LIMPOPO DEPARTMENT OF SPORT,ARTS AND CULTURE PRESENTATION OF THE THIRD AND FOURTH QUARTER CONDITIONAL GRANT SPENDING TO THE SELECT COMMITTEE ON APPROPRIATIONS DATE: 08 MAY

OUTLINEOF THE PRESENTATION Background Transfers for 2012/13 financial year Expenditure trends Community library services grant allocation Breakdown of the allocation per economic classification Infrastructure expenditure Compensation of employees Goods and services Capacity constraints which impacted on these outcomes Department’s monitoring capacity Commitments to date : roll over requests Interventions Infrastructure plans for 2013/14 2

BACKGROUND The Limpopo Department of Sport,Arts and Culture (LDSAC) is reporting on the libraries planned for the 2010/11, 2011/12 No projects were planned for 2012/13 financial year due to the backlog experienced in the previous financial years All library infrastructure projects are implemented by the Limpopo Department of Public Works (LDPW) No service delivery agreement entered into with LDPW in 2010/11 and 2011/ 12 financial years Misalignment of LDSAC and LDPW Annual Performance Plans. The LDSAC projects were treated as ad hoc projects as they did not appear in the LDPW plans Libraries were not standardised which resulted in most of the libraries not costed accordingly, hence variation orders No projects implemented are under litigation

BACKGROUND In December 2011, a high level interdepartmental team comprising LDSAC, LDPW, Provincial Treasury and DAC was established to develop a turnaround strategy to improve the grant spending In January 2012, a detailed plan was developed and submitted to the first LDPW Administrator for implementation, however his office didn’t implement and no reasons were provided The plan was resubmitted to the second Administrator, in March 2012 In January 2013, the Director-General convened an infrastructure meeting wherein the LDPW Administrator, Mr Dondashe informed the meeting that the Department could not implement the projects due to capacity challenges faced in SCM. He further informed the meeting that service providers will be appointed before 31 March 2013 and the budget will be committed 4

LIBRARY CONDITIONAL GRANT TRANSFERS FOR 2012/13 FINANCIAL YEAR MONTHAMOUNT TRANSFERRED (R’000) April July October January TOTAL Total amount spent i.e. 72% Total amount unspent i.e. 28% 5

EXPENDITURE TRENDS MONTHSAMOUNT TRANSFERR ED AMOUNT SPENT PER,QUARTER AMOUNT UNSPENT % SPENDING April21,2648,18213,08238% July17,97410,0867,88856% October21,61013,0358,57560% January7,97418,419(10 455)(231%) Total68,82249,72219,10072% 6

EXPENDITURE TRENDS OVERALL EXPENDITURE TRENDS FIRST QUARTER (R’000) SECOND QUARTER (R’000) THIRD QUARTER (R’000) FOURTH QUARTER (R’000) AMOUNT TRANSFERRED R21,264R17,674R21,610R7,974 EXPENDITURER8,182R18,268R31,303R49,722 AMOUNT UNSPENT R13,082(R294)(R 9,693)(R 41,748) 7

COMMUNITY LIBRARY SERVICES GRANT ALLOCATION The total Library conditional grant budget for the 2012/13 financial year was R68,822,000 Received a roll over of R13,871,000 during the adjustment budget, November 2012 The total allocation is therefore R82,693,000 Of the total budget, R45,061,000 was allocated for Library Infrastructure The Infrastructure Budget takes 54% of the total allocation of the grant. 8

BREAKDOWN OF THE ALLOCATION PER ECONOMIC CLASSIFICATION PER ECONOMIC CLASSIFICATION BUDGET ADJUSTMENTTOTAL Compensation of employees11,774,000.0,0011,774,000 Goods and services21,085,0002,510,00023,595,000 Payment for Capital Assets : Buildings and other fixed structures33,700,00011,361,00045,061,000 Machinery and equipment2,263,0000 TOTAL68,822,00013,871,00082,693,000

INFRASTRUCTURE EXPENDITURE The budget allocated for the library infrastructure was R45,061,000 The expenditure as at 31 March 2013 is R33,511,915, i.e. 74% The remaining unspent budget of R11,373,886 is for the additional scope of work and the repairs and maintenance of the eleven libraries. An amount of R10,896,000 has been committed and requested as roll over.

11 PLANNED INFRASTRUCTURE PROJECTS FOR 2009/10 PROJECT 2012/13 BUDGET BUILDING PROGRESS STATUS TO DATE BUDGET SPENT IN THIRD QUARTER BUDGET SPENT IN FOURTH QUARTER EXPENDITURE % BY 31 MARCH 2013 Building of Ga - Phaahla Library District: Sekhukhu ne R367,000100%0,00R314,23886% Building of Thulamela Library District: Vhembe R1,194, %0,00R967, 23281%

12 PLANNED INFRASTRUCTURE PROJECTS FOR 2010/11 PROJECT 2012/13 BUDGET BUILDING PROGRESS STATUS TO DATE BUDGET SPENT IN THE THIRD QUARTER BUDGET SPENT IN FOURTH QUARTER EXPENDIT URE % AS AT 31 MARCH 2013 Building of Bakgoma Library District: Waterberg R2,467,000100%R732,429R1,659, % Building of Rapotokwa ne Library District: Waterberg R1,867,000100%R30,232R1,129, %

13 PLANNED INFRASTRUCTURE PROJECTS FOR 2010/11 PROJECT 2012/13 BUDGET BUILDING PROGRESS STATUS TO DATE BUDGET SPENT IN THIRD QUARTER BUDGET SPENT IN FOURTH QUARTER EXPENDIT URE % AS AT 31 MARCH 2013 Building of Mutale Library District: Vhembe R3,685,000100%R765,487R1,265,55634% Building of Shiluvane Library District: Mopani R1,667,000100%R92,598R1,393,72084%

14 PLANNED INFRASTRUCTURE PROJECTS FOR 2011/12 PROJECT 2012/13 BUDGET BUILDING PROGRESS STATUS TO DATE BUDGET SPENT IN THIRD QUARTER BUDGET SPENT IN FOURTH QUARTER EXPENDI TURE % AS AT 31 MARCH 2013 Building of Saselamani Library District: Mopani R5,901,000100%R2,936,389R3,959,01267% Building of Mulati Library District: Mopani R5,803,000100%R2,690,745R4,119,09771%

15 PLANNED INFRASTRUCTURE PROJECTS FOR 2011/12 PROJECT 2012/13 BUDGET BUILDING PROGRESS STATUS TO DATE BUDGET SPENT IN THIRD QUARTER BUDGET SPENT IN FOURTH QUARTER EXPEND ITURE % AS AT 31 MARCH 2013 Building of Vlakfontein Library District: Sekhukhun e R5,600,000100%R4,005,463R4,975,69489% Building of Musina- Nancefield Library District: Vhembe R5,024,000100%R3,497,385R4,175,05583%

16 PLANNED INFRASTRUCTURE PROJECTS FOR 2011/12 PROJECT 2012/13 BUDGET BUILDING PROGRESS STATUS TO DATE BUDGET SPENT IN THIRD QUARTER BUDGET SPENT IN FOURTH QUARTER EXPENDITUR E % BY 31 MARCH 2013 Building of Molepo Library District: Capricorn R5,668,000100%R3,071,119R3,903,02769% Building of Shongoan e Library District: Waterber g R5,620,000100%R3,420,220R5,569,47299%

COMPENSATION OF EMPLOYEES The budget allocated for the compensation of employees was R11,774,000 The amount spent as at 31March 2013 was R8,535,458 which is 72% The recruitment could not be done as the new libraries were not completed and functional. An amount of R3,238,541 was not spent The vacant positions have since been advertised

GOODS AND SERVICES The budget allocated for goods and services was R23,595,000 The amount spent as at 31 March 2013 was R7,621,480 i.e.32%

BREAKDOWN OF GOODS AND SERVICES PER BUDGET ITEM DESCRIPTIONBUDGETEXPENDITURE IN THE THIRD QUARTER EXPENDITURE IN THE FOURTH QUARTER UNSPENT BUDGET REASONS Data LinesR9,228,000R3,025,7098R6,455,623R2,772,377Late appointment of service providers due to lack of challenges in the SCM unit BooksR3,417,000R0,00R114,789R3,302,211 PeriodicalsR500,000R0,00 R500,000 Office furniture R1,000,000R0,00R23,477R976,523 Office Equipment R1,150,000R18,464R63,541R1,086,459

CAPACITY CONSTRAINTS WHICH IMPACTED ON THESE OUTCOMES The Senior Manager for Library services, the Provincial Librarian and the infrastructure Manager did not possess the requisite skills and competencies to manage libraries The Department is highly reliant on the capacity of the LDPW to implement and monitor infrastructure projects The LDSAC SCM unit did not have capacity to procure other services required for libraries The infrastructure projects were not aligned to the IDPs of relevant municipalities as well as the relevant APPs and Strategic plans of LDPW and LDSAC Inability to mediate land disputes between the Municipalities and the traditional leadership The change in section 100 (1) (b) Administrators at LDPW

