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Legal Aid SA Briefing of Portfolio
Committee on Justice and Correctional
Services on 31 March 2017:
1. Annual Performance Plan 2017-18
and Budget 2017-18 2. Report on Performance as at
Quarter 3:2016/17
Legal Aid SA
Annual Performance Plan 2017-2018
Budget 2017-2018
31 March 2017
Briefing of Portfolio Committee on
Justice and Correctional Services
1. Introduction
2. Annual Performance Plan 2017-2018
3. Budget 2017-2018
4. Concluding Comments
Content
Legal Aid SA APP and Budget 2017-2018
2
1. Introduction
I. The 2016/17 financial year is the second year of delivery of the Strategic Plan 2015-2020
and performance for this financial year will be reported on in the Annual Report 2016/17.
II. The Annual Performance Plan 2017/18 will be the third year of the Strategic Plan 2015-20.
III. The APP presentation outlines the followingi. Programmes to action the Strategies
ii. Key Projects
iii. Targets relative to the base year of performance 2015/16
iv. Budget for individual strategies to show how the budget is apportioned
IV. Legal Aid SA will have a budget shortfall of R202 million in the MTEF period 2017-2020.
The 2017/18 APP will be implemented within financial challenges and a budget shortfall of
R45 million.
V. Financial sustainability has been reviewed by the Board, in consultation with management
and staff, to address the budget shortfall. The budget shortfall will be managed by focusing
on a cap on the compensation of employees and implementing cost-cutting efficiency
measures.
VI. It is anticipated that beyond these interventions it will still be necessary to cut staff posts
which will have a consequent negative effect on legal aid services.
VII. Thus all programmes in the Strategic Plan will be maintained at levels possible within the
financial constraints. The performance targets for 2017/18 financial year will be revised
accordingly.
Introduction
4
Snapshot of Performance
at Quarter 3 FY2016/17
Performance Indicator 2016/17
Target
2016/17
@ Q3
LEGAL AID DELIVERY
i. New Legal Aid Matters 385,705 321,560
a. Criminal Matters 278 314 (87%)
b. Civil Matters 43 246 (13%)
c. Impact Matters 10
ii. Total New Legal Aid Matters 321,570
iii. Finalised Matters 329 466
a. Criminal 288 702 (88%)
b. Civil 40 764 (12%)
iv. New legal aid advice matters 337,303 237,910
v. National Delivery Footprint 64 Justice Centres; 64 Satellite offices
13 High Court Units;13 Civil Units
Summary of performance as at Quarter 3: 2016-2017 (page 1)
6
Performance Indicator 2016/17
Target
2016/17
@ Q3
LEGAL AID DELIVERY
vi. Children – total matters 13,654
a. Children – new criminal
matters
8,728
b. Children – new civil matters 4,926
vii. Children awaiting trial in
custody (>1 month)
105
viii. Mixed Model Delivery Justice Centre 95%; Judicare 3%
Co-operation Partners 1%
Agency Agreements 1%
Summary of performance as at Quarter 3: 2016-2017 (page 2)
7
Performance Indicator 2016/17
Target
2016/17
@ Q3
FINANCIAL MANAGEMENT
ix. Budget R1 823 179 803 R1 823 179 803
x. % expenditure 98% 70%
xi. Auditor-General’s Report Unqualified To be audited in
May 2017
Summary of performance as at Quarter 3: 2016-2017 (page 3)
8
Performance Indicator 2016/17
Target
2016/17
@ Q3
PEOPLE DEVELOPMENT
xii. Number of staff 2 744
xiii. Number of Legal Staff
(incl paralegals)
2185 (80%)
xiv. Recruitment levels 96% 95.8%
xv. Best Employer accreditation Accredited 8th year
accredited
Summary of performance as at Quarter 3: 2016-2017(page 4)
9
2. Annual Performance
Plan: 2017/18
Strategies, Programmes and Targets (APP 2017/18)
2. APP 2017/18Client, Community, Stakeholder & Shareholder
P1 – Legal aid in criminal matters Strategy I Delivering quality client-focused legal aid, in criminal matters,
particularly for the poor and vulnerable groups
Programme P1 To deliver quality criminal legal services that are client focused, within
budget constraints
Project P1-1 Access to Criminal Legal Aid services
Outputs Legal Aid provided to qualifying accused persons
Base year performance
FY2015/16DC coverage: ≥ 88%; RC coverage: ≥ 97%;
HC Coverage: All Legal Aid Matters
Target previous
year 2016/17
DC coverage: ≥ 83%; RC coverage: ≥ 93%;
HC Coverage: All Legal Aid Matters
Target 2017/18 Same as FY 2016/17 with the proviso as per comment below
Budget/strategy
2017/18
R1,059,463,367
Comment Practitioner per court model employed in lower courts. Supply of
practitioners serving courts will directly link to demand per court room.
All court role players are made aware of the exact days per week when a
legal aid practitioner will be present at each court.
Limited relief capacity introduced will be terminated
12
2. APP 2017/18Client, Community, Stakeholder & Shareholder P2 – Legal aid in civil matters
Strategy II Delivering quality client-focused legal aid, including to poor
and vulnerable groups, in civil matters with a priority focus on
constitutional rights
Programme P2 Deliver quality civil legal aid services that are client-focused, with a
priority for constitutional rights within budget constraints
Project P2-1 Access to Civil Legal Aid Litigation services
Outputs Civil clients assisted within available capacity
Base year performance
FY 2015/16Total Civil Matters: 52,364
JC = 50,162; Judicare = 2,701; Co-op = 3,928
Target previous
year 2016/17
JC ≥ 90% of civil practitioner target calculated at 95% recruitment
Judicare: ≥4% of JC civil matters
Co-op: Based on budget allocation (based on cost per case being lower than
Judicare cost per case for civil matters – unless otherwise agreed)
Target 2017/18 Same as FY 2016/17
Budget/strategy
2017/18
R 126,467,254
Comment Due to limited civil capacity and practitioners exceeding new matter targets
by 15% we have had to implement a waiting period for assistance in non-
priority matters (1,156 – Q3 2016/17).
The reduction in the salaries budget may impact on the number of clients
given a waiting period.
