Select Committee MTEF Budget Allocation Presentation 1 Introduction to Central Services Branch Building a caring correctional system that truly belongs

Select Committee MTEF Budget Allocation Presentation

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Introduction to Central Services BranchBuilding a caring correctional system that truly belongs to all

SELECT COMMITTEE MTEF BUDGET ALLOCATION PRESENTATION


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CONTENTS

1. Budget allocation over the MTEF period: Programme Administration

2. Budget allocation over the MTEF period: Programme Security

3. Budget allocation over the MTEF period: Programme Corrections

4. Budget allocation over the MTEF period: Programme Care

5. Budget allocation over the MTEF period: Programme Development

6. Budget allocation over the MTEF period: Programme Social Reintegration

7. Budget allocation over the MTEF period: Programme Facilities

8. Cost drivers taken into account in the allocation of budget

ENE BUDGET ALLOCATION


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CONTENTS9. Provision of vacancy rate

10. Amounts of budget allocation per programme over the MTEF period

11. Amounts of budget allocation per GFS Economic Classification over the MTEF period

12. Additional amounts allocated to the budget baseline over the MTEF period

13. Devolved and Earmarked funds as included in the total budget allocation over the MTEF

period

14. Efficiency Gain Savings (Budget reduction)

15. Steps taken to improve financial management

15.1. Details of measures put in place to improve compliance with the financial management

principles

ENE BUDGET ALLOCATION


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1. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME ADMINISTRATION

Programme Administration: Purpose

• The purpose of this programme is to provide the administrative, management,

financial, ICT. Research, policy co-ordination and good governance support

functions necessary for all service delivery by the department and in support of

functions of the ministry


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Programme Administration: Allocation

• The increase of budget from R2.8 billion; R3.1 billion; R3.3 billion and R3.6 billion

respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 financial years is

mainly due to the following:

– Allocation for Master Information System Plan (MISP) project

– Adjusted provision additional amount allocated for accommodation charges


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Programme Administration: Allocation (continues)

• The decline in Management Programme Administration sub-programme is due to

the efficiency gains savings budget reduction applied by National Treasury over the

MTEF period.


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2. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME SECURITY

Programme Security: Purpose

• The purpose of this programme is to provides for activities aimed at ensuring the

provision of safe and healthy conditions for all incarcerated persons, while

providing protection for personnel and the public


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Programme Security: Allocation

• The increase in budget allocation from R3.4 billion; R3.8 billion, R4.1 billion and

R4.4 billion respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 is mainly

due to the following:

– Improvement of security in prisons

– Additional allocation of personnel costs for New Kimberley CC

– Additional allocation for the implementation of PSCBC Resolution 1 of 2007


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Programme Security: Allocation (continues)

– Amount allocated to compensate the department for inflation adjustment

allocated in this programme.

– Additional allocation to fund for purchases and installation of security equipment

• The activities of this programme are labour intensive and personnel budget

accounts for approximately 91,7% of the budget allocated in this programme over

the MTEF period.


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3. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME CORRECTIONS

Programme Corrections: Purpose

• The purpose of this programme is to provide needs based correctional sentence

plans and interventions, based on an assessment of the security and criminal

profile of individuals, targeting all elements associated with offending behavior,

and focusing on the offence for which a person is sentenced to correctional

supervision, remanded in a correctional centre or paroled.


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Programme Corrections: Allocation

• The increase in budget allocation from R1,064 billion; R1.1 billion and to R1.2

billion respectively over the 2008/09; 2009/10 and 2010/11 is mainly due to the

following reasons:

– Additional allocations to the baseline made in 2005/06 to implement White

Paper on Corrections projects such as risk assessment and profiling of

offenders, Case Management Committees, training of staff members on unit

management and phased implementation of Offender Rehabilitation Path

(ORP) to ensure the effective rehabilitation of offenders


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Programme Corrections: Allocation (continues)

– Establishment of parole boards and correctional supervision also accounts for the

growth in the budget of machinery and equipment.

