ATC191017: Budget Review and Recommendation Report of the Portfolio Committee on Police on the Civilian Secretariat for Police Service (CSPS) 2018/19 Annual Report, dated 16 October 2019.

Police

BUDGET REVIEW AND RECOMMENDATION REPORT OF THE PORTFOLIO COMMITTEE ON POLICE ON THE CIVILIAN SECRETARIAT FOR POLICE SERVICE (CSPS) 2018/19 ANNUAL REPORT, DATED 16 OCTOBER 2019.

The Portfolio Committee on Police, having considered the financial and service delivery performance of the Civilian Secretariat for Police Services (CSPS) for the 2018/19 financial year, reports as follows:

INTRODUCTION

The Money Bills Procedures and Related Matters Amendment Act, (Act 9 of 2009), sets out the process that allows Parliament to make recommendations to the Minister of Finance to amend the budget of a national department. As part of this process, Portfolio Committees must compile Budgetary Review and Recommendation Reports (BRRRs) in October of each year, containing recommendations relating to funding allocations for departments and other institutions that account to them. The BRRRs are also source documents for the Standing Committee on Finance when it makes recommendations to the House of Parliament on the Medium-Term Budget Policy Statement (MTBPS). The annual review and analysis of performance (entailing both financial and non-financial performance indicators) forms part of this process.

The Committee is guided by its interest to promote effectiveness, efficiency and professional policing in South Africa. The mandate of the Committee is therefore to fulfil its constitutional function through the following means:

Pass legislation;
Scrutinise and oversee executive action and the organs of state including the South African Police Service (SAPS), the Civilian Secretariat for Police Service (CSPS), the Independent Police Investigative Directorate (IPID) and the Private Security Industry Regulatory Authority (PSIRA);
Facilitate public participation and involvement in the legislative and other processes; and
Engage, participate and oversee international treaties and protocols.

The Committee has overseen the performance of the Civilian Secretariat for Police Service (CSPS) through regular oversight meetings during the 2018/19 financial year and has tracked progress during the current financial year (2019/20). The Committee has considered quarterly expenditure reports for 2018/19.

The Committee was briefed on the annual performance for 2018/19 by the Department on 10 October 2019. The Committee also met with the Auditor-General of South Africa (AGSA) on the audit outcomes on 8 October 2019. The Committee has already considered and reported on the respective strategic plans and budget proposals of the Directorate for 2018/19. The National Forensic Oversight and Ethics Board did not submit its 2018/19 Annual Report to Parliament.

This report is structured as follows:

Section 1: Introduction. The section sets out the mandate of the Committee, the purpose of this report and the process to develop this report.
Section 2: Overview of key policy focus areas. The section includes an overview of the strategic goals of the Department, the outcomes of the Medium Term Strategic Framework (MTSF) and the Department’s contributions to the National Development Plan (NDP).
Section 3: Report of the Auditor General of South Africa. The section provides the key audit findings made by the Office of the AGSA.
Section 4: Governance. The section provides an overview of the governance structures of the Department.
Section 5: Financial overview 2018/19. The section provides an overview of the Departmental expenditure, including irregular expenditure, fruitless and wasteful expenditure and contingent liabilities.
Section 6: Performance overview 2018/19. The section provides an overview of Departmental performance on predetermined key performance indicators and targets.
Section 7: Committee observations. The section provides a summary of the observations made by the Committee during the 2018/19 Annual Report hearings.
Section 8: Recommendations and reporting requirements. The section contains the recommendations made by the Committee as well as written responses reports requested during the Annual Report hearings.
Section 9: Conclusion. The section contains concluding remarks of the Committee.

KEY STRATEGIC PRIORITIES

The strategic goals of the Department are:

A well advised and supported Minister for a service delivery oriented police service that is accountable.
Quality, timeous, evidence-based strategic research, policy advice and legislative support to the Minister
Deepened public participation in the fight against crime.
Enhanced accountability and transformation of the police service.

The work of the Department is guided by the following outcomes of the Medium Term Strategic Framework (MTSF):

Outcome 3: All people are and feel safe;
Outcome 12: An efficient, effective and development oriented public service; and
Outcome 14: Nation building and social cohesion.