13
2. APP 2017/18Client, Community, Stakeholder & Shareholder
P3 – Legal aid in advice matters
Strategy III Delivering quality client-focused legal advice services
Programme P3 To deliver (increase access) quality legal advice services that are client-
focused within budget constraints
Project P3-1 Legal Advice Services
Outputs General advice service provided at all offices
Base year
performance FY
2015/16
Total JC, SO & ATD Legal Advice Matters: 272,722;
Legal Aid Advice Line: 35,994
Target previous
year 2016/17
General advice service available at all Legal Aid SA offices
Growth in legal advice matters: 0% (subject to demand and available capacity)
Target 2017/18 General advice service available at all Legal Aid SA offices
Growth in legal advice matters: 0% (subject to demand and available capacity)
Budget/strategy
2017/18
R 50,687,996
Comment Clients are provided with first level advice at 128 offices and the
national toll-free advice line which assists them to address legal
problems that do not require litigation.
14
2. APP 2017/18
Client, Community, Stakeholder & Shareholder P4 – Impact Litigation
Strategy IV Delivering client-focused Impact legal aid services, delivering
access to justice for poor and vulnerable groups particularly in
social justice matters
Programme P4 To give content to the constitution through impact litigation – which is
able to address Constitutional rights and socio-economic rights and
develop jurisprudence on social justice matters
Project P4-1 Impact Litigation addressing social justice
Outputs Legal Representation provided in impact matters
Base year
performance FY
2015/16
Impact Matters Approved: 15
Impact Matters Handled: 52
Success rate: 93%
Target previous
year 2016/17
Impact matters as approved by the CCMC within budget
≥90% Success
Target 2017/18 Impact matters as approved by the CCMC within available budget
≥90% Success
Budget/strategy
2017/18
R 10,389,528
Comment The Impact Litigation programme gives content to the rights contained
in the constitution by means of class action and precedent setting
litigation.
15
2. APP 2017/18Client, Community, Stakeholder & Shareholder
P5 – Effective functioning of the justice systemStrategy V Contributing to the effective functioning of the justice and legal
sector to assist in building safer communities
Programme P5 To participate in, contribute to and influence structures aimed at
improving the functioning of courts and justice system
Project P5-1 Participate in National and Provincial, efficiency enhancement structures
Improving Case Turnaround times
Outputs Participation in National / Provincial efficiency enhancement structures
Base year
performance FY
2015/16
Represented at:
1 NEEC;16 Dev Committees; 25 PEEC‘sDC : 10% cases > 6 months; RC : 31% cases > 9 months; HC: 34% cases > 12 months.
Target previous
year 2016/17
Participation in efficiency enhancement structures, including NEEC,
PEECs, Dev Comm and local Case Flow Meetings, as per meeting
schedules DC: ≤ 15% cases > 6 months; RC: ≤ 25% cases > 9 months; HC: ≤ 30% cases > 12 months
Target 2017/18 Same as FY2016/17
Budget/strategy
2017/18
R3,510,536
Comment Appropriate levels of management are deployed to represent Legal Aid
SA at all meetings. Our managers are specifically required to ensure
effective participate aimed at improving the functioning of the Justice
System.16
2. APP 2017/18
Client, Community, Stakeholder & Shareholder
P6 – Accounting to the Executive Authority & Parliament
Strategy VI Accounting to the Department of Justice & Correctional
Services, and Parliament on delivery of mandate, governance
and sustainability
Programme P6 To account and provide assurance to the Department of Justice and
Correctional Services, and Parliament, on performance and governance
Project P6-1 Reporting and accountability to the Executive Authority
Outputs 4 quarterly performance reports and 1 Annual Report
Base year
performance FY
2015/16
4 quarterly performance reports at end March 2016;1 Annual Report
(2014/15) audited and submitted to Executive Authority and Parliament
2 Parliamentary Briefings
Target previous
year 2016/17
4 quarterly performance reports at end March 2017
1 Annual Report (2015/16) audited and submitted to Executive Authority
and Parliament, 2 Parliamentary Briefings
Target 2017/18 4 quarterly performance reports
1 Annual Report
Budget/strategy
2017/18
R317,404
Comment Performance reporting against the Strategic Plan 2015-2020 and APP
2016-17 submitted to the Executive Authority timeously
17
2. APP 2017/18Finance & Sustainability - P7 & 8 – Financial Sustainability
Strategy VII Increasing financial sustainability and managing the
reductions to the budget
Programme P7
P8
To improve financial planning (budgeting) including managing the
budget cuts to ensure a balanced budget
Ensure strong and best practice financial reporting to ensure unqualified
audit and optimum financial maturity
Project P7-1/8-1 Financial planning; Financial reporting
Outputs Approved balanced MTEF and Budget
Annual and mid year Financial Statements
Base year
performance FY
2015/16
MTEF 2016/17 - 2018/19 (as per government grant allocation) submitted
to National Treasury
Budget: R1,751,687,424; Expend: R1,728,523,001;
Percentage spent: 99,1%; Unqualified audit opinion and no matters of
emphasis.
Target previous
year 2016/17
Balanced budget (as per government grant allocation)
Financial reporting within a financial year compliant with relevant
standards and regulations resulting in optimum financial maturity
Target 2017/18 Same as FY2016/17
Budget2017/18 R10, 972, 789
Comment To ensure balanced budget & MTEF is submitted timeously to NT & DoJ
The AG’s report of 2015/16- Unqualified audit with no matters of emphasis
18
2. APP 2017/18Finance & Sustainability
P9 – Governance
Strategy VIII Maintaining and enhancing good governance
Programme P9 To ensure best governance practices (PFMA compliance, King IV guidelines
& other relevant statutory requirements)
Project P9-1 Compliance with statutory requirements
Outputs P9-1 Monthly statutory compliance reports and deadlines exception listings
Quarterly updated compliance provisions
Quarterly Compliance Reports
Six monthly updated Legislative Universe Reports
Base year
performance FY
2015/16
All material statutory requirements, including the Legal Aid SA Act and the
PFMA were complied with
Target previous
year 2016/17
100% Compliance with statutory requirements including Legal Aid SA Act
and PFMA
Target 2017/18 100% compliance with statutory requirements including Legal Aid SA Act
and PFMA
Budget/strategy
2017/18
R1,097,375
Comment Web page introduced to monitor compliance with statutory guidelines
19
2. APP 2017/18Finance & Sustainability
P10 – Combined Assurance
Strategy VIII Maintaining and enhancing good governance
Programme P10 Independent monitoring and oversight unit providing combined assurance
Project P10-1 Risk based Audit Coverage Plan
Outputs P10-1 One annual Audit Coverage Plan
One revised Mid-year Audit Coverage Plan
Audit reports issued as per the Audit Coverage Plan
Base year
performance FY
2015/16
The Audit Coverage Plan revised and approved by the Board.
