briefing: quarter 2 and 3 - quarterly monitoring reports portfolio committee of the department of...

Briefing: Quarter 2 and 3 - Quarterly Monitoring Reports

Portfolio Committee of the Department of Agriculture, Forestry and Fisheries (DAFF)

3 March 2015

Reputation promise/mission

The Auditor-General of South Africa has a constitutional mandate and,

as the Supreme Audit Institution (SAI) of South Africa, exists to strengthen our

country’s democracy by enabling oversight, accountability and governance in the

public sector through auditing, thereby building public confidence.

Agenda

1. Audit of Predetermined Objectives

2. Review of Quarter 2 and Quarter 3 quarterly monitoring reports (QMRs)

AUDIT OF PREDETERMINED

OBJECTIVES

Audit of Predetermined Objectives

• Identify desired impacts

Assess and adjust Specify

performance

indicators

resources

Monitor and take

Corrective action

End-year reporting

Strategic Planning

Implementation and in-year reporting

Operational planning and

budgeting

Policy development

INSTITUTIONNational department

Provincial departmentMunicipalityPublic entity

Municipal entity

OVERSIGHT:Parliament, provincial legislature or municipal council

Set targets and allocate

resources


Legislative Requirements

AGSA

Constitution Chapter 9

Section 188 – must audit and

report on accounts, financial

statements and financial

management of government institutions

Public Audit Act (No. 25 of 2004)

Section 20 – AGSA must

prepare audit report containing

opinion/ conclusion on:

- Financial statements and

financial position- Compliance and

financial management

- Predetermined objectives

(performance)

Departments

Public Financ

e Management Act

(No. 1 of

1999)

Section 38(1)

(a)(i) – has and

maintains

effective,

efficient and

transparent

systems of

financial and

risk management

and internal control.

Section 40(3)(a) -

annual performance report

Treasury

Regulations

Chapter 5 -

Strategic

Planning

Guidelines,

Instruction

Notes, Practic

e Notes, issued

by Nation

al Treasu

ry

Public Servic

e Regulations (PSR)

Part III B:

(Only applicable to departments)Regulations

1(a)-(f),(g)

FMPPI

Framework for

managing

programme performance informa

tion (issued by the Nation

al Treasu

ry in May

2007)Chapter

5&

Framework for

Strategic

Plans and

Annual Performance Plans par. 4&6


•Understand and test the design and implementation of the performance management systems, processes, and relevant controls

1. Understand

•Test the measurability, relevance, presentation & consistency of planned and reported performance information2. Test Usefulness

•Conclude on the usefulness of the report on predetermined development priorities or objectives

3. Conclude Usefulness

•Test the reported performance information to relevant source documentation to verify the validity, accuracy & completeness of reported performance information

4. Test Reliability

•Conclude on the reliability of the reported performance for selected development priorities or objectives5. Conclude Reliability

AGSA Audit process


Audit Outcomes of 2013/14

Existence Timeliness

Usefulness

Presentation

Measurability

Relevanc

e

Consisten

cy

Reliability

Validity Accuracy

Completeness

No matters reported Reported in audit report

Additional matter paragraphs included in the audit report: > Material adjustments were made to the annual performance report submitted for audit.

REVIEW OF Q2 and Q3 QMR’s

Quarter 2 and quarter 3 QMR’s review

Q2: 10% of reason for variances not reliable

Programme 2:Agricultural Production, Health and Food Safety

Target as per 2014-15 APP

Q2 target Actual for Q2 Deficiency noted

Animal disease management plan developed.

GAP Analyses and stakeholder consultations on the management of animal diseases.

The GAP analysis report that was generated by the stakeholders in Q1 was received. However, consultations with the stakeholders did not take place in Q2.

No supporting documentation for reason for variance listed.


Programme 2:Agricultural Production, Health and Food Safety

Q3: 12.5% of reason for variances not reliableQ3: 12.5% of reported targets not valid and

accurate


Q3 target Deficiency noted

2 animal improvement schemes monitored.

Animal improvement scheme performance data collected.

Data collection on parameters is continuing well.

The report drawn for the collection of data was dated 23 January 2015, therefore the target was only achieved in Q4. No reason for variance listed in Q3.

Primary animal health care clinics delivered to provinces.

Commission construction of mobile clinics.

