1. PRESENTATION TO THE PORTFOLIO COMMITTEE – EXPENDITURE AS AT 31 MARCH 2013
18 JUNE 2013

2. CONTENTS Introduction Expenditure as at 31 March 2013:
Per Programme – high level
Per Economic classification
Per Sub-Programme
Per Province

3. INTRODUCTION
The presentation will cover the expenditure against the budget as at 31 March 2013 as per the Annual Financial Statements submitted to the Auditor General on the 31st of May 2013.
In earlier presentations to the Portfolio Committee and in the Strategic Plan as presented, the Department indicated that it had established a Trading Entity. The purpose of the Trading Entity was for the Department to retain the funds from producing of face value documents and then use it to cover the production costs of the documents. This applied to Civic and Immigration Services Revenue.
The approval obtained from National Treasury was effective from 2011/12 financial year but the Department deferred the operations of the Trading Entity to the 2012/13 financial year and in agree to the postponement, the National Treasury granted the Department additional funds for the printing of the face value documents, passports specifically.

4. INTRODUCTION (CONT…)
In operationalising the Trading Entity, the Department liaised with National Treasury on the expenditure items that should be covered from the Trading Entity Revenue. The confirmation obtained from National Treasury made provision of the direct expenditure incurred by the Department in producing the face value documentation. All other costs e.g. rental of office space, compensation of employees, etc. will form part of the VOTE as funds were appropriated.
In discussing the matter with the Auditor-General (AG), a number of challenges arose. For example, in the view of the AG, all expenditure line items should form part of the Trading Entity. This will then leave the Department only with Administrative Expenditure. Also, AG wanted the Department to account for revenue as a sale of service instead of sale of goods. This prosed a significant challenge to the Department as the Department did not have adequate systems to account for revenue as a sale of service.

5. National Treasury was then consulted and it was agreed that:
INTRODUCTION (CONT…)
In short, the Trading Entity was facing an unfavourable audit opinion which would have an impact on the audit opinion of the VOTE.
National Treasury was then consulted and it was agreed that:
The Trading Entity be deferred for at least another 3 years
During the 3 years, research should be conducted to find the appropriate vehicle for the Department to achieve the ‘self funding’ objective
The over-expenditure as a results of the Trading Entity expenditure will be supported by National Treasury
This therefore led to the Department overspending on the VOTE.
The revenue collected for the year under review amounts to R687m, which will be paid to the National Revenue Fund.

6. EXPENDITURE BEFORE TRADING ACCOUNT Adjusted Appropriation
Per Programme
Adjusted Appropriation
Actual
Expenditure
Variance
R'000 %
Administration Support Services
1,601,803
1,461,555
91.2%
140,248
Services to Citizens
2,895,195
2,894,803
100.0%
392
Immigration Services
746,890
746,888 2
Total
5,243,888
5,103,246
97.3%
140,642
Note:
This represents the budgeted expenditure before the Trading Entity expenditure was taken into account.

7. EXPENDITURE AS AT 31 MARCH 2013 – PER PROGRAMME
Adjusted Budget Allocation
Actual Expenditure
% Budget spent
Amount Available
R'000
Administration Support Services
1,616,723
1,476,591
91.3%
140,132
Services to Citizens
2,951,269
3,177,492
107.7%
(226,223)
Immigration Services
675,896
750,199
111.0%
(74,303)
Total
5,243,888
5,404,282
103.1%
(160,394)
NOTE:
Detailed explanations per programme on next slide.
The main reason for the over spending on the vote is due to the postponement of the implementation of the Trading Entity as explained above.

8. EXPENDITURE AS AT 31 MARCH 2013 – PER ECONOMIC CLASSIFICATION
Description
Adjusted Budget Allocation
Actual Expenditure
% Budget spent
Amount Available
R'000
CURRENT
4,121,080
4,319,349
104.8%
(198,269)
Compensation of Employees
2,224,235
2,179,593
98.0%
44,642
Goods and Services
1,896,845
2,139,756
112.8%
(242,911)
TRANSFERS AND SUBSIDIES
980,462
980,179
100.0%
283
Provinces and municipalities
857
856
99.9% 1
Departmental agencies and accounts
967,219 –
Households
12,386
12,104
97.7%
282
PAYMENT OF CAPITAL ASSETS
141,988
104,396
73.5%
37,592
Machinery and equipment
119,999
96,753
80.6%
23,246
Software and intangible assets
21,989
7,643
34.8%
14,346
PAYMENT FOR FINANCIAL ASSETS
358
GRAND TOTAL
5,243,888
5,404,282
103.1%
(160,394)

9. EXPENDITURE AS AT 31 MAY 2013 – PER PROGRAMME
The expenditure at the end of March 2013 is 103.1% against the linear projections of 100.0%. During the year under review, the Department overspent its allocation by 3,1% (R160 million), however, considering that the unspent funds in Programme 1 (R140 million) represents earmarked funds for DHA IT Modernisation, the department has overspent its budget by 6% (R301 million). This overspending is due to the non-implementation of the Trading Entity. Expenditure in respect of Inv:Sta&Prnt: Government Printer, Courier Services and Cash in Transit which was allocated to the Trading account was journalised back into the vote creating an overspending.
Programme One: Administration – Spending at the end of March 2013 is 91.3% which is lower than the linear projection of 100.0% and can mainly be attributed to:
Delays in the spending against the Modernisation Information System (WAIO) allocation. In April 2013, the Department requested a roll over of the funds but due to technical over expenditure, the roll over request was not further considered.

