OVERVIEW OF THE OCJ ANNUAL REPORT FOR THE 2016/17 FINANCIAL YEAR PRESENTATION TO THE PORTFOLIO COMMITTEE ON JUSTICE AND CORRECTIONAL SERVICES 10 OCTOBER 2017

PRESENTATION OUTLINE Purpose of the presentation Organisational Overview Programme Performance Programme 1: Administration Programme 2: Judicial Support and Court Administration Programme 3: Judicial Education and Research Summary of financial performance AGSA Audit Scope AGSA findings – Audit of pre-determined objectives Status of the drivers of internal controls per AGSA OCJ Risk areas emanating from AGSA audit Improvement Plan Activity plan to conclude AR process Conclusion

PURPOSE OF THE PRESENTATION To provide an overview of the OCJ 2016/17 Annual Report; To highlight areas of challenge on the performance of the OCJ; and To highlight achievements on the performance of the OCJ.

ORGANISATIONAL OVERVIEW Overall Performance The Department achieved an unqualified audit opinion for the 2016/17 financial year. Performance of the OCJ improved during the year under review (2016/17) as compared to its performance during the previous (2015/16) financial year. In 2016/17 financial year, the OCJ had 20 planned indicators of which 17 were achieved translating to 85%; whereas in 2015/16 financial year, the OCJ had 35 planned indicators of which 26 were achieved translating to 74%.

ORGANISATIONAL OVERVIEW (cont.)

ORGANISATIONAL OVERVIEW (cont.) Key achievements for the 2016/17 financial year include the following: No Key achievements 1 90.2% of the planned 90% of funded vacant posts were filled. 2 OCJ obtained an unqualified audit outcome as planned. 3 91% of the planned 80% of audit findings (internal and external) were addressed. 4 86% of the planned 65% of compliance with quasi-judicial targets were achieved. 5 85% of the planned 65% default judgments were finalised by Registrars. 6 87% of the planned 65% taxations of legal costs were finalised. 7 90 judicial education courses were conducted, exceeding the planned target of 70 by 20.

PROGRAMME PERFORMANCE PROGRAMME 1: ADMINISTRATION

OVERVIEW OF PERFORMANCE: PROGRAMME 1 – ADMINISTRATION Programme 1: Administration had a total of 10 indicators, of which 8 where achieved translating to 80%. Performance per sub-programmes Management achieved 100% (1 of 1) of its targets. Corporate Services achieved 50% (1 of 2) of its targets. Finance Administration achieved 100% (3 of 3) of its targets. Internal Audit and Risk Management Services achieved 75% (3 of 4) of its targets.

PROGRAMME 1: ADMINISTRATION Sub-programme: Management Performance indicators Baseline 2015/16   Planned annual target 2016/17 Actual achievement 2016/17 Deviation from planned target to Actual Achievement for 2016/2017 Comments on deviations Performance Status 1. Annual Performance Plan compliant with the National Treasury prescripts tabled within prescribed timelines OCJ Annual Performance Plan (2016/17) finalised and submitted to DPME and NT as per NT timelines OCJ Annual Performance Plan (2017/18) tabled in Parliament as per National Treasury timelines OCJ Annual Performance Plan (2017/18) tabled in Parliament as per National Treasury timelines None

PROGRAMME 1: ADMINISTRATION cont. Sub-programme: Corporate Services Performance indicators Baseline 2015/16   Planned annual target 2016/17 Actual achievement 2016/17 Deviation from planned target to Actual Achievement for 2016/2017 Comments on deviations Performance Status 2. Percentage of funded vacant posts filled 64% 90% 90.2% (322 of 357) -0.2% Constant follow- up on posts advertised to ensure managers keep to prescribed timeframes 3. ICT Master Systems Plan developed and implemented over the MTEF ICT Master Systems Plan developed ICT Master Systems Plan implementation initiated (critical systems) ICT Master Systems Plan implementation partially initiated (ICT Infrastructure project completed and E-Filling System Project initiated) The service provider for the E-Filling System Project was not appointed. Some of the critical systems were not initiated as planned Insufficient funding

PROGRAMME 1: ADMINISTRATION cont. Sub-programme: Financial Administration Performance indicators Baseline 2015/16   Planned annual target 2016/17 Actual achievement 2016/17 Deviation from planned target to Actual Achievement for 2016/2017 Comments on deviations Performance Status 4. Unqualified audit outcome - Unqualified audit outcome Unqualified audit outcome achieved None 5. Number of compliant financial performance reports submitted within the prescribed timelines 12 6. Number of asset registers produced in line with the prescripts 2

