1. BRIEFING TO THE PORTFOLIO COMMITTEE ON POLICE 25 APRIL 2013 STRATEGIC PLAN 2013/14 TO 2017/18 1

2. DELEGATION NamePosition Mr. TO BopelaChairperson General A DramatCouncil Member Mr. MS ChaukeDirector Mr. PP MthethwaDeputy Director – Law Enforcement Mr. MP MongwenyanaDeputy Director – Finance and Administration Mr. I RaliomaSenior Manager – Human Capital Ms. S ZumaCommunications Manager Ms. B MositoManagement Accountant Ms. U MelletManager Finance 2 2

3. PART A – Strategic Context –Our Mandate –Situational Analysis –Strategic Focus PART B – Strategic Objectives –Strategic Objectives PRESENTATION OVERVIEW 3

4. Part C – Annual Performance Plan (APP) –Programme 1: Law Enforcement –Programme 2: Finance and Administration –Programme 3: Communications and Training –Programme 4: Corporate Services Part D – Medium Term Budget (MTEF) – Revenue Budget – Budget per Programme – Capital Budget PRESENTATION OVERVIEW 4

5. PSIRA BUSINESS STRATEGY SUMMARY OF THE MANDATE Promote a legitimate industry subject to the Constitution and other laws of the Republic Ensure the industry act in public and national interest Determine and enforce minimum occupational conduct by service providers Ensure a transparent, fair, objective and timeous registration process Ensure compliance through active monitoring and investigation of service providers Promote services that respond to the need of users and of the community 5 5

6. SITUATIONAL ANALYSIS PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY SITUATIONAL ANALYSIS SOME KEY EXTERNAL CHALLENGES Unregistered security companies and operators Increasing risk to the safety and security of South Africa and its citizens posed by criminal elements within the industry Exploitation of labour within the security industry Need to provide improved access to PSIRA whilst improving service delivery to stakeholders in accordance with the principles of Batho Pele Rapid growth and expansion of the security industry requiring both a broader regulatory geographic footprint Ignorance of the law by the end-users or consumers Legal challenges regarding the annual fees 6

7. SITUATIONAL ANALYSIS PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY SITUATIONAL ANALYSIS SOME KEY INTERNAL CHALLENGES Funding of the operation of PSIRA to ensure effective service delivery Staff morale that has not improved to satisfaction Staff turnover Review of business controls Lack of more resources to ensure effective coverage and enforcement 7

8. SITUATIONAL ANALYSIS PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY STRATEGIC FOCUS SOME KEY FOCUS AREAS –Effective Regulations –Revenue capacity/collection –Expanding Footprint 8 8

9. SITUATIONAL ANALYSIS PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY PART B STRATEGIC OBJECTIVES 9

10. STRATEGIC GOALS AND OBJECTIVES Objective 1 To ensure excellent service delivery in the security industry To enable effective compliance and enforcement of PSIRA legislation in order to achieve behavioural changes in the industry Objective 2 Ensure effective financial management and optimal revenue management To be financially stable, sustainable and be able to increase revenue and decrease expenditure 10

11. STRATEGIC GOALS AND OBJECTIVES Objective 3 Efficient and Effective Processes and Systems To ensure that PSIRA has cutting edge technology Objective 4 Stakeholder and Customer relationship management To ensure effective communication with key stakeholders and provide excellent standard of private security training 11

12. STRATEGIC GOALS AND OBJECTIVES Objective 5 Industry Stewardship To ensure that PSIRA is a centre of excellence in private security research Objective 6 To ensure that PSIRA has competent and skilled employees that are able to execute their tasks effectively To ensure that PSIRA has competent, ethical and skilled workforce 12

13. PART C ANNUAL PERFORMANCE PLAN 13

14. PROGRAMME 1: LAW ENFORCEMENT Purpose The purpose of this programme is to enable effective compliance and enforcement of PSIRA legislation in order to achieve behavioural changes in the industry Outcomes Outcome 1: PSIRA should be an excellent regulator and accessible to all Outcome 2: A legitimate private security industry characterised by professionalism, transparency and trustworthiness Outcome 3: Firearms in the private security industry should be fully accounted for Outcome 4: PSIRA should process cases efficiently 14

