ATC151028: Portfolio Committee on Home Affairs Budgetary Review and Recommendation Report- 2014/15 Financial Year, dated 27 October 2015
Home Affairs
PORTFOLIO COMMITTEE ON HOME AFFAIRS BUDGETARY REVIEW AND RECOMMENDATION REPORT- 2014/15 FINANCIAL YEAR, DATED 27 OCTOBER 2015.
1. Introduction
As specified by section 5 of the Money Bills Amendment Procedures and Related Matters Act (MBAP) of 2009, the National Assembly, through its Committees, must annually assess the performance of each national department. A Committee must submit the Budgetary Review and Recommendation Report (BRRR) annually to the National Assembly which assesses the effectiveness and efficiency of the department’s use and forward allocation of available resources and may include the recommendations on the use of resources in the medium term.
The Committee must submit the BRRR after the adoption of the budget and before the adoption of the reports on the Medium Term Budget Policy Statement (MTBPS) by the respective Houses in November of each year. The Portfolio Committee on Home Affairs (the Committee) considered its BRRR after being briefed by the Auditor General (AG), the Department of Home Affairs (DHA), Electoral Commission (IEC) and the Government Printing Works (GPW) on their 2014/15 annual reports on 13 October 2015.
1.1 The Portfolio Committee on Home Affairs
In line with the core objectives of Parliament the mandate of the Committee is to consider and pass legislation; oversee and scrutinise executive action; facilitate international participation; and facilitate co-operative government and facilitate public participation and involvement.
On the basis of challenges and problems encountered by the Committee in its oversight and from the 2015 State of the National Address and National Development Plan 2030; key issues were put forward by the Committee covering the following entities: the DHA, IEC and GPW.
The Report of the Committee is based primarily on the following activities:
- Briefings by Department and Committee deliberations.
- Drafting, consideration and voting on internal committee reports.
- Scrutinising Strategic and Annual Performance Plan, the State of the Nation Address, Ministers’ speeches, Policy documents, Estimates of National Expenditure, Medium Term Expenditure and Budget allocations as well as other external briefings and reports.
- Conducting oversight visits, public participation during constituency periods and committee meetings.
1.2 The Department of Home Affairs
The mission of the DHA is to ensure the efficient determination and safeguarding of the identity and status of citizens and regulation of migration to ensure security as well as to promote and fulfil South Africa’s international obligations. This mandate is administered through the following three overarching budget programmes:
Programme 1 - Administration: The programme provides leadership, management and support services to the Department of Home Affairs.
Programme 2 - Services to Citizens: The programme provides secure, efficient and accessible services and documents for citizens and lawful residents. This programme also includes the transfers to the IEC and GPW.
Programme 3 - Immigration Services: The programme facilitates and regulates the secure movement of people into and out of the Republic of South Africa through ports of entry; determines the status of asylum seekers and regulates refugee affairs. It also confirms and provides enabling documents to foreign visitors legally residing within the Republic of South Africa and enforces immigration legislation and effects deportations.
2. THE DEPARTMENT’S STRATEGIC PRIORITIES AND MEASURABLE OBJECTIVES
National government has fourteen outcomes and the DHA contributes to four of these outcomes, which comprise three Strategic Outcome Orientated goals for the 2015-2020 period. These in turn translate into nine Strategic Objectives as follows:
|
Strategic Objectives |
Strategic Outcome Oriented Goal 1: Secure South African citizenship & identity. |
|
|
1.1 |
All eligible citizens are issued with enabling documents relating to identity and status. |
|
|
1.2 |
An integrated and digitised National Identity System (NIS) that is secure and contains biometric details of every person recorded on the system. |
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Strategic Outcome Oriented Goal 2: Secured & responsive immigration system. |
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|
2.1 |
Movement of persons in and out of the country managed according to a risk-based approach. |
|
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2.2 |
Refugees and asylum seekers are managed and documented efficiently. |
|
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2.3 |
Enabling documents issued to foreigners efficiently and securely. |
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Strategic Outcome Oriented Goal 3: Services to citizens & other clients that are accessible & Efficient. |
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3.1 |
Secure, effective, efficient and accessible service delivery to citizens and immigrants. |
|
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3.2 |
Good governance and administration. |
|
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3.3 |
Ethical conduct and a zero tolerance approach to crime, fraud and corruption. |
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3.4 |
Collaboration with relevant stakeholders in support of enhanced service delivery and core business objectives. |
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2.1. The Department’s Contribution to the National Development Plan (NDP)
The major focus of the NDP is to confront the triple challenge of poverty, inequality and unemployment by achieving higher growth rates. The DHA contributes to the following to the NDP:
- Facilitating the acquisition of the critical skills as to facilitate the building of capable state.
- Playing a role in enabling regional development by working with SADC countries to improve the efficient, secure and managed movements of people.
- Providing citizens with identity that gives them access to rights and services.
- Through the modernization programme, seeking to reduce fraud and the cost of doing business.
2.2. Key challenges faced by the DHA
The DHA identified the following as challenges in the department in its Annual Report for 2014/15:
- Unreliable networks and power supply. This disrupts services.
- Long queues at the live capture offices was a result of network failures. The shortage of equipment and limitations as a result of the rented offices.
- Capacity shortages at the Standing Committee on Refugee Appeals (SCRA) and Refugee Appeals Board (RAB) result in reviews and appeals for asylum claims not being finalised in time.
- The need for the Department of International Relations DIRCO and the DHA to agree on, and to develop, adequate accounting systems for accounting and reporting on transactions at missions.
