i c a s a 2012-2013 annual report parliamentary portfolio committee on communications
DESCRIPTION
I C A S A 2012-2013 Annual Report Parliamentary Portfolio Committee on Communications. Presented by Dr. Stephen Mncube Chairperson, Councillors, CEO and CFO Date :Tuesday, 15 October 2013 Time :09:30 – 18:00 Venue : Committee Room E249, New Wing, National Assembly Building. - PowerPoint PPT PresentationTRANSCRIPT
I C A S AI C A S A2012-2013 Annual Report2012-2013 Annual Report
Parliamentary Portfolio Committee on Parliamentary Portfolio Committee on CommunicationsCommunications
Presented by Dr. Stephen Mncube Chairperson, Councillors,CEO and CFO
Date: Tuesday, 15 October 2013Time: 09:30 – 18:00Venue: Committee Room E249, New Wing, National
Assembly Building
Presentation OutlinePresentation Outline
Part 1 Chairperson’s overview
Part 2 Chief Financial Officer’s report
Part 3 Chief Executive Officer’s report
2
PARTPART 1 1
Dr. Stephen Mncube Chairperson
3
Part 1 - ContentPart 1 - Content
• ICASA Vision, Mission and Values• ICASA Organogram• Strategic Output Oriented Goals (SOOGs)• ICASA Programmes• Audit findings in AG report
4
Vision and MissionVision and Mission
VISIONTo advance the building of a digital society
MISSIONTo ensure that all South Africans have access to a wide range of high quality communication services at affordable prices
5
Organisational structureOrganisational structure
Proposed interim structureProposed interim structure
Eight Strategic Goals (1)Eight Strategic Goals (1)
SOOG1 Transformation of the ICT Sector
SOOG2 Ensure the provision of broadband services
SOOG3 Optimise the use of the radio frequency and numbering resource to support the widest variety of services
SOOG4 Promote the protection of consumers and accessibility for persons with disabilities
8
Eight Strategic Goals (2)Eight Strategic Goals (2)
SOOG5 Promote the development of public, community and commercial broadcasting services in the context of digital migration
SOOG6 Ensure compliance with legislation and regulation
SOOG7 Strengthen and modernise ICASA
SOOG8 Promote competition
9
ICASA Programmes ICASA Programmes
10
Council Response to Audit FindingsCouncil Response to Audit Findings
A two-dimensional approach was adopted:1.Instituted a “dash-board” that enlisted all audit matters for resolution. The General Licence Fee Regulations were revised to resolve the accuracy of licence fees calculated.2.Introduced an Interim Organisational Structure in which the regulatory programmes report directly to Council as opposed to the Chief Executive Officer.
11
Other Council interventionsOther Council interventions
• The 8 Strategic Goals of 2012/13 have been re-clustered into 5 Goals for 2013/14 reducing the number of Strategic Targets from 43 to 26; and
• A Consultant to facilitate the organisational realignment process has commenced in the new financial year.
12
PART 2PART 2
Clarinda Simpson Chief Financial Officer
13
• Report of the Auditor-General• Statement of Financial Performance• Statement of Financial Position• Compliance with Laws & Regulations
Part 3 - ContentPart 3 - Content
14
Report of the Auditor-General: Opinion(1)Report of the Auditor-General: Opinion(1)
15
Report of the Auditor-General: Opinion (2)Report of the Auditor-General: Opinion (2)
16
EMPHASIS OF MATTERS (1)
Attention is drawn to certain notes in the annual financial statements which were deemed material by the Auditor General.
