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OVERVIEW OF THE PRESENTATION

PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATIONS ON THE DEPARTMENTAL 2013/14 BUDGET ALLOCATION. OVERVIEW OF THE PRESENTATION. The presentation will cover the following: 1. Introduction 2. Summarized Departmental Financial Performance 3. Analysis of the under expenditure

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OVERVIEW OF THE PRESENTATION

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  1. PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATIONS ON THE DEPARTMENTAL 2013/14 BUDGET ALLOCATION

  2. OVERVIEW OF THE PRESENTATION The presentation will cover the following: 1. Introduction 2. Summarized Departmental Financial Performance 3. Analysis of the under expenditure 4. Roll –over application to National Treasury 5. 2013/14 Departmental Priorities per Programme 6. Overall 2013/14 MTEF Budget Allocation 7. Budget Allocation per programme and economic classification 8. Transfers and Subsidies in the new baseline

  3. 1. INTRODUCTION The purpose of the presentation is to brief Standing Committee on Appropriations on the 2013/14 Budget allocation and detailed expenditure report for the financial year ending 31 March 2013.

  4. 2. SUMMARIZED DEPARTMENTAL FINANCIAL PERFORMANCE

  5. FINANCIAL PERFORMANCE per PROGRAM (cont)

  6. FINANCIAL PERFORMANCE per ECON CLASSIFICATION (cont)

  7. FINANCIAL PERFORMANCE per ECON CLASSIFICATION (cont)

  8. FINANCIAL PERFORMANCE per ECON CLASSIFICATION

  9. 3. ANALYSIS OF THE UNDER EXPENDITURE Overall Expenditure: The total expenditure of the department amounts to R53,443 billion representing 97.4% of the total budget. The under spending of R1, 412 billion represents 2.6% of the total budget. Eighty three (83%) of this under expenditure is made up of transfer payments that had to be withheld. Compensation of employees: Final Appropriation: R292 770 Actual expenditure R266, 471 Variance R26, 299 = 9% under-spending. The under expenditure was due to posts that were not filled or filled late in the financial year. The posts are within MISA and CWP.

  10. ANALYSIS OF THE UNDER EXPENDITURE (cont) Goods and services: Allocation: R1 809 308 Actual expenditure R1 593 579 Variance R215 729= 11.9% under-spending The major contributors to the under-spending is CWP (R46,979 million) and MISA (R158, 955 million) This is mainly due to late invoicing by the contracted service providers.

  11. ANALYSIS OF THE UNDER EXPENDITURE (cont) Payments of Capital Assets: Allocation: R13 311 Actual expenditure R12 890 Variance R 421 = 3.2% under-spending The under-spending of 3.2% is due to furniture ordered not yet received and paid at year end.

  12. ANALYSIS OF THE UNDER EXPENDITURE (cont) Transfers and subsidies: The following transfers have been paid in full (100%) as the institutions have fulfilled all the conditions and requirements for the transfers: • Municipal Improvement System Grant – R 230 mil • South African LG Association- R26 mil • Municipal Demarcation Board – R40 mil • CRL Commission – R34 mil The under expenditure of R 1, 168 billion is due to the following transfers that were not paid or had to be withheld as advised by NT. • Municipal Infrastructure Grant- R 2,471 million • Local Government Equitable Share = R725.627 million • Disaster relief grant = R435.970 million (only transferred when disasters have been declared) • United Cities of LG in Africa = R2.485 million • South African Cities Network = R1.847 million

  13. ANALYSIS OF THE UNDER EXPENDITURE (cont) Transfers and subsidies: Reasons for non transfers: • LG Equitable Share The LG Equitable Share currently reflects an under-spending of R725.6 million that had to be withheld as advised by National Treasury as a result of lack of performance by municipalities on other conditional grants. • Disaster relief Grant Disaster relief grant reflects an under-spending of R 435.9 million. The grant is only utilised on the disasters that have been declared and the provinces & municipalities have fully complied with their legislative requirements. • United Cities of LG in Africa Transfers to UCLGA have been suspended pending discussions between executive authorities on future arrangements. • Municipal Infrastructure Grant • National Treasury requested the department to withhold the amount of R2.471 mil for Bela-Bela municipality.

  14. ANALYSIS OF THE UNDER EXPENDITURE (cont) Transfers and subsidies: Reasons for non transfers (cont) • South African Cities Network The SACN under spent with R1.8 mainly due to late invoicing by the entity.

  15. 4. Roll-over application to National Treasury The following funds amounting to R 182,371 million have been requested as roll-over into the 2013/14 financial year: • R 123.8 million on the CWP programme implementation, • R 36.8 million for the MISA contracts • R 2.1 million for SALGA to mediate disputes within UCLGA • R 1.3 million for the NDMC assessments and verification process • R4.6 million for Office Accommodation, invoices delayed from DPW • R11.3 million on Equitable Share and • R2.4 million on MIG withheld for Bela-Bela municipality until further notice from NT. National Treasury is currently considering the application and communicating with the department on matters that require clarification.

