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PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATION

This presentation provides an overview of the Department's expenditure outcomes for the 2010/11 Financial Year, including reasons for under-expenditure and measures to improve expenditure trends. It also outlines the implementation plans for the 2011/12 Financial Year.

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PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATION

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  1. PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATION DIRECTORS’ GENERAL: MR. E AFRICA PROF. MC NWAILA 01 JUNE 2011

  2. OUTLINE OF THE PRESENTATION • Introduction • Summary of Expenditure Estimates for 2010/11- 2011/12 Financial Year • Request for Roll-Over of Funds from 2010/11-2011/12 Financial Year • Overview of the Expenditure Outcome 2010/11 Financial Year -Expenditure Outcomes Classified per Programme 2010/11 Financial Year -Expenditure Outcome per Economic Classification 2010/11 Financial Year • Reasons for under-expenditure • Measures to improve expenditure trends • Overview of Implementation Plans 2011/12 Financial Year -Financial resources per programme 2011/12 Financial Year -Implementation of the Budget of 2011/12 Financial Year -Implementation of the Budget 2011/12 Financial Year

  3. Introduction • The purpose of the presentation is to brief Standing Committee on Appropriations on the Departmental Financial Expenditures

  4. Summary of Expenditure estimates 2010/11 -2011/12

  5. REQUEST FOR ROLL-OVER OF FUNDS FROM 2010/11-2011/12 FINANCIAL YEAR

  6. Expenditure Outcome Classified per programme 2010/11 FY

  7. Expenditure Outcome per Economic Classification 2010/11 FY

  8. Reasons for under expenditure • Posts not filled on time • Protects implemented late • Current expenditure related to employees • Protects not completed during the year: Community Work Programme • Delivery delays on ordered furniture and equipments

  9. Measures to improve expenditure trends • COMPENSATION OF EMPLOYEES 92% (138 of 150) SMS posts have been filled, and 12 posts will be filled by the end of June 2011 which will normalise the expenditure trends. • PROJECT MANAGEMENT APPROACH The project management approach has been enforced at the level of the budget thereby linking the budget to performance management. All approved projects have been allocated budgets linked to the various milestones, this will ensure that expenditure movement is in accordance with the projections.

  10. Measures to improve expenditure trends cont.. • PROCUREMENT PLAN A procurement plan has been developed linked to the project management approach, the timeframes for projects synchronised with the procurement requirements to ensure that the service providers are in place when required and department can focus on the implementation phase. • MONITORING AND EVALUATION The Department has put monitoring measures of evaluating the expenditure trends on monthly basis to ensure that programs spend according to their monthly projections, this is linked to the monthly progress reporting on projects. Provincial Support Technical Unit (PSTU) is in place to assist in protect monitoring

  11. Financial Resources per programme 2011/12

  12. Implementation of the Budget 2011/12 Financial Year • Compensation of Employees: The departments will spend R233 million on salaries for 2011/12 FY. • Good and Services: An amount of R649 million will be spent on goods and services while R243 million is ear marked for Community Work Programme (CWP) and R192 million is allocated for Special Purpose Vehicle (SPV) therefore R214 million is for operational budget to implement some of the following projects: • Ensuring that the developed municipal turnaround strategies are implemented and that there is consistent monitoring of progress in this regard. • Addressing the municipal financial and administration problems to achieve 100% unqualified audit opinions by 2014. • Strengthening the Minister’s regulatory powers. • Strengthening the ward committees capacity after the local government elections for 2011 • The finalization of Green Paper on Cooperative Governance • Facilitation of local participatory governance and • Improving the integrated development plan across the three spheres of government

  13. Implementation of the Budget 2011/12 Financial Year continue… • Good and Services: Department Traditional affairs will focus on finalizing policies on traditional cultural practices such as initiation schools and “ukuthwala” with a view to regulate and development of the assessment instrument for the evaluation of the state and governance in the areas of Traditional Affairs in all the affected Provinces. • Payments for Capital Assets: The department allocated R19.7 million on capital assets R5.6 million is earmarked for Community Work Program (CWP) while the rest of R14.1 million will be spent on upgrading information communication technology infrastructure and on software licenses used within the department. Other funds will be used for office furniture on newly appointed staff.

  14. Implementation of the Budget 2011/12 Financial Year continue • Transfers and Subsidies: • The department is responsible for managing and transferring the Municipal Infrastructure Grant (MIG), Municipal Systems Improvement Grant (MSIG) and Equitable Share to municipalities, support will be provided to municipalities on the implementation of MIG and MSIG projects. • The allocation for disaster relief for 2011/12 amounts to R314 million, this amount is earmarked to put systems in place to provide immediate relief for disaster. • As part of department job creation initiative, the annual work opportunities target is 63 720 participants in historically marginalised communities through Community Work Programmes (CWP) and Professionals will be appointed to provide technical support to low capacity and weak municipalities from Special Purpose Vehicle (SPV) to enhance infrastructure delivery.

  15. THANK YOU

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