Restatement of corresponding figures (refer note 30.1 to the annual financial statements)
•The restatement of corresponding figures for NRF Receivables and Payables in order to reflect supported balances for prior years
Report of the Auditor-General: Opinion (3)Report of the Auditor-General: Opinion (3)
17
EMPHASIS OF MATTERS (2)
Significant Uncertainties (refer note 27 to the annual financial statements)
•Significant number of lawsuits in progress against the Authority, of which the outcome at this stage is unknown and as a result no provision was raised in the annual financial statements
Impairment of NRF Receivables (refer note 9 to the annual financial statements)
•The Authority was unable to recover long outstanding debt from certain licensees, which was ultimately approved for write off
Statement of Financial Performance Main AccountStatement of Financial Performance Main Account
18
2013 2012
RevenueRevenue from non - exchange transactions 342,523,936 315,434,608Revenue from exchange transactions 6,085,858 4,914,107Total revenue 348,609,794 320,348,715ExpenditurePersonnel (194,269,231) (186,210,004)Administrative expenditure (31,757,102) (32,541,002)Depreciation and amortisation (12,611,899) (9,023,123)Impairment loss (36,773) -Finance costs (196,722) (238,783)Repairs and maintenance (3,344,024) (3,811,374)Audit fees (2,688,436) (3,209,444)General expenses (89,381,875) (78,769,865)Total expenditure (334,286,062) (313,803,595)Operating surplus 14,323,732 6,545,120Fair value adjustment to assets 273,087 61,149
Surplus for the year 14,596,819 6,606,269
Statement of Financial Position Consolidated (1)Statement of Financial Position Consolidated (1)
19
2013 2012
AssetsCurrent AssetsPrepayments 4,966,733 5,998,893Inventories 530,421 507,809Receivables from exchange transactions 2,606,615 2,549,345National Revenue Fund receivables 789,485,093 642,163,011Cash and cash equivalents 155,124,500 45,551,280
952,713,362 696,770,338
Non-Current AssetsProperty, plant and equipment 90,977,635 87,271,822Intangible assets 8,285,997 12,307,207
99,263,632 99,579,029
Total Assets 1,051,976,994 796,349,367
Statement of Financial Position Consolidated (1)Statement of Financial Position Consolidated (1)
2013 2012
LiabilitiesCurrent LiabilitiesFinance lease obligation 533,359 615,110Operating lease liability 75,523 173,059Payables from exchange transactions 19,002,189 15,317,711Trade and other payables from non - exchange transactions 20,937 20,937National Revenue Fund payables 824,047,963 650,357,458Unspent conditional grants and receipts 63,412,424 -Provisions 10,185,600 9,154,027
917,277,995 675,638,302
Non-Current LiabilitiesFinance lease obligation 455,452 988,812Operating lease liability 60,955 136,477
516,407 1,125,289
Total Liabilities 917,794,402 676,763,591
Net Assets 134,182,592 119,585,776
Net AssetsAccumulated surplus 134,182,592 119,585,776
Consolidated Statement of Cash FlowsConsolidated Statement of Cash Flows
21
2013 2012
Cash flows from operating activities
ReceiptsCash received from Department of Communication 405,797,000 313,378,000Other receipts 213,128 2,495,018Cash received by Administered Revenue 969,774,535 986,842,320Finance income 6,012,090 4,475,697
1,381,796,753 1,307,191,035
PaymentsEmployee costs (194,269,231) (186,210,003)Suppliers (117,233,501) (118,298,658)Finance costs (196,722) (238,738)Cash paid by Administered Revenue (943,418,953) (985,581,181)
(1,255,118,407) (1,290,328,580)
Net cash flows from operating activities 126,678,346 16,862,455
Cash flows from investing activities
Purchase of property, plant and equipment (16,917,452) (9,511,336)Purchase of intangible assets (187,674) (2,909,778)Net cash flows from investing activities (17,105,126) (12,421,114)
Net increase/(decrease) in cash and cash equivalents 109,573,220 4,441,341Cash and cash equivalents at the beginning of the year 45,551,280 41,109,939Cash and cash equivalents at the end of the year 155,124,500 45,551,280
Statement of Comparison of Budget and Actual Statement of Comparison of Budget and Actual AmountsAmounts
22
Compliance with Laws & Regulations Compliance with Laws & Regulations
FindingFinding Corrective ActionCorrective Action• Material misstatements were
identified in the financial statements submitted on 31 May 2013, which were subsequently corrected
• The accounting officer did not take effective steps to prevent irregular; fruitless and wasteful expenditure
• The Internal Audit Function did not evaluate and develop recommendations on the effectiveness and efficiency of controls
• Timeous decision making on matters affecting the annual financial statements, which will result in more effective reviews
• Employees found guilty of transgressing the supply chain management procedures resulting in irregular or fruitless and wasteful expenditure are being dealt with in terms of the HR policies
• The Internal Audit Function of the Authority is currently under review
23
PART 3PART 3
Themba Dlamini Chief Executive Officer
24
Part 3 - ContentPart 3 - Content
1. Linking Performance with Budget2. Report of the Auditor-General3. Predetermined Objectives4. Legal Matters5. Programmes Performance
• Licensing and Compliance• Engineering and Technology • Markets and Competition • Consumer Affairs
25
Linking Performance with Budget (1)Linking Performance with Budget (1)
• Of the R411 million budget allocation, the Authority managed to spend 85% of the allocation
• A total of R63,4 million was not spent relating to ring- fenced projects
• Actual OPEX of R317 million against a budget of R319 million– A saving of R2million (0.7%) was realised due cutting
expenditure on consumables such as printing; stationery; publications and advertising etc.
