Briefing of Portfolio Committee of Justice. Strategic Plan Annual Performance Plan Budget

Transcription

1 Briefing of Portfolio Committee of Justice Strategic Plan Annual Performance Plan Budget May

2 Content Introduction I. Legal Aid SA Snapshot March 2015 Strategic Plan I. Introduction II. Methodology III. Process IV. Environmental Analysis (Context) V. Strategic Risks VI. Vision, Mission and Values VII.Outcomes and Objectives VIII.Strategic Shift IX. Strategies X. Programmes Annual Performance Plan I. Introduction to APP II. Strategies Programmes & Targets Budget I. Introduction to Budget II. Government Grant Allocations III. Summarised MTEF IV. Analysis of Budget V. Balanced Scorecard Budget 2015 VI. Assumptions informing the Budget VII. Explanation of variances VIII. Expenditure Trends over MTEF period IX. Staff Trends over MTEF period X. Programmes requiring additional capacity 2

3 INTRODUCTION LEGAL AID SA SNAPSHOT 2014/15 3

4 Snapshot of Performance 2014/15 Performance Indicator LEGAL AID DELIVERY i. New legal aid matters ii. New legal aid advice matters 2012/ / /15 438, , , , , ,241 iii. New Impact matters iv Total Legal Matters 736, , ,592 v. Children assisted 26,105 16,858 16,530 vi. % civil matters 13% 13% 12% vii. National Delivery Footprint 64 Justice Centres 64 Satellite Offices 13 High Court Unit 13 Civil Units Note: 2014/15 figures are unaudited 64 JCs 64 SOs 13 HCUs 13 Civil Units 64 JCs 64 SOs 13 HCUs 13 Civil Units Annual Performance Report 2013/14 4

5 Snapshot of Performance 2014/15 Note: 2014/15 figures are unaudited Performance Indicator FINANCIAL MANAGEMENT 2012/ / /15 viii Budget R1,4 billion R1,5 billion R1,6 billion ix % expenditure 98.7% 99.2% 98.7% x Auditor-General s Report PEOPLE DEVELOPMENT Unqualified audit (12 th year) No matters of emphasis (8 th Y) Unqualified audit (13th year) No matters of emphasis (9th Y) Not yet finalised xi Staff Budgeted xii Staff Recruited % legal staff (incl paralegals) 79% 79% 79% xiii Recruitment levels 95.6% 96% 94% xiv Best Employer accreditation 4 th year 5 th year 6 th year Annual Performance Report 2013/14 5

6 STRATEGIC PLAN

7 Strategic Plan I. Introduction 7

8 I. Introduction I. Third year of implementation of current Strategic Plan II. New Strategic Plan developed to align with term of office of government. Commences 1 April III. Strategic Plan and Annual Performance Plan prepared in compliance with the National Treasury Regulations on Planning and Reporting. IV.SP approved by Board in November 2014 and submitted to the Executive Authority on 29 January V. APP Approved by Board in February 2015 and submitted to the EA on 3 March

9 Strategic Plan II. Methodology 9

10 Strategic Plan Methodology Legal Aid SA Context / Environment Balanced Scorecar d BS External Client, Community Finance & Stakeholder Sustainabi & lity Shareholder F&S CCSS Business Processes BP Internal Employee & Organisation al Capacity E&O-C SWOT ANALYSIS Opportunities Threats Strength Weaknesses STRATEGIC RISKS BS CCSS F&S BP E&O-C VISION & MISSION & VALUES OUTCOMES & OBJECTIVES BS CCSS F&S BP E&O-C STRATEGIC SHIFTS BS CCSS F&S BP E&O-C STRATEGIES BS CCSS F&S BP E&O-C PROGRAMMES BS CCSS F&S BP E&O-C 10

11 Strategic Plan III. Process 11

12 III. Process Strategic Plan Process I. Concept document for the preparation of the Strategic Plan prepared for approval by the Board II. Strategic Plan Draft 1 prepared for discussion at the Board Strategic Plan Workshop held in July 2014 and approved by the Board for consultation with stakeholders III. Strategic Plan Draft 2 as approved by the Board used for consultation with Management Committees, Staff as well as external provincial and national Stakeholders IV. The Strategic Plan Draft 3, incorporating stakeholder comments, was submitted to the Board meeting of the 29th November 2014 for approval V. The Strategic Plan Final Draft incorporating stakeholder and Board comments was submitted to the Executive Authority in January 2015 for approval 12

13 Strategic Plan IV. Environmental Analysis 13

14 IV. Environmental Analysis Context I. Service delivery footprint must respond to population demographics, inmigration patterns and urban/rural divide; legal aid services must be accessible II. Unemployment and poverty linked to economic growth which is slow III. Impact of recession on government revenue and expenditure IV. NDP being implemented to address unemployment, poverty and inequality V. NDP focus on Building Safer communities includes priority of Strengthening the CJS through the JCPS Seven Point Implementation Plan VI. Legal Aid Act (Act No, 39 of 2014) to enhance the functioning and governance of organisation VII. Role in assisting other countries to develop legal aid systems to align to the UN Principles and Guidelines on Legal Aid in Criminal Matters VIII.Collaboration and partnership with stakeholders to raise awareness of constitutional rights and legal aid services to enable poor and vulnerable to access justice IX. Use proactive marketing and advertising to targeted at clients/potential clients to grow the brand 14

