1. Portfolio Committee on Police
Briefing: 1st Quarter Financial Report 2013/14
17 SEPTEMBER 2013

2. Government’s twelve outcomes2
1. Improved quality of basic education 2. A long and healthy life for all South Africans 3. All people in South Africa are and feel safe 4. Decent employment through inclusive growth 5. A skilled and capable workforce to support an inclusive growth path 6. An efficient, competitive and responsive economic infrastructure network 7. Vibrant, equitable and sustainable rural communities with food security for all 8. Sustainable human settlements and improved quality of household life 9. A responsive, accountable, effective and efficient local government system 10. Environmental assets and natural resources that are well protected and continually enhanced 11. Create a better South Africa and contribute to a better and safer Africa and World 12. An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship

3. What informs the Strategic Direction... Outcome 3 Priority Outputs
Output 1: Reduce the overall levels of serious crime in particular contact and trio crimes.
Output 2: A more effective Criminal Justice System.
Output 3: Reduction in corruption within the JCPS Cluster combated to ensure its effectiveness and its ability to serve as deterrent against crime.
Output 4: Perceptions of crime among the population managed and improved.
Output 5: Level of corruption reduced thus improving investor perception, trust and willingness to invest in South Africa.
Output 6: South Africa’s borders effectively safely guarded and secured.
Output 7: Integrity of identity and status of citizens and residents secured.
Output 8: Cyber crime combated. 3

4. What informs the Strategic Direction...4
10 Priorities of Minister
SAPS strategic priorities as included in the Strategic Plan and Annual Performance Plan

5. Classification systems5
Programmes represent the general purposes (objectives) on which funds are expended
Items represent the estimated expenditure on goods and services required in pursuance of a department’s objectives (Economic classification)

6. Programme classification
Programme spending:
Amounts as at 30 June 2013 6
Programme classification
Estimates
Expenditure
30 June 2013
% Spend
R'000
Programme 1: Administration
17,348,633
3,678,776
21.2%
Programme 2: Visible Policing
31,539,683
7,881,237
25.0%
Programme 3: Detective Services
14,348,540
3,462,097
24.1%
Programme 4: Crime Intelligence
2,715,335
661,953
24.4%
Programme 5: Protection & Security Services
1,964,927
507,783
25.8%
TOTAL
67,917,118
16,191,846
23.8%
( Linear benchmark for 3 months of financial year = 25.0%)

7. Programme spending : Graphical illustration7
Key spending trends for Vote in total and per programme in line except programmes 1 and 3 where capital works and CJS Revamp are below linear benchmark.

8. Economic classification of Payments Definitions and explanations of items8
Current Payments (Funds directly spent by departments.)
Compensation of employees (Biggest spending category comprising ±70% of total budgeted spending essentially to pay salaries and contributions to pension funds and medical benefits.
Goods and services (Operational expenses are provided for e.g fuel, oil, small tools/equipment, travel, subsistence, communication, uniform etc.)
Transfers and subsidies (Funds transferred to other institutions and individuals. In other words it includes all unrequited payments made by department – “does not receive anything directly in return for the transfer to the other party”)
To: *Provinces and municipalities (Mostly for the payment of vehicle licenses.)
*Departmental agencies (e.g Payment to SETA)
*Households (This category reflects funding for discharge/retirement payouts, death grants, medical treatment of detainees, injury on duty, civil claims etc.)
Payments for capital assets (Goods that can be used continuously for at least one year and from which future economic benefits or potential are expected to flow.)
Buildings and other fixed structures (Funding for capital infrastructure creation.)
Machinery and equipment above R5 000 (Mostly to provide for the purchasing of new vehicles other equipment.)

9. Economic classification: Amounts as at 30 June 20139
Item classification
Estimates
Expenditure
30 June 2013
% Spend
R'000
Current Expenditure
64,296,837
15,679,932
24.4%
Compensation of Employees
50,416,704
12,972,681
25.7%
Goods & Services
13,880,133
2,707,251
19.5%
Transfers & Subsidies
552,390
172,589
31.2%
Provincial & Local
27,963
7,533
26.9%
Departmental agencies
30,713
7,639
24.9%
Households
493,714
157,417
31.9%
Payment for capital assets
3,067,711
337,727
11.0%
Buildings & Fix structures
1,036,884
111,870
10.8%
Machinery & Equipment
2,030,567
225,857
11.1%
Biological assets
260
0.0%
Financial transactions in assets and liabilities
1,598
TOTAL
67,916,938
16,191,846
23.8%

