Legal Aid SA Briefing of Portfolio Committee on Justice

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


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%


7


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


8


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%;


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


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


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


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


P10 – Combined Assurance


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


P11 – Board


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


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


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


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


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


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.


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

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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

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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

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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%;


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.

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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.

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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.

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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)

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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.

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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

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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


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P9 - 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

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P10 – Combined Assurance


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

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P11 - Board


Programme P11 An effective and strategic Board providing leadership and oversight of


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


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2.3 Internal Business

Processes


2.3 Internal Business Processes (P12 – Regulatory Framework)



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

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2.3 Internal Business Processes (P12 – Regulatory Framework)



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.

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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


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.

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2.4 Employee &

Organisational Capacity &

Innovation & Learning


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

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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.

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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.

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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

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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


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Documents

Legal Aid SA Briefing of Portfolio Committee on Justice