annrep 1011 1 to 148.qxp - Department of Defence

D E P A R T M E N T O F D E F E N C ETable D.1: DOD Risks and Mitigation Factors for the FY2010/11 (continued)RiskMitigation ActionResponsibleService/DivisionActual AchievementInadequate fundingfor human resourceexpenditure couldresult in a furtherburden on DOD'sbudget vote/allocationThe declining Randvalue of the DODbudget could negativelyimpact on theDepartment's operatingbudget andcapital acquisitionsbudgetInadequate facilityinfrastructure maintenanceand renovationcapacity resultingin unacceptablefacility repair andrenovation backlogthat detrimentallyimpacts on forcepreparation andemploymentDOD will engageNational Treasury foradditional fundingDOD will engageNational Treasury foradditional funding toaddress deficiencies inthe capital acquisitionbudgetImmediately establishbilateral forum betweenDPW and DOD leadingtowards migrating somecustodian functions tothe DOD, and developmentof an effectivememorandum of understanding.Finalize the developmentof the Works Capabilityto assume some of themigrated functions fromDPW to address capacityinadequaciesCFOCFOC LogNational Treasury was engaged during theAdjustment Budget process for additional funding.Rm352,4 was allocated to DOD's Budget forincrease in the cost of living and housingallowance and the deficit in terms of the newsalary dispensation for military personnel, wasmade available by means of internal savingsThe DOD presented policy proposals foradditional funding that amounted to R2, 600 billionfor FY2010/11 to the National Treasury.Due to economic circumstances and other, morepressing, priorities of government the NationalTreasury only provided an additional amount ofR650 million to the DOD for the FY2010/11. TheDepartment continues to engage with NationalTreasury on the policy proposals for the additionalfundingThe Council for Scientific Industrial Research(CSIR) is developing a DOD User AssetsManagement Plan (UAMP) that will address therapid and escalating deterioration of the Defenceimmovable assets. The condition assessment willenable the DOD to bridge a maintenance gapand determine the immovable assets book value.However, the limited capability to manage facilitymaintenance funds via NDPW continues tocontribute further to the collapse and deteriorationof facilities. The DOD Works Capabilitystructures and migration were approved. TheMaintenance Programme has progressed wellwith the completion of 10 projects with a further13 projects in progress. Simultaneously, a SkillsDevelopment Programme is underway with 674students undergoing specialised facility relatedtraining and 40 students have qualifiedIncompatible systemscould result inineffective and inefficientperformanceLack of single logisticsmanagementinformation systemdue to historic fragmentationsystemenhancements. Thishas led to inabilityto comply withNational Treasuryasset managementrequirementsincluding financialreporting leading toaudit qualificationAnalysis of all the systemsin the Departmentwith the intention of integrationApproaching NationalTreasury for permissionto procure DOD integratedsystemEmployment of outsourced capabilities toassist in addressing auditqualification and assetverification challenges.Establishment of IntegratedProject Team toinvestigate all availableoptions to develop a singlelogistics informationsystemGITOC LogA task team has been appointed by the A/GITOand the CMIS to draft the DOD ICT Strategythat will enable the effective and efficient alignmentof all legacy and new ICT requirements insupport of the DOD's business requirement. TheICT Strategy is to be completed by end of July2011An Integrated Financial Management System forsupply chain management and procurementimplementation charter between NationalTreasury and the DOD was formulated. ElevenDOD units have been identified as lead sites andthe implementation of the asset register and procurementwill commence from 1 April 2011138ANNUAL REPORT FY 2010/2011