NWPG Expenditure as at 31 December 2013 Presentation to Select Committee on Finance

NWPG Expenditure NWPG Expenditure as at 31 December 2013as at 31 December 2013

Presentation to Presentation to Select Committee on FinanceSelect Committee on Finance

04 February 201404 February 2014

Slide 1

• Actual Expenditure as at 31 December 2013

• Provincial Spending

• Compensation of Employees

• Spending on Conditional Grants

• Spending on Infrastructure Budgets (Excl. C/Grants)

• Spending details per Department

• Provincial Own Revenue

• Intervention Measures

• Conclusion

Presentation OutlinePresentation Outline

The data shows that as at 31 December 2013, provincial departments have spent 73.53 percent or R22.1 billion of the R30 billion provincial annual budgets. It further shows that the expenditure percentage shares against the budget increased with 4.67 percent, from 68.86 percent in 2012/13 to 73.53 percent for the current financial year.

ACTUAL PROVINCIAL ACTUAL PROVINCIAL SPENDING SPENDING

PER DEPARTMENT AT 31 PER DEPARTMENT AT 31 DEC 13DEC 13

AEPRE Actual Percentage IYM ProjectedOriginal Total Adjusted Expenditure of budget (Over)/UnderBudget Adjustment Budget as at spent Expenditure

2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

1 Office of the Premier 259 669 100 075 359 744 208 275 57.90% - 2 Provincial Legislature 217 142 20 000 237 142 146 660 61.84% - 3 Health 7 667 281 535 741 8 203 022 6 419 118 78.25% (217 794) 4 Sport, Arts and Culture 465 882 45 376 511 258 313 730 61.36% - 5 Human Settlements, Safety and Liaison (Public Safety Branch) 451 612 10 532 462 144 316 287 68.44% - 6 Economic Development, Environment, Conservation and Tourism 486 062 69 778 555 840 405 022 72.87% - 7 Department of Finance 464 511 (52 775) 411 736 274 084 66.57% 6 000 8 Education and Training 11 321 394 200 601 11 521 995 8 929 236 77.50% (42 000) 9 Local Government and Traditional Affairs 430 960 181 493 612 453 301 128 49.17% -

11 Public Works, Roads and Transport 3 393 499 362 947 3 756 446 2 271 668 60.47% - 12 Social Development 1 082 130 (21 669) 1 060 461 761 487 71.81% 4 430 13 Agriculture and Rural Development 834 805 54 043 888 848 570 333 64.17% 36 555 15 Human Settlements, Safety and Liaison (Human Settlement Branch) 1 491 108 27 603 1 518 711 1 216 578 80.11% -

28 566 055 1 533 745 30 099 800 22 133 606 73.53% (212 809)

Programme

Total

Whilst there is an improvement in spending, some departments are still lagging behind with spending of 60 percent and below compared to the norm of 75 percent. These departments include Local Government & Traditional Affairs (49.17 percent) and Office of the Premier (57.90 percent) and Public Works, Roads & Transport (60 percent).

The projected provincial overspending as at 31 December 2013, is primarily registered by the Departments of Health with R218 million and Education & Training with R42 million mainly in respect of their budgets on Compensation of Employees.

Three departments project to underspend their allocated budget, namely the Departments of Agriculture & Rural Development with R36.5 million, Finance with R6 million and Social Development with R4.4 million.

Given the R1.5 billion appropriated adjustment to the provincial budget and the fact that December and January were quiet months for spending, there is a high probability that the provincial departments’ spending will normalize by the end of February 2014.

Slide 4


PER DEPARTMENT AT 31 PER DEPARTMENT AT 31 DEC 13DEC 13

• Spending is mainly registered under Compensation of Employees (CoE) at 76.13, followed by Transfer Payments with 73.69 percent and Goods & Services with 70.47 percent.


PER ECONOMIC PER ECONOMIC CLASSIFICATIONCLASSIFICATION

AEPRE Actual Percentage IYM ProjectedOriginal Shifts/ Adjusted Expenditure of budget (Over)/UnderBudget Virements Budget as at spent Expenditure

2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

16 413 272 427 652 16 840 924 12 820 741 76.13% (214 480) 4 357 484 222 184 4 579 668 3 374 795 73.69% 51 842 5 593 454 27 738 5 621 192 3 959 520 70.47% (48 810)

Interest on Rent on Land 1 575 567 2 142 843 37.58% 45 Sub-total: Current 26 365 785 678 141 27 043 926 20 155 899 74.54% (211 403) Capital Expenditure

252 186 100 575 352 761 154 133 43.45% (1 392) 1 937 589 755 479 2 693 068 1 821 025 67.62% -

10 495 (450) 10 045 2 549 25.38% (14) Sub-total: Capital 2 200 270 855 604 3 055 874 1 977 707 64.68% (1 406) Total Expenditure 28 566 055 1 533 745 30 099 800 22 133 606 73.53% (212 809)

Compensation of employees

Goods and ServiceTransfer Payments

Land and BuildingsEquipment

Other Capital Expenditure

Economic Classification

Current Expenditure

• The comparative increase in spending as compared to the same period last year is across all economic classifications in particular on Land & Buildings (+23.62%) and Goods & Services (+8.99%).

The average provincial spending on Compensation of Employees (CoE) is 76.13 percent or R12.8 billion of the allocated budget of R16.8 billion as at 31 December 2013. This is a percentage share increase of 1.65 percent when compared to same period last year when expenditure of 74.48 percent or R11.4 billion was recorded.

COMPENSATION OF COMPENSATION OF EMPLOYEES (COE) EMPLOYEES (COE)

SPENDING AS AT 31 DEC SPENDING AS AT 31 DEC 1313

Actual Percentage IYM ProjectedExpenditure spent of (Over)/Under

as at Budget as at Expenditure31/12/2013 31/12/2013 31/12/2013

R' 000 R' 000 R' 000 R' 000 % R' 0001. Office of the Premier 133 712 28 795 162 507 101 106 62.22% - 2. Provincial Legislature 89 430 6 000 95 430 75 281 78.89% - 3. Health 4 405 847 295 586 4 701 433 3 619 445 76.99% (157 565) 4. Sport, Arts and Culture 183 765 (2 158) 181 607 125 321 69.01% - 5. Human Settlements, Safety and Liaison (Public Safety Sector) 309 648 4 705 314 353 232 055 73.82% - 6. Economic Development, Environment, Conservation and Tourism 136 409 (2 995) 133 414 93 029 69.73% (21 270) 7. Department of Finance 261 579 (79 103) 182 476 129 864 71.17% - 8. Education and Training 8 844 040 124 377 8 968 417 6 957 194 77.57% (42 000) 9. Local Government and Traditional Affairs 235 032 (4 939) 230 093 172 156 74.82% - 11. Public Works, Roads and Transport 739 385 500 739 885 519 745 70.25% - 12. Social Development 535 765 41 266 577 031 408 429 70.78% - 13. Agriculture and Rural Development 415 511 20 018 435 529 301 380 69.20% 6 355 15. Human Settlements, Safety and Liaison (Human Settlement Sector) 123 149 (4 400) 118 749 85 736 72.20% - Total : Provincial Departments 16 413 272 427 652 16 840 924 12 820 741 76.13% (214 480)

Actual and Projected CoE Expenditure as at 31 December 2013

Compensation of Employees per Provincial DepartmentOriginal Budget

2013/2014

Total Adjustments 2013/2014

AEPRE Adjusted Budget

2013/2014

In aggregate, provincial departments are projecting to overspend their 2013/14 personnel annual budgets by R214 million as at 31 December 2013.

This is mainly in the departments of Health, Education & Training and Economic Development, Environment, Conservation & Tourism. However, the department of Agriculture & Rural Development projects to underspend the COE with R6.3 million.

