FY2006/07 to FY2008/09 - Department of Defence

chapter 1DEFENCE PROGRAMMESResourcesThe outputs of the DOD are executedthrough nine programmes: Defence Administration Force Employment Landward Defence Air Defence Maritime Defence Military Health Service Defence Intelligence Joint Support Special Defence AccountBUDGET ALLOCATIONForce Employment R1 410 145 2,1%The medium-term budget allocationwithin the framework ofDefence programmes includingobjectives and outputs. Allocationis viewed from three perspectivesie process, resources and investment.The funding changesbetween FY2005/6 and FY2006/7Processreflect strategic decisions impactingon the medium term.Figure 1.1 Resource/Process/Investment RelationshipThe medium-term allocationreflects general inflation adjustments of 4% to 6% in eachperspective. Further adjustments are as follows:The process perspective indicates that in order to preparedefence capabilities to support Government’s initiativesadditional resources are allocated toward themodernization of defence equipment; renewing defenceinformation and communication systems; further rejuvenatingthe human resources component; and investingin the maintenance and repair of defence infrastructureand facilities. This is also evident in the personneland information categories in the resource perspectiveand as consumption in the investment perspective.The process perspective indicates a fair decline in forcedevelopment resulting from the downturn in the annualfinancial commitments on the strategic defence procurementprojects. These procurements reached its financialpayment peak in the 2005/06 financial year, it has nowentered a declining trend towards the finalization in the2011/12 financial year. This trend is evident in theinvestment perspective and has an influence in themateriél of the resource perspective.Major emphasis will be placed on the support of theforces with substantial increases in resource allocationstowards the strategic imagery and electronic collectionMateriél R14 045 159 2,3%Information R808 961 15,3%Personnel R8 975 985 6,3%Force Preparation R5 931 831 5,5%Force Development R7 247 400 13,5%Force Support R9 060 729 14,3%InvestmentR7 725 65012,7%ConsumptionR16 104 4559,8%Investmentcapability and to the anti-retroviral rollout programmeevident in the process perspective, the investment perspective'sconsumption and the resource perspective'sinformation.Medium-term allocation adjustments per sub-programmeare identified and explained in Chapter 21 ofthe FY2006/07 Estimate of National Expenditure.RISK MANAGEMENT PLANAll amounts inR'000.Percentage (%)reflects fundingchange betweenFY 2006/7 andFY 2005/06.The DOD Risk Management Strategy, compiled by theCFO on behalf of the Sec Def in his capacity asAccounting Officer of the Department, is aimed at settingand formalising the Department's approach to riskmanagement, taking into account the MaterialityFramework and Fraud Prevention Plan that support thestrategy. The Strategy of the DOD as it relates to RiskManagement is as follows: Risk management forms an integral part of thetotal management process of the DOD and isthe responsibility of each official in the DOD. All pertinent risks are identified, prioritised,and action plans are subsequently developedto mitigate or minimize the materiality of theserisks to an acceptable level, in line with theS T R A T E G I C B U S I N E S S P L A N F Y 2 0 0 6 / 0 7 T O 2 0 0 8 / 0 97