  16. Departmental Priorities for 2013/141. Administration 1. DCoG will develop the Post Audit Action Plan (PAAP) 2013/14 by the end of September 2013 and implement for purposes of improving audit outcome; 2. The Department will make all transfer payments for the period 2013/14 as per the payment schedule and ensure that all deadlines are met for purposes of fast-tracking implementation at a local level; 3. As part of initiatives to improve internal capacity and capability within the department, we planning to review,and submit a report on the Human Resources Plan to the Department of Public Service and Administration (DPSA) as regulated. The approved plan will be immediately rolled out within the department; 4. Support will be provided to Municipalities and Provinces to develop section 46 and 47 reports. These reports will be used to develop the 2011/12 Section 48 report on performance of local government as required in the Municipal Systems Act; 5. DCoG will support four identified provinces to develop and implement Performance Management System (PMS) and ensure that core set of local performance indicators are revised for approval; 6. Struggling municipalities will be supported with communication tools by rollout the Communication Strategy. This will support the initiative of promoting and communicating government programmes to communities. The departmental programmes will also be promoted through media engagements; 7. The Department will develop a Donor Coordination Strategy and establish new international partnerships for purposes of improving Regional and international relations; and 8. The Annual Fraud Plan and Annual Risk Management Plan will be revised and implemented in an effort to improve the departmental governance.

  17. Policy, Research and Knowledge Management:Priorities for 2013/14 1. To improve work turn-around time, DCoG planned to ensure 95% availability of key systems like Bas, Persal, Logis, internet, email; 2. We will also implement two identified Knowledge Management Strategy (KMS) intervention focusing on business process automation, this will ensure introduction of proper processes and systems that support implementation of projects; 3. Develop 4 research papers covering governance, service delivery and financial management by 31 March 2014, the papers will form the basis for future policy initiatives that are aimed at improving these identified focus areas; and 4. As a national policy development department, we have established the DCoG Policy Forum which is aimed at discussing new policy matters, government-wide initiatives, directives as well as priorities in order to position the department to act and respond accordingly to these initiatives.

  18. Governance and Intergovernmental Relations Priorities for 2013/14 1. DCoG will conduct an assessment of Provincial IGR structures in order to device appropriate intervention to improve functionality; 2. The proposed Intergovernmental, Monitoring, Support and Interventions (IMSI) Bill submitted to Parliament by March 2014; 3. Increase the development and implementation of ward level operational plans from 500 to 2000 wards by 31 March 2014; 4. Provide advice and support to 120 municipalities by way of workshops, training, projects appraisals to improve on MIG expenditure by 31 March 2014; 5. Monitor , assess and report on implementation of credit control and debt collection policy and payment of government debt in 30 identified municipalities; 6. Monitor and assess compliance by 30 municipalities with the MPRA and provide guidance to non-complying municipalities by 31 March 2014; 7. 40 Ethics Committees will be established and officials trained in municipalities across identified provinces; and 8. In order to pin down on corruption a comprehensive reports on allegations of corruption investigated, will be developed to give insight in terms of the intervention that is needed.

  19. National Disaster Management Centre Priorities for 2013/14 1. The NDMC plans to develop and review the following legislation: 2. Draft White Paper on Fire Brigade Services Legislation submitted to the Cabinet by 31 March 2014; 3 Disaster Management Amendment Bill submitted to the Cabinet for processing 31 May 2014; 4. Indicative risk and vulnerability profile for drought developed by 31 March 2014 5. The Disaster Management M&E Framework will also be developed by 31 March 2014; and The Centre will also develop a National DM public awareness annual plan aimed at popularising DM to all Stakeholders

  20. Provincial and Municipal Government SupportPriorities for 2013/14 1. Nine provinces monitored to support municipalities with filling of vacancies in terms of the Municipal Systems Act by 31 March 2014; 2. All identified municipalities will be supported to implement remedial action emanating from the Monitoring the MSA through the roll-out of guidelines; 3. Municipal Demarcation Amendment draft bill developed; 4. Discussion document on Organised Local Government will be developed; 5. Provincial Workshops will be facilitated in nine provinces and 23 districts to improve development planning capacity in municipalities outside metros and secondary by 31 March2014 on intergovernmental; The department has revived the initiative to support urban development programme, in this regard the Draft Integrated Urban Development Framework (IUDF) will be developed; 6. Provincial policy oversight Section 105 and 106 guidelines developed and for approval by MINMEC

  21. Infrastructure and Economic DevelopmentPriorities for 2013/14 1. 171 500 of work opportunities provided; 2. 48 numbers of municipalities implementing CWP in at least two wards ; 3. 18 number of municipalities where Clean Communities Programme (CCP) is coordinated and supported ; 4. 4 private sector collaborative partnerships established and support plans developed and implemented to promote economic development by 31 March 2014 5. National Framework for LED reviewed by March 2014 (base document for a new LED Strategy); 6. 50 Municipalities supported to improve on access to free basic services through indigent policies and credible indigent registers by 31 March 2014; and 7. New MIG policy developed to facilitate the improvement in delivery of basic service

  22. Overall 2013/14 MTEF ALLOCATION

  23. ALLOCATION PER PROGRAMME

  24. ALLOCATION PER ECONOMIC CLASSIFICATION

  25. TRANSFERS AND SUBSIDIES IN THE NEW BASELINE

  26. CONCLUSION THANK YOU

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