Building a caring correctional system that truly belongs to all

Management Response to Portfolio Committee Report: DCS Annual Report, 2005/06 22 MAY 2007 Cape town Building a caring correctional system that truly belongs to all

Progress on Action Plan on Audit Qualifications and other Compliance Matters Current State of Expenditure Formulation of targets in Strategic Plan Project Performance Vetting of officials Management of HIV/AIDS Construction of new correctional centres CONTENTS

Public Private Partnerships (APOPS) Discussions have been held with NT Consulted with other national and provincial departments that have similar arrangements Specimen Annual Financial Statements document has reviewed disclosure ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER

Receivables Members have been identified who will deal with debts PERSAL function given to the said members Judge White Cases Project 98% of the cases in the master list can now be linked to a specific debtor ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Receivables (Cont…) Incorrect capital amounts on BAS rectified for 3 out of 5 regions as at 25 April 2007 ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Asset Management A project to verify all assets in the Department commenced in November 2006 The process involved identifying each asset and ascertaining if it is marked/bar coded and accounted for in the asset register or not and if it is not it is marked and captured on the register ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Asset Management (Cont) All 80% of centres have done the verification and are currently reconciling their findings before they can be forwarded to the accounting officer The project will be concluded in June 2007 ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Asset Management (Cont) The D-G of National Treasury has granted approval to the Department to migrate to LOGIS which is a supply chain system that encompasses all the functions provided by the different systems currently utilized by the department. An implementation kick-off meeting between the department and LOGIS implementation team National Treasury took place on 11 May 2007 ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Asset Management (Cont) It is envisaged that the first sites will migrate to LOGIS in November 2007 and the whole department by 31 March 2008 ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Medical Expenditure Out of 8 469 continuation members 7 622 (90%) of life certificates were received 85 (1%) members could not be located through the mail 762 (9%) outstanding certificates – currently traced through MEDCOR GEPF database system to be deployed to DCS – to go on live wef 15 June 2007 ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Housing loan guarantees 1 236 old state guarantees were cancelled on PERSAL 112 unused state guarantees were cancelled Electronic state guarantee register is now implemented and maintained 187 guarantees were cancelled where there were discrepancies wrt guarantee institutions and deduction institutions ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Internal Control BAS/PERSAL Interface - All BAS/PERSAL reconciliations have been done monthly up to April 2007 - Reconciliations are monitored fortnightly by Chief Directorate: Finance and monthly in Heads of Finance and SCM forum and ASC ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Internal Control (Cont…) BAS/PERSAL Interface (Cont…) - Reconciliations were submitted to A-G for auditing in February 2007 ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Internal Control (Cont…) Journals - All Financial Administration Procedure Manual chapters have been amended to give guidance on what specific journals should be raised - Financial Circular issued to guide members on attachments to journals ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Internal Control (Cont…) Losses - During the financial year 2006/07 a concerted effort to finalize long outstanding losses was made - As a result 1 090 cases were finalized as opposed to 120 in the financial year 2005/06 ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Internal Control (Cont…) Suspensions - Suspension register has been implemented and maintained - PERSAL is now updated with suspension information ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Internal Control (Cont…) Performance Agreements - For 2006/07 there were 167 sms; 3 members (2%) did not sign their performance agreements - 1 sms member was disciplined - 2 sms members submitted after cut off date ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Internal Control (Cont…) Performance Agreements (Cont…) - For 2007/08 the deadline for signing performance agreements was 04 April 2007 - The certification of compliance was due by 14 May 2007 and we are currently analysing the submissions ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Internal Control (Cont…) Budget - A financial circular was issued wrt to sensitising all managers to hold financial meetings - FAP chapter was amended to give proper guidance on the structure of financial meetings - Bi-annual certifications were introduced to monitor the process – ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Vacancies Out of 44 849 posts, 41 393 were filled as at 30 April 2007 As at 30 April the vacancy rate was 7.7% ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Pharmacies Computer system error has been rectified and tested in 2 sites (Pta and Leeuwkop) Rollout will be completed in June 2007 ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Vehicle Fleet Management A total of 142 transport officers who were not trained before, have been trained since April 2006 to date All transport offices will be computerized this financial year as less than 50% have computers ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Vehicle Fleet Management (Cont…) The DCS has also requested the Department of Transport (DoT) to allow it to participate in the Fleet Management PPP contract as part of addressing the problem. The DoT has already invited tenders to appoint a Transactional Advisor to conduct a feasibility study ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Accruals Had discussions with NT with regard to the enhancement of BAS Financial circular issued to sensitise all members to process payments within a period of 30 days from date of receipt of invoice ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Policies All 25 chapters of the Financial Administration Procedure (FAP) have been finalised and distributed. The last chapter was approved during April 2007 ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Accommodation National Overcrowding Task Team (NOTT) monitors progress on alleviating overcrowding in accordance with relevant sections of Criminal Procedure Act ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Accommodation (Cont…) Offenders are distributed /transferred to less overcrowded centres 16 894 sentences were converted to correctional supervision from January to 30 April 2007 950 ATDs placed under community corrections from January to 30 April 2007 ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Jali Commission 129 cases were identified 62 cases have been finalised ito disciplinary hearings 2 cases were referred to SAPS and Health Professions Council as they involved members from the aforementioned institutions 65 cases in progress – to be finalised by 30 November 2007 ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Information Systems Audit IT policy and procedures have been approved IT functions are now segregated and Comsec monitors the dept and exceptions are reported as and when they occur Better audit trail implemented ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

