasand

verifiedinpreparationforimplementationoftheWRC-

07 outcomes.

• Equipment specifications and procurement:

State-of-the-art monitoring equipment was procured

for spectrum monitoring during the World Cup and

beyond. The equipment included mobile direction

findersandhigh-rangespectrumanalysers.

• Mobilebasedmonitoringnetwork:A mobile based

IP packet data network using access point name (APN)

identifieswasdevelopedtoconnectremotemonitoring

sites,replacing64Kbpslinks.

RF Equipment 1950 0 44

TLTE 200 650 61

SWS 50 680 28

LMO-1 27 269 18

LMO-2 6 12 2

Supplier Registration 34 35 30

New Renewals Pending

Figure 2: Categories of type approval certification and type of applications

ENGINEERING AND TECHNOLOGY DIVISION

27

SectionCONSUMER AFFAIRS DIVISION

The role of the Consumer Affairs Division is to protect

consumers from unfair business practices and ensure access

to safe and good quality products, as well as to promote the

interest of people with disabilities in relation to the provision

of electronic communications, broadcasting and postal

services.

The Division comprises the Complaints and the Public

Education and Awareness Departments. In addition, the

division coordinates Consumer Advisory Panel activities and

supports the development of regulations.

COMPLAINTS DEPARTMENT

The Complaints Department receives and attends to

complaints from individual consumers (members of the

public) and corporate clients in relation to electronic

communications, broadcasting and postal services, facilities

and products.

During the year under review, the Complaints Department

focusedon improving itsefficienciesbyproducing30000

copies of the Complaints Manual, and distributed these to

the public. In addition workshops with various stakeholders

were held nationally.

Workshops to explain the Complaints Manual were held in

Gauteng(Germiston,KemptonPark,Roodepoort,Pretoria,

Springs and Benoni), Free State (Bloemfontein and Welkom),

KwaZulu-Natal (Durban, Empangeni-Ulundi combined),

North West (Rustenburg, Klerksdorp), Mpumalanga

(Nelspruit,Witbank),EasternCape(PortElizabethandEast

London) and Western Cape (Cape Town and Bellville).

In order to increase the footprint of the complaints redress

mechanism to the rural and underserviced areas, the

DepartmenthostedMobileComplaintsHelpDesks.

Complaints Handling

During the year under review, the Consumer Affairs

Department received and handled 3 390 consumer

complaints,656ofwhichwerecarriedoverfromtheprevious

financialyear.Atotalof2101complaintswereresolved in

the year under review. The remaining unresolved complaints

will be or have been forwarded to the Complaints and

Compliance Committee.

3.4

28

CONSUMER AFFAIRS DIVISION

Research

During the previous reporting year, the Division conducted

research on the impact of the consumer public education

and awareness programmes, and the impact of mobile

number portability.

Thefindingsasreleasedinthe2009/10yearareasfollows:

Mobile Number Portability (MNP)

• The penalties which could be applied against

subscribers terminating their contracts “early” could

be a barrier to portability.

• The requirements of the Regulation of Interception

of Communications Act (RICA) are likely to create

additional practical and legal difficulties for the

successful implementation of the portability process.

• Regulations do not address problems related to the

delays in effective number portability;

• TheenforcementmechanismsintheRegulationsneed

to be tightened;

• The control of theMNP bureau by the threemobile

operators creates the impression of excluding new

entrants from entering the market;

• Iftariffinformationweremoretransparent,consumers

might be more educated about their options and more

inclined to shop around.

Public Education and Awareness

• 79.2% of the respondents regard a cellphone as a

primary tool of communication.

Figure 3: Categories of Complaints Received

29

Section 3.4

• 62.4%oftherespondentshadaccesstoacellphone,

31.1%toatelephone,28%tothepost,7%toe-mail

and6.3%hadaccesstoafaxfacilities.

• 89.8%ofcellphoneuserssaidtheyusethecellphone

every day.

• AwarenesslevelsaboutICASA’smandateComplaints

HandlingandEducationprogrammesinruralareasare

low.

• Overall, respondents were satisfied with the service

they received from their service providers, where over

69% of respondents rated their service provided as

being good or excellent.

Two new research projects were undertaken during

the financial year, namely: Research on accessibility of

telecommunications, broadcasting and postal services by

peoplewith disabilities, and research on the consumers’

perceptions and experiences with regard to the ICT

services. The findings will be made available in the new

financialyear.

Monitoring of Compliance with Consumer Protection

Regulations

The Division monitored compliance by licensees with

consumerprotectionregulationsnamely:CodeofConduct

for Licensees, Code of People with Disabilities and Customer

Care Standards and Complaints Procedures for Postal

Services.

The monitoring was done in phases; during phases 1 and 2,

atotalof636CommunityServiceTelephones(CSTs)were

monitored,alongwith422Telkompublicpayphonesand67

PostOffices.

During the monitoring visits, there was a high level of

compliance amongst all licensees in providing lower counters

to cater for people who use wheelchairs. Almost all CSTs

investigated had such counters with phones installed. Lower

payphoneswerealsoinstalledonfixedlinestocaterforthe

needs of people using wheelchairs.

With regard to compliance by licensees in providing ramps for

wheelchair access, there was a very low level of compliance

amongst the majority of mobile operators.

In all CSTs monitored, there was still a great need for

improvement with regard to amplified phones with Short

Message Service (SMS) facilities.

In assessing compliance with the Code of Conduct for

Licensees Regulations, an anonymous shopping exercise

wasconducted.Atotalof42businessoutletswerevisited,

spread across all major licensees. It was found that the

majorityoflicenseeshavenotcompliedwiththeRegulations

byprovidingcopiesoftheCodeinotherofficial languages

upon request at their business outlets.

qUALITY OF SERVICE

TheEnd-UserandSubscriberServiceCharterRegulations

were published to ensure quality of service to end users

and consumers. During the year under review, consumers

in Gauteng experienced many dropped calls. This resulted

in the Authority intervening by meeting with the mobile

operators to assess the problem and its resolution.

The Consumer Affairs Division requested the Engineering

and Technology Division to monitor the quality of service

provided by mobile operators to consumers. The three

mobile operators, namely Vodacom, MTN and Cell C, were

monitored using the Global Positioning System (GPS) of the

Agilent Receiver during the drive tests and used Garmin

Quest during the stationary monitoring. The wireless network

monitoring software was set up to make calls on a one-on-

one basis to the three networks so that the quality of the

networks could be monitored. Monitoring was conducted at

30

variousareasinGauteng.Thefindingsofthereportwillbe

available in the new year.

PUBLIC EDUCATION AND AWARENESS

For the year under review, the Division conducted five

national campaigns, weekly public education and awareness

programmes, established Consumer Representative

Forums, placed notices in the print media, and produced

promotional material which was disseminated during the

public awareness events.

Public education and awareness

The Division developed a public awareness strategy which

was used as a guide for public awareness programmes.

The objective of the strategy was to ensure widespread

awareness among all stakeholders about consumer rights,

complaints processes, job opportunities in the ICT’s and

regulations related to consumers. A substantial number

of public awareness workshops and radio interviews were

conducted to reach out to communities.

The target audience for all public awareness workshops

and campaigns consisted of youth, learners, people

with disabilities and municipal representatives in various

districts and traditional leaders, among others. Public

presentations were conducted in different districts and local

municipalities.

National Campaigns

Twomajorcampaignswereconductedinthisfinancialyear

namely World Telecommunications and Information Society

Day and Youth Opportunities in the TCT Sector.

The Division embarked on a number of public awareness

campaigns in all the nine provinces to mark the day. The

themewas:“Protectingchildrenincyberspace”.

Other campaigns which were held on a smaller scale were

Postal Day, International Day of Persons with Disabilities,

andtheInternationalConsumerRightsDay.

A total of 3 000 promotional items were distributed in all

national campaigns, and workshops were held in all nine

provinces:

Youth Day

The Division visited several schools in the provinces to

share information about learnership programmes and job

opportunities in the industry. Most schools do not have

internet facilities and therefore acquiring IT skills remains a

problem.

Print media were used to advertise this event. The

Division distributed 6 000 promotional materials during

presentations.

World Post Day

World Post Day is celebrated every year on 9 October

internationally. It was declared World Post Day by the UPU

CongressheldinTokyo,Japanin1969.Sincethen,countries

across the world participate annually in the celebrations. On

the other hand the WPD set the tone for African Post Day

which is celebrated annually on 18 January. The theme was,

“The Post, a veritable means for bridging the digital gap”.

The 2009 theme is in line with the mandate of ICASA which

seeks to ensure that all South Africans have access to

postal services. Interviews were conducted on community

radio stations with regard to postal services. Messages were

based on customer care standards, postal address rollout

and delivery standards.

CONSUMER AFFAIRS DIVISION

31

Section 3.4

International Day of Persons With Disabilities

The theme for 2009 was: “Realizing the Millennium

Development Goals for All”. ICASA, in line with the United

Nations and the global community, celebrated the

International Day of Persons with Disabilities on 3 December.

The aim was to promote an understanding of disability

issues, the rights of persons with disabilities and gains to be

derived from the integration of persons with disabilities in all

aspects of public life in their communities.

The Division sourced promotional material for Disability month

and distributed copies of regulations in printed media.

World Consumer Rights Day

The theme for 2009 World Consumer Rights Day was

“Protecting children in cyberspace”. During this financial

year, the Authority held workshops in the different provinces.

According to the International Telecommunication Union

(ITU),over60%ofchildrenandteenagerstalkinchatrooms

daily.Of theseone infivechildrenarevulnerable toabuse

each year.

The Division printed 20 000 brochures on World Consumer

RightsDayandplacednoticesabouttheeventinspecialised

consumer and mainstream print media.

Establishment of Consumer Representative Forum

Six provinces were expected to establish the Consumer

RepresentativeFora,only fourwereable todoso,namely

Northern Cape, North West, Eastern Cape and Free State.

The fora consist of representatives from municipalities,

Community Development Workers (CDWs), youth groups,

representatives of people with disabilities and others. The

roleoftheCRFsistoprovideavoluntarycommunityservice

by representing the interests of consumers in the provinces.

Consumer Advisory Panel

The Electronic Communications Act provides for the

establishment of a Consumer Advisory Panel (CAP) to advise

the Authority on matters related to consumer protection. The

CAP held one quarterly meeting in the year under review

and there were no subsequent meetings as the entire panel

resigned. CAP members had a different interpretation of

their role from that of the Authority, and this resulted in their

resignations.

Support to Council

The Division provided human capacity and budgetary

resources support to Council in developing the following

consumerprotectionregulations:

• RegulationsonConveyanceofMail,and

• E-Rateregulations

Stakeholder Relations

During the year under review, the Division held a number of

meetings with operators to strengthen working relations. The

meetings focused on issues of consumer protection and the

need to work together in resolving consumer complaints.

Furthermore, the Division undertook scheduled meetings

with the Department of Public Service Administration (DPSA)

in Northern Cape, Limpopo, KwaZulu-Natal, Western Cape,

Eastern Cape, Free State and Mpumalanga provinces.

The aim of these meetings was to establish and maintain

relationships with organisations for people with disabilities

as well as to assess and measure the level of compliance by

licensees with consumer protection regulations.

An agreement was reached that the Authority and the

associations should work together to promote the rights

of people with disabilities through public education and

awareness interventions.

32

LEGAL DIVISION

TheLegaldivisionhasthefollowingmandate:

• tosafeguardICASA’sinterestinlitigationmatters;

• toreview,draft,vetandadviseonICASAregulations,

and documents impacting on ICASA’s regulatory

projects;

• to provide legal advise and support to Council,

Committees and various departments with in ICASA;

• toprovidelegalsupportonregulatoryandlegislative

drafting projects;

• toprovidegenerallegalsupporttoICASA;and

• to coordinate the activities of the Complaints and

Compliance Committee.

3.5.1 REGULATORY MATTERS

Islamic Unity Convention V ICASA and Others

TheIslamicUnityConvention(IUC),broadcastingasRadio

786, instituted review proceedings against the erstwhile

Broadcasting Monitoring and Complaints Committee’s

finding that it had contravened the Code of Conduct for

Broadcasters following a complaint lodged by the South

African Jewish Board of Deputies. The IUC also sought a

finalinterdictagainstthefurtheradjudicationofthecomplaint

(which emanates from a broadcast that took place in June

1998). The matter has been set down for hearing on 9 and

10 May 2011 in Cape Town.

Deukom (PTY) LTD V ICASA

DeukominstitutedreviewproceedingsagainsttheAuthority’s

decision to refuse it a subscription broadcasting service

licence. The Authority is opposing the application to have

its decision reviewed and set aside. Deukom is yet to file

itsreplyingaffidavitwhichimpactsonthefinalisationofthe

matter.

X-Link, Connectnet and Datalinx V ICASA

These entities launched an application for a declaratory order

application to the effect that they were not required under

the Telecommunications Act to be holders of a value added

network service licence and that only in terms of the ECA

were they required to hold a class electronic communication

service licence. The parties have reached an out-of-court

settlement and the application has been withdrawn.

Caxton and CTP Publishers & Printers (PTY) LTD v

ICASA and Others

CaxtoninstitutedareviewproceedingagainsttheAuthority’s

decision to grant a subscription broadcasting licence to

MultiChoice Africa (PTY) Ltd. The Authority opposed the

matter and the review application was dismissed in court.

Caxton was refused leave to appeal by the Supreme

Court of Appeal. The parties have both agreed to the CCC

adjudication and are waiting for the Committee (CCC) to set

a hearing date.

Vodacom (PTY) LTD v ICASA and Others (“Major

Operator”)

VodacominstitutedreviewproceedingstohaveRegulations

promulgated by the Authority, which declared it a major

operator, set aside. The Authority opposed the application.

The parties have reached an out-of-court settlement and

ICASA is awaiting a notice of withdrawal from the applicant.

Vodacom (Pty) LTD v ICASA and Others (Handset

Subsidies Regulations)

Vodacom launched review proceedings against the handset

subsidies regulations promulgated by ICASA. The parties

were exploring an out-of-court settlement as the application

had been overtaken by events and both parties agreed to

settle the matter out of court. ICASA is now awaiting a notice

of withdrawal from the applicant.

33

Section 3.5

Black Earth Communications (Pty) LTD v ICASA

Black Earth Communications (BEC) instituted review

proceedingsagainstICASA’sdecisiontorefusetograntita

satellite broadcasting licence on the grounds that BEC failed

to comply with the provisions of section 51(a),(b),(d),(e) of the

ECA and with the local content regulation. In its court papers,

BEC submits that it was not afforded a fair opportunity to

address the issues required under section 51 as well as the

content regulation. A hearing date is being arranged.

Directory Solution CC v ICASA

Directory Solution launched an application to compel ICASA

to investigate a complaint it lodged against Telkom Directory

Services. Directory Solution has since approached the

Competition Commission (CC) for relief and adjudication of

its complaint. Directory Solutions has withdrawn its review

applicationagainstICASA.Thematterisfinalised.

Len Marshall v ICASA

Mr Marshall instituted civil proceedings against ICASA for

the repayment of licence fees he allegedly overpaid to ICASA

amountingtoR95982.MrMarshallhaswithdrawnhiscourt

action.Thematterhasbeenfinalised.

Radio Pulpit v ICASA

RadioPulpit institutedreviewproceedingsagainst ICASA’s

decisionnottograntitthe729kHzmediumfrequencyinthe

Western Cape. The parties have exchanged pleadings and

thematter istobeargued incourton6and7September

2010.IntheNorthernGautengHighCourt.

COSATU v ICASA, Vodacom And Others

COSATU instituted review proceedings against ICASA’s

decision in which ICASA accepted the notification for the

disposal of shares in Vodacom in favour of Vodafone by

Telkom SA Ltd. ICASA is opposing the matter but it appears

that COSATU is no longer intent on pursuing the matter.

Telkom SA LTD v ICASA

Telkom instituted review proceedings against the licence

fees regulations on the basis that proper procedure was not

followed in their promulgation. ICASA is opposing the matter

and the parties are exchanging pleadings.

Radio Algoa v ICASA

RadioAlgoa institutedreviewproceedingsagainst ICASA’s

decision to refuse it an extension to cover the Southern Cape

and parts of the Western Cape and not only the Eastern

Cape. ICASA is opposing the matter and it appears that

RadioAlgoaisnolongerintentonpursuingthematter.

TETRA Mobile v ICASA and Another

Tetra Mobile launched an urgent application and a review

application against the decision taken by ICASA inspectors

toseizesomeofitselectroniccommunicationequipmentin

terms of section 17 of the ICASA Act. This was done based on

asearchandseizurewarrantissuedbyamagistrateinKwa-

Zulu Natal. The court ordered the return of the equipment

and thematter has sincebeen finalised on the basis that

theICASAinspectorsmayapproachtheHighCourtfornew

searchandseizurewarrants.

YODATA v ICASA and Another

Yodata launched an urgent application against ICASA and

oneof itsofficials seekinganorder for ICASA toconvene

a Complaints and Compliance Committee (CCC) hearing to

adjudicate its alleged non compliance with the type approval

regulations and for the return of some of its goods. The court

ruled that ICASAmay retain samplesof thegoods seized

and which may be used to lead evidence before the CCC.

34

LEGAL DIVISION

WAPA-Amobia v ICASA

The Wireless Applications Association together with Amobia

launched an application for a declaratory order to the effect

that value added network service licensees under the

Telecommunications Act could provide their own network

infrastructure as a service to their customers. The application

has been withdrawn.

Freedom Of Expression Institute v ICASA and Others

FXIinstitutedreviewproceedingsagainsttheCCC’sdecision

not to rule in its favour in a complaint it had lodged against

the SABC following the “Blacklisting” matter. The parties are

exchanging pleadings.

On-Digital-Media v Super 5 Media and ICASA

ODM filed an urgent review application to interdict and

restrain Super 5 (formerly Telkom Media) from providing

commercial subscription broadcasting services; and also

filed a review application against ICASA for approving the

transferring of the licence from Telkom Media to Super 5

media. The urgent application was dismissed in court where

after ODM withdrew the review application.

NAFCOC Broadcasting Consortium v ICASA

Nafcoc instituted review proceedings against ICASA

following the promulgation of the Digital Terrestrial

Television Regulations, 2009. ICASA afforded interested

parties a further opportunity to comment, rendering the

review application academic. NAFCOC has not withdrawn

the application.

E-TV v ICASA and Others

e-TV launched an urgent review application to interdict the

implementation of the DTT regulations. ICASA afforded

interested parties a further opportunity to comment,

rendering the review application academic. e-TV withdrew

both its applications.

NEOTEL v ICASA

Neotel has lodged an application to review the Licence Fees

Regulationsintermsofwhichitisliabletopaylicencefees

amountingtoR100million.TheAuthorityhaslodgedacourt

application in thematterandNeotel is tofile itsanswering

papers. The parties are still exchanging pleadings and the

process is underway.

Mobile TV v ICASA

ICASA was served with an urgent application by Mobile TV to

interdict the impeding licensing process of mobile television.

ICASA opposed the application and the court dismissed the

urgent application with costs.

3.5.2 LITIGATION – NON-REGULATORY MATTERS

Nothnagel v RAF and ICASA

ICASA was served with a third party notice by the Road

Accident Fund (RAF). The RAF sought to join ICASA in a

matter in which the spouse of a late former ICASA employee

instituted a damages claim arising out of a motor vehicle

accident in an action for damages and loss of support.

The matter has been referred to ICASA‘s insurers who are

defending the action. Further contact has been made with

Insurers with regard to the claim; who have advised that

theclaimanthadnotcontactedRAFtodateandcouldnot

be traced. The matter will be kept in abeyance for regular

follow-ups on developments.

eThekwini Municipality/ICASA

Summons was received from eThekwini Municipality in

terms of the Kwa-Zulu Natal Joint Services Act, for the claim

ofRegionalServicesLevyarrearsamountingtoR38908,98

35

Section 3.5

asattheperiodendedJune2006.Thematterwassettled

out of court.

3.5.3 LITIGATION - LABOUR MATTERS

The divisions handled a number of litigations in relation to

labour matters, the details are contained in the Performance

Information section.

3.5.4 COMPLAINTS AND COMPLIANCE COMMITTEE

REPORT: 2009/10

The Complaints and Compliance Committee is mandated

to investigate and adjudicate complaints by or against

licensees.

The Committee consists of seven members and as at 31

March2010,itcomprisesthefollowingmembers:

1 ChairpersonoftheCCC-HonourableMrJusticeDavid

RathaMokgoatlheng(JudgeoftheHighCourt);

2 ICASA Council Member – Professor Jacobus van

RooyenSC;

3 MsTumeka(Matshoba)Ramuedzisi;

4 MsNomvelisoNtanjana;

5 Mr Surendra Thakur; and

6 ProfessorPietDelport

During the period under review, the CCC adjudicated and

madefindingsonthefollowingcomplaints:

Finalised Matters

Parties in Dispute Nature of Dispute CCC Findings

SouthAfricanPostOffice

(SAPO)R10millionPenalty

The Authority referred a complaint against

SAPO for failure to meet its universal

services roll-out target

TheCCCnullifiedthedecisionofits

predecessor,thePostalRegulator,to

imposeaR10millionfine

Electronic Communications

Network (ECN) v MTN

ECN complained that MTN is

discriminating among comparable types of

interconnection in that it terminates mobile

trafficatR0.89andterminatesECNat

R1.25eventhoughitisprovidingthesame

service to mobile network operators and

ECN.

The parties settled the matter prior to its

adjudication

Quinton Venter v South African

PostOffice(SAPO)

The complainant made allegations that

SAPO failed to comply with section 5 of the

Customer Care Standards, which state that

SAPO should render quality service and be

prepared to go the extra mile.

CCC dismissed the matter on the basis

that the Code of Conduct relied upon

when the allegations were made was

not promulgated and therefore not

enforceable.

36

LEGAL DIVISION

Parties in Dispute Nature of Dispute CCC Findings

Eagles Auction v South African

PostOffice(SAPO)

Auction Sales CC. bought goods from

Thailand to the value of US$5858.00 and

SAPO centre acknowledged receipt of the

goods; however; they informed Auction

Sales that the goods were lost on its way

to the client.

CCC dismissed the matter on the basis

that the Code of Conduct relied upon

when the allegations were made was

not promulgated and therefore not

enforceable.

Engineering and Technology of

ICASA v Internet Solutions (IS)

ICASA alleged that Internet Solutions

used non type-approved equipment for

backhaul links for their wireless network

inthe24GHzISMFrequencyband,thus

contravening section 35 of the ECA.

IS conceded the contravention and to the

forfeiture of the equipment and was further

finedR20000.

Licensing and Compliance of

ICASA v Voice of Tembisa (VOT)

The Licensing and Compliance Division

of ICASA referred a complaint to the CCC

thatthelicenseefailedtopaytheR18

000fineimposedontheradiostation

subsequent to CCC hearings held in 2008.

The CCC dismissed the complaint on the

grounds that the charge sheet drafted by

the complainant was defective.

Pending

Caxton v

M-Net/MultiChoice

Complaint lodged by Caxton against

MultiChoice for alleged contravention of sections

64;65;and66oftheECA.

Awaiting a mutually convenient date

for the adjudication of the complaint

Girish K. Sharma v MTN Complained that the contract that he received

from MTN is not the one he was promised when

he spoke telephonically to the consultant at

MTN.

Matter is partly heard

ICASA v YODATA (PTY) LTD Unlabelled electronic communications

equipment was provided by Yodata Electronics

(Pty)LtdtoMassmartfromwhereitwasseized

by ICASA inspectors in December 2008.

CCC still considering the merits

Thinta Thinta Telecoms (Pty) Ltd

vs. Telkom SA

ThintaThintaTelecoms(PTY)Ltdfileda

complaint against Telkom; alleging that Telkom

has violated some parts of the interconnection

agreement.

CCC to consider the complaint in

chambers

37

Section 3.5

38

39

40

HUMAN RESOURCES DIVISION

TheHumanResourcesDivisionIsresponsiblefortheneeds

oftheAuthorityinrelationto:

• Facilitethetalentacquisitionprocess;

• Champion organisational health and employee

wellness to mitigate risk and ensure sustainability

(individual and organisation);

• Ensure that business meets human resources

management, legal and statutory requirements;

• EnsureappropriateandlegallycompliantHRpolicies,

practices and procedures;

• Facilitate the alignment between organisational

strategic objectives and individual performance and

development;

• DeliverefficientHRtransactionalbusinessprocesses

and labour cost monitoring;

• Deliver business intelligence for decision making on

HR matters (remuneration, recruitment, retention,

organisational culture etc).

Organisational Structure

An organisational structure review has been commissioned

to conduct an organisational study aimed at reviewing the

configuration and capacity, and facilitating alignment with

the revised ICASA mandate. The organisational realignment

of ICASA iscritical for theRegulator tobeanefficientand

effective organisation. The project methodology includes

quantitative and qualitative analysis of the organisation,

business process review, interaction with stakeholders and

benchmarking with similar organisations globally. The study

comprises three phases. The initial phase commenced

in October 2009 and the draft recommendation report

is expected at the end May 2010 for consideration by

Executive management and Council. This will be followed

by a consultative process with the relevant stakeholders and

the implementation of recommendations.

Talent Sourcing

The talent sourcing policy has been revised to enable the

organisation to effectively source capable talent now and

in the future. The talent planning process is aligned with

organisational equity and strategic priorities. The talent

sourcing strategy includes a competency based assessment

frameworktoenabletheorganisationtoidentifybestfitand

reasonablypredictthejobapplicants’possiblesuccesslevel

before they are hired.

Asuitablyqualifiedselectionpanelengagesonallcandidate

appointments. An induction programme has been revised

to focus on better integration and building a competent and

enthusiasticnewlyhiredcommunity.HumanResources is

intheprocessofcommissioningane-Recruitmentsystem

which will enhance the screening capability, minimise margin

of error and increase turnaround times to ensure that only

thebestqualifiedcandidatesareconsidered.Atotalof55

permanentand45temporarypositionswerefilledduringthe

reporting period.

Talent Development

An annual training plan has been developed based on

business imperatives. Local and international learning

interventions were sourced and delivered by reputable

service providers across functional areas and levels of

work.

R4.2 million was allocated to learning and development

to ensure adequate and effective human resources

development. An executive development programme

aimed at enhancing leadership capacity and capability

has been designed and delivered by Gordon Institute of

Business Science. Phase 1 of the executive development

programme was completed in March 2010. Some

outcomes of this learning solution are the development of

a leadership framework and an organisational effectiveness

measurement tool for ICASA. The leadership framework is

41

Section 3.6

aimed at identifying critical behaviours that are essential for

theefficiencyandeffectivenessof theorganisation.These

behaviours will underpin all business and talent management

practises. The organisational scorecard on the other hand is

aimed at designing organisational key success factors and

other relevant measurements.

A total of 50 learning solutions were delivered, and 1007

delegatesparticipatedintraining.Thebeneficiariesofsome

ofthecoursesprovidedduringtheyearwere57%women

and 43% male employees. Performance management,

employee self-service, Microsoft Office, coaching and

emotional intelligence were offered to the entire organisation

across all functional areas. In addition, several divisions

were recipients of specialised training, particularly as a

consequence of contracting specialist services with external

vendors.

Performance Management

ICASA is in the process of embedding a performance

management work ethic through a framework that was

introduced in 2007 and has been continually enhanced for

appropriateness. The performance management policy has

been revised to align to best practice and an integrated model

that supports the talent management strategy for optimum

success levels. Critical to this process is a mechanism

of translating ICASA’S broader objectives into individual

performance expectations. This means that employees

acrosstheorganizationshouldhaveaclearunderstanding

of the performance expectations and have the benefit of

regular performance conversations, coaching and feedback

from line managers in achieving effective performance. Self

assessments are core to the performance management

system. This process allows employees to take ownership

of performance outcomes by critical self- evaluation prior to

receiving feedback from line managers. New employees are

expected to have performance contracts within two months

ofappointment.92%ofstaffhadenteredintoperformance

agreementsatthebeginningofthefinancialyear.

Employment Equity

ICASA is committed to the principles of employment equity

and seeks to create an organisational profile that reflects

the diversity of the South African society. There has been

a steady growth of women into senior positions and ICASA

endeavours to promote gender equity in all employment

practices.Currently49%ofICASAstaffarewomen.Although

therearetwowomen(22%)intheEbandcategory,thereis

a strong feeder base for succession planning in the Senior

Manager(D4)andManager(D1)categories.Thereisalsoa

concerted effort to recruit and develop women at all levels

and across functional areas. The organisation’s disability

complementis1.67%ofheadcount.

Thetotalheadcounthasincreasedby5.6%,from339inthe

previousfinancialyearto358inthe2009/10financialyear.

Substantive Negotiations

Substantive negotiations with the Communication Workers

Union for the period from 1 July 2009 to 30 June 2010

settled on a salary increase of 10% across the board by

mid November 2009. It was agreed that the salary increase

was to be paid on 25 November 2009, retrospectively to 1

July 2009. The parties agreed that outstanding substantive

matters would be negotiated at a later stage with a

commitment to conclude the matters by 30 November 2009.

Outstanding matters remain unresolved and parties are in

the process of seeking private mediation which is in line with

the recognition agreement.

Remuneration and Benefits

ICASAhasappointedaRemunerationCommittee(REMCO)

asanadvisorybodyoncompensationandbenefitsmatters.

REMCO assists ICASA with the review of current reward

practices and the formulation of a remuneration strategy

aimed at attracting and retaining key talent. The strategy

encompasses differentiation based on market dynamics,

42

performance, critical skills and scarce skills. The development

of a dual career stream is in the pipeline and awaiting

the confirmation of the organisational structure and core

competenceprofile.Thisisbasedonaspecialist/generalist

skillsandcompetenceprofile,ensuringthatspecialistswithin

the organisation are recognised, developed, deployed and

rewarded accordingly.

Medical Aid Schemes

ICASA is in the process of reducing the number of employee

medical aid schemes from five to three. A benchmark

studywasdonetodeterminethecost,benefitsandservice

offerings currently available to the employees. The study

illustrated that it is not cost effective to maintain more than

three medical aid schemes.

Pension Fund

The Pension Fund Management Committee was established

in the year. The role of the committee is to represent and

protect the interests of the pension scheme members and

the employer.

Terminations

The retention of existing employees is an ongoing priority and

attrition rates are tracked. Labour turnover for 2009/10 was

8%.Exit interviewsandthetenureofdepartingemployees

are analysed to understand the underlying and potential

causes for attrition. This information is used to review and

upgrade the retention practices, policies and systems. This

process is also a critical tool to identify hidden challenges

affecting employee loyalty, development, performance and

engagement. Some 53.3% of departing employees cited

bettercompensationandbenefitsasareasonforleaving.

Employee Wellness Programme

There was an increase in the number of management referrals

in which supervisors took the initiative to recommend external

professionalcounsellingandadviceservicesforemployees’

support and assistance as compared to the previous year.

Theoverallutilisationrateof14.3%fortheserviceexceeds

the sector average of 8%. In all, 66.5% of the population

participated in the annual employee wellness week which

offers medical screening and advice for early detection and

management of health risks.

HUMAN RESOURCES DIVISION

43

Section

Other support services include the Communications

and International Relations, Regions, Administration and

Information Technology.

Communications and International Relations

The Communications department is responsible for the

external and internal communications functions, including

stakeholder relations.

International Relations department coordinates the

Authority’s participation and representation to relevant

international fora, events and conferences, receives

international delegations on fact-findingmissions toSouth

AfricaandensurestheAuthority’smembershipsubscription

to relevant organisations.

Regions

TheRegions’departmentresponsibilityistocoordinatethe

Authority’sactivitiesintheregionalofficesofJohannesburg,

Pretoria, Bloemfontein, Cape Town, Port Elizabeth and

Durban.

This responsibility is two-fold: toconductpublic/consumer

awareness programs in all the nine provinces of the country,

and to conduct inspections and investigations regarding

signal interferences and illegal frequency spectrum usage.

In cases where illegal usage is identified, the Authority’s

inspectors have powers to institute criminal prosecutions

andtoseizeandconfiscateillegalequipment.Ontheother

hand, incidents of interference among licensed operators

are resolved technically, for example, the reduction of power

wattage for signal propagation.

Administration

The Administration division is responsible for Library

Services, Records and Documentation Management,

Security Services, Occupational Health and Safety,

SwitchboardandReceptionAreas,FacilitiesServices,Fleet

Management, Asset Management and management of

corporate cellphone accounts.

Information Technology

The Information Technology department provides application,

hardwareandsoftwaresupporttoalltheAuthority’sdivisions

and support services. Highlights for the year include the

replacement of Novell and Groupwise software by Microsoft

and the customisation of the JD Edwards for the spectrum

system.

3.6

44

45

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S

licen

ces

issu

ed

I-E

CN

S li

cenc

es h

ave

been

gra

nted

to

succ

essf

ul a

pplic

ants

.

1.5.

Lic

ensi

ng o

f

Bro

adba

nd IN

FRACO

1.5.

1. G

rant

and

issu

e

Indi

vidu

al E

CN

S a

nd In

divi

dual

EC

S to

Bro

adba

nd IN

FRACO

.

1 E

CN

S a

nd 1

EC

S

1 E

CN

S a

nd 1

EC

S li

cenc

es

issu

ed

I-E

CN

S li

cenc

e gr

ante

d an

d I-

EC

S li

cenc

e

refu

sed.

47

Section 4L

ICE

NS

ING

AN

D C

OM

PL

IAN

CE

DIV

ISIO

NS

trat

egic

ob

jec

tive

Key

per

form

ance

Are

aK

ey p

erfo

rman

ce In

dic

ato

r

(ou

tpu

t)

Un

it o

f

mea

sure

men

t

Targ

et 2

009

/10

Ove

rall

pro

gre

ss d

uri

ng

th

e 20

09/1

0

fin

anci

al y

ear

2. T

o en

sure

univ

ersa

l acc

ess

and

serv

ice

2.1.

Am

endm

ents

and

tran

sfer

s of

Ele

ctro

nic

Com

mun

icat

ions

Net

wor

k

Ser

vice

(EC

NS

), E

CS

and

broa

dcas

ting

serv

ice

(BS

)

licen

ces

2.1.

1. C

onsi

der

and

deci

de

on lo

dged

app

licat

ions

for

amen

dmen

ts a

nd tr

ansf

ers

by

exis

ting

EC

NS

, EC

S a

nd B

S

licen

ces

Issu

e of

lice

nces

5 E

CN

S a

nd E

CS

,

and

19 fo

r B

S

licen

ces

1 I-

EC

NS

and

1 I-

EC

S a

men

dmen

t. 9

I-B

S

amen

dmen

t. 7

I-E

CN

S a

nd 7

I-E

CS

tran

fer.

1-IBSand

1I-BTVnotification.8I-BS

amen

dmen

t ref

used

.

3. L

iber

alis

atio

n

of s

ecto

r, ac

cess

to b

asic

ser

vice

s

and

econ

omic

grow

th

3.1.Registrationofclass

licen

ces

and

cour

ier

com

pani

es

3.1.

1. A

ppro

vals

of t

he

regi

stra

tions

for

appr

oxim

atel

y

50 c

lass

EC

S a

nd E

CN

S

and

10 c

omm

unity

sou

nd

broa

dcas

ting

serv

ices

and

regi

stra

tion

of 2

0 co

urie

r

com

pani

es

Registrationof

clas

s lic

ence

s an

d

cour

ier

serv

ices

50 c

lass

EC

S a

nd

EC

NS

and

25

com

mun

ity s

ound

broa

dcas

ting

serv

ices

and

regi

stra

tion

of 3

0 co

urie

r

com

pani

es.

Thefollowinglicenceswereissued:

58C-ECS.55:C

-ECNS.27C-sou

nd

broa

dcas

ting.

21

Cou

rier

serv

ices

. Tw

o

com

mun

ity T

V. O

ne lo

w p

ower

. One

Sou

nd

broa

dcas

ting

refu

sed.

3.2.Reviewstand

ardterm

s

and

cond

ition

s

3.2.

1.P

ublis

h th

e re

vise

d

stan

dard

ter

ms

and

cond

ition

s

Regulations

Reviewed

Regulations

Pub

lishe

d

revi

ewed

Regulations

RevisedStand

ardTerm

sandCon

ditions

Regulations,and

revisedProcessand

proced

ureRegulationshavebe

enapp

roved

forfinalpub

lication.

CO

MP

LIA

NC

E

Str

ateg

ic g

oal

: Str

eng

then

reg

ula

tio

nO

per

atio

nal

Go

al: E

nsu

re c

om

plia

nce

by

licen

sees

wit

h E

CA

, Reg

ula

tio

ns

and

lice

nce

ter

ms

and

co

nd

itio

ns

4.Strengthen

regu

latio

n

4.1.M

onitoringofSAPO

licen

ce c

ondi

tions

.

4.1.1.M

onitoringvisitsto

SA

PO

pos

tal o

utle

ts in

all

nine

prov

ince

s an

d pr

oduc

tion

of

Com

plia

nce

repo

rt

Com

plia

nce

repo

rt

48m

onitoring

visi

ts

TheDivisionwasabletoverifyallSAPO’s

newinfrastructureasrecorde

dinth

eirfirst

and

seco

nd q

uart

er r

epor

ts,

4.2.M

onitoringof

unre

serv

ed p

osta

l ser

vice

(cou

rier

com

pani

es)

4.2.1.M

onitoringvisitsto

cour

ier

com

pani

es in

all

nine

prov

ince

s an

d pr

oduc

tion

of

Com

plia

nce

repo

rt

Com

plia

nce

repo

rt

36m

onitoring

visi

ts

Aud

it of

unr

eser

ved

post

al s

ervi

ces

in

resp

ect o

f the

und

erta

king

s m

ade

in

term

s of

Sec

tion

22 o

f the

Pos

tal S

ervi

ces

Am

endm

ent A

ct w

as d

one

and

a re

port

was

com

pile

d.

4

48

LIC

EN

SIN

G A

ND

CO

MP

LIA

NC

E D

IVIS

ION

Str

ateg

ic

ob

jec

tive

Key

per

form

ance

Are

aK

ey p

erfo

rman

ce In

dic

ato

r

(ou

tpu

t)

Un

it o

f

mea

sure

men

t

Targ

et 2

009

/10

Ove

rall

pro

gre

ss d

uri

ng

th

e 20

09/1

0

fin

anci

al y

ear

4.Strengthen

regu

latio

n

(con

tinue

d)

4.3.M

onitoringofECS/

EC

NS

lice

nsee

s

4.3.1.M

onitoringvisitsinall

nine

pro

vinc

es a

nd p

rodu

ctio

n

of C

ompl

ianc

e re

port

.

Com

plia

nce

repo

rt

36m

onitoring

visi

ts

TheAutho

rityissuednew

licenceson16

Janu

ary

2009

. Aud

it on

com

plia

nce

by E

CS

and

EC

NS

lice

nsee

s w

as c

ondu

cted

.

4.4.M

onitoringof

broa

dcas

ting

serv

ices

4.4.1.M

onitoringvisitsinall

nine

pro

vinc

es a

nd p

rodu

ctio

n

of C

ompl

ianc

e re

port

.

Com

plia

nce

repo

rt

48m

onitoring

visi

ts

86m

onitoringvisitswerecond

uctedforthe

2009

/10financialyear.85

postvisitsrep

orts

have

bee

n co

mpi

led,

exc

ept f

or o

ne r

epor

t,

whi

ch i

s in

the

proc

ess

of b

eing

com

pile

d;

Reenb

oogCom

munityRadio.

4.5.Nationaland

Provincial

Gov

ernm

ent

elec

tions

4.5.1.M

onitoringofnational

and

prov

inci

al g

over

nmen

t

elec

tions

to

ensu

re fa

ir

cove

rage

and

com

plia

nce

with

regu

latio

ns g

over

ning

ele

ctio

ns

and

prod

uctio

n of

Com

plia

nce

repo

rt.

Com

plia

nce

Rep

ort

Com

plia

nce

Rep

ort

Mon

itoringwasfinalisedon31M

ay200

9.

Theconsultantssubm

ittedth

eirfinalanalysis

of a

ll ca

ptur

ed d

ata

on 2

0 A

ugus

t 200

9. A

draftelectionsrep

orth

asbeenfinalised

4.6.Localgovernm

ent

elec

tions

4.6.1.M

onitoringoflocal

gove

rnm

ent e

lect

ions

to e

nsur

e

fair

cove

rage

and

com

plia

nce

with

reg

ulat

ions

gov

erni

ng lo

cal

elec

tions

and

pro

duct

ion

of

Com

plia

nce

repo

rt.

Com

plia

nce

Rep

ort

Com

plia

nce

Rep

ort

Loca

l gov

ernm

ent e

lect

ions

pro

ject

was

deferredto

2010/11financialyear,aselection

will

only

take

pla

ce in

201

1.

4.7.Com

plianceProcedu

re

ManualR

egulations

4.7.1.Pub

licationofRegulations

on th

e C

ompl

ianc

e P

roce

dure

Man

ual.

Pub

licat

ion

of th

e

regu

latio

ns

Pub

licat

ion

of th

e

regu

latio

ns

Dra

ft r

egul

atio

ns w

ere

publ

ishe

d on

19 M

arch

201

0.

5. A

cces

s to

basi

c se

rvic

es

5.1.ReviewofU

niversal

Ser

vice

and

Acc

ess

Obl

igat

ions

(U

SA

Os)

5.1.

1. D

evel

opm

ent a

nd

publ

icat

ion

of U

SA

Os

polic

y

fram

ewor

k.

Pub

licat

ion

of

revi

sed

US

AO

fram

ewor

k

Pub

licat

ion

of

revi

sed

US

AO

fram

ewor

k

A r

epor

t was

com

pile

d an

d th

e di

scus

sion

docu

men

t is

curr

ently

und

er r

evie

w

5.2.

Dev

elop

US

AO

Regulations

5.2.

1. P

ublic

atio

n of

regu

latio

ns o

n U

SA

Os

in te

rms

ofs8(4).

Pub

licat

ion

of

US

OA

reg

ulat

ions

Pub

licat

ion

of

US

OA

reg

ulat

ions

The

proj

ect f

orm

s pa

rt o

f the

sec

ond

phas

e

ofth

eReviewofU

niversalServiceand

Acc

ess

Obl

igat

ions

Fra

mew

ork.

The

pro

ject

wasdeferredtoth

e2010/11financialyear.

