2015/16 Annual Report presentation to the

Transcript:2015/16 Annual Report presentation to the:
2015/16 Annual Report presentation to the Portfolio Committee on Public Works 25 October 2016 1 Presentation Overview Contextual Background Organisational Strategic Overview Performance Highlights Governance Human Resource Management Financial Information Conclusion and Recommendations 2 3 1. Contextual Background Introduction 4 The IDT has been in transition for the past 6 years. The transformation process is aimed at maximising IDT’s contribution to the country’s development efforts. This process entails the development of an IDT long term sustainability Business Case. The Business Case under development by the NDPW proposes the reconstitution of the IDT into a Schedule 3A Public Entity responsible for social infrastructure programme and projects management and funded through a service fee charged on clients. The IDT has experienced portfolio growth of approximately 500 % within the last 7 years prior to the 2014/15 financial year, followed by a decline from the 2015/16 financial year arising from the tight fiscal environment and capacity gaps. Over the last four years, the IDT has also faced extensive operational and governance challenges that have threatened to undermine the past good performance and governance record as well as the financial viability of the IDT. The IDT’s impressive contribution to the national development efforts and good governance record has in the recent past, been brought to question due to the disclaimed audit opinion on its Annual Financial Statements for the 2014/15 and 2015/16 financial years. Inherited organizational challenges 5 Slow staff morale Long years of uncertainty arising from, among others, the prolonged transformation process, long drawn out process of finalising the IDT Business Case, under-capacitation of the organisation in critical areas have taken their toll on staff morale. The organisation has thus been compelled to work with staff members who were demotivated and whose loyalties to the organisation could not be guaranteed. Leadership void and capacity constraints within the Financial Services Unit (FSU) The former CFO was dismissed in December 2015 for various acts of commission and omission relating to financial administration. This, together with the sudden resignation of the Deputy CFO and vacancies in critical finance positions, namely, GM: Finance; SM: Financial Technical Specialists; SM: Financial Accounting and SM: Project Accounting resulted in a leadership void within the FSU. The void, exercabated by internal control weaknesses in certain financial areas, plunged the organization into financial governance “chaos”. Inherited organizational challenges – cont.. Loss of institutional memory IDT has in the past number of years