DOJ&CD Portfolio Committee 3 May 2006

AGENDA 2004/05 - Financial Performance 2005/06 – Budget and Expenditure Overview (Unaudited / Preliminary Information) - UPP’s and reprioritisation MTEF Allocations

2004/05 - FINANCIAL PERFORMANCE

2004/05 ANNUAL REPORT OVERVIEW Final Appr Actual exp Variance R’000 R’000 R’000 DOJ & CD R 5 054 418 R5 005 643 R 48 775 Statutory* R 177 083 R 242 093 (R 65 010) Total R 5 231 501 R5 247 736 (R 16 235) * Judges Remuneration and Allowances

2004/05 ANNUAL REPORT OVERVIEW Programme Final Appr Actual Variance (after exp virement) R’000 R’000 R’000 1. Administration R 579 420 R 579 419 R 1 2. Court Services R 2 291 164 R 2 274 216 R 16 948 3. State Legal Services R 222 684 R 222 684 R 0 4. NPA R 1 202 260 R 1 170 435 R 31 825 5. Auxiliary Services R 758 890 R 758 889 R 1

2004/05 ANNUAL REPORT OVERVIEW Economic Final Appr Actual exp Variance classification (after virement) R’000 R’000 R’000 CURRENT Compensation of Employees R 2 727 532 R 2 727 532 R 0 Goods & Services R 1 142 765 R 1 110 940 R 31 825 Financial Transactions in Assets & Liabilities R 92 504 R 92 335 R 169

2004/05 ANNUAL REPORT OVERVIEW Economic Final Appr Actual Variance classification (after virement) R’000 R’000 R’000 TRANSFERS & SUBSIDIES Prov & Municipalities R 8 480 R 8 480 R 0 Dept agencies & Accounts R 606 837 R 606 836 R 1 Foreign gov & intern Organisations R 162 R 162 R 0 Households R 12 550 R 12 550 R 0

2004/05 ANNUAL REPORT OVERVIEW Economic Final Appr Actual Variance classification (after virement) R’000 R’000 R’000 PAYMENT ON CAPITAL ASSETS Buildings & other fixed Structures R 270 483 R 270 483 R 0 Machinery & Equipment R 183 392 R 166 612 R 16 780 Software & other Intangible assets R 9 713 R 9 713 R 0

UPP’s AND REPRIORITISATION NOTE: UNAUDITED / PRELIMINARY INFORMATION 2005/06 - BUDGET AND EXPENDITURE OVERVIEW & UPP’s AND REPRIORITISATION NOTE: UNAUDITED / PRELIMINARY INFORMATION

2005/06 – Financial Performance R 309 million – Year to date underspending (26 April 2006) R 289 million – Roll-over request to NT R 20 million – Surplus to be surrendered (0.37% of Departmental Budget)

2005/06 – Financial Performance R120 million anticipated underspending as at 7 Feb 2006 Reduced to R 20 million, as at 26 April 2006, due to the finalisation of projects resulting in increased commitments (Roll-overs)

2005/06 Budget & Expenditure Overview

2005/06 Budget & Expenditure Overview Budget allocations (Blue) include marginally funded projects UPP’s (Red) – Unfunded Priority Projects Registered MTEF process Updated regularly Changes as costing information becomes firm (Process of estimation & investigation before costing becomes final) Dynamic process Underspending due to various reasons Process of Reprioritisation – moving projects and budgets out of blue and move projects and expenditure from red to blue

2005/06 BUDGET RE-PRIORITISATION Branch / Programme Details of bid / re-allocation Rm   Court Services X ray machines / metal detectors 35 Transcription Services 136.8 Burglar proofing 18 Masters Office furniture and vehicles 6 Overspending on compensation 15 of employees (job upgradings implemented without funds) State Attorney Offices Kimberley (new office) 7 Furniture and office equipment 10

2005/06 BUDGET RE-PRIORITISATION Details of bid / re-allocation Branch / Programme Details of bid / re-allocation Rm ISM DNS roll-out phase III 40   Family Advocates Office equipment, computers and vehicles 3.5 Public Protector High Profile Cases & JYP implementation SIU Vehicles, access control, laptops, 5.05 software licences etc