49

Section 4M

AR

KE

TS

AN

D C

OM

PE

TIT

ION

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

2009

/10

fina

ncia

l yea

r M

arke

ts a

nd C

om

pet

itio

n A

naly

sis

Str

ateg

ic G

oal

: Li

ber

alis

atio

n o

f th

e IC

T s

ecto

rO

per

atio

nal g

oal

: In

tro

duc

e a

com

pre

hens

ive

com

pet

itio

n fr

amew

ork

1. T

o pr

omot

e

sust

aina

ble,

sta

ble,

dyna

mic

and

inno

vativ

e co

mpe

titio

n

in th

e el

ectr

onic

com

mun

icat

ions

,

broa

dcas

ting

and

post

al

sect

ors

to d

eliv

er h

igh

qual

ity s

ervi

ces

at

com

petit

ive

pric

es.

1.1.

Fra

mew

ork

proc

edur

es fo

r

impl

emen

tatio

n of

sec

tion

67oftheECA

1.1.

1. G

uide

lines

sett

ing

out t

he

proc

edur

es a

nd

proc

esse

s th

at th

e

Aut

horit

y w

ill ad

opt

Wor

ksho

p, re

port

,

publ

ic n

otic

e

Gui

delin

e fo

r co

nduc

ting

mar

ket r

evie

ws

Pro

ject

com

plet

ed

1.2.

Mar

ket s

tudi

es in

term

sofS.67oftheECA.

1.2.

1. M

arke

t stu

dies

repo

rtsforidentified

rele

vant

mar

kets

Reports

Pub

lish

mar

ket s

tudi

es

repo

rtsforidentified

rele

vant

mar

kets

Pro

ject

com

plet

ed

1.3.

Ana

lysi

s of

CO

AC

AM

repo

rtsfilings(m

obile

andfixedoperators)and

inve

stig

ate

prel

imin

ary

repo

rtin

g re

quire

men

ts

pert

aini

ng to

pro

-

com

petit

ive

rem

edie

s.

1.3.1.Reporto

nthe

revi

ew /

ana

lysi

s of

RegulatoryFinancial

Reporting(RFR

).

Set

ting

out i

nter

nal

conc

eptu

al fr

amew

ork

forRFR

requirements

pert

aini

ng to

prop

osed

pro

-

com

petit

ive

rem

edie

s.

Reports

Dis

cuss

ion

docu

men

t on

marketd

efinition,SHPand

effe

ctiv

enes

s of

com

petit

ion

Pro

ject

com

plet

ed.

1.4.Reviewtheeconom

ic

regu

lato

ry fr

amew

ork

for

the

post

al s

ecto

r an

d

developtheRegulatory

FinancialR

eporting(RFR

)

requ

irem

ents

per

tain

ing

to

the

post

al s

ecto

r

1.4.1.Reportand

draf

t reg

ulat

ions

on th

e ec

onom

ic

regu

lato

ry fr

amew

ork;

andRFR

requirements

pert

aini

ng to

the

post

al s

ecto

r.

Reports

Pub

lish

repo

rtP

roje

ct to

be

com

plet

ed in

the

new

financialyear.

1.5.ReviewthePriceCap

1.5.

1. In

tern

al re

port

s

revi

ewin

g P

rice

Cap

Report

Pub

lish

revi

sed

pric

e ca

pP

roje

ct c

ompl

eted

.

4

50

MA

RK

ET

S A

ND

CO

MP

ET

ITIO

N D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

2009

/10

fina

ncia

l yea

r

1. T

o pr

omot

e

sust

aina

ble,

sta

ble,

dyna

mic

and

inno

vativ

e co

mpe

titio

n

in th

e el

ectr

onic

com

mun

icat

ions

,

broa

dcas

ting

and

post

al s

ecto

rs to

del

iver

high

qua

lity

serv

ices

at c

ompe

titiv

e pr

ices

(con

tinue

d)

1.6.Framew

ork

for

com

petit

ion

in

broa

dcas

ting.

1.6.1.Report

on B

road

cast

ing

Com

petit

ion

Fram

ewor

k.

Reports

Inte

rnal

repo

rt to

faci

litat

e

plan

ning

Pro

ject

com

plet

ed,

2. T

o pr

omot

e

com

petit

ion

with

in th

e

post

al s

ecto

r an

d to

prov

ide

post

al s

ervi

ces

that

are

resp

onsi

ve to

cons

umer

nee

ds

2.1.Reviewofunreserved

post

al s

ervi

ces

(car

ry o

ver

fromthepreviousfinancial

year

)

2.1.1.Regulations

for

unre

serv

ed p

osta

l

serv

ices

.

Reports,

Regulations

Regulationsforunreserved

post

al s

ervi

ces

Projectcom

pleted.R

egulations

publ

ishe

d on

8 J

anua

ry 2

010,

and

will

com

e in

to fo

rce

in J

uly

2010

3. P

rom

ote

acce

ss

to b

asic

ser

vice

s at

affo

rdab

le p

rices

3.1.ReviewofS

APO’s

2010/11tarifffiling

3.1.

1. T

ariff

s re

view

gazetted.

Dec

isio

n pu

blis

hed

inGazette

Pro

ject

com

plet

ed.

4.Reducecostby

prom

otin

g an

d fa

cilit

atin

g

inte

rope

rabi

lity

and

inte

rcon

nect

ion

of

netw

orks

and

acc

ess

to

faci

litie

s

4.1.Coherentand

mod

ular

fram

ewor

k fo

r

who

lesa

le re

gula

tion

appl

icab

le to

iEC

NS

and

EC

S li

cens

ees.

4.1.1.Reporto

n

fram

ewor

k fo

r

who

lesa

le re

gula

tion

appl

icab

le to

iEC

NS

and

EC

S li

cens

ees.

Reports,

wor

ksho

ps,

publ

ic n

otic

e

Pro

ject

com

plet

ed.

4.2.Facilitate

inte

rcon

nect

ion

and

faci

litie

s le

asin

g.

4.2.1.Framew

ork

Inte

rcon

nect

ion

and

Faci

litie

s Le

asin

g

Regulations.

Reports,

regu

latio

ns

Fina

l reg

ulat

ions

Pro

ject

com

plet

ed.

51

Section 4M

AR

KE

TS

AN

D C

OM

PE

TIT

ION

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

2009

/10

fina

ncia

l yea

r

4.3.Im

plem

entation

and

adm

inis

trat

ion

of In

terc

onne

ctio

n

and

Faci

litie

s Le

asin

g

Regulations.

4.3.1.Database

man

agem

ent s

yste

m

for

all a

gree

men

ts.

Reports

Dat

abas

e in

ope

ratio

n.P

roje

ct n

ot c

ompl

eted

.

4.4.Effectiveassessment

of in

terc

onne

ctio

n an

d

elec

tron

ic c

omm

unic

atio

n

faci

litie

s le

asin

g

agre

emen

ts.

4.4.1.Report

on a

naly

sis

and

proc

essi

ng o

f

inte

rcon

nect

ion

and

elec

tron

ic

com

mun

icat

ion

faci

litie

s le

asin

g

requ

ests

, agr

eem

ents

and

amen

dmen

ts.

Reports

Reviewagreementswithin

21 d

ays.

Targ

et o

f rev

iew

and

resp

onse

with

in

21 d

ays

not a

chie

ved.

4.5.Identifyessential

faci

litie

s an

d pr

ovid

e

fram

ewor

k fo

r ac

cess

to s

uch

faci

litie

s on

favo

urab

le te

rms.

4.5.1.Report

iden

tifyi

ng a

list

of

esse

ntia

l fac

ilitie

s

and

reco

mm

endi

ng

appr

opria

te

fram

ewor

k fo

r

faci

litat

ing

acce

ss to

such

faci

litie

s.

Reports

ReporttoCouncilon

appr

oach

to e

ssen

tial

faci

litie

s.

Pro

ject

com

plet

ed.

5. T

o re

duce

the

cost

of

doin

g bu

sine

ss in

Sou

th

Afri

ca b

y en

cour

agin

g

effe

ctiv

e co

mpe

titio

n

thro

ugh

incr

ease

d ac

cess

to in

frast

ruct

ure,

div

ersi

ty

of s

ervi

ce, c

ompe

titiv

e

pric

es a

nd g

reat

er c

hoic

e

for

cons

umer

s.

5.1.Regulationsto

faci

litat

e Lo

cal L

oop

Unb

undl

ing.

5.1.1.Reporto

nLocal

Loop

Unb

undl

ing

Regulations.

Reports,

regu

latio

ns

Reporto

nmarketd

efinition,

SHBandeffectivenessof

com

petit

ion.

Projectdeferredto201

0/11

financial

year

.

4

52

MA

RK

ET

S A

ND

CO

MP

ET

ITIO

N D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

2009

/10

fina

ncia

l yea

r

6.Ensurefair,transparent

and

non-

disc

rimin

ator

y

allo

catio

ns o

f num

bers

to

licen

sees

(com

petit

ion)

andprovidesufficient

num

berin

g ca

paci

ty

for

exis

ting

and

futu

re

num

berin

g de

man

ds

6.1.Ensurethat

num

berin

g ru

les,

num

berin

g co

nven

tions

and

stru

ctur

e of

the

plan

are

in p

lace

to a

llow

fair,

tran

spar

ent a

nd n

on

disc

rimin

ator

y al

loca

tions

of n

umbe

rs to

lice

nsee

s.

6.1.1.Revised

num

berin

g pl

an

regu

latio

ns in

term

s of

the

EC

A.

Reports,

wor

ksho

ps, p

ublic

cons

ulta

tion,

regu

latio

ns.

Pub

lish

revi

sed

Num

berin

g

PlanRegulationsinterm

s

of th

e E

CA

.

Fina

l dra

ft re

gula

tions

com

plet

ed fo

r

releasein201

0/11

financialyear.

6.2.ConductNum

ber

Aud

it in

line

with

the

Num

berin

g P

lan.

6.2.1.Auditrepo

rts

Aud

it re

port

sP

ublis

h A

udit

repo

rts

Ove

rall

proj

ect t

o be

inco

rpor

ated

in

the

2010

/201

1 N

umbe

r A

udit

Pro

ject

.

6.3.Toimprovethe

efficiency,transparency,

and

acce

ssib

ility

of

the

num

ber

data

base

.

Inco

rpor

ate

the

cent

ral

num

berin

g da

taba

se

withAuthority’swebsite.

Dev

elop

web

-bas

ed

appl

icat

ion

for

publ

ic

accessto

Authority’s

Cen

tral

Num

berin

g

data

base

.

6.3.1.Reporto

n

web

-acc

ess

of

exis

ting,

allo

cate

d an

d

avai

labl

e nu

mbe

ring

capa

city

.

-Reports

- N

umbe

ring

info

rmat

ion

publ

ishe

d on

web

site

.

Pub

lish

repo

rt o

n w

eb-

acce

ss o

f exi

stin

g,

allo

cate

d an

d av

aila

ble

num

berin

g ca

paci

ty.

Pro

gres

s re

port

sub

mitt

ed.

6.4.Maintenanceand

man

agem

ent o

f Cen

tral

Num

berin

g D

atab

ase.

6.4.1.Upd

ated

num

berin

g da

taba

se.

-Dat

abas

e re

port

sU

pdat

ed n

umbe

ring

data

base

.

Pro

gres

s re

port

sub

mitt

ed.

6.5.Evaluationof

Num

berin

g ap

plic

atio

ns.

6.5.1.A

llocationof

num

bers

to li

cens

ees.

Recom

mendation

repo

rts.

Allo

cate

num

bers

to

licen

sees

.

Pro

gres

s re

port

sub

mitt

ed.

53

Section 4M

AR

KE

TS

AN

D C

OM

PE

TIT

ION

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

2009

/10

fina

ncia

l yea

r

6.6.Processandmonitor

tarif

f adj

ustm

ents

6.6.1.Com

mon

data

base

for

the

publ

icat

ion

of re

tail

tarif

fs fo

r pu

blic

acce

ss.

Recom

mendation

repo

rts

Recom

mendationrepo

rts

Pro

gres

s re

port

sub

mitt

ed.

7.EncourageResearch

and

Dev

elop

men

t with

in

the

ICT

sect

or (S

ecto

r

Inte

lligen

ce P

roje

ct).

7.1.

Pro

vide

for

the

ongo

ing

anal

ysis

of t

rend

s

and

deve

lopm

ents

in

the

ICT

sect

or th

roug

h

the

mai

nten

ance

and

prov

isio

n of

dat

a, k

ey

indi

cato

rs, a

nd re

sear

ch.

7.1.1.Reporto

n

syst

em fo

r co

llatio

n

and

safe

keep

ing

of a

ll da

ta a

nd

info

rmat

ion

in a

cent

ral d

atab

ase

and

deve

lop

proc

edur

es

and

proc

esse

s fo

r th

e

diss

emin

atio

n of

key

indi

cato

rs, s

tatis

tics

and

tren

d re

port

s

(non-confidential)to

the

publ

ic.

Term

s of

Reference

docu

men

t.

Term

sofReference

docu

men

t.

Pro

ject

def

erre

d to

the

2010

/11

financialyearow

ingtoalackof

reso

urce

s.

8. T

o re

duce

the

cost

of

doin

g bu

sine

ss in

Sou

th

Afri

ca b

y en

cour

agin

g

effe

ctiv

e co

mpe

titio

n

thro

ugh

incr

ease

d ac

cess

to in

frast

ruct

ure,

div

ersi

ty

of s

ervi

ce, c

ompe

titiv

e

pric

es a

nd g

reat

er c

hoic

e

for

cons

umer

s.

8.1.Im

plem

entH

andset

SubsidyRegulations.

8.1.

1. P

rom

ulga

tion

ofHandsetSubsidy

Regulations.

Regulations

Fina

l reg

ulat

ions

Pro

ject

to b

e co

mpl

eted

in th

e ne

w

financialyear.

8.2.

Ens

ure

Car

rier

Pre

Sel

ectio

n.

8.2.

1. P

rom

ulga

tion

of

Car

rier

Pre

Sel

ectio

n

Regulations.

Regulations

publ

ishe

d.

Regulationspublished.

Regulationsfinalisedbutnot

publ

ishe

d.

54

MA

RK

ET

S A

ND

CO

MP

ET

ITIO

N D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

2009

/10

fina

ncia

l yea

r P

olic

y R

esea

rch

and

Dev

elo

pm

ent

Str

ateg

ic g

oal

: Li

ber

alis

atio

n o

f th

e IC

T s

ecto

rO

per

atio

nal g

oal

: In

tro

duc

e a

com

pre

hens

ive

com

pet

itio

n fr

amew

ork

1. T

o pr

omot

e

sust

aina

ble,

sta

ble,

dyna

mic

and

inno

vativ

e

com

petit

ion

in th

e

broa

dcas

ting

sect

or

to d

eliv

er h

igh

qual

ity

serv

ices

at c

ompe

titiv

e

pric

es

1.1.Reviewofregulations

on A

dver

tisin

g,

Info

mer

cial

s an

d

Spo

nsor

ship

.

1.1.1.Revised

Regulations

on A

dver

tisin

g,

Info

mer

cial

s an

d

Spo

nsor

ship

.

Regulations

Regulations

Pro

ject

com

plet

ed. T

he A

utho

rity

deci

ded

not t

o am

end/

repe

al th

e

curr

ent r

egul

atio

ns u

ntil

the

EC

Act

has

been

am

ende

d to

enh

ance

legi

slat

ive

clar

ity a

nd c

erta

inty

.

2. E

nsur

e co

mpe

titiv

e,

fair,

ope

n, tr

ansp

aren

t

and

non-

disc

rimin

ator

y

pric

ing

and

right

for

high

qual

ity in

depe

nden

tly

prod

uced

Sou

th A

frica

n

prog

ram

min

g to

pro

mot

e

com

petit

ion.

2.1.

Cod

es o

f

Pra

ctic

e G

uide

lines

on C

omm

issi

onin

g

of In

depe

nden

tly

Pro

duce

d S

outh

Afri

can

Pro

gram

min

g as

man

date

d by

Sec

tion

61(1)oftheECAfor

deal

ings

bet

wee

n th

e

broa

dcas

ters

and

inde

pend

ent p

rodu

cers

.

2.1.

1. C

odes

of

Pra

ctic

e/G

uide

lines

for

deal

ings

bet

wee

n

the

broa

dcas

ters

and

inde

pend

ent

prod

ucer

s.

Cod

es o

f Pra

ctic

eC

odes

of P

ract

ice

Pro

ject

com

plet

ed. F

inal

Fin

ding

s

documentandRegulationspublished.

3. E

nsur

e co

mpe

titiv

e,

fair,

ope

n, tr

ansp

aren

t

and

non-

disc

rimin

ator

y

pric

ing

and

right

for

broa

dcas

ting

spor

ts

prog

ram

min

g.

3.1.Reviewthecurrent

regu

latio

ns o

n S

port

s

BroadcastingRightsand

fulfiltheprovisionsof

Section60(1)and(2)of

the

EC

A.

3.1.1.Revised

Regulationson

Spo

rts

Bro

adca

stin

g

Rightsand

DisputeResolution

Mec

hani

sm.

Regulations

Regulations

ProjectCom

pleted.FinalReasons

Docum

entandRegulationspublished.

55

Section 4M

AR

KE

TS

AN

D C

OM

PE

TIT

ION

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

2009

/10

fina

ncia

l yea

r

4.Toreducethecostof

doin

g bu

sine

ss in

Sou

th

Afri

ca b

y en

cour

agin

g

and

prom

otin

g

effe

ctiv

e, s

usta

inab

le,

stab

le, d

ynam

ic a

nd

inno

vativ

e co

mpe

titio

n

in th

e el

ectr

onic

com

mun

icat

ions

and

broa

dcas

ting

sect

ors

thro

ugh

incr

ease

d ac

cess

to in

frast

ruct

ure,

div

ersi

ty

of s

ervi

ce, c

ompe

titiv

e

pric

es a

nd g

reat

er c

hoic

e

for

cons

umer

s.

4.1.RegulationsforDigital

Terr

estr

ial T

elev

isio

n

Bro

adca

stin

g.

4.1.1.Regulatory

Fram

ewor

k fo

r D

igita

l

Terr

estr

ial T

elev

isio

n

Bro

adca

stin

g

Mig

ratio

n.

Regulations

RegulatoryFram

ework

Projectcom

pleted.FinalReasons

documentandRegulations

Fram

ewor

k pu

blis

hed

5. T

o pr

omot

e

sust

aina

ble,

sta

ble,

dyna

mic

and

inno

vativ

e

com

petit

ion

in th

e

elec

tron

ic c

omm

unic

atio

n

and

broa

dcas

ting

sect

or

to d

eliv

er h

igh

qual

ity

serv

ices

at c

ompe

titiv

e

pric

es.

5.1.

Exa

min

e th

e

optio

ns to

faci

litat

e th

e

intr

oduc

tion

of a

regu

lato

ry

appr

oach

tow

ards

Vid

eo

On

Dem

and

(VO

D) a

nd

Inte

rnet

Pro

toco

l Tel

evis

ion

(IPTV

).

5.1.1.Regulatory

Fram

ewor

k ap

proa

ch

to V

OD

and

IPTV

.

Fram

ewor

k

Doc

umen

t

Fram

ewor

k do

cum

ent

Pub

lishe

d di

scus

sion

doc

umen

t.

The

proj

ect w

ill be

car

ried

over

to

thenextfinancialyear.Thepublic

hear

ings

wer

e po

stpo

ned

to 2

010/

11

beca

use

lega

l vet

ttin

g to

ok lo

nger

than

exp

ecte

d.

56

MA

RK

ET

S A

ND

CO

MP

ET

ITIO

N D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

2009

/10

fina

ncia

l yea

r

6.Toprom

ote

sust

aina

ble,

sta

ble,

dyna

mic

and

inno

vativ

e

com

petit

ion,

cho

ice

and

dive

rsity

in th

e el

ectr

onic

com

mun

icat

ions

and

broa

dcas

ting

and

post

al

sect

ors

to d

eliv

er h

igh

qual

ity s

ervi

ces

at

com

petit

ive

pric

es.

6.1.Reviewthecurrent

regu

latio

ns o

n ow

ners

hip

and

cont

rol o

f com

mer

cial

broa

dcas

ting

serv

ices

and

limita

tions

on

broa

dcas

ting

serv

ices

.

6.1.1.Policy

reco

mm

enda

tions

to th

e M

inis

try

of

Com

mun

icat

ions

on o

wne

rshi

p an

d

cont

rol o

f com

mer

cial

broa

dcas

ting

serv

ices

and

limita

tions

on b

road

cast

ing

serv

ices

leve

ls fo

r

the

amen

dmen

t

of th

e E

lect

roni

c

Com

mun

icat

ion

Act

.

Reporto

nPolicy

Recom

mendations

to th

e M

inis

ter

of

Com

mun

icat

ions

.

Reporto

nPolicy

Recom

mendations

to th

e M

inis

ter

of

Com

mun

icat

ions

.

PolicyRecom

mendationsto

the

Min

istr

y of

Com

mun

icat

ions

on

owne

rshi

p an

d co

ntro

l of c

omm

erci

al

broa

dcas

ting

serv

ices

not

sub

mitt

ed.

The

proj

ect i

s ov

erla

ppin

g to

the

nextfinancialyear.Thediscussion

docu

men

t was

pub

lishe

d la

ter

than

expe

cted

due

to in

corp

orat

ion

of n

ew m

anda

te to

dea

l with

tele

com

mun

icat

ions

and

BE

E is

sues

,

as o

ppos

ed to

the

orig

inal

pla

n of

deal

ing

only

with

bro

adca

stin

g is

sues

.

7. T

o pr

omot

e

sust

aina

ble,

sta

ble,

dyna

mic

and

inno

vativ

e co

mpe

titio

n

in th

e el

ectr

onic

com

mun

icat

ions

and

broa

dcas

ting

sec

tors

to d

eliv

er h

igh

qual

ity

serv

ices

at c

ompe

titiv

e

pric

es.

7.1.

Exa

min

e th

e op

tions

aris

ing

from

the

rele

ase

of s

pect

rum

affo

rded

by

the

digi

tal s

witc

hove

r

prog

ram

me

(from

the

Dig

ital D

ivid

end)

.

7.1.1.Regulatory

App

roac

h to

the

Dig

ital D

ivid

end.

Regulatory

App

roac

h

Doc

umen

t

RegulatoryApp

roach

Doc

umen

t

Dis

cuss

ion

docu

men

t dev

elop

ed.

FinalR

egulatoryFram

eworkapproach

documentnotfinalised.Theprojectis

overlapp

ingtothenextfinancialyear.

The

lega

l vet

ting

of th

e do

cum

ent t

ook

mor

e tim

e th

an e

xpec

ted.

57

Section 4M

AR

KE

TS

AN

D C

OM

PE

TIT

ION

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

2009

/10

fina

ncia

l yea

r

8. T

o pr

omot

e

com

petit

ion,

enc

oura

ge

inno

vatio

n, p

rote

ct a

nd

info

rm c

onsu

mer

s,

efficientlyand

effe

ctiv

ely

man

age

the

radi

o fre

quen

cy

spec

trum

whe

n

regu

latin

g th

e el

ectr

onic

com

mun

icat

ions

,

broa

dcas

ting

and

post

al

sect

ors.

8.1.

Intr

oduc

e th

e ba

sic

fram

ewor

k on

how

ICA

SA

will

cond

uct a

nd re

gula

rise

theuseofRegulatory

ImpactAnalysis(RIA).

8.1.1.Regulatory

App

roac

h to

regu

laris

e th

e us

e of

RegulatoryImpact

Analysis(RIA).

Regulatory

App

roac

h

docu

men

t

RegulatoryApp

roach

Doc

umen

t

Pro

ject

com

plet

ed. C

ounc

il ap

prov

ed

thefinalregulatoryapp

roachfor

impl

emen

tatio

n.

EN

GIN

EE

RIN

G A

ND

TE

CH

NO

LOG

Y D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(iutp

ut)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r S

trat

egic

go

al:

Lib

eral

isat

ion

of

the

ICT

sec

tor

Op

erat

iona

l go

al:

Issu

ing

of

tech

nolo

gy

neut

ral l

icen

ses

tim

eous

ly

1. T

o en

able

effe

ctiv

e an

d

efficientmanagem

ento

f

spec

trum

and

tech

nolo

gy

(Spe

ctru

m li

cens

ing

and

man

agem

ent a

nd

equi

pmen

t typ

e ap

prov

al

prog

ram

me)

.

1.1.

Impl

emen

tatio

n of

a ne

w s

pect

rum

fees

fram

ewor

k an

d sy

stem

.

1.1.

1. F

inal

Spe

ctru

m

FeesRegulations.

Num

ber

of

publ

icat

ions

.

Pub

licat

ion

of s

pect

rum

fees

fram

ewor

k.

A n

ew s

pect

rum

fees

fram

ewor

k

and

deve

lopm

ent o

f Spe

ctru

m F

ees

Regulationshavebeencom

pleted.

1.2.

Dev

elop

men

t of t

he

licen

sing

fram

ewor

k fo

r hig

h

demandbands(e.g.2.6GHz

and3.5G

Hzbands).

1.2.1Regulationsand

ITA

.

Num

ber

of

publ

icat

ions

.

Publicationoffinalfeesand

ITA

.

Fina

l reg

ulat

ions

and

ITA

hav

e be

en

com

plet

ed.

58

EN

GIN

EE

RIN

G A

ND

TE

CH

NO

LOG

Y D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(iutp

ut)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

1. T

o en

able

effe

ctiv

e an

d

efficientmanagem

ento

f

spec

trum

and

tech

nolo

gy

(spe

ctru

m li

cens

ing

and

man

agem

ent a

nd

equi

pmen

t typ

e ap

prov

al

prog

ram

me)

(con

tinue

d).

1.3.Routinespectrum

licen

sing

act

iviti

es (l

icen

sing

and

assi

gnm

ent).

1.3.

1. S

pect

rum

licen

ces.

Ave

rage

num

ber

of a

pplic

atio

ns

clos

ed p

er

mon

th p

er ty

pe;

turn

arou

nd ti

me

per

type

.

Aeronautical:2

50

appl

icat

ions

, 10

days

turn

arou

nd;

-Amateur:35applications,

10 tu

rnar

ound

;

-Fixed:20applications,1

2

weeks’turnaround;

-Landmob

ile:2

50

applications,8

weeks’

turn

arou

nd;

-Maritime:100

appl

icat

ions

, 5 d

ays;

-Radiodealer:100,5

days

;

-Satellite:5,1

2weeks

- B

road

cast

ing,

2 w

eeks

turn

arou

nd

Aeronautical:4

32app

lications,1

4days

turn

arou

nd;

-Amateur:114

app

lications,1

4

turn

arou

nd;

-Fixed:10applications,2

4weeks

turn

arou

nd;

-Landmob

ile:3

43app

lications,8

weeks’turnaround;

-Maritime:128

app

lications,2

weeks;

-Radiodealer:202

,2weeks;

-Satellite:6,2

4weeks

- B

road

cast

ing,

2 w

eeks

turn

arou

nd

1.4.Routineequipm

ent

type

app

rova

l act

iviti

es.

1.4.1.Typeapprovals.

Ave

rage

num

ber

of a

pplic

atio

ns

clos

ed p

er

mon

th p

er ty

pe;

turn

arou

nd ti

me

per

type

.

-RFequipm

ent:208

appl

icat

ions

, 2 w

eeks

turn

arou

nd;

-TLTE

:83applications,2

wee

ks tu

rnar

ound

;

-SWS:4

1applications,2

wee

ks tu

rnar

ound

;

-LM

O:8

app

lications,2

wee

ks tu

rnar

ound

;

-Supplierregistration:4

appl

icat

ions

, 2 w

eeks

turn

arou

nd

-RFequipm

ent:43

2applications,2

wee

ks tu

rnar

ound

;

-TLTE

:23applications,2

weeks

turn

arou

nd;

-SWS:6

app

lications,2weeks

turn

arou

nd;

-LM

O:1

1applications,2

weeks

turn

arou

nd;

-Supplierregistration:0app

lications.

59

Section 4E

NG

INE

ER

ING

AN

D T

EC

HN

OLO

GY

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(iutp

ut)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

2. T

o ca

ter

for

new

deve

lopm

ents

in

tech

nolo

gy a

nd e

nsur

e

efficientuseofspectrum

by c

ompr

ehen

sive

frequ

ency

pla

nnin

g

(Fre

quen

cy p

lann

ing)

.

2.1.

Pub

licat

ion

of S

ATFA

and

frequ

ency

spe

ctru

m

char

t.

2.1.

1 S

AFT

A a

nd

Freq

uenc

y S

pect

rum

Cha

rt.

Num

ber

of

publ

icat

ions

.

ThematerialR

adio

frequ

ency

pla

n pu

blis

hed.

The

natio

nal r

adio

freq

uenc

y pl

an w

as

appr

oved

by

the

Min

iste

r an

d pu

blis

hed

in N

ovem

ber

2009

.

2.2.

Dev

elop

men

t of t

he

broa

dcas

ting

spec

trum

plan

and

bro

adca

stin

g

spec

trum

ass

ignm

ent a

s

part

of d

igita

l mig

ratio

n.

2.2.

1. B

road

cast

ing

spec

trum

pla

n.

Num

ber

of

publ

icat

ions

.

One

.B

rodc

astin

g fre

quen

cy p

lan

was

publ

ishe

d in

Nov

embe

r 20

09.

2.3.

Inte

grat

ion

of th

e

mon

itorin

g W

AN

.

2.3.

1. C

omm

issi

onin

g

all s

ites.

Num

ber

of

publ

icat

ions

.

Com

mis

sion

ing

repo

rt.

All

site

s co

mm

issi

oned

and

repo

rt

com

pile

d.

2.4.Spectrumaudit–

Pha

se 1

.

2.4.1.Spectrum

Aud

it an

d M

onito

ring

Reports.A

uditingof

identifiedbands.

Num

ber

of

publ

icat

ions

.

Reportsonbandsaudited.

The

spec

trum

aud

it ha

s be

en d

one

for

450-47

0MHzand79

0-86

2MHzand

repo

rt c

ompl

eted

.

2.5.

Dev

elop

men

t of a

frequ

ency

mig

ratio

n pl

an fo

r

harm

onis

atio

n.

2.5.

1. P

relim

inar

y

frequ

ency

mig

ratio

n

plan

.

Num

ber

of

publ

icat

ions

.

Pre

limin

ary

frequ

ency

mig

ratio

n pl

an.

The

plan

was

not

com

plet

ed d

ue to

lack

of c

apac

ity.

60

EN

GIN

EE

RIN

G A

ND

TE

CH

NO

LOG

Y D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(iutp

ut)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

3. T

o id

entif

y po

licy

impe

rativ

es to

adv

ise

rele

vant

sta

keho

lder

s

and

to id

entif

y an

d

deve

lop

regu

latio

ns

and

stan

dard

s to

stre

ngth

en th

e re

gula

tory

envi

ronm

ent a

nd

enco

urag

e an

d su

ppor

t

man

aged

intr

oduc

tion

of

new

tech

nolo

gies

. (P

olic

y

revi

ew, r

ule

mak

ing

and

stan

dard

isat

ion)

..

3.1Reviewofequipment

type

app

rova

l fra

mew

ork

to s

impl

ify a

nd b

e al

igne

d

with

tim

e.

3.1.1R

evisedtype

appr

oval

fram

ewor

k.

Num

ber

of

publ

icat

ions

.

Pub

licat

ion

type

app

rova

l of

the

new

fram

ewor

k.

The

fram

ewor

k w

as n

ot c

ompl

eted

as

plan

ned

due

to la

ck o

f cap

acity

.

3.2.

Dev

elop

men

t of

theTC

80officiallistof

stan

dard

s.

3.2.1.Officiallistof

stan

dard

s.

Num

ber

of

publ

icat

ions

.

Upd

atesto

theofficiallisto

f

Sta

ndar

ds.

Officiallistofstandardsregulations

publ

ishe

d du

e to

lack

of c

apac

ity.

3.3.

Dev

elop

men

t of a

conc

ise

spec

trum

lice

nsin

g

regi

me

alig

ned

with

the

Act

.

3.3.

1. S

pect

rum

licen

sing

regi

me

prop

osal

.

Num

ber

of

publ

icat

ions

.

One

Spe

ctru

m li

cens

ing

regi

me

prop

osal

not

com

plet

ed.

3.4.Develop

ment

of a

ssig

nmen

t and

coor

dina

tion

polic

ies

and

proc

edur

es –

e.g

.

mic

row

ave,

trun

king

syst

ems,

ala

rms,

etc

.

3.4.1.Coordination

“pol

icie

s an

d

proc

edur

es.

Num

ber

of

publ

icat

ions

.

One

Coo

rdin

atio

n po

licie

s an

d pr

oced

ures

regu

latio

ns n

ot p

ublis

hed

due

to la

ck o

f

capa

city

.

3.5.Reviewofradio

regu

latio

ns –

pha

se 1

.

3.5.

1. D

raft

regu

latio

ns.

Num

ber

of

publ

icat

ions

.

One

Dra

ft re

gula

tions

hav

e be

en c

ompl

eted

and

awai

t pub

licat

ion.

61

Section 4E

NG

INE

ER

ING

AN

D T

EC

HN

OLO

GY

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(iutp

ut)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

4.Toenable

managem

ento

fefficient

man

agem

ent o

f spe

cial

even

t (S

peci

al e

vent

s).

4.1.Add

ressingspecial

requ

irem

ents

for

spec

ial

even

ts a

ccor

ding

to a

gree

d

framew

ork:

- E

lect

ions

- P

resi

dent

ial i

naug

urat

ion

- C

onfe

dera

tion

Cup

- 2

010

Wor

ld C

up

- IC

C 2

010

- D

iplo

mat

ic v

isits

4.1.1.FIFA2010:

Issu

ing

of s

pect

rum

licen

ces

for

2010

Wor

ld C

up,

inte

rfere

nce

reso

lutio

n, s

pect

rum

mon

itorin

g,

Equ

ipm

ent t

ype

appr

oval

s, s

peci

al

labe

ls

for

equi

pmen

t.

Pla

n fo

r 20

10

Wor

ld C

up a

nd

exec

utio

n.

Pla

n fo

r 20

10 W

orld

Cup

and

exec

utio

n.

Pla

n w

as d

evel

oped

and

exe

cute

d

for

spec

trum

lice

nsin

g, e

quip

men

t

auth

oris

atio

ns, m

onito

ring

and

inte

rfere

nce

cont

rol.

Str

ateg

ic g

oal

: C

reat

e re

gul

ato

ry c

erta

inty

Op

erat

iona

l go

al:

Est

ablis

h re

sear

ch a

nd a

dvi

sory

pro

gra

mm

es

5. T

o en

able

deve

lopm

ent o

f age

ndas

/

fore

cast

on

spec

trum

and

tech

nolo

gy

issu

es to

info

rm p

olic

y

deve

lopm

ent a

nd r

ule

making(Researchand

advi

sory

pro

gram

mes

).

5.1.

Eng

agem

ent o

f ter

tiary

and

rese

arch

inst

itutio

ns.

5.1.1.Research

outp

uts

and

sem

inar

s

- jo

urna

l pap

ers,

conf

eren

ce p

aper

s

and

pres

enta

tions

.

Pap

ers

and

pres

enta

tion.

Pro

duce

one

pap

er a

nd

two

pres

enta

tions

.

Eng

agem

ents

with

hig

her

lear

ning

Inst

itutio

ns h

ave

take

n pl

ace

and

prop

osal

s re

ceiv

ed. 2

Pre

sent

atio

ns

wer

e do

ne to

ext

erna

l sta

keho

lder

s.

5.2.

Par

ticip

atio

n in

tech

nica

l for

ums.

5.2.

1. Q

uart

erly

repo

rts

Reports

Four

repo

rts

ParticipatedinvariousITU-Rstudy

grou

ps/

wor

king

par

ties

and

SA

BS

tech

nica

l com

mitt

ees.

Als

o pr

esen

ted

tech

nica

l pap

ers

to v

ario

us fo

rum

s.

62

EN

GIN

EE

RIN

G A

ND

TE

CH

NO

LOG

Y D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(iutp

ut)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

6.Toenablemanaged

supp

ort a

nd g

ivin

g

of te

chni

cal a

dvic

e

to o

ther

div

isio

ns a

nd

stak

ehol

ders

(Tec

hnic

al a

dvic

e

and

supp

ort t

o ot

her

divi

sion

s).

6.1.Technical

mea

sure

men

ts to

sup

port

cons

umer

pro

tect

ion

prog

ram

mes

– e

.g.

“con

nect

ion

failu

re”

rate

s

and

drop

ped

calls

in m

obile

serv

ices

.

6.1.1.Measurement

repo

rts

Qua

rter

ly

repo

rts

Four

repo

rts

Two

Qua

lity

of s

ervi

ce (Q

oS) t

ests

wer

e

conductedintheJH

Barea.R

eport

com

pile

d.

6.2.Add

ressingtasksfor

proj

ect i

n ot

her

divi

sion

s

and

to a

ddre

ss re

ques

ts

from

div

isio

ns a

nd o

ther

stak

ehol

ders

. e.g

.

– In

terc

onne

ctio

n

– Lo

cal l

oop

unbu

ndlin

g.

6.2.1.Quarterly

repo

rts

Qua

rter

ly

repo

rts

Four

repo

rts

Recordofparticipationofstaffin

com

mitt

ees

com

pile

d qu

arte

rly.

Str

ateg

ic g

oal

: E

xecu

ting

ser

vice

del

iver

y ef

fici

entl

y an

d e

ffec

tive

ly

Op

erat

iona

l go

al:

Imp

lem

enta

tio

n o

f sy

stem

s fo

r en

d-t

o-e

nd p

roce

sses

and

kno

wle

dg

e m

anag

emen

t

7. T

o es

tabl

ish

and

deve

lop

tool

s an

d

know

ledg

e ba

se fo

r

inte

rnal

pro

cess

es,

build

ing

capa

bilit

y,

mar

ketin

g th

e di

visi

on

and

shar

ing

of

know

ledg

e.

7.1.

Impl

emen

tatio

n of

a

spec

trum

man

agem

ent

syst

em.

(Exc

lude

s pr

ocur

emen

t of

the

softw

are)

.

7.1.

1. N

ew s

pect

rum

man

agem

ent s

yste

m

Com

plet

ed

impl

emen

tatio

n

Com

plet

ed im

plem

enta

tion.

TheBusinessProcessRe-engineering

(BPR)exercisewascom

pleted.T

henew

Spe

ctru

m m

anag

emen

t sys

tem

has

not b

een

purc

hase

d ye

t due

to la

ck o

f

fund

ing.

7.2.

Sta

keho

lder

upd

ate

and

info

rmat

ion

syst

em.

7.2.

1. T

imeo

us

upda

tes

Qua

rter

ly

repo

rts

Four

repo

rts

Spe

ctru

m u

sage

and

ava

ilabi

lity,

spec

trum

and

type

app

rova

l lic

ence

s

issu

ed a

nd s

pare

com

mun

ity

broa

dcas

ting

frequ

enci

es c

ompi

led

and

upda

ted

quar

terly

.

63

Section 4C

ON

SU

ME

R A

FFA

IRS

DIV

ISIO

N

Str

ateg

ic o

bje

cti

veK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(ou

tpu

t)

Un

it o

f

mea

sure

men

t

Targ

et 2

009

/10

Ove

rall

pro

gre

ss d

uri

ng

th

e

2009

/10

fin

anci

al y

ear

Str

ateg

ic g

oal

: Li

ber

alis

atio

n o

f th

e IC

T s

ecto

rO

per

atio

nal g

oal

: To

pro

mo

te t

he in

tere

sts

of

cons

umer

s

1. T

o re

ceiv

e an

d

man

age

the

reso

lutio

n o

f

com

plai

nts.

1.1.

To

deve

lop

a

Con

sum

er C

ompl

aint

s

Man

ual.

1.1.

1. C

onsu

mer

Com

plai

nts

Man

ual.

Num

ber

of

Com

plai

nts

Man

uals

prod

uced

.

Pro

duce

and

dis

trib

ute

30 0

00 c

opie

s of

Com

plai

nts

Man

ual.

27 7

00 c

opie

s of

Con

sum

er

Com

plai

nts

Man

uals

prin

ted

and

distributedattheMob

ileHelpDesk

visi

ts in

all

prov

ince

s.

1.2.

Wor

ksho

p

stak

ehol

ders

on

Con

sum

er

Com

plai

nts

Man

ual.

1.2.1Reportson

wor

ksho

ps c

ondu

cted

.

Num

ber

of

wor

ksho

ps

cond

ucte

d.

20 W

orks

hops

per

annum,i.e.five

wor

ksho

ps p

er q

uart

er.

21 w

orks

hops

wer

e he

ld.

1.3.Receive,recordand

ackn

owle

dge

com

plai

nts

within48hours.

1.3.

1. F

iled

reco

rds

on

com

plai

nts.

Num

ber

of

ackn

owle

dgem

ent

lett

ers

to

com

plai

nant

s.

2 00

0 ac

know

ledg

emen

t

lett

ers

per

annu

m.

3 39

0 co

mpl

aint

s w

ere

rece

ived

,

recorded,filedandacknow

ledg

ed

for

the

year

.

1.3.

2. C

ompl

aint

s re

ceiv

ed,

recordedandfiled.

Num

ber

of

complaintsfiles

open

ed.

2 00

0 co

mpl

aint

s

per

annu

m, i

.e. 5

00

com

plai

nts

per

quar

ter.

3 39

0 co

mpl

aint

s w

ere

rece

ived

,

recorded,filedandacknow

ledg

ed

for

the

year

.

1.4.Resolutionof

com

plai

nts

with

in 3

0

wor

king

day

s.

1.4.1.6

1%ofcom

plaints

resolvedwithinthefinancial

year

.

Resolved

com

plai

nts.

2 00

0 co

mpl

aint

s

perannum,i.e.6

25

com

plai

nts

par

quar

ter.

62%(210

2/33

90)ofthecom

plaints

wer

e re

solv

ed in

the

year

und

er

revi

ew.

2. T

o im

prov

e th

e

acce

ssib

ility

ofIC

ASA’s

com

plai

nts

redr

ess

mec

hani

sms

to ru

ral

and

unde

rser

vice

d

area

s.

2.1.Reachoutto

rural

and

unde

rser

vice

d

com

mun

ities

.

2.1.

1. M

obile

com

plai

nts

help

desk

s ho

sted

at

stra

tegi

c pl

aces

per

regi

on p

er q

uart

er.

Num

ber

of m

obile

com

plai

nts

help

desk

s ho

sted

.

24mob

ilecom

plaints

help

desk

s ho

sted

per

annu

m i.

e. s

ix p

er q

uart

er.

21 m

obile

hel

pdes

ks w

ere

host

ed.

64

CO

NS

UM

ER

AF

FAIR

S D

IVIS

ION

Str

ateg

ic o

bje

cti

veK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(ou

tpu

t)

Un

it o

f

mea

sure

men

t

Targ

et 2

009

/10

Ove

rall

pro

gre

ss d

uri

ng

th

e

2009

/10

fin

anci

al y

ear

3. T

o pr

otec

t

cons

umer

s

thro

ugh

rese

arch

and

mon

itorin

g

com

plia

nce

with

con

sum

er

prot

ectio

n

regu

latio

ns.

