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DOJ&CD2014 Estimate of National
Expenditure
2
Index
1. Key assumptions and alignment to MTBPS
2. Estimates of National Expenditure and Spending
Trends
3. Medium Term Spending pressures
DOJ&CD2014 Key Assumptions and
Alignment
Economic mission statement Macroeconomic stability, supported by
prudent fiscal management and sound monetary policyRevenue Stabilises at around 29% of GDP (Revenue
generated DOJ&CD 2013/14 R403.8m)Non interest expenditure declines from 30.2% of GDP
in 2013/14 to 28.8% of GDP in 2016/17Economic growth improves and spending
limits/ceilings stay in place leading to budget deficit declining from 4% to 2.8% by 2016/17
4
Implications
Cost Containment Measures to achieve fiscal sustainability
Improved Costing and Reprioritization of Compensation Spend
Reprioritization of spending on goods and services to achieve allocative efficiency
5
Performance on Cost Containment measures without impacting on service delivery
Between 2009/10 to 2013/14 average saving of 40% on Consultant costs 10% on Travel and Subsistence
6
Performance on Operation Excellence
Focus on efficiency of processesReengineering of processes related to
Masters Office and Guardians Fund allowed for expansion of services within headline inflationary increase of budget
Reengineering of processes related to Maintenance payments (Third Party Funds)
7
Performance in 2013/2014 Financial YearTHIRD PARY FUNDSTabled outstanding AFS for 5 years in parliamentThird party Funds - Total of R3 billion received and paid of which R2,024 billion (67%) is for maintenance Average Monthly Payments to 252 000 beneficiaries (Of which currently only 4 798 is in cash)
Performance in 2013/2014 Financial YearGUARDIAN FUND
Total Assets – R9,359 BillionTotal Liabilities – R8,586 billionAccumulated surplus - R773,1 millionPayments to 60 675 beneficiaries – R1,130 billionInvestment Revenue – R492,2 millionInterest distributed to beneficiaries R400,4 millionProfit Surplus for the year – R89,6 million
Performance in 2013/2014 Financial YearPRESIDENT FUNDTotal Assets – R1,199 billionTotal Liabilities – R3,216 millionAccumulated surplus - R1,195 billion
CARA ACCOUNTTotal Assets – R246,9 millionTotal Liabilities – R552 000Accumulated surplus - R246,382 millionRevenue from confiscation and forfeiture orders – R102 million Funds available for distribution as at 31 March 2014 - R189m
Alignment to Value for Money Initiatives in Budget Policy Statement
Better accountability, discipline and stewardship of public resources
Rigorous procurement reforms initiated in infrastructure project management
11
Alignment to NDP-All citizens should feel and be safe
Enhancing court efficiency and Strengthening judicial governance and rule of law (ISM spent R494m and CJS& IJS spent R472m in 2013/14)
Audiovisual remand systems, enhanced court record systems, improved appeal processes and transcriptions
Integrated seamless and modern criminal justice system through IT
Improving access to justice especially to vulnerable groups including LGBTI (Sexual offences spending R11m in 2013/14 and R19.7m 2014/15, Child Justice Act and Children Act spending R2.9m in 2013/14 and R3.3m in 2014/15, LGBTI R1.1m 2014/15)
12
Alignment to NDP Contribution to Broad Based Black Economic
empowerment 80% in value of spending on goods and services Level1-4
Building Corruption Free Society Internal Audit, Anti corruption and Risk Management R63m
2013/14 and R68.8m 2014/15
Building of a Capable StateAlignment of policy, process, resources, technology and
data Improved people and performance measurementImproved audit outcomes – VOTE account, CARA,
President Fund and Guardian Fund unqualified 2013/14,
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DOJ&CD2014 Estimates of National Expenditure and Spending
Trends
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2013/14 2012/13 2011/12
Final Budget 11,138, 314 10, 181, 592 8 960 034
Less
Expenditure 10,663,313 10, 180, 586 8 958 959
Balance 475,001 1, 006 1, 075
Capital Expenditure 347 607
IJS 120 002
Current 7 392
Percentage Expenditure 95,7 100 100
Department of Justice and Constitutional Development
Capital WorksUnder Spending 2013/14
Delays in implementation – 1 year and longer Justice College refurbishment Limpopo High Court Plettenberg Bay Magistrate officeMamelodi Magistrate OfficeKagiso Magistrate OfficeMpumalanga High CourtPort Shepstone Magistrate Court
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Capital WorksChallenges 2014/15
Mandate of DPWAdequate technical supportNumber of offices with serious structural
problems (Bultfontein, Hennenman, Wepener, Lehuritse)
Outstanding lease renewals since 2012New dispensation of limitation of lease period and
impact on costs (80 leases impacted)
17
Integrated Justice SystemUnder Spending 2013/14
Disaster Recovery Site and Network Upgrade
Challenges experiencedLegislation on implementing agency, e.g.