2.3. Ministerial Priorities to Address Challenges
In support of achieving the strategic objectives of the DHA, government priorities and the NDP, the DHA has identified the following Ministerial Priorities for delivery by 2019:
|
Priority |
Main 2019 Delivery |
|
1. Complete the Modernisation Programme |
Integrated digital systems and re-engineered processes (NIS, immigration and related) managed and protected by the required compliment of effective professionals. |
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2. Establish an effective BMA |
Founding legislation, model and basic structures, people, processes and systems in place. |
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3. Upgrade key ports of entry (6) |
New model piloted and implemented in 6 POEs with significant improvements in respect of infrastructure, processes and leadership. |
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4. Comprehensive review of Immigration Policy |
Green Paper and White Paper approved and new comprehensive legislation drafted. |
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5. Improved client experience through leadership (Moetapele) |
Officials at all levels responding to client needs by demonstrating leadership through improving front and back office culture, processes and systems.
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3. ANALYSIS OF THE ANNUAL PERFORMANCE PLAN OF THE DHA
The Department of Home Affairs’ mandate is to safeguard the identity and status of every South African. Its strategic focus therefore primarily seeks to: secure the identity of each citizen; to manage immigration effectively and moreover, to deliver services effectively and efficiently. This is encapsulated in the vision and mission of the Department, and also aligned to the broader objectives of government’s National Development Plan (Vision 2030).
The Department has ambitions to make its mark in the country to be known as a professional department that delivers critical services in a high security environment and play a key role in national and personal security; in service delivery; and in socio-economic development.
The Annual Performance Plan 2015/16 of the Department of Home Affairs (DHA) (APP 2015/16). The APP 2015/16 is aligned to the Department’s Strategic Plan 2015 – 2020 as well as four of Government’s 14 Priority Outcomes, the Medium Term Strategic Framework (MTSF) 2015 – 2020 and the National Development Plan (NDP) Vision 2030.
The DHA’s strategic priorities for the 2015-2018 Medium Term Expenditure Framework (MTEF) as well as planned objectives and targets for the 2015/16 APP have a total of 9 objectives and 36 targets for the year. The number of objectives and targets across the three budget programmes (administration, services to citizens, and immigration services) in the current and former years as well as most recent performance rates are shown in table below.
|
Programme |
Objectives 2015/16 |
Targets 2015/16 |
Objectives 2014/15 |
Targets 2014/15 |
Base: Achieved in 2014/15 |
|
1. Administration |
4 |
19 |
3 |
21 |
17 (81%) |
|
2. Services to Citizens |
2 |
5 |
4 |
7 |
3 (43%) |
|
3. Immigration Services |
3 |
12 |
4 |
9 |
6 (67%) |
|
Total |
9 |
36 |
11 |
37 |
26 (70%) |
4. SECTION 32 EXPENDITURE REPORTS
In August 2015 the DHA presented on its fourth quarter expenditure and progress against objectives (January to April 2015). In addition reports were received from the nine DHA Provincial Managers on first quarter performance (April to June) during meetings at Parliament and oversight to the Northern Cape.
Fourth Quarter 2014/15 Budget of the DHA
Provincial 2015/16 First Quarter Expenditure
|
Province |
Expenditure Quarter 1 |
Percentage Spent |
|
Eastern Cape |
56 328 000 |
25.3 |
|
Free State |
54 277 000 |
36 (significant Goods and Services budget shortage) |
|
Gauteng |
131 146 000 |
34 (contractual commitments on goods and services) |
|
Kwazulu-Natal |
93 148 000 |
42 (as at mid-August and in-line with projections) |
|
Limpopo |
65 130 000 |
25.6 |
|
Mpumalanga |
52 940 000 |
26 |
|
North West |
41 255 000 |
25 |
|
Northern Cape |
32 693 000 |
32 |
|
Western Cape |
42 137 000 |
24 |
The Committee was concerned about the Gauteng Provincial Manager identifying the possibility of collusion and security breaches in the Smart Identification Card application process.
5. ANALYSIS OF THE DHA ANNUAL REPORT AND FINANCIAL STATEMENTS
5.1 Selected Performance and Finance by Programme
The DHA plans and reports both in terms of budget programmes and results based outcomes relating to national priorities and its three programmes as follows:
Programme performance 2014/15
|
Programme |
No of targets |
Achieved |
Not achieved |
% achieved |
|
21 |
17 |
4 |
81% |
|
7 |
3 |
4 |
43% |
|
9 |
6 |
3 |
67% |
|
Total |
37 |
26 |
11 |
70% |
The DHA reported fully achieving 70% or 26 of the 37 targets it set for 2014/15. This shows an improvement of 17% from what was achieved in 2013/14 (53% of the targets it set). Despite reporting achieving 70% of its set targets, the Auditor-General has indicated, as in the previous financial year (2013/14), that some reported performance information was not valid, accurate and complete when compared to the source information or evidence provided. This was due to lack of frequent review of the validity of reported achievements against source documents.
It should be noted that the DHA’s initial allocation in April 2014 was R6.6 billion. However, during the adjustment estimate, an additional amount of R600 million was received as self-financing. When broken down, the additional funding was allocated for cash in transit, printing costs, courier services, smart ID cards for 16 year old and above, as well as for the enhancement of offices in line with the smart ID card rollout. The DHA is also allowed to retain its own revenue, which is derived from services rendered to citizens and foreign visitors according to set tariffs. Own revenue amounted to R767 million. Therefore, the DHA had a total of R7.99 billion for the 2014/15 financial year across the following three programmes.