2005/06 BUDGET RE-PRIORITISATION Branch / Programme Details of bid / re-allocation Rm   LAB Judicare, vehicles, computers, 13.22 software licences etc NPA State Attorney fees, GG accounts, 77 specialised and other vehicles, computers etc HR Internship Programme 10 Total re-allocated 380.07

2005/06 Budget & Expenditure Overview

2005/06 Budget & Expenditure Overview High expenditure in last quarter of financial year due to – Capital Works payments (DPW) Payments for software licenses Government Garage payments Computer Hardware (DNS) Payments for Professional Service Providers Authorised write-offs

2005/06 Budget & Expenditure Overview

2005/06 Budget & Expenditure Overview

2005/06 Budget & Expenditure Overview MAJOR REASONS FOR UNDERSPENDING Savings on personnel because of vacancies and staff turnover. The approval of the framework for court managers in September 2005 resulted in most court management position only being filled now; Magistrates salaries direct charge against Revenue Fund w.e.f. 1 April 2005; The Monies in Trust project – delays in the negotiation and final approval/s stages; Savings in operational cost because of delays in appointments; Infrastructure projects still in progress (Court building, maintenance and upgrading); Government and departmental priorities not yet finalised such as the finalisation of the Children’s Bill, the Child Justice Bill, the Sexual Offences Bill; and Delays in the procurement processes.

MTEF ALLOCATIONS

MTEF Allocations 2005/06 – 2008/09

Observations on 2006 ENE Allocations Between 2002/03 and 2008/09, the department’s budget, including statutory amounts, is expected to increase at an average annual rate of 11,2 per cent, from R4,7 billion to R8,9 billion. The largest part of this increase goes towards increasing personnel capacity and providing services, hence the relatively large increases in the Court Services and National Prosecuting Authority programmes. The 2006 Budget sets out additional allocations of R495 million for 2006/07, R722 million for 2007/08 and R1,1 billion for 2008/09 mainly for spending on the policy priorities of improving access and increased capacity, but also for an increase in the statutory provision for judges’ and magistrates’ salaries. From April 2006, the department has taken responsibility for accommodation costs which were devolved from the Department of Public Works.  [R309,8 million in 2006/07, R344,9 million in 2007/08 and R369,4 million in 2008/09]

Observations on 2006 ENE Allocations Over the MTEF, there is a relatively large increase in expenditure on the Lower Court subprogramme, which accounts, on average, for 70,5 per cent of this programme’s budget, from R1,5 billion in 2005/06 to R2,3 billion in 2008/09, an average annual rate of 15,8 per cent. This will go towards improving service delivery, integrating the management of cases and people through the justice chain, human resources development and filling vacancies. The increase in expenditure on the Capital Works subprogramme, from R268,1 million in 2006/07 to R308,3 million in 2008/09, is to fund the building of new courts and the rehabilitation of existing court infrastructure. Additional allocations of R34 million in 2006/07, R 61 million in 2007/08 and R92,9 million in 2008/09 are for improving access to the services of the Guardian’s Funds and for deceased and insolvent estate services.

Regional Budget Allocation (Court Services)

Transfer payments - Public Entities and Constitutional Institutions

Transfer payments - Public Entities and Constitutional Institutions Within the additional amounts allocated in the 2006 Budget, R75 million, R79 million, and R129 million have been provided for each of the 2006 MTEF years to – increase human resources capacity in the Legal Aid Board; increase legal representation for children; increase capacity in the office of the Public Protector, the Special Investigating Unit, the Commission on Gender Equality and the South African Human Rights Commission.

Allocations to National Prosecuting Authority

Allocations to National Prosecuting Authority Within the additional amounts allocated in the 2006 Budget, R145 million, R232 million, and R384,8 million have been provided for each of the 2006 MTEF years to facilitate: the rollout of specialised courts; the appointment of additional prosecutors; implementation of job evaluation results in the National Prosecuting Authority; special projects on organised crime syndicates and cyber crime, and enhancing capacity in the asset forfeiture and witness protection units.

THANK YOU