1.8 It is important to indicate at the outset that the Committee is concerned about the very limited progress the DCS has made over the past five years not only in relation to its financial management, but in its overall service delivery to sentenced offenders especially with regard to ensuring a safe and secure correctional environment. Much of what had been identified as areas of serious concern in 2011/12 have remained unchanged in 2012/13. Stakeholders have also observed that practically all recommendations made by the Committee have been ignored, as little evidence can be found that they have been considered, and where possible implemented. 2. FINANCIAL INFORMATION 2.1 Financial Performance: 1 April 2012 to 31 March 2013 2.1.1 The DCS received R17,7 billion in the 2012/13 financial year, of which it spent 97,2%. It underspent on all but the Incarceration programme. Most of the under-expenditure was ascribed to delays in the filling of funded posts. In the previous financial year it had underspent by 5,4%, and in 2010/11 by 4,7%. While the improvement in spending between 2011/12 and 2012/13 is noted, it is also noted with concern that the DCS' spending appears to fluctuate unpredictably, and that in the period between 2010/11 and 2012/13 the Department had failed to spend just over R2 billion of what it had been allocated. 2.1.2 Most of the R386,7 million under-expenditure occurred in relation to the Rehabilitation and Social Reintegration programmes which are integral to the DCS' service delivery. The under-spending on these programmes was also ascribed to delays in the filling of funded vacancies. 2.1.3 The DCS' fruitless and wasteful expenditure had decreased from R71,3 million in 2011/12 to R1,6 million in 2012/13. The 2012/13 fruitless expenditure, which was still under investigation at the time of reporting, was the result of value added tax (VAT) having been paid to non-VAT vendors, and to R189 000 in interest paid for office-space occupied. 2.1.4 Irregular expenditure has increased from R214,65 million in 2011/12 to R363,79 in 2012/13. An amount of R579,329 million, which included an amount dating back to 2011/12, was still awaiting condonation at the time of reporting. The irregular expenditure was reportedly caused by the DCS' non-adherence to procurement procedures, and the absence of service level agreements with amongst others, the Departments of Public Works (DPW) and Department of Justice and Constitutional Development (DoJCD). 2.1.5 The Administration programme received a final appropriation of R4,77 billion of which only 97,6% was spent. The under-expenditure was ascribed to delays in procurement for the establishment of cabling and local area network (LAN) equipment, and delays in the filling of funded vacant posts. 2.1.6 The Rehabilitation programme received a final appropriation of R967,5 million of which only 87% was spent. The under-expenditure was ascribed to delays in the filling of funded vacant posts. 2.1.7 The Incarceration programme received a final appropriation of R9,498 billion of which 99,8% was spent. 2.1.8 The Care programme received a final appropriation R1, 724 billion of which 96,8% was spent. The under-expenditure was ascribed to delays in the filling of funded vacant posts, and savings accrued when the nutritional services contract, which the DCS had anticipated would not be renewed, was extended. 2.1.9 The Social Reintegration programme received a final appropriation of R739,2 million, of which 90,4% was spent. As in the case of the Care programme, the DCS ascribed the under- expenditure to delays in the filling of funded vacancies only.