150 audit projects completed in 2015/16.
99% achievement of Audit Coverage Plan
Target previous
year 2016/17
≥95% of Audit Coverage Plan delivered
Target 2017/18 ≥95% of Audit Coverage Plan delivered
Budget/
strategy 2017/18
R9,890,619
Comment An effective internal control system; Internal audit fully capacitated and
conform to IIA standards with Quality Assurance Improvement Programme
(QAIP) fully implemented
20
2. APP 2017/18Finance & Sustainability
P11 – Board
Strategy VIII Maintaining and enhancing good governance
Programme P11 An effective and strategic Board providing leadership and oversight of
delivery on performance
Project P11-1 An effective functional Board
Outputs P11-1 Board meetings as per schedule; Governance instruments approved by
Board
Base year
performance FY
2015/16
The Transitional Board, fully constituted as per the Legal Aid South Africa
Act (39 of 2014), was appointed on 1 March 2015. Its tenure terminated
on 29 February 2016. The Board of Legal Aid SA was fully functional
Target previous
year 2016/17
Properly constituted Transitional Board/ New Board (in terms of Legal Aid
SA Act, 2014) and Board committees skilled to function effectively
Target 2017/18 Properly constituted Board (in terms of the Legal Aid SA Act, 2014) and
Board committees skilled to function effectively
Budget/strategy
2017/18
R1,159,517
Comment Board strategic and effective in providing leadership and oversight of
delivery on performance
21
2. APP 2017/18Internal Business Processes (P12 – Regulatory Framework)
Strategy IX Maintaining a regulatory framework incorporating best practices aligned
to constitutional values
Programme P12 Ensure the implementation of the rewritten Legal Aid SA Act and the
gazetting/implementation of the Legal Aid Regulations (policy) and Legal Aid Manual
(procedures)
Project P12-1 Legal Aid SA Act (2014); Legal Aid Regulations (Policy); Legal Aid Manual (Procedures)
Outputs Take necessary steps to ensure that the new Legal Aid SA Act (2014), is implemented
and amended where required; Updating of Regulations and Manual as required
Base year performance
FY 2015/16
Legal Aid SA Act (Act 39 of 2014) gazetted in December 2014. Effective 1 March 2015
Legal Aid Guide 2014
Target previous year
2016/17
P12 -1
P12-2
P12-3
Legal Aid SA Act (2014) operationalised (final provisions - post transition);
Draft Legal Aid Regulations (policy) and Draft Legal Aid Manual (procedures)
approved by Board;
Submitted to Minister for approval and tabling in parliament for approval.
Target 2017/18 P12 -1
P12-2
P12-3
Amendments to Legal Aid SA Act (2014) drafted, if required, in cooperation with
DoJ&CD for consideration by Parliament;
Prepare amendments to Regulations for Board to recommend when required;
Prepare amendments to the Legal Aid Manual for approval by the Board and
submission to the Minister for Tabling in Parliament and simultaneous gazetting,
when required.
Budget/Strategy
2017/18
R 952,778
Comment The Legal Aid SA Act 39 of 2014 came into operation on 1 March 2015 and new Board
appointed with effect from 1 March 2016.
The Legal Aid Regulations and Manual were not finalised by 28 February 2017 and
the regulations/manual require urgent approval and gazetting.22
2. APP 2017/18Internal Business Processes
P13 – Financial Management SCM
Strategy X Sustain strong financial management, supply chain and asset
management practices
Programme P13 To maintain a strong supply chain management framework and practices
Project P13-1 Supply chain management
Outputs Quarterly reports on acquisition of goods/ services in excess of R0.5 mil
indicating compliance with PPPFA, PFMA and relevant NT regulations
Base year
performance FY
2015/16
Legal Aid SA was materially compliant with the PPPFA, PFMA and NT
Regulations when acquiring goods and services
Target previous
year 2016/17
100% compliance with PPPFA, PFMA and relevant NT regulations when
acquiring goods and services
Target 2017/18 100% compliance with PPPFA, PFMA and relevant NT regulations when
acquiring goods and services
Budget/
strategy 2017/18
R14, 711, 331
Comment Compliance with SCM polices to ensure minimal fruitless, wasteful and
irregular expenditure
23
2. APP 2017/18Employee & Organisational Capacity & Innovation & Learning P14 – Staffing
Strategy XI Consolidate and review the national footprint to ensure access
to legal aid services, especially in rural and remote areas
(including the use of technology and other low cost service
alternatives)
Programme P14 Appropriately staff all service delivery points
Project P14-1 Review and develop staffing plans to meet operational requirements for
Legal and Support positions
Outputs Staffing Plans ensure effective management of recruitment statistics at
≥95%.
Base year Perf
FY 2015/16
95.4%
Target 2016/17 Recruitment at ≥94% (because recruitment budgeted at 96% based on
available budget)
Target 2017/18 Recruitment ≥95%
Budget/strategy
2017/18
R440,844,057
Comment Recruitment levels reduced over MTEF period due to fiscal climate
Specified experience requirements in place for the recruitment of legal
practitioners to represent clients in DC and RC courts, as well as certain
categories of civil matters, to ensure improved quality of services to
clients.24
2. APP 2017/18Employee & Organisational Capacity & Innovation & Learning
P15 – National Footprint
Strategy XII Developing and expanding the quality and expertise for each
segment of the national footprint
Programme P15 To strengthen and improve organisational competences and expertise
required for delivery of quality outcomes
Project P15-1 Skills Development
Outputs ATP & ATR submitted to SASSETA in compliance with the Skills
Development Act
Base year
performance FY
2015/16
The WSP and ATR were submitted to SASSETA in April 2015. The 2015-
2016 training hour achievement against the annual target for levels 1-10
was recorded at 131% and at 237% for Manager level. The programme
output exceeded its target.
Target 2016/17 Submission of the WSP and ATR in compliance with the Skills
Development Act
Target 2017/18 Submission of the WSP and ATR in compliance with the Skills
Development Act
Budget/strategy
2017/18
R55,056,765
Comment Investment in training critical to improving quality and efficiency of
services. Learning culture critical to achieving excellence in each
segment.
