QUARTERLY FINANCIAL AND
ADMINISTRATIVE REPORT
Portfolio Committee Presentation
26 August 2009
1
CONTENTS
A.
IN YEAR MONITORING REPORT
QUARTER AS AT 30 JUNE 2009
B.
BELT-TIGHTENING MEASURES
C.
ADMINISTRATIVE
REPORT
–
1st
DELIVERY ON OPERATIONAL PLANS
D.
OUTSOURCING
E.
CONCLUSION
FOR
FIRST
QUARTER
2
A. IN YEAR MONITORING REPORT FOR FIRST
QUARTER AS AT 30 JUNE 2009
3
NATIONAL STATE OF EXPENDITURE FOR YEAR TO DATE: 30 JUNE
2009
R'000
Budget allocation
13,238,568
Less: Expenditure
2,892,413
Total amount available
10,346,155
Percentage spent
21.85%
Percentage of spending plan
22.62%
4
COMMENTS ON NATIONAL STATE OF EXPENDITURE FOR
YEAR TO DATE PER PROGRAMME: 30 JUNE 2009
•
Final overall expenditure of Department as at 30 June 2009 was at 21.85% against
spending plan of 22.62% (under-spending)
•
Actual spending of 23.17% against spending plan of 24.31% (under-spending) under
Programme Administration is mainly due to low spending of funds allocated for MISP
projects (RDOMS & EDRMS)
•
Actual spending of 23.83% against spending plan of 22.94% (over-spending) under
Programme Security is mainly due to payments of overtime made to correctional officials
in line with continuous implementation of PSCBC Resolution number 1 of 2007.
implementation of 7-Day Establishment with effect from 1 July 2009 will result in
reduction of overtime expenditure which used to be paid in line with 5-Day Work Week
Establishment
5
COMMENTS ON NATIONAL STATE OF EXPENDITURE FOR
YEAR TO DATE PER PROGRAMME: 30 JUNE 2009
•
Actual spending of 22.78% against spending plan of 24.02% (under-spending) under
Programme Corrections is mainly due to low spending of funds allocated for purchases of
Machinery & equipment due to ITC approval problems & delay in bidding process
•
Actual spending of 19.81% against spending plan of 23.68% (under-spending) under
Programme Care is broadly due to relevant outstanding internal charges transactions to be
cleared to this Programme in line with request for items & consumption thereof
•
Actual spending of 18.96% against spending plan of 23.20% (under-spending) under
Programme Development is mainly due to low spending of funds allocated for purchases
of Machinery & equipment due to ITC approval problems & delay in bidding process
6
COMMENTS ON NATIONAL STATE OF EXPENDITURE FOR
YEAR TO DATE PER PROGRAMME: 30 JUNE 2009
•
Actual spending of 23.70% against spending plan of 21.79% (over-spending) under
Programme Social Reintegration is mainly due to payments of overtime made to
correctional officials in line with continuous implementation of PSCBC Resolution number 1
of 2007. implementation of 7-Day Establishment with effect from 1 July 2009 will result in
reduction of overtime expenditure which used to be paid in line with 5-Day Work Week
Establishment
•
Actual spending of 15.77% against spending plan of 16.65% (under-spending) under
Programme Facilities is mainly due to low spending of funds allocated for capital works
projects due to low & late billing from Department of Public Works for capital works projects
completed
7
COMMENTS ON NATIONAL STATE OF EXPENDITURE FOR YEAR
TO DATE PER GFS CLASSIFICATION: 30 JUNE 2009
•
Actual spending of 23.58% against spending plan of 23.54% (over-spending) on
Compensation of Employees is mainly due to payments of overtime made to correctional
officials in line with continuous implementation of PSCBC Resolution number 1 of 2007.