26
Linking Performance with Budget (2)Linking Performance with Budget (2)
• On Projects and CAPEX actual expenditure was 71% less than budget– this under expenditure is attributed to unspent
funds earmarked for the relocation of the Head Office and procurement challenges relating to the broadcasting and postal services equipment
• Other contributing factors for the slow spending relates to the procurement of the spectrum management software
27
Report of the Auditor-General (1)Report of the Auditor-General (1)
Expenditure management •the identification of fruitless and wasteful expenditure R3 671 279 has increased compared to the previous year’s restated amount of R189 292 •This can be attributed to fruitless and wasteful expenditure of R2 789 906 relating to prior years which was only identified in the current year.•The process of taking corrective measures for these amounts has been embarked upon.•Similarly, irregular expenditure of R4 153 874 has increased compared to the previous year’s amount of R538 433. •Of this irregular expenditure of R1 304 108 relates to prior periods identified in the current year. •The details of fruitless, wasteful and irregular expenditure are contained in the notes to the annual financial statements.
28
Report of the Auditor-General (2)Report of the Auditor-General (2)
Internal audit •The internal audit did not evaluate and develop recommendations on the effectiveness and efficiency of controls throughout the year.•The institution did not ensure that there was an adequately functioning internal audit unit that identified internal control deficiencies and recommended corrective action effectively throughout the year
29
Report of the Auditor-General (3)Report of the Auditor-General (3)Investigations
•The investigation was initiated based on allegations of possible fraudulent activities by the supply chain manager. •The supply chain manager was suspended and subsequently charged with alleged misconduct and disciplinary proceedings were instituted. •The employee tendered his resignation with immediate effect during the disciplinary hearing and the disciplinary process was therefore terminated. •ICASA had an obligation, due to the seriousness of the charges and in terms of ICASA’s Fraud and Prevention Policy, to formally report the internal investigation to the Hawks in terms of section 34(3)(a) of the Prevention and Combating of Corrupt Activities Act, 2004 (Act No 12 of 2004). •The Hawks are currently investigating a number of cases within the Supply Chain Management Unit.
30
Legal MattersLegal Matters
31
Litigations•1 settlement agreement was reached on Capital Debt; ICASA has not concluded on the interest due on the debt;•4 allocations for a trial date is still to be issued;•1 awaiting withdrawal; and•1 matter for re-instatement for hearing.CCC Matters•11 cases; 1 pending, 2 postponed, 3 settled, 3 warnings issued and 2 for ICASA to review its process.
Predetermined objectives (1)Predetermined objectives (1)
AG’s report:There were no material findings on the annual performance report concerning the usefulness and reliability of the information.
Of the total number of 42 targets planned for the year, 28 of the targets were not achieved during the year under review. This represents 67% of total planned targets that were not achieved during the year under review.
32
Predetermined Objectives(2)Predetermined Objectives(2)
33
Performance – Achievement (1)Performance – Achievement (1)
34
Output No. Key Outcome Key Output
PerformanceMeasure/Indicator
Target2012/2013
Performance against Targets 2012/13 and Reasons for Variance
SOOG3 STRATEGIC OUTCOME ORIENTATED GOAL
Optimise the use of the radio frequency (RF) and numbering resource to support the widest variety of services
3.1. STRATEGIC OBJECTIVE
Introduce market-based, opportunistic and other innovative approaches in access to spectrum
3.2. STRATEGIC OBJECTIVE
Introduce regulatory reforms in the numbering frameworks
SO 3.2.1 Regulatory reforms to the Numbering Plan framework
Revised Numbering Plan to promote effective and efficient use of the numbering resource
Revised Numbering Plan regulations
Publication of revised Numbering Plan regulations
Revised numbering plan regulations were published on 02 October 2012 (GG 35 737)
Performance – Achievement (2)Performance – Achievement (2)
35
Output No. Key Outcome Key Output
PerformanceMeasure/Indicator
Target2012/2013
Performance against Targets 2012/13 and Reasons for Variance
SOOG4 STRATEGIC OUTCOME ORIENTATED GOAL
Promote the protection of consumers and accessibility for persons with disabilities
4.1. STRATEGIC OBJECTIVE Promote consumer rights
SO 4.1.1 Consumer Protection Framework
Revised End-User Subscriber Service Charter (QoS) by 31 March 2014
End-User Subscriber Service Charter (QoS) by 31 March 2014
Discussion document on revised End-User and Subscriber Service Charter (QoS)
Revision of the End-User and Subscriber Service Charter was done and the regulations were also vetted.