15. ANNUAL PERFORMANCE PLAN 2013-14 PROGRAMME 1: LAW ENFORCEMENT 15

16. ANNUAL PERFORMANCE PLAN 2013-14 PROGRAMME 1: LAW ENFORCEMENT 16

17. ANNUAL PERFORMANCE PLAN 2013-14 PROGRAMME 1: LAW ENFORCEMENT 17

18. PROGRAMME 2 : FINANCE AND ADMINISTRATION Purpose The main purpose of this program is: To be a financially stable and sustainable organisation (increase revenue, decrease costs, and achieve at least breakeven) To ensure that adequate processes and systems are in place to effectively carry out the mandate of PSIRA 18

19. PROGRAMME 2 : FINANCE AND ADMINISTRATION This programme consists of the following components: Finance and Administration This component provides revenue management, effective financial management, and auxiliary services to the Authority. Business Information and Technology Services rendered by IT to the Authority include, development and maintenance of enterprise solutions as well as support to users.. 19

20. PROGRAMME 2 : FINANCE AND ADMINISTRATION Supply Chain Management This component administers acquisition of goods and services in line with the Public Finance Management Act as well as preferential procurement regulations. Internal audit This component reports to the Audit Committee and the Accounting officer. It provides internal audit service such as compliance and performance audits based on the approved Internal Audit Plan. 20

21. PROGRAMME 2 : FINANCE AND ADMINISTRATION Outcomes Outcome 1: PSIRA is a financially sustainable entity Outcome 2: PSIRA has cutting edge technology 21

22. ANNUAL PERFORMANCE PLAN 2013-14 PROGRAMME 2: FINANCE AND ADMINISTRATION 22

23. ANNUAL PERFORMANCE PLAN 2013-14 PROGRAMME 2: FINANCE AND ADMINISTRATION 23

24. ANNUAL PERFORMANCE PLAN 2013-14 PROGRAMME 2: FINANCE AND ADMINISTRATION 24

25. ANNUAL PERFORMANCE PLAN 2013-14 PROGRAMME 2: FINANCE AND ADMINISTRATION 25

26. ANNUAL PERFORMANCE PLAN 2013-14 SUB- PROGRAMME 2: BUSINESS INFORMATION TECHNOLOGY 26

27. ANNUAL PERFORMANCE PLAN 2013-14 SUB- PROGRAMME 2 : BUSINESS INFORMATION TECHNOLOGY 27

28. PROGRAMME 3 : COMMUNICATIONS AND TRAINING Purpose The main purpose of this program is: To ensure meaningful and fruitful engagement with all stakeholders To ensure full understanding of the industry and to begin to respond to industry needs and challenges, so as to be recognised as “the industry experts” 28

29. PROGRAMME 3 : COMMUNICATIONS AND TRAINING This program consists of the following components: Communication and Marketing This component provides effective communication and liaison between the Authority and its key stakeholders such as the industry, media, organs of states and users of private security services. Training This component oversees training of prospective and registered security service providers. Its objective is to promote high standards in the training of security service providers and prospective security service providers 29

30. PROGRAMME 3 : COMMUNICATIONS AND TRAINING Research The Authority has planned to establish a Research component. This component will undertake research into the private security industry over the medium term. Research output will be used to strengthen the regulatory programmes. 30

31. PROGRAMME 3: COMMUNICATIONS AND TRAINING Outcomes Outcome 1: The standard of private security training is improved Outcome 2: PSIRA is a centre of excellence in private security research 31

