1. Rannoi Sedumo – CFO (Acting HOD) Gilberto Martins – DDG PW
SELECT COMMITTEE ON FINANCE: Public Hearings on Conditional Grants and Capital Expenditure First Quarter results
Presentation by:
Rannoi Sedumo – CFO (Acting HOD)
Gilberto Martins – DDG PW
13 September 2006

2. CONTENTS Strategic Context Budget trends Roads infrastructure
Provincial Infrastructure Grant
Departmental Infrastructure budget
Gautrain
Public Works infrastructure
Client Department budgets
13 September 2006

3. VISION AND MISSION Vision
Socio-economic growth, development, and an enhanced quality of life for all people in Gauteng
Mission
To develop an integrated, sustainable infrastructure, which promotes a people-centered, innovative, developmental public works and an accessible, safe and affordable movement of people, goods and services
13 September 2006

4. SIX (6) STRATEGIC OBJECTIVES
Provision of accessible, affordable, reliable, safe, integrated and environmentally sustainable public transport system
Effective management and transformation of transport and socio-economic infrastructure related institutions, systems and processes
Support economic growth and investments through the provision of appropriate transport systems and socio-economic infrastructure
Integrate transport systems and socio-economic infrastructure systems in the Gauteng Growth and Development Strategy and development plans of other spheres of government
Implement the Expanded Public Works Programmes in a manner that optimizes employment and addresses economic and social needs of the poor
Efficient and effective management of the Department
13 September 2006

5. 1st Quarter Expenditure Review
Financial year 2006/07
Period : April to June 2006
13 September 2006

6. Budget Spending trends
13 September 2006

7. 13 September 2006

8. 13 September 2006

9. 13 September 2006

10. Conditional Grant
The department is a recipient of the Provincial Infrastructure Grant from National Treasury
The grant is used for maintenance and rehabilitation of roads
A business plan was submitted as required by Division of Revenue Act
13 September 2006

11. 13 September 2006 Quarter Expenditure Provincial Infrastructure Grant
Actual
Year
Quarter 1
Quarter 2
Quarter 3
Quarter 4
TOTAL
BUDGET
R'000
2006/07
34,834
46,749
51,487
31,259
164,329
163,098
% of Total
21%
28%
31%
19%
100%
Estimate
Quarter
Expenditure
13 September 2006

12. 13 September 2006

13. 13 September 2006

14. 13 September 2006

15. 13 September 2006

16. Key projects in Roads Infrastructure
Construction of the dual carriageway and two intersections for Cosmo City
Construction of K60 in Sunninghill
Construction of a dual carriageway from Dalpark to Heidelberg - K109 Old Heidelberg road
Rehabilitation of the Cullinan road in the Dinokeng area
13 September 2006

17. GAUTRAIN
Delay in the sign off of the financial implications of the project might lead to under expenditure.
Indications are that the financial closure will be reached towards the end of September 2006.
This milestone will accelerate expenditure.
13 September 2006

18. GAUTRAIN EXPENDITURE BUDGET R’000 ACTUAL VARIANCE % SPENT 4 641 000
5,5
13 September 2006

19. Gauteng Department of Public Transport, Roads, and Works- “The Preferred Service Provider”
13 September 2006

20. DPTRW – Vote 9 : Program 2 – Capital Works
To construct new facilities
Upgrade , rehabilitation, maintain existing facilities
Implement client departments needs
Render professional and technical service
Ensure optimum usage and benefits of provincial property portfolio
13 September 2006

21. Expenditure Report – Prg 2 :Public Works Capital Works
Programme
Number
Budget
April 2006
Exp
May 2006
June 2006
Total 1st Quarter 2006 Exp
% 1st Quarter Exp
Program 2 R R R R R
16%
Notes:
Expenditure in the April is low due to commencing of work on site. New project started in this financial year have a low capital expenditure in month 1.
To ensure that expenditure is maintained at minimum average of app R12 mil per month in accordance with budget allocation, April month under spending is being factored in to proceeding months.
Monthly project review meeting being held to monitor expenditure.
13 September 2006