3.1.

Con

duct

rese

arch

on

acce

ss to

ser

vice

s by

peop

le w

ith d

isab

ilitie

s.

3.1.1.Researchrepo

rt.

Pro

duce

d re

sear

ch

repo

rt.

Pro

duce

rese

arch

repo

rt

by th

ird q

uart

er.

Thefirsthalfofthestudywas

com

plet

ed in

the

last

qua

rter

of

2009

/10

and

the

last

hal

f will

be

completedinthefirstquarterof

2010

/11.

3.2.

Con

duct

rese

arch

on

cons

umer

issu

es fo

r

Con

sum

er A

dvis

ory

Pan

el (C

AP

).

3.2.1.R

esearchrepo

rts

(Thr

ee).

Pro

duce

d re

sear

ch

repo

rts.

Pro

duce

rese

arch

repo

rts

by 1

st, 2

nd a

nd 3

rd

quar

ter

as d

eter

min

ed b

y

CA

P to

info

rm it

s ad

viso

ry

role

.

The

stud

ies

coul

d no

t be

com

plet

ed fo

r C

AP

as

the

pane

l

mem

bers

res

igne

d in

qua

rter

two.

3.3.

Con

duct

aud

it st

udy

on s

ervi

ces

prov

ided

by o

pera

tors

.

3.3.1.Researchrepo

rt.

Pro

duce

d re

sear

ch

repo

rt.

Pro

duce

rese

arch

repo

rt

by e

nd o

f Fou

rth

quar

ter.

Thefirsthalfofthestudywasdone

in th

e la

st q

uart

er o

f 200

9/10

and

the

last

hal

f will

be c

ompl

eted

in

thefirstquarterof201

0/11

.

3.4.Monitorcompliance

with

con

sum

er

prot

ectio

n re

gula

tions

.

3.4.1.Com

pliancerepo

rts

(Fou

r).

Com

plia

nce

repo

rt

prod

uced

.

Four

Com

plia

nce

repo

rts

per

annu

m i.

e. o

ne

Com

plia

nce

repo

rt p

er

quar

ter.

Two

mon

itorin

g vi

sits

wer

e

cond

ucte

d du

ring

the

year

und

er

revi

ew.

4.Toprovidepublic

educ

atio

n an

d

awar

enes

s.

4.1.Conductconsumer

awar

enes

s w

orks

hops

.

4.1.1.W

orkshopsper

annum(747).

Num

ber

of

wor

ksho

ps

cond

ucte

d pe

r

quar

ter.

747workshopsper

annu

m.

496workshopsweredo

nein

the

year

. Fo

ur p

ublic

edu

catio

n

and

awar

enes

s st

rate

gies

wer

e

deve

lope

d fo

r ea

ch q

uart

er

and

prov

ided

to th

e re

gion

s fo

r

impl

emen

tatio

n.

4.2.Plan,coordinateand

ensu

re im

plem

enta

tion

of

NationalC

onsumerRights

Roadshows.

4.2.1.Roadshows

succ

essf

ully

hel

d in

all

prov

ince

s.

1ConsumerRights

Roadshowper

prov

ince

.

NineConsumerRights

Roadshowsconductedin

four

th q

uart

er.

The

stra

tegy

for

impl

emen

ting

theConsumerRightsRoadshow

on a

sm

all s

cale

in th

e fo

rm o

f

wor

ksho

ps w

as p

rovi

ded

to th

e

regi

ons.

65

Section 4C

ON

SU

ME

R A

FFA

IRS

DIV

ISIO

N

Str

ateg

ic o

bje

cti

veK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(ou

tpu

t)

Un

it o

f

mea

sure

men

t

Targ

et 2

009

/10

Ove

rall

pro

gre

ss d

uri

ng

th

e

2009

/10

fin

anci

al y

ear

4.Toprovidepublic

educ

atio

n an

d

awar

enes

s

(con

tinue

d).

4.3.Plan,coordinateand

ensu

re p

rocu

rem

ent o

f

cons

umer

aw

aren

ess

rais

ing

mat

eria

l by

Com

mun

icat

ions

Dep

artm

ent.

4.3.1.MaterialonICT

serv

ices

ava

ilabl

e to

cons

umer

s.

Pro

duct

ion

of m

ater

ial

on c

onsu

mer

awar

enes

s.

Pam

phle

ts, T

-shi

rts,

cap

s,

bann

ers,

bag

s pr

oduc

ed

in:firstq

uarterforWorld

Tele

com

mun

icat

ions

Day

and

You

th D

ay th

ird

quar

ter

for

Wor

ld P

osta

l

Day

and

Dis

abilit

y D

ay

four

th q

uart

er fo

r W

orld

Con

sum

er r

ight

s D

ay.

Pro

mot

iona

l mat

eria

l was

deve

lope

d, d

ispa

tche

d an

d

dist

ribut

ed a

t the

nat

iona

l

cam

paig

ns.

4.4.Plan,co-ordinate

and

ensu

re a

dver

tisin

g on

cons

umer

pro

tect

ion

in th

e

med

ia b

y C

omm

unic

atio

ns

Dep

artm

ent.

4.4.1.OnePrintadvert

on C

ompl

aint

s se

rvic

es

offe

red

by IC

AS

A

One

Prin

t adv

ert o

n

Inte

rnat

iona

l Day

of

peop

le w

ith D

isab

ilitie

s.

One

Prin

t adv

ert

on C

onsu

mer

RightsRoadshows.

Radioadvertisingon

ConsumerRights

Roadshows.

Pla

ced

adve

rtis

emen

ts in

the

med

ia.

Pla

cem

ent o

f

adve

rtis

emen

ts in

City

Pre

ss, D

aily

Sun

,

Sow

etan

and

SA

BC

RegionalR

adios:first

quar

ter

for

Wor

ld

Tele

com

mun

icat

ions

Day

and

You

th D

ay th

ird

quar

ter

for

Wor

ld P

osta

l

Day

& D

isab

ility

Day

four

th q

uart

er fo

r W

orld

Con

sum

er r

ight

s D

ay.

Adv

ertis

emen

ts fo

r na

tiona

l

cam

paig

ns w

ere

plac

ed in

the

targ

eted

prin

t med

ia.

5. T

o es

tabl

ish,

laun

ch a

nd

mon

itor

Con

sum

er

Representative

Forums(CRF).

5.1.

Est

ablis

h an

d la

unch

CRFsintheremainingsix

prov

ince

s.

5.1.1.CRFslaunchedin

six

prov

ince

s.

Reportsonthe

establishedCRFs.

EstablishedsixCRFsin

the

rem

aini

ng p

rovi

nces

.

i.e..

Gau

teng

, W.C

ape,

E.

Cap

e, N

.Cap

e, F

ree

Sta

te

& N

. Wes

t.

OnlyfourCRFswereestablished

durin

g th

e ye

ar u

nder

revi

ew.

6.ToCoordinateCAP

activ

ities

.

6.1.Co-ordinateCAP

mee

ting

for

each

qua

rter

.

6.1.1Fourxmeetingsper

annu

m .i

.e. O

ne m

eetin

g

per

quar

ter.

One

mee

ting

per

quar

ter.

Four

mee

tings

per

ann

um

.i.e.

One

mee

ting

per

quar

ter.

Cou

ncil

has

appr

oved

the

revi

ew

ofCAPRegulations.C

ouncil

Com

mitt

ee h

as b

een

cons

titut

ed

for

appr

oval

by

Cou

ncil.

66

CO

NS

UM

ER

AF

FAIR

S D

IVIS

ION

Str

ateg

ic o

bje

cti

veK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(ou

tpu

t)

Un

it o

f

mea

sure

men

t

Targ

et 2

009

/10

Ove

rall

pro

gre

ss d

uri

ng

th

e

2009

/10

fin

anci

al y

ear

7. T

o es

tabl

ish

and

mai

ntai

n pa

rtne

rshi

p

with

ope

rato

rs o

n

cons

umer

pro

tect

ion

mat

ters

.

7.1.

Inte

ract

ion

with

oper

ator

s on

mat

ters

affe

ctin

g co

nsum

ers.

7.1.

1 M

eetin

gs h

eld

in

resp

ect o

f rel

atio

nshi

p

build

ing

in th

e s

econ

d

quar

ter.

Vis

it op

erat

ors

in th

e th

ird a

nd fo

urth

quar

ters

.

Qua

rter

ly m

eetin

g

with

ope

rato

rs.

Firstq

uarter:M

apout

the

CS

Ts,

iden

tify

tele

com

mun

icat

ions

stak

ehol

ders

and

cre

ate

data

base

; se

cond

quarter:Meetingwith

DoC

, US

AA

SA

; thi

rd

quarter:Visittooperators.

Mee

tings

with

ope

rato

rs w

ere

held

as p

lann

ed.

8. T

o es

tabl

ish

and

mai

ntai

n pa

rtne

rshi

ps

with

org

anis

atio

ns th

at

prom

ote

peop

le w

ith

disa

bilit

ies.

8.1.

Inte

ract

ion

with

orga

nisa

tions

that

pro

mot

e

peop

le w

ith d

isab

ilitie

s

on m

atte

rs a

ffect

ing

cons

umer

s.

8.1.

1 C

ompl

ianc

e re

port

on th

e C

ode

on P

eopl

e

with

Dis

abilit

ies.

Qua

rter

ly m

eetin

gs

with

org

anis

atio

ns

that

pro

mot

e pe

ople

with

dis

abilit

ies.

Four

mee

tings

.Com

plianceReporto

nthecodeof

Peo

ple

with

Dis

abilit

ies

is a

vaila

ble.

9. T

o cr

eate

regu

lato

ry

cert

aint

y.

9.1.

Dev

elop

End

-Use

r an

d

Sub

scrib

er S

ervi

ce C

hart

er.

9.1.

1. P

ublis

hed

regu

latio

ns.

Pub

lishe

d

regu

latio

ns.

Pub

lishe

d re

gula

tions

.TheRegulationswerepublished.

9.2.Develop

E-Rate

Regulations.

9.2.

1.P

ublis

hed

regu

latio

ns.

Pub

lishe

d

regu

latio

ns.

Pub

lishe

d re

gula

tions

.DraftRegulationsandtheReasons

Doc

umen

t wer

e co

mpl

eted

.

9.3.

Dev

elop

Inte

grity

of

MailR

egulations.

9.3.

1. P

ublis

hed

regu

latio

ns.

Pub

lishe

d

regu

latio

ns.

Pub

lishe

d re

gula

tions

.TheRegulationswerepublished.

67

Section 4LE

GA

L D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r S

trat

egic

go

al:

Saf

egua

rd IC

AS

A’s

leg

al in

tere

sts

Op

erat

iona

l go

al:

Kee

p p

ublic

and

sta

keho

lder

s in

form

ed a

bo

ut I

CA

SA

’s r

egul

ato

ry a

ctiv

itie

s

1.StrengtheningIC

ASA’s

regu

lato

ry a

ctiv

ities

.

1.1.

Exa

min

e th

e E

CA

,

ICA

SA

Act

and

the

Pos

tal

Ser

vice

s A

ct.

1.1.1.Reporto

n

the

eval

uatio

n an

d

asse

ssm

ent o

f the

Act

s,

thei

r ef

fect

iven

ess

and

reco

mm

enda

tions

on

prop

osed

am

endm

ents

to th

e M

inis

ter

of

Com

mun

icat

ions

and

Par

liam

ent.

Report

Report

Com

mitt

ee c

hair

subm

itted

repo

rts

on th

e E

CA

, Pos

t Ban

k B

ill, P

osta

l

Ser

vice

s B

ill an

d th

e B

road

cast

ing

Act

to C

ounc

il.

1.2.

Exa

min

e IC

AS

A

fund

ing

mod

el in

comparisonto

NERSA,

FSB

and

Pen

sion

Fun

d

Adj

udic

ator

.

1.2.1.Reportand

reco

mm

enda

tion

on IC

AS

A

fund

ing

mod

el.

Report

Report

Pro

ject

On-

goin

g

Str

ateg

ic g

oal

: S

afeg

uard

ICA

SA

’s le

gal

inte

rest

s O

per

atio

nal g

oal

: M

inim

ise

Liti

gat

ion

agai

nst

ICA

SA

2. L

itiga

tion

and

gene

ral

lega

l sup

port

2.1.

Saf

egua

rd IC

AS

A

inte

rest

in li

tigat

ion

and

gene

ral l

egal

affa

irs.

2.1.

1. S

tatu

s re

port

on

ICA

SA

liti

gatio

n m

atte

rs.

Litig

atio

n m

atte

rsA

s m

atte

rs a

rise

22litigationmatters,threefinalised.two

non-

regu

lato

ry li

tigat

ion

mat

ters

, tw

o

finalised.

2.2.Contracts:d

rafting

and

vett

ing.

2.2.

1. S

tatu

s re

port

on

cont

ract

s dr

afte

d/ve

tted

.

Con

trac

tsA

s m

atte

rs a

rise

15 c

ontr

acts

dra

fted

and/

or

revi

ewed

.

2.3.

Leg

al o

pini

ons.

2.3.

1. S

tatu

s re

port

on

lega

l

opin

ions

and

doc

umen

ts

draf

ted/

vet

ted.

Lega

l opi

nion

sA

s m

atte

rs a

rise

Thre

e in

tern

al o

pini

ons.

2.4.Docum

ents:d

rafting

and

vett

ing.

2.4.1.R

eporto

nsteps

takentom

itigateIC

ASA’s

lega

l ris

ks.

Reporto

nlegal

risks

As

mat

ters

aris

eN

one.

68

LEG

AL

DIV

ISIO

N

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

2. L

itiga

tion

and

gene

ral

lega

l sup

port

(con

tinue

d).

2.5.

Lab

our

law

Labo

ur la

wA

s m

atte

rs a

rise

sixlabourmatters,threematterfinalised

at th

e C

CM

A w

ith o

ne o

n re

view

by

empl

oyer

. thr

ee n

ew m

atte

rs p

endi

ng.

2.6.Com

merciallaw

Com

mer

cial

law

As

mat

ters

aris

e

2.7.

Gen

eral

lega

l sup

port

Gen

eral

sup

port

As

mat

ters

aris

eVa

rious

Str

ateg

ic g

oal

: S

afeg

uard

ICA

SA

’s le

gal

inte

rest

s O

per

atio

nal g

oal

: th

at IC

AS

A’s

reg

ulat

ions

co

mp

lies

wit

h th

e la

ws

of

the

Rep

ublic

and

mee

t th

e m

inim

um d

raft

ing

sta

ndar

d

3.RegulatorySuppo

rt&

Legi

slat

ive

Dra

fting

3.1.

Ens

ure

that

ICA

SA

disc

harg

es it

s re

gula

tory

man

date

with

in th

e la

w.

3.1.1.Reporto

nregulations

vett

ed a

nd/o

r re

view

ed

for

Cou

ncil

and

Cou

ncil

Com

mitt

ees

cons

ider

atio

n.

Reporto

nA

s m

atte

rs a

rise

34docum

entsincludingregulations,

discussiondocs,reasonsdo

cs,M

oU’s

and

guid

elin

es c

ame

for

vett

ing,

23

finalisedand11outstanding.

3.2.

Vet

and

revi

ew IC

AS

A

regu

lato

ry p

roce

sses

,

docu

men

ts, d

iscu

ssio

n

pape

rs, r

egul

atio

ns e

tc.

3.2.1.Reporto

nstepstaken

tomitigateIC

ASA’slegal

risks

.

Reporto

nA

s m

atte

rs a

rise

34docum

entsincludingregulations,

discussiondocs,reasonsdo

cs,M

oU’s

and

guid

elin

es c

ame

for

vett

ing,

23

finalisedand11outstanding.

3.3.

Leg

al a

dvic

e to

regu

lato

ry d

ivis

ions

and

proj

ects

.

3.3.

1. L

egal

opi

nion

s an

d

anal

ysis

.

Lega

l opi

nion

sA

s m

atte

rs a

rise

Received16

instructionsforlegal

opinions,1

4werefinalisedand2are

still

in p

rogr

ess.

3.4.Reviewandadviceon

legi

slat

ive

mat

ters

affe

ctin

g

ICA

SA

.

3.4.1.Reportandadvice

on le

gisl

ativ

e tr

ends

and

form

ulat

ion

on IC

AS

A

posi

tions

.

Reporto

n

legi

slat

ive

mat

ters

As

mat

ters

aris

e34

docum

entsincludingregulations,

discussiondocs,reasonsdo

cs,M

oU’s

and

guid

elin

es c

ame

for

vett

ing,

23

finalisedand11outstanding.

3.5.

Adv

ice

ICA

SA

on

its

regi

onal

and

inte

rnat

iona

l

oblig

atio

ns.

3.5.

1. D

raft,

revi

ew o

r

adviceonMOUs,IC

ASA’s

inte

rnat

iona

l obl

igat

ions

.

Reporto

n

inte

rnat

iona

l

oblig

atio

ns

As

mat

ters

aris

eIC

AS

A/IN

CM

MoU

3.6.Capacitybuilding.

3.6.1.Trainingmanualon

the

EC

A, P

osta

l Ser

vice

Act

and

ICA

SA

Act

.

Trai

ning

man

ual

As

mat

ters

aris

eM

anua

l def

erre

d un

til th

e va

rious

Act

s

are

amen

ded.

3.6.2.Trainingondrafting.

Trai

ning

day

sA

s m

atte

rs a

rise

Cou

ld n

ot tr

ain

all d

ivis

ions

.

69

Section 4LE

GA

L D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r S

trat

egic

go

al:

Co

mp

lain

ts a

nd C

om

plia

nce

Co

mm

itte

eO

per

atio

nal g

oal

: In

vest

igat

e an

d a

dju

dic

ate

dis

put

es a

nd c

om

pla

ints

4.Investigateand

adju

dica

te c

ompl

aint

s

4.1.Adjudicatedisputes

and

com

plai

nts

from

licen

sees

and

con

sum

ers.

4.1.1.Timeousresolutionof

disp

utes

and

com

plai

nts

and

reco

mm

enda

tions

to IC

AS

A

on a

ppro

pria

te a

ctio

n/

sanc

tion.

Reports

As

mat

ters

aris

eTh

ree

mat

ters

pen

ding

.

4.2.A

djudicate

inte

rcon

nect

ion

and

faci

litie

s le

asin

g di

sput

es

from

lice

nsee

s.

4.2.1.Timeousresolutionof

inte

rcon

nect

ion

and

faci

litie

s

leas

ing

disp

utes

.

Reports

As

mat

ters

aris

etw

o In

terc

onne

ctio

n m

atte

rs p

endi

ng.

4.3.Efficientandeffective

func

tioni

ng o

f the

CC

C.

4.3.1.Conductstrategy

wor

ksho

p w

ith C

CC

.

Reportsand

wor

ksho

ps

As

mat

ters

aris

e

4.3.2.W

orkshopregionson

com

plai

nts

hand

ling

proc

ess

and

proc

edur

es.

Regulationspublishedforcomment

4.3.3.ReviewActre

penaltiesandfinesprocess.

ReviewofA

ctsCom

mitteeto

add

ress

the

mat

ter.

4.3.4.Reviewresource

requ

irem

ents

.

Aw

aitin

g A

SI r

epor

t.

4.3.5.Enforcelegislation,

regu

latio

ns a

nd li

cenc

e

cond

ition

s.

Don

e on

an

ongo

ing

basi

s by

oth

er

divi

sion

s. A

wai

ting

appr

oval

of a

n

enfo

rcem

ent u

nit w

ithin

ICA

SA

.

70

RE

GIO

NS

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r S

trat

egic

go

al: L

iber

alis

atio

n o

f th

e IC

T S

ecto

r

Op

erat

iona

l go

al: I

ssui

ng o

f te

chno

log

y ne

utra

l lic

ence

s ti

meo

usly

1. Is

sue

spec

trum

licen

sing

and

com

pete

ncie

s

certificates.

1.1.

Issu

e M

MS

I num

bers

forshipsandEPIRBS.

1.1.

1 U

niqu

e M

MS

I

num

bers

issu

ed.

Num

ber

of u

niqu

e

MM

SI n

umbe

rs

issu

ed.

Issu

e M

MS

I num

bers

.96

0uniqueMMSInum

bersissued.T

he

activ

ity is

cur

rent

ly o

nly

perfo

rmed

in

CapeTownregionaloffice.

1.2.

Issu

e pr

e-as

sign

ed

spec

trum

lice

nces

.

1.2.

1. P

roce

ss p

re-

assi

gned

spe

ctru

m

licen

ces.

Num

ber

of

pre-

assi

gned

spec

trum

lice

nses

proc

esse

d.

Pro

cess

pre

-ass

igne

d

spec

trum

lice

nces

.

960pre-assignedspectrumlicenses

proc

esse

d.

1.3.Adm

inisterRRTand

GM

DS

S e

xam

inat

ions

and

issuecertificates.

1.3.

1. E

xam

inat

ions

andissueRRTand

GMDSScertificates.

Num

bero

fRRT

and

GM

DS

S

certificatesissued.

IssueRRTandGMDSS

certificates.

960RRTandGMDSScertificates

issu

ed.

1.4.RegisterPersonal

Loca

tor

Bea

cons

.

1.4.1.Maintain

data

base

and

issu

e

uniq

ue n

umbe

r.

Num

ber

of u

niqu

e

num

bers

issu

ed.

Issu

e un

ique

num

bers

.28

0 un

ique

num

bers

issu

ed.

2. E

ffect

ive

cont

rol o

f

spec

trum

.

2.1.

Spe

ctru

m li

cenc

e

audi

ts.

2.1.1.Radiodealer/

alar

m c

ompa

ny/

repe

ater

sys

tem

s au

dit.

Num

ber

of

spec

trum

lice

nse

audi

t rep

orts

com

plet

ed.

Com

pile

spe

ctru

m li

cenc

e

audi

t.

96spectrumlicenceauditreports

com

plet

ed. T

his

activ

ity is

one

of o

ur

core

func

tions

and

we

grea

tly e

xcee

ded

this

targ

et. T

his

activ

ity w

as a

cced

ed a

t

the

expe

nse

of o

ther

targ

ets.

2.2.

Typ

e ap

prov

al a

nd

labe

lling

com

plia

nce

chec

ks.

2.2.

1. In

spec

tion

of d

istr

ibut

ion

and

sellin

g of

ele

ctro

nic

equi

pmen

t.

Num

ber

of

type

app

rova

l

insp

ectio

n re

port

s

com

plet

ed.

Con

duct

type

app

rova

l

insp

ectio

ns.

960typeapp

rovalinspectionrepo

rts

com

plet

ed.

2.3.

Spe

ctru

m m

onito

ring.

2.3.1.Radiofrequency

mon

itorin

g as

sign

men

t.

Num

berofR

adio

frequ

ency

dat

a

colle

ctio

n re

port

s

subm

itted

.

192

frequ

ency

dat

a co

llect

ion

repo

rts

subm

itted

.

71

Section 4R

EG

ION

S

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

2.3.2.Radiofrequency

com

plia

nce

mon

itorin

g.

Num

ber

of r

adio

frequ

ency

dat

a

colle

ctio

n re

port

s

subm

itted

.

Col

lect

pre

limin

ary

data

.28

8 fre

quen

cy d

ata

colle

ctio

n re

port

s

subm

itted

.

2.4.Radiofrequency

syst

em c

omm

issi

onin

g.

2.4.1.Confirming

tech

nica

l spe

cs o

f new

inst

alla

tions

.

Num

ber o

f

com

mis

sion

ing

certificatesissued.

Col

lect

pre

limin

ary

data

96com

missioningcertificatesissued.

2.5.

Inte

rfere

nce

inve

stig

atio

n an

d re

solu

tion.

2.5.

1. M

itiga

tion

and

reso

lutio

n of

rad

io

frequ

ency

int

erfe

renc

e.

Num

ber

of

inte

rfere

nce

repo

rts

com

plet

ed.

Com

missionRFcertificates

288

inte

rfere

nce

repo

rts

com

plet

ed.

2.6.High-siteinspections.

2.6.1.Confirming

tech

nica

l spe

cs o

f

exis

ting

licen

ce p

er

syst

em in

stal

led.

Num

ber

of

com

plia

nce

notifications

issu

ed.

Inve

stig

ate

inte

rfere

nce

com

plai

nts

96com

pliancenotificationsissued

3. C

ondu

ct p

ublic

educ

atio

n an

d

awar

enes

s.

3.1.

Con

duct

con

sum

er

awar

enes

s.

3.1.

1. C

ondu

ct r

adio

inte

rvie

ws.

Num

ber

of

radi

o in

terv

iew

sche

dule

s

sign

ed b

y ra

dio

anno

unce

r/

inte

rvie

wer

.

Con

duct

pub

lic e

duca

tion

radi

o in

terv

iew

s

54radiointerviews.

3.2.

Con

duct

con

sum

er

awar

enes

s.

3.2.

1. C

ondu

ct

awar

enes

s

pres

enta

tions

to

scho

ols,

clin

ics,

trib

al

head

s, c

omm

uniti

es,

com

mun

ity b

ased

orga

nisa

tions

in r

ural

and

unde

r se

rvic

es

area

s.

Num

ber

of

atte

ndan

ce

regi

ster

s

subm

itted

with

sum

mar

y of

outc

omes

.

Com

pile

att

enda

nce

regi

ster

s

693attendanceregisterssubm

itted

with

sum

mar

y of

out

com

es.

72

RE

GIO

NS

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

4.Monitorlicence

term

s an

d co

nditi

ons.

4.1.MonitoringofSAPO

licen

ce c

ondi

tions

.

4.1.1.Monitoring

of S

AP

O li

cenc

e

cond

ition

s.

Num

ber

of

com

plia

nce

repo

rts

com

plet

ed.

Com

pile

att

enda

nce

repo

rts.

1 00

8 co

mpl

ianc

e re

port

s co

mpl

eted

.

4.2.Monitoringof

unre

serv

ed p

osta

l ser

vice

(Cou

rier

com

pani

es).

4.2.1.Monitoringof

unre

serv

ed p

osta

l

serv

ice

(Cou

rier

com

pani

es).

Num

ber

of

com

plia

nce

repo

rts

com

plet

ed.

Com

pile

repo

rts.

288

com

plia

nce

repo

rts

com

plet

ed.

4.3.MonitoringofECS/

EC

NS

lice

nsee

s.

4.3.1.Monitoringof

EC

S/E

CN

S li

cens

ees.

Num

ber

of

com

plia

nce

repo

rts

com

plet

ed.

Com

pile

repo

rts.

170

4compliancerepo

rtscompleted.

4.4.Monitoringof

Bro

adca

stin

g S

ervi

ces.

4.4.1.Monitoringof

Bro

adca

stin

g S

ervi

ces.

Num

ber

of

com

plia

nce

repo

rts

com

plet

ed.

Com

pile

repo

rts.

48com

pliancerepo

rtscompleted.

5. E

nfor

cem

ent o

f

legi

slat

ion.

5.1.

Inve

stig

atio

n of

non

rene

wed

spe

ctru

m

licen

ces.

5.1.

1. T

race

ope

rato

r

and

seal

rad

io

equi

pmen

t.

Num

ber

of

sealingfiles

com

plet

ed.

Sendcompletedfiles.

720sealingfilescom

pleted.

5.2.

Inve

stig

atio

n of

non-

type

app

rove

d E

C

equi

pmen

t and

labe

lling.

5.2.

1. T

raci

ng o

f

dist

ribut

ion

and

sale

of E

C e

quip

men

t and

labe

lling.

Num

ber

of

repo

rts

for

CC

C/

Cou

ncil/

Cou

rt

com

plet

ed.

Com

pile

repo

rts.

36repo

rtsforCCC/Council/Court

com

plet

ed.

5.3.

Inve

stig

atio

n of

ille

gal

EC

S, E

CN

S, p

osta

l and

broa

dcas

ting

serv

ices

.

5.3.

1. T

raci

ng o

f ille

gal

prov

isio

n of

ser

vice

s.

Num

ber

of

repo

rts

for

CC

C/

Cou

ncil/

Cou

rt

com

plet

ed.

Com

pile

repo

rts.

18 re

port

s fo

r C

CC

/Cou

ncil/

Cou

rt

com

plet

ed.

73

Section 4C

OM

MU

NIC

AT

ION

AN

D IN

TE

RN

AT

ION

AL

RE

LAT

ION

S D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

2009

/10

fina

ncia

l yea

r S

trat

egic

go

al:

Pro

mo

te a

cces

s to

info

rmat

ion

abo

ut IC

AS

A’s

act

ivit

ies

Op

erat

iona

l go

al:

Kee

p p

ublic

and

sta

keho

lder

s in

form

ed a

bo

ut I

CA

SA

’s r

egul

ato

ry a

ctiv

itie

s

1. F

acilit

ate

publ

ic

and

stak

ehol

der

acce

ss to

info

rmat

ion

rela

ting

to th

e

Authority’sregulatory

activ

ities

.

1.1.

Com

mun

icat

e th

e

Authority’sregulatory

activ

ities

to p

ublic

and

stak

ehol

ders

.

1.1.1.A

nnualR

eport.

Report

Produce1500

Hard

Cop

ies

and

500

CD

s.

AnnualR

eportp

roducedandtabledin

Par

liam

ent.

1.2.

Com

mun

icat

e th

e

Authority’sregulatory

activ

ities

to p

ublic

and

stak

ehol

ders

.

1.2.

1. M

edia

rele

ases

.N

umbe

r of

Med

ia

Releases

Issu

e m

edia

rele

ases

.37

med

ia re

leas

es is

sued

.

1.3.Respo

ndingtopublic

and

stak

ehol

der

enqu

iries

1.3.1.Respo

nsesto

gene

ral e

nqui

ries.

Num

ber

of E

nqui

ry

resp

onse

s

2 50

0 re

spon

ses

to

enqu

iries

.

565

9enquiriesreceived,5

65

reso

lved

.

1.4.Respo

ndingto

media

enqu

iries

.

1.4.1.Mediainterviews.

Num

ber

of m

edia

enqu

ires

Med

ia in

terv

iew

s as

per

requ

est o

r w

hen

nece

ssar

y.

Arranged47

mediainterviews.

1.5.

Com

mun

icat

e th

e

Authority’sregulatory

activ

ities

to p

ublic

and

stak

ehol

ders

.

1.5.

1. S

take

hold

ers

mee

tings

.

Pla

n nu

mbe

r of

mee

tings

May

and

Oct

200

9.S

take

hold

er m

eetin

g he

ld.

1.6.Sensitiseallemployees

abou

t ind

ustr

y pe

rcep

tions

abou

t the

Aut

horit

y.

1.6.1.Perception/

ReputationSurvey

Pre

sent

atio

ns t

o di

visi

ons

andregionaloffices.

Com

pile

repo

rtP

rese

ntat

ions

to b

e

mad

e to

ten

divi

sion

s

and

six

regi

onal

offices.

ReputationSurveypresentationmade

to a

ll di

visi

ons.

1.7.

Com

mun

icat

e th

e

Authority’sregulatory

activ

ities

to p

ublic

and

stak

ehol

ders

.

1.7.1Regionalm

edia

road

-sho

ws.

Pla

n nu

mbe

r of

road

show

s

12 v

isits

to m

edia

hous

es p

lann

ed.

Four

med

ia v

isits

con

duct

ed.

1.8.

Com

mun

icat

e th

e

Authority’sregulatory

activ

ities

to p

ublic

and

stak

ehol

ders

.

74

CO

MM

UN

ICA

TIO

N A

ND

INT

ER

NA

TIO

NA

L R

ELA

TIO

NS

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

2009

/10

fina

ncia

l yea

r S

trat

egic

go

al:

Po

siti

on

ICA

SA

fav

our

ably

bef

ore

pub

lic a

nd s

take

hold

ers

Op

erat

iona

l go

al:

Bra

nd a

nd m

arke

t th

e A

utho

rity

to

pub

lic a

nd s

take

hold

ers

2. B

rand

and

prom

ote

awar

enes

s

amon

g th

e pu

blic

and

stak

ehol

ders

abouttheAuthority’s

man

date

.

2.1.

Com

mun

icat

e th

e

Authority’sregulatory

activ

ities

to p

ublic

and

stak

ehol

ders

.

2.1

.1. N

otic

es in

elec

tron

ic a

nd p

rint

med

ia.

Num

ber

of n

otic

esP

lan

to p

lace

10

Con

sum

er A

ffairs

and

Cor

pora

te N

otic

es in

elec

tron

ic a

nd p

rint

med

ia.

Two

med

ia n

otic

es p

lace

d in

nat

iona

l

new

spap

ers.

2.2.

Com

mun

icat

e th

e

Authority’smandateto

publ

ic a

nd s

take

hold

ers.

2.2.

1. P

rodu

ctio

n of

broc

hure

s.

Pro

duct

ion

of IC

AS

A

broc

hure

Pla

n to

pro

duce

corp

orat

e an

d

Con

sum

er A

ffairs

broc

hure

s.

No

budg

et a

vaila

ble.

2.3.

Com

mun

icat

e th

e

Authority’smandateto

publ

ic a

nd s

take

hold

ers.

2.3.

1. C

orpo

rate

Vid

eo

tran

slat

ions

.

Num

ber

of tr

ansl

atio

nsFi

nal

copy

for

inte

rnal

and

ext

erna

l

audi

ence

s in

Eng

lish,

Ses

otho

, Xits

onga

,

Chi

Vend

a, is

iZul

u

&A

frika

ans.

Pro

ject

com

plet

ed. V

ideo

tran

slat

ed

intotheofficiallanguages.

2.4.PositionAuthority

favo

urab

ly b

efor

e pu

blic

and

stak

ehol

ders

.

2.4.1.Productionof

exhi

bitio

n st

ands

.

Pro

duce

exh

ibiti

on

stan

d

Com

mis

sion

corp

orat

e an

d

Con

sum

er A

ffairs

exhi

bitio

ns s

tand

s.

No

budg

et a

vaila

ble.

2.5.

Pos

ition

Aut

horit

y

favo

urab

ly b

efor

e pu

blic

and

stak

ehol

ders

.

2.5.

1. P

rom

otio

nal

mat

eria

l.

Num

ber

of

prom

otio

nal m

ater

ial

proc

ured

Dis

trib

ute

mat

eria

l to

visi

ting

gues

ts.

No

proc

urem

ent t

ook

plac

e.

2.6.ProfileAuthority’s

inte

rnal

and

ext

erna

l

activ

ities

.

2.6.1.PhotoAlbum

of

inte

rnal

and

ext

erna

l

even

ts.

Alb

um o

f eve

nts

10 e

vent

s29

ext

erna

l and

inte

rnal

eve

nts

capt

ured

for

phot

o al

bum

.

75

Section 4C

OM

MU

NIC

AT

ION

AN

D IN

TE

RN

AT

ION

AL

RE

LAT

ION

S D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

2009

/10

fina

ncia

l yea

r

2.7.

Mon

itor

med

ia

cove

rage

abo

ut A

utho

rity

and

the

indu

stry

.

2.7.

1. M

edia

mon

itorin

g

serv

ice.

Com

plet

e an

d pr

esen

t

repo

rts

To c

omm

issi

on D

aily

repo

rts

and

quar

terly

anal

ysis

.

Dai

ly m

edia

mon

itorin

g re

port

s an

d

quar

terly

ana

lysi

s pr

esen

ted

to E

XCO

and

Cou

ncil.

2.7.

2. N

ewsp

aper

subs

crip

tions

.

Num

ber

of

subs

crip

tions

Renew

new

spaper

subs

crip

tion.

Exp

ired

subs

crip

tions

rene

wed

.

2.8.

Adv

ise

and

deve

lop

com

mun

icat

ions

and

exte

rnal

rela

tions

str

ateg

y

for C

ounc

il an

d Ex

ecut

ive

on

Pro

visi

on o

f pub

lic re

latio

ns

supp

ort t

o A

utho

rity.

2.8.1.StrategyReport.

Pre

sent

repo

rtC

omm

issi

on re

port

.S

trat

egy

pres

ente

d to

Exc

o an

d

Cou

ncil.

Str

ateg

ic g

oal

: P

rom

ote

inte

rnal

flo

w o

f in

form

atio

n an

d e

nhan

ce e

mp

loye

e m

ora

leO

per

atio

nal g

oal

: P

ublis

h an

d d

isse

min

ate

org

anis

atio

nal i

nfo

rmat

ion

thro

ugh

a va

riet

y o

f m

edia

reg

ular

ly a

nd t

o h

ost

inte

rnal

fun

ctio

ns a

nd e

vent

s

3. E

nsur

e th

at

empl

oyee

s ar

e

info

rmed

abo

ut

orga

nisa

tiona

l pol

icie

s

and

proc

edur

es a

nd

to e

nhan

ce m

oral

e.

3.1.

Com

mun

icat

e

orga

nisa

tiona

l act

iviti

es,

polic

ies

to s

taff.

3.1.

1. Q

uart

erly

mee

tings

atHeadOffice,and

half-

year

ly m

eetin

gs a

t

regi

ons.

Num

ber

of m

eetin

gsPlanfourHeadOffice

Sta

ff M

eetin

gs a

nd

eightR

egionalO

ffice

Sta

ff m

eetin

gs.

StaffmeetingsheldatHeadand

regionaloffices.

Four

regi

onal

mee

tings

hel

d.

3.2.

Com

mun

icat

e

orga

nisa

tiona

l act

iviti

es,

polic

ies

and

even

ts to

sta

ff.

3.2.

1. D

aily

ele

ctro

nic

newsflash.

Num

ber

of n

ews

flashes

120newsflashesto

be d

istr

ibut

ed.

189newsflashesissued.

3.3.

Com

mun

icat

e

orga

nisa

tiona

l act

iviti

es,

polic

ies

and

even

ts to

sta

ff.

3.3.

1. E

lect

roni

c

inte

ract

ive

site

.

Intr

anet

site

Pub

lish

120

docu

men

ts o

n

Intr

anet

.

Con

sulta

tion

unde

rway

with

div

isio

ns

to c

olla

te m

ater

ial t

o be

pub

lishe

d on

intr

anet

.

3.4.Com

municate

orga

nisa

tiona

l act

iviti

es,

polic

ies

and

even

ts to

sta

ff.

3.4.1.Quarterlyinternal

new

slet

ter.

Num

ber

of n

ewsl

ette

rsP

lan

to p

ublis

h fo

ur

editi

ons.

Four

inte

rnal

new

slet

ter

editi

ons

publ

ishe

d an

d di

strib

uted

.

3.5.

Mot

ivat

e em

ploy

ees

thro

ugh

team

-bui

ldin

g

func

tions

and

eve

nts.

3.5.

1. In

tern

al F

unct

ions

and

even

ts.

Num

ber

of fu

nctio

nsP

lan

to h

ost 1

0

even

ts.

All

inte

rnal

eve

nts

host

ed a

s pl

anne

d.

76

CO

MM

UN

ICA

TIO

N A

ND

INT

ER

NA

TIO

NA

L R

ELA

TIO

NS

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

2009

/10

fina

ncia

l yea

r S

trat

egic

go

al:

Co

ord

inat

e A

utho

rity

’s in

tern

atio

nal r

ole

and

act

ivit

ies

Op

erat

iona

l go

al:

Faci

litat

e th

e A

utho

rity

’s p

arti

cip

atio

n in

inte

rnat

iona

l fo

r a

and

co

mp

lianc

e w

ith

inte

rnat

iona

l co

nven

tio

ns

4.EnsureAuthority’s

part

icip

atio

n in

and

com

plia

nce

with

inte

rnat

iona

l

conv

entio

ns.

4.1.Prepareayearly

sche

dule

for

mee

tings

.

4.1.1.ITU

andUPU

conf

eren

ces

and

mee

tings

/wor

ksho

ps.

Pla

n/co

mpi

latio

n of

cale

ndar

of m

eetin

gs.

Pro

vide

regi

ster

ed

supp

ort t

o 12

cale

ndar

mee

tings

.

Representationsecuredtorelevant

inte

rnat

iona

l for

a as

per

cal

enda

r.

4.2.Prepareandmanage

budg

et.

4.3.Preparesubmissions

for

appr

oval

by

exce

l and

Cou

ncil.

Str

ateg

ic g

oal

: C

oo

rdin

ate

the

Aut

hori

ty’s

bila

tera

l rel

atio

ns w

ith

reg

iona

l and

co

ntin

enta

l org

anis

atio

nsO

per

atio

nal g

oal

: Fa

cilit

ate

coo

per

atio

n w

ith

oth

er r

egul

ato

rs o

n ar

eas

of

com

mo

n in

tere

st, s

kills

tra

nsfe

r

5. P

rom

ote

coop

erat

ion

with

othe

r re

gula

tors

5.1.

Pre

pare

a y

early

sche

dule

for

mee

tings

.

5.1.

1. M

OU

, har

mon

ised

regu

latio

ns a

nd

stan

dard

s.

Cal

enda

r of

mee

tings

Pro

vide

regi

ster

ed

supp

ort t

o 12

cale

ndar

mee

tings

.

5.2.

Man

age

budg

et;

Representationtorelevantregional

and

cont

inen

tal f

ora

secu

red

as p

er

cale

ndar

.

5.3.

Pre

pare

sub

mis

sion

s

for

appr

oval

by

Exc

o an

d

Cou

ncil.

5.4.Facilitatebilateral

rela

tions

with

oth

er

regu

lato

rs.

5.4.1.Bilateralstudy

visi

ts.

Pla

n an

d ar

rang

e

stud

y vi

sits

as

they

aris

e.

Hostb

ilateralvisitsas

requ

sted

.

Hostedallbilateralinternational

dele

gatio

ns a

s pe

r re

ques

t.

5.4.2.Affiliationto

rele

vant

inte

rnat

iona

l

orga

nisa

tions

.

Subscribetoallfive

orga

nisa

tions

.

Honouredallaffiliationsto

relevant

inte

rnat

iona

l org

anis

atio

ns.

77

Section 4A

DM

INIS

TR

AT

ION

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r S

trat

egic

go

al:

Cre

atin

g r

egul

ato

ry c

erta

inty

Op

erat

iona

l go

al:

Pro

visi

on

of

com

mun

icat

ions

reg

ulat

ory

info

rmat

ion

to s

take

hold

ers

1. E

nsur

e IC

AS

A

RecordsManagem

ent

(RM)haseffective

Kno

wle

dge

Man

agem

ent S

yste

ms

(KM

S).

1.1.

Dev

elop

men

t of I

CA

SA

Libr

ary

into

a v

irtua

l lib

rary

/

Info

rmat

ion

hub.

1.1.

1. E

lect

roni

c da

taba

ses

for

divi

sion

s.

Reporto

n

elec

tron

ic

reso

urce

s

requ

ired.

Thefollowingdatabasesareavailalbe:

Sabinet,IEEEenterprise,IR

Network,

Bus

ines

s M

onito

r In

tern

atio

nal,

Juta

Onl

in P

ublic

atio

ns, S

prin

gerli

nk,

Bus

ines

s S

ourc

e C

orpo

rate

1.1.

2. L

inks

to a

ll el

ectr

onic

reso

urce

s on

the

Inte

rnet

.

Resources

avai

labl

e.

Intr

anet

not

yet

ope

ratio

nal.

1.2.

Sta

ndar

dise

d Fi

le P

lan

impl

emen

tatio

n th

roug

hout

ICA

SA

.

1.2.1Uniform

filecoversfor

File

Pla

n.

File

cov

ers.

Uniform

filecoverscompliantwith

NARS.

1.2.2.FilePlanatHead

Office.

Pro

cess

in p

lace

.ICASAusesanapp

rovedfileplanto

clas

sify

doc

umen

ts.

1.2.3.FilePlanatRegional

offices.

Pro

cess

in p

lace

.App

rovedfileplanro

lledoutinall

Regionaloffices.

1.3.

Impl

emen

tatio

n of

an E

lect

roni

c D

ocum

ent

RecordsManagem

ent

System(E

DRMS).

1.3.1.Designspecifications

forEDRMSS

pecifications.

Requestfor

quot

atio

ns.

Specificationshavebeendesigned,

adve

rtis

ed, e

valu

atio

n an

d se

rvic

e

prov

ider

reco

mm

ende

d.

1.3.2.EDRMSinthe

RecordsManagem

ent

(RM)section,CEOand

Chairperson’soffices.

Pro

cess

in p

lace

.Recom

mendedsupp

lierssubmittedto

BA

C fo

r ap

prov

al.

1.4.Furtherdevelop

ment

offullfunctionRegistryin

line

with

Nat

iona

l Arc

hive

s

guid

elin

es.

1.4.1.RegistryHead

appo

intm

ent.

Add

ition

al

head

coun

t.

CurrentRegistryHeadappo

intedon

cont

ract

bas

is, p

endi

ng a

ppro

val o

f the

posi

tion

in th

e or

gano

gram

.

1.4.2.Registryspaceplan

layo

ut.

Spa

ce p

lan

Spa

ce p

lan

com

plet

ed b

ut n

ot

impl

emen

ted,

pen

ding

imm

inen

t

relo

catio

n to

the

new

bui

ldin

g.

1.4.3.RegistryProcedures

man

ual.

Pro

cess

in p

lace

.P

roce

dure

s fo

r m

anua

l adh

eren

ce

currentlyat7

5%.

78

AD

MIN

IST

RA

TIO

N D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

1. E

nsur

e IC

AS

A

RecordsManagem

ent

(RM)haseffective

Kno

wle

dge

Man

agem

ent S

yste

ms

(KM

S) (

cont

inue

d).

1.5.

Dev

elop

men

t of

RecordsManagem

ent

func

tions

in li

ne w

ith

Nat

iona

l Arc

hive

s

guid

elin

es.

1.5.1.DraftRecords

Man

agem

ent P

olic

y.

Pol

icy

docu

men

tP

olic

y do

cum

ent

Draftpo

licyfinalised.

1.5.

2. W

orks

hop

on

RecordsManagem

entP

olicy

orga

nisa

tion

wid

e.

Wor

ksho

psW

orks

hops

Pol

icy

wor

ksho

pped

with

in th

e

Adm

inis

trat

ion

divi

sion

and

pre

sent

ed

to E

XCO

and

Cou

ncil.

For

com

plet

e

achi

evem

ent,

it m

ust b

e w

orks

hopp

ed

orga

nisa

tion

wid

e.

1.6.ResearchInternational

benc

hmar

king

aga

inst

oth

er

Com

municationRegulatory

bodi

es o

n K

now

ledg

e

Man

agem

ent S

yste

ms

(KM

S)

1.6.1Benchmarkingrepo

rt.

Researchrepo

rtin

2010

.

Researchrepo

rtin

2010

Put

on

hold

due

to b

udge

tary

cons

trai

nts;

sch

edul

ed fo

r cu

rren

t

financialyear,pendingfundsbeing

mad

e av

aila

ble.

1.6.2.Studyvisitsto

at

leas

t tw

o re

gula

tors

from

deve

lopi

ng e

cono

mie

s.

Vis

its re

port

in 2

010.

Vis

its re

port

in

2010

Put

on

hold

due

to b

udge

tary

cons

trai

nts;

sch

edul

ed fo

r cu

rren

t

financialyear,pendingfundsbeing

mad

e av

aila

ble.

1.6.3.Knowledg

e

Man

agem

ent S

yste

m (K

MS

)

repo

rt.

Recom

mendation

repo

rt in

201

0.

Recom

mendation

repo

rt in

201

0

Put

on

hold

due

to b

udge

tary

cons

trai

nts;

sch

edul

ed fo

r cu

rren

t

financialyear,pendingfundsbeing

mad

e av

aila

ble.

Str

ateg

ic g

oal

: E

xecu

ting

ser

vice

del

iver

y ef

fici

entl

y an

d e

ffec

tive

lyO

per

atio

nal g

oal

: E

nsur

e ef

fect

ive

mo

nito

ring

of

del

iver

y an

d p

erfo

rman

ce

2. Id

entif

y an

d se

cure

the

mos

t str

ateg

ical

ly

posi

tione

d pr

oper

ties

forICASAoffices.

2.1.

Pro

visi

on o

f sui

tabl

e

and

acce

ssib

le/c

onve

nien

t

officesforallICASA

regi

ons.

Relocationofoffices:

2.1.

1.

Cap

e To

wn

New

leas

e ag

reem

ent.

New

leas

e

agre

emen

t

New

leas

e si

gned

by

CE

O a

nd la

ndlo

rd.

Occ

upat

ion

date

is 1

Jul

y 20

10.

2.1.2.PortE

lizabeth

New

leas

e ag

reem

ent.

New

leas

e

agre

emen

t

Recom

mendedsupp

lierwasnot

appr

oved

by

BA

C.

Bid

re-a

dver

tised

,

clos

ing

on 1

8 M

ay 2

010.

2.1.

3.

Pre

toria

New

leas

e ag

reem

ent.

New

leas

e

agre

emen

t

RelocationofPretoriaofficehasbeen

movedto

theRegions’o

ffice.

2.1.4.M

pumulanga

Leas

e ag

reem

ent.

Leas

e ag

reem

ent

RelocationofPretoriaofficehasbeen

movedto

theRegions’o

ffice.

79

Section 4A

DM

INIS

TR

AT

ION

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

2.1.5.HeadOffice

Relocationstudy

reco

mm

enda

tion

Relocationstudy

reco

mm

enda

tion

Feas

ibilit

y st

udy

repo

rt, w

ith

reco

mm

enda

tions

ava

ilabl

e

2.2.

Con

clus

ion

and

man

agem

ent o

f new

leas

e

agre

emen

ts fo

r re

gion

al

officeswithlandlord’slease

term

s.

Landlord’sleaseterm

s:C

ape

Tow

n le

ase

agre

emen

t sig

ned.

PE

leas

e ag

reem

ent a

wai

ting

clos

ing

of

re-a

dver

tised

tend

er (1

8 M

ay 2

010)

.

2.2.1.PortE

lizabethand

Cap

e To

wn

Landlord’sleaseterm

sLandlord’slease

term

s

2.2.

2. P

reto

riaLandlord’sleaseterm

sLandlord’slease

term

s

RelocationofPretoriaofficehasbeen

movedto

theRegions’o

ffice.

2.3.

Con

clus

ion

and

man

agem

ent

of n

ew le

ase

agreem

entsfo

rHead

Officewithland

lord’slease

term

s.

2.3.1.HeadOfficelandlord’s

leas

e te

rms.

Landlord’sleaseterm

sLandlord’slease

term

s

Activityscheduledfor20

10/11financial

year

.

Str

ateg

ic g

oal

: E

xecu

ting

ser

vice

del

iver

y ef

fici

entl

y an

d e

ffec

tive

lyO

per

atio

nal g

oal

: E

nsur

e ef

fect

ive

mo

nito

ring

of

del

iver

y an

d p

erfo

rman

ce

3.

Impr

ove

man

agem

ent a

nd

usef

ul li

fe o

f ass

ets.

3.1.Specificationof

orga

nisa

tion-

wid

e an

alys

is

for

asse

ts re

quire

men

ts.

3.1.

1. A

sset

s an

alys

is re

port

Nee

ds a

naly

sis

repo

rtN

eeds

ana

lysi

s

repo

rt

Nee

ds a

naly

sis

was

con

duct

ed

and

subm

itted

to S

uppl

y C

hain

Man

agem

ent.

3.2.Develop

asetofoffice

asse

ts a

lloca

tion

crite

ria.

3.2.1.Standardisedoffice

asse

ts a

lloca

tion

crite

ria b

y

man

agem

ent l

evel

.

Reportandpolicy

Reportandpolicy

Ass

ets

allo

catio

n cr

iteria

ava

ilabl

e.

3.3.Efficientandeffective

plan

ning

and

acq

uisi

tion

of

asse

ts in

line

with

ICA

SA

polic

ies,

sup

ply

chai

n

man

agem

ent a

nd N

atio

nal

Trea

sury

gui

delin

es.

3.3.

1. A

sset

repl

acem

ent

and

acqu

isiti

on p

lan.

Pla

nnin

g re

port

Pla

nnin

g re

port

Mon

thly

repo

rts

gene

rate

d an

d

avai

labl

e.

3.3.2.ReviewedJDEassets

regi

ster

.

Mon

thly

repo

rt to

Fina

nce

Mon

thly

repo

rt to

Fina

nce

Mon

thly

repo

rts

gene

rate

d an

d

avai

labl

e.

3.4.Efficientandeffective

man

agem

ent o

f ass

ets

durin

g us

eful

ope

ratin

g lif

e.

3.4.1.Detailedassetrepairs

andmaintenance(R

&M)

reco

rd.

R&Mrepo

rtR&Mrepo

rtC

ontr

act m

anag

emen

t don

e da

ily a

nd

disp

ariti

es re

port

ed to

ser

vice

pro

vide

rs.

3.4.2.Insurancecoverforall

asse

t cla

sses

.

Insu

ranc

e re

port

sIn

sura

nce

repo

rts

Insu

ranc

e st

atus

repo

rt a

vaila

ble.

80

AD

MIN

IST

RA

TIO

N D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

3.

Impr

ove

man

agem

ent a

nd

usef

ul li

fe o

f ass

ets

(con

tinue

d).

3.4.3.Com

prehensive

Insu

ranc

e cl

aim

s re

cord

s.

Cla

im re

port

sC

laim

repo

rts

List

of i

nsur

ance

cla

ims

for

four

th

quar

ter

avai

labl

e.

3.4.4.Terminationand

loss

rep

ort

to J

DE

ass

ets

regi

ster

.

Dis

posa

l rep

orts

Dis

posa

l rep

orts

EXC

O a

ppro

ved

four

th q

uart

er d

ispo

sal

list.

3.5.Efficientandeffective

disp

osal

of a

sset

s in

line

with

ICA

SA

pol

icie

s, s

uppl

y

Cha

in M

anag

emen

t and

Nat

iona

l Tre

asur

y gu

idel

ines

.

3.5.

1. A

sset

use

ful l

ife a

nd

repl

acem

ent r

ecor

d.

Replacementreports

Replacement

repo

rts

No

repl

acem

ents

in fo

urth

qua

rter

.

3.5.

2. D

ispo

sals

repo

rt to

JDE

ass

ets

regi

ster

.

Dis

posa

l rep

orts

Dis

posa

l rep

orts

App

roveddisposalrepo

rtforQ4is

avai

labl

e.

Str

ateg

ic g

oal

: E

xecu

ting

ser

vice

del

iver

y ef

fici

entl

y an

d e

ffec

tive

lyO

per

atio

nal g

oal

: E

nsur

e ef

fect

ive

mo

nito

ring

of

del

iver

y an

d p

erfo

rman

ce

4.Improve

man

agem

ent o

f and

usef

ul li

fe o

f Fle

et

vehi

cles

.

4.1.Provisionand

man

agem

ent o

f rel

iabl

e

fleetto

fulfilthemandateof

ICA

SA

.

4.1.1.Transpo

rtcontrol

syst

em.

Pol

icy

/ P

roce

dure

s.P

olic

y /

Pro

cedu

res

Sec

ond

Dra

ft po

licy

unde

r re

view

.

4.1.2.BrandedIC

ASAfleet.

Bra

ndin

g in

201

0.B

rand

ing

in 2

010

Quo

tes

rece

ived

from

ser

vice

pro

vide

r.

CE

O re

com

men

ded

Com

mun

icat

ions

andRegions’o

fficeto

beinvolved

befo

re im

plem

enta

tion.

4.1.3.Vehiclemanagem

ent

syst

em.

Con

trac

t with

ser

vice

prov

ider

.

Con

trac

t with

serv

ice

prov

ider

.

Sky

trax

fully

func

tiona

l and

acc

essi

ble.

4.1.4.NedFleetsystem

upgr

ade.

Revisedagreement.

Revised

agre

emen

t.

Exi

stin

g ag

reem

ent s

till i

n pl

ace

& b

eing

mon

itore

d fo

r co

rrec

t im

plem

enta

tion.

4.2.Specificationof

orga

nisa

tion-

wid

e

analysisforvehiclefleet

requ

irem

ents

.

4.2.1.Organisation-wide

vehi

cle

need

s an

alys

is.

Nee

ds a

naly

sis

and

requ

isiti

ons

repo

rt.

Nee

ds a

naly

sis

and

requ

isiti

ons

repo

rt.

Nee

ds a

naly

sis

cond

ucte

d an

d

subm

itted

to S

uppy

Cha

in, a

nd

appr

oved

by

EXC

O.

81

Section 4A

DM

INIS

TR

AT

ION

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

4.3.Efficientandeffective

plan

ning

and

acq

uisi

tion

of

vehi

cles

in li

ne w

ith IC

AS

A

polic

ies

and

supp

ly C

hain

Man

agem

ent a

nd N

atio

nal

Trea

sury

gui

delin

es.

4.3.1.Vehiclereplacem

ent

and

acqu

isiti

on p

lan

Flee

t pla

nnin

g re

port

Flee

t pla

nnin

g

repo

rt

Registersreview

edandupd

ated

mon

thly.

4.3.2.JDEAssetsRegister

repo

rt

ReporttoFinance

ReporttoFinance

Registersreview

edandupd

ated

mon

thly.

4.4.Efficientandeffective

man

agem

ent o

f veh

icle

s

durin

g us

eful

ope

ratin

g lif

e.

4.4.1.Vehiclerunningcost,

repa

irs a

nd m

aint

enan

ce

(R&M)record.

Runningcosts,R

&M

repo

rt

Runningcosts,

R&Mrepo

rt.

Nedfleetrepo

rtsanalysedmonthlyand

exce

ptio

n di

scre

panc

ies

inve

stig

ated

.

4.4.2.Insurancecoverrepo

rtIn

sura

nce

repo

rts

Insu

ranc

e re

port

sMonthlyrecordsoninsurancefiled.

4.4.3.Insuranceclaims

reco

rd.

Cla

im re

port

sC

laim

repo

rts

Monthlyrecordsoninsurancefiled.

4.4.4.Terminationand

loss

rep

ort

to J

DE

ass

ets

regi

ster

.

Dis

posa

l rep

orts

Dis

posa

l rep

orts

Vehi

cles

app

rove

d fo

r di

spos

al

auct

ione

d to

man

agem

ent.

4.5.Efficientandeffective

disp

osal

of v

ehic

les

in li

ne

with

ICA

SA

pol

icie

s, s

uppl

y

Cha

in M

anag

emen

t and

Nat

iona

l Tre

asur

y gu

idel

ines

.

4.5.1.Vehicleusefullifeand

repl

acem

ent r

epor

t.

Replacementreports

Replacement

repo

rts

BA

C a

ppro

ved

vehi

cle

repl

acem

ent,

pend

ing

budg

et a

vaila

bilit

y.

4.5.2.Dispo

salsrepo

rtto

JDE

ass

ets

regi

ster

.

ReportingtoFinance

Reportingto

Fina

nce

Dis

posa

l rep

orts

are

ava

ilabl

e.

Str

ateg

ic g

oal

: E

xecu

ting

ser

vice

del

iver

y ef

fici

entl

y an

d e

ffec

tive

lyO

per

atio

nal g

oal

: E

nsur

e ef

fect

ive

mo

nito

ring

of

del

iver

y an

d p

erfo

rman

ce

5.

Impr

ove

man

agem

ent a

nd

serv

ice

deliv

ery

of

ICASAofficefacilities.

5.1.

Pro

per

mai

nten

ance

of

officeservicefacilities.

5.1.

1. S

ervi

ces

cont

ract

s

and

SLA

s.

SLA

pro

gres

s re

port

SLA

pro

gres

s

repo

rt

Cle

anin

g co

ntra

ct e

xten

sion

requ

este

d,

awai

ting

BA

C a

ppro

val;

phot

ocop

ier

cont

ract

aw

aitin

g B

AC

app

rova

l for

exte

nsio

n. C

ontr

act m

anag

emen

t/

disp

ariti

es b

eing

repo

rted

to S

CM

.

5.1.

2. In

tegr

ated

pai

ntin

g,

repa

irs a

nd fu

rnitu

re p

lan.

Spa

ce p

lann

ing

repo

rtS

pace

pla

nnin

g

repo

rt

Spa

ce p

lann

ing

repo

rt a

vaila

ble,

put

onholdduetoim

minentH

eadOffice

relo

catio

n.

5.1.

3. M

onth

ly in

spec

tion

repo

rt.

Insp

ectio

n re

port

Insp

ectio

n re

port

Mon

thly

repo

rts

gene

rate

d an

d

avai

labl

e.

82

AD

MIN

IST

RA

TIO

N D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

5.

Impr

ove

man

agem

ent a

nd

serv

ice

deliv

ery

of

ICASAofficefacilities

(con

tinue

d).

5.2.

Pro

mpt

resp

onse

and

effe

ctiv

e so

lutio

ns to

all

requ

ests

for

faci

lity

serv

ices

or c

ompl

aint

s.

5.2.

1. S

ervi

ce L

evel

Agr

eem

ents

(SLA

s)

Respo

nseCentre

Respo

nseCentre

Respo

nsecentreatd

raftstage.

5.2.2.Officefacilities

oper

atin

g in

line

with

SLA

s

SLA

pro

gres

s re

port

SLA

pro

gres

s

repo

rt

Con

trac

t man

agem

ent d

one

daily

and

disp

ariti

es re

port

ed to

SC

M.

5.3.

Sou

rce

suita

ble

serv

ice

prov

ider

in li

ne w

ith S

CM

polic

y fo

r bi

d pr

oces

s

for

outs

ourc

ed c

ourie

r

serv

ices

.

5.3.

1. C

ourie

r se

rvic

e

agre

emen

t

SLA

pro

gres

s re

port

SLA

pro

gres

s

repo

rt

BE

E s

ervi

ce p

rovi

ders

in p

lace

.

5.4.Im

ageandservice

deliv

ery

in IC

AS

A re

cept

ion

area

s.

5.4.1.Upg

radedreception

area

s

Impr

ovem

ent p

lan

Impr

ovem

ent p

lan

Receptionareasupgradedaccordingly

with

rele

vant

reso

uces

.

5.5.“AnsweringRespo

nse

Tim

e” i

nitia

tive

for

tele

phon

e an

d ot

her

com

mun

icat

ion

syst

ems

with

in IC

AS

A.

5.5.

1. S

ervi

ce L

evel

Agr

eem

ent (

SLA

s).

Bus

ines

s

com

mun

icat

ion

and

etiq

uett

e

Bus

ines

s

com

mun

icat

ion

and

etiq

uett

e

To b

e im

plem

ente

d in

con

junc

tion

with

the

revi

sed

and

appr

oved

tele

phon

e

polic

y.

5.6.AwarenessofVIPand

visi

tor

arriv

als

at IC

AS

A

offices.

5.6.1.ReceptionManual

Impr

oved

pro

cess

Impr

oved

pro

cess

To b

e im

plem

ente

d in

con

junc

tion

with

the

revi

sed

and

appr

oved

tele

phon

e

polic

y.

5.7.

Aw

aren

ess

initi

ativ

e

by A

dmin

sta

ff to

inte

rnal

ly

publ

icis

e IC

AS

A p

roje

cts

and

deve

lopm

ents

.

5.7.

1 In

tern

al In

form

atio

n

Dire

ctor

y of

ICA

SA

Ser

vice

s

Dire

ctor

y of

ICA

SA

serv

ices

Dire

ctor

y of

ICA

SA

ser

vice

s

To b

e im

plem

ente

d in

con

junc

tion

with

the

revi

sed

and

appr

oved

tele

phon

e

polic

y.

83

Section 4A

DM

INIS

TR

AT

ION

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r S

trat

egic

go

al:

Exe

cuti

ng s

ervi

ce d

eliv

ery

effi

cien

tly

and

eff

ecti

vely

Op

erat

iona

l go

al:

Ens

ure

effe

ctiv

e m

oni

tori

ng o

f d

eliv

ery

and

per

form

ance

6.Improve

adm

inis

trat

ion

ofSecurityRisk

Man

agem

ent.

6.1.Ensuringadequate

phys

ical

mea

sure

s fo

r

prev

entin

g un

auth

oris

ed

entr

y to

pro

tect

hum

an

reso

urce

s, a

sset

s, a

nd

info

rmat

ion.

6.1.1.Protectionservices

plan

Pro

tect

ion

serv

ices

polic

y

Pro

tect

ion

serv

ices

pol

icy

Pol

icy

subm

itted

to N

IA fo

r ve

ttin

g.

Wor

ksho

ps to

be

cond

ucte

d on

ce th

e

polic

y is

app

rove

d.

6.1.2.Physicalsecurity

reso

urce

s, s

ecur

ity s

afet

y

and

surv

eilla

nce

syst

ems.

Mon

itorin

g re

port

sM

onito

ring

repo

rts

Mon

thly

repo

rts

avai

labl

e. S

urve

illanc

e

cam

eras

mon

itorin

g th

e riv

er s

ide

are

func

tiona

l, el

ectr

ic fe

nce

has

been

upgr

aded

, add

ition

al s

ecur

ity li

ghts

inst

alle

d, m

otio

n de

tect

ors

and

sire

n

inst

alle

d.

6.2.Im

provecontingency

and

emer

genc

y pl

anni

ng a

t

allICASAoffices

6.2.1.Publishedem

ergency

and

evac

uatio

n pl

ans

Con

tinge

ncy

Pla

nC

ontin

genc

y P

lan

OHSconsultantapp

ointed.

6.2.2.Emergencyevacuation

drills

Em

erge

ncy

drills

Em

erge

ncy

drills

OHSconsultantapp

ointed.

6.3.Conductphysical

secu

rity

asse

ssm

ent t

o

iden

tify

and

corr

ect s

ecur

ity

risks

6.3.1.Securityrisk

identificationplanrepo

rts

Reportand

reco

mm

enda

tion

plan

Reportand

reco

mm

enda

tion

plan

Reportcom

piledandavailable.

6.4.Regulartechnical

secu

rity

asse

ssm

ents

on

equi

pmen

t and

pro

cedu

res

6.4.1.Monthlyrepo

rts

Reportand

reco

mm

enda

tions

Reportand

reco

mm

enda

tions

Mon

thly

ris

k as

sess

men

t rep

orts

avai

labl

e.

6.5.Benchmarkingof

secu

rity

proc

edur

es in

line

with

legi

slat

ion

and

best

prac

tices

6.5.1.Quarterlyrepo

rts

Reportand

reco

mm

enda

tions

Reportand

reco

mm

enda

tions

Sec

urity

requ

irem

ents

for

new

pre

mis

es

in C

ape

Tow

n an

d D

urba

n av

aila

ble.

84

AD

MIN

IST

RA

TIO

N D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

6.Improve

adm

inis

trat

ion

ofSecurityRisk

Man

agem

ent

(con

tinue

d).

6.6.Strategicmeasuresfor

dete

ctin

g an

d pr

even

ting

any

thre

at to

the

phys

ical

envi

ronm

ent o

f IC

AS

A.

6.6.1.Specialisthum

an

reso

urce

s on

site

.

Sec

urity

Dep

artm

ent

reco

mm

enda

tions

Sec

urity

Dep

artm

ent

reco

mm

enda

tions

Adm

in s

taff

requ

irem

ents

/pro

posa

l

subm

ittedto

HR(controlro

omofficer,

OHSoffice,K

eyCustodian,etc).

6.6.2.Staffaw

areness

prog

ram

mes

Sec

urity

pre

sent

atio

nsS

ecur

ity

pres

enta

tions

Adm

in s

taff

requ

irem

ents

/pro

posa

l

subm

ittedto

HR(controlro

omofficer,

OHSoffice,K

eyCustodian,etc).

6.6.3.Quarterlymeetings

with

law

enf

orce

men

t

agen

cies

(NIA

, SA

PS

, etc

).

Inte

ract

ion

repo

rts

Inte

ract

ion

repo

rts

Regularengagem

entw

ithlaw

enfo

rcem

ent a

genc

ies

in p

lace

.

6.7.Im

provePersonnel

secu

rity.

6.7.1.Personnelvetting

dire

ctiv

e

Dire

ctiv

eD

irect

ive

Dire

ctiv

e su

bmitt

ed to

Leg

al fo

r ve

ttin

g.

6.7.2.NIAvettingofstaffin

stra

tegi

c po

sitio

ns.

Z204form

scompleted

Z204form

s

com

plet

ed

Sec

urity

Cle

aran

ce fo

rms

avai

labl

e fo

r

vett

ing.

6.8.ProtectionofIC

ASA

Executives/Officials

trav

ellin

g ab

road

.

6.8.1.Im

plem

entation

prog

ram

me

of M

inim

um

Info

rmat

ion

Sec

urity

Sta

ndar

ds (M

ISS

).

Aw

aren

ess

prog

ram

Aw

aren

ess

prog

ram

Lack

of s

taff

capa

city

.

6.9.Im

proveITsecurityby

wor

king

with

IT d

epar

tmen

t

to p

rovi

de c

ost-

effe

ctiv

e

solu

tions

.

6.9.1.Monthlysecurity

mee

tings

with

IT d

epar

tmen

t.

Mee

ting

min

utes

Mee

ting

min

utes

No

mee

tings

hel

d du

e to

lack

of s

taff

capa

city

.

6.10.ImproveICASA

com

mun

icat

ions

sec

urity

syst

ems.

6.10.1.C

OMSECReport

CO

MS

EC

repo

rtC

OM

SE

C re

port

No

actio

n pl

anne

d.

6.11.D

evelop

mento

f

crite

ria a

nd p

roce

sses

for

Info

rmat

ion

Sec

urity

Classification.

6.11.1.InformationSecurity

Classificationsrepo

rt

Classificationcriteria

Classification

crite

ria

Dra

ft cr

iteria

dev

elop

ed.

6.11.2.InformationSecurity

ClassificationWorkshop

Com

mun

icat

ion

wor

ksho

p

Com

mun

icat

ion

wor

ksho

p

Dra

ft cr

iteria

dev

elop

ed.

85

Section 4A

DM

INIS

TR

AT

ION

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r S

trat

egic

Go

al:

Exe

cuti

ng S

ervi

ce D

eliv

ery

Effi

cien

tly

and

Eff

ecti

vely

Op

erat

iona

l Go

al:

Ens

ure

effe

ctiv

e m

oni

tori

ng o

f d

eliv

ery

and

per

form

ance

7.

Impr

ovem

ent

in m

anag

emen

t of

OccupationalH

ealth

andSafety(OHS)

mat

ters

.

7.1.

Com

plia

nce

to

legi

slat

ive

requ

irem

ents

for

OHSstandards.

7.1.

1.

Pol

icie

s an

d

proc

edur

es

Pol

icie

s an

d

proc

edur

es

OHSconsultantapp

ointed.

· S

afet

y co

mm

ittee

s

·H&Strainingprogram

mes

· S

afet

y re

pres

enta

tives

· E

mer

genc

y as

sem

bly

poin

ts a

nd s

igna

ge

7.2.Regularrepo

rtingof

OHSmattersandincidents,

and

staf

f aw

aren

ess

initi

ativ

es.

7.2.1.QuarterlyOHSaudits

Aud

it re

port

Aud

it re

port

OHSconsultantapp

ointed.

7.2.2.OHSincidentrepo

rts

Inve

stig

atio

n re

port

sIn

vest

igat

ion

repo

rts

Inci

dent

s re

port

ed a

vaila

ble.

7.2.3.MonthlyReport

HSCrepo

rtHSCrepo

rtQ

uart

erly

mee

ting

held

. Mon

thly

repo

rts

avai

labl

e.

7.2.4.Com

municationof

safe

ty ti

ps in

iNew

s

iNew

s in

form

atio

niN

ews

info

rmat

ion

Saf

ety

tips

are

dist

ribut

ed v

ia iN

ews.

7.3.

Ens

ure

emer

genc

y

evac

uatio

n pr

ogra

mm

e an

d

safe

ty d

rills

in a

ll re

gion

s.

7.3.

1. E

vacu

atio

n

proc

edur

es

Pro

cedu

res

docu

men

tP

roce

dure

s

docu

men

t

OHSconsultantapp

ointedandworking

on p

roce

dure

s.

7.3.

2. S

ick

bay

and

stre

tche

rs a

vaila

ble

AvailabilityofH&S

equi

pmen

t

AvailabilityofH&S

equi

pmen

t

Safety/fireequipm

entavailableand

serv

iced

.S

trat

egic

go

al:

Exe

cuti

ng s

ervi

ce d

eliv

ery

effi

cien

tly

and

eff

ecti

vely

Op

erat

iona

l go

al:

Des

ign

& im

ple

men

t m

anag

emen

t re

po

rtin

g p

roce

ss t

o e

nsur

e al

ignm

ent

and

op

tim

isat

ion

of

pro

ject

s an

d p

eop

le

8.

Con

stan

tly

impr

ove

the

prov

isio

n

of p

rofe

ssio

nal

Adm

inis

trat

ion

Sup

port

Ser

vice

s.

8.1.

Ens

ure

effe

ctiv

e

syst

ems,

adm

inis

trat

ion

busi

ness

pro

cess

es a

nd

cont

rols

in p

lace

in a

ll

regionaloffices.

8.1.

1. A

dmin

istr

atio

n

busi

ness

sys

tem

s, p

roce

sses

and

proc

edur

es

Pro

cedu

res

docu

men

ts

Pro

cedu

res

docu

men

ts

Pro

cedu

res

docu

men

t app

rove

d an

d

avai

labl

e.

8.1.2.Reviewsofsystem

proc

esse

s

Review

reco

mm

enda

tions

Review

reco

mm

enda

tions

Pro

cedu

res

docu

men

t app

rove

d an

d

avai

labl

e.

8.2.

Ens

ure

that

all

rele

vant

polic

ies

and

proc

edur

es

are

in li

ne w

ith b

est

busi

ness

pra

ctic

e as

wel

l as

legi

slat

ive

requ

irem

ents

.

8.2.1.RecordsManagem

ent

Pol

icy

and

proc

edur

es

docu

men

tatio

n

Pol

icy

and

proc

edur

es

docu

men

tatio

n

Pro

cedu

res

docu

men

t app

rove

d an

d

avai

labl

e.

8.2.

2. A

sset

man

agem

ent

Not

don

e in

four

th q

uart

er.

8.2.

3. F

leet

tran

spor

tatio

nIn

tern

al w

orks

hops

con

duct

ed w

ithin

Adm

inis

trat

ion.

86

AD

MIN

IST

RA

TIO

N D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

8.

Con

stan

tly

impr

ove

the

prov

isio

n

of p

rofe

ssio

nal

Adm

inis

trat

ion

Sup

port

Ser

vice

s

(con

tinue

d).

8.2.4.Facilitiesmanagem

ent

Adm

in p

roce

dure

s m

anua

l ava

ilabl

e.

8.2.

5. S

ecur

ity m

anag

emen

tOHSconsultantapp

ointedandworking

on p

olic

ies

and

proc

edur

es.

8.2.6.OccupationalH

ealth

and

Saf

ety

OHSconsultantapp

ointedandworking

on p

olic

ies

and

proc

edur

es.

8.3.

Dev

elop

men

t of a

n

Adm

inis

trat

ion

Sup

port

Ser

vice

s C

hart

er.

8.3.

1. S

ervi

ce C

hart

er a

nd

SLA

s

Cha

rter

doc

umen

tC

hart

er d

ocum

ent

No

activ

ity p

lann

ed in

four

th q

uart

er.

8.4.Optimum

utilisationof

availableskillsandfulfilment

ofjobcompetencyprofiles.

8.4.1.Perform

ance

Man

agem

ent S

yste

m (P

MS

)

cont

ract

s

PM

S c

ontr

acts

PM

S c

ontr

acts

PMSschedulessubmittedto

HR.

8.4.2.PMSresults

PM

S re

sults

PM

S re

sults

PMSschedulessubmittedto

HR.

8.4.3.Adm

instaff

deve

lopm

ent a

nd s

ucce

ssio

n

plan

Staffingp

lan

Staffingp

lan

Sta

ff in

divi

dual

dev

elop

men

t pla

ns

subm

ittedto

HR.

Str

ateg

ic g

oal

: E

xecu

ting

ser

vice

del

iver

y ef

fici

entl

y an

d e

ffec

tive

lyO

per

atio

nal g

oal

: D

esig

n an

d im

ple

men

t m

anag

emen

t re

po

rtin

g p

roce

ss t

o e

nsur

e al

ignm

ent

and

op

tim

isat

ion

of

pro

ject

s an

d p

eop

le

9.

Impr

ove

man

agem

ent o

f

Adm

inis

trat

ion

Sup

port

Ser

vice

s

Fina

ncia

l Env

ironm

ent.

9.1.

Bud

get a

ccor

ding

to

ICA

SA

bus

ines

s pl

an fo

r

2009

/10.

9.1.

1. B

usin

ess

Pla

n B

usin

ess

Pla

nB

usin

ess

Pla

nB

usin

ess

Pla

n pr

ogre

ss re

view

ed

quar

terly

.

9.1.

2. A

ppro

ved

budg

et

App

rove

d bu

dget

App

rove

d B

udge

tA

dmin

bud

get h

as b

een

appr

oved

by

Fina

nce.

9.1.

3. E

xpen

ditu

re re

port

Fina

nce

repo

rtFi

nanc

e re

port

Bud

get r

epor

t rec

eive

d m

onth

ly.

9.2.

Impl

emen

tatio

n of

proj

ects

with

in a

ppro

ved

budg

et.

9.2.

1. P

roje

ct p

lans

D

etai

led

proj

ect p

lan

Det

aile

d P

roje

ct

Pla

n

Four

th q

uart

er p

roje

cts

appr

oved

.

9.2.

2. P

roje

ct s

ched

ule

Mile

ston

esM

ilest

ones

Pro

ject

pla

ns in

clud

e in

MS

Pro

ject

.

9.2.

3. B

udge

tFi

nanc

e re

port

Fina

nce

repo

rtVa

rianc

e ex

pend

iture

mon

itore

d

mon

thly.

9.3.

Enh

ance

men

t of

inte

rnal

con

trol

s an

d

financialawareness.

9.3.

1. M

onth

ly re

port

sG

M m

onth

ly re

port

GM

Mon

thly

repo

rt

One

-on-

one

mee

tings

with

CE

O.

87

Section 4IN

FOR

MA

TIO

N T

EC

HN

OLO

GY

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r S

trat

egic

go

al:

Exe

cuti

ng s

ervi

ce d

eliv

ery

effi

cien

tly

and

eff

ecti

vely

Op

erat

iona

l go

al:

Em

po

wer

the

Aut

hori

ty

1. D

evel

opm

ent o

f a

Mas

ter

Sys

tem

s P

lan

(MS

P).

1.1.

Thr

ee-y

ear

road

map

for

IT.

1.1.

1. M

SP

for

ICA

SA

Str

ateg

ic d

ocum

ent

depi

ctin

g th

e ro

adm

ap

with

tim

elin

es o

f IT

Str

ateg

y.

Str

ateg

ic

docu

men

t

depi

ctin

g th

e

road

map

with

timel

ines

of I

T

Str

ateg

y.

Aw

arde

d to

KP

MG

.

Projectonlycommencedon24February

2010

and

cou

ld n

ot b

e co

mpl

eted

in th

e

financialyear.

As-

is IT

Blu

eprin

t and

As-

is B

usin

ess

Blu

eprin

t com

plet

ed.

Full

varia

nce

amou

nt to

be

paid

to K

PM

G

on a

chie

vem

ent o

f mile

ston

es a

s pe

r S

LA.

2. Im

plem

enta

tion

ofanimprovedERP

syst

em.

2.1.

Sel

ectio

n an

d ph

ased

rolloutofanew

ERPsystem.

2.1.

1. Y

early

pla

n

inrespecto

fERP

solu

tion.

SelectionofanERP

syst

em fr

om o

ne

of S

AP,

Mic

roso

ft

Dyn

amix

, JD

E o

r

Ora

cle

eBus

ines

s.

Pur

chas

ing

of s

oftw

are

licen

ces.

Sel

ectio

n of

an

ERPsystem

from

one

of

SA

P, M

icro

soft

Dyn

amix

,

JDE

or

Ora

cle

eBus

ines

s.

Pur

chas

ing

of

softw

are

licen

ces.

Eva

luat

ion

of a

ll fu

nctio

nal m

odul

es h

ave

been

com

plet

ed.

Vend

or p

rese

ntat

ion

held

whe

re e

ach

vend

or h

ad to

pre

sent

thei

r so

lutio

n to

the

eval

uatio

n te

am.

A d

ecis

ion

on p

rodu

ct s

elec

tion

coul

d no

t

be m

ade

until

the

IT M

aste

r S

ytem

s P

lan

(MS

P) i

nves

tigat

ions

wer

e co

mpl

eted

.

3. S

uppo

rt a

nd

enha

nce

AllD

ata

appl

icat

ion.

3.1.

To

repl

ace

ad h

oc

appl

icat

ions

(not

par

t of

ERP)toresideonMicrosoft

Sha

reP

oint

pla

tform

.

3.1.

1. A

ll-D

ata

appl

icat

ion

mig

rate

d

to M

S S

hare

Poi

nt.

Mic

roso

ft S

hare

Poi

ntM

icro

soft

Sha

reP

oint

Pro

ject

com

plet

ed.

Four

mod

ules

mig

rate

d fro

m A

cces

s to

Sha

reP

oint

.

88

INFO

RM

AT

ION

TE

CH

NO

LOG

Y D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

4.Integrateddebtor

man

agem

ent

4.1.integrationofSpectrum

intoERPforbilling

4.1.1.Spectrumfees

bille

d fro

m J

DE

Sof

twar

e In

terfa

ceS

oftw

are

Inte

rface

Pro

ject

in p

rogr

ess.

ConfigurationofJDEandtakeontemplates

on J

DE

hav

e be

en c

ompl

eted

. Cus

tom

er

Masterfileextractedfro

mSpectrum.

Take

on

tran

sact

iona

l dat

a fro

m 0

1-20

09

extr

acte

d fro

m S

pect

rum

for

mig

ratio

n

to J

DE

. Pro

ject

team

cur

rent

ly v

erify

ing

open

ing

bala

nces

.

Pro

ject

cou

ld n

ot b

e co

mpl

eted

in ti

me

due

to p

oor

qual

ity o

f dat

a th

at h

ad to

be

“cle

aned

” be

fore

mig

ratio

n.

5. C

entr

al N

umbe

ring

Dat

abas

e

5.1.

Pub

lic a

cces

s to

num

berin

g da

taba

se o

ff th

e

ICA

SA

web

site

5.1.

1. C

entr

al

num

berin

g da

taba

se

in IC

AS

A w

ebsi

te

Web

site

acc

ess

Web

site

acc

ess

Eva

luat

ions

and

reco

mm

enda

tions

com

plet

ed. S

ubm

itted

to B

AC

for

appr

oval

.

Tim

elin

es n

ot a

chie

ved

due

to u

nava

ilabi

lty

of k

ey s

taff

durin

g sc

hedu

led

eval

uatio

n

perio

d.

6.Records

Man

agem

ent S

yste

m

6.1.Provisionofadocum

ent

man

agem

ent s

yste

m (D

MS

)

6.1.1.Docum

ent

man

agem

ent s

yste

m

for

Libr

ary

serv

ices

Onl

ine

arch

ivin

gO

nlin

e ar

chiv

ing

SIT

A c

ontr

act e

xpire

d.

SC

M h

ad to

sub

mitt

ed o

n cl

osed

tend

er

to s

ame

supp

liers

as

on S

ITA

tran

sver

sal

contract(closed26

February).

Eva

luat

ion

com

plet

e aw

aitin

g B

AC

app

rova

l

to a

war

d th

e B

ID.

Pro

ject

not

com

plet

ed d

ue to

tim

e ta

ken

in

compilingtheTerm

sofReference.

89

Section 4IN

FOR

MA

TIO

N T

EC

HN

OLO

GY

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

7. In

tegr

ated

lice

nsin

g

data

base

7.1.

Impl

emen

tatio

n of

an

inte

grat

ed li

cens

ing

data

base

,

espe

cial

ly C

lass

Lic

ence

s,

with

in J

DE

.

7.1.

1. C

lass

Lic

ense

s

data

base

in J

DE

Integrateworkflow

of C

lass

Lic

ence

proc

ess.

Inte

grat

e

workflow

ofC

lass

Lice

nce

pro

cess

.

In p

rogr

ess.

Bei

ng d

evel

oped

on

JDE

sim

ulta

neou

sly

with

Spe

ctru

m D

ebto

rs M

igra

tion

proj

ect.

Pro

ject

not

com

plet

e as

prio

rity

was

giv

en

to th

e m

igra

tion

of S

pect

rum

deb

tors

ont

o

JDE

.S

trat

egic

go

al:

Exe

cuti

ng s

ervi

ce d

eliv

ery

effi

cien

tly

and

eff

ecti

vely

Op

erat

iona

l go

al:

Imp

rove

cus

tom

er s

ervi

ce

8. Im

prov

e cu

stom

er

serv

ice.

8.1.

Incr

ease

ban

dwid

th to

the

inte

rnet

and

from

regi

onal

officesto

HeadOffice

8.1.

1. 2

MB

inte

rnet

acce

ss fo

r IC

AS

A

(Apex:780K)

Eig

ht M

onth

ly re

port

s

of u

tilis

atio

n an

d

resp

onse

tim

es.