15 IV. Environmental Analysis Context continued X. Criminal and civil legal aid services provided through national footprint of 64 JCs and 64 SOs and a cost-effective mixed model delivery method XI. Effective quality intervention and monitoring measures in place XII. Legal services somewhat hampered by capacity constraints XIII.Legal advice provided through paralegals at JCs and SOs and Legal Aid Advice Line XIV.Stable staff component with high recruitment rates XV. Performance Management System in line with best practice of employee rewards and a good EVP XVI.Organisational Culture, Employee Wellness and Leadership Development Programmes in place 15

16 Strategic Plan V. Strategic Risks 16

17 V. Strategic Risks Strategic risks to be mitigated to achieve the Vision Client Community I. Challenges to the Rule of Law II. Lack of capacity to deliver on the demand for legal services III. Poor quality of the Legal Services provided by Justice Centres, Judicare Practitioners, Co-operation Partners, Agency Agreements Legal and Justice IV. Lack of confidence in the justice system due to ineffective and inefficient processes (ability to resolve cases timeously, fairly and efficiently) Finance and Governance V. Budgetary constraints impacting on Legal Aid SA s ability to deliver on its mandate VI. Ineffective governance structures and processes VII. Unethical, corrupt or fraudulent practices or acts Internal Business Process VIII. Poor transition to new regulatory framework of Legal Aid South Africa Act (2014) Employee and Organisational Capacity/Innovation and Learning IX. Inadequate IT infrastructure to support the business needs X. Lack of engagement with the organisational values and culture by employees 17

18 Strategic Plan VI. Vision, Mission, Values 18

19 VI. Vision, Mission, Values Vision and Mission VISION (2030): A South Africa in which the rights and responsibilities enshrined in the Constitution are realised to ensure equality, justice and a better life for all. MISSION (2030): To be the leader in the provision of accessible, sustainable, ethical, quality and independent legal services to the poor and vulnerable. 19

20 VI. Vision, Mission, Values Values I. Passion for Justice/Protection of Human Rights To give effect to the rights, responsibilities and values enshrined in our Constitution and to be committed to promoting the rule of law and increasing access to justice for all. II. Ubuntu To value diversity and treat every person with compassion, care, respect and dignity. III. Integrity To live by the highest ethical and professional standards, demonstrating transparency, honesty and fairness in all our interactions. IV. Accountability To be accountable to our clients, the public and stakeholders by ensuring compliance with our mandate within the framework of good governance and effective and efficient utilisation of public funds. V. Service Excellence To provide quality legal services and strive for excellence and innovation. VI. People Centred To empower our clients and communities to make informed choices about their legal matters. To create a caring, enabling, safe, productive and rewarding work environment that recognises contributions from individuals and teams. 20

21 Strategic Plan VII. Outcomes and Objectives 21

22 VII. Outcomes and Objectives Outcome 1: Quality justice for all, focusing on the poor and vulnerable, thus CONTRIBUTING TO BUILDING SAFER COMMUNITIES Client & Community O1: Empowered clients and communities making informed choices about their legal rights and responsibilities. O2: All poor and vulnerable persons able to access quality legal services to protect and defend their rights. Stakeholder O3: An accessible, fair, efficient, independent and effective justice system serving all in South Africa, contributing to building safer communities Shareholder O4: Delivering on our constitutional and statutory mandate in an independent, accountable and sustainable manner. Finance & Sustainability O5: An organisation embedding sustainable practice in every segment of the organisation, to positively impact on society, the economy and the environment. O6: Embedding good governance, high ethical standards and integrity, high performance and accountability. 22

23 VII. Outcomes and Objectives Outcome 2: Respected, accessible, high performing and sustainable public entity impacting positively on society, the economy and the environment Internal Business Processes O7: Revised Legal Aid Act and its subsidiary legislation enacted and implemented. O8: An effective, efficient, economic and environmentally responsive supply chain management system supporting client services delivery and internal business processes. Employee & Organisational Capacity O9: An appropriately resourced national footprint reaching the poor and vulnerable persons requiring legal assistance. O10: Competent, dedicated, motivated and empowered employees, capacitated to deliver the constitutional mandate and organisational strategies. O11: A modern and appropriate, integrated, secure and cost-effective IT Platform supporting the provision of client services and linkages and enabling internal business needs. 23

24 Strategic Plan VIII. Strategic Shift 24

25 VIII. Strategic Shift The overall strategic shift to be achieved in the period: Increasing organisational MATURITY and SUSTAINABLE HIGH PERFORMANCE and EXCELLENCE in all segments of the organisation over the next decade, positively touching the lives of many more South Africans thus ensuring the OUTCOME of QUALITY JUSTICE FOR ALL. I. Existing and expanded points of access for clients further developed, within available funding. II. Priority to civil legal aid assistance in Constitutional rights related matters. III. Client Value Proposition encapsulating client focus and value add to clients. IV. Use of new technology and social media improving communication and engagement with clients and potential clients as well as stakeholders. V. Quality rights based legal aid services delivering desired outcomes including a fearless and independent legal defence of clients. VI. Quality management responsive to client and stakeholder feedback on quality. VII. Contributing to BUILDING SAFER COMMUNITIES by implementing the adopted protocols from the Criminal Justice Review and the Civil Justice Review. VIII.Proactively making the justice system function more effectively and efficiently. 25

