1. PSIRA 2014/15 BUDGET ANALYSIS
30 July 2014

2. Mandate NDP MANDATE & NATIONAL DEVELOPMENT PLAN (NDP)
The Private Security Industry Regulatory Authority (PSIRA) is established in terms of section 2 of the Private Security Industry Regulation Act, 2001 (Act No. 56 of 2001). The entity is mandated to regulate the private security industry and to exercise effective control over the practice of security service providers in the public and national interest.
NDP
Chapter 12 calls for the creation of safer communities by 2030 and is aligned with Government’s strategic goal to ensure that all people of South Africa are and feel safe. In line with the NDP, the Authority strives towards the promotion of a safer community through the regulation of the private security industry.

3. PSIRA is a public entity
HISTORIC OVERVIEW
PSIRA is a public entity
No direct government funding. Revenue from annual registration fees, fines issued in terms of Code of Conduct enquiries and other disbursement fees.
Financial instability
Turn around plan in 2010 initiated by the Minister of Police
Significant financial losses: 2010/11 FY recorded a deficit of R23 million
Stabilising since then – reducing the deficit
However, AG gave qualified audit opinion in 2012/13 (previous FY) because of unidentified payments received from customers, even though R81 million profit
Had been a Going Concern for past years (financially unstable)
Estimated profit of R17.4 million in 2014/15 FY
Three Deputy Directors for Finance and Administration since 2012
New corporate head office in Centurion: cost of R87 million over five years
Disposal of previous head office in Arcadia (Pretoria) – sale against the Public Finance Management Act (PFMA) as no approval from Minister was obtained.

4. Council – Accounting Authority and appointed by the Minister of Police
HISTORIC OVERVIEW
Contingent liability
Not budgeting for contingent liabilities, despite legal challenges
Biggest one: Security Industry Alliance (SIA)
Decade long failure of PSIRA to increase fees led to a massive fee increase: 75% for companies and 900% increase for individual guards employed by companies.
Despite the recommendation from Treasury to implement an inflation-related increase of 9.1% across all categories.
SIA successfully applied for an interdict not to pay, but ultimately lost the court case – appealed.
Council – Accounting Authority and appointed by the Minister of Police
Had significant challenges, but now fully constituted
Private Security Industry Regulatory Amendment Bill B27D-2012
Approved by both Houses & submitted to the President for assent on 05 March 2014
Significant amendments
The PSIRA presentation states many concerns previously raised by the Committee as resolved – these must be explained.

5. Prog.1: Administration – R92.8 million 9.5% Financial Position 2014/15
BUDGET 2014/15
Prog.1: Administration – R92.8 million
9.5%
Financial Position 2014/15
Revenue: R185.9m
Operating expenditure: R168.4m
Surplus: R17.4m
2013/14 FY – R81m surplus
Prog.2: Law Enforcement – R60.7 million
9.0%
Prog.3: Communication, training and registration – R14.8 million
9.6%
Financial figures differs in Annual Performance Plan (APP) and Estimates of Expenditure (ENE) for Programme 1 & 3
Revenue
Sales of goods and other services other than capital assets is expected to increase from R118.6m to R145.7m in 2014/15 compared to previous FY (22.2% nominal increase)
Other non-tax revenue is expected to increase from R33.9m to R38.3m in 2014/15 (12.78% nominal increase)
Transfers received is expected to increase from R1.5m to R1.8 (24.93% nominal increase)
The 2013/14 budget included a detailed breakdown of revenue estimates, like Annual fees, Registration fees and Investment income (to name a few)

6. Programme 1: Administration
PERFORMANCE INDICATORS, TARGETS AND BUDGET PER PROGRAMME
In terms of the usefulness of information, the AGSA stated in the 2012/13 Annual Report that many targets were not specific, not measurable and not well defined
The Authority introduced several new targets to improve
Programme 1: Administration
To have a Funding Policy
Several indicators on Corporate Governance and IT
Questions:
Online account payment
Bi-annual review on bad debts
Target for PFMA checklist
Programme 2: Law Enforcement
Targets mostly increased
New target for compliance to minimum standards
Many targets omitted, like recruitment of additional inspectors, training for inspectors and reporting to other agencies
Completion of firearms audit

7. Programme 3: Communication, Registration and Training
PERFORMANCE INDICATORS, TARGETS AND BUDGET PER PROGRAMME
Programme 3: Communication, Registration and Training
Consists of almost entirely new performance indicators and targets
Was the Communication policies developed and implemented in 2013/14
Elaborate on the 12 awareness campaigns
The target for Sectoral determination should be explained
Accreditation of training
Research: two topics to be identified during 2014/15. The Authority states that this is a new indicator, but was included in previous APPs with a target of four topics to be identified. Why was the target changed? And the identification of topics are not a service delivery output. When will the research products be finalised.
The Authority should expand on the four surveys to be completed.

8. Approved establishment of 278 posts 222 funded posts
PERSONNEL
Approved establishment of 278 posts
222 funded posts
203 posts filled in 2012/13
220 posts filled in 2013/14
243 post filled in 2014/15
Estimated to have 280 posts filled in 2016/17
Against the approved establishment of 278 posts
68 vacancies at November 2013
Increased positions in salary levels 7-10 ( positions)
Should include a comprehensive breakdown of the staff establishment of each regional and provincial office
Also a comprehensive personnel breakdown per programme
No information on proposed training and skills development

9. Nicolette van Zyl-Gous Researcher: PC on Police 021 403 8416