Programme 1: Administration
|
Total targets set |
21 |
|
Targets achieved |
17/21 |
|
Targets not achieved |
4/21 |
|
Success rate |
81% |
|
Total budget spent |
R1.949 billion or 99.99% |
A total of 81% of 21 targets are reported to be achieved. This shows an improvement in targets achieved compared to the previous financial years (23% and 50% in 2012/13 and 2013/14 respectively).
The DHA managed to spend 99.99% of the Administration budget. The Administration programme comprised 27% of the DHA total budget for 2014/15. This programme was allocated an adjusted budget of R1.9 billion in 2014/15. This shows an increase of 6.8% compared to R1.8 billion received in 2013/14 financial year. The increases in budget allocation are recorded in all sub-programmes. The significant increases in allocation are recorded in Cooperate Services (14%) and Office Accommodation (5%).
The only variance recorded under the Administration programme is within the Transversal Information Technology Management sub-programme. In this regard, the Department reported that there were financial constraints that affected the Modernisation project and only 26 offices out of 140 are equipped with network redundancy (dual links), while the rest are on single connectivity. This is said to be posing a risk of service continuity in the Department. Also the Department has suffered service interruptions due to power cuts (load shedding) leading to service interruptions in Live Capture offices.
Programme 2: Citizen Affairs
|
Total targets set |
7 |
|
Targets achieved |
3/7 |
|
Targets not achieved |
4/7 |
|
Success rate |
43% |
|
Total budget spent |
R4.553 billion (99.99%) |
A total of 43% of targets set for Programme 2 were met during the period under review. This shows a decrease compared to 70% of targets met in the previous financial year. The AG indicated (as was the case the previous year) that significant targets within the programme were misstated due to inadequate review of reported achievements against source documents provided.
According to the Department, the failure to achieve all the targets in this programme are due to turn-around times that were not met. For example, services were provided using legacy systems that were being replaced in 140 offices and converted to fully digital processes. The Department reported that running a dual system creates technical problems and puts pressure on the limited resources of the Department. Also the disruption caused by external power cuts (load shedding) and by unreliable networks, both of which are largely outside of the control of the DHA.
Citizen Affairs comprised 63% of the total DHA total budget for 2014/15. This programme was allocated R4.5 billion in 2014/15 compared to R4.3 billion allocated in 2013/14 (this shows an increase of 4.7%). The increases in budget allocation under this programme was recorded in six of the seven sub-programmes. The only sub-programme that experienced a decrease in allocation was the Film and Publication Board (moved to Department of Communications). Despite having only achieved 43% of its targets, budget expenditure reached 99.99% in 2014/15.
Programme 3: Immigration Services
|
Total targets set |
9 |
|
Targets achieved |
6/9 |
|
Targets not achieved |
3/9 |
|
Success rate |
67% |
|
Total budget spent |
R721.126 million or 99.99% |
A total of 67% targets are reported to be achieved. This, although relatively low, it is a significant improvement from the previous financial years: 43% in 2013/14 and 18.8% in 2012/13. Historically, the Department appears to be struggling with achieving set targets under this function.
Key milestones have been achieved in the immigration services programme. To highlight a few, during the 2014/15 financial year, the Immigration Amendment Acts, 2007 and 2011 and the long awaited Immigration Regulations, 2014, came into operation on 26 May 2014. These amendment were made to better manage immigration in a way that balances South Africa’s openness to travellers, as well as developmental and security imperatives. However, the AG has also again indicated that significant targets within the programme were misstated due to inadequate review of reported achievements against source documents provided.
Immigration services comprised only 10% of the DHA total budget for 2014/15. This programme was allocated R721 million in 2014/15 compared to R821 million (this shows a decrease of 12.2%). The decrease in budget allocation in this programme is recorded in two sub-programmes, namely: the Admission services and Immigration Services.
5.2. Financial Statements
- Unauthorised Expenditure
During 2013/14 the Department did not incur any unauthorised expenditure, therefore the balance remains at R1.088 billion. According to the Director-General, the unauthorised expenditure of R99 million, which relates back to the 2005/06 financial year was authorised by the Standing Committee on Public Accounts (SCOPA). However, the DG reported that there is a delay in the proclamation of the finance bill. It should be noted that, according to the DG, R53 million of the R99 million was authorised with a provision that it must be funded within the budget allocation of the Department.
The DG also reported that a resolution is still awaited with regard to the balance of R687.3 million reported in the 2010/11 financial year and R301 million reported in the 2012/13 financial year as the Department presented to the SCOPA on 4 March 2015.
- Irregular Expenditure
The Department incurred irregular expenditure totalling to the value of R1.8 million during the period under review. The Department reported that this irregular expenditure has not been condoned, as it still under investigation. It is reported that the main reason for the irregular expenditure is the use of a single quotation without approval for a deviation.
A resolution is still awaited with regard to the balances of R687.3 million in the 2010/11 financial and R301 million reported in the 2012/13 financial year as the department presented to the SCOPA.
- Fruitless and Wasteful Expenditure
During this financial year, a total amount of R58 000 has been recorded as fruitless and wasteful expenditure. The Department reported that this fruitless and wasteful expenditure is a result of interest paid on overdue accounts.
