DOJ&CD 2014 Estimate of National Expenditure

1. DOJ&CD2014 Estimate of National Expenditure Presentation to the Portfolio Committee of Justice and Correctional Services

2. Index • Key assumptions and alignment to MTBPS • Estimates of National Expenditure and Spending Trends • Medium Term Spending pressures

3. DOJ&CD2014 Key Assumptions and Alignment

4. Economic mission statement • Macroeconomic stability, supported by prudent fiscal management and sound monetary policy • Revenue Stabilises at around 29% of GDP (Revenue generated DOJ&CD 2013/14 R403.8m) • Non interest expenditure declines from 30.2% of GDP in 2013/14 to 28.8% of GDP in 2016/17 • Economic growth improves and spending limits/ceilings stay in place leading to budget deficit declining from 4% to 2.8% by 2016/17

5. Implications Cost Containment Measures to achieve fiscal sustainability Improved Costing and Reprioritization of Compensation Spend Reprioritization of spending on goods and services to achieve allocative efficiency

6. Performance on Cost Containment measures without impacting on service delivery • Between 2009/10 to 2013/14 average saving of • 40% on Consultant costs • 10% on Travel and Subsistence

7. Performance on Operation Excellence • Focus on efficiency of processes • Reengineering of processes related to Masters Office and Guardians Fund allowed for expansion of services within headline inflationary increase of budget • Reengineering of processes related to Maintenance payments (Third Party Funds)

8. Alignment to Value for Money Initiatives in Budget Policy Statement Better accountability, discipline and stewardship of public resources Rigorous procurement reforms initiated in infrastructure project management

9. Alignment to NDP-All citizens should feel and be safe • Enhancing court efficiency and Strengthening judicial governance and rule of law (ISM spent R494m and CJS& IJS spent R472m in 2013/14) • Audiovisual remand systems, enhanced court record systems, improved appeal processes and transcriptions • Integrated seamless and modern criminal justice system through IT • Improving access to justice especially to vulnerable groups including LGBTI (Sexual offences spending R11m in 2013/14 and R19.7m 2014/15, Child Justice Act and Children Act spending R2.9m in 2013/14 and R3.3m in 2014/15, LGBTI R1.1m 2014/15)

10. Alignment to NDP • Contribution to Broad Based Black Economic empowerment • 80% in value of spending on goods and services Level1-4 • Building Corruption Free Society • Internal Audit, Anti corruption and Risk Management R63m 2013/14 and R68.8m 2014/15 • Building of a Capable State • Alignment of policy, process, resources, technology and data • Improved people and performance measurement • Improved audit outcomes – VOTE account, CARA, President Fund and Guardian Fund unqualified 2013/14,

11. DOJ&CD2014 Estimates of National Expenditure and Spending Trends

12. Department of Justice and Constitutional Development 2013/142012/132011/12 Final Budget 11,138, 314 10, 181, 592 8 960 034 Less Expenditure 10,663,313 10, 180, 586 8 958 959 Balance 475,001 1, 006 1, 075 Capital Expenditure 347 607 IJS 120 002 Current 7 392 Percentage Expenditure 95,7100 100

13. Capital Works • Under Spending 2013/14 • Delays in implementation – 1 year and longer • Justice College refurbishment • Limpopo High Court • Plettenberg Bay Magistrate office • Mamelodi Magistrate Office • Kagiso Magistrate Office • Mpumalanga High Court • Port Shepstone Magistrate Court

14. Capital Works • Challenges 2014/15 • Mandate of DPW • Adequate technical support • Number of offices with serious structural problems (Bultfontein, Hennenman, Wepener, Lehuritse) • Outstanding lease renewals since 2012 • New dispensation of limitation of lease period and impact on costs (80 leases impacted)

15. Integrated Justice System • Under Spending 2013/14 • Disaster Recovery Site and Network Upgrade • Challenges experienced • Legislation on implementing agency, e.g. SITA • Delays in publishing approved specifications • Delays in evaluation of bids • Delays in the adjudication process

16. Intervention Strategies Implemented • Meeting and formal correspondence • at project management level • at CFO level • at Accounting Officer level • at Ministerial level • Escalation to National Treasury • Escalation to Cabinet

17. Headline on Spending

18. Cost Drivers - Goods and Services

19. Cost Drivers - Goods and Services

20. DOJ&CD2014 Estimates of National Expenditure

21. MTEF BUDGET ALLOCATIONS:Year on Year Growth

22. Total Budget Allocation

23. Budget Allocations per Programme

24. MTEF BUDGET ALLOCATIONS:Growth in Programme Allocations

25. Budget Allocations per Economic Classification

26. Budget Distribution

27. MTEF BUDGET ALLOCATIONS:Growth in Item Allocations Budget growth driven by rise in personnel cost

28. MTEF BUDGET ALLOCATIONS Programmes and Sub programmes Regions Independent Bodies Earmarked Funds Facilities Management

29. Programme 1: AdministrationDivision per sub programme Corporate services (HR, Fin and IT )major spending sub programme

30. Programme 1: Administration 2014/15Division per sub programme

31. Programme 2: Court ServicesDivision per sub programme 465 Lower Courts 13 High Courts (R8.19m/court) ; (R28.19m/court)

32. Programme 2: Court Services 2014/15Division per sub programme

33. Programme 3: State Legal ServicesDivision per sub programme

34. Programme 3: State Legal Services 2014/15Division per sub programme

35. Programme 5: Auxiliary and Associated ServicesDivision per sub programme Major spending area is on Legal Aid .. and mainly driven by increased personnel cost

36. Programme 5: Auxiliary Services 2014/15Division per sub programme

37. INDEPENDENT BODIES

38. EARMARKED AMOUNTS 1 • May not be used for other proposes than those specified

39. FACILITIES MANAGEMENT

40. FACILITIES MANAGEMENT

41. TRANSFER OFFICE OF THE CHIEF JUSTICE

42. MEDIUM TERM SPENDING PRESSURES

43. Medium Term: Spending Pressures • Additional accommodation and Leasing Costs - Capital investment in new court infrastructure and additional office accommodation. - Leasing costs due to delays in capital works: Lead times in capital works necessitates leasing • Personnel establishment expansion - DOJ currently funding new courts with minimum concurrent additional allocations for personnel and operational expenditure - Regional capacitation – additional personnel for regions including court personnel (Interpreters, finance and supply chain management personnel) - Internship, learning and development and recruitment • Technical personnel adjustments Compensation of employees – OSD for legally qualified personnel pay progression and performance awards • Funding for Commissions - Marikana Commission extended until September 2014 - Arms Deal Commission

44. Medium Term: Spending Pressures • Implementation and roll-out cost of legislation – Civil Jurisdiction of Regional Courts. Child Justice and Children's Act Superior Courts Act - High Courts for Mpumalanga and Limpopo - OCJ • Security and risk management Guarding Services for new courts and Security Infrastructure for new and existing courts • Review of the Criminal Justice System Implementation cost of recommendations after Cabinet and Parliamentary endorsement and approval • Increased proximity of courts services to all, especially in townships and rural areas Replace branch courts to ensure that they provide full court services Introduce multilingualism in courts