1. PORTFOLIO COMMITTEE ENE BUDGET ALLOCATION
Introduction to Central Services Branch
Building a caring correctional system that truly belongs to all
Portfolio Committee ENE

2. Portfolio Committee ENE
ENE BUDGET ALLOCATION
CONTENTS
Budget allocation over the MTEF period: Programme Administration
Budget allocation over the MTEF period: Programme Security
Budget allocation over the MTEF period: Programme Corrections
Budget allocation over the MTEF period: Programme Care
Budget allocation over the MTEF period: Programme Development
Budget allocation over the MTEF period: Programme Social Reintegration
Portfolio Committee ENE

3. Portfolio Committee ENE
ENE BUDGET ALLOCATION
CONTENTS
Budget allocation over the MTEF period: Programme Facilities
Cost drivers taken into account in the allocation of budget
Provision of vacancy rate
Amounts of budget allocation per programme over the MTEF period
Amounts of budget allocation per GFS Economic Classification over the MTEF period
Additional amounts allocated to the budget baseline over the MTEF period
Devolved and Earmarked funds as included in the total budget allocation over the MTEF period
Efficiency Gain Savings (Budget reduction)
Steps taken to improve financial management
Portfolio Committee ENE

4. 1. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME ADMINISTRATION
Programme Administration: Purpose
The purpose of this programme is to provide the administrative, management, financial, ICT. Research, policy co-ordination and good governance support functions necessary for all service delivery by the department and in support of functions of the ministry
Portfolio Committee ENE

5. 1. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME ADMINISTRATION
Programme Administration: Allocation
The increase of budget from R2.8 billion; R3.1 billion; R3.3 billion and R3.6 billion respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 financial years is mainly due to the following:
Allocation for Master Information System Plan (MISP) project
Adjusted provision additional amount allocated for accommodation charges
Portfolio Committee ENE

6. 1. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME ADMINISTRATION
Programme Administration: Allocation (continues)
The decline in Management Programme Administration sub-programme is due to the efficiency gains savings budget reduction applied by National Treasury over the MTEF period.
Portfolio Committee ENE

7. 2. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME SECURITY
Programme Security: Purpose
The purpose of this programme is to provides for activities aimed at ensuring the provision of safe and healthy conditions for all incarcerated persons, while providing protection for personnel and the public
Portfolio Committee ENE

8. 2. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME SECURITY
Programme Security: Allocation
The increase in budget allocation from R3.4 billion; R3.8 billion, R4.1 billion and R4.4 billion respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 is mainly due to the following:
Improvement of security in prisons
Additional allocation of personnel costs for New Kimberley CC
Additional allocation for the implementation of PSCBC Resolution 1 of 2007
Portfolio Committee ENE

9. 2. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME SECURITY
Programme Security: Allocation (continues)
Amount allocated to compensate the department for inflation adjustment allocated in this programme.
Additional allocation to fund for purchases and installation of security equipment
The activities of this programme are labour intensive and personnel budget accounts for approximately 91,7% of the budget allocated in this programme over the MTEF period.
Portfolio Committee ENE

10. 3. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME CORRECTIONS
Programme Corrections: Purpose
The purpose of this programme is to provide needs based correctional sentence plans and interventions, based on an assessment of the security and criminal profile of individuals, targeting all elements associated with offending behavior, and focusing on the offence for which a person is sentenced to correctional supervision, remanded in a correctional centre or paroled.
Portfolio Committee ENE

11. 3. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME CORRECTIONS
Programme Corrections: Allocation
The increase in budget allocation from R1,064 billion; R1.1 billion and to R1.2 billion respectively over the 2008/09; 2009/10 and 2010/11 is mainly due to the following reasons:
Additional allocations to the baseline made in 2005/06 to implement White Paper on Corrections projects such as risk assessment and profiling of offenders, Case Management Committees, training of staff members on unit management and phased implementation of Offender Rehabilitation Path (ORP) to ensure the effective rehabilitation of offenders
Portfolio Committee ENE