SO 4.1.2 Revised Code of Conduct on Persons with Disabilities by 31 March 2014
Code of Conduct on Persons with Disabilities by 31 March 2014
Discussion document on revised Code of Conduct on People with Disabilities
The target was Achieved as the revision of the regulations were completed as planned
4.2. STRATEGIC OBJECTIVE Ensure universal service and access
SO 4.2.4 Bridging the Digital Divide by promoting an efficient and effective Postal sector
Memorandum of Understanding (MoU) with USAASA on promotion of Universal Service and Access
MoU with USAASA on programmes related to Universal Service and Access
MoU between USAASA and 3 x Reports on engagement and collaboration with USAASA
The target was Achieved as the MoU was drafted collectively by ICASA and USAASA to enable the two entities to collaborate on the promotion of universal service and access.
Performance – Achievement (3)Performance – Achievement (3)
36
Output No. Key Outcome Key Output
PerformanceMeasure/Indicator
Target2012/2013
Performance against Targets 2012/13 and Reasons for Variance
SOOG5 STRATEGIC OUTCOME ORIENTATED GOAL
Promote the development of public, community and commercial broadcasting services in the context of digital migration
5.1. STRATEGIC OBJECTIVE
Migration to and availability of choice & diversity of broadcasting services in the digital environment
SO 5.1.3 Availability of choice and diversity in broadcasting services
New regulations governing Local Television Content, Independent Television Production and South African Music by 31 March 2015
Draft Discussion document on review of Local Content Regulations by 31 March 2013
The revised target of an inception report on the impact of local content obligations was achieved, with the final recommendations and regulations for local content in the digital era to be developed in the 2013/14 financial year
Performance – Achievement (4)Performance – Achievement (4)
37
Output No. Key Outcome Key Output
PerformanceMeasure/Indicator
Target2012/2013
Performance against Targets 2012/13 and Reasons for Variance
SOOG6 STRATEGIC OUTCOME ORIENTATED GOAL Ensure compliance with legislation and regulation
6.1. STRATEGIC OBJECTIVE
Introduce a comprehensive Compliance and Enforcement framework
SO 6.1.1 Compliance with legislation and regulations
Effective management of the numbering resource
Publication of Annual Number Audit findings
Findings document on Annual Audit of numbering resource utilisation
Target Achieved
SO 6.1.2
Compliance with legislation and regulations
Management of the Interconnection (I/C) and Facilities Leasing (F/L) Regime
Guidelines on Disputes regarding I/C and F/L and Infrastructure Sharing
Report on compliance with I/C and F/L regulations
Annual report on compliance with I/C and F/L regulations compiled on a quarterly basis. Online database for lodging of I/C and F/L agreements is operational.
SO 6.1.3 Compliance with legislation and regulations
Compliance with licence terms and conditions and regulations
Published Annual Reports on compliance with legislation and regulations
Compile and approve Reports on;Postal: 2ECN/S: 30 Broadcasting compliance: 45
The information received from monitoring visits undertaken collated and analysed in progress report
SO 6.1.4 Universal Service Access Obligations (USAO) framework document
USAO framework Published Implementation Plan developed dependent on the outcome of the Findings document
The project was completed in Q2 by the publication of USAO Findings Document.
SO 6.1.5 New Universal Service Access (USA) Regulations
Published Regulations with gazetted definition and list of under serviced areas
Published Implementation Plan developed dependent on the outcome of the Findings document
The project was completed in Q2 by publishing the final regulations on Under-Serviced Areas Definition.
Output No. Key Outcome Key Output
PerformanceMeasure/Indicator
Target2012/2013
Performance against Targets 2012/13 and Reasons for Variance
SOOG6 STRATEGIC OUTCOME ORIENTATED GOAL Ensure compliance with legislation and regulation
6.1. STRATEGIC OBJECTIVE
Introduce a comprehensive Compliance and Enforcement framework
SO 6.1.7 Compliance with legislation and regulations
Effective and efficient resolution of disputes/complaints
Quarterly statistics of complaints redressed
Successful management and redress of consumer complaints received
The total number of 4317 were received and redressed. The total number of 2270 were resolved, which gives a success rate of 64% and 1547 complaints are pending, which is 36% of complaints outstanding.