The contribution of the Department to the National Development Plan focuses on the following areas:

Strengthening the Criminal Justice System;
Professionalisation of the Police Service; and
Demilitarisation of the police service.
Building safety using an integrated approach, and
Build community participation in safety

REPORT OF THE AUDITOR GENERAL OF SA (AGSA)

The CSPS received an unqualified opinion with no material findings (clean audit) in 2018/19. This the second consecutive year that the Department achieved the objective of an unqualified audit with no material findings.

The Department received a second consecutive unqualified opinion with no material findings (clean audit) in 2018/19. A clean audit means that the Department had:

Credible and reliable financial statements that are free of material misstatements;
Useful and reliable performance as measured against predetermined objectives; and
Compliance with key legislation.

In terms of matters of emphasis, the AG identified material underspending of the budget in that the Department materially underspent the budget by R1.365 million on Programme 1, R2.369 million on Programme 2 and R2.615 million on Programme 4.

The AG made no material findings on the reliability and usefulness of reported performance. Material misstatements were identified in the reported performance information of Programme 2: Intersectoral Coordination and Strategic Partnerships, but was corrected and as such, the AGSA did not raise a material finding thereon. This is a significant improvement from the nine material findings of the previous financial year.

The AGSA found no significant deficiencies in internal control mechanisms.

GOVERNANCE

The mandate of the Civilian Secretariat for Police Service is derived from Section 208 of the Constitution of the RSA,1996 and the Civilian Secretariat for Police Service Act, 2011. The broad mandate of the Civilian Secretariat for Police Service is to:

Provide the Minister with policy advice and research support.
Develop departmental policy through qualitative and evidenced-based research.
Provide civilian oversight of the police service through monitoring and evaluating overall police performance.
Mobilise role-players, stakeholders, and partners outside the department through engagements on crime prevention and other policing matters.

Based on the Department’s mandate, it is ideally placed to assist in the realisation of Vision 2030, to create a more professional police service in SA and to foster a strong community-policing platform through Community Safety Forums (CSFs) and Community Policing Forums (CPFs). An increased focus is placed on a holistic approach to crime fighting, seeing violent crime as a societal problem and not a ‘police problem’ alone.

The Department relies heavily on output performance targets as opposed to outcome performance targets. Throughout 2018/19, the Department entered into public-private partnerships, hosted several community outreach programmes and produced many reports. These are all measurable outputs that do not measure the outcomes and the impact on crime prevention or police conduct.

The Department has filled 140 of its 150 vacant posts by the end of the year under review, resulting in a vacancy rate of 6.67%. In terms of the status of the Employment Equity, of the total number of positions filled, persons with disabilities constituted 0,74% as there was only one person with a disability at the end of the financial year.

In terms of gender differences, 75 out of the total positions filled comprised of females, which translates into 56%, while 65 or 44% were males. Women occupied only 13 or 43.33% of the senior management positions within the department, while males occupied 17 or 56.67%.

FINANCIAL OVERVIEW 2018/19
1. Departmental expenditure

The Secretariat received a Final Appropriation of R131.219 million in the 2018/19 financial year, of which R123.865 million was spent. A material underspending of R7 335 million was recorded (94.4%), which is the same percentage expenditure of the previous financial year, in which 94.4% expenditure was realised. The unspent funds will be surrendered to the revenue fund.

Table 1: Appropriation statement 2018/19

Programme R’000	Adjusted Appropriation	Virement	Final appropriation	Actual Expenditure	Variance	% Spent
1. Administration	54 415	22	54 437	53 072	1 365	97.5%
2. Intersectoral Coordination and Strategic Partnerships	24 416	(71)	24 345	21 976	2 369	90.3%
3. Legislation and Policy Development	21 392	-	21 392	20 386	1 006	95.3%
4. Civilian Oversight, Monitoring and Evaluations	30 996	49	31 045	28 430	2 615	91.6%
Total	131 219	-	131 219	123 864	7 335	94.4%

Source: 2018/19 CSPS Annual Report

In terms of spending per Programme, the following can be noted –

The Intersectoral Coordination and Strategic Partnerships Programme recorded the largest underspending. The Programme had a Final Appropriation of R24.345 million, of which R21.976 million was spent at year-end (90.3%), leaving a variance of R2.369 million, despite a virement from the Programme.
The Civilian Oversight, Monitoring and Evaluations Programme had a Final Appropriation of R31.045 million in 2018/19, of which R28.430 million was spent at year-end (91.6%), leaving a variance of R2.615 million.
The Legislation and Policy Development Programme spent R20.386 million of its R21. 392 million (95.3%), leaving a variance of R1.006 million at year-end.
The Administration Programme had a Final Appropriation of R54.437 million in 2018/19, of which R53.072 million was spent (97.5%), leaving a variance of R1.365 million at year-end.

