Department of Defence Annual Report 2008-2009

| Department of Defence | Vote 19 |
REPORT OF THE ACCOUNTING OFFICER
for the year ended 31 March 2009 (continued)
06/07 AG
ANNUAL
REPORT
REF
RECOMMENDATIONS MADE
IN SCOPA RESOLUTIONS
DATED 8 FEB 08
DOD PROGRESS ON ACTION PLANS
Page 194 d) a feasibility study is conducted by the
SAMHS to determine whether outsourcing
their catering services at good quality
hospitals will be cost effective.
Par 8 - Other shortcomings identied during
the audit. The Committee recommends that the
Accounting Ofcer ensures that:
a) controls are put in place to ensure that
processes are followed as instructed in
the guidelines and policies especially with
regards to the budget;
The feasibility of outsourcing catering services at SAMHS
military hospitals was evaluated at corporate level from a
strategic point of view. Based on this evaluation, a corporate
decision was taken not to outsource or commercialize the
SAMHS catering capability, but to enhance the SAMHS
catering capacity to its clientele and other stake holders, by
conventional military catering methodology. The SAMHS
catering service will be militarized at all applicable SAMHS
Force Structure Elements, including the availability of
professional uniform dieticians, ensuring dietary and
nutritional advice to patients and troops alike.
The Logistics Division issues guidelines with regards to
ration prices to Services and Divisions on an annual basis.
The Hospitality Workgroup consisting of representatives
from the Procurement Service Centers and the Logistics
Division determines the tariffs.
b) unnecessary costs are avoided; and Areas of challenge experienced in contract management
include the pre-contract administration such as the legal
expertise necessary in the development of bid terms of
reference, the actual contracting such as legal quality control
to ensure that the state is protected and post contract
administration such as supplier performance, dispute
management, stakeholder management and litigations.
The two DOD Corporate Procurement Centres utilise the
services of the DOD Legal Division on an ad hoc basis as
and when required to address the challenges experienced in
contract management.
c) disciplinary actions are taken against
ofcials, if processes are not followed as
instructed by the PFMA.
No disciplinary actions were taken – see comments in subpar
a and b above.
| Financial Performance |
235 Annual Report FY 2008 - 2009