INYEARMONITORING IYM FOR 202021 FINANCIAL YEAR 30 SEPTEMBER

IN-YEAR-MONITORING (IYM) FOR 2020/21 FINANCIAL YEAR 30 SEPTEMBER 2020

Outline of the presentation n Part A: Summary of the National State of Expenditure up to September 2020 n Part B: Summary of the National State of Expenditure per programme up to 30 September 2020 n Part C: Summary of National State of Expenditure per economic classification up to 30 September 2020 n Part D: Summary of Departmental Revenue up to 30 September 2020 n Part E: COVID-19 Regional State of Expenditure per GFS up to 30 September 2020 n Part F: Overview on cost containment measures implementation 30 2

A. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE FOR THE YEAR TO DATE: 30 SEPTEMBER 2020 3

A. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 OVERVIEW: The year-to-date expenditure of the Department as at 30 September 2020 was R 12, 095 billion (46. 69%) against the spending plan of R 13, 460 billion (51. 96%) resulting in R 1, 364 billion underspending of the projected expenditure q The spending plan included in this analysis is the revised spending plan as approved by National Treasury on 20 August 2020 after the implementation of Special Budget Adjustment q The Minister of Finance tabled the 2020 Special Adjustment Budget on 24 June 2020 q During the AENE process, the following budget adjustments have been effected; Ø A virememt of R 374, 355 million from item: Compensation of Employees(Salaries and Wages) to Households: Post Retirement Benefits Ø A virement of R 1, 476 million to fund Judicial Inspectorate on Correctional Services (JICS) for Information technology services Ø A virement of R 2, 540 million shifted from Goods and Services to Machinery and Equipment for procurement of vehicles under JICS Ø Self financing amounting to R 623 thousand for offender gratuity Corrections on level 4 items that were approved in SAB adjustments; Ø R 23, 193 million for procurement of mattresses Ø R 600 thousand for procurement of generators Ø R 21, 041 million for funding leasing of quarantine sites (installation and rental) q The spending plan will be revised further later in the financial year after the AENE Bill has been enacted 4

B. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 5

B. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 30 000 Original budget 25 000 Actual expenditure to date Spending plan to date 20 000 Available budget 15 000 10 000 5 000 0 Administration Incarceration Rehabilitation Care Social Reintegration q Factors that contributed to the under-/ over spending per Programme are as follows: 6

B. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 q The actual spending of programme Administration is R 2, 222 billion (41. 91%) against the spending plan of R 2, 771 billion (52. 25%) resulting in R 549 million underspending as a result of the following: q Compensation of Employees: The actual spending of R 1, 487 billion (50. 43%) against the revised spending plan of R 1, 644 billion (55. 74%) resulting in R 157 million underspending due to the spending plan which has a Cost of Living Adjustment ( COLA) projection 7

B. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 q Compensation of Employees (cont): The Budget Committee resolved that Branch HR must clean up PERSAL so as to ensure a credible database for reconciliation with the HRBP tool. This process of aligning PERSAL to the HRBP Tool remains incomplete due to further cutting of posts which must be incorporated into this alignment. The permanent funded establishment as published in 2020 ENE was reported to be 5, 678 against permanent PERSAL establishment of 6, 846 resulting in a variance of 1, 168 posts q Hereunder is the analysis of filled and vacant posts as per HRBP tool and PERSAL as at 30 September 2020 q Goods and Services: The actual spending of R 407 million (38. 37%) against the revised spending plan of R 740 million (69. 68%) resulting in R 332 million underspending was mainly on items: Fleet Services, Travel and Subsistence due to National Lockdown as a result of COVID-19, the other contributing factors were on items Computer Services, Inventory: Food and Food Supplies and Consumables: Stationery, Printing and Office Supplies due to provision made for accruals/payables in the spending plan for the first two months of the 2020/21 financial year q Interest and Rent on Land: There was an expenditure of R 826 thousand incurred against a zero budget mainly due to interest paid on arrears salary in Head Office 8

B. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 q Transfers and subsidies: The actual spending of R 305 million (34. 82%) against the revised spending plan of R 257 million (29. 25%) resulting in R 49 million overspending mainly on item Households: Employee Social Benefits as a result of leave gratuities paid in the current financial year for the added financial obligation of early retirement without penalisation of pension benefits cases q Payments for capital assets: The actual spending of R 21 million (5. 09%) against the revised spending plan of R 130 million (31. 47%) resulting in R 109 million underspending was mainly on item: Transport Equipment due to delays in procurement of vehicles 9

B. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 10

B. ANALYSIS OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 q Programme Incarceration: The actual spending of programme Incarceration is R 7, 253 billion (48. 23%) against the revised spending plan of R 7, 919 billion (52. 66%) resulting in R 666 million underspending as a result of the following: q Compensation of Employees: The actual spending of R 5, 543 billion (50. 61%) against the revised spending plan of R 5, 699 billion (52. 04%) resulting in R 156 million underspending due to the spending plan which has a COLA projection q The Budget Committee resolved that Branch HR must clean up PERSAL so as to ensure a credible database for reconciliation with the HRBP tool. This process of aligning PERSAL to the HRBP Tool remains incomplete due to further cutting of posts which must be incorporated into this alignment. The permanent funded establishment as published in 2020 ENE was reported to be 26, 184 against permanent PERSAL establishment of 28, 359 resulting in a variance of 2, 175 posts q Hereunder is the analysis of filled and vacant posts as per HRBP tool and PERSAL as at 30 September 2020: 11

B. ANALYSIS OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 q Goods and Services: The actual spending of R 1, 584 billion (45. 48%) against the revised spending plan of R 1, 901 billion (54. 56%) resulting in R 317 million underspending due to provision made for accruals/payables on item Property Payments in the spending plan for the first two months of the 2020/21 financial year q Interest and Rent on Land: There was an expenditure of R 124 thousand incurred against a zero budget mainly due to interest paid on arrears salary in KZN region q Transfers and subsidies: The actual spending of R 54 million (33. 54%) against the revised spending plan of R 75 million (46. 00%) resulting in R 20 million underspending as a result of lower than anticipated leave gratuities due to service terminations q Payments for capital assets: The actual spending of R 72 million (16. 28%) against the revised spending plan of R 245 million (55. 60%) resulting in R 173 million under spending was mainly on item: Buildings and Other Fixed Structures due to lockdown level 5 and poor performance of Capital Works Programme 12

B. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 q The actual spending of programme Rehabilitation is R 890 million (44. 27%) against the revised spending plan of R 1, 042 billion (51. 85%) resulting in R 152 million underspending as a result of the following: q Compensation of Employees: The actual spending of R 736 million (50. 46%) against the revised spending plan of R 792 million (54. 36%) resulting in R 57 million underspending due to the spending plan which has a COLA projection 13

B. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 q Compensation of Employees (cont): The Budget Committee resolved that Branch HR must clean up PERSAL so as to ensure a credible database for reconciliation with the HRBP tool. This process of aligning PERSAL to the HRBP Tool remains incomplete due to further cutting of posts which must be incorporated into this alignment. Therefore aligning PERSAL to HRBP tool is anticipated to be finalised by 30 September 2020. The permanent funded establishment as published in 2020 ENE was reported to be 2, 163 against permanent PERSAL establishment of 2, 555 resulting in a variance of 392 posts q Hereunder is the analysis of filled and vacant posts as per HRBP tool and PERSAL as 30 September 2020: 14

B. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 q Goods and Services: The actual spending of R 144 million (27. 51%) against the revised spending plan of R 238 million (45. 44%) resulting in R 94 million underspending on item Inventory: Farming Supplies due to less procurement of animal feed as well as on item Inventory: Clothing Materials and Accessories and Consumable Supplies q The other contributing factor was on item: Inventory: Clothing Materials and Supplies as a result of orders for textile and toweling material that could not be placed early in the financial year due to the department awaiting for the finalisation of price adjustment process at National Treasury. However deliveries will mostly commence towards the end of 2 nd quarter and beginning of third quarter, as testing of material by SABS still needs to be undertaken q Transfers and subsidies: The actual spending of R 4, 504 million (6255. 56%) against R 49 thousand (68. 06%) revised spending plan resulting in R 4, 455 million overspending as a result of payment of leave gratuities due to service terminations q Payments for capital assets: The actual spending of R 5, 560 million (19. 68%) against the revised spending plan of R 11, 520 million (40. 77%) resulting in R 5, 960 million underspending on Machinery and Equipment as a result of delays in procurement of agricultural and workshop equipment 15

B. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 q The actual spending of programme Care is R 1, 249 billion (48. 73%) against the revised spending plan of R 1, 194 billion (46. 60%) resulting in an underspending of R 54 million as a result of the following: q Compensation of Employees: The actual spending of R 516 million (52. 43%) against the revised spending plan of R 510 million (51. 84%) resulting in R 6 million overspending 16

B. SUMMARY OF THE PRELIMINARY NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 q Compensation of Employees (cont): The Budget Committee resolved that Branch HR must clean up PERSAL so as to ensure a credible database for reconciliation with the HRBP tool. Man. Co will monitor progress on PERSAL clean up project. This process of aligning PERSAL to the HRBP Tool remains incomplete due to further cutting of posts which must be incorporated into this alignment. Therefore aligning PERSAL to HRBP tool is anticipated to be finalised by 30 September 2020. The permanent funded establishment as published in 2019 ENE was reported to be 1, 778 against permanent PERSAL establishment of 2, 055 resulting in a variance of 277 posts q Hereunder is the analysis of filled and vacant posts as per HRBP tool and PERSAL as at 30 September 2020: 17

B. ANALYSIS ON THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE: 30 SEPTEMBER 2020 q Goods and Services: The actual spending of R 716 million (46. 43%) against the revised spending plan of R 681 million (44. 18%) resulting in R 35 million overspending mainly items: Cons Supplies, Inventory: Other Supplies and Inventory: Medical Supplies as a result of expenditure incurred due to COVID-19 for procurement of PPEs, mattresses and medical supplies for DCS members and inmates q Transfers and subsidies: The actual spending of R 3, 788 million and (823. 48%) against the spending plan of R 364 thousand (79. 13%) resulting in R 3, 424 million overspending as a result of payment of leave gratuities due to service terminations higher than anticipated q Payments for capital assets: The actual spending of R 13, 169 million (36. 11%) against the spending plan of R 2, 563 million (7. 03%) resulting in R 10, 606 million overspending as a result of procurement of kitchen appliances in Eastern cape for renovations that took place in St Albans Management Area as well as in Western Cape at Pollsmoor Management Area 18

B. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 q The actual spending of programme Social Reintegration is R 482 million (48. 52%) against the revised spending plan of R 534 million (53. 77%) resulting in R 52 million under spending as a result of the following: q Compensation of Employees: The actual spending of R 443 million (50. 22%) against the revised spending plan of R 481 million (54. 48%) resulting in R 37 million underspending was due to the spending plan which has a COLA projection 19

B. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 q Compensation of Employees (cont): The Budget Committee resolved that Branch HR must clean up PERSAL so as to ensure a credible database for reconciliation with the HRBP tool. This process of aligning PERSAL to the HRBP Tool remains incomplete due to further cutting of posts which must be incorporated into this alignment. Therefore aligning PERSAL to HRBP tool is anticipated to be finalised by 30 September 2020. The permanent funded establishment as published in 2020 ENE was reported to be 1, 955 against permanent PERSAL establishment of 2, 243 resulting in a variance of 288 posts q Hereunder is the analysis of filled and vacant posts as per HRBP tool and PERSAL as at 30 September 2020 20

B. ANALYSIS OF THE NATIONAL STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 q Goods and Services: The actual spending of R 34 million (31. 54%) against the revised spending plan of R 52 million (47. 96%) resulting in R 18 million underspending due to outstanding invoices from DPW for Office Accommodation: Community Corrections for the month of August 2020 amounting to R 3 million and on items: Fleet Services and Travel and Subsistence due to National Lockdown as a result of COVID-19 q Transfers and subsidies: The actual spending of R 3, 460 million (1587. 16%) against R 190 thousand (87. 16%) revised spending plan resulting in R 3, 270 million overspending as result of payment of leave gratuities due to service terminations that are higher than the anticipated q Payments for capital assets: The actual spending of R 813 thousand (43. 71%) against the revised spending plan of R 867 thousand (46. 61%) resulting in R 54 thousand underspending on other: Machinery and Equipment due to delays in payment for financial lease invoices 21

C. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR TO DATE: 30 SEPTEMBER 2020 22

