1. Presentation of the 4th Quarter Financial Performance of the Department to the Standing Committee on Appropriations (SCOA) 24 August 2010 1

2. Purpose of the presentation
To present the financial performance of the department for the 4th quarter of the financial year ending 31 March 2010.
To provide explanations on the unspent funds under Programme 2,Provision of Land and Accommodation and incentive grants under Programme 3. 2

3. Total Department: Financial Performance per Economic Classification
Adjusted Budget Allocation
2009/10
Exp as 31 Mar 2010
Exp % as at 31 March 2010
Exp %
as at 31 Dec 2009
% increase in expenditure
Comments
R'000
Compensation of employees
99%
72%
27%
Goods and services
61%
38%
Increased spending is largely attributable to the R30 mil written off against fruitless exp and R10 mil against irregular exp and debtors.
Property Management
100%
97% 3%
Transfers and subsidies
95%
84%
11%
Infrastructure
86%
55%
31%
Trends normal with the payment projections
Machinery and equipment
47 524
41 080
59%
Total
94%
73%
21% 3

4. Breakdown of the Expenditure Capital Budget- Infrastructure
Item
Allocation
R’000
Actual
Expenditure
% Spent
as at March 2010
Departmental
58,260
51,991
89%
Accessibility for disabled people
20,000
14,614
73%
Dolomite Risk Management
25,376
21,168
83%
Land Ports of Entry
668,284
626,205
94%
Prestige
415,569
356,229
85%
RKTP
33,150
25,832
78%
Rolled over funds & adjustment budget paid to the PMTE
241,686
157,544
65%
TOTAL
1,462,325
1,253,584
86%
Roll over approved was for the following projects:
RKTP - R 54,285 million
Departmental – R 6,187 million
Land Port of Entry – R 17,101 million
Prestige – R 34,113 million
Adjustment budget of R 130 million was for Prestige accommodation for newly appointed Ministers and Deputy Ministers 4

5. Reasons for under spending under the Infrastructure budget
Departmental Budget
Delays related to the acquisition of prestige accommodation
Suitability and availability of houses
Price negotiation process
Land Ports of Entry
Skilpadshek : Negotiations for the acquisition of a portion of property (tavern) required for the construction of the Border Post precinct delayed the execution of the project . Estimated under-expenditure.
Lebombo : The One Stop Border Post project initially planned for Lebombo had to be restructured into phases due to financial constraints and legal implications relating to operations and construction required on foreign territory. Estimated under-expenditure. 5

6. Reasons for under spending under the Infrastructure budget cont.
Re kgabisa Tshwane Programme:
Delay in obtaining approval for additional work for Government Garage
project.
Delay in the procurement process to appoint consultants for the joint DPW and Tshwane Inner City Precinct Plan. 6

7. Reasons for under spending under the Infrastructure budget cont.
DOLOMITE :
Delay in procuring specialist consultants and contractors required to implement dolomite projects.
ACCESSIBILITY :
Non responsiveness of the bidders delayed the appointment of service providers.
Cancellation of SAPS facilities from the program due to devolution process, which led re- prioritisation of buildings occupied by DPW.
Change of the initial scope of work. 7

8. Year on Year Comparison- Capital Expenditure
86%
87%
57% 8

9. Financial Performance per Programme
Adjusted budget allocation
2009/10
Exp as 31 Mar 2009
Exp % as at 31 Mar 2010
Exp % as at the 31 Dec 2009
% increase in expenditure
R'000
R’000
Prog 1. Administration
100%
79%
21%
Prog 2.
Provision of Land and Buildings
95%
75%
20%
Prog 3.
National Public Works Programme
83%
59%
24%
Prog 4.
Auxiliary and Associated Services
47 131
46 207
98%
96% 2%
Total
94%
73%
Increased spending under Prog 3 relates to incentive grants which were not yet due at the end of Q3. 9

