1.1 OBSERVATIONS 1.1.1 The Auditor-General's assertion that, had the DCS been audited on its pre-determined service delivery objectives, it would have received an adverse opinion, is noted with concern. This assertion echoes the Committee's own evaluation of centre-level service-delivery in particular. 1.1.2 Unlike previous years, the Auditor-General did not note overcrowding in correctional centres as a matter of emphasis. This is welcomed, particularly as overcrowding can largely be attributed to the large numbers of remand detainees in the DCS' care. The time a person spends incarcerated without having been sentenced is largely dependent on the speed with which matters are investigated, and court proceedings completed. Prison overcrowding can therefore not be reduced without dedicated efforts from both the departments of Justice and Constitutional Development, and Police. 1.1.3 Despite the DCS' persistent qualifications owing to poor performance and financial management, and despite SCOPA recommendations, the DCS has failed to strengthen its internal audit capacity. This has without a doubt contributed to its persistent audit qualification. 1.1.4 Both stakeholders and the Committee have raised concerns about DCS senior managers' capacity to manage. Regions are not adequately held to account, and there appears to be no effective system for managing their performance. Senior managers appear to be completely unaware of what happens at centre-level, as they rely solely on sporadic, and often inaccurate reports received from regions. 1.1.5 The Committee realises that the "White Paper" is to be implemented over a 15-year period, and therefore does not expect radical improvements to occur overnight. However, the fact that there appears to be little or no improvement in the DCS' performance, and even more disturbingly, little if any commitment to such improvements, is a matter of grave concern. 6. The Committee has reported its extreme concern that despite the rehabilitation and social reintegration objectives contained in the "White Paper", and echoed in the DCS' core mandate, Development, Care and Social Reintegration programmes remain underfunded. The Committee undertook to interact with the DCS to monitor whether there is synergy between strategic objectives and budget allocation. The 2010/11 budget did not reflect such synergy, and thus it is difficult to believe the DCS' claim that it is placing rehabilitation at the centre of its activities.