The Virement from Programme 2: Intersectoral Coordination and Strategic Partnerships of R1.667 million was mainly from Goods and Services and was to defray overspending on payment for capital assets in the other three programmes.

Spending on Compensation of employees (COE) is concerning. In 2018/19, the Department had a Final Appropriation for COE of R97.433 million, of which R91.446 million was spent at year-end (93.9%), leaving a variance of R5.987 million in unspent funds. The Department is labour-intensive and had a vacancy rate of 6.67% in 2018/19, yet performance remained similar to the previous financial year.

The Department did not incur any unauthorised expenditure during 2018/19, but has a large amount of historical unauthorised expenditure awaiting authorisation (R5.6 million) due to overspending of appropriated funds in 2015/16. The amount was restated in the current financial year. A letter was sent to National Treasury in March 2019 to request that the process be taken forward for authorisation of the amount by Parliament.

The Department has not incurred additional irregular expenditure in 2018/19, but the R39.305 million has not been condoned. The bulk of the irregular expenditure originated in 2014/15 up to 2016/17 on two contacts namely Wings/Naledi Travel Management and Routledge Modise for legal fees. A request for condonation was submitted to National Treasury in March 2019 and feedback is awaited.

The Department has not incurred fruitless and wasteful expenditure in the 2018/19 financial year, however the Department has historic fruitless and wasteful expenditure of R193 000, which relates to interest incurred for a delayed payment made to South African Revenue Service (SARS) due to the unavailability of computer systems. An amount of R30 000.00 from the previous financial year for DVDs paid but not delivered is still under investigation. The Department indicated that the unconfirmed fruitless and wasteful that originated in 2016/17 and 2017/18 is still under investigation and/or determination has not year been made although early indications do not confirm the possibility of fruitless and wasteful expenditure.

Expenditure per programme

Administration Programme

The Administration Programme received an Adjusted Appropriation of R54.4 million in the 2018/19 financial year of which R53.072 million was spent (97.5%), leaving a variance of R1.365 million at year-end. The percentage expenditure decreased from 98.7% in 2017/18 to 97.5% in 2018/19.

Intersectoral Coordination and Strategic Partnerships Programme

The Intersectoral Coordination and Strategic Partnerships Programme recorded the largest underspending. The Programme had a Final Appropriation of R24.345 million, of which R21.976 million was spent at year-end (90.3%), leaving a variance of R2.369 million, despite a virement from the Programme. The Programme only slight increased expenditure from 90.1% in 2017/18 to 90.3% in 2018/19.

Legislation and Policy Development Programme

The Legislation and Policy Development Programme spent R20.386 million of its R21. 392 million (95.3%), leaving a variance of R1.006 million at year-end. The Programme recorded expenditure of 95.3% in 2018/19, which is an improvement when compared to the 94.4% expenditure recorded in the 2017/18 financial year.

Civilian Oversight, Monitoring and Evaluation Programme

The Civilian Oversight, Monitoring and Evaluation Programme received an Adjusted Appropriation of R30.9 million and a Final appropriation of R31.045 million in 2018/19, of which R28.430 million was spent at year-end (91.6%), leaving a variance of R2.615 million. The 91.6% expenditure recorded in the 2017/18 financial year remains the same in the 2018/19 financial year.

6.Performance overview 2017/18

Overall performance

The overall performance of the Department declined in 2018/19 when compared to the previous financial year. In 2018/19, the Department achieved 78.1% of the predetermined targets against an 81.2% achievement on performance indicators in the 2017/18 financial year. Of the total 32 performance targets, the Department met its targets on 25 indicators and underperformed on seven indicators. The decline in performance is due to a significant decline in the performance of the Administration Programme, more specifically the Financial Administration sub-programme did not achieve any of its performance targets (0% achievement rate).