26 VIII. Strategic Shift continued IX. Brand awareness and image improved so that Legal Aid SA is identified as being part of the safety net for poor and vulnerable persons with regard to their social justice matters. X. Quality of services and client relationship management focused on to improve brand experience and brand loyalty. XI. Holistic Sustainability Strategy (including Financial and Non-Financial) developed and implemented. XII. Best practices and Codes on Governance implemented. XIII.Effective strategic leadership which would include a capacitated transitional Board. XIV.Legal Aid Act (2014) implemented, including Legal Aid Regulations and Legal Aid Handbook. XV. Unqualified audits maintained. XVI.Competitive Employee Value Proposition (EVP) implemented. XVII.Adequate IT infrastructure to meet business need. XVIII.Management information further refined to provide alerts to emerging risks. XIX.A values-based high performance culture strengthened. XX. Leadership enabling sustainable performance and creating a humanistic work environment. 26

27 Strategic Plan IX. Strategies 27

28 IX. Strategies Client & Community S1: Delivering quality, client-focused legal aid in criminal matters, particularly for the poor and vulnerable groups S2: Delivering quality client-focused legal aid, including to poor and vulnerable groups, in civil matters with a priority focus on constitutional rights S3: Delivering quality client-focused legal advice services S4: Delivering client-focused Impact legal aid services, delivering access to justice for poor and vulnerable groups particularly in social justice matters S5: Contributing to the effective functioning of the justice and legal sector to assist in building safer communities S6: Accounting to the Department of Justice & Correctional Services, and Parliament on delivery of mandate, governance and sustainability Finance & Sustainability S7: Increasing financial sustainability S8: Maintaining and enhancing good governance 28

29 IX. Strategies continued Business Processes S9: Maintaining a regulatory framework incorporating best practices aligned to constitutional values S10: Sustain strong financial management, supply chain and asset management practices Employee & Organisational Capacity S11: 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 as well as other low cost service alternatives) S12: Developing and expanding the quality and expertise for each segment of the national footprint S13: Building and maintaining an integrated and service-oriented cutting-edge Information Technology system 29

30 Strategic Plan X. Programmes 30

31 X. Programmes Client & Community O1: Empowered clients and communities making informed choices about their legal rights and responsibilities S1: Delivering quality, client-focused legal aid in criminal matters, particularly for the poor and vulnerable groups Programme 1: To deliver quality criminal legal aid services that are client-focused O2: All poor and vulnerable persons able to access quality legal services to protect and defend their rights S2: Delivering quality client-focused legal aid, including to poor and vulnerable groups, in civil matters with a priority focus on constitutional rights Programme 2: Deliver quality civil legal aid services that are client-focused, with a priority for constitutional rights S3: Delivering quality client-focused legal advice services Programme 3: To deliver (increase access) quality legal advice services that are client-focused S4: Delivering client-focused Impact legal aid services, delivering access to justice for poor and vulnerable groups particularly in social justice matters Programme 4: 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 31

32 X. Programmes Client & Community O3: An accessible, fair, efficient, independent and effective justice system serving all in South Africa, contributing to building safer communities S5: Contributing to the effective functioning of the justice and legal sector to assist in building safer communities Programme 5: To participate in, contribute to and influence structures aimed at improving the functioning of courts and justice system O4: Delivering on our constitutional and statutory mandate in an independent, accountable and sustainable manner S6: Accounting to the Department of Justice and Correctional Services, and Parliament on delivery of mandate, governance and sustainability Programme 6: To account and provide assurance to the Department of Justice and Correctional Services and Parliament on performance and governance 32

33 X. Programmes Finance & Sustainability O5: An organisation embedding sustainable practice in every segment of the organisation, to positively impact on society, the economy and the environment S7: Increasing financial sustainability Programme 7: To improve financial planning (budgeting) Programme 8: Ensure strong and best practice financial reporting to ensure unqualified audit and optimum financial maturity O6: Embedding good governance, high ethical standards and integrity, high performance and accountability S8: Maintaining and enhancing good governance Programme 9: To ensure best governance practices (PFMA compliance, King III guidelines and other relevant statutory requirements) Programme 10: Independent monitoring and oversight unit providing combined assurance Programme 11: An effective and strategic Board providing leadership and oversight of delivery on performance 33

34 X. Programmes Internal Business Processes O7: Revised Legal Aid Act and its subsidiary legislation enacted and implemented S9: Maintaining a regulatory framework incorporating best practices aligned to constitutional values Programme 12: Ensure the promulgation and implementation of the rewritten Legal Aid Act and the gazetting/implementation of the policy regulations and procedures handbook O8: An effective, efficient, economic and environmentally responsive supply chain management system supporting client services delivery and internal business processes S10: Sustain strong financial management, supply chain and asset management practices Programme 13: To maintain a strong supply chain management framework and practices 34

