1 13 September 2006 EXPENDITURE TO 30 JUNE 2006 bbbbbbbbbbbbbbbbb

2 CONTENTS OF PRESENTATION Opening Purpose: Sec 32 reporting Budget Challenges & Constraints Policy Imperatives Interventions & Corrective measures

3 PROJECTION METHODOLOGY If projections are calculated linearly for 3 months out of 12 then the projected expenditure is 25% of the total Projects start and stop at different times and this is not a suitable method for evaluating projects An alternative method of Activity Based Costing is used: –linear projections but with adjustments for individual projects and interventions such as performance bonuses and salary increases.

4 BUDGET

5 MAIN INDICATORS: Programmes

6 Projected for 3 months: (R1066 mil / 12) * 3 = R 267 mil DEPARTMENTAL UNDER- EXPENDITURE 30 JUNE 06

7 MAIN INDICATORS: Economic Classification -12% -28% -27% -40%

8 30 June 06 Spending Outcomes 19% 23% 15% 26% 7% % of budget spent: Target = 25%

9 PROGRAMME 3: Roads Infrastructure

10 Approaches to bridges washed away

11 Bridge decks damaged

12 Drainage structures (pipes) exposed

13 Gravel wearing course washed away

14 Gravel wearing course washed away

15 Erosion damage along roads Erosion damage along roads

16 Underlying damage Underlying damage due to water ingress into brittle and cracked seals due to water ingress into brittle and cracked seals The total effect will only be evident in the months to come…

17 Underlying damage Underlying damage due to water ingress into brittle and cracked seals due to water ingress into brittle and cracked seals

18 Resultant damages

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20 MAIN INDICATORS: Programmes -32% -7% -70% 0% +3% -300% % Over/Under linear projected amount

21 ROADS CONSTRUCTION Cash flow per month

22 ROADS CONSTRUCTION Capital full capacity spending

23 PROGRAMME 4: Public Transport

24 PROGRAMME 4: Traffic Management

25 PROGRAMME 1: Administration

26 PROGRAMME 2: Public Works

27 PROGRAMME 6: CBPWP

28 Works Expenditure for clients 30 June 06 28% 42% 10% 20% 16% 9% % of Linear projection: Target = 25%

29

30 Clinic Construction

31 SEDERHOF

32 REVENUE

33 REVENUE -20% -14% +25% Over/Under Projected

34 CHALLENGES AND CONSTRAINTS Infrastructure delivery Planning procedures Project Management Monitoring Consultants Client departments Floods Identify appropriate staff, engineers, project and financial managers Material supplies

35 Policy imperatives EPWP implementation Construction charter Financial institutions CIDB Taxi Recapitalisation – Testing stations 2010 requirements and deadlines

36 Interventions and corrective measures Appropriate staff for infrastructure delivery Changed planning patterns Fast-track payments Streamline operations Batho Pele: Testing stations and Revenue Authorities

37 THANK YOU