1. Briefing to the Parliamentary Portfolio Committee on Communications “2016 – 17 FY Annual Report”

2. Contents Organisational Mandate
Strategic Fit - Government’s Priority Outcomes
Strategic Outcome Oriented Goals: 2015/16 – 2019/20
Performance Summary 2016/17FY
Key Achievements by Programme
Key Non-Achievements by Programme
Human Resources
Governance
Complaints and Compliance Committee
AG Audit Outcome 2016/17 Financial Year
End

3. Organisational Mandate
ICASA is established pursuant to section 192 of the Constitution and in terms of the ICASA Act of 2000, as amended
Regulate electronic communications, broadcasting and postal sectors in the public interest
Ensure affordable services of high quality for all South Africans
ICASA is mandated to -
ICASA’s mandate is derived from:
The Constitution, 1996
ICASA Act, 2000
EC Act, 2005
Broadcasting Act, 1998
Postal Services Act, 1998
ECT Act, 2002

4. Strategic Fit - Government’s Priority Outcomes
An efficient, competitive and responsive economic infrastructure network
Outcome 12:
An efficient, effective and development–oriented public service
Outcome 14:
A diverse, socially cohesive society with a common national identity
Promote competition and network deployment for universal broadband provision
Government Long-Term Plans and Priority Outcomes
Ensure that the regulatory framework facilitates the use of ICTs as a platform to provide increased access to government services
NDP 2030
Facilitate the 3-tiers of broadcasting and specifically focus on a regulatory agenda that:
Promotes local content
Dissemination of information in the public interest
Public broadcasting content across all platforms

5. (Strategic Outcome Oriented Goals)

6. Strategic Goals: 2015/ /20
1. Universal Access to Broadband
2. Access to Communication Services at Affordable Prices
3. Improve Organisational Service Delivery
4. Common National Identity and Social Cohesion

7. ICASA Services to the Sector
Services to licensees
Spectrum Assignment
Interconnection / Facilities Leasing
Type Approval
& Allocation of numbers
Issue registration certificates
Licences & Channel Authorisations
Universal service obligations
Diversity of local Content
Quality of Service
Speedy resolutions of Complaints
Competitive pricing
Services to end-users
& audiences
The issuing of a licence grants the right to offer services. This right opens up access to services that you need to actually provide services to end-users such as spectrum and type approval.
In return for these services, ICASA has the power to impose supply-side measures that achieve the developmental goals of South Africa – the regulatory goals as discussed earlier

8. Performance Summary

9. Performance Summary by Programme
Outputs Achieved
Outputs Not Achieved
Total Outputs Planned
Licensing 10 2 12
Policy Research & Analysis 1 3 4
Engineering & Technology 5 8
Regions
Compliance and Consumer Affairs 7 9
Corporate Services
Finance
Human Resources
Internal Audit
Legal Risk Complaints & Compliance Committee
TOTAL 44 15 59
PERCENTAGES
74. 5%
25.5%
100%

10. Expenditure Summary by Programme
Programmes Summary Report - March 2017
Programme
2016/17
2015/16
Budget
Actual
(Over)/Under Expenditure
Programme 1: Administration
( )
Programme 2: Licensing
( )
( )
Programme 3: Engineering & Technology
Programme 4: Policy Research & Analysis
Programme 5: Compliance & Consumer Affairs
( )
( )
Programme 6: Regions
 TOTAL
( )
Chief Operations Officer
(Regulatory Projects Office)

11. Reasons for Over Expenditure
Actual operational expenditure (OPEX) was R (2.4%) less as compared to the budget amount of R
Normal projects actual spending of R was R (70.7%) more to the budget of R , the below were mainly the cause for the over spending: -
The project – ‘Local Elections Monitoring’ head count costs for the officers who were temporarily employed initially budgeted with lower scale packages and were actually salaried with higher scales going over by R
The projects – ‘Quality of Service(QoS) Monitored’ and ‘ Frequency Migration strategy/plan and updated National Band Plan and reviewed broadcasting plan’ both were under budgeted for resulting in in over spending of R
The number of small projects under support division make up balance of the remaining amount of R1m.
The actual amount incurred during the current financial is inclusive of the prior year accruals paid during the current financial year.
The over expenditure on repairs and maintenance was mainly due to the following:
Additional expenditure of R incurred for repairs on old motor vehicles
Additional expenditure of R incurred for maintenance of monitory equipment..
Chief Operations Officer
(Regulatory Projects Office)

