1. DOJ&CD Portfolio Committee
3 May 2006

2. AGENDA 2004/05 - Financial Performance
2005/06 – Budget and Expenditure Overview (Unaudited /
Preliminary Information)
- UPP’s and reprioritisation
MTEF Allocations

3. 2004/05 - FINANCIAL
PERFORMANCE

4. 2004/05 ANNUAL REPORT OVERVIEW
Final Appr Actual exp Variance
R’000 R’000 R’000
DOJ & CD R R R
Statutory* R R (R )
Total R R (R )
* Judges Remuneration and Allowances

5. 2004/05 ANNUAL REPORT OVERVIEW
Programme Final Appr Actual Variance
(after exp
virement)
R’000 R’000 R’000
1. Administration R R R
2. Court Services R R R
3. State Legal Services R R R
4. NPA R R R
5. Auxiliary Services R R R

6. 2004/05 ANNUAL REPORT OVERVIEW
Economic Final Appr Actual exp Variance
classification (after
virement)
R’000 R’000 R’000
CURRENT
Compensation of
Employees R R R
Goods & Services R R R
Financial Transactions
in Assets & Liabilities R R R

7. 2004/05 ANNUAL REPORT OVERVIEW
Economic Final Appr Actual Variance
classification (after
virement)
R’000 R’000 R’000
TRANSFERS & SUBSIDIES
Prov & Municipalities R R R
Dept agencies &
Accounts R R R
Foreign gov & intern
Organisations R R R
Households R R R

8. 2004/05 ANNUAL REPORT OVERVIEW
Economic Final Appr Actual Variance
classification (after
virement)
R’000 R’000 R’000
PAYMENT ON CAPITAL ASSETS
Buildings & other fixed
Structures R R R
Machinery &
Equipment R R R
Software & other
Intangible assets R R R

9. UPP’s AND REPRIORITISATION NOTE: UNAUDITED / PRELIMINARY INFORMATION
2005/06 - BUDGET AND
EXPENDITURE OVERVIEW
&
UPP’s AND REPRIORITISATION
NOTE: UNAUDITED / PRELIMINARY INFORMATION

10. 2005/06 – Financial Performance
R 309 million – Year to date underspending (26 April 2006)
R 289 million – Roll-over request to NT
R 20 million – Surplus to be surrendered (0.37% of Departmental Budget)

11. 2005/06 – Financial Performance
R120 million anticipated underspending as at 7 Feb 2006
Reduced to R 20 million, as at 26 April 2006, due to the finalisation of projects resulting in increased commitments (Roll-overs)

12. 2005/06 Budget & Expenditure Overview

13. 2005/06 Budget & Expenditure Overview
Budget allocations (Blue) include marginally funded projects
UPP’s (Red) – Unfunded Priority Projects
Registered MTEF process
Updated regularly
Changes as costing information becomes firm (Process of estimation & investigation before costing becomes final)
Dynamic process
Underspending due to various reasons
Process of Reprioritisation – moving projects and budgets out of blue and move projects and expenditure from red to blue

14. 2005/06 BUDGET RE-PRIORITISATION
Branch / Programme
Details of bid / re-allocation Rm
Court Services
X ray machines / metal detectors 35
Transcription Services
136.8
Burglar proofing 18
Masters
Office furniture and vehicles 6
Overspending on compensation 15
of employees (job upgradings
implemented without funds)
State Attorney Offices
Kimberley (new office) 7
Furniture and office equipment 10

15. 2005/06 BUDGET RE-PRIORITISATION Details of bid / re-allocation
Branch /
Programme
Details of bid / re-allocation Rm
ISM
DNS roll-out phase III 40
Family Advocates
Office equipment, computers and vehicles
3.5
Public Protector
High Profile Cases & JYP
implementation
SIU
Vehicles, access control, laptops,
5.05
software licences etc

16. 2005/06 BUDGET RE-PRIORITISATION
Branch / Programme
Details of bid / re-allocation Rm
LAB
Judicare, vehicles, computers,
13.22
software licences etc
NPA
State Attorney fees, GG accounts, 77
specialised and other vehicles,
computers etc HR
Internship Programme 10
Total
re-allocated
380.07

