CRITICAL ASSESSMENT OF MECHANISMS USED

TO MEASURE PERFORMANCE IN THE SOUTH

AFRICAN POLICE SERVICE

Presenter: Nompumelelo Radebe | Public Finance : Justice and Protection Services, National Treasury | 8 February 2017

SAPS RESEARCH COLLOQUIUM – CSIR ICC

Introduction

There is no one-to-one link between the budget and expenditure of the South African Police Service (SAPS) and its performance over the last 5

financial years.

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Presentation Outline

• Overview of Resource Allocation in South

Africa

• The Case of SAPS – Budget vs Performance

over the last 5 financial years

• Key Budget Issues for Consideration over the

2017 MTEF

3

RESOURCE ALLOCATION

IN SOUTH AFRICA

4

Purpose of the Budget

3

The budget is a key statement of the policy of government. It is the process through which government makes choices about competing priorities that need to be funded for services to be

delivered.

“To budget is to choose”

Key Budget Reforms in South

Africa

Measurable

objectives

Improving

operational &

allocative

efficiency

Publication of Quarterly

Performance Information

Performance Information

Handbook and Tool

Budget Programme

Structure Guidelines

Framework for Managing Programme

Performance Information

Annual Reports

tabled

Framework for Strategic Plans and

Annual Performance Plans

Linking

performance with budgets

Estimates of National Expenditure and Provincial

Budget Statements 1 & 2

Public Finance

Management Act

6

Functional approach to budgeting

Medium Term

Expenditure Framework

Fiscal Framework and Division of Revenue

7

Policy

discussions at

Cabinet

Debt Servicing

Contingency reserve

Available

Expenditure

National 48%

Provincial 43%

Local 9%

2015/16

Functional Allocation of the 2016/17 Budget

8 NB: Consolidated Govt. Expenditure – R1.46 trillion, R816

billion for Social Services

Medium Term Expenditure Framework (MTEF)

Process

• Process through which resource allocation takes place in South

Africa.

• Programme and subprogramme budgets are linked to performance

• National Treasury and DPME work with institutions through

performance dialogues to refine and agree on the list of core

performance indicators that will be used throughout the budget

decision making process.

• Institutions are required to submit MTEF budget detailing:

– Report against past performance (financial and non-financial)

– Indicate how baseline reductions and the reprioritisation of funds

impacts on the achievement of outputs (performance) for the MTEF

period

– Show where performance can be enhanced at no extra cost

– Baseline analysis

9

Budget Technical Structures and Decision Making

Cabinet

Budget bilaterals

Ministers’ Committee on the Budget (MINCOMBUD)

Medium Term Expenditure Committee (MTEC)

Function MTEC

10

Resource Allocation Considerations

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• Engage on policy development and policy implementation

• Review current spending & service delivery trends

(annual/monthly/quarterly)

• Review previous financial years’ performance (financial and non-

financial)

• Capacity to spend in addition to baseline over the medium term

• Alignment of new policy priorities to NDP and other government priorities

• Fiscal Framework

• Reprioritisation

Budget Preparation: Estimates of National

Expenditure (ENE)

• ENE publication is the explanatory memorandum to the

Appropriation Bill

• Shows detailed spending by vote /entity over seven years

focusing on upcoming 3 year medium term expenditure

framework period

• Aligns spending with priorities of government as informed by

the NDP and MTSF

• Tabled by the Minister of Finance with the Budget Speech

12

THE CASE OF SAPS

13

Key Issues

• Reporting mechanisms the National Treasury (NT)

uses to assess the performance of SAPS

• SAPS Budget Programme Structure

• Budget Allocations to SAPS over the years

• Expenditure and Personnel Management in SAPS

• Alignment of the SAPS Budget/Expenditure with

Performance

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Reporting mechanisms NT uses to assess the

performance of SAPS

• 5 Year Strategic Plan and Annual Performance Plan

• Approved MTEF Budget

• Drawings/spending projections

• CJS 7 point plan project plans and other programme plans

• Monthly in-year monitoring reports

• Quarterly performance reports

• Adjusted Estimates of National Expenditure (AENE)

• Annual Report

15

Reporting Mechanisms (continued…)

• Strategic plan and APP: Set out programme performance indicators and targets to achieve goals and objectives over MTEF period/5 years

• In-year Monitoring Report : monthly account of expenditure incurred

• Quarterly Performance Report: In-year reporting of non-financial results

• Drawings/Projections: Monthly breakdown of how the department intends to spend the allocated budget

• AENE: indicates status of spending and achievement of performance targets as at the end of the first six months

• CJS/programme plans: plans submitted to show how allocated budget for

specific programmes will be spent

• Approved Budget: contains details of how much is allocated to a

department per programme and economic classification

• Annual Report: Ultimate accountability document to Parliament: records,

reports and evaluates past year’s performance. Provides the audited

annual financial statements.

