The budget of DCS is aligned with the strategic objectives of the Department although there are changes due to the governmental environment we operate in (See slide 11 of Annexure A) and is as follows:
The processes that influence the final budget allocation/alignment with the Strategic Plan are as follows;
The yearly Strategic Planning process required by National Treasury versus a concept budget for 3 to 5 years within the MTEF period.
The prioritization process of Cabinet Legotla that impact directly on the priorities and resources allocated to the department
The management prerogative according to Section 43 of the PFMA with regard to virement.
PROGRAMME: SECURITY
ALLOCATED BUDGET: R 2 707 660 000
PURPOSE: To provide safe and healthy conditions for all persons incarcerated, in conditions consistent with human dignity, and thereby provide security for personnel and for the public.
MEASUREABLE OBJECTIVE:
Prevent all persons incarcerated from participation in criminal activities and escapes through the provision of an environment that ensures the safety of all persons under the department’s care and of the public.
KEY DEPARTMENTAL OBJECTIVE: STRATEGIC PLAN
 To provide the public with protection by preventing escapes and effectively supervising offenders in the community.
 To provide security for members, offenders, awaiting-trial detainees, community and service providers within Correctional Centres.
EXPENDITURE TRENDS:
Spending on Security comprises approximately 32,5 per cent of the vote over the medium-term. Spending is projected to increase by 5.6 per cent in 2004/05, 8.5 per cent in 2005/06 and 2 per cent in 2006/07. These increases are linked to the increases in operating cost associated with a higher projected daily average Correctional Centre population and especially the appointment of additional personnel. Expenditure with regard to the compensation of employees consumes approximately 96.9 per cent of this programme’s budget over the medium-term.
PROGRAMME: CARE
ALLOCATED BUDGET: R 756 656 000
PURPOSE: To provide needs based services aiming at maintenance of the well-being of persons incarcerated by facilitating physical fitness, nutrition, social links with families and society, spiritual and moral well-being, psychological well-being and health care.
MEASUREABLE OBJECTIVE:
Ensure the personal well-being of persons incarcerated through the provisioning of physical, spiritual and psychological care services, in order to align with internationally accepted conventions.

KEY DEPARTMENTAL OBJECTIVE: STRATEGIC PLAN
To improve the care services provided to all persons in the custody of the Department

EXPENDITURE TRENDS:
The Program Care consumes an average of 9,1 per cent of the total vote over the medium-term. Spending is projected to increase by 7,2 per cent in 2004/05, 5,9 per cent in 2005/2006 and 5,6 per cent in 2006/07 financial years. The increase in spending can be ascribed to the departmental commitment regarding the treatment of HIV/Aids, the financing of health services previously provided as a free service by Provincial Health Departments and the serving of three meals per day in accordance with section 8 (5) of the Correctional Services Act, Act 111 of 1998.

PROGRAMME: CORRECTIONS
ALLOCATED BUDGET R R503 256 000
PURPOSE: To provide needs-based correctional sentence plans, based on the assessment of security risk and criminal profile of individuals targeting all elements associated with the offending behavior /s, and focusing on the offence for which a person is sentenced to community correctional supervision, remand in correctional centre or paroled.

MEASUREABLE OBJECTIVE:
Address the specific rehabilitation needs of all persons who have been sentenced to community correctional supervision and/or remand in a correctional centre and paroled offenders, through regular assessment and provision of needs-based correctional programmes that contributes to a reduction in the recidivism rate.

KEY DEPARTMENTAL OBJECTIVE: STRATEGIC PLAN
 To enhance the implementation of Unit Management towards promoting restoration and humane treatment of offenders
 To develop and implement correction programmes in selected centres
 To promote societal ownership of corrections


EXPENDITURE TRENDS:
Spending on Corrections comprises approximately 5,8 per cent of the vote over the medium-term. Spending is projected to increase by 16,2 per cent in 2004/05, 4,6 per cent in 2005/06 and 3,4 per cent in 2006/07. This increase can be ascribed to the funding of the startup and operational cost of the new Remission and Parole Boards and reprioritization towards rehabilitation. Expenditure with regard to the compensation of employees is expected to continue dominating and will increase as a proportion of the programme from 88 per cent in 2003/04 to 88,3 per cent in 2006/07, mainly because of the appointment of additional Parole Boards personnel/ members.

PROGRAMME: DEVELOPMENT
ALLOCATED BUDGET: R 407 889 000
PURPOSE: To provide opportunities for social development and social consciousness, vocational and technical training, recreation, sports and education in order to promote the development of personal and social competencies that will enable offenders to reintegrate into communities as productive citizens.

MEASUREABLE OBJECTIVE:
Employable and productive citizens through the provision of needs based educational and other opportunities to offenders in order to easily reintegrate into communities.
KEY DEPARTMENTAL OBJECTIVE: STRATEGIC PLAN
To improve services aimed at the personal development of all offenders.

EXPENDITURE TRENDS:
Spending on Development comprises approximately 4,6 per cent of the vote over the medium-term. An increase by an average of 13,8 per cent per annum over the period 2000/01 to 2006/07 is expected.This is mainly due to the Department’s decision to place rehabilitation of offenders at the center of its activities. The increase of 26,7 per cent in the year 2004/05 can mainly be ascribed to the funding of a new activity Processable Material for the purchase of raw material for farms and workshops. In the past expenditure in this regard was defrayed against the programme Administration. Another reason for the increase is the enhancement of existing activities focussing on offender development such as education and training of offenders, sports, recreation and arts and culture.

