1. INDEPENDENT POLICE INVESTIGATIVE DIRECTORATE
FINANCIAL YEAR 2012/13
BUDGET ANALYSIS
Report

2. Objectives of Analysis
IPID 2012/13 Budget Analysis
Can budget be reprioritised to fully capacitate IPID required human capital
Can the budget be reprioritised to address current spending pressures
Can the budget be reprioritised to encourage efficiencies and promote cost cutting measures
Looked at each economic classification

3. Budget Analysis Fin Year 2012/13
HEADCOUNT – ESTABLISHMENT
PERSONNEL COSTS
ADDITIONAL COSTS
BUDGET ALLOCATION COMPARISON
GOODS AND SERVICES (12/13) BUDGET BREAKDOWN
CONTRACTUAL OBLIGATIONS
EXPENDITURE
WAY-FORWARD

4. ESTABLISHMENT
CURRENT POSTS AS PER STABLISHMENT IN LINE WITH 2012/13 ENE:
349
FILLED POSTS AS AT END OF AUGUST 2012:
291
VACANT POSTS AS AT END OF AUGUST 2012:

5. PERSONNEL COST – 12/13 2012/13 BUDGET APPROPRIATION 196 961 000.00
APPROVED BUDGET : COMPENSATION – 12/13
- FILLED POSTS: ACTUALS - 5 MTHS (APR-AUG)
- FILLED POSTS: PROJECTIONS – 7 MTHS (SEP-MAR)
LESS: PROJECTED EXPENDITURE
VARIANCE
LESS: ADDITIONAL COSTS:
2012/13 FIN YEAR SURPLUS/DEFICIT
58 VACANCIES ( = 58) IN 3 MONTHS
TOTAL SHORTFALL

6. Budget allocation comparison to previous financial year
Previous Fin Year
Adjusted Budget
2011/12.
Budget allocation 2012/13.
Variance 2012/13
Variance in % 2012/13
Programmes
R`000 %
1. Administration
60 873
92 850
31 977
53%
2. Investigation and Information Management
73 246
98 755
25 509
35%
3. Legal Services
19 415
5 356
-28%
Total Allocation Per Programme
43 427
28%
Economic Classifications
Compensation of employees
78 448
95 165
16 717
21%
Goods and services
70 087
95 925
25 838
37%
Transfers and subsidies 87 95 8 9%
Payments for capital assets
4 912
5 776
864
18%
Total Per Economic Classifications
The current financial year`s budget allocation was increased by 28% which translate to R43 million in monetary value for implementation of IPID.
Out of R43 million increase, 21% was allocated to the Compensation of employees with 37% to Goods and services and the remaining has increased both Transfers and Capital assets by 9% and 18% respectively.
The total allocation for Goods & Services reflect a substantive growth in the financial year 2012/13.

7. Goods & Services and Compensation of employees comparison over Three (3) financial years:
Economic Classifications
2010/11
R`000
2011/12
2012/13
Compensation of employees
71 752
81 447
95 165
Goods and services
53 924
68 252
95 925
Analysis:
Compensation of employees has increased by 10%,14% and 17% in the financial years 2010/11, 2011/12 and 2012/13 respectively.
An allocation of Goods and services has shown a continuous growth from 46% in 2010/11 to 27.% in 2011/12 and 41% in the current financial year (2012/13).

8. Allocation Analysis

9. 12/13 G & S Allocation Breakdown
ITEMS
R`000
Assets less than 5000
2 002
Audit Cost
2 356
Communication
5 916
Computer Services
7 112
G – Fleet services
4 408
Lease payments
30 292
Property Payments
8 263
Travel and subsistence
19 267
Training development
1 411
Operating Expenditure
1 876
Administration
2 094

10. Contractual obligations
Service Description R`
Annual Fees
Security Services
Cleaning Services
G - fleet
Office Rentals (Leases)
Labour Devices - Photocopiers
Other contracts
TOTAL
The total annual projected expenditure for all contractual obligations is 28% of the total Goods and services allocation.

11. Projected Cost Comparison: GG vs. Subsidised Vehicles
Province
Number of GG vehicles
GG projected cost (tariffs)
Number of subsidised vehicles
Subsidised vehicles projected cost (capital and maintenance)
Eastern Cape 10 1
50 000
Free State 8 6
Gauteng 5
KwaZulu-Natal 9 7
Limpopo 4
Mpumalanga
Northern Cape
42 000
North West
Western Cape 2
Head Office 13 -
Total 74 34
The above projections exclude fuel and other costs.

12. Goods and Services Budget and Expenditure per Programme for period ending August 2012
Exp & Comm.
Variance
Administration
Inv. & Inf. Man
Legal Services
Total per Prog.
30% of the G & S expenditure was incurred in the Apr – August 2012 (5 months) with R5,8 million monthly spending on average.
70% which translates to R9.5 million spending per month on average for the remaining 7 months (Sep 12 – Mar 13) of the current financial year?

13. G & S Budget and Exp per Prov.
OFFICE
BUDGET
EXP & COMM
VARIANCE
PECENTAGE
Limpopo
22.77%
Western Cape
11.88%
Northern Cape
25.38%
Gauteng
9.81%
Kwazulu -Natal
30.17%
Free State
17.44%
Eastern Cape
16.86%
Mpumalanga
19.51%
North West
18.00%
TOTAL
19.55%

14. Way-forward Put Internal Control measures on overtime claims - PROG 2;
- Introduce monthly request / as at when required
- Revisit stand – by allowance
- Review Policies (Overtime, S & T etc..)
Put overtime moratorium on PROGS 1 & 3;
- Overtime budget shift to salaries
Shifting of funds from Goods and Services (considering the spending trends) to fund the anticipated shortfall in Compensation of Employees to cover the structure as approved by Minister;
Filling of the vacant Posts (58);
Minimum percentage of performance bonus to all staff members;
Prioritise on procurement of equipment ;
Communicate cost cutting measures;

15. Way-forward continued.
Apply the same principle (shifting of funds) over the MTEF period in order to correct the baseline;
Consider centralisation of payments for key contractual obligations such as Leases, GG, Cleaning Services to Auxiliary services;
Introduce control measures on S & T expenditure and other non core items;
Review a policy/guideline on usage of GG vehicles.
Negotiate reasonable office rental in line with CPI where possible.
Reviewing of the 13/14 financial year Structure will be discussed at Lekgotla in line with budget allocation.

16. Conclusion