PROGRAMME 1: ADMINISTRATION cont. Sub-programme: Internal Audit and Risk Management Performance indicators Baseline 2015/16   Planned annual target 2016/17 Actual achievement 2016/17 Deviation from planned target to Actual Achievement for 2016/2017 Comments on deviations Performance Status 7. Combined assurance plan developed and implemented - Combined assurance plan developed Combined Assurance Plan developed and piloted in 5 Courts None 8. Number of strategic and operational risk registers developed and updated 4 8 9. Percentage of audit findings (internal and external) addressed 80% 91% (115 of 126) -11% Concerted effort by the Department to address the audit findings. Strict monitoring through Operations Committee (OPSCO), EXCO and the ARC

PROGRAMME 1: ADMINISTRATION cont. Sub-programme: Internal Audit and Risk Management cont. Performance indicators Baseline 2015/16   Planned annual target 2016/17 Actual achievement 2016/17 Deviation from planned target to Actual Achievement for 2016/2017 Comments on deviations Performance Status 10. Percentage of reported fraud cases investigated 61% 100% 87% (26 of 30) 13% Forensic Unit capacity constraints and unavailability of the witnesses and suspects

PROGRAMME PERFORMANCE PROGRAMME 2: JUDICIAL SUPPORT AND COURT ADMINISTRATION

OVERVIEW OF PERFORMANCE: PROGRAMME 2 – JUDICIAL SUPPORT AND COURT ADMINISTRATION Programme 1: Judicial Support and Court Administration had a total of 7 indicators, of which 6 where achieved translating to 86%. Performance per sub-programmes Administration of Superior Courts achieved 83% (5 of 6) of its targets. Judicial Service Commission achieved 100% (1 of 1) of its targets.

PROGRAMME 2: JUDICIAL SUPPORT AND COURT ADMINISTRATION Sub-programme: Administration of Superior Courts Performance indicators Baseline 2015/16   Planned annual target 2016/17 Actual achievement 2016/17 Deviation from planned target to Actual Achievement for 2016/2017 Comments on deviations Performance Status 1. Percentage of compliance with quasi- judicial targets - 65% 86% (67 662 of 78 898) -21% Improved control measures were put in place to ensure that quasi-judicial functions are speedily dealt with 2. Number of Superior Courts performance monitoring reports produced 3 5 None 3. Percentage of default judgments finalised by Registrars 70% 85% (49 252 of 57 656) -20% Improved control measures were put in place to ensure that default judgments are speedily dealt with

PROGRAMME 2: JUDICIAL SUPPORT AND COURT ADMINISTRATION cont. Sub-programme: Administration of Superior Courts cont. Performance indicators Baseline 2015/16   Planned annual target 2016/17 Actual achievement 2016/17 Deviation from planned target to Actual Achievement for 2016/2017 Comments on deviations Performance Status 4. Percentage of taxations of legal costs finalised 84% 65% 87% (19 510 of 22 414) -22% Improved control measures were put in place to ensure that Taxations are speedily dealt with 5. Number of training workshops on case management conducted for Registrars, Statisticians and Clerks 3 4 None 6. Percentage of warrants of release delivered within one day of the release granted - 100% 88% (79 of 90) 12% Delayed transfer of files from the affected circuit courts to the main seat for issuing and processing.

PROGRAMME 2: JUDICIAL SUPPORT AND COURT ADMINISTRATION cont. Sub-programme: Judicial Service Commission Performance indicators Baseline 2015/16   Planned annual target 2016/17 Actual achievement 2016/17 Deviation from planned target to Actual Achievement for 2016/2017 Comments on deviations Performance Status 7. Number of reports on judicial appointments and complaints produced - 3 None

PROGRAMME PERFORMANCE PROGRAMME 3: JUDICIAL EDUCATION AND RESEARCH

OVERVIEW OF PERFORMANCE: PROGRAMME 3 – JUDICIAL EDUCATION AND RESEARCH Programme 1: Judicial Education and Research had a total of 3 indicators, of which all 3 where achieved translating to 100%. Performance per sub-programmes South African Judicial Education Institute achieved 100% (2 of 2) of its targets. Judicial Policy and Research achieved 100% (1 of 1) of its targets.

