1. Gauteng Department of Health
Presentation to the NCOP on Conditional Grants
11 May 2007

2. Overview Budget Trends Pre-audited expenditure Capital and maintenance
Monitoring
2007/08 Budget and MTEF

3. Conditional Grants National Tertiary Services Grant (NTSG)
Health Professions Training and Development Grant (HPTDG)
Revitalisation Grant (Capital)
Provincial Infrastructure Grant (Capital)
HIV and AIDS Grant
Forensic Pathology Services Grant (FPS)

4. Budget Trends
The allocation for the NTSG and HPTDG has not kept up with CPIX or medical inflation.

5. Pre-audited expenditure at year closure 06/07
Conditional Grant
Adjustment Budget
Allocation
2006/7
Amount Transferred
YTD Unaudited expenditure 2006/7
% Spent
R’000 %
National Tertiary Services R R
100 %
Health Professions Training & Development R
HIV and AIDS R R R
Revitalisation
(Capital Projects) R R
84 %
Provincial Infrastructure (Capital Projects) R
Forensic Pathology R R
81 %

6. Conditional Grants Graph

7. 2006/07 Expenditure
All conditional grants have been spent in full except for
Forensic Pathology Services which has under spent by R8,8 million
Replacement of cold rooms and body cabinets at institutions. equipment not delivered
Vehicles ordered in 06/07 but not delivered by the end of 31 March 2007.
Salary costs for the 1st quarter were paid by SAPS, claim of R3m was received but lower than anticipated
70% of posts filled by August due to delay in recruitment processes.
Delay in the approval of facility projects by National Public Works, DAC gave standing delegations to enable procurement processes to take place without waiting for National.
Emergency repairs on mortuaries done to the value of R4,6m, department received a claim of R164k.

8. 2006/07 Expenditure Revitalisation – R63,8 million
During the 06/07 financial year it was reported that there will be an over expenditure on this grant
Projects were scaled down significantly to avoid over expenditure, in some projects Public works negotiated with contractors to stop work where possible without incurring penalties
Although additional funding was received in the 2006/07 Adjustments budget in January 07, it was difficult to bring on track those projects where contractors were stopped this resulted in the under expenditure specifically the revitalisation grant
Applied to Treasury for a roll over of funds.

9. Capital and Maintenance Expenditure
Pre-Audited outcome for 2006/07
Adjustment Budget
R’000
Expenditure
% spent
Buildings
88.00%
Equipment
82.42%
Maintenance of facilities
103.16%

10. Capital and Maintenance Expenditure
The under-expenditure on buildings relates to the unspent revitalisation and forensic pathology grants
The under-expenditure on equipment is due to commitments incurred during 06/07 but deliveries and payment were not done before year closure as well as less equipment purchased than was budgeted for.

11. Monitoring
Financial
Monitoring is done monthly by analysing reports and verifying information
Between Health and Works
Within Health between Branches and Directorates
Between Health and Treasury
Between Gauteng Health and the National Department of Health
Compliance with reporting requirements
Monitoring has been strengthened in 2006/7.
Executive Support Programme Manager dealing specifically with capital expenditure was appointed
Project managers have been appointed and they work closely with the Department of Public Works to monitor projects
Financial Manager within the ESPM branch has been appointed to manage and monitor project spending

12. 2007/08 and MTEF Budget
2007/08 BUDGET AND MTEF ALLOCATIONS FOR CAPITAL INFRASTRUCTURE AND EQUIPMENT
Source
2007/08
2008/09
2009/10
R'000
Hospital Revitalisation Conditional Grant
503,284
428,545
716,267
Provincial Infrastructure Conditional Grant
81,699
86,981
91,329
Equitable Share capital projects
235,683
155,436
146,852
Equipment
375,807
268,781
301,381
1,196,473
939,743
1,255,829

13. 2007/08 BUDGET AND MTEF ALLOCATIONS FOR OTHER CONDITIONAL GRANTS
2007/08 and MTEF Budget
2007/08 BUDGET AND MTEF ALLOCATIONS FOR OTHER CONDITIONAL GRANTS
Source
2007/08
2008/09
2009/10
R'000
National Tertiary Services
1,959,399
2,161,529
2,290,054
Health Professions Training
581,741
610,828
614,812
Forensic Pathology Services
83,749
77,472
69,969
HIV and AIDS
399,604
479,502
602,885

14. Challenges
Lack of adequate funding for all capital Infrastructure projects
Lack of due diligence in project implementation and management by project teams characterised by poor delivery, extensions and cost escalations of projects
Insufficient funding for medical equipment and declining budgets in real terms

15. Certified Business Plans 07/08
Grant
Business plans
National Tertiary Grant
Yes
Health Professions Training and Development Grant
Revitalisation Grant (Capital)
Provincial Infrastructure Grant (Capital)
HIV and AIDS Grant
Forensic Pathology Services Grant

16. Thank you