1. 2ND QUARTER PERFORMANCE REPORT GAUTENG DEPARTMENT OF e-GOVERNMENT 2016/2017

2. TABLE OF CONTENTS FINANCIAL PERFORMANCE REPORT
1.1 Expenditure Analysis
1.2 Summary of Financial performance
NON-FINANCIAL PERFORMANCE REPORT
2.1 Overview of Non-Financial Performance
QUESTIONS AND ANSWERS

3. OVERVIEW OF FINANCIAL PERFORMANCE
FINANCIAL PERFORMANCE REPORT

4. EXPENDITURE ANALYSIS 56 440 36 864 19 576 65% 225 760 76 467 149 293
PROGRAMMES
QUARTER 2
TOTAL APPROPRIATION
Straight line Projections
R’000
Actual Expenditure
Variance %
Spent (Straight line)
Appropriation
YTD Expenditure
Administration
56 440
36 864
19 576
65%
76 467
34%
Policy Planning, Strategy Development and Support Services
62 100
41 305
60%
45%
Solutions, Systems&
Operations
86 712
51 343
63%
41%
Regulations, Compliance & Public Relations
6 134
805
5 329
13%
24 534
6 503
18 031
27%
TOTAL
61%
ECONOMIC CLASSIFICATION
Current Payments
57%
40%
Compensation of employees
76 888
49 110
31%
Goods and services
92 450
79 379
54%
47%
Transfers
137 85 52
62%
550
190
360
35%
Capital payments
6 069
17 058
281%
24 274
17 450
6 824
72%

5. BRIEF SUMMARY OF OVER/UNDER EXPENDITURE
Reasons for Deviations
Compensation of Employees
Delays in approval of the new e-Government structure have resulted in a variance in Compensation of Employees. The department is constantly engaged in discussion with DPSA to finalize the approval.
Compensation of Employees budget was prepared with the anticipation that the e-Gov structure would be approved timeously,
The department has since obtained Treasury approval to shift the savings from Compensation of Employees budget to Goods and Services as part of 2016/17 budget adjustment.
Goods and services
Certain services rendered in September were invoiced in October, hence the under spending at the end of Q2.
Capital payments
The spend on capital payment is mainly due to acquisitions of capital assets for related to the continued rollout the GBN connectivity project.

6. 2. NON-FINANCIAL PERFORMANCE
OVERVIEW OF NON-FINANCIAL PERFORMANCE
2. NON-FINANCIAL PERFORMANCE

7. PROGRAMME 1
ADMINISTRATION

8. Outputs / key deliverables Actual performance against targets
ADMINISTRATION
Outputs / key deliverables
Quarterly
Target
Actual performance against targets
Challenges
Remedial Actions
Produce accountability reports
15 accountability reports
produced
Produced 15  accountability reports
None
Target Achieved
Payment of suppliers within 30 working days of receipt of invoices
100% of suppliers paid within 30 days from receipt of invoice
Paid 99% of suppliers within 30 days from receipt of invoice
There were two invoices that were not paid within 30 days of receipt of invoice:1 One supplier had an expired Tax Clearance
2.System could not pick up the vendor on the payment proposal because of the name change
The system generated (automated) message gets sent to the suppliers a month and a week before their tax clearance certificate expires. The system was mapped from the old system to the national treasury database.
Procurement spend of RFQs below R on township economy
30% procurement spend of RFQs below R on township economy
31% procurement spend of RFQs below R on township economy
SMS and SCM staff security vetted
100% of SMS and SCM staff security vetted
Vetted 100% of SMS and SCM staff security

9. Outputs / key deliverables Actual performance against
ADMINISTRATION
Outputs / key deliverables
Quarterly
Target
Actual performance against
targets
Challenges
Remedial Actions
Compliance to GDF Service Standards
96% Compliance to GDF Service Standards
99% Compliance to GDF Service Standards
None
Target Achieved
Accreditations of township based youth entrepreneurs facilitated
100 accreditations of township based youth entrepreneurs facilitated
100 accreditations of township based youth entrepreneurs facilitated
Training and job opportunities facilitated for unemployed ICT youth
200 Training and job opportunities facilitated for unemployed ICT youth
206 Training and job opportunities facilitated for unemployed ICT youth

10. Outputs / key deliverables Actual performance against
ADMINISTRATION
Outputs / key deliverables
Quarterly
Target
Actual performance against
targets
Challenges
Remedial Actions
Evaluation study published on the Employee Self Service application
Evaluation study published on the Employee Self Service application by 31 July 2016
Approved Evaluation study published on the Employee Self Service application by 31 July 2016
None
Target Achieved
Approved and published Annual Report
Annual Report was approved and published