5.3. Overview of Auditor-General (AG) report
The AG report, in the annual reports of government departments and entities, speaks to the reliability of information contained in the report as well as achievement of performance targets. The AGs audit opinion can be categorised into three main areas of importance:
- Audit Opinion;
- Matters of Emphasis
- Performance against Objectives and Legislation
5.3.1. Audit Opinion
The AG expressed a qualified audit opinion of the DHA’s 2014/15 Annual Report, this means that the AG could not obtain sufficient appropriate audit evidence for the financial statement accounts and balances. The AG was unable to confirm these accounts and balances by alternative means due to the absence of verifiable accounting records and the required account balance reconciliations.
While the 2014/15 audit opinion is an improvement from the 2013/14 disclaimer the DHA received, it is still reason for concern. It should be noted that in 2010/11 the DHA received its first unqualified report in a number years, but reverted to a qualified audit in 2011/12, 2012/13 and 2014/15.
|
2009/10 |
2010/11 |
2011/12 |
2012/13 |
2013/14 |
2014/15 |
|
Qualified |
Unqualified |
Qualified |
Qualified |
Disclaimer |
Qualified |
Overview of the audit opinions for the Department of Home Affairs from 2009/10-2014/15
In 2014/15 AG was unable to find adequate information in the following three areas, the latter two of which are repeat concerns:
a) Departmental Revenue: the AG was unable to obtain sufficient audit evidence for the financial statement accounts and balances. Therefore, the AG could not confirm the accounts and balances by alternative means due to lack of appropriate and verifiable accounting records and the balance reconciliations. Consequently, the AG reported that it could not determine whether any adjustments to the financial statements items were necessary. These financial statements accounts and balances are as follows:
- Departmental revenue – stated at R767.1 million (2014: R744.1 million).
- Payables – arising from unallocated cash receipts transaction stated at R748.3 million (2014: R646.2 million).
- Accrued departmental revenue – stated at R588.6 million (2014: R440.6 million)
- Contingent assets – stated at R910.3 million (2014: R810.5 million).
b) Accruals and payables not recognised: This is a continued area of concern from previous years. The AG could not obtain sufficient appropriate audit evidence that confirmed balances with other Departments due to lack of appropriate account balance reconciliation. Therefore, the AG could not confirm the accounts and balances by alternative means due to lack of appropriate and verifiable accounting records and the balance reconciliations. As the results, the AG could not determine whether any adjustment to the following balances in the financial statements was necessary:
- Accruals and payables not recognised – stated at R296.3 million (2014: R163.6 million).
- Contingent liabilities – stated at R33.9 million (2014: R136 million).
c) Intangible capital assets: This is a cumulative issue emerging in 2012 where inadequate records were available for major tangible assets valued at R1.19 billion (including the 2013 amount of R1042 million) and minor assets of R197 million (2013: R179.6 million). For this financial year, the AG was unable to determine whether any adjustment to intangible capital assets stated at R417.5 million (2014: R943.2 million) in the financial statements were necessary.
5.4 Human Resources
The overall vacancy rate in the Department has increased from the 6.6% recorded in 2013/14 to 6.9% in 2014/15 (In total there were 715 vacancies out of the 10 391 total approved posts). The highest vacancy rate is in the in the Administration programme at 8.7% (this shows a decrease from the 9.4% recorded in 2013/14). Citizen Affairs has highest number of vacancies, since it is the biggest programme with the matching highest number of employees: 548 vacancies out of a total establishment of 8175 (the vacancy rate was 514 out of a total establishment of 8335 in 2013/14).
Table: Equity Statistics
|
Race |
2013/14 |
2014/15 |
|
Africans |
8367 (86.6%) |
8380 (86.9%) |
|
Coloureds |
556 (5.6%) |
581 (6%) |
|
Indians |
79 (0.8%) |
84 (0.8) |
|
Whites |
662 (6.9%) |
634 (6.5%) |
The table above depicts that there has been an increase in the filling of posts within the African, Coloureds and Indians category and a decline in the Whites category. Even though there has been increases in the filling of posts, the table shows that Whites, Coloureds and Indians are under-represented in the workforce in terms of national demographics. Therefore, the Department should set incremental targets to ensure that creation of opportunities for all racial groups, with a view to creating a representative workforce.
As at March 2015, the Department stands at 1.4% for people with disabilities, which is below the 2% target. With regards to the Senior Management Service members (SMS), the Department stands at 55% of male SMS employees and 45% of female SMS employees compared to 54 % (male) and 46% (females) in the 2013/14 financial year. This is still below the target of 50/50 gender parity at SMS level.
Of the reasons for staff leaving the Department, the percentage of dismissals due to misconduct has increased to 45% in 2014/15 from 18% in 2013/14, whilst resignations have decreased from 29% to 12% in 2014/15. Of the 180 reported disciplinary hearings, 13% (23) were dismissed and 16% (29) were suspended without pay. A significant percentage of misconduct is classified as Fraud and Corruption standing at 85 out of 180 cases (47%); with next most common reason being improper conduct with 19 cases.
6. CONSIDERATION OF OTHER SOURCES OF INFORMATION
6.1 State of the Nation Address 2015
The 2015 SONA was reflective of developments in the country in the last twenty years; the June Address focuses more on current and future initiatives. Briefly the issues covered in SONA that relate to Home Affairs are:
· Inter-ministerial Task Team on Service Delivery.
· Presidential Business Working Group.
· Creating Decent Work especially for the Youth.
· Regional Integration and Economic Growth.
- Build understanding, tolerance and reconciliation to fight intolerance.
