1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON CORRECTIONAL SERVICES
23 October 2006
National Treasury

2. Scope
1. Introduction
2. Budget / Expenditure trends
3. Personnel trends
4. Annual Report performance against plan 2005/06
5. Report of the Auditor-General 2005/06
6. Discussion

3. Introduction
Annual reports measure or track both financial and non-financial performance against targets
Interested parties study annual reports to ascertain the level of financial and non-financial performance and verify disclosure of financial position and results
Non-financial performance is critical to the success of public sector institutions as this is where the service delivery of the department is of relevance
Committees should pay attention to the emphasis of matter and explore remedial steps with the Minister or Accounting Officer

4. Introduction (cont..) Benefits of annual report analysis include:
identifying trends in performance
track the progress of performance relative to the strategic plan
determining the financial position and financial performance of the particular institution on a given date
identify if there is progress on issues of concern raised in previous reports

5. Role of Portfolio Committees Focus on the following:
(i) The technical quality of the annual reports
(ii) Whether reports cover all performance targets set out in strategic/corporate plans
(iii) The quality of performance information
The economy, efficiency and effectiveness of service delivery as measured by the performance indicators or by the AG in a performance audit, or by way of other information
Implementation of the entity’s service delivery improvement plan
Evaluating management’s explanations why service delivery was not in line with targets set in the strategic plans and budgets
Investigating under- or over expenditure, the impact on service delivery and the measures taken to comply with the Budget

6. Budget / Expenditure trends

7. Growth in DCS budget Average annual growth rate of 8,8%
Adjusted appropriation 05/06: R (7,5%)
06/07: R (7%)
07/08 MTEF subject to Cabinet approval

8. Growth in comp of employees budget
Average annual growth rate of 7,8%
Adjusted appropriation 05/06: R (2,6%)
06/07: R (5,3%)

9. Personnel costs (P120; T 5.1.3) R’000 2003/04 2004/05 (Vulindlela)
2005/06
Salaries
2,655,246
2,892,001
3,091,181
Overtime
820,289
679,723
491,758
Home owners allowance
74,928
45,983
42,563
Medical assistance
630,241
624,634
326,875

10. Budget: Comp of Employees
2003/2004
Adjusted Appropriation
Virement
Revised Allocation
Actual Expenditure
4,960,122
(7,052)
4,953,070
5,013,476
2004/2005
Final Allocation
5,381,244
15,864
5,397,108
5,135,982
2005/2006
5,862,575
(768,757)
5,093,818
5,091,829
Substantial virement in 05/06 – mainly to Capital Assets (M&E)

11. Budget: Goods & Services (P73)
2003/2004
Adjusted Appropriation
Virement
Revised Allocation
Actual Expenditure
1,477,369
5,465
1,482,834
1,512,938
2004/2005
Final Allocation
1,757,246
(38,895)
1,718,351
1,632,155
2005/2006
2,010,596
(63,635)
1,946,961
1,882,507

12. Budget: Capital Assets (P73)
2003/2004
Adjusted Appropriation
Virement
Revised Allocation
Actual Expenditure
1,065,143
1,836
1,066,979
844,239
2004/2005
Final Allocation
1,276,628
14,019
1,290,647
1,206,664
2005/2006
1,411,799
821,293
2,233,092
2,030,354
05/06 vired from Comp of Empl

13. Expenditure per Prog: 31 March 2006 (P 74 to 88)
Final
appr
Actual
exp
Under/over
spending
Percentage
Administration
2,499,979
2,462,552
37,427
98.50%
Security
3,122,480
3,051,627
70,853
97.73%
Corrections
617,172
613,560
3,612
99.41%
Care
1,029,465
1,028,059
1,406
99.86%
Development
481,361
478,337
3,024
99.37%
Social Reintegration
301,846
301,335
511
99.83%
Facilities
1,762,853
1,612,625
150,228
91.48%
Internal charges
(490,936)
(481,546)
(9,390)
98.09%
Total
9,324,220
9,066,549
257,671
97.24%
DCS requested roll-over of R122 million – funds not committed – if approved 98,5% spending

14. Final expenditure per economic classification: 31 March 2006 (P 73)
appr
Actual
exp
Under/over
spending
Percentage
Comp of employees
5,093,818
5,091,829
1,989
100.0%
Goods and services
1,946,961
1,882,507
64,454
96.7%
Interest & rent on
land 45 40 5
88.9%
Fin trans. in A&L - 
14,273
(14,273)
0.0%
Transfers and
subsidies
50,304
47,488
2,816
94.4%
Capital assets
2,233,092
2,030,412
202,680
90.9%
Total
9,324,220
9,066,549
257,671
97.2%

15. %PMG balance: 2005/06

16. Spending pattern: 2005/06

17. Deviations between departments’ approved expenditure plans & actual expenditure – 2005/06

18. Deviations between departments’ approved expenditure plans & actual expenditure – 2005/06

19. Deviations between departments’ approved expenditure plans & actual expenditure – 2005/06

20. Personnel trends

21. Personnel numbers: 31 March 2006 (P 123; T 5.2.3)
Posts: Filled: Vacant: 3 064
Vacancy rate 7,8%
Custodian personnel
Posts : Filled: Vacant: 2 334
(Vulindlela )
Vacancy rate 6,3%
Ratio custodian personnel / offender population: 1:4,3
(1:5,9)

22. Personnel appointments
DCS
SAPS
DEFENCE
Appointment Act
No of pers
PSA, 1994
461
32 980
14 415
Corr Serv Act
36 939
Police Act
Defence Act
63 443
Other 94 1 -
Total
37 494
77 858
Corrections is appointing few personnel in terms of the PSA Act. Cost savings could be achieved with regard to allowances, pension, etc.

