ATC151020: Budget Review and Recommendation Report of the Portfolio Committee on Police on the Civilian Secretariat for Police (CSP), dated 20 October 2015

Police

BUDGET REVIEW AND RECOMMENDATION REPORT OF THE PORTFOLIO COMMITTEE ON POLICE ON THE CIVILIAN SECRETARIAT FOR POLICE (CSP), DATED 20 OCTOBER 2015
 

The Portfolio Committee on Police, having considered the financial and service delivery performance of the Civilian Secretariat for Police (CSP) for the 2014/15 financial year, reports as follows:

1. INTRODUCTION

 

1.1        Description of the core functions of the Secretariat

 

The Civilian Secretariat for Police (CSP) derives its mandate from the Constitution and the Civilian Secretariat for Police Service Act No 2 of 2011. Section 208 of the Constitution states that a Civilian Secretariat for the Police should be established by national legislation to function under the direction of the Minister of Police.

 

The CSP became a designated department with the Secretary for Police as the Accounting Officer in April 2014 and until then, was still functioning as a cost centre under the Administration Programme (Programme 1) of the SAPS in 2013/14. The Secretariat is a designated department and has attained its own vote for the 2014/15 financial year. For the purposes of the 2014/15 financial year, the Secretariat no longer functions under the auspices of the SAPS.

 

1.2        Purpose of the BRR Report

 

Section 5 (2) of the Money Bills Procedures and Related Matters Amendment Act (Act 9 of 2009) allows for each Committee to compile a budgetary review and recommendation report (BRRR) which must be tabled in the National Assembly.  Section 5(3) provides for a budgetary review and recommendation report to contain the following:

 

a)         an assessment of the department’s service delivery performance given available             resources;

b)         an assessment on the effectiveness and efficiency of departments use and forward        allocation of available resource; and

c)         recommendations on the forward use of resources

 

In October of each year, portfolio committees must compile Budgetary Review and Recommendation Reports (BRRR) that assess service delivery performance given available resources; evaluate the effective and efficient use and forward allocation of resources; and may make recommendations on the forward use of resources. The BRRR are also source documents for the Standing/Select Committees on Appropriations/Finance when they make recommendations to the Houses of Parliament on the Medium-Term Budget Policy Statement (MTBPS). The comprehensive review and analysis of the previous financial year’s performance, as well as performance to date, form part of this process.

 

The Portfolio Committee has overseen the performance of the Department for the 2014/15 financial year and the Committee was briefed on the annual performance for 2014/15 of the Department on 15 October 2015. The Committee also met with the Auditor-General on the audit outcomes on 13 October 2015.

This report is structured as follows:

• Section 1: Sets out the mandate of the Committee, the purpose of this report                                   (Budgetary Review and Recommendation Report) and the process to                                         develop this report.
• Section 2: Provides an overview of the CSP’s Vote and spending for 2014/15 as well                        as for part of 2015/16 (first quarter) and sets out the Department’s MTEF                          submission to National Treasury for 2016/17.
• Section 3: Summarises the 2014/15 report of the Auditor General for the CSP.
• Section 4: Summarises performance information per Programme for 2014/15.
• Section 5: Highlights key observations of the Committee with respect to financial and                       performance information for 2014/15.
• Section 6: Summarises additional information requested from the Department in                               deliberations and other reporting requirements.
• Section 7: Summarises recommendations of the Committee.
• Section 8: Conclusion.

 

2.         OVERVIEW OF CSP VOTE AND EXPENDITURE

2.1.       Financial performance for 2014/15 FY

In the 2014/15 FY, the Secretariat received a main appropriation of R99.798 million and functioned as a transitional department (budget still located within the SAPS Vote). Notwithstanding various shifts between programmes, the Secretariat’s main appropriation remained unchanged during the adjustments period with a Final Appropriation of R99 789 million. At the end of the fourth quarter of the 2014/15 FY, the Secretariat had spent R82.395 million of its R99.798 million allocated budget (or 82.6 per cent of the total). This means that R17.403 million (17.5 per cent) of its total budget was unspent at year-end. This is an improvement on the underspending of R23.791 million recorded at the end of the previous financial year (2013/14).

The Administration Programme received an adjusted appropriation of R32.371 million for the year, which was adjusted downwards to a final appropriation of R31.557 for the 2014/15 FY. The Programme spent R31.163 million (98.8%) of its final allocation and this resulted in R394 thousand under expenditure. An amount of R814 thousand was shifted to other Programmes within the Secretariat.

The Intersectoral Coordination and Strategic Partnerships Programme received an adjusted appropriation of R19.493 million. However, an amount of R4.242 million was shifted from other Programmes to this Programme- resulting to an upward adjustment and final appropriation of R23.735 million, which was all spent (100.0%) at the end of the 2014/15 FY.

The Legislation and Policy Development Programme received an adjusted appropriation allocation of R28.427 million for the year 2014/15, which was adjusted downwards to a final appropriation of R26.549 for the 2014/15 FY. The Programme spent R13.195 million (49.7%) of its final allocation and this resulted to R13.354 million under expenditure. An amount of R1.878 million was shifted to other Programmes within the Secretariat.

The Monitoring and Evaluation Programme received an adjusted appropriation of allocation of R19.507 million for the year, which was adjusted downwards to a final appropriation of R17.957 for the 2014/15 FY. The Programme spent R14.302 million (79.6%) of its final allocation and this resulted to R3.655 million under expenditure. An amount of R1.550 million was shifted to other Programmes within the Secretariat.

