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NATIONAL ASSEMBLYÂ
QUESTION FOR WRITTEN REPLY
PARLIAMENTARY QUESTION NO.: 1226
DATE OF QUESTION: 15 APRIL 2011
1226.    Mr I M Ollis (DA) to ask the Minister of Justice and
Constitutional Development:
What measure has been put in place since the past yearâs Annual Report
to deal with the qualification by the Auditor-General in respect of
the management of third party funds?    Â
NW1366E
REPLY:-
I wish to inform the Honourable Member that my Department has strengthened
the financial management of Third Party Funds (TPF) through the appointment
of 1 Chief Director, 1 Director, 3 Deputy-Directors and 4 Assistant-
Directors (additional to the existing Director, Deputy-Director and
Assistant-Director). Â A further contract position of Director for Financial
System Design has been advertised and to strengthen regional financial
management, a further 45 positions are in the process of being filled. Â My
Department is also in the final stages of performing a thorough review of
staff required to perform this function at National, Regional and Court
levels, through a work study exercise.
My Department has also appointed a service provider
(PriceWaterhouseCoopers) to conclude the financial statements for TPF and
concurrently facilitate a skills transfer and provide technical assistance
in concluding the mid-year and year-end final statements. (The financial
statements for 2010/2011 are due by the end of September 2011.) Two-hundred
(200) officials (Financial and General Management Staff) have been
identified for dedicated training and skills development between June 2011
and September 2011.
A new, upgraded administrative and financial management system is in the
planning stage and will be developed in collaboration with SITA (State
Information Technology Agency). Control weaknesses in the current system
will be addressed in the new system. A formal application for approval of
the new system has been submitted to National Treasury as prescribed in the
National Treasury Regulations and such approval is awaited. Â Comprehensive
training will be initiated for personnel working in the TPF environment and
for those who will be operating the new system. Planned roll-out of the
newly developed system is April 2012 to ensure appropriate capacity
building, data clearing and data migration.
My Department, in order to reduce turnaround times, has further implemented
a decentralised EFT (Electronic Funds Transfer) functionality with
appropriate segregation of authority. In the courts where this system was
deployed, (Umlazi, Roodepoort, Upington, Worcester, etc), it resulted in a
substantial reduction in the payment cycle time. (There was, on average, a
5 day reduction.)