DIRCO received risk management Maturity assessment level 5, in accordance with the National Treasury’s Maturity Framework
Maturity level 5 indicates that risk management has a significant influence on the control environment and that risks aggregated and analysed bring substantial intelligence with regard to decision making in the department.
The department maintains and implements a fraud and corruption prevention policy and strategy as part of its commitment to manage fraud and corruption risks
The department maintains and implements a fraud and corruption prevention policy and strategy as part of its commitment to manage fraud and corruption risks
Reviews and updates the Fraud and Corruption Prevention Policy in line with its risk management framework
The department has developed a Whistle-blowing Policy in line with the Fraud and Corruption Prevention Policy
The suspected indication of fraud or corruption is either reported internally through appropriate channels (supervisors and/or the Risk Management Unit) or anonymously through the National Anti-Corruption Hotline.
Internal Audit
Internal Audit
During the reporting period, Internal Audit performed the following audit types at both Head Office and missions:
Compliance audits
Special audits
Consultations and or management requests
Information and communications technology audits
The Audit Committee has complied with its responsibilities arising from Section 38 (1) (a) (ii) of the Public Finance Management Act, 1999 and Treasury Regulation 3.1.13.
The Audit Committee has also adopted appropriate formal terms of reference as its Audit Committee Charter, and has discharged its responsibilities in compliance with these terms of reference during the reporting period.
The Audit Committee has met at least four times during the reporting period, which is the minimum required in terms of its charter.
Number of approved posts: 2564 (excluding Locally Recruited Personnel)
Number of filled posts: 2233
Number of vacant posts: 331
Vacancy rate: 12.9% as compared to 14,8% in the previous financial year
Migration and placement of incumbents took long due to consultations of employees affected
Only identified critical posts not affected by the new structure were prioritised for filling
Full implementation of the structure is being done during the current financial year, after budget responsibility codes for new components could only take effect from 1 April 2016.
Full implementation of the structure is being done during the current financial year, after budget responsibility codes for new components could only take effect from 1 April 2016.
Non-critical posts will be identified to be frozen/abolished in order to implement the compensation of employees’ ceiling as instructed by National Treasury
62.5% (5 out of 8) disciplinary cases were finalised within 90 days as prescribed
62.5% (5 out of 8) disciplinary cases were finalised within 90 days as prescribed
47.2% (17 out of 36) grievances handled / finalised within 30 days
83% (237 out of 287) SMS members submitted signed Performance Agreements by the deadline
83% (237 out of 287) SMS members submitted signed Performance Agreements by the deadline
One (1) SMS member was charged with misconduct for failure to submit performance agreement. The member, however, was not found guilty after the disciplinary hearing
The remainder of those who did not submit on time was due to the fact that their job descriptions were changed during the organizational review. As such they were given the grace period to submit after the deadline.
Some SMS members were promoted and still within the three-months eligibility period
The Department spent 102 per cent (R 6.6 billion) of its appropriated allocation of R 6.5 billion which represent a net overspending of R134 million.
The Department spent 102 per cent (R 6.6 billion) of its appropriated allocation of R 6.5 billion which represent a net overspending of R134 million.
The department recorded foreign exchange loss amounting to R134 million due to the depreciation of the Rand against major currencies which is attributable to expenditure incurred in missions abroad. However, the department also recorded savings on programme 3 and 4 which is as a result of cost containment measures that were implemented during African Union (AU) Summit and Forum on China-Africa Cooperation (FOCAC) Summit respectively and the unspent operational budget has been viremented to cover overspending in Programme 5.
During the period under review, the Programme continued to provide support with regard to the development of the overall policy and management of the department through efficient, effective and economical utilisation of scarce resources.
During the period under review, the Programme continued to provide support with regard to the development of the overall policy and management of the department through efficient, effective and economical utilisation of scarce resources.
The expenditure for programme 1 is R1.4 billion, which represents an increase of twelve per cent as compared to the 2014/15 financial year. The increase in expenditure is due to the spending on construction projects for Dar Es Salaam and Lilongwe.
Expenditure increased significantly from R3.1 billion in 2014/15 to R3.6 billion in 2015/16 at nominal growth rate of sixteen per cent. This is mainly attributed to the depreciation of the Rand against other major foreign currencies.
Expenditure increased significantly from R3.1 billion in 2014/15 to R3.6 billion in 2015/16 at nominal growth rate of sixteen per cent. This is mainly attributed to the depreciation of the Rand against other major foreign currencies.
The depreciation of the Rand resulted in high exchange rates, thus increasing operational costs incurred in missions abroad, including salaries and wages as well lease payments for office and residential accommodation. Consequently, the expenditure for programme 2 has exceeded the budget by R134 million.
Expenditure increases from R485.1 million in 2014/15 to R523.1 million in 2015/16 at nominal growth rate of eight per cent. The savings are mainly due to the cost containment measures that were implemented for operational expenditure.
Expenditure increases from R485.1 million in 2014/15 to R523.1 million in 2015/16 at nominal growth rate of eight per cent. The savings are mainly due to the cost containment measures that were implemented for operational expenditure.
Expenditure for programme 4 increased from R275.9 million in 2014/15 to R333.2 million in 2015/16 which represents an increase of twenty one per cent as compared to the 2014/15 financial year. The savings are mainly due to the cost containment measures that were implemented during African Union (AU) Summit and Forum on China-Africa Cooperation (FOCAC) Summit.
Expenditure for programme 4 increased from R275.9 million in 2014/15 to R333.2 million in 2015/16 which represents an increase of twenty one per cent as compared to the 2014/15 financial year. The savings are mainly due to the cost containment measures that were implemented during African Union (AU) Summit and Forum on China-Africa Cooperation (FOCAC) Summit.
Programme 5 had an overspending resulting from foreign exchange rates losses in relations to the payment of membership fees and South Africa's compulsory assessment contribution to the international organisations namely, United Nations, African Union.
Programme 5 had an overspending resulting from foreign exchange rates losses in relations to the payment of membership fees and South Africa's compulsory assessment contribution to the international organisations namely, United Nations, African Union.
The expenditure decreased from R863 million in 2014/15 to R734 million in 2015/16 which represents a decrease of fifteen per cent as compared to the 2014/15 financial year.
A post audit workshop was held with AG in order to mutually understand the way forward to address findings
A post audit workshop was held with AG in order to mutually understand the way forward to address findings
The AG explained the root causes of findings to management
The department committed to the following, among others:
To resolve the asset issues at missions and at Head Office by conducting monthly assets verifications
To seek audience with the Office of the Accountant General (NT) to discuss the application of the modified cash standard in respect of the Heritage Assets identification