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SAPS Budget Programme Structure

Programme 1: Administration

• Programme purpose – Provide strategic leadership, management and support services to the South African Police

Service; and provide for the functions of the Civilian Secretariat for the Police Service.

Programme 2: Visible Policing

• Programme purpose – Enable police stations to institute and preserve safety and security, and provide for

specialised interventions and the policing of South Africa’s borders.

Programme 3: Detective Services

• Programme purpose – Enable the investigative work of the South African Police Service, including providing

support to investigators in terms of forensic evidence and the criminal record centre.

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SAPS Budget Programme Structure

(Continued…)

Programme 4: Crime Intelligence • Programme purpose

– Manage crime intelligence and analyse crime information, and provide technical

support for investigations and crime prevention operations.

Programme 5: Protection and Security Services • Programme purpose

– Provide protection and security services to all identified dignitaries and

government interests.

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SAPS Budget Allocations Over the Years

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SAPS Budget Allocations: Change in the

Budget

20

1993/94 1999/00 2005/06 2009/10 2016/17 2019/20 Average

growth rate

Budget (R’000) 6,451,000 14,534,000 28,457,000 46,410,000 80,985,000 98,945,875

76.2% Percentage Change 125.3% 95.8% 63.1% 74.5% 22.2%

SAPS Budget Allocation per Programme and

Economic Classification

21

Expenditure Management: 2011/12 – 2015/16

22

Spending Drivers under Goods and Services

23

Personnel Management in SAPS

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Financial Year

Total Expenditure R'000

Expenditure on CoE R'000

CoE as a % of Total Expenditure

Y-on-Y Growth on Total Expenditure

Y-on-Y Growth on CoE CPI Inflation

Variance between CPI and CoE Y-o-Y growth rates

No. of Peronnel

Y-o-Y Personnel Growth

Number of Serious Crimes Reported

2007/08 36,386 25,523 70.1% 6.1% 173,241

2008/09 41,492 29,046 70.0% 14.0% 13.8% 9.9% -3.9% 182,754 5.5% 2,098,229

2009/10 47,622 33,740 70.8% 14.8% 16.2% 6.4% -9.8% 190,199 4.1% 1,909,566

2010/11 53,530 38,415 71.8% 12.4% 13.9% 3.8% -10.1% 193,892 1.9% 1,839,645

2011/12 57,933 42,428 73.2% 8.2% 10.4% 5.6% -4.8% 199,345 2.8% 1,825,548

2012/13 63,157 46,825 74.1% 9.0% 10.4% 5.6% -4.8% 197,946 -0.7% 1,833,775

2013/14 68,791 51,242 74.5% 8.9% 9.4% 5.8% -3.6% 194,852 -1.6% 1,826,967

2014/15 72,507 54,332 74.9% 5.4% 6.0% 6.1% 0.1% 193,692 -0.6% 1,820,796

2015/16 76,721 57,478 74.9% 5.8% 5.8% 4.6% -1.2% 194,730 0.5% 1,788,139

Personnel Management in SAPS (Continued…)

• Between 2007/08 and 2013/14, expenditure on compensation of

employees grew at a higher rate than inflation, due to additional funding

for ICS.

• Consequently, with the exception of 2008/09, the year-on-year growth

rate on CoE was higher than that of total departmental expenditure.

• During this period, expenditure on compensation of employees increased

by more than double, from R25.5 billion in 2007/08 to R51.3 billion in

2013/14, at a cumulative growth rate of 101 per cent.

• CoE drivers in spending include basic salaries (64 per cent), employer

medical aid contributions (11 per cent) and contribution towards the

Home Owners Association (3 per cent).

• Overtime payments to staff constituted an average of 1 per cent of total

spending on CoE.

