building a caring correctional system that truly belongs to all portfolio committee briefing 2007...
Post on 13-Dec-2015
221 Views
Preview:
TRANSCRIPT
Building a caring correctional system that truly belongs to all
PORTFOLIO COMMITTEE BRIEFING
2007 Estimates of National Expenditure
ESTIMATES OF NATIONAL EXPENDITURE
CONTENT
1. PRINCIPLES OF CALCULATIONS FOR THE ALLOCATION 2. PRINCIPLES APPLIED ON A MORE DETAILED LEVEL PER ECONOMIC
CLASSIFICATION3. COST DRIVER4. BASELINE BEFORE REDUCTION5. REDUCTION MIN COM BUD6. REINSTATEMENTS7. ADDITIONAL FUNDING8. ENE ALLOCATION PER PROGRAMME9. ENE ALLOCATION PER GFS
PRINCIPLES OF CALCULATIONS FOR ALLOCATION
Division based on zero base as well as incremental base as prescribed by the MTEF manual.
Zero Base:
• Budget from zero mainly non-recurrent expenditure -such as capital projects, equipment and new services etc.
Incremental Base:
• Historical data exists and is taken into account during budgeting phase as well as cost drivers such as personnel numbers (salary level packages) and offender totals (per capita expenditure per offender).
PRINCIPLES OF CALCULATIONS FOR THE ALLOCATION
• Inflation provided was 5% (Provision for price fluctuations etc).
• Key Cost Drivers
– Personnel totals.– Inmates including awaiting trial detainee totals.– Probationer and Parolees– Strategic intentions (Implementation of White Paper etc.)
• Balancing to cabinet approved baseline. (See allocation letter 2007/08 – 2009/10)
PRINCIPLE APPLIED ON A MORE DETAIL LEVEL PER ECONOMIC CLASSIFICATION:
Financed 39,013 PERSNAF report
7-Days 2,627 October Appointments
7-Days 2,627 Last appointment of 7-days in 2007
Head Office ±118 Captured as Rand value and not as posts on the ENE
Big 5 Centers ±464 Captured as Rand value and not as posts on the ENE
White Paper ±300 Captured as Rand value and not as posts on the ENE
Supervisory ±525 Junior Management Posts
TOTAL ±45,674 Projected total for 2007/2008( including 5% vacancy rate)
Current Payments: Compensation of Employees: Baseline for establishment:
PRINCIPLE APPLIED ON A MORE DETAIL LEVEL PER ECONOMIC CLASSIFICATION:
• 464 posts for Big 5 Correctional Centers, 300 White Paper posts and 118 Head Office posts were only captured as rand value
• Rand value of posts captured (Programmes listed as follows)– Administration– Corrections– Development
• Head office posts = R32,3million
• Big 5 Posts = R73,4million
• 2nd White Paper posts = R57million
Current Payments: Compensation of Employees: Budgeted Posts
PRINCIPLE APPLIED ON A MORE DETAIL LEVEL PER ECONOMIC CLASSIFICATION:
BASIC SALARY
Allocation of basic salary is based on salary notches + the annual salary adjustment according to the guidelines set by National Treasury.
6% on year one 2007/2008 5% on year two 2008/2009 5% on year three 2009/2010
Note: Provision is also made for 1% notch increase
Current Payments: Compensation of Employees: Principles applied during ENE Preparation
PRINCIPLE APPLIED ON A MORE DETAIL LEVEL PER ECONOMIC CLASSIFICATION:
• Medical Aid Provision– Pensioners (8200) budgeted @ R1,521 each– Serving members budgeted @ R1014 each– GEMS not provided at this stage due to lack of information on projected take up
• Overtime– Provision is made according to approved post establishment– Provide for requirement of Collective agreement concluded on 29/04/2005 to which
Saturday duties will be compensated with time-off.– From 1 April 2008 actual overtime payment
• Sunday 1½ (BCEA Section 16 determines if employee normally works on a Sunday, overtime payment is x 1½)
• Public holiday (BCEA Section 18 determines if employee works on a Public holiday, overtime payment is x2)
• Pension– Provision of 16% per official per salary notch
• Performance Bonus– Provision of 1.5% of the basic salary
• Housing Allowances– Provided for 60% of the home owners allowance for 2007/2008
• Service Bonus– Provision of one month salary of the basic salary
Current Payments: Compensation of Employees: Principles applied to allocate allowances
PRINCIPLE APPLIED ON A MORE DETAIL LEVEL PER ECONOMIC CLASSIFICATION:
• All the following allowances were allocated based on the per capita cost. Expenditure report for the month end October 2006.
– Capital Remuneration – Empl Contr Bargain Council– Leave discounting – Periodic Payment
Current Payments: Compensation of Employees: Principles applied to allocate allowances
PRINCIPLE APPLIED ON A MORE DETAIL LEVEL PER ECONOMIC CLASSIFICATION:
Provision for the effect of interim promotion is captured on the ENE.
Promotion 5-6 = 2022 Promotion 6-7 = 629
The number of posts to be upgraded with interim promotion has been reduced respectively and added to the next level according to the above numbers.
Current Payments: Compensation of Employees: Interim promotion
PRINCIPLE APPLIED ON A MORE DETAIL LEVEL PER ECONOMIC CLASSIFICATION:
Goods and Services
• Direct cost – use cost drivers (inmates including ATD/ probationers/ parolees) X per unit cost (historical per capita cost) e.g. Per unit / per capita cost for medicine X inflator X number of offenders.
• Indirect expenditure / new services - calculation based on new prices, tariffs, quotations.