implementation of 7-Day Establishment with effect from 1 July 2009 will result in reduction
of overtime expenditure which used to be paid in line with 5-Day Work Week Establishment
•
Actual spending of 21.34% against spending plan of 23.39% (under-spending) on Goods &
Services is mainly due to low spending of funds allocated for MISP projects
•
Actual spending of 22.89% against spending plan of 22.13% (over-spending) on Transfers
& Subsidies is mainly due to payments made for leave & inmates gratuities under item
households
•
Actual spending of 12.14% against spending plan of 14.57% (under-spending) on
Payments for Capital Assets is mainly due to low spending of funds allocated for capital
works projects due to low billing from Department of Public Works for capital works
projects completed
8
CHALLENGES ON BUDGET ALLOCATION FOR 2009/10 FINANCIAL
YEAR
•
GPSSBC Resolution number 2 of 2009 was signed on 24 June 2009 which makes
provision for implementation of OSD for correctional officials
•
Phase one of OSD consists of implementation of once off back payments to compensate
officials for delay on OSD implementation effective from 1 July 2008 to 30 June 2009 (12
months) & introduction of salary increase adjustment for non-centre & centre based
officials
•
Phase two of OSD consists of implementation of remuneration to be paid to correctional
officials based on recognition of their experience with effect from 01 April 2010
•
Having noted OSD obligations against insufficient budget allocation, Department is
nonetheless obliged to carry on with implementation of OSD in terms of signed GPSSBC
Resolution number 2 of 2009
9
STATE OF EXPENDITURE PER PROGRAMME FOR
YEAR TO DATE: 30 JUNE 2009
Programme
Administration
Security
Corrections
Care
Development
Social reintergration
Facilities
Total
Budget R'000 Exp to date R'000 % Spent Budget avail R'000
3,478,050
806,022 23.17%
2,672,028
4,425,262
1,054,681 23.83%
3,370,581
1,112,080
253,301 22.78%
858,779
1,591,750
315,251 19.81%
1,276,499
448,683
85,078 18.96%
363,605
425,911
100,954 23.70%
324,957
1,756,832
277,126 15.77%
1,479,706
13,238,568
2,892,413 21.85%
10,346,155
10
STATE OF EXPENDITURE PER PROGRAMME FOR
YEAR TO DATE: 30 JUNE 2009
14,000,000
12,000,000
Budget R'000
10,000,000
Exp to date R'000
8,000,000
6,000,000
4,000,000
2,000,000
0
Administration
Security
Corrections
Care
Development
Social
reintergration
Facilities
Total
11
STATE OF EXPENDITURE PER GFS CLASSIFICATION
FOR YEAR TO DATE: 30 JUNE 2009
GFS Classification
Compensation of Employees
Goods & Services
Thefts and losses
Interst & Rent on land
Transfers & Subsidies
Payment of Capital Assets
Total
Budget R'000
8,292,350
3,608,831
0
57
37,844
1,299,486
13,238,568
Exp to date
% Spent Budg avail R'000
R'000
1,955,243 23.58%
6,337,107
769,969 21.34%
2,838,862
720
0.00%
-720
0
0.00%
57
8,662 22.89%
29,182
157,819 12.14%
1,141,667
2,892,413 21.85%
10,346,155
12
STATE OF EXPENDITURE PER GFS CLASSIFICATION
FOR YEAR TO DATE: 30 JUNE 2009
Budget R'000
14,000,000
Exp to date R'000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
Compensation of
Employees
Goods &
Services
Interst & Rent on
land
Transfers &
Subsidies
Payment of
Capital Assets
Total
13
NATIONAL PROJECTED EXPENDITURE PER PROGRAMME
FOR YEAR: 2009/10 FINANCIAL YEAR
Programme
Administration
Security
Corrections
Care
Development
Social reintergration
Facilities
Total
Exp to date
Budget R'000
June 09:
R'000
3,478,050
4,425,262
1,112,080
1,591,750
448,683
425,911
1,756,832
13,238,568
806,022
1,054,681
253,301
315,251
85,078
100,954
277,126
2,892,413
Proj. exp
Projected
July 09 to
expenditure Shortfall R'000
March 10
%
R'000
2,672,028
100.00%
0
3,370,581
100.00%
0
858,779
100.00%
0
1,276,499
100.00%
0
363,605
100.00%
0
324,957
100.00%
0
1,479,706
100.00%
0
10,346,155
100.00%
0
14
NATIONAL EXPENDITURE PER GFS CLASSIFICATION
PROJECTED FOR YEAR: 2009/10 FINANCIAL YEAR
GFS Classification
Compensation of Employees
Goods & Services
Interst & Rent on land
Transfers & Subsidies
Payment for Capital Assets
Total
Budget R'000
8,292,350
3,608,831
57
37,844
1,299,486
13,238,568
Exp to date
June 09:
R'000
1,955,243
769,969
0
8,662
157,819
2,892,413
Proj. exp
Projected
July 09 to
expenditure Shortfall R'000
March 10
%
R'000
6,337,107
100.00%
0
2,838,862
100.00%
0
57
100.00%
0
29,182
100.00%
0
1,141,667
100.00%
0
10,346,155
100.00%
0
15
B. BELT-TIGHTENING MEASURES
16
BELT-TIGHTENING MEASURES
The following belt-tightening measures were introduced & are being implemented to contain
costs:
•
Limitation & stricter control over traveling, subsistence & related accommodation
expenditure.
•
Limitation & stricter control over appointment of consultants in Department.
•
Limitation & stricter control over purchases of furniture & vehicles.
•
Discontinuation of purchases of uniform for administrative staff members.
•
Limitation of colour & quantity printing of documents.
•
Tightening control over utilisation of telephone landlines.
•
Imposed stricter control over management of stores items.
17
C.
ADMINISTRATIVE REPORT ON OPERATIONAL
PLAN DELIVERY
18
PERFORMANCE ACHIEVEMENTS
• Administration: Regulatory and Monitoring
Strategy
– Public private partnership entities monitored
through monthly visits
– Manuals to implement new LOGIS system are
available to assist operational levels
– Draft contract management policy procedures
are available
– 133 Officials trained on BAS & 320 on LOGIS
– Debt management is on track
– Progress was made with payment of invoices
within 30 days
19
PERFORMANCE ACHIEVEMENTS
• Administration: Regulatory and Monitoring Strategy cont…
– Gender forum has been established, gender
empowerment training is ongoing & 100 female
personnel have been identified for accelerated
development
– Strike management committees are functioning
– HR planning learning forum established
– Baseline of leave days lost established to enable
management information for decision making
– 507 control room posts were filled as well as 179
closed/specialised & management positions
– Vacancy rate for scarce skills at 38% is well under
targeted 45% & head hunting strategy is successful in
some instances
– National & regional strategic HR Plans are available 20
PERFORMANCE ACHIEVEMENTS
• Administration: Regulatory and Monitoring Strategy
cont…
– Baseline for processing service termination
documents established, challenges have been
identified & mitigation strategies are being processed
– OSD signed off for correctional officials & social
workers & once off payment of R7500 effected
– Progress is being made to improve HR data integrity
– 70% of fire fighters & first aides have been appointed
in implementing safety & health programmes
– Department provides opportunity for experience for
100 interns & 50 students
– Training in HR-related areas of 2623 Officials - 426 of
them in middle & junior management & 17 in SMS
leadership
21
PERFORMANCE ACHIEVEMENTS
Administration: Regulatory and Monitoring Strategy cont…
– 626 bursaries were awarded
– Payments on judgements made to value of R 68000
– Legal services procedures approved
– Prominent legal issues have been identified & 7 awareness
workshops conducted
– Fraud prevention plan which was approved towards end of
March 2009 has been disseminated
– Draft policy implementation framework is available
– Draft protocol for cluster information sharing is available
– Audit of research capacity in cluster was conducted with NPA
– Data on fingerprints of offenders in re-offending study has been
cleaned & corrected
22
PERFORMANCE ACHIEVEMENTS
• Administration: Regulatory and Monitoring Strategy cont…
– Research projects on evaluation of parole boards &
organisational culture are on track
– Draft business continuity plan is available
– Draft Open Source Software strategy is available
– Tripartite contract has been signed with regard to phase 1 of
Remand Detention and Offender Management System
(RDOMS) project
– Video remand project in 7 facilities has made very good progress
with live testing of system to connect to courts completed
– Pilot of Electronic Document & Record Management System
(EDRMS) project being implemented at Operations &
Management Support (OMS) Branch in Head Office & Witbank &
Middleburg Management Areas
– National Contact Centre is operational
– Development of Monitoring, Evaluation and Reporting (MER)
system at 39% completion
– Compliance improvement inspections conducted in Eastern
Cape, Gauteng and KZN
23
PERFORMANCE ACHIEVEMENTS
• Administration: Operations Strategy
– Monitoring visits undertaken and compliance found to
be generally high
– Asset acquisition plans and procurement plans are
available
– Personnel trained on various aspects of financial
management
– Data base created for losses and debts has
commenced to allow for better measurement of
impact on Department
– Considerable percentage of bids awarded to
historically disadvantaged individuals and small
businesses as priority groups such as females and
disabled persons
– Good progress with regard to payment of invoices
within 30 days
24
PERFORMANCE ACHIEVEMENTS
• Administration: Operations Strategy cont…
– Vacancy rate remains higher than set target
– Scarce skills rate remain lower than target for nurses and social
workers but still higher than set target for psychologists and
pharmacists. Head hunting strategy has led to filling of some
posts
– PERSAL data integrity is improving and is over 70%
– Service terminations are receiving attention and some regions
are making progress in timeous attention to these matters
– Exit interviews are being conducted
– Moderation of performance assessment was generally
successful
– Various HR-related training programmes have been conducted
– Health and wellness programmes are being implemented
– Increasing participation noted in various sporting codes
25
PERFORMANCE ACHIEVEMENTS
• Administration: Operations Strategy cont…
– Performance information on legal matters focus on
impact on DCS financially as well as in terms of loss
of skills and mitigation actions
– Disciplinary hearings finalised timeously and
imposition of sanctions being tracked
– Participation in cluster structures improving
– Compliance inspections undertaken and generally
compliance has improved
26
PERFORMANCE ACHIEVEMENTS
• Security: Regulatory and Monitoring Strategy
– Progress made in revision of security inspections
manual
– There have been 8 escapes, this is 0,5 of 10 000
inmates - surpassed target of 1,1 per 10 000.
