SUPPLY CHAIN PROCESS AUDIT CONVENTION2018. The. 4th Annual Edition

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1 The SEPTEMBER, 2018,, KZN Rethinking Innovative Ways to Curb Non-Compliance in SCM GAUTENG EASTERN CAPE WESTERN CAPE MPUMALANGA FREE STATE LIMPOPO KWAZULU-NATAL NORTHERN CAPE NORTH WEST DEALING WITH IRRREGULAR EXPENDITURE ADDRESSING CONTINUED WEAKNESSES IN SCM PRESCRIBED PROCUREMENT PROCESSES CURBING CORRUPTION AND MALPRACTICES an event from Booking Hotline : Register Now Send Registration Form to registrations@audit-roundtable.com

2 10 reasons to attend Who Should Attend? Finance Forensic & Internal Audit IT Supply Chain Management Chiefs, Heads of, Officers and those leading Risk Management Procurement Contract Management Performance Management The coming together of all stakeholders to create stronger networks, develop strategies and models focused on building momentum and growth within the Public Sector Learn how to meet capacity ahead of demand to maximise efficiency within your enterprize or department Discover how to maximize career and organisational development programmes You ll get tools to address your competency shortages from top employers and most successful organisations The agenda is engineered around your most pressing issues in Supply Chain management Network among your most innovative and inventive peers Exchange ideas, tips and solutions for your talent challenges and build essential industry contacts. Join leading experts from public and private sector organisations from across South Africa seeking new ways to develop talent and make the most of human capital in Africa Meet first hand with people who manage and determine capacity development functions in organisations An opportunity for overall education for Public Sector Professionals Benchmarking your team against best practice Now in its 4th year, The National Public Sector Supply Chain Process Audit Convention is designed to assist public sector departments and governments to optimise their strategies in internal skills development practices. This conference aims to provide a platform for the public sector with a possible outcome of supporting government in strengthening public sector perfomances, enhancement of accountability and driving a strong ethos of public value and service delivery. It is about understanding what it takes to run proficient services in the public sector and maximizing performance of talent within the departments. Heads of public sector departments, talent management and those in leadership roles within governments will convene in this 2 day conference to discuss issues on suppy chain management, procurement, financial management, effective leadership, governance and fraud prevention.

3 Foreword The Chairperson of the Select Committee on Finance, Mr Charel De Beer, when he was addressing the Committee of the Chairpersons of the National Council of Provinces (NCOP) in Parliament in May 20-17, said, Non-compliance with supply chain management (SCM) regulations continues unabated. In efforts to fight non-compliance, Mr De Beer continued to say there should be packaged remedial action to curb non-compliance by all stakeholders. With supply chain issues increasingly in the spotlight in South Africa - from the education department s alleged oversupply of sanitary towels in schools, to the Estina Dairy Farm scandal, and former finance minister Malusi Gigaba s budget speech pledge to strengthen efforts to fight fraud, corruption and abuse of supply chain management systems across all spheres of government - ENGINEERING NEWS, 30TH MAY 2018 To curb non-compliance with SCM, Mr Makwetu (AGSA) recommended that those charged with governance and oversight become less tolerant of non-compliance. He said this will result in accountability, particularly if consequences are enforced against those who fail to comply with legislation. It will also strengthen the SCM control environment to appoint suitably skilled and qualified heads of SCM where vacancies exist, particularly where corrective or disciplinary action for misconduct is enforced. The AGSA Report findings showed that irregular expenditure had risen to R45.6bn. Supply chain management weakness remained one of the key culprits driving irregular expenditure, said the Auditor General. The major downfall the AG found was non-compliance with Supply Chain Management (SCM) procedures, which he described as still the albatross of government spending. He reported that there has been no improvement over the years. Supply chain management has deviated since day one. No quotes invited, competitive bidding not invited, preference point system not applied, tax affairs of those suppliers not carefully scrutinised, inadequate performance monitoring, as well as declarations of interest not being submitted. These are the common features you will see, he said. The 4th Edition of the National Public Sector Supply Chain Process Audit Convention 2018, will seek to rethink the default proceses that have left Public Sector in such a grevious state. Attending delegates will be able to reflect on the above and gain more in leading effective and efficient supply chain teams. Join above 200 delegates who have more to offer in the engine of public sector who will lead clean audits through adopting of clean governance. To lead a clean audit remains driven by the following key aspects ; Leadership; Financial and performance management; and Governance. I look forward to welcoming you at the Garden Court Marine Parade in Durban, KZN Talent Moyo Research Director Audit Roundtable