Eig

ht M

onth

ly

repo

rts

of

utilis

atio

n an

d

resp

onse

tim

es.

New

2 M

eg m

icro

wav

e lin

k im

plem

ente

d

fromHeadOfficeto

theinternetvia

Voda

com

Bus

ines

s.

New

512

K M

icro

wav

e lin

ks im

plem

ente

d

from

all

site

s to

Vod

acom

Bus

ines

s.

This

pro

ject

was

com

mis

sion

ed la

te in

the

financialyear.Thisisanop

examountthat

is p

aid

mon

thly.

Var

ianc

e w

ill no

t be

carr

ied

over

.

90

INFO

RM

AT

ION

TE

CH

NO

LOG

Y D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

8. Im

prov

e cu

stom

er

serv

ice

(con

tinue

d).

8.2.

Ban

dwid

th o

ptim

isat

ion

to

Regionaloffices

(car

ry o

ver

from

200

8/09

).

8.2.

1. B

andw

idth

optim

isat

ion

hard

war

e

and

softw

are

Six

mon

thly

repo

rts

show

ing

resp

onse

times

and

any

pote

ntia

l bot

tlene

cks

Six

mon

thly

repo

rts

show

ing

resp

onse

tim

es

and

any

pote

ntia

l

bott

lene

cks

A p

ilot t

rial o

f fou

r pr

oduc

ts w

as d

one

by

the

IT te

am. T

he p

refe

rred

sol

utio

n w

as

Riverbed.Atenderwasissued.R

espo

nses

wer

e ev

alua

ted

and

arep

ort s

ent t

o to

SC

M. N

ot a

ppro

ved

at B

AC

due

to s

tric

t

qual

ifyin

g cr

iteria

.

SC

M re

-issu

ed te

nder

. Eva

luat

ions

redo

ne

and

new

reco

mm

enda

tions

sub

mitt

ed to

SC

M.

Varia

nce

carr

ied

over

to n

ew y

ear.

Pro

ject

not

com

plet

ed d

ue to

ext

ende

d

pilo

t tes

ting

and

the

re-is

suin

g of

the

tend

er.

8.3.

One

poi

nt o

f con

tact

8.

3.1.

Cal

l Cen

tre

Sol

utio

n

Cal

l Cen

tre

Infra

stru

ctur

e ro

llout

Cal

l Cen

tre

Infra

stru

ctur

e

rollo

ut

Offsite6-m

onthpiloto

fCallC

entrewas

reco

mm

ende

d by

the

IT re

view

com

mitt

ee.

Dis

cuss

ions

wer

e he

ld w

ith A

rivia

.kom

and

a pr

esen

tatio

n w

as m

ade

to E

xco.

Pro

ject

not

com

plet

ed a

s th

e B

AC

did

not

appr

ove

the

reco

mm

ende

d so

lutio

n an

d

anop

en te

nder

had

to b

e ad

vert

ised

.

8.4.Providegreaterportability

8.4.1.Laptopsfor

mob

ileusers(45

newusersand60

repl

acem

ents

)

Num

ber

105

Com

plet

ed.

Lapt

ops

proc

ured

as

and

whe

n re

quire

d.

91

Section 4IN

FOR

MA

TIO

N T

EC

HN

OLO

GY

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

8.5.

Impl

emen

t cen

tral

por

tal

for

all I

CA

SA

em

ploy

ees

(Intr

anet

).

8.5.

1. In

tran

etIn

tran

et im

plem

ente

dIn

tran

et

impl

emen

ted

RFQ

wasawardedtoDatacentrixto

assist

with

the

upgr

ade

of th

e in

tran

et s

ite.

Dev

elop

men

t has

bee

n co

mpl

eted

for

thre

e

divi

sion

s.

The

syst

em c

an o

nly

be im

plem

ente

d w

ith

the

Mic

roso

ft ro

ll-ou

t pro

ject

pla

nned

for

May

201

0.

8.6.Im

provedIC

ASAwebsite.

8.6.1.New

website

Impl

emen

tatio

nIm

plem

enta

tion

Com

plet

ed.

The

2010

Wor

ld C

up s

pect

rum

and

type

appr

oval

ele

ctro

nic

appl

icat

ions

hav

e be

en

impl

emen

ted

on th

e w

ebsi

te.

Als

o bu

ilt in

abi

lity

to re

ceiv

e se

cure

cre

dit

card

pay

men

ts d

urin

g ap

plic

atio

n pr

oces

s.S

trat

egic

go

al:

Exe

cuti

ng s

ervi

ce d

eliv

ery

effi

cien

tly

and

eff

ecti

vely

Op

erat

iona

l go

al:

Min

imis

e ri

sks

9.Reduceriskto

orga

nisa

tion.

9.1.

Impl

emen

t an

off-

site

DisasterRecoverysolution.

9.1.

1. O

ffsite

ICA

SA

syst

em a

cces

s.

(Opex480K

)

Sig

ned

cont

ract

Ann

ual r

epor

t to

Aud

it

ofDRoffsitetesting.

Sig

ned

cont

ract

Ann

ual r

epor

t

toAuditofDR

offs

ite te

stin

g.

Diff

eren

t opt

ions

eva

luat

ed a

nd

reco

mm

enda

tions

mad

e to

SC

M.

SC

M c

ondu

cted

pric

e ne

gotia

tions

with

reco

mm

ende

d se

rvic

e pr

ovid

er.

App

rove

d by

BA

C.

Due

to h

igh

cost

, nee

ds to

be

appr

oved

by

Cou

ncil.

A d

elay

in p

rice

nego

tiatio

ns d

id

not m

ake

it po

ssib

le to

com

plet

e th

e pr

ojec

t

inthefinancialyear.

Varia

nce

amou

nt c

arrie

d ov

er to

new

financialyear.

92

INFO

RM

AT

ION

TE

CH

NO

LOG

Y D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

9.Reducerisk

to o

rgan

isat

ion

(con

tinue

d).

9.2.

Impl

emen

t a n

ew S

AN

and

back

up s

olut

ion.

9.2.

1. S

AN

and

back

up s

olut

ion

Rob

uststorageof

ICA

SA

dat

a.

Qua

rter

ly re

port

of

back

up s

tatu

s.

Thre

e re

port

sN

ew S

AN

and

bac

kup

infra

stru

ctur

e

implem

entedatHeadOfficeaswellas

regionaloffices.AllMicrosoftserversare

aces

sing

thei

r da

ta o

n th

e ne

w S

AN

. A

few

Nov

ell s

erve

rs w

ill be

cut

ove

r in

May

(aw

aitin

g de

liver

y on

new

ser

vers

).

Varia

nce

carr

ied

over

to n

ew y

ear.

9.3.Im

plem

entaDRplanfor

IT.

9.3.

1. B

usin

ess

Con

tinui

ty P

lan

(BC

P)

App

rove

d B

CP

for

IT

at IC

AS

A.

App

rove

d B

CP

for

IT a

t IC

AS

A

Vario

us te

nder

s ev

alua

ted.

Recom

mendationssenttoSCM.

App

rove

d by

BA

C la

st w

eek

of M

arch

201

0.

Varia

nce

amou

nt c

arrie

d ov

er to

new

financialyear.

9.4.Im

plem

entM

imecastto

conformto

five-yeararchiving

requ

irem

ent

9.4.1.eMailarchiving

Pla

nP

lan

Com

plet

ed.

10-y

ear

arch

ive

in p

lace

for

all e

xter

nal

emai

ls in

to a

nd fr

om IC

AS

A.

9.5.

Impl

emen

tatio

n of

netw

ork

secu

rity

9.5.

1. N

etw

ork

prot

ectio

n

Eig

ht A

lert

s an

d

mon

thly

repo

rts

of a

ny

exte

rnal

una

utho

rised

entr

y to

ICA

SA

inte

rnal

netw

ork.

Eig

ht A

lert

s an

d

mon

thly

repo

rts

of a

ny e

xter

nal

unau

thor

ised

entr

y to

ICA

SA

inte

rnal

net

wor

k.

Com

plet

ed.

Impl

emen

ted

Mic

roso

ft S

yste

m C

entr

e

Ope

ratio

ns M

anag

er w

ith M

icro

soft

roll-

out

proj

ect.

9.6.Im

plem

entanantivirus

softw

are

solu

tion.

9.6.1.1.Secure,

up-t

o-da

te p

rote

ctio

n

of P

Cs,

lapt

ops

and

serv

ers.

Sof

twar

eS

oftw

are

Com

plet

ed.

ES

ET

rolle

d ou

t to

all w

orks

tatio

ns a

nd

serv

ers.

93

Section 4IN

FOR

MA

TIO

N T

EC

HN

OLO

GY

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r S

trat

egic

go

al:

Exe

cuti

ng s

ervi

ce d

eliv

ery

effi

cien

tly

and

eff

ecti

vely

Op

erat

iona

l go

al:

Pro

vid

e ro

bus

t IT

and

ser

vice

s

10. M

igra

tion

of N

ovel

l

to M

icro

soft

(car

ry o

ver

from

2008

/09)

.

10.1

. Mic

roso

ft ne

twor

k

auth

entic

atio

n an

d ro

ll ou

t of

MS

Exc

hang

e an

d O

utlo

ok.

10.1

.1. M

icro

soft

Net

wor

k an

d M

S

Exc

hang

e (O

utlo

ok)

Impl

emen

tatio

nIm

plem

enta

tion

AtendMarch,7

5%ofallheadofficeusers

mig

rate

d fro

m N

ovel

l to

Mic

roso

ft.

11. M

aint

enan

ce o

n

RightFax

(car

ry o

ver

from

2008

/09)

.

11.1

. Ong

oing

sup

port

on

RightFax.

11.1

.1. S

LAFi

ve S

igne

d S

LA /

Con

trac

ts

Bi-m

onth

ly h

ealth

chec

k an

d re

port

Five

Sig

ned

SLA

/

cont

ract

s

Bi-m

onth

ly h

ealth

chec

k an

d re

port

Com

plet

ed.

Thre

e ye

ar S

LA s

igne

d of

f with

Gal

don

Dat

a.

12. P

refe

rred

sup

plie

d

for

data

cab

ling

(car

ry o

ver

from

2008

/09)

.

12.1

. SLA

with

thre

e w

orki

ng

days

turn

arou

nd ti

me

on a

ll

new

requ

ests

for

new

poi

nts.

12.1

.1. S

LA11

sig

ned

SLA

/

cont

ract

s

Mon

thly

repo

rt

show

ing

calls

logg

ed

mea

sure

d ag

ains

t

SLA

.

11 s

igne

d S

LA /

cont

ract

s

Mon

thly

repo

rt

show

ing

calls

logg

ed m

easu

red

agai

nst S

LA.

Com

plet

ed.

Thre

e ye

ar S

LA s

igne

d of

f with

Byt

es

Tech

nolo

gy.

13.R

emotedesktop

supp

ort

13.1

. Im

plem

enta

tion

of

softw

are

tool

to p

rovi

de re

mot

e

desk

top

supp

ort (

inte

rnal

ly a

s

wel

l as

to re

gion

s).

13.1.1.2

5%ofcalls

to h

elpd

esk

reso

lved

via

rem

ote

desk

top.

6monthlyrepo

rts

6Monthly

Reports

Com

plet

ed.

Impl

emen

ted

Mic

roso

ft S

yste

m C

entr

e

Ope

ratio

ns M

anag

er w

ith M

icro

soft

roll-

out

proj

ect.

14.H

elpDeskSystem

14.1.Implem

entanew

help

desk

sys

tem

.

14.1.1.Trackingand

Reportingofhelp

desk

cal

ls.

10 m

onth

ly re

port

s

show

ing

activ

ity

by te

chni

cian

(cal

ls

logg

ed v

s. c

lose

d vs

.

SLA

).

10 m

onth

ly

repo

rts

show

ing

activ

ity b

y

tech

nici

an (c

alls

logg

ed v

s. c

lose

d

vs. S

LA).

Com

plet

ed.

Cur

rent

sys

tem

upg

rade

d. N

o ne

ed fo

r ne

w

syst

em.

94

INFO

RM

AT

ION

TE

CH

NO

LOG

Y D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

15. N

etw

ork

mon

itorin

g

15.1

. Im

plem

enta

tion

of n

ew

mon

itorin

g to

ol fo

r fa

ster

resp

onse

.

15.1

.1. D

ashb

oard

show

ing

real

-tim

e

netw

ork

stat

us.

Aut

omat

ic S

MS

/

emailnotifications.

6MonthlyReports

6Monthly

Reports

Com

plet

ed.

Impl

emen

ted

Mic

roso

ft S

yste

m C

entr

e

Ope

ratio

ns M

anag

er w

ith M

icro

soft

roll-

out

proj

ect.

16.C

onsolidationof

serv

ers

16.1.E

asiermanagem

ento

f

serv

ers.

16.1.N

ewtechnology

to re

plac

e en

d-of

-life

serv

ers.

Impl

emen

tatio

nIm

plem

enta

tion

Eva

luat

ions

com

plet

ed.

Recom

mendationssenttoSCM.

App

rove

d by

BA

C m

id-M

arch

201

0.

Pro

ject

sta

rted

to la

te to

ens

ure

com

plet

ion

inthefinancialyear.

HU

MA

N R

ES

OU

RC

E D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f m

easu

rem

ent

Targ

et

2009

/10

Ove

rall

pro

gre

ss d

urin

g t

he 2

009/

10

fina

ncia

l yea

r S

trat

egic

go

al:

Op

tim

ised

str

uctu

re, l

ead

ersh

ip a

nd c

ultu

re a

ligne

d w

ith

stra

teg

yO

per

atio

nal g

oal

: Im

pro

ved

op

erat

iona

l effi

cien

cy a

nd e

ffec

tive

ness

1.Review,optimise

and

alig

n th

e

orga

nisa

tiona

l

stru

ctur

e in

acco

rdan

ce w

ith th

e

revi

sed

man

date

.

1.1.

Con

duct

an

orga

nisa

tiona

l stu

dy to

review

ICASA’srevised

man

date

(EC

A 2

005)

and

alig

nmen

t of t

he s

truc

ture

.

1.1.

1. Q

ualit

ativ

e an

d

quan

titat

ive

anal

ysis

repo

rt.

Consultants’

reco

mm

enda

tions

repo

rt a

ccep

tabl

e to

Cou

ncil

and

EXC

O.

-50%com

pletionofthe

popu

latio

n of

the

revi

sed

stru

ctur

e.

-Everyemployee’s

statusconfirmedby

lett

er.

-100%

accurate.

Com

pile

repo

rtP

hase

1 re

port

has

bee

n de

liver

ed

and

pres

ente

d to

Exc

o. P

hase

2 of

the

proj

ect i

s un

derw

ay.

REASONFORPARTIALACHIEVEMENT

The

bid

eval

uatio

n pr

oces

s w

as re

vise

d to

verif

y th

e de

cisi

ons

to a

ppoi

nt a

s pe

r C

ounc

il

reso

lutio

n. T

he ti

mef

ram

es w

ere

ther

efor

e

dela

yed

by e

ight

wee

ks.

The

subm

issi

on

ofthefinalrepo

rtwasdeferredtoendMay

2010

.

95

Section 4H

UM

AN

RE

SO

UR

CE

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f m

easu

rem

ent

Targ

et

2009

/10

Ove

rall

pro

gre

ss d

urin

g t

he 2

009/

10

fina

ncia

l yea

r

1.Review,optimise

and

alig

n th

e

orga

nisa

tiona

l

stru

ctur

e in

acco

rdan

ce w

ith

the

revi

sed

man

date

(con

tinue

d).

1.2.

Impl

emen

tatio

n of

a ch

ange

man

agem

ent

stra

tegy

and

com

mun

icat

ion

plan

to e

nsur

e a

succ

essf

ul

stru

ctur

e re

desi

gn p

roce

ss.

1.2.1.Representative

cons

ulta

tion

and

com

mun

icat

ion

stru

ctur

e.

<20%litigationfrom

proc

ess

outc

ome.

Com

pile

repo

rtC

omm

unic

atio

n co

ntin

ues

thro

ugh

inte

ract

ive

com

mun

icat

ion

proc

esse

s le

d by

the

CE

O

andsupp

ortedbytheEmployeeRelations

serv

ice

unit.

REASONFORPARTIALACHIEVEMENT

The

inte

ntio

n to

initi

ate

the

proc

ess

was

communicatedthroughwrittennotification

and

gene

ral s

taff

mee

tings

to a

ll em

ploy

ees

andtheirrepresentatives.HRpropo

sedthe

esta

blis

hmen

t of a

Ste

erin

g C

omm

ittee

and

deci

sion

was

arr

ived

at a

t EXC

O to

est

ablis

h

the

stru

ctur

e a

fter

the

rece

ipt a

nd re

view

of

the

reco

mm

enda

tion

repo

rt to

faci

litat

e th

e

impl

emen

tatio

n ph

ase.

Dis

pute

s w

ith L

abou

r

are

theo

retic

al a

t thi

s st

age

and

have

not

impa

cted

on

the

proc

ess.

2. E

stab

lish

a

colle

ctiv

e le

ader

ship

and

serv

ice

orie

ntat

ion

cultu

re.

2.1.

For

mul

atio

n of

term

s

of re

fere

nce

for

the

serv

ice

prov

ider

tran

sfor

mat

ion

of

the

orga

nisa

tiona

l cul

ture

to

a se

rvic

e-or

ient

ed c

ultu

re.

2.1.

1. C

ultu

re a

nd

lead

ersh

ip m

odel

.

Mod

el to

be

appr

oved

by C

ounc

il/E

XCO

-Train50%

ofleadership

(man

agem

ent a

nd

abov

e).

Report

Mod

el h

as n

ot b

een

deve

lope

d. T

he

deve

lopm

ent o

f the

ICA

SA

lead

ersh

ip m

odel

was

ass

igne

d as

one

of t

he A

ctio

n Le

arni

ng

Pro

ject

s. T

he P

hase

1 E

DP

took

pla

ce in

Mar

ch 2

010.

13

Exe

c m

embe

rs p

artic

ipat

ed.

2.2.

Pre

sent

atio

n of

the

Em

ploy

ee V

alue

Pro

posi

tion

(EV

P) s

urve

y re

sults

to

iden

tify

orga

nisa

tiona

l

beha

viou

ral i

ssue

s.

2.2.1.Report

redr

essi

ng a

reas

of

impr

ovem

ent.

25%ofrequired

revi

sion

s co

mpl

eted

.

Report

SixHRpolicieswererevisedinresponse

toissuesraisedintheEVPresponses:

Tale

nt S

ourc

ing,

DC

, Grie

vanc

e, P

MS

,

JobEvaluation,Rem

unerationandStudy

Ass

ista

nce.

Ind

uctio

n pr

ogra

mm

e w

as

revised,draftHRDstrategy,careerpathing

fram

ewor

k, d

raft

empl

oyee

han

dboo

k an

d S

D

and

EE

com

mitt

ee e

stab

lishe

d.

96

HU

MA

N R

ES

OU

RC

E D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f m

easu

rem

ent

Targ

et

2009

/10

Ove

rall

pro

gre

ss d

urin

g t

he 2

009/

10

fina

ncia

l yea

r S

trat

egic

go

al:

ICA

SA

to

bec

om

e an

em

plo

yer

of

cho

ice

Op

erat

iona

l go

al:

Att

ract

ion

and

ret

enti

on

of

bes

t ta

lent

3.Hum

anResources

Develop

ment(HRD)

stra

tegy

form

ulat

ion

for

effe

ctiv

e ta

lent

man

agem

ent.

3.1.

Enh

ance

men

t of

theHum

anResources

Dev

elop

men

t Str

ateg

y to

supp

ort e

ffect

ive

tale

nt

man

agem

ent.

3.1.1.IntegratedHRD

stra

tegy

100%

ofalljobs

competenceprofiled

-100%

implem

entation

of th

e sp

ecia

list c

aree

r

stre

am

- 10

inte

rns

for

2010

(Fiv

e in

tern

al tr

aine

es a

t

C-L

evel

).

Report

Car

eer

path

fram

ewor

k w

as p

rese

nted

to

REMCOo

n25

February20

10.

DraftHRDstrategyisinplace.

3.2.

Des

ign

a M

ento

ring

and

Coa

chin

g pr

ogra

mm

e fo

r

ICA

SA

.

3.2.

1. M

ento

ring

and

Coa

chin

g P

rogr

amm

e

Trai

n al

l em

ploy

ees

at

Sup

ervi

sory

leve

l and

abov

e.

- A

pro

gram

me

alig

ned

to th

e or

gani

satio

nal

lead

ersh

ip m

odel

and

valu

e sy

stem

.

Report

90%

ofsupervisorsandmanagershave

beentrainedonEQandCoaching.7

0%

of o

pera

tiona

l sta

ff ha

ve b

een

trai

ned

in E

Q

skills

.

4.Talentacquisition

stra

tegy

to e

mpl

oy th

e

right

peo

ple

to b

uild

capa

city

.

4.1.AlignHRpracticesto

an a

ppro

pria

te c

ompe

tenc

e

base

d ta

lent

cap

ital

man

agem

ent f

ram

ewor

k

4.1.1.Com

petence

base

d ta

lent

cap

ital

man

agem

ent

fram

ewor

k

Tota

l tr

ansf

orm

atio

n of

peop

le m

anag

emen

t

prac

tices

by

31 M

arch

2009

.

Report

Com

pete

ncy

asse

ssm

ent a

war

enes

s

wor

ksho

p w

as h

eld

on 1

7 Fe

brua

ry 2

010.

Fiveexternalexpertconsultingfirm

s

pres

ente

d th

eir

prod

ucts

and

met

hodo

logi

es.

Com

pete

ncy

base

d in

terv

iew

ing

tech

niqu

es

have

bee

n in

trod

uced

at m

anag

emen

t lev

els.

4.2.Introd

uctionofbest

prac

tice

recr

uitm

ent s

trat

egy

torecruitcriticalskillsandfill

all a

ctiv

e va

canc

ies.

4.2.1.30%

prog

ress

ion

on

vacancyfilledper

quar

ter f

rom

qua

rter

2.

30%ofallactivated

vaca

ncie

s pe

r qu

arte

r.

30%ofall

activ

ated

vaca

ncie

s pe

r

quar

ter.

55 p

erm

anen

ts a

ppoi

ntm

ents

wer

e m

ade

-104

%againstvacanciesatb

eginningof

financialyear45

tempo

rarypositionswere

filled.

97

Section 4H

UM

AN

RE

SO

UR

CE

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f m

easu

rem

ent

Targ

et

2009

/10

Ove

rall

pro

gre

ss d

urin

g t

he 2

009/

10

fina

ncia

l yea

r S

trat

egic

go

al:

Op

tim

ised

str

uctu

re, l

ead

ersh

ip a

nd c

ultu

re a

ligne

d w

ith

stra

teg

yO

per

atio

nal g

oal

: A

ttra

ctio

n an

d r

eten

tio

n o

f b

est

tale

nt

5.Rem

unerationand

BenefitsStrategy

Reviewforattraction

and

rete

ntio

n of

bes

t

skills

.

5.1.Reviewremunerations

and

rew

ard

prog

ram

mes

for

fair,

equ

itabl

e an

d

com

petit

ive

pay

proc

edur

es.

5.1.1.Rem

uneration

andbenefitrepo

rt.

Allmanagers’

rem

uner

atio

n co

nver

ted

to to

tal c

ost o

f

empl

oym

ent (

TCE

).

- B

ench

mar

ked

mar

ket

rela

ted

rem

uner

atio

n

stru

ctur

e al

igne

d

to o

rgan

isat

iona

l

stra

tegy

.

-ReductionofMedical

Aid

Sch

emes

to th

ree

-Reviewofpensionfund

sche

mes

.

Report

Pro

pose

d re

mun

erat

ion

stra

tegy

was

presentedtoREMCOon25

March201

0.

- A

lexa

nder

For

bes

pres

ente

d th

e be

nchm

ark

repo

rt o

n va

rious

med

ical

aid

sch

emes

to

EXC

O.

- Th

e IB

A P

ensi

on F

und

sche

me

has

been

mergedintotheSAT

RAFund.T

heSAT

RA

Fund

has

cha

nged

nam

e to

ICA

SA

. FS

B

has

appr

oved

the

chan

ges.

The

pen

sion

fund

man

agem

ent c

omm

ittee

has

bee

n

constituted.A

Fhaveconfirmedinwriting

that

Act

uaria

l ser

vice

s w

ill be

pro

vide

d fe

e of

char

ge.

Str

ateg

ic g

oal

: A

per

form

ing

, saf

e an

d d

isci

plin

ed o

rgan

isat

ion

Op

erat

iona

l go

al: A

ccep

tab

le p

erfo

rman

ce le

vels

and

go

od

wo

rkp

lace

mo

rale

6Mitigationof

orga

nisa

tiona

l ris

k.

6.1.Qualificationverification

in a

ll ar

eas

of p

oten

tial r

isk.

6.1.1.Qualification

verificationrepo

rt.

100%

implem

entationat

all l

evel

s.

100%

impl

emen

tatio

n

at a

ll le

vels

.

Verificationofqualificationswasim

plem

ented

dow

n to

C3

leve

l

6.2.Designand

impl

emen

tatio

n of

a

succ

essi

on p

lann

ing

stra

tegy

for

criti

cal p

ositi

ons.

6.2.1.Succession

plan

ning

str

ateg

y at

man

agem

ent l

evel

and

abov

e.

10%im

plem

entationat

man

agem

ent l

evel

and

abov

e.

Dev

elop

men

t

and

impl

emen

tatio

n

Suc

cess

ion

Pla

nnin

g

Str

ateg

y.

Not

ach

ieve

d.

REASONFORNONACHIEVEMENT

The

outc

ome

of th

e or

gani

satio

nal s

truc

ture

review

isexpectedtoconfirmthenearfuture

esta

blis

hmen

t of I

CA

SA

. In

vest

men

t int

o

succ

essi

on p

lann

ing

impe

rativ

es c

an o

nly

be

justifiableoncetheapprop

riatestructurehas

beenconfirmedthroughthereengineering

stud

y cu

rren

tly u

nder

way

.

98

HU

MA

N R

ES

OU

RC

E D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f m

easu

rem

ent

Targ

et

2009

/10

Ove

rall

pro

gre

ss d

urin

g t

he 2

009/

10

fina

ncia

l yea

r

6Mitigationof

organisationalR

isk

(con

tinue

d).

6.3.Effectivediversity

man

agem

ent a

nd le

gal

com

plia

nce.

6.3.1.Threeyear

empl

oym

ent e

quity

plan

.

>2,5%

ofstaff

com

plem

ent s

houl

d be

pers

ons

with

dis

abilit

y.

2,5%

ofstaff

com

plem

ent

shou

ld b

e

pers

ons

with

disa

bilit

y.

Cur

rent

org

anis

atio

nal d

emog

raph

ics

wer

e

tabledattheEE/SDmeeting.Disabilityprofile

iscurrently1.67%

ofpermanentstaff.

7. Im

plem

enta

tion

of s

uppo

rt fo

r th

e

revi

sed

inte

grat

ed

Per

form

ance

Man

agem

ent

Fram

ewor

k (P

MF)

.

7.1.

Enh

ance

men

t and

assi

mila

tion

of th

e pr

inci

pals

and

appl

icat

ion

for

the

new

PM

F.

7.1.1.RevisedPMF.

Reporto

nthe

proficiencyand

appr

opria

tene

ss o

f the

ePer

form

ance

sys

tem

Intr

oduc

e

revi

sed

PM

F.

Qualifiedperform

ancestandardshave

been

incl

uded

in th

e re

vise

d P

erfo

rman

ce

Man

agem

ent

Pol

icy.

The

org

anis

atio

nal B

Sc

has

been

app

rove

d as

an

actio

n le

arni

ng

proj

ect f

or th

e IC

AS

A E

DP

with

GIB

S.

7.2.

Fac

ilitat

e th

e an

nual

empl

oyee

per

form

ance

man

agem

ent c

ycle

.

7.2.

1. A

nnua

l

empl

oyee

perfo

rman

ce

man

agem

ent c

ycle

.

Achieve80%

com

plia

nce

rate

Intr

oduc

e

annu

al

empl

oyee

Fina

l rev

iew

sch

edul

e ha

s be

en e

ndor

sed

by

EXC

O a

nd c

omm

unic

ated

to s

taff.

8.SoundERpractices

for t

he e

stab

lishm

ent

of a

dis

cipl

ined

and

harm

onis

ed

wor

kpla

ce.

8.1.EffectiveHR

com

mun

icat

ion

and

cons

ulta

tive

proc

esse

s

for

co-c

reat

ion

and

good

rela

tions

.

8.1.

1. G

rieva

nce

and

disc

iplin

ary

proceduresandER

wor

ksho

ps.

Grie

vanc

es a

nd D

C

hear

ings

clo

sed

with

in

polic

y tim

efra

mes

and

CC

MA

and

LC

dis

pute

s

by e

xcep

tion

only.

Fina

lise

Grie

vanc

es a

nd

DC

hea

rings

.

Apolicyworkshopwasattendedby6

man

agem

ent s

taff

in M

arch

201

0. IC

AS

A

disc

iplin

ary

and

grie

vanc

e pr

oced

ures

wer

e

revi

sed,

con

sulte

d w

ith a

ll st

akeh

olde

rs a

nd

subm

itted

for

exte

rnal

lega

l rev

iew

. Th

e

budg

etandtimefortheotherERworkshops

wassacrificedfortheprotractednegotiation

proc

ess

that

rem

ains

in a

dis

pute

.

8.2.IntensifyEAPandHIV/

Aid

s st

rate

gy to

incl

ude

man

agem

ent o

f oth

er li

fe

thre

aten

ing

dise

ases

.

8.2.1.EAP,HIV/

Aid

s an

d ot

her

life

thre

aten

ing

dise

ases

stra

tegy

.

23%mem

bership

Pro

vide

sup

-

port

as

mat

ters

aris

e.

Ann

ual r

evie

w m

eetin

g w

as h

eld

with

EA

P

SP

s an

d en

hanc

emen

ts to

the

prog

ram

me

agre

ed u

pon.

99

Section 4H

UM

AN

RE

SO

UR

CE

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f m

easu

rem

ent

Targ

et

2009

/10

Ove

rall

pro

gre

ss d

urin

g t

he 2

009/

10

fina

ncia

l yea

r

9. In

tern

al B

usin

ess

ProcessReviewfor

improvedefficiency

and

effe

ctiv

enes

s

9.1.

Ong

oing

revi

ew o

f

HRoperationalprocesses

to id

entif

y bo

ttle

neck

s,

inefficienciesandlackof

optim

alutilizationofavailable

reso

urce

s an

d re

liabl

e

repo

rts

9.1.

1. S

ervi

ce le

vel

agre

emen

ts

100%

DataIntegrityon

all a

spec

ts o

f wor

k.

- S

LA in

acc

orda

nce

with

set

sta

ndar

ds

forHRpoliciesand

proc

edur

es m

anua

l

Intr

oduc

e

Ser

vice

Lev

el

Agr

eem

ents

Com

prehensiveHRSLA

hasnotbeen

finalised.

- E

SS

is o

pera

tiona

l; le

ave

and

over

time

func

tiona

litie

s ha

ve b

een

activ

ated

.

FIN

AN

CE

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f m

easu

rem

ent

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r S

trat

egic

go

al:

Exe

cuti

ng s

ervi

ce d

eliv

ery

effi

cien

tly

and

eff

ecti

vely

Op

erat

iona

l go

al:

Pro

duc

e fi

nanc

ial i

nfo

rmat

ion

wit

h in

teg

rity

1.Im

provefinancial

syst

ems.

1.1.

Impl

emen

t all

rele

vant

financialrevenuemod

ules.

1.1.1.Revenuemod

ule

for

Spe

ctru

m.

Spe

ctru

m d

istr

ibut

ion

mod

ule

Spe

ctru

m d

istr

ibut

ion

mod

ule

Theconfigurationofthesystem

asper

orig

inal

sco

pe w

as c

ompl

eted

at t

he

end

of M

arch

. It w

as n

ot c

omm

issi

oned

and

test

ed b

efor

e th

e en

d of

the

financialyearbecausethescop

e

was

cha

nged

and

the

data

was

not

tran

sfer

red

as p

lann

ed.

1.1.

2. A

utom

ated

allo

catio

n of

rece

ipts

.

Allo

cate

d re

ceip

tsA

lloca

ted

rece

ipts

Theconfigurationofthesystem

asper

orig

inal

sco

pe w

as c

ompl

eted

at t

he

end

of M

arch

. It w

as n

ot c

omm

issi

oned

and

test

ed b

efor

e th

e en

d of

the

financialyear.

1.1.

3. In

tern

al p

rinte

d

invo

ices

.

ARinvoices

ARinvoices

Theinvoicesconfigurationwas

com

plet

ed, t

este

d an

d co

mm

issi

oned

.

1.2.

Inte

grat

e pa

yrol

l and

financialsystem.

1.2.

1. In

tegr

ated

pay

roll

andfinancialsystem.

Inte

grat

ed s

yste

mIn

tegr

ated

sys

tem

ERPprojectwaspostponedto

the

2011

/12financialyear.

100

FIN

AN

CE

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f m

easu

rem

ent

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

1.Im

provefinancial

syst

ems

(con

tinue

d).

1.3.

Dev

elop

con

trac

t

man

agem

ent f

or a

ccou

nts

paya

ble

(AP

) and

receivables(AR).

1.3.

1. C

ontr

act

man

agem

ent

Aut

omat

ed c

ontr

act

managem

entforAR

and

AP

Aut

omat

ed c

ontr

act

managem

entforAR

and

AP

ERPprojectw

aspostponedto

the

2011

/12financialyear.

1.4.Develop

costing

syst

em.

1.4.1.Costingframew

ork

Fina

ncia

l Cos

ting

syst

em

Fina

ncia

l Cos

ting

syst

em

The

fram

ewor

k w

as c

ompl

eted

.

1.4.2.Costedop

eration

Reporto

foperation

cost

ing

Reporto

foperation

cost

ing

As

at 3

1 M

arch

201

0, c

ostin

g of

the

operationswasat7

0%.

1.5.

Inte

grat

e as

set

syst

em.

1.5.

1. In

tegr

ated

ass

et

regi

ster

Ass

et re

gist

erA

sset

regi

ster

In

terfa

ce o

f MS

Acc

ess

and

JDE

has

been

com

plet

ed.

1.5.

2. In

tegr

ated

ass

et

ledg

er a

nd a

sset

data

base

Inte

grat

ed a

sset

ledg

er

and

asse

t dat

abas

e

Inte

grat

ed a

sset

ledg

er a

nd a

sset

data

base

The

inte

rface

was

don

e on

MS

Acc

ess

and

JDE

.

Str

ateg

ic g

oal

: E

xecu

ting

ser

vice

del

iver

y ef

fici

entl

y an

d e

ffec

tive

lyO

per

atio

nal g

oal

: Im

pro

ve in

tern

al c

ont

rol

2.Im

provefinancial

proc

esse

s,

proc

edur

es, p

olic

ies

and

com

plia

nce

2.1.

Dev

elop

bus

ines

s

proc

ess

2.1.1.Businessworkflow

and

role

s

Det

ail b

usin

ess

proc

ess

Det

ail b

usin

ess

proc

ess

Bus

ines

s pr

oces

ses

wer

e co

mpl

eted

.

Str

ateg

ic g

oal

: E

nhan

ced

ICA

SA

bus

ines

s in

telli

gen

ce, g

ove

rnan

ce a

nd r

epo

rtin

gO

per

atio

nal g

oal

: Fa

irly

sta

ted

fina

ncia

l sta

tem

ents

3. F

airly

sta

ted

asse

ts3.

1. V

erify

ass

et3.

1.1.

Qua

rter

ly a

nd y

ear-

end

asse

t rep

ort

Verificationrepo

rtVerificationrepo

rtVerificationhasbeencom

pletedinthe

regionsandHeadOffice.

3.2.Reviewassetresidual

valu

es

3.2.

1. A

sset

s im

pairm

ent

and

resi

dual

val

ues

repo

rt

Reporto

fasset

valu

es.

Reporto

fasset

valu

es.

Reviewofresidualvalueswerenot

com

plet

ed.

Str

ateg

ic g

oal

: E

nhan

ced

ICA

SA

Bus

ines

s in

telli

gen

ce, g

ove

rnan

ce a

nd r

epo

rtin

gO

per

atio

nal g

oal

: G

ener

ally

acc

epta

ble

fina

ncia

l rep

ort

ing

4.Im

provefinancial

repo

rt

4.1.Reviewandim

prove

mon

thly

repo

rtin

g.

4.1.1Financialbudget

Bud

get r

epor

tsB

udge

t rep

orts

Bus

ines

s pl

an h

as b

een

linke

d to

JD

E

and

it ha

s be

en o

pera

tiona

lised

.

4.1.2.Tenderrepo

rtTe

nder

repo

rts

Tend

er re

port

sTh

e A

utho

rity

is n

ow s

ubm

ittin

g its

mon

thly

tend

er re

port

s el

ectr

onic

ally

to

Nat

iona

l Tre

asur

y. Im

prov

emen

ts w

ere

mad

e on

Dem

and

man

agem

ent a

nd

bids

repo

rt a

t the

requ

est o

f Exc

o.

101

Section 4FI

NA

NC

E D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f m

easu

rem

ent

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

4.Im

proveFinancial

Report(continued).

4.1.Reviewandim

prove

mon

thly

repo

rtin

g

(con

tinue

d).

4.1.3.Financial

Man

agem

ent

Per

form

ance

Indi

cato

r

(FM

PI)

Reporto

ncompliance

on F

MP

I

Reporto

n

com

plia

nce

on F

MP

I

The

stra

tegi

c pl

an a

nd b

usin

ess

for

2010

/11

wer

e ca

ptur

ed o

n th

e to

ol

deve

lope

d. A

s fro

m A

pril

2010

pro

gres

s

repo

rts

on q

uart

erly

repo

rtin

g w

ill be

done

on

an in

tegr

ated

bas

is (b

udge

t

and

actu

al w

ill be

poo

led

from

JD

E.

Str

ateg

ic g

oal

: E

xecu

ting

ser

vice

del

iver

y ef

fici

entl

y an

d e

ffec

tive

lyO

per

atio

nal g

oal

: Im

pro

ve r

even

ue c

olle

ctio

n

5.Revenuecollection

5.1.

Impr

ove

reve

nue

colle

ctio

n

5.1.1.Spectrum:A

nnual

collectionrateof85%

.

Report

Revenuecollection

repo

rt

Collectionrateof71%

hasbeen

achi

eved

.The

re h

as b

een

an

impr

ovem

ent i

n co

llect

ion.

The

chal

leng

e is

dea

ling

with

sm

all

operators.Regulationsthatadd

ress

this

hav

e be

en d

rafte

d by

Eng

inee

ring

and

Tech

nolo

gy.

5.1.2.Broadcasting:

Ann

ual c

olle

ctio

n ra

te o

f

85%.

Report

Revenuecollection

repo

rt

100%

collectionratehasbeen

achi

eved

.

5.1.3.ECNandECS:

Ann

ual c

olle

ctio

n ra

te o

f

85%.

Report

Revenuecollection

repo

rt

81%collectionratehasbeenachieved.

Ther

e ha

s be

en a

n im

prov

emen

t in

colle

ctio

n.

5.1.4.PostalServices:

Ann

ual c

olle

ctio

n ra

te o

f

90%.

Report

Revenuecollection

repo

rt

100%

collectionratehasbeen

achi

eved

. The

re h

as b

een

an

impr

ovem

ent i

n co

llect

ion.

Str

ateg

ic g

oal

: E

xecu

ting

ser

vice

del

iver

y ef

fici

entl

y an

d e

ffec

tive

lyO

per

atio

nal g

oal

: P

rom

ote

pro

cure

men

t fr

om

HD

I and

SM

ME

s

6.Increase

participationofHDIsin

ICASA’sProcurement.

6.1.Procureatleast55%

fromHDIongood

sand

servicesbelow

R500000.

6.1.1.HDIinlinewith

proc

urem

ent t

arge

t.

Report

HDIreport

Procured41

%from

HDIsforgo

odsand

servicesbelow

R50

000

0.

102

FIN

AN

CE

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f m

easu

rem

ent

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

6.Increase

participationofHDIsin

ICASA’sprocurem

ent

(con

tinue

d).

6.2.Procureatleast40%

fromHDIongood

sand

servicesabo

veR500000.

6.2.1.HDIinlinewith

proc

urem

ent t

arge

t.

Report

HDIreport

Procured27

%from

HDIsforgo

ods

andservicesabo

veR50

000

0.Most

of th

e go

ods

pro

cure

d ar

e te

chin

ical

equipm

ent.Thereisnosignificant

participationofHDIsinthismarket.In

addi

tion

to th

is m

ost o

f the

hig

h va

lue

serv

ice

prov

isio

n w

ere

awar

ded.

6.3.Procureatleast15%

from

SM

MEs

on

good

s an

d

servicesbelow

R500000.

6.3.1.HDIinlinewith

proc

urem

ent t

arge

t.

Report

Reporto

n

proc

urem

ent f

rom

SM

ME

s.

Procured16

%ofgoo

dsandservices

from

SM

ME

s.

6.4.PaySMMEwithin14

days

.

6.4.1.Paymento

fSMME

in li

ne w

ith p

rocu

rem

ent

targ

et.

Report

Reporto

nSMME

paym

ent

Achieved55

%.

6.5.Paylarge

orga

nisa

tions

with

in 3

0

days

.

6.5.1.Ageanalysis

Report

Age

ana

lysi

s re

port

Achieved91

%.

INT

ER

NA

L A

UD

IT D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f m

easu

rem

ent

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r S

trat

egic

go

al:

Enh

ance

d IC

AS

A b

usin

ess

inte

llig

ence

, go

vern

ance

and

rep

ort

ing

Op

erat

iona

l go

al:

Pro

vid

e as

sura

nce

on

the

adeq

uacy

and

eff

ecti

vene

ss o

f th

e co

ntro

l env

iro

nmen

t

1.Reviewsystems

of in

tern

al c

ontr

ol fo

r

adeq

uacy

.

1.1.RiskManagem

ent

Str

ateg

y in

pla

ce a

nd

impl

emen

ted.

1.1.1.Reporto

nthe

implem

entationoftheRisk

Man

agem

ent S

trat

egy.

Report

Two

Com

plianceandRiskhasnotyet

developedtheRiskManagem

ent

Str

ateg

y; a

s a

resu

lt, th

e au

dit c

ould

not b

e ex

ecut

ed.

1.1.2.Reporto

nthe

implem

entationoftheRisk

Man

agem

ent P

lan

by th

e

AuditandRiskCom

mittee.