– Draft anti gang strategy framework is available
– Security technology audit has been completed &
report is available
27
PERFORMANCE ACHIEVEMENTS
• Security: Operations Strategy
– Investigations of all security incidents are in process and
prioritised
– FS / NC had 3 escapes, LMN 2, KZN 1, Gauteng 1, EC 0, WC 1
with 8 in total
– Assaults remain fairly high although some regions recorded a
decrease in comparison to last year
– There were nine unnatural deaths with 2 of them being suicides
– Plans to deal with security incidents are implemented and
training is a priority while spot checks are being conducted
regularly
– Regions have audited availability of policies and rectified
shortcomings in this respect
28
PERFORMANCE ACHIEVEMENTS
• Corrections: Regulatory and Monitoring Strategy
– Implementation of assessment tools & correctional
sentence plans was monitored in 3 regions
– Female offender profile & trend analysis for female
correctional centres is available
– Research on sexual offenders is completed
– Draft reclassification tool for parolees & probationers
is available
– Unit management (including structured day & 3 meal
system) fully implemented at 86 out of 138 centres,
i.e. 67%
– 99 Officials trained on implementation of case
management tools
– 4 chapters of discussion document on legislative
29
framework for remand detention is completed
PERFORMANCE ACHIEVEMENTS
• Corrections: Operations Strategy
– Backlog in assessment of offenders and compilation
of sentence plans reduced
– Offenders increasingly participating in correctional
programmes
– Increasing implementation of unit management in
centres
– 6720 new admissions have correctional sentence
plans
– Overcrowding reduced from 143,33% in April 09 to
142,05% in June 09
– A baseline determined for offenders not appearing for
court hearings and mitigation actions taken
30
PERFORMANCE ACHIEVEMENTS
• Social reintegration: Regulatory and Monitoring
Strategy
– Draft learner guide on supervision categories &
sanctions for probationers is available
– Compliance monitoring tool for Correctional Services
Parole Boards is approved
– Admission & release information now available on
offenders who have completed minimum detention
periods & offenders whose placements have been
approved
31
PERFORMANCE ACHIEVEMENTS
• Social reintegration: Operations Strategy
– 9565 violations of parole conditions recorded
– Reduction in cases where Case Management
Committees recommendations differ from Parole
Board decisions
– Backlog of cases not attended to for parole purposes
have been identified and mitigation actions in place
32
PERFORMANCE ACHIEVEMENTS
• Facilities: Regulatory and Monitoring Strategy
– Department of Public Works processes finalised
towards service level agreement between DPW &
DCS
– Draft procedures & minimum facilities requirements
available
– Expiring leases have been renewed
– New leases have been procured
– 10 Parole board offices available for occupation in
LMN (1), Gauteng (5), FS / NC (1), WC (1) & EC (2)
33
PERFORMANCE ACHIEVEMENTS
• Facilities: Operations Strategy
– An audit of 50% of immovable assets has been
conducted
– Environmental impact increasingly considered with
installation of solar heating systems in some centres
34
PERFORMANCE ACHIEVEMENTS
• Development: Regulatory and Monitoring Strategy
– Draft skills development cost & price tariff structure
available
– MIS for skills development is being implemented
– Partnership established with Department of Social
Development to establish youth care centres,
Department of Arts & Culture on Arts Access
Programme & National Arts Festival & Department
of Education to train master trainers in DCS on
ABET level 2 curriculum
– Pretoria & Johannesburg Female Correctional
Centres identified to establish Early Childhood
Development (ECD) centres
35
PERFORMANCE ACHIEVEMENTS
• Development: Operations Strategy
– 10574 Offenders in literacy programmes
– 14317 Offenders in skills development programmes
– 10000 Offenders in mainstream education
– 130000 Offenders participate in Sport, Recreation,