In terms of economic classification, Current payments received the bulk allocation of R98.788 million for the 2014/15 FY. Under Current Payments, the largest portion of R69.371 million went to Compensation of Employees, which remained unchanged throughout the 2014/15 FY. An amount of R60.920 million (87.8%) was spent from the Compensation of Employees’ budget, resulting in R8.451 million under expenditure. More so, under Current Payments an additional amount of R29.417 was allocated to Goods and Services budget item. But of that amount, only R21.155 million was spent (71.9%), resulting in R8.262 million under expenditure.

The Payments for Capital Assets account was allocated R1.005 million for the reporting period, of which it spent R315.000 thousand (31.3%). This resulted in under expenditure of R690.000 thousand.

Table 1: Departmental Expenditure 2014/15

Programmes	Adjusted             Appropriation R’000)	Final Appropriation (R’000)	Actual Expenditure (R’000)	(Over)/Under Expenditure (R’000)	Expenditure as % of total (%)		Adjusted Appropriation (R’000)
Administration	32 371	31 557	31 163	394		98.8%	67 102
Intersectoral Coordination and Strategic Partnerships	19 493	23 735	23 735	-		100.0%	3 529
Legislation and Policy Development (for 2014/15 legislation was not part of this programme)	28 427	26 549	13 195	13 354		49.7%	2 025
Legislation (in 2013/14 it was a stand-alone programme)	-	-	-	-		-	1 380
Civilian Oversight, Monitoring and Evaluation	19 507	17 957	14 302	3 655		79.6%	8 798
Total	99 798	99 798	82 395	17 403		82.6%	82 834

 

 

 

 

 

3.  REPORT OF THE AUDITOR GENERAL

The Auditor-General (AG) Report on the Secretariat’s performance for the 2014/15 highlighted a number of issues as indicated below.

Qualified Audit Opinion: The Secretariat received a qualified audit opinion. The qualified audit outcome of the CSP was caused by the fact that it is a newly designated department that is still in transition, as such the Department’s internal controls had not yet been implemented effectively to substantiate commitments, accruals and employee benefits, mainly due to the instability of the acting chief financial officer (CFO) position. Specifically, the reasons for the qualification included:

• Commitments: No adequate system in place to ensure records of commitments when goods were procured, but not yet delivered. (Note 14: R19 million)
• Accruals: No adequate system in place to ensure records of accruals when goods received but not yet paid. (Note 15: R5.569 million)
• Employee benefits: Insufficient information to verify the accuracy of schedules on employee benefits. (R4.279 million)
•  

• Emphasis of Matter: The AG Report drew attention to the fact that the Department has materially under spent its budget on Programme 3 and Programme 4 to the amount of R13 354 000 and R3 655 000 respectively.

• Programme 3: A total number of 22% of the targets under Programme 3 were not specific and 33% of the indicators were not well defined.
• Programme 4: The target on oversight visits to police stations was not reliable when compared to the source information or evidence provided and/or adequate and reliable corroborating evidence could not be provided. 46% of the oversight visits to police stations was not valid and accurate as the national monitoring tool that is used by the provinces to report on this indicator was not accurately completed. Furthermore, the CSP did not have proper systems and procedures in place to validate the information submitted.

• Non-compliance with legislation: The financial statements submitted for auditing were      not prepared in all instances in accordance with the prescribed financial reporting framework and supported by full and proper records as required by section 40(1)(a) and (b) of the PFMA. The Strategic Plan for the 2014-2019 period was not approved timeously by the Minister of Police as required by Treasury Regulation 5.1.1. The Department did not in all instances maintain effective and efficient internal controls regarding performance management. Procedures for quarterly reporting to the Minister of Police and the facilitation of effective performance monitoring, evaluation and corrective action were not established as required by Treasury Regulation 5.3.1. Information systems were not in place to monitor performance.
• Procurement and Contract Management: Sufficient appropriate audit evidence could       not be obtained that quotations were awarded to suppliers whose tax matters have been declared by the South African Revenue Services to be in order as required by Treasury Regulations 16A9.1(d).
• Human Resource: Employees were appointed without following a proper process to verify the claims made in their applications in contravention of Public Service Regulation 1/VII/D.8. A human resource plan was not implemented.
• Audit Committee: The Audit Committee was also not in place for the first 7 months of the financial year.
• Internal Audit: This competence did not address the operational procedures and monitoring mechanisms as per the Treasury Regulations.
• Leadership: Management did not in all instances ensure that the Department implements sufficient monitoring controls to financial and performance information as well as compliance.

 

Irregular expenditure:

 

Irregular expenditure of R7. 647 million was incurred during the year under review. This irregular expenditure was related to payments and services rendered by a number of service providers. The bulk of this amount (R7. 378 million) was due to payments made to Wings Naledi Travel Agency; R125 000 to Topco Media and R83 000 to Van Wyk Coaches.7 Other incidents where irregular expenditure was reported include the following service providers: Manto Management Facilitation Eastern Cape (R30 000); Indoni Transportation Eastern Cape (R 11 000) and Birchwood Hotel (R20 000). In all seven incidents of irregular expenditure, it was reported that investigations are still underway, so no disciplinary steps or criminal proceedings have been instituted. It should be noted that R7.649 million comprises almost 9 % of the total expenditure of the Secretariat for 2014/15. It is thus a serious concern.

 

Unauthorised expenditure:

 

The Secretariat did not incur any unauthorised nor fruitless and wasteful expenditure during the year under review.