PROGRAMME 3: JUDICIAL EDUCATION AND RESEARCH Sub-programme: South African Judicial Education Institute Performance indicators Baseline 2015/16   Planned annual target 2016/17 Actual achievement 2016/17 Deviation from planned target to Actual Achievement for 2016/2017 Comments on deviations Performance Status 1. Number of judicial education courses conducted. 59 70 90 -20 Appointment of Judicial Educators and utilisation of guest facilitators 2. M&E Framework for judicial education and training developed and implemented - M&E Framework approved None

PROGRAMME 3: JUDICIAL EDUCATION AND RESEARCH cont. Sub-programme: Judicial Policy and Research Performance indicators Baseline 2015/16   Planned annual target 2016/17 Actual achievement 2016/17 Deviation from planned target to Actual Achievement for 2016/2017 Comments on deviations Performance Status 3. Percentage of legal advisory opinions on policy development and research services provided within 15 days of receipt - 80% 100% (19 of 19) -20% Systems and procedures in place functioned optimally to enable development of legal advisory opinions

SUMMARY OF FINANCIAL PERFORMANCE Programme 2016/17 2015/16 Final appropriation R’000 Actual expenditure   (Over)/ under-expenditure % Administration 142 181 139 079 3 102 2.18 97 787 88 831 8 956 9.16 Judicial Support and Court Administration 699 447 685 583 13 864 1.84 651 566 648 196 3 370 0.52 Judicial Education and Research 32 362 30 982 1 380 4.26 34 026 30 642 3 384 9.95 Total 873 990 855 644 18 346 2.10 783 379 767 674 15 705 2.00 Direct Charge 950 057 930 704 19 353 2.04 873 748 887 682 (14 303) (1.64) 1 824 047 1 786 348 37 699 2.07 1 657 127 1 655 356 1 771 0.11

AGSA AUDIT COVERAGE SCOPE Following are AGSA focus areas for the 2016/17 OCJ Annual Audit and it is presented herebelow with the 2015/16 comparative audit outcomes. No Audit Focus Areas Audit Outcomes 2015/16 Audit Outcomes 2016/17 1 Annual Financial Statements Material misstatements were identified No material misstatements were identified 2 Annual Performance Report Material findings identified on reported performance information's usefulness and reliability relating to the Programme 2 and 3 Material findings identified on reported quasi-judicial performance information’ reliability 3 Compliance with Legislation Material non-compliance with key legislation was identified No material non-compliance with key legislation was identified

AGSA FINDINGS – AUDIT OF PRE-DETERMINED OBJECTIVES Programme 1: Administration It was not part of the scope of the audit as a result it was not audited. Programme 2: Judicial Support and Court Administration Audit Outcome: Qualified Audit Opinion (The materiality of the findings were above 10% as per new audit methodology). The material findings in respect of the usefulness and reliability of the selected programme are as follows: The reported achievement for the following indicators was misstated as the evidence provided indicated a percentage that was different to the reported percentage: Percentage of default judgments finalised by Registrars; Percentage of taxations of legal costs finalised; and Percentage of warrants of release delivered within one day of the release granted. Programme 3: Judicial Education & Research No material findings on the usefulness and reliability of the reported performance information.

STATUS OF THE DRIVERS OF INTERNAL CONTROLS PER AGSA: 2015/16 AND 2016/17 TREND ANALYSIS

OCJ RISK AREAS EMANATING FROM AGSA AUDIT

IMPROVEMENT PLAN To ensure improvement of reported performance information, the OCJ has adopted a 7 point plan that will ensure: Improved control measures to ensure full alignment of Court Administration processes as well as the management of reported court performance information; Institutionalization of the new audit methodology at the Superior Courts; Continuous verification of performance information through Combined Assurance mechanisms; Extended audit reviews on reported performance information by Internal Audit Unit especially in Programme 2 and 3; and OCJ EXCO through the Audit Facilitation Committee will continue monitoring the implementation of corrective measures to address previous audit findings and will ensure continuous improvement of internal controls.

ACTIVITY PLAN TO CONCLUDE AR PROCESS Ser No ACTIVITY DATE RESPONSIBILITY 1 Presented to the Judicial Oversight Committee 25 August 2017 Secretary-General / OCJ EXCO 2 Submitted the final OCJ 2016/17 Annual Report to National Treasury and DPME 31 August 2017 Executive Authority / Secretary-General 3 Submitted the final OCJ 2016/17 Annual Report to the Ministry 31 August2017 4 Present 2016/17 Annual Report to the Ministry 22 September 2017 Secretary-General 5 Present the OCJ 2016/17 Annual Report to the Portfolio Committee in Justice and Correctional Services 10 October 2017

CONCLUSION The OCJ would like to thank Portfolio Committee for their continued oversight in ensuring that the Department continues to execute its mandate effectively.

THANK YOU