1. 1 Provincial Budget Outcome of Conditional Grants and CAPEX As at 31 March 2006 Select Committee on Finance Presentation by Northern Cape Provincial Treasury 2 May 2006

2. 2 Objectives To brief the Select Committee on Finance on the Provincial Expenditure Outcomes as at 31 March 2006: Aggregate position Summary of total CAPEX Conditional Grants Reasons for under/ over expenditure Summary of Infrastructure

3. 3 Broad Overview The total expenditure amounts to R5, 218 billion, which is 98% of the Adjusted Budget. Net under expenditure amounts to R102 million or 2% of the Adjusted Budget. Departments that showed material under expenditure are: Social Services - R74 million; Provincial Treasury - R28, 5 million and Department of Agriculture and Land Reform - R25, 2 million. Two departments shows an over expenditure namely: Health - R60,363 million or 6% of the adjusted budget. Office of the Premier - R0, 359 million or 4% of the adjusted budget. Total Spending on Capital Expenditure amounts to R314, 9 million or 90% of the adjusted budget. Under expenditure of R34 million or 10% of the adjusted budget. Expenditure on Conditional grants amounts to R1,918 billion or 99.7% of the available funds has been spent as at 31 March 2006.

4. 4 Aggregate Expenditure as at 31 March 2006

5. 5 Summary of Capital Expenditure per Department as at 31 March 2006

6. 6 Conditional Grants by Grant Type (Annexure A)

7. 7

8. 8 Aggregate Expenditure of CG as at 31 March 2006 Total Adjusted Budget : R2,018 billion Total received : R1,924 billion Expenditure to date : R1,918 billion 99.6% of total received funds 95% of Adjusted Budget

9. 9 Detail on Conditional Grant per Department Department of Agriculture Grants Comprehensive Agriculture Support (CASP) Land Care Programme Agriculture Disaster Management Budget Outcome Adjusted Budget : R53,7 million Total spent as at 31 March 2006 – R33, 9 million 63% adjusted budget CASP : Adjusted Budget – R16 million Total spent as at 31 March 2006 – R9, 1 million 57% of Adjusted Budget

10. 10 Detail on Conditional Grant per Department Department of Agriculture Grants Cont. Budget Outcome Land Care Programme : Adjusted Budget – R3,9 million Expenditure as at 31 March 2006 – R1, 9 million 49% of Adjusted Budget Under spending by R2 million or 51% of the adjusted budget Agricultural Disaster Management : Adjusted Budget – R33,7 million Expenditure as at 31 March 2006 – R22, 8 million 68% of Adjusted Budget

11. 11 Department of Agriculture (Cont) Reasons for under expenditure According to dept the following attributed to the under expenditure: CASP: is due to the non delivery of suppliers in terms of the tender specifications. Land Care Programme: delay in the tendering processes and other project related problems. Agricultural Disaster Management: slower than anticipated lodging of claims by farmers.

12. 12 Department of Education Education Grants HIV and Aids (Life skills Education) National School Nutrition Programme Budget Outcome Adjusted budget : R33,4 million Spending as at 31 March 2006 – R30, 7 million 92% of Adjusted Budget HIV & AIDS : Adjusted Budget – R2,3 million Total spent as at 31 March 2006 – R2 million 87% of Adjusted Budget

13. 13 Department of Education National School Nutrition Programme : Adjusted Budget – R31 million Total spent as at 31 March 2006 – R28,7 million 93% of Adjusted Budget

14. 14 Department of Education Reasons for under spending in relation to Adjusted Budget HIV & AIDS delay in the tendering process. National School Nutrition Programme relates to the tendering processes for Gardening Equipment and Kitchen Utensils process to commence in this financial year.