SOOG7 STRATEGIC OUTCOME ORIENTATED GOAL Strengthen and modernise ICASA
7.1. STRATEGIC OBJECTIVE Improved operational processes and performance
SO 7.1.6 To have strategically positioned ICASA offices at cost effective rates
Economic rental locations for ICASA offices identified and occupied
Relocation of Office Space and staff by specified date, and completion of project plan on time
Extension of current Head Office lease until 31 October 2013
The target has been met by reducing rental rates and renewed by five (5) years.The division did not proceed with the deliverable. Subsequent to the five year renewal of Head Office lease the landlord has submitted the new addendum that is currently being vetted by Legal. Though the Authority has not relocated (key output), the new rental rates are in line with the standards approved by RODE Report, a standard recognised by DPW. Therefore, we have Achieved in terms of reducing the rental rates.
Performance – Achievement (5)Performance – Achievement (5)
38
Output No. Key Outcome Key Output
PerformanceMeasure/Indicator
Target2012/2013
Performance against Targets 2012/13 and Reasons for Variance
SOOG8 STRATEGIC OUTCOME ORIENTATED GOAL Promote competition
8.1. STRATEGIC OBJECTIVE Remove barriers to competition
SO 8.1.3 Development of pro-competitive remedies and implementation thereof
Carrier Preselect (CPS) regulations to increase consumer choice
Gazetted Code of Practice
Publication of Code of Practice by 30 June
Target Achieved
Performance – Achievement (6)Performance – Achievement (6)
39
Performance – Not Achieved (1)Performance – Not Achieved (1)
40
Output No.Key Outcome Key OutputTarget2012/2013
Performance against Targets 2012/13 and Reasons for Variance
SOOG1 STRATEGIC OUTCOME ORIENTATED GOAL Transformation of the ICT sector
1.1. STRATEGIC OBJECTIVE Ensure effective HDI/BEE participation in the sector
SO 1.1.1 Develop Regulations on ownership and control
Recommendations on ownership trends and structures for licensees who have been allocated numbers and/or radio frequency spectrum
Report on individual licensees’ equity ownership for licensees who have been allocated numbers and/or radio frequency by 31 March 2013
Collation of HDI Equity data through Compliance Manual will commence in 2013/14 financial year.
Performance – Not AchievedPerformance – Not Achieved
41
Output No. Key Outcome Key OutputTarget
2012/2013Performance against Targets 2012/13
and Reasons for Variance
SOOG2 STRATEGIC OUTCOME ORIENTATED GOAL Ensure the provision of broadband services
2.1. STRATEGIC OBJECTIVE
Allocation of accumulated 1000MHz for mobile communications
SO 2.1.1 Greater access to mobile telecommunication spectrum
Strategy (blueprint) for Radio Frequency migration plan
Radio Frequency migration plan published by 31 March 2013
The National Radio Frequency Plan 2013 is to be published as soon approval in terms of section 34(2) of the ECA is complied with.
SO 2.1.2 Licensing of available International Mobile Telephony (IMT) spectrum
Seven radio frequency spectrum licenses issued in the 2.6GHz and 800MHz bands
Deliverable deferred to 2013/14 during Mid-Term budget review to allow finalisation of the Ministerial Policy Directive. Budget reprioritised.
Performance – Not AchievedPerformance – Not Achieved
42
Output No. Key Outcome Key OutputTarget
2012/2013Performance against Targets 2012/13
and Reasons for VarianceSOOG2 STRATEGIC OUTCOME ORIENTATED GOAL Ensure the provision of broadband services2.2. STRATEGIC OBJECTIVE Increase connectivity of South Africans on broadband
SO 2.2.1
Regulatory response to Broadband Plan to support the national broadband policy
Online map to indicate where broadband services are available
Broadband map to be online by 30 September 2012
ICASA now has a GIS map of broadband coverage maps for publication online. Final approval and launch deferred to April 2013.
SO 2.2.2
Rapid Deployment Guidelines (RDGs) recommendations to the Minister
Submission of RDG Recommendation Report to the DoC by 31 June 2012
RDGs document completed. Council approval deferred to April 2013.
