PERFORMANCE OUTCOMES FOR THE THIRD quarter of 2018/19 FINANCIAL YEAR Presentation to the Budget Committee Provincial Treasury and the Department of the Premier 1 March 2019

3rd Quarter Outcomes of the 2018/19 Financial Year for Expenditure, Infrastructure and Revenue

Summary of departmental expenditure as at 31 December 2018 Performance Outcomes for the Third Quarter of 2018/19 financial year

Provincial Expenditure as at 31 December 2018 [1] The third quarter spending amounts to R45.499 billion or 72 per cent of the R63.212 billion adjusted budget The third quarter 2018/19 performance of the Province include a net adjustment of R463.308 million made to the main budget in November 2018, in order to maintain fiscal stability, and also responding to, amongst others, risks such as the drought and fires, and the challenges relating to the promotion of safety in the Western Cape At the end of December 2018, the Province reflected a net projected over expenditure of R16.302 million for the 2018/19 financial year The departments largely contributing to the overall projected over spending, include the following: Health: Vote is managing the projected net over spending amounting to R19.991 million, is mainly as a result of Payments to Capital Assets for addressing the equipment backlogs within the Vote, and will be addressed by the processing of final virements at the end of the financial year. No risk of overspending Performance Outcomes for the Third Quarter of 2018/19 financial year

Provincial Expenditure as at 31 December 2018 [2] Provincial Treasury: Projected under spending amounts to R2.502 million and relates mostly to Compensation of Employees, due to the additional graduate interns who have deferred their obligations. The under spending also includes the impact of internal promotions, resignations and the later than anticipated filling of vacancies Community Safety: Projected net under spending amounts to R1.187 million, mainly related to Compensation of Employees (R1.206 million), attributed to delays in the filling of vacant posts and internal promotions Performance Outcomes for the Third Quarter of 2018/19 financial year

Summary of Public Entity expenditure as at 31 December 2018 Performance Outcomes for the Third Quarter of 2018/19 financial year

Provincial Public Entities expenditure as at 31 December 2018 [1] The third quarter performance reflects spending of R502.265 million or 70 per cent of the R717.647 million adjusted budget At the end of December 2018, provincial public entities project a net under expenditure of R3.562 million, and mainly relates to Western Cape Nature Conservation Board, and Western Cape Tourism, Trade and Investment Promotion Agency (Wesgro) CapeNature projects under spending amounting to R2.631 million, related to the recent fires experienced in the Kogelberg and Betty’s Bay area, which caused some delays in implementing the Kogelberg Nature Reserve infrastructure project. Further delays were experienced in procuring protective clothing for field workers (firefighting and alien clearing), due to difficulty in attaining the appropriate suppliers Western Cape Tourism, Trade and Investment projects under spending of R1.245 million, and relates to savings realised, due to delays in the filling of vacant posts, and the lower than anticipated IT fees which is inclusive of licence fees paid to Microsoft Performance Outcomes for the Third Quarter of 2018/19 financial year

Infrastructure Expenditure as at 31 December 2018 Performance Outcomes for the Third Quarter of 2018/19 financial year

Summary of Provincial Own Receipts as at 31 December 2018 Performance Outcomes for the Third Quarter of 2018/19 financial year

Provincial Own Receipts as at 31 December 2018 [1] Provincial own revenue collected at the end of the third quarter amounts to R2.625 billion, or 88.5 per cent of the 2018/19 adjusted budget of R2.967 billion Key Revenue Drivers: Transport and Public Works: The own revenue collections amounting to R1.361 billion at the end of December 2018, compared with R1.283 billion collected up to the end of December 2017. The Department’s own revenue is mainly derived from Motor Vehicle Licence (MVL) fees, amounting to R1.261 billion Health: The own revenue collected at the end of December 2018 amounts to R502.890 million or 89.3 per cent of the adjusted budget, and is higher than the R439.572 million collected up to the end of December 2017. The higher own revenue collections recorded at the end of the third quarter of 2018/19, were mainly due to higher hospital patient fees collected Performance Outcomes for the Third Quarter of 2018/19 financial year

Provincial Own Receipts as at 31 December 2018 [2] Provincial Treasury: The own revenue collected at the end of the third quarter of 2018/19, amounts to R469.092 million or 86.8 per cent of the R540.353 million adjusted budget. The revenue at the end of December 2018 includes casino taxes amounting to R409.946 million, while horse racing taxes amounts to R50.903 million Human Settlements: The own revenue collections amounts to R220.015 million at the end of December 2018. The revenue collected during the current financial year includes R81 million received for the sale of land to the Airports Company South Africa (ACSA), returned subsidies from the municipalities in relation to prior financial years. Performance Outcomes for the Third Quarter of 2018/19 financial year

Non-financial preliminary performance information for the third quarter of the 2018/19 financial year for all departments and public entities Zeenat Ishmail

Departments: Preliminary Performance Information for the Third Quarter 2018/19 FY

Summary of Departmental preliminary Performance Information for Quarter 3 Source : preliminary eQPR Key: Achieved = 100 per cent or more of target achieved; Partially achieved = 50 per cent or more but less than 100 per cent; Not achieved = below 50 per cent. Due to rounding, percentages do not always add up to 100 per cent Note: Health uses 95 per cent and above to reflect “achieved” due to many of the indicators being demand driven and therefore unpredictable. Source : preliminary QPR Model Performance Outcomes for the Third Quarter of 2018/19 financial year

Departmental preliminary performance against the provincial average Performance Outcomes for the Third Quarter of 2018/19 financial year

