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QUARTERLY FINANCIAL AND ADMINISTRATIVE REPORT Portfolio Committee Presentation 26 August 2009

QUARTERLY FINANCIAL AND ADMINISTRATIVE REPORT Portfolio Committee Presentation 26 August 2009. CONTENTS. A. IN YEAR MONITORING REPORT FOR FIRST QUARTER AS AT 30 JUNE 2009 B. BELT-TIGHTENING MEASURES ADMINISTRATIVE REPORT – 1 st QUARTER DELIVERY ON OPERATIONAL PLANS D. OUTSOURCING

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QUARTERLY FINANCIAL AND ADMINISTRATIVE REPORT Portfolio Committee Presentation 26 August 2009

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  1. QUARTERLY FINANCIAL AND ADMINISTRATIVE REPORT Portfolio Committee Presentation 26 August 2009

  2. CONTENTS A.IN YEAR MONITORING REPORT FOR FIRST QUARTER AS AT 30 JUNE 2009 B. BELT-TIGHTENING MEASURES • ADMINISTRATIVE REPORT – 1st QUARTER DELIVERY ON OPERATIONAL PLANS D. OUTSOURCING E. CONCLUSION

  3. A. IN YEAR MONITORING REPORT FOR FIRST QUARTER AS AT 30 JUNE 2009

  4. NATIONAL STATE OF EXPENDITURE FOR YEAR TO DATE: 30 JUNE 2009

  5. COMMENTS ON NATIONAL STATE OF EXPENDITURE FOR YEAR TO DATE PER PROGRAMME: 30 JUNE 2009 • Final overall expenditure of Department as at 30 June 2009 was at 21.85% against spending plan of 22.62% (under-spending) • Actual spending of 23.17% against spending plan of 24.31% (under-spending) under Programme Administration is mainly due to low spending of funds allocated for MISP projects (RDOMS & EDRMS) • Actual spending of 23.83% against spending plan of 22.94% (over-spending) under Programme Security is mainly due to payments of overtime made to correctional officials in line with continuous implementation of PSCBC Resolution number 1 of 2007. implementation of 7-Day Establishment with effect from 1 July 2009 will result in reduction of overtime expenditure which used to be paid in line with 5-Day Work Week Establishment

  6. COMMENTS ON NATIONAL STATE OF EXPENDITURE FOR YEAR TO DATE PER PROGRAMME: 30 JUNE 2009 • Actual spending of 22.78% against spending plan of 24.02% (under-spending) under Programme Corrections is mainly due to low spending of funds allocated for purchases of Machinery & equipment due to ITC approval problems & delay in bidding process • Actual spending of 19.81% against spending plan of 23.68% (under-spending) under Programme Care is broadly due to relevant outstanding internal charges transactions to be cleared to this Programme in line with request for items & consumption thereof • Actual spending of 18.96% against spending plan of 23.20% (under-spending) under Programme Development is mainly due to low spending of funds allocated for purchases of Machinery & equipment due to ITC approval problems & delay in bidding process

  7. COMMENTS ON NATIONAL STATE OF EXPENDITURE FOR YEAR TO DATE PER PROGRAMME: 30 JUNE 2009 • Actual spending of 23.70% against spending plan of 21.79% (over-spending) under Programme Social Reintegration is mainly due to payments of overtime made to correctional officials in line with continuous implementation of PSCBC Resolution number 1 of 2007. implementation of 7-Day Establishment with effect from 1 July 2009 will result in reduction of overtime expenditure which used to be paid in line with 5-Day Work Week Establishment • Actual spending of 15.77% against spending plan of 16.65% (under-spending) under Programme Facilities is mainly due to low spending of funds allocated for capital works projects due to low & late billing from Department of Public Works for capital works projects completed