Report

Two

Com

plianceandRiskhasnotyet

developedtheRiskManagem

entP

lan;

as a

resu

lt, th

e au

dit c

ould

not

be

exec

uted

.

103

Section 4IN

TE

RN

AL

AU

DIT

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f m

easu

rem

ent

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

1.1.3.Reporto

nthe

identifiedTop

10risks.

Report

Two

Com

plianceandRiskhasnotyet

identifiedtheTopTenRisks;asaresult,

the

audi

t cou

ld n

ot b

e ex

ecut

ed..

1.2.

Inte

rnal

Aud

it re

port

s

on th

e ad

equa

cy a

nd

effe

ctiv

enes

s of

inte

rnal

cont

rols

1.2.1.InternalAuditReports

com

plet

ed a

s pe

r th

e

Str

ateg

ic P

lan

Report

309outo

f30(30%

)plannedprojects

wer

e co

mpl

eted

.

1.3.Follow-upReports

on A

udito

r G

ener

al

Man

agem

ent L

ette

r is

sues

1.3.1.InternalAuditReports

Report

Four

Anauditreporto

ntheAuditor-General’s

managem

entletterwasnotfinalisedby

30 M

arch

201

0.

1.4.Co-ordinateefforts

with

oth

er a

ssur

ance

prov

ider

s w

ithin

the

Aut

horit

y

1.4.1.Reports

Report

Four

Stakeholderswereidentifiedbutno

mee

tings

wer

e sc

hedu

led.

1.5.

Effe

ctiv

e us

e of

dat

a

and

extr

actio

n so

ftwar

e

1.5.

1. A

udit

repo

rts

of

inte

grity

of J

DE

, VIP

,

Spe

ctru

m.

Report

Two

Trai

ning

on

AC

L w

as c

ondu

cted

but

acce

ss to

IT s

yste

ms

has

not b

een

gran

ted

and

and

trai

ning

ther

eon

has

not b

een

cond

ucte

d.S

trat

egic

go

al:

Enh

ance

d IC

AS

A b

usin

ess

inte

llig

ence

, go

vern

ance

and

rep

ort

ing

Op

erat

iona

l go

al:

Pro

fess

iona

l int

erna

l Aud

it u

nit

2. C

ompl

ianc

e

with

the

Inst

itute

of

Inte

rnal

Aud

itors

(IIA

)

Sta

ndar

ds

2.1.

Ext

erna

l ass

essm

ents

are

cond

ucte

d an

nual

ly.

2.1.

1. Q

ualit

y A

ssur

ance

Assessm

ent(QAR)report

Report

One

A q

ualit

y as

sura

nce

asse

ssm

ent r

epor

t

was

pre

sent

ed b

y th

e In

stitu

te o

f

InternalAuditorsto

theAuditandRisk

Com

mitt

ee.

2.2.

Inte

rnal

Aud

it S

taff

- C

PD

Tra

inin

g as

per

Indi

vidu

al D

evel

opm

ent

Pla

n (ID

P).

2.2.

1. T

rain

ing

repo

rt

incl

udin

g th

e nu

mbe

r

trai

ned.

Report

Four

Sta

ff at

tend

ed tr

aini

ng a

s in

dica

ted

in

thei

r ID

Ps

and

this

was

repo

rted

to th

e

AuditandRiskCom

mittee.

104

INT

ER

NA

L A

UD

IT D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f m

easu

rem

ent

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r S

trat

egic

go

al:

Enh

ance

d IC

AS

A b

usin

ess

inte

llig

ence

, go

vern

ance

and

rep

ort

ing

Op

erat

iona

l go

al:

Imp

rove

go

vern

ance

pro

cess

es

3. P

rovi

de A

udit

and

RiskCom

mittee(A

RC)

serv

ices

.

3.1.

Qua

rter

ly m

eetin

gs

oftheAuditandRisk

Com

mitt

ee

3.1.

1. A

t lea

st fo

ur

mandatoryAuditandRisk

com

mitt

ee m

eetin

gs to

be

held

dur

ing

the

year

.

Num

ber

Four

AuditandRiskCom

mitteemetmore

than

four

tim

es in

the

year

.

4.AneffectiveAudit

Com

mitt

ee is

in p

lace

4.1.R

egularrepo

rtingto

Cou

ncil/

Exe

cutiv

e by

the

AC

4.1.1.R

eportb

ackto

Cou

ncil

and

EXC

O o

n is

sues

raisedatA

uditandRisk

Com

mitt

ee m

eetin

gs.

Report

Four

MattersraisedbytheAuditandRisk

Com

mitt

ee w

ere

disc

usse

d bo

th a

t

Cou

ncil

and

EXC

O le

vel.

4.2.Thereisregular

trai

ning

of t

he A

C m

embe

rs

4.2.1.Trainingreport

incl

udin

g th

e nu

mbe

r tra

ined

.

Trai

ning

pro

vide

dTw

o tr

aini

ng

sess

ions

AuditandRiskCom

mitteemem

bers

wer

e no

t tra

ined

.

5. C

orpo

rate

gove

rnan

ce s

truc

ture

s

are

wor

king

as

inte

nded

.

5.1.

Aud

it re

port

on

revi

ews

of c

ompl

ianc

e

to c

orpo

rate

gov

erna

nce

proc

esse

s.

5.1.

1 A

udit

repo

rt o

n

func

tioni

ng o

f cor

pora

te

gove

rnan

ce s

truc

ture

s.

Report

Four

A c

orpo

rate

gov

erna

nce

audi

t was

not

done

.

CO

MP

LIA

NC

E A

ND

RIS

K D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r S

trat

egic

go

al:

Enh

ance

d IC

AS

A b

usin

ess

inte

llig

ence

, go

vern

ance

and

rep

ort

ing

Op

erat

iona

l go

al:

Imp

rove

go

vern

ance

pro

cess

es

1. C

oord

inat

e ris

k

man

agem

ent w

ithin

the

Aut

horit

y.

1.1.

A r

isk

man

agem

ent

stra

tegy

is in

pla

ce a

nd is

bein

g im

plem

ente

d.

1.1.1.RiskManagem

ent

Str

ateg

y de

velo

ped

and

appr

oved

by

Cou

ncil.

Pla

nRiskManagem

ent

Str

ateg

y

Dra

ft ris

k m

anag

emen

t Str

ateg

y in

plac

e. E

xist

ing

risk

man

agem

ent

proc

edur

es in

clud

ed in

dra

ft pl

an.

105

Section 4C

OM

PLI

AN

CE

AN

D R

ISK

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

1.2.Riskregistercom

piled

and

in p

lace

.

1.2.

1. D

epar

tmen

tal r

isk

asse

ssm

ent w

orks

hops

cond

ucte

d.

Wor

ksho

ps12

ExistingRiskManagem

entw

orking

prac

tice

inco

rpor

ated

into

wor

ksho

ps

held

.

1.2.2.Riskregistercom

piled

and

appr

oved

by

Cou

ncil.

Registerupdate

Upd

ate

regi

ons

Exi

stin

g ris

k re

gist

er, i

nitia

lly a

ppro

ved

durin

g D

ecem

ber

2008

, was

revi

ewed

durin

g ris

k as

sess

men

t wor

ksho

ps

com

men

cing

Jan

uary

201

0 an

d st

ill in

prog

ress

.

1.2.3.Reportp

rovidedto

AuditandRiskCom

mittee

onrisksidentifiedand

prog

ress

mad

e.

Report

Report

FeedbackprovidedatAuditandRisk

Com

mitteeMeetingsandCouncilRisk

asse

ssm

ent w

orks

hops

1.2.4.Reportp

rovidedto

EXC

O a

nd C

ounc

il on

ris

ks

identifiedandprogress

mad

e.

Report

EXC

O -

12

CO

UN

CIL

- F

our

Feed

back

pro

vide

d at

EXC

O m

eetin

gs.

2. U

pdat

e of

ICA

SA

pol

icie

s an

d

proc

edur

es.

2.1.

Pol

icie

s an

d

proc

edur

es re

view

ed o

n an

annu

al b

asis

.

2.1.

1. N

ew p

olic

ies

and

proc

edur

es d

rafte

d an

d

exis

ting

polic

ies

and

proc

edur

es a

nnua

lly

revi

ewed

and

upd

ated

. All

polic

ies

and

proc

edur

es

appr

oved

by

Cou

ncil.

Pol

icie

s40policies

ICASAfirstlyreview

editsprocess

man

uals

and

ther

eafte

r w

ill pe

rform

a ho

listic

revi

ew o

f pol

icie

s an

d

proc

edur

es d

urin

g 20

10.

2.1.

2. N

ew a

nd re

view

ed

appr

oved

aol

icie

s an

d

proc

edur

es c

omm

unic

ated

mon

thly

to e

mpl

oyee

s.

Intr

anet

12 p

olic

ies

ICASAfirstlyreview

editsprocess

man

uals

and

ther

eafte

r w

ill pe

rform

a ho

listic

revi

ew o

f pol

icie

s an

d

proc

edur

es.

2.1.3.Quarterlybriefingto

empl

oyee

s on

pol

ices

and

proc

edur

es in

con

junc

tion

withHR.

Wor

ksho

psFo

ur w

orks

hops

Impo

rtan

ce o

f pol

icie

s an

d pr

oced

ures

highlightedaspartof16risk

asse

ssm

ent w

orks

hops

hel

d.

106

CO

MP

LIA

NC

E A

ND

RIS

K D

IVIS

ION

Str

ateg

ic o

bje

ctiv

eK

ey p

erfo

rman

ce a

rea

Key

per

form

ance

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r

2. U

pdat

e of

ICA

SA

pol

icie

s

and

proc

edur

es

(con

tinue

d).

2.1.

Pol

icie

s an

d

proc

edur

es re

view

ed o

n an

annu

al b

asis

(co

ntin

ued)

.

2.1.4.Quarterlyrepo

rt

to E

XCO

, Cou

ncil

andAuditandRisk

Com

mitt

ee o

n po

licie

s

and

proc

edur

es a

ppro

ved

and

com

mun

icat

ed to

all

Em

ploy

ees

Report

Four

repo

rts

ICASAfirstlyreview

editsprocess

man

uals

and

ther

eafte

r w

ill pe

rform

a ho

listic

revi

ew o

f pol

icie

s an

d

proc

edur

es.

3. A

ccur

ate

and

relia

ble

perfo

rman

ce

repo

rtin

g in

form

atio

n,

incl

udin

g bu

dget

ing,

financialand

oper

atio

nal

perfo

rman

ce

info

rmat

ion.

3.1.

Ass

essm

ent a

nd

revi

ew o

f per

form

ance

info

rmat

ion

in li

ne w

ith

the

Aud

itor-

Gen

eral

requ

irem

ents

.

3.1.

1. Q

uart

erly

per

form

ance

info

rmat

ion

prep

ared

in a

ccor

danc

e w

ith A

G

requ

irem

ents

tabl

ed a

t

EXC

O, C

ounc

il an

d A

udit

andRiskCom

mittee

Report

FourReports

Del

ays

expe

rienc

ed in

per

form

ance

info

rmat

ion

repo

rtin

g an

d co

nseq

uent

ly

the

effe

ctiv

e re

view

ther

eof.

3.2.

Per

form

ance

info

rmat

ion

prov

ided

timeo

usly

to a

ll

stak

ehol

ders

.

3.2.

1. P

erfo

rman

ce

info

rmat

ion

prov

ided

to

stak

ehol

ders

as

per

thei

r

requ

irem

ents

.

Che

cklis

t12

Che

cklis

tsC

halle

nges

exp

erie

nced

eac

h

quar

ter

by d

ivis

ions

in b

eing

pro

vide

d

withdivisionalfinancialresultsto

acco

mpa

ny th

eir

perfo

rman

ce

info

rmat

ion

narr

ativ

es.

3.3.

Per

form

ance

info

rmat

ion

polic

y an

d

guid

elin

es c

ompi

led

and

in

plac

e.

3.3.

1. P

erfo

rman

ce

info

rmat

ion

polic

y an

d

guid

elin

es d

evel

oped

and

appr

oved

by

Cou

ncil.

Pol

icy

One

Pol

icy

Exi

stin

g pe

rform

ance

info

rmat

ion

wor

king

pra

ctic

e to

be

docu

men

ted.

3.4.Budgeting,monthly

financialrepo

rtingprocess

in li

ne w

ith s

take

hold

ers

requ

irem

ents

.

3.4.1.Timelyandaccurate

budg

et/financerepo

rting.

Che

cklis

t12

Che

cklis

tsC

halle

nges

exp

erie

nced

eac

h

quar

ter

by d

ivis

ions

in b

eing

pro

vide

d

withdivisionalfinancialresultsto

acco

mpa

ny th

eir

perfo

rman

ce

info

rmat

ion

narr

ativ

es.

107

Section 4C

OM

PLI

AN

CE

AN

D R

ISK

DIV

ISIO

NS

trat

egic

ob

ject

ive

Key

per

form

ance

are

aK

ey p

erfo

rman

ce

ind

icat

or

(out

put

)

Uni

t o

f

mea

sure

men

t

Targ

et 2

009/

10O

vera

ll p

rog

ress

dur

ing

the

200

9/10

fina

ncia

l yea

r S

trat

egic

go

al:

Exe

cuti

ng s

ervi

ce d

eliv

ery

effi

cien

tly

and

eff

ecti

vely

Op

erat

iona

l go

al:

Red

uce

inci

den

ts o

f fr

aud

and

co

rrup

tio

n

4.Coordinatefraud

prev

entio

n, d

etec

tion

and

inve

stig

ativ

e

stra

tegi

es.

4.1.AFraudPrevention

Pla

n (F

PP

) is

in p

lace

and

is b

eing

impl

emen

ted.

4.1.1.Im

plem

entationofthe

Frau

d P

reve

ntio

n P

lan

(FP

P)

FPP

Pla

nFP

P P

lan

Whi

lst t

he F

PP

was

not

upd

ated

,

cert

ain

elem

ents

of t

he e

xist

ing

plan

wer

e im

plem

ente

d du

ring

the

year

.

4.1.2.Anti-fraudawareness

cam

paig

n th

roug

h

wor

ksho

ps, i

ntra

net,

ICA

SA

new

slet

ter,

ethi

cs u

pdat

es.

Wor

ksho

ps,

new

slet

ters

, int

rane

t

Wor

ksho

ps -

four

,

New

slet

ters

- tw

o,

Intr

anet

- 1

2

Frau

d aw

aren

ess

and

fraud

inci

dent

s

wer

e hi

ghlig

hted

as

part

of r

isk

asse

ssm

ent w

orks

hops

.

4.1.3.Adhocrepo

rtson

fore

nsic

inve

stig

atio

ns

unde

rtak

en.

Report

Four

repo

rts

Feed

back

was

giv

en a

t ris

k

asse

ssm

ent w

orks

hops

and

at A

udit

andRiskCom

mitteemeetings.

108

109

CONTENTS PAGE

Statement of responsibility 110

ReportoftheAuditandRiskCommittee 111

ReportoftheAuditor-General 114

ReportbytheAccountingOfficer 119

Statementoffinancialperformance 121

Statementoffinancialposition 122

Statement of changes in net assets 123

Cashflowstatement 124

Statement of Comparison of Budget and Actual Amounts 125

Notestotheannualfinancialstatements 126

5

110

STATEMENT OF RESPONSIBILITY

TheChiefExecutiveOfficer,inhiscapacityasAccountingOfficerisresponsibleforthepreparationandintegrityoftheannual

financialstatementsandrelatedinformationincludedinthisannualreport.InorderfortheAccountingOfficertodischarge

his responsibilities, management has developed and continues to maintain a system of internal control. The operations of

ICASAarereviewedprimarilythroughInternalAuditandComplianceandRiskactivitiesandtheCompliance,RiskandAudit

Committee.

The internal controls include a risk based system of internal controls and administrative controls designed to provide

reasonable, but not absolute, assurance that assets are safeguarded and that transactions are executed and recorded in

accordancewithgenerallyacceptedbusinesspracticesandtheentity’spoliciesandprocedures.Trained,skilledpersonnel

with an appropriate segregation of duties implement these controls. They are monitored by management and include a

comprehensive budgeting and reporting system operating within strict deadlines and an appropriate control framework.

Toreviewthesystemofinternalcontrol,aninternalauditfunctionhasbeensetupthatconductsoperational,financialand

specificauditsandco-ordinatesauditcoveragewiththeAuditor-General.TheAuditor-Generalisresponsibleforreporting

ontheannualfinancialstatements.

TheannualfinancialstatementshavebeenpreparedinaccordancewiththeeffectiveStandardsofGenerallyRecognised

AccountingPractice (GRAP) issuedby theAccountingStandardsBoard.Theannual financial statementsarebasedon

appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.

Council believes that the entity will be a going concern in the year ahead. For this reason they continue to adopt the going

concernbasisinpreparingtheannualfinancialstatements.

Theannualfinancialstatementsfortheyearended31/03/2010setoutonpages110to175,havebeenapprovedbyCouncil

andaresignedonitsbehalfby:

KARABO MOTLANA PARIS MASHILE

CHIEF EXECUTIVE OFFICER FORMER CHAIRPERSON

31 JULY 2010 31 JULY 2010

STATEMENT OF RESPONSIBILITY

111

Section

INTRODUCTION

TheAudit andRiskCommitteeherebypresents toParliament itsreport forthefinancialyearended31March2010as

requiredbytheTreasuryRegulationsissuedintermsofthePublicFinanceManagementAct,Act1of1999(asamended)

(PFMA ).

AUDIT AND RISK COMMITTEE MEMBERS AND ATTENDANCE

Inaccordancewithitscharter,theAuditandRiskCommitteehasmet12timessinceits2009report(dated:31July2009).

The membership and attendance at those meetings was as follows;

Meetings attended

Sandile Swana (Chairperson – re-appointed 01 January 2010) 9

ReneKenosi(Member–re-appointed01January2010) 12

TsedisoGcabashe(Member–appointed26February2008) 11

TshekoRatsheko(Member–appointed01February2010) 8

Thandi Sihlaba (Member – appointed 1 July 2010) 3

AUDIT AND RISK COMMITTEE RESPONSIBILITY

TheAuditandRiskCommitteehas:

• compliedwithitsresponsibilitiesandobligationsassetoutinsection38(1)(a)ofthePFMAandTreasuryRegulation

3.1.13; and

• complied with and discharged all its responsibilities according to the Audit Committee charter, which regulates its

formal terms of reference .

THE EFFECTIVENESS OF INTERNAL CONTROL

TheICASAAuditandRiskCommitteehascontinuedtobestrong,anditsmeetingsarecharacterisedbypenetratingand

robust debates. The annual financial statements for the year ending 31March 2010 have been audited by the Auditor

General,whohasissuedaqualifiedopinion.Thereasonthatthefinancialstatementsarequalifiedisduetofailuretoperform

basicaccountingworkandpoormanagementonthepartoftheChiefExecutiveOfficer(CEO),ChiefFinancialOfficer(CFO)

and Chief Audit Executive (CAE).

ParliamentandCouncilareurgedtotakeacloserlookatthestewardshipoffinanceswithinICASA,notsomuchbecause

ofdishonestybutbecauseofindolenceandincompetencethathasnowtakenroot.ThefinancefunctionwithinICASAis

poorly led, managed and supervised which is the duty of the CEO and CFO. In poor leadership it can only be surpassed by

theInternalAuditunit.TheAuditandRiskCommitteeofferedassistancewhichhasnotbeenutilisedandattimeshasbeen

frowned upon by the CEO and consequently the CFO.

5REPORT OF THE AUDIT AND RISK

COMMITTEE

for the year ended 31 March 2010

112

InviewofthequalifiedauditlastyeartheAuditandRiskCommitteeofferedthreemajorinterventions:

Intervention Status Recommendation

RequestedtheCFOtoprepareadetailed

action plan that will be used to guide the

preparations of ICASA for the annual audit

and help manage the annual audit.

The plan was prepared and

reviewedbytheAuditandRisk

Committee and never implemented

by management.

The CEO resisted the idea of preparing

the action plan and the CFO never

implemented. We recommend that

Council follow up with the individuals

regarding the above issue.

TheAuditandRiskCommitteeoffered

the two Chartered Accountants who

aremembersoftheAuditandRisk

Committee to serve as technical

overseers and advisors in a joint technical

committee with management to address

technical accounting issues as they

emerge during the audit.

The meetings of this committee

were sporadic and management

generally did not cooperate.

The CEO and CFO should be held

accountable for this failure as they did

not exploit readily available resources

that could have prevented some of

the problems that have occurred, for

example the completeness of accruals,

commitments and opening balances.

TheAuditandRiskCommitteehad

recommended that an investigation

be done into the competency and

effectiveness of the Finance function at

theendofthe2009financialyear.The

report of the Auditor General for the 2010

year audit largely supports the need for

the investigation.

Management has stalled this

exercise on the grounds that it

presents a risk to ICASA and the

CAE has not been able to tell the

AuditandRiskCommitteewho

identifiedthisriskandwhatthe

risk is.

The CEO has plainly stated that

he cannot pay any attention to

the instructions of the Audit and

RiskCommitteeevenwhenitis

operating fully within its charter.

Similarly as above Council should obtain

the reason why this investigation was not

performed, as the problems could have

been curtailed.

Financial reporting

ICASA has generally failed to produce reports for the Audit and Risk Committee within the expected and prescribed

timeframesincludingallfinancialstatementsandmanagementaccounts,andassuchthereviewsofthesedocumentsis

doneatthelastminuteandisneverthorough.Inthe2010financialyearandduringtheaudit,documentssubmittedwereof

alowstandardandsubmittedverylate.ConsequentlytheAuditandRiskCommitteehasnotbeenabletoreviewthefinal

financialstatementsandmakeanyrecommendationregardingwhetherICASACouncilshouldadoptthemornotbecause

they were not tabled at the meetings scheduled for 22 and 29 July 2010.

Leadership and Governance

Whilst the Audit and Risk Committee is comprised of well qualified, hardworking and experienced people it has been

rendered irrelevant by the poor performance of management and the publicly stated position of the previous Chairman that

he is afraid to take disciplinary action against management and the CEO.

REPORT OF THE AUDIT AND RISK COMMITTEE (continued)

for the year ended 31 March 2010

113

Section

TheCouncilatICASAisverycooperativetowardstheAuditandRiskCommitteeandoverallthereisnoevidencethatCouncil

neitherpromotesnortoleratespoorgovernance.HoweverCouncilhasnotbeenabletoactdecisivelytowardstheCEOand

CFO in the light of sustained non-performance particularly when it comes to compliance with the PFMA, modern accounting

practices including the production of high quality management accounts, and the overall internal audit and accounting

work.AsagreedinapreviousmeetingwiththeAuditorGeneralinMarch2010,andmyfurtherverbalreporttoSCOPA:the

completion of the investigation that I have requested is absolutely urgent in order to start afresh on a clean slate. The calibre

of CFO; CAE and CEO is something that needs careful attention more than the salary expense, going forward. A CEO who

hasameaningfulappreciationofaccountingandfinanceisrequired.Thereisalsonoevidenceofanappetiteforhardwork

northeminimumskillsamongsttheaforementionedincumbents.TheAuditorGeneral’sreportattheconclusionofthisaudit

points in the same direction.

Internal audit

The Auditor General never placed any reliance on the work done by the Internal Audit Unit this year, and the Internal Audit unit

itselfindicatedthatthesuccessrateofitsprojectsisabout30%.ThereisgeneraldiscordwithintheInternalAuditUnitand

intheentireAuditandRiskdivisionatICASAduetoareorganisationinitiatedbytheCEOwhichhasnotbeenworkedonin

accordance with proper change management techniques. The suitability of the current CAE must be examined carefully in

the light of self-evident non-performance.

Evaluation of the financial statements

TheAuditandRiskCommitteehasnothadthetimetoreviewthefinancialstatementswithintheprescribedandallocated

timeduetotheunavailabilityoftheannualfinancialstatements.Whilstmeetingswereconvenedinlinewiththeapproved

meetingdatesschedule,managementdidnottablethefinalannualfinancialstatements.Usersmustthereforerelyonthe

opinion of the Auditor General.

Sandile Swana

Chairperson

AuditandRiskCommittee

31 July 2010

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114

REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE FINANCIAL STATEMENTS OF THE

INDEPENDENT COMMUNICATION AUTHORITY OF SOUTH AFRICA FOR THE YEAR ENDED 31 MARCH 2010

REPORT ON THE FINANCIAL STATEMENTS

Introduction

IhaveauditedtheaccompanyingfinancialstatementsoftheIndependentCommunicationAuthorityofSouthAfrica(ICASA)

whichcomprisethestatementoffinancialpositionasat31March2010,thestatementoffinancialperformance,statement

ofchangesinnetassetsandcashflowstatementfortheyearthenended,andasummaryofsignificantaccountingpolicies

and other explanatory information, set out on pages 121 to 175.

Accounting officer’s responsibility for the financial statements

Theaccountingofficerisresponsibleforthepreparationandfairpresentationofthesefinancialstatementsinaccordance

withtheSouthAfricanStandardsofGenerallyRecognisedAccountingPractices(SAStandardsofGRAP)asdeterminedby

the National Treasury as set out in accounting policy note 1.1 and in the manner required by the Public Finance Management

ActofSouthAfrica(PFMA).Thisresponsibilityincludes:designing,implementingandmaintaininginternalcontrolrelevantto

thepreparationandfairpresentationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraud

or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in

the circumstances.

Auditor-General’s responsibility

Asrequiredbysection188of theConstitutionofSouthAfricaandsection4of thePublicAuditActofSouthAfrica,my

responsibilityistoexpressanopiniononthesefinancialstatementsbasedonmyaudit.

I conducted my audit in accordance with International Standards on Auditing and General Notice 1570 of 2009 issued in

Government Gazette 32758 of 27 November 2009. Those standards require that I comply with ethical requirements and

planandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterial

misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterial

misstatementof thefinancial statements,whetherdue to fraudorerror. Inmaking those riskassessments, theauditor

considers internalcontrol relevant to theentity’spreparationand fairpresentationof thefinancialstatements inorder to

design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectivenessof theentity’s internalcontrol.Anauditalso includesevaluatingtheappropriatenessofaccountingpolicies

used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation

ofthefinancialstatements.

AUDITOR-GENERAL’S REPORT

115

Section

IbelievethattheauditevidenceIhaveobtainedissufficientandappropriatetoprovideabasisformyauditopinion.

Basis for qualified opinion

Accruals

There was no system of control over the recording of outstanding invoices at year-end on which I could rely for the purpose of

my audit, and there were no satisfactory audit procedures I could perform to obtain reasonable assurance that all outstanding

invoices have been recorded. Consequently, I am unable to conclude on the completeness of the accrual liability in the

annualfinancialstatements.

Opening accounts receivable and accounts payable balance

ICASA collect license fees as contemplated by the Electronic Communications Act (ECA). In terms of section 15(3) of the

Independent Communication Authority of South Africa Act, 2000 (Act No. 13 of 2000), the authority is required to pay all fees

received(includingSpectrumlicensefees)andheldontheirbehalftotheNationalRevenueFund(NRF)within30daysafter

receipt of such revenue.

Included in the opening accounts receivable and accounts payable balances as disclosed in note 18 and note 21 to the

financialstatements,areSpectrumlicensedebtorsandacorrespondingNRFpayableofR24450119.Iwasunabletoobtain

sufficientappropriateauditevidenceandperformalternativeauditproceduresthatIconsiderednecessarytosatisfymyself

astotheexistenceandvaluationoftheopeningSpectrumaccountsreceivablebalanceandtheresultingNRFpayable.

Commitments

Therewasnocontractmanagementsysteminplacefortheidentificationandrecognitionofcontractsandtherewereno

satisfactory alternative audit procedures that I could perform to obtain reasonable assurance that all commitments were

properly recorded.Consequently, Iwasunable toobtainsufficientappropriateauditevidencetosatisfymyselfas to the

completenessandaccuracyofcommitmentsofR14693805,asstatedinnote31tothefinancialstatements.

qualified opinion

Inmyopinion,exceptfortheeffectsofthemattersdescribedintheBasisforqualifiedopinionparagraphs,thesefinancial

statements present fairly, in allmaterial respects, the financial position of ICASA as at 31March 2010 and its financial

performanceanditscashflowsfortheyearthenended,inaccordancewithSAStandardsofGRAPasdeterminedbythe

National Treasury as set out in accounting policy note 1.1 and in the manner required by the PFMA.

Emphasis of matter

Idrawattentiontothemattersbelow.Myopinionisnotmodifiedinrespectofthesematters:

5

116

Irregular expenditure

Asdisclosedindisclosurenote10tothefinancialstatements,irregularexpendituretotheamountofR655626

(2009:R387081)wasincurredbecauseproperprocurementprocedureswerenotfollowed.

Significant uncertainties

Withreferencetonote26tothefinancialstatements,ICASAisthedefendantinanumberoflawsuits.Theultimateoutcome

of these matters cannot currently be determined, and no provision for any liability that may result has been made in the

financialstatements.

Restatement of corresponding figures

Asdisclosedinnote3andnote4tothefinancialstatements,thecorrespondingfiguresfortheyearended31March2009

havebeenrestatedasaresultoferrorsdiscoveredduringtheyearended31March2010inthefinancialstatementsofICASA

at, and for the year ended, 31 March 2009.

Material losses through criminal conduct

Asdisclosedintheaccountingofficer’sreportonpage141oftheannualreport,materiallossestotheamountofR195522

were incurred as a result of fraudulent activities in the Administered revenue section

REPORT ON OTHER LEGAL AND REGULATORY REqUIREMENTS

In terms of the PAA of South Africa and General notice 1570 of 2009, issued in Government Gazette No. 32758 of 27

November 2009Iincludebelowmyfindingsonthereportonpredeterminedobjectives,compliancewiththePFMA,Public

ServiceAct(PSA),PreferentialProcurementPolicyFrameworkAct(PPPFA)andfinancialmanagement(internalcontrol).

Predetermined objectives

Presentation of reported performance information

Adequate explanations for major variances between the planned and the actual reported targets were not reported as

required in terms of the relevant reporting guidance.

Usefulness of reported performance information

Thefollowingcriteriawereusedtoassesstheusefulnessoftheplannedandreportedperformance:

• Measurability:Areobjectivesmademeasurablebymeansofindicatorsandtargets?Areindicatorswelldefinedand

verifiable,andaretargetsspecific,measurable,andtimebound?

AUDITOR-GENERAL’S REPORT

117

Section

Thefollowingauditfindingsrelatetotheabovecriteria:

Planned and reported performance targets not specific and measurable

Theplannedandreportedtargetswerenot:

• specificinclearlyidentifyingthenatureandtherequiredlevelofperformance;and

• measurableinidentifyingtherequiredperformance.

Compliance with laws and regulations

Non-adherence to requirements

Treasury regulations (TR)

• ContrarytotherequirementsofTR8.2.3theauthoritydidnotpayitssupplierswithin30daysofreceiptofinvoices.

• Contrary to the requirementsof TR17 the authority utilised a revenue suspenseaccount, anddid not implement

adequate controls to clear the items on a monthly basis.

• ContrarytotherequirementsofTR15.10managementdidnotpreparedailybankreconciliationsforanyoftheirbank

accounts.

• Theinternalauditfunctiondidnotsubstantiallyfulfilitsresponsibilitiesfortheyear,assetoutinTR3.2

Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA)

• Contrary tosection38of thePFMAtheauthoritydidnotdesignand implementsufficientandappropriate internal

controls for the recording and managing of spectrum debtors.

INTERNAL CONTROL

Iconsidered internalcontrol relevant tomyauditof thefinancialstatementsandthereportonpredeterminedobjectives

and compliance with the PFMA, PSA and PPPFA, but not for the purposes of expressing an opinion on the effectiveness of

internalcontrol.Themattersreportedbelowarelimitedtothedeficienciesidentifiedduringtheaudit.

Leadership

Decisive action to mitigate risks

Actionsarenottakeninatimelymannertoaddresstherisksrelatingtotheachievementofcompleteandaccuratefinancial

reporting.

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118

Oversight responsibility

Theaccountingofficerdoesnotexerciseoversightresponsibilityoverreportingandcompliancewithlawsandregulations

and internal control.

Financial and performance management

Adequate financial management systems

Manual or automated controls are not designed to ensure that all accruals are recorded at year end.

quality and reliable financial statements

Thefinancialstatementsarenotreviewedforcompletenessandaccuracypriortosubmissionforauditpurposes,andasa

resultthefinancialstatementsweresubjecttomaterialamendmentsresultingfromtheaudit.

Governance

Internal audit

Internalcontroldeficienciesarenot identifiedandcommunicated ina timelymanner toallow forcorrectiveaction tobe

taken.

OTHER REPORTS

Investigations completed during the financial year

AninvestigationintothefraudulentactivitiesintheAdministeredRevenueFundwasconcluded.Anemployeewasfound

guiltyoffraudulentmisconduct,anddismissed.ICASAisattemptingtorecovertheR195522fromtheemployee’spension

fund distribution.

Pretoria

31 July 2010

AUDITOR-GENERAL’S REPORT

119

Section

REPORT BY THE ACCOUNTING OFFICER

Ihavepleasure inpresenting toParliament the IndependentCommunicationsAuthorityofSouthAfrica’s (“ICASA”) tenth

annualreport.Thereportcoverstheperiod1April2009to31March2010.Asrequiredbysection16(1)(b)(i)oftheICASA

Act13of2000(“ICASAAct”).ICASAhaspreparedadetailedannualreportfortheactivitiesduringthefinancialyearunder

review.

Background

ICASA is the regulator of the electronic communications and postal sectors. It was established in July 2000 in terms of the

ICASA Act.

ICASA’skeyfunctionsareto:

• make regulations and policies that govern postal, telecommunications and broadcasting services;

• issue licences to providers of telecommunication, broadcasting and postal services;

• monitor the environment and enforce compliance with rules, regulations and policies;

• hear and decide on disputes and complaints brought by stakeholders;

• plan, control and manage the frequency spectrum; and

• protect the consumers from unfair business practices, poor quality services and harmful or inferior products.

Applicable legislation

ICASA derives its mandate from the following statutes: ICASA Act of 1999, Postal Services Act of 1998, Electronic

Communications Act 35 of 2005, and the Broadcasting Act of 1999.

General review of the state of financial affairs

Theannualfinancialstatementshavebeenpreparedonagoingconcernbasisandthefinancialperformanceandposition

demonstrates that this basis is sound.

We continue to strive to improve the financial management of ICASA and financial policies have been developed and

monitored to give effect to this.

Thebudgetallocationforthe2009/10financialyearwasnotexceeded.

Inthe2005-2006financialyearNationalTreasuryissuedacircularwherebyICASAwasgrantedpermissiontoretaininterest

earnedonfavourablebankaccountbalances.ICASArecognisedinterestincomeofR16millioninthe2009/10financialyear

(2008/9–R19million).

Duringthe2009/10financialyear,theemployeeintheAdministeredRevenuesectionwassuspendedforallegedinvolvement

infraudulentactivities.Theemployeewassubsequentlydismissedforfraudcommitted;anamounttotallingR195522was

confirmedtohavebeenembezzled.

REPORT BY THE ACCOUNTING OFFICER 5

120

REPORT BY THE ACCOUNTING OFFICER (continued)

Council and Executive Management’s remuneration

DetailsofCouncilandExecutiveManagement’sremunerationaresetoutinnote8totheannualfinancialstatements.

Events after the reporting date

Therewerenosignificanteventsthattookplacebetweenthereportingdateandthedateinwhichthefinancialstatements

were authorised for issue.

Administered Revenue on behalf of National Revenue Fund

Onthe16th of March 2010, National Treasury issued the opinion on the manner in which ICASA should report the results of

itsAdministeredRevenueSection.Thereportwentasfollows:

• ICASA will continue to prepare separate annual financial statements (AFS) for the NRF only for internal control

purposes;

• ICASA and DOC should sign a Memorandum of Understanding (MOU) which outline the responsibilities for both

parties; and

• DOC should at year end disclose the amounts collected by ICASA, and not paid to DOC as an accounts receivable.

ICASAwillsendtheconfirmationtoDOCofamountcollectedandnotyetpaidovertoDOC.

ICASAdisclosestheassetsandliabilitiesoftheAdministeredRevenuesectioninitsannualfinancialstatements.

Business address

Physicaladdress: Postaladdress:

Blocks A, B, C & D Private Bag X10002

Pinmill Farm Sandton

164KatherineStreet 2146

Sandton

2128

Karabo Motlana

ChiefExecutiveOfficer

Date

REPORT BY THE ACCOUNTING OFFICER

121

Section

Note

31 March

2010

R

31 March

2009

R

Actual Restated

REVENUE

Revenuefromnon-exchangetransactions 2 269 607 000 247272000

Other income from non-exchange transactions 5 598 869 729242

Other income from exchange transactions 5 10 539 850 12163838

280 745 719 260165080

EXPENDITURE (279 217 253) (255243987)

Administrative expenses 6 (36 255 923) (37 208 010)

Staff costs 7 (159 040 381) (133316499)

Audit fees 9 (1 602 727) (2153768)

Other operating expenses 10 (85 633 622) (70869321)

Depreciation 14 3 227 480 (10 598 221)

Amortisation 15 87 920 (1098168)

SURPLUS FROM OPERATIONS

1 528 466 4921093

Finance income 12 4 688 307 7260940

Finance costs 11 (5 834) (81204)

TotalfinanceIncome 4 682 473 7179736

SURPLUS FOR THE YEAR 6 210 939 12 100 829

STATEMENT OF FINANCIAL

PERFORMANCE

for the year ended 31 March 2010

5

122

Note

31 March

2010

R

31 March

2009

RASSETS

Non-current assets 103 897 717 79055694

Property, plant and equipment 14 98 256 577 76279277

Intangible assets 15 5 641 140 2776417

Current assets 583 413 954 644240099

Trade and other receivables 16 1 456 833 1 789 813

Prepayments 17 4 531 485 8 083 228

NationalRevenueFund–AdministeredAssets 18 496 281 284 555834637

Cash and cash equivalents 19 81 144 352 78532421

TOTAL ASSETS 687 311 671 723 295 793

LIABILITIES

Current liabilities 554 669 937 596842345

Trade and other payables 20 32 681 071 17645535

NationalRevenueFundpayables 21 521 966 213 572653145

Current portion of operating lease liability 22 22 653 6369988

Currentportionoffinanceleaseobligations:on 24 - 173677

Non-current liabilities - 22653

Non-current portion of operating lease liability 22 - 22653

TOTAL LIABILITIES 554 669 937 596864998

FUNDS

ACCUMULATED RESERVES 132 641 734 126430795

Accumulated surplus 132 641 734 126430795

TOTAL FUNDS AND LIABILITIES 687 311 671 723 295 793

STATEMENT OF FINANCIAL POSITION

as at 31 March 2010

123

Section

Note

Accumulated

deficit

R

Total

ROpening balance at 1 April 2008 (8949069) (8949069)

Effect of prior period error 4 33731342 33731342

Effect of change in accounting policy 3 86678386 86678386Restated opening balance 111460659 111460659

Surplus for the year as previously reported 5 579 813 5 579 813

Effect of prior period errors 4 2613072 2613072

Effect of change in accounting policy 3 6777251 6777251Balance as at 31 March 2009 restated 126430795 126430795

Surplus for the year 6210939 6210939Balance as at 31 March 2010 132641734 132641734

STATEMENT OF CHANGES IN

NET ASSETS

for the year ended 31 March 2010

5

124

Note

31 March

2010

R

31 March

2009

RActual Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Cash received from DoC 269 607 000 247312000

CashreceivedbyAdministeredRevenue 1 913 146 304 2313642100

CashpaidbyAdministeredRevenue (1 904 279 883) (2358104969)

Cash paid to suppliers (109 015 012) (118463301)

Cash paid to employees (132 635 207) (106589042)

Employees tax paid (26 707 045) (26690048)Cash generated from/(utilised in) operations 25 10 116 157 (48893260)

Finance income 5/12 15 607 109 19342058

Finance costs 11 (5 834) (81204)

Netcashflowsfromoperatingactivities 25 717 432 (29632406)

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of property plant and equipment 14 (20 448 330) (17929340)

Acquisition of intangible assets 15 (2 773 147) (943138)

Proceeds on disposal of property, plant and equipment 115 976 184091

Net cash utilised in investing activities (23 105 501) (18688387)

Net increase/(decrease) in cash and cash equivalents 2 611 931 (48320793)

Cash and cash equivalents at the beginning of the year 78 532 421 126853214

Cash and cash equivalents at the end of the year 19 81 144 352 78532421

CASH FLOW STATEMENT

for the year ended 31 March 2010

125

Section

Budget

Approved

R

Budget

Final

R

Actual

R

Difference

between

Approved

Budget and

Actual

RREVENUE

Total grants appropriated 279607000 279607000 269607000 10 000 000

Other income 11 855 805 11 855 805 11 138 719 717086

291462805 291462805 280745719 10717086

EXPENDITURE (291462805) (291462805) (279 217 253) (12245552)

Administrative expenses (34347858) (33795639) (36255923) 1908065

Staff costs (140197164) (139602906) (159040381) 18843217

Audit fees (1 930 000) (1 930 000) (1602727) (327 273)

Other operating expenses (103149978) (104296455) (85633622) (17516356)

Depreciation (10 809 388) (10 809 388) 3227480 (14036868)

Amortisation (1028417) (1028417) 87 920 (1116337)

SURPLUS / (DEFICIT) FROM

OPERATIONS- - 1528466 (1528466)

Finance income - - 4688307 (4688307)

Finance costs - - (5834) 5834

TotalfinanceIncome - - 4682473 (4682473)

SURPLUS /(DEFICIT) FOR

THE YEAR- - 6210939 (6210939)

STATEMENT OF COMPARISON OF

BUDGET AND ACTUAL AMOUNTS

for the year ended 31 March 2010

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126

1 Summary of significant accounting policies

The principal accountingpoliciesappliedinthepreparationofthesefinancialstatementsaresetoutbelow.Thesepolicies

have been consistently applied to all the years presented, unless otherwise stated.

