Chapter 2 - P rogramme 1 - Department of Defence

| Financial Performance |
11. Asset Management
11.1 General
Annual Report FY 2007 - 2008 236
| Department of Defence | Vote 20 |
REPORT OF THE ACCOUNTING OFFICER
for the year ended 31 March 2008 (continued)
11.1.1 Asset management within Defence has always been based on item management. This emphasis
is now changing to also include financial and full management of items. These changes are
being implemented within Defence to align the Department with the requirements of National
Treasury.
11.1.2 The Logistics Intervention and Repositioning Programme (LIRP) was established to address critical
issues within SANDF logistics which need intervention. The LIRP is intended to reposition
logistics and facilitate a quantum improvement to achieve efficient logistic support in the DOD
and set the basis for continuous improvement.
11.1.3 To this end, a LIRP Steering Committee was established with sixteen sub-workgroups. All
workgroups made good progress in the area of environmental analysis regulatory framework
analysis and strategy development. The philosophy development and business process analysis
has commenced.
11.1.4 A further investigation is under way into a DOD motor vehicle tracking and monitoring system
which will greatly assist in enhancing good asset management capabilities.
11.2 Progress with regard to capturing assets in the register
11.2.1 The majority of the Strategic Defence Packages items have been brought on charge. Items recently
received are now being brought on charge.
11.2.2 The asset register is systematically being updated to include the information not previously kept.
Feedback from Services and Divisions is given on a monthly basis.
11.2.3 In the endeavour to address the lack of a single, optimised integrated logistic management
information system for the DOD, the Logistic Division is part of the National Treasury initiative
of implementing the Integrated Financial Management System (IFMS) within the State. A
project structure and its responsibilities have been submitted for approval in order that a full-time
organisation is established to execute the planned migration to IFMS and to manage the DOD
unique Integrated Resource Management System (IRMS).
11.2.4 This entailed a complete study that was done to determine the feasibility of integrating the
DOD’s four major logistic accounting systems of Defence into one system, being the Operating
Support Information System (OSIS). It was also determined that it would be more cost effective
to run the Computerised Aided Logistical Management Information System (CALMIS) and
OSIS concurrently with each other until the above mentioned IFMS and DOD IRMS have
been completed. Defence has progressed well in computerising manual units. This will enable
integration of information as well as the accurate reporting in financial statements.