1. BUDGET PRESENTATION TO THE SELECT COMMITTEE ON SOCIAL SERVICES
Building DHA as a Security Department 11
BUDGET PRESENTATION TO THE SELECT COMMITTEE ON SOCIAL SERVICES
24 APRIL 2012

2. PRESENTATION OUTLINE Planning and Budgeting Process
Additional Funding request
DHA allocation over the MTEF period
Budget allocation: 2011/12 vs 2012/13
Budget allocation: Programmes
Budget allocation per Province
Estimates of National Expenditure
Challenges
Budget vs Expenditure 2009/10 – 2011/2012

3. PLANNING AND BUDGETING PROCESS33
Building DHA as a Security Department
PLANNING AND BUDGETING PROCESS
The planning and budgeting process started with the development of the Strategic Plan which covers the three years of the Medium Term Expenditure Framework (MTEF).
The plans are then broken down into priorities for each of the three years, which is called Annual Performance Plan
Once the planning cycle is complete, that is when the budgeting process starts
The Budgeting process starts with a costing of the Key Performance Area of the Strategic and Annual Performance Plan (APP) on the following basis:
Compensation of employees is calculated using the incremental budgeting approach (meaning it takes the compensation of the current year multiplied by the inflationary increase as determined by National Treasury) plus any additional staff needed to implement the APP
Contractual obligations (e.g. leases) is calculated based on the escalation clause in the agreements
Other operating costs (e.g. telephone) is also calculated on the incremental budgeting approach
All other expenditure is calculated using zero based budgeting

4. PLANNING AND BUDGETING PROCESS
Building DHA as a Security Department 44
PLANNING AND BUDGETING PROCESS
Once the costing is complete, the Department submits its budget request to National Treasury for funding of its Plan. For the MTEF 2012/13 to 2014/15, the Department requested the following and the National Treasury Allocation was as follows:
NOTES
Re-prioritisation was done within the budget to ensure that all priorities included in the Strategic Plans are funded within the above allocation.
The R110-m has been allocated to DPW, however it is earmarked specifically to Home Affairs. In 2012/13 the allocated amount will be used to acquire office space at the maritime border facilities and for improvements at several border posts. For the remainder of the MTEF the amount will be used for the construction of residential space for employees and additional office space to replace the use of tents at the Lebombo, Beitbridge and Maseru Border Posts.

5. ADDITIONAL REQUEST TO NT FOR THE MTEF55
Building DHA as a Security Department
ADDITIONAL REQUEST TO NT FOR THE MTEF
DESCRIPTION OF SERVICES REQUIRED ADDITIONAL FUNDING
2012/13
R’000
2013/14
2014/15
Re-training of immigration and civic officials on security awareness
10 000
10 600
11 236
Security upgrade
30 000
5 000
Profiling Border Community Immigrants and strengthening Stakeholder Forum
20 000
Advance Passenger Processing System
Capacity improvement:
54 714
57 997
61 477
– Immigration Affairs (282 posts)
47 310
50 149
53 158
– Counter Corruption (19 posts)
7 404
7 848
8 319
Financial management improvement
35 000
37 100
39 326
Deportation
Building Project for new DHA Head Office –
DHA Modernisation (Previously known as WAIO)
SUB TOTAL OF BUDGET PROCESS REQUEST VOTE 4

6. ADDITIONAL REQUEST TO NT FOR THE MTEF (cont…)
DEPARTMENT OF HOME AFFAIRS
ADDITIONAL REQUEST TO NT FOR THE MTEF (cont…)
DESCRIPTION OF PROJECTS
2012/13
R’000
2013/14
2014/15
Create capacity for effective and efficient Maritime Ports and Border Management
22 579
16 200
20 200
Implementation of a new model for effective and efficient Refugee Status Determination
28 000
22 000
13 000
Relocation of Refugee Reception Offices towards the Borderline
80 000
Law Enforcement, Monitoring and Compliance - Improve systems records, turn rail stations into proper ports of entry, improve tracing and analysis functions, porous borderline (informal crossings)
Recruitment and training of new Immigration Officers (expansion of OR Tambo pilot)
40 000
50 000
55 000
Rollout of Smart Card
SUB TOTAL OF POST RETREAT REQUEST
TOTAL ADDITIONAL FUNDS REQUESTED FOR VOTE 4 6

7. Building DHA as a Security Department77
Building DHA as a Security Department
DHA BUDGET 2012/13 to 2014/15
NOTES
The major contributors to the decrease from 2011/12 to 2012/13 relates to once-off funding from National Treasury to cover the shortfall in the production cost of passports (R327 Million as well as the R234 million decrease in IT Modernisation (previously known as WAIO) budget. Only R314 million has been allocated for IT Modernisation as against the R548 million previously allocated.
No funding allocated for passports as a Trading Account has been established for all passport related revenue and expenditure in line with the National Treasury recommendation.