Some pressures, in particular on CoE, are highlighted by the In-year Management reports in terms of projections in going forward and needs to be addressed.

Departments were advised that they must through reprioritization of their entire budget cover any further shortfalls that may arise after implementation of the additional funding from National and the province during their adjusted estimates process.

Slide 7

COMPENSATION OF COMPENSATION OF EMPLOYEES (COE) EMPLOYEES (COE)

SPENDING AS AT 31 DEC SPENDING AS AT 31 DEC 1313

The Compensation of Employees (CoE) share of provincial budget decreased from 57.46 percent in April 2013 to 55.95 percent as at December 2013.

COMPENSATION OF COMPENSATION OF EMPLOYEES SHARE OF EMPLOYEES SHARE OF PROVINCIAL BUDGET PROVINCIAL BUDGET

Original Budget 2013/2014

Percentage of Budget

30/04/2013

Budgeted Amount

30/06/2013


30/06/2013

Budgeted Amount

30/09/2013


30/09/2013

Budgeted Amount

2012/2013


R' 000 % R' 000 % R' 000 % R' 000 %1 Office of the Premier 133 712 0.81% 133 712 0.82% 133 712 0.81% 162 507 0.96%2 Provincial Legislature 89 430 0.54% 89 430 0.55% 89 430 0.54% 95 430 0.57%3 Health 4 405 847 26.84% 4 405 847 26.86% 4 580 217 27.67% 4 701 433 27.92%4 Sport, Arts and Culture 183 765 1.12% 183 765 1.12% 183 765 1.11% 181 607 1.08%5 Human Settlements, Safety and Liaison (Public Safety Branch) 309 648 1.89% 309 648 1.89% 309 648 1.87% 314 353 1.87%6 Economic Development, Environment, Conservation and Tourism 136 409 0.83% 136 409 0.83% 136 409 0.82% 133 414 0.79%7 Department of Finance 261 579 1.59% 261 274 1.59% 241 496 1.46% 182 476 1.08%8 Education and Training 8 844 040 53.88% 8 844 040 53.92% 8 844 040 53.42% 8 968 417 53.25%9 Local Government and Traditional Affairs 235 032 1.43% 235 032 1.43% 235 032 1.42% 230 093 1.37%

11 Public Works, Roads and Transport 739 385 4.50% 739 385 4.51% 739 385 4.47% 739 885 4.39%12 Social Development, Women, Children and Person with Disabilities 535 765 3.26% 535 765 3.27% 535 765 3.24% 577 031 3.43%13 Agriculture and Rural Development 415 511 2.53% 404 065 2.46% 402 565 2.43% 435 529 2.59%15 Human Settlements, Safety and Liaison (Human Settlement Branch) 123 149 0.75% 123 149 0.75% 123 149 0.74% 118 749 0.71%

16 413 272 - 16 401 521 (11 751) 16 554 613 141 341 16 840 924 -

28 566 055 57.46% 28 566 055 57.42% 28 566 055 57.95% 30 099 800 55.95%23 576 368 69.62% 21 332 440 76.89% 21 332 440 77.60% 24 754 650 68.03%

Provincial Departments

Total: CoE Budget & Adjustments Against Original CoE Budget

Total Provincial Budget & Percentage of CoE against Prov BudgetTotal Provincial Budget Less Conditional Grants & % of CoE/Budget

September 2013 December 2013

Compensation of Employees: Budget

April 2013 June 2013

The 2013/14 budget for conditional grants is R5.3 billion (inclusive of the R289 million approved conditional grant rollovers and R66 million additional funds) with the rate of expenditure amounting to 73.75 percent or R3.9 billion and summarized per department as follows: -

SPENDING ON CONDITIONAL SPENDING ON CONDITIONAL GRANTSGRANTS

Conditional Grant Allocations within the North West Provincial Departments

Approved Budget (plus

Rollovers) 2012/13

Actual Expenditure

as at 31/12/2012

Actual % Spent of Budget

31/12/2012

Approved Budget (plus

Rollovers) 2013/14

Actual Expenditure as at 31/12/2013

Actual % Spent of Budget

31/12/2013

R' 000 R' 000 % R' 000 R' 000 %

Health 1 600 846 984 786 61.52% 1 729 815 1 370 738 79.24%

Sport, Arts and Culture 122 134 57 460 47.05% 112 333 60 010 53.42%

Economic Development, Environment, Conservation and Tourism - - - 550 - 0.00%

Education and Training 1 157 798 747 468 64.56% 1 082 395 758 929 70.12%

Public Works, Roads and Transport 1 026 821 298 152 29.04% 906 798 561 332 61.90%

Social Development 11 657 6 987 59.94% 16 431 11 356 69.11%

Agriculture & Rural Development 227 440 207 705 91.32% 269 291 125 991 46.79%

Human Settlements, Safety and Liaison 1 064 405 826 129 77.61% 1 227 537 1 053 822 85.85%

Total Conditional Grant Expenditure for 2012/13 & 2013/14 5 211 101 3 128 687 60.04% 5 345 150 3 942 178 73.75%

The provincial spending on conditional grants averages at 73.75 percent and is an increase of 13.71 percent when compared to the same period last year where expenditure was 60.04 percent. However, the aggregate spending is still 1.25 percent or R66.8 million below the estimated target of 75 percent as at 31 December 2013.

Specific grants that show low rates of spending (50 percent and less) include Technical Secondary Schools Recapitalization (27.62 percent); Dinaledi School Grant (34.40 percent); Comprehensive Agricultural Support Programme (48.25 percent) and Mass Sport and Recreation Participation Programme (50.19 percent).

Conditional Grant funds not transferred to the province by 31 December 2013 as a result of the low spending trends amounts to R1.2 million and relates to the following departments.

SPENDING ON CONDITIONAL SPENDING ON CONDITIONAL GRANTSGRANTS

Budget as per Division of

Revenue Act (DoRA)

2013/2014

Amounts as per payment

schedule as at 31/12/2013

National Transfers

received as at 31/12/2013

Amounts not transferred as at

31/12/2013

R'000 R'000 R'000 R'000

EPWP Integrated Grant for Provinces (Infrastructure Sector) (5 A)

Department of Economic Development, Environment, Conservation and Tourism 550 550 385 165

Department of Agriculture and Rural Development 550 550 385 165

Department of Human Settlements, Public Safety and Liaison 3 000 3 000 2 100 900

Total Conditional Grants 4 100 4 100 2 870 1 230

Conditional Grants for the 2013/2014 financial year

CHALLENGE REMEDIAL ACTION

Delayed and non compliant SCM processes

Tenders to be advertised as early as possible. Registration process of service providers to start on time.

Lack of capacity to monitor and administer grants in the province.

Give training and assist with monitoring.

Non compliance with requirements in DoRA framework in terms of reporting and planning.

Assessment outcomes, compliance letters, reminders, support and follow up. Training on business plans

Lack of communication between districts to their respective Head offices resulting in inaccurate reporting.

Head offices as well as district offices urged to improve communication to improve reporting.

Reporting and implementation does not align with the business plan targets.

Reports are evaluated and feedback given to departments to correct.

CONDITIONAL GRANTS: CONDITIONAL GRANTS: CHALLENGES AND REMEDIAL CHALLENGES AND REMEDIAL

ACTIONSACTIONS

Slide 11

The provincial infrastructure budget, inclusive of the adjustment of R603 million for approved rollovers and additional funds, amounts to R1.7 billion with 51.56 percent expenditure as at 31 December 2013.

The provincial spending on infrastructure funds averages at 51.56 percent and is an increase of 25.49 percent when compared to the same period last year where expenditure was 26.07 percent. However, the aggregate spending is still 23.44 percent or R414 million below the estimated target of 75 percent as at 31 December 2013.