25
2. APP 2017/18Employee & Organisational Capacity & Innovation & Learning
P15 – National Footprint
Strategy XII Developing and expanding the quality and expertise for each
segment of the national footprint
Programme P15 To strengthen and improve organisational competences and expertise
required for delivery of quality outcomes
Project P15-2 Employment Equity
Outputs Diverse workforce in line with annual targets to achieve employment
equity goals.
EE Plan and Reports
Base year
performance FY
2015/16
EE Audit (2015) completed and Employment Equity Plan (2010) reviewed
to develop EE Plan (2015)
Target 2016/17 EE Plan 2015 approved by Board and submitted to Department of Labour
EE Audit and EE Plan in 2020
Target 2017/18 Implementation of the approved EE Plan 2015
Budget/strategy
2017/18
Comment Implementation of the Employment Equity Plan 2015-2020 is critical to
support the achievement of Legal Aid SA’s diversity goals26
2. APP 2017/18Employee & Organisational Capacity & Innovation & Learning P16 – IT
Strategy XIII Building and maintaining an integrated and service-oriented
cutting-edge Information Technology system
Programme P16 Maintain a modern IT platform (incl. Hardware, software, middleware and
IT network infrastructure)
Project P16-
1,2,3
IT Network, Hardware, Software & Applications
Outputs Provide effective throughput of reliable data across accessible IT systems
Hardware available to support, maintain and sustain business needs
Updated, reliable and dependable IT software and applications responsive
to business needs.
Base year Perf
2015/16
IT Network in place; Hardware upgraded as per Capital Replacement Plan
2015/2016. Average systems availability for FY2015/2016 was at 98.6%.
Target 2016/17 Stable and reliable WAN VPN connected to all sites -available @95%
IT hardware capacity aligned to business needs and available @99%
IT software and applications fully integrated and available @99%
Target 2017/18 VPN connected to all sites and available 95% of the time
IT Hardware capacity aligned to business needs and available @99% time
IT software and applications fully integrated and available @99%
Budget/ 2017/18 R29,946,234
Comment Legal Aid Administration system is fully integrated with the established
Central Supplier Database to ensure compliance with National Treasury
instructions. 27
2. APP 2017/18Employee & Organisational Capacity & Innovation & Learning
P16 – ITStrategy XIII Building and maintaining an integrated and service-oriented
cutting-edge Information Technology system
Programme P16 Maintain a modern IT platform (incl. Hardware, software, middleware and
IT network infrastructure)
Project P16-4 Development of electronic Legal Aid Administration System (eLAA)
Outputs Development of electronic Legal Aid Administration System (eLAA)
intended to replace the current Legacy System (Ad-infinitum).
Base year
performance FY
The contract for the development of eLAA system was cancelled with the
service provider due to non performance.
Target 2016/17 Electronic Legal Aid Administration system (eLAA 2016) tender awarded to
new suitable service provider
Target 2017/18 Development of eLAA 2016 software application in line with new tender
timelines
Budget/
strategy 2017/18R18 million
Comment The development of eLAA has commenced during the FY 2016/17, the
project is currently 50% completed as at January 2017.
28
3. Budget 2017/2018
I. Introduction to Budget 2017/18
II. Government Grant Allocations
III. Summarised MTEF 2017-2020
IV. Analysis of Budget 2017/18
V. Explanation of Variances
VI. Key Assumptions in Budget Preparations
VII. Challenges with the 2017/18 Budget
VIII.Expenditure Trends over MTEF period 2017 – 2020
IX. Staff Trends over MTEF period 2017-2020
3. Budget 2017/18
30
i. National Treasury confirmed in the final allocation letter that Legal
Aid SA will not have a cut to the baseline funding for the 2017/18
financial year.
ii. However there was a budget shortfall of R45 million arising from the
difference between the macro increase and the higher cost of living
increase.
iii. The shortfall has been funded from the baseline allocation.
iv. The NT Budget guidelines continue to emphasis that entities must
reprioritise spending pressures within the budget allocation.
v. Cash flow to be managed effectively ensuring that service delivery
is not impacted negatively due to budget constraints.
3. Budget 2017/18
I. Introduction
31
THE MTEF 2017-18 INCLUDES THE FOLLOWING
LEGAL AID SOUTH
AFRICA REVISED
BASELINE
BASELINE
ADJUSTMENT
LEGAL AID SOUTH
AFRICA MTEF PER
ALLOCATION LETTER
% CHANGE -
GRANT
LEGAL AID SA FUNDING
FROM COMMITMENTS
LEGAL AID SOUTH
AFRICA REVISED MTEF
2015/16 1,584,805,000 Note 1 (61,819,000) 1,522,986,000 4.6% Note 2 61 819 000 1,584,805,000
2016/17 1,669,899,000 Note 1 (92,728,000) 1,577,171,000 3.4% Note 2 92 728 000 1,669,899,000
2017/18 1,754,394,000 1,754,394,000 10.1% Note 2 11 500 000 1,765,894,000
2018/19 1,856,149,000 1,856,149,000 5.5% 1,856,149,000
2019/20 1,960,093,344 1,960,093,344 5.3% 1,960,093,344
TOTAL 8,825,340,344 (154,547,000) 8,670,793,344 166 047 000 8,825,340,344
Note 1: The amounts are a reduction (budget cuts ) in the baseline allocation as confirmed by NT in the letter dated 3 October 2014 and allocation letter dated 28/11/2014
Note 2: The amounts are funded from Legal Aid SA funds set aside for commitments to cater for the reduction (budget cuts) in baseline allocation as per the allocation
letter dated 28/11/2014
3. Budget 2017/18
II. Government Grant Allocations
32
Budget
description
Budget
2016/17
(current year
MTEF Year 1
2017/18
(Budget)
MTEF Year 2
2018/19
MTEF Year 3
2019/20
Salaries and
related costs
1 363 307 503 1 425 386 204 1 515 013 208 1 603 158 593
Direct
expenditure
98 189 207 98 711 568 99 202 461 99 738 168
Operating
expenditure
239 824 006 246 907 733 255 636 345 264 759 023
Capital
expenditure
20 794 529 35 604 740 38 513 232 44 653 806
Total Budget 1 722 115 246 1 806 610 245 1 908 365 246 2 012 309 589
3. Budget 2017/18
III. Summarised MTEF 2017-2020
33
Budget
description
Budget 2016/17
(current year
MTEF Year 1
2017/18 (Budget)
Variance
Salaries and
related costs
1 363 307 503 1 444 864 547 6%
Direct
expenditure
101 187 684 95 568 712 -5.8%
Operating
expenditure
243 749 871 245 494 289 1%
Capital
expenditure
84 771 315 32 482 698 -62%
Total Budget 1 793 016 374 1 818 110 246 1.4%
3. Budget 2017/18
IV. Analysis of Budget
34
i. Salaries and related costs increased by 6% due to COLI and PPI. The recruitment
level budget was reviewed and will reduce from 96% to 95% to cater for the salary
budget shortfall.