1.1 Basis of preparation

ThefinancialstatementshavebeenpreparedinaccordancewiththeStandardsofGenerallyRecognisedAccountingPractice

(GRAP),includinganyinterpretationsofsuchrelevantstatementsissuedbytheAccountingStandardsBoard.Thefollowing

statementswereapprovedandeffectiveatthereportingdate:

• GRAP1PresentationofFinancialStatements

• GRAP2CashFlowStatements

• GRAP3AccountingPolicies,ChangesinAccountingEstimatesandErrors

• GRAP4TheEffectsofChangesinForeignExchangeRates

• GRAP5BorrowingCosts

• GRAP6ConsolidatedandSeparateFinancialStatements

• GRAP7InvestmentsinAssociates

• GRAP8InterestsinJointVentures

• GRAP9RevenuefromExchangeTransactions

• GRAP10FinancialReportinginHyperinflationaryEconomies

• GRAP11ConstructionContracts

• GRAP12Inventories

• GRAP13Leases

• GRAP14EventsAftertheReportingDate

• GRAP16InvestmentProperty

• GRAP17Property,PlantandEquipment

• GRAP19Provisions,ContingentLiabilitiesandContingentAssets

• GRAP100Non-currentAssetsHeldforSaleandDiscontinuedOperations

• GRAP101Agriculture

• GRAP102IntangibleAssets

StandardsofGRAPforwhichtheMinisterofFinancehasdeterminedaneffectivedateformpartoftheGRAPReporting

Framework.InterpretationsofStandardsofGRAPformpartoftheGRAPReportingFrameworkwhentheInterpretationof

StandardsofGRAPisineffect.Whenaneffectivedatehasbeendetermined,entitiesarepermittedtoadopttheStandards

ofGRAPand/oranyrelatedInterpretationsoftheStandardsofGRAPearlierthanthedatespecified.StandardsofGRAPthat

have been issued by the Board, but for which an effective date has not yet been determined by the Minister of Finance, do not

formpartoftheGRAPReportingFramework.WhereaStandardofGRAPthatformspartoftheGRAPReportingFramework

is based on a standard or pronouncement of another standard setter and that standard setter subsequently amends its

standardsorpronouncements,suchamendmentsshallnotformpartoftheGRAPReportingFramework.Directivesand

guidelinesissuedbytheAccountingStandardsBoard(ASB)formpartoftheGRAPReportingFramework.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

127

Section

IntheabsenceofaStandardofGRAPdealingwithaparticulartransactionorevent,thepronouncementsofthefollowing

standard setters are used, in descending order, to develop an appropriate accounting policy to the extent that the

requirements arenot in conflictwith theStandardsofGRAPor theFramework for the Preparation and Presentation of

Financial Statements:

(a) International Public Sector Accounting Standards Board (IPSASB).

(b) International Accounting Standards Board (IASB), including the Framework for the Preparation and Presentation of

Financial Statements.

(c) Accounting Practices Board (APB).

(d) Accounting Practices Committee (APC) of the South African Institute of Chartered Accountants (SAICA).

Application of other pronouncements

IPSASB

WhenthereisnoequivalentStandardofGRAP,anInternationalPublicSectorAccounting

Standard(IPSAS)thatiseffectiveformspartoftheGRAPReportingFramework,unless:

• thatIPSASisinconflictwiththecurrentASBFramework for the Preparation and Presentation of Financial Statements

orexistingStandardsofGRAP,or

• (b)itisnotapplicabletoentitiesthatcurrentlyapplytheStandardsofGRAP.

AnIPSAS,orpartsthereof,isinconflictwiththeASBFramework for the Preparation and Presentation of Financial Statements

orStandardsofGRAPwhenitdealswithanissuedifferentlytotheASBFramework for the Preparation and Presentation of

Financial StatementsoraStandardofGRAPorwhentheIPSASisapplicabletoabasisofaccountingotherthantheaccrual

accounting basis.

AnIPSASissuedbytheIPSASBthatisnotyetineffectdoesnotformpartoftheGRAPReportingFramework.Wherea

StandardofGRAPthathasbeenissuedbytheBoard,butforwhichaneffectivedatehasnotyetbeendeterminedbythe

MinisterofFinance,isbasedonanIPSAS,thatIPSASdoesnotformpartoftheGRAPReportingFramework.Wherean

IPSASthatformspartoftheGRAPReportingFrameworkisbasedonastandardorpronouncementofanotherstandard

setter and that standard setter subsequently amends its standards or pronouncements, such amendments shall not form

partoftheGRAPReportingFramework.

IASB

WhenthereisnoequivalentStandardofGRAPorIPSAS,anInternationalFinancial

ReportingStandard(IFRS)thatiseffectiveformspartoftheGRAPReportingFramework,unless:

• thatIFRSisinconflictwiththecurrentASBFramework for the Preparation and Presentation of Financial Statements or

existingStandardsofGRAPorIPSASs;

• itisnotapplicabletoentitiesthatcurrentlyapplytheStandardsofGRAP.

5

128

1 Summary of significant accounting policies (continued)

1.1 Basis of preparation (continued)

Application of other pronouncements (continued)

AnIFRS,orpartsthereof,isinconflictwiththeASBFrameworkforthePreparationandPresentationofFinancialStatementsor

StandardsofGRAP(whethereffectiveornot)orIPSASswhenitdealswithanissuedifferently.Examplesofsuchdifferences

are themeasurementofnon-exchange transactionsor theconceptofcomprehensive income.Wherean IFRS,orparts

thereof,isinconflict,theentityappliestheprinciplesestablishedintheASBFrameworkforthePreparationandPresentation

ofFinancialStatementsorStandardsofGRAPor IPSASs. An IFRS isnotapplicable toanentitywhere itsscope limits

theapplicationtospecificcircumstances.Anentityassesseswhetheran industryspecificstandardorotherstandardor

pronouncement is applicable based on the transactions and events of the entity.

AnIFRSissuedbytheIASBthatisnotyetineffectdoesnotformpartoftheGRAPReportingFramework.WhereaStandard

ofGRAPthathasbeenissuedbytheBoard,butforwhichaneffectivedatehasnotyetbeendeterminedbytheMinisterof

Finance,isbasedonanIFRS,thatIFRSdoesnotformpartoftheGRAPReportingFramework.

APB

The standards and pronouncements of the IASB are issued without amendment as

Statements of Generally Accepted Accounting Practice in South Africa (SA GAAP) and, as such, the principles in paragraph

20to26applyequallytoSAGAAP.

APC

GuidesandCircularsissuedbytheAPCarenotpartoftheGRAPReportingFramework.Thebudgetinformationhasbeen

includedforthefirsttimethisfinancialyear.Paragraphs11to15ofGRAP1havebeenimplementedforthefirsttimethis

year.ThestatementonPresentationofBudgetInformationinFinancialStatements(GRAP)wasapprovedbytheAccounting

StandardsBoardandisnoteffectiveyetastheMinisterhasnotpublisheditintheGovernmentGazetteyet.

EffectiveIFRSsandIFRICsthatareappliedconsideringtheprovisionsinparagraphs20to26oftheDirective:

IFRS3(AC140)BusinessCombinations

IFRS4(AC141)InsuranceContracts

IFRS6(AC143)ExplorationforandEvaluationofMineralResources

IFRS7(AC144)FinancialInstruments:Disclosures

IAS 12 (AC 102) Income Taxes

IAS19(AC116)EmployeeBenefits

IAS32(AC125)FinancialInstruments:Presentation

IAS39(AC133)FinancialInstruments:RecognitionandMeasurement

SIC–21(AC421)IncomeTaxes–RecoveryofRevaluedNon-DepreciableAssets

SIC–25(AC425)IncomeTaxes–ChangesintheTaxStatusofanEntityoritsShareholders

SIC–29(AC429)ServiceConcessionArrangements–Disclosures

IFRIC2(AC435)Members’SharesinCo-operativeEntitiesandSimilarInstruments

IFRIC4(AC437)DeterminingwhetheranArrangementcontainsaLease

IFRIC9(AC442)ReassessmentofEmbeddedDerivatives

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

129

Section

IFRIC12(AC445)ServiceConcessionArrangements

IFRIC13(AC446)CustomerLoyaltyProgrammes

IFRIC14(AC447)IAS19–TheLimitonaDefinedBenefitAsset,MinimumFundingRequirementsandtheirInteraction

IFRIC15(AC448)AgreementsfortheConstructionofRealEstate

IFRIC16(AC449)HedgesinaNetInvestmentinaForeignOperation

ThefollowingstatementsofGRAPwereapprovedbutnotyeteffectiveatthereportingdate:

• GRAP18-SegmentReporting

• GRAP21-Impairmentofnon-cash-generatingassets

• GRAP23-RevenuefromNon-exchangeTransactions(TaxesandTransfers)

• GRAP24-PresentationofBudgetInformationinFinancialStatements

• GRAP25-EmployeeBenefits

• GRAP26-Impairmentofcash-generatingassets

• GRAP103-HeritageAssets

• GRAP104-FinancialInstruments

These statements were not effective at the end of the reporting period and all statements had not been adopted at the end

ofthereportingperiodwiththeexceptionoftheStatementonRevenuefromNon-exchangeTransactions(GRAP23).

Directives

Thefollowingdirectiveswereissuedandeffectiveatthereportingdate:

• Directive1-RepealofExistingTransitionalProvisionsin,andConsequentialAmendmentsto,StandardsofGRAP

• Directive2-TransitionalProvisionsfortheAdoptionofStandardsofGRAPbyPublicEntities,MunicipalEntitiesand

Constitutional Institutions

• Directive3-TransitionalProvisionsfortheAdoptionofStandardsofGRAPbyHighCapacityMunicipalities

• Directive 4 - Transitional Provisions for the Adoption of Standards of GRAP by Medium and Low Capacity

Municipalities

• Directive5-DeterminingtheGRAPReportingFramework

• Directive7-TheApplicationofDeemedCostontheAdoptionofStandardsofGRAP

Approved guidelines of Standards of GRAP

Thefollowingguidelinewaseffectiveatthereportingdate:

• Guide 1 Guideline on Accounting for Public Private Partnerships

Effective accrual based IPSASs

Effective accrual based IPSASs considering the provisions in paragraphs 15 to 19 of the

Directive:

• IPSAS20RelatedPartyDisclosures

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1 Summary of significant accounting policies (continued)

1.2 Functional and presentation currency

Theannualfinancialstatementshavebeenpreparedunderthehistoricalcostconvention,asmodifiedbytherevaluation

ofcertainfinancialassetsandliabilitiesatamortisedcostorfairvaluethroughsurplusordeficit.Thefinancialstatements

havebeenpresentedintheSouthAfricanRand(ZAR),asthisisthecurrencyinwhichthemajorityofthetransactionsare

denominated.

1.3 Change in Accounting Policy

Duringthefinancialyear, theAuthority implementedtheStandardonRevenue fromNon-exchangeTransactions (GRAP)

(GRAP23). This statementwasapprovedby theAccountingStandardsBoard (ASB)but itwasnot effective yet at the

reportingdatesincetheMinisterhadnotpublisheditseffectivedateintheGovernmentGazette.Inthepreviousfinancial

years, ICASA used the standard of GAAP AC134, Accounting for Government Grants and Disclosure of Government

Assistance. All government grants that related to the purchase of property, plant and equipment were deferred in liabilities as

deferredincomeandtheywerereleasedtothestatementoffinancialperformanceonasystematicbasisovertheestimated

useful lives of the assets concerned.

1.4 Significant judgements

Inpreparingtheannualfinancialstatements,managementisrequiredtomakeestimatesandassumptionsthateffectthe

amountspresentedintheannualfinancialstatementsandrelateddisclosures.Italsorequiresmanagementtoexerciseits

judgementintheprocessofapplyingtheAuthority’saccountingpolicies.Useofavailableinformationandtheapplication

of judgementare inherent in the formationofestimates.The fairvaluesoffinancial instrumentswithstandardtermsand

conditions and traded in active, liquid and organised financialmarkets are determinedwith reference to the applicable

quotedmarket prices. For other financial instrumentsmethods such as thediscounted cash flowanalysis, are used to

determinethefairvaluesofotherfinancialinstruments.Actualresultsinthefuturecoulddifferfromtheseestimateswhich

maybematerialtotheannualfinancialstatements.Significantjudgementsinclude:

1.4.1 Annual evaluation of property, plant and equipment and intangible assets

The Authority reviews its property, plant and equipment for possible impairment, changes in useful life and changes in

residualvaluesattheendofeachfinancialyear.

The management determines the estimated useful lives and related depreciation charges for property, plant and equipment

as well as its intangible assets. The estimates are based on the assessed conditions of the assets, changes in technology

such as new technical innovations being introduced in the industry thus rendering our assets obsolete as well as expected

futurespendingoncapitalassets.Theseestimatescanchangesignificantlyasaresultofchangesintheconditionsofassets,

introductionofnewtechnologiesandavailabilityoffinanceresourcestofundexpectedfuturespendingoncapitalassets.

Management will increase the depreciation charge where useful lives are less than previously estimated lives, or it will write-

off or write-down technically obsolete assets that have been abandoned or sold.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

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1.4.2 Provision for impairment of receivables

A provision for impairment of trade receivables is established when there is objective evidence that the Authority will not be

able to collect all amounts due according to the original terms of receivables. The allowance recognised is measured as the

differencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflows,wherethetimevalue

of money has a material impact, discounted at the effective interest rate computed at initial recognition. Any impairment is

recognisedimmediatelyinthestatementoffinancialperformance.

1.5 Government grants

TheAuthorityisfinancedfrommoneyappropriatedbyParliament.Allinflowsofresourcesfromanon-exchangetransaction

recognised as an asset are recognised as revenue, except to the extent that a liability is also recognised in respect of the

sameinflow.

All transactionsthatsatisfyapresentobligationrecognisedasa liability inrespectofan inflowofresourcesfromanon-

exchange transaction recognised as an asset, it reduces the carrying amount of the liability recognised and revenue equal

tothedeductionisrecognised.Revenuefromnon-exchangetransactionsismeasuredattheamountoftheincreaseinnet

assets.Apresentobligationarisingfromanon-exchangetransactionthatmeetsthedefinitionofaliabilityisrecognisedas

aliabilitywhenitisprobablethatanoutflowofresourcesembodyingfutureeconomicbenefitsorservicepotentialwillbe

required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The liability amount

recognised is the best estimate of the amount required to settle the present obligation at the reporting date. Non-exchange

revenue from taxes is only recognised when the taxable event occurs and the asset recognition criteria are met.

1.6 Property, plant and equipment

Property, plant and equipment (owned and leased) are stated at cost less accumulated depreciation and accumulated

impairment losses, if any. The cost of property, plant and equipment includes all directly attributable expenditure incurred

in the acquisition, establishment and installation of such assets so as to bring them to the location and condition necessary

for it to be capable of operating in the manner intended by management. Interest costs are not capitalised. Where an

item of property, plant and equipment is acquired at no cost, or for a nominal cost, its cost is its fair value at the date of

acquisition.

Depreciation is calculated so as to write off the cost of property, plant and equipment on a straight-line basis, over the

estimated useful lives to the estimated residual values. Useful lives, residual values and depreciation are reviewed annually

withtheeffectofanychangesinestimateaccountedforontheprospectivebasis.Residualvaluesaremeasuredasthe

estimated amount currently receivable for an asset if the asset were already of the age and condition expected at the end

ofitsusefullife.Eachsignificantcomponentincludedinanitemofproperty,plantandequipmentisseparatelyrecognised

and depreciated.

Depreciation commences when the asset is ready for its intended use. Depreciation of an asset ceases at an earlier of the

daytheassetisclassifiedasheld-for-saleinaccordancewithGRAP100orthedatetheassetisderecognised.

Properties in course of construction for production, rental or administrative purposes, or for any purposes not yet determined,

are carried at cost, less any recognised impairment losses.

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1 Summary of significant accounting policies (continued)

1.6 Property, plant and equipment (continued)

Assetsheldunderfinanceleasesaredepreciatedovertheirexpectedusefullivesonthesamebasisastheownedassetsor,

whereshorter,thetermoftherelevantleaseifthere’snoreasonablecertaintythatICASAwillobtainownershipattheend

of the lease term.

Repairsandmaintenanceactivities,whichneitherprolongnormateriallyaddtothevalueoftheassets,arerecognisedas

expenses in the period incurred. Minor plant and equipment items are also recognised as an expense during the period in

which they are incurred.

Surplusordeficitontheretirementordisposalofproperty,plantandequipment,beingthedifferencebetweentheactual

proceedsandthecarryingamountsoftheassets,arerecognisedinthesurplusordeficitintheperiodinwhichtheyoccur.

ThedisposaldateisdeterminedasthedateinwhichICASAhastransferredallthesignificantriskandrewardsofownership,

ICASA does not retain either continuing managerial involvement to the degree associated with ownership or effective control

overthegoodssold,proceedsonthesalescanbereliablymeasured,itisprobablethattheeconomicbenefitsassociated

withthetransactionwillflowtoICASAandthecostsincurredortobeincurredinrespectofthetransactioncanbereliably

measured.

Theassetsarederecognisedwhenthesignificantriskandrewardsofownershiptoathirdparty

Property, plant and equipment acquired in exchange for a non-monetary asset or assets is measured at fair value unless

the exchange transaction lacks commercial substance or the fair value of neither the asset received nor the asset given up

is reliably measurable. If the acquired item is not measured at fair value, its cost is measured at the carrying amount of the

asset given up

Where a lease contains a restoration clause, or where historical experience indicates that restoration costs will be incurred,

a liability for the restoration costs is recorded. The liability recorded is measured at the present value of the estimated future

restoration costs to be incurred.

The present value of the liability is capitalised to the underlying asset to which the restorations costs relate at the inception

of the restoration obligation. These amounts are amortised over the estimated useful life of the related asset. The restoration

liability is accreted to its future value over the lease period.

Item Useful life

Officeequipment 5-24 years

Computer equipment 5 – 24 years

Furnitureandfittings 8 -23 years

Motor vehicles 10 – 19 years

Test equipment 10 – 35 years

Leasehold improvements Over the period of the lease

Depreciation is calculated on the straight-line method to write off the cost less residual values of each asset over their

estimatedusefullivesasfollows:

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

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Thedepreciationchargeforeachperiodisrecognisedinsurplusordeficitfortheperiod.

1.7 Intangible assets

Acquired computer software licences are carried at cost less any accumulated amortisation and accumulated impairment

losses, if any. Amortisation on these costs is provided to write down the intangible assets, on a straight line basis, over their

usefullivesasfollows:

Item Useful life

Computer software 5 - 14 years

Expenditure on research is recognised as an expense when it is incurred.

Costs associated with developing or maintaining computer software programmes are recognised as an expense as incurred.

Costs that are directly associatedwith the development of identifiable and unique software products controlled by the

Authority, and thatwill probablygenerateeconomicbenefitsor servicepotential exceedingcostsbeyondone year, are

recognised as intangible assets. Costs include the employee costs incurred as a result of developing software and an

appropriate portion of relevant overheads. Amortisation commences when the intangible asset is available for use. Computer

software development costs recognised as assets are amortised over their estimated useful lives. Internally generated brands

are not recognised as intangible assets.

Surplusordeficitontheretirementordisposalofintangibleassets,beingthedifferencebetweentheactualproceedsandthe

carryingamountsoftheassets,arerecognisedinthesurplusordeficitintheperiodinwhichtheyoccur.Thedisposaldateis

determinedasthedateinwhichICASAhastransferredallthesignificantriskandrewardsofownership,ICASAdoesnotretain

either continuing managerial involvement to the degree associated with ownership or effective control over the goods sold,

proceedsonthesalescanbereliablymeasured,itisprobablethattheeconomicbenefitsassociatedwiththetransactionwill

flowtoICASAandthecostsincurredortobeincurredinrespectofthetransactioncanbereliablymeasured.

Amortisation commences when the intangible asset is ready for its intended use. Depreciation of an intangible asset

ceasesatanearlierofthedaytheassetisclassifiedasheld-for-saleinaccordancewithGRAP100orthedatetheassetis

derecognised. All intangible assets that arise from development are recognised ICASA can demonstrate that the technical

feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete the intangible

asset and use or sell it, its ability to use or sell the intangible asset, how the intangible asset will generate probable future

economicbenefitsorservicepotential,theavailabilityofadequatetechnical,financialandotherresourcestocompletethe

development and to use or sell the intangible asset and its ability to measure reliably the expenditure attributable to the

intangible asset during its development.

Theamortisationperiodandtheamortisationmethodforan intangibleassetwithafiniteuseful lifearereviewedateach

reporting date. If the expected useful life of the asset is different from previous estimates, the amortisation period is changed

accordingly.Iftherehasbeenachangeintheexpectedpatternofconsumptionofthefutureeconomicbenefitsorservice

potentialembodiedintheasset,theamortisationmethodischangedtoreflectthechangedpattern.

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1 Summary of significant accounting policies (continued)

1.7 Intangible assets (continued)

Theresidualvalueofanintangibleassetwithafiniteusefullifeareassumedtobezerounlessthereisacommitmentbya

third party to purchase the asset at the end of its useful life; or there is an active market for the asset and such residual value

canbedeterminedbyreferencetothatmarket;anditisprobablethatsuchamarketwillexistattheendoftheasset’suseful

life.Anintangibleassetisderecognisedondisposalofsuchintangibleassetorwhennofutureeconomicbenefitsorservice

potential are expected from its use or disposal.

1.8 Impairment of non-financial assets

Cash-generating assets that are subject to amortisation are reviewed for impairment whenever events or changes in

circumstances indicate that the carrying amount may not be recoverable at reporting date. An impairment loss is recognised

fortheamountbywhichtheasset’scarryingamountexceedsitsrecoverableamount.Therecoverableamountisthehigher

ofanasset’sfairvaluelesscoststosellandvalueinuse.Forthepurposeofassessingimpairment,assetsaregroupedat

thelowestlevelsforwhichthereareseparatelyidentifiablecashflows(cashgeneratingunits).

Non-cash generating assets are impaired when the amount by which the carrying amount of an asset exceeds its recoverable

serviceamount.Therecoverableserviceamountisthehigherofanasset’sfairvaluelesscoststosellanditsvalueinuse.If

the recoverable service amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to

its recoverable service amount. Such reduction of an asset to its recoverable amount is recognised as an impairment loss. All

intangibleassetswithanindefiniteusefullifeorintangibleassetsnotyetavailableforusearetestedforimpairmentannually

by comparing their carrying amount with their recoverable service amount.

At each reporting date, an assessment is carried out whether there is any indication that an impairment loss recognised in

prior periods for an asset may no longer exist or may have decreased. An impairment loss recognised in prior periods for an

assetisreversediftherehasbeenachangeintheestimatesusedtodeterminetheasset’srecoverableserviceamountsince

the last impairment loss was recognised. The carrying amount of the asset is increased to its recoverable service amount.

1.9 Financial instruments

FinancialassetsandfinancialliabilitiesarerecognisedinthestatementoffinancialpositionwhenICASAbecomesapartyto

the contractual provisions of the instrument.

ICASAclassifiesitsfinancialassetsinthefollowingcategories:

• Financialassetsatfairvaluethroughprofitorloss,

• Held-to-maturityinvestments,

• Available-for-salefinancialassets;and

• Loans and receivables

ICASA classifiesitsfinancialliabilitiesinthefollowingcategories:

• Financialliabilitiesatfairvaluethroughprofitorloss;and

• Financial liabilities at amortised cost.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

135

Section

Theclassificationoffinancialinstrumentsisdeterminedatinitialrecognitionitisbasedonthenatureandpurposeofeach

financialinstrument.

Principalfinancial instrumentscarriedonreportingdate includecashandcashequivalents, loansandotherreceivables,

financeleaseliabilities,tradereceivablesandtradeandotherpayables.

Financialassetsarerecognisedandderecognisedontrade-datewherethepurchaseorsaleofthefinancialassetisunder

a contract whose terms require delivery of the instrument within the timeframe established by the market concerned. All

financialassetsareinitiallymeasuredatfairvalue, includingtransactioncosts,exceptforthosefinancialassetsclassified

asatfairvaluethroughprofitorlosswhichareinitiallymeasuredatfairvalue,excludingtransactioncosts.Thefairvalueof

afinancialinstrumentoninitialrecognitionisnormallythetransactionpriceunlessthefairvalueisevidentfromobservable

market data.

Available-for-salefinancialassetsandfinancial instrumentsat fairvaluethroughprofitor lossaresubsequentlycarriedat

fair value. Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest

method, lessany impairment.Gainsand lossesarising fromchanges in the fairvalueof thefinancial instrumentsat fair

valuethroughprofitorlossareincludedintheincomestatementintheperiodinwhichtheyarise.Gainsandlossesarising

fromchangesinthefairvalueofavailable-for-salefinancialassetsarerecogniseddirectlyinequity,untilthefinancialasset

is derecognised or impaired, at which time the cumulative gain or loss previously recognised in equity is recognised in the

income statement as gains and losses from investment securities.

However, interestcalculatedonavailable-for-salefinancialassetsusingtheeffective interestmethod isrecognised inthe

income statement as part of interest income.

Thepurchasesandsalesoffinancial instruments that requiredeliverywithin the time frameestablishedby regulationor

market convention (regular way purchases and sales) are recognised at settlement date, which is the date the asset is

deliveredor received.Otherwisesuch transactionsare treatedasderivativesuntilsettlement.The fairvaluesoffinancial

assetsquotedinactivemarketsarebasedoncurrentbidprices.Thefairvaluesoffinancialliabilitiesquotedinactivemarkets

arebasedoncurrentask/offerprices.Alternatively,itderivesfairvaluefromcashflowmodelsorotherappropriatevaluation

modelswhereanactivemarketdoesnotexist.Theseincludetheuseofrecentarm’slengthtransactions,discountedcash

flowanalysis,optionpricingmodelsandothervaluationtechniquescommonlyusedbymarketparticipants.

1.9.1 Financial instruments at fair value through profit or loss

Thiscategoryhastwosubcategories:financialinstrumentsheldfortrading,andthosedesignatedatfairvaluethroughprofit

or loss at inception.

Afinancial instrument isclassifiedasheld for trading if it isacquiredor incurredprincipally for thepurposeofsellingor

repurchasing it in the near term, on initial recognition it is part of a portfolio of identified financial instruments that are

managedtogetherandforwhichthereisevidenceofarecentactualpatternofshorttermprofittaking,oritisaderivative

(exceptforaderivativethatisafinancialguaranteecontractoradesignatedandeffectivehedginginstrument).

5

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1 Summary of significant accounting policies (continued)

1.9 Financial instruments (continued)

1.9.1 Financial instruments at fair value through profit or loss (continued)

• Afinancialinstrumentisclassifieddesignatedatfairvaluethroughprofitorlossifuponinitialrecognitionitisdesignated

bytheentityasatfairvaluethroughprofitorloss.Thefinancialinstrumentsareclassifiedunderthissubcategorywhen

doingsoresultsinmorerelevantinformation,becauseeither:

• It eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as ‘an

accountingmismatch’) thatwouldotherwisearise frommeasuringassetsor liabilitiesor recognising thegainsand

losses on them on different bases,

• agroupoffinancialassets,financial liabilitiesorboth ismanagedand itsperformance isevaluatedona fairvalue

basis, in accordance with a documented risk management or investment strategy, and information about the group is

providedinternallyonthatbasistotheentity’skeymanagementpersonnel,

• or if a contract contains one or more embedded derivatives, the entire hybrid (combined) contract is designated as

afinancial assetor financial liabilityat fair value throughprofitor lossunless theembeddedderivative(s)doesnot

significantlymodify thecash flows thatotherwisewouldbe requiredby thecontract; or it is clearwith littleor no

analysiswhenasimilarhybrid(combined)instrumentisfirstconsideredthatseparationoftheembeddedderivative(s)is

prohibited, such as a prepayment option embedded in a loan that permits the holder to prepay the loan for approximately

its amortised cost.

1.9.2 Held-to-maturity investments

Held-to-maturityinvestmentsarenon-derivativefinancialassetswithfixedordeterminablepaymentsandfixedmaturitythat

anentityhasthepositiveintentionandabilitytoholdtomaturity.ICASAdoesnotclassifyanyfinancialassetsasheld-to-

maturityifithas,duringthecurrentfinancialyearorduringthetwoprecedingfinancialyears,soldorreclassifiedmorethan

aninsignificantamountofheldtomaturityinvestmentsbeforematurity(morethaninsignificantinrelationtothetotalamount

ofheld tomaturity investments)other thansalesor reclassifications thataresoclose tomaturityor thefinancialasset’s

calldatethatchangesinthemarketrateofinterestwouldnothaveasignificanteffectonthefinancialasset’sfairvalue,

occuraftertheentityhascollectedsubstantiallyallofthefinancialasset’soriginalprincipalthroughscheduledpaymentsor

prepaymentsorareattributabletoanisolatedeventthatisbeyondtheentity’scontrol,isnonrecurringandcouldnothave

been reasonably anticipated by the entity.

Held-to-maturityinvestmentsaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestratemethodlessany

impairmentloss.Interestincomeisrecognisedinprofitorlossbyapplyingtheeffectiveinterestrate

1.9.3 Available-for-sale financial assets

Availableforsalefinancialassetsarethosenon-derivativefinancialassetsthataredesignatedasavailable-for-saleorarenot

classifiedasloansandreceivables,heldtomaturityinvestmentsorfinancialassetsatfairvaluethroughprofitorloss

Thenetgainorlossrecognisedinprofitorlossincorporatesanygainsorlossesonre-measurementtransferredfromequity

toprofitorloss,dividendsandinterestincomeonthefinancialasset.Theseinvestmentsareclassifiedasnon-currentassets

unless management intends to dispose of the investments within twelve months of the balance sheet date.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

137

Section

1.9.4 Loans and receivables

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepayments thatarenotquoted inan

activemarketotherthanthosethattheentityintendstosellimmediatelyorinthenearterm,whichareclassifiedasheldfor

trading,andthosethattheentityuponinitialrecognitiondesignatesasatfairvaluethroughprofitorloss;thosethattheentity

upon initial recognition designates as available for sale; or those for which the holder may not recover substantially all of its

initialinvestment,otherthanbecauseofcreditdeterioration,whichshallbeclassifiedasavailableforsale.

Loans and receivables are subsequently measured at amortised cost using the effective interest rate method less any

impairmentloss.Interestincomeisrecognisedinprofitorlossbyapplyingtheeffectiveinterestrate,exceptforshort-term

trade receivables where the recognition of interest would be immaterial. Trade receivables are carried at original invoice

amount less any impairment loss.

1.9.5 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with short-term, highly liquid investments

of a maturity of three months or less from the date of acquisition that are readily convertible to a known amount of cash and

thataresubjecttoaninsignificantriskofchangesinvalue.Bankoverdraftsareshownwithinshort-termborrowingsincurrent

liabilitiesonthestatementoffinancialposition.Cashandcashequivalentsinthecashflowstatementandinthepresentation

ofnetdebtarereflectednetofoverdrafts.

Cash on hand is initially recognised at fair value and subsequently measured at its face value. Deposits held on call are

classifiedasloansandreceivablesbytheGroupandcarriedatamortisedcost.Duetotheshort-termnatureofthese,the

amortised cost normally approximates its fair value.

1.9.6 Trade and other receivables

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the

effective interest method, less provision for impairment. A provision for impairment of trade receivables is established when

there is objective evidence that the Authority will not be able to collect all amounts due according to the original terms of

receivables.Significantfinancialdifficultiesofthedebtoranddefaultordelinquencyinpaymentsareconsideredindicators

thatthetradereceivableisimpaired.Theamountoftheprovisionisthedifferencebetweentheasset’scarryingamountand

thepresentvalueofestimatedfuturecashflows,discountedattheoriginaleffectiveinterestrate.Theamountoftheprovision

isrecognisedinthestatementoffinancialperformancewithin‘operationalexpenditure’.

1.9.7 Trade and other payables

Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the

effective interest method.

5

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1 Summary of significant accounting policies (continued)

1.9 Financial instruments (continued)

1.9.8 Leases

Leasesareclassifiedasfinanceleaseswheneverthetermsoftheleasetransfersubstantiallyalloftherisksandrewardsof

ownershiptothelessee.Allotherleasesareclassifiedasoperatingleases.Operatingleasepaymentsarerecognisedasan

expense on a straight-line basis over the lease period. Minimum rentals that fall due after the end of the reporting period are

reflectedundercommitments

When an operating lease is terminated before the lease period has expired, any penalty incurred as a result is recognised as

an expense in the period in which termination occurs.

Assetsheldunderfinanceleasesarerecognisedasassetsoninceptionoftheleaseattheloweroffairvalueorthepresent

value of the minimum lease payments derived by discounting at the interest rate implicit in the lease. The interest element of

therentalischargedagainstprofitsoastoproduceaconstantyearlyrateofinterestontheremainingbalanceoftheliability,

unless it is directly attributable to qualifying assets, in which case it is capitalised in accordance with the general policy on

borrowing costs. The leased assets that qualify for recognition as assets are depreciated over their estimated useful lives in

accordancewithICASA’spolicyonproperty,plantandequipment.

1.9.9 Derecognition of financial instruments

Thefinancialassetsarederecognisedwhenthecontractualrightstotheassetexpires;orwherethereisatransferofthe

contractual rightstoreceivethecashflowsof thefinancialassetandsubstantiallyallof therisksandrewardsrelatedto

theownershipofthefinancialassetaretransferred;orICASAretainsthecontractualrightsoftheassetsbutassumesa

corresponding liability to transfer these contractual rights to another party and consequently transfers substantially all the

risksandbenefitsassociatedwiththeasset.

If a transfer does not result in derecognition because ICASA has retained substantially all the risks and rewards of ownership

ofthetransferredasset,ICASAcontinuestorecognisethetransferredassetinitsentiretyandrecognisesafinancialliability

for the consideration received. In subsequent periods, ICASA recognises any income on the transferred asset and any

expenseincurredonthefinancialliability.

Financial liabilities, or a portion thereof, are derecognised when the obligation specified in the contract is discharged,

cancelledorexpired.Onderecognition,thedifferencebetweenthecarryingamountofthefinancialliability,includingrelated

unamortisedcosts,andsettlementamountspaidareincludedinprofitorloss

1.10 Prepayments

Prepayments are recognised when ICASA has made a payment in advance in terms of the contractual obligations which

result in the decrease of liabilities or increase in expense or increase in assets in the future periods.

1.11 Provisions

Provisions are recognised when the Authority has a present legal or constructive obligation as a result of past events when

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

139

Section

itisprobablethatanoutflowofresourcesembodyingeconomicbenefitsorservicepotentialwillberequiredtosettlethe

obligation and a reliable estimate of the amount of the obligation can be made.

Provisions are measured at the present value of the expenditure expected to be required to settle the obligation using a

ratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheobligation.Long-term

provisions are discounted to net present value. The increase in the provision due to passage of time is recognised as interest

expense.

1.12 Retirement benefits

TheAuthority operates defined contribution plans, the assets ofwhich are held in trustee-administered funds. Pension

benefitsaremainlyprovidedbymembershipoftheGovernmentEmployeesPensionFund(GEPF).Contributionstothedefined

contributionplansinrespectofserviceinaparticularperiodareincludedintheemployees’totalcostofemploymentandare

chargedtothestatementoffinancialperformanceintheyeartowhichtheyrelateaspartofthecostofemployment.

TheAuthorityhasnolegalorconstructiveobligationtopayfurthercontributionsiftheGEPFdoesnotholdsufficientassets

topayallemployeesthebenefitsrelatingtoemployeeserviceinthecurrentandpriorperiods.

1.13 Termination benefits

Theterminationbenefitsarerecognisedasaliabilityinthebalancesheetandasanexpenseintheincomestatementwhen

ICASA has a present obligation relating to termination. ICASA has a present obligation when it is demonstrably committed to

either terminating the employment of current employees according to a detailed formal plan, without possibility of withdrawal

orprovidingterminationbenefitsasaresultofanoffertoencouragevoluntaryredundancy.

1.14 Leave pay provision

ICASArecognisesinfullemployees’rightstoannualleaveentitlementinrespectofpastservice.

1.15 Bonuses

Management and staff bonuses are recognised as an expense in staff costs as incurred when it is probable that the economic

benefitswillbepaidandtheamountcanbereliablymeasured. Bonuses are recognised when the Authority has a present

legal or constructive obligation as a result of past eventswhen it is probable that an outflow of resources embodying

economicbenefitsorservicepotentialwillberequiredtosettletheobligationandareliableestimateoftheamountofthe

obligation can be made

1.16 Contingent liabilities

The contingent liability is disclosed as a contingent liability when ICASA has a possible obligation arising from past events,

theexistenceofwhichwillbeconfirmedonlybytheoccurrenceornon-occurrenceofoneormoreuncertainfutureevents

not wholly within the control of the entity; or it has a present obligation that arises from past events but is not recognised

because:

5

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1 Summary of significant accounting policies (continued)

1.16 Contingent liabilities (continued)

• Itisnotprobablethatanoutflowofresourceswillberequiredtosettleanobligation;or

• Theamountoftheobligationcannotbemeasuredwithsufficientreliability.

1.17 Assets

ICASA recognises assets when it has a control of the resource as a result of the past events and from which future economic

benefitsorservicepotentialareexpectedtoflowtotheAuthority

1.18 Liabilities

ICASA recognises a liability when it has a present obligation as a result of past events and the settlement of which will be

expectedtoleadtoanoutflowofresourcesembodyingeconomicbenefitsorservicepotential.

1.19 Contingent assets

ICASAdisclosesacontingentassetwhere,asaresultofpastevents,itishighlylikelythateconomicbenefitswillflowtoit,

butthiswillonlybeconfirmedbytheoccurrenceornon-occurrenceofoneormoreuncertainfutureeventswhicharenot

wholly within the control of the Authority.

1.20 Administered Revenue on behalf of the National Revenue Fund

In terms of section 15(3) of the Independent Communication Authority of South Africa Act (Act No. 13 of 2000), the Authority

isrequiredtopayallfeesreceivedandheldontheirbehalftotheNRFwithin30daysafterreceiptofsuchrevenue.

SeparatebankaccountsareheldforthepurposeofcollectingtheserevenuesandpayingthemacrosstotheNRF.The

Authority has an obligation in terms of statute to administer these funds on behalf of National Treasury and to pay them

across within a prescribed time limit.

1.21 Interest received

InaccordancewithaNationalTreasurycommunication(dated12July2004)allinterestearnedonsurplusfundsandfunds

collectedonbehalfoftheNationalRevenueFundduringtheyeararerecognisedasrevenue.

Interest received is recognised on a time portion basis using effective interest method.

1.22 Taxation

No provision has been made for income tax as the Authority is exempted in terms of section 10(1) (cA) (1) of the Income Tax

Act1962(ActNo.58of1962).

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

141

Section

1.23 Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of

the transactions.

Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end

exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement,

exceptwhendeferredinequityasqualifyingcashflowhedgesandqualifyingnetinvestmenthedges.

Translation differences on non-monetary items are reported as part of the fair value gain or loss. Foreign currency translation

differencesonmonetary itemsclassifiedasavailable-for-salearenotreportedaspartofthefairvaluegainor lossinnet

assets,butarerecognisedasatranslationgainorlossinthestatementoffinancialperformancewhenincurred.

Translationdifferencesonnon-monetary items,classifiedasavailable-for-saleareincludedinthefairvaluereserveinnet

assets when incurred.

1.24 Irregular, Fruitless and Wasteful Expenditure

Fruitless and wasteful expenditure means expenditure that was made in vain and would have been avoided had reasonable

care been exercised. Irregular expenditure means expenditure incurred in contravention of or not in accordance with a

requirementofanyapplicablelegislationincluding:

- The Public Finance Management Act (PFMA)

- RegulationsissuedintermsofthePFMAbyNationalTreasury.

All irregular, fruitless and wasteful expenditure is charged against revenue in the period in which it is incurred.

1.25 Related parties

Alltransactionswheretheotherentityhastheabilitytocontrolanotherentityorexercisesignificantinfluenceovertheother

party inmakingfinancialandoperatingdecisionsor if therelatedpartyentityandanotherentityaresubjecttocommon

control, are classified as related party transactions. Related parties include instanceswhere ICASA , ICASAdirectly or

indirectly through one or more intermediaries, control, or are controlled by the reporting entity; associates; individuals owning,

directlyorindirectly,aninterestinthereportingentitythatgivesthemsignificantinfluenceovertheentity,andclosemembers

of the family of any such individual; key management personnel, and close members of the family of key management

personnel; and entities in which a substantial ownership interest is held, directly, or indirectly, described in or over which

suchapersonisabletoexercisesignificantinfluence.Arelatedpartytransactionisatransferofresourcesorobligations

betweenrelatedparties, regardlessofwhetheraprice ischarged.Significant influence is thepowertoparticipate in the

financialandoperatingpolicydecisionsofanentity,butnotcontrolthosepolicies.Significantinfluencemaybegainedbyan

ownership interest, statute or agreement.

5

142

1 Summary of significant accounting policies (continued)

1.26 Borrowing costs

Interestonborrowingsdirectly relating to the financingofqualifyingcapital projectsunderconstruction is added to the

capitalised cost of those projects during the construction phase, until such time as the assets are substantially ready for their

intendeduseorsale.Wherefundshavebeenborrowedspecificallytofinanceaproject,theamountcapitalisedrepresents

theactualborrowingcostsincurred.Wherethefundsusedtofinanceaprojectformpartofgeneralborrowings,theamount

capitalised is calculated using a weighted average of rates applicable to relevant general borrowings of ICASA during the

construction period.

1.27 Revenue from non-exchange transactions

Revenuefromnon-exchangetransactionsrelatestoallrevenuetransactionswhereICASAreceivesvaluefromanotherentity

without directly giving approximately equal value in exchange.

1.28 Revenue from exchange transactions

RevenuefromexchangetransactionsrelatestoallrevenuetransactionswhereICASAreceivesvaluefromanotherentityafter

directly giving approximately equal value in exchange

RevenuefromthesaleofgoodsisrecognisedwhenICASAhastransferredtothepurchaserthesignificantrisksandrewards

of ownership of the goods; ICASA retains neither continuing managerial involvement to the degree usually associated with

ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the

economicbenefitsorservicepotentialassociatedwiththetransactionwillflowtotheentityandthecostsincurredortobe

incurred in respect of the transaction can be measured reliably.

Revenuefromrenderingofservicesisrecognisedwhentheoutcomeofatransaction involvingtherenderingofservices

canbeestimatedreliably.Revenuefromrenderingofservicesisrecognisedbyreferencetothestageofcompletionofthe

transaction at the reporting date. The outcome of a transaction can be estimated reliably when the amount of revenue can

bemeasuredreliably;itisprobablethattheeconomicbenefitsorservicepotentialassociatedwiththetransactionwillflow

to the entity; the stage of completion of the transaction at the reporting date can be measured reliably; the costs incurred for

the transaction and the costs to complete the transaction can be measured reliably.

Interest income is recognised using the effective interest ratemethod. Royalties are recognised as they are earned in

accordancewiththesubstanceoftherelevantagreement.DividendsorsimilardistributionsarerecognisedwhenICASA’s

right to receive payment is established.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

143

Section

Note

31 March

2010

R

Actual

31 March

2009

R

Restated

2 Revenue from non-exchange transactions - Total grants appropriated

Original allocation from Department of Communications (“DoC”)

Budget vote

269 607 000

247272000

ICASA receives its funding from the Department of Communications in order to enable it to carry out its mandate as laid out

in the ICASA Act.