SPENDING ON SPENDING ON INFRASTRUCTURE FUNDS INFRASTRUCTURE FUNDS (EXCLUDING C/GRANTS)(EXCLUDING C/GRANTS)

R' 000 R' 000 % R' 000 R' 000 %

Health 60 730 20 692 34.07% 484 101 450 733 93.11%Sport, Arts and Culture 33 327 4 789 14.37% 71 986 17 811 24.74%Public Safety and Liaison - - 0.00% 12 532 - 0.00%Economic Development, Environment, Conservation and Tourism 5 210 2 000 38.39% 31 057 15 237 49.06%Education & Training 80 000 10 045 12.56% 80 000 55 690 69.61%Local Government and Traditional Affairs 69 000 13 444 19.48% 288 700 73 320 25.40%Public Works, Roads and Transport 520 983 136 373 26.18% 744 635 269 617 36.21%Social Development 42 107 31 431 74.65% 29 320 8 855 30.20%Agriculture and Rural Development 120 015 24 004 20.00% 23 958 19 445 81.16%

Total Infrastructure Expenditure 931 372 242 778 26.07% 1 766 289 910 708 51.56%

Approved Budget 2012/13

Actual Expenditure

as at 31/12/2012

% Spent of Budget 2012/13

Infrastructure Allocations (excludes conditional grants) within the North West Provincial Departments

Approved Budget 2013/14

Actual Expenditure

as at 31/12/2013

% Spent of Budget 2013/14

NWPG Expenditure as at NWPG Expenditure as at 31 December 201331 December 2013

per Provincial Departmentper Provincial Department

Slide 13

The December 2013 in-year monitoring report reflects the department’s spending of R208 million or 57.90 percent. This spending trend is 17.10 percent below the estimated mark of 75 percent.

OFFICE OF THE PREMIER OFFICE OF THE PREMIER SPENDING AT 31 DEC 13SPENDING AT 31 DEC 13

AEPRE Actual Percentage IYM ProjectedOriginal Total Adjustment Expenditure of budget (Over)/UnderBudget Adjustment Budget as at spent Expenditure

2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

1. Administration 61 746 5 993 67 739 50 859 75.08% - 2. Institutional Development 121 792 94 394 216 186 112 139 51.87% - 3. Policy and Governance 76 131 (312) 75 819 45 277 59.72% -

259 669 100 075 359 744 208 275 57.90% -

AEPRE Actual Percentage IYM ProjectedOriginal Shifts/ Adjustment Expenditure of budget (Over)/UnderBudget Virements Budget as at spent Expenditure

2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

133 712 28 795 162 507 101 106 62.22% - 31 948 4141 36 089 30 153 83.55% - 77 252 70 710 147 962 74 405 50.29% -

Interest on Rent on Land - 1 1 - 0.00% - Sub-total: Current 242 912 103 647 346 559 205 664 59.35% - Capital Expenditure

16 757 (3 572) 13 185 2 611 19.78% - - - - - – - - - - - – -

Sub-total: Capital 16 757 (3 572) 13 185 2 611 0.00% - Total Expenditure 259 669 100 075 359 744 208 275 57.90% -

Transfer PaymentsGoods and Services

Programme


Total

Current ExpenditureCompensation of employees

EquipmentLand and BuildingsOther Capital Expenditure


PROVINCIAL LEGISLATURE PROVINCIAL LEGISLATURE SPENDING AT 31 DEC 13SPENDING AT 31 DEC 13


2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

1. Administration 91 747 1 545 93 292 63 010 64.46% (4 455) 2. Member's Salaries 26 226 - 26 226 65 017 247.91% - 3. Parliamentary Operations 99 169 18 455 117 624 18 633 16.46% 4 455

217 142 20 000 237 142 146 660 61.84% -

Total AEPRE Actual Percentage IYM ProjectedOriginal adjustment Adjustment Expenditure of budget (Over)/UnderBudget appropriation Budget as at spent Expenditure

2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

89 430 6 000 95 430 75 281 78.89% - 36 096 8 839 44 935 21 035 46.81% - 79 711 5 161 84 872 45 151 53.20% 779

Interest on Rent on Land - - - - – - Sub-total: Current 205 237 20 000 225 237 141 467 62.81% 779 Capital Expenditure

1 905 450 2 355 3 121 132.53% (766) - - - - – -

10 000 (450) 9 550 2 072 21.70% (13) Sub-total: Capital 11 905 - 11 905 5 193 43.62% (779) Total Expenditure 217 142 20 000 237 142 146 660 61.84% -

Programme


Land and BuildingsOther Capital Expenditure

Total


Equipment


Current Expenditure

The December 2013 in-year monitoring report reflects the department’s spending of R6.4 billion or 78.25 percent. This spending is 3.25 percent above the estimated mark of 75 percent and the department projects to overspend with R218 million.

HEALTHHEALTHSPENDING AT 31 DEC 13SPENDING AT 31 DEC 13


2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

1. Administration 251 730 - 251 730 193 094 76.71% (7 354) 2. District Health Services 3 991 295 39 061 4 030 356 3 091 052 76.69% (129 773) 3. Emergency Medical Services 255 849 - 255 849 181 928 71.11% (11 622) 4. Provincial Hospital Services 1 901 532 56 860 1 958 392 1 548 419 79.07% (89 647) 5. Central Hospital Services 224 470 18 915 243 385 179 323 73.68% - 6. Health Sciences and Training 303 314 13 935 317 249 248 013 78.18% 7 467 7. Health Care Support Services 128 869 2 268 131 137 93 302 71.15% 2 424 8. Health Facilities Management 610 222 404 702 1 014 924 883 987 87.10% 10 711

7 667 281 535 741 8 203 022 6 419 118 78.25% (217 794)


2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

4 405 847 295 586 4 701 433 3 619 445 76.99% (157 565) 207 465 (88 537) 118 928 110 955 93.30% (5 101)

2 422 097 (94 983) 2 327 114 1 783 348 76.64% (55 126) Interest on Rent on Land 1 421 18 1 439 275 18.68% (2)

Sub-total: Current 7 036 830 112 084 7 148 914 5 514 023 77.13% (217 794) Capital Expenditure

141 719 8 955 150 674 73 416 48.68% - 488 732 414 702 903 434 831 679 92.06% -

- - - - – - Sub-total: Capital 630 451 423 657 1 054 108 905 095 85.85% - Total Expenditure 7 667 281 535 741 8 203 022 6 419 118 78.25% (217 794)


Compensation of employeesCurrent Expenditure


EquipmentLand and Buildings


Programme

Total

The 2013/14 budget for conditional grants is R1.7 billion (inclusive of the R55.6 million approved conditional grant rollovers) with the rate of expenditure amounting to 79.24 percent or R1.4 billion, which is an increase of 17.72 percent increase when compared to the same period last year when expenditure was at 61.52 percent.

HEALTH – C/GRANTSHEALTH – C/GRANTSSPENDING AT 31 DEC 13SPENDING AT 31 DEC 13

The departmental spending on conditional grants is on track, however, the spending on the National Health Insurance Grant of 61.93 percent is below par and the department was urged to address any challenges that may slow down on improving expenditure.