- Oversight Visits
The Portfolio Committee conducted two oversight visits, namely to Gauteng Province and the Northern Cape Province in 2014 and 2015 respectively. It also formed part of Joint Oversight Visits, the reports of which have not yet been adopted.
6.2.1 Gauteng Oversight Visit
During the oversight to Gauteng, the Portfolio Committee on Affairs visited the Head Office of the Department of Home Affairs, the Government Printing Works and the Electoral Commission. In addition, the Marabastad Refugee Reception Office and the Tshwane Interim Refugee Reception Office and Lindela were visited. Based on the findings of the oversight, the Committee recommended the following:
The Headquarters for the Department Home Affairs
- The DHA should consider creating or looking for new Headquarters of the DHA with adequate accommodation for all staff and the Ministry.
- The Department should consider partitioning the Command Centre and the Help Desk at the head office.
- The DHA should ensure that the Batho Pele principle posters are on the wall of the offices.
- The DHA should ensure that improvements, renovations and decorations are made to the building to improve its suitability for staff.
- The DHA should upgrade their IT systems as a matter of urgency.
The Marabastad and Tshwane Interim Refugee Reception Centres
- The Minister of Home Affairs and the DHA should consider moving the Marabastad Reception Centre to a place where it would be more appropriate to handling of asylum seekers.
- The DHA should ensure that there is sufficient security to manage crowds at the Marabastad Refugee Reception Centre.
- The DHA should ensure that the perimeter fence is attended to as a matter of urgency with regard to ensuring the security and safety of asylum seekers while inside the Centre.
- The DHA should ensure that the computers at centres are upgraded as a matter of urgency.
- The DHA should consider the continued use of TIRRO given the current demands and if so invest in improving the working conditions and consider renovating the facility.
The Government Printing Works (GPW)
- The Ministers of Home Affairs and Public Works should work together with the Department of Public Works to ensure that the security wall around this National Key Point security printing facility is completed as a matter of urgency.
- The GPW should pay attention to addressing their high vacancy rate and plan for market related salaries once the State Printers Bill is brought into effect.
The Electoral Commission (IEC)
- The Electoral Commission should re-evaluate if its current electric power arrangements are sufficient to cope with all possible risk scenarios.
The Lindela Repatriation Centre
- The DHA should ensure that the rooms at Lindela Repatriation Centre have an additional toilet and a shower for the inmates
- The DHA should ensure that the beds and blankets should be numbered and that the upper beds have a step ladder.
- The DHA should continue to make a suitable office and an open invitation at the Centre available to the South African Human Rights Commission.
- The DHA should ensure that the immigration law is implemented and intervene where there are unintended consequences.
- The DHA should fast-track the implementation of the Border Management Agency to improve immigration management.
6.2.2 Northern Cape Oversight visit
On its oversight visit to the Northern Cape, the Portfolio Committee on Affairs visited the offices of the DHA and the several Ports of Entry. Emanating from its engagements and observations during oversight to the Northern Cape, the Portfolio Committee on Home Affairs recommended the following to the Minister of Home Affairs:
Citizen Services
- More proactive communication and engagement with communities around Upington is needed to encourage them to apply for and collect Smart ID Cards irrespective of their month of birth.
- The lack of public transport and long distances between service points requires that the province have more access to vehicles and mobile offices to provide services to communities.
- Better security measures are needed for safeguarding all uncollected civic documents (such as Smart ID Cards, Identity Documents and Passports) behind the counters at Upington office during office hours.
- The uninstalled scanner and metal detector in the Upington Office must be installed as soon as possible.
- Civic and Immigration Officials should be provided with new uniforms as a matter of urgency.
- A method needs to be found to better specify the number of children in each province with passports that could need UBCs, in order to improve planning.
- A more efficient method for keeping mobile offices fully functional is needed in Northern Cape.
- Review the Provincial Manager also acting in a district manager capacity.
Immigration Services
- Whilst appreciating additional allocation of inspectorate to the Province, there is still a need of more additional capacity in this regard.
- The security and passport control of the railway line crossing the international border at Nakop needs to be significantly improved.
- The Memorandum of Understanding between the DHA and SanParks concerning the residential accommodation of the officials at Twee Rivieren port of entry needs to be formalised and finalised.
- The operating hours of Home Affairs need to be aligned with that of SanParks at Twee Rivieren port of entry to address operational challenges.
- Provision needs to be made for boardrooms, holding rooms and storage spaces in the infrastructure plans of ports of entry.
- The Rietfontein port of entry infrastructure and accommodation is inadequate and needs upgrading to more permanent structures.
- The roll-out of the eMCS to Gemsbok and other ports of entry needs to be prioritised.
- The contracts of Home Affairs appointed cleaners need to be re-evaluated at border posts where RAMP cleaning services are present.
- More substantial medical provisions should be provided for isolated ports such as Nakop.
- Realistic targets should rather be set for the number of inspections to be conducted rather than amounts of persons detained or deported in order to improve security and reduce wrongful detention.
- Re-evaluate the level of the Manager at Nakop port of entry to be commensurate with duties.
- Improve the provision of accommodation for senior staff at Nakop port of entry.
- Devise an efficient deployment system of inspectorate to all ports of entry and small offices to deliver services.
General
- The DHA should consider the significant need to address human resource constraints in the Northern Cape.
