1. Legal Aid Briefing : Parliamentary Portfolio Committee – Justice & Constitutional Development 14 April 2010

2. Legal Aid South Africa Budget 2010/11

3. Increasing Access to Justice – Finance & Sustainability LEGAL AID SOUTH AFRICA GOVERNMENT GRANT ALLOCATIONS YearNew FundingCase BacklogTotal Government Grant 2007/08R 50,000,000-R 613,027,000 2008/09R 55,000,000R 24,600,000R 869,551,083 2009/10R 60,000,000R 20,000,000R 918,243,959 2010/11R 40,000,000R 25,000,000R 1,045,781,429 New Funding and Case Backlog funding are included in the government grant 2008/09 onwards, includes OSD Funding Phase 1

4. Increasing Access to Justice – Finance & Sustainability DESCRIPTIONBUDGET 2010/11 MTEF 2011/12 MTEF 2012/13 Salaries and related costs R740,172,412R769,276,762R785,901,930 Case backlogR25,000,000R30,000,000R32,000,000 Direct expenditure R90,748,969R81,081,578R116,919,146 Operating expenditure R207,578,735R206,577,234R214,840,323 Capital expenditure R20,196,124R25,843,103R25,809,370 Total BudgetR1,083,696,240R1,112,778,677R1,175,470,769 LEGAL AID SOUTH AFRICA SUMMARISED MTEF 2010-13

5. Balanced Scorecard Budget 2010/11 Component of Balanced Scorecard Operating 2010/11 Capital 2010/11 Total 2010/11 Client & Community & Stakeholder and Shareholder R117,310,688-- Finance and SustainabilityR11,884,390-- Business Process (internal)R2,348,365-- Employee and Organisational capacity R872,654,953R32,227,674- Additional ProgrammesR47,270,170-- Total BudgetR1,051,468,566R32,337,674R1,083,696,240 BUDGET 2010-11

6. Increasing Access to Justice – Finance & Sustainability DescriptionBudget 2010/11 Budget 2009/10 Percentage Salaries and related costsR740,172,412R620,455,398 19% Case backlogR25,000,000R20,000,000 25% Direct expenditureR90,748,969R102,415,823 -11% Operating expenditure207,578,735R189,717,513 9% Capital expenditureR20,196,124R27,057,813 -25% Total BudgetR1,083,696,240R959,646,547 13% BUDGET 2010-11

7. Increasing Access to Justice – Finance & Sustainability 70% of the budget relates to salaries as legal services are delivered by in house legal practitioners (70% of our staff are lawyers) Direct expenditure constitutes 8% of the budget, this includes Judicare and Co operation Agreements amounting to R74 million and R7million respectively Operating costs amount to 20% of the budget and includes these material expenditure items: Office rental, municipal services, printing and Stationery, telephone and fax, travel and subsistence, vehicle fuel and wide area network. 2% of the budget relates to capital expenditure BUDGET 2010 /11

8. Increasing Access to Justice – Finance & Sustainability Salaries increased by 19% compared to 2009/11 as it includes inflation adjustment of 6% PPI averaged at 2,75% and recruitment rate of 3%. The salaries budget also includes R30 million projected funding for OSD phase 2. Other direct expenditure reduced by 11% which has been allocated to respective operating line items. The reduction in capital expenditure of 25% is due to once off funding for National Footprint funding which was included in 2009/10 budget. The overall increase in the budget of 13% is due to the following: Baseline increase of 5,9% OSD funding for Phase 2 accounting for 2,8% Additional funds from previous allocation letters accounting for 3,9% BUDGET 2010 /11 – REASONS FOR MAJOR VARIANCES

9. Increasing Access to Justice – Finance & Sustainability The government grant macro increase is 5,9% while salaries increase by an average of 10% Contracts escalations are on average 12% which is higher than the macro increase of 5,9% This consumes the operating budget resulting in negative growth of the overall budget Inadequate funding to implement new legislation eg. Child Justice Act OSD Phase 1 funding shortfall of R23,8 million for 2010/11 not allocated OSD Phase 2 funding for 2010/11 and future years not confirmed FINANCE AND SUSTAINABILITY CHALLENGES

10. Increasing Access to Justice – Finance & Sustainability Spent more than 99,5% of the budget This has been the trend for the past six years Unaudited figures indicate that 99,6% of budget has been spent for 2009/10 financial year FINANCIAL PERFORMANCE 2009/10– EXPENDITURE LEVELS

11. Increasing Access to Justice – Finance & Sustainability Unqualified audit report eight years in succession Unqualified audit report with no matters of emphasis four years in succession All auditor general’s recommendations are implemented within the agreed timeframes AUDITOR GENERAL’S REPORT AND AUDIT RECORD

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