ii. Other direct expenditure decreased by 5.8% due to the reduction in the judicare
budget by 7% to supplement the budget shortfall. There was also no increase in the
impact litigation budget. The judicare budget will be increased during the year from
savings raised within the budget.
iii. The overall operating budget increased only by 1% due to budget constraints. Only
operational expenditure line items with contractual obligations were increased. Non
contractual operating expenditure reduced by 11.7% as compared to 2016/17.
iv. The overall capital expenditure decreased by 62%. The decrease is due to once-off
rollover funding relating to projects and procurement of capital assets which includes
the eLAA project and building procurement. These funds are included in the 2016/17
budget and not included in the 2017/18 budget.
3. Budget 2017/18
V. Explanation of Variances
35
i. Legal Aid South Africa’s five (5) year Strategic Plan 2015-2020.
ii. The year on year increase of the National Treasury allocation
including additional funding over the MTEF period.
iii. Future financial sustainability of the organisation.
iv. The proportion of direct service delivery costs to administration
support costs.
v. The Capital Asset Replacement Programme.
vi. The National Treasury letter on Budget cuts.
vii. The liquidity ratios of Legal Aid South Africa.
3. Budget 2017/18
VI. Key assumptions in the preparation of the Budget 2017/18
36
i. Shortfall to the 2017/18 Budget is as a result of the COLI that is
higher than macro increase impacts the budget adversely resulting
in negative growth budget. The shortfall in the salaries budget is
3.6% (1.5% for PPI and COLI for 2.1%).
ii. As per NT, all additional wage requirements should be funded from
the existing baseline allocation.
iii. The shortfall in the budget results in a reviewed reduced staff
recruitment levels over MTEF period.
iv. This shortfall further reduces the operating and capital budget as
well.
3. Budget 2017/18
VII. Challenges with 2017/18 Budget
37
i. Legal Aid SA’s grant allocation was not reduced for financial year
2017/18 as confirmed by the final allocation letter dated 14
December 2016. However as noted in the previous slide a budget
shortfall exists due to the salaries budget not being fully funded.
ii. More than 70% of Legal Aid SA’s budget relates to the Client and
Community component of the balance score card which is directly
linked to the delivery of services.
iii. The balance of the budget is allocated towards programmes that
support the delivery of legal services.
iv. The operating expenditure budget has not been increased by the
macro increase over the five year period, except for expenditure
linked to contractual obligations e.g. office accommodation.
v. 2% of the budget has been allocated to capital expenditure.
3. Budget 2017/18
VIII. Expenditure trends over MTEF period
38
3. Budget 2017/18
IX. Staff trends over MTEF period
39
Notes on staff trends
3. Budget 2017/18
IX. Staff trends over MTEF period (continued)
i. Legal Aid SA has an approved staff establishment (in 2016/17) of 2,863 of
which 2,744 was filled and funded.
ii. As at end of December 2016 there were 2,185 (76.3%) (filled) legal
practitioners including paralegals and 559 non-legal staff making it a total of
2,744 (95.8%) recruited staff. Staff turn over as at 31 December 2016 is
3.78%.
iii. The additional funding relating to the court expansion programme and the
increase in legal capacity respectively enabled Legal Aid SA to increase its
legal capacity by 10 legal practitioner positions in FY2016/17.
iv. The staff establishment increased from 2,853 to 2,863 positions with the
additional funds allocated for court expansion and this is expected to remain
the same throughout the MTEF period.
40
i. Legal Aid SA will in general meet its performance targets for
2016/17.
ii. More than 99% of the Budget 2016/17 will be spent.
iii. Management of recruitment levels is in line with budget constraints.
iv. The Legal Aid Regulations requires urgent approval. The
Regulations as well as the Legal Aid Manual have to be gazetted.
v. Electronic Legal Aid Administration (eLAA 2016) system will be fully
operational during 2017/18.
vi. Budget shortfall of R202million over the MTEF period will impact
staffing. Service delivery is being monitored to further improve
alignment between supply and demand. It is noted that there will be
a reduction in services which will be tracked and reported on.
vii. In a climate of financial constraints it is noted that any proposals to
increase the responsibilities of Legal Aid SA is not financially viable.
4. Concluding Comments
41
Legal Aid SA Report on
Performance as at Q3: 2016/17
31 March 2017
Presentation to Portfolio Committee
on Justice and Correctional Services
1. Performance highlights as at Quarter 3: 2016/17
2. Report on performance as at Quarter 3: 2016/17
3. Challenges as at Quarter 3: 2016/17
Content
Legal Aid Performance Report as at Quarter 3: 2016/17
2
1. Performance Highlights as
at Q3: 2016/17
I. Legal representation provided in
321 570 matters,
278 315 (87%) criminal matters
43 255 (13%) civil matters
II. 329 466 matters finalised for the year to date,
288 702 criminal & 40 764 civil matters
III. General advice rendered to 237 910 clients
IV. 10 new impact matters approved (included in new matters)
V. Continued focus on children awaiting trial in custody – 105 children in custody for periods greater than 1 month as at the end of Q3
VI. Mixed model delivery system effectively maintained:Justice Centres 95%; Judicare 3%; Co-operation Partners 1%; Agency Agreements 1%
1. Performance Highlights as at Q3
FY 2016/171.1 Summary of performance
4
VII. Legal Aid SA Act 39 of 2014 fully operational
VIII.Annual Financial Statements 2015/16 approved at July 2016
Board meeting and submitted timeously to NT and the A-G.
