2nd Quarter Financial Report for 2015/16 Portfolio Committee on Justice and Correctional Services

A1. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE FOR THE YEAR TO DATE: 30 SEPTEMBER 2015

A2. NATIONAL STATE OF EXPENDITURE FOR THE YEAR TO DATE: 30 SEPTEMBER 2015

B. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2015

B. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2015

B. ANALYSIS ON THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE: 30 SEPTEMBER 2015 The year-to-date expenditure of the Department as at 30 September 2015 was R9,876 billion (47.97%) against the spending plan of R10,152 billion (49.24%) resulting in a R276,235 million (1.34%) underspending of the original budget Factors that contributed to the under-/ overspending per Programme are as follows: Programme: Administration. The actual spending of R1,806 billion (48.89%) against the spending plan of R1,758 billion (47.59%) resulting in R48 million overspending. The overspending on goods and services was mainly on item: Fleet services of R75,702 million which was higher than spending plan (R45,331 million) due to the higher number of vehicle repairs due to ageing fleet, kilometer claims as well as fuel, oil and grease costs than anticipated. Additional funds were reprioritised for vehicles during the Adjustment Estimate of 2015/16. The other over spending is on Transfers & Subsidies: leave gratuity due to service termination and claim against the department which was not budgeted for.

B. ANALYSIS ON THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE: 30 SEPTEMBER 2015 Programme: Incarceration. The actual spending of R6,167 billion (47.25%) against the spending plan of R6,501 billion (49.81%) resulting in an underspending of R335 million was mainly on Compensation of Employees due to funded vacancies. PERSAL reported a funded permanent establishment of 28 825, of which 26 759 are funded filled posts, 216 posts are filled additional to the funded establishment, mostly on entry level, resulting in a total PERSAL head count of 26 975, but leaving 2 066 vacant funded posts (7.17%) . On Payments for Capital Assets under Item: Land and Buildings, the underspending was mainly under Payments for Capital Assets under the Item: Buildings and other fixed structures due to delays in projects as a result of shortage of manganese.

B. ANALYSIS ON THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE: 30 SEPTEMBER 2015 Programme: Rehabilitation. The actual spending of R511 million (44.22%) against the spending plan of R556 million (48.12%) resulting in an underspending of R45 million was on Compensation of Employees due to vacancy rate. PERSAL reported a funded permanent establishment of 2 260, of which 2 037 are funded filled posts, 24 posts are filled additional to the funded establishment, mostly on entry level, resulting in a total PERSAL head count of 2 061, but leaving 223 vacant funded posts (9.86%). On Goods and Services under the Item Inventory: Materials and supplies due to funds injected during the first quarter virement exercise for procurement of materials for offender uniform where orders are placed and delivery will take place during October 2015 to February 2016. On Payments for Capital Assets under Machinery and Equipment the underspending is due to delays in the procurement of farming and workshop equipment in various regions. Programme: Care. The actual spending of R950 million (52.87%) against the spending plan of R886 million (49.35%) resulting in an overspending of R63 million was mainly on Goods and Services on Nutritional Services as two management areas were added to the nutritional service contract due to dysfunctional boilers and the shortfall was funded in the AENE 2015/16 financial year.

B. ANALYSIS ON THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE: 30 SEPTEMBER 2015 Programme Social Reintegration. The actual spending of R443 million (49.67%) against the spending plan of R451 million (50.57%) resulting in an underspending of R8 million was on Compensation of Employees due to funded vacancies. PERSAL reported a funded permanent establishment of 2 153, of which 2 028 are funded filled posts, 3 posts are filled additional to the funded establishment, mostly on entry level, resulting in a total PERSAL head count of 2 209, but leaving 125 vacant funded posts (5.81%).

C. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR TO DATE: 30 SEPTEMBER 2015

C. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR TO DATE: 30 SEPTEMBER 2015

C. ANALYSIS ON THE NATIONAL STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR TO DATE: 30 SEPTEMBER 2015 Compensation of Employees. The actual spending of R6,574 billion (49.98%) against the spending plan of R6,911 billion (52.53%) resulting in an underspending of R336 million was mainly due to vacant funded posts, PERSAL reported a funded permanent establishment of 42 006, of which 38 510 are funded filled posts, 1 162 posts are filled additional to the funded establishment, mostly on entry level, resulting in a total PERSAL head count of 39 672, but leaving 3 892 vacant funded posts (8,32%). Goods & Services. The actual spending of R2,879 billion (47.69%) against the spending plan of R2,687 billion (44.50%) resulting in an overspending of R192 million was on Goods and Services mainly on the item agency and support services on nutritional services. The other reason for over expenditure was on fleet services of R75,702 million which was higher than the spending plan (R45,331 million) due to the higher number of vehicle repairs than anticipated as a result of the aging fleet. Additional funds were reprioritised for vehicles during the Adjustment Estimate of 2015/16.

C. ANALYSIS ON THE NATIONAL STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR TO DATE: 30 SEPTEMBER 2015 Interest and Rent on Land. There was an expenditure of R48 thousand incurred against a zero budget and that was due to interest paid on arrears salary. This will be remedied during the 2015/16 final virement exercise. Transfers and Subsidies. The actual spending of R53 million (43.89%) against the spending plan of R55 million (45.15%) resulting in an underspending of R7 million was due to lower than anticipated payments of leave gratuity for service terminations. Payments for Capital Assets. The actual spending of R363 million (28.99%) against the spending plan of R500 million (39.24%) resulting in an underspending of R125 million was mainly under Payments for Capital Assets under the Item: Buildings and other fixed structures due to delays in projects which is ascribed to a shortage of manganese as well as under the Item: Machinery & Equipment which is ascribed to delays in procurement of information technology and body scanning equipment.

E. APPROVED VIREMENTS FOR THE FIRST QUARTER DURING 2015/16 FINANCIAL YEAR PER PROGRAMME

E. APPROVED VIREMENTS FOR THE FIRST QUARTER DURING 2015/16 FINANCIAL YEAR PER PROGRAMME Administration The net decrease of R2,760 million was mainly under Goods and Services due to funds shifted to Programme Rehabilitation to fund shortfall realized under Goods and Services for the procurement of animal feed for the farm prisons mainly in Eastern Cape Region in agricultural Services Incarceration The net decrease of R 310 thousand was mainly under Goods and Services due to funds shifted to Programme Administration to fund part of the shortfall realized under Machinery and Equipment for the procurement of new vehicles for the transportation of inmates to courts as well as to hospitals mainly in LMN region Rehabilitation The net increase of R 3,300 million was mainly under Goods and Services due to funds shifted from Programme Administration to fund shortfall realized for the Goods and Services for the procurement of animal feed for the farm prisons in Eastern Cape region Social Reintegration The net decrease of R230 thousand was mainly under Goods and Services due to funds shifted to Programme Administration to fund shortfall realized under Machinery and Equipment for procurement of part of the vehicles needed for transportation of inmates to hospital and to courts mainly in LMN region

E. APPROVED VIREMENTS FOR THE FIRST QUARTER DURING 2015/16 FINANCIAL YEAR PER GFS

E. APPROVED VIREMENTS FOR THE FIRST QUARTER DURING 2015/16 FINANCIAL YEAR PER GFS A decrease in Compensation of Employees was mainly due to funds shifted to fund the following:- Goods and Services to fund shortfall for Nutritional services contract and in year operations across all regions Machinery and Equipment for procurement of new vehicles (R206 million) and agricultural equipment (R51 million) Biological assets for procurement of animals for animal reproduction Software and other intangible for payment of computer licences

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