Outcome of Conditional Grants

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

• Select Committee on Finance
• National Council of Provinces
• Presented by
• Jan Hattingh
• Intergovernmental Relations
• National Treasury
• 11 October 2005

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First Quarter Spending
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Provincial Aggregated Expenditure
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Provincial Social Services
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Provincial Social Services by Province
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Provincial Education
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Provincial Public Ordinary School Education
(Programme 2)
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Provincial Education Personnel
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Provincial Education NPNC
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Provincial Health
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Provincial District Health Services (Programme 2)
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Provincial Hospital Services (Programme 4)
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Central Hospital Services (Programme 5)
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Provincial Health Personnel
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Provincial Health NPNC
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Provincial Social Development
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Provincial Social Grants (Programme 2)
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Provincial Personnel
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CAPEX TRENDS
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Provincial Capital
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Capital Year-on-year growth, 2004/05 to 2005/06
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Provincial Capital
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Provincial Capital
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Provincial Capital
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Provincial Education Capital
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Provincial Health Capital
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Provincial Capital Roads Transport
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Integrated Housing and Human Settlement
Development Expenditure
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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

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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)

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INFRASTRUCTURE TRENDS
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Provincial Education Capex v/s Infrastructure
Budgets
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Provincial Education Capex v/s Infrastructure
Spending
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Provincial Health Capex v/s Infrastructure
Budgets
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Provincial Health Capex v/s Infrastructure
Expenditure
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Provincial Capital Roads Transport Capital
v/s Infrastructure Budgets
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Provincial Capital Roads Transport Capital
v/s Infrastructure Expenditure
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MARCH SPIKE
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Quarterly Provincial Spending 2004/05 Financial
Year
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Quarterly Provincial Spending 2004/05 Financial
Year
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Quarterly Comparison between the 2003/04 and
2004/05 Financial Years
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Monthly Expenditure for the 2002/03, 2003/04 and
2004/05 Financial Years
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Provincial Monthly (Actual and Projected)
Expenditure
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CONDITIONAL GRANTS EXPENDITURE
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(No Transcript)
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Conditional Grants Overview 1st Quarter
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Conditional Grants continued Overview 1st
Quarter
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Provincial CGs Spending Rate
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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

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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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Detail on Conditional Grants by Grant Type
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Agriculture GrantsLand Care Programme Poverty
Relief andInfrastructure Development

• Objective (Schedule 5 Grant)
• To address the degradation problems of
  natural/agricultural resources and improve the
  social-economic status, and food security of
  rural communities
• First Quarter Expenditure
• Agriculture spent R9,3 million or 23,4 of the
  R40 million allocation
• Transfers amounted to 10
• Highest NC 299 MP 32,6 and KN 14,1
• Lowest GP 0 NW 0 and EC 0,1
• Service Delivery Outcome
• Department / Sector to respond

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Agriculture GrantsComprehensive Agriculture
Support Programme

• Objective (Schedule 4 Grant)
• To enhance the provision of support services to
  promote and facilitate agricultural development
  targeting beneficiaries of the Land and Agrarian
  Reform programme and resource poor land-users
• First Quarter Expenditure
• Spending of this grants is subsumed in the
  spending of a range of programmes and therefore
  no reporting is required
• Agriculture spent R31,3 million or 12,5 of R250
  million allocation
• Transfers amounted to 10
• Highest FS 36,7 WC 19,6 and MP 19,6
• Lowest GP 0 NW 0 and LP 4,7
• Service Delivery Outcome
• Department / Sector to respond

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Education GrantsHIV and Aids Grant (Life Skills
Education)

• Objectives
• To ensure access to an appropriate and effective
  integrated system of prevention, care and support
  for children infected and affected by HIV and
  Aids
• To deliver life skills, sexuality and HIV and
  Aids education in primary and secondary schools
• First Quarter Expenditure
• Education spent R18,5 million or 13,6 of the
  R136,3 million allocation
• Transfers amounted to 25
• Highest KN 33,9 EC 16,4 and NC 13,2
• Lowest NW 0 and GP 0,4
• Service Delivery Outcome
• Department / Sector to respond

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Education GrantsNational School Nutrition
Programme

• Objective
• To improve the nutrition status of South African
  children specifically to enhance active learning
  capacity and improve attendance in schools
• First Quarter Expenditure
• Education spent R168,6 million or 18,5 of the
  R912,2 million allocation
• Transfers amounted to 25
• Highest NC 27,9 MP 27,8 and KN 27,1
• Lowest WC 4,3 and LP 6,8
• Service Delivery Outcome
• Department / Sector to respond

