PRESENTATION TO PORTFOLIO COMMITTEE DATE: 19 MARCH 2013

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1 PRESENTATION TO PORTFOLIO COMMITTEE DATE: 19 MARCH 2013

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PRESENTATION TO PORTFOLIO COMMITTEE DATE: 19 MARCH 2013. CONTENTS. Introduction Budget versus Actual: 2012/13 Budget Allocation for the MTEF: 2013/14 to 2015/16 Breakdown of the allocation for 2013/14 Cost saving measures Allocation process of funding to fund Departmental Objectives - PowerPoint PPT Presentation

Transcript of PRESENTATION TO PORTFOLIO COMMITTEE DATE: 19 MARCH 2013

Page 1: PRESENTATION TO PORTFOLIO COMMITTEE DATE: 19 MARCH 2013

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PRESENTATION TO PORTFOLIO COMMITTEE

DATE: 19 MARCH 2013

Page 2: PRESENTATION TO PORTFOLIO COMMITTEE DATE: 19 MARCH 2013

CONTENTS• Introduction

• Budget versus Actual: 2012/13

• Budget Allocation for the MTEF: 2013/14 to 2015/16

• Breakdown of the allocation for 2013/14

• Cost saving measures

• Allocation process of funding to fund Departmental Objectives

• Budget 2013/14 – Per Programme

• Progress in addressing audit opinion of 2011/12

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INTRODUCTION

• The purpose of the presentation is to outline the projected expenditure for 2012/13 and the MTEF allocation for 2013-2016

• The presentation will also outline the steps taken by the Department to allocate the budget for 2013/14 financial year to different programmes and sub programmes in order to deliver on the strategic plan of DHA.

• A budget committee meeting was held on 6 February 2013, where business units and provinces submitted the split of their budget. Few proposal were given to the meeting in terms of cost saving measures how to fund certain prioritised objectives.

• This presentation is the results of that budget committee meeting and a subsequent meeting held on 13 February 2013.

• The presentation will also cover the progress in resolving audit issues raised by AG during the 2011/12 financial year audit report.

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BUDGET VERSUS ACTUAL: 2012/13

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Note:In terms of the projections, the Department is likely to spend 99.5% of its budget, excluding the earmarked funds for DHA modernisation project.

ECONOMIC CLASSIFICATION BUDGET TOTAL

EXPENDITURE as at 14/03/13

PROJECTED EXPENDITURE

TOTAL EXPENDITURE

DIFFERENCE % SPENT

R'000 R'000 R'000 R'000 R'000 %COMPENSATION OF EMPLOYEES 2 215 979 1 992 200 177 648 2 169 848 46 131 97.9%DEPARTMENTAL AGENCIES & ACCOUNTS 967 348 967 218 4 967 221 126 100.0%GOODS AND SERVICES 1 893 956 1 671 797 145 669 1 817 465 76 490 96.0%HOUSEHOLDS (HH) 11 303 11 237 4 11 241 62 99.5%INTEREST AND RENT ON LAND 2 2 - 2 0 97.0%MACHINERY AND EQUIPMENT 98 166 68 993 23 803 92 796 5 369 94.5%PAYMENTS FOR FINANCIAL ASSET 45 653 322 - 322 45 331 0.7%PROVINCIAL AND LOCAL GOVERNMENTS 1 493 486 - 486 1 007 32.6%SOFTWARE & INTANGIBLE ASSETS 9 988 581 6 364 6 946 3 043 69.5%Grand Total 5 243 888 4 712 837 353 492 5 066 328 177 560 96.6%WAIO 214 862 41 962 18 823 60 785 154 077 28.3%REVISED 5 029 026 4 670 875 334 668 5 005 543 23 483 99.5%