 

Underspending:

 

The underspending of R17. 4 million (17.5 per cent of the final appropriation) is attributed to unfilled vacancies as well as goods and services that were ordered but not delivered. As reported to the Committee this includes R17 million for a SITA contract that was not delivered during the 2014/15 financial year.

 

4.         PROGRAMME PERFORMANCE

 

Programme 1: Administration Programme

 

The purpose of the Administration Programme is to provide administrative support, strategic leadership and management for the Department.

 

Table 2: Expenditure for Programme 1: Administration Programme

1: Administration	2014/15	2013/14
Final Appropriation (R’000)	31 557	34 679
Actual Expenditure (R’000)	31 163	26 806
Expenditure as % of total (%)	98.8%	77.29%
Variance/Over/Under-Expenditure (R’000)	R394 000	R7. 873 million

 

The final appropriation for the Administration Programme was R31, 577 million of which it spent R31, 163 million or 98, 8% of its budget with a variance of R394 000 in the 2014/15 financial year compared to R 7, 873 million

 In terms of economic classification, the following should be noted:

• Current payments account had a final appropriation of R30, 978 million, of which all of it was spent at the end of the FY (100.0%).

• The Compensation of employees account had a final appropriation of R26, 311 million, of which all of it was spent at the end of the financial year. This is a marked improvement when compared to R8, 459 million that was unspent at the end of the 2013/14 FY (31.2 per cent variance).

• Goods and services:

• The Advertisements account had an allocation of R417 000, of which all of it was spent at the end of the financial year
• The Travel and subsistence had an allocation of R1 390 million, of which all of it was spent at the end of the financial year.
• The Leases account had an allocation of R501 000, which was all spent at the end of the financial year.
• The Operating expenditure account was allocated R176 000 at the start of the 2014/15 FY, which was all spent at the end of the financial year.

• The Payments for capital assets account (machinery and equipment) was allocated R574 000, of which it only spent R180 000 of its allocation. This gives the account a negative variance of R394 000 or 31.4% per cent.

 

4.1        Programme Performance: Administration

 

The Secretariat listed a total of twenty-six (26) performance indicators with corresponding measurable targets for the Administration Programme in 2014/15, of which it achieved 92% or 24 of the predetermined targets. The success rate of 92% recorded in the reporting period shows a slight improvement from 90.5% recorded during 2013/14 FY.

 

Although the programme structure changed, there was no fundamental difference between the current and previous financial year targets. But more importantly, the overhaul and/or removal of Sub-sub-programmes managed to address the complexity of the performance targets that was created in the previous reporting period.

 

4.1.1     Sub-programme 1.1: Department Management

 

The purpose of this sub-programme is to provide strategic support to the Secretary of Police. The Department Management (formerly known as the Office of the Secretary) Sub-programme identified seven performance indicators with their corresponding performance indicators in 2014/15 FY. This has seen the Sub-programme’s indicators decreasing from the seventeen (17) performance indicators identified in the previous financial year (2013/14). During the reporting period, this sub-programme achieved all its planned targets (100%).

 

 

 

 

 

 

Table 3: Actual Performance against target for Sub-programme 1.1: Department Management Performance

 

Performance indicator		Actual performance against target				Reasons for variance
		Target		Actual
1.	Number of Annual Reports submitted within prescribed time	1		1		Target achieved
2.	Number of Strategic Plans submitted within prescribed time frame	1		1		Target achieved
3.	Number of Annual Performance Plans submitted within prescribed time frame	1		1		Target achieved
4.	Number of Quarterly Reports submitted within prescribed time frame		4		4		Target achieved
5.	Number of strategic IPID forums facilitated		4		4		Target achieved
6.	Number of strategic Provincial Heads of Department forums facilitated		4		4		Target achieved
7.	Number of Strategic MINMEC forums facilitated		4		4		Target achieved

Source: 2014/15 CSP Annual Report

 

4.1.2     Sub-Programme 1.2: Corporate Services

 

The purpose of the sub-programme is to provide a reliable and efficient corporate service to the Civilian Secretariat that includes the provision of human resource management and development services as well as employee relations, communication & information technology service and auxiliary services. The Corporate Services Sub-programme identified seven performance indicators with their corresponding performance indicators in 2014/15 FY. This has seen the Sub-programme’s indicators decreasing from the seventeen (17) performance indicators identified in the previous financial year (2013/14). During the reporting period, this sub-programme achieved six out of seven planned targets (85.7% achievement rate).

 

 

Table 4: Actual Performance against target for Sub-programme 1.2: Corporate Services

 

Performance indicator		Actual performance against target			Reasons for variance
		Target		Actual
1.	Number of approved Human Resource plans		1	1	Target achieved
2.	Number of approved Human Development Plans		1	1	Target achieved
3.	Percentage of personnel who have signed the Code of Conduct		100%	100%	Target achieved
4.	Number of approved skills work plan		1	1	Target achieved
5.	Number of approved health and wellness programmes		1	3	Target exceeded
6.	Percentage of compliance with statutory reports submitted within set timeframes		100%	100%	Target achieved
7.	Percentage of personnel in terms of approved establishment		94%	93%	Target not achieved: Recent attrition of senior and junior personnel

Source: 2014/15 CSP Annual Report

4.1.3     Sub-Programme 1.3: Financial Administration (Chief Financial Officer)

 

The purpose of the sub-programme is to provide PFMA-compliant financial, accounting and supply chain services to the Civilian Secretariat for Police. The Financial Management Sub-programme identified seven performance indicators with their corresponding performance indicators in 2014/15 FY. This has seen the Sub-programme’s indicators decreasing from the ten (10) performance indicators identified in the previous financial year (2013/14). During the reporting period, this sub-programme achieved all its seven planned targets (100% achievement rate).