17. 2005/06 Budget & Expenditure Overview

18. 2005/06 Budget & Expenditure Overview
High expenditure in last quarter of financial year due to –
Capital Works payments (DPW)
Payments for software licenses
Government Garage payments
Computer Hardware (DNS)
Payments for Professional Service Providers
Authorised write-offs

19. 2005/06 Budget & Expenditure Overview

20. 2005/06 Budget & Expenditure Overview

21. 2005/06 Budget & Expenditure Overview
MAJOR REASONS FOR UNDERSPENDING
Savings on personnel because of vacancies and staff turnover. The approval of the framework for court managers in September 2005 resulted in most court management position only being filled now;
Magistrates salaries direct charge against Revenue Fund w.e.f. 1 April 2005;
The Monies in Trust project – delays in the negotiation and final approval/s stages;
Savings in operational cost because of delays in appointments;
Infrastructure projects still in progress (Court building, maintenance and upgrading);
Government and departmental priorities not yet finalised such as the finalisation of the Children’s Bill, the Child Justice Bill, the Sexual Offences Bill; and
Delays in the procurement processes.

22. MTEF ALLOCATIONS

23. MTEF Allocations 2005/06 – 2008/09

24. Observations on 2006 ENE Allocations
Between 2002/03 and 2008/09, the department’s budget, including statutory amounts, is expected to increase at an average annual rate of 11,2 per cent, from R4,7 billion to R8,9 billion.
The largest part of this increase goes towards increasing personnel capacity and providing services, hence the relatively large increases in the Court Services and National Prosecuting Authority programmes.
The 2006 Budget sets out additional allocations of R495 million for 2006/07, R722 million for 2007/08 and R1,1 billion for 2008/09 mainly for spending on the policy priorities of improving access and increased capacity, but also for an increase in the statutory provision for judges’ and magistrates’ salaries.
From April 2006, the department has taken responsibility for accommodation costs which were devolved from the Department of Public Works.  [R309,8 million in 2006/07, R344,9 million in 2007/08 and R369,4 million in 2008/09]

25. Observations on 2006 ENE Allocations
Over the MTEF, there is a relatively large increase in expenditure on the Lower Court subprogramme, which accounts, on average, for 70,5 per cent of this programme’s budget, from R1,5 billion in 2005/06 to R2,3 billion in 2008/09, an average annual rate of 15,8 per cent. This will go towards improving service delivery, integrating the management of cases and people through the justice chain, human resources development and filling vacancies.
The increase in expenditure on the Capital Works subprogramme, from R268,1 million in 2006/07 to R308,3 million in 2008/09, is to fund the building of new courts and the rehabilitation of existing court infrastructure.
Additional allocations of R34 million in 2006/07, R 61 million in 2007/08 and R92,9 million in 2008/09 are for improving access to the services of the Guardian’s Funds and for deceased and insolvent estate services.

26. Regional Budget Allocation (Court Services)

27. Transfer payments - Public Entities and Constitutional Institutions

28. Transfer payments - Public Entities and Constitutional Institutions
Within the additional amounts allocated in the
2006 Budget, R75 million, R79 million, and
R129 million have been provided for each of the
2006 MTEF years to –
increase human resources capacity in the Legal Aid Board;
increase legal representation for children;
increase capacity in the office of the Public Protector, the Special Investigating Unit, the Commission on Gender Equality and the South African Human Rights Commission.

29. Allocations to National Prosecuting Authority

30. Allocations to National Prosecuting Authority
Within the additional amounts allocated in the
2006 Budget, R145 million, R232 million,
and R384,8 million have been provided for each of
the 2006 MTEF years to facilitate:
the rollout of specialised courts;
the appointment of additional prosecutors;
implementation of job evaluation results in the National Prosecuting Authority;
special projects on organised crime syndicates and cyber crime, and
enhancing capacity in the asset forfeiture and witness protection units.

31. THANK YOU