As part of our commitment to rehabilitation of offenders, the ...

5. Utilisation of donor funds (finance)
Funds allocated to the Department from the USA PEP-
FAR programme:
82 DCS Annual Report 2007/08
R’000
Allocation 5 916
Expenditure 5 027
Available 889
These funds were used on the following activities:
• Training of professional nurses in the Comprehensive
Management of HIV and AIDS.
• Training of professional staff in Voluntary Counselling
and Testing.
• Training of offenders in Peer Education.
• Procurement of equipment for 212 Correctional
health Facilities.
• Procurement of pharmacy equipment for 12 Correctional
Pharmacies.
• ARV sites.
• World AIDS Day celebrations.
6. Trading entities and public entities
The department has no trading entities.
7. Organisations to whom transfer payments
have been made
In accordance with the Skills Development Act (No. 97 of
1998), an amount of R3,474 million [R3,182 million] was
transferred to SASSETA during the year under review.
8. Public Private Partnerships (PPP)
There are two privately run facilities in the Department
operating under Asset Procurement and Operating Partnership
System (APOPS). They are Mangaung Maximum
Security Prison in Bloemfontein and Kutama-Sinthumule
Maximum Security Prison in Makhado. The Department
is planning to build five PPP facilities over the next three
years to increase its capacity.
9. Corporate governance arrangements
9.1 The risk management approach
The Department established the Risk Management
Committee (RMC) in 2002 and restructured it in 2003.
The RMC continue to manage identified risks under the
chairperson of Chief Deputy Commissioner: Operations
and Management Support. The RMC meets on a
quarterly basis to assess the level of risk and progress
on mitigation of risks.
9.2 Fraud prevention policies
The department has approved fraud policies and procedures.
In addition, the Accounting Officer has established
a Fraud Prevention Committee.
9.3 Effectiveness of internal audit and audit
committee
DCS has an internal audit unit which functions under the
control and direction of an audit committee. The internal
audit unit functions on a co-sourced basis, where
some of the work is contracted out. Currently there is
an approved establishment with 28 posts for the inhouse
staff, which includes two support posts. The staff
turnover situation of internal audit is volatile and this as
well as limited financial resources impacts on the internal
audit activity’s ability to perform optimally. A new head of
Internal Audit was appointed during the 2007/08 financial
year.
During the year under review, internal audit functioned
according to an approved charter and performed audits
which were approved on the annual work plan. Various
audits were conducted at Head Office, Regional Offices
as well as at Correctional Centres. Audit reports were
issued in this regard.
A private audit firm was appointed by National Treasury
to conduct a quality assessment on the Internal Audit activity.
The assessment results indicated that the Internal
Audit activity of the Department generally conforms to
the Institute of Internal Audit’s Standards for the Professional
Practice of Internal Auditing and Code of Ethics.
Jali Commission recommendations implementation
The final report of the Jali Commission of Inquiry was
received by the Department in March 2006. The Department
had to look into and analyze all the recommendations
and in the process compared the content
thereof with the developments that have taken place
since the commencement of the transformation process
within the Department which culminated in the drafting
and approval of the White Paper on Corrections by
the Cabinet in 2005. In the analysis process it emerged
that the Commission’s recommendations are basically
made up of two main categories, namely issues relating
to organizational systems and policies and misconduct
matters. The overall observation that was made from the
onset with regard to issues pertaining to organizational
systems and policies is the fact that the White Paper on
Corrections made provision for a good framework within
which the bulk of these recommendations would be
addressed on a medium to long term basis. Guided by
the solid foundation that was proactively laid through the
White Paper the Department has, since the receipt of the
Report, consciously put some effort into ensuring that
the implementation of all the recommendations receive