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Gauteng Department of Health. Presentation to the NCOP on Conditional Grants 11 May 2007. Overview. Budget Trends Pre-audited expenditure Capital and maintenance Monitoring 2007/08 Budget and MTEF. Conditional Grants. National Tertiary Services Grant (NTSG)
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Gauteng Department of Health Presentation to the NCOP on Conditional Grants 11 May 2007
Overview • Budget Trends • Pre-audited expenditure • Capital and maintenance • Monitoring • 2007/08 Budget and MTEF
Conditional Grants • National Tertiary Services Grant (NTSG) • Health Professions Training and Development Grant (HPTDG) • Revitalisation Grant (Capital) • Provincial Infrastructure Grant (Capital) • HIV and AIDS Grant • Forensic Pathology Services Grant (FPS)
Budget Trends The allocation for the NTSG and HPTDG has not kept up with CPIX or medical inflation.
2006/07 Expenditure • All conditional grants have been spent in full except for • Forensic Pathology Services which has under spent by R8,8 million • Replacement of cold rooms and body cabinets at institutions. equipment not delivered • Vehicles ordered in 06/07 but not delivered by the end of 31 March 2007. • Salary costs for the 1st quarter were paid by SAPS, claim of R3m was received but lower than anticipated • 70% of posts filled by August due to delay in recruitment processes. • Delay in the approval of facility projects by National Public Works, DAC gave standing delegations to enable procurement processes to take place without waiting for National. • Emergency repairs on mortuaries done to the value of R4,6m, department received a claim of R164k.
2006/07 Expenditure • Revitalisation – R63,8 million • During the 06/07 financial year it was reported that there will be an over expenditure on this grant • Projects were scaled down significantly to avoid over expenditure, in some projects Public works negotiated with contractors to stop work where possible without incurring penalties • Although additional funding was received in the 2006/07 Adjustments budget in January 07, it was difficult to bring on track those projects where contractors were stopped this resulted in the under expenditure specifically the revitalisation grant • Applied to Treasury for a roll over of funds.
Capital and Maintenance Expenditure • The under-expenditure on buildings relates to the unspent revitalisation and forensic pathology grants • The under-expenditure on equipment is due to commitments incurred during 06/07 but deliveries and payment were not done before year closure as well as less equipment purchased than was budgeted for.
Monitoring • Financial • Monitoring is done monthly by analysing reports and verifying information • Between Health and Works • Within Health between Branches and Directorates • Between Health and Treasury • Between Gauteng Health and the National Department of Health • Compliance with reporting requirements • Monitoring has been strengthened in 2006/7. • Executive Support Programme Manager dealing specifically with capital expenditure was appointed • Project managers have been appointed and they work closely with the Department of Public Works to monitor projects • Financial Manager within the ESPM branch has been appointed to manage and monitor project spending
Challenges • Lack of adequate funding for all capital Infrastructure projects • Lack of due diligence in project implementation and management by project teams characterised by poor delivery, extensions and cost escalations of projects • Insufficient funding for medical equipment and declining budgets in real terms
