1. 1 PRESENTATION TO THE PORTFOLIO COMMITTEE ON JUSTICE AND CONSTITUTIONAL DEVELOPMENT Presented by the Director-General 11 August 2010

2. 2 Overview of Presentation Overview of Corporate Services (CS) Highlights of Quarter 1 Performance of Corporate Services Audit outcomes Challenges Closure

3. 3 Support Service Mission: To provide support to the core prosecutorial function of the NPA through the delivery of governance and resourcing.

4. 4 Overview of CS Corporate Services consist of the following units: Enterprise Risk Management (ERM) Programme Management Office (PMO) Communications Human Resource Management and Development (HRM&D) Finance and Procurement (F&P) Security and Risk Management (S&RM) Information Management Service Centre (IMSC) Research Policy and Information (RP&I), and Library Services

5. Highlights of the CS annual plan (1) Reduction of the vacancy rate Leave audit and administration Skills development and capacitation of employees Management of EE and diversity programmes Management of employee relations and employee wellness 5

6. Highlights of CS annual plan (2) Public education and awareness Internal communication Provide security services Monitor Scopa resolutions Develop and implement audit action plan Establish and implement project governance structure Conduct asset verifications 6

7. Highlight of CS annual plan (3) Investigation of physical asset losses Provision of library services Fleet services Facilities management services Implementation of effective document management system Provision of IT services to facilitate business processes. 7

8. Q1 Performance: Vacancy rates Total Establishment = 5142 - vacancy rate= 16.75% Prosecutorial Establishment = 3396 - Vacancy rate= 15.13% Total of 216 appointment letters for prosecutors issued through Operation Recruitment Drive 8

9. Q1 Performance: Disciplinary matters No. of Disciplinary Matters = 23 No. of Grievances= 137 No. of Grievances finalised= 78 No. of External Disputes= 23 No. of External Disputes finalised= 2 Of the total Matters 3 suspensions and 1 Special leave Main charges are corruption and defeating ends of justice 9

10. NPA Overall Budget & Expenditure as at 31 st of July 2010

11. Business Unit Overall Budget & Exp as at 31 st of July 2010

12. 12 Corporate Services Budget & Exp as at 31 st of July 2010

13. 13 NPA audit outcomes 2007/08 audit outcome 2008/09 audit outcome 2009/10 audit outcome (preliminary) Action plan Challenges and way forward

14. 14 2007/08 audit outcome Disclaimer Irregular, fruitless and wasteful expenditure Tangible capital assets Leave entitlement Intangible assets Prepayments and advances Budget management Lease commitments Housing guarantees

15. 2008/09 audit outcome Qualified audit opinion Tangible assets – no register Intangible assets Employee benefits (leave) Prepayments and advances Finance lease expenditure Cash and cash equivalents Irregular expenditure 15

16. 2009/10 audit outcome (preliminary) Qualified audit opinion Tangible assets – register incomplete Employee benefits (leave) Prepayments and advances Fruitless and wasteful expenditure Irregular expenditure 16

17. 2009/10 audit outcome – Tangible assets Opening balances not supported by a complete, updated asset register No supporting documents for adjustments amounting to R128 million made to movable tangible assets – R1 valuation Asset transfer process to SAPS incomplete 17

18. 2009/10 audit outcome – Employee benefits Completeness and leave entitlement amounting to R67 million and capped leave commitment of R105 million 18

19. 2009/10 audit outcome – Irregular expenditure Irregular expenditure understated with an estimated R108 million (extrapolation) Uncertainty regarding nature of noted cases amounting to R17 million Implementation of cost-of-living adjustments for prosecutors – R78 million 19

20. 2009/10 audit outcome – Prepayments and Advances 2005/06 sale-and-leaseback transaction Not surrendered R19, 2 million to Treasury Forensic report completed after submission of financial statements 20

21. 2009/10 audit outcome – Fruitless and wasteful expenditure Qualitative finding Slow progress with investigations into fruitless and wasteful expenditure Little movement amounts disclosed (R2, 8 million and R1, 2 million) 21

22. 2009/10 audit outcome – Emphasis of matter Modified cash basis of accounting applied Restatement of corresponding figures 22

23. 2009/10 audit outcome – Report on other legal and regulatory requirements Reported indicators not complete when compared to source information (22% error rate) Not prepared an inventory of all (ex-DSO) assets and liabilities transferred to SAPS Internal audit function did not assist Accounting Officer Did not settle all payments due to creditors within 30 days of receipt of invoice Certain senior managers did not enter into performance agreements by 31 July 2009 Certain officials did not declare their financial interests 23

24. 2009/10 audit outcome – Internal control Management philosophy and operating style do not in all instances promote effective control over reporting Inadequate controls to ensure all leave transactions are accurately and complete Manual system to facilitate the preparation of the performance report Internal audit did not fulfil its responsibilities 24

25. Unresolved SCOPA resolutions Accountability status of the NPA Capacity and people related issues Asset management Housing guarantees Leave entitlement Non-compliance with PPPFA and SCM prescripts Investigation into Arms deal 25

26. Action plan Interacting with Treasury and Accountant-General A formal audit action plan is being prepared This plan will be managed as a project by the PMO Audit Committee sub-committee to monitor progress on continuous basis NPA audit action plan standing item on DoJ&CD EXCO agenda 26

27. Challenges and way forward Improve Audit outcomes Strengthen human capacity-fill key posts Improve collaboration and mutual support between the prosecution and administration Speed up disciplinary cases Resolve Budget Constraints 27

28. Closure Thanks! 28