PRIORITISED NATIONAL DEPARTMENTS 2016/17 4TH QUARTER Presentation to the Standing Committee on Appropriations by Phelelani Dlomo and Musa Zamisa Dated: 3 August 2017

PRIORITISED DEPARTMENTS PUBLIC ENTERPRISES SMALL BUSINESS DEVELOPMENT BASIC EDUCATION WATER & SANITATION CORRECTIONAL SERVICES TRANSPORT

Small Business Development SECTION A Public Enterprises Small Business Development Basic Education

OVERALL PERCENTAGE (%) EXPENDITURE 2012/13 – 2016/17 TREND ANALYSIS

OVERALL DEPARTMENTAL UNDER/OVER EXPENDITURE OVER THE PERIOD 2012/13 – 2016/17   2016/17 2015/16 2014/15 2013/2014 2012/2013 Basic Education R937.8 mln R490.3 mln R160.9 mln R17.6 bln R1.3 bln Public Enterprises R14.2 mln R42.9 mln R24 mln R294.1 mln R9.7 mln Small Business Development R120.9 mln R28.6 mln NO REPORT

COMPENSATION OF EMPLOYEES

PROGRAMMES: DEPARTMENT OF PUBLIC ENTERPRISES

MAIN REASONS FOR UNDERSPENDING DEPARTMENT OF PUBLIC ENTERPRISES Unfilled funded & critical positions (32 in total) 19 vacant critical positions vacant NB: In the Portfolio Management and Strategic Partnerships Programme Mostly Chief and Deputy Director positions Is the Department in the position to monitor the performance of key SOEs (.i.e Eskom, Denel, Transnet, ALEXKO, SA Express & SAFCOL)?

PROGRAMMES: DEPARTMENT OF SMALL BUSINESS DEVELOPMENT

MAIN REASONS FOR UNDERSPENDING DEPARTMENT OF SMALL BUSINESS DEVELOPMENT Unfilled funded & critical positions Due to on-going organisational restructuring Non-transferal of budget Mostly in the SMMEs and Cooperative Programme Design & Support Underspending on Cooperative Incentive schemes Late Appointment of the Adjudication Committee Is the Department in the position to create a conducive environment for small businesses?

PROGRAMMES: DEPARTMENT OF BASIC EDUCATION

MAIN REASONS FOR UNDERSPENDING DEPARTMENT OF BASIC EDUCATION Delays in the implementation of the Kha Ri Gude programme Poor performance on ASIDI (R947 million unspent) withholding of the final transfer of R6.6 million of the HIV and Aids (Lifeskills) conditionalgrant to Limpopo. The issue of mud schools in the Eastern Cape, will it be put to rest any time soon? What is happening with the withholding of conditional grants in the Limpopo province? Why always challenges in the implementation of the Kha Ri Gude programme? What is happening with the Schools Nutrition Programme in KZN given recent media reports?

CORRECTIONAL SERVICES SECTION B WATER & SANITATION CORRECTIONAL SERVICES TRANSPORT

Water Affairs and Sanitation Available budget R15.2 billion, spent 100.1 % or R18.9 million more than budget

Programme Expenditure Water Sector regulation only spent 81 Programme Expenditure Water Sector regulation only spent 81.4 per cent of R346.1 million. Water and Sanitation Services managed to spend 39.4 per cent of R738.1 million. Water Infrastructure and Development spent 100.2 per cent of R12.0 billion. Water Planning and Information Management spent 85.4 per cent of R814.8 million In terms of economic classifications: The Department only 93.9 per cent of R3.3 billion on current payments. -Goods and services only spent 94.4 per cent of R1.6 billion. -Compensation of employees only spent 93.5 per cent of R1.5 billion. -103 per cent of R4.9 billion on payment for capital assets. Summary of Key Reasons for under expenditure: Unfilled vacancies, delays in processing invoices, reduced air and road travel, audit fees, non-finalisation and approval of audit plan, delays I concluding agreements with service providers for the National Water Resources and Sanitation Service Strategy, water and Sanitation Master Plan, feasibility and reconciliation studies,

Key Performance Indicator 2016 2015 Key Performance Area (KPA) Annual Performance Plan Non-compliance Partially compliance Strategic Management PAIA Non –compliance Full compliance Governance & accountability PAJA Organ Design Human Resource Mngt Employ Wellness Human Resource Mgnt Disciplinary Cases PMDS HOD Non- compliance Human Resource Mngt Pay of Supp. 30 days Finance and Supply Chain

CORRECTIONAL SERVICES Available budget of R21 CORRECTIONAL SERVICES Available budget of R21.5 billion, spent 100 per cent, with R5.4 million more than allocation.

CORRECTIONAL SERVICES Programme Expenditure Care programme - spent 113.1 per cent of R1.9 billion allocated. Social Reintegration – spent 105.7 per cent of R807.8 million allocated. Administration – spent 100.2 per cent of R3.8 billion allocation. Rehabilitation – only spent 97.2 per cent of R1.2 billion. Incarceration – only 98.0 per cent of R13.7 billion allocated. In terms economic classifications: Current payments have spent 100 per cent of the allocated R20.4 billion. Compensation of employees have only spent 97.3 per cent of R14.8 billion. Slight over expenditure of 108.4 per cent on goods and services makes up the under expenditure on CoE. Summary of key reasons for under expenditure – unfilled funded vacant posts, cost containment measures, the embargo implemented on acquisition of machinery and equipment. Summary of key reasons for over expenditure: - the increase in the food prices for suppliers, fuel and vehicle repairs for fleet service, increase in the property payments, the payment of performance bonuses for non-SMS staff.

Key Performance Indicator 2016 2015 Key Performance Area (KPA) Annual Performance Plan Partial compliance Non compliance Strategic Management Professional Ethics Governance and Accountability Fraud Prevention Risk Management Corp gov. ICT PAJA PAIA HRP HRM OD HRDP Recruitment Employ Wellness PMDS level 1 – 12 Disciplinary cases Pay supply. 30 days Finance and Supply Unauthorised Disposal management

TRANSPORT Available budget R56. 4 billion, spent 100. 2 per cent R117 TRANSPORT Available budget R56.4 billion, spent 100.2 per cent R117.8 million more

Administration programme only spent 92.9 per cent of R365.1 million. TRANSPORT Maritime Transport programme spent 127.0 per cent of the allocated R120.8 million. Road Transport programme spent 101.0 per cent of the allocated R25.0 billion. Civil Aviation programme only spent 83.1 per cent of the allocated R210.4 million. Administration programme only spent 92.9 per cent of R365.1 million. In terms of economic classifications: Current payments managed to spend 101 per cent of R1.1 billion allocated. - Compensation of employees spent 90.9 per cent of R392 million allocated. - Goods and services spent 108.3 per cent of R751.8 million allocated. - Capital payments have spent 126.6 per cent.   Summary of key reasons for over expenditure: - due to the increase in the transfer payment for Railway Safety Regulator, transfers made to the Electrical National Traffic Information System (eNATIS), Summary of key reasons for under expenditure: - unfilled vacant positions, less than anticipated invoices were paid, slow spending on review of Tax Recap model and Integrated Public Transport Network in municipalities, due to the discontinuation of national freight,

TRANSPORT Key Performance Indicator 2016 2015 Key Performance Area (KPA) Annual Performance Plan Partial compliance Strategic Management PAIA Non compliance Governance and Accountability Disciplinary cases HRM PMDS OD Full compliance Pay of Supp. 30 days Finance and Supply Chain