1. Select Committee MTEF Budget Allocation Presentation 1 Introduction to Central Services Branch Building a caring correctional system that truly belongs to all SELECT COMMITTEE MTEF BUDGET ALLOCATION PRESENTATION

2. Select Committee MTEF Budget Allocation Presentation 2 CONTENTS 1.Budget allocation over the MTEF period: Programme Administration 2.Budget allocation over the MTEF period: Programme Security 3.Budget allocation over the MTEF period: Programme Corrections 4.Budget allocation over the MTEF period: Programme Care 5.Budget allocation over the MTEF period: Programme Development 6.Budget allocation over the MTEF period: Programme Social Reintegration 7.Budget allocation over the MTEF period: Programme Facilities 8.Cost drivers taken into account in the allocation of budget ENE BUDGET ALLOCATION

3. Select Committee MTEF Budget Allocation Presentation 3 CONTENTS 9. Provision of vacancy rate 10. Amounts of budget allocation per programme over the MTEF period 11. Amounts of budget allocation per GFS Economic Classification over the MTEF period 12. Additional amounts allocated to the budget baseline over the MTEF period 13. Devolved and Earmarked funds as included in the total budget allocation over the MTEF period 14. Efficiency Gain Savings (Budget reduction) 15. Steps taken to improve financial management 15.1. Details of measures put in place to improve compliance with the financial management principles ENE BUDGET ALLOCATION

4. Select Committee MTEF Budget Allocation Presentation 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

5. Select Committee MTEF Budget Allocation Presentation 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

6. Select Committee MTEF Budget Allocation Presentation 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.

7. Select Committee MTEF Budget Allocation Presentation 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

8. Select Committee MTEF Budget Allocation Presentation 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

9. Select Committee MTEF Budget Allocation Presentation 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.

10. Select Committee MTEF Budget Allocation Presentation 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.

11. Select Committee MTEF Budget Allocation Presentation 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

12. Select Committee MTEF Budget Allocation Presentation 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.

13. Select Committee MTEF Budget Allocation Presentation 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.

14. Select Committee MTEF Budget Allocation Presentation 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

15. Select Committee MTEF Budget Allocation Presentation 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.

16. Select Committee MTEF Budget Allocation Presentation 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

17. Select Committee MTEF Budget Allocation Presentation 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.

18. Select Committee MTEF Budget Allocation Presentation 18 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

19. Select Committee MTEF Budget Allocation Presentation 19 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.

20. Select Committee MTEF Budget Allocation Presentation 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.

21. Select Committee MTEF Budget Allocation Presentation 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.

22. Select Committee MTEF Budget Allocation Presentation 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 15000 bed spaces

23. Select Committee MTEF Budget Allocation Presentation 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 2180 bed spaces

24. Select Committee MTEF Budget Allocation Presentation 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

25. Select Committee MTEF Budget Allocation Presentation 25 8. COST DRIVERS TAKEN INTO ACCOUNT IN THE ALLOCATION OF BUDGET (Continued)

26. Select Committee MTEF Budget Allocation Presentation 26 9. PROVISION OF VACANCY RATE Financed45 674National Treasury Allocation Letter 2006/07 Kimberley817New Kimberley Correctional Facility (R 50 000 for allocated for 2008/09 financial year Sub-total46 491 Minus 5% Vacancy Rate 2 325 Total44 166 The vacancy rate was calculated as follows:

27. Select Committee MTEF Budget Allocation Presentation 27 10. AMOUNTS OF BUDGET ALLOCATION PER PROGRAMME OVER THE MTEF PERIOD Programme2007/08 R’000 2008/09 R’000 2009/10 R’000 2010/11 R’000 Administration2 874 5433 111 5823 373 3333 605 016 Security3 444 8473 873 2424 116 2544 433 021 Corrections1 091 5801 064 6781 125 2491 211 717 Care1 291 5611 394 7351 457 6701 601 463 Development394 348396 615476 337509 011 Social Reintegration 371 356386 538411 320442 021 Facilities1 916 1741 444 4441 692 3013 448 151 Total11 384 40911 671 83412 652 46415 250 400