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BUDGET ALLOCATION - MTEF

  2012/13R’000

2013/14R’000

2014/15R’000

2015/16R’000

Vote 4 : Home Affairs 4,276,678 4,771,910 5,138,588 5,011,158

FBP 69,835 82,675 78,901 82,923

IEC 762,156 1,579,179 1,675,713 1,669,311

GPW 135,219 134,005 - -

TOTAL 5,243,888 6,567,769 6,893,202 6,763,392

The MTEF allocation for the Department of Home Affairs is as follows:

Note:1.An amount of R1 billion and R260 million was allocated over the MTEF period for the DHA modernisation projects and border posts infrastructure respectively. No additional operating funding has been allocated to the Department for the MTEF period. The increase when comparing year on year is due to the allocation of earmarked funds and the cost of living adjustments relating to Compensation of Employees. This is further broken down in the next slide.2.The increase in the IEC Allocation in respect of the Represented Political Parties Fund. This is a function shift from Department of Justice and Constitutional Development.

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MTEF: PER PROGRAMME

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2013/14 2014/15 2015/16 PER PROGRAMME R'000 R'000 R'0001: ADMINISTRATION 1 572 522 1 871 570 2 068 220 2: CITIZEN AFFAIRS 3 094 162 4 048 711 4 148 053 3: IMMIGRATION AFFAIRS 577 204 647 488 676 929 Total 5 243 888 6 567 769 6 893 202 Add Function Shift: Dept of Justice - Political Parties Fund (Prog 2: Citizen Affairs - Electoral Commission) 109 180 - - Total of subprogrammes 5 353 068 6 567 769 6 893 202

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BUDGET ALLOCATION - PER ECONOMIC CLASSIFICATION

ECONOMIC CLASSIFICATION R’000 R’000

  2013/14 2012/13

Compensation of Employees 2,538,205 2,390,119

Goods and Services 2,218,716 1,883,461

- Non-earmarked funds 1,259,896 1,314,494

- Earmarked funds 958,820 568,967

o Border Post Infrastructure 130,000 0

o DHA Modernisation 348,993 214,862

o African Nations Championship 6,000 0

o African Cup of Nations 0 15,000

o Property Payments 473,827 339,105

Machinery and Equipment 10,841 365

Provincial and Local Governments 1,393 1,265

Households 2,755 1,468

TOTAL 4,771,910 4,276,678

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COST SAVING MEASURES

• Over the current and next financial year, the Department has identified the following cost saving measures:

– In the 2012/13 financial year, the following cost saving measures were implemented:• 25% reduction in entertainment budget• 50% reduction in catering and venues and facilities

– For the 2013/14 financial year, the following measures have been identified and will be further discussed at Budget Committee:

• 25% reduction in the catering budget for Provinces• 40% reduction in the catering budget for Branches• 25% reduction in the venues and facilities budget for Branches and Provinces

– The results for the above cut was allocated to fund the shortfall in Deportation.

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REVISED BUDGET ALLOCATION REVISED COE REVISED G&S TOTAL

PROGRAMME 1: ADMINISTRATION 356 012 595 724 513 140 1 080 525 735 MINISTRY 16 777 739 22 403 000 39 180 739 MINISTER 10 685 279 12 908 000 23 593 279 DEPUTY MINISTER 6 092 460 9 495 000 15 587 460

MANAGEMENT SUPPORT SERVICES 51 900 525 46 847 000 98 747 525 DIRECTOR GENERAL 9 217 255 2 755 000 11 972 255 AUDIT SERVICES 10 934 894 10 117 000 21 051 894 INTERGOVERNMENTAL RELATIONS 6 850 694 2 107 000 8 957 694 LEGAL SERVICES 15 779 851 25 371 000 41 150 851 POLICY AND STRATEGIC MANAGEMENT 9 117 832 6 497 000 15 614 832