35 X. Programmes Employee & Organisational Capacity & Innovation & Learning O9: An appropriately resourced national footprint reaching the poor and vulnerable persons requiring legal assistance S11: 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 as well as other low cost service alternatives) Programme 14: Appropriately staff all service delivery points O10: Competent, dedicated, motivated and empowered employees capacitated to deliver the constitutional mandate and organisational strategies. S12: Developing and expanding the quality and expertise for each segment of the national footprint Programme 15: To strengthen and improve organisational competences and expertise required for delivery of quality outcomes O11: A modern and appropriate, integrated, secure and cost-effective IT Platform supporting the provision of client services and linkages and enabling internal business needs. S13: Building and maintaining an integrated and service-oriented cutting-edge Information Technology system Programme 16: Maintain a modern IT platform (including hardware, software, middleware and IT network infrastructure) 35

36 ANNUAL PERFORMANCE PLAN

37 Annual Performance Plan I. Introduction 37

38 I. Introduction The Annual Performance Plan 2015/16 will commence with the implementation of the 1 st year of the Strategic Plan ; The Programmes to action the Strategies are outlined. Key projects are outlined in this document with details given in the APP document. Also detailed are the targets relative to the base year of performance 2014 The Budget for individual strategies are given to indicate how budget is apportioned 38

39 Annual Performance Plan Strategies Programmes & Targets 39

40 Annual Performance Plan Strategy I Delivering quality client-focused legal aid, in criminal matters, particularly to the poor and Programme P1 To deliver quality criminal legal services that are client focused Project P1-1 Access to Criminal Legal Aid services Outputs Base Year performance 2014 Target Y1 2015/16 Target Y2 2016/17 Budget for strategy Comment Legal Aid provided to qualifying accused persons Total Criminal Matters: 390,000 (estimated) DC Coverage:87%; RC Coverage:97%; HC Coverage: All Legal Aid Matters DC coverage: 83%; RC coverage: 93%; HC Coverage: All Legal Aid Matters DC coverage: 83%; RC coverage: 93%; HC Coverage: All Legal Aid Matters 936,088,886 Practitioner per court model for DC and RC 40

41 Annual Performance Plan 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. Project P2-1 Access to Civil Legal Aid Litigation Services Outputs Base Year 2014 performance Target Y1 2015/16 Target Y2 2016/17 Budget 225,659,846 Comment Civil clients assisted within available capacity Total Civil Matters: 54,000 (estimated) JC = 47,760; Judicare = 2,240; Co-op = 4,000 (estimated) JC 90% of civil practitioner target calculated at 95% recruitment; Judicare: 4% of JC civil matters Co-op: Based on budget allocation JC 90% of civil practitioner target calculated at 95% recruitment; Judicare: 4% of JC civil matters Co-op: Based on budget allocation Civil Legal Aid capacity is fully utilized in meeting current demand for services. Civil matters will not increase significantly due to limited additional funding. 41

42 Annual Performance Plan Strategy III Delivering quality client-focused primary legal advice services Programme P3 Project P3-1 Legal Advice Services Outputs Base Year 2014 performance Target Y1 2015/16 Target Y2 2016/17 Budget 45,265,519 Comment To deliver (increase access) quality legal advice services that are client-focused Increase general advice service provided at all offices Total JC, SO & ATD Legal Advice Matters: 260,400 (estimated); Legal Aid Advice Line: 43,500 (estimated) General advice service available at all Legal Aid SA offices. Growth in legal advice matters: 5% (subject to demand and capacity) General advice service available at all Legal Aid SA offices. Growth in legal advice matters: 5% (subject to demand and capacity) Clients are provided with first level advice at 128 offices which assists them to address legal problems that do not require litigation. 42

43 Annual Performance Plan 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 Base Year performance 2014 Target Y1 2015/16 Target Y2 2016/17 Budget 9,460,434 Comment Legal Representation provided in impact matters Impact Matters Approved: 20 Impact Matters Handled: 54 (estimated) Success rate (estimated) 90% Impact matters as approved by the CCMC within budget 90% Success Impact matters as approved by the CCMC within available budget 90% Success The Impact Litigation programme gives content to the rights contained in the constitution by means of class action and precedent setting litigation. 43

44 Annual Performance Plan 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 Base Year 2014 performance Target Y1 2015/16 Target Y2 2016/17 Budget 3,501,829 Comment Participation in National and Provincial efficiency enhancement structures Represented at: 1 NEEC; 1 Dev Comm; 9 PEECs; Participation in efficiency enhancement structures, including NEEC, PEECs, Dev Comm and local Case Flow Meetings, as per meeting schedules Participation in efficiency enhancement structures, including NEEC, PEECs, Dev Comm and local Case Flow Meetings, as per meeting schedules Legal Aid SA ensures the deployment of appropriate levels of management to attend all local, provincial and national efficiency enhancement structures and to participate and contribute effectively to improve the functioning of the Justice System. 44

