National Consumer Tribunal Annual Report 2011/12 National Consumer Tribunal 2011-12 | Page 75

REPORT OF THE ACCOUNTING AUTHORITY
in the Tribunal requiring additional space for its operations. As a result, the lease costs in the
current year have increased significantly.
Consultants’ fees increased by 34%. The increase related to recruitment costs, finance and
accounting services, and legal consultants.
The recruitment fees are new costs that have been incurred in this financial year. This is
due to the fact that past recruitment processes within the Tribunal were identified as a risk
to the Tribunal being able to recruit appropriate candidates. A strategy was devised and
implemented to overcome this risk, resulting in the Tribunal incurring recruitment costs.
This resulted in a reduction of the vacancy rate from 38% to 28% for the year ending
31 March 2011.
Following a tender process, a new service provider was appointed in November 2010 to
provide the Tribunal with finance and accounting services. Due to the critical nature of this
function within the Tribunal, funds were utilised from the consultants’ budget to ensure
handover from the previous to the new incumbent.
The increase in the number of cases was the main driver in the increase in legal fees in
the 2010/2011 year. The legal fees were incurred in respect of assistance by the Tribunal’s
legal consultants for the processing of cases in periods of exceptionally high filing rates.
This option was used in place of an increase in the staffing structure. Towards the end of
the financial year, the Tribunal appointed students as a more cost-effective and sustainable
option to that of using law firms to handle periods of high demand.
The Tribunal increased spend on capital assets in the current year to R1 027 592 (2009/2010:
R684 770). Significant purchases of office furniture and equipment, computers and software
was made to ensure members of staff have the tools required for optimal performance.
It is recognised that the cost of compliance in the institution is still high in comparison
to its size and total revenue. The cost of compliance in respect of audits amounted to
R1 772 646 (2009/2010: R1 532 288). The critical risks identified have increased the scope
of the audits, which are conducted to ensure that the organisation has adequate controls in
place to mitigate the risks.
The Audit and Risk Committee (ARC) plays a pivotal role in overseeing and advising
management on key risk issues and ensuring that management implements strategic
interventions to address the risks. The ARC handles incidents of fraud and corruption. ARC
member costs’ increased due to their additional responsibilities and increased reporting
requirements.
There was a decrease in training, conferences and staff development costs, mainly as
a result of fewer events in this year’s business plan compared to the previous financial
year. The communications initiatives were more targeted in this year to ensure that key
stakeholders who use the services of the Tribunal are reached.
Annual Report 2011
national consumer tribunal | page 73