– Allocation of supervisory personnel budget also accounts for the growth of budget in

this programme.

• The decline of budget from R1,091 billion in 2007/08 to R1,064 in 2008/09 is due to funds

shifted to the Programmes Development and Care to finance the approved White Paper

projects implementation in 2007/08 financial year.


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4. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME CARE

Programme Care: Purpose

• The purpose of this programme is to provide needs based care programmes and

services aimed at maintaining the personal wellbeing of incarcerated persons in the

department’s care.


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Programme Care: Allocation

• The increase in budget allocation from R1,2 billion; R1,3 billion; R1.5 billion to R1.6

billion respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 is mainly due

to the following reasons:

– Implementation of three meal system per day

– Provision of additional remuneration of Health care workers


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Programme Care: Allocation (continues)

– Progressive Implementation of comprehensive HIV & AIDS programme

nationally

– Donor funding received from United States President’s emergency plan for

AIDS relief allocated for HIV & AIDS and syphilis prevalence survey among

inmates and staff.


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5. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME DEVELOPMENT

Programme Development: Purpose

• The purpose of this programme is to provide needs based personal development

programmes and services to all offenders.

• Personal development of offenders provides programmes and services aimed at

developing competencies by providing opportunities for skills and social

development, including technical training, recreation, sports, education and the

operation of prison farms and production workshops


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5. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME DEVELOPMENT

Programme Development: Allocation

• The increase in budget allocation from R394 million; R397million; R476 million to

R509 million respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 is mainly

due to the following reasons:

– The department effort to put rehabilitation of offenders at the centre of its

activities which includes amongst others, training of offenders to ensure their

skills and social development in various trades aspects.


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6. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME SOCIAL REINTEGRATION

Programme Social Reintegration: Purpose

• The purpose of this programme is to provide services focused on preparation of

offender’s release and their effective supervision after release on parole and

correctional supervision as well as direct sentences to correctional supervision and

facilitating their reintegration into their communities.

• Community liaison provides for all services which prepare offenders for completing

their sentences to facilitate their social acceptance and effective reintegration of

offenders into their communities


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6. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME SOCIAL REINTEGRATION

Programme Social Reintegration: Allocation

• The increase in budget allocation trend from R371 million; R386 million; R411 million

to R442 million respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 is mainly


– Phased implementation of the social reintegration action plan which is meant to

create a common understanding of social reintegration among all stakeholders,

supported by systems and processes for the effective monitoring and supervision

of parolees and probationers and

– To promote the use of community based sentence options to deal with offenders.


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7. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME FACILITIES

Programme Facilities: Purpose

• The purpose of this programme is to ensure that physical infrastructure supports

safe and secure custody, humane incarceration conditions, and the provision of

corrective services, care, development and general administration.


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Programme Facilities: Allocation

• The increase of budget from R1.3 billion in 2006/07 to R1.9 billion in 2007/08 is

mostly due to the R513 million roll-over of funds approved to fund the construction

of Kimberley Correctional Centre project and

• the latter will also account for the subsequent decrease of budget from R1.9

billion in 2007/08 to R1.4 billion in 2008/09.


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Programme Facilities: Allocation (continues)

• The general increase of budget allocation with exclusion of an amount of R513

million roll-over of funds approved in 2007/08 financial year as mentioned-above,

from R1.40 billion(R1.916 billion - R513 million); R1.44 billion; R1.7 billion to R3.4

billion respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 is mainly


– Additional allocation to fund for the operation of five planned PPP

Correctional facilities which will provide additional 15000 bed spaces


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Programme Facilities: Allocation (continues)

– Funding provision for the construction of New Kimberley Correctional Centre

to provide additional 3000 bed spaces on completion in February 2009.

– Increase in the capital budget for upgrading and renovations of the existing

facilities over the medium term which will create additional 2180 bed spaces


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8. COST DRIVERS TAKEN INTO ACCOUNT IN THE ALLOCATION OF BUDGET

• Key Cost Drivers are as follows;

– Personnel numbers.

