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DIRCO Expenditure report 2013/14 Quarter 3 Presentation to the Portfolio Committee Date: 25 February 2014. Table of contents. DIRCO Expenditure report Summary Expenditure per programme African Renaissance fund (ARF) Budget allocation List of Committed projects.
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DIRCO Expenditure report 2013/14 Quarter 3 Presentation to the Portfolio Committee Date: 25 February 2014
Table of contents • DIRCO Expenditure report • Summary • Expenditure per programme • African Renaissance fund (ARF) • Budget allocation • List of Committed projects
Vote Expenditure continued… • Total expenditure for the Department as at the end of the third quarter amounts to R4.128 billion or 71.7% of the appropriation. • This expenditure is 6.5% lower than what the department had projected for the period. • The low expenditure was visible mainly under Programmes 1 and 5. In terms of economic classification, the slow spending is visible mainly under Transfer payments as well as Payments for capital assets. • The details of the variances are discussed under each Programme.
Programme 1 continued…. • Total expenditure for the Programme as at the end of the third quarter amounts to R842.8 million or 63.5% of the programme’s total appropriation. This expenditure is 18% lower than what had been projected for the period. • Reasons for the low spending: • Diplomatic training, research and development – the Heads of Missions training did not take place as planned. The training is dependent on the appointment of new Ambassador designates by the President. No appointments have been made, hence no training was provided. Furthermore, outstanding invoices for 9 training programmes that were provided during quarter 3 contributed to the lower the projected expenditure. • Foreign fixed assets management – Payments for capital projects in Tokyo, R 38 million, Washington, R 25 million, Dar Es Salaam, R 18 million, Lilongwe, R 3.8 million were projected for December 2013. However, actual payments were made in January 2014. The invoices for these projects were received late, hence the department could not facilitate the transfer payment before the end of December 2013. • Office accommodation – there are outstanding invoices for rented properties from the Department of Public work (DPW). The department held a meeting with the DPW to address the problem of long outstanding invoices. It was resolved in the meeting that all outstanding invoices would be sent to DIRCO by the end of February 2014.
Programme 2 continued…. • Total expenditure for the Programme as at the end of the third quarter amounts to R2.087 billion or 75.6% of the programme’s total appropriation. • The expenditure is in line with what was projected for the period.
Programme 3 continued…. • Total expenditure for the Programme as at the end of the first quarter amounts to R320.1 million or 69.8% of the programme’s total appropriation. • This expenditure is 6.3% lower than what the Programme had projected for the period. • The lower than projected expenditure was mainly under the subprogramme Continental Cooperation, which was 15.8% lower than projections as a result of major meetings that were not convened in the during the third quarter, including African Union Peace and Security Council (AUPSC) Summit and ministerial meetings; AU African Chiefs of Defence and Security Meeting, and New Partnership for Africa’s Development (NEPAD) summits, working group meetings, amongst others. • The overspending on Payments for capital assets is due to procurement of office furniture and equipment for officials that were seconded to the African Union Commission to Support the Chairperson, H.E Nkosazana Dlamini-Zuma.
Programme 4 continued…. • Total expenditure for the Programme as at the end of the first quarter amounts to R207.7 million or 81.6% of the programme’s total appropriation. • Expenditure for this programme is 11.8% higher than what had been projected for the period. This is mainly due expenditure incurred by the department for facilitating State Visits and providing protocol services during the funeral of the late and Former President Nelson Mandela. • The expenditure was not budgeted, it was unforeseen.
Programme 5 continued…. • Total expenditure for the Programme as at the end of the third quarter amounts to R670.4 million or 70.4% of the Programme’s total appropriation. • This expenditure is 13.3% lower than what had been projected for the period. The slow spending is mainly due to the membership fees to international organisation that have not yet been paid. The assessment letters from these international organisations, which indicate the amount due for payment, were only received late December 2013.