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Health GrantsNational Tertiary Services Grant

• Objective (Schedule 4 Grant)
• To fund national tertiary delivery in 27
  hospitals across the nine provinces, as
  identified by the national department of Health
  (DOH), in order to ensure equitable access to
  basic tertiary health services by all South
  Africans
• First Quarter Expenditure
• Spending of this grants is subsumed in the
  spending of a range of programmes and therefore
  no reporting is required
• Health spent R1 154 million or 24,5 of the R4
  709 million allocation
• Transfers amounted to 25
• Highest KN 27 FS 25,8 GP 25 and WC 25
• Lowest NW 7 and LP 10
• Service Delivery Outcome
• Department / Sector to respond

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Health GrantsHealth Professions Training and
Development Grant

• Objectives (Schedule 4 Grant)
• Support provinces to fund service costs
  associated with training of health professionals
• Enable shifting of teaching activities from
  central hospitals to regional and district
  facilities
• Development and recruitment of medical specialist
  in under-served provinces
• First Quarter Expenditure
• Spending of this grants is subsumed in the
  spending of a range of programmes and therefore
  no reporting is required
• Health spent R314,7 million or 20,7 of the R1
  520 million allocation
• Transfers amounted to 25
• Highest FS 32,5 GP 25 and WC 25
• Lowest EC 3,5 KN 11 and LP 10
• Service Delivery Outcome
• Department / Sector to respond

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Health GrantsComprehensive HIV and Aids Grant

• Objectives
• To Enable the health sector to develop an
  effective response to the HIV/Aids epidemic and
  other matters
• First Quarter Expenditure
• Health spent R187,6 million or 16,5 of the R1
  135 million allocation
• Transfers amounted to 13,7
• Highest GP 27,7 and WC 22
• Lowest NW 9,1 LP 10 and FS 11,5
• Service Delivery Outcome
• Department / Sector to respond

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Health GrantsHospital Revitalisation Grant

• Objective
• To transform and modernise infrastructure and
  equipment in hospitals in line with national
  policy and to achieve a sustainable
  infrastructure from which modern, equitable and
  sustainable services can be delivered
• First Quarter Expenditure
• Health spent R125,6 million or 12,2 of the R1
  027 million allocation
• Transfers amounted to 25
• Highest GP 43,9
• Lowest KN 0,9 FS 6,2 and NW 8,6
• Service Delivery Outcome
• Department / Sector to respond

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Health GrantsIntegrated Nutrition Programme Grant

• Objective
• To implement integrated nutrition activities
  aimed at improving the nutritional status of all
  South Africans
• First Quarter Expenditure
• Health spent spent R16 million or 13 of the
  R123,4 million allocation
• Transfers amounted to 22,2
• Highest NC 29,9 MP 25,4 and EC 21,6
• Lowest GP 1 WC 7,3 NW 7,8 and FS 7,8
• Service Delivery Outcome
• Department / Sector to respond

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Health GrantsHospital Management and Quality
Improvement Grant

• Objective (Schedule 5 Grant)
• To transform hospital management and improve
  quality of care in line with national policy
• First Quarter Expenditure
• Health spent spent R20,7 million or 13,8 of the
  R150,3 million allocation
• Transfers amounted to 25
• Highest MP 38,8
• Lowest NC 0
• Service Delivery Outcome
• Department / Sector to respond

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Housing GrantsIntegrated Housing and Human
Settlement Grant

• Objective (Schedule 5 Grant)
• To finance subsidies the implementation of
  National Housign Programmes and to facilitate
  habitable, stable and sustainable human
  settlements
• First Quarter Expenditure
• Housing spent R1 072 million or 22,1 of the R4
  843 million allocation
• Transfers amounted to 26,3
• Highest NC 58,3
• Lowest WC11,7 LP 12,3 EC17 and KN 18,3
• Service Delivery Outcome
• Department / Sector to respond

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Housing GrantsHuman Settlement and Redevelopment
Grant

• Objective (Schedule 5 Grant)
• To fund projects that aim to improve the quality
  of the environment by identifying
  dysfunctionalities in human settlements
• First Quarter Expenditure
• Housing spent R8,1 million or 33,1 of the R24,4
  million allocation
• Transfers amounted to 31,9 (Not all funds
  transferred as per the payment schedule)
• Highest LP 118
• Lowest GP 0
• Service Delivery Outcome
• Department / Sector to respond

