Department of Defence Annual Report 2008-2009

| Department of Defence | Vote 19 |
REPORT OF THE ACCOUNTING OFFICER
for the year ended 31 March 2009
Report by the Acting Accounting Ofcer to the Executive Authority and Parliament of the Republic of
South Africa.
1. General Review of the State of Financial Affairs
1.1 Strategic decisions and issues
This section provides an overview of the strategic positioning that the DOD has taken as
directed by the Executive Authority and the Accounting Ofcer during the period under
review to improve its resource base as well as to maximise the efcient, effective, economic
and equitable accountability thereof.
1.1.1 Strategic decisions
During the period under review the following strategic decisions were conrmed:
1.1.1.1 In August 2008, the DOD submitted to Cabinet for it’s consideration the Defence Update
document. This document sought to strategically align the DOD with the strategic framework
of Government. Cabinet decided to stay the decision on this matter until after the 2009
general elections.
1.1.1.2 The status of the Defence Update document, as reected above, has had a bearing on the
reprioritisation of the Strategic Capital Acquisition Master Plan.
1.1.1.3 In line with the 2008 APEX Priorities, the DOD issued strategic guidelines for purposes
of ensuring the execution of APEX Priorities applicable to the DOD. The DOD further
established a mechanism to track progress on APEX Priorities implementation in the DOD.
1.1.1.4 In a bid to enhance good corporate governance in the DOD, the Minister of Defence approved
the establishment of an Internal Audit Function. It is anticipated that the implementation of
this structure would help the DOD to alleviate negative audit ndings. To this end, a nancial
management ofce was establish in the ofce of the CSANDF in August 2008.
| Financial Performance |
1.1.1.5 The year under review was characterised by a decisive intervention to raise the levels of
awareness of the PFMA in general and Section 45 in particular with regards to nancial and
resource responsibilities, internal controls and asset management amongst all departmental
employees.
1.1.2 Strategic issues
During the period under review the following progress was made on identied strategic issues:
1.1.2.1 Defence Capabilities. The cost of Defence capabilities required to satisfy the DOD’s
legislative mandate is higher than the current and projected budget allocation. The risk arising
from this mismatch is being addressed through various interventions including dening a new
Defence strategy and consulting Cabinet.
1.1.2.2 DOD Infrastructure. The proper repair and maintenance of the DOD facilities portfolio has
been affected by the limited nancial resources and limited capacity of the Department of Public
Works. The situation is being addressed through the Infrastructure Delivery Improvements
207 Annual Report FY 2008 - 2009