Revenue Act 2013/2014

Provincial Rollovers Approved

from 2012/2013

Shifts / Virements 2013/2014

Adjusted Budgeted Amount

2013/2014

Actual Expenditure year-to-date 31/12/2013

Percentage of Budget spent

to date 31/12/2013

R'000 R'000 R'000 R'000 R'000 %

Department of HealthHealth Facility Revitalisation Grant (5A) 496 121 34 702 - 530 823 433 236 81.62%

Hospital Revitalisation & HMQI (5) 428 258 34 702 (65 900) 397 060 311 775 72.80%

Health Infrastructure Grant (5) 67 863 - 65 900 133 763 121 461 90.80%

Health Professions Training and Development (4) 98 666 - - 98 666 79 725 80.80%Comprehensive HIV and Aids (5) 825 302 - - 825 302 653 720 79.21%National Tertiary Services (4) 224 470 18 915 - 243 385 179 490 73.75%EPWP Grant to Provinces (Social Sector) (5) 24 765 - - 24 765 20 310 82.01%National Health Insurance grant (5) 4 850 2 024 - 6 874 4 257 61.93%Total: Department of Health 1 674 174 55 641 - 1 729 815 1 370 738 79.24%

The department’s infrastructure budget, inclusive of the approved rollovers, amounts to R484 million with spending of 93.11 percent or R450 million.

This spending is a 59.04 percent increase when compared to the same period last year when 34.07 percent spending was recorded.

HEALTH - HEALTH - INFRASTRUCTUREINFRASTRUCTURE

SPENDING AT 31 DEC 13SPENDING AT 31 DEC 13

Spending on some infrastructure programmes (Health Routine Maintenance and Community Health Centres) are below the estimated target of 75 percent as at 31 December 2013.

NORTH WEST DEPARTMENTSProvincial Earmarked

Funds 2013/2014

Additional Funds or (Funds

Surrender & Shifts) 2013/2014

AEPRE Adjusted Budget.

2013/2014


Percentage of Adjusted Budget

spent to date 31/12/2013

R'000 R'000 R'000 R'000 %

Department of Health

Health Routine Maintenance 73 243 (20 000) 53 243 34 976 65.69%Clinic Building 33 858 - 33 858 30 048 88.75%Community Health Centres (CHC) 7 000 - 7 000 709 10.13%Office Park - 390 000 390 000 385 000 98.72%Total Health 114 101 370 000 484 101 450 733 93.11%


SPORT, ARTS AND CULTURE SPORT, ARTS AND CULTURE (DSAC)(DSAC)



2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

1. Management and Administration 83 436 (6 245) 77 191 52 251 70.71% - 2. Cultural Affairs 113 777 20 434 134 211 90 513 67.44% - 3. Library and Archives Services 124 000 (4 465) 119 535 65 080 54.44% - 4. Sports and Recreation 144 669 35 652 180 321 105 886 57.67% -

465 882 45 376 511 258 313 730 61.36% -


2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

183 765 (2 158) 181 607 125 321 69.01% - 82 214 14 980 97 194 71 268 73.33% -

161 988 28 699 190 687 90 883 47.86% - Interest on Rent on Land 110 540 650 540 83.08% -

Sub-total: Current 428 077 42 061 470 138 288 012 61.37% - Capital Expenditure

8 777 (2 719) 6 058 3 555 51.84% - 29 028 6 034 35 062 22 163 63.21% -

- - - - – - Sub-total: Capital 37 805 3 315 41 120 25 718 61.35% - Total Expenditure 465 882 45 376 511 258 313 730 61.36% -


Total


Equipment

Programme



Current Expenditure

The 2013/14 budget for conditional grants is R112 million (inclusive of the R5.8 million approved conditional grant rollovers) with the rate of expenditure amounting to 53.42 percent or R60 million.

Spending has increased with 6.37 percent when compared to the same period last year when expenditure was at 47.05 percent.

DSAC – C/GRANTSDSAC – C/GRANTSSPENDING AT 31 DEC 13SPENDING AT 31 DEC 13

The departmental spending on all conditional grants below is below par and the department was urged to address any challenges that may slow down on improving expenditure trends.

Provincial Department




from 2012/2013


2013/2014



to date 31/12/2013

R'000 R'000 R'000 R'000 %

Department of Sport, Arts and CultureMass Sport and Recreation Participation Programme Grant (5) 41 596 1 237 42 833 21 499 50.19%

Community Library Services Grant (5) 64 058 4 572 68 630 38 155 55.60%

EPWP Grant to Provinces (Social Sector) (5) 870 - 870 356 40.92%Total: Department of Sport, Arts and Culture 106 524 5 809 112 333 60 010 53.42%

The department’s infrastructure budget, inclusive of the approved rollovers, amounts to R72 million with 24.74 percent expenditure. This is an increase of 10.37 percent when compared to the 14.37 percent spending for the same period last year.

DSAC - INFRASTRUCTUREDSAC - INFRASTRUCTURESPENDING AT 31 DEC 13SPENDING AT 31 DEC 13

Spending on most infrastructure programmes are below the estimated target of 75 percent as at 31 December 2013, with no spending recorded in respect of the Museums, Artificial Turfs and Erection of Statues.


Funds 2013/2014

Earmarked Funds Rollovers from 2012/2013




2013/2014




R'000 R'000 R'000 R'000 R'000 %

Sports, Arts and Culture

Library 8 500 - 1 000 9 500 4 678 49.24%Maintenance of Libraries - - 3 000 3 000 426 14.20%Infrastructure Sport:Upgrading & Addition/ Multipurpose Sport 11 586 4 000 (1 200) 14 386 11 943 83.02%Stadium 4 000 - 2 500 6 500 764 11.75%Museum 4 000 - (400) 3 600 - 0.00%Artificial Turfs - - 32 000 32 000 - 0.00%Erection of Statue (B Molokwane) - - 3 000 3 000 - 0.00%Total: Sport, Arts and Culture 28 086 4 000 39 900 71 986 17 811 24.74%


PUBLIC SAFETY BRANCH PUBLIC SAFETY BRANCH SPENDING AT 31 DEC 13SPENDING AT 31 DEC 13


2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

1. Management Administration 126 427 (1 184) 125 243 87 652 69.99% 1 864 2. Civilian Oversight 24 698 (3 434) 21 264 12 580 59.16% 476 3. Transport Regulation 286 863 11 150 298 013 209 385 70.26% (5 146) 4. Crime Prevention and Community Police relation 13 624 4 000 17 624 6 670 37.85% 2 806

451 612 10 532 462 144 316 287 68.44% -


2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

309 648 4 705 314 353 232 055 73.82% - 1 910 524 2 434 2 929 120.34% (807)

127 532 (12 980) 114 552 79 233 69.79% 807 Interest on Rent on Land - - - - – -

Sub-total: Current 439 090 (7 751) 431 339 314 217 73.02% - Capital Expenditure

11 038 7 062 18 100 2 012 10.52% - 1 484 11 221 12 705 58 0.46% -


Programme



Current Expenditure

Total




The department’s infrastructure budget, amounts to R12.5 million with zero expenditure as at 31 December 2013 .

PUBLIC SAFETY - PUBLIC SAFETY - INFRASTRUCTUREINFRASTRUCTURE



Funds 2013/2014




2013/2014




R'000 R'000 R'000 R'000 %

Public Safety Branch

Upgrading of Weighbridges 16 000 (9 468) 6 532 - 0.00%Upgrading of Vehicle Testing Centres 4 600 - 4 600 - 0.00%Upgrading of Driving License Testing Centres 1 400 - 1 400 - 0.00%Total: Public Safety Liaison 22 000 (9 468) 12 532 - 0.00%


ECONOMIC DEV., ENVIRONMENT. ECONOMIC DEV., ENVIRONMENT. CONSERVATION & TOURISM CONSERVATION & TOURISM

(DEDECT)(DEDECT)SPENDING AT 31 DEC 13SPENDING AT 31 DEC 13


2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

1. ADMINISTRATION 66 593 1 052 67 645 51 751 76.50% - 2. INTEGRATED SERVICES 27 331 7 500 34 831 28 679 82.34% - 3. TRADE AND SECTOR DEVELOPMENT 68 622 (2 277) 66 345 29 725 44.80% - 4. BUSINESS REGULATION AND GOVERNANCE 48 172 13 655 61 827 55 165 89.22% - 5. ECONOMIC PLANNING 4 535 1 700 6 235 4 008 64.28% - 6. TOURISM 150 137 48 529 198 666 177 846 89.52% - 7. ENVIRONMENTAL SERVICES 120 672 (381) 120 291 57 848 48.09% -

486 062 69 778 555 840 405 022 72.87% -


2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

136 409 (2 995) 133 414 93 029 69.73% (21 270) 253 268 85 348 338 616 263 135 77.71% 21 241

95 103 (37 817) 57 286 40 065 69.94% 12 Interest on Rent on Land - 40 40 15 37.50% 17

Sub-total: Current 484 780 44 576 529 356 396 244 74.85% - Capital Expenditure

1 282 4 052 5 334 4 598 86.20% - - 21 150 21 150 4 180 19.76% - - - - - – -

Sub-total: Capital 1 282 25 202 26 484 8 778 33.14% - Total Expenditure 486 062 69 778 555 840 405 022 72.87% -

Programme



Total


Equipment


Current Expenditure

The department’s infrastructure budget, amounts to R31 million with 49.06 percent spending. This is an increase in spending of 10.67 percent when compared to the previous year when spending was at 38.39 percent.

