1st Quarter Financial Report for 2015/16 Portfolio Committee on Justice and Correctional Services

Outline of the presentation A. Summary of the 1st quarter National State of Expenditure for 2015/16 financial year B. Implementation of Recommendations made by Budgetary Review and Recommendation Report: 31st October 2014

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

A2. COMMENTS ON THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE: 30 JUNE 2015 The year-to-date expenditure of the Department as at 30 June 2015 was R4,690 billion (22.75%) against the spending plan of R4,995 billion (24.23%) resulting in a R305 million (1.48%) underspending of the original budget Factors that contributed to the under-/ overspending per Programme are as follows: Programme: Administration. The actual spending of R936 million (25.33%) against the spending plan of R845 million (22.85%). The overspending was mainly due to the net effect of an overspending on Property Payment under Office Accommodation.

A2. COMMENTS ON THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE: 30 JUNE 2015 Programme: Incarceration. The actual spending of R2,882 billion (22.04%) against the spending plan of R3,247 billion (24.83%) (underspending) was mainly on Compensation of Employees due to funded vacancies. PERSAL reported a funded permanent establishment of 28 825, of which 26 428 are funded filled posts, 975 posts are filled additional to the funded establishment, mostly on entry level, resulting in a total PERSAL head count of 27 403, but leaving 2 397 vacant funded posts (8.31%) . 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 the fact that invoices for April and May 2015 were received late in June 2015 and will be processed in July 2015 and slow moving projects due to shortage of manganese bars and contractors who have been liquidated. The joint task team between DCS and DPW led by the Deputy Ministers of both departments is currently looking at unblocking the identified problem areas. . The spending plan as at June 2015 is R200 million against the actual spending of R129 million resulting to an underspending of R71 million.

A2. COMMENTS ON THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE: 30 JUNE 2015 Programme: Rehabilitation. The actual spending of R230 million (20.01%) against the spending plan of R255 million (22.16%) (underspending) was on Compensation of Employees due to vacancy rate. PERSAL reported a funded permanent establishment of 2 260, of which 1 961 are funded filled posts, 23 posts are filled additional to the funded establishment, mostly on entry level, resulting in a total PERSAL head count of 1 984, but leaving 299 vacant funded posts (13.23%). Programme: Care. The actual spending of R426 million (23.70%) against the spending plan of R429 million (23.89%) (underspending) was on Compensation of Employees due to vacancy rate. PERSAL reported a funded permanent establishment of 1 924, of which 1 718 are funded filled posts, 36 posts are filled additional to the funded establishment, mostly on entry level, resulting in a total PERSAL head count of 1 754, but leaving 206 vacant funded posts (10.70%).

A2. COMMENTS ON THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE: 30 JUNE 2015 Programme Social Reintegration. The actual spending of R215 million (24.15%) against the spending plan of R219 million (24.53%) (underspending) was on Compensation of Employees due to vacancy rate. PERSAL reported a funded permanent establishment of 2 153, of which 1 989 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 1 992, but leaving 164 vacant funded posts (7.61%).

A2. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 JUNE 2015

A2. GRAPHIC OVERVIEW OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE: 30 JUNE 2015

A3. COMMENTS ON THE NATIONAL STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR TO DATE: 30 JUNE 2015 Compensation of Employees. The actual spending of R3,208 billion (22.86%) against the spending plan of R3,466 billion (24.69%) (underspending) was mainly due to vacant funded posts, PERSAL reported a funded permanent establishment of 42 006, of which 38 027 are funded filled posts, 2 116 posts are filled additional to the funded establishment, mostly on entry level, resulting in a total PERSAL head count of 40 143, but leaving 3 979 vacant funded posts (9,47%). Goods & Services. The actual spending of R1,312 million (23,94%) against the spending plan of R1,283 million (23.41%) (overspending) was mainly on the item Operating Leases.

A3. COMMENTS ON THE NATIONAL STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR TO DATE: 30 JUNE 2015 Interest and Rent on Land. There was an expenditure of R44 thousand incurred against a zero budget and that was due to interest paid on arrear salary. Transfers and Subsidies. The actual spending of R25 million (20.79%) against the spending plan of R27 million (22.78%) (underspending) was due to lower than anticipated payments of leave gratuity for service terminations. Payment for Financial Assets. The R7 thousand expenditure incurred was due to debts written-off.

A3. COMMENTS ON THE NATIONAL STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR TO DATE: 30 JUNE 2015 Payments for Capital Assets. The actual spending of R145 million (14.77%) against the spending plan of R219 million (22.33%) (underspending) the underspending was mainly under the Item: Buildings and other fixed structures due to outstanding invoices from DPW and slow moving projects due to shortage of manganese bars and contractors who have been liquidated. The joint task team between DCS and DPW led by the Deputy Ministers of both departments is currently looking at unblocking the identified problem areas. The spending plan as at June 2015 is R200 million against the actual spending of R129 million resulting to an underspending of R71 million.

A3. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR TO DATE: 30 JUNE 2015

A3. GRAPHIC OVERVIEW OF THE NATIONAL STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR TO DATE: 30 JUNE 2015

B. IMPLEMENTATION OF RECOMMENDATIONS MADE BY THE BUDGETARY REVIEW AND RECOMMENDATIONS REPORT, DATED 31 OCTOBER 2014 As per Budget Review Recommendation Report 5.1.7 Budget cuts as directed by the Cabinet were implemented and service delivery was not hampered. Budget cuts were implemented at Head Office support functions and Regional and operational level were not directly affected as per table below. Table 1

B. IMPLEMENTATION OF RECOMMENDATIONS MADE BY THE BUDGETARY REVIEW AND RECOMMENDATIONS REPORT, DATED 31 OCTOBER 2014 Budget cuts were only implemented where there were historical trends of under expenditure against planned targets. Spending pressures occurring where cuts were made are managed as part of In Year Monitoring and funds reprioritisation. As per Budget Review Recommendation Report 5.1.8 The department also implemented and complied with National Treasury cost containment measures circular no 1 of 2013/14 with effect from 1 January 2014 on non-core items.

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