Administration Programme

The Administration Programme achieved three from eight predetermined targets during the 2018/19 financial year, which is an overall performance rate of 37.8%, which is a significant decline from the achievement rate of 77.7% in 2017/18 and 93.3% in 2016/17. While both performance and spending declined, there is a significant disparity, as the Programme spent 95% of its budget but only met 37.8% of its targets. There should be some alignment between performance and expenditure.

The significant decline in performance is ascribed to the fact that the Financial Administration sub-programme failed to achieve any of its performance targets. The targets were missed by a narrow margin –

100% of payments to creditors were not made in 30 days (Actual achievement was 98%);
100% of internal audit recommendations were not implemented (Actual achievement was 90%);
100% of external audit recommendations could not be implemented (actual achievement was 50%); and
95% of expenditure in relation to budget allocation was not realised (Actual achievement was 94%).

The Administration Programme had a Final Appropriation of R54.437 million in 2018/19, of which R53.072 million was spent (97.5%), leaving a variance of R1.365 million at year-end.

Human resource management

In 2018/19, the Department spent R91.446 million of its Final Appropriation of R124.864 million on Compensation of employees. This represents 73.2% of the total budget, which is an increase compared to the 70.32% of the previous financial year. At the end of March 2019, the Department had filled 140 of its 150 posts, which represents an overall vacancy rate of 6.67%. The Partnerships Programme had a vacancy rate of 16.6% and the Legislation and Policy Development Programme had a vacancy rate of 15.6%. Furthermore, the Department had 14 posts filled additional to the establishment

In the 2018/19 financial year, the Department had an overall turnover rate of 5%, which was most pronounced in the Highly Skilled Production (Levels 6-8) salary bands with a turnover rate of 9.68%.

Intersectoral Coordination and Strategic Partnerships Programme

The Programme achieved six of eight performance indicators, which is a 75% achievement on performance indicators - a decline when compared to the achievement rate of 86% in the previous financial year.

The Department achieved its target to sign two memoranda of Understanding (MOUs) to build safer communities. However, the Department provides very little details on these MOUs. One of them is with Aware!org to establish a formal partnership regarding the promotion of responsible alcohol trade and consumption in the fight against crime.

Policy Development and Legislation Programme

The Policy Development and Legislation Programme achieve 100% of its predetermined performance indicators in 2018/19. This is a significant improvement from previous years.

The Policy Development and Research sub-programme submitted two policies to the Minister for approval. One was the policy framework on the Single Police Service (SPS) that was approved by the Minister on the 26 March 2019. The purpose of the framework is to outline the parameters for integration, cooperation and collaboration of SAPS, Municipal Police Service (MPS), and traffic policing where relevant with the aim of improving uniformity, efficiency and effectiveness within the law enforcement value-chain. It is unclear what the other policy framework entailed.

The sub-programme indicated that two research reports on policing were approved by the Secretary during the 2018/19 financial year. No details on the reports were provided in the 2018/19 Annual Report of the Department. Similarly, no details are provided for the bills and regulations submitted to the Minister during the 2018/19 financial year.

The Legislation and Policy Development Programme spent R20.386 million of its R21. 392 million (95.3%), leaving a variance of R1.006 million at year-end.

Civilian Oversight, Monitoring and Evaluation Programme

The Civilian Oversight, Monitoring and Evaluation Programme achieved 11 from 11 predetermined targets, which is a performance rate of 100%. This is an improvement from the 85% achievement rate of the previous financial year. This is the most crucial Programme of the Department, as it directly evaluates police performance and conduct.

The Police Performance, Conduct and Compliance Monitoring sub-programme achieved 100% of its predetermined performance targets in 2018/19. The Secretary approved the following -

A Police Station Oversight Report
A Police Station Service Delivery Trend Analysis Reports
Two Assessment Reports on Complaints Management
Two reports on SAPS implementation of IPID Recommendations
Two Compliance Reports on the implementation of the Domestic Violence Act by the SAPS
A report in the implementation of and compliance with legislation and policies
An assessment report on Litigation Management
Two monitoring reports on police stations’ implementation of the school safety protocol

The Policy and Programme Evaluations sub-programme produced an assessment report on the functionality of CSFs and a customer satisfaction survey report in the 2018/19 financial year.