  8. COMMENTS ON NATIONAL STATE OF EXPENDITURE FOR YEAR TO DATE PER GFS CLASSIFICATION: 30 JUNE 2009 • Actual spending of 23.58% against spending plan of 23.54% (over-spending) on Compensation of Employees is mainly due to payments of overtime made to correctional officials in line with continuous implementation of PSCBC Resolution number 1 of 2007. implementation of 7-Day Establishment with effect from 1 July 2009 will result in reduction of overtime expenditure which used to be paid in line with 5-Day Work Week Establishment • Actual spending of 21.34% against spending plan of 23.39% (under-spending) on Goods & Services is mainly due to low spending of funds allocated for MISP projects • Actual spending of 22.89% against spending plan of 22.13% (over-spending) on Transfers & Subsidies is mainly due to payments made for leave & inmates gratuities under item households • Actual spending of 12.14% against spending plan of 14.57% (under-spending) on Payments for Capital Assets is mainly due to low spending of funds allocated for capital works projects due to low billing from Department of Public Works for capital works projects completed

  9. CHALLENGES ON BUDGET ALLOCATION FOR 2009/10 FINANCIAL YEAR • GPSSBC Resolution number 2 of 2009 was signed on 24 June 2009 which makes provision for implementation of OSD for correctional officials • Phase one of OSD consists of implementation of once off back payments to compensate officials for delay on OSD implementation effective from 1 July 2008 to 30 June 2009 (12 months) & introduction of salary increase adjustment for non-centre & centre based officials • Phase two of OSD consists of implementation of remuneration to be paid to correctional officials based on recognition of their experience with effect from 01 April 2010 • Having noted OSD obligations against insufficient budget allocation, Department is nonetheless obliged to carry on with implementation of OSD in terms of signed GPSSBC Resolution number 2 of 2009

  10. STATE OF EXPENDITURE PER PROGRAMME FOR YEAR TO DATE: 30 JUNE 2009

  11. STATE OF EXPENDITURE PER PROGRAMME FOR YEAR TO DATE: 30 JUNE 2009

  12. STATE OF EXPENDITURE PER GFS CLASSIFICATION FOR YEAR TO DATE: 30 JUNE 2009

  13. STATE OF EXPENDITURE PER GFS CLASSIFICATION FOR YEAR TO DATE: 30 JUNE 2009

  14. NATIONAL PROJECTED EXPENDITURE PER PROGRAMME FOR YEAR: 2009/10 FINANCIAL YEAR

  15. NATIONAL EXPENDITURE PER GFS CLASSIFICATION PROJECTED FOR YEAR: 2009/10 FINANCIAL YEAR

  16. B. BELT-TIGHTENING MEASURES

  17. BELT-TIGHTENING MEASURES The following belt-tightening measures were introduced & are being implemented to contain costs: • Limitation & stricter control over traveling, subsistence & related accommodation expenditure. • Limitation & stricter control over appointment of consultants in Department. • Limitation & stricter control over purchases of furniture & vehicles. • Discontinuation of purchases of uniform for administrative staff members. • Limitation of colour & quantity printing of documents. • Tightening control over utilisation of telephone landlines. • Imposed stricter control over management of stores items.

  18. C. ADMINISTRATIVE REPORT ON OPERATIONAL PLAN DELIVERY

  19. PERFORMANCE ACHIEVEMENTS • Administration: Regulatory and Monitoring Strategy • Public private partnership entities monitored through monthly visits • Manuals to implement new LOGIS system are available to assist operational levels • Draft contract management policy procedures are available • 133 Officials trained on BAS & 320 on LOGIS • Debt management is on track • Progress was made with payment of invoices within 30 days

  20. PERFORMANCE ACHIEVEMENTS • Administration: Regulatory and Monitoring Strategy cont… • Gender forum has been established, gender empowerment training is ongoing & 100 female personnel have been identified for accelerated development • Strike management committees are functioning • HR planning learning forum established • Baseline of leave days lost established to enable management information for decision making • 507 control room posts were filled as well as 179 closed/specialised & management positions • Vacancy rate for scarce skills at 38% is well under targeted 45% & head hunting strategy is successful in some instances • National & regional strategic HR Plans are available