10. Expenditure Analysis- Earmarked Funds
Function
Budget
‘000
Expenditure
31 Mar
% Spent
Property Management (Office Accommodation)
100%
DPW Infrastructure
86 %
CIDB
59 269
100 %
Council of the Built Environment
24 155
Agrement Board
8 554
Boundary Fencing
7 364
5 654
77%
Augmentation of the PMTE
Property Rates – Conditional Grants
EPWP INCENTIVE GRANTS
61 %
Independent Development Trust (IDT) intermediaries
14 500 10

11. Expenditure Analysis- Earmarked Funds Cont.
Function
Budget
‘000
Expenditure
% Spent
EPWP – Non State Sector
100 %
CETA (HR)
2 215
887
40 %
Parliamentary Villages
6 607
Energy Efficiency
35 000
19 465
56%
State Functions
22 106
23 940
108 %
Commonwealth War Graves
16 478
14 775
90%
TOTAL
93 % 11

12. EPWP incentive update 1 12

13. 1.0 Introduction
The EPWP incentive has now been introduced to all sectors of the EPWP from the 10/11 financial year.
The Infrastructure sector incentive is applicable to Provincial Departments and Municipalities.
The Environmental sector incentive is applicable to National Departments through their appropriations from National Treasury.
The Non-state sector grant is paid to Non-Government Organisations ( NGOs) and Non-Profit Organisations through the Independent Development Trust ( IDT) which was appointed as the intermediary.
The Social sector grant has been paid as a schedule 5 grant to Provincial Departments of Social Development and Education. 13

14. 2.0 EPWP infrastructure sector incentive progress for 09/10
financial year after the 3rd quarter of the 09/10 financial year
( paid in 4th quarter 09/10)
5 out of the 16 Provincial Departments have been paid incentive payments totaling R 53,633 million considering 3rd quarter payment reports. Total payment to Provincial departments considering payments in previous quarters is R116.6 million out of an allocation of R million (77% of Provincial allocation).
47 of the 68 eligible municipalities have been paid their incentive payment of R 78.6 million considering the 3rd quarter report of the 09/10 financial year. Total incentive payment to municipalities after the 3rd quarter is R million out an allocation of R million ( 57% of Municipal allocation).
Total incentive payment to Provincial Departments and Municipalities made for the 09/10 financial year totals R million, out of the total allocation of
R million, representing expenditure of 66% of the allocation for the 09/10 financial year. 14

15. Performance on the EPWP incentive grant by Provinces after 3rd Quarter 09/10 financial year ( paid in 4th quarter 09/10)
Province
Incentive allocation for the financial year
(R’000)
Incentive payment after 3rd quarter 09-10
Incentive payment for 3rd quarter 09-10
( R’000)
Eastern Cape
29,992
17,457
15,381
Free State
23,008
Gauteng
500
KwaZulu-Natal
84,180
84,854
35,100
Limpopo
Mpumalanga
5,047
Northern Cape
North West
7,192
Western Cape
14,269
3,152
Total
151,419
116,581
53,633 15

16. Performance on the EPWP incentive grant by municipalities after 3rd Quarter 09/10 financial year ( Paid in the 4th quarter of the 09/10 financial year).
Province
Incentive allocation for the financial year
(R’000)
Incentive payment after 3rd quarter 09-10
Incentive payment for 3rd quarter 09-10
Eastern Cape
53,559
7,818
3,905
Free State
9,073
1,956
1,047
Gauteng
34,881
59,875
51,038
KwaZulu-Natal
39,974
26,102
15,038
Limpopo
18,328
6,140
2,626
Mpumalanga
13,454
2,453
1,468
Northern Cape
15,496
5,769
960
North West
9,694
2,787
1,493
Western Cape
7,289
1,271
708
Total
201,748
114,170
78,644 16

