1. PRIORITISED NATIONAL DEPARTMENTS 2016/17 4TH QUARTER Presentation to the Standing Committee on Appropriations by Phelelani Dlomo and Musa Zamisa Dated: 3 August 2017

2. PRIORITISED DEPARTMENTS
PUBLIC ENTERPRISES
SMALL BUSINESS DEVELOPMENT
BASIC EDUCATION
WATER & SANITATION
CORRECTIONAL SERVICES
TRANSPORT

3. Small Business Development
SECTION A
Public Enterprises
Small Business Development
Basic Education

4. OVERALL PERCENTAGE (%) EXPENDITURE
2012/13 – 2016/17 TREND ANALYSIS

5. OVERALL DEPARTMENTAL UNDER/OVER EXPENDITURE OVER THE PERIOD 2012/13 – 2016/17
2016/17
2015/16
2014/15
2013/2014
2012/2013
Basic Education
R937.8 mln
R490.3 mln
R160.9 mln
R17.6 bln
R1.3 bln
Public Enterprises
R14.2 mln
R42.9 mln
R24 mln
R294.1 mln
R9.7 mln
Small Business Development
R120.9 mln
R28.6 mln
NO REPORT

6. COMPENSATION OF EMPLOYEES

7. PROGRAMMES: DEPARTMENT OF PUBLIC ENTERPRISES

8. MAIN REASONS FOR UNDERSPENDING DEPARTMENT OF PUBLIC ENTERPRISES
Unfilled funded & critical positions (32 in total)
19 vacant critical positions vacant
NB: In the Portfolio Management and Strategic Partnerships Programme
Mostly Chief and Deputy Director positions
Is the Department in the position to monitor the performance of key SOEs (.i.e Eskom, Denel, Transnet, ALEXKO, SA Express & SAFCOL)?

9. PROGRAMMES: DEPARTMENT OF SMALL BUSINESS DEVELOPMENT

10. MAIN REASONS FOR UNDERSPENDING DEPARTMENT OF SMALL BUSINESS DEVELOPMENT
Unfilled funded & critical positions
Due to on-going organisational restructuring
Non-transferal of budget
Mostly in the SMMEs and Cooperative Programme Design & Support
Underspending on Cooperative Incentive schemes
Late Appointment of the Adjudication Committee
Is the Department in the position to create a conducive environment for small businesses?

11. PROGRAMMES: DEPARTMENT OF BASIC EDUCATION

12. MAIN REASONS FOR UNDERSPENDING DEPARTMENT OF BASIC EDUCATION
Delays in the implementation of the Kha Ri Gude programme
Poor performance on ASIDI (R947 million unspent)
withholding of the final transfer of R6.6 million of the HIV and Aids (Lifeskills) conditionalgrant to Limpopo.
The issue of mud schools in the Eastern Cape, will it be put to rest any time soon?
What is happening with the withholding of conditional grants in the Limpopo province?
Why always challenges in the implementation of the Kha Ri Gude programme?
What is happening with the Schools Nutrition Programme in KZN given recent media reports?

13. CORRECTIONAL SERVICES
SECTION B
WATER & SANITATION
CORRECTIONAL SERVICES
TRANSPORT

14. Water Affairs and Sanitation Available budget R15.2 billion, spent % or R18.9 million more than budget

15. Programme Expenditure Water Sector regulation only spent 81
Programme Expenditure Water Sector regulation only spent 81.4 per cent of R346.1 million. Water and Sanitation Services managed to spend 39.4 per cent of R738.1 million. Water Infrastructure and Development spent per cent of R12.0 billion. Water Planning and Information Management spent 85.4 per cent of R814.8 million In terms of economic classifications: The Department only 93.9 per cent of R3.3 billion on current payments. -Goods and services only spent 94.4 per cent of R1.6 billion. -Compensation of employees only spent 93.5 per cent of R1.5 billion per cent of R4.9 billion on payment for capital assets.
Summary of Key Reasons for under expenditure:
Unfilled vacancies, delays in processing invoices, reduced air and road travel, audit fees, non-finalisation and approval of audit plan, delays I concluding agreements with service providers for the National Water Resources and Sanitation Service Strategy, water and Sanitation Master Plan, feasibility and reconciliation studies,