CORPORATE SERVICES 287 334 331 655 263 140 942 597 471 BRANCH: COMMUNICATION SERVICES 18 323 504 18 099 000 36 422 504 BRANCH: COUNTER CORRUPTION AND SECURITY SERVICES 46 640 987 114 622 400 161 263 387 BRANCH: FINANCE AND SCM 77 026 564 193 672 690 270 699 254 BRANCH: HUMAN RESOURCES 66 883 889 30 744 000 97 627 889 BRANCH: INFORMATION SERVICES 48 441 198 272 743 000 321 184 198 BRANCH: LEARNING ACADEMY 30 018 189 25 382 050 55 400 239

This programme includes the following items:•DHA Modernisation•Property Payments•Security for all DHA buildings

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REVISED BUDGET ALLOCATION REVISED COE REVISED G&S TOTAL

PROGRAMME 2: CITIZEN AFFAIRS 1 863 010 628 338 400 500 2 201 411 128 BRANCH: CIVIC SERVICES 212 362 290 184 030 500 396 392 790

PROVINCES 1 650 648 337 154 370 000 1 805 018 337 EASTERN CAPE 198 841 538 24 800 000 223 641 538 FREESTATE 134 031 849 10 106 000 144 137 849 GAUTENG 356 835 562 26 684 000 383 519 562 KWAZULU NATAL 190 548 277 19 500 000 210 048 277 LIMPOPO 221 921 945 20 469 000 242 390 945 MPUMALANGA 174 621 050 14 523 000 189 144 050 NORTH WEST 145 620 805 15 428 000 161 048 805 NORTHERN CAPE 75 081 987 10 823 000 85 904 987 WESTERN CAPE 153 145 325 12 037 000 165 182 325

PROGRAMME 3: IMMIGRATION AFFAIRS 261 982 923 326 982 360 588 965 284 BRANCH: IMMIGRATION SERVICES 261 982 923 326 982 360 588 965 284

Budget allocation towards PMDS 12 000 000 12 000 000

TOTAL 2 493 006 146 1 389 896 000 3 882 902 146 TOTAL as per ENE budget 2 538 205 000 1 389 896 000 3 928 101 000 Difference - to fund the shortfall in APP 45 198 854 -0 45 198 854

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REVISED BUDGET 2013/14 – PER PROGRAMME

The allocation per programme can be summarised as follows:

REVISED COE REVISED G&S TOTALPROGRAMME 1: ADMINISTRATION 356 012 595 1 553 333 140 1 909 345 735 PROGRAMME 2: CITIZEN AFFAIRS 1 863 010 628 338 400 500 2 201 411 128 PROGRAMME 3: IMMIGRATION AFFAIRS 261 982 923 372 181 214 634 164 138 Budget allocation towards PMDS 12 000 000 - 12 000 000 Machinery and Equipment - 10 841 000 10 841 000 Provincial and Local Governments - 1 393 000 1 393 000 Households - 2 755 000 2 755 000

2 493 006 146 2 278 903 854 4 771 910 000

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PROGRESS IN ADDRESSING AUDIT OPINION OF 2011/12

• Overall– An action plan was developed and action steps put in place together with timeframes– The action plan was presented to all the Departments’ Governance Structures and also to Audit Committee – The progress on the action plan is reported to Audit Committee at each meeting of the Committee– Between the Audit Committee meetings, the plan is monitored by an internal committee called Back to

Basics– Internal audit has also been asked to review progress in terms of the action plan

• Qualification matter– In address the qualification matter, the Department is 85% complete in re-calculating the balance as

reported in 2011/12– All re-calculations has been reviewed and the review notes is being attended to– In terms of the information for the 2012/13 financial year, all documents for the period April 2012 to January

2013 has been collected and is subject to review by DHA.– In terms of the relationship between DHA and DIRCO, the following measures have been put in place:

• Monthly DG to DG meeting• Weekly meetings at an operational level which feeds into the DG to DG meeting• Review of the current MOU with DIRCO

• Performance information– Submitted an errata for the 2012/13 APP– Submitted strategic plan for 2013/14 and awaiting AG written report.– High level findings were presented and APP adjusted accordingly

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THANK YOU

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