C. SUMMARY OF THE NATIONAL STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR TO DATE: 30 SEPTEMBER 2020 30 000 Original budget 25 000 Actual expenditure to date Spending plan to date 20 000 Available budget 15 000 10 000 5 000 0 Compensation of Employees Goods and Services Interest on Rent Transfers and on Land Subsidies Payment of Capital Assets Payment for Financial Asset 23

C. ANALYSIS OF THE PRELIMINARY STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR TO DATE: 30 SEPTEMBER 2020 Compensation of Employees q The actual spending of R 8, 725 billion (50. 65%) against the revised spending plan of R 9, 126 billion (52. 98%) resulting in an underspending of R 401 million due to the spending plan which has a COLA projection. The budget for 2020/21 COLA has been cut during the 2020 AENE q The department enrolled 1 032 students in learnership programme in the previous financial year effective from 28 October 2019. These 1 032 learners were suppose to complete the learnership programme by end of October 2020 but due to suspension of experiential learning phase as a result of COVID-19, the completion date still needs to be reviewed q The National Commissioner approved 843 application of Early Retirement without penalisation of pension benefits in line with DPSA circular dated 25 February 2019. The estimated financial implications for 2019/20 was R 225, 738 million and in March 2019 invoices of R 95, 993 million and R 104, 637 million were paid over to GEPF. In this current financial year an estimated amount of R 374, 355 million will be paid over GEPF q A virement of R 374, 355 million from Compensation of Employees to Transfers and Subsidies was approved by National Treasury on 7 September 2020 for early retirement without penalisation of pension benefits cases. This virement will form part of 2020 AENE q OSD phase 2 q The department has not yet finalised implementing OSD as per DBC resolution of 1 of 2016 which was signed on the 21 November 2016 for 23% in lieu of salary back pay for service termination cases. It is estimated that an amount of R 81, 906 million will be paid for OSD phase 2 24

C. ANALYSIS OF THE STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR TO DATE: 30 SEPTEMBER 2020 Compensation of Employees (cont): q. The Budget Committee resolved that Branch HR must clean up PERSAL so as to ensure a credible database for reconciliation with the HRBP tool. This process of aligning PERSAL to the HRBP Tool remains incomplete due to further cutting of posts which must be incorporated into this alignment. Therefore aligning PERSAL to HRBP tool is anticipated to be finalised by 30 September 2020. The permanent funded establishment as published in 2020 ENE was reported to be 37, 758 against permanent PERSAL establishment of 42, 058 resulting in a variance of 4, 300 posts q Hereunder is the analysis of filled and vacant posts as per HRBP tool and PERSAL as at 30 September 2020: q PERSAL reported a funded permanent establishment of 42, 058 of which 38, 808 are funded filled posts, 2, 849 posts are filled additional to the funded establishment, mostly on entry level, resulting in a total PERSAL head count of 41, 657, but leaving 3, 250 vacant funded posts (7. 73%) 25

C. ANALYSIS OF THE PRELIMINARY STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR TO DATE: 30 SEPTEMBER 2020 Compensation of Employees – Projected Over Expenditure q Currently the Co. E is projected to overspend due to the payment of additional standard and special danger allowances; appointment of SANDF members; and additional payment of overtime above the 30% threshold q The Co. E projections, as at end October 2020, were reviewed and it is estimated that the Co. E budget ceiling will be exceeded by R 273, 917 million q q The projections will be monthly reviewed so as to ensure that we down-manage the projected over expenditure With the directive to stop effective 01 November 2020 the additional standard and special danger allowances the projections will be revised down 26

C. ANALYSIS OF THE STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR TO DATE: 30 SEPTEMBER 2020 Goods and Services: q The actual spending of R 2, 886 billion (42. 95%) against the revised spending plan of R 3, 612 billion (53. 75%) resulting in an underspending of R 726 million due to provision made for accruals/payables in the spending plan for the first two months of the 2020/21 financial year for items such as Property Payments, Food and Food Supplies, Consumable: Stationery, Printing and Office supplies q Some of the payables were settled after the submission of the spending plan during March 2020 q Interest and Rent on Land: There was an expenditure of R 950 thousand incurred against a zero budget mainly due to interest paid on arrears salary in Head Office under Programme Administration 27