  21. PERFORMANCE ACHIEVEMENTS • Administration: Regulatory and Monitoring Strategy cont… • Baseline for processing service termination documents established, challenges have been identified & mitigation strategies are being processed • OSD signed off for correctional officials & social workers & once off payment of R7500 effected • Progress is being made to improve HR data integrity • 70% of fire fighters & first aides have been appointed in implementing safety & health programmes • Department provides opportunity for experience for 100 interns & 50 students • Training in HR-related areas of 2623 Officials - 426 of them in middle & junior management & 17 in SMS leadership

  22. PERFORMANCE ACHIEVEMENTS Administration: Regulatory and Monitoring Strategy cont… • 626 bursaries were awarded • Payments on judgements made to value of R 68000 • Legal services procedures approved • Prominent legal issues have been identified & 7 awareness workshops conducted • Fraud prevention plan which was approved towards end of March 2009 has been disseminated • Draft policy implementation framework is available • Draft protocol for cluster information sharing is available • Audit of research capacity in cluster was conducted with NPA • Data on fingerprints of offenders in re-offending study has been cleaned & corrected

  23. PERFORMANCE ACHIEVEMENTS • Administration: Regulatory and Monitoring Strategy cont… • Research projects on evaluation of parole boards & organisational culture are on track • Draft business continuity plan is available • Draft Open Source Software strategy is available • Tripartite contract has been signed with regard to phase 1 of Remand Detention and Offender Management System (RDOMS) project • Video remand project in 7 facilities has made very good progress with live testing of system to connect to courts completed • Pilot of Electronic Document & Record Management System (EDRMS) project being implemented at Operations & Management Support (OMS) Branch in Head Office & Witbank & Middleburg Management Areas • National Contact Centre is operational • Development of Monitoring, Evaluation and Reporting (MER) system at 39% completion • Compliance improvement inspections conducted in Eastern Cape, Gauteng and KZN

  24. PERFORMANCE ACHIEVEMENTS • Administration: Operations Strategy • Monitoring visits undertaken and compliance found to be generally high • Asset acquisition plans and procurement plans are available • Personnel trained on various aspects of financial management • Data base created for losses and debts has commenced to allow for better measurement of impact on Department • Considerable percentage of bids awarded to historically disadvantaged individuals and small businesses as priority groups such as females and disabled persons • Good progress with regard to payment of invoices within 30 days

  25. PERFORMANCE ACHIEVEMENTS • Administration: Operations Strategy cont… • Vacancy rate remains higher than set target • Scarce skills rate remain lower than target for nurses and social workers but still higher than set target for psychologists and pharmacists. Head hunting strategy has led to filling of some posts • PERSAL data integrity is improving and is over 70% • Service terminations are receiving attention and some regions are making progress in timeous attention to these matters • Exit interviews are being conducted • Moderation of performance assessment was generally successful • Various HR-related training programmes have been conducted • Health and wellness programmes are being implemented • Increasing participation noted in various sporting codes

  26. PERFORMANCE ACHIEVEMENTS • Administration: Operations Strategy cont… • Performance information on legal matters focus on impact on DCS financially as well as in terms of loss of skills and mitigation actions • Disciplinary hearings finalised timeously and imposition of sanctions being tracked • Participation in cluster structures improving • Compliance inspections undertaken and generally compliance has improved

  27. PERFORMANCE ACHIEVEMENTS • Security: Regulatory and Monitoring Strategy • Progress made in revision of security inspections manual • There have been 8 escapes, this is 0,5 of 10 000 inmates - surpassed target of 1,1 per 10 000. • Draft anti gang strategy framework is available • Security technology audit has been completed & report is available