DEDECT - INFRASTRUCTUREDEDECT - INFRASTRUCTURESPENDING AT 31 DEC 13SPENDING AT 31 DEC 13


Funds 2013/2014




2013/2014




R'000 R'000 R'000 R'000 %

Economic Develop, Environment, Conservation and Tourism

Taung Skull 38 850 (18 850) 20 000 4 180 20.90%Light Industrial Parks (Maintenance) (Factories, Workshops, Offices) 11 057 - 11 057 11 057 100.00%Total: Economic Develop, Environment, Conservation and Tourism 49 907 (18 850) 31 057 15 237 49.06%

The December 2013 in-year monitoring report reflects the department’s spending of R274 million or 66.57 percent. This spending is 8.43 percent below the estimated mark of 75 percent and the department projects to underspend with R6 million.

FINANCEFINANCESPENDING AT 31 DEC 13SPENDING AT 31 DEC 13


2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

1. Administration 104 555 (7 399) 97 156 63 204 65.05% - 2. Sustainable Resource Management 105 728 25 204 130 932 92 418 70.58% 4 000 3. Asset and Liabilities Management 39 169 (690) 38 479 25 995 67.56% - 4 Financial Governance 121 280 23 889 145 169 92 431 63.67% 2 000 5 Information Technology 93 779 (93 779) - 36 – -

464 511 (52 775) 411 736 274 084 66.57% 6 000


2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

261 579 (79 103) 182 476 129 864 71.17% - 511 (189) 322 357 110.87% -

190 210 26 151 216 361 140 621 64.99% 6 000 Interest on Rent on Land 44 (32) 12 2 16.67% -

Sub-total: Current 452 344 (53 173) 399 171 270 844 67.85% 6 000 Capital Expenditure

12 167 398 12 565 3 240 25.79% - - - - - – - - - - - – -

Sub-total: Capital 12 167 398 12 565 3 240 25.79% - Total Expenditure 464 511 (52 775) 411 736 274 084 66.57% 6 000


Total


Equipment

Programme



Current Expenditure

The December 2013 in-year monitoring report reflects the department’s spending of R8.9 billion or 77.50 percent. This spending trend is 2.5 percent above the estimated mark of 75 percent and the department further projects to overspend with R42 million.

EDUCATIONEDUCATIONSPENDING AT 31 DEC 13SPENDING AT 31 DEC 13


2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

1. Administration 655 982 - 655 982 487 130 74.26% - 2. Public Ordinary School Education 8 590 590 79 732 8 670 322 6 861 231 79.13% (42 000) 3. Independent School Subsidies 24 294 - 24 294 17 834 73.41% - 4. Public Special School Education 288 491 42 100 330 591 256 447 77.57% - 5. Further Education and Training 76 232 358 76 590 54 523 71.19% - 6. Adult Basic Education and Training 159 241 3 000 162 241 113 337 69.86% - 7. Early Childhood Development 326 385 25 880 352 265 256 179 72.72% - 8. Infrastructure Development 601 622 65 837 667 459 460 052 68.93% - 9. Auxiliary and Associated Services 598 557 (16 306) 582 251 422 503 72.56% -

11 321 394 200 601 11 521 995 8 929 236 77.50% (42 000)

Total AEPRE Actual Percentage IYM ProjectedOriginal adjustment Adjustment Expenditure of budget (Over)/UnderBudget appropriation Budget as at 31/12/2013 Expenditure

2013/2014 2013/2014 2013/2014 31/12/2013 to date 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

8 844 040 124 377 8 968 417 6 957 194 77.57% (42 000) 961 075 15 955 977 030 821 197 84.05% - 958 882 15 152 974 034 736 732 75.64% -

Interest on Rent on Land - - - - – - Sub-total: Current 10 763 997 155 484 10 919 481 8 515 123 77.98% (42 000) Capital Expenditure

29 875 (4 859) 25 016 18 073 72.25% - 527 522 49 976 577 498 396 040 68.58% -

- - - - – - Sub-total: Capital 557 397 45 117 602 514 414 113 68.73% - Total Expenditure 11 321 394 200 601 11 521 995 8 929 236 77.50% (42 000)

Programme



Total


Equipment


Current Expenditure

The 2013/14 budget for conditional grants is R1.1 billion (inclusive of the R80.6 million adjustment to conditional grants) with the rate of expenditure being 70.12 percent or R759 million. This is an increase in spending of 5.56 percent when compared to the same period last year.

EDUCATION – C/GRANTSEDUCATION – C/GRANTSSPENDING AT 31 DEC 13SPENDING AT 31 DEC 13

Spending on all conditional grants, apart from the National School Nutrition Grant, are all below the estimated 75 percent mark at this stage. The spending on the Technical Secondary Schools Recapitalization Grant of 27.62 percent and the Dinaledi School Grant of 34.40 percent are the lowest and the department was urged to address any challenges that may slow down on improving expenditure.





from 2012/2013

Additional Funding

2013/2014


2013/2014



to date 31/12/2013

R'000 R'000 R'000 R'000 R'000 %

Department of Education and TrainingNational School Nutrition Programme (5) 348 912 5 946 - 354 858 274 057 77.23%

HIV and AIDS (Life Skills Education) (5) 16 122 - - 16 122 8 849 54.89%

Further Education & Training College (4) 76 232 - 358 76 590 54 240 70.82%

Education Infrastructure grant (4) 521 622 65 837 - 587 459 404 330 68.83%

Technical Secondary Schools Recapitalisation Grant (5) 18 850 6 343 - 25 193 6 959 27.62%

Dinaledi School Grant (5) 11 147 2 222 - 13 369 4 599 34.40%

EPWP Incentive Grant to Provinces (Social Sector) (5) 8 804 - - 8 804 5 895 66.96%Total: Department of Education and Training 1 001 689 80 348 358 1 082 395 758 929 70.12%

The department’s infrastructure budget, inclusive of the approved rollovers, amounts to R80 million with 69.61 percent expenditure as at 31 December 2013.

The spending has increased with 57.05 percent when compared to the same period last year when expenditure was at 12.56 percent.

EDUCATION - EDUCATION - INFRASTRUCTUREINFRASTRUCTURE


Spending on the School Building Programme Maintenance is below the estimated target of 75 percent as at 31 December 2013. Spending on the Full Service Schools Infrastructure at 84.08 percent is high and the department should put precautionary measures in place to prevent overspending.

