FREE STATE DEPARTMENT OF SPORT, ARTS, CULTURE AND RECREATION Presentation to Select Committee on Conditional Grants and Capital Expenditure on Under-Spending on the Community Library Services Grant 19 May 2010

8/29/20152 CONTENT Community Library Services Grant: Business Plan Community Library Services Grant: Expenditure Plan Expenditure Trends up to 31 December 2009 General Analysis of Trends Plan to Address Shortcomings Expenditure shifting plan for under-spending Up to date Expenditure at close of Financial Year Assessment of Department’s Monitoring Capacity

8/29/20153 BUSINESS PLAN: SUMMARY ProjectTarget DateBudget R’000 Provide ICT infrastructure to 59 libraries and maintain existing infrastructure Quarter Provide photocopiers to 30 libraries and maintain existing equipment Quarter Provide furniture to 23 libraries Quarter 3460 Provide A-V Equipment to 10 libraries Quarter 3220

8/29/20154 BUSINESS PLAN: SUMMARY ProjectTarget DateBudget R’000 Upgrade security at 35 libraries Quarters 3 and Upgrade 10 libraries Quarter Upgrade library collections with publications and subscriptions to periodicals and electronic publications Quarters Provide services to visually impaired at 15 libraries Quarter 3 375

8/29/20155 BUSINESS PLAN: SUMMARY ProjectTarget DateBudget R’000 Improve staff capacity with 63 appointments, training programmes and bursary scheme Quarter Transfers to municipalities Quarter Promote a culture of reading Quarter Administration of grantQuarters TOTAL ALLOCATION40 315

8/29/20156 EXPENDITURE PLAN & ACTUAL EXPENDITURE AllocationQuarter 1Quarter 2Quarter 3Quarter 4Total Amount % of total allocation 13.23%22.93%37.25%26.59% Actual expenditure % of planned expenditure 70.65%79.25%63.74%51.26% Deviation

8/29/20157 ANALYSIS OF LIBRARY SERVICES CONDITIONAL GRANT SPENDING UP TO QUARTER 3 ProjectsTotal BudgetQuarter 1Quarter 2Quarter 3Total Expenditur e To Quarter 3 % of Total Budget ICT Infrastructure % Photocopiers % Furniture % A-V Equipment % Security upgraded % Buildings upgraded % Library collections upgraded % Services to visually impaired % Improved staff capacity % Transfers to municipalities Promotion of a culture of reading % Grant Administration % - TOTAL %

8/29/20158 NOTES ON EXPENDITURE TRENDS ICT Infrastructure -Equipment and networks installed at 45 of 59 targeted libraries. -Delays with delivery of equipment and installation of networks: Contractor could not deliver and SITA had to appoint a new contractor. -Deviation from targeted expenditure due to late installation of networks and delays by SITA in invoicing for data lines.

8/29/20159 NOTES ON EXPENDITURE TRENDS Furniture and Equipment -Photocopiers installed as planned. Deviation in expenditure due to over- budgeting for maintenance and late invoicing. -A-V equipment installed as planned at 10 libraries. -Furniture delivered

8/29/ NOTES ON EXPENDITURE TRENDS Security upgraded -Electronic security systems installed as planned at 5 libraries. -Installation of burglar alarms and appointment of security services not achieved due to non-responsive bid documents and Provincial Treasury’s policy directives on arrangement of security contracts. -One of 4 security fences done. Public Works Dept. experienced challenges in appointing contractors

8/29/ NOTES ON EXPENDITURE TRENDS Buildings upgraded -Progress on one project only: Philippolis. -Deviation due to challenges experienced with the appointment of contractors. Transfer payments -Not done: municipalities to submit required documentation.

8/29/ NOTES ON EXPENDITURE TRENDS Improved staff capacity –Target: 63 additional staff appointed not achieved. –Recruitment delayed due to late approval to continue. –Library collections –Target: items of library material bought. – items delivered and subscription to electronic publications done. –Renewal of periodical subscriptions postponed till January. Contractor experienced challenges with invoicing. –Deviation caused mostly by slow delivery by SMMEs who experienced difficulties in obtaining seed money.

8/29/ NOTES ON EXPENDITURE TRENDS Services to visually impaired - SLA with Library for the Blind to be finalized. Number of Libraries served by Conditional Grant –Library collections upgraded: 20 libraries –ICT Infrastructure: 59 libraries –Photocopiers: 30 libraries –Additional staff: 50 libraries –Infrastructure: Renovations, security: 10 libraries

8/29/ GENERAL ANALYSIS OF TRENDS Under-expenditure caused mostly by: Delay in recruitment and appointment of staff. Challenges experienced with appointment of contractors for infrastructure projects. New Provincial Treasury directives on the arrangement of new contracts. Late or non-delivery of orders for library materials.

8/29/ PLANS TO ADDRESS SHORTCOMINGS Obtain approval to amend business plan to redirect under-expenditure to other projects where contracts are in place and delivery can be fast-tracked. Obtain approval from Provincial Treasury to deviate from directives on arrangement of new contracts, especially security contracts. For 2010/11 appoint an infrastructure manager to assist Public Works Dept. with infrastructure contracts and improve monitoring of infrastructure projects.

8/29/ PLANS TO ADDRESS SHORTCOMINGS Enter into an SLA with the Dept of Public Works and Rural Development to have a framework for service delivery. Expand the database of suppliers of library materials to have alternative suppliers in case of non-delivery. Strengthen the management capacity in the Library Services Directorate by filling 2 vacant posts of deputy director.

8/29/ EXPENDITURE SHIFTING PLAN FOR UNDER-EXPENDITURE ProjectAmount R’000 Upgrade library collections4 447 Provide photocopiers to 14 libraries266 Provide electronic security gates to 6 libraries Computer equipment and consumables Computer equipment and software for visually disabled 150 Additional training programmes250 Philippolis Upgrade1 400 Total8 929

8/29/ UP-TO-DATE EXPENDITURE AT CLOSE OF FINANCIAL YEAR AllocationQuarter 1Quarter 2Quarter 3Quarter 4Total Amount Actual expenditure (detailed breakdown available on) Deviation (8 805)124 Note: Under-expenditure (R68 000) on compensation budget and R on library materials (roll-over requested) Actual expenditure as % of total budget 9.35%18.17%23.74%48.43%99.69%

8/29/ ASSESSMENT OF DEPARTMENT’S MONITORING CAPACITY Financial Control Committee meeting under chairpersonship of Head of Department. Chief Director: Cultural Affairs and Library Services and Director: Library and Archive Services. Expenditure trend-tracking overview by Chief Financial Officer. Finance, Supply Chain Management and Human Resources clerks appointed from grants to focus on grant commitments.

8/29/ ASSESSMENT OF DEPARTMENT’S MONITORING CAPACITY Reporting system: –Quarterly reports to National Department (and National Treasury via Provincial Treasury) with comments on variances. –Monthly IYM reports, with comments on variances. –Monthly progress and evaluation reports by Budget Managers.