  28. PERFORMANCE ACHIEVEMENTS • Security: Operations Strategy • Investigations of all security incidents are in process and prioritised • FS / NC had 3 escapes, LMN 2, KZN 1, Gauteng 1, EC 0, WC 1 with 8 in total • Assaults remain fairly high although some regions recorded a decrease in comparison to last year • There were nine unnatural deaths with 2 of them being suicides • Plans to deal with security incidents are implemented and training is a priority while spot checks are being conducted regularly • Regions have audited availability of policies and rectified shortcomings in this respect

  29. PERFORMANCE ACHIEVEMENTS • Corrections: Regulatory and Monitoring Strategy • Implementation of assessment tools & correctional sentence plans was monitored in 3 regions • Female offender profile & trend analysis for female correctional centres is available • Research on sexual offenders is completed • Draft reclassification tool for parolees & probationers is available • Unit management (including structured day & 3 meal system) fully implemented at 86 out of 138 centres, i.e. 67% • 99 Officials trained on implementation of case management tools • 4 chapters of discussion document on legislative framework for remand detention is completed

  30. PERFORMANCE ACHIEVEMENTS • Corrections: Operations Strategy • Backlog in assessment of offenders and compilation of sentence plans reduced • Offenders increasingly participating in correctional programmes • Increasing implementation of unit management in centres • 6720 new admissions have correctional sentence plans • Overcrowding reduced from 143,33% in April 09 to 142,05% in June 09 • A baseline determined for offenders not appearing for court hearings and mitigation actions taken

  31. PERFORMANCE ACHIEVEMENTS • Social reintegration: Regulatory and Monitoring Strategy • Draft learner guide on supervision categories & sanctions for probationers is available • Compliance monitoring tool for Correctional Services Parole Boards is approved • Admission & release information now available on offenders who have completed minimum detention periods & offenders whose placements have been approved

  32. PERFORMANCE ACHIEVEMENTS • Social reintegration: Operations Strategy • 9565 violations of parole conditions recorded • Reduction in cases where Case Management Committees recommendations differ from Parole Board decisions • Backlog of cases not attended to for parole purposes have been identified and mitigation actions in place

  33. PERFORMANCE ACHIEVEMENTS • Facilities: Regulatory and Monitoring Strategy • Department of Public Works processes finalised towards service level agreement between DPW & DCS • Draft procedures & minimum facilities requirements available • Expiring leases have been renewed • New leases have been procured • 10 Parole board offices available for occupation in LMN (1), Gauteng (5), FS / NC (1), WC (1) & EC (2)

  34. PERFORMANCE ACHIEVEMENTS • Facilities: Operations Strategy • An audit of 50% of immovable assets has been conducted • Environmental impact increasingly considered with installation of solar heating systems in some centres

  35. PERFORMANCE ACHIEVEMENTS • Development: Regulatory and Monitoring Strategy • Draft skills development cost & price tariff structure available • MIS for skills development is being implemented • Partnership established with Department of Social Development to establish youth care centres, Department of Arts & Culture on Arts Access Programme & National Arts Festival & Department of Education to train master trainers in DCS on ABET level 2 curriculum • Pretoria & Johannesburg Female Correctional Centres identified to establish Early Childhood Development (ECD) centres

  36. PERFORMANCE ACHIEVEMENTS • Development: Operations Strategy • 10574 Offenders in literacy programmes • 14317 Offenders in skills development programmes • 10000 Offenders in mainstream education • 130000 Offenders participate in Sport, Recreation, Arts & Culture (SRAC) programmes • Increasing development of partnerships to provide development programmes • Meat, fruit, chicken, etc are being produced according to farm plans • Klerksdorp Correctional Centre has computer based training centre in partnership with Vuselele FET College • 2951 offenders participate in agricultural activities & 1438 in production workshops

  37. PERFORMANCE ACHIEVEMENTS • Care: Regulatory and Monitoring Strategy • Several policies & procedures have been reviewed or are being developed, e.g. Food & Services training manual, Guidelines for Paganists, ATR & Muslims, Policy Procedures for Elderly Offenders, guidelines for HIV & AIDS programmes & Correctional Centre Based Care Policy & Procedures • Shembe Guidelines approved & Child Offender Policy Procedures approved • Primary health care package & government priority programmes have been identified for implementation • Psychologists from 3 regions workshopped on drug & substance abuse with SANCA Horizon • Survey of sexual abuse amongst offenders is being conducted • Job descriptions for counsellors determined to enhance psychological service delivery