• Adjustments in ICS for public sector employees have significantly

impacted on the CoE budget for SAPS.

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Alignment between planning and

budgeting documents

Strategic Plan • strategic outcome oriented goals

• strategic objectives

Annual Performance Plan • annual targets for strategic objectives

• programme performance indicators

• annual and quarterly performance

targets

Quarterly Performance Report • progress on quarterly targets in annual

performance plan

• reasons for major deviation from targets

Annual Report • progress on quarterly targets in annual

performance plan

• reasons for major deviation from

targets

Estimates of National Expenditure • selected performance indicators & targets

• programme objectives and measures

• link expenditure with performance

Adjusted Estimates of

National Expenditure • mid-year progress on

performance and spending

Budget Programme structure • programme objectives should be linked

to strategic objectives

• programme and sub-programme

performance indicators

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Linking the SAPS Budget and Expenditure with

Performance

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PROGRAMME INDICATOR OUTCOME TARGET ACTUAL OUTCOME

BUDGET R'000

EXPENDITURE OUTCOME R'000

2015/16

Visible Policing Number of serious crimes reported per year

Outcome 3: All People in South

Africa are and feel safe.

1 790 428 1 788 139

38,444,400 38,321,100

Visible Policing

Number of crimes reported for unlawful

possession of, and dealing in, drugs per year 294 627 259 229

Visible Policing

Percentage of crime-related hits reacted to as

a result of the movement control system

screening of:

100% 100% Wanted persons

Stolen/robbed vehicles 100% 100%

Visible Policing

Percentage of medium- to high-risk incidents

stabilised in relation to requests received 100% 100%

Detective Services Detection rate for serious crimes per year

41.05% 36.90%

16,092,400 15,947,300

Detective Services

Percentage of trial-ready case dockets for

serious crimes per year 69.00% 69.63%

Detective Services

Percentage of trial-ready case dockets for

serious commercial crime-related charges per

year 53% 58.59%

Detective Services

Percentage of trial ready case dockets for

crimes dependent on police for detection 65% 62.76%

Detective Services

Percentage of original previous conviction

reports for formally charged individuals

generated within 15 calendar days per year 94% 97.02%

Crime Intell igence

Number of network operations conducted per

year 759 859 3,146,900 3,102,000

Protection and Security Services

Percentage of national key points evaluated in

compliance with the National Key Points

Act (1980) 100% 100.59%

2,427,700 2,414,100

Source: SAPS Annual Reports and ENE

Linking the SAPS Budget and Expenditure with

Performance (continued…)

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PROGRAMME NAME INDICATOR OUTCOME TARGET ACTUAL OUTCOME BUDGET R'000

EXPENDITURE R'000

2014/15

Visible Policing Number of serious crimes reported per year

Outcome 3: All People in South

Africa are and feel safe.

1 718 191 1 820 796

37,043,800

36,700,300

Visible Policing

Number of crimes reported for unlawful

possession of, and dealing in, drugs per year 264 094 267 034

Visible Policing

Percentage of crime-related hits reacted to as a

result of the movement control system screening

of:

100% 100% Wanted persons

Stolen/robbed vehicles 100% 100%

Visible Policing

Percentage of medium- to high-risk incidents

stabilised in relation to requests received 100% 100%

Detective Services Detection rate for serious crimes per year

41% 37.40%

15,133,000

5,149,700

Detective Services

Percentage of trial-ready case dockets for

serious crimes per year 68.50% 63.63%

Detective Services

Percentage of trial-ready case dockets for

serious commercial crime-related charges per

year 44% 58.80%

Detective Services

Percentage of trial ready case dockets for crimes

dependent on police for detection 64.50% 55.89%

Detective Services

Percentage of original previous conviction reports

for formally charged individuals generated within

15 calendar days per year 93% 93%

Crime Intelligence

Number of network operations conducted per

year 32 507 47 846 2,880,000 2,884,100

Protection and Security Services

Percentage of national key points evaluated in

compliance with the National Key Points

Act (1980) 100% 100% 2,145,600 2,202,900

Source: SAPS Annual Reports and ENE

Linking the SAPS Budget and Expenditure with

Performance (continued…)

