Briefing to the Portfolio Committee on Department of Correctional Services on the audit outcomes for the 2013/2014 financial year Presenter: Solly Jiyana 15 October 2014

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.

Purpose of presentation To provide members of parliament with the necessary information/guidance on the audit outcomes for the portfolio to enable the Portfolio Committee to effectively execute their oversight function One of our strategic objectives is to lead by example, which means that we strive to be a model organisation in terms of all our operations. We are also a member of the International Organisation of Supreme Audit Institutions (INTOSAI) whose motto is "Mutual experience benefits all". In support of this, we are committing to sharing technical information, guidance and good practice material that can be used by others, particularly those in public sector organisations.

Audit outcomes for the portfolio

Audit outcomes for the portfolio

Audit outcomes for the portfolio

Audit outcomes for the portfolio

Audit outcomes for the portfolio

Audit outcomes for the portfolio

Oversight model OVERSIGHT: Parliament, provincial legislature or municipal council Identify desired impacts Assess and adjust Specify performance indicators Monitor and take Set targets corrective action and allocate resources Policy development Strategic Planning Accountability INSTITUTION National department Provincial department Municipality Public entity Municipal entity Operational planning and budgeting AGSA advises the committee members on the Interim work done the Annual Performance Plan. Budgeting process including the Medium Term Budgeting Framework. Quarterly reporting done throughout during implementation on both performance and budget. End year reporting includes budget review processes to determine whether money spent is in line with Targets achieved. End-year reporting Implementation and in-year reporting

Oversight component - Portfolio committee mandate Role of Portfolio Committees (Rule 201) 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

Considerations for Portfolio Committees when dealing with performance monitoring Is the Strategic Plans and Annual Performance Plans for entities aligned to the National Development Plan Does the entity have adequate resources (human and financial) available to achieve predetermined objectives Are the targets realistic (can it be done) How are the entities ensuring that Strategic Plans and Annual Performance Plans will be achieved (performance contracts, quarterly monitoring, etc.) The Portfolio committee should review the quarterly progress of entities with regard to predetermined objectives and contributions to NDP The Portfolio committee should review annual achievement of predetermined objectives by entities (Annual Reports) The Portfolio committee should approve and track changes to strategic plans and annual performance reports

Support oversight – complimentary mandate Senior management Accounting officers/ authority Executive 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 Oversight assurance Second level of assurance Coordinating / Monitoring institutions Internal audit 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 Oversight (portfolio committees / councils) 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

How does clean administration improve service delivery Creating a better and dignified life for the citizens of South Africa through timely effective, efficient and economical SERVICE DELIVERY Robust financial performance management systems Oversight and accounta-bility of all Independent and relevant reporting by the AG Commitment and ethical behaviour Robust financial and performance management systems Transparent and stable reporting systems Budgeting and planning processes Focussed information management platforms Strong internal audit capabilities Oversight and accountability Reporting to enable effective oversight Applying consequences for transgressions and poor performance Commitment and ethical behaviour by all Visible commitment by all players in the public service Demonstrated impeccable ethical behaviour and professionalism Auditor General Independent and relevant reporting by the AG Value-adding input expressed by the AG

Accountability and remedies to address transgressions and poor performance A common reaction to the general reports relates to the questions posed by many, including key role players in government, about the need for accountability and consequences and how these can be enforced. Legislation provides the answer to this question as it clearly defines accountability and the remedies. Details are available on pages 44 to 65 of our booklet: In Brief: The Auditor-General of South Africa

Accountability and remedies to address transgressions and poor performance This AGSA booklet highlights the legislation that enables remedies to be applied where national and provincial departments are guilty of transgressions and poor performance. It addresses the following typical matters reported in the general reports: Failure to comply with legislated obligations and responsibilities Unauthorised, irregular and fruitless and wasteful expenditure Possible fraud and corruption Poor work performance – officials and suppliers Other non-compliance with legislation

Questions