Presentation to SCOF on Conditional Grants and Capital Expenditure

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Presentation to SCOF on Conditional Grants and
Capital Expenditure

• Free State Department of Sport, Arts and Culture

2 September 2009
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CONTENT

• Conditional Grants received by the Department
• Library Services
• Sport and Recreation
• Infrastructure
• General Analysis of Trends
• Plan to Address Shortcomings
• Assessment of Department Monitoring Capacity

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CONDITIONAL GRANTS RECEIVED BY DEPARTMENT
Library Services Siyadlala Legacy School Sport Infrastructure
R000 R000 R000 R000 R000
40 315 7 209 12 307 7 075 74 740
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Library Services
Quarter 1
Transfers (13 of total budget) 5 335
Spending 3 769
Balance 1 566

• Notes
• R710 000 has been committed for the procurement
  of library materials
• The business plan was drafted to such that Q1
  would used to finalize contracts and issue orders
  and that delivery of equipment such as computers,
  photocopiers, security systems would then take
  place in Q2 and Q3.
• The cash flow projection for the business plan
  thus provided for 13 of the grant to be spent
  by end of June, but this was not achieved due to
  the following challenges
• 3 year contracts were processed for ICT
  resources, photocopiers, and library materials
  but put on hold due to a higher decision that, as
  an interim measure, one-year contracts must be
  arranged.
• Posts yet to be filled

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Quarterly analysis of Library Services
Conditional Grant spending
Total Budget Quarter 1 Quarter 1
Compensation of employees 14 182 2 169 15
Goods and Services 18 241 1 233 7
Printing Publications 4 500 574 13
Newspapers Magazines 1 075 - 0
Equipment ltR5 000 Computer other equipment 4 738 9 0
SITA Computer expenses 6 072 460 8
Other expenses Travelling, maintenance, etc. 1 856 190 10
Transfers and subsidies 552 - 0
Capital payments 7 340 367 5
Philippolis Library 3 765 367 10
Computer equipment 415 - 0
Office equipment furniture 1 140 - 0
Security equipment 2 020 - 0
TOTAL 40 315 3 769 9
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Notes on Library Services Expenditure trends

• Appointment of employees
• Target 52 additional staff to be appointed in
  public libraries
• 1st quarter planning and recruitment
• Recruitment delayed due to cost containment
  measures within the province
• Printing and Publications
• Target 50 000 items of library material bought
• Book orders to the value of R867 000 not
  delivered in time for payment
• Newspapers and publications
• Renewal of subscriptions is done during
  October-December
• Computer datalines and maintenance
• - Invoices for computer datalines and
  maintenance of photocopiers
• not received in time for payment before
  30 June 2009 R906 510

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Notes on Library Services Expenditure trends
(cont)

• Philippolis Library
• Department of Public Works, Roads and Transport
  busy arranging a new contract after previous
  contractor defaulted. Challenge is to identify
  local contractors
• Machinery and equipment
• 3 year contracts were processed for ICT
  resources, photocopiers, and library materials
  but put on hold due to a higher decision that, as
  an interim measure, one-year contracts must be
  arranged.
• Number of Libraries served by Conditional Grant
• Library collections upgraded 20 libraries
• ICT Infrastructure 59 libraries
• Photocopiers 30 libraries
• Additional staff 50 libraries
• Infrastructure Renovations, security 10
  libraries

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Notes on Library Services Expenditure trends
(cont)

• Infrastructure
• Upgrade Philippolis Library
• Department of Public Works, Roads and Transport
  busy arranging new sub-contractors
• Challenge to find local contractors
• Upgrade security at 10 libraries
• Delays with arranging contracts because of new
  policy directives on handling infrastructure
  contracts
• Provide 59 libraries with ICT infrastructure
• Procurement delayed due to directive to arrange 3
  year contract and not to use SITA contracts

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Notes on Library Services Expenditure trends
(cont)

• Providing equipment to libraries
• Provide 31 libraries with photocopiers
• Adjudication of bids to be completed
• Provincial capacity expanded
• 7 staff members appointed within Department
• Recruitment delayed due to cost containment
  measures within the province
• Cooperation with municipalities
• Sign MoUs with municipalities
• Busy with negotiations with municipalities

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CONDITIONAL GRANTS SPORT AND RECREATION
Conditional Grant Sport and Recreation South Africa Conditional Grant Sport and Recreation South Africa
Quarter 1
Transfers 7 023
Spending 2 753
Balance 4 270
Siyadlala Legacy School Sport Total
Budget 7 209 12 307 7 075 26 591
Expenditure 720 1 262 771 2 753
Balance 6 489 11 045 6 304 23 838
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Quarterly analysis of Sport and Recreation
Conditional Grant spending
Total Budget Quarter 1 Quarter 1
SIYADLALA 7 209 720 10
Compensation of employees 2 514 405 16
Goods and Services 3 195 315 10
Capital Payments 1 500 - 0
LEGACY 12 307 1 262 10
Compensation of employees 1 263 103 8
Goods and Services 10 044 1 159 12
Capital Payments 1 000 - 0
SCHOOL SPORT 7 075 771 11
Compensation of employees 2 538 690 27
Goods and Services 3 337 81 2
Capital Payments 1 200 - 0
TOTAL 26 591 2 753 10
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Notes on Sport and Recreation Grants

