SUMMARY OF THE IPID 4 TH AND 1 ST QUARTER REPORTS PC ON POLICE THEMBANI MBADLANYANA:

1. SUMMARY OF THE IPID 4TH AND 1ST QUARTER REPORTS PC ON POLICE THEMBANI MBADLANYANA: 10 SEPTEMBER 2013

2. IPID 4th QUARTER REPORT FOR 2012/13 FINANCIAL YEAR • BUDGET ALLOCATION: 2012/13 • R196.961 million for 2012/13 - 28 per cent higher than 2011/12 • Programme allocation: • Programme 1: R92.850 million (versus R73.4 million 2011/12) • Programme 2: R98.755 million (versus R78.4 million 2011/12) • Programme 3: R5.356 million (versus R1.69 million for 2011/12) • SPENDING IN THE TWO FIRST QUARTERS: 2012/13 • First Quarter spending: 17 per cent only - far below the 25% benchmark. • Recurring pattern: i.e. 19% in 2011/12 and 17% in 2010/11 • Second Quarter spending : 38.2 per cent (R75.32 million)

3. ADJUSTED APPROPRIATION • R196.96 million increased by R937 thousand during the October 2012 adjustment period to R197.898 million- for higher remuneration costs • . • MAIN VIREMENT • Note: The PC on Police was told by IPID just before the adjustments were made that their budget for 2012/13 was misaligned and that they had too much money in Goods and services and too few funds in Compensation. The Committee thus supported this proposed adjustment with the understanding that IPID would fill vacant and funded posts. • IPID thus moved: • R6.681 million from Goods and services in Programme 1 to Compensation of employees in Programme 2. • R634 thousand from Goods and services in Programme 2 to Compensation of employees in Programme 2. • Resulted in higher allocations for Programme 2: Investigation and Information Management and lower allocations for Programme 1: Administration. • The higher allocations in Programme 2: Investigation and Information Management resided in the Compensation of employee line item and were to be used to fund vacant posts in this critical core business programme.

4. SPENDING IN THE THIRD QUARTER: 2012/13 • 60.1 per cent of the adjusted appropriation was spent • Under spending in all Programmes: • - Programme 1: 65 per cent • - Programme 2: 57.1 per cent • - Programme 3: 39.8 per cent • Despite removal of R6.681 million from Goods and services, spending in Goods and services was still very low at only 54.4 per cent • Compensation of employees spending was better (but still low) at 66.6 per cent. • Spending on payments for Machinery and equipment was exceptionally low at only 4.4 per cent • Of serious concern was the fact that, by the end of December 2012, only 299 of 344 posts were filled, which resulted in an overall vacancy rate of 13.1 per cent. Critical vacancies were for investigators and senior management.

5. FOURTH QUARTER SPENDING: 2012/13 FINANCIAL YEAR • Only 86.6 per cent of the allocated budget was spent by the end of the Fourth Quarter ended 31 March 2013. • NB!! This is in contrast to the total expenditure for 2011/12 of 100 per cent of the 2011/12 adjusted appropriation.

6. All Programmes underspent by year end. • Programme 1: 93.57 per cent • Programme 2: 82.53 per cent • Programme 3: 55.99 per cent

7. IMPORTANT HIGHLIGHTS OF THE FOURTH QUARTER 2012/13 • Despite 27 per cent spending in the Fourth Quarter, only spent 86.6 per cent of its adjusted allocationfor 2012/13. • During Fourth Quarter, IPID managed to spend R52. 459 million (27 per cent expenditure for that Quarter). • Despite moving R7.2 million out of Goods and services- under spending still occurred (only 81.3 per cent spent)). • End of March 2013 out of a total of 347 posts, only 302 posts were filled thus reflecting 45 vacant posts (i.e. a vacancy rate of 13 per cent). • Misalignment of the 2012/13 budget allocation (too much funds for Goods and services and too few funds for Compensation of employees) set the tone for very poor spending during the 2012/13 financial year. • Of concern is that over R9 million rand was not spent by the end of the Fourth Quarter for Compensation of employees pointing to a clear problem with filling of vacant posts by the Directorate. Why were funds shifted if they could not be spent?

8. IPID 1st QUARTER REPORT FOR 2013/14 FINANCIAL YEAR • BUDGET ALLOCATION • R216.991 million for 2013/14 • Programme allocation: • - Programme 2: 57 per cent of total budget • - Bulk of the 2013/14 budget allocated to Compensation of employees (61 per cent) • R132.423 million (Compensation of employees) and R81.759 million (Goods and services). • In terms of Programme structure, R88.446 million was allocated to Programme 1: Administration; R124.295 million to Programme 2: Investigation and Information Management; and R4.250 million to Programme 3: Legal Services.

9. OVERALL SPENDING IN THE FIRST QUARTER: 2013/14 • Only R41.5 million (19.1 per cent) spent by the end of the First Quarter of 2013/14 • This was 5.9 per cent lower than planned • Well below the approved benchmark set by Treasury (25 per cent). • As highlighted in the table above, lower than planned spending was visible in: • - Programme 2: 17 per cent • - Programme 1: 21.9 per cent • - Programme 3: 25.5 per cent

10. SPENDING PER PROGRAMME IN THE FIRST QUARTER: 2013/14 • Programme 1: Administration • Spent R19.3 million (or 21.9 per cent) of the R88.4 million for this Programme • Economic classification - considerable higher than planned expenditure occurred on machinery and equipment and lower than planned expenditure occurred on; compensation of employees and goods and services • Programme 2: Investigation and Information Management • Spent R21. Million (or 17 per cent) of the R124.2 million appropriated for this programme for the year as a whole was spent. • Economic classification- lower than planned spending occurred on compensation of employees (17.6 per cent); goods and services (15 per cent) and machinery and equipment. And higher than planned spending occurred on Transfers and subsidies • Programme 3: Legal Services • Spent R1.8 million (or 25.5 per cent) of the R4. 2 million appropriated for this programme for the year as a whole was spent. • Marginally higher than planned spending occurred on this programme (25.5 per cent against a projected spending of 24.9 per cent). • Economic classification- lower than planned spending occurred on goods and services and higher than planned spending was visible on compensation of employees (25.4 per cent) and Machinery and equipment (232.1 per cent)

11. IMPORTANT HIGHLIGHTS OF THE FIRST QUARTER: 201/14 • IPID had spent R41.5 million (only 19.1 per cent). • Lower than planned spending was visible in all Programmes but was most notable in Investigation and Information Management. NB!! This is a key concern as this Programme contains the core business of IPID. • In terms of economic classification, lower than planned expenditure occurred on Compensation of employees and Goods and services, while higher than planned expenditure occurred on Machinery and equipment • A key concern is whether the budget remains incorrectly planned and misaligned. • Low First Quarter spending may be a result of the Goods and services budget still being too high. In addition, slow filling of vacant posts will result in under spending by the end of the financial year if these posts are not filled timeously. • The expenditure recorded at the end of the First Quarter of the 2013/14 financial year strongly resembles that of the previous financial year with almost similar spending trends. • Therefore, the Committee should remain mindful that there is a high probability that the under/over expenditure recorded in the First Quarter may persist throughout the year and lead to over/under expenditure in the last quarter of the 2013/14 financial year.

12. END OF THE PRESENTATION THANK YOU