– Inmates including awaiting trial detainee totals.

– Supervision Cases and Parolees

– Implementation of White Paper projects


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8. COST DRIVERS TAKEN INTO ACCOUNT IN THE ALLOCATION OF BUDGET (Continued)

Regions

Daily Average Super. Case P opul. (DASCP ) 2007/08

P ro Rata Fin DASCP 2008/09

Daily Aver. Inmate P opul. (DAIP ) 2007/08

P ro Rata Fin. DAIP 2008/09

Gauteng 12,866 12,619 41,778 42,386Western Cape 11,785 11,559 25,845 26,221Nw/Mp/Lp 12,166 11,933 23,911 24,259Kwazulu/Natal 10,875 10,666 25,098 25,463Eastern Cape 6,784 6,654 18,717 18,989Fs/Nc 7,615 7,469 20,877 21,181TOTAL 62,091 60,900 156,226 158,500


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9. PROVISION OF VACANCY RATE

Financed 45 674 National Treasury Allocation Letter 2006/07

Kimberley 817 New Kimberley Correctional Facility (R 50 000 for allocated for 2008/09 financial year

Sub-total 46 491

Minus 5% Vacancy Rate

2 325

Total 44 166

The vacancy rate was calculated as follows:


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10. AMOUNTS OF BUDGET ALLOCATION PER PROGRAMME OVER THE MTEF PERIOD

Programme 2007/08R’000

2008/09R’000

2009/10R’000

2010/11R’000

Administration 2 874 543 3 111 582 3 373 333 3 605 016

Security 3 444 847 3 873 242 4 116 254 4 433 021

Corrections 1 091 580 1 064 678 1 125 249 1 211 717

Care 1 291 561 1 394 735 1 457 670 1 601 463

Development 394 348 396 615 476 337 509 011

Social Reintegration

371 356 386 538 411 320 442 021

Facilities 1 916 174 1 444 444 1 692 301 3 448 151

Total 11 384 409 11 671 834 12 652 464 15 250 400


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11. AMOUNTS OF BUDGET ALLOCATION PER GFS ECONOMIC CLASSIFICATION OVER THE MTEF PERIOD

GFS Economic Classification

2007/08R’000

2008/09R’000

2009/10R’000

2010/11R’000

Compensation of employees

6 761 950 7 144 145 7 580 571 8 175 829

Goods and Services 3 094 717 3 377 210 3 693 106 4 739 849

Interest and rent on land 50 52 57 60

Transfers and subsidies 32 013 34 419 36 907 36 885

Payments for capital assets

1 495 679 1 116 008 1 341 823 2 297 777

Total 11 384 409 11 671 834 12 652 464 15 250 400


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12. ADDITIONAL AMOUNTS ALLOCATED INTO THE BUDGET BASELINE OVER THE MTEF PERIOD

2008/09R’000

2009/10R’000

2010/11R’000

Departmental Budget Baseline 11 365 798 12 267 765 13 045 504

Additional funds allocated to budget baselinePersonnel costs New Kimberley CC 50 000 60 000 190 000

Provision for PPP Prison space 0 0 1 653 000

Res1 of 2007: Comp. of Personnel 165 243 194 217 203 928

Accommodation charges 45 970 68 948 94 021

Comp. of Personnel Inflation adj. 58 457 97 423 121 226

Non Personnel Inflation adjustment 32 366 36 911 57 653

Adjustments to baseline (Efficiency Savings) (46 000) (72 800) (114 932)

Total 11 671 834 12 652 464 15 250 400


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13. DEVOLVED AND EARMARKED FUNDS AS INCLUDED INTO THE TOTAL BUDGET ALLOCATION OVER THE MTEF

PERIOD

2008/09R’000

2009/10R’000

2010/11R’000

Devolution of funds from Public Works

849 225 1 002 778 1 144 385

Specifically and exclusively appropriated: Capital Works

679 861 897 902 913 529


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14. EFFICIENCY GAIN SAVINGS (BUDGET REDUCTION

Efficiency Gain savings (budget reduction) was applied to the following

items of expenditure:

unnecessary travel and subsistence costs;

misplaced marketing and communication initiatives;

entertainment costs; and

Weakness in supply chain management.


