1. Briefing to the Portfolio Committee on the Department of Home Affairs (DHA) APP 2015/16 Presenter : Naveen Mooloo – Senior Manager AGSA 11 March 2015

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 Identify desired impacts Assess and adjust Specify performance indicators Monitor and take Set targets corrective action and allocate resources End-year reporting Strategic Planning Implementation and in-year reporting Operational planning and budgeting Policy development INSTITUTION National department Provincial department Municipality Public entity Municipal entity INSTITUTION National department Provincial department Municipality Public entity Municipal entity OVERSIGHT: Parliament, provincial legislature or municipal council OVERSIGHT: Parliament, provincial legislature or municipal council Oversight model Accountability

4. 4 consider, amend, approve or reject legislation (bills in its portfolio) 1. Legislation consider and approve budgets and monitor expenditure of the Departments and entities reporting to them 2. Budgets consider progress reports (monitoring) from line-function departments, and provincial and local government authorities and entities on their respective mandates 3. Mandates ensure that all appropriate executive organs of state in its portfolio are held accountable for their actions (oversight); and 4. Accountability conduct oversight over the executive authority and consult/liaise with any other executive organ of state and make recommendations 5. Oversight Role of Portfolio Committees (Rule 201) Oversight component - Portfolio committee mandate

5. Considerations for Portfolio Committees when dealing with performance monitoring APP aligns with NDP Adequate resources (human and financial) available to achieve APPs? Are the targets realistic ? S M A R T Ask ‘how’ the entities will achieve the APPs e.g. Performance contracts/ monitoring Portfolio Committee should review quarterly progress against the APP targets Portfolio Committee should review the annual achievement against APP targets Portfolio Committee should track any changes to the APP

6. Senior management Senior management Accounting officers/ authority Accounting officers/ authority Executive authority Executive authority Required assurance levels Extensive Management’s assurance role Senior management – take immediate action to address specific recommendations and adhere to financial management and internal control systems Accounting officers/ authority – hold officials accountable on implementation of internal controls and report progress quarterly and annually Executive authority – monitor the progress of performance and enforce accountability and consequences Management assurance First level of assurance Management assurance First level of assurance Senior management Senior management Accounting officers/ authority Accounting officers/ authority Support oversight – complimentary mandate Oversight assurance Second level of assurance Oversight assurance Second level of assurance Coordinating / Monitoring institutions Coordinating / Monitoring institutions Internal audit Internal audit Audit committee Audit committee Extensive Required assurance levels Oversight’s assurance role National Treasury/ DPSA – monitor compliance with laws and regulations and enforce appropriate action Internal audit – follow up on management’s actions to address specific recommendations and conduct own audits on the key focus areas in the internal control environment and report on quarterly progress Audit committee – monitor risks and the implementation of commitments on corrective action made by management as well as quarterly progress on the action plans Independent assurance Third level of assurance Independent assurance Third level of assurance Oversight (portfolio committees / councils) Oversight (portfolio committees / councils) Public accounts committee Public accounts committee National Assembly Extensive Required assurance levels Role of independent assurance Oversight (portfolio committees) – review and monitor quarterly progress on the implementation of action plans to address deficiencies Public accounts committee – exercise specific oversight on a regular basis on any report which it may deem necessary National Assembly – provide independent oversight on the reliability, accuracy and credibility of National and provincial government

7. Understanding and monitoring of the accounting officer’s mandate are key to improving internal control environment Role of accounting officer Robust financial and performance management systems Effective, efficient and transparent systems for financial and risk management internal controls (under control of audit committee) procurement and evaluation Effective, efficient, economical and transparent use of resources Prevention of unauthorised, irregular and fruitless and wasteful expenditure and, if discovered, reporting to treasury Efficient and economic management of available working capital Oversight and accountability Manage and safeguard assets and liabilities Take appropriate disciplinary steps against any official contravening the PFMA Commitment and ethical behaviour Chapter 5 of the Public Finance Management Act, 1999 The role of the accounting officer is critical to ensure: timely, credible information + accountability + transparency + service delivery

8. Robust financial and performance management systems Oversight and accountability Commitment and ethical behaviour by all Competent and value-adding Auditor General Transparent and stable reporting systems Budgeting and planning processes Focussed information management platforms Strong internal audit capabilities Reporting to enable effective oversight Applying consequences for transgressions and poor performance Visible commitment by all players in the public service Demonstrated impeccable ethical behaviour and professionalism Independent and relevant reporting by the AG Value-adding input expressed by the AG Professionalism Creating a better and dignified life for the citizens of South Africa through timely effective, efficient and economical SERVICE DELIVERY AGSA’S aspirations for the Public Service 8

9. AGSA Review of DHA 2015/16 APP UsefulnessReliability Impact orientated APP aligned to regulatory requirements

10. AGSA Review of DHA 2015/16 APP UsefulnessPresentationFMPPIConsistency APP objectives, KPI’s & targets = Strategic plan objectives, KPI’s & targets Key performance indicator Specific, measurable, achievable, relevant, time bound (SMART) TargetSMART

11. Reliability of reported performance information ValidAccurateComplete AGSA Review of DHA 2015/16 APP

12. AGSA Review of DHA 2015/16 APP - SCOPE Understanding the environment (DHA policies, procedures and internal controls) Evaluating and testing the processes, systems and controls documentation maintained that support the generation, collation, aggregation, monitoring and reporting of the performance indicators and targets. Evaluating, testing and confirming the usefulness of planned and reported performance information in accordance with the identified performance management and reporting framework.

13. Audit findings history DESCRIPTION10-1111-12 12-1313-14 Audit report findings for PDO Department of Home Affairs (DHA) Areas reported in audit report  Citizen Affairs -Usefulness XXX -Reliability XXX  Immigration services -Usefulness XXX -Reliability XXX No findings on PDO Compliance findings on PDO reported in audit report Significant findings (including compliance) on PDO reported in audit report AUDIT OPINION INDEX

14. Review of DHA 2015/16 APP % Budget allocated per programme (R6.45 bn) Administration 24% Citizen Affairs 65% Immigration Services 11%

15. Audit findings 2015/16 APP 15 Immigration services Indicators not well defined (25%) Indicators not measurable (25%) Indicators not verifiable (17%) Usefulness

16. Audit findings 2015/16 APP 16 The Framework for Strategic Plans and Annual Performance Plans states: For each indicator, complete a technical indicator definition, which should be posted on the institution’s website along with the Annual Performance Plan.

17. Audit findings 2015/16 APP 17 No technical indicator definitions Number of bilateral engagements with identified countries on asylum seeker and refugee management Bilateral engagement with Mozambique, Namibia and Tanzania conducted Promulgation of BMA legislation (2015/16) Launch of BMA (2016/17) BMA in operation as per guiding policies and documents (2016/17) BMA legislation promulgated Approval of over-arching strategy (2015/16) Phased implementation of over- arching and sub-strategies (2016/17 and 2017/18) Over-arching strategy developed and approved by DHA (Minister) Number of strategic high risk ports of entry (POE’s) to whom Port Control strategy has been rolled out (2015/16) Rollout of Port Control strategy at 5 strategic high risk POE’s. (KPI sheet to indicate names of ports)

18. Other key matters Performance Lack of supporting information Procurement Expiration of key contracts and the impact on deviations Prior year audit findings Foreign revenue related matters still to be addressed

19. Questions?