SITADelays in publishing approved specificationsDelays in evaluation of bidsDelays in the adjudication process
18
Intervention Strategies Implemented Meeting and formal correspondence
at project management levelat CFO levelat Accounting Officer levelat Ministerial level
Escalation to National TreasuryEscalation to Cabinet
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Headline on Spending
20
2011/12 2012/13 2013/14 '000 '000 '000
Overall 8 958 959 10 180 586 10 663 313 6%
Compensation 3 491 028 3 876 559 4 353 868 8%
Goods and Services 2 645 962 3 444 072 3 475 504 10%
Machinery & Equipment 293 837 203 646 394 613 10%
Capital 683 095 621 206 387 607 -17%
Accruals - Debtors paid after 30 Days (Year end)
492 604 85 906 8 820 -74%
Accruals - Current 321 931 200 806 111 081 -30%
Annual average growth
Cost Drivers - Goods and Services
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Programme 2011/12 2012/13 2013/14Economic classification '000 '000 '000 Spending Rand 1 845 070 2 273 193 2 290 484 7%
Building Leases 406 818 478 296 681 199 19%Electricity and Water 194 113 292 822 282 416 13%Security services 370 583 503 090 439 116 6%Travelling and Accommodation 447 671 544 908 413 497 -3%Computer Services/Data lines/ transversal System Support
425 885 454 077 474 256 4%
Year on Year Growth 23% 1%
Indicative Medium-term allocation Annual
average growth
Cost Drivers - Goods and Services
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VOTE 22: JUSTICE AND CONSTITUTIONAL DEVELOPMENT (JUSTICE AND PROTECTION SERVICES)
Programme 2011/12 2012/13 2013/14
Economic classification '000 '000 '000
Spending Rand and Percentage of Budget 268 867 315 455 316 917 6%
Telecommunication 136 859 146 275 139 094 1%
Psychological evaluations 44 646 70 657 77 570 20%
Transcription fees 26 867 33 616 39 565 14%
Witness fees 60 495 64 907 60 688 0%
Year on Year Growth 17% 0%
Indicative Medium-term allocation
Annual average growth
DOJ&CD2014 Estimates of National
Expenditure
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MTEF BUDGET ALLOCATIONS:Year on Year Growth
2013/14
‘000
2014/15
‘000
2015/16
‘000
2016/17
‘000
Approved budget
Year On Year Growth
16,782,201 17,892,137
6.6%
18,770,668
4.9%
20,170,973
7.5%
Total Budget Allocation
25
1 853 532, 11%
5 495 388, 31%
565 099, 3%924 950, 5%
3 252 872, 18%
3 070 030, 17%
2 730 266, 15%
Budget Allocation (R17.9 billion) Per Programme 2014/15
Administration
Court Services
Office of the Chief Justice
Sate Legal Services
NPA
Auxilliary and Associated Services
Direct Charges (Judges' and Magistrates' Salaries
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Budget Allocations per Programme2013/14 2014/15 2015/16 2016/17
Revised Medium-term estimates
estimate MTEF Baseline
1. Administration 1 896 130 1 853 532 1 944 289 2 140 070
2. Court Services 5 304 544 6 060 487 6 332 658 6 942 231
3. State Legal Services 876 616 924 950 1 004 796 1 069 725
4. National Prosecuting Authority 3 068 164 3 252 872 3 377 639 3 592 161
5. Auxiliary and Associated Services 2 711 024 3 070 030 3 255 428 3 419 567
Total for programmes 13 856 478 15 161 871 15 914 810 17 163 754
Direct charge against the National Revenue Fund 2 575 723 2 730 266 2 855 858 3 007 219
Judges' salaries 786 511 828 983 873 748 920 057
