1. Conditional Grants Presentation
Northern Cape
Province
Select Committee on Finance – Tuesday 07th June 2005

2. Vision
Health service excellence for all.

3. Mission
Empowered by the Peoples‘ Contract, we are committed to provide quality health care services; we will promote a healthy society in which we care for one another and take responsibility for our health; our caring, multi-skilled professionals will integrate comprehensive services, using evidence-based care-strategies and partnerships to maximise efficiencies for the benefit of all.

4. Trends in Allocations

5. Trends in Allocations
The conditional grants increase at a dramatic rate over the six year period indicated above.
The first MTEF period (2002/03 – 2004/05) shows a overall increase of 67%.
The main contributors to this increase are the Hospital Revitalisation and comprehensive HIV & AIDS grants.
The decrease in Integrated Nutrition Programme is because of the Primary School Nutrition component being managed by the Department of Education from 2004/05.

6. Trends in Allocations
The second MTEF period (2004/05 – 2007/08) shows an overall increase of 166%.
The other grant that show a dramatic increase of 208% is the National Tertiary Services grant.
The Integrated Nutrition Programme is phased out in 2006/07.

7. Conditional Grants Expenditure Performance

8. Conditional Grants Expenditure Performance

9. Conditional Grants Expenditure Performance
The Department spent all its conditional grants in 2002/03 except the small under-expenditure of 1.8% on the Hospital Revitalisation.

10. Conditional Grants Expenditure Performance

11. Conditional Grants Expenditure Performance

12. Conditional Grants Expenditure Performance
The under spending on capital is mainly because of the following:
Delays by Public Works with the tendering process (eg advertisement, adjudication and awarding of contracts)
Lack of appropriate skills and capacity in Public Works.
The revision of the designs to include the requirements of the Health and Pharmaceutical Acts.
Lack of business principles by contractors resulting in cash flow problems and delays in completion of contracts.

13. Conditional Grants Expenditure Performance
No reference bench marks of design exist nationally on the Mental Health facility as no new facility has been built in more than the last two decades.
The availability of material in the rural areas poses a challenge for the timely completion of projects.

14. Conditional Grants Expenditure Performance
Remedial Measures
Formal establishment of the Departmental project office to maintain pressure on implementation process rendered by the Department of Public Works.
Appoint appropriate technical assistance to render advise for the management of cash flow, the resources and time management.
Delegation of the tender processes to the Departments as part of their Supply Chain Management.
Capacity of contractors to be categorised into their appropriate levels of capacity.

15. Conditional Grants Expenditure Performance

16. Conditional Grants Expenditure Performance

17. Monthly Reports
The Northern Cape Department of Health is the receiving Department and does not transfer grants to other departments or institutions.

18. Hospital Revitalisation
Number of hospitals completed on the programme - 2
Each completed hospital should have achieved modernized infrastructure, up to date equipment, improved management systems and quality assurance systems.

19. Economic spin offs Unemployment in the Northern Cape is high.
Revitalisation projects assists in improving the economic climate
Multi – procurement policy
Capacity building

20. Submission of Business Cases – 2005/06
Business Cases have been submitted

21. THANK YOU