11. POLICY PLANNING, STRATEGY DEVELOPMENT AND SUPPORT SERVICES
PROGRAMME 2
POLICY PLANNING, STRATEGY DEVELOPMENT AND SUPPORT SERVICES

12. POLICY PLANNING, STRATEGY DEVELOPMENT AND SUPPORT SERVICES
Outputs / key deliverables
Quarterly Target
Actual performance against targets
Challenges
Remedial
Actions
Approved GCR e-Government Governance Framework
GCR e-Government Governance Framework approved
Approved GCR e-Government Governance Framework
None
Target Achieved
GCR e-Government Community of Practice
1 GCR e-Government Communities of Practice established
Established 1 GCR e-Government Communities of Practice
GCR e-Government Forum’s ToRs finalised
GCR e-Government Forum’s ToRs finalised
2 GCR e-Government Forum’s ToRs signed off
Approved GCR e-Government Information Security Framework
GCR e-Government Information Security Framework
approved

13. SOLUTIONS,SYSTEMS AND OPERATIONS
PROGRAMME 3
SOLUTIONS,SYSTEMS AND OPERATIONS

14. SOLUTIONS,SYSTEMS AND OPERATIONS
Outputs / key deliverables
Quarterly Target
Actual performance against targets
Challenges
Remedial
Actions
G2C sites connected(Thusong Centres & Libraries)
6 G2C sites connected
Connected 6 G2C sites
None
Target Achieved
G2B sites connected(Economic zones, ikasi Labs, mLabs )
2 G2B sites connected
Connected 2 G2B site
G2G sites connected
(Departments and Agencies)
160 G2G sites connected
Connected 160 G2G sites
% Network Availability of Broadband Access and Access points
98% Network Availability of Broadband Access and Access points
99.98% Network Availability of Broadband Access and Access points
Entities assessed for cloud readiness
4 Entities assessed for cloud readiness
3 Entities assessed for cloud readiness
The Department is required to procure ICT infrastructure through SITA as per legislation.
The Department has engaged and obtained a commitment from SITA to manage the GPG private cloud on behalf of the provincial government. The Department is reluctant to migrate other entities onto the cloud whilst we are still in the process of finalising the new terms and conditions with SITA.

15. SOLUTIONS,SYSTEMS AND OPERATIONS
Outputs / key deliverables
Quarterly Target
Actual performance against targets
Challenges
Remedial
Actions
Entities connected to private cloud
3 entity connected to private cloud
0 entities migrated to the GPG private cloud
The Department is required to procure ICT infrastructure through SITA as per legislation.
The Department has engaged and obtained a commitment from SITA to manage the GPG private cloud on behalf of the provincial government. The Department is reluctant to migrate other entities onto the cloud whilst we are still in the process of finalising the new terms and conditions with SITA.
Implemented Common Technology Platform
Detailed Solution Architecture Designed
The detailed solution Architecture specifications (website) of the common platform has been completed
The process of designing the solution took longer than anticipated
The tender will be awarded during the month of October. The Detailed Solution Architecture will be completed before the end of the financial year.
%Projects completed on budget
90% projects completed on budget
None
Target Achieved

16. REGULATIONS AND COMPLIANCE
ICT SHARED SERVICES
PROGRAMME 4
REGULATIONS AND COMPLIANCE

17. REGULATIONS AND COMPLIANCE
Outputs / key deliverables
Quarterly
Target
Actual performance against targets
Challenges
Remedial Actions
% of Change & transformation Management activities completed per plan
50% of Change & transformation Management activities completed per plan
62.5% of Change & transformation Management activities completed per plan
None
Target Achieved
Number of Registered users (citizens)
400 Registered users
Registered users 71,906
Number of Registered users (business)
2 Registered users
Registered users 4,714
Number of Registered users (employees)
200 Registered users
Registered users 3,218
Number of Registered users (government)
1 Registered user
Registered user 2

18. ICT SHARED SERVICES REGULATIONS AND COMPLIANCE
Outputs / key deliverables
Quarterly
Target
Actual performance against targets
Challenges
Remedial Actions
Strategic partnership concluded
1 Strategic partnership concluded
1 Strategic partnership concluded with innovation hub
None
Target Achieved
Compliance to e-Government Township Economy Framework
Achieved Compliance to e-Government Township Economy Framework Achieved
Number of entrepreneurship workshops completed
6 entrepreneurship workshops completed
Completed 6 entrepreneurship workshops
Innovation and Incubation Collaboration Framework approved
Approved Innovation and Incubation Collaboration Framework

