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Presentation to Standing Committee on Appropriation: 21 October 2009

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1. STATE OF EXPENDITURE AS AT 30 JUNE 2009

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NATIONAL STATE OF EXPENDITURE AS AT 30 JUNE 2009

R'000

Budget allocation 13,238,568

Less: Expenditure 2,892,413

Total amount available 10,346,155

Percentage spent 21.85%

Percentage of spending plan 22.62%

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COMMENTS ON THE NATIONAL STATE OF EXPENDITURE FOR THE FIRST QUARTER PER PROGRAMME AS AT 30

JUNE 2009 • The final overall expenditure of the Department as at 30 June 2009 was at 21.85% against the

spending plan of 22.62% (under-spending).

• The actual spending of 23.17% against the spending plan of 24.31% (under-spending) under

the Programme Administration is mainly due to the low spending of funds allocated for MISP

projects (RDOMS and EDRMS).

• The actual spending of 23.83% against the spending plan of 22.94% (over-spending) under the

Programme Security is mainly due to the payments of overtime made to the correctional

officials in line with the continuous implementation of the PSCBC Resolution number 1 of 2007.

The implementation of 7-Day Establishment with effect from 1 July 2009 will result in the

reduction of the overtime expenditure which used to be paid in line with the 5-Day Work Week

Establishment.

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COMMENTS ON THE NATIONAL STATE OF EXPENDITURE FOR THE FIRST QUARTER PER PROGRAMME AS AT 30

JUNE 2009 • The actual spending of 22.78% against the spending plan of 24.02% (under-spending) under

the Programme Corrections is mainly due to the low spending of funds allocated for the

purchases of Machinery and equipment due to ITC approval problems and the delay in the

bidding process.

• The actual spending of 19.81% against the spending plan of 23.68% (under-spending) under

the Programme Care is broadly due to the relevant outstanding internal charges transactions to

be cleared to this Programme in line with the request for items and consumption thereof.

• The actual spending of 18.96% against the spending plan of 23.20% (under-spending) under

the Programme Development is mainly due to the low spending of funds allocated for the

purchases of Machinery and equipment due to ITC approval problems and the delay in the

bidding process.

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COMMENTS ON THE NATIONAL STATE OF EXPENDITURE FOR THE FIRST QUARTER PER PROGRAMME: 30 JUNE

2009 • The actual spending of 23.70% against the spending plan of 21.79% (over-spending) under the

Programme Social Reintegration is mainly due to the payments of overtime made to the

correctional officials in line with the continuous implementation of the PSCBC Resolution

number 1 of 2007. The implementation of 7-Day Establishment with effect from 1 July 2009

will result in the reduction of the overtime expenditure which used to be paid in line with the 5-

Day Work Week Establishment.

• The actual spending of 15.77% against the spending plan of 16.65% (under-spending) under

the Programme Facilities is mainly due to the low spending of funds allocated for capital works

projects due to the low and late billing from the Department of Public Works for capital works

projects completed.

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COMMENTS ON THE NATIONAL STATE OF EXPENDITURE FOR

THE FIRST QUARTER PER GFS CLASSIFICATION: 30 JUNE 2009

• The actual spending of 23.58% against the spending plan of 23.54% (over-spending) on

Compensation of Employees is mainly due to the payments of overtime made to the

correctional officials in line with the continuous implementation of the PSCBC Resolution

number 1 of 2007. The implementation of 7-Day Establishment with effect from 1 July 2009

will result in the reduction of the overtime expenditure which used to be paid in line with the 5-

Day Work Week Establishment.

• The actual spending of 21.34% against the spending plan of 23.39% (under-spending) on

Goods and Services is mainly due to the low spending of funds allocated for MISP projects.

• The actual spending of 22.89% against the spending plan of 22.13% (over-spending) on

Transfers and Subsidies is mainly due to the payments made for the leave and inmates

gratuities under the item households.

• The actual spending of 12.14% against the spending plan of 14.57% (under-spending) on

Payments for Capital Assets is mainly due to the low spending of funds allocated for capital

works projects due to the low billing from the Department of Public Works for capital works

projects completed.