8. DHA BUDGET 2012/13 to 2014/15 ECONOMIC CLASSIFICATION88
Building DHA as a Security Department
DHA BUDGET 2012/13 to 2014/15 ECONOMIC CLASSIFICATION
Notes
The compensation of employees budget is calculated on total of 10, 775 funded posts.
The department is re-prioritsing its budget to ensure that sea and air ports of entry are adequately capacitated.

9. BUDGET ALLOCATION: 2011/12 vs 2012/1399
Building DHA as a Security Department
BUDGET ALLOCATION: 2011/12 vs 2012/13
ALLOCATED BUDGET
2011/12
R’000
2012/13
BASELINE AMOUNT
LESS EARMARKED FUNDS
( )
( )
Public Entities Allocation
( )
( )
IT MODERNISATION (previously known as WAIO)
( )
( )
DHA OPERATIONAL BUDGET
UNAUTHORISED EXPENDITURE OF 2005/06 (The 2012/13 budget should be cut to make provision for this expenditure)
Total unauthorised expenditure approved without funding is R99,883 million, but R53 million will come out of future allocations.
(53 003)
AVAILABLE FOR DHA
Border post infrastructure (allocated to the DPW vote)
NET ALLOCATION

10. BUDGET : 2012/13 – PER PROGRAMME
Building DHA as a Security Department
BUDGET : 2012/13 – PER PROGRAMME

11. BUDGET : 2012/13 – ALLOCATION PER PROVINCE
Building DHA as a Security Department
BUDGET : 2012/13 – ALLOCATION PER PROVINCE

12. ESTIMATE OF NATIONAL EXPENDITURE 2012/13
IT Modernisation has been budgeted under Transversal IT Projects (R314,862,000)
Over the MTEF, the following projects will be completed: live capture functionality for identity documents and passports, the cleaning of the national population register; core systems integration of civics and immigration; the visa and permitting system, the rollout of the movement control system to 30 remaining ports of entry. 1

13. ESTIMATE OF NATIONAL EXPENDITURE 2012/13

14. ESTIMATE OF NATIONAL EXPENDITURE 2012/13

15. Building DHA as a Security Department
Building DHA as a Security Department
CHALLENGES
Insufficient funding for Advanced Passenger Processing system (only R50-m allocated)
The implementation of the Border Post Infrastructure is in conjunction with DPW. It is not solely in the hands of the DHA
Inadequate capacity within sea and air ports of entry
Financial management capacity both skills and human resources

16. (Over)/ Under-spending Preliminary Expenditure as at 31/03/2012
BUDGET vs. EXPENDITURE 2009/ /12
Programme
2009/10
2010/11
2011/12
Budget
Expenditure
(Over)/ Under-spending
Preliminary Expenditure as at 31/03/2012
R'000
Administration
1,515,145
1,498,687
16,458
1,516,111
1,692,261
(176,150)
1,995,984
1,937,897
58,087
Citizen Affairs
1,382,559
1,383,104
(545)
1,535,123
1,793,479
(258,356)
3,202,059
3,128,761
73,298
Immigration Affairs
1,054,228
1,001,766
52,462
1,191,801
1,444,599
(252,798)
652,771
630,653
22, 218
Transfers to Agencies
1,311,852 –
1,591,355
Total
5,263,784
5,195,409
68,375
5,834,390
6,521,694
(687,304)
5,850,814
5,697,311
153,503
Notes for 2011/12
Included in the savings is earmarked funds of R46 million for the printing of passports.
A request to roll over R53 million will be submitted to National Treasury to fund the unauthorised expenditure relating to 2005/06 financial year approved without funding.
Therefore the preliminary saving is R54,503 million

17.
Building DHA as a Security Department
THANK YOU