• 3 year contracts for event management and attire
  to be approved during September.
• Due to processes being followed by the province
  on acquiring three year contracts for services
  envisaged, the following have not been achieved
• Appointment of school sport assistants and
  cluster coordinators.
• Appointment of activity and hub coordinators.
• Appointment of code coordinators.
• Procurement of attire and equipment
• Several goods and services acquired for
  mobilisation activities and public viewings areas
  during the Confed Cup 2009 in June and paid after
  30 June

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Notes on Sport and Recreation Grants (cont)

• Major outputs of the Conditional Grant
• Siyadlala

Dates Activities
17 April 2009 Hub festival held in Reddersburg and approximately 200 participants attended.
18 April 2009 Elderly event was held in Heilbronn and approximately 250 participants attended.
08 May Wellness 400 participants
27 June Thaba-nchu, Indigenous games district selection
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Notes on Sport and Recreation Grants (cont)

• Major outputs of the Conditional Grant
• Club Development

Dates Activities
27 April 02 May Supported Volleyball Free State in Hosting National Volleyball Club Championship
30 May 2009 Road-show 2009 Confederations Cup and 2010 World Cup Mass Mobilization Event held throughout Maluti-a-Phofung Municipality in QwaQwa. 200 u/14 football boys bussed to participate in mock-world cup trial guided by the Free State Legends. 1500 Spectators in attendance.
31 May 2009 Road-show 2009 Confederations Cup and 2010 World Cup Mass Mobilization Event held throughout Matjhabeng Municipality (Odendaalsrus via Welkom). 200 u/14 football boys bussed to participate in mock-world cup trial guided by the Free State Legends. 6000 spectators in attendance.
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Notes on Sport and Recreation Grants (cont)

• Club Development (cont)

Dates Activities
17 June 2009 Procured tickets for spectators to watch game were issued Brazil v/s Iraq
20 June 2009 Procured tickets for spectators to watch game were issued Bafana Bafana v/s Spain. Transported 42 Xhariep District coordinators to the game.
24 June 2009 Greening the Nation Project launched at Lochlogan in partnership with the Department of Environment and Tourism. Indigenous trees were planted. 50 people in attendance.
24 June 2009 Procured tickets for spectators to watch semi-final game were issued Spain v/s USA
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Notes on Sport and Recreation Grants (cont)

• Club Development (cont)

Dates Activities
28 June 2009 PVA pitched in Maluti-a-Phofung (Charles Mopedi Stadium) drew -3000 spectators
28 June 2009 PVA pitched in Matjhabeng Municipality (Phakisa) drew -5000 spectators
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Notes on Sport and Recreation Grants (cont)

• Major outputs of the Conditional Grant
• School Sport

Dates Activities
14 -17 May 2009 Three Free State schools namely Thababg, Viljoenskoon and Heidedal participated in schools FIFA 2009 Confederations Cup tournament in Johannesburg Marks Park
01 June 05 June 2009 Visit by students from Hampshire London University for the British Linkage Programme
15 June 2009 90 Farm school learners and 10 educators from Lejweleputswa, Motheo and Fezile Dabi were afforded an opportunity to attended the Confederation game in Bloemfontein
17 24 June 2009 139 Cluster coordinators and sport assistants attended the FIFA Confederation game in Bloemfontein.
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Infrastructure (Capital expenditure)
Total Budget Quarter 1 Quarter 1
Expenditure 74 740 12 474 17

• Notes
• SLAs with 2 major municipalities just finalized
  (R64 million and R11.47 million). Transfer
  payments effected for R64 million during
  September.
• 2 Projects (Basotho Cultural Village and
  Philippolis) cancelled during previous year, now
  back on tender.

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Infrastructure (Capital expenditure)
Capital projects Budget Payments Balance payments Remarks
New constructions New constructions New constructions New constructions New constructions New constructions
Qwaqwa Basotho Cultural Village 4 490 757 3 733 17 On track.
Fezile Dabi High Performance Satellite 2 345 - 2 345 - Memorandum of Agreement between Department and Fezile Dabi District Municipality yet to be signed.
Fezile Dabi Local Talent Development Centre 2 345 - 2 345 - Memorandum of Agreement between Department and Fezile Dabi District Municipality yet to be signed.
Edenville Library 7 700 - 7 700 - Contract on track. Payment will pick up during 2nd quarter.
Bloemfontein Sport Museum 12 000 - 12 000 - Contractor yet in process of being appointed.
Fezile Dabi Stadium 61 880 11 000 22 000 33 Payment on track.
TOTAL 11 757 50 123 19
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Infrastructure (Capital expenditure)
Capital projects Budget Payments Balance payments Remarks
Rehabilitation / upgrading Rehabilitation / upgrading Rehabilitation / upgrading Rehabilitation / upgrading Rehabilitation / upgrading
NALN Museum 1 000 - 1 000 - Under retention
Philippolis Museum 1 840 - 1 840 - Sub-contractors appointed to assist contractor.
Presidency Museum 700 - 700 - Contractor appointed 7/09
Craft Emporium 1 500 - 1 500 - In planning stage
Military Museum 300 - 300 - In planning stage
FSSSI Facilities 2 499 - 2499 - Contractor in process of being appointed
Zamdela Arts Culture Centre 500 120 380 24 On track
Philippolis Library 1 000 267 733 27 On track
Mangaung Sport Stadium 500 200 300 40 On track
TOTAL 9 839 587 9 252 6
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Infrastructure (Capital expenditure)
No significant risks of underspending identified
at this stage.
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Infrastructure (Capital expenditure) (cont)

