presentation to the portfolio committee on correctional services

PRESENTATION TO THE PORTFOLIO COMMITTEE ON CORRECTIONAL SERVICES

23 October 2006

2

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

Scope

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

(iv) 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

(v) Implementation of the entity’s service delivery improvement plan

(vi) Evaluating management’s explanations why service delivery was

not in line with targets set in the strategic plans and budgets

(vii) 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

DCS Growth

7,50

5,45

3

8,82

8,79

2

7,84

9,71

4

9,76

8,88

7

10,6

30,7

12

11,7

67,4

89

12,4

51,1

86

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

2002/03 2003/04 2004/05 2005/06 2006/07/ 2007/08 2008/09

Financial Years

R'0

00

• Average annual growth rate of 8,8% • Adjusted appropriation 05/06: R9 324 220 000 (7,5%)

06/07: R9 831 512 000 (7%) 07/08 MTEF subject to Cabinet approval

8

Growth in comp of employees budget

Compensation of employees

5,0

13,4

76

5,1

35,9

88

5,8

62,5

75

6,3

95,2

67

7,0

27,9

85

7,3

79,1

96

4,7

14,7

67

0

2000000

4000000

6000000

8000000

2002/03 2003/04 2004/05 2005/06 2006/07/ 2007/08 2008/09

Financial years

R'0

00

• Average annual growth rate of 7,8%• Adjusted appropriation 05/06: R5 093 818 000 (2,6%)

06/07: R5 792 138 000 (5,3%)

9

Personnel costs(P120; T 5.1.3)

R’000 2003/042004/05

(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

Substantial virement in 05/06 – mainly to Capital Assets (M&E)

2003/2004

Adjusted Appropriation Virement Revised Allocation Actual Expenditure

4,960,122 (7,052) 4,953,070 5,013,476

2004/2005

Adjusted Appropriation Virement Final Allocation Actual Expenditure

5,381,244 15,864 5,397,108 5,135,982

2005/2006


5,862,575 (768,757) 5,093,818 5,091,829

Budget: Comp of Employees(P 73)

11

Budget: Goods & Services(P73)

2003/2004


1,477,369 5,465 1,482,834 1,512,938

2004/2005


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


1,065,143 1,836 1,066,979 844,239

2004/2005


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

Expenditure per Prog: 31 March 2006(P 74 to 88)

R’000Finalappr

Actualexp

Under/overspending

Percentagespending

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

Final expenditure per economic classification: 31 March 2006

(P 73)

R’000Finalappr

Actualexp

Under/overspending

Percentagespending

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%

%PMG balance: 2005/06

Cashflow

21% 29%45%

65%49%

71%94% 95%

172%

54%74%

23%

0%

50%

100%

150%

200%

April'05

May'05

Jun'05

Jul'05

Aug'05

Sept'05

Oct'05

Nov'05

Dec'05

Jan'06

Feb'06

Mar'06

Perc

enta

ge

Spending pattern: 2005/06

Expenditure vs Drawings benchmark:DCS 2005/06 financial year

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

April'05

May'05

Jun'05

Jul'05

Aug'05

Sept'05

Oct'05

Nov'05

Dec'05

Jan'06

Feb'06

Mar'06

Drawings

ActualEpenditure

17

Deviations between departments’ approved expenditure plans & actual

expenditure – 2005/06

Expenditure vs Drawings benchmark 2005/06 - Defence

1,92

4,42

9

1,42

0,24

9

1,31

9,08

9

2,95

6,39

1

2,67

5,09

6

1,89

7,96

6

1,36

5,71

5

1,23

8,09

8

2,85

3,32

1

2,61

0,37

2

4,82

6,00

5

1,12

2,12

9

1,38

4,27

8

1,13

5,83

2

681,

822

1,41

0,95

9

1,81

4,20

5

1,10

5,96

5

1,45

9,45

9

1,10

3,54

6

4,66

5,00

0

1,01

2,92

3

1,54

6,63

9

1,86

5,98

1

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Month

R'0

00

Approved Draw ings Actual Expenditure

18



Expenditure vs Drawings benchmark 2005/06 - Justice

495,

293

500,

562

498,

884

480,

705

479,

680

499,

296

500,

683

499,

338

505,

239

546,

461

407,

266

393,

888

424,

458

426,

284

446,

605

384,

157

470,

445

473,

856

533,

240

502,

729

526,

840

778,

638

518,

777

594,

253

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Month

R'0

00


19



Expenditure vs Drawings benchmark 2005/06 - SAPS

2,03

8,28

8

2,14

5,32

3

2,10

8,39

4

2,25

9,95

4

2,30

9,02

5

2,63

5,57

3

2,67

4,34

5

2,72

5,17

9

1,97

8,00

0

2,07

7,04

8

2,05

4,36

9

2,03

3,19

0

2,32

8,15

2

2,51

6,65

2

2,37

5,22

5

2,72

4,27

4

2,86

9,15

0

2,15

9,42

4

2,46

0,28

2

2,09

5,56

7

2,25

0,69

2

2,64

9,31

6

2,31

1,52

8

3,18

2,05

7

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Month

R'0

00


20

Personnel trends

21

Personnel numbers: 31 March 2006 (P 123; T 5.2.3)

Posts: 39 449 Filled: 36 385 Vacant: 3 064Vacancy rate 7,8%

Custodian personnel Posts : 37 230 Filled: 34 896 Vacant: 2 334 (Vulindlela 25 300)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

Appointment Act

No of pers

Appointment Act

No of pers

PSA, 1994 461 PSA, 1994 32 980 PSA, 1994 14 415

Corr Serv Act 36 939 Police Act 124 784 Defence Act 63 443

Other 94 Other 1 Other -

Total 37 494 157 765 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 5.11.1)

151 680 159 264 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

INJURY ON DUTY(P141; T 5.12)

DCS SAPS

03/04 04/05 05/06 05/06

Basic medical attention - 736 403 4,238

Temp. total disability - 154 73 -

Permanent disability - 30 68 -

Fatal 6 6 1 84

Total 840 926 545 4,322

Personnel comp: DCS 36 385 SAPS 155 532 (x4)

25

Annual Report performance against plan 2005/06

26

Outputs, Indicators & Targets(P 27)

SECURITY

Output Indicators AR target Actual

Security Safe & secureenvironment

% Decrease in assault of inmates, ADT's staff

Fewer than1 739(2 080)

2 001

% Decrease inunnaturaldeaths byviolence

Fewer than41(71)

30

% Decrease in escapes by inmates compared to2004/05

Fewer than 171(154)

112

Numbers in brackets = ENE targets

27

Outputs, Indicators & Targets – cont.(P 29 / 30)

CORRECTIONS


PersonalCorrections

Risk assessment & profiling ofoffenders

% of offenders risk assessed and profiled offenders

23 % of offenders

Commence06/07

Reduction in recidivism

Recidivism rate T / b benchmarked in 06/07

Work opportunities for sentenced.inmates

Daily average of work opportunities provided

More than30 000 (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


PersonalWell-being

Well-being of persons under dept. care

No. of staff andoffenders trained asmaster trainersand peer HIV Educators

M/t 420 1 254

No. of support groups

M/t 75 49

Social worksessions

No. of persons participated

M/t 118 292(106 000)

118 057

Psychological sessions

No. of personsparticipated

M/t 15 500 17 820

Spiritual caresessions

No. of persons participated

M/t 150 000(155 000)

165 615

29


Development


Personal Developmentof offenders

Development programme for sentenced offenders

No. of offendersparticipating in education programmes

M/t 26 700(25 000)

22 932(remissions)

Skills developmentalprogrammes

M/t 21 000 8 502(late receiptof fundsLabour)

No. of released offenders receiving assistance

M/t 40 000(27 100)

42 510

Important indicator re work opportunities not addressed

30


Social Re-integration


Community liaison

Supervision ofprobationers and parolees

No. of parolees and probationers 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 inmass participation projects

M/t 92 000 96 000

Not clear if percentage of released persons attending re-integration programmes was benchmarked in 2005/06

31


Facilities


Facilities Planning

Accommodation in correctional centres

No. of additional bed spaces

12 000 in 06/07

#

Building & maintenance

Properly planned infrastructure

No. of correctional facilities renovated

11 11

Upgrading of facilities

No. 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 managementPERFORMANCE AUDIT: Official accommodation

35

Discussion

presentation to the portfolio committee on correctional services

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