1. DEPARTMENT OF DEFENCE: FINANCIAL YEAR 2011/12: FINANCIAL PERFORMANCE 1ST AND 2ND QUARTERS
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2. AIM
To inform the Portfolio Committee on Defence and Military Veterans on Defence’s 1st and 2nd quarter financial performance for the 2011/12 financial year. 2
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3. FY 2011/12 1st QUARTER FINANCIAL PERFORMANCE
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4. FY 2011/12: 1ST QUARTER EXPENDITURE COMPARISON PER PROGRAMME4
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5. FY 2011/12: 1ST QUARTER EXPENDITURE COMPARISON PER SCOA CLASSIFICATION5
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6. FY 2011/12: 1ST QUARTER REVENUE COLLECTION COMPARISON PER SCOA CLASSIFICATION6
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7. FY 2011/12: 1st QUARTER SPECIAL DEFENCE ACCOUNT FINANCIAL PERFORMANCESN
CATEGORIES
FA %
2011
ORDER %
PAID %
2010 a b c d e 1
SDPs 50 48 15 2
Largest Projects 68 66 6 5 3
Capital 63 57 10 4
Operating 77 62 9 13
Sensitive 87 14
Total 67 7
Excluding SDPS 72 8 7
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8. FY 2011/12 MID YEAR ADJUSTMENTS
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9. ADJUSTED ESTIMATES OF NATIONAL EXPENDITURE (AENE): 2011Sn
Item
Requested
Received
Deviation a b c d RM 1.
Unforeseeable and Unavoidable
170.9,7
81,4
(89,5)
i. OP COPPER
81.4
ii. OP CORONA
59,2
(59,2)
iii. Defence Force Service Commission
30,3
(30,3) 2.
Self-Financing
62,7
i. SDA
54,1
ii. GDA
8,6 3.
Unforeseeable Economic Events – Salary Increase Additional 1,3%.
342,9
200,0
(142,9) 4.
Total Adjustments
576,5
344,1
(232,4) 5.
Other – The Warburg Dillon Read Planning Module used for the management of the SDPs and controlled by NT were reduced by RM600 in the current financial year due to delays. It is to be noted that the outer years will be adjusted ito revised cash flow requirements.
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10. MID YEAR ADJUSTMENTS: REVENUE
SCOA Description
Reason for Change 
REVENUE: FINANCIAL ASSETS
Decrease: Penalties Imposed on Contracts and Exchange Rate Profits are not as high as expected. Discussions with Armscor is currently underway to enhance the accuracy of projections and reporting. Recovery of Study Loans has been adjusted upwards from R 16,400 to Rm4,4 based on current recoveries.
FINES
Increase: The admin fee charged on Garnishee orders has increased with 420% from Rm 3,5 in 2010 to a projected Rm 10,5. This amount represents 5 % of the amount paid by members according to court orders.
SALES OF GOODS & SERVICES PRODUCED BY DEPT
Decrease: Services rendered to Private Institutions has not realised as planned and were reduced from Rm 91 to a projected Rm 10,5 based on current trends. Line items adjusted upwards are increases in house rent, duty busses, etc as a direct consequence of salary increases.
SALES OF SCRAP, WASTE & OTHER GOODS
Increase: From Rm 18,7 to Rm 21,1 based on current collection trends relating to Sale of DoD waste products and redundant equipment.
SALES OF CAPITAL ASSETS
Decrease: Sale of Main Equipment has not realised as planned. Discussions with Armscor is currently underway to enhance the accuracy of projections and reporting.
TOTAL
Decrease: Total revenue estimate has been reduced from RM 803 to Rm 561 for the 2011/12 FY.
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11. FY 2011/12 2nd QUARTER FINANCIAL PERFORMANCE
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12. FY 2011/12: MID YEAR EXPENDITURE COMPARISON: PER PROGRAMME AS AT 30 SEPTEMBER 2011
Note: SANDF salary increases not yet implemented. 12
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13. FY 2011/12: MID YEAR EXPENDITURE COMPARISON PER SCOA AS AT 30 SEPTEMBER 201113
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14. FY 2011/12: MID YEAR COMPARISON: REVENUE AS AT 30 SEPTEMBER 201114
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15. FY 2011/12: SPECIAL DEFENCE ACCOUNT MID YEAR COMPARISONSN
CATEGORIES
FA %
2011
ORDER %
PAID %
2010 a b c d e 1
SDPs 52 50 3 17 2
Largest Projects 67 65 13 14
Capital 75 70 26 23 4
Operating 84 77 27 28 5
Sensitive 87 35 21 6
Total 66 18 7
Excluding SDPS 71 19 15
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16. ABRIDGED REPORT ON STATE OF EXPENDITURE AS AT 30 SEPTEMBER 2011SN
EXP END OF SEP 2011
PROJ TO END MAR 2012
TOTAL
AENE
DEV RM a b c d e 1
15 770,7
18 810,7
34 581,4
34 349,0
(232,4)
45,9% OF AENE
Note: Deviation mainly due to unforeseeable and unavoidable expenditure not received through the AENE:
Treasury Memoranda Submitted – RM89,5.
Improvement in Conditions of Service – RM142,9. 16
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17. CUMULATIVE STATE OF EXPENDITURE
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18. Discussions
Thank You 18
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