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Land AffairsLand DistributionAlexandra Urban
Renewal Project Grant

• Objectives (Schedule 5 Grant)
• TO contribute towards the purchase of land for
  the relocation and settlement of Alexandra
  residents and other qualifying beneficiaries
• First Quarter Expenditure
• Gauteng spent the entire allocation for this
  grant but no funds were transferred
• Service Delivery Outcome
• Department / Sector to respond

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National TreasuryProvincial Infrastructure Grant

• Objectives (Schedule 4 Grant)
• Help accelerate construction, maintenance and
  rehabilitation of new and existing infrastructure
  in education, roads, health and agriculture
• Gradually increase the labour-intensity of
  certain specific types of projects over the next
  five years
• First Quarter Expenditure
• Spending of this grants is subsumed in the
  spending of a range of programmes and therefore
  no reporting is required
• Transfers amounted to 16,7 (Not all funds
  transferred as per the payment schedule)
• Service Delivery Outcome
• Department / Sector to respond

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Social Development GrantsSocial Assistance
Administration Grant

• Objectives (Schedule 5 Grant)
• To fund the administration of social assistance
  grants
• First Quarter Expenditure
• Social Development spent R541,6 million or 16 of
  the R3 382 million allocation
• Transfers amounted to 25 (Not all funds
  transferred as per the payment schedule)
• Highest NC 20,6 NW 20,4 and KN 20,2
• Lowest MP 3,1
• Service Delivery Outcome
• Department / Sector to respond

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Social Development GrantsSocial Assistance
Transfers Grant

• Objective (Schedule 5 Grant)
• To fund social assistance transfer payments to
  eligible beneficiaries
• First Quarter Expenditure
• Social Development spent R10 745 million or 20,7
  of the R52 023 million allocation
• Transfers amounted to 27 (Not all funds
  transferred as per the payment schedule)
• Highest LP 24,1 WC 24,1 EC 23,7 NC 23,1
  FS 21,8 KN 21,1 and GP 20,7
• Lowest NW 5,6
• Service Delivery Outcome
• Department / Sector to respond

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Social Development GrantsHIV and Aids Grant
(Community-Based Care)

• Objectives (Schedule 5 Grant)
• To provide social welfare services to orphans and
  vulnerable children who are infected by HIV and
  Aids, within family and community context, in
  partnership with non profit making organizations
  (NGOs, CBOs and other community organisations)
• To develop and support institutional structures
  and professionals, community workers and child
  and youth care workers through targeted training
  programmes in order to ensure effective delivery
  of services
• First Quarter Expenditure
• Social Development spent R9,3 million or 6,7 of
  the R138,4 million allocation
• Transfers amounted to 60
• Highest GP 23,7
• Lowest EC 0 FS 0 and WC 0
• Service Delivery Outcome
• Department / Sector to respond

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Social Development GrantsIntegrated Social
Development Services Grant

• Objective (Schedule 4 Grant)
• To enable provinces to support and provide
  appropriate social welfare services and
  development interventions, and for immediate and
  appropriate short-term relief to vulnerable
  individuals and households who are not eligible
  and not receiving any from of assistance
• First Quarter Expenditure
• Spending of this grants is subsumed in the
  spending of a range of programmes and therefore
  no reporting is required
• Social Development spent R18,8 million or 4,9 of
  the R388 million allocation
• Transfers amounted to 50
• Highest MP 23 and FS 23
• Lowest EC 0 KN 0 LP 0 NC 0 NW 0 and
  WC 0,1
• Service Delivery Outcome
• Department / Sector to respond

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Sport and Recreation SA Grants Mass Sport and
Recreation Participation Programme

• Objective (Schedule 5 Grant)
• Promotion of mass participation within
  disadvantaged communities in a selected number of
  sport activities and the empowerment of
  communities to manage these activities in
  conjunction with provincial departments
  responsible for sport
• First Quarter Expenditure
• Sport and Recreation spent R2,6 million or 11 of
  the R24 million allocation
• Transfers amounted to 44,4
• Highest MP 43
• Lowest LP 0
• Service Delivery Outcome
• Department / Sector to respond

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THANK YOUTHANK YOU

• THANK YOU