 

 

Table 5: Actual Performance against target for Sub-programme 1.3. Financial Administration

 

Performance indicator		Actual performance against target		Reasons for variance
		Target	Actual
1.	Number of Mid-Term Budget Review Reports produced	1	1	Target achieved
2.	Number of Demand Management Plans	1	1	Target achieved
3.	Number of approved procurement plans	1	1	Target achieved
4.	Number of established SCM Committees	3	3	Target achieved
5.	Number of approved registers for fruitless and wasteful unauthorised expenditure	1	1	Target achieved
6.	Number of updated asset registers	1	1	Target achieved
7.	Percentage of creditors paid in 30 days	100%	100%	Target achieved

                                                                                          Source: 2014/15 CSP Annual Report

In the light of the qualified audit outcome and significant findings made by the AG was mainly due to the instability of filling the acting chief financial officer (CFO) position, yet this sub-programme achieved 100% of its predetermined targets, which illustrates a dichotomy between the usefulness of performance targets and the actual delivery of services.

 

4.1.4     Sub-Programme 1.4 Internal Audit

 

The purpose of the sub-programme is to provide internal audit services by conducting compliance and performance audits. The Internal Audit Sub-programme identified five performance indicators with their corresponding performance indicators in 2014/15 FY. During the reporting period, this sub-programme achieved four of its five planned targets.

Table 6: Actual Performance against target for Sub programme 1.4: Internal Audit

Performance indicator			Actual performance against target		Reasons for variance
		Target		Actual
1.	Number of three year rolling plan and operational plans developed	1		1	Target achieved
2.	Number of signed audit reports of planned targets	7		5	Target not achieved
3.	Number of approved risk management policies	1		1	Target achieved
4.	Number of approved risk management strategies	1		1	Target achieved
5.	Number of    global risk assessment reports	1		1	Target  achieved

                                                                                                Source: 2014/15 CSP Annual Report

The CSP reported that the target for the number of signed audit reports of planned targets was not achieved in 2014/15, because management requested that two (2) reports be deferred to the 2015/16 financial year due to urgent and important work that had to be done such as migration of Information Technology systems from the SAPS.

 

4.2 Programme 2: Intersectoral Coordination and Strategic Partnerships

 

The purpose of the Intersectoral Coordination and Strategic Partnerships Programme is to manage and encourage national dialogue on community safety and crime prevention. The Secretariat listed a total of thirteen (13) performance indicators with corresponding measurable targets for this Programme in 2014/15, of which it only achieved 61.5% or eight (8) of the predetermined targets. The success rate of 61.5% recorded in the reporting period shows a remarkable decline from 100% achievement rate recorded during the previous FY (2013/14).

 

 

4.2.1 Sub-programme 2.1: Intergovernmental, Civil Society & Public-Private Partnerships

 

The purpose of the sub-programme is to manage and facilitate civil society partnership in crime prevention. The Intergovernmental, Civil Society & Public-Private Partnerships Sub-programme identified nine performance indicators with their corresponding performance indicators in 2014/15 FY. During the reporting period, this sub-programme achieved six of its nine planned targets.

 

Table 7: Actual Performance against target for Sub-programme 2.1: Intergovernmental, Civil Society & Public-Private Partnerships

 

Performance indicator		Actual performance against target		Reasons for variance
		Target	Actual
1.	Number of working agreements entered into with civil society organizations on crime prevention initiatives	1	1	Target achieved
2.	Number of working agreements entered into with relevant government departments	1	1	Target achieved
3.	Number of working agreements entered into with academic institutions	1	1	Target achieved
4.	Number of established working groups arising from agreements	4	4	Target achieved
5.	Number of Anti-Crime Campaigns	1	1	Target achieved
6.	Number of Community Safety Forums’ assessed	50	50	Target achieved
7.	Number of National Community Safety Forums’ Working Group meetings facilitated	4	2	Target not achieved. Poor coordination from participating departments
8.	Number of assessments conducted on SAPS National Rural Safety Strategy	2	1	Target not achieved. Held summit to address strategy implementation issues
9.	Number of assessments conducted on SAPS sector policing	1	0	Target not achieved. Assessment activities undertaken in the CSP monitoring and evaluation unit

                                                                                                                                 Source: 2014/15 CSP AR

 

4.2.2 Sub Programme 2.2: Community Outreach

 

The purpose of the sub-programme is to promote, encourage and facilitate community participation in safety programmes. The Community Outreach Sub-programme identified four (4) performance indicators with their corresponding performance indicators in 2014/15 FY. During the reporting period, this sub-programme has achieved two (2) of its total planned targets (50%). This represents a decreased performance compared to the 100 per cent achievement rate of this subprogramme in 2013/14.