4 Overview Treasury will increase collaboration with all law enforcement agencies to strengthen efforts to fight fraud, corruption and abuse of SCM [supply chain management] systems across all spheres of government in order to restore the integrity of supply chain management, Gigaba said in his speech. In recent years, a large number of deviations from normal procurement processes has reduced the credibility of the supply-chain management system. Deviations can also result in anti-competitive practices that open the door to corruption, and which limit transformation by preventing small businesses from doing business with the state. In future, deviations will be allowed only in rare, well-justified cases. He said the Public Procurement Bill will be submitted to the Cabinet in March for gazetting and will be open for public comment. It will also aim to improve governance, achieve efficiencies and enhance transformation. The department is also making proposals to amend the Public Audit Act to counter a worrying trend of rising unauthorised, irregular, fruitless and wasteful expenditure. Last year irregular expenditure by municipalities increased over 50% to R16-billion. This year however, it increased 75% to R28.4-billion. As annual government audits show increases in irregular and wasteful expenditure, an alarming phenomenon has emerged known as contestation in which departments or their projects or entities that are at risk of a questionable audit outcome challenge and even clash with the teams from the office of the Auditor General, threatening litigation or even personal intimidation. Scopa Chairperson Themba Godi insists strong action must be taken to halt this. First Published by Notes From The House

5 on audit teams to change conclusions purely to avoid negative outcomes or disclosure of irregular expenditure. audit outcomes from government departments and public entities for the financial year had shown a decline in comparison to previous years and irregular spending in the public sector had increased significantly Contractors were overpaid or paid for services not rendered, Adequate project management processes were not in place to manage and monitor the construction schedule and expenditure on the projects... The major downfall the AG found was non-compliance with Supply Chain Management (SCM) procedures, (42%) of SOEs did not comply. In terms of overall irregular expenditure, the total for 2016/17 is at nearly R46- billion First Published by Notes From The House lynettentuli.wordpress.com The increase of irregular expenditure throughout government reflects how the mismanagement of finances, fraud and theft of public funds are not taken seriously in government. - Chairperson of Scopa, Themba Godi Unauthorized expenditure remained at R12.77 bn, same as last year 55% of the overspending is related to non cash items Fin24.com

6 Day 1 -Thursday, 06 December 2018 Day 1 - Thursday, 13 September 2018 REDEFINING TENDERING PROCEDURES AND PROCESSES TO ACHIEVE PROCUREMENT PERFECTION Selecting award criteria and responding to selection criteria Delivering value from Public Sector Outsourcing Sub contracting or Partnering Pre qualification and tender process BBBEE, BEE scorecards BETTER PROCUREMENT FOR 1 BETTER SERVICE Improving procurement skills and strong leadership to bring about change Improving procurement processes and improved management of contracts Ensuring that the relevant procurement skills are in place to deliver A strong partnership approach to improve commercial skills for complex government projects Delivering transparency in Public Sector contracts How can further CONFERENCE outsourcing TRACKS of services - CONCURRENT reduce costs? SESSIONS ENCOURAGING COMPLIANCE WITH SCM PROCESSES AND PROCEDURES: KEY NOTE ADDRESS SIGNIFICANT IMPROVEMENT IN TRANSPARENCY AND TRACEABILITY OF ALL TRANSACTIONS Effective for preventing fraud and corruption Providing Audit Trails SCM AUDITS PLAYING A KEY ROLE IN COMPLIANCE Eradicating Corruption Abuse of Section 36 Audit Committee Reporting REVIEW OF THE SOE PROCUREMENT PRACTICES, PROCESSES AND CONTRACTS Periodic sampling of contracts to test their adherence to SCM prescripts Ensuring value for money in contracts Submission and publishing of plans to ensure transparency in the acquisition process UNIFORMITY IN SCM PRACTICES AND PROCESSES BETWEEN ORGANS OF STATE IN ALL SPHERES OF GOVERNMENT IN ORDER TO PROMOTE ACCESSIBILITY OF SCM INFORMATION BY EMERGING ENTERPRISES EFFECTIVE AND EFFICIENT SUPPLY CHAIN MANAGEMENT SYSTEM TO ENABLE DEPARTMENTS TO DELIVER THE REQUIRED QUALITY AND QUANTITY OF GOODS AND SERVICES GAME CHANGING TRENDS IN SUPPLY CHAIN MANAGEMENT Customer service and customer relationship management MORNING TEA Ensuring collaborative relationships Having transformational agile SCM strategy Integration of logistics CONFERENCE and purchasing TRACKS - CONCURRENT SESSIONS 2 Forecasting demand management THE SCOPE OF SUPPLY CHAIN MANAGEMENT AUDITS The principles of a fair, equitable, transparent, competitive and cost-effective supply chain management process Focusing on contract management shortcomings such as wastage as well as fruitless and wasteful expenditure, which in turn have a direct impact on service delivery Determining whether it was an unintended error, negligence or done with the intention to work against the requirements of legislation ADDRESSING FAILURES RESULTING IN REGRESSION Addressing Non Compliance with MFMA/PFMA in particular SCM regulations The continued plague of material findings on compliance with supply chain management regulations, Unjustifiable deviations in terms of supply chain management regulation 36, The extension of contracts without the necessary approvals, and non-compliance with local content prescripts AUDIT ROUNDTABLE ** Agenda Subject to change. TACT Has the right to change speakers, edit agenda Tel or : Tel event +27 : +27 in 11 any cases of arising 1763emergencies. NETWORKING DRINKS Audit outcomes of national and provincial government