12. 3. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME CORRECTIONS
Programme Corrections: Allocation (continues)
Establishment of parole boards and correctional supervision also accounts for the growth in the budget of machinery and equipment.
Allocation of supervisory personnel budget also accounts for the growth of budget in this programme.
The decline of budget from R1,091 billion in 2007/08 to R1,064 in 2008/09 is due to funds shifted to the Programmes Development and Care to finance the approved White Paper projects implementation in 2007/08 financial year.
Portfolio Committee ENE

13. 4. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME CARE
Programme Care: Purpose
The purpose of this programme is to provide needs based care programmes and services aimed at maintaining the personal wellbeing of incarcerated persons in the department’s care.
Portfolio Committee ENE

14. 4. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME CARE
Programme Care: Allocation
The increase in budget allocation from R1,2 billion; R1,3 billion; R1.5 billion to R1.6 billion respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 is mainly due to the following reasons:
Implementation of three meal system per day
Provision of additional remuneration of Health care workers
Portfolio Committee ENE

15. 4. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME CARE
Programme Care: Allocation (continues)
Progressive Implementation of comprehensive HIV & AIDS programme nationally
Donor funding received from United States President’s emergency plan for AIDS relief allocated for HIV & AIDS and syphilis prevalence survey among inmates and staff.
Portfolio Committee ENE

16. 5. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME DEVELOPMENT
Programme Development: Purpose
The purpose of this programme is to provide needs based personal development programmes and services to all offenders.
Personal development of offenders provides programmes and services aimed at developing competencies by providing opportunities for skills and social development, including technical training, recreation, sports, education and the operation of prison farms and production workshops
Portfolio Committee ENE

17. 5. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME DEVELOPMENT
Programme Development: Allocation
The increase in budget allocation from R394 million; R397million; R476 million to R509 million respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 is mainly due to the following reasons:
The department effort to put rehabilitation of offenders at the centre of its activities which includes amongst others, training of offenders to ensure their skills and social development in various trades aspects.
Portfolio Committee ENE

18. Portfolio Committee ENE
6. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME SOCIAL REINTEGRATION
Programme Social Reintegration: Purpose
The purpose of this programme is to provide services focused on preparation of offender’s release and their effective supervision after release on parole and correctional supervision as well as direct sentences to correctional supervision and facilitating their reintegration into their communities.
Community liaison provides for all services which prepare offenders for completing their sentences to facilitate their social acceptance and effective reintegration of offenders into their communities
Portfolio Committee ENE

19. Portfolio Committee ENE
6. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME SOCIAL REINTEGRATION
Programme Social Reintegration: Allocation
The increase in budget allocation trend from R371 million; R386 million; R411 million to R442 million respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 is mainly due to the following reasons:
Phased implementation of the social reintegration action plan which is meant to create a common understanding of social reintegration among all stakeholders, supported by systems and processes for the effective monitoring and supervision of parolees and probationers and
To promote the use of community based sentence options to deal with offenders.
Portfolio Committee ENE

20. 7. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME FACILITIES
Programme Facilities: Purpose
The purpose of this programme is to ensure that physical infrastructure supports safe and secure custody, humane incarceration conditions, and the provision of corrective services, care, development and general administration.
Portfolio Committee ENE

21. 7. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME FACILITIES
Programme Facilities: Allocation
The increase of budget from R1.3 billion in 2006/07 to R1.9 billion in 2007/08 is mostly due to the R513 million roll-over of funds approved to fund the construction of Kimberley Correctional Centre project and
the latter will also account for the subsequent decrease of budget from R1.9 billion in 2007/08 to R1.4 billion in 2008/09.
Portfolio Committee ENE

22. 7. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME FACILITIES
Programme Facilities: Allocation (continues)
The general increase of budget allocation with exclusion of an amount of R513 million roll-over of funds approved in 2007/08 financial year as mentioned-above, from R1.40 billion(R1.916 billion - R513 million); R1.44 billion; R1.7 billion to R3.4 billion respectively over the 2007/08; 2008/09; 2009/10 and 2010/11 is mainly due to the following reasons:
Additional allocation to fund for the operation of five planned PPP Correctional facilities which will provide additional bed spaces
Portfolio Committee ENE

