1. When everything is a priority, then nothing is a priority
Department of Justice and Constitutional Development Overview of Budget, Constraints and the impact on Department’s planning
When everything is a priority, then nothing is a priority

2. Content Executive Summary Main Challenges
Criteria for Budget Allocation
Budgetary Performance Previous Financial Year
Budgetary Headline Information
Planned Reallocation to Priorities due to projected under spending on Infrastructure Programme
Donor Support
Impact of Proposed further cuts
Challenges to be addressed in the current financial year
Regional Spending
Conclusion

3. Executive Summary DOJ&CD has absorbed significant cuts until 2017/18.
2017/18 was the first time Entities are significantly affected – NPA, Public Protector and Legal Aid SA
Main challenge for all (including DOJ&CD) relates to Staff Establishment to service existing service points.
Shortfall on Compensation
Further challenge for DOJ&CD is maintenance of infrastructure costs (include security Infrastructure) (Ministerial priority)
Inadequate investment in ICT (Ministerial Priority)
High Cost of Compliance
Additional pressures due to Commissions
Uncertainty on budget allocations and related planning

4. Main Challenge to Business Units
Competing mandates
Inadequacy of funding in government and National Treasury practice to refer justice cluster to DOJCD to achieve efficacy of funding allocation
Inability to cut further without impacting on service delivery points
Inability to further absorb increases in cost of living increases beyond budgetary increases
Slow response time and lack of agility in general
E.g. Process to approve amendments in Job Descriptions & severance packages
Slow processes in alignment of resources in the Justice Value Chain
Slow response time in reorganisation of Business - e.g. State Attorney
Clarity of Policy in terms of understanding the real impact on both the public and the operations of the Justice Value Chain
Determination of non performing programmes and non essential programmes

5. Criteria for Budget Allocation
Spending Trends
Performance – Fix Non-performing Programmes that are critical and cannot be cut
Demand Pressures, risks & looming crisis, growth catalysts
Efficiencies & Savings
Value for Money
Remove Non-Core Programmes
Transformative Impact & Vulnerable/ Key Groups
Policy Blockages

6. Budget Assumptions & Guiding Principles for cutting of budget
Compensation ceiling to remain
Salary Increases will remain within Inflation – therefore compensation not to be touched
Earmarked Funds not to be touched
Infrastructure and Accommodation
IJS/CJS
Magistrate Salaries
ICT as lever for transformation not to be touched (need however more funding to fulfil transformational vision & infrastructure capacity requirements)
Consideration for contractual obligations that cannot be touched
Critical operations spending items e.g. witness fees, Psychiatric Observation (Need increase or VCC to be utilised to sustain)

7. Budgetary Performance Previous Financial Year

8. COMPOSITION OF UNDER SPENDING PREVIOUS FINANCIAL YEAR
COMPENSATION OF EMPLOYEES: VOTE
R (Earmarked) R40 million relate to senior posts currently being filled and rest due to timing variations in appointment process
GOODS & SERVICES : VOTE R
VOTE OTHER CLASSIFICATION (SASSETA)
R 1 023
STATE CAPTURE COMMISSION
R (Earmarked – no control)
SARS COMMISSION
R (Earmarked – no control)
MAGISTRATES SALARIES
R (Direct Charges – no control)
TOTAL UNDER SPENDING R

9. Composition of Budget – Discretionary R1.1 billion

10. HIGH SPENDING ITEMS FOR 2017/18 VERSUS 2018/19
Cost Drivers- Goods and Services
Economic Classification Spending
2017/ R’000
2018/ R’000
Percentage Growth
Comments 
Building Leases
47%
The increase is due full settlement payment of accommodation charges, including accrual of R167 million that was carried over from 2017/18.
Electricity and Water
(12%)
The decrease in 2018/19 is due to the fact that expenditure in 2017/18 included accruals which were carried over from 2016/ /19 expenditure accounts for only expenses incurred in the same year.
Security Services 5%
The increase is due to inflationary increases.
Travel and Subsistence 2%
Computer and IT Support Services
(11%)
The decrease is due to the Department of Correctional Service’s inability to obtain condonement to regularise the Integrated Inmate Management System (IIMS).
Agency and Support/Outsourced Services
27%
The increase is due to the payment of investigators for the Commission of Inquiry into State Capture.
Consumables: Stationery, Printing and Office Supplies
12%
The increase is due to expenditure in respect of the Commissions of Inquiries.
Communication
(9%)
The decrease is due to the continuous implementation of cost containment measures.
Legal Services
22%
The increase is due to the legal cost expenditure in respect of Commission of Inquiry into State Capture, SARS and PIC.

11. COST CONTAINMENT MEASURES ITEMS PERFORMANCE 2017/18 VERSUS 2018/19

12. Budgetary Headline Information

13. CONTEXT OF PROPOSED BUDGET CUT SINCE 2015
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
Total Cut
000
Baseline reduction
Financial Inteligence Centre: 2014/15
(20 000)
(30 000)
(40 000)
(22 000)
( )
Financial Inteligence Centre: 2015/16
(18 000)
(60 000)
Budget cut phase 1
( )
( )
( )
( )
Budget cut Phase 2
( )
( )
( )
( )
Budget cut Phase 3
( )
( )
( )
( )
Budget cut Phase 4
( )
( )
( )
( )
Total baseline reduction
( )
( )
( )
( )
( )
( )