10. EXPENDITURE AS AT 31 MAY 2013 – PER ECONOMIC CLASSIFICATION
Programme Two: Citizen Affairs - Spending at the end of March 2013 is 107.7% and can be attributed to the non-implementation of the Trading Entity as discussed above.
Programme Three: Immigration Affairs - Spending at the end of March 2013 is 111.0% which is 11% higher than the linear projections. There are three cost centres that overspent namely:
Deportation
APP
Transportation of Immigration Officers
The non-implementation of the Trading Entity which also had an impact on the overspending.

11. Adjusted Budget Allocation
EXPENDITURE AS AT 31 MAY 2013
PER SUB-PROGRAMME
Description
Adjusted Budget Allocation
Actual Expenditure
% Budget spent
Amount Available
R'000
ADMINISTRATION SUPPORT SERVICES
1,616,723
1,476,591
91.3%
140,132
Ministry
26,633
100.0% –
Management Support Services
107,681
Corporate Services
681,534
Transversal IT Management
473,360
333,228
70.4%
Office Accommodation
327,515
CITIZEN AFFAIRS
2,951,269
3,177,492
107.7%
(226,223)
Citizen Affairs Management
31,385
28,473
90.7%
2,912
Status Services
67,175
302,282
450.0%
(235,107)
Identification Services
242,817
242,549
99.9%
268
Access to Services
66,956
62,866
93.9%
4,090
Service Delivery to Provinces
1,575,726
1,574,112
1,614
Film and Publication Board
69,835
Government Printing Works
135,219
Electoral Commission
762,156
IMMIGRATION AFFAIRS
675,896
750,199
111.0%
(74,303)
Immigration Affairs Management
42,624
99,902
234.4%
(57,278)
Admission Services
293,487
319,780
109.0%
(26,293)
Immigration Services
271,867
271,866 1
Asylum Seekers
67,918
58,651
86.4%
9,267
GRAND TOTAL
5,243,888
5,404,282
103.1%
(160,394)

12. EXPENDITURE AS AT 31 MARCH 2013
PER SUB-PROGRAMME
BUDGET
EXP
% SPENT
AVAILABLE
SUB PROGRAMME
R'000 %
CORPORATE SERVICES
681,534
100% -
COMMUNICATION SERVICES
29,543
29,542 1
COUNTER CORRUPTION&SECURITY
145,783
145,782
FINANCE & SUPPLY CHAIN MAN
275,465
275,466 -1
HUMAN RESOURCES
104,309
LEARNING ACADEMY
126,434
126,435
MANAGEMENT SUPPORT SERVICES
107,681
AUDIT SERVICES
19,917
11,088
56%
8,829
DIRECTOR-GENERAL OFFICE
10,002
8,930
89%
1,072
INTERGOVERNMENTAL RELATIONS
8,714
8,211
94%
503
LEGAL SERVICES
53,579
66,351
124%
-12,772
POLICY, AND STRAT MANAGEMENT
15,469
13,102
85%
2,367

13. EXPENDITURE AS AT 31 MARCH 2013 PROGRAMME AND SUB PROGRAMME
PER SUB-PROGRAMME
BUDGET
EXP
% SPENT
AVAILABLE
PROGRAMME AND SUB PROGRAMME
R'000 %
IMMIGRATION AFFAIRS
675,896
750,198
111%
-74,302
ADMISSION SERVICES
293,487
319,780
109%
-26,293
2010 PROJECT MANAGEMENT - 71 0%
-71
AFCON 2013
14,985
9,351
62%
5,634
AIR&MARITIME PORT CONTR
231,179
266,512
115%
-35,333
PERMITS
47,323
43,846
93%
3,477
ASYLUM SEEKERS
67,918
58,650
86%
9,268
ASYLUM SEEKERS MANAGEMENT
55,911
49,451
88%
6,460
BOARDS AND COMMITTEES
12,007
9,199
77%
2,808
IMMIGRATION AFFAIRS MNGMNT
42,624
99,902
234%
-57,278
19,662
63,386
322%
-43,724
3,021
2,038
67%
983
CD:IMMIGRATION SUPPORT
664
DDG:IMMIGRATION SERVICES
8,760
6,370
73%
2,390
FOREIGN OFF COORD & SUPP
4,490
3,847
643
INSPECTORATE
2,256
3,250
144%
-994
3,549
20,976
591%
-17,427
ZIMBABWEANS PROJECT 35
-35
IMMIGRATION SERVICES
271,867
271,865
100% 2
FOREIGN MISSIONS
65,443
48,668
74%
16,775
6,667
6,349
95%
318
199,757
216,849
-17,092

14. EXPENDITURE AS AT 31 MARCH 2013 Adjusted Budget Allocation
PER PROVINCE
Description
Adjusted Budget Allocation
Actual Expenditure
% Budget spent
Amount Available
R'000
Service Delivery to Provinces
1,575,726
1,574,112
99.9%
1,614
Eastern Cape
210,907
207,846
98.5%
3,061
Free State
121,733
119,604
98.3%
2,129
Gauteng
334,857
337,001
100.6%
(2,144)
Kwazulu-Natal
187,120
186,417
99.6%
703
Limpopo
204,833
200,087
97.7%
4,746
Mpumalanga
155,458
164,388
105.7%
(8,930)
North West
143,494
144,360
(866)
Northern Cape
77,059
76,824
99.7%
235
Western Cape
140,265
137,585
98.1%
2,680

15. THANK YOU