6.3 Budget Vote Report for 2015/16 financial year
The spending focus over the medium term will be on the two main mandates of DHA, namely; the civics mandate (falls under Programme 2) and immigration mandate (falls under Programme 3).
|
Programme |
Budget |
Nominal Rand Change |
Real Rand Change |
Nominal % Change |
Real % Change |
|||
|
R million |
2014/15 |
2015/16 |
2016/17 |
2017/18 |
2014/15-2015/16 |
2014/15-2015/16 |
||
|
Administration |
1 860.3 |
1 598.2 |
2 090.5 |
2 198.0 |
-262.1 |
-335.3 |
-14.09 |
-18.02 |
|
Citizen Affairs |
4 106.9 |
4 131.7 |
4 352.6 |
4 050.3 |
24.8 |
-164.4 |
0.60 |
-4.00 |
|
Immigration Affairs |
656.5 |
720.9 |
753.1 |
801.2 |
64.4 |
31.4 |
9.81 |
4.78 |
|
Total |
6 623.7 |
6 450.8 |
7 196.2 |
7 049.5 |
-172.9 |
-468.4 |
-2.61 |
-7.07 |
The budget of DHA showed a decrease from R6.6 billion to R6.4 billion between 2014/15 and 2015/16. This showed a real decrease of 7 percent in its allocated budget for the year under review (before inflation it was a decline of 2.61 percent).
The total budget of DHA included allocations to GPW and the Electoral Commission (IEC). In total, the budget of DHA was reduced by R173 million from 2014/15 (across the three programmes indicated in the table above). The biggest decline was for the Administration programme.
The Department anticipated that its departmental receipts (fees generated from services rendered by the Department) will increase significantly in 2015/16, up R365.5 million from the previous year to R790.8 million. In nominal terms, it was expected that revenue will increase by 116.4 percent in 2015/16 (or 106.5 percent when taking into account inflation/ real terms). Most of the additional revenue will be generated through the processing of ID documents, passports and permits, etc.
Programme 1: Administration
The total budget for this programme was R1.5 billion for 2015/16, down from R1.8 billion in the previous financial year. Programme 1 showed a nominal decrease of R262 million (or 14 percent decrease) from previous financial year. The effects of inflation (real value) resulted in a real budget decline of 18 percent. Within the Administration Programme, 3 of 4 sub-programmes showed a decrease in allocations. These were:
- Transversal Information Technology Management sub-programme – declined by R250 million (37.4 percent in real terms).
- Another year on year decrease in allocation within Office Accommodation sup-programme with R150 million less than 2014/15 (-31.6 percent in real terms).
- Corporate Services sub-programme – declined by R5.7 million (5.5 percent in real terms).
The Support Services sub-programme experienced a nominal increase of R3.4 million (a decline in real terms of 5.4 percent). The reduction in expenditure was concerning given that Corporate Services only managed to fully achieved 6 of its 14 targets (43 percent) for this important outcome in the 2013/14 Annual Report. This sub-programme largely managed one of the DHA’s main objectives - a service that is efficient, accessible and corruption free.
Programme 2: Citizen Affairs
Programme 2 is the largest in DHA, in terms of budget allocation, and constituted 56 percent of overall departmental budget. This programme showed a small nominal increase in allocation of R5.6 million from the previous year. However, the effects of inflation converts the nominal growth of 4.6 percent to a decline of 0.2 percent. In 2014/15, the DHA indicated that it would reduce spending in line with Cabinet approval, which will mainly be aimed at non-core areas of operations such as catering, venue hire, etc. These saving would span over the 2014/15 – 2016/17 MTEF.
A total of three out of the seven sub-programmes shows a decrease for 2015/16. Of note was the Status Services sub-programme, which showed R443 million reduction in allocation from the previous year. This showed an 80 percent (in nominal terms) reduction in allocation. When considering inflation, this sub-programme’s allocation showed a decrease of R448 million (81.3 percent in real terms).
A nominal decrease of R300 000 (1.4 percent in nominal terms) in allocation was noted for the Citizen Affairs Management sub-programme. When considering inflation, this sub-programme’s allocation further decrease by R1.4 million (5.7 percent in real terms). The total budget for this sub-programme is down from R24.7 million in 2014/15, to R24.4 in 2015/16.
The Services to Provinces sub-programme, in contrast, received the biggest increase R103.5 million (5.5 percent in nominal terms and 0.7 percent in real terms) in this programme. This increase was encouraging since the sub-programme provides for all civic, immigration and refugee affairs functions across all nine provinces. This sub-programme takes up 52 percent of the programme’s budget allocation. While the Access to Services sub-programme received an increase of R4.8 million (4.7 percent nominal increase), inflation erodes this growth to a decline of 0.05 percent (real terms).
The DHA allocated funds to the IEC, which manages national, provincial, and municipal elections. The DHA transfer to the EC for 2015/16 amounts to R1.52 billion, which decreases slightly from R1.55 billion the previous year. The 2014/15 allocation to the IEC made provision for the 2014 national and provincial elections, while in 2016 the Local Government Elections were due in 2016. The IEC allocation for 2016/17 will therefore increase to R1.59 billion to make provision for the elections.
In terms of the economic classification, savings in Programme 2 relate to the following:
- Consumables (stationary, printing and office supplies): from R506.6 million the previous year to R79.6 million.
- Goods and services: from R843.8 million the previous year to R400.8 million.
Programme 3: Immigration Affairs
This was the smallest programme in terms of budget allocation. The allocation for Programme 3 increased from R656 million in 2014/15 to R720.9 million for 2015/16. This programme showed a nominal increase of 9.81 percent (or 4.78 percent when considering inflation) from the previous financial year.