SO 2.2.3
Open-access model of wholesale network infrastructure = Local Loop Unbundling (LLU)
Implementation of LLU through: Reduction in IPC prices by 1 April 2012; Introduction of bitstream wholesale access product by 1 November 2012; Introduction of ALD recovery scheme by March 2013
Draft regulations to implement local loop unbundling, which were submitted to Council for consideration on the 26th of March 2013. This was deferred to April 2013.
Performance – Not AchievedPerformance – Not Achieved
43
Output No. Key Outcome Key OutputTarget
2012/2013Performance against Targets 2012/13
and Reasons for Variance
SOOG3 STRATEGIC OUTCOME ORIENTATED GOALOptimise the use of the radio frequency (RF) and numbering resource to support the widest variety of services
3.1. STRATEGIC OBJECTIVE Introduce market-based, opportunistic and other innovative approaches in access to spectrum
SO 3.1.1 Greater access to Radio Frequency (RF) spectrum
Wholesale Open Access model in licensing of some of mobile broadband spectrum
Two spectrum licences issued in 2.6GHz and 800MHz bands using the Wholesale Open Access model
Deliverables deferred to 2013/14 during Mid-Term budget review to allow finalization of the Ministerial Policy Directive. Budget reprioritised.
SO 3.1.3 Optimise spectrum usage
Develop framework for market-based licensing of some of the mobile spectrum
Draft framework completed but not tabled at Council. During Business Plan review the deliverable is incorporated in SOOG2 of the revised ICASA 5 year strategy.
3.3. STRATEGIC OBJECTIVE Support the rapid uptake of new ICT technologiesSO 3.3.1 Type Approval
framework to support innovation
Revision of Type Approval framework
Revision of Type Approval framework
Final Framework to be tabled at Council during first week of April 2013 for publication approval. Implementation upon publication.
Performance – Not AchievedPerformance – Not Achieved
44
Output No. Key Outcome Key OutputTarget
2012/2013Performance against Targets 2012/13
and Reasons for Variance
SOOG4 STRATEGIC OUTCOME ORIENTATED GOAL Promote the protection of consumers and accessibility for persons with disabilities
4.2. STRATEGIC OBJECTIVE Ensure universal service and access
SO 4.2.1 Bridging the Digital Divide by promoting an efficient and effective Postal sector
Regulations on Electronic Postal Services
Final Report to the DoC on recommendations to support the introduction of Electronic Postal Services
Final report complete. Council approval deferred to April 2013
SO 4.2.2 New licensing framework for postal services
Report on SAPO achievements re USO obligations
Final report complete. Council approval deferred to April 2013
Performance – Not AchievedPerformance – Not Achieved
45
Output No. Key Outcome Key OutputTarget
2012/2013Performance against Targets 2012/13
and Reasons for Variance
SOOG5 STRATEGIC OUTCOME ORIENTATED GOAL Promote the development of public, community and commercial broadcasting services in the context of digital migration
5.1. STRATEGIC OBJECTIVE
Migration to and availability of choice & diversity of broadcasting services in the digital environment
SO 5.1.3 Availability of choice and diversity in broadcasting services
Broadcasting regulatory framework to support the digital environment
Findings document outlining framework for the introduction of a new regulatory framework for broadcasting services by 30 June 2012
The Findings document was concluded, with Council deferring publication to the 2013/14 financial year.
Performance – Not AchievedPerformance – Not Achieved
46
Output No. Key Outcome Key OutputTarget
2012/2013Performance against Targets 2012/13
and Reasons for Variance
SOOG6 STRATEGIC OUTCOME ORIENTATED GOAL Ensure compliance with legislation and regulation
6.1. STRATEGIC OBJECTIVE Introduce a comprehensive Compliance and Enforcement framework
SO 6.1.6 Compliance with legislation and regulations
Compliance with legal prescripts:1. Procurement of Postal Monitoring Equipment2. Procurement of BSMonitoring Equipment
Procurement of Broadcasting and Postal Monitoring Equipment
• Initially bidders were unable to meet the specifications.
• The process was revisited in 2013/14 and the contract for the Broadcasting Monitoring Equipment has been finalised and the equipment has been delivered.
• Ministerial authorisation has been sought to procure the postal monitoring equipment abroad.
