1. I C A S A 2011-2012 Annual Report Supplementary Presentation Presented by Dr Stephen Mncube Chairperson, Councillors, CEO and CFO October 2012 Parliamentary Portfolio Committee on Communications, Cape Town

2. Corrective Action 2 Basis for Qualified Audit Predetermined Objectives Reasons for major variances not explained Performance targets not specific Performance targets not measurable Achievement of planned targets The Predetermined Objectives for 2012/13 have been revised accordingly and will be reviewed before March 30, 2012 by the Auditor General before the Authority’s 5-year plan is approved by the Portfolio Committee on Communications..

3. Corrective Action 3 Basis for Qualified Audit Leadership 1 The accounting officer did not exercise adequate oversight responsibility regarding financial and performance reporting and compliance and related internal controls. The institution did not adequately establish and communicate policies and procedures to enable and support understanding and execution of internal control objectives, processes and responsibilities on predetermined objectives. ICASA now holds Quarterly Review sessions to evaluate both the impact and financial expenditure on deliverables according to the business plan. The Q1 submission before the PPCC is an example of this. In addition, a new individual Performance Management Policy has recently been finalised and approved.

4. Corrective Action 4 Basis for Qualified Audit Leadership 2 The accounting officer did not implement effective HR management to ensure that adequate and sufficiently skilled resources are in place and that performance is monitored. The accounting officer did not establish an adequate IT governance framework that supports and enables the business, delivers value and improves performance. The AGSA finding on HR is specific to the Finance Division. ICASA has filled vacancies with skilled staff members in the Revenue Collection. Performance Hearings have been held, and will be concluded by the end of the FY An IT Review Committee and IT Master Plan are in place. A Request for Quotation (RFQ) has been submitted requesting vendors to tender for the implementation of COBIT and ITIL at ICASA.

5. Corrective Action 5 Basis for Qualified Audit Leadership 3 Actions are not taken in a timely manner to address the risks relating to the achievement of complete, relevant and accurate financial reporting. A Finance Turnaround Plan is in place