23. 7. BUDGET ALLOCATION OVER THE MTEF PERIOD: PROGRAMME FACILITIES
Programme Facilities: Allocation (continues)
Funding provision for the construction of New Kimberley Correctional Centre to provide additional 3000 bed spaces on completion in February 2009.
Increase in the capital budget for upgrading and renovations of the existing facilities over the medium term which will create additional bed spaces
Portfolio Committee ENE

24. 8. COST DRIVERS TAKEN INTO ACCOUNT IN THE ALLOCATION OF BUDGET
Key Cost Drivers are as follows;
Personnel numbers.
Inmates including awaiting trial detainee totals.
Supervision Cases and Parolees
Implementation of White Paper projects
Portfolio Committee ENE

25. Portfolio Committee ENE
8. COST DRIVERS TAKEN INTO ACCOUNT IN THE ALLOCATION OF BUDGET (Continued)
Portfolio Committee ENE

26. 9. PROVISION OF VACANCY RATE
The vacancy rate was calculated as follows:
Financed
45 674
National Treasury Allocation Letter 2006/07
Kimberley
817
New Kimberley Correctional Facility (R for allocated for 2008/09 financial year
Sub-total
46 491
Minus 5% Vacancy Rate
2 325
Total
44 166
Portfolio Committee ENE

27. 10. AMOUNTS OF BUDGET ALLOCATION PER PROGRAMME OVER THE MTEF PERIOD
2007/08
R’000
2008/09
2009/10
2010/11
Administration
Security
Corrections
Care
Development
Social Reintegration
Facilities
Total
Portfolio Committee ENE

28. Portfolio Committee ENE
11. AMOUNTS OF BUDGET ALLOCATION PER GFS ECONOMIC CLASSIFICATION OVER THE MTEF PERIOD
GFS Economic Classification
2007/08
R’000
2008/09
2009/10
2010/11
Compensation of employees
Goods and Services
Interest and rent on land 50 52 57 60
Transfers and subsidies
32 013
34 419
36 907
36 885
Payments for capital assets
Total
Portfolio Committee ENE

29. Portfolio Committee ENE
12. ADDITIONAL AMOUNTS ALLOCATED INTO THE BUDGET BASELINE OVER THE MTEF PERIOD
2008/09
R’000
2009/10
2010/11
Departmental Budget Baseline
Additional funds allocated to budget baseline
Personnel costs New Kimberley CC
50 000
60 000
Provision for PPP Prison space
Res1 of 2007: Comp. of Personnel
Accommodation charges
45 970
68 948
94 021
Comp. of Personnel Inflation adj.
58 457
97 423
Non Personnel Inflation adjustment
32 366
36 911
57 653
Adjustments to baseline (Efficiency Savings)
(46 000)
(72 800)
( )
Total
Portfolio Committee ENE

30. Portfolio Committee ENE
13. DEVOLVED AND EARMARKED FUNDS AS INCLUDED INTO THE TOTAL BUDGET ALLOCATION OVER THE MTEF PERIOD
2008/09
R’000
2009/10
2010/11
Devolution of funds from Public Works
Specifically and exclusively appropriated: Capital Works
Portfolio Committee ENE

31. 14. EFFICIENCY GAIN SAVINGS (BUDGET REDUCTION
Efficiency Gain savings (budget reduction) was applied to the following items of expenditure:
unnecessary travel and subsistence costs;
misplaced marketing and communication initiatives;
entertainment costs; and
Weakness in supply chain management.
Portfolio Committee ENE

32. 14. EFFICIENCY GAINS SAVINGS (BUDGET REDUCTION)
Portfolio Committee ENE

33. 15. STEPS TAKEN TO IMPROVE FINANCIAL MANAGEMENT
Quarterly Budget Committee (Executive management) meetings
Monthly Budget steering committee meetings
Monthly financial meetings at all levels
Budget blocking
In Year Monitoring reporting
Portfolio Committee ENE

34. Portfolio Committee ENE
THANK YOU
Renewing our Pledge:
A National Partnership to Correct, Rehabilitate and Reintegrate Offenders for a safer and secure South Africa
Portfolio Committee ENE