PROGRAMME: ADMINISTRATION
ALLOCATED BUDGET: R 2 707 337
PURPOSE: To provide administrative, management, financial, information communication technology, service evaluation, investigative and support functions necessary for all service delivery by the department in support of the functions of the Ministry.

MEASUREABLE OBJECTIVE: Not required

KEY DEPARTMENTAL OBJECTIVE: STRATEGIC PLAN
 To provide effective and efficient financial management, accounting and supply chain services
 To ensure effective provision of legal services to DCS for sound decision-making and effective eradication of corruption
 To improve the human resource capacity to enable DCS to fulfil its mandate
 To ensure effective Information Management and Communication Technology Solutions and Services
 To ensure DCS becomes an analysis and research driven institution
 To enhance DCS participation in the international arena to benefit from the best practices
 To enhance accountability to Parliament on strategic and operational planning
 To ensure improved involvement in integrated governance
 To ensure Communication serves as a management tool and a vehicle for a social compact ‘on corrections
 To roll out the Implementation of the White Paper

EXPENDITURE TRENDS:
Spending on Administration is expected to increase by an average of 7,4 per cent per year from 2000/01 to 2006/07. Expenditure with regard to the compensation of employees is expected to continue dominating and will increase as a proportion of the programme from 57,7 per cent in 2003/04 to 58,2 per cent in 2006/07. The small increase over the MTEF can be ascribed to a reduced allocation for Medcor (Medical Aid Scheme for staff) as individual membership contributions to the medical aid increase. Main cost drivers in this programme include expenditure on the purchase of Bulk Stores, Information Communication Technology, Human Resource Development, Medical Aid and procurement of motor vehicles. The provision for bulk stores and medical aid accounts for 23,5 per cent and 23,1 per cent of the Administration budget in 2004/05, respectively. If they are excluded the proportion of the Vote that administration accounts for is reduced from 29,9 per cent to 16,1 per cent.

PROGRAMME: FACILITIES
ALLOCATED BUDGET: R 1 622 151 000
PURPOSE: To provide, maintain and upgrade the physical infrastructure required for taking care of those legally entrusted to DCS care, as well as required by personnel, aimed at ensuring availability of facilities pursuant to the rehabilitation responsibilities and objectives.

MEASUREABLE OBJECTIVE:
Support the department in its core function of security and corrections through the provision of well maintained physical infrastructure according to internationally accepted Correctional Centre facilities standards.
KEY DEPARTMENTAL OBJECTIVE: STRATEGIC PLAN
To provide facilities that are geared to support safe custody, humane conditions, provision of corrective services, care and development and general administration.
EXPENDITURE TRENDS:
Spending on Facilities comprises approximately 18, 9 per cent of the vote over the medium-term. Expenditure on the contractual commitments for the two public-private partnership Correctional Centers consumes on average 33,5 per cent of the programme over the medium term. Expenditure on capital works, which mainly focuses on the procurement and maintenance of offender accommodation, is on average 56, 3 per cent of the programme over the medium term. Expenditure on the sub programme Facilities Planning grew on average with 23, 4 per cent over the medium term, mainly to assist in providing additional offender bed space and to reduce offender overcrowding. The remaining 10.2 per cent is spent on the maintenance and upgrading of existing facilities as well as the administration and running of power supplies, water purification and installations.
PROGRAMME: AFTER CARE
ALLOCATED BUDGET R 318 729 000
PURPOSE: To provide services to persons incarcerated in preparation for the completion of sentences to facilitate social acceptance and effective reintegration into their communities.
MEASUREABLE OBJECTIVE:
Facilitation of the social acceptance and effective reintegration of persons incarcerated in preparation for the completion of their sentences in order to facilitate social acceptance and adherence to all applicable correctional and parole supervision conditions.

KEY DEPARTMENTAL OBJECTIVE: STRATEGIC PLAN
To make provision for all services focused on offenders in preparation for release, effective supervision and to facilitate re-integration into their communities.

EXPENDITURE TRENDS:
Spending on After-Care will grow on average by 7,6 per cent over a seven-year period from R227, 6 million in 2000/01 to R352, 8 million in 2006/07. The main cost driver in this programme is expenditure on probationers and parolees, which are projected to increase to 80 109 in 2004/2005, 84 555 in 2005/06 and 89 002 in 2006/07. The increase in projected parolee and probationers’ numbers are anticipated to be as a result of the wider application of the community corrections sentencing options by the courts and the implementation of Remission and Parole Boards legislation.

• DCS has submitted during August 2003 the Medium Term Budget Submission which included 3 year forward estimates for 2004/05-2006/07 together with 4 Options for additional funding. The negotiation process between management of DCS and the Medium Term Expenditure Committee took place during September 2003 after which Cabinet allocated the baseline allocation to the Department during November 2003.
  Attached please find a Budget process schedule of which the same principles were also applied to the 2004/05 financial year. (See Annexure B)
  The Departmental Budget Committee in accordance with a Financial Year Plan (Annexure C) further deal with financial management processes including the allocation of budgets to Regions, Management Area’s and Correctional Centres.
  Budgets are than allocated in accordance with the changed environment within the parameters of the Estimates of National Expenditure Allocations.
  Provision is made in Section 43 of the Public Finance Management act that Virement can be made by the Accounting Officer between main divisions (Programmes) if need be.