Policy and Procedure for the Handling of Complaints against the AG

1
Policy and Procedure for the Handling of
Complaints against the AG

• Consultation with the Standing Committee on the
  Auditor-General
• 9 April 2008
• Wandile Tutani

2
Reputation promise

• The Auditor-General has a constitutional mandate
  and, as the Supreme Audit Institution (SAI) of
  South Africa, it exists to strengthen our
  countrys democracy by enabling oversight,
  accountability and governance in the public
  sector, thereby building public confidence.

3
BACKGROUND

• Complaints Policy and Procedure (CPP) drafted in
  2005.
• Exco approved as interim tool until establishment
  of SCoAG.
• Exco will implement as final CPP once consulted
  with SCoAG.

4
Legal and professional standards on complaints

• Sec 13(1)(c) of the PAA
• Requires establishment of CPP.
• Limits application to sec 11 audits.
• Requires consultation with SCoAG.
• Item 89 of SAQCS 1 requires assurance that
• Failure to comply with standards and law is
  addressed.
• Non-compliance with system of quality control is
  addressed.

5
Nature of complaints

• Only complaints directed at
• ? AG in official or personal capacity.
• ? Employees of the AG.
• ? Authorised auditors conducting audits on
  behalf of AG.
• Any other form of complaint is excluded (i.e.
  protected disclosures made to the AG).

6
Sources of complaints

• Auditees of the AG.
• Any other public or private body.
• Individual members of the public.
• AG employees and authorised auditors.

7
Categories of complaints

1. Complaints that fall outside the scope of the
   subject matter.
2. Complaints pertaining to operational matters
   during execution of sec 11 audits.
3. Complaints pertaining to conduct of AG employees
   or authorised auditors.
4. Complaints pertaining to the person of the AG.

8
Point of entry the Complaints Manager

• All complaints must be addressed to the
  Complaints Manager.
• Complaints Manager must be at least on a manager
  level.
• Complaints Manager situated in Governance.
• Compliance Manager in the Corporate Secretariat
  fulfils the role of the Complaints Manager.

9
Functions of the Complaints Manager

• Ensures proper execution of the CPP in the AG.
• Receives all complaints directed at the AG.
• Develops and maintains complaints register and
  tracking system for complaints.
• Categorises complaints received.
• Notifies Complaints Committee of receipt of
  complaints.
• Directs complaints to relevant points of
  authority.
• Ensures adherence to time periods specified in
  CPP.

10
Functions of Complaints Manager contd

• Makes referrals to Complaints Committee.
• Communicates resolution to complainants.
• Keeps record of outcome of all complaints
  received.
• Provides a secretariat function to the Complaints
  Committee.
• Provides monthly reports on status quo to
  Complaints Committee.

11
Monthly report to Complaints Committee

• Complaints Manager must compile a monthly report.
• Report addressed to the chairperson of the
  Committee.
• Report content
• ? Complaints rejected and reasons for rejection.
• ? Complaints not resolved by relevant CE.
• ? Complaints that require more time to resolve.
• ? All category 4 complaints.

12
Report to Complaints Committee - contd

• ? Category 3 complaint if subject of complaint
  is an employee higher than a BE.
• ? Any other matter that requires the attention
  of the Complaints Committee.

13
The Complaints Committee

• Committee consists of 3 members
• ? 2 members of Exco.
• ? 1 external, independent member within the
  industry.
• Members are appointed by the AG.
• Complaints Committee meets at least quarterly.
• Receives monthly report from Complaints Manager.

14
Powers of the Complaints Committee

• Issues directives necessary to resolve
  complaints.
• May instruct employees or authorised auditors to
  appear before it and to provide evidence.
• May request records under control of employees or
  authorised auditors.
• May contract expertise necessary to perform its
  functions.

15
Format of complaints

• Directed to the Complaints Manager.
• Must be in writing.
• Recorded in the form of an affidavit or
  affirmation.
• Supporting documentation must accompany
  complaint.
• Complaints Manager must reject complaints that do
  not comply with the prescribed format.
• Anonymous complaints must be rejected.

16
Resolution of category 1 complaints

• Complaints Manager receives complaint.
• Acknowledges receipt (5 days).
• Complaints Manager rejects complaint.
• Notification to Complaints Committee for
  ratification.
• Notifies complainant of rejection and of appeal
  procedure (5 days).

17
Resolution of category 2 complaints

• Receipt of complaint.
• Responsible CE to investigate complaint (20
  days).
• Committee may give extension if insufficient
  time.
• If CE cannot resolve, he/she declares a dispute.
• Complaints Committee may
• ? Ratify the dispute.
• ? Resolve the dispute.
• Complaints manager notifies complainant of
  outcome and appeal process (5 days).

18
Resolution of category 3 complaints

• Complaints Manager refers complaint to Legal
  Services for opinion (misconduct or criminal
  conduct).
• Legal Services submits complaint and opinion to
  responsible CE to decide on further investigation
  and action.
• Higher than BE directs submission to Committee.
• Member of Committee implicated AG to
  temporarily replace with another CE.
• Authorised auditor CE to refer to private firm
  for action.

19
Resolution of category 3 complaints contd

• CE must report on status to Complaints Manager
  (20 days).
• Complaints Manager submits to Committee for
  ratification or amendment.
• Notification to complainant of action taken and
  outcome thereof (5 days).
• Detail of investigation not disclosed to
  complainant.

20
Resolution of category 4 complaints

• Complaints Manager submits directly to Complaints
  Committee.
• Within 5 days of receipt, Committee must
• ? submit complaint to AG for comment.
• ? submit to SCoAG.
• Notify complainant of referral to SCoAG (5 days).
• AG prepares written response to complaint and
  proposed resolution for submission to SCoAG.

21
Resolution of category 4 complaints contd

• SCoAG takes final decision with regard to
  complaint.
• SCoAG notifies Complaints Manager of decision.
• Complaints Manager notifies complainant of
  outcome (5 days).

22
Appeal

• Appeal to AG only applicable to categories 1, 2
  and 3 complaints.
• Decision of AG is final.
• To be submitted to Complaints Manager in the form
  of a notice of appeal.
• Within 30 days of notification of outcome.
• Notice of appeal must state
• ? appeal against whole or part of finding.
• ? grounds for appeal.

23
Appeal contd

• Acknowledgement of receipt within 7 days.
• AG has 30 days to consider and make final
  decision.
• The AG may
• ? Dismiss the appeal.
• ? Instruct/direct on how to resolve the
  complaint.
• ? Refer back in event of procedural flaws.
• Complaints Manager notifies complainant of
  outcome.

24
Reporting on complaints in annual report

• Number of complaints received.
• Number of complaints resolved.
• Number of complaints pending.
• Breakdown of categories of complaints.
• Number of disputes declared.
• Number of appeals received.
• Breakdown of successful/unsuccessful appeals.

25
QUESTIONS

• QUESTIONS?