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`. PRESENTATION TO THE SELECT COMMITTEE ON FINANCE EXPENDITURE OUTCOMES AS AT END DECEMBER 2013 04 February 2014. Outline. Provincial Own Revenue as at end of December 2013 - per Department - per Economic Classification
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` PRESENTATION TO THE SELECT COMMITTEE ON FINANCE EXPENDITURE OUTCOMES AS AT END DECEMBER 2013 04 February 2014
Outline • Provincial Own Revenue as at end of December 2013 - per Department - per Economic Classification • Summary of Conditional Grants Expenditure as at end of December 2013 - per Department • EPWP Expenditure as at end of December 2013 • Consolidated Provincial Expenditure as at end of December 2013 - per Department - per Economic Classification - for Capital Assets - for Compensation of Employees • Expenditure Outcomes per sector and per department, broken down into: • Summary • Economic Classification and • Trends • Conclusion
Conditional Grants: Agriculture, Land Reform & Rural Development • CASP: • The under spending relate to the slow implementation of the Disaster Relief Scheme. • There are strong indications that this grant will under spend considerably in the current financial year. • Compared to the 2012/13 there's however a considerable improvement on spending • Ilima/Letsema Projects: • Although the department has spent only 50 per cent up to end of the 3rd quarter, this grant projects to break-even at year end. • EPWP: • Spending on this grant is already standing 108 per cent of the total budget allocated. To date only R0.550 million has been received from national although actual spending amount to R2.321 million.
Conditional Grants : Health HIV & Aids Grant: • According to the department, the poor spending is attributed to the fact that the business plan has been revised 3 times already. The last version was sent to National Health in October 2013 but approval is still outstanding from National Health. Some activities are reliant on the pending approval from national Health to accelerate expenditure. Hospital Revitalization Grant: • According to the department, the delay is caused by the implementing agents (Public Works and IDT) in awarding tenders. This relate to the clinical equipment for the Gordonia hospital in Upington, procurement of generators and fencing for health facilities in the province. Health Infrastructure Grant: • According to the department, the projects are running as expected, but invoices cant be processes because of the cash flow problems in the department of Health. National Health Insurance: • There were capacity problems experienced by the department, however Family Health Specialists were only appointed in November and hence the slow expenditure to date. EPWP – Incentive • The tender is currently running but the awarding of the tender only happened in December 2013: This project is for the internal roads at the Galeshewe hospital and the Richmond clinic. EPWP – Social Sector: • Personnel have been appointed but expenditure is incurred in a another programme, the department is currently correcting problem on Persal
Conditional Grants : COGHSTA HSDG: • The slow spending is mainly as a result of late procurement processes (SCM) by municipalities, which according to the department may take up to 6 months to conclude and appoint service providers • Shortage of material (bricks and steel) in the province also contribute to slow implementation of projects • Despite the slow rate of spending, the department is projecting to break – even at the end of the financial year • It is not clear how the department will accelerate spending given that there's only 3 months before the end of the year.
Conditional Grants : Roads and Public Works PRMG: • This grant was reduced with an amount of R147 million during 2013/14 adjustment budget as a result of a formula error by NT. • The department however had already committed the whole amount as initially allocated in the original budget and projects were already running based on the original budget and hence the projected over expenditure. • In an effort to assist the department, the national Department of Transport redirected reallocated an amount of R187 million. The said amount has been redirected in terms of DORA.
Conditional Grants : Sport, Arts and Culture Community Library Service Grant: • The under spending on this grant is as a result of the delay in the appointment of personnel within this grant. Mass Sport and Recreation Participation Programme: • The slow spending is a result of the delay in the procurement of sport equipment and the appointment of personnel.
Provincial Summary per department • Total consolidated departments projects to over spend with a net amount of R77.423 million mainly as a result of projected over expenditure in the departments of Health, Education and Public Works • The details are explained per department
Education: Expenditure Summary • Administration • The projected over expenditure is due to appointments made without a budget mainly in district offices. • The department indicated however that this projected over spending will be curtailed through reprioritization • Public Ordinary Schools Education • The projected over expenditure is mainly on goods and services and relate to additional LTSM that was procured as a result of the increase in learner numbers.
Health: Expenditure Summary • Administration: • According to the department, the projected over spending is attributed to Medico legal cases (litigation account to almost R20 million of the total projected over spending) including compensation of employees without a budget. • District Health Services • The under spending in this programme relate to the slow spending on the HIV & AIDS Grant. • Emergency Medical Services • The department established a EMS college which is currently operating without a budget and the payment of danger allowance which was backdated. • The implementation of the two men crew is also contributing to the projected over expenditure. • Central Hospital Services • The projected over spending in thisprogramme is mainly caused by the referral system between central and district as patients sought treatment directly from Kimberley Hospital without seeking assistance from the district. • Health Facilities Management • The under spending in this programme is as a result of slow spending on infrastructure as indicated in the grant summary.
Sport, Arts & Culture: Expenditure Summary • Administration • According to the department, the overspending in administration is mainly due to the appointment of legal advisor to assist in developing legislation for the establishment of public entities, as well as the appointment of financial consultants to assist with Asset Management. • Library and Archives Services • The under spending in this programme is as a result of the delay in the appoint of personnel as indicated in the grant summary.
Agriculture, Land Reform & Rural Development: Expenditure Summary • Sustainable Resource Management: • The under spending relate to the slow implementation of the Disaster Relief Scheme as indicated in the grant summary.
Agriculture, Land Reform & Rural Development:Economic Classification
Agriculture, Land Reform & Rural Development: Expenditure Trends
Roads and Public Works: Expenditure Summary • Transport Infrastructure • The projected over expenditure is as a result of the commitments in the grant for which additional funds have been received by the department as indicated in the grant summary.
COGHSTA : Expenditure Summary • Administration • According to the department, this over spending is mainly attributed to the previous year’s goods and services accruals.
