PORTFOLIO COMMITTEE ENE BUDGET ALLOCATION Introduction to Central Services Branch Building a caring correctional system that truly belongs to all Portfolio Committee ENE

Portfolio Committee ENE ENE BUDGET ALLOCATION CONTENTS Budget allocation over the MTEF period: Programme Administration Budget allocation over the MTEF period: Programme Security Budget allocation over the MTEF period: Programme Corrections Budget allocation over the MTEF period: Programme Care Budget allocation over the MTEF period: Programme Development Budget allocation over the MTEF period: Programme Social Reintegration Portfolio Committee ENE

Portfolio Committee ENE ENE BUDGET ALLOCATION CONTENTS Budget allocation over the MTEF period: Programme Facilities Cost drivers taken into account in the allocation of budget Provision of vacancy rate Amounts of budget allocation per programme over the MTEF period Amounts of budget allocation per GFS Economic Classification over the MTEF period Additional amounts allocated to the budget baseline over the MTEF period Devolved and Earmarked funds as included in the total budget allocation over the MTEF period Efficiency Gain Savings (Budget reduction) Steps taken to improve financial management Portfolio Committee ENE

1. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME ADMINISTRATION Programme Administration: Purpose The purpose of this programme is to provide the administrative, management, financial, ICT. Research, policy co-ordination and good governance support functions necessary for all service delivery by the department and in support of functions of the ministry Portfolio Committee ENE

1. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME ADMINISTRATION Programme Administration: Allocation The increase of budget from R2.8 billion; R3.1 billion; R3.3 billion and R3.6 billion respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 financial years is mainly due to the following: Allocation for Master Information System Plan (MISP) project Adjusted provision additional amount allocated for accommodation charges Portfolio Committee ENE

1. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME ADMINISTRATION Programme Administration: Allocation (continues) The decline in Management Programme Administration sub-programme is due to the efficiency gains savings budget reduction applied by National Treasury over the MTEF period. Portfolio Committee ENE

2. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME SECURITY Programme Security: Purpose The purpose of this programme is to provides for activities aimed at ensuring the provision of safe and healthy conditions for all incarcerated persons, while providing protection for personnel and the public Portfolio Committee ENE

2. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME SECURITY Programme Security: Allocation The increase in budget allocation from R3.4 billion; R3.8 billion, R4.1 billion and R4.4 billion respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 is mainly due to the following: Improvement of security in prisons Additional allocation of personnel costs for New Kimberley CC Additional allocation for the implementation of PSCBC Resolution 1 of 2007 Portfolio Committee ENE

2. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME SECURITY Programme Security: Allocation (continues) Amount allocated to compensate the department for inflation adjustment allocated in this programme. Additional allocation to fund for purchases and installation of security equipment The activities of this programme are labour intensive and personnel budget accounts for approximately 91,7% of the budget allocated in this programme over the MTEF period. Portfolio Committee ENE

3. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME CORRECTIONS Programme Corrections: Purpose The purpose of this programme is to provide needs based correctional sentence plans and interventions, based on an assessment of the security and criminal profile of individuals, targeting all elements associated with offending behavior, and focusing on the offence for which a person is sentenced to correctional supervision, remanded in a correctional centre or paroled. Portfolio Committee ENE

3. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME CORRECTIONS Programme Corrections: Allocation The increase in budget allocation from R1,064 billion; R1.1 billion and to R1.2 billion respectively over the 2008/09; 2009/10 and 2010/11 is mainly due to the following reasons: Additional allocations to the baseline made in 2005/06 to implement White Paper on Corrections projects such as risk assessment and profiling of offenders, Case Management Committees, training of staff members on unit management and phased implementation of Offender Rehabilitation Path (ORP) to ensure the effective rehabilitation of offenders Portfolio Committee ENE

3. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME CORRECTIONS Programme Corrections: Allocation (continues) Establishment of parole boards and correctional supervision also accounts for the growth in the budget of machinery and equipment. Allocation of supervisory personnel budget also accounts for the growth of budget in this programme. The decline of budget from R1,091 billion in 2007/08 to R1,064 in 2008/09 is due to funds shifted to the Programmes Development and Care to finance the approved White Paper projects implementation in 2007/08 financial year. Portfolio Committee ENE

4. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME CARE Programme Care: Purpose The purpose of this programme is to provide needs based care programmes and services aimed at maintaining the personal wellbeing of incarcerated persons in the department’s care. Portfolio Committee ENE

4. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME CARE Programme Care: Allocation The increase in budget allocation from R1,2 billion; R1,3 billion; R1.5 billion to R1.6 billion respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 is mainly due to the following reasons: Implementation of three meal system per day Provision of additional remuneration of Health care workers Portfolio Committee ENE

4. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME CARE Programme Care: Allocation (continues) Progressive Implementation of comprehensive HIV & AIDS programme nationally Donor funding received from United States President’s emergency plan for AIDS relief allocated for HIV & AIDS and syphilis prevalence survey among inmates and staff. Portfolio Committee ENE

5. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME DEVELOPMENT Programme Development: Purpose The purpose of this programme is to provide needs based personal development programmes and services to all offenders. Personal development of offenders provides programmes and services aimed at developing competencies by providing opportunities for skills and social development, including technical training, recreation, sports, education and the operation of prison farms and production workshops Portfolio Committee ENE

5. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME DEVELOPMENT Programme Development: Allocation The increase in budget allocation from R394 million; R397million; R476 million to R509 million respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 is mainly due to the following reasons: The department effort to put rehabilitation of offenders at the centre of its activities which includes amongst others, training of offenders to ensure their skills and social development in various trades aspects. Portfolio Committee ENE

Portfolio Committee ENE 6. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME SOCIAL REINTEGRATION Programme Social Reintegration: Purpose The purpose of this programme is to provide services focused on preparation of offender’s release and their effective supervision after release on parole and correctional supervision as well as direct sentences to correctional supervision and facilitating their reintegration into their communities. Community liaison provides for all services which prepare offenders for completing their sentences to facilitate their social acceptance and effective reintegration of offenders into their communities Portfolio Committee ENE

Portfolio Committee ENE 6. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME SOCIAL REINTEGRATION Programme Social Reintegration: Allocation The increase in budget allocation trend from R371 million; R386 million; R411 million to R442 million respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 is mainly due to the following reasons: Phased implementation of the social reintegration action plan which is meant to create a common understanding of social reintegration among all stakeholders, supported by systems and processes for the effective monitoring and supervision of parolees and probationers and To promote the use of community based sentence options to deal with offenders. Portfolio Committee ENE

7. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME FACILITIES Programme Facilities: Purpose The purpose of this programme is to ensure that physical infrastructure supports safe and secure custody, humane incarceration conditions, and the provision of corrective services, care, development and general administration. Portfolio Committee ENE

7. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME FACILITIES Programme Facilities: Allocation The increase of budget from R1.3 billion in 2006/07 to R1.9 billion in 2007/08 is mostly due to the R513 million roll-over of funds approved to fund the construction of Kimberley Correctional Centre project and the latter will also account for the subsequent decrease of budget from R1.9 billion in 2007/08 to R1.4 billion in 2008/09. Portfolio Committee ENE

7. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME FACILITIES Programme Facilities: Allocation (continues) The general increase of budget allocation with exclusion of an amount of R513 million roll-over of funds approved in 2007/08 financial year as mentioned-above, from R1.40 billion(R1.916 billion - R513 million); R1.44 billion; R1.7 billion to R3.4 billion respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 is mainly due to the following reasons: Additional allocation to fund for the operation of five planned PPP Correctional facilities which will provide additional 18000 bed spaces Portfolio Committee ENE

7. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME FACILITIES Programme Facilities: Allocation (continues) Funding provision for the construction of New Kimberley Correctional Centre to provide additional 3000 bed spaces on completion in February 2009. Increase in the capital budget for upgrading and renovations of the existing facilities over the medium term which will create additional 2180 bed spaces Portfolio Committee ENE

8. COST DRIVERS TAKEN INTO ACCOUNT IN THE ALLOCATION OF BUDGET Key Cost Drivers are as follows; Personnel numbers. Inmates including awaiting trial detainee totals. Supervision Cases and Parolees Implementation of White Paper projects Portfolio Committee ENE