DEPARTMENT’s MONITORING CAPACITY The LDSAC relied on the National Department personnel to provide oversight on the infrastructure projects An inter-Departmental Team comprising Provincial Treasury, LPDW, DAC was established which met weekly Monthly inter-departmental forum on infrastructure projects convened by LDPW Quarterly progress meetings convened by DAC Weekly visits to libraries by LDSAC staff

COMMITMENTS TO DATE : ROLL OVER REQUESTS NAME OF LIBRARYPURPOSEAMOUNT (R’000) Vlakfontein Library For the completion of additional scope of Work624 Musina- Nancefield Library For the completion of additional scope of Work674 Molepo Library For the completion of additional scope of Work1,765 Rapotokwane Library For the completion of additional scope of Work737 Bakgoma Library For the completion of additional scope of Work807 Mutale Library For the completion of additional scope of Work2,419 Shiluvani Library For the completion of additional scope of Work273 Mulati Library For the completion of additional scope of Work1,604 Saselemane Library For the completion of additional scope of Work1,942 For the completion of additional scope of Work51 SUBTOTAL: CAPITAL EXPENDITURE For the completion of additional scope of Work10,896 22

COMMITMENTS TO DATE : ROLL OVER REQUESTS NAME OF LIBRARYPURPOSESTATUSAMOUNT Supply and delivery of 3000 foam stress balls Procurement of Promotional Materials Order issued Awaiting for delivery of goods 108 Library Furniture for shiluvane library Procurement of Furniture Order issued. Furniture delivered after cut off payment date. 133 Library Furniture Musina Nancefield Procurement of Furniture Order issued. Furniture delivered after cut off payment date. 266 Library Furniture Mertz Library Mopani Procurement of procurement of Furniture Order issued. Furniture delivered after cut off payment date. 81 Office Chairs high back swivels Procurement of furniture Order issued. Furniture delivered after cut off payment date. 3 23

COMMITMENTS TO DATE : ROLL OVER REQUESTS NAME OF LIBRARYSTATUSAMOUNT (R’000) Cabling and networking, Bakgoma, Mutale, Shiluvane and Rapotokwane Community libraries Cabling not yet completed 899 Cabling and networking of Vlakfontein, Musina,-Nancefield, Ga- Molepo and Westernburg community libraries Cabling not yet completed 996 Building materials for maintenance at Haenetsburg library. Procurement of building material delayed by LDPW, hence maintenance was not carried out /done53 Building materials for maintenance of Gravelotte library Procurement of building material delayed by LDPW, hence maintenance was not carried out /done94 Building materials for renovation of Bela Bela municipal library274 Building materials for maintenance of Giyani library Procurement of building material delayed by LDPW, hence maintenance was not carried out /done80 Building materials for maintenance of Vhembe District library.258 Maintenance for Giyani public library Procurement of building material delayed by LDPW, hence maintenance was not carried out /done574 Maintenance for Marble Hall library258 24

COMMITMENTS TO DATE : ROLL OVER REQUESTS NAME OF LIBRARYSTATUSAMOUNT Maintenance at Capricorn district Library Delayed on delivery of materials208 Supply and delivery of Library Materials for Tzaneen District library. Delivery not complete, though part payment has been made 121 Supply and delivery of Library Materials to Capricorn District library. Delivery not complete, though part payment has been made 225 TOTAL: GOODS AND SERVICES 4,631 25

INTERVENTIONS Appointed a competent Senior Manager to head SCM unit Advertised the positions of Infrastructure Manager, acquisition librarians and ICT specialists Transferred the qualified Senior Manager from Museum and Heritage unit to head library services and the Librarian from HRM to Library services Appointed the General Manager to provide strategic leadership

INTERVENTIONS cont. Enter into long term (2-3 year ) contracts with service providers Directly contract service providers for maintenance of all libraries MEC escalated the challenges on the to Minister of Public Works Request made to LDPW Administrator to appoint the IDT to assist in the building of the new libraries

INFRASTRUCTURE PLANS FOR 2013/14 NUMBER OF PLANNED PROJECTS FOR 2013/2014 NAMES OF LIBRARIES 2 New libraries to be builtPhokwane, and Nzhelele. 8 Libraries to be upgradedAganang, Letsitele, Lebowakgomo, Westenburg, Giyane, Phalaborwa, Ga – Kgaphane and Vaalwater 10 Libraries to be maintainedPolokwane, Rixile, Leboneng, Alldays, Tzaneen, Groblesrdal, Mogwadi, Mukondeni, Soetfontein and Musina 28

Thank you! 29