 

Table 8: Actual Performance against target for Sub-programme 2.2: Community Outreach

 

Performance indicator		Actual performance against target		Reasons for variance
		Target	Actual
1.	Number of public participation programmes	8	6	Target not achieved
2.	Number of assessment reports of social crime prevention programmes implemented	8	8	Target achieved
3.	Total number of provinces implementing community policing forum guidelines	9	9	Target achieved
4.	Number of provinces assessed implementing Community Police Forum training programmes developed by the Secretariat	9	7	Target not achieved. Two provinces not available

                                                                                                                                   Source: 2014/15 CSP AR

 

4.2.3     Budget allocation: Intersectoral Coordination and Strategic Partnerships        Programme

 

The Intersectoral Coordination and Strategic Partnerships Programme received a final appropriation of R23, 735 million in 2014/15 FY compared to R16, 495 million in 2013/14. This was as a result of R4, 242 virement made after the adjustment period. At the end of the 2014/15 FY, the Programme spent 100% of its allocated budget compared to 63.3% in 2013/14 FY.

 

Table 9: Expenditure for Programme 2: Intersectoral Coordination and Strategic Partnerships Programme

 

Intersectoral Coordination and Strategic Partnerships Programme	2014/15	2013/14
Final Appropriation (R’000)	23 735	16 495
Actual Expenditure (R’000)	23 735	10 450
Expenditure as % of total (%)	100%	63.3%
Variance/Over/Under-Expenditure (R’000)	-	R6. 045

                                                                                  Source: 2014/15 CSP Annual Report

 

Current Payments: The account had a final appropriation of R23, 735 million, of which it spent all of it at the end of the 2014/15 FY (100% expenditure). Within this account, expenditure of the following items are worth mentioning:

 

• Compensation of employees: The item received a final appropriation of R13, 626 million in 2014/15 FY compared to R12, 850 million in 2013/14 FY. All the funds allocated for this budget item were spent (100% expenditure)
• Goods and services: The item was allocated R10.109 million as a final appropriation, of which all the allocated funds were spent at the end of the year.
• Payments for capital assets: no allocations were made for this budget item.

 

 

4.3 Programme 3: Legislation and Policy Development

 

The purpose of the programme is to develop policy and legislation for the police sector and conduct research on policing and crime. The Secretariat listed a total of nine (9) performance indicators with corresponding measurable targets for this Programme in 2014/15, of which it only achieved 11.1% or one (1) of the predetermined targets. The success rate of 11.1% recorded in the reporting period shows a remarkable decline when compared to 92.8% recorded during 2013/14 FY. An achievement of only one target is worrying and cannot be justified. Policy and research is one of the main functions of the Secretariat (as per the CSP Act) and crucial in guiding the Executive and Department in terms of policing matters. Therefore, beyond demonstrating poor performance, this success rate speaks to fundamental systematic challenges in this core legislative competency area of the Secretariat.

 

 

4.3.1 Budget expenditure: Legislation and Policy Development Programme

 

In 2014/15, the Legislation and Policy Development Programme received an increased final appropriation of R26. 546 million, which was relatively high when compared to R9. 577 million allocated to the programme in 2013/14 FY. The Programme spent R13, 195 million or 49.7 per cent of its budget at the end of the FY. The under-expenditure recorded is relatively higher when compared to the one recorded (86.3%) in the previous financial year. In monetary terms, the variance for the reporting period was R13. 354 million, which is relatively higher when compared to R1. 307 million variance recorded previously.

 

Table 10: Expenditure for Programme 3: Legislation and Policy Development

 

Programme 3: Legislation and Policy Development	2014/15	2013/14
Final Appropriation (R’000)	26 549	9 577
Actual Expenditure (R’000)	13 195	8 270
Expenditure as % of total (%)	49.7	86.3%
Variance/Over/Under-Expenditure (R’000)	R13. 354 million	R1. 307 million

                                                                               Source: 2014/15 CSP Annual Report

 

It is noted that Sub programme Policy Development and Research received R9.9 million of which R7.2 million was spent (72.7%). A total of R16.58 million was allocated for Sub programme Legislation of which only R5.95 million was spent (35.9%).

In terms of economic classification, the following items are noteworthy:

• Current payments were allocated a final appropriation of R26, 413 million, of which it spent R13, 060 million (49.4 per cent). Of which:

• Compensation of employees: Of its final appropriation of R16, 450 million, R10, 453 million was spent (63.5%).
• Goods and services: Final allocation of R9, 963 million, of which R2, 607 million was spent (26.2 per cent expenditure). Of which:

• Advertising: in this budget item R54 000 was spent far lesser than the projected R253    000.
• Communication: in this budget item R242 000 was spent far lesser than the projected R935 000.
• Minor assets: in this budget item, R21 000 was spent far lesser than the projected R1. 600 million.

• No funds were allocated or expended in the Transfers and Subsidies and Payments for Capital Assets accounts.

 

4.4        Programme 4: Civilian Oversight, Monitoring and Evaluation

 

The purpose of the programme is to oversee, monitor and report on the performance of the SAPS. The structure of the Programme slightly changed in 2014/15 FY compared to the structure of 2013/14 FY. Some of the sub-programmes were grouped together. The Programme achieved eight (8) out of fifteen (15) predetermined targets, of which one (1) target was exceeded. This gives the Programme an overall success rate of 53.3 per cent, which is far below the 94.4 per cent recorded in 2013/14 FY.

 

4.4.1 Sub-Programme 4.1 Police Performance, Conduct and Compliance Monitoring

 

The purpose of the Police Performance, Conduct and Compliance Monitoring Sub-programme is to monitor the performance, conduct and compliance of the SAPS. The key focus of the strategic objective for this Sub-programme changed from improving police performance to improving police accountability, which is welcomed. The Sub-programme achieved six (6) out of ten (10) of its predetermined targets for the 2014/5 FY, with one (1) target exceeded.