NORTH WEST DEPARTMENTS


2013/2014




R'000 R'000 %

School Building Programme: Maintenance 60 000 38 874 64.79%Full Service Schools Infrastructure (Public Ordinary Special Sch) 20 000 16 816 84.08%Total: Education and Training 80 000 55 690 69.61%


LOCAL GOVERNMENT AND LOCAL GOVERNMENT AND TRADITIONAL AFFAIRS (DLGTA)TRADITIONAL AFFAIRS (DLGTA)



2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

1. Administration 72 991 3 320 76 311 58 048 76.07% - 2. Local Governance 165 588 (55 550) 110 038 84 039 76.37% - 3. Development and Planning 96 678 213 600 310 278 86 914 28.01% - 4. Traditional Leaders 95 703 20 123 115 826 72 127 62.27% -

430 960 181 493 612 453 301 128 49.17% -


2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

235 032 (4 939) 230 093 172 156 74.82% - 77 539 210 000 287 539 80 872 28.13% (548)

110 487 (42 272) 68 215 40 909 59.97% 548 Interest on Rent on Land - - - - – -

Sub-total: Current 423 058 162 789 585 847 293 937 50.17% - Capital Expenditure -

349 10 157 10 506 435 4.14% - 7 553 8 547 16 100 6 756 41.96% -


Programme



Total


Equipment


Current Expenditure

The department’s infrastructure budget, amounts to R288.7 million with 25.40 percent spending as at 31 December 2013.

The spending has increased with 5.92 percent when compared to the same period last year when expenditure was at 19.48 percent.

DLGTA - INFRASTRUCTUREDLGTA - INFRASTRUCTURESPENDING AT 31 DEC 13SPENDING AT 31 DEC 13


Funds 2013/2014





2013/2014




R'000 R'000 R'000 R'000 R'000 %

Local Government and Traditional Affairs

New / Upgrading TL's Properties 7 468 7 758 (2 726) 12 500 6 756 54.05%Bucket Replacement /Water and Sanitation Programme 52 600 - 150 000 202 600 16 564 8.18%Disaster Management Fund 10 000 - 3 600 13 600 10 000 73.53%Premiers's Legacy Projects 60 000 - - 60 000 40 000 66.67%Total: Local Government and Traditional Affairs 130 068 7 758 150 874 288 700 73 320 25.40%

The spending on respect of the Bucket Replacement/ Water & Sanitation Programme is the lowest at this stage, however the department was advised to fast-track the implementation of the programme.

The December 2013 in-year monitoring report reflects the department’s spending of R2.3 billion or 60.47 percent. This spending trend is 14.53 percent below the estimated mark of 75 percent.

PUBLIC WORKS, ROADS AND PUBLIC WORKS, ROADS AND TRANSPORT (DPWRT)TRANSPORT (DPWRT)



2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

1. Administration 179 359 2 000 181 359 124 109 68.43% - 2. Public Works Infrastructure 926 992 3 967 930 959 572 229 61.47% - 3. Transport Infrastructure 1 268 860 208 522 1 477 382 876 258 59.31% - 4. Transport Operation 908 038 46 958 954 996 622 503 65.18% - 5. Community Based Programme 110 250 101 500 211 750 76 569 36.16% -

3 393 499 362 947 3 756 446 2 271 668 60.47% -


2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

739 385 500 739 885 519 745 70.20% - 886 407 (3 987) 882 420 619 508 70.21% - 898 782 47 813 946 595 553 281 58.47% -

Interest on Rent on Land - - - - – - Sub-total: Current 2 524 574 44 326 2 568 900 1 692 534 65.89% - Capital Expenditure

12 822 72 925 85 747 24 396 28.45% - 856 103 245 696 1 101 799 554 738 50.35% -

- - - - – - Sub-total: Capital 868 925 318 621 1 187 546 579 134 48.77% - Total Expenditure 3 393 499 362 947 3 756 446 2 271 668 60.47% -

Total


Programme


Compensation of employeesCurrent Expenditure

Land and BuildingsEquipment


The 2013/14 budget for conditional grants is R907 million (inclusive of the R165 million adjustment to conditional grants) with the rate of expenditure amounting to 61.90 percent or R561 million.

This is an increase in spending of 32.86 percent when compared to the same period in the previous year when spending was at 29.04 percent.

DPWRT – C/GRANTSDPWRT – C/GRANTSSPENDING AT 31 DEC 13SPENDING AT 31 DEC 13

Spending on all conditional grants, apart from the EPWP Grant, are below par and the department was urged to address any challenges that may slow down on improving expenditure.





from 2012/2013

Additional Funding

2013/2014



2013/2014



to date 31/12/2013

R'000 R'000 R'000 R'000 R'000 R'000 %

Department of Public Works, Roads and TransportEPWP Integrated Grant for Provinces (Infrastructure Sector) (5 A) 17 266 - - (4 100) 13 166 9 891 75.13%Provincial Roads Maintenance Grant (4) 639 923 146 645 21 982 - 808 550 507 100 62.72%Public Transport Operations Grant (4) 85 082 - - - 85 082 44 341 52.12%Total: Department of Public Works, Roads and Transport 742 271 146 645 21 982 (4 100) 906 798 561 332 61.90%

The department’s infrastructure budget inclusive of the approved rollovers amounts to R744.6 million with 36.21 percent expenditure, which is an increase of 10.03 percent when compared to 26.18 percent spending for the same period last year.

DPWRT - DPWRT - INFRASTRUCTUREINFRASTRUCTURE


The average spending on the infrastructure programmes within the Public Works Sector is at 26.34 percent as at 31 December 2013, with zero spending recorded in respect of the Projects such as War on Poverty and to build internal Technical Capacity within the department as well as low spending on Road Infrastructure.


Funds 2013/2014





2013/2014




R'000 R'000 R'000 R'000 R'000 %

Public Works, Roads and Transport

New Government Buildings 89 962 21 269 (34 200) 77 031 30 294 39.33%War on Poverty 50 000 - - 50 000 - 0.00%Technical Capacity (Equitable Share Funding) 10 000 - - 10 000 - 0.00%Government Building-Major Renovations (Upgrades and Additional) 90 515 - - 90 515 12 856 14.20%Government Building- Rehabilitation and Refurbishment 66 214 - - 66 214 10 629 16.05%Public Works Infrastructure Maintenance 44 459 - - 44 459 35 316 79.43%

Public Works Sector 351 150 21 269 (34 200) 338 219 89 095 26.34%

Road Infrastructure 131 500 40 000 - 171 500 17 344 10.11%Roads Infrastructure Maintenance /Yellow Fleet (M) 180 211 19 114 35 591 234 916 163 178 69.46%

Road and Transport Sector 311 711 59 114 35 591 406 416 180 522 44.42%

Total: Public Works, Roads and Transport 662 861 80 383 1 391 744 635 269 617 36.21%

The December 2013 in-year monitoring report reflects the department’s spending of R761 million or 71.81 percent. This spending is 3.19 percent below the estimated mark of 75 percent and the department projects to underspend with R4.4 million.

SOCIAL DEVELOPMENTSOCIAL DEVELOPMENTSPENDING AT 31 DEC 13SPENDING AT 31 DEC 13


2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

1. Administration 154 876 5 596 160 472 119 316 74.35% (2 512) 2. Social Welfare Services 786 591 10 456 797 047 567 407 71.19% 31 3. Development and Research 132 020 (29 078) 102 942 68 071 66.13% 6 911 4. Special Programmes 8 643 (8 643) - 6 693 – -

1 082 130 (21 669) 1 060 461 761 487 71.81% 4 430


2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

535 765 41 266 577 031 408 429 70.78% - 289 661 (59 631) 230 030 169 617 73.74% 6 625 224 278 (6 707) 217 571 169 583 77.95% (2 219)

Interest on Rent on Land - - - - – - Sub-total: Current 1 049 704 (25 072) 1 024 632 747 629 72.97% 4 406 Capital Expenditure

5 259 5 250 10 509 8 447 80.20% 24 27 167 (1 847) 25 320 5 411 21.37% -

- - - - – - Sub-total: Capital 32 426 3 403 35 829 13 858 38.65% 24 Total Expenditure 1 082 130 -21 669 1 060 461 761 487 71.81% 4 430

Goods and Services

Programme


Total

Current ExpenditureCompensation of employeesTransfer Payments

EquipmentLand and BuildingsOther Capital Expenditure

The 2013/14 budget for conditional grants is R16.4 million with the rate of expenditure amounting to 69.11 percent or R11.3 million.