22. 13 September 2006

23. DPTRW – Vote 9 : Program 2 – Maintenance
Upgrade , rehabilitation, maintain existing facilities
Implement client departments needs
Render professional and technical service
Ensure optimum usage and benefits of provincial property portfolio
13 September 2006

24. Expenditure Report – Prg 2 :Public Works Maintenance
Programme
Number
Budget
April 2006
Exp
May 2006
June 2006
Total 1st Quarter 2006 Exp
% 1st Quar Exp
Program 2 R R R R R
32%
Note:
The Pretoria region has the largest number of Public Works facilities that it is required to maintain, hence the budget allocation is large in comparison to the other regions ie Pretoria Region = R 10 mil : Springs Region R 1.0 mil.
Expenditure is in line with the projection at present.
Monthly project review meeting are held to review progress and outputs.
13 September 2006

25. 13 September 2006

26. Expenditure Report – Social Development
Programme
Number
Budget
April 2006
Exp
May 2006
June 2006
Total 1st Quarter 2006 Exp
% 1st Quarter Exp
Capital: R R R R R
43 %
Maintenance : R R R R R
21%
13 September 2006

27. 13 September 2006

28. Expenditure Report – DACE
Programme
Number
Budget
April 2006
Exp
May 2006
June 2006
Total 1st Quarter 2006 Exp
% 1st Quarter Exp
Capital: R R R R R
60%
Maintenance : R R
R 940 R R 1%
13 September 2006

29. No allocation
13 September 2006

30. Expenditure Report – Health
Programme
Number
Budget
April 2006
Exp
May 2006
June 2006
Total 1st Quarter 2006 Exp
% 1st Quarter Exp
Capital: R R R R R
41%
Maintenance : R R R R R
26%
13 September 2006

31. 13 September 2006

32. Expenditure Report – SRAC
Programme
Number
Budget
April 2006
Exp
May 2006
June 2006
Total 1st Quarter 2006 Exp
% 1st Quarter Exp
Capital: R R R R R
27%
13 September 2006

33. DPTRW – Vote 9 : Program 5 – EPWP
Enable economic upliftment and empowerment
Reduce infrastructure backlogs
Alleviate unemployment by creating jobs
Facilitate skills development through training
Target woman, youth, disabilities job creation
13 September 2006

34. Expenditure Report – Prg 5 - EPWP
Programme
Number
Budget
R 000
April 2006
Exp
May 2006
June 2006
Total 1st Quarter 2006 Exp
Available
budget
% 1st Quarter Exp
Program 5 R
45%
13 September 2006

35. 13 September 2006

36. Wayforward
Introduction of multi year financial budgeting and implementation for projects.
Life cycle budgeting to be developed at project identification phase.
Contractual implementation in line with CIDB requirements.
Construction Contact Centres established to assist with contractor development and project assistance.
13 September 2006

37. Monitoring capacity and planning
Monthly Expenditure Report meetings are held between programme managers and the Finance branch.
Senior quarterly management meetings are used to discuss performance of the various programmes.
The Executive Management committee also receives monthly expenditure report from the CFO.
The HOD and DDG PW holds one-on-one meetings with individual managers from time to time to ensure accountability for service delivery.
13 September 2006

38. Monitoring capacity and planning
At unit level performance is monitored against operational plans.
Monthly and quarterly infrastructure reports are send to Treasury.
Project Management Resource Groups assist in ensuring performance happens at site level.
Client departments needs/plans developed and implemented.
13 September 2006

39. Service Level Agreements
SRAC has been signed in August 06
Social Development , final draft with client for legal review and comments, will be signed 2 weeks post comments received by Public Works.
13 September 2006

40. Service Level Agreements
Health Department was signed July 06.
DACE Final draft to DACE , if approved to signed 19th Sept
SLA’s with Blue IQ are in place for the Cradle of Humankind and Dinokeng projects.
13 September 2006

41. Thank You
“In order to achieve real action you must yourself be a living part of Africa and of her thought; you must be an element of that popular energy which is entirely called forth for the freeing, the progress and the happiness of Africa.”
Frank Talk , Steve Biko , I write what I like
13 September 2006