C. ANALYSIS OF THE STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE YEAR TO DATE: 30 SEPTEMBER 2020 Transfers and Subsidies: q The actual spending of R 371, 708 million (35. 72%) against the revised spending plan of R 331, 973 million (31. 90%) resulting in an overspending of R 39, 735 million as result of payment of leave gratuities due to service terminations that are higher than anticipated Payments for Capital Assets: q The actual spending of R 112 million (12. 19%) against the revised spending plan of R 390 million (42. 35%) resulting in an underspending of R 278 million mainly on item: Buildings and Other Fixed Structures due to lockdown level 5 and poor performance of Capital Works Programme as well as under Transport Equipment due to delays in procurement of vehicles 28

D. SUMMARY OF THE DEPARTMENTAL REVENUE FOR THE YEAR TO DATE: 30 SEPTEMBER 2020 q The revenue estimated was revised down from R 147, 869 million to R 144, 959 due to Covid-19 lockdown q In 2020/21 financial year, the actual revenue for 30 September 2020 is R 51 million (34. 59%) against the estimated revenue collection of R 56 million (37. 62%) resulting in under collection of R 4 million mainly on Fines, penalties and forfeits and interest, divided and rent on land q The department is mostly generating revenue from letting of accommodation facilities to personnel, selling of products made in correctional centres workshops and hiring out of offender labour q The offender labour also assist to supplement the budget for inmates’ gratuities. An amount of R 623 thousand will additionally be allocated to offender gratuity, this amount is included in the AENE 29

E. COVID-19 SUMMARY COVID -19 REGIONAL STATE OF EXPENDITURE PER ITEM LEVEL 4 FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 Economic Classification: 30

E. COVID-19 SUMMARY COVID -19 REGIONAL STATE OF EXPENDITURE PER ITEM LEVEL 4 FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 Economic Classification (Cont…): There is an actual spending of R 225, 508 million against the budget of R 606, 947 million. Up to 30 September 2020 there were 366 nurses appointed on contract in head office and regions. The non personnel expenditure is under Goods and Services for provision of PPEs, leasing of quarantine/isolation sites and medical supplies 31

E. COVID-19 REGIONAL STATE OF EXPENDITURE PER ITEM LEVEL 4 FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 There was an expenditure of R 67, 973 million incurred mostly under Goods and Services on items Inventory: Other supplies and Consumable Supplies due to procurement of mattresses and also for provision of PPEs and leasing of quarantine/isolation sites 32

E. COVID -19 REGIONAL STATE OF EXPENDITURE PER ITEM LEVEL 4 FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 There was an expenditure of R 30, 618 million was incurred due to Compensation of Employee for nurses and also for provision of PPEs and medical supplies 33

E. COVID -19 REGIONAL STATE OF EXPENDITURE PER ITEM LEVEL 4 FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 There was an expenditure of R 27, 520 million incurred under Compensation of Employees for nurses and also for provision of PPEs and medical supplies 34

E. COVID -19 REGIONAL STATE OF EXPENDITURE PER ITEM LEVEL 4 FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 There was an expenditure of R 16, 746 million incurred under Compensation of Employees for nurses and also for provision of PPEs and medical supplies 35

E. COVID -19 REGIONAL STATE OF EXPENDITURE PER ITEM LEVEL 4 FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 There was an expenditure of R 34, 147 million incurred under Compensation of Employees for nurses and also for provision of PPEs and medical supplies 36

E. COVID -19 REGIONAL STATE OF EXPENDITURE PER ITEM LEVEL 4 FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 There was an expenditure of R 32, 184 million incurred under Compensation of Employees for nurses and also for provision of PPEs and medical supplies 37

E. COVID -19 REGIONAL STATE OF EXPENDITURE PER ITEM LEVEL 4 FOR THE YEAR TO DATE : 30 SEPTEMBER 2020 There was an expenditure of R 16, 319 million incurred under Compensation of Employees for nurses and also for provision of PPEs and medical supplies 38

E. OVERVIEW ON COST CONTAINMENT MEASURES IMPLEMENTATION q The department furthermore reviewed the cost containment financial circular no. 3 of 2017/18 with an Addendum no. 2 that provides sub-delegations for deviations and withdrawal of embargo on the procurement of machinery and equipment which was effective from 1 February 2019 q The impact of the cost containment measures and year on year savings on targeted expenditure items is attached as Annexure A 39

Thank You THANK YOU STRIVING FOR A SOUTH AFRICA IN WHICH PEOPLE ARE AND FEEL SAFE