7 Day 2 - Friday, 14 September 2018 PROCUREMENT SKILLS AND LEADERSHIP What type of skills (what skill sets are critical: analytical, quality control, efficiency evaluation; ability to forge profitable relationships, RY 1 etc.) What type of leaders do we require to drive procurement or what makes great procurement boss? (forward looking, addressing future challenges before they become problems {nature the critical relationship}) Do we have a database of such people, where and who manages it? How are the skills accessed? CHALLENGES IN PROCUREMENT TRANSFORMATION: Promoting clean audits in Government Departments and Municipalities REVIEWING THE PPRA AS A GUIDELINE PROVIDER WHEN PROCURING: Discussing the establishment H of the procurement appeal tribunal with its powers Escalating transitional provisions relating to the office of the CPO ENCOURAGING COMPLIANCE WITH SCM PROCESSES AND PROCEDURES: KEY NOTE ADDRESS POLITICAL LEADERSHIP vs ADMINISTRATIVE LEADERSHIP IN SCM Taking decisive steps to enforce zero tolerance for deviations from SCM processes Implementing consequence management to deter the disregard of regulations Ensuring that competent people are employed in financial and SCM positions coupled with a comprehensive understanding of key policies, processes and procedures INSISTING ON A CULTURE OF ACCOUNTABILITY AND SOUND MANAGEMENT PRACTICES, WHILE CONTINUING TO FOCUS ON CLEAN ADMINISTRATION PROMOTING AWARENESS OF LEGISLATIVE REQUIREMENTS AND ENSURING THAT MANAGEMENT DEALS WITH COMPLIANCE IN A REGULAR AND STRUCTURED MANNER OVERHAULING SCM SYSTEMS: ENSURING A SIMPLIFIED AND A MODERNIZED SCM ENVIRONMENT IN GOVERNMENT IN RESPONSE TO SCM INITIATIVES Procurement reform: Following the SCM initiatives from the previous year Transforming government procurement to make it more cost-effective, Transparency and equity remains an area of significant importance. THE SCOPE OF SUPPLY CHAIN MANAGEMENT AUDITS ADDRESSING FAILURES RESULTING IN REGRESSION Register Now & Be Tension Free registrations@audit-roundtable.com Tel: ** Agenda Subject to change. TACT Has the right to change speakers, edit agenda or event in any cases of arising emergencies.

8 THE MUST-ATTEND EVENT FOR ALL PUBLIC SECTOR EMPLOY- EES AND LEADERSHIP ROLES Our delegates have said: Interesting insights,very informative conference Quality speakers and networking Brilliant event - all two days! 2 Day Conference Registration: R Excluding VAT Enjoy discounted rates for group bookings ( T &C S APPLY) WHO ATTENDS THE PUBLIC SECTOR CLEAN AUDIT INDABA? Municipalities, Provincial directors, Ministers- Premiers. Members of parliament. Thought leaders and decision makers. Public sector solution providers The shareowners (shareholders) or owners, The board and directors, The committees of the board, HR Directors and their subordinates HR managers, IT personnel, Buyers, Procurement Managers, Internal audit, and external auditing firms. Quality assurance managers, CEO s, CFO s, COO s, CPO s Decision makers and policy makers. All public enterprises and organisations, Government officials. Mayors, City Council leaders. Unions Solution providers to the public sector. Public sector organisations and all related organisations. Adjudicators and lawyers, and public sector law firms. TO REGISTER AS AN ATTENDEE, SPEAKER, SPONSOR OR SOLUTIONS PROVIDER CONTACT talent@audit-roundtable.com DO NT JUST HUNT FOR CLIENTS. LET THEM COME TO YOU. Visit the conference and find ideas, discover insipiration, connect with peers and new clients with our pre-arranged one on one meetings in the conference. Get the know-how to get a business of your own up and growing. Call us now for exhibition opportunities in the conference to qualify for prearranged meetings with your prospective clients. Be SEEN, BE HEARD EXHIBIT organisational development and meet top decision makers in this discipline. Our customised exhibition and sponsorship packages are designed to give your brand targeted exposure and increase your client base with speaking and networking opportunities. Be seen and be heard by sponsoring or exhibiting in this conference expecting leading executives from all over South Africa keen to hear about your product or service offerings. >> talent@audit-roundtable.com NETWORK WITH 200+ PARTICIPANTS FROM ALL PROVINCES LISTEN TO 20+ SPEAKERS FROM THE PUBLIC SECTOR LEADERSHIP VIEW AND BE IN CONTACT WITH 10+ EXHIBITORS AND SOLUTION PROVIDERS