DOJ&CD 2014 Estimate of National Expenditure

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,

13

DOJ&CD2014 Estimates of National Expenditure and Spending

Trends

15

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

16

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

19

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

21

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

22

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

24

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

26

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

27

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

28

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

29

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

32

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

33

MINISTRY40 665

2%

MANAGEMENT62 171

4%

CORPORATE SERVICES763 998

41%

OFFICE ACCOMMODATION986 698

53%

34

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

35

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

36

37

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

38

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

40

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%

41

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

42

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

44

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

47

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

48

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