1. Department of Police – Portfolio Committee Auditor General’s perspective 13 March 2012

2. 2 Reputation promise/mission The Auditor-General of South Africa has a constitutional mandate and, as the Supreme Audit Institution (SAI) of South Africa, it exists to strengthen our country’s democracy by enabling oversight, accountability and governance in the public sector through auditing, thereby building public confidence.

3. 3 TIMELINES

4. 44 Plan the audit Obtain financial statements Execute procedures on AFS and finalise audit Prepare management letter Execute the audit Audit at national level Regional assignments Audit of predetermined objectives Supply chain management Human resources Other components (G&S, other) Provide draft audit report Provide final audit report Aug - Nov 31 May June - July 30 June 15 July 31 July Nov - June Ending: 31 May Feb - March

5. 55 Police station / Units selected (25)– audit plan Station / UnitProvince ForensicForensic (Pretoria) GarankuwaGauteng Province Phokeng (Rustenburg)North West Province Thohoyandou (Tzaneen)Limpopo Province WorcesterWestern Cape Province ErmeloMpumalanga Province UpingtonNorthern Cape Province Thabong (Welkom)Free State Province PhoenixKwaZulu-Natal Province KraaifonteinWestern Cape Province Nelspruit GarageMpumalanga Province Mitchells Plain LCRSCriminal Record Centre

6. 66 Police station / Units selected – audit plan Station UnitProvince Eastern Cape Province Pretoria CentralGauteng Province Durban CentralKwaZulu-Natal Province East LondonEastern Cape Province KwaZulu-Natal Province National Intervention Unit (Pretoria) Head Office Division Pretoria Basic Training Provis.Training National DPCI Directorate for Priority Crime Investigation Surprise visits (commencing on the 5 March) Elsies RivierWestern Cape Province Surprise visitMpumalanga Province Surprise visitGauteng Province Surprise visitFree State Province Surprise visitEastern Cape

7. 7 KEY FOCUS AREAS

8. 8 LEASES

9. 9 Leases: DPW don’t pay their accounts. The challenge for SAPS – Landlords does not allow SAPS officials to have access to some of the buildings

10. 10 AUDIT OF SUPPLY CHAIN MANAGEMENT

11. 11 Background on SCM SAMPLE FOLLOW-UP OF PREVIOUS REPORTS RANDOMTRANSVERSALCAATs Possible fictitious suppliers Prohibited suppliers Interest in suppliers Armscor, SITA, National Treasury Internal audit Previous years Media reports Performance reports Auditing 27 tenders (in process) Only 10 tenders awarded during 2011

12. 12 Request from the Minister Factual finding report will be submitted with regards to: Composition of the BAC committee Process followed for condoning of expenditure Brigadiers and Generals on the panel of the BAC

13. 13 Other matters of SCM Comparing the current year contract register 2011/12 with the Schedule of Procurement Plan - numerous planned tenders have not been advertised or they were either advertised and cancelled No construction contracts were awarded in the 2011/12 year. 40 SAPS official was identified who traded with the department without obtaining prior permission Rotation of suppliers is still a challenge SCM Policy is outdated and does not take into consideration compliance to the CIDB (Construction Industry Development Board Act)

14. 14 AUDIT OF PREDETERMINED OBJECTIVES

15. 15 Audit criteria Main criteriaSub-criteria 1. Compliance with reporting requirements Existence Timeliness Presentation 2. UsefulnessMeasurability Relevance Consistency 3. ReliabilityValidity Accuracy Completeness

16. 16 GOING FORWARD Auditing the Annual Performance Plan of 2011/2012

17. 17 Annual Performance plan 2011/2012

18. 18 – Understanding and testing of the internal policies, procedures and controls related to the management of performance information. – Understanding and testing of systems and controls relevant to collecting, monitoring and reporting performance information. Understanding and testing of the internal policies, procedures and controls related to the management of performance information. Understanding and testing of systems and controls relevant to collecting, monitoring and reporting performance information. Audit Approach

19. 19 Existence of performance information Consistency of performance information between: Strategic/annual performance plan, quarterly reports and annual performance report Presentation in annual report Reliability of reported performance information Audit and compare reported performance information to relevant source documentation and conduct procedures to ensure validity, accuracy and completeness of reported performance information STRATEGIC MANAGEMENT ANNUAL REPORT DIVISIONS COMBINE INFORMATION, SUBMIT PROVINCIAL VERIFY, COMBINE, SUBMIT CLUSTER LEVEL VERIFY, COMBINE, SUBMIT STATIONS/UNITS SUPPORTING DOCUMENTATION

20. 20 Current year performance indicators 2020 Indicator: reduces the number of serious crimes, contact crimes and trio crimes Indicator: Increase the number of recoveries as a result of policing by focusing on: stolen and lost firearms, robbed vehicles, illicit drugs and liquor Indicator: Reduce the number of escape incidents from police custody Indicator: Increase the recovery of state owned firearms Indicator: New Applications for firearm licenses, processed (90 days) CASE DOCKETS FROM CAS OPERATIONAL PLAN & SUCCESS REPORT SAPS 13 REGISTER NOTIFICATION FORM SAPS 521(f) 86 Register / FRS FRS CAS OPAM FRS Circulation CAS VI SI BL E P O LI CI N G

21. 21 Current year performance indicators 2121 Indicator: Detection rate for contact crime, crime against woman and children Indicator: Percentage of court ready case dockets for contact crime, crime against woman and children Indicator: Detection rate for serious commercial crime- related charges CASE DOCKETS SAPS 3M CASE DOCKETS & CAS REGISTERED ON CASE CONTROL REGISTER CAS DETE CTIV E SER VICE S

22. 22 Challenges from last year: Logistics of the Department – supporting documents might not be available at station level due to documents being at for example courts / inspections. The difficulty of obtaining supporting documents / information (included but are not limited to: Case dockets, Occurrence book, SAPS 13 register, 184 register, approved plans, )

23. 23 Challenges for the current year: Completeness of CAS – how does a station commander know that all cases that needs to be registered are registered (OB, IR reports, IB) Incomplete documenting of IR (no audit trail). No link between IR and CAS number. Drugs on OPAM – measurement / type / inconsistencies Firearm licenses – system does not support the target – date are typed in on the system FRS – no internal controls at some police stations

24. 24 STRATEGIC MANAGEMENT ANNUAL REPORT DEVISIONS COMBINE INFORMATION, SUBMIT PROVINCIAL VERIFY, COMBINE, SUBMIT STATIONS / UNIT SUPPORTING DOCUMENTATION Going forward

25. 25 DISCUSSION AND QUESTIONS

26. 26 Auditing to build public confidence