 

 

Table 11: Actual Performance against target for Sub-Programme 4.1 Police Performance, Conduct and Compliance Monitoring

 

Performance indicator		Actual performance against target		Reasons for variance
		Target		Actual
1.	Number of oversight visits to police stations		500	585	Target exceeded (AG concern)
2.	Number of police station trend analysis reports		2	1	Target not achieved (second report signed off after end of financial year)
3.	Number of SAPS Budget Programme performance assessment reports		2	1	Target not achieved (second report signed off after end of financial year)
4.	Number of assessment reports on complaints management		1	1	Target achieved
5.	Number of complaints management policies developed		1	1	Target achieved
6.	`Number of assessment reports on critical areas affecting police conduct: litigation management		1	1	Target achieved
7.	Number of reports on SAPS implementation of IPID recommendations		2	2	Target achieved
8.	Number of monitoring reports on the implementation of legislation: Child Justice Act		1	0	Target not achieved (signed off after end of financial year)
9.	Number of audit reports related to the DVA Act finalised for Parliament		2	2	Target Achieved
10.	Number of monitoring reports on implementation of policing policy: Public Order Policing		1	0	Target not achieved. Report signed off after the end of the financial year

 

The Secretariat reported the following as reasons for variance or inability to meet targets:

• Some provinces exceeded their targets on oversight visits to police stations hence the target was exceeded, yet the AG could not verify the validity of the achievement of this target.
• Reports on monitoring the implementation of legislation on Child Justice Act and policing policy (Public Order Policing) were signed off after the end of the financial year-hence the targets were not met
• Second reports on service delivery and budget performance of SAPS signed off after the end of the financial year.
• The CSP reports that two (2) audit reports related to the DVA Act finalised for Parliament in 2014/15, yet the October 2014 – March 2015 has not been table yet.

 

4.4.2     Sub-Programme 4.2: Policy and Programme Evaluation

 

The purpose of the Policy and Programme Evaluation Sub-programme is to evaluate the effectiveness of programmes implemented by the SAPS. The key focus of the strategic objective for this Sub-programme is to improve programme implementation effectiveness. The Sub-programme achieved two (2) out of four (4) of its predetermined targets for the 2014/15 FY).

 

Table 12: Actual Performance against target for Sub-Programme 4.2: Policy and Programme Evaluation

Performance indicator		Actual performance against target		Reasons for variance
		Target	Actual
1.	Number of evaluation reports on policies and programmes implemented: evaluation of legislation passed, the implementation and costing thereof	1	1	Target achieved
2.	Number of reports on the implementation of recommendations: Civilian Secretariat for Police and the Portfolio Committee	1	0	Target not achieved (SAPS implementation plan not received)
3.	Number of reports on special projects	1	0	Target not achieved (report signed off after the end of the financial year)
4.	Number of provincial M&E capacity building sessions delivered	1	1	Target achieved

                                                                                                                       Source: 2014/15 AR

The Secretariat reported the following as reasons for variance or inability to meet targets:

• On the number of reports on the implementation of recommendations by the Secretariat and the Portfolio Committee, the target was not achieved because the SAPS implementation plan was not received.
• On the number of reports on special projects, the target was not met because the report was signed off after the end of the financial year.

 

Budget expenditure: Civilian Oversight, Monitoring and Evaluation

 

In 2014/15, the Programme received a final allocation of R17, 957 million, of which it spent R14, 302 million (or 79.6 per cent) of its budget at the end of the FY. The Programme recorded a variance of R3, 655 million between its actual and projected expenditure, which is a significant improvement compared to the previous FY.  

 

 

Table 13: Budget allocations for the Civilian Oversight, Monitoring and Evaluation Programme

 

Programme 4: Civilian Oversight, Monitoring and Evaluation	2014/15	2013/14
Final Appropriation (R’000)	17 957	18 740
Actual Expenditure (R’000)	14 302	12 159
Expenditure as % of total (%)	79.6%	64.8%
Variance/Over/Under-Expenditure (R’000)	R3. 655 million	R6. 581million

                                                                                                Source: 2014/15 SAPS AR

Key underspending was under the largest sub-programme 1 (Police performance, conduct and compliance) at 73.9%. The other two sub-programmes spent 100% of their budget.

In terms of economic classification, the following should be noted:

• Current payments: The account received a final appropriation of R17, 662 million, of which it spent R14, 302 million at the end of the FY, giving it a variance of R3 655 million between actual and projected expenditure.

• Compensation of employees: the allocation for this budget item was R12, 984 million and spent R10, 530 million or 81.1% at the end of the FY
• Goods and Services: the allocation for this budget item was R4, 678 million and spent R3, 772 million or 80.6% at the end of the FY
• Communication: Spent R236 000 of its R218 000 budget, which is R18 000 less than the projected expenditure (92%).
• Computer services: was allocated R75 000 for the 2014/15 FY but it did not spend its allocated budget
• Travel and subsistence: Spent R1, 805 million of its R2, 029 million budget at the end of the 2014/15 FY (89%). This left R224 000 unspent

 

4.5. HUMAN RESOURCES                                                                                              

 

The Secretariat spent a total of R60, 920 million for 2014/15 FY compared to R42, 929 million on personnel costs during the 2013/14 FY. The highest personnel expenditure was recorded in Programme 1: Administration (84.4% of the total expenditure) a change from the 2013/14 expenditure when Programme 3: Policy and Evaluation recorded highest personnel expenditure (74 per cent of the total expenditure).