28. Select Committee MTEF Budget Allocation Presentation 28 11. AMOUNTS OF BUDGET ALLOCATION PER GFS ECONOMIC CLASSIFICATION OVER THE MTEF PERIOD GFS Economic Classification 2007/08 R’000 2008/09 R’000 2009/10 R’000 2010/11 R’000 Compensation of employees 6 761 9507 144 1457 580 5718 175 829 Goods and Services3 094 7173 377 2103 693 1064 739 849 Interest and rent on land 50525760 Transfers and subsidies32 01334 41936 90736 885 Payments for capital assets 1 495 6791 116 0081 341 8232 297 777 Total11 384 40911 671 83412 652 46415 250 400

29. Select Committee MTEF Budget Allocation Presentation 29 12. ADDITIONAL AMOUNTS ALLOCATED INTO THE BUDGET BASELINE OVER THE MTEF PERIOD 2008/09 R’000 2009/10 R’000 2010/11 R’000 Departmental Budget Baseline11 365 79812 267 76513 045 504 Additional funds allocated to budget baseline Personnel costs New Kimberley CC50 00060 000190 000 Provision for PPP Prison space001 653 000 Res1 of 2007: Comp. of Personnel165 243194 217203 928 Accommodation charges45 97068 94894 021 Comp. of Personnel Inflation adj.58 45797 423121 226 Non Personnel Inflation adjustment32 36636 91157 653 Adjustments to baseline (Efficiency Savings)(46 000)(72 800)(114 932) Total11 671 83412 652 46415 250 400

30. Select Committee MTEF Budget Allocation Presentation 30 13. DEVOLVED AND EARMARKED FUNDS AS INCLUDED INTO THE TOTAL BUDGET ALLOCATION OVER THE MTEF PERIOD 2008/09 R’000 2009/10 R’000 2010/11 R’000 Devolution of funds from Public Works 849 2251 002 7781 144 385 Specifically and exclusively appropriated: Capital Works 679 861897 902913 529

31. Select Committee MTEF Budget Allocation Presentation 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.

32. Select Committee MTEF Budget Allocation Presentation 32 14. EFFICIENCY GAINS SAVINGS (BUDGET REDUCTION)

33. Select Committee MTEF Budget Allocation Presentation 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

34. Select Committee MTEF Budget Allocation Presentation 34 Certification of monthly financial management meetings  Regional Commissioners, Area Commissioners, Heads of Correctional Centres and Heads of various Branches are required to certify on the six monthly basis that financial management meetings were held within their areas of responsibilities.  Discussions of budget and expenditure is done at the lowest item expenditure level (posting level) 15.1 DETAILS OF MEASURES PUT IN PLACE TO IMPROVE COMPLIANCE WITH THE FINANCIAL MANAGEMENT PRINCIPLES

35. Select Committee MTEF Budget Allocation Presentation 35 Certification of monthly financial management meetings (Continue)  In order to determine proper reasons for variances between budget and expenditure on each programme and GFS economic classification item.  The discussions and resolutions consist of measures which have been put in place to ensure that expenditure is properly managed to avoid any possible over or under-spending of budget allocated. 15.1 DETAILS OF MEASURES PUT IN PLACE TO IMPROVE COMPLIANCE WITH THE FINANCIAL MANAGEMENT PRINCIPLES

36. Select Committee MTEF Budget Allocation Presentation 36 Monthly financial management meetings with the Regional Heads of Finance and Supply Chain Management  Monthly financial management meetings are being held to discuss financial management problems which regions are experiencing and also to find common solutions to resolve them.  This allows Head Office and Regional Financial Managers to share information regarding the successes and to replicate these successes to the regions which still require improvements. 15.1 DETAILS OF MEASURES PUT IN PLACE TO IMPROVE COMPLIANCE WITH THE FINANCIAL MANAGEMENT PRINCIPLES