45 Annual Performance Plan Strategy VI Accounting to the Department of Justice & Correctional Services, and Parliament on delivery of mandate, governance and sustainability. Programme P6 Project P6-1 Outputs Base Year performance 2014 Target Y1 2015/16 Target Y2 2016/17 Budget for strategy Comment To account and provide assurance to the Department of Justice and Correctional services and Parliament on performance and governance To account and provide assurance to the Department of Justice and Correctional services and Parliament on performance and governance 4 quarterly performance reports and 1 Annual Report 4 quarterly performance reports at end March Annual Report (2013/14) audited and submitted to Executive Authority and Parliament Accurate reports submitted timeously to the Executive Authority 4 quarterly performance reports 1 Annual Report Accurate reports submitted timeously to the Executive Authority 4 quarterly performance reports 1 Annual Report R302,290 Performance reporting against the Strategic Plan and APP

46 Annual Performance Plan Strategy VII Increasing financial sustainability Programme Project Outputs Base Year performance 2014 Target Y1 2015/16 Target Y2 2016/17 Budget Comment P7 P8 P7-1 P8-1 P7-1 P8-1 To improve financial planning (budgeting) Ensure strong and best practice financial reporting to ensure unqualified audit and optimum financial maturity Financial planning Financial reporting Approved balanced MTEF and Budget Financial planning aligned to MTEF 2014/ / /15 financial reporting compliant with relevant standards and regulations Balanced budget (as per government grant allocation) Financial reporting within a financial year compliant with relevant standards and regulations resulting in optimum financial maturity Balanced budget (as per government grant allocation) Financial reporting within a financial year compliant with relevant standards and regulations resulting in optimum financial maturity R10,599,355 To ensure balanced budget and MTEF is submitted timeously to NT and DoJ 46

47 Annual Performance Plan Strategy VIII Maintaining and enhancing good governance Programme Project Outputs Base Year performance 2014 Target Y1 2015/16 Target Y2 2016/17 Budget P9 P10 P11 P9-1 P10-1 P11-1 P9-1 P10-1 P11-1 P9-1 P10-1 P11-1 P9-1 P10-1 P11-1 P9-1 P10-1 P11-1 To ensure best governance practices (PFMA compliance, King III guidelines & other relevant statutory requirements) Independent monitoring and oversight unit providing combined assurance An effective and strategic Board providing leadership and oversight of delivery on performance Compliance with statutory requirements Risk based Audit Coverage Plan An effective functional Board Compliance with statutory requirements 95% of Audit Coverage Plan delivered Board properly constituted and functioning effectively 100% compliance with statutory requirement including Legal Aid Act and PFMA 95% of Audit Coverage Plan delivered Board properly constituted and functioning effectively 100% Compliance with statutory requirements 95% of Audit Coverage Plan delivered Transitional Board properly constituted and functioning effectively in Terms of Legal Aid Act 39 of % compliance with statutory requirement including Legal Aid Act and PFMA 95% of Audit Coverage Plan delivered A new Board properly constituted and functioning effectively in Terms of Legal Aid Act 39 of 2014 R15,030,175 An effective internal control system; Internal audit fully capacitated and Quality Assurance Briefing: Strategic Plan 2015; APP2015; Improvement Budget Programme(QAIP) 2015 fully implemented Comment 47

48 Annual Performance Plan 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 Act and the gazetting/implementation of the policy regulations and procedures handbook Project P12-1 Legal Aid Act (2014) Outputs Base Year 2014 performance Target Y1 2015/16 Target Y2 2016/17 Budget 816,697 Take necessary steps to ensure that the new Legal Aid Act (2014) is promulgated and operationalised Also ensure updating of Act where required Legal Aid Act (1969) Legal Aid SA Act (Act 39 of 2014) gazetted Dec2014. Effective 1 March Legal Aid Guide 2014 Legal Aid SA Act (2014) effective and transitional provisions operationalised. Draft Legal Aid Regulations containing policy on legal aid, prepared in conjunction with DOJ for consideration by Board 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. The Legal Aid SA Act 39 of 2014 comes into operation on 1 March 2015 with a transitional board for 1 year. The Legal Aid Regulations and Manual will come into effect within 24 months of the Act coming into effect. 48 Comment

49 Annual Performance Plan 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 Base Year 2014 performance Target Y1 2015/16 Target Y2 2016/17 Budget Quarterly reports on acquisition of goods/ services in excess of R0.5 mil indicating compliance with PPPFA, PFMA and relevant NT regulations 100% compliance with PPPFA, PFMA and relevant NT regulations 100% compliance with PPPFA, PFMA and relevant NT regulations when acquiring goods and services Q1 2015/16: Procurement Plan to NT 100% compliance with PPPFA, PFMA and relevant NT regulations when acquiring goods and services R13,594,085 Comment To ensure 100% compliance with PPPFA, PFMA and relevant NT regulations 49