• Challenges during 2009/10
• Contractors to be appointed for Museums so that
  the cash can flow
• Sub-contractors appointed to assist main
  contractor at Philippolis Library

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Infrastructure Project Progress
Project Name Baseline Baseline Actual start and expected end date Actual start and expected end date Physical progress
Start End Start End
Free State Sport Museum 1 April 08 31 Mar 10 1 April 08 31 Mar 10 1
Qwaqwa BCV 1 Sept 05 1 Oct 06 1 April 08 31 Mar 10 40
Afrikaans Literary Museum 1 April 02 31 Aug 08 15 Nov 05 Dec 08 80
Philippolis Museum 1 April 08 31 Mar 09 1 April 08 31 Mar 10 0
Zamdela Arts and Culture Centre 1 April 09 31 Aug 09 50
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Infrastructure Project Progress
Project Name Baseline Baseline Actual start and expected end date Actual start and expected end date Physical progress
Start End Start End
Philippolis Library 1 Jan 07 30 Sept 08 1 March 09 31 March 10 5
FSSSI Rehabilitation Unit 1 May 05 1 July 06 1 April 09 31 March 09 99
Fezile Dabi Stadium 1 April 08 31 Mar 11 1 April 08 31 March 10 0
Fezile Dabi HPC LDC Satellite 1 April 09 31 Mar 10 Planning 31 March 10 5
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Challenges with Infrastructure Projects
Project Reasons for Underperformance Remedial Action
CULTURAL AFFAIRS CULTURAL AFFAIRS CULTURAL AFFAIRS
Free State Sport Museum Construction not commenced To fast-track bidding process
Phillippolis Museum Inadequate performance by contractor Sub-contractors appointed to assist the main contractor.
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Challenges with Infrastructure Projects
Project Reasons for Underperformance Remedial Action
SPORT AND RECREATION SPORT AND RECREATION SPORT AND RECREATION
FSSSI facilities Construction not commenced To fast-track bidding process
Fezile Dabi Stadium Shortfall of R30 m on contract Municipality to source additional funding
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General analysis of trends
General Analysis of Trends

• Infrastructure spending is picking up during
  August 2009 and is expected to keep momentum
  during September 2009
• Library grants transferred from National Treasury
  in
• accordance with cash flow plans
• Sport and Recreation grants transferred from
  National Treasury in accordance with cash flow
  plan

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General analysis of trends
General Analysis of Trends (cont)

• Challenges
• Approval of business plans just before
  commencement of new financial year
• Delays in recruitment process (advertising), over
  which the programmes have not direct control
• Not all of contract workers in place by 1 April
  2009 but to be appointed during 2nd quarter
• One-year contracts awarded during 1st quarter for
  major suppliers, to be delivered during 2nd and
  3rd quarter.

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General analysis of trends
General Analysis of Trends (cont)

• Remedial measures
• Approval to amend business plan to redirect
  under-expenditure on compensation budget to other
  projects

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Plans to Address Shortcomings

• For 2009/10
• Recruitment process to be fast-tracked
• 1-year contracts, to be monitored for performance
• As from 2010/11
• Proper planning before 1 April, especially with
  regard to
• Number of coordinators and contract workers
  required to be recruited by 1 April
• Need analysis for goods and services contracts to
  be in place by 1 April
• Events calendar so that public funds can be
  properly committed, prior to events
• Suppliers registered on system for timely payments

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Assessment of Departments Monitoring Capacity

• Financial Control Committee meeting under
  chairpersonship of Head of Department
• Executive Manager Sport and Recreation and
  Senior Manager Recreation supported by 2
  Managers
• Executive Manager Cultural Affairs and Library
  Services and Senior Manager Library and Archive
  Services, supported by 2 Managers (to be filled 1
  October 2009)
• Expenditure trend-tracking overview by Chief
  Financial Officer
• Finance, Supply Chain Management and Human
  Resources clerks appointed out of grants to focus
  on grant commitments
• Reporting system
• Quarterly reports to National Department (and
  National Treasury via Provincial Treasury) with
  comments on variances
• Monthly IYM reports, with comments on variances

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THANK YOU