15th unqualified audit from AG received
IX. Staff recruitment rate at 95.8%
X. IT platform including software, hardware and network stable
and available
XI. Integrated Annual Report 2015/16 compiled and submitted to
EA, NT, AG SA and Parliament, tabled in Q2 2016/17
XII.APP and Budget 2017/18 approved by the Board at its
November 2016 meeting
1. Performance Highlights as at Q3
FY 2016/171.1 Summary of performance continued
5
2. Report on Performance
as at Q3: 2016/17
2.1 Client, Community,
Stakeholder & Shareholder
2. Report on Performance 2.1 Client, Community, Stakeholder & Shareholder
P1 – Legal aid in criminal matters
Strategy I Delivering quality client-focused legal aid, in criminal matters, particularly
for the poor and vulnerable groups
Programme P1 To deliver quality criminal legal services that are client focused
Project P1-1 Access to Criminal Legal Aid services
Outputs Legal Aid provided to qualifying accused persons
Target 2016/17 DC coverage: ≥ 83%; RC coverage: ≥ 93%;
HC Coverage: All Legal Aid Matters
Delivery Coverage of criminal courts using internal practitioners:*
i. District Courts (DC) – 88% coverage (@ Q3 FY 16/17)
DC Matters: New – 227 285 ; Finalised – 244 225
ii. Regional Courts (RC) – 96% coverage (@ Q3 FY 16/17)
RC Matters: New – 37 644; Finalised – 41 015
iii. High Courts (HC) – representation provided in all matters
requiring legal aid
HC Matters: New – 2 712 ; Finalised – 3 462
*All figures are unaudited and subject to change
Variance and/or
Comment
Court coverage for DC and RC exceeds targets. This contributes positively
to the functioning of courts, many of which will not function if our
practitioners are not at court.
8
2. Report on Performance2.1 Client, Community, Stakeholder & Shareholder
P2 – Legal aid in civil mattersStrategy II Delivering quality client-focused legal aid, including to poor and vulnerable
groups, in civil matters with a priority focus on constitutional rights
Programme P2 Deliver quality civil legal aid services that are client-focused, with a priority for
constitutional rights
Project P2-1 Access to Civil Legal Aid Litigation services
Outputs Civil clients assisted within available capacity
Target 2016/17 JC ≥ 90% of civil practitioner target calculated at 95% recruitment
Judicare: ≥4% of JC civil matters
Co-op: Based on budget allocation
Delivery Civil legal matters TOTAL as at Q3: 43,246
i. JC: Target Q3: 33,771; Actual Q3: 38,960 (15% above target)
ii. Judicare: Target Q3: 1,558 ; Actual Q3: 1,111 (71% of target)
iii. Co-operation Partners: Actual Q3: 3,175 (On Target for Budget Allocation)
Variance and/or
Comment
Civil practitioners are exceeding new matter targets by 15% due to the
demand for civil legal services and we have had to implement a waiting period
for assistance in non-priority matters (1,156 – Q3 2016/17).
Civil Judicare is below target as there are limited number of Judicare
Practitioners accredited to render civil legal services.
9
2. Report on Performance2.1 Client, Community, Stakeholder & Shareholder
P3 – Legal aid in advice matters
Strategy III Delivering quality client-focused legal advice services
Programme P3 To deliver (increase access) quality legal advice services that are client-
focused
Project P3-1 Legal Advice Services
Outputs General advice service provided at all offices
Target 2016/17 General advice service available at all Legal Aid SA offices
Growth in legal advice matters: 0% (target set at 0% because of no
increase in capacity) (subject to demand and available capacity)
Delivery Provided assistance to 237 910 (6% below target) clients in general legal
advice matters:
i. JC and SO consultations – 187 975 (3.3% above target)
ii. ATP Paralegals – 20 862 (12.8% below target)
iii. Legal Aid Advice Line – 29 073 (13.9% below target)
Variance and/or
Comment
General advice services are demand based and no clients are turned
away. The Call Centre also experienced a 3 000% increase in prank calls
after a Lion Match Box advertising campaign especially subsequent to the
closure of the schools for the December holidays.
10
2. Report on Performance
2.1 Client, Community, Stakeholder & Shareholder
P4 – Impact services
Strategy IV Delivering client-focused Impact legal aid services, delivering access to
justice for poor and vulnerable groups particularly in social justice
matters
Programme P4 To give content to the constitution through impact litigation – which is
able to address Constitutional rights and socio-economic rights and
develop jurisprudence on social justice matters
Project P4-1 Impact Litigation addressing social justice
Outputs Legal Representation provided in impact matters
Target 2016/17 Impact matters as approved by the CCMC within budget
≥90% Success
Delivery 30 Impact matters were assessed and 10 new matters were approved
8 matters were finalised for the year to date
100% success rate for impact matters finalised for the year to date
Variance and/or
Comment
Impact litigation services are on track with 47 matters currently being
dealt with. The success rate, although not always guaranteed, is
indicative of a vigorous vetting process for cases taken on and funded.
These cases have had or have the potential to positively impact on the
lives of thousands of South Africans. (eg Silicosis, Myathaza v Metrobus,
Various Eviction Matters)
11
2. Report on Performance
2.1 Client, Community, Stakeholder & Shareholder
P5 – Effective functioning of the justice system
Strategy V Contributing to the effective functioning of the justice and legal sector to
assist in building safer communities
Programme P5 To participate in, contribute to and influence structures aimed at
improving the functioning of courts and justice system
Project P5-1 Participate in National and Provincial, efficiency enhancement structures
Outputs Participation in National and Provincial efficiency enhancement
structures
Target 2016/17 Participation in efficiency enhancement structures, including NEEC,
PEECs, Dev Comm and local Case Flow Meetings, as per meeting
schedules
Delivery The following meetings were attended for the year to date:
NEEC meetings – 1
PEEC meetings – 22
Development Committee meetings - 13
Variance and/or
Comment
Legal Aid SA ensures that appropriate levels of management are
deployed to effectively represent us at all these meetings.