12. Achievement by Programme

13. Programmes for 2015/16-2019/20FY 2.Licensing Purpose: To provide
1.Administration
Purpose:
To provide
coordinated
strategic
leadership,
management and
support to the
organisation to
deliver on its
mandate
2.Licensing
Purpose
To authorize,
issue, renew,
transfer and
revoke all types
of licence within
its jurisdiction for
the purpose of
socio-economic
development
and promotion
of competition
4. Engineering & Technology
To research on
radio frequency
spectrum, type
approval and
technical
standards to
provide support
to ICASA
Programmes as
needed
3. Policy Research & Analysis
To conduct
research and
policy analysis
into all the
regulatory
sectors in line
with ICASA
5. Regions
To enable
unimpeded
national provision
of electronic
communications,
broadcasting and
postal services
through compliance
and enforcement
6. Compliance & Consumer Affairs
To ensure licences
compliance with
terms and
conditions of their
licences, regulations
and requirements
and protect interest
of consumers

14. Programme 1: Administration - Achievements
Systems and processes integration from 30% to 50%
Increased ICASA communication reach from 10% to 40% on available communication platforms
Increased safety and OHS from 50% to 60%
Corporate Services
Revenue collected R on all invoices (99%)
Support to Programmes increased from 88% to 95%
Finance
Increase in talent sourcing from 20% to 50%
Increase in employee interventions from 20% to 50%
Human Resources
Internal Audit
Legal, Risk & CCC
Chief Operations Officer
(Regulatory Projects Office)
Audit plan completed from 84% to 85%
12 Issues tracking reports produced
Assurance reports increased from 1 to 4
Repository for analysed legal opinions and case law complet from 0 to 50%
Increase in risk maturity level from 1 to 2 beyond planned target
SLA agreement completion increased from 20% to 50%

15. Programme 2: Licensing - Achievements
IMT Spectrum ITA published
Regulation on exempted devices completed
Regulation on Premium Rated Services completed
Universal Access to Broadband
Public hearings and deliberations on number portability regulation completed
Licensing process for commercial sound broadcasting in the Northern Cape completed
Increase in type approval applications processed within 30 days from 18% to 65%
Increase in numbering applications from 94% to 96%
Increase in individual service licences amendments, transfers & control processed from 88.9% to 100%
Increase in new, amendments, transfer & control of spectrum licensing applications from 81% to 97.7%
ITA for Free To Air Commercial Television Broadcasting published
Access to Communication Services at Affordable Prices
Chief Operations Officer
(Regulatory Projects Office)

16. Programme 3: Policy Research & Analysis - Achievements
Draft community broadcasting regulatory framework published
Access to Communication Services at Affordable Prices
Chief Operations Officer
(Regulatory Projects Office)

17. Programme 4: Engineering & Technology - Achievements
Updated National Radio Frequency Plan approved
Final regulations on E-band and V-band published on 22 November 2016
Universal Access to Broadband
Updated and redefined broadband maps and infrastructure maps published on ICASA website
Quality of Service measured distance increased from 5600km by 15%
100% of spillover cases resolved within 60days
Improve Organisational Service Delivery
Chief Operations Officer
(Regulatory Projects Office)

18. Programme 5: Regions - Achievements
An additional ICASA regional office opened in Limpopo
Additional ECS/ECNS class licence processed in regional offices
Increase in resolution of interference cases from 90% to 92.5%
Improve Organisational Delivery
Increase in consumer awareness from 0 to 5%
All NATJOINTS instructions received executed
Common National Identity and Social Cohesion
Chief Operations Officer
(Regulatory Projects Office)