The Civilian Oversight, Monitoring and Evaluations Programme had a Final Appropriation of R31.045 million in 2018/19, of which R28.430 million was spent at year-end (91.6%), leaving a variance of R2.615 million.

Office of the DPCI Judge sub-programme

The Office of the Directorate for Priority Crime Investigations (DPCI) Judge was established according to section 17L of the South African Police Service (SAPS) Act, 1995 (Act 68 of 1995) to provide for a complaints mechanism to deal with alleged abuses of power by members of the DPCI as well as alleged interferences with the work of DPCI members. As such, the Office of the DPCI Judge provides an important oversight mechanism for the conduct of the DPCI as well as the independence of the Directorate.

The Office of the DPCI Judge is funded through monies appropriated by Parliament in the budget of the Department. In 2018/19, the sub-programme had a Final Appropriation of R5.139 million in 2018/19, of which R4.032 million was spent thus leaving a variance of R1.107 million. Although it forms a sub-programme of the Department, it reports separately to Parliament and submits an Annual Report.

COMMITTEE OBSERVATIONS

The Committee made the following observations:

AGSA audit opinion: The Committee congratulated the Department for its achievement of a clean audit. The Committee noted that there were some challenges with respect to performance, but was generally satisfied with the unqualified audit with material findings. The Committee encouraged the Department to build on the findings and maintain it.

Budget: The Committee noted the material underspending of the budget by R1.365 million on Programme 1, R2.369 million on Programme 2 and R2.615 million on Programme 4. At the end of the 2018/19 financial year. recorded at the end of the 2017/18 financial year. The department spent R123.864 million or 94.4% of its allocated budget of R131.219 million.

The department underspent its budget by R7.355 million or 5.6% which is 0.5% less compared to the previous year as the underspending was 5.1%. The underspending was mainly due to vacant funded posts.

Irregular expenditure: The Committee noted that the Department did not incur irregular expenditure during the 2018/19 financial year, but was carrying a historic amount of R39.3 million that was incurred in the 2014/15 up to 2016/17 financial years. The two contracts were for Wings/Naledi Travel Management and Routledge Modise for legal fees and requires condonation from the National Treasury. A request for condonation was submitted to National Treasury in March 2019 and feedback is awaited.

Support model – DNA Board and DPCI Judge: The Committee noted that the DPCI Judge submitted its Annual Report, but the DNA Board did not submit its Annual Report for consideration by the Committee. The Department responded by noting that both the DPCI Judge and DNA Board underspent allocated funds for the financial year. The money is ring-fenced, but they did not make appointments and the funds were surrendered to National Treasury.

Filling of vacancies: The Committee noted that the filling of vacancies was below the 10% requirement, but that it was still high. The Committee did not accept the question of office accommodation as an excuse as all government departments has accommodation problems.

The Department was urged to fill the outstanding vacancies. In its response the Department invited the Committee to visit its offices to establish the seriousness of the office accommodation.

Management and Gender balance: The Committee noted that while the employment of females in the Department was at 56%, the number of women in management (13 or 43.33%) was lower than that of men (17 or 56.67%) and urged the Department to change this. The Committee was also not happy that only 0.47% of people with disabilities have been employed. The Department responded that from its view it was doing very well since it was established as it only had 30% representivity of women.

Office Accommodation: The Committee noted that the Department intended moving to a new building during the previous financial year. The Department responded that they would have moved to the Department of Arts and Culture building, but with the change in government after the elections and the merging of departments, they were informed that the space was no longer available and have to start from scratch. As a result of the overcrowding in the space, the morale of the staff is not good.

School Safety Protocol: The Committee was aware of the School Safety Protocol report which was compiled after the Department visited and researched 30 schools to consider safety at school. Given the nature of school violence, the Committee wanted to know if the report was shared with the SAPS and for the Committee to receive a copy. The Department noted that the School safety protocol was signed in 2011 by the Ministers of Police and Basic Education. There are however challenges as not all schools have safety plans and there are a number of schools not linked to the police stations.