Arts & Culture (SRAC) programmes
– Increasing development of partnerships to provide
development programmes
– Meat, fruit, chicken, etc are being produced according
to farm plans
– Klerksdorp Correctional Centre has computer based
training centre in partnership with Vuselele FET
College
– 2951 offenders participate in agricultural activities &
1438 in production workshops
36
PERFORMANCE ACHIEVEMENTS
• Care: Regulatory and Monitoring Strategy
– Several policies & procedures have been reviewed or
are being developed, e.g. Food & Services training
manual, Guidelines for Paganists, ATR & Muslims,
Policy Procedures for Elderly Offenders, guidelines
for HIV & AIDS programmes & Correctional Centre
Based Care Policy & Procedures
– Shembe Guidelines approved & Child Offender Policy
Procedures approved
– Primary health care package & government priority
programmes have been identified for implementation
– Psychologists from 3 regions workshopped on drug &
substance abuse with SANCA Horizon
– Survey of sexual abuse amongst offenders is being
conducted
– Job descriptions for counsellors determined to
enhance psychological service delivery
37
PERFORMANCE ACHIEVEMENTS
• Care Regulatory and Monitoring Strategy
cont…
– Substance abuse & anger management programmes
have been reviewed & approved for implementation
– Pilot of new youth programme is currently being
implemented
38
PERFORMANCE ACHIEVEMENTS
Care Operations Strategy
– Primary health care rendered in most centres
– 47000 Spiritual care sessions were conducted
– 28000 Social work interviews, 5000 offenders
assessed & 5000 offenders participated in group
sessions
– 1890 Offenders have received psychological services
– 18000 Offenders participated in HIV & AIDS
programmes
– 1600 Offenders are participating in programmes
provided by external service providers.
– Various partnerships established
39
PERFORMANCE CONSTRAINTS
• Administration
– Some planned training did not take place due to
budgetary constraints
– Development of asset verification programme still in
process
– Asset reconciliation behind due to new system
implementation by Treasury
– Policies not yet approved
– Moratorium on filling of posts hampers functioning &
leads to 11,3% vacancy rate currently
– Department in competition with other entities for
scarce skills such as psychologists, nurses, etc.
– Exit management programme not fully implemented
40
PERFORMANCE CONSTRAINTS
• Development
– MIS not fully operational due to infrastructure issues and data
cannot be obtained in real time due to system difficulties
– Slow organisational process such as approval of policies &
procedures
– Human resource constraints
– Quality assurance committees non-functional
• Care
– Policies & procedures not yet completely approved
– Human resource constraints
– Compliance with legislation & policies to ensure good
governance also delays processes such as appointment of
service providers
– Lack of expertise in design & development of programmes
internally
41
PERFORMANCE CONSTRAINTS
• Corrections
– Corrections Policy not yet approved
– Shortage of human resources
– MIS information delay with regard to security
– Non-approval of organisational structure
– Budgetary constraints
– Slow delivery of reports from Regions
42
D.
OUTSOURCING
43
WHAT IS OUTSOURCING?
Outsourcing refers to the practice of turning-over
internal Departmental functions/services to an outside
service provider
44
WHY DO WE OUTSOURCE
?
•
To source expertise and skills that are not available within
the Department
•
The high turn-over and the inability to retain and match
what the private sector is offering in terms of salary
•
Prolonged process of staffing
•
To allow the Department to refocus on its core mandate
•
Improve service delivery of the Department on the core
mandate
Cont …
45
WHY DO WE OUTSOURCE
?
•
Enhance better compliance to statutory requirements
linked to the core mandate of the Department, e.g.
Correctional Services Act, Act 111 of 1998
•
Give effect to other statutory requirements such as PFMA,
PPPFA, Health and Safety Act, etc.
