SELECT COMMITTEE ON FINANCE: Public Hearings on Conditional Grants and Capital Expenditure

1. SELECT COMMITTEE ON FINANCE:Public Hearings on Conditional Grants and Capital Expenditure Presentation by: Sibusiso Buthelezi HOD

2. CONTENTS • Strategic Context • Budget trends • Roads infrastructure • Provincial Infrastructure Grant • Departmental Infrastruture budget • Public Works infrastructure • Departmental Infrastruture budget • Client Department budgets

3. VISION AND MISSION Vision • Socio-economic growth, development, and an enhanced quality of life for all people in Gauteng Mission • To develop an integrated, sustainable infrastructure, which promotes a people-centred, innovative, developmental public works and an accessible, safe and affordable movement of people, goods and services

4. SIX (6) STRATEGIC OBJECTIVES • Provision of accessible, affordable, reliable, safe, integrated and environmentally sustainable public transport system • Effective management and transformation of transport and socio-economic infrastructure related institutions, systems and processes • Support economic growth and investments through the provision of appropriate transport systems and socio-economic infrastructure • Integrate transport systems and socio-economic infrastructure systems in the Gauteng Growth and Development Strategy and development plans of other spheres of government • Implement the Expanded Public Works Programmes in a manner that optimizes employment and addresses economic and social needs of the poor • Efficient and effective management of the Department

5. Budget Spending trends

6. Conditional Grant • The department is a recipient of the Provincial Infrastructure Grant from National Treasury • The grant is used for maintenance and rehabilitation of roads • A business plan was submitted as required by Division of Revenue Act

7. 2001/02 2002/03 2003/04 2004/05 2005/06 R'000 R'000 R'000 R'000 R'000 Details Budget 32,344 62,918 94,321 132,916 147,911 Add: Rollover - - - - - Actual 33,344 64,020 93,366 150,924 122,117 Under(Over) (1,000) (1,102) 955 (18,008) 25,794 Percentage Spent 103% 102% 99% 114% 83% Conditional Grant Expenditure Trends

8. Reason for under spend • The under spend was caused by heavy rains received in the last quarter of the year. The rainfall exceeded the amount normally catered for in project planning.

9. 2005/06 Quarterly Expenditure

10. Grant Expenditure per project

11. 2001/02 2002/03 2003/04 2004/05 2005/06 R'000 R'000 R'000 R'000 R'000 Details Budget 300,825 411,066 298,223 381,038 339,597 Routine/Unplanned maintenance 61,050 79,995 95,009 113,770 136,416 Programmable Maintenance and Construction 239,775 329,204 203,214 222,618 203,181 Add: Rollover/Veriment - 1,867 44,650 Actual 300,441 426,749 317,775 380,854 288,841 Under(Over) 384 (15,683) (19,552) 184 50,756 Percentage Spent 100% 104% 107% 100% 85% Infrastructure Expenditure Trends

12. Reason for under spend • The under spend was caused by heavy rains received in the last quarter of the year. The rainfall exceeded the amount normally catered for in project planning. • The funds were re-prioritized to start other approved capital projects (ITSS & PROS).

13. Quarterly Expenditure Trends

14. Key projects in Roads Infrastructure • Construction of the dual carriageway and two intersections for Cosmo City • Construction of K60 in Sunninghill • Construction of a dual carriageway from Dalpark to Heidelberg - K109 Old Heidelberg road • Rehabilitation of the Cullinan road in the Dinokeng area

15. Details Budget Actual Under(Over) % Spent R'000 R'000 R'000 DPTRW 71,474 70,124 1,350 98% DACE 21,736 19,710 2,026 91% DSD 7,248 6,949 299 96% Total 100,458 96,783 3,675 96% LEGEND DPTRW = Department of Public Transport, Roads and Works DACE = Department of Agriculture, Conservation and Environment DSD = Department of Social Development Departmental Public Works Capital Budget

16. Reasons for under spend • Under spend in DPTRW and DSD is due to price variances. • Under spend for DACE was due to Capital Works assignment which had to be completed before the maintenance work could be done

17. Monitoring capacity and planning • Monthly Expenditure Report meetings are held between programme managers and the Finance branch. • Senior quarterly management meetings are used to discuss performance of the various programmes. • The Executive Management committee also receives monthly expenditure report from the CFO. • The HOD holds one-on-one meetings with individual managers from time to time to ensure accountability for service delivery.

18. Monitoring capacity and planning • At unit level performance is monitored against operational plans. • Monthly and quarterly infrastructure reports are send to Treasury. • Project Management Resource Groups assist in ensuring performance happens at site level.

19. Service Level Agreements • The department is in a process of finalizing SLA’s with client departments. • DACE was signed in the last financial year • SLA’s with Blue IQ are in place for the Cradle of Humankind and Dinokeng projects.

20. Conclusion • The report send to Treasury indicated that the department will over spend in CAPEX by R348 million. The report was prepared at time when we were busy with journals to correct the chart of account classification problem. • The next slide shows the corrected version of the accounts.

21. Capital Expenditure 2005-06

22. THANK YOU