SOCIAL DEVELOPMENT – SOCIAL DEVELOPMENT – C/GRANTSC/GRANTS


The departmental spending on conditional grants below the estimated mark of 75 percent and the department was urged to address any challenges that may slow down on improving expenditure as the department underspent last year on this grant with R2.8 million.



2013/2014



to date 31/12/2013

R'000 R'000 %

Department of Social DevelopmentEPWP Grant to Provinces (Social Sector) (5) 16 431 11 356 69.11%

Total: Department of Social Development 16 431 11 356 69.11%

The department’s infrastructure budget, inclusive of the approved rollovers, amounts to R29.3 million with 30.20 percent expenditure as at 31 December 2013.

SOCIAL DEVELOPMENT - SOCIAL DEVELOPMENT - INFRASTRUCTUREINFRASTRUCTURE


Apart from the funds allocated to address Maintenance, spending on all other infrastructure programmes are below the estimated target of 75 percent, with no spending being incurred in respect of the Taung Inpatient Treatment Centre and the Vryburg Victim Empowerment Centre.


Funds 2013/2014





2013/2014




R'000 R'000 R'000 R'000 R'000 %

Social Development

Reamogetswe Secure Care Centres - 2 433 - 2 433 133 5.47%Vryburg Victim Empowerment Centre - 225 - 225 - 0.00%Itsoseng Protective Workshop 2 499 2 495 - 4 994 3 465 69.38%Taung Inpatient Treatment Centre 16 100 - (7 000) 9 100 - 0.00%Taung Old Age Homes 8 568 - - 8 568 1 813 21.16%Maintenance 4 000 - - 4 000 3 444 86.10%Total Social Development 31 167 5 153 (7 000) 29 320 8 855 30.20%

The December 2013 in-year monitoring report reflects the department’s spending of R570 million or 64.17 percent. This spending trend is 10.83 percent below the estimated mark of 75 percent and the department projects to underspend with R36.5 million.

AGRICULTURE AND RURAL AGRICULTURE AND RURAL DEVELOPMENTDEVELOPMENT



2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

1. Administration 188 604 2 239 190 843 143 400 75.14% - 2. Agriculture Support Services 599 753 60 018 659 771 397 340 60.22% 36 555 3. Rural Development 46 448 (8 214) 38 234 29 593 77.40% -

834 805 54 043 888 848 570 333 64.17% 36 555


2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

415 511 20 018 435 529 301 380 69.20% 6 355 229 152 34 341 263 493 129 358 49.09% 30 432 182 911 (3 292) 179 619 130 958 72.94% 389

Interest on Rent on Land - - - 11 16.18% 30 Sub-total: Current 827 574 51 067 878 641 561 707 63.93% 37 206 Capital Expenditure

6 736 2 976 9 712 8 149 83.91% (650) - - - - – - 495 - 495 477 96.36% (1)

Sub-total: Capital 7 231 2 976 10 207 8 626 84.51% (651) Total Expenditure 834 805 54 043 888 848 570 333 64.17% 36 555

Programme



Total


Equipment


Current Expenditure

The 2013/14 budget for conditional grants is R269 million (inclusive of the R45 million adjustment to conditional grants) with the rate of expenditure amounting to 46.79 percent or R126 million and summarized per grant as follows: -

DARD – C/GRANTSDARD – C/GRANTSSPENDING AT 31 DEC 13SPENDING AT 31 DEC 13

Spending on all conditional grants, apart from the Illima/Letsema Grant, are below par and the department is urged to address any challenges that may slow down on improving expenditure.

The department states the reason for underspending of R36 million due to the delay in the appointment of extension officers for CASP and the provision of retention funds for the infrastructure projects. CASP only spent 48.25 percent as at 31/12/2013.





from 2012/2013

Additional Funding

2013/2014



2013/2014



to date 31/12/2013

R'000 R'000 R'000 R'000 R'000 R'000 %

Department of Agriculture and Rural DevelopmentLand Care Programme: Poverty Relief and Infrastructure Development (5) 10 552 - - - 10 552 6 261 59.33%

Comprehensive Agricultural Support Programme [CASP] Grant (4) 169 663 1 051 - - 170 714 82 370 48.25%

Ilima/Letsema Projects (5) 43 845 - - - 43 845 34 116 77.81%

Emergency Relief Fund - - 43 630 - 43 630 3 244 7.44%

EPWP Integrated Grant for Provinces (Infrastructure Sector) (5 A) - - - 550 550 - 0.00%

Total: Department of Agriculture and Rural Development 224 060 1 051 43 630 550 269 291 125 991 46.79%

The department’s infrastructure budget, inclusive of the approved rollovers, amounts to R24 million with 81.16 percent expenditure as at 31 December 2013.

This is an increase in spending of 61.16 percent when compared to the same period in the previous year when spending was at 20 percent.

DARD - INFRASTRUCTUREDARD - INFRASTRUCTURESPENDING AT 31 DEC 13SPENDING AT 31 DEC 13

Spending is above target and the department was advised to monitor the spending performances to prevent overspending.


Funds 2013/2014




2013/2014




R'000 R'000 R'000 R'000 %Agriculture and Rural Development

Post Settlement Support 12 080 (6 500) 5 580 4 033 72.28%Rural Development Programme 33 378 (15 000) 18 378 15 412 83.86%Total: Agriculture and Rural Development 45 458 (21 500) 23 958 19 445 81.16%

The December 2013 in-year monitoring report reflects the department’s spending of R1.2 billion or 80.11 percent. This spending trend is 5.11 percent above the estimated mark of 75 percent.

HUMAN SETTLEMENTS HUMAN SETTLEMENTS BRANCHBRANCH



2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

1. Administration 126 894 27 603 154 497 116 440 75.37% - 2. Housing Needs, Research and Planning 95 836 - 95 836 11 681 12.19% - 3. Housing Development 1 268 378 - 1 268 378 1 088 457 85.81% -

1 491 108 27 603 1 518 711 1 216 578 80.11% -


2013/2014 2013/2014 2013/2014 31/12/2013 31/12/2013 31/12/2013R' 000 R' 000 R' 000 R' 000 % R'000

123 149 (4 400) 118 749 85 736 72.20% - 1 300 238 400 1 300 638 1 054 411 81.07% -

64 221 32 103 96 324 74 351 77.19% - Interest on Rent on Land - - - - – -

Sub-total: Current 1 487 608 28 103 1 515 711 1 214 498 80.13% - Capital Expenditure

3 500 (500) 3 000 2 080 69.33% - - - - - – - - - - - – -

Sub-total: Capital 3 500 (500) 3 000 2 080 69.33% - Total Expenditure 1 491 108 27 603 1 518 711 1 216 578 80.11% -



Goods and ServicesTransfer Payments


Current Expenditure

Programme


Total

The 2013/14 budget for conditional grants is R1.2 billion with the rate of expenditure amounting to 85.85 percent or R1.1 billion.