15. 15 Department of Health Health Grants Hospital Professions Training & Dev Comprehensive HIV & AIDS Hospital Management & Quality Improvement Hospital Revitalisation National Tertiary Services Forensic Pathology Services Grant

16. 16 Department of Health (Cont) Budget Outcome Adjusted budget : R295 million Spending as at 31 March 2006 – R289 million 98% of Adjusted Budget

17. 17 Department of Health (Cont) Budget Outcome Comprehensive HIV & AIDS : Adjusted Budget – R52,6 million Expenditure as at 31 March 2006 – R57, 7 million 110% of Adjusted Budget Health Professions Training & Development : Adjusted Budget – R41,1 million Expenditure as at 31 March 2006 – R41,1 million 100% of Adjusted Budget

18. 18 Department of Health (Cont) Budget Outcome Hospital Management & Quality Improvement : Adjusted Budget – R10, 1 million Expenditure as at 31 March 2006 – R10, 1 million 100% of Adjusted Budget Hospital Revitilisation : Adjusted Budget – R110,6 million (Include : R20 million – new allocation, R20,9 million rollover) Expenditure as at 31 March 2006 – R104 million 94% of Adjusted Budget

19. 19 Department of Health (Cont) National Tertiary Services : Adjusted Budget – R76,3 million Expenditure as at 31 March 2006 – R76,3 million 100% of Adjusted Budget Forensic Pathology Service : Adjusted Budget – R4,4 million Expenditure as at 31 March 2006 – R12 000 0% of Adjusted Budget

20. 20 Department of Health (Cont) Reasons for under/ over expenditure as sited by the department Comprehensive HIV & AIDS Preliminary IYM- indicates grant is overspending. Analysis shows that the department will under spend the grant by R3,5 million after the necessary journals have been passed. The under-expenditure is mainly on capital expenditure which is a result of capacity within the department and the identification of treatment sites that need to be either renovated or constructed. Hospital Management & Quality Improvement 100% expenditure (break even).

21. 21 Department of Health (Cont) Hospital Revitilisation According to IYM - programme has under spent by R7 million Analysis shows an under spending of R3 million, which is due to delay in the processing of the payments. The amount is thus committed.

22. 22 Department of Health (Cont) Forensic Pathology Services Grant The grant was received during the adjustment period. The under spend amount is mostly of capital nature and has been fully committed.

23. 23 Department of Housing & Local Government Housing & LG Grants Integrated Housing and Human Settlement Development Human Settlement and Redevelopment Municipal Support Grant Budget Outcome Adjusted budget : R93,7 million Spending as at 31 March 2006 – R96, 3 million 103% of Adjusted Budget

24. 24 Department of Housing & Local Government. Budget Outcome Integrated Housing and Human Settlement Development : Adjusted Budget – R79,9 million Expenditure as at 31 March 2006 – R82, 5 million 103% of Adjusted Budget Human Settlement and Redevelopment : Adjusted Budget – R3,2 million ( Rollover) Expenditure as at 31 March 2006 – R3,2 million 100% of Adjusted Budget

25. 25 Department of Housing & Local Government. Budget Outcome Municipal Support Grant : Adjusted Budget – R10,6 million Expenditure as at 31 March 2006 – R10, 6 million 100% of Adjusted Budget

26. 26 Department of Housing & Local Government. (Cont) Reasons for over expenditure: Integrated Housing and Human Settlement Development : According to analysis- grant has been under spent by R6, 6 million. department utilized the amount to clear the long outstanding amount of R9, 2 million suspense account. Human Settlement Grant- 100% spent (break even). Municipal Support Grant- 100% spent (break even).