23. HR Development (excl Comp of Empl, Transf & subs) (P 119; T 5.1.1)
DIRECTORATE / REGION (R'000)
04/05
05/06
Variation
Training needs identified (P 140; T ) 5%
Policy and External Training
7,821
6,092
(22.1%)
Core Curriculum
17,959
12,926
(28.0%)
Training Standards
711
694
(2.4%)
Functional and Management (HO)
10,210
13,076
28.1%
Western Cape
6,681
1,376
(79.4%)
NW/MP/LP
3,592
1,252
(65.1%)
E/Cape
3,719
1,300
(65.0%)
FS/NC
2,102
2,547
21.2%
Gauteng
4,168
2,447
(41.3%)
KwaZulu-Natal
3,648
2,204
(39.6%)
Seta
2,329
3,467
48.9%
Total
62,940
47,381
(24.7%)

24. Personnel comp: DCS 36 385 SAPS 155 532 (x4)
INJURY ON DUTY (P141; T 5.12)
DCS
SAPS
03/04
04/05
05/06
Basic medical attention -
736
403
4,238
Temp. total disability
154 73
Permanent disability 30 68
Fatal 6 1 84
Total
840
926
545
4,322
Personnel comp: DCS SAPS (x4)

25. Annual Report performance against plan 2005/06

26. Outputs, Indicators & Targets (P 27)
SECURITY
Output
Indicators
AR target
Actual
Security
Safe & secure
environment
% Decrease in
assault of
inmates, ADT's
staff
Fewer than
1 739
(2 080)
2 001
unnatural
deaths by
violence 41
(71) 30
escapes by
inmates
compared to
2004/05
171
(154)
112
Numbers in brackets = ENE targets

27. Outputs, Indicators & Targets – cont. (P 29 / 30)
CORRECTIONS
Output
Indicators
AR target
Actual
Personal
Corrections
Risk
assessment
& profiling of
offenders
% of offenders
risk assessed
and profiled
23 % of
Commence
06/07
Reduction in
recidivism
Recidivism rate
T / b bench-
marked in
Work
opportunities
for sentenced.
inmates
Daily average of
work
provided
More than
(dept)
and 5 300
(outside org)
3 400 (dept)
6 565 (oo)
AR contains many other indicators – Strategic Plan % of reviewed offenders awarded parole (50%) as in ENE not addressed

28. Outputs, Indicators & Targets – cont. (P 32)
CARE
Output
Indicators
AR target
Actual
Personal
Well-being
Well-being of
persons
under dept.
care
No. of staff and
offenders
trained as
master trainers
and peer HIV
Educators
M/t 420
1 254
No. of support
groups
M/t 75 49
Social work
sessions
No. of persons
participated
M/t
( )
Psychological
M/t
17 820
Spiritual care
M/t
( )

29. Outputs, Indicators & Targets – cont. (P 35)
Development
Output
Indicators
AR target
Actual
Personal
of offenders
programme
for sentenced
offenders
No. of
participating in
education
programmes
M/t
(25 000)
22 932
(remissions)
Skills
developmental
M/t
8 502
(late receipt
of funds
Labour)
No. of released
receiving
assistance
M/t
(27 100)
42 510
Important indicator re work opportunities not addressed

30. Outputs, Indicators & Targets – cont. (P 40)
Social Re-integration
Output
Indicators
AR target
Actual
Community
liaison
Supervision of
probationers
and parolees
No. of parolees
and
per supervisory
officer
F/t 30 34
% of total
absconders
traced
M/t 36%
(58%)
10,3%
Material &
financial
assistance to
needy
released
offenders
No. of persons
participated in
mass
participation
projects
M/t
96 000
Not clear if percentage of released persons attending re-integration programmes was benchmarked in 2005/06

31. Outputs, Indicators & Targets – cont. (P 43)
Facilities
Output
Indicators
AR target
Actual
Planning
Accommodation
in correctional
centres
No. of
additional bed
spaces
in 06/07 #
Building &
maintenance
Properly
planned
infrastructure
correctional
facilities
renovated 11
Upgrading of
additional
bed spaces
1 200
(1 027)
1 171
# Initial target for additional four facilities: To be occupied in 2005/06

32. Report of the Auditor-General 2005/06

33. Report of the Auditor-General: 2005/06 (P 61 onwards)
DCS received a qualified audit opinion in 2003/04, 2004/05 and 2005/06, due to amongst others:
PPP – account as operating / finance lease
Staff debt: Lack of control framework to monitor and recover debt (04/05 & 05/06)
Asset management: Insufficient capturing of and maintenance of asset register – three different computer programmes (03/04 & 04/05 emphasis of matter)
Medical expenditure: Lack of proper management framework, monitoring and reconciliation for the verification of medical aid expenditure prior to payment thereof (03/04; 04/05 & 05/06)
Housing loan guarantees: Lack of management framework monitoring controls and reconciliation

34. Report of the Auditor-General: 2005/06
Emphasis of matter lists 15 items, including:
REGULARITY AUDIT: Supply chain management
PERFORMANCE AUDIT: Official accommodation

35. Discussion