Key Observations – Provincial Departmental perspective Provincial average - performance targets achieved: WCG Departments achieved 367 (76%) of the 486 performance indicator targets Achieving more than or equal to (≥) the WCG average of 76% : Six departments: DotP (87%), PT (96%), DLG (91%), WCED (100%), DOCS (98%) and DEDAT (88%) Achieving less than (<) the WCG average of 76% : Seven departments: DOH (73%), DSD (68%), DHS (43%), DCAS(72%), DOA (66%), DTPW (38%) and DEA&DP (73%) 76 targets or 16 per cent of targets have been partially achieved 43 targets or 9 per cent of targets have not been achieved Performance Outcomes for the Third Quarter of 2018/19 financial year

Key Observations – Provincial Cluster perspective Overall cluster (unit of analysis) average achieved of performance targets: Governance cluster = 92% Social cluster = 77% Economic cluster = 63% Achieving % performance targets more than (≥) WCG average of 76%: All departments within the Governance Cluster achieved more than the WCG average Two departments within the Social Cluster achieved more than the WCG average, namely Education and Community Safety One department within the Economic Cluster achieved more than the WCG average, namely Economic Development and Tourism Achieving % performance targets less than (<) WCG average of 76%: Four departments within the Social Cluster achieved less than the WCG average, namely Health, Social Development, Human Settlements and Cultural Affairs and Sport Three departments within the Economic Cluster achieved less than the WCG average, namely Agriculture, Transport and Public Works and Environmental Affairs and Development Planning Performance Outcomes for the Third Quarter of 2018/19 financial year

Reporting on preliminary and validated performance data Preliminary performance data This is non-financial performance data that has not been subjected to review or quality control (that must be valid at the time of reporting at the end of a quarter) by a department or public entity Validated performance data This is the preliminary performance data that has undergone a process of verification to ensure that the data quality is valid (complete and accurate) It is important to note that the validated performance data must not be of a lesser value than the preliminary data Preliminary and validated performance data will in future be reported on for the previous quarter’s performances Performance Outcomes for the Third Quarter of 2018/19 financial year

Key Observations – Provincial Departmental perspective The analysis of the Preliminary vs Validated non-financial performance reporting for quarter 2 revealed the following: Seven (7) departments reported a lower validated performance achieved than their initial preliminary performance: DLG; DCAS; DHS; DOCS; DSD; DOH and DEA&DP Three (3) departments reported higher validated performance achieved than their initial preliminary performance: DEDAT,DOA and DTPW The preliminary and validated performance of departments who remained the same: DotP; PT and WCED Performance Outcomes for the Third Quarter of 2018/19 financial year

Public Entities: Preliminary Performance Information for the Third Quarter 2018/19 FY

Summary of Public Entity preliminary Performance Information for Quarter 3 Source : preliminary eQPR Key: Achieved = 100 per cent or more of target achieved; Partially achieved = 50 per cent or more but less than 100 per cent; Not achieved = below 50 per cent. Due to rounding, percentages do not always add up to 100 per cent Performance Outcomes for the Third Quarter of 2018/19 financial year

Public Entity preliminary performance against the provincial average Performance Outcomes for the Third Quarter of 2018/19 financial year

Key Observations – Public Entity perspective WCG public entities achieved 73 (77%) of the total 95 performance indicator targets Achieving more than or equal to (≥) the WCG average of 77% : Four Public Entities: WCGRB (92%), WCLA (92%), HWC (100%) and SBIDZ (100%) Achieving less than (<) the WCG average of 77% : Five Public Entities: WCLC(50%), WCCC (50%), Wesgro (74 %), Casidra (58%) and CapeNature (50%) 15 targets or 16 per cent of targets have been partially achieved 7 targets or 7 per cent of targets have not been achieved Performance Outcomes for the Third Quarter of 2018/19 financial year

Key Observations – Provincial Cluster perspective Overall cluster (unit of analysis) average achieved of performance targets: Governance cluster = 92% Social cluster = 88% Economic cluster = 65% Achieving % performance targets more than (≥) WCG average of 77%: The WCGRB within the Governance Cluster achieved more than the WCG average Two of the four public entities within the Social Cluster achieved more than the WCG average, namely WCLA and HWC One of the four public entities in the Economic Cluster achieved more than the WCG average, namely SBIDZ-LC Achieving % performance targets less than (<) WCG average of 77%: WCLC and WCCC within the Social Cluster did not achieve more than the WCG average Wesgro, Casidra and CapeNature within the Economic Cluster did not achieve more than the WCG average Performance Outcomes for the Third Quarter of 2018/19 financial year

Preliminary VS Validated Performance Information for Quarter 2 Performance Outcomes for the Third Quarter of 2018/19 financial year

Key Observations – Public Entity perspective The analysis of the Preliminary vs Validated non-financial performance reporting for quarter 2 revealed the following: Four (4) public entities reported a lower validated performance achieved than their initial preliminary performance: WCLA; Casidra; GMT and Wesgro The preliminary and validated performance of public entities who remained the same: WCGRB; HWC; WCCC; Cape Nature and SBIDZ Performance Outcomes for the Third Quarter of 2018/19 financial year

Discussions/Questions Performance Outcomes for the Second Quarter of 2018/19 financial year

Deputy Director-General: Fiscal and Economic Services (Mr H Malila) Chief Director: Strategic Management Information (Ms Z Ishmail) Harry.Malila@westerncape.gov.za Zeenat.Ishmail@westerncape.gov.za 021 483 6673 / 8079 021 483 3639 Legislature Building, 7 Wale Street, Cape Town