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Outcome of Conditional Grants & Capital Expenditure as at 30 June 2005 [Section 32 of PFMA]

Outcome of Conditional Grants & Capital Expenditure as at 30 June 2005 [Section 32 of PFMA]. Select Committee on Finance National Council of Provinces Presented by: Jan Hattingh Intergovernmental Relations National Treasury 11 October 2005. First Quarter Spending.

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Outcome of Conditional Grants & Capital Expenditure as at 30 June 2005 [Section 32 of PFMA]

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  1. Outcome of Conditional Grants & Capital Expenditure as at 30 June 2005[Section 32 of PFMA] Select Committee on Finance National Council of Provinces Presented by: Jan Hattingh Intergovernmental Relations National Treasury 11 October 2005

  2. First Quarter Spending

  3. Provincial Aggregated Expenditure

  4. Provincial Social Services

  5. Provincial Social Services by Province

  6. Provincial Education

  7. Provincial Public Ordinary School Education (Programme 2)

  8. Provincial Education – Personnel

  9. Provincial Education – NPNC

  10. Provincial Health

  11. Provincial District Health Services (Programme 2)

  12. Provincial Hospital Services (Programme 4)

  13. Central Hospital Services (Programme 5)

  14. Provincial Health – Personnel

  15. Provincial Health – NPNC

  16. Provincial Social Development

  17. Provincial Social Grants (Programme 2)

  18. Provincial Personnel

  19. CAPEX TRENDS

  20. Provincial Capital

  21. Capital Year-on-year growth, 2004/05 to 2005/06

  22. Provincial Capital

  23. Provincial Capital

  24. Provincial Capital

  25. Provincial Education – Capital

  26. Provincial Health – Capital

  27. Provincial Capital – Roads & Transport

  28. Integrated Housing and Human Settlement Development Expenditure

  29. Why Underspending on Capital? • Possible reasons for underspending • Inadequate focus on infrastructure delivery by line depts • Poor project planning and management of infrastructure delivery in spite of a relatively stable three year budget system • No reason not to link procurement to fin year • Culture of excuses (example funds committed) • Poor governance arrangement where agency are involved • Lack of clarity in roles and responsibility (PW & client depts) • Inadequate asset management system • Poor reporting on expenditure and on progress • Inadequate capacity (include staffing gaps and skills) • Delays in processing of payments for completed work • Treasuries must monitor SPIKE in last two months of financial year • Should core function be fragmented? • Decision to build class rooms

  30. Proposed solutions • Infrastructure Delivery Improvement Programme (IDIP) endorsed by Cabinet aims to improve planning and implementation: • Improve capacity and management systems in line departments • Improving contracting arrangements with PW – SLA to better define client-agent relationships • Strengthen capacity for procurement, project & contract management in public works • Success of IDIP depends • Commitment at all levels of government, esp within depts • Improvement in information systems to support needs identification, prioritisation & performance monitoring • Adequately functioning asset management systems in place – asset registers including assessment of condition & utilisation • Recruitment of appropriate skills (level of posts vs required skills)

  31. INFRASTRUCTURE TRENDS

  32. Provincial Education: Capex v/s Infrastructure Budgets

  33. Provincial Education: Capex v/s Infrastructure Spending

  34. Provincial Health: Capex v/s Infrastructure Budgets

  35. Provincial Health: Capex v/s Infrastructure Expenditure

  36. Provincial Capital – Roads & Transport: Capital v/s Infrastructure Budgets

  37. Provincial Capital – Roads & Transport: Capital v/s Infrastructure Expenditure

  38. MARCH SPIKE

  39. Quarterly Provincial Spending – 2004/05 Financial Year

  40. Quarterly Provincial Spending – 2004/05 Financial Year

  41. Quarterly Comparison between the 2003/04 and 2004/05 Financial Years

  42. Monthly Expenditure for the 2002/03, 2003/04 and 2004/05 Financial Years

  43. Provincial Monthly (Actual and Projected) Expenditure

  44. CONDITIONAL GRANTS EXPENDITURE

  45. Conditional Grants [Overview – 1st Quarter]

  46. Conditional Grants – continued [Overview – 1st Quarter]

  47. Provincial CGs Spending Rate

  48. Publication Dates for Provincial S32 Reports • 2005/06 Financial Year: • 2nd Quarter (as at 30 September 2005) 28 October 2005 • 3rd Quarter (as at 31 December 2005) 30 January 2006 • 4th Quarter (as at 31 March 2006) 28 April 2006

  49. Proposed Dates for QPRs • Practice Note 3 of 2005 (issued with effect from 01 August 2005): • National departments administering conditional grants are required to table QPRs (including both financial and non-financial information) with the SCOF in the NCOP at the end of each quarter in line with the requirements of Sections 19(1)(c) and 21(2)(d) of the Act, Grant Frameworks and Treasury Regulation 5.3. • Departments are required to provide the NT with copies of the reports tabled at SCOF in NCOP. The quarterly reports for each quarter should be tabled by the dates provided below. • The dates are as follows: • First Quarter: 08 August 2005 • Second Quarter: 07 November 2005 • Third Quarter: 07 February 2006 • Fourth Quarter: 08 May 2006

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