12
2. Report on Performance2.1 Client, Community, Stakeholder & Shareholder
P6 – Accounting to the Executive Authority & Parliament Strategy VI Accounting to the Department of Justice & Correctional Services, and
Parliament on delivery of mandate, governance and sustainability
Programme P6 To account and provide assurance to the Department of Justice and
Correctional Services and Parliament on performance and governance
Project P6-1 Reporting and accountability to the Executive Authority
Outputs 4 quarterly performance reports and 1 Annual Report
Target 2016/17 Accurate reports submitted timeously to the Executive
Authority
4 Quarterly Performance Reports
1 Annual Report
Delivery As at the end of Q3 2016/17, the Q1, Q2 & Q3 2016/17 reports against
the Annual Performance Plan were submitted to the Executive Authority
The Integrated Annual Report 2015/16 was submitted to EA, NT, AG SA
and tabled in Parliament.
Variance and/or
Comment
Performance is on track
13
2.2 Finance & Sustainability
2. Report on Performance2.2 Finance & Sustainability
P7 & 8 – Financial Sustainability
Strategy VII Increasing financial sustainability
Programme P7
P8
To improve financial planning (budgeting)
Ensure strong and best practice financial reporting to ensure unqualified audit
and optimum financial maturity
Project P7-1
P8-1
Financial planning
Financial reporting
Outputs Approved balanced MTEF and Budget
Annual and mid year Financial Statements
Target 2016/17 Balanced budget (as per government grant allocation)
Financial reporting within a financial year compliant with relevant standards
and regulations resulting in optimum financial maturity
Delivery The MTEF which is balanced to the allocation and aligned to the Strategic Plan
was approved by the Board in July 2016.Budget 2017/18 was approved by the
Board at its November 2016 meeting.
Annual Financial Statements as at 31 March 2016, compliant with relevant
standards and regulations, were prepared and approved by the Board and
submitted to the Auditor General and NT timeously. Unqualified and a clean
Audit Report was expressed by the AG indicating optimum financial maturity
Variance and/or
Comment
Performance is on track
15
2. Report on Performance2.2 Finance & Sustainability
P9 - Governance
Strategy VIII Maintaining and enhancing good governance
Programme P9 To ensure best governance practices (PFMA compliance, King III guidelines
& other relevant statutory requirements)
Project P9-1 Compliance with statutory requirements
Outputs P9-1 Monthly statutory compliance reports
Target 2016/17 100% Compliance with statutory requirements including Legal Aid SA Act
and PFMA
Delivery Complied with most statutory requirements including PPPFA & PFMA.
All incidents of noncompliance with the PPPFA and the PFMA relate to the
conduct of individual employees and suppliers of Legal Aid SA.
Variance and/or
Comment
Web page introduced to effectively monitor adherence to statutory
compliance requirements
16
2. Report on Performance2.2 Finance & Sustainability
P10 – Combined Assurance
Strategy VIII Maintaining and enhancing good governance
Programme P10 Independent monitoring and oversight unit providing combined assurance
Project P10-1 Risk based Audit Coverage Plan
Outputs P10-1 One annual Audit Coverage Plan
One revised Mid-year Audit Coverage Plan
Audit reports issued as per the Audit Coverage Plan
Target 2016/17 ≥95% of Audit Coverage Plan delivered
Delivery 134 audit projects were conducted and completed as at the end of Q3,
resulting in a 81% completion of the annual Audit Coverage Plan
8 additional audit projects were also completed
Variance and/or
Comment
Remaining 19% of audit coverage is planned for completion in quarter 4
17
2. Report on Performance2.2 Finance & Sustainability
P11 - Board
Strategy VIII Maintaining and enhancing good governance
Programme P11 An effective and strategic Board providing leadership and oversight of
delivery on performance
Project P11-1 An effective functional Board
Outputs P11-1 Board meetings as per schedule; Governance instruments approved by
Board
Target 2016/17 Properly constituted Transitional Board/ New Board (in terms of Legal Aid
SA Act, 2014) and Board committees skilled to function effectively
Delivery As at the end of Q3, the Board was fully constituted
Board Committees functioned effectively
An effective and strategic Board provided leadership & oversight on
delivery of performance of Legal Aid SA
Variance and/or
Comment
Performance is on track
18
2.3 Internal Business
Processes
2. Report on Performance
2.3 Internal Business Processes (P12 – Regulatory Framework)
Strategy IX Maintaining a regulatory framework incorporating best practices aligned
to constitutional values
Programme P12 Ensure the promulgation and implementation of the rewritten Legal Aid
SA Act and the gazetting/implementation of the policy regulations and
procedures handbook
Project P12-1 Legal Aid SA Act (2014)
Outputs Take necessary steps to ensure that the new Legal Aid SA Act (2014) is
promulgated and operationalised
Also ensure updating of Act, where required
Target 2016/17 P12 -1 Legal Aid SA Act (2014) promulgated and transitional provisions
operationalised. Amendments to Legal Aid SA Act (2014) drafted, if
required, in co-operation with DoJ&CD for consideration by parliament
Delivery Legal Aid SA Act (2014) is operational. Initial amendments to the Act
submitted to DoJ&CD, incorporated into Judicial Matters Amendment Bill
introduced to Parliament by the Minister. Additional amendments will
have to be incorporated into another Amendment Bill.
Variance and/or
Comment
The Legal Aid SA Act is now fully operational and the relevant
governance structures have been properly constituted and are fully
functional as required by the Act
20
2. Report on Performance
2.3 Internal Business Processes (P12 – Regulatory Framework)
Strategy IX Maintaining a regulatory framework incorporating best practices aligned
to constitutional values
Programme P12 Ensure the promulgation and implementation of the rewritten Legal Aid SA Act and the
gazetting/implementation of the policy regulations and procedures handbook
Project P12 -2
P12-3
Legal Aid Regulations (Policy)
Legal Aid Manual (Procedures)
Outputs Take necessary steps to ensure that the Legal Aid Regulations and Manual are promulgated and
operationalised
Also ensure updating of Regulations & Manual where required
Target 2016/17 P12-2
P12-3
Draft Legal Aid Regulations containing policy on legal aid, prepared in conjunction with
DoJ&CD for consideration by Board. Board to submit comments on the first draft legal aid
regulations, drafted by the DoJ, by end July 2016.
Draft Legal Aid Manual setting out legal aid procedures, prepared for consideration by Board.
Legal Aid Manual approved by the Board and submitted 18 months after the Act comes into
operation (1 September 2016) to the Minister for tabling in Parliament and simultaneous
gazetting.
Delivery Regulations approved by Minister in Q3 for comment by stakeholders, distributed by
Legislative Drafting Unit to relevant stakeholders for comment.
