1. State IT Agency Briefing on Annual Report 2014/15 to Parliamentary Portfolio Committee on Telecommunications and Postal Services 16 October 2015

2. Strategic imperatives Improved customer satisfaction and service delivery. Ongoing review of government data security in line with best practices. Upgraded and refreshed network infrastructure. Transparent, efficient procurement systems and processes. Highly motivated and skilled employees. 2

3. SITA’s Transformational Journey 3

4. Six Key Programmes Strategic ProgrammeGoals Programme 1: Procurement To address all issues relating to delayed procurement turnaround times, removing customer pain points, and transforming the procurement function Programme 2: Service Delivery To provide high-quality IT services to enable government to deliver efficient and convenient services through the use of ICT Programme 3: Infrastructure To optimise the provision of SITA’s IT infrastructure services in order to increase availability, flexibility, scalability, predictability and security Programme 4: Financial Sustainability To ensure an effective and efficient financial management, and ensure financial growth and sustainability Programme 5: Organisation To build and maintain organisational capability to enable SITA to achieve its strategic imperatives and becomes an employer of choice within the ICT industry Programme 6: Governance and Administration To provide leadership, strategic management, governance, risk and resource management in line with government-accepted norms and standards 4

5. FY2014/2015 Annual performance results 5 BSC Perspectives TargetsAchieved % Achieved Not Achieved % Non- achievement Comments Financial 4125.00375.00 1.Revenue 1.Profitability 1.CAPEX Customer 171588.24211.76 SMME Spend Procurement Contract finalisation Internal Processes 2150.001 CMMI Learning and Growth 11100.0000.00 Total 241875.00625.00

6. FY2014/2015 Annual performance results 6

7. 7

8. Trend Analysis of Non Compliance over a period of three Financial Years 8

9. 9

10. Areas of non-improvement over a period of three financial years (2012/13 to 2014/15) Business Area Auditor-General Finding Action Plan Supply Chain Management No declaration of interest by Bid Evaluation Committee (BEC) members. Resources have been allocated and all declarations and associated documentation are maintained and controlled through a document control system is. Contracts not monitored for performance. In April 2015, SCM developed a supplier performance monitoring plan for execution by SITA lines of business. The final deliverable of the plan is due end September 2015. A tender to develop an appropriate supplier performance tool is in process. Lack of monitoring of actual expenditure against the approved contract value. A process to link requisitions to contracts is being developed on SITA’s ERP system to allow the involvement of Management Accountant and the Cost Centre Owner in approval process and monitoring of budget for particular contracts (Implementation date: 31 December 2015). Turnaround times exceeded for ad-hoc RFQs Internal controls to track turnaround times have been implemented and are monitored through weekly, bi-weekly and monthly status reporting. Evergreen Contracts The transversal contract to replace the tenders has been issued to market, one is under evaluation (Original Equipment Manufacturer) whilst the other tender (Resellers) has recently been published (Implementation date: 31 March 2016). Contract extensions – lack of proper planning The CEO has issued a Corporate Communique indicating that all Business Cases that relate to requests for deviation from normal procurement process be submitted to his office for approval in order to ensure that instances that the need to deviate are warranted and that the basis thereof is not as a result of poor planning from the service requestor. 10

11. Areas of non-improvement over a period of three financial years (2012/13 to 2014/15) Business AreaAuditor-General FindingAction Plan Information Technology No formal Business Continuity and Disaster Recovery Plans. The development of the SITA business continuity plans have been assigned to Corporate Risk Management and Business Impact Assessments are currently being conducted. The internal IT Disaster Recovery Plan (DRP) has been developed and approved. An IT governance framework steering committee is in the process of being established to avoid service continuity deficiencies. Internal IT has completed a business impact readiness analysis in preparation for the SITA business continuity and disaster recovery plan initiative. The infrastructure for the disaster recovery site in KZN has been installed and testing is taking place. (Implementation date: 31 March 2016). Company Secretary Interest not declared by employees. A SITA ERP based Declaration of Interest system has been implemented. Provision has been made for regular updates of existing declarations and declarations by new employees. Current rate of declaration is 93% of all employees. Finance a) Accounting system does not support compliance with GRAP. The Oracle ERP Capability Improvement Project has been implemented to deal with audit findings that are system related and to ensure that all root causes are appropriately addressed (Implementation date: 31 January 2016). b) Budget not timeously submitted. Management has established a Budget Committee with approved Terms of Reference. The Committee is responsible for assisting the Chief Executive Officer and the Chief Financial Officer with the development and monitoring of the budget and the roll-out of the budget process which will be in terms of approved guidelines and approved cycle. 11

12. Statement of Financial Position 12

13. Statement of Financial Performance 13

14. Thank You