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14. EFFICIENCY GAINS SAVINGS (BUDGET REDUCTION)

Administration 2008/09 2009/10 2010/11Goods and services 46,000 72,800 114,932 Communication 5,000 Consultants - - 3,710 Travel and Subsistence 25,000 14,000 15,626 Protective clothing 5,000 - - Other 11,000 58,800 95,596 Total 46,000 72,800 114,932


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15. STEPS TAKEN TO IMPROVE FINANCIAL MANAGEMENT

• Quarterly Budget Committee (Executive management) meetings

• Monthly Budget steering committee meetings

• Monthly financial meetings at all levels

• Budget blocking

• In Year Monitoring reporting


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Certification of monthly financial management meetings

Regional Commissioners, Area Commissioners, Heads of

Correctional Centres and Heads of various Branches are

required to certify on the six monthly basis that financial

management meetings were held within their areas of

responsibilities.

Discussions of budget and expenditure is done at the lowest

item expenditure level (posting level)

15.1 DETAILS OF MEASURES PUT IN PLACE TO IMPROVE COMPLIANCE WITH THE FINANCIAL

MANAGEMENT PRINCIPLES


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Certification of monthly financial management meetings (Continue)

In order to determine proper reasons for variances between

budget and expenditure on each programme and GFS economic

classification item.

The discussions and resolutions consist of measures which

have been put in place to ensure that expenditure is properly

managed to avoid any possible over or under-spending of

budget allocated.




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Monthly financial management meetings with the Regional Heads of

Finance and Supply Chain Management

Monthly financial management meetings are being held to

discuss financial management problems which regions are

experiencing and also to find common solutions to resolve

them. This allows Head Office and Regional Financial Managers to

share information regarding the successes and to replicate

these successes to the regions which still require

improvements.




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Monthly financial management meetings with the Regional Heads of

Finance and Supply Chain Management (Continue)

Enable the Regional Financial Managers to account to Head

Office Managers in terms of how they are managing finances in

their regions.

Head Office managers are able to provide solutions to the

problems raised from regions for implementation.




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Financial policies and procedures

Head Office develops and distributes the approved financial

policies and procedures to the regions, management areas and

correctional centres for implementation and

to ensure that there is uniform financial management practices

and

that the identified gaps in the system are closed.




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Financial management training

Financial management trainings are being provided to the

regions, management areas and correctional centres

in order to capacitate them to manage their finances properly in

line with the requirements of the Public Financial Management

Act.




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Monthly In year monitoring reporting of revenue, budget and

expenditure

Regional Commissioners, Area Commissioners, Heads of

Branches and Heads of Correctional Centres do submit their

monthly In Year Monitoring reports in accordance with their

level of accountability.




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Monthly In year monitoring reporting of revenue, budget and

expenditure (Continue)

The In year monitoring reporting assist the department with the

following:

Proper management of budget, expenditure and revenue in

order to prevent any under or overspending of budget and

Minimize the risk that the department runs into the cash

flow problems.




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Committees and forums established to monitor the financial

management issues amongst other issues

Audit Committee

Budget Steering Committee

National Budget Committee

Regional Budget Committees




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Committees and forums established to monitor the financial

management issues amongst other issues (Continue)

Management Coordinating Committee

Extended Management Coordinating Committee

Regional Commissioners forum




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Budget Blocking

Budget blocking was implemented on BAS financial system as

one of the mechanisms to improve financial management and

to assist the department in achievement of the following:

Proper allocation and spending of budget and

to minimize the risk of unauthorized expenditure.




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THANK YOU

Renewing our Pledge:A National Partnership to Correct, Rehabilitate and Reintegrate Offenders for a safer and secure South Africa

Documents

Select Committee MTEF Budget Allocation Presentation 1 Introduction to Central Services Branch Building a caring correctional system that truly belongs