 

During the 2014/15 FY R574 000 was spent on training compared to R288 000 spent on training for 73 personnel in 2013/14 FY. It is unclear whether this expenditure refers to outside services procured by the Secretariat and if it does, the Committee should scrutinise this expenditure thoroughly. About R793 000 was spent on professional and specialised services for 2014/15 FY.

 

In 2014/15, the Secretariat had a fixed establishment of 114 posts (compared to 121 posts, in 2013/14), of which 107 were filled at the end of the year. In 2014/15, the Secretariat had a vacancy rate of 6.1%, which is a substantial improvement from 16% in 2013/14 FY The Secretariat had 7 vacant posts at the end of the 2014/15 FY. The Administration Programme had the highest vacancy rate (6.7 per cent), followed by the Civilian Oversight, Monitoring and Evaluation Programme (10 per cent).

 

5.         COMMITTEE OBSERVATIONS

Qualified Audit Opinion

The Committee expressed its disappointment with the fact that the Civilian Secretariat received a qualified audit. There were certain commitments that the Civilian Secretariat made in the last Annual Report hearings which were not fulfilled and the Committee indicated that there has to be steps put in place by the CSP to immediately remedy the situation. While noting that the Acting Secretary was replaced by another Acting Secretary who indicated that the Chief Financial Officer resigned and this caused some of the problems highlighted by the Auditor General. It resulted in misstatements being issued, which could not be corrected. Despite this, the Committee could not accept the fact that the CSP did not make adequate preparations knowing that they were leaving the SAPS cost centre and entering a transition phase.

Oversight departments should lead by example

The Committee indicated that the CSP, being an oversight entity should get its house in order because it should set the example to clean up its act with finances so that it should be able to focus on its core function, civilian oversight.

Effective team management

The Committee questioned whether the Acting Secretary had an effective team and whether he was supported by that team. The Committee noted that the head of Secretariat should make sure that he gets the technical expertise in his team to correct the situation. One of the considerations was the fact that the Head of Strategic Planning was based in Cape Town. The Acting Secretary indicated that the decision was made by the former Acting Secretary on advice from the Public Service Commission on humanitarian grounds. He did however note the comments by the Committee and undertook to investigate the matter and report back to the Committee by the end of the year. The Acting Secretary also indicated that the Civilian Secretariat was in the process of building a team and would report back by the end of November.

Appointment of the Chief Financial Officer

The Committee noted that the Secretariat intended to appoint a Chief Financial Officer within the week 12-16 October 2015 as reported by the Acting Secretary. The Committee welcomed the announcement and noted that it would monitor the space. It suggested that the Civilian Secretariat should prepare to put a plan B in place if the said person does not take up the position. 

Community Police Forums (CPF’s) and Community Safety Forums (CSF’s)

The Committee also wanted to know about the community participation processes in policing, especially the community police forums and the Community Safety Forums. This was particularly important in view of the rise in crime rates and the partnership approaches to policing was becoming urgent. The Committee wanted to know what progress had been made in establishing CSF’s especially since the SAPS did not report on it. The Secretariat indicated that they have established 50 CSF’s around the country and there were about 125 which were previously operational.

Sign Off on developed policies 

The Committee also noted that it appeared that the former Acting-Secretary did not sign off on the policies developed by the Secretariat. This impacted on the delivery of services when people are expecting the Secretariat to deliver on its mandate. The Committee noted that staff members did not make it their business to ensure that agreed to policies have been developed are properly signed off.

Co-operation from Provincial Heads of Departments

The Committee expressed concern that the Secretariat was not receiving the required co-operation from some of the provinces, especially Heads of Departments. The Committee indicated that the if the Secretariat is not receiving the support from the HOD’s Forum it should consider elevating the matter to MinMec so that they receive the necessary co-operation and support when working on policies, campaigns, or evaluation of national projects.

Filling of vacancies

The Committee took note of the fact that the Secretariat is unable to fill vacancies the 2014/15 FY as a result of its budget limitations placed on by the National Treasury. While the rest of the Public Service was having a vacancy rate of 10% on average, the Secretariat had a 6% vacancy rate.

Auditor General Findings on Performance

The Committee was particularly concerned about the Auditor General’s findings on the reliability of performance information in 46% of the cases where the oversight tool was used. The reliability of the results were questioned and the Committee and Members made the point that if the Civilian Secretariat was going to be the driver of processes, then it should have the necessary capability and skills to conduct such oversight visits. The Secretariat responded by indicating that the Secretariat did not have the ability to respond to large datasets and analyse information therein. Measures will be put in pace to assure the quality of the data received from Provinces as they cannot verify what comes from the Provinces is accurate and correct. In future the Secretariat will be working with STATSSA to quality assure the data and develop a consolidated data sheet.

 Legislation

The Committee questioned why the planned legislative programme was not implemented since the Committee prioritised it for the 2015 FY. This impacted negatively on the Committee’s programme. The White Paper on Safety was completed and was waiting for concurrence from the Secretary of Defence and they were hoping that a final presentation would be made to the Cabinet December 2015.

 

 

National Forensic Oversight and Ethics Board

Members questioned whether the National Forensics Oversight and Ethics Board was up and running and how many meetings they have held. The Secretariat reported that the DNA Ethics and Forensics Accountability Board has set up operations and held two meetings. They work from an office in the Civilian Secretariat. All the members of the Board have been appointed except one, and the members of the Secretariat support the administrative work of the Board.

