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This presentation provides the expenditure information and analysis of expenditure trends as at 31 May 2011, in compliance with Section 32 of the PFMA. It includes expenditure per programme and transfers, expenditure per economic classification, and variance analysis.
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EXPENDITURE OUTCOMES AS AT 31 MAY 2011 PRESENTER: MS LERATO THWANE DATE: 14 JUNE 2011
Section 32 of the PFMA and Quarterly Financial Reports Section 32 of the PFMA refers to the publishing requirements by National Treasury of a monthly statement of actual revenue and expenditure with regards to National Revenue Fund. In order to assist National Treasury in doing this, departments have to provide information in a prescribed format and in line with timeframes as per practice notes that National Treasury issues. The monthly requirement is that expenditure information is reported to National Treasury in a prescribed format. The quarterly requirement is for interim financial statements to be submitted also in a prescribed format at the end of each quarter. The following slides present the current year’s expenditure information and the analysis of expenditure trends as at 31 May 2011; this information is presented to National Treasury on a monthly basis in order to feed into their system to comply with section 32 of the MFMA.
Variance analysis Administration: The total programme spending was projected to be on 16% by 31 May 2011. • Compensation of employees: The expenditure is currently at 17 % against the projection of 16 %, which is slightly over with 1 per cent but still within the benchmark. • Goods and services: The actual expenditure reflects 4 % spending against the 18% projected. The reasons for this is that the implementation of projects have not yet started as planned. • Capital payments: The expenditure reflect 0 % versus 16% projected, the under-spending is mainly due to the procurement processes for office furniture which are still underway. Policy, Research and Knowledge Management Support: The total programme spending was projected to be on 16% by 31 May 2011 • Compensation of employees: The expenditure is currently at 16 % against the projection of 16 % • Goods and services: The actual expenditure reflects 3 % spending against the projected 19% spending. The cost drivers according to the projected expenditure are computer services, consultants, contractors, and travel and subsistence which most are under spending, this is due to the appointment of service providers which is still in process. • Capital payments: The expenditure reflect 11 % versus 12% projected which is within the benchmark
Variance analysis Governance and IGR: The total programme spending was projected to be on 16% (excl Equitable Share) by 31 May 2011 • Compensation of Employees: The expenditure is currently at 13% versus the 16% projected, mainly due to few posts that are still vacant. • Goods and Services: The expenditure on their operational budget stands at 2%, which is far below the bench mark of 16%. This is mainly due to the implementation of their project plans which are stilI at initial stages and the procurement of services for the same. National Disaster Management Centre: The total spending was projected to be at 16% by 31 May 2011 • Compensation of employees: The expenditure is currently at 8% against the projection of 15%, this is mainly due to posts that are still vacant and not filled after the sub-programme was elevated to a programme level. • Goods and services: The actual expenditure reflect 4% spending against the projected 18% spending. The under-spending is as a result of not having the dedicated programme manager to manage the spending trends. • Capital payments: The expenditure reflects 0% versus 9.5% projected, the under-spending is mainly due the fact that the office equipments that will upgrade the state of Disaster infrastructure is yet to be procured. • Transfers and subsidies: The allocation of 775 million that has been appropriated to National Disasters if incurred and declared.
Variance analysis Provincial and Municipal Govt Systems: The total spending was projected to be at 16% by 31 May 2011 • Compensation of Employees: The expenditure is currently at 26% against the projection of 16%, this is mainly due to provincial technical unit posts. • Goods and Services: The actual expenditure reflect 4 % spending against the projected 17% spending. The under-spending is due to projects not yet started as planned. • Capital payments: The expenditure reflects 0% versus 8% projected, the under-spending is mainly due the procurement process for the equipment for new officials that is still underway. Infrastructure Economic Development: The total programme spending was projected to be on 16% by 31 May 2011 • Compensation of Employees: The expenditure is currently at 15%, this reflects a small margin of variance which is still within the projected spending. • Goods and Services: The expenditure is on 16% versus 18%, which is nearly within the target spending, this spending patterns are being monitored in this regard. • Households: The expenditure is on 11% as projected by the Community Works Program for wage cost.
Variance analysis Traditional Affairs: The total programme spending was projected to be on 16% by 31 May 2011 • Compensation of employees: The expenditure is currently at 14% against the projection of 16%, this is mainly due to just a few outstanding appointments. • Goods and services: The actual expenditure reflects 6% versus 16% projected. The under spending is mainly due to the projects and committee meetings not yet started as planned. • Capital payments: The expenditure reflects 2% versus 25% projected due to procurement processes that are still in process, there are some orders that have not been paid. • Transfers and subsidies: The expenditure reflects a 25 % transfer of the CRL commission as projected.