14. 2018 MTEF ALLOCATIONS PER PROGRAMME
Description
2017/18
R’000
2018/19
2019/20
2020/21
2021/22
Administration
Court Services
State Legal Services
National Prosecuting Authority
Auxiliary and Associated Services
Total Vote
Direct charge against the National Revenue Fund
Total DOJ&CD
Percentage Growth 4% 7% 6%

15. 2018 MTEF ALLOCATIONS PER ECONOMIC CLASSIFICATIONS
Description
2017/18
R’000
2018/19
2019/20
2020/21
2021/22
Compensation of employees
Goods and services
Transfers and subsidies
Payments for capital assets
Payments for financial assets
22 341
Total DOJ&CD
Percentage Growth 4% 7% 6%

16. Highest Cost drivers Department
Description
2017/18
R’000
2018/19
2019/20
2020/21
2021/22
Compensation of employees
Buildings and other fixed structures
Computer services
Operating leases
Property payments
Total Highest Spending Pressures

17. Year on Year Overall Growth

18. Year on Year COE Growth

19. Year to Year G&S Growth

20. Year to Year Payment for Cap Ass Growth

21. Funding Choices R’000

22. Planned reallocation to priorities from expected under spending from DPW
Reported Budget Shortfalls
Amount '000
From To
Replacement of Desk Tops
35 000
Infrastructure
Equipment
Replacement of Laptops
25 000
Security Infrastructure
40 000
Security
Maintenance of Court Buildings
Maintenance

23. DONOR TECHNICAL SUPPORT
International Aid
Sexual Offences Courts
Relationship with private sector support
Technical support on contract management review of SCM
Community Advice Offices
GBV
NPA

24. Impact of Proposed Further Cuts

26. HISTORIC CONTEXT OF THE BUDGET CUT SINCE 2015
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2020/23
Total Cut
000
Baseline reduction
Financial Inteligence Centre: 2014/15
(30 000)
(40 000)
(22 000)
(92 000)
Financial Inteligence Centre: 2015/16
(18 000)
(20 000)
(60 000)
Budget cut phase 1
( )
( )
( )
( )
Budget cut Phase 2
( )
( )
( )
( )
Budget cut Phase 3
( )
( )
( )
( )
Budget cut Phase 4
( )
( )
( )
( )
Budget cut Phase 5
(72 950)
(69 377)
(20 735)
( )
Budget cut Phase 6
( ) (
( )
( )
Total baseline reduction
( )
( )
( )
( )
( )
( )
( )
( )

28. Existing Impact of budget cuts on Courts
Increased threats to witnesses due to the reduction of protection services (NPA)
Compromised level of security provisioning in courts and department’s buildings
A sluggish eradication of backlog cases
Non appointment of key positions such as prosecutors, court interpreters, maintenance officers, estate administrators and administrative staff providing corporate services such as finance, human resources and IT etc.
Reduced pace on the implementation of the IJS/CJS project thus prolonging the programme completion

29. FURTHER SERVICE DELIVERY IMPACT OF PROPOSED BUDGET CUT SERVICE POINTS
2020/21
2021/22
2020/23
Courts 24 29 34
Masters 1
State Attorney
Family Advocate 2

30. Challenges in the Department to be addressed this financial year
New priority areas e.g. NPA Directorate, One Man Stations, Aspirant Prosecutor, Family Advocate, Regional Support Services
Potential overspending on Compensation – already at 8%
Reliability of aligned Performance Information on which management decisions are made
Potential unbundling of DOJCD functions and related costs
Inadequate alignment of resources of all the entities in relation to productivity information
Inadequate alignment of policies, strategy and procedures of all the entities
Delays in finalisation of policies and operating models e.g. language interpretation, virtual libraries, security services, accommodation standards, psych evaluations, witness fees, building management of new courts, gardening and cleaning services in courts, GBV projects, community advice offices, TRC community rehabilitation projects, OSD cost implications, Family Advocate
Delays in creating permanent staff establishment in critical areas (ICT, SCM, Asset Management, Internal Control, Justice College)
Impact of Commissions on the workload of the Department
Impact of potential non-performance of DPW on infrastructure roll-out of the department
Maintenance of infrastructure and Replacement of equipment/ computers/fleet/ tools of trade/PABX
Inadequate demand management, SCM value chain and Contract management
Inadequate resourcing of specialised procurement areas

31. FUNDED BY REMAINING DISCRETIONARY BUDGET

32. REGIONAL SPENDING

33. REGIONS BUDGET ALLOCATION SUMMARY 2019/20 TO 2021/22
2020/21
2021/22
000
EASTERN CAPE
FREE STATE
GAUTENG
KWAZULU NATAL
LIMPOPO
MPUMALANGA
NORTHERN CAPE
NORTH WEST
WESTERN CAPE
TOTAL
YEAR ON YEAR GROWTH
11% 7% 6%

34. BUDGET ALLOCATION SHARE PER REGION

35. REGIONAL BUDGET ALLOCATION SUMMARY PER ECONOMIC CLASSFICATION 2019/20 TO 2021/22
Economic classification
2019/20
2020/21
2021/22
000
Current payments
Compensation of employees
Goods and services
Transfers and subsidies
28 041
29 637
31 285
Provinces and municipalities
558
582
614
Departmental agencies and accounts
138
145
146
Households
27 345
28 910
30 525
Payments for capital assets
68 238
67 915
70 590
Machinery and equipment
Total

36. Conclusion
The DOJ&CD together with entities need to explore possibilities of consolidating/aligning their support services in order to release financial resources to be redirected toward funding co-functions.
Investment in automation need to be increased as to realise operational and cost efficiencies.
All entities in the Justice family must continuously and jointly review their business processes in order to ensure alignment