Magistrates' salaries 1 789 212 1 901 283 1 982 110 2 087 162
Departmental total 16 432 201 17 892 137 18 770 668 20 170 973
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MTEF BUDGET ALLOCATIONS:Growth in Programme Allocations
-
1 000 000
2 000 000
3 000 000
4 000 000
5 000 000
6 000 000
7 000 000
8 000 000
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
2. Court Services 1. Administration
3. State Legal Services 4. National Prosecuting Authority
5. Auxiliary and Associated Services Direct charge against the National Revenue Fund
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Budget Allocations per Economic ClassificationVOTE 22: JUSTICE AND CONSTITUTIONAL DEVELOPMENT (JUSTICE AND PROTECTION SERVICES)
Programme 2013/14 2014/15 2015/16 2016/17
Economic classification '000 '000 '000 '000
Current payments 11,124,880 11,666,266 12,282,458 13,095,611
Compensation of employ ees 6,924,873 7,489,071 7,871,208 8,249,285
Goods and serv ices 4,200,007 4,177,195 4,411,250 4,846,326
Transfers and subsidies 2,055,375 2,165,957 2,285,544 2,407,423
Prov inces and municipalities 286 370 412 435
Departmental agencies and accounts 2,003,130 2,122,227 2,240,676 2,360,317
Public corporations and priv ate enterprises – – – –
Foreign gov ernments and international organisations 14,489 5,818 6,086 6,409
Non-profit institutions – – – –
Households 37,470 37,542 38,370 40,262
Payments for capital assets 1,024,726 1,329,648 1,346,808 1,660,720
Buildings and other fix ed structures 803,569 864,343 804,590 1,068,667
Machinery and equipment 221,116 465,262 542,173 592,006
Cultiv ated assets – – – –
Softw are and other intangible assets 41 43 45 47
Land and subsoil assets – – – –
2,575,723 2,730,266 2,855,858 3,007,219
Total 16,780,704 17,892,137 18,770,668 20,170,973
6.6% 4.9% 7.5%
Indicative Medium-term allocation
Year on Year Growth
Direct Charges
Budget Distribution
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30
MTEF BUDGET ALLOCATIONS:Growth in Item Allocations
-
1 000 000
2 000 000
3 000 000
4 000 000
5 000 000
6 000 000
7 000 000
8 000 000
9 000 000
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
Compensation of employees Goods and servicesTransfers and subsidies Buildings and other fixed structuresMachinery and equipment
Budget growth driven by rise in personnel cost
MTEF BUDGET ALLOCATIONS
Programmes and Sub programmesRegions
Independent Bodies Earmarked Funds
Facilities Management
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2014/15 2015/16 2016/17
'000 '000 '000
Ministry 40 665 42 981 45 636
Management 62 171 69 812 74 826
Corporate Services 763 998 798 610 843 144
Office Accommodation 986 698 1 032 886 1 176 464
1 853 532 1 944 289 2 140 070
Programme 1: AdministrationDivision per sub programme
Corporate services (HR, Fin and IT ) major spending sub programme
Programme 1: Administration 2014/15Division per sub programme R’000
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MINISTRY40 665
2%
MANAGEMENT62 171
4%
CORPORATE SERVICES763 998
41%
OFFICE ACCOMMODATION986 698
53%
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Programme 2: Court ServicesDivision per sub programme
2014/15 2015/16 2016/17
'000 '000 '000
Constitutional Court 134 680 143 744 151 580
Supreme Court of Appeal 24 174 25 246 27 172