Performance – Not AchievedPerformance – Not Achieved
47
Output No. Key Outcome Key OutputTarget
2012/2013Performance against Targets 2012/13
and Reasons for Variance
SOOG7 STRATEGIC OUTCOME ORIENTATED GOAL Strengthen and modernise ICASA
7.1. STRATEGIC OBJECTIVE Improved operational processes and performance
SO 7.1.1 To Automate systems and processes
Automated Spectrum Management by 31 March 2015
Migration of existing systems to new Spectrum Management system
The procurement of the software was not finalised in the financial year but is being attended to in 2013/14.
SO 7.1.2 Integrated Customer Relation Management System - (CRM)
New CRM system fully implemented for Consumer Affairs and Regional Offices
The terms of reference for the CRM system took longer than anticipated. This delayed the appointment of an implementation partner.The software licenses have been procured and the specifications for the Consumer Affairs Division have been completed.
SO 7.1.3 Integrated Human Resources Management System - (HRM)
New HRM system implemented The RFQ to select a service provider to compile the terms of reference was advertised three times. Only one company provided a response each time. SCM to re-issue the bid in the new year
SO 7.1.4 Improved Governance systems
Complete review and implementation of new organisational structure
Developed and Approved organisational re-alignment road map
Service provider not yet appointed and the analysis and recommendations are yet to be started. The process of preparing the terms of reference and the appointment of the service provider took longer than planned.
Developed and Approved Change Management Framework
Developed and Approved Change Management Framework available when service provider appointed. The process the appointment of a service provider took longer than it was planned for.
Performance – Not AchievedPerformance – Not Achieved
48
Output No. Key Outcome Key OutputTarget
2012/2013Performance against Targets 2012/13
and Reasons for Variance
SOOG7 STRATEGIC OUTCOME ORIENTATED GOAL Strengthen and modernise ICASA
7.1. STRATEGIC OBJECTIVE Improved operational processes and performance
SO 7.1.5 Improved skills and leadership within the organisation
Organisational Core and Leadership Competencies
Developed and Approved plan on Organisational Core and Leadership Competencies
Approved plan on Organisational Core and Leadership Competencies are yet to be developed as no service provider appointed yet. The process of drawing the terms of reference and the appointment of the service provider has taken longer than planned.
Developed and Approved organisational Dual Career Path model
Dual Career Path model not yet developed and approved as the process requires employees and management participation, also responses from divisions has been poor.
Approved and Implemented Talent Management strategy
Talent Management Strategy not developed, approved or implemented due to no appointment of an Organisational Re-alignment Consultant.
SO 7.1.7 Improved financial governance systems
Strengthened financial & other internal controls
Implementation of the Flowcentric and the Clickview Systems
Implementation of the Flowcentric and the Clickview Systems have not been Achieved due to legal challenges with the service provider
SO 7.1.8 Self-funding model for ICASA
New funding model for ICASA and engage stakeholders (National Treasury and DoC)
Proposed Self-funding model alternatives for ICASA
ICASA is awaiting feedback on proposed self-funding model alternatives, following submission of all documentation requested by DoC and Pygma consultants
Performance – Not AchievedPerformance – Not Achieved
49
Output No. Key Outcome Key OutputTarget
2012/2013Performance against Targets 2012/13
and Reasons for Variance
SOOG8 STRATEGIC OUTCOME ORIENTATED GOAL
Promote competition
8.1. STRATEGIC OBJECTIVE Remove barriers to competition
SO 8.1.1 A
Promote diversity and choice of broadcasting services
Licences for commercial broadcasting services
Analysis report on applications for subscription broadcasting service and I-ECNS licences
Council has resolved to extend the timelines for this project by a period of three months, due to the unforeseen delays in correcting applications and consideration of confidentiality requests. The Authority has dealt with the request for confidentiality. On 07 December 2012, the applications were published for public comments and responses for a period of 51 working days. The service provider to assist in the analysis of the business plan, financials and market research for the applications has been appointed. The analysis report for subscription broadcasting services licence applications has been prepared excluding the work that need the services of the expert service provider and public hearing report.
