Presentation to the Portfolio Committee for Safety and Security

1
Presentation to the Portfolio Committee for
Safety and Security

• Annual Financial Statements 2003/04
• Department of Safety and Security
• 3 November 2004

2
Index

• Introduction
• Overview
• Departmental Receipts
• Departmental Payments
• Management Report
• Financial performance per programme
• Donor funding
• Financial Statements
• Income Statement
• Balance Sheet

3
Introduction

• PFMA 1999 stipulates that an Accounting Officer
  must submit within certain time frames
• An Annual Report on the activities of that
  reporting entity during that year
• The Annual Financial Statements for that year
  after those statements have been audited

4
Introduction

• Financial reporting demonstrates
• Information about the sources and allocation of
  financial resources
• Whether resources were obtained and used in
  accordance with the legally adopted budget,
  including financial limits established by
  appropriate legislative authorities
• Performance of the SAPS in the use of financial
  resources, compared to the planned resource
  utilisation
• Sustain and improve existing funding levels

5
Overview

• Departmental Receipts

R thousands 2000/01 Actual 2001/02 Actual 2002/03 Actual 2003/04 Target 2003/04 Actual deviation from target
Non-tax revenue 124 598 143 898 95 821 73 137 84 762 15,8
Capital revenue 1 844 22 418 2 000 2 132 6 367 198,6
Departmental revenue 53 332 62 370 43 432 54 940 67 022 21,9
TOTAL 179 774 228 686 141 253 130 209 158 151 21,5
Increased revenue as a result of more auctions
being held Surrendered to Revenue
Fund
6
Overview

• Voted funds and Departmental Payments

Programme R thousands Voted 2003/04 Rollovers and adjust-ments Total voted Virement Actual expendi-ture Variance
1. Administration 6 214 897 19 529 6 234 426 (279 634) 6 514 059 1
2. Crime Prevention 9 608 859 9 790 9 618 649 295 102 9 323 547 -
3. Operational Response Services 1 310 400 19 070 1 329 470 22 488 1 306 982 -
4. Detective Services 3 743 582 - 3 743 582 (9 223) 3 752 805 -
5. Crime Intelligence 595 678 16 522 612 200 (40 088) 652 288 -
6. Protection Services 411 050 18 549 429 599 11 355 418 244 -
TOTAL 21 884 466 83 460 21 967 926 - 21 967 925 1
7
Management Report

• Financial performance per programme
• Programme 1 Administration

Adjusted appropriation R000 Actual expenditure R000 Variance as a Virement
6 234 426 6 514 058 (4,49)

• Variance as a result of
• Critical equipment and inventory for newly
  enlisted functional members
• Day-to-day maintenance of policing infrastructure
• Expansion of vehicle fleet
• Modernization of computer infrastructure

8
Management Report

• Financial performance per programme
• Programme 2 Crime Prevention

Adjusted appropriation R000 Actual expenditure R000 Variance as a Virement
9 618 649 9 323 547 3,06

• Variance as a result of
• Enlistment of functional members realized at a
  later stage than originally anticipated
• Rearrangement of funds in order to provide for
  prioritized functional areas e.g Crime
  Intelligence

9
Management Report

• Financial performance per programme
• Programme 3 Operational Response Services

Adjusted appropriation R000 Actual expenditure R000 Variance as a Virement
1 329 470 1 306 982 1,69

• Variance as a result of
• Extent of the number of national special
  operations conducted decreased
• Functional reorganization in support of Sector
  Policing i.e establishment of Area Crime
  Combating Units

10
Management Report

• Financial performance per programme
• Programme 4 Detective Services

Adjusted appropriation R000 Actual expenditure R000 Variance as a Virement
3 743 582 3 752 805 (0,24)

• Variance as a result of
• Reprioritization in order to further enhance
  detective training / vehicles
• Continued enhancements in AFIS and Forensic
  technology environments e.g Palm Print
  functionality

11
Management Report

• Financial performance per programme
• Programme 5 Crime Intelligence

Adjusted appropriation R000 Actual expenditure R000 Variance as a Virement
612 200 652 288 (6,54)

• Variance as a result of
• Increased resourcing of this function, especially
  the purchasing of vehicles and human resources
• Continued emphasis as a result of newly
  established function/programme

12
Management Report

• Financial performance per programme
• Programme 6 Protection Services

Adjusted appropriation R000 Actual expenditure R000 Variance as a Virement
429 599 418 244 2,64

• Variance as a result of
• Limited number of major events took place
• Reduced maintenance costs as a result of a
  modernized armoured vehicle fleet

13
Management Report

• Donor funding (R18,745m R3,676m R15,390m
  R7,030m)
• To enhance and develop personnel management
  systems
• Training in the fields of serious, organized and
  commercial crimes
• Performance Charts and the development of
  performance management system
• Improving service delivery
• Capacity building (Human Resource and capital
  infrastructure Eastern Cape)
• Support in the field of Community Policing and
  crimes against women and children

14
Financial Statements

• Income Statement (Financial performance for the
  period)
• Revenue Expenditure Net
  surplus/deficit

Voted funds Current expenditure Capital expenditure Net surplus
Other revenue (External)
Donor funds
R000 R000 R000
22 129 753 21 983 315 146 438
21 967 926 21 967 925 1
158 151 - 158 151
3 676 15 390 (11 714)
15
Financial Performance

• Itemized priorities

Spending priority funded (As previously indicated) Implemented and spent
Additional personnel
IJS priorities
Radio Communication System Gauteng
Capital infrastructure
Modernization of computer technology
Modernization and expansion of vehicle fleet
Introduction of Death Grants
Pay progression and Incentive and Rewards
Scarce skills
Firearm Control Act
Automated Fingerprint Identification System (AFIS)
16
Financial Statements

• Balance Sheet (Financial position as at 31/3)
• Assets Liabilities Net
  assets

Current assets Current liabilities Net assets
Non-current assets
R000 R000 R000
183 922 153 017 30 905
(Financial Assets) (Recoverable revenue Foreign assistance rolled over)
17
Funding levels

• Sustain and improve existing funding levels

R30,1 bn
R28,7 bn
R26,8 bn
R24,5 bn
R21,9 bn

• Additional funding recommended over MTEF (05/06
  to 07/08) for
• (a) Additional personnel
• (b) Improved remuneration