16. Key Performance Indicator
2016
2015
Key Performance Area (KPA)
Annual Performance Plan
Non-compliance
Partially compliance
Strategic Management
PAIA
Non –compliance
Full compliance
Governance & accountability
PAJA
Organ Design
Human Resource Mngt
Employ Wellness
Human Resource Mgnt
Disciplinary Cases
PMDS HOD
Non- compliance
Human Resource Mngt
Pay of Supp. 30 days
Finance and Supply Chain

17. CORRECTIONAL SERVICES Available budget of R21
CORRECTIONAL SERVICES Available budget of R21.5 billion, spent 100 per cent, with R5.4 million more than allocation.

18. CORRECTIONAL SERVICES
Programme Expenditure
Care programme - spent per cent of R1.9 billion allocated.
Social Reintegration – spent per cent of R807.8 million allocated.
Administration – spent per cent of R3.8 billion allocation.
Rehabilitation – only spent 97.2 per cent of R1.2 billion.
Incarceration – only 98.0 per cent of R13.7 billion allocated.
In terms economic classifications:
Current payments have spent 100 per cent of the allocated R20.4 billion.
Compensation of employees have only spent 97.3 per cent of R14.8 billion.
Slight over expenditure of per cent on goods and services makes up the under expenditure on CoE.
Summary of key reasons for under expenditure – unfilled funded vacant posts, cost containment measures, the embargo implemented on acquisition of machinery and equipment.
Summary of key reasons for over expenditure: - the increase in the food prices for suppliers, fuel and vehicle repairs for fleet service, increase in the property payments, the payment of performance bonuses for non-SMS staff.

19. Key Performance Indicator
2016
2015
Key Performance Area (KPA)
Annual Performance Plan
Partial compliance
Non compliance
Strategic Management
Professional Ethics
Governance and Accountability
Fraud Prevention
Risk Management
Corp gov. ICT
PAJA
PAIA
HRP
HRM OD
HRDP
Recruitment
Employ Wellness
PMDS level 1 – 12
Disciplinary cases
Pay supply. 30 days
Finance and Supply
Unauthorised
Disposal management

20. TRANSPORT Available budget R56. 4 billion, spent 100. 2 per cent R117
TRANSPORT Available budget R56.4 billion, spent per cent R117.8 million more

21. Administration programme only spent 92.9 per cent of R365.1 million.
TRANSPORT
Maritime Transport programme spent per cent of the allocated R120.8 million.
Road Transport programme spent per cent of the allocated R25.0 billion.
Civil Aviation programme only spent 83.1 per cent of the allocated R210.4 million.
Administration programme only spent 92.9 per cent of R365.1 million.
In terms of economic classifications:
Current payments managed to spend 101 per cent of R1.1 billion allocated.
- Compensation of employees spent 90.9 per cent of R392 million allocated.
- Goods and services spent per cent of R751.8 million allocated.
- Capital payments have spent per cent.
Summary of key reasons for over expenditure: - due to the increase in the transfer payment for Railway Safety Regulator, transfers made to the Electrical National Traffic Information System (eNATIS),
Summary of key reasons for under expenditure: - unfilled vacant positions, less than anticipated invoices were paid, slow spending on review of Tax Recap model and Integrated Public Transport Network in municipalities, due to the discontinuation of national freight,

22. TRANSPORT
Key Performance Indicator
2016
2015
Key Performance Area (KPA)
Annual Performance Plan
Partial compliance
Strategic Management
PAIA
Non compliance
Governance and Accountability
Disciplinary cases
HRM
PMDS OD
Full compliance
Pay of Supp. 30 days
Finance and Supply Chain