17. 3.0 Performance on the EPWP infrastructure Incentive after the 4th quarter of
the 09/10 financial year ( Paid in the 1st quarter of the 10/11 financial year)
8 out of the 16 Provincial Departments will be paid incentive payments totaling R million considering EPWP 4th quarter report for the 09/10 financial year . Total payment to Provincial departments considering payments in previous quarters is R million out of the full incentive allocation of R million for 09/10 reporting ( 85% of the full allocation). This payment includes 4th quarter payment paid in the 10/11 financial year.
36 out of the 68 of the eligible municipalities will receive a total incentive payment of R million considering the 4th quarter report for the 09/10 financial year.
Considering the 4th quarter report ( 3rd quarter for municipalities) 56 of the eligible 68 municipalities will have accessed R million out of the available R million available in the 09/10 municipal financial year ( 69% of the allocation for the municipal financial year). This is comparable to the 75% of allocation expected to be paid after 3 of the 4 quarters in the municipal financial year. 17

18. The EPWP incentive grant is beginning to have the intended performance of encouraging Public bodies to exceed their Full Time Equivalent ( FTE) work opportunity targets. Provincial Departments in KZN, GP, WC and EC have exceeded their targets and have paid extra incentive amounts.
11 of the 68 eligible municipalities in GP,KZN, LP, NW and WC have already exceeded their FTE targets by the 4th quarter of reporting ( 3rd quarter of municipalities) for 09/10.
The number of Municipalities that will access the incentive will increase to 126 municipalities in the 10/11 financial year from the 68 municipalities in the 09/10 financial year. 18

19. 4.0 Progress of the Infrastructure sector incentive in the 10/11 financial year
For Provincial Departments, the incentive has been paid to 8 of the eligible departments in 5 provinces. R million will be paid out of the R million available for the 10/11 financial year considering 1st quarter reporting. This represents 26% of the Provincial allocation.
For Municipalities, 56 of the eligible Municipalities have been paid the incentive in all the Provinces. R million of the R million will be paid considering 1st quarter reporting. This represents 32% of the Municipal allocation for the 10/11 financial year.
Provincial Departments in Gauteng, Mpumalanga, Western Cape, Northern Cape and North West reported in the 1st quarter 10/11 but did not exceed the threshold for incentive payment. 19

20. 4.1 Performance on the EPWP incentive grant by Provinces after 4th quarter 09/10 reporting
Full Incentive allocation for the reporting including 4th quarter payment in 10/11
(R’000)
Incentive payment after 4th quarter 09-10
Incentive payment for 4th quarter 09-10
( R’000)
Percentage of 09/10 full incentive paid
(%)
Eastern Cape
39,989
34,789
17,332 87
Free State
30,678
Gauteng
667
2,498
375
KwaZulu-Natal
112,240
115,259
30,269
103
Limpopo
2,617
393
Mpumalanga
6,730
Northern Cape
North West
9,589
Western Cape
15,969
1,700
2395
Total
201,892
171,132
54,551 85 20

21. 4.2 Performance on the EPWP incentive grant by Municipalities after 4th quarter 09/10 reporting ( 3rd quarter 09/10 for municipalities)
Province
Incentive allocation considering 09/10 municipal financial year
(R’000)
Incentive payment after 4th quarter 09-10
Incentive payment for 4th quarter 09-10
( R’000)
Percentage of 09/10 full incentive paid
(%)
Eastern Cape
80,339
16,778
8,961 21
Free State
13,609
2,093
137 15
Gauteng
52,077
99,081
39,208
190
KwaZulu-Natal
59,962
50,572
24,469 84
Limpopo
27,495
17,358
11,240 63
Mpumalanga
20,181
247 34 12
Northern Cape
23,244
5,801 32 25
North West
14,541
11,581
8,797 80
Western Cape
10,934
1,855
584 17
Total
302,383
207,610
93,463 69 21