•
Cost benefits for the Department
•
Enhance effectiveness, efficiency and economical
46
METHODS OF OUTSOURCING IN PUBLIC SERVICE
• Public Private Partnership informed by PFMA and
Treasury Regulations, Chapter 16
• Convectional Procurement through the use of
Treasury Regulations, Chapter 16A (Supply Chain
Management)
47
LEGISLATIVE FRAMEWORK THAT INFORMS
METHOD OF SOURCING
Both these methods involve the application of
the following Acts:
• South African Constitution (Act 108 of 1996)
• Public Finance Management Act (Act 29 of
1999) and its Regulations in Chapter 16 (PPP)
and 16A (SCM)
Cont …
48
LEGISLATIVE FRAMEWORK THAT INFORMS
OUTSOURCING
• Broad Base Black Economic Empowerment Act
(Act 53 of 2003)
• Preferential Procurement Policy Framework Act
(Act 5 of 2000) and its Regulations, 2001
49
LEGISLATIVE FRAMEWORK THAT INFORMS
OUTSOURCING
• Correctional Services Act (Act 111 of 1998)
• White Paper on Corrections
• Departmental Policies and Procedures
50
SERVICES OUTSOURCED
5.1 PPP Prisons
•
Two prisons are outsourced by this method, namely
Kutana Sinthumale in Makado and Mangaung in
Bloemfontein
•
These Centres are outsourced on the following:
- Design of the centres
- Building of the centres
- Financing of the centres
- Operating of the centres for a maximum period of
25 years
Cont…
51
SERVICES OUTSOURCED
•
Currently four (4) bids are running on PPP for the design,
build, operate, finance, maintenance of the following
Centres :
-East London
-Paarl
-Klerksdorp
-Nigel
•
The Minister has suspended the processing of the PPP
until further studies and recommendations on best options
especially on how to manage the operations should these
services be outsourced
52
SERVICES OUTSOURCED
5.2 Rendering of catering and training services at various
Management Areas. 36 Months. R839 393 000-00
•
•
•
•
DCS does not have the facilities or the infrastructure to continue
with meal preparation while closing down the current kitchens for
upgrading
DCS does not have access to suitable training programmes that are
accredited by the authoritative bodies
DCS is experiencing staff shortages to meet critical needs
DCS does not have a controlled computerised meal planning
system
53
SERVICES OUTSOURCED
5.3 Service Provider to assist Internal Audit of the Department of
Correctional Services with all internal audit related tasks as a
co-sourced partner. 30 Months. ±R20 000 000-00
•
The Service Provider is regarded as an extension of the Internal
Audit Unit to conduct certain audits as approved by the Audit
Committee on the Annual Work plan
54
SERVICES OUTSOURCED
5.4 Training of Junior and Middle Managers on Management
Development Program. R4 950 000-00
•
DCS did not have the internal capacity to develop accredited training
programmes for Junior and Middle management
•
Public Administration Leadership and Management Academy
(PALAMA) training centre was approached but did not have a
programme that is suitable for DCS needs
•
DCS had no option but go out on tender and ensure that all the
needs are contained in the tender specifications
55
SERVICES OUTSOURCED
5.5 Development and training of Executive and Senior Managers on
Leadership Development Program. R4 632 500-00
•
•
As a result of past transformation processes and the new paradigm
which is fully detailed in the White Paper towards which all
operations have to be steered
It has emerged that a need assessment process is critical to inform a
customized DCS programme that would target specific leadership
development skills
56
OTHER SERVICES SOURCED
The following services are generally sourced outside government
departments because they are not the core business. DCS has
outsourced the following services:
Service
Value
Service Provider to conduct a survey on the
organizational culture within DCS
R2 429 650-00
Service Provider to conduct a comprehensive
feasibility study for the outsourcing of food
provisioning services to inmates within DCS
R1 148 162-40
Standard cleaning services to DCS Head Office for
a two-year period
R2 496 216-24
Appointment of an independent SANAS Accredited
Service Provider to assist DCS with the inspection
and testing of textiles, clothing, footwear, etc.