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CHALLENGES ON THE BUDGET ALLOCATION FOR 2009/10

FINANCIAL YEAR • The GPSSBC Resolution number 2 of 2009 was signed on the 24 June 2009 which makes provision for the

implementation of OSD for correctional officials.

• Phase one of the OSD consists of the implementation of once off back payments to compensate officials for

the delay on the OSD implementation effective from the 1 July 2008 to 30 June 2009 (12 months) and the

introduction of salary increase adjustment for non-centre and centre based officials.

• Phase two of the OSD consists of the implementation of remuneration to be paid to the correctional officials

based on the recognition of their experience with effect from the 01 April 2010.

• Having noted the OSD obligations against the insufficient budget allocation, the Department is nonetheless

obliged to carry on with the implementation of the OSD in terms of the signed GPSSBC Resolution number 2

of 2009.

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STATE OF EXPENDITURE PER PROGRAMME FOR THE FIRST QUARTER: 30 JUNE 2009

Programme Budget R'000 Exp to date R'000 % Spent Budget avail R'000Administration 3,478,050 806,022 23.17% 2,672,028Security 4,425,262 1,054,681 23.83% 3,370,581Corrections 1,112,080 253,301 22.78% 858,779Care 1,591,750 315,251 19.81% 1,276,499Development 448,683 85,078 18.96% 363,605Social reintergration 425,911 100,954 23.70% 324,957Facilities 1,756,832 277,126 15.77% 1,479,706Total 13,238,568 2,892,413 21.85% 10,346,155

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STATE OF EXPENDITURE PER PROGRAMME FOR THE FIRST QUARTER: 30 JUNE 2009

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Administration Security Corrections Care Development Socialreintergration

Facilities Total

Budget R'000

Exp to date R'000

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STATE OF EXPENDITURE PER GFS CLASSIFICATION FOR THE FIRST QUARTER: 30 JUNE 2009

GFS Classification Budget R'000Exp to date

R'000% Spent Budg avail R'000

Compensation of Employees 8,292,350 1,955,243 23.58% 6,337,107Goods & Services 3,608,831 769,969 21.34% 2,838,862Thefts and losses 0 720 0.00% -720Interst & Rent on land 57 0 0.00% 57Transfers & Subsidies 37,844 8,662 22.89% 29,182

Payment of Capital Assets 1,299,486 157,819 12.14% 1,141,667Total 13,238,568 2,892,413 21.85% 10,346,155

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STATE OF EXPENDITURE PER GFS CLASSIFICATION FOR THE FIRST QUARTER: 30 JUNE 2009

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Compensation ofEmployees

Goods &Services

Interst & Rent onland

Transfers &Subsidies

Payment ofCapital Assets

Total

Budget R'000

Exp to date R'000

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

Programme Budget R'000Exp to date

June 09: R'000

Proj. exp July 09 to March 10

R'000

Projected expenditure

%Shortfall R'000

Administration 3,478,050 806,022 2,672,028 100.00% 0Security 4,425,262 1,054,681 3,370,581 100.00% 0Corrections 1,112,080 253,301 858,779 100.00% 0Care 1,591,750 315,251 1,276,499 100.00% 0Development 448,683 85,078 363,605 100.00% 0

Social reintergration 425,911 100,954 324,957 100.00% 0Facilities 1,756,832 277,126 1,479,706 100.00% 0Total 13,238,568 2,892,413 10,346,155 100.00% 0

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

YEAR

GFS Classification Budget R'000Exp to date

June 09: R'000

Proj. exp July 09 to March 10

R'000

Projected expenditure

%Shortfall R'000

Compensation of Employees 8,292,350 1,955,243 6,337,107 100.00% 0Goods & Services 3,608,831 769,969 2,838,862 100.00% 0Interst & Rent on land 57 0 57 100.00% 0Transfers & Subsidies 37,844 8,662 29,182 100.00% 0

Payment for Capital Assets 1,299,486 157,819 1,141,667 100.00% 0Total 13,238,568 2,892,413 10,346,155 100.00% 0

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Together doing more to break the cycle of crime