10. Overview of spending performance10
Although indicative of nature, the expenditures of each quarter in a financial year, will not be precisely equal.
Total cumulative spending in the Vote comprises 23,8% of allocated budget after 3 months which is similar to previous years
Compensation of Employees actual spending for period comprises 25,7% of allocated budget and is fairly on course
Spending on Goods and Services comprises 19,5% of allocated budget
Criminal Justice System Revamp spending is below linear benchmark
Spending pressures are being experienced as a result of the increases in the price of fuel and oil
Transfers and subsidies in line with linear benchmark
Payments for Capital Assets comprises 11,0 % of allocated budget
Buildings and Infrastructure lower than expected
Machinery and equipment historical spending tendencies reflect increased spending during the latter part of the financial year as delivery of vehicles (major portion) takes place. (This is a normal trend and under expenditure of this item is not a real risk.)

11. Capital spending : Graphical illustration of previous years11
2013/14 – 1st Quarter = 11,0%
(Low 1st Quarter is similar to previous financial years)
However, delivery arrangements in quarters 2, 3 and 4 improved in 2012/13 financial year

12. Comparison of 1st quarters of previous financial years (Cumulative)12

13. Capital Works and devolved funds from Public Works13
Category
Estimates
R’000
Actual
30 June 2013 %
Spend
Maintenance and Property rates
22.4%
Municipal services
25.2%
Property leases
16.8%
Sub-total
21.3%
Capital Works
10.7%
Total
18.6%
Office accommodation reflects normal trends and in line.
Spending on leases represents two claims for April and May 2013, whilst June 2013’s claim was paid in July 2013 (subsequent month)
Capital works below linear benchmark.

14. Capital Works – Steps taken on low spending pattern...14
Project Task Teams established.
1ST Quarter Assessment in process.
Project Office at SAPS to oversee all projects.
NDPW interaction also on high level.
NDPW dedicated technical experts (Architects, QS, etc)

15. Integrated Justice System (IJS) and Criminal Justice System (CJS) Revamp15
Category
Estimates
R’000
Actual
30 June 2013 %
Spend
Criminal Justice System Revamp (P3)
16.8%
Integrated Justice System (P1)
11 901
3.8%
Total
14.8%
Effective from 2013/14 financial year National Treasury introduced conditions for utilization of funding:
Report required detailing projects, funding allocations, project plans and timelines
Quarterly reporting on expenditure and project implementation
Spending only allowed once Treasury notice is received
Spending progress lacking at time of adjustments estimate - funds to be declared as savings

16. Programme 1: Administration Spending performance16
Subprogrammes
Estimates
R’000
Actual
30 June 2013
% Spend
Ministry
27 656
4 923
17.8%
Management
25 323
22.6%
Corporate Services
21.2%
Office accommodation
21.3%
TOTAL
Below linear benchmark mainly as the result of Capital Works in the property environment and IJS

17. Programme 2: Visible Policing Spending performance17
Subprogrammes
Estimates
R’000
Actual
30 June 2013
% Spend
Crime Prevention
25.0%
Border Security
25.7%
Specialised Interventions
24.8%
TOTAL
In line with a linear benchmark

18. Programme 3: Detective Services Spending performance18
Subprogrammes
Estimates
R’000
Actual
30 June 2013
% Spend
Crime Investigations
25.2%
Criminal Record Centre
21.9%
Forensic Science Laboratory
21.1%
Specialised Investigations
23.5%
TOTAL
24.1%
Quite in line with a linear benchmark, except for CJS impacting at Forensic Science Laboratory and Criminal Record Centre

19. Programme 4: Crime Intelligence Spending performance19
Subprogrammes
Estimates
R’000
Actual
30 June 2013
% Spend
Crime Intelligence Operations
24.5%
Intelligence and Information Management
24.3%
TOTAL
24.4%
In line with a linear benchmark

20. Programme 5: Protection and Security Services: Spending performance20
Subprogrammes
Estimates
R’000
Actual
30 June 2013
% Spend
VIP Protection Services
28.1%
Static and Mobile Security
24.7%
Government Security Regulator
91 548
23 393
25.6%
Operational Support
45 517
22.4%
TOTAL
25.8%
In line with a linear benchmark

21. 21
Thank you