27. 27 Department of Social Services and Population Development Social Development Grants: Integrated Social Development Service Grant Social Assistance Administration Grant Social Assistance Transfer Grant

28. 28 Department of Social Services and Population Development - Cont Budget Outcome Adjusted budget : R1,335 billion Actual received: R1, 275 billion Spending as at 31 March 2006 – R1, 277 billion 96% of Adjusted Budget 99% of actual received

29. 29 Department of Social Services and Population Development - Cont Budget Outcome Integrated Social Development Service : Adjusted Budget – R8,8 million (rollovers) Expenditure as at 31 March 2006 – R8, 8 million 100% of Adjusted Budget HIV/AIDS (Community Based Care) and Integrated Social Development Service - grants incorporated into ES in 2005/06. Social Administration Grant : Adjusted Budget – R94,7 million Expenditure as at 31 March 2006 – R91, 1 million 96% of Adjusted Budget

30. 30 Department of Social Services and Population Development - Cont Budget Outcome Social Transfer Grant : Adjusted Budget – R1,232 billion Actual received: R1, 180 billion Expenditure as at 31 March 2006 – R1, 177 billion 95% of Adjusted Budget 100% of the available funds.

31. 31 Department of Social Services and Population Development - cont Reasons for under expenditure: Integrated Social Development Service Grant 100% spent Social Administration Grant and Social Assistance Transfers The under expenditure on budget is due to the strengthening of the indemnity process (Validation of Beneficiaries, Streamlining of the Grant Management System (GMS) and Project Isidima (the use of new technology requiring photo's of beneficiaries), hence less beneficiaries were registered than anticipated. However, 99% of available funds has been spent.

32. 32 PROVINCIAL INFRASTRUCTURE GRANT

33. 33 PROVINCIAL INFRASTRUCTURE GRANT Budget Outcome Adjusted budget: R204 million. Actual received: R162 million Spending as at 31 March 2006: R188 million 92% of Adjusted Budget 116% of the available funds.

34. 34 PROVINCIAL INFRASTRUCTURE GRANT - cont Budget Outcome per Department: Department of Housing and Local Government Adjusted budget : R5,1 million Spending as at 31 March 2006 – R5,1 million 100% of Adjusted Budget Department of Education Adjusted budget : R54,9 million Spending as at 31 March 2006 – R53, 9 million 98% of Adjusted Budget 194% of available funds

35. 35 PROVINCIAL INFRASTRUCTURE GRANT - cont Department of Transport, Roads and Public Works Adjusted budget : R115,4 million Spending as at 31 March 2006 – R98, 7 million 86% of Adjusted Budget 98% of available funds Reason for the under expenditure is due to delay in tendering processes. As a result major projects started late. Department of Health Adjusted budget : R23, 3 million Spending as at 31 March 2006 – R26, 6 million 115% of Adjusted Budget and available funds Department of Agriculture and Land Reform Adjusted budget : R5,3 million Spending as at 31 March 2006 – R3, 4 million 75% of Adjusted Budget and available funds Reason for under expenditure is due to the delay in the tendering processes by Public Works.

36. 36 Total Infrastructure (Maintenance & Capital)

37. 37 Detail on Infrastructure Provincial Treasury’s analysis: actual expenditure amounts to R579 million or 95% of the adjusted budget. Province shows an under spending of R28, 2 million or 5% of the adjusted budget. Department of Health- R17, 7 million, Social Services - R8, 7 million, Agriculture - R8 million.

38. 38 INFRASTRUCTURE- Maintenance

39. 39 Detail on Infrastructure cont. MAINTENANCE EXPENDITURE- shows a net over expenditure of R1, 3 million or 1% of the adjusted budget. The over expenditure is mainly attributed to Transport at R5,8 million

40. 40 INFRASTRUCTURE-Capital

41. 41 Detail on Infrastructure cont. CAPITAL EXPENDITURE- shows an under expenditure of R29, 5 million or 7% of the adjusted budget. Agriculture- relates to the non delivery of suppliers in terms of the tender specifications and delays in the tendering processes and other project related problems. Housing- The over expenditure in is as result of R9,205 million expenditure incurred during the 1999/00 financial year. Social Services and Population Development – under expenditure are due to delays by the Department of Public Works in committing funds for the construction of a Secure Care Centre in Springbok. Health – under expenditure is due to the delay in processing of payments and the building of the mental hospital as a result of the rainy season.

42. 42 THANK YOU