50 Annual Performance Plan Strategy X Strengthening and growing a sustainable visible and recognized brand Programme Project Outputs Base Year performance 2014 Target Y1 2015/16 Target Y2 2016/17 Budget R Develop and maintain a strong and recognized legal aid brand Develop and implement brand strategy including reputation management, communications and marketing plans Brand strategy including branding of justice centres, courts, prisons and SAPS holding cells >95% of Marketing/advertising and communications plans implemented Legal Aid SA brand strategy 2014/15 Brand strategy implemented >95% of Marketing/advertising and communications plans implemented Brand strategy implemented >95% of Marketing/advertising and communications plans implemented Comment Legal Aid SA continues to ensure relevance of the brand strategy, brand visibility and awareness by marketing the Legal Aid SA services using traditional media (both print and electronic). Continuous usage of the annual national omnibus to assess usage and understanding of Legal Aid SA brand and its services amongst the lower LSM groups. 50

51 Annual Performance Plan 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 96% Base Year 2014 performance Target Y1 2015/16 Target Y2 2016/17 Recruitment levels at 94% Budget 317,388,177 Comment Staffing plans implemented timeously Recruitment level 96% Staffing plans implemented timeously Recruitment level 96% Recruitment levels maintained 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. 51

52 Annual Performance Plan Strategy XII Developing and expanding the quality and expertise for each segment of the national footprint Programme P15 Project P15-1 Skills Development Outputs Base Year performance 2014 Target Y1 2015/16 Target Y2 2016/17 Budget R Comment To strengthen and improve organisational competences and expertise required for delivery of quality outcomes Revised competency framework and leadership pipeline Aligned IDPs and Annual Training Plan implemented Timeous submission WSP and ATR to SASSETA Staff training: legal - 7,751 hours (50 Estimated for FY: 11,555 (56%) Non-legal Manager WSP(2014/15) and ATR (2013/14) submitted Employment Equity with improved representivity across all levels including disabilitychallenges still on African women and people with disabilities Submission of the WSP and ATR in compliance with the Skills Development Act EE Plan 2015 approved by Board and submitted to DoL. EE Targets defined in Plan. Submission of the WSP and ATR in compliance with the Skills Development Act EE performance levels nationally, regionally and Justice Centre level monitored and reviewed against 5 year EE Plan 2015 Investment in training critical to improving quality and efficiency of services Learning culture critical to achieving excellence in each segment 52

53 Annual Performance Plan Strategy XIII Building and maintaining an integrated and serviceoriented cutting-edge Information Technology system Programme Project Outputs Base Year performance 2014 Target Y1 2015/16 Target Y2 2016/17 Budget for strategy Comment P16 P Maintain a modern IT platform (incl. Hardware, software, middleware and IT network infrastructure) IT Hardware, Software & Applications, and IT network Hardware and Software Applications available, reliable and dependable to respond to and sustain business needs Provide effective throughput of reliable data across accessible IT systems 99% availability of Hardware and Software Applications IT Network in place Enhanced, reliable and stable IT platform Upgraded IT network to improve throughput of data and information Effective operation of a modern technology application on core Legal Aid Administration System R44,453,913 An integrated IT system with streamlined performance processes incorporating flexible features of remote mobility access 53

54 BUDGET

55 Budget I. Introduction to Budget II. Government Grant Allocations III. Summarised MTEF IV. Analysis of Budget V. Balanced Scorecard Budget 2015 VI. Key Assumptions in Budget preparations VII. Explanation of variances VIII.Expenditure Trends over MTEF period IX. Staff Trends over MTEF period X. Civil legal aid 55

56 Budget I. Introduction National Treasury indicated reductions/cuts to the baseline allocation of R61.8 million in 2015/16 and R92.7 million in 2016/17 financial years The NT Budget guidelines require entities to reprioritise spending pressures within the budget allocation Cash flow to be managed effectively ensuring that budget reductions/cuts are funded from cash reserves and the Service delivery will not be negatively impacted by the budget reduction 56

57 Budget II. Government Grant Allocations Year New Funding Budget cuts (to be funded from cash reserves) Children s Act & Child Justice Act Case Backlog Funds Total Government Grant (includes new funds & Children's Acts & Case Backlog) 2014/15 26,000,000 10,444,000 36,039,000 1,573,813, /16 23,000,000 (61,819,000) 0 21,120,000 1,584,805, /17 (92,728,000) 22,282,000 1,577,171, /18 23,396,000 1,764,394,000 Notes: 1. The new funding of R26 million in 2014/15 consists of R5 million for increase in legal capacity and R21 million from IJS for e LAA system development project. 2. The new funding of R23 million in 2015/16 consists of R5 million for increase in legal capacity and R18 million to increase legal practitioners for court expansion programme. 3. The case backlog amount of R21.1 million in 2015/16 and its carry through costs over the MTEF period is the top up funding for conversion of temporary posts to permanent posts. 57

58 Budget III. Summarised MTEF Budget Description Salaries and related costs Budget 2014/15 (current year) MTEF Year /16 (Budget) MTEF Year /17 MTEF Year /18 1,172,350,395 1,235,222,820 1,266,510,276 1,331,056,259 Case backlog 19,300,000 21,120,000 22,282,000 23,396,000 Direct expenditure Operating expenditure Capital expenditure 115,704, ,033, ,201, ,416, ,005, ,396, ,372, ,892,185 99,001,145 24,266,303 26,000,629 26,000,629 Total Budget 1,633,458,910 1,635,121,246 1,726,880,285 1,811,375,285 58

