Department of Sport, Arts and Culture EXPENDITURE REPORT (THIRD QUARTER) (LIBRARY CONDITIONAL GRANT) APRIL - DECEMBER 2009

1. LIBRARY CONDITIONAL GRANT SPENDING AS AT 31 DECEMBER 2009 (THIRD QUARTER)

LIBRARY CONDITIONAL GRANT SPENDING AS AT 31 DECEMBER 2009 (THIRD QUARTER) -continued The Community Library Services grant spent an amount of R36,778 million against a budget of R61,360 million as at the end of December 2009. The spending represents 60% of the total budget. Spending (including commitments) during the same period accounts for 61% of the total budget.

Per Economic Classification The heartland of southern Africa-development is about people

Per Economic Classification - continued Compensation of Employees CoE spending at the end of December 2009 amounts to R3,773 million. This represents 50% of the budget of R7,600 on CoE. Goods and Services The grant spent R14,379 on goods and services against a budget of R22,795 as at 31st December 2009. This represents 63% of the total budget on goods and services

Per Economic Classification - continued Transfers and Subsidies The department does not make any transfers to municipalities from the conditional grant. Payment for Capital Assets The grant spent R18,626 million on capital assets against a budget of R30,965 million. This represents 60% actual spending. Spending (including commitments) is at 61% during the same period

BREAKDOWN OF CAPITAL EXPENDITURE

BREAKDOWN OF CAPITAL EXPENDITURE - continued The grant spent as follows in terms of the breakdown on capital expenditure as at the end of December 2009:- - Buildings and other fixed structures -72% - Audio Visual equipments – 0% - Computer hardware and systems – 67% - Office equipment – 0% - Office furniture – 0%

ALLOCATION TRENDS

ALLOCATION TRENDS - continued The Library Conditional grant started in the 2007/08 financial year. The budget increased from R22,860 million to R42,926 million in 2008/09 financial year. It increased from R42,926 million in 2008/09 to R55,956 in 2009/10 financial year. It again increased from R55,956 million in 2009/10 to R62,733 million in the 2010/11 financial year. The increase represents 88%, 30% and 12% respectively from 2008/09, 2009/10 and 2010/11 financial years. The difference of R5,478 million in 2008/09 and R5,404 million in 2009/10 is as a result of roll-overs received from the National Department of Arts and Culture

EXPENDITURE TRENDS 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11   2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 R’000  ACTUAL R’000 PROJECTION Actual expenditure - 17,145 40,045 61,360 62,733 TOTAL

EXPENDITURE TRENDS - continued Spending in the Library conditional grant increased from R17,145 million in 2007/08 to R40,045 million in 2008/09 financial year. It increased from R40,045 in 2008/09 to a projected R61,360 million in 2009/10 financial year. The projected spending for the 2010/11 financial year is R62,733 million. This represents an increase of 133% between 2007/08 and 2008/09 financial years. Spending is also projected to increase by 53% and 2% between the 2008/09, 2009/10 and 2010/11 financial year respectively.

Capacity Constraints which resulted in under spending Incapacity of contractors to deliver on infrastructure projects, e.g. construction of Fetakgomo Library and maintenance of Marble Hall library Delay to implement the Ga-Phahla library due to disputes Inadequate co-ordination co-ordination of projects in collaboration with the implementing agent Inadequate Project Management capacity and monitoring Inadequate technical skills which makes the department to rely on third parties

STEPS TAKEN TO SPEED-UP SPENDING The department seeks to improve the monitoring capacity through getting Technical Assistance and improving communication with the implementing agent The departmental Steering Committee and Library forums will be co-ordinated

END Thank You