2011/06/03

1. PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATIONS- UNAUDITED EXPENDITURE OUTCOME AS AT 31MARCH 2011 2011/06/03

2. INTRODUCTION • Year end target : 100% • Actual : 97% ( 97.5% in 2009/10). • Under expenditure has been realized in all programmes. • Total under expenditure amounts to R742,933m for the 2010/11 financial year, compared to R457,249m for the 2009/10 financial year.

3. ANALYSIS OF THE EXPENDITURE Under expenditure is in all Economic Classifications: • Expenditure on CoE under spending due to slow recruitment process for critical posts. Amount : R31m.

4. ANALYSIS OF THE EXPENDITURE • G&S and Capital expenditure under spending of R184,299m was due to commitments of R213m in the system which were note cleared by year end. • Some commitments in the system were not honoured due to banking details of suppliers not verified on Safetyweb before year-end. • An amount of R7 million for the IT Equipment was not processed as approval was only granted the 1st week of March 2011 by the Bid Adjudication Committee for the procurement of the server. • An amount of R11,6 million for procurement of equipment for the Forensic Chemistry Laboratories was not processed as SCM process were not met before financial year end.

5. ANALYSIS OF THE EXPENDITURE • Transfers under spending of R509,370 million due to stopping of transfer for Hospital Revitalization Grant (R452m). • NGO funds not transferred: • Love Iife R38m • Payment to Zivikele NGO - R600,000 • Transfer to NHLS-Cancer register- R415,000 • Estimated accruals for the 2010/11 financial year amount to R67m as against R57m for 2009/10 ( R10m decrease). • Estimated commitments for 2010/11 amounts to R213m against R276m 2009/10.

6. SUMMARYPER PROGRAMME

7. SUMMARYECONOMIC CLASSIFICATION

8. Summary Graph Adjusted Budget vs. Actual Expenditure

9. PROGRAMME 1PER SUB-PROGRAMME

10. PROGRAMME 1PER ECONOMIC CLASSIFICATION

11. PROGRAMME 1Graph Adjusted Budget vs. Actual Expenditure

12. PROGRAMME 2PER SUB-PROGRAMME

13. PROGRAMME 2PER ECONOMIC CLASSIFICATION

14. Programme 2 Graph Adjusted Budget vs. Actual Expenditure

15. PROGRAMME 3PER SUB-PROGRAMME

16. PROGRAMME 3PER ECONOMIC CLASSIFICATION

17. Programme 3Adjusted Budget vs. Actual Expenditure

18. PROGRAMME 4PER SUB-PROGRAMME

19. PROGRAMME 4PER ECONOMIC CLASSIFICATION

20. Programme 4Adjusted Budget vs. Actual Expenditure

21. PROGRAMME 5PER SUB-PROGRAMME

22. PROGRAMME 5PER ECONOMIC CLASSIFICATION

23. Programme 5 Adjusted Budget vs. Actual Expenditure

24. PROGRAMME 6PER SUB-PROGRAMME

25. PROGRAMME 6PER ECONOMIC CLASSIFICATION

26. Programme 6 Adjusted Budget vs. Actual Expenditure

27. ROLL-OVERS Out of the total under expenditure of R743m , only an amount of R285m has been requested for roll over as follows: • Computer equipment for FCL Pretoria - R61,000 • Payment Webcam - capital equipment for Security – R100,000 • Hospital Revitalization Grant , for Gauteng committed funds towards services rendered at Chris Baragwanath hospital - 72,6 million, 46 million for Eastern Cape and funding of 5 PPP projects and 5 national projects to improve infrastructure planning and procurement of health facilities for the amount of R100 million. • Consultancy services for services rendered by Lung Institute – R232,000

28. ROLL-OVERS - CONT….. • Advertising- Bulk Media buying-GAAP - R7,5 million • Printing and payment to venues & facilities for Women's Health & Genetics activities – R1,3m • Printing of Patient cards for the TB and TB prevalence survey – R5,2 million • Balance of rental claim from Dept of Public Works for Civitas building. R64 million • Transfer of R6 million to NHLS for the GeneXpert module • R21 m to purchase of Servers for the NHI IT systems and to address IT security deficiencies. • Laboratory equipment- FCL CPT - R1 million • Procurement of IT server - R5,5 million • NHLS Cancer register - R415,000 • HIV/NGO NGO transfers- R600,000

29. ROLL-OVERS - CONT….. The following were requested for roll-overs but not approved internally: • The roll over application for the amount of R3,5m for the Office of Standards was not approved ,due to a recurring trend of under expenditure. • Purchase of the PMDS server : Department must use the current capital funding under 2011/12 to fund the PMDS server based on recurring under expenditure year on year. • Love life transfer for the amount of R38m, the balance to be paid to Love Life should be paid from the (2011/12) current financial year's funding of Love Life due to the current review of Love Life funding across all other government Departments. • eHR project proposed rollover not approved due to the fact that it is still under investigation. The Department to approach Treasury during the Adjustment Estimates should the need arise during the current financial year

30. ROLL-OVERS - CONT….. • All managers requested Roll-over are requested to ensure that funds are spent within the timeframe as indicated in the roll-over request as follows: • IT Capital equipment by May 2011 • NHLS Cancer Register - May 2011 • GeneXpert transfer ,Love Life & NGO Transfer- May 2011 • Consultancy services for services rendered by Lung Institute – April 2011 • Venues , printing - May 2011 • Media buying to GCIS - June 2011

31. GOODS AND SERVICES UNDER EXPENDITURE

32. COMMITMENTS AND ACCRUALS

33. TRANSFER PAYMENTS

34. CAPITAL EQUIPMENT Comparisons of years Comments • Department requested Roll-over of R14,2 million from 2009/10. Which was approved. • IT equipment Roll-over for the amount of R21million was requested for IT Deficiencies and the migration from Novel to Microsoft as well as the NHI IT preparations for the 2010/11.

35. IN CONCLUSION • The under expenditure indicated does not reflect lack of capacity to spend the appropriated funds since the funds have been committed. • The under expenditure for the Revitalization grant will be presented in detail with remedial action reflected.