PRELIMINARY IYM PRESENTATION: 31 MARCH 2011

NATIONAL STATE OF EXPENDITURE FOR THE YEAR : 31 MARCH 2011

COMMENTS ON THE NATIONAL STATE OF EXPENDITURE FOR THE YEAR PER PROGRAMME: 31 MARCH 2011 The final overall expenditure for the year of the Department as at 31 March 2011 was R14,702 billion (95.30%) against the annual budget of R15,427 billion resulting in R726 million (4.70% of allocation) [under-spending] against the annual budget. Factors that contributed to the under-spending per programme are as follows: The actual spending of R4.081 billion (95.47%) (under-spending) against the annual budget of R4.274 billion under the Programme Administration is mainly on Compensation of Employees for the advertised posts that are not yet filled, on Goods and Services for SITA accounts because of invoices that were not processed due to late deliveries and the MISP contracts that were not signed. The actual spending of R4.989 billion (97.31%) (under-spending) against the annual budget of R5,127 billion under the Programme Security is mainly on Compensation of Employees because of the advertised posts that are not filled yet. The actual spending of R1,417 billion (102%) (over-spending) against the annual budget of R1,386 billion under the Programme Corrections is mainly on Compensation of employees because more posts were filled than what was funded this will be made good during the last Virement exercises.

COMMENTS ON THE NATIONAL STATE OF EXPENDITURE FOR THE YEAR PER PROGRAMME: 31 MARCH 2011 The actual spending of R1,681 billion (97.86%) (under-spending) against the annual budget of R1.718 billion under the Programme Care is mainly on Compensation of Employees because of the advertised posts that were not filled yet. The actual spending of R520 million (96.44%) (under-spending) against the annual budget of R539 million under the Programme Development is mainly on Goods and Services because of the low spending on workshop and agricultural materials. The actual spending of R514 million (102.30%) (over-spending) against the annual budget of R502 million under the Programme Social Reintegration is mainly on Compensation of Employees because more posts were filled than the funded posts, this will be made good during the last Virement exercise. The actual spending of R1,500 billion (79.77%) (under-spending) against the annual budget of R1,881 billion under the Programme Facilities is mainly due to delay in construction of Brandvlei and Van Rhynsdorp prisons , delay on the appointment of consultants by DPW and slow in project implementation. A rollover of R256 million has been requested.

COMMENTS ON THE NATIONAL STATE OF EXPENDITURE FOR THE YEAR PER ECONOMIC CLASSIFICATION: 31 MARCH 2011 The actual spending of R9.506 billion (95.98%) (under-spending) against the annual budget of R9.904 billion on Compensation of Employees is mainly due to the vacancies which the department did not fill yet, OSD for psychologists because their resolution was not concluded, natural attrition and savings on merits awards, The actual spending of R4.030 billion (97.56%) (under-spending) against the annual budget of R4.131 billion under Goods & Services is mainly due to SITA accounts as invoices are not processed for payment (SITA budget is R 217 million, expenditure is R 132 million) because of late deliveries. The actual expenditure for Theft and Losses is R5.2 million resulting from special items ,management will identify savings and take a decision to write them off. The actual spending of R66 million (180.90%) (over-spending) against the annual budget of R36 million on Transfers and Subsidies is mainly due to the leave gratuity payments made to the employees as a result of the terminations of services, the over-spending will be funded from Compensation of Employees through last virement in terms of section 43 and 76(3) of PFMA and its Treasury Regulation Chapter 6 paragraph 6.3.1(d). The actual spending of R1.095 billion (80.71%) (under-spending) against the annual budget of R1.356 on Payments for Capital Assets is mainly due to the low billing from the Department of Public Works for capital works projects that were not completed, delay on the appointment of consultants and slow in project implementation.

STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR : 31 MARCH 2011

STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR : 31 MARCH 2011

STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR: 31 MARCH 2011

STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR: 31 MARCH 2011

Business Unusual: all hands on deck to detain, rehabilitate and reintegrate offenders for a safer South Africa