Construction of prefabricated mobile clinics was commissioned. However, the construction of 28 to 32 ton trucks to be converted into mobile clinics was delayed.

No supporting documentation for reason for variance listed.

Programme 3:Food Security and Agrarian Reform

Q2: 40% of reason for variances not provided Q2: 20% of reported targets not reliableTarget as per 2014-15 APP


Develop norms and standards for comprehensive producer development support.

Norms and standards for comprehensive support consulted internally.

Norms and standards still being developed in partnership with the NAMC. Consultation expected to take place in the Q4.

The comment on deviation noted on the report does not provide a reason why the target was not met it only states what has been done in the quarter and what still needs to be done for the target to be achieved.

Approve and implement the National Extension Advisory Policy.

National Extension Advisory Policy approved by EXCO.

National Extension and Advisory Services Policy as well as its Implementation Plan were tabled at MinTech on 9 July 2014.

The resolution of MinTech was for the Policy document and Implementation Plan to be forwarded to all HODs and Public Entity CEOs for comments and inputs. HODs and CEOs were given until 11 August 2014, to submit their comments and inputs. These were incorporated into the Policy document on 24 August 2014.

The comment on deviation noted on the report does not provide a reason why the target was not met it only states the fact that EXCO did not yet approve the policy an not why not.



Q2: 40% of reason for variances not provided Q2: 20% of reported targets not reliable


Actual for Q2 Deficiency noted

The Policy document and its Implementation Plan were recommended by MinTech at a meeting held on 11 September 2014, to be tabled at next MINMEC meeting.

The Policy and Implementation Plan were tabled at the MINMEC meeting on the 26 September 2014.

MINMEC approved the policy and further requested Provinces to consider the implications of the approval in line with the Implementation Plan.






16 000 smallholder producers supported.


The audit was performed for verification and completeness and findings were identified and they are explained on deficiency column .

1. Detailed listing did not agree to the figure reported in the Q2 report.

2. Invalid ID numbers noted.3. ID numbers noted on listing

that did not agree to the supporting documentation.

4. Not all supporting documents were available.


3 000 smallholder producers

4 575 smallholder producers have been supported in Q2.

No reason for variance noted for the target that was exceeded.


3000 smallholder producers

Result are based on the audit that was performed .

1. Invalid ID numbers noted.2. Attendance registers that were

not signed by participants.3. Attendance registers that were

not prepared on an official DAFF stationary (logo, province not included)



Programme 5:Forestry and Natural Resource Management

Q2: 50% of reason for variances not provided Q2: 50% of reported targets not reliableTarget as per 2014-15

APPQ2 target Actual for Q2 Deficiency noted

Irrigation Strategy developed and approved by EXCO.

Workshops with provinces, EXCO and other stakeholders.

Workshops were not conducted during this quarter.

The comment on deviation noted on the report does not provide a reason why the target was not met it only states what still needs to be done to achieve the target.

500 ha of woodlands and Indigenous forests rehabilitated.


A total 175,83 ha of estate indigenous forest was rehabilitated during Q2.44,1 ha of state indigenous forests was rehabilitated in September 2014, while 50,39 ha and 81,34 ha was rehabilitated in July and August, respectively

No reason was provided for why the target was exceeded..







Only consolidated reports are supplied by the regions not monthly report

Only consolidated reports are currently available that indicates the number of hectares rehabilitated however, the individual daily/monthly reports that filters into these consolidated reports where not received and we could therefore not verify the reliability of the reported target.

Implement climate change research programme on crop suitability.

Monitor the implementation of crop suitability.

Implementation of crop suitability was monitored as follows: Cultivar was identified for the project (Soya-beans).

Sites to conduct trials and project beneficiaries were identified.

Three project sites were identified and verified in North West, Free State and Mpumalanga.

Implementation plan developed and finalized.

The reported provinces did not agree to the provinces as per the supporting documentation provided. North West instead of Limpopo was reported on the Q2 report.









A total of 125.65 ha of state indigenous forests was rehabilitated.

No reason was provided for why the target was exceeded..



There are no monthly report that are supplied by the regions.

Only consolidated reports are currently available that indicates the number of hectares rehabilitated however, the individual daily/monthly reports that filters into these consolidated reports where not received and we could therefore not verify the reliability of the reported target.

Thank You.

briefing: quarter 2 and 3 - quarterly monitoring reports portfolio committee of the department of...

Documents