DID ANNUAL REPORT 2022 23

Annual Report 2022-2023

Resolution No. Subject Details Response by the department Resolved (Yes/No) De part ment Yes

Yes

April May June July Aug Sept Oct Nov Dec Jan Feb March DID 86% 81% 88% 91% 84% 92% 85% 92% 89% 60% 86% 94% Client 60% 43% 58% 69% 82% 52% 83% 80% 93% 14% 34% 70% In January, DID achieved 60% due to December/January festive holidays as no payments run could be done during this period. Furthermore, Client Departments’ performance worsened to all time low at 14% this mainly attributable to cash received from DoH and subsequent payments made that were already outside of the 30-day period. 30 Days Payment Interventions • Reject all invoices that are submitted prior to signing of the GRV; • All invoices to be submitted via EIS system; • SOP for vote transactions has been finalised; • Distribute web cycle report (SAP) on a weekly basis to Head of Branches; • Business units to complete payment check list prior to signing GRV; ACTIVITIES TO COMPLY WITH THE REGULATIONS PLAN TO IMPROVE COMPLIANCE The Department will leverage on the work of probity auditors to improve compliance with prescripts. The probity auditors sit in both specifications and Bid Evaluation Committees to check compliance and issue report to BAC with a recommendation. All projects above R2 million are subjected to probity auditors process for compliance and quality check. A probity report is issued to be tabled at BAC. Improvement of review mechanism before award. All findings raised by probity auditors are resolved before projects are tabled before the BAC. Ensure that all emergency procurements are submitted to BAC before submission to the Accounting Officer for approval. All emergency procurement projects are tabled at BAC for Accounting Officers’ approval. The process started on 30 September 2021 with the following projects: Charlotte Maxeke propping project; and Charlotte Maxeke remedial work for fire. Development of Emergency Procurement Policy. The Policy has been approved by the Accounting Officer. The Department is currently finalizing SOPs and terms of reference for the Emergency Framework Panel.

Client Departments are invited for all projects above R2 million.

• Obtain monthly confirmation from Head of branches regarding list of outstanding invoices; • Finance will continue with Payment War Room to ensure we meet the 15-day target; • 30 days payment compliance forms part of the SMS performance contract and failure to comply will result in consequences management; • Automate all transactions though creation of purchase orders by SCM from 1 April 2022; • Request Provincial Treasury to ringfence budgets from Client Departments to allow DID to make payment to service providers directly; • Perform monthly reconciliation; • Regular engagement with the Client Department; and • Early warning system has also been launched to track movement of invoices within the Department. Ensure that there is a standing invitation for Client Departments to participate in the bidding process of Client Departments projects.

That the Department

provides the Committee

with a plan put in place to

provide adequate oversight over compliance with

SCM laws and regulations by 31 January 2022 and

thereafter its effectiveness every quarter continuing up until the end of June 2022.

8 Procurement

and Contract

Management

103

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT