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Select Committee MTEF Budget Allocation Presentation
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Introduction to Central Services BranchBuilding a caring correctional system that truly belongs to all
SELECT COMMITTEE MTEF BUDGET ALLOCATION PRESENTATION
Select Committee MTEF Budget Allocation Presentation
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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
Select Committee MTEF Budget Allocation Presentation
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CONTENTS9. 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
Select Committee MTEF Budget Allocation Presentation
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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
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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
Select Committee MTEF Budget Allocation Presentation
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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.
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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
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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
Select Committee MTEF Budget Allocation Presentation
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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.
Select Committee MTEF Budget Allocation Presentation
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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.
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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
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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.
Select Committee MTEF Budget Allocation Presentation
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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.
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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
Select Committee MTEF Budget Allocation Presentation
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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.
Select Committee MTEF Budget Allocation Presentation
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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
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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.
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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
Select Committee MTEF Budget Allocation Presentation
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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.
Select Committee MTEF Budget Allocation Presentation
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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.
Select Committee MTEF Budget Allocation Presentation
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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.
Select Committee MTEF Budget Allocation Presentation
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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
Select Committee MTEF Budget Allocation Presentation
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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
Select Committee MTEF Budget Allocation Presentation
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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
Select Committee MTEF Budget Allocation Presentation
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8. COST DRIVERS TAKEN INTO ACCOUNT IN THE ALLOCATION OF BUDGET (Continued)
Regions
Daily Average Super. Case P opul. (DASCP ) 2007/08
P ro Rata Fin DASCP 2008/09
Daily Aver. Inmate P opul. (DAIP ) 2007/08
P ro Rata Fin. DAIP 2008/09
Gauteng 12,866 12,619 41,778 42,386Western Cape 11,785 11,559 25,845 26,221Nw/Mp/Lp 12,166 11,933 23,911 24,259Kwazulu/Natal 10,875 10,666 25,098 25,463Eastern Cape 6,784 6,654 18,717 18,989Fs/Nc 7,615 7,469 20,877 21,181TOTAL 62,091 60,900 156,226 158,500
Select Committee MTEF Budget Allocation Presentation
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9. PROVISION OF VACANCY RATE
Financed 45 674 National Treasury Allocation Letter 2006/07
Kimberley 817 New Kimberley Correctional Facility (R 50 000 for allocated for 2008/09 financial year
Sub-total 46 491
Minus 5% Vacancy Rate
2 325
Total 44 166
The vacancy rate was calculated as follows:
Select Committee MTEF Budget Allocation Presentation
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10. AMOUNTS OF BUDGET ALLOCATION PER PROGRAMME OVER THE MTEF PERIOD
Programme 2007/08R’000
2008/09R’000
2009/10R’000
2010/11R’000
Administration 2 874 543 3 111 582 3 373 333 3 605 016
Security 3 444 847 3 873 242 4 116 254 4 433 021
Corrections 1 091 580 1 064 678 1 125 249 1 211 717
Care 1 291 561 1 394 735 1 457 670 1 601 463
Development 394 348 396 615 476 337 509 011
Social Reintegration
371 356 386 538 411 320 442 021
Facilities 1 916 174 1 444 444 1 692 301 3 448 151
Total 11 384 409 11 671 834 12 652 464 15 250 400
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11. AMOUNTS OF BUDGET ALLOCATION PER GFS ECONOMIC CLASSIFICATION OVER THE MTEF PERIOD
GFS Economic Classification
2007/08R’000
2008/09R’000
2009/10R’000
2010/11R’000
Compensation of employees
6 761 950 7 144 145 7 580 571 8 175 829
Goods and Services 3 094 717 3 377 210 3 693 106 4 739 849
Interest and rent on land 50 52 57 60
Transfers and subsidies 32 013 34 419 36 907 36 885
Payments for capital assets
1 495 679 1 116 008 1 341 823 2 297 777
Total 11 384 409 11 671 834 12 652 464 15 250 400
Select Committee MTEF Budget Allocation Presentation
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12. ADDITIONAL AMOUNTS ALLOCATED INTO THE BUDGET BASELINE OVER THE MTEF PERIOD
2008/09R’000
2009/10R’000
2010/11R’000
Departmental Budget Baseline 11 365 798 12 267 765 13 045 504
Additional funds allocated to budget baselinePersonnel costs New Kimberley CC 50 000 60 000 190 000
Provision for PPP Prison space 0 0 1 653 000
Res1 of 2007: Comp. of Personnel 165 243 194 217 203 928
Accommodation charges 45 970 68 948 94 021
Comp. of Personnel Inflation adj. 58 457 97 423 121 226
Non Personnel Inflation adjustment 32 366 36 911 57 653
Adjustments to baseline (Efficiency Savings) (46 000) (72 800) (114 932)
Total 11 671 834 12 652 464 15 250 400
Select Committee MTEF Budget Allocation Presentation
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13. DEVOLVED AND EARMARKED FUNDS AS INCLUDED INTO THE TOTAL BUDGET ALLOCATION OVER THE MTEF
PERIOD
2008/09R’000
2009/10R’000
2010/11R’000
Devolution of funds from Public Works
849 225 1 002 778 1 144 385
Specifically and exclusively appropriated: Capital Works
679 861 897 902 913 529
Select Committee MTEF Budget Allocation Presentation
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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.
Select Committee MTEF Budget Allocation Presentation
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14. EFFICIENCY GAINS SAVINGS (BUDGET REDUCTION)
Administration 2008/09 2009/10 2010/11Goods and services 46,000 72,800 114,932 Communication 5,000 Consultants - - 3,710 Travel and Subsistence 25,000 14,000 15,626 Protective clothing 5,000 - - Other 11,000 58,800 95,596 Total 46,000 72,800 114,932
Select Committee MTEF Budget Allocation Presentation
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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
Select Committee MTEF Budget Allocation Presentation
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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
Select Committee MTEF Budget Allocation Presentation
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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
Select Committee MTEF Budget Allocation Presentation
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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
Select Committee MTEF Budget Allocation Presentation
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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
Select Committee MTEF Budget Allocation Presentation
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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
Select Committee MTEF Budget Allocation Presentation
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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
Select Committee MTEF Budget Allocation Presentation
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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
Select Committee MTEF Budget Allocation Presentation
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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
Select Committee MTEF Budget Allocation Presentation
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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
Select Committee MTEF Budget Allocation Presentation
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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
Select Committee MTEF Budget Allocation Presentation
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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
Select Committee MTEF Budget Allocation Presentation
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THANK YOU
Renewing our Pledge:A National Partnership to Correct, Rehabilitate and Reintegrate Offenders for a safer and secure South Africa