19. Programme 6: Compliance & Consumer Affairs - Achievements
Access to communication services at affordable services
RIA recommendations implemented
Consumer Advisory Panel published
3 ECS/ECNS compliance reports published
Consumer protection strategy and implementation plan completed
Increase in consumer complaints resolution from 75% to 80%
Improve Organisational Service Delivery
Common National Identity and Social Cohesion
Chief Operations Officer
(Regulatory Projects Office)
A compliance reported published on Municipal elections
A discussion document produced on ownership and control regulations on equity ownership and BBEEE

20. Non-Achievement by Programme

21. Programme 1: Administration - Non- Achievements
87% against 95% target ( suppliers paid out of suppliers’ invoices received)
71% against 100% target (197 SMMEs paid out of 277 SMME invoices received within 15 days
Finance
25% of Performance Management & Organisational Development strategy implemented against a target of 50%. Consultation process took longer than expected
33% of HRD initiatives implemented against a target of 50%. Consultation process took longer than expected
Human Resources
Internal Audit
Chief Operations Officer
(Regulatory Projects Office)
Compliance monitoring not completed. Data Analytics position took longer than expected to fill due to the poor level of candidates interviewed

22. Programme 2: Licensing – Non-Achievements
Licensing of 45% of MUX not completed. ICASA decided to extend the submission deadline on the request by the qualifying applicant
Universal Access to Broadband
Chief Operations Officer
(Regulatory Projects Office)

23. Programme 3: Policy Research & Analysis – Non-Achievements
Study on definition of priority markets that are susceptible to ex-ante regulation. Council approved the publication of the notice to conduct market inquiry. There was a delay in procurement of the service provider.
Access to Broadband Spectrum
Access to Communication Services at Affordable Prices
Chief Operations Officer
(Regulatory Projects Office)
Discussion Document on subscription broadcasting market will be published in May The project experienced unexpected delays at the information gathering stage.
Draft regulations on call termination. Published a notice and a questionnaire to conduct the review of 2014 procompetitive remedies

24. Programme 4: Engineering & Technology – Non- Achievements
5G forum establishment. On 6 September 2016 Council approved the terms of reference for the establishment of the 5G Forum. Invitation letters were sent to potential participants. Only 25% responded
Research report on TV White Spaces regulations. Two research reports have been produced by CSIR for ICASA. This represents 75% achievement of the target.
Universal Access to Broadband
Decrease turnaround time on type approval and spectrum licensing. 35% progress has been achieved. The target was unrealistic in terms of the project plan
Improve Organisational Service Delivery
Chief Operations Officer
(Regulatory Projects Office)

25. Programme 6: Compliance & Consumer Affairs – Non -Achievements
Obligations imposed for broadcasting ECS/ECNS and postal services from 4 licenses to 7. Draft USO amendments published, comments received.
Access to Broadband Spectrum
Improve organizational Service Delivery
Chief Operations Officer
(Regulatory Projects Office)
Final code for persons with disabilities regulations. Decision to publish a further draft Code for Persons with Disabilities for public comments extended the project beyond the FY

26. Human Resources

27. Personnel by Population Group
Chief Operations Officer
(Regulatory Projects Office)

28. Personnel Cost by Division
Chief Operations Officer
(Regulatory Projects Office)

29. Headcount and Vacancies per Occupational Level
Chief Operations Officer
(Regulatory Projects Office)

30. Employment Changes and Attrition Reasons

31. Governance

32. Council Members during the Year under review
Mr Rubben Mohlaloga
Ms Katharina Pillay (term of office ended on 11 February 2017)
Mrs Nomvuyiso Batyi (term of office ended on 11 February 2017)
Ms Botlenyana Mokhele
Dr Keabetswe Modimoeng
Mr Paris Mashile
Mr Peter Zimri

33. Council Committees Members’ Meetings Attendance

34. Complaints and Compliance Committee

35. Number of Complaints Adjudicated And Attendance

36. AUDIT OUTCOME 2016-2017 PRESENTED BY CFO: TEBOGO MATABANE

37. STATEMENT OF FINANCIAL POSITION
R thousand '000
2016/2017
2015/2016
Assets
Current Assets
Non Current Assets
Total Assets
Liabilities
Current Liabilities
Non Current Liabilities
Total Liabilities
Accumulated surplus
The Authorities assets exceeded it liabilities by R , the request to retain the surplus was approved by National Treasury.

