1. DEPARTMENT OF HEALTH AND SOCIAL SERVICES
MPUMALANGA PROVINCE
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
Health Services: Vote 10
Public Hearings on Conditional Grants and Capital Expenditure
Presentation to the Select Committee on Finance
11 May 2007
"Siyanakekela"

2. TABLE OF CONTENETS
Budget and Expenditure Outcomes on Conditional Grants
Budget and Expenditure Outcomes on Capital Budget
Monitoring capacity for the financial year 2006/07

3. Budget and Expenditure Outcomes on Conditional Grants

4. Budget and Expenditure Outcomes: Conditional Grants
Conditional Grant Name
2006/07 Adjusted Budget
Funds Received
Pre-audited Amount spent 31 March 2007
Pre-audited Variance 31 March 2007
Pre-audited % spent 31 March 2007
% Spent 31 March 2006
% Spent 31 March 2005
% Increase/decrease from 05/06 to 2006/07
% Increase/decrease from 04/05 to 2006/07
% Increase/decrease from 04/05 to 2005/06
R’000 %
Comprehensive HIV/AIDS
107,709
110,709
100%
86%
14% 0%
National Tertiary Services
45,571
93%
96% 7% 4%
(3%)
Health Professions Training and Development
54,363
2,079
82%
(4%)
(18%)
Hospital Revitalisation
72,896
72,895 1
74%
59%
26%
41%
33%
Provincial Infrastructure
46,646
46,645
95%
63% 5%
37%
32%
Forensic Pathology Services
41,531
23,195
18,335
56%
43%
13%
(44%)
(57%)
TOTAL
371,716
351,299
20,417
81%
78%
17% 3%

5. Budget and Expenditure Outcomes: Conditional Grants
Of the budgeted amount of R371,716 million an amount of R351,299 million i.e. 95% was spent at financial year end. This represents an increase of 14% from the percent expenditure of the 2005/06 financial year.
Four (4) conditional grants record 100% expenditure while one (1) record 96% and one (1) records 56%.
Following grants are at 100%:
Comprehensive HIV and AIDS,
National Tertiary Services,
Hospital Revitalization,
Provincial Infrastructure.

6. Budget and expenditure outcomes: Conditional Grants
Health Professions Development and Training Grant
At 96%, The Health Professions Training and Development Grant records under spending of R2,079 million.
The unspent funds are part of the funds allocated to Philadelphia Hospital which was transferred to Limpopo Province as part of the re-demarcation of municipal boundaries.
The Department awaits a claim from the Limpopo Province to substantiate this amount.
The Department has applied for the roll over of the amount of R2,079 million.

7. Budget and Expenditure Outcomes: Conditional Grants
Forensic Pathology Services
At 56%; and a variance of R18,335 million, the expenditure on this grant is low.
The low expenditure is attributed to:
An amount of R13,205 million budgeted for infrastructural projects could not be spent because of delays in the appointment of service providers.
There were delays with the procurement of equipment (including c-arms) for R3,347 million.
Vehicles procured for R1,783 million are awaiting conversion (refrigeration).

8. Budget and Expenditure Outcomes: Conditional Grants
Forensic Pathology Services
The unspent funds are committed and Treasury approval has been requested for the roll over amount of R18,335 million.
The service providers for the capital projects (building of mortuaries at Ermelo and Secunda) have not been appointed yet.
The appointment of these contractors is expected to be finalized by June 2007.
The unspent funds are committed and Treasury approval has been requested for the roll over of the amount of R18,335 million.

9. Challenges
Conditional grants
HR capacity constraints to implement and monitor business plans adequately.
Definitions of tertiary services not standardized, therefore data collection not uniform between provinces.
Insufficient capacity (electronic systems and HR) to accurately collect and analyse data.
Recruitment and retention of professionals is a challenge impacting on delivery on certain grants such as HIV and AIDS Grant.
National short supply of specialists is a challenges on the development of tertiary services in the province.

10. Budget and expenditure outcomes on Capital Budget

11. Budget and Expenditure Outcomes: Capital Budget Health Component
2006/07 Adjusted Budget
Pre-audited Amount spent 31 March 2007
Pre-audited Variance 31 March 2007
Pre-audited % spent 31 March 2007
% Spent 31 March 2006
% Spent 31 March 2005
% Increase/decrease from 05/06 to 2006/07
% Increase/decrease from 04/05 to 2006/07
% Increase/ decrease from 04/05 to 2005/06
R’000 %
Buildings and fixed structures
134,350
155,637
(21,287)
116%
103%
262%
13%
(146%)
(159%)
Machinery and equipment
135,863
89,110
46,753
66%
87%
43%
(21%)
23%
44%
Software and other intangible assets
130
(100%)
292%
105%
(192%)
(5%)
187%
TOTAL
270,213
244,877
25,336
91%
96%
74%
17%
22%

12. Poor workmanship by contractors delays service delivery for facilities
Challenges
Capital Budget
Late appointment of contractors for infrastructural projects led to the under expenditure
Poor workmanship by contractors delays service delivery for facilities

13. Monitoring capacity for the financial year 2006/07

14. Monitoring Capacity
Weekly discussion sessions are conducted to monitor the progress on conditional grants
Quarterly performance reviews are conducted to monitor progress on both financial and non financial information

15. THANK YOU