High Courts 366 424 389 824 430 005
Specialised Courts 39 821 41 968 45 885
Lower Courts 3 808 433 4 069 736 4 320 157
Family Advocate 177 410 187 952 193 833
Magistrate's Commission 15 088 16 333 19 293
Government Motor Transport 28 520 24 830 26 071
Facilities Management 1 034 261 978 076 1 250 552
Administration of Courts 431 676 454 949 477 683
6 060 487 6 332 658 6 942 231
465 Lower Courts 13 High Courts (R8.19m/court) ; (R28.19m/court)
Programme 2: Court Services 2014/15Division per sub programme R’000
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CONSTITUTIONAL COURT134 680
2.2%
SUPREME COURT OF APPEAL24 1740.4%
HIGH COURTS366 424
6.0%SPECIALISED COURTS
39 8210.7%
LOWER COURTS3 808 433
62.8%
FAMILY ADVOCATE
177 4102.9%
MAGISTRATE'S COMMISSION
15 0880.2%
GOVERNMENT MOTOR
TRANSPORT28 5200.5%
FACILITIES MANAGEMENT1 034 261
17.1%
ADMINISTRATION OF COURTS
431 6767.1%
Court Services: Regions
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Programme 3: State Legal ServicesDivision per sub programme
2014/15 2015/16 2016/17
'000 '000 '000
State Law Advisors 64 381 73 826 78 641 Litigation and Legal Services 331 072 353 492 376 149 Legislative Development and Law Reform 65 082 69 152 73 542 Master of the High Court 407 140 444 527 473 278 Constitutional Development 57 275 63 799 68 115
924 950 1 004 796 1 069 725
Programme 3: State Legal Services 2014/15Division per sub programme R’000
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STATE LAW ADVISORS64381
7%
LITIGATION AND LEGAL SERVICES331072
36%
LEGISLATIVE DEVELOPMENT AND LAW REFORM
650827%
MASTER OF THE HIGH COURT407140
44%
CONSTITUTIONAL DEVELOPMENT
572756%
State Legal Services2014/15
39
Programme 5: Auxiliary and Associated ServicesDivision per sub programme
2014/15 2015/16 2016/17
'000 '000 '000
Legal Aid South Africa 1 465 908 1 545 685 1 627 617
Special Investigating Unit 296 813 313 098 329 692
Public Protector of South Africa 217 584 230 397 242 608
South African Human Rights Commission 128 136 137 199 145 259
Justice Modernisation 961 588 1 029 048 1 074 390
President's Fund 1 1 1
3 070 030 3 255 428 3 419 567
Major spending area is on Legal Aid .. and mainly driven by increased personnel cost
Programme 5: Auxiliary Services 2014/15Division per sub programme R’000
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LEGAL AID SOUTH AFRICA; 1465908; 48%
SPECIAL INVESTIGATING UNIT; 296813; 10%
PUBLIC PROTECTOR OF SOUTH AFRICA; 217584; 7%
SOUTH AFRICAN HUMAN RIGHTS COMMISSION;
128136; 4%
JUSTICE MODERNISATION; 961588; 31%
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INDEPENDENT BODIES
Programme 2013/14 2014/15 2015/16 2016/17
Economic classification '000 '000 '000 '000
Transfer payments 1 989 854 2 108 442 2 226 380 2 345 177 6%
Legal Aid South Africa 1 375 442 1 465 908 1 545 685 1 627 617 6%
Special Investigating Unit 295 859 296 813 313 098 329 692 4%
Public Protector of South Africa 199 253 217 584 230 397 242 608 7%
South African Human Rights Commission 119 299 128 136 137 199 145 259 7%
President's Fund 1 1 1 1
Year on Year Growth 6% 6% 5%
Indicative Medium-term allocation
Annual
average
growth
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EARMARKED AMOUNTS 1
VOTE 22: JUSTICE AND CONSTITUTIONAL DEVELOPMENT (JUSTICE AND PROTECTION SERVICES)
