PRESENTATION TO THE PORTFOLIO COMMITTEE ON CORRECTIONAL SERVICES 23 October 2006 National Treasury

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

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

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

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

Budget / Expenditure trends

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

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%)

Personnel costs (P120; T 5.1.3) R’000 2003/04 2004/05 (Vulindlela) 2005/06 Salaries 2,655,246 2,892,001 3,091,181 Overtime 820,289 679,723 491,758 Home owners allowance 74,928 45,983 42,563 Medical assistance 630,241 624,634 326,875

Budget: Comp of Employees 2003/2004   Adjusted Appropriation Virement Revised Allocation Actual Expenditure 4,960,122 (7,052) 4,953,070 5,013,476 2004/2005 Final Allocation 5,381,244 15,864 5,397,108 5,135,982 2005/2006 5,862,575 (768,757) 5,093,818 5,091,829 Substantial virement in 05/06 – mainly to Capital Assets (M&E)

Budget: Goods & Services (P73) 2003/2004   Adjusted Appropriation Virement Revised Allocation Actual Expenditure 1,477,369 5,465 1,482,834 1,512,938 2004/2005 Final Allocation 1,757,246 (38,895) 1,718,351 1,632,155 2005/2006 2,010,596 (63,635) 1,946,961 1,882,507

Budget: Capital Assets (P73) 2003/2004   Adjusted Appropriation Virement Revised Allocation Actual Expenditure 1,065,143 1,836 1,066,979 844,239 2004/2005 Final Allocation 1,276,628 14,019 1,290,647 1,206,664 2005/2006 1,411,799 821,293 2,233,092 2,030,354 05/06 vired from Comp of Empl

Expenditure per Prog: 31 March 2006 (P 74 to 88) Final appr Actual exp Under/over spending Percentage Administration 2,499,979 2,462,552 37,427 98.50% Security 3,122,480 3,051,627 70,853 97.73% Corrections 617,172 613,560 3,612 99.41% Care 1,029,465 1,028,059 1,406 99.86% Development 481,361 478,337 3,024 99.37% Social Reintegration 301,846 301,335 511 99.83% Facilities 1,762,853 1,612,625 150,228 91.48% Internal charges (490,936) (481,546) (9,390) 98.09% Total 9,324,220 9,066,549 257,671 97.24% DCS requested roll-over of R122 million – funds not committed – if approved 98,5% spending

Final expenditure per economic classification: 31 March 2006 (P 73) appr Actual exp Under/over spending Percentage Comp of employees 5,093,818 5,091,829 1,989 100.0% Goods and services 1,946,961 1,882,507 64,454 96.7% Interest & rent on land 45 40 5 88.9% Fin trans. in A&L -  14,273 (14,273) 0.0% Transfers and subsidies 50,304 47,488 2,816 94.4% Capital assets 2,233,092 2,030,412 202,680 90.9% Total 9,324,220 9,066,549 257,671 97.2%

%PMG balance: 2005/06

Spending pattern: 2005/06

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

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

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

Personnel trends

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)

Personnel appointments DCS SAPS DEFENCE Appointment Act No of pers PSA, 1994 461 32 980 14 415 Corr Serv Act 36 939 Police Act 124 784 Defence Act 63 443 Other 94 1 - Total 37 494 157 765 77 858 Corrections is appointing few personnel in terms of the PSA Act. Cost savings could be achieved with regard to allowances, pension, etc.

HR Development (excl Comp of Empl, Transf & subs) (P 119; T 5.1.1) DIRECTORATE / REGION (R'000) 04/05 05/06 Variation Training needs identified (P 140; T 5.11.1) 151 680 159 264 5% Policy and External Training 7,821 6,092 (22.1%) Core Curriculum 17,959 12,926 (28.0%) Training Standards 711 694 (2.4%) Functional and Management (HO) 10,210 13,076 28.1% Western Cape 6,681 1,376 (79.4%) NW/MP/LP 3,592 1,252 (65.1%) E/Cape 3,719 1,300 (65.0%) FS/NC 2,102 2,547 21.2% Gauteng 4,168 2,447 (41.3%) KwaZulu-Natal 3,648 2,204 (39.6%) Seta 2,329 3,467 48.9% Total 62,940 47,381 (24.7%)

Personnel comp: DCS 36 385 SAPS 155 532 (x4) INJURY ON DUTY (P141; T 5.12) DCS SAPS 03/04 04/05 05/06 Basic medical attention - 736 403 4,238 Temp. total disability 154 73 Permanent disability 30 68 Fatal 6 1 84 Total 840 926 545 4,322 Personnel comp: DCS 36 385 SAPS 155 532 (x4)

Annual Report performance against plan 2005/06

Outputs, Indicators & Targets (P 27) SECURITY Output Indicators AR target Actual Security Safe & secure environment % Decrease in assault of inmates, ADT's staff Fewer than 1 739 (2 080) 2 001   unnatural deaths by violence 41 (71) 30 escapes by inmates compared to 2004/05 171 (154) 112 Numbers in brackets = ENE targets

Outputs, Indicators & Targets – cont. (P 29 / 30) CORRECTIONS Output Indicators AR target Actual Personal Corrections Risk assessment & profiling of offenders % of offenders risk assessed and profiled 23 % of Commence 06/07 Reduction in recidivism Recidivism rate T / b bench- marked in Work opportunities for sentenced. inmates Daily average of work provided More than 30 000 (dept) and 5 300 (outside org) 3 400 (dept) 6 565 (oo) AR contains many other indicators – Strategic Plan % of reviewed offenders awarded parole (50%) as in ENE not addressed

Outputs, Indicators & Targets – cont. (P 32) CARE Output Indicators AR target Actual Personal Well-being Well-being of persons under dept. care No. of staff and offenders trained as master trainers and peer HIV Educators M/t 420 1 254 No. of support groups M/t 75 49   Social work sessions No. of persons participated M/t 118 292 (106 000) 118 057 Psychological M/t 15 500 17 820 Spiritual care M/t 150 000 (155 000) 165 615

Outputs, Indicators & Targets – cont. (P 35) Development Output Indicators AR target Actual Personal of offenders programme for sentenced offenders No. of participating in education programmes M/t 26 700 (25 000) 22 932 (remissions) Skills developmental M/t 21 000 8 502 (late receipt of funds Labour)   No. of released receiving assistance M/t 40 000 (27 100) 42 510 Important indicator re work opportunities not addressed

Outputs, Indicators & Targets – cont. (P 40) Social Re-integration Output Indicators AR target Actual Community liaison Supervision of probationers and parolees No. of parolees and per supervisory officer F/t 30 34 % of total absconders traced M/t 36% (58%) 10,3%   Material & financial assistance to needy released offenders No. of persons participated in mass participation projects M/t 92 000 96 000 Not clear if percentage of released persons attending re-integration programmes was benchmarked in 2005/06

Outputs, Indicators & Targets – cont. (P 43) Facilities Output Indicators AR target Actual Planning Accommodation in correctional centres No. of additional bed spaces 12 000 in 06/07 # Building & maintenance Properly planned infrastructure correctional facilities renovated 11   Upgrading of additional bed spaces 1 200 (1 027) 1 171 # Initial target for additional four facilities: To be occupied in 2005/06

Report of the Auditor-General 2005/06

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

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

Discussion