22. 4.3 Performance on the EPWP infrastructure incentive by Provinces after the 1st Quarter of the 10/ financial year reporting
Province
Infrastructure Incentive allocation for the 10/11 National financial year (R’000)
1st Quarter incentive payment for the financial year
(R’000)
Total incentive disbursed
In the 10/11 financial year (R’000)
Percentage of the 10/11 incentive disbursed
Eastern Cape
60,354
5,640
19,011 31
Free State
13,767
817 6
Gauteng
38,821
2,498
Kwa-Zulu Natal
169,470
28,896
59,300 35
Limpopo
2,903
2,617 90
Mpumalanga
18,074
Northern Cape
1,167
North West
2,897
Western Cape
23,218
1,700 7
Total
330,671
35,352
85,943 26 22

23. 4.4 Performance on the EPWP infrastructure incentive by Municipalities after 1st quarter reporting
Province
Infrastructure Incentive allocation for the 10/11 National financial year (R’000)
1st Quarter incentive payment for the financial year
(R’000)
Total incentive disbursed
In the 10/11 financial year (R’000)
Percentage of the 10/11 incentive disbursed
Eastern Cape
97,806
6,844
16,182 17
Free State
34,400
1,402
1,539 4
Gauteng
165,048
69,984
110,476 67
Kwa-Zulu Natal
123,613
18,056
42,526 34
Limpopo
55,355
4,955
16,195 29
Mpumalanga
37,288
568
602 2
Northern Cape
50,399
1,889
1,931
North West
36,049
1,887
9,400 26
Western Cape
26,038
823
1,408 5
Total
622,996
106,119
200,259 32 23

24. 2.1 Performance on the EPWP infrastructure incentive by Provinces after the 1st Quarter of the 10/ financial year reporting
Province
Infrastructure Incentive allocation for the 10/11 National financial year (R’000)
1st Quarter incentive payment for the financial year
(R’000)
Total incentive disbursed
In the 10/11 financial year (R’000)
Percentage of the 10/11 incentive disbursed
Eastern Cape
60,354
5,640
19,011 31
Free State
13,767
817 6
Gauteng
38,821
2,498
Kwa-Zulu Natal
169,470
28,896
59,300 35
Limpopo
2,903
2,617 90
Mpumalanga
18,074
Northern Cape
1,167
North West
2,897
Western Cape
23,218
1,700 7
Total
330,671
35,352
85,943 26 24

25. 2.1 Performance on the EPWP infrastructure incentive by Municipalities after 1st quarter reporting
Province
Infrastructure Incentive allocation for the 10/11 National financial year (R’000)
1st Quarter incentive payment for the financial year
(R’000)
Total incentive disbursed
In the 10/11 financial year (R’000)
Percentage of the 10/11 incentive disbursed
Eastern Cape
97,806
6,844
16,182 17
Free State
34,400
1,402
1,539 4
Gauteng
165,048
69,984
110,476 67
Kwa-Zulu Natal
123,613
18,056
42,526 34
Limpopo
55,355
4,955
16,195 29
Mpumalanga
37,288
568
602 2
Northern Cape
50,399
1,889
1,931
North West
36,049
1,887
9,400 26
Western Cape
26,038
823
1,408 5
Total
622,996
106,119
200,259 32 25

26. 3.0 Non State Sector (NSS) Progress for the 2009/10 financial year
The final budget allocation for the NSS was R m. This was the result of an additional allocation of R114.5m for the Community Works Programme (CWP) in the adjustment budget on the original budget ofR90m.
Included in the NSS allocation is a transfer of R14.5m to the Independent Development Trust (IDT) as the appointed intermediary to manage the NSS on behalf of DPW.
The allocation for the CWP was made up of wage costs and non-wage costs. The non-wage costs amount to R58.5m and the wage costs R91m
By the end of the 2009/10 financial year DPW had transferred the full allocation to the two programmes. 26

27. 3.1 Community Works Programme Budget performance for the 2009/10 financial year
Table : Site level expenditure, 2009/10 27

28. 3.2 Non Governmental Organizations (NGOs) performance for the 09/10 financial year
The full allocation of R40.1 million was transferred to NGO’s participating in the institution based programme.
The full allocation is for wages at a rate of R50 per person per day. 28

29. I thank you 29