  38. PERFORMANCE ACHIEVEMENTS • Care Regulatory and Monitoring Strategy cont… • Substance abuse & anger management programmes have been reviewed & approved for implementation • Pilot of new youth programme is currently being implemented

  39. PERFORMANCE ACHIEVEMENTS Care Operations Strategy • Primary health care rendered in most centres • 47000 Spiritual care sessions were conducted • 28000 Social work interviews, 5000 offenders assessed & 5000 offenders participated in group sessions • 1890 Offenders have received psychological services • 18000 Offenders participated in HIV & AIDS programmes • 1600 Offenders are participating in programmes provided by external service providers. • Various partnerships established

  40. PERFORMANCE CONSTRAINTS • Administration • Some planned training did not take place due to budgetary constraints • Development of asset verification programme still in process • Asset reconciliation behind due to new system implementation by Treasury • Policies not yet approved • Moratorium on filling of posts hampers functioning & leads to 11,3% vacancy rate currently • Department in competition with other entities for scarce skills such as psychologists, nurses, etc. • Exit management programme not fully implemented

  41. PERFORMANCE CONSTRAINTS • Development • MIS not fully operational due to infrastructure issues and data cannot be obtained in real time due to system difficulties • Slow organisational process such as approval of policies & procedures • Human resource constraints • Quality assurance committees non-functional • Care • Policies & procedures not yet completely approved • Human resource constraints • Compliance with legislation & policies to ensure good governance also delays processes such as appointment of service providers • Lack of expertise in design & development of programmes internally

  42. PERFORMANCE CONSTRAINTS • Corrections • Corrections Policy not yet approved • Shortage of human resources • MIS information delay with regard to security • Non-approval of organisational structure • Budgetary constraints • Slow delivery of reports from Regions

  43. D. OUTSOURCING

  44. WHAT IS OUTSOURCING? Outsourcing refers to the practice of turning-over internal Departmental functions/services to an outside service provider

  45. WHY DO WE OUTSOURCE ? • To source expertise and skills that are not available within the Department • The high turn-over and the inability to retain and match what the private sector is offering in terms of salary • Prolonged process of staffing • To allow the Department to refocus on its core mandate • Improve service delivery of the Department on the core mandate • Cont …

  46. WHY DO WE OUTSOURCE ? • Enhance better compliance to statutory requirements linked to the core mandate of the Department, e.g. Correctional Services Act, Act 111 of 1998 • Give effect to other statutory requirements such as PFMA, PPPFA, Health and Safety Act, etc. • Cost benefits for the Department • Enhance effectiveness, efficiency and economical

  47. METHODS OF OUTSOURCING IN PUBLIC SERVICE Public Private Partnership informed by PFMA and Treasury Regulations, Chapter 16 Convectional Procurement through the use of Treasury Regulations, Chapter 16A (Supply Chain Management)

  48. LEGISLATIVE FRAMEWORK THAT INFORMS METHOD OF SOURCING Both these methods involve the application of the following Acts: • South African Constitution (Act 108 of 1996) • Public Finance Management Act (Act 29 of 1999) and its Regulations in Chapter 16 (PPP) and 16A (SCM) Cont …

  49. LEGISLATIVE FRAMEWORK THAT INFORMS OUTSOURCING • Broad Base Black Economic Empowerment Act (Act 53 of 2003) • Preferential Procurement Policy Framework Act (Act 5 of 2000) and its Regulations, 2001

  50. LEGISLATIVE FRAMEWORK THAT INFORMS OUTSOURCING • Correctional Services Act (Act 111 of 1998) • White Paper on Corrections • Departmental Policies and Procedures

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