The increase in allocation was notable for the Immigration Services sub-programme; i.e. 15.7 percent increase in nominal terms and 10.4 percent in real terms). The DHA should be commended for prioritising this sub-programme in terms of allocation as this sub-programme had been, for several years, the worst performing programme and/or section of the DHA in terms of the number of strategic targets achieved.
Within the Immigration Affairs Programme, the DHA envisaged introducing the Refugees Amendment Bill, 2015, with the view of addressing processes and procedures relating to, amongst others, the adjudication, review and appeal processes pertaining to asylum seekers and refugees. It also envisaged to introduce the Border Management Agency Bill, 2015, into Parliament during 2015 so as to establish the Border Management Agency which will set out its purpose, mandate and the principles by which it will operate. The increase in allocation for this programme is in part due to these two bills which have subsequently been tabled at Parliament.
- The Electoral Commission
The IEC has three programmes, namely:
Programme 1: Administration –The budget allocation is directed at supporting the strategic management and core business of the IEC. Over the 2015 MTEF, R452 million has been allocated to the compensations of employees, R1.2 billion for goods and services and R57.5 million to capital assets. The goods and services spending increases during election periods.
Programme 2: Electoral Operations – An amount of R893 million was allocated to the programme for goods and services in the 2015 MTEF period and compensation to employee amounts to R1.2 billion. Expenditure increases by 198 percent for the coming election year.
Programme 3: Outreach – Over the MTEF period, an amount of R384.1 million was allocated mainly for goods and services and R233.3 million to compensation of employees. The expenditure peaks during registration and election periods when civic education and communication programmes peak. A further factor is the international observer missions which are hosted by Commission Services. The rate of registration of young voters and specifically those citizens born after 1994 represents one of the major challenges to the IEC.
The Electoral Commission’s activities normally coincide with the five year electoral cycle. The spending focus over the medium term will be on the 2016 local government elections. In 2015/16, the spending focus will on the two registration weekends preceding the 2016 local government elections and 2017/18, non-election year, the focus will be on the ICT refresh and zip-zip replacement programmes and the IEC has committed to find savings amounting to R180 million over the medium term of these projects. The bulk of spending in registration and elections years is linked to:
- The compensation of approximately 263 184 staff to work at the 22 600 voting stations in elections.
- The intensive training programmes that the electoral staff.
- The continuous registration and two registration weekends.
- Voter education and civic democracy education programmes.
- Ballot papers and stationery used at voting stations.
- Extensive communication programmes via various media platforms.
- Updating of the electoral systems and databases in line with elections specific requirements.
- The updating and rolling out of the IT infrastructure.
Expenditure in a non-election period will focus mainly on the civic and democracy education and long term influences such as permanent staff costs and administrative overheads.
The IEC had a total establishment of 1 034 posts at 30 September 2014, of which 932 were filled. During 2015, the IEC embarked on the restructuring process and it will be a phased project taking into account the local government elections in 2016. Over the MTEF, approximately 6 000 expansion staff and 263 184 staff will be appointed on contract.
The budget for 2015/16 was R1.58 billion; across the three strategic objective goals/programmes which were inclusive of two registration weekends. In 2016/17 election year, the budget is estimated to increase to R1.64 billion to R1.15 billion in 2017/18.
Summary of IEC budget in respect of Strategic Goals
|
Strategic Goals (R Million) |
2015/16 |
2016/17 |
2017/18 |
|
Strengthening governance, institutional excellence and professionalism and by enabling business processes, at all levels of the organisation. |
531.6 |
535.4 |
560.7 |
|
Achieving pre-eminence in the area of managing elections and referenda, including the strengthening of a cooperative relationship with political parties. |
763.0 |
907.7 |
458.3 |
|
Strengthening electoral democracy. |
287.7 |
198.9 |
130.9 |
|
Grand Total |
1 582.3 |
1 642.1 |
|
6.5 The Government Printing Works
Prof. AD Mbewu indicated that the GPW has not received any budget allocation from National Treasury via the DHA for the past three years. The GPW is self-financing from revenue generated by its various printing services which are used to procure and renovate buildings and machinery. The total sales increased from R692 million in 2012 to R781 million in 2014 and are anticipated to reach R977 million in 2015 and R1.45 billion in 2018.
6.6 The Standing Committee on Public Accounts (SCOPA)
The DHA met with SCOPA on 4 March 2015 to account for the 2013/14 audit outcome. SCOPA instructed the department to improve its internal controls, to implement stricter consequence management and to take appropriate and effective steps to ensure that audit issues are addressed. The SCOPA resolutions in this regard were not published at the time this report was prepared.
Prior Modifications to Audit Reports
The department embarked on a robust integrated approach to deal with prior year qualifications. The following interventions were undertaken in an effort to deal with the qualification as well as unqualified but materially misstated matters:
1. Top 1000 (comprising senior managers and heads of offices) meeting was convened in October 2014 to provide feedback on the audit outcome for 2013/14 financial year. This was intended to inform all relevant managers and clearly communicate the expectations on dealing with audit findings. Furthermore, the managers were expected to identify root causes for the qualification matters within their areas of operations and devise appropriate strategies to prevent re-occurrence;
2. The DG issued a circular in October 2014 to assist all managers from Assistant Directors upwards with the minimum intervention strategies that must be implemented;
3. Established asset management forum to track the progress of implementation of strategies;
4. Convened a meeting with the Auditor General to discuss their expectations on addressing qualification matters;
5. Organised a follow up meeting in February 2015 with the Top 1000 management forum to obtain status on the implementation of audit findings.