32. ANNUAL PERFORMANCE PLAN 2013-14 PROGRAMME 3: COMMUNICATIONS AND TRAINING 32

33. ANNUAL PERFORMANCE PLAN 2013-14 PROGRAMME 3: COMMUNICATIONS AND TRAINING 33

34. ANNUAL PERFORMANCE PLAN 2013-14 PROGRAMME 3: COMMUNICATIONS AND TRAINING 34

35. ANNUAL PERFORMANCE PLAN 2013-14 PROGRAMME 3: COMMUNICATIONS AND TRAINING 35

36. ANNUAL PERFORMANCE PLAN 2013-14 PROGRAMME 3: COMMUNICATIONS AND TRAINING 36

37. PROGRAMME 4 : CORPORATE SERVICES Purpose The purpose of this programme is : To ensure that PSIRA has competent and skilled employees that are able to execute their tasks effectively To ensure that the authority has a culture of learning embracing excellence that supports our vision and strategy 37

38. PROGRAMME 4 : CORPORATE SERVICES Outcomes Outcome 1: Learning and development Outcome 2: Monitoring and evaluation of employee performance Outcome 3: Review and improve organization processes Outcome 4: Conducive organizational climate Outcome 5: Employment equity 38

39. ANNUAL PERFORMANCE PLAN 2013-14 PROGRAMME 4: CORPORATE SERVICES 39

40. ANNUAL PERFORMANCE PLAN 2013-14 PROGRAMME 4: CORPORATE SERVICES 40

41. ANNUAL PERFORMANCE PLAN 2013-14 PROGRAMME 4: CORPORATE SERVICES 41

42. PART D MEDIUM TERM BUDGET 42

43. OVERVIEW OF THE PRESENTATION Highlights and Lowlights for 2012/13 FY Trend analysis Overview of 2013/14 MTEF MTEF per Programme Revenue estimates Capital Investment Budget Emerging risks 43

44. HIGHLIGHTS 44 Items2012 (Actual) R’ mil 2013 (Projected) R’ mil % Variance Total Revenue12916427 % Annual Fees 7711549 % Training Fees16.718.511 % Fines10.75.4-50 % Sales of Goods & Services6.17.828 % Registration Fees4.85.821 % Infrastructure 1.9 2.321% Other 11.8 9.2-22 %

45. LOWLIGHTS Legal action – 2011 Annual Fee Regulations Going concern challenges Projected deficit of R1 million 45

46. TREND ANALYSIS: Revenue v/s Expenditure 46

47. OVERVIEW OF THE MTEF Factors influencing revenue growth – Annual review of fees –Optimisation of revenue generation –Minimise Bad Debts –Awareness campaigns on the role of PSIRA 47

48. REVENUE ESTIMATES 48

49. OVERVIEW OF THE MTEF Factors influencing expenditure growth –Corporate Identity Rollout –Development of an Integrated Business Information System –Building Law Enforcement capacity (inspectors and professional staff) –Stakeholder engagement initiatives 49

50. MTEF PER PROGRAMME Programmes 2013/142014/152015/16Total% Programme 1: Law Enforcement68 388 54074 010 62279 662 630222 061 79242% Programme 2 : Finance and Administration 47 002 052 45 950 656 47 578 624140 531 33226% Programme 3: Communication and Training 25 038 087 26 266 927 30 232 48481 537 49815% Programme 4:Corporate Services 25 609 604 30 572 008 33 126 67089 308 28217% Total expenditure estimates 166 038 283 176 800 213 190 600 408533 438 904100% 50

51. CAPITAL INVESTMENT BUDGET Asset category2013/142014/152015/16 Motor vehicles350 00000 Computer equipment2 461 127207 000324 000 Software368 035218 035 Office equipment372 50000 Office furniture1 367 50061 83676 404 Leasehold improvements115 00000 Total capital expenditure5 034 162486 875618 439 51

52. RISKS List of risks –Litigation by Security Industry Alliance (SIA) –Order to set aside 2011 Annual Fee Regulations –Risk to achieving planned objectives Risk mitigation –Review funding model – Alternative revenue streams 52

53. QUESTIONS 53

54. THANK YOU 54