HUMANS SETTLEMENTS – HUMANS SETTLEMENTS – C/GRANTSC/GRANTS


No spending is recorded in respect of the EPWP grant and the department was urged to address any challenges that may slow down on improving expenditure






2013/2014



to date 31/12/2013

R'000 R'000 R'000 R'000 %

Department of Human Settlements, Public Safety and Liaison

Integrated Housing and Human Settlement Development Grant (5) 1 224 537 - 1 224 537 1 053 822 86.06%

EPWP Integrated Grant for Provinces (Infrastructure Sector) (5 A) - 3 000 3 000 - 0.00%

Total: Department of Human Settlements, Public Safety and Liaison

1 224 537 3 000 1 227 537 1 053 822 85.85%

NWPGNWPG Provincial Own Revenue Provincial Own Revenue as at 31 December 2013as at 31 December 2013

per Provincial Departmentper Provincial Department

Slide 43

The Actual Provincial Revenue collected as at 31 December 2013 amounts to R656.5 million or 79.87 percent, which is 4.87 above the estimated 75 percent mark.

At this stage an over collection in Provincial Own revenue is projected to the tune of R38.9 million.

PROVINCIAL OWN PROVINCIAL OWN REVENUEREVENUE

AS AT 31 DEC 13AS AT 31 DEC 13

0 Actual Projection Total "Total"

Main Adjusted Revenue 01 Jan Estimated (Over)/Under

2013/14 2013/14 Collected to end of Revenue available

31/12/2013 Mar 2014 2013/14 funds

R'000 R'000 R'000 R'000 R'000 R'000

1 BASIC EDUCATION AND TRAINING 16 227 16 227 15 040 2 250 17 290 (1 063) 2 HEALTH 62 455 62 455 41 065 21 390 62 455 - 3 SOCIAL DEVELOPMENT 706 706 2 405 165 2 570 (1 864) 4 OFFICE OF THE PREMIER 368 368 421 32 453 (85) 5 PROVINCIAL LEGISLATURE - - - - - - 6 SPORT, ARTS AND CULTURE 945 945 1 058 136 1 194 (249) 7 PUBLIC SAFETY AND LIAISON 314 213 314 213 251 672 72 054 323 726 (9 513) 8 ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION AND TOURISM 96 730 96 730 71 824 24 906 96 730 - 9 FINANCE 101 350 101 350 121 697 3 305 125 002 (23 652)

10 LOCAL GOVERNMENT AND TRADITIONAL AFFAIRS 1 347 1 347 1 155 192 1 347 - 11 PUBLIC WORKS, ROADS AND TRANSPORT 219 844 219 844 141 423 78 421 219 844 - 12 AGRICULTURE AND RURAL DEVELOPMENT 7 690 7 690 7 758 1 549 9 307 (1 617) 13 HUMAN SETTLEMENTS 231 231 1 070 36 1 106 (875)

Total expenditure 822 106 822 106 656 588 204 436 861 024 (38 918)

Appropriation


The following provides the detail in Revenue categories in which over collection of Revenue is mainly with regards to Interest and Sales of Goods & Services.

PROVINCIAL OWN PROVINCIAL OWN REVENUEREVENUE

AS AT 31 DEC 13AS AT 31 DEC 13

0 Actual Projection Total "Total"

Main Adjusted Revenue 01 Jan Estimated (Over)/Under

2013/14 2013/14 Collected to end of Revenue available

31/12/2013 Mar 2014 2013/14 funds

R'000 R'000 R'000 R'000 R'000 R'000

Provincial own receipts by economic classification

Tax receipts 368 552 368 552 282 680 85 872 368 552 -

Casino taxes 82 500 82 500 64 230 18 270 82 500 - Horse racing taxes 5 488 5 488 3 945 1 543 5 488 - Liquor licences 2 754 2 754 896 1 858 2 754 - Motor vehicle licences 277 810 277 810 213 609 64 201 277 810 -

Sales of goods and services other than capital assets 308 976 308 976 224 806 95 036 319 842 (10 866)

of which: Health patient fees 43 000 43 000 26 907 16 093 43 000 -

Transfers received - - - - - -

Fines, penalties and forfeits 16 322 16 322 11 995 4 959 16 954 (632)

Interest, dividends and rent on land 104 479 104 479 118 174 6 522 124 696 (20 217)

Sales of capital assets 6 400 6 400 179 6 221 6 400 -

Financial transactions in assets and liabilities 17 377 17 377 18 754 5 826 24 580 (7 203)

Total provincial own receipts 822 106 822 106 656 588 204 436 861 024 (38 918)

Appropriation


In an attempt to deal with the challenges that impede proper facilitation of the budget planning, monitoring and implementation in 2013/14, the Provincial Treasury found it imperative to initiate and to steer the following interventions:

Establish the Provincial Budget Forum which will aim to improve budget planning and execution by creating a platform to share challenges and identifying best practices and procedures to improve the quality and comprehensiveness of the EPRE and ultimately improve government spending;

Improve the credibility of the Medium Term Fiscal Framework and the scope of practical economic impact analysis coupled with the refinement of expenditure management;

Conduct Quarterly engagements with departments on the provincial management of personnel and the compensation of employees in particular regarding the growth in numbers in non-critical area (support and administration); recruiting staff without sufficient funds in the budget, which is unacceptable and to encourage the appointment of skilled staff and filling the key vacant positions to improve planning and financial skills.

INTERVENTION MEASURESINTERVENTION MEASURES

In an attempt to deal with the challenges that impede proper facilitation of the budget planning, monitoring and implementation in 2013/14, the Provincial Treasury found it imperative to initiate and to steer the following interventions:

Procure the services of TA’s to assist with the implementation of the IDMS in the 4 municipal Districts as well as 3 TA’s in poor performing provincial departments.

Support the Department of Public Works, Roads and Transport to ensure that the R10 m that was allocated for Infrastructure capacity building will enable them to perform their implementing role as custodian of assets.

Continue with the roll out of the IDMS HR Capacity building programme to ensure that sufficient capacity is build to plan and implement Infrastructure in the province. Strengthen financial control and monitoring, thus ensuring the budget allocated is well spent and the value for money initiative is attained.

Support the Provincial Treasury Supply Chain Unit to ensure the roll out of the new Treasury regulations in terms of the construction procurement for the delivery and maintenance of Infrastructure.

INTERVENTION MEASURESINTERVENTION MEASURES

It is recommended that the Select Committee: -

Note

1) The aggregate provincial spending of 73.53 percent, conditional grants of 73.75 percent and infrastructure with 51.56 percent spending as at 31 December 2013.

2) That the projected overspending of R213 million mainly relates to Departments of Health, Education & Training mainly in respect of Compensation of Employees. That although the critical spending pressures have been addressed due to the R1.5 billion adjustment to the provincial budget; it is envisaged that based on the spending trends there will be an overall underspending for the 2013/14 financial year.

3) Departments were requested to review their spending trends with the aim of remaining within budget, determining their ability to absorb and spend funds in the current financial year and reprioritize funding for critical areas without requesting for additional funds.

4) Overspending on the allocated budget is against the PFMA and the Accounting Officers were urged not to commit their department to any liability for which funds have not been appropriated.

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CONCLUSIONCONCLUSION

It is recommended that the Select Committee: -

Note

5) Departments must not to incur expenditure that was not budgeted for or attract any unauthorized or irregular expenditure. Where these practices occur, departments should not hesitate to take the appropriate disciplinary action.

6) Departments must, through reprioritization of their entire budget cover any further shortfalls that may arise after implementation of the additional funding from National and the province during the adjusted estimates process.

7) Provincial departments must spend and remain within their approved budget allocations given the R1.5 billion adjustment to the provincial budget that addresses their critical budget pressures.

8) Where the departments are unable to spend their budgets, these funds should be surrendered to the provincial revenue fund for consideration to be redirected to address key provincial programmes in support of government priorities during this financial year.

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CONCLUSIONCONCLUSION

THANK YOU!

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NWPG Expenditure as at 31 December 2013 Presentation to Select Committee on Finance

Documents

Transcript of NWPG Expenditure as at 31 December 2013 Presentation to Select Committee on Finance