Irregular Expenditure

Members questioned the irregular expenditure and the high transport bill of the Department. The Acting Secretary indicated that R7, 6 million was mostly for travel. This was the result of the Secretariat using one service provider. A preliminary investigation was undertaken to look at possible fraud and it has been established by the internal anti-corruption unit that the tender was awarded in an irregular manner. They have identified matters of fraud and are looking at possible ways of dealing with it.

Consultative Forum

The Committee noted comments from the Acting Secretary that it appears that the Consultative Forum has to be revived because it has only met twice since its inception and this is a concern for the Acting secretary. He noted that he went to see the Acting Executive Director of the IPID since his appointment to get the meetings off the ground again. The Committee noted the comments and indicated that it would monitor the space.

 

6.         SUMMARY OF REPORTING REQUEST

 

REPORTING MATTER	ACTION REQUIRED	TIMEFRAME
Findings of the AG	Action plans to address the findings made by the AG on material misstatements, including action steps, timeframes and targets.	Submitted by 30 November 2015
	Monthly progress reports on actions taken as per the action plan together with financial targets  achieved	First report due on 15 January  2016
	Action plan to address the implementation of  internal financial controls  to substantiate commitments, accruals and employee benefits	Submitted by 30 November 2015.
	Action plan to timeously and adequately review financial statements and compare them to documentation	Submitted by 30 November 2015.
	Action plan to appoint skilled staff in critical posts	Submitted by 30 November 2015
	Improve levels of assurance by the accounting officer of the CSP, especially at the Internal audit function.	Submitted by 30 October 2015.
Underspending	Quarterly expenditure reports	One (1) month after the end of each financial quarter
	Action plan to address variances in quarterly expenditure and bring it in line with linear benchmark set by Treasury.	Submitted by 20 November 2015
Vacancies	The CFO should be appointed with immediate effect. Treasury should be engaged to provide funding for the outstanding vacancies	Submitted by 30 October 2015.
Management team	Develop an action plan on the skills and training of the senior management team and provide the Committee with a report.	Submitted by 30 November 2015.
Performance rewards	A breakdown of the recipients of performance bonuses for 2012/13 and 2014/15, together with the amounts, salary bands and post of individual recipients.	The list for 2013/14 must be submitted by 30 October 2015. The list for 2014/15 should be submitted upon completion of the Review Committee process.
Legislation	Provide a new programme for the tabling of legislation in the new year	Submitted by 30 October 2015.
7) DNA Forensics Ethics and Accountability Board	Provide a progress report on the functioning of the DNA Forensics Ethics and Accountability Board	Submitted by 30 October 2015.
CSF/CPFs	To provide a report and breakdown of 50 established CSF’s in the country and their activities	Submitted by 30 January 2016.
Consultative  Forum	The Acting Secretary to initiate Consultative Forum Meetings and provide report to the Committee.	Submitted by 30 January 2016.

 

7.         COMMITTEE RECOMMENDATIONS:

 

7.1        The Committee recommends that the Secretariat immediately implements all the recommendations from the Auditor General and provide the Committee with Monthly            progress reports.

 

7.2        The Committee recommends that the Secretariat puts action steps in place to make         sure that the Department do not receive another qualified audit opinion and report on             those measures.

 

7.3        The Committee recommends that the CFO is appointed with immediate effect and that     a plan B is developed in the event the appointment is not taken up.

 

7.4        The Committee recommends that the Secretary begins to shape his management            team with capable, skilled and experienced individuals who will assist in taking the department forward. A full report should reach the Committee by the end of November          2015. 

 

7.5        The Committee recommends that the Acting Secretary signs off on all completed, but     unsigned policies which is required on policies and legislation. A full report is to be             made available to the Committee within a month.

 

7.6        The Committee recommends the Acting Secretary leads the initiative to re-establish         the Consultative Forum with the IPID and a report is to be made available to the        Committee within one month.

 

7.7        The Committee recommends that the Secretariat elevate all instances of non-      cooperation from Heads of Provincial Departments to the MinMec meeting so that    proactive steps should be taken.

 

7.8        The Committee recommends that the Secretariat provides it with an updated list of          legislation to be tabled for the first term in 2016.  

 

7.9        The Committee recommends that the Secretariat develops a plan to fill all outstanding     vacancies in view of the decision of National Treasury to not allocate resources to the      Secretariat in this financial year. A report is to be forwarded to the Committee in this             regard. 

 

7.10      The Committee recommends that Secretariat acts on irregular expenditure and     allegations of fraud in the travel tender. The Committee supports the decision by the       Secretariat to proceed with further steps.

 

7.11      The Committee recommends that the Secretariat develops a policy on demilitarisation     before the end of December 2015 and make it available to the Committee.

 

7.12      The Committee recommends that a report on the functioning of the DNA Ethics and        Forensics Accountability Board is made available within one month.

 

7.13      The Committee recommends that the Secretariat provide a report of all the 50      established CSF’s across the country and how they are impacting the fight against      crime within one month.

 

8.         CONCLUSION

The Civilian Secretariat is expected to play a pivotal role in developing policies that will assist the SAPS in becoming more professional and responsive to the public. During the last two years, the Civilian Secretariat has been struggling with leadership issues and it has already started to affect its performance. The Committee is of the opinion that only a strengthened, well organised Civilian Secretariat with strong partnerships can assist with enhancing its oversight role over the SAPS and IPID. As the standard bearer for civilian oversight, the Secretariat should lead from the front and clean up its act with respect to its managing its budget and internal controls. An effective and professional Civilian Secretariat is a vital tool to ensure an accountable and professional Police Service.