R8 050 000-00
57
OTHER SERVICES SOURCED
Service
Value
Maintenance of control room after warranty
R148 202 584-00
Supply, delivery, installation and
commissioning of security outer perimeter
fences and CCTV surveillance cameras
R436 185 110-35
Maintenance of above for a period of 48
months
R50 752 800-00
58
OTHER SERVICES SOURCED
Service
Value
Supply, delivery, installation and commissioning
of television system and monitors at all
Correctional Centres
R159 000 000-00
Maintenance of above after warranty for a period
of twelve (12) months
R65 364 480-00
Transaction Advisor Services for Public Private
Partnership
R20 000 000-00
59
ECONOMIC IMPACT OF SOURCED SERVICES /ITEMS
Financial Year
2008/09
Total value of contracts
R1 148 million
(886 contracts)
Value of contracts awarded to black enterprises with
more than 50.1% black ownership (including black
women)
R1 112 million
(743 contracts)
% of Contracts awarded to HDIs
83.86%
% of Rand Value awarded to HDIs
96.86%
60
BENEFITS OF OUTSOURCING
•
Capacity building during the running of the contract
•
Focus more on the core business of the Department
•
Risk transfer
•
Enhancement of the quality of service delivery
•
Value-for-money
•
Penalty clause can be effected on non-performance and poor
services
61
IMPROVEMENT IN PROCUREMENT SYSTEM
• Effective from March 2004, Supply Chain Management
was implemented within the Department
• Structures were put into place to ensure that procurement
is operated in the manner which is fair, equitable,
transparent, competitive and cost effective in compliance
with the Constitution, Section 217, PFMA (section 38(iii))
and PPPFA
62
IMPROVEMENT IN PROCUREMENT SYSTEM
• Structures are as follows :
-
National Bid Adjudication Committee
Stationed at Head Office
Handles bids exceeding R5 million to infinity
Members are as follows :
*
All Executive Managers at Head Office
Chairpersonship rotate amongst the CDCs
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IMPROVEMENT PROCUREMENT SYSTEM
• Structures (Continue)
-
Sub-Bid Adjudication Committee :
Stationed at Head Office and 6 Regional Offices
Handles bids exceeding R200 000 to a limit of R5
million
Head Office
*
Managed by Senior Management at Supply
Chain Management
Regional Offices
*
Regional Heads Finance and Supply Chain
Management officials
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IMPROVEMENT IN PROCUREMENT SYSTEM
• All the members of the National and Sub-Bid Adjudication
Committees are appointed in writing by the Accounting
Officer
• All Bid Adjudication members have signed the Code of
Conduct
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IMPROVEMENT IN PROCUREMENT SYSTEM
• Duties of Bid Adjudication Committees :
-
Give final award based on the recommendation of
Bid Evaluation Committees
-
All necessary bid documents are submitted
-
Ensure that disqualification of service providers
are justifiable and that valid and accountable
reasons are furnished for passing over of bids
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IMPROVEMENT IN PROCUREMENT SYSTEM
• Duties (continue) :
-
Ensure that scoring is fair, consistent and
correctly calculated
-
Ensure that bidder’s Declaration of Interest has
been taken into consideration
-
Ensure that members themselves declare their
interest in writing before commencing with the
adjudication of bids
-
These committees can extend the period of the
existing contract and can also extend the scope of
work according to the delegated powers
67
IMPROVEMENT IN PROCUREMENT SYSTEM
•
Structures (Continue) :
-
Bid Evaluation Committee
Evaluate and recommends bids/proposals to relevant Bid
Adjudication Committee
Members are appointed in writing by the Accounting Officer
Members differ from case to case based on the nature of the
bid and the competency of the members in line with the bid to be
evaluated
This is an ad hoc committee
Members must declare their interest in writing and sign Code
of Conduct prior to the commencement of evaluation
68
WHERE CAN WE IMPROVE
• Conducting of stakeholder analysis
• Comprehensive feasibility must be conducted before
outsourcing any services
• Promote the advantages of a proper procurement plan
linked to strategic plan, operational plan, MTEF and
budget
• Maintain the gains and achievements
• Improve contract management especially by end-users
• Retain and deploy skills accordingly
• Build capacity of project officers on project management
69
E.
CONCLUSION
70
CONCLUSION
•
•
•
Department experienced achievements in addressing activities
relating to its Annual Performance Plan during first quarter of
financial year despite being faced with significant challenges
Some of these challenges are as follows:
–
Overspending VS belt tightening processes: Inmate Ratio &
Animal Feed
–
Implementation of Occupation Specific Dispensation (OSD) for
Correctional Officials & 7-day Establishment
–
State of DCS facilities
–
Assaults & gang Activity & Unnatural Deaths
–
Lack of human resources
Department is continually striving to address these challenges in
pursuit of improving service delivery
71
Together doing more & better to break cycle of
crime
72