1. BRIEFING TO THE SELECT COMMITTEE ON APPROPRIATIONS ON THE FINANCE BILL The Presidency and the Department of Women, Children and People with Disabilities
Presenter: Dondo Mogajane | DDG: Public Finance | 25 November 2015

2. Presentation outline Summary of the Finance Bill [B31-2015]
2008/09 Unauthorised expenditure for the Presidency
2010/11 Unauthorised expenditure for the Presidency
2010/11 Unauthorised expenditure for the Department of Women, Children and People with Disabilities

3. Finance Bill [B ]
The Bill is aimed at implementing the recommendations of the Standing Committee on Public Accounts on unauthorised expenditure and funding mechanism
The recommendations were adopted by the National Assembly on 23 June 2015
The Finance Bill provides for the authorisation of national government unauthorised expenditure arising from the 2004/05, 2007/08, 2008/09 and 2010/11 financial years
The Bill follows the procedure for authorisation of unauthorised expenditure as outlined in section 34(1)(a) and (b) of the Public Finance Management Act,1999 (PFMA)

4. Finance Bill [B ]
The following presentation is confined to the treatment of unauthorised expenditure incurred by two of the four affected national departments mentioned in the Bill, namely, The Presidency and the Department of Women, Children and People with Disabilities.
In terms of which, the Bill authorised that unauthorised expenditure incurred by the Presidency (2008/09 and 2010/11) and the Department of Women, Children and People with Disabilities (2010/11) be appropriated as direct charge against the National Revenue Fund to cover the overspending of the vote appropriations

5. 2008/09 Unauthorised expenditure for the Presidency
Programmes
2008/09
Final appropriation
Actual expenditure
(Over)/under spending
Administration
198,048
212,012
-13,964
Communications
21,328
20,522
806
Executive Coordination
92,359
93,712
-1,353
Subtotal
311,735
326,246
-14,511
Direct charge against the National Revenue Fund
Salary of the President
2,107 -
Salary of the Deputy President
1,897
Other*
1,000
Total
316,739
331,250
Economic Classification
Current Payments
277,718
293,805
-16,087
Compensation of employees
151,389
150,583
Goods and services
126,329
143,222
-16,893
Transfers and subsidies
29,444
29,575
-131
Payments of capital assets
9,577
7,870
1,707

6. 2008/09 Unauthorised expenditure for the Presidency
The Presidency overspent its 2008/09 budget of R316.7 million by R14.5 million or 4.6 per cent. This was in respect of expenditure incurred for:
Hosting of the National Orders and Awards Ceremony
Legal fees
Travel and subsistence and related expenses incurred for the mediation in Zimbabwe
Leave gratuity payments made to former Deputy President
Hosting of the National Disability Summit; United Nations Conventions and the creation of additional Ministries in the Presidency
Notes on the Presidency: 2008/09 unauthorised expenditure
R3.761 million for the National Orders & Awards Ceremony
R5 million for legal fees for the former Deputy President
R4.032 million for travel and subsistence and related expenses incurred for the mediation in Zimbabwe
R1 million was paid as leave gratuity for the Deputy President Phumzile Mlambo-Ngcuka.
R2.524 million for the hosting of the National Disability Summit, the United Nations Conventions (R1.353 million) and additional Ministries created in the Presidency (R1.171 million)

7. 2010/11 Unauthorised expenditure for the Presidency
Programmes
2010/11
Final appropriation
Actual expenditure
(Over)/under spending
Administration
291,759
312,994
-21,235
Communications
20,490
25,870
-5,380
Executive Coordination
495,214
497,027
-1,813
Subtotal
807,463
835,891
-28,428
Direct charge against the National Revenue Fund
Salary of the President
2,394
2,107
287
Salary of the Deputy President
2,156
1,843
313
Total
812,013
839,841
-27,828
Economic Classification
Current Payments
393,908
421,454
-27,546
Compensation of employees
228,735
236,302
-7,567
Goods and services
165,173
185,152
-19,979
Transfers and subsidies
399,087
399,369
-282
Payments of capital assets
19,018

8. 2010/11 Unauthorised expenditure for the Presidency
The Presidency overspent its 2010/11 budget of R812 million by R28.4 million or 3.5 per cent. This was in respect of expenditure incurred for:
Accruals carried forward from the 2009/10 financial year
Creation of additional Ministries for National Planning, and Performance, Monitoring and Evaluation, following the government restructuring process of 2010.
Legal fees
Travel and subsistence due to increasing international commitments by the principals in conflict resolution processes on the continent which were not planned for and fell outside of the adjustments budget process
Computer services to address additional capacity requirements emanating from new ministries as well as costs relating to the Presidential hotline
Leave gratuities obligations and municipal transfers for vehicle licenses
Notes on the Presidency: 20110/11 unauthorised expenditure
R million represents the net unauthorised expenditure after shifting and virement of R million by the Presidency. The total authorised expenditure for 2010/11 amounted to R million as mainly attributed to the following items:
Travel and subsistence (R million)
Communication (R8.649 million) Compensation of employees (R7.054 million)
Computer services (R4.070 million)
Agency support/ outsourced services (R3.096 million)
Audit costs (external) (R2.777 million)
The main sources of the R million identified as savings are:
Assets below the R5 000 threshold (R4.966 million)
Consultants/ advisory services (R million)
Machinery and equipment ( R2.715 million)
Contractors (R1.047 million)
Catering (R1.526 million)

9. 2010/11 Unauthorised expenditure for the Department of Women, Children an People with Disabilities

10. 2010/11 Unauthorised expenditure for the Department of Women, Children an People with Disabilities
Since the inception of the department, the budget for the Department of Women, Children and People with Disabilities (DWCPD) has been growing in real terms
Our understanding with the department has been that it should spend within its budget, and manage its budget pressures through the budget process
The department overspent its 2010/11 budget of R million by R3.728 million or 4 percent
Sources of budget pressures leading to unauthorised include;
R for international travel and accommodation
R2.594 million for the celebration of National Women’s Day, and
R in telecommunications related expenses. 10

11. 2010/11 Unauthorised expenditure for the Department of Women, Children an People with Disabilities
The Standing Committee on Public Accounts (SCOPA) has recommended that the unauthorised expenditure be financed as a direct charge against the National Revenue Fund.
The DWCPD no longer exists.
The additional funding recommended by the SCOPA should be allocated to the new and successor Department of Women. 11

12. THANK YOU