In addition to the various measures implemented, the Back to Basics project continued to progress as scheduled to monitor the implementation of the action plan and make modifications where necessary to the strategies aimed at addressing audit findings. In preparation of the year end Annual Financial Statements, the year-end plan was drafted and communicated to the relevant managers to inform them of reporting requirements and submission dates. The plan was tracked on a daily basis to assess the status and review of the relevant information that must be included in the Financial Statements.
Internal Control Unit
Internal control in the department has been receiving the payment vouchers from the supply chain management. Their duties were to perform verification checks on payment vouchers to:
• Check if the invoice amounts agree to the Order form.
• Confirm that expenditure approval was done by a relevant official at the relevant position.
• Recalculate the correspondence of invoice to the order quantity.
• Verify that all the supporting documents to the transaction are attached.
With all the above having been done, if the payment voucher does not meet the payment requirements, the voucher is then sent back to Supply Chain management as a dispute for rectification by the supplier. If the Payment voucher meets the requirement, is then stamped, signed and sent to Payment unit for capturing and final authorisation on BAS and LOGIS.
7. COMMITTEE’S KEY FINDINGS
In addition to findings raised in the rest of the report; the following specific findings emerged from the various sources including from the discussions of the Portfolio Committee on Home Affairs with the DHA, IEC and GPW.
7.1 Issues outstanding from the 2013/14 Budget Review and Recommendation Report
7.1.1. In terms of regional integration, prioritise the infrastructure and staffing issues as well as the rolling out of one-stop-border posts to other busy ports of entry.
7.1.2. Ensure that the DHA addresses the issues raised by the Auditor General for 2013/14, in particular the relations with DIRCO and strive towards a clean administration.
7.1.3. Encourage programmes and initiatives in order to reduce tensions between locals and foreign nationals.
7.1.4. The Electoral Commission should address the findings of the AG in order to return to a clean audit and improve governance.
7.2. The Department of Home Affairs
7.2.1. The Portfolio Committee on Home Affairs welcomes an improvement in the audit opinion of the DHA from a disclaimer to a qualification but encourages striving towards a clean audit.
7.2.2. The Committee believes that the MOU between DHA and DIRCO will assist in achieving a clean audit.
7.2.3. The DHA is closing the Late Registration of Births in December 2015, however, there would be more stringent measures for those who want to register births after 30 days.
7.2.4. Keeping of accurate documents records was an ongoing problem at the DHA.
7.2.5. The Committee appreciated the initiative to have applications for Smart ID Card at banks; however, there were concerns with the security of personal information at the Banks and the South African Post Office.
7.2.6. There are Provincial Managers that are in long standing acting capacity, in some provinces.
7.2.7. There is underfunding for the goods and services, in some Provinces, particularly for vehicles.
7.2.8. Provinces did not meet the 30 days prescribed for payment for some services providers.
7.2.9. The Committee welcomes the establishment of Visa Facilitation Service Offices abroad, such as India, Nigeria and China.
7.3. The Government Printing Works
7.3.1. The committee noted that the GPW has received clean audit opinion from the Auditor-General.
7.3.2. The GPW is striving to secure more work from the African states
7.3.3. The E-Gazette is being introduced.
7.3.4. There is a challenge in retaining highly skilled staff.
7.4. Electoral Commission
7.1. The Committee expressed a concern about voter registration and the need for innovative and effective voter education and registration.
7.2. The Committee noted that the Riverside Office Park Lease Agreement was still the subject of legal proceedings.
8. RECOMMENDATIONS
Based on the oversight and engagement with the Department of Home Affairs (DHA), the Electoral Commission (IEC) and the Government Printing Works (GPW), the Portfolio Committee on Home Affairs recommends that the Minister of Home Affairs and its entities consider the following recommendations:
8.1. The Department of Home Affairs
8.1.1 Address the overdue audit findings and outstanding issues from the previous BRRR report raised in 7.1. above.
8.1.2. Expand awareness by the public of the closing of current Late Registration of Births in December 2015, and ensure that staff are trained in time to deal with the more stringent measures being introduced.
8.1.3. Report before the end of the 2015/16 financial year on progress made on arrangements to source alternative network providers to SITA.
8.1.4. Ensure stringent enforcement of standard operating procedures to improve recording of performance information.
8.1.5. Endeavour that all provincial manager posts are filled in a permanent basis.
8.1.6. Report on coordination and collaboration with other government departments in preparing for the roll out of the Border Management Agency by the end of the first quarter of 2016/17.
8.1.7. Consider the need to address human resource shortages by filling funded vacant posts as a matter of urgency across provinces.
8.1.8. Employ an adequate number of inspectorate to all ports of entry.
8.1.9. Report to the Committee on the recommendations of the Inter Ministerial Committee on Visa Regulations.
8.1.10. Expand the establishment of Visa Facilitation Services (VFS) for travellers to South Africa as required.
8.1.11. Increase funding to prioritise the completion of the IT system modernisation programme.
8.2. The Government Printing Works
8.2.1. Continue with arrangements that allow flexibility to employ suitably skilled staff.
8.3. Electoral Commission
8.3.1. The Electoral Commission should address the findings of the AG.
8.3.2. Alternative and more proactive measures are needed to ensure broader education and actual voter registration.
8.3.3. The IEC to report on voter registration during the first quarter of 2016.
Report to be considered.
A
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