Programme Name Name of Indicator

2011/12 2012/13 2013/14

Target Actual Target Actual Target Actual

Visible Policing Number of serious crimes reported per year 2 079 449 1 825 548 1 989 456 1 833 775 1 731 459 1 753 256

Detective Services

Detection rate for serious crimes per year

Between 46% and 65% 53.41% 55% 46.80% 48.50% 46.50%

Percentage of trial-ready case dockets for serious crimes 48.20% 48.20% 36.80% 66.20% 51.80% 66.90%

Conviction rate for serious crimes 88.20% 86.20% 88.60% 90.40% 88.80% 91.70%

Detection rate for contact crimes 59.60% 60.60% 60% 58.80% 61.20% 56.50%

Crime Intelligence Number of network operations conducted 26 805 49 019 28 145 37 188 24 000 34 534

Protection and security Services

Percentage of National Key Points evaluated in compliance with the National key Points Act (1980) 100% 98% 100% 96.20% 100% 100%

29 Source: SAPS Annual Reports and ENE

Linking the SAPS Budget and Expenditure with

Performance

• No one-to-one link between specific allocation and specific

target/output. Not yet at that advanced stage.

• Difficult to assess for SAPS given that 75% of allocated

budget goes to compensation of employees and some of the

SAPS indicators are impact indicators

• Programme Budgeting – information provided at programme

level and not at the level of a police station

• Need to assess the performance of specific projects or

programmes within SAPS such as the implementation of the

CJS 7 Point Plan, construction and upgrading of police

stations, etc.

• Are we measuring the right things?

• Are we setting the right targets? 30

2017 MTEF Considerations

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SAPS Budget Allocation – 2017 MTEF

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2017 MTEF Allocation Programme

Audited outcome Adjusted

Appropriation

Medium-term expenditure estimate

Average

growth

rate

(%)

Average

growth

rate

(%) R'000 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2013/14 -

2016/17

2016/17 -

2019/20

Administration 14,179,234 15,570,203 16,936,289 17,382,497 18,636,413 19,782,098 21,144,673 7.0% 6.7%

Visible Policing 35,149,132 36,700,272 38,321,105 40,865,906 44,100,008 47,121,586 50,115,493 5.2% 7.0%

Detective Services 14,704,048 15,149,725 15,947,270 16,772,488 17,934,597 19,077,677 20,433,799 4.5% 6.8%

Crime Intelligence 2,740,027 2,884,119 3,102,039 3,354,818 3,546,032 3,765,823 4,046,588 7.0% 6.4%

Protection and Security

Services

2,018,957 2,202,906 2,414,098 2,609,142 2,808,078 2,993,818 3,205,322 8.9% 7.1%

Total 68,791,398 72,507,225 76,720,801 80,984,851 87,025,128 92,741,002 98,945,875 5.6% 6.9%

Economic classification

Current payments 64,818,551 68,576,493 72,714,022 77,152,559 82,388,046 87,723,819 94,066,732 6.0% 6.8%

Compensation of employees 51,241,788 54,332,228 57,478,371 62,038,123 66,196,773 70,655,395 76,025,205 6.6% 7.0%

Goods and services 13,576,763 14,244,265 15,235,651 15,114,436 16,191,273 17,068,424 18,041,527 3.6% 6.1%

Transfers and subsidies 812,823 899,003 990,866 993,314 1,037,025 1,098,789 1,166,954 6.9% 5.5%

Payments for capital

assets

3,146,394 3,003,469 3,004,037 2,838,978 3,600,057 3,918,394 3,712,189 -3.4% 9.4%

Total 68,791,398 72,507,225 76,720,801 80,984,851 87,025,128 92,741,002 98,945,875 5.6% 6.9%

Key Budget Issues for Consideration over

the 2017 MTEF

• Holding Budget – aggregate Government expenditure ceiling to be

maintained

• Compensation of Employees Ceiling – Implementation of headcount

reduction strategies (reduced personnel numbers for SAPS)

• Reprioritisation of baseline to fund existing cost pressures and new

policy priorities (e.g. White Papers, SAPS Transformation Strategy)

• Baseline reductions to fund other Government priorities (mandate

paper)

• Cost efficiencies and value for money assessments (expenditure

reviews, March spikes)

• Implementation of OCPO instruction notes

• Performance assessments (e.g. police stations) and closing of non-

performing programmes

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THANK YOU

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