59 Budget IV. Analysis of Budget Budget Description Budget 2014/15 (current year) Budget 2015/16 (MTEF Y1) Variance (%) Salaries and related costs 1,172,350,395 1,235,222,820 5% Case backlog 19,300,000 21,120,000 9% Direct expenditure 115,704, ,033,241-12% Operating expenditure Capital expenditure 227,005, ,396, % 99,001,145 24,266,303-75% Total Budget 1,633,458,910 1,635,121, % 59

60 Budget V. Budget alignment to APP 2015: Budget per component of the Balanced Scorecard 1 Component of the Balanced Scorecard Client, Community, Stakeholder & Shareholder Budget 2015/16 % of Budget 1,165,552, % 2 Finance & Sustainability 25,629, % 3 Internal Business Processes 14,410, % 4 Employee & Organisational Capacity 429,528, % 5 Additional Programmes Total Budget R 1,635,121, % 60

61 Budget VI. Key assumptions in Budget preparations The following considerations were made when preparing the 2015/16 budget: Legal Aid South Africa s five (5) year Draft Strategic Plan The year on year increase of the National Treasury allocation including additional funding over the MTEF period. Future financial sustainability of the organisation. The proportion of direct service delivery costs to administration support costs. The Capital Asset Replacement Programme. The National Treasury Instructions 01 of 2013/14. Budget Cuts letter dated 27 November

62 Budget VII. Explanation of variances Salaries and related costs increased by 5% due to COLI and PPI Other direct expenditure decreased by 12% due to rollover funding relating to impact litigation (mainly for Marikana commission) which is included in the 2014/2015 financial year. The overall operating budget increased by 1% due to budget constraints. Only contractual obligation related expenditure items were increased. The overall capital expenditure decreased by 75%.The decrease is due to once off rollover and elaa funding project included in the 2014/2015 financial year. 62

63 Budget VIII. Expenditure trends over the MTEF period National Treasury implemented budget reductions as per Cabinet resolution for entities with high cash balances. Legal Aid SA's grant allocation was reduced by R61.8 million in 2015/16 and R92.7 million in the2016/17 fiscal years. The reductions in budget allocations will be funded from Legal Aid SA's cash and cash equivalent. This means that service delivery will not be negatively impacted by these reductions. The expenditure focus over the five year period is on the delivery of legal services which is the core business of Legal Aid South Africa. More than 70% of Legal Aid SA's budget has been allocated to the Client and Community component of the balance score card which is directly linked to the delivery of legal services. This is the trend over the five year period ending 31 March The balance of the budget is allocated towards programmes that support the delivery of legal services. Budget constraints continue to affect the operations of Legal Aid SA. The current salaries and related costs budget, does not make provision for relief capacity of legal professionals. The current legal practitioner per court ratio, does not make provision for periods when the legal practitioner is not available to service a court for any particular reason. The salaries and related costs budget is also negatively impacted by the cost of living increases which are higher than the macro increases and these have to be absorbed within the baseline allocation. 63

64 Budget VIII. Expenditure trends over the MTEF period -continued The operating expenditure budget has not been increased by the macro over the five year period, except for expenditure linked to contractual obligations. Areas of funding pressures which are linked to contractual obligations are as follows: (a) Office accommodation (b) Escalations linked to contracts for security contracts, cleaning services (c) Substantial increases in municipal services rates and vehicle fuel. Only two (2%) of the budget has been allocated to capital expenditure. This is not adequate to replace assets as and when they fall due. Legal Aid SA has implemented measures to extend the lifespan of the assets taking into account the current budget constraints. The Budget sets out additional allocations of R19.3 million in 2014/15, with a carry through funding of R21.1 million in 2015/16, R22.2 million in 2016/17 and R23.3 million in 2017/18 for the case backlog project relating to conversion of temporary appointments to permanent appointments. In 2014/15 this funding was used to convert 39 posts from temporary to permanent appointments. The funding now forms part of the baseline allocation. Additional allocation to Legal Aid SA's baseline was also confirmed for increase in legal capacity relating to Department of Justice and Correctional Services court expansion programme as follows, R18 million in 2015/16, R20 million in 2016/17 and R22 million in 2017/18. The increase in legal capacity will have a positive impact on Legal Aid SA performance indicators as it will result in a wider court coverage and service delivery. 64

65 Budget IX. Staff trends over the MTEF period POST CATEGORY Legal professionals (incl paralegals 2012/ / 2014 Audited outcomes (filled posts) (against staff establishment) 2014/2015 (current) Filled 31 March 2015 Vacant 31 March / / / / / 2020 Medium Term estimates (approved staff establishment) 2,029 2,039 2, ,319 2,319 2,319 2,319 2,319 Non-legal staff Total recruited staff Staff March pa Includes new posts (note iii) Staff recruitment 2,576 2,586 2, ,694 2,707 2,797 2,888 2,888 2,888 2,888 2, % 95.5% 94% > 96% > 96% > 96% > 96% > 96% 65

