IPID Expenditure and Performance Report Q3-Q4 2016/2017

PCP PRESENTATION 3rd and 4th QUARTER (Oct – Dec 2016 Jan - March 2017) Independent Police Investigative Directorate (IPID) Date: 20th June 2017 Venue: Parliament Time: 09H00-13H00

INDEX IPID Strategic Plan 2015/20 and Annual Performance Plan 2015/16 • Introduction • Overview of Overall Expenditure • Overview of Quarterly Expenditure • Expenditure for Third Quarter • Expenditure for Fourth Quarter • Forward looking implications of expenditure • Summary of Q3 and Q4 performance • Performance per Programme • Conclusion

INTRODUCTION • The IPID consolidated performance, particularly in the third and fourth quarter, was greatly affected by budgetary constraints facing the department due to the following reasons, among other things: • Budget cuts and ceilings placed by National Treasury on compensation of employees. • Some of the activities in Investigations and Stakeholder Management were deferred to the next financial year. As a result, four (4) case classifications were prioritised for investigation; which are death in police custody, death as a result of police action, rape by police officer, rape while in custody and systemic Corruption. • Management took drastic decisions to reprioritise departmental activities and the expenditure to remain within the allocated budget. • Reallocation of funds has also been done from non-core to core activities of the Directorate in order to achieve more with less resources.

INTRODUCTION (CONTINUED) • Some of activities affected: • Filling of vacancies • Training • Internal Audit Annual Plan • Procurement of SPSS Software (statistical analysis) • Investigations • Legal opinions provided to the Directorate • Station lectures • Community outreach events • Stakeholder engagements • As a result of curtailing the above activities, to avoid over expenditure, the performance of certain strategic objectives was negatively impacted

OVERVIEW OF EXPENDITURE Ipid Overall Expenditure – 2016/17 • As at the end of the fourth quarter, the IPID spent 99.84% of its budget. This resulted in an insignificant difference of 0.16% or R380 299 in monetary value. • All Programmes reported expenditure of more than 99% of their allocated budget. • This spending was however achieved in the context of budgetary pressures experienced by the IPID. It must be noted that the Department recorded accruals to an amount of R23 Million, due to invoices which could not be accommodated within the restricted baseline of the IPID. • This is an indication that the budget allocation was not enough to support the operations of the Department.

EXPENDITURE PER PROGRAMME Ipid Overall Expenditure – 2016/17

EXPENDITURE PER ECONOMIC CLASSIFICATION Ipid Overall Expenditure – 2016/17

SUMMARY OF EXPENDITURE FOR THIRD QUARTER: APRIL – DECEMBER 2016 Ipid Third Quarter Expenditure – 2016/17 • Economic Classification Spending Analysis: • At the end of the third quarter the IPID should have spent 75% of its budget appropriation. • The reported expenditure of 79.5% resulted in a spending variance of 4.5%. • Spending pressures were experienced in all economic classifications. • During the third quarter, the management of IPID took resolutions to curb spending pressures experienced as well as to prevent the IPID from overspending at year end. • * These reflect budget allocations before final shifting and virements in quarter 4

SUMMARY OF EXPENDITURE FOR THIRD QUARTER: APRIL – DECEMBER 2016 Ipid Third Quarter Expenditure – 2016/17 • Programme Spending Analysis: • At the end of the third quarter, overspending against the 75% spending target was already recorded in Programme 1 and Programme 2, were the bulk of personnel and support services are accommodated. • Both Programmes reported a higher than planned spending of 5.4% and 5.2% respectively. • Due to the limited budget allocation, analysis confirmed that the remaining available budget will not be enough to settle all contractual obligations, such as office accommodation, security and cleaning services up to the end of the financial year, and as such Management Resolutions were implemented to prevent over-expenditure. • * These reflect budget allocations before final shifting and virements in quarter 4

SUMMARY OF EXPENDITURE FOR FOURTH QUARTER: APRIL 2016 – MARCH 2017 Ipid Fourth Quarter Expenditure – 2016/17 • Economic Classification Spending Analysis: • As at the end of the fourth quarter, the IPID reported an actual expenditure of 99.8% • During the fourth quarter, the management resolutions to curb spending pressures assisted the department in not incurring unauthorised expenditure by overspending on the overall budget appropriation of the IPID. • Despite managements interventions, the IPID still experienced accruals to an amount of R23 million, most of which constitute operational contractual obligations. • This is clear evidence that the IPID budget allocation is not enough to cover the current operations, particularly on contractual obligations as the bulk of accruals related to operational obligations such as office leases, cleaning services, security services, and maintenance and rental of vehicles for investigation purpose.

SUMMARY OF EXPENDITURE FOR FOURTH QUARTER: APRIL 2016 – MARCH 2017 Ipid Fourth Quarter Expenditure – 2016/17 • Economic Classification Spending Analysis: • All Programmes reported more than 99% expenditure of their allocated budget however the majority of performance targets were not achieved as planned due to reallocation of limited resources to cover some of the unforeseen investigative activities. • Unanticipated litigations/ labour court settlements also added to the spending pressure experienced by the IPID as funds had to be reprioritised away from various planned activities in order to settle such.

FORWARD LOOKING IMPLICATIONS Ipid Fourth Quarter Expenditure – 2016/17 • The IPID is in need of additional funding to sustain its current and future operations. • Continuous reduction of the IPID limited budget will not only affect the Departments` ability to meet its Constitutional mandate but may also result in litigations due to the risk of default on IPIDs contractual obligations. • The reported accruals confirm the Department case of underfunding, considering that contractual annual escalation fees and wage increments not funded in appropriations afforded to the IPID. • The IPID has had to reduce annual performance targets in order to ensure that only funded indicators were included in the annual performance plan of 201718. • A recent Constitutional Court Judgement on IPIDs independence will also put more pressure on the limited budget allocation, same as Farlam Commission recommendations which are not funded. • A reduction of IPID approved establishment from 423 personnel to 388 due to budgetary reductions confirmed to the Department that the implementation of approved Expansion Strategy and funding of Section 23 will not be implemented as recommended as they are currently not funded. • The Department continues to engage various relevant Stakeholders for intervention and support on the efforts made to secure additional funding for the execution of the IPID mandate in line with the IPID Act.

SUMMARY OF Q3 PERFORMANCE * This is the performance against Programme Performance Indicators (35) only, it excludes the Strategic Indicators

SUMMARY OF Q4 PERFORMANCE (CONTINUED) * This is the performance against Programme Performance Indicators (35) and the Strategic Indicators (6)

PERFORMANCE PER PROGRAMME 1

PERFORMANCE PER PROGRAMME 2 (CONTINUED)

CONCLUSION • Indicators were revised to reflect funded activities • Continuous reprioritisation of core activities such as investigations to sustain operations within a constrained budget • Prioritisation of high impact investigations • Continuous implementation of cost containment measures • Monitor implementation of identified corrective actions • Filling of vacant posts

Thank you

IPID Expenditure and Performance Report Q3-Q4 2016/2017