Draft Legal Aid Manual approved by Board. Distributed to stakeholders for comment in Q4.
Variance and/or
Comment
Legal Aid Regulations – The Regulations are behind schedule & were therefore not
operational from 1 March 2017. The process was delayed by the initial Socio Economic Impact
Assessment Study which was added as a new requirement to the legislative process.
Legal Aid Manual - The Legal Aid Manual can only be implemented simultaneously with the
Legal Aid Regulations and therefore could not be brought into operation on 1 March 2017.
21
2. Report on Performance2.3 Internal Business Processes
P13 – Financial Management SCM
Strategy X Sustain strong financial management, supply chain and asset
management practices
Programme P13 To maintain a strong supply chain management framework and practices
Project P13-1 Supply chain management
Outputs Quarterly reports on acquisition of goods/services in excess of R0.5 mil
indicating compliance with PPPFA, PFMA and relevant NT regulations
Target 2016/17 100% compliance with PPPFA, PFMA and relevant NT regulations when
acquiring goods and services
Delivery Achieved material compliance with the PPPFA, PFMA and NT Regulations
when acquiring goods and services above R500 000.
Deviations above R1 million reported to the A-G and NT timeously. During
the 2015/16 Audit, the A-G identified a deviation which was not reported
timeously to the A-G and NT.
Variance and/or
Comment
The deviation was not reported timeously to the A-G due to an isolated
human error. Controls have been enforced to prevent re-occurrence of this
omission.
22
2.4 Employee &
Organisational Capacity &
Innovation & Learning
2. Report on Performance
2.4 Employee & Organisational Capacity & Innovation & Learning
P14 - Staffing
Strategy XI Expanding and capacitating the national footprint to increase points of
access to legal aid services, especially in rural and remote areas (including
the use of technology and other low cost service alternatives)
Programme P14 Appropriately staff all service delivery points
Project P14-1 Review and develop staffing plans to meet operational requirements for
Legal and Support positions
Outputs Recruitment statistics at ≥94%
Target 2016/17 Recruitment at ≥94% (because recruitment budgeted at 96% based on
available budget)
Delivery Staff recruitment rate as at Q3 at 95.8% with turnover excluding CAs at
3.78%
Variance and/or
Comment
Performance at targeted recruitment level
24
2. Report on Performance
2.4 Employee & Organisational Capacity & Innovation & Learning
P15 – National FootprintStrategy XII Developing and expanding the quality and expertise for each segment of the
national footprint
Programme P15 To strengthen and improve organisational competences and expertise required
for delivery of quality outcomes
Project P15-1
P15-2
Skills Development
Employment Equity
Outputs ATP & ATR submitted to SASSETA in compliance with the Skills Development Act
Diverse workforce in line with annual targets to achieve
Employment equity goals. EE Plan and Reports
Target 2016/17 Submission of the WSP and ATR in compliance with the Skills Development Act
EE Plan 2015 approved by Board and submitted to Department of Labour
Delivery Workplace Skills Plan 2016/17 and ATR 2015/16 was submitted to SASSETA in
compliance with the Skills Development Act.
EE is monitored and reported on a quarterly basis. Overall, African &
Coloured males and people challenged with disabilities are the underrepresented
groups. African females in the Senior, Top Management and Professional Levels
remains a challenge. Disability recruitment level improved from 1.78% to 1.82% of
target of 2%
Variance and/or
Comment
In the main performance is on track. Disability recruitment level is monitored
towards set target.
25
2. Report on Performance2.4 Employee & Organisational Capacity & Innovation & Learning
P16 - IT
Strategy XIII Building and maintaining an integrated and service-oriented cutting-edge
Information Technology system
Programme P16 Maintain a modern IT platform (incl. Hardware, software, middleware and IT
network infrastructure)
Project P16-
1,2,3
IT Network, Hardware, Software & Applications
Outputs Provide effective throughput of reliable data across accessible IT systems
Hardware and Software Applications available, reliable and dependable to
respond to and sustain business needs
Target 2016/17 Stable and reliable WAN VPN connected to all sites and
available 95% of the time
IT hardware capacity aligned to business needs and available 99% of the time
IT software and applications fully integrated and available 99% of the time
Delivery
WAN availability - 93.42%
Server hardware availability - 99.96%
IT Software and applications availability & stability 96.69%
100% of viruses blocked at firewall
Variance and/or
Comment
The WAN availability was 1.58% below the target of 95% as the availability of
the WAN was impacted by most sites shutting down the power during the
December closure.
26
3. Concluding Comments
Q3: 2016/17
I. Pending matters exceeding target turnaround times exceeded the
target for RC by 3%.
II. Processing of appeal matters still poses challenges, especially with
regards to obtaining transcripts of matters timeously.
III. 8 legal practitioners and 5 legal managers out of a total of 601
assessed did not achieve their quality targets as assessed by the
LQAU at the end of Q3. This represents 2,2% of legal practitioners
assessed.
IV. The Legal Aid Regulations/Manual require urgent approval and
gazetting.
V. Fruitless, wasteful and irregular expenditure, although immaterial in
quantity, continues to be monitored.
3. Challenges as at Q3 FY 2016/17
28
i. Legal Aid SA will in general meet its performance targets for 2016/17.
ii. More than 99% of the Budget 2016/17 will be spent.
iii. Management of recruitment levels is in line with budget constraints.
iv. The Legal Aid Regulations requires urgent approval. The Regulations as well as the
Legal Aid Manual have to be gazetted.
v. Electronic Legal Aid Administration (eLAA 2016) system will be fully operational during
2017/18.
vi. Budget shortfall of R202million over the MTEF period will impact staffing. Financial
sustainability has been reviewed by the Board, in consultation with management and
staff, to address the budget shortfall. The budget shortfall will be managed by focusing
on a cap on the compensation of employees and implementing cost-cutting efficiency
measures. Service delivery is being monitored to further improve alignment between
supply and demand. It is noted that there will be a reduction in services which will be
tracked and reported on.
vii. Thus all programmes in the Strategic Plan will be maintained at levels possible within
the financial constraints. The performance targets for 2017/18 financial year will be
revised accordingly.
viii. In a climate of financial constraints it is noted that any proposals to increase the
responsibilities of Legal Aid SA is not financially viable
3. Concluding Comments
29
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