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Building a caring correctional system that truly belongs to all

SELECT COMMITTEE BRIEFING 2007 Estimates of National Expenditure. Building a caring correctional system that truly belongs to all. ESTIMATES OF NATIONAL EXPENDITURE CONTENT PRINCIPLES OF CALCULATIONS FOR THE ALLOCATION PRINCIPLES APPLIED ON A MORE DETAILED LEVEL PER ECONOMIC CLASSIFICATION

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Building a caring correctional system that truly belongs to all

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  1. SELECT COMMITTEE BRIEFING 2007 Estimates of National Expenditure Building a caring correctional system that truly belongs to all

  2. ESTIMATES OF NATIONAL EXPENDITURE CONTENT PRINCIPLES OF CALCULATIONS FOR THE ALLOCATION PRINCIPLES APPLIED ON A MORE DETAILED LEVEL PER ECONOMIC CLASSIFICATION COST DRIVER BASELINE BEFORE REDUCTION REDUCTION MIN COM BUD REINSTATEMENTS ADDITIONAL FUNDING ENE ALLOCATION PER PROGRAMME ENE ALLOCATION PER GFS

  3. 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 ALLOCATION

  4. 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) PRINCIPLES OF CALCULATIONS FOR THE ALLOCATION

  5. PRINCIPLE APPLIED ON A MORE DETAIL LEVEL PER ECONOMIC CLASSIFICATION: Current Payments: Compensation of Employees: Baseline for establishment:

  6. 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 PRINCIPLE APPLIED ON A MORE DETAIL LEVEL PER ECONOMIC CLASSIFICATION: Current Payments: Compensation of Employees: Budgeted Posts

  7. 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 PRINCIPLE APPLIED ON A MORE DETAIL LEVEL PER ECONOMIC CLASSIFICATION: Current Payments: Compensation of Employees: Principles applied during ENE Preparation

  8. 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 PRINCIPLE APPLIED ON A MORE DETAIL LEVEL PER ECONOMIC CLASSIFICATION: Current Payments: Compensation of Employees: Principles applied to allocate allowances

  9. 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 PRINCIPLE APPLIED ON A MORE DETAIL LEVEL PER ECONOMIC CLASSIFICATION: Current Payments: Compensation of Employees: Principles applied to allocate allowances

  10. 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. PRINCIPLE APPLIED ON A MORE DETAIL LEVEL PER ECONOMIC CLASSIFICATION: Current Payments: Compensation of Employees: Interim promotion

  11. 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:

  12. 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:

  13. 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 PRINCIPLE APPLIED ON A MORE DETAIL LEVEL PER ECONOMIC CLASSIFICATION

  14. COST DRIVER: OFFENDER POPULATION • 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.

  15. 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.

  16. ENE BASELINE BEFORE REDUCTION

  17. REDUCTION MIN COM BUD

  18. REINSTATEMENT RECOMMENDED * DCS TO MAINTAIN 5% VACANCY RATE DECREASING TO 3% IN OUTER YEAR IN LINE WITH REDUCED BUDGET

  19. ALLOCATION LETTER: ADDITIONAL FUNDING

  20. ENE BASELINE ALLOCATIONS 2006/2007 - 2009/2010 R’000

  21. ENE ALLOCATION: PER PROGRAMME

  22. ENE ALLOCATION PER GFS STRUCTURE

  23. An Age of Hope: a National Effort for Corrections, Rehabilitation and Social Re-integration of Offenders THANK YOU THANK YOU An Age of Hope: A National Effort for Corrections, Rehabilitation and Social Re-integration of Offenders

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