Community Police Forums: The Committee questioned what the policy of the CPFs were around neighbourhood watches given the emerging disputes between neighbourhood watches and CPFs. The Department noted that they were trying to resolve it and they had a draft policy approved by MINMEC which talks about CPFs being migrated to the CSPS. It could not happen until the SAPS Act is amended and it has to come with the funding we are busy with the assessment on the funding implications for the SAPS Act review

CPF Training: The Committee questioned what training the CPFs have received as some CPFs have not been trained and this causes problems for the relationship between the SAPS and the communities they police. The Department responded by noting that for the CPF training the department was still in the process of developing the training manual. According to the Department, there are people who have not gone beyond grade 7 who have not been accommodated in the course manual developed by WITS University. This is no being changed as many of the people in CPFs in poorer communities are not well educated. The Department approached SASSETA and asked for guidance on the curriculum and they were told to do a call for proposals. There was no response after 10 months and they then formulated a programme and pitched at a high level. The SAPS, CSPS and WITS evaluated the training. The SASSETA reported that it will only be paying of people for matric plus, and the Department should take responsibility for the rest. The Department has invited all the HODs, CPF Boards and Provincial Secretariat on 5/6 November and they will indicate what the training content should be.

Criminal Law (Forensic Procedures) Amendment Bill: The Committee noted that the Minister must ensure that the Criminal Law Forensic Procedures Amendment Bill must be tabled in Parliament for processing as a matter of urgency.

Single Police Service: The Committee questioned the Department on the responses of the Metro Police Chiefs to the Single Police Service policy and wanted to know if there were any objections and what the progress in the implementation of the policy was.

Irregular expenditure investigation: The Committee noted that an investigation in the irregular expenditure was undertaken into the companies Wings-Naledi Travel and Routledge Modise attorneys. The Committee wanted to know what the progress of the investigation was and whether criminality has been established. The Department noted that they have applied to National Treasury to authorise the expenditure and also condonation by Parliament. The investigation started after the person had already left and the Wings-Naledi matter was reported to the Hawks and there is a criminal investigation underway.

Station oversight visits: The Committee was concerned about the fact that the Department has undertaken so few station visits and wanted the Department to make available the station reports. The Department indicated that they develop after visiting all the police stations. The approach is that a report for every police station, we having an agreement and will be focussing on the top thirty stations nationally and provincially. There are oversight protocols and have guidelines together with a national monitoring tool.

COMMITTEE RECOMMENDATIONS AND REPORTING REQUIREMENTS

Recommendations

The Committee recommends the following:

The Department should continue its performance regarding the clean audit opinion of the AGSA and maintain it for the 2019/20 financial year.
The Department should fill vacancies in order to address and mitigate material underspending in the 2019/20 financial year.
The Department should spend its allocated budget in all programmes and fill all vacant posts on the staff establishment.
The Department should address the challenges regarding inadequate office space. The Department should engage the National Treasury to reallocate the funds for office accommodation to the Department.
The Department should fast-track the condonation of the historical Irregular Expenditure by the National Treasury.
The Department should finalise the internal investigation into the Wing-Naledi contract and make the report available to the Committee.
The Executive Authority should table the Annual report of the DNA Board in Parliament.
The DPCI Judge and the DNA Board should fill all its vacancies and avoid having to send funds back to the National Treasury.
The Department should make the Schools Safety protocol available to the Committee and the SAPS monitor its implementation.
The Department should finalise the training module for Community Police Forums and implement the training together with the SAPS for all CPFs.
The Single Police Service Policy must be made available to the Committee and an implementation plan should be developed after the SAPS Act is amended.
The Department must make its report of station visits available to the Committee.

CONCLUSION

The Civilian Secretariat for Police Services is a critical department that has a responsibility to ensure that police services comply with its service delivery obligations. Its role in policy development and the monitoring of relevant policies cannot be over-stated. The need for the Department to overhaul the role, function and training of community police forums is critical and the should as a matter of urgency negotiate the mandate and budget form the SAPS to prepare for its new mandate. The Committee congratulates the Department of attaining a clean audit for the second year in a row.

Report to be considered.

Documents

No related documents

ATC191017: Budget Review and Recommendation Report of the Portfolio Committee on Police on the Civilian Secretariat for Police Service (CSPS) 2018/19 Annual Report, dated 16 October 2019.

Police

6.Performance overview 2017/18

Documents

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