Programme 2013/14 2014/15 2015/16 2016/17
'000 '000 '000 '000
940,167 986,698 1,032,886 1,176,464
784,635 844,463 784,114 1,046,892
308,141 541,390 587,952 609,915
248,934 - - -
-
DOJ&CD 81,425 - - -
NPA 167,509 - - -
LAB - - - -
Of Which
Reduction of Criminal case backlog
Property Management
Buildings and other fixed structures
Indicative Medium-term allocation
Integrated & Criminal Justice Programme
1. May not be used for other proposes than those specified
43
FACILITIES MANAGEMENT
2013/14 2014/15 2015/16 2016/17
'000 '000 '000 '000
940 167 986 698 1 032 886 1 176 464
784 635 844 463 784 114 1 046 892
29 407 31 171 32 885 34 661
95 694 101 436 107 015 112 793
53 954 57 191 60 337 63 595
33 023 28 520 24 830 26 071
1 936 880 2 049 479 2 042 067 2 460 476
Year on Year Growth 6% 0% 20%
Government motor Transport
Indicative Medium-term allocation
Property Management
Capital works
Upgrading of infrastructure
Day to Day maintenance
Rehabilitation
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FACILITIES MANAGEMENT
Property Management, 986 698 , 48%
Capital works, 844 463 , 41%
Day to Day maintenance, 31 171 ,
2%
Rehabilitation, 101 436 , 5%
Upgrading of infrastructure,
57 191 , 3%
Government motor Transport, 28 520 , 1%
45
TRANSFER OFFICE OF THE CHIEF JUSTICE
2013/14 2014/15 2015/16 2016/17
'000 '000 '000 '000
123 952 134 680 143 744 151 580
20 390 24 174 25 246 27 172
348 816 366 424 389 824 430 005
45 004 39 821 41 968 45 885
538 162 565 099 600 782 654 642
Year on Year Growth 5% 6% 9%
Indicative Medium-term allocation
Constitutional Court
Supreme Court of Appeal
High Courts
Specialised Courts
MEDIUM TERM SPENDING PRESSURES
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Medium Term: Spending Pressures
Additional accommodation and Leasing Costs
- Capital investment in new court infrastructure and additional office accommodation.
- Leasing costs due to delays in capital works: Lead times in capital works necessitates leasing
Personnel establishment expansion
- DOJ currently funding new courts with minimum concurrent additional allocations for personnel and
operational expenditure
- Regional capacitation – additional personnel for regions including court personnel (Interpreters, finance
and supply chain management personnel)
- Internship, learning and development and recruitment
Technical personnel adjustments
Compensation of employees – OSD for legally qualified personnel pay progression and performance awards
Funding for Commissions
- Marikana Commission extended until September 2014
- Arms Deal Commission
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Medium Term: Spending Pressures Implementation and roll-out cost of legislation –
Civil Jurisdiction of Regional Courts.
Child Justice and Children's Act
Superior Courts Act - High Courts for Mpumalanga and Limpopo - OCJ
Security and risk management
Guarding Services for new courts and Security Infrastructure for new and existing courts
Review of the Criminal Justice System
Implementation cost of recommendations after Cabinet and Parliamentary endorsement and approval
Increased proximity of courts services to all, especially in townships and rural areas
Replace branch courts to ensure that they provide full court services
Introduce multilingualism in courts