• Accommodation, Leases and Municipal services budget was devolved from DPW to departments
– Provision made according to allocation letter. Totals still to be verified by DCS
PRINCIPLE APPLIED ON A MORE DETAIL LEVEL PER ECONOMIC CLASSIFICATION:
Buildings and other fixed structures
• Based on cost and space norms.
Transfers and Subsidies
• Labour gratuity to offenders based on new tariffs and projected number that may qualify.
• Indigent gratuity (Material assistance upon release) to offenders based on new tariffs and projected number that may qualify.
• SAS SETA 1% OF 10% of basic salary
PRINCIPLE APPLIED ON A MORE DETAIL LEVEL PER ECONOMIC CLASSIFICATION
Machinery and equipment
• Estimations as provided to Directorate Management Accounting by Regional Heads Finance and FCO Head Office. (Prices, tariffs, quotation etc.)
• Minimum allocation R5000
Note : All Principles subjected to availability of Budget
COST DRIVER: OFFENDER POPULATION
Detained Inmate Population 2007/08 2008/09 2009/10
DCS
152,548 153,484 155,148
PPP’S
5,952 5,952 5,952
Total Inmate population
158,500 159,800 161,100
Probationer/ Parolee Population
2007/08 2008/09 2009/10
DCS
60,900 61,600 62,400
PPP’S
0 0 0
Total Probationer parolee population
60,900 61,600 62,400
Note: •DAIP info as on DCS A&R system extracted from MIS- calculated average from April to end of Sep 2006. •DASCP info as on DCS A&R system extracted from MIS- calculated average from April 2005 to end of Dec 2005.•The apparent surplus funding has been absorbed through the increase in per capita cost.
COST DRIVERS USED FOR CALCULATION OF REGIONAL BUDGET R’000
Note:
DAIP info as on DCS A&R system extracted from MIS - calculated average from April to end of Sep 2006.
DASCP info as on DCS A&R system extracted from MIS - calculated average from April 2005 to end of Dec 2005.
RegionsDASCP 2005/06
P ro Rata Fin DASCP 2006/07
DAIP 2006/07
P ro Rata Fin. DAIP 2006/07
Gauteng 13,527 13,768 43,829 43,855Western Cape 10,880 11,074 24,906 24,921Nw/Mp/Lp 11,044 11,241 24,157 24,171Kwazulu/Natal 11,359 11,561 25,804 25,819Eastern Cape 6,311 6,423 19,620 19,632Fs/Nc 6,713 6,833 20,091 20,103TOTAL 59,834 60,900 158,407 158,500
ENE BASELINE BEFORE REDUCTION
Year 0
2006/2007
R’000
Year 0+1
2007/2008
R’000
Year 0+2
2008/2009
R’000
Year 0+3
2009/2010
R’000
Baseline Allocation
10 630 712 11 767 489 12 451 186 13 385 025
REDUCTION MIN COM BUD
2007/08
R’000
2008/09
R’000
2009/10
R’000
Capital 1,085, 246 1,150,434 1,219,208
Compensation of employees 750,000 750,000 750,000
Offender Related 142,800 150,654 158,940
Total 1,978,046 2,051,088 2,128,148
REINSTATEMENT RECOMMENDED
2007/08
R’000
2008/09
R’000
2009/10
R’000
Compensation of employees * 227,962 221,998 95,770
Capital 565,926 559,702 610,118
Total 793,888 781,700 705,888
* DCS TO MAINTAIN 5% VACANCY RATE DECREASING TO 3% IN OUTER YEAR IN LINE WITH REDUCED BUDGET
ALLOCATION LETTER: ADDITIONAL FUNDING
2007/08
R’000
2008/09
R’000
2009/10
R’000
Administration - MISP 35,000 50,000 100,000
Security – Access Control & X Ray Scanners
100,000 100,000 100,000
Care – Remuneration for Health professionals
17,000 19,000 47,000
All Programmes – salary adjustments
7,000 15,000 58,000
Total 159,000 184,000 305,000
ENE BASELINE ALLOCATIONS 2006/2007 - 2009/2010 R’000
Year 0
2006/2007
R’000
Year 0+1
2007/2008
R’000
Year 0+2
2008/2009
R’000
Year 0+3
2009/2010
R’000
Baseline Allocation
9,831,512 10,742,331 11,365,798 12,267,765
% Increase 2.08 9.26 5.80 7.94
ENE ALLOCATION: PER PROGRAMME
Programme Adjusted budget allocation 2006/07
R’000
Year 0+1
2007/2008
R’000
Year 0+2
2008/2009
R’000
Year 0+3
2009/2010
R’000
Administration 2,573,946 2,771,323 2,983,001 3,313,878
Security 3,062,928 3,244,797 3,371,028 3,454,145
Corrections 766,914 1,236,791 1,333,824 1,430,447
Care 1,180,755 1,339,290 1,426,677 1,515,538
Development 394,343 403,917 463,479 490,780
Social reintegration
323,894 336,118 334,446 359,422
Facilities 1,528,732 1,410,095 1,453,343 1,703,555
Total 9,831,512 10,742,331 11,365,798 12,267,765
ENE ALLOCATION PER GFS STRUCTURE
GFS Classification
Adjusted budget allocation 2006/07
R’000
Year 0+1
2007/2008
R’000
Year 0+2
2008/2009
R’000
Year 0+3
2009/2010
R’000
Compensation of employees
5,792,138 6,517,950 6,870,451 7,227,052
Goods and services
2,837,852 3,160,717 3,419,407 3,726,794
Interest and rent on land
48 50 53 57
Transfers and subsidies
33,277 30,859 32,468 34,839
Payments for Capital Assets
1,168,197 1,032,755 1,043,419 1,2789,823
Total 9,831,512 10,742,331 11,365,798 12,267,765
top related