3 Change in accounting policy

Duringtheyear,ICASAimplementedGRAP23,Revenuefromnon-exchangecontracts.Thisstatementhasalreadybeen

approved by the Accounting Standards Board (ASB) but it is not effective yet since the Minister of Finance has not yet

published the effective date of this statement in accordance with section 91(1)(b) of the Public Finance Management Act,

Act No. 1 of 1999, as amended. Previously, ICASA recognised all grants received from the Department of Communications

inaccordancewiththeAccountingStatementAC134,AccountingforGovernmentGrantsandDisclosureofGovernment

Assistance.Thegrantsrelatedtoassetsweredeferredandtheywererecognisedinprofitorlossonasystematicbasisover

theusefullifeoftheasset.Thefinancialstatementsforthe2008/9financialyearhavebeenamendedtoreflecttheeffectsof

thechangeinaccountingpolicy.Theeffectofthischangeinaccountingpolicywasasfollows:

Impact on the financial statements as at 1 April 2008

Impact on the statement of financial position

R

Decrease in deferred grants liability 86678386

Increase in accumulated surplus (86678386)

-

Impact on financial statements as at 1 April 2009

Impact on the statement of financial performance

R

Increase in grants received (6777251)

Increaseinnetsurplus/deficitfortheperiod (6777251)

5

144

Effect on statement of financial position

R

Decrease in deferred grants liability 93455637

Increase in accumulated surplus (93455637)

-

4 Prior period error

4.1 Start-up fund

Duringthe2009/10financialyearitwasdiscoveredthatICASAhadaccountedforthestart-upfundincorrectly.Intermsof

section 20(1) of the Independent Communication Authority of South Africa Act (Act No.13 of 2000), “All assets, rights and

obligations which immediately before the establishment date (of ICASA) vest in the former authorities pass to the Authority on

that date.” Accordingly this start-up fund, which arose from the transfer of assets to the South African Telecommunications

RegulatoryAuthority(SATRA)bytheDepartmentofCommunications(DoC)witheffectfrom1April1997,wastransferredto

ICASA on 1 July 2000.

The effects of this transaction were treated separately as a non-distributable reserve in the accounting records of ICASA and

notaspartoftheaccumulatedsurplus.GRAP1,paragraph44readsasfollows:

“All balances in reserves and trust fund accounts that are not represented by cash, for example the loss of rental reserves,

capitalreserves,Mayor’sFloodReliefFund,SportDevelopmentFund,etc.,onthedateoftransitionshouldbetransferred

totheopeningbalanceoftheaccumulatedsurplus/(deficit)accountinthestatementofchangesinnetassets.Thereisno

legislative requirement to maintain such separate fund accounts.”

Impact on the financial statements as at 1 April 2008

Impact on deferred grants liability and accumulated surplus

R

Decrease in start-up fund 33731342

Increase in accumulated surplus (33731342)

-

4.2 Assets previously carried at nil

Duringthefinancialyear,someassetsthathadbeenpreviouslycarriedatzerovalueinthestatementsoffinancialpositionof

thepriorfinancialyearswereallocatedfairvalues.Thisledtotheincreaseinthebalanceofproperty,plantandequipment

aswellthebalanceofaccumulatedsurplusofR2869306.Alltheseassetsarestillinexistenceandtheyarealsostillinuse.

The actual dates of the acquisition of these assets could not be ascertained since they were acquired more than 10 years

agobeforethemergeroftheIBAandSATRA.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

145

Section

Impact on the financial statements as at 1 April 2009

Impact on the property, plant and equipment and accumulated surplus balances

R

Increase in property, plant and equipment balances 2869306

Increase in accumulated surplus (2869306)

-

Increase in accumulated depreciation (339966)

Decrease in accumulated surplus 339966

-

Impact on accumulated depreciation and accumulated surplus

R

Increase in depreciation (339966)

Decreaseinsurplus/(deficit)fortheperiod (339966)

Impact on the statement of financial performance

4.3 Impairment of property, plant and equipment

Ageneratorwasacquiredinthepriorfinancialyearwasdiscoveredtobeimpairedduringthefinancialyear.Thisgenerator

had been acquired with the sole purpose of ensuring that the Authority would continue to operate unhindered during the

periods of power outages. A service provider was engaged to assess the condition of the generator and it was discovered

thatthemanypartsofthegeneratorwereimpaired.AnimpairmentlossamountingtoR423045hasbeenrecognisedinthe

annualfinancialstatements.Attheendofthefinancialyear,nofirmlegalactionhadbeentakenagainstthesupplierofthe

generatoryet.ThisfurtherledtothereversalofaccumulateddepreciationtotallingR83732inthe2008/9financialyear.

Effect on the financial statements as at 1 April 2009

R

Decrease in depreciation 83 732

Increaseinsurplus/(deficit)fortheperiod 83 732

Accumulated depreciation

R

Decrease in accumulated depreciation 83 732

Increase in accumulated surplus (83 732)

-

5

146

4.4 Inclusion of Administered Revenue section’s assets and liabilities in the Main Account Financials

Duringthefinancialyear,ICASAwasgivenadirectivebyNationalTreasurytoincludetheassetsandliabilitiesofitsAdministered

Revenuesectioninitsownsetofannualfinancialstatements.Theeffectofthischangeinaccountingpolicywasasfollows:

Effect on the financial statements as at 1 April 2009

Effect on trade and other payables

R

Increaseinunidentifiedreceipts 847362

IncreaseinNRFpayables 571738654

Increase in other payables 67129

572653145

Effect on trade and other receivables

R

Increase in trade receivables 579943988

Increase in provision for impairment (24109351)

555834637

Effect on cash and cash equivalents

R

Increase in cash and cash equivalents 16818508

AllmoniescollectedbytheAdministeredRevenuesectionarepaidovertotheNationalRevenueFundwithin30daysoftheir

collection.

For thefinancialyearsupto31March2006, ICASApreparedasetofannualfinancialstatements for theMainAccount

andalsoincludedtheassetsandliabilitiesoftheAdministeredRevenuesectioninthosefinancialstatements.However,the

ICASAreceivedaemphasisofmatteronthemannerinwhichittreatedtheassetsandliabilitiesoftheAdministeredRevenue

section.Theemphasisofmatterreadasfollows:“ICASAwasresponsiblefortheadministrationandcollectionoffeeson

behalfoftheNationalRevenueFund(NRF).Althoughintermsoftheaccountingpolicyonlycashwasdisclosed,accountability

anddisclosurewouldbeenhancedifseparateadministeredrevenueannualfinancialstatementswerepresented.Referto

theaccountingofficer’sreportrelatingtoasettlementofadisputeICASAandalicensee.”

Inthefinancialyearsfrom31March2007uptoandincluding31March2008,ICASAhadbeenpreparingaseparatesetof

annualfinancialstatementsfortheAdministeredRevenuesectioninlinewiththe31March2006auditopinion.Ithadbeen

agreedthatthepreparationofaseparatesetoffinancialstatementsfortheAdministeredRevenuesectionwouldenhance

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

147

Section

accountabilityanddisclosureofannualfinancialstatements.Itwasforthatreasonthataseparatesetoftheannualfinancial

statementswaspreparedfortheAdministeredRevenuesection.However,theauditorsobtainedatechnicalopinionafter

March2009anditstatedthatICASAwillhavetoincorporatetheassetsoftheAdministeredRevenuesectionintoitsown

setofannualfinancialstatements.Duetothefactthattheseinstructionswerereceivedverylate,permissionwassought

fromNationalTreasurytopreparetwoseparatesetsofannualfinancialstatementsforthe31March2009financialyear.This

permissionwasgrantedandICASAwasinstructedtoincludeitsassetsandliabilitiesinitsfinancialstatementsfortheyear

ended 31 March 2010. ICASA receives separate funding from National Treasury to fund its operations.

Thesummaryoftheimpactofthepriorperioderrorasat1April2008isasfollows:

R

Decrease in start-up fund 33731342

Increase in accumulated surplus (33731342)

-

Theimpactofthepriorperioderroronfinancialstatementsat1April2009isfollows:

• Assetspreviouslycarriedatnil

R

Increase in property, plant and equipment balances 2869306

Increase in accumulated surplus (2869306)

Increase in accumulated depreciation (339966)

Decrease in accumulated surplus 339966

R

Increase in depreciation (339966)

Decreaseinsurplus/(deficit)fortheperiod (339966)

• Impairmentofproperty,plantandequipment

R

Decrease in depreciation 83 732

Increaseinsurplus/(deficit)fortheperiod 83 732

R

Decrease in accumulated depreciation 83 732

Increase in accumulated surplus (83 732)

5

148

Note

31 March

2010

R

Actual

31 March

2009

R

Restated

• InclusionofAdministeredRevenuesection’sassetsandliabilitiesintheMainAccountFinancials

R

Increaseinunidentifiedreceipts 847362

IncreaseinNRFpayables 571738654

Increase in other payables 67129

572653145

Effect on trade and other receivables

R

Increase in trade receivables 579943988

Increase in provision for impairment (24109351)

555834637

Increase in cash and cash equivalents 16818508

5 Other income

Income from exchange transactions

Bid handling fee 4 500 16550

Other 46 438 289488

Interest received from Administered 10 488 912 11 857 800

Revenue 10 539 850 12163838

Income from non-exchange transactions

Donations - 406640

Insurance claim payouts 598 869 322602

Insurance claims settles 598 869 729242

The donations were in respect of motor vehicles that were transferred from the Department of Communications to ICASA.

Total income from exchange and non-exchange transactions

Other income 11 138 719 12 893 080

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

149

Section

Note

31 March

2010

R

Actual

31 March

2009

R

Restated

6 Administrative expenses

General and administrative expenses 1 499 205 1 252 780

Travel and subsistence 9 682 216 9 135 225

Netforeignexchangedeficits 7 081 155

Insurance 811 773 414684

Printing and stationery 2 549 935 1688175

Publications 1 669 514 1 793 195

Publicity and advertising 4 498 860 7065271

Recruitmentcosts 1 516 166 1 527 830

Telephone postage and fax 6 173 126 5 975 800

Training and conferences 7 848 047 8354895

36 255 923 37 208 010

7 Staff costs

Council’sandExecutiveManagement’sremuneration 8 16 718 076 16162116

Salaries and wages 133 248 931 109 285 880

- Salaries 100 823 741 84149359

- Performance awards 7 370 734 7979656

- Periodic payments 7 077 496 6056807

- Temporary staff 238 539 716541

- Leave expenses 2 325 165 (2 095 900)

- Overtime pay 1 131 456 1041099

-Definedcontributionplanexpense 14 281 800 11438318

Socialcontributions(Employer’scontribution) 8 290 374 7405503

- Medical aid 7 336 977 6563881

- UIF 590 572 521 732

-Workman’scompensation 362 825 319 890

- Long-service awards 783 000 463000159 040 381 133316499

5

150

8 Council’s and Executive Management’s remuneration

Detailsofremunerationpaidareasfollows:

Council Date of

Appointment

Date of

Resignation/

End of Term

Remuneration 31 March 2010

R

*Actual

31 March 2009

R

*Restated

P Mashile 01/07/2005 1 221 575 1 077 132

T Cohen 01/07/2004 30/06/2008 - 255269

ZRMasiza 01/07/2004 30/06/2008 - 246011

RNkuna 18/10/2006 934870 829 283

BB Ntombela 01/11/2006 934870 829 283

JCWVanRooyenSC 01/01/2007 934870 747466

MM Socikwa 01/04/2007 934870 829 283

M Zokwe 01/07/2005 30/06/2009 230264 829 283

NA Batyi 04/08/2008 934870 567392

TLV Makhakhe 10/07/2008 934870 619770

FK Sibanda 01/10/2008 934870 438646

WF Stucke 30/11/2009 551 097 -

TOTALS 8547026 7268818

*Council remuneration is at cost to company and they do not receive performance bonuses.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

151

Section8

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5

152

31 March

2010

R

31 March

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RActual Restated

8 Council’s and Executive Management’s remuneration (continued)

SummaryofCouncilandExecutiveManagement’sremuneration

Council 8 547 026 7268818Executive Management 8 171 050 8 893 298

16 718 076 16162116

9 Audit fees

- External audit 1 602 727 2153768

10 Other operating expenses

Consultants, contractors and special services 21 933 869 18499468

Equipment items expensed 244 492 188 079

Legal fees 8 430 063 4130424

Maintenance repairs and running costs

- Property and buildings 286 436 248297

- Machinery and equipment 1 917 121 1 230 538

- Motor vehicles 1 847 165 2068666

- Other maintenance and repairs 2 339 540 2552616

Information technology 4 355 941 5133924

Bank charges 226 035 168216

Rentalinrespectofoperatingleasesandotherrelatedexpenses

- Rentalofbuildings 31 693 324 27106149

- Lights and water 1 252 554 1429052

Ratesandtaxes- 1 223 136 833 227

Garden maintenance- 79 373 70 705

Officecleaning- 1 025 572 883 089

Security costs- 2 253 749 1163058

- Equipment 557 700 (51741)

Loss on disposal of property, plant and equipment 1 155 833 1067346

Transaction costs 1 014 044 1 299 003

Associations 1 608 874 1432538

Other 1 765 756 1416667

Impairment loss 423 045 -85 633 622 70869321

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

153

Section

Note

31 March

2010

R

Actual

31 March

2009

R

Restated

11 Finance costs

Interestexpensepaidonfinanceleases 3 343 61043

Interest – other 2 491 201615 834 81204

12 Finance income

Interest received from cash and cash equivalents

4 688 307 7260940

4 688 307 7260940

Reconciliationofinterestreceivedtothecashflowstatementinterest:

Interest as disclosed above 4 688 307 7260940

InterestreceivedfromAdministeredRevenue 10 488 912 11 857 800

Interest accrued at year end (354 085) (783 975)

Interest accrued in the prior year 783 975 1 007 29315 607 109 19342058

13 Fruitless, wasteful and irregular expenditure

Thereconciliationofthebalanceoffruitlessandwastefulexpenditureisasfollows:

Opening balance 39 570 -

Current year movements 2 487 39 57042 057 39 570

TheamountofR39570wascondonedsubsequenttoyear-end.

5

154

Note

31 March

2010

R

Actual

31 March

2009

R

Restated

13 Fruitless, wasteful and irregular expenditure (continued)

The reconciliation of the irregular expenditure balance at the end of the financial year is as follows:

Opening balance 387 081 -

Current year movements 268 545 387 081655 626 387 081

TheamountofR387081wascondonedsubsequenttoyearend.

Included in expenditure per the statement of financial performance is the following:

Fruitless and wasteful expenditure

Motor vehicle licences - 264

Other penalties - 22862

Interest costs 2 487 164442 487 39 570

Irregular expenditure

Technical equipment 4 600 -

Postage costs 18 069 -

Payroll costs 115 439 -

Courier services costs 15 669 -

Library costs 5 184 -

Firefightingequipment - 2896

Information Technology costs 109 585 16359

Employee wellness costs - 154482

Payroll project - 88 237

Leasehold improvements - 12 882

Time management system - 25 951

Media monitoring service - 4696

Data backup and recovery service - 10 531

Advertising costs - 71047268 546 387 081

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

155

Section

13 Fruitless, wasteful and irregular expenditure (continued)

31 March 2010

Fruitless and wasteful expenditure

Interest costs

InterestcostswereincurredontheTelkomaccountaswellastheOfficeaccountandtheamountsconcernedwereR2397

andR90respectively.TheinterestonTelkomwasduetothelatesubmissionofinvoicesforpaymentwhileinterestonthe

PostOfficeaccountwasmainlyduetotheunreasonablepaymenttermsof7days.Thepaymenttermsweresubsequently

negotiated with the service provider.

31 March 2010

Irregular expenditure

Technical equipment costs

The Durban Regional Office procured goods totalling R4 600 without following the centralized request for quotation

process.

Postage costs

TheAdministrationDivisionprocuredmailroomservicestothevalueofR18069withoutfollowingthecentralisedrequestfor

quotation process.

Payroll costs

The Finance department procured temporary staff through the recruitment process but the costs escalated to a value above

R200000withouttheBidAdjudicationCommittee’s(BAC)approval.TheexceededamountwasnotapprovedbytheBAC.

Information technology costs

• TheInformationTechnologydepartmentengagedaserviceproviderforprocurementofHP36GB,15K,SCSIHDD

requesting the Bid Adjudication Committee to approve additional requirements from the existing contract. The amount

involvedinthisregardwasR3420.

• TheInformationTechnologydepartmentengagedBytesTechnologiestosupplyH251NUSBHeadsetwithoutfollowing

procurement process. The equipment was bought without going through the SCM request for quotation process. The

amountinvolvedinthisregardwasR31108.

5

156

13 Fruitless, wasteful and irregular expenditure (continued)

Irregular expenditure (continued)

• The serviceproviderwas requestedby theAdministrationDivision to supply fibremultimade trayswithout going

throughtheSupplyChainManagementunitrequestforquoteprocess.TheamountinvolvedwasR68157.

Courier services costs

TheAdministrationDivisionprocuredtheservicesofacouriercompanyforR15669withoutrequestingquotesthroughthe

supply chain management unit.

Library costs

TheAdministrationDivisionprocuredservicesfromanexpiredcontract.ThetotalamountinvolvedwasR5184.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

157

Section14

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NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

159

Section

31 March

2010

R

Actual

31 March

2009

R

Restated

15 Intangible assets

Cost

Opening balance 8 410 805 7464765

Additions 2 773 147 943138

Fairvaluechangesofassetspreviouslycarriedatzero - 2 902

Closing balance 11 183 952 8410805

Accumulated amortisation

Opening balance (5 634 388) (4536220)

Amortisation 87 920 (1098168)

Transfers 3 656 -

Closing balance (5 542 812) (5634388)

Closing net book amount 5 641 140 2776417

ICASA’sobligationunderfinanceleasesissecuredbythelessor’stitletotheleasedassets.

16 Trade and other receivables

Staff receivables 1 139 928 1055143

Less:Impairmentofstaffreceivables (84 756) (170 875)

Net staff receivables 1 055 172 884268

Interest receivable - 783976

Other receivables 401 661 1215691 456 833 1 789 813

Impairment of receivables

Opening balance

170 875 185348

Impairments recognised (86 119) 30 959

Impairments recovered - (45432)

Closing balance 84 756 170 875

As at 31 March 2010, the carrying values of trade and other receivables were estimated to approximate their fair values.

5

160

31 March

2010

R

Actual

31 March

2009

R

Restated

16 Trade and other receivables (continued)

As of 31 March 2010, trade receivables of R 59 772(2009:R30959)wereimpairedandprovidedfor.Theamountofthe

provision was R84 756asof31March2010(2009:R170875).Theagingoftheprovisionforimpairmentat31March2010

wasasfollows:

Amounts in 30 days 19 428 -

Amountsin61to90days - 419

Amounts in 91 days + 65 328 170456

84 756 170 875

As at 31 March 2010 accounts receivable totalling R831 747(2009:R570211)werepastduebutnotimpaired.Theserelate

to a number of independent staff debtors for whom there is no recent history of default.

Theagingofthesereceivablesisasfollows:

Amounts in 30 36 191 17 378

Amountsin61to90days - 864

Amounts in 91 days + 795 556 551969

831 747 570 211

The above-mentioned receivables mainly related to bursaries, standing advances, travel and cellular phones. The bursaries are

recouped when the staff member stops studying, leaves the employment of the Authority or changes the course that the person

was initially sponsored for. The employee is expected to serve a term equivalent to the term sponsored. Standing advances

relatetoamountsadvancedtoemployeeswhoarenotoffice-boundandarerepayablewhentheemployeeresigns.

Travel and cell phone debtors refer to amounts that the employee owes the Authority after a business trip or for excess/

personal usage of the cell phone provided to the employee by the Authority. Normally no impairment is provided for on these

amountsastheseamountsarerecoveredfromemployeesonaregularbasis.However,ininstanceswheretheemployee

might have left the organisation before these amounts are settled in full and all possible avenues to recover these amounts

have been exhausted. All staff receivables are entered into with the employees of the Authority who are in employment of

ICASA. The employees sign contracts for bursaries, standing advance and cell phones which give the Authority the right to

deduct outstanding amounts. For training related international travel, employees sign letters that gives the Authority the right

to deduct such amounts should employees decide to leave before the stipulated period of time.

Asat31March2010RNil(2009:RNil)oftradeandotherreceivablesweredenominatedinforeigncurrencies.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above.

The Authority does not hold any collateral as security.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

161

Section

31 March

2010

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Actual

31 March

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R

Restated

16 Trade and other receivables (continued)

Theratingofgrosstradeandotherreceivableswasasfollows:

Highrisk - -

Medium risk 1 541 589 1960688

Low risk - -1 541 589 1960688

The trade and other receivables balances are considered to be medium risk because they are mainly granted to staff

members and these are normally directed directly from the employees. Dealings outside ICASA are normally with reputable

institutions with good credit ratings.

17 Prepayments

Insurance 304 096 -

Officerental 3 109 090 2951124

Computer equipment, motor vehicles, furniture, software guarantees and others

1 118 299 5132104

4 531 485 8 083 228

18 National Revenue Fund – Administered Assets

AccountsreceivableduetoNationalRevenueFund:

Accruals for licence fees 491 119 453 529532618

Spectrum receivables 34 706 664 24450119

ECS and ECNS receivables 1 848 214 25585148

Broadcasting receivables - 376103527 674 331 579943988

Provision for impairment (31 393 047) (24109351)496 281 284 555834637

Accruals for licence fees relates to the accrual for all licences that were due at the end of the reporting period but were

only due for settlement after the end of the reporting period. These are based on either the actual results of the licensee,

wherethelicenseehasfinaliseditsfinancialstatements.Ininstanceswhereactualresultsarenotavailableattheendofthe

reportingperiod,thelicenseesubmitstheexpectedfinancialresults.

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Restated

18 National Revenue Fund – Administered Assets (continued)

The spectrum receivables relate to the balances that were due by spectrum licensees but had not been settled at the end

of the reporting period. These relate to different licences that are awarded for different spectrum frequencies. In terms of the

RadioRegulations,licencesarevalidfromthe1st of January to the 31st of December of each year. These licences have to be

settled on the 31stofJanuaryeachyear.Ininstanceswherelicencesareawardedduringthecourseofthefinancialyear,the

invoices for the spectrum licensees are pro-rated.

ForallspectrumlicencesbilledatthebeginningofJanuaryeachyear,theamountthereofissplitbetweenthetwofinancial

periods to which these amounts relate.

ECS and ECNS receivables relate to all the amounts that had been billed to but not settled by the Electronic Communications

and the Electronic Communications Network licensees.

The broadcasting receivables relate to all the outstanding licence fees for broadcasting licences.

Theagingofthetradeandotherreceivablesbalanceswasasfollows:

Current 491 119 453 529532618

31-60days 21 485 258 12468144

61-90days 5 093 664 -

Greater than 120 days 9 975 956 37943226527 674 331 579943988

The licencesaregranted to variouscustomerswith verydifferent creditprofiles.These include successfulmultinational

corporations,SouthAfricancorporationswithoperationsinmanycountries,bigsecuritycompanies,manymediumsized

entitiesandothersmallentities.Thecreditprofilesoftheseentitiesvarysignificantlyandintermsofthelegislation,ICASA

cannot refuse any entity licences due to its credit rating. Despite the fact that no credit vetting takes place, all licensees are

granted licences after they have lodged their applications with ICASA. In instances where the licensee fails to comply with

its licence condition which includes payments terms, the licensee is taken to the CCC Committee or has their equipment

sealed.

19 Cash and cash equivalents

Cash and balances with banks

- Current accounts 37 984 576 27 321 083

- Short-term deposits 17 454 640 34370866

Cash on hand 20 208 21964

AdministeredRevenuecashbalance 25 684 928 1681850881 144 352 78532421

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

163

Section

31 March

2010

R

Actual

31 March

2009

R

Restated

19 Cash and cash equivalents (continued)

The cash and cash equivalents balances as disclosed above did not include any restricted cash nor did the Authority have

any borrowing facilities at the end of each reporting period. Included above is R25 684 928 (2009:R16818508)forthe

AdministeredRevenuesection.ThefundsreceivedcollectedbytheAdministeredRevenuesectionaretransferredtothe

NationalRevenueFundthroughtheDepartmentofCommunications.ICASAdoesnothavetherighttowithholdthesefunds

orusethemforanyotherpurposeitmaydeemfit.Thecashandcashequivalentsareplacedwithhighcreditqualityfinancial

institutions.

20 Trade and other payables

Trade payables 3 912 493 5549374

Accrued expenses 14 307 091 6718945

Bonus accrued 9 223 104 1667191

Leave liability accrued 5 064 842 3542685

Other 173 541 16734032 681 071 17645535

ThefairvalueoftradeandotherpayableswasR32681071(2009:R17645535).Theamountsincludedintradeandother

payables are not secured. The fair values of trade and other payables approximate their fair values.

21 National Revenue Fund payables

Unidentifiablereceipts 1 097 628 847362

NRFPayables 520 626 433 571738654

Other 242 152 67129

TradeandotherpayablespayabletoNRF 521 966 213 572653145

22 Operating lease liability

Current portion of operating lease liability– included in current liabilities 22 653 6369988

Non-current portion of operating lease liability – included in non-current

liabilities

- 22653

Net operating lease liability – to be released over the period of the leases 22 653 6392641

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31 March

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R

Restated

23 Operating lease arrangements

At 31 March 2010 outstanding commitments existed under non-cancellable

operatingleaseswhichfalldueasfollows:

Up to 1 year 16 421 660 15 588 187

2 to 5 years - 153338416 421 660 17 121 571

Theoperatingleasesenteredintorepresentarrangementstoleaseofficepremisesandcertaincomputerequipment.The

operatingleasecommitmentscomprisecashflowcommitments.

The terms of the leases vary with expiry dates between 30 April 2010 and 31 October 2010. Escalation clauses range

between 8 and 15 percent depending on the lease agreements. At 31 March 2010 the Authority had no commitments under

non-cancellable operating leases as lessor.

24 Finance lease obligations

Currentportionoffinanceleaseobligations: - 173677

Non-currentportionoffinanceleaseobligations: - -- 173677

Reconciliationbetweenthetotaloftheminimumleasepaymentsandthepresentvalue:

31 March 2009 Up to 1 year 2 - 5 years Total

Instalments 177 020 - 177 020

Finance costs (3 343) - (3 343)

Present value 173 677 - 173 677

Thefinanceleasecontractwasinrelationtothemulti-purposecopiersthattheAuthorityhadleasedfromaserviceprovider.

The lease contract expired in June 2009.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

165

Section

31 March

2010

R

Actual

31 March

2009

R

Restated

25 Reconciliation of surplus to cash utilised in operations

Surplus for the year 6 210 939 12 100 829

Adjustedfor: 3 905 218 (60994089)

- Depreciation (3 227 480) 10 598 221

- Amortisation (87 920) 1098168

- Finance income 10 (15 607 109) (19342058)

- Finance costs 9 5 834 81204

-Deficitondisposalofpropertyplantandequipment 1 155 833 1067346

Impairment of property, plant and equipment- 423 045 -

- Decrease in lease liabilities (6 369 988) (6945755)

- Decrease in receivables and prepayments 3 798 606 1583514

Decrease in provision for impairment- 86 119 14473

-Decrease/(increase)inAdministeredRevenueAssets 59 553 353 (41444745)

- Increase/(decrease) in payables 15 035 535 (4042724)

DecreaseinAdministeredRevenue’sliabilities- (50 686 933) (3018124)

-Decreaseinfinanceleaseliability (173 677) (643609)

Cash generated from/(utilised in) operations 10 116 157 (48893260)

26 Contingent liabilities

TheAuthority’sdecisionsareoftenchallengedthroughthelegalsystem.Thereareanumberofongoinglegalcaseswhich

theAuthorityisintheprocessofdefendingorinstituting.Thefinaloutcomecannotbereliablydeterminedasitisdependent

onthestrengthofbothparties’caseandtheJudiciary’sfindings.Acontingentliabilityisnotedforlegalcasesthatmayhave

unfavourable decisions.

Contingent liabilities - various legal cases 4 180 000 3 159 332

5

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R

Actual

27 Reconciliation of budget surplus with the surplus in the statement of financial performance

Surplusfortheperiodasperthestatementoffinancialperformance 6210939

Adjustedfor: (6210939)

Government grants – underbudget 10 000 000

Other income - underbudget 717086

Administrative expenses – overbudget 1908065

Staff costs - overbudget 18843217

Audit fees (327 273)

Other operating expenses – underbudget (17516356)

Depreciation – underbudget (14036868)

Amortisation – underbudget (1116337)

Finance income – overbudget (4688307)

Finance costs – overbudget 5834

Netsurplus/deficitperapprovedbudget -

28 Related party relationships and transactions

The Independent Communications Authority of South Africa (ICASA) is a Schedule 1 entity in terms of the Public Finance

ManagementAct(PFMA).TherelatedpartydisclosureisrequiredintermsofAC126,relatedpartydisclosuresthespecific

guidance given by the South African Institute of Chartered Accountants.

ICASA’srelatedpartiesconsistofgovernmentdepartments,state-ownedenterprises,publicentitiesinthenationalsphere

ofgovernment,closefamilymembersofrelatedpartiesandkeymanagementpersonnelatICASA.Refertonote8forall

transactions between ICASA and key management personnel. During the year all the transactions that the Authority entered

intowereonanarm’slengthbasis.

Therewasnoconflictofinterestinprocurement.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

167

Section

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R

Actual

31 March

2009

R

Restated

29 Financial risk management

Forward foreign exchange contracts

No forward foreign exchange contracts were entered into during the current year under review.

Credit risk

CreditriskistheriskthatICASAmaysufferafinanciallossifacustomerorcounterpartytoafinancialinstrumentfailstomeet

its contractual obligations; this arises mainly from staff receivables. Financial assets which potentially subject the Authority to

concentrations of credit risk consist principally of cash and cash equivalents and trade and other receivables. The cash and

cashequivalentsareplacedwithhighcreditqualityfinancialinstitutions.Tradeandotherreceivablesarepresentednetofthe

allowancefordoubtfulreceivables.TheAuthorityhasnosignificantconcentrationofcreditrisk.Tradeandotherreceivables

are presented net of the allowance for doubtful receivables

Trade and other receivables mainly originate from transactions that the Authority enters into with the employees. The main

components of these receivables are bursary receivables, standing advance receivables, cell phone receivables and travel-

related receivables (other). The standing advance receivables are only payable when the employee leaves the employment of

the Authority whether through resignation, disability, death or search of greener pastures. The bursary receivables originate

whenaqualifyingemployeeoftheAuthorityisgrantedabursarytopursuestudiesinaparticularfieldofstudythatwould

be useful to the Authority on completion of their studies. Cell phone receivables and travel-related receivables relate to the

day-to-dayactivitiesandthesearerecoveredonamonthlybasisfromtheemployeesconcerned.Nosignificantlosseshave

been suffered from staff receivables. The staff receivables are owed by many employees and they are diverse and they do

not pose any major concentration of credit risk.

Trade and other receivables 1 456 833 1 789 813

Cash and cash equivalents 81 144 352 7853242182 601 185 80322234

Themaximumexposuretocreditriskfortradesreceivablebytypeofcustomerwasasfollows:

Staff receivables 1 055 172 884268

Other receivables 401 661 9055451 456 833 1 789 813

5

168

29 Financial risk management (continued)

Interest rate risk

Cashandcashequivalentshavematuritiesoflessthanthreemonthsandarenotsubjecttosignificantinterestraterisk.

Liquidity risk

Liquidity risk is the risk that theAuthoritywillnotbeable tomeet itsfinancialobligationsas they falldue.TheAuthority

financesitsoperationsthroughgrantsreceivedfromtheDepartmentofCommunicationsandinterestearnedonpositive

bankbalances.ThesearetheonlysourcesoffinancefortheAuthorityduetothefactthatthePublicFinanceManagement

Act prohibits the Authority from raising loans and other forms of short-term and long-term borrowings.

The entity maintains a reasonable balance between the period over which assets generate funds and the period over which

therespectiveassetsare funded.The followingtableprovidesdetailof theentity’s remainingcontractualmaturity for its

financialliabilities.Thetablehasbeendrawnupbasedontheundiscountedcashflowsoffinancialliabilitiesbasedonthe

earliestdateonwhichtheentitycanberequiredtopay.Thefiguresbelowincludebothestimatedinterestandprincipalcash

flowsoftheinstruments.Estimatedinterestoffloatinginterestratefinancialliabilitiesiscalculatedusingtheapplicableinterest

ratesattheendofthefinancialyear-end.

Maturity analysis

31 March 2010 0-1 year 2-3 years 3-4years

Trade payables 3 912 492 - -

Finance lease liability - - -3 912 492 - -

31 March 2009 0-1 year 2-3 years 3-4years

Trade payables 5549374 - -

Finance lease liability 173677 - -

5 723 051 - -

Fair values

The carrying amounts of cash and cash equivalents trade and other receivables and trade and other payables approximated

their fair values due to the short-term maturities of these assets and liabilities.

Useful lives of property, plant and equipment and intangible assets

The management determines the estimated useful lives and related depreciation charges for property, plant and equipment

as well as its intangible assets. The estimates are based on the assessed conditions of the assets, changes in technology

such as new technical innovations being introduced in the industry thus rendering our assets obsolete as well as expected

futurespendingoncapitalassets.Theseestimatescanchangesignificantlyasaresultofchangesintheconditionsofassets,

introductionofnewtechnologiesandavailabilityoffinanceresourcestofundexpectedfuturespendingoncapitalassets.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

169

Section

29 Financial risk management (continued)

Management will increase the depreciation charge where useful lives are less than previously estimated lives, or it will write-

off or write-down technically obsolete assets that have been abandoned or sold.

Risk management policies

Thereisnosignificantexposuretoforeigncurrencyrisk,interestraterisk,creditriskandliquidityrisk.

Interest rate sensitivity analysis

TheAuthoritydidnothaveanysignificantfinancialinstrumentsthatexposeittointerestratesatreportingdate.

Foreign currency risk management

TheAuthoritydidnothaveanyexposuretoforeigncurrencysinceitdidnothaveanyfinancialinstrumentsdenominatedin

foreign currency.

30 Financial risk management for Administered Assets

InformationaboutICASAAdministeredRevenue’sexposuretorisks,itsobjectives,policiesandprocessesformeasuringand

managing such risks, as well as quantitative disclosure, are discussed in this note.

Credit risk

CreditriskistheriskthatICASAAdministeredRevenuemaysufferafinanciallossifacustomerorcounterpartytoafinancial

instrumentfailstomeetitscontractualobligations,thisarisesmainlyfromAdministeredRevenue’stradereceivables.The

licenseesofAdministeredRevenuehavetoapplyintermsoftherelevantlegislationsinordertobeauthorisedtoconduct

any activities.

FinancialassetswhichpotentiallysubjecttheAdministeredRevenuetoconcentrationsofcreditriskconsistprincipallyof

cash and cash equivalents and trade receivables.

The cash and cash equivalents are placed withmajor banks approved by Treasury Regulations who have high credit

credibility. Trade and other receivables are presented net of the allowance for doubtful receivables.

ICASAAdministeredRevenuecollects themajorityof its revenue fromthemajormobile telecommunicationscompanies

and these have excellent reputation and they receive very good credit ratings. These companies have been dealing with the

AdministeredRevenuesincetheyweregrantedtheirtelecommunicationslicencesinthe1990s.

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Restated

30 Financial risk management for Administered Assets (continued)

Theotherthirdmobiletelecommunicationslicenseeisnotsignificantwhencomparedwiththemajoroperatorsnolosses

haveeverbeensufferedfromthisoperator.Anotherportionoftherevenueiscollectedfromthefixedlinetelecommunications

licensees.Themajoroneofthesefixedmobilelicenseeshasbeeninoperationformanyyearsandtherehasneverbeenany

financiallosssufferedasaresultofthislicenseefailingtomeetitslicenseobligations.Theotherfixedlinelicenseehasonly

beeninoperationforacoupleofyearsandnofinanciallosseshaveeverbeensuffered.

The spectrum licensees are diverse and they comprise of different licensees from Government Departments, major

telecommunicationscompanies,broadcasting licensees, securitycompanies,etc.There isnosignificantexposure from

major corporations and Government Departments. It must be noted though that collecting from minor licensees and some

corporations do pose a challenge due to the value of the amounts outstanding as well as the resources that are available to

ICASA to collect the amounts outstanding. The other challenge relates to the legal challenges that ICASA gets embroiled in

when it acts in terms of the relevant legislation. The disputes tend to be time-consuming and costly. It is hoped that the new

legislation under review will address the shortcomings of the current legislation.

Thebroadcastinglicenseesandpostallicenseesareinsignificantwhencomparedtothetelecommunicationslicenseesand

they are diverse and they do not pose any major concentration of credit risk

The Electronic Communications Act was implemented with effect from the 1st of April 2009; no major shift in the credit risk

hasbeenidentifiedsincetheimplementationofthesenewregulations.

Exposure to credit risk

Thecarryingamountoffinancialassetsrepresentsthemaximumcreditexposure.Themaximumexposuretocreditriskat

thereportingdatewas:

Trade and other receivables 527 674 330 579943988527 674 330 579943988

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

171

Section

31 March

2010

R

Actual

31 March

2009

R

Restated

30 Financial risk management for Administered Assets (continued)

Themaximumexposuretocreditriskfortradesreceivablebytypeofcustomerwasasfollows:

Broadcasting services - 27024717

Frequency spectrum services 34 706 663 24450119

Telecommunications services 492 967 667 510178396

Postal services - 18290756527 674 330 579943988

At 31 March 2010, carrying amounts of trade and other receivables were estimated to approximate their fair values.

TheratingoftradeandotherreceivablesattheendofMarchwasasfollows:

Low risk 478 222 701 529532618

Medium risk 18 058 582 12468144

Highrisk 31 393 047 37943226527 674 330 579943988

Impairment losses

Impairment lossesare recognised for all knownbaddebtsandareprovidedona specificbasis. Themovement in the

provisionforimpairmentoftradeandotherreceivableswasasfollows:

Impairment of receivables

Opening balance (24109351) (26458798)

Impairmentsrecognisedinprofitandloss` (20187060) (11006201)

Reversalsofimpairmentsrecognisedinprofitandloss 12903363 13355648

Closing balance (31393048) (24109351)

Theagingoftheprovisionforimpairmentattheendofthefinancialyearwasasfollows:

Amountsin31-60days 19 798 172 -

Amount in greater than 120 days 11 594 876 24109351

31 393 048 24109351

As at 31 March 2010, trade receivables of R20 187 060(2009:R11006201)wereimpairedandprovidedfor.Theamountof

the provision was R 31 393 048at31March2010(2009:R24109351).Theindividuallyimpairedreceivablesmainlyrelate

to frequency spectrum debtors, broadcasting services debtors and postal service debtors.

5

172

31 March

2010

R

Actual

31 March

2009

R

Restated

30 Financial risk management for Administered Assets (continued)

As at 31 March 2010 accounts receivable totalling R17 990 416(2009:R14000000)werepastduebutnotimpaired.These

relate to a number of independent debtors for whom there is no recent history of default.

Theagingofthesereceivablesisasfollows:

Trade receivable past due but not impaired

Amountin61-90days 17 990 416 -

Amounts in 91 days + - 14000000

17 990 416 14000000

Based on past experience, accounts receivable balances that are past due are not impaired unless they are known to be

impaired.

The above-mentioned receivables relate mainly to the telecommunications licensee for multi-media and career of careers

licenses, short-payments by broadcasting and telecommunications licensees, interest on late payment of licence fees,

Universal Service and Access Fund contributions and VANS licence fees. The major debtor entered into a payment agreement

with the Authority and they have been paying in accordance with the agreed-upon payment plans. The other accounts

receivable balances were not provided for due to the fact that there was an undertaking from the parties concerned that the

outstanding amounts will be settled and for some debtors, there was high probability that the amounts outstanding will be

recovered based on the payment patterns of the customers concerned.

Asat31March2010RNil(2009:RNil)oftradeandotherreceivablesweredenominatedinforeigncurrencies.

Thecreationandreleaseofprovisionforimpairedreceivableshavebeenincludedsurplusordeficitfortheperiod.Amounts

charged to the allowance account are generally written off when there is no expectation of recovering additional cash.

Forward foreign exchange contracts

No forward foreign exchange contracts were entered into during the current year under review.

Interest rate risk

Cashandcashequivalentshavematuritiesoflessthanthreemonthsandarenotsubjecttosignificantinterestraterisk.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2010

173

Section

31 March

2010

R

Actual

31 March

2009

R

Restated

30 Financial risk management for Administered Assets (continued)

Liquidity risk

Liquidity risk is the risk that theAdministeredRevenuewill notbeable tomeet its financialobligationsas they falldue.

TheAdministeredRevenuecollectslicencefeesfromtheTelecommunicationsServicesLicenseesBroadcastingServices

Licensees and the Postal Services Licensees. All the fees collected are paid over to the National Treasury through the

Department of Communications within 30 days of their collection.

Exposure to credit risk

All theoperatingcostsof theAdministeredRevenuesectionare financedby ICASA throughgrants it receives from the

Department ofCommunications and interest earned on positive bank balances. These are the only sources of finance

available to ICASA due to the fact that the Public Finance Management Act prohibits ICASA from raising loans and other

formsofshort-termand long-termfinance.Furthermore ICASA isprohibited fromutilising the fees itcollects to fund its

operations.

Fair values

The carrying amounts of cash and cash equivalents trade and other receivables and trade and other payables fair values due

to the short-term maturities of these assets and liabilities.

Risk management policies

Thereisnosignificantexposuretoforeigncurrencyrisk,interestraterisk,creditriskandliquidityrisk.TheAuthoritydoesnot

enterintoforeignexchangecontracts;itdidnothaveanyreceivablesthatexposesittointerestratefluctuations.

31 Commitments

Opening balance 11 196 950 -

Expenditure (9 500 743) -

Contractedforbutnotprovidedintheannualfinancialstatements

12 997 598 8167142

Authorised but not contracted for 593 712 3 029 80815 287 517 11196950

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174

32 Events after the reporting date

Therewerenosignificanteventsthattookplacebetweenthereportingdateandthedateinwhichthefinancialstatements

were authorised for issue.

175

Section

Supplementary Schedule to the annual financial statements

World Cup Expenditure

ICASA did not buy any World Cup tickets or promotional materials.

5

176

NOTES

Contact us:

Phone: 27 (11) 566 3000/3001

E-mail: info@icasa.org.za

Physical Address:

Blocks A, B, C and D, Pinmill Farm, 164 Katherine Street, Sandton

RP210/2010

ISBN: 978-0-621-39628-7