Information Systems Audit (Cont…) Physical access (biometric / access control cards) has been improved in 91% of computer rooms ACTION PLAN ON 2005/6 AUDIT QUALIFICATIONS AND EMPHASIS OF MATTER (Cont...)

The final overall expenditure of the Department as at 28 February 2007 was at 81.67% against an ideal of 91.67% The Capital Works cash flow received from DPW indicated an even distribution of expenditure. A substantial account was received during January 2007 but we are still awaiting the PACE documents for a projected payment of R155 million for January up to March 2007 Under spending in most of the Programmes is due to non-filling of vacant posts. The filled posts are at 40 504 against the target set for March which is 42 222 resulting in 1 718 unfilled vacancies as at the end of February 2007 CURRENT STATE OF EXPENDITURE AS AT 28 FEBRUARY 2007

The DPW indicated on 28 February 2007 that the outstanding invoices for Property Management (Leases and Municipal services) will be submitted before the end of the 2006/2007 Financial year. The low expenditure for the Programmes Care and Development is mainly due to a backlog in capturing Internal Charges. Unspent funds will be requested for roll-over to the 2007/2008 Financial year. CURRENT STATE OF EXPENDITURE AS AT 28 FEBRUARY 2007 (Cont…)

Improved alignment of planning processes Strategic Plan for 2007/08 to 2011/12 has been finalised and tabled with better target formulation IMPROVE FORMULATION OF TARGETS & DELIVERY ON CURRENT ONES

PROJECT PERFORMANCE

In process of setting up the Vetting Fieldwork Unit (VFU) within DCS (in conjunction with NIA) It is anticipated that the VFU will be functional wef October 2007 208 vetting forms have been processed from January to end of April 2007 and submitted to NIA VETTING OF OFFICIALS

HIV/AIDS and Syphilis prevalence survey results were received during March 2007 4 additional sites have been accredited – Kroonstad; Groenpunt; Kimberley; and Johannesburg Med C – bringing the total to 9 sites MANAGEMENT OF HIV / AIDS

From April to 11 May 2007 – 20 members were trained in Voluntary Counselling and Testing (VCT) 120 offenders trained as peer educators HIV/AIDS TRAINING

Construction for Kimberley New Correctional Centre (NCC) started on 14 November 2006 and completion will be November 2008 Polokwane NCC has been suspended due to delayed negotiations on land issue Leeuwkop NCC – viability study outstanding PROGRESS MADE IN CONSTRUCTION OF THE 8 CORRECTIONAL CENTRES

Klerksdorp; Nigel; Allandale; East London; and Port Shepstone NCCs – feasibility studies from Transaction Advisor were received during April 2007 PROGRESS MADE IN CONSTRUCTION OF THE 8 CORRECTIONAL CENTRES

Thank you Building a caring correctional system that truly belongs to all

Building a caring correctional system that truly belongs to all