Portfolio Committee ENE 8. COST DRIVERS TAKEN INTO ACCOUNT IN THE ALLOCATION OF BUDGET (Continued) Portfolio Committee ENE

9. PROVISION OF VACANCY RATE The vacancy rate was calculated as follows: Financed 45 674 National Treasury Allocation Letter 2006/07 Kimberley 817 New Kimberley Correctional Facility (R 50 000 for allocated for 2008/09 financial year Sub-total 46 491 Minus 5% Vacancy Rate 2 325 Total 44 166 Portfolio Committee ENE

10. AMOUNTS OF BUDGET ALLOCATION PER PROGRAMME OVER THE MTEF PERIOD 2007/08 R’000 2008/09 2009/10 2010/11 Administration 2 874 543 3 111 582 3 373 333 3 605 016 Security 3 444 847 3 873 242 4 116 254 4 433 021 Corrections 1 091 580 1 064 678 1 125 249 1 211 717 Care 1 291 561 1 394 735 1 457 670 1 601 463 Development 394 348 396 615 476 337 509 011 Social Reintegration 371 356 386 538 411 320 442 021 Facilities 1 916 174 1 444 444 1 692 301 3 448 151 Total 11 384 409 11 671 834 12 652 464 15 250 400 Portfolio Committee ENE

Portfolio Committee ENE 11. AMOUNTS OF BUDGET ALLOCATION PER GFS ECONOMIC CLASSIFICATION OVER THE MTEF PERIOD GFS Economic Classification 2007/08 R’000 2008/09 2009/10 2010/11 Compensation of employees 6 761 950 7 144 145 7 580 571 8 175 829 Goods and Services 3 094 717 3 377 210 3 693 106 4 739 849 Interest and rent on land 50 52 57 60 Transfers and subsidies 32 013 34 419 36 907 36 885 Payments for capital assets 1 495 679 1 116 008 1 341 823 2 297 777 Total 11 384 409 11 671 834 12 652 464 15 250 400 Portfolio Committee ENE

Portfolio Committee ENE 12. ADDITIONAL AMOUNTS ALLOCATED INTO THE BUDGET BASELINE OVER THE MTEF PERIOD 2008/09 R’000 2009/10 2010/11 Departmental Budget Baseline 11 365 798 12 267 765 13 045 504 Additional funds allocated to budget baseline Personnel costs New Kimberley CC 50 000 60 000 190 000 Provision for PPP Prison space 1 653 000 Res1 of 2007: Comp. of Personnel 165 243 194 217 203 928 Accommodation charges 45 970 68 948 94 021 Comp. of Personnel Inflation adj. 58 457 97 423 121 226 Non Personnel Inflation adjustment 32 366 36 911 57 653 Adjustments to baseline (Efficiency Savings) (46 000) (72 800) (114 932) Total 11 671 834 12 652 464 15 250 400 Portfolio Committee ENE

Portfolio Committee ENE 13. DEVOLVED AND EARMARKED FUNDS AS INCLUDED INTO THE TOTAL BUDGET ALLOCATION OVER THE MTEF PERIOD 2008/09 R’000 2009/10 2010/11 Devolution of funds from Public Works 849 225 1 002 778 1 144 385 Specifically and exclusively appropriated: Capital Works 679 861 897 902 913 529 Portfolio Committee ENE

14. EFFICIENCY GAIN SAVINGS (BUDGET REDUCTION Efficiency Gain savings (budget reduction) was applied to the following items of expenditure: unnecessary travel and subsistence costs; misplaced marketing and communication initiatives; entertainment costs; and Weakness in supply chain management. Portfolio Committee ENE

14. EFFICIENCY GAINS SAVINGS (BUDGET REDUCTION) Portfolio Committee ENE

15. STEPS TAKEN TO IMPROVE FINANCIAL MANAGEMENT Quarterly Budget Committee (Executive management) meetings Monthly Budget steering committee meetings Monthly financial meetings at all levels Budget blocking In Year Monitoring reporting Portfolio Committee ENE

Portfolio Committee ENE THANK YOU Renewing our Pledge: A National Partnership to Correct, Rehabilitate and Reintegrate Offenders for a safer and secure South Africa Portfolio Committee ENE