Expenditure Outcome for 2011/12 and Spend as at 31 July for 2012/13 Select Committee of Finance 29 August 2012

Thank you 2 Content Expenditure outcome for the 2011/12 financial year Spending as at 31July 2012 for 2012/13 Plans and systems to deter fraud and corruption in Province

Expenditure outcome for 2011/12 Pre-Audited Payments as at 31 March

Expenditure outcome for 2011/12 Pre-Audited Payments as at 31 March 2012 (1) Provincial Payments Provincial payments amounted to R billion (99.6 per cent) of the revised estimate of R billion which is R2.890 billion (8.5 per cent) more than what was spent as at 31 March Net under spending of R million (0.4 per cent) mainly occurred at Transport & Public Works amounting to R million, Health amounting to R million and Education amounting to R million. Education payments is R billion (99.9%) against the revised provision of R billion. Health payments amount to R billion (99.7%) of the revised appropriation of R billion. Social Development payments aggregate to R1.317 billion (98.9%) of the revised provision of R1.332 billion. 4

Expenditure outcome for 2011/12 Pre-Audited Payments as at 31 March 2012 (2) Conditional grant spending amounted to R8.292 billion (99.8 per cent) against the total national allocation of R8.312 billion. Provincial infrastructure payments aggregated to R3.692 billion (98.9 per cent) against the revised appropriation of R3.732 billion of which: Capital payments total R2.862 billion or 99.7 per cent against the revised appropriation of R2.871 billion and is 78 per cent of total infrastructure budget Current Infrastructure total R million or 96.4 per cent against the revised appropriation of R million and is 22 per cent of total infrastructure budget. 5

Expenditure outcome for 2011/12 Pre-Audited Infrastructure Payments as at 31 March

Expenditure outcome for 2011/12 Pre-Audited grant payments as at 31 March 2012 (1) 7

Expenditure outcome for 2011/12 Pre-Audited grant payments as at 31 March 2012 (2) 8

Expenditure as at 31 July 2012

Expenditure outcome for 2012/13 First Quarter payments as at 31 July

Expenditure outcome for 2012/13 First Quarter payments as at 31 July 2012 (1) Departmental payments total R billion (29.6%) against the revised estimate of R billion following a increase of R million (from approved roll-overs) on the main estimate of R billion for 2012/13. Overspending of R million is projected comprising:  R million from Health due to the opening of beds to accommodate the shift of services to the Khayelitsha District hospital.  R1.384 million from Human Settlements due to an incorrect PERSAL interface and difference between budgeted cost of living increase and negotiated salary increase. 11

Expenditure outcome for 2012/13 First Quarter payments as at 31 July 2012 (2) Education payments come to R4.423 billion (31.1%) against the revised allocation of R billion following an increase of R0.804 million on the main allocation of R billion from approved roll-overs. Health expenditure is R4.301 billion (29.4%) against the revised provision of R billion following an increase of R million (0.1%) on the main provision of R billion from approved roll-overs. Social Development spending aggregate to R million (29.2%) of the main appropriation of R1.412 billion. 12

Expenditure outcome for 2012/13 First Quarter payments as at 31 July 2012 (3) Conditional Grant payments is R2.493 billion (28.3%) against the revised allocation of R8.824 billion following a increase of R million (0.2%) from approved roll- overs on the main allocation of R8.809 billion for 2012/13. Infrastructure payments total R million of which top payments comprise Transport & Public Works with R million, Health with R million and Education with R million. 13

Expenditure outcome for 2012/13 First Quarter Infrastructure payments as at 31 July

Expenditure outcome for 2012/13 First Quarter grant payments as at 31 July 2012 (1) 15

Expenditure outcome for 2012/13 First Quarter grant payments as at 31 July 2012 (2) 16

Plans and Systems to Deter Fraud and Corruption

Plans and systems to deter fraud and corruption Holistic approach to towards preventing fraud and corruption Strengthening of governance environment The use and introduction of electronic systems Development of provincial training strategy 18

Plans and systems to deter fraud and corruption Strengthening of governance environment: Full Review of Provincial Treasury Instructions Development of a Departmental SCM systems and Delegations Development of SOPs, transaction checklists, reporting tools, frameworks etc. Strengthened M&E process via compliance assessment, reporting Introduced annual Financial Governance Review and Outlook process 19

Plans and systems to deter fraud and corruption The use and introduction of electronic systems: Current Transversal Systems o Centralised access control and user account management o Enforce use of Logis for all payments for goods and services o Limit payments via BAS o Monthly expenditure reports to departments o Monthly monitoring of personnel establishments and expenditure o Spend analysis tool to be introduced Western Cape Supplier Database (WCSD) o Will only do business with registered suppliers from 1 September 2012 o All supplier details recorded on WCSD (tax, BEE, conflict of interest) o Supplier details compared monthly with Persal information E-Sourcing o E-procurement system upgraded o Electronic procurement for purchases between R R o Electronic procurement for purchases above R o Contract management system to be explored 20

Plans and systems to deter fraud and corruption Development of provincial training strategy: Systems training o Systems training unit in place o Comprehensive training on all financial systems SCM Focus Group o Monthly meetings o Departmental SCM: Heads leaders of projects SCM Training o Currently on ad-hoc basis o Minimum SCM competencies issued o In discussion with Tertiary institutions for formal SCM courses 21

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