38. STATEMENT OF FINANCIAL PERFORMANCE
R thousand '000
2016/2017
2015/2016
Revenue
Revenue from non exchange transactions
Revenue from exchange transactions
Total revenue
Expenditure
Employee-related costs
General expenses
Total expenditure
Surplus for the year

39. AG’s Assessment of 2016/17FY Performance
UNQUALIFIED AUDIT
Internal Control Deficiencies
[74.5 %] Organisational Performance

40. Achievements for 2016-17 Financial Year
Types of audit outcomes
Unqualified with findings
Unqualified with no findings
Unqualified with findings
Qualified with findings
Adverse with findings
Disclaimed with findings

41. Achievements for 2016-17 Financial Year

42. Audit Report Issues Audit Report
Audit Report matter: Non compliance on;
Unqualified
Usefulness of reported performance information - Programme 1: Policy Research and Analysis, Programme 2: Regions, Programme 3: Licensing, Programme 4: Compliance and Consumer Affairs & Programme 9: Legal, Risk and CCC;
The constitutional institution did not have a proper record management system to maintain information that supported the reported performance in the annual performance report; and
Irregular and fruitless and wasteful expenditure.

43. Audit Report Issues Audit Report
Audit Report matter: Non compliance on;
Unqualified
The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework as required by section 40(1) (b) of the PFMA Material misstatements of non-current assets, current assets and disclosure items identified by the auditors in the submitted financial statement were corrected, resulting in the financial statements receiving an unqualified audit opinion.
Contractual obligations and/or money owed by the entity were not met and/or settled within 30 days, as required by section 38(1)(f) of the PFMA and treasury regulation
Effective steps were not taken to prevent irregular expenditure amounting to R as disclosed in note 34 to the annual financial statements, as required by section 38(1)(c)(ii) of the PFMA and treasury regulation
Effective steps were not taken to prevent fruitless and wasteful expenditure amounting to R as disclosed in note 33 to the annual financial statements, in contravention of section 38(1)(c)(ii) of the PFMA and treasury regulation
Quotations were accepted from prospective suppliers who did not submit a declaration on whether they are employed by the state or connected to any person employed by the state, which is prescribed in order to comply with Treasury Regulation 16A8.3.

44. Audit Report Issues Audit Report
Audit Report matter: Non compliance on;
Unqualified
Contracts and quotations were awarded to suppliers whose tax matters had not been declared by the South African Revenue Services to be in order as required by Treasury Regulations 16A9.1(d) and the Preferential Procurement Regulations.
Goods and services of a transaction value above R were procured without inviting competitive bids, as required by Treasury Regulations 16A6.1. Deviations were approved by the accounting officer even though it was not impractical to invite competitive bids, in contravention of Treasury regulation 16A6.4.
Bid documentation for procurement of commodities designated for local content and production, did not stipulate the minimum threshold for local production and content as required by Preferential Procurement Regulation 9(1)
Commodities designated for local content and production, were procured from suppliers who did not submit a declaration on local production and content as required by Preferential Procurement Regulation 9(1)

45. FRUITLESS AND WASTEFUL EXPENDITURE
R thousand '000
2016/2017
2015/2016
Fruitless and Wasteful expenditure
Fruitless and Wasteful expenditure increase from R reported in 2016 to R in the current year. A total amount of R was condoned by Council during the financial year.
The fruitless and wasteful expenditure identified during the current year is under investigation in terms of Section 38 and 51 of the PFMA and disciplinary steps against relevant officials will be taken where it is proven the relevant officials committed the fruitless and wasteful expenditure as disclosed.

46. IRREGULAR EXPENDITURE
R thousand '000
2016/2017
2015/2016
Irregular expenditure
Irregular expenditure increase from R reported in 2016 to R in the current year. A total amount of R was condoned by Council during the current financial year.
The irregular expenditure identified during the current year is under investigation in terms of Section 38 and 51 of the PFMA and disciplinary steps against relevant officials will be taken where it is proven the relevant officials who committed the irregular expenditure as disclosed.

47. Thank You