PRESENTATION TO THE PORTFOLIO COMMITTEE ON CORRECTIONAL SERVICES

1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON CORRECTIONAL SERVICES 23 October 2006

2. Scope 1. Introduction 2. Budget / Expenditure trends 3. Personnel trends 4. Annual Report performance against plan 2005/06 5. Report of the Auditor-General 2005/06 6. Discussion

3. Introduction • Annual reports measure or track both financial and non-financial performance against targets • Interested parties study annual reports to ascertain the level of financial and non-financial performance and verify disclosure of financial position and results • Non-financial performance is critical to the success of public sector institutions as this is where the service delivery of the department is of relevance • Committees should pay attention to the emphasis of matter and explore remedial steps with the Minister or Accounting Officer

4. Introduction (cont..) • Benefits of annual report analysis include: • identifying trends in performance • track the progress of performance relative to the strategic plan • determining the financial position and financial performance of the particular institution on a given date • identify if there is progress on issues of concern raised in previous reports

5. Role of Portfolio Committees Focus on the following: (i) The technical quality of the annual reports (ii) Whether reports cover all performance targets set out in strategic/corporate plans (iii) The quality of performance information • The economy, efficiency and effectiveness of service delivery as measured by the performance indicators or by the AG in a performance audit, or by way of other information • Implementation of the entity’s service delivery improvement plan • Evaluating management’s explanations why service delivery was not in line with targets set in the strategic plans and budgets • Investigating under- or over expenditure, the impact on service delivery and the measures taken to comply with the Budget

6. Budget / Expenditure trends

7. Growth in DCS budget • Average annual growth rate of 8,8% • Adjusted appropriation 05/06: R9 324 220 000 (7,5%) 06/07: R9 831 512 000 (7%) 07/08 MTEF subject to Cabinet approval

8. Growth in comp of employees budget • Average annual growth rate of 7,8% • Adjusted appropriation 05/06: R5 093 818 000 (2,6%) 06/07: R5 792 138 000 (5,3%)

9. Personnel costs(P120; T 5.1.3)

10. Budget: Comp of Employees (P 73) Substantial virement in 05/06 – mainly to Capital Assets (M&E)

11. Budget: Goods & Services(P73)

12. Budget: Capital Assets(P73) 05/06 vired from Comp of Empl

13. Expenditure per Prog: 31 March 2006(P 74 to 88) DCS requested roll-over of R122 million – funds not committed – if approved 98,5% spending

14. Final expenditure per economic classification: 31 March 2006(P 73)

15. %PMG balance: 2005/06

16. Spending pattern: 2005/06

17. Deviations between departments’ approved expenditure plans & actual expenditure – 2005/06

18. Deviations between departments’ approved expenditure plans & actual expenditure – 2005/06

19. Deviations between departments’ approved expenditure plans & actual expenditure – 2005/06

20. Personnel trends

21. Personnel numbers: 31 March 2006(P 123; T 5.2.3) Posts: 39 449 Filled: 36 385 Vacant: 3 064 Vacancy rate 7,8% Custodian personnel Posts : 37 230 Filled: 34 896 Vacant: 2 334 (Vulindlela 25 300) Vacancy rate 6,3% Ratio custodian personnel / offender population: 1:4,3 (1:5,9)

22. Personnel appointments Corrections is appointing few personnel in terms of the PSA Act. Cost savings could be achieved with regard to allowances, pension, etc.

23. HR Development (excl Comp of Empl, Transf & subs)(P 119; T 5.1.1)

24. INJURY ON DUTY(P141; T 5.12) Personnel comp: DCS 36 385 SAPS 155 532(x4)

25. Annual Report performance against plan 2005/06

26. Outputs, Indicators & Targets(P 27) Numbers in brackets = ENE targets

27. Outputs, Indicators & Targets – cont.(P 29 / 30) AR contains many other indicators – Strategic Plan% of reviewed offenders awarded parole (50%) as in ENE not addressed

28. Outputs, Indicators & Targets – cont.(P 32)

29. Outputs, Indicators & Targets – cont.(P 35) Important indicator re work opportunities not addressed

30. Outputs, Indicators & Targets – cont.(P 40) Not clear if percentage of released persons attending re-integration programmes was benchmarked in 2005/06

31. Outputs, Indicators & Targets – cont.(P 43) # Initial target for additional four facilities: To be occupied in 2005/06

32. Report of the Auditor-General 2005/06

33. Report of the Auditor-General: 2005/06(P 61 onwards) DCS received a qualified audit opinion in 2003/04, 2004/05 and 2005/06, due to amongst others: • PPP – account as operating / finance lease • Staff debt: Lack of control framework to monitor and recover debt (04/05 & 05/06) • Asset management: Insufficient capturing of and maintenance of asset register – three different computer programmes (03/04 & 04/05 emphasis of matter) • Medical expenditure: Lack of proper management framework, monitoring and reconciliation for the verification of medical aid expenditure prior to payment thereof (03/04; 04/05 & 05/06) • Housing loan guarantees: Lack of management framework monitoring controls and reconciliation

34. Report of the Auditor-General: 2005/06 Emphasis of matter lists 15 items, including: REGULARITY AUDIT: Supply chain management PERFORMANCE AUDIT: Official accommodation

35. Discussion