66 Budget IX. Staff trends over the MTEF period -continued Notes on staff trends i. Legal Aid SA was in the 2014/15 FY having an approved staff establishment of 2803 of which 6 (six) vacant positions have since been abolished due to operational requirements. The total positions filled and funded were thus in 2014/15, 2,797posts. ii. As at end March 2015 there were 2,071 (79%) (filled) legal practitioners including paralegals and 548 non-legal staff making it a total of 2,619 (94%) recruited staff. Staff turn over as at 31 March is 5.93%. (a) It is noted that 69 posts (of the 90 new posts) of 2014/15 were added to the staff establishment only in January 2015 due to uncertainty of budget cuts. This resulted in a lower 94% recruitment rate at 31 March iii. The additional funding relating to the case backlog project and court expansion programs respectively as stated above has enabled Legal Aid SA to increase its legal capacity as follows (a) Case backlog funding was utilised to create 96 new permanent posts. 13 of these positions were administrative positions, while 83 were legal positions. About 90 posts of the 96 were filled in the 2014/15. The case backlog top up funding available in the 2015/16 will create an additional 33 permanent legal posts (approximated). (b) Additional new allocation from NT for court expansion program will be utilised to create approximately forty two (42) new permanent legal practitioner posts to service new courts (c) Additional funding of R5million as confirmed by the NT Allocation letter November 2012 will be utilised to create approximately 10 permanent legal posts. iv. The staff establishment is expected to increase from 2,797 to 2,888 posts 66

67 Budget X. Programmes requiring additional capacity Programme Total new staff Funding Required 2015/16 1 Increasing criminal capacity 143 R Increasing Civil Capacity 31 R Expansion of National Footprint 11 R TOTAL 185 R Notes It is noted that due to the economic recession additional funds are not available for any new programmes. The programmes requiring additional funds are included to indicate the gaps in the delivery programmes which will remain in the context of the recession 67

68 Budget X. Programme requiring increased criminal capacity Increase in criminal capacity o o o o o o Our current capacity at both District and Regional Courts is limited, such that we are not able to cover courts for every day of the week. We also do not have any relief capacity available to substitute for practitioners who are absent from work for any reason. This causes courts not to function effectively on days when our legal aid practitioners are not present at court. This also impacts negatively on clients whose cases are delayed due to the limited availability of legal aid practitioners. Our proposal seeks to increase DC coverage from 90% to 95% and RC coverage from 99% to 105%. This would ensure improved coverage of our courts, as well as allow us to implement a court relief programme on a limited scale. 68

69 Budget Programme requiring increased civil capacity Increase in civil capacity o o o o Our current civil capacity is limited, such that it consisted of about 12% of total legal aid matters (criminal matters remain dominant). Civil demand exceeds the current capacity a number of Justice Centres despite limiting civil legal services to priority cases as per the LAG. Civil Supervisory capacity is critical to improve and maintain the quality of civil services at our offices although currently 13 offices require such civil supervisory or additional supervisory capacity. This impacts negatively on clients who cannot be assisted or whose cases are delayed due to the limited availability of civil legal aid practitioners. o Our proposal seeks to increase civil legal aid practitioner capacity by 18 Professional Attorneys and 13 Civil Supervisory Attorneys positions. o This would ensure the progressive increase in access to legal aid in civil matters and alleviate to a limited extent civil capacity constraints. 69

70 Budget X. Programme requiring Expansion of National Footprint Expansion of National Footprint o o o o Due to budget constraints and tough economic conditions, the number of our Justice Centres and Satellite Offices have not increased for the past 5 years. This has had a negative impact on increasing access by clients to our services. It also results in clients being required to travel longer distances to our offices, as well as our practitioners travelling longer distances to attend to certain courts. Our review of our national footprint indicates the following needs: to convert 6 existing satellite offices to full Justice Centres; to an additional 4 satellite offices and To establish 1 additional Justice Centre. 70

71 Concluding Comments 71

72 Concluding Comments Within the context of an economic recession and budget constraints Legal Aid SA has in it SP, APP and Budget provided for Budget cuts from NT in 2015/16 and 2016/17 which will be funded from cash reserves in the short term it being noted that the cash reserves are required to meet liabilities and that managing the current assets : current liabilities ratio will allow these to be utilised in the short term; these cuts will therefore not impact negatively on any service delivery; Additional posts for the court expansion programme (additional R18million in 2015/16) linked to the appointment of new magistrates Additional civil capacity linked to funds (R5million) from the 2012 NT Allocation letter The conversion of approximately half of the backlog courts to permanent courts and funding for the remaining backlog courts provided for in the MTEF period. Legal aid service delivery will therefore continue as per the past period except for the addition of the new posts for court expansion and civil legal aid; The organisation is geared to deliver on its Strategic Plan and has an approved Enterprise Risk Management Plan in place to mitigate risks identified and emerging Legal Aid SA is committed to building a sustainable organisation, with a capacity for continuance. The organisation has also developed a Sustainability Strategy which positions it to ensure that sustainability is embedded into the business practice and to promote sustainable growth through economic, social and environmental value creation. We see our mandate as the delivery of legal aid services to individual clients being key to increasing access to justice for the poor and vulnerable in a sustainable manner thus contributing to a more equitable society. 72