37. Select Committee MTEF Budget Allocation Presentation 37 Monthly financial management meetings with the Regional Heads of Finance and Supply Chain Management (Continue)  Enable the Regional Financial Managers to account to Head Office Managers in terms of how they are managing finances in their regions.  Head Office managers are able to provide solutions to the problems raised from regions for implementation. 15.1 DETAILS OF MEASURES PUT IN PLACE TO IMPROVE COMPLIANCE WITH THE FINANCIAL MANAGEMENT PRINCIPLES

38. Select Committee MTEF Budget Allocation Presentation 38 Financial policies and procedures  Head Office develops and distributes the approved financial policies and procedures to the regions, management areas and correctional centres for implementation and  to ensure that there is uniform financial management practices and  that the identified gaps in the system are closed. 15.1 DETAILS OF MEASURES PUT IN PLACE TO IMPROVE COMPLIANCE WITH THE FINANCIAL MANAGEMENT PRINCIPLES

39. Select Committee MTEF Budget Allocation Presentation 39 Financial management training  Financial management trainings are being provided to the regions, management areas and correctional centres  in order to capacitate them to manage their finances properly in line with the requirements of the Public Financial Management Act. 15.1 DETAILS OF MEASURES PUT IN PLACE TO IMPROVE COMPLIANCE WITH THE FINANCIAL MANAGEMENT PRINCIPLES

40. Select Committee MTEF Budget Allocation Presentation 40 Monthly In year monitoring reporting of revenue, budget and expenditure  Regional Commissioners, Area Commissioners, Heads of Branches and Heads of Correctional Centres do submit their monthly In Year Monitoring reports in accordance with their level of accountability. 15.1 DETAILS OF MEASURES PUT IN PLACE TO IMPROVE COMPLIANCE WITH THE FINANCIAL MANAGEMENT PRINCIPLES

41. Select Committee MTEF Budget Allocation Presentation 41 Monthly In year monitoring reporting of revenue, budget and expenditure (Continue)  The In year monitoring reporting assist the department with the following:  Proper management of budget, expenditure and revenue in order to prevent any under or overspending of budget and  Minimize the risk that the department runs into the cash flow problems. 15.1 DETAILS OF MEASURES PUT IN PLACE TO IMPROVE COMPLIANCE WITH THE FINANCIAL MANAGEMENT PRINCIPLES

42. Select Committee MTEF Budget Allocation Presentation 42 Committees and forums established to monitor the financial management issues amongst other issues  Audit Committee  Budget Steering Committee  National Budget Committee  Regional Budget Committees 15.1 DETAILS OF MEASURES PUT IN PLACE TO IMPROVE COMPLIANCE WITH THE FINANCIAL MANAGEMENT PRINCIPLES

43. Select Committee MTEF Budget Allocation Presentation 43 Committees and forums established to monitor the financial management issues amongst other issues (Continue)  Management Coordinating Committee  Extended Management Coordinating Committee  Regional Commissioners forum 15.1 DETAILS OF MEASURES PUT IN PLACE TO IMPROVE COMPLIANCE WITH THE FINANCIAL MANAGEMENT PRINCIPLES

44. Select Committee MTEF Budget Allocation Presentation 44 Budget Blocking  Budget blocking was implemented on BAS financial system as one of the mechanisms to improve financial management and to assist the department in achievement of the following:  Proper allocation and spending of budget and  to minimize the risk of unauthorized expenditure. 15.1 DETAILS OF MEASURES PUT IN PLACE TO IMPROVE COMPLIANCE WITH THE FINANCIAL MANAGEMENT PRINCIPLES

45. Select Committee MTEF Budget Allocation Presentation 45 THANK YOU Renewing our Pledge: A National Partnership to Correct, Rehabilitate and Reintegrate Offenders for a safer and secure South Africa