19. ICT SHARED SERVICES REGULATIONS AND COMPLIANCE
Outputs / key deliverables
Quarterly
Target
Actual performance against targets
Challenges
Remedial Actions
Identified entrepreneurs successfully incorporated into the e-Government service delivery programmes
1 Identified entrepreneurs successfully incorporated into the e-Government service delivery programmes
None
Target Achieved
Partnership Agreements
1 Partnership Agreements
1 Partnership Agreement concluded

20. ICT SHARED SERVICES HUMAN RESOURCE SERVICES
HEAD COUNT
Programmes
Post Establishment
Filled Positions
Vacancies
% Vacancies
Administration
288
268 20
6.9%
ICT Shared Services
171
156 15
8.77%
Human Resource Services
252
248 4
1.58%
TOTAL
711
672 39
5.4%
NB: The vacancy rate reported is based on the old GDF structure. The department is in the process of consultation with DPSA on the new e-Gov structure.

21. Responses to Questions
No.
Question
Response
With regards to the Compensation of Employees, the report indicated that the underspending was attributed to the delay in approval of the e-Government structure. Furthermore, it was reported that the Department is constantly engaged with DPSA to finalise the approval of the structure. What is the recent outcome of the meeting between the Department and DPSA?
The Department met with the DPSA to finalise the business case and the Service Delivery Model for the proposed structure.
The Department aims to have the structure approved for implementation in the 2017/18 financial year.

22. Responses to Questions
No.
Question
Response 2.
Due to the delayed approval of the structure, the report indicated that there will be shifting of funds from Compensation of Employees to the Goods and Services account. How much will be shifted and for what purposes under the Goods and Services account?
A total amount of R171 million was shifted from Compensation of Employees to Goods and Services.
The following projects received additional funding:
GBN; for the rollout of additional sites in targeted areas = R89 million
The DAV Centre; to consolidate the role of the DAV centre in the province through the facilitation of incubation programmes and the testing of provincial e-services = R22,8 million
To conduct the approved audit of ICT functions in the province = R4 million
To procure 2 mobile ICT busses to support all provincial campaigns that require ICT services = R6 million
To procure additional applications, enhanced security and ICT infrastructure for the province = R50 million.

23. Responses to Questions
No.
Question
Response
3. 
The second quarter report indicated that the Department has connected 6 G2C sites, 2 G2B sites and 160 G2G sites. With regards to Thusong Centres and Economic Development Zones, the Committee noted that some of the challenges identified were poor state of the infrastructure and delayed provision of computers. What is the status quo in pursued of the municipalities to refurbish the identified infrastructure?
During the rollout of the GBN Network, the Department has identified sites where municipalities have not provided the necessary infrastructure for citizens to access eGovernment services and applications through the GBN network. To address this, the Department has identified two sites in the West Rand District that it will refurbish to be the standard model for all Thusong Centres in the province. The Department will then engage municipalities to collaborate with the province in implementing the refurbishments required in all remaining Thusong Centres.
4. 
How many sites are functional / operational and when will others start operating in order to realize value for money?
There is currently one site that is operational, namely, the Maponya Mall site. The Department is engaging with municipalities to provide all sites with the required infrastructure.
The Department of e-Government has identified two sites in the West Rand that will be upgraded to be model sites for the province.

24. Responses to Questions
No.
Question
Response
5. 
With regard to entities that were not connected due to Telkom services termination and subsequent attainment of the commitment from SITA to ensure the management of the private cloud on behalf of provincial departments. How far is the Department with regard to finalizing the Terms and Conditions with SITA to avoid further delays?
The Department of e-Government is required to procure ICT infrastructure through SITA as per legislation. The Department has engaged and obtained a commitment from SITA to manage the GPG private cloud on behalf of the provincial government. The Department has agreed to cede the contract to SITA and the process regarding the migration of the remaining departments will commence in November 2016.
6. 
Can the Department explain the reasons for below 75% spending under all Programmes in the second quarter and also measures taken to ensure that the spending levels are maximised in the second half of the financial year?
The Department is required to spend 50% of its budget by the end of the Second Quarter of the financial year.
The expenditure was at 41%. The underspending was primarily as a result of 31% expenditure under Compensation of Employees. This is due to the Department awaiting approval of the proposed organisational structure.
Budgets are continuously reviewed and re-prioritization of funds from slow spending areas to high performing projects is implemented.

25. Responses to Questions
No.
Question
Response
7. 
With regards to e-Government regulations and compliance programme, the Committee noted that the Department spent only 13% of what was allocated for the second quarter. Can the Department please explain reasons for this under-spending?
The budget under the Regulations and Compliance programme relates to the Audit of ICT Functions across all provincial government departments. The audit will be conducted in the Fourth Quarter of the financial year.
Also, the Department will be procure 2 mobile ICT busses to support all provincial campaigns that require ICT services, under this programme.

26. 3. QUESTIONS AND ANSWERS
THANK YOU