Performance – Not AchievedPerformance – Not Achieved
50
Output No. Key Outcome Key OutputTarget
2012/2013Performance against Targets 2012/13
and Reasons for Variance
SOOG8 STRATEGIC OUTCOME ORIENTATED GOAL
Promote competition
8.1. STRATEGIC OBJECTIVE Remove barriers to competition
SO 8.1.1B
Promote diversity and choice of broadcasting services
Licences for commercial broadcasting services
Analysis report on applications for subscription broadcasting service and I-ECNS licences
Council has resolved to extend the timelines for this project by a period of three months, due to the unforeseen delays in correcting applications and consideration of confidentiality requests. The Authority has dealt with the request for confidentiality. On 07 December 2012, the applications were published for public comments and responses for a period of 51 working days. The service provider to assist in the analysis of the business plan, financials and market research for the applications has been appointed. The analysis report for subscription broadcasting services licence applications has been prepared excluding the work that need the services of the expert service provider and public hearing report.
Performance – Not AchievedPerformance – Not Achieved
51
Output No. Key Outcome Key OutputTarget
2012/2013Performance against Targets 2012/13
and Reasons for Variance
SOOG8 STRATEGIC OUTCOME ORIENTATED GOAL
Promote competition
8.1. STRATEGIC OBJECTIVE Remove barriers to competition
SO 8.1.1C
Promote diversity and choice of broadcasting services
Licences for commercial broadcasting services
Analysis report on applications for commercial sound broadcasting services
Council has resolved to extend the timelines for this project by a period of six months, due to the unforeseen delays in correcting applications, consideration of confidentiality requests and extension of the closing date of the Invitation To Apply. The Authority has dealt with the request for confidentiality. On 07 December 2012, the applications were published for public comments and responses for a period of 51 working days. An analysis report for the Secondary Markets licence applications excluding the work that need the services of the expert service provider has been prepared.
Performance – Not AchievedPerformance – Not Achieved
52
Output No. Key Outcome Key OutputTarget
2012/2013Performance against Targets 2012/13
and Reasons for Variance
SOOG8 STRATEGIC OUTCOME ORIENTATED GOAL
Promote competition
8.1. STRATEGIC OBJECTIVE Remove barriers to competition
SO 8.1.1 Promote diversity and choice of broadcasting services
Licences for commercial broadcasting services
Analysis report on applications for commercial sound broadcasting services
Council has resolved to extend the timelines for this project by a period of six months, due to the unforeseen delays in correcting applications, consideration of confidentiality requests and extension of the closing date of the Invitation To Apply. The Authority has dealt with the request for confidentiality. On 07 December 2012, the applications were published for public comments and responses for a period of 51 working days. An analysis report for the Primary Markets licence applications excluding the work that need the services of the expert service provider has been prepared.
Performance – Not AchievedPerformance – Not Achieved
53
Output No. Key Outcome Key OutputTarget
2012/2013Performance against Targets 2012/13
and Reasons for Variance
SOOG8 STRATEGIC OUTCOME ORIENTATED GOAL
Promote competition
8.1. STRATEGIC OBJECTIVE Remove barriers to competition
SO 8.1.2
Improved levels of competition in the ICT sector
Regulations governing pro-competitive interventions into the broadcasting signal distribution market
Draft Regulations for Signal Distribution market including price control framework
Approval of findings document deferred to April 2013. Draft regulations to be published in September 2013.
SO 8.1.4 Development of pro-competitive remedies and implementation thereof
Revised Number Portability regulations to promote consumer choice
Research report on review of the existing Number Portability regulations
Project postponed to 2014/2015 due to…..
SO 8.1.5 Accounting Separation Regulations for wholesale call termination
Accounting Separation Regulations
Draft regulations were developed. Project to be completed in the next financial year.
Performance – Not AchievedPerformance – Not Achieved
54
Output No. Key Outcome Key OutputTarget
2012/2013Performance against Targets 2012/13
and Reasons for Variance
SOOG8 STRATEGIC OUTCOME ORIENTATED GOAL Promote competition
8.2. STRATEGIC OBJECTIVE
Ensure South African retail prices of ICT services fairly reflect costs
SO 8.2.1
Fair prices for Electronic Communication Services (ECS) accessible by all South Africans by 2020(voice and data services including broadband)
Regulatory Strategy for ECS that promotes effective competition and greater network coverage
Gazetted price benchmark report on prices across the ECS value chain
Price benchmarking report is due for delivery in June 2013. The project is due for completion in 3rd Quarter 2015.
QUESTIONS ?QUESTIONS ?
55
Thank you Thank you DankieDankie
Re a lebohaRe a lebohaRe a lebogaRe a lebogaSiyabongaSiyabonga
InkomuInkomuRo livhuwaRo livhuwa
EnkosiEnkosi56